Monthly Report on Credit and Liquidity Programs
and the Balance Sheet
|Abbreviations||Overview||System Open Market Account|
The Overview section of this report highlights developments in the operations of the Federal Reserve’s credit and liquidity programs and facilities since last month’s report, and presents data describing changes in the assets, liabilities, and total capital of the Federal Reserve System as of July 25, 2012.
FRBNY Announces Sale of Remaining Maiden Lane III LLC Securities
- On August 23, 2012, the Federal Reserve Bank of New York (FRBNY) announced that all remaining securities in the Maiden Lane III LLC portfolio have been sold. After the repayment of Maiden Lane III LLC’s liabilities to the FRBNY and American International Group, Inc. (AIG), net proceeds from sales of the securities, as well as cash flow the securities generated while held by Maiden Lane III LLC, provided a net gain of approximately $6.6 billion, including $737 million in accrued interest, for the benefit of the U.S. public. Additional information is available at www.newyorkfed.org/newsevents/news/markets/2012/an120823.html and www.newyorkfed.org/markets/ml3_sec_offerings.html.
Federal Reserve Board Begins Publication of Quarterly Financial Reports
- On August 27, 2012, the Federal Reserve Board published the first in a new series of quarterly financial reports presenting summary information on the combined financial position and results of operations of the Reserve Banks. The combined information includes the accounts and results of operations of each of the 12 Reserve Banks and several consolidated variable interest entities. All financial information included in the financial reports is unaudited. Quarterly financial reports for the first and second quarters of 2012 are available on the Federal Reserve Board’s website at www.federalreserve.gov/monetarypolicy/bst_fedfinancials.htm#quarterly.
FRBNY Conducts Repurchase Transactions
- On August 2, 2012, the FRBNY announced that beginning on August 3 it would conduct a series of small-value repurchase agreement (repo) transactions with primary dealers using all eligible collateral types. The FRBNY had not conducted a repo since December 2008, and since that time six primary dealers have been added and there have been several changes to the infrastructure of the repo market. As with the small-scale reverse repurchase agreement (reverse repo) transactions conducted since 2009, these repo operations are a matter of prudent planning by the Federal Reserve and are designed to have no material impact on the availability of reserves or on market rates. They do not represent a change in the stance of monetary policy and no inference should be drawn about the timing of any change in the stance of monetary policy in the future. The results of these operations are available on the FRBNY’s website at www.newyorkfed.org/markets/omo/dmm/temp.cfm. The outstanding amounts of repos are reported weekly in tables 1, 2, 8, and 9 of the H.4.1 statistical release.
Report on Credit and Liquidity Programs and the Balance Sheet to be Published Quarterly
- The August 2012 issue is the final Monthly Report on Credit and Liquidity Programs and the Balance Sheet. Since the summer of 2009, the Federal Reserve has prepared this report as part of its efforts to enhance transparency about the range of programs and tools implemented in response to the financial crisis and to ensure appropriate accountability to the Congress and the public. Over the last three years, most of those crisis-related programs have been wound down, and the Federal Reserve has expanded the publication of transaction-level and detailed portfolio holdings data for its operations. In light of these developments, the Federal Reserve will publish this report on a quarterly basis beginning later this year.
Federal Reserve System Selected Assets, Liabilities, and Total Capital
Table 1 reports selected assets and liabilities and total capital of the Federal Reserve System and presents the change in these components over the past month and since this time last year.
Figure 1 displays the levels of selected Federal Reserve assets and liabilities, securities holdings, and credit extended through liquidity facilities since 2007.
Table 1. Assets, liabilities, and capital of the Federal Reserve System
Billions of dollars
July 25, 2012
June 27, 2012
July 27, 2011
|Securities held outright||2,596||-17||-52|
|U.S. Treasury securities1||1,651||-16||+13|
|Federal agency debt securities1||91||-*||-21|
|Memo: Overnight securities lending3||9||-3||-11|
|Memo: Net commitments to purchase mortgage-backed securities4||31||+*||+31|
|Lending to depository institutions5||*||
|Central bank liquidity swaps6||27||+*||+27|
|Lending through the Term Asset-Backed Securities Loan Facility7||4||-1||-8|
|Net portfolio holdings of TALF LLC8||1||+*||+*|
|Support for specific institutions||9||-6||-43|
|Net portfolio holdings of Maiden Lane LLC9||2||-*||-19|
|Net portfolio holdings of Maiden Lane II LLC9||*||+*||-10|
|Net portfolio holdings of Maiden Lane III LLC9||7||-6||-14|
|Federal Reserve notes in circulation||1070||+2||+81|
|Term deposits of depository institutions||3||+3||+3|
|Other deposits of depository institutions||1,568||+76||-90|
|U.S. Treasury, general account||38||-80||-29|
|U.S. Treasury, supplementary financing account||*||0||-5|
* Less than $500 million. Return to table
1. Face value. Return to table
2. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Current face value, which is the remaining principal balance of the underlying mortgages. Does not include unsettled transactions. Return to table
3. Securities loans under the overnight facility are off-balance-sheet transactions. These loans are shown here as a memo item to indicate the portion of securities held outright that have been lent through this program. Return to table
4. Current face value. Includes commitments associated with outright purchases, dollar rolls, and coupon swaps. Return to table
5. Total of primary, seasonal, and secondary credit. Return to table
6. Dollar value of the foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. Return to table
7. Book value. Return to table
8. As of July 25, 2012, TALF LLC had purchased no assets from the FRBNY. Return to table
9. Fair value, reflecting values as of June 30, 2012. Fair value reflects an estimate of the price that would be received upon selling an asset if the transaction were to be conducted in an orderly market on the measurement date. Fair values are updated quarterly. Return to table
Figure 1. Credit and liquidity programs and the Federal Reserves balance sheet.