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Observations In Progress On The Fed Data Dump (In Which We Learn That Merrill Pledged Up To 77% Of A Fed Loan With Equity Collateral)
As we are going through the excel sheets from the Fed dump, we will share our key findings. Keep in mind this is very raw data and will need far more processing before conclusions can be derived.
- One of the biggest stunners: Bank of America pledged as much as 77.2% of a loan from the PDCF with equity collateral! So much for the Fed taking fiduciary precaution with what crap it lends taxpayer money against. This is a topic we first (very disgusted) discussed first over a year ago.
- Probably the most interesting data is the disclosure of the Fed purchases of MBS securities from the Primary Dealers as for the first time ever we get information on the actual transaction prices paid by Brian Sack. We will refine the data far more soon with transaction basis granularity, but for now here are the Primary Dealers from which the Fed purchased hundreds of billions of MBS from:
- Goldman Sachs (GS) borrowed 84 times (50 for just the dometic operations) from Fed's dealer facility (PDCF) from Sept. 15 to Nov. 26, 2008 for amounts ranging from USD 100mln to USD 18bln
- Bank of America borrowed 118 times from the PDCF from Sept 18 2008 to May 2009, in amount ranging from $375 million to $11 billion. A graphic visualization of BofA borrowings on PDCF below:
- Looking at the TALF data, we see that the biggest borrower by subscription is Calpers, with a total of about $5.4 billion
- More curiously, now disgraced and embroiled in an insider trading scandal hedge fund FrontPoint seems to have been a very active borrower on the TALF facility, having received $4.136 billion on subscription, the bulk of it going to a FrontPoint Michigan Strategic Partnership Investment entity, which has borrowed $2.6 billion
- Foreign central bank borrowings
- ECB - 271 borrowings for gross rolling total of just over $8 trillion.
- SNB - 114 borrowings, for a gross rolling total of $465 billion
- BOE - 81 borrowings for a gross rolling total of $918 billion
- ECB - 271 borrowings for gross rolling total of just over $8 trillion.
- Borrowings by the Bank of America Complex (BofA, Countrywide Financial, which yes, was a Primary Dealer for a while, and Merrill Lynch). The combined entity see its borrowings peak on September 26, 2008 for a total of $40.2 billion
- Selected non-financial domestic companies being bailed out by the Fed courtesy of borrowings on the Commercial Paper Funding Facility
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9/16 are foreign banks.
Why do I feel like I have a gaping ass hole?
Top 2 recpients are not U.S banks.
That's b/c the stupid German's bought tons and tons of MBS. They were often times the end "cum dumpster" for toxic MBS shit. Soros mentions it in passing in "the 2008 credit crisis and what it means".
Not just the Germans. The RBA balance sheet shows an enormous fall the the market value of 'foreign securities' from June 2007, which is exactly when the corporate bond, read money, market began to fail.
I suspect these 'foreign securities' weren't UST's. RBA, meet bag!
I just want to be on record in saying, and I do think I'm the first one to do so, that QE 3.0 will be for at least 87 Trillion USD, which will then equal about 75 Trillion Euro, or about 17 ounces of gold.
Actually, your hyperbole is not far off the mark. $70 trillion has been signed off on.
I need to change my underpants.
...or a loaf of bread...
OK...now that 3.3 million SPY creation units were dumped near the top of today's action, the rumor that the US is bailing out Europe is now officially retracted.
Nice. More criminal syndicate Wall Street activity. More propaganda. It simply never ends.
The only marker manipulator who wont see a prosecutor.
Saw a suspicious "Abraham Gesundheit" on the TALF spready
I'm pulling 30% of my retirement fund early so I can be virtually debt free and add to my Silver bullion stash. Money left in a retirement fund will be worth much less in terms of your purchasing power 5 to 10 years from now. I'll pay the taxes (this year) and the penalty. In the end I gain more. Market looks good but it's in cheaper dollars. Stock market did well too right before the great depression. Weimar Germany also for that matter.....
Hoser
That's a dumb idea. Sorry.
Why on Earth would you pay taxes and penalties to cash out of a market that is nearly bulletproof against all bad news, and, instead, use those funds to pay off debt in an environment of near zero interest rates?
Dumbest idea ever.
If you choose to compare the performance of the stock market right before the Great Depression within a modern timeframe, you would want to look at the market in 06/07.
