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Offsetting Arrangements
 6 Months Ended
Jun. 30, 2015
Offsetting [Abstract]  
Offsetting Arrangements
Offsetting Arrangements
 We manage credit and counterparty risk by entering into enforceable netting agreements and other collateral arrangements with counterparties to derivative contracts and secured financing transactions, including resale and repurchase agreements, and principal securities borrowing and lending agreements. These netting agreements mitigate our counterparty credit risk by providing for a single net settlement with a counterparty of all financial transactions covered by the agreement in an event of default as defined under such agreement. In limited cases, a netting agreement may also provide for the periodic netting of settlement payments with respect to multiple different transaction types in the normal course of business. Refer to note 17 on pages 179 to 181 in the 2014 Form 10-K for information on offsetting arrangements and our related accounting policy.
As of June 30, 2015 and December 31, 2014, the fair value of securities received as collateral where we are permitted to transfer or re-pledge the securities totaled $4.57 billion and $2.60 billion, respectively, and the fair value of the portion that had been transferred or re-pledged as of the same date was $2.06 billion and $125 million, respectively.
The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated:
Assets:
 
June 30, 2015
 
December 31, 2014
(In millions)
 
Gross Amounts of Recognized Assets(1)
 
Gross Amounts Offset in Statement of Condition(2)
 
Net Amounts of Assets Presented in Statement of Condition
 
Gross Amounts of Recognized Assets(1)
 
Gross Amounts Offset in Statement of Condition(2)
 
Net Amounts of Assets Presented in Statement of Condition
Derivatives:
 
 
 
 
 
 
 
 
Foreign exchange contracts
 
$
10,539

 
$
(4,698
)
 
$
5,841

 
$
15,135

 
$
(6,275
)
 
$
8,860

Interest-rate contracts
 
49

 
(21
)
 
28

 
77

 
(21
)
 
56

Equity derivative contracts
 
2

 
(2
)
 
—

 
—

 
—

 
—

Other derivative contracts
 
2

 
(2
)
 
—

 
2

 
(1
)
 
1

Cash collateral netting
 
—

 
(701
)
 
(701
)
 
—

 
(983
)
 
(983
)
Total derivatives
 
$
10,592

 
$
(5,424
)
 
$
5,168

 
$
15,214

 
$
(7,280
)
 
$
7,934

Other financial instruments:
 
 
 
 
 
 
 
 
Resale agreements and securities borrowing(3)
 
$
60,204

 
$
(33,810
)
 
$
26,394

 
$
47,488

 
$
(29,157
)
 
$
18,331

Total derivatives and other financial instruments
 
$
70,796

 
$
(39,234
)
 
$
31,562

 
$
62,702

 
$
(36,437
)
 
$
26,265

 
 
 
 
 
(1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.
(2) Amounts subject to netting arrangements which have been determined to be legally enforceable.
(3) Included in the $26,394 million as of June 30, 2015 were $4,447 million of resale agreements and $21,947 million of collateral provided related to securities borrowing. Included in the $18,331 million as of December 31, 2014 were $2,390 million of resale agreements and $15,941 million of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to note 7 for additional information with respect to principal securities finance transactions.
 
 
June 30, 2015
 
December 31, 2014
 
 
 
 
Gross Amounts Not Offset in Statement of Condition(1)
 
 
 
 
 
Gross Amounts Not Offset in Statement of Condition(1)
 
 
(In millions)
 
Net Amount of Assets Presented in Statement of Condition
 
Counterparty Netting
 
Collateral Received
 
Net Amount(2)
 
Net Amount of Assets Presented in Statement of Condition
 
Counterparty Netting
 
Collateral Received
 
Net Amount(2)
Derivatives
 
$
5,168

 
$
—

 
$
(1,561
)
 
$
3,607

 
$
7,934

 
$
—

 
$
(1,490
)
 
$
6,444

Resale agreements and securities borrowing
 
26,394

 
(87
)
 
(26,178
)
 
129

 
18,331

 
(128
)
 
(18,157
)
 
46

Total
 
$
31,562

 
$
(87
)
 
$
(27,739
)
 
$
3,736

 
$
26,265

 
$
(128
)
 
$
(19,647
)
 
$
6,490

 
 
 
 
 
(1) Amounts subject to netting arrangements which have been determined to be legally enforceable.
(2) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.
The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated:
Liabilities:
 
June 30, 2015
 
December 31, 2014
(In millions)
 
Gross Amounts of Recognized Liabilities(1)
 
Gross Amounts Offset in Statement of Condition(2)
 
Net Amounts of Liabilities Presented in Statement of Condition
 
Gross Amounts of Recognized Liabilities(1)
 
