[Note: updated on 8.6.2010]
What does clawback mean?
Clawback refers to previously given monies or benefits that are taken back due to specially arising circumstances.
What’s the significance?
The Obama administration and members of Congress are currently discussing tax clawbacks designed to recoup the AIG bonuses.
Who’s talking about it?
Mother Jones blogger Kevin Drum is unimpressed by the argument that clawbacks in the AIG case would violate the sanctity of contracts, but wonders about the legality and fairness…Steve Randy Waldman of Interfluidity.com writes that the benefits of broad, well-crafted tax clawbacks could exceed their costs, but warns that an AIG one-off recovering less than half a billion dollars is relatively insignificant...Christopher Beam of Slate.com explore the legal concept of "unjust enrichment" as a possible grounding for AIG clawbacks...Lawmakers are clawing back Wall Street bonuses and money made by Madoff investors who got out in time...FinReg sets new rules about clawback policies and disclosure.