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- published: 04 Nov 2012
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Current season or competition: 2012 Fed Cup |
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Sport | Tennis |
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Founded | 1963 |
No. of teams | 8 (World Group) 80 (total 2011) |
Country(ies) | ITF member nations |
Most recent champion(s) | Czech Republic |
Fed Cup is the premier team competition in women's tennis, launched in 1963 to celebrate the 50th Anniversary of the International Tennis Federation (ITF). The competition was known as the Federation Cup until 1995.
The men's equivalent of the Fed Cup is the Davis Cup.
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The idea for the event can be traced back to 1919, when Hazel Hotchkiss Wightman came up with the concept for a women's team competition. When this was rejected, she instead presented a trophy in 1923 for an annual contest between the United States and Great Britain, who were at that time the strongest tennis-playing nations. Nell Hopman, wife of the legendary Australian Davis Cup Captain Harry Hopman, later took up Mrs Wightman's original idea.
In 1962, when a British resident of the United States, Mary Hardwick Hare, presented a dossier proving that support for such an event was overwhelming, the ITF was persuaded that a team championship played over one week in a different venue each year was a 'good idea'. It had taken 40 years for Wightman’s idea of a women’s Davis Cup to become a reality. Finally in 1963, the ITF launched the Federation Cup to celebrate its 50th anniversary. Open to all nations and not just USA and Great Britain, the much awaited competition became a resounding success.
Played over one week in a different venue each year, the inaugural event attracted 16 countries. The competition was supported by the top players right from the start. Held at the Queen's Club, in London, the first contest between Australia and the United States set the tone with Grand Slam champions Darlene Hard, Billie Jean King, Margaret Smith and Lesley Turner all proudly representing their country on court. The United States emerged the champion nation and has since put their mark on the competition, collecting a record 17 titles over the years.
That first Federation Cup had attracted entries from 16 teams, a respectable number considering that there was no prize money and teams had to meet their own expenses. Sponsorship would later enable this number to expand dramatically, first by the Colgate Group in 1976, and, from 1981 to 1994 by the Japanese communications and computer giant NEC. By 1994, 73 nations competed, and the host nation of a Federation Cup week was now required to build a special tennis complex, giving rise to what became known as the Federation Cup "legacy." In addition to the kudos of showcasing the premier international women's team competition, nations viewed their involvement as providing an unprecedented opportunity for their national game to develop.
The rise in entries led to the creation of regional qualifying competitions in 1992 and, subsequently in 1995, the Federation Cup adopted a new format and shortened its name to the Fed Cup. Having seen the great success that the home-and-away format had achieved in Davis Cup, the format for the Fed Cup was changed in 1995 so that women, as well as men, could play for their country in their country. While the format has been adjusted several times since 1995, the current format, introduced in 2005, incorporates an eight Nation World Group I and eight nation World Group II playing both home-and-away over three weekends throughout the year.
While many nations enter the Fed Cup each year, only 16 countries qualify for the elite World Group and World Group II each year (eight in World Group and eight in World Group II).
They reach World Group and World Group II as follows:
(a) World Group - the four nations that win their World Group first round tie remain in the World Group for the following year. First round losers contest the World Group Play-offs against the four winning nations from World Group II to determine relegation/promotion for the following year's competition. (The four nations that win World Group Play-offs will be in the World Group the following year, while the four losers will start the following year in World Group II.)
(b) World Group II - the four nations that win their World Group II ties will compete in the World Group I Play-Offs to determine relegation/promotion for the following year, as described above. Similarly the four nations that lose their World Group II ties will face winning nations from Group I Zonal competitions, in the World Group II Play-offs, to determine relegation/promotion. (The four nations that win their World Group II Play-offs will be in World Group II the following year, while the four losers will begin the next year in Group I Zonal events.)
Once in the World Group or World Group II, four nations will be seeded in each. The decision as to which nations will be seeded is made by the Fed Cup Committee, according to the ITF Fed Cup Nations Ranking.
At the levels below the World Group and World Group II, the Fed Cup nations compete in Zonal Competition events, which are split into three zones: The Americas Zone, the Asia/Oceania Zone and the Europe/Africa Zone. In each zone there are two groups, Group I being the higher and Group II the lower, except for the Europe/Africa Zone, which also has a Group III.
Within the Group zonal regions, teams are split into pools and play against each other in a round robin format. The exact format of each Group event, and promotion and relegation between them, varies according to the number of participating teams. Please check the relevant tie pages for details of that year's competitions.
However, two teams are always promoted from Europe/Africa Group I to that year's World Group II Play-Offs, while one team each go to the World Group II Play-Offs from Americas Group I and Asia/Oceania Zone Group I.
This structure has been implemented since 2005.
Level |
Group(s) |
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1 |
World Group I |
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World Group I Playoff |
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2 |
World Group II |
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World Group II Playoff |
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3 |
Group One American Zone |
Group One Euro/African Zone |
Group One Asia/Oceania Zone |
4 |
Group Two American Zone |
Group Two Euro/African Zone |
Group Two Asia/Oceania Zone |
5 |
Group Three Euro/African Zone |
In World Group and World Group II, and World Group and World Group II Play-Off ties, each tie is contested in a best of five matches format, and is played across two days. On the first day there are two singles matches, and then the reverse singles matches take place on the following day. The final match is a doubles.
In Zonal Groups I, II and III, ties are played over the best of three matches (two singles and a doubles).
The First Round Ties in the World Group and World Group II are played on a home and away knock-out basis, and take place over a weekend in the early part of the year.
World Group Semifinals and Final are played over on a home and away knock-out basis, and take place over a weekend in July (Semifinals) and September (Final).
Play-Off ties for World Group and World Group II will also be played on a home and away knock-out basis taking place in July.
The choice of ground for First Round, Semifinals and Play-Off ties is decided by lot or goes automatically to one of the competing nations.
As Groups I, II and III are played in a round robin format in all three zones, each event takes place at a single venue over one week. These are held in the first half of the year (to allow promotion of teams to the World Group II Play-Off ties in the second half of the year), and dates and venues are decided by the Fed Cup Committee.
Country | Years Won | Runners Up |
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United States | 1963, 1966, 1967, 1969, 1976, 1977, 1978, 1979, 1980, 1981, 1982, 1986, 1989, 1990, 1996, 1999, 2000 (17) | 1964, 1965, 1974, 1985, 1987, 1991, 1994, 1995, 2003, 2009, 2010 (11) |
Australia | 1964, 1965, 1968, 1970, 1971, 1973, 1974 (7) | 1963, 1969, 1975, 1976, 1977, 1978, 1979, 1980, 1984, 1993 (10) |
Czech Republic Czechoslovakia |
1975, 1983, 1984, 1985, 1988, 2011 (6) | 1986 (1) |
Spain | 1991, 1993, 1994, 1995, 1998 (5) | 1989, 1992, 1996, 2000, 2002, 2008 (6) |
Russia Soviet Union |
2004, 2005, 2007, 2008 (4) | 1988, 1990, 1999, 2001, 2011 (5) |
Italy | 2006, 2009, 2010 (3) | 2007 (1) |
Germany West Germany |
1987, 1992 (2) | 1966, 1970, 1982, 1983 (4) |
France | 1997, 2003 (2) | 2004, 2005 (2) |
South Africa | 1972 (1) | 1973 (1) |
Belgium | 2001 (1) | 2006 (1) |
Slovakia | 2002 (1) | (0) |
Great Britain | (0) | 1967, 1971, 1972, 1981 (4) |
Netherlands | (0) | 1968, 1997 (2) |
Switzerland | (0) | 1998 (1) |
1Players must now be aged 14 and over
It aims to recognise players who have represented their country with distinction, shown exceptional courage on court and demonstrated outstanding commitment to the team during Fed Cup by BNP Paribas.
Year | Winner | |||||
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2009 | Melanie Oudin | |||||
Year | World Group SF | WG / WG II play-offs | WG / WG II R1 | Americas ZG I | Asia/Oceania ZG I | Europe/Africa ZG I |
2010 | Francesca Schiavone | Yanina Wickmayer | Jelena Janković | Maria Fernanda Alves | Kimiko Date-Krumm | Katarina Srebotnik |
2011 | Petra Kvitová | Andrea Petkovic | Bojana Jovanovski | Bianca Botto | Ayumi Morita | Victoria Azarenka |
2012 | Daniela Hantuchová | Catalina Castaño | Li Na | Sofia Arvidsson |
Rank | Nation | Points | Move | Rank | Nation | Points | Move |
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1 | Czech Republic | 29,397.5 | 1 | 11 | Ukraine | 3,762.5 | 1 |
2 | Italy | 25,247.5 | 1 | 12 | Sweden | 3,415.0 | 3 |
3 | Russia | 17,025.0 | 13 | Spain | 3,362.5 | 6 | |
4 | Serbia | 14,117.5 | 1 | 14 | Switzerland | 3,230.0 | |
5 | United States | 11,472.5 | 1 | 15 | Argentina | 3,085.0 | 1 |
6 | Japan | 6,382.5 | 6 | 16 | France | 2,700.0 | 3 |
7 | Australia | 6,252.5 | 1 | 17 | Belarus | 2,225.0 | 1 |
8 | Slovakia | 6,062.5 | 3 | 18 | Great Britain | 2,160.0 | 2 |
9 | Belgium | 5,260.0 | 3 | 19 | Colombia | 2,067.5 | 3 |
10 | Germany | 3,772.5 | 1 | 20 | Paraguay | 2,020.0 | 3 |
Complete rankings as of April 23, 2012
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Wikimedia Commons has media related to: Fed Cup |
Federal Reserve System | |||||
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Headquarters | Washington, D.C. | ||||
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Established | December 23, 1913 (1913-12-23) (98 years ago) | ||||
Chairman | Ben Bernanke | ||||
Central bank of | United States | ||||
Currency | United States dollar | ||||
ISO 4217 Code | USD | ||||
Base borrowing rate | 0%–0.25%[1] | ||||
Website | federalreserve.gov |
Part of a series on Government |
Public finance |
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Reform
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Banking in the United States | |
Monetary policy |
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Lending |
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Deposit accounts |
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Electronic funds transfer (EFT) |
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Check Clearing System |
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Types of bank charter |
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The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. It was created on December 23, 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907[2][3][4][5][6][7]. Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure has evolved.[3][8] Events such as the Great Depression were major factors leading to changes in the system.[9]
The Congress established three key objectives for monetary policy—maximum employment, stable prices, and moderate long-term interest rates—in the Federal Reserve Act.[10] The first two objectives are sometimes referred to as the Federal Reserve's dual mandate.[11] Its duties have expanded over the years, and today, according to official Federal Reserve documentation, include conducting the nation's monetary policy, supervising and regulating banking institutions, maintaining the stability of the financial system and providing financial services to depository institutions, the U.S. government, and foreign official institutions.[12] The Fed also conducts research into the economy and releases numerous publications, such as the Beige Book.
The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors (or Federal Reserve Board), the Federal Open Market Committee (FOMC), twelve regional Federal Reserve Banks located in major cities throughout the nation, numerous privately owned U.S. member banks and various advisory councils.[13][14][15] The FOMC is the committee responsible for setting monetary policy and consists of all seven members of the Board of Governors and the twelve regional bank presidents, though only five bank presidents vote at any given time. The Federal Reserve System has both private and public components, and was designed to serve the interests of both the general public and private bankers. The result is a structure that is considered unique among central banks. It is also unusual in that an entity outside of the central bank, namely the United States Department of the Treasury, creates the currency used.[16]
According to the Board of Governors, the Federal Reserve is independent within government in that "its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government." Its authority is derived from statutes enacted by the U.S. Congress and the System is subject to congressional oversight. The members of the Board of Governors, including its chairman and vice-chairman, are chosen by the President and confirmed by the Senate. The government also exercises some control over the Federal Reserve by appointing and setting the salaries of the system's highest-level employees. Thus the Federal Reserve has both private and public aspects.[17][18][19][20] The U.S. Government receives all of the system's annual profits, after a statutory dividend of 6% on member banks' capital investment is paid, and an account surplus is maintained. In 2010, the Federal Reserve made a profit of $82 billion and transferred $79 billion to the U.S. Treasury.[21] This was followed at the end of 2011 with a transfer of $77 billion in profits to the U.S. Treasury Department.[22]
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In 1690, the Massachusetts Bay Colony became the first to issue paper money in what would become the United States, but soon others began printing their own money as well. The demand for currency in the colonies was due to the scarcity of coins, which had been the primary means of trade.[23] Colonies' paper currencies were used to pay for their expenses, as well as a means to lend money to the colonies' citizens. Paper money quickly became the primary means of exchange within each colony, and it even began to be used in financial transactions with other colonies.[24] However, some of the currencies were not redeemable in gold or silver, which caused them to depreciate.[23] The Currency Act of 1751 set limits on the issuance of Bills of Credit by the New England states and set requirements for the redemption of any bills issued. This Act was in response to the overissuance of bills by Rhode Island, eventually reducing their value to 1/27 of the issuing value.[25] The Currency Act of 1764 completely banned the issuance of Bills of Credit (paper money) in the colonies and the making of such bills legal tender because their depreciation allowed the discharge of debts with depreciated paper at a rate less than contracted for, to the great discouragement and prejudice of the trade and commerce of his Majesty's subjects. The ban proved extremely harmful to the economy of the colonies and inhibited trade, both within the colonies and abroad.[26]
The first attempt at a national currency was during the American Revolutionary War. In 1775 the Continental Congress, as well as the states, began issuing paper currency, calling the bills "Continentals". The Continentals were backed only by future tax revenue, and were used to help finance the Revolutionary War. Overprinting, as well as British counterfeiting caused the value of the Continental to diminish quickly. This experience with paper money led the United States to strip the power to issue Bills of Credit (paper money) from a draft of the new Constitution on August 16, 1787.[27] as well as banning such issuance by the various states, and limiting the states ability to make anything but gold or silver coin legal tender.[28]
In 1791 the government granted the First Bank of the United States a charter to operate as the U.S. central bank until 1811.[23] The First Bank of the United States came to an end under President Madison because Congress refused to renew its charter. The Second Bank of the United States was established in 1816, and lost its authority to be the central bank of the U.S. twenty years later under President Jackson when its charter expired. Both banks were based upon the Bank of England.[29] Ultimately, a third national bank, known as the Federal Reserve, was established in 1913 and still exists to this day.
