Stimulus.org - Financial Sector Policy

Reverse Repurchase Agreement Program

Jason Peuquet — Tue, 09 Mar 2010 22:07:30 +0000

Date:

March 8, 2010

Policy Area:

Financial Sector Policy

Policy Area:

Monetary Policy

Economic Target:

Financial Institutions

Action Type:

Other

Maximum Amount Special Symbol:

Amount Spent:

The New York Federal Reserve announced a new Reverse Repurchase Agreement Program to reduce some of the liquidity in financial markets. Under the program, the Fed will sell securities from it's portfolio with agreements to repurchase them at later dates. This is an additional sign of tightening from the Fed, in light of last month's increase in the discount rate from 0.5 to 0.75 percent.

The New York Fed originally announced this program in October 2009 in an operating policy statement, stating that they had been working internally on the operational details of repurcahses and reverse repurchases to make it a viable option for draining excess liquidity if the FOMC decided such a program should be used. In the statement, the Fed also announced that reverse repos are nothing new and have even "been in the Federal Reserve's toolkit for years, and the Federal Reserve has conducted them both as recently as December 2008."

Even though this can be interpretted as a method of tightening, the Fed's statement yesterday maintained that the announcement of this program should affect expectations on other monetary policy moves.

Source:

New York Fed Operating Policy Statement 10/19/2009

New York Fed Operating Policy Statement 3/8/2010

Notes:

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FDIC Bank Takeovers in 2010

Jason Peuquet — Mon, 11 Jan 2010 14:27:31 +0000

Bank Takeovers in 2010

Policy Area:

Financial Sector Policy

Economic Target:

Depository Institutions

Action Type:

Bank Takeover

Maximum Amount:

79874600000

Amount Spent:

22170200000

Deficit Impact:

22170200000

This entry tracks FDIC takeovers of banks in 2010.

Source:

Federal Deposit Insurance Corporation Bank Failure List

Notes:

Although FDIC costs are counted on-budget, official estimates assume that they should eventually be offset by proceeds from the sale of liquidated assets and higher premiums for deposit insurance. Maximum amount indicates value of all bank deposits. Amount spent represents FDIC-estimated cost to deposit insurance fund.

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IRS Exempts Citigroup from Tax on Repurchase of TARP Assets

Jason Peuquet — Wed, 16 Dec 2009 19:26:28 +0000

Date:

December 11, 2009

Who:

IRS

Who:

Treasury

Policy Area:

Financial Sector Policy

Economic Target:

Citigroup

Action Type:

Tax Break

Maximum Amount:

38000000000

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

The IRS agreed to give up billions in tax money in exchange for Citigroup’s repurchase of $20 billion of its assets held by TARP.

Following long-standing carryback loss rules, federal tax law permits companies to reduce their taxable incomes in profit-earning years by the amount of losses in bad years. Under the law, the IRS, which is part of the Treasury, restricts the transfer of these benefits to new ownership, in the case of a merger, as a way of preventing companies from buying unprofitable firms to evade taxes. As the law exists, Citi’s repurchase of assets held by the Treasury would qualify as a change in ownership, and thus exclude Citi from the tax benefit.

Since Citi has built up $38 billion in losses, the IRS notice exempts up to $38 billion in future Citi profits from taxable income.

This IRS ruling adds to the list of methods in which the Treasury, FDIC, and Fed have supported Citi. Click to see companion programs under TARP (Capital Purcahse Program and Targeted Investment Program), FDIC Gaurantee of Citigroup Assets, and Fed Guarantee of Citigroup Assets.

Source:

Washington Post article 12/16/2009

Notes:

According to a Washington Post article, the exact value of the IRS ruling will depend on Citi’s future profits and other factors. But accounting experts estimated that Citi will save at least several billion dollars. Some experts have also said that the lost tax revenue could easily outweigh the profits the Treasury will likely make in selling its ownership stake in Citi.

