For release at
4:30 P.M. EST
January 6, 2011

The Board's H.4.1 statistical release, "Factors Affecting Reserve Balances of Depository Institutions
and Condition Statement of Federal Reserve Banks," has been modified to reflect an accounting
policy change that will result in a more transparent presentation of each Federal Reserve Bank's
capital accounts and distribution of residual earnings to the U.S. Treasury.  Although the accounting
policy change does not affect the amount of residual earnings that the Federal Reserve Banks
distribute to the U.S. Treasury, it may affect the timing of the distributions.  Consistent with long-
standing policy of the Board of Governors, the residual earnings of each Federal Reserve Bank, after
providing for the costs of operations, payment of dividends, and the amount necessary to equate
surplus with capital paid-in, are distributed weekly to the U.S. Treasury.  The distribution of residual
earnings to the U.S. Treasury is made in accordance with the Board of Governor's authority to levy
an interest charge on the Federal Reserve Banks based on the amount of each Federal Reserve
Bank's outstanding Federal Reserve notes.

Effective January 1, 2011, as a result of the accounting policy change, on a daily basis each Federal
Reserve Bank will adjust the balance in its surplus account to equate surplus with capital paid-in and,
in addition, will adjust its liability for the distribution of residual earnings to the U.S. Treasury.
Previously these adjustments were made only at year-end.  Adjusting the surplus account balance
and the liability for the distribution of residual earnings to the U.S. Treasury is consistent with the
existing requirement for daily accrual of many other items that appear in the Board's H.4.1 statistical
release.  The liability for the distribution of residual earnings to the U.S. Treasury will be reported as
"Interest on Federal Reserve notes due to U.S. Treasury" on table 10.  Previously, the amount
necessary to equate surplus with capital paid-in and the amount of the liability for the distribution of
residual earnings to the U.S. Treasury were included in "Other capital accounts" in table 9 and in
"Other capital" in table 10.

FEDERAL RESERVE statistical release
H.4.1
Factors Affecting Reserve Balances of Depository Institutions and
Condition Statement of Federal Reserve Banks
                                                                                              January 6, 2011
 
1. Factors Affecting Reserve Balances of Depository Institutions
Millions of dollars
Reserve Bank credit, related items, and                         Averages of daily figures         Wednesday  
reserve balances of depository institutions at             Week ended   Change from week ended    Jan 5, 2011
Federal Reserve Banks                                      Jan 5, 2011 Dec 29, 2010  Jan 6, 2010
 
Reserve Bank credit                                        2,410,816   +    3,081   +  194,474    2,418,014
  Securities held outright (1)                             2,163,563   +    4,386   +  318,610    2,170,586
    U.S. Treasury securities                               1,023,962   +   13,677   +  247,371    1,030,985
      Bills (2)                                               18,423            0            0       18,423
      Notes and bonds, nominal (2)                           950,990   +   13,424   +  243,341      956,554
      Notes and bonds, inflation-indexed (2)                  48,356   +      231   +    3,713       49,743
      Inflation compensation (3)                               6,194   +       22   +      317        6,265
    Federal agency debt securities (2)                       147,460            0   -   12,419      147,460
    Mortgage-backed securities (4)                           992,141   -    9,291   +   83,658      992,141
  Repurchase agreements (5)                                        0            0            0            0
  Term auction credit                                              0            0   -   75,918            0
  Other loans                                                 44,707   -      405   -   45,420       44,615
    Primary credit                                               100   +       48   -   19,353           10
    Secondary credit                                               0   -       15   -      954            0
    Seasonal credit                                               16   -        8   -        5           10
    Credit extended to American International
       Group, Inc., net (6)                                   19,919   -      359   -    2,247       19,961
    Term Asset-Backed Securities Loan Facility (7)            24,673   -       70   -   22,859       24,634
    Other credit extensions                                        0            0            0            0
  Net portfolio holdings of Commercial Paper
     Funding Facility LLC (8)                                      0            0   -   14,067            0
  Net portfolio holdings of Maiden Lane LLC (9)               26,974   +       39   +      268       27,009
  Net portfolio holdings of Maiden Lane II LLC (10)           16,125   -       32   +      465       15,942
  Net portfolio holdings of Maiden Lane III LLC (11)          23,152   +       21   +      478       23,202
  Net portfolio holdings of TALF LLC (12)                        665            0   +      367          665
  Preferred interests in AIA Aurora LLC and ALICO
     Holdings LLC (13)                                        26,338   +      281   +    1,232       26,385
  Float                                                       -1,696   -      284   +      586       -2,205
  Central bank liquidity swaps (14)                               75            0   -   10,197           75
  Other Federal Reserve assets (15)                          110,913   -      925   +   18,069      111,739
Gold stock                                                    11,041            0            0       11,041
Special drawing rights certificate account                     5,200            0            0        5,200
Treasury currency outstanding (16)                            43,581   +       14   +      890       43,581

Total factors supplying reserve funds                      2,470,638   +    3,094   +  195,364    2,477,836
 
Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.

