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 Averages of daily figures reserve balances of depository institutions at Week ended Change from week ended Wednesday Federal Reserve Banks Jul 2, 2008 Jun 25, 2008 Jul 4, 2007 Jul 2, 2008 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 Averages of daily figures Memorandum item Week ended Change from week ended Wednesday Jul 2, 2008 Jun 25, 2008 Jul 4, 2007 Jul 2, 2008 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 Wednesday Account name 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 Reverse Remaining maturity Term Other securities (2) Repurchase repurchase auction loans Weekly agreements agreements credit (1) Holdings changes (3) (3) Within 15 days 150,000 3,654 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 Eliminations Change since from Wednesday Wednesday Wednesday Assets, liabilities, and capital consolidation Jul 2, 2008 Jun 25, 2008 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 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 1,317 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 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 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.