Full Review Of AIG Bailout Demanded By FRBNY
January 20th, 2010 - 6:08 pm ICT by GDBy Ranjan Bhaduri
Jan 20, (THAINDIAN NEWS) The chairman of Federal Reserve has asked for a full review of the AIG bailout. Ben Bernanke, who serves as the Federal reserve Chairman ‘wrote to the Government of Accountability Officer’ and asked him to ‘conduct a full review’ of the bailout so as to ‘provide a comprehensive response to questions that have been raised by members of Congress’. The Congress members have been showing skepticism about the Federal reserve’s involvement in the 2008 bailout of AIG that involved $182 billion. The United States Government’s audit department has been given the job to do a full investigation of the Central Bank’s bailout of AIG.
AIG has made payments of billions to its counter-parties, which included Merrill Lynch and Goldman Sachs. The Trouble Asset Relief Programme executives claim that these payments could have been brought down in case these counter parties were pressured by the FRBNY.
People have been accusing the Fed of a “backdoor bailout” in the shadow of AIG’s payments made to its counter parties. They say the fed did it to ’secretly save the bank from collapse’. The whole issue has now become even more important given the fact that Timothy Geithner, the now-Treasury Secretary was the then-leader of FRBNY. He is also being accused that he asked the names of the involved counter parties to remain undisclosed. People like Hank Paulson (former Treasury Secretary) and Stephen Friedman have been asked to testify in the case.
The hearing is all set to take place on January 27 and will prove to be essential for a lot of involved parties including Mr Bernanke and Mr Geithner.
- Timothy Geithner Testimony: Actions Taken In The Best Interest Of Americans - Jan 28, 2010
- US Fed chief asks Congress to review AIG bailout - Jan 20, 2010
- AIG pays back $1.5 bn to US Treasury - Mar 23, 2012
- AIG Was Instructed By NY Fed To Keep Quiet On Bailout Issue - Jan 08, 2010
- Lawmakers want a testimony by Timothy Geithner - Jan 29, 2010
- Federal Bailout Costs Slated to Reduce TARP - Oct 06, 2010
- Greek default would roil financial markets: US official - Jun 23, 2011
- US seeks broad new powers to take over troubled firms - Mar 25, 2009
- `US economy impacted by European crisis' - Mar 22, 2012
- Senate backs second term for Fed Chairman Bernanke - Jan 29, 2010
- US official warns against perils of 'financial crisis amnesia' - Mar 03, 2012
- India, US to begin dialogue to boost trade, investment - Jun 27, 2011
- Ben Bernanke defends the Fed's decision to pump up the economy - Nov 07, 2010
- Warren Buffett Says Taxpayers May Profit From Bank Bailout - Feb 10, 2010
- Fed Bond Buying Spree Makes Headlines - Nov 04, 2010
Tags: aig, audit department, bailout, ben bernanke, chairman of federal reserve, collapse, congress members, federal reserve, federal reserve chairman, frbny, goldman sachs, hank paulson, members of congress, merrill lynch, ranjan, skepticism, stephen friedman, timothy geithner, treasury secretary, united states government