Bank of America Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

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

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

3 Months Ended

Mar. 31, 2015

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

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

NOTE 9 – 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.



	Three Months Ended March 31
	Amount					Rate
(Dollars in millions)	2015		2014			2015			2014
Average during period
Federal funds sold and securities borrowed or purchased under agreements to resell	$	213,931	$	212,504		0.44		%	0.51	%

Federal funds purchased and securities loaned or sold under agreements to repurchase	$	214,722	$	204,804		0.94		%	1.03	%
Short-term borrowings	29,412		48,168			1.47			0.75
Total	$	244,134	$	252,972		1.01			0.97

Maximum month-end balance during period
Federal funds sold and securities borrowed or purchased under agreements to resell	$	226,502	$	219,181

Federal funds purchased and securities loaned or sold under agreements to repurchase	$	219,212	$	216,884
Short-term borrowings	33,270		51,409

	March 31, 2015					December 31, 2014
	Amount		Rate			Amount			Rate
Period-end
Federal funds sold and securities borrowed or purchased under agreements to resell	$	206,708	0.42		%	$	191,823		0.47	%

Federal funds purchased and securities loaned or sold under agreements to repurchase	$	203,758	1.02		%	$	201,277		0.98	%
Short-term borrowings	33,270		2.00			31,172			1.47
Total	$	237,028	1.12			$	232,449		1.04

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 March 31, 2015 and December 31, 2014. 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 table, which is included on the Consolidated Balance Sheet in accrued expenses and other liabilities, 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, representing the obligation to return those securities.

Gross assets and liabilities in the table 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 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 this 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
	March 31, 2015
(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 ⁽¹⁾	$	343,394	$	(136,686	)	$	206,708	$	(164,058	)	$	42,650

Securities loaned or sold under agreements to repurchase	$	340,431	$	(136,686	)	$	203,745	$	(165,035	)	$	38,710
Other	12,326		—			12,326		(12,326		)	—
Total	$	352,757	$	(136,686	)	$	216,071	$	(177,361	)	$	38,710

	December 31, 2014
Securities borrowed or purchased under agreements to resell ⁽¹⁾	$	316,567	$	(124,744	)	$	191,823	$	(145,573	)	$	46,250

Securities loaned or sold under agreements to repurchase	$	326,007	$	(124,744	)	$	201,263	$	(164,306	)	$	36,957
Other	11,641		—			11,641		(11,641		)	—
Total	$	337,648	$	(124,744	)	$	212,904	$	(175,947	)	$	36,957


⁽¹⁾	Excludes repurchase activity of $7.7 billion and $5.6 billion reported in loans and leases on the Consolidated Balance Sheet at March 31, 2015 and December 31, 2014.