NY Fed Lawyer: Geithner Didn't Need to Know About Goldman Sachs' AIG Payoff

Editor's note: The NY Fed "legal" lackey is claiming he did not find it "relevent to Geithner's interests" during his time at the NY Fed to bring to his attention that the AIG bailout would involve a 100% counterparty payoff which went - as we all know - partially to Goldman Sachs in the form of a dollar for dollar $13 billion payoff. Sounds like a winner to me! - JDA

Oh Timmy, what are we going to do with you?

Bloomberg:

The Federal Reserve Bank of New York may be compelled to hand over documents related to American International Group Inc.’s government bailout after the chairman of a House oversight committee said he will issue a subpoena.

Edolphus Towns, the New York Democrat who runs the Oversight and Government Reform Committee, said in a statement that he will issue a subpoena today to get New York Fed records concerning the decision it made to fully reimburse AIG’s partners. Banks including Goldman Sachs Group Inc. and Societe Generale SA were among beneficiaries of AIG’s rescue, called by lawmakers a “backdoor bailout” for financial firms.

“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 said in his statement. Jack Gutt, a spokesman for the New York Fed, didn’t immediately return a call seeking comment.

Jr Deputy Accountant is happy to report that Jack Gutt has never returned her emails either though sending incendiary I Saw What You Did There emails doesn't necessarily warrant comment. It's OK, I still saw what you did there.

Read the rest via Jr Deputy Accountant but, uh, you might want to have your barf bag ready before you click.