By Al Yoon
Credit Suisse Group AG (CS, CSGN.VX) and Royal Bank of Scotland Group PLC's (RBS, RBS.LN) RBS Securities unit Thursday bought a total of $3.9 billion in face value of complex mortgage securities from the latest sale of assets held in a Federal Reserve Bank of New York crisis-era portfolio, the New York Fed's website said.
Credit Suisse took four of the five collateralized debt obligations, for a face value of about $3 billion, the New York Fed said.
The New York Fed has accelerated its pace of sales this month as it winds down the Maiden Lane III portfolio taken on during its bailout of American International Group Inc. (AIG) in 2008. Sales from the portfolio have already resulted in full paydown of the loan made by the New York Fed and an equity contribution of AIG.
Another $8 billion in face value of assets is slated to be sold in auction to Wall Street dealers by the end of July. The New York Fed will receive two-thirds of profits generated by Thursday's and future sales, with AIG netting the rest.
Write to Al Yoon at firstname.lastname@example.org.
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(END) Dow Jones Newswires
July 19, 2012 13:36 ET (17:36 GMT)
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