 
1. Factors Affecting Reserve Balances of Depository Institutions (continued)
Millions of dollars
Reserve Bank credit, related items, and                         Averages of daily figures         Wednesday  
reserve balances of depository institutions at             Week ended   Change from week ended    Jan 5, 2011
Federal Reserve Banks                                      Jan 5, 2011 Dec 29, 2010  Jan 6, 2010
 
Currency in circulation (16)                                 982,756   -      944   +   55,492      981,520
Reverse repurchase agreements (17)                            59,416   +    3,653   -   15,685       57,555
  Foreign official and international accounts                 59,416   +    3,653   -   15,685       57,555
  Others                                                           0            0            0            0
Treasury cash holdings                                           177   -        7   -       64          180
Deposits with F.R. Banks, other than reserve balances        327,207   +   26,973   +  112,098      311,870
  Term deposits held by depository institutions                    0   -    5,113            0            0
  U.S. Treasury, general account                             115,386   +   27,914   -   62,957      105,713
  U.S. Treasury, supplementary financing account             199,964   +        1   +  194,963      199,964
  Foreign official                                             3,378   -      771   +      766        3,430
  Service-related                                              2,378   +       19   -      642        2,378
    Required clearing balances                                 2,378   +       19   -      642        2,378
    Adjustments to compensate for float                            0            0            0            0
  Other                                                        6,102   +    4,923   -   20,032          385
Funds from American International Group, Inc. asset
   dispositions, held as agent (18)                           26,896            0   +   26,896       26,896
Other liabilities and capital (19)                            72,430   -    1,027   +    8,962       69,070

Total factors, other than reserve balances,
   absorbing reserve funds                                 1,468,882   +   28,647   +  187,698    1,447,091

Reserve balances with Federal Reserve Banks                1,001,756   -   25,553   +    7,665    1,030,745
 
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. Current face value of the securities, which is the
   remaining principal balance of the underlying mortgages.
5. Cash value of agreements.
6. Includes outstanding principal and capitalized interest net of unamortized deferred commitment fees and
   allowance for loan restructuring. Excludes credit extended to consolidated LLCs.
7. Includes credit extended by the Federal Reserve Bank of New York to eligible borrowers through the Term
   Asset-Backed Securities Loan Facility.
8. Includes the book value of the commercial paper, net of amortized costs and related fees, and other
   investments held by the Commercial Paper Funding Facility LLC.
9.  Refer to table 4 and the note on consolidation accompanying table 10.
10. Refer to table 5 and the note on consolidation accompanying table 10.
11. Refer to table 6 and the note on consolidation accompanying table 10.
12. Refer to table 7 and the note on consolidation accompanying table 10.
13. Refer to table 8.
14. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when
    the foreign currency is returned to the foreign central bank. This exchange rate equals the market
    exchange rate used when the foreign currency was acquired from the foreign central bank.
15. Includes other assets denominated in foreign currencies, which are revalued daily at market exchange
    rates, accrued dividends on the Federal Reserve Bank of New York's (FRBNY) preferred interests in AIA
    Aurora LLC and ALICO Holdings LLC, and the fair value adjustment to credit extended by the FRBNY to
    eligible borrowers through the Term Asset-Backed Securities Loan Facility.
16. Estimated.
17. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt
    securities, and mortgage-backed securities.
18. Pending the closing of the recapitalization plan announced by American International Group, Inc. (AIG) on
    September 30, 2010, the cash proceeds from the disposition of certain AIG assets will be held by the
    FRBNY as agent. At the closing of the recapitalization plan, the proceeds will be used first to repay in
    full the credit extended to AIG by the FRBNY under the revolving credit facility and then to retire a
    portion of the FRBNY's preferred interests in AIA Aurora LLC and ALICO Holdings LLC (preferred
    interests). Alternatively, if the recapitalization plan is terminated under the terms of the plan, then
    the proceeds from the initial public offering of AIA and the sale of ALICO will be used to redeem the
    preferred interests in accordance with the AIA Aurora LLC	and ALICO Holdings LLC limited liability
    company agreements, and any excess proceeds from these transactions, as well as proceeds from the
    disposition of other assets, will be used to repay the credit extended to AIG under the revolving credit
    facility.
19. Includes the liabilities of Maiden Lane LLC, Maiden Lane II LLC, Maiden Lane III LLC, and TALF LLC to
    entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only
    to the portfolio holdings of these LLCs. Refer to table 4 through table 7 and the note on consolidation
    accompanying table 10. Also includes the liability for interest on Federal Reserve notes due to U.S.
    Treasury. Refer to table 9 and table 10.

Sources: Federal Reserve Banks and the U.S. Department of the Treasury.

