Should Davis Polk Join Tim Geithner In Providing AIG Testimony Before Congress?
Is it time to summon Davis Polk And Wardwell to provide testimony before Congress? New disclosure from Huffington Post seems to indicate so:
The Fed has claimed that it had little control and that AIG made the decision to hide relevant details, but reports have emerged in recent weeks casting that claim in doubt.
And a newly disclosed email increases the doubt substantially. All
"significant communications," a senior New York Fed official writes in
the email, "should be run by DPW first." DPW is Davis Polk &
Wardwell, the New York Fed's law firm.
The New York Fed's counsel, Richard Charlton, laid out the situation
in an email to DPW's Marshall Huebner on September 19, 2008:
"Marshall - Sarah Dahlgren" -- New York Fed's AIG point person --
"and I called AIG's GC this morning at 7:15 to alert her to the
problems. She or their lawyers will be in contact with you asap. We
also told her that future SEC filings, press releases, and other
significant communications should be run by DPW first."
"Clearly, the New York Fed weren't just casual observers here," said
Rep. Darrell Issa (R-Calif.) "They were calling the shots in a
command-and-control type of way and everything that happened, including
the efforts to stifle public disclosure, was done so at their behest."
We have long claimed that in order to glean a full perspective on the events involving AIG and the Fed, it is critical to provide DPW with the opportunity to present their views on the matter. The last thing we need, is for AIG, or the Fed for that matter, to pull the Bank Of America defense, where everything ends up being the lawyers' fault.