NEW YORK—The Federal Reserve Bank of New York said today that it welcomes Federal Reserve Chairman Ben Bernanke’s call for a comprehensive review by the U.S. Government Accountability Office (GAO) of all aspects of the Federal Reserve’s involvement in American International Group, Inc. (AIG). The New York Fed also announced that it has delivered detailed records requested by the House Committee on Oversight and Government Reform related to AIG.
“We are in favor of a full and objective review of our actions and look forward to the opportunity to document for the public and members of Congress our involvement in AIG. All of the Federal Reserve’s actions regarding AIG were undertaken to protect the American people from an even more severe economic downturn and to safeguard U.S. taxpayers’ interests in the company,” said Federal Reserve Bank of New York President William C. Dudley.
“We are confident that a comprehensive GAO review and the documents we have provided to Congress will clarify the government’s role in AIG and underscore the importance of the intervention,” Mr. Dudley said.
The New York Fed has also posted a memorandum on its website regarding its participation in the preparation of securities disclosures by AIG relating to Maiden Lane III, a facility created in November 2008 to address AIG’s increasing liquidity strains.