FEDERAL RESERVE NAMES JPMORGAN CUSTODIAN OF MORTGAGE-BACKED SECURITIES PROGRAM

Posted February 3, 2009

NEW YORK – The Federal Reserve has chosen JPMorgan Worldwide Securities Services (WSS), a division of JPMorgan Chase & Co., as custodian for its program to purchase mortgage-backed securities (MBS). The program, which began on January 5, 2009, will purchase up to $500 billion in MBS that are backed by Fannie Mae, Freddie Mac and Ginnie Mae. The goal of the program, which was originally announced on November 25, 2008, is to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally.

“We are pleased to be able to support the efficient operation of the MBS program, while at the same time minimizing operational and financial risks,” says Conrad Kozak, CEO of JPMorgan WSS.

Via a competitive process, the Federal Reserve selected four investment managers – BlackRock Financial Management Inc., Goldman Sachs Asset Management LP, Pacific Investment Management Company LLC (PIMCO), and Wellington Management Company, LLP – and a custodian – JPMorgan – to implement the program. The selection criteria were based on each institution’s operational capacity, size and overall experience in the MBS market.