For release at 4:30 P.M. EST January 6, 2011 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 reflect an accounting policy change that will result in a more transparent presentation of each Federal Reserve Bank's capital accounts and distribution of residual earnings to the U.S. Treasury. Although the accounting policy change does not affect the amount of residual earnings that the Federal Reserve Banks distribute to the U.S. Treasury, it may affect the timing of the distributions. Consistent with long- standing policy of the Board of Governors, the residual earnings of each Federal Reserve Bank, after providing for the costs of operations, payment of dividends, and the amount necessary to equate surplus with capital paid-in, are distributed weekly to the U.S. Treasury. The distribution of residual earnings to the U.S. Treasury is made in accordance with the Board of Governor's authority to levy an interest charge on the Federal Reserve Banks based on the amount of each Federal Reserve Bank's outstanding Federal Reserve notes. Effective January 1, 2011, as a result of the accounting policy change, on a daily basis each Federal Reserve Bank will adjust the balance in its surplus account to equate surplus with capital paid-in and, in addition, will adjust its liability for the distribution of residual earnings to the U.S. Treasury. Previously these adjustments were made only at year-end. Adjusting the surplus account balance and the liability for the distribution of residual earnings to the U.S. Treasury is consistent with the existing requirement for daily accrual of many other items that appear in the Board's H.4.1 statistical release. The liability for the distribution of residual earnings to the U.S. Treasury will be reported as "Interest on Federal Reserve notes due to U.S. Treasury" on table 10. Previously, the amount necessary to equate surplus with capital paid-in and the amount of the liability for the distribution of residual earnings to the U.S. Treasury were included in "Other capital accounts" in table 9 and in "Other capital" in table 10. FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks January 6, 2011 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 Jan 5, 2011 Federal Reserve Banks Jan 5, 2011 Dec 29, 2010 Jan 6, 2010 Reserve Bank credit 2,410,816 + 3,081 + 194,474 2,418,014 Securities held outright (1) 2,163,563 + 4,386 + 318,610 2,170,586 U.S. Treasury securities 1,023,962 + 13,677 + 247,371 1,030,985 Bills (2) 18,423 0 0 18,423 Notes and bonds, nominal (2) 950,990 + 13,424 + 243,341 956,554 Notes and bonds, inflation-indexed (2) 48,356 + 231 + 3,713 49,743 Inflation compensation (3) 6,194 + 22 + 317 6,265 Federal agency debt securities (2) 147,460 0 - 12,419 147,460 Mortgage-backed securities (4) 992,141 - 9,291 + 83,658 992,141 Repurchase agreements (5) 0 0 0 0 Term auction credit 0 0 - 75,918 0 Other loans 44,707 - 405 - 45,420 44,615 Primary credit 100 + 48 - 19,353 10 Secondary credit 0 - 15 - 954 0 Seasonal credit 16 - 8 - 5 10 Credit extended to American International Group, Inc., net (6) 19,919 - 359 - 2,247 19,961 Term Asset-Backed Securities Loan Facility (7) 24,673 - 70 - 22,859 24,634 Other credit extensions 0 0 0 0 Net portfolio holdings of Commercial Paper Funding Facility LLC (8) 0 0 - 14,067 0 Net portfolio holdings of Maiden Lane LLC (9) 26,974 + 39 + 268 27,009 Net portfolio holdings of Maiden Lane II LLC (10) 16,125 - 32 + 465 15,942 Net portfolio holdings of Maiden Lane III LLC (11) 23,152 + 21 + 478 23,202 Net portfolio holdings of TALF LLC (12) 665 0 + 367 665 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (13) 26,338 + 281 + 1,232 26,385 Float -1,696 - 284 + 586 -2,205 Central bank liquidity swaps (14) 75 0 - 10,197 75 Other Federal Reserve assets (15) 110,913 - 925 + 18,069 111,739 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 5,200 0 0 5,200 Treasury currency outstanding (16) 43,581 + 14 + 890 43,581 Total factors supplying reserve funds 2,470,638 + 3,094 + 195,364 2,477,836 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 Jan 5, 2011 Federal Reserve Banks Jan 5, 2011 Dec 29, 2010 Jan 6, 2010 Currency in circulation (16) 982,756 - 944 + 55,492 981,520 Reverse repurchase agreements (17) 59,416 + 3,653 - 15,685 57,555 Foreign official and international accounts 59,416 + 3,653 - 15,685 57,555 Others 0 0 0 0 Treasury cash holdings 177 - 7 - 64 180 Deposits with F.R. Banks, other than reserve balances 327,207 + 26,973 + 112,098 311,870 Term deposits held by depository institutions 0 - 5,113 0 0 U.S. Treasury, general account 115,386 + 27,914 - 62,957 105,713 U.S. Treasury, supplementary financing account 199,964 + 1 + 194,963 199,964 Foreign official 3,378 - 771 + 766 3,430 Service-related 2,378 + 19 - 642 2,378 Required clearing balances 2,378 + 19 - 642 2,378 Adjustments to compensate for float 0 0 0 0 Other 6,102 + 4,923 - 20,032 385 Funds from American International Group, Inc. asset dispositions, held as agent (18) 26,896 0 + 26,896 26,896 Other liabilities and capital (19) 72,430 - 1,027 + 8,962 69,070 Total factors, other than reserve balances, absorbing reserve funds 1,468,882 + 28,647 + 187,698 1,447,091 Reserve balances with Federal Reserve Banks 1,001,756 - 25,553 + 7,665 1,030,745 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. Also includes the liability for interest on Federal Reserve notes due to U.S. Treasury. Refer to table 9 and 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 Jan 5, 2011 Memorandum item Jan 5, 2011 Dec 29, 2010 Jan 6, 2010 Marketable securities held in custody for foreign official and international accounts (1) 3,344,257 - 6,068 + 382,614 3,354,852 U.S. Treasury securities 2,610,287 - 6,100 + 415,043 2,620,512 Federal agency securities (2) 733,969 + 31 - 32,430 734,340 Securities lent to dealers 19,459 + 8,829 + 1,865 13,613 Overnight facility (3) 19,459 + 8,829 + 1,865 13,613 U.S. Treasury securities 17,988 + 8,607 + 1,362 12,306 Federal agency debt securities 1,471 + 222 + 503 1,307 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, January 5, 2011 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) 10 10 0 44,595 0 ... 44,615 U.S. Treasury securities (2) Holdings 13,584 21,035 54,254 439,596 342,546 159,970 1,030,985 Weekly changes - 6,019 + 5,991 - 1,726 + 5,693 + 10,046 + 900 + 14,883 Federal agency debt securities (3) Holdings 1,575 13,390 28,501 71,050 30,597 2,347 147,460 Weekly changes + 446 - 446 0 0 0 0 0 Mortgage-backed securities (4) Holdings 0 0 0 24 22 992,095 992,141 Weekly changes 0 0 0 0 + 2 - 2 0 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) 57,555 0 ... ... ... ... 57,555 Term deposits 0 0 0 ... ... ... 0 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 Jan 5, 2011 Mortgage-backed securities held outright (1) 992,141 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 Jan 5, 2011 Net portfolio holdings of Maiden Lane LLC (1) 27,009 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) 620 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3) 1,316 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 Jan 5, 2011 Net portfolio holdings of Maiden Lane II LLC (1) 15,942 Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2) 12,777 Accrued interest payable to the Federal Reserve Bank of New York (2) 454 Deferred payment and accrued interest payable to subsidiaries of American International Group, Inc. (3) 1,072 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 Jan 5, 2011 Net portfolio holdings of Maiden Lane III LLC (1) 23,202 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) 548 Outstanding principal amount and accrued interest on loan payable to American International Group, Inc. (3) 5,368 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 Jan 5, 2011 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 Jan 5, 2011 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (1) 26,385 Accrued dividends on preferred interests in AIA Aurora LLC and ALICO Holdings LLC (2) 18 Preferred interests in AIA Aurora LLC (1) 16,887 Accrued dividends on preferred interests in AIA Aurora LLC (2) 12 Preferred interests in ALICO Holdings LLC (1) 9,499 Accrued dividends