JP Morgan Chase 2009 Annual Report Download - page 229

JPMorgan Chase & Co./2009 Annual Report 227
Note 20 – Other borrowed funds
The following table details the components of other borrowed funds.
At December 31, (in millions) 2009 2008
Advances from Federal Home Loan Banks(a) $ 27,847 $ 70,187
Nonrecourse advances – FRBB(b) — 11,192
Other(c) 27,893 51,021
Total(d) $ 55,740 $ 132,400
(a) Maturities of advances from the FHLBs are $23.6 billion, $2.6 billion, and
$716 million in each of the 12-month periods ending December 31, 2010,
2011, and 2013, respectively, and $926 million maturing after December 31,
2014. Maturities for the 12-month period ending December 31, 2012 and
2014 were not material.
(b) On September 19, 2008, the Federal Reserve Board established a special
lending facility, the Asset-Backed Commercial Paper Money Market Mutual
Fund Liquidity Facility (“AML Facility”), to provide liquidity to eligible U.S.
money market mutual funds. Under the AML Facility, banking organizations
must use the loan proceeds to finance their purchases of eligible high-quality
ABCP investments from money market mutual funds, which are pledged to
secure nonrecourse advances from the Federal Reserve Bank of Boston
(“FRBB”). Participating banking organizations do not bear any credit or mar-
ket risk related to the ABCP investments they hold under this facility; there-
fore, the ABCP investments held are not assessed any regulatory capital. The
AML Facility ended on February 1, 2010. The nonrecourse advances from the
FRBB were elected under the fair value option and recorded in other bor-
rowed funds; the corresponding ABCP investments were also elected under
the fair value option and recorded in other assets. The fair value of ABCP in-
vestments purchased under the AML Facility for U.S. money market mutual
funds is determined based on observable market information and is classified
in level 2 of the valuation hierarchy.
(c) Includes zero and $30 billion of advances from the Federal Reserve under the
Federal Reserve’s Term Auction Facility (“TAF”) at December 31, 2009 and
2008, respectively, pursuant to which the Federal Reserve auctions term
funds to depository institutions that are eligible to borrow under the primary
credit program. The TAF allows all eligible depository institutions to place a
bid for an advance from its local Federal Reserve Bank at an interest rate set
by an auction. All advances are required to be fully collateralized. The TAF is
designed to improve liquidity by making it easier for sound institutions to bor-
row when the markets are not operating efficiently.
(d) Includes other borrowed funds of $5.6 billion and $14.7 billion accounted for
at fair value at December 31, 2009 and 2008, respectively.
Note 21 – Accounts payable and other
liabilities
The following table details the components of accounts payable
and other liabilities at each of the dates indicated.
At December 31,
(in millions) 2009 2008
Brokerage payables(a) $ 92,848 $ 115,483
Accounts payable and other
liabilities(b) 69,848 72,495
Total $ 162,696 $ 187,978
(a) Includes payables to customers, brokers, dealers and clearing organizations,
and securities fails.
(b) Includes $357 million and zero accounted for at fair value at December 31,
2009 and 2008, respectively.