This facility allowed AIG to terminate its securities lending program and to repay fully all outstanding amounts under the Securities Borrowing Facility, which was then terminated. The Federal Reserve also took steps to help address the drain of liquidity on AIG arising from potential collateral calls associated with credit default swap contracts written by Financial Products on multi-sector CDOs.
The New York Reserve Bank made a secured, non-recourse loan in the amount of $ billion to another special purpose limited liability company (Maiden Lane III).