FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks July 31, 2008 1. Factors Affecting Reserve Balances of Depository Institutions Millions of dollars Reserve Bank credit, related items, and Averages of daily figures reserve balances of depository institutions at Week ended Change from week ended Wednesday Federal Reserve Banks Jul 30, 2008 Jul 23, 2008 Aug 1, 2007 Jul 30, 2008 Reserve Bank credit 892,783 + 9,805 + 35,113 901,186 Securities held outright 479,174 + 85 - 311,584 479,206 U.S. Treasury (1) 479,174 + 85 - 311,584 479,206 Bills (2) 21,740 0 - 255,279 21,740 Notes and bonds, nominal (2) 412,392 0 - 61,911 412,392 Notes and bonds, inflation-indexed (2) 39,171 0 + 4,343 39,171 Inflation compensation (3) 5,871 + 84 + 1,262 5,903 Federal agency (2) 0 0 0 0 Repurchase agreements (4) 113,714 + 8,928 + 87,928 123,250 Term auction credit 150,000 0 + 150,000 150,000 Other loans 17,644 + 1,134 + 17,393 17,377 Primary credit 17,452 + 1,071 + 17,450 17,279 Secondary credit 89 + 55 + 89 0 Seasonal credit 101 + 5 - 148 98 Primary dealer credit facility 3 + 3 + 3 0 Other credit extensions 0 0 0 0 Net portfolio holdings of Maiden Lane LLC (5) 29,065 + 40 + 29,065 29,099 Float -1,322 + 83 - 463 -1,931 Other Federal Reserve assets 104,507 - 466 + 62,773 104,185 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 2,200 0 0 2,200 Treasury currency outstanding (6) 38,917 + 14 + 376 38,917 Total factors supplying reserve funds 944,941 + 9,819 + 35,489 953,343 Currency in circulation (6) 830,800 + 775 + 18,418 832,779 Reverse repurchase agreements (7) 43,536 + 926 + 10,201 44,463 Foreign official and international accounts 43,536 + 926 + 10,201 44,463 Dealers 0 0 0 0 Treasury cash holdings 313 + 35 + 21 318 Deposits with F.R. Banks, other than reserve balances 12,778 - 337 + 1,057 11,966 U.S. Treasury, general account 5,094 - 325 + 220 4,271 Foreign official 101 0 + 5 101 Service-related 7,261 0 + 796 7,261 Required clearing balances 7,261 0 + 796 7,261 Adjustments to compensate for float 0 0 0 0 Other 322 - 13 + 35 333 Other liabilities and capital (8) 42,838 - 1,062 + 3,359 42,368 Total factors, other than reserve balances, absorbing reserve funds 930,265 + 337 + 33,057 931,894 Reserve balances with Federal Reserve Banks 14,676 + 9,482 + 2,432 21,449 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Cash value of agreements. 5. Fair value. Refer to table 2 and the note on consolidation accompanying table 5. 6. Estimated. 7. Cash value of agreements, which are collateralized by U.S. Treasury securities. 8. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to table 2 and the note on consolidation accompanying table 5. Sources: Federal Reserve Banks and the U.S. Department of the Treasury. 1A. Memorandum Items, July 30, 2008 Millions of dollars Averages of daily figures Memorandum item Week ended Change from week ended Wednesday Jul 30, 2008 Jul 23, 2008 Aug 1, 2007 Jul 30, 2008 Marketable securities held in custody for foreign official and international accounts (1) 2,367,674 + 14,224 + 357,724 2,376,324 U.S. Treasury 1,384,418 + 11,994 + 132,242 1,394,631 Federal agency 983,256 + 2,230 + 225,483 981,693 Securities lent to dealers 126,653 + 10,097 + 120,569 134,715 Overnight facility (2) 4,876 - 123 - 1,208 11,567 Term facility (3) 121,777 + 10,220 + 121,777 123,148 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 Jul 30, 2008 Net portfolio holdings of Maiden Lane LLC (1) 29,099 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) 62 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3) 1,157 1. Fair value. Fair value reflects an estimate of the price that would be received upon selling an asset if the transaction were to be conducted in an orderly market on the measurement date. Revalued quarterly. This table reflects valuations as of June 30, 2008. 2. Book value. This amount was eliminated when preparing the Federal Reserve Bank of New York's statement of condition consistent with consolidation under generally accepted accounting principles. Refer to the note on consolidation accompanying table 5. 3. Book value. The fair value of these obligations is included in other liabilities and capital in table 1 and in other liabilities and accrued dividends in table 4 and table 5. Note: On June 26, 2008, the Federal Reserve Bank of New York (FRBNY) extended credit to Maiden Lane LLC under the authority of section 13(3) of the Federal Reserve Act. This limited liability company was formed to acquire certain assets of Bear Stearns and to manage those assets through time to maximize repayment of the credit extended and to minimize disruption to financial markets. Payments by Maiden Lane LLC from the proceeds of the net portfolio holdings will be made in the following order: operating expenses of the LLC, principal due to the FRBNY, interest due to the FRBNY, principal due to JPMorgan Chase & Co., and interest due to JPMorgan Chase & Co. Any remaining funds will be paid to the FRBNY. 