FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks October 16, 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 Oct 15, 2008 Oct 8, 2008 Oct 17, 2007 Oct 15, 2008 Reserve Bank credit 1,740,078 + 245,360 + 882,065 1,753,599 Securities held outright 490,657 - 285 - 288,940 490,660 U.S. Treasury (1) 476,552 - 42 - 303,045 476,555 Bills (2) 18,423 0 - 248,596 18,423 Notes and bonds, nominal (2) 411,592 - 139 - 60,550 410,757 Notes and bonds, inflation-indexed (2) 39,971 + 139 + 4,218 40,806 Inflation compensation (3) 6,567 - 42 + 1,883 6,569 Federal agency (2) 14,105 - 242 + 14,105 14,105 Repurchase agreements (4) 80,000 - 1,143 + 41,500 80,000 Term auction credit 263,092 + 114,092 + 263,092 263,092 Other loans 437,530 + 17,370 + 437,290 441,370 Primary credit 99,659 + 24,649 + 99,533 101,853 Secondary credit 4 0 + 4 0 Seasonal credit 25 - 14 - 89 24 Primary dealer and other broker-dealer credit(5) 131,125 - 2,941 + 131,125 133,871 Asset-backed commercial paper money market mutual fund liquidity facility 129,616 - 16,274 + 129,616 122,763 Other credit extensions 77,101 + 11,950 + 77,101 82,860 Net portfolio holdings of Maiden Lane LLC (6) 29,492 + 40 + 29,492 29,526 Float -1,014 + 36 + 458 13 Other Federal Reserve assets 440,320 + 115,249 + 399,172 448,937 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 2,200 0 0 2,200 Treasury currency outstanding (7) 38,759 + 14 + 92 38,759 Total factors supplying reserve funds 1,792,079 + 245,374 + 882,158 1,805,600 Currency in circulation (7) 853,228 + 8,738 + 38,731 855,439 Reverse repurchase agreements (8) 85,890 - 8,453 + 51,486 107,819 Foreign official and international accounts 78,747 + 2,261 + 44,343 82,819 Dealers 7,143 - 10,714 + 7,143 25,000 Treasury cash holdings 276 + 14 - 59 278 Deposits with F.R. Banks, other than reserve balances 525,046 + 82,895 + 512,932 529,969 U.S. Treasury, general account 7,338 - 572 + 2,258 23,983 U.S. Treasury, supplementary financing account 494,853 + 89,082 + 494,853 499,129 Foreign official 308 + 193 + 211 190 Service-related 6,138 - 1,579 - 441 6,138 Required clearing balances 6,138 - 1,579 - 441 6,138 Adjustments to compensate for float 0 0 0 0 Other 16,410 - 4,227 + 16,053 529 Other liabilities and capital (9) 46,567 + 850 + 4,975 46,358 Total factors, other than reserve balances, absorbing reserve funds 1,511,008 + 84,045 + 608,067 1,539,863 Reserve balances with Federal Reserve Banks 281,070 + 161,328 + 274,090 265,737 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. Includes credit extended through the Primary Dealer Credit Facility and credit extended to certain other broker-dealers. 6. Fair value. Refer to table 2 and the note on consolidation accompanying table 5. 7. Estimated. 8. Cash value of agreements, which are collateralized by U.S. Treasury securities. 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 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, October 15, 2008 Millions of dollars Averages of daily figures Memorandum item Week ended Change from week ended Wednesday Oct 15, 2008 Oct 8, 2008 Oct 17, 2007 Oct 15, 2008 Marketable securities held in custody for foreign official and international accounts (1) 2,486,288 + 1,143 + 468,054 2,480,651 U.S. Treasury 1,550,991 + 23,173 + 320,760 1,554,489 Federal agency 935,298 - 22,029 + 147,295 926,162 Securities lent to dealers 220,398 + 9,053 + 214,524 218,735 Overnight facility (2) 25,852 + 5,850 + 19,978 23,739 Term facility (3) 194,546 + 3,203 + 194,546 194,996 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 other highly rated debt securities. 