Congress Goes After AIG Bonuses Again

The public outcry about AIG executives receiving more than $160 million in bonuses after being bailed out by the federal government continues. As a result, the House of Representatives is still trying to figure out how to respond. On Wednesday, the House passed another bill that is aimed at preventing excessive and unreasonable bonuses.

The bill, which was sponsored by Rep. Jim Himes of Connecticut and Rep. Alan Drayson of Florida, allows for industry regulators and the U.S. Treasury Secretary to decide whether or not bonuses are excessive or unreasonable. As advised by President Barack Obama, a delicate yet effective means was needed. A previous bill passed by the House has been deemed as too severe.

The companies that would be under scrutiny would be any company that receives federal bailout money. With so many companies being bailed out, this bill could have far reaching ramifications. Republicans in the House feared that this bill would scare away investors that would otherwise try to help the struggling financial industry.

In total, AIG has reportedly now taken more than $180 billion in bailout money from the United States federal government.

United States Capitol Building (Image: Flickr)