rssTowns: Bring on Geithner
Friday, January 08, 2010 at 4:10 pm
- 46 Comments
Rep. Edolphus Towns (D-N.Y.), chairman of the House Oversight and Government Reform Committee, has invited Treasury Secretary Tim Geithner to testify on his role in the New York Fed’s 2008 decision to hide massive AIG payments to other Wall Street firms.
“More than one year after the first Federal bailout of AIG, the American people continue to question where their tax dollars were really sent when the government rescued this company,” Towns said Friday in a statement.
Geithner was head of the New York Fed when that agency advised AIG not to disclose tens of billions of dollars in payments to Goldman Sachs and other Wall Street giants in late 2008, even after the government had stepped in with $180 billion for AIG. The saga has caused some lawmakers to accuse Fed officials of staging a “backdoor bailout” to Wall Street’s major players through AIG.
The hearing is tentatively scheduled for the week of Jan. 18. As we mentioned earlier, there are others who should get an invite to testify as well.
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