On October 8, 2008, the Federal Reserve Board announced that it had authorized the Federal Reserve Bank of
New York to borrow securities from certain regulated U.S. insurance subsidiaries of the American International
Group (AIG), under section 13(3) of the Federal Reserve Act.  This transaction is economically equivalent to
an extension of credit collateralized by the securities borrowed.  The Board's H.4.1 statistical release,
"Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve
Banks," reports the funds extended to AIG under this transaction with other lending to AIG in table 1 in the
line "Other credit extensions."  In tables 3, 4, and 5, all of the lending to AIG is included in the item
"Other loans."


FEDERAL RESERVE statistical release

H.4.1
Factors Affecting Reserve Balances of Depository Institutions and
Condition Statement of Federal Reserve Banks
                                                                                            October 9, 2008
1. Factors Affecting Reserve Balances of Depository Institutions
Millions of dollars
Reserve Bank credit, related items, and                            Averages of daily figures
reserve balances of depository institutions at            Week ended   Change from week ended     Wednesday
Federal Reserve Banks                                     Oct 8, 2008  Oct 1, 2008 Oct 10, 2007  Oct 8, 2008

Reserve Bank credit                                       1,494,726    + 103,605    + 636,273    1,575,626
  Securities held outright                                  490,942    +   2,401    - 288,671      490,684       
    U.S. Treasury (1)                                       476,594    -      18    - 303,019      476,579
      Bills (2)                                              18,423            0    - 248,596       18,423
      Notes and bonds, nominal (2)                          411,731            0    -  60,411      411,731
      Notes and bonds, inflation-indexed (2)                 39,832            0    +   4,079       39,832
      Inflation compensation (3)                              6,609    -      18    +   1,910        6,593
    Federal agency (2)                                       14,347    +   2,418    +  14,347       14,105      
  Repurchase agreements (4)                                  81,143    -   1,857    +  43,072      100,000
  Term auction credit                                       149,000    -     143    + 149,000      149,000  
  Other loans                                               420,160    +  52,364    + 419,903      430,866
    Primary credit                                           75,010    +  30,547    +  74,897       98,107
    Secondary credit                                              4    -     282    +       4            0
    Seasonal credit                                              39    -      35    -     105           33
    Primary dealer and other broker-dealer credit(5)        134,066    -  13,626    + 134,066      122,940
    Asset-backed commercial paper money market
      mutual fund liquidity facility                        145,890    +  23,786    + 145,890      139,481
    Other credit extensions                                  65,151    +  11,975    +  65,151       70,304
  Net portfolio holdings of Maiden Lane LLC (6)              29,452    +      39    +  29,452       29,487
  Float                                                      -1,042    +     173    -     533       -1,545
  Other Federal Reserve assets                              325,071    +  50,627    + 284,050      377,135
Gold stock                                                   11,041            0            0       11,041
Special drawing rights certificate account                    2,200            0            0        2,200
Treasury currency outstanding (7)                            38,745    +      14    +      92       38,745
       
Total factors supplying reserve funds                     1,546,713    + 103,619    + 636,366    1,627,613
                                                                   
Currency in circulation (7)                                 844,490    +   8,138    +  28,337      848,644
Reverse repurchase agreements (8)                            94,343    +   6,434    +  59,994       77,349
  Foreign official and international accounts                76,486    +   5,719    +  42,137       77,349
  Dealers                                                    17,857    +     714    +  17,857            0
Treasury cash holdings                                          262    -       7    -      78          276
Deposits with F.R. Banks, other than reserve balances       442,151    + 137,497    + 430,844      479,629       
  U.S. Treasury, general account                              7,910    -     719    +   3,531        5,544
  U.S. Treasury, supplementary financing account            405,771    + 139,690    + 405,771      459,246
  Foreign official                                              115    -      18    +      18          101
  Service-related                                             7,717    -       1    +   1,247        7,717
    Required clearing balances                                7,717    -       1    +   1,247        7,717
    Adjustments to compensate for float                           0            0            0            0
  Other                                                      20,637    -   1,456    +  20,275        7,021
Other liabilities and capital (9)                            45,717    -   1,197    +   4,596       46,097

Total factors, other than reserve balances,                                        
   absorbing reserve funds                                1,426,963    + 150,865    + 523,693    1,451,994

Reserve balances with Federal Reserve Banks                 119,749    -  47,247    + 112,671      175,619
                                                                
Note: Components may not sum to totals because of rounding.

