White House Stands Behind Geithner, Says Tim Was Not Involved In AIG Email Fiasco
It appears Geithner will not be fired after all (for now). From Bloomberg:
Treasury Secretary Timothy Geithner “was not involved” in decisions by the Federal Reserve Bank of New York when it told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks in 2008, White House press secretary Robert Gibbs said.
Geithner, who was head of the New York Fed at the time, “wasn’t party to the decision,” Gibbs said at a White House briefing. Asked if President Barack Obama continues to have confidence in Geithner, Gibbs said, “Of course.”
Republicans and Democrats have called for Geithner to testify about the New York Fed’s effort to limit disclosures by AIG during the height of the financial crisis. Geithner was recused from working on issues involving specific companies at the time because he had been named by Obama as his choice for Treasury secretary, a spokeswoman said yesterday.
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