Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Entity Registrant Name | 'E TRADE FINANCIAL CORP | ' |
Entity Central Index Key | '0001015780 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Common stock shares outstanding | ' | 288,532,837 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_STATEMENT_OF_INCO
CONSOLIDATED STATEMENT OF INCOME (USD $) | 3 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue: | ' | ' |
Operating interest income | $322 | $300 |
Operating interest expense | -56 | -59 |
Net operating interest income | 266 | 241 |
Commissions | 128 | 101 |
Fees and service charges | 47 | 32 |
Principal transactions | 10 | 22 |
Gains on loans and securities, net | 15 | 16 |
Other-than-temporary impairment (OTTI) | 0 | -1 |
Less: noncredit portion of OTTI recognized into (out of) other comprehensive income (loss) (before tax) | 0 | 0 |
Net impairment | 0 | -1 |
Other revenues | 9 | 9 |
Total non-interest income | 209 | 179 |
Total net revenue | 475 | 420 |
Provision for loan losses | 4 | 43 |
Operating expense: | ' | ' |
Compensation and benefits | 98 | 96 |
Advertising and market development | 34 | 37 |
Clearing and servicing | 28 | 32 |
FDIC insurance premiums | 24 | 29 |
Professional services | 24 | 17 |
Occupancy and equipment | 18 | 18 |
Communications | 18 | 18 |
Depreciation and amortization | 21 | 23 |
Amortization of other intangibles | 5 | 6 |
Facility restructuring and other exit activities | 3 | 7 |
Other operating expenses | 17 | 12 |
Total operating expense | 290 | 295 |
Income before other income (expense) and income tax expense | 181 | 82 |
Other income (expense): | ' | ' |
Corporate interest expense | -28 | -29 |
Losses on early extinguishment of debt | -12 | 0 |
Equity in income of investments and other | 3 | 4 |
Total other income (expense) | -37 | -25 |
Income before income tax expense | 144 | 57 |
Income tax expense | 47 | 22 |
Net income | $97 | $35 |
Basic earnings per share (in dollars per share) | $0.34 | $0.12 |
Diluted earnings per share (in dollars per share) | $0.33 | $0.12 |
Shares used in computation of per share data: | ' | ' |
Basic (in thousands) | 288,051 | 286,626 |
Diluted (in thousands) | 293,819 | 291,696 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Statement of Comprehensive Income [Abstract] | ' | ' | ||
Net income | $97 | $35 | ||
Available-for-sale securities: | ' | ' | ||
OTTI, net(1) | 0 | [1] | 1 | [1] |
Noncredit portion of OTTI reclassification (into) out of other comprehensive income, net(2) | 0 | [2] | 0 | [2] |
Unrealized gains (losses), net(3) | 81 | [3] | -6 | [3] |
Reclassification into earnings, net(4) | -12 | [4] | -10 | [4] |
Net change from available-for-sale securities | 69 | -15 | ||
Cash flow hedging instruments: | ' | ' | ||
Unrealized gains (losses), net(5) | -16 | [5] | 6 | [5] |
Reclassification into earnings, net(6) | 21 | [6] | 20 | [6] |
Net change from cash flow hedging instruments | 5 | 26 | ||
Other comprehensive income | 74 | 11 | ||
Comprehensive income | $171 | $46 | ||
[1] | (1)Amounts are net of benefit from income taxes of $0 and less than $1 million for the three months ended March 31, 2014 and 2013, respectively. | |||
[2] | Amounts are net of benefit from income taxes of $0 and less than $1 million for the three months ended March 31, 2014 and 2013, respectively. | |||
[3] | Amounts are net of provision for income taxes of $50 million and benefit from income taxes of $4 million for the three months ended March 31, 2014 and 2013, respectively | |||
[4] | Amounts are net of provision for income taxes of $7 million and $6 million for the three months ended March 31, 2014 and 2013, respectively. | |||
[5] | Amounts are net of benefit from incomes taxes of $11 million and provision for income taxes of $4 million for the three months ended March 31, 2014 and 2013, respectively. | |||
[6] | Amounts are net of benefit from income taxes of $14 million and $13 million for the three months ended March 31, 2014 and 2013, respectively. |
CONSOLIDATED_STATEMENT_OF_COMP1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (PARENTHETICAL) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Consolidated Statement Of Comprehensive Income Loss Parenthetical [Abstract] | ' | ' |
Income tax of OTTI, net | $0 | $1,000,000 |
Income tax of noncredit portion of OTTI reclassification out of (into) other comprehensive loss, net | 0 | -1,000,000 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 50,000,000 | -4,000,000 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | 7,000,000 | 6,000,000 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 11,000,000 | -4,000,000 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax | ($14,000,000) | ($13,000,000) |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and equivalents | $1,585 | $1,838 |
Cash required to be segregated under federal or other regulations | 981 | 1,066 |
Available-for-sale securities | 12,766 | 13,592 |
Held-to-maturity securities (fair value of $11,254 and $10,092 at March 31, 2014 and December 31, 2013, respectively) | 11,248 | 10,181 |
Margin receivables | 7,346 | 6,353 |
Loans held-for-sale | 795 | 0 |
Loans receivable, net (net of allowance for loan losses of $403 and $453 at March 31, 2014 and December 31, 2013, respectively) | 6,982 | 8,123 |
Investment in FHLB stock | 56 | 61 |
Property and equipment, net | 224 | 237 |
Goodwill | 1,792 | 1,792 |
Other intangibles, net | 210 | 216 |
Other assets | 2,453 | 2,821 |
Total assets | 46,438 | 46,280 |
Liabilities: | ' | ' |
Deposits | 25,749 | 25,971 |
Securities sold under agreements to repurchase | 4,345 | 4,543 |
Customer payables | 6,260 | 6,310 |
FHLB advances and other borrowings | 1,287 | 1,279 |
Corporate debt | 1,769 | 1,768 |
Other liabilities | 1,996 | 1,553 |
Total liabilities | 41,406 | 41,424 |
Commitments and contingencies (see Note 13) | ' | ' |
Shareholders’ equity: | ' | ' |
Common stock, $0.01 par value, shares authorized: 400,000,000 at March 31, 2014 and December 31, 2013; shares issued and outstanding: 288,519,125 and 287,357,001 at March 31, 2014 and December 31, 2013, respectively | 3 | 3 |
Additional paid-in-capital (APIC) | 7,333 | 7,328 |
Accumulated deficit | -1,925 | -2,022 |
Accumulated other comprehensive loss | -379 | -453 |
Total shareholders’ equity | 5,032 | 4,856 |
Total liabilities and shareholders’ equity | $46,438 | $46,280 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
ASSETS | ' | ' |
Held-to-maturity Securities, Fair Value | $11,254 | $10,092 |
Allowance for loan losses | $403 | $453 |
Shareholders’ equity: | ' | ' |
Common stock par value | $0.01 | $0.01 |
Common stock shares authorized | 400,000,000 | 400,000,000 |
Common stock shares issued | 288,519,125 | 287,357,001 |
Common stock shares outstanding | 288,519,125 | 287,357,001 |
CONSOLIDATED_STATEMENT_OF_SHAR
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Share data in Millions, unless otherwise specified | |||||
Balance, at Dec. 31, 2012 | $4,904,000,000 | $3,000,000 | $7,319,000,000 | ($2,108,000,000) | ($310,000,000) |
Balance, (in shares) at Dec. 31, 2012 | ' | 286 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 35,000,000 | ' | ' | 35,000,000 | ' |
Other comprehensive income | 11,000,000 | ' | ' | ' | 11,000,000 |
Exercise of stock options and related tax effects | -3,000,000 | 0 | -3,000,000 | ' | ' |
Issuance of restricted stock, net of forfeitures and retirements to pay taxes | -4,000,000 | 0 | -4,000,000 | ' | ' |
Issuance of restricted stock, net of forfeitures and retirements to pay taxes, shares | ' | 1 | ' | ' | ' |
Share-based compensation | 9,000,000 | ' | 9,000,000 | ' | ' |
Balance, at Mar. 31, 2013 | 4,952,000,000 | 3,000,000 | 7,321,000,000 | -2,073,000,000 | -299,000,000 |
Balance, (in shares) at Mar. 31, 2013 | ' | 287 | ' | ' | ' |
Balance, at Dec. 31, 2013 | 4,856,000,000 | 3,000,000 | 7,328,000,000 | -2,022,000,000 | -453,000,000 |
Balance, (in shares) at Dec. 31, 2013 | ' | 287 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 97,000,000 | ' | ' | 97,000,000 | ' |
Other comprehensive income | 74,000,000 | ' | ' | ' | 74,000,000 |
Conversion of convertible debentures | 1,000,000 | 0 | 1,000,000 | ' | ' |
Exercise of stock options and related tax effects | 6,000,000 | 0 | 6,000,000 | ' | ' |
Exercise of stock options and related tax effects, shares | ' | 1 | ' | ' | ' |
Issuance of restricted stock, net of forfeitures and retirements to pay taxes | -10,000,000 | 0 | -10,000,000 | ' | ' |
Issuance of restricted stock, net of forfeitures and retirements to pay taxes, shares | ' | 1 | ' | ' | ' |
Share-based compensation | 8,000,000 | ' | 8,000,000 | ' | ' |
Balance, at Mar. 31, 2014 | $5,032,000,000 | $3,000,000 | $7,333,000,000 | ($1,925,000,000) | ($379,000,000) |
Balance, (in shares) at Mar. 31, 2014 | ' | 289 | ' | ' | ' |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $97 | $35 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Provision for loan losses | 4 | 43 |
Depreciation and amortization (including discount amortization and accretion) | 79 | 114 |
Net impairment and gains on loans and securities, net | -15 | -15 |
Equity in income of investments and other | -3 | -4 |
Share-based compensation | 8 | 9 |
Deferred taxes | 36 | 18 |
Net effect of changes in assets and liabilities: | ' | ' |
Decrease in cash required to be segregated under federal or other regulations | 85 | 58 |
(Increase) decrease in margin receivables | -993 | 55 |
(Decrease) increase in customer payables | -50 | 119 |
Proceeds from sales of loans held-for-sale | 4 | 2 |
Net decrease in trading securities | ' | -1 |
Decrease in other assets | 46 | 102 |
Increase (decrease) in other liabilities | 559 | -78 |
Net cash (used in) provided by operating activities | -143 | 459 |
Cash flows from investing activities: | ' | ' |
Purchases of available-for-sale securities | -279 | -1,977 |
Proceeds from sales, maturities of and principal payments on available-for-sale securities | 1,281 | 2,682 |
Purchases of held-to-maturity securities | -1,302 | -929 |
Proceeds from maturities of and principal payments on held-to-maturity securities | 227 | 594 |
Net decrease in loans receivable | 341 | 414 |
Capital expenditures for property and equipment | -7 | -15 |
Proceeds from sale of G1 Execution Services, Inc. | 76 | ' |
Cash transferred on sale of G1 Execution Services, Inc. | -9 | ' |
Proceeds from sale of real estate owned and repossessed assets | 10 | 22 |
Net cash flow from derivatives hedging assets | -6 | 4 |
Other | 5 | 6 |
Net cash provided by investing activities | 337 | 801 |
Cash flows from financing activities: | ' | ' |
Net decrease in deposits | -222 | -2,515 |
Net (decrease) increase in securities sold under agreements to repurchase | -198 | 5 |
Advances from FHLB | 220 | 170 |
Payments on advances from FHLB | -220 | -170 |
Net cash flow from derivatives hedging liabilities | -32 | -4 |
Other | 5 | ' |
Net cash used in financing activities | -447 | -2,514 |
Decrease in cash and equivalents | -253 | -1,254 |
Cash and equivalents, beginning of period | 1,838 | 2,762 |
Cash and equivalents, end of period | 1,585 | 1,508 |
Supplemental Cash Flow Information [Abstract] | ' | ' |
Cash paid for interest | 53 | 39 |
Cash paid for income taxes | ' | 1 |
Non-cash investing and financing activities: | ' | ' |
Transfers of loans held-for-investment to loans held-for-sale | 795 | 41 |
Transfers from loans to other real estate owned and repossessed assets | 16 | 19 |
Transfers from other real estate owned and repossessed assets to loans | 16 | ' |
Conversion of convertible debentures to common stock | $1 | ' |
Organization_Basis_of_Presenta
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Organization—E*TRADE Financial Corporation is a financial services company that provides brokerage and related products and services primarily to individual retail investors under the brand "E*TRADE Financial." The Company also provides investor-focused banking products, primarily sweep deposits and savings products, to retail investors. | |
On February 10, 2014, the Company completed the sale of its subsidiary G1 Execution Services, LLC, a registered broker-dealer and market maker, to an affiliate of Susquehanna. The sale generated cash proceeds of $76 million. | |
Basis of Presentation—The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries as determined under the voting interest model. Entities in which the Company holds at least a 20% ownership interest or in which there are other indicators of significant influence are generally accounted for by the equity method. Entities in which the Company holds less than a 20% ownership interest and does not have the ability to exercise significant influence are generally carried at cost. Intercompany accounts and transactions are eliminated in consolidation. The Company also evaluates its continuing involvement with certain entities to determine if the Company is required to consolidate the entities under the variable interest entity model. This evaluation is based on a qualitative assessment of whether the Company has both: 1) the power to direct matters that most significantly impact the activities of the variable interest entity; and 2) the obligation to absorb losses or the right to receive benefits of the variable interest entity that could potentially be significant to the variable interest entity. | |
Certain prior period items in these consolidated financial statements have been reclassified to conform to the current period presentation. These consolidated financial statements reflect all adjustments, which are all normal and recurring in nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. | |
At the end of June 2013, the Company decided to exit its market making business, G1 Execution Services, LLC, and reclassified the assets and liabilities of the market making business to held-for-sale. The assets and liabilities of the market making business are presented in the other assets and other liabilities line items, respectively, at December 31, 2013 on the consolidated balance sheet. The sale of the market making business was completed on February 10, 2014. For additional information on the market making business, see Note 2—Disposition. | |
The Company reports corporate interest expense separately from operating interest expense. The Company believes reporting these items separately provides a clearer picture of the financial performance of the Company’s operations than would a presentation that combined these two items. Operating interest expense is generated from the operations of the Company. Corporate debt, which is the primary source of corporate interest expense, has been issued primarily in connection with recapitalization transactions and past acquisitions. | |
Similarly, the Company reports gains on sales of investments, net separately from gains on loans and securities, net. The Company believes reporting these two items separately provides a clearer picture of the financial performance of the Company's operations than would a presentation that combined these two items. Gains on loans and securities, net are the result of activities in the Company’s operations, namely its balance sheet management segment. Gains on sales of investments, net relate to investments of the Company at the corporate level and are not related to the ongoing business of the Company’s operating subsidiaries. Gains on sales of investments, net are reported in the equity in income of investments and other line item on the consolidated statement of income. | |
These consolidated financial statements should be read in conjunction with the Annual Report on Form 10-K for the year ended December 31, 2013. | |
Use of Estimates—The consolidated financial statements were prepared in accordance with GAAP, which requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes for the periods presented. Actual results could differ from management’s estimates. Certain significant accounting policies are critical because they are based on estimates and assumptions that require complex and subjective judgments by management. Changes in these estimates or assumptions could materially impact the Company’s financial condition and results of operations. Material estimates in which management believes changes could reasonably occur include: allowance for loan losses; valuation of goodwill and other intangible assets; estimates of effective tax rates, deferred taxes and valuation allowance; classification and valuation of certain investments; accounting for derivative instruments; and fair value measurements. | |
Financial Statement Descriptions and Related Accounting Policies | |
Margin Receivables—The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, where the Company is permitted to sell or re-pledge the securities, was approximately $10.3 billion and $9.1 billion at March 31, 2014 and December 31, 2013, respectively. Of this amount, $2.6 billion and $1.9 billion had been pledged or sold in connection with securities loans, bank borrowings and deposits with clearing organizations as of March 31, 2014 and December 31, 2013, respectively. | |
Loans Held-for-Sale—These loans are carried at the lower of cost or estimated fair value, as determined on an aggregate basis, based on the agreed upon purchase price with the third party. Net unrealized gains or losses are recognized in a valuation allowance by charges to income. | |
Nonperforming Loans—The Company classifies loans as nonperforming when they are no longer accruing interest, which includes loans that are 90 days and greater past due, TDRs that are on nonaccrual status for all classes of loans and certain junior liens that have a delinquent senior lien. Interest previously accrued, but not collected, is reversed against current income when a loan is placed on nonaccrual status. Interest payments received on nonperforming loans are recognized on a cash basis in operating interest income until it is doubtful that full payment will be collected, at which point payments are applied to principal. The recognition of deferred fees or costs on originated loans and premiums or discounts on purchased loans in operating interest income is discontinued for nonperforming loans. Nonperforming loans, excluding TDRs and certain junior liens that have a delinquent senior lien, return to accrual status when the loan becomes less than 90 days past due. Loans modified as TDRs return to accrual status after six consecutive payments have been made in accordance with the modified terms. All bankruptcy loans remain on nonaccrual status regardless of the payment history. | |
Loan losses are recognized when, based on management's estimates, it is probable that a loss has been incurred. The Company’s charge-off policy for both one- to four-family and home equity loans is to assess the value of the property when the loan has been delinquent for 180 days or it is in bankruptcy, regardless of whether or not the property is in foreclosure, and charge-off the amount of the loan balance in excess of the estimated current value of the underlying property less estimated selling costs. TDR loan modifications are charged-off when certain characteristics of the loan, including CLTV, borrower’s credit and type of modification, cast substantial doubt on the borrower’s ability to repay the loan. Closed-end consumer loans are charged-off when the loan has been delinquent for 120 days or when it is determined that collection is not probable. | |
Real Estate Owned and Repossessed Assets—Real estate owned and repossessed assets are included in the other assets line item in the consolidated balance sheet. Real estate owned represents real estate acquired through foreclosure and also includes those properties acquired through a deed in lieu of foreclosure or similar legal agreement. Both real estate owned and the repossessed assets are carried at the lower of carrying value or fair value, less estimated selling costs. | |
New Accounting and Disclosure Guidance—Below is the new accounting and disclosure guidance that relates to activities in which the Company is engaged. | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |
In July 2013, the FASB amended the presentation guidance on unrecognized tax benefits. The amended guidance requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except under certain circumstances. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The unrecognized tax benefit should also be presented in the financial statements as a liability if the tax law of the applicable jurisdiction does not require the Company to use, and the Company does not intend to use, the deferred tax asset to settle any additional income taxes. The amended presentation guidance became effective for annual and interim periods beginning on January 1, 2014 for the Company and was applied prospectively to unrecognized tax benefits existing at that date. The adoption of the amended presentation guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. | |
Accounting for Investments in Qualified Affordable Housing Projects | |
In January 2014, the FASB amended the accounting guidance for investments in qualified affordable housing projects. The amended accounting guidance permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the Company would amortize the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the consolidated statement of income (loss) as a component of income tax expense (benefit). The amended guidance will be effective for annual and interim periods beginning on January 1, 2015 for the Company and must be applied retrospectively. Early adoption is permitted. While the Company is currently evaluating the impact of the new accounting guidance, the adoption is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. | |
Reclassification of Residential Real Estate Collateralized Mortgage Loans upon Foreclosure | |
In January 2014, the FASB amended the accounting and disclosure guidance on reclassifications of residential real estate collateralized mortgage loans upon foreclosure. The amended guidance clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amended disclosure guidance requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure. As early adoption was permitted, the Company early adopted the amended guidance as of January 1, 2014. The adoption of the amended accounting guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. | |
Presentation and Disclosure of Discontinued Operations | |
In April 2014, the FASB amended the presentation and disclosure guidance on disposal transactions. The amended guidance raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The amended guidance will be effective for all disposals or classifications as held for sale that occur in annual and interim periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The adoption is not expected to have a material impact on the Company’s current financial condition, results of operations or cash flows; however, it may impact the reporting of future disposals if and when they occur. |
Disposition
Disposition | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||
DISPOSITION | ' | ||||
On February 10, 2014, the Company completed the sale of its market making business, G1 Execution Services, LLC, to an affiliate of Susquehanna for $76 million. The sale resulted in a gain of $4 million which was recorded in the facility restructuring and other exit activities line item on the consolidated statement of income. The table below summarizes the carrying amounts of the major classes of assets and liabilities of the market making business at December 31, 2013 (dollars in millions): | |||||
December 31, 2013(1) | |||||
Assets: | |||||
Cash and equivalents | $ | 11 | |||
Trading securities | 105 | ||||
Property and equipment, net | 2 | ||||
Other intangibles, net | 21 | ||||
Other assets | 38 | ||||
Total assets | $ | 177 | |||
Liabilities: | |||||
Other liabilities | $ | 107 | |||
Total liabilities | $ | 107 | |||
(1)Assets and liabilities as of December 31, 2013 were classified as held-for-sale and reflected in the other assets and other liabilities line items on the consolidated balance sheet respectively. |
Operating_Interest_Income_and_
Operating Interest Income and Operating Interest Expense | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Operating Interest Income and Operating Interest Expense Disclosure [Abstract] | ' | |||||||
OPERATING INTEREST INCOME AND OPERATING INTEREST EXPENSE | ' | |||||||
OPERATING INTEREST INCOME AND OPERATING INTEREST EXPENSE | ||||||||
The following table shows the components of operating interest income and operating interest expense (dollars in millions): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Operating interest income: | ||||||||
Loans | $ | 84 | $ | 107 | ||||
Available-for-sale securities | 79 | 64 | ||||||
Held-to-maturity securities | 77 | 58 | ||||||
Margin receivables | 62 | 54 | ||||||
Securities borrowed and other | 20 | 17 | ||||||
Total operating interest income | 322 | 300 | ||||||
Operating interest expense: | ||||||||
Securities sold under agreements to repurchase | (35 | ) | (37 | ) | ||||
FHLB advances and other borrowings | (17 | ) | (17 | ) | ||||
Deposits | (2 | ) | (3 | ) | ||||
Customer payables and other | (2 | ) | (2 | ) | ||||
Total operating interest expense | (56 | ) | (59 | ) | ||||
Net operating interest income | $ | 266 | $ | 241 | ||||
Fair_Value_Disclosures
Fair Value Disclosures | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
FAIR VALUE DISCLOSURES | ' | |||||||||||||||||||
FAIR VALUE DISCLOSURES | ||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company may use various valuation approaches, including market, income and/or cost approaches. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is a market-based measure considered from the perspective of a market participant. Accordingly, even when market assumptions are not readily available, the Company’s own assumptions reflect those that market participants would use in pricing the asset or liability at the measurement date. The fair value measurement accounting guidance describes the following three levels used to classify fair value measurements: | ||||||||||||||||||||
• | Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by the Company. | |||||||||||||||||||
• | Level 2—Quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | |||||||||||||||||||
• | Level 3—Unobservable inputs that are significant to the fair value of the assets or liabilities. | |||||||||||||||||||
The availability of observable inputs can vary and in certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to a fair value measurement requires judgment and consideration of factors specific to the asset or liability. | ||||||||||||||||||||
Recurring Fair Value Measurement Techniques | ||||||||||||||||||||
U.S. Treasury Securities and Agency Debentures | ||||||||||||||||||||
The fair value measurements of U.S. Treasury securities were classified as Level 1 of the fair value hierarchy as they were based on quoted market prices in active markets. The fair value measurements of agency debentures were classified as Level 2 of the fair value hierarchy as they were based on quoted market prices observable in the marketplace. | ||||||||||||||||||||
Residential Mortgage-backed Securities | ||||||||||||||||||||
The Company’s residential mortgage-backed securities portfolio primarily comprised agency mortgage-backed securities and CMOs. Agency mortgage-backed securities and CMOs are guaranteed by U.S. government sponsored and federal agencies. The weighted average coupon rates for the residential mortgage-backed securities at March 31, 2014 are shown in the following table: | ||||||||||||||||||||
Weighted Average | ||||||||||||||||||||
Coupon Rate | ||||||||||||||||||||
Agency mortgage-backed securities | 3.08 | % | ||||||||||||||||||
Agency CMOs | 3.16 | % | ||||||||||||||||||
The fair value of agency mortgage-backed securities was determined using a market approach with quoted market prices, recent market transactions and spread data for similar instruments. The fair value of agency CMOs was determined using market and income approaches with the Company’s own trading activities for identical or similar instruments. Agency mortgage-backed securities and CMOs were categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||||
Other Debt Securities | ||||||||||||||||||||
The fair value measurements of agency debt securities were determined using market and income approaches along with the Company’s own trading activities for identical or similar instruments and were categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||||
The Company’s municipal bonds are revenue bonds issued by state and other local government agencies. The valuation of corporate bonds is impacted by the credit worthiness of the corporate issuer. All of the Company’s municipal bonds and corporate bonds were rated investment grade at March 31, 2014. These securities were valued using a market approach with pricing service valuations corroborated by recent market transactions for identical or similar bonds. Municipal bonds and corporate bonds were categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||||
Derivative Instruments | ||||||||||||||||||||
Interest rate swap and option contracts were valued with an income approach using pricing models that are commonly used by the financial services industry. The market observable inputs used in the pricing models include the swap curve, the volatility surface, and prime or overnight indexed swap basis from a financial data provider. The Company does not consider these models to involve significant judgment on the part of management, and the Company corroborated the fair value measurements with counterparty valuations. The Company’s derivative instruments were categorized in Level 2 of the fair value hierarchy. The consideration of credit risk, the Company’s or the counterparty’s, did not result in an adjustment to the valuation of its derivative instruments in the periods presented. | ||||||||||||||||||||
Securities Owned and Securities Sold, Not Yet Purchased | ||||||||||||||||||||
Securities transactions entered into by broker-dealer subsidiaries were included in trading securities as held-for-sale assets within other assets and securities sold, not yet purchased as held-for-sale liabilities in the Company’s fair value disclosures at December 31, 2013. The Company’s definition of actively traded is based on average daily volume and other market trading statistics. The majority of the Company's securities owned and securities sold, not yet purchased were categorized in Level 1 of the fair value hierarchy. The fair value of these securities was determined using listed or quoted market prices. The Company did not hold any of these securities at March 31, 2014. | ||||||||||||||||||||
Nonrecurring Fair Value Measurement Techniques | ||||||||||||||||||||
Certain other assets are recorded at fair value on a nonrecurring basis: 1) one- to four-family and home equity loans in which the amount of the loan balance in excess of the estimated current value of the underlying property less estimated selling costs has been charged-off; and 2) real estate owned that is carried at the lower of the property’s carrying value or fair value less estimated selling costs. | ||||||||||||||||||||
The Company evaluates and reviews assets that have been subject to fair value measurement requirements on a quarterly basis in accordance with policies and procedures that were designed to be in compliance with guidance from the Company’s regulators. These policies and procedures govern the frequency of the review, the use of acceptable valuation methods, and the consideration of estimated selling costs. | ||||||||||||||||||||
Loans Receivable and Real Estate Owned | ||||||||||||||||||||
Loans that have been delinquent for 180 days or that are in bankruptcy are charged-off based on the estimated current value of the underlying property less estimated selling costs. Property valuations for these one- to four-family and home equity loans are based on the most recent "as is" property valuation data available, which may include appraisals, broker price opinions, automated valuation models or updated values using home price indices. Subsequent to the recording of an initial fair value measurement, these loans continue to be measured at fair value on a nonrecurring basis, utilizing the estimated value of the underlying property less estimated selling costs. These property valuations are updated on a monthly, quarterly or semi-annual basis depending on the type of valuation initially used. If the value of the underlying property has declined, an additional charge-off is recorded. If the value of the underlying property has increased, previously charged-off amounts are not reversed. If the valuation data obtained is significantly different from the valuation previously received, the Company orders additional property valuation data to corroborate or update the valuation. | ||||||||||||||||||||
Property valuations for real estate owned are based on the lowest value of the most recent property valuation data available, which may include appraisals, listing prices or approved offer prices. Nonrecurring fair value measurements on one- to four-family and home equity loans and real estate owned were classified as Level 3 of the fair value hierarchy as the majority of the valuations included Level 3 inputs that were significant to the fair value. | ||||||||||||||||||||
The following table presents additional information about significant unobservable inputs used in the valuation of assets measured at fair value on a nonrecurring basis that were categorized in Level 3 of the fair value hierarchy at March 31, 2014: | ||||||||||||||||||||
Unobservable Inputs | Average | Range | ||||||||||||||||||
One- to four-family | Appraised value | $ | 334,900 | $19,000-$1,200,000 | ||||||||||||||||
Home equity | Appraised value | $ | 289,600 | $7,000-$1,005,800 | ||||||||||||||||
Real estate owned | Appraised value | $ | 344,600 | $18,300-$900,000 | ||||||||||||||||
Goodwill | ||||||||||||||||||||
At the end of the second quarter of 2013, the Company decided to exit the market making business, and as a result evaluated the total goodwill allocated to the market making reporting unit for impairment. The Company valued the market making business by using a combination of expected present value of future cash flows of the business, a form of the income approach, and prices of comparable businesses, a form of the market approach, with significant unobservable inputs. The Company valued the market making reporting unit using the expected sale structure of the market making business. As a result of the evaluation, it was determined that the entire carrying amount of goodwill allocated to the market making reporting unit was impaired, and the Company recognized $142 million impairment of goodwill during the year ended December 31, 2013. | ||||||||||||||||||||
