FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks July 24, 2008 1. Factors Affecting Reserve Balances of Depository Institutions Millions of dollars Reserve Bank credit, related items, and Averages of daily figures reserve balances of depository institutions at Week ended Change from week ended Wednesday Federal Reserve Banks Jul 23, 2008 Jul 16, 2008 Jul 25, 2007 Jul 23, 2008 Reserve Bank credit 882,978 - 5,440 + 32,967 882,395 Securities held outright 479,089 + 85 - 311,605 479,121 U.S. Treasury (1) 479,089 + 85 - 311,605 479,121 Bills (2) 21,740 0 - 255,279 21,740 Notes and bonds, nominal (2) 412,392 0 - 62,280 412,392 Notes and bonds, inflation-indexed (2) 39,171 0 + 4,712 39,171 Inflation compensation (3) 5,787 + 86 + 1,243 5,818 Federal agency (2) 0 0 0 0 Repurchase agreements (4) 104,786 - 6,357 + 85,929 103,750 Term auction credit 150,000 0 + 150,000 150,000 Other loans 16,510 + 2,209 + 16,271 17,830 Primary credit 16,381 + 2,465 + 16,378 17,675 Secondary credit 34 - 245 + 34 60 Seasonal credit 96 - 2 - 140 94 Primary dealer credit facility 0 - 9 0 0 Other credit extensions 0 0 0 0 Net portfolio holdings of Maiden Lane LLC (5) 29,025 + 70 + 29,025 29,059 Float -1,405 - 61 - 478 -1,790 Other Federal Reserve assets 104,973 - 1,386 + 63,826 104,425 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 2,200 0 0 2,200 Treasury currency outstanding (6) 38,903 + 14 + 367 38,903 Total factors supplying reserve funds 935,122 - 5,426 + 33,334 934,539 Currency in circulation (6) 830,025 - 92 + 17,557 831,505 Reverse repurchase agreements (7) 42,610 + 564 + 11,110 42,149 Foreign official and international accounts 42,610 + 564 + 11,110 42,149 Dealers 0 0 0 0 Treasury cash holdings 278 - 1 - 39 312 Deposits with F.R. Banks, other than reserve balances 13,115 + 830 + 1,205 14,404 U.S. Treasury, general account 5,419 + 708 + 367 6,720 Foreign official 101 0 + 6 101 Service-related 7,261 + 66 + 795 7,261 Required clearing balances 7,261 + 66 + 795 7,261 Adjustments to compensate for float 0 0 0 0 Other 335 + 57 + 37 322 Other liabilities and capital (8) 43,900 - 1,173 + 4,523 42,737 Total factors, other than reserve balances, absorbing reserve funds 929,928 + 128 + 34,354 931,108 Reserve balances with Federal Reserve Banks 5,194 - 5,554 - 1,020 3,432 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Cash value of agreements. 5. Fair value. Refer to table 2 and the note on consolidation accompanying table 5. 6. Estimated. 7. Cash value of agreements, which are collateralized by U.S. Treasury securities. 8. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to table 2 and the note on consolidation accompanying table 5. Sources: Federal Reserve Banks and the U.S. Department of the Treasury. 1A. Memorandum Items, July 23, 2008 Millions of dollars Averages of daily figures Memorandum item Week ended Change from week ended Wednesday Jul 23, 2008 Jul 16, 2008 Jul 25, 2007 Jul 23, 2008 Marketable securities held in custody for foreign official and international accounts (1) 2,353,450 + 5,477 + 350,461 2,360,830 U.S. Treasury 1,372,424 + 8,366 + 119,166 1,376,744 Federal agency 981,026 - 2,889 + 231,295 984,086 Securities lent to dealers 116,556 + 12,286 + 111,924 119,494 Overnight facility (2) 4,999 + 857 + 367 5,944 Term facility (3) 111,557 + 11,429 + 111,557 113,550 Note: Components may not sum to totals because of rounding. 1. Face value of the securities. Includes U.S. Treasury STRIPS and other zero-coupon bonds at face value. 2. Fully collateralized by U.S. Treasury securities. 3. Fully collateralized by U.S. Treasury securities, federal agency securities, and highly rated non-agency asset-backed and mortgage-backed securities. Sources: Federal Reserve Banks and the U.S. Department of the Treasury. 