The U.S. House of Representatives swiftly passed a bill on Thursday to recoup controversial bonuses paid to American International Group as Treasury Secretary Timothy Geithner tried to calm the furore by taking responsibility, Reuters reported.
In the face of public outrage at the fact that AIG paid $165 million (114 million pounds) in bonuses after receiving $180 billion in government aid, the House voted 328-93 to approve a 90 percent tax on bonuses for certain executives at companies that are getting taxpayer-financed help.
The No. 2 Republican in the Senate, Jon Kyl of Arizona, blocked an initial bid to approve a Senate version of the legislation that would put a 70 percent excise tax on bonuses for employees at companies that have received at least $100 million in bailout aid.
Kyl said more study was needed, putting into question when the Senate might again try to pass the legislation.
House Financial Services Committee Chairman Barney Frank said his panel will consider legislation on Tuesday to prohibit bonus payments by companies who have received government bailout funds, until investments are repaid in full. The full House of Representative was expected to consider the bill in the following week, the panel said.
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