NEW YORK (AP) — The Federal Reserve Bank of New York 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, AIG was brought to its knees when it couldn’t meet obligations tied to securities that had plummeted in value. The Fed and the U.S. Treasury stepped in with a package of loans and guarantees totaling $182.5 billion to rescue the New York-based insurance giant from collapse in 2008 and 2009.
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