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`For Release at
4:30 P.M. Eastern time
  September 18, 2008


On September 16, 2008, the Federal Reserve announced that it would extend credit to the American
International Group (AIG) under the authority of section 13(3) of the Federal Reserve Act.  This secured
lending will assist AIG in meeting its obligations as they come due and facilitate a process under which
AIG will sell certain of its businesses in an orderly manner, with the least possible disruption to the
overall economy.  The Board's H.4.1 statistical release, "Factors Affecting Reserve Balances of Depository
Institutions and Condition Statement of Federal Reserve Banks" will report this lending in "Other credit
extensions" in table 1 and in "Other loans" in table 3, table 4, and table 5.


1


FEDERAL RESERVE statistical release

H.4.1
Factors Affecting Reserve Balances of Depository Institutions and
Condition Statement of Federal Reserve Banks
                                                                                         September 18, 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                                    Sep 17, 2008 Sep 10, 2008 Sep 19, 2007 Sep 17, 2008

Reserve Bank credit                                         931,340    +  43,066    +  78,241      978,246
  Securities held outright                                  479,818    +      56    - 299,818      479,839       
    U.S. Treasury (1)                                       479,818    +      56    - 299,818      479,839
      Bills (2)                                              21,740            0    - 245,279       21,740
      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)                              6,515    +      56    +   1,792        6,536
    Federal agency (2)                                            0            0            0            0      
  Repurchase agreements (4)                                 124,500    +  13,679    +  94,321       98,000
  Term auction credit                                       150,000            0    + 150,000      150,000  
  Other loans                                                47,969    +  28,078    +  45,548      121,294
    Primary credit                                           21,598    +   1,802    +  19,419       33,401
    Secondary credit                                              8    +       8    +       8           18
    Seasonal credit                                              96    +       1    -     145           95
    Primary dealer credit facility                           20,268    +  20,268    +  20,268       59,780
    Other credit extensions                                   6,000    +   6,000    +   6,000       28,000
  Net portfolio holdings of Maiden Lane LLC (5)              29,333    +      40    +  29,333       29,367
  Float                                                      -1,072    -      16    -   1,691       -1,707
  Other Federal Reserve assets                              100,791    +   1,228    +  60,547      101,453
Gold stock                                                   11,041            0            0       11,041
Special drawing rights certificate account                    2,200            0            0        2,200
Treasury currency outstanding (6)                            38,760    +      14    +     143       38,760
       
Total factors supplying reserve funds                       983,341    +  43,080    +  78,384    1,030,247
                                                                   
Currency in circulation (6)                                 832,386    -   2,162    +  22,493      833,129
Reverse repurchase agreements (7)                            45,743    +   3,053    +  10,008       46,633
  Foreign official and international accounts                45,743    +   3,053    +  10,008       46,633
  Dealers                                                         0            0            0            0
Treasury cash holdings                                          267    -       8    -      72          261
Deposits with F.R. Banks, other than reserve balances        14,366    +   2,115    +   1,935       24,303       
  U.S. Treasury, general account                              4,941    +     218    -     475        5,512
  Foreign official                                              168    +       7    +      63          102
  Service-related                                             7,360    +     274    +     708        7,360
    Required clearing balances                                7,360    +     274    +     708        7,360
    Adjustments to compensate for float                           0            0            0            0
  Other                                                       1,897    +   1,616    +   1,639       11,330
Other liabilities and capital (8)                            43,583    +   1,054    +   2,686       44,184

Total factors, other than reserve balances,                                        
   absorbing reserve funds                                  936,345    +   4,053    +  37,051      948,511

Reserve balances with Federal Reserve Banks                  46,996    +  39,027    +  41,333       81,737
                                                                
Note: Components may not sum to totals because of rounding.

1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer
   to table 1A.  
2. Face value of the securities. 
3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed
   securities. 
4. Cash value of agreements.
5. Fair value.  Refer to table 2 and the note on consolidation accompanying table 5.
6. Estimated.
7. Cash value of agreements, which are collateralized by U.S. Treasury securities.
8. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New
   York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC.
   Refer to table 2 and the note on consolidation accompanying table 5.

