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Member, Beacon International Group, Ltd.
WASHINGTONThe House Financial Services Committee’s top Republican member has asked the panel’s chairman to convene a hearing to investigate disparities in the treatment of creditors and counterparties of American International Group Inc.
“On several occasions, questions have been raised about the disparity of treatment of regional and small domestic banks as compared to large U.S. banks and foreign counterparties following the extraordinary federal government intervention to supply massive taxpayer support to prevent the collapse of American International Group,” wrote Rep. Spencer Bachus, R-Ala., to the committee’s chairman, Rep. Barney Frank, D-Mass., in a letter released Monday.
In the letter, Rep. Bachus noted he had questioned Treasury Secretary Timothy Geithner about disparities during previous hearings before the panel.
“In hearings before the Financial Services Committee, I have questioned Secretary Geithner and AIG management about this issue,” Rep. Bachus wrote. “I have also written to Secretary Geithner regarding my concerns over the inequitable treatment of smaller domestic institutions, which suffered significant losses from their dealings with AIG, while the firm’s larger counterpartiesmany of them headquartered overseaswere made whole.”
Rep. Bachus requested that Rep. Frank hold a hearing at which representatives of the Treasury Department, AIG and “smaller U.S. banks that have not been paid by AIG and its subsidiaries” would appear.
No hearing has been set.