Economy

Follow PBS NewsHour’s complete coverage of the Economy, Wall Street and other financial stories.

Mar 18

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The head of American International Group appeared on Capitol Hill Wednesday amid a furor over bonus pay at the company and told lawmakers that he's called on employees to return a portion the controversial payments.

Mar 18

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The longtime accountant for jailed swindler Bernard Madoff was arrested Wednesday and charged with fraud dating back 17 years for failing to conduct audits in what was may be the biggest investment fraud on Wall Street.

Question: Why were pension funds allowed to “invest” in a hedge fund? Hedge funds are nothing more than gambling. Paul Solman: Because pension funds are supposedly big enough and therefore sophisticated enough to know what they’re doing and take considered…

As the furor continues over millions of dollars in employee bonuses at the failed insurance giant AIG, lawmakers and administration officials in Washington are weighing their options to either block the payments or penalize the company.

Question: Given our collective financial plight and our need for credit to survive, how do we get banks to be banks again (read: lend)? Can it be legislated – and if not, how can we surmount our impasse? Paul Solman:…