Citing national security concerns, the Federal Reserve Bank of New York pressured American International Group to withhold data about bailout payments passed along to counterparties, according to a report by Reuters.
E-mails obtained by Reuters indicate that both New York-based AIG and officials at the New York Federal Reserve's sought to keep details about the bailout secret. Last week, Federal Reserve Bank of New York President William Dudley issued a statement refuting charges that the dealings between the regulators and AIG were inappropriate.
“We are in favor of a full and objective review of our actions and look forward to the opportunity to document for the public and members of Congress our involvement in AIG,” Dudley said. “All of the Federal Reserve’s actions regarding AIG were undertaken to protect the American people from an even more severe economic downturn and to safeguard U.S. taxpayers’ interests in the company,”
The new comes in advance of scheduled hearings by U.S. House of Representatives Oversight and Government Reform Committee relating the controversial $180 billion bailout of AIG. Witnesses scheduled to testify at the hearings on Wednesday include Treasury Secretary Timothy Geithner and Thomas Baxter, EVP and General Counsel for the Federal Reserve Bank of New York.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access