The Federal Reserve Bank of New York (New York Fed) has completed the sale of the remaining securities in the Maiden Lane III (ML III) portfolio.
The apex banking regulator said that it garnered a net gain for the benefit of the public of nearly $6.6bn, including $737m in accrued interest on the New York Fed's loan to ML III.
Net proceeds from previous sales, conducted by BlackRock Solutions, as well as cash flow the securities generated while held by ML III, enabled the full repayment of the New York Fed's loan, including interest, on 14 June 2012 and AIG's equity contribution to ML III, plus interest, on 16July 2012, claims New York Fed.
New York Fed president William Dudley said the completion of the sale of the Maiden Lane III portfolio marks the end of its assistance to AIG that was undertaken to stabilize the financial system in the midst of the financial crisis.
"I am pleased that we were able to achieve our principal goal, which was to protect the U.S. economy from the potentially devastating effects of AIG's failure, while demonstrating sound stewardship of taxpayer interests," Dudley added.
Together the total net profit to taxpayers from the New York Fed's assistance to AIG and AIG-related facilities was $17.7bn, the US central bank said.
