WMAIDEN1: 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.
Hmmmmm. I recall that EVERYBODY swore up and down that the taxpayer would totally make money on this deal. Well, Maiden Lane LLC started off with $30 billion in “assets” (I use the term loosely) that are now valued at $27. That is $3 billion or a 10% loss in just over 6 months.
Friday, January 9, 2009
Posted by Ben Bittrolff at 4:00 PM