This move follows last week's scandal in which newly released emails have shown that under Geithner's leadership, Federal Reserve Bank of New York lawyers told AIG to withhold details from the public about its payments to banks during the financial crisis.
“It appears that the New York Fed deliberately pressured AIG to restrict and delay the disclosure of important information,” said Representative Darrell Issa, California Republican and ranking member of the House Oversight and Government Reform Committee, who obtained the emails. Citizens “deserve full and complete disclosure under our nation’s securities laws, not the withholding of politically inconvenient information.”
The emails include a draft filing in which it is apparent that AIG was ordered by the New York Fed to pay banks, which included Goldman Sachs, 100 cents on the dollar for credit-default swaps they bought from the firm. AIG removed the language when the filing was publicized. "The decision to pay the banks in full may have cost AIG, and thus taxpayers, at least $13 billion, based on the discount the insurer was seeking," according to Bloomberg News.
A Treasury spokesperson claimed that Geithner himself had no role in the decisions, saying “he was recused from working on issues involving specific companies, including AIG,” after being nominated for Secretary of the Treasury on November 24, 2008.