                                                                     For use at 12:00 p.m., eastern time
                                                                                              Thursday
                                                                                       March 11, 2010




FEDERAL RESERVE statistical release


Z.1




Flow of Funds Accounts
of the United States

Flows and Outstandings
Fourth Quarter 2009




Board of Governors of the Federal Reserve System, Washington DC 20551

                               Flow of Funds Summary Statistics
                               CC




                                            Fourth Quarter 2009

         Debt of the domestic nonfinancial sectors is         showing    a  decline.   The   1   percent decline    in
estimated to have expanded at a seasonally adjusted           nonfinancial business debt in 2009 as a whole was the
annual rate of 1 percent in the fourth quarter of 2009,      first yearly decline since the early 1990s.
about 1 percentage points slower than in the previous
quarter. Private debt contracted in the fourth quarter,                 State and local government debt expanded at
while government debt continued to expand, albeit at a        an annual rate of 4 percent last quarter, about the
slower pace than in the preceding quarter. For 2009 as a      same as for the year 2009 as a whole.            Federal
whole, domestic nonfinancial debt rose 3 percent,            government debt increased at an annual rate of 12
about 2 percentage points below the 2008 pace.               percent in the fourth quarter, about half the rate of the
                                                              past two years; for the year 2009, federal government
         Household debt contracted at an annual rate of       debt rose almost 23 percent.
1 percent in the fourth quarter, its seventh consecutive
quarter of decline.   Home mortgage debt fell at an                     At the end of the fourth quarter of 2009, the
annual rate of  percent, a significantly slower decline      level of domestic nonfinancial debt outstanding was
than in the third quarter, while consumer credit              $34.7 trillion; household debt was $13.5 trillion,
contracted at an annual rate of 5 percent. In 2009,          nonfinancial business debt was $11.0 trillion, and total
household debt contracted 1 percent, the first yearly        government debt was $10.2 trillion.
decline in household debt reported in the flow of funds
accounts.                                                               Household net worth--the difference between
                                                              the value of assets and liabilities--was an estimated
         Nonfinancial business debt contracted at an          $54.2 trillion at the end of the fourth quarter, up
annual rate of 3 percent in the fourth quarter, with all     $0.7 trillion from the third quarter.   For 2009 as a
credit market instruments except corporate bonds              whole, household net worth increased $2.8 trillion.


Growth of Domestic Nonfinancial Debt1
                                            P
                                                P




Percentage changes; quarterly data are seasonally adjusted annual rates
                                                                                 State and
                           Total             Households      Business                                   Federal
                                                                                local govts.
 2000                       5.0                    9.1          9.3                  1.4                 -8.0
 2001                       6.3                    9.6          5.7                  8.8                 -0.2
 2002                       7.4                   10.8          2.8                11.1                   7.6
 2003                       8.1                   11.8          2.3                  8.3                 10.9
 2004                       8.9                   11.0          6.3                  7.3                  9.0

 2005                       9.5                   11.1          8.8                10.2                   7.0
 2006                       9.0                   10.0         10.5                  8.3                  3.9
 2007                       8.7                    6.7         13.4                  9.5                  4.9
 2008                       5.9                    0.1          5.2                  2.5                 24.2
 2009                       3.3                   -1.7         -1.8                  4.8                 22.7

 2008:Q1                    5.5                    3.1          7.8                  3.9                  8.1
      Q2                    3.2                   -0.0          6.4                  1.8                  5.9
      Q3                    8.1                   -0.6          5.0                  3.9                 39.2
      Q4                    6.1                   -1.9          1.2                  0.2                 37.0

 2009:Q1                    4.2                   -1.3          0.4                  4.7                 22.6
      Q2                    4.5                   -1.7         -2.1                  4.1                 28.2
      Q3                    2.9                   -2.7         -2.3                  5.5                 20.6
      Q4                    1.6                   -1.2         -3.2                  4.7                 12.6
1. Changes shown are on an end-of-period basis.

                                              Table of Contents



Title                                                                            Table     Page



Flow of Funds Accounts, Fourth Quarter 2009                                                 1

Availability of Data for Latest Quarter                                                     4

Debt Growth by Sector                                                            D.1        7

Borrowing by Sector                                                              D.2        8

Debt Outstanding by Sector                                                       D.3        9




                                                                    Flows            Levels
Title                                                           Table    Page    Table     Page




Summaries

Total Net Borrowing and Lending in Credit Markets               F.1       10     L.1        60

Credit Market Borrowing by Nonfinancial Sectors                 F.2       11     L.2        61

Credit Market Borrowing by Financial Sectors                    F.3       11     L.3        61

Credit Market Borrowing, All Sectors, by Instrument             F.4       12     L.4        62

Total Liabilities and Its Relation to Total Financial Assets    F.5       12     L.5        62

Distribution of Gross Domestic Product                          F.6       13

Distribution of National Income                                 F.7       14

Saving and Investment                                           F.8       15

Net Capital Transfers                                           F.9       16

Derivation of Measures of Personal Saving                       F.10      17     L.10       63

                                                            Flows            Levels

Title                                                   Table    Page    Table     Page


Sectors

Households and Nonprofit Organizations                  F.100     18     L.100      64

Nonfinancial Business                                   F.101     19     L.101      65

         Nonfarm Nonfinancial Corporate Business        F.102     20     L.102      66

         Nonfarm Noncorporate Business                  F.103     21     L.103      67

         Farm Business                                  F.104     21     L.104      67

State and Local Governments                             F.105     22     L.105      68

Federal Government                                      F.106     23     L.106      68

Rest of the World                                       F.107     24     L.107      69

Monetary Authority                                      F.108     25     L.108      70

Commercial Banking                                      F.109     26     L.109      71

         U.S.-Chartered Commercial Banks                F.110     27     L.110      72

         Foreign Banking Offices in U.S.                F.111     28     L.111      73

         Bank Holding Companies                         F.112     29     L.112      74

         Banks in U.S.-Affiliated Areas                 F.113     29     L.113      74

Savings Institutions                                    F.114     30     L.114      75

Credit Unions                                           F.115     31     L.115      76

Property-Casualty Insurance Companies                   F.116     31     L.116      76

Life Insurance Companies                                F.117     32     L.117      77

Private Pension Funds                                   F.118     32     L.118      77

State and Local Government Employee Retirement Funds    F.119     33     L.119      78

Federal Government Retirement Funds                     F.120     33     L.120      78

Money Market Mutual Funds                               F.121     34     L.121      79

Mutual Funds                                            F.122     34     L.122      79

                                                        Flows            Levels

Title                                               Table    Page    Table     Page



Closed-End and Exchange-Traded Funds                F.123     34     L.123      79

Government-Sponsored Enterprises                    F.124     35     L.124      80

Agency- and GSE-backed Mortgage Pools               F.125     35     L.125      80

Issuers of Asset-Backed Securities                  F.126     36     L.126      81

Finance Companies                                   F.127     36     L.127      81

Real Estate Investment Trusts                       F.128     37     L.128      82

Security Brokers and Dealers                        F.129     38     L.129      83

Funding Corporations                                F.130     38     L.130      83




Instruments

Gold and Official Foreign Exchange Holdings         F.200     39     L.200      84

SDR Certificates and Treasury Currency              F.201     39     L.201      84

U.S. Deposits in Foreign Countries                  F.202     39     L.202      84

Net Interbank Transactions                          F.203     40     L.203      85

Checkable Deposits and Currency                     F.204     41     L.204      86

Time and Savings Deposits                           F.205     42     L.205      87

Money Market Mutual Fund Shares                     F.206     42     L.206      87

Federal Funds and Security Repurchase Agreements    F.207     43     L.207      88

Open Market Paper                                   F.208     43     L.208      88

Treasury Securities                                 F.209     44     L.209      89

                                                                     Flows             Levels

Title                                                           Table     Page    Table     Page



Agency- and GSE-backed Securities                               F.210     45      L.210      90

Municipal Securities and Loans                                  F.211     46      L.211      91

