Financial Times FT.com

Fed makes $14bn profit on crisis loans

By Francesco Guerrera in New York and Krishna Guha in Washington

Published: August 30 2009 22:48 | Last updated: August 31 2009 15:21

The Federal Reserve has made a $14bn profit on loan programmes that have provided hundreds of billions of dollars in liquidity to the financial system since the start of the crisis two years ago, according to Fed officials.

The internal estimate is based on the difference between the fees and interest on the lending facilities and the interest the Fed would have earned had it invested the funds in three-month Treasury bills.

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