JP Morgan Chase 2013 Annual Report Download - page 250

Notes to consolidated financial statements
256 JPMorgan Chase & Co./2013 Annual Report
The following table presents information as of December 31, 2013 and 2012, regarding the securities purchased under resale
agreements and securities borrowed for which an appropriate legal opinion has been obtained with respect to the master
netting agreement. The below table excludes information related to resale agreements and securities borrowed where such a
legal opinion has not been either sought or obtained.
2013 2012
Amounts not nettable on
the Consolidated Balance
Sheets(a)
Amounts not nettable on
the Consolidated Balance
Sheets(a)
December 31, (in millions) Net asset balance Financial instruments(b) Cash collateral Net exposure Net asset balance Financial instruments(b) Cash collateral Net exposure
Securities purchased under
resale agreements with an
appropriate legal opinion $ 239,406 $ (234,495) $ (98) $ 4,813 $ 284,430 $ (282,468) $ (998) $ 964
Securities borrowed $ 84,531 $ (81,127) $ — $ 3,404 $ 90,609 $ (87,651) $ — $ 2,958
(a) For some counterparties, the sum of the financial instruments and cash collateral not nettable on the Consolidated Balance Sheets may exceed the net
asset balance. Where this is the case the total amounts reported in these two columns are limited to the balance of the net reverse repurchase agreement
or securities borrowed asset with that counterparty. As a result a net exposure amount is reported even though the Firm, on an aggregate basis for its
securities purchased under resale agreements and securities borrowed, has received securities collateral with a total fair value that is greater than the
funds provided to counterparties.
(b) Includes financial instrument collateral received, repurchase liabilities and securities loaned liabilities with an appropriate legal opinion with respect to the
master netting agreement; these amounts are not presented net on the Consolidated Balance Sheets because other U.S. GAAP netting criteria are not met.
The following table presents as of December 31, 2013 and 2012, the gross and net securities sold under repurchase
agreements and securities loaned. Securities sold under repurchase agreements have been presented on the Consolidated
Balance Sheets net of securities purchased under resale agreements where the Firm has obtained an appropriate legal opinion
with respect to the master netting agreement, and where the other relevant criteria have been met. Where such a legal opinion
has not been either sought or obtained, the securities sold under repurchase agreements are not eligible for netting and are
shown separately in the table below. Securities loaned are presented on a gross basis on the Consolidated Balance Sheets.
2013 2012
December 31, (in millions) Gross liability balance
Amounts
netted on the
Consolidated
Balance
Sheets Net liability balance Gross liability balance
Amounts
netted on the
Consolidated
Balance
Sheets Net liability balance
Securities sold under repurchase agreements
Securities sold under repurchase agreements
with an appropriate legal opinion $ 261,265 $ (115,408) $ 145,857 $ 301,352 $ (96,947) $ 204,405
Securities sold under repurchase agreements
where an appropriate legal opinion has not
been either sought or obtained(a) 14,508 14,508 11,155 11,155
Total securities sold under repurchase
agreements $ 275,773 $ (115,408) $ 160,365 (c) $ 312,507 $ (96,947) $ 215,560 (c)
Securities loaned(b) $ 25,769 N/A $ 25,769 (d)(e) $ 30,458 N/A $ 30,458 (d)(e)
(a) Includes repurchase agreements that are not subject to a master netting agreement but do provide rights to collateral.
(b) Included securities-for-securities borrow vs. pledge transactions of $5.8 billion and $6.9 billion at December 31, 2013 and 2012, respectively, when
acting as lender and as presented within other liabilities in the Consolidated Balance Sheets.
(c) At December 31, 2013 and 2012, included securities sold under repurchase agreements of $4.9 billion and $3.9 billion, respectively, accounted for at fair
value.
(d) At December 31, 2013 and 2012, included securities loaned of $483 million and $457 million, respectively, accounted for at fair value.
(e) Included $397 million and $889 million at December 31, 2013 and 2012, respectively, of securities loaned where an appropriate legal opinion has not
been either sought or obtained with respect to the master netting agreement.