Morgan Stanley 2009 Annual Report Download - page 84

Eligible Entity (including the Company) may have outstanding is 125% of the entity’s senior unsecured debt that
was outstanding as of September 30, 2008 that was scheduled to mature on or before June 30, 2009. The ability
of certain Eligible Entities (including the Company) to issue guaranteed debt under this program, under the
Interim Rule described above, expired on October 31, 2009.
At December 31, 2009, the Company had $23.8 billion of senior unsecured debt outstanding under the TLGP. At
December 31, 2008, the Company had commercial paper and long-term debt outstanding of $6.4 billion and $9.8
billion, respectively, under the TLGP. The weighted average rate at which the Company issued commercial paper
and long-term debt, including TLGP fees, under the TLGP as of December 31, 2008 was 2.28% and 3.70%,
respectively. The weighted average rate at which the Company issued long-term debt under TLGP in the first
quarter of 2009, including TLGP fees was 2.80%. The Company did not issue any commercial paper under the
program in the first quarter of 2009. The Company is unable to determine the benefit to operating results, if any,
of issuing debt under the TLGP as there are no appropriate benchmarks due to the disruption in the debt capital
markets at that time. There have been no issuances under the TLGP since March 31, 2009. See Note 9 to the
consolidated financial statements for further information on commercial paper and long-term borrowings.
Short-Term Borrowings. The Company’s unsecured short-term borrowings may consist of commercial paper,
bank loans, bank notes and structured notes with maturities of 12 months or less at issuance.
The table below summarizes the Company’s short-term unsecured borrowings:
At
December 31,
2009
At
December 31,
2008
(dollars in millions)
Commercial paper .......................................... $ 783 $ 7,388
Other short-term borrowings .................................. 1,595 2,714
Total ................................................. $2,378 $10,102
Commercial Paper Funding Facility. During 2009, the Company had the ability to access the Commercial
Paper Funding Facility (“CPFF”) which provided a liquidity backstop to U.S. issuers of commercial paper
through a special purpose vehicle that purchased three-month unsecured and asset-backed commercial paper
directly from eligible issuers. The CPFF program expired on February 1, 2010. As of December 31, 2009, the
Company had no commercial paper outstanding under the CPFF program. As of December 31, 2008, the
Company had $4.3 billion outstanding under the CPFF program.
Deposits. The Company’s bank subsidiaries’ funding sources include bank deposit sweeps, repurchase
agreements, federal funds purchased, certificates of deposit, money market deposit accounts, commercial paper
and Federal Home Loan Bank advances.
Deposits were as follows:
At
December 31,
2009(1)
At
December 31,
2008(1)
(dollars in millions)
Savings and demand deposits .................................. $57,114 $41,226
Time deposits(2) ............................................ 5,101 10,129
Total ................................................. $62,215 $51,355
(1) Total deposits insured by the FDIC at December 31, 2009 and December 31, 2008 were $46 billion and $47 billion, respectively.
(2) Certain time deposit accounts are carried at fair value under the fair value option (see Note 4 to the consolidated financial statements).
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