Securities Financing Arrangements

The Company enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned transactions. The Company executes these transactions to facilitate customer match-book activity, cover short positions and fund the Company's trading inventory. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with counterparties. The relevant agreements allow for the efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. Under these agreements and transactions, the Company either receives or provides collateral. The Company receives collateral in the form of securities in connection with reverse repurchase agreements and securities borrowed transactions. In many cases, the Company is permitted to sell or repledge these securities held as collateral and use the securities to secure repurchase agreements or enter into securities lending transactions. In certain cases the Company may agree for collateral to be posted to a third party custodian under a tri-party arrangement that enables the Company to take control of such collateral in the event of a counterparty default. Default events generally include, among other things, failure to pay, insolvency or bankruptcy of a counterparty. For additional information related to securities pledged and received as collateral, refer to Note 2 to these Consolidated Financial Statements.

The following tables present the gross obligations for securities sold under agreements to repurchase and securities loaned by remaining contractual maturity and class of collateral pledged as of June 30, 2018 and December 31, 2017.



	June 30, 2018
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	11,769	$	250	$	1,409	$	365	$	13,793
U.S. government-sponsored agency securities	92		—		—		—		92
Money market securities	2		—		26		—		28
Mortgage-backed securities	9,011		3,872		6,332		750		19,965
Corporate bonds	1,044		142		1,134		—		2,320
State and municipal securities	249		21		264		—		534
Equity securities	113		106		239		—		458
Total	$	22,280	$	4,391	$	9,404	$	1,115	$	37,190
Securities loaned:
U.S. Treasury securities	$	—	$	219	$	—	$	—	$	219
Equity securities	672		127		46		—		845
Total	$	672	$	346	$	46	$	—	$	1,064



	December 31, 2017
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	8,244	$	2,370	$	1,046	$	1,158	$	12,818
U.S. government-sponsored agency securities	115		38		63		—		216
Other sovereign government obligations	—		—		4		—		4
Money market securities	1		—		6		—		7
Asset-backed securities	32		—		164		—		196
Mortgage-backed securities	8,322		4,972		5,859		250		19,403
Corporate bonds	580		620		1,125		—		2,325
State and municipal securities	283		—		276		—		559
Equity securities	416		376		189		—		981
Total	$	17,993	$	8,376	$	8,732	$	1,408	$	36,509
Securities loaned:
Corporate bonds	$	—	$	322	$	—	$	—	$	322
Equity securities	446		10		101		—		557
Total	$	446	$	332	$	101	$	—	$	879

Offsetting Financial Assets and Liabilities

The Company primarily enters into derivative contracts, repurchase agreements and securities lending agreements with counterparties utilizing standard International Swaps and Derivatives Association Master Agreements, Master Repurchase Agreements, and Master Securities Lending Agreements, respectively. These agreements generally establish the terms and conditions of the transactions, including a legal right to set-off amounts payable and receivable between the Company and a counterparty, regardless of whether or not such amounts have matured or have contingency features.

The following tables present the offsetting of financial assets and liabilities as of June 30, 2018 and December 31, 2017.



	June 30, 2018
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	807	$	331	$	476	$	14	$	—	$	462
Securities borrowed or purchased under resale agreements	32,723		12,675		20,048		19,953		—		95
Total	$	33,530	$	13,006	$	20,524	$	19,967	$	—	$	557
Financial Liabilities:
Derivative liabilities	$	934	$	336	$	598	$	86	$	—	$	512
Securities loaned or sold under repurchase agreements	38,254		12,675		25,579		24,773		—		806
Total	$	39,188	$	13,011	$	26,177	$	24,859	$	—	$	1,318



	December 31, 2017
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,322	$	607	$	715	$	25	$	—	$	690
Securities borrowed or purchased under resale agreements	31,845		10,951		20,894		20,816		—		78
Total	$	33,167	$	11,558	$	21,609	$	20,841	$	—	$	768
Financial Liabilities:
Derivative liabilities	$	1,127	$	620	$	507	$	142	$	—	$	365
Securities loaned or sold under repurchase agreements	37,388		10,951		26,437		25,639		—		798
Total	$	38,515	$	11,571	$	26,944	$	25,781	$	—	$	1,163