Former employees of bankrupt Washington Mutual Inc. may get an unpleasant surprise if the new
bonus tax legislation aimed at American International Group Inc. (NYSE:AIG) is approved by the Senate.
Many of the employees who are helping transition the WaMu branches in J.P. Morgan Chase & Co. (NYSE:JPM) branches
starting this Monday were given double salaries
to stay on board with the bank, according to the
Portland Business Journal. Those employees who accepted bonuses as an incentive to be part of J.P. Morgan Chase's transition team could lose 90% of the cash they received if the bill does pass. The bill would tax all bonuses paid to employees of companies that have received more than $5 billion in federal bailout money (J.P. Morgan received $25 billion). The bonus tax would be retroactive to Dec. 31, 2008.
The Wall Street Journal reported that the Senate may not consider the bill until mid-April.
- Maria Woehr (follow me on twitter:
@newsgirlmw)
Also see:
J.P. Morgan: The WaMu zombie slayerWaMu zombies arguments on the riseFDIC attacked by zombie WaMu
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