2. Information on Principal Accounts of Maiden Lane LLC Millions of dollars Wednesday Account name Oct 15, 2008 Net portfolio holdings of Maiden Lane LLC (1) 29,526 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) 195 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3) 1,174 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, October 15, 2008 Millions of dollars U.S. Treasury Federal agency Reverse Remaining maturity Term Other securities (2) securities Repurchase repurchase auction loans Weekly Weekly agreements agreements credit (1) Holdings changes Holdings changes (3) (3) Within 15 days 75,000 232,441 12,138 - 3,477 485 + 485 40,000 107,819 16 days to 90 days 188,092 123,084 29,373 + 2,504 9,393 - 235 40,000 0 91 days to 1 year --- 16,029 65,879 + 607 4,227 - 250 --- --- Over 1 year to 5 years --- 69,816 173,462 - 623 0 0 --- --- Over 5 years to 10 years --- --- 94,336 + 983 0 0 --- --- Over 10 years --- --- 101,367 - 17 0 0 --- --- All 263,092 441,370 476,555 - 24 14,105 0 80,000 107,819 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 Oct 15, 2008 Oct 8, 2008 Oct 17, 2007 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 2,200 0 0 Coin 1,546 + 24 + 367 Securities, repurchase agreements, term auction credit, and other loans 1,275,122 + 104,572 + 459,173 Securities held outright 490,660 - 24 - 288,931 U.S. Treasury (1) 476,555 - 24 - 303,036 Bills (2) 18,423 0 - 248,596 Notes and bonds, nominal (2) 410,757 - 974 - 61,385 Notes and bonds, inflation-indexed (2) 40,806 + 974 + 5,053 Inflation compensation (3) 6,569 - 24 + 1,892 Federal agency (2) 14,105 0 + 14,105 Repurchase agreements (4) 80,000 - 20,000 + 43,750 Term auction credit 263,092 + 114,092 + 263,092 Other loans 441,370 + 10,504 + 441,262 Net portfolio holdings of Maiden Lane LLC (5) 29,526 + 39 + 29,526 Items in process of collection (824) 4,058 + 2,867 + 2,681 Bank premises 2,170 0 + 65 Other assets (6) 446,772 + 71,829 + 407,494 Total assets (824) 1,772,431 + 179,332 + 899,307 Liabilities Federal Reserve notes, net of F.R. Bank holdings 818,498 + 6,806 + 40,812 Reverse repurchase agreements (7) 107,819 + 30,470 + 72,732 Deposits (0) 795,712 + 140,486 + 779,919 Depository institutions 271,881 + 88,567 + 261,605 U.S. Treasury, general account 23,983 + 18,439 + 18,878 U.S. Treasury, supplementary financing account 499,129 + 39,883 + 499,129 Foreign official 190 + 89 + 93 Other (0) 529 - 6,492 + 214 Deferred availability cash items (824) 4,044 + 1,308 + 851 Other liabilities and accrued dividends (8,9) 4,501 + 392 - 1,424 Total liabilities (824) 1,730,574 + 179,462 + 892,890 Capital accounts Capital paid in 20,316 + 4 + 2,580 Surplus 18,525 + 2 + 3,087 Other capital accounts 3,016 - 137 + 750 Total capital 41,858 - 130 + 6,418 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 and any exchange-translation assets, which are revalued daily at market exchange rates. 7. Cash value of agreements, which are collateralized by U.S. Treasury securities. 8. Includes any exchange-translation liabilities, which are revalued daily at market exchange rates. 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, October 15, 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 1,546 46 76 123 128 202 203 180 49 54 107 165 212 Securities, repurchase agreements, term auction credit, and other loans 1,275,122 158,735 624,423 31,865 34,527 120,786 68,459 56,740 21,943 16,320 21,962 27,297 92,065 Securities held outright 490,660 20,580 174,574 21,423 18,606 44,492 48,820 43,305 16,955 9,263 18,016 20,353 54,272 U.S. Treasury (1) 476,555 19,989 169,555 20,807 18,071 43,213 47,416 42,060 16,468 8,997 17,498 19,768 52,712 Bills (2) 18,423 773 6,555 804 699 1,671 1,833 1,626 637 348 676 764 2,038 Notes and bonds (3) 458,132 