NY Fed Halts Sales Of AIG Mortgage-Backed Securities

Law360, New York (July 1, 2011, 1:06 PM EDT) -- The Federal Reserve Bank of New York said Friday it would suspend sales of mortgage-backed securities acquired in the 2008 American International Group Inc. bailout due to unfavorable market conditions.

"We do not anticipate any sales of bonds in the near term, or until such time as the New York Fed deems it will achieve value for the public," New York Fed spokesman Jack Gutt said Friday.

The bundle of securities was created during the economic meltdown that brought AIG to its knees and forced the...
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