 
1A. Memorandum Items
Millions of dollars
                                                                Averages of daily figures         Wednesday  
                                                           Week ended   Change from week ended    Jan 5, 2011
Memorandum item                                            Jan 5, 2011 Dec 29, 2010  Jan 6, 2010
 
Marketable securities held in custody for foreign
   official and international accounts (1)                 3,344,257   -    6,068   +  382,614    3,354,852
  U.S. Treasury securities                                 2,610,287   -    6,100   +  415,043    2,620,512
  Federal agency securities (2)                              733,969   +       31   -   32,430      734,340
Securities lent to dealers                                    19,459   +    8,829   +    1,865       13,613
  Overnight facility (3)                                      19,459   +    8,829   +    1,865       13,613
    U.S. Treasury securities                                  17,988   +    8,607   +    1,362       12,306
    Federal agency debt securities                             1,471   +      222   +      503        1,307
 
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 and
   mortgage-backed securities at original face value.
2. Includes debt and mortgage-backed securities.
3. Fully collateralized by U.S. Treasury securities.

 
2. Maturity Distribution of Securities, Loans, and Selected Other Assets and Liabilities,    January 5, 2011
Millions of dollars
                                       Within 15    16 days to   91 days to  Over 1 year  Over 5 years    Over 10        All     
Remaining maturity                        days       90 days       1 year     to 5 years   to 10 years     years    
 
Other loans (1)                               10           10            0       44,595            0           ...       44,615
U.S. Treasury securities (2)
  Holdings                                13,584       21,035       54,254      439,596      342,546       159,970    1,030,985
  Weekly changes                      -    6,019   +    5,991   -    1,726   +    5,693   +   10,046    +      900   +   14,883
Federal agency debt securities (3)
  Holdings                                 1,575       13,390       28,501       71,050       30,597         2,347      147,460
  Weekly changes                      +      446   -      446            0            0            0             0            0
Mortgage-backed securities (4)
  Holdings                                     0            0            0           24           22       992,095      992,141
  Weekly changes                               0            0            0            0   +        2    -        2            0
Asset-backed securities held by
   TALF LLC (5)                                0            0            0            0            0             0            0
Repurchase agreements (6)                      0            0          ...          ...          ...           ...            0
Central bank liquidity swaps (7)              75            0            0            0            0             0           75

Reverse repurchase agreements (6)         57,555            0          ...          ...          ...           ...       57,555
Term deposits                                  0            0            0          ...          ...           ...            0
 
Note: Components may not sum to totals because of rounding.
. . . Not applicable.

1. Excludes the loans from the Federal Reserve Bank of New York (FRBNY) to Maiden Lane LLC, Maiden Lane II LLC, Maiden Lane III
   LLC, and TALF LLC. The loans were eliminated when preparing the FRBNY's statement of condition consistent with consolidation
   under generally accepted accounting principles.
2. Face value. For inflation-indexed securities, includes the original face value and compensation that adjusts for the effect of
   inflation on the original face value of such securities.
3. Face value.
4. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Current face value of the securities, which is the remaining principal
   balance of the underlying mortgages.
5. Face value of asset-backed securities held by TALF LLC, which is the remaining principal balance of the underlying assets.
6. Cash value of agreements.
7. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency
   is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was
   acquired from the foreign central bank.

 
3. Supplemental Information on Mortgage-Backed Securities Purchase Program
Millions of dollars
                                                                                                                        Wednesday   
Account name                                                                                                            Jan 5, 2011 
 
Mortgage-backed securities held outright (1)                                                                             992,141

Commitments to buy mortgage-backed securities (2)                                                                              0
Commitments to sell mortgage-backed securities (2)                                                                             0

Cash and cash equivalents (3)                                                                                                  0
 
1. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Current face value of the securities, which is the remaining principal
   balance of the underlying mortgages.
2. Current face value. Generally settle within 180 days and include commitments associated with outright transactions, dollar rolls,
   and coupon swaps.
3. This amount is included in other Federal Reserve assets in table 1 and in other assets in table 9 and table 10.

 
4. Information on Principal Accounts of Maiden Lane LLC
Millions of dollars
                                                                                                                        Wednesday   
Account name                                                                                                            Jan 5, 2011 
 
Net portfolio holdings of Maiden Lane LLC (1)                                                                             27,009

Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2)                                 25,228
Accrued interest payable to the Federal Reserve Bank of New York (2)                                                         620
Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3)                              1,316
 
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, 2010. Any assets purchased after this valuation date are initially recorded at cost until their estimated fair
   value as of the purchase date becomes available.
2. Book value. This amount was eliminated when preparing the Federal Reserve Bank of New York's statement of condition consistent
   with consolidation under generally accepted accounting principles. Refer to the note on consolidation accompanying table 10.
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 9 and table 10.

