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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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Press Release
January 10, 2012

Reserve Bank income and expense data and
transfers to the Treasury for 2011
For immediate release
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The Federal Reserve Board on Tuesday announced preliminary
unaudited results indicating that the Reserve Banks provided for
payments of approximately $76.9 billion of their estimated 2011 net
income to the U.S. Treasury. 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' 2011 estimated net income of $78.9 billion
was derived primarily from $83.6 billion in interest income on securities
acquired through open market operations (U.S. Treasury securities,
federal agency and government-sponsored enterprise (GSE) mortgagebacked securities, and GSE debt securities). Additional earnings were
derived primarily from realized gains on the sale of U.S. Treasury
securities of $2.3 billion, foreign currency gains of $152 million, and
income from services of $479 million. The Reserve Banks had interest
expense of $3.8 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 $3.4 billion in 2011. In addition, the
Reserve Banks were assessed $1.1 billion for the cost of new currency
and Board expenditures and $282 million to fund the operations of the

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Bureau of Consumer Financial Protection and Office of Financial
Research. In 2011, statutory dividends totaled $1.6 billion and $375
million of net income was used to equate surplus to capital paid-in.
The preliminary unaudited results include valuation adjustments as of
September 30 for Term Asset–Backed Loan Facility (TALF) loans and
consolidated limited liability companies, which were created in response
to the financial crisis. 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.
The attached chart illustrates the amount of Federal Reserve Banks'
residual earnings distributed to the U.S. Treasury from 2002 through
2011 (estimated).
For media inquiries, call 202-452-2955.

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Last Update: January 10, 2012

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