FEDERAL FUNDS, SECURITIES BORROWED, LOANED AND SUBJECT TO REPURCHASE AGREEMENTS

For additional information on the Company’s resale and repurchase agreements and securities borrowing and lending agreements, see Note 11 to the Consolidated Financial Statements in Citi’s 2016 Annual Report on Form 10-K.

Federal funds sold and securities borrowed or purchased under agreements to resell, at their respective carrying values, consisted of the following:



In millions of dollars	September 30, 2017		December 31, 2016
Federal funds sold	$	20	$	—
Securities purchased under agreements to resell	139,203		131,473
Deposits paid for securities borrowed	113,385		105,340
Total⁽¹⁾	$	252,608	$	236,813

Federal funds purchased and securities loaned or sold under agreements to repurchase, at their respective carrying values, consisted of the following:



In millions of dollars	September 30, 2017		December 31, 2016
Federal funds purchased	$	388	$	178
Securities sold under agreements to repurchase	145,280		125,685
Deposits received for securities loaned	15,614		15,958
Total⁽¹⁾	$	161,282	$	141,821

(1)

The above tables do not include securities-for-securities lending transactions of $14.4 billion and $9.3 billion at September 30, 2017 and December 31, 2016, respectively, where the Company acts as lender and receives securities that can be sold or pledged as collateral. In these transactions, the Company recognizes the securities received at fair value within Other assets and the obligation to return those securities as a liability within Brokerage payables.

It is the Company’s policy to take possession of the underlying collateral, monitor its market value relative to the amounts due under the agreements and, when necessary, require prompt transfer of additional collateral in order to maintain contractual margin protection. For resale and repurchase agreements, when necessary, the Company posts additional collateral in order to maintain contractual margin protection.

A substantial portion of the resale and repurchase agreements is recorded at fair value, as described in Notes 20 and 21 to the Consolidated Financial Statements. The remaining portion is carried at the amount of cash initially advanced or received, plus accrued interest, as specified in the respective agreements.

A substantial portion of securities borrowing and lending agreements is recorded at the amount of cash advanced or received. The remaining portion is recorded at fair value as the Company elected the fair value option for certain securities borrowed and loaned portfolios, as described in Note 21 to the Consolidated Financial Statements. With respect to securities loaned, the Company receives cash collateral in an amount generally in excess of the market value of the securities loaned. The Company monitors the market value of securities borrowed and securities loaned on a daily basis and obtains or posts additional collateral in order to maintain contractual margin protection.

The following tables present the gross and net resale and repurchase agreements and securities borrowing and lending

agreements and the related offsetting amount permitted under ASC-210-20-45. The tables also include amounts related to financial instruments that are not permitted to be offset under ASC-210-20-45, but would be eligible for offsetting to the extent that an event of default occurred and a legal opinion supporting enforceability of the offsetting rights has been obtained. Remaining exposures continue to be secured by financial collateral, but the Company may not have sought or been able to obtain a legal opinion evidencing enforceability of the offsetting right.



	As of September 30, 2017
In millions of dollars	Gross amounts of recognized assets		Gross amounts offset on the Consolidated Balance Sheet⁽¹⁾		Net amounts of assets included on the Consolidated Balance Sheet⁽²⁾		Amounts not offset on the Consolidated Balance Sheet but eligible for offsetting upon counterparty default⁽³⁾		Net amounts⁽⁴⁾
Securities purchased under agreements to resell	$	207,485	$	68,282	$	139,203	$	105,439	$	33,764
Deposits paid for securities borrowed	113,385		—		113,385		23,136		90,249
Total	$	320,870	$	68,282	$	252,588	$	128,575	$	124,013



In millions of dollars	Gross amounts of recognized liabilities		Gross amounts offset on the Consolidated Balance Sheet⁽¹⁾		Net amounts of liabilities included on the Consolidated Balance Sheet⁽²⁾		Amounts not offset on the Consolidated Balance Sheet but eligible for offsetting upon counterparty default⁽³⁾		Net amounts⁽⁴⁾
Securities sold under agreements to repurchase	$	213,562	$	68,282	$	145,280	$	67,974	$	77,306
Deposits received for securities loaned	15,614		—		15,614		4,359		11,255
Total	$	229,176	$	68,282	$	160,894	$	72,333	$	88,561



