NY Fed’s secrecy under scrutiny from TARP inspector
US Troubled Asset Relief Programme (TARP) inspector Neil Barofsky is to investigate the New York Federal Reserve’s attempt not to disclose AIG’s payments to bank counterparties, the FT reports.
In a statement submitted to the House oversight committee, Barofsky said his team is examining whether the New York Fed improperly withheld information from the Securities and Exchange Commission and his office.
The New York Fed said it “has and will continue to co-operate fully” with Barofsky. The Treasury declined to comment.
Public disclosure
Reuters added quotes form Barofskly: “As has been widely reported, these newly disclosed documents, among other things, relate to discussions about the public disclosure by AIG of the Maiden Lane III transactions in filings with the Securities and Exchange Commission," Barofsky said in the testimony.
"In light of these documents, we have initiated an investigation in to whether there was any misconduct relating to the disclosure or lack thereof concerning the Maiden Lane III transactions," he wrote.
Bloomberg reported that Barofsky said the oversight panel inquiry unearthed documents he didn’t receive during an investigation he completed in November.
