                                                                     For use at 12:00 p.m., eastern time
                                                                                              Thursday
                                                                                         June 11, 2009




FEDERAL RESERVE statistical release


Z.1




Flow of Funds Accounts
of the United States

Flows and Outstandings
First Quarter 2009




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




                                              First Quarter 2009

         Debt of the domestic nonfinancial sectors is                    State and local government debt increased at
estimated to have expanded at a seasonally adjusted            an annual rate of 5 percent last quarter, following a
annual rate of 4 percent in the first quarter of 2009,         small decline during the previous quarter.       Federal
about 2 percentage points less than in the previous            government debt growth slowed to 23 percent in the
quarter.   The deceleration was concentrated in the            first quarter, following two quarters of growth rates of
business and federal government sectors.                       nearly 40 percent.

         Household debt contracted for the second                        At the end of the first quarter of 2009, the
consecutive quarter, although at a slower pace than in         level of domestic nonfinancial debt outstanding was
the fourth quarter of 2008. In the first quarter, home         $33.9 trillion; household debt was $13.8 trillion,
mortgage debt growth was about zero, while consumer            nonfinancial business debt was $11.2 trillion, and total
credit contracted at an annual rate of 3 percent,             government debt was $9.0 trillion.
similar to the rate in the fourth quarter.
                                                                         Household net worth--the difference between
         Nonfinancial     business  debt  decreased           the value of assets and liabilities--was an estimated
percent at an annual rate in the first quarter, its lowest     $50.4 trillion at the end of the first quarter of 2009,
growth rate since early 1993.       The slowdown was           $1.3 trillion dollars less than at the end of 2008.
concentrated    in   commercial     paper,  loans,      and
commercial mortgage borrowing.



Percent Change of Domestic Nonfinancial Debt
                                                       P




Quarterly data are seasonally adjusted annual rates
                                                                                   State and
                            Total           Households         Business                                   Federal
                                                                                  local govts.
 1999                         6.4                 8.4           10.8                  3.3                   -1.9
 2000                         5.0                 9.1            9.3                  1.4                   -8.0
 2001                         6.3                 9.6            5.8                  8.8                   -0.2
 2002                         7.3                10.8            2.6                11.1                     7.6
 2003                         8.1                11.6            2.5                  8.3                  10.9

 2004                         8.9                11.1            6.2                  7.4                    9.0
 2005                         9.5                11.0            8.7                10.2                     7.0
 2006                         9.0                10.1           10.5                  8.2                    3.9
 2007                         8.7                 6.6           13.5                  9.3                    4.9
 2008                         5.9                 0.4            5.1                  1.8                  24.2

 2008:Q1                      5.4                 3.0            7.5                  3.5                    8.1
       Q2                     3.2                 0.4            6.1                  0.9                    5.9
       Q3                     8.3                 0.1            5.0                  3.2                  39.2
       Q4                     6.2                 -2.0           1.5                 -0.4                  37.0

 2009:Q1                      4.1                 -1.1          -0.3                  4.9                  22.6
Note. Changes shown are on an end-of-period basis.

                                              Table of Contents



Title                                                                            Table     Page



Flow of Funds Accounts, First Quarter 2009                                                  1

Availability of Data for Latest Quarter                                                     3

Debt Growth by Sector                                                            D.1        6

Borrowing by Sector                                                              D.2        7

Debt Outstanding by Sector                                                       D.3        8




                                                                    Flows            Levels
Title                                                           Table    Page    Table     Page




Summaries

Total Net Borrowing and Lending in Credit Markets               F.1        9     L.1        58

Credit Market Borrowing by Nonfinancial Sectors                 F.2       10     L.2        59

Credit Market Borrowing by Financial Sectors                    F.3       10     L.3        59

Credit Market Borrowing, All Sectors, by Instrument             F.4       11     L.4        60

Total Liabilities and Its Relation to Total Financial Assets    F.5       11     L.5        60

Distribution of Gross Domestic Product                          F.6       12

Distribution of National Income                                 F.7       13

Saving and Investment                                           F.8       14

Net Capital Transfers                                           F.9       14

Derivation of Measures of Personal Saving                       F.10      15     L.10       61

                                                            Flows            Levels

Title                                                   Table    Page    Table     Page


