FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks December 16, 2010 1. Factors Affecting Reserve Balances of Depository Institutions Millions of dollars Reserve Bank credit, related items, and Averages of daily figures Wednesday reserve balances of depository institutions at Week ended Change from week ended Dec 15, 2010 Federal Reserve Banks Dec 15, 2010 Dec 8, 2010 Dec 16, 2009 Reserve Bank credit 2,374,330 + 22,754 + 183,718 2,367,888 Securities held outright (1) 2,129,613 + 21,551 + 322,281 2,124,282 U.S. Treasury securities 960,796 + 23,565 + 184,235 967,553 Bills (2) 18,423 0 0 18,423 Notes and bonds, nominal (2) 889,827 + 21,724 + 182,178 896,578 Notes and bonds, inflation-indexed (2) 46,506 + 1,630 + 1,863 46,506 Inflation compensation (3) 6,041 + 212 + 194 6,046 Federal agency debt securities (2) 148,136 - 42 - 8,652 147,884 Mortgage-backed securities (4) 1,020,681 - 1,972 + 146,697 1,008,845 Repurchase agreements (5) 0 0 0 0 Term auction credit 0 0 - 85,832 0 Other loans 45,216 - 946 - 41,555 45,752 Primary credit 22 - 16 - 19,071 21 Secondary credit 0 0 - 212 0 Seasonal credit 28 + 1 - 8 29 Credit extended to American International Group, Inc., net (6) 20,080 - 637 - 568 20,761 Term Asset-Backed Securities Loan Facility (7) 25,087 - 293 - 21,695 24,941 Other credit extensions 0 0 0 0 Net portfolio holdings of Commercial Paper Funding Facility LLC (8) 0 0 - 14,032 0 Net portfolio holdings of Maiden Lane LLC (9) 27,425 - 181 + 921 26,914 Net portfolio holdings of Maiden Lane II LLC (10) 16,123 - 120 + 551 16,144 Net portfolio holdings of Maiden Lane III LLC (11) 23,099 - 103 + 475 23,121 Net portfolio holdings of TALF LLC (12) 647 - 1 + 381 648 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (13) 26,057 0 + 1,057 26,057 Float -1,734 + 91 + 119 -2,044 Central bank liquidity swaps (14) 60 0 - 14,432 60 Other Federal Reserve assets (15) 107,823 + 2,461 + 13,782 106,954 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 5,200 0 0 5,200 Treasury currency outstanding (16) 43,539 + 14 + 850 43,539 Total factors supplying reserve funds 2,434,110 + 22,768 + 184,568 2,427,668 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table. 1. Factors Affecting Reserve Balances of Depository Institutions (continued) Millions of dollars Reserve Bank credit, related items, and Averages of daily figures Wednesday reserve balances of depository institutions at Week ended Change from week ended Dec 15, 2010 Federal Reserve Banks Dec 15, 2010 Dec 8, 2010 Dec 16, 2009 Currency in circulation (16) 978,423 + 2,070 + 55,712 979,658 Reverse repurchase agreements (17) 50,054 - 562 - 7,175 50,816 Foreign official and international accounts 50,054 - 562 - 6,815 50,816 Others 0 0 - 360 0 Treasury cash holdings 184 - 10 - 36 177 Deposits with F.R. Banks, other than reserve balances 251,044 + 17,376 + 147,880 302,641 Term deposits held by depository institutions 5,113 0 + 5,113 5,113 U.S. Treasury, general account 30,093 + 8,909 - 46,648 91,641 U.S. Treasury, supplementary financing account 199,961 + 2 + 184,961 199,961 Foreign official 3,096 + 70 + 1,572 3,161 Service-related 2,361 + 1 - 833 2,361 Required clearing balances 2,361 + 1 - 770 2,361 Adjustments to compensate for float 0 0 - 62 0 Other 10,420 + 8,394 + 3,714 403 Funds from American International Group, Inc. asset dispositions, held as agent (18) 26,774 0 + 26,774 26,774 Other liabilities and capital (19) 73,844 + 777 + 4,322 72,882 Total factors, other than reserve balances, absorbing reserve funds 1,380,323 + 19,652 + 227,477 1,432,949 Reserve balances with Federal Reserve Banks 1,053,787 + 3,116 - 42,908 994,719 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight securities lending facility; 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. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Current face value of the securities, which is the remaining principal balance of the underlying mortgages. 5. Cash value of agreements. 