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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

January 2010 (1.2 MB PDF)

Overview

Recent Developments

  • Continued improvements in financial market conditions have been accompanied by further declines in the amount of credit extended through many of the Federal Reserve's liquidity programs.
  • On January 12, 2010, the Federal Reserve Board announced preliminary unaudited results indicating that the Reserve Banks provided for payments of approximately $46.1 billion of their estimated 2009 net income of $52.1 billion to the U.S. Treasury. These payments represent an increase of $14.4 billion over the payments made in 2008, primarily due to increased earnings on securities holdings during 2009. The Reserve Banks' securities holdings and other assets expanded significantly during 2009 as a result of the Federal Reserve's response to the severe economic downturn.
  • On December 28, 2009, the Federal Reserve Board proposed amendments to Regulation D (Reserve Requirements of Depository Institutions) that would enable the establishment of a term deposit facility. Under the proposal, Federal Reserve Banks would offer interest-bearing term deposits to eligible institutions through an auction mechanism. Term deposits are one of several tools the Federal Reserve could employ to drain reserves in order to support the effective implementation of monetary policy. This proposal is one component of a process of prudent planning on the part of the Federal Reserve and has no implications for monetary policy decisions in the near term.
  • The Federal Reserve Bank of New York (FRBNY) on January 11, 2010, published a revised policy regarding the administration of its relationships with primary dealers intended to provide greater transparency about the significant business standards expected of primary dealers and to offer clearer guidance on the process to become a primary dealer. Substantive changes from the previous policy include: a more structured presentation of the business standards expected of a primary dealer; a more formal application process for prospective primary dealers; an increase in the minimum net capital requirement, from $50 million to $150 million; a seasoning requirement of one year of relevant operations before a prospective dealer may submit an application; and a clear notice of actions the FRBNY may take against a noncompliant primary dealer.
  • On December 23, 2009, the Treasury, the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) agreed to terminate the January 15, 2009, Master Agreement with Citigroup under which the government parties had agreed to provide certain loss protections and liquidity supports to Citigroup with respect to a designated pool of $301 billion of assets. In consideration for terminating the Master Agreement, the FRBNY received a $50 million termination fee from Citigroup.
  • The Treasury reduced balances held in the Supplementary Financing Account at the Federal Reserve from $15 billion to $5 billion in order to preserve its flexibility in the conduct of debt-management policy.

Table 1. Assets, Liabilities, and Capital of the Federal Reserve System
Billions of dollars

Item Current
December 30, 2009 		Change from
November 25, 2009 		Change from
December 31, 2008
Total assets 2,238 28 -4
Selected assets
   Securities held outright 1,845 61 1,349
       U.S. Treasury securities1 777 +* 301
       Federal agency debt securities1 160 5 140
       Mortgage-backed securities2 908 56 908
       Memo: Term Securities Lending Facility3 0 0 -172
       Memo: Overnight securities lending3 15 8 6
       Memo: Net commitments to purchase mortgage-backed
          securities4 		155 9 155
   Lending to depository and other financial institutions 96 -25 -509
       Primary, secondary, and seasonal credit 20 +* -74
       Term auction credit 76 -25 -374
       Primary dealer and other broker-dealer credit 0 0 -37
       Asset-Backed Commercial Paper Money Market
          Mutual Fund Liquidity Facility 		0 0 -24
   Central bank liquidity swaps5 10 -16 -543
   Lending through other credit facilities 62 2 -272
       Net portfolio holdings of Commercial Paper Funding
          Facility LLC6 		14 -1 -320
       Term Asset-Backed Securities Loan Facility, net 48 3 48
   Support for specific institutions 87 -23 -26
       Credit extended to American International Group, Inc.,
          net7 		22 -23 -17
       Net portfolio holdings of Maiden Lane8 27 +* -*
       Net portfolio holdings of Maiden Lane II LLC8 16 -* -4
       Net portfolio holdings of Maiden Lane III LLC8 23 -* -4
       Net portfolio holdings of TALF LLC9 * +* +*
       Preferred interests in AIA Aurora LLC and ALICO
          Holdings LLC10 		25 25 25
Total liabilities 2,185 28 -14
Selected liabilities
   Federal Reserve notes in circulation 890 7 37
   Deposits of depository institutions 1,025 -143 165
   U.S. Treasury, general account 150 137 44
   U.S. Treasury, supplementary financing account 5 -10 -254
   Other deposits 27 25 6
Total capital 52 -1 10
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. 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 Term Securities Lending Facility 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 values 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
9. As of December 30, 2009, TALF LLC had purchased no assets from the FRBNY. Return to table
10. Book value. 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