From Market Watch:
Rep. Ed Towns, D-N.Y., chairman of the House Oversight and Government Reform committee, said the bailout “creates an air of suspicion and distrust among the American people.” He expressed concerns about the decision by the New York Fed to try to keep the names of derivative counterparties of AIG receiving taxpayer bailouts private. Under pressure from Congress, the names of derivative counterparties were eventually disclosed.
“The New York Fed argued that disclosing the names of the counterparties would somehow injure AIG,” Towns said. “In fact, when the information was finally released under pressure from Congress, nothing happened…But it did have an effect on the credibility of the Federal Reserve and it called into question the Fed’s penchant for secrecy.”
The Federal Reserve’s use of its extraordinary powers to assist AIG has angered many members of Congress of both political parties. Lately, lawmakers have expanded their criticism of the Obama administration’s bailout efforts, which they contend resulted in expanded benefits to Wall Street at the expense of Main Street.
“The government gave Goldman Sachs more than it had any right to expect, but at the same time no financial relief was given to millions of Americans facing a foreclosure crisis,” said Rep. Dennis Kucinich, D-Ohio. Link to article…