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 September 4, 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 Sep 3, 2008 Aug 27, 2008 Sep 5, 2007 Sep 3, 2008 Reserve Bank credit 893,846 + 9,492 + 37,175 887,263 Securities held outright 479,701 + 97 - 299,940 479,726 U.S. Treasury1 479,701 + 97 - 299,940 479,726 Bills2 21,740 0 - 245,279 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 6,398 + 97 + 1,670 6,423 Federal agency2 0 0 0 0 Repurchase agreements4 115,893 + 12,500 + 78,893 109,000 Term auction credit 150,000 0 + 150,000 150,000 Other loans 19,070 + 500 + 17,729 19,089 Primary credit 18,976 + 507 + 17,873 19,000 Secondary credit 0 0 0 0 Seasonal credit 93 - 7 - 145 90 Primary dealer credit facility 0 0 0 0 Other credit extensions 0 0 0 0 Net portfolio holdings of Maiden Lane LLC5 29,253 + 40 + 29,253 29,287 Float -1,474 - 261 - 1,104 -363 Other Federal Reserve assets 101,404 - 3,384 + 62,346 100,524 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 2,200 0 0 2,200 Treasury currency outstanding6 38,803 + 14 + 208 38,803 Total factors supplying reserve funds 945,890 + 9,506 + 37,384 939,307 Currency in circulation6 835,319 + 5,750 + 20,394 836,836 Reverse repurchase agreements7 42,880 + 22 + 7,949 41,756 Foreign official and international accounts 42,880 + 22 + 7,949 41,756 Dealers 0 0 0 0 Treasury cash holdings 281 - 21 - 50 276 Deposits with F.R. Banks, other than reserve balances 12,240 - 195 + 545 13,110 U.S. Treasury, general account 4,746 - 82 + 61 5,606 Foreign official 100 - 1 + 5 100 Service-related 7,087 - 88 + 475 7,087 Required clearing balances 7,087 - 88 + 475 7,087 Adjustments to compensate for float 0 0 0 0 Other 307 - 25 + 4 317 Other liabilities and capital8 44,277 + 1,776 + 3,667 43,498 Total factors, other than reserve balances, absorbing reserve funds 934,997 + 7,333 + 32,506 935,476 Reserve balances with Federal Reserve Banks 10,893 + 2,173 + 4,878 3,831 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, September 3, 2008 Millions of dollars Averages of daily figures Wednesday Memorandum item Week ended Change from week ended Sep 3, 2008 Sep 3, 2008 Aug 27, 2008 Sep 5, 2007 Marketable securities held in custody for foreign official and international accounts1 2,403,824 - 1,072 + 423,629 2,395,399 U.S. Treasury 1,437,964 + 3,666 + 230,785 1,436,830 Federal agency 965,860 - 4,738 + 192,844 958,569 Securities lent to dealers 126,097 + 4,921 + 120,211 120,790 Overnight facility2 9,992 + 6,164 + 4,106 4,892 Term facility3,4 116,105 - 1,243 + 116,105 115,898 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 September 3, 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 Sep 3, 2008 Net portfolio holdings of Maiden Lane LLC1 29,287 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 124 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co.3 1,165 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, September 3, 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 50,000 4,238 14,851 - 3,604 69,000 41,756 16 days to 90 days 100,000 14,851 31,653 + 3,439 40,000 0 91 days to 1 year ... 