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Monthly Report on Credit and Liquidity Programs
and the Balance Sheet
November 2010 (1.5 MB PDF)
| Purpose | Overview | System Open Market Account |
Overview
Recent Developments
- On November 3, 2010, the Federal Open Market Committee (FOMC) announced that it will maintain its existing policy of reinvesting principal payments from its securities holdings in the System Open Market Account (SOMA) and intends to purchase a further $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month. The FOMC will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability.
- In conjunction with the FOMC's November 3, 2010, announcement, the Federal Reserve Bank of New York (FRBNY) announced its plan to execute the FOMC's existing reinvestment plan along with the additional Treasury purchases through the second quarter of 2011. Based on current estimates, the FRBNY expects to reinvest $250 billion to $300 billion in principal payments from agency debt and mortgage-backed securities, though the realized amount of reinvestment will depend on the actual principal payments from those securities. Combined with the announced additional $600 billion of purchases, the FRBNY anticipates purchasing a total of $850 billion to $900 billion of longer-term Treasury securities over this period.
- Pending the closing of American International Group, Inc.'s (AIG's) recapitalization plan, which was announced on September 30, 2010, the cash proceeds from certain AIG asset dispositions will be held by the FRBNY as agent. The FRBNY began to hold as agent funds from the cash proceeds from the initial public offering of AIA on October 29, 2010, and from the cash proceeds from the sale of ALICO on November 1, 2010. As of November 17, the FRBNY held $26.8 billion in this account. The funds held by the FRBNY as agent from the disposition of the AIG assets are reported in table 1 of the H.4.1 statistical release and are included in "Other liabilities and accrued dividends" in tables 9 and 10 of the H.4.1 statistical release. Upon closing of the recapitalization plan, the cash proceeds from these asset dispositions will be used first to repay in full the credit extended to AIG by the FRBNY under the revolving credit facility and then to redeem a portion of the FRBNY's preferred interests in the AIA and ALICO special purpose vehicles (SPVs).
- As announced on October 12, 2010, the FRBNY conducted a second series of small-scale, real-value, triparty reverse repurchase transactions (reverse repos) using all eligible collateral types. This set of three operations, which was open to all eligible reverse repo counterparties, commenced on October 18 and was completed on October 22. The results of these operations are available on the FRBNY website at www.newyorkfed.org/markets/omo/dmm/temp.cfm. The outstanding amounts of reverse repos are reported weekly in tables 1, 2, 9, and 10 of the H.4.1 statistical release.
Table 1. Assets, Liabilities, and Capital of the Federal Reserve System
Billions of dollars
| Item |
Current October 27, 2010 |
Change from September 29, 2010 |
Change from October 28, 2009 |
|---|---|---|---|
| Total assets | 2,299 | -3 | 134 |
| Selected assets | |||
| Securities held outright | 2,039 | -5 | 349 |
| U.S. Treasury securities1 | 838 | 26 | 63 |
| Federal agency debt securities1 | 150 | -4 | 8 |
| Mortgage-backed securities2 | 1,051 | -28 | 277 |
| Memo: Overnight securities lending3 | 5 | -3 | -1 |
| Memo: Net commitments to purchase mortgage-backed securities4 | 0 | 0 | -169 |
| Lending to depository institutions5 | * | -* | -23 |
| Central bank liquidity swaps6 | * | -* | -33 |
| Lending through other credit facilities | 28 | -3 | -32 |
| Net portfolio holdings of Commercial Paper Funding Facility LLC | 0 | 0 | -19 |
| Term Asset-Backed Securities Loan Facility7 | 28 | -3 | -13 |
| Net portfolio holdings of TALF LLC8 | 1 | +* | 1 |
| Support for specific institutions | 114 | 2 | 4 |
| Credit extended to American International Group, Inc., net9 | 19 | +* | -26 |
| Net portfolio holdings of Maiden Lane LLC10 | 28 | -* | 2 |
| Net portfolio holdings of Maiden Lane II LLC10 | 16 | +* | +* |
| Net portfolio holdings of Maiden Lane III LLC10 | 24 | 1 | 1 |
| Preferred interests in AIA Aurora LLC and ALICO Holdings LLC7 | 26 | +* | 26 |
| Total liabilities | 2,241 | -4 | 129 |
| Selected liabilities | |||
| Federal Reserve notes in circulation | 922 | 8 | 47 |
| Term deposits of depository institutions | 5 | 3 | 5 |
| Other deposits of depository institutions | 1,011 | 27 | -72 |
| U.S. Treasury, general account | 27 | -31 | -4 |
| U.S. Treasury, supplementary financing account | 200 | 0 | 170 |
| Other deposits | 1 | 1 | -10 |
| Total capital | 57 | +* | 4 |
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 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 October 27, 2010, TALF LLC had purchased no assets from the FRBNY. Return to table
9. Excludes credit extended to Maiden Lane II and III LLCs. Return to table
10. Fair value, reflecting values as of September 30, 2010. 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
* 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 October 27, 2010, TALF LLC had purchased no assets from the FRBNY. Return to table
9. Excludes credit extended to Maiden Lane II and III LLCs. Return to table
10. Fair value, reflecting values as of September 30, 2010. 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
Last update:
August 2, 2013
