WASHINGTON ( CNN ) -- With outrage mounting over AIG 's $ 165 million in bonuses to executives , the president 's chief economic adviser offered a new line of defense for the White House in an exclusive interview with CNN . Larry Summers said an AIG meltdown was too risky for the economy to push too hard on executive bonuses . Larry Summers suggested that if Treasury Secretary Timothy Geithner had pushed the insurance giant too hard on the bonuses , AIG could have collapsed just like Lehman Brothers and sparked an even bigger crisis . `` Secretary Geithner has used all the legal authorities that are open to him to contain and limit the payment of bonuses , '' said Summers , chairman of the National Economic Council . `` What he did not do , and what would have been irresponsible to do , as outrageous as these payments are , would have been to put at risk the stability of the financial system . `` To have courted the kind of disaster that followed the decision to let Lehman Brothers simply collapse might have felt good briefly , but it would have touched the lives of a huge number of Americans who would have unnecessarily become unemployed or seen destruction of their lifetime savings . '' The collapse of the 158-year-old investment bank in September turned the U.S. crisis , based on the subprime loan debacle , into a global one , leading to credit freezes and plummeting markets nearly everywhere . Summers said Geithner was notified about the AIG bonuses last week . The secretary tried to stop them , Summers said , but ran up against a legal contract . `` Secretary Geithner courageously has gone after these bonuses and will continue to go after these bonuses in a very aggressive way , but we ca n't suspend the rule of law and we ca n't put the whole economy at risk , '' said Summers . Asked whether AIG could get more bailout funds down the road , Summers suggested the door is open to more taxpayer money , despite the bonus controversy . Watch senators ' plan to retrieve money » . `` It is wrong to govern out of anger , '' said Summers . `` We have to recognize what we are angry about , do something about it . That 's why we are focused on a new resolution regime as part of a sweeping overhaul of the financial system. `` ... But we ca n't let anger stop us from taking the steps that are necessary to maintain the stability of the financial system , keep credit flowing . '' Watch tempers rise over bonuses » . Summers said President Obama 's entire economic team is working hard to mitigate the problems caused by bank failures , bailouts and credit freezes and boost the country 's economy . `` There 's one lesson of the history of financial crisis that no one can argue with , and that is that they all end , and this one will , too , '' he said . `` And if we are able to maintain the right policies , we 'll bring forward the day when it ends , and -- probably even more important -- we 'll have a sounder stronger economic expansion at the end of it . '' The former treasury secretary is not quite as bullish about a turnaround , however , as Federal Reserve Chairman Ben Bernanke , who predicted the recession may be over by the end of 2009 . Asked about Bernanke 's prediction , Summers said he was upbeat about some aspects of the economy -- such as a 22 percent spike in housing starts and recent upticks in the stock market -- but said he was cautious about making any grand pronouncements . Summers told CNN that while he 's confident of a turnaround , `` just what day the turn will come is n't something that I would dare to forecast . '' `` Something that the president has made clear to us is his approach and the approach he wants us to take is a recognition that we do n't panic when there 's a bad number , bad day on the markets , and we do n't become euphoric when there 's a good day in the markets , or a good number , '' Summers said . Asked specifically about Bernanke 's prediction on CBS ' `` 60 Minutes '' about the recession ending this year and 2010 potentially being a year of recovery , Summers demurred . `` We always are at pains to recognize when we talk to the president that economic forecasting is the most imperfect of sciences , '' said Summers . `` Many people would say it was n't a science at all . We stress the uncertainties in this situation . ''
Lawrence Summers is President Obama 's chief economic advisor . He puts contracts legally in hands of Treasury secretary to deal with AIG problems . Summers : Pushing AIG too hard could have led to Lehman Brothers - style collapse . ` ` We ' n't put the whole economy at risk '' because we 're angry , he cautions .