Credit Suisse Buys $7B In Mortgage Bonds From NY Fed

Law360, New York (January 19, 2012, 5:18 PM EST) -- The Federal Reserve Bank of New York has sold to a Credit Suisse Group AG unit a pool of mortgage-backed securities with a $7 billion face value that it purchased to bail out American International Group Inc. in 2008, the New York Fed announced Thursday.

The securities were held in the New York Fed's Maiden Lane II LLC portfolio, created when the Fed purchased $20.5 billion in residential mortgage-backed securities from AIG's U.S. insurance subsidiaries after the U.S. government took over the troubled insurance and finance...
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