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

  • 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