WASHINGTON, D.C. – Congresswoman Nancy Boyda (Kansas Second District) has written a letter to U.S. Treasury Secretary Henry Paulson and Chairman of the Federal Reserve Ben Bernanke following yesterday’s announcement of a massive government bailout of America International Group (AIG). Rep. Boyda’s letter asks that outgoing CEO Robert Willumstad not be awarded an $8.7 million golden parachute.

Representative Boyda wrote: 

“For the second time in as many weeks, the federal government has committed tens of billions of dollars to support a private company, so, for the second time in as many weeks, I write you to ask that these taxpayer dollars not go into the pockets of those who led the companies into failure. 

“According to the New York Times, Robert Willumstad, outgoing CEO of American International Group (AIG), could receive a severance package worth $8.7 million after being forced out yesterday. The thought that someone could collect $8.7 million after serving less than three months and presiding over uninterrupted collapse is absurd. The idea that the money could come from hard-earned tax dollars is unconscionable.

“If AIG was in such desperate need for money that it needed taxpayer dollars just to survive the week, they certainly don’t have money to spare on golden parachutes. If tax dollars must be used to benefit private companies, they must be used as prudently as possible. 

“The shareholders and American taxpayers have already suffered because of this failure of management. It is only fair that the managers themselves must share in the losses. At a time when federal tax dollars are being injected into private companies in larger and larger amounts, it is critical to lay down a clear, ironclad principle that nobody should be getting rich off of taxpayer dollars. I hope you will agree, and I look forward to your prompt reply.”