Fed Reserve makes $626 million on another AIG asset sale
The Federal Reserve Bank of New York posted a $626 million profit on the sale of subprime mortgage bonds that the central bank acquired from American International Group (AIG) in 2008. The Fed offered 42 bonds valued at $691.2 million this week, receiving bids on 37. The success of the sale suggests there is still high demand for the asset class that has been parked in the Fed's Maiden Lane II portfolio ever since the bail out of AIG three years ago. The sale comes on the heels of a $1.3 billion subprime mortgage-backed offering by the Fed more than a week ago. The bank is expected to announce the results of another subprime mortgage bond sale Thursday. In that sale, the Fed Bank is accepting bids on 8 bonds valued at $534.127 million. Write to Kerri Panchuk.