House Oversight and Government Reform Chairman Edolphus Towns said Tuesday he has subpoenaed the Federal Reserve Bank of New York for documents about the bailout of American International Group during Treasury Secretary Geithner's tenure as the bank's president in 2008.
"To help the committee's investigation of payments made by AIG to its counterparties, I am issuing a subpoena today to the Federal Reserve Bank of New York," Towns said in a statement. "This subpoena will provide the committee with documents that will shed light on how and why taxpayer dollars were used for a backdoor bailout."
Towns' committee is investigating the diversion of federal money for the AIG bailout to other banks, including Goldman Sachs Group Inc., where Geithner's predecessor as Treasury secretary, Henry Paulson, was previously the CEO.
The committee has been investigating e-mails from New York Fed lawyers telling AIG not to disclose details about the deal. The e-mails were released last week by Oversight and Government Reform ranking member Darrell Issa.
Issa asked Towns to subpoena the New York Fed after the Fed blocked a separate request for documents.