Bailout Report

In an effort to increase transparency about the $1 Trillion (of $2.1 Trillion) it has added to it’s balance sheet since last September, the Fed committed to issuing a balance sheet performance report on the second Wednesday of each month.

In the first reports, the Fed indicated it netted $2.7 Billion in the first quarter, largely on gains from Term Auction Facility (TAF) loans and on its Commercial Paper Funding Facility; earned $4.6 Billion from Treasury bonds which it started purchashing in March; and lost $5.3 Billion on Bear Stearns and AIG collateral.

Federal Reserve Credit and Liquidity Programs and the Balance Sheet
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The Federal Reserve lends money to financial institutions through an ever growing number of different liquidity programs– thus far eleven in all, eight of which were created quite recently.

The following chart will help you navigate the new facilities that have joined the long-standing Ongoing Market Operations, Discount Window, and Securities Lending:

With the passage of the “Emergency Economic Stabilization Act of 2008″, the government led bailout is currently on track to cost over $1.8 Trillion, more than $17,000 per US household.

With an assist from Reuters.