While Congress has been whipped up by a public furor over the AIG bonuses, the White House is taking a less emotional track: It is wary of the cry for special taxes to take back the bonuses, according to the Washington Post. It may be a draconian solution to a pressing problem, which has come about at the worst possible time for the Obama Administration.

In the run-up to the toxic asset plan announcement, there were several potential investors--and the administration needs private investors to make it work--who were balking. Some said outright that they would not participate unless there were not to be any restrictions on pay. Certainly, the flap has put the Treasury Secretary in an unflattering and harsh light.

For more:
- here's the Washington Post article

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