• Congress's efforts to recoup bonuses at AIG appear to have cooled over the past few days. And President Obama will make an effort to repair relations with Wall Street when he sits down with a dozen bank CEOs on Friday. [WSJ]
• More on Tim Geithner's proposal yesterday that the government be given the authority to take control of troubled financial institutions. [NYT]
• HSBC is planning to lay off 1,200 people in the UK. [DB]
• Hedge funders may see pay drop by as much as 25 percent this year. [BN]
• A Steve Rattner-less Quadrangle Group has decided to temporarily suspend efforts to raise a third private equity fund. [peHUB]
• More big names have decided to leave Merrill Lynch. [FT, WSJ]
• AIG says it sold two of its jets and has cancelled delivery of two more. [ABC]
• An employee with AIG shares his resignation letter: He says he's been "betrayed by AIG" and "unfairly persecuted by elected officials." [NYT]

A decade ago, Fortune pegged CNET founder Halsey Minor's net worth at $354 million. Today he's fending off lawsuits seeking $60 million. Has he run out of money?

When it was revealed in late January that John Thain spent $1.2 million renovating his office at Merrill Lynch in early 2008—back before the global financial meltdown was truly upon us—people were up in arms. Such a stupid move! So tone deaf! When it was reported yesterday that Citigroup CEO Vikram Pandit was getting his office redecorated, like, now? Well, it's good thing the news broke when everyone was consumed with the mess over at AIG, huh?

• Yesterday the House approved a 90% tax on bonuses paid to execs at certain firms that received government aid. Now some lawmakers are talking about banning all bonus payments at bailed-out firms. [Reuters]
• It's unclear if the 90% tax will hold up in court. It's also possible it will do more harm than good and ultimately "wreck what's left of our economy." [BI]
• Andrew Cuomo says AIG has provided him with a list of employees who earned bonuses, but he won't release the names until the security situation has been sorted out, which is good news since it's getting a little rough out there what with all the death threats and protests. [AP, NYT, Reuters]
• Just who knew about the AIG bonuses—and when they knew it—is being closely scrutinized, although Treasury Secretary Tim Geithner says he is prepared to accept full responsibility. [NYT, CNN]

• Andrew Cuomo has won the battle to force Bank of America to turn over the names of the 200 Merrill employees who earned the largest bonuses right before the firm was acquired. He says he'll release the info today. [CNN, NYT]
• As you can probably imagine, it's been "the worst week in a string of bad weeks" for Treasury Secretary Tim Geithner. [NYT]
• Of course, it's also been a pretty lousy few days for AIG chief Ed Liddy, who walked into this big mess when he took the top job last September. [NYT]
• A record number of hedge funds were forced to close up shop last year: About 1,471 hedge funds were liquidated in 2008. [NYP, DB]
• The Fed plans to buy $300 billion of long-term Treasuries and hundreds of billions of dollars more in mortgage-backed securities. [BN, WSJ]
• JPMorgan reports the bank's CEO, Jamie Dimon, earned about $19.7 million in total compensation for 2008. And how did you do last year? [Reuters]
• Citigroup has canceled its order to buy three new jets. [Dealbreaker]

• Is AIG officially the most despised company in America? Following the disclosure over the weekend that execs planned to go ahead with $165 million in bonuses to top execs comes word that a good deal of the billions in bailout money it received went to banks like Goldman Sachs ($12.9 billion), Merrill Lynch ($6.8 billion), and Bank of America ($5.2 billion). [BN, NYT, WSJ]
• Larry Summers: "There are a lot of terrible things that have happened in the last 18 months, but what's happened at AIG is the most outrageous." [BN]
• UBS plans to cut another 5,000 jobs. [Reuters]

• Bernie Madoff will appear in court this morning to plead guilty to 11 counts. Then it wil be up to the judge to decide if he gets locked up immediately or is allowed him to remain free on bail pending sentencing. [DB]
• Meanwhile, the investigation into Madoff's Ponzi scheme is now focusing on the accounting firms that may have helped him carry out the scheme. [NYT]
• Base salaries on Wall Street may double as bonuses drop. [BN]
• Andrew Cuomo says Merrill Lynch misled Congress over the timing of its plans to award billions of dollars in bonuses last December. [NYT, WSJ]
• BofA is putting a private bank it inherited from Merrill up for sale. [Reuters]
• Texas billionaire Allen Stanford took the Fifth yesterday. [AP]
• Carl Icahn has abandoned his bid to take over Lionsgate. [BN]
• GE has lost its triple-A credit rating from Standard and Poor's. [DB]
• Foreclosure filings in the U.S. jumped 30% in February. [BN]

Remember those Merrill Lynch junkets to the Ritz-Carlton in Orlando, which the Orlando-Sentinel first revealed last month and which we reported on again last week? Yea, well, it looks like Merrill is now in a bit of trouble. The Office of the Special Inspector General for the Troubled Asset Relief Program has confirmed that it is now looking into whether or the trips violated the law. [Orlando-Sentinel via BI]

