CORRECTED – CORRECTED-US bailout watchdog probes NY Fed on AIG disclosure

(Corrects to delete extraneous quote in last paragraph, which
was not part of testimony)

WASHINGTON, Jan 25 (BestGrowthStock) – A U.S. bailout watchdog has
launched two new investigations into the New York Federal
Reserve Bank’s actions on insurer AIG’s (AIG.N: ) disclosure of
payments to banks after its 2008 rescue, excerpts of prepared
congressional testimony showed on Monday.

Neil Barofsky, the special inspector general of the
Treasury’s $700 billion Troubled Asset Relief Program, said he
would launch a probe into whether there was any misconduct
relating to public disclosure of the $62.1 billion paid to
retire credit default swaps with banks.

Barofsky announced the investigation in excerpts of
prepared testimony to the U.S. House of Representatives
Oversight and Government Reform Committee obtained by Reuters.
He is among witnesses due to testify on the AIG matter before
the panel on Wednesday.

Also appearing at the hearing will be U.S. Treasury
Secretary Timothy Geithner, who ran the New York Fed at the
time of the American International Group bailout in 2008 and
Thomas Baxter, the New York Fed’s general counsel.

Barofsky said he also would launch a second probe into the
New York Fed’s cooperation with a prior audit conducted by his
office into the AIG payments to U.S. and foreign-owned banks.

Penny Stocks

(Reporting by David Lawder; Editing by Valerie Lee)

CORRECTED – CORRECTED-US bailout watchdog probes NY Fed on AIG disclosure