WASHINGTON (AP) - The treasury secretary and the Fed chairman
can expect some tough questioning about the AIG bonuses when they
go before a House panel today.
Timothy Geithner and Ben Bernanke will also be asked about the new risks to taxpayers from their
latest effort to save tottering banks and the U.S. economy: a plan
to take over up to $1 trillion in dodgy mortgage securities with
the help of private investors.
Bernanke and Geithner are likely to once again call on Congress
to enact legislation allowing the government to dismantle a big
financial institution, like AIG, to minimize the economic damage.
The House has already approved a measure to hit the AIG bonuses
with a 90 percent tax. The Senate is working on its own version of
a punitive tax.