6. Includes outstanding principal and capitalized interest net of unamortized deferred commitment fees and allowance for loan restructuring. Excludes credit extended to consolidated LLCs. 7. Includes credit extended by the Federal Reserve Bank of New York to eligible borrowers through the Term Asset-Backed Securities Loan Facility. 8. Includes the book value of the commercial paper, net of amortized costs and related fees, and other investments held by the Commercial Paper Funding Facility LLC. 9. Refer to table 4 and the note on consolidation accompanying table 10. 10. Refer to table 5 and the note on consolidation accompanying table 10. 11. Refer to table 6 and the note on consolidation accompanying table 10. 12. Refer to table 7 and the note on consolidation accompanying table 10. 13. Refer to table 8. 14. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank. 15. Includes other assets denominated in foreign currencies, which are revalued daily at market exchange rates, accrued dividends on the Federal Reserve Bank of New York's (FRBNY) preferred interests in AIA Aurora LLC and ALICO Holdings LLC, and the fair value adjustment to credit extended by the FRBNY to eligible borrowers through the Term Asset-Backed Securities Loan Facility. 16. Estimated. 17. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities. 18. Pending the closing of the recapitalization plan announced by American International Group, Inc. (AIG) on September 30, 2010, the cash proceeds from the disposition of certain AIG assets will be held by the FRBNY as agent. At the closing of the recapitalization plan, the proceeds will be used first to repay in full the credit extended to AIG by the FRBNY under the revolving credit facility and then to retire a portion of the FRBNY's preferred interests in AIA Aurora LLC and ALICO Holdings LLC (preferred interests). Alternatively, if the recapitalization plan is terminated under the terms of the plan, then the proceeds from the initial public offering of AIA and the sale of ALICO will be used to redeem the preferred interests in accordance with the AIA Aurora LLC and ALICO Holdings LLC limited liability company agreements, and any excess proceeds from these transactions, as well as proceeds from the disposition of other assets, will be used to repay the credit extended to AIG under the revolving credit facility. 19. Includes the liabilities of Maiden Lane LLC, Maiden Lane II LLC, Maiden Lane III LLC, and TALF LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of these LLCs. Refer to table 4 through table 7 and the note on consolidation accompanying table 10. Sources: Federal Reserve Banks and the U.S. Department of the Treasury. 1A. Memorandum Items Millions of dollars Averages of daily figures Wednesday Week ended Change from week ended Dec 15, 2010 Memorandum item Dec 15, 2010 Dec 8, 2010 Dec 16, 2009 Marketable securities held in custody for foreign official and international accounts (1) 3,337,043 - 3,554 + 388,541 3,340,442 U.S. Treasury securities 2,606,769 - 2,236 + 429,707 2,611,968 Federal agency securities (2) 730,274 - 1,318 - 41,167 728,474 Securities lent to dealers 9,416 - 951 + 522 10,734 Overnight facility (3) 9,416 - 951 + 522 10,734 U.S. Treasury securities 8,331 - 898 + 330 9,519 Federal agency debt securities 1,085 - 54 + 192 1,215 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 and mortgage-backed securities at original face value. 2. Includes debt and mortgage-backed securities. 3. Fully collateralized by U.S. Treasury securities. 2. Maturity Distribution of Securities, Loans, and Selected Other Assets and Liabilities, December 15, 2010 Millions of dollars Within 15 16 days to 91 days to Over 1 year Over 5 years Over 10 All Remaining maturity days 90 days 1 year to 5 years to 10 years years Other loans (1) 21 29 0 45,702 0 ... 45,752 U.S. Treasury securities (2) Holdings 16,005 18,642 55,978 408,543 314,299 154,086 967,553 Weekly changes + 2,907 - 3,867 + 2,416 - 1,249 + 17,066 + 668 + 17,941 Federal agency debt securities (3) Holdings 424 6,164 36,600 71,752 30,597 2,347 147,884 Weekly changes - 294 + 1,953 - 740 - 1,213 0 0 - 294 Mortgage-backed securities (4) Holdings 0 0 0 25 21 1,008,800 1,008,845 Weekly changes 0 0 0 0 0 - 13,807 - 13,808 Asset-backed securities held by TALF LLC (5) 0 0 0 0 0 0 0 Repurchase agreements (6) 0 0 ... ... ... ... 