The first U.S. institution with central banking responsibilities was the First Bank of the United States, chartered by Congress and signed into law by President George Washington on February 25, 1791 at the urging of Alexander Hamilton. This was done despite strong opposition from Thomas Jefferson and James Madison, among numerous others. The charter was for twenty years and expired in 1811 under President Madison, because Congress refused to renew it.[30]
In 1816, however, Madison revived it in the form of the Second Bank of the United States. Years later, early renewal of the bank's charter became the primary issue in the reelection of President Andrew Jackson. After Jackson, who was opposed to the central bank, was reelected, he pulled the government's funds out of the bank. Nicholas Biddle, President of the Second Bank of the United States, responded by contracting the money supply to pressure Jackson to renew the bank's charter forcing the country into a recession, which the bank blamed on Jackson's policies[citation needed]. Interestingly, Jackson is the only President to completely pay off the national debt. The bank's charter was not renewed in 1836. From 1837 to 1862, in the Free Banking Era there was no formal central bank. From 1862 to 1913, a system of national banks was instituted by the 1863 National Banking Act. A series of bank panics, in 1873, 1893, and 1907[5][6][7], provided strong demand for the creation of a centralized banking system.
The main motivation for the third central banking system came from the Panic of 1907, which caused renewed demands for banking and currency reform.[5][6][7][31] During the last quarter of the 19th century and the beginning of the 20th century the United States economy went through a series of financial panics.[32] According to many economists, the previous national banking system had two main weaknesses: an inelastic currency and a lack of liquidity.[32] In 1908, Congress enacted the Aldrich-Vreeland Act, which provided for an emergency currency and established the National Monetary Commission to study banking and currency reform.[33] The National Monetary Commission returned with recommendations which were repeatedly rejected by Congress. A revision crafted during a secret meeting on Jekyll Island by Senator Aldrich and representatives of the nations top finance and industrial groups later became the basis of the Federal Reserve Act.[34][35] The House voted on December 22, 1913 with 298 yeas to 60 nays and 76 not voting and the Senate voting on December 23, 1913 with 43 yeas to 25 nays and 27 not voting.[36] President Woodrow Wilson signed the bill later that day at 6:02pm.[37]
The head of the bipartisan National Monetary Commission was financial expert and Senate Republican leader Nelson Aldrich. Aldrich set up two commissions—one to study the American monetary system in depth and the other, headed by Aldrich himself, to study the European central banking systems and report on them.[33] Aldrich went to Europe opposed to centralized banking, but after viewing Germany's monetary system he came away believing that a centralized bank was better than the government-issued bond system that he had previously supported.
In early November 1910, Aldrich met with five well known members of the New York banking community to devise a central banking bill. Paul Warburg, an attendee of the meeting and long time advocate of central banking in the U.S., later wrote that Aldrich was "bewildered at all that he had absorbed abroad and he was faced with the difficult task of writing a highly technical bill while being harassed by the daily grind of his parliamentary duties".[38] After ten days of deliberation, the bill, which would later be referred to as the "Aldrich Plan", was agreed upon. It had several key components, including a central bank with a Washington-based headquarters and fifteen branches located throughout the U.S. in geographically strategic locations, and a uniform elastic currency based on gold and commercial paper. Aldrich believed a central banking system with no political involvement was best, but was convinced by Warburg that a plan with no public control was not politically feasible.[38] The compromise involved representation of the public sector on the Board of Directors.[39]
Aldrich's bill met much opposition from politicians. Critics charged Aldrich of being biased due to his close ties to wealthy bankers such as J. P. Morgan and John D. Rockefeller, Jr., Aldrich's son-in-law. Most Republicans favored the Aldrich Plan,[39] but it lacked enough support in Congress to pass because rural and western states viewed it as favoring the "eastern establishment".[2] In contrast, progressive Democrats favored a reserve system owned and operated by the government; they believed that public ownership of the central bank would end Wall Street's control of the American currency supply.[39] Conservative Democrats fought for a privately owned, yet decentralized, reserve system, which would still be free of Wall Street's control.[39]
The original Aldrich Plan was dealt a fatal blow in 1912, when Democrats won the White House and Congress.[38] Nonetheless, President Woodrow Wilson believed that the Aldrich plan would suffice with a few modifications. The plan became the basis for the Federal Reserve Act, which was proposed by Senator Robert Owen in May 1913. The primary difference between the two bills was the transfer of control of the Board of Directors (called the Federal Open Market Committee in the Federal Reserve Act) to the government.[2][30] The bill passed Congress on December 23, 1913,[40][41] on a mostly partisan basis, with most Democrats voting "yea" and most Republicans voting "nay".[30]
Key laws affecting the Federal Reserve have been:[42]
The primary motivation for creating the Federal Reserve System was to address banking panics.[3] Other purposes are stated in the Federal Reserve Act, such as "to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes".[43] Before the founding of the Federal Reserve, the United States underwent several financial crises. A particularly severe crisis in 1907 led Congress to enact the Federal Reserve Act in 1913. Today the Federal Reserve System has broader responsibilities than only ensuring the stability of the financial system.[44]
Current functions of the Federal Reserve System include:[12][44]
Bank runs occur because banking institutions in the United States are only required to hold a fraction of their depositors' money in reserve. This practice is called fractional-reserve banking. As a result, most banks invest the majority of their depositors' money. On rare occasion, too many of the bank's customers will withdraw their savings and the bank will need help from another institution to continue operating. Bank runs can lead to a multitude of social and economic problems. The Federal Reserve was designed as an attempt to prevent or minimize the occurrence of bank runs, and possibly act as a lender of last resort if a bank run does occur. Many economists, following Milton Friedman, believe that the Federal Reserve inappropriately refused to lend money to small banks during the bank runs of 1929.[46]
One way to prevent bank runs is to have a money supply that can expand when money is needed. The term "elastic currency" in the Federal Reserve Act does not just mean the ability to expand the money supply, but also to contract it. Some economic theories have been developed that support the idea of expanding or shrinking a money supply as economic conditions warrant. Elastic currency is defined by the Federal Reserve as:[47]
Currency that can, by the actions of the central monetary authority, expand or contract in amount warranted by economic conditions.
Monetary policy of the Federal Reserve System is based partially on the theory that it is best overall to expand or contract the money supply as economic conditions change.
Because some banks refused to clear checks from certain others during times of economic uncertainty, a check-clearing system was created in the Federal Reserve system. It is briefly described in The Federal Reserve System—Purposes and Functions as follows:[48]
By creating the Federal Reserve System, Congress intended to eliminate the severe financial crises that had periodically swept the nation, especially the sort of financial panic that occurred in 1907. During that episode, payments were disrupted throughout the country because many banks and clearinghouses refused to clear checks drawn on certain other banks, a practice that contributed to the failure of otherwise solvent banks. To address these problems, Congress gave the Federal Reserve System the authority to establish a nationwide check-clearing system. The System, then, was to provide not only an elastic currency—that is, a currency that would expand or shrink in amount as economic conditions warranted—but also an efficient and equitable check-collection system.
In the United States, the Federal Reserve serves as the lender of last resort to those institutions that cannot obtain credit elsewhere and the collapse of which would have serious implications for the economy. It took over this role from the private sector "clearing houses" which operated during the Free Banking Era; whether public or private, the availability of liquidity was intended to prevent bank runs.
According to the Federal Reserve Bank of Minneapolis, "the Federal Reserve has the authority and financial resources to act as 'lender of last resort' by extending credit to depository institutions or to other entities in unusual circumstances involving a national or regional emergency, where failure to obtain credit would have a severe adverse impact on the economy."[49] The Federal Reserve System's role as lender of last resort has been criticized because it shifts the risk and responsibility away from lenders and borrowers and places it on others in the form of inflation.[50]
Through its discount and credit operations, Reserve Banks provide liquidity to banks to meet short-term needs stemming from seasonal fluctuations in deposits or unexpected withdrawals. Longer term liquidity may also be provided in exceptional circumstances. The rate the Fed charges banks for these loans is the discount rate (officially the primary credit rate).
By making these loans, the Fed serves as a buffer against unexpected day-to-day fluctuations in reserve demand and supply. This contributes to the effective functioning of the banking system, alleviates pressure in the reserves market and reduces the extent of unexpected movements in the interest rates.[51] For example, on September 16, 2008, the Federal Reserve Board authorized an $85 billion loan to stave off the bankruptcy of international insurance giant American International Group (AIG).[52][53]
In its role as the central bank of the United States, the Fed serves as a banker's bank and as the government's bank. As the banker's bank, it helps to assure the safety and efficiency of the payments system. As the government's bank, or fiscal agent, the Fed processes a variety of financial transactions involving trillions of dollars. Just as an individual might keep an account at a bank, the U.S. Treasury keeps a checking account with the Federal Reserve, through which incoming federal tax deposits and outgoing government payments are handled. As part of this service relationship, the Fed sells and redeems U.S. government securities such as savings bonds and Treasury bills, notes and bonds. It also issues the nation's coin and paper currency. The U.S. Treasury, through its Bureau of the Mint and Bureau of Engraving and Printing, actually produces the nation's cash supply and, in effect, sells the paper currency to the Federal Reserve Banks at manufacturing cost, and the coins at face value. The Federal Reserve Banks then distribute it to other financial institutions in various ways.[54] During the Fiscal Year 2008, the Bureau of Engraving and Printing delivered 7.7 billion notes at an average cost of 6.4 cents per note.[55]
Federal funds are the reserve balances (also called federal reserve accounts) that private banks keep at their local Federal Reserve Bank.[56][57] These balances are the namesake reserves of the Federal Reserve System. The purpose of keeping funds at a Federal Reserve Bank is to have a mechanism for private banks to lend funds to one another. This market for funds plays an important role in the Federal Reserve System as it is what inspired the name of the system and it is what is used as the basis for monetary policy. Monetary policy works partly by influencing how much interest the private banks charge each other for the lending of these funds.
Federal reserve accounts contain federal reserve credit, which can be converted into federal reserve notes. Private banks maintain their bank reserves in federal reserve accounts.
The system was designed out of a compromise between the competing philosophies of privatization and government regulation. In 2006 Donald L. Kohn, vice chairman of the Board of Governors, summarized the history of this compromise:[58]
Agrarian and progressive interests, led by William Jennings Bryan, favored a central bank under public, rather than banker, control. But the vast majority of the nation's bankers, concerned about government intervention in the banking business, opposed a central bank structure directed by political appointees. The legislation that Congress ultimately adopted in 1913 reflected a hard-fought battle to balance these two competing views and created the hybrid public-private, centralized-decentralized structure that we have today.
In the current system, private banks are for-profit businesses but government regulation places restrictions on what they can do. The Federal Reserve System is a part of government that regulates the private banks. The balance between privatization and government involvement is also seen in the structure of the system. Private banks elect members of the board of directors at their regional Federal Reserve Bank while the members of the Board of Governors are selected by the President of the United States and confirmed by the Senate. The private banks give input to the government officials about their economic situation and these government officials use this input in Federal Reserve policy decisions. In the end, private banking businesses are able to run a profitable business while the U.S. government, through the Federal Reserve System, oversees and regulates the activities of the private banks.
Federal Banking Agency Audit Act enacted in 1978 as Public Law 95-320 and Section 31 USC 714 of U.S. Code establish that the Federal Reserve may be audited by the Government Accountability Office (GAO).[59] The GAO has authority to audit check-processing, currency storage and shipments, and some regulatory and bank examination functions, however there are restrictions to what the GAO may in fact audit. Audits of the Reserve Board and Federal Reserve banks may not include:
The financial crisis which began in 2007, corporate bailouts, and concerns over the Fed's secrecy have brought renewed concern regarding ability of the Fed to effectively manage the national monetary system.[62] A July 2009 Gallup Poll found only 30% Americans thought the Fed was doing a good or excellent job, a rating even lower than that for the Internal Revenue Service, which drew praise from 40%.[63] The Federal Reserve Transparency Act was introduced by congressman Ron Paul in order to obtain a more detailed audit of the Fed. The Fed has since hired Linda Robertson who headed the Washington lobbying office of Enron Corp. and was adviser to all three of the Clinton administration's Treasury secretaries.[64][65][66][67]
The Board of Governors in the Federal Reserve System has a number of supervisory and regulatory responsibilities in the U.S. banking system, but not complete responsibility. A general description of the types of regulation and supervision involved in the U.S. banking system is given by the Federal Reserve:[68]
The Board also plays a major role in the supervision and regulation of the U.S. banking system. It has supervisory responsibilities for state-chartered banks[69] that are members of the Federal Reserve System, bank holding companies (companies that control banks), the foreign activities of member banks, the U.S. activities of foreign banks, and Edge Act and "agreement corporations" (limited-purpose institutions that engage in a foreign banking business). The Board and, under delegated authority, the Federal Reserve Banks, supervise approximately 900 state member banks and 5,000 bank holding companies. Other federal agencies also serve as the primary federal supervisors of commercial banks; the Office of the Comptroller of the Currency supervises national banks, and the Federal Deposit Insurance Corporation supervises state banks that are not members of the Federal Reserve System.Some regulations issued by the Board apply to the entire banking industry, whereas others apply only to member banks, that is, state banks that have chosen to join the Federal Reserve System and national banks, which by law must be members of the System. The Board also issues regulations to carry out major federal laws governing consumer credit protection, such as the Truth in Lending, Equal Credit Opportunity, and Home Mortgage Disclosure Acts. Many of these consumer protection regulations apply to various lenders outside the banking industry as well as to banks.
Members of the Board of Governors are in continual contact with other policy makers in government. They frequently testify before congressional committees on the economy, monetary policy, banking supervision and regulation, consumer credit protection, financial markets, and other matters.
The Board has regular contact with members of the President's Council of Economic Advisers and other key economic officials. The Chairman also meets from time to time with the President of the United States and has regular meetings with the Secretary of the Treasury. The Chairman has formal responsibilities in the international arena as well.
The board of directors of each Federal Reserve Bank District also has regulatory and supervisory responsibilities. For example, a member bank (private bank) is not permitted to give out too many loans to people who cannot pay them back. This is because too many defaults on loans will lead to a bank run. If the board of directors has judged that a member bank is performing or behaving poorly, it will report this to the Board of Governors. This policy is described in United States Code:[70]
Each Federal reserve bank shall keep itself informed of the general character and amount of the loans and investments of its member banks with a view to ascertaining whether undue use is being made of bank credit for the speculative carrying of or trading in securities, real estate, or commodities, or for any other purpose inconsistent with the maintenance of sound credit conditions; and, in determining whether to grant or refuse advances, rediscounts, or other credit accommodations, the Federal reserve bank shall give consideration to such information. The chairman of the Federal reserve bank shall report to the Board of Governors of the Federal Reserve System any such undue use of bank credit by any member bank, together with his recommendation. Whenever, in the judgment of the Board of Governors of the Federal Reserve System, any member bank is making such undue use of bank credit, the Board may, in its discretion, after reasonable notice and an opportunity for a hearing, suspend such bank from the use of the credit facilities of the Federal Reserve System and may terminate such suspension or may renew it from time to time.
