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January 8, 2010

Geithner-Led New York Fed Tried to Hide AIG Payments
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Newly disclosed emails show the Federal Reserve Bank of New York asked
the bailed-out insurance giant AIG to hide details on the billions of
dollars it paid to banks at the height of the financial meltdown. In
what some have called the “backdoor bailout,” AIG gave nearly $13
billion to Goldman Sachs and tens of billions more to other firms,
including Bank of America, Merrill Lynch, JPMorgan Chase, Morgan Stanley
and several foreign banks. The newly revealed emails show the New York
Fed deleted a reference in an AIG regulatory filing documenting payments
to Goldman Sachs and the French bank Societe Generale. Treasury
Secretary Timothy Geithner was the head of the New York Fed at the time.
In a statement, the Treasury Department said Geithner had played “no
role” in the AIG secrecy.



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