Sectors

Households and Nonprofit Organizations                  F.100     16     L.100      62

Nonfinancial Business                                   F.101     17     L.101      63

         Nonfarm Nonfinancial Corporate Business        F.102     18     L.102      64

         Nonfarm Noncorporate Business                  F.103     19     L.103      65

         Farm Business                                  F.104     19     L.104      65

State and Local Governments                             F.105     20     L.105      66

Federal Government                                      F.106     21     L.106      66

Rest of the World                                       F.107     22     L.107      67

Monetary Authority                                      F.108     23     L.108      68

Commercial Banking                                      F.109     24     L.109      69

         U.S.-Chartered Commercial Banks                F.110     25     L.110      70

         Foreign Banking Offices in U.S.                F.111     26     L.111      71

         Bank Holding Companies                         F.112     27     L.112      72

         Banks in U.S.-Affiliated Areas                 F.113     27     L.113      72

Savings Institutions                                    F.114     28     L.114      73

Credit Unions                                           F.115     29     L.115      74

Property-Casualty Insurance Companies                   F.116     29     L.116      74

Life Insurance Companies                                F.117     30     L.117      75

Private Pension Funds                                   F.118     30     L.118      75

State and Local Government Employee Retirement Funds    F.119     31     L.119      76

Federal Government Retirement Funds                     F.120     31     L.120      76

Money Market Mutual Funds                               F.121     32     L.121      77

Mutual Funds                                            F.122     32     L.122      77

                                                        Flows            Levels

Title                                               Table    Page    Table     Page



Closed-End and Exchange-Traded Funds                F.123     32     L.123      77

Government-Sponsored Enterprises                    F.124     33     L.124      78

Agency- and GSE-backed Mortgage Pools               F.125     33     L.125      78

Issuers of Asset-Backed Securities                  F.126     34     L.126      79

Finance Companies                                   F.127     34     L.127      79

Real Estate Investment Trusts                       F.128     35     L.128      80

Security Brokers and Dealers                        F.129     36     L.129      81

Funding Corporations                                F.130     36     L.130      81




Instruments

Gold and Official Foreign Exchange Holdings         F.200     37     L.200      82

SDR Certificates and Treasury Currency              F.201     37     L.201      82

U.S. Deposits in Foreign Countries                  F.202     37     L.202      82

Net Interbank Transactions                          F.203     38     L.203      83

Checkable Deposits and Currency                     F.204     39     L.204      84

Time and Savings Deposits                           F.205     40     L.205      85

Money Market Mutual Fund Shares                     F.206     40     L.206      85

Federal Funds and Security Repurchase Agreements    F.207     41     L.207      86

Open Market Paper                                   F.208     41     L.208      86

Treasury Securities                                 F.209     42     L.209      87

                                                                     Flows             Levels

Title                                                           Table     Page    Table     Page



Agency- and GSE-backed Securities                               F.210     43      L.210      88

Municipal Securities and Loans                                  F.211     44      L.211      89

Corporate and Foreign Bonds                                     F.212     44      L.212      89

Corporate Equities                                              F.213     45      L.213      90

Mutual Fund Shares                                              F.214     45      L.214      90

Bank Loans Not Elsewhere Classified                             F.215     46      L.215      91

Other Loans and Advances                                        F.216     47      L.216      92

Total Mortgages                                                 F.217     48      L.217      93

         Home Mortgages                                         F.218     49      L.218      94

         Multifamily Residential Mortgages                      F.219     49      L.219      94

         Commercial Mortgages                                   F.220     50      L.220      95

         Farm Mortgages                                         F.221     50      L.221      95

Consumer Credit                                                 F.222     51      L.222      96

Trade Credit                                                    F.223     51      L.223      96

Security Credit                                                 F.224     51      L.224      96

Life Insurance and Pension Fund Reserves                        F.225     52      L.225      97

Taxes Payable by Businesses                                     F.226     52      L.226      97

Proprietors' Equity in Noncorporate Business                    F.227     52      L.227      97

Total Miscellaneous Financial Claims                            F.228     53      L.228      98

         Identified Miscellaneous Financial Claims - Part I     F.229     54      L.229      99

         Identified Miscellaneous Financial Claims - Part II    F.230     55      L.230     100

