                                                                     For use at 12:00 p.m., eastern time
                                                                                              Thursday
                                                                                         June 10, 2010




FEDERAL RESERVE statistical release


Z.1




Flow of Funds Accounts
of the United States

Flows and Outstandings
First Quarter 2010




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




                                                 First Quarter 2010

         Debt of the domestic nonfinancial sectors is
estimated to have expanded at a seasonally adjusted                     State and local government debt expanded at
annual rate of 3 percent in the first quarter of 2010,       an annual rate of 4 percent in the first quarter, about
2 percentage points faster than in the previous quarter.     the same pace as in the previous quarter.         Federal
Private debt contracted again in the first quarter, while     government debt increased at an annual rate of 18
government debt continued to expand at a rapid rate.          percent in the first quarter, significantly faster than in
                                                              the previous quarter, but below the pace seen in 2009 as
         Household debt contracted at an annual rate of       a whole.
2 percent in the first quarter, the seventh consecutive
quarter of decline.    Home mortgage debt fell at an                    At the end of the first quarter of 2010, the
annual rate of 3 percent, a significantly faster decline     level of domestic nonfinancial debt outstanding was
than in the fourth quarter, while consumer credit             $35.0 trillion; household debt was $13.5 trillion,
contracted at an annual rate of 1 percent.                   nonfinancial business debt was $10.9 trillion, and total
                                                              government debt was $10.5 trillion.
         Nonfinancial business debt was flat in the first
quarter, after four consecutive quarters of contraction.                Household net worth--the difference between
Bank loans and commercial mortgages continued to              the value of assets and liabilities--was an estimated
decline, while corporate bonds and commercial paper           $54.6 trillion at the end of the first quarter, up $1.1
expanded.                                                     trillion from the end of the fourth quarter of 2009.


Growth of Domestic Nonfinancial Debt1
                                            P
                                                P




Percentage changes; quarterly data are seasonally adjusted annual rates
                                                                                 State and
                           Total             Households      Business                                    Federal
                                                                                local govts.
 2000                        5.0                   9.1          9.3                 1.4                   -8.0
 2001                        6.3                   9.6          5.7                 8.8                   -0.2
 2002                        7.4                  10.8          2.8                11.1                    7.6
 2003                        8.1                  11.8          2.3                 8.3                   10.9
 2004                        8.8                  11.0          6.2                 7.3                    9.0

 2005                        9.5                  11.1          8.7                10.2                    7.0
 2006                        9.0                  10.1         10.6                 8.3                    3.9
 2007                        8.7                   6.7         13.1                 9.5                    4.9
 2008                        6.0                   0.3          5.4                 2.1                   24.2
 2009                        3.1                  -1.7         -2.5                 4.8                   22.7

 2009:Q1                     3.8                  -1.2         -0.7                 4.7                   22.6
       Q2                    4.3                  -1.6         -2.9                 4.0                   28.2
       Q3                    2.7                  -2.5         -3.0                 5.6                   20.6
       Q4                    1.3                  -1.6         -3.5                 4.6                   12.6

 2010:Q1                     3.5                  -2.4          0.0                 4.3                   18.5
1. Changes shown are on an end-of-period basis.

                                              Table of Contents



Title                                                                            Table     Page



Flow of Funds Accounts, First Quarter 2010                                                  1

Availability of Data for Latest Quarter                                                     4

Debt Growth by Sector                                                            D.1        7

Borrowing by Sector                                                              D.2        8

Debt Outstanding by Sector                                                       D.3        9




                                                                    Flows            Levels
Title                                                           Table    Page    Table     Page




Summaries

Total Net Borrowing and Lending in Credit Markets               F.1       10     L.1        60

Credit Market Borrowing by Nonfinancial Sectors                 F.2       11     L.2        61

Credit Market Borrowing by Financial Sectors                    F.3       11     L.3        61

Credit Market Borrowing, All Sectors, by Instrument             F.4       12     L.4        62

Total Liabilities and Its Relation to Total Financial Assets    F.5       12     L.5        62