Sources: Federal Reserve Banks and the U.S. Department of the Treasury.


1A. Memorandum Items, September 17, 2008 
Millions of dollars
                                                                   Averages of daily figures
Memorandum item                                           Week ended   Change from week ended     Wednesday
                                                         Sep 17, 2008 Sep 10, 2008 Sep 19, 2007 Sep 17, 2008

Marketable securities held in custody for foreign
      official and international accounts (1)             2,408,855    +  13,508    + 421,356    2,412,943
  U.S. Treasury                                           1,449,613    +   9,951    + 238,616    1,451,833
  Federal agency                                            959,242    +   3,557    + 182,740      961,111
Securities lent to dealers                                  125,674    +   7,611    + 123,497      127,325   
  Overnight facility (2)                                      8,404    +   6,239    +   6,227        9,826
  Term facility (3,4)                                       117,270    +   1,371    + 117,270      117,499

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.
4. On September 17, 2008, option contracts on draws on the Term Securities Lending Facility totaling 
   $    49,998 million were outstanding.  The exercise date for the options is September 24, 2008, and the 
   draws have a term of September 25, 2008 through    October 2, 2008.


2. Information on Principal Accounts of Maiden Lane LLC
Millions of dollars
                                                                                                  Wednesday
Account name                                                                                    Sep 17, 2008
         
Net portfolio holdings of Maiden Lane LLC (1)                                                       29,367

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)                                   149
Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3)        1,168
 
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, September 17, 2008
Millions of dollars
                                                              U.S. Treasury                       Reverse
Remaining maturity                  Term        Other         securities (2)       Repurchase   repurchase
                                  auction       loans                  Weekly      agreements   agreements
                                   credit        (1)       Holdings    changes         (3)          (3)    
Within 15 days                     75,000      101,237       16,358    +   1,403       58,000       46,633
16 days to 90 days                 75,000       20,057       30,001    -   1,548       40,000            0
91 days to 1 year                     ---            0       68,101    -   1,171          ---          ---
Over 1 year to 5 years                ---          ---      170,676    -     131          ---          ---
Over 5 years to 10 years              ---          ---       93,341    +   1,478          ---          ---
Over 10 years                         ---          ---      101,361    +      24          ---          ---
                             
All                               150,000      121,294      479,839    +      57       98,000       46,633

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 Sep 17, 2008     Sep 10, 2008     Sep 19, 2007

Assets
Gold certificate account                                           11,037                0                0
Special drawing rights certificate account                          2,200                0                0
Coin                                                                1,468        +      23        +     378
Securities, repurchase agreements, term auction
      credit, and other loans                                     849,133        +  69,044        +  35,389
  Securities held outright                                        479,839        +      57        - 299,796
    U.S. Treasury (1)                                             479,839        +      57        - 299,796       
      Bills (2)                                                    21,740                0        - 245,279
      Notes and bonds, nominal (2)                                411,731                0        -  60,411
      Notes and bonds, inflation-indexed (2)                       39,832                0        +   4,079
      Inflation compensation (3)                                    6,536        +      56        +   1,814
    Federal agency (2)                                                  0                0                0
  Repurchase agreements (4)                                        98,000        -  28,750        +  65,250    
  Term auction credit                                             150,000                0        + 150,000
  Other loans                                                     121,294        +  97,738        + 119,935
Net portfolio holdings of Maiden Lane LLC (5)                      29,367        +      40        +  29,367
Items in process of collection                         (495)          908        -     524        -   2,374
Bank premises                                                       2,168        +       3        +      82
Other assets (6)                                                   99,289        +   2,765        +  61,143
     
      Total assets                                     (495)      995,570        +  71,352        + 123,984
                          
