| Updated:
AIG offers to buy back bonds
BAILED-out US insurer American International Group yesterday offered to buy back billions of dollars of subprime mortgage-backed securities handed over to the New York Federal Reserve as part of its 2008 rescue.
AIG offered to pay $15.7bn (£9.7bn) for all assets in Maiden Lane II, set up to hold about 800 subprime bonds taken from it in the crisis, a regulatory filing showed. The subprime securities were worth a “fair value” of $15.9bn at the end of 2010 compared to a book value of $30bn, Fed data showed. The Fed is also owed $12.8bn from a loan made to Maiden Lane II.