Distribution of Gross Domestic Product                          F.6       13

Distribution of National Income                                 F.7       14

Saving and Investment                                           F.8       15

Net Capital Transfers                                           F.9       16

Derivation of Measures of Personal Saving                       F.10      17     L.10       63

                                                            Flows            Levels

Title                                                   Table    Page    Table     Page


Sectors

Households and Nonprofit Organizations                  F.100     18     L.100      64

Nonfinancial Business                                   F.101     19     L.101      65

         Nonfarm Nonfinancial Corporate Business        F.102     20     L.102      66

         Nonfarm Noncorporate Business                  F.103     21     L.103      67

         Farm Business                                  F.104     21     L.104      67

State and Local Governments                             F.105     22     L.105      68

Federal Government                                      F.106     23     L.106      68

Rest of the World                                       F.107     24     L.107      69

Monetary Authority                                      F.108     25     L.108      70

Commercial Banking                                      F.109     26     L.109      71

         U.S.-Chartered Commercial Banks                F.110     27     L.110      72

         Foreign Banking Offices in U.S.                F.111     28     L.111      73

         Bank Holding Companies                         F.112     29     L.112      74

         Banks in U.S.-Affiliated Areas                 F.113     29     L.113      74

Savings Institutions                                    F.114     30     L.114      75

Credit Unions                                           F.115     31     L.115      76

Property-Casualty Insurance Companies                   F.116     31     L.116      76

Life Insurance Companies                                F.117     32     L.117      77

Private Pension Funds                                   F.118     32     L.118      77

State and Local Government Employee Retirement Funds    F.119     33     L.119      78

Federal Government Retirement Funds                     F.120     33     L.120      78

Money Market Mutual Funds                               F.121     34     L.121      79

Mutual Funds                                            F.122     34     L.122      79

                                                        Flows            Levels

Title                                               Table    Page    Table     Page



Closed-End and Exchange-Traded Funds                F.123     34     L.123      79

Government-Sponsored Enterprises                    F.124     35     L.124      80

Agency- and GSE-backed Mortgage Pools               F.125     35     L.125      80

Issuers of Asset-Backed Securities                  F.126     36     L.126      81

Finance Companies                                   F.127     36     L.127      81

Real Estate Investment Trusts                       F.128     37     L.128      82

Security Brokers and Dealers                        F.129     38     L.129      83

Funding Corporations                                F.130     38     L.130      83




Instruments

Gold and Official Foreign Exchange Holdings         F.200     39     L.200      84

SDR Certificates and Treasury Currency              F.201     39     L.201      84

U.S. Deposits in Foreign Countries                  F.202     39     L.202      84

Net Interbank Transactions                          F.203     40     L.203      85

Checkable Deposits and Currency                     F.204     41     L.204      86

Time and Savings Deposits                           F.205     42     L.205      87

Money Market Mutual Fund Shares                     F.206     42     L.206      87

Federal Funds and Security Repurchase Agreements    F.207     43     L.207      88

Open Market Paper                                   F.208     43     L.208      88

Treasury Securities                                 F.209     44     L.209      89

                                                                     Flows             Levels

Title                                                           Table     Page    Table     Page



Agency- and GSE-backed Securities                               F.210     45      L.210      90

Municipal Securities and Loans                                  F.211     46      L.211      91

Corporate and Foreign Bonds                                     F.212     46      L.212      91

Corporate Equities                                              F.213     47      L.213      92

Mutual Fund Shares                                              F.214     47      L.214      92

Bank Loans Not Elsewhere Classified                             F.215     48      L.215      93

Other Loans and Advances                                        F.216     49      L.216      94

Total Mortgages                                                 F.217     50      L.217      95

         Home Mortgages                                         F.218     51      L.218      96

         Multifamily Residential Mortgages                      F.219     51      L.219      96

         Commercial Mortgages                                   F.220     52      L.220      97

         Farm Mortgages                                         F.221     52      L.221      97

Consumer Credit                                                 F.222     53      L.222      98

Trade Credit                                                    F.223     53      L.223      98

Security Credit                                                 F.224     53      L.224      98

Life Insurance and Pension Fund Reserves                        F.225     54      L.225      99

Taxes Payable by Businesses                                     F.226     54      L.226      99

