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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

January 2011 (1.67 MB PDF)


Recent Developments

The Overview section of this report highlights developments in the operations of the Federal Reserve's credit and liquidity programs and facilities over the last five weeks, and presents data describing changes in the assets, liabilities, and total capital of the Federal Reserve System.

Federal Reserve Announces Closure of American International Group, Inc. (AIG) Revolving Credit Facility

  • On January 14, 2011, AIG, the U.S. Department of the Treasury, and the Federal Reserve Bank of New York (FRBNY) closed the comprehensive recapitalization plan, initially announced on September 30, 2010, to restructure the assistance provided by the U.S. government to AIG. Upon closing, the cash proceeds from certain asset dispositions, including the initial public offering (IPO) of AIA Group Limited (AIA) and the sale of American Life Insurance Company (ALICO), were used first to repay in full the amount then outstanding under the AIG revolving credit facility, including accrued interest and fees, and then to redeem a portion of the preferred interests in AIA Aurora LLC and ALICO Holdings LLC previously received by the FRBNY in exchange for an equivalent reduction of the amount of debt outstanding on the revolving credit facility. AIG purchased the remaining preferred interests from the FRBNY, including all accrued dividends, through a draw on the Treasury's Series F preferred stock commitment and transferred the preferred interests purchased from the FRBNY to the Treasury as consideration for the draw on the available Series F funds. As a result of the closing of the AIG recapitalization plan, the revolving credit facility was fully repaid, and the FRBNY's commitment to lend any further funds was terminated.

Federal Reserve Announces Preliminary 2010 Income and Expense Data and Transfers to the Treasury

  • On January 10, 2011, the Federal Reserve Board announced preliminary unaudited results indicating that the Reserve Banks provided for payments of approximately $78.4 billion of their estimated 2010 net income of $80.9 billion to the Treasury. These payments represent an increase of about $31 billion over the payments made in 2009, primarily due to increased earnings on securities holdings during 2010.

Federal Open Market Committee (FOMC) Authorizes Extension of Swap Lines

  • On December 21, 2010, the FOMC announced that it had authorized an extension, through August 1, 2011, of its temporary U.S. dollar liquidity swap arrangements with the Bank of Canada, the Bank of England, the European Central Bank, and the Swiss National Bank. The swap arrangements, established in May 2010, had been authorized through January 2011.

FRBNY Announces CUSIP Aggregation

  • On January 10, 2011, the FRBNY announced that it will begin a process to streamline the administration of agency mortgage-backed securities (MBS) held in the System Open Market Account (SOMA) portfolio by consolidating these securities through a service offered by Fannie Mae and Freddie Mac called CUSIP aggregation.

Federal Reserve Implements Accounting Policy Change

  • Effective January 1, 2011, as a result of an accounting policy change, on a daily basis each Federal Reserve Bank will adjust the balance in its surplus account to equate surplus with capital paid-in and, in addition, will adjust its liability for the distribution of residual earnings to the Treasury.

Federal Reserve System Selected Assets, Liabilities, and Total Capital

Table 1 of this section outlines 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 of this section maps out 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

Item Current
December 29, 2010
Change from
November 24, 2010
Change from
December 30, 2009
Total assets 2,424 +75 +187
Selected assets
   Securities held outright 2,156 +69 +311
       U.S. Treasury securities1 1,016 +115 +239
       Federal agency debt securities1 147 -1 -13
       Mortgage-backed securities2 992 -46 +84
       Memo: Overnight securities lending3 15 +8 -*
       Memo: Net commitments to purchase mortgage-
          backed securities4
0 0 -155
   Lending to depository institutions5 * -1 -20
   Central bank liquidity swaps6 * +* -10
   Lending through other credit facilities 25 -1 -37
       Net portfolio holdings of Commercial Paper Funding
          Facility LLC
0 0 -14
       Term Asset-Backed Securities Loan Facility7 25 -1 -23
   Net portfolio holdings of TALF LLC8 1 +* +1
   Support for specific institutions 113 -* +1
       Credit extended to American International Group,
           Inc., net9
20 +* -2
       Net portfolio holdings of Maiden Lane LLC10 27 -1 +*
       Net portfolio holdings of Maiden Lane II LLC10 16 -* +*
       Net portfolio holdings of Maiden Lane III LLC10 23 -* +*
       Preferred interests in AIA Aurora LLC and ALICO
           Holdings LLC7
26 0 +1
Total liabilities 2,367 +75 +182
Selected liabilities
   Federal Reserve notes in circulation 944 +7 +54
   Term deposits of depository institutions 5 +5 +5
   Other deposits of depository institutions 1,021 -7 -4
   U.S. Treasury, general account 89 +65 -61
   U.S. Treasury, supplementary financing account 200 0 +195
   Other deposits * -* -27
   Funds from American International Group, Inc. asset
           dispositions, held as agent11
27 +* +27
Total capital 57 -* +5
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, 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 December 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 September 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
11. Pending the closing of the recapitalization plan announced by American International Group, Inc. (AIG) on September 30, 2010, the cash proceeds from the disposition of certain AIG assets will be held by the FRBNY as agent. At the closing of the recapitalization plan, the proceeds will be used first to repay in full the credit extended to AIG by the FRBNY under the revolving credit facility and then to retire a portion of the FRBNY's preferred interests in AIA Aurora LLC and ALICO Holdings LLC (preferred interests). Alternatively, if the recapitalization plan is terminated under the terms of the plan, then the proceeds from the initial public offering of AIA and the sale of ALICO will be used to redeem the preferred interests in accordance with the AIA Aurora LLC and ALICO Holdings LLC limited liability company agreements, and any excess proceeds from these transactions, as well as proceeds from the disposition of other assets, will be used to repay the credit extended to AIG under the revolving credit facility. Return to table

Figure 1. Credit and liquidity programs and the Federal Reserve's balance sheet

Accessible version

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Last update: August 2, 2013