Remember those strolls down Maiden Lane: here and here. Well, the Fed just announced today that it has lost a combined additional $10 billion from Maiden Lane II and III - these are the AIG counterparty bailouts. Maiden Lane I didn't escape the carnage either - that portfolio lost $830 million.
Oh, don't worry about any taxpayer losses:
The central bank has said it doesn’t expect taxpayer losses on the portfolios in part because the Fed has as long as 10 years to sell the assets. Today’s release reflects values of assets as of March 31.
Boy, did JP Morgan Chase get a great deal on that Maiden Lane I/Bear Stearns.
nice timing too
Ya gotta watch those press releases that are timed to be coincident with "big" news...i.e. the stress test "results".
I think with Bank failure Friday we all know about press releases issued at 5pm on Fridays but this is another trick.
Thank God for all of you guys and the blogs else we would be truly running blind on what is going on!
Fed is trying the "transparency" thing.
In a move to try to fend off calls for audits and more oversight, the fed is providing more disclosure about its very aggressive moves. It has provided a monthly report. Here is a link.
The thing that sticks out. The Fed continues to lose big money - like tens of billions on its Maiden Lane investments. Ouch. Check out Table 24.
RebelCapitalist.com - Financial Information for the Rest of Us.