The Federal Reserve Bank of New York and BlackRock Solutions managed to sell $1.3 billion in subprime mortgage bonds that the Fed acquired from American International Group (AIG) when it bailed out the insurer three years ago. According to the Fed's website, it announced an offering of $1.5 billion in former AIG securities assets this week. The auction is part of a Fed plan to offload the bonds after it rejected a bid from AIG to repurchase all of the assets lingering in the Maiden Lane II portfolio for $15.7 billion. That portfolio observed subprime mortgage bonds tied to AIG during the 2008 bailout of the firm. Maiden Lane is the name of several residential mortgage securitization platforms created to clear toxic mortgage investments. Instead, the Fed opted to have BlackRock sell the assets off in pieces under the notion it would produce a higher profit for taxpayers. A spokesperson for AIG was not immediately available to comment on whether the insurer placed bids for the assets that were put up for sale this week. Write to Kerri Panchuk.