2. Information on Principal Accounts of Maiden Lane LLC Millions of dollars Wednesday Account name Jul 23, 2008 Net portfolio holdings of Maiden Lane LLC (1) 29,059 Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2) 28,820 Accrued interest payable to the Federal Reserve Bank of New York (2) 50 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3) 1,156 1. Fair value. Fair value reflects an estimate of the price that would be received upon selling an asset if the transaction were to be conducted in an orderly market on the measurement date. Revalued quarterly. This table reflects valuations as of June 30, 2008. 2. Book value. This amount was eliminated when preparing the Federal Reserve Bank of New York's statement of condition consistent with consolidation under generally accepted accounting principles. Refer to the note on consolidation accompanying table 5. 3. Book value. The fair value of these obligations is included in other liabilities and capital in table 1 and in other liabilities and accrued dividends in table 4 and table 5. Note: On June 26, 2008, the Federal Reserve Bank of New York (FRBNY) extended credit to Maiden Lane LLC under the authority of section 13(3) of the Federal Reserve Act. This limited liability company was formed to acquire certain assets of Bear Stearns and to manage those assets through time to maximize repayment of the credit extended and to minimize disruption to financial markets. Payments by Maiden Lane LLC from the proceeds of the net portfolio holdings will be made in the following order: operating expenses of the LLC, principal due to the FRBNY, interest due to the FRBNY, principal due to JPMorgan Chase & Co., and interest due to JPMorgan Chase & Co. Any remaining funds will be paid to the FRBNY. 3. Maturity Distribution of Term Auction Credit, Other Loans, and Securities, July 23, 2008 Millions of dollars U.S. Treasury Reverse Remaining maturity Term Other securities (2) Repurchase repurchase auction loans Weekly agreements agreements credit (1) Holdings changes (3) (3) Within 15 days 75,000 4,105 12,024 - 1,191 63,750 42,149 16 days to 90 days 75,000 13,725 36,437 + 4,583 40,000 0 91 days to 1 year --- 0 71,492 - 3,386 --- --- Over 1 year to 5 years --- --- 172,656 + 27 --- --- Over 5 years to 10 years --- --- 89,847 + 18 --- --- Over 10 years --- --- 96,665 + 34 --- --- All 150,000 17,830 479,121 + 85 103,750 42,149 Note: Components may not sum to totals because of rounding. --- Not applicable. 1. Excludes the loan from the Federal Reserve Bank of New York to Maiden Lane LLC that was eliminated when preparing that Bank's statement of condition consistent with consolidation under generally accepted accounting principles. The loan to Maiden Lane LLC is designed to be repaid from the orderly liquidation of Maiden Lane LLC's portfolio holdings and does not have a fixed amortization schedule. 2. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. 3. Cash value of agreements. 4. Consolidated Statement of Condition of All Federal Reserve Banks Millions of dollars Eliminations Change since from Wednesday Wednesday Wednesday Assets, liabilities, and capital consolidation Jul 23, 2008 Jul 16, 2008 Jul 25, 2007 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 2,200 0 0 Coin 1,334 + 23 + 287 Securities, repurchase agreements, term auction credit, and other loans 750,700 - 11,277 - 59,010 Securities held outright 479,121 + 85 - 311,593 U.S. Treasury (1) 479,121 + 85 - 311,593 Bills (2) 21,740 0 - 255,279 Notes and bonds, nominal (2) 412,392 0 - 62,280 Notes and bonds, inflation-indexed (2) 39,171 0 + 4,712 Inflation compensation (3) 5,818 + 85 + 1,254 Federal agency (2) 0 0 0 Repurchase agreements (4) 103,750 - 13,000 + 85,000 Term auction credit 