CNN

Well the Obama administration has its hands all over this and then feigns outrage to stir public opinion. Senator Dodd added an executive-compensation restriction to the bill. That amendment provides an “exception for contractually obligated bonuses agreed on before Feb. 11, 2009,” Obama of course signed this into law. Last but not least, we know Geithner has been involved both in his position at NY Fed and now as Treasury Secretary. This makes Geithner a key figure in both the Bush bailout and Obama's. Now they are going to tax these bonuses after they signed off on them all along?

Baucus wants to tax, but Dodd know they where going to get these bonuses gave AIG exemptions on these bonuses back in Feb and O sign it into law. I'm sure the rest of congress didn't know that AIG was going to do this. Oh wait that right these have been in place since last year. Does nobody read in congress anymore or did they know?

It was niave of individual Congressmen to think that they were influential enough to SHAME anyone on Wall Street into behaving appropriately.

Unfortunately the people working there pat themselves on the back when they get a check, no matter what moral, ethical, or legal crimes are committed to trigger the flow of money.

While only 1/10th of 1% of the bailout money, this action sends a message that GREED in the face of MONEY LOOSING INCOMPETENCE is not part of a CAPITALISTIC system.

Congress must remain PROACTIVE in every bill it writes to combat this mindset. It goes beyond the financial industry and into the Board room of every publically traded company on the stock exchange.

I'd like to see an SEC requirement that the "Annual Letter To Shareholders" must include a table which shows the Top 50 earners of:

Salary
Cash Bonus
Stock Granted & Excercised
Options Granted & Excercised
Defferred Compensation

Finally, let's the (salary + bonus) divided by the annual earnings of the company.

This ratio will allow shareholders to compare the performance of executives from one company to the next. Those where this ratio is high will have to explain why thy are worth more, per dollar of profit, than the next guy.

They knew about the bonuses before they gave out the bailout money. The stimulus allows all pre-agreed bonuses to remain, now the Senate is trying to make AIG out as the crooks. This bailout mania is snowballing and taking this country in a dangerous direction.

To go a step further:

If Bush's bailout policies were so bad, then why is Obama continuing the policypolicies, and in fact enlarging them?

Bush made things bad, Obama is making them worse.

But then again, why should we be surprised? The Democratic (of which Obama was a voting member) Congress and Bush just through money at bad companies with no specifications of how the money was to be spent.

Reid, Pelosi, Bush, McCain, and Obama are all ignorant suckers, and the American people are the ones who are going to suffer.

This people is the problem with these bailouts. People think that because we bailed them out, we can tell them what to do and how to spend the fund. If you apply that same logic to where the money really came from (borrowed from China) Then the Chinesse premier has every right to tell Obama how to run the country.

The solution is no more bailouts.

wow... the narrowmindedness of some of these posts is baffling. the tax proposed is to recoup the money... how else would the public like to get the money back? the government has no standing to intervene in private contracts.. none. the only avenue we have to get OUR money back is to tax these bonuses. Obama haters- chill out, look at the big picture.

In the short term, the AIG bonuses infuriate me...but in the long term, I am concerned that President Obama and his team allowed this to get by them. A proverbial ounce of prevention would certainly have resulted in several million pounds of cure. Now they are trying to close the barn door after the horse is gone.

Here's an idea for a reality show. Require each of the bonus recipients to appear before an audience of average citizens and to receive their bonus check in hand AFTER explaining to the audience why they are entitled to it.

Next, AIG will be sending their eceutives on a much needed, all expense paid, vacation to the Bahamas!

Hey CNN, why aren't you hammering the point that this nothing less than an Obama administration and Congress, specifically Chris Dodd, complete screw up? Dodd is bringing the tax garbage up now because he is the fool that put in the amendment that would allow these bonuses to go through and Geithner either ignored or overlooked the fact that all large corporations have employee contracts including bonuses. Both of these just show complete incompetence. Could the fact that Dodd was the biggest recipient of campaign contributions from AIG and that AIG is based in Connecticut, where Dodd is from, contributed to this?

Don't everyone get too excited about the proposed 90% on AIG bonuses. You need to be more concerned when this IS NOT limited to AIG! Congress (the Libs in particular) has never met a tax they didn't like!

FOLKS --

This is NOT a Harry Reid or Chris Dodd issue. This BONUS agreement was signed, sealed and delivered when the merger took place under George W. Bush. AIG did not disclose this fact, funny that huh? NOW we know WHY!!!

So in all fairness, we need to get the facts straight!!!

The FACT is, the Government NOW owns 80% of AIG stock, they should FORCE them into voiding out the agreement or SELL parts of AIG to the highest bidder!!!

Where there's a will, there's a way to NAIL AIG for their blatant stupidity and negligence. You have to beat a rat at their own dirty game, but it always takes TWO to play.

