| Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash |
Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash
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 fair value option, see Note 16 – Fair Value Option.
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Amount |
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Rate |
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Amount |
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Rate |
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Amount |
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Rate |
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Amount |
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Rate |
|
Three Months Ended September 30 |
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Nine Months Ended September 30 |
(Dollars in millions) |
2019 |
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2018 |
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2019 |
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2018 |
Federal funds sold and securities borrowed or purchased under agreements to resell |
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Average during period |
$ |
269,129 |
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1.83 |
% |
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$ |
241,426 |
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1.31 |
% |
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$ |
274,822 |
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|
1.82 |
% |
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$ |
247,183 |
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|
1.15 |
% |
Maximum month-end balance during period |
278,514 |
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n/a |
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267,989 |
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n/a |
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280,562 |
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n/a |
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267,989 |
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n/a |
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Federal funds purchased and securities loaned or sold under agreements to repurchase |
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Average during period |
$ |
203,702 |
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2.35 |
% |
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$ |
191,693 |
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1.88 |
% |
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$ |
202,632 |
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2.43 |
% |
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$ |
193,854 |
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1.71 |
% |
Maximum month-end balance during period |
202,208 |
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n/a |
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189,206 |
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n/a |
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203,063 |
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n/a |
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199,419 |
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n/a |
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Short-term borrowings |
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Average during period |
26,579 |
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2.29 |
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33,410 |
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2.89 |
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21,728 |
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2.62 |
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40,048 |
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2.49 |
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Maximum month-end balance during period |
30,682 |
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n/a |
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36,043 |
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n/a |
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30,682 |
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n/a |
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52,480 |
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n/a |
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n/a = not applicable
Offsetting of Securities Financing Agreements
The Corporation enters into securities financing agreements to accommodate customers (also referred to as “matched-book transactions”), obtain securities to cover short positions and finance inventory positions. For more information on securities financing agreements and the offsetting of securities financing transactions, see Note 10 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2018 Annual Report on Form 10-K.
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, 2019 and December 31, 2018. 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.
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Securities Financing Agreements |
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Gross Assets/Liabilities (1)
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Amounts Offset |
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Net Balance Sheet Amount |
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Financial Instruments (2)
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Net Assets/Liabilities |
(Dollars in millions) |
September 30, 2019 |
Securities borrowed or purchased under agreements to resell (3)
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$ |
436,856 |
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$ |
(165,261 |
) |
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$ |
271,595 |
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$ |
(246,906 |
) |
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$ |
24,689 |
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Securities loaned or sold under agreements to repurchase |
$ |
367,328 |
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$ |
(165,261 |
) |
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$ |
202,067 |
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$ |
(180,143 |
) |
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$ |
21,924 |
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Other (4)
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23,399 |
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— |
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23,399 |
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(23,399 |
) |
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— |
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Total |
$ |
390,727 |
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$ |
(165,261 |
) |
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$ |
225,466 |
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$ |
(203,542 |
) |
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$ |
21,924 |
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December 31, 2018 |
Securities borrowed or purchased under agreements to resell (3)
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$ |
366,274 |
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$ |
(106,865 |
) |
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$ |
259,409 |
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$ |
(240,790 |
) |
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$ |
18,619 |
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Securities loaned or sold under agreements to repurchase |
$ |
293,853 |
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$ |
(106,865 |
) |
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$ |
186,988 |
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$ |
(176,740 |
) |
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$ |
10,248 |
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Other (4)
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19,906 |
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— |
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19,906 |
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(19,906 |
) |
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— |
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Total |
$ |
313,759 |
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$ |
(106,865 |
) |
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$ |
206,894 |
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$ |
(196,646 |
) |
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$ |
10,248 |
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(1) |
Includes activity where uncertainty exists as to the enforceability of certain master netting agreements under bankruptcy laws in some countries or industries. |
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(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. |
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(3) |
Excludes repurchase activity of $14.2 billion and $11.5 billion reported in loans and leases on the Consolidated Balance Sheet at September 30, 2019 and December 31, 2018.
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(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 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2018 Annual Report on Form 10-K.
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Remaining Contractual Maturity |
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Overnight and Continuous |
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30 Days or Less |
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After 30 Days Through 90 Days |
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Greater than
90 Days (1)
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Total |
(Dollars in millions) |
September 30, 2019 |
Securities sold under agreements to repurchase |
$ |
193,237 |
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$ |
80,022 |
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$ |
31,557 |
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$ |
45,706 |
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$ |
350,522 |
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Securities loaned |
11,925 |
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1,212 |
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|
364 |
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3,305 |
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|
16,806 |
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Other |
23,399 |
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— |
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— |
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— |
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23,399 |
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Total |
$ |
228,561 |
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$ |
81,234 |
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$ |
31,921 |
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$ |
49,011 |
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$ |
390,727 |
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December 31, 2018 |
Securities sold under agreements to repurchase |
$ |
139,017 |
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$ |
81,917 |
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$ |
34,204 |
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$ |
21,476 |
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$ |
276,614 |
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Securities loaned |
7,753 |
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|
4,197 |
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|
1,783 |
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|
3,506 |
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|
17,239 |
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Other |
19,906 |
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— |
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— |
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— |
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|
19,906 |
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Total |
$ |
166,676 |
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$ |
86,114 |
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$ |
35,987 |
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$ |
24,982 |
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$ |
313,759 |
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(1) |
No agreements have maturities greater than three years.
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Class of Collateral Pledged |
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Securities Sold Under Agreements to Repurchase |
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Securities
Loaned
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Other |
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Total |
(Dollars in millions) |
September 30, 2019 |
U.S. government and agency securities |
$ |
207,348 |
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$ |
31 |
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$ |
— |
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$ |
207,379 |
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Corporate securities, trading loans and other |
11,976 |
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|
3,485 |
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|
232 |
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|
15,693 |
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Equity securities |
15,542 |
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|
10,313 |
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23,116 |
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|
48,971 |
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Non-U.S. sovereign debt |
111,371 |
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|
2,977 |
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51 |
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114,399 |
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Mortgage trading loans and ABS |
4,285 |
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— |
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— |
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|
4,285 |
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Total |
$ |
350,522 |
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$ |
16,806 |
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$ |
23,399 |
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$ |
390,727 |
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December 31, 2018 |
U.S. government and agency securities |
$ |
164,664 |
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$ |
— |
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$ |
— |
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$ |
164,664 |
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Corporate securities, trading loans and other |
11,400 |
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|
2,163 |
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|
287 |
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|
13,850 |
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Equity securities |
14,090 |
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|
10,869 |
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19,572 |
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|
44,531 |
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Non-U.S. sovereign debt |
81,329 |
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|
4,207 |
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|
47 |
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|
85,583 |
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Mortgage trading loans and ABS |
5,131 |
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— |
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— |
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|
5,131 |
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Total |
$ |
276,614 |
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$ |
17,239 |
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$ |
19,906 |
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$ |
313,759 |
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Restricted Cash
At September 30, 2019 and December 31, 2018, the Corporation held restricted cash included within cash and cash equivalents on the Consolidated Balance Sheet of $20.4 billion and $22.6 billion, predominantly related to cash held on deposit with the Federal Reserve Bank and non-U.S. central banks to meet reserve requirements and cash segregated in compliance with securities regulations.
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