Securities Financing Activities

3 Months Ended

Mar. 31, 2019

Securities Financing Transactions Disclosures [Abstract]

Securities financing activities

For a discussion of accounting policies relating to securities financing activities, refer to Note 11 of JPMorgan Chase’s 2018 Form 10-K. For further information regarding securities borrowed and securities lending agreements for which the fair value option has been elected, refer to Note 3. For further information regarding assets pledged and collateral received in securities financing agreements, refer to Note 23.

The table below summarizes the gross and net amounts of the Firm’s securities financing agreements as of March 31, 2019 and December 31, 2018. When the Firm has obtained an appropriate legal opinion with respect to a master netting agreement with a counterparty and where other relevant netting criteria under U.S. GAAP are met, the Firm nets, on the Consolidated balance sheets, the balances

outstanding under its securities financing agreements with the same counterparty. In addition, the Firm exchanges securities and/or cash collateral with its counterparty to reduce the economic exposure with the counterparty, but such collateral is not eligible for net Consolidated balance sheet presentation. Where the Firm has obtained an appropriate legal opinion with respect to the counterparty master netting agreement, such collateral, along with securities financing balances that do not meet all these relevant netting criteria under U.S. GAAP, is presented in the table below as “Amounts not nettable on the Consolidated balance sheets,” and reduces the “Net amounts” presented. Where a legal opinion has not been either sought or obtained, the securities financing balances are presented gross in the “Net amounts” below.



	March 31, 2019
(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets			Amounts presented on the Consolidated balance sheets^(b)		Amounts not nettable on the Consolidated balance sheets^(c)			Net amounts^(d)
Assets
Securities purchased under resale agreements	$	758,505	$	(459,365	)	$	299,140	$	(284,790	)		$	14,350
Securities borrowed	147,066		(23,880		)	123,186		(86,241		)		36,945
Liabilities
Securities sold under repurchase agreements	$	667,703	$	(459,365	)	$	208,338	$	(190,697	)		$	17,641
Securities loaned and other^(a)	40,722		(23,880		)	16,842		(16,732		)		110



	December 31, 2018
(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets			Amounts presented on the Consolidated balance sheets^(b)		Amounts not nettable on the Consolidated balance sheets^(c)			Net amounts^(d)
Assets
Securities purchased under resale agreements	$	691,116	$	(369,612	)	$	321,504	$	(308,854	)		$	12,650
Securities borrowed	132,955		(20,960		)	111,995		(79,747		)		32,248
Liabilities
Securities sold under repurchase agreements	$	541,587	$	(369,612	)	$	171,975	$	(149,125	)		$	22,850
Securities loaned and other^(a)	33,700		(20,960		)	12,740		(12,358		)		382


(a)	Includes securities-for-securities lending agreements of $3.3 billion at March 31, 2019 and December 31, 2018, accounted for at fair value, where the Firm is acting as lender. These amounts are presented within accounts payable and other liabilities in the Consolidated balance sheets.

(b)

Includes securities financing agreements accounted for at fair value. At March 31, 2019 and December 31, 2018, included securities purchased under resale agreements of $14.0 billion and $13.2 billion, respectively; securities sold under repurchase agreements of $971 million and $935 million, respectively; and securities borrowed of $5.6 billion and $5.1 billion, respectively. There were no securities loaned accounted for at fair value in either period.


(c)	In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the amounts reported in this column are limited to the related net asset or liability with that counterparty.

(d)

Includes securities financing agreements that provide collateral rights, but where an appropriate legal opinion with respect to the master netting agreement has not been either sought or obtained. At March 31, 2019 and December 31, 2018, included $8.2 billion and $7.9 billion, respectively, of securities purchased under resale agreements; $34.5 billion and $30.3 billion, respectively, of securities borrowed; $15.9 billion and $21.5 billion, respectively, of securities sold under repurchase agreements; and $46 million and $25 million, respectively, of securities loaned and other.

The tables below present as of March 31, 2019, and December 31, 2018 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements.



	Gross liability balance
	March 31, 2019				December 31, 2018
(in millions)	Securities sold under repurchase agreements		Securities loaned and other		Securities sold under repurchase agreements		Securities loaned and other
Mortgage-backed securities
U.S. government agencies	$	56,156	$	—	$	28,811	$	—
Residential - nonagency	1,679		—		2,165		—
Commercial - nonagency	1,572		—		1,390		—
U.S. Treasury and government agencies	387,049		13		323,078		69
Obligations of U.S. states and municipalities	1,079		—		1,150		—
Non-U.S. government debt	189,092		3,163		154,900		4,313
Corporate debt securities	14,348		953		13,898		428
Asset-backed securities	2,734		—		3,867		—
Equity securities	13,994		36,593		12,328		28,890
Total	$	667,703	$	40,722	$	541,587	$	33,700



	Remaining contractual maturity of the agreements
	Overnight and continuous						Greater than 90 days
March 31, 2019 (in millions)	Overnight and continuous		Up to 30 days		30 – 90 days		Greater than 90 days		Total
Total securities sold under repurchase agreements	$	354,509	$	175,020	$	77,551	$	60,623	$	667,703
Total securities loaned and other	31,657		943		834		7,288		40,722



	Remaining contractual maturity of the agreements
	Overnight and continuous						Greater than 90 days
December 31, 2018 (in millions)	Overnight and continuous		Up to 30 days		30 – 90 days		Greater than 90 days		Total
Total securities sold under repurchase agreements	$	247,579	$	174,971	$	71,637	$	47,400	$	541,587
Total securities loaned and other	28,402		997		2,132		2,169		33,700

Transfers not qualifying for sale accounting

At March 31, 2019, and December 31, 2018, the Firm held $1.7 billion and $2.1 billion, respectively, of financial assets for which the rights have been transferred to third parties; however, the transfers did not qualify as a sale in accordance with U.S. GAAP. These transfers have been recognized as collateralized financing transactions. The transferred assets are recorded in trading assets and loans, and the corresponding liabilities are recorded predominantly in short-term borrowings on the Consolidated balance sheets. The prior period amount has been revised to conform with the current period presentation.