Bailed-out insurer American International Group has bought about $2 billion of the mortgage-backed securities being auctioned by the Federal Reserve out of its Maiden Lane II portfolio, Chief Executive Bob Benmosche said on Friday.

AIG tried to buy the entire portfolio from the Fed last year but its offer was rejected. The Fed instead began to auction the portfolio in pieces.

(Reporting By Ben Berkowitz; Editing by Steve Orlofsky)