Federal Reserve makes record $52.1bn profit

http://news.bbc.co.uk/2/hi/business/8454535.stm

They don't give a number source or a breakdown of where the money came from.

The Federal Reserve made a profit of $52.1bn (£32.2bn) in 2009, a rise of 47% over the previous year.

The sum allowed the central bank to pay a record $46.1bn to the US Treasury last year.

That was the largest amount ever paid by the central bank since its creation in 1914.

The record figure was largely thanks to its attempts to support the financial system throughout the ongoing financial crisis.

The Fed funds itself from its own operations and returns any profits to the Treasury department.

Taxpayer gains

The figures suggest that US taxpayers have, so far, gained money from the US government's action in propping up the system.

Some of the profit has come from interest earned on government bonds and mortgage-related securities - including those of mortgage giants Fannie Mae and Freddie Mac.

The emergency lending programmes instituted by the central bank during the last year's financial crisis helped swell the Fed's balance sheet to more than $2tn.

They were designed to keep down interest rates and get banks lending to each other again, hoping to spark an economic recovery.

The Fed could also lose money on its holdings if it sells them at a time when they have fallen in value.

The Fed also earned money from its emergency loans to banks and other firms, such as the giant carmakers. It charged both interest and fees on these.
I'd love to know where this money came from.
 
It's got to be the biggest shadow accounting that has ever taken place in the history of the world. For all we know, they ran the printing press for twenty minutes and handed that over to the Treasury. Or typed a few numbers into the Treasury's computer. Since HR 1207 is pretty popular, I'm willing to bet this was put together to show everyone that there's nothing wrong with the fed; that everything is peachy.
 
[quote name='fatherofcaitlyn']In a few years, that record profit could feed a family of four.[/QUOTE]

Yeah, America's obesity problem is really getting out of control...

~HotShotX
 
bread's done
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