0 Central bank liquidity swaps (7) 60 0 0 0 0 0 60 Reverse repurchase agreements (6) 50,816 0 ... ... ... ... 50,816 Term deposits 5,113 0 0 ... ... ... 5,113 Note: Components may not sum to totals because of rounding. . . . Not applicable. 1. Excludes the loans from the Federal Reserve Bank of New York (FRBNY) to Maiden Lane LLC, Maiden Lane II LLC, Maiden Lane III LLC, and TALF LLC. The loans were eliminated when preparing the FRBNY's statement of condition consistent with consolidation under generally accepted accounting principles. 2. Face value. For inflation-indexed securities, includes the original face value and compensation that adjusts for the effect of inflation on the original face value of such securities. 3. Face value. 4. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Current face value of the securities, which is the remaining principal balance of the underlying mortgages. 5. Face value of asset-backed securities held by TALF LLC, which is the remaining principal balance of the underlying assets. 6. Cash value of agreements. 7. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank. 3. Supplemental Information on Mortgage-Backed Securities Purchase Program Millions of dollars Wednesday Account name Dec 15, 2010 Mortgage-backed securities held outright (1) 1,008,845 Commitments to buy mortgage-backed securities (2) 0 Commitments to sell mortgage-backed securities (2) 0 Cash and cash equivalents (3) 0 1. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Current face value of the securities, which is the remaining principal balance of the underlying mortgages. 2. Current face value. Generally settle within 180 days and include commitments associated with outright transactions, dollar rolls, and coupon swaps. 3. This amount is included in other Federal Reserve assets in table 1 and in other assets in table 9 and table 10. 4. Information on Principal Accounts of Maiden Lane LLC Millions of dollars Wednesday Account name Dec 15, 2010 Net portfolio holdings of Maiden Lane LLC (1) 26,914 Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2) 25,228 Accrued interest payable to the Federal Reserve Bank of New York (2) 609 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3) 1,312 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 September 30, 2010. Any assets purchased after this valuation date are initially recorded at cost until their estimated fair value as of the purchase date becomes available. 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 10. 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 9 and table 10. 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. 5. Information on Principal Accounts of Maiden Lane II LLC Millions of dollars Wednesday Account name Dec 15, 2010 Net portfolio holdings of Maiden Lane II LLC (1) 16,144 Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2) 13,034 Accrued interest payable to the Federal Reserve Bank of New York (2) 444 Deferred payment and accrued interest payable to subsidiaries of American International Group, Inc. (3) 1,070 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 September 30, 2010. Any assets purchased after this valuation date are initially recorded at cost until their estimated fair value as of the purchase date becomes available. 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 10. 3. Book value. The deferred payment represents the portion of the proceeds of the net portfolio holdings due to subsidiaries of American International Group, Inc. in accordance with the asset purchase agreement. The fair value of this payment and accrued interest payable are included in other liabilities and capital in table 1 and in other liabilities and accrued dividends in table 9 and table 10. Note: On December 12, 2008, the Federal Reserve Bank of New York (FRBNY) began extending credit to Maiden Lane II LLC under the authority of section 13(3) of the Federal Reserve Act. This limited liability company was formed to purchase residential mortgage-backed securities from the U.S. securities lending reinvestment portfolio of subsidiaries of American International Group, Inc. (AIG subsidiaries). Payments by Maiden Lane II LLC from the proceeds of the net portfolio holdings will be made in the following order: operating expenses of Maiden Lane II LLC, principal due to the FRBNY, interest due to the FRBNY, and deferred payment and interest due to AIG subsidiaries. Any remaining funds will be shared by the FRBNY and AIG subsidiaries. 