Liabilities
Federal Reserve notes, net of F.R. Bank holdings                  796,094        -   1,508        +  22,727
Reverse repurchase agreements (7)                                  46,633        +   2,337        +  10,408
Deposits                                                 (0)      106,045        +  67,750        +  87,827       
  Depository institutions                                          89,102        +  57,034        +  75,650
  U.S. Treasury, general account                                    5,512        +     100        +   1,057
  Foreign official                                                    102        -     420        +       4
  Other                                                  (0)       11,330        +  11,038        +  11,117
Deferred availability cash items                       (495)        2,614        -     111        -     800
Other liabilities and accrued dividends (8,9)                       2,849        +   2,010        -   3,184

      Total liabilities                                (495)      954,235        +  70,478        + 116,978
                          
Capital accounts
Capital paid in                                                    20,211        +       9        +   3,243
Surplus                                                            18,516        +       2        +   3,091
Other capital accounts                                              2,608        +     863        +     672

      Total capital                                                41,335        +     874        +   7,006

Note: Components may not sum to totals because of rounding.

1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer
   to table 1A.
2. Face value of the securities.
3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed
   securities. 
4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities.
5. Fair value.  Refer to table 2 and the note on consolidation accompanying table 5.
6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. 
7. Cash value of agreements, which are collateralized by U.S. Treasury securities.
8. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of
   foreign exchange commitments.
9. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New
   York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. 
   Refer to the note on consolidation accompanying table 5.


5. Statement of Condition of Each Federal Reserve Bank, September 17, 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                                           1,468         39         74        111        125        189        191        173         53         52        102        158        201
Securities, repurchase agreements, term
      auction credit, and other loans        849,133     28,548    400,772     27,119     31,211     68,036     65,470     55,468     22,874     11,894     25,841     27,863     84,038
  Securities held outright                   479,839     20,126    170,724     20,950     18,195     43,511     47,743     42,350     16,582      9,059     17,619     19,904     53,075
    U.S. Treasury (1)                        479,839     20,126    170,724     20,950     18,195     43,511     47,743     42,350     16,582      9,059     17,619     19,904     53,075
      Bills (2)                               21,740        912      7,735        949        824      1,971      2,163      1,919        751        410        798        902      2,405
      Notes and bonds (3)                    458,099     19,214    162,989     20,001     17,371     41,540     45,580     40,432     15,830      8,648     16,820     19,002     50,671
    Federal agency (2)                             0          0          0          0          0          0          0          0          0          0          0          0          0
  Repurchase agreements (4)                   98,000      4,110     34,868      4,279      3,716      8,886      9,751      8,649      3,387      1,850      3,598      4,065     10,840
  Term auction credit                        150,000      4,300     82,865      1,782      9,300     14,852      7,690      3,051      2,075         55      4,600      3,000     16,430     
  Other loans                                121,294         11    112,315        108          0        786        286      1,417        831        930         24        893      3,692
Net portfolio holdings of Maiden Lane 
      LLC (5)                                 29,367          0     29,367          0          0          0          0          0          0          0          0          0          0
Items in process of collection                 1,403         41          0        165        143        149        313        147         14         96        110        101        125
Bank premises                                  2,168        122        212         64        150        213        226        208        127        111        275        252        208
Other assets (6)                              99,289      5,374     27,139      8,933      6,462     24,232      7,823      4,874      1,287      1,890      1,392      2,241      7,643
Interdistrict settlement account                   0    +27,719    -72,014    + 4,838    - 1,898    - 5,769    +24,963    +15,520    + 4,261    + 2,658    + 1,986    + 4,171    - 6,435

      Total assets                           996,066     62,383    390,358     41,766     36,720     88,087    100,373     77,514     29,032     16,930     30,121     35,521     87,263

Note: Components may not sum to totals because of rounding.

1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A.
2. Face value of the securities.
3. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. 
4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities.
5. Fair value.  Refer to the note on consolidation below.
6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates.

