SunTrust 2010 Annual Report Download - page 135

SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
Note 10 - Other Short-Term Borrowings
Other short-term borrowings as of December 31 include:
2010 2009
(Dollars in millions) Balance Rates Balance Rates
Master notes $1,355 .40 % $1,363 .75 %
Dealer collateral 1,005 various 585 various
U.S. Treasury demand notes 124 - 62 -
Commercial paper 99 .51 --
Federal funds purchased maturing in over one day 75 .35 --
Other 32 various 52 various
Total other short-term borrowings $2,690 $2,062
The average balances of other short-term borrowings for the years ended December 31, 2010, 2009 and 2008 were $3.0
billion, $2.7 billion, and $3.1 billion, respectively, while the maximum amounts outstanding at any month-end during the
years ended December 31, 2010, 2009 and 2008 were $4.9 billion, $5.8 billion, and $5.2 billion, respectively. As of
December 31, 2010, the Company had collateral pledged to the Federal Reserve discount window to support $12.5 billion of
available borrowing capacity.
Note 11 - Certain Transfers of Financial Assets, Mortgage Servicing Rights and Variable Interest Entities
Certain Transfers of Financial Assets and related Variable Interest Entities
The Company has transferred residential and commercial mortgage loans, student loans, commercial and corporate loans,
and CDO securities in sale or securitization transactions in which the Company has, or had, continuing involvement. All such
transfers have been accounted for as sales by the Company. The Company’s continuing involvement in such transfers
includes owning certain beneficial interests, including senior and subordinate debt instruments as well as equity interests,
servicing or collateral manager responsibilities, and guarantee or recourse arrangements. Except as specifically noted herein,
the Company is not required to provide additional financial support to any of the entities to which the Company has
transferred financial assets, nor has the Company provided any support it was not otherwise obligated to provide. Prior to
January 1, 2010, interests that were held by the Company in transferred financial assets, excluding servicing and collateral
management rights, were generally recorded as securities AFS or trading assets at their allocated carrying amounts based on
their relative fair values at the time of transfer and were subsequently remeasured at fair value. In accordance with the new
accounting guidance related to transfers of financial assets that became effective on January 1, 2010, upon completion of
future transfers of assets that satisfy the conditions to be reported as a sale, the Company will derecognize the transferred
assets and recognize at fair value any beneficial interests in the transferred financial assets such as trading assets or securities
AFS, as well as servicing rights retained and guarantee liabilities incurred. See Note 20, “Fair Value Election and
Measurement,” to the Consolidated Financial Statements, for further discussion of the Company’s fair value methodologies.
When evaluating transfers and other transactions with VIEs for consolidation under the newly adopted VIE consolidation
guidance, the Company first determines if it has a VI in the VIE. A VI is typically in the form of securities representing
retained interests in the transferred assets and, at times, servicing rights and collateral manager fees. If the Company has a VI
in the entity, it then evaluates whether or not it has both (1) the power to direct the activities that most significantly impact
the economic performance of the VIE, and (2) the obligation to absorb losses or the right to receive benefits that could
potentially be significant to the VIE. If the Company determines that it does not have power over the significant activities of
the VIE, an analysis of the economics of the VIE is not necessary. If it is determined that the Company does have power over
the significant activities of the VIE, the Company must determine if it also has an obligation to absorb losses and/or the right
to receive benefits that could potentially be significant to the VIE.
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