Board of Governors of the Federal Reserve System

1. Daily pricing was implemented on January 30, 2009. Prior to that, collateral was priced weekly. Return to text

1. Lendable value after application of appropriate margins. Return to text

2. For all depository institutions that were borrowing on the date shown. The value of collateral pledged by all depository institutions was $1,570 billion. Return to text

1. Lendable value after application of appropriate margins. Return to text

2. Includes credit extended through the Primary Dealer Credit Facility and other broker-dealer credit. Return to text

NOTE: The collateral and loan amounts shown correspond to the dates in the final column. These dates are consistent with the reporting dates for information in the recent Federal Reserve System Monthly Report on Credit and Liquidity Programs and the Balance Sheet report.

1. Loans under this program are non-recourse loans. Return to text

NOTE: The collateral and loan amounts shown correspond to the dates in the final column. These dates are consistent with the reporting dates for information in the recent report submitted to the Congress under Section 129 of the Emergency Economic Stabilization Act.

1. The Board does not anticipate that the loan to Maiden Lane will result in any net loss to the Federal Reserve or taxpayers. The loan to Maiden Lane LLC was extended with the expectation that the full value of its portfolio (the collateral) would be realized either by holding the assets to maturity or by selling the assets in an orderly manner over an extended period of time. In addition, JPMorgan Chase will absorb the first $1.1 billion of realized losses, should any occur. Moreover, under the terms of the agreement, the Federal Reserve Bank of New York is entitled to receive interest payments on the loan to Maiden Lane, as well as any residual cash flow generated by the collateral after the loans to the Federal Reserve Bank of New York and JPMorgan Chase are repaid. Return to text

2. This lending is secured by a pledge of assets of AIG and its primary non-regulated subsidiaries, including all or a substantial portion of AIG's ownership interest in its regulated U.S. and foreign subsidiaries. Furthermore, AIG's obligations to the Federal Reserve Bank of New York are guaranteed by many of AIG's domestic, nonregulated subsidiaries that have more than $50 million in assets. These guarantees themselves are separately secured by assets pledged to the Federal Reserve Bank of New York by the relevant guarantor. Additional subsidiaries of AIG may be added as guarantors over time. In light of the complexities involved in valuing the extremely broad and diverse range of collateral and guarantees securing these advances, any estimate of the aggregate value that ultimately will or may be received from the sale of collateral or the enforcement of the guarantees in the future would be speculative and disclosure of any such estimate could interfere with the goal of maximizing value through the company’s global divestiture program and, consequently, diminish the proceeds available to repay the loan. Given the substantial assets and operations supporting repayment of the loan and the equity investment made by Treasury in AIG, and based on the Federal Reserve's most recent review of security arrangements supporting the Revolving Credit Facility, the Federal Reserve does not expect that this lending to AIG will result in any net loss to the Federal Reserve or taxpayers. Return to text

3. Because the collateral assets for the loans to ML-II and ML-III are expected to generate cash proceeds and will be sold over time, the current reported fair values of the net portfolio holdings of ML-II and ML-III do not reflect the amount of aggregate proceeds that the Federal Reserve could receive from payments on the assets or from the sale of the assets of these entities over the extended term of the loans. The collateral will be sold over time in a manner that is orderly and designed to reduce the effects of the unnaturally strong downward market pressures that have been associated with the recent liquidity crisis. In addition, AIG has a $1 billion subordinated position in ML-II and a $5 billion subordinated position in ML-III. These subordinated positions are available to absorb first any loss that ultimately is incurred by ML-II or ML-III, respectively. The Federal Reserve also is entitled to receive interest on the loans to ML-II and ML-III while they are outstanding and 5/6ths and 2/3rds of any residual cash flow generated by the collateral held by ML-II and ML-III, respectively, after the senior note of the New York Reserve Bank and the subordinated note of AIG are repaid. Given these protections, the Board does not believe that the extensions of credit to ML-II or ML-III will over time result in any net loss to the Federal Reserve or taxpayers. Return to text

4. Loans under this program are non-recourse loans. Return to text

NOTE: *No loans have been extended under these programs.

1. Rates for all programs are proposed by the board of directors of the lending Reserve Bank and approved by the Board of Governors of the Federal Reserve System. Return to text

2. Current and historical primary, secondary, and seasonal rates can be found at
http://www.frbdiscountwindow.org/currentdiscountrates.cfm. Return to text

3. Prior to January 12, 2009, the minimum bid rate was based on a measure of the average expected overnight Fed Funds rate over the term of the credit being auctioned. Return to text

4. Prior to November 10, 2008, the rate was three-month Libor plus 850 basis points. Return to text