Lawmaker Backs Bill To Prevent Corporate Executives From Misusing Bailout Dollars

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(Sacramento, CA)
Friday, March 20, 2009

A State Assembly measure would ban California corporate executives from using bailout money for personal bonuses. 
The bill is getting some attention after insurance giant AIG was accused of abusing federal relief dollars. 
The bill was introduced by democratic assemblymember Pedro Nava.
It would impose fines of at least 100-thousand dollars against California regulated banks and other financial firms that misuse state and federal aid.
Nava says taxpayers have a right to be furious about AIG using some of its federal bailout for executive bonuses.  He says the same thing shouldn’t happen in California… 
“The federal bailout money is intended to increase liquidity in the banks which transfers into loans for people so that we can get the economy started again.  The idea of travelling in high flying aircraft and me paying for it isn’t a good idea…”
In addition to bonuses, Nava says the measure would make it illegal for executives to use bailout money for corporate jets, expensive hotels, conferences and lavish parties.  The California Bankers Association says it’s reviewing the measure and hasn’t decided whether it will support or fight the bill.