January 15,2010

Grassley Questions Severance Package for AIG Executive

WASHINGTON – Sen. Chuck Grassley of Iowa today asked the Troubled Asset Relief Program (TARP) special master for compensation to explain why an AIG executive who resigned is entitled to a multi-million dollar severance agreement. The company received significant TARP money, and the federal special master for compensation is charged with ensuring appropriate compensation for program participants.

“The taxpayers are fed up with massive payouts to executives at companies that took taxpayer money,” Grassley said. “The special master for compensation should account for a multi-million dollar severance agreement for this AIG executive.”

Grassley was an advocate for creating a special inspector general for TARP to try to hold the program accountable and co-sponsored legislation to strengthen the ability of the special IG to conduct oversight after the TARP program changed its original mission. Grassley also battled the White House after it tried to subject requests of the special IG to the red tape of the Paperwork Reduction Act.