Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 19, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Entity Registrant Name | E TRADE FINANCIAL CORP | ||
Entity Central Index Key | 1015780 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Common stock shares outstanding | 289,824,138 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $4.40 |
CONSOLIDATED_STATEMENT_OF_INCO
CONSOLIDATED STATEMENT OF INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||
Operating interest income | $1,293 | $1,220 | $1,371 |
Operating interest expense | -205 | -238 | -286 |
Net operating interest income | 1,088 | 982 | 1,085 |
Commissions | 456 | 420 | 378 |
Fees and service charges | 186 | 155 | 122 |
Principal transactions | 10 | 73 | 93 |
Gains on loans and securities, net | 36 | 61 | 201 |
Other-than-temporary impairment (OTTI) | 0 | -1 | -20 |
Less: noncredit portion of OTTI recognized into (out of) other comprehensive income (loss) (before tax) | 0 | -2 | 3 |
Net impairment | 0 | -3 | -17 |
Other revenues | 38 | 35 | 38 |
Total non-interest income | 726 | 741 | 815 |
Total net revenue | 1,814 | 1,723 | 1,900 |
Provision for loan losses | 36 | 143 | 355 |
Operating expense: | |||
Compensation and benefits | 412 | 363 | 353 |
Advertising and market development | 120 | 108 | 139 |
Clearing and servicing | 94 | 124 | 129 |
FDIC insurance premiums | 79 | 104 | 117 |
Professional services | 112 | 85 | 86 |
Occupancy and equipment | 79 | 73 | 74 |
Communications | 71 | 69 | 73 |
Depreciation and amortization | 78 | 89 | 91 |
Amortization of other intangibles | 22 | 24 | 25 |
Impairment of goodwill | 0 | 142 | 0 |
Facility restructuring and other exit activities | 8 | 28 | 8 |
Other operating expenses | 70 | 66 | 67 |
Total operating expense | 1,145 | 1,275 | 1,162 |
Income before other income (expense) and income tax expense (benefit) | 633 | 305 | 383 |
Other income (expense): | |||
Corporate interest expense | -113 | -114 | -180 |
Losses on early extinguishment of debt | -71 | 0 | -335 |
Equity in income of investments and other | 3 | 4 | 1 |
Total other income (expense) | -181 | -110 | -514 |
Income (loss) before income tax expense (benefit) | 452 | 195 | -131 |
Income tax expense (benefit) | 159 | 109 | -18 |
Net income (loss) | $293 | $86 | ($113) |
Basic earnings (loss) per share (in dollars per share) | $1.02 | $0.30 | ($0.39) |
Diluted earnings (loss) per share (in dollars per share) | $1 | $0.29 | ($0.39) |
Shares used in computation of per share data: | |||
Basic (in thousands) | 288,705 | 286,991 | 285,748 |
Diluted (in thousands) | 294,103 | 292,589 | 285,748 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net income (loss) | $293 | $86 | ($113) | |||
Available-for-sale securities: | ||||||
OTTI, net(1) | 0 | [1] | 0 | [1] | 12 | [1] |
Noncredit portion of OTTI reclassification (into) out of other comprehensive income (loss), net(2) | 0 | [2] | 1 | [2] | -2 | [2] |
Unrealized gains (losses), net(3) | 193 | [3] | -261 | [3] | 187 | [3] |
Reclassification into earnings, net(4) | -26 | [4] | -37 | [4] | -128 | [4] |
Net change from available-for-sale securities | 167 | -297 | 69 | |||
Cash flow hedging instruments: | ||||||
Unrealized gains (losses), net(5) | -39 | [5] | 67 | [5] | -72 | [5] |
Reclassification into earnings, net(6) | 76 | [6] | 87 | [6] | 78 | [6] |
Net change from cash flow hedging instruments | 37 | 154 | 6 | |||
Foreign currency translation gains, net | 0 | 0 | 2 | |||
Other comprehensive income (loss) | 204 | -143 | 77 | |||
Comprehensive income (loss) | $497 | ($57) | ($36) | |||
[1] | (1)Amounts are net of benefit from income taxes of $0, less than $1 million and $8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
[2] | Amounts are net of benefit from income taxes of $0, less than $1 million and $1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
[3] | Amounts are net of provision for income taxes of $117 million for the year ended December 31, 2014, net of benefit from income taxes of $156 million for the year ended December 31, 2013, and net of provision for income taxes of $112 million for the year ended December 31, 2012. | |||||
[4] | Amounts are net of provision for income taxes of $16 million, $23 million and $79 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
[5] | Amounts are net of benefit from income taxes of $29 million for the year ended December 31, 2014, net of provision for income taxes of $33 million for the year ended December 31, 2013, and net of benefit from income taxes of $41 million for the year ended December 31, 2012. | |||||
[6] | Amounts are net of benefit from income taxes of $49 million, $52 million and $52 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
CONSOLIDATED_STATEMENT_OF_COMP1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Parentheticals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income tax of OTTI, net | $0 | $8,000,000 | |
Income tax of noncredit portion of OTTI reclassification out of (into) other comprehensive income, net | 0 | 1,000,000 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 117,000,000 | -156,000,000 | 112,000,000 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | 16,000,000 | 23,000,000 | 79,000,000 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | -29,000,000 | 33,000,000 | -41,000,000 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax | -49,000,000 | -52,000,000 | -52,000,000 |
Maximum [Member] | |||
Income tax of OTTI, net | 1,000,000 | ||
Income tax of noncredit portion of OTTI reclassification out of (into) other comprehensive income, net | $1,000,000 |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ||
Cash and equivalents | $1,783 | $1,838 |
Cash required to be segregated under federal or other regulations | 555 | 1,066 |
Available-for-sale securities | 12,388 | 13,592 |
Held-to-maturity securities (fair value of $12,476 and $10,092 at December 31, 2014 and 2013, respectively) | 12,248 | 10,181 |
Margin receivables | 7,675 | 6,353 |
Loans receivable, net (net of allowance for loan losses of $404 and $453 at December 31, 2014 and 2013, respectively) | 5,979 | 8,123 |
Investment in FHLB stock | 88 | 61 |
Property and equipment, net | 245 | 237 |
Goodwill | 1,792 | 1,792 |
Other intangibles, net | 194 | 216 |
Other assets | 2,583 | 2,821 |
Total assets | 45,530 | 46,280 |
Liabilities: | ||
Deposits | 24,890 | 25,971 |
Securities sold under agreements to repurchase | 3,672 | 4,543 |
Customer payables | 6,455 | 6,310 |
FHLB advances and other borrowings | 1,299 | 1,279 |
Corporate debt | 1,366 | 1,768 |
Other liabilities | 2,473 | 1,553 |
Total liabilities | 40,155 | 41,424 |
Commitments and contingencies (see Note 21) | ||
Shareholders’ equity: | ||
Common stock, $0.01 par value, shares authorized: 400,000,000 at December 31, 2014 and 2013; shares issued and outstanding: 289,272,576 and 287,357,001 at December 31, 2014 and 2013, respectively | 3 | 3 |
Additional paid-in-capital (APIC) | 7,350 | 7,328 |
Accumulated deficit | -1,729 | -2,022 |
Accumulated other comprehensive loss | -249 | -453 |
Total shareholders’ equity | 5,375 | 4,856 |
Total liabilities and shareholders’ equity | $45,530 | $46,280 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
ASSETS | ||
Held-to-maturity Securities, Fair Value | $12,476 | $10,092 |
Allowance for loan losses | $404 | $453 |
Shareholders’ equity: | ||
Common stock par value | $0.01 | $0.01 |
Common stock shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock shares issued (in shares) | 289,272,576 | 287,357,001 |
Common stock shares outstanding (in shares) | 289,272,576 | 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 |
In Millions, unless otherwise specified | |||||
Balance, at Dec. 31, 2011 | $4,928 | $3 | $7,307 | ($1,995) | ($387) |
Balance, (in shares) at Dec. 31, 2011 | 285 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | -113 | -113 | |||
Other comprehensive income (loss) | 77 | 77 | |||
Exercise of stock options and related tax effects | -5 | -5 | |||
Issuance of restricted stock, net of forfeitures and retirements to pay taxes | -4 | 0 | -4 | ||
Issuance of restricted stock, net of forfeitures and retirements to pay taxes, shares | 1 | ||||
Share-based compensation | 21 | 21 | |||
Balance, at Dec. 31, 2012 | 4,904 | 3 | 7,319 | -2,108 | -310 |
Balance, (in shares) at Dec. 31, 2012 | 286 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 86 | 86 | |||
Other comprehensive income (loss) | -143 | -143 | |||
Exercise of stock options and related tax effects | -4 | -4 | |||
Issuance of restricted stock, net of forfeitures and retirements to pay taxes | -7 | 0 | -7 | ||
Issuance of restricted stock, net of forfeitures and retirements to pay taxes, shares | 1 | ||||
Share-based compensation | 20 | 20 | |||
Balance, at Dec. 31, 2013 | 4,856 | 3 | 7,328 | -2,022 | -453 |
Balance, (in shares) at Dec. 31, 2013 | 287 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 293 | 293 | |||
Other comprehensive income (loss) | 204 | 204 | |||
Conversion of convertible debentures | 5 | 5 | |||
Conversion of convertible debentures, shares | 1 | ||||
Exercise of stock options and related tax effects | 6 | 0 | 6 | ||
Exercise of stock options and related tax effects, shares | 0 | ||||
Issuance of restricted stock, net of forfeitures and retirements to pay taxes | -13 | 0 | -13 | ||
Issuance of restricted stock, net of forfeitures and retirements to pay taxes, shares | 1 | ||||
Share-based compensation | 24 | 24 | |||
Balance, at Dec. 31, 2014 | $5,375 | $3 | $7,350 | ($1,729) | ($249) |
Balance, (in shares) at Dec. 31, 2014 | 289 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income (loss) | $293 | $86 | ($113) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Provision for loan losses | 36 | 143 | 355 |
Depreciation and amortization (including discount amortization and accretion) | 331 | 395 | 409 |
Net impairment and gains on loans and securities, net | -36 | -58 | -183 |
Impairment of goodwill | 0 | 142 | 0 |
Equity in income of investments and other | -3 | -4 | -1 |
Losses on early extinguishment of debt | 6 | 135 | |
Share-based compensation | 24 | 20 | 21 |
Deferred taxes | 155 | 107 | -137 |
Other | 1 | -1 | |
Net effect of changes in assets and liabilities: | |||
Decrease (increase) in cash required to be segregated under federal or other regulations | 511 | -689 | 899 |
Increase in margin receivables | -1,322 | -549 | -978 |
Increase (decrease) in customer payables | 145 | 1,345 | -626 |
Proceeds from sales and repayments of loans held-for-sale | 11 | 15 | 343 |
Originations of loans held-for-sale | -332 | ||
Net increase in trading securities | -47 | ||
(Increase) decrease in other assets | -156 | 33 | 265 |
Increase (decrease) in other liabilities | 705 | 131 | -168 |
Net cash provided by (used in) operating activities | 701 | 1,117 | -159 |
Cash flows from investing activities: | |||
Purchases of available-for-sale securities | -1,564 | -7,042 | -10,049 |
Proceeds from sales, maturities of and principal payments on available-for-sale securities | 3,323 | 6,263 | 12,446 |
Purchases of held-to-maturity securities | -3,209 | -2,527 | -4,814 |
Proceeds from maturities of and principal payments on held-to-maturity securities | 1,144 | 1,828 | 1,308 |
Proceeds from sale of loans | 813 | ||
Net decrease in loans receivable | 1,273 | 1,724 | 1,766 |
Capital expenditures for property and equipment | -87 | -47 | -80 |
Proceeds from sale of G1 Execution Services, Inc. | 76 | 0 | 0 |
Cash transferred on sale of G1 Execution Services, Inc. | -9 | ||
Proceeds from sale of real estate owned and repossessed assets | 37 | 62 | 102 |
Net cash flow from derivatives hedging assets | -15 | 19 | -85 |
Other | -69 | 6 | 71 |
Net cash provided by investing activities | 1,713 | 286 | 665 |
Cash flows from financing activities: | |||
Net (decrease) increase in deposits | -1,081 | -2,422 | 1,932 |
Net (decrease) increase in securities sold under agreements to repurchase | -871 | 88 | -561 |
Advances from FHLB | 730 | 2,180 | 2,930 |
Payments on advances from FHLB | -730 | -2,180 | -4,284 |
Net proceeds from issuance of senior notes | 540 | 1,305 | |
Payments on senior and springing lien notes | -940 | -1,174 | |
Net cash flow from derivatives hedging liabilities | -170 | 5 | 25 |
Other | 53 | 2 | -17 |
Net cash (used in) provided by financing activities | -2,469 | -2,327 | 156 |
(Decrease) increase in cash and equivalents | -55 | -924 | 662 |
Cash and equivalents, beginning of period | 1,838 | 2,762 | 2,100 |
Cash and equivalents, end of period | 1,783 | 1,838 | 2,762 |
Supplemental Disclosures [Abstract] | |||
Cash paid for interest | 318 | 277 | 592 |
Cash paid for income taxes, net of refunds | 2 | 6 | |
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 | 53 | 75 | 128 |
Transfers from other real estate owned and repossessed assets to loans | 16 | ||
Conversion of convertible debentures to common stock | 5 | ||
Reclassification of market making business assets and liabilities to business held-for-sale | $79 |
Organization_Basis_of_Presenta
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 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, to retail investors. The Company’s most significant subsidiaries are described below: | ||
• | E*TRADE Securities LLC is a registered broker-dealer and is the primary provider of brokerage products and services to the Company’s customers; | |
• | E*TRADE Clearing LLC is the clearing firm for the Company’s brokerage subsidiaries and its main purpose is to clear and settle securities transactions for customers of E*TRADE Securities LLC; | |
• | E*TRADE Bank is a federally chartered savings bank utilized by E*TRADE's broker-dealers to maximize the value of customer deposits. It provides the Company's customers with FDIC insurance on a certain amount of customer deposits and provides other banking products to its customers; and | |
• | E*TRADE Financial Corporate Services is an operating subsidiary of the parent company and is the provider of software and services for managing equity compensation plans to our corporate customers. | |
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 International Group, LLP. The sale generated cash proceeds of $76 million. | ||
As of December 31, 2014, the Company's two primary U.S. broker-dealers, E*TRADE Clearing LLC and E*TRADE Securities LLC, were operating subsidiaries of E*TRADE Bank. The Company recently received regulatory approval to move both E*TRADE Clearing LLC and E*TRADE Securities LLC out from under E*TRADE Bank. E*TRADE Securities LLC was moved out from under E*TRADE Bank in February 2015 and we plan to move E*TRADE Clearing LLC later in 2015. | ||
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 has the ability to exercise significant influence but in which the Company does not possess control are generally accounted for by the equity method. Entities in which the Company does not have the ability to exercise significant influence are generally carried at cost. However, investments in marketable equity securities where the Company does not have the ability to exercise significant influence over the entities are accounted for as available-for-sale securities. The Company also evaluates its initial and continuing involvement with certain entities to determine if the Company is required to consolidate the entities under the variable interest entity ("VIE") model. This evaluation is based on a qualitative assessment of whether the Company is the primary beneficiary of the VIE, which requires the Company to possess both: 1) the power to direct activities that most significantly impact the economic performance of the VIE; and 2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. | ||
The Company's consolidated financial statements are prepared in accordance with GAAP. Intercompany accounts and transactions are eliminated in consolidation. 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. | ||
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, is related to prior recapitalization transactions and 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 (loss). | ||
Related Parties—Joseph M. Velli, Chairman and CEO of ConvergEx Group, served on the Board of Directors from January 2010 to October 1, 2014. During this period, the Company used ConvergEx Group for clearing and transfer agent services. Payments for these services represented less than 1% of the Company’s total operating expenses for each of the years ended December 31, 2014, 2013 and 2012. | ||
Use of Estimates—Preparing the Company's consolidated financial statements in accordance with GAAP 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—Below are descriptions and accounting policies for certain of the Company’s financial statement categories: | ||
Cash and Equivalents—The Company considers all highly liquid investments with original or remaining maturities of three months or less at the time of purchase that are not required to be segregated under federal or other regulations to be cash and equivalents. Cash and equivalents included $0.9 billion and $1.0 billion at December 31, 2014 and 2013, respectively, of overnight cash deposits, a portion of which the Company is required to maintain with the Federal Reserve Bank. | ||
Cash Required to be Segregated Under Federal or Other Regulations—Certain cash balances that are required to be segregated for the exclusive benefit of the Company’s brokerage customers are included in the cash required to be segregated under federal or other regulations line item. | ||
Available-for-Sale Securities—Available-for-sale securities consist primarily of debt securities and also include equity securities. Securities classified as available-for-sale are carried at fair value, with the unrealized gains and losses, after any applicable hedge accounting adjustments, reflected as a component of accumulated other comprehensive loss, net of tax. Realized and unrealized gains or losses on available-for-sale debt and equity securities are computed using the specific identification method. Interest earned on available-for-sale debt and equity securities is included in operating interest income. Amortization or accretion of premiums and discounts on available-for-sale debt securities are also recognized in operating interest income using the effective interest method over the contractual life of the security. Realized gains and losses on available-for-sale debt and equity securities, other than OTTI, are included in the gains on loans and securities, net line item. Available-for-sale securities that have an unrealized loss (impaired securities) are evaluated for OTTI at each balance sheet date. | ||
Held-to-Maturity Securities—Held-to-maturity securities consist of debt securities, primarily residential mortgage-backed securities and agency debt securities. Held-to-maturity securities are carried at amortized cost based on the Company’s intent and ability to hold these securities to maturity. Interest earned on held-to-maturity debt securities is included in operating interest income. Amortization or accretion of premiums and discounts are also recognized in operating interest income using the effective interest method over the contractual life of the security. Held-to-maturity securities that have an unrecognized loss (impaired securities) are evaluated for OTTI at each balance sheet date in a manner consistent with available-for-sale debt securities. | ||
Margin Receivables—Margin receivables represent credit extended to customers to finance their purchases of securities by borrowing against securities the customers own. Securities owned by customers are held as collateral for amounts due on the margin receivables, the value of which is not reflected in the consolidated balance sheet. The Company is permitted to sell or re-pledge these securities held as collateral and use the securities to enter into securities lending transactions, to collateralize borrowings or for delivery to counterparties to cover customer short positions. 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 $10.8 billion and $9.1 billion at December 31, 2014 and 2013, respectively. Of this amount, $2.9 billion and $1.9 billion had been pledged or sold in connection with securities loans, bank borrowings and deposits with clearing organizations at December 31, 2014 and 2013, respectively. | ||
Loans Receivable, Net—Loans receivable, net consists of real estate and consumer loans that management has the intent and ability to hold for the foreseeable future or until maturity, also known as loans held-for-investment. Loans held-for-investment are carried at amortized cost adjusted for unamortized premiums or discounts on purchased loans, deferred fees or costs on originated loans, net charge-offs, and the allowance for loan losses. Premiums or discounts on purchased loans and deferred fees or costs on originated loans are recognized in operating interest income using the effective interest method over the contractual life of the loans and are adjusted for actual prepayments. The Company’s classes of loans are one- to four-family, home equity and consumer and other loans. | ||
Impaired Loans—The Company considers a loan to be impaired when it meets the definition of a TDR. Impaired loans exclude smaller-balance homogeneous one- to four-family, home equity and consumer and other loans that have not been modified as TDRs and are collectively evaluated for impairment. | ||
TDRs—Loan modifications completed under the Company’s loss mitigation programs in which economic concessions were granted to borrowers experiencing financial difficulty are considered TDRs. TDRs also include loans that have been charged-off based on the estimated current value of the underlying property less estimated selling costs due to bankruptcy notification even if the loan has not been modified under the Company’s programs. 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. The Company also processes minor modifications on a number of loans through traditional collections actions taken in the normal course of servicing delinquent accounts. Minor modifications resulting in an insignificant delay in the timing of payments are not considered economic concessions and therefore are not classified as TDRs. | ||
Impairment on loan modifications is measured on an individual loan level basis, generally using a discounted cash flow model. When certain characteristics of the modified loan cast substantial doubt on the borrower’s ability to repay the loan, the Company identifies the loan as collateral dependent and charges-off the amount of the modified loan balance in excess of the estimated current value of the underlying property less estimated selling costs. Collateral dependent TDRs are identified based on the terms of the modification, which includes assigning a higher level of risk to loans in which the LTV or CLTV is greater than 110% or 125%, respectively, a borrower’s credit score is less than 600 and certain types of modifications, such as interest-only payments. TDRs that are not identified as higher risk using this risk assessment process and for which impairment is measured using a discounted cash flow model, continue to be evaluated in the event that they become higher risk collateral dependent TDRs. | ||
TDRs, excluding loans in bankruptcy, are classified as nonperforming loans at the time of modification. Such TDRs return to accrual status after six consecutive payments are made in accordance with the modified terms. Accruing TDRs that subsequently become delinquent will immediately return to nonaccrual status. Bankruptcy loans are classified as nonperforming loans within 60 days of bankruptcy notification and remain on nonaccrual status regardless of the payment history. | ||
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 (including loans in bankruptcy) 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, loans in bankruptcy 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. Certain junior liens that have a delinquent senior lien remain on nonaccrual status until certain performance criteria are met. | ||
Allowance for Loan Losses—The allowance for loan losses is management’s estimate of probable losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan losses is typically equal to management’s forecast of loan losses in the twelve months following the balance sheet date as well as the forecasted losses, including economic concessions to borrowers, over the estimated remaining life of loans modified as TDRs. | ||
The Company’s segments are one- to four-family, home equity and consumer and other. The estimate of the allowance for loan losses is based on a variety of quantitative and qualitative factors, including: | ||
• | the composition and quality of the portfolio; | |
•delinquency levels and trends; | ||
•current and historical charge-off and loss experience; | ||
•the Company’s historical loss mitigation experience; | ||
•the condition of the real estate market and geographic concentrations within the loan portfolio; | ||
•the interest rate climate; | ||
•the overall availability of housing credit; and | ||
•general economic conditions. | ||
For loans that are not TDRs, the Company established a general allowance. The one- to four-family and home equity loan portfolios represented 48% and 45%, respectively, of total loans receivable as of December 31, 2014. The one- to four-family and home equity loan portfolios are separated into risk segments based on key risk factors, which include but are not limited to loan type, delinquency history, documentation type, LTV/CLTV ratio and borrowers’ credit scores. For home equity loans in the second lien position, the original balance of the first lien loan at origination date and updated valuations on the property underlying the loan are used to calculate CLTV. Both current CLTV and FICO scores are among the factors utilized to categorize the risk associated with mortgage loans and assign a probability assumption of future default. The Company utilizes historical mortgage loan performance data to develop the forecast of delinquency and default for these risk segments. | ||
The general allowance for loan losses also includes a qualitative component to account for a variety of factors that present additional uncertainty that may not be fully considered in the quantitative loss model but are factors the Company believes may impact the level of credit losses. The Company utilizes a qualitative factor framework whereby, on a quarterly basis, management assesses the risk associated with three main factors. These factors are: external factors, such as changes in the macroeconomic, legal and regulatory environment; internal factors, such as procedural changes and reliance on third parties; and portfolio specific factors, such as the impact on borrowers' monthly payments from one- to four-family loans converting from interest only to amortizing. The uncertainty related to these factors may expand over time, temporarily increasing the qualitative component in advance of the more precise identification of these probable losses being captured within the general allowance. The total qualitative component was $37 million and $62 million as of December 31, 2014 and 2013, respectively. | ||
During the year ended December 31, 2014, we enhanced our quantitative allowance methodology to identify higher risk home equity lines of credit and extend the period of management’s forecasted loan losses captured within the general allowance to include the total probable loss on a subset of these higher risk loans. These enhancements drove the migration of estimated losses previously captured on these loans from the qualitative component to the quantitative component of the general allowance, and drove the majority of the provision for loan losses within the home equity portfolio during the year ended December 31, 2014. During the year ended December 31, 2013, the Company increased its default assumptions related to balloon loans and extended the period of management's forecasted loan losses captured within the general allowance to include the total probable loss on higher risk balloon loans. The overall impact of these refinements drove the substantial majority of provision for loan losses during the year ended December 31, 2013. | ||
The consumer and other loan portfolio is separated into risk segments by product and delinquency status. The Company utilizes historical performance data and historical recovery rates on collateral liquidation to forecast delinquency and loss at the product level. The consumer and other loan portfolio represented 7% of total loans receivable as of December 31, 2014. The qualitative component for the consumer and other loan portfolio was $1 million and $4 million as of December 31, 2014 and 2013, respectively. | ||
For modified loans accounted for as TDRs that are valued using the discounted cash flow model, the Company established a specific allowance. The specific allowance for TDRs factors in the historical default rate of an individual loan before being modified as a TDR in the discounted cash flow analysis in order to determine that specific loan’s expected impairment. Specifically, a loan that has a more severe delinquency history prior to modification will have a higher future default rate in the discounted cash flow analysis than a loan that was not as severely delinquent. For both of the one- to four-family and home equity loan portfolio segments, the pre-modification delinquency status, the borrower’s current credit score and other credit bureau attributes, in addition to each loan’s individual default experience and credit characteristics, are incorporated into the calculation of the specific allowance. A specific allowance is established to the extent that the recorded investment exceeds the discounted cash flows of a TDR with a corresponding charge to provision for loan losses. 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. | ||
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. | ||
