Quarterly report pursuant to Section 13 or 15(d)

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

v2.4.0.6
Federal Funds Sold or Purchased, Securities Financing Agreements and Short-term Borrowings
 3 Months Ended
Mar. 31, 2013
Debt Disclosure [Abstract]  
Short-term Debt

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 March 31
 
Amount
 
Rate
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Average during period
 
 
 
 
 
 
 
Federal funds sold
$
2

 
$
107

 
0.60
%
 
0.73
%
Securities borrowed or purchased under agreements to resell
237,461

 
232,954

 
0.54

 
0.79

Total
$
237,463

 
$
233,061

 
0.54

 
0.79

 
 
 
 
 
 
 
 
Federal funds purchased
$
192

 
$
261

 
0.05
%
 
0.05
%
Securities loaned or sold under agreements to repurchase
300,746

 
256,144

 
0.72

 
1.10

Short-term borrowings
36,706

 
36,651

 
2.36

 
1.99

Total
$
337,644

 
$
293,056

 
0.90

 
1.21

 
 
 
 
 
 
 
 
Maximum month-end balance during period
 
 
 
 
 
 
 
Federal funds sold
$
—

 
$
102

 
 
 
 
Securities borrowed or purchased under agreements to resell
249,791

 
248,267

 
 
 
 
 
 
 
 
 
 
 
 
Federal funds purchased
176

 
331

 
 
 
 
Securities loaned or sold under agreements to repurchase
319,608

 
276,403

 
 
 
 
Short-term borrowings
42,148

 
39,499

 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2013
 
December 31, 2012
 
Amount
 
Rate
 
Amount
 
Rate
Period-end balance
 
 
 
 
 
 
 
Federal funds sold
$
—

 
—
%
 
$
600

 
0.54
%
Securities borrowed or purchased under agreements to resell
220,623

 
0.53

 
219,324

 
0.92

Total
$
220,623

 
0.53

 
$
219,924

 
0.92

 
 
 
 
 
 
 
 
Federal funds purchased
$
161

 
0.05
%
 
$
1,151

 
0.17
%
Securities loaned or sold under agreements to repurchase
247,988

 
0.77

 
292,108

 
1.11

Short-term borrowings
42,148

 
2.59

 
30,731

 
3.08

Total
$
290,297

 
1.00

 
$
323,990

 
1.29



Offsetting of Securities Financing Agreements

Substantially all 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. In certain instances, 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 table below presents securities financing agreements included on the Consolidated Balance Sheet in federal funds sold and securities borrowed or purchased under agreements to resell and federal funds purchased and securities loaned or sold under agreements to repurchase at March 31, 2013 and December 31, 2012. 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 information on the offsetting of derivatives, see Note 3 – Derivatives.

The "other" amount in the table below 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 for the same amount, representing the obligation to return those securities. The "other" amount is included on the Consolidated Balance Sheet in other assets and accrued expenses and other liabilities.

The column titled "Financial Instruments" in the table below includes securities collateral purchased or sold, and received or pledged 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 the table to derive a net asset or liability.

Gross assets and liabilities include activity where the enforceability of certain master netting agreements under bankruptcy laws in some countries or industries is not certain and accordingly are reported on a gross basis.

Securities Financing Agreements
 
March 31, 2013
(Dollars in millions)
Gross Assets/Liabilities
 
Amounts Offset
 
Net Balance Sheet Amount
 
Financial Instruments
 
Net Asset/Liability
Securities borrowed or purchased under agreements to resell
$
356,816

 
$
(136,193
)
 
$
220,623

 
$
(194,312
)
 
$
26,311

 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
Securities borrowed or purchased under agreements to resell
$
366,238

 
$
(146,914
)
 
$
219,324

 
$
(191,806
)
 
$
27,518

 
 
 
 
 
 
 
 
 
 
 
March 31, 2013
Securities loaned or sold under agreements to repurchase
$
384,181

 
$
(136,193
)
 
$
247,988

 
$
(210,823
)
 
$
37,165

Other
13,366

 
—

 
13,366

 
(13,356
)
 
10

Total
$
397,547

 
$
(136,193
)
 
$
261,354

 
$
(224,179
)
 
$
37,175

 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
Securities loaned or sold under agreements to repurchase
$
439,022

 
$
(146,914
)
 
$
292,108

 
$
(247,756
)
 
$
44,352

Other
12,306

 
—

 
12,306

 
(12,302
)
 
4

Total
$
451,328

 
$
(146,914
)
 
$
304,414

 
$
(260,058
)
 
$
44,356