6. Information on Principal Accounts of Maiden Lane III LLC Millions of dollars Wednesday Account name Dec 15, 2010 Net portfolio holdings of Maiden Lane III LLC (1) 23,121 Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2) 13,526 Accrued interest payable to the Federal Reserve Bank of New York (2) 538 Outstanding principal amount and accrued interest on loan payable to American International Group, Inc. (3) 5,358 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 September 30, 2010. Any assets purchased after this valuation date are initially recorded at cost until their estimated fair value as of the purchase date becomes available. 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 10. 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 9 and table 10. Note: On November 25, 2008, the Federal Reserve Bank of New York (FRBNY) began extending credit to Maiden Lane III LLC under the authority of section 13(3) of the Federal Reserve Act. This limited liability company was formed to purchase multi-sector collateralized debt obligations (CDOs) on which the Financial Products group of American International Group, Inc. (AIG) has written credit default swap (CDS) contracts. In connection with the purchase of CDOs, the CDS counterparties will concurrently unwind the related CDS transactions. Payments by Maiden Lane III LLC from the proceeds of the net portfolio holdings will be made in the following order: operating expenses of Maiden Lane III LLC, principal due to the FRBNY, interest due to the FRBNY, principal due to AIG, and interest due to AIG. Any remaining funds will be shared by the FRBNY and AIG. 7. Information on Principal Accounts of TALF LLC Millions of dollars Wednesday Account name Dec 15, 2010 Asset-backed securities holdings (1) 0 Other investments, net 648 Net portfolio holdings of TALF LLC 648 Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2) 0 Accrued interest payable to the Federal Reserve Bank of New York (2) 0 Funding provided by U.S. Treasury to TALF LLC, including accrued interest payable (3) 106 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. 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 10. 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 9 and table 10. Note: On November 25, 2008, the Federal Reserve announced the creation of the Term Asset-Backed Securities Loan Facility (TALF) under the authority of section 13(3) of the Federal Reserve Act. The TALF is a facility under which the Federal Reserve Bank of New York (FRBNY) extends loans with a term of up to five years to holders of eligible asset-backed securities. The TALF is intended to assist financial markets in accommodating the credit needs of consumers and businesses by facilitating the issuance of asset-backed securities collateralized by a variety of consumer and business loans. The loans provided through the TALF to eligible borrowers are non-recourse, meaning that the obligation of the borrower can be discharged by surrendering the collateral to the FRBNY. The loans are extended for the market value of the security less an amount known as a haircut. As a result, the borrower bears the initial risk of a decline in the value of the security. TALF LLC is a limited liability company formed to purchase and manage any asset-backed securities received by the FRBNY in connection with the decision of a borrower not to repay a TALF loan. TALF LLC has committed, for a fee, to purchase all asset-backed securities received by the FRBNY in conjunction with a TALF loan at a price equal to the TALF loan plus accrued but unpaid interest. Losses on asset-backed securities held by TALF