A Busy Two Months for the New York Fed
The Sack-man was busy over the past two months, returning ~$19 Billion dollars worth of shitty mortgage backed securities back to the private sector (face value that is), and buying a building. $207.5 Million is a rather large operating expense, couldn't the treasury use that for something?
Today the NYFed announced that they sold the final $6 billion dollars worth of securities they held in Maiden Lane II to Credit Suisse. Feel good if you're a client of Credit Suisse, they "won" two out of the three bids for these toxic assets - have fun with that.
This draws the AIG bailout holdings down to zero, and clears the account out for the next round of MBS purchases from Fannie & Freddie. The Fed claims to have made ~$2.8 Billion on their AIG "investment".
Sack checks off some of his SMART objectives early in the quarter:
- January 19th, sold $7 Billion of MLII to Credit Suisse
- February 8th, sold $6 Billion of MLII to Goldman
- February 28th, sold $6 Billion of MLII to Credit Suisse
- February 28th, announced the purchase of 33 Maiden Lane for $207.5 Million
ZH exclusive footage of Sack-man calling Bernanke at HQ to let him know the deal is done: