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Securities Financing Activities
 12 Months Ended
Dec. 31, 2019
Brokers and Dealers [Abstract]  
Securities Financing Activities
16. Securities Financing Activities

The following table summarizes our securities financing agreements at December 31, 2019, and December 31, 2018:

 
December 31, 2019
 
December 31, 2018
in millions
Gross Amount
Presented in
Balance Sheet
Netting
Adjustments (a)
Collateral (b)
Net
Amounts
 
Gross Amount
Presented in
Balance Sheet
Netting
Adjustments (a)
Collateral (b)
Net
Amounts
Offsetting of financial assets:
 
 
 
 
 
 
 
 
 
Reverse repurchase agreements
$
5

$
(5
)
$
—

—

 
$
14

$
(14
)
—

—

Total
$
5

$
(5
)
$
—

—

 
$
14

$
(14
)
—

—

 
 
 
 
 
 
 
 
 
 
Offsetting of financial liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements (c)
$
187

$
(7
)
$
(180
)
—

 
$
319

$
(14
)
$
(305
)
—

Total
$
187

$
(7
)
$
(180
)
—

 
$
319

$
(14
)
$
(305
)
—

 
 
 
 
 
 
 
 
 
 
(a)
Netting adjustments take into account the impact of master netting agreements that allow us to settle with a single counterparty on a net basis.
(b)
These adjustments take into account the impact of bilateral collateral agreements that allow us to offset the net positions with the related collateral. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.
(c)
Repurchase agreements are collateralized by mortgaged-backed agency securities and are contracted on an overnight or continuous basis.

As of December 31, 2019, the carrying amount of assets pledged as collateral against repurchase agreements totaled $204 million. Assets pledged as collateral are reported in “available for sale” and “held-to-maturity” securities on our balance sheet. At December 31, 2019, the liabilities associated with collateral pledged were solely comprised of customer sweep financing activity and had a carrying value of $180 million. The collateral pledged under customer sweep repurchase agreements is posted to a third-party custodian and cannot be sold or repledged by the secured party. The risk related to a decline in the market value of collateral pledged is minimal given the collateral's high credit quality and the overnight duration of the repurchase agreements.

Like other financing transactions, securities financing agreements contain an element of credit risk. To mitigate and manage credit risk exposure, we generally enter into master netting agreements and other collateral arrangements that give us the right, in the event of default, to liquidate collateral held and to offset receivables and payables with the same counterparty.  Additionally, we establish and monitor limits on our counterparty credit risk exposure by product type. For the reverse repurchase agreements, we monitor the value of the underlying securities we received from counterparties and either request additional collateral or return a portion of the collateral based on the value of those securities. We generally hold collateral in the form of highly rated securities issued by the U.S. Treasury and fixed income securities. In addition, we may need to provide collateral to counterparties under our repurchase agreements. With the exception of collateral pledged against customer sweep repurchase agreements, the collateral we pledge and receive can generally be sold or repledged by the secured parties.