No Role in Non-Disclosure
“We had no effective legal means to step in and prevent default (at AIG) … without helping this firm meet all its legal obligations.”
—U.S. Treasury Secretary Timothy Geithner saying the bailout of insurer AIG was not meant to help bank counterparties and that he had no role in the decision not to disclose payments made to banks. (Reuters)
Back-Door Bailout
“The back-door bailout gave $62 billion to a number of U.S. and foreign banks. It wasn’t debt on their balance sheets, they didn’t have to borrow it, they didn’t have to pay interest on it. Christmas came early.”
—Former AIG CEO Maurice “Hank'” Greenberg said questions about the government’s 2008 rescue of the insurer could be the catalyst for an overhaul of the bailout.(Reuters)
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