FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks August 14, 2008 1. Factors Affecting Reserve Balances of Depository Institutions Millions of dollars Reserve Bank credit, related items, and Averages of daily figures reserve balances of depository institutions at Week ended Change from week ended Wednesday Federal Reserve Banks Aug 13, 2008 Aug 6, 2008 Aug 15, 2007 Aug 13, 2008 Reserve Bank credit 883,000 - 6,150 + 15,319 895,117 Securities held outright 479,396 + 105 - 311,259 479,434 U.S. Treasury (1) 479,396 + 105 - 311,259 479,434 Bills (2) 21,740 0 - 255,279 21,740 Notes and bonds, nominal (2) 411,731 0 - 61,471 411,731 Notes and bonds, inflation-indexed (2) 39,832 0 + 4,079 39,832 Inflation compensation (3) 6,093 + 105 + 1,412 6,131 Federal agency (2) 0 0 0 0 Repurchase agreements (4) 105,786 - 4,714 + 69,500 118,250 Term auction credit 150,000 0 + 150,000 150,000 Other loans 17,807 + 344 + 17,536 17,651 Primary credit 17,699 + 329 + 17,688 17,552 Secondary credit 7 + 7 + 7 0 Seasonal credit 100 + 7 - 160 99 Primary dealer credit facility 0 0 0 0 Other credit extensions 0 0 0 0 Net portfolio holdings of Maiden Lane LLC (5) 29,145 + 40 + 29,145 29,179 Float -1,120 + 60 - 75 -991 Other Federal Reserve assets 101,987 - 1,984 + 60,473 101,594 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 2,200 0 0 2,200 Treasury currency outstanding (6) 38,761 + 14 + 199 38,761 Total factors supplying reserve funds 935,002 - 6,136 + 15,517 947,119 Currency in circulation (6) 831,170 - 397 + 18,810 832,192 Reverse repurchase agreements (7) 42,458 - 1,332 + 11,101 44,172 Foreign official and international accounts 42,458 - 1,332 + 11,101 44,172 Dealers 0 0 0 0 Treasury cash holdings 298 - 17 + 39 296 Deposits with F.R. Banks, other than reserve balances 12,510 + 147 + 846 12,142 U.S. Treasury, general account 4,859 - 21 + 124 4,715 Foreign official 319 + 204 + 224 101 Service-related 7,007 - 12 + 445 7,007 Required clearing balances 7,007 - 12 + 445 7,007 Adjustments to compensate for float 0 0 0 0 Other 325 - 23 + 52 319 Other liabilities and capital (8) 40,577 - 2,236 + 540 39,982 Total factors, other than reserve balances, absorbing reserve funds 927,013 - 3,835 + 31,336 928,783 Reserve balances with Federal Reserve Banks 7,990 - 2,300 - 15,818 18,335 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Cash value of agreements. 5. Fair value. Refer to table 2 and the note on consolidation accompanying table 5. 6. Estimated. 7. Cash value of agreements, which are collateralized by U.S. Treasury securities. 8. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to table 2 and the note on consolidation accompanying table 5. Sources: Federal Reserve Banks and the U.S. Department of the Treasury. 1A. Memorandum Items, August 13, 2008 Millions of dollars Averages of daily figures Memorandum item Week ended Change from week ended Wednesday Aug 13, 2008 Aug 6, 2008 Aug 15, 2007 Aug 13, 2008 Marketable securities held in custody for foreign official and international accounts (1) 2,394,883 - 801 + 390,062 2,394,588 U.S. Treasury 1,415,828 - 3,015 + 171,866 1,419,375 Federal agency 979,054 + 2,212 + 218,195 975,212 Securities lent to dealers 131,154 - 1,705 + 126,453 131,057 Overnight facility (2) 2,837 - 5,160 - 1,864 2,211 Term facility (3) 128,318 + 3,456 + 128,318 128,846 Note: Components may not sum to totals because of rounding. 1. Face value of the securities. Includes U.S. Treasury STRIPS and other zero-coupon bonds at face value. 2. Fully collateralized by U.S. Treasury securities. 3. Fully collateralized by U.S. Treasury securities, federal agency securities, and highly rated non-agency asset-backed and mortgage-backed securities. Sources: Federal Reserve Banks and the U.S. Department of the Treasury. 2. Information on Principal Accounts of Maiden Lane LLC Millions of dollars Wednesday Account name Aug 13, 2008 Net portfolio holdings of Maiden Lane LLC (1) 29,179 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) 87 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3) 1,160 1. Fair value. Fair value reflects an estimate of the price that would be received upon selling an asset if the transaction were to be conducted in an orderly market on the measurement date. Revalued quarterly. This table reflects valuations as of June 30, 2008. 2. Book value. This amount was eliminated when preparing the Federal Reserve Bank of New York's statement of condition consistent with consolidation under generally accepted accounting principles. Refer to the note on consolidation accompanying table 5. 