Zeal for battle over bonuses waning in Washington (Senate Shelves AIG Bonus Tax)

AP ^ | 3/26/2009 | Anne Flaherty

[mojito]

From the White House through the halls of Congress, Washington is losing its zeal for an all-out fight over hefty executive bonuses, now that it wants the financial companies it blames for the collapse of the U.S. economy to help clean up the mess.

The House Financial Services Committee on Thursday adopted a milder alternative to a bill passed last week that would have taxed away 90 percent of employee bonuses from companies getting federal bailout money. The new legislation would let bailed-out companies pay bonuses as long as the government determines the compensation is not "unreasonable or excessive."

Just what is unreasonable or excessive would be determined by financial regulators and the Treasury Department, where Secretary Timothy Geithner set off a public furor by not blocking $165 million in AIG payments to its financial products executives and traders on March 15.

The Senate, meanwhile, has put on hold a bill that Democrats unsuccessfully tried to advance last week. It would tax away about 70 percent of the employee bonuses at AIG and other companies getting more than $100 million in bailout money.

[mojito]

Looks like this little squall has passed.

[Wisconsinlady]

Aw, c’mon, ACORN! rev up the bus!

[tx_eggman]

I’d like to think sanity has prevailed but it’s just as likely that the good senators are simply passed out drunk in the Capitol cloakroom.

[Doogle]

...I guess when people started mentioning Fannie and Freddie the usual suspects in Washington got nervous, least it lead right to them

[Seaplaner]

...Obama to [LIE] on Jay Leno's late-night talk show the same day that he was "stunned" and would "do everything we can to get those bonuses back"

El Rushbo is precisely correct.

This is a carefully orchestrated red herring in order to deflect attention from the budget and Marxist/malignant narcissist Obama's falling poll numbers. And, it's also there to demonize the financial sector; thus, to pave the way for nationalization.

As an aside, how about income limitations on...

1. Lawyers,

2. Union leaders,

3. Show people, and...

4. Anyone who signs a book deal in the interim between an election and taking office?

.

[sionnsar]

I’d like to think sanity has prevailed but it’s just as likely that the good senators are simply passed out drunk in the Capitol cloakroom.

If it's the latter I'd happily contribute to a fund to keep them in that condition until the day (after) they leave office.