Financial Update (First Quarter 2010)
Reserve Banks Return $46 Billion to U.S. Treasury
As it does every year, in 2009 the Federal Reserve System transferred most of its net income to the U.S. Treasury. The 2009 transfer totaled $46.1 billion. This amount represents a $14.4 billion increase over 2008's results, primarily the result of increased earnings on securities holdings during 2009.
Securities interest, commercial services generate income
The income that the Reserve Banks generated through fees for providing services such as payments processing for depository institutions contributed an additional $700 million. Additionally, income from reciprocal currency arrangements with other central banks and investments denominated in foreign currencies totaled $2.6 billion in 2009.
Federal Reserve Board policy directs each Reserve Bank to transfer its yearly net income to the U.S. Treasury after paying statutory dividends ($1.4 billion in 2009) to Federal Reserve member banks and making adjustments necessary so that surplus equals paid-in capital ($4.6 billion in 2009).
January 28, 2010