Diary

Why Are Democrats Protecting AIG?

A friend informs me that all but 8 House Democrats just voted against a measure to require the Obama administration to do everything legally possible to compel AIG to return to the taxpayers the controversial bonuses approved by Secretary Geithner. The bill is described here by its sponsor, Congressman Paulsen:

This is the text of the bill:

Section 1: The Secretary of the Treasury shall, notwithstanding any other provision of law, implement a plan within the next two weeks to recoup or stay the payment of AIG bonuses.

Section 2: No additional funds may be provided to AIG until the bonuses are returned.

Section 3: Any future bonus payments, of any kind, by TARP fund recipients who have not within two weeks of enactment of the bill repaid the government in full, must be approved in advance by Treasury.

Section 4: Any future contractual obligations to make bonus payments of any kind entered into by TARP fund recipients who have not within two weeks of enactment of the bill repaid the government in full must be approved in advance by Treasury.

House GOP Whip Cantor has a list of the Democrats who voted to protect AIG here. Why would they block a bill that requires the Treasury to do precisely what they claim to want?