NEW YORK, July 17 (Reuters) - Bond fund manager Pacific Investment Management Company (Pimco) is earning $3 million per quarter for managing a Federal Reserve program aimed at supporting the short-term funding market.
The New York Federal Reserve released contracts with fund managers, lawyers and banks on Friday, in the latest part of the central bank’s effort to be more transparent.
The Federal Reserve set up the commercial paper funding facility (CPFF) last year after markets froze up in fear of huge losses.
Pimco will also earn an average asset-management fee of 0.25 basis point per quarter on the month-end assets in the program.
In addition, asset manager BlackRock (BLK.N) for its management role in various Fed programs stands to earn $13.5 million in one-off fees.
The New York Fed recently reported that BlackRock will earn a minimum of $43 million for one year for management of the Maiden Lane Facilities, whose assets include illiquid securities from Bear Stearns and American International Group (AIG.N). If the work extends for three years, BlackRock will earn a minimum of $92 million.
BlackRock also stands to earn from its management of the asset mortgage-backed securities program, as well as $12 million plus expenses to manage toxic assets taken off Citigroup’s books in the government’s lifeline to the bank.
Additionally, partners of law firm Davis, Polk & Wardwell LLP have earned from $1,055 to $875 per hour, while associates that have not been admitted to the bar were paid as much as $675 per hour. Legal assistants earned up to $355 an hour. (Reporting by Kristina Cooke and Chris Sanders; Editing by Leslie Adler)