FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks August 21, 2008 1. Factors Affecting Reserve Balances of Depository Institutions Millions of dollars Reserve Bank credit, related items, and Averages of daily figures reserve balances of depository institutions at Week ended Change from week ended Wednesday Federal Reserve Banks Aug 20, 2008 Aug 13, 2008 Aug 22, 2007 Aug 20, 2008 Reserve Bank credit 887,648 + 4,655 + 36,014 880,392 Securities held outright 479,500 + 104 - 310,113 479,538 U.S. Treasury (1) 479,500 + 104 - 310,113 479,538 Bills (2) 21,740 0 - 255,279 21,740 Notes and bonds, nominal (2) 411,731 0 - 60,411 411,731 Notes and bonds, inflation-indexed (2) 39,832 0 + 4,079 39,832 Inflation compensation (3) 6,197 + 104 + 1,498 6,235 Federal agency (2) 0 0 0 0 Repurchase agreements (4) 107,714 + 1,928 + 85,107 100,750 Term auction credit 150,000 0 + 150,000 150,000 Other loans 17,609 - 198 + 16,068 18,563 Primary credit 17,513 - 186 + 16,313 18,469 Secondary credit 0 - 7 - 85 0 Seasonal credit 95 - 5 - 161 94 Primary dealer credit facility 0 0 0 0 Other credit extensions 0 0 0 0 Net portfolio holdings of Maiden Lane LLC (5) 29,183 + 38 + 29,183 29,207 Float -933 + 193 - 174 -1,694 Other Federal Reserve assets 104,575 + 2,588 + 65,943 104,028 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 2,200 0 0 2,200 Treasury currency outstanding (6) 38,775 + 14 + 202 38,775 Total factors supplying reserve funds 939,664 + 4,669 + 36,216 932,407 Currency in circulation (6) 830,116 - 1,054 + 19,079 830,774 Reverse repurchase agreements (7) 44,455 + 1,997 + 13,104 43,606 Foreign official and international accounts 44,455 + 1,997 + 13,104 43,606 Dealers 0 0 0 0 Treasury cash holdings 297 - 1 + 17 306 Deposits with F.R. Banks, other than reserve balances 12,366 - 144 + 132 12,768 U.S. Treasury, general account 4,765 - 94 - 77 5,177 Foreign official 103 - 216 + 4 102 Service-related 7,180 + 173 + 322 7,180 Required clearing balances 7,176 + 169 + 321 7,176 Adjustments to compensate for float 3 + 3 0 3 Other 318 - 7 - 116 310 Other liabilities and capital (8) 41,734 + 1,157 + 1,291 41,699 Total factors, other than reserve balances, absorbing reserve funds 928,968 + 1,955 + 33,623 929,153 Reserve balances with Federal Reserve Banks 10,696 + 2,714 + 2,593 3,254 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Cash value of agreements. 5. Fair value. Refer to table 2 and the note on consolidation accompanying table 5. 6. Estimated. 7. Cash value of agreements, which are collateralized by U.S. Treasury securities. 8. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to table 2 and the note on consolidation accompanying table 5. Sources: Federal Reserve Banks and the U.S. Department of the Treasury. 1A. Memorandum Items, August 20, 2008 Millions of dollars Averages of daily figures Memorandum item Week ended Change from week ended Wednesday Aug 20, 2008 Aug 13, 2008 Aug 22, 2007 Aug 20, 2008 Marketable securities held in custody for foreign official and international accounts (1) 2,405,864 + 10,981 + 419,453 2,395,304 U.S. Treasury 1,430,854 + 15,026 + 212,024 1,423,017 Federal agency 975,010 - 4,044 + 207,428 972,287 Securities lent to dealers 124,811 - 6,343 + 119,730 126,022 Overnight facility (2) 5,823 + 2,986 + 742 8,676 Term facility (3) 118,989 - 9,329 + 118,989 117,346 Note: Components may not sum to totals because of rounding. 1. Face value of the securities. Includes U.S. Treasury STRIPS and other zero-coupon bonds at face value. 2. Fully collateralized by U.S. Treasury securities. 3. Fully collateralized by U.S. Treasury securities, federal agency securities, and highly rated non-agency asset-backed and mortgage-backed securities. Sources: Federal Reserve Banks and the U.S. Department of the Treasury. 2. Information on Principal Accounts of Maiden Lane LLC Millions of dollars Wednesday Account name Aug 20, 2008 Net portfolio holdings of Maiden Lane LLC (1) 29,207 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) 99 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3) 1,162 1. Fair value. Fair value reflects an estimate of the price that would be received upon selling an asset if the transaction were to be conducted in an orderly market on the measurement date. Revalued quarterly. This table reflects valuations as of June 30, 2008. 2. Book value. This amount was eliminated when preparing the Federal Reserve Bank of New York's statement of condition consistent with consolidation under generally accepted accounting principles. Refer to the note on consolidation accompanying table 5. 