KHQ Right Now - News and Weather for Spokane and North Idaho | Watchdog: Gov't may have overpaid to bail out AIG
Member Center:
WASHINGTON. - A government watchdog is raising questions about the way officials handled the multibillion dollar bailout of insurance giant American International Group Inc. Special Inspector General Neil Barofsky says the officials mismanaged an initial rescue attempt and may have overpaid other banks to wind down AIG's business relationships. The Federal Reserve Bank of New York - headed at the time by now Treasury Secretary Timothy Geithner - paid AIG's business partners full face value for securities. That was so they would cancel insurance contracts that AIG had written in order to ease the firm's liquidity crunch, but Barofsky says at least one of those partner banks offered to cancel the contracts for less. That means officials may have spent billions more than necessary to cancel debt insurance contracts with banks including Goldman Sachs Group Inc. and others.
Comments Terms of Use: We welcome your participation in our community. Please keep your comments civil and on point. You must be at least 13 years of age to post comments. By submitting a comment, you agree to these
Terms of Service
You must be logged in to leave a comment. Login or register See all comments |
SPOKANE, Wash. - The Spokane County Sheriff's office is investigating an armed robbery at the Village Centre Cinemas on N. Division.
BOISE, Idaho. - An Idaho legislator wants to get rid of words like "lunatic" and "retarded" from state laws, saying they're outdated and disrespectful.
PORT-AU-PRINCE, Haiti. - Five of the 10 Americans detained in Haiti on kidnapping charges left jail Monday to see a Haitian judge.
NEW YORK, N.Y. - The Super Bowl was watched by more than 106 million people, surpassing the 1983 finale of "M-A-S-H" to become the most-watched program in television history.
AIRWAY HEIGHTS, Wash. - A woman wanted for stealing a puppy from NW Seed and Pet on Saturday was charged with theft after turning herself into officers Sunday.
TOKYO. - News reports out of Japan say Toyota plans to recall about 300,000 Prius hybrids worldwide over a brake problem, but a spokesman for Toyota says no decision on a Prius recall has been made.
BOISE, Idaho. - For Idaho students who think high school lasts forever, two lawmakers want to pay them to speed up their education.
SPOKANE, Wash. - Spokane Police are searching for a suspect after a local high school student reported being attacked while jogging in Riverfront Park Monday morning.
SPOKANE, Wash. - It's been one year since 42-year-old Suzette Werner was hit and killed by a vehicle in west central Spokane, and the crime still remains unsolved.
SPOKANE - Two men are behind bars Sunday morning, one who had a nationwide extraditable warrant out of Nevada, the other charged with first degree robbery and possession of a stolen motor vehicle.
