WASHINGTON–Federal Reserve Board Chairman Ben Bernanke has sent out a letter assuring Sen. John Kerry, D-Mass that his agency has pressed American International Group to ensure that "robust" corporate governance surrounds any decisions about employee compensation.

Chairman Bernanke said in his Tuesday letter that the systems established by AIG to comply with the Fed requests includes review of all employee compensation decisions by its human resources division, the compensation panel of AIG's board, and consultation with outside experts.

He wrote the senator that the Fed also supported the establishment of a special governance committee within AIG, the issuance of a new expense policy guidebook for all employees "and the cancellation of all meetings, conferences and other events that are not strictly justified by clear business needs."