FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks December 23, 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 22, 2010 Federal Reserve Banks Dec 22, 2010 Dec 15, 2010 Dec 23, 2009 Reserve Bank credit 2,388,496 + 14,166 + 171,611 2,410,384 Securities held outright (1) 2,142,720 + 13,107 + 302,972 2,163,097 U.S. Treasury securities 986,545 + 25,749 + 209,973 1,007,237 Bills (2) 18,423 0 0 18,423 Notes and bonds, nominal (2) 915,315 + 25,488 + 207,666 934,527 Notes and bonds, inflation-indexed (2) 46,737 + 231 + 2,094 48,125 Inflation compensation (3) 6,070 + 29 + 212 6,162 Federal agency debt securities (2) 147,521 - 615 - 11,034 147,460 Mortgage-backed securities (4) 1,008,654 - 12,027 + 104,033 1,008,400 Repurchase agreements (5) 0 0 0 0 Term auction credit 0 0 - 75,918 0 Other loans 45,571 + 355 - 41,509 45,101 Primary credit 28 + 6 - 18,721 54 Secondary credit 0 0 - 960 0 Seasonal credit 28 0 - 9 26 Credit extended to American International Group, Inc., net (6) 20,625 + 545 + 340 20,272 Term Asset-Backed Securities Loan Facility (7) 24,890 - 197 - 22,159 24,750 Other credit extensions 0 0 0 0 Net portfolio holdings of Commercial Paper Funding Facility LLC (8) 0 0 - 14,044 0 Net portfolio holdings of Maiden Lane LLC (9) 26,916 - 509 + 337 26,929 Net portfolio holdings of Maiden Lane II LLC (10) 16,145 + 22 + 567 16,151 Net portfolio holdings of Maiden Lane III LLC (11) 23,122 + 23 + 479 23,129 Net portfolio holdings of TALF LLC (12) 653 + 6 + 373 665 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (13) 26,057 0 + 1,057 26,057 Float -1,594 + 140 - 10 -1,719 Central bank liquidity swaps (14) 75 + 15 - 11,997 75 Other Federal Reserve assets (15) 108,831 + 1,008 + 9,303 110,899 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 5,200 0 0 5,200 Treasury currency outstanding (16) 43,553 + 14 + 863 43,553 Total factors supplying reserve funds 2,448,290 + 14,180 + 172,474 2,470,178 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 22, 2010 Federal Reserve Banks Dec 22, 2010 Dec 15, 2010 Dec 23, 2009 Currency in circulation (16) 980,488 + 2,065 + 55,383 983,646 Reverse repurchase agreements (17) 51,256 + 1,202 - 9,787 51,134 Foreign official and international accounts 51,256 + 1,202 - 9,787 51,134 Others 0 0 0 0 Treasury cash holdings 178 - 6 - 51 185 Deposits with F.R. Banks, other than reserve balances 303,516 + 52,472 + 187,987 302,348 Term deposits held by depository institutions 5,113 0 + 5,113 5,113 U.S. Treasury, general account 91,479 + 61,386 - 3,472 89,913 U.S. Treasury, supplementary financing account 199,961 0 + 184,961 199,961 Foreign official 4,209 + 1,113 + 2,265 4,581 Service-related 2,359 - 2 - 666 2,359 Required clearing balances 2,359 - 2 - 666 2,359 Adjustments to compensate for float 0 0 0 0 Other 395 - 10,025 - 214 421 Funds from American International Group, Inc. asset dispositions, held as agent (18) 26,838 + 64 + 26,838 26,896 Other liabilities and capital (19) 73,172 - 672 + 5,432 72,590 Total factors, other than reserve balances, absorbing reserve funds 1,435,449 + 55,126 + 265,803 1,436,799 Reserve balances with Federal Reserve Banks 1,012,841 - 40,946 - 93,329 1,033,379 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight securities lending facility; 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 22, 2010 Memorandum item Dec 22, 2010 Dec 15, 2010 Dec 23, 2009 Marketable securities held in custody for foreign official and international accounts (1) 3,351,066 + 14,023 + 393,352 3,357,699 U.S. Treasury securities 2,620,365 + 13,596 + 433,093 2,625,051 Federal agency securities (2) 730,701 + 427 - 39,741 732,648 Securities lent to dealers 9,961 + 545 + 1,468 11,439 Overnight facility (3) 9,961 + 545 + 1,468 11,439 U.S. Treasury securities 8,756 + 425 + 1,128 10,396 Federal agency debt securities 1,205 + 120 + 340 1,043 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. 2. Maturity Distribution of Securities, Loans, and Selected Other Assets and Liabilities, December 22, 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) 80 0 0 45,021 0 ... 45,101 U.S. Treasury securities (2) Holdings 17,447 17,200 55,979 427,120 332,496 156,994 1,007,237 Weekly changes + 1,442 - 1,442 + 1 + 18,577 + 18,197 + 2,908 + 39,684 Federal agency debt securities (3) Holdings 0 7,466 35,298 71,752 30,597 2,347 147,460 Weekly changes - 424 + 1,302 - 1,302 0 0 0 - 424 Mortgage-backed securities (4) Holdings 0 0 0 25 21 1,008,355 1,008,400 Weekly changes 0 0 0 0 0 - 445 - 445 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) 75 0 0 0 0 0 75 Reverse repurchase agreements (6) 51,134 0 ... ... ... ... 