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Can Congress really pass a law to punish AIG for using the money for bonuses?
Does the constitution allow expo facto laws?
In a word no.
Ex Post Facto' laws are specifically prohibited by the US Constitution.
Explanation: Ex post facto Latin for "from a thing done afterward." Ex post facto is most typically used to refer to a law that applies retroactively, thereby criminalizing conduct that was legal when originally performed. Two clauses in the US Constitution prohibit ex post facto laws: Art 1, § 9 and Art. 1 § 10.
The cries of retribution that has swept across the land will soon subside when people realize laws can't be changed after the fact to get even or to right a wrong. The horse has run away. Now we build a barn with a strong lock?