What a great idea! I recommend a 90% tax on any amount exceeding the 2009 poverty level income base of $10,834.

I hope they do tax these fools. My father invested in AIG and when we cashed in his investment we were taxed big time. So it's only right, tax the little people and no the ones who got this company into this mess.

Here's what I think. First of all, before supporting or resenting the notion of tax provisions on AIG, stop the funding of it all together. Next, have the people who were RESPONSIBLE for these greedy acts, come up and make testimony to Congress. Then, after bipartisan converstations between Congress and the White House, and if the taxing notions seems legitimate, use tax provisions and other methods of getting the money back.

Here's what I think. First of all, before supporting or resenting the notion of tax provisions on AIG, stop the funding of it all together. Next, have the people who were RESPONSIBLE for these greedy acts, come up and make testimony to Congress. Then, after bipartisan converstations between Congress and the White House, and if the taxing notions seems legitimate, use tax provisions and other methods of getting the money back.

Here's what I think. First of all, before supporting or resenting the notion of tax provisions on AIG, stop the funding of it all together. Next, have the people who were RESPONSIBLE for these greedy acts, come up and make testimony to Congress. Then, after bipartisan converstations between Congress and the White House, and if the taxing notions seems legitimate, use tax provisions and other methods of getting the money back.

Here's what I think. First of all, before supporting or resenting the notion of tax provisions on AIG, stop the funding of it all together. Next, have the people who were RESPONSIBLE for these greedy acts, come up and make testimony to Congress. Then, after bipartisan converstations between Congress and the White House, and if the taxing notions seems legitimate, use tax provisions and other methods of getting the money back.

Yes, but will anyone really follow thru? So much talk and sometimes so little do.

AIG isn't a government run organization. Why is the government involved at all?

Just to preface, I make 14$ an hour and was recently unemployed for 3 months: The bonuses to these guys do not bother me at all. They got where they are through there own efforts. Good for them. People would argue that these guys "ran the company into the ground and put the economy where it is today". That is very nieve... How is this any different then the "Bailout" we are providing to people who picked up mortgages they couldn't afford?

I just can't wait to see the republicans rise up against interfering with the private sectors bonuses. After all, gouging the public and the government seems to be the republican's god given right.

Show us your true colors boys and continue to obstruct the Democrats that are trying to fix the economic mess you republicans got us into.

The fake and contrived outrage from the white house and THOSE THAT WROTE the bailouts is disgusting and pathetic.

Diversion ALERT.

Don't look at how incompetent and usless my administration is look at how incopetent those fools are.

POLITICS AS USUAL and NOTHING NEW AGAIN.

Hordes of people should gather in front of AIG with protest signs in hand while making much noise.

It's going to be extremely hard to pull this off in a Constitutional manner.

Nationalize AIG now and fire all who took a bonus and the CEO. Also tax the bonus at the highest rate allowed by law. These people sent this company down and need to go, not be given a bonus for poor performance.

I would love to make sure they all get fired and all of the money is returned, but if this is the only legal action we have, then I'm all for it! I also agree that the names of all these execs should be made public.

All of our fighting about who's fault it is/was isn't helping us either. Both dems and repubs were part of this AIG mess.

i like your comment go a step further. this why we need to be socialist!!! because we aren't responseable for our action and we need the goverment to take care of us because we are to stupid to. so bring it on Obama and blame it on someone selse itis the American way.

Who was it that put together the original bailout under Bush? Oh, yeah, it was Geithner.

Who was it that put together the bailouts under Obama? Oh, yeah, it was Geithner.

Geithner, the only man Obama thought could do this job, is the one responsible for the fact that there were no provisions submitted with the bailout bills.

A Democrat-controlled congress p@ssed the bills without adding any provisions on the bailout money. Obama signed them without suggesting they be rewritten to include provisions.

But the majority of posts on this blog are still blaming Bush...and yelling about greedy CEOs.

Does anyone ranting on hear know that not all the "bonuses" went to overpaid executives? Sure, some of it did, but the pitchfork and torch crowd aren't even interested in finding out more facts before jumping on the cl@ss-warfare wagon. This 90% tax will end up affecting people who make less than $250,000 and Obama promised that was not going to happen.

NO MORE BAILOUTS AND NO MORE STIMULUS! The US and Canadian governments have proven to the people that they are incompetent in dealing with these issues. Let AIG and all other "too big to fail" corporations fail as the market is trying to do. Thanks, but we'll take our chances and save us, our children and grandchildren trillions of dollars in taxes. It's a no brainer!!

AIG can say that its in the contracts and that legally they need to pay them, but its not their money to pay bonuses, that money comes from the bailout fund and taxpayers... i thought bonuses were based upon exceptional performance? how can the people who made such a mess actually qualify or expect a bonus? they should consider themselves lucky to keep their jobs. =)

The same idiots that gave away all the money without strings are now complaining that the money is not be used as they want? Gee, I wonder how we got in this mess to begin with?

