Is asking for bonuses paid back on bad business "draconian"?

Give me a break. This is pretty standard in the real world. Book bad or bogus business and you lose the commission or bonus. As much as it might pain the Wall Street apologists that's the way it works for everyone else outside of Wall Street. Senator Ron Wyden has every right to do this and it's annoying that this was not done before. Besides the completely incorrect acceptance of Wall Street paying a dime in bonuses while on life support, failing to ask for past bonuses to be returned is unthinkable, especially in light of the daily shocking news from the banks. Anyone in Congress that doesn't think the American public would support this is kidding themselves.

The Senate version of the economic stimulus legislation working its way through Congress contains a strict limit on employee bonuses paid by financial institutions that receive taxpayer funds.

Under an amendment sponsored by Ron Wyden (D-Ore.), Olympia Snowe (R-Maine) and Blanche Lincoln (D-Ark.) and accepted by voice vote last Friday, recipients of funds from the Troubled Asset Relief Program would have to redeem preferred shares they issue to the government to equal any bonus paid to employees in excess of $100,000, or pay 35% in tax on those amounts. The provision applies to any bonuses promised after January 1 of last year.

The Obama administration has indicated that it would attach tighter strings to federal assistance to financial institutions than the Bush administration did. The original terms of the TARP when created last October included limits on bonuses for top executives, but critics say the limits contain extensive loopholes.

But the Senate provision is “draconian” in that it is retroactive and applies to all employees, not just senior executives, Robert Willens, a tax and accounting expert in New York City, said in an interview with Financial Week.

Of course. So is this person saying it's OK to make money from bad business? Remind me again how the hell capitalism is supposed to work because right now, I think there's a severe disconnect and one of us are very, very wrong. The day we pay failures - enormous failures - for failing, we might as well throw in the towel and call it a day.

When average Americans are stuck footing the bill and wondering if they have a job tomorrow and living in poverty compared to Wall Street, they have every right to ask for that money back. Congress also has the full authority to demand that money which is keeping the overpaid gamblers in cozy offices.