The Federal Reserve Bank of New York successfully sold off the last remaining group of securities from the AIG bailout from 2008. The its efforts the Fed netted taxpayers a profit of nearly $18 billion after all was said and done.
This particular group of securities sold were from a portfolio known as Maiden Lane III, which consisted of various complex investment vehicles that helped lead the largest insurance agency in the nation to a near collapse just a few years ago. The NY Fed made a profit of $6.6 billion from selling off the Maiden Lane III assets.
In February of this year, it had earned $2.8 billion from unwinding another portfolio known as Maiden Lane II, as well as an additional $8.2 billion on interest and fees as related to the bailout.
“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,” New York Fed President William Dudley said in a statement.
“The completion of the sale of the Maiden Lane III portfolio marks the end of an important chapter-our assistance to A.I.G.-that was undertaken to stabilize the financial system in the midst of the financial crisis,” said William C. Dudley, the New York Fed’s president, in a statement.
While the Federal Reserve has completed its role in one of the largest bailouts in history, the U.S. Treasury still holds a majority stake in AIG’s common stock at 53 percent. The Treasury sold nearly $10 billion in AIG stock in August and May combined, at a price of $30.50 per share. The the break-even price per share for the government to net a profit is $28.72, according to the Treasury. AIG shares are currently trading around $33.75.