We need to fire all the politicians! No more incumbents! Throw them all out, like the garbage they are.

Capitalism at its best. We deserve everything that we get. A great accountant or manager is judged by how many loopholes he can find to gain a profit. Money is the root of all evil and it will forever be the downfall of the United States of America. The self proclaimed Christian nation...please... Nothing we do abides by the rules located in the Bible, because our rules are located within our currency.

Our government is corrupt because it is ran by human beings. Humans are weak for power and self love. Everybody has a price and every man can be corrupted for the right price. Capitalism...

@ Kevin in Ohio

Would you rather they make no attempt to recoup the money? I bet you'd love that since it would be an even worse position for them to take...just keep in mind though: the GOP voted for the bailout and the GOP's retard in chief ran the administration that handed out the money with zero oversight. Fact is, taxation is the only way to get it back. They're simply using the tools available to them.

Who wrote the part of the bill that says they get to keep their bonuses?
hmm.. who was it?

Oh yea it was Dodd.

Don't you people ever read and understand the truth??

I know the bonuses are annoying, but this seems like a particularly dangerous precedent.

I don't understand how can bonuses be paid out when they did not do the job they were hired to do? They should not receive any money was it not within the contract if they did not deliver no bonuses would be paid? STUNNED

If working people don't do the job they were hired to do, no bonuses are paid and most likely will not have a job to go back too.
once again STUNNED

The administration KNEW about these bonuses THEY KNOW the loopholes.

WAKE UP America the outrage only started WHEN THE MEDIA STARTED TO REPORT ON THE BONUSES.

Fake outrage by the white house pathetic and OLD POLITICS not new or change.

When will Americans wake up and see how their faith in this administration is being used for selfish political proposes and for the benefit of a small powerful few.

The last eight years is continuing but only with a different cast (in some cases) of fools.

I have faith Americans will see it sooner than the last time.

Let the perps take their non-deserved bonus, and take 100% of it under the "stupidity" tax .

I know the bonuses are annoying, but this seems like a particularly dangerous precedent.

90%? How about 100% and make good and sure it can't be wiggled through some loophole on next year's tax returns.

How shameless can people be? Their "company" is already on the public dole, the only reason they still even have jobs - and they want personal handouts to boot.

Here's a novel idea. Cut the salaries of every CEO and high level exec in this country to not more than 20x the pay of their highest-paid employee. Not enough? Then feel free to go somewhere else if you think you can get more. Heard that before? That's what they've been telling YOU for the last 20 years.

Memo to the overpaid God-complex execs in this country: YOU CAN BE REPLACED. Should be plenty of smart young people coming out of business school who'd be happy to take your jobs. They want the opportunity and haven't developed your entitlement mentality yet.

If the contracts state that a bonus should be paid, then the bonuses probably have to be paid (or AIG faces possible legal action from execs expecting the bonuses). However, those bonuses should be paid from AIG funds, not from the bailout. Where would AIG have found the bonuses if the bailout had not occurred? How would those bonuses have been paid if not with taxpayer monies? Those are the questions AIG needs to answer. If AIG cannot afford to pay bonuses without taxpayer dollars, then AIG needs to take the "hit" on the legal issues surrounding the executives' contracts as well.

With all the suffering caused.......all bonuses should be paid back with interest. Then the CEO's should be fired. No package plan given.
Then all the higher paid staff,above the 250,000.00 mark should give back any and all bonuses/if they do not want to, then they should be fired.
Clean house.
The American people have had their houses cleaned away from them.
These "fat cats" deserve a cell next to Madoff.
All Corporate greedy people ........should feel the same pain.
If they loose their way of life...........oh well.
Their little homes will feel like a huge house, next to all the people now forced to live in tents/carboard boxes.
Do not stop with AIG.......kepp on with all the Greedy CEO's wherever they may be,Insurance companies of all kinds/hospital/homes/car/,etc.....especially banks.
Go after the money that has been put "off shore".
Go after and tax the companies that have moved their companies to other countries. Only give a tax break "if" they come back to the U.S.

I wish I worked for a company like AIG, drive it to the ground and still make millions at the end of the year. I wonder if they're hiring. I can see how their annual review of employees goes:

"So what have you done this year to make this company worse than it has been?"

"Record loss profits!"

"Excellent!. Here's your $1M bonus."

that's not enough, they need to give back all the taxpayers 80%, don't give them anymore stimulus money, let them go bankrupt, then if they can give their so called "SMART" people a bonus , then that will be JUST FINE.

Why did the Obama administration not manage the bailout before it got to this point. It is Obama's fault as much as AIG execs. Come on Mr. Obama. Strart leading instead of reacting.

