Skip to content
Subscriber Only

New York Fed Said to Seek Bids for Mortgage Bonds Linked

The Federal Reserve Bank of New York is seeking bids for more of the mortgage bonds assumed in the government rescue of American International Group Inc. as prices on the debt rally, two people with knowledge of the plan said.

After it was approached by a potential buyer, the New York Fed may sell the remaining assets in its Maiden Lane II LLC vehicle, totaling about $6 billion in face value, said the people, who asked not to be identified because the deal is private. Maiden Lane II was created in 2008 to buy holdings that AIG handed the central bank in exchange for a cash injection.