Recurring and Nonrecurring Fair Value Measurements | ||||||||||||||||||||
Assets and liabilities measured at fair value at March 31, 2014 and December 31, 2013 are summarized in the following tables (dollars in millions): | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Fair Value | ||||||||||||||||||||
March 31, 2014: | ||||||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | — | $ | 11,423 | $ | — | $ | 11,423 | ||||||||||||
Investment securities: | ||||||||||||||||||||
Agency debentures | — | 493 | — | 493 | ||||||||||||||||
Agency debt securities | — | 805 | — | 805 | ||||||||||||||||
Municipal bonds | — | 41 | — | 41 | ||||||||||||||||
Corporate bonds | — | 4 | — | 4 | ||||||||||||||||
Total investment securities | — | 1,343 | — | 1,343 | ||||||||||||||||
Total available-for-sale securities | — | 12,766 | — | 12,766 | ||||||||||||||||
Other assets: | ||||||||||||||||||||
Derivative assets(1) | — | 66 | — | 66 | ||||||||||||||||
Deposits with clearing organizations(2) | 85 | — | — | 85 | ||||||||||||||||
Total other assets measured at fair value on a recurring basis | 85 | 66 | — | 151 | ||||||||||||||||
Total assets measured at fair value on a recurring basis(3) | $ | 85 | $ | 12,832 | $ | — | $ | 12,917 | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivative liabilities(1) | $ | — | $ | 144 | $ | — | $ | 144 | ||||||||||||
Total liabilities measured at fair value on a recurring basis(3) | $ | — | $ | 144 | $ | — | $ | 144 | ||||||||||||
Nonrecurring fair value measurements: | ||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||
One- to four-family | $ | — | $ | — | $ | 33 | $ | 33 | ||||||||||||
Home equity | — | — | 12 | 12 | ||||||||||||||||
Total loans receivable | — | — | 45 | 45 | ||||||||||||||||
Real estate owned | — | — | 29 | 29 | ||||||||||||||||
Total assets measured at fair value on a nonrecurring basis(4) | $ | — | $ | — | $ | 74 | $ | 74 | ||||||||||||
-1 | All derivative assets and liabilities were interest rate contracts at March 31, 2014. Information related to derivative instruments is detailed in Note 8—Accounting for Derivative Instruments and Hedging Activities. | |||||||||||||||||||
-2 | Represents U.S. Treasury securities held by a broker-dealer subsidiary. | |||||||||||||||||||
-3 | Assets and liabilities measured at fair value on a recurring basis represented 28% and less than 1% of the Company’s total assets and total liabilities, respectively, at March 31, 2014. | |||||||||||||||||||
-4 | Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at March 31, 2014, and for which a fair value measurement was recorded during the period. | |||||||||||||||||||
Level 1 | Level 2 | Level 3(1) | Total | |||||||||||||||||
Fair Value | ||||||||||||||||||||
December 31, 2013: | ||||||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | — | $ | 12,236 | $ | — | $ | 12,236 | ||||||||||||
Non-agency CMOs | — | — | 14 | 14 | ||||||||||||||||
Total residential mortgage-backed securities | — | 12,236 | 14 | 12,250 | ||||||||||||||||
Investment securities: | ||||||||||||||||||||
Agency debentures | — | 466 | — | 466 | ||||||||||||||||
Agency debt securities | — | 831 | — | 831 | ||||||||||||||||
Municipal bonds | — | 40 | — | 40 | ||||||||||||||||
Corporate bonds | — | 5 | — | 5 | ||||||||||||||||
Total investment securities | — | 1,342 | — | 1,342 | ||||||||||||||||
Total available-for-sale securities | — | 13,578 | 14 | 13,592 | ||||||||||||||||
Other assets: | ||||||||||||||||||||
Derivative assets(2) | — | 107 | — | 107 | ||||||||||||||||
Deposits with clearing organizations(3) | 53 | — | — | 53 | ||||||||||||||||
Held-for-sale assets—trading securities(4) | 104 | 1 | — | 105 | ||||||||||||||||
Total other assets measured at fair value on a recurring basis | 157 | 108 | — | 265 | ||||||||||||||||
Total assets measured at fair value on a recurring basis(5) | $ | 157 | $ | 13,686 | $ | 14 | $ | 13,857 | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivative liabilities(2) | $ | — | $ | 169 | $ | — | $ | 169 | ||||||||||||
Held-for-sale liabilities—securities sold, not yet purchased(4) | 94 | 1 | — | 95 | ||||||||||||||||
Total liabilities measured at fair value on a recurring basis(5) | $ | 94 | $ | 170 | $ | — | $ | 264 | ||||||||||||
Nonrecurring fair value measurements: | ||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||
One- to four-family | $ | — | $ | — | $ | 246 | $ | 246 | ||||||||||||
Home equity | — | — | 46 | 46 | ||||||||||||||||
Total loans receivable(6) | — | — | 292 | 292 | ||||||||||||||||
Real estate owned(6) | — | — | 47 | 47 | ||||||||||||||||
Total assets measured at fair value on a nonrecurring basis(7) | $ | — | $ | — | $ | 339 | $ | 339 | ||||||||||||
-1 | Instruments measured at fair value on a recurring basis categorized as Level 3 represented less than 1% of the Company's total assets and none of its total liabilities at December 31, 2013. | |||||||||||||||||||
-2 | All derivative assets and liabilities were interest rate contracts at December 31, 2013. Information related to derivative instruments is detailed in Note 8—Accounting for Derivative Instruments and Hedging Activities. | |||||||||||||||||||
-3 | Represents U.S. Treasury securities held by a broker-dealer subsidiary. | |||||||||||||||||||
-4 | Assets and liabilities of the market making business were reclassified as held-for-sale and are presented in the other assets and other liabilities line items, respectively, on the consolidated balance sheet at December 31, 2013. Information related to the classification is detailed in Note 2—Disposition. | |||||||||||||||||||
-5 | Assets and liabilities measured at fair value on a recurring basis represented 30% and 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2013. | |||||||||||||||||||
-6 | Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2013, and for which a fair value measurement was recorded during the period. | |||||||||||||||||||
-7 | Goodwill allocated to the market making reporting unit with a carrying amount of $142 million was written down to zero during the year ended December 31, 2013 and categorized in Level 3 of the fair value hierarchy. | |||||||||||||||||||
The following table presents the gains and losses associated with the assets measured at fair value on a nonrecurring basis during the three months ended March 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
One- to four-family | $ | 5 | $ | 16 | ||||||||||||||||
Home equity | 12 | 19 | ||||||||||||||||||
Total losses on loans receivable measured at fair value | $ | 17 | $ | 35 | ||||||||||||||||
(Gains) losses on real estate owned measured at fair value | $ | (1 | ) | $ | 1 | |||||||||||||||
Transfers Between Levels 1 and 2 | ||||||||||||||||||||
For assets and liabilities measured at fair value on a recurring basis, the Company’s transfers between levels of the fair value hierarchy are deemed to have occurred at the beginning of the reporting period on a quarterly basis. The Company had no material transfers between Level 1 and 2 during the three months ended March 31, 2014 and 2013. | ||||||||||||||||||||
Level 3 Rollforward for Recurring Fair Value Measurements | ||||||||||||||||||||
Level 3 assets and liabilities include instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. While the Company’s fair value estimates of Level 3 instruments utilized observable inputs where available, the valuation included significant management judgment in determining the relevance and reliability of market information considered. | ||||||||||||||||||||
The following tables present additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||||
Non-agency CMOs | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Beginning of period | $ | 14 | $ | 49 | ||||||||||||||||
Gains (losses) recognized in earnings(1) | 6 | (1 | ) | |||||||||||||||||
Net gains recognized in other comprehensive income(2) | 3 | 2 | ||||||||||||||||||
Sales | (23 | ) | (35 | ) | ||||||||||||||||
Settlements | — | (1 | ) | |||||||||||||||||
End of period | $ | — | $ | 14 | ||||||||||||||||
-1 | Gains and losses recognized in earnings are reported in the gains on loans and securities, net and net impairment line items on the consolidated statement of income. | |||||||||||||||||||
-2 | Net gains recognized in other comprehensive income are reported in the net change from available-for-sale securities line item. | |||||||||||||||||||
Fair Value of Financial Instruments Not Carried at Fair Value | ||||||||||||||||||||
The following table summarizes the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not carried at fair value on the consolidated balance sheet at March 31, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Value | Fair Value | |||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and equivalents | $ | 1,585 | $ | 1,585 | $ | — | $ | — | $ | 1,585 | ||||||||||
Cash required to be segregated under federal or other regulations | $ | 981 | $ | 981 | $ | — | $ | — | $ | 981 | ||||||||||
Held-to-maturity securities: | ||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 9,048 | $ | — | $ | 9,057 | $ | — | $ | 9,057 | ||||||||||
Agency debentures | 163 | — | 167 | — | 167 | |||||||||||||||
Agency debt securities | 2,037 | — | 2,030 | — | 2,030 | |||||||||||||||
Total held-to-maturity securities | $ | 11,248 | $ | — | $ | 11,254 | $ | — | $ | 11,254 | ||||||||||
Margin receivables | $ | 7,346 | $ | — | $ | 7,346 | $ | — | $ | 7,346 | ||||||||||
Loans held-for-sale | $ | 795 | $ | — | $ | 802 | $ | — | $ | 802 | ||||||||||
Loans receivable, net: | ||||||||||||||||||||
One- to four-family | $ | 3,442 | $ | — | $ | — | $ | 2,975 | $ | 2,975 | ||||||||||
Home equity | 2,994 | — | — | 2,726 | 2,726 | |||||||||||||||
Consumer and other | 546 | — | — | 557 | 557 | |||||||||||||||
Total loans receivable, net(1) | $ | 6,982 | $ | — | $ | — | $ | 6,258 | $ | 6,258 | ||||||||||
Investment in FHLB stock | $ | 56 | $ | — | $ | — | $ | 56 | $ | 56 | ||||||||||
Deposits paid for securities borrowed | $ | 487 | $ | — | $ | 487 | $ | — | $ | 487 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits | $ | 25,749 | $ | — | $ | 25,749 | $ | — | $ | 25,749 | ||||||||||
Securities sold under agreements to repurchase | $ | 4,345 | $ | — | $ | 4,360 | $ | — | $ | 4,360 | ||||||||||
Customer payables | $ | 6,260 | $ | — | $ | 6,260 | $ | — | $ | 6,260 | ||||||||||
FHLB advances and other borrowings | $ | 1,287 | $ | — | $ | 927 | $ | 248 | $ | 1,175 | ||||||||||
Corporate debt | $ | 1,769 | $ | — | $ | 1,965 | $ | — | $ | 1,965 | ||||||||||
Deposits received for securities loaned | $ | 1,608 | $ | — | $ | 1,608 | $ | — | $ | 1,608 | ||||||||||
-1 | The carrying value of loans receivable, net includes the allowance for loan losses of $403 million and loans that are valued at fair value on a nonrecurring basis at March 31, 2014. | |||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Value | Fair Value | |||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and equivalents | $ | 1,838 | $ | 1,838 | $ | — | $ | — | $ | 1,838 | ||||||||||
Cash required to be segregated under federal or other regulations | $ | 1,066 | $ | 1,066 | $ | — | $ | — | $ | 1,066 | ||||||||||
Held-to-maturity securities: | ||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 8,359 | $ | — | $ | 8,293 | $ | — | $ | 8,293 | ||||||||||
Agency debentures | 164 | — | 168 | — | 168 | |||||||||||||||
Agency debt securities | 1,658 | — | 1,631 | — | 1,631 | |||||||||||||||
Total held-to-maturity securities | $ | 10,181 | $ | — | $ | 10,092 | $ | — | $ | 10,092 | ||||||||||
Margin receivables | $ | 6,353 | $ | — | $ | 6,353 | $ | — | $ | 6,353 | ||||||||||
Loans receivable, net: | ||||||||||||||||||||
One- to four-family | $ | 4,392 | $ | — | $ | — | $ | 3,790 | $ | 3,790 | ||||||||||
Home equity | 3,148 | — | — | 2,822 | 2,822 | |||||||||||||||
Consumer and other | 583 | — | — | 596 | 596 | |||||||||||||||
Total loans receivable, net(1) | $ | 8,123 | $ | — | $ | — | $ | 7,208 | $ | 7,208 | ||||||||||
Investment in FHLB stock | $ | 61 | $ | — | $ | — | $ | 61 | $ | 61 | ||||||||||
Deposits paid for securities borrowed | $ | 536 | $ | — | $ | 536 | $ | — | $ | 536 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits | $ | 25,971 | $ | — | $ | 25,971 | $ | — | $ | 25,971 | ||||||||||
Securities sold under agreements to repurchase | $ | 4,543 | $ | — | $ | 4,571 | $ | — | $ | 4,571 | ||||||||||
Customer payables | $ | 6,310 | $ | — | $ | 6,310 | $ | — | $ | 6,310 | ||||||||||
FHLB advances and other borrowings | $ | 1,279 | $ | — | $ | 924 | $ | 225 | $ | 1,149 | ||||||||||
Corporate debt | $ | 1,768 | $ | — | $ | 1,951 | $ | — | $ | 1,951 | ||||||||||
Deposits received for securities loaned | $ | 1,050 | $ | — | $ | 1,050 | $ | — | $ | 1,050 | ||||||||||
-1 | The carrying value of loans receivable, net includes the allowance for loan losses of $453 million and loans that are valued at fair value on a nonrecurring basis at December 31, 2013. | |||||||||||||||||||
The fair value measurement techniques for financial instruments not carried at fair value on the consolidated balance sheet at March 31, 2014 and December 31, 2013 are summarized as follows: | ||||||||||||||||||||
Cash and equivalents, cash required to be segregated under federal or other regulations, margin receivables, deposits paid for securities borrowed, customer payables and deposits received for securities loaned—Fair value is estimated to be carrying value. | ||||||||||||||||||||
Held-to-maturity securities—The held-to-maturity securities portfolio included agency mortgage-backed securities and CMOs, agency debentures, and agency debt securities. The fair value of agency mortgage-backed securities is determined using market and income approaches with quoted market prices, recent market transactions and spread data for similar instruments. The fair value of agency CMOs and agency debt securities is determined using market and income approaches with the Company’s own trading activities for identical or similar instruments. The fair value of agency debentures is based on quoted market prices that were derived from assumptions observable in the marketplace. | ||||||||||||||||||||
Loans held-for-sale—Fair value is based on the agreed upon purchase price in the sale of the one- to four-family loans modified as TDRs. The Company corroborated pricing with third-party pricing services and dealers as additional evidence to support the valuation. | ||||||||||||||||||||
Loans receivable, net—Fair value is estimated using a discounted cash flow model. Loans are differentiated based on their individual portfolio characteristics, such as product classification, loan category, pricing features and remaining maturity. Assumptions for expected losses, prepayments and discount rates are adjusted to reflect the individual characteristics of the loans, such as credit risk, coupon, term, and payment characteristics, as well as the secondary market conditions for these types of loans. There was limited or no observable market data for the home equity and one- to four-family loan portfolios, which indicates that the market for these types of loans is considered to be inactive. Given the limited market data, these fair value measurements cannot be determined with precision and changes in the underlying assumptions used, including discount rates, could significantly affect the results of current or future fair value estimates. In addition, the amount that would be realized in a forced liquidation, an actual sale or immediate settlement could be significantly lower than both the carrying value and the estimated fair value of the portfolio. | ||||||||||||||||||||
Investment in FHLB stock—FHLB stock is carried at cost, which is considered to be a reasonable estimate of fair value. | ||||||||||||||||||||
Deposits—Fair value is the amount payable on demand at the reporting date for sweep deposits, complete savings deposits, other money market and savings deposits and checking deposits. For certificates of deposit and brokered certificates of deposit, fair value is estimated by discounting future cash flows using discount factors derived from current observable rates implied for other similar instruments with similar remaining maturities. | ||||||||||||||||||||
Securities sold under agreements to repurchase—Fair value is determined by discounting future cash flows using discount factors derived from current observable rates implied for other similar instruments with similar remaining maturities. | ||||||||||||||||||||
FHLB advances and other borrowings—Fair value for FHLB advances is estimated by discounting future cash flows using discount factors derived from current observable rates implied for similar instruments with similar remaining maturities. For subordinated debentures, fair value is estimated by discounting future cash flows at the rate implied by dealer pricing quotes. For margin collateral, overnight and other short-term borrowings, fair value approximates carrying value. | ||||||||||||||||||||
Corporate debt—Fair value is estimated using dealer pricing quotes. The fair value of the non-interest-bearing convertible debentures is directly correlated to the intrinsic value of the Company’s underlying stock. As the price of the Company’s stock increases relative to the conversion price, the fair value of the convertible debentures increases. |
Offsetting_Assets_and_Liabilit
Offsetting Assets and Liabilities | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
Offsetting Assets and Liabilities [Abstract] | ' | ||||||||||||||||||||||||||
Offsetting Assets and Liabilities [Text Block] | ' | ||||||||||||||||||||||||||
OFFSETTING ASSETS AND LIABILITIES | |||||||||||||||||||||||||||
For financial statement purposes, the Company does not offset derivative instruments, repurchase agreements or securities borrowing and securities lending transactions. The Company’s derivative instruments, repurchase agreements and securities borrowing and securities lending transactions are generally transacted under master agreements that are widely used by counterparties and that may allow for net settlements of payments in the normal course, as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the two parties to the transaction. The following table presents information about these transactions to enable the users of the Company’s financial statements to evaluate the potential effect of rights of setoff between these recognized assets and recognized liabilities at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheet | |||||||||||||||||||||||||||
Gross Amounts of Recognized Assets and Liabilities | Gross Amounts Offset in the Consolidated Balance Sheet | Net Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Collateral Received or Pledged (Including Cash) | Net Amount | ||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Deposits paid for securities borrowed (1)(5) | $ | 487 | $ | — | $ | 487 | $ | (306 | ) | $ | (171 | ) | $ | 10 | |||||||||||||
Derivative assets (1)(3) | 62 | — | 62 | (35 | ) | (13 | ) | 14 | |||||||||||||||||||
Total | $ | 549 | $ | — | $ | 549 | $ | (341 | ) | $ | (184 | ) | $ | 24 | |||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Repurchase agreements (4) | $ | 4,345 | $ | — | $ | 4,345 | $ | — | $ | (4,342 | ) | $ | 3 | ||||||||||||||
Deposits received for securities loaned (2)(6) | 1,608 | — | 1,608 | (306 | ) | (1,195 | ) | 107 | |||||||||||||||||||
Derivative liabilities (2)(3) | 139 | — | 139 | (35 | ) | (104 | ) | — | |||||||||||||||||||
Total | $ | 6,092 | $ | — | $ | 6,092 | $ | (341 | ) | $ | (5,641 | ) | $ | 110 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Deposits paid for securities borrowed (1)(5) | $ | 536 | $ | — | $ | 536 | $ | (247 | ) | $ | (282 | ) | $ | 7 | |||||||||||||
Derivative assets (1)(3) | 92 | — | 92 | (48 | ) | (12 | ) | 32 | |||||||||||||||||||
Total | $ | 628 | $ | — | $ | 628 | $ | (295 | ) | $ | (294 | ) | $ | 39 | |||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Repurchase agreements (4) | $ | 4,543 | $ | — | $ | 4,543 | $ | — | $ | (4,537 | ) | $ | 6 | ||||||||||||||
Deposits received for securities loaned (2)(6) | 1,050 | — | 1,050 | (247 | ) | (740 | ) | 63 | |||||||||||||||||||
Derivative liabilities (2)(3) | 168 | — | 168 | (48 | ) | (120 | ) | — | |||||||||||||||||||
Total | $ | 5,761 | $ | — | $ | 5,761 | $ | (295 | ) | $ | (5,397 | ) | $ | 69 | |||||||||||||
-1 | Net amounts presented in the consolidated balance sheet are reflected in the other assets line item. | ||||||||||||||||||||||||||
-2 | Net amounts presented in the consolidated balance sheet are reflected in the other liabilities line item. | ||||||||||||||||||||||||||
-3 | Excludes net accrued interest payable of $17 million and $19 million at March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||
-4 | The Company pledges available-for-sale and held-to-maturity securities as collateral for amounts due on repurchase agreements and derivative liabilities. The collateral pledged included available-for-sale securities at fair value and held-to-maturity securities at amortized cost for both March 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||||
-5 | Included in the gross amounts of deposits paid for securities borrowed is $311 million and $415 million at March 31, 2014 and December 31, 2013, 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 original counterparties to the Company’s master securities loan agreements. | ||||||||||||||||||||||||||
-6 | Included in the gross amounts of deposits received for securities loaned is $1.0 billion and $682 million at March 31, 2014 and December 31, 2013, 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 original counterparties to the Company’s master securities loan agreements. | ||||||||||||||||||||||||||
Effective June 10, 2013, certain types of derivatives that the Company trades are subject to the Dodd-Frank Act clearing mandate and as a result, are subject to derivatives clearing agreements ("cleared derivatives contracts"). These cleared derivatives contracts enable clearing by a derivatives clearing organization through a clearing member. Under the contracts, the clearing member typically has a one-way right to offset all contracts in the event of the Company’s default or bankruptcy. As such, the cleared derivatives contracts are not bilateral master netting agreements and do not allow for offsetting. At March 31, 2014 and December 31, 2013, the Company had $4 million and $15 million, respectively, in derivative assets of cleared derivatives contracts and $5 million and $1 million, respectively, in derivative liabilities of cleared derivatives contracts. |
AvailableforSale_and_HeldtoMat
Available-for-Sale and Held-to-Maturity Securities | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
AVAILABLE-FOR-SALE AND HELD-TO-MATURITY SECURITIES | ' | |||||||||||||||||||||||
AVAILABLE-FOR-SALE AND HELD-TO-MATURITY SECURITIES | ||||||||||||||||||||||||
The amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31, 2014 and December 31, 2013 are shown in the following tables (dollars in millions): | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||||||
Cost | Unrealized / | Unrealized / | ||||||||||||||||||||||
Unrecognized | Unrecognized | |||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
March 31, 2014: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 11,584 | $ | 81 | $ | (242 | ) | $ | 11,423 | |||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debentures | 522 | 5 | (34 | ) | 493 | |||||||||||||||||||
Agency debt securities | 798 | 12 | (5 | ) | 805 | |||||||||||||||||||
Municipal bonds | 41 | 1 | (1 | ) | 41 | |||||||||||||||||||
Corporate bonds | 5 | — | (1 | ) | 4 | |||||||||||||||||||
Total investment securities | 1,366 | 18 | (41 | ) | 1,343 | |||||||||||||||||||
Total available-for-sale securities | $ | 12,950 | $ | 99 | $ | (283 | ) | $ | 12,766 | |||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 9,048 | $ | 119 | $ | (110 | ) | $ | 9,057 | |||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debentures | 163 | 4 | — | 167 | ||||||||||||||||||||
Agency debt securities | 2,037 | 22 | (29 | ) | 2,030 | |||||||||||||||||||
Total investment securities | 2,200 | 26 | (29 | ) | 2,197 | |||||||||||||||||||
Total held-to-maturity securities | $ | 11,248 | $ | 145 | $ | (139 | ) | $ | 11,254 | |||||||||||||||
December 31, 2013: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 12,505 | $ | 66 | $ | (335 | ) | $ | 12,236 | |||||||||||||||
Non-agency CMOs | 17 | 2 | (5 | ) | 14 | |||||||||||||||||||
Total residential mortgage-backed securities | 12,522 | 68 | (340 | ) | 12,250 | |||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debentures | 520 | — | (54 | ) | 466 | |||||||||||||||||||
Agency debt securities | 832 | 8 | (9 | ) | 831 | |||||||||||||||||||
Municipal bonds | 42 | — | (2 | ) | 40 | |||||||||||||||||||
Corporate bonds | 6 | — | (1 | ) | 5 | |||||||||||||||||||
Total investment securities | 1,400 | 8 | (66 | ) | 1,342 | |||||||||||||||||||
Total available-for-sale securities | $ | 13,922 | $ | 76 | $ | (406 | ) | $ | 13,592 | |||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 8,359 | $ | 99 | $ | (165 | ) | $ | 8,293 | |||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debentures | 164 | 4 | — | 168 | ||||||||||||||||||||
Agency debt securities | 1,658 | 13 | (40 | ) | 1,631 | |||||||||||||||||||
Total investment securities | 1,822 | 17 | (40 | ) | 1,799 | |||||||||||||||||||
Total held-to-maturity securities | $ | 10,181 | $ | 116 | $ | (205 | ) | $ | 10,092 | |||||||||||||||
Contractual Maturities | ||||||||||||||||||||||||
The contractual maturities of all available-for-sale and held-to-maturity debt securities at March 31, 2014 are shown below (dollars in millions): | ||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Due within one to five years | $ | 58 | $ | 58 | ||||||||||||||||||||
Due within five to ten years | 1,031 | 1,020 | ||||||||||||||||||||||
Due after ten years | 11,861 | 11,688 | ||||||||||||||||||||||
Total available-for-sale securities | $ | 12,950 | $ | 12,766 | ||||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Due within one to five years | $ | 964 | $ | 995 | ||||||||||||||||||||
Due within five to ten years | 2,589 | 2,624 | ||||||||||||||||||||||
Due after ten years | 7,695 | 7,635 | ||||||||||||||||||||||
Total held-to-maturity securities | $ | 11,248 | $ | 11,254 | ||||||||||||||||||||
The Company pledged $2.3 billion and $2.1 billion at March 31, 2014 and December 31, 2013, respectively, of available-for-sale securities and $2.9 billion and $3.4 billion at March 31, 2014 and December 31, 2013, respectively, of held-to-maturity securities as collateral for repurchase agreements, derivatives and other purposes. | ||||||||||||||||||||||||
Investments with Unrecognized or Unrealized Losses | ||||||||||||||||||||||||
The following tables show the fair value and unrealized or unrecognized losses on available-for-sale and held-to-maturity securities, aggregated by investment category, and the length of time that individual securities have been in a continuous unrealized or unrecognized loss position at March 31, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value | Unrealized / | Fair Value | Unrealized / | Fair Value | Unrealized / | |||||||||||||||||||
Unrecognized | Unrecognized | Unrecognized | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
March 31, 2014: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 3,559 | $ | (104 | ) | $ | 2,679 | $ | (138 | ) | $ | 6,238 | $ | (242 | ) | |||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debentures | 245 | (25 | ) | 78 | (9 | ) | 323 | (34 | ) | |||||||||||||||
Agency debt securities | 5 | — | 160 | (5 | ) | 165 | (5 | ) | ||||||||||||||||
Municipal bonds | 18 | (1 | ) | — | — | 18 | (1 | ) | ||||||||||||||||
Corporate bonds | — | — | 5 | (1 | ) | 5 | (1 | ) | ||||||||||||||||
Total temporarily impaired available-for-sale securities | $ | 3,827 | $ | (130 | ) | $ | 2,922 | $ | (153 | ) | $ | 6,749 | $ | (283 | ) | |||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 3,213 | $ | (56 | ) | $ | 1,512 | $ | (54 | ) | $ | 4,725 | $ | (110 | ) | |||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debt securities | 645 | (19 | ) | 310 | (10 | ) | 955 | (29 | ) | |||||||||||||||
Total temporarily impaired held-to-maturity securities | $ | 3,858 | $ | (75 | ) | $ | 1,822 | $ | (64 | ) | $ | 5,680 | $ | (139 | ) | |||||||||
December 31, 2013: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 6,422 | $ | (268 | ) | $ | 1,266 | $ | (67 | ) | $ | 7,688 | $ | (335 | ) | |||||||||
Non-agency CMOs | — | — | 11 | (5 | ) | 11 | (5 | ) | ||||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debentures | 466 | (54 | ) | — | — | 466 | (54 | ) | ||||||||||||||||
Agency debt securities | 384 | (9 | ) | — | — | 384 | (9 | ) | ||||||||||||||||
Municipal bonds | 27 | (2 | ) | — | — | 27 | (2 | ) | ||||||||||||||||
Corporate bonds | — | — | 5 | (1 | ) | 5 | (1 | ) | ||||||||||||||||
Total temporarily impaired available-for-sale securities | $ | 7,299 | $ | (333 | ) | $ | 1,282 | $ | (73 | ) | $ | 8,581 | $ | (406 | ) | |||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 3,607 | $ | (121 | ) | $ | 891 | $ | (44 | ) | $ | 4,498 | $ | (165 | ) | |||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debt securities | 1,153 | (40 | ) | — | — | 1,153 | (40 | ) | ||||||||||||||||
Total temporarily impaired held-to-maturity securities | $ | 4,760 | $ | (161 | ) | $ | 891 | $ | (44 | ) | $ | 5,651 | $ | (205 | ) | |||||||||
The Company does not believe that any individual unrealized loss in the available-for-sale or unrecognized loss in the held-to-maturity portfolio as of March 31, 2014 represents a credit loss. The credit loss component is the difference between the security’s amortized cost basis and the present value of its expected future cash flows, and is recognized in earnings. The noncredit loss component is the difference between the present value of its expected future cash flows and the fair value and is recognized through other comprehensive income. The Company assessed whether it intends to sell, or whether it is more likely than not that the Company will be required to sell a security before recovery of its amortized cost basis. For securities that are considered other-than-temporarily impaired and that the Company does not intend to sell as of the balance sheet date and will not be required to sell prior to recovery of its amortized cost basis, the Company determines the amount of the impairment that is related to credit and the amount due to all other factors. | ||||||||||||||||||||||||
The majority of the unrealized or unrecognized losses on mortgage-backed securities are attributable to changes in interest rates and a re-pricing of risk in the market. Agency mortgage-backed securities and CMOs, agency debentures and agency debt securities are guaranteed by U.S. government sponsored and federal agencies. Municipal bonds and corporate bonds are evaluated by reviewing the credit-worthiness of the issuer and general market conditions. The Company does not intend to sell the securities in an unrealized or unrecognized loss position as of the balance sheet date and it is not more likely than not that the Company will be required to sell the securities before the anticipated recovery of its remaining amortized cost of the securities in an unrealized or unrecognized loss position at March 31, 2014. | ||||||||||||||||||||||||
The following table presents a roll forward for the three months ended March 31, 2014 and 2013 of the credit loss component on debt securities held by the Company that had a noncredit loss recognized in other comprehensive income and had a credit loss recognized in earnings (dollars in millions): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Credit loss balance, beginning of period | $ | 166 | $ | 187 | ||||||||||||||||||||
Additions: | ||||||||||||||||||||||||
Subsequent credit impairment | — | 1 | ||||||||||||||||||||||
Securities sold | (14 | ) | (23 | ) | ||||||||||||||||||||
Credit loss balance, end of period (1) | $ | 152 | $ | 165 | ||||||||||||||||||||
-1 | The credit loss balance at March 31, 2014 and 2013 included $121 million and $114 million, respectively, of credit losses associated with debt securities that have been factored to zero, but the Company still holds legal title to these securities until maturity or until they are sold. | |||||||||||||||||||||||
Gains on Loans and Securities, Net | ||||||||||||||||||||||||
The detailed components of the gains on loans and securities, net line item on the consolidated statement of income for the three months ended March 31, 2014 and 2013 are as follows (dollars in millions): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Gains on available-for-sale securities | $ | 19 | $ | 24 | ||||||||||||||||||||
Losses on available-for-sale securities | — | (8 | ) | |||||||||||||||||||||
Hedge ineffectiveness | (4 | ) | — | |||||||||||||||||||||
Gains on loans and securities, net | $ | 15 | $ | 16 | ||||||||||||||||||||
During the first quarter of 2014, the Company sold $17 million in amortized cost of its available-for-sale non-agency CMOs for proceeds of approximately $23 million, which resulted in a pre-tax gain of $6 million. Similarly, during the first quarter 2013, the Company sold $231 million in amortized cost of its available-for-sale non-agency CMOs for proceeds of approximately $227 million, which resulted in a pre-tax net loss of $4 million. |
Loans_Receivable_Net
Loans Receivable, Net | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
LOANS RECEIVABLE, NET | ' | ||||||||||||||||||||||||||
LOANS RECEIVABLE, NET | |||||||||||||||||||||||||||
Loans receivable, net at March 31, 2014 and December 31, 2013 are summarized as follows (dollars in millions): | |||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||
One- to four-family | $ | 3,479 | $ | 4,475 | |||||||||||||||||||||||
Home equity | 3,304 | 3,454 | |||||||||||||||||||||||||
Consumer and other | 565 | 602 | |||||||||||||||||||||||||
Total loans receivable | 7,348 | 8,531 | |||||||||||||||||||||||||
Unamortized premiums, net | 37 | 45 | |||||||||||||||||||||||||
Allowance for loan losses | (403 | ) | (453 | ) | |||||||||||||||||||||||
Total loans receivable, net | $ | 6,982 | $ | 8,123 | |||||||||||||||||||||||
