Fed $2.7bn down on Bear, GSE sell-off continues

The value of the assets held on the Federal Reserve's books as collateral for its $29 billion loan to failed investment bank Bear Stearns fell by 9.2% over the third quarter, it emerged Thursday. Data also showed foreign central banks flight from Fannie Mae and Freddie Mac paper continued.

The release also revealed American International Group, the world's biggest insurer, had drawn $90.3 billion of its $122.8 billion credit line.

The Federal Reserve's weekly Statistical Release for the week e