Federal Reserve Statistical Release, H.4.1, Factors Affecting Reserve Balances; title with eagle logo links to Statistical Release home page
Release Date:  July 03, 2008
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For Release at
4:30 P.M. Eastern time
  July 3, 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 Maiden Lane LLC, a
limited liability company formed to facilitate the arrangements associated
with JPMorgan Chase & Co.'s acquisition of Bear Stearns Companies, Inc.

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.

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 the release because the FRBNY is the primary beneficiary of Maiden
Lane LLC.

The consequences of this consolidation appear on the release in the following
ways.  The extension of credit from the FRBNY to Maiden Lane LLC is eliminated
as is the accrued interest on this loan.  The net portfolio holdings of Maiden
Lane LLC appear as an asset on the statement of condition of the FRBNY (table
5), the consolidated statement of condition of all Federal Reserve Banks
(table 4), and factors affecting reserve balances of depository institutions
(table 1).  The liabilities of Maiden Lane LLC to entities other than the
FRBNY are included in "other liabilities and capital" in table 1 and in "other
liabilities and accrued dividends" in table 4 and table 5.

Information on the LLC is presented separately in the newly created table 2,
"Information on Principal Accounts of Maiden Lane LLC."  This table presents
the fair value of the net portfolio holdings of the LLC along with the book
value of the outstanding principal of the loan extended by the FRBNY, the book
value of accrued interest payable to the FRBNY, and the book value of
outstanding principal and accrued interest on the loan payable to JPMorgan
Chase & Co.  Information pertaining to fair values will be updated quarterly.




  July 3, 2008



Explanatory Note for H.4.1 release of July 3, 2008



The weekly average value of net portfolio holdings of Maiden Lane LLC reflects
holdings from Thursday June 26, 2008, through Wednesday July 2, 2008.  The
holdings for the first six days of this week are based on values as of March
14, 2008.  The holdings for the last day were valued as of June 26, 2008.






FEDERAL RESERVE statistical release
 

H.4.1
Factors Affecting Reserve Balances of Depository Institutions and
Condition Statement of Federal Reserve Banks
July 3, 2008
1. Factors Affecting Reserve Balances of Depository Institutions
Millions of dollars
Reserve Bank credit, related items, and
reserve balances of depository institutions at
Federal Reserve Banks
Averages of daily figures Wednesday
Jul 2, 2008
Week ended
Jul 2, 2008
Change from week ended
Jun 25, 2008 Jul 4, 2007
                                                              
Reserve Bank credit                                         890,030     +  15,448     +  32,542       871,653 
  Securities held outright                                  478,838     +      65     - 311,693       478,866 
    U.S. Treasury (1)                                       478,838     +      65     - 311,693       478,866 
      Bills (2)                                              21,740             0     - 255,279        21,740 
      Notes and bonds, nominal (2)                          412,392             0     -  62,280       412,392 
      Notes and bonds, inflation-indexed (2)                 39,171             0     +   4,712        39,171 
      Inflation compensation (3)                              5,535     +      65     +   1,154         5,563 
    Federal agency (2)                                            0             0             0             0 
  Repurchase agreements (4)                                 110,250     -  11,429     +  83,071       113,000 
  Term auction credit                                       150,000             0     + 150,000       150,000 
  Other loans                                                16,780     -   4,094     +  16,584        12,920 
    Primary credit                                           14,861     +     159     +  14,843        12,814 
    Secondary credit                                             86     +      86     +      86             0 
    Seasonal credit                                              95     +      18     -      83           105 
    Primary dealer credit facility                           1,738    -   4,357    +   1,738            0 
    Other credit extensions                                       0             0             0             0 
  Net portfolio holdings of Maiden Lane LLC (5)              29,816     +  29,816     +  29,816        28,893 
  Float                                                      -1,518     -     373     -     555       -18,288 
  Other Federal Reserve assets                              105,864     +   1,462     +  65,319       106,262 
Gold stock                                                   11,041             0             0        11,041 
Special drawing rights certificate account                    2,200             0             0         2,200 
Treasury currency outstanding (6)                            38,861     +      14     +     340        38,861 
                                                              
Total factors supplying reserve funds                       942,132     +  15,462     +  32,882       923,755 
                                                                          
Currency in circulation (6)                                 826,758     +   3,811     +  11,951       832,369 
Reverse repurchase agreements (7)                            42,177     +   1,803     +   9,983        41,091 
  Foreign official and international accounts                42,177     +   1,803     +   9,983        41,091 
  Dealers                                                         0             0             0             0 
Treasury cash holdings                                          278     +       2     -      31           275 
Deposits with F.R. Banks, other than reserve balances        12,480     -      31     +   1,104        11,553 
  U.S. Treasury, general account                              5,042     -      28     +     435         4,139 
  Foreign official                                              129     +      29     -      11           109 
  Service-related                                             7,053     -       2     +     659         7,054 
    Required clearing balances                                7,053     -       2     +     659         7,054 
    Adjustments to compensate for float                           0             0             0             0 
  Other                                                         256     -      29     +      19           251 
Other liabilities and capital (8)                            46,473     +   2,020     +   6,967        45,431 
                                                              
