Credit Suisse Scoops Up $7B Mortgage Portfolio from New York Fed


The Federal Reserve Bank of New York said it had sold a $7 billion portfolio of mortgage securities to Credit Suisse Group as part of an effort to unload assets acquired as part of the bailout of American International Group Inc.

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The New York Fed did not reveal the sales price, but said it "represented a good value for the public."

The sale was prompted after Goldman Sachs Group Inc earlier this month offered to buy the assets. The bid initiated an auction held by the New York Fed.

(Reporting by Carrick Mollenkamp)