New York Fed Sells Maiden Lane II Assets to Goldman


The Federal Reserve Bank of New York said Wednesday that it has sold assets with a current face value of $6.2 billion from its Maiden Lane II LLC portfolio through a competitive process to Goldman Sachs Co.

Proceeds from this sale and a Jan. 19 transaction, will enable the repayment of the entire remaining outstanding balance of the senior loan from the New York Fed to ML II on the next payment date in early March.

The senior loan’s original amount was $19.5 billion.

The New York Fed, which originally acquired the Maiden Lane II assets when it provided financial support to American International Group in November 2008, said the catalyst for the sale was an unsolicited offer from Credit Suisse to Maiden Lane II’s investment manager, BlackRock Solutions, to buy Maiden Lane II assets.

The Federal Reserve Bank of New York then, consistent with Maiden Lane II disposition procedures, directed BlackRock to conduct a sale through a competitive process. Five broker-dealers participated in this based on their recently submitted reverse inquiries for large parts of the portfolio: Barclays Capital Inc., Credit Suisse, Goldman, Morgan Stanley and RBS Securities.

The New York Fed said it felt the winning bid represented good value for the public.

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