For Release at 4:30 P.M. Eastern time October 30, 2008 The Board's H.4.1 statistical release, "Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks," has been modified to include information related to Commercial Paper Funding Facility LLC (CPFF LLC). This LLC is a limited liability company that was formed to purchase three-month U.S. dollar-denominated commercial paper from eligible issuers and thereby foster liquidity in short-term funding markets and increase the availability of credit for businesses and households. On October 27, 2008, the Federal Reserve Bank of New York (FRBNY) extended credit to CPFF LLC under the authority of section 13(3) of the Federal Reserve Act. Consistent with generally accepted accounting principles, the assets and liabilities of CPFF LLC have been consolidated with the assets and liabilities of the FRBNY in the preparation of the statements of condition shown on the release because the FRBNY is the sole beneficiary of CPFF LLC. The consequences of this consolidation appear on the release in the following ways. The extension of credit from the FRBNY to CPFF LLC is eliminated as is the accrued interest on this loan. The net portfolio holdings of CPFF LLC appear as an asset on the statement of condition of the FRBNY (table 6), the consolidated statement of condition of all Federal Reserve Banks (table 5), and factors affecting reserve balances of depository institutions (table 1). Information on CPFF LLC is presented separately in a new table 4, "Information on Principal Accounts of Commercial Paper Funding Facility LLC." This table presents the net portfolio holdings of CPFF LLC, which comprises the book value of the commercial paper holdings of CPFF LLC, including amortized cost and related fees, and other investments of the LLC. The table also presents the face value of the commercial paper holdings of CPFF LLC. In addition, the table presents the outstanding principal of the loan extended by the FRBNY and accrued interest payable to the FRBNY. 1 FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks October 30, 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 Oct 29, 2008 Oct 22, 2008 Oct 31, 2007 Oct 29, 2008 Reserve Bank credit 1,872,948 + 69,648 +1,010,315 1,953,486 Securities held outright 490,382 - 251 - 289,186 490,089 U.S. Treasury (1) 476,485 - 43 - 303,083 476,469 Bills (2) 18,423 0 - 248,596 18,423 Notes and bonds, nominal (2) 410,757 0 - 61,220 410,757 Notes and bonds, inflation-indexed (2) 40,806 0 + 4,888 40,806 Inflation compensation (3) 6,499 - 43 + 1,845 6,484 Federal agency (2) 13,897 - 208 + 13,897 13,620 Repurchase agreements (4) 80,000 0 + 38,750 80,000 Term auction credit 301,363 + 38,271 + 301,363 301,363 Other loans 388,809 - 29,771 + 388,526 369,763 Primary credit 111,946 + 6,192 + 111,756 110,737 Secondary credit 1 + 1 + 1 0 Seasonal credit 17 - 2 - 76 16 Primary dealer and other broker-dealer credit (5) 87,393 - 23,862 + 87,393 79,453 Asset-backed commercial paper money market mutual fund liquidity facility 99,902 - 14,317 + 99,902 96,010 Other credit extensions 89,549 + 2,217 + 89,549 83,548 Net portfolio holdings of Commercial Paper Funding Facility LLC (6) 40,819 + 40,819 + 40,819 144,808 Net portfolio holdings of Maiden Lane LLC (7) 26,809 - 2,328 + 26,809 26,848 Float -1,240 - 192 - 510 -1,234 Other Federal Reserve assets 546,006 + 23,100 + 503,744 541,849 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 2,200 0 0 2,200 Treasury currency outstanding (8) 38,787 + 14 + 92 38,787 Total factors supplying reserve funds 1,924,976 + 69,662 +1,010,406 2,005,515 Note: Components may not sum to totals because of rounding. Footnotes appear on the following page. H.4.1 1. Factors Affecting Reserve Balances of Depository Institutions, continued 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 Oct 29, 2008 Oct 22, 2008 Oct 31, 2007 Oct 29, 2008 Currency in circulation (8) 857,448 + 2,931 + 44,366 860,588 Reverse repurchase agreements (9) 94,323 - 3,787 + 56,192 94,655 Foreign official and international accounts 69,323 - 3,787 + 31,192 69,655 Dealers 25,000 0 + 25,000 25,000 Treasury cash holdings 269 - 7 - 39 272 Deposits with F.R. Banks, other than reserve balances 667,566 + 112,639 + 655,561 585,724 U.S. Treasury, general account 100,736 + 77,570 + 95,786 19,484 U.S. Treasury, supplementary financing account 558,864 + 34,093 + 558,864 558,864 Foreign official 174 - 80 + 5 187 Service-related 5,998 - 140 - 587 5,998 Required clearing balances 5,998 - 140 - 587 5,998 Adjustments to compensate for float 0 0 0 0 Other 1,794 + 1,196 + 1,493 1,192 Other liabilities and capital (10) 44,446 - 1,767 + 2,265 44,298 Total factors, other than reserve balances, absorbing reserve funds 1,664,052 + 110,008 + 758,344 1,585,536 Reserve balances with Federal Reserve Banks 260,924 - 40,346 + 252,062 419,979 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. Includes credit extended through the Primary Dealer Credit Facility and credit extended to certain other broker-dealers. 6. Refer to table 4 and the notes on consolidation accompanying table 6. 7. Fair value. Refer to table 3 and the notes on consolidation accompanying table 6. 8. Estimated. 9. Cash value of agreements, which are collateralized by U.S. Treasury securities. 10. Includes the liabilities of Maiden Lane LLC and Commercial Paper Funding Facility LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of these entities. Refer to tables 3 and 4 and the notes on consolidation accompanying table 6. Sources: Federal Reserve Banks and the U.S. Department of the Treasury. 1A. Memorandum Items Millions of dollars Averages of daily figures Memorandum item Week ended Change from week ended Wednesday Oct 29, 2008 Oct 22, 2008 Oct 31, 2007 Oct 29, 2008 Marketable securities held in custody for foreign official and international accounts (1) 2,486,192 + 7,455 + 453,932 2,484,075 U.S. Treasury 1,571,174 + 15,874 + 339,696 1,574,970 Federal agency 915,018 - 8,419 + 114,236 909,104 Securities lent to dealers 222,566 - 564 + 214,468 219,019 Overnight facility (2) 25,067 - 564 + 16,969 21,520 Term facility (3) 197,499 0 + 197,499 197,499 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 other highly rated debt securities. 2. Maturity Distribution of Term Auction Credit, Other Loans, and Securities, October 29, 2008 Millions of dollars Remaining maturity Within 15 16 days to 91 days to Over 1 year Over 5 years Over 10 All days 90 days 1 year to 5 years to 10 years years Term auction credit 25,000 276,363 --- --- --- --- 301,363 Other loans (1) 185,095 108,644 10,176 65,848 --- --- 369,763 U.S. Treasury securities (2) Holdings 15,320 30,724 61,340 173,435 94,317 101,333 476,469 Weekly changes - 3,520 + 3,517 0 - 14 - 10 - 17 - 43 Federal agency securities Holdings 651 9,235 3,734 0 0 0 13,620 Weekly changes - 219 + 227 - 493 0 0 0 - 485 Commercial paper held by Commercial Paper Funding Facility LLC (3) 0 145,713 0 --- --- --- 145,713 Repurchase agreements (4) 40,000 40,000 --- --- --- --- 80,000 Reverse repurchase agreements (4) 94,655 0 --- --- --- --- 94,655 Note: Components may not sum to totals because of rounding. --- Not applicable. 1. Excludes the loans from the Federal Reserve Bank of New York to Maiden Lane LLC and Commercial Paper Funding Facility LLC that were 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. Face value of commercial paper held by Commercial Paper Funding Facility LLC. 4. Cash value of agreements. H.4.1 3. Information on Principal Accounts of Maiden Lane LLC Millions of dollars Wednesday Account name Oct 29, 2008 Net portfolio holdings of Maiden Lane LLC (1) 26,848 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) 214 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3) 1,176 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, 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 notes on consolidation accompanying table 6. 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 5 and table 6. 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. 4. Information on Principal Accounts of Commercial Paper Funding Facility LLC Millions of dollars Wednesday Account name Oct 29, 2008 Commercial paper holdings, net (1) 143,914 Other investments, net 894 Net portfolio holdings of Commercial Paper Funding Facility LLC 144,808 Memorandum: Commercial paper holdings, face value 145,713 Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2) 144,777 Accrued interest payable to the Federal Reserve Bank of New York (2) 6 1. Book value, which includes amortized cost and related fees. 