At the end of the first quarter in 2014, the Company decided to sell $0.8 billion of one-to four-family loans modified as TDRs which were transferred to held-for-sale at March 31, 2014. | |||||||||||||||||||||||||||
At March 31, 2014, the Company pledged $6.5 billion and $0.6 billion of loans as collateral to the FHLB and Federal Reserve Bank, respectively. At December 31, 2013, the Company pledged $6.8 billion and $0.6 billion of loans as collateral to the FHLB and Federal Reserve Bank, respectively. Loans that the Company pledges to the FHLB at March 31, 2014 include both held-for-investment and held-for-sale loans. Additionally, the Company’s entire loans receivable portfolio was serviced by other companies at March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||
The following table represents the breakdown of the total recorded investment in loans receivable and allowance for loan losses by loans that have been collectively evaluated for impairment and those that have been individually evaluated for impairment at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
Recorded Investment | Allowance for Loan | ||||||||||||||||||||||||||
Losses | |||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||
Loans collectively evaluated for impairment | $ | 6,832 | $ | 7,163 | $ | 328 | $ | 329 | |||||||||||||||||||
Loans individually evaluated for impairment (TDRs) | 553 | 1,413 | 75 | 124 | |||||||||||||||||||||||
Total | $ | 7,385 | $ | 8,576 | $ | 403 | $ | 453 | |||||||||||||||||||
Credit Quality and Concentrations of Credit Risk | |||||||||||||||||||||||||||
The Company tracks and reviews factors to predict and monitor credit risk in its mortgage loan portfolio on an ongoing basis. These factors include: loan type, estimated current LTV/CLTV ratios, delinquency history, documentation type, borrowers’ current credit scores, housing prices, loan vintage and geographic location of the property. In economic conditions in which housing prices generally appreciate, the Company believes that loan type, LTV/CLTV ratios, documentation type and credit scores are the key factors in determining future loan performance. In a housing market with declining home prices and less credit available for refinance, the Company believes the LTV/CLTV ratio becomes a more important factor in predicting and monitoring credit risk. The factors are updated on at least a quarterly basis. The Company tracks and reviews delinquency status to predict and monitor credit risk in the consumer and other loan portfolio on at least a quarterly basis. | |||||||||||||||||||||||||||
Credit Quality | |||||||||||||||||||||||||||
The following tables show the distribution of the Company’s mortgage loan portfolios by credit quality indicator at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
One- to Four-Family | Home Equity | ||||||||||||||||||||||||||
Current LTV/CLTV (1) | 31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||
<€% | $ | 1,711 | $ | 1,912 | $ | 1,122 | $ | 1,142 | |||||||||||||||||||
80%-100% | 1,014 | 1,365 | 829 | 866 | |||||||||||||||||||||||
100%-120% | 453 | 711 | 704 | 736 | |||||||||||||||||||||||
>120% | 301 | 487 | 649 | 710 | |||||||||||||||||||||||
Total mortgage loans receivable | $ | 3,479 | $ | 4,475 | $ | 3,304 | $ | 3,454 | |||||||||||||||||||
Average estimated current LTV/CLTV (2) | 84 | % | 90 | % | 97 | % | 98 | % | |||||||||||||||||||
Average LTV/CLTV at loan origination (3) | 71 | % | 72 | % | 80 | % | 80 | % | |||||||||||||||||||
-1 | Current CLTV calculations for home equity loans are based on the maximum available line for home equity lines of credit and outstanding principal balance for home equity installment loans. Current property values are updated on a quarterly basis using the most recent property value data available to the Company. For properties in which the Company did not have an updated valuation, home price indices were utilized to estimate the current property value. | ||||||||||||||||||||||||||
-2 | The average estimated current LTV/CLTV ratio reflects the outstanding balance at the balance sheet date and the maximum available line for home equity lines of credit, divided by the estimated current value of the underlying property. | ||||||||||||||||||||||||||
-3 | Average LTV/CLTV at loan origination calculations are based on LTV/CLTV at time of purchase for one- to four-family purchased loans and undrawn balances for home equity loans. | ||||||||||||||||||||||||||
One- to Four-Family | Home Equity | ||||||||||||||||||||||||||
Documentation Type | 31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||
Full documentation | $ | 1,549 | $ | 1,847 | $ | 1,693 | $ | 1,769 | |||||||||||||||||||
Low/no documentation | 1,930 | 2,628 | 1,611 | 1,685 | |||||||||||||||||||||||
Total mortgage loans receivable | $ | 3,479 | $ | 4,475 | $ | 3,304 | $ | 3,454 | |||||||||||||||||||
One- to Four-Family | Home Equity | ||||||||||||||||||||||||||
Current FICO (1) | 31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||
>r0 | $ | 2,006 | $ | 2,252 | $ | 1,740 | $ | 1,811 | |||||||||||||||||||
719 - 700 | 326 | 436 | 327 | 343 | |||||||||||||||||||||||
699 - 680 | 280 | 366 | 278 | 293 | |||||||||||||||||||||||
679 - 660 | 212 | 296 | 220 | 245 | |||||||||||||||||||||||
659 - 620 | 266 | 404 | 298 | 310 | |||||||||||||||||||||||
<620 | 389 | 721 | 441 | 452 | |||||||||||||||||||||||
Total mortgage loans receivable | $ | 3,479 | $ | 4,475 | $ | 3,304 | $ | 3,454 | |||||||||||||||||||
-1 | FICO scores are updated on a quarterly basis; however, at March 31, 2014 and December 31, 2013, there were some loans for which the updated FICO scores were not available. The current FICO distribution at March 31, 2014 included original FICO scores for approximately $79 million and $4 million of one- to four-family and home equity loans, respectively. The current FICO distribution at December 31, 2013 included original FICO scores for approximately $95 million and $10 million of one- to four-family and home equity loans, respectively. | ||||||||||||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||||||||||||
One- to four-family loans include interest-only loans for a five to ten year period, followed by an amortizing period ranging from 20 to 25 years. Approximately 43% of the Company's one- to four-family portfolio is not yet amortizing at March 31, 2014. However, during the trailing twelve months ended March 31, 2014, approximately 14% of these borrowers made voluntary annual principal payments of at least $2,500 and slightly over a third of those borrowers made voluntary annual principal payments of at least $10,000. | |||||||||||||||||||||||||||
The home equity loan portfolio is primarily second lien loans on residential real estate properties, which have a higher level of credit risk than first lien mortgage loans. Approximately 15% of the home equity portfolio was in the first lien position and the Company holds both the first and second lien positions in less than 1% of the home equity loan portfolio at March 31, 2014. The home equity loan portfolio consists of approximately 20% of home equity installment loans and approximately 80% of home equity lines of credit at March 31, 2014. | |||||||||||||||||||||||||||
Home equity installment loans are primarily fixed rate and fixed term, fully amortizing loans that do not offer the option of an interest-only payment. The majority of home equity lines of credit convert to amortizing loans at the end of the draw period, which typically ranges from five to ten years. Approximately 8% of this portfolio will require the borrowers to repay the loan in full at the end of the draw period. At March 31, 2014, the majority of the home equity line of credit portfolio had not converted from the interest-only draw period and approximately 80% of this portfolio will not begin amortizing until after 2014. However, during the trailing twelve months ended March 31, 2014, approximately 40% of the Company's borrowers made voluntary annual principal payments of at least $500 on their home equity lines of credit and slightly under half of those borrowers reduced their principal balance by at least $2,500. | |||||||||||||||||||||||||||
The following table outlines when one- to four-family and home equity lines of credit convert to amortizing by percentage of the one- to four-family portfolio and home equity line of credit portfolios, respectively, at March 31, 2014: | |||||||||||||||||||||||||||
Period of Conversion to Amortizing Loan | % of One-to Four-Family Portfolio | % of Home Equity Line of | |||||||||||||||||||||||||
Credit Portfolio | |||||||||||||||||||||||||||
Already amortizing | 57% | 12% | |||||||||||||||||||||||||
Through December 31, 2014 | 1% | 6% | |||||||||||||||||||||||||
Year ending December 31, 2015 | 5% | 27% | |||||||||||||||||||||||||
Year ending December 31, 2016 | 16% | 42% | |||||||||||||||||||||||||
Year ending December 31, 2017 | 21% | 13% | |||||||||||||||||||||||||
Approximately 40% of the Company’s mortgage loans receivable were concentrated in California at both March 31, 2014 and December 31, 2013. No other state had concentrations of mortgage loans that represented 10% or more of the Company’s mortgage loans receivable at March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||
Delinquent Loans | |||||||||||||||||||||||||||
The following table shows total loans receivable by delinquency category at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
Current | 30-89 Days | 90-179 Days | 180+ Days | Total | |||||||||||||||||||||||
Delinquent | Delinquent | Delinquent | |||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||
One- to four-family | $ | 3,180 | $ | 123 | $ | 27 | $ | 149 | $ | 3,479 | |||||||||||||||||
Home equity | 3,163 | 62 | 38 | 41 | 3,304 | ||||||||||||||||||||||
Consumer and other | 553 | 10 | 2 | — | 565 | ||||||||||||||||||||||
Total loans receivable | $ | 6,896 | $ | 195 | $ | 67 | $ | 190 | $ | 7,348 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
One- to four-family | $ | 3,988 | $ | 190 | $ | 70 | $ | 227 | $ | 4,475 | |||||||||||||||||
Home equity | 3,309 | 69 | 36 | 40 | 3,454 | ||||||||||||||||||||||
Consumer and other | 587 | 12 | 3 | — | 602 | ||||||||||||||||||||||
Total loans receivable | $ | 7,884 | $ | 271 | $ | 109 | $ | 267 | $ | 8,531 | |||||||||||||||||
Nonperforming Loans | |||||||||||||||||||||||||||
The Company classifies loans as nonperforming when they are no longer accruing interest. Nonaccrual loans include loans that are 90 days and greater past due, TDRs that are on nonaccrual status for all classes of loans and certain junior liens that have a delinquent senior lien. The following table shows the comparative data for nonaccrual loans (dollars in millions): | |||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||
One- to four-family | 316 | 526 | |||||||||||||||||||||||||
Home equity | 195 | 164 | |||||||||||||||||||||||||
Consumer and other | 2 | 3 | |||||||||||||||||||||||||
Total nonperforming loans receivable | 513 | 693 | |||||||||||||||||||||||||
Nonperforming loans decreased $180 million to $513 million at March 31, 2014 when compared to December 31, 2013. The decrease in the one- to four-family nonperforming loans receivable was primarily due to the transfer of one- to four-family loans modified as TDRs to held-for-sale, which included $377 million of nonperforming loans at March 31, 2014. The decrease in nonperforming loans receivable was partially offset by the increase in nonperforming TDRs that had been charged-off due to bankruptcy notification. In February 2014, the OCC issued clarifying guidance related to consumer debt discharged in Chapter 7 bankruptcy proceedings. As a result of the clarifying guidance, beginning the first quarter of 2014 these bankruptcy loans remain on nonaccrual status regardless of payment history. This change did not have a material impact on the statement of financial condition, results of operations or cash flows. Prior to this change, the Company had $238 million of bankruptcy loans as performing loans at December 31, 2013. | |||||||||||||||||||||||||||
Real Estate Owned and Loans with Formal Foreclosure Proceedings in Process | |||||||||||||||||||||||||||
At March 31, 2014 and December 31, 2013, the Company held $36 million and $50 million, respectively, of real estate owned that were acquired through foreclosure and through a deed in lieu of foreclosure or similar legal agreement. The Company also held $175 million and $199 million of loans for which formal foreclosure proceedings were in process at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||||
The following table provides a roll forward by loan portfolio of the allowance for loan losses for the three months ended March 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||
One- to | Home | Consumer | Total | ||||||||||||||||||||||||
Four-Family | Equity | and Other | |||||||||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 102 | $ | 326 | $ | 25 | $ | 453 | |||||||||||||||||||
Provision for loan losses | (18 | ) | 20 | 2 | 4 | ||||||||||||||||||||||
Charge-offs | (43 | ) | (24 | ) | (5 | ) | (72 | ) | |||||||||||||||||||
Recoveries | 11 | 5 | 2 | 18 | |||||||||||||||||||||||
Charge-offs, net | (32 | ) | (19 | ) | (3 | ) | (54 | ) | |||||||||||||||||||
Allowance for loan losses, end of period | $ | 52 | $ | 327 | $ | 24 | $ | 403 | |||||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||
One- to | Home | Consumer | Total | ||||||||||||||||||||||||
Four-Family | Equity | and Other | |||||||||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 184 | $ | 257 | $ | 40 | $ | 481 | |||||||||||||||||||
Provision for loan losses | (16 | ) | 55 | 4 | 43 | ||||||||||||||||||||||
Charge-offs | (19 | ) | (57 | ) | (17 | ) | (93 | ) | |||||||||||||||||||
Recoveries | 12 | 8 | 4 | 24 | |||||||||||||||||||||||
Charge-offs, net | (7 | ) | (49 | ) | (13 | ) | (69 | ) | |||||||||||||||||||
Allowance for loan losses, end of period | $ | 161 | $ | 263 | $ | 31 | $ | 455 | |||||||||||||||||||
The general allowance for loan losses also included a qualitative component to account for a variety of factors that are not directly considered in the quantitative loss model but are factors the Company believes may impact the level of credit losses. The qualitative component was $62 million at both March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||
Total allowance for loan losses decreased during the three months ended March 31, 2014 primarily due to the transfer of one- to four-family loans modified as TDRs to held-for-sale. As a result of this transfer, the Company recorded a charge-off related to one-to four-family loans of $42 million which drove the majority of the decrease in the allowance for loan losses. | |||||||||||||||||||||||||||
During the three months ended March 31, 2014 and 2013, the Company agreed to settlements with two third party mortgage originators specific to loans sold to the Company by those originators. One-time payments were agreed upon to satisfy in full all pending and future repurchase requests with those specific originators. The Company applied the full amount of payments of $11 million and $13 million for the three months ended March 31, 2014 and 2013, respectively, as recoveries to the allowance for loan losses, resulting in a corresponding reduction to net charge-offs as well as provision for loan losses. | |||||||||||||||||||||||||||
Impaired Loans—Troubled Debt Restructurings | |||||||||||||||||||||||||||
TDRs include two categories of loans: (1) loan modifications completed under the Company’s programs that involve granting an economic concession to a borrower experiencing financial difficulty, and (2) loans that have been charged off based on the estimated current value of the underlying property less estimated selling costs due to bankruptcy notification. Upon being classified as a TDR, such loan is categorized as an impaired loan and is considered impaired until maturity regardless of whether the borrower performs under the terms of the loan. Impairment on TDRs is measured on an individual basis. | |||||||||||||||||||||||||||
The unpaid principal balance in one- to four-family TDRs was $0.3 billion and $1.2 billion at March 31, 2014 and December 31, 2013, respectively. For home equity loans, the recorded investment in TDRs represents the unpaid principal balance. | |||||||||||||||||||||||||||
The following table shows a summary of the Company’s recorded investment in TDRs that were on accrual and nonaccrual status, in addition to the recorded investment of TDRs at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
Nonaccrual TDRs | |||||||||||||||||||||||||||
Accrual TDRs(1) | Current(2) | 30-89 Days | 90+ Days | Recorded | |||||||||||||||||||||||
Delinquent | Delinquent | Investment in TDRs | |||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||
One- to four-family | $ | 125 | $ | 119 | $ | 21 | $ | 56 | $ | 321 | |||||||||||||||||
Home equity | 132 | 57 | 15 | 28 | 232 | ||||||||||||||||||||||
Total | $ | 257 | $ | 176 | $ | 36 | $ | 84 | $ | 553 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
One- to four-family | $ | 774 | $ | 127 | $ | 102 | $ | 169 | $ | 1,172 | |||||||||||||||||
Home equity | 176 | 22 | 17 | 26 | 241 | ||||||||||||||||||||||
Total | $ | 950 | $ | 149 | $ | 119 | $ | 195 | $ | 1,413 | |||||||||||||||||
-1 | Represents loans modified as TDRs that are current and have made six or more consecutive payments. | ||||||||||||||||||||||||||
-2 | Represents loans modified as TDRs that are current but have not yet made six consecutive payments and certain junior lien TDRs that have a delinquent senior lien. | ||||||||||||||||||||||||||
The decrease in the one- to four-family TDRs was primarily due to the transfer of $0.8 billion of one- to four-family loans modified as TDRs to held-for-sale. | |||||||||||||||||||||||||||
The following table shows the average recorded investment and interest income recognized both on a cash and accrual basis for the Company’s TDRs during the years ended March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
One- to four-family | $ | 1,154 | $ | 1,221 | $ | 8 | $ | 8 | |||||||||||||||||||
Home equity | 237 | 281 | 4 | 5 | |||||||||||||||||||||||
Total | $ | 1,391 | $ | 1,502 | $ | 12 | $ | 13 | |||||||||||||||||||
Included in the allowance for loan losses was a specific valuation allowance of $75 million and $124 million that was established for TDRs at March 31, 2014 and December 31, 2013, respectively. The specific allowance for these individually impaired loans represents the forecasted losses over the estimated remaining life of the loan, including the economic concession to the borrower. The following table shows detailed information related to the Company’s TDRs at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Recorded | Specific | Net Investment | Recorded | Specific | Net Investment | ||||||||||||||||||||||
Investment | Valuation | in TDRs | Investment | Valuation | in TDRs | ||||||||||||||||||||||
in TDRs | Allowance | in TDRs | Allowance | ||||||||||||||||||||||||
With a recorded allowance: | |||||||||||||||||||||||||||
One- to four-family | $ | 97 | $ | 15 | $ | 82 | $ | 403 | $ | 60 | $ | 343 | |||||||||||||||
Home equity | $ | 135 | $ | 60 | $ | 75 | $ | 140 | $ | 64 | $ | 76 | |||||||||||||||
Without a recorded allowance:(1) | |||||||||||||||||||||||||||
One- to four-family | $ | 224 | $ | — | $ | 224 | $ | 769 | $ | — | $ | 769 | |||||||||||||||
Home equity | $ | 97 | $ | — | $ | 97 | $ | 101 | $ | — | $ | 101 | |||||||||||||||
Total: | |||||||||||||||||||||||||||
One- to four-family | $ | 321 | $ | 15 | $ | 306 | $ | 1,172 | $ | 60 | $ | 1,112 | |||||||||||||||
Home equity | $ | 232 | $ | 60 | $ | 172 | $ | 241 | $ | 64 | $ | 177 | |||||||||||||||
-1 | Represents loans where the discounted cash flow analysis or collateral value is equal to or exceeds the recorded investment in the loan. | ||||||||||||||||||||||||||
Troubled Debt Restructurings — Loan Modifications | |||||||||||||||||||||||||||
The Company has loan modification programs that focus on the mitigation of potential losses in the one- to four-family and home equity mortgage loan portfolio. The Company currently does not have an active loan modification program for consumer and other loans. The various types of economic concessions that may be granted typically consist of interest rate reductions, maturity date extensions, principal forgiveness or a combination of these concessions. Trial modifications are classified immediately as TDRs and continue to be reported as delinquent until the successful completion of the trial period, which is typically 90 days. The loan then becomes a permanent modification reported as current but remains on nonaccrual status until six consecutive payments have been made. | |||||||||||||||||||||||||||
The vast majority of the Company’s loans modified as TDRs include an interest rate reduction in combination with another type of concession. The Company prioritizes the interest rate reduction modifications in combination with the following modification categories: principal forgiven, principal deferred and re-age/extension/capitalization of accrued interest. Each class is mutually exclusive in that if a modification had an interest rate reduction with principal forgiven and an extension, the modification would only be presented in the principal forgiven column in the table below. The following tables provide the number of loans, post-modification balances immediately after being modified by major class, and the financial impact of modifications during the three months ended March 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||
Interest Rate Reduction | |||||||||||||||||||||||||||
Number of | Principal | Principal | Re-age/Extension/ | Other with Interest | Other | Total | |||||||||||||||||||||
Loans | Forgiven | Deferred | Interest Capitalization | Rate Reduction | |||||||||||||||||||||||
One- to four-family | 33 | $ | 1 | $ | — | $ | 4 | $ | 2 | $ | 4 | $ | 11 | ||||||||||||||
Home equity | 46 | — | — | 2 | 1 | 1 | 4 | ||||||||||||||||||||
Total | 79 | $ | 1 | $ | — | $ | 6 | $ | 3 | $ | 5 | $ | 15 | ||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||
Interest Rate Reduction | |||||||||||||||||||||||||||
Number of | Principal | Principal | Re-age/ | Other with | Other | Total | |||||||||||||||||||||
Loans | Forgiven | Deferred | Extension/ | Interest Rate | |||||||||||||||||||||||
Interest | Reduction | ||||||||||||||||||||||||||
Capitalization | |||||||||||||||||||||||||||
One- to four-family | 93 | $ | 8 | $ | 2 | $ | 20 | $ | 1 | $ | 5 | $ | 36 | ||||||||||||||
Home equity | 66 | — | — | 1 | 3 | 1 | 5 | ||||||||||||||||||||
Total | 159 | $ | 8 | $ | 2 | $ | 21 | $ | 4 | $ | 6 | $ | 41 | ||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
Financial Impact | Financial Impact | ||||||||||||||||||||||||||
Principal | Pre-Modification | Post-Modification | Principal | Pre-Modification Weighted Average | Post-Modification | ||||||||||||||||||||||
Forgiven | Weighted Average Interest Rate | Weighted Average Interest Rate | Forgiven | Interest Rate | Weighted Average Interest Rate | ||||||||||||||||||||||
One- to four-family | $ | — | 4.8 | % | 2.7 | % | $ | 3 | 5.2 | % | 2.3 | % | |||||||||||||||
Home equity | — | 4.3 | % | 2 | % | — | 4.5 | % | 1.3 | % | |||||||||||||||||
Total | $ | — | $ | 3 | |||||||||||||||||||||||
The Company considers modifications that become 30 days past due to have experienced a payment default. The following table shows the recorded investment in modifications that experienced a payment default within 12 months after the modification for the three months ended March 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||
Loans | Investment | Loans | Investment | ||||||||||||||||||||||||
One- to four-family(1) | 18 | $ | 7 | 54 | $ | 19 | |||||||||||||||||||||
Home equity(2) | 8 | — | 24 | 1 | |||||||||||||||||||||||
Total | 26 | $ | 7 | 78 | $ | 20 | |||||||||||||||||||||
-1 | For the three months ended March 31, 2014 and 2013, $2 million and $3 million, respectively, of the recorded investment in one- to four-family loans that had a payment default in the trailing 12 months were classified as current. | ||||||||||||||||||||||||||
-2 | For both the three months ended March 31, 2014 and 2013, less than $1 million of the recorded investment in home equity loans that had a payment default in the trailing 12 months were classified as current. | ||||||||||||||||||||||||||
The delinquency status is the primary measure the Company uses to evaluate the performance of loans modified as TDRs. The following table shows the loans modified as TDRs by delinquency category at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
Modifications | Modifications | Modifications | Modifications | Recorded | |||||||||||||||||||||||
Current | 30-89 Days | 90-179 Days | 180+ Days | Investment in | |||||||||||||||||||||||
Delinquent | Delinquent | Delinquent | Modifications | ||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||
One- to four-family | $ | 161 | $ | 12 | $ | 4 | $ | 8 | $ | 185 | |||||||||||||||||
Home equity | 155 | 12 | 6 | 9 | 182 | ||||||||||||||||||||||
Total | $ | 316 | $ | 24 | $ | 10 | $ | 17 | $ | 367 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
One- to four-family | $ | 817 | $ | 92 | $ | 39 | $ | 88 | $ | 1,036 | |||||||||||||||||
Home equity | 162 | 13 | 4 | 9 | 188 | ||||||||||||||||||||||
Total | $ | 979 | $ | 105 | $ | 43 | $ | 97 | $ | 1,224 | |||||||||||||||||
The decrease in the one- to four-family TDRs was primarily due to the transfer of $0.8 billion of our one- to four-family loans modified as TDRs to held-for-sale. |
Accounting_for_Derivative_Inst
Accounting for Derivative Instruments and Hedging Activities | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ' | |||||||||||||||||||||||
ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||||||||||||||
The Company enters into derivative transactions primarily to protect against interest rate risk on the value of certain assets, liabilities and future cash flows. Cash flow hedges, which include a combination of interest rate swaps and purchased options, including caps and floors, are used primarily to reduce the variability of future cash flows associated with existing variable-rate assets and liabilities and forecasted issuances of liabilities. Fair value hedges, which include interest rate swaps, are used to offset exposure to changes in value of certain fixed-rate assets and liabilities. Each derivative is recorded on the consolidated balance sheet at fair value as a freestanding asset or liability. The following table summarizes the fair value amounts of derivatives designated as hedging instruments reported in the consolidated balance sheet at March 31, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
Notional | Asset(1) | Liability(2) | Net(3) | |||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Pay-fixed rate swaps | $ | 2,025 | $ | 13 | $ | (139 | ) | $ | (126 | ) | ||||||||||||||
Purchased options | 825 | 7 | — | 7 | ||||||||||||||||||||
Total cash flow hedges | 2,850 | 20 | (139 | ) | (119 | ) | ||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||
Pay-fixed rate swaps | 1,313 | 46 | (5 | ) | 41 | |||||||||||||||||||
Total derivatives designated as hedging instruments(4) | $ | 4,163 | $ | 66 | $ | (144 | ) | $ | (78 | ) | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Pay-fixed rate swaps | $ | 2,480 | $ | 19 | $ | (168 | ) | $ | (149 | ) | ||||||||||||||
Purchased options | 825 | 8 | — | 8 | ||||||||||||||||||||
Total cash flow hedges | 3,305 | 27 | (168 | ) | (141 | ) | ||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||
Pay-fixed rate swaps | 1,614 | 80 | (1 | ) | 79 | |||||||||||||||||||
Total derivatives designated as hedging instruments(4) | $ | 4,919 | $ | 107 | $ | (169 | ) | $ | (62 | ) | ||||||||||||||
-1 | Reflected in the other assets line item on the consolidated balance sheet. | |||||||||||||||||||||||
-2 | Reflected in the other liabilities line item on the consolidated balance sheet. | |||||||||||||||||||||||
-3 | Represents derivative assets net of derivative liabilities for disclosure purposes only. | |||||||||||||||||||||||
-4 | All derivatives were designated as hedging instruments at March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||
The effective portion of changes in fair value of the derivative instruments that hedge cash flows is reported as a component of accumulated other comprehensive loss, net of tax in the consolidated balance sheet, for both active and discontinued hedges. Amounts are included in net operating interest income as a yield adjustment in the same period the hedged forecasted transaction affects earnings. The ineffective portion of changes in fair value of the derivative instrument, which is equal to the excess of the cumulative change in the fair value of the actual derivative over the cumulative change in the fair value of a hypothetical derivative which is created to match the exact terms of the underlying instruments being hedged, is reported in the gains on loans and securities, net line item in the consolidated statement of income. | ||||||||||||||||||||||||
If it becomes probable that a hedged forecasted transaction will not occur, amounts included in accumulated other comprehensive loss related to the specific hedging instruments would be immediately reclassified into the gains on loans and securities, net line item in the consolidated statement of income. If hedge accounting is discontinued because a derivative instrument is sold, terminated or otherwise de-designated, amounts included in accumulated other comprehensive loss related to the specific hedging instrument continue to be reported in accumulated other comprehensive loss until the forecasted transaction affects earnings. | ||||||||||||||||||||||||
The future issuances of liabilities, including repurchase agreements, are largely dependent on the market demand and liquidity in the wholesale borrowings market. At March 31, 2014, the Company believes the forecasted issuance of all debt in cash flow hedge relationships is probable. However, unexpected changes in market conditions in future periods could impact the ability to issue this debt. The Company believes the forecasted issuance of debt in the form of repurchase agreements is most susceptible to an unexpected change in market conditions. | ||||||||||||||||||||||||
The following table summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in cash flow hedges on accumulated other comprehensive loss and on the consolidated statement of income for the three months ended March 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2014(1) | 2013(1) | |||||||||||||||||||||||
Gains (losses) on derivatives recognized in OCI (effective portion), net of tax | $ | (16 | ) | $ | 6 | |||||||||||||||||||
Losses reclassified from AOCI into earnings (effective portion), net of tax | $ | (21 | ) | $ | (20 | ) | ||||||||||||||||||
-1 | The Company had cash flow hedge ineffectiveness gains of less than $1 million at both the three months ended March 31, 2014 and 2013, which are reflected in the gains on loans and securities, net line item on the consolidated statement of income. | |||||||||||||||||||||||
During the upcoming twelve months, the Company expects to include a pre-tax amount of approximately $123 million of net unrealized losses that are currently reflected in accumulated other comprehensive loss in net operating interest income as a yield adjustment in the same periods in which the related hedged items affect earnings. The maximum length of time over which transactions are hedged is 9 years. | ||||||||||||||||||||||||
The following table shows the balance in accumulated other comprehensive loss attributable to active and discontinued cash flow hedges at March 31, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Accumulated other comprehensive loss balance (net of tax) related to: | ||||||||||||||||||||||||
Discontinued cash flow hedges | $ | (196 | ) | $ | (201 | ) | ||||||||||||||||||
Active cash flow hedges | (97 | ) | (97 | ) | ||||||||||||||||||||
Total cash flow hedges | $ | (293 | ) | $ | (298 | ) | ||||||||||||||||||
The following table shows the balance in accumulated other comprehensive loss attributable to cash flow hedges by type of hedged item at March 31, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Repurchase agreements | $ | (376 | ) | $ | (379 | ) | ||||||||||||||||||
FHLB advances | (94 | ) | (99 | ) | ||||||||||||||||||||
Total balance of cash flow hedges, before tax | (470 | ) | (478 | ) | ||||||||||||||||||||
Tax benefit | 177 | 180 | ||||||||||||||||||||||
Total balance of cash flow hedges, net of tax | $ | (293 | ) | $ | (298 | ) | ||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||
Fair value hedges are accounted for by recording the fair value of the derivative instrument and the fair value of the asset or liability being hedged on the consolidated balance sheet. Changes in the fair value of both the derivatives and the underlying assets or liabilities are recognized in the gains on loans and securities, net line item in the consolidated statement of income. To the extent that the hedge is ineffective, the changes in the fair values will not offset and the difference, or hedge ineffectiveness, is reflected in the gains on loans and securities, net line item in the consolidated statement of income. | ||||||||||||||||||||||||
Hedge accounting is discontinued for fair value hedges if a derivative instrument is sold, terminated or otherwise de-designated. If fair value hedge accounting is discontinued, the previously hedged item is no longer adjusted for changes in fair value through the consolidated statement of income and the cumulative net gain or loss on the hedged asset or liability at the time of de-designation is amortized to interest income or interest expense using the effective interest method over the expected remaining life of the hedged item. Changes in the fair value of the derivative instruments after de-designation of fair value hedge accounting are recorded in the gains on loans and securities, net line item in the consolidated statement of income. | ||||||||||||||||||||||||
The following table summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in fair value hedges and related hedged items on the consolidated statement of income for the three months ended March 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Hedging | Hedged | Hedge | Hedging | Hedged | Hedge | |||||||||||||||||||
Instrument | Item | Ineffectiveness(1) | Instrument | Item | Ineffectiveness(1) | |||||||||||||||||||
Agency debentures | $ | (31 | ) | $ | 27 | $ | (4 | ) | $ | 16 | $ | (16 | ) | $ | — | |||||||||
