Did the New York Federal Reserve Tank MF Global?

From FRBNY's website (emphasis ours):

*This week's purchase table includes $950 million of purchases that were made to replace transactions cancelled with MF Global Inc. (MF Global). MF Global, which had been a primary dealer, recently came under stress and ultimately a trustee was appointed pursuant to the Securities Investor Protection Act to liquidate the business. During this time, the Federal Reserve Bank of New York (the Bank) took progressive and proportionate steps to manage its exposure to the firm and ensure the ongoing effective implementation of monetary policy through open market operations.

The Bank ceased doing new business with MF Global and required the firm to post margin in respect of its $950 million outstanding agency MBS forward transactions with the Bank. The margin protected the Bank against potential exposure to MF Global due to fluctuations in the market value of the positions. When the firm was unable to meet a subsequent margin call on these transactions, the Bank declared an event of default, cancelled the transactions with MF Global and entered replacement transactions with other firms.

Replacement transactions were conducted in 30-year agency MBS and included purchases of: $300 million FNMA 3.5% coupons for December settlement, $100 million FNMA 4% coupons for November settlement, $200 million FNMA 4% coupons for December settlement, $250 million FHLMC 3.5% coupons for December settlement and $100 million FHLMC 3.5% coupons for January settlement.

The cost of replacing the cancelled transactions with MF Global was $3,089,843.75, which is based on the net difference between the price of the original trades and the price of the replacement transactions. The margin posted by MF Global was sufficient to cover the replacement cost.

When the trustee was appointed to liquidate the business, the Bank terminated MF Global's status as a primary dealer.

These measures were taken to protect the public interest and minimize risk to taxpayers, and under the framework of the primary dealer policy. The Federal Reserve did not suffer any loss as a result of the firm's failure.

So did the Fed return the difference between the $950 million margin posted and the replacement transactions costs, which would be about $946,910,156.25?

(ht Hilsenrath)