Wow, a good comment. I'm impressed. Well done.
I mean that in all seriousness.
That said, I disagree. Retirement funds aren't far away from being nationalized. That risk is too high to continue participating in this rather pitiful rally that shows no signs of really gaining steam.
Retirement funds are never nationalized, except in Hungary, Ireland, France....
Trust me, I am far and away ahead of having stayed in the market!!! Far, far and away.
Because in ten-twenty years when I hoped to retire, the stocks will be worth less in real dollars, the taxes will be higher when I withdraw it then, and of course the inheritance tax on any left over will consume additional.
I'll be watching very carefully the tax rates that go in effect next year. It may be better to retire now at 56, pay 10% penalty on withdrawals while I live comfortably in Philippines on amounts that 50% of people here in US can earn and not pay taxes. Total Tax rate=10% on today's dollars. That will be hard to beat when you consider the higher risk of inflation tax hikes.
When I was in the Philippines (Marcos regime) we couldn't own property there.
Good idea Hoser. I did it two years ago! So I got the gold and silver a little cheaper.
Hoser, I cashed out all of my 401k 2 years ago. Paid the taxes and penalties (steep) and bought silver and gold. I now have the same amount (in fiat) that I had before pulling it out and paying the taxes. I realized that ledger entries are not a retirement account. Being mortgage/debt free, having a year worth of supplies (food/water/etc) and a safe full of Au/Ag without counterparty risk is the best I could do for my family's future. I don't advocate it for everyone. But I sleep better at night knowing that whatever stupidity or scam the task masters pull next wont change how much physical I have in my safe.
An alternative is to move funds through a self-directed IRA and invest in virtually anything, including PM, LLCs, and foreign real estate. Pay about $2000 to set up, some low yearly service fees. Just google up some services that will do it for you -- took me two weeks to complete. No penalties, taxes, etc.
And, there's just no telling what you can do with it from there....
Correct. You will profit very handsomely from this course.
LOTS of INDIVIDUAL NAMES under talf.borrower.
Keep people busy...
102 TALF borrowers are listed with Cayman Island addresses...
So the Federal Reserve bought nearly $600 Billion in trash MBS from EUROPEAN BANKS??
What authority do they even have to do this? If I've ever seen a reason to disband the Fed, this is it. This should be a national scandal.
It's called a refund...because the US allowed/enabled the US Banks to sell them this sh-t in the first place.
There is some "truth" inside all of this somewhere but I am not quite sure what it is. Liars publishing something. Again, funny.
Fuck me. You mean to say my tax dollars went to some retired California teacher and/or councilman?
"Waterfall TALF Opportunity, LLC"
nice name.
Everyone can calm down! LiesMan is on the case.
You know what would be a great fight (as in throwback Mike Tyson)? TD vs. LiesMan.
"I am here with Teddy Atlas. Teddy, do you have a prediction on the fight?"
"TD is by far the heaviest hitter in the game, and he has speed to match. I expect a TKO in the first round, if not in the first seconds."
Hey, hey, now.
Steve LIESman didn't get to where he is today on his good looks alone.
Give the man some credit.
No, he happens to own 7 pairs of designer kneepads!
GOLDMAN was a dead man walking in 2008.
They lied and lied and lied.
And still this stock market is holding up.
DavidC
Big news for me is the HEAVY BAILING in Spring of 2008 PDCF.
Lots of lying to the market during this time.
FRBNY buying CLO's that had no secondary market.
Some say this was illegal.
Bernie Madoff is reported to have gotten a peek at this data, and in amazement, he turned to his fellow inmates and the guards, and simply uttered (in a low, serious tone):
"Damn, why didn't I think of that?"
he wasn't that evil
Lehman gets $50B the day and day after they file Chapter 11
Keep buying silver
You'll need a dedicated Bank of America Thread Tyler....this is mind boggling....
Federal Reserve Data Dump: Old Mozilo Did Well Too-Countrywide PDCF BorrowingsLewis was a fat pig easy to fry. It was clear and I said at the time when he was making his fantastic buys that he was being fatted for the slaughter.
He was too stupid or blind to see it until too late.
What a bumpkin..............