The punishment for making false statements or reports that overvalue an asset is also stated in the U.S. Code:[71]
Whoever knowingly makes any false statement or report, or willfully overvalues any land, property or security, for the purpose of influencing in any way...shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.
These aspects of the Federal Reserve System are the parts intended to prevent or minimize speculative asset bubbles, which ultimately lead to severe market corrections. The recent bubbles and corrections in energies, grains, equity and debt products and real estate cast doubt on the efficacy of these controls.
The Federal Reserve plays an important role in the U.S. payments system. The twelve Federal Reserve Banks provide banking services to depository institutions and to the federal government. For depository institutions, they maintain accounts and provide various payment services, including collecting checks, electronically transferring funds, and distributing and receiving currency and coin. For the federal government, the Reserve Banks act as fiscal agents, paying Treasury checks; processing electronic payments; and issuing, transferring, and redeeming U.S. government securities.[72]
In passing the Depository Institutions Deregulation and Monetary Control Act of 1980, Congress reaffirmed its intention that the Federal Reserve should promote an efficient nationwide payments system. The act subjects all depository institutions, not just member commercial banks, to reserve requirements and grants them equal access to Reserve Bank payment services. It also encourages competition between the Reserve Banks and private-sector providers of payment services by requiring the Reserve Banks to charge fees for certain payments services listed in the act and to recover the costs of providing these services over the long run.
The Federal Reserve plays a vital role in both the nation's retail and wholesale payments systems, providing a variety of financial services to depository institutions. Retail payments are generally for relatively small-dollar amounts and often involve a depository institution's retail clients—individuals and smaller businesses. The Reserve Banks' retail services include distributing currency and coin, collecting checks, and electronically transferring funds through the automated clearinghouse system. By contrast, wholesale payments are generally for large-dollar amounts and often involve a depository institution's large corporate customers or counterparties, including other financial institutions. The Reserve Banks' wholesale services include electronically transferring funds through the Fedwire Funds Service and transferring securities issued by the U.S. government, its agencies, and certain other entities through the Fedwire Securities Service. Because of the large amounts of funds that move through the Reserve Banks every day, the System has policies and procedures to limit the risk to the Reserve Banks from a depository institution's failure to make or settle its payments.
The Federal Reserve Banks began a multi-year restructuring of their check operations in 2003 as part of a long-term strategy to respond to the declining use of checks by consumers and businesses and the greater use of electronics in check processing. The Reserve Banks will have reduced the number of full-service check processing locations from 45 in 2003 to 4 by early 2011.[73]
The Federal Reserve System has both private and public components, and can make decisions without the permission of Congress or the President of the U.S.[17] The System does not require public funding, and derives its authority and purpose from the Federal Reserve Act passed by Congress in 1913. The four main components of the Federal Reserve System are (1) the Board of Governors, (2) the Federal Open Market Committee, (3) the twelve regional Federal Reserve Banks, and (4) the member banks throughout the country.
The seven-member Board of Governors is a federal agency. It is charged with the overseeing of the 12 District Reserve Banks and setting national monetary policy. It also supervises and regulates the U.S. banking system in general.[74] Governors are appointed by the President of the United States and confirmed by the Senate for staggered 14-year terms.[51] One term begins every two years, on February 1 of even-numbered years, and members serving a full term cannot be renominated for a second term.[75] "[U]pon the expiration of their terms of office, members of the Board shall continue to serve until their successors are appointed and have qualified." The law provides for the removal of a member of the Board by the President "for cause".[76] The Board is required to make an annual report of operations to the Speaker of the U.S. House of Representatives.
The Chairman and Vice Chairman of the Board of Governors are appointed by the President from among the sitting Governors. They both serve a four year term and they can be renominated as many times as the President chooses, until their terms on the Board of Governors expire.[77]
The current members of the Board of Governors are as follows:[75]
Commissioner | Entered office[78] | Term expires |
---|---|---|
Ben Bernanke (Chairman) |
February 1, 2006 | January 31, 2020 January 31, 2014 (as Chairman) |
Janet Yellen (Vice Chairman) |
October 4, 2010 | January 31, 2024 October 4, 2014 (as Vice Chairman) |
Daniel Tarullo | January 28, 2009 | January 31, 2022 |
Sarah Bloom Raskin | October 4, 2010 | January 31, 2016 |
Jerome H. Powell | May, 2012 | January 31, 2014 |
Jeremy C. Stein | May 30, 2012 | January 31, 2018 |
Elizabeth A. Duke | August 5, 2008 | January 31, 2012 |
In late December 2011, President Barack Obama nominated Stein, a Harvard University finance professor and Democrat, and Powell, formerly of Dillon Read, Bankers Trust[79] and The Carlyle Group[80] and a Republican. Both candidates also have Treasury Department experience in the Obama and George H.W. Bush administrations respectively.[79]
"Obama administration officials [had] regrouped to identify Fed candidates after Peter Diamond, a Nobel Prize-winning economist, withdrew his nomination to the board in June [2011] in the face of Republican opposition. Richard Clarida, a potential nominee who was a Treasury official under George W. Bush, pulled out of consideration in August [2011]", one account of the December nominations noted.[81] The two other Obama nominees in 2011, Yellen and Raskin,[82] were confirmed in September.[83] One of the vacancies was created in 2011 with the resignation of Kevin Warsh, who took office in 2006 to fill the unexpired term ending January 31, 2018, and resigned his position effective March 31, 2011.[84][85] In March 2012, U.S. Senator David Vitter (R, LA) said he would oppose Obama's Stein and Powell nominations, dampening near-term hopes for approval.[86] However Senate leaders reached a deal, paving the way for affirmative votes on the two nominees in May 2012 and bringing the board to full strength for the first time since 2006[87] with Duke's service after term end.
The Federal Open Market Committee (FOMC) consists of 12 members, seven from the Board of Governors and 5 of the regional Federal Reserve Bank presidents. The FOMC oversees open market operations, the principal tool of national monetary policy. These operations affect the amount of Federal Reserve balances available to depository institutions, thereby influencing overall monetary and credit conditions. The FOMC also directs operations undertaken by the Federal Reserve in foreign exchange markets. The president of the Federal Reserve Bank of New York is a permanent member of the FOMC, while the rest of the bank presidents rotate at two- and three-year intervals. All Regional Reserve Bank presidents contribute to the committee's assessment of the economy and of policy options, but only the five presidents who are then members of the FOMC vote on policy decisions. The FOMC determines its own internal organization and, by tradition, elects the Chairman of the Board of Governors as its chairman and the president of the Federal Reserve Bank of New York as its vice chairman. It is informal policy within the FOMC for the Board of Governors and the New York Federal Reserve Bank president to vote with the Chairman of the FOMC; anyone who is not an expert on monetary policy traditionally votes with the chairman as well; and in any vote no more than two FOMC members can dissent.[88] Formal meetings typically are held eight times each year in Washington, D.C. Nonvoting Reserve Bank presidents also participate in Committee deliberations and discussion. The FOMC generally meets eight times a year in telephone consultations and other meetings are held when needed.[89]
There are 12 Federal Reserve Banks located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St Louis, Minneapolis, Kansas City, Dallas, and San Francisco. Each reserve Bank is responsible for member banks located in its district. The size of each district was set based upon the population distribution of the United States when the Federal Reserve Act was passed. Each regional Bank has a president, who is the chief executive officer of their Bank. Each regional Reserve Bank's president is nominated by their Bank's board of directors, but the nomination is contingent upon approval by the Board of Governors. Presidents serve five year terms and may be reappointed.[90]
Each regional Bank's board consists of nine members. Members are broken down into three classes: A, B, and C. There are three board members in each class. Class A members are chosen by the regional Bank's shareholders, and are intended to represent member banks' interests. Member banks are divided into three categories large, medium, and small. Each category elects one of the three class A board members. Class B board members are also nominated by the region's member banks, but class B board members are supposed to represent the interests of the public. Lastly, class C board members are nominated by the Board of Governors, and are also intended to represent the interests of the public.[91]
A member bank is a private institution and owns stock in its regional Federal Reserve Bank. All nationally chartered banks hold stock in one of the Federal Reserve Banks. State chartered banks may choose to be members (and hold stock in their regional Federal Reserve bank), upon meeting certain standards. About 38% of U.S. banks are members of their regional Federal Reserve Bank.[92] The amount of stock a member bank must own is equal to 3% of its combined capital and surplus.[93][94] However, holding stock in a Federal Reserve bank is not like owning stock in a publicly traded company. These stocks cannot be sold or traded, and member banks do not control the Federal Reserve Bank as a result of owning this stock. The charter and organization of each Federal Reserve Bank is established by law and cannot be altered by the member banks. Member banks, do however, elect six of the nine members of the Federal Reserve Banks' boards of directors.[51][95] From the profits of the Regional Bank of which it is a member, a member bank receives a dividend equal to 6% of their purchased stock.[17] The remainder of the regional Federal Reserve Banks' profits is given over to the United States Treasury Department. In 2009, the Federal Reserve Banks distributed $1.4 billion in dividends to member banks and returned $47 billion to the U.S. Treasury.[96]
The Federal Reserve Banks have an intermediate legal status, with some features of private corporations and some features of public federal agencies. The United States has an interest in the Federal Reserve Banks as tax-exempt federally-created instrumentalities whose profits belong to the federal government, but this interest is not proprietary.[97] In Lewis v. United States,[98] the United States Court of Appeals for the Ninth Circuit stated that: "The Reserve Banks are not federal instrumentalities for purposes of the FTCA [the Federal Tort Claims Act], but are independent, privately owned and locally controlled corporations." The opinion went on to say, however, that: "The Reserve Banks have properly been held to be federal instrumentalities for some purposes." Another relevant decision is Scott v. Federal Reserve Bank of Kansas City,[97] in which the distinction is made between Federal Reserve Banks, which are federally-created instrumentalities, and the Board of Governors, which is a federal agency.
Regarding the structural relationship between the twelve Federal Reserve banks and the various commercial (member) banks, political science professor Michael D. Reagan has written that:[99]
... the "ownership" of the Reserve Banks by the commercial banks is symbolic; they do not exercise the proprietary control associated with the concept of ownership nor share, beyond the statutory dividend, in Reserve Bank "profits." ... Bank ownership and election at the base are therefore devoid of substantive significance, despite the superficial appearance of private bank control that the formal arrangement creates.
According to the web site for the Federal Reserve Bank of Richmond, "[m]ore than one-third of U.S. commercial banks are members of the Federal Reserve System. National banks must be members; state chartered banks may join by meeting certain requirements."[100]
The Board of Governors of the Federal Reserve System, the Federal Reserve banks, and the individual member banks undergo regular audits by the GAO and an outside auditor. GAO audits are limited and do not cover "most of the Fed’s monetary policy actions or decisions, including discount window lending (direct loans to financial institutions), open-market operations and any other transactions made under the direction of the Federal Open Market Committee" ...[nor may the GAO audit] "dealings with foreign governments and other central banks." [101] Various statutory changes, including the Federal Reserve Transparency Act, have been proposed to broaden the scope of the audits.
November 7, 2008, Bloomberg L.P. News brought a lawsuit (Bloomberg L.P. v. Board of Governors of the Federal Reserve System) against the Board of Governors of the Federal Reserve System to force the Board to reveal the identities of firms for which it has provided guarantees during the Late-2000s financial crisis.[102] Bloomberg, L.P. won at the trial court[103] and the Fed's appeals were rejected at both the United States Court of Appeals for the Second Circuit and the U.S. Supreme Court. The data[104] was released March 31, 2011.[105]
The term "monetary policy" refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. What happens to money and credit affects interest rates (the cost of credit) and the performance of an economy. The Federal Reserve Act of 1913 gave the Federal Reserve authority to set monetary policy in the United States.[106][107]
The Federal Reserve sets monetary policy by influencing the Federal funds rate, which is the rate of interbank lending of excess reserves. The rate that banks charge each other for these loans is determined in the interbank market but the Federal Reserve influences this rate through the three "tools" of monetary policy described in the Tools section below.
The Federal Funds rate is a short-term interest rate the FOMC focuses on directly. This rate ultimately affects the longer-term interest rates throughout the economy. A summary of the basis and implementation of monetary policy is stated by the Federal Reserve:
The Federal Reserve implements U.S. monetary policy by affecting conditions in the market for balances that depository institutions hold at the Federal Reserve Banks...By conducting open market operations, imposing reserve requirements, permitting depository institutions to hold contractual clearing balances, and extending credit through its discount window facility, the Federal Reserve exercises considerable control over the demand for and supply of Federal Reserve balances and the federal funds rate. Through its control of the federal funds rate, the Federal Reserve is able to foster financial and monetary conditions consistent with its monetary policy objectives.[108]
This influences the economy through its effect on the quantity of reserves that banks use to make loans. Policy actions that add reserves to the banking system encourage lending at lower interest rates thus stimulating growth in money, credit, and the economy. Policy actions that absorb reserves work in the opposite direction. The Fed's task is to supply enough reserves to support an adequate amount of money and credit, avoiding the excesses that result in inflation and the shortages that stifle economic growth.[109]
There are three main tools of monetary policy that the Federal Reserve uses to influence the amount of reserves in private banks:[106]
Tool | Description |
---|---|
Open market operations | Purchases and sales of U.S. Treasury and federal agency securities—the Federal Reserve's principal tool for implementing monetary policy. The Federal Reserve's objective for open market operations has varied over the years. During the 1980s, the focus gradually shifted toward attaining a specified level of the federal funds rate (the rate that banks charge each other for overnight loans of federal funds, which are the reserves held by banks at the Fed), a process that was largely complete by the end of the decade.[110] |
Discount rate | The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility—the discount window.[111] |
Reserve requirements | The amount of funds that a depository institution must hold in reserve against specified deposit liabilities.[112] |
The Federal Reserve System implements monetary policy largely by targeting the federal funds rate. This is the rate that banks charge each other for overnight loans of federal funds, which are the reserves held by banks at the Fed. This rate is actually determined by the market and is not explicitly mandated by the Fed. The Fed therefore tries to align the effective federal funds rate with the targeted rate by adding or subtracting from the money supply through open market operations. The Federal Reserve System usually adjusts the federal funds rate target by 0.25% or 0.50% at a time.
