Sorry, but your husband is not only handling this in TOTALLY the wrong way, but he is making it harder, not easier for your son to learn. First off, shaking your son or physically handling him in any way because he is 'frustrated' is abusive and not a good thing at all. Does your husband normally have such a bad temper? He needs to be patient and be the adult here.
Just what you describe- your son gets panicked, etc. tells me that he is being made to feel WORSE and more scared about something he is already not good at. Your husband seems to be thinking your son is doing this to be lazy or just to defy him, but at age 8 that probably is not true.
I have worked with many 'reluctant readers' for years and you need to get your son some assistance right away. At his age, he will ONLY become a proficient reader if he learns to ENJOY it. Your husband is teaching him to dread homework and hate reading. This is going to absolutely backfire, trust me.
1)Have your talked to your son's teachers or a librarian? Get him into a summer reading program at the library and let him choose books himself that HE likes and are at his reading level, even if it is lower than grade level- he needs to walk before he can run! Normally being bi-lingual does not put kids behind in reading. Get him evaluated at school and see if he has some other issue that is making this difficult for him.
2) Have a serious talk with your husband when your son is not present. Explain that although he means well, his attitude is making your son more afraid of failing because he doesn't want to let his parents down- but he may, for MANY reasons, not just the language issue, be having trouble reading and he can't improve that just because your husband is standing over him!
Compare the situation to your husband's work- if he was working on a difficult project he was already worried about, would he do it BETTER or WORSE if his boss was standing over him, watching and criticizing or worse yet, grabbing his shoulders and shaking him?? No one would work better under those circumstances!
Keep telling your husband you realize he means well- but that this approach is just not the recommended one.
3)Since you live in Chicago, I am going to tell you to come to our children's bookstore for some help!! I work at the Magic Tree Bookstore in Oak Park. It is on the corner of Lake St. and Oak Park Ave. If you can come and see us, PLEASE do!!! We have worked with hundreds of kids in your son's situation and can help you find some books to get him started.
Come in and ask for Rosie, who specializes in English and foreign language books. One thing that may help your son is for him to get a few books in BOTH languages- then you can see if the language issue is really the main problem. It may help his understanding if he can read a book in your second language- then try the same book in English. Rosie is also a children's librarian and will do a great job helping your son find some things that he will enjoy.
If you can't come to the store- go to your local library!! The children's librarian there will also be able to help you out. It may be that the language issue is not the only thing going on with your son, but the key to getting him to start reading better is getting him to LIKE it. Honestly, it does not matter if he is reading comic books or baseball or soccer books or mysteries or picture books! Don't worry if he picks things that seem like 'kiddie' books to you- he just needs to ENJOY them and get some confidence.
4) Last but not least- one of the BEST things you can do to get your son to enjoy reading is to READ OUT LOUD to him every night. He is not too old for that- in fact he is just the right age. I cannot stress how important and easy this is= before bed, every night, read a couple chapters to him.
Ask him to choose a book with you- maybe one he has been curious about, but knows he can't read himself? Or one that other kids his age are reading and he feels left out because he can't read it? Either way, let his interests guide you, along with some help from a librarian. Then just read to him- it will give you some quiet time and trust me, this WILL help improve his reading!!
You seriously need to make your husband see that his attitude is going to make your son afraid and resentful of reading and school work for years to come if this continues. It will only get harder in school- good luck! I know your son can get over this, but you all have to work together and at his age, you MUST make it fun for him!!