The news yesterday that Timothy Geithner may have helped cover up AIG’s financial problems is sparking a House investigation:
A House committee is planning to grill Treasury Secretary Timothy Geithner about his role in the massive bailout of failed insurer American International Group Inc.
The House Oversight Committee is responding to news that key details about AIG’s bailout were suppressed by the Federal Reserve Bank of New York while Geithner was its president.
A growing chorus of lawmakers says Geithner must explain his involvement in deals that diverted billions from AIG’s bailout to Goldman Sachs and other big banks.
New York Democrat and committee Chairman Edolphus Towns says the hearing will examine the rise and fall of AIG and its business partners.
Given the growing chorus of people calling for Geithner to resign, this investigation will probably end up sealing his fate.