Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell

6 Months Ended

Jun. 30, 2013

Securities Purchased Under Agreements to Resell [Abstract]

Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]

NOTE 2 - FEDERAL FUNDS SOLD AND SECURITIES BORROWED OR PURCHASED UNDER AGREEMENTS TO RESELL

Federal funds sold and securities borrowed or purchased under agreements to resell were as follows:

(Dollars in millions)	June 30, 2013		December 31, 2012
Federal funds		$69		$29
Securities borrowed	265		155
Resell agreements	777		917
Total federal funds sold and securities borrowed or purchased under agreements to resell		$1,111		$1,101

Securities purchased under agreements to resell are primarily collateralized by U.S. government or agency securities and are carried at the amounts at which securities will be subsequently resold. Securities borrowed are primarily collateralized by corporate securities. The Company takes possession of all securities under agreements to resell and securities borrowed and performs the appropriate margin evaluation on the acquisition date based on market volatility, as necessary. It is the Company's policy to obtain possession of collateral with a fair value between 95% to 110% of the principal amount loaned under resale and securities borrowing agreements. The total market value of the collateral held was $1.0 billion and $1.1 billion at June 30, 2013 and December 31, 2012, of which $254 million and $246 million was repledged, respectively. The Company has also pledged $926 million and $727 million of trading assets to secure $934 million and $703 million of repurchase agreements at June 30, 2013 and December 31, 2012, respectively.

Netting of Securities - Repurchase and Resell Agreements

The Company has various financial assets and financial liabilities that are subject to enforceable master netting agreements or similar agreements. The Company's derivatives that are subject to enforceable master netting agreements or similar agreements are discussed in Note 11, "Derivative Financial Instruments." Securities purchased under agreements to resell and securities sold under agreements to repurchase are governed by a MRA. Under the terms of the MRA, all transactions between the Company and the counterparty constitute a single business relationship such that in the event of default, the nondefaulting party is entitled to set off claims and apply property held by that party in respect of any transaction against obligations owed. Any payments, deliveries, or other transfers may be applied against each other and netted.

The following table presents the Company's eligible securities borrowed or purchased under agreements to resell and securities sold under agreements to repurchase at June 30, 2013 and December 31, 2012:

(Dollars in millions)	Gross Amount		Amount Offset		Net Amount Presented in Consolidated Balance Sheets			Held/Pledged Financial Instruments		Net Amount
June 30, 2013
Financial assets:
Securities borrowed or purchased under agreements to resell		$1,042		$—		$1,042	1, 2		$1,033		$9
Financial liabilities:
Securities sold under agreements to repurchase	1,869		—		1,869		1	1,869		—
December 31, 2012
Financial assets:
Securities borrowed or purchased under agreements to resell		$1,072		$—		$1,072	1,2		$1,069		$3
Financial liabilities:
Securities sold under agreements to repurchase	1,574		—		1,574		1	1,574		—

¹ None of the Company's repurchase and reverse repurchase transactions met the right of setoff criteria at June 30, 2013 and December 31, 2012.

² Excludes $69 million and $29 million of Fed funds sold which are not subject to a master netting agreement at June 30, 2013 and December 31, 2012, respectively.