3. Book value. The fair value of these obligations is included in other liabilities and capital in table 1 and in other liabilities and accrued dividends in table 4 and table 5. Note: On June 26, 2008, the Federal Reserve Bank of New York (FRBNY) extended credit to Maiden Lane LLC under the authority of section 13(3) of the Federal Reserve Act. This limited liability company was formed to acquire certain assets of Bear Stearns and to manage those assets through time to maximize repayment of the credit extended and to minimize disruption to financial markets. Payments by Maiden Lane LLC from the proceeds of the net portfolio holdings will be made in the following order: operating expenses of the LLC, principal due to the FRBNY, interest due to the FRBNY, principal due to JPMorgan Chase & Co., and interest due to JPMorgan Chase & Co. Any remaining funds will be paid to the FRBNY. 3. Maturity Distribution of Term Auction Credit, Other Loans, and Securities, August 20, 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 75,000 3,821 15,488 - 5,713 60,750 43,606 16 days to 90 days 75,000 14,742 31,182 + 5,423 40,000 0 91 days to 1 year --- 0 70,313 + 809 --- --- Over 1 year to 5 years --- --- 169,506 - 6,090 --- --- Over 5 years to 10 years --- --- 91,812 + 1,905 --- --- Over 10 years --- --- 101,237 + 3,770 --- --- All 150,000 18,563 479,538 + 104 100,750 43,606 Note: Components may not sum to totals because of rounding. --- Not applicable. 1. Excludes the loan from the Federal Reserve Bank of New York to Maiden Lane LLC that was eliminated when preparing that Bank's statement of condition consistent with consolidation under generally accepted accounting principles. The loan to Maiden Lane LLC is designed to be repaid from the orderly liquidation of Maiden Lane LLC's portfolio holdings and does not have a fixed amortization schedule. 2. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. 3. Cash value of agreements. 4. Consolidated Statement of Condition of All Federal Reserve Banks Millions of dollars Eliminations Change since from Wednesday Wednesday Wednesday Assets, liabilities, and capital consolidation Aug 20, 2008 Aug 13, 2008 Aug 22, 2007 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 2,200 0 0 Coin 1,402 + 24 + 385 Securities, repurchase agreements, term auction credit, and other loans 748,851 - 16,484 - 62,030 Securities held outright 479,538 + 104 - 310,081 U.S. Treasury (1) 479,538 + 104 - 310,081 Bills (2) 21,740 0 - 255,279 Notes and bonds, nominal (2) 411,731 0 - 60,411 Notes and bonds, inflation-indexed (2) 39,832 0 + 4,079 Inflation compensation (3) 6,235 + 104 + 1,529 Federal agency (2) 0 0 0 Repurchase agreements (4) 100,750 - 17,500 + 81,750 Term auction credit 150,000 0 + 150,000 Other loans 18,563 + 912 + 16,301 Net portfolio holdings of Maiden Lane LLC (5) 29,207 + 28 + 29,207 Items in process of collection (509) 938 - 662 - 1,717 Bank premises 2,163 + 1 + 95 Other assets (6) 101,894 + 2,459 + 64,999 Total assets (509) 897,692 - 14,634 + 30,939 Liabilities Federal Reserve notes, net of F.R. Bank holdings 793,703 - 1,398 + 19,163 Reverse repurchase agreements (7) 43,606 - 566 + 13,650 Deposits (0) 16,051 - 14,429 - 2,718 Depository institutions 10,463 - 14,882 - 2,619 U.S. Treasury, general account 5,177 + 462 - 152 Foreign official 102 + 1 + 7 Other (0) 310 - 9 + 47 Deferred availability cash items (509) 2,632 + 40 - 556 Other liabilities and accrued dividends (8,9) 1,264 + 1,400 - 4,766 Total liabilities (509) 857,256 - 14,953 + 24,773 Capital accounts Capital paid in 20,189 + 254 + 3,348 Surplus 18,507 + 2 + 3,095 Other capital accounts 1,740 + 62 - 276 Total capital 40,436 + 319 + 6,166 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 5. Fair value. Refer to table 2 and the note on consolidation accompanying table 5. 6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. 7. Cash value of agreements, which are collateralized by U.S. Treasury securities. 8. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments. 9. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to the note on consolidation accompanying table 5. 5. Statement of Condition of Each Federal Reserve Bank, August 20, 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 1,402 36 65 100 122 173 175 167 52 51 99 159 202 Securities, repurchase agreements, term auction credit, and other loans 748,851 28,250 305,717 26,703 31,942 65,944 66,257 54,906 22,811 11,996 27,760 27,257 79,308 Securities held outright 479,538 20,114 170,617 20,937 18,184 43,484 47,713 42,324 16,571 9,053 17,608 19,892 53,042 U.S. Treasury (1) 479,538 20,114 170,617 20,937 18,184 43,484 47,713 42,324 16,571 9,053 17,608 19,892 53,042 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) 457,798 19,202 162,882 19,988 17,359 41,512 45,550 40,405 15,820 8,643 16,809 18,990 50,637 Federal agency (2) 0 0 0 0 0 0 0 0 0 0 0 0 0 