COLLATERALIZED AGREEMENTS AND FINANCINGS

3 Months Ended

Dec. 31, 2021

COLLATERALIZED AGREEMENTS AND FINANCINGS

Collateralized agreements are comprised of securities purchased under agreements to resell (“reverse repurchase agreements”) and securities borrowed. Collateralized financings are comprised of securities sold under agreements to repurchase (“repurchase agreements”) and securities loaned. We enter into these transactions in order to facilitate client activities, acquire securities to cover short positions and finance certain firm activities. The significant accounting policies governing our collateralized agreements and financings are described in Note 2 of our 2021 Form 10-K.

Our reverse repurchase agreements, repurchase agreements, securities borrowing and securities lending transactions are governed by master agreements that are widely used by counterparties and that may allow for net settlements of payments in the normal course, as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the parties to the transaction. For financial statement purposes, we do not offset our reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned because the conditions for netting as specified by GAAP are not met. Although not offset on the Condensed Consolidated Statements of Financial Condition, these transactions are included in the following table.


	Collateralized agreements						Collateralized financings
$ in millions	Reverse repurchase agreements		Securities borrowed		Total		Repurchase agreements		Securities loaned		Total
December 31, 2021
Gross amounts of recognized assets/liabilities	$	204	$	143	$	347	$	203	$	65	$	268
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition	—		—		—		—		—		—
Net amounts presented on the Condensed Consolidated Statements of Financial Condition	204		143		347		203		65		268
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition	(204)		(139)		(343)		(203)		(62)		(265)
Net amounts	$	—	$	4	$	4	$	—	$	3	$	3
September 30, 2021
Gross amounts of recognized assets/liabilities	$	279	$	201	$	480	$	205	$	72	$	277
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition	—		—		—		—		—		—
Net amounts presented on the Condensed Consolidated Statements of Financial Condition	279		201		480		205		72		277
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition	(279)		(195)		(474)		(205)		(68)		(273)
Net amounts	$	—	$	6	$	6	$	—	$	4	$	4

The total amount of collateral received under reverse repurchase agreements and the total amount of collateral posted under repurchase agreements exceeds the carrying value of these agreements on our Condensed Consolidated Statements of Financial Condition.

Collateral received and pledged

We receive cash and securities as collateral, primarily in connection with reverse repurchase agreements, securities borrowing agreements, derivative transactions and client margin loans. The collateral we receive reduces our credit exposure to individual counterparties.

In many cases, we are permitted to deliver or repledge financial instruments we have received as collateral to satisfy our collateral requirements under our repurchase agreements, securities lending agreements or other secured borrowings, to satisfy deposit requirements with clearing organizations, or to otherwise meet either our or our clients’ settlement requirements.

The following table presents financial instruments at fair value that we received as collateral, were not included on our Condensed Consolidated Statements of Financial Condition, and that were available to be delivered or repledged, along with the balances of such instruments that were delivered or repledged, to satisfy one of our purposes previously described.


$ in millions	December 31, 2021		September 30, 2021
Collateral we received that was available to be delivered or repledged	$	3,548	$	3,429
Collateral that we delivered or repledged	$	821	$	830

Encumbered assets

We pledge certain of our assets to collateralize either repurchase agreements or other secured borrowings, maintain lines of credit, or to satisfy our collateral or settlement requirements with counterparties or clearing organizations who may or may not have the right to deliver or repledge such instruments. The following table presents information about our assets that have been pledged for one of the purposes previously described.


$ in millions	December 31, 2021		September 30, 2021
Had the right to deliver or repledge	$	333	$	368
Did not have the right to deliver or repledge	$	65	$	65
Bank loans, net pledged at the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank of Atlanta	$	5,747	$	5,716

Repurchase agreements, repurchase-to-maturity transactions and securities loaned accounted for as secured borrowings

The following table presents the remaining contractual maturity of repurchase agreements and securities lending transactions accounted for as secured borrowings.


$ in millions	Overnight and continuous		Up to 30 days		30-90 days		Greater than 90 days		Total
December 31, 2021
Repurchase agreements:
Government and agency obligations	$	102	$	—	$	—	$	—	$	102
Agency MBS and agency CMOs	101		—		—		—		101
Total repurchase agreements	203		—		—		—		203
Securities loaned:
Equity securities	65		—		—		—		65
Total collateralized financings	$	268	$	—	$	—	$	—	$	268
September 30, 2021
Repurchase agreements:
Government and agency obligations	$	122	$	—	$	—	$	—	$	122
Agency MBS and agency CMOs	83		—		—		—		83
Total repurchase agreements	205		—		—		—		205
Securities loaned:
Equity securities	72		—		—		—		72
Total collateralized financings	$	277	$	—	$	—	$	—	$	277

As of both December 31, 2021 and September 30, 2021, we did not have any “repurchase-to-maturity” agreements, which are repurchase agreements where a security is transferred under an agreement to repurchase and the maturity date of the repurchase agreement matches the maturity date of the underlying security.