Former top regulator Timothy Geithner defended terms of the US gov’t’s bailout of AIG, saying Wednesday that the insurance giant’s exceptionally risky behavior had caused losses that called for strict treatment.
It could be an awkward reunion. Three top former government leaders who devised the 2008 financial bailouts are set to testify this week in a lawsuit over the government’s rescue of the insurance giant AIG.
Treasury Secretary Timothy Geithner is ready to move on, and Obama’s Chief of Staff Jacob Lew, former director of the Office of Management and Budget (OMB), is the likely replacement.