Testimony

Geithner, Bernanke Seek Wider Powers

Testifying before Congress about the economy and AIG on Capitol Hill today, Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke sparred with lawmakers and urged expanded authority to take control of financial institutions. Both men “called for new powers to take over and wind down failing financial companies after the government’s troubled rescue of American International Group Inc,” Bloomberg reports. The two also called for stronger regulation and reiterated their opposition to the AIG bonuses. Bernanke also said he tried to sue the insurance giant to halt bonus payments to its financial products division but failed because the Fed’s legal counsel said punitive damages could be awarded if the lawsuit failed.