Securities Financing Arrangements

The Company enters into repurchase agreements and securities lending agreements 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 in the form of securities. 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, see Note 2 "Securities" 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 at March 31, 2019 and December 31, 2018.



	March 31, 2019
(Dollars in millions)	Overnight and Continuous		Up to 30 Days		31 - 90 Days		Greater than 90 Days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	9,996	$	3,726	$	1,840	$	834	$	16,396
U.S. government-sponsored agency securities	99		2		41		—		142
Other sovereign government obligations	—		—		3		—		3
Money market securities	—		—		307		—		307
Mortgage-backed securities	5,919		2,510		6,622		600		15,651
Corporate bonds	1,285		43		1,037		—		2,365
State and municipal securities	503		—		48		—		551
Equity securities	307		7		256		—		570
Total	$	18,109	$	6,288	$	10,154	$	1,434	$	35,985
Securities loaned:
Corporate bonds	$	10	$	—	$	—	$	—	$	10
U.S. Treasury securities	151		—		—		—		151
Equity securities	282		251		—		—		533
Total	$	443	$	251	$	—	$	—	$	694



	December 31, 2018
(Dollars in millions)	Overnight and Continuous		Up to 30 Days		31 - 90 Days		Greater than 90 Days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	9,416	$	2,945	$	2,991	$	335	$	15,687
U.S. government-sponsored agency securities	264		—		55		—		319
Money market securities	—		—		49		—		49
Asset-backed securities	—		—		282		—		282
Mortgage-backed securities	9,803		1,640		7,569		—		19,012
Corporate bonds	682		130		1,227		—		2,039
State and municipal securities	115		245		188		—		548
Equity securities	387		220		255		—		862
Total	$	20,667	$	5,180	$	12,616	$	335	$	38,798
Securities loaned:
Corporate bonds	$	1	$	—	$	—	$	—	$	1
Equity securities	92		—		—		—		92
Total	$	93	$	—	$	—	$	—	$	93

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 and Credit Support Annex 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 at March 31, 2019 and December 31, 2018.



	March 31, 2019
							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	$	1,025	$	351	$	674	$	17	$	—	$	657
Securities borrowed or purchased under resale agreements	32,114		9,254		22,860		22,769		—		91
Total	$	33,139	$	9,605	$	23,534	$	22,786	$	—	$	748
Financial Liabilities:
Derivative liabilities	$	705	$	323	$	382	$	89	$	1	$	292
Securities loaned or sold under repurchase agreements	36,679		9,254		27,425		26,594		—		831
Total	$	37,384	$	9,577	$	27,807	$	26,683	$	1	$	1,123



	December 31, 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	$	871	$	354	$	517	$	14	$	—	$	503
Securities borrowed or purchased under resale agreements	33,974		11,606		22,368		22,291		—		77
Total	$	34,845	$	11,960	$	22,885	$	22,305	$	—	$	580
Financial Liabilities:
Derivative liabilities	$	804	$	322	$	482	$	69	$	—	$	413
Securities loaned or sold under repurchase agreements	38,891		11,606		27,285		26,434		—		851
Total	$	39,695	$	11,928	$	27,767	$	26,503	$	—	$	1,264