Reply #4: RE: "Geithner said the Treasury Department was particularly concerned"...

[Eric J in MN]

..."the government would face lawsuits if bonus contracts were breached."

Congress has the power to nullify contracts.

If someone is under contract to get paid $5/hour, and the federal minimum wage is raised to $6/hour, then the contract is void.

There is a possibility of lawsuits over any law, but the idea that a jury would be so sympathetic to an executive who had been making millions at a bailed-out company that it would side with that executive are slim.