(Reuters) – The Federal Reserve Bank of New York said on Thursday it has postponed the latest sale of mortgage-backed assets from the Maiden Lane III portfolio, which it acquired as part of a rescue package for the giant U.S. insurer AIG.
The Fed bank did not give a reason for the postponement, saying it will sell assets "only if the best available bid represents good value for the public."
Thursday had been the bid submission deadline for assets with a face value of $1.67 billion. Some seven broker-dealers took part in the auction for the collateralized debt obligations, or CDOs.
The New York Fed has successfully sold assets in both Maiden Lane II and Maiden Lane III portfolios this year, reflecting higher demand for such mortgage-backed securities that were at the heart of the 2007-2009 financial crisis. The Fed bank sold all of its TRIAXX CDOs earlier this month.
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