There is much ire, much fury. AIG’s handling of the government bailout money is getting on the public’s nerves and the Obama Administration is listening. Lawrence Summers in his Sunday morning interview on ABC used such words as “outrageous” to describe AIG’s behavior. This is following the Federal Reserve Chairman’s admission that AIG made him angry when he was testifying before Congress two weeks ago and his assertion again in a “60 minutes” interview that AIG made “terrible bets” in its past operations. Timothy Geithner was reportedly “very upset” about AIG’s intention to pay out $450 million in bonuses to its executives and mangers government lifeline notwithstanding. Alas, the bonuses will be paid: AIG is contractually obligated, and as Lawrence Summers put is “we are a nation of laws.” But, the government can make it very, very unpleasant for AIG. Case in point, the insurer was forced to release the list of its trading partners on Sunday and exactly how much in payment was transferred to each one of them after AIG had received government funds. Round two will be on Wednesday, when the House Financial Services Committee gets a hold of AIG executives for a hearing. Meanwhile figures released today by the Fed showed that industrial production in the U.S. fell 11% in a year from February 2008 (February’s drop alone was 1.4%). The amount of U.S. factory capacity use fell to 70.9 percent. Chinese Premier’s declaration last Friday that he was worried about China’s investments in the U.S. is still getting some play. The Wall Street Journal today noted that this might have been a “shot across the bow” by the PRC’s government in preparation for the G-20 summit, where China might be asked for certain commitments in order to pull the global economy out of the slump. The markets are doing well today on the good news from the banking sector, as the Citigroup, Bank of America, Barclys and others reported that earnings have been rising since the beginning of the year. The Dow was up 116 points by mid-trading.