Open market operations allow the Federal Reserve to increase or decrease the amount of money in the banking system as necessary to balance the Federal Reserve's dual mandates. Open market operations are done through the sale and purchase of United States Treasury security, sometimes called "Treasury bills" or more informally "T-bills" or "Treasuries". The Federal Reserve buys Treasury bills from its primary dealers. The purchase of these securities affects the federal funds rate, because primary dealers have accounts at depository institutions.[113]
The Federal Reserve education website describes open market operations as follows:[107]
Open market operations involve the buying and selling of U.S. government securities (federal agency and mortgage-backed). The term 'open market' means that the Fed doesn't decide on its own which securities dealers it will do business with on a particular day. Rather, the choice emerges from an 'open market' in which the various securities dealers that the Fed does business with—the primary dealers—compete on the basis of price. Open market operations are flexible and thus, the most frequently used tool of monetary policy.Open market operations are the primary tool used to regulate the supply of bank reserves. This tool consists of Federal Reserve purchases and sales of financial instruments, usually securities issued by the U.S. Treasury, Federal agencies and government-sponsored enterprises. Open market operations are carried out by the Domestic Trading Desk of the Federal Reserve Bank of New York under direction from the FOMC. The transactions are undertaken with primary dealers.
The Fed's goal in trading the securities is to affect the federal funds rate, the rate at which banks borrow reserves from each other. When the Fed wants to increase reserves, it buys securities and pays for them by making a deposit to the account maintained at the Fed by the primary dealer's bank. When the Fed wants to reduce reserves, it sells securities and collects from those accounts. Most days, the Fed does not want to increase or decrease reserves permanently so it usually engages in transactions reversed within a day or two. That means that a reserve injection today could be withdrawn tomorrow morning, only to be renewed at some level several hours later. These short-term transactions are called repurchase agreements (repos) – the dealer sells the Fed a security and agrees to buy it back at a later date.
To smooth temporary or cyclical changes in the money supply, the desk engages in repurchase agreements (repos) with its primary dealers. Repos are essentially secured, short-term lending by the Fed. On the day of the transaction, the Fed deposits money in a primary dealer's reserve account, and receives the promised securities as collateral. When the transaction matures, the process unwinds: the Fed returns the collateral and charges the primary dealer's reserve account for the principal and accrued interest. The term of the repo (the time between settlement and maturity) can vary from 1 day (called an overnight repo) to 65 days.[114]
The Federal Reserve System also directly sets the "discount rate", which is the interest rate for "discount window lending", overnight loans that member banks borrow directly from the Fed. This rate is generally set at a rate close to 100 basis points above the target federal funds rate. The idea is to encourage banks to seek alternative funding before using the "discount rate" option.[115] The equivalent operation by the European Central Bank is referred to as the "marginal lending facility".[116]
Both the discount rate and the federal funds rate influence the prime rate, which is usually about 3 percent higher than the federal funds rate.
Another instrument of monetary policy adjustment employed by the Federal Reserve System is the fractional reserve requirement, also known as the required reserve ratio.[117] The required reserve ratio sets the balance that the Federal Reserve System requires a depository institution to hold in the Federal Reserve Banks,[108] which depository institutions trade in the federal funds market discussed above.[118] The required reserve ratio is set by the Board of Governors of the Federal Reserve System.[119] The reserve requirements have changed over time and some of the history of these changes is published by the Federal Reserve.[120]
Liability Type | Requirement | |
Percentage of liabilities | Effective date | |
Net transaction accounts | ||
$0 to $11.5 million | 0 | 12/29/11 |
More than $11.5 million to $71 million | 3 | 12/29/11 |
More than $71 million | 10 | 12/29/11 |
Nonpersonal time deposits | 0 | 12/27/90 |
Eurocurrency liabilities | 0 | 12/27/90 |
As a response to the financial crisis of 2008, the Federal Reserve now makes interest payments on depository institutions' required and excess reserve balances. The payment of interest on excess reserves gives the central bank greater opportunity to address credit market conditions while maintaining the federal funds rate close to the target rate set by the FOMC.[121]
In order to address problems related to the subprime mortgage crisis and United States housing bubble, several new tools have been created. The first new tool, called the Term Auction Facility, was added on December 12, 2007. It was first announced as a temporary tool[122] but there have been suggestions that this new tool may remain in place for a prolonged period of time.[123] Creation of the second new tool, called the Term Securities Lending Facility, was announced on March 11, 2008.[124] The main difference between these two facilities is that the Term Auction Facility is used to inject cash into the banking system whereas the Term Securities Lending Facility is used to inject treasury securities into the banking system.[125] Creation of the third tool, called the Primary Dealer Credit Facility (PDCF), was announced on March 16, 2008.[126] The PDCF was a fundamental change in Federal Reserve policy because now the Fed is able to lend directly to primary dealers, which was previously against Fed policy.[127] The differences between these 3 new facilities is described by the Federal Reserve:[128]
The Term Auction Facility program offers term funding to depository institutions via a bi-weekly auction, for fixed amounts of credit. The Term Securities Lending Facility will be an auction for a fixed amount of lending of Treasury general collateral in exchange for OMO-eligible and AAA/Aaa rated private-label residential mortgage-backed securities. The Primary Dealer Credit Facility now allows eligible primary dealers to borrow at the existing Discount Rate for up to 120 days.
Some of the measures taken by the Federal Reserve to address this mortgage crisis have not been used since The Great Depression.[129] The Federal Reserve gives a brief summary of these new facilities:[130]
As the economy has slowed in the last nine months and credit markets have become unstable, the Federal Reserve has taken a number of steps to help address the situation. These steps have included the use of traditional monetary policy tools at the macroeconomic level as well as measures at the level of specific markets to provide additional liquidity. The Federal Reserve's response has continued to evolve since pressure on credit markets began to surface last summer, but all these measures derive from the Fed's traditional open market operations and discount window tools by extending the term of transactions, the type of collateral, or eligible borrowers.
A fourth facility, the Term Deposit Facility, was announced December 9, 2009, and approved April 30, 2010, with an effective date of Jun 4, 2010.[131] The Term Deposit Facility allows Reserve Banks to offer term deposits to institutions that are eligible to receive earnings on their balances at Reserve Banks. Term deposits are intended to facilitate the implementation of monetary policy by providing a tool by which the Federal Reserve can manage the aggregate quantity of reserve balances held by depository institutions. Funds placed in term deposits are removed from the accounts of participating institutions for the life of the term deposit and thus drain reserve balances from the banking system.
The Term Auction Facility is a program in which the Federal Reserve auctions term funds to depository institutions.[122] The creation of this facility was announced by the Federal Reserve on December 12, 2007 and was done in conjunction with the Bank of Canada, the Bank of England, the European Central Bank, and the Swiss National Bank to address elevated pressures in short-term funding markets.[132] The reason it was created is because banks were not lending funds to one another and banks in need of funds were refusing to go to the discount window. Banks were not lending money to each other because there was a fear that the loans would not be paid back. Banks refused to go to the discount window because it is usually associated with the stigma of bank failure.[133][134][135] [136] Under the Term Auction Facility, the identity of the banks in need of funds is protected in order to avoid the stigma of bank failure.[137] Foreign exchange swap lines with the European Central Bank and Swiss National Bank were opened so the banks in Europe could have access to U.S. dollars.[137] Federal Reserve Chairman Ben Bernanke briefly described this facility to the U.S. House of Representatives on January 17, 2008:
the Federal Reserve recently unveiled a term auction facility, or TAF, through which prespecified amounts of discount window credit can be auctioned to eligible borrowers. The goal of the TAF is to reduce the incentive for banks to hoard cash and increase their willingness to provide credit to households and firms...TAF auctions will continue as long as necessary to address elevated pressures in short-term funding markets, and we will continue to work closely and cooperatively with other central banks to address market strains that could hamper the achievement of our broader economic objectives.[138]
It is also described in the Term Auction Facility FAQ[122]
The TAF is a credit facility that allows a depository institution to place a bid for an advance from its local Federal Reserve Bank at an interest rate that is determined as the result of an auction. By allowing the Federal Reserve to inject term funds through a broader range of counterparties and against a broader range of collateral than open market operations, this facility could help ensure that liquidity provisions can be disseminated efficiently even when the unsecured interbank markets are under stress. In short, the TAF will auction term funds of approximately one-month maturity. All depository institutions that are judged to be in sound financial condition by their local Reserve Bank and that are eligible to borrow at the discount window are also eligible to participate in TAF auctions. All TAF credit must be fully collateralized. Depositories may pledge the broad range of collateral that is accepted for other Federal Reserve lending programs to secure TAF credit. The same collateral values and margins applicable for other Federal Reserve lending programs will also apply for the TAF.
The Term Securities Lending Facility is a 28-day facility that will offer Treasury general collateral to the Federal Reserve Bank of New York's primary dealers in exchange for other program-eligible collateral. It is intended to promote liquidity in the financing markets for Treasury and other collateral and thus to foster the functioning of financial markets more generally.[139] Like the Term Auction Facility, the TSLF was done in conjunction with the Bank of Canada, the Bank of England, the European Central Bank, and the Swiss National Bank. The resource allows dealers to switch debt that is less liquid for U.S. government securities that are easily tradable. It is anticipated by Federal Reserve officials that the primary dealers, which include Goldman Sachs Group. Inc., J.P. Morgan Chase, and Morgan Stanley, will lend the Treasuries on to other firms in return for cash. That will help the dealers finance their balance sheets.[citation needed] The currency swap lines with the European Central Bank and Swiss National Bank were increased.
The Primary Dealer Credit Facility (PDCF) is an overnight loan facility that will provide funding to primary dealers in exchange for a specified range of eligible collateral and is intended to foster the functioning of financial markets more generally.[128] This new facility marks a fundamental change in Federal Reserve policy because now primary dealers can borrow directly from the Fed when this previously was not permitted.
As of October 2008[update], the Federal Reserve banks will pay interest on reserve balances (required & excess) held by depository institutions. The rate is set at the lowest federal funds rate during the reserve maintenance period of an institution, less 75bp.[140] As of October 23, 2008, the Fed has lowered the spread to a mere 35 bp.[141]
The Term Deposit Facility is a program through which the Federal Reserve Banks will offer interest-bearing term deposits to eligible institutions. By removing "excess deposits" from participating banks, the overall level of reserves available for lending is reduced, which should result in increased market interest rates, acting as a brake on economic activity and inflation. The Federal Reserve has stated that:
Term deposits will be one of several tools that the Federal Reserve could employ to drain reserves when policymakers judge that it is appropriate to begin moving to a less accommodative stance of monetary policy. The development of the TDF is a matter of prudent planning and has no implication for the near-term conduct of monetary policy.[142]
The Federal Reserve initially authorized up to five "small-value offerings are designed to ensure the effectiveness of TDF operations and to provide eligible institutions with an opportunity to gain familiarity with term deposit procedures."[143] After three of the offering auctions were successfully completed, it was announced that small-value auctions would continue on an on-going basis.[144]
The Term Deposit Facility is essentially a tool available to reverse the efforts that have been employed to provide liquidity to the financial markets and to reduce the amount of capital available to the economy. As stated in Bloomberg News:
Policy makers led by Chairman Ben S. Bernanke are preparing for the day when they will have to start siphoning off more than $1 trillion in excess reserves from the banking system to contain inflation. The Fed is charting an eventual return to normal monetary policy, even as a weakening near-term outlook has raised the possibility it may expand its balance sheet.[145]
Chairman Ben S. Bernanke, testifying before House Committee on Financial Services, described the Term Deposit Facility and other facilities to Congress in the following terms:
Most importantly, in October 2008 the Congress gave the Federal Reserve statutory authority to pay interest on balances that banks hold at the Federal Reserve Banks. By increasing the interest rate on banks' reserves, the Federal Reserve will be able to put significant upward pressure on all short-term interest rates, as banks will not supply short-term funds to the money markets at rates significantly below what they can earn by holding reserves at the Federal Reserve Banks. Actual and prospective increases in short-term interest rates will be reflected in turn in higher longer-term interest rates and in tighter financial conditions more generally....As an additional means of draining reserves, the Federal Reserve is also developing plans to offer to depository institutions term deposits, which are roughly analogous to certificates of deposit that the institutions offer to their customers. A proposal describing a term deposit facility was recently published in the Federal Register, and the Federal Reserve is finalizing a revised proposal in light of the public comments that have been received. After a revised proposal is reviewed by the Board, we expect to be able to conduct test transactions this spring and to have the facility available if necessary thereafter. The use of reverse repos and the deposit facility would together allow the Federal Reserve to drain hundreds of billions of dollars of reserves from the banking system quite quickly, should it choose to do so.
When these tools are used to drain reserves from the banking system, they do so by replacing bank reserves with other liabilities; the asset side and the overall size of the Federal Reserve's balance sheet remain unchanged. If necessary, as a means of applying monetary restraint, the Federal Reserve also has the option of redeeming or selling securities. The redemption or sale of securities would have the effect of reducing the size of the Federal Reserve's balance sheet as well as further reducing the quantity of reserves in the banking system. Restoring the size and composition of the balance sheet to a more normal configuration is a longer-term objective of our policies. In any case, the sequencing of steps and the combination of tools that the Federal Reserve uses as it exits from its currently very accommodative policy stance will depend on economic and financial developments and on our best judgments about how to meet the Federal Reserve's dual mandate of maximum employment and price stability.
In sum, in response to severe threats to our economy, the Federal Reserve created a series of special lending facilities to stabilize the financial system and encourage the resumption of private credit flows to American families and businesses. As market conditions and the economic outlook have improved, these programs have been terminated or are being phased out. The Federal Reserve also promoted economic recovery through sharp reductions in its target for the federal funds rate and through large-scale purchases of securities. The economy continues to require the support of accommodative monetary policies. However, we have been working to ensure that we have the tools to reverse, at the appropriate time, the currently very high degree of monetary stimulus. We have full confidence that, when the time comes, we will be ready to do so.[146]
The Asset Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (ABCPMMMFLF) was also called the AMLF. The Facility began operations on September 22, 2008, and was closed on February 1, 2010.[147]
All U.S. depository institutions, bank holding companies (parent companies or U.S. broker-dealer affiliates), or U.S. branches and agencies of foreign banks were eligible to borrow under this facility pursuant to the discretion of the FRBB.
