Fed Sells $7B of Mortgage Securities From AIG Bailout

The Federal Reserve Bank of New York recently sold $7.01 billion worth of mortgage-backed securities it had assumed from AIG, as the U.S. government continues to recoup its money from its bailout of the insurer.

The securities, held by an investment vehicle called Maiden Lane II, were sold to Credit Suisse Group. “I am pleased with the strength of the bids and the level of market interest in these assets,” New York Fed President William Dudley said in a statement.