Federal Reserve made $14 billion on turmoil loans: report

| Thomson-Reuters | August 31, 2009

LONDON (Reuters) – The Federal Reserve has made $14 billion in profits on loans made in the last two years, The Financial Times reported on Monday, citing officials close to the matter.

The U.S. central bank also earned about $19 billion from interest and fees charged to institutions that tapped liquidity facilities during the global financial crisis, the report said.

If the Fed had invested the same amounted loaned out in three-month Treasury bills since August 2007, it would have earned $5 billion in interest, the FT said.

This estimate excludes company bailouts and purchases of long-term assets as well as unrealized gains or losses on the Fed’s portfolio of mortgage-backed securities and Treasuries purchased as part of the $1.75 trillion asset purchase program.

The Fed was not immediately available for comment on the report.

© Thomson Reuters 2009. All rights reserved.

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About rico49

Writer, progresive activist, open source software developer. Working to meet the needs of under- and un-employed people globally and in the United States.
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