Investment in FHLB stock—The Company is a member of, and owns capital stock in, the FHLB system. The FHLB provides the Company with reserve credit capacity and authorizes advances based on the security of pledged home mortgages and other assets (principally securities that are obligations of, or guaranteed by, the U.S. Government) provided the Company meets certain creditworthiness standards. FHLB advances, included in the FHLB advances and other borrowings line item, is a wholesale funding source of E*TRADE Bank. As a condition of its membership in the FHLB, the Company is required to maintain a FHLB stock investment. The Company accounts for its investment in FHLB stock as a cost method investment. | ||
Property and Equipment, Net—Property and equipment are carried at cost and depreciated on a straight-line basis over their estimated useful lives, generally three to seven years. Leasehold improvements are depreciated over the lesser of their estimated useful lives or lease terms. Buildings are depreciated over the lesser of their estimated useful lives or thirty-five years. Land is carried at cost. An impairment loss is recognized if the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. | ||
On October 31, 2014, the Company executed a sale-leaseback transaction on its office located in Alpharetta, Georgia. The Company recorded the net sales proceeds of approximately $56 million as a financing obligation and the related assets continue to be included in the property and equipment, net line item on the consolidated balance sheet. For additional information on the sale-leaseback, see Note 9—Property and Equipment, Net. | ||
The costs of internally developed software that qualify for capitalization are included in the property and equipment, net line item. For qualifying internal-use software costs, capitalization begins when the conceptual formulation, design and testing of possible software project alternatives are complete and management authorizes and commits to funding the project. The Company does not capitalize pilot projects and projects where it believes that future economic benefits are less than probable. Technology development costs incurred in the development and enhancement of software used in connection with services provided by the Company that do not otherwise qualify for capitalization treatment are expensed as incurred. Completed projects are carried at cost and are amortized on a straight-line basis over their estimated useful lives of four years. | ||
Goodwill and Other Intangibles, Net—Goodwill is acquired through business combinations and represents the excess of the purchase price over the fair value of net tangible assets and identifiable intangible assets. The Company evaluates goodwill for impairment on an annual basis as of November 30 and in interim periods when events or changes indicate the carrying value may not be recoverable. The Company has the option of performing a qualitative assessment of goodwill for any of its reporting units to determine whether it is more likely than not that the fair value is less than the carrying value of a reporting unit. If it is more likely than not that the fair value exceeds the carrying value of the reporting unit, then no further testing is necessary; otherwise, the Company must perform a two-step quantitative assessment of goodwill. The Company may elect to bypass the qualitative assessment and proceed directly to performing a two-step quantitative assessment. | ||
Other intangibles, net represents the excess of the purchase price over the fair value of net tangible assets acquired through the Company’s business combinations. The Company currently does not have any intangible assets with indefinite lives. The Company evaluates other intangible assets with finite lives for impairment on an annual basis or when events or changes indicate the carrying value may not be recoverable. The Company also evaluates the remaining useful lives of intangible assets with finite lives each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. | ||
For additional information on goodwill and other intangibles, net, see Note 10—Goodwill and Other Intangibles, Net. | ||
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 repossessed assets are carried at the lower of carrying value or fair value, less estimated selling costs. | ||
Equity and Cost Method Investments—The Company’s equity and cost method investments are generally limited liability investments in partnerships, companies and other similar entities, including tax credit partnerships and community development entities, that are not required to be consolidated. Equity and cost method investments are reported in the other assets line item in the consolidated balance sheet. Under the equity method, the Company recognizes its share of the investee’s net income or loss in the equity in income (loss) of investments and other line item in the consolidated statement of income (loss). Additionally, the Company recognizes a liability for all legally binding unfunded equity commitments to the investees in the other liabilities line item in the consolidated balance sheet. | ||
The Company evaluates its equity and cost method investments for impairment when events or changes indicate the carrying value may not be recoverable. If the impairment is determined to be other-than-temporary, the Company will recognize an impairment loss in the equity in income (loss) of investments and other line item equal to the difference between the expected realizable value and the carrying value of the investment. | ||
Income Taxes—Deferred income taxes are recorded when revenues and expenses are recognized in different periods for financial statement purposes than for tax purposes. Deferred tax asset or liability account balances are calculated at the balance sheet date using current tax laws and rates in effect. Valuation allowances for deferred tax assets are established if it is determined, based on evaluation of available evidence at the time the determination is made, that it is more likely than not that some or all of the deferred tax assets will not be realized. Income tax expense (benefit) includes (i) deferred tax expense (benefit), which generally represents the net change in the deferred tax asset or liability balance during the year plus any change in valuation allowances, and (ii) current tax expense (benefit), which represents the amount of tax currently payable to or receivable from a taxing authority. Uncertain tax positions are only recognized to the extent it is more likely than not that the uncertain tax position will be sustained upon examination. For uncertain tax positions, tax benefit is recognized for cases in which it is more than fifty percent likely of being sustained on ultimate settlement. For additional information on income taxes, see Note 16—Income Taxes. | ||
Securities Sold Under Agreements to Repurchase—Securities sold under agreements to repurchase the same or similar securities, also known as repurchase agreements, are collateralized by fixed- and variable-rate mortgage-backed securities or investment grade securities. Repurchase agreements are treated as secured borrowings for financial statement purposes and the obligations to repurchase securities sold are therefore reflected as liabilities in the consolidated balance sheet. | ||
Customer Payables—Customer payables represent credit balances in customer accounts arising from deposits of funds and sales of securities and other funds pending completion of securities transactions. Customer payables primarily represent customer cash contained within the Company’s broker-dealer subsidiaries. The Company pays interest on certain customer payables balances. | ||
Comprehensive Income (Loss)—The Company’s comprehensive income (loss) is composed of net income (loss), noncredit portion of OTTI on debt securities, unrealized gains (losses) on available-for-sale securities, the effective portion of the unrealized gains (losses) on derivatives in cash flow hedge relationships and foreign currency translation gains, net of reclassification adjustments and related tax. | ||
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. Each derivative instrument is recorded on the consolidated balance sheet at fair value as a freestanding asset or liability. For financial statement purposes, the Company’s policy is to not offset fair value amounts recognized for derivative instruments and fair value amounts related to collateral arrangements under master netting arrangements. | ||
Accounting for derivatives differs significantly depending on whether a derivative is designated as a hedge based on the applicable accounting guidance and, if designated as a hedge, the type of hedge designation. Derivative instruments designated in hedging relationships that mitigate the exposure to the variability in expected future cash flows or other forecasted transactions are considered cash flow hedges. Derivative instruments in hedging relationships that mitigate exposure to changes in the fair value of assets or liabilities are considered fair value hedges. In order to qualify for hedge accounting, the Company formally documents at inception all relationships between hedging instruments and hedged items and the risk management objective and strategy for each hedge transaction. Cash flow and fair value hedge ineffectiveness is measured on a quarterly basis and is included in the gains on loans and securities, net line item in the consolidated statement of income (loss). Cash flows from derivative instruments in hedging relationships are classified in the same category on the consolidated statement of cash flows as the cash flows from the items being hedged. The Company also recognizes certain contracts and commitments as derivatives when the characteristics of those contracts and commitments meet the definition of a derivative. Gains and losses on derivatives that are not held as accounting hedges are recognized in the gains on loans and securities, net line item in the consolidated statement of income (loss). For additional information on derivative instruments and hedging activities, see Note 8—Accounting for Derivative Instruments and Hedging Activities. | ||
Fair Value—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. The Company determines the fair value for its financial instruments and for nonfinancial assets and nonfinancial liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. In addition, the Company determines the fair value for nonfinancial assets and nonfinancial liabilities on a nonrecurring basis as required during impairment testing or by other accounting guidance. For additional information on fair value, see Note 4—Fair Value Disclosures. | ||
Operating Interest Income—Operating interest income is recognized as earned through holding interest-earning assets, such as loans, available-for-sale securities, held-to-maturity securities, margin receivables, cash and equivalents, segregated cash, and securities lending activities. Operating interest income also includes the impact of the Company’s derivative transactions related to interest-earning assets. | ||
Operating Interest Expense—Operating interest expense is recognized as incurred through holding interest-bearing liabilities, such as deposits, customer payables, securities sold under agreements to repurchase, FHLB advances and other borrowings, and securities lending activities and other balances. Operating interest expense also includes the impact of the Company’s derivative transactions related to interest-bearing liabilities. | ||
Commissions—Commissions are derived from the Company’s customers and are impacted by both trade types and trade mix. Commissions from securities transactions are recognized on a trade-date basis. | ||
Fees and Service Charges—Fees and service charges consist of order flow revenue, mutual fund service fees, advisor management fees, foreign exchange revenue, reorganization fees and other fees and service charges. Order flow revenue is accrued in the same period in which the related securities transactions are completed or related services are rendered. | ||
Principal Transactions—Principal transactions consisted of revenue from market making activities. The Company completed the sale of its market making business on February 10, 2014 and therefore no longer records revenue from principal transactions. For additional information on the market making business, see Note 2—Disposition. | ||
Gains on Loans and Securities, Net—Gains on loans and securities, net includes gains or losses resulting from the sale of available-for-sale securities; gains or losses resulting from sales of loans; hedge ineffectiveness; and gains or losses on derivative instruments that are not accounted for as hedging instruments. Gains or losses resulting from the sale of available-for-sale securities are recognized at the trade-date, based on the difference between the anticipated proceeds and the amortized cost of the specific securities sold. | ||
OTTI—The Company considers OTTI for an available-for-sale or held-to-maturity debt security to have occurred if one of the following conditions are met: the Company intends to sell the impaired debt security; it is more likely than not that the Company will be required to sell the impaired debt security before recovery of the security’s amortized cost basis; or the Company does not expect to recover the entire amortized cost basis of the security. The Company’s evaluation of whether it intends to sell an impaired debt security considers whether management has decided to sell the security as of the balance sheet date. The Company’s evaluation of whether it is more likely than not that the Company will be required to sell an impaired debt security before recovery of the security’s amortized cost basis considers the likelihood of sales that involve legal, regulatory or operational requirements. For impaired debt securities that the Company does not intend to sell and it is not more likely than not that the Company will be required to sell before recovery of the security’s amortized cost basis, the Company uses both qualitative and quantitative valuation measures to evaluate whether the Company expects to recover the entire amortized cost basis of the security. The Company considers all available information relevant to the collectability of the security, including credit enhancements, security structure, vintage, credit ratings and other relevant collateral characteristics. | ||
If the Company intends to sell an impaired debt security or if it is more likely than not that the Company will be required to sell the impaired debt security before recovery of the security’s amortized cost basis, the Company will recognize OTTI in earnings equal to the entire difference between the security’s amortized cost basis and the security’s fair value. If the Company does not intend to sell the impaired debt security and it is not more likely than not that the Company will be required to sell the impaired debt security before recovery of its amortized cost basis but the Company does not expect to recover the entire amortized cost basis of the security, the Company will separate OTTI into two components: 1) the amount related to credit loss, recognized in earnings; and 2) the noncredit portion of OTTI, recognized through other comprehensive income (loss). | ||
The Company considers OTTI for an available-for-sale equity security to have occurred if the decline in the security’s fair value below its cost basis is deemed other than temporary based on evaluation of both qualitative and quantitative valuation measures. If the impairment of an available-for-sale equity security is determined to be other-than-temporary, the Company will recognize OTTI in earnings equal to the entire difference between the security’s amortized cost basis and the security’s fair value. If the Company intends to sell an impaired equity security and the Company does not expect to recover the entire cost basis of the security prior to the sale, the Company will recognize OTTI in the period the decision to sell is made. | ||
Net Impairment—Net impairment includes OTTI net of the noncredit portion of OTTI on debt securities recognized through other comprehensive income (loss) before tax. | ||
Other Revenues—Other revenues primarily consist of fees from software and services for managing equity compensation plans, which are recognized in accordance with applicable accounting guidance, including software revenue recognition accounting guidance. Other revenues also include revenue ancillary to the Company’s customer transactions and income from the cash surrender value of BOLI. | ||
Share-Based Payments—In 2005, the Company adopted and the stockholders approved the 2005 Stock Incentive Plan ("2005 Plan") to replace the 1996 Stock Incentive Plan ("1996 Plan") which provides for the grant of nonqualified or incentive stock options, restricted stock awards and restricted stock units to officers, directors, employees and consultants for the purchase of newly issued shares of the Company’s common stock at a price determined by the Board at the date of the grant. The Company does not have a specific policy for issuing shares upon stock option exercises and share unit conversions; however, new shares are typically issued in connection with exercises and conversions. The Company intends to continue to issue new shares for future exercises and conversions. | ||
Through 2011, the Company issued options to the Company's Board of Directors and to certain of the Company's officers and employees. Options are generally exercisable ratably over a two- to four-year period from the date the option is granted and expire within seven to ten years from the date of grant. Certain options provide for accelerated vesting upon a change in control. Exercise prices were generally equal to the fair value of the shares on the grant date. As of December 31, 2014, there were 0.7 million shares outstanding and less than $1 million of total unrecognized compensation expense related to non-vested stock options. This cost is expected to be recognized over a weighted-average period of 0.1 year. | ||
The Company issues restricted stock awards to the Company's Board of Directors and restricted stock units to certain of the Company's officers and employees. Each restricted stock unit can be converted into one share of the Company’s common stock upon vesting. These restricted stock awards and units are issued at the fair value on the date of grant and vest ratably over the requisite service period, generally one year for restricted stock awards and three to four years for restricted stock units. As of December 31, 2014, there were 3.3 million awards and units outstanding and $31 million of total unrecognized compensation expense related to non-vested awards. This cost is expected to be recognized over a weighted-average period of 1.6 years. The total fair value of restricted stock awards and restricted stock units vested was $34 million, $19 million and $10 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
The Company recognized $24 million, $20 million and $21 million in compensation expense for its options, restricted stock awards and restricted stock units for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Under the 2005 Plan, the remaining unissued authorized shares of the 1996 Plan, up to 4.2 million shares, were authorized for issuance. Additionally, any shares that had been awarded but remained unissued under the 1996 Plan that were subsequently canceled, would be authorized for issuance under the 2005 Plan, up to 3.9 million shares. In May 2009 and 2010, an additional 3.0 million and 12.5 million shares, respectively, were authorized for issuance under the 2005 Plan at the Company’s annual meetings of stockholders in each of those respective years. As of December 31, 2014, 7.2 million shares were available for grant under the 2005 Plan. | ||
The Company records share-based compensation expense in accordance with the stock compensation accounting guidance. The Company recognizes compensation expense at the grant date fair value of a share-based payment award over the requisite service period less estimated forfeitures. Share-based compensation expense is included in the compensation and benefits line item. | ||
Advertising and Market Development—Advertising production costs are expensed when the initial advertisement is run. | ||
Earnings (Loss) Per Share—Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The Company excludes from the calculation of diluted net income (loss) per share stock options, unvested restricted stock awards and units and shares related to convertible debentures that would have been anti-dilutive. | ||
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 initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received and the net investment performance is recognized in the consolidated statement of income (loss) as a component of income tax expense (benefit). The adoption of the amended accounting guidance on a retrospective basis on January 1, 2015 will not 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 on a modified retrospective basis 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 became effective for all disposals or classifications as held for sale occurring in annual and interim periods beginning on January 1, 2015 for the Company. The adoption of the amended guidance did not 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. | ||
Revenue Recognition on Contracts with Customers | ||
In May 2014, the FASB amended the guidance on revenue recognition on contracts with customers. The new standard outlines a single comprehensive model for entities to apply in accounting for revenue arising from contracts with customers. The amended guidance will be effective for annual and interim periods beginning on January 1, 2017 for the Company and may be applied on either a full retrospective or modified retrospective basis. Early adoption is not permitted. While the Company is currently evaluating the impact of the new accounting guidance, the adoption of the amended guidance is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. | ||
Accounting and Disclosures for Repurchase Agreements | ||
In June 2014, the FASB amended the accounting and disclosure guidance on repurchase agreements. The amended guidance requires entities to account for repurchase-to-maturity transactions as secured borrowings, eliminates accounting guidance on linked repurchase financing transactions, and expands the disclosure requirements related to transfers of financial assets accounted for as sales and as secured borrowings. The amended accounting guidance and the amended disclosure guidance for transfers of financial assets accounted for as sales became effective for annual and interim periods beginning on January 1, 2015 for the Company and will be applied using a cumulative-effect approach as of that date. The amended disclosure guidance for transfers of financial assets accounted for as secured borrowings will be effective for annual periods beginning on January 1, 2015 and interim periods beginning on April 1, 2015 for the Company. The adoption of the amended guidance will not have a material impact on the Company’s financial condition, results of operations or cash flows. The Company's disclosures will reflect the adoption of the amended disclosure guidance in the applicable reporting periods in 2015. | ||
Classification of Government-Guaranteed Mortgage Loans upon Foreclosure | ||
In August 2014, the FASB amended the accounting and disclosure guidance related to the classification of certain government-guaranteed mortgage loans upon foreclosure. The amended guidance requires entities to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if certain conditions are met. The separate other receivable is recorded based on the amount of principal and interest expected to be recovered under the guarantee. The amended guidance became effective for annual and interim periods beginning on January 1, 2015 for the Company and will be applied on a modified retrospective basis. The adoption of the amended guidance will not have a material impact on the Company’s financial condition, results of operations or cash flows. | ||
Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern | ||
In August 2014, the FASB amended the guidance related to an entity’s evaluations and disclosures of going concern uncertainties. The new guidance requires management to perform interim and annual assessments of the entity’s ability to continue as a going concern within one year of the date the financial statements are issued, and to provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The amended guidance will be effective for the Company for annual periods beginning on January 1, 2016 and for interim periods beginning on January 1, 2017. Early adoption is permitted. The adoption of the amended guidance will not impact the Company’s financial condition, results of operations or cash flows. | ||
Consolidation | ||
In February 2015, the FASB amended the guidance on consolidation of certain legal entities. The amended guidance modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, and revises the consolidation analysis related to fee arrangements and related party relationships. The amended guidance will be effective for annual and interim periods beginning on January 1, 2016 for the Company and may be applied on either a full retrospective or modified retrospective basis. While the Company is currently evaluating the impact of the new accounting guidance, the adoption of the amended guidance is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. |
Disposition
Disposition | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Discontinued Operations and Disposal Groups [Abstract] | |||||
DISPOSITION | 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 cash proceeds of $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 (loss). 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 at 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 | 12 Months Ended | |||||||||||
Dec. 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): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Operating interest income: | ||||||||||||
Loans | $ | 297 | $ | 395 | $ | 496 | ||||||
Available-for-sale securities | 288 | 279 | 360 | |||||||||
Held-to-maturity securities | 328 | 255 | 237 | |||||||||
Margin receivables | 264 | 224 | 216 | |||||||||
Securities borrowed and other | 116 | 67 | 62 | |||||||||
Total operating interest income(1) | 1,293 | 1,220 | 1,371 | |||||||||
Operating interest expense: | ||||||||||||
Securities sold under agreements to repurchase | (123 | ) | (148 | ) | (158 | ) | ||||||
FHLB advances and other borrowings | (65 | ) | (68 | ) | (93 | ) | ||||||
Deposits | (8 | ) | (13 | ) | (24 | ) | ||||||
Customer payables and other | (9 | ) | (9 | ) | (11 | ) | ||||||
Total operating interest expense(2) | (205 | ) | (238 | ) | (286 | ) | ||||||
Net operating interest income | $ | 1,088 | $ | 982 | $ | 1,085 | ||||||
-1 | Operating interest income reflects $(31) million, $(16) million, and $(10) million of expense on hedges that qualify for hedge accounting for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||
-2 | Operating interest expense reflects $132 million, $153 million, and $142 million of expense on hedges that qualify for hedge accounting for the years ended December 31, 2014, 2013, and 2012, respectively. |
Fair_Value_Disclosures
Fair Value Disclosures | 12 Months Ended | |||||||||||||||||||
Dec. 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 the Company 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 | ||||||||||||||||||||
Agency Debentures and U.S. Treasury Securities | ||||||||||||||||||||
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. The fair value measurements of U.S. Treasury securities, included in deposits with clearing organizations at December 31, 2013, were classified as Level 1 of the fair value hierarchy as they were based on quoted market prices in active markets. The Company did not hold any of these securities at December 31, 2014. | ||||||||||||||||||||
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 enterprises and federal agencies. The weighted average coupon rates for the available-for-sale residential mortgage-backed securities at December 31, 2014 are shown in the following table: | ||||||||||||||||||||
Weighted Average | ||||||||||||||||||||
Coupon Rate | ||||||||||||||||||||
Agency mortgage-backed securities | 3.1 | % | ||||||||||||||||||
Agency CMOs | 3.08 | % | ||||||||||||||||||
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 December 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. | ||||||||||||||||||||
Publicly Traded Equity Securities | ||||||||||||||||||||
The fair value measurements of the Company's publicly traded equity securities were classified as Level 1 of the fair value hierarchy as they were based on quoted market prices in active markets. | ||||||||||||||||||||
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 that were entered into by G1 Execution Services, LLC included trading securities classified as held-for-sale assets within other assets and securities sold, not yet purchased classified as held-for-sale liabilities in the Company’s fair value disclosures at December 31, 2013. The Company’s definition of actively traded was 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 December 31, 2014. Refer to Note 2-Disposition for additional information on the sale of G1 Execution Services, LLC. | ||||||||||||||||||||
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 and certain TDR loan modifications 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 reviews 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 December 31, 2014: | ||||||||||||||||||||
Unobservable Inputs | Average | Range | ||||||||||||||||||