LLC will be offset in the following order: by the commitment fees collected by TALF LLC, by the interest received on investments of TALF LLC, by up to $4.3 billion in subordinated debt funding provided by the U.S. Treasury, and finally, by senior debt funding provided by the FRBNY. Payments by TALF LLC from the proceeds of its net portfolio holdings will be made in the following order: operating expenses of TALF LLC, principal due to the FRBNY, principal due to the U.S. Treasury, interest due to the FRBNY, and interest due to the U.S. Treasury. Any remaining funds will be shared by the FRBNY and the U.S. Treasury. 8. Supplemental Information on the Federal Reserve Bank of New York's Preferred Interests in AIA Aurora LLC and ALICO Holdings LLC Millions of dollars Wednesday Account name Dec 15, 2010 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (1) 26,057 Accrued dividends on preferred interests in AIA Aurora LLC and ALICO Holdings LLC (2) 271 Preferred interests in AIA Aurora LLC (1) 16,676 Accrued dividends on preferred interests in AIA Aurora LLC (2) 174 Preferred interests in ALICO Holdings LLC (1) 9,380 Accrued dividends on preferred interests in ALICO Holdings LLC (2) 98 Note: Components may not sum to totals because of rounding. 1. Book value. 2. This amount is included in other Federal Reserve assets in table 1 and in other assets in table 9 and table 10. Note on preferred interests: In conjunction with the restructuring of the government's assistance to American International Group, Inc. (AIG) announced March 2, 2009, the outstanding balance and amount available of revolving credit provided to AIG by the FRBNY has been reduced in exchange for preferred interests in two special purpose vehicles, AIA Aurora LLC and ALICO Holdings LLC. These two limited liability companies were created to directly or indirectly hold all of the outstanding common stock of American International Assurance Company Ltd. (AIA) and American Life Insurance Company (ALICO), two life insurance subsidiaries of AIG. AIG will retain control of AIA Aurora LLC and ALICO Holdings LLC, and the FRBNY will have certain consent, disposition, and conversion rights with respect to its preferred interests. Dividends accrue as a percentage of the FRBNY's preferred interests in AIA Aurora LLC and ALICO Holdings LLC. On a quarterly basis, the accrued dividends are capitalized and added to the FRBNY's preferred interests in AIA Aurora LLC and ALICO Holdings LLC. 9. Consolidated Statement of Condition of All Federal Reserve Banks Millions of dollars Eliminations from Wednesday Change since consolidation Dec 15, 2010 Wednesday Wednesday Assets, liabilities, and capital Dec 8, 2010 Dec 16, 2009 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 5,200 0 0 Coin 2,144 + 28 + 99 Securities, repurchase agreements, term auction credit, and other loans 2,170,034 + 3,649 + 162,527 Securities held outright (1) 2,124,282 + 3,839 + 288,802 U.S. Treasury securities 967,553 + 17,941 + 190,988 Bills (2) 18,423 0 0 Notes and bonds, nominal (2) 896,578 + 16,099 + 188,929 Notes and bonds, inflation-indexed (2) 46,506 + 1,630 + 1,863 Inflation compensation (3) 6,046 + 211 + 195 Federal agency debt securities (2) 147,884 - 294 - 9,801 Mortgage-backed securities (4) 1,008,845 - 13,808 + 107,614 Repurchase agreements (5) 0 0 0 Term auction credit 0 0 - 85,832 Other loans 45,752 - 190 - 40,443 Net portfolio holdings of Commercial Paper Funding Facility LLC (6) 0 0 - 14,039 Net portfolio holdings of Maiden Lane LLC (7) 26,914 - 720 + 336 Net portfolio holdings of Maiden Lane II LLC (8) 16,144 + 24 + 566 Net portfolio holdings of Maiden Lane III LLC (9) 23,121 + 25 + 479 Net portfolio holdings of TALF LLC (10) 648 + 1 + 382 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (11) 26,057 0 + 1,057 Items in process of collection (89) 267 + 24 - 58 Bank premises 2,223 + 6 - 16 Central bank liquidity swaps (12) 60 0 - 14,432 Other assets (13) 104,702 + 431 + 12,681 Total assets (89) 2,388,550 + 3,466 + 149,582 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table. 