Quarterly report pursuant to Section 13 or 15(d)

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

v3.5.0.2
Federal Funds Sold or Purchased, Securities Financing Agreements and Short-term Borrowings (Tables)
 9 Months Ended
Sep. 30, 2016
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
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. The Corporation elects to account for certain securities financing agreements and short-term borrowings under the fair value option. For more information on the election of the fair value option, see Note 15 – Fair Value Option.

 
Three Months Ended September 30
 
Nine Months Ended September 30
 
Amount
 
Rate
 
Amount
 
Rate
(Dollars in millions)
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Average during period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold and securities borrowed or purchased under agreements to resell
$
214,254

 
$
210,127

 
0.50
%
 
0.52
%
 
$
215,476

 
$
212,781

 
0.50
%
 
0.49
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds purchased and securities loaned or sold under agreements to repurchase
$
177,883

 
$
219,613

 
0.93
%
 
0.83
%
 
$
184,500

 
$
218,112

 
1.00
%
 
0.92
%
Short-term borrowings
29,751

 
37,710

 
2.02

 
1.44

 
30,631

 
33,119

 
1.85

 
1.47

Total
$
207,634

 
$
257,323

 
1.09

 
0.92

 
$
215,131

 
$
251,231

 
1.12

 
0.99

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum month-end balance during period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold and securities borrowed or purchased under agreements to resell
$
222,489

 
$
217,701

 
 
 
 
 
$
225,015

 
$
226,502

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds purchased and securities loaned or sold under agreements to repurchase
$
192,536

 
$
235,232

 
 
 
 
 
$
196,631

 
$
235,232

 
 
 
 
Short-term borrowings
31,935

 
40,110

 
 
 
 
 
33,051

 
40,110

 
 
 
 
Offsetting Assets [Line Items]  
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
The tables below 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. At September 30, 2016 and December 31, 2015, the Corporation had no outstanding repurchase-to-maturity transactions.

Remaining Contractual Maturity
 
September 30, 2016
(Dollars in millions)
Overnight and Continuous
 
30 Days or Less
 
After 30 Days Through 90 Days
 
Greater than 90 Days (1)
 
Total
Securities sold under agreements to repurchase
$
143,277

 
$
72,784

 
$
43,945

 
$
40,385

 
$
300,391

Securities loaned
15,372

 
1,458

 
1,804

 
1,822

 
20,456

Other
15,588

 
—

 
—

 
—

 
15,588

Total
$
174,237

 
$
74,242

 
$
45,749

 
$
42,207

 
$
336,435

 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
Securities sold under agreements to repurchase
$
126,694

 
$
86,879

 
$
43,216

 
$
27,514

 
$
284,303

Securities loaned
39,772

 
363

 
2,352

 
2,288

 
44,775

Other
13,235

 
—

 
—

 
—

 
13,235

Total
$
179,701

 
$
87,242

 
$
45,568

 
$
29,802

 
$
342,313

(1) 
No agreements have maturities greater than three years.

Class of Collateral Pledged
 
 
 
 
 
 
 
 
September 30, 2016
(Dollars in millions)
Securities Sold Under Agreements to Repurchase
 
Securities Loaned
 
Other
 
Total
U.S. government and agency securities
$
177,348

 
$
—

 
$
137

 
$
177,485

Corporate securities, trading loans and other
8,724

 
1,475

 
326

 
10,525

Equity securities
20,517

 
11,261

 
15,089

 
46,867

Non-U.S. sovereign debt
85,885

 
7,720

 
36

 
93,641

Mortgage trading loans and ABS
7,917

 
—

 
—

 
7,917

Total
$
300,391

 
$
20,456

 
$
15,588

 
$
336,435

 
 
 
 
 
 
 
 
 
December 31, 2015
U.S. government and agency securities
$
142,572

 
$
—

 
$
27

 
$
142,599

Corporate securities, trading loans and other
11,767

 
265

 
278

 
12,310

Equity securities
32,323

 
13,350

 
12,929

 
58,602

Non-U.S. sovereign debt
87,849

 
31,160

 
1

 
119,010

Mortgage trading loans and ABS
9,792

 
—

 
—

 
9,792

Total
$
284,303

 
$
44,775

 
$
13,235

 
$
342,313

Securities Borrowed and Securities Purchased Under Agreements to Resell  
Offsetting Assets [Line Items]  
Offsetting Assets
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, 2016 and December 31, 2015. 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 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.

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
 
September 30, 2016
(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)
$
361,474

 
$
(142,664
)
 
$
218,810

 
$
(168,580
)
 
$
50,230

 
 
 
 
 
 
 
 
 
 
Securities loaned or sold under agreements to repurchase
$
320,847

 
$
(142,664
)
 
$
178,183

 
$
(148,316
)
 
$
29,867

Other
15,588

 
—

 
15,588

 
(15,588
)
 
—

Total
$
336,435

 
$
(142,664
)
 
$
193,771

 
$
(163,904
)
 
$
29,867

 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
Securities borrowed or purchased under agreements to resell (1)
$
347,281

 
$
(154,799
)
 
$
192,482

 
$
(144,332
)
 
$
48,150

 
 
 
 
 
 
 
 
 
 
Securities loaned or sold under agreements to repurchase
$
329,078

 
$
(154,799
)
 
$
174,279

 
$
(135,737
)
 
$
38,542

Other
13,235

 
—

 
13,235

 
(13,235
)
 
—

Total
$
342,313

 
$
(154,799
)
 
$
187,514

 
$
(148,972
)
 
$
38,542


(1) 
Excludes repurchase activity of $11.3 billion and $9.3 billion reported in loans and leases on the Consolidated Balance Sheet at September 30, 2016 and December 31, 2015.

Securities Loaned and Financial Assets Sold Under Agreements to Repurchase  
Offsetting Liabilities [Line Items]  
Offsetting Liabilities
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, 2016 and December 31, 2015. 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 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.

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
 
September 30, 2016
(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)
$
361,474

 
$
(142,664
)
 
$
218,810

 
$
(168,580
)
 
$
50,230

 
 
 
 
 
 
 
 
 
 
Securities loaned or sold under agreements to repurchase
$
320,847

 
$
(142,664
)
 
$
178,183

 
$
(148,316
)
 
$
29,867

Other
15,588

 
—

 
15,588

 
(15,588
)
 
—

Total
$
336,435

 
$
(142,664
)
 
$
193,771

 
$
(163,904
)
 
$
29,867

 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
Securities borrowed or purchased under agreements to resell (1)
$
347,281

 
$
(154,799
)
 
$
192,482

 
$
(144,332
)
 
$
48,150

 
 
 
 
 
 
 
 
 
 
Securities loaned or sold under agreements to repurchase
$
329,078

 
$
(154,799
)
 
$
174,279

 
$
(135,737
)
 
$
38,542

Other
13,235

 
—

 
13,235

 
(13,235
)
 
—

Total
$
342,313

 
$
(154,799
)
 
$
187,514

 
$
(148,972
)
 
$
38,542


(1) 
Excludes repurchase activity of $11.3 billion and $9.3 billion reported in loans and leases on the Consolidated Balance Sheet at September 30, 2016 and December 31, 2015.