Loans receivable: | ||||||||||||||||||||
One- to four-family | Appraised value | $ | 378,700 | $37,000-$1,800,000 | ||||||||||||||||
Home equity | Appraised value | $ | 280,400 | $9,000-$1,190,000 | ||||||||||||||||
Real estate owned | Appraised value | $ | 342,800 | $5,000-$1,950,000 | ||||||||||||||||
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 December 31, 2014 and 2013 are summarized in the following tables (dollars in millions): | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Fair Value | ||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | — | $ | 11,164 | $ | — | $ | 11,164 | ||||||||||||
Agency debentures | — | 648 | — | 648 | ||||||||||||||||
Agency debt securities | — | 499 | — | 499 | ||||||||||||||||
Municipal bonds | — | 40 | — | 40 | ||||||||||||||||
Corporate bonds | — | 4 | — | 4 | ||||||||||||||||
Total debt securities | — | 12,355 | — | 12,355 | ||||||||||||||||
Publicly traded equity securities | 33 | — | — | 33 | ||||||||||||||||
Total available-for-sale securities | 33 | 12,355 | — | 12,388 | ||||||||||||||||
Other assets: | ||||||||||||||||||||
Derivative assets(1) | — | 24 | — | 24 | ||||||||||||||||
Total assets measured at fair value on a recurring basis(2) | $ | 33 | $ | 12,379 | $ | — | $ | 12,412 | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivative liabilities(1) | $ | — | $ | 66 | $ | — | $ | 66 | ||||||||||||
Total liabilities measured at fair value on a recurring basis(2) | $ | — | $ | 66 | $ | — | $ | 66 | ||||||||||||
Nonrecurring fair value measurements: | ||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||
One- to four-family | $ | — | $ | — | $ | 46 | $ | 46 | ||||||||||||
Home equity | — | — | 32 | 32 | ||||||||||||||||
Total loans receivable | — | — | 78 | 78 | ||||||||||||||||
Real estate owned | — | — | 38 | 38 | ||||||||||||||||
Total assets measured at fair value on a nonrecurring basis(3) | $ | — | $ | — | $ | 116 | $ | 116 | ||||||||||||
-1 | All derivative assets and liabilities were interest rate contracts at December 31, 2014. Information related to derivative instruments is detailed in Note 8—Accounting for Derivative Instruments and Hedging Activities. | |||||||||||||||||||
-2 | Assets and liabilities measured at fair value on a recurring basis represented 27% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2014. | |||||||||||||||||||
-3 | Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 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: | ||||||||||||||||||||
Debt 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 | ||||||||||||||||
Agency debentures | — | 466 | — | 466 | ||||||||||||||||
Agency debt securities | — | 831 | — | 831 | ||||||||||||||||
Municipal bonds | — | 40 | — | 40 | ||||||||||||||||
Corporate bonds | — | 5 | — | 5 | ||||||||||||||||
Total debt securities | — | 13,578 | 14 | 13,592 | ||||||||||||||||
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 years ended December 31, 2014, 2013 and 2012 (dollars in millions): | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
One- to four-family | $ | 10 | $ | 40 | $ | 193 | ||||||||||||||
Home equity | 30 | 58 | 292 | |||||||||||||||||
Total losses on loans receivable measured at fair value | $ | 40 | $ | 98 | $ | 485 | ||||||||||||||
(Gains) losses on real estate owned measured at fair value | $ | (2 | ) | $ | (1 | ) | $ | 12 | ||||||||||||
Losses on goodwill measured at fair value | $ | — | $ | 142 | $ | — | ||||||||||||||
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 years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||
Level 3 Rollforward for Recurring Fair Value Measurements | ||||||||||||||||||||
Level 3 assets 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 measured at fair value on a recurring basis for the years ended December 31, 2014, 2013 and 2012 (dollars in millions): | ||||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||||
Non-agency CMOs | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Beginning of period | $ | 14 | $ | 49 | $ | 97 | ||||||||||||||
Gains (losses) recognized in earnings(1) | 6 | (3 | ) | (13 | ) | |||||||||||||||
Net gains recognized in other comprehensive income(2) | 3 | 5 | 18 | |||||||||||||||||
Sales | (23 | ) | (35 | ) | (68 | ) | ||||||||||||||
Settlements | — | (2 | ) | (23 | ) | |||||||||||||||
Transfers in to Level 3(3)(4) | — | — | 211 | |||||||||||||||||
Transfers out of Level 3(3)(5) | — | — | (173 | ) | ||||||||||||||||
End of period | $ | — | $ | 14 | $ | 49 | ||||||||||||||
-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 (loss). | |||||||||||||||||||
-2 | Net gains recognized in other comprehensive income (loss) are reported in the net change from available-for-sale securities line item. | |||||||||||||||||||
-3 | The Company's transfers in and out of Level 3 are at the beginning of the reporting period on a quarterly basis. | |||||||||||||||||||
-4 | Non-agency CMOs were transferred in to Level 3 due to a lack of observable market data, resulting from a decrease in market activity for the securities. | |||||||||||||||||||
-5 | Non-agency CMOs were transferred out of Level 3 because observable market data became available for those securities. | |||||||||||||||||||
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 December 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Value | Fair Value | |||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and equivalents | $ | 1,783 | $ | 1,783 | $ | — | $ | — | $ | 1,783 | ||||||||||
Cash required to be segregated under federal or other regulations | $ | 555 | $ | 555 | $ | — | $ | — | $ | 555 | ||||||||||
Held-to-maturity securities: | ||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 9,793 | $ | — | $ | 9,971 | $ | — | $ | 9,971 | ||||||||||
Agency debentures | 164 | — | 166 | — | 166 | |||||||||||||||
Agency debt securities | 2,281 | — | 2,329 | — | 2,329 | |||||||||||||||
Other non-agency debt securities | 10 | — | — | 10 | 10 | |||||||||||||||
Total held-to-maturity securities | $ | 12,248 | $ | — | $ | 12,466 | $ | 10 | $ | 12,476 | ||||||||||
Margin receivables | $ | 7,675 | $ | — | $ | 7,675 | $ | — | $ | 7,675 | ||||||||||
Loans receivable, net: | ||||||||||||||||||||
One- to four-family | $ | 3,053 | $ | — | $ | — | $ | 2,742 | $ | 2,742 | ||||||||||
Home equity | 2,475 | — | — | 2,274 | 2,274 | |||||||||||||||
Consumer and other | 451 | — | — | 449 | 449 | |||||||||||||||
Total loans receivable, net(1) | $ | 5,979 | $ | — | $ | — | $ | 5,465 | $ | 5,465 | ||||||||||
Investment in FHLB stock | $ | 88 | $ | — | $ | — | $ | 88 | $ | 88 | ||||||||||
Deposits paid for securities borrowed | $ | 474 | $ | — | $ | 474 | $ | — | $ | 474 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits | $ | 24,890 | $ | — | $ | 24,890 | $ | — | $ | 24,890 | ||||||||||
Securities sold under agreements to repurchase | $ | 3,672 | $ | — | $ | 3,681 | $ | — | $ | 3,681 | ||||||||||
Customer payables | $ | 6,455 | $ | — | $ | 6,455 | $ | — | $ | 6,455 | ||||||||||
FHLB advances and other borrowings | $ | 1,299 | $ | — | $ | 922 | $ | 252 | $ | 1,174 | ||||||||||
Corporate debt | $ | 1,366 | $ | — | $ | 1,491 | $ | — | $ | 1,491 | ||||||||||
Deposits received for securities loaned | $ | 1,649 | $ | — | $ | 1,649 | $ | — | $ | 1,649 | ||||||||||
-1 | The carrying value of loans receivable, net includes the allowance for loan losses of $404 million and loans that are valued at fair value on a nonrecurring basis at December 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 December 31, 2014 and 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, agency debt securities, and other non-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. Fair value of other non-agency debt securities is estimated to be carrying value. | ||||||||||||||||||||
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. | ||||||||||||||||||||
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. | ||||||||||||||||||||
Fair Value of Commitments and Contingencies | ||||||||||||||||||||
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. Changes in the economy or interest rates may influence the impact that these commitments and contingencies have on the Company in the future. The Company does not estimate the fair value of those commitments. The Company has the right to cancel these commitments in certain circumstances and has closed a significant amount of customer home equity lines of credit in the past seven years. At December 31, 2014, the Company had $169 million of unfunded commitments to extend credit. Information related to such commitments and contingent liabilities is detailed in Note 21—Commitments, Contingencies and Other Regulatory Matters. |
Offsetting_Assets_and_Liabilit
Offsetting Assets and Liabilities | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 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 December 31, 2014 and 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 | ||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Deposits paid for securities borrowed (1)(5) | $ | 474 | $ | — | $ | 474 | $ | (188 | ) | $ | (267 | ) | $ | 19 | |||||||||||||
Derivative assets (1)(3) | 24 | — | 24 | (15 | ) | (3 | ) | 6 | |||||||||||||||||||
Total | $ | 498 | $ | — | $ | 498 | $ | (203 | ) | $ | (270 | ) | $ | 25 | |||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Repurchase agreements (4) | $ | 3,672 | $ | — | $ | 3,672 | $ | — | $ | (3,671 | ) | $ | 1 | ||||||||||||||
Deposits received for securities loaned (2)(6) | 1,649 | — | 1,649 | (188 | ) | (1,332 | ) | 129 | |||||||||||||||||||
Derivative liabilities (2)(3) | 30 | — | 30 | (15 | ) | (15 | ) | — | |||||||||||||||||||
Total | $ | 5,351 | $ | — | $ | 5,351 | $ | (203 | ) | $ | (5,018 | ) | $ | 130 | |||||||||||||
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 $7 million and $19 million at December 31, 2014 and 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 December 31, 2014 and 2013. | ||||||||||||||||||||||||||
-5 | Included in the gross amounts of deposits paid for securities borrowed was $278 million and $415 million at December 31, 2014 and 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 was $1.1 billion and $682 million at December 31, 2014 and 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 December 31, 2014 and 2013, the Company had $0 and $15 million, respectively, in derivative assets of cleared derivatives contracts and $36 million and $1 million, respectively, in derivative liabilities of cleared derivatives contracts. |
AvailableforSale_and_HeldtoMat
Available-for-Sale and Held-to-Maturity Securities | 12 Months Ended | |||||||||||||||||||||||
Dec. 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 December 31, 2014 and 2013 are shown in the following tables (dollars in millions): | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||||||
Cost | Unrealized / | Unrealized / | ||||||||||||||||||||||
Unrecognized | Unrecognized | |||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 11,156 | $ | 113 | $ | (105 | ) | $ | 11,164 | |||||||||||||||
Agency debentures | 620 | 28 | — | 648 | ||||||||||||||||||||
Agency debt securities | 487 | 12 | — | 499 | ||||||||||||||||||||
Municipal bonds | 40 | 1 | (1 | ) | 40 | |||||||||||||||||||
Corporate bonds | 5 | — | (1 | ) | 4 | |||||||||||||||||||
Total debt securities | 12,308 | 154 | (107 | ) | 12,355 | |||||||||||||||||||
Publicly traded equity securities(1) | 33 | — | — | 33 | ||||||||||||||||||||
Total available-for-sale securities | $ | 12,341 | $ | 154 | $ | (107 | ) | $ | 12,388 | |||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 9,793 | $ | 217 | $ | (39 | ) | $ | 9,971 | |||||||||||||||
Agency debentures | 164 | 2 | — | 166 | ||||||||||||||||||||
Agency debt securities | 2,281 | 54 | (6 | ) | 2,329 | |||||||||||||||||||
Other non-agency debt securities | 10 | — | — | 10 | ||||||||||||||||||||
Total held-to-maturity securities | $ | 12,248 | $ | 273 | $ | (45 | ) | $ | 12,476 | |||||||||||||||
December 31, 2013: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Debt 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 | |||||||||||||||||||
Agency debentures | 520 | — | (54 | ) | 466 | |||||||||||||||||||
Agency debt securities | 832 | 8 | (9 | ) | 831 | |||||||||||||||||||
Municipal bonds | 42 | — | (2 | ) | 40 | |||||||||||||||||||
Corporate bonds | 6 | — | (1 | ) | 5 | |||||||||||||||||||
Total debt securities | 13,922 | 76 | (406 | ) | 13,592 | |||||||||||||||||||
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 | |||||||||||||||
Agency debentures | 164 | 4 | — | 168 | ||||||||||||||||||||
Agency debt securities | 1,658 | 13 | (40 | ) | 1,631 | |||||||||||||||||||
Total held-to-maturity securities | $ | 10,181 | $ | 116 | $ | (205 | ) | $ | 10,092 | |||||||||||||||
-1 | Publicly traded equity securities consisted of investments in a mutual fund related to the Community Reinvestment Act. | |||||||||||||||||||||||
Contractual Maturities | ||||||||||||||||||||||||
The contractual maturities of all available-for-sale and held-to-maturity debt securities at December 31, 2014 are shown below (dollars in millions): | ||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||
Due within one year | $ | 3 | $ | 3 | ||||||||||||||||||||
Due within one to five years | 9 | 9 | ||||||||||||||||||||||
Due within five to ten years | 842 | 849 | ||||||||||||||||||||||
Due after ten years | 11,454 | 11,494 | ||||||||||||||||||||||
Total available-for-sale debt securities | $ | 12,308 | $ | 12,355 | ||||||||||||||||||||
Held-to-maturity debt securities: | ||||||||||||||||||||||||
Due within one year | $ | 169 | $ | 171 | ||||||||||||||||||||
Due within one to five years | 892 | 921 | ||||||||||||||||||||||
Due within five to ten years | 2,787 | 2,868 | ||||||||||||||||||||||
Due after ten years | 8,400 | 8,516 | ||||||||||||||||||||||
Total held-to-maturity debt securities | $ | 12,248 | $ | 12,476 | ||||||||||||||||||||
The Company pledged $1.6 billion and $2.1 billion at December 31, 2014 and 2013, respectively, of available-for-sale debt securities and $3.1 billion and $3.4 billion at December 31, 2014 and 2013, respectively, of held-to-maturity debt securities as collateral for repurchase agreements, derivatives and other purposes. | ||||||||||||||||||||||||
Investments with Unrealized or Unrecognized 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 December 31, 2014 and 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 | ||||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 403 | $ | (1 | ) | $ | 4,674 | $ | (104 | ) | $ | 5,077 | $ | (105 | ) | |||||||||
Agency debentures | — | — | 9 | — | 9 | — | ||||||||||||||||||
Municipal bonds | 3 | — | 16 | (1 | ) | 19 | (1 | ) | ||||||||||||||||
Corporate bonds | — | — | 5 | (1 | ) | 5 | (1 | ) | ||||||||||||||||
Total temporarily impaired available-for-sale securities | $ | 406 | $ | (1 | ) | $ | 4,704 | $ | (106 | ) | $ | 5,110 | $ | (107 | ) | |||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 45 | $ | — | $ | 2,289 | $ | (39 | ) | $ | 2,334 | $ | (39 | ) | ||||||||||
Agency debt securities | 110 | (1 | ) | 560 | (5 | ) | 670 | (6 | ) | |||||||||||||||
Total temporarily impaired held-to-maturity securities | $ | 155 | $ | (1 | ) | $ | 2,849 | $ | (44 | ) | $ | 3,004 | $ | (45 | ) | |||||||||
December 31, 2013: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 6,422 | $ | (268 | ) | $ | 1,266 | $ | (67 | ) | $ | 7,688 | $ | (335 | ) | |||||||||
Non-agency CMOs | — | — | 11 | (5 | ) | 11 | (5 | ) | ||||||||||||||||
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 | ) | |||||||||
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 December 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 (loss). The Company assessed whether it intends to sell, or whether it is more likely than not that the Company will be required to sell an impaired security before recovery of its amortized cost basis. For debt 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 or issued by U.S. government sponsored enterprises 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 debt 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 debt securities before the anticipated recovery of its remaining amortized cost of the debt securities in an unrealized or unrecognized loss position at December 31, 2014. | ||||||||||||||||||||||||
The following table presents a roll forward for the years ended December 31, 2014, 2013 and 2012 of the credit loss component on debt securities held by the Company that had a noncredit loss recognized in other comprehensive income (loss) and had a credit loss recognized in earnings (dollars in millions): | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Credit loss balance, beginning of period | $ | 166 | $ | 187 | $ | 203 | ||||||||||||||||||
Additions: | ||||||||||||||||||||||||
Initial credit impairment | — | — | 1 | |||||||||||||||||||||
Subsequent credit impairment | — | 3 | 16 | |||||||||||||||||||||
Debt securities sold | (14 | ) | (24 | ) | (33 | ) | ||||||||||||||||||
Credit loss balance, end of period (1) | $ | 152 | $ | 166 | $ | 187 | ||||||||||||||||||
-1 | The credit loss balance at December 31, 2014, 2013 and 2012 included $123 million, $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 (loss) for the years ended December 31, 2014, 2013 and 2012 are as follows (dollars in millions): | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Gains (losses) on loans, net | $ | 4 | $ | (1 | ) | $ | 1 | |||||||||||||||||
Gains on securities, net: | ||||||||||||||||||||||||
Gains on available-for-sale securities | 42 | 69 | 212 | |||||||||||||||||||||
Losses on available-for-sale securities | — | (8 | ) | (5 | ) | |||||||||||||||||||
Hedge ineffectiveness | (10 | ) | 1 | (7 | ) | |||||||||||||||||||
Gains on securities, net | 32 | 62 | 200 | |||||||||||||||||||||
Gains on loans and securities, net | $ | 36 | $ | 61 | $ | 201 | ||||||||||||||||||
During the year ended December 31, 2014, the Company recognized a pre-tax gain of $7 million on the sale of $0.8 billion of one- to four-family loans modified as TDRs. The Company also 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 year ended December 31, 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 loss of $4 million. |
Loans_Receivable_Net
Loans Receivable, Net | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||
LOANS RECEIVABLE, NET | LOANS RECEIVABLE, NET | ||||||||||||||||||||||||||
Loans receivable, net at December 31, 2014 and 2013 are summarized as follows (dollars in millions): | |||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
One- to four-family | $ | 3,060 | $ | 4,475 | |||||||||||||||||||||||
Home equity | 2,834 | 3,454 | |||||||||||||||||||||||||
Consumer and other | 455 | 602 | |||||||||||||||||||||||||
Total loans receivable | 6,349 | 8,531 | |||||||||||||||||||||||||
Unamortized premiums, net | 34 | 45 | |||||||||||||||||||||||||
Allowance for loan losses | (404 | ) | (453 | ) | |||||||||||||||||||||||
Total loans receivable, net | $ | 5,979 | $ | 8,123 | |||||||||||||||||||||||
At December 31, 2014, the Company pledged $5.4 billion and $0.5 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. Additionally, the Company’s entire loans receivable portfolio was serviced by other companies at December 31, 2014 and 2013. During the second quarter of 2014, the Company sold $0.8 billion of one- to four-family loans modified as TDRs. | |||||||||||||||||||||||||||
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 December 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||||||
Recorded Investment | Allowance for Loan Losses | ||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Loans collectively evaluated for impairment | $ | 5,850 | $ | 7,163 | $ | 338 | $ | 329 | |||||||||||||||||||
Loans individually evaluated for impairment (TDRs) | 533 | 1,413 | 66 | 124 | |||||||||||||||||||||||
Total | $ | 6,383 | $ | 8,576 | $ | 404 | $ | 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 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 December 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||||||
One- to Four-Family | Home Equity | ||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||
Current LTV/CLTV (1) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
<€% | $ | 1,757 | $ | 1,912 | $ | 1,081 | $ | 1,142 | |||||||||||||||||||
80%-100% | 807 | 1,365 | 755 | 866 | |||||||||||||||||||||||
100%-120% | 311 | 711 | 557 | 736 | |||||||||||||||||||||||
>120% | 185 | 487 | 441 | 710 | |||||||||||||||||||||||
Total mortgage loans receivable | $ | 3,060 | $ | 4,475 | $ | 2,834 | $ | 3,454 | |||||||||||||||||||
Average estimated current LTV/CLTV (2) | 79 | % | 90 | % | 92 | % | 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. For home equity loans in the second lien position, the original balance of the first lien loan at origination date and updated valuations on the property underlying the loan are used to calculate CLTV. 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 | ||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||
Current FICO (1) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
>r0 | $ | 1,734 | $ | 2,252 | $ | 1,487 | $ | 1,811 | |||||||||||||||||||
719 - 700 | 296 | 436 | 292 | 343 | |||||||||||||||||||||||
699 - 680 | 260 | 366 | 238 | 293 | |||||||||||||||||||||||
679 - 660 | 197 | 296 | 203 | 245 | |||||||||||||||||||||||
659 - 620 | 237 | 404 | 258 | 310 | |||||||||||||||||||||||
<620 | 336 | 721 | 356 | 452 | |||||||||||||||||||||||
Total mortgage loans receivable | $ | 3,060 | $ | 4,475 | $ | 2,834 | $ | 3,454 | |||||||||||||||||||
-1 | FICO scores are updated on a quarterly basis; however, at December 31, 2014 and 2013, there were some loans for which the updated FICO scores were not available. The current FICO distribution at December 31, 2014 included the most recent FICO scores where available, otherwise the original FICO score was used, for approximately $49 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. At December 31, 2014, 42% of the Company's one- to four-family portfolio were not yet amortizing. However, during the year ended December 31, 2014, based on the unpaid principal balance before charge-offs, approximately 15% 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 December 31, 2014. The home equity loan portfolio consists of approximately 19% of home equity installment loans and approximately 81% of home equity lines of credit at December 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 7% of this portfolio will require the borrowers to repay the loan in full at the end of the draw period. At December 31, 2014, 85% of the home equity line of credit portfolio had not converted from the interest-only draw period and had not begun amortizing. However, during the year ended December 31, 2014, approximately 40% of the borrowers of the Company's not yet converted home equity line of credit loans made 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 December 31, 2014: | |||||||||||||||||||||||||||
Period of Conversion to Amortizing Loan | % of One- to Four-Family | % of Home Equity Line of | |||||||||||||||||||||||||
Portfolio | Credit Portfolio | ||||||||||||||||||||||||||
Already amortizing | 58% | 15% | |||||||||||||||||||||||||
Year ending December 31, 2015 | 5% | 27% | |||||||||||||||||||||||||
Year ending December 31, 2016 | 16% | 44% | |||||||||||||||||||||||||
Year ending December 31, 2017 or later | 21% | 14% | |||||||||||||||||||||||||
Approximately 38% and 40% of the Company’s mortgage loans receivable were concentrated in California at December 31, 2014 and 2013, respectively. No other state had concentrations of mortgage loans that represented 10% or more of the Company’s mortgage loans receivable at December 31, 2014 and 2013. | |||||||||||||||||||||||||||
Delinquent Loans | |||||||||||||||||||||||||||
The following table shows total loans receivable by delinquency category at December 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||||||
Current | 30-89 Days | 90-179 Days | 180+ Days | Total | |||||||||||||||||||||||
Delinquent | Delinquent | Delinquent | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||
One- to four-family | $ | 2,813 | $ | 88 | $ | 28 | $ | 131 | $ | 3,060 | |||||||||||||||||
Home equity | 2,702 | 60 | 29 | 43 | 2,834 | ||||||||||||||||||||||
Consumer and other | 447 | 7 | 1 | — | 455 | ||||||||||||||||||||||
Total loans receivable | $ | 5,962 | $ | 155 | $ | 58 | $ | 174 | $ | 6,349 | |||||||||||||||||
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 following table shows the comparative data for nonperforming loans (dollars in millions): | |||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
One- to four-family | $ | 294 | $ | 526 | |||||||||||||||||||||||
Home equity | 165 | 164 | |||||||||||||||||||||||||
Consumer and other | 1 | 3 | |||||||||||||||||||||||||
Total nonperforming loans receivable | $ | 460 | $ | 693 | |||||||||||||||||||||||
Nonperforming loans decreased $233 million to $460 million at December 31, 2014 when compared to December 31, 2013. The decrease in the one- to four-family nonperforming loans receivable during the year ended December 31, 2014 was primarily due to the sale of one- to four-family loans modified as TDRs, which included $377 million of nonperforming loans. 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 classified as performing loans at December 31, 2013. | |||||||||||||||||||||||||||
Real Estate Owned and Loans with Formal Foreclosure Proceedings in Process | |||||||||||||||||||||||||||
At December 31, 2014 and 2013, the Company held $36 million and $50 million, respectively, of real estate owned that were acquired through foreclosure or through a deed in lieu of foreclosure or similar legal agreement. The Company also held $107 million and $199 million of loans for which formal foreclosure proceedings were in process at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||||
The following table provides a roll forward by loan portfolio of the allowance for loan losses for the years ended December 31, 2014, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||||||
Year Ended December 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 | (42 | ) | 82 | (4 | ) | 36 | |||||||||||||||||||||
Charge-offs | (44 | ) | (65 | ) | (17 | ) | (126 | ) | |||||||||||||||||||
Recoveries | 11 | 24 | 6 | 41 | |||||||||||||||||||||||
Charge-offs, net | (33 | ) | (41 | ) | (11 | ) | (85 | ) | |||||||||||||||||||
Allowance for loan losses, end of period | $ | 27 | $ | 367 | $ | 10 | $ | 404 | |||||||||||||||||||
Year Ended December 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 | (55 | ) | 192 | 6 | 143 | ||||||||||||||||||||||
Charge-offs | (41 | ) | (157 | ) | (33 | ) | (231 | ) | |||||||||||||||||||
Recoveries | 14 | 34 | 12 | 60 | |||||||||||||||||||||||
Charge-offs, net | (27 | ) | (123 | ) | (21 | ) | (171 | ) | |||||||||||||||||||
Allowance for loan losses, end of period | $ | 102 | $ | 326 | $ | 25 | $ | 453 | |||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||
One- to | Home | Consumer | Total | ||||||||||||||||||||||||
Four-Family | Equity | and Other | |||||||||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 314 | $ | 463 | $ | 46 | $ | 823 | |||||||||||||||||||
Provision for loan losses | 51 | 271 | 33 | 355 | |||||||||||||||||||||||
Charge-offs | (190 | ) | (517 | ) | (51 | ) | (758 | ) | |||||||||||||||||||
Recoveries | 9 | 40 | 12 | 61 | |||||||||||||||||||||||
Charge-offs, net | (181 | ) | (477 | ) | (39 | ) | (697 | ) | |||||||||||||||||||
Allowance for loan losses, end of period | $ | 184 | $ | 257 | $ | 40 | $ | 481 | |||||||||||||||||||
The general allowance for loan losses also included a qualitative component to account for a variety of factors that present additional uncertainty that may not be fully considered in the quantitative loss model but are factors the Company believes may impact the level of credit losses. The total qualitative component was $37 million and $62 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||
Total allowance for loan losses decreased during the year ended December 31, 2014 primarily due to the sale of one- to four-family loans modified as TDRs. As a result of this sale, 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 years ended December 31, 2014, 2013 and 2012, the Company agreed to settlements with 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, $13 million and $11 million for the years ended December 31, 2014, 2013 and 2012, 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. | |||||||||||||||||||||||||||
Delinquency status is the primary measure the Company uses to evaluate the performance of loans modified as TDRs. As mentioned above, 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, including loans in bankruptcy, and certain junior liens that have a delinquent senior lien. The following table shows a summary of the Company’s recorded investment in TDRs that were on accrual and nonaccrual status, further disaggregated by delinquency status, in addition to the recorded investment in TDRs at December 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||||||
Nonaccrual TDRs | |||||||||||||||||||||||||||
Accrual | Current(2) | 30-89 Days | 90-179 Days | 180+ Days | Total Recorded | ||||||||||||||||||||||
TDRs(1) | Delinquent | Delinquent | Delinquent | Investment in | |||||||||||||||||||||||
TDRs (3)(4) | |||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||
One- to four-family | $ | 121 | $ | 111 | $ | 24 | $ | 12 | $ | 48 | $ | 316 | |||||||||||||||
Home equity | 127 | 51 | 14 | 6 | 19 | 217 | |||||||||||||||||||||
Total | $ | 248 | $ | 162 | $ | 38 | $ | 18 | $ | 67 | $ | 533 | |||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
One- to four-family | $ | 774 | $ | 127 | $ | 102 | $ | 44 | $ | 125 | $ | 1,172 | |||||||||||||||
Home equity | 176 | 22 | 17 | 7 | 19 | 241 | |||||||||||||||||||||
Total | $ | 950 | $ | 149 | $ | 119 | $ | 51 | $ | 144 | $ | 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, bankruptcy loans and certain junior lien TDRs that have a delinquent senior lien. | ||||||||||||||||||||||||||
