4. Trading Assets and Liabilities

Trading assets and liabilities are summarized in the following table.


	September 30, 2012		December 31, 2011
	(in millions)
Trading assets:
U.S. Treasury	$	2,283	$	259
U.S. Government agency issued or guaranteed		292		14
U.S. Government sponsored enterprises⁽¹⁾		231		24
Asset-backed securities		987		1,032
Corporate and foreign bonds⁽²⁾		9,636		11,577
Other securities		37		40
Precious metals		15,777		17,082
Fair value of derivatives, net		9,079		8,772

	$	38,322	$	38,800

Trading liabilities:
Securities sold, not yet purchased	$	361	$	343
Payables for precious metals		6,853		6,999
Fair value of derivatives, net		13,661		6,844

	$	20,875	$	14,186

⁽¹⁾

Includes mortgage-backed securities of $13 million and $10 million issued or guaranteed by the Federal National Mortgage Association (“FNMA”) at September 30, 2012 and December 31, 2011, respectively, and $218 million and $14 million issued or guaranteed by the Federal Home Loan Mortgage Corporation (“FHLMC”) at September 30, 2012 and December 31, 2011, respectively.

⁽²⁾	We did not hold any foreign bonds issued by the governments of Greece, Ireland, Italy, Portugal or Spain at either September 30, 2012 or December 31, 2011.

At September 30, 2012 and December 31, 2011, the fair value of derivatives included in trading assets has been reduced by $5.9 billion and $4.8 billion, respectively, relating to amounts recognized for the obligation to return cash collateral received under master netting agreements with derivative counterparties.

At September 30, 2012 and December 31, 2011, the fair value of derivatives included in trading liabilities has been reduced by $2.3 billion and $6.3 billion, respectively, relating to amounts recognized for the right to reclaim cash collateral paid under master netting agreements with derivative counterparties.