Note: On June 26, 2008, the Federal Reserve Bank of New York (FRBNY) extended credit to Maiden Lane LLC under the authority of
section 13(3) of the Federal Reserve Act. This limited liability company was formed to acquire certain assets of Bear Stearns and to
manage those assets through time to maximize repayment of the credit extended and to minimize disruption to financial markets.
Payments by Maiden Lane LLC from the proceeds of the net portfolio holdings will be made in the following order: operating expenses
of the LLC, principal due to the FRBNY, interest due to the FRBNY, principal due to JPMorgan Chase & Co., and interest due to
JPMorgan Chase & Co. Any remaining funds will be paid to the FRBNY.

 
5. Information on Principal Accounts of Maiden Lane II LLC
Millions of dollars
                                                                                                                        Wednesday   
Account name                                                                                                            Jan 5, 2011 
 
Net portfolio holdings of Maiden Lane II LLC (1)                                                                          15,942

Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2)                                 12,777
Accrued interest payable to the Federal Reserve Bank of New York (2)                                                         454
Deferred payment and accrued interest payable to subsidiaries of American International Group, Inc. (3)                    1,072
 
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, 2010. Any assets purchased after this valuation date are initially recorded at cost until their estimated fair
   value as of the purchase date becomes available.
2. Book value. This amount was eliminated when preparing the Federal Reserve Bank of New York's statement of condition consistent
   with consolidation under generally accepted accounting principles. Refer to the note on consolidation accompanying table 10.
3. Book value. The deferred payment represents the portion of the proceeds of the net portfolio holdings due to subsidiaries of
   American International Group, Inc. in accordance with the asset purchase agreement. The fair value of this payment and accrued
   interest payable are included in other liabilities and capital in table 1 and in other liabilities and accrued dividends in table
   9 and table 10.

Note: On December 12, 2008, the Federal Reserve Bank of New York (FRBNY) began extending credit to Maiden Lane II LLC under the
authority of section 13(3) of the Federal Reserve Act. This limited liability company was formed to purchase residential
mortgage-backed securities from the U.S. securities lending reinvestment portfolio of subsidiaries of American International Group,
Inc. (AIG subsidiaries). Payments by Maiden Lane II LLC from the proceeds of the net portfolio holdings will be made in the
following order: operating expenses of Maiden Lane II LLC, principal due to the FRBNY, interest due to the FRBNY, and deferred
payment and interest due to AIG subsidiaries. Any remaining funds will be shared by the FRBNY and AIG subsidiaries.

 
6. Information on Principal Accounts of Maiden Lane III LLC
Millions of dollars
                                                                                                                        Wednesday   
Account name                                                                                                            Jan 5, 2011 
 
Net portfolio holdings of Maiden Lane III LLC (1)                                                                         23,202

Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2)                                 13,526
Accrued interest payable to the Federal Reserve Bank of New York (2)                                                         548
Outstanding principal amount and accrued interest on loan payable to American International Group, Inc. (3)                5,368
 
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, 2010. Any assets purchased after this valuation date are initially recorded at cost until their estimated fair
   value as of the purchase date becomes available.
2. Book value. This amount was eliminated when preparing the Federal Reserve Bank of New York's statement of condition consistent
   with consolidation under generally accepted accounting principles. Refer to the note on consolidation accompanying table 10.
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 9 and table 10.

Note: On November 25, 2008, the Federal Reserve Bank of New York (FRBNY) began extending credit to Maiden Lane III LLC under the
authority of section 13(3) of the Federal Reserve Act. This limited liability company was formed to purchase multi-sector
collateralized debt obligations (CDOs) on which the Financial Products group of American International Group, Inc. (AIG) has written
credit default swap (CDS) contracts. In connection with the purchase of CDOs, the CDS counterparties will concurrently unwind the
related CDS transactions. Payments by Maiden Lane III LLC from the proceeds of the net portfolio holdings will be made in the
following order: operating expenses of Maiden Lane III LLC, principal due to the FRBNY, interest due to the FRBNY, principal due to
AIG, and interest due to AIG. Any remaining funds will be shared by the FRBNY and AIG.

 
7. Information on Principal Accounts of TALF LLC
Millions of dollars
                                                                                                                        Wednesday   
Account name                                                                                                            Jan 5, 2011 
 
Asset-backed securities holdings (1)                                                                                           0
Other investments, net                                                                                                       665
Net portfolio holdings of TALF LLC                                                                                           665

Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2)                                      0
Accrued interest payable to the Federal Reserve Bank of New York (2)                                                           0
Funding provided by U.S. Treasury to TALF LLC, including accrued interest payable (3)                                        106
 
1. Fair value. Fair value reflects an estimate of the price that would be received upon selling an asset if the transaction were to
   be conducted in an orderly market on the measurement date.
2. Book value. This amount was eliminated when preparing the Federal Reserve Bank of New York's statement of condition consistent
   with consolidation under generally accepted accounting principles. Refer to the note on consolidation accompanying table 10.
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 9 and table 10.

