AIG Update: Vindication [UPDATED]

Last week, I noted that the the punitive-tax bill targeting bonus-receiving AIG execs was "clearly unconstitutional." At least one commenter took exception to that; at the time, Rick had an ally in left-leaning Harvard (Constitutional) Law Professor Lawrence Tribe. Professor Tribe opined that "the goal is not to punish corporate executives generally, but is simply to ensure the appropriate use of government funds," and thus was not a Bill of Attainder.

But that was then, and this is now:

"Harvard professor Laurence Tribe, who advised Obama during the campaign ... says he’s leaning towards seeing the new House bill to tax back all the AIG bonuses as unconstitutional."

Score one for IB (et al).

I also made the point that were such a bill to become law, it would be challenging (to put it mildly) to find competent executives to help right the listing ship of industry; after all, "who wants to take that job for free?"

Lo and behold, no less than the administration itself "has concluded that it needs the private sector to play a central role in fixing the economy. So over the weekend, the White House worked to tone down its Wall Street bashing and to win support from top bankers for the bailout plan."

Score 2 for the good guys.

Okay, enough with the "atta boy's." Back to work.

UPDATE - And thus it begins: I suspect that this is merely the first in what will be a litany of (now former) AIG execs who have "had enough:"

"It is with deep regret that I submit my notice of resignation from A.I.G. Financial Products...Most of those responsible [for the CDS's at the root of the meltdown] have left the company and have conspicuously escaped the public outrage...Many of the employees have, in the past six months, turned down job offers from more stable employers, based on A.I.G.’s assurances that the contracts would be honored."

Read the whole thing.

And remember it when the gummint has a hard time finding competent folks to rebuild the devastated companies; you own more than one.