Collateral eligible for pledge under the Facility was required to meet the following criteria:
The Commercial Paper Funding Facility (CPFF): on October 7, 2008 the Federal Reserve further expanded the collateral it will loan against, to include commercial paper. The action made the Fed a crucial source of credit for non-financial businesses in addition to commercial banks and investment firms. Fed officials said they'll buy as much of the debt as necessary to get the market functioning again. They refused to say how much that might be, but they noted that around $1.3 trillion worth of commercial paper would qualify. There was $1.61 trillion in outstanding commercial paper, seasonally adjusted, on the market as of October 1, 2008, according to the most recent data from the Fed. That was down from $1.70 trillion in the previous week. Since the summer of 2007, the market has shrunk from more than $2.2 trillion.[148] This program lent out a total $738 billion before it was closed. Forty-five out of 81 of the companies participating in this program were foreign firms. Research shows that Troubled Asset Relief Program (TARP) recipients were twice as likely to participate in the program than other commercial paper issuers who did not take advantage of the TARP bailout. The Fed incurred no losses from the CPFF.[149]
A little-used tool of the Federal Reserve is the quantitative policy. With that the Federal Reserve actually buys back corporate bonds and mortgage backed securities held by banks or other financial institutions. This in effect puts money back into the financial institutions and allows them to make loans and conduct normal business. The Federal Reserve Board used this policy in the early 1990s when the U.S. economy experienced the savings and loan crisis.[citation needed]
The bursting of the United States housing bubble prompted the Fed to buy mortgage-backed securities for the first time in November 2008. Over six weeks, a total of $1.25 trillion were purchased in order stabilize the housing market, about one-fifth of all U.S. government-backed mortgages.[150]
The Federal Reserve records and publishes large amounts of data. A few websites where data is published are at the Board of Governors Economic Data and Research page,[151] the Board of Governors statistical releases and historical data page,[152] and at the St. Louis Fed's FRED (Federal Reserve Economic Data) page.[153] The Federal Open Market Committee (FOMC) examines many economic indicators prior to determining monetary policy.[154]
Some criticism involves economic data compiled by the Fed. The Fed sponsors much of the monetary economics research in the U.S., and Lawrence H. White objects that this makes it less likely for researchers to publish findings challenging the status quo.[155]
The net worth of households and nonprofit organizations in the United States is published by the Federal Reserve in a report titled, Flow of Funds.[156] At the end of fiscal year 2008, this value was $51.5 trillion.
The most common measures are named M0 (narrowest), M1, M2, and M3. In the United States they are defined by the Federal Reserve as follows:
Measure | Definition |
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M0 | The total of all physical currency, plus accounts at the central bank that can be exchanged for physical currency. |
M1 | M0 + those portions of M0 held as reserves or vault cash + the amount in demand accounts ("checking" or "current" accounts). |
M2 | M1 + most savings accounts, money market accounts, and small denomination time deposits (certificates of deposit of under $100,000). |
M3 | M2 + all other CDs, deposits of eurodollars and repurchase agreements. |
The Federal Reserve stopped publishing M3 statistics in March 2006, saying that the data cost a lot to collect but did not provide significantly useful information.[157] The other three money supply measures continue to be provided in detail.
The Personal consumption expenditures price index, also referred to as simply the PCE price index, is used as one measure of the value of money. It is a United States-wide indicator of the average increase in prices for all domestic personal consumption. Using a variety of data including U.S. Consumer Price Index and Producer Price Index prices, it is derived from the largest component of the Gross Domestic Product in the BEA's National Income and Product Accounts, personal consumption expenditures.
One of the Fed's main roles is to maintain price stability, which means that the Fed's ability to keep a low inflation rate is a long-term measure of the their success.[158] Although the Fed is not required to maintain inflation within a specific range, their long run target for the growth of the PCE price index is between 1.5 and 2 percent.[159] There has been debate among policy makers as to whether or not the Federal Reserve should have a specific inflation targeting policy.[160][161][162]
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There are two types of inflation that are closely tied to each other. Monetary inflation is an increase in the money supply. Price inflation is a sustained increase in the general level of prices, which is equivalent to a decline in the value or purchasing power of money. If the supply of money and credit increases too rapidly over many months (monetary inflation), the result will usually be price inflation. Price inflation does not always increase in direct proportion to monetary inflation; it is also affected by the velocity of money and other factors. With price inflation, a dollar buys less and less over time.[107]
The effects of monetary and price inflation include:[107]
In his 1995 book The Case Against the Fed, economist Murray N. Rothbard argues that price inflation is caused only by an increase in the money supply, and only banks increase the money supply, then banks, including the Federal Reserve, are the only source of inflation.
Adherents of the Austrian School of economic theory blame the economic crisis in the late 2000s[164][not in citation given] on the Federal Reserve's policy, particularly under the leadership of Alan Greenspan, of credit expansion through historically low interest rates starting in 2001, which they claim enabled the United States housing bubble.
Most mainstream economists favor a low, steady rate of inflation.[165] Low (as opposed to zero or negative) inflation may reduce the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduce the risk that a liquidity trap prevents monetary policy from stabilizing the economy.[166] The task of keeping the rate of inflation low and stable is usually given to monetary authorities.
One of the stated goals of monetary policy is maximum employment. The unemployment rate statistics are collected by the Bureau of Labor Statistics, and like the PCE price index are used as a barometer of the nation's economic health, and thus as a measure of the success of an administration's economic policies. Since 1980, both parties have made progressive changes in the basis for calculating unemployment, so that the numbers now quoted cannot be compared directly to the corresponding rates from earlier administrations, or to the rest of the world.[167]
The Federal Reserve is self-funded. The vast majority (90%+) of Fed revenues come from open market operations, specifically the interest on the portfolio of Treasury securities as well as "capital gains/losses" that may arise from the buying/selling of the securities and their derivatives as part of Open Market Operations. The balance of revenues come from sales of financial services (check and electronic payment processing) and discount window loans.[168] The Board of Governors (Federal Reserve Board) creates a budget report once per year for Congress. There are two reports with budget information. The one that lists the complete balance statements with income and expenses as well as the net profit or loss is the large report simply titled, "Annual Report". It also includes data about employment throughout the system. The other report, which explains in more detail the expenses of the different aspects of the whole system, is called "Annual Report: Budget Review". These are comprehensive reports with many details and can be found at the Board of Governors' website under the section "Reports to Congress"[169]
One of the keys to understanding the Federal Reserve is the Federal Reserve balance sheet (or balance statement). In accordance with Section 11 of the Federal Reserve Act, the Board of Governors of the Federal Reserve System publishes once each week the "Consolidated Statement of Condition of All Federal Reserve Banks" showing the condition of each Federal Reserve bank and a consolidated statement for all Federal Reserve banks. The Board of Governors requires that excess earnings of the Reserve Banks be transferred to the Treasury as interest on Federal Reserve notes.[170][171]
Below is the balance sheet as of July 6, 2011 (in billions of dollars):
NOTE: The Fed balance sheet shown in this article has assets, liabilities and net equity that do not add up correctly. The Fed balance sheet is missing the item "Reserve Balances with Federal Reserve Banks" which would make the balance sheet balance.
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Analyzing the Federal Reserve's balance sheet reveals a number of facts:
In addition, the balance sheet also indicates which assets are held as collateral against Federal Reserve Notes.
Federal Reserve Notes and Collateral | ||
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Federal Reserve Notes Outstanding | 1128.63 | |
Less: Notes held by F.R. Banks | 200.90 | |
Federal Reserve notes to be collateralized | 927.73 | |
Collateral held against Federal Reserve notes | 927.73 | |
Gold certificate account | 11.04 | |
Special drawing rights certificate account | 5.20 | |
U.S. Treasury, agency debt, and mortgage-backed securities pledged | 911.50 | |
Other assets pledged | 0 |
The Federal Reserve System has faced various criticisms since its inception in 1913. These criticisms include the assertions that the Federal Reserve System violates the United States Constitution and that it impedes economic prosperity.
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Wikimedia Commons has media related to: Federal Reserve |
Wikiquote has a collection of quotations related to: Federal Reserve System |
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Look up cup in Wiktionary, the free dictionary. |
A cup is any of a variety of drinkware used to consume food or beverage. Cup or cups may also refer to:
In archaeology
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In other contexts:
This disambiguation page lists articles associated with the same title. If an internal link led you here, you may wish to change the link to point directly to the intended article. |
Ivanovic at the 2011 Hopman Cup. |
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Country | Serbia and Montenegro (2003–2006) Serbia (2006–present) |
---|---|
Residence | Basel, Switzerland |
Born | (1987-11-06) November 6, 1987 (age 24) Belgrade, SR Serbia, SFR Yugoslavia |
Height | 1.84 m (6 ft 1⁄2 in)[1][2] |
Weight | 69 kg (150 lb) |
Turned pro | August 17, 2003 |
Plays | Right-handed (two-handed backhand) |
Career prize money | US$ 9,205,362 |
Singles | |
Career record | 320 – 140 (69,8%) |
Career titles | 11 WTA, 5 ITF |
Highest ranking | No. 1 (June 9, 2008) |
Current ranking | No. 14 (May 28, 2012) |
Grand Slam Singles results | |
Australian Open | F (2008) |
French Open | W (2008) |
Wimbledon | SF (2007) |
US Open | 4R (2007, 2010, 2011) |
Other tournaments | |
Championships | SF (2007) |
Doubles | |
Career record | 25–30 |
Career titles | 0 |
Highest ranking | No. 50 (September 25, 2006) |
Current ranking | No. 239 (May 28, 2012) |
Grand Slam Doubles results | |
French Open | 1R (2005, 2007) |
Wimbledon | 3R (2005) |
US Open | 3R (2006) |
Last updated on: May 28, 2012. |
Ana Ivanovic (Serbian Cyrillic: Ана Ивановић, Ana Ivanović[3][4]; Serbian pronunciation: [âna iʋǎːnoʋitɕ] ( listen)) (born November 6, 1987, in Belgrade, SR Serbia, SFR Yugoslavia) is a former world no. 1 Serbian tennis player. As of May 28, 2012, she is ranked 14th on the Women's Tennis Association (WTA) rankings.[5] She beat Dinara Safina to win the 2008 French Open and was the runner-up in singles at the 2007 French Open[6] and the 2008 Australian Open.[7] Competing as a professional since 2003, she has won 11 WTA Tour singles titles. When on form, Ivanovic is known for her aggressive style of play.
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Ivanovic's mother Dragana (Драгана), a lawyer, supports her daughter during most of her matches. Her father Miroslav (Мирослав), a self-employed businessman, attends as many events as he possibly can. Ana has a younger brother, Miloš (Милош), with whom she loves to play basketball.[8]
Aside from her tennis career, Ivanovic also studies finance at a university in Belgrade and Spanish in her spare time.[9] Her inspiration to begin playing was Monica Seles, who at that time played for Yugoslavia.[10]
On September 8, 2007, Ivanovic became a UNICEF National Ambassador for Serbia, alongside Aleksandar Đorđević, Jelena Janković and Emir Kusturica. She takes a special interest in the fields of education and child protection. Ivanovic visited a primary school in Serbia during her inauguration and said that she is "also looking forward to going into the classroom and meeting many kids."[11]
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Ivanovic picked up a racket at the age of five after watching Monica Seles, a fellow Yugoslav, on television.[2] She started her career after memorizing the number of a local tennis clinic from an advertisement. At the time, she was forced to train during the morning to avoid bombardments. Later, she admitted that she trained in an abandoned swimming pool in the winter, as there were no other facilities. When she was 15, Ivanovic spent four hours in the locker room crying after a defeat – the first that her new manager had watched. She thought that Dan Holzmann, the manager in question, would drop her, thinking that she was not good enough to become a professional tennis player. He has stayed her manager to this day.
Ivanovic reached the final of the Junior Wimbledon tournament in 2004, losing to Kateryna Bondarenko.[12] In 2004, she went 26–0 on the ITF circuit, and won all five events that she entered, two of them as a qualifier. As a qualifier in Zürich, she overcame a 5–1 third set deficit along with two match points to defeat world no. 29 Tatiana Golovin 7–5,6–7,7–6. She then debuted in the qualifying draw of a Grand Slam at the US Open, where she was defeated by Lioudmila Skavronskaia after winning the first set 6–1 and having two match points on 5–4 in 3rd set. She eventually fell to a close loss, 6–1, 4–6, 5–7. Her first professional breakthrough occurred in the next match, when she took Venus Williams to two tiebreaks, before losing in straight sets in the second round of the Zürich Open. She had held several set points in both sets. She followed up her run in Zürich with a quarterfinal showing at Luxembourg the next week.
Ivanovic won her first career singles title, as a qualifier, in Canberra, Australia, after defeating Melinda Czink in the final. Her ranking continued to rise after wins over Svetlana Kuznetsova 6–3,3–6,7–5 in Miami, Nadia Petrova 6–4,7–5 also in Miami 6–2,6–4, and Vera Zvonareva in Warsaw, all of whom were top-10 players. Ivanovic lost to Amélie Mauresmo at the Australian Open in third round, Doha in third round after Ivanovic had 6–2,2–0 lead and in 3rd set had three break points for 5–2 lead, and Miami Masters in quarterfinals, before defeating her in the third round of the French Open 6–4,3–6,6–3. At that stage in her career it was arguably her biggest win.[13] Ivanovic eventually reached the quarterfinals of that tournament, where she lost to Petrova.[14] Later in the year, Ivanovic reached the semifinals of the Zurich Open and Generali Ladies Linz, losing to Patty Schnyder in both tournaments.Ivanovic finished the year as no. 16.
Ivanovic started the year at the Hopman Cup in Perth, Australia with fellow Serbian Novak Djoković, where the pair narrowly missed the final.[15] To start off her WTA year, she played at the Medibank International in Sydney where she once again defeated Amélie Mauresmo, this time in straight sets 6–2,7–5, before falling to Svetlana Kuznetsova in the quarterfinals 7–6,6–3 after having 5–2 lead in first set. A week later, she lost to Samantha Stosur in the second round of the Australian Open 6–3,7–5.
Ivanovic made it to the third round of the French Open, before losing to Anastasia Myskina. She progressed to the fourth round at Wimbledon, but lost to eventual champion and world no. 1 Amélie Mauresmo in straight sets 7–5,6–3 after beating no. 14 seed Dinara Safina 3–6,7–6,6–1.
