financialservices.house.gov

Rep Cmte Financial Services
Contact:



Bachus Calls For Hearing To Examine Disparities Relating To AIG's Obligations To Creditors


WASHINGTON, Jul 20 -

- Congressman Spencer Bachus, the top Republican on the Financial Services Committee, wrote to Chairman Barney Frank last week requesting a hearing to inquire into the differences between the government's treatment of creditors and counterparties of American International Group (AIG). 

In the letter, Ranking Member Bachus states, "On several occasions, questions have been raised about the disparity of treatment of regional and small domestic banks as compared to large U.S. banks and foreign counter-parties following the extraordinary Federal Government intervention to supply massive taxpayer support to prevent the collapse of American International Group (AIG)."

Bachus continued, "In public hearings, the response of Secretary Geithner has been that he would review the situation to ensure there was no unfair or disparate treatment. In contrast, his private written responses have relied on legalistic distinctions between loans and counter-party obligations and AIG corporate obligations versus those of its real estate subdivisions."

"It is essential that there be no questions of the fairness and equity of the Government's actions," said Bachus.

NOTE: Click here to view the letter.

###