-3 | The unpaid principal balance in one- to four-family TDRs was $0.3 billion and $1.2 billion at December 31, 2014 and 2013, respectively. For home equity loans, the recorded investment in TDRs represents the unpaid principal balance. | ||||||||||||||||||||||||||
-4 | Total recorded investment in TDRs at December 31, 2014 consisted of $354 million of loans modified as TDRs and $179 million of loans that have been charged off due to bankruptcy notification. Total recorded investment in TDRs at December 31, 2013 consisted of $1.2 billion of loans modified as TDRs and $189 million of loans that have been charged off due to bankruptcy notification. | ||||||||||||||||||||||||||
The decrease in the one- to four-family TDRs was primarily due to the sale of $0.8 billion of one- to four-family loans modified as TDRs during the second quarter of 2014. | |||||||||||||||||||||||||||
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 December 31, 2014, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||
One- to four-family | $ | 576 | $ | 1,205 | $ | 1,054 | $ | 16 | $ | 33 | $ | 31 | |||||||||||||||
Home equity | 227 | 262 | 297 | 18 | 20 | 12 | |||||||||||||||||||||
Total | $ | 803 | $ | 1,467 | $ | 1,351 | $ | 34 | $ | 53 | $ | 43 | |||||||||||||||
Included in the allowance for loan losses was a specific valuation allowance of $66 million and $124 million that was established for TDRs at December 31, 2014 and 2013, respectively. The specific allowance for these individually impaired loans represents the forecasted losses over the estimated remaining life of the loans, including the economic concessions granted to the borrowers. The following table shows detailed information related to the Company’s TDRs at December 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||||||
December 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 | $ | 88 | $ | 9 | $ | 79 | $ | 403 | $ | 60 | $ | 343 | |||||||||||||||
Home equity | $ | 118 | $ | 57 | $ | 61 | $ | 140 | $ | 64 | $ | 76 | |||||||||||||||
Without a recorded allowance:(1) | |||||||||||||||||||||||||||
One- to four-family | $ | 228 | $ | — | $ | 228 | $ | 769 | $ | — | $ | 769 | |||||||||||||||
Home equity | $ | 99 | $ | — | $ | 99 | $ | 101 | $ | — | $ | 101 | |||||||||||||||
Total: | |||||||||||||||||||||||||||
One- to four-family | $ | 316 | $ | 9 | $ | 307 | $ | 1,172 | $ | 60 | $ | 1,112 | |||||||||||||||
Home equity | $ | 217 | $ | 57 | $ | 160 | $ | 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 in a loan modification typically consist of interest rate reductions, maturity date extensions, principal forgiveness or a combination of these concessions. The Company uses specialized servicers that focus on loan modifications and pursue trial modifications for loans that are more than 180 days delinquent. 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 years ended December 31, 2014, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||
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 | 64 | $ | 1 | $ | — | $ | 11 | $ | 2 | $ | 6 | $ | 20 | ||||||||||||||
Home equity | 195 | — | — | 4 | 2 | 9 | 15 | ||||||||||||||||||||
Total | 259 | $ | 1 | $ | — | $ | 15 | $ | 4 | $ | 15 | $ | 35 | ||||||||||||||
Year Ended December 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 | 324 | $ | 19 | $ | 5 | $ | 71 | $ | 11 | $ | 18 | $ | 124 | ||||||||||||||
Home equity | 253 | — | — | 7 | 7 | 7 | 21 | ||||||||||||||||||||
Total | 577 | $ | 19 | $ | 5 | $ | 78 | $ | 18 | $ | 25 | $ | 145 | ||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||
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 | 614 | $ | 53 | $ | 37 | $ | 131 | $ | 12 | $ | 19 | $ | 252 | ||||||||||||||
Home equity | 638 | — | — | 5 | 39 | 10 | 54 | ||||||||||||||||||||
Total | 1,252 | $ | 53 | $ | 37 | $ | 136 | $ | 51 | $ | 29 | $ | 306 | ||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||
Financial Impact | |||||||||||||||||||||||||||
Principal | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
Forgiven | Weighted Average Interest Rate | Weighted Average Interest Rate | |||||||||||||||||||||||||
One- to four-family | $ | — | 5.2 | % | 2.6 | % | |||||||||||||||||||||
Home equity | — | 5.4 | % | 2.4 | % | ||||||||||||||||||||||
Total | $ | — | |||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||
Financial Impact | |||||||||||||||||||||||||||
Principal | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
Forgiven | Weighted Average Interest Rate | Weighted Average Interest Rate | |||||||||||||||||||||||||
One- to four-family | $ | 7 | 5.2 | % | 2.3 | % | |||||||||||||||||||||
Home equity | — | 4.7 | % | 1.9 | % | ||||||||||||||||||||||
Total | $ | 7 | |||||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||
Financial Impact | |||||||||||||||||||||||||||
Principal | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
Forgiven | Weighted Average Interest Rate | Weighted Average Interest Rate | |||||||||||||||||||||||||
One- to four-family | $ | 17 | 5.9 | % | 2.3 | % | |||||||||||||||||||||
Home equity | — | 4.4 | % | 1.5 | % | ||||||||||||||||||||||
Total | $ | 17 | |||||||||||||||||||||||||
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 years ended December 31, 2014, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||
Loans | Investment | Loans | Investment | Loans | Investment | ||||||||||||||||||||||
One- to four-family(1) | 27 | $ | 9 | 142 | $ | 53 | 260 | $ | 100 | ||||||||||||||||||
Home equity(2) | 55 | 3 | 69 | 3 | 367 | 18 | |||||||||||||||||||||
Total | 82 | $ | 12 | 211 | $ | 56 | 627 | $ | 118 | ||||||||||||||||||
-1 | For the years ended December 31, 2014, 2013 and 2012, $1 million, $18 million and $28 million, respectively, of the recorded investment in one- to four-family loans that had a payment default in the trailing 12 months was classified as current. | ||||||||||||||||||||||||||
-2 | For the years ended December 31, 2014, 2013 and 2012, $1 million, $1 million and $6 million, respectively, of the recorded investment in home equity loans that had a payment default in the trailing 12 months was classified as current. |
Accounting_for_Derivative_Inst
Accounting for Derivative Instruments and Hedging Activities | 12 Months Ended | |||||||||||||||||||||||
Dec. 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, 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 instrument 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 December 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
Notional | Asset(1) | Liability(2) | Net(3) | |||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Cash flow hedges | $ | 2,000 | $ | 23 | $ | (24 | ) | $ | (1 | ) | ||||||||||||||
Fair value hedges | 1,069 | 1 | (42 | ) | (41 | ) | ||||||||||||||||||
Total derivatives designated as hedging instruments(4) | $ | 3,069 | $ | 24 | $ | (66 | ) | $ | (42 | ) | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Cash flow hedges | $ | 3,305 | $ | 27 | $ | (168 | ) | $ | (141 | ) | ||||||||||||||
Fair value hedges | 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 December 31, 2014 and 2013. | |||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||
The effective portion of the changes in fair value of the derivative instruments in a cash flow hedge 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 reclassified from accumulated other comprehensive loss into net operating interest income as a yield adjustment in the same period the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivative instrument in a cash flow hedge, 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 (loss). | ||||||||||||||||||||||||
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 (loss). 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 December 31, 2014, the Company believes the forecasted issuance of all liabilities in cash flow hedge relationships is probable. However, unexpected changes in market conditions in future periods could impact the ability to issue these liabilities. The Company believes the forecasted issuance of liabilities 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 (loss) for the years ended December 31, 2014, 2013 and 2012 (dollars in millions): | ||||||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Gains (losses) on derivatives recognized in OCI (effective portion), net of tax | $ | (39 | ) | $ | 67 | $ | (72 | ) | ||||||||||||||||
Losses reclassified from AOCI into earnings (effective portion), net of tax | $ | (76 | ) | $ | (87 | ) | $ | (78 | ) | |||||||||||||||
Cash flow hedge ineffectiveness gains(1) | $ | — | $ | 1 | $ | — | ||||||||||||||||||
-1 | The cash flow hedge ineffectiveness is reflected in the gains on loans and securities, net line item on the consolidated statement of income (loss). | |||||||||||||||||||||||
During the upcoming twelve months, the Company expects to include a pre-tax amount of approximately $101 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 8 years. | ||||||||||||||||||||||||
The following table shows the balance in accumulated other comprehensive loss attributable to active and discontinued cash flow hedges at December 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Accumulated other comprehensive loss balance (net of tax) related to: | ||||||||||||||||||||||||
Discontinued cash flow hedges | $ | (227 | ) | $ | (201 | ) | ||||||||||||||||||
Active cash flow hedges | (34 | ) | (97 | ) | ||||||||||||||||||||
Total cash flow hedges | $ | (261 | ) | $ | (298 | ) | ||||||||||||||||||
The following table shows the balance in accumulated other comprehensive loss attributable to cash flow hedges by type of hedged item at December 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Repurchase agreements | $ | (341 | ) | $ | (379 | ) | ||||||||||||||||||
FHLB advances | (81 | ) | (99 | ) | ||||||||||||||||||||
Total balance of cash flow hedges, before tax | (422 | ) | (478 | ) | ||||||||||||||||||||
Tax benefit | 161 | 180 | ||||||||||||||||||||||
Total balance of cash flow hedges, net of tax | $ | (261 | ) | $ | (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 derivative instruments and the underlying assets or liabilities are recognized in the gains on loans and securities, net line item in the consolidated statement of income (loss). 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 (loss). | ||||||||||||||||||||||||
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 (loss) 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 (loss). | ||||||||||||||||||||||||
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 (loss) for the years ended December 31, 2014, 2013 and 2012 (dollars in millions): | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Hedging | Hedged | Hedge | Hedging | Hedged | Hedge | |||||||||||||||||||
Instrument | Item | Ineffectiveness(1) | Instrument | Item | Ineffectiveness(1) | |||||||||||||||||||
Agency debentures | $ | (100 | ) | $ | 91 | $ | (9 | ) | $ | 73 | $ | (72 | ) | $ | 1 | |||||||||
Agency mortgage-backed securities | (33 | ) | 32 | (1 | ) | 34 | (35 | ) | (1 | ) | ||||||||||||||
Total gains (losses) included in earnings | $ | (133 | ) | $ | 123 | $ | (10 | ) | $ | 107 | $ | (107 | ) | $ | — | |||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||
Hedging | Hedged | Hedge | ||||||||||||||||||||||
Instrument | Item | Ineffectiveness(1) | ||||||||||||||||||||||
Agency debentures | $ | (18 | ) | $ | 16 | $ | (2 | ) | ||||||||||||||||
Agency mortgage-backed securities | (7 | ) | 7 | — | ||||||||||||||||||||
FHLB advances | 14 | (19 | ) | (5 | ) | |||||||||||||||||||
Total gains (losses) included in earnings | $ | (11 | ) | $ | 4 | $ | (7 | ) | ||||||||||||||||
-1 | Reflected in the gains on loans and securities, net line item on the consolidated statement of income (loss). | |||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||
Impact on Fair Value Measurements | ||||||||||||||||||||||||
Credit risk is an element of the recurring fair value measurements for certain assets and liabilities, including derivative instruments. Credit risk is managed by limiting activity to approved counterparties and setting aggregate exposure limits for each approved counterparty. The Company also monitors collateral requirements on derivative instruments through credit support agreements, which reduce risk by permitting the netting of transactions with the same counterparty upon occurrence of certain events. | ||||||||||||||||||||||||
The Company considered the impact of credit risk on the fair value measurement for derivative instruments, particularly those in net liability positions to counterparties, to be mitigated by the enforcement of credit support agreements, and the collateral requirements therein. The Company pledged approximately $126 million of its cash and mortgage-backed securities as collateral related to its derivative contracts in net liability positions to counterparties at December 31, 2014. | ||||||||||||||||||||||||
The Company’s credit risk analysis for derivative instruments also considered the credit loss exposure on derivative instruments in net asset positions. During the year ended December 31, 2014, the consideration of counterparty credit risk did not result in an adjustment to the valuation of the Company’s derivative instruments. | ||||||||||||||||||||||||
Impact on Liquidity | ||||||||||||||||||||||||
In the normal course of business, collateral requirements contained in the Company’s derivative instruments are enforced by the Company and its counterparties. Upon enforcement of the collateral requirements, the amount of collateral requested is typically based on the net fair value of all derivative instruments with the counterparty; that is derivative assets net of derivative liabilities at the counterparty level. If the Company were to be in violation of certain provisions of the derivative instruments, the counterparties to the derivative instruments could request payment or collateralization on derivative instruments. The Company expects such requests would be based on the fair value of derivative assets net of derivative liabilities at the counterparty level. The fair value of derivative instruments in net liability positions at the counterparty level was $51 million at December 31, 2014. The fair value of the Company’s cash and mortgage-backed securities pledged as collateral related to derivative contracts in net liability positions to counterparties, was $126 million at December 31, 2014, which exceeded derivative instruments in net liability positions at the counterparty level by $75 million. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET | |||||||||||||||||||||||
Property and equipment, net consisted of the following assets at December 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Amount | Depreciation | Amount | Amount | Depreciation | Amount | |||||||||||||||||||
and | and | |||||||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
Software | $ | 487 | $ | (391 | ) | $ | 96 | $ | 489 | $ | (373 | ) | $ | 116 | ||||||||||
Leasehold improvements | 114 | (84 | ) | 30 | 112 | (77 | ) | 35 | ||||||||||||||||
Equipment | 102 | (76 | ) | 26 | 95 | (73 | ) | 22 | ||||||||||||||||
Buildings | 72 | (26 | ) | 46 | 72 | (24 | ) | 48 | ||||||||||||||||
Furniture and fixtures | 23 | (21 | ) | 2 | 23 | (20 | ) | 3 | ||||||||||||||||
Land | 3 | — | 3 | 3 | — | 3 | ||||||||||||||||||
Construction in progress | 42 | — | 42 | 10 | — | 10 | ||||||||||||||||||
Total | $ | 843 | $ | (598 | ) | $ | 245 | $ | 804 | $ | (567 | ) | $ | 237 | ||||||||||
Depreciation and amortization expense related to property and equipment was $78 million, $89 million and $91 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Software includes capitalized internally developed software costs of $27 million, $24 million and $55 million for the years ended December 31, 2014, 2013 and 2012, respectively. Amortization of completed and in-service software was $47 million, $57 million and $58 million for the years ended December 31, 2014, 2013 and 2012, respectively. Software at December 31, 2014 and 2013 also included $19 million and $15 million, respectively, of internally developed software in the process of development for which amortization has not begun. | ||||||||||||||||||||||||
Sale-Leaseback Transaction | ||||||||||||||||||||||||
On October 31, 2014, the Company executed a sale-leaseback transaction on its office located in Alpharetta, Georgia. This transaction has been treated as a financing as it did not qualify for leaseback accounting due to the presence of a sub-lease and various forms of continuing involvement in the lease. The Company recorded the net sales proceeds of approximately $56 million as a financing obligation in the other liabilities line item and the related assets continue to be included in the property and equipment, net line item on the consolidated balance sheet. | ||||||||||||||||||||||||
The obligation for future minimum lease payments and minimum sublease proceeds to be received under this lease is as follows (dollars in millions): | ||||||||||||||||||||||||
Obligation for Minimum Lease | Minimum Sublease | |||||||||||||||||||||||
Payments | Proceeds | |||||||||||||||||||||||
Years ending December 31, | ||||||||||||||||||||||||
2015 | $ | 4 | $ | (3 | ) | |||||||||||||||||||
2016 | 4 | (3 | ) | |||||||||||||||||||||
2017 | 5 | (3 | ) | |||||||||||||||||||||
2018 | 5 | (3 | ) | |||||||||||||||||||||
2019 | 5 | (3 | ) | |||||||||||||||||||||
Thereafter | 24 | (9 | ) | |||||||||||||||||||||
Total | $ | 47 | $ | (24 | ) | |||||||||||||||||||
Goodwill_and_Other_Intangibles
Goodwill and Other Intangibles, Net | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
GOODWILL AND OTHER INTANGIBLES, NET | GOODWILL AND OTHER INTANGIBLES, NET | |||||||||||||||
Goodwill | ||||||||||||||||
The following table outlines the activity in the carrying value of the Company’s goodwill, which is all assigned to the Company’s trading and investing segment (dollars in millions): | ||||||||||||||||
Trading & Investing | ||||||||||||||||
Balance at December 31, 2012 | $ | 1,934 | ||||||||||||||
Impairment of goodwill | (142 | ) | ||||||||||||||
Balance at December 31, 2013 | 1,792 | |||||||||||||||
Activity | — | |||||||||||||||
Balance at December 31, 2014 | $ | 1,792 | ||||||||||||||
Goodwill is evaluated for impairment on an annual basis as of November 30 and in interim periods when events or changes indicate the carrying value may not be recoverable. At December 31, 2014, all $1.8 billion of goodwill was allocated to the retail brokerage reporting unit within the trading and investing segment. At December 31, 2013 the Company’s trading and investing segment had two reporting units: market making and retail brokerage. | ||||||||||||||||
At the end of June 2013, the Company decided to exit its market making business. Based on this decision in the second quarter of 2013, the Company conducted an interim goodwill impairment test for the market making reporting unit, using the expected sale structure of the market making business. This structure assumed a shorter period of cash flows related to an order flow arrangement, compared to prior estimates of fair value. Based on the results of the first step of the goodwill impairment test, the Company determined that the carrying value of the market making reporting unit, including goodwill, exceeded the fair value for that reporting unit as of June 30, 2013. The Company proceeded to the second step of the goodwill impairment test to measure the amount of goodwill impairment. 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 a $142 million impairment of goodwill during the second quarter of 2013. | ||||||||||||||||
For both the years ended December 31, 2014 and 2013, the Company elected to perform a qualitative analysis for the retail brokerage reporting unit to determine whether it was more likely than not that the fair value was less than the carrying value. As a result of these assessments, the Company determined that it was not necessary to perform a quantitative impairment test and concluded that goodwill assigned to the retail brokerage reporting unit was not impaired at both December 31, 2014 and 2013. | ||||||||||||||||
At December 31, 2014 and 2013, goodwill was net of accumulated impairment losses of $142 million related to the trading and investing segment and $101 million related to the balance sheet management segment. At December 31, 2012, goodwill was net of accumulated impairment losses of $101 million related to the balance sheet management segment. | ||||||||||||||||
Other Intangibles, Net | ||||||||||||||||
In the second quarter of 2013, pursuant to the Company's decision to exit the market making business, $21 million of other intangible assets related to the market making reporting unit were reclassified as held-for-sale. These held-for-sale intangible assets have been included in the other assets line item in the consolidated balance sheet at December 31, 2013. For additional information on the market making business, see Note 2—Disposition. The following table outlines the Company's other intangible assets with finite lives consisting of customer lists, which are amortized on an accelerated basis (dollars in millions): | ||||||||||||||||
Customer Lists | ||||||||||||||||
Weighted Average | Weighted Average | Gross Amount | Accumulated | Net Amount | ||||||||||||
Original | Remaining | Amortization | ||||||||||||||
Useful Life | Useful Life | |||||||||||||||
(Years) | (Years) | |||||||||||||||
December 31, 2014 | 20 | 11 | $ | 435 | $ | (241 | ) | $ | 194 | |||||||
December 31, 2013 | 20 | 12 | $ | 435 | $ | (219 | ) | $ | 216 | |||||||
Assuming no future impairments of customer lists or additional acquisitions or dispositions, the following table presents the Company's future annual amortization expense (dollars in millions): | ||||||||||||||||
Years ending December 31, | ||||||||||||||||
2015 | $ | 20 | ||||||||||||||
2016 | 20 | |||||||||||||||
2017 | 19 | |||||||||||||||
2018 | 19 | |||||||||||||||
2019 | 18 | |||||||||||||||
Thereafter | 98 | |||||||||||||||
Total future amortization expense | $ | 194 | ||||||||||||||
Other_Assets
Other Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Assets [Abstract] | ||||||||
OTHER ASSETS | OTHER ASSETS | |||||||
Other assets consisted of the following at December 31, 2014 and 2013 (dollars in millions): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Deferred tax assets, net | $ | 951 | $ | 1,239 | ||||
Deposits paid for securities borrowed | 474 | 536 | ||||||
Held-for-sale assets(1) | — | 177 | ||||||
Other(2) | 1,158 | 869 | ||||||
Total other assets | $ | 2,583 | $ | 2,821 | ||||
-1 | Represents assets related to the market making business, which were classified as held-for-sale at December 31, 2013. | |||||||
-2 | Includes accrued interest receivable, bank and brokerage operational related receivables, derivative assets, REO and repossessed assets, third party loan servicing receivable, other prepaids and other assets. |
Deposits
Deposits | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Deposits [Abstract] | ||||||||||||||||
DEPOSITS | DEPOSITS | |||||||||||||||
Deposits are summarized as follows (dollars in millions): | ||||||||||||||||
Amount | Weighted-Average Rate | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Sweep deposits(1) | $ | 19,119 | $ | 19,592 | 0.03 | % | 0.04 | % | ||||||||
Complete savings deposits | 3,753 | 4,303 | 0.01 | % | 0.01 | % | ||||||||||
Checking deposits | 1,137 | 1,098 | 0.03 | % | 0.03 | % | ||||||||||
Other money market and savings deposits | 833 | 914 | 0.01 | % | 0.01 | % | ||||||||||
Time deposits(2) | 48 | 64 | 0.5 | % | 0.64 | % | ||||||||||
Total deposits(3) | $ | 24,890 | $ | 25,971 | 0.03 | % | 0.03 | % | ||||||||
-1 | A sweep product transfers brokerage customer balances to banking subsidiaries, which hold these funds as customer deposits in FDIC insured demand deposit and money market deposit accounts. | |||||||||||||||
-2 | Time deposits represent certificates of deposit and brokered certificates of deposit. | |||||||||||||||
-3 | As of December 31, 2014 and 2013, the Company had $141 million and $129 million in non-interest bearing deposits, respectively. | |||||||||||||||
At December 31, 2014, scheduled maturities of time deposits were as follows (dollars in millions): | ||||||||||||||||
Years ending December 31, | ||||||||||||||||
2015 | $ | 33 | ||||||||||||||
2016 | 7 | |||||||||||||||
2017 | 4 | |||||||||||||||
2018 | 3 | |||||||||||||||
2019 | 1 | |||||||||||||||
Thereafter | — | |||||||||||||||
Subtotal | 48 | |||||||||||||||
Unamortized discount, net | — | |||||||||||||||
Total time deposits | $ | 48 | ||||||||||||||
Scheduled maturities of certificates of deposit with denominations greater than or equal to $100,000, and greater than or equal to $250,000, which is the FDIC deposit insurance coverage limit, were as follows (dollars in millions): | ||||||||||||||||
>=100,000 | >=250,000 | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Three months or less | $ | 1 | $ | 1 | $ | — | $ | — | ||||||||
Three through six months | 1 | 2 | — | — | ||||||||||||
Six through twelve months | 2 | 2 | — | — | ||||||||||||
Over twelve months | 2 | 3 | 1 | 1 | ||||||||||||
Total certificates of deposit | $ | 6 | $ | 8 | $ | 1 | $ | 1 | ||||||||
Securities_Sold_Under_Agreemen
Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings | 12 Months Ended | |||||||||||||||||
Dec. 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, FHLB ADVANCES AND OTHER BORROWINGS | |||||||||||||||||
Securities sold under agreements to repurchase, FHLB advances and other borrowings at December 31, 2014 and 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 | $ | 3,022 | $ | 270 | $ | — | $ | 3,292 | 0.35% | |||||||||
Due between one and two years | 350 | 250 | — | 600 | 0.60% | |||||||||||||
Due between two and three years | 300 | 400 | — | 700 | 0.68% | |||||||||||||
Thereafter | — | — | 428 | 428 | 2.92% | |||||||||||||
Subtotal | 3,672 | 920 | 428 | 5,020 | 0.64% | |||||||||||||
Fair value hedge adjustments | — | 21 | — | 21 | ||||||||||||||
Deferred costs | — | (70 | ) | — | (70 | ) | ||||||||||||
Total other borrowings at December 31, 2014 | $ | 3,672 | $ | 871 | $ | 428 | $ | 4,971 | 0.64% | |||||||||
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 years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||
Securities Sold Under Agreements to Repurchase | ||||||||||||||||||
Repurchase agreements are collateralized by fixed- and variable-rate mortgage-backed securities or investment grade securities. The counterparties retain possession of the securities collateralizing the repurchase agreements until maturity of the repurchase agreement. At December 31, 2014, there were no counterparties with whom the Company’s amount of risk exceeded 10% of its shareholders’ equity. During the year ended December 31, 2014, the decrease in securities sold under agreements to repurchase was primarily due to the scheduled expiration of $600 million of repurchase agreements. In addition, the Company paid down in advance of maturity $100 million of its fixed-rate repurchase agreements and recorded $12 million in losses on early extinguishment of debt. During both years ended December 31, 2013 and 2012, the Company paid down in advance of maturity $100 million of its fixed-rate repurchase agreements and recorded losses on early extinguishment of debt of less than $1 million and $8 million, respectively. | ||||||||||||||||||
Below is a summary of repurchase agreements and collateral associated with the repurchase agreements at December 31, 2014 (dollars in millions): | ||||||||||||||||||
Collateral | ||||||||||||||||||
Repurchase Agreements | U.S. Government Sponsored | |||||||||||||||||
Enterprise Obligations | ||||||||||||||||||
Contractual Maturity | Weighted | Amount | Amortized Cost | Fair Value | ||||||||||||||
Average | ||||||||||||||||||
Interest Rate | ||||||||||||||||||
Up to 30 days | 0.27% | $ | 1,850 | $ | 1,916 | $ | 1,929 | |||||||||||
30 to 90 days | 0.39% | 155 | 161 | 163 | ||||||||||||||
Over 90 days | 0.64% | 1,667 | 1,729 | 1,753 | ||||||||||||||
Total | 0.44% | $ | 3,672 | $ | 3,806 | $ | 3,845 | |||||||||||
FHLB Advances and Other Borrowings | ||||||||||||||||||
FHLB Advances—The Company had $750 million in floating-rate and $170 million in fixed-rate FHLB advances at both December 31, 2014 and 2013. The floating-rate advances adjust quarterly based on LIBOR. During the year ended December 31, 2012, the Company paid down in advance of maturity $1.0 billion of its FHLB advances and recorded $69 million in losses on the early extinguishment of debt. The Company did not have any similar transactions for the years ended December 31, 2014 and 2013. | ||||||||||||||||||
As a condition of its membership in the FHLB Atlanta, the Company is required to maintain a FHLB stock investment currently equal to the lesser of: a percentage of 0.09% of total Bank assets; or a dollar cap amount of $15 million. Additionally, the Bank must maintain an Activity Based Stock investment which is currently equal to 4.5% of the Bank’s outstanding advances at the time of borrowing. The Company had an investment in FHLB stock of $88 million and $61 million at December 31, 2014 and 2013, respectively. The Company must also maintain qualified collateral as a percent of its advances, which varies based on the collateral type, and is further adjusted by the outcome of the most recent annual collateral audit and by FHLB’s internal ranking of the Bank’s creditworthiness. These advances are secured by a pool of mortgage loans and mortgage-backed securities. At December 31, 2014 and 2013, the Company pledged loans with a lendable value of $3.7 billion and $3.9 billion, respectively, of the one- to four-family and home equity loans as collateral in support of both its advances and unused borrowing lines. | ||||||||||||||||||
