Commentary: Geithner backtracks on problem with AIG:

11/20/2009 | Wall Street Journal, The

Neil Barofsky, inspector general for the Troubled Asset Relief Program, said in his latest report that the New York Federal Reserve did not believe that AIG's counterparties in credit default swap deals posed a risk to the broader financial system. Barofsky said that saving AIG's counterparties was not the impetus for rescuing the insurer. Timothy Geithner, who was president of the New York Fed at the time, said that in deciding to make AIG's counterparties whole, "the financial condition of the counterparties was not a relevant factor."

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