Sen. Bunning Asks SEC to Investigate NY Fed

Senator Jim Bunning has asked the SEC to launch an investigation into whether AIG withheld material information under the advice of the New York Federal Reserve.

RTTNews reports that Bunning’s request comes on the heels of the release of e-mails from the New York Fed that told AIG to drop a disclosure from a December 2008 filing that showed AIG paid banks 100 cents on the dollar for credit-default swaps they purchased from AIG.

Treasury Secretary Timothy Geithner was president of the New York Fed at the time the emails were written. According to RTTNew, Geithner and New York Fed General Counsel Thomas Baxter have been asked to testify about AIG’s disclosures.

Read the RTTNews article