Rejected Maiden Lane II offer baffles AIG

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American International Group (AIG) has expressed its dismay at a decision by the New York Federal Reserve to reject an offer from the insurer to buy back assets held in Maiden Lane II.

On Wednesday, the New York Federal Reserve said it had declined a $15.7 billion offer from AIG, a rescued insurer, to buy all the residential mortgage-backed securities (RMBS) in Maiden Lane II, one of two bailout vehicles set up in 2008 to salvage the company. The regional Fed said it would instead sell the asset

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