The House Oversight Committee will issue a Subpoena to the New York Federal Reserve due to it's 100% payout of AIG Credit Default Swaps and trying to stop AIG from disclosing this via their 10-k release.
“To help the committee’s investigation of payments made by AIG to its counterparties, I am issuing a subpoena today to the Federal Reserve Bank of New York,” Edolphus Towns, the New York Democrat who runs the Oversight and Government Reform Committee, said in an e-mailed statement. “This subpoena will provide the committee with documents that will shed light on how and why taxpayer dollars were used for a backdoor bailout.”
Towns’ attempt to force the New York Fed to provide documents comes after the ranking Republican on the committee, Darrell Issa of California, obtained e-mails showing the regulator pushed AIG to withhold information from public filings about payments to banks. The New York Fed in November declined to provide some documents Issa was seeking without a subpoena, Issa said in a letter to Towns today.
Now, how serious is this in terms of doing anything? It seems even when evidence is overwhelming on screwing the taxpayer or corporate welfare nothing ever happens.
This is in reference to the emails which show Geithner tried to stop AIG from disclosing the risk, debt and payout of the CDSes to counterparties.