Treasury Secretary and former New York Fed. President, Timothy Geithner denied involvement in the decision to withhold important details in the government bailout of American International Group Inc.
Geithner, who many suspect overspent on the bailouts, denies his involvement, informing a congressional panel that he discontinued involvement in monetary policy and management decisions at the Fed. after being nominated for the position of Treasury Secretary.
The House Committee on Oversight and Government Reform has doubts about Geithner’s claims, particularly in light of his continuous support of the bailout and insistence alternative solutions would have been “catastrophic.”
The imperative nature of a bailout was widely accepted if not entirely embraced by many; however, the sum of the support is what many are taking issue with. AIG received an aid package from the Federal government in excess of $180 billion. The committee is taking issue with the potential for overcompensation with business partners and efforts by the government to conceal particulars of the payments.
"I played no role in those decisions," Geithner claims.
Also claiming innocence is current Federal Reserve Chairman Ben Bernanke who also claims to have been only indirectly involved with such negotiations insisting they were dealt with, almost exclusively, by the New York Fed.
Both Bernanke and Geithner have been under fire for the bailouts though both insist they had no role in deciding upon the key details which have angered tax payers and government committees.
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