Proprietors' Equity in Noncorporate Business                    F.227     54      L.227      99

Total Miscellaneous Financial Claims                            F.228     55      L.228     100

         Identified Miscellaneous Financial Claims - Part I     F.229     56      L.229     101

         Identified Miscellaneous Financial Claims - Part II    F.230     57      L.230     102

         Unidentified Miscellaneous Financial Claims            F.231     58      L.231     103

Sector Discrepancies                                            F.11      59

Instrument Discrepancies                                        F.12      59

                                                                    Balance        Reconciliation
                                                                     Sheet
Title                                                            Table     Page    Table     Page



Balance Sheet and Reconciliation Tables

Households and Nonprofit Organizations                           B.100    104      R.100     107

Nonfinancial Corporate Business                                  B.102    105      R.102     108

Nonfarm Noncorporate Business                                    B.103    106      R.103     109




                                                                     Flows             Levels
Title                                                            Table     Page    Table     Page



Supplementary Tables

Nonprofit Organizations                                          F.100.a  110      L.100.a   111

Consolidated Statement for Federal, State, and Local Governments F.106.c  112      L.106.c   113

Private Pension Funds: Defined Benefit Plans                     F.118.b  114      L.118.b   115

Private Pension Funds: Defined Contribution Plans                F.118.c  114      L.118.c   115

Individual Retirement Accounts (IRAs)                            F.225.i  114      L.225.i   115

Flow of Funds Matrix for 2009                                             116                117

Balance Sheet of Households and Nonprofit Organizations
 with Equity Detail                                                                B.100.e   118

                                                                                                                         1




                         Flow of Funds Accounts, First Quarter 2010

          This publication presents the Flow of Funds          L.119) have been revised from 2006:Q3 forward to
Accounts for 2010:Q1.                                          reflect new benchmark data from the Census Bureau.


Data revisions and other changes. The statistics in            7.        The Integrated Macroeconomic Accounts for
the attached tables reflect the use of new or revised          the United States, which combine the Flow of Funds
source data. Most significant revisions appear in recent       Accounts with the National Income and Product
quarters; however, new source information resulted in          Accounts, are now available through the Federal
changes to data for earlier periods.                           Reserve's          Data     Download            Program       at
                                                               www.federalreserve.gov/datadownload/.                  Annual
1.        As a result of two new accounting rules, FAS         data are available from 1960 through 2008. Slightly less
166 and 167, the assets and liabilities of some special        detailed tables are available quarterly from 1992:Q1 to
purpose entities (SPEs) have been moved onto the               2010:Q1. These tables are also available on the Bureau
balance sheets of the U.S.-chartered commercial bank           of Economic Analysis' website at www.bea.gov.
sector   (table  L.110),    the  government-sponsored
enterprise   sector  (table  L.124),   and    the  finance     Explanatory notes for tables D.1, D.2, and D.3.
company sector (table L.127). The consolidated assets          Domestic debt comprises credit market funds borrowed
and liabilities were removed from the agency- and              by U.S. entities from       both       domestic and foreign
GSE-backed mortgage pool sector (L.125) and the                sources,   while      foreign debt       represents   amounts
issuers of asset-backed securities (ABS) sector (table         borrowed by foreign financial and nonfinancial entities
L.126). Almost all of the consolidations resulting from        in  U.S. markets only.       Financial sectors consist of
the new accounting rules occurred in the first quarter of      government-sponsored         enterprises,       agency-   and
2010. In the Flow of Funds Accounts, these changes             GSE-backed          mortgage  pools, and private financial
are treated as "discontinuities" that affect the levels of     institutions.       Credit market debt consists of debt
outstanding assets and liabilities in the relevant sectors,    securities, mortgages, bank loans, commercial paper,
but not the flows (see below for more information on           consumer credit, U.S. government loans, and other
the  relationship   among    flows,    outstandings,  and      loans and advances; it excludes trade debt, loans for the
discontinuities).                                              purpose of carrying securities, and funds raised from
                                                               equity sources.
2.        Assets of the nonfarm nonfinancial corporate
business sector (tables F.102 and L.102) have been                       Growth rates in table D.1 are calculated by
revised from 2008:Q1 forward to reflect advance data           dividing seasonally adjusted flows from table D.2 by
from the Internal Revenue Service (IRS) Statistics of          seasonally adjusted levels at the end of the previous
Income (SOI) for 2008.                                         period from table D.3. Seasonally adjusted levels in
                                                               flow of funds statistics are derived by carrying forward
3.        The property-casualty insurance sector (tables       year-end levels by seasonally adjusted flows. Growth
F.116 and L.116) has been modified to include two              rates calculated from changes in unadjusted levels
additional asset categories: money market fund shares          printed in table L.2 can differ from those in table D.1.
and open market paper.
                                                               Relation of Flows to Outstandings.                Estimates of
4.        The life insurance sector (tables F.117 and          financial assets and liabilities outstanding are linked to
L.117) has been modified to include an additional              data on flows.        However, figures on outstandings
liability category, security RPs (net).                        contain discontinuities or breaks in series that could
                                                               affect analysis of particular relationships over time.
5.      Assets of the private pension fund sector (tables      Specifically, outstandings in the flow of funds accounts
F.118, F.118.b, F.118.c, L.118, L.118.b, and L.118.c),         are related to the flows in the following way:
have been revised from 2005:Q1 forward to reflect new
data from the Department of Labor Form 5500 and the            Outstanding = Outstanding
                                                                                t             t-1+ Flow + Discontinuityt
                                                                                                            t
                                                                               B
                                                                                 B
                                                                                                B
                                                                                                     B
                                                                                                           B
                                                                                                             B
                                                                                                                            B
                                                                                                                              B




