On Saturday the news about AIG's bonuses was released and then on Sunday, Larry Summers was dispatched to the morning shows to try to explain why the administration was powerless to stop it. Well, we all know what's happened since: there's been a virtual revolt in the country where even lefties like Robert Reich aren't buying the administration's explanation. So, today, the administration knew it was time to bring out the big guns. In a speech about the administration's plan to help small businesses, the President took a moment to address AIG's intention to pay out bonuses to the very people who got AIG into the mess it's in (text via TPM):

But before I talk about the new steps we're taking to get credit flowing to small businesses across our country, I want to comment on the news about executive bonuses at AIG.

This is a corporation that finds itself in financial distress due to recklessness and greed.

Under these circumstances, it's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. How do they justify this outrage to the taxpayers who are keeping the company afloat?

In the last six months, AIG has received substantial sums from the US Treasury. I've asked Secretary Geithner to use that leverage and pursue every legal avenue to block these bonuses and make the American taxpayers whole.

I know he's working to resolve this matter with the new CEO, Edward Liddy, who came on board after the contracts that led to these bonuses were agreed to last year.

This isn't just a matter of dollars and cents. It's about our fundamental values.

All across the country, there are people who work hard and meet their responsibilities every day, without the benefit of government bailouts or multi-million dollar bonuses. And all they ask is that everyone, from Main Street to Wall Street to Washington, play by the same rules.

That is an ethic we must demand.

What this situation also underscores is the need for overall financial regulatory reform, so we don't find ourselves in this position again, and for some form of resolution mechanism in dealing with troubled financial institutions, so we have greater authority to protect the American taxpayer and our financial system in cases such as this. We will work with Congress to that end.

It's true that, as Elana Schoor points out, there isn't much new here. We've already been assured that the administration is pursuing all legal means to block the bonuses. But what's absent in Obama's remarks is any AIG apologia, any "we are a nation of laws" rhetoric like we got from Summers explaining why these contracts must be honored. He's very consciously taking the outraged POV of the American people; his message, as he told us during his not-State of the Union: "I get it."

Update [2009-3-16 15:7:30 by Todd Beeton]:Video via TPM:

Here's Obama economic advisor Austan Goolsbee, way better than Summers, saying "the President is not just going to let this stand and say 'oh well there's nothng we can do.'" Oh really? Let's see him do it.

And here's the President:

Update [2009-3-16 16:4:42 by Todd Beeton]:While this tough talk from the President is welcome, the management of this news and the lack of the exertion of any authority over a company that the government essentially owns, has been disappointing and frustrating. All told I'd give the administration a C on its handling of this so far. I know people probably think that's generous but I'll wait to see if they do show some teeth behind their newly tough language before failing them. What grade would you give them?