It might be unbelievable for many, but the Federal Reserve Bank has actually succeeded in making profit from the financial crisis.
The Fed has had $14 billion as profits made on loans disbursed in the past two years, according to an internal estimate obtained by the Financial Times.
Special loan programs have brought in $19 billion
The paper reported, that as compared to the projected $5 billion that the Fed would have made from investing in Treasury bills, the special loan programs created as a result of the crisis have brought in $19 billion, leading to a $14 billion profit for the agency.
Central bank has also made about $4 billion from loans
The central bank has also made about $4 billion from loans made to large banks during the crisis, according to the New York Times.The paper cited returns from eight of the largest banks on the government’s bailout list, including Goldman Sachs, Morgan Stanley and American Express.
However, the estimates have not been sanctioned or confirmed by the Federal Reserve and the reports have to be published yet. The Fed hasn’t issued any comment on the report either.
Members of the Congress are calling for the Fed to allow itself to be audited. Although Bernanke has strongly opposed the politically motivated audits of the central bank, but Representative Ron Paul (R-Tex.) has proposed a federal audit by the Government Accountability Office, a move which he says Senator Barney Frank (D-Mass.) supports.
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