U.S. Treasury begins to scale back MBS portfolio

10:31, March 22, 2011      

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The U.S. Department of the Treasury announced Monday that it will begin to wind down its remaining portfolio of 142 billion U.S. dollars in agency- guaranteed mortgage-backed securities (MBS), a further exit step from the massive financial rescue moves adopted several years ago.

"Starting this month, Treasury plans to sell up to 10 billion dollars in agency-guaranteed MBS per month, subject to market conditions," the department said in a statement. "We are continuing to wind down the emergency programs that were put in place in 2008 and 2009 to help restore market stability, and the sale of these securities is consistent with that effort," said Mary Miller, assistant Treasury secretary for financial markets.

"We will exit this investment at a gradual and orderly pace to maximize the recovery of taxpayer dollars and help protect the process of repair of the housing finance market," Miller added.

U.S. Treasury acquired its portfolio of agency-guaranteed MBS under authority provided to it by Congress under the Housing and Economic Recovery Act of 2008.

Source: Xinhua
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