Day 61: Bailout executives panic – House passes 90% tax on bonuses

Niklas — Fri, 20 Mar 2009 17:14:53 +0000

As if jumping executives from the roofs of bank and wall street buildings wasn’t enough of a public sidewalk hazard, the House overwhelmingly passed a near total tax on bonuses paid to employees of AIG and other bailout biters. And to really nail the coffin – it’s retroactive.

The faces of Evil according to bank executives.

The House vote sent some employees into a panic about the prospect of, in effect, having to give up money they might already have spent. And it had regulators fearing it could undermine the Treasury’s efforts to stabilize the financial system if banks tried to flee the bailout program or if other firms refused to participate in coming rescue operations to protect their bonuses, some executives said.

Story on NYTimes

Ps! If you happen to be a sad executive, here’s a little tax free bonus from us on WIOD: the streamed Leno interview with Obama.

Day 57: Obama Will Try to Block A.I.G. Bonuses

Niklas — Tue, 17 Mar 2009 10:28:18 +0000

Obama on Monday vowed to try to stop the faltering insurance giant American International Group from paying out hundreds of millions of dollars in bonuses to executives, as the administration scrambled to avert a populist backlash against banks and Wall Street that could complicate Mr. Obama’s economic recovery agenda.

President Obama, with Treasury Secretary Timothy F. Geithner

“In the last six months, A.I.G. has received substantial sums from the U.S. Treasury,” Mr. Obama said. He added that he had asked Treasury Secretary Timothy F. Geithner “to use that leverage and pursue every single legal avenue to block these bonuses and make the American taxpayers whole.”

Story on NYTimes

Obama Announces Plan to Aid Small Businesses

Seeking to ease the credit freeze for small businesses, the Obama administration will inject $15 billion into the industry, buying up securities that are linked to small-business loans.

Story on NYTimes

Also as a little sidenote, Obama will appear on Jay Leno on thursday. Don’t miss it!

Details on Reuters

What is Obama doing? » bonuses

Day 61: Bailout executives panic – House passes 90% tax on bonuses

Day 57: Obama Will Try to Block A.I.G. Bonuses