In testimony before the House Financial Services Committee, AIG CEO Edward Liddy testified that Federal Reserve Chairman Ben Bernanke signed off on the retention bonuses.
On the other side of the Capitol, Sen. Chris Dodd admitted he slipped the loophole in the stimulus bill that allowed AIG to rip off taxpayers.
Meanwhile, Time magazine reports the Obama administration reportedly knew about the bonuses before they cut a $30 billion check for AIG:
Although Treasury Secretary Timothy Geithner told congressional leaders on Tuesday that he learned of AIG’s impending $160 million bonus payments to members of its troubled financial-products unit on March 10, sources tell TIME that the New York Federal Reserve informed Treasury staff that the payments were imminent on Feb. 28. That is 10 days before Treasury staffers say they first learned “full details” of the bonus plan, and three days before the Administration launched a new $30 billion infusion of cash for AIG.
While politicians play the blame game, a Gallup poll found that 76 percent of Americans want the government to block or recover the bonuses.
Later today, outraged Americans will take to the streets. From Wall Street to Main Street, fired-up citizens will demonstrate in nearly 100 cities to take back the economy. They will voice their anger at the offices of bailed out bunglers, including AIG, Goldman Sachs and Bank of America.
To find an event near you, go here.
