Lehman Brothers Bankruptcy Loans
Date:
September 15, 2008
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Loans
Maximum Amount:
$138.00 billion Total of two loans from Federal Reserve to J.P. Morgan to promote orderly dismantling of Lehman Brothers assets and trades.
Notes:
Loan was issued by Fed to J.P. Morgan and paid back in its entirety. 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.