Agency mortgage-backed securities | (11 | ) | 11 | — | — | — | — | |||||||||||||||||
Total gains (losses) included in earnings | $ | (42 | ) | $ | 38 | $ | (4 | ) | $ | 16 | $ | (16 | ) | $ | — | |||||||||
-1 | Reflected in the gains on loans and securities, net line item on the consolidated statement of income. |
Securities_Sold_Under_Agreemen
Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Securities Sold Under Agreements To Repurchase and FHLB Advances and Other Borrowings Disclosure [Abstract] | ' | |||||||||||||||||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND FHLB ADVANCES AND OTHER BORROWINGS | ' | |||||||||||||||||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND FHLB ADVANCES AND OTHER BORROWINGS | ||||||||||||||||||
Securities sold under agreements to repurchase, FHLB advances and other borrowings at March 31, 2014 and December 31, 2013 are shown in the following table (dollars in millions): | ||||||||||||||||||
FHLB Advances and | ||||||||||||||||||
Other Borrowings | ||||||||||||||||||
Repurchase | FHLB | Other | Total | Weighted | ||||||||||||||
Agreements(1) | Advances | Average | ||||||||||||||||
Interest Rate | ||||||||||||||||||
Due within one year | $ | 3,595 | $ | 270 | $ | 1 | $ | 3,866 | 0.33% | |||||||||
Due between one and two years | 350 | — | 1 | 351 | 0.83% | |||||||||||||
Due between two and three years | 400 | 250 | 1 | 651 | 0.86% | |||||||||||||
Due between three and four years | — | 400 | — | 400 | 0.40% | |||||||||||||
Thereafter | — | — | 428 | 428 | 2.92% | |||||||||||||
Subtotal | 4,345 | 920 | 431 | 5,696 | 0.62% | |||||||||||||
Fair value hedge adjustments | — | 27 | — | 27 | ||||||||||||||
Deferred costs | — | (91 | ) | — | (91 | ) | ||||||||||||
Total other borrowings at March 31, 2014 | $ | 4,345 | $ | 856 | $ | 431 | $ | 5,632 | 0.62% | |||||||||
Total other borrowings at December 31, 2013 | $ | 4,543 | $ | 851 | $ | 428 | $ | 5,822 | 0.72% | |||||||||
-1 | The maximum amount at any month end for repurchase agreements was $4.9 billion and $4.6 billion for three months ended March 31, 2014 and the year ended December 31, 2013, respectively. | |||||||||||||||||
Securities Sold Under Agreements to Repurchase | ||||||||||||||||||
During the three months ended March 31, 2014, the Company paid down in advance of maturity $100 million of its fixed-rate repurchase agreements for which losses on early extinguishment of debt of $12 million were recorded in the consolidated statement of income. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||||
The following tables present after-tax changes in each component of accumulated other comprehensive loss for the three months ended March 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||
Available-for-sale | Cash Flow | Foreign | Total | |||||||||||||
Securities | Hedging | Currency | ||||||||||||||
Instruments | Translation | |||||||||||||||
Beginning balance, December 31, 2013 | $ | (160 | ) | $ | (298 | ) | $ | 5 | $ | (453 | ) | |||||
Other comprehensive income (loss) before reclassifications | 81 | (16 | ) | — | 65 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | (12 | ) | 21 | — | 9 | |||||||||||
Net change | 69 | 5 | — | 74 | ||||||||||||
Ending balance, March 31, 2014 | $ | (91 | ) | $ | (293 | ) | $ | 5 | $ | (379 | ) | |||||
Available-for-sale | Cash Flow | Foreign | Total | |||||||||||||
Securities | Hedging | Currency | ||||||||||||||
Instruments | Translation | |||||||||||||||
Beginning balance, December 31, 2012 | $ | 137 | $ | (452 | ) | $ | 5 | $ | (310 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (5 | ) | 6 | — | 1 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | (10 | ) | 20 | — | 10 | |||||||||||
Net change | (15 | ) | 26 | — | 11 | |||||||||||
Ending balance, March 31, 2013 | $ | 122 | $ | (426 | ) | $ | 5 | $ | (299 | ) | ||||||
The following table presents the income statement line items impacted by reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||
Accumulated Other Comprehensive Loss Components | Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Items in the Consolidated Statement of Income | ||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
$ | 19 | $ | 16 | Gains on loans and securities, net | ||||||||||||
(7 | ) | (6 | ) | Tax expense | ||||||||||||
$ | 12 | $ | 10 | Reclassification into earnings, net | ||||||||||||
Cash flow hedging instruments: | ||||||||||||||||
$ | — | $ | 2 | Operating interest income | ||||||||||||
(35 | ) | (35 | ) | Operating interest expense | ||||||||||||
(35 | ) | (33 | ) | Reclassification into earnings, before tax | ||||||||||||
14 | 13 | Tax expense | ||||||||||||||
$ | (21 | ) | $ | (20 | ) | Reclassification into earnings, net |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
EARNINGS PER SHARE | ' | |||||||
EARNINGS PER SHARE | ||||||||
The following table presents a reconciliation of basic and diluted earnings per share (in millions, except share data and per share amounts): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Basic: | ||||||||
Net income | $ | 97 | $ | 35 | ||||
Basic weighted-average shares outstanding (in thousands) | 288,051 | 286,626 | ||||||
Basic earnings per share | $ | 0.34 | $ | 0.12 | ||||
Diluted: | ||||||||
Net income | $ | 97 | $ | 35 | ||||
Basic weighted-average shares outstanding (in thousands) | 288,051 | 286,626 | ||||||
Effect of dilutive securities: | ||||||||
Weighted-average convertible debentures (in thousands) | 4,080 | 4,125 | ||||||
Weighted-average options and restricted stock issued to employees (in thousands) | 1,688 | 945 | ||||||
Diluted weighted-average shares outstanding (in thousands) | 293,819 | 291,696 | ||||||
Diluted earnings per share | $ | 0.33 | $ | 0.12 | ||||
As of March 31, 2014 and 2013, the Company excluded 0.7 million and 2.7 million shares, respectively, of stock options and restricted stock awards and units form the calculations of diluted earnings per share as the effect would have been anti-dilutive. |
Regulatory_Requirements
Regulatory Requirements | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | |||||||||||||||||
REGULATORY REQUIREMENTS | ' | |||||||||||||||||
REGULATORY REQUIREMENTS | ||||||||||||||||||
Registered Broker-Dealers | ||||||||||||||||||
The Company’s largest U.S. broker-dealer subsidiaries are subject to the Uniform Net Capital Rule (the "Rule") under the Securities Exchange Act of 1934 administered by the SEC and FINRA, which requires the maintenance of minimum net capital. The minimum net capital requirements can be met under either the Aggregate Indebtedness method or the Alternative method. Under the Aggregate Indebtedness method, a broker-dealer is required to maintain minimum net capital of the greater of 6 2/3% of its aggregate indebtedness, as defined, or a minimum dollar amount. Under the Alternative method, a broker-dealer is required to maintain net capital equal to the greater of $250,000 or 2% of aggregate debit balances arising from customer transactions. The method used depends on the individual U.S. broker-dealer subsidiary. The Company’s other broker-dealers, including its international broker-dealer subsidiaries located in Europe and Asia, are subject to capital requirements determined by their respective regulators. | ||||||||||||||||||
At March 31, 2014 and December 31, 2013, all of the Company’s broker-dealer subsidiaries met minimum net capital requirements. The tables below summarize the minimum excess capital requirements for the Company’s broker-dealer subsidiaries at March 31, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||||||
Required Net | Net Capital | Excess Net | ||||||||||||||||
Capital | Capital | |||||||||||||||||
March 31, 2014: | ||||||||||||||||||
E*TRADE Clearing LLC(1) | $ | 160 | $ | 726 | $ | 566 | ||||||||||||
E*TRADE Securities LLC(1) | — | 315 | 315 | |||||||||||||||
Other broker-dealers | 2 | 15 | 13 | |||||||||||||||
Total | $ | 162 | $ | 1,056 | $ | 894 | ||||||||||||
December 31, 2013: | ||||||||||||||||||
E*TRADE Clearing LLC(1) | $ | 144 | $ | 715 | $ | 571 | ||||||||||||
E*TRADE Securities LLC(1) | — | 261 | 261 | |||||||||||||||
G1 Execution Services, LLC(2) | 1 | 22 | 21 | |||||||||||||||
Other broker-dealers | 2 | 22 | 20 | |||||||||||||||
Total | $ | 147 | $ | 1,020 | $ | 873 | ||||||||||||
-1 | Elected to use the Alternative method to compute net capital. The net capital requirement was $250,000 for E*TRADE Securities LLC for both periods presented. | |||||||||||||||||
-2 | Elected to use the Aggregate Indebtedness method to compute net capital. G1 Execution Services, LLC is the Company's market maker and was held-for-sale at December 31, 2013. The sale of G1 Execution Services, LLC was completed on February 10, 2014. | |||||||||||||||||
Banking | ||||||||||||||||||
E*TRADE Bank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on E*TRADE Bank’s financial condition and results of operations. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, E*TRADE Bank must meet specific capital guidelines that involve quantitative measures of E*TRADE Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. In addition, E*TRADE Bank may not pay dividends to the parent company without approval from its regulators and any loans by E*TRADE Bank to the parent company and its other non-bank subsidiaries are subject to various quantitative, arm’s length, collateralization and other requirements. E*TRADE Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | ||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require E*TRADE Bank to meet minimum total capital, Tier 1 capital and Tier 1 leverage ratios. As shown in the table below, at both March 31, 2014 and December 31, 2013, E*TRADE Bank was categorized as "well capitalized" under the regulatory framework for prompt corrective action. However, events beyond management's control, such as deterioration in credit markets, could adversely affect future earnings and E*TRADE Bank's ability to meet future capital requirements and ability to pay dividends to the parent company. E*TRADE Bank’s actual and required capital amounts and ratios at March 31, 2014 and December 31, 2013 are presented in the table below (dollars in millions): | ||||||||||||||||||
Actual | Minimum Required to be | |||||||||||||||||
Well Capitalized Under | ||||||||||||||||||
Prompt Corrective | ||||||||||||||||||
Action Provisions | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Excess Capital | ||||||||||||||
March 31, 2014: | ||||||||||||||||||
Total capital | $ | 4,429 | 24.02 | % | $ | 1,844 | 10 | % | $ | 2,585 | ||||||||
Tier 1 capital | $ | 4,196 | 22.76 | % | $ | 1,106 | 6 | % | $ | 3,090 | ||||||||
Tier 1 leverage | $ | 4,196 | 9.67 | % | $ | 2,169 | 5 | % | $ | 2,027 | ||||||||
December 31, 2013: | ||||||||||||||||||
Total capital | $ | 4,331 | 24.25 | % | $ | 1,786 | 10 | % | $ | 2,545 | ||||||||
Tier 1 capital | $ | 4,105 | 22.98 | % | $ | 1,072 | 6 | % | $ | 3,033 | ||||||||
Tier 1 leverage | $ | 4,105 | 9.51 | % | $ | 2,158 | 5 | % | $ | 1,947 | ||||||||
Commitments_Contingencies_and_
Commitments, Contingencies and Other Regulatory Matters | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS, CONTINGENCIES AND OTHER REGULATORY MATTERS | ' |
COMMITMENTS, CONTINGENCIES AND OTHER REGULATORY MATTERS | |
Legal Matters | |
Litigation Matters | |
On October 27, 2000, Ajaxo, Inc. ("Ajaxo") filed a complaint in the Superior Court for the State of California, County of Santa Clara. Ajaxo sought damages and certain non-monetary relief for the Company’s alleged breach of a non-disclosure agreement with Ajaxo pertaining to certain wireless technology that Ajaxo offered the Company as well as damages and other relief against the Company for their alleged misappropriation of Ajaxo’s trade secrets. Following a jury trial, a judgment was entered in 2003 in favor of Ajaxo against the Company for $1 million for breach of the Ajaxo non-disclosure agreement. Although the jury found in favor of Ajaxo on its claim against the Company for misappropriation of trade secrets, the trial court subsequently denied Ajaxo’s requests for additional damages and relief. On December 21, 2005, the California Court of Appeal affirmed the above-described award against the Company for breach of the nondisclosure agreement but remanded the case to the trial court for the limited purpose of determining what, if any, additional damages Ajaxo may be entitled to as a result of the jury’s previous finding in favor of Ajaxo on its claim against the Company for misappropriation of trade secrets. Although the Company paid Ajaxo the full amount due on the above-described judgment, the case was remanded back to the trial court, and on May 30, 2008, a jury returned a verdict in favor of the Company denying all claims raised and demands for damages against the Company. Following the trial court’s filing of entry of judgment in favor of the Company on September 5, 2008, Ajaxo filed post-trial motions for vacating this entry of judgment and requesting a new trial. By order dated November 4, 2008, the trial court denied these motions. On December 2, 2008, Ajaxo filed a notice of appeal with the Court of Appeal of the State of California for the Sixth District. Oral argument on the appeal was heard on July 15, 2010. On August 30, 2010, the Court of Appeal affirmed the trial court’s verdict in part and reversed the verdict in part, remanding the case. The Company petitioned the Supreme Court of California for review of the Court of Appeal decision. On December 16, 2010, the California Supreme Court denied the Company’s petition for review and remanded for further proceedings to the trial court. On September 20, 2011, the trial court granted limited discovery at a conference on November 4, 2011. The testimonial phase of the third trial in this matter concluded on June 12, 2012. Written closing statements were submitted on January 17, 2014, and responses were filed on February 14, 2014. The parties await decision on whether there will be a second phase of this bench trial. The Company will continue to defend itself vigorously. | |
On May 16, 2011, Droplets Inc., the holder of two patents pertaining to user interface servers, filed a complaint in the U.S. District Court for the Eastern District of Texas against E*TRADE Financial Corporation, E*TRADE Securities LLC, E*TRADE Bank and multiple other unaffiliated financial services firms. Plaintiff contends that the defendants engaged in patent infringement under federal law. Plaintiff seeks unspecified damages and an injunction against future infringements, plus royalties, costs, interest and attorneys’ fees. On September 30, 2011, the Company and several co-defendants filed a motion to transfer the case to the Southern District of New York. Venue discovery occurred throughout December 2011. On January 1, 2012, a new judge was assigned to the case. On March 28, 2012, a change of venue was granted and the case was transferred to the United States District Court for the Southern District of New York. The Company filed its answer and counterclaim on June 13, 2012 and plaintiff moved to dismiss the counterclaim. The Company filed a motion for summary judgment. Plaintiffs sought to change venue back to the Eastern District of Texas on the theory that this case is one of several matters that should be consolidated in a single multi-district litigation. On December 12, 2012, the Multidistrict Litigation Panel denied the transfer of this action to Texas. By opinion dated April 4, 2013, the Court denied defendants’ motion for summary judgment and plaintiff’s motion to dismiss the counterclaims. The Court issued its order on claim construction on October 22, 2013, and by order dated January 28, 2014, the Court adopted the defendants' proposed claims construction. On March 25, 2014, the Court granted plaintiff leave to amend its complaint to add a newly-issued patent, but stayed all litigation pertaining to that patent until a covered business method review could be heard by the Patent and Trademark Appeals Board. The Company will continue to defend itself vigorously in this matter, both in the District Court and at the U.S. Patent and Trademark Office. | |
Several cases have been filed nationwide involving the April 2007 leveraged buyout ("LBO") of the Tribune Company ("Tribune") by Sam Zell, and the subsequent bankruptcy of Tribune. In William Niese et al. v. A.G. Edwards et al., in Superior Court of Delaware, New Castle County, former Tribune employees and retirees claimed that Tribune was actually insolvent at the time of the LBO and that the LBO constituted a fraudulent transaction that depleted the plaintiffs’ retirement plans, rendering them worthless. E*TRADE Clearing LLC, along with numerous other financial institutions, is a named defendant in this case. One of the defendants removed the action to federal district court in Delaware on July 1, 2011. In Deutsche Bank Trust Company Americas et al. v. Adaly Opportunity Fund et al., filed in the Supreme Court of New York, New York County on June 3, 2011, the Trustees of certain notes issued by Tribune allege wrongdoing in connection with the LBO. In particular the Trustees claim that the LBO constituted a constructive fraudulent transfer under various state laws. G1 Execution Services, LLC (formerly known as E*TRADE Capital Markets, LLC), along with numerous other financial institutions, is a named defendant in this case. In Deutsche Bank et al. v. Ohlson et al., filed in the U.S. District Court for the Northern District of Illinois, noteholders of Tribune asserted claims of constructive fraud and G1 Execution Services, LLC is a named defendant in this case. Under the agreement governing the sale of G1 Execution Services, LLC to Susquehanna, the Company remains responsible for any resulting actions taken against G1 Execution Services, LLC as a result of such investigation. In EGI-TRB LLC et al. v. ABN-AMRO et al., filed in the Circuit Court of Cook County Illinois, creditors of Tribune assert fraudulent conveyance claims against multiple shareholder defendants and E*TRADE Clearing LLC is a named defendant in this case. These cases have been consolidated into a multi-district litigation. The Company’s time to answer or otherwise respond to the complaints has been stayed pending further orders of the Court. On September 18, 2013, the Court entered the Fifth Amended Complaint. On September 23, 2013, the Court granted the defendants’ motion to dismiss the individual creditors’ complaint. The individual creditors filed a notice of appeal. The steering committees for plaintiffs and defendants have submitted a joint plan for the next phase of litigation. The next phase of the action will involve individual motions to dismiss. It is expected to continue through 2014. The Company will defend itself vigorously in these matters. | |
On April 30, 2013, a putative class action was filed by John Scranton, on behalf of himself and a class of persons similarly situated, against E*TRADE Financial Corporation and E*TRADE Securities LLC in the Superior Court of California, County of Santa Clara, pursuant to the California procedures for a private Attorney General action. The Complaint alleged that the Company misrepresented through its website that it would always automatically exercise options that were in-the-money by $0.01 or more on expiration date. Plaintiffs allege violations of the California Unfair Competition Law, the California Consumer Remedies Act, fraud, misrepresentation, negligent misrepresentation and breach of fiduciary duty. The case has been deemed complex within the meaning of the California Rules of Court, and a case management conference was held on September 13, 2013. The Company’s demurrer and motion to strike the complaint were granted by order dated December 20, 2013. The Court granted leave to amend the complaint. A second amended complaint was filed on January 31, 2014. On March 11, 2014, the Company moved to strike and for a demurrer to the second amended complaint. A hearing on these motions is scheduled for July 18, 2014. The Company will continue to defend itself vigorously in this matter. | |
On April 18, 2014, a putative class action was filed by the City of Providence, Rhode Island against forty-one high frequency trading firms, stock exchanges, market-makers, and other broker-dealers, including the Company, in the U.S. District Court for the Southern District of New York. The Complaint alleges that the high frequency trading firms, certain broker-dealers managing dark pools, and the exchanges manipulated the U.S. Securities markets, and that numerous market-makers and broker-dealers participated in that manipulation by doing business with the high frequency traders. As to the Company, the Complaint alleges violation of Sections 10(b) and 20(a) of the Exchange Act. On May 2, 2014, a similar putative class action was filed by American European Insurance Company against forty-two high frequency trading firms, stock exchanges, market-makers, and other broker-dealers, including the Company, in the U.S. District Court for the Southern District of New York. The action filed by American European Insurance Company made allegations substantially similar to the allegations in the City of Providence complaint. While there can be no assurances, the Company's legal counsel believes the claims against it have no merit, and that the Company will ultimately prevail. The Company will defend itself vigorously in this matter. | |
In addition to the matters described above, the Company is subject to various legal proceedings and claims that arise in the normal course of business. In each pending matter, the Company contests liability or the amount of claimed damages. In view of the inherent difficulty of predicting the outcome of such matters, particularly in cases where claimants seek substantial or indeterminate damages, or where investigation or discovery have yet to be completed, the Company is unable to reasonably estimate a range of possible losses on its remaining outstanding legal proceedings; however, the Company believes any losses would not be reasonably likely to have a material adverse effect on the consolidated financial condition or results of operations of the Company. | |
An unfavorable outcome in any matter could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. In addition, even if the ultimate outcomes are resolved in the Company’s favor, the defense of such litigation could entail considerable cost or the diversion of the efforts of management, either of which could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. | |
Regulatory Matters | |
The securities, futures, foreign currency and banking industries are subject to extensive regulation under federal, state and applicable international laws. From time to time, the Company has been threatened with or named as a defendant in lawsuits, arbitrations and administrative claims involving securities, banking and other matters. The Company is also subject to periodic regulatory audits and inspections. Compliance and trading problems that are reported to regulators, such as the SEC, FINRA, CFTC, NFA or OCC by dissatisfied customers or others are investigated by such regulators, and may, if pursued, result in formal claims being filed against the Company by customers or disciplinary action being taken against the Company or its employees by regulators. Any such claims or disciplinary actions that are decided against the Company could have a material impact on the financial results of the Company or any of its subsidiaries. | |
During 2012, the Company completed a review of order handling practices and pricing for order flow between E*TRADE Securities LLC and G1 Execution Services, LLC. The Company has implemented changes to its practices and procedures that were recommended during the review. Banking regulators and federal securities regulators were regularly updated during the course of the review and may initiate investigations into the Company’s historical practices which could subject it to monetary penalties and cease-and-desist orders, which could also prompt claims by customers of E*TRADE Securities LLC. Any of these actions could materially and adversely affect the Company’s broker-dealer businesses. On July 11, 2013, FINRA notified E*TRADE Securities LLC and G1 Execution Services, LLC that it is conducting an examination of both firms’ routing practices. The Company is cooperating fully with FINRA in this examination, as under the agreement governing the sale of G1 Execution Services, LLC to Susquehanna, it remains responsible for any resulting actions taken against G1 Execution Services, LLC as a result of such investigation. | |
Insurance | |
The Company maintains insurance coverage that management believes is reasonable and prudent. The principal insurance coverage it maintains covers commercial general liability; property damage; hardware/software damage; cyber liability; directors and officers; employment practices liability; certain criminal acts against the Company; and errors and omissions. The Company believes that such insurance coverage is adequate for the purpose of its business. The Company’s ability to maintain this level of insurance coverage in the future, however, is subject to the availability of affordable insurance in the marketplace. | |
Estimated Liabilities | |
For all legal matters, an estimated liability is established in accordance with the loss contingencies accounting guidance. Once established, the estimated liability is adjusted based on available information when an event occurs requiring an adjustment. | |
Commitments | |
In the normal course of business, the Company makes various commitments to extend credit and incur contingent liabilities that are not reflected in the consolidated balance sheet. Significant changes in the economy or interest rates may influence the impact that these commitments and contingencies have on the Company in the future. | |
Other Investments | |
The Company has investments in low-income housing tax credit partnerships and other limited partnerships. The Company had $1 million in unfunded commitments with respect to these investments at March 31, 2014. | |
Unused Lines of Credit and Certificates of Deposit | |
At March 31, 2014, the Company had approximately $43 million of certificates of deposit scheduled to mature in less than one year and $224 million of unfunded commitments to extend credit. | |
Guarantees | |
In prior periods when the Company sold loans, the Company provided guarantees to investors purchasing mortgage loans, which are considered standard representations and warranties within the mortgage industry. The primary guarantees are that: the mortgage and the mortgage note have been duly executed and each is the legal, valid and binding obligation of the Company, enforceable in accordance with its terms; the mortgage has been duly acknowledged and recorded and is valid; and the mortgage and the mortgage note are not subject to any right of rescission, set-off, counterclaim or defense, including, without limitation, the defense of usury, and no such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto. The Company is responsible for the guarantees on loans sold. If these claims prove to be untrue, the investor can require the Company to repurchase the loan and return all loan purchase and servicing release premiums. Management does not believe the potential liability exposure will have a material impact on the Company’s results of operations, cash flows or financial condition due to the nature of the standard representations and warranties, which have resulted in a minimal amount of loan repurchases. | |
Prior to 2008, ETBH raised capital through the formation of trusts, which sold trust preferred securities in the capital markets. The capital securities must be redeemed in whole at the due date, which is generally 30 years after issuance. Each trust issued trust preferred securities at par, with a liquidation amount of $1,000 per capital security. The trusts used the proceeds from the sale of issuances to purchase subordinated debentures issued by ETBH. | |
During the 30-year period prior to the redemption of the trust preferred securities, ETBH guarantees the accrued and unpaid distributions on these securities, as well as the redemption price of the securities and certain costs that may be incurred in liquidating, terminating or dissolving the trusts (all of which would otherwise be payable by the trusts). At March 31, 2014, management estimated that the maximum potential liability under this arrangement, including the current carrying value of the trusts, was equal to approximately $436 million or the total face value of these securities plus dividends, which may be unpaid at the termination of the trust arrangement. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||
The Company reports its operating results in two segments, based on the manner in which its chief operating decision maker evaluates financial performance and makes resource allocation decisions: 1) trading and investing; and 2) balance sheet management. Trading and investing includes retail brokerage products and services; investor-focused banking products; and corporate services. Balance sheet management includes the management of asset allocation; loans previously originated by the Company or purchased from third parties; customer payables and deposits; and credit, liquidity and interest rate risk. The balance sheet management segment utilizes customer payables and deposits and compensates the trading and investing segment via a market-based transfer pricing arrangement, which is eliminated in consolidation. | ||||||||||||||||
The Company does not allocate costs associated with certain functions that are centrally-managed to its operating segments. These costs are separately reported in a corporate/other category, along with technology related costs incurred to support centrally-managed functions; restructuring and other exit activities; and corporate debt and corporate investments. | ||||||||||||||||
The Company evaluates the performance of its segments based on the segment’s income (loss) before income taxes. Financial information for the Company’s reportable segments is presented in the following tables (dollars in millions): | ||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
Net operating interest income | $ | 143 | $ | 123 | $ | — | $ | 266 | ||||||||
Total non-interest income | 193 | 16 | — | 209 | ||||||||||||
Total net revenue | 336 | 139 | — | 475 | ||||||||||||
Provision for loan losses | — | 4 | — | 4 | ||||||||||||
Total operating expense | 195 | 41 | 54 | 290 | ||||||||||||
Income (loss) before other income (expense) and income taxes | 141 | 94 | (54 | ) | 181 | |||||||||||
Total other income (expense) | — | — | (37 | ) | (37 | ) | ||||||||||
Income (loss) before income taxes | $ | 141 | $ | 94 | $ | (91 | ) | $ | 144 | |||||||
Income tax expense | 47 | |||||||||||||||
Net income | $ | 97 | ||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
Net operating interest income | $ | 134 | $ | 107 | $ | — | $ | 241 | ||||||||
Total non-interest income | 163 | 16 | — | 179 | ||||||||||||
Total net revenue | 297 | 123 | — | 420 | ||||||||||||
Provision for loan losses | — | 43 | — | 43 | ||||||||||||
Total operating expense | 199 | 50 | 46 | 295 | ||||||||||||
Income (loss) before other income (expense) and income taxes | 98 | 30 | (46 | ) | 82 | |||||||||||
Total other income (expense) | — | — | (25 | ) | (25 | ) | ||||||||||
Income (loss) before income taxes | $ | 98 | $ | 30 | $ | (71 | ) | 57 | ||||||||
Income tax expense | 22 | |||||||||||||||
Net income | $ | 35 | ||||||||||||||
Segment Assets | ||||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
As of March 31, 2014 | $ | 11,613 | $ | 34,404 | $ | 421 | $ | 46,438 | ||||||||
As of December 31, 2013 | $ | 10,820 | $ | 34,784 | $ | 676 | $ | 46,280 | ||||||||
Subsequent_Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENT | ' |
SUBSEQUENT EVENT | |
The sale of $0.8 billion carrying value of one-to-four family loans modified as TDRs closed on April 22, 2014 and the Company recorded a slight gain on the sale which will be recognized in the second quarter of 2014. |
Organization_Basis_of_Presenta1
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization | ' |
Organization—E*TRADE Financial Corporation is a financial services company that provides brokerage and related products and services primarily to individual retail investors under the brand "E*TRADE Financial." The Company also provides investor-focused banking products, primarily sweep deposits and savings products, to retail investors. | |
On February 10, 2014, the Company completed the sale of its subsidiary G1 Execution Services, LLC, a registered broker-dealer and market maker, to an affiliate of Susquehanna. The sale generated cash proceeds of $76 million. | |
Basis of Presentation | ' |
Basis of Presentation—The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries as determined under the voting interest model. Entities in which the Company holds at least a 20% ownership interest or in which there are other indicators of significant influence are generally accounted for by the equity method. Entities in which the Company holds less than a 20% ownership interest and does not have the ability to exercise significant influence are generally carried at cost. Intercompany accounts and transactions are eliminated in consolidation. The Company also evaluates its continuing involvement with certain entities to determine if the Company is required to consolidate the entities under the variable interest entity model. This evaluation is based on a qualitative assessment of whether the Company has both: 1) the power to direct matters that most significantly impact the activities of the variable interest entity; and 2) the obligation to absorb losses or the right to receive benefits of the variable interest entity that could potentially be significant to the variable interest entity. | |
Certain prior period items in these consolidated financial statements have been reclassified to conform to the current period presentation. These consolidated financial statements reflect all adjustments, which are all normal and recurring in nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. | |
At the end of June 2013, the Company decided to exit its market making business, G1 Execution Services, LLC, and reclassified the assets and liabilities of the market making business to held-for-sale. The assets and liabilities of the market making business are presented in the other assets and other liabilities line items, respectively, at December 31, 2013 on the consolidated balance sheet. The sale of the market making business was completed on February 10, 2014. For additional information on the market making business, see Note 2—Disposition. | |
