Congress Will Try To Retrieve Some AIG Money

WASHINGTON (AP) -Senate Democratic Leader Harry Reid says Congress will move to force AIG executives to pay back at least some of the $165 million in bonuses they’ve recently received.

The payouts came after American International Group got billions in federal rescue funds.

It’s unclear how Reid’s request could happen. But Senate Finance Committee Chairman Max Baucus suggests taxing the bonus money. He says one question would be “what is the highest excise tax” that would stand up in court?

The AIG controversy isn’t the only time the issue has come up. Earlier this month, a New Jersey congressman asked the Treasury secretary to look into bonuses reportedly planned by Morgan Stanley and Citigroup’s Smith Barney.

The Obama administration has already said it’s looking into placing limits on how future government bailout dollars can be used.