9. Consolidated Statement of Condition of All Federal Reserve Banks (continued) Millions of dollars Eliminations from Wednesday Change since consolidation Dec 15, 2010 Wednesday Wednesday Assets, liabilities, and capital Dec 8, 2010 Dec 16, 2009 Liabilities Federal Reserve notes, net of F.R. Bank holdings 938,436 + 908 + 55,049 Reverse repurchase agreements (14) 50,816 + 797 - 6,731 Deposits (0) 1,297,332 + 1,891 + 75,119 Term deposits held by depository institutions 5,113 0 + 5,113 Other deposits held by depository institutions 997,052 - 64,204 - 76,243 U.S. Treasury, general account 91,641 + 72,052 - 40,516 U.S. Treasury, supplementary financing account 199,961 + 2 + 184,961 Foreign official 3,161 + 1 + 1,721 Other (0) 403 - 5,961 + 82 Deferred availability cash items (89) 2,311 - 13 - 334 Other liabilities and accrued dividends (15) 42,929 + 122 + 22,002 Total liabilities (89) 2,331,823 + 3,703 + 145,105 Capital accounts Capital paid in 26,832 + 46 + 1,195 Surplus 25,939 + 6 + 4,474 Other capital accounts 3,957 - 288 - 1,192 Total capital 56,728 - 236 + 4,477 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight securities lending facility; 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. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Current face value of the securities, which is the remaining principal balance of the underlying mortgages. 5. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 6. Includes the book value of the commercial paper, net of amortized costs and related fees, and other investments held by the Commercial Paper Funding Facility LLC. 7. Refer to table 4 and the note on consolidation accompanying table 10. 8. Refer to table 5 and the note on consolidation accompanying table 10. 9. Refer to table 6 and the note on consolidation accompanying table 10. 10. Refer to table 7 and the note on consolidation accompanying table 10. 11. Refer to table 8. 12. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank. 13. Includes other assets denominated in foreign currencies, which are revalued daily at market exchange rates, accrued dividends on the Federal Reserve Bank of New York's (FRBNY) preferred interests in AIA Aurora LLC and ALICO Holdings LLC, and the fair value adjustment to credit extended by the FRBNY to eligible borrowers through the Term Asset-Backed Securities Loan Facility. 14. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities. 15. Includes the liabilities of Maiden Lane LLC, Maiden Lane II LLC, Maiden Lane III LLC, and TALF LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of these LLCs. Refer to table 4 through table 7 and the note on consolidation accompanying table 10. Also includes funds from American International Group, Inc. asset dispositions, held as agent. 10. Statement of Condition of Each Federal Reserve Bank, December 15, 2010 Millions of dollars Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas Dallas San Assets, liabilities, and capital City Francisco Assets Gold certificate account 11,037 369 4,038 404 463 846 1,385 887 324 203 296 652 1,170 Special drawing rights certificate acct. 5,200 196 1,818 210 237 412 654 424 150 90 153 282 574 Coin 2,144 55 71 171 161 339 187 331 33 58 154 232 351 Securities, repurchase agreements, term auction credit, and other loans 2,170,034 53,758 912,522 49,611 72,174 241,938 201,016 160,148 54,723 29,094 72,881 89,202 232,968 Securities held outright (1) 2,124,282 53,758 866,819 49,608 72,174 241,933 201,016 160,142 54,718 29,081 72,871 89,200 232,962 U.S. Treasury securities 967,553 24,486 394,813 22,595 32,873 110,194 91,557 72,940 24,922 13,246 33,191 40,628 106,108 Bills (2) 18,423 466 7,517 430 626 2,098 1,743 1,389 475 252 632 774 2,020 Notes and bonds (3) 949,130 24,019 387,295 22,165 32,247 108,096 89,814 71,551 24,448 12,993 32,559 39,854 104,087 Federal agency debt securities (2) 147,884 3,742 60,344 3,454 5,024 16,842 13,994 11,148 3,809 2,024 5,073 6,210 16,218 Mortgage-backed securities (4) 1,008,845 25,531 411,662 23,559 34,276 114,897 95,465 76,053 25,986 13,811 34,607 42,362 110,636 Repurchase agreements (5) 0 0 0 0 0 0 0 0 0 0 0 0 0 Term auction credit 0 0 0 