• It's expected to be a rough week ahead for financial markets. [Reuters, WSJ]
• The world economy is on track to post its worst performance since the Great Depression, according to a report by the World Bank. [CNN]
• The financial crisis seems to be "getting ahead" of Treasury Secretary Timothy Geithner, as if you weren't aware of that already. [NYT]
• The big beneficiaries of the AIG bailout: Goldman Sachs, Deutsche Bank, Merrill Lynch, and a handful of other banks both foreign and domestic. [WSJ]
• After canceling a trip to reward its top brokers, Citigroup gave out $3.5 million worth of gift cards to 2,000 people as a consolation prize. [NYP]
• Credit markets appear to be tightening up once again. [WSJ]
• JP Morgan and Goldman Sachs advised on Merck's $41 billion acquisition of Schering-Plough, which was announced this morning. [DB]
• Expect to see fewer foreign bankers living it up in NYC beginning this summer: Bank of America is withdrawing job offers made to foreign MBA students. [FT]

• The unemployment rate jumped to 8.1% last month, the highest it's been since December 1983 and above expectations for an 8% rate. [WSJ, NYT, BN]
• A "trading irregularity" at Merrill may have cost the firm hundreds of millions of dollars. Naturally, no one seemed to notice any of this until after the bank was acquired by BofA and Merrill handed out record bonuses. [BN, DB]
• Wells Fargo has slashed its quarterly dividend to a nickel a share. [WSJ]
• Citigroup may sell its stake in Japan's second-largest online broker. [DB]
• Would you like to invest in the bailout? You may get your chance. [WaPo]
• Did you lose your finance job? How about a job at Cantor Fitzgerald? [DB]

• Andrew Cuomo has issued subpoenas to several of the Merrill Lynch employees who made it on to the highest-paid list for 2008. [WSJ, DB]
• Merrill is now suing Deutsche Bank for "raiding" several top bankers. [BN]
• More Merrill news: Two ex-CEOs say they were victims of Madoff. [Reuters]
• GE seems to be in some serious trouble thanks to losses at GE Capital; shares of the company are at their lowest point since '91. [WSJ, BN, DB]
• UBS execs on Capitol Hill said the bank has no plans to give up the names of clients behind the 52,000 accounts connected to illegal tax shelters. [NYT]
• The good news: The number of new jobless claims dropped last week. The not-so-good news: Worker productivity is down. [NYT, BN]

You'd think Merrill Lynch executives would have learned their lesson by now. Just two weeks after getting chastised in the press for sending employees down to the Ritz-Carlton in Orlando for a "training event"—and despite all the negative PR the firm has sustained in recent weeks, including revelations about corporate pay just today—a big group of Merrill employees are now resting comfortably by the pool. Again. A tipster informed us that Merrill was conducting yet another warm-weather event at the fancy Orlando hotel today. We called the hotel, asked for the front desk, and then requested to be connected to the conference room where the Merrill Lynch conference was taking place. "Global Wealth Management," said the kindly woman who answered the phone before confirming to us that a Merrill event was, in fact, taking place at the hotel. (Alas, she wouldn't say how many Merrill employees were on hand for the conference, or if any taxpayer-funded golf events were on the agenda today.) But we're guessing Andrew Cuomo will be terribly disappointed to hear he wasn't invited.

• Merrill Lynch's top 10 earners in 2008—a list that Andrew Cuomo will be interested to take a look at—is out. Each made more than $10 million in cash and stock in 2008 as the bank racked up losses of $27.6 billion. [WSJ]
• The private sector lost nearly 700,000 jobs in February. [CNN]
• A UBS exec will address the Swiss bank scandal on Capitol Hill today. [NYT]
• Ben Bernanke yesterday: "If there is a single episode in this entire 18 months that has made me more angry, I can't think of one other than AIG." [BN]
• Bill Ackman's hedge fund dropped in February, Ken Griffin gained. [BN, NYP]
• More than 8.3 million mortgages are underwater, according to a report. [BN]
• Bernie Madoff has agreed to give up rights to his investment firm and company art collection. A hearing scheduled for today to look into conflicts of interest on the part of his lawyer, Ira Sorkin, has been postponed. [AP]

• The Treasury Department announced a plan to save Citigroup from near-certain doom. The government will take a 36 percent stake in the company, three-quarters of the bank's shareholders will be wiped out, and the board will be overhauled. Vikram Pandit? He keeps his job. [WSJ, BN, NYT]
• New GDP figures indicate "the U.S. recession deepened a lot more in late 2008 than first reported." The figures haven't been this bad since '82. [WSJ]
• Stocks tumbled this morning on the Citigroup and GDP news. [BN]
• Andrew Cuomo has subpoenaed Bank of America seeking the names of the Merrill execs who received $3.6 billion in bonuses. This comes after BofA CEO Ken Lewis failed to provide the details during his deposition yesterday. [DB]
• A "mutiny is brewing" within UBS's investment banking unit following the ouster of the bank's CEO, Marcel Rohner. [NYP]
• Blackstone reported a fourth-quarter loss of $827.1 million. [BN]
• Bernie Madoff moved $164 million from London to New York in the weeks before he was busted, according to new court documents. [NYP]
• Scammer Sam Israel has moved from a prison hospital back to prison. [AP]

