JPM Earnings – Earning Interest on Borrowings?

As most people know, banks pay interest on liabilities (deposits) and earn interest on assets (loans).
A friend alerted me to an interesting line in their 8k which I’m sure some bank balance sheet expert can shed more light on.
So there are two sections on the balance sheet for interest rates.  The first is “Interest-Earning Assets” – which lists the assets that JPM earned interest on, and the rates earned:
Interest-Earning Assets
Deposits with banks:  .85%
Fed Funds Sold and Securities Purchased under Resale agreements: .92%
Securities Borrowed:  .22%
Trading Assets (debt instruments):  4.37%
Securities: 2.67%
Loans: 5.71%
Other assets: 1.57%
Total Interest Earning Assets:  3.75%
Right below that section is “Interest-Bearing Liabilities”

Interest-Bearing Liabilities

Interest bearing deposits: .51%
Fed Funds Purchased and Securities Sold under Repurchase Agreements: NEGATIVE .28%
Commercial Paper:  .20%
Trading Liabilities (Debt Instruments): 2.64%
Other borrowings/Liabilities: .54%
Beneficial Interests (VIEs) : 1.36%
Long Term Debt: 2.34%
Total  Interest Bearing Liabilities: .81%
There’s a footnote under the Fed Funds Purchased that says “Reflects a benefit from the favorable market environment from dollar-roll financings.”
This is the root of my intrigue here:  JPM actually earned money (ie, they paid negative interest) on that line item under liabilities.  They got paid to borrow money!
From the two tables, you can see that JPM got paid 28bps to “purchase” (borrow) Fed Funds, and “sold” (lent) Fed Funds at 92bps!  That’s a nice money printing machine!
Is this related to stock loan (or fixed income loan) somehow – is that what the repurchase agreement refers to?  Or just regular overnight open market operations?  Anyone?  Thoughts?  Did the Fed pay JPM to borrow money, which JPM then lent to other banks and got paid again for?  (I doubt it, but I don’t know)  What does that “dollar-roll financings” footnote mean?  If they benefited on their borrowings from favorable dollar-roll financings, then why didn’t they get hit on their loans by the same phenomenon?
Anyone?  Beuller?

EDIT:  is this related to the 25bps that the Fed pays on excess reserves on deposit?


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