July 31, 2012
Note: More of our look back at the AIG bailout, this time with a Bernanke focus.
Sen. Jim Bunning on Squawk Box.
Liesman gets torched. Details on the Fed mole. Evidence of substantial conflict within the Fed over the decision to bailout AIG. Kernen and the Senator laugh it up. Beginning at the 7:20 mark, Bunning makes reference to internal Fed emails:
“Bernanke’s staff did not agree with him on bailing out AIG. I am talking about an email that he sent his staff, after his staff recommended that the Federal Reserve not touch AIG, just like Lehman Brothers.”
A Republican senator said Tuesday that documents showing Federal Reserve Board Chairman Ben Bernake covered up the fact that his staff recommended he not bailout AIG are being kept from the public. And House Republican Darrell Issa charged that a whistleblower had alerted Congress to specific documents that provide “troubling details” of Bernanke’s role in the AIG bailout.
Sen. Jim Bunning said on CNBC that he has seen documents showing that Bernanke overruled such a recommendation. If that’s the case, it raises questions about whether bailing out AIG was actually necessary, and what Bernanke’s motives were.