Posted on January - 06 - 2010
Emails Reveal Fed / AIG Cover-Up
A stream of emails obtained by Rep. Darrell Issa, ranking member of the House Oversight and Government Reform Committee, reveals the New York Fed, then led by Tim Geithner, told AIG (AIG) to delete from a Dec. 24, 2008 regulatory filing disclosure that the Fed-controlled company paid banks 100 cents on the dollar for $62.1B in credit-default swaps they bought from AIG.
“It appears that the New York Fed deliberately pressured AIG to restrict and delay the disclosure of important information to the SEC,” Issa said in a statement. “The American taxpayers, who own approximately 80% of AIG, deserve full and complete disclosure under our nation’s securities laws, not the withholding of politically inconvenient information.
“This news ought to serve as a cautionary tale to those who advocate giving the Federal Reserve even more power over the U.S. economy. The lack of transparency and accountability is disturbing enough, but the outstanding question that remains is why the [New York Fed] didn’t fight for a better deal for the American taxpayer. Clearly, the New York Fed wanted to suppress details and limit disclosure of the counterparty deal from the American people — the only question is why?”
And here are the emails:
AIG-New York Fed e-mails
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