Money For Nothing.

From Sam Stein on Huffington Post:

Senator Ron Wyden said on Tuesday that the furor surrounding AIG's bonus payments could have been avoided had the Obama White House and members of Congress simply backed legislation that he and Sen. Olympia Snowe introduced more than a month ago.

In an interview with the Huffington Post, the Oregon Democrat noted that during the crafting of the stimulus package, he and his Republican colleague from Maine introduced a provision that would have forced bailout recipients to cap their bonuses at $100,000. Any amount paid above that would have been taxed at 35 percent. The language made it through the Senate, but during conference committee with the House, it was inexplicably removed.

"The reality is, had that legislation been passed it would have been a very strong disincentive to anybody paying out bonuses in the future," said Wyden. "Earlier, the President had denounced those bonuses that came at the end of the year. And when Senator Snowe and I said it is not enough for those in elected office to say it was wrong, that they have got to have a plan to have them pay it back, we were able to get legislation through the United States Senate. Not a single United States Senator was willing in broad daylight to stand up and oppose our bipartisan amendment... but it died in conference."

"I will say that I talked to most of the key members of the Obama team and I was not able to convince them of the value of the amendment that I authored with Senator Snowe," he recalled. "I think it is unfortunate. I think it was an opportunity to send a careful, well-targeted message, which would have communicated how strongly the administration felt about blocking these excessive bonuses. I wasn't able to convince them."

That being said, he and Snowe have a remedy: they are reintroducing their stimulus provision as a stand-alone bill, only they are getting even stricter with bailed-out institutions. Instead of capping bonuses at $100,000, they are lowering the level to $25,000. The law would cover all recipients of taxpayer TARP money, as well as those firms -- like AIG -- which have received money outside of the Troubled Asset Relief Program. And it would deal with bonuses issued in 2008. If a company refuses to give up the bonuses, the amount that exceeded $25,000 would be taxed at 35 percent.

"They are either going to have to pay it back or they are going to be taxed," said the Senator. "And I think that is going to be pretty hard when they are already getting taxpayer money."

It's not enough for President Obama to denounce pigs at the trough after they are already gorging themselves. Why were they allowed anywhere near the trough to begin with?  

I've lost track of which yammering pundits defended AIG's bonuses as fair and equitable for such companies. I work on commission, but if there is no profit generated, I don't make a dime. As with millions of others, this economic meltdown has been murder for people like me. Commissions in my industry are inextricably tied to the state of world credit markets, import/export volumes, U.S. inventory levels, product sales and are paid based on net profits.  

I guess I should have considered working for AIG, where compensation seems to be based on net loss.