| Schedule Of Fair Value Option Elections |
The table below provides information about the fair value carrying amount and the contractual principal outstanding of assets and liabilities accounted for under the fair value option at December 31, 2013 and 2012.
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Fair Value Option Elections |
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December 31 |
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2013 |
|
2012 |
(Dollars in millions) |
Fair Value Carrying Amount |
|
Contractual Principal Outstanding |
|
Fair Value Carrying Amount Less Unpaid Principal |
|
Fair Value Carrying Amount |
|
Contractual Principal Outstanding |
|
Fair Value Carrying Amount Less Unpaid Principal |
Loans reported as trading account assets (1)
|
$ |
2,200 |
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|
$ |
4,315 |
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|
$ |
(2,115 |
) |
|
$ |
1,663 |
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$ |
2,879 |
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$ |
(1,216 |
) |
Trading inventory - other |
5,475 |
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n/a |
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n/a |
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|
2,170 |
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n/a |
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n/a |
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Consumer and commercial loans |
10,042 |
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10,423 |
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(381 |
) |
|
9,002 |
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9,576 |
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(574 |
) |
Loans held-for-sale |
6,656 |
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6,996 |
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(340 |
) |
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11,659 |
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12,676 |
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(1,017 |
) |
Securities financing agreements |
109,298 |
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109,032 |
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266 |
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141,309 |
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140,791 |
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|
518 |
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Other assets |
278 |
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270 |
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8 |
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|
453 |
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270 |
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183 |
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Long-term deposits |
1,899 |
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2,115 |
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(216 |
) |
|
2,262 |
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2,046 |
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|
216 |
|
Asset-backed secured financings |
— |
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— |
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— |
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|
741 |
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1,176 |
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(435 |
) |
Unfunded loan commitments |
354 |
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n/a |
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n/a |
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528 |
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n/a |
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n/a |
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Short-term borrowings |
1,520 |
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1,520 |
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— |
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3,333 |
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3,333 |
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— |
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Long-term debt (2, 3)
|
47,035 |
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46,669 |
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366 |
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49,161 |
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50,792 |
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(1,631 |
) |
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(1) |
A significant portion of the loans reported as trading account assets are distressed loans which trade and were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding. |
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(2) |
The majority of the difference between the fair value carrying amount and contractual principal outstanding at December 31, 2013 and 2012 relates to the impact of the Corporation’s credit spreads as well as the fair value of the embedded derivative, where applicable.
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(3) |
Includes structured liabilities with a fair value of $40.7 billion and contractual principal outstanding of $39.7 billion at December 31, 2013 compared to $39.3 billion and $39.9 billion at December 31, 2012.
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n/a = not applicable
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| Fair Value Option |
The table below provides information about where changes in the fair value of assets and liabilities accounted for under the fair value option are included in the Consolidated Statement of Income for 2013, 2012 and 2011.
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Gains (Losses) Relating to Assets and Liabilities Accounted for Under the Fair Value Option |
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2013 |
(Dollars in millions) |
Trading Account Profits (Losses) |
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Mortgage Banking Income
(Loss)
|
|
Other
Income
(Loss)
|
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Total |
Loans reported as trading account assets |
$ |
83 |
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$ |
— |
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$ |
— |
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$ |
83 |
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Trading inventory - other (1)
|
1,355 |
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— |
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— |
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|
1,355 |
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Consumer and commercial loans |
(28 |
) |
|
(38 |
) |
|
240 |
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|
174 |
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Loans held-for-sale (2)
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7 |
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|
966 |
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|
75 |
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1,048 |
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Securities financing agreements |
(80 |
) |
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— |
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— |
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(80 |
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Other assets |
— |
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— |
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(77 |
) |
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(77 |
) |
Long-term deposits |
30 |
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— |
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|
84 |
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114 |
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Asset-backed secured financings |
— |
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(91 |
) |
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— |
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(91 |
) |
Unfunded loan commitments |
— |
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— |
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|
180 |
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180 |
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Short-term borrowings |
(70 |
) |
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— |
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— |
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(70 |
) |
Long-term debt (3)
|
(602 |
) |
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— |
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(649 |
) |
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(1,251 |
) |
Total |
$ |
695 |
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$ |
837 |
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$ |
(147 |
) |
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$ |
1,385 |
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2012 |
Loans reported as trading account assets |
$ |
232 |
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$ |
— |
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$ |
— |
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$ |
232 |
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Trading inventory - other (1)
|
659 |
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— |
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— |
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|
659 |
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Consumer and commercial loans |
17 |
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— |
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|
542 |
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559 |
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Loans held-for-sale (2)
|
75 |
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3,048 |
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190 |
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3,313 |
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Securities financing agreements |
(90 |
) |
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— |
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— |
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(90 |
) |
Other assets |
— |
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— |
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12 |
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12 |
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Long-term deposits |
— |
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— |
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29 |
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29 |
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Asset-backed secured financings |
— |
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(180 |
) |
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— |
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(180 |
) |
Unfunded loan commitments |
— |
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— |
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|
704 |
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|
704 |
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Short-term borrowings |
1 |
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— |
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— |
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1 |
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Long-term debt (3)
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(1,888 |
) |
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— |
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(5,107 |
) |
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(6,995 |
) |
Total |
$ |
(994 |
) |
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$ |
2,868 |
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$ |
(3,630 |
) |
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$ |
(1,756 |
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2011 |
Loans reported as trading account assets |
$ |
73 |
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$ |
— |
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$ |
— |
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$ |
73 |
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Consumer and commercial loans |
15 |
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— |
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(275 |
) |
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(260 |
) |
Loans held-for-sale (2)
|
(20 |
) |
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4,535 |
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|
148 |
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4,663 |
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Securities financing agreements |
127 |
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— |
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— |
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127 |
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Other assets |
— |
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— |
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|
196 |
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|
196 |
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Long-term deposits |
— |
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— |
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(77 |
) |
|
(77 |
) |
Asset-backed secured financings |
— |
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|
(30 |
) |
|
— |
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(30 |
) |
Unfunded loan commitments |
— |
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|
— |
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|
(429 |
) |
|
(429 |
) |
Short-term borrowings |
261 |
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|
— |
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— |
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|
261 |
|
Long-term debt (3)
|
2,149 |
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|
— |
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|
3,320 |
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|
5,469 |
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Total |
$ |
2,605 |
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$ |
4,505 |
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$ |
2,883 |
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$ |
9,993 |
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(1) |
The gains in trading account profits (losses) are primarily offset by losses on trading liabilities that hedge these assets. |
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(2) |
Includes the value of interest rate lock commitments on loans funded, including those already sold during the period. |
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(3) |
The majority of the net gains (losses) in trading account profits (losses) relate to the embedded derivative in structured liabilities and are offset by gains (losses) on derivatives and securities that hedge these liabilities. The net gains (losses) in other income (loss) relate to the impact on structured liabilities of changes in the Corporation’s credit spreads. |
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