The U.S. central bank made a record profit in 2009 due to earnings it accrued through emergency measures aimed at saving the economy from crisis. In a preliminary report released on Tuesday, the U.S. Federal Reserve said it will turn over forty six point one billion dollars to the federal government. That money comes from income the central bank received mostly from its investments in U.S. Treasury bonds and mortgage-related securities. The Federal Reserve also made money from loans to banks and other firms. In addition to the central bank's efforts, the Treasury Department set up a seven hundred billion dollers programme, known as TARP to assist troubled financial firms. A White House official says the Obama administration is now considering charging banks a fee in order to recoup an estimated one hundred twenty billion dollars it expects to lose from the programme. It is not clear what type of fee the administration is considering.
News On AIR | January 13, 2010 12:43 PM
U.S. central bank made a record profit in 2009