Neil Barofsky, the special inspector general for the bailout, told Congress this morning that he’ll probe the AIG bonuses — including what role the Treasury Department played.
In words that may send a chill up Tim Geithner’s spine with their invocation of Watergate, Barofsky, asked specifically by Republicans about the Treasury Secretary’s role, said his probe would seek to find out “who knew what, when and why,” in regard to the bonuses.
He continued:
Preliminary information we have seen indicates that the TARP contract between AIG and Treasury that was entered into back in November specifically contemplated the payment of bonuses and retention payments to AIG employees, including AIG’s senior partners.
Barfosky added that he’d work with Justice Department, as well as the office of New York Attorney General Andrew Cuomo, who is probing the bonuses, to look at ways that the money can be returned to taxpayers.