The battle over bonuses for AIG employees will roll on today in the Congress, as the government appointed CEO of the company begins two days of testimony on Capitol Hill.
The appearances by Edward Liddy would have been somewhat newsworthy anyhow, but with the explosive news about $165 million in bonuses that broke over the weekend, you can be sure there will be some interesting moments in this hearing.
Yesterday, Congress was awash in lawmakers trying to out do each other in the quest to grab some attention and grab back the bonus dollars.
Democrats floated a series of different plans which focused on the idea of taxing the bonuses.
"We will take this money back by taxing virtually all of it," said Sen. Charles Schumer (D-NY.)
One plan had an effective tax rate of 91%. Another plan - which would apply to bonus money paid out by any company getting federal bailout dollars - would tax 100% of any amount of $100,000.
That's sure to make a certain person's blood boil by the name of Mr. N. Boortz.
Meanwhile, down at the White House, they were playing defense. Pesky reporters kept asking for a timeline of when the President was told about the bonuses and what he was told.
Spokesman Robert Gibbs did his best to keep the press at bay, as Republicans started pointing the finger of blame down at the White House for not doing enough to block the bonuses.
GOP lawmakers demanded an official inquiry into what the Administration knew when and what was done on the bonus issue.
Last night, the White House finally gave out some information, saying that the President was told last Thursday by Secretary Geithner of the bonus troubles.
Let's just say this one has the prospect of still getting sticky for the White House, especially if the AIG chief today starts detailing his contacts with the Treasury Department.
"It is time for the Administration to provide Congress and American taxpayers an exit strategy that will get the federal government out of the private sector and out of the bailout business," said House GOP Leader John Boehner.
"Exit strategy" sounds like a pretty potent political term right now.
It also serves as a reminder that AIG is now officially an issue that's owned by the Obama Administration.
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