[Appendix]
[Financing Vehicles and the Board of Governors of the Federal Reserve]
[From the U.S. Government Printing Office, www.gpo.gov]



   
      
      
         FINANCING VEHICLES AND THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE                                                     
            
         
      
      
   
   
      FINANCING VEHICLES AND THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE                                                     
         
      
      
      
         This chapter contains descriptions of and data on financing vehicles and the Board of Governors of the Federal Reserve.  The
            Financing Corporation functions as a financing vehicle for the Federal Savings and Loan Insurance Corporation (FSLIC) Resolution
            Fund.  The Resolution Funding Corporation provided financing for the Resolution Trust Corporation (RTC) and is subject to
            the general oversight and direction of the Secretary of the Treasury.
         
         The Board of Governors of the Federal Reserve System's transactions are not included in the Budget because of its unique status
            in the conduct of monetary policy. The Board provides data on its administrative budget, which is included here for information.
            Its budget schedules and statements are not subject to review by the President.
         
         Amounts are on a calendar year basis, with the exception of the 2010 balance sheets for the Financing Corporation and Resolution
            Funding Corporation, which are as of September 30, 2010.
         
      
      Federal Funds
         Financing Corporation                                                                                                    
            
         
         The Financing Corporation (FICO) is a mixed-ownership Government corporation, chartered by the Federal Home Loan Bank Board
            pursuant to the Federal Savings and Loan Insurance Corporation Recapitalization Act of 1987, as amended (Act). FICO's sole
            purpose is to function as a financing vehicle for the FSLIC Resolution Fund, formerly the Federal Savings and Loan Insurance
            Corporation.  Pursuant to the Act, FICO was authorized to issue debentures, bonds, and other obligations subject to limitations
            contained in the Act, the net proceeds of which were to be used solely to purchase capital certificates issued by the FSLIC
            Resolution Fund, or to refund any previously issued obligations. The Resolution Trust Corporation Refinancing, Restructuring,
            and Improvement Act of 1991 terminated FICO's borrowing authority. 
         
         The Act provided formulas pursuant to which the Federal Home Loan Banks make capital contributions to FICO. FICO used the
            proceeds received from the sales of such capital stock to purchase non-interest bearing securities for deposit in a segregated
            account as required by the Act. The non-interest bearing securities held in the segregated account are the primary source
            of repayment of the principal of FICO obligations. Securities in the segregated account are kept separate from other FICO
            accounts and funds, but are not specifically pledged as collateral for the payment of obligations. The primary source of payment
            of interest on the obligations is the receipt of assessments imposed on and collected from institutions' accounts which are
            insured by the Federal Deposit Insurance Corporation's Deposit Insurance Fund. 
         
      
      Balance Sheet (in millions of dollars)
      
         
            
               
                  
                     
                  
               
               
                  Identification code 99â4033â0â3â373
                  2010 actual
                  2011 actual
               
               
                  
                     
                  
               
               
                  
                  ASSETS:
               
               
                  
                  Federal assets: Investments in US securities:
               
               
                  1102
                  Segregated accounts investment, net
                  4,562
                  4,863
               
               
                  
                  Other Federal assets:
               
               
                  1801
                  Cash, cash equivalents
                  207
                  288
               
               
                  1901
                  Other assets
                  9
                  8
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  1999
                  Total assets
                  4,778
                  5,159
               
               
                  
                  LIABILITIES:
               
               
                  
                  Non-Federal liabilities:
               
               
                  2202
                  Interest payable
                  156
                  236
               
               
                  2203
                  Debt
                  8,149
                  8,150
               
               
                  2207
                  Other
                  80
                  80
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  2999
                  Total liabilities
                  8,385
                  8,466
               
               
                  
                  NET POSITION:
               
               
                  3100
                  FICO capital stock purchased by FHLBanks
                  680
                  680
               
               
                  3300
                  Cumulative results of operations
                  3,883
                  4,183
               
               
                  3300
                  FSLIC capital certificates
                  â8,170
                  â8,170
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  3999
                  Total net position
                  â3,607
                  â3,307
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  4999
                  Total liabilities and net position
                  4,778
                  5,159
               
               
                  
                     
                  
               
            
         
      
         Resolution Funding Corporation                                                                                           
            
         
         The Resolution Funding Corporation (REFCORP) is a mixed-ownership Government corporation established by Title V of the Financial
            Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The sole purpose of REFCORP was to provide financing
            for the Resolution Trust Corporation (RTC). Pursuant to FIRREA, REFCORP was authorized to issue debentures, bonds, and other
            obligations, subject to limitations contained in the Act and regulations established by the Thrift Depositor Protection Oversight
            Board. The proceeds of the debt (less any discount, plus any premium, net of issuance cost) were used solely to purchase nonredeemable
            capital certificates of RTC or to refund any previously issued obligations.
         
