FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks May 27, 2010 1. Factors Affecting Reserve Balances of Depository Institutions Millions of dollars Reserve Bank credit, related items, and Averages of daily figures Wednesday reserve balances of depository institutions at Week ended Change from week ended May 26, 2010 Federal Reserve Banks May 26, 2010 May 19, 2010 May 27, 2009 Reserve Bank credit 2,323,752 - 15,319 + 248,076 2,316,843 Securities held outright (1) 2,062,171 - 3,358 + 953,937 2,057,164 U.S. Treasury securities 776,862 + 43 + 179,283 776,877 Bills (2) 18,423 0 0 18,423 Notes and bonds, nominal (2) 712,023 0 + 179,058 712,023 Notes and bonds, inflation-indexed (2) 41,125 0 - 350 41,125 Inflation compensation (3) 5,290 + 43 + 574 5,306 Federal agency debt securities (2) 167,377 - 370 + 87,624 167,377 Mortgage-backed securities (4) 1,117,932 - 3,031 + 687,030 1,112,910 Repurchase agreements (5) 0 0 0 0 Term auction credit 0 0 - 372,541 0 Other loans 75,219 - 1,013 - 49,013 74,937 Primary credit 4,315 - 799 - 33,838 4,209 Secondary credit 400 0 + 371 400 Seasonal credit 48 + 4 + 33 43 Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility 0 0 - 26,423 0 Credit extended to American International Group, Inc., net (6) 26,133 - 43 - 18,024 26,110 Term Asset-Backed Securities Loan Facility (7) 44,322 - 175 + 28,868 44,175 Other credit extensions 0 0 0 0 Net portfolio holdings of Commercial Paper Funding Facility LLC (8) 2 0 - 154,692 2 Net portfolio holdings of Maiden Lane LLC (9) 28,311 + 42 + 2,623 28,329 Net portfolio holdings of Maiden Lane II LLC (10) 15,856 + 14 - 319 15,910 Net portfolio holdings of Maiden Lane III LLC (11) 23,373 + 10 + 3,006 23,380 Net portfolio holdings of TALF LLC (12) 472 + 33 + 472 478 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (13) 25,416 0 + 25,416 25,416 Float -1,712 + 182 + 263 -1,819 Central bank liquidity swaps (14) 1,242 - 7,963 - 183,690 1,242 Other Federal Reserve assets (15) 93,403 - 3,266 + 22,615 91,805 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 5,200 0 + 3,000 5,200 Treasury currency outstanding (16) 42,857 + 14 + 527 42,857 Total factors supplying reserve funds 2,382,850 - 15,305 + 251,603 2,375,941 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 May 26, 2010 Federal Reserve Banks May 26, 2010 May 19, 2010 May 27, 2009 Currency in circulation (16) 937,689 + 115 + 29,029 940,424 Reverse repurchase agreements (17) 58,080 + 1,754 - 11,948 58,158 Foreign official and international accounts 58,080 + 1,754 - 11,948 58,158 Dealers 0 0 0 0 Treasury cash holdings 196 + 9 - 102 205 Deposits with F.R. Banks, other than reserve balances 230,481 - 8,034 - 3,084 221,040 U.S. Treasury, general account 26,077 + 4,918 - 615 16,728 U.S. Treasury, supplementary financing account 199,957 - 2 + 25 199,957 Foreign official 1,442 - 162 - 938 1,349 Service-related 2,643 - 20 - 1,582 2,643 Required clearing balances 2,643 - 20 - 1,582 2,643 Adjustments to compensate for float 0 0 0 0 Other 361 - 12,769 + 25 362 Other liabilities and capital (18) 71,701 - 1,654 + 20,535 70,675 Total factors, other than reserve balances, absorbing reserve funds 1,298,146 - 7,810 + 34,429 1,290,501 Reserve balances with Federal Reserve Banks 1,084,704 - 7,495 + 217,174 1,085,440 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. 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. Refer to table 7 and the note on consolidation accompanying table 11. 9. Refer to table 4 and the note on consolidation accompanying table 11. 10. Refer to table 5 and the note on consolidation accompanying table 11. 11. Refer to table 6 and the note on consolidation accompanying table 11. 12. Refer to table 8 and the note on consolidation accompanying table 11. 13. Refer to table 9. 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 and federal agency debt securities. 18. Includes the liabilities of Commercial Paper Funding Facility LLC, 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 8 and the note on consolidation accompanying table 11. 