Quarterly report pursuant to Section 13 or 15(d)

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

v3.19.3
Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash
9 Months Ended
Sep. 30, 2019
Federal Funds Sold, Securities Borrowed or Purchased Under Agreements to Resell and Short-term Borrowings [Abstract]  
Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash
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. The Corporation elects to account for certain securities financing agreements and short-term borrowings under the fair value option. For more information on the fair value option, see Note 16 – Fair Value Option.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount
 
Rate
 
Amount
 
Rate
 
Amount
 
Rate
 
Amount
 
Rate
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2019
 
2018
 
2019
 
2018
Federal funds sold and securities borrowed or purchased under agreements to resell
 

 
 
 
 

 
 

 
 
 
 
 
 
 
 
Average during period
$
269,129

 
1.83
%
 
$
241,426

 
1.31
%
 
$
274,822

 
1.82
%
 
$
247,183

 
1.15
%
Maximum month-end balance during period
278,514

 
n/a

 
267,989

 
n/a

 
280,562

 
n/a

 
267,989

 
n/a

Federal funds purchased and securities loaned or sold under agreements to repurchase
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
Average during period
$
203,702

 
2.35
%
 
$
191,693

 
1.88
%
 
$
202,632

 
2.43
%
 
$
193,854

 
1.71
%
Maximum month-end balance during period
202,208

 
n/a

 
189,206

 
n/a

 
203,063

 
n/a

 
199,419

 
n/a

Short-term borrowings
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
Average during period
26,579

 
2.29

 
33,410

 
2.89

 
21,728

 
2.62

 
40,048

 
2.49

Maximum month-end balance during period
30,682

 
n/a

 
36,043

 
n/a

 
30,682

 
n/a

 
52,480

 
n/a

n/a = not applicable
Offsetting of Securities Financing Agreements
The Corporation enters into securities financing agreements to accommodate customers (also referred to as “matched-book transactions”), obtain securities to cover short positions and finance inventory positions. For more information on securities financing agreements and the offsetting of securities financing transactions, see Note 10 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2018 Annual Report on Form 10-K.
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, 2019 and December 31, 2018. 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 3 – Derivatives.
 
 
 
 
 
 
 
 
 
 
Securities Financing Agreements
 
 
 
 
 
 
 
 
 
 
 
Gross Assets/Liabilities (1)
 
Amounts Offset
 
Net Balance Sheet Amount
 
Financial Instruments (2)
 
Net Assets/Liabilities
(Dollars in millions)
September 30, 2019
Securities borrowed or purchased under agreements to resell (3)
$
436,856

 
$
(165,261
)
 
$
271,595

 
$
(246,906
)
 
$
24,689

Securities loaned or sold under agreements to repurchase
$
367,328

 
$
(165,261
)
 
$
202,067

 
$
(180,143
)
 
$
21,924

Other (4)
23,399

 

 
23,399

 
(23,399
)
 

Total
$
390,727

 
$
(165,261
)
 
$
225,466

 
$
(203,542
)
 
$
21,924

 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
Securities borrowed or purchased under agreements to resell (3)
$
366,274

 
$
(106,865
)
 
$
259,409

 
$
(240,790
)
 
$
18,619

Securities loaned or sold under agreements to repurchase
$
293,853

 
$
(106,865
)
 
$
186,988

 
$
(176,740
)
 
$
10,248

Other (4)
19,906

 

 
19,906

 
(19,906
)
 

Total
$
313,759

 
$
(106,865
)
 
$
206,894

 
$
(196,646
)
 
$
10,248


(1) 
Includes activity where uncertainty exists as to the enforceability of certain master netting agreements under bankruptcy laws in some countries or industries.
(2) 
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 derive a net asset or liability. Securities collateral received or pledged where the legal enforceability of the master netting agreements is uncertain is excluded from the table.
(3) 
Excludes repurchase activity of $14.2 billion and $11.5 billion reported in loans and leases on the Consolidated Balance Sheet at September 30, 2019 and December 31, 2018.
(4) 
Balance is reported in accrued expenses and other liabilities on the Consolidated Balance Sheet and relates to transactions where the Corporation acts as the lender in a securities lending agreement and receives securities that can be pledged as collateral or sold. 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.
Repurchase Agreements and Securities Loaned Transactions Accounted for as Secured Borrowings
The following tables present securities sold under agreements to repurchase and securities loaned by remaining contractual term to maturity and class of collateral pledged. Included in “Other” are transactions where the Corporation acts as the lender in a securities lending agreement and receives securities that can be pledged as collateral or sold. Certain agreements contain a right
to substitute collateral and/or terminate the agreement prior to maturity at the option of the Corporation or the counterparty. Such agreements are included in the table below based on the remaining contractual term to maturity. For more information on collateral requirements, see Note 10 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2018 Annual Report on Form 10-K.
 
 
 
 
 
 
 
 
 
 
Remaining Contractual Maturity
 
 
 
 
 
 
 
 
 
 
 
Overnight and Continuous
 
30 Days or Less
 
After 30 Days Through 90 Days
 
Greater than
90 Days (1)
 
Total
(Dollars in millions)
September 30, 2019
Securities sold under agreements to repurchase
$
193,237

 
$
80,022

 
$
31,557

 
$
45,706

 
$
350,522

Securities loaned
11,925

 
1,212

 
364

 
3,305

 
16,806

Other
23,399

 

 

 

 
23,399

Total
$
228,561

 
$
81,234

 
$
31,921

 
$
49,011

 
$
390,727

 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
Securities sold under agreements to repurchase
$
139,017

 
$
81,917

 
$
34,204

 
$
21,476

 
$
276,614

Securities loaned
7,753

 
4,197

 
1,783

 
3,506

 
17,239

Other
19,906

 

 

 

 
19,906

Total
$
166,676

 
$
86,114

 
$
35,987

 
$
24,982

 
$
313,759

(1) 
No agreements have maturities greater than three years.
 
 
 
 
 
 
 
 
Class of Collateral Pledged
 
 
 
 
 
 
 
 
 
Securities Sold Under Agreements to Repurchase
 
Securities
Loaned
 
Other
 
Total
(Dollars in millions)
September 30, 2019
U.S. government and agency securities
$
207,348

 
$
31

 
$

 
$
207,379

Corporate securities, trading loans and other
11,976

 
3,485

 
232

 
15,693

Equity securities
15,542

 
10,313

 
23,116

 
48,971

Non-U.S. sovereign debt
111,371

 
2,977

 
51

 
114,399

Mortgage trading loans and ABS
4,285

 

 

 
4,285

Total
$
350,522

 
$
16,806

 
$
23,399

 
$
390,727

 
 
 
 
 
 
 
 
 
December 31, 2018
U.S. government and agency securities
$
164,664

 
$

 
$

 
$
164,664

Corporate securities, trading loans and other
11,400

 
2,163

 
287

 
13,850

Equity securities
14,090

 
10,869

 
19,572

 
44,531

Non-U.S. sovereign debt
81,329

 
4,207

 
47

 
85,583

Mortgage trading loans and ABS
5,131

 

 

 
5,131

Total
$
276,614

 
$
17,239

 
$
19,906

 
$
313,759


Restricted Cash
At September 30, 2019 and December 31, 2018, the Corporation held restricted cash included within cash and cash equivalents on the Consolidated Balance Sheet of $20.4 billion and $22.6 billion, predominantly related to cash held on deposit with the Federal Reserve Bank and non-U.S. central banks to meet reserve requirements and cash segregated in compliance with securities regulations.