TWO Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Restricted Cash (Notes)

Restricted Cash (Notes)

9 Months Ended

Sep. 30, 2014

Cash and Cash Equivalents Disclosure [Text Block]

Restricted Cash

The Company is required to maintain certain cash balances with counterparties for securities and derivatives trading activity and collateral for the Company’s repurchase agreements and FHLB advances in restricted accounts. The Company has also placed cash in a restricted account pursuant to a letter of credit on an office space lease.

The following table presents the Company’s restricted cash balances as of September 30, 2014 and December 31, 2013:



(in thousands)	September 30, 2014		December 31, 2013
Restricted cash balances held by trading counterparties:
For securities trading activity	$	9,000	$	9,000
For derivatives trading activity	207,780		191,107
As restricted collateral for repurchase agreements and Federal Home Loan Bank advances	93,295		201,194
	310,075		401,301
Restricted cash balance pursuant to letter of credit on office lease	346		346
Total	$	310,421	$	401,647

- Definition

The entire disclosure for cash and cash equivalent footnotes, which may include the types of deposits and money market instruments, applicable carrying amounts, restricted amounts and compensating balance arrangements. Cash and equivalents include: (1) currency on hand (2) demand deposits with banks or financial institutions (3) other kinds of accounts that have the general characteristics of demand deposits (4) short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments maturing within three months from the date of acquisition qualify.

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