Fed’s Maiden Lane Holding Bear Stearns-Tied Assets Shrinks
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Maiden Lane LLC, the company created by the Federal Reserve Bank of New York in its rescue of Bear Stearns Cos. in 2008, is shrinking at a faster pace as it sells holdings.
The assets of Maiden Lane, used by the U.S. central bank to facilitate the sale of the New York-based investment bank to JPMorgan Chase & Co., were valued at $24.8 billion on April 27, down from $25.6 billion on March 30 and $30 billion at inception, according to weekly Fed data released yesterday. The 4.7 percent decline in the holdings, mostly government-backed mortgage bonds, is the largest since October 2008.