Investment Company Institute.                                  where "t" is the time period.


6.        Assets of the state and local government                       Discontinuities     result      from    changes     in

employee retirement fund sector (tables F.119 and              valuation, breaks in source data, and changes in
                                                               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 historical annual data
distortions, percentage changes in assets and liabilities         beginning in 1945 that correspond to the tables
in flow of funds releases should be calculated as:                published in this release. There are files for quarterly
                                                                  data for seasonally adjusted flows, unadjusted flows,
Percentage change = (Flow / Outstanding                           outstandings, balance sheets, and debt (tables D.1, D.2,
                     t             t              t-1
                                                    ) * 100
                         B
                                    B
                                                       B
                       B
                                  B
                                                  B



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

latest quarter's data were compiled is provided in a table
following this introduction. The distinction between                       A Guide to the Flow of Funds Accounts           is

"available" data and "missing" data is not between final          available. The 1,200-page Guide, published in two

and preliminary versions of data, but rather between              volumes in January 2000, explains in detail how the

those source estimates that are fully ready when the              U.S. financial accounts are prepared and the principles

latest quarterly publication is compiled and those that           underlying the accounts. The Guide can be purchased

are not yet completed. However, the items that are                for $20.00 from the Board's Publications Services.

shown as available are, in general, also preliminary in           Publications Services accepts orders accompanied by

the sense that they are subject to revision by source             checks as well as credit card orders.

agencies.
                                                                           The Internet site for this release at the location

Margins of Uncertainty. Flow of funds statistics are              shown above contains a link to an order form for the

subject to uncertainties resulting from measurement               Guide that can be mailed or faxed to Publications

errors in source data, incompatibilities among data from          Services. In addition, the Internet site includes a link to

different sources, potential revisions in both financial          the Guide's descriptions of the tables in the flow of

and nonfinancial series, and incomplete data in parts of          funds accounts.

the accounts. The size of these uncertainties cannot be
quantified in precise statistical terms, but allowance for        Subscription Information. The Federal Reserve Board

them is explicitly made throughout the accounts by the            charges for subscriptions to all statistical releases.

inclusion of "discrepancies" for various sectors and              Inquiries for releases should be directed to:

instrument types. A discrepancy for a sector is the
difference between its measured sources of funds and                         Publications Services, Stop 127

its measured uses of funds. For an instrument category,                             Board of Governors

a discrepancy is the difference between measured funds                        of the Federal Reserve System

borrowed     through       the financial   instrument     and           20th Street and Constitution Avenue, N.W.