1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer
   to table 1A.  
2. Face value of the securities. 
3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed
   securities. 
4. Cash value of agreements.
5. Includes credit extended through the Primary Dealer Credit Facility and credit extended to certain
   other broker-dealers.
6. Fair value.  Refer to table 2 and the note on consolidation accompanying table 5.
7. Estimated.
8. Cash value of agreements, which are collateralized by U.S. Treasury securities.
9. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New
   York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC.
   Refer to table 2 and the note on consolidation accompanying table 5.

Sources: Federal Reserve Banks and the U.S. Department of the Treasury.


1A. Memorandum Items,    October 8, 2008 
Millions of dollars
                                                                   Averages of daily figures
Memorandum item                                           Week ended   Change from week ended     Wednesday
                                                          Oct 8, 2008  Oct 1, 2008 Oct 10, 2007  Oct 8, 2008

Marketable securities held in custody for foreign
      official and international accounts (1)             2,485,145    +  19,494    + 481,282    2,482,380
  U.S. Treasury                                           1,527,818    +  32,629    + 305,983    1,537,578
  Federal agency                                            957,327    -  13,135    + 175,299      944,802
Securities lent to dealers                                  211,345    -  44,456    + 208,289      217,504   
  Overnight facility (2)                                     20,002    -   2,234    +  16,946       25,658
  Term facility (3)                                         191,343    -  42,222    + 191,343      191,846

Note: Components may not sum to totals because of rounding.

1. Face value of the securities.  Includes U.S. Treasury STRIPS and other zero-coupon bonds at face value.
2. Fully collateralized by U.S. Treasury securities.
3. Fully collateralized by U.S. Treasury securities, federal agency securities, and other highly rated debt
   securities.


2. Information on Principal Accounts of Maiden Lane LLC
Millions of dollars
                                                                                                  Wednesday
Account name                                                                                     Oct 8, 2008
         
Net portfolio holdings of Maiden Lane LLC (1)                                                       29,487

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)                                   186
Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3)        1,172
 
1. Fair value. Fair value reflects an estimate of the price that would be received upon selling an asset if
   the transaction were to be conducted in an orderly market on the measurement date.  Revalued quarterly. 
   This table reflects valuations as of      June 30, 2008.
2. Book value.  This amount was eliminated when preparing the Federal Reserve Bank of New York's statement
   of condition consistent with consolidation under generally accepted accounting principles.  Refer to
   the note on consolidation accompanying table 5.
3. Book value.  The fair value of these obligations is included in other liabilities and capital in table 1 
   and in other liabilities and accrued dividends in table 4 and table 5.

Note:  On June 26, 2008, the Federal Reserve Bank of New York (FRBNY) extended credit to Maiden Lane LLC 
under the authority of section 13(3) of the Federal Reserve Act.  This limited liability company was formed 
to acquire certain assets of Bear Stearns and to manage those assets through time to maximize repayment of 
the credit extended and to minimize disruption to financial markets.  Payments by Maiden Lane LLC from the 
proceeds of the net portfolio holdings will be made in the following order: operating expenses of the LLC, 
principal due to the FRBNY, interest due to the FRBNY, principal due to JPMorgan Chase & Co., and interest 
due to JPMorgan Chase & Co.  Any remaining funds will be paid to the FRBNY.


