In Millions
Net Portfolio Holdings Maiden Lane I: $27,181
Net Portfolio Holdings Maiden Lane II: $19,813
Net Portfolio Holdings Maiden Lane III: $26,967
Total Net Portfolio Holdings: $73,961
What is Maiden Lane Holdings?
From Wikipedia:
http://en.wikipedia.org/wiki/Maiden_Lane_LLC
Maiden Lane LLC is the first holding company bearing the name that was created when JPMorgan Chase took over Bear Stearns in early 2008. It holds an asset portfolio that JPMorgan found too risky to assume in whole, and consequently the Federal Reserve Bank of New York extended a $30 billion credit line to the limited liability company to facilitate the unwinding of these assets over time. Blooomberg, citing Bank of America analysts, reported on October 2, 2008, that the Federal Reserve might stand to lose $2 to $6 billion on the asset porfolio. A November 06, 2008, update by the Federal Reserve showed that the fair value of the assets was at $26.8 billion[1], meaning a book loss of $2 billion for the Federal Reserve.[2]
The Maiden Lane name has been used for a series of bailouts and is currently at Maiden Lane III
Note: On June 26, 2008, the Federal Reserve Bank of New York (FRBNY) extended credit to Maiden Lane LLC under the authority of section 13(3) of the Federal Reserve Act. This limited liability company was formed to acquire certain assets of Bear Stearns and to manage those assets through time to maximize repayment of the credit extended and to minimize disruption to financial markets. Payments by Maiden Lane LLC from the proceeds of the net portfolio holdings will be made in the following order: operating expenses of the LLC, principal due to the FRBNY, interest due to the FRBNY, principal due to JPMorgan Chase & Co., and interest due to JPMorgan Chase & Co. Any remaining funds will be paid to the FRBNY.
Note: On December 12, 2008, the Federal Reserve Bank of New York (FRBNY) began extending credit to Maiden Lane II LLC under the authority of section 13(3) of the Federal Reserve Act. This limited liability company was formed to purchase residential mortgage-backed securities from the U.S. securities lending reinvestment portfolio of subsidiaries of American International Group, Inc. (AIG subsidiaries). Payments by Maiden Lane II LLC from the proceeds of the net portfolio holdings will be made in the following order: operating expenses of Maiden Lane II LLC, principal due to the FRBNY, interest due to the FRBNY, and deferred payment
and interest due to AIG subsidiaries. Any remaining funds will be shared by the FRBNY and AIG subsidiaries.
Note: On November 25, 2008, the Federal Reserve Bank of New York (FRBNY) began extending credit to Maiden Lane III LLC under the authority of section 13(3) of the Federal Reserve Act. This limited liability company was formed to purchase multi-sector collateralized debt obligations (CDOs) on which the Financial Products group of American International Group, Inc. (AIG) has written credit default swap (CDS) contracts. In connection with the purchase of CDOs, the CDS counterparties will concurrently unwind the related CDS transactions. Payments by Maiden Lane III LLC from the proceeds of the net portfolio holdings will be made in the following order: operating expenses of Maiden Lane III LLC, principal due to the FRBNY, interest due to the FRBNY, principal due to AIG, and interest due to AIG. Any remaining funds will be shared by the FRBNY and AIG.
Now an update from the Federal Reserve, as of January 21, 2009:
http://www.federalreserve.gov/releases/h41/Current/
3. Information on Principal Accounts of Maiden Lane LLC
Millions of dollars
Wednesday
Account name Jan 21, 2009
Net portfolio holdings
of Maiden Lane LLC (1) 27,181
Outstanding principal amount
of loan extended by the
Federal Reserve Bank of New York (2) 28,820
Accrued interest payable to the
Federal Reserve Bank of New York (2) 276
Outstanding principal amount and
accrued interest on loan payable
to JPMorgan Chase & Co. (3) 1,191
1. Fair value. Fair value reflects an estimate of the price that would be received upon selling an asset if the transaction were to be conducted in an orderly market on the measurement date. Revalued quarterly. This table reflects valuations as of September 30, 2008. Any assets purchased after this valuation date are initially recorded at cost until their estimated fair value as of the purchase date becomes available.
2. Book value. This amount was eliminated when preparing the Federal Reserve Bank of New York's statement of condition consistent with consolidation under generally accepted accounting principles. Refer to the note on consolidation accompanying table 9.
3. Book value.The fair value of these obligations is included in other liabilities and capital in table 1 and in other liabilities and accrued dividends in table 8 and table 9.
Net portfolio holdings
of Maiden Lane II LLC (1) 19,813
Outstanding principal amount
of loan extended by the
Federal Reserve Bank of New York (2)19,169
Accrued interest payable to the
Federal Reserve Bank of New York (2) 44
Deferred payment and accrued interest payable
to subsidiaries of
American International Group, Inc. (3) 1,005
5. Information on Principal Accounts of Maiden Lane III LLC
Millions of dollars
Wednesday
Account name Jan 21, 2009
Net portfolio holdings of
Maiden Lane III LLC (1) 26,967
Outstanding principal amount of loan extended
by the Federal Reserve Bank of New York (2) 24,339
Accrued interest payable
to the Federal Reserve Bank of New York (2) 66
Outstanding principal amount
and accrued interest on loan payable to
American International Group, Inc. (3) 5,032
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