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 May 26, 2010 Memorandum item May 26, 2010 May 19, 2010 May 27, 2009 Marketable securities held in custody for foreign official and international accounts (1) 3,066,268 + 9,634 + 342,045 3,077,379 U.S. Treasury securities 2,264,514 + 3,029 + 354,577 2,270,933 Federal agency securities (2) 801,754 + 6,605 - 12,532 806,446 Securities lent to dealers 3,415 - 669 - 28,055 3,400 Overnight facility (3) 3,415 - 669 + 38 3,400 U.S. Treasury securities 2,106 - 730 - 1,271 1,881 Federal agency debt securities 1,310 + 61 + 1,310 1,519 Term facility (4) 0 0 - 28,093 0 Note: Components may not sum to totals because of rounding. 1. Face value of the securities. Includes U.S. Treasury STRIPS, other zero-coupon bonds, and mortgage-backed securities at face value. 2. Includes debt and mortgage-backed securities. 3. Fully collateralized by U.S. Treasury securities. 4. U.S. Treasury securities only. Fully collateralized by U.S. Treasury securities, federal agency securities, and other highly rated debt securities. 2. Maturity Distribution of Securities, Loans, and Selected Other Assets and Liabilities, May 26, 2010 Millions of dollars Within 15 16 days to 91 days to Over 1 year Over 5 years Over 10 All Remaining maturity days 90 days 1 year to 5 years to 10 years years Other loans (1) 4,650 3 0 70,285 0 ... 74,937 U.S. Treasury securities (2) Holdings 14,593 17,775 46,919 340,387 213,494 143,710 776,877 Weekly changes - 2,504 + 2,504 + 4 + 9 + 11 + 19 + 43 Federal agency debt securities (3) Holdings 662 10,213 37,409 83,198 33,548 2,347 167,377 Weekly changes - 200 + 709 + 74 - 783 0 0 - 200 Mortgage-backed securities (4) Holdings 0 0 0 32 20 1,112,858 1,112,910 Weekly changes 0 0 0 0 0 - 6,575 - 6,575 Commercial paper held by Commercial Paper Funding Facility LLC (5) 0 0 0 ... ... ... 0 Asset-backed securities held by TALF LLC (6) 0 0 0 0 0 0 0 Repurchase agreements (7) 0 0 ... ... ... ... 0 Central bank liquidity swaps (8) 0 1,242 0 0 0 0 1,242 Reverse repurchase agreements (7) 58,158 0 ... ... ... ... 58,158 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 Commercial Paper Funding Facility LLC, 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 commercial paper held by Commercial Paper Funding Facility LLC. 6. Face value of asset-backed securities held by TALF LLC, which is the remaining principal balance of the underlying assets. 7. Cash value of agreements. 8. 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 May 26, 2010 Mortgage-backed securities held outright (1) 1,112,910 Commitments to buy mortgage-backed securities (2) 36,354 Commitments to sell mortgage-backed securities (2) 0 Cash and cash equivalents (3) 541 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 as well as dollar rolls. 3. This amount is included in other Federal Reserve assets in table 1 and in other assets in table 10 and table 11. 4. Information on Principal Accounts of Maiden Lane LLC Millions of dollars Wednesday Account name May 26, 2010 Net portfolio holdings of Maiden Lane LLC (1) 28,329 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) 491 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3) 1,274 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 March 31, 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 11. 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 10 and table 11. 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 May 26, 2010 Net portfolio holdings of Maiden Lane II LLC (1) 15,910 Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2) 14,532 Accrued interest payable to the Federal Reserve Bank of New York (2) 342 Deferred payment and accrued interest payable to subsidiaries of American International Group, Inc. (3) 1,050 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 March 31, 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 11. 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 10 and table 11. 