MORE INSPECTOR-GENERAL QUESTIONS, AT THE L.A. TIMES: Timing of Treasury Department challenge, AIG probe raises concerns.

A Treasury Department challenge to the authority of government bailout watchdog Neil M. Barofsky came just as he had begun a sensitive investigation of the department’s role in approving bonuses to executives of insurance giant AIG, sources said Thursday. . . .

Asked why Barofsky’s legal authority was challenged by the department just as the AIG inquiry began, Treasury Department spokesman Andrew Williams said: “It is entirely a coincidence.”

Hmm. Stay tuned. (Via Dan Riehl).