White House on Defensive as Schumer Warns AIG

The AIG fury grows. The White House today found itself defending Treasury chief Tim Geithner's handling of the bonus mess as congressional anger rose. Under siege by reporters about why the Obama administration didn't act sooner, spokesman Robert Gibbs said the president retains full confidence in Geithner, the Los Angeles Times reports. Meanwhile, Chuck Schumer said at least nine senators were writing a letter to AIG chief Edward Liddy warning him to recover the money.

"If Mr. Liddy does nothing, we will act and we will take this money back and return it to its rightful owners, the taxpayers," Schumer said. "So for those of you who are getting these bonuses, be forewarned—you will not be getting to keep them." His threat echoed that of various members of the House, who introduced a measure to impose a tax on the bonuses.
(More AIG stories.)