• Citi chief Vikram Pandit is still working out the details of a rescue package that would turn over as much as 40% of the bank to the federal government. He'd really love to hang on to his job as part of the deal, though. [WSJ]
• In a last-ditch effort to raise cash, Citigroup is looking to sell off both its Japanese investment bank and brokerage. [Reuters]
• John Thain "sneaked in a side door" to answer Andrew Cuomo's questions for a second time on Tuesday, and provide more detail on the billions in bonuses Merrill Lynch handed out just before the firm was acquired by BofA. [NYDN]
• AIG is now facing two "distasteful" options: sell "prized assets to competitors or hand over a big part of its business to the federal government." [NYT]
• Connecticut is planning legislation to regulate the hedge fund industry. [DB]
• You can thank Ben Bernacke for the Dow's rally yesterday. [NYT]
• Existing-home sales tumbled to a nearly 12-year low in January, and prices took a double-digit drop. [WSJ]

• As part of the rescue plan currently under discussion in Washington, the government would end up with 40 percent of Citigroup, which isn't quite the same as nationalizing it, but is pretty darn close. [NYT]
• JPMorgan Chase cut its dividend to a nickel yesterday. [AP]
• John Thain spent six hours answering Andrew Cuomo's questions last week. But he'll make a return visit this week now that a judge has ruled Thain has to provide more detail on Merrill's controversial bonus payouts. [Reuters]
• AIG needs more government money. Feel free to laugh or cry about this. [DB]
• UBS may end up going to court as it tries to fight an order to disclose the names of its American clients suspected of offshore tax evasion. [NYT]
• Allen Stanford had ties to Joe Biden's brother and son, apparently. [WSJ]
• A bankrupt Lehman Brothers is spinning off its venture capital arm. [WSJ]
• Home prices in 20 U.S. cities declined an average of 18.5% in December. [BN]
• Federal chairman Ben Bernanke says the recession should end this year and 2010 "will be a year of recovery," if the banking system's stabilized. Reassuring words, provided you still believe anything Bernanke has to say. [WSJ]

The Orlando Sentinel reports that as late as last week, Merrill Lynch was still sending employees down to the Ritz-Carlton in Orlando, supposedly to take part in "training events." We're going to go ahead and assume this news won't win Bank of America CEO Ken Lewis any points with Andrew Cuomo, who's already investigating the $4 billion in bonuses paid to Merrill employees just days before completing its sale to BofA. [Orlando Sentinel via Clusterstock]

• Bank of America chief Ken Lewis has been subpoenaed by Attorney General Andrew Cuomo over bonuses and losses at Merrill Lynch. [WSJ, Reuters]
• Citigroup is raising more cash by selling off more assets. [WSJ, DB]
• More on the efforts to compel UBS to divulge the identities of 52,000 Americans suspected of using offshore accounts to dodge taxes. [NYT]
• Jon Winkelried may have left Goldman Sachs because he realized he wasn't in line to take over for Lloyd Blankfein as CEO. [Clusterstock]
• There's evidence that the credit markets are thawing a bit. [BN]
• The cost of living rose in January for the first time in six months. [BN]

• After their CEOs took a pounding yesterday, it's possible that banks like JP Morgan and Morgan Stanley would just as soon give the bailout money back rather than have to battle legislators at every turn. [BN]
• More on yesterday's Wall Street-Washington showdown. [WSJ]
• Nearly 700 people made $1 million or more at Merrill in 2008. [DB, WSJ]
• Stocks have been falling over concern about rising unemployment numbers and fear that the stimulus plan just won't be enough to right the ship. [BN]
• Tim Geithner is responding to critics over his revised bailout plan. [NYT]
• Yet another large investment firm is now under investigation. [BN]
• A Morgan Stanley exec in China is under investigation by the SEC. [DB]
• In slightly better news, retail sales are up slightly. [BN]

• Eight bank CEOs will appear in front of the House this morning to defend their use of billions in bailout money. Expect serious fireworks. [Reuters, BN, WSJ]
• Four top execs at Merrill Lynch took home $121 million in bonuses just before the firm was sold to Bank of America. [WSJ, BN, NYDN]
• More on the lukewarm reception to Tim Geithner yesterday. [NYT, BN]
• Credit Suisse reported a fourth-quarter loss of $5.2 billion. [BN]
• Both Goldman and Morgan Stanley have suggested that they want to give the government back the billions they took in bailout funds. [NYT]
• RBS is cutting 2,300 jobs. [Reuters]