Schakowsky and House Democrats Send Letter to AIG on Possible Lawsuit Against the American Taxpayers and U.S. Government
Washington, DC (January 9, 2013) — Congresswoman Jan Schakowsky released the following statement on the letter she led to AIG in response to reports that the company is considering joining a lawsuit against American taxpayers and the U.S. government:
"Today I will be sending a letter, along with 13 other House members, urging AIG not to join a lawsuit seeking damages from the U.S. government, which comes after the American taxpayers saved the company with an unprecedented $182 billion bailout.
"AIG played a significant role in the collapse of the American economy as a result of its irresponsible business practices.
"I'm shocked to see AIG running commercials, celebrating its repayment of taxpayer-funded loans, and then turning around and slapping these same taxpayers in the face by considering joining this lawsuit. It is the American taxpayers and the federal government that are responsible for AIG's existence today. I urge AIG not to join the lawsuit and instead to work to earn back the trust of the American public."
Full text of the letter below and list of cosigners below.
Robert H. Benmosche
President and CEO
American International Group, Inc.
180 Maiden Lane
New York, NY 10038
Dear Mr. Benmosche:
We write in response to reports that American International Group, Inc. (AIG) is considering joining a lawsuit filed by Maurice Greenberg against the federal government over the terms of the record $182 billion bailout of your company. We urge you not to participate in that suit.
Your company is now running commercials celebrating AIG's repayment of taxpayer-funded loans that helped the firm avoid bankruptcy. Clearly, you recognize that the $182 billion loan saved your company, and we are pleased that the loan was repaid. However, for our constituents, who continue to suffer the consequences of the subprime mortgage crisis, the impacts of your company's actions are still being felt.
As you are well-aware, AIG played a major role in the collapse of the national mortgage market and the plummeting of home sales from which our country is only beginning to recover. The subprime mortgage market grew to almost $1.5 trillion by the time AIG was bailed out, and over the past four years, nearly four million families lost their homes. AIG's sale of more than $400 billion in credit default swaps greatly exacerbated the mortgage crisis and facilitated the continued sale of highly-rated, poorly-vetted, and economy-crippling subprime loans and mortgage-backed securities.
The federal government, and more importantly, American taxpayers, are solely responsible for your company's existence today. We believe that the terms of the loan were not onerous and were designed to protect the public interest. We urge you to not to join the suit, and instead to continue to work to earn the trust and confidence of the American people.
Sincerely,
Signers (14):
Jan Schakowsky
Elijah Cummings
Barbara Lee
George Miller
John Conyers
Daniel Lipinski
Mike Quigley
Corrine Brown
Anna Eshoo
Bobby Rush
Sheila Jackson Lee
Mike Honda
Jackie Speier
Keith Ellison