Scandals

NY Fed Tried to Hide AIG Details

One sign that the bankers handling the controversial AIG bailout at the Federal Reserve Bank of New York knew there could be trouble: The New York Fed originally kept details of the AIG rescue secret by treating them like a request to protect national security, according to emails obtained by Reuters. The Fed requested the SEC grant “special security procedure,” and the SEC obliged, letting just two of its employees review the documents and agreeing to store the documents "in a special area where national security related files are kept." Treasury Secretary Timothy Geithner, who led the New York Fed at the time of the deal, will testify before Congress on Wednesday.