Accounting For QE

A related post noted the UK’s Treasury claim to the profits generated by QE. The financial consequences of balance sheet activism by the Fed and the ECB have also come under the spotlight. The prospect of the Fed paying billions of dollars to commercial banks as interest on reserves is especially controversial.
ECB unveils €1.1bn profit on crisis bonds, Financial Times, 21 Feb 2013
Fears at Fed of rate payouts to banks, Financial Times, 18 Feb 2013
The Fed’s profits, The Economist, 26 Jan 2013
The Federal Reserve’s Balance Sheet: A Primer and Projections, FRB Working Paper, Aug 2012