Newport Beach’s Pacific Investment Management Co. owes the Federal Reserve more than half of $7.1 billion it borrowed since early 2009 under a government program aimed at reviving consumer lending during the financial crisis, according to data released Wednesday on the central bank’s website.
Pimco, one of the largest bond fund managers, had $4.3 billion in outstanding loans as of Sept. 30 under the Federal Reserve’s Term Asset-Backed Securities Loan Facility, which was created in late 2008 to spur business and consumer credit.
Pimco received its first loan from the central bank in early 2009 for $292 million and its most recent in March of this year for $36.1 million.
The information released Wednesday provides the most detailed look at $3 trillion in loans the Fed made to financial firms during the depths of the recession through the recovery.
The public disclosure was prompted because of reform legislation passed in July that sought more transparency in the financial industry.
Pimco took 96 loans through TALF in a little more than year and was one of the largest recipients of the program.
Other big borrowers include FrontPoint Partners LLC, California Public Employees’ Retirement System, BlackRock Inc. and Morgan Stanley.
Fixed interest rates for Pimco’s loans varied from 1.7% to 3.9%.
The Fed and Treasury Department introduced TALF when the asset-backed securities market became severely disrupted in the financial meltdown, reducing the supply of credit to consumers and businesses.
As of Sept. 30, more than 60% of TALF loans have been repaid in full, with interest, ahead of their maturity dates.
Loan terms are up to five years.
