FRB – Securities Lending

  • On October 6, 2008, all five Board members voted to authorize the New York Reserve Bank to lend up to $37.8 billion to AIG secured by the investment grade debt securities previously lent by AIG’s insurance subsidiary to third parties (the Securities Lending Facility).  (p
  • The proceeds of the loan allowed AIG to return cash collateral to the securities lending counterparties as those counterparties returned the borrowed securities to AIG.
  • The maximum amount actually drawn by AIG under this facility was about $20.5 billion.  (p10)