Econintersect: In a tersely worded release, the NY Fed stated “After careful review, the Federal Reserve Bank of New York (New York Fed) and the Board of Governors of the Federal Reserve System (Board) judged that the public interest in maximizing returns from any sale and promoting financial stability would be better served by an alternative approach to realizing value that is also more consistent with normal market practice. “
Earlier this month, AIG made a $15.7 billion offer to repurchase mortgage backed securities it was forced to turn over to the Federal Reserve Bank of New York in 2008 as part of the government rescue of this insurance giant. This rescue was part of the Troubled Assets Relief Program (TARP).
It was earlier reported that Barclays Plc (NYSE:BCS) is among the competitors considering a counter offer, according to the Financial Times.