3. Book value. The fair value of these obligations is included in other liabilities and capital in table 1 and in other liabilities and accrued dividends in table 4 and table 5. Note: On June 26, 2008, the Federal Reserve Bank of New York (FRBNY) extended credit to Maiden Lane LLC under the authority of section 13(3) of the Federal Reserve Act. This limited liability company was formed to acquire certain assets of Bear Stearns and to manage those assets through time to maximize repayment of the credit extended and to minimize disruption to financial markets. Payments by Maiden Lane LLC from the proceeds of the net portfolio holdings will be made in the following order: operating expenses of the LLC, principal due to the FRBNY, interest due to the FRBNY, principal due to JPMorgan Chase & Co., and interest due to JPMorgan Chase & Co. Any remaining funds will be paid to the FRBNY. 3. Maturity Distribution of Term Auction Credit, Other Loans, and Securities, August 13, 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 3,354 21,201 + 2,161 78,250 44,172 16 days to 90 days 0 14,297 25,759 - 2,162 40,000 0 91 days to 1 year --- 0 69,504 + 7 --- --- Over 1 year to 5 years --- --- 175,596 + 33 --- --- Over 5 years to 10 years --- --- 89,907 + 21 --- --- Over 10 years --- --- 97,467 + 43 --- --- All 150,000 17,651 479,434 + 104 118,250 44,172 Note: Components may not sum to totals because of rounding. --- Not applicable. 1. Excludes the loan from the Federal Reserve Bank of New York to Maiden Lane LLC that was eliminated when preparing that Bank's statement of condition consistent with consolidation under generally accepted accounting principles. The loan to Maiden Lane LLC is designed to be repaid from the orderly liquidation of Maiden Lane LLC's portfolio holdings and does not have a fixed amortization schedule. 2. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. 3. Cash value of agreements. 4. Consolidated Statement of Condition of All Federal Reserve Banks Millions of dollars Eliminations Change since from Wednesday Wednesday Wednesday Assets, liabilities, and capital consolidation Aug 13, 2008 Aug 6, 2008 Aug 15, 2007 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 2,200 0 0 Coin 1,378 - 1 + 340 Securities, repurchase agreements, term auction credit, and other loans 765,335 + 13,751 - 48,531 Securities held outright 479,434 + 104 - 310,167 U.S. Treasury (1) 479,434 + 104 - 310,167 Bills (2) 21,740 0 - 255,279 Notes and bonds, nominal (2) 411,731 0 - 60,411 Notes and bonds, inflation-indexed (2) 39,832 0 + 4,079 Inflation compensation (3) 6,131 + 104 + 1,443 Federal agency (2) 0 0 0 Repurchase agreements (4) 118,250 + 13,500 + 94,250 Term auction credit 150,000 0 + 150,000 Other loans 17,651 + 147 + 17,387 Net portfolio holdings of Maiden Lane LLC (5) 29,179 + 40 + 29,179 Items in process of collection (532) 1,600 - 914 - 908 Bank premises 2,162 + 2 + 95 Other assets (6) 99,435 - 1,860 + 63,245 Total assets (532) 912,326 + 11,019 + 43,422 Liabilities Federal Reserve notes, net of F.R. Bank holdings 795,101 - 747 + 19,312 Reverse repurchase agreements (7) 44,172 + 974 + 12,231 Deposits (0) 30,480 + 14,415 + 12,424 Depository institutions 25,345 + 14,483 + 12,780 U.S. Treasury, general account 4,715 - 83 - 394 Foreign official 101 0 + 5 Other (0) 319 + 16 + 33 Deferred availability cash items (532) 2,592 - 1,577 - 846 Other liabilities and accrued dividends (8,9) -136 - 1,848 - 6,103 Total liabilities (532) 872,209 + 11,217 + 37,019 Capital accounts Capital paid in 19,935 - 2 + 3,156 Surplus 18,505 + 3 + 3,093 Other capital accounts 1,678 - 197 + 155 Total capital 40,117 - 198 + 6,403 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 5. Fair value. Refer to table 2 and the note on consolidation accompanying table 5. 6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. 7. Cash value of agreements, which are collateralized by U.S. Treasury securities. 8. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments. 9. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to the note on consolidation accompanying table 5. 5. Statement of Condition of Each Federal Reserve Bank, August 13, 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 1,378 38 63 99 120 172 170 165 51 50 97 156 197 Securities, repurchase agreements, term auction credit, and other loans 765,335 28,279 311,704 29,021 33,587 65,758 66,116 56,464 23,340 12,132 23,972 29,009 85,952 Securities held outright 479,434 20,109 170,580 20,933 18,180 43,474 47,703 42,315 16,568 9,051 17,604 19,887 53,031 U.S. Treasury (1) 479,434 20,109 170,580 20,933 18,180 43,474 47,703 42,315 16,568 9,051 17,604 19,887 53,031 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) 457,694 19,197 162,845 19,984 17,356 41,503 45,540 40,396 15,816 8,641 16,806 18,986 50,626 Federal agency (2) 0 0 0 0 0 0 0 0 0 0 0 0 0 Repurchase agreements (4) 118,250 4,960 42,073 5,163 4,484 10,723 11,766 10,437 4,086 2,232 