Frank Asks Paulson, Bernanke to Tighten Their Oversight of AIG
By Scott Lanman
Oct. 10 (Bloomberg) -- House Financial Services Committee Chairman Barney Frank asked regulators to tighten oversight of American International Group Inc. after the insurer hosted a $440,000 conference following an $85 billion federal bailout.
The executives responsible for the gathering at a California resort should ``personally reimburse'' the government, Frank, a Massachusetts Democrat, wrote to Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke in a letter signed by eight other House Democrats. The committee released the letter in an e-mailed statement today.
AIG said yesterday that it will cancel most of its planned meetings and conferences after rebukes from Congress and the White House for the gathering last month at the St. Regis resort in Monarch Beach, California, for about 100 independent insurance agents who sell coverage for New York-based AIG.
``Your agencies must take immediate steps to provide effective and comprehensive oversight over AIG and all other firms that benefit from federal loan guarantees or similar rescue measures,'' including companies that will ``benefit'' from last week's $700 billion bank rescue, Frank and the lawmakers wrote.
Frank asked Paulson and Bernanke to respond by Oct. 17 with a plan for reimbursement and ``specific plans for improving oversight of AIG and other companies that receive loans, guarantees, stock or other asset purchases or other `rescue' measures from the federal government.''
Fed spokeswoman Michelle Smith declined to comment; Treasury spokeswoman Jennifer Zuccarelli referred questions to the Fed.
AIG borrowed $70.3 billion from the Fed as of Oct. 8, the Fed said yesterday.
To contact the reporter on this story: Scott Lanman in Washington at [email protected]
Last Updated: October 10, 2008 18:45 EDT
By Scott Lanman
Oct. 10 (Bloomberg) -- House Financial Services Committee Chairman Barney Frank asked regulators to tighten oversight of American International Group Inc. after the insurer hosted a $440,000 conference following an $85 billion federal bailout.
The executives responsible for the gathering at a California resort should ``personally reimburse'' the government, Frank, a Massachusetts Democrat, wrote to Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke in a letter signed by eight other House Democrats. The committee released the letter in an e-mailed statement today.
AIG said yesterday that it will cancel most of its planned meetings and conferences after rebukes from Congress and the White House for the gathering last month at the St. Regis resort in Monarch Beach, California, for about 100 independent insurance agents who sell coverage for New York-based AIG.
``Your agencies must take immediate steps to provide effective and comprehensive oversight over AIG and all other firms that benefit from federal loan guarantees or similar rescue measures,'' including companies that will ``benefit'' from last week's $700 billion bank rescue, Frank and the lawmakers wrote.
Frank asked Paulson and Bernanke to respond by Oct. 17 with a plan for reimbursement and ``specific plans for improving oversight of AIG and other companies that receive loans, guarantees, stock or other asset purchases or other `rescue' measures from the federal government.''
Fed spokeswoman Michelle Smith declined to comment; Treasury spokeswoman Jennifer Zuccarelli referred questions to the Fed.
AIG borrowed $70.3 billion from the Fed as of Oct. 8, the Fed said yesterday.
To contact the reporter on this story: Scott Lanman in Washington at [email protected]
Last Updated: October 10, 2008 18:45 EDT