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Prudent Commercial Real Estate Loan Workouts

Jason Peuquet — Wed, 25 Nov 2009 18:53:26 +0000

Date:

October 30, 2009

Who:

Fed

Policy Area:

Financial Sector Policy

Economic Target:

Financial Institutions

Action Type:

Regulatory Change

Maximum Amount Special Symbol:

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

This policy statement, adopted by each of the financial regulators, provides guidance for examiners and financial institutions that are working with commercial real estate (CRE) borrowers who are experiencing diminished operating cash flows, depreciated collateral values, or prolonged delays in selling or renting commercial properties.

This policy statement details risk-management practices for loan workouts that support prudent and pragmatic credit and business decisionmaking.

Financial institutions that implement loan workouts for CRE as inidicated in this policy statement will not be subject to criticism for engaging in CRE loans, even if restructured loans have weaknesses and poor ratings. In addition, the credit rating for reviewed loans will not be lowered if solely the value of the collateral declines.

Source:

Federal Reserve Release 10/30/2009

Policy Statement for CRE Loans Workouts

Notes:

Associated costs, if any, are unknown.

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AIG Investment Program

Jason Peuquet — Tue, 03 Nov 2009 21:59:38 +0000

Policy Area:

Financial Sector Policy

Economic Target:

AIG

Action Type:

Equity Purchase

Maximum Amount:

70000000000

Amount Spent:

16320000000

Deficit Impact:

22000000000

In September 2008, the Federal Reserve and the Treasury determined that an AIG default could have placed enormous financial pressures and losses on AIGs creditors and counterparties, triggered disruptions in commercial paper markets, raised borrowing costs, and could have diminished the availability of credit, all undermining business and investor confidence.

Despite the Federal Reserve’s initial moves to shore up AIG through the $60 billion line of credit and a $37.8 billion loan, AIG’s condition continued to decline. The Treasury joined the Federal Reserve in its efforts to assist AIG on November 10, 2008, purchasing $40 billion in preferred equity shares to allow AIG to obtain new capital without adding any additional leverage, all in an effort to improve AIGs credit rating. Again in March 2009, the Treasury deemed AIG to be in need of further assistance given continued market declines and the difficulty AIG had experienced in finding potential buyers for various units, under the government’s divestiture plan. The Treasury provided AIG with a $30 billion Equity Capital Facility in exchange for 300,000 shared of Series F preferred stock. The U.S. government now has roughly an 80 percent ownership stake in AIG. As of June 30, 2009, AIG had roughly $830 billion in assets.

On 1/14/2011, Treasury made several moves in accordance with its AIG exit plan. AIG repaid the FRBNY credit facility and Treasury converted some of its assets to common stock (while receiving additional stock). These moves left Treasury with about 1.65 billion shares of AIG, giving it 92 percent ownership of the company. Treasury will now sell off these shares as they see fit.

On May 24, 2011, Treasury sold 200 million shares of common stock for $5.8 billion in proceeds. This move reduced Treasury's share of AIG common stock from 92 percent to 77 percent.

The program was originally titled "Systemically Important and Failing Institutions," but has since been renamed "American International Group Investment Program."

Source:

Government Accountability Office Report on AIG, Septmber 2009

January 14 Treasury Release

Notes:

Amount spent indicates credit issued as of 12/7/2012 (http://www.ustreas.gov/initiatives/eesa/transactions.shtml). Deficit impact calculated by CRFB, using CBO's practice of estimating costs on a risk-adjusted present value basis. Maximum amount specified in Treasury term sheet.

Deficit impact is CBO's estimate of the total cost of the AIG program as last stated in the November 2010 Report on TARP.

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Asset Guarantee Program

Jason Peuquet — Tue, 03 Nov 2009 21:48:44 +0000

Policy Area:

Financial Sector Policy

Economic Target:

Financial Institutions

Action Type:

Government Guarantee

Maximum Amount:

12500000000

Amount Spent:

Deficit Impact:

-2250000000

In addition to purchasing Bank of America and Citigroup stock, the TARP program participated in a multi-agency guarantee, in conjunction with the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), of around $425 billion in Citigroup and Bank of America assets. The terms of the guarantees stipulate that Citigroup and Bank of America would cover all portfolio losses up to $29 billion and $10 billion , respectively, while 90 percent of additional losses from both companies would be covered by the federal government.