51,134 Term deposits 5,113 0 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 22, 2010 Mortgage-backed securities held outright (1) 1,008,400 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 22, 2010 Net portfolio holdings of Maiden Lane LLC (1) 26,929 Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2) 25,228 Accrued interest payable to the Federal Reserve Bank of New York (2) 613 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3) 1,313 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 22, 2010 Net portfolio holdings of Maiden Lane II LLC (1) 16,151 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) 447 Deferred payment and accrued interest payable to subsidiaries of American International Group, Inc. (3) 1,070 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 22, 2010 Net portfolio holdings of Maiden Lane III LLC (1) 23,129 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) 541 Outstanding principal amount and accrued interest on loan payable to American International Group, Inc. (3) 5,361 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 22, 2010 Asset-backed securities holdings (1) 0 Other investments, net 665 Net portfolio holdings of TALF LLC 665 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 22, 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) 296 Preferred interests in AIA Aurora LLC (1) 16,676 Accrued dividends on preferred interests in AIA Aurora LLC (2) 190 Preferred interests in ALICO Holdings LLC (1) 9,380 Accrued dividends on preferred interests in ALICO Holdings LLC (2) 107 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 22, 2010 Wednesday Wednesday Assets, liabilities, and capital Dec 15, 2010 Dec 23, 2009 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 5,200 0 0 Coin 2,148 + 4 + 97 Securities, repurchase agreements, term auction credit, and other loans 2,208,198 + 38,164 + 197,415 Securities held outright (1) 2,163,097 + 38,815 + 316,210 U.S. Treasury securities 1,007,237 + 39,684 + 230,661 Bills (2) 18,423 0 0 Notes and bonds, nominal (2) 934,527 + 37,949 + 226,878 Notes and bonds, inflation-indexed (2) 48,125 + 1,619 + 3,482 Inflation compensation (3) 6,162 + 116 + 300 Federal agency debt securities (2) 147,460 - 424 - 12,419 Mortgage-backed securities (4) 1,008,400 - 445 + 97,967 Repurchase agreements (5) 0 0 0 Term auction credit 0 0 - 75,918 Other loans 45,101 - 651 - 42,877 Net portfolio holdings of Commercial Paper Funding Facility LLC (6) 0 0 - 14,055 Net portfolio holdings of Maiden Lane LLC (7) 26,929 + 15 + 344 Net portfolio holdings of Maiden Lane II LLC (8) 16,151 + 7 + 570 Net portfolio holdings of Maiden Lane III LLC (9) 23,129 + 8 + 479 Net portfolio holdings of TALF LLC (10) 665 + 17 + 367 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (11) 26,057 0 + 1,057 Items in process of collection (132) 497 + 230 + 124 Bank premises 2,226 + 3 - 19 Central bank liquidity swaps (12) 75 + 15 - 10,197 Other assets (13) 108,460 + 3,758 + 15,587 Total assets (132) 2,430,772 + 42,222 + 191,769 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 22, 2010 Wednesday Wednesday Assets, liabilities, and capital Dec 15, 2010 Dec 23, 2009 Liabilities Federal Reserve notes, net of F.R. Bank holdings 942,422 + 3,986 + 53,637 Reverse repurchase agreements (14) 51,134 + 318 - 9,591 Deposits (0) 1,335,513 + 38,181 + 115,144 Term deposits held by depository institutions 5,113 0 + 5,113 Other deposits held by depository institutions 1,035,524 + 38,472 - 46,996 U.S. Treasury, general account 89,913 - 1,728 - 29,526 U.S. Treasury, supplementary financing account 199,961 0 + 184,961 Foreign official 4,581 + 1,420 + 2,286 Other (0) 421 + 18 - 694 Deferred availability cash items (132) 2,217 - 94 - 243 Other liabilities and accrued dividends (15) 43,079 + 150 + 28,540 Total liabilities (132) 2,374,365 + 42,542 + 187,487 Capital accounts Capital paid in 26,474 - 358 + 831 Surplus 25,945 + 6 + 4,472 Other capital accounts 3,988 + 31 - 1,020 Total capital 56,407 - 321 + 4,283 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight securities lending facility; 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 22, 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 2,148 50 70 171 161 347 186 334 34 58 155 233 350 Securities, repurchase agreements, term auction credit, and