New York Fed Completes Maiden Lane III Asset Sales

Posted by Orb Staff on August 24, 2012 No Comments
Categories : Residential Mortgage

12264_sale New York Fed Completes Maiden Lane III Asset Sales The Federal Reserve Bank of New York (New York Fed) has sold the remaining securities in the Maiden Lane III LLC portfolio. According to the New York Fed, its management of the portfolio will result in a net gain of approximately $6.6 billion, including $737 million in accrued interest on the New York Fed's loan to Maiden Lane III.Â

‘The completion of the sale of the Maiden Lane III portfolio marks the end of an important chapter – our assistance to AIG – that was undertaken to stabilize the financial system in the midst of the financial crisis,’ says William C. Dudley, president of the New York Fed. ‘I am pleased that we were able to achieve our principal goal, which was to protect the U.S. economy from the potentially devastating effects of AIG's failure, while demonstrating sound stewardship of taxpayer interests. I am proud of and commend all of the people at the New York Fed who worked tirelessly and diligently to get us here.’

The New York Fed adds that net proceeds from past sales, conducted by BlackRock Solutions, as well as cash flow the securities generated while held by Maiden Lane III, enabled the full repayment of the New York Fed's loan, plus interest, on June 14 and AIG's equity contribution to ML III, plus interest, on July 16.

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