0 0 0 0 0 0 0 0 0 0 Other loans 45,752 0 45,702 3 0 5 0 6 5 13 10 2 6 Net portfolio holdings of Commercial Paper Funding Facility LLC (6) 0 0 0 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Maiden Lane LLC (7) 26,914 0 26,914 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Maiden Lane II LLC (8) 16,144 0 16,144 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Maiden Lane III LLC (9) 23,121 0 23,121 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of TALF LLC (10) 648 0 648 0 0 0 0 0 0 0 0 0 0 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (11) 26,057 0 26,057 0 0 0 0 0 0 0 0 0 0 Items in process of collection 356 11 0 57 81 8 39 45 16 8 34 33 24 Bank premises 2,223 127 256 68 140 239 217 209 135 107 265 246 213 Central bank liquidity swaps (12) 60 2 17 7 4 17 4 1 1 2 0 1 4 Other assets (13) 104,702 2,960 39,876 4,683 4,581 16,124 9,000 6,514 2,278 1,814 2,909 3,671 10,294 Interdistrict settlement account 0 + 3,602 + 160,867 + 22,514 - 20,548 - 36,231 - 37,822 - 34,000 - 14,384 - 6,797 - 12,996 - 3,236 - 20,969 Total assets 2,388,640 61,081 1,212,348 77,725 57,293 223,691 174,680 134,558 43,276 24,579 63,697 91,082 224,629 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table. 10. Statement of Condition of Each Federal Reserve Bank, December 15, 2010 (continued) Millions of dollars Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas Dallas San Assets, liabilities, and capital City Francisco Liabilities Federal Reserve notes outstanding 1,125,187 41,265 384,317 45,733 46,092 90,544 141,648 86,949 32,566 20,043 33,409 76,091 126,528 Less: Notes held by F.R. Banks 186,751 4,772 68,544 5,287 7,181 13,507 21,432 12,270 4,368 5,882 3,535 12,106 27,867 Federal Reserve notes, net 938,436 36,493 315,773 40,446 38,911 77,037 120,215 74,679 28,199 14,161 29,874 63,986 98,661 Reverse repurchase agreements (14) 50,816 1,286 20,736 1,187 1,727 5,787 4,809 3,831 1,309 696 1,743 2,134 5,573 Deposits 1,297,332 21,131 820,660 29,817 12,020 127,282 45,762 54,034 13,034 7,503 31,261 23,741 111,087 Term deposits held by depository institutions 5,113 20 1,978 800 15 414 12 17 5 5 14 15 1,818 Other deposits held by depository institutions 997,052 21,091 523,726 29,011 12,001 126,774 45,748 54,000 12,978 7,494 31,246 23,725 109,258 U.S. Treasury, general account 91,641 0 91,641 0 0 0 0 0 0 0 0 0 0 U.S. Treasury, supplementary financing account 199,961 0 199,961 0 0 0 0 0 0 0 0 0 0 Foreign official 3,161 1 3,133 4 3 11 2 1 0 1 0 1 3 Other 403 18 221 1 1 83 0 16 51 3 1 0 8 Deferred availability cash items 2,400 75 0 288 476 96 117 170 67 419 136 110 446 Other liabilities and accrued dividends (15) 42,929 202 39,196 262 270 757 495 408 181 144 183 261 571 Total liabilities 2,331,912 59,187 1,196,364 72,000 53,403 210,959 171,398 133,121 42,790 22,923 63,197 90,231 216,339 Capital Capital paid in 26,832 916 7,682 2,866 1,923 5,439 1,580 672 214 819 239 402 4,079 Surplus 25,939 946 7,732 2,804 1,911 7,141 1,581 621 238 712 210 353 1,689 Other capital 3,957 32 569 55 57 152 120 144 33 125 51 96 2,522 Total liabilities and capital 2,388,640 61,081 1,212,348 77,725 57,293 223,691 174,680 134,558 43,276 24,579 63,697 91,082 224,629 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table. 10. Statement of Condition of Each Federal Reserve Bank, December 15, 2010 (continued) 1. Includes securities lent to dealers under the overnight securities lending facility; 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. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Current face value of the securities, which is the remaining principal balance of the underlying mortgages. 5. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 6. Includes the book value of the commercial paper, net of amortized costs and related fees, and other investments held by the Commercial Paper Funding Facility LLC. 7. Refer to table 4 and the note on consolidation below. 8. Refer to table 5 and the note on consolidation below. 9. Refer to table 6 and the note on consolidation below. 10. Refer to table 7 and the note on consolidation below. 11. Refer to table 8. 12. