H.4.1 Factors Affecting Reserve Balances of Depository Institutions

FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks August 28, 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 Week ended Change from week ended Wednesday at Federal Reserve Banks Aug 27, 2008 Aug 20, 2008 Aug 29, 2007 Aug 27, 2008 Reserve Bank credit 884,355 - 3,286 + 34,261 891,695 Securities held outright 479,604 + 104 - 305,026 479,642 U.S. Treasury1 479,604 + 104 - 305,026 479,642 Bills2 21,740 0 - 250,279 21,740 Notes and bonds, nominal2 411,731 0 - 60,411 411,731 Notes and bonds, inflation-indexed2 39,832 0 + 4,079 39,832 Inflation compensation3 6,301 + 104 + 1,584 6,339 Federal agency2 0 0 0 0 Repurchase agreements4 103,393 - 4,321 + 78,822 111,000 Term auction credit 150,000 0 + 150,000 150,000 Other loans 18,570 + 961 + 16,993 19,002 Primary credit 18,469 + 956 + 17,154 18,901 Secondary credit 0 0 0 0 Seasonal credit 100 + 5 - 162 102 Primary dealer credit facility 0 0 0 0 Other credit extensions 0 0 0 0 Net portfolio holdings of Maiden Lane LLC5 29,213 + 30 + 29,213 29,247 Float -1,213 - 273 - 1,217 -1,688 Other Federal Reserve assets 104,788 + 213 + 65,476 104,491 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 2,200 0 0 2,200 Treasury currency outstanding6 38,789 + 14 + 205 38,789 Total factors supplying reserve funds 936,384 - 3,273 + 34,465 943,725 Currency in circulation6 829,569 - 547 + 19,700 832,790 Reverse repurchase agreements7 42,858 - 1,597 + 11,970 43,768 Foreign official and international accounts 42,858 - 1,597 + 11,970 43,768 Dealers 0 0 0 0 Treasury cash holdings 302 + 5 - 7 281 Deposits with F.R. Banks, other than reserve balances 12,435 + 69 + 146 12,648 U.S. Treasury, general account 4,828 + 63 - 261 4,989 Foreign official 101 - 2 + 6 100 Service-related 7,175 - 5 + 322 7,175 Required clearing balances 7,175 - 1 + 322 7,175 Adjustments to compensate for float 0 - 3 0 0 Other 332 + 14 + 80 385 Other liabilities and capital8 42,501 + 767 + 1,784 42,066 Total factors, other than reserve balances, absorbing reserve funds 927,664 - 1,304 + 33,592 931,553 Reserve balances with Federal Reserve Banks 8,720 - 1,969 + 873 12,172 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Cash value of agreements. 5. Fair value. Refer to table 2 and the note on consolidation accompanying table 5. 6. Estimated. 7. Cash value of agreements, which are collateralized by U.S. Treasury securities. 8. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to table 2 and the note on consolidation accompanying table 5. Sources: Federal Reserve Banks and the U.S. Department of the Treasury.

