Bank of America 2008 Annual Report Download - page 179

Recurring Fair Value
Assets and liabilities measured at fair value on a recurring basis, including financial instruments for which the Corporation accounts for in accordance
with SFAS 159 are summarized below:
December 31, 2008
Fair Value Measurements Using
(Dollars in millions) Level 1 Level 2 Level 3
Netting
Adjustments
(1)
Assets/Liabilities
at Fair Value
Assets
Federal funds sold and securities purchased under agreements to resell
$– $ 2,330 $ – $ – $ 2,330
Trading account assets 44,889 107,315 7,318 – 159,522
Derivative assets 2,109 1,525,106 8,289 (1,473,252) 62,252
Available-for-sale debt securities 2,789 255,413 18,702 – 276,904
Loans and leases
(2)
– – 5,413 – 5,413
Mortgage servicing rights – – 12,733 – 12,733
Loans held-for-sale – 15,582 3,382 – 18,964
Other assets
(3)
25,089 1,245 3,572 – 29,906
Total assets $ 74,876 $1,906,991 $ 59,409 $(1,473,252) $ 568,024
Liabilities
Interest-bearing deposits in domestic offices $– $ 1,717 $ – $ – $ 1,717
Trading account liabilities 42,974 14,313 – – 57,287
Derivative liabilities 4,872 1,488,509 6,019 (1,468,691) 30,709
Accrued expenses and other liabilities 38 – 1,940 – 1,978
Total liabilities $ 47,884 $1,504,539 $ 7,959 $(1,468,691) $ 91,691
December 31, 2007
Assets
Federal funds sold and securities purchased under agreements to resell $– $ 2,578 $ – $ – $ 2,578
Trading account assets 42,986 115,051 4,027 – 162,064
Derivative assets 516 442,471 8,972 (417,297) 34,662
Available-for-sale debt securities 2,089 205,734 5,507 – 213,330
Loans and leases
(2)
– – 4,590 – 4,590
Mortgage servicing rights – – 3,053 – 3,053
Loans held-for-sale – 14,431 1,334 – 15,765
Other assets
(3)
19,796 1,540 3,987 – 25,323
Total assets $65,387 $ 781,805 $31,470 $ (417,297) $461,365
Liabilities
Interest-bearing deposits in domestic offices $– $ 2,000 $ – $ – $ 2,000
Trading account liabilities 57,331 20,011 – – 77,342
Derivative liabilities 534 426,223 10,175 (414,509) 22,423
Accrued expenses and other liabilities – – 660 – 660
Total liabilities $57,865 $ 448,234 $10,835 $ (414,509) $102,425
(1) Amounts represent the impact of legally enforceable master netting agreements that allow the Corporation to settle positive and negative positions and also cash collateral held or placed with the same counterparties.
(2) Loans and leases at December 31, 2008 and December 31, 2007 included $22.4 billion and $22.6 billion of leases that were not eligible for the fair value option as leases are specifically excluded from fair value
option election in accordance with SFAS 159.
(3) Other assets include equity investments held by Principal Investing, AFS equity securities and certain retained residual interests in securitization vehicles, including interest-only strips. Substantially all of other assets
are eligible for, and the Corporation has not chosen to elect, fair value accounting at December 31, 2008 and 2007.
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