Wells Fargo 2015 Annual Report Download - page 185

Table 8.1 provides the classifications of assets and liabilities
in our balance sheet for our transactions with VIEs.
Table 8.1: Balance Sheet Transactions with VIEs
Transfers
that we
VIEs that VIEs that account for
we do not we as secured
(in millions) consolidate consolidate borrowings Total
December 31, 2015
Cash $ — 157 — 157
Trading assets 1,340 1 203 1,544
Investment securities (1) 12,388 425 2,171 14,984
Loans 9,661 4,811 4,887 19,359
Mortgage servicing rights 12,518 — — 12,518
Other assets 8,938 242 26 9,206
Total assets 44,845 5,636 7,287 57,768
Short-term borrowings — — 1,799 1,799
Accrued expenses and other liabilities 629 57
(2)
1 687
Long-term debt 3,021 1,301
(2)
4,844 9,166
Total liabilities 3,650 1,358 6,644 11,652
Noncontrolling interests — 93 — 93
Net assets $ 41,195 4,185 643 46,023
December 31, 2014
Cash $ — 117 4 121
Trading assets 2,165 — 204 2,369
Investment securities (1) 18,271 875 4,592 23,738
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
(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) There were no VIE liabilities with recourse to the general credit of Wells Fargo for the periods presented.
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, tax credit structures, 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, other liabilities, and long-
term debt, as appropriate.
Table 8.2 provides 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
following table where we have determined that our continuing
involvement is not significant due to the temporary nature and
size of our variable interests, because we were not the transferor
or because we were not involved in the design of the
unconsolidated VIEs. We also exclude from the table secured
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