150,000 0 + 150,000 Other loans 17,830 + 1,638 + 17,584 Net portfolio holdings of Maiden Lane LLC (5) 29,059 + 40 + 29,059 Items in process of collection (627) 1,431 + 364 - 664 Bank premises 2,158 + 1 + 103 Other assets (6) 102,272 - 1,933 + 62,737 Total assets (627) 900,192 - 12,780 + 32,512 Liabilities Federal Reserve notes, net of F.R. Bank holdings 794,244 + 823 + 17,761 Reverse repurchase agreements (7) 42,149 - 858 + 11,040 Deposits (0) 18,111 - 10,292 + 225 Depository institutions 10,968 - 12,961 - 1,590 U.S. Treasury, general account 6,720 + 2,684 + 1,789 Foreign official 101 - 1 + 3 Other (0) 322 - 14 + 22 Deferred availability cash items (627) 2,951 - 188 - 415 Other liabilities and accrued dividends (8,9) 2,521 - 1,669 - 3,230 Total liabilities (627) 859,976 - 12,183 + 25,381 Capital accounts Capital paid in 19,904 + 20 + 3,733 Surplus 18,494 + 1 + 3,095 Other capital accounts 1,818 - 619 + 303 Total capital 40,216 - 598 + 7,131 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 5. Fair value. Refer to table 2 and the note on consolidation accompanying table 5. 6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. 7. Cash value of agreements, which are collateralized by U.S. Treasury securities. 8. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments. 9. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to the note on consolidation accompanying table 5. 5. Statement of Condition of Each Federal Reserve Bank, July 23, 2008 Millions of dollars Kansas San Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis City Dallas Francisco Assets Gold certificate account 11,037 424 3,935 453 423 891 1,221 913 344 199 349 636 1,249 Special drawing rights certificate acct. 2,200 115 874 83 104 147 166 212 71 30 66 98 234 Coin 1,334 35 58 103 116 169 160 160 48 51 92 149 191 Securities, repurchase agreements, term auction credit, and other loans 750,700 25,948 313,288 27,924 30,926 66,524 61,618 55,149 22,402 11,681 22,327 27,542 85,372 Securities held outright 479,121 20,096 170,468 20,919 18,168 43,446 47,672 42,287 16,557 9,045 17,592 19,874 52,996 U.S. Treasury (1) 479,121 20,096 170,468 20,919 18,168 43,446 47,672 42,287 16,557 9,045 17,592 19,874 52,996 Bills (2) 21,740 912 7,735 949 824 1,971 2,163 1,919 751 410 798 902 2,405 Notes and bonds (3) 457,381 19,184 162,733 19,970 17,344 41,475 45,509 40,368 15,805 8,635 16,794 18,973 50,591 Federal agency (2) 0 0 0 0 0 0 0 0 0 0 0 0 0 Repurchase agreements (4) 103,750 4,352 36,914 4,530 3,934 9,408 10,323 9,157 3,585 1,959 3,809 4,304 11,476 Term auction credit 150,000 1,500 93,606 2,400 8,160 13,577 3,245 2,825 2,075 42 900 3,354 18,316 Other loans 17,830 0 12,300 75 664 93 379 880 185 635 25 10 2,584 Net portfolio holdings of Maiden Lane LLC (5) 29,059 0 29,059 0 0 0 0 0 0 0 0 0 0 Items in process of collection 2,059 56 0 342 270 144 180 254 24 104 196 205 284 Bank premises 2,158 119 212 65 150 204 227 207 125 111 276 253 207 Other assets (6) 102,272 5,521 28,028 9,112 6,626 24,748 8,102 5,090 1,370 1,952 1,469 2,328 7,926 Interdistrict settlement account 0 + 4,256 -50,197 + 2,606 - 1,538 - 9,210 +28,120 +15,077 + 4,919 + 2,997 + 5,992 + 4,162 - 7,184 Total assets 900,819 36,474 325,256 40,688 37,078 83,617 99,794 77,062 29,304 17,126 30,768 35,373 88,279 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. 4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 5. Fair value. Refer to the note on consolidation below. 