Vendor Information: Response to the
Global Financial Crisis
In response to the financial crisis that emerged in the summer of 2007, the New York Fed implemented a number of programs to support the liquidity of financial institutions and foster improved conditions in financial markets as part of the Federal Reserve's aggressive efforts. For transparency, the below includes vendor agreements related to those programs.

Vendor Agreements

The New York Fed made available the agreements with certain vendors related to its financial stability and liquidity activities. Please note that some information has been redacted in light of confidentiality concerns.

For additional information, please see the New York Fed's financial statements.

October 15, 2010 Update: The New York Fed's Investment Management Agreements with BlackRock Financial Management, Inc. have been updated.

CPFF

COMMERCIAL PAPER FUNDING FACILITY (CPFF)

VENDOR

DESCRIPTION

Pacific Investment Management Company, LLC (PIMCO)
(1 contract)

Investment management services

State Street Bank & Trust Company
(2 contracts and 1 fee letter)

Administrative and custodial services

Deloitte & Touche LLP1
(1 contract)

Audit

Note: Fees for the above vendors are paid by the CPFF LLC.

Maiden Lane LLC

MAIDEN LANE LLC (ML LLC), MAIDEN LANE II LLC (ML II),
MAIDEN LANE III LLC
(ML III)(AS INDICATED BELOW)

VENDOR

DESCRIPTION

BlackRock Financial Management, Inc. (BlackRock)
ML LLC  |  ML II  |  ML III

Investment management and advisory services for ML LLC, ML II & ML III

Ernst & Young LLP (E&Y)
(1 contract)

Closing work for ML LLC
(see note2 below); Note that E&Y performed closing work for ML II & ML III pursuant to a contract related to the AIG matter, which is linked below.

Deloitte & Touche LLP3
(3 contracts)

Audit services for ML LLC, ML II & ML III

State Street Bank & Trust Company
(2 contracts and 1 fee letter)

Administrative and custodial services for ML LLC

Bank Of New York Mellon
(BNY Mellon)
(2 contracts and 1 fee letter)

Administrative and custodial services for ML II and ML III

Note: Fees for the above vendors are paid by ML LLC, ML II,
or ML III.

TALF

TERM ASSET-BACKED SECURITIES LOAN FACILITY (TALF)

VENDOR

DESCRIPTION

BNY Mellon
(2 contracts and 1 fee letter)

Administrative and custodial services

Ernst & Young LLP

NOTE: E&Y performed accounting consulting services for TALF pursuant to a contract related to the AIG matter, linked below.

McKinsey & Company
(1 contract)

Consulting services

BlackRock Financial Management, Inc.
(1 contract)

Collateral monitoring services

PIMCO
(1 contract)

Collateral monitoring services

Trepp, LLC
(1 contract)

Collateral monitoring services
Agency Mortgage-Backed Securities Purchase Program

AGENCY MORTGAGE-BACKED SECURITIES PURCHASE PROGRAM

VENDOR

DESCRIPTION

BlackRock
(1 contract)

Investment services agreement

Wellington Management Company
(1 contract)

Investment services agreement

JPMorgan Chase
(1 contract and 2 fee letters)

Custodial services

Wellington Management Company
(1 contract)

Investment management services
(Expired)

BlackRock
(1 contract)

Investment management services
(Expired)

Goldman Sachs Asset Management
(1 contract)

Investment management services
(Expired)

PIMCO
(1 contract)

Investment management services
(Expired)

Wellington Management Company
(2 contracts)

Investment management services
(Expired)

BlackRock
(1 contract)

Investment management services
(Expired)

Goldman Sachs Asset Management
(1 contract)

Investment management services
(Expired)

PIMCO
(1 contract)

Investment management services
(Expired)

Wellington Management Company
(1 contract)

Investment management services
(Expired)
Citigroup Ringfencing Arrangement

CITIGROUP RINGFENCING ARRANGEMENT

VENDOR

DESCRIPTION

BlackRock
(1 contract)

Advisory services

Pricewaterhousecoopers
(1 contract)

Advisory services

Note: While the Bank initially pays the fees and costs related to the above vendors, those fees and costs are subsequently reimbursed by Citigroup.

AIG Lending Arrangement

AIG LENDING ARRANGEMENT

VENDOR

DESCRIPTION

Ernst & Young LLP
(1 contract)

Advisory services
(see note4 below) ; Note that pursuant to this contract, E&Y also provided services with respect to ML LLC, ML II, ML III, TALF , in addition to its services related to AIG.

