March 19, 2009 -- WASHINGTON (AFP) - U.S. Federal Reserve officials knew about the controversial AIG bonuses but did not tell Treasury or White House officials for months, the Washington Post reported Thursday.
The American International Group informed the Fed three months ago that it would pay 165 million dollars by March 15 to employees in their Financial Products unit, the Post reported, citing government and company officials.
The bonuses were doled out to the AIG division at the heart of the company's near collapse and whose intricate dealings with banks worldwide helped trigger the global financial crisis.
Treasury Secretary Timothy Geithner told the Post that he had not been aware of the size of the bonuses and the timing of the payments.