6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. Note on consolidation: On June 26, 2008, the Federal Reserve Bank of New York extended a loan under the authority of section 13(3) of the Federal Reserve Act to Maiden Lane LLC, a limited liability company formed to acquire certain assets of Bear Stearns. The Federal Reserve Bank of New York is the primary beneficiary of Maiden Lane LLC. Consistent with generally accepted accounting principles, the assets and liabilities of Maiden Lane LLC have been consolidated with the assets and liabilities of the Federal Reserve Bank of New York in the preparation of the statements of condition shown on this release. As a consequence of the consolidation, the extension of credit from the Federal Reserve Bank of New York to Maiden Lane LLC is eliminated, the net assets of Maiden Lane LLC appear as an asset in this table (and table 1 and table 4), and the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including those with recourse only to the portfolio holdings of Maiden Lane LLC, are included in other liabilities on the next page (and in table 1 and table 4). 5. Statement of Condition of Each Federal Reserve Bank, July 23, 2008 (continued) Millions of dollars Kansas San Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis City Dallas Francisco Liabilities Federal Reserve notes outstanding 990,971 36,959 350,917 40,534 38,655 80,333 121,378 82,366 30,485 17,744 31,363 55,604 104,633 Less: Notes held by F.R. Banks 196,727 4,915 59,958 7,211 7,113 13,101 30,598 13,415 3,664 2,861 3,485 23,809 26,597 Federal Reserve notes, net 794,244 32,043 290,959 33,323 31,543 67,232 90,780 68,951 26,821 14,883 27,878 31,795 78,036 Reverse repurchase agreements (1) 42,149 1,768 14,997 1,840 1,598 3,822 4,194 3,720 1,457 796 1,548 1,748 4,662 Deposits 18,111 537 8,777 421 448 1,637 1,068 1,184 462 403 439 722 2,014 Depository institutions 10,968 533 1,796 417 444 1,513 1,064 1,181 448 402 437 721 2,011 U.S. Treasury, general account 6,720 0 6,720 0 0 0 0 0 0 0 0 0 0 Foreign official 101 2 71 4 3 11 3 2 0 1 0 1 3 Other 322 1 190 0 1 113 0 2 14 0 1 0 0 Deferred availability cash items 3,578 170 0 492 663 241 271 343 40 266 346 300 446 Other liabilities and accrued dividends (2,3) 2,521 141 250 154 162 382 336 276 147 101 122 166 283 Total liabilities 860,603 34,660 314,983 36,230 34,415 73,314 96,648 74,474 28,927 16,448 30,333 34,731 85,441 Capital Capital paid in 19,904 764 5,065 2,335 1,337 5,178 1,563 1,281 182 322 210 267 1,401 Surplus 18,494 1,050 4,657 1,814 1,291 4,998 1,425 815 180 355 194 364 1,351 Other capital 1,818 0 551 309 36 127 157 492 15 1 31 11 86 Total liabilities and capital 900,819 36,474 325,256 40,688 37,078 83,617 99,794 77,062 29,304 17,126 30,768 35,373 88,279 Note: Components may not sum to totals because of rounding. 1. Cash value of agreements, which are collateralized by U.S. Treasury securities. 2. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments. 3. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to the note on consolidation on the previous page. 6. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts Millions of dollars Federal Reserve notes and collateral Wednesday Jul 23, 2008 Federal Reserve notes outstanding 990,971 Less: Notes held by F.R. Banks not subject to collateralization 196,727 Federal Reserve notes to be collateralized 794,244 Collateral held against Federal Reserve notes 794,244 Gold certificate account 11,037 Special drawing rights certificate account 2,200 U.S. Treasury and agency securities pledged (1) 541,419 Other assets pledged 239,588 Memo: Total U.S. Treasury and agency securities (1) 582,871 Less: Face value of securities under reverse repurchase agreements 41,451 U.S. Treasury and agency securities eligible to be pledged 541,419 Note: Components may not sum to totals because of rounding. 1. Includes face value of U.S. Treasury and agency securities held outright, compensation to adjust for the effect of inflation on the original face value of inflation-indexed securities, and cash value of repurchase agreements.