Houlihan Lokey
(4 engagement letters)

Advisory Services

Morgan Stanley
(2 contracts)

Advisory services;
Note: Pursuant to this contract, work was also performed for ML II and ML III.

Note: While the Bank initially pays the fees and costs related to the above vendors, those fees and costs are subsequently reimbursed by AIG. Certain expenses under the E&Y contract were paid by ML LCC, ML II, ML III and TALF LLC.

Credit, Investment and Payment Risk

CREDIT, INVESTMENT AND PAYMENT RISK

VENDOR

DESCRIPTION

Oliver Wyman Group
(1 contract)

Advisory services
Legal Services

LEGAL SERVICES

VENDOR

Davis Polk & Wardwell LLP
(1 contract)

Cleary Gottlieb Stein & Hamilton LLP
(2 contracts)

Sidley Austin LLP
(1 contract)

Simpson Thacher & Bartlett LLP
(1 contract)

Note: The above list of law firms are those firms on which the Bank has relied significantly across a range of financial stability activities. The fees paid to the above list of law firms have been paid out of one or more of the following: (1) the Bank, (2) Maiden Lane LLC (or one of the trusts underneath Maiden Lane LLC), (3) Maiden Lane II LLC, (4) Maiden Lane III LLC, (5) CPFF LLC and (6) Money Market Investor Funding Facility LLC. Also, as is customary in financing transactions, the Bank's legal fees were paid by the party seeking financing in some cases.


Additional Information
Code of Conduct
18 U.S.C. Section 208



1 The parties to this contract are Deloitte & Touche and the Board of Governors of the Federal Reserve System. Inquires regarding this contract should be directed to the Board of Governors of the Federal Reserve System.

2 Although the detailed description of the scope of work set forth in this contract has been redacted due to confidentiality concerns, a general description of the scope of work is as follows: E&Y was contracted to perform due diligence on the assets in the Maiden Lane LLC portfolio to assess and evaluate the quality and accuracy of financial information provided by Bear Stearns & Co. and obtained from external sources prior to acquisition by the LLC. E&Y identified all cashflows from the determination date through the closing date to facilitate settlement of the assets into the LLC. E&Y tracked and verified post close cash flow adjustments with the Investment Manager.

3 The parties to these contracts are Deloitte & Touche and the Board of Governors of the Federal Reserve System. Inquires regarding these contracts should be directed to the Board of Governors of the Federal Reserve System

4 Although the detailed description of the scope of work set forth in this contract has been redacted due to confidentiality concerns, a general description of the scope of work is as follows:

With respect to AIG, E&Y was contracted to provide advice on the insurance businesses; to perform valuations of the entities posted as collateral; to provide assistance in developing cash flow projections; to provide support for the divestiture process; to provide advice and assistance with domestic and global regulatory issues; to identify and report on compliance with covenants within the Credit Agreement; to provide assistance in assessing accounting and tax considerations, including off-balance sheet arrangements; to provide project management support; to provide advice and assistance on compensation issues; to provide assistance and support in assessing internal audit at the firm; to provide advice and due diligence on contemplated transactions, including SPVs and securitizations; to develop a document repository; and to provide advice and assistance in monitoring business unit performance within AIG.

With respect to ML LLC, ML II, ML III, E&Y was contracted to perform a diagnostic on the operational and financial close procedures, and to assist with the analysis of accounting matters. In addition, with respect to ML II, E&Y was contracted to perform due diligence on the assets to assess and evaluate the quality and accuracy of financial information provided by AIG and obtained from external sources prior to inclusion in the trust. E&Y identified all cashflows from the pricing date through the closing date to facilitate settlement of the assets into the LLC. E&Y tracks and verifies with the administrator all post close factor changes through August 31, 2009. With respect to ML III, E&Y was contracted to perform due diligence on the assets to assess and evaluate the quality and accuracy of financial information provided by AIGFP and obtained from external sources prior to inclusion in the trust. E&Y identified all cashflows from the pricing date through the closing date to facilitate settlement of the assets into the LLC. E&Y tracks and verifies with the administrator all post close factor changes through August 31, 2009. With respect to TALF, E&Y assisted with accounting procedures and the analysis of accounting matters.
By continuing to use our site, you agree to our Terms of Use and Privacy Statement. You can learn more about how we use cookies by reviewing our Privacy Statement.   Close