Vol. 27, No. 1
First Quarter 2014
- ViewPoint Examines Housing Market, Banking Conditions
- Atlanta Fed Publishes 2013 Annual Report
- Fed Clarifies Stress Test Guidance
- Atlanta Fed Economist Examines Financial Innovation
- Fed Governor Tarullo Discusses Policy, Financial Stability
- Fed to Issue New Banking Report
- Fed Releases New Bank Loan Officer Survey
- Atlanta Fed President Discusses Economy in 2014
- Reserve Banks Transfer Money to U.S. Treasury
- Janet Yellen Becomes Federal Reserve Chair
- Atlanta Fed's Lockhart Sees U.S. Economy Firming in 2014
- Fed Governor Stein Addresses Traditional Banking's Strengths
- Fed Seeks Comments on Newly Proposed Limits
- Fed Chair Bernanke Looks Back at His Tenure
- Yellen Confirmed as Next Fed Chair
- New Payments Study
Reserve Banks Return Nearly $78 Billion to U.S. Treasury
In 2013 the Federal Reserve System transferred most of its net income to the U.S. Treasury. The 2013 transfer totaled $77.7 billion.
Securities earnings, commercial services generate income
The following list shows the primary components of the Federal Reserve Banks' 2013 net earnings:
- $90.4 billion in earnings on securities acquired through open market operations (U.S. Treasury securities, government-sponsored enterprise [GSE] debt securities, and federal agency and GSE mortgage-backed securities)
- $436 million for income that the Reserve Banks generated through fees for providing services
- $143 million attributable to the consolidated limited-liability companies that were created in response to the financial crisis
The Reserve Banks had interest expenses of $5.2 billion on depository institutions' reserve balances and term deposits and recorded losses of $1.3 billion that resulted from the daily revaluation of foreign currency denominated asset holdings at current exchange rates.
The operating expenses of the 12 Reserve Banks totaled $3.8 billion in 2013. In addition, the Reserve Banks were assessed $702 million for the costs related to producing, issuing, and retiring currency; $580 million for Federal Reserve Board expenditures; and $563 million to fund the operations of the Consumer Financial Protection Bureau.
Federal Reserve Board policy directs each Reserve Bank to transfer its yearly net income to the U.S. Treasury after paying statutory dividends ($1.6 billion in 2013) to Federal Reserve member banks and making adjustments necessary so that surplus equals paid-in capital ($147 million in 2013).
February 7, 2014