JP Morgan Chase 2014 Annual Report Download - page 270

Notes to consolidated financial statements
268 JPMorgan Chase & Co./2014 Annual Report
VIEs sponsored by third parties
The Firm enters into transactions with VIEs structured by
other parties. These include, for example, acting as a
derivative counterparty, liquidity provider, investor,
underwriter, placement agent, trustee or custodian. These
transactions are conducted at arm’s-length, and individual
credit decisions are based on the analysis of the specific
VIE, taking into consideration the quality of the underlying
assets. Where the Firm does not have the power to direct
the activities of the VIE that most significantly impact the
VIE’s economic performance, or a variable interest that
could potentially be significant, the Firm records and
reports these positions on its Consolidated balance sheets
similarly to the way it would record and report positions in
respect of any other third-party transaction.
Consolidated VIE assets and liabilities
The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of December 31,
2014 and 2013.
Assets Liabilities
December 31, 2014 (in billions)(a) Trading assets Loans Other(c)
Total
assets(d)
Beneficial
interests in
VIE assets(e) Other(f)
Total
liabilities
VIE program type
Firm-sponsored credit card trusts $ — $ 48.3 $ 0.7 $ 49.0 $ 31.2 $ — $ 31.2
Firm-administered multi-seller conduits — 17.7 0.1 17.8 12.0 — 12.0
Municipal bond vehicles 5.3 — — 5.3 4.9 — 4.9
Mortgage securitization entities(b) 3.3 0.7 — 4.0 2.1 0.8 2.9
Student loan securitization entities 0.2 2.2 — 2.4 2.1 — 2.1
Other 0.3 — 1.0 1.3 0.1 0.1 0.2
Total $ 9.1 $ 68.9 $ 1.8 $ 79.8 $ 52.4 $ 0.9 $ 53.3
Assets Liabilities
December 31, 2013 (in billions)(a) Trading assets Loans Other(c)
Total
assets(d)
Beneficial
interests in
VIE assets(e) Other(f)
Total
liabilities
VIE program type
Firm-sponsored credit card trusts $ — $ 46.9 $ 1.1 $ 48.0 $ 26.6 $ — $ 26.6
Firm-administered multi-seller conduits — 19.0 0.1 19.1 14.9 — 14.9
Municipal bond vehicles 3.4 — — 3.4 2.9 — 2.9
Mortgage securitization entities(b) 2.3 1.7 — 4.0 2.9 0.9 3.8
Student loan securitization entities — 2.4 0.1 2.5 2.2 — 2.2
Other 0.7 0.1 0.9 1.7 0.1 0.2 0.3
Total $ 6.4 $ 70.1 $ 2.2 $ 78.7 $ 49.6 $ 1.1 $ 50.7
(a) Excludes intercompany transactions, which were eliminated in consolidation.
(b) Includes residential and commercial mortgage securitizations as well as re-securitizations.
(c) Includes assets classified as cash, derivative receivables, AFS securities, and other assets within the Consolidated balance sheets.
(d) The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The difference between total
assets and total liabilities recognized for consolidated VIEs represents the Firm’s interest in the consolidated VIEs for each program type.
(e) The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified in the line item on the Consolidated balance sheets titled,
“Beneficial interests issued by consolidated variable interest entities.” The holders of these beneficial interests do not have recourse to the general credit
of JPMorgan Chase. Included in beneficial interests in VIE assets are long-term beneficial interests of $35.4 billion and $31.8 billion at December 31,
2014 and 2013, respectively. The maturities of the long-term beneficial interests as of December 31, 2014, were as follows: $10.9 billion under one year,
$19.0 billion between one and five years, and $5.5 billion over five years, all respectively.
(f) Includes liabilities classified as accounts payable and other liabilities in the Consolidated balance sheets.