Offsetting Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Offsetting Assets and Liabilities [Abstract]

Offsetting Assets and Liabilities [Table Text Block]

The following table presents information about these transactions to enable the users of the Company’s consolidated financial statements to evaluate the potential effect of rights of set-off between these recognized assets and liabilities (dollars in millions):


							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets and Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets⁽¹⁾		Financial Instruments		Collateral Received or Pledged (Including Cash)		Net Amount
June 30, 2020:
Assets:
Securities purchased under agreements to resell ⁽²⁾	$	2,600	$	—	$	2,600	$	—	$	(2,600)	$	—
Securities borrowed⁽³⁾	634		—		634		(171)		(437)		26

Total	$	3,234	$	—	$	3,234	$	(171)	$	(3,037)	$	26


Liabilities:
Securities loaned⁽⁴⁾	$	1,409	$	—	$	1,409	$	(171)	$	(1,112)	$	126
Total	$	1,409	$	—	$	1,409	$	(171)	$	(1,112)	$	126


December 31, 2019:
Assets:
Securities purchased under agreements to resell⁽²⁾	$	200	$	—	$	200	$	—	$	(200)	$	—
Securities borrowed⁽³⁾	1,116		—		1,116		(83)		(1,003)		30
Total	$	1,316	$	—	$	1,316	$	(83)	$	(1,203)	$	30

Liabilities:

Securities loaned⁽⁴⁾	$	838	$	—	$	838	$	(83)	$	(699)	$	56
Total	$	838	$	—	$	838	$	(83)	$	(699)	$	56

(1)The vast majority of the net amount of cash collateral paid for securities borrowed are reflected in the receivables from brokers, dealers and clearing organizations line item while the cash collateral paid for securities borrowed under the fully paid lending program are reflected in other assets. Cash collateral received for securities loaned are reflected in the payables to brokers, dealers and clearing organizations line item in the consolidated balance sheets.

(2)Securities purchased under agreements to resell were over-collateralized at June 30, 2020 and December 31, 2019, as the market value of the securities received by the Company was $2.6 billion and $206 million, respectively. Securities purchased under agreements to resell at June 30, 2020 and December 31, 2019 were included in the cash and investments segregated under federal or other regulations line item and the other assets line item, respectively, in the consolidated balance sheets.

(3)Included in the gross amounts of cash collateral paid for securities borrowed was $175 million and $757 million at June 30, 2020 and December 31, 2019, respectively, transacted through a program with a clearing organization, which guarantees the return of cash to the Company. For presentation purposes, these amounts presented are based on the counterparties under the Company’s master securities loan agreements.

(4)Included in the gross amounts of cash collateral received for securities loaned was $784 million and $401 million at June 30, 2020 and December 31, 2019, respectively, transacted through a program with a clearing organization, which guarantees the return of securities to the Company. For presentation purposes, these amounts presented are based on the counterparties under the Company’s master securities loan agreements.

E TRADE FINANCIAL CORP 10-Q