Mortgage Law
New York Fed Faces House Subpoena Over AIG Bailout
January 13, 2010 by admin · Leave a Comment
The Federal Reserve Bank of New York may be forced to deliver documents related to American International Group Inc.’s government bailout after the chairman of a House oversight committee said he would issue a subpoena.
Edolphus Towns, the New York Democrat who runs the Oversight and Government Reform Committee, said yesterday in a statement he would issue a subpoena for New York Fed records concerning the decision it made to fully reimburse AIG’s partners. Banks including Goldman Sachs Group Inc. and Societe Generale SA were among beneficiaries of AIG’s rescue, called by lawmakers a “backdoor bailout” for financial firms.
The New York Fed, run by Timothy Geithner when AIG was rescued, had resisted since November calls to provide documents without a subpoena, Darrell Issa, the ranking Republican on the oversight committee, said yesterday in a letter.
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