THIS IS A PRESS RELEASE FROM THE OFFICE OF WEST VIRGINIA CONGRESSWOMAN SHELLEY MOORE CAPITO.

CHARLESTON – Rep. Shelley Moore Capito (R-WV) released the following statement today, commenting on a bipartisan letter she signed to Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke regarding a $440,000 luxury junket taken by bailed out AIG executives:

“We have a right to know whether any taxpayer dollars went to fund this luxury vacation, and if they did, we want it back,” said Capito. “West Virginians must know that their tax dollars are being put to good use, and the Federal Reserve and Treasury Department must exercise their oversight to make sure that is the case.”

“The prospect of a $700 billion bailout left many West Virginians concerned about the federal debt and wasted taxpayer dollars. And unfortunately it took little time for those concerns to become reality. News of this AIG junket to California just days after their firm was bailed out by taxpayers is just the kind of nonsense that leaves most of us incensed.”

“This sort of excess was central to my concerns about the bailout legislation when it first came before the House and we’ve since seen that those concerns were justified.”

Note: Rep. Capito joined with a bipartisan group of her congressional colleagues in sending this letter to Secretary Paulson and Chairman Bernanke. Capito is the only member of the West Virginia delegation to sign the letter, which was sent Friday. Text of the letter can be found below.

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October 17, 2008

The Honorable Henry M. Paulson, Jr.
Secretary of the Treasury
1500 Pennsylvania Avenue NW
Washington, DC 20220-0002

The Honorable Ben S. Bernanke
Chairman, Federal Reserve Board of Governors
Twentieth Street & Constitution Avenue NW
Washington, DC 20551

Dear Secretary Paulson and Chairman Bernanke:

We write to express strong concerns about AIG’s possible misuse of federal taxpayer funds.

It has come to our attention that, after the Federal Government provided a loan of $85 billion to AIG, the AIG executives hosted a lavish $440,000 retreat at the St. Regis Resort in Monarch Beach, California. Even more troubling, the day after this was revealed to the House Oversight and Government Reform Committee, the New York branch of the Federal Reserve announced it will borrow $37.8 billion in investment-grade securities from AIG in exchange for cash.

At a time when many of our constituents have serious concerns about their own financial security, we demand that you ensure that no taxpayer funds were used by AIG to host this retreat. If taxpayer funds were used, we demand that AIG repay the American people in full. It is crucial that the American people be able to trust the actions of the Federal Reserve and the Treasury.

Sincerely,
Shelley Moore Capito
Member of Congress

Other Members of Congress