House subpoenas Geithner's AIG e-mails, phone logs - Spokane, North Idaho News & Weather KHQ.com

House subpoenas Geithner's AIG e-mails, phone logs

 

 

 

 

 

 

 

 

 


WASHINGTON. - A House committee probing bailout deals is demanding that the Federal Reserve Bank of New York turn over correspondence from Treasury Secretary Timothy Geithner and other officials.
     
The House Oversight and Government Affairs Committee is looking into New York Fed decisions that funneled billions of dollars to big banks, including Goldman Sachs Group and Morgan Stanley.
     
Geithner was president of the New York Fed at the time. An audit shows he approved decisions involving the money from the bailout of failed insurer American International Group. The subpoena demands e-mails, phone logs and meeting notes from Geithner and other top New York Fed officers.
     
The panel is also asking Geithner to testify about his role in the AIG bailout and the decision not to disclose what banks benefited.
     
A November audit says the bank payoffs might have cost taxpayers billions more than necessary because Geithner did not demand concessions from AIG's business partners.

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