Posted By Yulun Hung
Written By Michael Bowman
America's top financial officials say they need broad new powers to regulate companies like insurance giant AIG, which are partly blamed for the country's financial crisis. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke testified before the House Financial Services Committee Tuesday.
In recent weeks AIG and its multi-billion dollar taxpayer bailout have become targets of public fury and frustration. A once-successful titan in the insurance industry, AIG (American Insurance Group) became enmeshed in America's home mortgage meltdown by insuring questionable debt accrued by banks and other institutions around the world. After receiving more than $180 billion in emergency federal assistance to stave off collapse, AIG recently gave top employees bonuses totaling $165 million - even as the company reported the biggest quarterly loss in U.S. corporate history.
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