4,342 4,905 13,080 Term auction credit 150,000 3,200 87,052 2,895 10,910 11,077 6,360 2,850 2,475 46 2,000 3,854 17,281 Other loans 17,651 10 12,000 30 14 484 287 863 211 802 27 363 2,560 Net portfolio holdings of Maiden Lane LLC (5) 29,179 0 29,179 0 0 0 0 0 0 0 0 0 0 Items in process of collection 2,133 44 0 220 322 63 344 101 26 131 443 167 273 Bank premises 2,162 121 212 65 150 209 226 208 126 111 275 252 207 Other assets (6) 99,435 5,336 27,387 8,886 6,384 23,798 7,928 4,992 1,343 1,889 1,456 2,297 7,738 Interdistrict settlement account 0 + 3,016 -44,485 + 4,659 - 4,132 - 4,277 +23,116 +15,990 + 4,091 + 2,571 + 3,938 + 2,333 - 6,819 Total assets 912,859 37,373 328,869 43,486 36,958 86,761 99,287 79,045 29,392 17,112 30,596 34,948 89,031 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. 4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 5. Fair value. Refer to the note on consolidation below. 6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. Note on consolidation: On June 26, 2008, the Federal Reserve Bank of New York extended a loan under the authority of section 13(3) of the Federal Reserve Act to Maiden Lane LLC, a limited liability company formed to acquire certain assets of Bear Stearns. The Federal Reserve Bank of New York is the primary beneficiary of Maiden Lane LLC. Consistent with generally accepted accounting principles, the assets and liabilities of Maiden Lane LLC have been consolidated with the assets and liabilities of the Federal Reserve Bank of New York in the preparation of the statements of condition shown on this release. As a consequence of the consolidation, the extension of credit from the Federal Reserve Bank of New York to Maiden Lane LLC is eliminated, the net assets of Maiden Lane LLC appear as an asset in this table (and table 1 and table 4), and the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including those with recourse only to the portfolio holdings of Maiden Lane LLC, are included in other liabilities on the next page (and in table 1 and table 4). 5. Statement of Condition of Each Federal Reserve Bank, August 13, 2008 (continued) Millions of dollars Kansas San Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis City Dallas Francisco Liabilities Federal Reserve notes outstanding 991,705 36,984 352,127 40,436 38,662 80,539 120,868 82,415 30,553 17,836 31,483 55,438 104,364 Less: Notes held by F.R. Banks 196,604 5,229 58,752 7,068 7,419 12,995 30,904 13,654 3,584 2,963 3,787 24,149 26,101 Federal Reserve notes, net 795,101 31,754 293,376 33,368 31,243 67,544 89,964 68,762 26,970 14,872 27,697 31,289 78,263 Reverse repurchase agreements (1) 44,172 1,853 15,716 1,929 1,675 4,005 4,395 3,899 1,526 834 1,622 1,832 4,886 Deposits 30,480 1,618 12,006 3,186 523 4,357 1,238 3,295 318 376 473 771 2,320 Depository institutions 25,345 1,613 7,023 3,182 519 4,257 1,235 3,278 304 376 472 770 2,317 U.S. Treasury, general account 4,715 0 4,715 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 319 2 197 0 1 89 0 15 14 0 1 0 0 Deferred availability cash items 3,124 165 0 410 676 215 219 218 50 246 246 241 438 Other liabilities and accrued dividends (2,3) -136 143 -2,487 164 170 413 332 286 150 103 125 170 296 Total liabilities 872,741 35,532 318,611 39,056 34,286 76,534 96,148 76,458 29,014 16,433 30,163 34,303 86,203 Capital Capital paid in 19,935 787 5,068 2,328 1,342 5,189 1,562 1,281 182 321 210 267 1,398 Surplus 18,505 1,050 4,668 1,814 1,291 4,999 1,425 815 180 355 193 364 1,351 Other capital 1,678 5 522 288 39 39 152 490 16 4 30 14 79 Total liabilities and capital 912,859 37,373 328,869 43,486 36,958 86,761 99,287 79,045 29,392 17,112 30,596 34,948 89,031 Note: Components may not sum to totals because of rounding. 1. Cash value of agreements, which are collateralized by U.S. Treasury securities. 2. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments. 3. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to the note on consolidation on the previous page. 6. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts Millions of dollars Federal Reserve notes and collateral Wednesday Aug 13, 2008 Federal Reserve notes outstanding 991,705 Less: Notes held by F.R. Banks not subject to collateralization 196,604 Federal Reserve notes to be collateralized 795,101 Collateral held against Federal Reserve notes 795,101 Gold certificate account 11,037 Special drawing rights certificate account 2,200 U.S. Treasury and agency securities pledged (1) 554,113 Other assets pledged 227,750 Memo: Total U.S. Treasury and agency securities (1) 597,684 Less: Face value of securities under reverse repurchase agreements 43,570 U.S. Treasury and agency securities eligible to be pledged 554,113 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.