Goldman Sachs is picking up the pieces from the wreckage of the American International Group.
The Federal Reserve Bank of New York announced on Wednesday that it had sold securities with a face value of $6.2 billion to Goldman, which beat out four other investment banks in the auction.
The assets, held in an investment vehicle known as Maiden Lane II, were acquired from A.I.G. in 2008 as part of the insurer’s rescue through a taxpayer-financed bailout. The New York Fed said that the proceeds from this sale and a similar one last month would allow it to finish recouping the $19.5 billion loan that financed Maiden Lane II in 2008. The loan will be fully paid back in early March, according to the statement.
The latest auction, which represented approximately half of all the securities remaining in Maiden Lane II, was prompted by Credit Suisse. Last month, the bank bought Maiden Lane II assets with a face value of $7 billion, and quickly sold them to clients including hedge funds and other banks. Seeing the demand, Credit Suisse went back to the New York Fed requesting another large chunk of securities.
After receiving the bank’s unsolicited bid — known as a “reverse inquiry” — the New York Fed began an auction, attracting Barclays Capital, Goldman Sachs, Morgan Stanley and the Royal Bank of Scotland, according to the Fed’s statement. Goldman won with a bid of unspecified sum.
In a statement, the New York Fed said only that “the winning bid represented good value for the public.” Profits from the sale will be reported on April 16 as part of Maiden Lane II’s regular reporting schedule.
“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 C. Dudley, the New York Fed’s president, said in a statement.
A Goldman spokesman declined to comment.
Bonds with a face value of roughly $6 billion still remain in the Maiden Lane II portfolio. The New York Fed said it would use BlackRock Solutions, the adviser it has hired to wind down the portfolio, to run a “a competitive sales process” for the remaining assets.



Comments