3. Maturity Distribution of Term Auction Credit, Other Loans, and Securities,    October 8, 2008
Millions of dollars
                                                     U.S. Treasury       Federal agency                Reverse
Remaining maturity             Term      Other       securities (2)        securities       Repurchase repurchase
                             auction     loans              Weekly                Weekly    agreements agreements
                              credit      (1)     Holdings  changes    Holdings   changes      (3)         (3)    
Within 15 days                99,000    212,462     15,615  +   2,156          0  -     395     60,000     77,349
16 days to 90 days            50,000    128,865     26,869  +   2,660      9,628  +     450     40,000          0
91 days to 1 year                ---     19,240     65,272  -   4,820      4,477  -     450        ---        ---
Over 1 year to 5 years           ---     70,299    174,085  -      13          0          0        ---        ---
Over 5 years to 10 years         ---        ---     93,353  -       9          0          0        ---        ---
Over 10 years                    ---        ---    101,384  -      17          0          0        ---        ---
                             
All                          149,000    430,866    476,579  -      42     14,105  -     395    100,000     77,349

Note: Components may not sum to totals because of rounding.
---   Not applicable.

1. Excludes the loan from the Federal Reserve Bank of New York to Maiden Lane LLC that was eliminated when
   preparing that Bank's statement of condition consistent with consolidation under generally accepted
   accounting principles.  The loan to Maiden Lane LLC is designed to be repaid from the orderly
   liquidation of Maiden Lane LLC's portfolio holdings and does not have a fixed amortization schedule.
2. Includes the original face value of inflation-indexed securities and compensation that adjusts for the 
   effect of inflation on the original face value of such securities. 
3. Cash value of agreements.


4. Consolidated Statement of Condition of All Federal Reserve Banks
Millions of dollars
                                                 Eliminations                          Change since
                                                     from       Wednesday        Wednesday        Wednesday
Assets, liabilities, and capital                consolidation  Oct 8, 2008      Oct 1, 2008     Oct 10, 2007

Assets
Gold certificate account                                           11,037                0                0
Special drawing rights certificate account                          2,200                0                0
Coin                                                                1,522        +      13        +     379
Securities, repurchase agreements, term auction
      credit, and other loans                                   1,170,550        +  37,907        + 340,769
  Securities held outright                                        490,684        -     437        - 288,924
    U.S. Treasury (1)                                             476,579        -      42        - 303,029       
      Bills (2)                                                    18,423                0        - 248,596
      Notes and bonds, nominal (2)                                411,731                0        -  60,411
      Notes and bonds, inflation-indexed (2)                       39,832                0        +   4,079
      Inflation compensation (3)                                    6,593        -      42        +   1,899
    Federal agency (2)                                             14,105        -     395        +  14,105
  Repurchase agreements (4)                                       100,000        +  17,000        +  50,000    
  Term auction credit                                             149,000                0        + 149,000
  Other loans                                                     430,866        +  21,344        + 430,693
Net portfolio holdings of Maiden Lane LLC (5)                      29,487        +      40        +  29,487
Items in process of collection                         (462)        1,191        -      88        -   3,480
Bank premises                                                       2,170        +       3        +      67
Other assets (6)                                                  374,943        +  49,710        + 335,857
     
      Total assets                                     (462)    1,593,099        +  87,583        + 703,078
                          
Liabilities
Federal Reserve notes, net of F.R. Bank holdings                  811,692        +   7,713        +  31,944
Reverse repurchase agreements (7)                                  77,349        -  15,714        +  42,925
Deposits                                                 (0)      655,226        +  94,802        + 624,897       
  Depository institutions                                         183,314        +   4,023        + 157,776
  U.S. Treasury, general account                                    5,544        +     266        +   1,378
  U.S. Treasury, supplementary financing account                  459,246        + 114,773        + 459,246
  Foreign official                                                    101        -      36        +       4
  Other                                                  (0)        7,021        -  24,224        +   6,492
Deferred availability cash items                       (462)        2,736        -      33        -   1,977
Other liabilities and accrued dividends (8,9)                       4,109        +      98        -   1,899

      Total liabilities                                (462)    1,551,112        +  86,866        + 695,889
                          
Capital accounts
Capital paid in                                                    20,312                0        +   3,021
Surplus                                                            18,523        +       3        +   3,085
Other capital accounts                                              3,153        +     715        +   1,083

      Total capital                                                41,988        +     718        +   7,189

Note: Components may not sum to totals because of rounding.

