The Most Profitable Bank in the World: The Fed

I'd like to know how much of that is interest on the Treasurys that we, the people of the United States, have "sold" to the Federal Reserve. My left hand is getting sore just looking at this.

Commence to congratulating the diabolical pricks at the Fed for figuring out how to turn the largest bank profit in the history of evil banking cabals:

The Federal Reserve reported on Monday its earnings jumped by more than 50 percent in 2010 to a record $80.9 billion on its massive holdings of securities, and it is turning the bulk of it over to the U.S. Treasury Department.

The $78.4 billion that the Fed is remitting to Treasury is also a record and is $31 billion more than a year earlier. In 2009 the Fed had net income of $53.4 billion.

The Fed's portfolio has ballooned to $2.16 trillion, roughly triple its size before the financial crisis, as it purchased securities including U.S. government debt and mortgage-linked bonds in a move to drive down borrowing costs and stimulate the economy.

"The increase was due primarily to increased interest income earned on securities holdings during 2010," the U.S. central bank said in releasing preliminary unaudited results. Audited results will be issued in the spring and may show some changes, Fed officials indicated. [my emphasis]

"Audited results" - using the financial accounting manual the Fed provides to auditors. It goes without saying that those statements may contain some departures from GAAP.

I remind dear reader that Western Union can claim massive profits when it loan sharks poor people with its 435% APY pay day loans too. Just sayin.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


I commented on Zimbabwe Ben's 2008 financials previously. They are a work of fiction. That Deloitte can "audit" them is a professional disgrace. Any idiot can run the Fed and "make a profit". If your interest cost is zero, what's so difficult?
Oh, any idiot is running the Fed.
Happy New Year.


Hal (GT) said...

Check out this: Former Atlanta FED President: The FED is Bankrupt.

Nice explanation of the book juggling.

chairmanben said...

Imagine my BONUS working for Goldman!


Scoremore said...

Obama will be collecting taxes and receiving a little extra off the top. Politics is about money.