The House is taking another, albeit weaker, stab at trying to keep bailed-out financial institutions from paying their employees hefty bonuses after lawmakers had second thoughts about their vote two weeks ago to tax the bonuses away.
A new bill, which passed 247-171 on Wednesday, would allow the bonuses if the Treasury Department and financial regulators determine they are not "unreasonable or excessive." . . .
Under the bill, Treasury Secretary Timothy Geithner and financial regulators would set standards for employee compensation at companies that accept bailout money, taking into account an employee's performance, as well as the stability of a financial institution.
Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, said the bill would apply only to institutions that receive money through the government's $700 billion Troubled Asset Relief Program and would not automatically extend to others that participate in other TARP-related programs, including Obama's new public-private investment program.
The House Tries Again on AIG Bonuses: