FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks August 7, 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 Aug 6, 2008 Jul 30, 2008 Aug 8, 2007 Aug 6, 2008 Reserve Bank credit 889,150 - 3,633 + 38,892 882,522 Securities held outright 479,291 + 117 - 311,523 479,330 U.S. Treasury (1) 479,291 + 117 - 311,523 479,330 Bills (2) 21,740 0 - 255,279 21,740 Notes and bonds, nominal (2) 411,731 - 661 - 61,647 411,731 Notes and bonds, inflation-indexed (2) 39,832 + 661 + 4,079 39,832 Inflation compensation (3) 5,988 + 117 + 1,324 6,027 Federal agency (2) 0 0 0 0 Repurchase agreements (4) 110,500 - 3,214 + 91,929 104,750 Term auction credit 150,000 0 + 150,000 150,000 Other loans 17,463 - 181 + 17,212 17,504 Primary credit 17,370 - 82 + 17,369 17,407 Secondary credit 0 - 89 0 0 Seasonal credit 93 - 8 - 156 97 Primary dealer credit facility 0 - 3 0 0 Other credit extensions 0 0 0 0 Net portfolio holdings of Maiden Lane LLC (5) 29,105 + 40 + 29,105 29,139 Float -1,180 + 141 - 282 -1,656 Other Federal Reserve assets 103,971 - 536 + 62,450 103,455 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 2,200 0 0 2,200 Treasury currency outstanding (6) 38,747 + 14 + 195 38,747 Total factors supplying reserve funds 941,138 - 3,619 + 39,087 934,510 Currency in circulation (6) 831,567 + 951 + 18,556 832,922 Reverse repurchase agreements (7) 43,790 + 254 + 12,143 43,198 Foreign official and international accounts 43,790 + 254 + 12,143 43,198 Dealers 0 0 0 0 Treasury cash holdings 315 + 2 + 70 298 Deposits with F.R. Banks, other than reserve balances 12,363 - 415 + 403 12,222 U.S. Treasury, general account 4,880 - 214 - 118 4,798 Foreign official 115 + 14 + 21 101 Service-related 7,019 - 242 + 457 7,019 Required clearing balances 7,019 - 242 + 457 7,019 Adjustments to compensate for float 0 0 0 0 Other 348 + 26 + 42 303 Other liabilities and capital (8) 42,813 - 25 + 2,776 42,027 Total factors, other than reserve balances, absorbing reserve funds 930,848 + 767 + 33,948 930,667 Reserve balances with Federal Reserve Banks 10,290 - 4,386 + 5,139 3,842 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, August 6, 2008 Millions of dollars Averages of daily figures Memorandum item Week ended Change from week ended Wednesday Aug 6, 2008 Jul 30, 2008 Aug 8, 2007 Aug 6, 2008 Marketable securities held in custody for foreign official and international accounts (1) 2,395,684 + 28,010 + 389,258 2,400,849 U.S. Treasury 1,418,843 + 34,425 + 171,024 1,420,203 Federal agency 976,842 - 6,414 + 218,235 980,646 Securities lent to dealers 132,859 + 6,206 + 129,372 132,790 Overnight facility (2) 7,997 + 3,121 + 4,510 7,642 Term facility (3) 124,862 + 3,085 + 124,862 125,148 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 Aug 6, 2008 Net portfolio holdings of Maiden Lane LLC (1) 29,139 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) 74 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3) 1,159 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, August 6, 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 3,338 19,040 + 4,493 64,750 43,198 16 days to 90 days 75,000 14,166 27,921 - 8,046 40,000 0 91 days to 1 year --- 0 69,497 + 52 --- --- Over 1 year to 5 years --- --- 175,563 + 2,880 --- --- Over 5 years to 10 years --- --- 89,886 + 21 --- --- Over 10 years --- --- 97,424 + 725 --- --- All 150,000 17,504 479,330 + 124 104,750 43,198 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 Aug 6, 2008 Jul 30, 2008 Aug 8, 2007 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 2,200 0 0 Coin 1,379 - 7 + 317 Securities, repurchase agreements, term auction credit, and other loans 751,584 - 18,249 - 58,241 Securities held outright 479,330 + 124 - 311,490 U.S. Treasury (1) 479,330 + 124 - 311,490 Bills (2) 21,740 0 - 255,279 Notes and bonds, nominal (2) 411,731 - 661 - 61,647 Notes and bonds, inflation-indexed (2) 39,832 + 661 + 4,079 Inflation compensation (3) 6,027 + 124 + 1,357 Federal agency (2) 0 0 0 Repurchase agreements (4) 104,750 - 18,500 + 86,000 Term auction credit 150,000 0 + 150,000 Other loans 17,504 + 127 + 17,249 Net portfolio holdings of Maiden Lane LLC (5) 29,139 + 40 + 29,139 Items in process of collection (1,164) 2,514 + 1,709 - 613 Bank premises 2,160 - 1 + 97 Other assets (6) 101,295 - 730 + 61,301 Total assets (1,164) 901,307 - 17,239 + 31,998 Liabilities Federal Reserve notes, net of F.R. Bank holdings 