Grassley calls for investigating Treasury for AIG bonuses

Sen. Charles Grassley (R-Iowa), the Republican ranking member of the Senate Finance Committee, has called on the inspector general of the Treasury Department to investigate any role the treasury had in AIG's decision to pay $160 million in bonuses.

Grassley sent a letter for Eric Thorson, the Treasury's inspector general, on Tuesday night. In it, he asks for Thorson to investigate the conditions under which the Treasury gave AIG $170 billion in bailout funds. In particular, Grassley wants to know if Treasury officials did anything to "forestall payments or bonuses

In so doing, I request that you obtain and analyze such contracts and determine how the obligation to pay bonuses is established, for example by individual performance or overall corporate performance.


In addition, it has been reported that the Treasury Department and the Federal Reserve took every legal step possible, but unfortunately were unable to stop AIG