Treasury secretary grilled over AIG bonuses

Treasury Secretary Timothy Geithner arrived on Capitol Hill Tuesday to be questioned by members of the House Financial Services Committee on the millions of dollars in bonuses given out at the beleaguered

News 12 Staff

May 27, 2014, 9:44 PM

Updated 3,643 days ago

Share:

Treasury secretary grilled over AIG bonuses
Treasury Secretary Timothy Geithner arrived on Capitol Hill Tuesday to be questioned by members of the House Financial Services Committee on the millions of dollars in bonuses given out at the beleaguered American International Group.
"I share the anger and frustration of the American people not just about the compensation practice at AIG and in other parts of our system, but that our financial system permitted a scale of risk that has caused grave damage to the lives of many Americans," he said.
After getting $170 billion in recovery funds, Geithner was asked whether he was in the room when the bonus discussion occurred. The treasure secretary and Larchmont resident denied prior knowledge of the payouts, but added that the administration should put in place standards that would govern compensation practices.
Federal Reserve Chairman Ben Bernanke, who was also present at the hearing, said it was highly inappropriate for AIG to reward employees in its financial products division after it brought the company down.
"I asked that the AIG payments be stopped but was informed that they were mandated by contracts agreed to before the government's intervention," he said.
Geithner asked Congress for broader powers that would allow the government to prevent another compensation-related scandal from erupting in the future.


More from News 12
1:53
Hudson Valley unites to help Ukraine, continues local efforts to help war-torn country

Hudson Valley unites to help Ukraine, continues local efforts to help war-torn country

2:23
Mostly cloudy, chance for scattered afternoon showers for Saturday in the Hudson Valley

Mostly cloudy, chance for scattered afternoon showers for Saturday in the Hudson Valley

0:20
Police: Spikes deployed by officers to stop car during pursuit in Town of Bedford

Police: Spikes deployed by officers to stop car during pursuit in Town of Bedford

0:30
Yorktown Grange Fair to celebrate its 100th anniversary this September

Yorktown Grange Fair to celebrate its 100th anniversary this September

1:48
City of Mount Vernon celebrates and reflects 70 years since landmark Brown v. Board of Ed decision

City of Mount Vernon celebrates and reflects 70 years since landmark Brown v. Board of Ed decision

0:27
Man arrested for hate crime at Kingston synagogue

Man arrested for hate crime at Kingston synagogue

0:31
Westchester County DA: Peekskill man pleads guilty to gunning down man in front of his children

Westchester County DA: Peekskill man pleads guilty to gunning down man in front of his children

0:47
Two Middletown state troopers honored for heroism

Two Middletown state troopers honored for heroism

1:44
Caught on camera: Person seen taking down Israeli flag from Rockland County business

Caught on camera: Person seen taking down Israeli flag from Rockland County business

0:59
Man who allegedly set Warwick home of trooper’s family on fire indicted for attempted murder

Man who allegedly set Warwick home of trooper’s family on fire indicted for attempted murder

1:31
DEC tranquilizes, safely relocates bear in Poughkeepsie neighborhood

DEC tranquilizes, safely relocates bear in Poughkeepsie neighborhood

1:45
Transfiguration School set to close with little notice, leaving parents scrambling to find new schools

Transfiguration School set to close with little notice, leaving parents scrambling to find new schools

0:50
New firefighter training center opens in Pomona

New firefighter training center opens in Pomona

0:53
29th annual Today's Students Tomorrow's Teachers brunch celebrates future educators

29th annual Today's Students Tomorrow's Teachers brunch celebrates future educators

0:19
Playland Park's Gondola Wheel closed due to active Osprey nesting

Playland Park's Gondola Wheel closed due to active Osprey nesting

0:35
Ossining family awarded over $23 million for medical malpractice lawsuit against Westchester Medical Center

Ossining family awarded over $23 million for medical malpractice lawsuit against Westchester Medical Center

1:04
Royal Regency Hotel in Yonkers celebrates 30 years of business

Royal Regency Hotel in Yonkers celebrates 30 years of business

0:41
Lakeland Central School District joins search for 2 missing Westchester teens

Lakeland Central School District joins search for 2 missing Westchester teens

0:23
New York Rangers beat Carolina Hurricanes 5-3 to advance to Eastern Conference Final

New York Rangers beat Carolina Hurricanes 5-3 to advance to Eastern Conference Final

0:52
New image released of missing Westchester County teens

New image released of missing Westchester County teens