See the companion guarantess of Bank of America assets by the Fed and FDIC.

See the companion guarantees of Citigroup assets by the Fed and FDIC.

Source:

January 16, 2009 Treasury Release

Treasury Nov. 23 Release

Notes:

Maximum amount figure represents Treasury's share of total assets under guarantee. Deficit impact based on amount spent.

Deficit impact is derived from Treasury's reporting of TARP transactions.

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Targeted Investment Program

Jason Peuquet — Tue, 03 Nov 2009 21:33:01 +0000

Policy Area:

Financial Sector Policy

Economic Target:

Financial Institutions

Action Type:

Equity Purchase

Maximum Amount:

40000000000

Amount Spent:

Deficit Impact:

-1250000000

In late 2008 the Treasury announced that it would provide “exceptional assistance” to three institutions—Bank of America, Citigroup, and AIG—deemed to be vital for financial markets and created three programs—the Targeted Investment Program, the Asset Guarantee Program, and Systemically Important and Failing Institutions—to provide the targeted assistance. Through the TIP, the Treasury purchased $20 billion in preferred shares from both Bank of American and Citigroup.

This purchase was on top of an initial $25 billion investment through the Capital Purchase Program, and followed by a multi-agency government guarantee of approximately $118 billion of its assets offered through the Department of Treasury, FDIC, and Federal Reserve.

In December 2009, both Bank of America and Citigroup repurchased $20 billion each in their held by TIP. Currently, there are no outstanding investments for this program.

Source:

January 16, 2009 Treasury Release

Troubled Asset Relief Program

Notes:

Amount spent indicates investment made as of 12/7/2010 (http://www.ustreas.gov/initiatives/eesa/transactions.shtml). Budgetary impact calculated by CRFB using CBO's practice of estimating costs on a risk-adjusted present value basis.

Deficit impact is derived from CBO's estimated subsidy cost for the Targeted Investment Program investments in Bank of America and Citigroup, as listed in CBO's January 2010 baseline.

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Fed Payment of Interest on Bank Reserves

Maya MacGuineas — Mon, 17 Aug 2009 14:12:07 +0000

Date:

October 6, 2008

Who:

Fed

Policy Area:

Financial Sector Policy

Economic Target:

Depository Institutions

Action Type:

Regulatory Change

Maximum Amount Special Symbol:

Amount Spent Special Symbol:

Federal Reserve will pay interest on depository institutions' required and excess cash reserves. Program originally slated to begin in October of 2011 was moved up to October 2008 because of the financial crisis. Objective is to compensate depository institutions for lost income they could derive by investing reserve funds elsewhere.

Source:

Federal Reserve Oct. 6 Release

Notes:

Cost of paying interest is unknown. Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.

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Raise Limit on Insured Deposits: $100K to $250K

Maya MacGuineas — Mon, 17 Aug 2009 14:09:49 +0000

Date:

October 3, 2008

Who:

FDIC

Policy Area:

Financial Sector Policy

Economic Target:

Consumers

Economic Target:

Depository Institutions

Action Type:

Regulatory Change

Maximum Amount:

700000000000

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

The Emergency Economic Stabilization Act of 2008 temporarily raised from $100,000 to $250,000 the amount of deposit and share insurance in FDIC and Federal Credit Union member organizations. Initially, this law stated that the increased limit on insured deposits would last until 12/31/2009. However, On 5/20/2009 President Obama signed the Helping Families Save Their Homes Act, extending the temporary deposit insurance limit of $250,000 untill 12/31/2013. After that date, the FDIC deposit insurance limit will return to $100,000 except for IRAs and other retirement accounts.

Source:

Emergency Economic Stabilization Act of 2008

FDIC Release 5/22/2009

Notes:

Limit will return to $100,000 after Dec. 31, 2013. Maximum amount indicates total value of new insured deposits.