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 May 26, 2010 Net portfolio holdings of Maiden Lane III LLC (1) 23,380 Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2) 16,206 Accrued interest payable to the Federal Reserve Bank of New York (2) 427 Outstanding principal amount and accrued interest on loan payable to American International Group, Inc. (3) 5,261 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 March 31, 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 11. 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 10 and table 11. 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 Commercial Paper Funding Facility LLC Millions of dollars Wednesday Account name May 26, 2010 Commercial paper holdings, net (1) 0 Other investments, net 2 Net portfolio holdings of Commercial Paper Funding Facility LLC 2 Memorandum: Commercial paper holdings, face value 0 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 1. Book value, which includes amortized cost and related fees. 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 11. Note: On October 27, 2008, the Federal Reserve Bank of New York began extending loans under the authority of section 13(3) of the Federal Reserve Act to Commercial Paper Funding Facility LLC. This LLC is a limited liability company formed to purchase three-month U.S. dollar-denominated commercial paper from eligible issuers and thereby foster liquidity in short-term funding markets and increase the availability of credit for businesses and households. 8. Information on Principal Accounts of TALF LLC Millions of dollars Wednesday Account name May 26, 2010 Asset-backed securities holdings (1) 0 Other investments, net 478 Net portfolio holdings of TALF LLC 478 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) 104 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 11. 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 10 and table 11. 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 $20 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. 9. 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 May 26, 2010 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (1) 25,416 Accrued dividends on preferred interests in AIA Aurora LLC and ALICO Holdings LLC (2) 195 Preferred interests in AIA Aurora LLC (1) 16,266 Accrued dividends on preferred interests in AIA Aurora LLC (2) 125 Preferred interests in ALICO Holdings LLC (1) 9,150 Accrued dividends on preferred interests in ALICO Holdings LLC (2) 70 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 10 and table 11. 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. 10. Consolidated Statement of Condition of All Federal Reserve Banks Millions of dollars Eliminations from Wednesday Change since consolidation May 26, 2010 Wednesday Wednesday Assets, liabilities, and capital May 19, 2010 May 27, 2009 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 5,200 0 + 3,000 Coin 2,014 - 28 + 224 Securities, repurchase agreements, term auction credit, and other loans 2,132,101 - 7,657 + 528,542 Securities held outright (1) 2,057,164 - 6,732 + 949,717 U.S. Treasury securities 776,877 + 43 + 176,735 Bills (2) 18,423 0 0 Notes and bonds, nominal (2) 712,023 0 + 178,001 Notes and bonds, inflation-indexed (2) 41,125 0 - 1,678 Inflation compensation (3) 5,306 + 43 + 412 Federal agency debt securities (2) 167,377 - 200 + 87,624 Mortgage-backed securities (4) 1,112,910 - 6,575 + 685,358 Repurchase agreements (5) 0 0 0 Term auction credit 0 0 - 372,540 Other loans 74,937 - 924 - 48,635 Net portfolio holdings of Commercial Paper Funding Facility LLC (6) 2 0 - 149,387 Net portfolio holdings of Maiden Lane LLC (7) 28,329 + 21 + 2,612 Net portfolio holdings of Maiden Lane II LLC (8) 15,910 + 63 - 342 Net portfolio holdings of Maiden Lane III LLC (9) 23,380 + 8 + 3,001 Net portfolio holdings of TALF LLC (10) 478 + 39 + 478 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (11) 25,416 0 + 25,416 Items in process of collection (40) 274 + 45 - 985 Bank premises 2,236 - 2 + 38 Central bank liquidity swaps (12) 1,242 - 7,963 - 180,405 Other assets (13) 89,889 - 1,382 + 23,656 Total assets (40) 2,337,507 - 16,857 + 255,848 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table. 