Geithner Called to Testify Over AIG Counterparty Cover Up
Will appear before the House Oversight Committee the week of January 18.
The House Oversight Committee is responding to news that key details about AIG's bailout were suppressed by the Federal Reserve Bank of New York while Geithner was its president. A growing chorus of lawmakers says Geithner must explain his involvement in deals that diverted billions from AIG's bailout to Goldman Sachs and other big banks. New York Democrat and committee Chairman Edolphus Towns says the hearing will examine the rise and fall of AIG and its business partners. source: the hill -----
Barney Frank is considering holding similar hearings in his committee.
Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, says his committee may hold hearings about Tim Geithner and his role in supressing disclosure of AIG bank payments.
Reports from Thursday indicated that the New York Fed, then headed by Geithner, urged AIG not to disclose that it had paid banks 100 cents on the dollar for "credit default swaps" after its bailout.
"Did they have the authority to tell AIG to pay less than 100 percent or not?" Frank said in an interview with Business Week. "That's an interesting debate. But the important point to make is that we are making sure that that debate will never happen again."
Frank said he still supports Geithner.
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That's 1 down, and 1 to go. Do not forget about Stephen Friedman.