Federal Reserve Turns a Profit , Ignore the Man Behind the Curtain

wizardbehindcurtain.jpegWho says the Federal Reserve isn't good for something? They just made $80.9 billion dollars in 2010.

The Federal Reserve Board on Monday announced preliminary unaudited results indicating that the Reserve Banks provided for payments of approximately $78.4 billion of their estimated 2010 net income of $80.9 billion to the U.S. Treasury. This represents a $31.0 billion increase in payments to the U.S. Treasury over 2009 ($47.4 billion of $53.4 billion of net income). The increase was due primarily to increased interest income earned on securities holdings during 2010.

On the other hand, what they made the money on are securities from Freddie Mac and Fannie Mae, or GSEs, U.S. Treasuries and those infamous mortgage backed securities or toxic assets them purchased.

PIPP - Psssss!

Know that sound of a ball deflating right in the middle of your game? Oops, it's time out on PPIP, Geithner's toxic asset plan.

The Financial Times reports the U.S. Treasury's plan to sell toxic assets, PPIP, is in trouble:

The controversial US toxic asset clean-up plan, aimed at clearing bad loans from US banks’ books to enable them to raise capital and lend freely, has fallen behind schedule, and may never be fully implemented.

The plan has fallen prey to concerns from potential investors and regulators and waning interest from the banks themselves. Investors fear that Congress may set caps on pay while regulators are beginning to doubt whether the plan is really necessary.

Federal Reserve Update Report Document on Lending Activities (EESA)

Attached as a file is an update from the Federal Reserve of activities on extraordinary lending.

Due to travel and being out of town, I have not reviewed this report in detail, which is the reason this report is posted in an Instapopulist. I know our writers and readers will pour all over this and write up a blog post or at least comment with their insights.

The Board of Governors of the Federal Reserve System (the “Board”) is providing the following updates concerning the lending facilities established by the Board under section 13(3) of the Federal Reserve Act (12 U.S.C. § 343). This
report is the third periodic report filed by the Board pursuant to section 129(b) of the Emergency Economic Stabilization Act of 2008 (“EESA”) and provides an
update concerning all of the loans and lending facilities authorized by the Board under section 13(3) since March 1, 2008, that are outstanding. These facilities are

William Black on Bill Moyers Journal drops bailout bomb on Obama

This evening, Bill Moyers interviewed William K. Black, the former senior regulator during the savings and loan crisis of the 1980s, who blew the whistle on the Keating Five (the U.S. Senators implicated in taking “gifts” from S&L bankster Charles Keating was convicted of racketeering and fraud in both state and federal court after his Lincoln Savings & Loan). Black is now an Associate Professor of Economics and Law at the University of Missouri, and the author of the recently released book, The Best Way to Rob a Bank is to Own One.