Audit Faults NY Fed in AIG Bailout
Of course, the NY Fed was run by Timmy Geithner this time last year. Good to know the fox has moved up from the hen house to Treasury.
There have been suggestions that the Fed chose to negotiate weakly, Mr. Barofsky said, to give a “backdoor bailout” to AIG’s banks. He said Mr. Geithner and the Fed’s lawyers had denied this, but added that “irrespective of their stated intent,” there was no doubt about the result: “Tens of billions of dollars of government money was funneled inexorably and directly to AIG’s counterparties.”
Source: cnbc.com