BUSINESS BRIEFS
Democrats demand AIG return bonuses
Advertiser News Services
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WASHINGTON — Talking tougher by the hour, livid Democrats confronted beleaguered insurance giant AIG with an ultimatum yesterday: Give back $165 million in post-bailout bonuses or watch Congress tax it away with emergency legislation.
Republicans said the Democrats were hardly blameless, accusing them of standing by while the bonus deal was cemented and suggesting that Treasury Secretary Timothy Geithner could and should have done more. While the White House expressed confidence in Geithner, it was clearly placing the responsibility for how the matter was handled on his shoulders.
Geithner sent a letter yesterday to congressional leaders informing them that he was working with the Justice Department to determine whether any of the AIG payments could be recovered. He cited a provision in the recent economic stimulus law that gave him authority to review compensation to the highest-paid employees of companies that already have received federal assistance.
CONSTRUCTION OF NEW HOMES RISES
WASHINGTON — Housing construction posted a surprisingly large increase in February, bolstered by strength in all parts of the country except the West.While the surge in construction was far better than what economists had expected, experts said the rebound probably was temporary.
The Commerce Department reported yesterday that construction of new homes and apartments jumped 22.2 percent in February compared with January, pushing total activity to a seasonally adjusted annual rate of 583,000 units.
The housing downturn, rising foreclosures and a deepening U.S. recession have battered homebuilders and scared off many potential buyers.
MADOFF VICTIMS GRANTED TAX RELIEF
WASHINGTON — The Internal Revenue Service issued guidelines yesterday that will allow tax relief and refunds for some Bernard Madoff victims who were levied for investment earnings that turned out to be nonexistent.IRS Commissioner Douglas Shulman told Congress the new guidelines are for taxpayers who have suffered losses from Ponzi investment schemes such as the massive Madoff swindle.
He said the guidelines will apply to victims of all Ponzi schemes — scams in which early investors are paid returns from money put in by later investors. But given the scope of the Madoff scandal, the IRS wanted to establish an easy system for investors to recover taxes they paid on false income.
