Bernanke letter points to end of high living at AIG

Gone are the days of luxury California hotel retreats for executives of bailed-out US insurance giant American International Group.

Once mighty AIG has a new employee expense handbook, a special governance committee, and strict limits on executive pay, according to a letter from Federal Reserve Chairman Ben Bernanke to Senator John Kerry that was obtained by Reuters on Tuesday.

The new expense policy was mandated by the US Treasury Department and "may be materially amended only with the prior written consent of the Treasury", Bernanke said.