Wells Fargo 2009 Annual Report Download - page 135

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Carrying value(1)
Total Third
VIE Consolidated party Noncontrolling
(in millions) assets assets liabilities interests
December 31, 2008
Secured borrowings:
Municipal tender option bond securitizations $ 6,358 6,280 4,765 —
Auto loan securitizations 2,134 2,134 1,869 —
Commercial real estate loans 1,294 1,294 1,258 —
Residential mortgage securitizations 1,124 995 699 —
Total secured borrowings 10,910 10,703 8,591 —
Consolidated VIEs:
Structured asset finance 3,491 1,666 1,481 13
Investment funds 1,119 1,070 155 97
Other 1,007 1,007 774 11
Total consolidated VIEs 5,617 3,743 2,410 121
Total secured borrowings and consolidated VIEs $ 16,527 14,446 11,001 121
December 31, 2009
Secured borrowings:
Municipal tender option bond securitizations $ 7,156 7,189 6,856 —
Auto loan securitizations 274 274 121 —
Commercial real estate loans 1,309 1,309 1,269 —
Residential mortgage securitizations 901 792 552 —
Total secured borrowings 9,640 9,564 8,798 —
Consolidated VIEs:
Structured asset finance 2,791 1,074 1,088 10
Investment funds 2,257 2,245 271 33
Other 2,697 1,981 1,148 25
Total consolidated VIEs 7,745 5,300 2,507 68
Total secured borrowings and consolidated VIEs $17,385 14,864 11,305 68
(1) Amounts exclude loan loss reserves, and total assets may differ from consolidated assets due to the different measurement methods used depending on classification
of the assets.
We do not consolidate the VIEs that issued the ARS
because we do not expect to absorb the majority of the
expected future variability associated with assets of
the VIEs.
TRUST PREFERRED SECURITIES In addition to the involvements
disclosed in the following table, we had $19.0 billion of debt
financing through the issuance of trust preferred securities at
December 31, 2009. In these transactions, VIEs that we wholly
own issue preferred equity or debt securities to third party
investors. All of the proceeds of the issuance are invested in
debt securities that we issue to the VIEs. In certain instances,
we may provide liquidity to third party investors that purchase
long-term securities that reprice frequently issued by VIEs.
We have raised financing through the securitization
of certain financial assets in transactions with VIEs accounted
for as secured borrowings. We also consolidate VIEs where
we are the primary beneficiary. In certain transactions we
provide contractual support in the form of limited recourse
and liquidity to facilitate the remarketing of short-term
securities issued to third party investors. Other than this
limited contractual support, the assets of the VIEs are
the sole source of repayment of the securities held by
third parties.
The VIEs’ operations and cash flows relate only to the
issuance, administration and repayment of the securities held
by third parties. We do not consolidate these VIEs because
the sole assets of the VIEs are receivables from us. This is the
case even though we own all of the voting equity shares of the
VIEs, have fully guaranteed the obligations of the VIEs and
may have the right to redeem the third party securities under
certain circumstances. We report the debt securities that
we issue to the VIEs as long-term debt in our consolidated
balance sheet.
A summary of our transactions with VIEs accounted for
as secured borrowings and involvements with consolidated
VIEs follows: