New York Fed Taps 5 Banks to Bid for AIG Bonds: WSJ
The five banks selected are the U.S. securities units of Barclays PLC, Credit Suisse Group AG , Goldman Sachs Group, Morgan Stanley and Royal Bank of Scotland PLC.
The Fed could sell the residential mortgage bonds from its Maiden Lane II portfolio around Feb. 8 if a favorable offer comes through, the report said, citing people familiar with the matter.
The Maiden Lane II portfolio was created to absorb risky mortgage securities from AIG and help prevent the collapse of what was then the world’s largest insurer.
In March last year, the New York Fed had rejected a $15.7 billion bid from AIG, saying it would sell off the bonds over time instead.
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