The New York Federal Reserve under Tim Geithner “severely limited its ability” to extract concessions from AIG’s counterparties in talks that resulted in $27.1bn of public money being transferred to banks including Société Générale and Goldman Sachs, according to a report by Neil Barofsky, special inspector general of the government’s Tarp scheme. Despite criticism of the team led by Geithner, now Treasury secretary and last year president of the NY Fed, the report fails to find evidence that the institution was negligent in not demanding “haircuts” from the counterparties to AIG’s credit default swap contracts.

This entry was posted by Gwen Robinson on Tuesday, November 17th, 2009 at 4:32 and is filed under Capital markets, People. Tagged with aig, goldman sachs, New York Federal Reserve, SocGen. Edit this entry.