10. Consolidated Statement of Condition of All Federal Reserve Banks (continued) Millions of dollars Eliminations from Wednesday Change since consolidation May 26, 2010 Wednesday Wednesday Assets, liabilities, and capital May 19, 2010 May 27, 2009 Liabilities Federal Reserve notes, net of F.R. Bank holdings 899,782 + 2,214 + 29,765 Reverse repurchase agreements (14) 58,158 + 2,394 - 7,721 Deposits (0) 1,306,800 - 20,911 + 216,362 Depository institutions 1,088,403 - 7,336 + 211,392 U.S. Treasury, general account 16,728 - 13,485 + 5,680 U.S. Treasury, supplementary financing account 199,957 - 2 + 25 Foreign official 1,349 - 129 - 783 Other (0) 362 + 40 + 47 Deferred availability cash items (40) 2,092 - 267 - 2,028 Other liabilities and accrued dividends (15) 15,627 - 314 + 9,344 Total liabilities (40) 2,282,459 - 16,883 + 245,722 Capital accounts Capital paid in 26,416 - 7 + 2,389 Surplus 25,668 + 32 + 6,494 Other capital accounts 2,963 - 1 + 1,242 Total capital 55,048 + 26 + 10,126 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. 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. Refer to table 7 and the note on consolidation accompanying table 11. 7. Refer to table 4 and the note on consolidation accompanying table 11. 8. Refer to table 5 and the note on consolidation accompanying table 11. 9. Refer to table 6 and the note on consolidation accompanying table 11. 10. Refer to table 8 and the note on consolidation accompanying table 11. 11. Refer to table 9. 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 and federal agency debt securities. 15. Includes the liabilities of Commercial Paper Funding Facility LLC, 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 8 and the note on consolidation accompanying table 11. 11. Statement of Condition of Each Federal Reserve Bank, May 26, 2010 Millions of dollars Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas Dallas San Assets, liabilities, and capital City Francisco Assets Gold certificate account 11,037 369 4,038 404 463 846 1,385 887 324 203 296 652 1,170 Special drawing rights certificate acct. 5,200 196 1,818 210 237 412 654 424 150 90 153 282 574 Coin 2,014 69 76 162 146 295 184 316 27 64 144 197 334 Securities, repurchase agreements, term auction credit, and other loans 2,132,101 52,063 914,156 48,049 69,894 234,289 194,691 155,102 52,995 28,180 70,574 86,383 225,725 Securities held outright (1) 2,057,164 52,060 839,432 48,041 69,894 234,289 194,665 155,082 52,989 28,162 70,569 86,381 225,601 U.S. Treasury securities 776,877 19,660 317,007 18,142 26,395 88,478 73,514 58,566 20,011 10,635 26,650 32,621 85,197 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) 758,455 19,194 309,490 17,712 25,769 86,380 71,771 57,177 19,536 10,383 26,018 31,848 83,177 Federal agency debt securities (2) 167,377 4,236 68,299 3,909 5,687 19,062 15,838 12,618 4,311 2,291 5,742 7,028 18,356 Mortgage-backed securities (4) 1,112,910 28,164 454,126 25,990 37,812 126,748 105,312 83,898 28,667 15,235 38,177 46,732 122,048 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 74,937 3 74,725 8 0 1 27 20 6 17 5 2 123 Net portfolio holdings of Commercial Paper Funding Facility LLC (6) 2 0 2 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Maiden Lane LLC (7) 28,329 0 28,329 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Maiden Lane II LLC (8) 15,910 0 15,910 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Maiden Lane III LLC (9) 23,380 0 23,380 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of TALF LLC (10) 478 0 478 0 0 0 0 0 0 0 0 0 0 Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (11) 25,416 0 25,416 0 0 0 0 0 0 0 0 0 0 Items in process of collection 313 13 0 17 111 5 68 11 6 21 8 31 22 Bank premises 2,236 122 260 70 143 237 220 210 136 109 266 250 213 Central bank liquidity swaps (12) 1,242 46 360 136 93 346 77 30 12 34 10 17 82 Other assets (13) 89,889 2,559 34,161 4,136 3,998 14,072 7,662 5,482 1,942 1,584 2,452 3,098 8,743 Interdistrict settlement account 0 - 8,591 + 78,333 + 19,927 - 14,877 + 72,560 - 46,583 - 40,984 - 16,406 + 18,045 - 22,463 - 13,905 - 25,057 Total assets 2,337,546 46,845 1,126,716 73,111 60,207 323,063 158,358 121,479 39,186 48,330 51,440 77,006 211,805 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table. 