ML III Sale is almost done

Maiden Lane III sale is down to the wire now. According to the NY Fed web site,

About $3.5B (face value) ML III security was sold on July 24, and there are another $4.4B (face value) will be sold on July 31st. In addition, here is the specific information on Principal Accounts of Maiden Lane III LLC,

So by July 25, 2012, the net portfolio holdings of ML III is ~7 B (fair value). After ~4.4B  (face value) of security sale by the end of July, we may have less than $3B (fair value) net balance left over. This is really GREAT NEWS! We can expect the final piece sale to be scheduled to be sometime in August, then ML III will be all gone! This means that Fed will distribute the funds to AIG, and AIG will receive ~7B, and we will soon see Fed will sell more AIG stocks and AIG is in another huge repurchasing spree. Fun is coming soon…