H.4.1 1A. Memorandum Items, August 27, 2008 Millions of dollars Averages of daily figures Wednesday Memorandum item Week ended Change from week ended Aug 27, 2008 Aug 27, 2008 Aug 20, 2008 Aug 29, 2007 Marketable securities held in custody for foreign official and international accounts1 2,404,896 - 968 + 425,543 2,408,874 U.S. Treasury 1,434,298 + 3,444 + 228,926 1,440,551 Federal agency 970,598 - 4,412 + 196,617 968,323 Securities lent to dealers 121,176 - 3,635 + 115,908 124,141 Overnight facility2 3,828 - 1,995 - 1,440 6,793 Term facility3,4 117,348 - 1,641 + 117,348 117,348 Note: Components may not sum to totals because of rounding. 1. Face value of the securities. Includes U.S. Treasury STRIPS and other zero-coupon bonds at face value. 2. Fully collateralized by U.S. Treasury securities. 3. Fully collateralized by U.S. Treasury securities, federal agency securities, and highly rated non-agency asset-backed and mortgage-backed securities. 4. On August 27, 2008, option contracts on draws on the Term Securities Lending Facility totaling $ 24,998 million were outstanding. The exercise date for the options is September 24, 2008, and the draws have a term of September 25, 2008 through October 2, 2008. 2. Information on Principal Accounts of Maiden Lane LLC Millions of dollars Wednesday Account name Aug 27, 2008 Net portfolio holdings of Maiden Lane LLC1 29,247 Outstanding principal amount of loan extended by the Federal Reserve Bank of New York2 28,820 Accrued interest payable to the Federal Reserve Bank of New York2 112 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co.3 1,163 1. Fair value. Fair value reflects an estimate of the price that would be received upon selling an asset if th e transaction were to be conducted in an orderly market on the measurement date. Revalued quarterly. This table reflects valuations as of June 30, 2008. 2. Book value. This amount was eliminated when preparing the Federal Reserve Bank of New York's statement of condition consistent with consolidation under generally accepted accounting principles. Refer to the note on consolidation accompanying table 5. 3. Book value. The fair value of these obligations is included in other liabilities and capital in table 1 and in other liabilities and accrued dividends in table 4 and table 5. Note: On June 26, 2008, the Federal Reserve Bank of New York (FRBNY) extended credit to Maiden Lane LLC under the authority of section 13(3) of the Federal Reserve Act. This limited liability company was formed to acquire certain assets of Bear Stearns and to manage those assets through time to maximize repayment of the credit extended and to minimize disruption to financial markets. Payments by Maiden Lane LLC from the proceeds of the net portfolio holdings will be made in the following order: operating expenses of the LLC, principal due to the FRBNY, interest due to the FRBNY, principal due to JPMorgan Chase & Co., and interest due to JPMorgan Chase & Co. Any remaining funds will be paid to the FRBNY. 3. Maturity Distribution of Term Auction Credit, Other Loans, and Securities, August 27, 2008 Millions of dollars U.S. Treasury Reverse Term auction Other securities2 Repurchase Remaining maturity repurchase credit loans1 Holdings Weekly agreements3 agreements3 changes Within 15 days 125,000 3,874 18,455 + 2,967 71,000 43,768 16 days to 90 days 25,000 15,128 28,214 - 2,968 40,000 0 91 days to 1 year ... 0 70,320 + 7 ... ... Over 1 year to 5 years ... ... 169,539 + 33 ... ... Over 5 years to 10 years ... ... 91,834 + 22 ... ... Over 10 years ... ... 101,280 + 43 ... ... All 150,000 19,002 479,642 + 104 111,000 43,768 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.

H.4.1 4. Consolidated Statement of Condition of All Federal Reserve Banks Millions of dollars Change since Eliminations from Assets, liabilities, and capital consolidation Wednesday Wednesday Wednesday Aug 27, 2008 Aug 20, 2008 Aug 29, 2007 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 2,200 0 0 Coin 1,415 + 13 + 401 Securities, repurchase agreements, term auction credit, and other loans 759,644 + 10,793 - 60,100 Securities held outright 479,642 + 104 - 304,995 U.S. Treasury1 479,642 + 104 - 304,995 Bills2 21,740 0 - 250,279 Notes and bonds, nominal2 411,731 0 - 60,411 Notes and bonds, inflation-indexed2 39,832 0 + 4,079 Inflation compensation3 6,339 + 104 + 1,616 Federal agency2 0 0 0 Repurchase agreements4 111,000 + 10,250 + 77,250 Term auction credit 150,000 0 + 150,000 Other loans 19,002 + 439 + 17,645 Net portfolio holdings of Maiden Lane LLC5 29,247 + 40 + 29,247 Items in process of collection (561) 926 - 12 - 2,329 Bank premises 2,166 + 3 + 95 Other assets6 102,357 + 463 + 64,907 Total assets (561) 908,991 + 11,299 + 32,220 Liabilities Federal Reserve notes, net of F.R. Bank holdings 795,694 + 1,991 + 20,508 Reverse repurchase agreements7 43,768 + 162 + 12,558 Deposits (0) 24,850 + 8,799 - 2,011 Depository institutions 19,377 + 8,914 - 2,215 U.S. Treasury, general account 4,989 - 188 + 65 Foreign official 100 - 2 + 5 Other (0) 385 + 75 + 135 Deferred availability cash items (561) 2,614 - 18 - 608 Other liabilities and accrued dividends8,9 1,276 + 12 - 4,730 Total liabilities (561) 868,202 + 10,946 + 25,716 Capital accounts Capital paid in 20,189 0 + 3,342 Surplus 18,509 + 2 + 3,086 Other capital accounts 2,091 + 351 + 76 Total capital 40,789 + 353 + 6,504 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 5. Fair value. Refer to table 2 and the note on consolidation accompanying table 5. 6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. 7. Cash value of agreements, which are collateralized by U.S. Treasury securities. 8. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments. 9. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to the note on consolidation accompanying table 5.