The Company reports corporate interest expense separately from operating interest expense. The Company believes reporting these items separately provides a clearer picture of the financial performance of the Company’s operations than would a presentation that combined these two items. Operating interest expense is generated from the operations of the Company. Corporate debt, which is the primary source of corporate interest expense, has been issued primarily in connection with recapitalization transactions and past acquisitions. | |
Similarly, the Company reports gains on sales of investments, net separately from gains on loans and securities, net. The Company believes reporting these two items separately provides a clearer picture of the financial performance of the Company's operations than would a presentation that combined these two items. Gains on loans and securities, net are the result of activities in the Company’s operations, namely its balance sheet management segment. Gains on sales of investments, net relate to investments of the Company at the corporate level and are not related to the ongoing business of the Company’s operating subsidiaries. Gains on sales of investments, net are reported in the equity in income of investments and other line item on the consolidated statement of income. | |
Use of Estimates | ' |
Use of Estimates—The consolidated financial statements were prepared in accordance with GAAP, which requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes for the periods presented. Actual results could differ from management’s estimates. Certain significant accounting policies are critical because they are based on estimates and assumptions that require complex and subjective judgments by management. Changes in these estimates or assumptions could materially impact the Company’s financial condition and results of operations. Material estimates in which management believes changes could reasonably occur include: allowance for loan losses; valuation of goodwill and other intangible assets; estimates of effective tax rates, deferred taxes and valuation allowance; classification and valuation of certain investments; accounting for derivative instruments; and fair value measurements. | |
Margin receivables (policy) | ' |
Margin Receivables—The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, where the Company is permitted to sell or re-pledge the securities, was approximately $10.3 billion and $9.1 billion at March 31, 2014 and December 31, 2013, respectively. Of this amount, $2.6 billion and $1.9 billion had been pledged or sold in connection with securities loans, bank borrowings and deposits with clearing organizations as of March 31, 2014 and December 31, 2013, respectively. | |
Loans held-for-sale (policy) | ' |
Loans Held-for-Sale—These loans are carried at the lower of cost or estimated fair value, as determined on an aggregate basis, based on the agreed upon purchase price with the third party. Net unrealized gains or losses are recognized in a valuation allowance by charges to income. | |
Nonperforming loans (policy) | ' |
Nonperforming Loans—The Company classifies loans as nonperforming when they are no longer accruing interest, which includes loans that are 90 days and greater past due, TDRs that are on nonaccrual status for all classes of loans and certain junior liens that have a delinquent senior lien. Interest previously accrued, but not collected, is reversed against current income when a loan is placed on nonaccrual status. Interest payments received on nonperforming loans are recognized on a cash basis in operating interest income until it is doubtful that full payment will be collected, at which point payments are applied to principal. The recognition of deferred fees or costs on originated loans and premiums or discounts on purchased loans in operating interest income is discontinued for nonperforming loans. Nonperforming loans, excluding TDRs and certain junior liens that have a delinquent senior lien, return to accrual status when the loan becomes less than 90 days past due. Loans modified as TDRs return to accrual status after six consecutive payments have been made in accordance with the modified terms. All bankruptcy loans remain on nonaccrual status regardless of the payment history. | |
Loan losses are recognized when, based on management's estimates, it is probable that a loss has been incurred. The Company’s charge-off policy for both one- to four-family and home equity loans is to assess the value of the property when the loan has been delinquent for 180 days or it is in bankruptcy, regardless of whether or not the property is in foreclosure, and charge-off the amount of the loan balance in excess of the estimated current value of the underlying property less estimated selling costs. TDR loan modifications are charged-off when certain characteristics of the loan, including CLTV, borrower’s credit and type of modification, cast substantial doubt on the borrower’s ability to repay the loan. Closed-end consumer loans are charged-off when the loan has been delinquent for 120 days or when it is determined that collection is not probable. | |
Real estate owned and repossessed assets (policy) | ' |
Real Estate Owned and Repossessed Assets—Real estate owned and repossessed assets are included in the other assets line item in the consolidated balance sheet. Real estate owned represents real estate acquired through foreclosure and also includes those properties acquired through a deed in lieu of foreclosure or similar legal agreement. Both real estate owned and the repossessed assets are carried at the lower of carrying value or fair value, less estimated selling costs. | |
New accounting and disclosure guidance (policy) | ' |
New Accounting and Disclosure Guidance—Below is the new accounting and disclosure guidance that relates to activities in which the Company is engaged. | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |
In July 2013, the FASB amended the presentation guidance on unrecognized tax benefits. The amended guidance requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except under certain circumstances. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The unrecognized tax benefit should also be presented in the financial statements as a liability if the tax law of the applicable jurisdiction does not require the Company to use, and the Company does not intend to use, the deferred tax asset to settle any additional income taxes. The amended presentation guidance became effective for annual and interim periods beginning on January 1, 2014 for the Company and was applied prospectively to unrecognized tax benefits existing at that date. The adoption of the amended presentation guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. | |
Accounting for Investments in Qualified Affordable Housing Projects | |
In January 2014, the FASB amended the accounting guidance for investments in qualified affordable housing projects. The amended accounting guidance permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the Company would amortize the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the consolidated statement of income (loss) as a component of income tax expense (benefit). The amended guidance will be effective for annual and interim periods beginning on January 1, 2015 for the Company and must be applied retrospectively. Early adoption is permitted. While the Company is currently evaluating the impact of the new accounting guidance, the adoption is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. | |
Reclassification of Residential Real Estate Collateralized Mortgage Loans upon Foreclosure | |
In January 2014, the FASB amended the accounting and disclosure guidance on reclassifications of residential real estate collateralized mortgage loans upon foreclosure. The amended guidance clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amended disclosure guidance requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure. As early adoption was permitted, the Company early adopted the amended guidance as of January 1, 2014. The adoption of the amended accounting guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. | |
Presentation and Disclosure of Discontinued Operations | |
In April 2014, the FASB amended the presentation and disclosure guidance on disposal transactions. The amended guidance raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The amended guidance will be effective for all disposals or classifications as held for sale that occur in annual and interim periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The adoption is not expected to have a material impact on the Company’s current financial condition, results of operations or cash flows; however, it may impact the reporting of future disposals if and when they occur. |
Disposition_Tables
Disposition (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | ' | ||||
The table below summarizes the carrying amounts of the major classes of assets and liabilities of the market making business at December 31, 2013 (dollars in millions): | |||||
December 31, 2013(1) | |||||
Assets: | |||||
Cash and equivalents | $ | 11 | |||
Trading securities | 105 | ||||
Property and equipment, net | 2 | ||||
Other intangibles, net | 21 | ||||
Other assets | 38 | ||||
Total assets | $ | 177 | |||
Liabilities: | |||||
Other liabilities | $ | 107 | |||
Total liabilities | $ | 107 | |||
(1)Assets and liabilities as of December 31, 2013 were classified as held-for-sale and reflected in the other assets and other liabilities line items on the consolidated balance sheet respectively. |
Operating_Interest_Income_and_1
Operating Interest Income and Operating Interest Expense (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Operating Interest Income and Operating Interest Expense Disclosure [Abstract] | ' | |||||||
Schedule Of Components Of Interest Income And Expense Operating Excluding Corporate | ' | |||||||
The following table shows the components of operating interest income and operating interest expense (dollars in millions): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Operating interest income: | ||||||||
Loans | $ | 84 | $ | 107 | ||||
Available-for-sale securities | 79 | 64 | ||||||
Held-to-maturity securities | 77 | 58 | ||||||
Margin receivables | 62 | 54 | ||||||
Securities borrowed and other | 20 | 17 | ||||||
Total operating interest income | 322 | 300 | ||||||
Operating interest expense: | ||||||||
Securities sold under agreements to repurchase | (35 | ) | (37 | ) | ||||
FHLB advances and other borrowings | (17 | ) | (17 | ) | ||||
Deposits | (2 | ) | (3 | ) | ||||
Customer payables and other | (2 | ) | (2 | ) | ||||
Total operating interest expense | (56 | ) | (59 | ) | ||||
Net operating interest income | $ | 266 | $ | 241 | ||||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value Inputs, Assets, Quantitative Information | ' | |||||||||||||||||||
The weighted average coupon rates for the residential mortgage-backed securities at March 31, 2014 are shown in the following table: | ||||||||||||||||||||
Weighted Average | ||||||||||||||||||||
Coupon Rate | ||||||||||||||||||||
Agency mortgage-backed securities | 3.08 | % | ||||||||||||||||||
Agency CMOs | 3.16 | % | ||||||||||||||||||
The following table presents additional information about significant unobservable inputs used in the valuation of assets measured at fair value on a nonrecurring basis that were categorized in Level 3 of the fair value hierarchy at March 31, 2014: | ||||||||||||||||||||
Unobservable Inputs | Average | Range | ||||||||||||||||||
One- to four-family | Appraised value | $ | 334,900 | $19,000-$1,200,000 | ||||||||||||||||
Home equity | Appraised value | $ | 289,600 | $7,000-$1,005,800 | ||||||||||||||||
Real estate owned | Appraised value | $ | 344,600 | $18,300-$900,000 | ||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | ' | |||||||||||||||||||
Assets and liabilities measured at fair value at March 31, 2014 and December 31, 2013 are summarized in the following tables (dollars in millions): | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Fair Value | ||||||||||||||||||||
March 31, 2014: | ||||||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | — | $ | 11,423 | $ | — | $ | 11,423 | ||||||||||||
Investment securities: | ||||||||||||||||||||
Agency debentures | — | 493 | — | 493 | ||||||||||||||||
Agency debt securities | — | 805 | — | 805 | ||||||||||||||||
Municipal bonds | — | 41 | — | 41 | ||||||||||||||||
Corporate bonds | — | 4 | — | 4 | ||||||||||||||||
Total investment securities | — | 1,343 | — | 1,343 | ||||||||||||||||
Total available-for-sale securities | — | 12,766 | — | 12,766 | ||||||||||||||||
Other assets: | ||||||||||||||||||||
Derivative assets(1) | — | 66 | — | 66 | ||||||||||||||||
Deposits with clearing organizations(2) | 85 | — | — | 85 | ||||||||||||||||
Total other assets measured at fair value on a recurring basis | 85 | 66 | — | 151 | ||||||||||||||||
Total assets measured at fair value on a recurring basis(3) | $ | 85 | $ | 12,832 | $ | — | $ | 12,917 | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivative liabilities(1) | $ | — | $ | 144 | $ | — | $ | 144 | ||||||||||||
Total liabilities measured at fair value on a recurring basis(3) | $ | — | $ | 144 | $ | — | $ | 144 | ||||||||||||
Nonrecurring fair value measurements: | ||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||
One- to four-family | $ | — | $ | — | $ | 33 | $ | 33 | ||||||||||||
Home equity | — | — | 12 | 12 | ||||||||||||||||
Total loans receivable | — | — | 45 | 45 | ||||||||||||||||
Real estate owned | — | — | 29 | 29 | ||||||||||||||||
Total assets measured at fair value on a nonrecurring basis(4) | $ | — | $ | — | $ | 74 | $ | 74 | ||||||||||||
-1 | All derivative assets and liabilities were interest rate contracts at March 31, 2014. Information related to derivative instruments is detailed in Note 8—Accounting for Derivative Instruments and Hedging Activities. | |||||||||||||||||||
-2 | Represents U.S. Treasury securities held by a broker-dealer subsidiary. | |||||||||||||||||||
-3 | Assets and liabilities measured at fair value on a recurring basis represented 28% and less than 1% of the Company’s total assets and total liabilities, respectively, at March 31, 2014. | |||||||||||||||||||
-4 | Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at March 31, 2014, and for which a fair value measurement was recorded during the period. | |||||||||||||||||||
Level 1 | Level 2 | Level 3(1) | Total | |||||||||||||||||
Fair Value | ||||||||||||||||||||
December 31, 2013: | ||||||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | — | $ | 12,236 | $ | — | $ | 12,236 | ||||||||||||
Non-agency CMOs | — | — | 14 | 14 | ||||||||||||||||
Total residential mortgage-backed securities | — | 12,236 | 14 | 12,250 | ||||||||||||||||
Investment securities: | ||||||||||||||||||||
Agency debentures | — | 466 | — | 466 | ||||||||||||||||
Agency debt securities | — | 831 | — | 831 | ||||||||||||||||
Municipal bonds | — | 40 | — | 40 | ||||||||||||||||
Corporate bonds | — | 5 | — | 5 | ||||||||||||||||
Total investment securities | — | 1,342 | — | 1,342 | ||||||||||||||||
Total available-for-sale securities | — | 13,578 | 14 | 13,592 | ||||||||||||||||
Other assets: | ||||||||||||||||||||
Derivative assets(2) | — | 107 | — | 107 | ||||||||||||||||
Deposits with clearing organizations(3) | 53 | — | — | 53 | ||||||||||||||||
Held-for-sale assets—trading securities(4) | 104 | 1 | — | 105 | ||||||||||||||||
Total other assets measured at fair value on a recurring basis | 157 | 108 | — | 265 | ||||||||||||||||
Total assets measured at fair value on a recurring basis(5) | $ | 157 | $ | 13,686 | $ | 14 | $ | 13,857 | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivative liabilities(2) | $ | — | $ | 169 | $ | — | $ | 169 | ||||||||||||
Held-for-sale liabilities—securities sold, not yet purchased(4) | 94 | 1 | — | 95 | ||||||||||||||||
Total liabilities measured at fair value on a recurring basis(5) | $ | 94 | $ | 170 | $ | — | $ | 264 | ||||||||||||
Nonrecurring fair value measurements: | ||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||
One- to four-family | $ | — | $ | — | $ | 246 | $ | 246 | ||||||||||||
Home equity | — | — | 46 | 46 | ||||||||||||||||
Total loans receivable(6) | — | — | 292 | 292 | ||||||||||||||||
Real estate owned(6) | — | — | 47 | 47 | ||||||||||||||||
Total assets measured at fair value on a nonrecurring basis(7) | $ | — | $ | — | $ | 339 | $ | 339 | ||||||||||||
-1 | Instruments measured at fair value on a recurring basis categorized as Level 3 represented less than 1% of the Company's total assets and none of its total liabilities at December 31, 2013. | |||||||||||||||||||
-2 | All derivative assets and liabilities were interest rate contracts at December 31, 2013. Information related to derivative instruments is detailed in Note 8—Accounting for Derivative Instruments and Hedging Activities. | |||||||||||||||||||
-3 | Represents U.S. Treasury securities held by a broker-dealer subsidiary. | |||||||||||||||||||
-4 | Assets and liabilities of the market making business were reclassified as held-for-sale and are presented in the other assets and other liabilities line items, respectively, on the consolidated balance sheet at December 31, 2013. Information related to the classification is detailed in Note 2—Disposition. | |||||||||||||||||||
-5 | Assets and liabilities measured at fair value on a recurring basis represented 30% and 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2013. | |||||||||||||||||||
-6 | Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2013, and for which a fair value measurement was recorded during the period. | |||||||||||||||||||
-7 | Goodwill allocated to the market making reporting unit with a carrying amount of $142 million was written down to zero during the year ended December 31, 2013 and categorized in Level 3 of the fair value hierarchy. | |||||||||||||||||||
Gains and Losses, Fair Value Measurements, Nonrecurring | ' | |||||||||||||||||||
The following table presents the gains and losses associated with the assets measured at fair value on a nonrecurring basis during the three months ended March 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
One- to four-family | $ | 5 | $ | 16 | ||||||||||||||||
Home equity | 12 | 19 | ||||||||||||||||||
Total losses on loans receivable measured at fair value | $ | 17 | $ | 35 | ||||||||||||||||
(Gains) losses on real estate owned measured at fair value | $ | (1 | ) | $ | 1 | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | |||||||||||||||||||
The following tables present additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||||
Non-agency CMOs | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Beginning of period | $ | 14 | $ | 49 | ||||||||||||||||
Gains (losses) recognized in earnings(1) | 6 | (1 | ) | |||||||||||||||||
Net gains recognized in other comprehensive income(2) | 3 | 2 | ||||||||||||||||||
Sales | (23 | ) | (35 | ) | ||||||||||||||||
Settlements | — | (1 | ) | |||||||||||||||||
End of period | $ | — | $ | 14 | ||||||||||||||||
-1 | Gains and losses recognized in earnings are reported in the gains on loans and securities, net and net impairment line items on the consolidated statement of income. | |||||||||||||||||||
-2 | Net gains recognized in other comprehensive income are reported in the net change from available-for-sale securities line item. | |||||||||||||||||||
Fair Value, by Balance Sheet Grouping | ' | |||||||||||||||||||
The following table summarizes the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not carried at fair value on the consolidated balance sheet at March 31, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Value | Fair Value | |||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and equivalents | $ | 1,585 | $ | 1,585 | $ | — | $ | — | $ | 1,585 | ||||||||||
Cash required to be segregated under federal or other regulations | $ | 981 | $ | 981 | $ | — | $ | — | $ | 981 | ||||||||||
Held-to-maturity securities: | ||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 9,048 | $ | — | $ | 9,057 | $ | — | $ | 9,057 | ||||||||||
Agency debentures | 163 | — | 167 | — | 167 | |||||||||||||||
Agency debt securities | 2,037 | — | 2,030 | — | 2,030 | |||||||||||||||
Total held-to-maturity securities | $ | 11,248 | $ | — | $ | 11,254 | $ | — | $ | 11,254 | ||||||||||
Margin receivables | $ | 7,346 | $ | — | $ | 7,346 | $ | — | $ | 7,346 | ||||||||||
Loans held-for-sale | $ | 795 | $ | — | $ | 802 | $ | — | $ | 802 | ||||||||||
Loans receivable, net: | ||||||||||||||||||||
One- to four-family | $ | 3,442 | $ | — | $ | — | $ | 2,975 | $ | 2,975 | ||||||||||
Home equity | 2,994 | — | — | 2,726 | 2,726 | |||||||||||||||
Consumer and other | 546 | — | — | 557 | 557 | |||||||||||||||
Total loans receivable, net(1) | $ | 6,982 | $ | — | $ | — | $ | 6,258 | $ | 6,258 | ||||||||||
Investment in FHLB stock | $ | 56 | $ | — | $ | — | $ | 56 | $ | 56 | ||||||||||
Deposits paid for securities borrowed | $ | 487 | $ | — | $ | 487 | $ | — | $ | 487 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits | $ | 25,749 | $ | — | $ | 25,749 | $ | — | $ | 25,749 | ||||||||||
Securities sold under agreements to repurchase | $ | 4,345 | $ | — | $ | 4,360 | $ | — | $ | 4,360 | ||||||||||
Customer payables | $ | 6,260 | $ | — | $ | 6,260 | $ | — | $ | 6,260 | ||||||||||
FHLB advances and other borrowings | $ | 1,287 | $ | — | $ | 927 | $ | 248 | $ | 1,175 | ||||||||||
Corporate debt | $ | 1,769 | $ | — | $ | 1,965 | $ | — | $ | 1,965 | ||||||||||
Deposits received for securities loaned | $ | 1,608 | $ | — | $ | 1,608 | $ | — | $ | 1,608 | ||||||||||
-1 | The carrying value of loans receivable, net includes the allowance for loan losses of $403 million and loans that are valued at fair value on a nonrecurring basis at March 31, 2014. | |||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Value | Fair Value | |||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and equivalents | $ | 1,838 | $ | 1,838 | $ | — | $ | — | $ | 1,838 | ||||||||||
Cash required to be segregated under federal or other regulations | $ | 1,066 | $ | 1,066 | $ | — | $ | — | $ | 1,066 | ||||||||||
Held-to-maturity securities: | ||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 8,359 | $ | — | $ | 8,293 | $ | — | $ | 8,293 | ||||||||||
Agency debentures | 164 | — | 168 | — | 168 | |||||||||||||||
Agency debt securities | 1,658 | — | 1,631 | — | 1,631 | |||||||||||||||
Total held-to-maturity securities | $ | 10,181 | $ | — | $ | 10,092 | $ | — | $ | 10,092 | ||||||||||
Margin receivables | $ | 6,353 | $ | — | $ | 6,353 | $ | — | $ | 6,353 | ||||||||||
Loans receivable, net: | ||||||||||||||||||||
One- to four-family | $ | 4,392 | $ | — | $ | — | $ | 3,790 | $ | 3,790 | ||||||||||
Home equity | 3,148 | — | — | 2,822 | 2,822 | |||||||||||||||
Consumer and other | 583 | — | — | 596 | 596 | |||||||||||||||
Total loans receivable, net(1) | $ | 8,123 | $ | — | $ | — | $ | 7,208 | $ | 7,208 | ||||||||||
Investment in FHLB stock | $ | 61 | $ | — | $ | — | $ | 61 | $ | 61 | ||||||||||
Deposits paid for securities borrowed | $ | 536 | $ | — | $ | 536 | $ | — | $ | 536 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits | $ | 25,971 | $ | — | $ | 25,971 | $ | — | $ | 25,971 | ||||||||||
Securities sold under agreements to repurchase | $ | 4,543 | $ | — | $ | 4,571 | $ | — | $ | 4,571 | ||||||||||
Customer payables | $ | 6,310 | $ | — | $ | 6,310 | $ | — | $ | 6,310 | ||||||||||
FHLB advances and other borrowings | $ | 1,279 | $ | — | $ | 924 | $ | 225 | $ | 1,149 | ||||||||||
Corporate debt | $ | 1,768 | $ | — | $ | 1,951 | $ | — | $ | 1,951 | ||||||||||
Deposits received for securities loaned | $ | 1,050 | $ | — | $ | 1,050 | $ | — | $ | 1,050 | ||||||||||
-1 | The carrying value of loans receivable, net includes the allowance for loan losses of $453 million and loans that are valued at fair value on a nonrecurring basis at December 31, 2013. |
Offsetting_Assets_and_Liabilit1
Offsetting Assets and Liabilities (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
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 financial statements to evaluate the potential effect of rights of setoff between these recognized assets and recognized liabilities at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheet | |||||||||||||||||||||||||||
Gross Amounts of Recognized Assets and Liabilities | Gross Amounts Offset in the Consolidated Balance Sheet | Net Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Collateral Received or Pledged (Including Cash) | Net Amount | ||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Deposits paid for securities borrowed (1)(5) | $ | 487 | $ | — | $ | 487 | $ | (306 | ) | $ | (171 | ) | $ | 10 | |||||||||||||
Derivative assets (1)(3) | 62 | — | 62 | (35 | ) | (13 | ) | 14 | |||||||||||||||||||
Total | $ | 549 | $ | — | $ | 549 | $ | (341 | ) | $ | (184 | ) | $ | 24 | |||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Repurchase agreements (4) | $ | 4,345 | $ | — | $ | 4,345 | $ | — | $ | (4,342 | ) | $ | 3 | ||||||||||||||
Deposits received for securities loaned (2)(6) | 1,608 | — | 1,608 | (306 | ) | (1,195 | ) | 107 | |||||||||||||||||||
Derivative liabilities (2)(3) | 139 | — | 139 | (35 | ) | (104 | ) | — | |||||||||||||||||||
Total | $ | 6,092 | $ | — | $ | 6,092 | $ | (341 | ) | $ | (5,641 | ) | $ | 110 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Deposits paid for securities borrowed (1)(5) | $ | 536 | $ | — | $ | 536 | $ | (247 | ) | $ | (282 | ) | $ | 7 | |||||||||||||
Derivative assets (1)(3) | 92 | — | 92 | (48 | ) | (12 | ) | 32 | |||||||||||||||||||
Total | $ | 628 | $ | — | $ | 628 | $ | (295 | ) | $ | (294 | ) | $ | 39 | |||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Repurchase agreements (4) | $ | 4,543 | $ | — | $ | 4,543 | $ | — | $ | (4,537 | ) | $ | 6 | ||||||||||||||
Deposits received for securities loaned (2)(6) | 1,050 | — | 1,050 | (247 | ) | (740 | ) | 63 | |||||||||||||||||||
Derivative liabilities (2)(3) | 168 | — | 168 | (48 | ) | (120 | ) | — | |||||||||||||||||||
Total | $ | 5,761 | $ | — | $ | 5,761 | $ | (295 | ) | $ | (5,397 | ) | $ | 69 | |||||||||||||
-1 | Net amounts presented in the consolidated balance sheet are reflected in the other assets line item. | ||||||||||||||||||||||||||
-2 | Net amounts presented in the consolidated balance sheet are reflected in the other liabilities line item. | ||||||||||||||||||||||||||
-3 | Excludes net accrued interest payable of $17 million and $19 million at March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||
-4 | The Company pledges available-for-sale and held-to-maturity securities as collateral for amounts due on repurchase agreements and derivative liabilities. The collateral pledged included available-for-sale securities at fair value and held-to-maturity securities at amortized cost for both March 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||||
-5 | Included in the gross amounts of deposits paid for securities borrowed is $311 million and $415 million at March 31, 2014 and December 31, 2013, 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 original counterparties to the Company’s master securities loan agreements. | ||||||||||||||||||||||||||
-6 | Included in the gross amounts of deposits received for securities loaned is $1.0 billion and $682 million at March 31, 2014 and December 31, 2013, 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 original counterparties to the Company’s master securities loan agreements. |
AvailableforSale_and_HeldtoMat1
Available-for-Sale and Held-to-Maturity Securities (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Investments Securities | ' | |||||||||||||||||||||||
The amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31, 2014 and December 31, 2013 are shown in the following tables (dollars in millions): | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||||||
Cost | Unrealized / | Unrealized / | ||||||||||||||||||||||
Unrecognized | Unrecognized | |||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
March 31, 2014: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 11,584 | $ | 81 | $ | (242 | ) | $ | 11,423 | |||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debentures | 522 | 5 | (34 | ) | 493 | |||||||||||||||||||
Agency debt securities | 798 | 12 | (5 | ) | 805 | |||||||||||||||||||
Municipal bonds | 41 | 1 | (1 | ) | 41 | |||||||||||||||||||
Corporate bonds | 5 | — | (1 | ) | 4 | |||||||||||||||||||
Total investment securities | 1,366 | 18 | (41 | ) | 1,343 | |||||||||||||||||||
Total available-for-sale securities | $ | 12,950 | $ | 99 | $ | (283 | ) | $ | 12,766 | |||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 9,048 | $ | 119 | $ | (110 | ) | $ | 9,057 | |||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debentures | 163 | 4 | — | 167 | ||||||||||||||||||||
Agency debt securities | 2,037 | 22 | (29 | ) | 2,030 | |||||||||||||||||||
Total investment securities | 2,200 | 26 | (29 | ) | 2,197 | |||||||||||||||||||
Total held-to-maturity securities | $ | 11,248 | $ | 145 | $ | (139 | ) | $ | 11,254 | |||||||||||||||
December 31, 2013: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 12,505 | $ | 66 | $ | (335 | ) | $ | 12,236 | |||||||||||||||
Non-agency CMOs | 17 | 2 | (5 | ) | 14 | |||||||||||||||||||
Total residential mortgage-backed securities | 12,522 | 68 | (340 | ) | 12,250 | |||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debentures | 520 | — | (54 | ) | 466 | |||||||||||||||||||
Agency debt securities | 832 | 8 | (9 | ) | 831 | |||||||||||||||||||
Municipal bonds | 42 | — | (2 | ) | 40 | |||||||||||||||||||
Corporate bonds | 6 | — | (1 | ) | 5 | |||||||||||||||||||
Total investment securities | 1,400 | 8 | (66 | ) | 1,342 | |||||||||||||||||||
Total available-for-sale securities | $ | 13,922 | $ | 76 | $ | (406 | ) | $ | 13,592 | |||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 8,359 | $ | 99 | $ | (165 | ) | $ | 8,293 | |||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debentures | 164 | 4 | — | 168 | ||||||||||||||||||||
Agency debt securities | 1,658 | 13 | (40 | ) | 1,631 | |||||||||||||||||||
Total investment securities | 1,822 | 17 | (40 | ) | 1,799 | |||||||||||||||||||
Total held-to-maturity securities | $ | 10,181 | $ | 116 | $ | (205 | ) | $ | 10,092 | |||||||||||||||
Investments Classified by Contractual Maturity Date | ' | |||||||||||||||||||||||
The contractual maturities of all available-for-sale and held-to-maturity debt securities at March 31, 2014 are shown below (dollars in millions): | ||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Due within one to five years | $ | 58 | $ | 58 | ||||||||||||||||||||
Due within five to ten years | 1,031 | 1,020 | ||||||||||||||||||||||
Due after ten years | 11,861 | 11,688 | ||||||||||||||||||||||
Total available-for-sale securities | $ | 12,950 | $ | 12,766 | ||||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Due within one to five years | $ | 964 | $ | 995 | ||||||||||||||||||||
Due within five to ten years | 2,589 | 2,624 | ||||||||||||||||||||||
Due after ten years | 7,695 | 7,635 | ||||||||||||||||||||||
Total held-to-maturity securities | $ | 11,248 | $ | 11,254 | ||||||||||||||||||||
Schedule of Unrealized Loss on Investments | ' | |||||||||||||||||||||||
The following tables show the fair value and unrealized or unrecognized losses on available-for-sale and held-to-maturity securities, aggregated by investment category, and the length of time that individual securities have been in a continuous unrealized or unrecognized loss position at March 31, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value | Unrealized / | Fair Value | Unrealized / | Fair Value | Unrealized / | |||||||||||||||||||
Unrecognized | Unrecognized | Unrecognized | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
March 31, 2014: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 3,559 | $ | (104 | ) | $ | 2,679 | $ | (138 | ) | $ | 6,238 | $ | (242 | ) | |||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debentures | 245 | (25 | ) | 78 | (9 | ) | 323 | (34 | ) | |||||||||||||||
Agency debt securities | 5 | — | 160 | (5 | ) | 165 | (5 | ) | ||||||||||||||||
Municipal bonds | 18 | (1 | ) | — | — | 18 | (1 | ) | ||||||||||||||||
Corporate bonds | — | — | 5 | (1 | ) | 5 | (1 | ) | ||||||||||||||||
Total temporarily impaired available-for-sale securities | $ | 3,827 | $ | (130 | ) | $ | 2,922 | $ | (153 | ) | $ | 6,749 | $ | (283 | ) | |||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 3,213 | $ | (56 | ) | $ | 1,512 | $ | (54 | ) | $ | 4,725 | $ | (110 | ) | |||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debt securities | 645 | (19 | ) | 310 | (10 | ) | 955 | (29 | ) | |||||||||||||||
Total temporarily impaired held-to-maturity securities | $ | 3,858 | $ | (75 | ) | $ | 1,822 | $ | (64 | ) | $ | 5,680 | $ | (139 | ) | |||||||||
December 31, 2013: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 6,422 | $ | (268 | ) | $ | 1,266 | $ | (67 | ) | $ | 7,688 | $ | (335 | ) | |||||||||
Non-agency CMOs | — | — | 11 | (5 | ) | 11 | (5 | ) | ||||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debentures | 466 | (54 | ) | — | — | 466 | (54 | ) | ||||||||||||||||
Agency debt securities | 384 | (9 | ) | — | — | 384 | (9 | ) | ||||||||||||||||
Municipal bonds | 27 | (2 | ) | — | — | 27 | (2 | ) | ||||||||||||||||
Corporate bonds | — | — | 5 | (1 | ) | 5 | (1 | ) | ||||||||||||||||
Total temporarily impaired available-for-sale securities | $ | 7,299 | $ | (333 | ) | $ | 1,282 | $ | (73 | ) | $ | 8,581 | $ | (406 | ) | |||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 3,607 | $ | (121 | ) | $ | 891 | $ | (44 | ) | $ | 4,498 | $ | (165 | ) | |||||||||
Investment securities: | ||||||||||||||||||||||||
Agency debt securities | 1,153 | (40 | ) | — | — | 1,153 | (40 | ) | ||||||||||||||||
Total temporarily impaired held-to-maturity securities | $ | 4,760 | $ | (161 | ) | $ | 891 | $ | (44 | ) | $ | 5,651 | $ | (205 | ) | |||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings | ' | |||||||||||||||||||||||
The following table presents a roll forward for the three months ended March 31, 2014 and 2013 of the credit loss component on debt securities held by the Company that had a noncredit loss recognized in other comprehensive income and had a credit loss recognized in earnings (dollars in millions): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Credit loss balance, beginning of period | $ | 166 | $ | 187 | ||||||||||||||||||||
