Otherwise you cannot assured Tim Geithner

The terms of the rescue of AIG's which insult America and elected marry without complex wave of discontent which shakes the country against Wall Street. The members of the "oversight committee" House representatives were therefore very reassembled yesterday against Tim Geithner, Secretary to the Treasury and former President of the Federal Reserve of New York. The purpose of the hearing was to assess the responsibility of the latter in terms of the rescue of AIG, which cost taxpayers more than 180 billion dollars.

It is in particular, following the disclosure of thousands of documents to the Congress, including emails, to determine if he had voluntarily chosen to hide to the public and the Securities and Exchange Commission, the amount awarded to the counterparties of the insurer and the identity of the latter. A report of the Inspector General of the Troubled Assets Relief Program, Neil Barofsky, published in November 2009, showed that 27.1 billion of public money had been paid to 16 banks (see below), including foreign banks to compensate them. Among them, Goldman Sachs, which has been more than once the target parliamentarians attacks yesterday.

On the defensive, sometimes moved (or angry), Tim Geithner has defended the rescue of AIG. "People think that it is unfair to save the banks but cannot see economic recovery without financial system," he said. According to him, it was the only way to prevent a catastrophe which would have led to a depression. Under heavy fire of the issues of the elect, Tim Geithner reiterated not asking to keep these secret negotiations because he took field to its functions as soon as November 24 after he was chosen as Secretary of the Treasury by Barack Obama. But elected officials bitterly criticized him to have reimbursed the counterparties to 100, without negotiating.

"Could not negotiate.

"If you accept the bankruptcy, you can obtain a discount." "Otherwise, you cannot", assured Tim Geithner. And to explain that the counterparties were entitled to be paid what it owed them. "At this time, we tried to recreate confidence in the financial system." If we had left believe it could go bankrupt, this would have been against our goal. Could not negotiate. "AIG position was deteriorating quickly and his score would be lowered," explained Tim Geithner.

He returned to the fundamental dilemma in which the Government was faced with the fall of 2008: come to the rescue of the financial institutions to prevent a collapse of the system has led, inevitably, the belief that the Government would intervene whatever happens. At the time, it was no longer in a position to negotiate. The Fed was only available firefighter and she had no authority to seize AIG and the dismantling, he recalled. Henry Paulson, former Secretary to the Treasury of George Bush, who testified on shortly after, he also pointed out that they had worked for the better in a very chaotic situation.

The controversy is not over. The Government asked Neil Barofsky to investigate the Federal Reserve of New York. He has also testified yesterday before the Committee.