Have You No Shame, Sir

Congress is moving as quickly as it can to recoup some, or all, of the $165 million paid out in bonuses to AIG executives. The behavior of these individuals is truly shameless.

Senate Majority Leader Harry M. Reid (Nev.) said Finance Committee Chairman Max Baucus (Mont.) would unveil a proposal by tomorrow that would tax up to 98 percent of the bonus money. "That will certainly send a message to the people at AIG and all others who try to benefit from the hardships the American people face," Reid said.

In the House, Reps. Steve Israel (N.Y.) and Tim Ryan (Ohio) introduced the "Bailout Bonus Tax Bracket Act" to create a 100 percent tax on bonuses over $100,000 that are distributed to employees of financial firms receiving federal bailout funds. Currently, the IRS withholds 25 percent from bonuses less than $1 million and 35 percent for bonuses more than $1 million dollars. The Israel-Ryan proposal would apply to all bonuses to government-supported firms such as AIG that have been given since Jan. 1.

The congressional efforts come as New York Attorney General Andrew M. Cuomo announced that at least 73 employees of AIG's Financial Products unit -- the London-based division of the insurance giant that sold the high-risk derivatives blamed for the company's near-collapse -- got bonuses of at least $1 million. He sent AIG subpoenas yesterday seeking data on who received the bonuses and the justification for them.

I like the House plan. Why not tax at 100% BONUS money going to incompetent executives? If they want to receive their bonuses, then get off the Corporate Welfare train. Many of these same individuals have no problem attacking the truly poor who receive benefits.

The bonuses, guaranteed through employment contracts that had been made public to the government earlier and paid out on Friday, were offered as a way to lure or keep top talent to help sort out the financial situation at AIG, officials there said. But when news of the payments surfaced in recent days, lawmakers turned to the Obama administration, demanding that the U.S. Treasury attempt to claw back some of the money.

WHAT "top talent"?? You mean the people who got their company INTO this mess? It's time to clean house.

On Monday Sen. Charles Grassley had a suggestion for top AIG executives:

A prominent U.S. senator gibed that executives of the troubled insurer American International Group Inc might consider suicide, adopting what he called a Japanese approach to taking responsibility for their actions.

Senator Charles Grassley, the top Republican on the Senate Finance Committee, made the comments Monday in an interview with a radio station in his home state of Iowa.

"The first thing that would make me feel a little bit better toward them (is) if they'd follow the Japanese example and come before the American people and take that deep bow and say, I'm sorry, and then either do one of two things: resign or go commit suicide," Grassley said.

That might be a bit drastic, but I can certainly appreciate Grassley's anger.

Backtracking on his earlier comments, Grassley had this to say today:

"What I'm expressing here, obviously, is not that I want people to commit suicide," Grassley said on Tuesday. "But I do feel very strongly that we have not had statements of apology, statements of remorse, statements of contrition on the part of CEOs of manufacturing companies or banks or financial services or insurance companies that are asking for bailouts, that they understand that they are responsible for running their corporation into the ground."