With the public outrage around AIG bonuses escalating to the point where executives received death threats, it's no surprise that the proposal for a 90% tax rate at TARP banks in the US was overwhelmingly approved by politicians seeking much-needed brownie points. However, they could end up being even more punitive for those on Wall Street, as CNN points out. After state and local (NY) taxes are taken into consideration, the tax bill could end up being bigger than the bonus.
According to the president of the New York State Society of Certified Public Accountants, it's not tax policy: "This is bankruptcy and financial policy".
Besides, according to FT Alphaville, this 'bonus rage' is a convenient distraction from the real issues politicians should be focusing on. Meanwhile, House Financial Services Committee chairman Barney Frank, wants to block bonuses entirely at bailed out banks until they pay the state back.
The 12 firms that would be hit by 90% tax (Business Insider)
Investment banking chief travels to London to stem Merrill exodus (CNBC)
BofA investment decisions may have contributed to massive Merrill loss (Financial Times)
Citi and UBS stars quitting to go it alone? (Times)
UK will not cap bankers' pay (Telegraph)
800 more US banks to fail? (Dealbook)
Citi's streamlining technology chief leaves after eight months (Financial News)
Get new banking gig - train as a bouncer (Market Watch)
Picket lines at Goldman HQ (Business Insider)
Pru appoints first black FTSE 100 chief (Financial Times)
Second wave of the crisis is coming (The Pragmatic Capitalist)
MPC recruits Morgan Stanley optimist to replace maverick economist (Guardian)
Economist in rosy outlook shock (Times)
Hornby loses 720k golden goodbye from Lloyds TSB (Telegraph)
The UK's shame captured by Google Street View