0 69,268 - 1,052 ... ... Over 1 year to 5 years ... ... 170,789 + 1,250 ... ... Over 5 years to 10 years ... ... 91,851 + 17 ... ... Over 10 years ... ... 101,314 + 34 ... ... All 150,000 19,089 479,726 + 84 109,000 41,756 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 Sep 3, 2008 Aug 27, 2008 Sep 5, 2007 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 2,200 0 0 Coin 1,414 - 1 + 397 Securities, repurchase agreements, term auction credit, and other loans 757,815 - 1,829 - 58,164 Securities held outright 479,726 + 84 - 299,914 U.S. Treasury1 479,726 + 84 - 299,914 Bills2 21,740 0 - 245,279 Notes and bonds, nominal2 411,731 0 - 60,411 Notes and bonds, inflation-indexed2 39,832 0 + 4,079 Inflation compensation3 6,423 + 84 + 1,696 Federal agency2 0 0 0 Repurchase agreements4 109,000 - 2,000 + 74,000 Term auction credit 150,000 0 + 150,000 Other loans 19,089 + 87 + 17,751 Net portfolio holdings of Maiden Lane LLC5 29,287 + 40 + 29,287 Items in process of collection (743) 3,366 + 2,440 - 2,130 Bank premises 2,162 - 4 + 83 Other assets6 98,381 - 3,976 + 61,137 Total assets (743) 905,661 - 3,330 + 30,609 Liabilities Federal Reserve notes, net of F.R. Bank holdings 799,719 + 4,025 + 21,058 Reverse repurchase agreements7 41,756 - 2,012 + 6,658 Deposits (0) 16,959 - 7,891 + 847 Depository institutions 10,936 - 8,441 - 350 U.S. Treasury, general account 5,606 + 617 + 1,117 Foreign official 100 0 + 3 Other (0) 317 - 68 + 76 Deferred availability cash items (743) 3,729 + 1,115 - 1,041 Other liabilities and accrued dividends8,9 2,695 + 1,419 - 3,371 Total liabilities (743) 864,859 - 3,343 + 24,152 Capital accounts Capital paid in 20,191 + 2 + 3,217 Surplus 18,511 + 2 + 3,087 Other capital accounts 2,100 + 9 + 153 Total capital 40,803 + 14 + 6,458 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, September 3, 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 1,414 37 69 103 122 179 180 166 49 51 97 159 201 Securities, repurchase agreements, term auction credit, and other loans 757,815 31,204 304,878 28,357 31,724 66,554 66,333 55,932 22,760 11,918 28,880 26,899 82,375 Securities held outright 479,726 20,122 170,684 20,946 18,191 43,501 47,732 42,340 16,578 9,057 17,614 19,900 53,063 U.S. Treasury1 479,726 20,122 170,684 20,946 18,191 43,501 47,732 42,340 16,578 9,057 17,614 19,900 53,063 Bills2 21,740 912 7,735 949 824 1,971 2,163 1,919 751 410 798 902 2,405 Notes and bonds3 457,986 19,210 162,949 19,996 17,367 41,529 45,569 40,422 15,826 8,646 16,816 18,998 50,658 Federal agency2 0 0 0 0 0 0 0 0 0 0 0 0 0 Repurchase agreements4 109,000 4,572 38,782 4,759 4,133 9,884 10,845 9,620 3,767 2,058 4,002 4,521 12,057 Term auction credit 150,000 6,500 83,383 2,582 9,400 12,945 7,510 2,985 2,075 35 7,250 2,000 13,335 Other loans 19,089 11 12,030 71 0 224 246 986 341 768 13 478 3,921 Net portfolio holdings of Maiden Lane LLC5 29,287 0 29,287 0 0 0 0 0 0 0 