Other Borrowings—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 Floating Rate Cumulative Preferred Securities ("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 Floating Rate Junior Subordinated Debentures ("subordinated debentures") issued by ETBH, which guarantees the trust obligations and contributed proceeds from the sale of its subordinated debentures to E*TRADE Bank in the form of a capital contribution. The most recent issuance of trust preferred securities occurred in 2007. | ||||||||||||||||||
The face values of outstanding trusts at December 31, 2014 are shown below (dollars in millions): | ||||||||||||||||||
Trusts | Face Value | Maturity | Annual Interest Rate | |||||||||||||||
Date | ||||||||||||||||||
ETBH Capital Trust II | $ | 5 | 2031 | 10.25% | ||||||||||||||
ETBH Capital Trust I | 20 | 2031 | 3.75% above 6-month LIBOR | |||||||||||||||
ETBH Capital Trust V, VI, VIII | 51 | 2032 | 3.25%-3.65% above 3-month LIBOR | |||||||||||||||
ETBH Capital Trust VII, IX—XII | 65 | 2033 | 3.00%-3.30% above 3-month LIBOR | |||||||||||||||
ETBH Capital Trust XIII—XVIII, XX | 77 | 2034 | 2.45%-2.90% above 3-month LIBOR | |||||||||||||||
ETBH Capital Trust XIX, XXI, XXII | 60 | 2035 | 2.20%-2.40% above 3-month LIBOR | |||||||||||||||
ETBH Capital Trust XXIII—XXIV | 45 | 2036 | 2.10% above 3-month LIBOR | |||||||||||||||
ETBH Capital Trust XXV—XXX | 110 | 2037 | 1.90%-2.00% above 3-month LIBOR | |||||||||||||||
Total | $ | 433 | ||||||||||||||||
Corporate_Debt
Corporate Debt | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
CORPORATE DEBT | CORPORATE DEBT | |||||||||||
Corporate debt at December 31, 2014 and 2013 is outlined in the following table (dollars in millions): | ||||||||||||
Face Value | Discount | Net | ||||||||||
December 31, 2014 | ||||||||||||
Interest-bearing notes: | ||||||||||||
6 3/8% Notes, due 2019 | $ | 800 | $ | (5 | ) | $ | 795 | |||||
5 3/8% Notes, due 2022 | 540 | (7 | ) | 533 | ||||||||
Total interest-bearing notes | 1,340 | (12 | ) | 1,328 | ||||||||
Non-interest-bearing debt: | ||||||||||||
0% Convertible debentures, due 2019 | 38 | — | 38 | |||||||||
Total corporate debt | $ | 1,378 | $ | (12 | ) | $ | 1,366 | |||||
Face Value | Discount | Net | ||||||||||
31-Dec-13 | ||||||||||||
Interest-bearing notes: | ||||||||||||
6 3/4% Notes, due 2016 | $ | 435 | $ | (4 | ) | $ | 431 | |||||
6% Notes, due 2017 | 505 | (4 | ) | 501 | ||||||||
6 3/8% Notes, due 2019 | 800 | (6 | ) | 794 | ||||||||
Total interest-bearing notes | 1,740 | (14 | ) | 1,726 | ||||||||
Non-interest-bearing debt: | ||||||||||||
0% Convertible debentures, due 2019 | 42 | — | 42 | |||||||||
Total corporate debt | $ | 1,782 | $ | (14 | ) | $ | 1,768 | |||||
6 3/8% Notes | ||||||||||||
In November 2012, the Company issued an aggregate principal amount of $800 million in 6 3/8% Notes, due November 2019. Interest is payable semi-annually and the notes may be called by the Company beginning November 15, 2015 at a premium, which declines over time. The Company used the net proceeds from the issuance of the 6 3/8% Notes to redeem all of its outstanding 7 7/8% Notes, due December 2015 and 12 1/2% Springing Lien Notes, due November 2017, including paying the associated redemption premiums, accrued interest and related fees and expenses. The Company recorded $257 million in losses on early extinguishment of debt related to the redemption of the 7 7/8% Notes and 12 1/2% Springing Lien Notes for the year ended December 31, 2012. | ||||||||||||
5 3/8% Notes | ||||||||||||
In November 2014, the Company issued an aggregate principal amount of $540 million in 5 3/8% Notes, due November 2022. Interest is payable semi-annually and the notes may be called by the Company beginning November 15, 2017 at a premium, which declines over time. The Company used the net proceeds from the issuance of the 5 3/8% Notes, along with approximately $460 million of existing cash, to redeem all of its outstanding 6 3/4% Notes, due May 2016 and 6% Notes, due November 2017, including paying the associated redemption premiums, accrued interest and related fees and expenses. The Company recorded $59 million in losses on early extinguishment of debt related to the redemption of the 6 3/4% Notes and 6% Notes for the year ended December 31, 2014. | ||||||||||||
0% Convertible Debentures | ||||||||||||
In 2009, the Company issued an aggregate principal amount of $1.7 billion in Class A convertible debentures and $2 million in Class B convertible debentures (collectively convertible debentures or 0% Convertible debentures) of non-interest-bearing notes due August 2019, in exchange for $1.3 billion principal of the 12 1/2% Springing Lien Notes and $0.4 billion principal of the 8% Notes, due June 2011. | ||||||||||||
The Class A convertible debentures are convertible into the Company’s common stock at a conversion rate of $10.34 per $1,000 principal amount of Class A convertible debentures and the Class B convertible debentures are convertible into the Company’s common stock at a conversion rate of $15.51 per $1,000 principal amount of Class B convertible debentures. The holders of the convertible debentures may convert all or any portion of the debentures at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. At December 31, 2014, a cumulative total of $1.7 billion of the Class A convertible debentures and $2 million of the Class B convertible debentures had been converted into 164.6 million shares and 0.1 million shares, respectively, of the Company’s common stock. | ||||||||||||
Credit Facility | ||||||||||||
In November 2014, the Company entered into a $200 million senior secured revolving credit facility that expires in November 2017. The Company has the ability to borrow against the credit facility for working capital and general corporate purposes. The credit facility contains certain maintenance covenants, including the requirement for the parent company to maintain unrestricted cash of $100 million. At December 31, 2014, there was no outstanding balance under this credit facility. | ||||||||||||
Ranking and Subsidiary Guarantees | ||||||||||||
All of the Company’s notes rank equal in right of payment with all of the Company’s existing and future unsubordinated indebtedness and rank senior in right of payment to all its existing and future subordinated indebtedness. However, the notes rank effectively junior to the Company's secured indebtedness to the extent of the collateral securing such indebtedness, including any debt drawn under the Company's $200 million senior secured revolving credit facility. | ||||||||||||
In June 2011, certain of the Company’s subsidiaries issued guarantees on the 0% Convertible debentures. E*TRADE Bank and E*TRADE Securities LLC, among others, did not issue such guarantees. | ||||||||||||
Corporate Debt Covenants | ||||||||||||
The Company’s corporate debt and credit facility described above have terms which include financial maintenance covenants. At December 31, 2014, the Company was in compliance with all such maintenance covenants. | ||||||||||||
Future Maturities of Corporate Debt | ||||||||||||
Scheduled principal payments of corporate debt at December 31, 2014 were as follows (dollars in millions): | ||||||||||||
Years ending December 31, | ||||||||||||
2015 | $ | — | ||||||||||
2016 | — | |||||||||||
2017 | — | |||||||||||
2018 | — | |||||||||||
2019 | 800 | |||||||||||
Thereafter | 578 | |||||||||||
Total future principal payments of corporate debt | 1,378 | |||||||||||
Unamortized discount | (12 | ) | ||||||||||
Total corporate debt | $ | 1,366 | ||||||||||
Other_Liabilities
Other Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ||||||||
OTHER LIABILITIES | OTHER LIABILITIES | |||||||
Other liabilities consisted of the following at December 31, 2014 and 2013 (dollars in millions): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Deposits received for securities loaned | $ | 1,649 | $ | 1,050 | ||||
Held-for-sale liabilities(1) | — | 107 | ||||||
Other(2) | 824 | 396 | ||||||
Total other liabilities | $ | 2,473 | $ | 1,553 | ||||
-1 | Represents liabilities related to the market making business, which was classified as held-for-sale at December 31, 2013. | |||||||
-2 | Includes accounts payable, accrued expenses, bank and brokerage operational related payables, derivative liabilities, financing obligations, income tax liabilities and other liabilities. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
INCOME TAXES | INCOME TAXES | |||||||||||
The components of income tax expense (benefit) for the years ended December 31, 2014, 2013 and 2012 were as follows (dollars in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State | 4 | 3 | 3 | |||||||||
Foreign | — | — | — | |||||||||
Total current | 4 | 3 | 3 | |||||||||
Deferred: | ||||||||||||
Federal | 152 | 127 | (137 | ) | ||||||||
State | 3 | (20 | ) | — | ||||||||
Foreign | — | — | — | |||||||||
Total deferred | 155 | 107 | (137 | ) | ||||||||
Non-current tax expense (benefit) | — | (1 | ) | 116 | ||||||||
Income tax expense (benefit) | $ | 159 | $ | 109 | $ | (18 | ) | |||||
Non-current tax expense (benefit) relates to tax expense (benefit) associated with the reserves for uncertain tax positions. The following table presents the components of income (loss) before income tax expense (benefit) for the years ended December 31, 2014, 2013 and 2012 (dollars in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 438 | $ | 186 | $ | (135 | ) | |||||
Foreign | 14 | 9 | 4 | |||||||||
Income (loss) before income tax expense (benefit) | $ | 452 | $ | 195 | $ | (131 | ) | |||||
Unrecognized Tax Benefits | ||||||||||||
The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012 (dollars in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits, beginning of period | $ | 333 | $ | 492 | $ | 377 | ||||||
Additions based on tax positions related to prior years | 12 | 10 | 131 | |||||||||
Additions based on tax positions related to current year | — | — | 8 | |||||||||
Reductions based on tax positions related to prior years | (14 | ) | (163 | ) | (23 | ) | ||||||
Settlements with taxing authorities | — | (5 | ) | — | ||||||||
Statute of limitations lapses | (1 | ) | (1 | ) | (1 | ) | ||||||
Unrecognized tax benefits, end of period | $ | 330 | $ | 333 | $ | 492 | ||||||
Unrecognized tax benefits decreased $3 million to $330 million during the year ended December 31, 2014. At December 31, 2014, $270 million (net of federal benefits on state issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate in future periods. | ||||||||||||
In 2012, the Internal Revenue Service sent an examination notification to the Company related to its 2007, 2009 and 2010 federal tax returns. While the Company cannot predict the outcome of the examination, it believes that adequate provision has been made for any of the Company’s uncertain tax positions. Uncertain tax positions are only recognized to the extent they satisfy the accounting for uncertain tax positions criteria included in the income taxes accounting guidance, which states that in order to recognize an uncertain tax position it must be more likely than not that it will be sustained upon examination. For uncertain tax positions, tax benefit is recognized for positions in which it is more than fifty percent likely of being sustained on effective settlement. | ||||||||||||
The following table summarizes the tax years that are either currently under examination or remain open under the statute of limitations and subject to examination by the major tax jurisdictions in which the Company operates: | ||||||||||||
Jurisdiction | Open Tax Years | |||||||||||
Hong Kong | 2008-2014 | |||||||||||
United Kingdom | 2012-2014 | |||||||||||
United States | 2004-2014 | |||||||||||
Various states(1) | 2007-2014 | |||||||||||
-1 | Major state tax jurisdictions include California, Georgia, Illinois, New Jersey, New York and Virginia. | |||||||||||
It is reasonably possible that the Company's unrecognized tax benefits could be reduced by as much as $151 million within the next twelve months as a result of settlements of certain examinations or expiration of statutes of limitations. | ||||||||||||
The Company’s practice is to recognize interest and penalties, if any, related to income tax matters in income tax expense. The Company has total reserves for interest and penalties of $21 million and $20 million as of December 31, 2014 and 2013, respectively. The tax expense for the year ended December 31, 2014 includes an increase in the accrual for interest and penalties of $1 million, principally related to state taxes. | ||||||||||||
Deferred Taxes and Valuation Allowance | ||||||||||||
Deferred income taxes are recorded when revenues and expenses are recognized in different periods for financial statement and tax return purposes. The temporary differences and tax carryforwards that created deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 are summarized in the following table (dollars in millions): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating losses | $ | 632 | $ | 572 | ||||||||
Reserves and allowances, net | 601 | 891 | ||||||||||
Mark to market | 110 | 125 | ||||||||||
Deferred compensation | 43 | 36 | ||||||||||
Tax credits | 37 | 31 | ||||||||||
Basis differences in investments | 9 | 12 | ||||||||||
Other | 1 | 7 | ||||||||||
Total deferred tax assets | 1,433 | 1,674 | ||||||||||
Valuation allowance | (91 | ) | (82 | ) | ||||||||
Total deferred tax assets, net of valuation allowance | 1,342 | 1,592 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation and amortization | (387 | ) | (353 | ) | ||||||||
Other | (4 | ) | — | |||||||||
Total deferred tax liabilities | (391 | ) | (353 | ) | ||||||||
Net deferred tax asset | $ | 951 | $ | 1,239 | ||||||||
The Company is required to establish a valuation allowance for deferred tax assets and record a corresponding increase to income tax expense if it is determined, based on evaluation of available evidence at the time the determination is made, that it is more likely than not that some or all of the deferred tax assets will not be realized. If the Company were to conclude that a valuation allowance was required, the resulting loss could have a material adverse effect on its financial condition and results of operations. As of December 31, 2014, the Company did not establish a valuation allowance against its federal deferred tax assets as it believes that it is more likely than not that all of these assets will be realized. Approximately 40% of existing federal deferred tax assets is not related to net operating losses and therefore, have no expiration date. The Company ended 2014 with $1,937 million of gross federal net operating losses, the majority of which will expire within the next 13 years. The increase in the net operating losses deferred tax asset was primarily driven by additional tax deductions related to prior years. | ||||||||||||
The Company’s evaluation of the need for a valuation allowance focused on identifying significant, objective evidence that it will be able to realize its deferred tax assets in the future. The Company determined that its expectations regarding future earnings are objectively verifiable due to various factors. One factor is the consistent profitability of the Company’s core business, the trading and investing segment, which has generated substantial income for each of the last 11 years, including through uncertain economic and regulatory environments. The core business is driven by brokerage customer activity and includes trading, brokerage related cash, margin lending, retirement and investing, and other brokerage related activities. These activities drive variable expenses that correlate to the volume of customer activity, which has resulted in stable, ongoing profitability. | ||||||||||||
Another factor is the mitigation of losses in the balance sheet management segment, which generated a large net operating loss in 2007 caused by the crisis in the residential real estate and credit markets. Much of this loss came from the sale of the asset-backed securities portfolio and credit losses from the mortgage loan portfolio. The Company no longer holds any of those asset-backed securities and shut down mortgage loan acquisition activities in 2007. In effect, the key business activities that led to the generation of the deferred tax assets were shut down over seven years ago. In addition, we have realized the benefits of various credit loss mitigation activities and improving economic conditions, including home price improvement related to our loan portfolio. As a result, the losses have continued to decline significantly and the balance sheet management segment has been profitable since 2012. | ||||||||||||
The Company's valuation allowance for deferred tax assets increased $9 million to $91 million at December 31, 2014. The principal components of the deferred tax assets for which a valuation allowance has been established include the following state and foreign country net operating loss carryforwards and charitable contributions which have a limited carryforward period: | ||||||||||||
• | At December 31, 2014, the Company had certain gross foreign country net operating loss carryforwards of $121 million and other foreign country temporary differences of approximately $19 million for which a deferred tax asset of approximately $32 million was established. The foreign net operating losses represent the foreign tax loss carryforwards in numerous foreign countries, the vast majority of which are not subject to expiration. In most of these foreign countries, the Company has historical tax losses; accordingly, the Company has provided a valuation allowance of $32 million against such deferred tax assets at December 31, 2014. | |||||||||||
• | At December 31, 2014, the Company had gross state net operating loss carryforwards that expire between 2015 and 2033 in several states of $3.8 billion, most of which are subject to change by corresponding changes in apportionment. At December 31, 2014, we had total state deferred tax assets of approximately $143 million that related to the Company's state net operating loss carryforwards and temporary differences with a valuation allowance of $48 million against such deferred tax assets. | |||||||||||
• | At December 31, 2014, the Company had charitable contribution carryforwards of $27 million that expire between 2015 and 2017. A deferred tax asset of approximately $11 million was established with a corresponding $11 million valuation allowance as it is more likely than not that these contributions will expire unused. | |||||||||||
The Company does not intend to permanently reinvest any undistributed earnings and profits in foreign subsidiaries. As a result, the Company has fully recorded income taxes on those earnings at December 31, 2014. | ||||||||||||
Effective Tax Rate | ||||||||||||
The effective tax rate differed from the federal statutory rate as summarized in the following table for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory rate | 35 | % | 35 | % | (35.0 | )% | ||||||
State income taxes, net of federal tax benefit | 2 | 2.8 | (11.8 | ) | ||||||||
Difference between statutory rate and foreign effective tax rate | (1.0 | ) | (1.4 | ) | (1.1 | ) | ||||||
Tax exempt income | (0.1 | ) | (0.3 | ) | (0.4 | ) | ||||||
Disallowed interest expense | — | — | 10.3 | |||||||||
Change in valuation allowance | 2.2 | 1.1 | 6.9 | |||||||||
2009 Debt Exchange | — | — | (19.7 | ) | ||||||||
Tax credits | (0.6 | ) | (1.8 | ) | (12.2 | ) | ||||||
California state tax legislative changes | — | — | 19.2 | |||||||||
Estimated reserve for uncertain tax positions | (0.3 | ) | (2.6 | ) | 9.1 | |||||||
Deferred tax adjustments | (1.6 | ) | 4.5 | 8.4 | ||||||||
Disallowed losses on early extinguishment of debt | — | — | 7.4 | |||||||||
Tax on undistributed earnings and profits in certain foreign subsidiaries | 1.1 | 2.4 | 2.5 | |||||||||
New York state tax legislative changes | (1.8 | ) | — | — | ||||||||
Tax impact of exit of market making business | — | 16.4 | — | |||||||||
Other | 0.3 | (0.2 | ) | 2.4 | ||||||||
Effective tax rate | 35.2 | % | 55.9 | % | (14.0 | )% | ||||||
Tax Ownership Change | ||||||||||||
During the third quarter of 2009, the Company exchanged $1.7 billion principal amount of interest-bearing debt for an equal principal amount of non-interest-bearing convertible debentures. Subsequent to the 2009 Debt Exchange, $592 million and $129 million debentures were converted into 57 million and 13 million shares of common stock during the third and fourth quarters of 2009, respectively. As a result of these conversions, the Company believes it experienced a tax ownership change during the third quarter of 2009. | ||||||||||||
As of the date of the ownership change, the Company had federal NOLs available to carryforward of approximately $1,886 million. This amount includes $480 million in federal NOLs that were recorded in the third quarter of 2012 due to amended tax returns filed related primarily to additional tax deductions on the 2009 Debt Exchange and additional tax losses on bad debts. Section 382 imposes an annual limitation on the use of a corporation’s NOLs, certain recognized built-in losses and other carryovers after an "ownership change" occurs. Section 382 rules governing when a change in ownership occurs are complex and subject to interpretation; however, an ownership change generally occurs when there has been a cumulative change in the stock ownership of a corporation by certain "5% shareholders" of more than 50 percentage points over a rolling three-year period. | ||||||||||||
Section 382 imposes an annual limitation on the amount of post-ownership change taxable income a corporation may offset with pre-ownership change NOLs. In general, the annual limitation is determined by multiplying the value of the corporation’s stock immediately before the ownership change (subject to certain adjustments) by the applicable long-term tax-exempt rate. Any unused portion of the annual limitation is available for use in future years until such NOLs are scheduled to expire (in general, NOLs may be carried forward 20 years). In addition, the limitation may, under certain circumstances, be increased or decreased by built-in gains or losses, respectively, which may be present with respect to assets held at the time of the ownership change that are recognized in the five-year period (one-year for loans) after the ownership change. The use of NOLs arising after the date of an ownership change would not be affected unless a corporation experienced an additional ownership change in a future period. | ||||||||||||
The Company believes the tax ownership change will extend the period of time it will take to fully utilize its pre-ownership change NOLs, but will not limit the total amount of pre-ownership change federal NOLs it can utilize. The Company’s updated estimate is that it will be subject to an overall annual limitation on the use of its pre-ownership change NOLs of approximately $194 million. The Company’s overall pre-ownership change federal NOLs, which were approximately $1,886 million, have a statutory carryforward period of 20 years (the majority of which expire in 13 years). As a result, the Company believes it will be able to fully utilize these NOLs in future periods. | ||||||||||||
The Company’s ability to utilize the pre-ownership change NOLs is dependent on its ability to generate sufficient taxable income over the duration of the carryforward periods and will not be impacted by its ability or inability to generate taxable income in an individual year. |
Shareholders_Equity
Shareholder's Equity | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Accumulated Other Comprehensive Loss | SHAREHOLDER'S EQUITY | |||||||||||||||
The activity in shareholders’ equity during the year ended December 31, 2014 is summarized in the following table (dollars in millions): | ||||||||||||||||
Common Stock / | Accumulated Deficit / | Total | ||||||||||||||
Additional Paid-In | Other Comprehensive | |||||||||||||||
Capital | Loss | |||||||||||||||
Beginning balance, December 31, 2013 | $ | 7,331 | $ | (2,475 | ) | $ | 4,856 | |||||||||
Net income | — | 293 | 293 | |||||||||||||
Net change from available-for-sale securities | — | 167 | 167 | |||||||||||||
Net change from cash flow hedging instruments | — | 37 | 37 | |||||||||||||
Other(1) | 22 | — | 22 | |||||||||||||
Ending balance, December 31, 2014 | $ | 7,353 | $ | (1,978 | ) | $ | 5,375 | |||||||||
-1 | Other includes employee share-based compensation and conversions of convertible debentures. | |||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||
The following tables present after-tax changes in each component of accumulated other comprehensive loss for the years ended December 31, 2014, 2013 and 2012 (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 | 193 | (39 | ) | — | 154 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | (26 | ) | 76 | — | 50 | |||||||||||
Net change | 167 | 37 | — | 204 | ||||||||||||
Ending balance, December 31, 2014 | $ | 7 | $ | (261 | ) | $ | 5 | $ | (249 | ) | ||||||
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 | (260 | ) | 67 | — | (193 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | (37 | ) | 87 | — | 50 | |||||||||||
Net change | (297 | ) | 154 | — | (143 | ) | ||||||||||
Ending balance, December 31, 2013 | $ | (160 | ) | $ | (298 | ) | $ | 5 | $ | (453 | ) | |||||
Available-for-sale | Cash Flow | Foreign | Total | |||||||||||||
Securities | Hedging | Currency | ||||||||||||||
Instruments | Translation | |||||||||||||||
Beginning balance, December 31, 2011 | $ | 68 | $ | (458 | ) | $ | 3 | $ | (387 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 197 | (72 | ) | 2 | 127 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | (128 | ) | 78 | — | (50 | ) | ||||||||||
Net change | 69 | 6 | 2 | 77 | ||||||||||||
Beginning balance, December 31, 2012 | $ | 137 | $ | (452 | ) | $ | 5 | $ | (310 | ) | ||||||
The following table presents the income statement line items impacted by reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||
Accumulated Other Comprehensive Loss Components | Amounts Reclassified from Accumulated Other Comprehensive Loss | Affected Line Items in the Consolidated Statement of Income (Loss) | ||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
$ | 42 | $ | 60 | Gains on loans and securities, net | ||||||||||||
(16 | ) | (23 | ) | Tax expense (benefit) | ||||||||||||
$ | 26 | $ | 37 | Reclassification into earnings, net | ||||||||||||
Cash flow hedging instruments: | ||||||||||||||||
$ | — | $ | 8 | Operating interest income | ||||||||||||
(125 | ) | (147 | ) | Operating interest expense | ||||||||||||
(125 | ) | (139 | ) | Reclassification into earnings, before tax | ||||||||||||
49 | 52 | Tax expense (benefit) | ||||||||||||||
$ | (76 | ) | $ | (87 | ) | Reclassification into earnings, net | ||||||||||
Preferred Stock | ||||||||||||||||
The Company has 1 million shares authorized in preferred stock. None were issued or outstanding at December 31, 2014 or 2013. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
EARNINGS PER SHARE | EARNINGS (LOSS) PER SHARE | |||||||||||
The following table presents a reconciliation of basic and diluted earnings (loss) per share (in millions, except share data and per share amounts): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic: | ||||||||||||
Net income (loss) | $ | 293 | $ | 86 | $ | (113 | ) | |||||
Basic weighted-average shares outstanding (in thousands) | 288,705 | 286,991 | 285,748 | |||||||||
Basic earnings (loss) per share | $ | 1.02 | $ | 0.3 | $ | (0.39 | ) | |||||
Diluted: | ||||||||||||
Net income (loss) | $ | 293 | $ | 86 | $ | (113 | ) | |||||
Basic weighted-average shares outstanding (in thousands) | 288,705 | 286,991 | 285,748 | |||||||||
Effect of dilutive securities: | ||||||||||||
Weighted-average convertible debentures (in thousands) | 3,999 | 4,125 | — | |||||||||
Weighted-average options and restricted stock issued to employees (in thousands) | 1,399 | 1,473 | — | |||||||||
Diluted weighted-average shares outstanding (in thousands) | 294,103 | 292,589 | 285,748 | |||||||||
Diluted earnings (loss) per share | $ | 1 | $ | 0.29 | $ | (0.39 | ) | |||||
The Company excluded the following shares from the calculations of diluted earnings (loss) per share for the years ended December 31, 2014, 2013 and 2012 as the effect would have been anti-dilutive (shares in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Weighted-average shares excluded as a result of the Company’s net loss: | ||||||||||||
Convertible debentures | N/A | N/A | 4.1 | |||||||||
Stock options and restricted stock awards and units | N/A | N/A | 0.4 | |||||||||
Other stock options and restricted stock awards and units | 0.5 | 1.7 | 2.5 | |||||||||
Total | 0.5 | 1.7 | 7 | |||||||||
Regulatory_Requirements
Regulatory Requirements | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||||
REGULATORY REQUIREMENTS | REGULATORY REQUIREMENTS | |||||||||||||||||
Registered Broker-Dealers | ||||||||||||||||||
The Company’s 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 December 31, 2014 and 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 December 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||
Required Net | Net Capital | Excess Net | ||||||||||||||||
Capital | Capital | |||||||||||||||||
December 31, 2014: | ||||||||||||||||||
E*TRADE Clearing LLC(1) | $ | 170 | $ | 795 | $ | 625 | ||||||||||||
E*TRADE Securities LLC(1)(2) | — | 459 | 459 | |||||||||||||||
Other broker-dealers | 1 | 19 | 18 | |||||||||||||||
Total | $ | 171 | $ | 1,273 | $ | 1,102 | ||||||||||||
December 31, 2013: | ||||||||||||||||||
E*TRADE Clearing LLC(1) | $ | 144 | $ | 715 | $ | 571 | ||||||||||||
E*TRADE Securities LLC(1) | — | 261 | 261 | |||||||||||||||
G1 Execution Services, LLC(3) | 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 | E*TRADE Securities LLC was moved from under E*TRADE Bank in February 2015 and subsequently paid a dividend of $434 million to the parent company. | |||||||||||||||||
