The Federal Reserve Bank of New York has received a formal offer from American International Group (AIG) to repurchase the assets in Maiden Lane II, LLC (MLII).

AIG has offered to buy back $15.7 billion in RMBS from the Maiden Lane II entity formed in late 2008 as part of AIG's bailout.

“AIG believes this offer is in the best interest of the U.S. taxpayers, the U.S. government and AIG itself,” the insurer said in a letter to the New York Fed.

The Fed said in a statement that it has been aware of AIG's interest in those assets for some time.

"Any decision on a possible disposition of these assets will be made in a way that maximizes the proceeds to the taxpayer and that is consistent with the goal of fostering financial stability," the Fed said in a statement.

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