By Cliff Montgomery – Mar. 25th, 2009
Senate Republicans appear set to effectively kill any reasonable attempt to reclaim the bonuses which”bailout” companies like insurance giant American International Group (AIG) are paying to their executivebosses.
This won’t stop them from complaining about the questionable bonuses of course – these lawmakers just won’tlift a finger to actually fix the problem.
AIG doled out $165 million of taxpayer “bailout” dollars last weekend to several top executives, and has shelledout similar bonuses this year. Americans of all stripes are rightly furious.
Top Democratic senators, being a rather weak-kneed bunch, have been trying to pass legislation that wouldrecoup most of those bonuses through taxation. It’s not as clear-cut as simply threatening to sue AIG for apossible misappropriation of public funds unless the execs gave back those bonuses with due haste, but itappeared to be something.
Regardless, that something apparently is something too much for GOP senators.
Senator Jon Kyl (R-AZ) is the minority whip who Thursday evening blocked efforts to bring up the tax bill in theSenate. The House had quickly passed its form of the legislation earlier that day–and nearly half of HouseRepublicans voted for the tax.
Kyl did his best to explain his inexplicable action.
“I don’t believe that Congress should rush to pass yet another piece of hastily crafted legislation in this verytoxic atmosphere, at least without understanding the facts and the potential unintended consequences,” Kylcrowed on the floor of the Senate.
These words seem odd coming from Senator Kyl, since modern Republican leadership normally does notfollow a “go-it-slow,” rational policy. For instance, the GOP couldn’t have moved more quickly or have beenmore irrational 8 years ago, when it gleefully repealed many of the laws which kept wealthy investors fromturning Wall Street into their private casino–at our expense.
The same is true regarding their actions on a host of other fiercely important matters, from the invasion of Iraqto the Anti-Patriot Act. Only now, when it’s time to hold a few wealthy members of society accountable forthievery of public funds, do they want think long and hard on the matter, and then…think again.
A close look at Senator Kyl’s wealthier supporters puts even more light on his particular stance.
It seems that the Arizona senator is especially well liked by Wall Street types. From 2003-2008– the mostrecent election cycle for senators–real estate investors were Kyl’s second most loyal donors. Securities andinvestment firms were fifth, according to Federal Election Commission data.
Among single donors, one of Kyl’s longtime friends has been AIG. The insurance giant has given the Arizonasenator over $24,000 during his years on Capitol Hill.
Another one of Kyl’s corporate friends has been Citigroup, Inc. The firm donated over $36,000 to Senator Kylfrom 2003-2008, states Federal Election Commission data.
Like AIG, it is one of the giant Wall Street firms which recently received billions of taxpayer dollars to remainafloat.
One of this financial giant’s subsidiaries is the brokerage firm Salomon Smith Barney, “which has been plaguedwith lawsuits and government investigations into its financing of bankrupt Enron and ailing WorldCom,” statesthe Center for Responsive Politics (CRP), a leading government watchdog group.
“In 1998, Citigroup’s lobbying helped repeal a federal law that prevented banks from getting into otherbusinesses,” continues CRP, “allowing the company to acquire an insurance firm and part of a package of laxregulations that has been blamed for the country’s economic collapse.”
Might these friendships have something to do with Senator Kyl’s slow trot on executive accountability? Perishthe thought.
