FEDERAL RESERVE statistical release

For Release at

4:30 P.M. EST

December 18, 2014

Publication Note

The Board’s H.4.1 statistical release, “Factors Affecting Reserve Balances of Depository

Institutions and Condition Statement of Federal Reserve Banks,” for the week ending December

24, 2014, will be published on Monday, December 29, 2014, because the federal government is

closed on both Thursday, December 25, 2014, and Friday, December 26, 2014.
FEDERAL RESERVE statistical release

H.4.1

Factors Affecting Reserve Balances of Depository Institutions and

Condition Statement of Federal Reserve Banks December 18, 2014

1. Factors Affecting Reserve Balances of Depository Institutions

Millions of dollars

Averages of daily figures

Change from week ended

Reserve Bank credit, related items, and

reserve balances of depository institutions at

Federal Reserve Banks

Week ended

Dec 17, 2014 Dec 10, 2014 Dec 18, 2013

Wednesday

Dec 17, 2014

Reserve Bank credit 4,463,861 + 16,101 + 505,375 4,462,036

Securities held outright1 4,243,803 + 13,728 + 510,921 4,242,129

U.S. Treasury securities 2,461,519 - 65 + 269,259 2,461,495

Bills2 0 0 0 0

Notes and bonds, nominal2 2,346,713 0 + 259,494 2,346,712

Notes and bonds, inflation-indexed2 98,469 0 + 7,090 98,469

Inflation compensation3 16,337 - 66 + 2,675 16,314

Federal agency debt securities2 38,677 0 - 18,544 38,677

Mortgage-backed securities4 1,743,607 + 13,793 + 260,206 1,741,957

Unamortized premiums on securities held outright5 207,805 + 203 - 1,063 207,632

Unamortized discounts on securities held outright5 -18,477 + 32 - 7,073 -18,463

Repurchase agreements6 0 0 0 0

Loans 95 - 5 - 73 90

Primary credit 8 + 1 + 2 9

Secondary credit 0 0 0 0

Seasonal credit 88 - 5 + 24 81

Term Asset-Backed Securities Loan Facility7 0 0 - 98 0

Other credit extensions 0 0 0 0

Net portfolio holdings of Maiden Lane LLC8 1,681 0 + 161 1,678

Net portfolio holdings of Maiden Lane II LLC9 0 0 - 63 0

Net portfolio holdings of Maiden Lane III LLC9 0 0 - 22 0

Net portfolio holdings of TALF LLC10 0 0 - 109 0

Float -534 + 50 + 86 -535

Central bank liquidity swaps11 2 0 - 271 2

Other Federal Reserve assets12 29,485 + 2,091 + 2,880 29,501

Foreign currency denominated assets13 21,492 + 262 - 2,465 21,463

Gold stock 11,041 0 0 11,041

Special drawing rights certificate account 5,200 0 0 5,200

Treasury currency outstanding14 46,314 + 14 + 826 46,314

Total factors supplying reserve funds 4,547,909 + 16,377 + 503,736 4,546,054

Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.
H.4.1

1. Factors Affecting Reserve Balances of Depository Institutions (continued)

Millions of dollars

Averages of daily figures

Change from week ended

Reserve Bank credit, related items, and

reserve balances of depository institutions at

Federal Reserve Banks

Week ended

Dec 17, 2014 Dec 10, 2014 Dec 18, 2013

Wednesday

Dec 17, 2014

Currency in circulation14 1,322,792 + 4,391 + 93,082 1,326,814

Reverse repurchase agreements15 235,294 - 4,612 + 119,431 230,016

Foreign official and international accounts 97,267 + 4,967 - 2,884 98,233

Others 138,027 - 9,579 + 122,315 131,783

Treasury cash holdings 187 - 5 - 40 190

Deposits with F.R. Banks, other than reserve balances 137,414 - 338,492 + 24,691 186,366

Term deposits held by depository institutions 0 - 402,153 - 13,532 0

U.S. Treasury, General Account 114,776 + 54,684 + 44,204 171,314

Foreign official 5,207 - 12 - 2,776 5,206

Other16 17,431 + 8,988 - 3,205 9,846

Other liabilities and capital17 65,315 + 1,327 + 966 63,559

Total factors, other than reserve balances,

absorbing reserve funds 1,761,001 - 337,393 + 238,129 1,806,944

Reserve balances with Federal Reserve Banks 2,786,907 + 353,769 + 265,607 2,739,110

Note: Components may not sum to totals because of rounding.

