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Profile: Federal Reserve Bank of New York

Federal Reserve Bank of New York was a participant or observer in the following events:

To assist in the merger of Bear Stearns Companies, Inc. and JP Morgan Chase & Co., the US Federal Reserve authorizes the New York Fed to form Maiden Lane LLC, a Delaware limited liability company. Once established, Maiden Lane is extended credit by the Fed to acquire certain Bear Stearns assets. Maiden Lane funds the purchase of the Bear Stearns asset portfolio of mortgage related securities, residential and commercial mortgage loans, and associated hedges through senior and subordinate loans of approximately $29 billion from the New York Fed, and a much smaller amount, approximately $1.15 billion, from JP Morgan Chase. As of March 14, 2008, the asset portfolio has an estimated fair value of approximately $30 billion. (Federal Reserve Bank of New York 3/2008)

To facilitate AIG’s ability to complete its corporate restructuring, the New York Federal Reserve, as authorized by the US Federal Reserve, creates Maiden Lane II LLC and Maiden Lane III LLC to fund the purchase of certain multi-sector collateralized debt obligations (CDOs) from certain AIG Financial Products Corporation (AIGFP) counterparts. The Asset Portfolio purchase will be made in two stages, with Maiden Lane II LLC lending AIG $26.8 billion on November 25, 2008, and Maiden Lane III LLC lending AIGFP and its counterparties $2.5 billion on December 18, 2008 (see March, 2008). (Federal Reserve Bank of New York 11/10/2008)


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