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 notes on consolidation accompanying table 6. Note: On October 27, 2008, the Federal Reserve Bank of New York began extending loans under the authority of section 13(3) of the Federal Reserve Act to Commercial Paper Funding Facility LLC. This LLC is a limited liability company that was formed to purchase three-month U.S.dollar-denominated commercial paper from eligible issuers and thereby foster liquidity in short-term funding markets and increase the availability of credit for businesses and households. H.4.1 5. Consolidated Statement of Condition of All Federal Reserve Banks Millions of dollars Eliminations Change since from Wednesday Wednesday Wednesday Assets, liabilities, and capital consolidation Oct 29, 2008 Oct 22, 2008 Oct 31, 2007 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 2,200 0 0 Coin 1,645 + 61 + 394 Securities, repurchase agreements, term auction credit, and other loans 1,241,215 - 650 + 413,037 Securities held outright 490,089 - 528 - 289,497 U.S. Treasury (1) 476,469 - 43 - 303,117 Bills (2) 18,423 0 - 248,596 Notes and bonds, nominal (2) 410,757 0 - 60,227 Notes and bonds, inflation-indexed (2) 40,806 0 + 3,895 Inflation compensation (3) 6,484 - 42 + 1,812 Federal agency (2) 13,620 - 485 + 13,620 Repurchase agreements (4) 80,000 0 + 31,500 Term auction credit 301,363 + 38,271 + 301,363 Other loans 369,763 - 38,393 + 369,671 Net portfolio holdings of Commercial Paper Funding Facility LLC (5) 144,808 + 144,808 + 144,808 Net portfolio holdings of Maiden Lane LLC (6) 26,848 + 46 + 26,848 Items in process of collection (358) 1,083 + 79 - 1,127 Bank premises 2,174 + 2 + 56 Other assets (7) 539,670 + 22,127 + 499,734 Total assets (358) 1,970,680 + 166,472 +1,083,751 Liabilities Federal Reserve notes, net of F.R. Bank holdings 823,713 + 3,817 + 45,558 Reverse repurchase agreements (8) 94,655 - 1,332 + 56,600 Deposits (0) 1,005,698 + 163,496 + 979,783 Depository institutions 425,972 + 199,069 + 405,252 U.S. Treasury, general account 19,484 - 36,141 + 15,177 U.S. Treasury, supplementary financing account 558,864 - 123 + 558,864 Foreign official 187 + 33 - 414 Other (0) 1,192 + 659 + 905 Deferred availability cash items (358) 2,317 - 41 - 638 Other liabilities and accrued dividends (9,10) 3,879 - 28 - 1,845 Total liabilities (358) 1,930,261 + 165,911 +1,079,458 Capital accounts Capital paid in 20,314 - 3 + 2,367 Surplus 18,335 + 639 + 2,880 Other capital accounts 1,769 - 76 - 955 Total capital 40,418 + 559 + 4,292 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. Refer to table 4 and the notes on consolidation accompanying table 6. 6. Fair value. Refer to table 3 and the notes on consolidation accompanying table 6. 7. Includes assets denominated in foreign currencies and any exchange-translation assets, which are revalued daily at market exchange rates. 8. Cash value of agreements, which are collateralized by U.S. Treasury securities. 9. Includes any exchange-translation liabilities, which are revalued daily at market exchange rates. 10. Includes the liabilities of Maiden Lane LLC and Commercial Paper Funding Facility LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of these entities. Refer to the notes on consolidation accompanying table 6. H.4.1 6. Statement of Condition of Each Federal Reserve Bank, October 29, 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 1,645 51 76 129 133 220 217 189 47 55 114 183 232 Securities, repurchase agreements, term auction credit, and other loans 1,241,215 134,465 587,368 31,515 37,980 136,108 72,479 59,734 22,914 16,023 25,753 27,843 89,034 Securities held outright 490,089 20,556 174,371 21,398 18,584 44,441 48,763 43,255 16,936 9,252 17,995 20,329 54,209 U.S. Treasury (1) 476,469 19,985 169,525 20,803 18,068 43,205 47,408 42,053 16,465 8,995 17,495 19,764 52,703 Bills (2) 18,423 773 6,555 804 699 1,671 1,833 1,626 637 348 676 764 2,038 Notes and bonds (3) 458,047 19,212 162,970 19,999 17,369 41,535 45,575 40,427 15,828 8,647 16,818 19,000 50,665 Federal agency (2) 13,620 571 4,846 595 516 1,235 1,355 1,202 471 257 500 565 1,507 Repurchase agreements (4) 80,000 3,356 28,464 3,493 3,034 7,254 7,960 7,061 2,765 1,510 2,937 3,318 8,849 Term auction credit 301,363 14,500 140,138 2,505 15,860 69,047 15,515 7,467 3,000 5,060 670 3,506 24,095 Other loans 369,763 96,053 244,396 4,119 502 15,366 241 1,951 214 200 4,150 690 1,881 Net portfolio holdings of Commercial Paper Funding Facility LLC (5) 144,808 0 144,808 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Maiden Lane LLC (6) 26,848 0 26,848 0 0 0 0 0 0 0 0 0 0 Items in process of collection 1,441 33 0 203 194 93 279 27 9 131 82 109 279 Bank premises 2,174 122 211 64 150 217 226 207 130 111 275 252 210 Other assets (7) 539,670 30,171 142,881 51,363 36,712 141,202 41,228 24,153 5,561 10,215 5,987 10,809 39,390 Interdistrict settlement account 0 - 79,469 + 268,914 - 31,948 - 20,558 - 114,218 - 4,767 + 1,416 + 3,771 - 8,544 + 4,924 + 1,270 - 20,790 Total assets 1,971,038 85,912 1,175,914 51,862 55,139 164,659 111,048 86,851 32,847 18,220 37,549 41,199 109,838 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. Refer to table 4 and the notes on consolidation below. 