The New York Fed says Tim Geithner wasn’t involved in the New York Fed’s late 2008 effort to press AIG to avoid disclosing information about its bailout funds.
A Fed lawyer said in a statement:
Matters of AIG securities law disclosure were not brought to the attention of the president of the Federal Reserve Bank of New York.
Geithner, now the Treasury Secretary, ran the New York Fed at the time.
Emails released yesterday showed that Fed staff urge AIG to avoid disclosing the fact that it had paid used bailout funds to pay its counter-parties 100 cents on the dollar on credit-default swaps. That decision may have cost taxpayers billions.
Several lawmakers have called for hearings on the issue.
