Tags: New York Fed Plans 1.2 Billion of Auctions Tied to AIG Bonds

New York Fed Plans $1.2 Billion of Auctions Tied to AIG Bonds

Monday, 11 Apr 2011 02:08 PM

The Federal Reserve Bank of New York plans to sell $1.2 billion of mortgage bonds this week tied to the U.S. rescue of American International Group Inc.

The New York Fed is conducting its second and third auctions of the debt, according to a posting on its website. It plans to seek bids on $691.3 million of bonds by April 13 and $534.1 million of securities with an April 14 deadline. guaranteed by government-supported Fannie Mae and Freddie Mac.

The Fed is selling the securities, after saying March 31 that it refused an offer from New York-based AIG to buy back the entire pool for $15.7 billion. The current balance of the investments had totaled about $31 billion, according to the insurer’s disclosures.

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