Goldman Sachs Group Inc. (NYSE: GS) has purchased $6.2 billion (face value) worth of American International Group Inc. (NYSE: AIG) subprime mortgage bonds from the New York Federal Reserve Bank. The bonds were part of a collateral package delivered to the NY Fed as collateral for a $19.5 billion senior loan.
The NY Fed did not disclose the sales price, and won’t until the entire portfolio is sold. The other bidders at this auction were Credit Suisse AG (NYSE: CS), Barclays plc (NYSE: BCS), Morgan Stanley (NYSE: MS), and the RBS.
Credit Suisse purchased subprime debt with a face value of $7 billion in January. In March of last year, the NY Fed rejected AIG’s proposal to purchase the entire portfolio — known as Maiden Lane II — for $15.7 billion. When the bank reports the results of its sales in April, we’ll know if US taxpayers got a good deal or not.
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