Gross Amounts Offset in Statement of Condition(2)
 
Net Amounts of Liabilities Presented in Statement of Condition
Derivatives:
 
 
 
 
 
 
 
 
Foreign exchange contracts
 
$
10,003

 
$
(4,698
)
 
$
5,305

 
$
14,925

 
$
(6,275
)
 
$
8,650

Interest-rate contracts
 
219

 
(21
)
 
198

 
239

 
(20
)
 
219

Equity derivative contracts
 
1

 
(1
)
 
—

 
—

 
—

 
—

Other derivative contracts
 
106

 
(2
)
 
104

 
70

 
(1
)
 
69

Cash collateral netting
 
—

 
(1,241
)
 
(1,241
)
 
—

 
(2,630
)
 
(2,630
)
Total derivatives
 
$
10,329

 
$
(5,963
)
 
$
4,366

 
$
15,234

 
$
(8,926
)
 
$
6,308

Other financial instruments:
 
 
 
 
 
 
 
 
Repurchase agreements and securities lending(3)
 
$
49,223

 
$
(33,810
)
 
$
15,413

 
$
44,562

 
$
(29,157
)
 
$
15,405

Total derivatives and other financial instruments
 
$
59,552

 
$
(39,773
)
 
$
19,779

 
$
59,796

 
$
(38,083
)
 
$
21,713

 
 
 
 
 
(1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.
(2) Amounts subject to netting arrangements which have been determined to be legally enforceable.
(3) Included in the $15,413 million as of June 30, 2015 were $10,978 million of repurchase agreements and $4,435 million of collateral received related to securities lending. Included in the $15,405 million as of December 31, 2014 were $8,925 million of repurchase agreements and $6,480 million of collateral received related to securities lending. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. Refer to note 7 for additional information with respect to principal securities finance transactions.
 
 
June 30, 2015
 
December 31, 2014
 
 
 
 
Gross Amounts Not Offset in Statement of Condition(1)
 
 
 
 
 
Gross Amounts Not Offset in Statement of Condition(1)
 
 
(In millions)
 
Net Amount of Liabilities Presented in Statement of Condition
 
Counterparty Netting
 
Collateral Provided
 
Net Amount(2)
 
Net Amount of Liabilities Presented in Statement of Condition
 
Counterparty Netting
 
Collateral Provided
 
Net Amount(2)
Derivatives
 
$
4,366

 
$
—

 
$
(221
)
 
$
4,145

 
$
6,308

 
$
—

 
$
(19
)
 
$
6,289

Repurchase agreements and securities lending
 
15,413

 
(87
)
 
(13,066
)
 
2,260

 
15,405

 
(128
)
 
(13,872
)
 
1,405

Total
 
$
19,779

 
$
(87
)
 
$
(13,287
)
 
$
6,405

 
$
21,713

 
$
(128
)
 
$
(13,891
)
 
$
7,694

 
 
 
 
 
(1) Amounts subject to netting arrangements which have been determined to be legally enforceable.
(2) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.
The securities transferred under repurchase and reverse repurchase agreements typically are U.S. Treasury, agency and agency mortgage-backed securities. In our principal securities borrowing and lending arrangements, the securities transferred in exchange for the collateral are predominantly equity securities and some corporate debt securities. The fair value of the securities transferred may increase in value to an amount greater than the amount received under our repurchase and securities lending arrangements, which exposes the Company with counterparty risk. We require the review of the price of the underlying securities in relation to the carrying value of the repurchase agreements and securities lending arrangements on a daily basis and when appropriate, adjust the cash or security to be obtained or returned to counterparties that is reflective of the required collateral levels.
The following table summarizes our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of June 30, 2015:
 
 
June 30, 2015
 
 
Remaining Contractual Maturity of the Agreements
(In millions)
 
Overnight and Continuous
 
Up to 30 days
 
30 – 90 days
 
Total
Repurchase agreements
 
 
 
 
 
 
 
 
US Treasury and agency securities
 
$
41,684

 
$
14

 
$
—

 
$
41,698

Non-US sovereign debt
 
—

 
308

 
—

 
308

Total
 
$
41,684

 
$
322

 
$
—

 
$
42,006

Securities lending transactions
 
 
 
 
 
 
 
 
Corporate debt securities
 
1

 
—

 
—

 
1

Equity securities
 
6,162

 
—

 
1,054

 
7,216

Total
 
$
6,163

 
$
—

 
$
1,054

 
$
7,217

Gross amount of recognized liabilities for repurchase agreements and securities lending
 
$
47,847

 
$
322

 
$
1,054

 
$
49,223