4. Trading Assets and Liabilities

Trading assets and liabilities are summarized in the following table.


	September 30,		December 31,
	2011		2010

	(in millions)

Trading assets:
U.S. Treasury	$	1,035	$	1,874
U.S. Government agency		140		62
U.S. Government sponsored enterprises⁽¹⁾		4		632
Asset-backed securities		997		1,148
Corporate and foreign bonds⁽²⁾		12,495		5,897
Other securities		40		52
Precious metals		17,035		16,725
Fair value of derivatives		8,697		6,012

	$	40,443	$	32,402

Trading liabilities:
Securities sold, not yet purchased	$	487	$	212
Payables for precious metals		6,704		5,326
Fair value of derivatives		5,833		4,990

	$	13,024	$	10,528


⁽¹⁾		Includes mortgage-backed securities of $4 million and $598 million issued or guaranteed by the Federal National Mortgage Association (“FNMA”) at September 30, 2011 and December 31, 2010, respectively, and $34 million issued or guaranteed by the Federal Home Loan Mortgage Corporation (“FHLMC”) at December 31, 2010.

⁽²⁾		There were no foreign bonds issued by the governments of Portugal, Ireland, Italy, Greece or Spain at either September 30, 2011 or December 31, 2010.

At September 30, 2011 and December 31, 2010, the fair value of derivatives included in trading assets has been reduced by $5 billion and $3.1 billion, respectively, relating to amounts recognized for the obligation to return cash collateral received under master netting agreements with derivative counterparties.

At September 30, 2011 and December 31, 2010, the fair value of derivatives included in trading liabilities has been reduced by $8.1 billion and $5.8 billion, respectively, relating to amounts recognized for the right to reclaim cash collateral paid under master netting agreements with derivative counterparties.