Additions: | ||||||||||||||||||||||||
Subsequent credit impairment | — | 1 | ||||||||||||||||||||||
Securities sold | (14 | ) | (23 | ) | ||||||||||||||||||||
Credit loss balance, end of period (1) | $ | 152 | $ | 165 | ||||||||||||||||||||
-1 | The credit loss balance at March 31, 2014 and 2013 included $121 million and $114 million, respectively, of credit losses associated with debt securities that have been factored to zero, but the Company still holds legal title to these securities until maturity or until they are sold. | |||||||||||||||||||||||
Gains on Loans and Investments | ' | |||||||||||||||||||||||
The detailed components of the gains on loans and securities, net line item on the consolidated statement of income for the three months ended March 31, 2014 and 2013 are as follows (dollars in millions): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Gains on available-for-sale securities | $ | 19 | $ | 24 | ||||||||||||||||||||
Losses on available-for-sale securities | — | (8 | ) | |||||||||||||||||||||
Hedge ineffectiveness | (4 | ) | — | |||||||||||||||||||||
Gains on loans and securities, net | $ | 15 | $ | 16 | ||||||||||||||||||||
Loans_Receivable_Net_Tables
Loans Receivable, Net (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Total Loans Receivable, Net [Table Text Block] | ' | ||||||||||||||||||||||||||
Loans receivable, net at March 31, 2014 and December 31, 2013 are summarized as follows (dollars in millions): | |||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||
One- to four-family | $ | 3,479 | $ | 4,475 | |||||||||||||||||||||||
Home equity | 3,304 | 3,454 | |||||||||||||||||||||||||
Consumer and other | 565 | 602 | |||||||||||||||||||||||||
Total loans receivable | 7,348 | 8,531 | |||||||||||||||||||||||||
Unamortized premiums, net | 37 | 45 | |||||||||||||||||||||||||
Allowance for loan losses | (403 | ) | (453 | ) | |||||||||||||||||||||||
Total loans receivable, net | $ | 6,982 | $ | 8,123 | |||||||||||||||||||||||
The following table represents the breakdown of the total recorded investment in loans receivable and allowance for loan losses by loans that have been collectively evaluated for impairment and those that have been individually evaluated for impairment at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
Recorded Investment | Allowance for Loan | ||||||||||||||||||||||||||
Losses | |||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||
Loans collectively evaluated for impairment | $ | 6,832 | $ | 7,163 | $ | 328 | $ | 329 | |||||||||||||||||||
Loans individually evaluated for impairment (TDRs) | 553 | 1,413 | 75 | 124 | |||||||||||||||||||||||
Total | $ | 7,385 | $ | 8,576 | $ | 403 | $ | 453 | |||||||||||||||||||
Credit Quality Indicators for Loan Portfolio | ' | ||||||||||||||||||||||||||
The following tables show the distribution of the Company’s mortgage loan portfolios by credit quality indicator at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
One- to Four-Family | Home Equity | ||||||||||||||||||||||||||
Current LTV/CLTV (1) | 31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||
<€% | $ | 1,711 | $ | 1,912 | $ | 1,122 | $ | 1,142 | |||||||||||||||||||
80%-100% | 1,014 | 1,365 | 829 | 866 | |||||||||||||||||||||||
100%-120% | 453 | 711 | 704 | 736 | |||||||||||||||||||||||
>120% | 301 | 487 | 649 | 710 | |||||||||||||||||||||||
Total mortgage loans receivable | $ | 3,479 | $ | 4,475 | $ | 3,304 | $ | 3,454 | |||||||||||||||||||
Average estimated current LTV/CLTV (2) | 84 | % | 90 | % | 97 | % | 98 | % | |||||||||||||||||||
Average LTV/CLTV at loan origination (3) | 71 | % | 72 | % | 80 | % | 80 | % | |||||||||||||||||||
-1 | Current CLTV calculations for home equity loans are based on the maximum available line for home equity lines of credit and outstanding principal balance for home equity installment loans. Current property values are updated on a quarterly basis using the most recent property value data available to the Company. For properties in which the Company did not have an updated valuation, home price indices were utilized to estimate the current property value. | ||||||||||||||||||||||||||
-2 | The average estimated current LTV/CLTV ratio reflects the outstanding balance at the balance sheet date and the maximum available line for home equity lines of credit, divided by the estimated current value of the underlying property. | ||||||||||||||||||||||||||
-3 | Average LTV/CLTV at loan origination calculations are based on LTV/CLTV at time of purchase for one- to four-family purchased loans and undrawn balances for home equity loans. | ||||||||||||||||||||||||||
One- to Four-Family | Home Equity | ||||||||||||||||||||||||||
Documentation Type | 31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||
Full documentation | $ | 1,549 | $ | 1,847 | $ | 1,693 | $ | 1,769 | |||||||||||||||||||
Low/no documentation | 1,930 | 2,628 | 1,611 | 1,685 | |||||||||||||||||||||||
Total mortgage loans receivable | $ | 3,479 | $ | 4,475 | $ | 3,304 | $ | 3,454 | |||||||||||||||||||
One- to Four-Family | Home Equity | ||||||||||||||||||||||||||
Current FICO (1) | 31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||
>r0 | $ | 2,006 | $ | 2,252 | $ | 1,740 | $ | 1,811 | |||||||||||||||||||
719 - 700 | 326 | 436 | 327 | 343 | |||||||||||||||||||||||
699 - 680 | 280 | 366 | 278 | 293 | |||||||||||||||||||||||
679 - 660 | 212 | 296 | 220 | 245 | |||||||||||||||||||||||
659 - 620 | 266 | 404 | 298 | 310 | |||||||||||||||||||||||
<620 | 389 | 721 | 441 | 452 | |||||||||||||||||||||||
Total mortgage loans receivable | $ | 3,479 | $ | 4,475 | $ | 3,304 | $ | 3,454 | |||||||||||||||||||
-1 | FICO scores are updated on a quarterly basis; however, at March 31, 2014 and December 31, 2013, there were some loans for which the updated FICO scores were not available. The current FICO distribution at March 31, 2014 included original FICO scores for approximately $79 million and $4 million of one- to four-family and home equity loans, respectively. The current FICO distribution at December 31, 2013 included original FICO scores for approximately $95 million and $10 million of one- to four-family and home equity loans, respectively. | ||||||||||||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||||||||||||
The following table outlines when one- to four-family and home equity lines of credit convert to amortizing by percentage of the one- to four-family portfolio and home equity line of credit portfolios, respectively, at March 31, 2014: | |||||||||||||||||||||||||||
Period of Conversion to Amortizing Loan | % of One-to Four-Family Portfolio | % of Home Equity Line of | |||||||||||||||||||||||||
Credit Portfolio | |||||||||||||||||||||||||||
Already amortizing | 57% | 12% | |||||||||||||||||||||||||
Through December 31, 2014 | 1% | 6% | |||||||||||||||||||||||||
Year ending December 31, 2015 | 5% | 27% | |||||||||||||||||||||||||
Year ending December 31, 2016 | 16% | 42% | |||||||||||||||||||||||||
Year ending December 31, 2017 | 21% | 13% | |||||||||||||||||||||||||
Loans Delinquency | ' | ||||||||||||||||||||||||||
The following table shows total loans receivable by delinquency category at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
Current | 30-89 Days | 90-179 Days | 180+ Days | Total | |||||||||||||||||||||||
Delinquent | Delinquent | Delinquent | |||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||
One- to four-family | $ | 3,180 | $ | 123 | $ | 27 | $ | 149 | $ | 3,479 | |||||||||||||||||
Home equity | 3,163 | 62 | 38 | 41 | 3,304 | ||||||||||||||||||||||
Consumer and other | 553 | 10 | 2 | — | 565 | ||||||||||||||||||||||
Total loans receivable | $ | 6,896 | $ | 195 | $ | 67 | $ | 190 | $ | 7,348 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
One- to four-family | $ | 3,988 | $ | 190 | $ | 70 | $ | 227 | $ | 4,475 | |||||||||||||||||
Home equity | 3,309 | 69 | 36 | 40 | 3,454 | ||||||||||||||||||||||
Consumer and other | 587 | 12 | 3 | — | 602 | ||||||||||||||||||||||
Total loans receivable | $ | 7,884 | $ | 271 | $ | 109 | $ | 267 | $ | 8,531 | |||||||||||||||||
The following table shows the comparative data for nonaccrual loans (dollars in millions): | |||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||
One- to four-family | 316 | 526 | |||||||||||||||||||||||||
Home equity | 195 | 164 | |||||||||||||||||||||||||
Consumer and other | 2 | 3 | |||||||||||||||||||||||||
Total nonperforming loans receivable | 513 | 693 | |||||||||||||||||||||||||
Allowance for Loan Losses Rollforward | ' | ||||||||||||||||||||||||||
The following table provides a roll forward by loan portfolio of the allowance for loan losses for the three months ended March 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||
One- to | Home | Consumer | Total | ||||||||||||||||||||||||
Four-Family | Equity | and Other | |||||||||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 102 | $ | 326 | $ | 25 | $ | 453 | |||||||||||||||||||
Provision for loan losses | (18 | ) | 20 | 2 | 4 | ||||||||||||||||||||||
Charge-offs | (43 | ) | (24 | ) | (5 | ) | (72 | ) | |||||||||||||||||||
Recoveries | 11 | 5 | 2 | 18 | |||||||||||||||||||||||
Charge-offs, net | (32 | ) | (19 | ) | (3 | ) | (54 | ) | |||||||||||||||||||
Allowance for loan losses, end of period | $ | 52 | $ | 327 | $ | 24 | $ | 403 | |||||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||
One- to | Home | Consumer | Total | ||||||||||||||||||||||||
Four-Family | Equity | and Other | |||||||||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 184 | $ | 257 | $ | 40 | $ | 481 | |||||||||||||||||||
Provision for loan losses | (16 | ) | 55 | 4 | 43 | ||||||||||||||||||||||
Charge-offs | (19 | ) | (57 | ) | (17 | ) | (93 | ) | |||||||||||||||||||
Recoveries | 12 | 8 | 4 | 24 | |||||||||||||||||||||||
Charge-offs, net | (7 | ) | (49 | ) | (13 | ) | (69 | ) | |||||||||||||||||||
Allowance for loan losses, end of period | $ | 161 | $ | 263 | $ | 31 | $ | 455 | |||||||||||||||||||
Impaired Financing Receivables | ' | ||||||||||||||||||||||||||
The following table shows the average recorded investment and interest income recognized both on a cash and accrual basis for the Company’s TDRs during the years ended March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
One- to four-family | $ | 1,154 | $ | 1,221 | $ | 8 | $ | 8 | |||||||||||||||||||
Home equity | 237 | 281 | 4 | 5 | |||||||||||||||||||||||
Total | $ | 1,391 | $ | 1,502 | $ | 12 | $ | 13 | |||||||||||||||||||
The following table shows detailed information related to the Company’s TDRs at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Recorded | Specific | Net Investment | Recorded | Specific | Net Investment | ||||||||||||||||||||||
Investment | Valuation | in TDRs | Investment | Valuation | in TDRs | ||||||||||||||||||||||
in TDRs | Allowance | in TDRs | Allowance | ||||||||||||||||||||||||
With a recorded allowance: | |||||||||||||||||||||||||||
One- to four-family | $ | 97 | $ | 15 | $ | 82 | $ | 403 | $ | 60 | $ | 343 | |||||||||||||||
Home equity | $ | 135 | $ | 60 | $ | 75 | $ | 140 | $ | 64 | $ | 76 | |||||||||||||||
Without a recorded allowance:(1) | |||||||||||||||||||||||||||
One- to four-family | $ | 224 | $ | — | $ | 224 | $ | 769 | $ | — | $ | 769 | |||||||||||||||
Home equity | $ | 97 | $ | — | $ | 97 | $ | 101 | $ | — | $ | 101 | |||||||||||||||
Total: | |||||||||||||||||||||||||||
One- to four-family | $ | 321 | $ | 15 | $ | 306 | $ | 1,172 | $ | 60 | $ | 1,112 | |||||||||||||||
Home equity | $ | 232 | $ | 60 | $ | 172 | $ | 241 | $ | 64 | $ | 177 | |||||||||||||||
-1 | Represents loans where the discounted cash flow analysis or collateral value is equal to or exceeds the recorded investment in the loan. | ||||||||||||||||||||||||||
The following table shows a summary of the Company’s recorded investment in TDRs that were on accrual and nonaccrual status, in addition to the recorded investment of TDRs at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
Nonaccrual TDRs | |||||||||||||||||||||||||||
Accrual TDRs(1) | Current(2) | 30-89 Days | 90+ Days | Recorded | |||||||||||||||||||||||
Delinquent | Delinquent | Investment in TDRs | |||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||
One- to four-family | $ | 125 | $ | 119 | $ | 21 | $ | 56 | $ | 321 | |||||||||||||||||
Home equity | 132 | 57 | 15 | 28 | 232 | ||||||||||||||||||||||
Total | $ | 257 | $ | 176 | $ | 36 | $ | 84 | $ | 553 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
One- to four-family | $ | 774 | $ | 127 | $ | 102 | $ | 169 | $ | 1,172 | |||||||||||||||||
Home equity | 176 | 22 | 17 | 26 | 241 | ||||||||||||||||||||||
Total | $ | 950 | $ | 149 | $ | 119 | $ | 195 | $ | 1,413 | |||||||||||||||||
-1 | Represents loans modified as TDRs that are current and have made six or more consecutive payments. | ||||||||||||||||||||||||||
-2 | Represents loans modified as TDRs that are current but have not yet made six consecutive payments and certain junior lien TDRs that have a delinquent senior lien. | ||||||||||||||||||||||||||
Troubled Debt Restructurings - Modifications | ' | ||||||||||||||||||||||||||
The following table shows the loans modified as TDRs by delinquency category at March 31, 2014 and December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||||
Modifications | Modifications | Modifications | Modifications | Recorded | |||||||||||||||||||||||
Current | 30-89 Days | 90-179 Days | 180+ Days | Investment in | |||||||||||||||||||||||
Delinquent | Delinquent | Delinquent | Modifications | ||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||
One- to four-family | $ | 161 | $ | 12 | $ | 4 | $ | 8 | $ | 185 | |||||||||||||||||
Home equity | 155 | 12 | 6 | 9 | 182 | ||||||||||||||||||||||
Total | $ | 316 | $ | 24 | $ | 10 | $ | 17 | $ | 367 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
One- to four-family | $ | 817 | $ | 92 | $ | 39 | $ | 88 | $ | 1,036 | |||||||||||||||||
Home equity | 162 | 13 | 4 | 9 | 188 | ||||||||||||||||||||||
Total | $ | 979 | $ | 105 | $ | 43 | $ | 97 | $ | 1,224 | |||||||||||||||||
The following table shows the recorded investment in modifications that experienced a payment default within 12 months after the modification for the three months ended March 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||
Loans | Investment | Loans | Investment | ||||||||||||||||||||||||
One- to four-family(1) | 18 | $ | 7 | 54 | $ | 19 | |||||||||||||||||||||
Home equity(2) | 8 | — | 24 | 1 | |||||||||||||||||||||||
Total | 26 | $ | 7 | 78 | $ | 20 | |||||||||||||||||||||
-1 | For the three months ended March 31, 2014 and 2013, $2 million and $3 million, respectively, of the recorded investment in one- to four-family loans that had a payment default in the trailing 12 months were classified as current. | ||||||||||||||||||||||||||
-2 | For both the three months ended March 31, 2014 and 2013, less than $1 million of the recorded investment in home equity loans that had a payment default in the trailing 12 months were classified as current. | ||||||||||||||||||||||||||
The following tables provide the number of loans, post-modification balances immediately after being modified by major class, and the financial impact of modifications during the three months ended March 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||
Interest Rate Reduction | |||||||||||||||||||||||||||
Number of | Principal | Principal | Re-age/Extension/ | Other with Interest | Other | Total | |||||||||||||||||||||
Loans | Forgiven | Deferred | Interest Capitalization | Rate Reduction | |||||||||||||||||||||||
One- to four-family | 33 | $ | 1 | $ | — | $ | 4 | $ | 2 | $ | 4 | $ | 11 | ||||||||||||||
Home equity | 46 | — | — | 2 | 1 | 1 | 4 | ||||||||||||||||||||
Total | 79 | $ | 1 | $ | — | $ | 6 | $ | 3 | $ | 5 | $ | 15 | ||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||
Interest Rate Reduction | |||||||||||||||||||||||||||
Number of | Principal | Principal | Re-age/ | Other with | Other | Total | |||||||||||||||||||||
Loans | Forgiven | Deferred | Extension/ | Interest Rate | |||||||||||||||||||||||
Interest | Reduction | ||||||||||||||||||||||||||
Capitalization | |||||||||||||||||||||||||||
One- to four-family | 93 | $ | 8 | $ | 2 | $ | 20 | $ | 1 | $ | 5 | $ | 36 | ||||||||||||||
Home equity | 66 | — | — | 1 | 3 | 1 | 5 | ||||||||||||||||||||
Total | 159 | $ | 8 | $ | 2 | $ | 21 | $ | 4 | $ | 6 | $ | 41 | ||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
Financial Impact | Financial Impact | ||||||||||||||||||||||||||
Principal | Pre-Modification | Post-Modification | Principal | Pre-Modification Weighted Average | Post-Modification | ||||||||||||||||||||||
Forgiven | Weighted Average Interest Rate | Weighted Average Interest Rate | Forgiven | Interest Rate | Weighted Average Interest Rate | ||||||||||||||||||||||
One- to four-family | $ | — | 4.8 | % | 2.7 | % | $ | 3 | 5.2 | % | 2.3 | % | |||||||||||||||
Home equity | — | 4.3 | % | 2 | % | — | 4.5 | % | 1.3 | % | |||||||||||||||||
Total | $ | — | $ | 3 | |||||||||||||||||||||||
Accounting_for_Derivative_Inst1
Accounting for Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | |||||||||||||||||||||||
Schedule of Fair Value Amounts of Derivatives Designated as Hedging Instruments | ' | |||||||||||||||||||||||
The following table summarizes the fair value amounts of derivatives designated as hedging instruments reported in the consolidated balance sheet at March 31, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
Notional | Asset(1) | Liability(2) | Net(3) | |||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Pay-fixed rate swaps | $ | 2,025 | $ | 13 | $ | (139 | ) | $ | (126 | ) | ||||||||||||||
Purchased options | 825 | 7 | — | 7 | ||||||||||||||||||||
Total cash flow hedges | 2,850 | 20 | (139 | ) | (119 | ) | ||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||
Pay-fixed rate swaps | 1,313 | 46 | (5 | ) | 41 | |||||||||||||||||||
Total derivatives designated as hedging instruments(4) | $ | 4,163 | $ | 66 | $ | (144 | ) | $ | (78 | ) | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Pay-fixed rate swaps | $ | 2,480 | $ | 19 | $ | (168 | ) | $ | (149 | ) | ||||||||||||||
Purchased options | 825 | 8 | — | 8 | ||||||||||||||||||||
Total cash flow hedges | 3,305 | 27 | (168 | ) | (141 | ) | ||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||
Pay-fixed rate swaps | 1,614 | 80 | (1 | ) | 79 | |||||||||||||||||||
Total derivatives designated as hedging instruments(4) | $ | 4,919 | $ | 107 | $ | (169 | ) | $ | (62 | ) | ||||||||||||||
-1 | Reflected in the other assets line item on the consolidated balance sheet. | |||||||||||||||||||||||
-2 | Reflected in the other liabilities line item on the consolidated balance sheet. | |||||||||||||||||||||||
-3 | Represents derivative assets net of derivative liabilities for disclosure purposes only. | |||||||||||||||||||||||
-4 | All derivatives were designated as hedging instruments at March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
The following table summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in cash flow hedges on accumulated other comprehensive loss and on the consolidated statement of income for the three months ended March 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2014(1) | 2013(1) | |||||||||||||||||||||||
Gains (losses) on derivatives recognized in OCI (effective portion), net of tax | $ | (16 | ) | $ | 6 | |||||||||||||||||||
Losses reclassified from AOCI into earnings (effective portion), net of tax | $ | (21 | ) | $ | (20 | ) | ||||||||||||||||||
-1 | The Company had cash flow hedge ineffectiveness gains of less than $1 million at both the three months ended March 31, 2014 and 2013, which are reflected in the gains on loans and securities, net line item on the consolidated statement of income. | |||||||||||||||||||||||
Cash Flow Hedging [Member] | ' | |||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | |||||||||||||||||||||||
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
The following table shows the balance in accumulated other comprehensive loss attributable to active and discontinued cash flow hedges at March 31, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Accumulated other comprehensive loss balance (net of tax) related to: | ||||||||||||||||||||||||
Discontinued cash flow hedges | $ | (196 | ) | $ | (201 | ) | ||||||||||||||||||
Active cash flow hedges | (97 | ) | (97 | ) | ||||||||||||||||||||
Total cash flow hedges | $ | (293 | ) | $ | (298 | ) | ||||||||||||||||||
The following table shows the balance in accumulated other comprehensive loss attributable to cash flow hedges by type of hedged item at March 31, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Repurchase agreements | $ | (376 | ) | $ | (379 | ) | ||||||||||||||||||
FHLB advances | (94 | ) | (99 | ) | ||||||||||||||||||||
Total balance of cash flow hedges, before tax | (470 | ) | (478 | ) | ||||||||||||||||||||
Tax benefit | 177 | 180 | ||||||||||||||||||||||
Total balance of cash flow hedges, net of tax | $ | (293 | ) | $ | (298 | ) | ||||||||||||||||||
Fair Value Hedging [Member] | ' | |||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | |||||||||||||||||||||||
Schedule of Effect of Derivatives designated as Fair Value Hedges and Related Hedged Items | ' | |||||||||||||||||||||||
The following table summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in fair value hedges and related hedged items on the consolidated statement of income for the three months ended March 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Hedging | Hedged | Hedge | Hedging | Hedged | Hedge | |||||||||||||||||||
Instrument | Item | Ineffectiveness(1) | Instrument | Item | Ineffectiveness(1) | |||||||||||||||||||
Agency debentures | $ | (31 | ) | $ | 27 | $ | (4 | ) | $ | 16 | $ | (16 | ) | $ | — | |||||||||
Agency mortgage-backed securities | (11 | ) | 11 | — | — | — | — | |||||||||||||||||
Total gains (losses) included in earnings | $ | (42 | ) | $ | 38 | $ | (4 | ) | $ | 16 | $ | (16 | ) | $ | — | |||||||||
-1 | Reflected in the gains on loans and securities, net line item on the consolidated statement of income. |
Securities_Sold_Under_Agreemen1
Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Securities Sold Under Agreements To Repurchase and FHLB Advances and Other Borrowings Disclosure [Abstract] | ' | |||||||||||||||||
Schedule Of Maturities Summary Of Other Borrowings | ' | |||||||||||||||||
Securities sold under agreements to repurchase, FHLB advances and other borrowings at March 31, 2014 and December 31, 2013 are shown in the following table (dollars in millions): | ||||||||||||||||||
FHLB Advances and | ||||||||||||||||||
Other Borrowings | ||||||||||||||||||
Repurchase | FHLB | Other | Total | Weighted | ||||||||||||||
Agreements(1) | Advances | Average | ||||||||||||||||
Interest Rate | ||||||||||||||||||
Due within one year | $ | 3,595 | $ | 270 | $ | 1 | $ | 3,866 | 0.33% | |||||||||
Due between one and two years | 350 | — | 1 | 351 | 0.83% | |||||||||||||
Due between two and three years | 400 | 250 | 1 | 651 | 0.86% | |||||||||||||
Due between three and four years | — | 400 | — | 400 | 0.40% | |||||||||||||
Thereafter | — | — | 428 | 428 | 2.92% | |||||||||||||
Subtotal | 4,345 | 920 | 431 | 5,696 | 0.62% | |||||||||||||
Fair value hedge adjustments | — | 27 | — | 27 | ||||||||||||||
Deferred costs | — | (91 | ) | — | (91 | ) | ||||||||||||
Total other borrowings at March 31, 2014 | $ | 4,345 | $ | 856 | $ | 431 | $ | 5,632 | 0.62% | |||||||||
Total other borrowings at December 31, 2013 | $ | 4,543 | $ | 851 | $ | 428 | $ | 5,822 | 0.72% | |||||||||
-1 | The maximum amount at any month end for repurchase agreements was $4.9 billion and $4.6 billion for three months ended March 31, 2014 and the year ended December 31, 2013, respectively. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | ' | |||||||||||||||
The following tables present after-tax changes in each component of accumulated other comprehensive loss for the three months ended March 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||
Available-for-sale | Cash Flow | Foreign | Total | |||||||||||||
Securities | Hedging | Currency | ||||||||||||||
Instruments | Translation | |||||||||||||||
Beginning balance, December 31, 2013 | $ | (160 | ) | $ | (298 | ) | $ | 5 | $ | (453 | ) | |||||
Other comprehensive income (loss) before reclassifications | 81 | (16 | ) | — | 65 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | (12 | ) | 21 | — | 9 | |||||||||||
Net change | 69 | 5 | — | 74 | ||||||||||||
Ending balance, March 31, 2014 | $ | (91 | ) | $ | (293 | ) | $ | 5 | $ | (379 | ) | |||||
Available-for-sale | Cash Flow | Foreign | Total | |||||||||||||
Securities | Hedging | Currency | ||||||||||||||
Instruments | Translation | |||||||||||||||
Beginning balance, December 31, 2012 | $ | 137 | $ | (452 | ) | $ | 5 | $ | (310 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (5 | ) | 6 | — | 1 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | (10 | ) | 20 | — | 10 | |||||||||||
Net change | (15 | ) | 26 | — | 11 | |||||||||||
Ending balance, March 31, 2013 | $ | 122 | $ | (426 | ) | $ | 5 | $ | (299 | ) | ||||||
Reclassification out of Accumulated Other Comprehensive Loss | ' | |||||||||||||||
The following table presents the income statement line items impacted by reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||
Accumulated Other Comprehensive Loss Components | Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Items in the Consolidated Statement of Income | ||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
$ | 19 | $ | 16 | Gains on loans and securities, net | ||||||||||||
(7 | ) | (6 | ) | Tax expense | ||||||||||||
$ | 12 | $ | 10 | Reclassification into earnings, net | ||||||||||||
Cash flow hedging instruments: | ||||||||||||||||
$ | — | $ | 2 | Operating interest income | ||||||||||||
(35 | ) | (35 | ) | Operating interest expense | ||||||||||||
(35 | ) | (33 | ) | Reclassification into earnings, before tax | ||||||||||||
14 | 13 | Tax expense | ||||||||||||||
$ | (21 | ) | $ | (20 | ) | Reclassification into earnings, net |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of Earnings Per Share Reconciliation | ' | |||||||
The following table presents a reconciliation of basic and diluted earnings per share (in millions, except share data and per share amounts): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Basic: | ||||||||
Net income | $ | 97 | $ | 35 | ||||
Basic weighted-average shares outstanding (in thousands) | 288,051 | 286,626 | ||||||
Basic earnings per share | $ | 0.34 | $ | 0.12 | ||||
Diluted: | ||||||||
Net income | $ | 97 | $ | 35 | ||||
Basic weighted-average shares outstanding (in thousands) | 288,051 | 286,626 | ||||||
Effect of dilutive securities: | ||||||||
Weighted-average convertible debentures (in thousands) | 4,080 | 4,125 | ||||||
Weighted-average options and restricted stock issued to employees (in thousands) | 1,688 | 945 | ||||||
Diluted weighted-average shares outstanding (in thousands) | 293,819 | 291,696 | ||||||
Diluted earnings per share | $ | 0.33 | $ | 0.12 | ||||
Regulatory_Requirements_Tables
Regulatory Requirements (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | |||||||||||||||||
Schedule Of Subsidiary Compliance With Regulatory Capital Requirements | ' | |||||||||||||||||
The tables below summarize the minimum excess capital requirements for the Company’s broker-dealer subsidiaries at March 31, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||||||
Required Net | Net Capital | Excess Net | ||||||||||||||||
Capital | Capital | |||||||||||||||||
March 31, 2014: | ||||||||||||||||||
E*TRADE Clearing LLC(1) | $ | 160 | $ | 726 | $ | 566 | ||||||||||||
E*TRADE Securities LLC(1) | — | 315 | 315 | |||||||||||||||
Other broker-dealers | 2 | 15 | 13 | |||||||||||||||
Total | $ | 162 | $ | 1,056 | $ | 894 | ||||||||||||
December 31, 2013: | ||||||||||||||||||
E*TRADE Clearing LLC(1) | $ | 144 | $ | 715 | $ | 571 | ||||||||||||
E*TRADE Securities LLC(1) | — | 261 | 261 | |||||||||||||||
G1 Execution Services, LLC(2) | 1 | 22 | 21 | |||||||||||||||
Other broker-dealers | 2 | 22 | 20 | |||||||||||||||
Total | $ | 147 | $ | 1,020 | $ | 873 | ||||||||||||
-1 | Elected to use the Alternative method to compute net capital. The net capital requirement was $250,000 for E*TRADE Securities LLC for both periods presented. | |||||||||||||||||
-2 | Elected to use the Aggregate Indebtedness method to compute net capital. G1 Execution Services, LLC is the Company's market maker and was held-for-sale at December 31, 2013. The sale of G1 Execution Services, LLC was completed on February 10, 2014. | |||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | ' | |||||||||||||||||
E*TRADE Bank’s actual and required capital amounts and ratios at March 31, 2014 and December 31, 2013 are presented in the table below (dollars in millions): | ||||||||||||||||||
Actual | Minimum Required to be | |||||||||||||||||
Well Capitalized Under | ||||||||||||||||||
Prompt Corrective | ||||||||||||||||||
Action Provisions | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Excess Capital | ||||||||||||||
March 31, 2014: | ||||||||||||||||||
Total capital | $ | 4,429 | 24.02 | % | $ | 1,844 | 10 | % | $ | 2,585 | ||||||||
Tier 1 capital | $ | 4,196 | 22.76 | % | $ | 1,106 | 6 | % | $ | 3,090 | ||||||||
Tier 1 leverage | $ | 4,196 | 9.67 | % | $ | 2,169 | 5 | % | $ | 2,027 | ||||||||
December 31, 2013: | ||||||||||||||||||
Total capital | $ | 4,331 | 24.25 | % | $ | 1,786 | 10 | % | $ | 2,545 | ||||||||
Tier 1 capital | $ | 4,105 | 22.98 | % | $ | 1,072 | 6 | % | $ | 3,033 | ||||||||
Tier 1 leverage | $ | 4,105 | 9.51 | % | $ | 2,158 | 5 | % | $ | 1,947 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||||||||
Financial information for the Company’s reportable segments is presented in the following tables (dollars in millions): | ||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
Net operating interest income | $ | 143 | $ | 123 | $ | — | $ | 266 | ||||||||
Total non-interest income | 193 | 16 | — | 209 | ||||||||||||
Total net revenue | 336 | 139 | — | 475 | ||||||||||||
Provision for loan losses | — | 4 | — | 4 | ||||||||||||
Total operating expense | 195 | 41 | 54 | 290 | ||||||||||||
Income (loss) before other income (expense) and income taxes | 141 | 94 | (54 | ) | 181 | |||||||||||
Total other income (expense) | — | — | (37 | ) | (37 | ) | ||||||||||
Income (loss) before income taxes | $ | 141 | $ | 94 | $ | (91 | ) | $ | 144 | |||||||
Income tax expense | 47 | |||||||||||||||
Net income | $ | 97 | ||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
Net operating interest income | $ | 134 | $ | 107 | $ | — | $ | 241 | ||||||||
Total non-interest income | 163 | 16 | — | 179 | ||||||||||||
Total net revenue | 297 | 123 | — | 420 | ||||||||||||
Provision for loan losses | — | 43 | — | 43 | ||||||||||||
Total operating expense | 199 | 50 | 46 | 295 | ||||||||||||
Income (loss) before other income (expense) and income taxes | 98 | 30 | (46 | ) | 82 | |||||||||||
Total other income (expense) | — | — | (25 | ) | (25 | ) | ||||||||||
Income (loss) before income taxes | $ | 98 | $ | 30 | $ | (71 | ) | 57 | ||||||||
Income tax expense | 22 | |||||||||||||||
Net income | $ | 35 | ||||||||||||||
Reconciliation of Assets from Segment to Consolidated | ' | |||||||||||||||
Segment Assets | ||||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
As of March 31, 2014 | $ | 11,613 | $ | 34,404 | $ | 421 | $ | 46,438 | ||||||||
As of December 31, 2013 | $ | 10,820 | $ | 34,784 | $ | 676 | $ | 46,280 | ||||||||
Organization_Basis_of_Presenta2
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
Feb. 10, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' |
Proceeds from sale of G1 Execution Services, Inc. | $76,000,000 | $76,000,000 | ' |
Basis Of Presentation Detail [Abstract] | ' | ' | ' |
Equity Method Investment Ownership Percentage Low End | ' | 20.00% | ' |
Cost Method Investment Ownership Percentage High End | ' | 20.00% | ' |
Receivables [Abstract] | ' | ' | ' |
Margin Receivables Securities Pledged as Collateral | ' | 10,300,000,000 | 9,100,000,000 |
Margin Receivables Securities Pledged To Clearing Organizations | ' | $2,600,000,000 | $1,900,000,000 |
Disposition_Details
Disposition (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
Feb. 10, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' | ' |
Proceeds from sale of G1 Execution Services, Inc. | $76,000,000 | $76,000,000 | ' |
Gain on Disposition of Business | 4,000,000 | ' | ' |
Assets: | ' | ' | ' |
Cash and equivalents | ' | ' | 11,000 |
Trading securities | ' | ' | 105,000 |
Property and equipment, net | ' | ' | 2,000 |
Other intangibles, net | ' | ' | 21,000 |
Other assets | ' | ' | 38,000 |
Total assets | ' | ' | 177,000 |
Liabilities: | ' | ' | ' |
Other liabilities | ' | ' | 107,000 |
Total liabilities | ' | ' | $107,000 |
Operating_Interest_Income_and_2
Operating Interest Income and Operating Interest Expense (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating interest income: | ' | ' |
Loans | $84 | $107 |
Available-for-sale securities | 79 | 64 |
Held-to-maturity securities | 77 | 58 |
Margin receivables | 62 | 54 |
Securities borrowed and other | 20 | 17 |
Operating interest income | 322 | 300 |
Operating interest expense: | ' | ' |
Securities sold under agreements to repurchase | -35 | -37 |
FHLB advances and other borrowings | -17 | -17 |
Deposits | -2 | -3 |
Customer payables and other | -2 | -2 |
Operating interest expense | -56 | -59 |
Net operating interest income | $266 | $241 |
Fair_Value_Disclosures_Details
Fair Value Disclosures (Details - Inputs) (USD $) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Agency mortgage-backed securities [Member] | Agency CMOs [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Real Estate Owned [Member] | Real Estate Owned [Member] | Real Estate Owned [Member] | ||
Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Maximum [Member] | Minimum [Member] | Weighted Average [Member] | Maximum [Member] | Minimum [Member] | Weighted Average [Member] | Maximum [Member] | Minimum [Member] | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Coupon Rate | ' | 3.08% | 3.16% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Appraised Value | ' | ' | ' | $334,900 | $1,200,000 | $19,000 | $289,600 | $1,005,800 | $7,000 | $344,600 | $900,000 | $18,300 |
Impairment of goodwill | $142,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Disclosures_Details1
