Nevadans calling for action to recoup AIG’s bonuses

WASHINGTON -- Nevada lawmakers joined the chorus of outrage over the bonuses paid to AIG executives.

With 93 other House members, Rep. Dina Titus, D-Nev., signed a letter urging Treasury Secretary Timothy Geithner to "stop coddling AIG" and urging the Justice Department to suspend the bonuses.

Rep. Shelley Berkley, D-Nev., co-sponsored a bill that would impose a steep tax on individuals who receive bonuses of more than $100,000 from companies receiving federal bailouts.

Berkley and Rep. Dean Heller, R-Nev., sit on the House Ways and Means Committee, which was charged by Democratic leaders with forming legislation to "recoup misspent public dollars" from companies that have received federal bailouts.

Sen. Harry Reid, D-Nev., said Democrats in the Senate will seek to seize the bonuses through a bill to be introduced today. It would subject the bonuses to taxes of more than 90 percent.

"AIG's attitude represents everything that's wrong with Wall Street," said Reid, the Senate majority leader. "Greed and perhaps even corruption."

Sen. John Ensign, R-Nev., said it was appropriate for Congress to seek return of the bonuses, but he said he did not know whether doing it through taxation was the right way.

Ensign rejected the argument that the bonuses are necessary to keep AIG employees who could unravel complex transactions and fix the company's problems.

Retention bonuses are unnecessary because Wall Street workers do not have many other job options right now, he said.

"Retention bonuses?" Ensign said. "Where else are they going to go right now? Anybody who has a job right now ought to be thankful they have a job."

Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@stephensmedia.com or 202-783-1760.