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TARP IG opens new probes of AIG

by Liberty Pulse
12/08/2011
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TARP IG opens new probes of AIG

The government watchdog of the Troubled Asset Relief Program has opened two new investigations as a result of documents obtained as part of a House investigation into the insurance giant AIG.

Neil Barofsky, the special inspector general of TARP, will probe whether there was any misconduct relating to the disclosure – or lack thereof – of AIG fully paying out pricey insurance contracts to big banks after receiving a government bailout, according to the inspector general’s prepared testimony obtained by POLITICO.

Secondly, Barofsky will investigate the “extent of the Federal Reserve’s cooperation” during an internal audit of the bailout program. A subpoena by the House Oversight and Government Reform committee produced documents not obtained by the special inspector general as part of its probe.

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