1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer
   to table 1A.
2. Face value of the securities.
3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed
   securities. 
4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities.
5. Fair value.  Refer to table 2 and the note on consolidation accompanying table 5.
6. Includes assets denominated in foreign currencies and any exchange-translation assets, which are
   revalued daily at market exchange rates. 
7. Cash value of agreements, which are collateralized by U.S. Treasury securities.
8. Includes any exchange-translation liabilities, which are revalued daily at market exchange rates.
9. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New
   York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. 
   Refer to the note on consolidation accompanying table 5.


5. Statement of Condition of Each Federal Reserve Bank,    October 8, 2008
Millions of dollars
                                                                                                                                                            Kansas                 San
Assets, liabilities, and capital               Total     Boston   New York Philadelphia Cleveland   Richmond   Atlanta    Chicago   St. Louis  Minneapolis   City      Dallas   Francisco

Assets                        
Gold certificate account                      11,037        424      3,935        453        423        891      1,221        913        344        199        349        636      1,249
Special drawing rights certificate acct.       2,200        115        874         83        104        147        166        212         71         30         66         98        234
Coin                                           1,522         45         73        118        130        200        202        176         49         52        105        166        206
Securities, repurchase agreements, term
      auction credit, and other loans      1,170,550    171,804    563,322     32,449     30,777     94,228     62,297     56,064     22,681     11,658     24,274     26,126     74,870
  Securities held outright                   490,684     20,581    174,582     21,424     18,607     44,494     48,822     43,308     16,956      9,264     18,017     20,354     54,275
    U.S. Treasury (1)                        476,579     19,990    169,564     20,808     18,072     43,215     47,419     42,063     16,469      8,997     17,499     19,769     52,715
      Bills (2)                               18,423        773      6,555        804        699      1,671      1,833      1,626        637        348        676        764      2,038
      Notes and bonds (3)                    458,156     19,217    163,009     20,004     17,373     41,545     45,586     40,437     15,832      8,649     16,822     19,005     50,677
    Federal agency (2)                        14,105        592      5,018        616        535      1,279      1,403      1,245        487        266        518        585      1,560
  Repurchase agreements (4)                  100,000      4,194     35,579      4,366      3,792      9,068      9,950      8,826      3,456      1,888      3,672      4,148     11,061
  Term auction credit                        149,000      7,500    100,445          0      8,250     14,709      3,320      2,156      2,050         30      2,575      1,000      6,965     
  Other loans                                430,866    139,529    252,716      6,659        128     25,956        205      1,774        219        476         11        624      2,569
Net portfolio holdings of Maiden Lane 
      LLC (5)                                 29,487          0     29,487          0          0          0          0          0          0          0          0          0          0
Items in process of collection                 1,653         55          0        333        242         49        154        119         21        204         71        147        257
Bank premises                                  2,170        123        210         64        150        215        226        207        128        111        275        251        209
Other assets (6)                             374,943     20,833    100,279     35,405     25,335     97,231     28,673     16,896      3,951      7,083      4,257      7,579     27,421
Interdistrict settlement account                   0   -112,175   +212,519   - 23,917   - 17,272   - 81,526   + 12,739   +  6,443   +  3,397   -  1,535   +  4,075   +  2,362   -  5,110

      Total assets                         1,593,561     81,224    910,699     44,988     39,889    111,435    105,678     81,030     30,643     17,802     33,471     37,366     99,336

Note: Components may not sum to totals because of rounding.

1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A.
2. Face value of the securities.
3. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. 
4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities.
5. Fair value.  Refer to the note on consolidation below.
6. Includes assets denominated in foreign currencies and any exchange-translation assets, which are revalued daily at market exchange rates.

Note on consolidation:
On June 26, 2008, the Federal Reserve Bank of New York extended a loan under the authority of section 13(3) of the Federal Reserve Act to Maiden Lane LLC, a limited liability company 
formed to acquire certain assets of Bear Stearns.  The Federal Reserve Bank of New York is the primary beneficiary of Maiden Lane LLC.  Consistent with generally accepted accounting 
principles, the assets and liabilities of Maiden Lane LLC have been consolidated with the assets and liabilities of the Federal Reserve Bank of New York in the preparation of the
statements of condition shown on this release.  As a consequence of the consolidation, the extension of credit from the Federal Reserve Bank of New York to Maiden Lane LLC is
eliminated, the net assets of Maiden Lane LLC appear as an asset in this table (and table 1 and table 4), and the liabilities of Maiden Lane LLC to entities other than the Federal 
Reserve Bank of New York, including those with recourse only to the portfolio holdings of Maiden Lane LLC, are included in other liabilities on the next page (and in table 1 and 
table 4). 


