Fed Transfers Record $79.3 Billion Income to U.S. Treasury for Last Year

By Scott Lanman –Bloomberg

The Federal Reserve said its payments to the U.S. Treasury rose 67 percent to a record $79.3 billion last year on income from mortgage securities purchased to spur economic growth.

The transfers, higher than initial Fed estimates, increased from $47.4 billion in 2009, according to annual financial statements released by the central bank today in Washington. The statements included a letter from auditors Deloitte & Touche LLP approving the numbers. The Fed in January reported an unaudited 2010 total of $78.4 billion in payments to Treasury.

Fed Chairman Ben S. Bernanke said in January that the payments could decrease if the Fed raises short-term interest rates because of a recovering economy. The Fed is buying $600 billion of Treasury securities through June in the second round of quantitative easing. It purchased $1.7 trillion of mortgage and Treasury debt from December 2008 to March 2010 in the first round to revive the economy with the benchmark interest rate near zero.

Operating expenses for the Fed and its 12 regional banks rose to $5.07 billion from $4.98 billion. That includes $1.05 billion for Board of Governors operating expenses and currency costs, up from $888 million in 2009; $33 million for the new Bureau of Consumer Financial Protection, which operates independently of the Fed; and $10 million for the Treasury’s new Office of Financial Research, the statement shows.

Both new organizations are funded through the Fed under last year’s Dodd-Frank financial-regulation law. The financial- research office will be funded by bank fees after the first two years.

appraisal services, appraisal management company, coester appraisal, fha minimum property standards, best appraisal management company, reverse mortgage appraisal companies


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: