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Exhibit 784

Federal Reserve System: Opportunities Exist to Strengthen Policies and Processes for Managing Emergency Assistance (GAO-11-696)

Exhibit 784 ยท GAO report

Federal Reserve System: Opportunities Exist to Strengthen Policies and Processes for Managing Emergency Assistance (GAO-11-696)

Loans outstanding for the emergency programs peaked at more than $1 trillion in late 2008.

GAO's one-time audit under Dodd-Frank sec. 1109 of Fed emergency assistance, 1 December 2007 to 21 July 2010. Highlights: loans outstanding peaked above $1 trillion in late 2008; the Reserve Banks awarded 103 vendor contracts worth $659.4 million, and 8 of the 10 highest-value contracts were awarded noncompetitively. Table 8 (p. 131) totals $16,115 billion of loans across the broad-based programs, "not term-adjusted." p. 80: JPMorgan Chase was both a borrower and a vendor while its CEO served as a Class A New York Fed director; Lehman Brothers' CEO also sat on the board. p. 81: no evidence of systemic bias toward favoring institutions. Tables 10, 11, 16, 17, 19: BlackRock fees as vendor. Seven recommendations; the Board agreed they would benefit its response to future crises.

Source
U.S. Government Accountability Office
Date
July 2011
Quoted from
Highlights, "What GAO Found," first paragraph (unnumbered front matter)
Grade
Primary record
Document
https://www.gao.gov/assets/gao-11-696.pdf
Accessed
2026-11-09
Cited by
Findings citing this exhibit

Cited by

Finding POL-8.4
Primary record GAO's Table 8 totals $16,115 billion of loans across the Fed's broad-based emergency programs by adding every renewal of overnight loans without adjusting for term, and GAO found that loans outstanding peaked above $1 trillion in late 2008. Senator Sanders's release of 21 July 2011 described the audit as uncovering "$16 trillion in secret loans."
Finding POL-8.5
Primary record GAO reported that JPMorgan Chase was both a borrower and a vendor in the Fed's emergency programs while its chief executive served as a Class A director of the Federal Reserve Bank of New York. The New York Fed's releases name Jamie Dimon, JPMorgan Chase's chief executive, as a Class A director from January 2007, reelected in February 2010 for a term ending December 2012.
Finding POL-8.6
Primary record GAO identified at least 18 current and former directors from 9 Reserve Banks who were affiliated with institutions that used at least one emergency program, including 11 Class A directors who served between 2008 and 2010, and wrote that member-bank representatives on Reserve Bank boards create an appearance of a conflict of interest. GAO also found no evidence of systemic bias toward favoring particular institutions in the emergency programs.
Finding POL-8.8
Primary record From 2008 to 2010 the New York Fed paid BlackRock fees across seven contract lines that sum to $212.0 million in GAO's tables. Four of the lines, worth $194.5 million, were awarded noncompetitively: Maiden Lane ($107.6 million), Maiden Lane III ($50.0 million), Maiden Lane II ($24.1 million) and Citigroup valuation ($12.7 million).