Geithner will testify on secretive bailout deals

Thursday, January 14, 2010 - 3:28pm

WASHINGTON – Treasury Secretary Timothy Geithner is set to testify before a House probe into his role in deals that sent billions of bailout dollars to Goldman Sachs Group Inc. and other big banks.

Staffers for the House Committee on Oversight and Government Reform say Geithner is confirmed to appear at a hearing Jan. 27 on the bailout of American International Group Inc.

The committee wants to know why the Federal Reserve Bank of New York paid banks to cancel their contracts with AIG and didn't demand concessions. The deals might have cost taxpayers billions more than necessary.

An earlier watchdog report said Geithner approved the decisions as president of the New York Fed.

The staffers spoke anonymously because they are not authorized to discuss Geithner's plans.

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