“ Darrell Issa released a collection of e-mails between AIG and the new York Fed.
Issa pushed for an investigation of the matter, and for records
and e-mails from the Fed to be subpoenaed.
Rep. Edolphus Towns, Chairman of the Home Oversight and Authorities Reform Committee, issued subpoenas for the data
and scheduled hearings for late January. In November 2009,
Neil Barofsky, the Treasury Division Inspector General answerable for oversight of TARP funds, issued a report important
of using $62.1 billion of government funds to redeem derivative contracts held by several large banks which AIG had insured towards losses.
The bank additionally settled for US$18m within the related Libor scandal and
EUR 33m for the Euribor fee scandal (relative to different banks a small amount).
The banks acquired face value for the contracts though their market worth
on the time was much decrease. Throughout his time at the brand new York Fed and
early in his tenure as Treasury Secretary, Geithner's aides
had closely handled AIG on compensation points, though Geithner indicated he was not aware of AIG's plans for bonus
funds until March 10, 2009. On March 11, 2009, Geithner referred to as Ed Liddy, the AIG chief, to protest the bonus payouts and request that the
contracting containing the bonuses be renegotiated. ”