Romer Calls Big Bonuses to Bankers 'Offensive'

A White House economic adviser says big year-end bonuses for bailed-out financial institutions would be "ridiculous" and "offensive."

Christina Romer says the Bush administration's $700 billion bailout was necessary to avoid a collapse of the financial system. Now that banks are returning to profitability as a result of government help, Romer says that paying out billions of dollars in bonuses "does seem really ridiculous."

Romer, who heads the president's Council of Economic Advisers, say that kind of big payout "is going to offend the American people. It offends me."

Romer spoke Sunday on CNN's "State of the Union."