The House Oversight and Government Reform Committee planned to issue a subpoena to the Federal Reserve Bank of New York Tuesday demanding documents about payments the collapsed insurance giant American International Group Inc. made to its counterparties.

"This subpoena will provide the committee with documents that will shed light on why taxpayer dollars were used for a backdoor bailout," the panel's chairman, Rep. Edolphus Towns, said in a press release.

The subpoena came after the special inspector general for the Troubled Asset Relief Program denied a request by Republicans on the panel to hand over documents related to the Fed's decision to let AIG pay its counterparties in full. The inspector general said the Fed had blocked his office from revealing the details.

"We will work with the committee to provide relevant information as appropriate," a New York Fed spokeswoman said.

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