Those rats dump raw data to make it as tough as possible. Like when Goldman Sachs sent 100 000 pages to the SEC. Last thing the criminals at the Fed want is for the public to actually know which of their banker they are giving public funds to. liberty is on the ropes
The "European-banks-own-the-Fed conspiracy" people are going to go NUTS!
Looks like they're right.
I can only hope this gets Tea Partiers in a bunch...Europeans getting all our money, pulling all the strings, that's gotta get em riled up.
I am outraged...I am angry...I am...ooh, look, iCrap 50% off for the next two hours!!!
$8 trillion to the ECB? Is that right? Isn't that a bombshell, or am I missing something?
I was thinking the same thing.
11 times bigger than TARP...wow
This can't be right? 8 trillion to ECB? Tyler can you expand on that?
yeah, this was supposed to be an accounting on 3.3 Trillion dollars of FED money...but hey, the FED prints it anyway...
I see its noted as rolling, so I'm assuming it was a bit like my credit cards, run up for awhile, pay them down, run em back up again etc..
Washington D.C. and Manhattan are Booming!
Merry Christmas, Fly Over Country Fuckers!
Enjoy your coal!
*And please pay your taxes like good little serfs. We who own you have mistresses with expensive tastes, and shit.
Breaking news...WikiLeaks disappeared from Interwebz according to AP:
http://news.yahoo.com/s/ap/20101201/ap_on_hi_te/us_tec_wikileaks_amazon"
"NEW YORK – The website of WikiLeaks, the organization that just released a trove of sensitive U.S. State Department documents, appears to have lost or left its main Web host, Amazon.com.
The main website and a sub-site devoted to the diplomatic documents were unavailable from the U.S. and Europe on Wednesday, as Amazon servers refused to acknowledge requests for data.
Availability of the sites has been spotty since Sunday, when it started to come under a series of Internet-based attacks by unknown hackers. WikiLeaks dealt with the attacks in part by moving to servers run by Amazon Web Services, which is self-service.
Amazon.com Inc. would not comment on its relationship with WikiLeaks or whether it forced the site to leave. Messages seeking comment from WikiLeaks were not immediately returned."
...Internet-based attacks by unknown hackers.
cry havoc and let slip the dogs of war. This will result in a counterattack, and the result will be a call for internet regulation. The Internet Patriot Act is already written and waiting.
Edit: Wow, I thought there was a concerted effort being made to keep them down. Maybe the "unknown attackers" need help from the boys at ChinaRailwayTelecomm.
Well, that's taken care of, now who else can we give trillions of dollars that we don't have to?
Whooops, why didn't I wait a few minutes ' The United States would be ready to support the extension of the European Financial Stability Facility via an extra commitment'
What's with this stock market run-up? Is this orchestrated to coincide with the Fed's relevation of it's johns list?
Meanwhile, am really anxious to see Tyler's analysis as he picks through the wreckage.
This is very disappointing. As a US taxpayer, I demand ISIN's for the collateral that was posted on these term lending facilities.
Seriously, though, for these collateralized term lending facilities I'd love to see the haircuts they were applying over against the market prices of individual instruments (where such a thing existed) at the time of the loan.
I had a dream the other night that Washington was burned to the ground. If only dreams could come true for the little people..
ECB at 8 Trillion! That is full retard, faggopotamusly huge.
Goldman Sachs (GS) borrowed 84 times (50 for just the dometic operations) from Fed's dealer facility (PDCF) from Sept. 15 to Nov. 26, 2008 for amounts ranging from USD 100mln to USD 18bln
But Lloyd said before Congress that they hadn't borrowed except to test whether they could?
feather and hang the bald man.
so they bought 300 billion in MBS from Deutshe? Am I reading this right? To bail out a foreign bank?
Well, you know, if we don't make it right somehow things get very dicey international relations-wise.
The US isn't the only country with nuclear weapons, you know.
True that.
Is it just me or do some of those borrowing charts look eerily familiar to some of those HFT 'crop circle' patterns?
I wonder what Chris Whalen is making of all this?
The Fed bought $203 million of McDonald's (MCD) commercial paper. $1.48 billion of Verizon's (VZ). And $2.3 billion of Harley-Davidson's (HOG). Perhaps McDonald's and Verizon, both with hundreds of thousands of employees, were deemed systemically important, but Harley-Davidson and its 7,300 employees?
No wonder Buffet lent money to HOG.