         Until October 29, 1998, REFCORP was subject to the general oversight and direction of the Thrift Depositor Protection Oversight
            Board. At that time, the Oversight Board was abolished and its authority and duties were transferred to the Secretary of the
            Treasury. The day-to-day operations of REFCORP are under the management of a three-member Directorate comprised of the Director
            of the Office of Finance of the Federal Home Loan Banks and two members selected from among the presidents of the 12 Federal
            Home Loan Banks (FHLBanks). Members of the Directorate serve without compensation, and REFCORP is not permitted to have any
            paid employees. 
         
         FIRREA, as amended, and the regulations adopted by the Thrift Depositor Protection Oversight Board and the Secretary of the
            Treasury required that Federal Home Loan Banks (FHLBs) contribute 20 percent of net earnings annually to assist in the payment
            of interest on bonds issued by REFCORP until such time as the total payments are equivalent to a $300 million annual annuity
            with a final maturity date of April 15, 2030. The FHLBs fulfilled this obligation on August 5, 2011.  
         
      
      Balance Sheet (in millions of dollars)
      
         
            
               
                  
                     
                  
               
               
                  Identification code 99â4029â0â3â373
                  2010 actual
                  2011 actual
               
               
                  
                     
                  
               
               
                  
                  ASSETS:
               
               
                  
                  Federal assets: Investments in US securities:
               
               
                  1102
                  Principal fund account investment, net
                  11,691
                  12,391
               
               
                  1206
                  Non-Federal assets: Assessments receivable for interest expense
                  886
                  888
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  1999
                  Total assets
                  12,577
                  13,279
               
               
                  
                  LIABILITIES:
               
               
                  
                  Non-Federal liabilities:
               
               
                  2202
                  Accrued interest payable on long-term obligations
                  886
                  888
               
               
                  2203
                  Debt
                  30,073
                  30,071
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  2999
                  Total liabilities
                  30,959
                  30,959
               
               
                  
                  NET POSITION:
               
               
                  3100
                  Nonvoting capital stock issued to FHLBanks
                  2,513
                  2,513
               
               
                  3300
                  Cumulative results of operations
                  9,335
                  10,037
               
               
                  3300
                  RTC nonredeemable capital certificates
                  â31,286
                  â31,286
               
               
                  3300
                  Contributed capital - principal fund assessments
                  1,056
                  1,056
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  3999
                  Total net position
                  â18,382
                  â17,680
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  4999
                  Total liabilities and net position
                  12,577
                  13,279
               
               
                  
                     
                  
               
            
         
      
         Board of Governors of the Federal Reserve System                                                                         
            
         Program and Financing (in millions of dollars)
      
         
            
               
                  
                     
                  
               
               
                  Identification code 99â4450â0â3â803
                  2010 actual
                  2011 est.
                  2012 est.
               
               
                  
                     
                  
               
               
                  
                  Obligations by program activity:
               
               
                  0801
                  Monetary and economic policy
                  92
                  107
                  114
               
               
                  0802
                  Federal Reserve System policy direction
                  35
                  39
                  34
               
               
                  0803
                  Supervisory, regulatory, and legal services
                  141
                  157
                  169
               
               
                  0804
                  Support and security services
                  148
                  173
                  194
               
               
                  0805
                  Extraordinary items
                  11
                  1
                  1
               
               
                  
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
               
               
                  0809
                  Reimbursable program activities, subtotal
                  427
                  477
                  512
               
               
                  0810
                  Office of Inspector General operating expenses
                  11
                  18
                  21
               
               
                  
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
               
               
                  0900
                  Total new obligations
                  438
                  495
                  533
               
               
                  
