Maiden Lane LLC
Maiden Lane LLC was formed to repay the New York Fed’s senior loan while striving to maximize sales processed and refraining from changing general financial market conditions, acquire certain assets of Bear Stearns and to manage those assets through time to maximize repayment of the credit extended, and alleviate capital and liquidity pressures on American International Group, Inc. Maiden Lane LLC purchased approximately $30 billion in assets from Bear Stearns with a loan of approximately $29 billion from the FRBNY. In 2012, the Federal Reserve Bank of New York announced that its loans to Maiden Lane LLC (ML LLC) and Maiden Lane III LLC (ML III LLC) have been fully repaid with interest.
- Formed during the sale of Bear Stearns
- Formed to hold mortgages and other underwater assets held by Bear Stearns
- Also held mortage-backed securities and CDOs from AIG
- The Federal Reserve provided loans to fund the Maiden Lane entities
- Final Assets were sold off in September, 2018
Maiden Lane Criticisms
- The assets purchased were not made public
- Bloomberg filed a FOIA request in 2008 (denied stating was proprietary bank records)
- Once finally released 2 years later, it was revealed that the assets were not high quality
Multiple Maiden Lane Entities Were Created :
- Maiden Lane LLC (closed in 2018) - profitable
- Maiden Lane II LLC (closed in 2012) - profitable
- Maiden Lane III LLC (closed in 2012) - profitable