Fed Sells $6.2 Billion of Bonds From AIG Rescue to Goldman
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The Federal Reserve Bank of New York sold $6.2 billion in face value of mortgage bonds it assumed in the rescue of American International Group Inc. to Goldman Sachs Group Inc., allowing one of its bailout loans to be repaid.
The New York Fed said it sold the bonds through a “competitive process” after Credit Suisse Group AG made an unsolicited offer to buy assets held by a vehicle called Maiden Lane II LLC. The sale will allow the repayment of the central bank’s loan to Maiden Lane II, which was originally $19.5 billion, according to a statement posted on the New York Fed’s website.