0 0 0 Items in process of collection 4,109 261 96 571 600 166 533 429 116 238 218 296 585 Bank premises 2,162 122 212 64 149 210 226 207 127 111 275 252 208 Other assets6 98,381 5,335 26,800 8,887 6,419 24,114 7,765 4,812 1,263 1,873 1,371 2,207 7,535 Interdistrict settlement account 0 - 935 -38,083 + 3,656 - 2,033 - 7,725 +25,015 +13,153 + 4,546 + 2,616 - 1,027 + 4,731 - 3,913 Total assets 906,404 36,563 328,069 42,175 37,508 84,535 101,439 75,824 29,276 17,035 30,230 35,278 88,473 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, September 3, 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 990,7 1 1 37,0 3 7 351,1 1 9 41,0 9 5 39,4 5 2 81,0 8 7 121,3 8 8 81,6 1 5 30,2 9 2 17,6 7 4 31,1 1 1 55,1 8 7 103,654 Less: Notes held by F.R. Banks 190,9 9 2 5,1 7 8 56,2 9 7 6,7 1 3 8,1 1 2 12,7 1 9 29,3 4 5 13,4 7 4 3,3 8 8 2,8 5 0 3,6 5 3 23,5 2 9 25,733 Federal Reserve notes, net 799,7 1 9 31,8 6 0 294,8 2 2 34,3 8 2 31,3 4 0 68,3 6 8 92,0 4 3 68,1 4 2 26,9 0 4 14,8 2 3 27,4 5 8 31,6 5 8 77,920 Reverse repurchase agreements1 41,7 5 6 1,7 5 1 14,8 5 6 1,8 2 3 1,5 8 3 3,7 8 6 4,1 5 5 3,6 8 5 1,4 4 3 7 8 8 1,5 3 3 1,7 3 2 4,619 Deposits 16,9 5 9 7 2 2 7,7 3 4 6 1 4 8 3 0 1,3 0 9 1,2 5 2 7 1 7 3 1 9 2 8 8 3 9 6 6 9 6 2,081 Depository institutions 10,9 3 6 7 1 3 1,8 7 0 6 1 0 8 2 7 1,1 8 9 1,2 4 9 7 1 5 3 0 8 2 8 7 3 9 5 6 9 5 2,078 U.S. Treasury, general account 5,6 0 6 0 5,6 0 6 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 1 7 7 1 8 8 0 0 1 1 0 0 0 1 1 0 1 0 0 Deferred availability cash items 4,4 7 2 2 2 5 0 7 2 1 6 8 4 3 4 8 3 7 7 3 6 5 7 6 3 5 3 2 7 8 3 7 0 673 Other liabilities and accrued dividends2,3 2,6 9 5 1 5 2 2 5 8 1 7 4 1 7 7 4 3 4 3 6 0 2 9 0 1 5 3 1 0 0 1 2 1 1 7 1 305 Total liabilities 865,6 0 2 34,7 1 1 317,6 7 2 37,7 1 4 34,6 1 4 74,2 4 5 98,1 8 6 73,1 9 9 28,8 9 6 16,3 5 3 29,7 8 6 34,6 2 7 85,598 Capital Capital paid in 20,1 9 1 7 8 7 5,0 8 7 2,3 2 8 1,5 2 2 5,1 9 0 1,5 9 6 1,2 9 0 1 8 2 3 2 0 2 1 0 2 6 7 1,413 Surplus 18,5 1 1 1,0 5 0 4,6 7 4 1,8 1 4 1,2 9 1 4,9 9 9 1,4 2 6 8 1 5 1 8 0 3 5 5 1 9 3 3 6 4 1,351 Other capital 2,1 0 0 1 6 6 3 6 3 1 8 8 1 1 0 1 2 3 2 5 1 9 1 9 8 4 0 1 9 112 Total liabilities and capital 906,4 0 4 36,5 6 3 328,0 6 9 42,1 7 5 37,5 0 8 84,5 3 5 101,4 3 9 75,8 2 4 29,2 7 6 17,0 3 5 30,2 3 0 35,2 7 8 88,473 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 Sep 3, 2008 Federal Reserve notes outstanding 990,711 Less: Notes held by F.R. Banks not subject to collateralization 190,992 Federal Reserve notes to be collateralized 799,719 Collateral held against Federal Reserve notes 799,719 Gold certificate account 11,037 Special drawing rights certificate account 2,200 U.S. Treasury and agency securities pledged1 548,031 Other assets pledged 238,451 Memo: Total U.S. Treasury and agency securities1 588,726 Less: Face value of securities under reverse repurchase agreements 40,694 U.S. Treasury and agency securities eligible to be pledged 548,031 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.