New York Fed

Release of Additional Information on Maiden Lane Portfolios

On March 31, the New York Fed announced that it has expanded the information made available to the public about the Maiden Lane portfolios. The new information is related to all of the holdings of Maiden Lane LLC (ML) other than residential whole loans, and all of the holdings of Maiden Lane II LLC (ML II) and Maiden Lane III LLC (ML III). The additional information includes the CUSIP number, descriptor, and the current principal balance or notional amount outstanding for all positions in the Maiden Lane portfolios. ML was formed to facilitate the merger of Bear Stearns and JPMorgan, and ML II and ML III were formed to facilitate the restructuring of the government’s financial support to AIG.  New York Fed Release.

TALF Updates

On January 15, the New York Fed issued revised TALF documents, FAQs and Conflicts of Interest Guidance for TALF Agents.  The Master Loan and Security Agreement was revised to: (i) provide that all releases of Collateral be settled on a “delivery versus payment” basis, (ii) remove the definition of “TALF Loan Payment Date Change Date”, and (iii) amend the definition of “Payment Date”.  New York Fed Release.  MLSA.  MLSA (showing changes).  FAQs.  FAQs (showing changes).  Conflicts of Interest Guidance.  Conflicts of Interest Guidance (showing changes).

Revised Policy for Administration of Primary Dealers

On January 11, the New York Fed published a revised policy on the administration of primary dealer relationships for existing and prospective primary dealers.  Changes to the policy include: (i) a more structured presentation of the standards expected of a primary dealer, (ii) a more formal application process for prospective primary dealers, (iii) an increase in the minimum net capital requirement from $50 million to $150 million, (iv) a seasoning requirement of one year of relevant operations before a prospective primary dealer may apply, and (v) a clear notice of possible sanctions in the event of noncompliance.  Release.  Revised Policy.  FAQs.

TALF Updates

On November 30, the New York Fed issued revised TALF documents and FAQs. The revised documents consist of: (i) the Form of Certification as to TALF Eligibility for CMBS and (ii) the Master Loan and Security Agreement. The New York Fed also announced that all borrowers have consented to an extension by one day of the period of time in which monthly principal and interest on underlying collateral is to be distributed. MLSA. MLSA (showing changes). FAQs. FAQ (showing changes). CMBS Certification. CMBS Certification (showing changes). New York Fed Release.