Wells Fargo 2013 Annual Report Download - page 186

Note 8: Securitizations and Variable Interest Entities (continued)
The classifications of assets and liabilities in our balance sheet associated with our transactions with VIEs follow:
(in millions)
VIEs that we
do not
consolidate
VIEs
that we
consolidate
Transfers that
we account
for as secured
borrowings Total
December 31, 2013
Cash $ - 165 7 172
Trading assets 1,206 162 193 1,561
Investment securities (1) 18,795 1,352 8,976 29,123
Mortgages held for sale - 38 - 38
Loans 7,652 6,058 6,021 19,731
Mortgage servicing rights 14,859 --14,859
Other assets 6,151 347 110 6,608
Total assets 48,663 8,122 15,307 72,092
Short-term borrowings - 29 (2) 7,871 7,900
Accrued expenses and other liabilities 3,464 99 (2) 3 3,566
Long-term debt - 2,356 (2) 5,673 8,029
Total liabilities 3,464 2,484 13,547 19,495
Noncontrolling interests - 5 - 5
Net assets $ 45,199 5,633 1,760 52,592
December 31, 2012
Cash $ - 260 30 290
Trading assets 1,902 114 218 2,234
Investment securities (1) 19,900 2,772 14,848 37,520
Mortgages held for sale - 469 -469
Loans 9,841 10,553 7,088 27,482
Mortgage servicing rights 11,114 - - 11,114
Other assets 4,993 457 161 5,611
Total assets 47,750 14,625 22,345 84,720
Short-term borrowings -2,059 (2) 13,228 15,287
Accrued expenses and other liabilities 3,441 901 (2) 20 4,362
Long-term debt -3,483 (2) 6,520 10,003
Total liabilities 3,441 6,443 19,768 29,652
Noncontrolling interests -48 -48
Net assets $ 44,309 8,134 2,577 55,020
(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) Includes the following VIE liabilities at December 31, 2013 and 2012, respectively, with recourse to the general credit of Wells Fargo: Short-term borrowings, $0 and
$2.1 billion; Accrued expenses and other liabilities, $9 million and $767 million; and Long-term debt, $29 million and $29 million.
Transactions with Unconsolidated VIEs
Our transactions with VIEs include securitizations of residential
mortgage loans, CRE loans, student loans and auto loans and
leases; investment and financing activities involving
collateralized debt obligations (CDOs) backed by asset-backed
and CRE securities, collateralized loan obligations (CLOs)
backed by corporate loans, and other types of structured
financing. We have various forms of involvement with VIEs,
including 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 and other
liabilities, as appropriate.
The following tables provide 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 or if we were the sponsor but
do not have any other significant continuing 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 held outside of trading, loans, guarantees, liquidity
agreements, written options and servicing of collateral to be
other forms of involvement that may be significant. We have
184