Speculation About Geithner’s Role in AIG Bailout Heats Up
It’s unclear what exactly the fallout will be regarding troubling new details about Tim Geithner’s role in the AIG (AIG) bailout, but the New York Times attempts to process the information today. Geithner, who was president of the Federal Reserve Bank of New York, and thus administering the government bailout of the insurance giant, seemingly allowed his staff to tell AIG to gloss over or not disclose key pieces of information in SEC filings, about the level of support the firm was getting from the Fed. A Treasury spokeswoman told the paper Geither was recused from working on issues related to AIG by the date of the filing, but Geithner’s role in crafting the bailout is simply too instrumental to simply dismiss. Representatives of the Fed claim the changes were innocuous and did not cover up material information about the company, which, because it is publicly traded, it’s required to disclose. AIG wouldn’t comment, but Republican Congressman Darrell Issa, who requested the documents, promised to ask for inquiries into the matter, and to try to bring Geithner before the House oversight committee of which he’s ranking member.