As I suggested in class, the bailout furor seems to be dying down. Some House leaders are claiming the bill has had its intended effect because so many AIG executives are returning the money:
House Majority Leader Steny H. Hoyer said Tuesday that a House-passed bill that would slap a 90 percent tax on bonuses paid to executives and others at companies receiving federal bailout aid seems to already have had much of its desired impact.
The bill (HR 1586) has been criticized by President Obama and some senators as potentially unconstitutional, and as bad policy precedent in any case.
Neither the House measure nor a companion bill (S 651) produced by the Senate Finance Committee are likely to move through the Senate anytime soon. But Hoyer, D-Md., said it appears that executives at American International Group Inc. still have received Congress’ message, because a large number of them have agreed to return their share of the $165 million bonus money that triggered public and congressional outrage.
“I think apparently the House bill had its intended effect. They’re giving it back,” Hoyer said, referring to New York Attorney General Andrew Cuomo’s announcement that about half of the money from the giant insurance company’s bonus program will be returned.
