Bear Stearns Bailout
Maiden Lane LLC 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. Bloomberg, 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. An October 7, 2010 update to the Federal Reserve balance sheet, as of October 6, 2010, reported the fair market value of net portfolio holdings were $28.478 billion.
Maiden Lane was organized as Delaware Limited Liability Company on April 29, 2008, and registered to do business as a foreign limited liability company in the state of New York on June 26, 2008. The registered agent of Maiden Lane LLC is the CT Corporation.
Read more about this topic: Maiden Lane Transactions
Famous quotes containing the word bear:
“There is a distinction to be drawn between true collectors and accumulators. Collectors are discriminating; accumulators act at random. The Collyer brothers, who died among the tons of newspapers and trash with which they filled every cubic foot of their house so that they could scarcely move, were a classic example of accumulators, but there are many of us whose houses are filled with all manner of things that we “can’t bear to throw away.””
—Russell Lynes (1910–1991)