	As of December 31, 2016
In millions of dollars	Gross amounts of recognized assets		Gross amounts offset on the Consolidated Balance Sheet⁽¹⁾		Net amounts of assets included on the Consolidated Balance Sheet⁽²⁾		Amounts not offset on the Consolidated Balance Sheet but eligible for offsetting upon counterparty default⁽³⁾		Net amounts⁽⁴⁾
Securities purchased under agreements to resell	$	176,284	$	44,811	$	131,473	$	102,874	$	28,599
Deposits paid for securities borrowed	105,340		—		105,340		16,200		89,140
Total	$	281,624	$	44,811	$	236,813	$	119,074	$	117,739



In millions of dollars	Gross amounts of recognized liabilities		Gross amounts offset on the Consolidated Balance Sheet⁽¹⁾		Net amounts of liabilities included on the Consolidated Balance Sheet⁽²⁾		Amounts not offset on the Consolidated Balance Sheet but eligible for offsetting upon counterparty default⁽³⁾		Net amounts⁽⁴⁾
Securities sold under agreements to repurchase	$	170,496	$	44,811	$	125,685	$	63,517	$	62,168
Deposits received for securities loaned	15,958		—		15,958		3,529		12,429
Total	$	186,454	$	44,811	$	141,643	$	67,046	$	74,597


(1)	Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45.


(2)	The total of this column for each period excludes Federal funds sold/purchased. See tables above.


(3)	Includes financial instruments subject to enforceable master netting agreements that are not permitted to be offset under ASC 210-20-45, but would be eligible for offsetting to the extent that an event of default has occurred and a legal opinion supporting enforceability of the offsetting right has been obtained.


(4)	Remaining exposures continue to be secured by financial collateral, but the Company may not have sought or been able to obtain a legal opinion evidencing enforceability of the offsetting right.

The following tables present the gross amount of liabilities associated with repurchase agreements and securities lending agreements, by remaining contractual maturity:



	As of September 30, 2017
In millions of dollars	Open and overnight		Up to 30 days		31–90 days		Greater than 90 days		Total
Securities sold under agreements to repurchase	$	97,624	$	54,810	$	23,997	$	37,131	$	213,562
Deposits received for securities loaned	11,980		342		2,070		1,222		15,614
Total	$	109,604	$	55,152	$	26,067	$	38,353	$	229,176



	As of December 31, 2016
In millions of dollars	Open and overnight		Up to 30 days		31–90 days		Greater than 90 days		Total
Securities sold under agreements to repurchase	$	79,740	$	50,399	$	19,396	$	20,961	$	170,496
Deposits received for securities loaned	10,813		2,169		2,044		932		15,958
Total	$	90,553	$	52,568	$	21,440	$	21,893	$	186,454

The following tables present the gross amount of liabilities associated with repurchase agreements and securities lending agreements, by class of underlying collateral:



	As of September 30, 2017
In millions of dollars	Repurchase agreements		Securities lending agreements		Total
U.S. Treasury and federal agency securities	$	67,622	$	—	$	67,622
State and municipal securities	1,031		5		1,036
Foreign government securities	92,113		221		92,334
Corporate bonds	19,731		472		20,203
Equity securities	11,910		14,301		26,211
Mortgage-backed securities	12,590		—		12,590
Asset-backed securities	5,373		—		5,373
Other	3,192		615		3,807
Total	$	213,562	$	15,614	$	229,176



	As of December 31, 2016
In millions of dollars	Repurchase agreements		Securities lending agreements		Total
U.S. Treasury and federal agency securities	$	66,263	$	—	$	66,263
State and municipal securities	334		—		334
Foreign government securities	52,988		1,390		54,378
Corporate bonds	17,164		630		17,794
Equity securities	12,206		13,913		26,119
Mortgage-backed securities	11,421		—		11,421
Asset-backed securities	5,428		—		5,428
Other	4,692		25		4,717
Total	$	170,496	$	15,958	$	186,454