Americans across the nation are voicing their anger at Wall Street, in particular against AIG as President Obama is waging a battle for the support of the nation to make changes in the way Wall Street executives conduct themselves.
The most outrageous situation facing Americans is that "the reality is that no matter what we do now, tens of trillions of dollars in wealth have been lost. All that's left is simply an elaborate exercise in settling up the accounts."
What angers Americans the most is "that the hundreds of billion dollars of taxpayer funds that have been put at risk to keep AIG and Citi from failing and taking the whole financial system down with them."
The only useful purpose all of this public anger is having is that it is helping to let off some collective pessure that has building for years on the way Wal Street has been conducting it's business practices. It also aids in the coalesce of political pressure for reform of the political checks and balances that keep Wall Streters in check. And with the renewed call for stricter regulations comes the hope that in the future Wall Street finaciers will be forced to "think long and hard the next time they get the urge to take excessive risks with other people's money."
One of the most tangible forms of protest being waged by angry American took shape on Capitol Hill today when House members decisively authorized "a near total tax on bonuses paid this year to employees of the American International Group and other firms that have accepted large amounts of federal bailout funds, rattling Wall Street as lawmakers rushed to respond to populist anger."P
Angry Democrats and Republicans authorized a nearly 90% tax "on bonuses for traders, executives and bankers earning more than $250,000."
The hast to restrain the bonuses by Housemembers who have waged vigorous battles over the limitation of compensation for Wall Street executives, demonstrates the high degree of tension being brought to bear by the bailout. On the Senate side, lawmakers are expected to consider a tax on executive bonuses that will differ with the measure passed by the House, which will effect final pasage of the bill.
President Obama urged congressional members to come up with a “final product that will serve as a strong signal to the executives who run these firms that such compensation will not be tolerated.”
In a cautious and measured response, President Obama Mr. Obama said he believed legislators were “responding, I think, to everybody’s anger” but that the best way to handle the situation was “to make sure you’ve closed the door before the horse gets out of the barn.”P
Members of Congress voiced their displeasure in terse statements: “As A.I.G.’s recent actions remind us, it is unconscionable that companies dependent upon the largess of the federal government for their very existence should in turn pay irresponsibly exorbitant bonuses to the rapscallions partially responsible for the current recession,” Representative John D. Dingell, Democrat of Michigan, said.
Wall Street executives called the legislative actions reckless and ill-conceived. And many bank executives threatened to pull out from efforts to right the nation's economy.
Even senior Republican leaders backed the stringent measures: “It is an extreme use of the tax code to correct an extreme and excessive wrong done to the American taxpayer,” said Representative Dave Camp of Michigan, senior Republican on the tax-writing Ways and Means Committee, who backed the measure despite reservations.
"But experts on constitutional and tax law said it was likely the House bill could pass muster. Numerous court rulings have upheld retroactive tax provisions, particularly over short periods. The House bill applies back only to Jan. 1, 2009. The measure is also strengthened by the fact that it does not apply to just one company or group of individuals, and does not take aim only at past bonuses but also bonuses to be paid in the future, experts said.
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