6. Fair value. Refer to the notes on consolidation below. 7. Includes assets denominated in foreign currencies and any exchange-translation assets, which are revalued daily at market exchange rates. Notes on consolidation: On June 26, 2008, the Federal Reserve Bank of New York (FRBNY) 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 FRBNY 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 FRBNY in the preparation of the statements of condition shown on this release. As a consequence of the consolidation, the extension of credit from the FRBNY 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 5), and the liabilities of Maiden Lane LLC to entities other than the FRBNY, 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 5). On October 27, 2008, the Federal Reserve Bank of New York (FRBNY) began extending loans under the authority of section 13(3) of the Federal Reserve Act to Commercial Paper Funding Facility LLC (CPFF LLC). This LLC is a limited liability company that was formed to purchase three-month U.S. dollar-denominated commercial paper from eligible issuers. The FRBNY is the sole beneficiary of CPFF LLC. Consistent with generally accepted accounting principles, the assets and liabilities of CPFF LLC 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 extension of credit from the FRBNY to CPFF LLC is eliminated; the net assets of CPFF LLC appear as an asset in this table (and table 1 and table 5), and the liabilities of CPFF LLC to entities other than the FRBNY are included in other liabilities on the next page (and table 1 and table 5). 6. Statement of Condition of Each Federal Reserve Bank, October 29, 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 996,782 38,468 351,224 42,398 44,935 82,232 120,284 80,137 29,703 17,383 30,429 54,578 105,010 Less: Notes held by F.R. Banks 173,069 5,626 41,278 6,032 7,914 11,679 28,642 13,040 3,402 2,731 3,425 23,131 26,168 Federal Reserve notes, net 823,713 32,842 309,946 36,366 37,021 70,554 91,642 67,097 26,301 14,652 27,003 31,447 78,842 Reverse repurchase agreements (8) 94,655 3,970 33,678 4,133 3,589 8,583 9,418 8,354 3,271 1,787 3,476 3,926 10,470 Deposits 1,005,698 46,959 821,463 5,997 10,807 73,539 6,066 9,347 2,717 760 6,404 4,747 16,890 Depository institutions 425,972 46,929 241,944 5,993 10,803 73,408 6,063 9,344 2,692 760 6,402 4,746 16,887 U.S. Treasury, general account 19,484 0 19,484 0 0 0 0 0 0 0 0 0 0 U.S. Treasury, supplementary financing account 558,864 0 558,864 0 0 0 0 0 0 0 0 0 0 Foreign official 187 2 157 4 3 11 3 2 0 1 0 1 3 Other 1,192 28 1,015 0 1 121 0 0 24 0 1 1 0 Deferred availability cash items 2,675 50 0 492 428 291 244 195 24 219 104 240 388 Other liabilities and accrued dividends (9,10) 3,879 167 1,168 205 200 523 397 305 153 108 130 180 343 Total liabilities 1,930,620 83,988 1,166,255 47,192 52,046 153,490 107,768 85,297 32,466 17,527 37,117 40,541 106,933 Capital Capital paid in 20,314 784 5,162 2,331 1,525 5,832 1,602 685 182 323 206 268 1,413 Surplus 18,335 1,050 4,497 1,814 1,291 4,999 1,426 816 180 355 193 364 1,351 Other capital 1,769 89 0 524 278 337 253 53 19 15 33 26 141 Total liabilities and capital 1,971,038 85,912 1,175,914 51,862 55,139 164,659 111,048 86,851 32,847 18,220 37,549 41,199 109,838 Note: Components may not sum to totals because of rounding. 8. Cash value of agreements, which are collateralized by U.S. Treasury securities. 9. Includes any exchange-translation liabilities, which are revalued daily at market exchange rates. 10. Includes the liabilities of Maiden Lane LLC and Commercial Paper Funding Facility LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of these entities. Refer to the notes on consolidation on the previous page. H.4.1 7. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts Millions of dollars Federal Reserve notes and collateral Wednesday Oct 29, 2008 Federal Reserve notes outstanding 996,782 Less: Notes held by F.R. Banks not subject to collateralization 173,069 Federal Reserve notes to be collateralized 823,713 Collateral held against Federal Reserve notes 823,713 Gold certificate account 11,037 Special drawing rights certificate account 2,200 U.S. Treasury and agency securities pledged (1) 480,457 Other assets pledged 330,019 Memo: Total U.S. Treasury and agency securities (1) 570,089 Less: Face value of securities under reverse repurchase agreements 89,632 U.S. Treasury and agency securities eligible to be pledged 480,457 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.