AIG Update: Geithner Aides Knew of Bonuses “for Months”

By Justin Rood

Mar 23, 2009 10:14am

News this morning on the "what did the know and when did they know it" front. Aides to now-Treasury Secretary Timothy Geithner have known "for months" about AIG’s bonus plans, the Wall Street Journal reports today.  Geithner claims to have first learned of the payouts to AIG employees in its Financial Products division Tues. March 10. The WSJ points out that in an open hearing a week earlier, Rep. Joseph Crowley pressed him on the very topic. Treasury officials told the paper the bonus issue "didn’t register" with Geithner at the time. Geithner’s aides — both from his time at the New York Fed and his new tenure atop Treasury — have "closely dealt" with AIG on bonus and other compensation issues since last fall.  But unnamed Treasury officials are saying they did not act to brief Geithner on AIG’s ongoing bonus plan until two weeks ago. Investigators for the Treasury Inspector General and others are probing who exactly knew what about the bonus plan when, and what they did about it.

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