Capital One 2010 Annual Report Download - page 159

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED STATEMENTS
139
In addition to issuance capacity under the shelf registration statement, we have access to other borrowing programs, including
advances from the Federal Home Loan Bank. Our FHLB membership is secured by our investment in FHLB stock, which totaled
$269 million and $264 million, as of December 31, 2010 and 2009, respectively.
Securitized Debt Obligations
As a result of the January 1, 2010 prospective adoption of the new consolidation accounting standards, we consolidated the substantial
majority of our securitization trusts, which significantly increased our securitized debt obligations of the consolidated trusts. Effective
January 1, 2010, we added to our consolidated balance sheet $41.9 billion of assets, consisting primarily of credit card loan
receivables underlying the consolidated securitization trusts, along with $44.3 billion of related debt issued by these trusts to third-
party investors. As of December 31, 2010, we had $79 million in fair value hedging gains related to securitized debt obligations which
are disclosed on the consolidated balance sheet in other liabilities.
Senior and Subordinated Debt
Under the Senior and Subordinated Global Bank Note Program, COBNA has the ability to issue debt securities to both U.S. and non-
U.S. lenders and to raise funds in U.S. and foreign currencies. The Senior and Subordinated Global Bank Note Program had $820
million and $1.3 billion outstanding at December 31, 2010 and 2009, respectively. As of December 31, 2010, we had $8.7 billion of
senior and subordinated notes outstanding, which included $578 million in fair value hedging losses. As of December 31, 2009, we
had $9.0 billion of senior and subordinated notes outstanding, which included $300 million of fair value hedging losses. Two senior
notes totaling $671 million matured during the year ended December 31, 2010. See “Note 11—Derivative Instruments and Hedging
Activities” for information about our fair value hedging activities.
Junior Subordinated Debentures
We had $3.6 billion and $3.7 billion of outstanding junior subordinated debentures as of both December 31, 2010 and 2009,
respectively. There were no junior subordinated borrowings that were called or matured during the year ended December 31, 2010. On
August 5, 2009, we issued $1.0 billion of 10.25% trust preferred securities, due 2039. On November 13, 2009, we issued $1.0 billion
of 8.875% trust preferred securities, due 2040.
FHLB Advances
We had outstanding FHLB advances, which are secured by our investment securities, residential mortgage loan portfolio, multifamily
loans, commercial real-estate loans and home equity lines of credit, totaling $1.1 billion and $3.2 billion as of December 31, 2010 and
2009, respectively.
Composition of Customer Deposits, Short-term Borrowings and Long-term Debt
The table below summarizes the components of our deposits, short-term borrowings and long-term debt as of December 31, 2010 and
2009. Our total short-term borrowings consist of federal funds purchased and securities loaned under agreements to repurchase and
other short-term borrowings with a remaining contractual maturity of one year or less. Our long-term debt consists of borrowings with
a remaining contractual maturity of greater than one year. The amounts presented for outstanding borrowings include unamortized
debt premiums and discounts, net of fair value hedge accounting adjustments.