Wells Fargo 2012 Annual Report Download - page 191

required to maintain with these organizations. We have not
recorded a liability for these arrangements as of the dates
presented in the previous table because we believe the likelihood
of loss is remote.
We also have contingent performance arrangements related
to various customer relationships and lease transactions. We are
required to pay the counterparties to these agreements if third
parties default on certain obligations.
Pledged Assets and Collateral
As part of our liquidity management strategy, we pledge assets to
secure trust and public deposits, borrowings from the FHLB and
FRB and for other purposes as required or permitted by law. The
following table provides pledged loans and securities available
for sale where the secured party does not have the right to sell or
repledge the collateral. At December 31, 2012, and 2011, we did
not pledge any loans or securities available for sale where the
secured party has the right to sell or repledge the collateral. The
table excludes pledged assets related to VIEs, which can only be
used to settle the liabilities of those entities. See Note 8 for
additional information on consolidated VIE assets.
December 31,
(in millions) 2012 2011
Securities available for sale $ 96,018 80,540
Loans 360,171 317,742
Total $ 456,189 398,282
We also pledge certain financial instruments that we own to
collateralize repurchase agreements and other securities
financings. The types of collateral we pledge include securities
issued by federal agencies, government-sponsored entities
(GSEs), and domestic and foreign companies. We pledged
$27.4 billion at December 31, 2012, and $20.8 billion at
December 31, 2011, under agreements that permit the secured
parties to sell or repledge the collateral. Pledged collateral where
the secured party cannot sell or repledge was $677 million and
$2.8 billion at the same period ends, respectively.
We receive collateral from other entities under short-term
(generally less than one year) and long-term resale agreements
and securities borrowings. At December 31, 2012 and 2011, we
have received $46.6 billion and $31.1 billion, respectively, in
collateral that we have the right to sell or repledge, of which
$15.5 billion and $13.3 billion, respectively, are for long-term
resale agreements. These amounts include securities we have
sold or repledged to others with a fair value of $29.7 billion at
December 31, 2012, and $16.7 billion at December 31, 2011.
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