Maiden Lane Loans Repaid, but Assets Still Must Be Sold – NYTimes.com

Maiden Lane Loans Repaid, but Assets Still Must Be Sold – NYTimes.com.

Nader Nazemi

The Federal Reserve Bank of New Yorkannounced on Thursday that it had been paid back for loans used to support the government bailouts of Bear Stearns and the American International Group.

Even so, vestiges of the sweeping taxpayer bailouts of 2008 remain. In its announcement, the New York Fed said that Maiden Lane and Maiden Lane III, two entities that held securities once owned by Bear Stearns and A.I.G., respectively, still held assets that needed to be sold.

A.I.G. confirmed in a separate press release that Maiden Lane III, which was made up of collateralized debt obligations that had been held by a once-troubled unit of the insurer, had paid off its obligations to the New York Fed. The loan was paid off through sales of Maiden Lane III assets and cash flows generated by the derivatives.

The Fed said it had been repaid $53.12 billion for the loans plus interest.

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