Bank of America Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Federal Funds Sold or Purchased, Securities Financing Agreements and Short-term Borrowings

Federal Funds Sold or Purchased, Securities Financing Agreements and Short-term Borrowings

9 Months Ended

Sep. 30, 2014

Federal Funds Sold, Securities Borrowed or Purchased Under Agreements to Resell and Short-term Borrowings [Abstract]

Federal Funds Sold or Purchased, Securities Financing Agreements and Short-term Borrowings

NOTE 9 – Federal Funds Sold or Purchased, Securities Financing Agreements and Short-term Borrowings

The table below presents federal funds sold or purchased, securities financing agreements, which include securities borrowed or purchased under agreements to resell and securities loaned or sold under agreements to repurchase, and short-term borrowings.



	Three Months Ended September 30									Nine Months Ended September 30
	Amount					Rate				Amount					Rate
(Dollars in millions)	2014		2013			2014		2013		2014		2013			2014		2013
Average during period
Federal funds sold	$	2	$	10		1.01	%	0.74	%	$	3	$	8		0.88	%	0.68	%
Securities borrowed or purchased under agreements to resell	223,976		223,424			0.42		0.52		223,998		231,371			0.48		0.53
Total	$	223,978	$	223,434		0.42		0.52		$	224,001	$	231,379		0.48		0.53

Federal funds purchased	$	146	$	183		0.05	%	0.03	%	$	162	$	188		0.05	%	0.06	%
Securities loaned or sold under agreements to repurchase	216,099		235,022			0.90		0.82		214,405		268,549			1.01		0.80
Short-term borrowings	38,866		44,220			1.02		1.76		45,219		42,749			1.01		2.01
Total	$	255,111	$	279,425		0.92		0.97		$	259,786	$	311,486		1.01		0.96

Maximum month-end balance during period
Federal funds sold	$	—	$	35						$	12	$	35
Securities borrowed or purchased under agreements to resell	231,077		220,985							240,110		249,791

Federal funds purchased	$	156	$	166						$	213	$	195
Securities loaned or sold under agreements to repurchase	226,158		239,556							239,984		319,608
Short-term borrowings	40,403		44,291							51,409		46,470

	September 30, 2014									December 31, 2013
	Amount		Rate							Amount		Rate
Period-end
Securities borrowed or purchased under agreements to resell	$	223,310	0.44		%					$	190,328	0.60		%
Total	$	223,310	0.44							$	190,328	0.60

Federal funds purchased	$	150	—		%					$	186	—		%
Securities loaned or sold under agreements to repurchase	217,775		0.92							197,920		0.92
Short-term borrowings	33,275		1.14							45,999		1.55
Total	$	251,200	0.95							$	244,105	1.03

Offsetting of Securities Financing Agreements

Substantially all of the Corporation's repurchase and resale activities are transacted under legally enforceable master repurchase agreements that give the Corporation, in the event of default by the counterparty, the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Corporation offsets repurchase and resale transactions with the same counterparty on the Consolidated Balance Sheet where it has such a legally enforceable master netting agreement and the transactions have the same maturity date.

Substantially all securities borrowing and lending activities are transacted under legally enforceable master securities lending agreements that give the Corporation, in the event of default by the counterparty, the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Corporation offsets securities borrowing and lending transactions with the same counterparty on the Consolidated Balance Sheet where it has such a legally enforceable master netting agreement and the transactions have the same maturity date.

The Securities Financing Agreements table presents securities financing agreements included on the Consolidated Balance Sheet in federal funds sold and securities borrowed or purchased under agreements to resell, and in federal funds purchased and securities loaned or sold under agreements to repurchase at September 30, 2014 and December 31, 2013. Balances are presented on a gross basis, prior to the application of counterparty netting. Gross assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements. For more information on the offsetting of derivatives, see Note 2 – Derivatives.

The "Other" amount in the Securities Financing Agreements table, which is included on the Consolidated Balance Sheet in accrued expenses and other liabilities, relates to transactions where the Corporation acts as the lender in a securities lending agreement and receives securities that can be pledged or sold as collateral. In these transactions, the Corporation recognizes an asset at fair value, representing the securities received, and a liability, representing the obligation to return those securities.

Gross assets and liabilities include activity where uncertainty exists as to the enforceability of certain master netting agreements under bankruptcy laws in some countries or industries and, accordingly, these are reported on a gross basis.

The column titled "Financial Instruments" in the Securities Financing Agreements table includes securities collateral received or pledged under repurchase or securities lending agreements where there is a legally enforceable master netting agreement. These amounts are not offset on the Consolidated Balance Sheet, but are shown as a reduction to the net balance sheet amount in this table to derive a net asset or liability. Securities collateral received or pledged where the legal enforceability of the master netting agreements is not certain is not included.



Securities Financing Agreements
	September 30, 2014
(Dollars in millions)	Gross Assets/Liabilities		Amounts Offset			Net Balance Sheet Amount		Financial Instruments			Net Assets/Liabilities
Securities borrowed or purchased under agreements to resell	$	335,942	$	(112,632	)	$	223,310	$	(168,968	)	$	54,342

Securities loaned or sold under agreements to repurchase	$	330,407	$	(112,632	)	$	217,775	$	(176,875	)	$	40,900
Other	10,649		—			10,649		(10,649		)	—
Total	$	341,056	$	(112,632	)	$	228,424	$	(187,524	)	$	40,900

	December 31, 2013
Securities borrowed or purchased under agreements to resell	$	272,296	$	(81,968	)	$	190,328	$	(157,132	)	$	33,196

Securities loaned or sold under agreements to repurchase	$	279,888	$	(81,968	)	$	197,920	$	(160,111	)	$	37,809
Other	10,871		—			10,871		(10,871		)	—
Total	$	290,759	$	(81,968	)	$	208,791	$	(170,982	)	$	37,809