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Board of Governors of the Federal Reserve System
The Federal Reserve, the central bank of the United States, provides the nation with a
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Home > News & Events > Press Releases

Press Release
January 10, 2011

Reserve Bank income and expense data and
transfers to the Treasury for 2010
For immediate release
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The Federal Reserve Board on Monday announced preliminary
unaudited results indicating that the Reserve Banks provided for
payments of approximately $78.4 billion of their estimated 2010 net
income of $80.9 billion to the U.S. Treasury. This represents a $31.0
billion increase in payments to the U.S. Treasury over 2009 ($47.4
billion of $53.4 billion of net income). The increase was due primarily to
increased interest income earned on securities holdings during 2010.
Under the Board's policy, the residual earnings of each Federal Reserve
Bank, after providing for the costs of operations, payment of dividends,
and the amount necessary to equate surplus with capital paid-in, are
distributed to the U.S. Treasury.
The Federal Reserve Banks' 2010 net income was derived primarily
from $76.2 billion in income on securities acquired through open market
operations (federal agency and government-sponsored enterprise (GSE)
mortgage-backed securities, U.S. Treasury securities, and GSE debt
securities); $7.1 billion in net income from consolidated limited liability
companies (LLCs), which were created in response to the financial
crisis; $2.1 billion in interest income from credit extended to American
International Group, Inc.; $1.3 billion of dividends on preferred interests
in AIA Aurora LLC and ALICO Holdings LLC; and $0.8 billion in interest
income on loans extended under the Term Asset-Backed Securities
Loan Facility (TALF) and loans to depository institutions. Additional

earnings were derived primarily from revenue of $0.6 billion from the
provision of priced services to depository institutions. The Reserve
Banks had interest expense of $2.7 billion on depository institutions'
reserve balances and term deposits.
Operating expenses of the Reserve Banks, net of amounts reimbursed
by the U.S. Treasury and other entities for services the Reserve Banks
provided as fiscal agents, totaled $4.3 billion in 2010. The Reserve
Banks' operating expenses included assessments of $1.0 billion for
Board expenditures and the cost of new currency. In 2010, statutory
dividends totaled $1.6 billion and approximately $0.6 billion of net
income was used to equate surplus to paid-in capital.
The preliminary unaudited results include valuation adjustments as of
September 30 for TALF loans and consolidated LLCs. The final results,
which will be presented in the Reserve Banks' annual audited financial
statements and the Board of Governors' Annual Report, will reflect
valuation adjustments as of December 31.
Chart: 2001-2010 Federal Reserve Distributions to the U.S. Treasury
(41 KB PDF)

Last Update: January 10, 2011

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BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM
20th Street and Constitution Avenue N.W., Washington, DC 20551