The Federal Reserve Bank of New York this week plans to auction more than $7 billion of “toxic” securities related to the bailout of American International Group (AIG), according to The Financial Times.

Some analysts said the sale could enable the repayment of the last loan owed to the New York Fed from the controversial rescue.

The New York Fed will take bids on Wednesday and Friday for securities in collateralised debt obligations held in a vehicle called Maiden Lane III.

Read more at The Financial Times.

kcurry@housingwire.com