Morgan Stanley 2014 Annual Report Download - page 101

At December 31, 2013
Institutional
Securities
Wealth
Management(1)
Investment
Management(1) Total
(dollars in millions)
Assets
Cash and cash equivalents(2) ...................... $ 30,169 $ 28,966 $ 748 $ 59,883
Cash deposited with clearing organizations or
segregated under federal and other regulations or
requirements(3) .............................. 36,422 2,781 — 39,203
Trading assets .................................. 273,959 2,104 4,681 280,744
Investment securities(4) .......................... — 53,430 — 53,430
Securities received as collateral(3) ................. 20,508 — — 20,508
Securities purchased under agreements to resell(3) ..... 106,812 11,318 — 118,130
Securities borrowed(3) ........................... 129,366 341 — 129,707
Customer and other receivables(3) ................. 33,927 22,493 684 57,104
Loans, net of allowance(5) ........................ 17,890 24,984 — 42,874
Other assets(6) ................................. 19,543 10,086 1,490 31,119
Total assets(7) ................................. $668,596 $156,503 $7,603 $832,702
(1) On October 1, 2014, the Managed Futures business was transferred from the Company’s Wealth Management business segment to the
Company’s Investment Management business segment.
(2) Cash and cash equivalents include Cash and due from banks and Interest bearing deposits with banks.
(3) Certain of these assets are included in secured financing assets (see “Secured Financing” herein).
(4) Investment securities include only AFS securities.
(5) 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).
(6) Other assets include Other investments; Premises, equipment and software costs; Goodwill; Intangible assets; and Other assets.
(7) Total assets include Global Liquidity Reserve of $202 billion at December 31, 2013.
A substantial portion of the Company’s total assets consists of liquid marketable securities and short-term
receivables arising principally from sales and trading activities in the Company’s Institutional Securities business
segment. The liquid nature of these assets provides the Company with flexibility in managing the size of its
balance sheet. The Company’s total assets decreased to $802 billion at December 31, 2014 from $833 billion at
December 31, 2013. The decrease in total assets was primarily due to a decrease in Trading assets, primarily due
to reductions in U.S. government and agency securities, interest bearing deposits with banks, and Securities
purchased under agreements to resell partially offset by an increase in Loans, Investment securities and Securities
borrowed.
The Company’s assets and liabilities are primarily related to transactions attributable to sales and trading and
securities financing activities. At December 31, 2014, securities financing assets and liabilities were $320 billion
and $295 billion, respectively. At December 31, 2013, securities financing assets and liabilities were $352 billion
and $353 billion, respectively. Securities financing transactions include Cash deposited with clearing
organizations or segregated under federal and other regulations or requirements, repurchase and resale
agreements, Securities borrowed and loaned transactions, Securities received as collateral and obligations to
return securities received, and Customer and other receivables and payables. Securities borrowed or purchased
under agreements to resell and securities loaned or sold under agreements to repurchase are treated as
collateralized financings (see Notes 2 and 6 to the Company’s consolidated financial statements in Item 8).
Securities sold under agreements to repurchase and Securities loaned were $95 billion at December 31, 2014 and
averaged $137 billion during 2014. Securities sold under agreements to repurchase and Securities loaned period-
end balances were lower than the average balances during 2014 as the Company’s assets decreased. Securities
purchased under agreements to resell and Securities borrowed were $220 billion at December 31, 2014 and
averaged $255 billion during 2014. Securities purchased under agreements to resell and Securities borrowed
period-end balances were lower than the average balances during 2014 due to a reduction in client financing
activity and an increase in financing balance sheet efficiencies.
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