Save and earn money

U.S. Republicans and Democrats together. However, so far only in their desire to learn more "from life" the Federal Reserve. Republican congressman from Texas Ron Paul in support of the head of the Financial Services Committee, Barney Frank is promoting a bill that would allow Government Accountability Office (GAO) - «State Auditor" from Congress - to conduct a full audit of the Fed. Now GAO has the right to examine the operation Fed only in the areas of banking regulation and consumer protection, without the right to audit the monetary policy. But congressmen are concerned how it uses taxpayers' money allocated to assist the U.S. financial system during the current crisis. This fueled the curiosity of the Federal Reserve itself, to publish information on the profits earned by him on saved from the collapse of financial institutions.

Privileges lender programs on liquidity injections into the financial system operating in the past two years, the Fed made a profit of $ 14 billion of total central bank earned about $ 19 billion is interest income and fees from financial institutions and investors who are jewels from the Federal Reserve money to save his business. But if the central bank issued by these companies invested an amount of treasury bonds, its revenues amounted to about $ 5 billion in other words, $ 14 billion - is the "excess", which the Central Bank has earned through the crisis.

However, initially at no profit no one expected. When, in October 2008, the U.S. Treasury started to spend $ 240 billion to buy preferred stock in hundreds of different banks, taxpayers were promised that the returns on these investments will be small - 5% of quarterly dividends on preferred shares plus the right to purchase securities of banks at a fixed price in 10 years (warrants). Thus, the actually profit exceeded all expectations. Only eight banks that have repaid their obligations to the state, received about $ 4 billion, which, according to calculations The New York Times, corresponds to the profitability of 15%.

In particular, the most "double cream" the U.S. government was removed from Goldman Sachs ($ 1,4 billion), Morgan Stanley ($ 1,3 billion) and American Express ($ 414 million). Even at $ 100 million to $ 334 million brought the Federal Reserve banks Northern Trust, Bank of New York Mellon, State Street, US Bancorp and BB & T. The Fed does not disclose details. Thus the main profit was formed not by interest, but due to the fact that banks bought from the state their warrants.

However, all these data on profits - the central bank's staff calculations, in which an audit under this part has not been conducted. Outside control GAO remained, thus, all the mechanisms by which the Fed provided liquidity. Namely - loans to banks, currency swaps with foreign central banks, the purchase of commercial paper and funding of investors in securities backed by assets.

Moreover, these figures are not final and does not reflect the general state of the central bank's balance sheet. First, they do not take into account the amount of Federal Reserve purchases of long-term assets. Secondly, the Fed is still threatened by huge losses because of the saved objects of investment. In part because of the insurance giant AIG and mortgage companies Fannie Mae and Freddie Mac.

Therefore, GAO wants to understand the monetary policy of the Federal Reserve, which is still a taboo territory for him, because it can be interpreted as interference in the policy of the Congress of the independent central bank of the country. As the head of the Federal Reserve, Ben Bernanke, explaining his attitude (of course, negative) to the bill, "the assumption that monetary policy has lost independence, could increase fears of future inflation, leading to higher long-term interest rates and reduce the economic and financial stability."

But no matter how the U.S. protested the chief banker, the bill purposefully making his way to the House of Representatives - before it is scheduled for October.

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