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank. 13. Includes other assets denominated in foreign currencies, which are revalued daily at market exchange rates, accrued dividends on the Federal Reserve Bank of New York's (FRBNY) preferred interests in AIA Aurora LLC and ALICO Holdings LLC, and the fair value adjustment to credit extended by the FRBNY to eligible borrowers through the Term Asset-Backed Securities Loan Facility. 14. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities. 15. Includes the liabilities of Maiden Lane LLC, Maiden Lane II LLC, Maiden Lane III LLC, and TALF LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of these LLCs. Refer to table 4 through table 7 and the note on consolidation below. Also includes funds from American International Group, Inc. asset dispositions, held as agent. Note on consolidation: The Federal Reserve Bank of New York (FRBNY) has extended loans to several limited liability companies under the authority of section 13(3) of the Federal Reserve Act. On June 26, 2008, a loan was extended to Maiden Lane LLC, which was formed to acquire certain assets of Bear Stearns. On November 25, 2008, a loan was extended to Maiden Lane III LLC, which was formed to purchase multi-sector collateralized debt obligations on which the Financial Products group of the American International Group, Inc. has written credit default swap contracts. On December 12, 2008, a loan was extended to Maiden Lane II LLC, which was formed to purchase residential mortgage-backed securities from the U.S. securities lending reinvestment portfolio of subsidiaries of American International Group, Inc. On November 25, 2008, the Federal Reserve Board authorized the FRBNY to extend credit to TALF LLC, which was formed to purchase and manage any asset-backed securities received by the FRBNY in connection with the decision of a borrower not to repay a loan extended under the Term Asset-Backed Securities Loan Facility. The FRBNY is the primary beneficiary of TALF LLC, because of the two beneficiaries of the LLC, the FRBNY and the U.S. Treasury, the FRBNY is primarily responsible for directing the financial activities of TALF LLC. The FRBNY is the primary beneficiary of the other LLCs cited above because it will receive a majority of any residual returns of the LLCs and absorb a majority of any residual losses of the LLCs. Consistent with generally accepted accounting principles, the assets and liabilities of these LLCs have been consolidated with the assets and liabilities of the FRBNY in the preparation of the statements of condition shown on this release. As a consequence of the consolidation, the extensions of credit from the FRBNY to the LLCs are eliminated, the net assets of the LLCs appear as assets on the previous page (and in table 1 and table 9), and the liabilities of the LLCs to entities other than the FRBNY, including those with recourse only to the portfolio holdings of the LLCs, are included in other liabilities in this table (and table 1 and table 9). 11. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts Millions of dollars Wednesday Federal Reserve notes and collateral Dec 15, 2010 Federal Reserve notes outstanding 1,125,187 Less: Notes held by F.R. Banks not subject to collateralization 186,751 Federal Reserve notes to be collateralized 938,436 Collateral held against Federal Reserve notes 938,436 Gold certificate account 11,037 Special drawing rights certificate account 5,200 U.S. Treasury, agency debt, and mortgage-backed securities pledged (1,2) 922,199 Other assets pledged 0 Memo: Total U.S. Treasury, agency debt, and mortgage-backed securities (1,2) 2,124,282 Less: Face value of securities under reverse repurchase agreements 45,385 U.S. Treasury, agency debt, and mortgage-backed securities eligible to be pledged 2,078,897 Note: Components may not sum to totals because of rounding. 1. Includes face value of U.S. Treasury, agency debt, and mortgage-backed 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. 2. Includes securities lent to dealers under the overnight securities lending facility; refer to table 1A.