NU Online News Service, July 17, 3:15 p.m. EDT

American International Group will gain approximately $2.1 billion over its initial $5 billion investment in Maiden Lane III when the Federal Reserve Board of New York completes its sale of securities held in the facility.

The Fed created Maiden Lane III in 2008 to cancel credit-default swaps that AIG had sold to protect counterparties against losses. The insurer needed to be rescued after it was unable to meet collateral calls from banks that included Goldman Sachs Group Inc., Deutsche Bank, Paribas and Societe Generale SA.

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