Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Fed makes big profit from bailout

By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- The Federal Reserve banks that form the backbone of the nation's financial system transferred an extra-large payload to the U.S. Treasury last year, as they reaped interest from Wall Street bailouts.

The 12 Federal Reserve banks reported that their 2009 income totaled $53.4 billion, a jump of $17.9 billion, or one-third, from the year before.

The board of governors of the Federal Reserve system attributed this increase to a surge in the holding of mortgage-backed securities to prop up the devastated housing market.

The banks said they transferred most of this money, $47.4 billion, to the U.S. Treasury in 2009, an increase of 50%, or $15.7 billion, from the amount they transferred in 2008.

The assets of the Federal Reserve banks totaled $2.235 trillion at the end of 2009, a decline of $11 billion from the prior year. The banks reported that the biggest change in their portfolio was an increase of $919 billion in mortgage-back securities.

Federal Reserve chairman Ben Bernanke said the financial disclosure "reaffirms our commitment to transparency and to the responsible stewardship of public resources." To top of page

Index Last Change % Change
Dow 21,394.76 -2.53 -0.01%
Nasdaq 6,265.25 28.56 0.46%
S&P 500 2,438.30 3.80 0.16%
Treasuries 2.14 -0.01 -0.42%
Data as of 3:26am ET
Company Price Change % Change
Advanced Micro Devic... 14.17 -0.21 -1.46%
Bank of America Corp... 22.82 -0.11 -0.48%
Micron Technology In... 31.73 -0.16 -0.50%
Ford Motor Co 11.04 -0.09 -0.81%
Oracle Corp 50.95 0.65 1.29%
Data as of Jun 23
Sponsors

Sections

A federal judge says Ivanka Trump must give a deposition in a lawsuit brought against her by an Italian shoemaker claiming her fashion label copied its designs. More

Orlando Lopez's parents brought him to the U.S. seeking the American Dream, but he didn't find true happiness until after he was deported to Mexico. More

The average guest at a wedding last year spent $888 per wedding, according to a study from the Knot. For those in the wedding party, the price of being a stand-up friend was over $1,000. More