-3 | 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 December 31, 2014 and 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 December 31, 2014 and 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 | ||||||||||||||
December 31, 2014: | ||||||||||||||||||
Total capital | $ | 4,772 | 26.93 | % | $ | 1,772 | 10 | % | $ | 3,000 | ||||||||
Tier 1 capital | $ | 4,548 | 25.67 | % | $ | 1,063 | 6 | % | $ | 3,485 | ||||||||
Tier 1 leverage | $ | 4,548 | 10.61 | % | $ | 2,143 | 5 | % | $ | 2,405 | ||||||||
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 | ||||||||
Lease_Arrangements
Lease Arrangements | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Leases [Abstract] | ||||
LEASE ARRANGEMENTS | LEASE ARRANGEMENTS | |||
The Company has non-cancelable operating leases for facilities through 2025. Future minimum lease payments and sublease proceeds under these leases with initial or remaining terms in excess of one year, including leases involved in facility restructurings, are as follows (dollars in millions): | ||||
Operating Lease | ||||
Commitments | ||||
Years ending December 31, | ||||
2015 | $ | 25 | ||
2016 | 25 | |||
2017 | 24 | |||
2018 | 21 | |||
2019 | 19 | |||
Thereafter | 31 | |||
Total future minimum lease payments | $ | 145 | ||
Sublease proceeds | (4 | ) | ||
Net lease commitments | $ | 141 | ||
Certain leases contain provisions for renewal options and rent escalations based on increases in certain costs incurred by the lessor. Rent expense, net of sublease income, was $21 million, $22 million and $23 million for the years ended December 31, 2014, 2013 and 2012, respectively. Rent expense, which is recorded in the occupancy and equipment line item in the consolidated statement of income (loss), excludes costs related to leases involved in facility restructurings, which are recorded in the facility restructuring and other exit activities line item in the consolidated statement of income (loss). | ||||
On October 31, 2014, the Company executed a sale-leaseback transaction on its office located in Alpharetta, Georgia. See Note 9—Property and Equipment, Net for more information. |
Commitments_Contingencies_and_
Commitments, Contingencies and Other Regulatory Matters | 12 Months Ended |
Dec. 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 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. 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. 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. The testimonial phase of the third trial in this matter concluded on June 12, 2012. By order dated May 28, 2014, the Court determined to conduct a second phase of this bench trial to allow Ajaxo to attempt to prove entitlement to additional royalties. Hearings in phase two of the trial concluded January 8, 2015, and final written closing statements will be submitted March 16, 2015. 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 defendants' petitions for covered business method reviews were denied by the Patent and Trademark Appeals Board. Motions for summary judgment were filed in the U.S. District Court in August 2014 and the parties await the decision. 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. On April 22, 2014, the Court issued its protocols for dismissal motions for those defendants who were "mere conduits" who facilitated the transactions at issue. The motion to dismiss Count I of the Fifth Amended Complaint for failure to state a cause of action was fully briefed on July 2, 2014, and the parties await decision on that motion. 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. On October 20, 2014, the Court sustained the Company's demurrer, dismissing four counts of the second amended complaint with prejudice and two counts without prejudice. The plaintiffs filed a third amended complaint on November 10, 2014. The Company filed a third demurrer and motion to strike on December 12, 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. On June 13, 2014, a putative class action was filed by James J. Flynn and Dominic Morelli against twenty-six firms including the Company in the United States District Court for the Southern District of New York. The Flynn Complaint made allegations substantially similar to the allegations in the City of Providence Complaint. The consolidated amended complaint does not identify the Company as a defendant or make any allegations regarding the Company. | |
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. 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 October 2014, E*TRADE Securities LLC and G1 Execution Services, LLC reached a settlement with the SEC in connection with effecting the sale of certain "penny stock" securities on behalf of three former customers without an applicable exemption from the registration provisions of the federal securities laws during the period 2007 to 2011. Without admitting or denying the SEC's findings, E*TRADE Securities LLC and G1 Execution Services, LLC entered into a settlement pursuant to which they agreed to be censured and consented to an order of the SEC requiring them to cease and desist from committing or causing future violations of the registration provisions of the Securities Act of 1933. Pursuant to the settlement agreement, E*TRADE Securities LLC and G1 Execution Services, LLC agreed to pay approximately $1.6 million in disgorgement and prejudgment interest on commissions and a $1 million penalty. | |
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. | |
The Company’s equity and cost method investments are generally limited liability investments in partnerships, companies and other similar entities, including tax credit partnerships and community development entities, that are not required to be consolidated. The Company had $40 million in unfunded commitments with respect to these investments at December 31, 2014. | |
At December 31, 2014, the Company had approximately $33 million of certificates of deposit scheduled to mature in less than one year and $169 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 December 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 | 12 Months Ended | |||||||||||||||
Dec. 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; deposits and customer payables; and credit, liquidity and interest rate risk. The balance sheet management segment utilizes deposits and customer payables 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): | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
Net operating interest income | $ | 632 | $ | 455 | $ | 1 | $ | 1,088 | ||||||||
Total non-interest income | 683 | 43 | — | 726 | ||||||||||||
Total net revenue | 1,315 | 498 | 1 | 1,814 | ||||||||||||
Provision for loan losses | — | 36 | — | 36 | ||||||||||||
Total operating expense | 766 | 148 | 231 | 1,145 | ||||||||||||
Income (loss) before other income (expense) and income taxes | 549 | 314 | (230 | ) | 633 | |||||||||||
Total other income (expense) | — | — | (181 | ) | (181 | ) | ||||||||||
Income (loss) before income taxes | $ | 549 | $ | 314 | $ | (411 | ) | $ | 452 | |||||||
Income tax expense | 159 | |||||||||||||||
Net income | $ | 293 | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
Net operating interest income | $ | 540 | $ | 442 | $ | — | $ | 982 | ||||||||
Total non-interest income | 677 | 64 | — | 741 | ||||||||||||
Total net revenue | 1,217 | 506 | — | 1,723 | ||||||||||||
Provision for loan losses | — | 143 | — | 143 | ||||||||||||
Total operating expense | 883 | 179 | 213 | 1,275 | ||||||||||||
Income (loss) before other income (expense) and income taxes | 334 | 184 | (213 | ) | 305 | |||||||||||
Total other income (expense) | — | — | (110 | ) | (110 | ) | ||||||||||
Income (loss) before income taxes | $ | 334 | $ | 184 | $ | (323 | ) | $ | 195 | |||||||
Income tax expense | 109 | |||||||||||||||
Net income | $ | 86 | ||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
Net operating interest income | $ | 641 | $ | 444 | $ | — | $ | 1,085 | ||||||||
Total non-interest income | 622 | 193 | — | 815 | ||||||||||||
Total net revenue | 1,263 | 637 | — | 1,900 | ||||||||||||
Provision for loan losses | — | 355 | — | 355 | ||||||||||||
Total operating expense | 769 | 220 | 173 | 1,162 | ||||||||||||
Income (loss) before other income (expense) and income taxes | 494 | 62 | (173 | ) | 383 | |||||||||||
Total other income (expense) | — | — | (514 | ) | (514 | ) | ||||||||||
Income (loss) before income taxes | $ | 494 | $ | 62 | $ | (687 | ) | $ | (131 | ) | ||||||
Income tax (benefit) | (18 | ) | ||||||||||||||
Net loss | $ | (113 | ) | |||||||||||||
Total other income (expense) included losses on early extinguishment of corporate debt of $59 million and $257 million during the years ended December 31, 2014 and 2012, respectively. For additional information refer to Note 14—Corporate Debt. | ||||||||||||||||
Segment Assets | ||||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
As of December 31, 2014 | $ | 12,032 | $ | 33,075 | $ | 423 | $ | 45,530 | ||||||||
As of December 31, 2013 | $ | 10,820 | $ | 34,784 | $ | 676 | $ | 46,280 | ||||||||
As of December 31, 2012 | $ | 9,505 | $ | 37,306 | $ | 576 | $ | 47,387 | ||||||||
Assets and total net revenue attributable to international locations were not material for the periods presented. No single customer accounts for greater than 10% of gross revenues for any of the years ended December 31, 2014, 2013 and 2012. |
Condensed_Financial_Informatio
Condensed Financial Information (Parent Company Only) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) | CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) | |||||||||||
The following presents the parent company’s condensed statement of comprehensive income (loss), balance sheet and statement of cash flows: | ||||||||||||
CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||
(In millions) | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Dividends from subsidiaries | $ | 311 | $ | 193 | $ | 99 | ||||||
Other revenues | 333 | 281 | 270 | |||||||||
Total net revenue | 644 | 474 | 369 | |||||||||
Total operating expense | 421 | 359 | 339 | |||||||||
Income before other income (expense), income tax benefit, and equity in income of consolidated subsidiaries | 223 | 115 | 30 | |||||||||
Total other income (expense) | (166 | ) | (108 | ) | (434 | ) | ||||||
Income (loss) before income tax benefit and equity in income of consolidated subsidiaries | 57 | 7 | (404 | ) | ||||||||
Income tax benefit | (88 | ) | (76 | ) | (188 | ) | ||||||
Equity in undistributed income of subsidiaries | 148 | 3 | 103 | |||||||||
Net income (loss) | 293 | 86 | (113 | ) | ||||||||
Other comprehensive income (loss) | 204 | (143 | ) | 77 | ||||||||
Comprehensive income (loss) | $ | 497 | $ | (57 | ) | $ | (36 | ) | ||||
CONDENSED BALANCE SHEET | ||||||||||||
(In millions) | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
ASSETS | ||||||||||||
Cash and equivalents | $ | 220 | $ | 406 | ||||||||
Property and equipment, net | 165 | 137 | ||||||||||
Investment in consolidated subsidiaries | 5,763 | 5,445 | ||||||||||
Receivable from subsidiaries | 31 | 36 | ||||||||||
Other assets | 745 | 710 | ||||||||||
Total assets | $ | 6,924 | $ | 6,734 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Corporate debt | $ | 1,366 | $ | 1,768 | ||||||||
Other liabilities | 183 | 110 | ||||||||||
Total liabilities | 1,549 | 1,878 | ||||||||||
Total shareholders’ equity | 5,375 | 4,856 | ||||||||||
Total liabilities and shareholders’ equity | $ | 6,924 | $ | 6,734 | ||||||||
CONDENSED STATEMENT OF CASH FLOWS | ||||||||||||
(In millions) | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | 293 | $ | 86 | $ | (113 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 38 | 40 | 50 | |||||||||
Equity in undistributed income from subsidiaries | (148 | ) | (3 | ) | (103 | ) | ||||||
Losses on early extinguishment of debt | 6 | — | 137 | |||||||||
Other | (44 | ) | (15 | ) | 45 | |||||||
Net effect of decrease in other assets | 19 | 15 | 23 | |||||||||
Net effect of decrease in other liabilities | (3 | ) | (60 | ) | (178 | ) | ||||||
Net cash provided by (used in) operating activities | 161 | 63 | (139 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures for property and equipment | (62 | ) | (24 | ) | (27 | ) | ||||||
Proceeds from sale of subsidiary | 76 | — | — | |||||||||
Cash contributions to subsidiaries | (29 | ) | (39 | ) | (26 | ) | ||||||
Other | — | 4 | 3 | |||||||||
Net cash used in investing activities | (15 | ) | (59 | ) | (50 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net proceeds from issuance of senior notes | 540 | — | 1,305 | |||||||||
Payments on senior and springing lien notes | (940 | ) | — | (1,174 | ) | |||||||
Other | 68 | 2 | (21 | ) | ||||||||
Net cash provided by financing activities | (332 | ) | 2 | 110 | ||||||||
(Decrease) increase in cash and equivalents | (186 | ) | 6 | (79 | ) | |||||||
Cash and equivalents, beginning of period | 406 | 400 | 479 | |||||||||
Cash and equivalents, end of period | $ | 220 | $ | 406 | $ | 400 | ||||||
Parent Company Guarantees | ||||||||||||
Guarantees are contingent commitments issued by the Company for the purpose of guaranteeing the financial obligations of a subsidiary to a financial institution. The financial obligations of the Company and the relevant subsidiary do not change by the existence of a corporate guarantee. Rather, upon the occurrence of certain events, the guarantee shifts ultimate payment responsibility of an existing financial obligation from the relevant subsidiary to the guaranteeing parent company. | ||||||||||||
The Company issues guarantees for the settlement of foreign exchange transactions. If a subsidiary fails to deliver currency on the settlement date of a foreign exchange arrangement, the beneficiary financial institution may seek payment from the Company. Terms are undefined, and are governed by the terms of the underlying financial obligation. At December 31, 2014, no claims had been made against the Company for payment under these guarantees and thus, no obligations have been recorded. None of these guarantees are collateralized. |
Quarterly_Data_Unaudited
Quarterly Data (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Quarterly Data (Unaudited) | QUARTERLY DATA (UNAUDITED) | |||||||||||||||||||||||||||||||
The information presented below reflects all adjustments, which, in the opinion of management, are of a normal and recurring nature necessary to present fairly the results of operations for the quarterly periods presented (dollars in millions, except per share amounts): | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||||||||
Total net revenue | $ | 475 | $ | 438 | $ | 440 | $ | 461 | $ | 420 | $ | 440 | $ | 417 | $ | 446 | ||||||||||||||||
Net income (loss) | $ | 97 | $ | 69 | $ | 86 | $ | 41 | $ | 35 | $ | (54 | ) | $ | 47 | $ | 58 | |||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.34 | $ | 0.24 | $ | 0.3 | $ | 0.14 | $ | 0.12 | $ | (0.19 | ) | $ | 0.17 | $ | 0.2 | |||||||||||||||
Diluted | $ | 0.33 | $ | 0.24 | $ | 0.29 | $ | 0.14 | $ | 0.12 | $ | (0.19 | ) | $ | 0.16 | $ | 0.2 | |||||||||||||||
In the second quarter of 2013, the net loss was due to $142 million in impairment of goodwill as a result of the decision to exit the market making business. For additional information on the impairment of goodwill, see Note 10—Goodwill and Other Intangibles, Net. | ||||||||||||||||||||||||||||||||
In the fourth quarter of 2014, the decrease in net income was primarily due to $59 million pre-tax losses on early extinguishment of debt related to the redemption of the 6 3/4% Notes and 6% Notes. For additional information on the redemption of corporate debt, see Note 14—Corporate Debt. |
Organization_Basis_of_Presenta1
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 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, to retail investors. The Company’s most significant subsidiaries are described below: | |
• | E*TRADE Securities LLC is a registered broker-dealer and is the primary provider of brokerage products and services to the Company’s customers; | |
• | E*TRADE Clearing LLC is the clearing firm for the Company’s brokerage subsidiaries and its main purpose is to clear and settle securities transactions for customers of E*TRADE Securities LLC; | |
• | E*TRADE Bank is a federally chartered savings bank utilized by E*TRADE's broker-dealers to maximize the value of customer deposits. It provides the Company's customers with FDIC insurance on a certain amount of customer deposits and provides other banking products to its customers; and | |
• | E*TRADE Financial Corporate Services is an operating subsidiary of the parent company and is the provider of software and services for managing equity compensation plans to our corporate customers. | |
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 International Group, LLP. The sale generated cash proceeds of $76 million. | ||
As of December 31, 2014, the Company's two primary U.S. broker-dealers, E*TRADE Clearing LLC and E*TRADE Securities LLC, were operating subsidiaries of E*TRADE Bank. The Company recently received regulatory approval to move both E*TRADE Clearing LLC and E*TRADE Securities LLC out from under E*TRADE Bank. E*TRADE Securities LLC was moved out from under E*TRADE Bank in February 2015 and we plan to move E*TRADE Clearing LLC later in 2015. | ||
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 has the ability to exercise significant influence but in which the Company does not possess control are generally accounted for by the equity method. Entities in which the Company does not have the ability to exercise significant influence are generally carried at cost. However, investments in marketable equity securities where the Company does not have the ability to exercise significant influence over the entities are accounted for as available-for-sale securities. The Company also evaluates its initial and continuing involvement with certain entities to determine if the Company is required to consolidate the entities under the variable interest entity ("VIE") model. This evaluation is based on a qualitative assessment of whether the Company is the primary beneficiary of the VIE, which requires the Company to possess both: 1) the power to direct activities that most significantly impact the economic performance of the VIE; and 2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. | |
The Company's consolidated financial statements are prepared in accordance with GAAP. Intercompany accounts and transactions are eliminated in consolidation. 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. | ||
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, is related to prior recapitalization transactions and 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 (loss). | ||
Related Parties | Related Parties—Joseph M. Velli, Chairman and CEO of ConvergEx Group, served on the Board of Directors from January 2010 to October 1, 2014. During this period, the Company used ConvergEx Group for clearing and transfer agent services. Payments for these services represented less than 1% of the Company’s total operating expenses for each of the years ended December 31, 2014, 2013 and 2012. | |
Use of Estimates | Use of Estimates—Preparing the Company's consolidated financial statements in accordance with GAAP 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. | |
Cash and equivalents (policy) | Cash and Equivalents—The Company considers all highly liquid investments with original or remaining maturities of three months or less at the time of purchase that are not required to be segregated under federal or other regulations to be cash and equivalents. Cash and equivalents included $0.9 billion and $1.0 billion at December 31, 2014 and 2013, respectively, of overnight cash deposits, a portion of which the Company is required to maintain with the Federal Reserve Bank. | |
Cash required to be segregated under federal or other regulations (policy) | Cash Required to be Segregated Under Federal or Other Regulations—Certain cash balances that are required to be segregated for the exclusive benefit of the Company’s brokerage customers are included in the cash required to be segregated under federal or other regulations line item. | |
Available-for-sale securities (policy) | Available-for-Sale Securities—Available-for-sale securities consist primarily of debt securities and also include equity securities. Securities classified as available-for-sale are carried at fair value, with the unrealized gains and losses, after any applicable hedge accounting adjustments, reflected as a component of accumulated other comprehensive loss, net of tax. Realized and unrealized gains or losses on available-for-sale debt and equity securities are computed using the specific identification method. Interest earned on available-for-sale debt and equity securities is included in operating interest income. Amortization or accretion of premiums and discounts on available-for-sale debt securities are also recognized in operating interest income using the effective interest method over the contractual life of the security. Realized gains and losses on available-for-sale debt and equity securities, other than OTTI, are included in the gains on loans and securities, net line item. Available-for-sale securities that have an unrealized loss (impaired securities) are evaluated for OTTI at each balance sheet date. | |
Held-to-maturity securities (policy) | Held-to-Maturity Securities—Held-to-maturity securities consist of debt securities, primarily residential mortgage-backed securities and agency debt securities. Held-to-maturity securities are carried at amortized cost based on the Company’s intent and ability to hold these securities to maturity. Interest earned on held-to-maturity debt securities is included in operating interest income. Amortization or accretion of premiums and discounts are also recognized in operating interest income using the effective interest method over the contractual life of the security. Held-to-maturity securities that have an unrecognized loss (impaired securities) are evaluated for OTTI at each balance sheet date in a manner consistent with available-for-sale debt securities. | |
Margin receivables (policy) | Margin Receivables—Margin receivables represent credit extended to customers to finance their purchases of securities by borrowing against securities the customers own. Securities owned by customers are held as collateral for amounts due on the margin receivables, the value of which is not reflected in the consolidated balance sheet. The Company is permitted to sell or re-pledge these securities held as collateral and use the securities to enter into securities lending transactions, to collateralize borrowings or for delivery to counterparties to cover customer short positions. 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 $10.8 billion and $9.1 billion at December 31, 2014 and 2013, respectively. Of this amount, $2.9 billion and $1.9 billion had been pledged or sold in connection with securities loans, bank borrowings and deposits with clearing organizations at December 31, 2014 and 2013, respectively. | |
Loans receivable, net (policy) and Impaired loans (policy) | Loans Receivable, Net—Loans receivable, net consists of real estate and consumer loans that management has the intent and ability to hold for the foreseeable future or until maturity, also known as loans held-for-investment. Loans held-for-investment are carried at amortized cost adjusted for unamortized premiums or discounts on purchased loans, deferred fees or costs on originated loans, net charge-offs, and the allowance for loan losses. Premiums or discounts on purchased loans and deferred fees or costs on originated loans are recognized in operating interest income using the effective interest method over the contractual life of the loans and are adjusted for actual prepayments. The Company’s classes of loans are one- to four-family, home equity and consumer and other loans. | |
Impaired Loans—The Company considers a loan to be impaired when it meets the definition of a TDR. Impaired loans exclude smaller-balance homogeneous one- to four-family, home equity and consumer and other loans that have not been modified as TDRs and are collectively evaluated for impairment. | ||
TDRs (policy) | TDRs—Loan modifications completed under the Company’s loss mitigation programs in which economic concessions were granted to borrowers experiencing financial difficulty are considered TDRs. TDRs also include loans that have been charged-off based on the estimated current value of the underlying property less estimated selling costs due to bankruptcy notification even if the loan has not been modified under the Company’s programs. 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. The Company also processes minor modifications on a number of loans through traditional collections actions taken in the normal course of servicing delinquent accounts. Minor modifications resulting in an insignificant delay in the timing of payments are not considered economic concessions and therefore are not classified as TDRs. | |
Impairment on loan modifications is measured on an individual loan level basis, generally using a discounted cash flow model. When certain characteristics of the modified loan cast substantial doubt on the borrower’s ability to repay the loan, the Company identifies the loan as collateral dependent and charges-off the amount of the modified loan balance in excess of the estimated current value of the underlying property less estimated selling costs. Collateral dependent TDRs are identified based on the terms of the modification, which includes assigning a higher level of risk to loans in which the LTV or CLTV is greater than 110% or 125%, respectively, a borrower’s credit score is less than 600 and certain types of modifications, such as interest-only payments. TDRs that are not identified as higher risk using this risk assessment process and for which impairment is measured using a discounted cash flow model, continue to be evaluated in the event that they become higher risk collateral dependent TDRs. | ||
TDRs, excluding loans in bankruptcy, are classified as nonperforming loans at the time of modification. Such TDRs return to accrual status after six consecutive payments are made in accordance with the modified terms. Accruing TDRs that subsequently become delinquent will immediately return to nonaccrual status. Bankruptcy loans are classified as nonperforming loans within 60 days of bankruptcy notification and remain on nonaccrual status regardless of the payment history. | ||
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 (including loans in bankruptcy) 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, loans in bankruptcy 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. Certain junior liens that have a delinquent senior lien remain on nonaccrual status until certain performance criteria are met. | |
Allowance for loan losses (policy) | Allowance for Loan Losses—The allowance for loan losses is management’s estimate of probable losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan losses is typically equal to management’s forecast of loan losses in the twelve months following the balance sheet date as well as the forecasted losses, including economic concessions to borrowers, over the estimated remaining life of loans modified as TDRs. | |
The Company’s segments are one- to four-family, home equity and consumer and other. The estimate of the allowance for loan losses is based on a variety of quantitative and qualitative factors, including: | ||
• | the composition and quality of the portfolio; | |
•delinquency levels and trends; | ||
•current and historical charge-off and loss experience; | ||
•the Company’s historical loss mitigation experience; | ||
•the condition of the real estate market and geographic concentrations within the loan portfolio; | ||
•the interest rate climate; | ||
•the overall availability of housing credit; and | ||
•general economic conditions. | ||
For loans that are not TDRs, the Company established a general allowance. The one- to four-family and home equity loan portfolios represented 48% and 45%, respectively, of total loans receivable as of December 31, 2014. The one- to four-family and home equity loan portfolios are separated into risk segments based on key risk factors, which include but are not limited to loan type, delinquency history, documentation type, LTV/CLTV ratio and borrowers’ credit scores. For home equity loans in the second lien position, the original balance of the first lien loan at origination date and updated valuations on the property underlying the loan are used to calculate CLTV. Both current CLTV and FICO scores are among the factors utilized to categorize the risk associated with mortgage loans and assign a probability assumption of future default. The Company utilizes historical mortgage loan performance data to develop the forecast of delinquency and default for these risk segments. | ||
The general allowance for loan losses also includes a qualitative component to account for a variety of factors that present additional uncertainty that may not be fully considered in the quantitative loss model but are factors the Company believes may impact the level of credit losses. The Company utilizes a qualitative factor framework whereby, on a quarterly basis, management assesses the risk associated with three main factors. These factors are: external factors, such as changes in the macroeconomic, legal and regulatory environment; internal factors, such as procedural changes and reliance on third parties; and portfolio specific factors, such as the impact on borrowers' monthly payments from one- to four-family loans converting from interest only to amortizing. The uncertainty related to these factors may expand over time, temporarily increasing the qualitative component in advance of the more precise identification of these probable losses being captured within the general allowance. The total qualitative component was $37 million and $62 million as of December 31, 2014 and 2013, respectively. | ||