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Enhanced Consumer Protection for Credit Cards

Maya MacGuineas — Mon, 17 Aug 2009 14:04:40 +0000

Date:

December 18, 2008

Who:

Fed

Who:

NCUA

Who:

Treasury

Policy Area:

Financial Sector Policy

Economic Target:

Consumers

Economic Target:

Financial Institutions

Action Type:

Regulatory Change

Maximum Amount Special Symbol:

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

New credit card regulations adopted under the Federal Trade Commission Act, in coordination with similar sets of new rules adopted by the Office of Thrift Supervision and the National Credit Union Administration.

The new regulations, as described on the Federal Reserve's website:

"Protect consumers from unexpected interest charges, including increases in the rate during the first year after account opening and increases in the rate charged on pre-existing credit card balances.
Forbid banks from imposing interest charges using the "two-cycle" billing method.
Require that consumers receive a reasonable amount of time to make their credit card payments.
Prohibit the use of payment allocation methods that unfairly maximize interest charges.
Address subprime credit cards by limiting the fees that reduce the amount of available credit."

Source:

Federal Reserve Announcement 12/18/2008

Details of New Rules

Notes:

Associated costs, if any, are unknown.

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Change of "Market-to-Market" Financial Accounting Rules

Maya MacGuineas — Mon, 17 Aug 2009 13:58:39 +0000

Date:

April 2, 2009

Who:

Other

Policy Area:

Financial Sector Policy

Economic Target:

Financial Institutions

Action Type:

Regulatory Change

Maximum Amount Special Symbol:

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

On April 2, 2009, the Financial Accounting Standards Board announced that it would relax fair-value (i.e., "market-to-market") accounting rules that obligated banks to value all assets at the current market price. New guidelines would give banks greater flexibility in how they value "distressed" assets.

Source:

FASB Meeting Report 4/2/2009

Notes:

Fiscal and budgetary impacts unknown.

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Capital Purchase Program

Maya MacGuineas — Mon, 20 Jul 2009 19:20:55 +0000

Capital Purchase Program

Policy Area:

Financial Sector Policy

Economic Target:

Financial Institutions

Action Type:

Equity Purchase

Maximum Amount:

204940000000

Amount Spent:

9712000000

Deficit Impact:

-17000000000

Purchase of equity shares of banks by the Department of Treasury, in order to promote lending and market liquidity under the “Capital Purchase Program” of the Troubled Assets Relief Program.

The Capital Purchase Program was the first of the programs implemented under TARP. Through the program, the Treasury will invest up to $250 billion of senior preferred shares in U.S. banks, savings associations, and certain bank and loan holding companies. The maximum amount available for each financial institution is $25 billion or 3 percent of risk-weighted assets, with a mimumum subscription amount of 1 percent of risk-weighted assets. In the program's announcement, the Treasury stated that "companies participating in the program must adopt the Treasury Department's standards for executive compensation and corporate governance," applying to the CEO, CFO, and the next three highly compensated executive officers.

Hundreds of financial instutitions, including the country's largest banks, have participated in the program.

Source:

Troubled Asset Relief Program

Treasury Release 10/14/2008

Notes:

Original Treasury statements indicate that the maximum amount for CPP is $250 billion. However, in the report Special Inspector General on TARP report (http://www.sigtarp.gov/reports.shtml) the maximum was listed as $218 billion, although the Treasury could be authorized to spend up to $250 billion through the program. Since then, the Treasury has listed the maximum amount as $205 billion in its report on TARP (http://www.financialstability.gov/latest/reportsanddocs.html). Amount spent indicates loans and purchases minus loan repayments (but not dividends), as of 8/22/2012 (http://www.financialstability.gov/latest/index.html). Deficit impact based on CBO's estimate of CPP's cost as stated in their March 2011 Report on TARP.

Deficit impact is from CBO's March 2011 Report on TARP. Deficit impact for individual banks is either derived from CBO's subsidy rate for the Capital Purchase Program (-4%), as listed in CBO's January 2010 baseline or the amount of dispositions received if the bank has repaid Treasury in full.

