Borrowed Funds

12 Months Ended

Dec. 31, 2014

Note 11 Borrowed Funds

The following shows the carrying value of total borrowed funds of $56.8 billion at December 31, 2014 (including adjustments related to purchase accounting, accounting hedges and unamortized original issuance discounts) by remaining contractual maturity:

• 2015: $15.3 billion,

• 2016: $8.4 billion,

• 2017: $10.7 billion,

• 2018: $6.4 billion,

• 2019: $6.9 billion, and

• 2020 and thereafter: $9.1 billion.

Included in the following table are balances of long-term bank notes along with senior and subordinated debt and the related contractual rates and maturity dates at December 31, 2014.

Table 104: Bank Notes, Senior Debt and Subordinated Debt

December 31, 2014 - Dollars in millions			Carrying Value	Stated Rate	Maturity
Bank notes		$	8,574	zero-3.30%	2015-2043
Senior debt			7,176	2.70%-6.70%	2015-2022
Bank notes and senior debt		$	15,750
Subordinated debt				111
	Junior	$	205	.81%	2028
	Other		8,946	.61%-6.88%	2015-2025
Subordinated debt		$	9,151

In the table above, the carrying values for senior debt, subordinated debt and bank notes include basis adjustments of $193 million, $317 million and $20 million, respectively, related to fair value accounting hedges as of December 31, 2014.

The $205 million of junior subordinated debt included in the above table represents the carrying value of debt redeemable prior to maturity. This carrying value and related net discounts of $1 million comprise the $206 million principal amount of junior subordinated debentures that are discussed in Note 12 Capital Securities of a Subsidiary Trust and Perpetual Trust Securities.

Included in borrowed funds are FHLB borrowings of $20.0 billion at December 31, 2014, which are generally collateralized by residential mortgage loans, other mortgage-related loans and commercial mortgage-backed securities. FHLB borrowings have balances that will mature from 2015 – 2030, with interest rates ranging from zero to 7.33%. There were no short-term FHLB advances as of December 31, 2014.

Also included in borrowed funds are repurchase agreements. See Note 22 Commitments and Guarantees for additional information on those agreements. Additionally, certain borrowings are reported at fair value. Refer to Note 7 Fair Value for more information on those borrowings.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details