Citigroup Buys $1.7 Billion of Mortgage Debt from Fed

May 24 (Bloomberg) -- Citigroup Inc. bought $1.7 billion of mortgage-tied securities from the Federal Reserve Bank of New York’s Maiden Lane III portfolio, the district bank said today on its website.

The auction of debt assumed in the U.S. bailout of American International Group Inc. in 2008 had been scheduled for May 17, before the New York Fed announced a delay.

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To contact the reporter on this story: Jody Shenn in New York at jshenn@bloomberg.net

To contact the editor responsible for this story: John Parry at jparry5@bloomberg.net