Press Releases

Frank Asks Secretary Geithner and Chairman Bernanke to Investigate AIG Counterparties

f t # e
Washington, DC, April 1, 2009 | comments

House Financial Services Committee Chairman Barney Frank (D-MA) today wrote to Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke asking them to look into claims made by Rep. Spencer Bachus (R-AL) regarding AIG’s payments to its counterparties.

Chairman Frank wrote in his letter: “I do not know what basis there is for the point he [Rep. Bachus] makes, but it is a serious issue and must be addressed.  Clearly, any discrimination against American owned financial institutions compared to the treatment being received by foreign owned institutions would be unacceptable to the Congress, and I believe to the American public.”

Click here for the text of Reps. Frank’s and Bachus’ letters

 

April 1, 2009

The Honorable Ben S. Bernanke:
The Honorable Timothy Geithner:
 

I’m enclosing two letters which I received from the senior Republican on the Financial Services Committee, Mr. Bachus.  There were two letters because there was apparently some confusion in communication between him and his staff as to whether or not he wanted to request a hearing right away.  That is why I received a second letter amending his first letter.

I do not know what basis there is for the point he makes, but it is a serious issue and must be addressed.  Clearly, any discrimination against American owned financial institutions compared to the treatment being received by foreign owned institutions would be unacceptable to the Congress, and I believe to the American public.  I understand the importance of honoring foreign obligations because of the need for us to continue to receive a flow of foreign investment.  But differential treatment in favor of foreign investors does not seem to me to have any basis whatsoever in the law, in policy, and certainly not in the need for a public acceptance of your actions.  I therefore ask you to look into this situation thoroughly.  If indeed there are cases where this is happening, then I believe a hearing before the Committee would be appropriate, unless the actions in question, should they exist, were promptly remedied.

 

BARNEY FRANK
 

###

f t # e



Subscribe for Updates

Twitter Feed