Morgan Stanley 2010 Annual Report Download - page 180

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following tables present information at December 31, 2010 and December 31, 2009 about VIEs that the
Company consolidates. Consolidated VIE assets and liabilities are presented after intercompany eliminations and
include assets financed on a non-recourse basis. As a result of the accounting guidance adopted on January 1,
2010, the Company consolidated a number of VIEs that had not previously been consolidated and
de-consolidated a number of VIEs that previously had been consolidated at December 31, 2009.
At December 31, 2010
Mortgage and
Asset-Backed
Securitizations
Collateralized
Debt
Obligations
Managed
Real Estate
Partnerships
Other Structured
Financings Other
(dollars in millions)
VIE assets ................. $3,362 $129 $2,032 $ 643 $2,584
VIE liabilities .............. $2,544 $ 68 $ 108 $2,571 $1,219
At December 31, 2009
Mortgage and
Asset-Backed
Securitizations
Credit and Real
Estate
Commodities
Financing
Other Structured
Financings
(dollars in millions)
VIE assets ......................... $2,715 $2,629 $1,509 $762
VIE liabilities ...................... $ 992 $ 687 $1,370 $ 73
In general, the Company’s exposure to loss in consolidated VIEs is limited to losses that would be absorbed on
the VIE’s assets recognized in its financial statements, net of losses absorbed by third-party holders of the VIE’s
liabilities. At December 31, 2010, managed real estate partnerships reflected noncontrolling interests of
$1,508 million. The Company also had additional maximum exposure to losses of approximately $884 million
and $533 million at December 31, 2010 and December 31, 2009, respectively. This additional exposure related
primarily to certain derivatives (e.g., credit derivatives in which the Company has sold unfunded protection in
synthetic collateralized debt obligations, typically for the most senior tranche, in which the total protection sold
by the VIE exceeds the amount of collateral held) and commitments, guarantees and other forms of involvement.
174