What a difference a week makes. One week ago, the U.S. House was in a lather over those controversial bonuses at AIG. Today, all of that will be on the back burner as the Treasury Secretary returns to Capitol Hill.
Instead of answering questions about AIG bonuses, Secretary Timothy Geithner will focus on new plans to expand the powers of the Treasury Department, to be able to seize major financial companies - that aren't banks or savings and loans - if they are in danger of economic collapse.
There have been lots of calls in recent months for the feds to put AIG into a government receivership, just as the FDIC can do with banks and S&L's that are failing.
The problem is that the federal government doesn't have that power.
The Federal Reserve - under a 1932 law - does have the ability to send out money and aid, but not to take over the company.
The FDIC can seize banks and S&L's and then sell of their assets as its done with a number of institutions this year.
But when it comes to companies like AIG, or Bear Stearns and others, there weren't many choices for the government.
"We came into this crisis without the authority and the tools necessary to contain the damage to the U.S. economy," Geithner said earlier in the week about the proposal.
Also part of this plan is another set of regulatory eyes to watch over a company like AIG, which doesn't fall conveniently into the current boundaries of federal oversight.
"Our financial system permitted a scale of risk taking that caused great damage to the lives of many Americans," Geithner added.
So far, the reaction has been muted among Democrats and outright hostile from many Republicans, who say this is nothing but a power grab by the Obama Administration.
"This is an unprecedented grab of power, and before that occurs, there ought to be a real debate about whether we should give that authority to the Treasury Secretary," said House GOP Leader John Boehner.
It's all part of the battle over financial reforms that both sides agree need to be made in the wake of this economic crisis.
But I would bet those reforms won't be easily - or quickly - adapted.
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