Wells Fargo 2012 Annual Report Download - page 172

Note 8: Securitizations and Variable Interest Entities (continued)
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, 2012
Cash $ - 260 30 290
Trading assets 1,902 114 218 2,234
Securities available for sale (1) 19,900 2,772 14,848 37,520
Mortgages held for sale - 469 - 469
Loans 9,841 10,553 7,088 27,482
Mortgage servicing rights 11,114 - - 11,114
Other assets 4,993 457 161 5,611
Total assets 47,750 14,625 22,345 84,720
Short-term borrowings - 2,059 (2) 13,228 15,287
Accrued expenses and other liabilities 3,441 901 (2) 20 4,362
Long-term debt - 3,483 (2) 6,520 10,003
Total liabilities 3,441 6,443 19,768 29,652
Noncontrolling interests - 48 - 48
Net assets $ 44,309 8,134 2,577 55,020
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 (2) 10,682 14,132
Accrued expenses and other liabilities 3,350 1,138 (2) 121 4,609
Long-term debt - 4,932 (2) 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
(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, 2012, and December 31, 2011, respectively, with recourse to the general credit of Wells Fargo: Short-term borrowings,
$2.1 billion and $3.4 billion; Accrued expenses and other liabilities, $767 million and $963 million; and Long-term debt, $29 million and $30 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
agreements, written options and servicing of collateral to be
other forms of involvement that may be significant. We have
excluded certain transactions with unconsolidated VIEs from the
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