Deal puts US taxpayers at risk, challenges senior Republican
Senate Finance Committee Republican Charles Grassley wants Treasury Secretary Timothy Geithner and the Federal Reserve Bank of New York (FRBNY) to say how taxpayers get a better deal from AIG equity instead of debt, Bloomberg and Dow Jones report.
"Exchanging debt for equity still leaves taxpayer dollars at substantial risk," Grassley's letter says.
"There seems to be no reason for this giveaway of taxpayer funds other than to manipulate the rating agencies into giving AIG an artificially higher rating than it deserved," Grassley wrote.