Repurchase agreements (4) 100,750 4,226 35,846 4,399 3,820 9,136 10,024 8,892 3,482 1,902 3,699 4,179 11,144 Term auction credit 150,000 3,900 87,122 1,295 9,400 13,160 8,205 2,765 2,475 31 6,425 2,800 12,422 Other loans 18,563 11 12,132 72 538 164 314 925 284 1,010 28 386 2,700 Net portfolio holdings of Maiden Lane LLC (5) 29,207 0 29,207 0 0 0 0 0 0 0 0 0 0 Items in process of collection 1,447 54 0 212 232 85 206 138 14 97 135 113 160 Bank premises 2,163 121 212 65 150 210 226 207 127 111 275 253 207 Other assets (6) 101,894 5,535 27,629 9,322 6,672 25,106 8,002 4,950 1,281 1,941 1,395 2,274 7,787 Interdistrict settlement account 0 + 1,361 -41,856 + 3,905 - 2,953 - 8,968 +23,198 +14,746 + 4,596 + 2,571 + 424 + 3,874 - 898 Total assets 898,201 35,897 325,783 40,843 36,692 83,587 99,452 76,240 29,296 16,996 30,504 34,663 88,249 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. 4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 5. Fair value. Refer to the note on consolidation below. 6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. Note on consolidation: On June 26, 2008, the Federal Reserve Bank of New York extended a loan under the authority of section 13(3) of the Federal Reserve Act to Maiden Lane LLC, a limited liability company formed to acquire certain assets of Bear Stearns. The Federal Reserve Bank of New York is the primary beneficiary of Maiden Lane LLC. Consistent with generally accepted accounting principles, the assets and liabilities of Maiden Lane LLC have been consolidated with the assets and liabilities of the Federal Reserve Bank of New York in the preparation of the statements of condition shown on this release. As a consequence of the consolidation, the extension of credit from the Federal Reserve Bank of New York to Maiden Lane LLC is eliminated, the net assets of Maiden Lane LLC appear as an asset in this table (and table 1 and table 4), and the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including those with recourse only to the portfolio holdings of Maiden Lane LLC, are included in other liabilities on the next page (and in table 1 and table 4). 5. Statement of Condition of Each Federal Reserve Bank, August 20, 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 992,338 36,925 351,938 40,778 39,184 80,938 120,696 82,362 30,555 17,814 31,545 55,337 104,266 Less: Notes held by F.R. Banks 198,635 5,382 58,179 7,199 8,357 13,448 30,472 14,042 3,745 2,962 3,954 24,386 26,509 Federal Reserve notes, net 793,703 31,543 293,759 33,579 30,827 67,490 90,224 68,320 26,809 14,852 27,591 30,950 77,757 Reverse repurchase agreements (1) 43,606 1,829 15,515 1,904 1,654 3,954 4,339 3,849 1,507 823 1,601 1,809 4,823 Deposits 16,051 374 7,330 302 566 1,279 1,094 909 405 298 547 825 2,124 Depository institutions 10,463 362 1,883 297 562 1,180 1,091 907 394 297 545 824 2,121 U.S. Treasury, general account 5,177 0 5,177 0 0 0 0 0 0 0 0 0 0 Foreign official 102 2 72 4 3 11 3 2 0 1 0 1 3 Other 310 10 198 0 1 88 0 0 11 0 1 0 0 Deferred availability cash items 3,142 159 0 464 615 246 255 266 44 239 205 260 387 Other liabilities and accrued dividends (2,3) 1,264 151 -1,147 169 174 414 352 293 151 104 126 172 304 Total liabilities 857,766 34,057 315,457 36,418 33,836 73,382 96,265 73,636 28,917 16,317 30,069 34,016 85,396 Capital Capital paid in 20,189 787 5,087 2,328 1,521 5,189 1,595 1,290 182 320 210 267 1,412 Surplus 18,507 1,050 4,670 1,814 1,291 4,999 1,425 815 180 355 193 364 1,351 Other capital 1,740 3 569 283 43 16 167 498 18 4 31 16 91 Total liabilities and capital 898,201 35,897 325,783 40,843 36,692 83,587 99,452 76,240 29,296 16,996 30,504 34,663 88,249 Note: Components may not sum to totals because of rounding. 1. Cash value of agreements, which are collateralized by U.S. Treasury securities. 2. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments. 3. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to the note on consolidation on the previous page. 6. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts Millions of dollars Federal Reserve notes and collateral Wednesday Aug 20, 2008 Federal Reserve notes outstanding 992,338 Less: Notes held by F.R. Banks not subject to collateralization 198,635 Federal Reserve notes to be collateralized 793,703 Collateral held against Federal Reserve notes 793,703 Gold certificate account 11,037 Special drawing rights certificate account 2,200 U.S. Treasury and agency securities pledged (1) 537,703 Other assets pledged 242,762 Memo: Total U.S. Treasury and agency securities (1) 580,288 Less: Face value of securities under reverse repurchase agreements 42,585 U.S. Treasury and agency securities eligible to be pledged 537,703 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.