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Federal Reserve Bank of Dallas l l★K HELEN E. HOLCOMB DALLAS, TEXAS 75265-5906 FIRST VICE PRESIDENT AND CHIEF OPERATING OFFICER January 28, 1999 Notice 99-08 TO: The Chief Operating Officer of each financial institution and others concerned in the Eleventh Federal Reserve District SUBJECT Preliminary Figures on the Operating Income of Federal Reserve Banks DETAILS The Board of Governors of the Federal Reserve System has announced preliminary figures on the operating income of the Federal Reserve Banks during 1998. Federal Reserve System income is derived primarily from interest earned on U.S. government securities that the Federal Reserve has acquired through open market operations. ATTACHMENT A copy of the Board’s press release announcing the preliminary figures is attached. MORE INFORMATION For further information, please contact Claude Davis at (214) 922-5607. For additional copies of this Bank’s notice, please contact the Public Affairs Department at (214) 922-5254. Sincerely, For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810. Release Date: January 7, 1999 For immediate release Preliminary figures indicate that operating income of the Federal Reserve Banks amounted to $28.147 billion during 1998. Net income before payment of dividends, additions to surplus, and payments to the Treasury totaled $27.623 billion. About $26.549 billion of this net income was distributed to the U.S. Treasury during 1998. Federal Reserve System income is derived primarily from interest earned on U.S. government securities that the Federal Reserve has acquired through open market operations. Income from the provision of financial services amounted to $817.1 million. Operating expenses of the 12 Reserve Banks and branches totaled $1.785 billion. In addition, earnings credits in the amount of $347.5 million were granted to depository institutions under the Monetary Control Act of 1980. Assessments to Reserve Banks for Board expenditures totaled $178 million and the cost of currency amounted to $408.5 million. Net additions to income amounted to $1.915 billion, resulting primarily from unrealized gains on assets denominated in foreign currencies revalued to reflect current market exchange rates. Statutory dividends to member banks were $343 million. Under the policy established by the Board of Governors at the end of 1964, all net income after the statutory dividend to member banks and the amount necessary to equate surplus to paid-in capital is transferred to the U.S. Treasury. Home | General press releases Last update: January 7, 1999, 4:00 PM