Corporate and Foreign Bonds                                     F.212     46      L.212      91

Corporate Equities                                              F.213     47      L.213      92

Mutual Fund Shares                                              F.214     47      L.214      92

Bank Loans Not Elsewhere Classified                             F.215     48      L.215      93

Other Loans and Advances                                        F.216     49      L.216      94

Total Mortgages                                                 F.217     50      L.217      95

         Home Mortgages                                         F.218     51      L.218      96

         Multifamily Residential Mortgages                      F.219     51      L.219      96

         Commercial Mortgages                                   F.220     52      L.220      97

         Farm Mortgages                                         F.221     52      L.221      97

Consumer Credit                                                 F.222     53      L.222      98

Trade Credit                                                    F.223     53      L.223      98

Security Credit                                                 F.224     53      L.224      98

Life Insurance and Pension Fund Reserves                        F.225     54      L.225      99

Taxes Payable by Businesses                                     F.226     54      L.226      99

Proprietors' Equity in Noncorporate Business                    F.227     54      L.227      99

Total Miscellaneous Financial Claims                            F.228     55      L.228     100

         Identified Miscellaneous Financial Claims - Part I     F.229     56      L.229     101

         Identified Miscellaneous Financial Claims - Part II    F.230     57      L.230     102

         Unidentified Miscellaneous Financial Claims            F.231     58      L.231     103

Sector Discrepancies                                            F.11      59

Instrument Discrepancies                                        F.12      59

                                                                    Balance        Reconciliation
                                                                     Sheet
Title                                                            Table     Page    Table     Page



Balance Sheet and Reconciliation Tables

Households and Nonprofit Organizations                           B.100    104      R.100     107

Nonfinancial Corporate Business                                  B.102    105      R.102     108

Nonfarm Noncorporate Business                                    B.103    106      R.103     109




                                                                     Flows             Levels
Title                                                            Table     Page    Table     Page



Supplementary Tables

Nonprofit Organizations                                          F.100.a  110      L.100.a   111

Consolidated Statement for Federal, State, and Local Governments F.106.c  112      L.106.c   113

Private Pension Funds: Defined Benefit Plans                     F.118.b  114      L.118.b   115

Private Pension Funds: Defined Contribution Plans                F.118.c  114      L.118.c   115

Individual Retirement Accounts (IRAs)                            F.225.i  114      L.225.i   115

Flow of Funds Matrix for 2009                                             116                117

Balance Sheet of Households and Nonprofit Organizations
 with Equity Detail                                                                B.100.e   118

                                                                                                                                 1




                      Flow of Funds Accounts, Fourth Quarter 2009

          This publication presents the flow of funds                 Growth rates in table D.1 are calculated by
accounts for 2009:Q4.                                        dividing seasonally adjusted flows from table D.2 by
                                                             seasonally adjusted levels at the end of the previous
Data revisions and other changes. The statistics in          period from table D.3. Seasonally adjusted levels in
the attached tables reflect the use of new or revised        flow of funds statistics are derived by carrying forward
source data. Most significant revisions appear in recent     year-end levels by seasonally adjusted flows. Growth
quarters; however, new source information resulted in        rates calculated from changes in unadjusted levels
changes to data for earlier periods.                         printed in table L.2 can differ from those in table D.1.


1.        The monetary authority sector (tables F.108        Relation of Flows to Outstandings.                       Estimates of
and L.108) was modified to include an additional asset       financial assets and liabilities outstanding are linked to
category, corporate equities, reflecting the Federal         data on flows.        However, figures on outstandings
Reserve's preferred interests in two special purpose         contain discontinuities or breaks in series that could
vehicles, AIA Aurora LLC and ALICO Holdings LLC.             affect analysis of particular relationships over time.
These two limited liability companies are now included       Specifically, outstandings in the flow of funds accounts
in the funding corporation sector (tables F.130 and          are related to the flows in the following way:
L.130) and an additional asset category, corporate
equities, has been added on that table to reflect their      Outstanding = Outstanding
                                                                              t                t-1     + Flow + Discontinuityt
                                                                                                                  t
                                                                             B
                                                                               B
                                                                                                 B
                                                                                                        B
                                                                                                                 B
                                                                                                                   B
                                                                                                                                     B
                                                                                                                                       B




holdings    of  the   common     stock   of   American       where "t" is the time period.

