Federal Reserve earned $45 billion in 2009

[Crabtownboy]

Are you surprised?

I'd say this part of the government is doing a pretty good job.

Wall Street firms aren't the only banks that had a banner year. The Federal Reserve made record profits in 2009, as its unconventional efforts to prop up the economy created a windfall for the government.

The Fed will return about $45 billion to the U.S. Treasury for 2009, according to calculations by The Washington Post based on public documents. That reflects the highest earnings in the 96-year history of the central bank. The Fed, unlike most government agencies, funds itself from its own operations and returns its profits to the Treasury.

The numbers are good news for the federal budget and a sign that the Fed has been successful, at least so far, in protecting taxpayers as it intervenes in the economy -- though there remains a risk of significant losses in the future if the Fed sells some of its investments or loses money on its stakes in bailed-out firms.

http://www.washingtonpost.com/wp-dyn/content/article/2010/01/11/AR2010011103892.html?hpid=topnews

 

[rbell]

In our area, local governments are flirting with "speeding cameras," and "red light cameras."

There's almost no talk about safety...but we're constantly reminded how much money it will bring in.

I'll concede that if the money is returned to the treasury (big "if" with regards to the future...or even if it's happening as we're told), then hey...at least that part of the government isn't bankrupting us.

But our government is so addicted to the crack cocaine of revenue...I fear the damage may have already been done.

I'm kind of partial to the quaint idea of "cutting back." Unfortunately, our D leaders, and almost all of our R ones, are not.

 

[Revmitchell]

I'm kind of partial to the quaint idea of "cutting back." Unfortunately, our D leaders, and almost all of our R ones, are not.

So is the constitution but then they do not really care about that.

 

[targus]

How long will it take for congress to spend this 45 billion that they have on paper?

And does this 45 billion even matter when put against the 68.5 billion loss for TARP for the fiscal year ended September 30, 2009?

Don't be fooled, Crabby. The government doesn't earn anything.

They just tax and spend.

 

[Johnv]

I'm all for govbenments bringing in revenue. But I don't favor governments spending said revenue just because they've got it to spend. I think we're all in agreement on that point.

 

[Aaron]

Guys, the Federal Reserve is not a branch of the federal government.

 

[billwald]

The point should be that quasi-government agencies can "earn" profits. <G>

 

[FR7 Baptist]

That's good. We should use that money to pay down the national debt.

 

[Johnv]

Guys, the Federal Reserve is not a branch of the federal government.

You're right, but did someone say they were?

 

[targus]

I wonder how much of those "earnings" were in the form of interest on Federal obligations such at bonds and bills?

That would be interest paid by the Federal government.

IOW - our tax money.

 

[Johnv]

There's a "Peter/Paul" joke in there somewhere, isn't there??