During the year ended December 31, 2014, we enhanced our quantitative allowance methodology to identify higher risk home equity lines of credit and extend the period of management’s forecasted loan losses captured within the general allowance to include the total probable loss on a subset of these higher risk loans. These enhancements drove the migration of estimated losses previously captured on these loans from the qualitative component to the quantitative component of the general allowance, and drove the majority of the provision for loan losses within the home equity portfolio during the year ended December 31, 2014. During the year ended December 31, 2013, the Company increased its default assumptions related to balloon loans and extended the period of management's forecasted loan losses captured within the general allowance to include the total probable loss on higher risk balloon loans. The overall impact of these refinements drove the substantial majority of provision for loan losses during the year ended December 31, 2013. | ||
The consumer and other loan portfolio is separated into risk segments by product and delinquency status. The Company utilizes historical performance data and historical recovery rates on collateral liquidation to forecast delinquency and loss at the product level. The consumer and other loan portfolio represented 7% of total loans receivable as of December 31, 2014. The qualitative component for the consumer and other loan portfolio was $1 million and $4 million as of December 31, 2014 and 2013, respectively. | ||
For modified loans accounted for as TDRs that are valued using the discounted cash flow model, the Company established a specific allowance. The specific allowance for TDRs factors in the historical default rate of an individual loan before being modified as a TDR in the discounted cash flow analysis in order to determine that specific loan’s expected impairment. Specifically, a loan that has a more severe delinquency history prior to modification will have a higher future default rate in the discounted cash flow analysis than a loan that was not as severely delinquent. For both of the one- to four-family and home equity loan portfolio segments, the pre-modification delinquency status, the borrower’s current credit score and other credit bureau attributes, in addition to each loan’s individual default experience and credit characteristics, are incorporated into the calculation of the specific allowance. A specific allowance is established to the extent that the recorded investment exceeds the discounted cash flows of a TDR with a corresponding charge to provision for loan losses. 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. | ||
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. | ||
Investment in FHLB stock (policy) | Investment in FHLB stock—The Company is a member of, and owns capital stock in, the FHLB system. The FHLB provides the Company with reserve credit capacity and authorizes advances based on the security of pledged home mortgages and other assets (principally securities that are obligations of, or guaranteed by, the U.S. Government) provided the Company meets certain creditworthiness standards. FHLB advances, included in the FHLB advances and other borrowings line item, is a wholesale funding source of E*TRADE Bank. As a condition of its membership in the FHLB, the Company is required to maintain a FHLB stock investment. The Company accounts for its investment in FHLB stock as a cost method investment. | |
Property and equipment, net (policy) | Property and Equipment, Net—Property and equipment are carried at cost and depreciated on a straight-line basis over their estimated useful lives, generally three to seven years. Leasehold improvements are depreciated over the lesser of their estimated useful lives or lease terms. Buildings are depreciated over the lesser of their estimated useful lives or thirty-five years. Land is carried at cost. An impairment loss is recognized if the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. | |
On October 31, 2014, the Company executed a sale-leaseback transaction on its office located in Alpharetta, Georgia. The Company recorded the net sales proceeds of approximately $56 million as a financing obligation and the related assets continue to be included in the property and equipment, net line item on the consolidated balance sheet. For additional information on the sale-leaseback, see Note 9—Property and Equipment, Net. | ||
The costs of internally developed software that qualify for capitalization are included in the property and equipment, net line item. For qualifying internal-use software costs, capitalization begins when the conceptual formulation, design and testing of possible software project alternatives are complete and management authorizes and commits to funding the project. The Company does not capitalize pilot projects and projects where it believes that future economic benefits are less than probable. Technology development costs incurred in the development and enhancement of software used in connection with services provided by the Company that do not otherwise qualify for capitalization treatment are expensed as incurred. Completed projects are carried at cost and are amortized on a straight-line basis over their estimated useful lives of four years. | ||
Goodwill and other intangibles, net (policy) | Goodwill and Other Intangibles, Net—Goodwill is acquired through business combinations and represents the excess of the purchase price over the fair value of net tangible assets and identifiable intangible assets. The Company evaluates goodwill for impairment on an annual basis as of November 30 and in interim periods when events or changes indicate the carrying value may not be recoverable. The Company has the option of performing a qualitative assessment of goodwill for any of its reporting units to determine whether it is more likely than not that the fair value is less than the carrying value of a reporting unit. If it is more likely than not that the fair value exceeds the carrying value of the reporting unit, then no further testing is necessary; otherwise, the Company must perform a two-step quantitative assessment of goodwill. The Company may elect to bypass the qualitative assessment and proceed directly to performing a two-step quantitative assessment. | |
Other intangibles, net represents the excess of the purchase price over the fair value of net tangible assets acquired through the Company’s business combinations. The Company currently does not have any intangible assets with indefinite lives. The Company evaluates other intangible assets with finite lives for impairment on an annual basis or when events or changes indicate the carrying value may not be recoverable. The Company also evaluates the remaining useful lives of intangible assets with finite lives each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. | ||
For additional information on goodwill and other intangibles, net, see Note 10—Goodwill and Other Intangibles, Net. | ||
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 repossessed assets are carried at the lower of carrying value or fair value, less estimated selling costs. | |
Equity and cost method investments (policy) | Equity and Cost Method Investments—The Company’s equity and cost method investments are generally limited liability investments in partnerships, companies and other similar entities, including tax credit partnerships and community development entities, that are not required to be consolidated. Equity and cost method investments are reported in the other assets line item in the consolidated balance sheet. Under the equity method, the Company recognizes its share of the investee’s net income or loss in the equity in income (loss) of investments and other line item in the consolidated statement of income (loss). Additionally, the Company recognizes a liability for all legally binding unfunded equity commitments to the investees in the other liabilities line item in the consolidated balance sheet. | |
The Company evaluates its equity and cost method investments for impairment when events or changes indicate the carrying value may not be recoverable. If the impairment is determined to be other-than-temporary, the Company will recognize an impairment loss in the equity in income (loss) of investments and other line item equal to the difference between the expected realizable value and the carrying value of the investment. | ||
Income taxes (policy) | Income Taxes—Deferred income taxes are recorded when revenues and expenses are recognized in different periods for financial statement purposes than for tax purposes. Deferred tax asset or liability account balances are calculated at the balance sheet date using current tax laws and rates in effect. Valuation allowances for deferred tax assets are established if it is determined, based on evaluation of available evidence at the time the determination is made, that it is more likely than not that some or all of the deferred tax assets will not be realized. Income tax expense (benefit) includes (i) deferred tax expense (benefit), which generally represents the net change in the deferred tax asset or liability balance during the year plus any change in valuation allowances, and (ii) current tax expense (benefit), which represents the amount of tax currently payable to or receivable from a taxing authority. Uncertain tax positions are only recognized to the extent it is more likely than not that the uncertain tax position will be sustained upon examination. For uncertain tax positions, tax benefit is recognized for cases in which it is more than fifty percent likely of being sustained on ultimate settlement. For additional information on income taxes, see Note 16—Income Taxes. | |
Securities sold under agreements to repurchase (policy) | Securities Sold Under Agreements to Repurchase—Securities sold under agreements to repurchase the same or similar securities, also known as repurchase agreements, are collateralized by fixed- and variable-rate mortgage-backed securities or investment grade securities. Repurchase agreements are treated as secured borrowings for financial statement purposes and the obligations to repurchase securities sold are therefore reflected as liabilities in the consolidated balance sheet. | |
Customer payables (policy) | Customer Payables—Customer payables represent credit balances in customer accounts arising from deposits of funds and sales of securities and other funds pending completion of securities transactions. Customer payables primarily represent customer cash contained within the Company’s broker-dealer subsidiaries. The Company pays interest on certain customer payables balances. | |
Comprehensive income (loss) (policy) | Comprehensive Income (Loss)—The Company’s comprehensive income (loss) is composed of net income (loss), noncredit portion of OTTI on debt securities, unrealized gains (losses) on available-for-sale securities, the effective portion of the unrealized gains (losses) on derivatives in cash flow hedge relationships and foreign currency translation gains, net of reclassification adjustments and related tax. | |
Derivative instruments and hedging activities (policy) | 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. Each derivative instrument is recorded on the consolidated balance sheet at fair value as a freestanding asset or liability. For financial statement purposes, the Company’s policy is to not offset fair value amounts recognized for derivative instruments and fair value amounts related to collateral arrangements under master netting arrangements. | |
Accounting for derivatives differs significantly depending on whether a derivative is designated as a hedge based on the applicable accounting guidance and, if designated as a hedge, the type of hedge designation. Derivative instruments designated in hedging relationships that mitigate the exposure to the variability in expected future cash flows or other forecasted transactions are considered cash flow hedges. Derivative instruments in hedging relationships that mitigate exposure to changes in the fair value of assets or liabilities are considered fair value hedges. In order to qualify for hedge accounting, the Company formally documents at inception all relationships between hedging instruments and hedged items and the risk management objective and strategy for each hedge transaction. Cash flow and fair value hedge ineffectiveness is measured on a quarterly basis and is included in the gains on loans and securities, net line item in the consolidated statement of income (loss). Cash flows from derivative instruments in hedging relationships are classified in the same category on the consolidated statement of cash flows as the cash flows from the items being hedged. The Company also recognizes certain contracts and commitments as derivatives when the characteristics of those contracts and commitments meet the definition of a derivative. Gains and losses on derivatives that are not held as accounting hedges are recognized in the gains on loans and securities, net line item in the consolidated statement of income (loss). For additional information on derivative instruments and hedging activities, see Note 8—Accounting for Derivative Instruments and Hedging Activities. | ||
Fair value (policy) | Fair Value—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. The Company determines the fair value for its financial instruments and for nonfinancial assets and nonfinancial liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. In addition, the Company determines the fair value for nonfinancial assets and nonfinancial liabilities on a nonrecurring basis as required during impairment testing or by other accounting guidance. For additional information on fair value, see Note 4—Fair Value Disclosures. | |
Operating interest income (policy) | Operating Interest Income—Operating interest income is recognized as earned through holding interest-earning assets, such as loans, available-for-sale securities, held-to-maturity securities, margin receivables, cash and equivalents, segregated cash, and securities lending activities. Operating interest income also includes the impact of the Company’s derivative transactions related to interest-earning assets. | |
Operating interest expense (policy) | Operating Interest Expense—Operating interest expense is recognized as incurred through holding interest-bearing liabilities, such as deposits, customer payables, securities sold under agreements to repurchase, FHLB advances and other borrowings, and securities lending activities and other balances. Operating interest expense also includes the impact of the Company’s derivative transactions related to interest-bearing liabilities. | |
Commissions (policy) | Commissions—Commissions are derived from the Company’s customers and are impacted by both trade types and trade mix. Commissions from securities transactions are recognized on a trade-date basis. | |
Fees and service charges (policy) | Fees and Service Charges—Fees and service charges consist of order flow revenue, mutual fund service fees, advisor management fees, foreign exchange revenue, reorganization fees and other fees and service charges. Order flow revenue is accrued in the same period in which the related securities transactions are completed or related services are rendered. | |
Principal transactions (policy) | Principal Transactions—Principal transactions consisted of revenue from market making activities. The Company completed the sale of its market making business on February 10, 2014 and therefore no longer records revenue from principal transactions. For additional information on the market making business, see Note 2—Disposition. | |
Gains on loans and securities, net (policy) | Gains on Loans and Securities, Net—Gains on loans and securities, net includes gains or losses resulting from the sale of available-for-sale securities; gains or losses resulting from sales of loans; hedge ineffectiveness; and gains or losses on derivative instruments that are not accounted for as hedging instruments. Gains or losses resulting from the sale of available-for-sale securities are recognized at the trade-date, based on the difference between the anticipated proceeds and the amortized cost of the specific securities sold. | |
Other-than-temporary impairment (OTTI) (policy) | OTTI—The Company considers OTTI for an available-for-sale or held-to-maturity debt security to have occurred if one of the following conditions are met: the Company intends to sell the impaired debt security; it is more likely than not that the Company will be required to sell the impaired debt security before recovery of the security’s amortized cost basis; or the Company does not expect to recover the entire amortized cost basis of the security. The Company’s evaluation of whether it intends to sell an impaired debt security considers whether management has decided to sell the security as of the balance sheet date. The Company’s evaluation of whether it is more likely than not that the Company will be required to sell an impaired debt security before recovery of the security’s amortized cost basis considers the likelihood of sales that involve legal, regulatory or operational requirements. For impaired debt securities that the Company does not intend to sell and it is not more likely than not that the Company will be required to sell before recovery of the security’s amortized cost basis, the Company uses both qualitative and quantitative valuation measures to evaluate whether the Company expects to recover the entire amortized cost basis of the security. The Company considers all available information relevant to the collectability of the security, including credit enhancements, security structure, vintage, credit ratings and other relevant collateral characteristics. | |
If the Company intends to sell an impaired debt security or if it is more likely than not that the Company will be required to sell the impaired debt security before recovery of the security’s amortized cost basis, the Company will recognize OTTI in earnings equal to the entire difference between the security’s amortized cost basis and the security’s fair value. If the Company does not intend to sell the impaired debt security and it is not more likely than not that the Company will be required to sell the impaired debt security before recovery of its amortized cost basis but the Company does not expect to recover the entire amortized cost basis of the security, the Company will separate OTTI into two components: 1) the amount related to credit loss, recognized in earnings; and 2) the noncredit portion of OTTI, recognized through other comprehensive income (loss). | ||
The Company considers OTTI for an available-for-sale equity security to have occurred if the decline in the security’s fair value below its cost basis is deemed other than temporary based on evaluation of both qualitative and quantitative valuation measures. If the impairment of an available-for-sale equity security is determined to be other-than-temporary, the Company will recognize OTTI in earnings equal to the entire difference between the security’s amortized cost basis and the security’s fair value. If the Company intends to sell an impaired equity security and the Company does not expect to recover the entire cost basis of the security prior to the sale, the Company will recognize OTTI in the period the decision to sell is made. | ||
Net impairment (policy) | Net Impairment—Net impairment includes OTTI net of the noncredit portion of OTTI on debt securities recognized through other comprehensive income (loss) before tax. | |
Other revenues (policy) | Other Revenues—Other revenues primarily consist of fees from software and services for managing equity compensation plans, which are recognized in accordance with applicable accounting guidance, including software revenue recognition accounting guidance. Other revenues also include revenue ancillary to the Company’s customer transactions and income from the cash surrender value of BOLI. | |
Share-based payments (policy) | Share-Based Payments—In 2005, the Company adopted and the stockholders approved the 2005 Stock Incentive Plan ("2005 Plan") to replace the 1996 Stock Incentive Plan ("1996 Plan") which provides for the grant of nonqualified or incentive stock options, restricted stock awards and restricted stock units to officers, directors, employees and consultants for the purchase of newly issued shares of the Company’s common stock at a price determined by the Board at the date of the grant. The Company does not have a specific policy for issuing shares upon stock option exercises and share unit conversions; however, new shares are typically issued in connection with exercises and conversions. The Company intends to continue to issue new shares for future exercises and conversions. | |
Through 2011, the Company issued options to the Company's Board of Directors and to certain of the Company's officers and employees. Options are generally exercisable ratably over a two- to four-year period from the date the option is granted and expire within seven to ten years from the date of grant. Certain options provide for accelerated vesting upon a change in control. Exercise prices were generally equal to the fair value of the shares on the grant date. As of December 31, 2014, there were 0.7 million shares outstanding and less than $1 million of total unrecognized compensation expense related to non-vested stock options. This cost is expected to be recognized over a weighted-average period of 0.1 year. | ||
The Company issues restricted stock awards to the Company's Board of Directors and restricted stock units to certain of the Company's officers and employees. Each restricted stock unit can be converted into one share of the Company’s common stock upon vesting. These restricted stock awards and units are issued at the fair value on the date of grant and vest ratably over the requisite service period, generally one year for restricted stock awards and three to four years for restricted stock units. As of December 31, 2014, there were 3.3 million awards and units outstanding and $31 million of total unrecognized compensation expense related to non-vested awards. This cost is expected to be recognized over a weighted-average period of 1.6 years. The total fair value of restricted stock awards and restricted stock units vested was $34 million, $19 million and $10 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
The Company recognized $24 million, $20 million and $21 million in compensation expense for its options, restricted stock awards and restricted stock units for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Under the 2005 Plan, the remaining unissued authorized shares of the 1996 Plan, up to 4.2 million shares, were authorized for issuance. Additionally, any shares that had been awarded but remained unissued under the 1996 Plan that were subsequently canceled, would be authorized for issuance under the 2005 Plan, up to 3.9 million shares. In May 2009 and 2010, an additional 3.0 million and 12.5 million shares, respectively, were authorized for issuance under the 2005 Plan at the Company’s annual meetings of stockholders in each of those respective years. As of December 31, 2014, 7.2 million shares were available for grant under the 2005 Plan. | ||
The Company records share-based compensation expense in accordance with the stock compensation accounting guidance. The Company recognizes compensation expense at the grant date fair value of a share-based payment award over the requisite service period less estimated forfeitures. Share-based compensation expense is included in the compensation and benefits line item. | ||
Advertising and market development (policy) | Advertising and Market Development—Advertising production costs are expensed when the initial advertisement is run. | |
Earnings (loss) per share (policy) | Earnings (Loss) Per Share—Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The Company excludes from the calculation of diluted net income (loss) per share stock options, unvested restricted stock awards and units and shares related to convertible debentures that would have been anti-dilutive. | |
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 initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received and the net investment performance is recognized in the consolidated statement of income (loss) as a component of income tax expense (benefit). The adoption of the amended accounting guidance on a retrospective basis on January 1, 2015 will not 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 on a modified retrospective basis 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 became effective for all disposals or classifications as held for sale occurring in annual and interim periods beginning on January 1, 2015 for the Company. The adoption of the amended guidance did not 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. | ||
Revenue Recognition on Contracts with Customers | ||
In May 2014, the FASB amended the guidance on revenue recognition on contracts with customers. The new standard outlines a single comprehensive model for entities to apply in accounting for revenue arising from contracts with customers. The amended guidance will be effective for annual and interim periods beginning on January 1, 2017 for the Company and may be applied on either a full retrospective or modified retrospective basis. Early adoption is not permitted. While the Company is currently evaluating the impact of the new accounting guidance, the adoption of the amended guidance is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. | ||
Accounting and Disclosures for Repurchase Agreements | ||
In June 2014, the FASB amended the accounting and disclosure guidance on repurchase agreements. The amended guidance requires entities to account for repurchase-to-maturity transactions as secured borrowings, eliminates accounting guidance on linked repurchase financing transactions, and expands the disclosure requirements related to transfers of financial assets accounted for as sales and as secured borrowings. The amended accounting guidance and the amended disclosure guidance for transfers of financial assets accounted for as sales became effective for annual and interim periods beginning on January 1, 2015 for the Company and will be applied using a cumulative-effect approach as of that date. The amended disclosure guidance for transfers of financial assets accounted for as secured borrowings will be effective for annual periods beginning on January 1, 2015 and interim periods beginning on April 1, 2015 for the Company. The adoption of the amended guidance will not have a material impact on the Company’s financial condition, results of operations or cash flows. The Company's disclosures will reflect the adoption of the amended disclosure guidance in the applicable reporting periods in 2015. | ||
Classification of Government-Guaranteed Mortgage Loans upon Foreclosure | ||
In August 2014, the FASB amended the accounting and disclosure guidance related to the classification of certain government-guaranteed mortgage loans upon foreclosure. The amended guidance requires entities to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if certain conditions are met. The separate other receivable is recorded based on the amount of principal and interest expected to be recovered under the guarantee. The amended guidance became effective for annual and interim periods beginning on January 1, 2015 for the Company and will be applied on a modified retrospective basis. The adoption of the amended guidance will not have a material impact on the Company’s financial condition, results of operations or cash flows. | ||
Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern | ||
In August 2014, the FASB amended the guidance related to an entity’s evaluations and disclosures of going concern uncertainties. The new guidance requires management to perform interim and annual assessments of the entity’s ability to continue as a going concern within one year of the date the financial statements are issued, and to provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The amended guidance will be effective for the Company for annual periods beginning on January 1, 2016 and for interim periods beginning on January 1, 2017. Early adoption is permitted. The adoption of the amended guidance will not impact the Company’s financial condition, results of operations or cash flows. | ||
Consolidation | ||
In February 2015, the FASB amended the guidance on consolidation of certain legal entities. The amended guidance modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, and revises the consolidation analysis related to fee arrangements and related party relationships. The amended guidance will be effective for annual and interim periods beginning on January 1, 2016 for the Company and may be applied on either a full retrospective or modified retrospective basis. While the Company is currently evaluating the impact of the new accounting guidance, the adoption of the amended guidance is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. |
Disposition_Tables
Disposition (Tables) | 12 Months Ended | ||||
Dec. 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 at 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) | 12 Months Ended | |||||||||||
Dec. 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): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Operating interest income: | ||||||||||||
Loans | $ | 297 | $ | 395 | $ | 496 | ||||||
Available-for-sale securities | 288 | 279 | 360 | |||||||||
Held-to-maturity securities | 328 | 255 | 237 | |||||||||
Margin receivables | 264 | 224 | 216 | |||||||||
