Says he has instructed Geithner to “pursue every legal avenue” to stop the insurance giant execs from receiving bonuses.

“It’s hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay.”

More from his remarks Monday here.

Treasury boss will speak with AIG CEO, use the “leverage” of the $170 billion in bailout funds given to stop bonuses from going through.