AIG’s $15.7 Billion Bid for Mortgage Bonds Rejected by N.Y. Fed
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American International Group Inc., the bailed-out insurer, was rebuffed by the Federal Reserve Bank of New York in its bid to repurchase a portfolio of mortgage-backed securities for $15.7 billion.
The New York Fed will instead sell the assets individually and in blocks, the regulator said yesterday in a statement posted on its website. BlackRock Inc., the New York Fed’s investment manager, will issue the first bid list next week, according to the statement.