Does anyone have further details on this? According to Earth Times : On November 10, 2008, AIG and the FRBNY established Maiden Lane III, a financing entity, to purchase the securities underlying certain CDS contracts from the counterparties to such contracts, allowing the cancellation of the contracts. Attachment B lists payments made by Maiden Lane III to such counterparties. So it looks like it's a special investment vehicle to buy CDO's that AIG wrote CDS's on, alleviating the underwriting stress on AIG of them. My question is: are they being bought at face value, or at current market???? I'd think the CDO's can decline significantly in value without triggering a "credit event" that would allow a claim on the CDS?? thoughts?