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Board of Governors of the Federal Reserve System
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Board of Governors of the Federal Reserve System

Monthly Report on Credit and Liquidity Programs
and the Balance Sheet

June 2010 (1.5 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.
  • In early June 2010, Prudential plc announced its intention to not proceed with the purchase of AIA Group for approximately $35.5 billion from American International Group, Inc. (AIG). The cash proceeds from the sale were expected to be used to redeem the Federal Reserve Bank of New York's (FRBNY's) preferred interests in AIA LLC of approximately $16 billion and to repay approximately $9 billion under the FRBNY's line of credit agreement with AIG. An agreement for the sale of AIA Group had been announced on March 1, 2010.
  • On June 4, 2010, amendments to Regulation D (Reserve Requirements of Depository Institutions) that authorize the Reserve Banks to offer term deposits to institutions that are eligible to receive earnings on balances maintained at Reserve Banks became effective. Reserve Banks will offer term deposits through the Term Deposit Facility (TDF). On May 28, 2010, the Federal Reserve announced that it scheduled three small-value auctions of term deposits through the TDF over the next two months, and may schedule up to two additional small-value TDF auctions later in the summer.
  • On June 14, 2010, the Federal Reserve conducted its first small-value auction, of $1 billion in 14-day term deposits, through the TDF. The auction, which settled on June 17, 2010, was well subscribed, with a bid-to-cover ratio of 6.14 and a stop-out rate of 0.27 percent. In addition, $152 million was awarded to noncompetitive bidders. These small-value auctions are a matter of prudent planning and have no implications for the near-term conduct of monetary policy. More information on 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.
  • Information about the Commercial Paper Funding Facility (CPFF) is now included in Appendix B of this report, as the remaining holdings of commercial paper under the CPFF have matured.

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

Item Current
May 26, 2010 		Change from
April 28, 2010 		Change from
May 27, 2009
Total assets 2,338 4 256
Selected assets
   Securities held outright 2,057 15 950
       U.S. Treasury securities1 777 +* 177
       Federal agency debt securities1 167 -2 87
       Mortgage-backed securities2 1,113 17 685
       Memo: Overnight securities lending3 3 -2 -5
       Memo: Net commitments to purchase mortgage-backed
          securities4 		36 -29 -32
   Lending to depository institutions5 5 -1 -33
   Central bank liquidity swaps6 1 1 -181
   Lending through other credit facilities 44 -6 -121
       Net portfolio holdings of Commercial Paper Funding
           Facility LLC7 		* -5 -149
       Term Asset-Backed Securities Loan Facility8 44 -1 29
   Net portfolio holdings of TALF LLC9 * +* +*
   Support for specific institutions 119 -1 13
       Credit extended to American International
           Group, Inc., net10 		26 -1 -18
       Net portfolio holdings of Maiden Lane LLC11 28 +* 2
       Net portfolio holdings of Maiden Lane II LLC11 16 -* -*
       Net portfolio holdings of Maiden Lane III LLC11 23 -1 3
       Preferred interests in AIA Aurora LLC and ALICO
           Holdings LLC8 		25 0 25
Total liabilities 2,282 4 245
Selected liabilities
   Federal Reserve notes in circulation 900 5 30
   Deposits of depository institutions 1,088 39 211
   U.S. Treasury, general account 17 -40 6
   U.S. Treasury, supplementary financing account 200 0 +*
   Other deposits * +* +*
Total capital 55 -* 10
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. 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. Includes about $2 million in other investments as of May 26, 2010. Return to table
8. Book value. Return to table
9. As of May 26, 2010, TALF LLC had purchased no assets from the FRBNY. Return to table
10. Excludes credit extended to Maiden Lane II and III LLCs. Return to table
11. 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

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Last update: August 2, 2013