Press Release

New York Fed Sells Remainder of Maiden Lane LLC Securities; Approximately $2.5 Billion Net Gain Generated for U.S. Public from the Portfolio

September 18, 2018

The Federal Reserve Bank of New York (New York Fed) today announced the completion of the sale of the remaining securities in the Maiden Lane LLC (ML LLC) portfolio.  Sales of the remaining securities took place over the course of the past several months, with the final sale occurring within the last two weeks.

ML LLC was formed to facilitate JPMorgan Chase & Co.’s (JPMC) merger with Bear Stearns Companies Inc. Net proceeds from past sales, conducted by BlackRock Solutions, as well as cash flow the securities generated while held by ML LLC, enabled the full repayment of the New York Fed’s loan, plus interest, on June 14, 2012 and of the subordinate loan JPMC made to ML LLC, plus interest, on November 15, 2012.

The New York Fed’s management of the ML LLC portfolio resulted in a net gain of $2.5 billion, including interest paid to the New York Fed of $765 million, for the benefit of the public. ML LLC will retain minimal cash to meet any trailing expenses in order to facilitate an orderly wind-down.

In keeping with its commitment to transparency, on December 17, 2018 the New York Fed will provide further details regarding the activity of the holdings of ML LLC since inception.

For more information on ML LLC, visit Maiden Lane Transactions.

Contact
Andrea Priest
(212) 720-6139
Andrea.Priest@ny.frb.org