New York Fed Subpoenaed!

The House Oversight Committee will issue a Subpoena to the New York Federal Reserve due to it's 100% payout of AIG Credit Default Swaps and trying to stop AIG from disclosing this via their 10-k release.

“To help the committee’s investigation of payments made by AIG to its counterparties, I am issuing a subpoena today to the Federal Reserve Bank of New York,” Edolphus Towns, the New York Democrat who runs the Oversight and Government Reform Committee, said in an e-mailed statement. “This subpoena will provide the committee with documents that will shed light on how and why taxpayer dollars were used for a backdoor bailout.”

Towns’ attempt to force the New York Fed to provide documents comes after the ranking Republican on the committee, Darrell Issa of California, obtained e-mails showing the regulator pushed AIG to withhold information from public filings about payments to banks. The New York Fed in November declined to provide some documents Issa was seeking without a subpoena, Issa said in a letter to Towns today.

Now, how serious is this in terms of doing anything? It seems even when evidence is overwhelming on screwing the taxpayer or corporate welfare nothing ever happens.

This is in reference to the emails which show Geithner tried to stop AIG from disclosing the risk, debt and payout of the CDSes to counterparties.

Subject Meta: 

Forum Categories: 

AIG bailout is blowing up

I've been collecting some news articles and building a history for an essay about the AIG bailout. This one deserve a full-on rant.

Looking forward to it.

This was a $12 trillion fiasco and who has been held accountability for it?!! Nobody. Even Fuld (Lehman Bros.) walked away with millions in pre-bankruptcy bonuses. - Financial Information for the Rest of Us.

themed series

Sounds like it would be a classic and can't wait until you publish it.

Which reminds me, I am working on code, (very hairy nasty stuff which I had to put together a full bore development server together for vs. my original live site hacking!)
but I want to do "series" posts, which would link to previous posts on a topic.

So, there are some great posts on EP from the past on AIG, one can link to a bunch of them as reference and then don't forget the ability to host documents, file uploads, for further reference.

We also have mimetex (a mathematical script) on EP for advanced display of calculations.

Now their choice for NY Fed chair makes sense?

Now, do you suppose they foresaw this? Which accounts for them putting NY AFL-CIO guy, Denis Hughes, in as interim chair of the NY Fed?

The choice was reported as a political sop, but I wonder if it suited them to have a complete non-finance head, a non-bankster, in with the vultures?

Just wondering.....

("Chairman Hughes, please ignore all those shredders in the background. It's just that it's our decade cleanup is due.")

Fall guy?

This is the first I've heard of this (or maybe remember about this). What's he doing there and what are you implying,he's a good guy who is now the fall guy or we have something else going on or?

I think the target is Tim Geithner, but what is the NY Fed doing lately?

Maybe you want to write up a blog post on this if it's good juicy intel?