The Federal Reserve Closed 2009 With Record Profits

The federal reserve closed 2009 with record profits, $46100 million, that the central bank will refund to the treasure.

According the Washington Post , this is the highest profit obtained by the federal reserve in their 96 years of history. The entity presided by Ben Bernanke, surpassed the analyst’s forecasts from the Bank of America, Goldman Sachs and JP Morgan, and has made it thanks to the aggressive bond purchases last year. His previous record was of $34.600 million in 2007.

At the end of 2009, the Federal Reserve was controlling $1800 billion in debt from the US Government. This figure surpasses widely the $497000 million of 2008.

Although closing 2009 with record profits, Diane Swonk, chief economist from Mesirow Financial, warned that these results expose the Federal Reserve to higher risks, “they have elevated the risks curve, given that they have longer therm assets and more issues related with credit risk”,pointed.

So, the Federal Reserve could lose money if the price of Treasure Bonds or these values related with mortgages from Fannie Mae and Freddie Mac decrease during upcoming years and the executives from the Federal Reserve opted for drain liquidity from the system with the sale of assets.

On the other side, the president of the Federal Reserve, Ben Bernanke, obtained a slight improvement in his income for 2010 and his salary will be up to $199.700 without Bonuses.

Related posts:

1. The Job of Ben Bernanke in the Federal Reserve is in Danger
2. Ben Bernanke will Continue in the Federal Reserve
3. The Falcon of the Federal Reserve Warned that Interest Rates Should be Higher
4. Bernanke said that the Federal Reserve will not raise the interest rates
5. The Federal Reserve is worried about the inflation, the unemployment and the withdrawal of the emergency packages