         Unidentified Miscellaneous Financial Claims            F.231     56      L.231     101

Sector Discrepancies                                            F.11      57

Instrument Discrepancies                                        F.12      57

                                                                    Balance        Reconciliation
                                                                     Sheet
Title                                                            Table     Page    Table     Page



Balance Sheet and Reconciliation Tables

Households and Nonprofit Organizations                           B.100    102      R.100     105

Nonfinancial Corporate Business                                  B.102    103      R.102     106

Nonfarm Noncorporate Business                                    B.103    104      R.103     107




                                                                     Flows             Levels
Title                                                            Table     Page    Table     Page



Supplementary Tables

Nonprofit Organizations                                          F.100.a  108      L.100.a   109

Consolidated Statement for Federal, State, and Local Governments F.106.c  110      L.106.c   111

Private Pension Funds: Defined Benefit Plans                     F.118.b  112      L.118.b   113

Private Pension Funds: Defined Contribution Plans                F.118.c  112      L.118.c   113

Individual Retirement Accounts (IRAs)                            F.225.i  112      L.225.i   113

Flow of Funds Matrix for 2008                                             114                115

Balance Sheet of Households and Nonprofit Organizations
 with Equity Detail                                                                B.100.e   116

                                                                                                                       1




                        Flow of Funds Accounts, First Quarter 2009

         This publication presents the flow of funds        category, security RPs, and an additional liability
accounts for 2009:Q1.                                       category,   other      loans  and       advances,    to  reflect
                                                            transactions between the federal government and the
Data revisions and other changes. The statistics in         Term Asset-Backed Securities Loan Facility (TALF)
the attached tables reflect the use of new or revised       LLC.
source data. Most significant revisions appear in recent
quarters; however, new source information resulted in       9.    Detail for foreign direct investment (tables F.229
changes to data for earlier periods.                        and L.229) has been revised from 1992:Q4 forward to
                                                            reflect a reevaluation of the detail by sector.
1.    Assets of the nonfarm nonfinancial corporate
business sector (tables F.102 and L.102) have been          10.   The balance sheet of households and nonprofit
revised from 2007:Q1 onward to reflect advance data         organizations with equity detail (table B.100.e) has
from the Internal Revenue Service (IRS) Statistics of       been expanded to show quarterly data.
Income (SOI) for 2007.
                                                            Explanatory notes for tables D.1, D.2, and D.3.
2.    The monetary authority sector (tables F.108 and       Domestic debt comprises credit market funds borrowed
L.108) has been expanded to show new asset detail for       by   U.S. entities from      both       domestic and foreign
bank loans n.e.c. related to the creation of the Term       sources,   while      foreign  debt      represents    amounts
Asset-Backed Securities Loan Facility (TALF).               borrowed by foreign financial and nonfinancial entities
                                                            in U.S. markets only.       Financial sectors consist of
3.    The bank holding company sector (tables F.112         government-sponsored enterprises, agency- and GSE-
and L.112) has been revised to include a number of          backed    mortgage        pools,       and private     financial
large financial companies  including Goldman Sachs,        institutions.       Credit market debt consists of debt
Morgan Stanley, CIT Group, American Express,                securities, mortgages, bank loans, commercial paper,
GMAC, Discover Financial Services, and IB Finance          consumer credit, U.S. government loans, and other
that became bank holding companies in 2008:Q4 and           loans and advances; it excludes trade debt, loans for the
2009:Q1. Balance sheet data for these firms became          purpose of carrying securities, and funds raised from
available in 2009:Q1.                                       equity sources.


4.    The credit unions sector (tables F.115 and L.115)               Growth rates in table D.1 are calculated by
was modified to include an additional asset category,       dividing seasonally adjusted flows from table D.2 by
reserves at the Federal Reserve.                            seasonally adjusted levels at the end of the previous
                                                            period from table D.3. Seasonally adjusted levels in
5.    The private pension fund sector (tables F.118,        flow of funds statistics are derived by carrying forward
L.118, F.118.c, and L.118.c) has been revised from          year-end levels by seasonally adjusted flows. Growth
2002:Q4 forward to reflect improved methodology in          rates calculated from changes in unadjusted levels
using College Retirement Equities Fund (CREF) data.         printed in table L.2 can differ from those in table D.1.


