Darell Issa asks who demanded AIG was told to keep quiet
California Republican representative Darrell Issa is seeking more information from the New York Federal Reserve Bank about its emails asking AIG to keep it payments to banks secret, Reuters reports.
He says he was shocked that the disclosures were never brought to then-bank president Timothy Geithner's attention.
New York Fed general counsel Thomas Baxter said Geithner, now US Treasury Secretary, had no involvement in the deliberations about the disclosures -- consistent with statements he made last week.
Staggering decision
"It's a staggering admission by Mr. Baxter that he felt strong enough that Secretary Geithner wanted him to limit AIG's disclosures on counterparty payments to the SEC that he says he didn't even feel a need to bring the details to his boss' attention," Issa said in a statement.
"This letter raises more questions on the inner-workings of the New York Fed during one of the most pivotal periods in our nation's history."
The House of Representatives Oversight and Government Reform Committee has asked Geithner and Baxter to testify at a hearing on the matter next week.