1. Includes securities lent to dealers under the overnight securities lending facility; refer to table 1A.

2. Face value of the securities.

3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities.

4. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The current face value shown is the remaining principal balance of

the securities.

5. Reflects the premium or discount, which is the difference between the purchase price and the face value of the securities that has not been

amortized. For U.S. Treasury and Federal agency debt securities, amortization is on a straight-line basis. For mortgage-backed securities,

amortization is on an effective-interest basis.

6. Cash value of agreements.

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 4 and the note on consolidation accompanying table 6.

9. 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. Refer to the note on consolidation accompanying table 6.

10. Refer to the note on consolidation accompanying table 6.

11. 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.

12. Includes accrued interest, which represents the daily accumulation of interest earned, and other accounts receivable. Also, includes Reserve Bank

premises and equipment net of allowances for depreciation.

13. Revalued daily at current foreign currency exchange rates.

14. Estimated.

15. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities.

16. Includes deposits held at the Reserve Banks by international and multilateral organizations, government-sponsored enterprises, and designated

financial market utilities.

17. Includes the liability for interest on Federal Reserve notes due to U.S. Treasury.

Sources: Federal Reserve Banks and the U.S. Department of the Treasury.
H.4.1

1A. Memorandum Items

Millions of dollars

Averages of daily figures

Memorandum item Week ended Change from week ended

Dec 17, 2014 Dec 10, 2014 Dec 18, 2013

Wednesday

Dec 17, 2014

Securities held in custody for foreign official and international

accounts 3,328,158 + 3,942 - 51,598 3,318,643

Marketable U.S. Treasury securities1 2,986,660 + 5,113 - 34,363 2,978,012

Federal agency debt and mortgage-backed securities2 299,623 - 969 - 15,824 298,807

Other securities3 41,875 - 201 - 1,410 41,824

Securities lent to dealers 11,338 - 292 + 92 11,461

Overnight facility4 11,338 - 292 + 92 11,461

U.S. Treasury securities 10,689 - 295 + 438 10,821

Federal agency debt securities 649 + 3 - 346 640

Note: Components may not sum to totals because of rounding.

1. Includes securities and U.S. Treasury STRIPS at face value, and inflation compensation on TIPS. Does not include securities pledged as collateral

to foreign official and international account holders against reverse repurchase agreements with the Federal Reserve presented in tables 1, 5, and 6.

2. Face value of federal agency securities and current face value of mortgage-backed securities, which is the remaining principal balance of the

securities.

3. Includes non-marketable U.S. Treasury securities, supranationals, corporate bonds, asset-backed securities, and commercial paper at face value.

4. Face value. Fully collateralized by U.S. Treasury securities.

2. Maturity Distribution of Securities, Loans, and Selected Other Assets and Liabilities, December 17, 2014

Millions of dollars

Remaining Maturity Within 15

days

16 days to

90 days

91 days to

1 year

Over 1 year

to 5 years

Over 5 year

to 10 years

Over 10

years

All

Loans 39 52 0 0 0 ... 90

U.S. Treasury securities1

Holdings 1 4 3,516 1,105,863 693,726 658,385 2,461,495

Weekly changes + 1 0 - 1 - 9 - 9 - 48 - 65

Federal agency debt securities2

Holdings 0 1,800 3,933 30,597 0 2,347 38,677

Weekly changes 0 0 0 0 0 0 0

Mortgage-backed securities3

Holdings 0 0 0 13 6,563 1,735,382 1,741,957

Weekly changes 0 0 0 0 + 37 + 12,105 + 12,141

Repurchase agreements4 0 0 ... ... ... ... 0

Central bank liquidity swaps5 2 0 0 0 0 0 2

Reverse repurchase agreements4 130,016 100,000 ... ... ... ... 230,016

Term deposits 0 0 0 ... ... ... 0

Note: Components may not sum to totals because of rounding.

