JP Morgan Chase 2015 Annual Report Download - page 281

JPMorgan Chase & Co./2015 Annual Report 271
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, remarketing 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,
2015 and 2014.
Assets Liabilities
December 31, 2015 (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 $ — $ 47.4 $ 0.7 $ 48.1 $ 27.9 $ — $ 27.9
Firm-administered multi-seller conduits — 24.4 — 24.4 8.7 — 8.7
Municipal bond vehicles 2.7 — — 2.7 2.6 — 2.6
Mortgage securitization entities(b) 0.8 1.4 — 2.2 0.8 0.7 1.5
Student loan securitization entities — 1.9 0.1 2.0 1.8 — 1.8
Other 0.2 — 2.0 2.2 0.1 0.1 0.2
Total $ 3.7 $ 75.1 $ 2.8 $ 81.6 $ 41.9 $ 0.8 $ 42.7
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 — 0.2 0.2
Total $ 9.1 $ 68.9 $ 1.8 $ 79.8 $ 52.3 $ 1.0 $ 53.3
(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, 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 $30.6 billion and $35.4 billion at December 31,
2015 and 2014, respectively. The maturities of the long-term beneficial interests as of December 31, 2015, were as follows: $5.1 billion under one year,
$21.6 billion between one and five years, and $3.9 billion over five years, all respectively.
(f) Includes liabilities classified as accounts payable and other liabilities in the Consolidated balance sheets.