                     
                  
               
               
                  
                  Budgetary Resources:
               
               
                  
                  Financing authority:
               
               
                  
                  Spending authority from offsetting collections, mandatory:
               
               
                  1800
                  Collected
                  438
                  495
                  533
               
               
                  
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
               
               
                  1850
                  Spending auth from offsetting collections, mand (total)
                  438
                  495
                  533
               
               
                  1930
                  Total budgetary resources available
                  438
                  495
                  533
               
               
                  
                     
                  
               
               
                  
                  Change in obligated balance:
               
               
                  3030
                  Obligations incurred, unexpired accounts
                  438
                  495
                  533
               
               
                  3040
                  Financing disbursements (gross)
                  â438
                  â495
                  â533
               
               
                  
                     
                  
               
               
                  
                  Financing authority and disbursements, net:
               
               
                  
                  Mandatory:
               
               
                  4090
                  Financing authority, gross
                  438
                  495
                  533
               
               
                  
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
               
               
                  4110
                  Financing disbursements, gross
                  438
                  495
                  533
               
               
                  
                  Offsets against gross financing authority and disbursements:
               
               
                  
                  Offsetting collections (collected) from:
               
               
                  4123
                  Non-Federal sources
                  â438
                  â495
                  â533
               
               
                  
                     
                  
               
            
         
      
      
         The Federal Reserve System operates under the provisions of the Federal Reserve Act of 1913, as amended, and other acts of
            the Congress.
         
         To carry out its responsibilities under this Act, the Board determines general monetary, credit, and operating policies for
            the System as a whole and formulates the rules and regulations necessary to carry out the purposes of the Federal Reserve
            Act. The Board's principal duties consist of exerting an influence over credit conditions and supervising the Federal Reserve
            banks and member banks.
         
         Under the provisions of section 10 of the Federal Reserve Act, the Board of Governors levies upon the Federal Reserve banks,
            in proportion to their capital and surplus, an assessment sufficient to pay its estimated expenses. The Board, under this
            Act, determines and prescribes the manner in which its obligations are incurred and its expenses paid. Funds derived from
            assessments are deposited in the Federal Reserve Bank of Richmond, and this Act provides that such funds "not be construed
            to be Government funds or appropriated moneys.'' No Government appropriation is required to support operations of the Board.
         
         The information presented pertains to Board operations only. Expenditures made on behalf of the Federal Reserve banks for
            production, issuance, retirement, and shipment of Federal Reserve notes are not included, since they are reimbursed in full
            by the Federal Reserve banks.
         
      
      Object Classification (in millions of dollars)
      
         
            
               
                  
                     
                  
               
               
                  Identification code 99â4450â0â3â803
                  2010 actual
                  2011 est.
                  2012 est.
               
               
                  
                     
                  
               
               
                  
                  Reimbursable obligations:
               
               
                  
                  Personnel compensation:
               
               
                  11.1
                  Full-time permanent
                  264
                  288
                  302
               
               
                  11.3
                  Other than full-time permanent
                  3
                  3
                  3
               
               
                  11.5
                  Other personnel compensation
                  2
                  2
                  2
               
               
                  
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
               
               
                  11.9
                  Total personnel compensation
                  269
                  293
                  307
               
               
                  12.1
                  Civilian personnel benefits
                  53
                  60
                  59
               
               
                  13.0
                  Benefits for former personnel
                  4
                  7
                  7
               
               
                  21.0
                  Travel and transportation of persons
                  11
                  14
                  14
               
               
                  22.0
                  Transportation of things
                  
                  1
                  1
               
               
                  23.3
                  Communications, utilities, and miscellaneous charges
                  9
                  9
                  12
               
               
                  24.0
                  Printing and reproduction
                  2
                  3
                  3
               
               
                  25.1
                  Advisory and assistance services
                  52
                  52
                  61
               
               
                  25.2
                  Other services from non-Federal sources
                  13
                  17
                  23
               
               
                  26.0
                  Supplies and materials
                  10
                  14
                  15
               
               
                  31.0
                  Equipment
                  15
                  25
                  31
               
               
                  
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
               
               
                  99.9
                  Total new obligations
                  438
                  495
                  533