In Letter to Kerry, Bernanke Warned of Fed's 'Limited Rights' in AIG Oversight

Just one day before the Obama administration expressed its disapproval of AIG's $165 million in bonuses, Federal Reserve chairman Ben Bernanke warned in a private letter to a key lawmaker that the Federal Reserve did not monitor bonuses by the company. The Fed had "limited rights" in its oversight of AIG, Bernanke wrote Sen. John Kerry, D-Mass., and was "not in a position to review or approve all of the specific compensation or other expenditures" at the insurance company. In the letter, sent...Full Story