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, refer to Note 2 "Securities" to these Consolidated Financial Statements.

The following table presents the gross obligations for securities sold under agreements to repurchase and securities loaned by remaining contractual maturity and class of collateral pledged as of September 30, 2020 and December 31, 2019.



	September 30, 2020										December 31, 2019
(Dollars in millions)	Overnight and Continuous		Up to 30 Days		31 - 90 Days		Greater than 90 Days		Total		Overnight and Continuous		Up to 30 Days		31 - 90 Days		Greater than 90 Days		Total
Securities sold under agreements to repurchase
U.S. Treasury and government agencies	$	10,553	$	2,146	$	524	$	200	$	13,423	$	12,219	$	2,237	$	385	$	102	$	14,943
Mortgage-backed:
U.S. agencies	8,288		2,000		3,009		600		13,897		5,322		1,582		7,126		—		14,030
Corporate debt	438		—		584		—		1,022		688		24		1,161		—		1,873
Other debt	409		—		425		—		834		327		—		533		—		860
Equity	381		—		306		—		687		1,400		349		456		—		2,205
Total	$	20,069	$	4,146	$	4,848	$	800	$	29,863	$	19,956	$	4,192	$	9,661	$	102	$	33,911
Securities loaned:
Corporate bonds	—		—		20		—		20		2		—		—		—		2
Other Debt	—		—		11		—		11		—		—		—		—		—
Equity	—		—		146		—		146		257		236		—		—		493
Total	$	—	$	—	$	177	$	—	$	177	$	259	$	236	$	—	$	—	$	495

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 as of September 30, 2020 and December 31, 2019.



	September 30, 2020
							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	$	2,545	$	526	$	2,019	$	49	$	—	$	1,970
Securities borrowed or purchased under resale agreements	24,143		6,608		17,535		17,435		—		100
Total	$	26,688	$	7,134	$	19,554	$	17,484	$	—	$	2,070
Financial Liabilities:
Derivative liabilities	$	929	$	649	$	280	$	185	$	—	$	95
Securities loaned or sold under repurchase agreements	30,040		6,608		23,432		22,744		—		688
Total	$	30,969	$	7,257	$	23,712	$	22,929	$	—	$	783



	December 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	$	1,233	$	264	$	969	$	26	$	—	$	943
Securities borrowed or purchased under resale agreements	29,483		5,540		23,943		23,844		—		99
Total	$	30,716	$	5,804	$	24,912	$	23,870	$	—	$	1,042
Financial Liabilities:
Derivative liabilities	$	523	$	306	$	217	$	129	$	1	$	87
Securities loaned or sold under repurchase agreements	34,406		5,540		28,866		27,957		—		909
Total	$	34,929	$	5,846	$	29,083	$	28,086	$	1	$	996