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Scott Spoerry
Senior Producer, CNN Washington

When Ben Bernanke told the Senate Budget Committee that American International Group (AIG) "exploited a huge gap in the regulatory system” and that “there was no oversight of the Financial Products division," it seemed to make sense. The Federal Reserve Chairman went on to say, "This was a hedge fund basically that was attached to a large and stable insurance company."

If nobody was keeping an eye on them, well no wonder it blew up.

But it turns out Mr. Bernanke was not quite accurate when he said “no oversight.” He made that statement on March 3rd.

Just two days later a man hardly anybody has ever heard of explained to yet another Senate committee that - hold the presses - there WAS a regulator for the Financial Products unit of AIG. (By the way, everyone just calls it FP now…that saves time and makes it sound like we know what we’re talking about).

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