Yesterday, the Federal Reserve released its annual comparative financial statements for the year ended December 31, 2009, showing $53.4 billion of comprehensive income and a $47.4 billion transfer to the U.S. Treasury. The financial statements provide information for the combined Federal Reserve Banks, the 12 individual Federal Reserve Banks, the limited liability companies (LLCs) that were created to respond to strains in financial markets, and the Board of Governors.
The $53.4 billion in income for 2009 represents a $17.4 billion increase over comprehensive income reported for 2008. The increase was primarily due to interest earnings on holdings of Federal agency and government-sponsored enterprise (GSE) mortgage-backed securities (MBS), which were purchased to provide support to mortgage and housing markets and to foster improved conditions in the financial markets. The $5.6 billion of 2009 net earnings of the consolidated LLCs also contributed to the increase in comprehensive income over that reported for 2008.
In addition to balances, income and expenses, the annual financial statements also provide information about the assets held by each of the consolidated LLCs as well as summaries of the associated credit and market risk for each significant holding.