11. Statement of Condition of Each Federal Reserve Bank, May 26, 2010 (continued) Millions of dollars Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas Dallas San Assets, liabilities, and capital City Francisco Liabilities Federal Reserve notes outstanding 1,081,819 34,980 396,103 38,636 44,449 84,078 137,204 86,343 31,995 19,966 29,279 65,264 113,523 Less: Notes held by F.R. Banks 182,037 4,115 59,971 5,566 9,446 13,198 29,599 11,868 4,516 3,065 3,239 12,187 25,268 Federal Reserve notes, net 899,782 30,865 336,132 33,070 35,003 70,880 107,605 74,475 27,478 16,901 26,040 53,077 88,255 Reverse repurchase agreements (14) 58,158 1,472 23,731 1,358 1,976 6,624 5,503 4,384 1,498 796 1,995 2,442 6,378 Deposits 1,306,800 12,321 740,050 32,560 18,516 231,829 41,231 40,636 9,438 28,514 22,630 20,182 108,892 Depository institutions 1,088,403 12,302 521,834 32,556 18,512 231,734 41,228 40,591 9,436 28,513 22,628 20,182 108,887 U.S. Treasury, general account 16,728 0 16,728 0 0 0 0 0 0 0 0 0 0 U.S. Treasury, supplementary financing account 199,957 0 199,957 0 0 0 0 0 0 0 0 0 0 Foreign official 1,349 1 1,320 4 3 11 2 1 0 1 0 1 3 Other 362 17 210 0 2 84 0 44 1 0 1 0 3 Deferred availability cash items 2,132 61 0 188 538 74 124 142 49 388 81 111 376 Other liabilities and accrued dividends (15) 15,627 232 11,079 286 314 931 646 508 212 162 229 313 715 Total liabilities 2,282,498 44,951 1,110,992 67,463 56,347 310,337 155,110 120,145 38,676 46,762 50,974 76,125 204,616 Capital Capital paid in 26,416 916 7,543 2,947 1,907 5,451 1,548 614 239 803 211 414 3,823 Surplus 25,668 945 7,568 2,701 1,910 7,140 1,581 620 240 712 210 353 1,688 Other capital 2,963 33 612 0 44 134 119 100 31 52 45 114 1,679 Total liabilities and capital 2,337,546 46,845 1,126,716 73,111 60,207 323,063 158,358 121,479 39,186 48,330 51,440 77,006 211,805 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table. 11. Statement of Condition of Each Federal Reserve Bank, May 26, 2010 (continued) 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. 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. Refer to table 7 and the note on consolidation below. 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 8 and the note on consolidation below. 11. Refer to table 9. 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 and federal agency debt securities. 15. Includes the liabilities of Commercial Paper Funding Facility LLC, 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 8 and the note on consolidation below. 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 October 27, 2008, the FRBNY began extending loans to Commercial Paper Funding Facility LLC, which was formed to purchase three-month U.S. dollar-denominated commercial paper from eligible issuers. 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 sole beneficiary of Commercial Paper Funding Facility LLC. 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 10), 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 10). 12. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts Millions of dollars Wednesday Federal Reserve notes and collateral May 26, 2010 Federal Reserve notes outstanding 1,081,819 Less: Notes held by F.R. Banks not subject to collateralization 182,037 Federal Reserve notes to be collateralized 899,782 Collateral held against Federal Reserve notes 899,782 Gold certificate account 11,037 Special drawing rights certificate account 5,200 U.S. Treasury, agency debt, and mortgage-backed securities pledged (1,2) 883,545 Other assets pledged 0 Memo: Total U.S. Treasury, agency debt, and mortgage-backed securities (1,2) 2,057,164 Less: Face value of securities under reverse repurchase agreements 57,389 U.S. Treasury, agency debt, and mortgage-backed securities eligible to be pledged 1,999,775 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 and term securities lending facilities; refer to table 1A.