- The Washington Times - Wednesday, March 18, 2009

WASHINGTON (AP) - Rep. Barney Frank says Congress should rewrite a Depression-era law that the Federal Reserve used to give American International Group its initial government bailout.

Frank said Congress had no say in the decision last fall to plow $85 billion in taxpayers money into the insurance giant, and said that because of that no conditions were attached to the deal to limit or restrain the payment of executive bonuses.

The Massachusetts Democrat, interviewed Wednesday on CBS’s “The Early Show,” said lawmakers have since “gotten tougher on conditions.” He said “it is my hope” that Congress will amend the statute that enabled the Fed to make the direct loan to AIG.

Frank is chairman of the House Financial Services Committee. Edward Liddy, the chairman and CEO of American International Group Inc., will appear later Wednesday before a Financial Services panel on Capitol Hill.

Copyright © 2018 The Washington Times, LLC. Click here for reprint permission.

The Washington Times Comment Policy

The Washington Times is switching its third-party commenting system from Disqus to Spot.IM. You will need to either create an account with Spot.im or if you wish to use your Disqus account look under the Conversation for the link "Have a Disqus Account?". Please read our Comment Policy before commenting.

 

Click to Read More

Click to Hide