Note: On November 25, 2008, the Federal Reserve announced the creation of the Term Asset-Backed Securities Loan Facility (TALF)
under the authority of section 13(3) of the Federal Reserve Act. The TALF is a facility under which the Federal Reserve Bank of New
York (FRBNY) extends loans with a term of up to five years to holders of eligible asset-backed securities. The TALF is intended to
assist financial markets in accommodating the credit needs of consumers and businesses by facilitating the issuance of asset-backed
securities collateralized by a variety of consumer and business loans. The loans provided through the TALF to eligible borrowers are
non-recourse, meaning that the obligation of the borrower can be discharged by surrendering the collateral to the FRBNY. The loans
are extended for the market value of the security less an amount known as a haircut. As a result, the borrower bears the initial
risk of a decline in the value of the security.

TALF LLC is a limited liability company formed to purchase and manage any asset-backed securities received by the FRBNY in
connection with the decision of a borrower not to repay a TALF loan. TALF LLC has committed, for a fee, to purchase all asset-backed
securities received by the FRBNY in conjunction with a TALF loan at a price equal to the TALF loan plus accrued but unpaid interest.
Losses on asset-backed securities held by TALF LLC will be offset in the following order: by the commitment fees collected by TALF
LLC, by the interest received on investments of TALF LLC, by up to $4.3 billion in subordinated debt funding provided by the U.S.
Treasury, and finally, by senior debt funding provided by the FRBNY. Payments by TALF LLC from the proceeds of its net portfolio
holdings will be made in the following order: operating expenses of TALF LLC, principal due to the FRBNY, principal due to the U.S.
Treasury, interest due to the FRBNY, and interest due to the U.S. Treasury. Any remaining funds will be shared by the FRBNY and the
U.S. Treasury.

 
8. Supplemental Information on the Federal Reserve Bank of New York's Preferred Interests in
AIA Aurora LLC and ALICO Holdings LLC
Millions of dollars
                                                                                                                        Wednesday   
Account name                                                                                                            Jan 5, 2011 
 
Preferred interests in AIA Aurora LLC and ALICO Holdings LLC (1)                                                          26,385
Accrued dividends on preferred interests in AIA Aurora LLC and ALICO Holdings LLC (2)                                         18

Preferred interests in AIA Aurora LLC (1)                                                                                 16,887
Accrued dividends on preferred interests in AIA Aurora LLC (2)                                                                12

Preferred interests in ALICO Holdings LLC (1)                                                                              9,499
Accrued dividends on preferred interests in ALICO Holdings LLC (2)                                                             7
 
Note: Components may not sum to totals because of rounding.

1. Book value.
2. This amount is included in other Federal Reserve assets in table 1 and in other assets in table 9 and table 10.

Note on preferred interests:

In conjunction with the restructuring of the government's assistance to American International Group, Inc. (AIG) announced March 2,
2009, the outstanding balance and amount available of revolving credit provided to AIG by the FRBNY has been reduced in exchange for
preferred interests in two special purpose vehicles, AIA Aurora LLC and ALICO Holdings LLC. These two limited liability companies
were created to directly or indirectly hold all of the outstanding common stock of American International Assurance Company Ltd.
(AIA) and American Life Insurance Company (ALICO), two life insurance subsidiaries of AIG. AIG will retain control of AIA Aurora LLC
and ALICO Holdings LLC, and the FRBNY will have certain consent, disposition, and conversion rights with respect to its preferred
interests.

Dividends accrue as a percentage of the FRBNY's preferred interests in AIA Aurora LLC and ALICO Holdings LLC. On a quarterly basis,
the accrued dividends are capitalized and added to the FRBNY's preferred interests in AIA Aurora LLC and ALICO Holdings LLC.

 
9. Consolidated Statement of Condition of All Federal Reserve Banks
Millions of dollars
                                                       Eliminations from  Wednesday         Change since       
                                                        consolidation    Jan 5, 2011   Wednesday    Wednesday  
Assets, liabilities, and capital                                                      Dec 29, 2010  Jan 6, 2010
 
Assets
  Gold certificate account                                                  11,037             0            0
  Special drawing rights certificate account                                 5,200             0            0
  Coin                                                                       2,191    +       27   +      127
  Securities, repurchase agreements, term auction
     credit, and other loans                                             2,215,201    +   14,414   +  204,252
    Securities held outright (1)                                         2,170,586    +   14,883   +  325,375
      U.S. Treasury securities                                           1,030,985    +   14,883   +  254,390
        Bills (2)                                                           18,423             0            0
        Notes and bonds, nominal (2)                                       956,554    +   13,177   +  248,905
        Notes and bonds, inflation-indexed (2)                              49,743    +    1,618   +    5,100
        Inflation compensation (3)                                           6,265    +       87   +      384
      Federal agency debt securities (2)                                   147,460             0   -   12,419
      Mortgage-backed securities (4)                                       992,141             0   +   83,404
    Repurchase agreements (5)                                                    0             0            0
    Term auction credit                                                          0             0   -   75,918
    Other loans                                                             44,615    -      469   -   45,206
  Net portfolio holdings of Commercial Paper
     Funding Facility LLC (6)                                                    0             0   -   14,076
  Net portfolio holdings of Maiden Lane LLC (7)                             27,009    +       35   +      273
  Net portfolio holdings of Maiden Lane II LLC (8)                          15,942    -      255   +      280
  Net portfolio holdings of Maiden Lane III LLC (9)                         23,202    +       60   +      445
  Net portfolio holdings of TALF LLC (10)                                      665             0   +      367
  Preferred interests in AIA Aurora LLC and ALICO
     Holdings LLC (11)                                                      26,385    +      328   +    1,279
  Items in process of collection                             (98)              280    +       55   -      442
  Bank premises                                                              2,219    -       10   -       21
  Central bank liquidity swaps (12)                                             75             0   -   10,197
  Other assets (13)                                                        109,566    +      859   +   18,186

Total assets                                                 (98)        2,438,972    +   15,515   +  200,473
 
Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.

 
9. Consolidated Statement of Condition of All Federal Reserve Banks (continued)
Millions of dollars
                                                       Eliminations from  Wednesday         Change since       
                                                        consolidation    Jan 5, 2011   Wednesday    Wednesday  
Assets, liabilities, and capital                                                      Dec 29, 2010  Jan 6, 2010
 
Liabilities
  Federal Reserve notes, net of F.R. Bank holdings                         940,305    -    3,444   +   55,856
  Reverse repurchase agreements (14)                                        57,555    -    1,691   -   10,017
  Deposits                                                    (0)        1,342,661    +   23,906   +  123,997
    Term deposits held by depository institutions                                0    -    5,113            0
    Other deposits held by depository institutions                       1,033,169    +   12,443   +    8,671
    U.S. Treasury, general account                                         105,713    +   16,808   -   60,842
    U.S. Treasury, supplementary financing account                         199,964    +        1   +  194,963
    Foreign official                                                         3,430    -      240   +      281
    Other                                                     (0)              385    +        7   -   19,076
  Deferred availability cash items                           (98)            2,484    +      634   -    1,249
  Other liabilities and accrued dividends (15)                              42,918    -      338   +   30,985

Total liabilities                                            (98)        2,385,924    +   19,069   +  199,573

Capital accounts
  Capital paid in                                                           26,524    -        1   +      873
  Surplus                                                                   26,524    +      573   +    1,358
  Other capital accounts                                                         0    -    4,126   -    1,330

Total capital                                                               53,048    -    3,554   +      900
 
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. Current face value of the securities, which is the
   remaining principal balance of the underlying mortgages.
5. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities.
6. Includes the book value of the commercial paper, net of amortized costs and related fees, and other
   investments held by the Commercial Paper Funding Facility LLC.
7. Refer to table 4 and the note on consolidation accompanying table 10.
8. Refer to table 5 and the note on consolidation accompanying table 10.
9.  Refer to table 6 and the note on consolidation accompanying table 10.
10. Refer to table 7 and the note on consolidation accompanying table 10.
11. Refer to table 8.
12. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when
    the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange
    rate used when the foreign currency was acquired from the foreign central bank.
13. Includes other assets denominated in foreign currencies, which are revalued daily at market exchange rates,
    accrued dividends on the Federal Reserve Bank of New York's (FRBNY) preferred interests in AIA Aurora LLC
    and ALICO Holdings LLC, and the fair value adjustment to credit extended by the FRBNY to eligible borrowers
    through the Term Asset-Backed Securities Loan Facility.
14. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt
    securities, and mortgage-backed securities.
15. Includes the liabilities of Maiden Lane LLC, Maiden Lane II LLC, Maiden Lane III LLC, and TALF LLC to
    entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to
    the portfolio holdings of these LLCs. Refer to table 4 through table 7 and the note on consolidation
    accompanying table 10. Also includes funds from American International Group, Inc. asset dispositions, held
    as agent. Also includes the liability for interest on Federal Reserve notes due to U.S. Treasury. Refer to
    table 10.


 
10. Statement of Condition of Each Federal Reserve Bank,    January 5, 2011
Millions of dollars
                                               Total      Boston     New York   Philadelphia Cleveland   Richmond     Atlanta     Chicago    St. Louis  Minneapolis   Kansas      Dallas        San    
Assets, liabilities, and capital                                                                                                                                       City                  Francisco 
 
