Quarterly report pursuant to Section 13 or 15(d)

Securities Financing Agreements and Restricted Cash

v3.22.1
Securities Financing Agreements and Restricted Cash
 3 Months Ended
Mar. 31, 2022
Securities Financing Agreements, Short-term Borrowings and Restricted Cash [Abstract]  
Securities Financing Agreements and Restricted Cash Securities Financing Agreements and Restricted Cash
The Corporation enters into securities financing agreements which include securities borrowed or purchased under agreements to resell and securities loaned or sold under agreements to repurchase. These financing agreements (also referred to as “matched-book transactions”) are to accommodate customers, obtain securities to cover short positions and finance inventory positions. The Corporation elects to account for certain securities financing agreements under the fair value option. For more information on the fair value option, see Note 15 – Fair Value Option.
Offsetting of Securities Financing Agreements
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 March 31, 2022 and December 31, 2021. 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. For more information on the securities financing agreements and the offsetting of securities financing transactions, see Note 10 – Securities Financing Agreements, Short-term Borrowings and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2021 Annual Report on Form 10-K.
Securities Financing Agreements
Gross Assets/Liabilities (1)
Amounts Offset Net Balance Sheet Amount
Financial Instruments (2)
Net Assets/Liabilities
(Dollars in millions) March 31, 2022
Securities borrowed or purchased under agreements to resell (3)
$ 564,363  $ (262,255) $ 302,108  $ (269,121) $ 32,987 
Securities loaned or sold under agreements to repurchase $ 476,940  $ (262,255) $ 214,685  $ (204,406) $ 10,279 
Other (4)
11,918  —  11,918  (11,918) — 
Total $ 488,858  $ (262,255) $ 226,603  $ (216,324) $ 10,279 
December 31, 2021
Securities borrowed or purchased under agreements to resell (3)
$ 527,054  $ (276,334) $ 250,720  $ (229,525) $ 21,195 
Securities loaned or sold under agreements to repurchase $ 468,663  $ (276,334) $ 192,329  $ (181,860) $ 10,469 
Other (4)
11,391  —  11,391  (11,391) — 
Total $ 480,054  $ (276,334) $ 203,720  $ (193,251) $ 10,469 
(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 $12.7 billion and $20.1 billion reported in loans and leases on the Consolidated Balance Sheet at March 31, 2022 and December 31, 2021.
(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 – Securities Financing Agreements, Short-term Borrowings and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2021 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) March 31, 2022
Securities sold under agreements to repurchase $ 183,341  $ 161,659  $ 40,467  $ 33,826  $ 419,293 
Securities loaned 50,822  563  1,147  5,115  57,647 
Other 11,918  —  —  —  11,918 
Total $ 246,081  $ 162,222  $ 41,614  $ 38,941  $ 488,858 
December 31, 2021
Securities sold under agreements to repurchase $ 148,023  $ 194,964  $ 36,939  $ 36,501  $ 416,427 
Securities loaned 46,231  466  1,428  4,111  52,236 
Other 11,391  —  —  —  11,391 
Total $ 205,645  $ 195,430  $ 38,367  $ 40,612  $ 480,054 
(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) March 31, 2022
U.S. government and agency securities $ 204,118  $ 15  $ —  $ 204,133 
Corporate securities, trading loans and other 12,946  2,392  1,154  16,492 
Equity securities 18,609  54,662  10,710  83,981 
Non-U.S. sovereign debt 179,545  578  54  180,177 
Mortgage trading loans and ABS 4,075  —  —  4,075 
Total $ 419,293  $ 57,647  $ 11,918  $ 488,858 
December 31, 2021
U.S. government and agency securities $ 201,546  $ 27  $ —  $ 201,573 
Corporate securities, trading loans and other 12,838  3,440  1,148  17,426 
Equity securities 19,907  48,650  10,192  78,749 
Non-U.S. sovereign debt 178,019  119  51  178,189 
Mortgage trading loans and ABS 4,117  —  —  4,117 
Total $ 416,427  $ 52,236  $ 11,391  $ 480,054 
Restricted Cash
At March 31, 2022 and December 31, 2021, the Corporation held restricted cash included within cash and cash equivalents on the Consolidated Balance Sheet of $6.2 billion and $5.9 billion, predominantly related to cash segregated in compliance with securities regulations and cash held on deposit with central banks to meet reserve requirements.