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Fallout from anger over AIG's bonuses is following Sen. Chris Dodd from Washington back home to Connecticut.

An alarmed industry tells Congress, White House that severe pay restrictions would punish many for the sins of a few and hurt broader economy.

Executives say legislation to severely tax bonuses may imperil the housing recovery program.

The House of Representatives is expected to vote Thursday on legislation to try to recoup bonuses paid to Wall Street executives with taxpayer money.

Democrats and Republicans tried to outdo one another in voicing indignation as the House debated a bill to punish A.I.G. executives who got big bonuses.

Wal-Mart Stores Inc is awarding approximately $2 billion to its U.S. hourly employees through financial incentives, including handing out $933.6 million in bonuses on Thursday, after the world's largest retailer gained market share amid a recession.

Fannie Mae is due to pay retention bonuses of as much $470,000 to $611,000 this year to some executives despite enormous losses. Freddie Mac also plans to pay such bonuses but hasn't yet provided details.

White House Press Secretary Robert Gibbs is not a lawyer, nor does he play one on TV. So when just about every question at Tuesday's afternoon briefing concerned bonuses at insurance giant AIG, Gibbs had a non-answer at the ready. "I'm not a contracts lawyer," he said at one point, later explaining that he was "not a contract lawyer," either. When asked whether the president could simply deny more money to AIG unless it scrapped bonuses, he repeated: "Again, I'd refer you to a contract lawyer, which I'm not one."

The Obama administration sought to reduce the bonuses, but the insurer, which received more than $170 billion in aid, said it was obligated to pay them.

Bank of America CEO Ken Lewis is about to come under serious scrutiny by Congress.