Congressman Roy Blunt is urging the Financial Services Committee to schedule a hearing to examine a report that the Federal Reserve Bank of New York was unprepared to deal with bailout money AIG received last year.
Blunt said the committee must investigate before legislation regarding further AIG-style bailouts are considered.
From BLOOMBERG: The inspector general’s report “paints a devastating picture of government regulators ill-prepared to deal with the failure of complex financial institutions like AIG, and who failed to fight for what was in the best interest of the taxpayers," Blunt and Bachus said in the letter today.
"Without a hearing to fully explore the decisions that led to the bailout of AIG and its counterparties, we are concerned that efforts to extend and expand TARP, as well as legislation currently being considered by the Financial Services Committee to codify a permanent bailout authority, will only lead to many of the same mistakes that have cost taxpayers hundreds of billions of dollars," reads Blunt's letter.
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