Ivanovic made her breakthrough in August when she defeated former world no. 1 Martina Hingis 6–2,6–3 in the final of the Rogers Cup in Montreal before beating Jelena Janković 6–1,6–2, no. 14 seed Katarina Srebotnik 6–4,6–4 and top 10 player Dinara Safina 6–1,6–4. This ultimately led to her winning the United States Open Series, ahead of Kim Clijsters and Maria Sharapova. At the US Open, she lost to Serena Williams.
Ivanovic also played nine tournaments in doubles in 2006, teaming up with Maria Kirilenko and Sania Mirza. Ivanovic and Kirilenko made two semifinals and a final; they ended the year at number 17 in the annual race to the Championships. Ivanovic finished the year ranked world no. 14 in singles and world no. 51 in doubles.
Ivanovic started the year at the 2007 Medibank International where she beat no. 5 Nadia Petrova but lost to Nicole Vaidišová. Seeded 13th at the Australian Open, Ivanovic defeated Agnieszka Radwańska 6–2,3–6,6–2 in the second round, but later lost in the third round to Vera Zvonareva after she missed some opportunities. Immediately after this tournament, she announced that she had split with her coach David Taylor. Ivanovic then played in the 2007 Toray Pan Pacific Open. In the quarterfinals she beat no. 10 Jelena Janković 3–6,6–4,6–2, and in the semifinals she beat No. 1 Maria Sharapova 6–1, 0–1 when Sharapova was forced to retire, but she lost in the Final to Martina Hingis 4–6, 2–6.
At the Tier I Pacific Life Open in Indian Wells, California, she was defeated in the fourth round by Sybille Bammer 6–7,6–0,3–6 after easy wins over Vania King and Alicia Molik. Yaroslava Shvedova then defeated Ivanovic in the second round of the Tier I Sony Ericsson Open in Miami Masters. Later she played a tournament at Amelia Island where she lost in the semifinals to no. 19 and eventual champion Tatiana Golovin 4–6,6–3,4–6 after Ivanovic had break points in all games of serve for Tatiana. It was the first win for her in seven meetings. After she lost in the semifinals she won no. 9 Jelena Janković 7–5,6–3 in quarterfinals.
Ivanovic then returned to Europe to play two clay-court tournaments in preparation for the French Open. In Berlin at the Qatar Telecom German Open, she won her first Tier I clay court title, defeating world no. 4 Svetlana Kuznetsova in the final 3–6,6–4,7–6.It was very long and interesting match, in first set Kuznetsova was leading 5–1 and she officially won the set 6–3.In second set Ivanovic had 2–0 lead, after Kuznetsova equalized on 2–2, Ivanovic again broke for 4–2, but Kuznetsova equalized on 4–4 and Ivanovic officially won the second set 6–4.Third set was the longest one, Kuznetsova first broke Ana's serve for 2–1 lead, but Ana was strong and pulled for 5–3, even then the match wasn't finished because Ivanovic needed tie-break to finally finish the match.However, Ivanovic injured her ankle during the final, which forced her to withdraw from the Tier I Internazionali BNL d'Italia in Rome. The win in Berlin propelled her into the top ten of the WTA Rankings for the first time, at world no. 8.
Ivanovic had a six-match winning streak heading into the French Open and increased this streak to twelve by reaching the final. She won her first three matches with the loss of only nine games. In her second career quarterfinal at Roland Garros, Ivanovic defeated world no. 3 Kuznetsova 6–0,3–6,6–1, and she then beat world no. 2 Sharapova 6–2,6–1 in less than one hour in the semifinals. In the final, Ivanovic attempted to win her first Grand Slam singles title and complete a sweep of the top three players in the world. However, world no. 1 and two-time defending champion Justine Henin won the match.
At Wimbledon, Ivanovic defeated world no. 9 Nadia Petrova 6–1,2–6,6–4 in the fourth round, and saved three match points to defeat Nicole Vaidišová 4–6,6–2,7–5 in the quarterfinals. In the semifinals, three-time former Wimbledon champion Venus Williams defeated Ivanovic 6–2,6–4 after Ivanovic had a break of lead in the second set.
A persistent knee injury sustained at Wimbledon caused Ivanovic to withdraw from Serbian Fed Cup competition against Slovakia and two lead-up events to the US Open.[16] She returned to the tour at the East West Bank Classic in Carson, California, saving two match points in the semifinals with huge winner before defeating no. 3 Janković 4–6,6–3,7–5 in trilling match. In the final, Ivanovic defeated top 10 player Petrova to win the fourth singles title of her career, which raised her ranking to a career-high of world no. 4.
In Ivanovic's first three matches at the US Open, she lost only 10 games. Venus Williams then eliminated her for the second consecutive time at a Grand Slam tournament.
Ivanovic returned to Europe for three tournaments. At the Tier II Luxembourg Championships, Ivanovic qualified for the Sony Ericsson Championships by virtue of reaching the semifinals. In the final, Ivanovic rallied from 6–3, 3–0 down to defeat Daniela Hantuchová 3–6,6–4,6–3 in two hours and 25 minutes. This was her fifth career title. In the quarterfinals and semifinals she beat Tatiana Golovin 6–1,6–2 and Vera Zvonareva 6–4,6–2.
To end the year, Ivanovic played in the Sony Ericsson Championships in Madrid, Spain. Seeded fourth and assigned to the Red Group during the round-robin phase, she defeated world no. 2 Kuznetsova 6–1,4–6,7–5, after she had 4–0 and three break points for 5–0 in the third set she eventually won the set 7–5 and Hantuchová in straight sets 6–2,7–6.She qualified to semifinals and then Sharapova defeated Ivanovic in the final match of the round-robin stage. Because she finished second in her group, Ivanovic played world no. 1 Henin in the semifinals, in which the Belgian won 6–4,6–4.
Ivanovic finished the year with a career-high ranking of world no. 4.
Ivanovic started the year at the 2008 Medibank International where she made the quarterfinals, eventually losing to world no. 1 Justine Henin 2–6,6–2,4–6 despite having had break points on 4–4 in third set.As the fourth seed at the Australian Open, Ivanovic made it all the way to the finals, beating top 10 players Venus Williams for the first time in her career, 7–6,6–4, and coming back from a 0–6, 0–2 deficit against Daniela Hantuchova, eventually winning 0–6, 6–3, 6–4. She fell against world no.5 Maria Sharapova in a tight match 7–5,6–3 in the final. Her ranking rose to world no. 3 as a result of her performance at the tournament, the highest of her career at the time.
In Serbia's Fed Cup Europe/Africa Zone Group I D round-robin tie against Poland in Budapest, Ivanovic defeated Urszula Radwańska in straight sets 6–3,6–1. In Serbia's second round-robin tie against Romania, Ivanovic defeated Monica Niculescu 5–7,6–4,7–5 and then teamed with Jelena Janković to win the deciding doubles rubber against the Romanian team 2–6,7–6,7–6, after Janković lost her singles match. In the promotion playoff, Ivanovic beat Renée Reinhard 6–2,3–6,6–3 of the Netherlands, as Serbia advanced to the World Group II playoffs in April.
In March, Ivanovic defeated Svetlana Kuznetsova in the final of the Tier I Pacific Life Open in Indian Wells, California 6–4,6–3 before wins over top 15 players Francesca Schiavone 2–6,7–5,6–2 and Vera Zvonareva 6–1,6–4 and world no. 4 Jelena Janković 7–6,6–3 in the semifinals.In first set against Jelena she had 5–3 lead and even some set points on 6–5, but eventually won the set 7–6. She lost to Lindsay Davenport in the third round of the Sony Ericsson Open in Miami the following week in straight sets 6–4, 7–6
Ivanovic started her clay-court season as defending champion at the Qatar Telecom German Open in Berlin. She lost to Elena Dementieva 6–2,7–5 for the fourth time in four meetings in the semifinals after beating no. 9 Ágnes Szávay 3–6,6–4,6–3 in the quarterfinals. Ivanovic was seeded second at the 2008 French Open, where she defeated Petra Cetkovská 6–0,6–0 in fourth round, world no. 10 Patty Schnyder 6–3,6–2 in quatrefinals and world no. 3 Jelena Janković in a thrilling encounter in the semifinals 6–4,3–6,6–4. First Jelena had 4–2 lead, then Ivanovic was very near to winning match after 6–4,3–1 lead, then Janković had 4–6,6–3,3–1 after Ana came for 3–3 in third set and again lost her serve, but was able to win the set 6–4.The win guaranteed Ivanovic's ascent to world no. 1 the following week, regardless of her performance in the final. Nonetheless, she went on to defeat Dinara Safina in straight sets 6–4,6–3 in the final, winning her first (and to date, only) Grand Slam singles title.
At Wimbledon, Ivanovic had quick work of her first round match 6–1,6–2, only to encounter an inspired Nathalie Dechy in the second round. Ivanovic looked to be headed for a straight-sets win after having a 5–3 lead in first set, before Dechy eventually launched a comeback that saw her produce two match points, Ivanovic swept the first away, then saved the second matchpoint with a netcord ball, eventually prevailing 6–7,7–6,10–8. She fell against unseeded wildcard Zheng Jie of China in straight sets.
Ivanovic started the summer hard-court season with a third-round loss at the Rogers Cup in Montreal to Tamira Paszek 2–6,6–1,2–6. Ivanovic, bothered by a sore thumb sustained during practice two weeks before Montreal,[17] withdrew from the East West Bank Classic in Los Angeles. Her withdrawal saw her lose the world no. 1 ranking to Janković. The thumb injury also caused her to withdraw from the Summer Olympics in Beijing, which Ivanovic described as "one of the worst moments of her career."[18] Ivanovic, having reclaimed her world no. 1 ranking on August 18, was the top-seeded player at the US Open,[19] but lost to Julie Coin 3–6,6–4,3–6 in very exciting and high-quality second round match. The loss was the earliest defeat of the top-seeded player at the US Open since the 1973 tournament.[20]
In her first match after the US Open, at the Tier I Toray Pan Pacific Open in Tokyo, Ivanovic was defeated by Nadia Petrova 1–6,6–1,2–6 of Russia in three sets, bringing her win-loss record since the French Open to 4–4. Ivanovic later told the press that she was "just happy to be back injury-free" and that she needed to "play more matches get back into rhythm."[21] Ivanovic then played in Beijing and after two great results she lost to Zheng Jie 6–7(6),6–2,4–6 match after having a break in first and third set and winning 16 more points than her opponent.
Then she came back to Europe to play three more tournaments, first in Moscow where she lost to Dominika Cibulkova 6–2,2–6,7–6 after having two match points.In Zurich open she lost in semifinal to Venus Williams 6–4,3–6,4–6 after leading 3–1 in third set before two easy wins over Marion Bartoli 6–2,6–4 and Petra Kvitova 6–1,6–4.Ivanovic played the Generali Ladies Linz in Linz torunament and was the top seed. She won the tournament by crushing top 10 players Vera Zvonareva 6–2,6–1 and Agnieszka Radwańska 6–2,3–6,7–5 in final and semifinal.
At the year-end Sony Ericsson Championships in Doha, Qatar, Ivanovic was seeded fourth. In her first round-robin match, she was defeated by world no. 1 Janković after she won the best point of the year[citation needed], hot shot. Her next match was against Zvonareva, to whom she also lost in three exciting sets. She withdrew from her final match against Kuznetsova because of a virus.[22]
At the Australian Open, Ivanovic was seeded fifth and won her first two matches in straight sets before losing to 29th seed Russian Alisa Kleybanova in the third round.
Ivanovic took part in Serbia's Fed Cup win in the World Group II tie against Japan. She defeated Ai Sugiyama and Ayumi Morita to help Serbia to a 4–1 win. At the Barclays Dubai Tennis Championships, a Premier 5 event, she lost to Serena Williams in the quarterfinals. Around this time, Ivanovic began working with her new coach Craig Kardon, after parting with former coach Sven Groeneveld.[23]
At the BNP Paribas Open in Indian Wells, California, where she was defending champion, Ivanovic advanced to the finals, before losing to Vera Zvonareva. In Miami, Ivanovic lost in the third round to Ágnes Szávay. In April, Ivanovic took part in Serbia's Fed Cup World Group Play-offs against Spain. She defeated Anabel Medina Garrigues to help Serbia gain promotion to the World Group with a 4–0 win.
At the 2009 French Open, Ivanovic won her first three matches in straight sets, before losing to Victoria Azarenka in the fourth round. This early loss caused Ivanovic to fall out of the top ten for the first time since May, 2007. After the loss, Ivanovic announced that she would cease working with Craig Kardon, and would be participating in the adidas Player Development Program, where she would be coached by Sven Groeneveld, Darren Cahill, Mats Merkel and Gil Reyes.[24]
At Wimbledon, Ivanovic was seeded 13th. She faced two match points against Lucie Hradecká, before prevailing. She then took down Sara Errani and 18th seed Samantha Stosur in the second and third rounds in straight sets, before retiring against third seed and eventual finalist Venus Williams.
At the U.S. Open, Ivanovic lost in the first round of a Grand Slam for the first time in her career by succumbing to Kateryna Bondarenko. After the match, former Wimbledon champion Pat Cash criticized Ivanovic's new service motion, stating that watching it was a "painful experience" and that it "[weakened] her threat." He also felt that Ivanovic was "over-analysing" her game and that her main problem was "her lack of confidence."[25]
At the Premier 5 Toray Pan Pacific Open in Tokyo, Ivanovic suffered her third successive defeat by losing to Lucie Šafářová in the first round. Citing an upper respiratory tract infection, Ivanovic pulled out of the China Open and announced on her website that she was taking the rest of the year off.
She finished the year with a 24–14 match record, her worst since she turned pro, and did not win any titles. Ivanovic only reached three quarterfinals, one semifinal, and one final, and only won back-to-back matches six times. Ivanovic ended the year ranked 21, the first time she had been ranked outside the top 20 since July 2005.
Ivanovic started the year at the 2010 Brisbane International. Seeded third, Ivanovic reached her first semifinal since Indian Wells in 2009. She eventually bowed out to wildcard Justine Henin in Henin's first tournament since her return from retirement. Ivanovic was seeded 20th at the 2010 Australian Open, but lost to Gisela Dulko in the second round in three sets.
Ivanovic then participated in the opening round of the 2010 Fed Cup in Serbia's tie against Russia. She went 0–2 in her singles matches, losing to Svetlana Kuznetsova and Alisa Kleybanova, both in straight sets. She partnered with Jelena Janković in the deciding doubles match, but they fell to Kuznetsova and Kleybanova. Ivanovic then withdrew from Dubai with shoulder tendinitis.
