Administration Takes on Bonuses

The bonus backlash is official. For the second day, the Obama administration has attacked AIG, the insurance giant propped up with government bailout funds, for issuing $165 million in bonuses to executives who oversaw the company's crisis. At the White House this afternoon, Obama called it an "outrage" and promised to "pursue every legal avenue" to rescind the payouts. "This is a corporation that finds itself in financial distress due to recklessness and greed," he said. "This isn't just a matter of dollars and cents. It's about our fundamental values." Obama's remarks, coming on the heels of Larry Summers' comment that AIG's actions are "most outrageous," present the president with an opportunity to side with Main Street.