JP Morgan Chase 2015 Annual Report Download - page 249

JPMorgan Chase & Co./2015 Annual Report 239
The following table presents as of December 31, 2015 and 2014, the gross and net securities purchased under resale
agreements and securities borrowed. Securities purchased under resale agreements have been presented on the Consolidated
balance sheets net of securities sold under repurchase 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 purchased under resale agreements are not eligible for netting and are
shown separately in the table below. Securities borrowed are presented on a gross basis on the Consolidated balance sheets.
2015 2014
December 31, (in millions)
Gross asset
balance
Amounts
netted on the
Consolidated
balance
sheets
Net asset
balance
Gross asset
balance
Amounts
netted on the
Consolidated
balance
sheets
Net asset
balance
Securities purchased under resale agreements
Securities purchased under resale agreements with
an appropriate legal opinion $ 365,805 $ (156,258) $ 209,547 $ 347,142 $ (142,719) $ 204,423
Securities purchased under resale agreements where
an appropriate legal opinion has not been either
sought or obtained 2,343 2,343 10,598 10,598
Total securities purchased under resale agreements $ 368,148 $ (156,258) $ 211,890 (a) $ 357,740 $ (142,719) $ 215,021 (a)
Securities borrowed $ 98,721 NA $ 98,721 (b)(c) $ 110,435 NA $ 110,435 (b)(c)
(a) At December 31, 2015 and 2014, included securities purchased under resale agreements of $23.1 billion and $28.6 billion, respectively, accounted for at fair value.
(b) At December 31, 2015 and 2014, included securities borrowed of $395 million and $992 million, respectively, accounted for at fair value.
(c) Included $31.3 billion and $35.3 billion at December 31, 2015 and 2014, respectively, of securities borrowed where an appropriate legal opinion has not been
either sought or obtained with respect to the master netting agreement.
The following table presents information as of December 31, 2015 and 2014, 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.
2015 2014
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 $ 209,547 $ (206,423) $ (351) $ 2,773 $ 204,423 $ (201,375) $ (246) $ 2,802
Securities borrowed $ 67,453 $ (65,081) $ — $ 2,372 $ 75,113 $ (72,730) $ — $ 2,383
(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.