Friday, August 24, 2012

New York Fed Sells Last of AIG Bonds, at a Profit!!

The Federal Reserve Bank of New York on Thursday sold the last toxic assets it acquired from the bailout of American International Group Inc., closing the book on its most controversial intervention during the financial crisis with a large gain to taxpayers, according to the WSJ.

The regional Fed bank said it reaped $6.6 billion in profits from selling complex mortgage securities that it took on in late 2008 to stem AIG's cash bleed. The securities, known as collateralized debt obligations, were chiefly responsible for the New York-based insurer's near-collapse and government bailout after their market values plunged during the financial crisis….

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