AIG's securities lending bailout portfolio closes
29 February 2011 New York
Image: Shutterstock
The New York Fed has announced the sale of the remaining securities in the Maiden Lane II portfolio, generating a net $2.8 billion gain for the benefit of the public, including $580 million in accrued interest on the loan.
William Dudley, president of the New York Fed, said, “The completion of the sale of the Maiden Lane II portfolio has resulted in significant gains for the public and marks an important milestone in the wind-down of the extraordinary interventions necessitated by the financial crisis.”
Maiden Lane II was created in November 2008 in order to alleviate capital and liquidity pressures on AIG associated with the securities lending portfolio of several of the insurer's subsidiaries.
The New York Fed’s management of the portfolio will also result in full repayment of the $19.5 billion loan extended by the New York Fed.
William Dudley, president of the New York Fed, said, “The completion of the sale of the Maiden Lane II portfolio has resulted in significant gains for the public and marks an important milestone in the wind-down of the extraordinary interventions necessitated by the financial crisis.”
Maiden Lane II was created in November 2008 in order to alleviate capital and liquidity pressures on AIG associated with the securities lending portfolio of several of the insurer's subsidiaries.
The New York Fed’s management of the portfolio will also result in full repayment of the $19.5 billion loan extended by the New York Fed.
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