measured funds lent through that instrument. The size                             Washington, DC 20551

of such discrepancies relative to the main asset or                                   (202) 452-3244

liability components is one indication of the quality of
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




[THIS PAGE INTENTIONALLY LEFT BLANK]

4



                          Availability of Data for Latest Quarter



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




1. National income and              Second estimate, seasonally adjusted,       Unadjusted flows since 2007 for
   product accounts (NIPA)          for 2010: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 2010: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 2009:Q4;            2008. QFR data since 2009:Q4.
   (tables F.102 and L.102)         Internal Revenue Service Statistics of
                                    Income (IRS/SOI) data through 2008;
                                    securities offerings, mortgages, bank
                                    loans, commercial paper, and other
                                    loans through 2010:Q1.

4. Nonfarm noncorporate             IRS/SOI data through 2007; bank and           Statistics of Income data since
   business                         finance company loans and mortgage            2007.
   (tables F.103 and L.103)         borrowing through 2010: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           2008.
                                    equity in government-sponsored
                                    enterprises through 2010:Q1;
                                    preliminary data for checkable deposits
                                    and currency and trade payables
                                    through 2008.

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,       2007:Q2 and selected financial
                                   and nonmarketable U.S. government              asset detail since 2004:Q2.
                                   security issues through 2010:Q1; total
                                   financial assets through 2007: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 2010:Q1.

                                                                                                               5



8. Rest of the world                 Balance of payments data through        Balance of payments data for
   (U.S. international               2009:Q4. NIPA estimates; data from      2010:Q1.
   transactions)                     bank Reports of Condition and from
   (tables F.107 and L.107)          Treasury International Capital System
                                     through 2010:Q1.


9. Monetary authority                All data through 2010:Q1.               None.
   (tables F.108 and L.108)


10. Commercial banking               All data through 2010: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 2010:Q1.               None.
   (tables F.114 and L.114)

12. Credit unions                    All data through 2010:Q1.               None.
   (tables F.115 and L.115)

13. Property-casualty insurance      All data through 2009:Q4. Preliminary   Final data for 2010:Q1.
    companies                        data for 2010:Q1.
    (tables F.116 and L.116)

14. Life insurance companies         All data through 2009:Q4. Preliminary   Final data for 2010:Q1.
   (tables F.117 and L.117)          data for 2010:Q1.

15. Private pension funds            Quarterly data through 2009:Q4;         Form 5500 data since 2007.
   (tables F.118 and L.118)          Internal Revenue Service/Department     Quarterly data since 2009:Q4.
                                     of Labor/Pension Benefit Guaranty
                                     Corporation Form 5500 data through
                                     2007.

16. State and local government       Detailed data through 2008:Q2 from      Detailed data since 2008:Q2.
   employee retirement funds         the Census Bureau; sample data
   (tables F.119 and L.119)          through 2010:Q1 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 2010:Q1.

18. Money market mutual              All data through 2010:Q1.               None.
   funds
    (tables F.121 and L.121)

19. Mutual funds                     All data through 2010:Q1.               None.
    (tables F.122 and L.122)


20. Closed-end funds                 All data through 2010:Q1.               None.
    (tables F.123 and L.123)

21. Exchange-traded funds            All data through 2010:Q1.               None.
   (tables F.123 and L.123)

6


 22. Government-sponsored        Data for Fannie Mae, Freddie Mac,           None.
    enterprises                  FHLBs, Farmer Mac, FICO, FCS, and
     (tables F.124 and L.124)    REFCORP through 2010:Q1.

 23. Agency- and GSE-backed      Data for Fannie Mae, Freddie Mac, and       None.
    mortgage pools               Ginnie Mae through 2010: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
                                 2010:Q1.

 25. Finance companies           All data through 2010:Q1.                   None.
    (tables F.127 and L.127)

 26. Real estate investment      Data from SNL Financial through             None.
    trusts (REITs)               2010:Q1.
    (tables F.128 and L.128)

                                                                             None.
 27. Security brokers and        Data for firms filing FOCUS and
    dealers                      FOGS reports through 2010: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.

