Notice is a historical project of the Committee for a Responsible Federal Budget, which tracked the money spent by the 2009 stimulus bill. This site is not regularly updated.

Bear Stearns Funding

March 14, 2008
Policy Area: 
Economic Target: 
Action Type: 
Maximum Amount: 
$29.00 billion
Amount Spent: 
$1.42 billion

To prevent further market disorder in the wake of Bear Stearn's collapse, the Fed issued $29 billion in non-recourse loans to a holding company ("Maiden Lane, LLC") set up by J.P Morgan to manage and gradually liquidate Bear Stearns' assets.


Amount spent indicates loan extended as of 1/16/2013 (  The $29 billion in loans to Bear Stearns in 2008 is only worth $26 billion in 2009 dollars, which is how the Fed reports it on its balance sheet.  Activities of the Federal Reserve are not directly recorded in the federal budget.  However, each year the Federal Reserve remits a portion of its earnings to the general treasury.  This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.

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