Quarterly report pursuant to Section 13 or 15(d)

Securities Financing Agreements, Collateral and Restricted Cash

v3.23.3
Securities Financing Agreements, Collateral and Restricted Cash
 9 Months Ended
Sep. 30, 2023
Securities Financing Agreements, Collateral and Restricted Cash [Abstract]  
Securities Financing Agreements, Collateral and Restricted Cash Securities Financing Agreements, Collateral 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 September 30, 2023 and December 31, 2022. 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, Collateral and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2022 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) September 30, 2023
Securities borrowed or purchased under agreements to resell (3)
$ 651,337  $ (342,088) $ 309,249  $ (283,835) $ 25,414 
Securities loaned or sold under agreements to repurchase $ 642,791  $ (342,088) $ 300,703  $ (285,522) $ 15,181 
Other (4)
8,304  —  8,304  (8,304) — 
Total $ 651,095  $ (342,088) $ 309,007  $ (293,826) $ 15,181 
December 31, 2022
Securities borrowed or purchased under agreements to resell (3)
$ 597,847  $ (330,273) $ 267,574  $ (240,120) $ 27,454 
Securities loaned or sold under agreements to repurchase $ 525,908  $ (330,273) $ 195,635  $ (183,265) $ 12,370 
Other (4)
8,427  —  8,427  (8,427) — 
Total $ 534,335  $ (330,273) $ 204,062  $ (191,692) $ 12,370 
(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 $8.6 billion and $8.7 billion reported in loans and leases on the Consolidated Balance Sheet at September 30, 2023 and December 31, 2022.
(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, Collateral and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2022 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, 2023
Securities sold under agreements to repurchase $ 257,669  $ 167,947  $ 78,648  $ 58,853  $ 563,117 
Securities loaned 74,247  152  971  4,304  79,674 
Other 8,304  —  —  —  8,304 
Total $ 340,220  $ 168,099  $ 79,619  $ 63,157  $ 651,095 
December 31, 2022
Securities sold under agreements to repurchase $ 200,087  $ 181,632  $ 41,666  $ 30,107  $ 453,492 
Securities loaned 66,909  288  1,139  4,080  72,416 
Other 8,427  —  —  —  8,427 
Total $ 275,423  $ 181,920  $ 42,805  $ 34,187  $ 534,335 
(1)No agreements have maturities greater than four years.
Class of Collateral Pledged
Securities Sold Under Agreements to Repurchase Securities
Loaned		 Other Total
(Dollars in millions) September 30, 2023
U.S. government and agency securities $ 310,064  $ —  $ 20  $ 310,084 
Corporate securities, trading loans and other 20,488  778  7  21,273 
Equity securities 7,410  78,896  8,260  94,566 
Non-U.S. sovereign debt 220,382  —  17  220,399 
Mortgage trading loans and ABS 4,773  —  —  4,773 
Total $ 563,117  $ 79,674  $ 8,304  $ 651,095 
December 31, 2022
U.S. government and agency securities $ 193,005  $ 18  $ —  $ 193,023 
Corporate securities, trading loans and other 14,345  2,896  317  17,558 
Equity securities 10,249  69,432  8,110  87,791 
Non-U.S. sovereign debt 232,171  70  —  232,241 
Mortgage trading loans and ABS 3,722  —  —  3,722 
Total $ 453,492  $ 72,416  $ 8,427  $ 534,335 
Collateral
The Corporation accepts securities and loans as collateral that it is permitted by contract or practice to sell or repledge. At September 30, 2023 and December 31, 2022, the fair value of this collateral was $852.7 billion and $827.6 billion, of which $820.9 billion and $764.1 billion was sold or repledged. The primary source of this collateral is securities borrowed or purchased under agreements to resell. For more information on collateral, see Note 10 – Securities Financing Agreements, Short-term Borrowings, Collateral and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2022 Annual Report on Form 10-K.
Restricted Cash
At September 30, 2023 and December 31, 2022, the Corporation held restricted cash included within cash and cash equivalents on the Consolidated Balance Sheet of $6.1 billion and $7.6 billion, predominantly related to cash segregated in compliance with securities regulations and cash held on deposit with central banks to meet reserve requirements.