Geithner’s NY Fed told AIG to keep quiet on deals
WASHINGTON (AP) — The Federal Reserve Bank of New York pressed American International Group Inc. to withhold details of controversial deals that funneled billions in bailout money to Goldman Sachs and other banks.
E-mails show lawyers representing the New York Fed asked AIG to remove the information from a draft financial disclosure. Treasury Secretary Timothy Geithner was president of the New York Fed at the time.
The deals were part of a massive rescue effort at the peak of the financial crisis.
Lawmakers and others have accused Geithner’s Fed of overpaying banks, including Goldman and Deutsche Bank, to cancel deals with AIG.
The New York Fed says forcing the banks to take losses or disclosing more information could have worsened the crisis.