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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

October 2010 (1.5 MB PDF)

Overview

Recent Developments

  • On September 30, 2010, American International Group, Inc. (AIG) announced an agreement with the U.S. Department of the Treasury, the Federal Reserve Bank of New York (FRBNY), and the trustees of the AIG Credit Facility Trust on a comprehensive recapitalization plan designed to repay all its obligations to American taxpayers. The measures include an accelerated repayment of the outstanding balance (including all accrued interest and fees) on the FRBNY revolving credit facility and termination of that facility, the acquisition of the majority of the FRBNY's preferred interests in the AIA and ALICO special purpose vehicles (SPVs) by the U.S. Treasury, and the conversion of the AIG preferred stock currently owned by the Treasury and the Credit Facility Trust into common equity of AIG.
  • On September 23, 2010, the FRBNY published the Reverse Repurchase Transaction Eligibility Criteria and Application for Money Funds II, allowing a second wave of money market mutual funds to apply to participate in reserve repurchase (reverse repo) transactions. The FRBNY also published an updated version of the Reverse Repurchase Program Form Master Repurchase Agreement for Money Market Mutual Funds, including applicable Annexes.
  • On October 12, 2010, the FRBNY announced another series of small-scale, real-value reverse repo transactions using all eligible collateral types. The first set of operations, conducted using only the expanded reverse repo transaction counterparties announced on August 18, 2010, commenced the following day, on October 13, 2010. The second set of operations, which was open to all eligible reverse repo counterparties, commenced on October 18, 2010.
  • On October 4, 2010, the Federal Reserve conducted an auction of $5 billion of 28-day term deposits through its Term Deposit Facility (TDF). The awarded deposits settled on October 7, 2010, and will mature on November 4, 2010. The next auction of $5 billion of 28-day term deposits will be conducted on November 29, 2010. The schedule, amounts, and other terms for small-value auctions to be conducted in 2011 will be announced at later dates. On September 8, 2010, the Federal Reserve announced that it has authorized ongoing small-value offerings of term deposits under the TDF. The development of the TDF and the ongoing small-value TDF offerings are a matter of prudent planning and have no implications for the near-term conduct of monetary policy.

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

Item Current
September 29, 2010 		Change from
August 25, 2010 		Change from
September 30, 2009
Total assets 2,302 -2 158
Selected assets
   Securities held outright 2,044 -* 451
       U.S. Treasury securities1 812 28 43
       Federal agency debt securities1 154 -3 23
       Mortgage-backed securities2 1,079 -24 387
       Memo: Overnight securities lending3 8 +* -5
       Memo: Net commitments to purchase mortgage-backed securities4 0 0 -184
   Lending to depository institutions5 * +* -29
   Central bank liquidity swaps6 * +* -57
   Lending through other credit facilities 31 -6 -53
       Net portfolio holdings of Commercial Paper Funding Facility LLC 0 +* -41
       Term Asset-Backed Securities Loan Facility7 31 -6 -12
   Net portfolio holdings of TALF LLC8 1 +* 1
   Support for specific institutions 112 -2 12
       Credit extended to American International Group, Inc., net9 19 -* -20
       Net portfolio holdings of Maiden Lane LLC10 28 -1 2
       Net portfolio holdings of Maiden Lane II LLC10 16 -* 1
       Net portfolio holdings of Maiden Lane III LLC10 23 -* 2
       Preferred interests in AIA Aurora LLC and ALICO Holdings LLC7 26 0 26
Total liabilities 2,245 -3 152
Selected liabilities
   Federal Reserve notes in circulation 914 8 41
   Term deposits of depository institutions 2 0 2
   Other deposits of depository institutions 984 -69 136
   U.S. Treasury, general account 58 52 -50
   U.S. Treasury, supplementary financing account 200 +* 35
   Other deposits * -* -16
Total capital 57 1 6
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, 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 September 29, 2010, TALF LLC had purchased no assets from the FRBNY. Return to table
9. Excludes credit extended to Maiden Lane II and III LLCs. Return to table
10. Fair value, reflecting values as of June 30, 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