The Federal Reserve Bank of New York yesterday sold the last toxic assets it acquired from the bailout of American International Group Inc., the Wall Street Journal reported today. The regional Fed bank said that it reaped $6.6 billion in profits from selling complex mortgage securities that it took on in late 2008 to stem AIG's cash bleed. The U.S. Treasury and Federal Reserve together committed up to $182.3 billion to support AIG at the height of the crisis, and at its peak the New York Fed lent over $90 billion to the company and investment vehicles that purchased AIG-linked assets. The regional Fed bank has been fully repaid on its various loans.