This is crony corrupt capitalism at it's height
If McDonald's went down, that would be akin to the sacking of Athens or Rome, for the U.S.
By the way, you still clean & sober and off the nose candy, Larry?
Uncle Warren strikes again. The big fat crook.
buying corporate commercial paper was probably the only good thing they did, not like McDonalds not making money, in many of these case it was likley truly a liquidity issue for a month or so... but the HOG was a HOG...that kinda of money is a GM type bailout and should be discussed publicly.
Saving GM, and Chrysler, and HOG many years ago, did good for US economy, if we were buying all our cars from foreign companies, there would be a lot of engineer, management, marketing, design jobs that would have left US...but saving big banks, especially foreign banks, did us no good. Fed provided commercial paper private US corporations needed, F the banks, seize em, protect deposits and close those parasitic black holes.
I would rather see the FED support commercial paper directly than try to push enough crap through the banks hoping a few skittles will drop out for main street to pick up.
Dropping dollar, surging BS equities...highly likely the next 'airplane contrails' we see head inland and fall on Manhattan.
Can anyone explain why the $8 trillion to the ECB is not the most interesting data here, as opposed to the purchases of MBS's?
Is that just the transaction clearing function, so it's all just overnight stuff? And maybe if that's true, it's not as significant as the number suggests?
I would appreciate anyone's input on this.
I don't see this as a biggie, just a liquidity operation supporting the reserve currency functions in Europe.
If you find $1 wasn't paid back, let us know.
Has any of this "borrowing" been paid back?
Tyler -
Brief Footnoting of your larger material claims would be a great help.
Oh god i think I am going to be sick, plooooooo-ugh
Where is the volume????? up 255---nothing
Where is the volume????? up 255---nothing
EQUITY pledged? Theirs on the shelf or someone elses?
Guaranteeeeed BAC offered them 50% or less at first! You know they didnt come in with 77% right off the bat!! Nothing north of 50% at first then they said ok....if you are going to give us this shit(better than MBS) you have to fork over 77%.
Bad but could be worse!
It's a big hunk of shit any way you look at it
BofA would love to give them 100%. It means the loan was pledged with equity, while any borrowings from the Fed were traditionally collateralized with AAA bonds. This is a total abandonment of fiduciary responsibility by the Fed which previously would never give money to banks in exchange for (bankrupt among other) stock holdings.
I wonder if the new Congress will let Ron Paul do what's needed.
This should be a major issue. Bernanke literally should be removed from his position, a well as those who were complicit with him, and a major criminal investigation launched.
Where's Holder?
Will he show up?
He has jurisidiction, and the Congress has subpoena and other powers.
THIS..... http://www.ft.com/cms/s/0/4dd95e42-fd6d-11df-a049-00144feab49a.html?ftcamp=rss#axzz16tUfjSOK
...just put Ron Paul in the driver's seat.
It's ideological Christmas.
Please post a synopsis since FT.com wants me to subscribe.
I do not know but when one Senator is speaking to another Senator regarding our system and how our entire political legislative system is rigged it tells us that we are not paranoid and that a coup has taken place in the United States of America and it all began with Kennedy. For anyone who disputes wether Kennedy was killed for not going to war in Cuba and furthering Vietnam here are some facts which all but prove Oswald was fabricated for his exact role and I reco reading JFK: The Unspeakable because it all but proves that Oswald was given the depository job by a couple that just so happened to be the Son in law of Bell helicopters inventor Arthur Young. Why this man's wife never informed him of the job offer as a baggage handler paying $100.00 more a month 2 days earlier from a job recruiter?? Well she could not recall if she had told him or not as she testified to the Warren Commision. Also likely not a coincidence her lifelong best friend worked in the OSS with Allen Dulles and was his lover for years.
http://voices.washingtonpost.com/44/2010/12/michael-bennet-its-all-rigge...
Where's Holder? lol. With all that is going on, guess where Holder is going? He is going overseas to lobby for the World Cup! no joke.
Good work Tyler.
How is it that people still believe that a private corporation must issue them paper to use as a means of an exchange and as a preserver of wealth?
what is the probability that the data is cooked ?
(by the way thanks a lot for the charts !)
Nigel Farage: "The money struggle is the struggle against totalitarianism" (Dec 1, 2010)
The Fed dump today confirms the bankster conspiracy to the skeptics and the illusion of democratic self government.
