Quarterly report pursuant to Section 13 or 15(d)

Transactions with Bank of America

v2.4.0.6
Transactions with Bank of America
 3 Months Ended
Mar. 31, 2012
Related Party Transactions [Abstract]  
Transactions with Bank of America
Note 2.  
Transactions with Bank of America
Merrill Lynch has entered into various transactions with Bank of America, including transactions in connection with certain sales and trading and financing activities as well as the allocation of certain shared services. Details on amounts receivable from and payable to Bank of America as of March 31, 2012 and December 31, 2011 are presented below.
Receivables from Bank of America are comprised of:
(dollars in millions)
 
March 31, 2012

December 31, 2011
Cash and cash equivalents
$
6,729

 
$
7,491

Cash and securities segregated for regulatory purposes
5,865

 
6,107

Receivables under resale agreements
22,784

 
26,855

Trading assets
1,942

 
700

Net intercompany funding receivable
77

 
3,567

Other receivables
5,440

 
6,252

 
$
42,837

 
$
50,972

Payables to Bank of America are comprised of:
(dollars in millions)
 
March 31, 2012
 
December 31, 2011
Payables under repurchase agreements
$
586

 
$
22,647

Payables under securities loaned transactions
4,046

 
2,519

Short-term borrowings
1,160

 
1,450

Deposits
105

 
75

Trading liabilities
692

 
503

Other payables
3,365

 
1,935

Long-term borrowings(1)
3,180

 
2,650

Total
$
13,134

 
$
31,779

 
 
 
 
(1)
Amounts include $2,578 of subordinated borrowings from Bank of America (see Note 12).
Total net revenues and non-interest expenses related to transactions with Bank of America for the three months ended March 31, 2012 were $209 million and $425 million, respectively. Total net revenues and non-interest expenses related to transactions with Bank of America for the three months ended March 31, 2011 were $318 million and $615 million, respectively. Total net revenues related to transactions with Bank of America for the three months ended March 31, 2012 and March 31, 2011 included intercompany service fee revenues of $167 million and $233 million, respectively. Total non-interest expenses related to transactions with Bank of America for the three months ended March 31, 2012 and March 31, 2011 included intercompany service fee expenses of $394 million and $553 million, respectively. Intercompany service fee revenue and service fee expense from Bank of America represents the allocations of certain centralized or shared business activities between Merrill Lynch and Bank of America. Such fees are generally determined in accordance with subsidiary transfer pricing agreements.
Bank of America and Merrill Lynch have entered into certain intercompany lending and borrowing arrangements to facilitate centralized liquidity management. Included in these arrangements is a $50 billion extendible one-year revolving credit facility that allows Bank of America to borrow funds from Merrill Lynch at a spread to the London Interbank Offered Rate ("LIBOR") that is reset periodically and is consistent with other intercompany agreements. The credit facility matures on January 1, 2013 and will automatically be extended by one year to the succeeding January 1st unless Merrill Lynch provides written notice not to extend at least 45 days prior to the maturity date. There were no amounts outstanding at both March 31, 2012 and December 31, 2011 under this credit facility. There is also a short-term revolving credit facility that allows Bank of America to borrow up to an additional $25 billion. Interest on borrowings under the credit facility is based on prevailing short-term market rates. The line of credit matures on February 12, 2013. At March 31, 2012, there were no amounts outstanding under this credit facility. See Note 12 for further information on intercompany financing agreements with Bank of America. In addition, Bank of America has guaranteed the performance of Merrill Lynch on certain derivative transactions (see Note 6). Bank of America has also guaranteed certain debt securities, warrants and/or other certificates and obligations of certain subsidiaries of ML & Co. (see Note 12).