Fox Sues Treasury Over Use Of TARP Funds

The lawsuit comes as the Treasury fails to provide information requested on November 25 by Fox on actual data of use of the bailout funds for American International Group and The Bank of New York Mellon. Additionally on December 1st Fox sought similar data on the bailout funds for Citigroup Inc.

Kevin Magee, Executive Vice President, FOX News commented, “The Treasury has repeatedly ignored our requests for information on how the government is allocating money to these troubled institutions. In a critical time like this amidst mounting corruptions and an economic crisis, we as a news organization feel it’s more important than ever to hold the government accountable.”

The Treasury Department bought $40 billion in newly issued preferred shares of AIG in November as part of an expanded and modified $152.5 billion rescue plan. The deal also included $60 billion in loans and $52.5 billion to purchase troubled assets.

The Treasury Department bought $45 billion of Citigroup's preferred stock, and also agreed to provide guarantees on $306 billion in troubled assets held by the bank. The department invested $3 billion in Bank of New York Mellon, and hired the firm as the master custodian for the $700 billion to be spent on the Troubled Asset Relief Program.

Steven Mintz, Esq. of Mintz & Gold LLP, and legal counsel for the network added, “Despite the several requests for expedited information filed by FBN, it has become apparent that the Treasury will not cooperate without mounting legal pressure. Therefore, we have filed a complaint in the Federal Court in New York and ask the Court to make the Treasury provide the information sought by the journalists at FBN.”

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