...Not applicable.

1. 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.

2. Face value.

3. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The current face value shown is the remaining principal balance of the securities.

4. Cash value of agreements.

5. 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.
H.4.1

3. Supplemental Information on Mortgage-Backed Securities

Millions of dollars

Wednesday Account name Dec 17, 2014

Mortgage-backed securities held outright1 1,741,957

Commitments to buy mortgage-backed securities2 31,300

Commitments to sell mortgage-backed securities2 0

Cash and cash equivalents3 84

1. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The current face value shown is the remaining principal balance of the securities.

2. Current face value. Generally settle within 180 days and include commitments associated with outright transactions, dollar rolls, and coupon swaps.

3. This amount is included in other Federal Reserve assets in table 1 and in other assets in table 5 and table 6.

4. Information on Principal Accounts of Maiden Lane LLC

Millions of dollars

Wednesday Account name Dec 17, 2014

Net portfolio holdings of Maiden Lane LLC1 1,678

Outstanding principal amount of loan extended by the Federal Reserve Bank of New York2 0

Accrued interest payable to the Federal Reserve Bank of New York2 0

Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co.3 0

1. Fair value. Fair value reflects an estimate of the price that would be received upon selling an asset if the transaction were to be conducted in an

orderly market on the measurement date. Revalued quarterly. This table reflects valuations as of September 30, 2014. 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 6.

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 5 and table 6.

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. The remaining outstanding balances of the senior loan

from FRBNY to Maiden Lane LLC, and the subordinated loan from JPMorgan Chase & Co. to Maiden Lane LLC were repaid in full, with interest.
H.4.1

