Former U.S. Treasury Secretary Henry Paulson and former New York Federal Reserve Chairman Stephen Friedman will testify at a congressional hearing into bailed-out insurer AIG's payments to banks on Wednesday, a committee aide said on Tuesday.

Jenny Thalimer Rosenberg, a spokeswoman for the U.S. House of Representatives Oversight and Government Reform Committee, said Paulson and Friedman had accepted an invitation to testify on the matter from the panel's chairman, Rep. Edolphus Towns.

Paulson and Friedman were key figures in American International Group's government bailout in the fall of 2008, along with current Treasury Secretary Timothy Geithner, who was president of the New York Fed at that time. Geithner also will appear before the panel.

(Reporting by David Lawder; Editing by James Dalgleish)