Morgan Stanley 2014 Annual Report Download - page 100

Liquidity and Capital Resources.
The Company’s senior management establishes liquidity and capital policies. Through various risk and control
committees, the Company’s senior management reviews business performance relative to these policies,
monitors the availability of alternative sources of financing, and oversees the liquidity and interest rate and
currency sensitivity of the Company’s asset and liability position. The Company’s Treasury Department, Firm
Risk Committee, Asset and Liability Management Committee, and other committees and control groups assist in
evaluating, monitoring and controlling the impact that the Company’s business activities have on its consolidated
statements of financial condition, liquidity and capital structure. Liquidity and capital matters are reported
regularly to the Board’s Risk Committee.
The Balance Sheet.
The Company monitors and evaluates the composition and size of its balance sheet on a regular basis. The
Company’s balance sheet management process includes quarterly planning, business-specific limits, monitoring
of business-specific usage versus limits, key metrics and new business impact assessments.
The Company establishes balance sheet limits at the consolidated, business segment and business unit levels. The
Company monitors balance sheet usage versus limits, and variances resulting from business activity or market
fluctuations are reviewed. On a regular basis, the Company reviews current performance versus limits and
assesses the need to re-allocate limits based on business unit needs. The Company also monitors key metrics,
including asset and liability size, composition of the balance sheet, limit utilization and capital usage.
The tables below summarize total assets for the Company’s business segments at December 31, 2014 and
December 31, 2013:
At December 31, 2014
Institutional
Securities
Wealth
Management
Investment
Management Total
(dollars in millions)
Assets
Cash and cash equivalents(1) ......................... $ 23,161 $ 23,363 $ 460 $ 46,984
Cash deposited with clearing organizations or segregated
under federal and other regulations or requirements(2) . . . 37,841 2,766 — 40,607
Trading assets ..................................... 252,021 1,300 3,480 256,801
Investment securities(3) .............................. 11,999 57,317 — 69,316
Securities received as collateral(2) ..................... 21,316 — — 21,316
Securities purchased under agreements to resell(2) ........ 73,299 9,989 — 83,288
Securities borrowed(2) .............................. 136,336 372 — 136,708
Customer and other receivables(2) ..................... 27,328 21,022 611 48,961
Loans, net of allowance(4) ........................... 28,755 37,822 — 66,577
Other assets(5) ..................................... 18,285 11,196 1,471 30,952
Total assets(6) ..................................... $630,341 $165,147 $6,022 $801,510
(1) Cash and cash equivalents include Cash and due from banks and Interest bearing deposits with banks.
(2) Certain of these assets are included in secured financing assets (see “Secured Financing” herein).
(3) Investment securities include both AFS securities and HTM securities.
(4) Amounts include loans held for sale and loans held for investment but exclude loans at fair value, which are included in Trading assets in
the Company’s consolidated statements of financial condition (see Note 8 to the Company’s consolidated financial statements in Item 8).
(5) Other assets include Other investments; Premises, equipment and software costs; Goodwill; Intangible assets; and Other assets.
(6) Total assets include Global Liquidity Reserve of $193 billion at December 31, 2014.
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