Back in the United States, Treasury Secretary Timothy Geithner faced down calls for his resignation Thursday in an appearance before the Congressional Joint Economic Committee. Geithner has come under new scrutiny this week over his role in the $85 billion bailout of the insurance giant AIG during his tenure as head of the New York Federal Reserve Bank. A new government audit found the New York Fed refused to use its considerable leverage to wring concessions from AIG’s trading partners, resulting in payments of full market value for assets underlying credit default swaps written to Goldman Sachs and other banks. On Thursday, Geithner had a testy exchange with Republican Congress member Kevin Brady.

Treasury Secretary Timothy Geithner: “You gave this president an economy falling off the cliff, values of Americans’ savings cut almost in half, millions of Americans out of work — again, the worst financial crisis we’ve seen in a generation.”

Rep. Kevin Brady: “Remind me — remind me, Mr. Secretary, what post were you holding when President Bush left office? Just remind me what economic post you were holding.”

Geithner: “I was the president of the Federal Reserve Bank of New York. Great honor and privilege for me to serve at that time.”

Brady: “Does the Federal Reserve Bank have any oversight over the economy or any input into its performance?”

Geithner: “The Federal Reserve, established by Congress, is responsible for trying to make sure that we keep inflation low and stable over time.”

Brady: “And are you shirking responsibility for the design of the bailout or its role in the economy?”

Geithner: “No. The actions the Congress made possible — too late — were absolutely necessary to breaking the back of this financial panic.”