Awesome. That's kind of funny.. 90% tax. AIG is out of control. How on earth did they think they could do this without anyone being upset.

This is nothing more than legislative theft by Harry Reid and Chris Dodd. If f the democrats were to do this to the employees of AIG who have bonuses as part of their legal contractual agreement, than that will open the doors to them going after any and all earnings that we make. Lets say you earn 40K per year and get a year-end Christsmas bonus of say $1000, are you willing to cough up all but $100 for Obama and his tax hungry goons?

The bailout money came from the taxpayers. The executives are spending some of that money on bonuses. The government is going to tax those bonuses. So does that mean that the money now belongs to the government and we will never see it again?

Why in the world do the AIG executives feel entitled to bonuses when they were responsible for running the company into the ground??
Let them sue the American taxpayer's!!! What other ethical company would hire these financial idoits!!
Too bad the original money given to AIG last September had NO accountability or stings attached. The American taxpayer is now paying dearly for that stupid mistake.

Why hold back to a potential maximum 90% tax rate? Go to 120% to not only recover the TARP funds that were squandered, nay, ABUSED by these crooks, but also to heap upon them penalties for the economy that they were paid to ruin!

This would be funny if I weren't so angry.

Christopher Dodd is the one that wrote the Bonuses into law. He is the Number 1 on AIG's Donor list.

Who is number 2? Why, none other than President Obama, who VOTED FOR the law Dodd wrote.

I generally use my bonus for the family vacation. I wonder how long before the Senate democrats decide regular Americans really don't need those either...

This is political grandstanding. While I'm not a fan of bonuses for failure. I'm not a fan for emotional taxing of people either. Set this precedence and who knows what else we'll be taxed for – "doing better than the average worker tax" possibly.

Additionally, these AIG executives should be:
1) fired from their posts;
2) audited by the IRS;
3) made to serve community service in soup kitchens or shelters that are providing services to people who have lost their homes and jobs, in exchange for the millions they have received from same said victims/tax payers.

Oh, if we could also take a kidney from each of them, that would be great!

We, the government own 80% of AIG. Here's my suggestion – no additional money. Go in, dismiss the Board of Directors, fire the CEO, but a closed sign on the door and begin liquidation to pay back the government debt. I believe in a "hand up", not a "hand out". Time for the AIG foolishness to end.

Better idea....stop the payment of them altogether.

Wait – let's tax every benefit everyone gets and tax the businesses so they all leave – then the Socialist Democratic Leftist party will get what they want – the NANNY STATE of the USSA and they will be in power forever and ever.

Yeah...., let's start taxing individuals based on...

TAX Them? How about arresting them? Why is Stanford still not in jail?

Take back the money anyway you have to. The AIG execs need to realize that they are no longer the sole owners of the company. The American People owns 80% of the company. If lawsuits come about for trying to take back OUR money, then let them come. Those execs need to realize that We, The People, don't mind watching them go under. Although their collapse will be the destruction of the economy, the need to stop taking our kindness for weakness. I'm glad t see that NY A.G. Cuomo issued subpoenas for those execs who recieved bonuses. Put them on front street and expose them!

"McCain and Obama collected $103000 and $82600 from AIG"
source: Federal Election Commission

We have to end the donations political candidates get from corporations. It is either lobby money or bundles / PACs (Obama).

Only then can our government do what is needed beyond this "good talking to" the president and congress is doing.
DNC / RNC = corporate stooges.

Beware of taxes aimed at individuals for punishment or "fairness" reasons. This is unconstitutional, as these idiots in Congress should know.

Unbelievable the stupidity of these guys.

These FOOLS need to be FIRED, FIRED, FIRED!!!

If this was any average citizen they would be in JAIL now. AIG needs to be knocked off it's HIGH PEDESTAL. The government owns 80%, so in a sense they need to START sending a clear message to AIG's CEO and the rest of AIG's Board.

This is utterly ridiculous that this company is NOT even a bank and yet is allowed to run amuck with my hard earn dollars!!! PISSED OFF does NOT even begin to describe the sentiments of the American people who have been DEMANDING something be done about AIG immediately!!!!

AIG needs a good "house cleaning".......along with a swift kick in the butt.

I say we release the names of every exec that took a huge bail-out and send the Paparazzi after them. A few weeks of being hounded should be plenty to shame them out of this behavior.

and don't give out these bailouts

this is not a capitalist system that the republicans have started

Bush's bailout is socialist, call it for what it is

Obama, shouldered with Bush's bailout is trying to reverse the course of the disaster he left Obama and the course chosen by Bush, so another bailout was necessary

But this has to stop, it is not healthy for our economy

what a nightmare Bush was and is

Love it....democrats very first solution is to TAX. Not surprised at all.