Goldman buys $6.2 billion of Maiden Lane II assets

By Jon Prior
• February 8, 2012 • 1:18pm

Goldman Sachs ($160.73 1.83%) acquired $6.2 billion of Maiden Lane II assets from the Federal Reserve Bank of New York.

The Maiden Lane II facility borrowed $19.5 billion to purchase assets from American International Group ($44.96 0.07%) as part of the monoline insurer's bailout.

The deal with Goldman follows the previous sale of $7 billion in AIG assets to Credit Suisse ($29.66 -0.51%) in January.

AIG unsuccessfully tried to buy back these assets last year. The federal government believed it could get more of a return if it put the assets out to bid.

NY Fed President William Dudley said the $19.5 billion loan will be repaid on its next scheduled date in early March because of the Goldman deal.

"I am pleased with the continued interest in these assets and am especially gratified that the New York Fed's loan to ML II will be repaid as a result of the sale announced today," Dudley said.

The New York Fed and its asset manager on the deal BlackRock ($30.09 -0.32%) will dispose of the remaining securities in the ML II portfolio individually and in bundles over time.

Maiden Lane II also bought out securities from several insurance subsidiaries of AIG. These firms will have to pay an additional $1 billion when the loan is formally repaid.

jprior@housingwire.com

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