other loans 2,208,198 54,741 927,680 50,515 73,493 246,363 204,707 163,070 55,724 29,626 74,212 90,841 237,226 Securities held outright (1) 2,163,097 54,741 882,658 50,515 73,493 246,353 204,689 163,068 55,718 29,612 74,203 90,829 237,218 U.S. Treasury securities 1,007,237 25,490 411,006 23,522 34,222 114,713 95,312 75,932 25,945 13,789 34,552 42,294 110,460 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) 988,814 25,024 403,488 23,092 33,596 112,615 93,569 74,543 25,470 13,537 33,920 41,521 108,439 Federal agency debt securities (2) 147,460 3,732 60,171 3,444 5,010 16,794 13,954 11,116 3,798 2,019 5,058 6,192 16,171 Mortgage-backed securities (4) 1,008,400 25,519 411,481 23,549 34,261 114,846 95,423 76,020 25,975 13,805 34,592 42,343 110,587 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 45,101 0 45,021 0 0 10 18 2 7 14 9 12 8 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) 26,929 0 26,929 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Maiden Lane II LLC (8) 16,151 0 16,151 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Maiden Lane III LLC (9) 23,129 0 23,129 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of TALF LLC (10) 665 0 665 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 629 8 0 62 316 6 49 37 19 47 33 24 29 Bank premises 2,226 127 256 68 141 240 217 209 136 107 265 246 213 Central bank liquidity swaps (12) 75 3 22 8 6 21 5 2 1 2 1 1 5 Other assets (13) 108,460 3,052 41,435 4,757 4,703 16,523 9,368 6,803 2,377 1,862 3,041 3,830 10,709 Interdistrict settlement account 0 + 2,550 + 203,143 + 17,316 - 24,882 - 31,597 - 47,494 - 40,101 - 17,086 - 7,743 - 16,920 - 3,724 - 33,463 Total assets 2,430,904 61,096 1,271,391 73,511 54,636 233,161 169,077 131,665 41,679 24,254 61,235 92,385 216,813 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 22, 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 1,124,539 41,202 384,338 45,596 46,023 90,219 142,486 86,568 32,411 19,959 33,251 76,192 126,293 Less: Notes held by F.R. Banks 182,116 4,828 65,759 5,037 7,464 13,134 21,294 12,086 4,317 5,822 3,565 11,796 27,014 Federal Reserve notes, net 942,422 36,374 318,579 40,559 38,559 77,085 121,192 74,481 28,094 14,138 29,686 64,396 99,279 Reverse repurchase agreements (14) 51,134 1,294 20,865 1,194 1,737 5,824 4,839 3,855 1,317 700 1,754 2,147 5,608 Deposits 1,335,513 21,256 876,601 25,786 9,741 136,705 39,191 51,307 11,521 7,195 28,964 24,623 102,624 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 1,035,524 21,231 579,961 24,980 9,723 136,180 39,175 51,273 11,465 7,185 28,948 24,607 100,795 U.S. Treasury, general account 89,913 0 89,913 0 0 0 0 0 0 0 0 0 0 U.S. Treasury, supplementary financing account 199,961 0 199,961 0 0 0 0 0 0 0 0 0 0 Foreign official 4,581 1 4,552 4 3 11 2 1 0 1 0 1 3 Other 421 3 235 2 1 100 2 16 51 3 1 0 8 Deferred availability cash items 2,349 77 0 281 445 102 128 165 74 424 124 99 430 Other liabilities and accrued dividends (15) 43,079 201 39,327 257 275 757 506 411 183 147 182 260 575 Total liabilities 2,374,498 59,203 1,255,372 68,077 50,758 220,472 165,855 130,219 41,188 22,603 60,710 91,524 208,516 Capital Capital paid in 26,474 917 7,682 2,566 1,923 5,439 1,519 673 216 819 239 402 4,079 Surplus 25,945 946 7,738 2,804 1,911 7,141 1,581 621 238 712 210 353 1,689 Other capital 3,988 30 599 63 45 109 121 152 36 120 77 106 2,529 Total liabilities and capital 2,430,904 61,096 1,271,391 73,511 54,636 233,161 169,077 131,665 41,679 24,254 61,235 92,385 216,813 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 22, 2010 (continued) 1. Includes securities lent to dealers under the overnight securities lending facility; 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 22, 2010 Federal Reserve notes outstanding 1,124,539 Less: Notes held by F.R. Banks not subject to collateralization 182,116 Federal Reserve notes to be collateralized 942,422 Collateral held against Federal Reserve notes 942,422 Gold certificate account 11,037 Special drawing rights certificate account 5,200 U.S. Treasury, agency debt, and mortgage-backed securities pledged (1,2) 926,186 Other assets pledged 0 Memo: Total U.S. Treasury, agency debt, and mortgage-backed securities (1,2) 2,163,097 Less: Face value of securities under reverse repurchase agreements 45,304 U.S. Treasury, agency debt, and mortgage-backed securities eligible to be pledged 2,117,793 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 securities lending facility; refer to table 1A.