Fed Chairman Considered Lawsuit To Stop Executive Payouts

By: Associated Press
By: Associated Press
To join the conversation on this story and others, "like" our KKTV 11 News Facebook page!

WASHINGTON (AP) -- The Federal Reserve chairman says he'd wanted to stop a bailed-out company from handing out millions in executive bonuses.

Ben Bernanke tells Congress the AIG payments were "highly inappropriate" and he considered filing a lawsuit to stop them.

He says his legal staff talked him out of it. Bernanke later learned that a failed lawsuit could have forced the government to pay huge amounts in punitive damages.

Treasury Secretary Timothy Geithner also testified at today's House hearing. He was asked if there were similar big bonus payouts at other companies getting took taxpayer money.

Geithner said the practice "goes well beyond AIG." But he was noncommittal about presenting a list of the companies involved and bonuses paid.

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

KKTV firmly believes in freedom of speech for all and we are happy to provide this forum for the community to share opinions and facts. We ask that commenters keep it clean, keep it truthful, stay on topic and be responsible. Comments left here do not necessarily represent the viewpoint of KKTV 11 News.

If you believe that any of the comments on our site are inappropriate or offensive, please tell us by clicking “Report Abuse” and answering the questions that follow. We will review any reported comments promptly.

powered by Disqus
KKTV 520 E. Colorado Colorado Springs, CO 80903 Office: (719) 634-2844 Fax: (719) 632-0808 News Fax: (719) 634-3741
Copyright © 2002-2016 - Designed by Gray Digital Media - Powered by Clickability 41767777 - kktv.com/a?a=41767777
Gray Television, Inc.