Surprise! Geithner’s Fed Told AIG to Limit Swaps Disclosure
Jan. 7 (Bloomberg) — The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.
I wonder if there will be anything to this? Geithner covering for GS and SocGen for getting bailed out 100% of the AIG scandal on the taxpayer dime. Geithner then gets a promotion to SecTreas.
“It appears that the New York Fed deliberately pressured AIG to restrict and delay the disclosure of important information,” said Issa, a California Republican. Taxpayers “deserve full and complete disclosure under our nation’s securities laws, not the withholding of politically inconvenient information.”
“Our position has always been that if AIG’s securities lawyers determine that AIG is legally obligated to make a particular filing or disclosure, then that is what AIG must do,” Thomas Baxter, general counsel for the New York Fed, said in a statement.
How convenient, kinda sounds familiar? The government telling Ken Lewis of BoA what to do, before they didn’t. “Well, we say lots of things but its up to him to do whats right.”
“Federal Reserve officials provided AIG’s counterparties with tens of billions of dollars they likely would have not otherwise received,” Barofsky wrote in a Nov. 17 report. “The default position, whenever government funds are deployed in a crisis to support markets or institutions, should be that the public is entitled to know what is being done with government funds.”
Entitled to know? Who, us? The peasant public? Nah, they’ll tell us when they are good and ready. If they want our opinion, they’ll give it to us. After all, its really their money and they just graciously let us borrow it for a few years.