Monday, November 16, 2009
It is reported this evening that the New York Fed (under Timothy Geithner), in its rush to bail out AIG last November, "refused to use its considerable leverage" to negotiate and obtain concessions from AIG's counter-parties. As a result, AIG's trading partners (including Goldman) got paid in full with taxpayer dollars. The report, prepared by Neil Barofsky, the special inspector general for TARP, is due out tomorrow. NYTimes, Report on Inquiry Faults Handling of A.I.G. Bailout; WSJ, Audit Is Critical of N.Y. Fed in AIG Bailout.