Geithner Aides Worked With AIG for Months on Bonuses

[babsbunny]

http://online.wsj.com/article/SB123777083390610069.html?mod=article-outset-box

By MICHAEL M. PHILLIPS and SUDEEP REDDY

MARCH 23, 2009

WASHINGTON -- Since the fall, senior aides to Timothy Geithner have closely dealt with American International Group Inc. on compensation issues including bonuses, both from his time as president of the Federal Reserve Bank of New York and as Treasury secretary.

The extent of their involvement, which wasn't widely known, raises fresh questions about whether Mr. Geithner could have known earlier about AIG's $165 million in bonus payments. When the bonuses sparked a political firestorm last week, Mr. Geithner said he learned about their full scope in early March, just days before they were paid.

Mr. Geithner and Federal Reserve Chairman Ben Bernanke will be grilled by Congress on Tuesday in a hearing that is likely to focus heavily on AIG. The flap has prompted lawmakers to seek curbs on an array of bonuses, tested the Obama administration and undermined Mr. Geithner's standing as he attempts to implement measures to stabilize the financial system.

[chill_wind]

1. Hmmm.

[Mike 03]

2. Raises Questions

As a Geithner proponent, I want to know more about this, especially in light of Liddy's testimony last week to the contrary.

Oh, Tim, don't screw this one up.