New York Fed sells last securities from AIG rescue

AP News
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Posted: Aug 23, 2012 1:44 PM

NEW YORK (AP) — The Federal Reserve Bank of New York says it's sold the remainder of the securities that it had bought as part of the rescue of beleaguered insurance giant American International Group during the financial crisis.

On Thursday, the New York Fed said the sale of the securities will result in a net gain to the American taxpayers of $6.6 billion.

During the financial crisis of 2008 and 2009, AIG was brought to its knees when it couldn't meet obligations tied to securities that had plummeted in value. The Fed stepped in and bought some of the most toxic securities from AIG and also from its counterparties, which included some of the largest financial firms in the country.