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Member, Beacon International Group, Ltd.
WASHINGTON—The chairman of the House Oversight and Government Reform Committee said Tuesday that he plans to issue a subpoena to the Federal Reserve Bank of New York for documents related to payments made by American International Group Inc. to counterparties in credit default swaps.
“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,” Rep. Edolphus Towns, D-N.Y., and chairman of the committee, said in a 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.”
Rep. Towns said earlier that he intends to hold a hearing next week on financial disclosure advice that the Federal Reserve Bank of New York gave AIG at the height of the financial crisis.
The committee said last week it would ask Treasury Secretary Timothy Geithner, who served as president of the FRBNY when the government began its financial assistance to AIG in 2008, and Thomas Baxter, who has served as general counsel and executive vp of the legal group at the FRBNY since 1995, to testify.