International Assurance Company Ltd (AIA) and
American Life Insurance Company (ALICO), two life                     Discontinuities         result         from      changes        in

insurance subsidiaries of AIG.                               valuation, breaks in source data, and changes in
                                                             definitions.       For most     series,         the     value     of the

2.        The funding corporation sector (tables F.130       discontinuity       is zero     for          nearly all time periods.

and L.130) was modified to include funds associated          However, in a few instances, the discontinuity is

with the Legacy Securities Public-Private Investment         nonzero for almost all time periods, or is quite large in a

Program (S-PPIP), a coordinated effort between               particular quarter, such as a period when there is a

Treasury, the FDIC, and the Federal Reserve.        The      sharp increase or decrease in equity prices or a major

funds purchase mortgage-backed securities (included in       break in source data.

corporate   bonds)   using   loans  from   the   federal
government (included in other loans and advances) and                 The discontinuities in a series can distort

equity   from   private   investors  and   the   federal     estimated rates of growth in assets and liabilities

government (included in equity investment under              between     periods.          In order         to      minimize    these

PPIP).                                                       distortions, percentage changes in assets and liabilities
                                                             in flow of funds releases should be calculated as:

Explanatory notes for tables D.1, D.2, and D.3.
Domestic debt comprises credit market funds borrowed         Percentage change = (Flow / Outstanding
                                                                                    t              t                      t-1
                                                                                                                            ) * 100
                                                                                       B
                                                                                         B
                                                                                                      B
                                                                                                         B
                                                                                                                         B
                                                                                                                              B




by   U.S. entities from   both  domestic and foreign
sources,   while  foreign   debt   represents  amounts       Preliminary Estimates. Figures shown for the most

borrowed by foreign financial and nonfinancial entities      recent quarter in these tables are based on preliminary

in  U.S. markets only.     Financial sectors consist of      and incomplete information. A summary list of the

government-sponsored      enterprises,   agency-    and      principal sources of information available when the

GSE-backed     mortgage     pools, and private financial     latest quarter's data were compiled is provided in a table

institutions.  Credit market debt consists of debt           following this introduction. The distinction between

securities, mortgages, bank loans, commercial paper,         "available" data and "missing" data is not between final

consumer credit, U.S. government loans, and other            and preliminary versions of data, but rather between

loans and advances; it excludes trade debt, loans for the    those source estimates that are fully ready when the

purpose of carrying securities, and funds raised from        latest quarterly publication is compiled and those that

equity sources.                                              are not yet completed. However, the items that are

2



shown as available are, in general, also preliminary in       The Internet site also provides quarterly data beginning
the sense that they are subject to revision by source         in 1952, organized in compressed files that correspond
agencies.                                                     to the tables published in this release. There are files for
                                                              quarterly data for seasonally adjusted flows, unadjusted
Margins of Uncertainty. Flow of funds statistics are          flows, outstandings, balance sheets, and debt (tables
subject to uncertainties resulting from measurement           D.1, D.2, and D.3). These data are also available as a
errors in source data, incompatibilities among data from      customizable download dataset through the Data
different sources, potential revisions in both financial      Download Program (DDP) at the following location:
and nonfinancial series, and incomplete data in parts of
the accounts. The size of these uncertainties cannot be       www.federalreserve.gov/datadownload/Choose.aspx?rel=Z.1