on preferred interests in ALICO Holdings LLC (2) 7 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 Jan 5, 2011 Wednesday Wednesday Assets, liabilities, and capital Dec 29, 2010 Jan 6, 2010 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 5,200 0 0 Coin 2,191 + 27 + 127 Securities, repurchase agreements, term auction credit, and other loans 2,215,201 + 14,414 + 204,252 Securities held outright (1) 2,170,586 + 14,883 + 325,375 U.S. Treasury securities 1,030,985 + 14,883 + 254,390 Bills (2) 18,423 0 0 Notes and bonds, nominal (2) 956,554 + 13,177 + 248,905 Notes and bonds, inflation-indexed (2) 49,743 + 1,618 + 5,100 Inflation compensation (3) 6,265 + 87 + 384 Federal agency debt securities (2) 147,460 0 - 12,419 Mortgage-backed securities (4) 992,141 0 + 83,404 Repurchase agreements (5) 0 0 0 Term auction credit 0 0 - 75,918 Other loans 44,615 - 469 - 45,206 Net portfolio holdings of Commercial Paper Funding Facility LLC (6) 0 0 - 14,076 Net portfolio holdings of Maiden Lane LLC (7) 27,009 + 35 + 273 Net portfolio holdings of Maiden Lane II LLC (8) 15,942 - 255 + 280 Net portfolio holdings of Maiden Lane III LLC (9) 23,202 + 60 + 445 Net portfolio holdings of TALF LLC (10) 665 0 + 367 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (11) 26,385 + 328 + 1,279 Items in process of collection (98) 280 + 55 - 442 Bank premises 2,219 - 10 - 21 Central bank liquidity swaps (12) 75 0 - 10,197 Other assets (13) 109,566 + 859 + 18,186 Total assets (98) 2,438,972 + 15,515 + 200,473 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 Jan 5, 2011 Wednesday Wednesday Assets, liabilities, and capital Dec 29, 2010 Jan 6, 2010 Liabilities Federal Reserve notes, net of F.R. Bank holdings 940,305 - 3,444 + 55,856 Reverse repurchase agreements (14) 57,555 - 1,691 - 10,017 Deposits (0) 1,342,661 + 23,906 + 123,997 Term deposits held by depository institutions 0 - 5,113 0 Other deposits held by depository institutions 1,033,169 + 12,443 + 8,671 U.S. Treasury, general account 105,713 + 16,808 - 60,842 U.S. Treasury, supplementary financing account 199,964 + 1 + 194,963 Foreign official 3,430 - 240 + 281 Other (0) 385 + 7 - 19,076 Deferred availability cash items (98) 2,484 + 634 - 1,249 Other liabilities and accrued dividends (15) 42,918 - 338 + 30,985 Total liabilities (98) 2,385,924 + 19,069 + 199,573 Capital accounts Capital paid in 26,524 - 1 + 873 Surplus 26,524 + 573 + 1,358 Other capital accounts 0 - 4,126 - 1,330 Total capital 53,048 - 3,554 + 900 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. Also includes the liability for interest on Federal Reserve notes due to U.S. Treasury. Refer to table 10. 10. Statement of Condition of Each Federal Reserve Bank, January 5, 2011 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 2,191 46 70 175 165 355 188 340 36 60 161 240 356 Securities, repurchase agreements, term auction credit, and other loans 2,215,201 54,930 930,308 50,689 73,747 247,206 205,404 163,634 55,911 29,715 74,471 91,144 238,040 Securities held outright (1) 2,170,586 54,930 885,714 50,689 73,747 247,206 205,397 163,633 55,910 29,715 74,460 91,144 238,040 U.S. Treasury securities 1,030,985 26,091 420,696 24,076 35,028 117,418 97,560 77,722 26,556 14,114 35,367 43,292 113,064 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) 1,012,562 25,625 413,179 23,646 34,403 115,320 95,816 76,333 26,082 13,862 34,735 42,518 111,044 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) 992,141 25,108 404,846 23,169 33,709 112,994 93,884 74,794 25,556 13,582 34,034 41,660 108,804 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 44,615 0 44,595 0 0 0 7 1 1 0 11 0 0 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) 27,009 0 27,009 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Maiden Lane II LLC (8) 15,942 0 15,942 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Maiden Lane III LLC (9) 23,202 0 23,202 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) 26,385 0 26,385 0 0 0 0 0 0 0 0 0 0 Items in process of collection 377 7 0 47 73 15 99 65 -34 31 26 26 22 Bank premises 2,219 126 