US officials sought ‘national security’ clause to keep bailout details secret

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By IAN ALLEN | intelNews.org |
US officials in charge of regulating securities exchanges sought to apply a ‘national security’ clause to information relating to the government’s bailout of giant insurance company American International Group (AIG). Emails obtained by Reuters show that, in November of 2008, the New York Federal Reserve (NYFR), which administered the bailout, collaborated with AIG in requesting that US Securities and Exchange Commission (SEC) officials apply “special security procedures” to shield bailout-related information from public scrutiny. Instead of dismissing the –possibly illegal– request, SEC officials advised NYFR and AIG to publicly file heavily redacted versions of the documents in question, and request “confidential treatment” for the redacted portions, citing ‘national security’ clauses. Read more of this post