Fed says received AIG's buyback offer

By @ibtimes on

The Federal Reserve Bank of New York said on Friday it had received American International Group Inc's offer to buy back residential mortgage-backed securities taken over at height of the financial crisis.

AIG offered on Thursday to buy back, for $15.7 billion cash, residential mortgage-backed securities (RMBS) held in Maiden Lane II, an entity formed in late 2008 as part of AIG's bailout.

Any decision on a possible disposition of these assets will be made in a way that maximizes the proceeds to the taxpayer and that is consistent with the goal of fostering financial stability, the Fed said in a statement on its website.

The Fed said it has been aware of AIG's interest in those assets for some time.

(Reporting by Paritosh Bansal, editing by Dave Zimmerman)

Join the Discussion