NY Fed Rejects $15.7B AIG Bid To Rebuy MBS

Law360, New York (March 30, 2011, 10:34 PM EDT) -- The Federal Reserve Bank of New York announced on Wednesday that it had declined an offer from American International Group Inc. to buy a group of mortgage-backed securities for $15.7 billion.

The New York Fed said that it would instead sell the securities in the Maiden Lane II LLC portfolio individually and in segments over time, which it believes "will maximize sale proceeds while also reducing the likelihood that any one institution ends up with concentrated exposure to these assets."

AIG had put in a bid...
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