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Geithner in the Crosshairs? Criminal Charges on Table for AIG Cover-up, TARP Watchdog Says

Posted Apr 28, 2010 03:48pm EDT by Vince Veneziani in Newsmakers, Banking
Related: AIG, XLF, SKF, FAZ, ^DJI, ^GSPC, JPM

From The Business Insider, April 28, 2010

Neil Barofsky, The Special Inspector General for TARP oversight, better known as SIGTARP, says criminal or civil charges are still on the table in the AIG cover-up, according to a long profile at Bloomberg.

In the eye-opening piece, Barofsky talks about how he got a crappy basement office in the Treasury building and likens its foul smell to relations between the Treasury department and himself.

Since Barofsky's job is to watch over TARP funds and how they're used, it should come as no surprise that when $700 billion is on the line, funds are bound to be misappropriated.

So what's the essence of Barofsky's beef? A few things:

  • * "Barofsky's most recent broadside came on April 20, when a SIGTARP report labeled a housing-loan modification program funded with $50 billion of TARP money as ineffectual."
  • * He has also criticized Tim Geithner in reports for his handling of the AIG bailout back when he was Chair of the NY Fed.
  • * Mortgage deals involving CDOs similar to the ABACUS deal.
  • * How both Obama and Bush handled the financial crisis.

 

So now the SEC and Barofsky are working together to comb over the details and review whether or not filing charges is appropriate, according to Bloomberg: Geithner better have one eye over his shoulder.

 

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