On Thu, Sep 25, 2008 at 6:04 PM, michael perelman <[EMAIL PROTECTED]> wrote: > The Treasury has lent money on the Bear Stearns paper. Someone must know > how that paper is performing. Wouldn't that be important in understanding > the underlying value? >
The Fed is supposed to provide quarterly updates on the value of the portfolio: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aIjZT6re7n6o -------------------------------------snip The Federal Reserve valued the portfolio of Bear Stearns Cos. assets it accepted as part of the firm's takeover by JPMorgan Chase & Co. at $29 billion. The central bank said the net value of the portfolio was $29.019 billion as of July 16, according to a statement today, compared with $28.944 billion a week ago. Separately, lending to commercial banks through the Fed's discount window rose by $1.06 billion in the past week to an average $13.9 billion a day, while loans to Wall Street bond dealers averaged $9 million. The Fed loaned $28.8 billion last month to a company it formed to purchase the Bear Stearns investments, which as of mid-March included debt backed by mortgages and other items JPMorgan deemed too risky to take on. The Fed revalued the underlying assets of the portfolio as of June 30, compared with June 26, and will now assign a new ``fair value'' quarterly. Weekly calculations of the net portfolio value are updated to reflect accrued earnings and expenses. The Fed gave the fair-value estimate of Maiden Lane LLC's holdings as part of its weekly report on its balance sheet today. Maiden Lane, the Delaware corporation set up to manage the former Bear Stearns portfolio, is being counted on the balance sheet of the New York Fed. JPMorgan is absorbing the first $1.15 billion of any losses realized on the holdings. On July 3, the Fed said the portfolio's value had declined from about $30 billion in March to $28.9 billion as of June 26. The central bank opened lending to investment banks in March in an effort to prevent a meltdown of financial markets. The loan balance fell to zero after the Fed took on the Bear Stearns portfolio. -raghu. -- Confucius say, dirty book rarely dusty. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