quantified in precise statistical terms, but allowance for
them is explicitly made throughout the accounts by the                  A Guide to the Flow of Funds Accounts           is
inclusion of "discrepancies" for various sectors and          available. The 1,200-page Guide, published in two
instrument types. A discrepancy for a sector is the           volumes in January 2000, explains in detail how the
difference between its measured sources of funds and          U.S. financial accounts are prepared and the principles
its measured uses of funds. For an instrument category,       underlying the accounts. The Guide can be purchased
a discrepancy is the difference between measured funds        for $20.00 from the Board's Publications Services.
borrowed    through    the   financial   instrument  and      Publications Services accepts orders accompanied by
measured funds lent through that instrument. The size         checks as well as credit card orders.
of such discrepancies relative to the main asset or
liability components is one indication of the quality of                The Internet site for this release at the location
source data,   especially   on an annual       basis. For     shown above contains a link to an order form for the
quarterly data, differences in seasonal adjustment            Guide that can be mailed or faxed to Publications
procedures for financial and nonfinancial components          Services. In addition, the Internet site includes a link to
of the accounts sometimes result in discrepancies that        the Guide's descriptions of the tables in the flow of
cancel in annual data.                                        funds accounts.


Availability of Data. Flow of funds statistics are            Subscription Information. The Federal Reserve Board
updated about ten weeks following the end of a quarter.       charges for subscriptions to all statistical releases.
This publication -- the Z.1 release -- is available from      Inquiries for releases should be directed to:
the Board's Publications Services. Flow of funds data
are also available electronically through the Internet at                 Publications Services, Stop 127
the following location:                                                         Board of Governors
                                                                           of the Federal Reserve System

www.federalreserve.gov/releases/Z1                                  20th Street and Constitution Avenue, N.W.
                                                                              Washington, DC 20551
                                                                                  (202) 452-3244

                                        3




[THIS PAGE INTENTIONALLY LEFT BLANK]

4



                          Availability of Data for Latest Quarter



                                   Available at time of publication            Major items missing
                                   U
                                                                       U
                                                                               U
                                                                                                      U




1. National income and              Second estimate, seasonally adjusted,       Unadjusted flows since 2007 for
   product accounts (NIPA)          for 2009:Q4.                                the government sectors.
                                                                                Unadjusted flows since 2006 for
                                                                                all other sectors.

2. Households and nonprofit         Estimates for this sector are largely residuals and are derived from data for
   organizations sector             other sectors. Availability of data depends on schedules for other sectors.
   (tables F.100 and L.100)         Data for consumer credit, which are estimated directly, are available
                                    through 2009:Q4. The source for nonprofit organizations data (tables
                                    F.100.a and L.100.a) is the Internal Revenue Service Statistics of Income.
                                    Data for nonprofit organizations are available for 1987 through 2000.

3. Nonfarm nonfinancial             Quarterly Financial Report (QFR) of           Statistics of Income data since
   corporate business               the Census Bureau through 2009:Q3;            2007. QFR data since 2009:Q3.
   (tables F.102 and L.102)         Internal Revenue Service Statistics of
                                    Income (IRS/SOI) final data through
                                    2007; securities offerings, mortgages,
                                    bank loans, commercial paper, and
                                    other loans through 2009:Q4.

4. Nonfarm noncorporate             IRS/SOI data through 2007; bank and           Statistics of Income data since
   business                         finance company loans and mortgage            2007.
   (tables F.103 and L.103)         borrowing through 2009:Q4.

5. Farm business                    Mortgages, bank loans, loans from             Consumption of fixed capital
   (tables F.104 and L.104)         government-sponsored enterprises,             and undistributed profits since
                                    U.S. government loans to farms, and           2008.
                                    equity in government-sponsored
                                    enterprises through 2009:Q4;
                                    preliminary data for checkable deposits
                                    and currency and trade payables
                                    through 2007.

6. State and local governments     Gross offerings and retirements of             Total financial assets since
  (tables F.105 and L.105)         municipal securities, deposits at banks,       2007:Q2 and selected financial
                                   and nonmarketable U.S. government              asset detail since 2004:Q2.
                                   security issues through 2009:Q4; total
                                   financial assets through 2007:Q2 from
                                   the Census Bureau; breakdown of
                                   financial assets through 2004:Q2 from
                                   the comprehensive annual financial
                                   reports of state and local governments.

