Friday, January 8, 2010

Tim Geithner's Dirty Deals


Representative Elijah Cummings of the Oversight and Government Reform Committee called for an investigation and hearing into what information was withheld from the public at the New York Fed’s request in 2008, when Geithner led the regulator. E-mails obtained by Congress include New York Fed requests that the bailed-out insurer withhold documents from public filings and delay disclosures about payments to banks to retire credit-default swaps, Bloomberg News reported yesterday.

“It is essential to know what knowledge or involvement now-Secretary of the Treasury Geithner had in the decisions made by New York Fed officials to exclude information” from AIG’s regulatory filings, Cummings wrote yesterday to committee Chairman Edolphus Towns, a New York Democrat. It is “critical” that Geithner testify before Congress, Cummings wrote.

The demand adds to pressure on Geithner to justify his handling of New York-based AIG’s bailout, which was $85 billion when he helped orchestrate the first rescue in 2008 and swelled to $182.3 billion. Representative Darrell Issa, a California Republican on the oversight committee, has called payments to AIG trading partners a “backdoor bailout” because banks got 100 cents on the dollar for swaps tied to subprime mortgages.

Timmeh you gots some explainin to do!

I am Frank Chow and I approved this message

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