skip to main navigation skip to secondary navigation skip to content
Board of Governors of the Federal Reserve System
skip to content
Board of Governors of the Federal Reserve System

Monthly Report on Credit and Liquidity Programs
and the Balance Sheet

May 2010 (1.7 MB PDF)

Overview

Recent Developments

  • The Federal Reserve has closed many of the special liquidity facilities that were created to support financial markets during the crisis. The Term Asset-Backed Securities Loan Facility (TALF) remains open to provide financing to investors to acquire newly issued commercial mortgage-backed securities (CMBS); this facility is scheduled to close on June 30, 2010.
  • Earlier this month, the Federal Reserve re-established temporary U.S. dollar liquidity swap facilities with a number of foreign central banks in response to the re-emergence of strains in offshore U.S. dollar short-term funding markets. Temporary swap arrangements--which had expired on February 1, 2010--have been re-established with the Bank of Canada, the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank. The first drawing on the new swap lines settled on May 12, 2010. Detailed information about drawings on the swap lines by the participating central banks is presented on the Federal Reserve Bank of New York's (FRBNY's) website at www.newyorkfed.org/markets/fxswap.
  • All remaining holdings of commercial paper under the Commercial Paper Funding Facility (CPFF), which provided a backstop to U.S. issuers of commercial paper through a specially created limited liability company (LLC) called CPFF LLC, matured on April 26, 2010. The CPFF incurred no losses on its commercial paper holdings and accumulated nearly $5 billion in earnings, primarily from interest income, credit enhancement fees, and registration fees. The Federal Reserve anticipates that the CPFF LLC will be dissolved following the payment of any residual expenses and the termination and expiration of existing contractual agreements.
  • On April 30, 2010, the Federal Reserve approved amendments to Regulation D (Reserve Requirements of Depository Institutions) authorizing the Reserve Banks to offer term deposits to institutions that are eligible to receive earnings on their balances at Reserve Banks. The amendments are effective on June 4, 2010. Term deposits will facilitate the implementation of monetary policy by providing a new tool by which the Federal Reserve can manage the aggregate quantity of reserve balances held by depository institutions. Reserve banks will offer term deposits through the Term Deposit Facility (TDF). On May 10, 2010, the Federal Reserve authorized up to five small-value offerings of term deposits under the TDF to be conducted in coming months. The development of the TDF and the small-value TDF offerings is part of a process of prudent planning and has no implications for monetary policy in the near term. More information on term deposits and future small-value offerings is available through the TDF Resource Center at www.frbservices.org/centralbank/term_deposit_facility.html.
  • On April 30, 2010, the FRBNY published the Reverse Repurchase Program Form Master Repurchase Agreement for Money Funds (MRA), which sets out the legal terms and conditions under which FRBNY and its money market mutual fund counterparties may undertake reverse repurchase agreement transactions (reverse repos). Publication of the MRA is part of the Federal Reserve's larger effort to prepare for the potential need to conduct large-scale reverse repos with an expanded set of counterparties in addition to the existing set of primary dealer counterparties. The first set of expanded counterparties is domestic money market mutual funds. These actions are part of a process of prudent planning by the Federal Reserve and have no implications for monetary policy decisions in the near term.

Table 1. Assets, Liabilities, and Capital of the Federal Reserve System
Billions of dollars

Item Current
April 28, 2010 		Change from
March 31, 2010 		Change from
April 29, 2009
Total assets 2,334 +23 +265
Selected assets
   Securities held outright 2,042 +28 +1,059
       U.S. Treasury securities1 777 +* +228
       Federal agency debt securities1 169 -* +101
       Mortgage-backed securities2 1,069 +27 +730
       Memo: Overnight securities lending3 5 -9 +1
       Memo: Net commitments to purchase mortgage-backed securities4 65 -39 +33
   Lending to depository and other financial institutions 6 -6 -443
       Primary, secondary, and seasonal credit 6 -2 -39
       Term auction credit 0 -3 -404
   Lending through other credit facilities 50 -5 -138
       Net portfolio holdings of Commercial Paper Funding Facility LLC5 5 -3 -177
       Term Asset-Backed Securities Loan Facility6 45 -2 +39
   Net portfolio holdings of TALF LLC7 * +* +*
   Support for specific institutions 120 +4 +2
       Credit extended to American International Group, Inc., net8 27 +2 -18
       Net portfolio holdings of Maiden Lane LLC9 28 +1 +1
       Net portfolio holdings of Maiden Lane II LLC9 16 +1 -2
       Net portfolio holdings of Maiden Lane III LLC9 24 +2 -3
       Preferred interests in AIA Aurora LLC and ALICO Holdings LLC6 25 0 +25
Total liabilities 2,278 +20 +256
Selected liabilities
   Federal Reserve notes in circulation 895 +1 +32
   Deposits of depository institutions 1,049 -5 +236
   U.S. Treasury, general account 57 -35 -6
   U.S. Treasury, supplementary financing account 200 +75 0
   Other deposits * -19 -1
Total capital 55 +3 +8
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 as well as dollar rolls. Return to table
5. Includes about $5 billion in other investments as of April 28, 2010. Return to table
6. Book value. Return to table
7. As of April 28, 2010, TALF LLC had purchased no assets from the FRBNY. Return to table
8. Excludes credit extended to Maiden Lane II and III LLCs. Return to table
9. Fair value, reflecting values as of March 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

Figure 1. Credit and Liquidity Programs and the Federal Reserve's Balance Sheet
Accessible version

Return to topReturn to top

Last update: August 2, 2013