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Pension Relief

suggp — Fri, 10 Jul 2009 20:01:28 +0000

Date:

December 23, 2008

Who:

IRS

Policy Area:

Financial Sector Policy

Economic Target:

Consumers

Action Type:

Regulatory Change

Maximum Amount:

2509000000

Amount Spent:

Deficit Impact:

2509000000

The Worker, Retiree, and Employer Recovery Act waives rules requiring individuals to make an annual withdrawal from their retirement accounts for one year, and reduces funding requirements for certain defined pension benefits.

Source:

Worker, Retiree, and Employer Recovery Act of 2008

Notes:

Max Amount and Deficit Impact represent ten year numbers. Program makes money is year one due to timing shift.

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FDIC Bank Takeovers in 2008

Maya MacGuineas — Fri, 10 Jul 2009 19:57:53 +0000

Bank Takeovers in 2008

Policy Area:

Financial Sector Policy

Economic Target:

Depository Institutions

Action Type:

Bank Takeover

Maximum Amount:

234000000000

Amount Spent:

21740000000

Deficit Impact:

21740000000

FDIC takeovers of banks in 2008.

Source:

Federal Deposit Insurance Corporation 2008 Bank Failure List

Notes:

Although FDIC costs are counted on-budget, they should eventually be offset by proceeds from the sale of liquidated assets and higher premiums for deposit insurance. Maximum amount represents total value of deposits. Amount spent represents FDIC-estimated cost to deposit insurance fund.

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FDIC Bank Takeovers in 2009

Maya MacGuineas — Fri, 10 Jul 2009 19:55:57 +0000

Bank Takeovers in 2009

Policy Area:

Financial Sector Policy

Economic Target:

Depository Institutions

Action Type:

Bank Takeover

Maximum Amount:

125719900000

Amount Spent:

36465000000

Deficit Impact:

36465000000

FDIC takeovers of banks in 2009.

Source:

Federal Deposit Insurance Corporation 2009 Bank Failure List

Notes:

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Term Auction Facility

Maya MacGuineas — Fri, 10 Jul 2009 19:53:37 +0000

Term Auction Facility

Date:

December 12, 2007

Policy Area:

Financial Sector Policy

Economic Target:

Financial Institutions

Action Type:

Loans

Maximum Amount:

300000000000

Amount Spent:

The Term Auction Facility (TAF) allows banks and other financial institutions to pledge collateral in exchange for a loan from the Federal Reserve in order to alleviate liquidity pressures in short-term funding markets. The interest rate on the loan is determined by auction; such auctions are conducted biweekly for loans with a maturity of either 28 or 84 days.

On 5/2/2008 a Fed release increaed the maximum size of all auctions from $50 billion to $75 billion. A maximum of $150 billion could then be lent.

On 9/29/2008 a Fed release increased the maximum credit available in the 24-day and 84-day auction cycles to $300 billion.

On 10/7/2008 a Fed release established a third and fourth auction of three-month funding and increased the maximum size of each auction to $150 billion. A maximum of $600 billion could then be lent out.

On 6/25/2009 a Fed release reduced the maximum size of each auction from $150 billion to $125 billion each. A maximum of $500 billion could then be lent.

On 7/24/2009 a Fed release lowered the maximum size of each auction to $100 billion, although accepted bids for most recent auctions have been considerably smaller. A maximum of $400 billion could then be lent.

On 8/28/2009 a Fed release lowered the maximum size of each auction from $100 to $75 billion. A maximum of $300 can now be lent through the facility.

Source:

Federal Reserve TAF Announcements

Notes:

Amount spent indicates outstanding Term Auction Loans as of 5/10/2010 (http://www.federalreserve.gov/releases/h41/Current/). Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.

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Term Repurchase Transactions

Maya MacGuineas — Fri, 10 Jul 2009 19:49:58 +0000

Term Repurchase Transactions

Date:

March 7, 2008

Policy Area:

Financial Sector Policy

Economic Target:

Financial Institutions

Action Type:

Loans

Maximum Amount:

100000000000

Maximum Amount Special Symbol:

Amount Spent:

Program allows primary dealers (i.e., banks or securities firms that trade directly with the Federal Reserve) to trade securities in exchange for a 28-day cash loan from Federal Reserve. The primary dealer gives the Federal Reserve a security and receives a cash loan, and also agrees to buy back the security in 28 days for a fixed price.

