American International Group, Inc. : New York Fed Details Maiden Lane II Operations, Payouts
05/29/2012| 11:13am US/Eastern
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By Al Yoon
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The Federal Reserve Bank of New York on Tuesday said it received nearly $24 billion in cash from non-agency residential mortgage bonds held in a portfolio taken on during the 2008 bailout of American International Group, resulting in a $2.85 billion profit.
The cash proceeds from interest and assets sales paid off the $19.5 billion loan and other items, including expenses and accrued interest, the New York Fed said on its website.
Under terms of the loan, the New York Fed took five-sixths of the residual profit of $2.72 billion, while AIG paid the other fraction. The $2.27 billion paid to the New York Fed, plus $580 million in accrued interest, made up its total profit, it said.
The New York Fed sold about $20 billion in face value of distressed mortgage bonds from the portfolio earlier this year through bulk auctions to Credit Suisse and Goldman Sachs Group.
-By Al Yoon, Dow Jones Newswires; 212-416-3216; albert.yoon@dowjones.com
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