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Monthly Report on Credit and Liquidity Programs
and the Balance Sheet
June 2009 (927 KB PDF)
| Purpose | Overview | SOMA Portfolio |
Overview
Recent Developments
- Improvements in financial market conditions over recent weeks, particularly following release of the results of the Supervisory Capital Assessment Program, have been accompanied by a drop in credit extended through many of the Federal Reserve's liquidity programs.
- Declines in borrowing under the Primary Dealer Credit Facility (PDCF) and Term Securities Lending Facility (TSLF) have been particularly notable. Market reports have suggested that market sources of funding are now less expensive in many cases than funding obtained through these facilities.
- The Federal Reserve has continued to purchase large volumes of Treasury and agency securities and agency-backed mortgage-backed securities (MBS) under its large-scale asset purchase programs.
- In recent weeks, the level of reserve balances has remained quite high; the drain in reserves attributable to a drop in use of various lending programs has been roughly offset by increases in reserves associated with asset purchases.
- Recent quarterly revaluations resulted in markdowns in the aggregate fair value of assets held by Maiden Lane LLC, Maiden Lane II LLC, and Maiden Lane III LLC (see "Lending in Support of Specific Institutions").
- The Federal Reserve released audited financial statements for 2008 that received unqualified audit opinions from independent registered public accountants for all Reserve Banks and limited liability company (LLC) entities (see "Financial Tables: Federal Reserve System").
- Investor interest in financing through the Term Asset-Backed Securities Loan Facility (TALF) has increased over recent weeks. The Federal Reserve has announced the addition of new asset classes that are eligible for TALF financing and has extended the maximum term of loans available for certain classes of asset-backed securities (ABS).
- Developments concerning American International Group, Inc. (AIG) included the firm's announcement of plans to separate its American International Underwriters (AIU) Holdings group in a special-purpose vehicle, a modification of its credit arrangement with the Federal Reserve, and the resignation of its chief executive officer pending the appointment of a successor.
Table 1. Selected Assets, Liabilities, and Capital Accounts of the Federal Reserve System
($ billions)
| Item |
Current May 27, 2009 |
Change from Apr 29, 2009 |
Change from May 28, 2008 |
|---|---|---|---|
| Total assets | 2,082 | +13 | +1,176 |
| Selected assets: | |||
| Securities held outright | 1,107 | +124 | +616 |
| U.S. Treasury securities1 | 600 | +51 | +109 |
| Agency securities1 | 80 | +12 | +80 |
| MBS2 | 428 | +62 | +428 |
| Memo: TSLF | 27 | -6 | -79 |
| Lending to depository and other financial institutions | 437 | -16 | +258 |
| Primary, secondary, and seasonal credit | 38 | -7 | +19 |
| TAF | 373 | -31 | +223 |
| PDCF | 0 | -1 | -10 |
| AMLF | 26 | +22 | +26 |
| Foreign central bank liquidity swaps3 | 182 | -68 | +120 |
| Lending through other credit facilities | 165 | -23 | +165 |
| CPFF4 | 149 | -33 | +149 |
| TALF | 15 | +9 | +15 |
| Support for specific institutions | 106 | -12 | +106 |
| Credit extended to AIG5 | 44 | -1 | +44 |
| Net portfolio holdings of Maiden Lane I, II, and III6 | 62 | -10 | +62 |
| Total liabilities | 2,037 | +15 | +1,171 |
| Selected liabilities: | |||
| Federal reserve notes in circulation | 870 | +7 | +82 |
| Deposits of depository institutions | 877 | +64 | +850 |
| U.S. Treasury, general account | 11 | -52 | +7 |
| U.S. Treasury, supplementary financing account | 200 | 0 | +200 |
| Other deposits | 0 | -1 | 0 |
| Total capital | 45 | -2 | +4 |
Note: Unaudited. Securities loans under the TSLF are off-balance-sheet transactions. TSLF loans are shown here as a memo item to indicate the portion of securities held outright that have been lent through this program. Components may not add because of rounding.
1. Face value. Return to table
2. Current face value which is the remaining principal balance of the underlying mortgages. Return to table
3. 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
4. Book value of net portfolio holdings, includes commercial paper holdings, net, and about $4 billion of other investments. Return to table
5. Excludes credit extended to Maiden Lane II and III. Return to table
6. Fair value. 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
1. Face value. Return to table
2. Current face value which is the remaining principal balance of the underlying mortgages. Return to table
3. 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
4. Book value of net portfolio holdings, includes commercial paper holdings, net, and about $4 billion of other investments. Return to table
5. Excludes credit extended to Maiden Lane II and III. Return to table
6. Fair value. 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
