|Copyright:||(c) 2011 A.M. Best Company, Inc.|
|Source:||A.M. Best Company, Inc.|
At the time, the FRBNY took the then-troubled assets from AIG’s balance sheet and loaned the company cash to conduct business.
AIG had offered
“The public interest in maximizing returns from any sale and promoting financial stability would be better served by an alternative approach,” the FRBNY said in a statement.
In light of improved conditions in the secondary market for RMBS, “and a high level of interest by investors, the Federal Reserve believes that conditions are right” for Maiden Lane II to begin more extensive asset sales, the bank said.
The FRBNY is auctioning off small blocks of the assets at a time. On
“Current face amount represents the most recent balance of principal outstanding on the assets and should not be confused with market value or the price Maiden Lane II paid to acquire the assets,” the FRBNY said.
Last week, the Fed sold about
“AIG will continue to work with FRBNY on its new process to sell off piecemeal the Maiden Lane II assets. AIG continues to believe that AIG and the taxpayers, who own 92% of AIG, would be better served by public auction of the entire block of securities,” said
However, “AIG will continue to work through this piecemeal bidding process,” Herr said in an email.
The FRBNY created Maiden Lane II and Maiden Lane III, which holds credit default swaps, as part of the
AIG was in danger of failing in
That initial assistance was restructured over time, and was supplemented in
For instance, in March, AIG said it took some of the proceeds from the sale of
Most of AIG’s insurance subsidiaries currently have Best’s Financial Strength Ratings of A (Excellent).
On the afternoon of