Most notoriously, the chairman of the New York board was a member of the Goldman Sachs board of directors during the period in which Goldman shareholders (including this individual) benefited from a not publicly disclosed FRBNY
credit-allocation decision to have the insolvent AIG (under FRBNY
receivership) repay Goldman and other creditors 100 cents on the dollar on collateralized debt obligations that might have been settled for as little as 60 cents on the dollar (Teitelbaum and Son 2009).
already runs a well-oiled Treasury bond-trading machine: the Federal Open Market Committee ("FOMC") periodically determines broad monetary-policy targets based on the macroeconomic data at its disposal, and the FRBNY
staff devises and implements its trading strategy in line with these targets.
Importantly, the results presented here do not extend to the traditional source of data collected by the FRBNY
from the fed funds brokers.
based its decision on the results of its most recent inspection as well as documentation provided by the company under the terms of the agreement, the bank said.
In that declaration, Mahoney asserted that "[t]he FRBNY
and ML II intended for ML II to receive all transferable and assignable benefits associated with the securities and related instruments, including litigation claims associated with those securities or their acquisition by AIG.
States that BCRA assets in the FRBNY
were immune from attachment
Last month, however, the FRBNY
publicly reversed itself and provided Bank of America, the successor to Countrywide Financial, with declarations from two FRBNY
executives stating, among other things, that AIG transferred to Maiden Lane II through the APA all "litigation claims" relating to the RMBS that Maiden Lane II acquired.
The Court, accordingly, holds that Starr's claim that FRBNY
was a "controlling shareholder" or a "controlling lender" of AIG is not plausible, in light of the facts pled and documents referenced in the amended complaint, the judge said in his opinion.
1, 2009, in exchange for a reduction of the balance outstanding and the maximum credit available under the original $85 billion credit facility provided by the FRBNY
to AIG in September 2008.
GAO examined a large volume of AIG-related documents, primarily from the Federal Reserve System--the Federal Reserve Board and the Federal Reserve Bank of New York (FRBNY
)--and conducted a wide range of interviews, including with Federal Reserve System staff, FRBNY
advisors, former and current AIG executives, AIG business counterparties, credit rating agencies, potential private financiers, academics, finance experts, state insurance officials, and Securities and Exchange Commission (SEC) officials.
Three) days after the Federal Reserve Board authorized FRBNY
(the Federal Reserve Bank of New York) to assist AIG--the thenFRBNY president granted .
It will also "guarantee that the Federal Reserve Bank of New York earns a profit on its interest in Maiden Lane II while reducing the amount of AIG-related assets on the FRBNY
s balance sheet.