H.R. 1577

To require the Secretary of the Treasury to pursue every legal means to stay or recoup certain incentive bonus payments and retention payments made by American International Group, Inc. to its executives and employees, and to require the Secretary's approval of such payments by any financial institution who receives.

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111th CONGRESS

1st Session

H. R. 1577

IN THE HOUSE OF REPRESENTATIVES

March 18, 2009

Mr. Paulsen (for himself, Mr. Lance, Mr. Lee of New York, Mr. Roe of Tennessee, Mr. Posey, Mr. Guthrie, Mr. Schock, Mr. McClintock, Mr. Olson, Ms. Jenkins, Mr. Luetkemeyer, Mr. Rooney, Mr. Thompson of Pennsylvania, Mr. Cao, Mrs. Lummis, Mr. Chaffetz, Mr. Austria, Mr. Harper, Mr. Hunter, Mr. Coffman of Colorado, Mr. Cassidy, Mr. Fleming, and Mr. Connolly of Virginia) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To require the Secretary of the Treasury to pursue every legal means to stay or recoup certain incentive bonus payments and retention payments made by American International Group, Inc. to its executives and employees, and to require the Secretary’s approval of such payments by any financial institution who receives funds under title I of the Emergency Economic Stabilization Act of 2008.

1.

Plan to pursue certain payments to executives

Notwithstanding any other provision of law, not later than 2 weeks after the date of enactment of this Act, the Secretary of the Treasury shall establish a plan to pursue every legal means to stay or recoup incentive bonus payments and retention payments made after September 16, 2008, by American International Group, Inc. to its executives and employees.

2.

Condition on further assistance

The Secretary of the Treasury shall not authorize any payment or other provision of Federal assistance to American International Group, Inc., unless the executives and employees then employed by American International Group, Inc. surrender to the Treasury any incentive bonus payments and retention payments received by such executives and employees after September 16, 2008.

3.

Prohibition on certain payments without Treasury approval

Notwithstanding any other provision of law, the Secretary of the Treasury shall require any financial institution that has received any assistance under title I of the Emergency Economic Stabilization Act of 2008, and that has not repaid in full such assistance not later than two weeks after the date of enactment of this Act, to submit a incentive bonus and retention payment plan for approval by the Secretary before making any incentive bonus payment or retention payment to any executive or employee.

4.

Prohibition on certain contracts without Treasury approval

Notwithstanding any other provision of law, the Secretary of the Treasury shall require any financial institution that has received any assistance under title I of the Emergency Economic Stabilization Act of 2008, and that has not repaid in full such assistance not later than two weeks after the date of enactment of this Act, to submit for approval by the Secretary any contract which provides for the payment of incentive compensation or bonus or retention payments to any executive or employee of such financial institution before such institution enters into such contract.