President Barack Obama, left, appears Thursday on The

Burbank, Calif. ? President Barack Obama told Jay Leno on Thursday that he was stunned when he learned of the bonuses that bailed-out insurance giant AIG was paying its employees.

Obama told “The Tonight Show” host the payments raise moral and ethical problems — and vowed again to try to recoup the cash for taxpayers.

Leno asked Obama what he thought when his staff first advised him of the payments, many made to traders in the division that brought American International Group to ruin. “‘Stunned’ is the word,” Obama replied in a taped appearance on “Tonight.”

But Obama staunchly defended Treasury Secretary Timothy Geithner, who’s increasingly come under fire for failing to block the bonuses. “I don’t think people fully appreciate the plate that was handed him,” Obama said.

According to NBC, Obama was the first sitting president ever to appear on “The Tonight Show.” He’d already appeared twice as a candidate.

He spoke with little interference or challenge from Leno, who pronounced it “one of the best nights of my life.”

Leno veered into the personal toward the end of the 35-minute interview, asking, “How cool is it to fly on Air Force One?” and when Obama daughters Sasha and Malia would get their pet dog.

“This is Washington. That was a campaign promise,” Obama replied to audience laughter. “No, I’m teasing.”

The new pet will be in place after he returns from a NATO meeting, Obama said.