Federal Reserve Profit: Fed hauls in record $45 Billion in 2009.

Federal Reserve Profit: Fed hauls in record $45 Billion in 2009.


WASHINGTON (JEANNINE AVERSA -- AP) -- The Federal Reserve says it made a record profit of $46.1 billion last year as the central bank made money off its extraordinary efforts to rescue the country from the worst economic and financial crisis since the 1930s.

The windfall gets turned over to the U.S. Treasury.

It marks the biggest profit on records dating back to 1914 when the Fed was created. The previous record profit - of $34.6 billion - was registered in 2007. In 2008, the Fed reported a profit of $31.7 billion.

The Fed says the increase was primarily due to increase earnings on securities it held last year.


http://www.huffingtonpost.com/2010/01/11/federal-reserve-profit-fe_n_419517.html

Oh that's right, the Federal Reserve isn't part of the US Government. Wonder who got to pocket that?

So, the Federal Reserve, accountable only to its member banks, was goosing the stock/bond/derivatives markets.

Of course, we're also taking their word for it that they did actually make $45 billion, since there isn't any independent means of verifying what they claim.

Frankly, I think that it stinks that the Federal Reserve can do this kind of manipulation -- a free, competitive market can only work honestly if there is transparency, if all the participants can know what is going on. If the Fed is out there 'pumping and dumping' then it calls into question the real value of all securities.

Doesn't it?

Or are we just going to hear about how smart Bernanke is for saving us from the consequences of the mega-banks fraud?