H.4.1 5. Statement of Condition of Each Federal Reserve Bank, August 27, 2008 Millions of dollars Kansas San Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Dallas City 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 1,415 37 66 102 125 178 178 165 49 52 99 159 204 Securities, repurchase agreements, term auction credit, and other loans 759,644 28,685 309,282 27,156 31,804 66,907 67,277 55,825 23,153 12,198 28,136 27,739 81,483 Securities held outright 479,642 20,118 170,654 20,942 18,188 43,493 47,724 42,333 16,575 9,055 17,611 19,896 53,054 U.S. Treasury1 479,642 20,118 170,654 20,942 18,188 43,493 47,724 42,333 16,575 9,055 17,611 19,896 53,054 Bills2 21,740 912 7,735 949 824 1,971 2,163 1,919 751 410 798 902 2,405 Notes and bonds3 457,902 19,206 162,919 19,993 17,363 41,522 45,560 40,414 15,823 8,645 16,813 18,994 50,649 Federal agency2 0 0 0 0 0 0 0 0 0 0 0 0 0 Repurchase agreements4 111,000 4,656 39,493 4,846 4,209 10,065 11,044 9,797 3,836 2,096 4,076 4,604 12,278 Term auction credit 150,000 3,900 87,122 1,295 9,400 13,160 8,205 2,765 2,475 31 6,425 2,800 12,422 Other loans 19,002 11 12,013 73 7 189 304 930 268 1,016 23 438 3,729 Net portfolio holdings of Maiden Lane LLC5 29,247 0 29,247 0 0 0 0 0 0 0 0 0 0 Items in process of collection 1,487 55 0 297 437 59 57 149 58 70 114 129 62 Bank premises 2,166 120 212 65 150 210 226 208 127 111 275 253 208 Other assets6 102,357 5,553 27,814 9,339 6,693 25,128 8,057 4,986 1,296 1,949 1,413 2,290 7,838 Interdistrict settlement account 0 + 1,546 -43,276 + 3,947 - 2,029 - 4,676 +23,887 +14,405 + 3,910 + 2,243 - 295 + 3,539 - 3,201 Total assets 909,552 36,535 328,153 41,442 37,707 88,844 101,070 76,863 29,008 16,853 30,158 34,844 88,076 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. 4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 5. Fair value. Refer to the note on consolidation below. 6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. Note on consolidation: On June 26, 2008, the Federal Reserve Bank of New York extended a loan under the authority of section 13(3) of the Federal Reserve Act to Maiden Lane LLC, a limited liability company formed to acquire certain assets of Bear Stearns. The Federal Reserve Bank of New York is the primary beneficiary of Maiden Lane LLC. Consistent with generally accepted accounting principles, the assets and liabilities of Maiden Lane LLC have been consolidated with the assets and liabilities of the Federal Reserve Bank of New York in the preparation of the statements of condition shown on this release. As a consequence of the consolidation, the extension of credit from the Federal Reserve Bank of New York to Maiden Lane LLC is eliminated, the net assets of Maiden Lane LLC appear as an asset in this table (and table 1 and table 4), and the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including those with recourse only to the portfolio holdings of Maiden Lane LLC, are included in other liabilities on the next page (and in table 1 and table 4).

