• 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]