The Federal Reserve Bank of New York has rejected AIG’s $15.7 billion bid for a portfolio of mortgage-backed securities, Bloomberg reports. The New York Fed has decided to auction the assets individually and in blocks, rather than selling them back to the insurer.

The Fed acquired the bonds in a vehicle, called Maiden Lane II, as part of the 2008 bail-out of AIG. The securities are mostly backed by subprime home loans and have a face value of roughly $30 billion, adds The Wall Street Journal.

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