The Federal Reserve Bank generated $77.4 billion in net income during 2011, which was primarily derived from $83.6 billion in interest income on securities acquired through open market operations: U.S. Treasury securities, federal agency and government-sponsored enterprise (GSE) mortgage-backed securities (MBS), and GSE debt securities.
The Federal Reserve recorded $2.919 trillion in total assets as of Dec. 31, 2011, which represents an increase of $491 billion from the previous year. Holdings of Treasury securities increased by $683 billion, GSE debt securities holdings decreased by $45 billion, and federal agency and GSE MBS holdings decreased by $156 billion. The balances held under central bank liquidity swap arrangements increased by $99.7 billion.
Federal Reserve assets related to credit and liquidity programs decreased by $95.8 billion. The closing of the American International Group Inc. (AIG) recapitalization plan in January 2011 resulted in asset reductions of $47 billion, inclusive of the full repayment of the revolving line of credit with AIG in the amount of $20.6 billion and the redemption or sale of the Federal Reserve Bank of New York's preferred interests in two AIG-related limited liability companies in the amount of $26.4 billion.