AIG Was Instructed By NY Fed To Keep Quiet On Bailout Issue
January 8th, 2010 - 6:28 pm ICT by GDBy Ranjan Bhaduri
Jan 8, (THAINDIAN NEWS) The economic meltdown that started with the debacle of Lehman Brothers in 2008 and subsequently crippled US economy is quite well known. It forced a financial giant like AIG to seek government help to avoid bankruptcy. However, some recent revelations have brought out the hitherto unknown sordid truths about the role New York Federal Reserve Bank played during the infamous bailout of AIG. At that time NY Fed was led by Timothy Geithner. He allegedly forced AIG to maintain secrecy on the bailout issue. This revelation has created a stir among the political and legal circles. As per the latest reports lawmakers are preparing to investigate the case from the scratch.
The emails exchanged between the legal advisers of AIG and NY Fed clearly shows that AIG wanted to reveal the details of the bailout. However, the lawyers employed for New York Fed who played a crucial role in AIG bailout asked AIG to keep the information a secret. It is expected that Timothy Geithner will be asked to explain his stand before the US congress. If it happens, the inside truths of the deal will be revealed which may not be desirable for some of the political bigwigs. Timothy Geithner has been accused to neglecting housing crisis and unemployment while stressing on rescue of Wall Street Financial giants like AIG.
It is natural that Timothy Geithner will gain the support of his followers in government but the issue will not be left aside by the media. The investigation may also prove the suspect that the US government overpaid the so called ailing banks that have returned to good form.
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- US Fed chief asks Congress to review AIG bailout - Jan 20, 2010
- AIG pays back $1.5 bn to US Treasury - Mar 23, 2012
- Timothy Geithner Testimony: Actions Taken In The Best Interest Of Americans - Jan 28, 2010
- Lawmakers want a testimony by Timothy Geithner - Jan 29, 2010
- Federal Bailout Costs Slated to Reduce TARP - Oct 06, 2010
- Full Review Of AIG Bailout Demanded By FRBNY - Jan 20, 2010
- Andrew Ross Sorkin's Book Reveals The Inner Truths Of US Financial Meltdown - Dec 10, 2009
- US seeks broad new powers to take over troubled firms - Mar 25, 2009
- Obama signs biggest financial overhaul in generations - Jul 22, 2010
- US should be careful of certain budget cuts: Official - Apr 05, 2012
- US Congress wants AIG bonuses back - Mar 19, 2009
- Fed Reserve gave $9 trillion emergency loans to US banks - Dec 02, 2010
- Treasury Secretary Timothy F. Geithner Proposes Bank Bailout Fee - May 05, 2010
- Fed announces $85-bn loan to AIG - Sep 17, 2008
Tags: aig, bailout, debacle, economic meltdown, federal reserve, federal reserve bank, financial giants, followers, lawmakers, legal advisers, legal circles, lehman brothers, new york fed, new york federal reserve, political bigwigs, ranjan, revelations, secrecy, timothy geithner, us congress