American International Group, even as its financial situation became risky, doled out millions in bonus money and ignored concerns voiced by regulators and auditors, according to material revealed at a House hearing today.
The information was made public by Rep. Henry Waxman, D-Calif., chairman of the House Oversight and Government Reform Committee, which is examining regulatory mistakes and company mismanagement which led to the need for an $85 billion government bailout of AIG.
Mr. Waxman disclosed that the U.S. Office of Thrift Supervision sent a letter to AIG's general counsel March 7 voicing concerns about the risk management and corporate oversight of AIG Financial Products, the unit whose losses created the company's financial crisis.
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