Geithner To Testify At House Inquiry On AIG, Fed Dealings 

WASHINGTON—Treasury Secretary Timothy Geithner has been scheduled to testify before a House committee concerning controversial dealings between the Federal Reserve Bank of New York and American International Insurance.

His appearance  Jan. 27 before the House Committee on Oversight and Government Reform was requested after e-mails revealed that while he headed the Fed, when bailout arrangements were made for AIG, the insurance conglomerate was kept from disclosing that it would pay trading partners 100 cents on the dollar on credit default arrangements that went bad.

The Fed has denied that Mr. Geithner played a role in having AIG keep that information from filings with the Securities and Exchange Commission.

As part of its inquiry into transactions making whole a number of foreign and domestic bank counterparties to American International Group’s credit default swap transactions, the committee has issued subpoenas for documents.

The upcoming hearing will also examine other issues related to the collapse and federal rescue of AIG, Rep. Edolphus Towns, D-N.Y., chairman of the panel, said Friday in announcing that Secretary Geithner has agreed to appear.

“When average people were losing their homes and their jobs, the Bush administration decided to use taxpayer dollars to give a backdoor bailout to the biggest players on Wall Street,” Rep. Towns said.

“Now we know that the people who delivered the bailout wanted to keep the details hidden from the public,” Mr. Towns added.

“We need to understand why and how taxpayer dollars were used to bail out the same people who helped cause the financial crisis in the first place,” he said.

Besides Mr. Geithner, others who have agreed to testify include Thomas Baxter, executive vice president and general counsel of the Federal Reserve Bank of New York; Neil Barofsky, special inspector general for the Troubled Asset Relief Program (SIGTARP); and Elias Habayeb, the former senior vice president and chief financial officer of the AIG Financial Services Division.

Also invited to testify were Henry Paulson, the former treasury secretary, and Stephen Friedman, the former chairman of the Federal Reserve Bank of New York (FRBNY) and current member of the Goldman Sachs board.

• • 1/19/2010 2:51:17 AM
  • bob
  • http://www.takeitbackday.org/
  • http://www.newyorkfed.org/markets/participants_011510.pdf Make sure Timmy Geithner explains Synthetic Collateralized Debt Obligations , how they were packaged , who packaged them, where they are now, quantify the amount of toxic garbage buried in them, who wrote the CDS's on them , how big the spreads were that were buried by the "sell side"in both the physical securities and the derivatives, how much the buy side money managers {read "fiduciaries"} were bonused for outperforning their "competitive universe" by fraudulently pumping up yeilds , are those "fiduciaries" still managing the publics money, who other than the so called hedger also bought the "insurance" and if the taxpaying public is still paying the counterparties on this vile scam. Please show us Timmy where the numbered account identities are at foreign banks are itemized for the BIS showning the recipients of ongoing credit default swap payments? Think; numbered foreign bank accounts holding Credit Default Swaps for the likes of Pelosi, Soros, Greenspan, Dodd, Frank, Rubin , Paulson ,Reid, Clintons ,Bush , Cheny , ...where the cds income is still being paid to this day http://www.youtube.com/watch?v=c0ndsXVaPwc&feature=related

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