19,216 163,001 20,003 17,372 41,543 45,583 40,434 15,831 8,649 16,822 19,004 50,674 Federal agency (2) 14,105 592 5,018 616 535 1,279 1,403 1,245 487 266 518 585 1,560 Repurchase agreements (4) 80,000 3,356 28,464 3,493 3,034 7,254 7,960 7,061 2,765 1,510 2,937 3,318 8,849 Term auction credit 263,092 12,000 145,030 500 12,785 43,347 11,440 4,480 2,000 5,035 475 3,000 23,000 Other loans 441,370 122,799 276,356 6,449 102 25,692 240 1,894 223 512 534 626 5,944 Net portfolio holdings of Maiden Lane LLC (5) 29,526 0 29,526 0 0 0 0 0 0 0 0 0 0 Items in process of collection 4,882 195 0 687 610 251 658 1,280 65 225 100 400 410 Bank premises 2,170 123 210 64 150 215 226 207 128 111 275 251 209 Other assets (6) 446,772 24,915 118,872 42,378 30,301 116,463 34,108 20,043 4,643 8,444 4,998 8,980 32,626 Interdistrict settlement account 0 -108,078 +259,986 - 27,331 - 21,206 -105,742 + 5,634 + 6,919 + 5,810 - 5,968 + 7,911 + 1,710 - 19,644 Total assets 1,773,255 76,475 1037903 48,322 45,037 133,212 110,675 86,494 33,054 19,415 35,768 39,538 107,362 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 and any exchange-translation assets, 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, October 15, 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 991,169 38,072 351,700 41,792 40,518 82,080 119,937 80,660 29,938 17,549 30,787 54,828 103,308 Less: Notes held by F.R. Banks 172,671 5,193 46,081 6,255 7,869 11,441 27,209 13,072 3,321 2,676 3,312 22,522 23,718 Federal Reserve notes, net 818,498 32,879 305,619 35,537 32,648 70,639 92,728 67,588 26,616 14,873 27,474 32,307 79,590 Reverse repurchase agreements (1) 107,819 4,522 38,361 4,708 4,088 9,777 10,728 9,516 3,726 2,035 3,959 4,472 11,926 Deposits 795,712 36,811 681,185 2,315 4,269 41,405 3,150 6,110 2,110 1,316 3,560 1,558 11,924 Depository institutions 271,881 36,803 157,529 2,311 4,265 41,263 3,147 6,108 2,104 1,316 3,559 1,557 11,921 U.S. Treasury, general account 23,983 0 23,983 0 0 0 0 0 0 0 0 0 0 U.S. Treasury, supplementary financing account 499,129 0 499,129 0 0 0 0 0 0 0 0 0 0 Foreign official 190 2 160 4 3 11 3 2 0 1 0 1 3 Other 529 6 383 0 1 132 0 0 6 0 1 0 0 Deferred availability cash items 4,867 186 0 940 791 428 444 317 67 399 217 370 708 Other liabilities and accrued dividends (2,3) 4,501 157 1,881 199 192 477 371 313 156 107 130 186 331 Total liabilities 1,731,397 74,555 1027046 43,699 41,989 122,726 107,422 83,844 32,676 18,730 35,340 38,893 104,478 Capital Capital paid in 20,316 784 5,162 2,331 1,524 5,210 1,607 1,306 181 321 207 268 1,414 Surplus 18,525 1,050 4,687 1,814 1,291 4,999 1,426 815 180 355 193 364 1,351 Other capital 3,016 86 1,008 477 233 276 221 529 17 9 28 13 119 Total liabilities and capital 1,773,255 76,475 1037903 48,322 45,037 133,212 110,675 86,494 33,054 19,415 35,768 39,538 107,362 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 any exchange-translation liabilities, which are revalued daily at market exchange rates. 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 Oct 15, 2008 Federal Reserve notes outstanding 991,169 Less: Notes held by F.R. Banks not subject to collateralization 172,671 Federal Reserve notes to be collateralized 818,498 Collateral held against Federal Reserve notes 818,498 Gold certificate account 11,037 Special drawing rights certificate account 2,200 U.S. Treasury and agency securities pledged (1) 470,257 Other assets pledged 335,005 Memo: Total U.S. Treasury and agency securities (1) 570,660 Less: Face value of securities under reverse repurchase agreements 100,403 U.S. Treasury and agency securities eligible to be pledged 470,257 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.