The Federal Reserve announced Wednesday that it was declining an offer from American International Group (NYSE: aig) to buy the mortgage-related assets it holds in its Maiden Lane II portfolio.
Instead of selling the assets as a block to a single buyer, the Fed says it will sell the assets individually and in blocks in a “competitive process.” Earlier reports have said that the Fed was considering an auction for the assets.
The Fed acquired the mortgage-related assets in connection with the bailout of AIG in 2008. At the time, they were considered to be “toxic.”
