Maiden Lane is the name of a street that runs by the New York Federal Reserve building.
The first Maiden Lane LLC was created to receive the 30 billion dollars (29 from the New York Federal Reserve Bank and 1 from J P Morgan Chase) which was used to buy assets out of the Bear Stearns liquidation.
Maiden Lane II LLC and Maiden Lane III were created to assist AIG, the former buying mortgage securities from AIG entities, the latter buying mortgage securities from non-AIG entities to satisfy AIG obligations under credit default swaps.
The Federal Reserve (through entities it controls) has probably become the largest owner of troubled mortgage-backed securities, and is still buying. The Federal Reserve is printing money and deciding who gets relief from troubled mortgage securities.
On many of the securities it buys, the Federal Reserve will be the sole entity with any beneficial interest, and can therefore directly or indirectly instruct the servicers whether to go fast or slow on foreclosures.
This makes the Federal Reserve a big decision-maker regarding the future of house prices.