3. Maturity Distribution of Term Auction Credit, Other Loans, and Securities, July 30, 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 150,000 3,061 14,547 + 2,523 83,250 44,463 16 days to 90 days 0 14,316 35,967 - 470 40,000 0 91 days to 1 year --- 0 69,445 - 2,047 --- --- Over 1 year to 5 years --- --- 172,683 + 27 --- --- Over 5 years to 10 years --- --- 89,865 + 18 --- --- Over 10 years --- --- 96,699 + 34 --- --- All 150,000 17,377 479,206 + 85 123,250 44,463 Note: Components may not sum to totals because of rounding. --- Not applicable. 1. Excludes the loan from the Federal Reserve Bank of New York to Maiden Lane LLC that was eliminated when preparing that Bank's statement of condition consistent with consolidation under generally accepted accounting principles. The loan to Maiden Lane LLC is designed to be repaid from the orderly liquidation of Maiden Lane LLC's portfolio holdings and does not have a fixed amortization schedule. 2. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. 3. Cash value of agreements. 4. Consolidated Statement of Condition of All Federal Reserve Banks Millions of dollars Eliminations Change since from Wednesday Wednesday Wednesday Assets, liabilities, and capital consolidation Jul 30, 2008 Jul 23, 2008 Aug 1, 2007 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 2,200 0 0 Coin 1,386 + 52 + 290 Securities, repurchase agreements, term auction credit, and other loans 769,833 + 19,133 - 45,954 Securities held outright 479,206 + 85 - 311,596 U.S. Treasury (1) 479,206 + 85 - 311,596 Bills (2) 21,740 0 - 255,279 Notes and bonds, nominal (2) 412,392 0 - 60,986 Notes and bonds, inflation-indexed (2) 39,171 0 + 3,418 Inflation compensation (3) 5,903 + 85 + 1,250 Federal agency (2) 0 0 0 Repurchase agreements (4) 123,250 + 19,500 + 98,500 Term auction credit 150,000 0 + 150,000 Other loans 17,377 - 453 + 17,142 Net portfolio holdings of Maiden Lane LLC (5) 29,099 + 40 + 29,099 Items in process of collection (489) 805 - 626 - 1,621 Bank premises 2,161 + 3 + 108 Other assets (6) 102,025 - 247 + 62,512 Total assets (489) 918,546 + 18,354 + 44,434 Liabilities Federal Reserve notes, net of F.R. Bank holdings 795,563 + 1,319 + 18,610 Reverse repurchase agreements (7) 44,463 + 2,314 + 12,917 Deposits (0) 33,417 + 15,306 + 11,174 Depository institutions 28,712 + 17,744 + 11,628 U.S. Treasury, general account 4,271 - 2,449 - 498 Foreign official 101 0 + 6 Other (0) 333 + 11 + 38 Deferred availability cash items (489) 2,736 - 215 - 1,172 Other liabilities and accrued dividends (8,9) 1,985 - 536 - 3,839 Total liabilities (489) 878,163 + 18,187 + 37,689 Capital accounts Capital paid in 19,937 + 33 + 3,288 Surplus 18,501 + 7 + 3,090 Other capital accounts 1,946 + 128 + 368 Total capital 40,383 + 167 + 6,745 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 5. Fair value. Refer to table 2 and the note on consolidation accompanying table 5. 6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. 7. Cash value of agreements, which are collateralized by U.S. Treasury securities. 8. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments. 9. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to the note on consolidation accompanying table 5. 5. Statement of Condition of Each Federal Reserve Bank, July 30, 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 1,386 40 63 100 120 174 168 166 54 52 98 154 196 Securities, repurchase agreements, term auction credit, and other loans 769,833 26,770 319,957 28,714 31,012 68,293 63,509 57,107 23,716 12,100 23,046 28,707 86,902 Securities held outright 479,206 20,100 170,498 20,923 18,171 43,454 47,680 42,294 16,560 9,047 17,595 19,878 53,005 U.S. Treasury (1) 479,206 20,100 170,498 20,923 18,171 43,454 47,680 42,294 16,560 9,047 17,595 19,878 53,005 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) 457,466 19,188 162,763 19,974 17,347 41,482 45,517 40,376 15,808 8,636 16,797 18,976 50,601 Federal agency (2) 0 0 0 0 0 0 0 0 0 0 0 0 0 Repurchase agreements (4) 123,250 5,170 43,852 5,381 4,674 11,176 12,263 10,878 4,259 2,327 4,525 5,113 13,633 Term auction credit 150,000 1,500 93,606 2,400 8,160 13,577 3,245 2,825 2,075 42 900 3,354 18,316 Other loans 17,377 1 12,001 10 7 86 320 1,110 822 685 25 363 1,948 Net portfolio holdings of Maiden Lane LLC (5) 29,099 0 29,099 0 0 0 0 0 0 0 0 0 0 Items in process of collection 1,294 54 0 211 53 95 5 109 100 108 132 142 284 Bank premises 2,161 120 214 65 150 205 226 208 126 111 276 253 207 Other assets (6) 102,025 5,496 28,035 9,057 6,597 24,594 8,096 5,095 1,376 1,947 1,477 2,331 7,924 Interdistrict settlement account 0 + 4,100 -50,341 + 2,297 - 540 - 5,569 +26,610 +15,591 + 3,705 + 2,543 + 5,539 + 3,314 - 7,248 Total assets 919,035 37,119 331,836 40,979 37,920 88,830 100,001 79,401 29,492 17,091 30,982 35,636 89,747 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. 