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Geithner: Right to pay AIG counterparties at par

January 12th, 2010

“Absolutely,” Mr. Geithner replied to a question from a CNBC television interviewer, though he specified that he had not been involved in a New York Federal Reserve bank decision for AIG to make the payments at par.

“We had no effective legal means to step in and prevent default (of AIG) … without helping this firm meet all its legal obligations,” he added.


For reprints of this story, please contact Lauren Melesio at 212-210-0707 or email lmelesio@crain.com

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Tags: Aig, Aig Counterparties
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