<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>August 31, 2009, 10.02 am (Singapore time)
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Federal Reserve made US$14b on turmoil loans: FT
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LONDON - The Federal Reserve has made US$14 billion in profits on loans made in the last two years, The Financial Times reported on Monday, citing officials close to the matter.
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</TD></TR><TR class=caption><TD>The US central bank also earned about US$19 billion from interest and fees charged to institutions that tapped liquidity facilities during the global financial crisis</TD></TR></TBODY></TABLE>The US central bank also earned about US$19 billion from interest and fees charged to institutions that tapped liquidity facilities during the global financial crisis, the report said.
If the Fed had invested the same amount loaned out in three-month Treasury bills since August 2007, it would have earned US$5 billion in interest, the FT said.
This estimate excludes company bailouts and purchases of long-term assets as well as unrealised gains or losses on the Fed's portfolio of mortgage-backed securities and Treasuries purchased as part of the US$1.75 trillion asset purchase programme.
The Fed was not immediately available for comment on the report. -- REUTERS
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Federal Reserve made US$14b on turmoil loans: FT
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>LONDON - The Federal Reserve has made US$14 billion in profits on loans made in the last two years, The Financial Times reported on Monday, citing officials close to the matter.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>The US central bank also earned about US$19 billion from interest and fees charged to institutions that tapped liquidity facilities during the global financial crisis</TD></TR></TBODY></TABLE>The US central bank also earned about US$19 billion from interest and fees charged to institutions that tapped liquidity facilities during the global financial crisis, the report said. If the Fed had invested the same amount loaned out in three-month Treasury bills since August 2007, it would have earned US$5 billion in interest, the FT said.
This estimate excludes company bailouts and purchases of long-term assets as well as unrealised gains or losses on the Fed's portfolio of mortgage-backed securities and Treasuries purchased as part of the US$1.75 trillion asset purchase programme.
The Fed was not immediately available for comment on the report. -- REUTERS
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