Transparency: Geithner Orders GAG on AIG

According to the Telegraph, Tim Geithner’s Federal Reserve Bank of New York urged AIG (American International Group) to remain silent on $105B paid to banks including Goldman Sachs and Deutsche Bank.

A series of emails obtained and made public by Congressman Darrell Issa reveal that AIG had planned to inform investors in a regulatory filing published on December 24, 2008.  AIG had paid counter-party banks owed money at a rate of 100 cents on the dollar.

However, according to the emails, an official from the NY Fed crossed out the reference ahead of publication, and there was no mention of the payments, which came to light five months later, in the filing.  “It appears that the New York Fed deliberately pressured AIG to restrict and delay the disclosure of important information,” said Congressman Issa. [Read More]

So much for transparency in Washington during this new age of ‘hope and change.’  It’s about time for our personal tax-cheat Tim Geithner to receive his walking papers as he has done nothing to end the recession, and at the same time has done everything in his power to flourish it.