Monthly Report on Credit and Liquidity Programs
and the Balance Sheet
|Abbreviations||Overview||System Open Market Account|
The Overview section of this report highlights developments in the operations of the Federal Reserveís credit and liquidity programs and facilities since last monthís report, and presents data describing changes in the assets, liabilities, and total capital of the Federal Reserve System as of March 30, 2011.
Federal Reserve Begins Sales of Maiden Lane II Assets
- On March 30, 2011, the Federal Reserve announced that the Federal Reserve Bank of New York (FRBNY), through its investment manager, BlackRock Solutions, will dispose of the securities in the Maiden Lane II (ML II) portfolio individually and in segments through a competitive sales process over time as market conditions warrant. The first bid list was circulated on April 4, with bids due on April 6, 2011. As of April 14, 2011, three bid list auctions had been conducted and assets with a total current face amount of $2.5 billion had been sold. Additional information is available at www.newyorkfed.org/markets/maidenlane.html#maidenlane2.
Federal Reserve Releases Discount Window Data
- On March 21, 2011, the United States Supreme Court denied further review of decisions in two Freedom of Information Act suits brought by media companies for release of documents of the Board of Governors of the Federal Reserve System relating to discount window borrowers. As a result, on March 31, 2011, the Board released information that was the subject of the Courtís action, and also released similar information that is the subject of a related court proceeding. All of the information relates to borrowers at the discount window and the emergency lending facilities under Section 13(3) of the Federal Reserve Act; the information spans the period from August 8, 2007, to March 1, 2010. Additional information is available at www.federalreserve.gov/generalinfo/foia/servicecenter.cfm.
FRBNY Continues Small-Scale, Real-Value Reverse Repo Transactions
- On March 24, 2011, the FRBNY commenced another series of small-scale, real-value reverse repurchase transactions (reverse repos) using all eligible collateral types. Five operations, conducted from March 24 through April 1, 2011, had terms ranging from overnight to seven days. The first two operations, conducted on March 24 and 28, were open only to the expanded set of reverse repo counterparties announced on January 31, 2011. The last three operations, conducted on March 29, March 30, and April 1, were open to all eligible reverse repo counterparties. The FRBNY periodically conducts reverse repos to ensure operational readiness at the Federal Reserve, the major clearing banks, and the primary dealers; the transactions have no material impact on the availability of reserves or on market rates, and represent no change in the stance of monetary policy. The results of these operations are available on the FRBNYís website at www.newyorkfed.org/markets/omo/dmm/temp.cfm.
Federal Reserve Conducts Another Small-Scale, Real-Value Term Deposit Facility (TDF) Auction
- On April 4, 2011, the Federal Reserve conducted an auction of $5 billion of 28-day term deposits through the TDF. The awarded deposits settled on April 7, 2011, and will mature on May 5, 2011. Additional information about term deposits, auction results, and future small-value offerings is available through the TDF Resource Center at www.frbservices.org/centralbank/term_deposit_facility.html. The ongoing small-value TDF offerings are a matter of prudent planning and have no implications for the near-term conduct of monetary policy.
Federal Reserve System Selected Assets, Liabilities, and Total Capital
Table 1 reports selected assets and liabilities and total capital of the Federal Reserve System and presents the change in these components over the past month and since this time last year.
Figure 1 displays the levels of selected Federal Reserve assets and liabilities, securities holdings, and credit extended through liquidity facilities since 2007.
Table 1. Assets, liabilities, and capital of the Federal Reserve System
Billions of dollars
March 30, 2011
February 23, 2011
March 31, 2010
|Securities held outright||2,403||+87||+389|
|U.S. Treasury securities1||1,333||+120||+556|
|Federal agency debt securities1||132||-12||-37|
|Memo: Overnight securities lending3||25||+11||+11|
|Memo: Net commitments to purchase mortgage-backed securities4||0||0||-104|
|Lending to depository institutions5||*||
|Central bank liquidity swaps6||0||-*||0|
|Lending through other credit facilities||19||-2||-36|
|Net portfolio holdings of Commercial Paper Funding Facility LLC||0||0||-8|
|Term Asset-Backed Securities Loan Facility7||19||-2||-28|
|Net portfolio holdings of TALF LLC8||1||+*||+1|
|Support for specific institutions||64||-1||-1|
|Net portfolio holdings of Maiden Lane LLC9||26||-*||-1|
|Net portfolio holdings of Maiden Lane II LLC9||16||-*||+1|
|Net portfolio holdings of Maiden Lane III LLC9||23||+*||+1|
|Federal Reserve notes in circulation||964||+8||+70|
|Term deposits of depository institutions||0||-5||0|
|Other deposits of depository institutions||1,458||+165||+404|
|U.S. Treasury, general account||59||+36||-33|
|U.S. Treasury, supplementary financing account||5||-120||-120|
* 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 March 30, 2011, TALF LLC had purchased no assets from the FRBNY. Return to table
9.Fair value, reflecting values as of December 31, 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