Wells Fargo 2010 Annual Report Download - page 149

The classifications of assets and liabilities in our balance sheet associated with our transactions with VIEs follow:
Transfers that
VIEs that we VIEs we account
do not that we for as secured
(in millions) consolidate consolidate borrowings Total
December 31, 2010
Cash $ - 200 398 598
Trading assets 5,351 143 32 5,526
Securities available for sale (1) 24,001 2,159 7,834 33,994
Loans 12,400 16,708 1,613 30,721
Mortgage servicing rights 13,262 - - 13,262
Other assets 3,783 2,039 90 5,912
Total assets 58,797 21,249 9,967 90,013
Short-term borrowings - 3,636 (2) 7,773 11,409
Accrued expenses and other liabilities 3,514 716 (2) 14 4,244
Long-term debt - 8,377 (2) 1,700 10,077
Total liabilities 3,514 12,729 9,487 25,730
Noncontrolling interests - 40 - 40
Net assets $ 55,283 8,480 480 64,243
December 31, 2009
Cash $ - 273 328 601
Trading assets 6,097 77 35 6,209
Securities available for sale (1) 35,186 1,794 7,126 44,106
Loans 15,698 561 2,007 18,266
Mortgage servicing rights 16,233 - - 16,233
Other assets 5,604 2,595 68 8,267
Total assets 78,818 5,300 9,564 93,682
Short-term borrowings - 351 1,996 2,347
Accrued expenses and other liabilities 3,352 708 4,864 8,924
Long-term debt (3) - 1,163 1,938 3,101
Total liabilities 3,352 2,222 8,798 14,372
Noncontrolling interests - 68 - 68
Net assets $ 75,466 3,010 766 79,242
(1) Excludes certain debt securities related to loans serviced for the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and
GNMA.
(2) Includes the following VIE liabilities at December 31, 2010, with recourse to the general credit of Wells Fargo: Short-term borrowings, $3.6 billion; Accrued expenses and
other liabilities, $645 million; and Long-term debt, $53 million.
(3) “VIEs that we consolidate” has been revised to correct previously reported amount.
Transactions with Unconsolidated VIEs
Our transactions with VIEs include securitizations of consumer
loans, CRE loans, student loans, auto loans and municipal
bonds; investment and financing activities involving CDOs
backed by asset-backed and CRE securities, collateralized loan
obligations (CLOs) backed by corporate loans or bonds, and
other types of structured financing. We have various forms of
involvement with VIEs, including holding senior or subordinated
interests, entering into liquidity arrangements, credit default
swaps and other derivative contracts. These involvements with
unconsolidated VIEs are recorded on our balance sheet
primarily in trading assets, securities available for sale, loans,
MSRs, other assets and other liabilities, as appropriate.
The following tables provide a summary of unconsolidated
VIEs with which we have significant continuing involvement, but
are not the primary beneficiary. The balances presented for
December 31, 2010, represent our unconsolidated VIEs for
which we consider our involvement to be significant. The
balances presented for December 31, 2009, include
unconsolidated VIEs with which we have continuing
involvement that we no longer consider significant. Accordingly,
we have excluded these transactions from the balances presented
for December 31, 2010. We have refined our definition of
significant continuing involvement in accordance with
consolidation accounting guidance to exclude unconsolidated
VIEs when our continuing involvement relates to third-party
sponsored VIEs for which we were not the transferor, and
unconsolidated VIEs for which we were the sponsor but do not
have any other significant continuing involvement.
Significant continuing involvement includes transactions
where we were the sponsor or transferor and have other
significant forms of involvement. Sponsorship includes
transactions with unconsolidated VIEs where we solely or
materially participated in the initial design or structuring of the
entity or marketing of the transaction to investors. When we
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