Home >> News >> Government >> Goldman Sachs Scoops Up $6.2B in AIG Mortgage Assets
Print This Post Print This Post

Goldman Sachs Scoops Up $6.2B in AIG Mortgage Assets

""Goldman Sachs"":http://www2.goldmansachs.com/ scooped up $6.2 billion in risky mortgage bonds from the ""Federal Reserve Bank of New York"":http://www.newyorkfed.org/index.html, the central bank said Wednesday.

[IMAGE] [COLUMN_BREAK]

The Maiden Lane II assets stem from the taxpayer-funded bailout of American International Group during the financial crisis.

An original senior loan in the amount of $19.5 billion needed repayment, and Credit Suisse offered an initial inquiry to pick up the tab for Maiden II assets last fall.

The move brought on an auction by the Fed that attracted interest from the likes of Goldman, ""Barclays"":http://group.barclays.com/Home, ""Morgan Stanley"":http://www.morganstanley.com/, and others.

The federal government held out on an offer until it felt the sale would mete out a higher rate of return for the public.

""I am pleased with the continued interest in these assets and am especially gratified that the New York Fed's loan to ML II will be repaid as a result of the sale announced today,"" William Dudley, president of the New York central bank, said in a statement.

The Fed aims to liquidate and sell off the remainder of these assets.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.
x

Check Also

Homebuyer Assistance Act Addresses Appraisal Shortages

The Homebuyer Assistance Act of 2019, H.R. 2852, originally introduced by Reps. Brad Sherman and Sean Duffy on May 20, has been advanced by the House Financial Services Committee.

GET THE NEWS YOU NEED, WHEN YOU NEED IT.

With daily content from MReport, you’ll never miss another important headline in originations, lending, or servicing. Subscribe to MDaily to begin receiving a complimentary daily email containing the top mortgage news and market information.