5. Consolidated Statement of Condition of All Federal Reserve Banks

Millions of dollars

Change since

Assets, liabilities, and capital Wednesday Wednesday Eliminations from

consolidation

Wednesday

Dec 17, 2014 Dec 10, 2014 Dec 18, 2013

Assets

Gold certificate account 11,037 0 0

Special drawing rights certificate account 5,200 0 0

Coin 1,876 + 14 - 88

Securities, unamortized premiums and discounts,

repurchase agreements, and loans 4,431,389 + 12,244 + 494,118

Securities held outright1 4,242,129 + 12,076 + 502,210

U.S. Treasury securities 2,461,495 - 65 + 264,203

Bills2 0 0 0

Notes and bonds, nominal2 2,346,712 - 1 + 254,438

Notes and bonds, inflation-indexed2 98,469 0 + 7,090

Inflation compensation3 16,314 - 65 + 2,675

Federal agency debt securities2 38,677 0 - 18,544

Mortgage-backed securities4 1,741,957 + 12,141 + 256,550

Unamortized premiums on securities held outright5 207,632 + 159 - 1,250

Unamortized discounts on securities held outright5 -18,463 + 35 - 6,752

Repurchase agreements6 0 0 0

Loans 90 - 27 - 91

Net portfolio holdings of Maiden Lane LLC7 1,678 - 3 + 159

Net portfolio holdings of Maiden Lane II LLC8 0 0 - 63

Net portfolio holdings of Maiden Lane III LLC8 0 0 - 22

Net portfolio holdings of TALF LLC9 0 0 - 109

Items in process of collection (0) 101 + 21 + 2

Bank premises 2,264 + 1 - 23

Central bank liquidity swaps10 2 0 - 271

Foreign currency denominated assets11 21,463 + 38 - 2,513

Other assets12 27,237 + 1,067 + 2,994

Total assets (0) 4,502,247 + 13,382 + 494,185

Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.
H.4.1

5. Consolidated Statement of Condition of All Federal Reserve Banks (continued)

Millions of dollars

Change since

Assets, liabilities, and capital Wednesday Wednesday Eliminations from

consolidation

Wednesday

Dec 17, 2014 Dec 10, 2014 Dec 18, 2013

Liabilities

Federal Reserve notes, net of F.R. Bank holdings 1,282,562 + 5,146 + 93,386

Reverse repurchase agreements13 230,016 - 17,337 + 118,050

Deposits (0) 2,925,476 + 26,007 + 282,395

Term deposits held by depository institutions 0 - 402,153 - 13,532

Other deposits held by depository institutions 2,739,110 + 310,176 + 273,178

U.S. Treasury, General Account 171,314 + 122,507 + 54,316

Foreign official 5,206 - 46 - 2,767

Other14 (0) 9,846 - 4,477 - 28,800

Deferred availability cash items (0) 635 + 12 - 158

Other liabilities and accrued dividends15 6,443 - 466 - 1,618

Total liabilities (0) 4,445,131 + 13,361 + 492,054

Capital accounts

Capital paid in 28,558 + 10 + 1,066

Surplus 28,558 + 10 + 1,066

Other capital accounts 0 0 0

Total capital 57,116 + 21 + 2,132

Note: Components may not sum to totals because of rounding.

1. Includes securities lent to dealers under the overnight securities lending facility; refer to table 1A.

2. Face value of the securities.

3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities.

4. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The current face value shown is the remaining principal balance of the securities.

5. Reflects the premium or discount, which is the difference between the purchase price and the face value of the securities that has not been

amortized. For U.S. Treasury and Federal agency debt securities, amortization is on a straight-line basis. For mortgage-backed securities,

amortization is on an effective-interest basis.

6. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities.

7. Refer to table 4 and the note on consolidation accompanying table 6.

8. 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. Refer to the note on consolidation accompanying table 6.

9. Refer to the note on consolidation accompanying table 6.

10. 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.

11. Revalued daily at current foreign currency exchange rates.

12. Includes accrued interest, which represents the daily accumulation of interest earned, and other accounts receivable.

13. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities.

14. Includes deposits held at the Reserve Banks by international and multilateral organizations, government-sponsored enterprises, and designated

financial market utilities.

15. Includes the liability for interest on Federal Reserve notes due to U.S. Treasury.
H.4.1

6. Statement of Condition of Each Federal Reserve Bank, December 17, 2014

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 11,037 352 4,125 338 464 824 1,349 706 278 173 291 880 1,257

Special drawing rights certificate acct. 5,200 196 1,818 210 237 412 654 424 150 90 153 282 574

Coin 1,876 30 78 124 121 308 207 279 24 44 151 189 322

Securities, unamortized premiums and

discounts, repurchase agreements,

and loans 4,431,389 89,638 2,719,770 106,160 96,751 247,668 244,968 181,121 54,660 27,201 58,390 135,027 470,034

Securities held outright1 4,242,129 85,811 2,603,664 101,628 92,620 237,095 234,502 173,382 52,324 25,997 55,879 129,259 449,967

U.S. Treasury securities 2,461,495 49,792 1,510,776 58,970 53,743 137,575 136,070 100,605 30,361 15,085 32,424 75,002 261,093

Bills2 0 0 0 0 0 0 0 0 0 0 0 0 0

Notes and bonds3 2,461,495 49,792 1,510,776 58,970 53,743 137,575 136,070 100,605 30,361 15,085 32,424 75,002 261,093

Federal agency debt securities2 38,677 782 23,739 927 844 2,162 2,138 1,581 477 237 509 1,178 4,103

Mortgage-backed securities4 1,741,957 35,237 1,069,150 41,732 38,033 97,359 96,294 71,196 21,486 10,675 22,946 53,078 184,771

Unamortized premiums on securities 

held outright5 207,632 4,200 127,437 4,974 4,533 11,605 11,478 8,486 2,561 1,272 2,735 6,327 22,024

Unamortized discounts on securities 

held outright5 -18,463 -373 -11,332 -442 -403 -1,032 -1,021 -755 -228 -113 -243 -563 -1,958

