[Appendix]
[Financing Vehicles and the Board of Governors of the Federal Reserve]
[From the U.S. Government Publishing Office, www.gpo.gov]
<h1>FINANCING VEHICLES AND THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE
</h1>
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 System.
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 is not subject to review by the President and is executed and presented here on a calendar-year basis.
The 2014 balance sheets for the Financing Corporation and Resolution Funding Corporation are as of December 31, 2014, and
the 2015 balance sheets are as of September 30, 2015.
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 (the 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 920–4980–0–4–373
2014 actual
2015 actual
ASSETS:
Federal assets:
Investments in US securities:
1102
Segregated accounts investment, net
6,418
6,841
Other Federal assets:
1801
Cash, cash equivalents
210
294
1901
Other assets
5
4
1999
Total assets
6,633
7,139
LIABILITIES:
Non-Federal liabilities:
2202
Interest payable
157
236
2203
Debt
8,158
8,160
2207
Other
70
72
2999
Total liabilities
8,385
8,468
NET POSITION:
3100
FICO capital stock purchased by FHLBanks
680
680
3300
Cumulative results of operations
5,738
6,161
3300
FSLIC capital certificates
–8,170
–8,170
3999
Total net position
–1,752
–1,329
4999
Total liabilities and net position
6,633
7,139
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 composed of the Chief
Executive Officer of the Office of Finance of the Federal Home Loan Banks and two members selected from among the presidents
of the 11 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 920–4981–0–4–373
2014 actual
2015 actual
ASSETS:
Federal assets:
Investments in US securities:
1102
Principal fund account investment, net
15,966
16,924
1206
Non-Federal assets: Assessments receivable for interest expense
886
888
1999
Total assets
16,852
17,812
LIABILITIES:
Non-Federal liabilities:
2202
Accrued interest payable on long-term obligations
886
888
2203
Debt
30,065
30,064
2999
Total liabilities
30,951
30,952
NET POSITION:
3100
Nonvoting capital stock issued to FHLBanks
2,513
2,513
3300
Cumulative results of operations
13,618
14,577
3300
RTC nonredeemable capital certificates
–31,286
–31,286
3300
Contributed capital - principal fund assessments
1,056
1,056
3999
Total net position
–14,099
–13,140
4999
Total liabilities and net position
16,852
17,812
Board of Governors of the Federal Reserve System
Program and Financing (in millions of dollars)
Identification code 920–4982–0–4–803
2014 actual
2015 est.
2016 est.
Obligations by program activity:
0801
Monetary and economic policy
124
136
139
0802
Federal Reserve System policy direction
35
37
38
0803
Supervisory, regulatory, and legal services
198
215
219
0804
Support and security services
198
214
219
0805
Extraordinary items
9
26
40
0806
Below reporting threshold
2
1
0809
Reimbursable program activities, subtotal
566
629
655
0810
Office of Inspector General operating expenses
25
29
32
0900
Total new obligations
591
658
687
Budgetary resources:
Financing authority:
Spending authority from offsetting collections, mandatory:
1800
Collected
591
658
687
1930
Total budgetary resources available
591
658
687
Change in obligated balance:
Unpaid obligations:
3010
Obligations incurred, unexpired accounts
591
658
687
3020
Outlays (gross)
–591
–658
–687
Financing authority and disbursements, net:
Mandatory:
4090
Budget authority, gross
591
658
687
4110
Outlays, gross (total)
591
658
687
Offsets against gross financing authority and disbursements:
Offsetting collections (collected) from:
4123
Non-Federal sources
–591
–658
–687
4180
Budget authority, net (total)
4190
Outlays, net (total)
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 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. Also under the Act, the
Board 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 the 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 for production, issuance, retirement, and shipment
of Federal Reserve notes are not included because those costs are reimbursed in full by the Federal Reserve banks.
Object Classification (in millions of dollars)
Identification code 920–4982–0–4–803
2014 actual
2015 est.
2016 est.
11.1
Reimbursable obligations: Personnel compensation: Full-time permanent
351
380
392
11.9
Total personnel compensation
351
380
392
12.1
Civilian personnel benefits
71
77
76
13.0
Benefits for former personnel
7
6
6
21.0
Travel and transportation of persons
15
15
15
22.0
Transportation of things
1
1
23.2
Rental payments to others
18
26
27
23.3
Communications, utilities, and miscellaneous charges
11
10
10
24.0
Printing and reproduction
2
2
2
25.1
Advisory and assistance services
58
67
81
25.2
Other services from non-Federal sources
26
40
43
25.4
Operation and maintenance of facilities
2
3
3
25.7
Operation and maintenance of equipment
4
5
5
26.0
Supplies and materials
2
2
2
31.0
Equipment
24
24
24
99.9
Total new obligations
591
658
687