AIG bail-out defended by Geithner

Timothy Geithner has defended his actions in the bail-out of AIG in front of a congressional panel in the US.

The Treasury secretary, who was the head of the New York Federal Reserve when the insurance firm was saved two years ago, said that he did not take part in deciding on the financial aspects of any deals.

’I was not involved in decisions about what to disclose about the individual transactions or the names of counterparties,’ he remarked.

The total cost of keeping the company aloat came to over $180 billion (£110 billion) and Mr Geithner added that he has ’enormous trust and confidence’ in the ’integrity and judgment’ of the people who did opt to give the firm government funding.

However, he drew criticism for his role in the deal, with republican Darrell Issa, the committee’s representative for California, stating that many people ’have a hard time’ believing Mr Geithner’s comments.

AIG was one of a number of US financial institutions that received government assistance at the height of the financial crisis, with Bank of America also getting aid.ADNFCR-2318-ID-19583723-ADNFCR