795,848 + 285 + 18,498 Reverse repurchase agreements (7) 43,198 - 1,265 + 13,066 Deposits (0) 16,065 - 17,352 - 2,429 Depository institutions 10,862 - 17,850 - 2,594 U.S. Treasury, general account 4,798 + 527 + 128 Foreign official 101 0 + 7 Other (0) 303 - 30 + 29 Deferred availability cash items (1,164) 4,169 + 1,433 + 419 Other liabilities and accrued dividends (8,9) 1,712 - 273 - 4,193 Total liabilities (1,164) 860,992 - 17,171 + 25,361 Capital accounts Capital paid in 19,937 0 + 3,277 Surplus 18,502 + 1 + 3,090 Other capital accounts 1,875 - 71 + 268 Total capital 40,315 - 68 + 6,637 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, August 6, 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 1,379 39 62 97 119 172 170 165 52 51 98 156 198 Securities, repurchase agreements, term auction credit, and other loans 751,584 27,699 306,864 28,412 33,522 64,132 64,749 55,596 22,822 11,762 23,469 28,445 84,113 Securities held outright 479,330 20,105 170,543 20,928 18,176 43,465 47,692 42,305 16,564 9,049 17,600 19,883 53,019 U.S. Treasury (1) 479,330 20,105 170,543 20,928 18,176 43,465 47,692 42,305 16,564 9,049 17,600 19,883 53,019 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) 457,590 19,193 162,808 19,979 17,352 41,493 45,529 40,387 15,813 8,639 16,802 18,981 50,614 Federal agency (2) 0 0 0 0 0 0 0 0 0 0 0 0 0 Repurchase agreements (4) 104,750 4,394 37,269 4,574 3,972 9,499 10,422 9,245 3,620 1,978 3,846 4,345 11,587 Term auction credit 150,000 3,200 87,052 2,895 10,910 11,077 6,360 2,850 2,475 46 2,000 3,854 17,281 Other loans 17,504 0 12,000 15 464 92 274 1,195 163 689 23 363 2,226 Net portfolio holdings of Maiden Lane LLC (5) 29,139 0 29,139 0 0 0 0 0 0 0 0 0 0 Items in process of collection 3,678 140 0 550 610 226 485 235 43 187 391 308 503 Bank premises 2,160 120 212 65 150 208 226 208 126 111 275 252 207 Other assets (6) 101,295 5,458 27,808 8,989 6,546 24,393 8,054 5,062 1,390 1,936 1,472 2,329 7,858 Interdistrict settlement account 0 + 2,493 -43,732 + 2,455 - 3,667 - 6,285 +24,447 +14,623 + 4,620 + 2,843 + 4,905 + 2,924 - 5,627 Total assets 902,471 36,488 325,162 41,103 37,807 83,885 99,518 77,014 29,468 17,119 31,025 35,148 88,735 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, August 6, 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 991,468 37,034 351,867 40,483 38,602 80,400 120,931 82,407 30,569 17,854 31,345 55,474 104,501 Less: Notes held by F.R. Banks 195,620 5,006 59,760 7,123 7,068 12,880 30,658 13,333 3,520 2,874 3,349 24,054 25,996 Federal Reserve notes, net 795,848 32,028 292,107 33,360 31,534 67,520 90,273 69,075 27,049 14,980 27,995 31,421 78,506 Reverse repurchase agreements (1) 43,198 1,812 15,370 1,886 1,638 3,917 4,298 3,813 1,493 816 1,586 1,792 4,778 Deposits 16,065 388 8,014 335 834 1,332 993 814 323 244 367 660 1,762 Depository institutions 10,862 384 2,958 330 831 1,231 990 811 310 243 365 659 1,750 U.S. Treasury, general account 4,798 0 4,798 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 303 2 186 0 0 90 0 1 13 0 1 0 10 Deferred availability cash items 5,333 275 0 905 957 412 437 433 92 298 518 448 559 Other liabilities and accrued dividends (2,3) 1,712 146 -632 161 166 407 353 281 131 102 124 182 291 Total liabilities 862,156 34,649 314,859 36,647 35,129 73,588 96,354 74,416 29,088 16,438 30,589 34,502 85,896 Capital Capital paid in 19,937 787 5,065 2,335 1,341 5,189 1,561 1,281 182 322 210 267 1,398 Surplus 18,502 1,050 4,665 1,814 1,291 4,999 1,425 815 180 355 193 364 1,351 Other capital 1,875 2 572 308 46 109 177 501 19 4 33 15 90 Total liabilities and capital 902,471 36,488 325,162 41,103 37,807 83,885 99,518 77,014 29,468 17,119 31,025 35,148 88,735 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 Aug 6, 2008 Federal Reserve notes outstanding 991,468 Less: Notes held by F.R. Banks not subject to collateralization 195,620 Federal Reserve notes to be collateralized 795,848 Collateral held against Federal Reserve notes 795,848 Gold certificate account 11,037 Special drawing rights certificate account 2,200 U.S. Treasury and agency securities pledged (1) 541,515 Other assets pledged 241,096 Memo: Total U.S. Treasury and agency securities (1) 584,080 Less: Face value of securities under reverse repurchase agreements 42,564 U.S. Treasury and agency securities eligible to be pledged 541,515 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.