Wells Fargo 2014 Annual Report Download - page 183

The classifications of assets and liabilities in our balance
sheet associated with our transactions with VIEs follow:
Transfers
that we
VIEs that VIEs that account for
we do not we as secured
(in millions) consolidate consolidate borrowings Total
December 31, 2014
Cash $ — 117 4 121
Trading assets 2,165 — 204 2,369
Investment securities (1) 18,271 875 4,592 23,738
Mortgages held for sale — — — —
Loans 13,195 4,509 5,280 22,984
Mortgage servicing rights 12,562 — — 12,562
Other assets 7,456 316 52 7,824
Total assets 53,649 5,817 10,132 69,598
Short-term borrowings — — 3,141 3,141
Accrued expenses and other liabilities 848 49 (2) 1 898
Long-term debt 2,585 1,628 (2) 4,990 9,203
Total liabilities 3,433 1,677 8,132 13,242
Noncontrolling interests — 103 — 103
Net assets $ 50,216 4,037 2,000 56,253
December 31, 2013
Cash $ — 165 7 172
Trading assets 1,206 162 193 1,561
Investment securities (1) 18,795 1,352 8,976 29,123
Mortgages held for sale — 38 — 38
Loans 7,652 6,058 6,021 19,731
Mortgage servicing rights (3) 15,281 — — 15,281
Other assets 6,151 347 110 6,608
Total assets 49,085 8,122 15,307 72,514
Short-term borrowings — 29 7,871 7,900
Accrued expenses and other liabilities (3) 1,395 99 (2) 3 1,497
Long-term debt (3) 2,109 2,356 (2) 5,673 10,138
Total liabilities 3,504 2,484 13,547 19,535
Noncontrolling interests — 5 — 5
Net assets $ 45,581 5,633 1,760 52,974
(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, 2014 and 2013, respectively, with recourse to the general credit of Wells Fargo: Accrued expenses and other liabilities,
$0 million and $9 million; and Long-term debt, $0 million and $29 million.
(3) Amounts have been revised for "VIEs that we do not consolidate" to include assets and liabilities related to certain commercial mortgage securitizations and to conform to
the current year presentation of long-term debt.
Transactions with Unconsolidated VIEs
Our transactions with VIEs include securitizations of residential
mortgage loans, CRE loans, student loans, auto loans and leases
and dealer floorplan loans; investment and financing activities
involving collateralized debt obligations (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 servicing, 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, investment securities, 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 (unless we are servicer and
have other significant forms of involvement) or if we were the
sponsor only or sponsor and servicer but do not have any other
forms of significant 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 (other than those held temporarily in 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 balances presented in the
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