Fair Value Disclosures (Details - Recurring and Nonrecurring) (USD $) | 12 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | Agency residential mortgage-backed securities and CMOs [Member] | Agency residential mortgage-backed securities and CMOs [Member] | Agency residential mortgage-backed securities and CMOs [Member] | Agency residential mortgage-backed securities and CMOs [Member] | Agency residential mortgage-backed securities and CMOs [Member] | Agency residential mortgage-backed securities and CMOs [Member] | Non-agency CMOs [Member] | Non-agency CMOs [Member] | Non-agency CMOs [Member] | Investment Securities [Member] | Investment Securities [Member] | Investment Securities [Member] | Investment Securities [Member] | Investment Securities [Member] | Investment Securities [Member] | Agency Debentures [Member] | Agency Debentures [Member] | Agency Debentures [Member] | Agency Debentures [Member] | Agency Debentures [Member] | Agency Debentures [Member] | Agency Debt Securities [Member] | Agency Debt Securities [Member] | Agency Debt Securities [Member] | Agency Debt Securities [Member] | Agency Debt Securities [Member] | Agency Debt Securities [Member] | Municipal Bonds [Member] | Municipal Bonds [Member] | Municipal Bonds [Member] | Municipal Bonds [Member] | Municipal Bonds [Member] | Municipal Bonds [Member] | Corporate Bonds [Member] | Corporate Bonds [Member] | Corporate Bonds [Member] | Corporate Bonds [Member] | Corporate Bonds [Member] | Corporate Bonds [Member] | Loans Receivable [Member] | Loans Receivable [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Real Estate Owned [Member] | Real Estate Owned [Member] | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | Level 3 [Member] | ||||||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total available-for-sale securities | $13,592,000,000 | $12,766,000,000 | ' | $12,766,000,000 | $13,592,000,000 | ' | ' | ' | ' | $12,766,000,000 | $13,578,000,000 | $14,000,000 | ' | ' | $12,250,000,000 | $12,250,000,000 | $12,236,000,000 | $14,000,000 | $11,423,000,000 | $12,236,000,000 | $11,423,000,000 | $12,236,000,000 | $11,423,000,000 | $12,236,000,000 | $14,000,000 | $14,000,000 | $14,000,000 | $1,343,000,000 | $1,342,000,000 | $1,343,000,000 | $1,342,000,000 | $1,343,000,000 | $1,342,000,000 | $493,000,000 | $466,000,000 | $493,000,000 | $466,000,000 | $493,000,000 | $466,000,000 | $805,000,000 | $831,000,000 | $805,000,000 | $831,000,000 | $805,000,000 | $831,000,000 | $41,000,000 | $40,000,000 | $41,000,000 | $40,000,000 | $41,000,000 | $40,000,000 | $4,000,000 | $5,000,000 | $4,000,000 | $5,000,000 | $4,000,000 | $5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative assets | ' | ' | ' | 66,000,000 | 107,000,000 | ' | ' | ' | ' | 66,000,000 | 107,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits with clearing organizations | ' | ' | ' | 85,000,000 | 53,000,000 | ' | ' | 85,000,000 | 53,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Held-for-sale assets - trading securities | 105,000 | ' | ' | ' | 105,000,000 | ' | ' | ' | 104,000,000 | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total other assets measured at fair value on a recurring basis | ' | ' | ' | 151,000,000 | 265,000,000 | ' | ' | 85,000,000 | 157,000,000 | 66,000,000 | 108,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets measured at fair value on a recurring basis | ' | ' | ' | 12,917,000,000 | 13,857,000,000 | ' | ' | 85,000,000 | 157,000,000 | 12,832,000,000 | 13,686,000,000 | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities | ' | ' | ' | 144,000,000 | 169,000,000 | ' | ' | ' | ' | 144,000,000 | 169,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Held-for-sale liabilities - securities sold, not yet purchased | ' | ' | ' | ' | 95,000,000 | ' | ' | ' | 94,000,000 | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities measured at fair value on a recurring basis | ' | ' | ' | 144,000,000 | 264,000,000 | ' | ' | ' | 94,000,000 | 144,000,000 | 170,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total loans receivable | ' | ' | ' | ' | ' | 45,000,000 | 292,000,000 | ' | ' | ' | ' | ' | 45,000,000 | 292,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,000,000 | 246,000,000 | 33,000,000 | 246,000,000 | ' | ' | 12,000,000 | 46,000,000 | 12,000,000 | 46,000,000 | ' | ' |
REO | ' | ' | ' | ' | ' | 29,000,000 | 47,000,000 | ' | ' | ' | ' | ' | 29,000,000 | 47,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Assets Measured at Fair Value On A Nonrecurring Basis | ' | ' | ' | ' | ' | 74,000,000 | 339,000,000 | ' | ' | ' | ' | ' | 74,000,000 | 339,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Losses (Gains) On Assets, Nonrecurring Fair Value Measurements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000,000 | 35,000,000 | 5,000,000 | 16,000,000 | ' | ' | ' | ' | 12,000,000 | 19,000,000 | ' | ' | ' | ' | -1,000,000 | 1,000,000 |
Fair Value Disclosure Details Recurring Level 3 (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets measured at fair value Level 3 recurring percentage of total assets | '0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities measured at fair value Level 3 recurring percentage of total liabilities | 'none | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Disclosure Details Recurring (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets measured at fair value on recurring basis percentage of total assets | 30.00% | 28.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities measured at fair value on recurring basis percentage of total liabilities | 1.00% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Disclosure Details Nonrecurring (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of goodwill | 142,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill allocated to the market making reporting unit | 0 | ' | 142,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Transfers Between Level 1 and Level 2, Description and Policy (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value, assets, Level 1 to Level 2 transfers, amount | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value, assets, Level 2 to Level 1 transfers, amount | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value, liabilities, Level 1 to Level 2 transfers, amount | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value, liabilities, Level 2 to Level 1 transfers, amount | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Disclosures_Details2
Fair Value Disclosures (Details - Level 3) (Non-agency CMOs [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Non-agency CMOs [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance, beginning of period | $14 | $49 |
Gains (losses) recognized in earnings | 6 | -1 |
Net gains recognized in other comprehensive income | 3 | 2 |
Sales | -23 | -35 |
Settlements | 0 | -1 |
Balance, end of period | $0 | $14 |
Fair_Value_Disclosures_Details3
Fair Value Disclosures (Details - FV of Financial Instruments) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and equivalents | $1,585 | $1,838 | $1,508 | $2,762 |
Cash required to be segregated under federal or other regulations | 981 | 1,066 | ' | ' |
Total held-to-maturity securities | 11,248 | 10,181 | ' | ' |
Margin Receivables | 7,346 | 6,353 | ' | ' |
Loans held-for-sale | 795 | 0 | ' | ' |
Total loans receivable, net | 6,982 | 8,123 | ' | ' |
Investment in FHLB stock | 56 | 61 | ' | ' |
Deposits paid for securities borrowed | 487 | 536 | ' | ' |
Deposits | 25,749 | 25,971 | ' | ' |
Securities sold under agreements to repurchase | 4,345 | 4,543 | ' | ' |
Customer Payables | 6,260 | 6,310 | ' | ' |
FHLB advances and other borrowings | 1,287 | 1,279 | ' | ' |
Corporate debt | 1,769 | 1,768 | ' | ' |
Deposits received for securities loaned | 1,608 | 1,050 | ' | ' |
Allowance for loan losses | 403 | 453 | ' | ' |
Agency residential mortgage-backed securities and CMOs [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total held-to-maturity securities | 9,048 | 8,359 | ' | ' |
Agency Debentures [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total held-to-maturity securities | 163 | 164 | ' | ' |
Agency Debt Securities [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total held-to-maturity securities | 2,037 | 1,658 | ' | ' |
Carrying Value [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and equivalents | 1,585 | 1,838 | ' | ' |
Cash required to be segregated under federal or other regulations | 981 | 1,066 | ' | ' |
Total held-to-maturity securities | 11,248 | 10,181 | ' | ' |
Margin Receivables | 7,346 | 6,353 | ' | ' |
Loans held-for-sale | 795 | ' | ' | ' |
Total loans receivable, net | 6,982 | 8,123 | ' | ' |
Investment in FHLB stock | 56 | 61 | ' | ' |
Deposits paid for securities borrowed | 487 | 536 | ' | ' |
Deposits | 25,749 | 25,971 | ' | ' |
Securities sold under agreements to repurchase | 4,345 | 4,543 | ' | ' |
Customer Payables | 6,260 | 6,310 | ' | ' |
FHLB advances and other borrowings | 1,287 | 1,279 | ' | ' |
Corporate debt | 1,769 | 1,768 | ' | ' |
Deposits received for securities loaned | 1,608 | 1,050 | ' | ' |
Carrying Value [Member] | Agency residential mortgage-backed securities and CMOs [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total held-to-maturity securities | 9,048 | 8,359 | ' | ' |
Carrying Value [Member] | Agency Debentures [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total held-to-maturity securities | 163 | 164 | ' | ' |
Carrying Value [Member] | Agency Debt Securities [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total held-to-maturity securities | 2,037 | 1,658 | ' | ' |
Carrying Value [Member] | One- To Four-Family [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total loans receivable, net | 3,442 | 4,392 | ' | ' |
Carrying Value [Member] | Home Equity [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total loans receivable, net | 2,994 | 3,148 | ' | ' |
Carrying Value [Member] | Consumer And Other [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total loans receivable, net | 546 | 583 | ' | ' |
Fair Value [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and equivalents | 1,585 | 1,838 | ' | ' |
Cash required to be segregated under federal or other regulations | 981 | 1,066 | ' | ' |
Total held-to-maturity securities | 11,254 | 10,092 | ' | ' |
Margin Receivables | 7,346 | 6,353 | ' | ' |
Loans held-for-sale | 802 | ' | ' | ' |
Total loans receivable, net | 6,258 | 7,208 | ' | ' |
Investment in FHLB stock | 56 | 61 | ' | ' |
Deposits paid for securities borrowed | 487 | 536 | ' | ' |
Deposits | 25,749 | 25,971 | ' | ' |
Securities sold under agreements to repurchase | 4,360 | 4,571 | ' | ' |
Customer Payables | 6,260 | 6,310 | ' | ' |
FHLB advances and other borrowings | 1,175 | 1,149 | ' | ' |
Corporate debt | 1,965 | 1,951 | ' | ' |
Deposits received for securities loaned | 1,608 | 1,050 | ' | ' |
Fair Value [Member] | Level 1 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and equivalents | 1,585 | 1,838 | ' | ' |
Cash required to be segregated under federal or other regulations | 981 | 1,066 | ' | ' |
Fair Value [Member] | Level 2 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total held-to-maturity securities | 11,254 | 10,092 | ' | ' |
Margin Receivables | 7,346 | 6,353 | ' | ' |
Loans held-for-sale | 802 | ' | ' | ' |
Deposits paid for securities borrowed | 487 | 536 | ' | ' |
Deposits | 25,749 | 25,971 | ' | ' |
Securities sold under agreements to repurchase | 4,360 | 4,571 | ' | ' |
Customer Payables | 6,260 | 6,310 | ' | ' |
FHLB advances and other borrowings | 927 | 924 | ' | ' |
Corporate debt | 1,965 | 1,951 | ' | ' |
Deposits received for securities loaned | 1,608 | 1,050 | ' | ' |
Fair Value [Member] | Level 3 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total loans receivable, net | 6,258 | 7,208 | ' | ' |
Investment in FHLB stock | 56 | 61 | ' | ' |
FHLB advances and other borrowings | 248 | 225 | ' | ' |
Fair Value [Member] | Agency residential mortgage-backed securities and CMOs [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total held-to-maturity securities | 9,057 | 8,293 | ' | ' |
Fair Value [Member] | Agency residential mortgage-backed securities and CMOs [Member] | Level 2 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total held-to-maturity securities | 9,057 | 8,293 | ' | ' |
Fair Value [Member] | Agency Debentures [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total held-to-maturity securities | 167 | 168 | ' | ' |
Fair Value [Member] | Agency Debentures [Member] | Level 2 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total held-to-maturity securities | 167 | 168 | ' | ' |
Fair Value [Member] | Agency Debt Securities [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total held-to-maturity securities | 2,030 | 1,631 | ' | ' |
Fair Value [Member] | Agency Debt Securities [Member] | Level 2 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total held-to-maturity securities | 2,030 | 1,631 | ' | ' |
Fair Value [Member] | One- To Four-Family [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total loans receivable, net | 2,975 | 3,790 | ' | ' |
Fair Value [Member] | One- To Four-Family [Member] | Level 3 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total loans receivable, net | 2,975 | 3,790 | ' | ' |
Fair Value [Member] | Home Equity [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total loans receivable, net | 2,726 | 2,822 | ' | ' |
Fair Value [Member] | Home Equity [Member] | Level 3 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total loans receivable, net | 2,726 | 2,822 | ' | ' |
Fair Value [Member] | Consumer And Other [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total loans receivable, net | 557 | 596 | ' | ' |
Fair Value [Member] | Consumer And Other [Member] | Level 3 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total loans receivable, net | $557 | $596 | ' | ' |
Offsetting_Assets_and_Liabilit2
Offsetting Assets and Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Offsetting Assets [Abstract] | ' | ' |
Securities Borrowed, Gross | $487 | $536 |
Securities Borrowed, Liability | 0 | 0 |
Securities Borrowed | 487 | 536 |
Securities Borrowed, Financial Instruments, Not Offset | -306 | -247 |
Securities Borrowed, Collateral Received | -171 | -282 |
Securities Borrowed, Amount Offset Against Collateral | 10 | 7 |
Derivative Asset, Fair Value, Gross Asset | 62 | 92 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset | 62 | 92 |
Derivative Asset, Financial Instruments, Not Offset | -35 | -48 |
Derivative Asset, Collateral Received | -13 | -12 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 14 | 32 |
Derivative Asset, Securities Borrowed, Gross | 549 | 628 |
Derivative Asset, Securities Borrowed, Liability | 0 | 0 |
Derivative Asset, Securities Borrowed | 549 | 628 |
Derivative Asset, Securities Borrowed, Financial Instruments Not Offset | -341 | -295 |
Derivative Asset, Securities Borrowed, Collateral Received | -184 | -294 |
Derivative Asset, Securities Borrowed Net | 24 | 39 |
Offsetting Liabilities [Abstract] | ' | ' |
Securities Sold under Agreements to Repurchase, Gross | 4,345 | 4,543 |
Securities Sold under Agreements to Repurchase, Asset | 0 | 0 |
Securities sold under agreements to repurchase | 4,345 | 4,543 |
Securities Sold under Agreements to Repurchase, Financial Instruments Not Offset | 0 | 0 |
Securities Sold under Agreements to Repurchase, Collateral Pledged | -4,342 | -4,537 |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 3 | 6 |
Securities Loaned, Gross | 1,608 | 1,050 |
Securities Loaned, Asset | 0 | 0 |
Securities Loaned | 1,608 | 1,050 |
Securities Loaned, Financial Instruments, Not Offset | -306 | -247 |
Securities Loaned, Collateral Pledged | -1,195 | -740 |
Securities Loaned, Amount Offset Against Collateral | 107 | 63 |
Derivative Liability, Fair Value, Gross Liability | 139 | 168 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability | 139 | 168 |
Derivative Liability, Financial Instruments, Not Offset | -35 | -48 |
Derivative Liability, Collateral Pledged | -104 | -120 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Gross | 6,092 | 5,761 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Asset | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned | 6,092 | 5,761 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Financial Instruments Not Offset | -341 | -295 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Collateral Pledged | -5,641 | -5,397 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Amount Offset Against Collateral | 110 | 69 |
Offsetting Footnotes [Abstract] | ' | ' |
Interest Payable Excluded From Gross Amounts of Derivatives | 17 | 19 |
Securities Borrowed, Transacted Through Clearing Company | 311 | 415 |
Securities Loaned, Transacted Through Clearing Company | 1,000 | 682 |
Derivative Asset, Not Subject to Master Netting Arrangement | 4 | 15 |
Derivative Liability, Not Subject to Master Netting Arrangement | $5 | $1 |
AvailableforSale_and_HeldtoMat2
Available-for-Sale and Held-to-Maturity Securities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Marketable Securities [Line Items] | ' | ' |
Available-for-sale securities, amortized cost | $12,950 | $13,922 |
Available-for-sale securities, gross unrealized gains | 99 | 76 |
Available-for-sale securities, gross unrealized losses | -283 | -406 |
Available-for-sale securities, fair value | 12,766 | 13,592 |
Held-to-maturity securities, amortized cost | 11,248 | 10,181 |
Held-to-maturity securities, gross unrecognized gains | 145 | 116 |
Held-to-maturity securities, gross unrecognized losses | -139 | -205 |
Held-to-maturity securities, fair value | 11,254 | 10,092 |
Total residential mortgage-backed securities [Member] | ' | ' |
Schedule of Marketable Securities [Line Items] | ' | ' |
Available-for-sale securities, amortized cost | ' | 12,522 |
Available-for-sale securities, gross unrealized gains | ' | 68 |
Available-for-sale securities, gross unrealized losses | ' | -340 |
Available-for-sale securities, fair value | ' | 12,250 |
Non-agency CMOs [Member] | ' | ' |
Schedule of Marketable Securities [Line Items] | ' | ' |
Available-for-sale securities, amortized cost | ' | 17 |
Available-for-sale securities, gross unrealized gains | ' | 2 |
Available-for-sale securities, gross unrealized losses | ' | -5 |
Available-for-sale securities, fair value | ' | 14 |
Agency residential mortgage-backed securities and CMOs [Member] | ' | ' |
Schedule of Marketable Securities [Line Items] | ' | ' |
Available-for-sale securities, amortized cost | 11,584 | 12,505 |
Available-for-sale securities, gross unrealized gains | 81 | 66 |
Available-for-sale securities, gross unrealized losses | -242 | -335 |
Available-for-sale securities, fair value | 11,423 | 12,236 |
Held-to-maturity securities, amortized cost | 9,048 | 8,359 |
Held-to-maturity securities, gross unrecognized gains | 119 | 99 |
Held-to-maturity securities, gross unrecognized losses | -110 | -165 |
Held-to-maturity securities, fair value | 9,057 | 8,293 |
Investment Securities [Member] | ' | ' |
Schedule of Marketable Securities [Line Items] | ' | ' |
Available-for-sale securities, amortized cost | 1,366 | 1,400 |
Available-for-sale securities, gross unrealized gains | 18 | 8 |
Available-for-sale securities, gross unrealized losses | -41 | -66 |
Available-for-sale securities, fair value | 1,343 | 1,342 |
Held-to-maturity securities, amortized cost | 2,200 | 1,822 |
Held-to-maturity securities, gross unrecognized gains | 26 | 17 |
Held-to-maturity securities, gross unrecognized losses | -29 | -40 |
Held-to-maturity securities, fair value | 2,197 | 1,799 |
Agency Debentures [Member] | ' | ' |
Schedule of Marketable Securities [Line Items] | ' | ' |
Available-for-sale securities, amortized cost | 522 | 520 |
Available-for-sale securities, gross unrealized gains | 5 | ' |
Available-for-sale securities, gross unrealized losses | -34 | -54 |
Available-for-sale securities, fair value | 493 | 466 |
Held-to-maturity securities, amortized cost | 163 | 164 |
Held-to-maturity securities, gross unrecognized gains | 4 | 4 |
Held-to-maturity securities, fair value | 167 | 168 |
Agency Debt Securities [Member] | ' | ' |
Schedule of Marketable Securities [Line Items] | ' | ' |
Available-for-sale securities, amortized cost | 798 | 832 |
Available-for-sale securities, gross unrealized gains | 12 | 8 |
Available-for-sale securities, gross unrealized losses | -5 | -9 |
Available-for-sale securities, fair value | 805 | 831 |
Held-to-maturity securities, amortized cost | 2,037 | 1,658 |
Held-to-maturity securities, gross unrecognized gains | 22 | 13 |
Held-to-maturity securities, gross unrecognized losses | -29 | -40 |
Held-to-maturity securities, fair value | 2,030 | 1,631 |
Municipal Bonds [Member] | ' | ' |
Schedule of Marketable Securities [Line Items] | ' | ' |
Available-for-sale securities, amortized cost | 41 | 42 |
Available-for-sale securities, gross unrealized gains | 1 | ' |
Available-for-sale securities, gross unrealized losses | -1 | -2 |
Available-for-sale securities, fair value | 41 | 40 |
Corporate Bonds [Member] | ' | ' |
Schedule of Marketable Securities [Line Items] | ' | ' |
Available-for-sale securities, amortized cost | 5 | 6 |
Available-for-sale securities, gross unrealized losses | -1 | -1 |
Available-for-sale securities, fair value | $4 | $5 |
AvailableforSale_and_HeldtoMat3
Available-for-Sale and Held-to-Maturity Securities (Details - Maturity) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Available-for-sale Securities, Debt Maturities [Abstract] | ' | ' |
Available-for-sale securities, due within one to five years, amortized cost | $58,000,000 | ' |
Available-for-sale securities, due within five to ten years, amortized cost | 1,031,000,000 | ' |
Available-for-sale securities, due after ten years, amortized cost | 11,861,000,000 | ' |
Available-for-sale securities, amortized cost | 12,950,000,000 | ' |
Available-for-sale securities, due within one to five years, fair value | 58,000,000 | ' |
Available-for-sale securities, due within five to ten years, fair value | 1,020,000,000 | ' |
Available-for-sale securities, due after ten years, fair value | 11,688,000,000 | ' |
Available-for-sale securities, fair value | 12,766,000,000 | ' |
Held To Maturity Securities Debt Maturities [Abstract] | ' | ' |
Held-to-maturity securities, due within one to five years, net carrying amount | 964,000,000 | ' |
Held-to-maturity securities, due within five to ten years, net carrying amount | 2,589,000,000 | ' |
Held-to-maturity securities, due after ten years, net carrying amount | 7,695,000,000 | ' |
Held-to-maturity securities, amortized cost | 11,248,000,000 | 10,181,000,000 |
Held-to-maturity securities, due within one to five years, fair value | 995,000,000 | ' |
Held-to-maturity securities, due within five to ten years, fair value | 2,624,000,000 | ' |
Held-to-maturity securities, due after ten years, fair value | 7,635,000,000 | ' |
Held-to-maturity securities, fair value | 11,254,000,000 | 10,092,000,000 |
Available For Sale And Held To Maturity Textuals [Abstract] | ' | ' |
Available-for-sale securities pledged to creditors with the right to sell or repledge | 2,300,000,000 | 2,100,000,000 |
Held-to-maturity securities pledged to creditors with the right to sell or repledge | $2,900,000,000 | $3,400,000,000 |
AvailableforSale_Securities_De
Available-for-Sale Securities (Details - OTTI) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, less than twelve months, fair value | $3,827 | $7,299 |
Available-for-sale securities, twelve months or longer, fair value | 2,922 | 1,282 |
Available-for-sale securities, fair value | 6,749 | 8,581 |
Available-for-sale securities, less than twelve months, aggregate losses | -130 | -333 |
Available-for-sale securities, twelve months or longer, aggregate losses | -153 | -73 |
Available-for-sale securities, aggregate losses | -283 | -406 |
Agency residential mortgage-backed securities and CMOs [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, less than twelve months, fair value | 3,559 | 6,422 |
Available-for-sale securities, twelve months or longer, fair value | 2,679 | 1,266 |
Available-for-sale securities, fair value | 6,238 | 7,688 |
Available-for-sale securities, less than twelve months, aggregate losses | -104 | -268 |
Available-for-sale securities, twelve months or longer, aggregate losses | -138 | -67 |
Available-for-sale securities, aggregate losses | -242 | -335 |
Non-agency CMOs [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, twelve months or longer, fair value | ' | 11 |
Available-for-sale securities, fair value | ' | 11 |
Available-for-sale securities, twelve months or longer, aggregate losses | ' | -5 |
Available-for-sale securities, aggregate losses | ' | -5 |
Agency Debentures [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, less than twelve months, fair value | 245 | 466 |
Available-for-sale securities, twelve months or longer, fair value | 78 | ' |
Available-for-sale securities, fair value | 323 | 466 |
Available-for-sale securities, less than twelve months, aggregate losses | -25 | -54 |
Available-for-sale securities, twelve months or longer, aggregate losses | -9 | ' |
Available-for-sale securities, aggregate losses | -34 | -54 |
Agency Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, less than twelve months, fair value | 5 | 384 |
Available-for-sale securities, twelve months or longer, fair value | 160 | ' |
Available-for-sale securities, fair value | 165 | 384 |
Available-for-sale securities, less than twelve months, aggregate losses | 0 | -9 |
Available-for-sale securities, twelve months or longer, aggregate losses | -5 | ' |
Available-for-sale securities, aggregate losses | -5 | -9 |
Municipal Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, less than twelve months, fair value | 18 | 27 |
Available-for-sale securities, fair value | 18 | 27 |
Available-for-sale securities, less than twelve months, aggregate losses | -1 | -2 |
Available-for-sale securities, aggregate losses | -1 | -2 |
Corporate Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, twelve months or longer, fair value | 5 | 5 |
Available-for-sale securities, fair value | 5 | 5 |
Available-for-sale securities, twelve months or longer, aggregate losses | -1 | -1 |
Available-for-sale securities, aggregate losses | ($1) | ($1) |
Heldtomaturity_Securities_Deta
Held-to-maturity Securities (Details - OTTI) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Held-to-maturity securities, less than twelve months, fair value | $3,858 | $4,760 |
Held-to-maturity securities, twelve months or longer, fair value | 1,822 | 891 |
Held-to-maturity securities, fair value | 5,680 | 5,651 |
Held-to-maturity securities, less than twelve months, aggregate losses | -75 | -161 |
Held-to-maturity securities, twelve months or longer, aggregate losses | -64 | -44 |
Held-to-maturity securities, aggregate losses | -139 | -205 |
Agency residential mortgage-backed securities and CMOs [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Held-to-maturity securities, less than twelve months, fair value | 3,213 | 3,607 |
Held-to-maturity securities, twelve months or longer, fair value | 1,512 | 891 |
Held-to-maturity securities, fair value | 4,725 | 4,498 |
Held-to-maturity securities, less than twelve months, aggregate losses | -56 | -121 |
Held-to-maturity securities, twelve months or longer, aggregate losses | -54 | -44 |
Held-to-maturity securities, aggregate losses | -110 | -165 |
Agency Debt Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Held-to-maturity securities, less than twelve months, fair value | 645 | 1,153 |
Held-to-maturity securities, twelve months or longer, fair value | 310 | ' |
Held-to-maturity securities, fair value | 955 | 1,153 |
Held-to-maturity securities, less than twelve months, aggregate losses | -19 | -40 |
Held-to-maturity securities, twelve months or longer, aggregate losses | -10 | ' |
Held-to-maturity securities, aggregate losses | ($29) | ($40) |
AvailableforSale_and_HeldtoMat4
Available-for-Sale and Held-to-Maturity Securities (Details - Other) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other Than Temporary Impairment Credit Losses Recognized In Earnings Roll Forward [Abstract] | ' | ' |
Credit loss balance, beginning of period | $166 | $187 |
Subsequent credit impairment | ' | 1 |
Securities sold | -14 | -23 |
Credit loss balance, end of period | 152 | 165 |
Other Than Temporary Impairment Credit Losses On Securities WrittenOff Textuals [Abstract] | ' | ' |
Other Than Temporary Impairment Credit Losses Recognized In Earnings Securities Factored To Zero | 121 | 114 |
Gains on securities, net: | ' | ' |
Gains on available-for-sale securities | 19 | 24 |
Losses on available-for-sale securities | ' | -8 |
Hedge ineffectiveness | -4 | ' |
Gains on loans and securities, net | 15 | 16 |
Non-agency CMOs [Member] | ' | ' |
Gains on securities, net: | ' | ' |
Available For Sale Securities Sold, Amortized Cost | 17 | 231 |
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | 23 | 227 |
Available-for-sale Securities, Gross Realized Gain (Loss) | $6 | ($4) |
Loans_Receivable_Net_Details
Loans Receivable, Net (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Loans Receivable, Net [Abstract] | ' | ' |
One- to four-family | $3,479 | $4,475 |
Home equity | 3,304 | 3,454 |
Consumer and other | 565 | 602 |
Total loans receivable | 7,348 | 8,531 |
Unamortized premiums, net | 37 | 45 |
Allowance for loan losses | -403 | -453 |
Total loans receivable, net | 6,982 | 8,123 |
Loans Evaluated For Impairment Methodology [Abstract] | ' | ' |
Loans collectively evaluated for impairment, carrying value | 6,832 | 7,163 |
Loans individually evaluated for impairment (TDRs), carrying value | 553 | 1,413 |
Total recorded investment in loans receivable | 7,385 | 8,576 |
Loans collectively evaluated for impairment, allowance for loan losses | 328 | 329 |
Loans individually evaluated for impairment (TDRs), allowance for loan losses | 75 | 124 |
Allowance for loan losses | $403 | $453 |
Loans_Receivable_Net_Details_C
Loans Receivable, Net (Details - Credit Quality) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Home Equity Benchmark [Member] | Home Equity Benchmark [Member] | Home Equity Benchmark [Member] | California [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | One- To Four-Family [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | Home Equity [Member] | |
Financing Receivables in the First and Second Lien Position, Percent [Member] | Home Equity Installment Loans, Percentage [Member] | Home Equity Line of Credit, Percentage [Member] | One- To Four-Family and Home Equity Benchmark [Member] | Minimum [Member] | Maximum [Member] | One- To Four-Family Benchmark [Member] | One- To Four-Family Benchmark [Member] | One- To Four-Family Benchmark [Member] | One- To Four-Family Benchmark [Member] | One- To Four-Family Benchmark [Member] | One- To Four-Family Benchmark [Member] | Interest Only Not Yet Amortizing [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 2500 [Member] | Greater Than 720 [Member] | Greater Than 720 [Member] | Between 719 And 700 [Member] | Between 719 And 700 [Member] | Between 699 And 680 [Member] | Between 699 And 680 [Member] | Between 679 And 660 [Member] | Between 679 And 660 [Member] | Between 659 And 620 [Member] | Between 659 And 620 [Member] | Less Than 620 [Member] | Less Than 620 [Member] | FICO Score At Origination Included [Member] | FICO Score At Origination Included [Member] | Full Documentation [Member] | Full Documentation [Member] | Low Or No Documentation [Member] | Low Or No Documentation [Member] | Current Loan To Value Or Combined Loan To Value Ratio Less Then 80 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Less Then 80 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 80 And 100 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 80 And 100 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 100 And 120 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 100 And 120 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Greater Then 120 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Greater Then 120 Percent [Member] | Minimum [Member] | Maximum [Member] | Interest Only Not Yet Amortizing [Member] | Home Equity Line of Credit Benchmark [Member] | Home Equity Line of Credit Benchmark [Member] | Home Equity Line of Credit Benchmark [Member] | Home Equity Line of Credit Benchmark [Member] | Home Equity Line of Credit Benchmark [Member] | Home Equity Line of Credit Benchmark [Member] | Home Equity Line of Credit Benchmark [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 500 [Member] | Home Equity Benchmark [Member] | Greater Than 720 [Member] | Greater Than 720 [Member] | Between 719 And 700 [Member] | Between 719 And 700 [Member] | Between 699 And 680 [Member] | Between 699 And 680 [Member] | Between 679 And 660 [Member] | Between 679 And 660 [Member] | Between 659 And 620 [Member] | Between 659 And 620 [Member] | Less Than 620 [Member] | Less Than 620 [Member] | FICO Score At Origination Included [Member] | FICO Score At Origination Included [Member] | Full Documentation [Member] | Full Documentation [Member] | Low Or No Documentation [Member] | Low Or No Documentation [Member] | Current Loan To Value Or Combined Loan To Value Ratio Less Then 80 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Less Then 80 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 80 And 100 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 80 And 100 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 100 And 120 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 100 And 120 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Greater Then 120 Percent [Member] | Current Loan To Value Or Combined Loan To Value Ratio Greater Then 120 Percent [Member] | ||||||
Financing Receivables, State, Risk [Member] | Interest Only Not Yet Amortizing Risk [Member] | Interest only, Already Amortizing | Interest Only Conversion to Amortizing Loans, Through December 31, 2014 | Interest Only Conversion to Amortizing Loans, Year ending December 31, 2015 | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2016 | Interest Only Conversion to Amortizing Loans, Year ending December 31, 2017 | Interest Only Not Yet Amortizing Borrowers Paying Minimum 2500 Risk [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 10000 Risk [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 500 Risk [Member] | Interest only, Already Amortizing | Interest Only Conversion to Amortizing Loans, Through December 31, 2014 | Interest Only Conversion to Amortizing Loans, Year ending December 31, 2015 | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2016 | Interest Only Conversion to Amortizing Loans, Year ending December 31, 2017 | Interest Only Not Amortizing Until After 2014 Risk [Member] | Balloon Loan, Percentage [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 2500 Risk [Member] | Financing Receivables in First Lien Position, Percentage [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Quality Indicators [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total mortgage loans receivable | ' | ' | ' | ' | ' | $3,479 | $4,475 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,006 | $2,252 | $326 | $436 | $280 | $366 | $212 | $296 | $266 | $404 | $389 | $721 | $79 | $95 | $1,549 | $1,847 | $1,930 | $2,628 | $1,711 | $1,912 | $1,014 | $1,365 | $453 | $711 | $301 | $487 | $3,304 | $3,454 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,740 | $1,811 | $327 | $343 | $278 | $293 | $220 | $245 | $298 | $310 | $441 | $452 | $4 | $10 | $1,693 | $1,769 | $1,611 | $1,685 | $1,122 | $1,142 | $829 | $866 | $704 | $736 | $649 | $710 |
