Treasury Considers Bailout Reduction For AIG

By Marc Ambinder

I'm hearing that....The Department of the Treasury is looking at ways to simply reduce the amount of money it's lending to AIG; they'd start with the latest $30 billion line of credit and subtract the value of the bonuses paid. And that's the question: to how much, precisely, do the bonuses add up? Published values range from $165 million to $1.2 billion. Another problem: the Treasury wants to set a uniform standard for companies taking bailout money, and it may not be possible simply to punish just one.

(b) Speaking of punishing AIG: Rep. Gary Peters  (D-MI) plans to introduce a bill to tax AIG bonuses at a high rate this year. A spokesman for Peters says that details are still being worked out. Targeting legislation at one company is tantamount to the Congress's passing a bill of attainder against AIG. But these are extraordinary times.

This article available online at:

http://www.theatlantic.com/politics/archive/2009/03/treasury-considers-bailout-reduction-for-aig/1551/