4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 5. Fair value. Refer to the note on consolidation below. 6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. Note on consolidation: On June 26, 2008, the Federal Reserve Bank of New York extended a loan under the authority of section 13(3) of the Federal Reserve Act to Maiden Lane LLC, a limited liability company formed to acquire certain assets of Bear Stearns. The Federal Reserve Bank of New York is the primary beneficiary of Maiden Lane LLC. Consistent with generally accepted accounting principles, the assets and liabilities of Maiden Lane LLC have been consolidated with the assets and liabilities of the Federal Reserve Bank of New York in the preparation of the statements of condition shown on this release. As a consequence of the consolidation, the extension of credit from the Federal Reserve Bank of New York to Maiden Lane LLC is eliminated, the net assets of Maiden Lane LLC appear as an asset in this table (and table 1 and table 4), and the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including those with recourse only to the portfolio holdings of Maiden Lane LLC, are included in other liabilities on the next page (and in table 1 and table 4). 5. Statement of Condition of Each Federal Reserve Bank, July 30, 2008 (continued) Millions of dollars Kansas San Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis City Dallas Francisco Liabilities Federal Reserve notes outstanding 990,738 36,995 351,207 40,469 38,605 80,386 120,932 82,319 30,575 17,728 31,372 55,533 104,617 Less: Notes held by F.R. Banks 195,175 5,034 59,566 7,279 6,885 13,032 30,424 13,141 3,574 2,864 3,370 23,801 26,205 Federal Reserve notes, net 795,563 31,960 291,640 33,190 31,719 67,354 90,509 69,178 27,001 14,864 28,002 31,732 78,412 Reverse repurchase agreements (1) 44,463 1,865 15,820 1,941 1,686 4,032 4,424 3,924 1,536 839 1,633 1,844 4,918 Deposits 33,417 1,143 14,356 849 1,021 6,489 1,336 3,174 392 236 602 974 2,845 Depository institutions 28,712 1,133 9,821 845 1,017 6,364 1,333 3,170 378 235 600 973 2,842 U.S. Treasury, general account 4,271 0 4,271 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 333 8 193 0 1 114 0 1 14 0 1 0 0 Deferred availability cash items 3,225 160 0 380 654 248 227 252 43 369 187 272 433 Other liabilities and accrued dividends (2,3) 1,985 141 -308 155 165 396 345 275 143 100 122 165 285 Total liabilities 878,652 35,269 321,508 36,516 35,245 78,520 96,840 76,803 29,115 16,409 30,546 34,988 86,893 Capital Capital paid in 19,937 787 5,065 2,335 1,337 5,189 1,561 1,281 182 322 211 267 1,401 Surplus 18,501 1,050 4,664 1,814 1,291 4,998 1,425 815 180 355 194 364 1,351 Other capital 1,946 13 600 315 46 124 174 501 15 6 32 17 102 Total liabilities and capital 919,035 37,119 331,836 40,979 37,920 88,830 100,001 79,401 29,492 17,091 30,982 35,636 89,747 Note: Components may not sum to totals because of rounding. 1. Cash value of agreements, which are collateralized by U.S. Treasury securities. 2. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments. 3. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to the note on consolidation on the previous page. 6. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts Millions of dollars Federal Reserve notes and collateral Wednesday Jul 30, 2008 Federal Reserve notes outstanding 990,738 Less: Notes held by F.R. Banks not subject to collateralization 195,175 Federal Reserve notes to be collateralized 795,563 Collateral held against Federal Reserve notes 795,563 Gold certificate account 11,037 Special drawing rights certificate account 2,200 U.S. Treasury and agency securities pledged (1) 558,980 Other assets pledged 223,346 Memo: Total U.S. Treasury and agency securities (1) 602,456 Less: Face value of securities under reverse repurchase agreements 43,475 U.S. Treasury and agency securities eligible to be pledged 558,980 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.