Securities Financing Arrangements

The Company enters into derivative transactions, securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned transactions. The Company executes these transactions to facilitate customer match-book activity, cover short positions and to fund the Company's trading inventory. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with counterparties. The relevant agreements allow for the efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. In certain cases the Company may agree for collateral to be posted to a third party custodian under a tri-party arrangement that enables the Company to take control of such collateral in the event of a counterparty default. Default events generally include, among other things, failure to pay, insolvency or bankruptcy of a counterparty.

The Company primarily enters into derivative contracts, repurchase agreements and securities lending agreements with counterparties utilizing standard International Swaps and Derivatives Association Master Agreements, Master Repurchase Agreements, and Master Securities Lending Agreements, respectively. These agreements generally establish the terms and conditions of the transactions, including a legal right to set-off amounts payable and receivable between the Company and a counterparty, regardless of whether or not such amounts have matured or have contingency features.

The following tables present the offsetting of financial assets and liabilities as of December 31, 2016 and December 31, 2015:



	December 31, 2016
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,626	$	770	$	856	$	20	$	—	$	836
Securities borrowed or purchased under resale agreements	31,386		11,639		19,747		19,657		—		90
Total	$	33,012	$	12,409	$	20,603	$	19,677	$	—	$	926
Financial Liabilities:
Derivative liabilities	$	1,684	$	1,047	$	637	$	176	$	5	$	456
Securities loaned or sold under repurchase agreements	36,255		11,639		24,616		23,812		—		804
Total	$	37,939	$	12,686	$	25,253	$	23,988	$	5	$	1,260



	December 31, 2015
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,839	$	909	$	930	$	67	$	—	$	863
Securities borrowed or purchased under resale agreements	36,521		5,449		31,072		30,946		—		126
Total	$	38,360	$	6,358	$	32,002	$	31,013	$	—	$	989
Financial Liabilities:
Derivative liabilities	$	1,649	$	872	$	777	$	179	$	—	$	598
Securities loaned or sold under repurchase agreements	34,590		5,449		29,141		28,360		—		781
Total	$	36,239	$	6,321	$	29,918	$	28,539	$	—	$	1,379

The following tables present the gross obligations for securities sold under agreements to repurchase, and securities loaned by remaining contractual maturity and class of collateral pledged as of December 31, 2016 and December 31, 2015:



	December 31, 2016
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	11,419	$	1,523	$	712	$	316	$	13,970
U.S. agency securities	42		30		—		—		72
Other sovereign government obligations	—		—		16		—		16
Asset-backed securities	20		15		66		—		101
Mortgage-backed securities	8,792		4,450		4,750		—		17,992
Corporate bonds	405		800		909		—		2,114
Municipal securities	74		65		299		—		438
Equities	452		275		164		—		891
Total	$	21,204	$	7,158	$	6,916	$	316	$	35,594
Securities loaned:
Corporate bonds	$	8	$	—	$	—	$	—	$	8
Equities	562		—		91		—		653
Total	$	570	$	—	$	91	$	—	$	661



	December 31, 2015
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury	$	8,415	$	2,449	$	2,048	$	—	$	12,912
U.S. agency securities	302		1		—		—		303
Other sovereign government obligations	6		—		—		—		6
Asset-backed securities	113		13		7		—		133
Mortgage-backed securities	6,915		6,800		2,286		400		16,401
Corporate bonds	527		467		408		—		1,402
Municipal securities	25		153		100		—		278
Equities	150		774		178		—		1,102
Total	$	16,453	$	10,657	$	5,027	$	400	$	32,537
Securities loaned:
U.S. Treasury	$	2	$	—	$	—	$	—	$	2
Mortgage-backed securities	—		—		1,026		—		1,026
Equities	549		277		199		—		1,025
Total	$	551	$	277	$	1,225	$	—	$	2,053

The Company enters into reverse repurchase agreements, repurchase agreements and securities borrow and loan transactions. Under these agreements and transactions, the Company either receives or provides collateral. The Company receives collateral in the form of securities in connection with reverse repurchase agreements and securities borrowed transactions. In many cases, the Company is permitted to sell or repledge these securities held as collateral and use the securities to secure repurchase agreements or enter into securities lending transactions. For additional information related to securities pledged and received as collateral, refer to Note 3 to these consolidated financial statements.