Overall assets held by the Fed at the end of the year totaled $2.919 trillion, which is a $491 billion increase from 2010. However, the Fed loaded up on Treasury bonds last year, buying $683 billion. At the same time, it reduced its holding in debt issued by Fannie Mae and Freddie Mac by $45 billion and other mortgage securities by $156 billion.
The Fed's investment in insurance giant American International Group (AIG) also waned in 2011. The Fed wound down $47 billion it had invested in the firm in 2011, including the $20.6 billion line of credit it had established with the company, which was at the forefront of the financial meltdown.