An independent investigator is launching two probes into the government’s rescue of American International Group Inc. and the insurer’s subsequent payments of billions to big banks.
Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, says the Fed withheld documents he requested when auditing AIG’s “backdoor bailouts” of banks it did business with, including Goldman Sachs Group Inc. Barofsky’s allegations came in prepared testimony provided to members of the House Committee on Oversight and Government Reform and obtained by The Associated Press.
The Federal Reserve Bank of New York produced 250,000 pages of documents after committee Chairman Edolphus Towns, D-N.Y., issued a subpoena earlier this month.
The committee is investigating why the New York Fed, then led by Treasury Secretary Timothy Geithner, agreed to pay banks billions to cancel their contracts with AIG, which is based in New York.
Geithner approved the deals, which may have cost taxpayers billions more than necessary because he did not demand concessions from banks AIG did business with, according to Barofsky’s earlier audit.
“If anyone at the Fed thought that this investigation will stop after Wednesday’s hearing they are completely mistaken,” said California Republican Darrell Issa, the committee’s top Republican. “There has been a widespread effort by officials at the New York Fed to thwart transparency, and we will continue to pursue this investigation for as long as it takes to get the truth.” Read more at SOURCE
The investigations into Obama’s Radical Government has started and after the elections in November we shall see many more investigations into his radical people that surround him. The dirt will come out in the wash my mother alway said. Its been awhile since I ask, Are you better off today under the leadership of Obama than you were 6 years ago? Maybe the millions unemployed could answer that the best!