Total factors, other than reserve balances,                                                       
   absorbing reserve funds                                  928,166     +   7,605     +  29,974       930,717 
                                                              
Reserve balances with Federal Reserve Banks                  13,965     +   7,856     +   2,907        -6,962 
                                                                
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 2, 2008
Millions of dollars
Memorandum item Averages of daily figures Wednesday
Jul 2, 2008
Week ended
Jul 2, 2008
Change from week ended
Jun 25, 2008 Jul 4, 2007
                                                              
Marketable securities held in custody for foreign             
      official and international accounts (1)             2,345,653     +  23,278     + 363,485     2,347,266 
  U.S. Treasury                                           1,373,770     +  20,336     + 133,108     1,377,312 
  Federal agency                                            971,882     +   2,941     + 230,375       969,953 
Securities lent to dealers                                  117,482     +   5,410     + 107,341       113,939 
  Overnight facility (2)                                     13,238     +   7,626     +   3,097         9,842 
  Term facility (3)                                         104,244     -   2,216     + 104,244       104,097 
 

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
Account name Wednesday
Jul 2, 2008
                                                                                                
Net portfolio holdings of Maiden Lane LLC (1)                                                       28,893    
                                                                                                
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)                                    12    
Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3)        1,151    
 
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 26, 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 2, 2008
Millions of dollars
  U.S. Treasury
securities (2)
 
Remaining maturity Term
auction
credit
Other
loans
(1)
Holdings Weekly
changes
Repurchase
agreements
(3)
Reverse
repurchase
agreements
(3)
Within 15 days                150,000          3,654        3,409     -   2,446       73,000         41,091  
16 days to 90 days                  0          9,266       41,661     +   2,460       40,000              0  
91 days to 1 year                 ---              0       73,632     -   2,349          ---            ---  
Over 1 year to 5 years            ---            ---      173,465     +   2,362          ---            ---  
Over 5 years to 10 years          ---            ---       90,136     +      15          ---            ---  
Over 10 years                     ---            ---       96,563     +      28          ---            ---  
          
All                           150,000         12,920      478,866     +      70      113,000         41,091  
 

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
Assets, liabilities, and capital Eliminations
from
consolidation
  Change since
Wednesday
Jul 2, 2008
Wednesday
Jun 25, 2008
Wednesday
Jul 4, 2007
Assets                                                   
Gold certificate account                                         11,037                0                   0
Special drawing rights certificate account                        2,200                0                   0
Coin                                                              1,317        -      16           +     393
Securities, repurchase agreements, term auction          
      credit, and other loans                                   754,785        -  19,164           -  66,204
  Securities held outright                                      478,866        +      70           - 311,687
    U.S. Treasury (1)                                           478,866        +      70           - 311,687
      Bills (2)                                                  21,740                0           - 255,279
      Notes and bonds, nominal (2)                              412,392                0           -  62,280
      Notes and bonds, inflation-indexed (2)                     39,171                0           +   4,712
      Inflation compensation (3)                                  5,563        +      69           +   1,160
    Federal agency (2)                                                0                0                   0
  Repurchase agreements (4)                                     113,000        -  16,750           +  82,750
  Term auction credit                                           150,000                0           + 150,000
  Other loans                                                    12,920        -   2,482           +  12,734
Net portfolio holdings of Maiden Lane LLC (5)                    28,893        +  28,893           +  28,893
Items in process of collection                       (659)        1,234        +      21           -   3,682
Bank premises                                                     2,154                0           +     109
Other assets (6)                                                104,120        +   1,795           +  65,832
                                                         
      Total assets                                   (659)      905,739        +  11,527           +  25,340
                                                         
Liabilities                                              
Federal Reserve notes, net of F.R. Bank holdings                795,095        +   7,132           +  13,719
Reverse repurchase agreements (7)                                41,091        -     958           +   8,882
Deposits                                               (0)       20,730        +   3,343           -     508
  Depository institutions                                        16,232        +   3,399           -     523
  U.S. Treasury, general account                                  4,139        -      69           +      22
  Foreign official                                                  109        +       9           +      13
  Other                                                (0)          251        +       5           -      18
Deferred availability cash items                     (659)        3,393        +     765           -   2,429
Other liabilities and accrued dividends (8,9)                     4,549        +     752           -   1,116
                                                         
      Total liabilities                              (659)      864,857        +  11,033           +  18,546
                                                         
Capital accounts                                         
Capital paid in                                                  19,876        -       1           +   3,713
Surplus                                                          18,493        +       7           +   3,094
Other capital accounts                                            2,512        +     488           -      15
                                                         
      Total capital                                              40,882        +     495           +   6,794
 