H.4.1 5. Statement of Condition of Each Federal Reserve Bank, August 27, 2008 (continued) Millions of dollars Kansas San Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Dallas City Francisco Liabilities Federal Reserve notes outstanding 991,6 6 8 37,0 8 3 352,1 5 4 40,9 4 7 39,4 9 7 80,8 1 6 121,4 6 0 81,6 6 5 30,2 2 9 17,6 1 4 31,1 4 1 55,2 5 1 103,812 Less: Notes held by F.R. Banks 195,9 7 4 5,2 7 6 57,8 3 5 7,0 1 7 8,3 9 9 13,1 0 7 29,6 0 2 13,7 9 4 3,6 3 4 2,9 1 3 3,8 2 1 24,1 2 8 26,447 Federal Reserve notes, net 795,6 9 4 31,8 0 7 294,3 1 9 33,9 3 0 31,0 9 8 67,7 0 9 91,8 5 8 67,8 7 1 26,5 9 5 14,7 0 0 27,3 2 0 31,1 2 3 77,365 Reverse repurchase agreements1 43,7 6 8 1,8 3 6 15,5 7 2 1,9 1 1 1,6 6 0 3,9 6 9 4,3 5 5 3,8 6 3 1,5 1 2 8 2 6 1,6 0 7 1,8 1 6 4,841 Deposits 24,8 5 0 7 4 2 9,0 1 6 5 4 2 1,0 5 3 6,2 5 2 1,0 6 3 1,9 6 2 3 1 8 2 9 9 4 6 6 8 5 7 2,281 Depository institutions 19,3 7 7 6 4 7 3,7 6 5 5 3 8 1,0 4 9 6,1 5 6 1,0 6 0 1,9 6 0 3 0 6 2 9 8 4 6 4 8 5 6 2,278 U.S. Treasury, general account 4,9 8 9 0 4,9 8 9 0 0 0 0 0 0 0 0 0 0 Foreign official 1 0 0 2 7 0 4 3 1 1 3 2 0 1 0 1 3 Other 3 8 5 9 3 1 9 2 1 1 8 5 0 0 1 1 0 1 0 0 Deferred availability cash items 3,1 7 5 1 3 9 0 4 3 7 8 3 6 2 2 4 1 8 7 2 4 7 5 4 2 3 8 1 9 7 2 2 3 393 Other liabilities and accrued dividends2,3 1,2 7 6 1 4 9 -1,1 7 3 1 7 2 1 7 8 4 3 5 3 6 4 2 9 3 1 4 9 1 0 4 1 2 6 1 7 3 307 Total liabilities 868,7 6 3 34,6 7 3 317,7 3 4 36,9 9 2 34,8 2 5 78,5 8 8 97,8 2 7 74,2 3 6 28,6 2 8 16,1 6 8 29,7 1 5 34,1 9 0 85,187 Capital Capital paid in 20,1 8 9 7 8 7 5,0 8 7 2,3 2 8 1,5 2 1 5,1 8 9 1,5 9 6 1,2 9 0 1 8 2 3 2 0 2 1 0 2 6 7 1,412 Surplus 18,5 0 9 1,0 5 0 4,6 7 2 1,8 1 4 1,2 9 1 4,9 9 9 1,4 2 5 8 1 5 1 8 0 3 5 5 1 9 3 3 6 4 1,351 Other capital 2,0 9 1 2 6 6 6 1 3 0 7 7 0 6 8 2 2 2 5 2 1 1 9 1 0 3 9 2 2 126 Total liabilities and capital 909,5 5 2 36,5 3 5 328,1 5 3 41,4 4 2 37,7 0 7 88,8 4 4 101,0 7 0 76,8 6 3 29,0 0 8 16,8 5 3 30,1 5 8 34,8 4 4 88,076 Note: Components may not sum to totals because of rounding. 1. Cash value of agreements, which are collateralized by U.S. Treasury securities. 2. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments. 3. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to the note on consolidation on the previous page. 6. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts Millions of dollars Wednesday Federal Reserve notes and collateral Aug 27, 2008 Federal Reserve notes outstanding 991,668 Less: Notes held by F.R. Banks not subject to collateralization 195,974 Federal Reserve notes to be collateralized 795,694 Collateral held against Federal Reserve notes 795,694 Gold certificate account 11,037 Special drawing rights certificate account 2,200 U.S. Treasury and agency securities pledged1 547,720 Other assets pledged 234,737 Memo: Total U.S. Treasury and agency securities1 590,642 Less: Face value of securities under reverse repurchase agreements 42,922 U.S. Treasury and agency securities eligible to be pledged 547,720 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.