5. Statement of Condition of Each Federal Reserve Bank,    October 8, 2008 (continued)
Millions of dollars
                                                                                                                                                            Kansas                 San
Assets, liabilities, and capital                Total     Boston   New York Philadelphia Cleveland   Richmond   Atlanta    Chicago   St. Louis  Minneapolis   City      Dallas   Francisco

Liabilities                         
Federal Reserve notes outstanding             990,167     37,544    352,964     41,536     40,176     81,609    120,090     80,679     29,958     17,470     30,803     54,830    102,508
  Less: Notes held by F.R. Banks              178,475      5,224     50,464      6,497      7,668     11,782     27,468     13,177      3,317      2,788      3,419     22,551     24,121
    Federal Reserve notes, net                811,692     32,320    302,500     35,039     32,508     69,827     92,622     67,502     26,641     14,682     27,384     32,279     78,386
Reverse repurchase agreements (1)              77,349      3,244     27,520      3,377      2,933      7,014      7,696      6,827      2,673      1,460      2,840      3,209      8,556
Deposits                                      655,226     43,488    568,226      1,213        744     23,363      1,367      3,454        753        580      2,544        830      8,664
  Depository institutions                     183,314     43,476     96,502      1,209        741     23,211      1,363      3,451        750        579      2,542        829      8,661
  U.S. Treasury, general account                5,544          0      5,544          0          0          0          0          0          0          0          0          0          0
  U.S. Treasury, supplementary
    financing account                         459,246          0    459,246          0          0          0          0          0          0          0          0          0          0
  Foreign official                                101          2         71          4          3         11          3          2          0          1          0          1          3
  Other                                         7,021         10      6,864          0          0        142          0          1          2          0          1          0          0
Deferred availability cash items                3,198         77          0        566        493        261        334        279         39        284        138        223        505
Other liabilities and accrued                 
  dividends (2,3)                               4,109        158      1,523        193        189        473        385        303        155        106        126        178        321
   
      Total liabilities                     1,551,574     79,287    899,769     40,389     36,867    100,938    102,403     78,365     30,260     17,112     33,032     36,718     96,432
                              
Capital                    
Capital paid in                                20,312        784      5,162      2,328      1,521      5,214      1,607      1,306        182        320        207        268      1,413
Surplus                                        18,523      1,050      4,685      1,814      1,291      4,999      1,426        815        180        355        193        364      1,351
Other capital                                   3,153        103      1,083        457        210        284        242        544         21         15         39         15        141

      Total liabilities and capital         1,593,561     81,224    910,699     44,988     39,889    111,435    105,678     81,030     30,643     17,802     33,471     37,366     99,336
                              
Note: Components may not sum to totals because of rounding.

1. Cash value of agreements, which are collateralized by U.S. Treasury securities.
2. Includes any exchange-translation liabilities, which are revalued daily at market exchange rates.
3. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of
   Maiden Lane LLC.  Refer to the note on consolidation on the previous page.


6. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts
Millions of dollars

Federal Reserve notes and collateral                                                              Wednesday
                                                                                                 Oct 8, 2008
              
Federal Reserve notes outstanding                                                                  990,167
  Less: Notes held by F.R. Banks not subject to collateralization                                  178,475
    Federal Reserve notes to be collateralized                                                     811,692 
Collateral held against Federal Reserve notes                                                      811,692
  Gold certificate account                                                                          11,037
  Special drawing rights certificate account                                                         2,200
  U.S. Treasury and agency securities pledged (1)                                                  516,710
  Other assets pledged                                                                             281,745

Memo:
Total U.S. Treasury and agency securities (1)                                                      590,684
  Less: Face value of securities under reverse repurchase agreements                                73,974
    U.S. Treasury and agency securities eligible to be pledged                                     516,710
   
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.