State Street Corp. and JPMorgan Chase & Co. profited during the financial crisis by borrowing $200 billion almost risk-free from the Federal Reserve under a program intended to rescue money market mutual funds.
The Fed lent State Street a total of $89 billion to buy securities from the funds in 2008 and 2009 after the credit crisis triggered by the collapse of Lehman Brothers Holdings Inc., according to Fed data compiled by Bloomberg News from information released in response to Freedom of Information Act requests, related court orders and an act of Congress. The central bank also guaranteed against losses on the short-term notes as long as they met eligibility guidelines.
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