Washington, D.C. – In a letter today to Secretary of the Treasury Henry Paulson and Federal Reserve Chairman Ben Bernanke, Congressman Walter B. Jones (R-NC) joined fellow members of Congress, led by House Administration Committee Ranking Republican Vernon Ehlers, to express concern over a lavish $440,000 retreat held by American Insurance Group, Inc., after the company received an $85 billion loan from the federal government. The members of Congress call on Secretary Paulson and Chairman Bernanke to require AIG to repay any taxpayer funds that were misused for the retreat.

“AIG’s behavior is absolutely outrageous,” Congressman Jones said when news of the retreat first broke. “The gall of this company to beg for a federal bailout and then spend that money on a posh retreat for fat cats featuring fancy meals and spa treatments is just beyond the pale. AIG should immediately reimburse the Federal Reserve for that money, and Federal Reserve Chairman Ben Bernanke should demand that they do so. Chairman Bernanke should also take immediate action to put procedures in place to ensure that no companies receiving bailout money can repeat AIG’s egregious behavior.”

The text of the members’ letter to Secretary Paulson and Chairman Bernanke follows below:

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.

For additional information, or to schedule an interview with Congressman Walter B. Jones, please contact Kathleen Joyce at (202) 225-3415.