New York Federal Reserve Accused over AIG Bailout and Document Disclosure Issues (AIG, GS)

Neil Barofsky, the special inspector general overseeing the Troubled Assets Relief Program (TARP), is probing the New York Federal Reserve over its disclosure of documents related to bailouts of American International Group Inc, (NYSE: AIG) and its counterparties.

The New York Federal Reserve is accused of withholding information related to the $27.1 billion pay out to AIG and its counterparties from the Securities and Exchange Commission (SEC). The New York Fed said that the specific details about the bailout need not be mentioned to the SEC. However, AIG revealed that TARP money was also received by Société Générale and Goldman Sachs (NYSE: GS). Barfosky also accused the New York Fed of withholding documents from him during an earlier audit of payments. These two accusations aimed at the New York Federal Reserve have now become a developing political issue.