The Fed's AIG Coverup

In December 2008, at the height of the financial crisis, AIG drafted a regulatory filing that said it would fully repay Goldman Sachs and other banks for $62.1 billion in toxic credit-default swaps—that is, until Timothy Geithner's New York Fed told them to cross it out. The details about the repayment were omitted from the filing, but are now becoming public as emails about the filing have been obtained by Rep. Darrell Issa, the ranking Republican member on the House Oversight and Government Reform Committee. The decision to repay the banks in full, which some have called a "backdoor bailout," was also made by the New York Fed.