Ivanovic announced that she would be working with Steffi Graf's former coach Heinz Gunthardt on a trial basis during the spring North American hard-court season, suspending her relationship with the Adidas Player Development Program indefinitely. In her first match as Gunthardt's pupil, a one-set semifinal against reigning US Open champion Kim Clijsters in the 2010 Billie Jean King Cup at Madison Square Garden, Ivanovic lost in a tiebreak, despite having held match point. After the match, Ivanovic stated that she had noted improvements in her game.
Despite her improvements reflected in the BNP Paribas Showdown, Ivanovic lost her opening match to world no. 63 Anastasija Sevastova at the 2010 BNP Paribas Open. Never before had she suffered four consecutive losses. By also losing a huge number of ranking points, Ivanovic dropped out of the top 50 for the first time since March 2005. Seeded 25th at the Sony Ericsson Open in Miami, Ivanovic won her first match since the Australian Open, but then lost to Agnieszka Radwańska in the third round.
In her first clay-court event of the year at the Porsche Tennis Grand Prix in Stuttgart, Ivanovic suffered a second consecutive loss to Radwańska. In her first doubles match since June 2009, partnering Andrea Petkovic, she lost to Borwell and Kops-Jones.
Unseeded at the 2010 Internazionali BNL d'Italia, Ivanovic had her best week of tennis in nearly two years. She stunned top-10 players Victoria Azarenka and Elena Dementieva, and top-20 player Nadia Petrova, all in straight sets, before losing to eventual champion María José Martínez Sánchez in the semifinals. She was granted a wildcard into the Mutua Madrileña Madrid Open in Madrid, and received a bye in the first round due to her semifinal appearance at the Italian Open. She was the first unseeded wildcard to receive a first-round bye in the history of the WTA Tour. She lost in the second round to Jelena Janković, despite leading by a set and a break. Ivanovic entered the 2010 French Open unseeded at a Grand Slam for the first time since 2005. She fell to Alisa Kleybanova in the second round.
In the UNICEF Open, Ivanovic fell to seventh-seeded German Andrea Petkovic in the second round. Ivanovic was defeated in the first round of Wimbledon by 13th seed Shahar Pe'er, and as a consequence saw her ranking drop to world no. 64.
In the opening round of the Bank of the West Classic at Stanford University, Ivanovic avenged her 2009 Australian Open and 2010 French Open defeats to Alisa Kleybanova, before losing in the next round to Marion Bartoli in straight sets. At the Mercury Insurance Open, Ivanovic once again suffered a first-round loss to Shahar Pe'er. At the Western and Southern Financial Group Women's Open, she rallied from a set and a break down to beat Victoria Azarenka in three sets. Ivanovic retired against Kim Clijsters in the semifinals due to a foot injury. Her ranking dramatically improved to world no. 39. The injury caused her to withdraw from the Pilot Pen tournament held in New Haven.
Unseeded at the 2010 US Open, Ivanovic breezed into the fourth round with straight-set victories, before losing to defending and eventual champion Kim Clijsters.
Ivanovic went into the Hansol Korea Open as the seventh seed, but lost her opener to Vera Dushevina. Ivanovic then defeated Kleybanova, the Korea Open champion, in the first round of the 2010 Toray Pan Pacific Open, before again losing to Bartoli in straight sets. Ivanovic avenged her losses to Bartoli at the 2010 China Open, beating the Frenchwoman in straight sets in the first round. On her way to the quarterfinals, Ivanovic scored another top-10 victory by defeating Elena Dementieva for the second time in 2010. Ana fell to world no. 1 Caroline Wozniacki. By virtue of her quarterfinal finish, Ivanovic re-entered the top 30.
Entering the 2010 Generali Ladies Linz as a wildcard, Ivanovic defeated Patty Schnyder in the finals, 6–1, 6–2, in just 47 minutes of play. Ana headed to the 2010 BGL Luxembourg Open as the fourth seed, where she breezed right through to the quarterfinals, before falling to eighth seed Julia Görges. Meanwhile, after making the quarterfinals of the doubles tournament with Yanina Wickmayer, they fell to fourth seeds Lucie Hradecká and Renata Voráčová.
Ivanovic revealed that she had ended her coaching relationship with Swiss star Heinz Gunthardt, because Gunthardt mixed his interest in tennis with being a Swiss television commentator.
By virtue of her title in Linz, Ivanovic qualified for the last tournament of the season, the 2010 Commonwealth Bank Tournament of Champions. She made it to the finals, where she defeated Russian Alisa Kleybanova for her tenth career title and her second of the year. With her title in Bali, Ivanovic achieved a year-end ranking of no. 17, her fifth finish in the top 20.
Ivanovic started the year with the 2011 Hopman Cup in Perth, Australia. She competed along with Novak Djokovic under the Serbian flag. Ana and Djokovic swept their first two ties against Kazakhstan and Australia, 3–0, but fell against Belgium, 1–2. They did qualify for the final, but due to an injury sustained during Ivanovic's match against Justine Henin, Serbia was forced to withdraw. Along with the Hopman Cup, Ivanovic also withdrew from Sydney.
Ivanovic was seeded 19th at the 2011 Australian Open, where she lost to Ekaterina Makarova, 6–3, 4–6, 8–10, in the first round in 2 hours and 47 minutes. Ivanovic then played in the PTT Pattaya Open, where she fell in the quarterfinals to fifth seed Roberta Vinci in straight sets, 5–7, 3–6. She headed to Dubai as the 14th seed, where she lost against Patty Schnyder in three sets. She stated the loss was in part because of the abdominal injury sustained in the beginning of the season, and she subsequently withdrew from Doha.
Ivanovic then headed to Indian Wells, where she was seeded 19th. After losing her doubles match with Petkovic in a tight three-setter, she lost to Marion Bartoli in the quarterfinals.
Ivanovic then played in the 2011 Sony Ericsson Open, where she was seeded 19th. She lost against defending champion Kim Clijsters in her fourth-round match, despite having a 5–1, 40–0 lead in the third set and having five match points. She partnered with Petkovic in doubles where, after scoring a first round win, they stunned sixth-seeded Benesova and Zahlavova Strycova. They withdrew from the doubles competition after Ivanovic lost to Clijsters.
Ivanovic withdrew from the 2011 Andalucia Tennis Experience tournament to better prepare herself for the upcoming clay-court season.[citation needed] However, she joined Serbia in the 2011 Fed Cup event. Ivanovic scored a point for Serbia by beating Daniela Hantuchová in straight sets, 6–2, 6–4, but had to retire in her next match against Dominika Cibulková, as she renewed an injury from the beginning of the season. Despite that, Serbia beat Slovakia in the deciding doubles rubber, 3–2.[citation needed]
Ivanovic's next scheduled tournament was the 2011 Mutua Madrileña Madrid Open, where she was seeded 15th. After her early exit in the first round, losing to Bethanie Mattek-Sands, Ivanovic headed to 2011 Internazionali BNL d'Italia, where she was 13th seed. Ivanovic lost in the second round to Yanina Wickmayer in three sets. Ivanovic withdrew from Strasbourg due to a minor wrist injury. Ana then lost to Johanna Larsson, 6–7, 6–0, 2–6, in her first round match at the 2011 French Open. Ivanovic had a slight resurgence in Birmingham, reaching the semifinals, but lost to Daniela Hantuchová in three sets. Ivanovic lost to Venus Williams in the second round at Eastbourne.
She beat Melanie Oudin in the first round at Wimbledon in straight sets. After her win over Eleni Daniilidou in the second round, also in straight sets, she fell in the third round. She was beaten by Petra Cetkovská who had beaten 13th seed Agnieszka Radwańska in round two. After Wimbledon, Ivanovic hired Nigel Sears, the head of women's tennis at the Lawn Tennis Association, as her coach.[26] In Stanford, Ivanovic fell against Japan's Ayumi Morita in her opening match, 3–6, 5–7. As the fifth seed in Carlsbad, she received a first-round bye. In round two, she avenged the previous week's loss by beating Ayumi Morita, 6–1, 7–6, despite trailing 0–5 in the second set. In the third round, Ana cruised past Alberta Brianti of Italy, 6–1, 6–2. Ivanovic then took on Shuai Peng in the quarterfinals and won in two sets. In the semifinals, she lost against top seed Vera Zvonareva, 7–5, 4–6, 4–6. After losing to Roberta Vinci in her third round match at the Roger's Cup, Ana, who teamed with Andrea Petkovic, had to withdraw in the middle of her doubles match while playing against fourth-seeded Azarenka and Kirilenko. At the US Open, Ivanovic defeated Ksenia Pervak of Russia in the first round. She received a walkover from Petra Cetkovská and advanced to the third round. In the third round, Ivanovic defeated Sloane Stephens, 6–3, 6–4, to advance to the fourth round, where she faced Serena Williams, losing in straight sets 3–6, 4–6, in just 74 minutes. She also played alongside fellow countryman Nenad Zimonjic in the mixed doubles competition for the first time, but fell against Mariusz Fyrstenberg and Yung-jan Chan, 3–6, 4–6.
During the Toray Pan Pacific Open Ivanovic recorded victories in straight sets over Anastasia Rodionova and wildcard Laura Robson, before losing to Maria Kirilenko in the third round.
At the China Open Ivanovic defeated Kimiko Date-Krumm and Svetlana Kuznetsova in straights to reach the third round, where she beat third seed and world no. 4 Vera Zvonareva, 6–2, 6–1. She then faced Agnieszka Radwańska in the quarter-finals. She lost the first set 3–6 and was down 2–3 when she had to retire because of a back injury. Ivanovic received a wild card to play in the 2011 Commonwealth Bank Tournament of Champions, which she won last year. In her first round she played Italy's Roberta Vinci and defeated her 6–3 6–3. In the semi-finals she beat Russian Nadia Petrova 6–1, 7–5. In the final, she captured her 11 WTA title by beating Anabel Medina Garrigues in straights sets, 6–3, 6–0. This is the first time she had ever defended her title in a tournament.
Ivanovic began her season at the 2012 Brisbane International where she was defeated in the second round by fifth seed Kim Clijsters in three sets, 1–6, 6–1, 3–6 despite leading 3–0 in the final set. Ivanovic's next event was the Apia International Sydney but she lost in the first round to Lucie Šafářová in straight sets, 6–7, 2–6.
Ana then headed over to the 2012 Australian Open where she was seeded 21st. She did not drop a set en route to the fourth round, defeating Lourdes Domínguez Lino, Michaella Krajicek and Vania King along the way. Ana lost in straight sets to World No. 2 Petra Kvitová, 6–2, 7–6 in the fourth round. She cracked the Top 20 after her Round of 16 run.
Ivanovic's next tournament was the 2012 Qatar Total Open. She fell in the second round to Petra Cetkovska in straight sets. Ana then went on unseeded in Dubai, where she upset Francesca Schiavone, and beat Maria Kirilenko, before falling to 3rd seed Caroline Wozniacki.
Ana went over to the 2012 BNP Paribas Open as the 15th seed. She was able to make a run all the way to the semifinals, posting victories over Caroline Wozniacki and Marion Bartoli, who were both in the Top 7. She fell against Maria Sharapova, retiring after being down 4–6, 1–0 in the semifinals. This caused her to enter the Top 10 for the race to the 2012 WTA Tour Championships. She then headed over to Miami, for the 2012 Sony Ericsson Open as the 15th seed, where she made it to the Round of 16, beating Daniela Hantuchova and Vania King in straight sets en route, before eventually falling to seven-time grand slam champion Venus Williams, despite holding a one set lead. She still cracked the Top 15 for the first time since 2009 and became Serbian No.1 for the first time since 2008, this time placing 14th after Miami.
She will now head over to Moscow for the 2012 Fed Cup semifinals, before resuming her 2012 season at the 2012 Porsche Tennis Grand Prix. During the 2012 Porsche Tennis Grand Prix she fell to Mona Barthel in two tight sets. She than headed over to the newly blue clayed Madrid where she defeated qualifier Mathilde Johannson 6–4 6–1 in the first round. Next up is Russia's Nadia Petrova.
In Roland Garros 2012, she defeated Lara Arruabarrena Vecino (6-1, 6-1) in straight sets in first round and defeated Shahar Peer in the second round.
Ivanovic endorsed Nike apparel and shoes at the beginning of her professional career,[27] but at the beginning of 2006 switched to rival Adidas.[28] Ivanovic then signed a lifetime contract with the company. Ivanovic will become an Ambassador for Adidas once she retires from competitive tennis. She is believed to be the youngest athlete, male or female, to sign a contract of such longevity.[29] She started with the Wilson racquets, eventually using the nCode nBlade.[30] Since the beginning of 2008, Ivanovic has used Yonex racquets. She previously used the RQiS 1 Tour XL 95, but at the beginning of the Western and Southern Financial Group Women's Open 2010 in Cincinnati switched to a prototype version of a new Yonex racket.[31] Ivanovic plays with the Yonex EZONE 100 model.
Ivanovic is an offensive baseliner who is notable for her aggressive play. In 2007 and 2008, Ivanovic was regarded as one of the best competitors on the women's tour.[citation needed] After winning the 2008 French Open and becoming no. 1, Ivanovic endured a decline in form. Many critics attributed this to lack of confidence. At the 2010 Australian Open, Hall of Famer Martina Navratilova commented that, "while she has absolutely no confidence in herself, she still fights till the last point." She has since made some improvements to her playing style after appointing a new coach in 2010. As a result, she started to play with more confidence and won matches more consistently.
