A ray of sunlight broke through the Washington fog last week when Neil M. Barofsky, special inspector general for the Troubled Asset Relief Program, published his office’s report on the government bailout last year of the American International Group.

By Krista Hughes and Edward Taylor

By Kevin Drawbaugh

By Kevin Drawbaugh

Banks that are considered too large to fail should be dismantled rather than "coddled," Dallas Federal Reserve Bank President Richard Fisher said on Thursday.

U.S. Treasury Secretary Timothy Geithner on Thursday defended the costly bailout of insurer AIG and urged swift regulatory reform to safeguard the economy from the failure of big financial firms.

The following are highlights from a congressional Joint Economic Committee hearing on Thursday on financial reform with U.S. Treasury Secretary Timothy Geithner.

By Paritosh Bansal and Lilla Zuill

NEW YORK (Reuters) - A New York Times editorial slammed Goldman Sachs <GS.N> for its role in the financial crisis and said that instead of paying big bonuses to its employees it should make a multibillion-dollar gift to help reduce the U.S. national debt.

By David Lawder and Emily Kaiser

By Kevin Drawbaugh

By Kevin Drawbaugh

NEW YORK (Reuters) - Goldman Sachs Group Inc <GS.N> could have suffered dramatic losses if the federal government had not intervened to prop up American International Group Inc <AIG.N>, according to a government report.

Goldman Sachs could have suffered dramatic losses if the federal government had not intervened to prop up American International Group, according to a government report.

By Kevin Drawbaugh