7. Federal government              Data from the Monthly Treasury                 None.
   (tables F.106 and L.106)        Statement of Receipts and Outlays and
                                   Treasury data for loan programs and
                                   the Troubled Assets Relief Program
                                   (TARP) through 2009:Q4.

                                                                                                               5



8. Rest of the world                 Balance of payments data through        Balance of payments data for
   (U.S. international               2009:Q3. NIPA estimates; data from      2009:Q4.
   transactions)                     bank Reports of Condition and from
   (tables F.107 and L.107)          Treasury International Capital System
                                     through 2009:Q4.


9. Monetary authority                All data through 2009:Q4.               None.
   (tables F.108 and L.108)


10. Commercial banking               All data through 2009:Q4 for            Data since 2008 for branches of
   (tables F.109 through F.113       U.S.-chartered commercial banks,        domestic commercial banks
   and tables L.109 through          foreign banking offices in the U.S.,    located in U.S.-affiliated areas.
   L.113)                            bank holding companies, and
                                     commercial banks in U.S.-affiliated
                                     areas.

11. Savings institutions             All data through 2009:Q4.               None.
   (tables F.114 and L.114)

12. Credit unions                    All data through 2009:Q4.               None.
   (tables F.115 and L.115)

13. Property-casualty insurance      All data through 2009:Q3. Preliminary   Final data for 2009:Q4.
    companies                        data for 2009:Q4.
    (tables F.116 and L.116)

14. Life insurance companies         All data through 2009:Q3. Preliminary   Final data for 2009:Q4.
   (tables F.117 and L.117)          data for 2009:Q4.

15. Private pension funds            Quarterly data through 2009:Q3;         Form 5500 data since 2006.
   (tables F.118 and L.118)          Internal Revenue Service/Department     Quarterly data since 2009:Q3.
                                     of Labor/Pension Benefit Guaranty
                                     Corporation Form 5500 data through
                                     2006.

16. State and local government       Detailed data through 2007:Q2 from      Detailed data since 2007:Q2 and
   employee retirement funds         the Census Bureau; sample data          sample data for 2009:Q4.
   (tables F.119 and L.119)          through 2009:Q3 from the Census
                                     Bureau.

17. Federal government retirement    Data from the Monthly Treasury          None.
   funds                             Statement of Receipts and Outlays, the
   (tables F.120 and L.120)          Thrift Savings Plan, and the National
                                     Railroad Retirement Investment Trust
                                     through 2009:Q4.

18. Money market mutual              All data through 2009:Q4.               None.
   funds
    (tables F.121 and L.121)

19. Mutual funds                     All data through 2009:Q4.               None.
    (tables F.122 and L.122)


20. Closed-end funds                 All data through 2009:Q4.               None.
    (tables F.123 and L.123)

21. Exchange-traded funds            All data through 2009:Q4.               None.
   (tables F.123 and L.123)

6


 22. Government-sponsored        Data for Fannie Mae, Freddie Mac,           Farmer Mac for 2009:Q4.
    enterprises                  FHLBs, FICO, FCS, and REFCORP
     (tables F.124 and L.124)    through 2009:Q4.

 23. Agency- and GSE-backed      Data for Fannie Mae, Freddie Mac, and       None.
    mortgage pools               Ginnie Mae through 2009:Q4.
    (tables F.125 and L.125)

 24. Issuers of asset-backed     All data for private mortgage pools,        None.
    securities (ABSs)            consumer credit, business loans,
    (tables F.126 and L.126)     student loans, consumer leases, and
                                 trade credit securitization through
                                 2009:Q4.

 25. Finance companies           All data through 2009:Q4.                   None.
    (tables F.127 and L.127)

 26. Real estate investment      Data from SNL Financial through             None.
    trusts (REITs)               2009:Q4.
    (tables F.128 and L.128)

                                                                             None.
 27. Security brokers and        Data for firms filing FOCUS and
    dealers                      FOGS reports through 2009:Q4.
    (tables F.129 and L.129)

 28. Funding corporations        Estimates for this sector are largely residuals and are derived from data for
    (tables F.130 and L.130)     other sectors.