Assets
  Gold certificate account                      11,037         369       4,038         404         463         846       1,385         887         324         203         296         652       1,170
  Special drawing rights certificate acct.       5,200         196       1,818         210         237         412         654         424         150          90         153         282         574
  Coin                                           2,191          46          70         175         165         355         188         340          36          60         161         240         356
  Securities, repurchase agreements,
     term auction credit, and other
     loans                                   2,215,201      54,930     930,308      50,689      73,747     247,206     205,404     163,634      55,911      29,715      74,471      91,144     238,040
    Securities held outright (1)             2,170,586      54,930     885,714      50,689      73,747     247,206     205,397     163,633      55,910      29,715      74,460      91,144     238,040
      U.S. Treasury securities               1,030,985      26,091     420,696      24,076      35,028     117,418      97,560      77,722      26,556      14,114      35,367      43,292     113,064
        Bills (2)                               18,423         466       7,517         430         626       2,098       1,743       1,389         475         252         632         774       2,020
        Notes and bonds (3)                  1,012,562      25,625     413,179      23,646      34,403     115,320      95,816      76,333      26,082      13,862      34,735      42,518     111,044
      Federal agency debt securities (2)       147,460       3,732      60,171       3,444       5,010      16,794      13,954      11,116       3,798       2,019       5,058       6,192      16,171
      Mortgage-backed securities (4)           992,141      25,108     404,846      23,169      33,709     112,994      93,884      74,794      25,556      13,582      34,034      41,660     108,804
    Repurchase agreements (5)                        0           0           0           0           0           0           0           0           0           0           0           0           0
    Term auction credit                              0           0           0           0           0           0           0           0           0           0           0           0           0
    Other loans                                 44,615           0      44,595           0           0           0           7           1           1           0          11           0           0
  Net portfolio holdings of Commercial
     Paper Funding Facility LLC (6)                  0           0           0           0           0           0           0           0           0           0           0           0           0
  Net portfolio holdings of Maiden
     Lane LLC (7)                               27,009           0      27,009           0           0           0           0           0           0           0           0           0           0
  Net portfolio holdings of Maiden
     Lane II LLC (8)                            15,942           0      15,942           0           0           0           0           0           0           0           0           0           0
  Net portfolio holdings of Maiden
     Lane III LLC (9)                           23,202           0      23,202           0           0           0           0           0           0           0           0           0           0
  Net portfolio holdings of TALF LLC (10)          665           0         665           0           0           0           0           0           0           0           0           0           0
  Preferred interests in AIA Aurora LLC
     and ALICO Holdings LLC (11)                26,385           0      26,385           0           0           0           0           0           0           0           0           0           0
  Items in process of collection                   377           7           0          47          73          15          99          65         -34          31          26          26          22
  Bank premises                                  2,219         126         255          68         140         239         218         208         136         107         265         245         213
  Central bank liquidity swaps (12)                 75           3          22           8           6          21           5           2           1           2           1           1           5
  Other assets (13)                            109,566       3,087      41,596       4,771       4,759      16,712       9,518       6,911       2,420       1,886       3,091       3,969      10,847
  Interdistrict settlement account                   0   -   3,354   + 205,476   +  12,929   -  18,973   -  22,076   -  47,731   -  35,160   -  17,054   -   7,567   -  13,898   -   5,267   -  47,325

Total assets                                 2,439,070      55,411   1,276,788      69,300      60,616     243,731     169,739     137,309      41,890      24,526      64,566      91,291     203,902
 
Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.

 
10. Statement of Condition of Each Federal Reserve Bank,    January 5, 2011 (continued)
Millions of dollars
                                               Total      Boston     New York   Philadelphia Cleveland   Richmond     Atlanta     Chicago    St. Louis  Minneapolis   Kansas      Dallas        San    
Assets, liabilities, and capital                                                                                                                                       City                  Francisco 
 
Liabilities
  Federal Reserve notes outstanding          1,120,748      41,109     383,269      45,475      45,934      90,094     141,227      86,382      32,428      19,927      33,190      75,842     125,872
    Less: Notes held by F.R. Banks             180,443       4,727      64,067       4,770       7,859      13,082      20,778      12,148       4,435       5,768       3,652      11,946      27,211
      Federal Reserve notes, net               940,305      36,382     319,203      40,705      38,075      77,012     120,449      74,233      27,993      14,159      29,538      63,895      98,661
  Reverse repurchase agreements (14)            57,555       1,457      23,486       1,344       1,955       6,555       5,446       4,339       1,483         788       1,974       2,417       6,312
  Deposits                                   1,342,661      15,465     879,283      21,667      15,928     148,585      40,131      56,727      11,708       7,416      32,213      23,794      89,743
    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                          1,033,169      15,457     569,982      21,662      15,924     148,533      40,127      56,700      11,652       7,412      32,209      23,794      89,717
    U.S. Treasury, general account             105,713           0     105,713           0           0           0           0           0           0           0           0           0           0
    U.S. Treasury, supplementary
       financing account                       199,964           0     199,964           0           0           0           0           0           0           0           0           0           0
    Foreign official                             3,430           1       3,401           4           3          11           2           1           0           1           0           1           3
    Other                                          385           7         222           0           2          41           1          27          56           3           4           0          23
  Deferred availability cash items               2,582          92           0         303         505         115         134         208          78         407         142         113         486
  Interest on Federal Reserve notes due
     to U.S. Treasury (15)                         613           7         379         -36          -4         -31          69          65          22          -1          13          51          80
  Other liabilities and accrued
     dividends (16)                             42,305         176      39,074         180         222         618         470         393         176         119         171         247         460