6.    The    state and  local   government    employee      Relation of Flows to Outstandings.                 Estimates of
retirement funds sector (tables F.119 and L.119) was        financial assets and liabilities outstanding are linked to
revised from 2006:Q3 forward to reflect new data from       data on flows.        However, figures on outstandings
the Census Bureau.                                          contain discontinuities or breaks in series that could
                                                            affect analysis of particular relationships over time.
7.    The finance companies sector (table F.127 and         Specifically, outstanding in the flow of funds accounts
L.127) was modified to include other loans and              are related to the flows in the following way:
advances as an additional liability category, reflecting
loans made to Chrysler Financial by the federal             Outstanding = Outstanding
                                                                         t                    t-1+ Flow + Discontinuity
                                                                                                           t              t
                                                                              B
                                                                                                  B
                                                                                                            B
                                                                                                                             B
                                                                            B
                                                                                             B
                                                                                                          B
                                                                                                                           B




government under the Troubled Assets Relief Program         where "t" is the time period.

(TARP).
                                                                      Discontinuities     result      from     changes   in

8.    The funding corporation sector (tables F.130 and      valuation, breaks in source data, and changes in

L.130) was modified to include an additional asset          definitions.       For most  series,      the     value of  the

 2



discontinuity    is zero     for       nearly all time periods.      Availability of Data.    Flow   of   funds statistics are
However, in a few instances, the discontinuity is                    updated about ten weeks following the end of a quarter.
nonzero for almost all time periods, or is quite large in a          This publication -- the Z.1 release -- is available from
particular quarter, such as a period when there is a                 the Board's Publications Services. Flow of funds data
sharp increase or decrease in equity prices or a major               are also available electronically through the Internet at
break in source data.                                                the following location:

          The discontinuities in a series can distort                www.federalreserve.gov/releases/Z1
estimated rates of growth in assets and liabilities
between     periods.       In order        to minimize      these             The Internet site also provides quarterly data
distortions, percentage changes in assets and liabilities            beginning in 1952, organized in compressed files that
in flow of funds releases should be calculated as:                   correspond to the tables published in this release.
                                                                     There are files for quarterly data for seasonally adjusted
Percentage change = (Flow / Outstanding                              flows, unadjusted flows, outstandings, balance sheets,
                     t               t               t-1
                                                       ) * 100
                       B
                         B
                                    B
                                      B
                                                     B
                                                          B



                                                                     and debt (tables D.1, D.2, and D.3). This data is also
Preliminary Estimates.        Figures shown for the most             available as a customizable download dataset through
recent quarter in these tables are based on preliminary              the Data Download Program (DDP) at the following
and incomplete information.              A summary list of the       location:
principal sources of information available when the
latest quarter's data were compiled is provided in a table           www.federalreserve.gov/datadownload/Choose.aspx?rel=Z.1

following this introduction. The distinction between
"available" data and "missing" data is not between final                      A Guide to the Flow of Funds Accounts

and preliminary versions of data, but rather between                 is available. The 1,200-page Guide, published in two

those source estimates that are fully ready when the                 volumes in January 2000, explains in detail how the

latest quarterly publication is compiled and those that              U.S. financial accounts are prepared and the principles

are not yet completed.        However, the items that are            underlying the accounts. The Guide can be purchased

shown as available are, in general, also preliminary in              for $20.00 from the Board's Publications Services.

the sense that they are subject to revision by source                Publications Services accepts orders accompanied by

agencies.                                                            checks as well as credit card orders.


Margins of Uncertainty. Flow of funds statistics are                          The Internet site for this release at the location

subject to uncertainties resulting from measurement                  shown above contains a link to an order form for the

errors in source data, incompatibilities among data from             Guide that can be mailed or faxed to Publications

different sources, potential revisions in both financial             Services. In addition, the Internet site includes a link to

and nonfinancial series, and incomplete data in parts of             the Guide's descriptions of the tables in the flow of

the accounts. The size of these uncertainties cannot be              funds accounts.

