Thanks to Zerohedge, we know that the banks which were the top beneficiaries of the Agency Mortgage-Backed Securities (MBS) Purchase Program were two foreign-based banks.
This probably confirms suspicions that US banks loaded up foreign banks with mortgage junk, but there’s no reason to jump to conclusions.
This is what we do know:
The Fed purchased $293 billion in MBS from Deutsche Bank, and $287 billion from Credit Suisse.
Rounding out the list’s top six, and with significantly less MBS bought by the Fed, was Morgan Stanley, then Citi, then Merrill Lynch, then Goldman Sachs.
Background: the MBS purchase program was announced in November 2008, with a notable expansion in its scope in early 2009. The Fed says $1.25 trillion in agency MBS were purchased between January 2009 and March 2010.
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