Tuesday, September 4, 2012
Fed turns AIG bailout into $18 billion profit
Posted by Linda H on 6:20:00 AM
The Federal Reserve Bank of New York announced Thursday that it had sold the last of its securities related to the AIG bailout. The portfolio, known as Maiden Lane III, consisted of collateralized debt obligations, or CDOs -- highly complex financial instruments that bundle various kinds of debt. The Maiden Lane III sales earned $6.6 billion.
Months earlier, the New York Fed sold off Maiden Lane II assets for $2.8 billion. That portfolio contained mortgage-backed securities insured by AIG. The NY Fed also made $8.2 billion in interest and fees from a credit line extended to AIG that was terminated last year.
Apple Needs to Make it in America
