Well it looks like the whole American International Group Inc. (NYSE:AIG) bonus hoopla might not blow over after all. With public anger growing, Congress is jumping all over the issue and vowing not to let the troubled insurer's executives walk away with the money, even if it means writing laws specifically to get money back.
While Democrats haven't yet matched Iowa's Republican Sen. Chuck Grassley's suggestion that
AIG's brass commit suicide, they are throwing out some radical threats on the $165 million in bonus money.
According to
The Associated Press, "House and Senate Democrats were crafting separate bills to tax up to 100% of generous bonuses awarded by companies rescued by taxpayer money."
Senate Majority Leader Harry Reid, D-N.V., flatly said that "recipients of these bonuses will not be able to keep all of their money." New York Sen. Chuck Schumer delivered the ultimatum: "If you don't return it on your own we will do it for you."
With the uproar of the bonus money at a fever pitch, both sides of the aisle are racing to express their outrage, which could pave the way for bipartisan legislation targeting compensation at recipients of government bailouts and significantly affecting the Obama administrations ability to aid other financial services companies that run into trouble in the future. -
George White See story from The Associated Press See related story about Grassley from Dealscape
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