Quarterly report pursuant to Section 13 or 15(d)

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

v3.20.2
Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash
 9 Months Ended
Sep. 30, 2020
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 15 – Fair Value Option.
Amount Rate Amount Rate Amount Rate Amount Rate
  Three Months Ended September 30 Nine Months Ended September 30
(Dollars in millions) 2020 2019 2020 2019
Federal funds sold and securities borrowed or purchased under agreements to resell
        
Average during period $ 384,221  0.06  % $ 269,129  1.83  % $ 325,356  0.37  % $ 274,822  1.82  %
Maximum month-end balance during period 420,830  n/a 278,514  n/a 451,179  n/a 280,562  n/a
Federal funds purchased and securities loaned or sold under agreements to repurchase
        
Average during period $ 192,376  0.41  % $ 203,702  2.35  % $ 193,029  0.81  % $ 202,632  2.43  %
Maximum month-end balance during period 195,028  n/a 202,208  n/a 206,493  n/a 203,063  n/a
Short-term borrowings        
Average during period 17,770  0.08  26,579  2.29  23,347  0.68  21,728  2.62 
Maximum month-end balance during period 19,530  n/a 30,682  n/a 30,118  n/a 30,682  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 the securities financing agreements and the offsetting of securities financing transactions, see Note 11 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2019 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, 2020 and December 31, 2019. 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, 2020
Securities borrowed or purchased under agreements to resell (3)
$ 541,040  $ (214,295) $ 326,745  $ (300,403) $ 26,342 
Securities loaned or sold under agreements to repurchase $ 405,064  $ (214,295) $ 190,769  $ (179,875) $ 10,894 
Other (4)
12,644  —  12,644  (12,644) — 
Total $ 417,708  $ (214,295) $ 203,413  $ (192,519) $ 10,894 
December 31, 2019
Securities borrowed or purchased under agreements to resell (3)
$ 434,257  $ (159,660) $ 274,597  $ (244,486) $ 30,111 
Securities loaned or sold under agreements to repurchase $ 324,769  $ (159,660) $ 165,109  $ (141,482) $ 23,627 
Other (4)
15,346  —  15,346  (15,346) — 
Total $ 340,115  $ (159,660) $ 180,455  $ (156,828) $ 23,627 
(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 $15.2 billion and $12.9 billion reported in loans and leases on the Consolidated Balance Sheet at September 30, 2020 and December 31, 2019.
(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 11 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2019 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, 2020
Securities sold under agreements to repurchase $ 199,516  $ 108,084  $ 23,509  $ 48,913  $ 380,022 
Securities loaned 20,284  16  427  4,315  25,042 
Other 12,644  —  —  —  12,644 
Total $ 232,444  $ 108,100  $ 23,936  $ 53,228  $ 417,708 
December 31, 2019
Securities sold under agreements to repurchase $ 129,455  $ 122,685  $ 25,322  $ 21,922  $ 299,384 
Securities loaned 18,766  3,329  1,241  2,049  25,385 
Other 15,346  —  —  —  15,346 
Total $ 163,567  $ 126,014  $ 26,563  $ 23,971  $ 340,115 
(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, 2020
U.S. government and agency securities $ 211,538  $ —  $ —  $ 211,538 
Corporate securities, trading loans and other 12,177  1,763  786  14,726 
Equity securities 14,495  22,635  11,800  48,930 
Non-U.S. sovereign debt 138,518  644  58  139,220 
Mortgage trading loans and ABS 3,294  —  —  3,294 
Total $ 380,022  $ 25,042  $ 12,644  $ 417,708 
December 31, 2019
U.S. government and agency securities $ 173,533  $ 1  $ —  $ 173,534 
Corporate securities, trading loans and other 10,467  2,014  258  12,739 
Equity securities 14,933  20,026  15,024  49,983 
Non-U.S. sovereign debt 96,576  3,344  64  99,984 
Mortgage trading loans and ABS 3,875  —  —  3,875 
Total $ 299,384  $ 25,385  $ 15,346  $ 340,115 
Restricted Cash
At September 30, 2020 and December 31, 2019, the Corporation held restricted cash included within cash and cash equivalents on the Consolidated Balance Sheet of $6.5 billion and $24.4 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.