|
 |
 |
|
White House: Geithner 'not involved' in latest AIG flap
The White House claimed Friday that Treasury Secretary Timothy Geithner did not play a role in alleged improper actions government officials took in the bailout of insurance giant American Insurance Group.
Democratic and Republican lawmakers have called on Geithner to testify on whether or not Federal Reserve officials improperly pressured AIG to not disclose how taxpayer bailout funds were used in 2008.
Geithner has come under renewed criticism this week following the accusations regarding Fed officials.
But Gibbs stressed multiple times that Geithner -- who was head of the New York Fed at the time -- was not party to the e-mails regarding the flap.
"These decisions did not raise to his level at the Fed," he said. "There are not e-mails that involve Secretary Geithner in this instance."
Gibbs echoed the words of Treasury spokeswoman Meg Reilly who said Friday that he had recused himself during those negotiations.
Regardless House Financial Services Committee chairman Barney Frank (D-Mass.) and House Oversight and Government Reform Committee ranking member Darrell Issa (R-Calif.) are among lawmakers calling on Geithner to testify.
Gibbs later said that Geithner would likely testify if called to the Hill, but not necessarily about the AIG incident.
"I’m sure if Mr. Frank schedules a hearing for Secretary Geithner -- when the Financial Services Committee generally has hearings with the Treasury Secretary, he goes to those hearings," he said.
The AIG bailout remains one of the most controversial aspects of the government's effort to buoy the financial sector after its collapse. Multiple complaints about bonuses paid out to AIG executives and the amount AIG was paid during the bailouts.
When asked if Geithner still enjoyed the full confidence of the White House, Gibbs replied, "Of course."
This post was updated at 3:09 p.m.
Most Viewed RSS Feed »
