Is AIG Bonus Witch Hunt Unconstitutional?

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Question: Is this an attempt to sweep this ugly mess under the congressional carpert as it were? Will this be challenged in the courts as being unconstitutional and just how far reaching will this new tax law go and will it come back to haunt our law makers like it has for Senator Christopher Dodd?
The Bonus Money paid out by AIG is so outrageous and will this new Tax & Grab Law go after all other extravagant bonus packages paid by the AIG's of this corporate world?
Oh, the tangled tax web that our law makers weave....no wonder no one undestands the implications of the laws that they dream up.

W.G. Shields of CO 4:07PM March 19, 2009

This is why bankruptcy makes sense for Bankrupt companies. The judges in bankruptcy court are EXPERIENCED as opposed to the Mopes in Congress who only think they know everything.
Of course the Judges in Bankruptcy would have seen through this payoff scheme for Goldman Sachs et al.

DJC of FL 8:38AM March 18, 2009

It seems that any employment contracts that promised multi-million dollar bonuses to those who bankrupted the company are unconscionable and, therefor, unenforceable. Unconscionableness normally presumes that the duped party is sort of a simpleton, but that certainly seems applicable to someone here. Whether it's the AIG top execs, Hank Paulson, Tim Geithner or American voters somebody was definitely not too bright.

Tom Hanna of MO 4:22AM March 18, 2009

The rule of law is far more important to this country than the outrage.
I would also opine that Congress going after these bonuses ex post facto is
equally outrageous. The bonuses as the details unfold are disgusting. But a deals a deal.Fire the dopes who made this deal if we can. Or can the bonzos who signed off on it. Which may some of the loudest critics.

nspart of HI 12:21AM March 18, 2009

http://www.chicagotribune.com/news/nationworld/sns-ap-odd-blood-contract,0,7137055.story
"The Fourth District Court of Appeal in Santa Ana agreed with a lower court Tuesday when it ruled that a contract written in blood between two Korean businessmen is unenforceable."

Luther of IL 9:41PM March 17, 2009

What do the contracts say? They would have to be poorly prepared if enormous rewards are going to the worst and the dumbest who bankrupted their company and threaten to bankrupt a nation.
I'm sure a good lawyer could find grounds for breaking these bonus contracts. It would be like contesting a will in which some senile sugar daddy left all his money to his favorite prostitute and disinherited the children--a prima facie case of injustice. Chuck Schumer made a mistake popping off before a sound legal case could be prepared.
In the end might makes right and political will trumps rule of law, though we don't like to admit it. Look at Bush with his torture and illegal wiretapping. People who really believe in freedom and the Bill of Rights can bellyache all they want, but to the great unwashed masses of sheeple, security is more important than freedom, so Bush got away with it.

Luther of IL 9:17PM March 17, 2009

Sometimes traders bonuses are based on individual performance and not on company results. Before I would make a sweeping denunciation of this bonus program I would examine the details which is where the devil usually resides.
An individual who met his targets usually has a contract to be paid. I think he is in a strong position legally.
If our government taxes individuals retroactively as Senator Schummer proposes I believe they have precedent on their side. I don't know the law on this point. BUT the consequence will be to drive this business off shore. As Dimon says you vilify and you lose. We should be careful what we wish for.
However in Schummers case I am willing to take a chance.

nspart of HI 4:58PM March 17, 2009

Its hilarious that some conservative commentators still champion the criminal swindlers of the Bush Ponzi Era. How can anyone defend AIG's sleazy bonuses, really its not much different than Maddoff's profiteering.
Don't bother professing any faith in capitalism anymore, as your fanaticism to defend crony corruption gives away all your future punchlines.

Pablo of TN 3:24PM March 17, 2009

Jim Pethokoukis is still trying to find a way to blame Obama for the fact he couldn't get a date to the Prom in high school. Here is the thought process in Jim's head, if the Dems and Obama do something its bad. If the Rush and Repubs do something its good. Thats been decided before he even knows what the subject is. First time I heard Jim in an interview on a D.C. morning radio show last fall when he was applauding Bush's bailout plan and claiming that the "market would shoot up at least 1000 points when passed". Nice prediction Jim!!! Jim Pethokoukis can be found somewhere to the right of Attila the Hun in the whole grand scheme of things. I also want to point out that I am certainly not a Democrat, I'm an Independent who cant stand when people are so far left or so far right that they stop thinking for themselves.

Rob in VA of VA 2:53PM March 17, 2009

The bonuses are part of contracts perviously negoitiated between the executive members and the company. Thus they were an agreement before the slide.
However, given the economic decline and the fact that AIG played a central role in the world economic downfall, one wonders how anyone could claim bonuses based on the performance of the comapny. The other avenue to go would be to let AIG go into bancrupcy thereby causing an inability to pay position. The net result should be the same. No bonuses.
Morally and ethically it is inconceivabe that any executive member at AIG would accept a bonus given their performance leading up to this mess.

Roger E Gosselin 2:43PM March 17, 2009