Timothy Geithner did what was he was President of Federal Reserve Bank of New York? Well according to this Bloomberg report the NY Fed, led by Mr. Geithner:
told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.
AIG said in a draft of a regulatory filing that the insurer paid banks, which included Goldman Sachs Group Inc. and Societe Generale SA, 100 cents on the dollar for credit-default swaps they bought from the firm. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008.
Make sure you are sitting down when you read this story and if you have high blood pressure that you take your medicine before reading it.
I am not aware of any exceptions in SEC's public disclosure rules regarding hiding the fleecing of U.S. taxpayers or even political embarrassment. This is bad but it continues the pattern of Mr. Geithner's that he worked hard to protect the financial oligarchy during this crisis. But is that the job of the President of NY Fed? If it is, Mr. Geithner did a great job.
But is it the U.S. Treasury Secretary's job to protect the financial oligarchy? Certainly NOT! But that is what is still happening and Mr. Geithner is leading the way. So much for CHANGE!
BTW - naked capitalism has good follow up post to this story: Geithner's Dubious AIG Cover Up.