New York Fed Sells $1.3 Billion Worth of MBS from AIG Bailout
April 07, 2011 6:11 AM
The New York Fed has sold $1.3 billion worth of subprime mortgage-backed securities (MBS) that it had obtained through the bailout of American International Group (NYSE: AIG).
According to the New York Times Dealbook, "The mortgage-backed securities are part of an entity called Maiden Lane II, one of several created during the crisis as vehicles for the questionable assets of feeble institutions. The first was formed to help JPMorgan take over Bear Stearns in the spring of 2008."
42 of 52 bonds on the docket were sold at the auction, with $1.5 billion worth available.
The Fed said on March 30 that it would sell the assets "in segments over time as market conditions warrant through a competitive sales process.”
The sale was managed by BlackRock Solutions.
Shares of AIG closed down $0.12 on Wednesday, to $34.86.
