Fed Knew of AIG Bonuses

Time to nail AIG to the wall again? “[S]enior officials at the Federal Reserve Bank of New York received details about the bonuses more than five months before the firestorm erupted and were deeply engaged with AIG as well as outside lawyers, auditors and public relations firms about the potential controversy,” writes The Washington Post. “But the New York Fed did not raise the alarm with the Obama administration until the end of February.” Treasury Secretary Timothy Geithner was the head of the New York Fed at the time it learned of the bonuses, though his name does not surface in the documents obtained by the Post. The Post also notes that, while employees at AIG’s Financial Products division promised to return about a third of the $165 million paid out in bonuses, “it is unclear when or how much will be returned.’