WASHINGTON, Jan 19 (Reuters) - The New York Federal Reserve bank on Tuesday denied that it had pressured insurer American International Group not to make disclosures about payments it was making to counterparties.
AIG, which received a $180 billion government bailout, had paid tens of billions of dollars to big banks, paying them 100 cents on the dollar to liquidate credit default swaps it sold them.
'Some have...suggested that the FRBNY pressured AIG not make required disclosures about material elements of the Maiden Lane III disclosures, including that the counterparties received par value,' The New York Fed said in a lengthy memo posted on its website.
'This is...incorrect,' the New York Fed said in a statement that put up a defense of its actions ahead of a Congressional hearing next week on the payments that AIG made to banks holding credit default swaps it had written.
(Reporting by Mark Felsenthal and Glenn Somerville; Editing by Leslie Adler) Keywords: AIG/FED DISCLOSURE (glenn.somerville@thomsonreuters.com; +1-202-898-8377; Reuters Messaging: glenn.somerville.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
AIG, which received a $180 billion government bailout, had paid tens of billions of dollars to big banks, paying them 100 cents on the dollar to liquidate credit default swaps it sold them.
'Some have...suggested that the FRBNY pressured AIG not make required disclosures about material elements of the Maiden Lane III disclosures, including that the counterparties received par value,' The New York Fed said in a lengthy memo posted on its website.
'This is...incorrect,' the New York Fed said in a statement that put up a defense of its actions ahead of a Congressional hearing next week on the payments that AIG made to banks holding credit default swaps it had written.
(Reporting by Mark Felsenthal and Glenn Somerville; Editing by Leslie Adler) Keywords: AIG/FED DISCLOSURE (glenn.somerville@thomsonreuters.com; +1-202-898-8377; Reuters Messaging: glenn.somerville.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.