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 2, 2008
Millions of dollars
Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas
City
Dallas San
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                                           1,317          38          56         101         113         161         150         163          50          55          93         147         188 
Securities, repurchase agreements, term                            
      auction credit, and other loans        754,785      26,327     320,148      26,124      25,332      64,531      65,557      57,274      22,607      11,453      22,082      27,468      85,883 
  Securities held outright                   478,866      20,085     170,377      20,908      18,158      43,423      47,646      42,264      16,548       9,040      17,583      19,864      52,968 
    U.S. Treasury (1)                        478,866      20,085     170,377      20,908      18,158      43,423      47,646      42,264      16,548       9,040      17,583      19,864      52,968 
      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)                    457,126      19,174     162,642      19,959      17,334      41,451      45,483      40,346      15,797       8,630      16,785      18,962      50,563 
    Federal agency (2)                             0           0           0           0           0           0           0           0           0           0           0           0           0 
  Repurchase agreements (4)                  113,000       4,740      40,205       4,934       4,285      10,247      11,243       9,973       3,905       2,133       4,149       4,687      12,499 
  Term auction credit                        150,000       1,500     100,265         240       2,810      10,806       6,435       4,100       2,016          18         300       2,900      18,611 
  Other loans                                 12,920           2       9,302          42          79          56         232         936         139         262          50          17       1,805 
Net portfolio holdings of Maiden Lane                              
      LLC (5)                                 28,893           0      28,893           0           0           0           0           0           0           0           0           0           0 
Items in process of collection                 1,892          77           0         229         394         166         118         182          43         152         139         176         216 
Bank premises                                  2,154         119         212          64         150         203         226         208         124         111         276         253         207 
Other assets (6)                             104,120       5,629      28,463       9,343       6,763      25,338       8,238       5,140       1,372       1,984       1,471       2,348       8,031 
Interdistrict settlement account                   0     + 4,873     -61,599     + 5,824     + 4,300     - 3,397     +22,094     +14,062     + 4,802     + 3,308     + 6,535     + 4,927     - 5,728 
                                                                   
      Total assets                           906,398      37,601     320,982      42,221      37,580      88,040      97,770      78,153      29,414      17,292      31,011      36,053      90,279 
 

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 2, 2008 (continued)
Millions of dollars
Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas
City
Dallas San
Francisco
Liabilities                                                         
Federal Reserve notes outstanding             988,324      37,332     346,099      40,779      38,716      80,827     120,084      83,096      30,681      17,861      31,488      55,773     105,589 
  Less: Notes held by F.R. Banks              193,229       4,567      60,051       6,458       6,931      12,476      31,312      12,759       3,626       2,742       3,240      23,267      25,798 
    Federal Reserve notes, net                795,095      32,765     286,047      34,320      31,784      68,351      88,773      70,337      27,055      15,118      28,247      32,505      79,791 
Reverse repurchase agreements (1)              41,091       1,724      14,620       1,794       1,558       3,726       4,088       3,627       1,420         776       1,509       1,704       4,545 
Deposits                                       20,730         883       7,619         956         555       4,738       1,029         922         330         266         476         731       2,225 
  Depository institutions                      16,232         874       3,216         952         552       4,686       1,026         920         316         265         475         730       2,222 
  U.S. Treasury, general account                4,139           0       4,139           0           0           0           0           0           0           0           0           0           0 
  Foreign official                                109           2          79           4           3          11           3           2           0           1           0           1           3 
  Other                                           251           6         186           0           0          42           0           0          14           0           1           1           0 
Deferred availability cash items                4,051         231           0         587         752         309         326         368          75         343         218         298         545 
Other liabilities and accrued                                                 
  dividends (2,3)                               4,549         140       2,320         146         158         374         334         271         148          95         121         162         279 
                                                                    
      Total liabilities                       865,516      35,742     310,606      37,803      34,808      77,499      94,550      75,523      29,029      16,597      30,572      35,401      87,386 
                                                                    
Capital                                                             
Capital paid in                                19,876         764       5,065       2,335       1,322       5,178       1,561       1,280         181         322         208         259       1,401 
Surplus                                        18,493       1,050       4,657       1,814       1,291       4,998       1,425         815         180         355         194         364       1,351 
Other capital                                   2,512          45         654         269         158         366         234         534          24          18          37          29         142 
                                                                    
      Total liabilities and capital              906,398    37,601    320,982    42,221    37,580    88,040    97,770    78,153    29,414    17,292    31,011    36,053    90,279 
                              
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 2, 2008
                                                                                            
Federal Reserve notes outstanding                                                                988,324 
  Less: Notes held by F.R. Banks not subject to collateralization                                193,229 
    Federal Reserve notes to be collateralized                                                   795,095 
Collateral held against Federal Reserve notes                                                    795,095 
  Gold certificate account                                                                        11,037 
  Special drawing rights certificate account                                                       2,200 
  U.S. Treasury and agency securities pledged (1)                                                551,564 
  Other assets pledged                                                                           230,294 
                                                                                            
Memo:                                                                                       
Total U.S. Treasury and agency securities (1)                                                    591,866 
  Less: Face value of securities under reverse repurchase agreements                              40,302 
    U.S. Treasury and agency securities eligible to be pledged                                   551,564 
   
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.

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