While the government had pledged not to fund a rescue of Lehman, the disclosure on Tuesday showed authorities that were taking other financial steps to prevent markets from descending into chaos.
JPMorgan Chase & Co advanced $87 billion to the units on Monday to help clear and facilitate securities transactions with customers and clients of Lehman "to avoid disruption of financial markets," according to documents filed in the U.S. Bankruptcy Court for the Southern District of New York.
Lehman and the New York Fed had requested the advance, known as a "commencement date advance" and the New York Fed repaid it, according to filings.
In effect, the New York Fed lent the funds to the units.
A representative for the New York Fed declined to comment.
TVNL Comment: Any questions about the central banking conspiracy?
House Democrat calls Trump's new tariffs 'an end-run around the Supreme Court and Congress', not an...
The board game Monopoly has always taught some important economic lessons: The benefits of owning real...
President Donald Trump took executive action on July 20 to impose a new 50% tariff on...
For his work chairing the US Federal Reserve, Alan Greenspan, who has died aged 100, was...