Source:

Federal Reserve March 7 Statement

Notes:

Amount spent current as of 4/13/2010 (http://www.federalreserve.gov/releases/h41/Current/). Total purchases were "expected to cumulate" at $100 billion, but in fact reached over this amount at their peak. Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.

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Term Securities Lending Facility

Maya MacGuineas — Fri, 10 Jul 2009 19:48:58 +0000

Term Securities Lending Facility

Date:

March 11, 2008

Policy Area:

Financial Sector Policy

Economic Target:

Financial Institutions

Action Type:

Loans

Maximum Amount:

75000000000

Amount Spent:

Lending entity created by the Federal Reserve to promote liquidity for primary dealers in the financing markets for Treasury and other collateral. A primary dealer is a bank or securities firm that trades directly with the Federal Reserve. Loans given are for a 28-day period. Initially, the maximum lending allowed through the facility was $200 billion.

However, in a Fed press release on 6/25/2009, the Fed reduced the maximum loan amount available through the facility to $75 billion due to weak demand in recent months.

As has been previously announced, the Fed closed this program on February 1, 2010, along with three other Fed lending facilities that were created in response to the economic and financial crisis: Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, Commercial Paper Funding Facility, and the Primary Dealer Credit Facility.

Source:

Federal Reserve Release 3/11/2008

Federal Reserve Release 6/25/2009

Fed Release 2/1/2010

Notes:

Amount spent indicates loans extended as of 6/9/2010 (http://www.federalreserve.gov/releases/h41/Current/). Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.

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Bear Stearns Funding

Maya MacGuineas — Fri, 10 Jul 2009 19:48:07 +0000

Bear Stearns

Date:

March 14, 2008

Policy Area:

Financial Sector Policy

Economic Target:

Financial Institutions

Action Type:

Loans

Maximum Amount:

29000000000

Amount Spent:

1417000000

To prevent further market disorder in the wake of Bear Stearn's collapse, the Fed issued $29 billion in non-recourse loans to a holding company ("Maiden Lane, LLC") set up by J.P Morgan to manage and gradually liquidate Bear Stearns' assets.

Source:

Federal Reserve March 4 Release

Notes:

Amount spent indicates loan extended as of 1/16/2013 (http://www.federalreserve.gov/releases/h41/Current/). The $29 billion in loans to Bear Stearns in 2008 is only worth $26 billion in 2009 dollars, which is how the Fed reports it on its balance sheet. Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.

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Primary Dealer Credit Facility

Maya MacGuineas — Fri, 10 Jul 2009 19:46:21 +0000

Primary Dealer Credit Facility

Date:

July 20, 2008

Policy Area:

Financial Sector Policy

Economic Target:

Financial Institutions

Action Type:

Loans

Maximum Amount:

134066000000

Amount Spent:

Overnight lending program allows primary dealers to use collateral to borrow at the Federal Reserve's "discount window." A primary dealer is a bank or securities firm that trades directly with the Federal Reserve. This lending facility gives primary dealers greater capacity to provide financing in securities markets.

On August 17, 2007, the Federal Reserve increased the maximum maturity of primary credit loans to 30 days, citing a slight deterioration in financial market conditions.

On March 16, 2008, the Federal Reserve further increased the maximum maturity to 90 days.

On November 17, 2009, the Federal reduces the maximum maturity from 90 to 28 days, noting improvements in financial markets.

Source:

Federal Reserve March 16 Release

Federal Reserve November 17 Release

Fed Release 2/1/2010

Notes:

Maximum amount is the peak cumulative cost of the facility, which occurred on October 8, 2008. Amount spent indicates outstanding loans as of 6/9/2010 (http://www.federalreserve.gov/releases/h41/Current/). Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.

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