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Board of Governors of the Federal Reserve System
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Board of Governors of the Federal Reserve System

Monthly Report on Credit and Liquidity Programs
and the Balance Sheet

November 2009 (1.7 MB PDF)

Overview

Recent Developments

  • Continued improvements in financial market conditions have been accompanied by further declines in credit extended through many of the Federal Reserve's liquidity programs.
  • On November 4, 2009, the Federal Open Market Committee (FOMC) announced that the Federal Reserve would purchase about $175 billion of agency debt, somewhat less than the previously announced maximum of $200 billion. This reduction is consistent with the recent path of purchases and reflects the limited availability of agency debt.
  • Net income, including changes in valuation, for the Maiden Lane, Maiden Lane II, and Maiden Lane III LLCs was $329 million, $1,758 million and $3,730 million, respectively, for the quarter ended September 30, 2009.
  • Cash flows generated from the Maiden Lane II and Maiden Lane III portfolios are used to pay down the loans from the Federal Reserve Bank of New York (FRBNY). In the third quarter of 2009, those repayments totaled about $3.8 billion.
  • The Federal Reserve remits earnings to the U.S. Treasury as interest on Federal Reserve notes. During the first three quarters of 2009, these distributions to the Treasury totaled $27 billion.
  • As announced by the Treasury in September, the balance of the Supplementary Financing Account at the Federal Reserve was reduced substantially over several weeks in order to preserve flexibility in the conduct of debt-management policy. As of October 28, 2009, the balance of this account was $30 billion, and by November 4, 2009, it reached the planned level of $15 billion.
  • On November 17, 2009, the Federal Reserve announced that, in light of the continued improvement in financial market conditions, the maximum maturity of primary credit loans at the discount window for depository institutions will be reduced to 28 days from 90 days effective January 14, 2010.
  • On October 30, 2009, the lending authorization for the Money Market Investor Funding Facility (MMIFF) expired. The MMIFF was established to provide liquidity to U.S. money market mutual funds and certain other money market investors, and thereby increase their ability to meet redemption requests. There were no extensions of credit under the MMIFF.
  • As required by Section 129 of the Emergency Economic Stabilization Act of 2008, the Federal Reserve must report to Congress on the status of its Section 13(3) credit facilities that have credit outstanding. The Federal Reserve now provides this information monthly as part of this report.

Table 1. Selected Assets, Liabilities, and Capital Accounts of the Federal Reserve System
($ billions)

Item Current
October 28, 2009 		Change from
September 30, 2009 		Change from
October 29, 2008
Total assets 2,165 +21 +194
Selected assets
   Securities held outright 1,690 +97 +1,200
       U.S. Treasury securities1 775 +6 +298
       Agency securities1 142 +11 +128
       Agency-guaranteed mortgage-backed securities2 774 +82 +774
       Memo: TSLF3 0 0 -197
       Memo: Overnight securities lending3 6 -7 -16
       Memo: Net commitments to purchase MBS4 169 -15 +169
   Lending to depository and other financial institutions 162 -45 -426
       Primary, secondary, and seasonal credit 23 -6 -88
       TAF 139 -39 -162
       PDCF 0 0 -79
       AMLF 0 -* -96
   Foreign central bank liquidity swaps5 33 -24 -466
   Lending through other credit facilities 60 -24 -85
       Net portfolio holdings of CPFF LLC6 19 -22 -126
       TALF 41 -2 +41
   Support for specific institutions 110 +10 -*
       Credit extended to AIG, net7 45 +6 -39
       Net portfolio holdings of Maiden Lane I, Maiden Lane II, and Maiden Lane III LLCs8 65 +3 +38
Total liabilities 2,112 +19 +181
Selected liabilities
   Federal Reserve notes in circulation 875 +2 +51
   Deposits of depository institutions 1,083 +235 +657
   U.S. Treasury, general account 31 -77 +12
   U.S. Treasury, supplementary financing account 30 -135 -529
   Other deposits 11 -5 +10
Total capital 53 +2 +13
Note: Unaudited. Components may not sum to totals because of rounding.
* Less than $500 million. Return to table
1. Face value. Return to table
2. 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 TSLF and 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 these programs. Return to table
4. Current face value. These generally settle within 180 days and include commitments associated with outright transactions as well as dollar rolls. Return to table
5. 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
6. Includes commercial paper holdings, net, and about $5 billion in other investments. Return to table
7. Excludes credit extended to Maiden Lane II and III LLCs. Return to table
8. Fair value, reflecting valuations as of September 30, 2009. 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 Reserve's Balance Sheet

Figure 1. Credit and Liquidity Programs and the Federal Reserve's Balance Sheet

Accessible version

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Last update: August 2, 2013