US Economists fear that the dispute over bonuses at AIG, the crippled insurance company kept alive by US taxpayer funds, could complicate the roll-out of a Treasury plan to team up with private investors to buy toxic assets in the banking system.
Tim Geithner, Treasury secretary, is planning to flesh out the details of the plan this week or next, though the timing could slip. The big question is how large a subsidy the government intends to provide by way of low-cost loans for asset purchases.
