Morgan Stanley 2009 Annual Report Download - page 144

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2009
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Counterparty
and Cash
Collateral
Netting
Balance at
December 31,
2009
(dollars in millions)
Assets
Financial instruments owned:
U.S. government and agency securities:
U.S. Treasury securities .................. $ 15,394 $ — $ — $ — $ 15,394
U.S. agency securities ................... 19,670 27,115 36 — 46,821
Total U.S. government and agency
securities ....................... 35,064 27,115 36 — 62,215
Other sovereign government obligations ......... 21,080 4,362 3 — 25,445
Corporate and other debt:
State and municipal securities ............. — 3,234 713 — 3,947
Residential mortgage-backed securities ..... — 4,285 818 — 5,103
Commercial mortgage-backed securities ..... — 2,930 1,573 — 4,503
Asset-backed securities .................. — 4,797 591 — 5,388
Corporate bonds ........................ — 37,363 1,038 — 38,401
Collateralized debt obligations ............ — 1,539 1,553 — 3,092
Loans and lending commitments ........... — 13,759 12,506 — 26,265
Other debt ............................ — 2,093 1,662 — 3,755
Total corporate and other debt(1) ...... — 70,000 20,454 — 90,454
Corporate equities(2) ........................ 49,732 7,700 536 — 57,968
Derivative and other contracts(3) .............. 2,310 102,466 14,549 (70,244) 49,081
Investments ............................... 743 930 7,613 — 9,286
Physical commodities ....................... — 5,329 — — 5,329
Total financial instruments owned .................. 108,929 217,902 43,191 (70,244) 299,778
Securities received as collateral .................... 12,778 855 23 — 13,656
Intangible assets(4) ............................. — — 137 — 137
Liabilities
Commercial paper and other short-term borrowings .... $ — $ 791 $ — $ — $ 791
Deposits ...................................... — 4,943 24 — 4,967
Financial instruments sold, not yet purchased:
U.S. government and agency securities:
U.S. Treasury securities .................. 17,907 1 — — 17,908
U.S. agency securities ................... 2,573 22 — — 2,595
Total U.S. government and agency
securities ....................... 20,480 23 — — 20,503
Other sovereign government obligations ......... 16,747 1,497 — — 18,244
Corporate and other debt:
State and municipal securities ............. — 9 — — 9
Commercial mortgage-backed securities ..... — 8 — — 8
Asset-backed securities .................. — 63 4 — 67
Corporate bonds ........................ — 5,812 29 — 5,841
Collateralized debt obligations ............ — — 3 — 3
Unfunded lending commitments ........... — 732 252 — 984
Other debt ............................ — 483 431 — 914
Total corporate and other debt ......... — 7,107 719 — 7,826
Corporate equities(2) ........................ 18,125 4,472 4 — 22,601
Derivative and other contracts(3) .............. 3,383 67,847 6,203 (39,224) 38,209
Total financial instruments sold, not yet purchased .... 58,735 80,946 6,926 (39,224) 107,383
Obligation to return securities received as collateral .... 12,778 855 23 — 13,656
Other secured financings(1) ....................... — 6,570 1,532 — 8,102
Long-term borrowings ........................... — 30,745 6,865 — 37,610
(1) Approximately $3.0 billion of assets is included in Corporate and other debt and approximately $2.6 billion of related liabilities is
included in Other secured financings related to consolidated VIEs or non-consolidated VIEs (in the cases where the assets were
transferred by the Company to the VIE and the transfers were accounted for as secured financings). The Company cannot unilaterally
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