What was maiden lane

The purpose of this bridge loan was to ensure that Bear Stearns would meet its obligations as they came due that day, allowing for time during the weekend for Bear Stearns to explore options with other financial institutions that might enable it to avoid bankruptcy and for policymakers to continue to seek ways to contain the risk to financial markets in the event no private-sector solution proved possible.

The rate of interest on this loan was the rate for primary credit. The bridge loan was extended under the authority of Section 13 3 of the Federal Reserve Act, which permitted the Board, in unusual and exigent circumstances, to authorize Reserve Banks to extend credit to individuals, partnerships, and corporations. Bear Stearns likely would have been unable to avoid bankruptcy on Monday, March 17, without either very large injections of liquidity from the Federal Reserve or an acquisition by a stronger firm.

JPMorgan Chase and Co. However, JPMC was concerned about its ability to absorb a portion of Bear Stearn's mortgage trading portfolio, given the uncertainty about the scale of potential losses facing the financial system at the time and strained credit markets.

The interest rate on the loan extended by the FRBNY is the primary credit rate, and the interest rate on the subordinated loan is the primary credit rate plus basis points.

The loan to Maiden Lane LLC loan was extended under the authority of Section 13 3 of the Federal Reserve Act, which permitted the Board, in unusual and exigent circumstances, to authorize Reserve Banks to extend credit to individuals, partnerships, and corporations.

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In it acquired 22 acres of land which would become the Maiden Lane Estate. In the s the area neighbouring the site, Agar Town, had been demolished by the Midland Railway to make room for the coming railway into London from the north. This meant devastating housing losses for the working class residents of Camden and Kentish Towns with little compensation or commitment to rehouse the inhabitants that had been made homeless. For hundreds of years the Maiden Lane site was fields and pasture land, used for agriculture.

The Midland Railway developed the area as an important site for coal and goods depots, engine workshops, cattle and sheep pens for onward transport to the Caledonian Cattle Market stabling blocks and a smithy, which remained well into the s. In the s private contractors dumped tons of household waste, mainly cinder ashes from household coal fires, in great mounds at sites around London, usually along the Thames and by canals. Note: Derivatives includes swap contracts, futures, and options on futures.

All the assets purchased originated from the Mortgage Desk of Bear Stearns. Regardless of the final closing date of the asset purchase, in order to be eligible for purchase by ML LLC, the Bear Stearns assets needed to meet the following eligibility criteria as of March 14, Cash Assets Securities and Mortgage Loans. The interest on the New York Fed senior loan accrues at the primary credit rate. The interest on the JPMC subordinated loan accrues at the primary credit rate plus basis points.

The distribution of proceeds realized on the ML LLC portfolio including interest proceeds and proceeds from the maturity or liquidation of the asset portfolio occurs on a monthly basis, unless otherwise directed by the New York Fed, and is made in the following order each category must be fully paid before proceeding to the next lower category :.

Exception: There was a 2-year accumulation period from June 26, closing date until June 26, , during which any proceeds realized in the ML LLC portfolio, after the payment of certain fees and expenses and any payments made pursuant to the derivative contracts, was deposited into a reserve account and reinvested into eligible investments 2.

At the sole discretion of the New York Fed, repayment of the senior loan could have commenced during the 2-year accumulation period, but only if the ML LLC first paid in full the outstanding principal amount of the subordinate loan plus any accrued and unpaid interest.

Since the end of the accumulation period on June 26, , distribution of the proceeds realized on the portfolio occurs on a monthly basis, unless otherwise directed by the Federal Reserve. Key Investment Guidelines. Weekly H. As a result, the weekly H.

Report on Credit and Liquidity Programs The Federal Reserve prepares this report as part of its efforts to enhance transparency about the range of programs and tools that were implemented in response to the financial crisis. As a normal course of business, ML LLC sells assets from its portfolio in order to meet its mandated investment objective. The asset sales information provided below is intended to enhance the transparency around ML LLC portfolio asset sales.

After the New York Fed loan has been repaid in full with interest, to the extent that there are sufficient remaining cash proceeds, the AIG insurance subsidiaries will be entitled to receive the fixed deferred purchase price, plus accrued interest at a rate of one-month LIBOR plus basis points. The distribution of the proceeds realized on the ML II LLC portfolio including interest proceeds and proceeds from the maturity or liquidation of the asset portfolio occurs on a monthly basis, unless otherwise directed by the New York Fed, and is made in the following order each category must be fully paid before proceeding to the next lower category :.

Quarterly Summary of Assets and Outstanding Loan Balance March 31, pdf December 31, pdf September 30, pdf June 30, pdf March 31, pdf December 31, pdf September 30, pdf June 30, pdf March 31, pdf December 31, pdf September 30, pdf June 30, pdf March 31, pdf December 31, pdf Holdings Report January 31, xls December 31, xls November 30, xls October 31, xls September 30, xls August 31, xls July 31, xls June 30, xls May 31, xls April 30, xls March 31, xls February 28, xls December 31, xls September 30, pdf June 30, pdf March 31, pdf January 29, pdf Year-end Financials December 31, pdf December 31, pdf December 31, pdf December 31, pdf December 31, pdf December 31, pdf Back to Top.

Monthly Review February 29, xls January 31, xls June 30, xls May 31, xls April 29, xls Monthly report which includes a list of the assets sold during the month by current face amount. Quarterly Review March 31, xls June 30, xls Quarterly report which includes a list of the total amount sold during the period by counterparty name.

This report is released within 15 days of quarter end. The loan has a stated term of 6 years, and may be extended by the New York Fed at its discretion. After the New York Fed loan has been repaid in full plus interest, to the extent that there are sufficient remaining cash proceeds, AIG is entitled to repayment of its equity interest, plus accrued interest at a rate of one-month LIBOR plus basis points.

The distribution of the proceeds realized on the ML III LLC portfolio including interest proceeds and proceeds from the maturity or liquidation of the asset portfolio occurs on a monthly basis, unless otherwise directed by the New York Fed, and is made in the following order each category must be fully paid before proceeding to the next lower category :.

Public from the Portfolio » The New York Fed is providing the following information on the progress of the sales on a regular basis, taking care to preserve the effectiveness of the asset sales process: Security Offerings Timing and general information about securities offered and sold.

Monthly Review August 31, xls July 31, xls June 30, xls May 31, xls April 30, xls Monthly report which includes a list of the assets sold during the month by current face amount. Quarterly Review September 30, xls June 30, xls Quarterly report which includes a list of the total amount sold during the period by counterparty name. Timeline Date. Federal Reserve releases detailed information about transactions conducted to stabilize markets during the recent financial crisis Usage of Federal Reserve Credit and Liquidity Facilities.

New York Fed releases statement supporting comprehensive U. New York Fed Press Release ». New York Fed publishes web page on Maiden Lane transactions. AIG Press Release. AIG also terminates domestic securities lending program. Chairman Ben S. Board of Governors and Treasury announce the restructuring of the government's financial support to AIG. Board of Governors Press Release. New York Fed President testifies before U. Senate Committee on Banking, Housing and Urban Affairs on actions taken in response to liquidity pressures in the financial markets Geithner Testimony ».

Bernanke testifies before the U.