Federal Reserve to transfer $76.9 billion its profit to the U.S. Treasury Department

14 Jan

By Richard Walker, Gebo Equity Management Pty Ltd

The Federal Reserve has declared to hand over $76.9 billion of its earnings to the U.S. treasury department.

The earning sources of the Fed are interest obtained from its massive holdings in treasury debt, mortgage-backed securities from Fannie Mae and Freddie Mac, government debt securities, earnings of several billion dollars from the sale of treasury securities, and $152 million from foreign-currency trades.

The Federal Reserve has increased its earnings in recent years. Since 2008, its income is going up year by year. But this year its income has lowered a bit, as in 2010, it transferred $79.3 billion to the treasury department while in 2011; it went a bit down as the Fed would transfer $76.9 billion, stats Richard Walker, Gebo Equity Management Pty Ltd.

The Federal Reserve pulls its operation costs from its earnings and rest amount it submits to the treasury department. The Fed had set aside $3.4 billion for its expenses in 2011 and distributed $282 million to fund the Consumer Financial Protection Bureau and the Office of Financial Research, shares Richard Walker from Gebo Equity Management.

The Federal Reserve is doing quite good earnings for last many years. But this year its earnings have downed by $ 2.4 million though it is good, as per the view of economic analysts.

Richard Walker is the owner of Gebo Equity Management Pty Ltd., a boutique Corporate Advisory firm specialized in Corporate Advisory, Corporate Finance and Investor Relations. Mr. Richard Walker also holds the position of Director of 2 Up Gaming Plc and Chairmanship of Millhouse Inc. Plc and Streamark Limited. Mr. Richard Walker has specialization in listing companies on foreign stock exchanges.


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