FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks December 9, 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 8, 2010 Federal Reserve Banks Dec 8, 2010 Dec 1, 2010 Dec 9, 2009 Reserve Bank credit 2,351,576 + 33,693 + 183,712 2,364,435 Securities held outright (1) 2,108,062 + 30,168 + 321,774 2,120,443 U.S. Treasury securities 937,231 + 32,332 + 160,681 949,612 Bills (2) 18,423 0 0 18,423 Notes and bonds, nominal (2) 868,103 + 32,320 + 160,454 880,479 Notes and bonds, inflation-indexed (2) 44,876 0 + 233 44,876 Inflation compensation (3) 5,829 + 12 - 7 5,835 Federal agency debt securities (2) 148,178 0 - 7,350 148,178 Mortgage-backed securities (4) 1,022,653 - 2,164 + 168,443 1,022,653 Repurchase agreements (5) 0 0 0 0 Term auction credit 0 0 - 85,832 0 Other loans 46,162 - 629 - 38,317 45,942 Primary credit 38 - 153 - 19,312 25 Secondary credit 0 0 - 31 0 Seasonal credit 27 0 - 5 27 Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility 0 0 0 0 Credit extended to American International Group, Inc., net (6) 20,717 - 205 - 66 20,510 Term Asset-Backed Securities Loan Facility (7) 25,380 - 271 - 18,904 25,380 Other credit extensions 0 0 0 0 Net portfolio holdings of Commercial Paper Funding Facility LLC (8) 0 0 - 14,600 0 Net portfolio holdings of Maiden Lane LLC (9) 27,606 + 43 + 1,138 27,634 Net portfolio holdings of Maiden Lane II LLC (10) 16,243 - 61 + 635 16,120 Net portfolio holdings of Maiden Lane III LLC (11) 23,202 - 144 + 592 23,096 Net portfolio holdings of TALF LLC (12) 648 + 1 + 382 647 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (13) 26,057 0 + 1,057 26,057 Float -1,825 - 117 + 319 -2,081 Central bank liquidity swaps (14) 60 0 - 16,447 60 Other Federal Reserve assets (15) 105,362 + 4,433 + 13,011 106,516 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 + 851 43,539 Total factors supplying reserve funds 2,411,355 + 33,707 + 184,562 2,424,215 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 8, 2010 Federal Reserve Banks Dec 8, 2010 Dec 1, 2010 Dec 9, 2009 Currency in circulation (16) 976,366 - 1,703 + 55,082 978,770 Reverse repurchase agreements (17) 50,616 - 4,241 - 7,171 50,019 Foreign official and international accounts 50,616 - 4,241 - 7,069 50,019 Others 0 0 - 103 0 Treasury cash holdings 194 - 3 - 33 185 Deposits with F.R. Banks, other than reserve balances 233,668 - 7,558 + 179,805 236,546 Term deposits held by depository institutions 5,113 + 5,113 + 5,113 5,113 U.S. Treasury, general account 21,184 - 14,194 - 10,609 19,589 U.S. Treasury, supplementary financing account 199,959 0 + 184,960 199,959 Foreign official 3,026 + 42 + 592 3,160 Service-related 2,360 - 5 - 772 2,361 Required clearing balances 2,360 - 5 - 772 2,361 Adjustments to compensate for float 0 0 0 0 Other 2,026 + 1,486 + 522 6,364 Funds from American International Group, Inc. asset dispositions, held as agent (18) 26,774 0 + 26,774 26,774 Other liabilities and capital (19) 73,067 + 422 + 5,966 72,997 Total factors, other than reserve balances, absorbing reserve funds 1,360,685 - 13,083 + 260,422 1,365,291 Reserve balances with Federal Reserve Banks 1,050,671 + 46,791 - 75,860 1,058,924 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. 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 8, 2010 Memorandum item Dec 8, 2010 Dec 1, 2010 Dec 9, 2009 Marketable securities held in custody for foreign official and international accounts (1) 3,340,597 - 284 + 396,954 3,338,902 U.S. Treasury securities 2,609,005 + 1,108 + 437,513 2,607,915 Federal agency securities (2) 731,592 - 1,391 - 40,559 730,987 Securities lent to dealers 10,367 + 2,361 + 2,030 10,830 Overnight facility (3) 10,367 + 2,361 + 2,030 10,830 U.S. Treasury securities 9,229 + 2,470 + 1,811 9,618 Federal agency debt securities 1,139 - 108 + 220 1,212 Term facility (4) 0 0 0 0 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. 4. U.S. Treasury securities only. Fully collateralized by U.S. Treasury securities, federal agency securities, and other highly rated debt securities. 2. Maturity Distribution of Securities, Loans, and Selected Other Assets and Liabilities, December 8, 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) 25 27 0 45,890 0 ... 45,942 U.S. Treasury securities (2) Holdings 13,098 22,509 53,562 409,792 297,233 153,418 949,612 Weekly changes - 2,503 + 2,504 + 1 + 11,814 + 18,295 + 2,050 + 32,161 Federal agency debt securities (3) Holdings 718 4,211 37,340 72,965 30,597 2,347 148,178 Weekly changes + 424 - 424 0 0 0 0 0 Mortgage-backed securities (4) Holdings 0 0 0 25 21 1,022,607 1,022,653 Weekly changes 0 0 0 0 + 1 0 0 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) 50,019 0 ... ... ... ... 