Repurchase agreements6 0 0 0 0 0 0 0 0 0 0 0 0 0

Loans 90 1 0 0 0 0 8 8 3 45 20 4 2

Net portfolio holdings of Maiden

Lane LLC7 1,678 0 1,678 0 0 0 0 0 0 0 0 0 0

Net portfolio holdings of Maiden

Lane II LLC8 0 0 0 0 0 0 0 0 0 0 0 0 0

Net portfolio holdings of Maiden

Lane III LLC8 0 0 0 0 0 0 0 0 0 0 0 0 0

Net portfolio holdings of TALF LLC9 0 0 0 0 0 0 0 0 0 0 0 0 0

Items in process of collection 101 0 0 0 0 0 100 0 0 1 0 0 0

Bank premises 2,264 124 438 75 110 220 213 199 122 96 242 224 201

Central bank liquidity swaps10 2 0 1 0 0 0 0 0 0 0 0 0 0

Foreign currency denominated

assets11 21,463 976 6,904 1,614 1,707 4,475 1,234 593 180 91 226 359 3,105

Other assets12 27,237 580 16,371 772 590 1,652 1,485 1,093 380 193 377 936 2,809

Interdistrict settlement account 0 + 25,236 - 78,174 - 11,292 + 19,418 - 14,720 - 195 - 11,740 - 7,027 + 2,065 - 973 + 12,878 + 64,526

Total assets 4,502,247 117,132 2,673,008 98,000 119,397 240,839 250,015 172,675 48,768 29,953 58,857 150,774 542,828

Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.
H.4.1

6. Statement of Condition of Each Federal Reserve Bank, December 17, 2014 (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 1,470,496 45,742 477,500 46,107 68,792 103,294 214,740 101,275 41,227 23,094 38,096 120,058 190,573

Less: Notes held by F.R. Banks 187,935 5,224 64,266 5,551 8,946 11,984 23,316 11,122 4,937 3,368 5,010 16,970 27,241

Federal Reserve notes, net 1,282,562 40,518 413,233 40,556 59,846 91,309 191,425 90,153 36,290 19,726 33,085 103,088 163,332

Reverse repurchase agreements13 230,016 4,653 141,175 5,510 5,022 12,856 12,715 9,401 2,837 1,410 3,030 7,009 24,398

Deposits 2,925,476 69,176 2,097,207 48,478 49,809 122,912 41,668 71,252 8,957 8,320 22,003 39,615 346,078

Term deposits held by depository

institutions 0 0 0 0 0 0 0 0 0 0 0 0 0

Other deposits held by depository

institutions 2,739,110 69,172 1,911,046 48,446 49,805 122,788 41,659 71,239 8,957 8,320 21,999 39,609 346,070

U.S. Treasury, General Account 171,314 0 171,314 0 0 0 0 0 0 0 0 0 0

Foreign official 5,206 2 5,179 3 3 8 2 1 0 0 0 1 6

Other14 9,846 2 9,669 30 0 115 6 12 0 0 4 5 2

Deferred availability cash items 635 0 0 0 0 0 505 0 0 130 0 0 0

Interest on Federal Reserve notes due

to U.S. Treasury15 1,826 31 1,190 51 41 24 104 79 22 9 22 57 197

Other liabilities and accrued

dividends16 4,616 176 1,786 212 224 632 347 258 132 118 115 185 432

Total liabilities 4,445,131 114,553 2,654,593 94,807 114,941 227,733 246,763 171,144 48,238 29,713 58,256 149,954 534,437

Capital

Capital paid in 28,558 1,290 9,208 1,597 2,228 6,553 1,626 766 265 120 301 410 4,196

Surplus 28,558 1,290 9,208 1,597 2,228 6,553 1,626 766 265 120 301 410 4,196

Other capital 0 0 0 0 0 0 0 0 0 0 0 0 0

Total liabilities and capital 4,502,247 117,132 2,673,008 98,000 119,397 240,839 250,015 172,675 48,768 29,953 58,857 150,774 542,828

Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.
H.4.1

6. Statement of Condition of Each Federal Reserve Bank, December 17, 2014 (continued)

1. Includes securities lent to dealers under the overnight securities lending facility; refer to table 1A.

2. Face value of the securities.

3. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities.

4. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The current face value shown is the remaining principal balance of the securities.

