Fed reports year-end figures

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Preliminary figures indicate that operating income of the Federal Reserve Banks amounted to $29.3 billion during 1999, according to a Jan. 6 release from the Fed.|ret||ret||tab|

Net income before payment of dividends, additions to surplus and payments to the Treasury totaled $26.3 billion. About $25.4 billion of this net income was distributed to the U.S. Treasury during 1999. |ret||ret||tab|

Federal Reserve System income is derived primarily from interest earned on U.S. government securities that the Federal Reserve has acquired through open market operations. Income from the provision of financial services amounted to $836 million. |ret||ret||tab|

Operating expenses of the 12 Reserve Banks totaled $1.9 billion. In addition, the cost of earnings credits granted to depository institutions under the Monetary Control Act of 1980 amounted to $322 million. Assessments against Reserve Banks for board expenditures totaled $214 million, and the cost of currency amounted to $485 million. |ret||ret||tab|

Net deductions from income amounted to $526 million, resulting primarily from unrealized losses on assets denominated in foreign currencies revalued to reflect current market exchange rates. Statutory dividends to member banks were $375 million. |ret||ret||tab|

Under the policy established by the board of governors at the end of 1964, all net income after the statutory dividend to member banks and the amount necessary to equate surplus to paid-in capital is transferred to the U.S. Treasury.|ret||ret||tab|

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