Entropy
so where in the course of human history does this rank on the shackles scale?
Wall Street Criminals just blew smoke up everyones ass during this Holiday Season making EVERYBODY giddy with fake wealth SO THEY CAN TRY AND JUSTIFY THE BILLION DOLLAR BONUSES THEY ARE GOING TO BE PASSSING OUT AT THE OFFICE CHRISTMAS PARTIES!!!! POP the cork!!!! Dow UP triple digits, give me a fucking break...............
$8 Trillion in swap lines with ECB - what a fucking joke. If they defaulted we'd be completely screwed. It's all monopoly money. When things fail, just make pretend.
from an investment standpoint, i ignored all data and went long 1 /es at 1641 yesterday.
i drank the kool-aid
up is down, down is up, it's like banker confidence is worth more than ours, with fractional reserve banking our money supply shrinks when ALL the comercial banks stop lending/CREATING less$. Consumer inflation w/ banker deflation when our prices go up, but their assets are worth less. debt is a ponzi scheme, greenbacks and colonial script, as if we really won the revolutionary war.
collecting is good but, say no to gold backed crown of thorns as currency for exchange of goods
So is this an accurate takeaway:
PD's hold "bad bets" that are in rapid decline, "which threatens to blow up the entire world- read: their opulent lifestyles".
Bernank essentially says "No problem, boys. You just leave that there paper with me and I'll print you up some money in exchange. Take that money and head on back down to the casino and double down on the paper of yours I'm now holding. Bid them up as high as necessary until confidence and liquidity is restored and you can safely liquidate it for a healthy capital gain. We'll exchange the gain for the paper I'm holding for you and no one will be the wiser. Leave a little extra with me so we can follow through on our 'taxpayers might make a buck or two' cover story. Oh yeah, and don't be shy- give yourself a fat bonus if we're able to pull this thing off. Be sure to buy the mistress a yacht even; good for the economy you know. Phew, trading and financing sure is back-breaking work."
one of the better summaries I've seen, Milt
How does ECB swaps borrowing work? With number like 8 TRILLION, it seems we should understand this better. What kind of transaction is this and how does the ECB use it? Is the 8 trillion cumulative, or does it not include paybacks to the Fed? Would the Euro have gone to 50 cents had the US not been there with 8 trillion??
With all of these Trillions getting laundered around the globe, is the US back to making stuff? Are we at all interested in Manufacturing anymore? Can't we just go back to finding economic success by simply making things better, stronger, faster, safer than anyone else?
All we do now is push paper from attorney to attorney, write some code to create websites, create more and more algo's to manipulate global markets, and invent new ways of cooking financial records. Fraud has gone hi-tech, and that seems to be the only area we are excelling in.
Meanwhile, I haven't ridden on a train in the US in over 20 years, my gas mileage on my car is the same as it was in the 80's, and I can't keep a charge on my phone for more than 5 hours. WTF?
For the MBS program, the last trade date was July 8, 2010. If you sum the purchase amounts, you get $1.85 trillion. If you sum the sale amounts, you get $0.6 trillion. Differencing these yields $1.25 trillion. However, if you go to the H.4.1 release for that week (http://www.federalreserve.gov/releases/h41/20100708/), mortgage-backed securities are only listed as being $1.12 trillion.
That leaves $0.13 trillion unaccounted for. I thought that perhaps the category for federal agency debt securities would cover this gap, so I checked the CUSIPs for the SOMA release for that week (http://www.ny.frb.org/markets/soma/mbsholdings070710.xls) with the CUSIPs for the MBS program (http://www.federalreserve.gov/newsevents/files/mbs.xls), and did not find any matches. Please note that the SOMA release does not appear to have an archive--I found that file by modifying the address for the current release (112410 --> 070710).
Am I missing something simple here, or does it appear that $0.13 trillion has simply disappeared? Does this have to do with the principal on the MBS being paid off?
HEADLINE
The data shows that during the worst liquidity crisis in a century that major financial institutions had liquidity problems!!!!
Honestly, this data dump is the biggest dud in some time. Not that anyone with some sense thought this data would show anything particularly interesting. Looks like ZH will have to go back to talking about how AIG er Maiden Lane er HFT er TARP er Madoff er Goldman er Greece er Fraudclosure er [insert next red herring] is a clear signal of the decline of civilization.