Thursday, October 16, 2008

The Federal Reserve Balance Sheet

What has been termed "de-leveraging" of the financial system is really a leverage shuffle.....

==  Federal Reserve now holds $1.77 trillion in assets. This is double the tally of 1 year ago.

==  $42.34 in assets for $1 in capital. Wow. $24.64 per $1 a year ago.

==  $263 billion: Term auction credit

==  $441 billion: Other loans (this includes broker/dealer loans, the commercial paper liquidity program and the initial AIG loan)

==  $29.5 billion loan to JPM for the BSC acquisition is still on the books

==  $82.9 billion of the $85 billion loan to AIG has been tapped (listed under "other credit extensions" in the FRB H.4.1 release)

==  An additional $37.8 billion in collateralized loans has been made available to AIG (10/8/08 press release)

==  The U.S. Treasury has now supplied the Fed with $499 billion via the Supplementary Financing Program.  Please check the 10/8/08 post "Some Bullet Points" for Program details.

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