quantified in precise statistical terms, but allowance for
them is explicitly made throughout the accounts by the               Subscription Information.         The Federal Reserve

inclusion of "discrepancies" for various sectors and                 Board charges for subscriptions to all statistical

instrument types.       A discrepancy for a sector is the            releases. Inquiries for releases should be directed to:

difference between its measured            sources of funds and
its measured uses of funds. For an instrument category,                         Publications Services, Stop 127

a discrepancy is the difference between measured funds                                 Board of Governors

borrowed     through       the financial      instrument     and                 of the Federal Reserve System

measured funds lent through that instrument. The size                      20th Street and Constitution Avenue, N.W.

of such discrepancies relative to the main asset or                                  Washington, DC 20551

liability components is one indication of the quality of                                 (202) 452-3244

source data,   especially     on       an  annual   basis.   For
quarterly data, differences in seasonal adjustment
procedures for financial and nonfinancial components
of the accounts sometimes result in discrepancies that
cancel in annual data.

                                                                                                                 3



                          Availability of Data for Latest Quarter



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




1. National income and              Preliminary estimates, seasonally           Unadjusted flows since 2007 for
   product accounts (NIPA)          adjusted, for 2009:Q1.                      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:Q1. 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 2008:Q4;            2007. QFR since 2008:Q4.
   (tables F.102 and L.102)         Internal Revenue Service Statistics of
                                    Income (IRS/SOI) advance data
                                    through 2007; securities offerings,
                                    mortgages, bank loans, commercial
                                    paper, and other loans through
                                    2009:Q1.

4. Nonfarm noncorporate             IRS/SOI data through 2006; bank and           Statistics of Income data since
   business                         finance company loans and mortgage            2006.
   (tables F.103 and L.103)         borrowing through 2009:Q1.

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           2007.
                                    equity in government-sponsored
                                    enterprises through 2009:Q1;
                                    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,       2006:Q2 and selected financial
                                   and nonmarketable U.S. government              asset detail since 2004:Q2.
                                   security issues through 2009:Q1; total
                                   financial assets through 2006: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:Q1.

4


 8. Rest of the world                Balance of payments data through        Balance of payments data for
    (U.S. international              2008:Q4. NIPA estimates; data from      2009:Q1.
    transactions)                    bank Reports of Condition and from
    (tables F.107 and L.107)         Treasury International Capital System
                                     through 2009:Q1.


 9. Monetary authority               All data through 2009:Q1.               None.
    (tables F.108 and L.108)


10. Commercial banking               All data through 2009:Q1 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:Q1.               None.
    (tables F.114 and L.114)

12. Credit unions                    All data through 2009:Q1.               None.
    (tables F.115 and L.115)

13. Property-casualty insurance      All data through 2008:Q4. Preliminary   Final data for 2009:Q1.
    companies                        data for 2009:Q1.
    (tables F.116 and L.116)

14. Life insurance companies         All data through 2008:Q4. Preliminary   Final data for 2009:Q1.
    (tables F.117 and L.117)         data for 2009:Q1.

15. Private pension funds            Quarterly data through 2009:Q1;         Form 5500 data since 2006.
    (tables F.118 and L.118)         Internal Revenue Service/Department
                                     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:Q1.
    (tables F.119 and L.119)         through 2008:Q4 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:Q1.

18. Money market mutual              All data through 2009:Q1.               None.
    funds
    (tables F.121 and L.121)

19. Mutual funds                     All data through 2009:Q1.               None.
    (tables F.122 and L.122)


20. Closed-end funds                 All data through 2009:Q1.               None.
    (tables F.123 and L.123)

21. Exchange-traded funds            All data through 2009:Q1.               None.
    (tables F.123 and L.123)

                                                                                                              5


22. Government-sponsored        Data for Fannie Mae, Freddie Mac,           None.
    enterprises                 FHLBs, FICO, Farmer Mac, FCS, and
    (tables F.124 and L.124)    REFCORP through 2009:Q1.

23. Agency- and GSE-backed      Data for Fannie Mae, Ginnie Mae, and        None.
    mortgage pools              Freddie Mac through 2009:Q1.
    (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:Q1.

25. Finance companies           All data through 2009:Q1.                   None.
    (tables F.127 and L.127)

26. Real estate investment      Data from SNL REIT DataSource               None.
    trusts (REITs)              through 2009:Q1.
    (tables F.128 and L.128)

                                                                            None.
27. Security brokers and        Data for firms filing FOCUS and
    dealers                     FOGS reports through 2009:Q1.
    (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.