Average estimated current LTV/CLTV | ' | ' | ' | ' | ' | 84.00% | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97.00% | 98.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average LTV/CLTV at loan origination, One- To Four-Family | ' | ' | ' | ' | ' | 71.00% | 72.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | 1.00% | 20.00% | 80.00% | 40.00% | ' | ' | ' | ' | 43.00% | 57.00% | 1.00% | 5.00% | 16.00% | 21.00% | 14.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 12.00% | 6.00% | 27.00% | 42.00% | 13.00% | 80.00% | 8.00% | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Credit Risk, Loan Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'slightly over a third | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'slightly under half | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans, Interest-Only Period | ' | ' | ' | ' | ' | ' | ' | '5 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans, Amortization Period | ' | ' | ' | ' | ' | ' | ' | '20 years | '25 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans, Draw Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Greater Than 10% of Loans, States Other than California, Count | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans_Receivable_Net_Details_A
Loans Receivable, Net (Details - Aging) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Delinquency Status [Line Items] | ' | ' |
Loans receivable, Current | $6,896 | $7,884 |
Loans receivable, 30 to 89 days delinquent | 195 | 271 |
Loans receivable, 90 to 179 days delinquent | 67 | 109 |
Loans receivable, 180+ days delinquent | 190 | 267 |
One- to four-family | 3,479 | 4,475 |
Home equity | 3,304 | 3,454 |
Consumer and other | 565 | 602 |
Total loans receivable | 7,348 | 8,531 |
Financing Receivable Recorded Investment Nonaccrual Status | 513 | 693 |
Financing Receivable Recorded Investment Nonaccrual Status, Decrease | 180 | ' |
Loans Held for Sale, Mortgages, Nonaccrual Status | 377 | ' |
Bankruptcy Loans, Performing, Recorded Investment, All | ' | 238 |
One- To Four-Family [Member] | ' | ' |
Financing Receivable, Recorded Investment, Delinquency Status [Line Items] | ' | ' |
Loans receivable, Current | 3,180 | 3,988 |
Loans receivable, 30 to 89 days delinquent | 123 | 190 |
Loans receivable, 90 to 179 days delinquent | 27 | 70 |
Loans receivable, 180+ days delinquent | 149 | 227 |
Financing Receivable Recorded Investment Nonaccrual Status | 316 | 526 |
Home Equity [Member] | ' | ' |
Financing Receivable, Recorded Investment, Delinquency Status [Line Items] | ' | ' |
Loans receivable, Current | 3,163 | 3,309 |
Loans receivable, 30 to 89 days delinquent | 62 | 69 |
Loans receivable, 90 to 179 days delinquent | 38 | 36 |
Loans receivable, 180+ days delinquent | 41 | 40 |
Financing Receivable Recorded Investment Nonaccrual Status | 195 | 164 |
Consumer And Other [Member] | ' | ' |
Financing Receivable, Recorded Investment, Delinquency Status [Line Items] | ' | ' |
Loans receivable, Current | 553 | 587 |
Loans receivable, 30 to 89 days delinquent | 10 | 12 |
Loans receivable, 90 to 179 days delinquent | 2 | 3 |
Loans receivable, 180+ days delinquent | 0 | 0 |
Financing Receivable Recorded Investment Nonaccrual Status | $2 | $3 |
Loans_Receivable_Net_Details_A1
Loans Receivable, Net (Details - Allowance) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Financing Receivables, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan losses, beginning of period | $453 | $481 |
Provision for loan losses | 4 | 43 |
Charge-offs | -72 | -93 |
Recoveries | 18 | 24 |
Charge-offs, net | -54 | -69 |
Charge-offs, Loans transferred to Held-for-Sale | 42 | ' |
Allowance for loan losses, end of period | 403 | 455 |
One- To Four-Family [Member] | ' | ' |
Financing Receivables, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan losses, beginning of period | 102 | 184 |
Provision for loan losses | -18 | -16 |
Charge-offs | -43 | -19 |
Recoveries | 11 | 12 |
Charge-offs, net | -32 | -7 |
Allowance for loan losses, end of period | 52 | 161 |
Home Equity [Member] | ' | ' |
Financing Receivables, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan losses, beginning of period | 326 | 257 |
Provision for loan losses | 20 | 55 |
Charge-offs | -24 | -57 |
Recoveries | 5 | 8 |
Charge-offs, net | -19 | -49 |
Allowance for loan losses, end of period | 327 | 263 |
Consumer And Other [Member] | ' | ' |
Financing Receivables, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan losses, beginning of period | 25 | 40 |
Provision for loan losses | 2 | 4 |
Charge-offs | -5 | -17 |
Recoveries | 2 | 4 |
Charge-offs, net | -3 | -13 |
Allowance for loan losses, end of period | $24 | $31 |
Loans_Receivable_Net_Details_T
Loans Receivable, Net (Details - TDRs Accrual and Nonaccrual) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Impaired Loans, Accrual and Nonaccrual Status [Line Items] | ' | ' |
Accrual TDRs | $257,000,000 | $950,000,000 |
Nonaccrual TDRs, Current | 176,000,000 | 149,000,000 |
Nonaccrual TDRs, 30-89 Days Delinquent | 36,000,000 | 119,000,000 |
Nonaccrual TDRs, 90+ Days Delinquent | 84,000,000 | 195,000,000 |
Recorded Investment in TDRs | 553,000,000 | 1,413,000,000 |
One- To Four-Family [Member] | ' | ' |
Financing Receivable, Impaired Loans, Accrual and Nonaccrual Status [Line Items] | ' | ' |
Accrual TDRs | 125,000,000 | 774,000,000 |
Nonaccrual TDRs, Current | 119,000,000 | 127,000,000 |
Nonaccrual TDRs, 30-89 Days Delinquent | 21,000,000 | 102,000,000 |
Nonaccrual TDRs, 90+ Days Delinquent | 56,000,000 | 169,000,000 |
Recorded Investment in TDRs | 321,000,000 | 1,172,000,000 |
TDR unpaid principal balance | 300,000,000 | 1,200,000,000 |
Home Equity [Member] | ' | ' |
Financing Receivable, Impaired Loans, Accrual and Nonaccrual Status [Line Items] | ' | ' |
Accrual TDRs | 132,000,000 | 176,000,000 |
Nonaccrual TDRs, Current | 57,000,000 | 22,000,000 |
Nonaccrual TDRs, 30-89 Days Delinquent | 15,000,000 | 17,000,000 |
Nonaccrual TDRs, 90+ Days Delinquent | 28,000,000 | 26,000,000 |
Recorded Investment in TDRs | $232,000,000 | $241,000,000 |
Loans_Receivable_Net_Details_T1
Loans Receivable, Net (Details - TDRs Average Investment and Income) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Average Recorded Investment And Interest Income Recognized [Line Items] | ' | ' |
TDRs, Average Recorded Investment | $1,391 | $1,502 |
TDRs, Interest Income Recognized | 12 | 13 |
One- To Four-Family [Member] | ' | ' |
Average Recorded Investment And Interest Income Recognized [Line Items] | ' | ' |
TDRs, Average Recorded Investment | 1,154 | 1,221 |
TDRs, Interest Income Recognized | 8 | 8 |
Home Equity [Member] | ' | ' |
Average Recorded Investment And Interest Income Recognized [Line Items] | ' | ' |
TDRs, Average Recorded Investment | 237 | 281 |
TDRs, Interest Income Recognized | $4 | $5 |
Loans_Receivable_Net_Details_T2
Loans Receivable, Net (Details - TDRs Specific Valuation Allowance) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ' | ' |
Recorded Investment in TDRs | $553 | $1,413 |
One- To Four-Family [Member] | ' | ' |
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ' | ' |
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 97 | 403 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 224 | 769 |
Recorded Investment in TDRs | 321 | 1,172 |
Impaired Financing Receivable, Related Allowance | 15 | 60 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 82 | 343 |
Impaired Financing Receivable, with No Related Allowance, Net Investment | 224 | 769 |
Impaired Financing Receivables, Net Investment, Total | 306 | 1,112 |
Home Equity [Member] | ' | ' |
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ' | ' |
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 135 | 140 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 97 | 101 |
Recorded Investment in TDRs | 232 | 241 |
Impaired Financing Receivable, Related Allowance | 60 | 64 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 75 | 76 |
Impaired Financing Receivable, with No Related Allowance, Net Investment | 97 | 101 |
Impaired Financing Receivables, Net Investment, Total | $172 | $177 |
Loans_Receivable_Net_Details_M
Loans Receivable, Net (Details - Modifications Types and Financial Impact) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
loan | loan | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled Debt Restructurings - Modifications, Number of Contracts | 79 | 159 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Forgiven | $1 | $8 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Deferred | 0 | 2 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Re-age, Extension, and Interest Capitalization | 6 | 21 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Other Concession | 3 | 4 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Other Concessions | 5 | 6 |
Troubled Debt Restructurings - Modifications, Total | 15 | 41 |
Financial Impact, Troubled Debt Restructurings - Modifications, Principal Forgiven | 0 | 3 |
One- To Four-Family [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled Debt Restructurings - Modifications, Number of Contracts | 33 | 93 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Forgiven | 1 | 8 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Deferred | 0 | 2 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Re-age, Extension, and Interest Capitalization | 4 | 20 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Other Concession | 2 | 1 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Other Concessions | 4 | 5 |
Troubled Debt Restructurings - Modifications, Total | 11 | 36 |
Financial Impact, Troubled Debt Restructurings - Modifications, Principal Forgiven | 0 | 3 |
Financial Impact, Troubled Debt Restructurings - Modifications, Pre-Modification Weighted Average Interest Rate | 4.80% | 5.20% |
Financial Impact, Troubled Debt Restructurings - Modifications, Post-Modification Weighted Average Interest Rate | 2.70% | 2.30% |
Home Equity [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled Debt Restructurings - Modifications, Number of Contracts | 46 | 66 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Forgiven | 0 | 0 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Deferred | 0 | 0 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Re-age, Extension, and Interest Capitalization | 2 | 1 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Other Concession | 1 | 3 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Other Concessions | 1 | 1 |
Troubled Debt Restructurings - Modifications, Total | 4 | 5 |
Financial Impact, Troubled Debt Restructurings - Modifications, Principal Forgiven | $0 | $0 |
Financial Impact, Troubled Debt Restructurings - Modifications, Pre-Modification Weighted Average Interest Rate | 4.30% | 4.50% |
Financial Impact, Troubled Debt Restructurings - Modifications, Post-Modification Weighted Average Interest Rate | 2.00% | 1.30% |
Loans_Receivable_Net_Details_M1
Loans Receivable, Net (Details - Modifications Subsequent Defaults) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
loan | loan | |
Modifications That Subsequently Defaulted [Line Items] | ' | ' |
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | 26 | 78 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | $7 | $20 |
One- To Four-Family [Member] | ' | ' |
Modifications That Subsequently Defaulted [Line Items] | ' | ' |
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | 18 | 54 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | 7 | 19 |
Troubled Debt Restructurings - Modifications that Subsequently Defaulted That Were Classified As Current Year End | 2 | 3 |
Home Equity [Member] | ' | ' |
Modifications That Subsequently Defaulted [Line Items] | ' | ' |
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | 8 | 24 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | 0 | 1 |
Troubled Debt Restructurings - Modifications that Subsequently Defaulted That Were Classified As Current Year End (Less Than) | $1 | $1 |
Loans_Receivable_Net_Details_M2
Loans Receivable, Net (Details - Modifications) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Financing Receivable, Trouble Debt Restructuring, Modifications [Line Items] | ' | ' |
Troubled Debt Restructurings - Modifications, Current | $316 | $979 |
Troubled Debt Restructurings - Modifications, 30-89 Days Delinquent | 24 | 105 |
Troubled Debt Restructurings - Modifications, 90-179 Days Delinquent | 10 | 43 |
Troubled Debt Restructurings - Modifications, 180+ Days Delinquent | 17 | 97 |
Total Recorded Investment in Troubled Debt Restructurings - Modifications | 367 | 1,224 |
One- To Four-Family [Member] | ' | ' |
Financing Receivable, Trouble Debt Restructuring, Modifications [Line Items] | ' | ' |
Troubled Debt Restructurings - Modifications, Current | 161 | 817 |
Troubled Debt Restructurings - Modifications, 30-89 Days Delinquent | 12 | 92 |
Troubled Debt Restructurings - Modifications, 90-179 Days Delinquent | 4 | 39 |
Troubled Debt Restructurings - Modifications, 180+ Days Delinquent | 8 | 88 |
Total Recorded Investment in Troubled Debt Restructurings - Modifications | 185 | 1,036 |
Home Equity [Member] | ' | ' |
Financing Receivable, Trouble Debt Restructuring, Modifications [Line Items] | ' | ' |
Troubled Debt Restructurings - Modifications, Current | 155 | 162 |
Troubled Debt Restructurings - Modifications, 30-89 Days Delinquent | 12 | 13 |
Troubled Debt Restructurings - Modifications, 90-179 Days Delinquent | 6 | 4 |
Troubled Debt Restructurings - Modifications, 180+ Days Delinquent | 9 | 9 |
Total Recorded Investment in Troubled Debt Restructurings - Modifications | $182 | $188 |
Loans_Receivable_Net_Details_T3
Loans Receivable, Net (Details - Textuals) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Loans and Leases Receivable Disclosure [Abstract] | ' | ' | ' |
Transfer of Portfolio Loans and Leases to Held-for-sale | $795,000,000 | $41,000,000 | ' |
Loans Pledged Federal Home Loan Bank | 6,500,000,000 | ' | 6,800,000,000 |
Loans Pledged Federal Reserve Bank | 600,000,000 | ' | 600,000,000 |
Real Estate Acquired Through Foreclosure | 36,000,000 | ' | 50,000,000 |
Mortgage Loans in Process of Foreclosure, Amount | 175,000,000 | ' | 199,000,000 |
Allowance For Credit Losses, Qualitative Component | 62,000,000 | ' | 62,000,000 |
Third Party Mortgage Originators Repurchase Settlement, Count | ' | 2 | ' |
Repurchase Settlements | 11,000,000 | 13,000,000 | ' |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $75,000,000 | ' | $124,000,000 |
Accounting_for_Derivative_Inst2
Accounting for Derivative Instruments and Hedging Activities (Details - Fair Value of Derivatives) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Notional And Fair Value of Interest Rate Derivatives [Line Items] | ' | ' |
Derivative, Notional Amount | $4,163 | $4,919 |
Interest Rate Cash Flow Hedge Asset At Fair Value | 20 | 27 |
Interest Rate Cash Flow Hedge Liability At Fair Value | -139 | -168 |
Interest Rate Cash Flow Hedge Derivative At Fair Value Net | -119 | -141 |
Derivative assets | 66 | 107 |
Derivative liabilities | -144 | -169 |
Total Derivatives Designated As Hedging Instruments, Net | -78 | -62 |
Pay Fixed Rate Swaps [Member] | ' | ' |
Notional And Fair Value of Interest Rate Derivatives [Line Items] | ' | ' |
Interest Rate Fair Value Hedge Asset At Fair Value | 46 | 80 |
Interest Rate Fair Value Hedge Liability At Fair Value | -5 | -1 |
Interest Rate Fair Value Hedge Derivative At Fair Value Net | 41 | 79 |
Interest Rate Cash Flow Hedge Asset At Fair Value | 13 | 19 |
Interest Rate Cash Flow Hedge Liability At Fair Value | -139 | -168 |
Interest Rate Cash Flow Hedge Derivative At Fair Value Net | -126 | -149 |
Purchased Options [Member] | ' | ' |
Notional And Fair Value of Interest Rate Derivatives [Line Items] | ' | ' |
Interest Rate Cash Flow Hedge Asset At Fair Value | 7 | 8 |
Interest Rate Cash Flow Hedge Liability At Fair Value | 0 | 0 |
Interest Rate Cash Flow Hedge Derivative At Fair Value Net | 7 | 8 |
Cash Flow Hedging [Member] | ' | ' |
Notional And Fair Value of Interest Rate Derivatives [Line Items] | ' | ' |
Derivative, Notional Amount | 2,850 | 3,305 |
Cash Flow Hedging [Member] | Pay Fixed Rate Swaps [Member] | ' | ' |
Notional And Fair Value of Interest Rate Derivatives [Line Items] | ' | ' |
Derivative, Notional Amount | 2,025 | 2,480 |
Cash Flow Hedging [Member] | Purchased Options [Member] | ' | ' |
Notional And Fair Value of Interest Rate Derivatives [Line Items] | ' | ' |
Derivative, Notional Amount | 825 | 825 |
Fair Value Hedging [Member] | Pay Fixed Rate Swaps [Member] | ' | ' |
Notional And Fair Value of Interest Rate Derivatives [Line Items] | ' | ' |
Derivative, Notional Amount | $1,313 | $1,614 |
Accounting_for_Derivative_Inst3
Accounting for Derivative Instruments and Hedging Activities (Details - Cash Flow Hedge) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Impact On Accumulated Other Comprehensive Gain Loss Net Of Tax And Consolidated Statement Of Income [Abstract] | ' | ' | ' | ' | ||
Gains (losses) on derivatives recognized in OCI (effective portion), net of tax | ($16) | [1] | $6 | [1] | ' | ' |
Losses reclassified from AOCI into earnings (effective portion), net of tax | -21 | -20 | ' | ' | ||
Cash flow hedge ineffectiveness (less than) | 1 | 1 | ' | ' | ||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | -123 | ' | ' | ' | ||
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge | '9 years | ' | ' | ' | ||
Accumulated other comprehensive loss balance (net of tax) related to: | ' | ' | ' | ' | ||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | -293 | -426 | -298 | -452 | ||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | ' | ' | ' | ' | ||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | -293 | -426 | -298 | -452 | ||
Cash Flow Hedging [Member] | ' | ' | ' | ' | ||
Accumulated other comprehensive loss balance (net of tax) related to: | ' | ' | ' | ' | ||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | -293 | ' | -298 | ' | ||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Loss, before Tax | -470 | ' | -478 | ' | ||
Tax benefit | 177 | ' | 180 | ' | ||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | -293 | ' | -298 | ' | ||
Cash Flow Hedging [Member] | Repurchase agreements | ' | ' | ' | ' | ||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Loss, before Tax | -376 | ' | -379 | ' | ||
Cash Flow Hedging [Member] | FHLB advances | ' | ' | ' | ' | ||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Loss, before Tax | -94 | ' | -99 | ' | ||
Discontinued Hedges | Cash Flow Hedging [Member] | ' | ' | ' | ' | ||
Accumulated other comprehensive loss balance (net of tax) related to: | ' | ' | ' | ' | ||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | -196 | ' | -201 | ' | ||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | ' | ' | ' | ' | ||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | -196 | ' | -201 | ' | ||
Active hedges | Cash Flow Hedging [Member] | ' | ' | ' | ' | ||
Accumulated other comprehensive loss balance (net of tax) related to: | ' | ' | ' | ' | ||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | -97 | ' | -97 | ' | ||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | ' | ' | ' | ' | ||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | ($97) | ' | ($97) | ' | ||
[1] | Amounts are net of benefit from incomes taxes of $11 million and provision for income taxes of $4 million for the three months ended March 31, 2014 and 2013, respectively. |
Accounting_for_Derivative_Inst4
Accounting for Derivative Instruments and Hedging Activities (Details - Fair Value Hedge) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Fair Value Hedge, Hedging Instrument | ($42) | $16 |
Fair VAlue Hedge, Hedged Item | 38 | -16 |
Fair Value Hedge, Hedge Ineffectiveness | -4 | 0 |
Agency debentures [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Fair Value Hedge, Hedging Instrument | -31 | 16 |
Fair VAlue Hedge, Hedged Item | 27 | -16 |
Fair Value Hedge, Hedge Ineffectiveness | -4 | 0 |
Agency residential mortgage-backed securities and CMOs [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Fair Value Hedge, Hedging Instrument | -11 | 0 |
Fair VAlue Hedge, Hedged Item | 11 | 0 |
Fair Value Hedge, Hedge Ineffectiveness | $0 | $0 |
Securities_Sold_Under_Agreemen2
Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Debt, Fiscal Year Maturity [Line Items] | ' | ' |
Debt, Maturities, Repayments of Principal in Next Twelve Months, Weighted Average Interest Rate | 0.33% | ' |
Debt, Maturities, Repayments of Principal in Year Two, Weighted Average Interest Rate | 0.83% | ' |
Debt, Maturities, Repayments of Principal in Year Three, Weighted Average Interest Rate | 0.86% | ' |
Debt, Maturities, Repayments of Principal in Year Four, Weighted Average Interest Rate | 0.40% | ' |
Debt, Maturities, Repayments of Principal after Year Five, Weighted Average Interest Rate | 2.92% | ' |
Debt, Prior to Adjustments, Weighted Average Interest Rate | 0.62% | ' |
Debt, Weighted Average Interest Rate | 0.62% | 0.72% |
Repurchase Agreements [Member] | ' | ' |
Debt, Fiscal Year Maturity [Line Items] | ' | ' |
Debt, Maturities, Repayments of Principal in Next Twelve Months | 3,595,000,000 | ' |
Debt, Maturities, Repayments of Principal in Year Two | 350,000,000 | ' |
Debt, Maturities, Repayments of Principal in Year Three | 400,000,000 | ' |
Debt, Maturities, Repayments of Principal in Year Four | 0 | ' |
Debt, Maturities, Repayments of Principal after Year Five | 0 | ' |
Debt, Prior to Adjustments | 4,345,000,000 | ' |
Debt, Fair Value Hedge Adjustments | 0 | ' |
Deferred Costs | 0 | ' |
Debt | 4,345,000,000 | 4,543,000,000 |
Securities Sold Under Agreements To Repurchase Maximum Month end Outstanding Amount | 4,900,000,000 | 4,600,000,000 |
Federal Home Loan Bank Advances [Member] | ' | ' |
Debt, Fiscal Year Maturity [Line Items] | ' | ' |
Debt, Maturities, Repayments of Principal in Next Twelve Months | 270,000,000 | ' |
Debt, Maturities, Repayments of Principal in Year Two | 0 | ' |
Debt, Maturities, Repayments of Principal in Year Three | 250,000,000 | ' |
Debt, Maturities, Repayments of Principal in Year Four | 400,000,000 | ' |
Debt, Maturities, Repayments of Principal after Year Five | 0 | ' |
Debt, Prior to Adjustments | 920,000,000 | ' |
Debt, Fair Value Hedge Adjustments | 27,000,000 | ' |
Deferred Costs | -91,000,000 | ' |
Debt | 856,000,000 | 851,000,000 |
Miscellaneous Other Borrowings [Member] | ' | ' |
Debt, Fiscal Year Maturity [Line Items] | ' | ' |
Debt, Maturities, Repayments of Principal in Next Twelve Months | 1,000,000 | ' |
Debt, Maturities, Repayments of Principal in Year Two | 1,000,000 | ' |
Debt, Maturities, Repayments of Principal in Year Three | 1,000,000 | ' |
Debt, Maturities, Repayments of Principal in Year Four | 0 | ' |
Debt, Maturities, Repayments of Principal after Year Five | 428,000,000 | ' |
Debt, Prior to Adjustments | 431,000,000 | ' |
Debt, Fair Value Hedge Adjustments | 0 | ' |
Deferred Costs | 0 | ' |
Debt | 431,000,000 | 428,000,000 |
Total Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings [Member] | ' | ' |
Debt, Fiscal Year Maturity [Line Items] | ' | ' |
Debt, Maturities, Repayments of Principal in Next Twelve Months | 3,866,000,000 | ' |
Debt, Maturities, Repayments of Principal in Year Two | 351,000,000 | ' |
Debt, Maturities, Repayments of Principal in Year Three | 651,000,000 | ' |
Debt, Maturities, Repayments of Principal in Year Four | 400,000,000 | ' |
Debt, Maturities, Repayments of Principal after Year Five | 428,000,000 | ' |
Debt, Prior to Adjustments | 5,696,000,000 | ' |
Debt, Fair Value Hedge Adjustments | 27,000,000 | ' |
Deferred Costs | -91,000,000 | ' |
Debt | 5,632,000,000 | 5,822,000,000 |
Securities_Sold_Under_Agreemen3
Securities Sold Under Agreements To Repurchase And FHLB Advances And Other Borrowings (Details - Textuals) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Extinguishment of Debt [Line Items] | ' | ' |
Losses on early extinguishment of debt | $12 | $0 |
Securities Sold under Agreements to Repurchase [Member] | ' | ' |
Extinguishment of Debt [Line Items] | ' | ' |
Losses on early extinguishment of debt | 12 | ' |
Extinguishment of debt, amount | $100 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ||
Accumulated other comprehensive loss, available for sale securities adjustment, net of tax, beginning balance | ($160) | $137 | ||
Change in other comprehensive income available for sale before reclassifications | 81 | -5 | ||
Reclassification into earnings, net(4) | -12 | [1] | -10 | [1] |
Net change from available-for-sale securities | 69 | -15 | ||
Accumulated other comprehensive loss, available for sale securities adjustment, net of tax, ending balance | -91 | 122 | ||
Accumulated other comprehensive loss, cash flow hedging instruments, net of tax, beginning balance | -298 | -452 | ||
Unrealized gains (losses), net(5) | -16 | [2] | 6 | [2] |
Reclassification into earnings, net(6) | 21 | [3] | 20 | [3] |
Net change from cash flow hedging instruments | 5 | 26 | ||
Accumulated other comprehensive loss, cash flow hedging instruments, net of tax, ending balance | -293 | -426 | ||
Accumulated other comprehensive loss, foreign currency translation, net of tax, beginning balance | 5 | 5 | ||
Foreign currency translation gains (losses) before reclassifications, net | 0 | 0 | ||
Foreign currency translation gains, net | 0 | 0 | ||
Accumulated other comprehensive loss, foreign currency translation, net of tax, ending balance | 5 | 5 | ||
Accumulated other comprehensive loss, beginning balance | -453 | -310 | ||
Other comprehensive income (loss) before reclassifications total, net | 65 | 1 | ||
Amounts reclassified from accumulated other comprehensive loss total, net | 9 | 10 | ||
Other comprehensive income | 74 | 11 | ||
Accumulated other comprehensive loss, ending balance | -379 | -299 | ||
Reclassifications out of Accumulated Other Comprehensive Income [Abstract] | ' | ' | ||
Gains on loans and securities net other comprehensive income | 19 | 16 | ||
Income tax expense benefit available for sale | -7 | -6 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | -12 | [1] | -10 | [1] |
Other comprehensive income operating interest income cash flow hedge | 0 | 2 | ||
Other comprehensive income operating interest expense cash flow hedge | -35 | -35 | ||
Other comprehensive income loss reclassification adjustment on derivatives included in net income before tax cash flow hedge | -35 | -33 | ||
Income tax expense benefit cash flow hedge | 14 | 13 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $21 | [3] | $20 | [3] |
[1] | Amounts are net of provision for income taxes of $7 million and $6 million for the three months ended March 31, 2014 and 2013, respectively. | |||
[2] | Amounts are net of benefit from incomes taxes of $11 million and provision for income taxes of $4 million for the three months ended March 31, 2014 and 2013, respectively. | |||
[3] | Amounts are net of benefit from income taxes of $14 million and $13 million for the three months ended March 31, 2014 and 2013, respectively. |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Basic: | ' | ' |
Net income | $97 | $35 |
Basic weighted-average shares outstanding (in thousands) | 288,051,000 | 286,626,000 |
Basic earnings per share (in dollars per share) | $0.34 | $0.12 |
Diluted: | ' | ' |
Net income | $97 | $35 |
Basic weighted-average shares outstanding (in thousands) | 288,051,000 | 286,626,000 |
Effect of dilutive securities: | ' | ' |
Weighted-average convertible debentures (in thousands) | 4,080,000 | 4,125,000 |
Weighted-average options and restricted stock issued to employees (in thousands) | 1,688,000 | 945,000 |
Diluted weighted-average shares outstanding (in thousands) | 293,819,000 | 291,696,000 |
Diluted earnings per share (in dollars per share) | $0.33 | $0.12 |
Antidilutive Securities Excluded From Computations Of Earnings Per Share [Abstract] | ' | ' |
Other stock options and restricted stock awards and units | 700,000 | 2,700,000 |
Regulatory_Requirements_Detail
Regulatory Requirements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Minimum Net Capital Required [Abstract] | ' | ' |
Minimum percentage of net capital required for broker dealer subsidiary aggregate indebtedness | 6.67% | ' |
Alternative net capital requirement | $250,000 | ' |
Minimum percentage of aggregate debit balances | 2.00% | ' |
Broker Dealer Subsidiaries Net Capital [Line Items] | ' | ' |
Required Net Capital | 162,000,000 | 147,000,000 |
Net Capital | 1,056,000,000 | 1,020,000,000 |
Excess Net Capital | 894,000,000 | 873,000,000 |
E TRADE Bank [Member] | ' | ' |
Total capital | ' | ' |
Total capital | 4,429,000,000 | 4,331,000,000 |
Capital required to be well capitalized | 1,844,000,000 | 1,786,000,000 |
Excess capital to be well capitalized | 2,585,000,000 | 2,545,000,000 |
Total capital to risk weighted assets | 24.02% | 24.25% |
Total capital required to be well capitalized to risk weighted assets | 10.00% | 10.00% |
Tier I capital | ' | ' |
Tier 1 risk based capital | 4,196,000,000 | 4,105,000,000 |
Tier 1 risk based capital required to be well capitalized | 1,106,000,000 | 1,072,000,000 |
Excess Tier 1 risk based capital to well capitalized | 3,090,000,000 | 3,033,000,000 |
Tier 1 capital to risk weighted assets | 22.76% | 22.98% |
Tier 1 capital required to be well capitalized to risk weighted assets | 6.00% | 6.00% |
Tier I leverage | ' | ' |
Tier 1 leverage capital | 4,196,000,000 | 4,105,000,000 |
Tier 1 leverage capital required to be well capitalized | 2,169,000,000 | 2,158,000,000 |
Excess Tier 1 leverage capital to well capitalized | 2,027,000,000 | 1,947,000,000 |
Tier 1 leverage capital to adjusted assets | 9.67% | 9.51% |
Tier 1 leverage capital required to be well capitalized to adjusted assets | 5.00% | 5.00% |
E TRADE Clearing [Member] | ' | ' |
Broker Dealer Subsidiaries Net Capital [Line Items] | ' | ' |
Required Net Capital | 160,000,000 | 144,000,000 |
Net Capital | 726,000,000 | 715,000,000 |
Excess Net Capital | 566,000,000 | 571,000,000 |
E TRADE Securities [Member] | ' | ' |
Broker Dealer Subsidiaries Net Capital [Line Items] | ' | ' |
Required Net Capital | 250,000 | 250,000 |
Net Capital | 315,000,000 | 261,000,000 |
Excess Net Capital | 315,000,000 | 261,000,000 |
G1 Execution Services [Member] | ' | ' |
Broker Dealer Subsidiaries Net Capital [Line Items] | ' | ' |
Required Net Capital | ' | 1,000,000 |
Net Capital | ' | 22,000,000 |
Excess Net Capital | ' | 21,000,000 |
Other Broker Dealers [Member] | ' | ' |
Broker Dealer Subsidiaries Net Capital [Line Items] | ' | ' |
Required Net Capital | 2,000,000 | 2,000,000 |
Net Capital | 15,000,000 | 22,000,000 |
Excess Net Capital | $13,000,000 | $20,000,000 |
Commitments_Contingencies_and_1
Commitments, Contingencies and Other Regulatory Matters (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2003 | Apr. 30, 2013 | Apr. 18, 2014 | 2-May-14 | |
Unfunded Commitments to Extend Credit [Member] | Axajo Complaint [Member] | John Scranton Complaint [Member] | Providence, Rhode Island Complaint [Member] | American European Insurance Company Complaint [Member] | ||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Loss Contingency, Damages Awarded, Value | ' | ' | $1,000,000 | ' | ' | ' |
Alleged Minimum Amount Company Would Exercise Options | ' | ' | ' | 0.01 | ' | ' |
Loss Contingency, Number of Defendants | ' | ' | ' | ' | 41 | 42 |
Commitments to fund partnerships | 1,000,000 | ' | ' | ' | ' | ' |
Time deposit maturities, year one | 43,000,000 | ' | ' | ' | ' | ' |
Supply Commitment [Line Items] | ' | ' | ' | ' | ' | ' |
Unfunded Commitments To Extend Credit | ' | 224,000,000 | ' | ' | ' | ' |
Trust preferred securities contractual time period | '30 years | ' | ' | ' | ' | ' |
Liquidation amount per trust preferred security | 1,000 | ' | ' | ' | ' | ' |
Estimated maximum potential liability trust preferred securities | $436,000,000 | ' | ' | ' | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net operating interest income | $266 | $241 | ' |
Total non-interest income | 209 | 179 | ' |
Total net revenue | 475 | 420 | ' |
Provision for loan losses | 4 | 43 | ' |
Total operating expense | 290 | 295 | ' |
Income (loss) before other income (expense) and income taxes | 181 | 82 | ' |
Total other income (expense) | -37 | -25 | ' |
Income (loss) before income taxes | 144 | 57 | ' |
Income tax expense | 47 | 22 | ' |
Net income | 97 | 35 | ' |
Total assets | 46,438 | ' | 46,280 |
Corporate/Other | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net operating interest income | 0 | 0 | ' |
Total non-interest income | 0 | 0 | ' |
Total net revenue | 0 | 0 | ' |
Total operating expense | 54 | 46 | ' |
Income (loss) before other income (expense) and income taxes | -54 | -46 | ' |
Total other income (expense) | -37 | -25 | ' |
Income (loss) before income taxes | -91 | -71 | ' |
Total assets | 421 | ' | 676 |
Trading And Investing | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net operating interest income | 143 | 134 | ' |
Total non-interest income | 193 | 163 | ' |
Total net revenue | 336 | 297 | ' |
Total operating expense | 195 | 199 | ' |
Income (loss) before other income (expense) and income taxes | 141 | 98 | ' |
Income (loss) before income taxes | 141 | 98 | ' |
Total assets | 11,613 | ' | 10,820 |
Balance Sheet Management | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net operating interest income | 123 | 107 | ' |
Total non-interest income | 16 | 16 | ' |
Total net revenue | 139 | 123 | ' |
Provision for loan losses | 4 | 43 | ' |
Total operating expense | 41 | 50 | ' |
Income (loss) before other income (expense) and income taxes | 94 | 30 | ' |
Income (loss) before income taxes | 94 | 30 | ' |
Total assets | $34,404 | ' | $34,784 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
In Billions, unless otherwise specified | Apr. 22, 2014 |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Loans held-for-sale, sold | $0.80 |