Total liabilities                            2,386,021      53,579   1,261,423      64,162      56,681     232,853     166,699     135,965      41,460      22,887      64,052      90,518     195,742

Capital
  Capital paid in                               26,524         916       7,682       2,569       1,968       5,439       1,520         672         215         819         257         387       4,080
  Surplus                                       26,524         916       7,682       2,569       1,968       5,439       1,520         672         215         819         257         387       4,080
  Other capital                                      0           0           0           0           0           0           0           0           0           0           0           0           0

Total liabilities and capital                2,439,070      55,411   1,276,788      69,300      60,616     243,731     169,739     137,309      41,890      24,526      64,566      91,291     203,902
 
Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.

10. Statement of Condition of Each Federal Reserve Bank,    January 5, 2011 (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. Current face value of the securities, which is the remaining principal balance of the underlying mortgages.
5. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities.
6. Includes the book value of the commercial paper, net of amortized costs and related fees, and other investments held by the Commercial Paper Funding Facility LLC.
7. Refer to table 4 and the note on consolidation below.
8. Refer to table 5 and the note on consolidation below.
9.  Refer to table 6 and the note on consolidation below.
10. Refer to table 7 and the note on consolidation below.
11. Refer to table 8.
12. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals
    the market exchange rate used when the foreign currency was acquired from the foreign central bank.
13. Includes other assets denominated in foreign currencies, which are revalued daily at market exchange rates, accrued dividends on the Federal Reserve Bank of New York's (FRBNY) preferred interests
    in AIA Aurora LLC and ALICO Holdings LLC, and the fair value adjustment to credit extended by the FRBNY to eligible borrowers through the Term Asset-Backed Securities Loan Facility.
14. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities.
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.
16. Includes the liabilities of Maiden Lane LLC, Maiden Lane II LLC, Maiden Lane III LLC, and TALF LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have
    recourse only to the portfolio holdings of these LLCs. Refer to table 4 through table 7 and the note on consolidation below. Also includes funds from American International Group, Inc. asset
    dispositions, held as agent.


Note on consolidation:

The Federal Reserve Bank of New York (FRBNY) has extended loans to several limited liability companies under the authority of section 13(3) of the Federal Reserve Act. On June 26, 2008, a loan was
extended to Maiden Lane LLC, which was formed to acquire certain assets of Bear Stearns. On November 25, 2008, a loan was extended to Maiden Lane III LLC, which was formed to purchase multi-sector
collateralized debt obligations on which the Financial Products group of the American International Group, Inc. has written credit default swap contracts. On December 12, 2008, a loan was extended to
Maiden Lane II LLC, which was formed to purchase residential mortgage-backed securities from the U.S. securities lending reinvestment portfolio of subsidiaries of American International Group, Inc.
On November 25, 2008, the Federal Reserve Board authorized the FRBNY to extend credit to TALF LLC, which was formed to purchase and manage any asset-backed securities received by the FRBNY in
connection with the decision of a borrower not to repay a loan extended under the Term Asset-Backed Securities Loan Facility.

The FRBNY is the primary beneficiary of TALF LLC, because of the two beneficiaries of the LLC, the FRBNY and the U.S. Treasury, the FRBNY is primarily responsible for directing the financial
activities of TALF LLC. The FRBNY is the primary beneficiary of the other LLCs cited above because it will receive a majority of any residual returns of the LLCs and absorb a majority of any residual
losses of the LLCs. Consistent with generally accepted accounting principles, the assets and liabilities of these LLCs have been consolidated with the assets and liabilities of the FRBNY in the
preparation of the statements of condition shown on this release. As a consequence of the consolidation, the extensions of credit from the FRBNY to the LLCs are eliminated, the net assets of the LLCs
appear as assets on the previous page (and in table 1 and table 9), and the liabilities of the LLCs to entities other than the FRBNY, including those with recourse only to the portfolio holdings of
the LLCs, are included in other liabilities in this table (and table 1 and table 9).

 
11. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts
Millions of dollars
                                                                                            Wednesday   
Federal Reserve notes and collateral                                                        Jan 5, 2011 
 
Federal Reserve notes outstanding                                                          1,120,748
  Less: Notes held by F.R. Banks not subject to collateralization                            180,443
    Federal Reserve notes to be collateralized                                               940,305
Collateral held against Federal Reserve notes                                                940,305
  Gold certificate account                                                                    11,037
  Special drawing rights certificate account                                                   5,200
  U.S. Treasury, agency debt, and mortgage-backed securities pledged (1,2)                   924,068
  Other assets pledged                                                                             0
Memo:
Total U.S. Treasury, agency debt, and mortgage-backed securities (1,2)                     2,170,586
  Less: Face value of securities under reverse repurchase agreements                          51,371
    U.S. Treasury, agency debt, and mortgage-backed securities eligible to be pledged      2,119,215
 
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.