5. Reflects the premium or discount, which is the difference between the purchase price and the face value of the securities that has not been amortized. For U.S. Treasury and Federal agency debt

securities, amortization is on a straight-line basis. For mortgage-backed securities, amortization is on an effective-interest basis.

6. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities.

7. Refer to table 4 and the note on consolidation below.

8. 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. Refer to

the note on consolidation below.

9. Refer to the note on consolidation below.

10. 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.

11. Revalued daily at current foreign currency exchange rates.

12. Includes accrued interest, which represents the daily accumulation of interest earned, and other accounts receivable.

13. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities.

14. Includes deposits held at the Reserve Banks by international and multilateral organizations, government-sponsored enterprises, and designated financial market utilities.

15. Represents the estimated weekly remittances to U.S. Treasury as interest on Federal Reserve notes or, in those cases where the Reserve Bank’s net earnings are not sufficient to equate surplus

to capital paid-in, the deferred asset for interest on Federal Reserve notes. The amount of any deferred asset, which is presented as a negative amount in this line, represents the amount of the

Federal Reserve Bank’s earnings that must be retained before remittances to the U.S. Treasury resume. The amounts on this line are calculated in accordance with Board of Governors policy,

which requires the Federal Reserve Banks to remit residual earnings to the U.S. Treasury as interest on Federal Reserve notes after providing for the costs of operations, payment of dividends,

and the amount necessary to equate surplus with capital paid-in.

Note on consolidation:

The Federal Reserve Bank of New York (FRBNY) 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 June 14, 2012, the remaining outstanding balance of the senior loan from FRBNY to Maiden Lane

LLC was repaid in full, with interest. On November 15, 2012, the remaining outstanding balance of the subordinated loan from JPMorgan Chase & Co. to Maiden Lane LLC was repaid in full, with

interest. 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. had written credit default swap contracts. On June 14, 2012, the loan from FRBNY to Maiden Lane III was repaid in full, with interest. 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 March 1, 2012, the loan from FRBNY to Maiden Lane II was repaid in full, with interest. 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. On January 15, 2013 the FRBNY’s commitment to extend credit to TALF LLC was eliminated.

The FRBNY was the primary beneficiary of TALF LLC, because of the two beneficiaries of the LLC, the FRBNY and the U.S. Treasury, the FRBNY was primarily responsible for directing the financial activities of

TALF LLC. The FRBNY was the primary beneficiary of the other LLCs cited above because it received a majority of any residual returns of the LLCs and absorbed a majority of any residual losses of the LLCs.

Consistent with generally accepted accounting principles, the assets and liabilities of these LLCs were 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 were eliminated, the net assets of the LLCs appeared as assets on the previous page (and in

table 1 and table 5), and the liabilities of the LLCs to entities other than the FRBNY, including those with recourse only to the portfolio holdings of the LLCs, were included in other liabilities in this table (and table

1 and table 5).
H.4.1

7. Collateral Held against Federal Reserve Notes: Federal Reserve Agents’ Accounts

Millions of dollars

Wednesday Federal Reserve notes and collateral Dec 17, 2014

Federal Reserve notes outstanding 1,470,496

Less: Notes held by F.R. Banks not subject to collateralization 187,935

Federal Reserve notes to be collateralized 1,282,562

Collateral held against Federal Reserve notes 1,282,562

Gold certificate account 11,037

Special drawing rights certificate account 5,200

U.S. Treasury, agency debt, and mortgage-backed securities pledged1,2 1,266,325

Other assets pledged 0

Memo:

Total U.S. Treasury, agency debt, and mortgage-backed securities1,2 4,242,129

Less: Face value of securities under reverse repurchase agreements 211,574

U.S. Treasury, agency debt, and mortgage-backed securities eligible to be pledged 4,030,555

Note: Components may not sum to totals because of rounding.

1. Includes face value of U.S. Treasury, agency debt, and mortgage-backed securities held outright, compensation to

adjust for the effect of inflation on the original face value of inflation-indexed securities, and cash value of repurchase

agreements.

2. Includes securities lent to dealers under the overnight securities lending facility; refer to table 1A.