The Federal Reserve Board released data Thursday indicating slowing losses related to the central bank's investments in fallen institutions.
Maiden Lane III, a limited liability corporation created to take on American International Group's collateralized debt obligations, posted a $2.3 billion quarter-over-quarter gain at June 30, for a total of $21.14 billion.
The growth makes up for $3.4 billion in value the Maiden Lane lost during the first quarter, bringing it within striking distance of its initial $21.15 billion valuation.
The other two Maiden Lane facilities continue to lose money. The value of Maiden Lane II, which targets AIG's holdings of residential mortgage-backed securities, declined by $616 million, far less than the $1.6 billion loss in the first quarter. The value of Maiden Lane, which facilitated JPMorgan Chase & Co.'s acquisition of Bear Stearns Cos., lost $186 million.
Meanwhile, lending through the Fed's discount window grew less than 1%, to $109.9 billion. Traditional borrowing by commercial banks increased 8.7%, to $36.4 billion, and no loans were made to weak financial institutions.
Reserves held by financial institutions at the central bank fell 4.4%, to $747.1 billion. The Fed's balance sheet shrank 1.9%, to $2.003 trillion.