Wells Fargo 2011 Annual Report Download - page 163

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, 2011
Cash
$
-
321
11
332
Trading assets
3,723
293
30
4,046
Securities available for sale (1)
21,708
3,332
11,671
36,711
Mortgages held for sale
-
444
-
444
Loans
11,404
11,967
7,181
30,552
Mortgage servicing rights
12,080
-
-
12,080
Other assets
4,494
1,858
137
6,489
Total assets
53,409
18,215
19,030
90,654
Short-term borrowings
-
3,450
(3)
10,682
14,132
Accrued expenses and other liabilities
3,350
1,138
(3)
121
4,609
Long-term debt
-
4,932
(3)
6,686
11,618
Total liabilities
3,350
9,520
17,489
30,359
Noncontrolling interests
-
61
-
61
Net assets
$
50,059
8,634
1,541
60,234
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
Mortgages held for sale (2)
-
634
-
634
Loans
12,401
16,708
1,613
30,722
Mortgage servicing rights
13,261
-
-
13,261
Other assets (2)
3,783
2,071
90
5,944
Total assets
58,797
21,915
9,967
90,679
Short-term borrowings
-
3,636
(3)
7,773
11,409
Accrued expenses and other liabilities (2)
3,514
743
(3)
14
4,271
Long-term debt
-
8,377
(3)
1,700
10,077
Total liabilities
3,514
12,756
9,487
25,757
Noncontrolling interests (2)
-
94
-
94
Net assets
$
55,283
9,065
480
64,828
(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) “VIEs that we consolidate” has been revised to correct previously reported amounts.
(3) Includes the following VIE liabilities at December 31, 2011, and December 31, 2010, respectively, with recourse to the general credit of Wells Fargo: Short-term borrowings,
$3.4 billion and $3.6 billion; Accrued expenses and other liabilities, $963 million and $645 million; and Long-term debt, $30 million and $53 million.
Transactions with Unconsolidated VIEs
Our transactions with VIEs include securitizations of residential
mortgage loans, CRE loans, student loans and auto loans and
leases; investment and financing activities involving CDOs
backed by asset-backed and CRE securities, collateralized loan
obligations (CLOs) backed by corporate loans, 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. Involvements with these
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
we are not the primary beneficiary. We do not consider our
continuing involvement in an unconsolidated VIE to be
significant when it relates to third-party sponsored VIEs for
which we were not the transferor or if 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
transfer assets to a VIE and account for the transfer as a sale, we
are considered the transferor. We consider investments in
securities held outside of trading, loans, guarantees, liquidity
161