Wednesday, March 18, 2009

Report: Treasury knew about AIG bonuses earlier than Obama Administration claims

TPM:

AIG CEO Edward Liddy told the House Financial Services Committee today that the Federal Reserve had okayed his company's planned bonuses in advance -- and now Time magazine reports that the Treasury Department also knew about the ticking political time-bomb earlier than it has acknowledged.

As the magazine reports:

"Treasury staff was informed about the new bonuses in a Feb. 28 memo that the March 15 [bonus-payment] date was upcoming," a Federal Reserve source tells TIME. A Treasury Department source, speaking on background, confirmed the e-mail memo and its contents, saying, "Everybody knew that [AIG] had a retention issue."

It also mentioned that it may be staff issue that didn't get the memo to Geithner in time.

Also this:Dodd: I added stimulus bonus provision. There is no mention on who killed the bonus provision in the Senate.

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