Annual report pursuant to Section 13 and 15(d)

Federal Funds Sold, Securities Borrowed or Purchased Under Agreements to Resell and Short-term Borrowings

v2.4.0.8
Federal Funds Sold, Securities Borrowed or Purchased Under Agreements to Resell and Short-term Borrowings
 12 Months Ended
Dec. 31, 2013
Federal Funds Sold, Securities Borrowed or Purchased Under Agreements to Resell and Short-term Borrowings [Abstract]  
Federal Funds Sold, Securities Borrowed or Purchased Under Agreements to Resell and Short-term Borrowings
Federal Funds Sold or Purchased, Securities Financing Agreements and Short-term Borrowings
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.
 
 
 
 
 
 
 
 
 
 
 
 
 
2013
 
2012
 
2011
(Dollars in millions)
Amount
 
Rate
 
Amount
 
Rate
 
Amount
 
Rate
Federal funds sold
 

 
 

 
 

 
 

 
 

 
 

At December 31
$
—

 
—
%
 
$
600

 
0.54
%
 
$
100

 
0.71
%
Average during year
7

 
0.69

 
351

 
0.43

 
273

 
0.39

Maximum month-end balance during year
550

 
n/a

 
600

 
n/a

 
782

 
n/a

Securities borrowed or purchased under agreements to resell
 
 
 
 
 
 
 
 
 
 
 
At December 31
190,328

 
0.60

 
219,324

 
0.92

 
211,083

 
0.76

Average during year
224,324

 
0.55

 
235,691

 
0.64

 
244,796

 
0.88

Maximum month-end balance during year
249,791

 
n/a

 
252,985

 
n/a

 
270,201

 
n/a

Federal funds purchased
 

 
 

 
 

 
 

 
 

 
 

At December 31
186

 
—

 
1,151

 
0.17

 
243

 
0.06

Average during year
192

 
0.06

 
384

 
0.11

 
1,658

 
0.08

Maximum month-end balance during year
1,272

 
n/a

 
1,211

 
n/a

 
4,133

 
n/a

Securities loaned or sold under agreements to repurchase
 

 
 

 
 

 
 

 
 

 
 

At December 31
197,920

 
0.92

 
292,108

 
1.11

 
214,621

 
1.08

Average during year
257,409

 
0.81

 
281,516

 
0.98

 
270,718

 
1.31

Maximum month-end balance during year
319,608

 
n/a

 
319,401

 
n/a

 
293,519

 
n/a

Short-term borrowings
 

 
 

 
 

 
 

 
 

 
 

At December 31
45,999

 
1.55

 
30,731

 
3.08

 
35,698

 
2.36

Average during year
43,816

 
1.89

 
36,500

 
2.22

 
51,893

 
2.00

Maximum month-end balance during year
48,387

 
n/a

 
40,129

 
n/a

 
62,621

 
n/a

n/a = not applicable
Bank of America, N.A. maintains a global program to offer up to a maximum of $75 billion outstanding at any one time, of bank notes with fixed or floating rates and maturities of at least seven days from the date of issue. Short-term bank notes outstanding under this program totaled $15.1 billion and $3.9 billion at December 31, 2013 and 2012. These short-term bank notes, along with Federal Home Loan Bank (FHLB) advances, U.S. Treasury tax and loan notes, and term federal funds purchased, are included in short-term borrowings on the Consolidated Balance Sheet. For information regarding the long-term notes that have been issued under the $75 billion bank note program, see Note 11 – Long-term Debt.
Offsetting of Securities Financing Agreements
Substantially all of the Corporation’s 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. 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 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 December 31, 2013 and 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 more information on the offsetting of derivatives, see Note 2 – Derivatives.
The “Other” amount in the Securities Financing Agreements table 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 in accrued expenses and other liabilities.
Gross assets and liabilities include activity where uncertainty exists as to the enforceability of certain master netting agreements under bankruptcy laws in some countries or industries and, accordingly, these are reported on a gross basis.
The column titled “Financial Instruments” in the Securities Financing Agreements table 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 the net balance sheet amount in the table to derive a net asset or liability. Securities collateral received or pledged where the legal enforceability of the master netting agreements is not certain is not included.
 
 
 
 
 
 
 
 
 
 
Securities Financing Agreements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
(Dollars in millions)
Gross Assets/Liabilities
 
Amounts Offset
 
Net Balance Sheet Amount
 
Financial Instruments
 
Net Assets/Liabilities
Securities borrowed or purchased under agreements to resell
$
272,296

 
$
(81,968
)
 
$
190,328

 
$
(157,132
)
 
$
33,196

 
 
 
 
 
 
 
 
 
 
Securities loaned or sold under agreements to repurchase
$
279,888

 
$
(81,968
)
 
$
197,920

 
$
(160,111
)
 
$
37,809

Other
10,871

 
—

 
10,871

 
(10,871
)
 
—

Total
$
290,759

 
$
(81,968
)
 
$
208,791

 
$
(170,982
)
 
$
37,809

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

 
$
(146,914
)
 
$
219,324

 
$
(173,593
)
 
$
45,731

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

 
$
(146,914
)
 
$
292,108

 
$
(217,817
)
 
$
74,291

Other
12,306

 
—

 
12,306

 
(12,302
)
 
4

Total
$
451,328

 
$
(146,914
)
 
$
304,414

 
$
(230,119
)
 
$
74,295