Note on consolidation:
On June 26, 2008, the Federal Reserve Bank of New York extended a loan under the authority of section 13(3) of the Federal Reserve Act to Maiden Lane LLC, a limited liability company 
formed to acquire certain assets of Bear Stearns.  The Federal Reserve Bank of New York is the primary beneficiary of Maiden Lane LLC.  Consistent with generally accepted accounting 
principles, the assets and liabilities of Maiden Lane LLC have been consolidated with the assets and liabilities of the Federal Reserve Bank of New York in the preparation of the
statements of condition shown on this release.  As a consequence of the consolidation, the extension of credit from the Federal Reserve Bank of New York to Maiden Lane LLC is
eliminated, the net assets of Maiden Lane LLC appear as an asset in this table (and table 1 and table 4), and the liabilities of Maiden Lane LLC to entities other than the Federal 
Reserve Bank of New York, including those with recourse only to the portfolio holdings of Maiden Lane LLC, are included in other liabilities on the next page (and in table 1 and 
table 4). 


5. Statement of Condition of Each Federal Reserve Bank, September 17, 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             989,956     37,121    351,815     41,196     39,600     81,268    120,245     81,471     30,247     17,680     31,071     55,018    103,225
  Less: Notes held by F.R. Banks              193,862      5,611     54,248      7,007      8,715     13,167     29,605     14,624      3,713      2,985      3,883     23,204     27,100
    Federal Reserve notes, net                796,094     31,510    297,567     34,189     30,885     68,101     90,640     66,846     26,534     14,695     27,188     31,813     76,125
Reverse repurchase agreements (1)              46,633      1,956     16,592      2,036      1,768      4,229      4,640      4,116      1,611        880      1,712      1,934      5,158
Deposits                                      106,045     26,746     65,236        401        506      4,673      1,248      3,334        298        268        407        721      2,207
  Depository institutions                      89,102     26,689     48,455        397        502      4,601      1,243      3,332        286        268        405        720      2,204
  U.S. Treasury, general account                5,512          0      5,512          0          0          0          0          0          0          0          0          0          0
  Foreign official                                102          2         72          4          3         11          3          2          0          1          0          1          3
  Other                                        11,330         55     11,198          0          1         61          2          0         11          0          1          0          0
Deferred availability cash items                3,110        142          0        455        438        239        221        257         54        290        246        220        546
Other liabilities and accrued                 
  dividends (2,3)                               2,849        149        430        177        177        434        345        290        149        103        123        170        303
   
      Total liabilities                       954,731     60,503    379,824     37,256     33,775     77,676     97,094     74,844     28,646     16,237     29,676     34,859     84,340
                              
Capital                    
Capital paid in                                20,211        784      5,087      2,328      1,521      5,197      1,596      1,305        182        320        210        268      1,413
Surplus                                        18,516      1,050      4,678      1,814      1,291      4,999      1,426        815        180        355        193        364      1,351
Other capital                                   2,608         47        768        367        132        215        258        550         24         18         41         30        159

      Total liabilities and capital           996,066     62,383    390,358     41,766     36,720     88,087    100,373     77,514     29,032     16,930     30,121     35,521     87,263
                              
Note: Components may not sum to totals because of rounding.

1. Cash value of agreements, which are collateralized by U.S. Treasury securities.
2. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments.
3. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of
   Maiden Lane LLC.  Refer to the note on consolidation on the previous page.


6. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts
Millions of dollars

Federal Reserve notes and collateral                                                              Wednesday
                                                                                                Sep 17, 2008
              
Federal Reserve notes outstanding                                                                  989,956
  Less: Notes held by F.R. Banks not subject to collateralization                                  193,862
    Federal Reserve notes to be collateralized                                                     796,094 
Collateral held against Federal Reserve notes                                                      796,094
  Gold certificate account                                                                          11,037
  Special drawing rights certificate account                                                         2,200
  U.S. Treasury and agency securities pledged (1)                                                  533,638
  Other assets pledged                                                                             249,220

Memo:
Total U.S. Treasury and agency securities (1)                                                      577,839
  Less: Face value of securities under reverse repurchase agreements                                44,202
    U.S. Treasury and agency securities eligible to be pledged                                     533,638
   
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.`

Statistical releases

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