The Obama administration is in trouble. Public anger over these AIG bonuses appear to be the final straw:
The Obama administration is increasingly concerned about a populist backlash against banks and Wall Street, worried that anger at financial institutions could also end up being directed at Congress and the White House and could complicate President Obama’s agenda.
As Greg Sargent points out this morning, the meme the administration is pushing that this outrage is flowing through from the Bush administration and problems that happened then isn’t cutting it either.
Also the whole notion that the administration’s “hands are tied” is a bunch of bullshit. It was easy to tell the automakers that they had to restructure their companies, including compensation, but those same concessions don’t/can’t carry over to Wall Street firms?
If the Obama administration wants to push their agenda through, they need to listen to the American people’s agenda and stop this madness. Congressional leaders are already upset and they will be hearing it more from their constituents, so that means less support for Obama in Congress.