Ivanovic's serve is a powerful weapon. She hit a 124.9 mph (201.0 km/h) serve at the French Open in 2007, the fifth fastest serve of all time on the WTA Tour.[32] As of late, however, her serve has become unreliable, mostly due to technical issues with her ball toss. The success of her ball toss is directly associated with her nerves. During the French Open final in 2007, Ivanovic was overcome with nerves and her toss went astray. During Ivanovic's slump in play in 2009, her serve became gradually less effective as her confidence diminished. Ana indicated in 2010 she is confident she has rectified these problems.[33]
Another one of Ivanovic's strengths is her powerful forehand. A flat stroke, hit with not a lot of topspin which gives it its power,[34] it has been considered to be one of the best forehands in the game.[35] Ivanovic tends to hit more winners of this wing. Her backhand, although not as big as her forehand, has improved over the years. Ivanovic's movement and net play were once considered to be her weaknesses, but they have both improved over the years. She is considered now to be considerably faster than when she started playing professional tennis.[citation needed]
Ivanovic's best surface is the clay court, where her height allows her to strike clean winners off of high-bouncing balls. Nonetheless, she is capable of performing well on hard and grass courts as well. When she launched her re-branded site during 2010, she stated in her bio that she likes all surfaces.[10]
Ivanovic has won the following awards:[10]
W | F | SF | QF | #R | RR | Q# | A | P | Z# | PO | SF-B | F | NMS |
Won tournament, or reached Final, Semifinal, Quarterfinal, Round 4, 3, 2, 1, played in Round Robin or lost in Qualification Round 3, Round 2, Round 1, Absent from a tournament or Participated in a team event, played in a Davis Cup Zonal Group (with its number indication) or Play-off, won a bronze or silver match at the Olympics. The last is for a Masters Series/1000 tournament that was relegated (Not a Masters Series).
Tournament | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | SR | W–L | ||||||
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Grand Slam Tournaments | ||||||||||||||||||
Australian Open | A | A | 3R | 2R | 3R | F | 3R | 2R | 1R | 4R | 0 / 8 | 17–8 | ||||||
French Open | A | A | QF | 3R | F | W | 4R | 2R | 1R | 3R | 1 / 8 | 25–7 | ||||||
Wimbledon | A | A | 3R | 4R | SF | 3R | 4R | 1R | 3R | 0 / 7 | 17–7 | |||||||
US Open | A | LQ | 2R | 3R | 4R | 2R | 1R | 4R | 4R | 0 / 8 | 13–8 | |||||||
Win–Loss | 0–0 | 0–1 | 9–4 | 8–4 | 16–4 | 16–3 | 8–4 | 5–4 | 5–4 | 5–2 | 1 / 31 | 71–30 | ||||||
Year-End Championship | ||||||||||||||||||
WTA Tour Championships | A | A | A | A | SF | RR | A | A | A | 0 / 2 | 2–4 | |||||||
Tournament of Champions | Not Held | A | W | W | 2 / 2 | 6–0 | ||||||||||||
Career Statistics | ||||||||||||||||||
Titles–Finals | 0–0 | 0–0 | 1–1 | 1–1 | 3–5 | 3–4 | 0–1 | 2–2 | 1–1 | 0–0 | N/A | 11–15 | ||||||
Overall Win–Loss | 12–5 | 37–5 | 40–14 | 35–18 | 51–18 | 38–15 | 24–14 | 33–20 | 32–20 | 20–12 | N/A | 322–141 | ||||||
Year End Ranking | 705 | 97 | 16 | 14 | 4 | 5 | 22 | 17 | 22 | – |
Ivanovic has appeared as a character in Smash Court Tennis 3, released in 2007, Virtua Tennis 2009, released in 2009, Grand Slam Tennis for Wii, also released in 2009, Top Spin 4 and Virtua Tennis 4 both released in 2011. She is also featured in Grand Slam Tennis 2, released in 2012.[36] She stars, among others, alongside Roger Federer, Rafael Nadal, Lindsay Davenport, Anna Chakvetadze, Venus Williams and Maria Sharapova.
Ana has appeared in a song called "Hurricane Ana," produced by Serbian rapper Filip Filipi and Collie Buddz.[37] Also, she appeared on a number of international magazines like FHM (Germany, United Kingdom, Australia), Cosmopolitan (Serbia), Vanidades (Mexico), Grazia (Serbia), The Best Shop (Serbia), Sports Illustrated (South Africa) and others.
Wikimedia Commons has media related to: Ana Ivanović |
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Persondata | |
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Name | Ivanovic, Ana |
Alternative names | Ивановић, Ана |
Short description | Serbian tennis player |
Date of birth | November 6, 1987 |
Place of birth | Belgrade, Serbia |
Date of death | |
Place of death |
Petra Kvitová at the 2011 Wimbledon Championships |
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Country | Czech Republic |
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Residence | Fulnek, Czech Republic |
Born | (1990-03-08) 8 March 1990 (age 22) Bílovec, Czechoslovakia |
Height | 1.83 m (6 ft 0 in) |
Weight | 68 kg (150 lb) |
Turned pro | 2006 |
Plays | Left-handed (two-handed backhand) |
Career prize money | US$ 6,948,498 |
Singles | |
Career record | 218–101 |
Career titles | 7 WTA, 7 ITF |
Highest ranking | No. 2 (31 October 2011)[1] |
Current ranking | No. 4 (28 May 2012)[1] |
Grand Slam Singles results | |
Australian Open | SF (2012) |
French Open | 4R (2008, 2011) |
Wimbledon | W (2011) |
US Open | 4R (2009) |
Other tournaments | |
Championships | W (2011) |
Doubles | |
Career record | 9–24 |
Career titles | 0 |
Highest ranking | No. 196 (28 February 2011) |
Grand Slam Doubles results | |
Australian Open | 2R (2011) |
Petra Kvitová (Czech pronunciation: [ˈpɛtra ˈkvɪtovaː], English: /kəˈvɪtəvə/; born 8 March 1990) is a Czech professional tennis player. Known for her powerful left-handed shots and variety, she has won seven WTA singles titles. She reached her career-high ranking of world no. 2 in October 2011, and is currently ranked world no. 4.
Kvitová won the 2011 Wimbledon Championships and the 2011 WTA Tour Championships singles titles, becoming the first Grand Slam event winner born in the 1990s, and the third player to win the WTA Championships in her first attempt. She also reached the semifinals of the 2010 Wimbledon Championships and the 2012 Australian Open.
Contents |
Petra Kvitová was born to Jiří Kvita[2] and Pavla Kvitová in Bílovec, Czech Republic (in 1990 still in Czechoslovakia). Her father Jiří introduced her to tennis.[3] During her childhood, she admired Czech player Martina Navratilova. Kvitová trained in her hometown until the age of 16, and was then encouraged by an instructor to pursue a professional career in tennis.[4]
Kvitová is known for her fast left-handed serve. At the 2011 Wimbledon Championships, she had 36 aces, the third-most of any woman.[5] She is also noted for her heavy forehand, backhand, variety, and timing, and is known to make up for her lack of speed by playing close to the baseline.[6][7]
Kvitová began 2008 by upsetting Anabel Medina Garrigues in France and former world no. 1 Venus Williams in Memphis, reaching the second rounds of both tournaments.[8] She reached the fourth round of her first Grand Slam tournament, the French Open, in which she lost to Kaia Kanepi in three sets. She advanced to the quarterfinals of the 2008 Zurich Open as a qualifier, thus placing her in the top 50 for the first time.[8]
Kvitová won her first career title in the 2009 Moorilla Hobart International, defeating Alona Bondarenko, Anastasia Pavlyuchenkova, Virginie Razzano, and Iveta Benešová. After suffering consecutive first-round losses in the Australian Open, the Open GDF Suez, and Dubai, she reached the third round in Indian Wells, losing to eventual champion Vera Zvonareva.[9] She withdrew from the 2009 French Open due to an ankle injury and lost in the first round of Wimbledon. At the 2009 US Open, she defeated then-world no. 1 Dinara Safina in the third round in three sets, before losing to Yanina Wickmayer in the fourth. Kvitová was ranked 71 places lower than Safina at the time. At the Generali Ladies Linz, Kvitová reached her second final of the year, losing in straight sets to Wickmayer.[9]
She reached the semifinals of the 2010 Cellular South Cup, and lost to eventual champion Maria Sharapova.[10] She went on to reach the semifinals of the 2010 Wimbledon Championships, defeating Sorana Cîrstea, Zheng Jie, Victoria Azarenka, Caroline Wozniacki, and Kaia Kanepi, before losing to then-world no. 1 and defending champion Serena Williams, 6–7, 2–6. She was then guaranteed to reach the top 30 for the first time. Following Wimbledon, she broke a six-match losing streak at the 2010 US Open, when she defeated Lucie Hradecká, and Elena Baltacha, losing to eventual champion Kim Clijsters in the third round.[10]
Kvitová started 2011 by winning her second career title at the Brisbane International, defeating Andrea Petkovic, 6–1, 6–3, in the final, and also earning wins over third seed Nadia Petrova and fifth seed Anastasia Pavlyuchenkova. With the win, she achieved the ranking of world no. 28.[11]
Kvitová was the 25th seed at the 2011 Australian Open, where she lost a quarterfinal match to Vera Zvonareva. Her strong run ensured that she would reach a new ranking of world no. 18.[12]
In Paris, Kvitová won her second title of the year by defeating newly crowned world no. 1 and 2011 Australian Open champion Kim Clijsters in straight sets, 6–4, 6–3.[13] Once again, Kvitová's ranking rose to a new high of world no. 14. She led the Czech Fed Cup team to the final round, with semifinal wins over Yanina Wickmayer and Kirsten Flipkens.[14]
She won the title at the 2011 Mutua Madrid Open, defeating Alexandra Dulgheru, Chanelle Scheepers, second seed Vera Zvonareva, Li Na, and Victoria Azarenka.[15] She made her top-10 debut after the tournament at world no. 10. The following week, because Jelena Janković failed to defend her points in the 2011 Internazionali BNL d'Italia, Kvitová moved one place up to no. 9.[12]
Kvitová was the ninth seed at the 2011 French Open. She defeated Gréta Arn, Zheng Jie, and Vania King in straight sets, before losing to eventual champion Li Na in the fourth round, despite leading 3–0 in the deciding set.[16]
Kvitová won her first Grand Slam title as the eighth seed at the 2011 Wimbledon Championships. She defeated Alexa Glatch, Anne Keothavong, 29th seed Roberta Vinci, 19th seed Yanina Wickmayer, 32nd seed Tsvetana Pironkova, and fourth seed Victoria Azarenka on the way to the final, where she beat fifth seed Maria Sharapova in straight sets.[17] She became the first left-handed female player to win the singles title since Martina Navratilova in 1990, the first Czech player to win a Grand Slam singles title since Jana Novotna won Wimbledon in 1998, and the first Grand Slam tournament winner of either gender to be born in the 1990s.[18][19]
Following Wimbledon, Kvitová lost to Andrea Petkovic during two matches of the US Open Series. She was then upset by Alexandra Dulgheru at the 2011 US Open, becoming the first Grand Slam champion to lose in the first round of the following Grand Slam without winning a set.[20]
Kvitová's form improved at the 2011 Toray Pan Pacific Open, where she lost to Vera Zvonareva in the semifinals, thus reaching the world no. 5 ranking.
At the 2011 Generali Ladies Linz, she beat Rebecca Marino, Patricia Mayr-Achleitner, Daniela Hantuchova, Jelena Jankovic, and Dominika Cibulková to collect her fifth title of the season.[12]
She won the 2011 WTA Tour Championships in Istanbul, becoming the third player to win the title in her first attempt.[21] During the round-robin matches, she beat Vera Zvonareva, Caroline Wozniacki, and Agnieszka Radwańska in straight sets, putting her through to the semifinals. Her next opponent was Samantha Stosur, whom she beat to reach the final—a match against Victoria Azarenka for the world no. 2 ranking, which Kvitová won in three sets.[12] She concluded 2011 by helping the Czech Republic team win the Fed Cup and was named WTA Player of the Year and ITF Women's World Champion.[22]
At the beginning of 2012, Kvitová was widely expected to reach the world no. 1 ranking.[23][24] She stated that attaining the position "would be nice," but that her priority was to improve her game.[23] Kvitová opted not to defend her title and ranking points in Brisbane, choosing instead to participate in the Hopman Cup exhibition with Tomáš Berdych. The pair went on to win the title, defeating France in the final. She won all of her singles matches at the event, defeating Tsvetana Pironkova, Bethanie Mattek-Sands, Caroline Wozniacki, and Marion Bartoli.[25] Her next tournament was the 2012 Sydney International, where she lost in the semifinals against Li Na. At the 2012 Australian Open, Kvitová defeated Vera Dushevina, Carla Suarez Navarro, Maria Kirilenko, Ana Ivanović, and Sara Errani to advance to the semifinals, where she lost in three sets to Maria Sharapova.[25]
She continued her long run of wins in singles matches indoors (32 straight matches) with her four victories in Fed Cup against Germany and Italy in 2012.
In Indian Wells, Kvitová lost in the third round to Christina McHale in three sets. In Key Biscayne, she exited in the second round after losing in three sets to Venus Williams. In the Porsche Tennis Grand Prix, she lost in the semifinals to Maria Sharapova.[25] At the 2012 Mutua Madrid Open she was the defending champion, but she lost in the second round to Lucie Hradecká.
Outcome | Year | Championship | Surface | Opponent | Score |
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Winner | 2011 | Wimbledon | Grass | Maria Sharapova | 6–3, 6–4 |
Tournament | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | SR | W–L | ||||||||||||
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Grand Slam Tournaments | |||||||||||||||||||||
Australian Open | A | A | LQ | 1R | 2R | QF | SF | 0 / 4 | 10–4 | ||||||||||||
French Open | A | A | 4R | A | 1R | 4R | 0 / 3 | 6–3 | |||||||||||||
Wimbledon | A | A | 1R | 1R | SF | W | 1 / 4 | 12–3 | |||||||||||||
US Open | A | LQ | 1R | 4R | 3R | 1R | 0 / 4 | 5–4 | |||||||||||||
Win–Loss | 0–0 | 0–0 | 3–3 | 3–3 | 8–4 | 14–3 | 5–1 | 1 / 15 | 33–14 |
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Wikimedia Commons has media related to: Petra Kvitová |
Awards | ||
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Preceded by Melanie Oudin |
WTA Newcomer of the Year 2010 |
Succeeded by Irina-Camelia Begu |
Preceded by Kim Clijsters |
WTA Player of the Year 2011 |
Succeeded by Incumbent |
Preceded by Francesca Schiavone |
WTA Most Improved Player 2011 |
Succeeded by Incumbent |
Preceded by Elena Dementieva |
Karen Krantzcke Sportsmanship Award 2011 |
Succeeded by Incumbent |
Preceded by First title |
WTA Fan Favorite Breakthrough Player 2011 |
Succeeded by Incumbent |
Preceded by Caroline Wozniacki |
ITF World Champion 2011 |
Succeeded by Incumbent |
Preceded by Martina Sáblíková |
Czech Athlete of the Year 2011 |
Succeeded by Incumbent |
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Name | |
Alternative names | |
Short description | Czech tennis player |
Date of birth | |
Place of birth | |
Date of death | |
Place of death |