255 68 140 239 218 208 136 107 265 245 213 Central bank liquidity swaps (12) 75 3 22 8 6 21 5 2 1 2 1 1 5 Other assets (13) 109,566 3,087 41,596 4,771 4,759 16,712 9,518 6,911 2,420 1,886 3,091 3,969 10,847 Interdistrict settlement account 0 - 3,354 + 205,476 + 12,929 - 18,973 - 22,076 - 47,731 - 35,160 - 17,054 - 7,567 - 13,898 - 5,267 - 47,325 Total assets 2,439,070 55,411 1,276,788 69,300 60,616 243,731 169,739 137,309 41,890 24,526 64,566 91,291 203,902 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, January 5, 2011 (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 1,120,748 41,109 383,269 45,475 45,934 90,094 141,227 86,382 32,428 19,927 33,190 75,842 125,872 Less: Notes held by F.R. Banks 180,443 4,727 64,067 4,770 7,859 13,082 20,778 12,148 4,435 5,768 3,652 11,946 27,211 Federal Reserve notes, net 940,305 36,382 319,203 40,705 38,075 77,012 120,449 74,233 27,993 14,159 29,538 63,895 98,661 Reverse repurchase agreements (14) 57,555 1,457 23,486 1,344 1,955 6,555 5,446 4,339 1,483 788 1,974 2,417 6,312 Deposits 1,342,661 15,465 879,283 21,667 15,928 148,585 40,131 56,727 11,708 7,416 32,213 23,794 89,743 Term deposits held by depository institutions 0 0 0 0 0 0 0 0 0 0 0 0 0 Other deposits held by depository institutions 1,033,169 15,457 569,982 21,662 15,924 148,533 40,127 56,700 11,652 7,412 32,209 23,794 89,717 U.S. Treasury, general account 105,713 0 105,713 0 0 0 0 0 0 0 0 0 0 U.S. Treasury, supplementary financing account 199,964 0 199,964 0 0 0 0 0 0 0 0 0 0 Foreign official 3,430 1 3,401 4 3 11 2 1 0 1 0 1 3 Other 385 7 222 0 2 41 1 27 56 3 4 0 23 Deferred availability cash items 2,582 92 0 303 505 115 134 208 78 407 142 113 486 Interest on Federal Reserve notes due to U.S. Treasury (15) 613 7 379 -36 -4 -31 69 65 22 -1 13 51 80 Other liabilities and accrued dividends (16) 42,305 176 39,074 180 222 618 470 393 176 119 171 247 460 Total liabilities 2,386,021 53,579 1,261,423 64,162 56,681 232,853 166,699 135,965 41,460 22,887 64,052 90,518 195,742 Capital Capital paid in 26,524 916 7,682 2,569 1,968 5,439 1,520 672 215 819 257 387 4,080 Surplus 26,524 916 7,682 2,569 1,968 5,439 1,520 672 215 819 257 387 4,080 Other capital 0 0 0 0 0 0 0 0 0 0 0 0 0 Total liabilities and capital 2,439,070 55,411 1,276,788 69,300 60,616 243,731 169,739 137,309 41,890 24,526 64,566 91,291 203,902 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, January 5, 2011 (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. Represents the estimated weekly remittances to U.S Treasury as interest on Federal Reserve notes or, in those cases where the Reserve Bank's net earnings are not sufficient to equate surplus to capital paid-in, the deferred asset for interest on Federal Reserve notes. The amount of any deferred asset, which is presented as a negative amount in this line, represents the amount of the Federal Reserve Bank's earnings that must be retained before remittances to the U.S. Treasury resume. The amounts on this line are calculated in accordance with Board of Governors policy, which requires the Federal Reserve Banks to remit residual earnings to the U.S. Treasury as interest on Federal Reserve notes after providing for the costs of operations, payment of dividends, and the amount necessary to equate surplus with capital paid-in. 16. 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 Jan 5, 2011 Federal Reserve notes outstanding 1,120,748 Less: Notes held by F.R. Banks not subject to collateralization 180,443 Federal Reserve notes to be collateralized 940,305 Collateral held against Federal Reserve notes 940,305 Gold certificate account 11,037 Special drawing rights certificate account 5,200 U.S. Treasury, agency debt, and mortgage-backed securities pledged (1,2) 924,068 Other assets pledged 0 Memo: Total U.S. Treasury, agency debt, and mortgage-backed securities (1,2) 2,170,586 Less: Face value of securities under reverse repurchase agreements 51,371 U.S. Treasury, agency debt, and mortgage-backed securities eligible to be pledged 2,119,215 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.