50,019 Term deposits 0 5,113 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 8, 2010 Mortgage-backed securities held outright (1) 1,022,653 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 8, 2010 Net portfolio holdings of Maiden Lane LLC (1) 27,634 Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2) 25,975 Accrued interest payable to the Federal Reserve Bank of New York (2) 605 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3) 1,310 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 8, 2010 Net portfolio holdings of Maiden Lane II LLC (1) 16,120 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) 441 Deferred payment and accrued interest payable to subsidiaries of American International Group, Inc. (3) 1,069 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 8, 2010 Net portfolio holdings of Maiden Lane III LLC (1) 23,096 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) 534 Outstanding principal amount and accrued interest on loan payable to American International Group, Inc. (3) 5,355 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 8, 2010 Asset-backed securities holdings (1) 0 Other investments, net 647 Net portfolio holdings of TALF LLC 647 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 8, 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) 246 Preferred interests in AIA Aurora LLC (1) 16,676 Accrued dividends on preferred interests in AIA Aurora LLC (2) 158 Preferred interests in ALICO Holdings LLC (1) 9,380 Accrued dividends on preferred interests in ALICO Holdings LLC (2) 89 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 8, 2010 Wednesday Wednesday Assets, liabilities, and capital Dec 1, 2010 Dec 9, 2009 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 5,200 0 0 Coin 2,116 + 23 + 79 Securities, repurchase agreements, term auction credit, and other loans 2,166,385 + 31,254 + 209,243 Securities held outright (1) 2,120,443 + 32,161 + 333,431 U.S. Treasury securities 949,612 + 32,161 + 173,058 Bills (2) 18,423 0 0 Notes and bonds, nominal (2) 880,479 + 32,147 + 172,830 Notes and bonds, inflation-indexed (2) 44,876 0 + 233 Inflation compensation (3) 5,835 + 15 - 5 Federal agency debt securities (2) 148,178 0 - 7,967 Mortgage-backed securities (4) 1,022,653 0 + 168,340 Repurchase agreements (5) 0 0 0 Term auction credit 0 0 - 85,832 Other loans 45,942 - 908 - 38,356 Net portfolio holdings of Commercial Paper Funding Facility LLC (6) 0 0 - 14,027 Net portfolio holdings of Maiden Lane LLC (7) 27,634 + 33 + 1,143 Net portfolio holdings of Maiden Lane II LLC (8) 16,120 - 217 + 549 Net portfolio holdings of Maiden Lane III LLC (9) 23,096 - 256 + 475 Net portfolio holdings of TALF LLC (10) 647 - 1 + 381 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (11) 26,057 0 + 1,057 Items in process of collection (93) 243 - 68 - 153 Bank premises 2,217 + 2 - 17 Central bank liquidity swaps (12) 60 0 - 16,445 Other assets (13) 104,271 + 4,617 + 13,211 Total assets (93) 2,385,084 + 35,388 + 195,498 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 8, 2010 Wednesday Wednesday Assets, liabilities, and capital Dec 1, 2010 Dec 9, 2009 Liabilities Federal Reserve notes, net of F.R. Bank holdings 937,528 + 1,137 + 54,333 Reverse repurchase agreements (14) 50,019 - 2,843 - 6,497 Deposits (0) 1,295,441 + 35,768 + 114,327 Term deposits held by depository institutions 5,113 + 5,113 + 5,113 Other deposits held by depository institutions 1,061,256 + 50,413 - 45,413 U.S. Treasury, general account 19,589 - 25,883 - 35,775 U.S. Treasury, supplementary financing account 199,959 0 + 184,960 Foreign official 3,160 + 206 + 844 Other (0) 6,364 + 5,919 + 4,598 Deferred availability cash items (93) 2,324 + 282 - 139 Other liabilities and accrued dividends (15) 42,807 + 98 + 28,660 Total liabilities (93) 2,328,120 + 34,444 + 190,685 Capital accounts Capital paid in 26,786 - 6 + 1,161 Surplus 25,933 + 23 + 4,476 Other capital accounts 4,245 + 928 - 825 Total capital 56,964 + 945 + 4,812 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. 