Securitizations and variable interest entities (Tables)

3 Months Ended

Mar. 31, 2012

Incremental Assets and Liabilities of VIEs Included in Consolidated Financial Statements

The following tables present the incremental assets and liabilities included in BNY Mellon’s consolidated financial statements, after applying intercompany eliminations, as of March 31, 2012 and Dec. 31, 2011, based on the assessments performed in accordance with ASC 810 and ASU 2009-17. The net assets of any consolidated VIE are solely available to settle the liabilities of the VIE and to settle any investors’ ownership liquidation requests, including any seed capital invested in the VIE by BNY Mellon.

Investments consolidated under ASC 810 and ASU 2009-17
at March 31, 2012

(in millions)

Investment
Management
funds

Securitizations

Total
consolidated

investments

Available-for-sale

485

Trading assets

11,079

Other assets

530

Total assets

11,609

485

12,094

Trading liabilities

10,290

Other liabilities

437

475

Total liabilities

10,328

437

10,765

Non-redeemable noncontrolling interests

709


Investments consolidated under ASC 810 and ASU 2009-17 at Dec. 31, 2011
(in millions)	Investment Management funds		Securitizations		Total consolidated investments
Available-for-sale	$	-	$	479	$	479
Trading assets		10,751		-		10,751
Other assets		596		-		596
Total assets	$	11,347	$	479	$	11,826
Trading liabilities		10,053		-		10,053
Other liabilities		32		443		475
Total liabilities	$	10,085	$	443	$	10,528
Non-redeemable noncontrolling interests	$	670	$	-	$	670

Variable Interest Entity, Not Primary Beneficiary

Schedule of Variable Interest Entities

As of March 31, 2012 and Dec. 31, 2011, the following assets related to the VIEs, where BNY Mellon is not the primary beneficiary, are included in our consolidated financial statements.


Non-consolidated VIEs at March 31, 2012
(in millions)	Assets		Liabilities		Maximum loss exposure
Other	$	53		-	$	53


Non-consolidated VIEs at Dec. 31, 2011
(in millions)	Assets		Liabilities		Maximum loss exposure
Trading	$	1	$	-	$	1
Other		41		-		41
Total	$	42	$	-	$	42

Credit Supported | Variable Interest Entity, Primary Beneficiary

Schedule of Variable Interest Entities

Certain funds have been created solely with securities that are subject to credit support agreements where we have agreed to absorb the majority of loss. Accordingly, these funds have been consolidated into BNY Mellon and have affected the following financial statement items at March 31, 2012 and Dec. 31, 2011.


Consolidated credit supported VIEs at March 31, 2012
(in millions)	Assets		Liabilities		Maximum loss exposure
Available-for-sale	$	14	$	-	$	14
Other		-		18		10
Total	$	14	$	18	$	24


Consolidated credit supported VIEs at Dec. 31, 2011
(in millions)	Assets		Liabilities		Maximum loss exposure
Available-for-sale	$	14	$	-	$	14
Other		-		22		10
Total	$	14	$	22	$	24

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-Name Accounting Standards Codification

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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Reference 9: http://www.xbrl.org/2003/role/presentationRef

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-Name FASB Interpretation (FIN)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

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Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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Reference 12: http://www.xbrl.org/2003/role/presentationRef

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+ Details