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Assets and Liabilities Subject to Offsetting
 9 Months Ended
Sep. 30, 2013
Assets and Liabilities Subject to Offsetting [Abstract]  
Assets and Liabilities Subject to Offsetting [Text Block]
Assets and Liabilities Subject to Offsetting
The Bank has derivatives and securities purchased under agreements to resell that are subject to enforceable master netting agreements or similar arrangements. For purposes of reporting derivative assets and derivative liabilities, the Bank offsets the fair value amounts recognized for derivative instruments (including the right to reclaim cash collateral and the obligation to return cash collateral) where a legally enforceable right of setoff exists. The Bank did not have any liabilities that were eligible to offset its securities purchased under agreements to resell (i.e., securities sold under agreements to repurchase) as of September 30, 2013 or December 31, 2012.
The Bank's derivative transactions are executed either bilaterally or, if required on and after June 10, 2013, cleared through a third-party central clearinghouse. The Bank has entered into master agreements with each of its bilateral derivative counterparties that provide for the netting of all transactions with each of these counterparties. Under its master agreements with its non-member bilateral derivative counterparties, collateral is delivered (or returned) daily when certain thresholds (ranging from $100,000 to $500,000) are met. The Bank offsets the fair value amounts recognized for bilaterally traded derivatives executed with the same counterparty, including any cash collateral remitted to or received from the counterparty. When entering into derivative transactions with its members, the Bank requires the member to post eligible collateral in an amount equal to the sum of the net market value of the member’s derivative transactions with the Bank (if the value is positive to the Bank) plus a percentage of the notional amount of any interest rate swaps, with market values determined on at least a monthly basis. Eligible collateral for derivative transactions with members consists of collateral that is eligible to secure advances and other obligations under the member's Advances and Security Agreement with the Bank. The Bank is not required to pledge collateral to its members to secure derivative positions. For cleared derivatives, all transactions with each clearing member of each clearinghouse are netted pursuant to legally enforceable setoff rights. Cleared derivatives are subject to initial and variation margin requirements established by the clearinghouse and its clearing members. Collateral associated with cleared derivatives (i.e., initial and variation margin) is delivered (or returned) daily and is not subject to any maximum unsecured thresholds. The Bank offsets the fair value amounts recognized for cleared derivatives transacted with each clearing member of each clearinghouse, including cash collateral pledged or received.
The following table presents derivative instruments and securities purchased under agreements to resell with the legal right of offset, including the related collateral received from or pledged to counterparties as of September 30, 2013 and December 31, 2012 (in thousands).
 
 
Gross Amounts of Recognized Financial Instruments
 
Gross Amounts Offset in the Statement of Condition
 
Net Amounts Presented in the Statement of Condition
 
Collateral Not Offset in the Statement of Condition (1)
 
Net Unsecured Amount
September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives
 
 
 
 
 
 
  
 
 
 
Bilateral derivatives
 
$
80,724

 
$
(69,567
)
 
$
11,157

 
$
(5,394
)
(2) 
$
5,763

Cleared derivatives
 
1,534

 
1,750

 
3,284

 
—

 
3,284

Total derivatives
 
82,258

 
(67,817
)
 
14,441

 
(5,394
)
 
9,047

Security purchased under agreement to resell
 
500,000

 
—

 
500,000

 
(500,000
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
582,258

 
$
(67,817
)
 
$
514,441

 
$
(505,394
)
 
$
9,047

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives
 
 
 
 
 
 
  
 
 
 
Bilateral derivatives
 
$
969,350

 
$
(959,354
)
 
$
9,996

 
$
—

 
$
9,996

Cleared derivatives
 
550

 
(550
)
 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Total derivatives
 
$
969,900

 
$
(959,904
)
 
$
9,996

 
$
—

 
$
9,996

 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bilateral derivatives
 
$
118,714

 
$
(104,767
)
 
$
13,947

 
$
(10,583
)
(3) 
$
3,364

Securities purchased under agreements to resell
 
3,000,000

 
—

 
3,000,000

 
(3,000,000
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
3,118,714

 
$
(104,767
)
 
$
3,013,947

 
$
(3,010,583
)
 
$
3,364

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bilateral derivatives
 
$
1,344,588

 
$
(1,333,320
)
 
$
11,268

 
$
—

 
$
11,268

_____________________________
(1) 
Any overcollateralization at an individual clearinghouse/clearing member or bilateral counterparty level is not included in the determination of the net unsecured amount.
(2) 
Consists of $1,664,000 of securities pledged by a non-member bilateral counterparty and $3,730,000 of collateral pledged by member counterparties.
(3) 
Consists of $3,601,000 of securities pledged by a non-member bilateral counterparty and $6,982,000 of collateral pledged by member counterparties.