TARP Inspector General Reveals AIG Bailout Probe

Law360, New York (January 26, 2010, 6:46 PM EST) -- The watchdog for the Troubled Asset Relief Program has launched a probe into disclosures related to American International Group Inc., amid criticism that the Federal Reserve Bank of New York's loans to AIG amounted to a "backdoor bailout" for its counterparties.

Neil Barofsky, TARP's special inspector general, revealed the new AIG investigation in prepared testimony that he will present on Wednesday at a hearing before the U.S. House of Representatives' Committee on Oversight and Government Reform.

The probe came in response to a series of e-mails...
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