Chicago’s Arie and Ida Crown Memorial, the Crown Investment Fund, the Edgar D. Jannotta Jr. Revocable Trust and Allstate were among the “material investors” in various trusts and funds that borrowed under Federal Reserve programs aimed at easing the financial crisis, newly released records show.
The Term Asset-Backed Securities Loan Facility, or TALF, was set up by the Fed in November 2008 and began lending in March 2009.
Typically, asset-backed securities are used to finance a variety of consumer and business credit, including small business loans, auto loans, student loans and credit card loans. But the financial crisis reduced the supply of credit, and among the measures that the Fed took was creating TALF, which encouraged the issuance of such securities. The way it worked under the program, the Fed issued loans with a term of up to five years to holders of eligible ABS. The TALF financing was intended to improve demand for ABS and thereby spur new issuance of ABS to increase the flow of credit to households and businesses, the Fed said.
Major funds such as Pimco participated as borrowers in TALF, as did other vehicles, such as CARP LLP and Cornerstone/ICA TALF Fund LLC, in which the Crown and Jannotta interests were invested, respectively, according to newly released records from the Federal Reserve about 21,000 transactions aimed to help cure the credit crisis. Allstate benefitted indirectly from TALF because it was an investor in TRTF LLC, which also borrowed from TALF.
CARP, for example, borrowed $44 million through four TALF transactions. It wasn’t clear what stakes the investors had in the funds and trusts.
Nationally, Major League Baseball’s pension fund was also an investor in a TALF borrower.
The Crown family’s Arie and Ida Crown Memorial supports charitable programs. Edgar D. Jannotta Jr. is a former managing principal of GTCR, a Chicago-based private-equity firm.
The Fed said that more than 60 percent of TALF loans have been repaid in full, with interest, ahead of their legal maturity dates. All loans that haven’t been repaid in full early are still current in their payments of principal and interest and no collateral has been surrendered in lieu of payment, the Fed said.
A look at other Chicago-area investments:
|
Borrower
|
Material investor(s)
|
Mat. inv. city
|
| BlackRock Core Bond Trust | First Trust Advisors LP | Wheaton |
| BlackRock Core Bond Trust | First Trust Portfolios LP | Wheaton |
| BlackRock Core Bond Trust | The Charger Corporation | Wheaton |
| The BlackRock Income Opportunity Trust Inc. | First Trust Advisors LP | Wheaton |
| The BlackRock Income Opportunity Trust Inc. | First Trust Portfolios LP | Wheaton |
| The BlackRock Income Opportunity Trust Inc. | The Charger Corporation | Wheaton |
| CARP LLP | Arie and Ida Crown Memorial | Chicago |
| CARP LLP | The Crown Investment Fund | Chicago |
| Cornerstone TALF Fund One, LLC | Cornerstone Investment Management, LLC | Hinsdale |
| Cornerstone/ICA TALF Fund, LLC – Series A | Innovative Capital Advisors, LLC | Chicago |
| Cornerstone/ICA TALF Fund, LLC – Series A | Cornerstone Investment Management, LLC | Hinsdale |
| Cornerstone/ICA TALF Fund, LLC – Series C | Innovative Capital Advisors, LLC | Chicago |
| Cornerstone/ICA TALF Fund, LLC – Series C | Cornerstone Investment Management, LLC | Hinsdale |
| Cornerstone/ICA TALF Fund, LLC – Series C | Edgar D. Jannotta Jr. Revocable Trust | N/P |
| Cornerstone/ICA TALF Fund, LLC – Series B | Innovative Capital Advisors, LLC | Chicago |
| Cornerstone/ICA TALF Fund, LLC – Series B | Cornerstone Investment Management, LLC | Hinsdale |
| MetWest Enhanced TALF Strategy Fund, L.P. | Retirement Benefit Trust of RR Donnelly & Sons | Chicago |
| Rosemont TALF SPV, LLC | Namtor Distressed Fund LP | Chicago |
| Rosemont TALF SPV, LLC | The Ashland Loyalty Fund, LLC | Chicago |
| Royal Palm Insurance Company | Ritchie Multi-Strategy Global, LLC | Wheaton |
| TRTF, LLC | Allstate Insurance Company | Northbrook |
