NY Fed sells AIG assets

Marion Dakers
CREDIT SUISSE has won an auction to buy a $7bn mortgage securities portfolio once owned by AIG.

The Federal Reserve Bank of New York, which did not reveal the sale price, was selling the assets it acquired through the bailout of American International Group in 2008.

Goldman, Barclays Capital and Bank of America Merrill Lynch also participated in the auction for the Maiden Lane II portfolio, the New York Fed said.

The sale to Credit Suisse is a blow to Goldman, which sparked the auction process last month by making an unsolicited bid for the assets.

Credit Suisse’s purchase is a sign of growing confidence in the US housing market. The New York Fed scrapped an earlier auction a year ago as the property market and wider economy appeared to teeter on the edge of a fresh downturn.