11 January 2010

Geithner To Come Under Scrutiny

The Hill: Issa lashes out at New York Fed over AIG bailout disclosures

Rep. Darrell Issa (R-Calif.) on Sunday night lashed out at the Federal Reserve Bank of New York for limiting the disclosure of information during the bailout of American International Group (AIG).

Issa said that e-mails unveiled last week showed that the New York Fed aimed to limit the disclosure surrounding tens of billions of dollars worth of payments associated with derivatives transactions. Treasury Secretary Timothy Geithner, who was head of the New York Fed at the time, has come under new scrutiny over what is one of the most controversial parts of the government's bailout efforts.

More than $60 billion of bailout money was used to pay out AIG's derivatives obligations to a series of major American and foreign banks.

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