The Federal Reserve Made $52 Billion In 2009

January 12, 2010 by · 1 Comment
Filed under: Economic News 

The Federal Reserve reaped quite a nice reward for its rescue efforts during the financial crisis. According to its preliminary unaudited 2009 results, the central bank made a whopping $52.1 billion in profit. Somewhere, Ron Paul’s blood is boiling. But before populist outrage at these profits take hold, let’s consider a few things.

First, the vast, vast majority of these profits are going back to taxpayers — $46.1 billion. As the release says:

Under the Board’s policy, the Reserve Banks are required to transfer their net income to the U.S. Treasury after providing for the payment of statutory dividends to member banks and equating surplus to paid-in capital.

Those statutory dividends were $1.4 billion, while the surplus capital was $4.6 billion. Taxpayers get the rest.

So the first point is that taxpayers actually benefit from the Fed’s profits. A lot. They got 89% of its net income. As a taxpayer, I’m pretty happy about that.

Click Here to Continue Reading

Comments

One Response to “The Federal Reserve Made $52 Billion In 2009”
  1. Francisco Paine says:

    Audit the Fed, then
    END THE FED!

    -Francisco Paine

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!