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. For additional information on offsetting arrangements, refer to Note 11 to the consolidated financial statements on pages 169 to 172 in our 2015 Form 10-K.

As of September 30, 2016 and December 31, 2015, the fair value of securities received as collateral where we are permitted to transfer or re-pledge the securities totaled $2.26 billion and $3.05 billion, respectively, and the fair value of the portion that had been transferred or re-pledged as of the same date was $287 million and $262 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:	September 30, 2016								December 31, 2015
(In millions)	Gross Amounts of Recognized Assets⁽¹⁾⁽²⁾		Gross Amounts Offset in Statement of Condition⁽³⁾			Net Amounts of Assets Presented in Statement of Condition			Gross Amounts of Recognized Assets⁽¹⁾		Gross Amounts Offset in Statement of Condition⁽³⁾			Net Amounts of Assets Presented in Statement of Condition
Derivatives:
Foreign exchange contracts	$	8,137	$	(3,936	)	$	4,201		$	11,316	$	(5,896	)	$	5,420
Interest-rate contracts	239		(8		)	231			135		(5		)	130
Other derivative contracts	3		(3		)	—			5		(2		)	3
Cash collateral netting	NA		(929		)	(929		)	N/A		(776		)	(776		)
Total derivatives	$	8,379	$	(4,876	)	$	3,503		$	11,456	$	(6,679	)	$	4,777
Other financial instruments:
Resale agreements and securities borrowing⁽⁴⁾	$	62,733	$	(36,580	)	$	26,153		$	62,522	$	(38,997	)	$	23,525
Total derivatives and other financial instruments	$	71,112	$	(41,456	)	$	29,656		$	73,978	$	(45,676	)	$	28,302

NA: Not applicable.

⁽¹⁾Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.

⁽²⁾Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which are also carried at fair value. Refer to Note 1 to the consolidated financial statements on pages 129 to 132 in our 2015 Form 10-K for additional information on the measurement basis of these instruments.

⁽³⁾Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.

⁽⁴⁾Included in the $26,153 million as of September 30, 2016 were $2,442 million of resale agreements and $23,711 million of collateral provided related to securities borrowing. Included in the $23,525 million as of December 31, 2015 were $3,404 million of resale agreements and $20,121 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 9 for additional information with respect to principal securities finance transactions.



	September 30, 2016										December 31, 2015
			Gross Amounts Not Offset in Statement of Condition										Gross Amounts Not Offset in Statement of Condition
(In millions)	Net Amount of Assets Presented in Statement of Condition		Counterparty Netting			Cash and Securities Received⁽¹⁾			Net Amount⁽²⁾		Net Amount of Assets Presented in Statement of Condition		Counterparty Netting			Cash and Securities Received⁽¹⁾			Net Amount⁽²⁾
Derivatives	$	3,503	$	—		$	(159	)	$	3,344	$	4,777	$	—		$	(405	)	$	4,372
Resale agreements and securities borrowing	26,153		(120		)	(25,783		)	250		23,525		(63		)	(22,812		)	650
Total	$	29,656	$	(120	)	$	(25,942	)	$	3,594	$	28,302	$	(63	)	$	(23,217	)	$	5,022

⁽¹⁾ Includes securities in connection with our securities borrowing transactions.

⁽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:	September 30, 2016								December 31, 2015
(In millions)	Gross Amounts of Recognized Liabilities⁽¹⁾⁽²⁾		Gross Amounts Offset in Statement of Condition⁽³⁾			Net Amounts of Liabilities Presented in Statement of Condition			Gross Amounts of Recognized Liabilities⁽¹⁾		Gross Amounts Offset in Statement of Condition⁽³⁾			Net Amounts of Liabilities Presented in Statement of Condition
Derivatives:
Foreign exchange contracts	$	7,901	$	(3,936	)	$	3,965		$	10,868	$	(5,896	)	$	4,972
Interest-rate contracts	189		(8		)	181			182		(5		)	177
Other derivative contracts	150		(3		)	147			103		(2		)	101
Cash collateral netting	NA		(731		)	(731		)	N/A		(1,118		)	(1,118		)
Total derivatives	$	8,240	$	(4,678	)	$	3,562		$	11,153	$	(7,021	)	$	4,132
Other financial instruments:
Repurchase agreements and securities lending⁽⁴⁾	$	46,363	$	(36,580	)	$	9,783		$	46,766	$	(38,997	)	$	7,769
Total derivatives and other financial instruments	$	54,603	$	(41,258	)	$	13,345		$	57,919	$	(46,018	)	$	11,901

NA: Not applicable.

⁽¹⁾Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.

⁽³⁾Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.

⁽⁴⁾Included in the $9,783 million as of September 30, 2016 were $4,364 million of repurchase agreements and $5,419 million of collateral received related to securities lending. Included in the $7,769 million as of December 31, 2015 were $4,499 million of repurchase agreements and $3,270 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 9 for additional information with respect to principal securities finance transactions.



	September 30, 2016										December 31, 2015
			Gross Amounts Not Offset in Statement of Condition										Gross Amounts Not Offset in Statement of Condition
(In millions)	Net Amount of Liabilities Presented in Statement of Condition		Counterparty Netting			Cash and Securities Provided⁽¹⁾			Net Amount⁽²⁾		Net Amount of Liabilities Presented in Statement of Condition		Counterparty Netting			Cash and Securities Provided⁽¹⁾			Net Amount⁽²⁾
Derivatives	$	3,562	$	—		$	(8	)	$	3,554	$	4,132	$	—		$	(64	)	$	4,068
Repurchase agreements and securities lending	9,783		(120		)	(7,461		)	2,202		7,769		(63		)	(5,287		)	2,419
Total	$	13,345	$	(120	)	$	(7,469	)	$	5,756	$	11,901	$	(63	)	$	(5,351	)	$	6,487

⁽¹⁾ Includes securities provided in connection with our securities lending transactions.

⁽²⁾Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.

The securities transferred under resale and 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 tables summarize our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated:



	Remaining Contractual Maturity of the Agreements
	As of September 30, 2016
(In millions)	Overnight and Continuous		Up to 30 days		30 – 90 days		Total
Repurchase agreements:
U.S. Treasury and agency securities	$	35,399	$	15	$	—	$	35,414
Non-U.S. sovereign debt	—		57		—		57
Total	35,399		72		—		35,471
Securities lending transactions:
Corporate debt securities	63		—		—		63
Equity securities	9,526		—		894		10,420
Non-U.S. sovereign debt	409		—		—		409
Total	9,998		—		894		10,892
Gross amount of recognized liabilities for repurchase agreements and securities lending	$	45,397	$	72	$	894	$	46,363



	Remaining Contractual Maturity of the Agreements
	As of December 31, 2015
(In millions)	Overnight and Continuous		Up to 30 days		30 – 90 days		Total
Repurchase agreements:
U.S. Treasury and agency securities	$	37,157	$	5	$	—	$	37,162
Non-U.S. sovereign debt	—		97		—		97
Total	37,157		102		—		37,259
Securities lending transactions:
Corporate debt securities	1		—		—		1
Equity securities	8,502		—		1,002		9,504
Non-U.S. sovereign debt	2		—		—		2
Total	8,505		—		1,002		9,507
Gross amount of recognized liabilities for repurchase agreements and securities lending	$	45,662	$	102	$	1,002	$	46,766