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 8, 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 2,116 55 72 167 158 335 185 329 29 57 154 227 346 Securities, repurchase agreements, term auction credit, and other loans 2,166,385 53,667 911,143 49,529 72,044 241,496 200,652 159,857 54,619 29,047 72,749 89,041 232,541 Securities held outright (1) 2,120,443 53,661 865,253 49,518 72,044 241,496 200,652 159,852 54,619 29,028 72,740 89,038 232,541 U.S. Treasury securities 949,612 24,032 387,492 22,176 32,264 108,151 89,860 71,588 24,460 13,000 32,576 39,875 104,140 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) 931,189 23,565 379,975 21,746 31,638 106,052 88,116 70,199 23,986 12,748 31,944 39,101 102,120 Federal agency debt securities (2) 148,178 3,750 60,464 3,460 5,034 16,876 14,022 11,171 3,817 2,029 5,083 6,222 16,250 Mortgage-backed securities (4) 1,022,653 25,880 417,297 23,882 34,745 116,469 96,771 77,094 26,342 14,000 35,081 42,942 112,150 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 45,942 6 45,890 11 0 0 0 4 0 18 10 3 0 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) 27,634 0 27,634 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Maiden Lane II LLC (8) 16,120 0 16,120 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Maiden Lane III LLC (9) 23,096 0 23,096 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of TALF LLC (10) 647 0 647 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 336 14 0 54 78 10 32 46 11 6 18 36 30 Bank premises 2,217 127 252 68 140 239 217 209 135 107 264 246 213 Central bank liquidity swaps (12) 60 2 17 7 4 17 4 1 1 2 0 1 4 Other assets (13) 104,271 2,944 39,683 4,661 4,563 16,061 8,984 6,492 2,268 1,810 2,900 3,654 10,251 Interdistrict settlement account 0 + 5,802 + 155,054 + 21,331 - 18,780 - 14,936 - 43,680 - 33,972 - 14,670 - 6,500 - 13,722 - 784 - 35,144 Total assets 2,385,177 63,177 1,205,632 76,432 58,908 244,480 168,433 134,273 42,866 24,822 62,813 93,355 209,986 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 8, 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 1,125,219 41,258 384,982 45,641 45,912 90,075 141,975 86,909 32,538 20,064 33,429 76,090 126,345 Less: Notes held by F.R. Banks 187,690 4,408 71,178 5,209 7,016 13,015 22,446 11,888 4,358 5,858 3,432 11,379 27,504 Federal Reserve notes, net 937,528 36,850 313,804 40,432 38,896 77,061 119,528 75,021 28,180 14,205 29,998 64,712 98,841 Reverse repurchase agreements (14) 50,019 1,266 20,410 1,168 1,699 5,697 4,733 3,771 1,288 685 1,716 2,100 5,485 Deposits 1,295,441 22,874 816,169 28,636 13,674 148,091 40,274 53,450 12,652 7,716 30,284 25,320 96,300 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 1,061,256 22,834 585,377 27,831 13,656 147,539 40,259 53,416 12,594 7,707 30,269 25,304 94,470 U.S. Treasury, general account 19,589 0 19,589 0 0 0 0 0 0 0 0 0 0 U.S. Treasury, supplementary financing account 199,959 0 199,959 0 0 0 0 0 0 0 0 0 0 Foreign official 3,160 1 3,132 4 3 11 2 1 0 1 0 1 3 Other 6,364 18 6,136 1 0 127 0 16 52 3 1 0 9 Deferred availability cash items 2,417 92 0 247 465 114 129 173 71 413 132 107 474 Other liabilities and accrued dividends (15) 42,807 200 39,089 257 269 755 502 405 183 145 179 256 566 Total liabilities 2,328,213 61,282 1,189,473 70,739 55,005 231,718 165,166 132,820 42,375 23,164 62,309 92,496 201,667 Capital Capital paid in 26,786 916 7,676 2,868 1,923 5,439 1,549 673 214 819 227 402 4,079 Surplus 25,933 946 7,727 2,804 1,911 7,141 1,581 621 238 712 210 353 1,689 Other capital 4,245 33 756 20 71 182 136 159 39 127 68 104 2,551 Total liabilities and capital 2,385,177 63,177 1,205,632 76,432 58,908 244,480 168,433 134,273 42,866 24,822 62,813 93,355 209,986 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 8, 2010 (continued) 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. 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 8, 2010 Federal Reserve notes outstanding 1,125,219 Less: Notes held by F.R. Banks not subject to collateralization 187,690 Federal Reserve notes to be collateralized 937,528 Collateral held against Federal Reserve notes 937,528 Gold certificate account 11,037 Special drawing rights certificate account 5,200 U.S. Treasury, agency debt, and mortgage-backed securities pledged (1,2) 921,292 Other assets pledged 0 Memo: Total U.S. Treasury, agency debt, and mortgage-backed securities (1,2) 2,120,443 Less: Face value of securities under reverse repurchase agreements 48,939 U.S. Treasury, agency debt, and mortgage-backed securities eligible to be pledged 2,071,504 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 and term securities lending facilities; refer to table 1A.