Securities borrowed and other | 116 | 67 | 62 | |||||||||
Total operating interest income(1) | 1,293 | 1,220 | 1,371 | |||||||||
Operating interest expense: | ||||||||||||
Securities sold under agreements to repurchase | (123 | ) | (148 | ) | (158 | ) | ||||||
FHLB advances and other borrowings | (65 | ) | (68 | ) | (93 | ) | ||||||
Deposits | (8 | ) | (13 | ) | (24 | ) | ||||||
Customer payables and other | (9 | ) | (9 | ) | (11 | ) | ||||||
Total operating interest expense(2) | (205 | ) | (238 | ) | (286 | ) | ||||||
Net operating interest income | $ | 1,088 | $ | 982 | $ | 1,085 | ||||||
-1 | Operating interest income reflects $(31) million, $(16) million, and $(10) million of expense on hedges that qualify for hedge accounting for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||
-2 | Operating interest expense reflects $132 million, $153 million, and $142 million of expense on hedges that qualify for hedge accounting for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair Value Inputs, Assets, Quantitative Information | 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 December 31, 2014: | |||||||||||||||||||
Unobservable Inputs | Average | Range | ||||||||||||||||||
Loans receivable: | ||||||||||||||||||||
One- to four-family | Appraised value | $ | 378,700 | $37,000-$1,800,000 | ||||||||||||||||
Home equity | Appraised value | $ | 280,400 | $9,000-$1,190,000 | ||||||||||||||||
Real estate owned | Appraised value | $ | 342,800 | $5,000-$1,950,000 | ||||||||||||||||
The weighted average coupon rates for the available-for-sale residential mortgage-backed securities at December 31, 2014 are shown in the following table: | ||||||||||||||||||||
Weighted Average | ||||||||||||||||||||
Coupon Rate | ||||||||||||||||||||
Agency mortgage-backed securities | 3.1 | % | ||||||||||||||||||
Agency CMOs | 3.08 | % | ||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | Assets and liabilities measured at fair value at December 31, 2014 and 2013 are summarized in the following tables (dollars in millions): | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Fair Value | ||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | — | $ | 11,164 | $ | — | $ | 11,164 | ||||||||||||
Agency debentures | — | 648 | — | 648 | ||||||||||||||||
Agency debt securities | — | 499 | — | 499 | ||||||||||||||||
Municipal bonds | — | 40 | — | 40 | ||||||||||||||||
Corporate bonds | — | 4 | — | 4 | ||||||||||||||||
Total debt securities | — | 12,355 | — | 12,355 | ||||||||||||||||
Publicly traded equity securities | 33 | — | — | 33 | ||||||||||||||||
Total available-for-sale securities | 33 | 12,355 | — | 12,388 | ||||||||||||||||
Other assets: | ||||||||||||||||||||
Derivative assets(1) | — | 24 | — | 24 | ||||||||||||||||
Total assets measured at fair value on a recurring basis(2) | $ | 33 | $ | 12,379 | $ | — | $ | 12,412 | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivative liabilities(1) | $ | — | $ | 66 | $ | — | $ | 66 | ||||||||||||
Total liabilities measured at fair value on a recurring basis(2) | $ | — | $ | 66 | $ | — | $ | 66 | ||||||||||||
Nonrecurring fair value measurements: | ||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||
One- to four-family | $ | — | $ | — | $ | 46 | $ | 46 | ||||||||||||
Home equity | — | — | 32 | 32 | ||||||||||||||||
Total loans receivable | — | — | 78 | 78 | ||||||||||||||||
Real estate owned | — | — | 38 | 38 | ||||||||||||||||
Total assets measured at fair value on a nonrecurring basis(3) | $ | — | $ | — | $ | 116 | $ | 116 | ||||||||||||
-1 | All derivative assets and liabilities were interest rate contracts at December 31, 2014. Information related to derivative instruments is detailed in Note 8—Accounting for Derivative Instruments and Hedging Activities. | |||||||||||||||||||
-2 | Assets and liabilities measured at fair value on a recurring basis represented 27% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2014. | |||||||||||||||||||
-3 | Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 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: | ||||||||||||||||||||
Debt 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 | ||||||||||||||||
Agency debentures | — | 466 | — | 466 | ||||||||||||||||
Agency debt securities | — | 831 | — | 831 | ||||||||||||||||
Municipal bonds | — | 40 | — | 40 | ||||||||||||||||
Corporate bonds | — | 5 | — | 5 | ||||||||||||||||
Total debt securities | — | 13,578 | 14 | 13,592 | ||||||||||||||||
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 years ended December 31, 2014, 2013 and 2012 (dollars in millions): | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
One- to four-family | $ | 10 | $ | 40 | $ | 193 | ||||||||||||||
Home equity | 30 | 58 | 292 | |||||||||||||||||
Total losses on loans receivable measured at fair value | $ | 40 | $ | 98 | $ | 485 | ||||||||||||||
(Gains) losses on real estate owned measured at fair value | $ | (2 | ) | $ | (1 | ) | $ | 12 | ||||||||||||
Losses on goodwill measured at fair value | $ | — | $ | 142 | $ | — | ||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present additional information about Level 3 assets measured at fair value on a recurring basis for the years ended December 31, 2014, 2013 and 2012 (dollars in millions): | |||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||||
Non-agency CMOs | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Beginning of period | $ | 14 | $ | 49 | $ | 97 | ||||||||||||||
Gains (losses) recognized in earnings(1) | 6 | (3 | ) | (13 | ) | |||||||||||||||
Net gains recognized in other comprehensive income(2) | 3 | 5 | 18 | |||||||||||||||||
Sales | (23 | ) | (35 | ) | (68 | ) | ||||||||||||||
Settlements | — | (2 | ) | (23 | ) | |||||||||||||||
Transfers in to Level 3(3)(4) | — | — | 211 | |||||||||||||||||
Transfers out of Level 3(3)(5) | — | — | (173 | ) | ||||||||||||||||
End of period | $ | — | $ | 14 | $ | 49 | ||||||||||||||
-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 (loss). | |||||||||||||||||||
-2 | Net gains recognized in other comprehensive income (loss) are reported in the net change from available-for-sale securities line item. | |||||||||||||||||||
-3 | The Company's transfers in and out of Level 3 are at the beginning of the reporting period on a quarterly basis. | |||||||||||||||||||
-4 | Non-agency CMOs were transferred in to Level 3 due to a lack of observable market data, resulting from a decrease in market activity for the securities. | |||||||||||||||||||
-5 | Non-agency CMOs were transferred out of Level 3 because observable market data became available for those securities. | |||||||||||||||||||
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 December 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Value | Fair Value | |||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and equivalents | $ | 1,783 | $ | 1,783 | $ | — | $ | — | $ | 1,783 | ||||||||||
Cash required to be segregated under federal or other regulations | $ | 555 | $ | 555 | $ | — | $ | — | $ | 555 | ||||||||||
Held-to-maturity securities: | ||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 9,793 | $ | — | $ | 9,971 | $ | — | $ | 9,971 | ||||||||||
Agency debentures | 164 | — | 166 | — | 166 | |||||||||||||||
Agency debt securities | 2,281 | — | 2,329 | — | 2,329 | |||||||||||||||
Other non-agency debt securities | 10 | — | — | 10 | 10 | |||||||||||||||
Total held-to-maturity securities | $ | 12,248 | $ | — | $ | 12,466 | $ | 10 | $ | 12,476 | ||||||||||
Margin receivables | $ | 7,675 | $ | — | $ | 7,675 | $ | — | $ | 7,675 | ||||||||||
Loans receivable, net: | ||||||||||||||||||||
One- to four-family | $ | 3,053 | $ | — | $ | — | $ | 2,742 | $ | 2,742 | ||||||||||
Home equity | 2,475 | — | — | 2,274 | 2,274 | |||||||||||||||
Consumer and other | 451 | — | — | 449 | 449 | |||||||||||||||
Total loans receivable, net(1) | $ | 5,979 | $ | — | $ | — | $ | 5,465 | $ | 5,465 | ||||||||||
Investment in FHLB stock | $ | 88 | $ | — | $ | — | $ | 88 | $ | 88 | ||||||||||
Deposits paid for securities borrowed | $ | 474 | $ | — | $ | 474 | $ | — | $ | 474 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits | $ | 24,890 | $ | — | $ | 24,890 | $ | — | $ | 24,890 | ||||||||||
Securities sold under agreements to repurchase | $ | 3,672 | $ | — | $ | 3,681 | $ | — | $ | 3,681 | ||||||||||
Customer payables | $ | 6,455 | $ | — | $ | 6,455 | $ | — | $ | 6,455 | ||||||||||
FHLB advances and other borrowings | $ | 1,299 | $ | — | $ | 922 | $ | 252 | $ | 1,174 | ||||||||||
Corporate debt | $ | 1,366 | $ | — | $ | 1,491 | $ | — | $ | 1,491 | ||||||||||
Deposits received for securities loaned | $ | 1,649 | $ | — | $ | 1,649 | $ | — | $ | 1,649 | ||||||||||
-1 | The carrying value of loans receivable, net includes the allowance for loan losses of $404 million and loans that are valued at fair value on a nonrecurring basis at December 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) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 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 December 31, 2014 and 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 | ||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Deposits paid for securities borrowed (1)(5) | $ | 474 | $ | — | $ | 474 | $ | (188 | ) | $ | (267 | ) | $ | 19 | |||||||||||||
Derivative assets (1)(3) | 24 | — | 24 | (15 | ) | (3 | ) | 6 | |||||||||||||||||||
Total | $ | 498 | $ | — | $ | 498 | $ | (203 | ) | $ | (270 | ) | $ | 25 | |||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Repurchase agreements (4) | $ | 3,672 | $ | — | $ | 3,672 | $ | — | $ | (3,671 | ) | $ | 1 | ||||||||||||||
Deposits received for securities loaned (2)(6) | 1,649 | — | 1,649 | (188 | ) | (1,332 | ) | 129 | |||||||||||||||||||
Derivative liabilities (2)(3) | 30 | — | 30 | (15 | ) | (15 | ) | — | |||||||||||||||||||
Total | $ | 5,351 | $ | — | $ | 5,351 | $ | (203 | ) | $ | (5,018 | ) | $ | 130 | |||||||||||||
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 $7 million and $19 million at December 31, 2014 and 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 December 31, 2014 and 2013. | ||||||||||||||||||||||||||
-5 | Included in the gross amounts of deposits paid for securities borrowed was $278 million and $415 million at December 31, 2014 and 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 was $1.1 billion and $682 million at December 31, 2014 and 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) | 12 Months Ended | |||||||||||||||||||||||
Dec. 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 December 31, 2014 and 2013 are shown in the following tables (dollars in millions): | |||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||||||
Cost | Unrealized / | Unrealized / | ||||||||||||||||||||||
Unrecognized | Unrecognized | |||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 11,156 | $ | 113 | $ | (105 | ) | $ | 11,164 | |||||||||||||||
Agency debentures | 620 | 28 | — | 648 | ||||||||||||||||||||
Agency debt securities | 487 | 12 | — | 499 | ||||||||||||||||||||
Municipal bonds | 40 | 1 | (1 | ) | 40 | |||||||||||||||||||
Corporate bonds | 5 | — | (1 | ) | 4 | |||||||||||||||||||
Total debt securities | 12,308 | 154 | (107 | ) | 12,355 | |||||||||||||||||||
Publicly traded equity securities(1) | 33 | — | — | 33 | ||||||||||||||||||||
Total available-for-sale securities | $ | 12,341 | $ | 154 | $ | (107 | ) | $ | 12,388 | |||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 9,793 | $ | 217 | $ | (39 | ) | $ | 9,971 | |||||||||||||||
Agency debentures | 164 | 2 | — | 166 | ||||||||||||||||||||
Agency debt securities | 2,281 | 54 | (6 | ) | 2,329 | |||||||||||||||||||
Other non-agency debt securities | 10 | — | — | 10 | ||||||||||||||||||||
Total held-to-maturity securities | $ | 12,248 | $ | 273 | $ | (45 | ) | $ | 12,476 | |||||||||||||||
December 31, 2013: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Debt 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 | |||||||||||||||||||
Agency debentures | 520 | — | (54 | ) | 466 | |||||||||||||||||||
Agency debt securities | 832 | 8 | (9 | ) | 831 | |||||||||||||||||||
Municipal bonds | 42 | — | (2 | ) | 40 | |||||||||||||||||||
Corporate bonds | 6 | — | (1 | ) | 5 | |||||||||||||||||||
Total debt securities | 13,922 | 76 | (406 | ) | 13,592 | |||||||||||||||||||
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 | |||||||||||||||
Agency debentures | 164 | 4 | — | 168 | ||||||||||||||||||||
Agency debt securities | 1,658 | 13 | (40 | ) | 1,631 | |||||||||||||||||||
Total held-to-maturity securities | $ | 10,181 | $ | 116 | $ | (205 | ) | $ | 10,092 | |||||||||||||||
-1 | Publicly traded equity securities consisted of investments in a mutual fund related to the Community Reinvestment Act. | |||||||||||||||||||||||
Investments Classified by Contractual Maturity Date | The contractual maturities of all available-for-sale and held-to-maturity debt securities at December 31, 2014 are shown below (dollars in millions): | |||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||
Due within one year | $ | 3 | $ | 3 | ||||||||||||||||||||
Due within one to five years | 9 | 9 | ||||||||||||||||||||||
Due within five to ten years | 842 | 849 | ||||||||||||||||||||||
Due after ten years | 11,454 | 11,494 | ||||||||||||||||||||||
Total available-for-sale debt securities | $ | 12,308 | $ | 12,355 | ||||||||||||||||||||
Held-to-maturity debt securities: | ||||||||||||||||||||||||
Due within one year | $ | 169 | $ | 171 | ||||||||||||||||||||
Due within one to five years | 892 | 921 | ||||||||||||||||||||||
Due within five to ten years | 2,787 | 2,868 | ||||||||||||||||||||||
Due after ten years | 8,400 | 8,516 | ||||||||||||||||||||||
Total held-to-maturity debt securities | $ | 12,248 | $ | 12,476 | ||||||||||||||||||||
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 December 31, 2014 and 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 | ||||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 403 | $ | (1 | ) | $ | 4,674 | $ | (104 | ) | $ | 5,077 | $ | (105 | ) | |||||||||
Agency debentures | — | — | 9 | — | 9 | — | ||||||||||||||||||
Municipal bonds | 3 | — | 16 | (1 | ) | 19 | (1 | ) | ||||||||||||||||
Corporate bonds | — | — | 5 | (1 | ) | 5 | (1 | ) | ||||||||||||||||
Total temporarily impaired available-for-sale securities | $ | 406 | $ | (1 | ) | $ | 4,704 | $ | (106 | ) | $ | 5,110 | $ | (107 | ) | |||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Agency residential mortgage-backed securities and CMOs | $ | 45 | $ | — | $ | 2,289 | $ | (39 | ) | $ | 2,334 | $ | (39 | ) | ||||||||||
Agency debt securities | 110 | (1 | ) | 560 | (5 | ) | 670 | (6 | ) | |||||||||||||||
Total temporarily impaired held-to-maturity securities | $ | 155 | $ | (1 | ) | $ | 2,849 | $ | (44 | ) | $ | 3,004 | $ | (45 | ) | |||||||||
December 31, 2013: | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 6,422 | $ | (268 | ) | $ | 1,266 | $ | (67 | ) | $ | 7,688 | $ | (335 | ) | |||||||||
Non-agency CMOs | — | — | 11 | (5 | ) | 11 | (5 | ) | ||||||||||||||||
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 | ) | |||||||||
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 years ended December 31, 2014, 2013 and 2012 of the credit loss component on debt securities held by the Company that had a noncredit loss recognized in other comprehensive income (loss) and had a credit loss recognized in earnings (dollars in millions): | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Credit loss balance, beginning of period | $ | 166 | $ | 187 | $ | 203 | ||||||||||||||||||
Additions: | ||||||||||||||||||||||||
Initial credit impairment | — | — | 1 | |||||||||||||||||||||
Subsequent credit impairment | — | 3 | 16 | |||||||||||||||||||||
Debt securities sold | (14 | ) | (24 | ) | (33 | ) | ||||||||||||||||||
Credit loss balance, end of period (1) | $ | 152 | $ | 166 | $ | 187 | ||||||||||||||||||
-1 | The credit loss balance at December 31, 2014, 2013 and 2012 included $123 million, $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 (loss) for the years ended December 31, 2014, 2013 and 2012 are as follows (dollars in millions): | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Gains (losses) on loans, net | $ | 4 | $ | (1 | ) | $ | 1 | |||||||||||||||||
Gains on securities, net: | ||||||||||||||||||||||||
Gains on available-for-sale securities | 42 | 69 | 212 | |||||||||||||||||||||
Losses on available-for-sale securities | — | (8 | ) | (5 | ) | |||||||||||||||||||
Hedge ineffectiveness | (10 | ) | 1 | (7 | ) | |||||||||||||||||||
Gains on securities, net | 32 | 62 | 200 | |||||||||||||||||||||
Gains on loans and securities, net | $ | 36 | $ | 61 | $ | 201 | ||||||||||||||||||
Loans_Receivable_Net_Tables
Loans Receivable, Net (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||
Total Loans Receivable, Net [Table Text Block] | 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 December 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||||||||
Recorded Investment | Allowance for Loan Losses | ||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Loans collectively evaluated for impairment | $ | 5,850 | $ | 7,163 | $ | 338 | $ | 329 | |||||||||||||||||||
Loans individually evaluated for impairment (TDRs) | 533 | 1,413 | 66 | 124 | |||||||||||||||||||||||
Total | $ | 6,383 | $ | 8,576 | $ | 404 | $ | 453 | |||||||||||||||||||
Loans receivable, net at December 31, 2014 and 2013 are summarized as follows (dollars in millions): | |||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
One- to four-family | $ | 3,060 | $ | 4,475 | |||||||||||||||||||||||
Home equity | 2,834 | 3,454 | |||||||||||||||||||||||||
Consumer and other | 455 | 602 | |||||||||||||||||||||||||
Total loans receivable | 6,349 | 8,531 | |||||||||||||||||||||||||
Unamortized premiums, net | 34 | 45 | |||||||||||||||||||||||||
Allowance for loan losses | (404 | ) | (453 | ) | |||||||||||||||||||||||
Total loans receivable, net | $ | 5,979 | $ | 8,123 | |||||||||||||||||||||||
Credit Quality Indicators for Loan Portfolio | The following tables show the distribution of the Company’s mortgage loan portfolios by credit quality indicator at December 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||||||||
One- to Four-Family | Home Equity | ||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||
Current LTV/CLTV (1) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
<€% | $ | 1,757 | $ | 1,912 | $ | 1,081 | $ | 1,142 | |||||||||||||||||||
80%-100% | 807 | 1,365 | 755 | 866 | |||||||||||||||||||||||
100%-120% | 311 | 711 | 557 | 736 | |||||||||||||||||||||||
>120% | 185 | 487 | 441 | 710 | |||||||||||||||||||||||
Total mortgage loans receivable | $ | 3,060 | $ | 4,475 | $ | 2,834 | $ | 3,454 | |||||||||||||||||||
Average estimated current LTV/CLTV (2) | 79 | % | 90 | % | 92 | % | 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. For home equity loans in the second lien position, the original balance of the first lien loan at origination date and updated valuations on the property underlying the loan are used to calculate CLTV. 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 | ||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||
Current FICO (1) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
>r0 | $ | 1,734 | $ | 2,252 | $ | 1,487 | $ | 1,811 | |||||||||||||||||||
719 - 700 | 296 | 436 | 292 | 343 | |||||||||||||||||||||||
699 - 680 | 260 | 366 | 238 | 293 | |||||||||||||||||||||||
679 - 660 | 197 | 296 | 203 | 245 | |||||||||||||||||||||||
659 - 620 | 237 | 404 | 258 | 310 | |||||||||||||||||||||||
<620 | 336 | 721 | 356 | 452 | |||||||||||||||||||||||
Total mortgage loans receivable | $ | 3,060 | $ | 4,475 | $ | 2,834 | $ | 3,454 | |||||||||||||||||||
-1 | FICO scores are updated on a quarterly basis; however, at December 31, 2014 and 2013, there were some loans for which the updated FICO scores were not available. The current FICO distribution at December 31, 2014 included the most recent FICO scores where available, otherwise the original FICO score was used, for approximately $49 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 December 31, 2014: | ||||||||||||||||||||||||||
Period of Conversion to Amortizing Loan | % of One- to Four-Family | % of Home Equity Line of | |||||||||||||||||||||||||
Portfolio | Credit Portfolio | ||||||||||||||||||||||||||
Already amortizing | 58% | 15% | |||||||||||||||||||||||||
Year ending December 31, 2015 | 5% | 27% | |||||||||||||||||||||||||
Year ending December 31, 2016 | 16% | 44% | |||||||||||||||||||||||||
Year ending December 31, 2017 or later | 21% | 14% | |||||||||||||||||||||||||
Loans by Delinquency Category and Non-Performing Loans | The following table shows total loans receivable by delinquency category at December 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||||||||
Current | 30-89 Days | 90-179 Days | 180+ Days | Total | |||||||||||||||||||||||
Delinquent | Delinquent | Delinquent | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||
One- to four-family | $ | 2,813 | $ | 88 | $ | 28 | $ | 131 | $ | 3,060 | |||||||||||||||||
Home equity | 2,702 | 60 | 29 | 43 | 2,834 | ||||||||||||||||||||||
Consumer and other | 447 | 7 | 1 | — | 455 | ||||||||||||||||||||||
Total loans receivable | $ | 5,962 | $ | 155 | $ | 58 | $ | 174 | $ | 6,349 | |||||||||||||||||
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 nonperforming loans (dollars in millions): | |||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
One- to four-family | $ | 294 | $ | 526 | |||||||||||||||||||||||
Home equity | 165 | 164 | |||||||||||||||||||||||||
Consumer and other | 1 | 3 | |||||||||||||||||||||||||
Total nonperforming loans receivable | $ | 460 | $ | 693 | |||||||||||||||||||||||
Allowance for Loan Losses Rollforward | The following table provides a roll forward by loan portfolio of the allowance for loan losses for the years ended December 31, 2014, 2013 and 2012 (dollars in millions): | ||||||||||||||||||||||||||
Year Ended December 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 | (42 | ) | 82 | (4 | ) | 36 | |||||||||||||||||||||
Charge-offs | (44 | ) | (65 | ) | (17 | ) | (126 | ) | |||||||||||||||||||
Recoveries | 11 | 24 | 6 | 41 | |||||||||||||||||||||||
Charge-offs, net | (33 | ) | (41 | ) | (11 | ) | (85 | ) | |||||||||||||||||||
Allowance for loan losses, end of period | $ | 27 | $ | 367 | $ | 10 | $ | 404 | |||||||||||||||||||
Year Ended December 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 | (55 | ) | 192 | 6 | 143 | ||||||||||||||||||||||
Charge-offs | (41 | ) | (157 | ) | (33 | ) | (231 | ) | |||||||||||||||||||
Recoveries | 14 | 34 | 12 | 60 | |||||||||||||||||||||||
Charge-offs, net | (27 | ) | (123 | ) | (21 | ) | (171 | ) | |||||||||||||||||||
Allowance for loan losses, end of period | $ | 102 | $ | 326 | $ | 25 | $ | 453 | |||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||
One- to | Home | Consumer | Total | ||||||||||||||||||||||||
Four-Family | Equity | and Other | |||||||||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 314 | $ | 463 | $ | 46 | $ | 823 | |||||||||||||||||||
Provision for loan losses | 51 | 271 | 33 | 355 | |||||||||||||||||||||||
Charge-offs | (190 | ) | (517 | ) | (51 | ) | (758 | ) | |||||||||||||||||||
Recoveries | 9 | 40 | 12 | 61 | |||||||||||||||||||||||
Charge-offs, net | (181 | ) | (477 | ) | (39 | ) | (697 | ) | |||||||||||||||||||
Allowance for loan losses, end of period | $ | 184 | $ | 257 | $ | 40 | $ | 481 | |||||||||||||||||||
Impaired Financing Receivables | The following table shows a summary of the Company’s recorded investment in TDRs that were on accrual and nonaccrual status, further disaggregated by delinquency status, in addition to the recorded investment in TDRs at December 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||||||||
Nonaccrual TDRs | |||||||||||||||||||||||||||
Accrual | Current(2) | 30-89 Days | 90-179 Days | 180+ Days | Total Recorded | ||||||||||||||||||||||
TDRs(1) | Delinquent | Delinquent | Delinquent | Investment in | |||||||||||||||||||||||
TDRs (3)(4) | |||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||
One- to four-family | $ | 121 | $ | 111 | $ | 24 | $ | 12 | $ | 48 | $ | 316 | |||||||||||||||
Home equity | 127 | 51 | 14 | 6 | 19 | 217 | |||||||||||||||||||||
Total | $ | 248 | $ | 162 | $ | 38 | $ | 18 | $ | 67 | $ | 533 | |||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
One- to four-family | $ | 774 | $ | 127 | $ | 102 | $ | 44 | $ | 125 | $ | 1,172 | |||||||||||||||
Home equity | 176 | 22 | 17 | 7 | 19 | 241 | |||||||||||||||||||||
Total | $ | 950 | $ | 149 | $ | 119 | $ | 51 | $ | 144 | $ | 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, bankruptcy loans and certain junior lien TDRs that have a delinquent senior lien. | ||||||||||||||||||||||||||
-3 | The unpaid principal balance in one- to four-family TDRs was $0.3 billion and $1.2 billion at December 31, 2014 and 2013, respectively. For home equity loans, the recorded investment in TDRs represents the unpaid principal balance. | ||||||||||||||||||||||||||
-4 | Total recorded investment in TDRs at December 31, 2014 consisted of $354 million of loans modified as TDRs and $179 million of loans that have been charged off due to bankruptcy notification. Total recorded investment in TDRs at December 31, 2013 consisted of $1.2 billion of loans modified as TDRs and $189 million of loans that have been charged off due to bankruptcy notification. | ||||||||||||||||||||||||||
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 December 31, 2014, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||
One- to four-family | $ | 576 | $ | 1,205 | $ | 1,054 | $ | 16 | $ | 33 | $ | 31 | |||||||||||||||
Home equity | 227 | 262 | 297 | 18 | 20 | 12 | |||||||||||||||||||||
Total | $ | 803 | $ | 1,467 | $ | 1,351 | $ | 34 | $ | 53 | $ | 43 | |||||||||||||||
The following table shows detailed information related to the Company’s TDRs at December 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||||||
December 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 | $ | 88 | $ | 9 | $ | 79 | $ | 403 | $ | 60 | $ | 343 | |||||||||||||||
Home equity | $ | 118 | $ | 57 | $ | 61 | $ | 140 | $ | 64 | $ | 76 | |||||||||||||||
Without a recorded allowance:(1) | |||||||||||||||||||||||||||
One- to four-family | $ | 228 | $ | — | $ | 228 | $ | 769 | $ | — | $ | 769 | |||||||||||||||
Home equity | $ | 99 | $ | — | $ | 99 | $ | 101 | $ | — | $ | 101 | |||||||||||||||
Total: | |||||||||||||||||||||||||||
One- to four-family | $ | 316 | $ | 9 | $ | 307 | $ | 1,172 | $ | 60 | $ | 1,112 | |||||||||||||||
Home equity | $ | 217 | $ | 57 | $ | 160 | $ | 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 - Modifications | The following table shows the recorded investment in modifications that experienced a payment default within 12 months after the modification for the three years ended December 31, 2014, 2013 and 2012 (dollars in millions): | ||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||
Loans | Investment | Loans | Investment | Loans | Investment | ||||||||||||||||||||||
One- to four-family(1) | 27 | $ | 9 | 142 | $ | 53 | 260 | $ | 100 | ||||||||||||||||||
Home equity(2) | 55 | 3 | 69 | 3 | 367 | 18 | |||||||||||||||||||||
Total | 82 | $ | 12 | 211 | $ | 56 | 627 | $ | 118 | ||||||||||||||||||
-1 | For the years ended December 31, 2014, 2013 and 2012, $1 million, $18 million and $28 million, respectively, of the recorded investment in one- to four-family loans that had a payment default in the trailing 12 months was classified as current. | ||||||||||||||||||||||||||
-2 | For the years ended December 31, 2014, 2013 and 2012, $1 million, $1 million and $6 million, respectively, of the recorded investment in home equity loans that had a payment default in the trailing 12 months was 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 years ended December 31, 2014, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||
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 | 64 | $ | 1 | $ | — | $ | 11 | $ | 2 | $ | 6 | $ | 20 | ||||||||||||||
Home equity | 195 | — | — | 4 | 2 | 9 | 15 | ||||||||||||||||||||
Total | 259 | $ | 1 | $ | — | $ | 15 | $ | 4 | $ | 15 | $ | 35 | ||||||||||||||
Year Ended December 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 | 324 | $ | 19 | $ | 5 | $ | 71 | $ | 11 | $ | 18 | $ | 124 | ||||||||||||||
Home equity | 253 | — | — | 7 | 7 | 7 | 21 | ||||||||||||||||||||
Total | 577 | $ | 19 | $ | 5 | $ | 78 | $ | 18 | $ | 25 | $ | 145 | ||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||
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 | 614 | $ | 53 | $ | 37 | $ | 131 | $ | 12 | $ | 19 | $ | 252 | ||||||||||||||
Home equity | 638 | — | — | 5 | 39 | 10 | 54 | ||||||||||||||||||||
Total | 1,252 | $ | 53 | $ | 37 | $ | 136 | $ | 51 | $ | 29 | $ | 306 | ||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||
Financial Impact | |||||||||||||||||||||||||||
Principal | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
Forgiven | Weighted Average Interest Rate | Weighted Average Interest Rate | |||||||||||||||||||||||||
One- to four-family | $ | — | 5.2 | % | 2.6 | % | |||||||||||||||||||||
Home equity | — | 5.4 | % | 2.4 | % | ||||||||||||||||||||||
Total | $ | — | |||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||
Financial Impact | |||||||||||||||||||||||||||
Principal | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
Forgiven | Weighted Average Interest Rate | Weighted Average Interest Rate | |||||||||||||||||||||||||
One- to four-family | $ | 7 | 5.2 | % | 2.3 | % | |||||||||||||||||||||
Home equity | — | 4.7 | % | 1.9 | % | ||||||||||||||||||||||
Total | $ | 7 | |||||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||
Financial Impact | |||||||||||||||||||||||||||
Principal | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
Forgiven | Weighted Average Interest Rate | Weighted Average Interest Rate | |||||||||||||||||||||||||
One- to four-family | $ | 17 | 5.9 | % | 2.3 | % | |||||||||||||||||||||
Home equity | — | 4.4 | % | 1.5 | % | ||||||||||||||||||||||
Total | $ | 17 | |||||||||||||||||||||||||
Accounting_for_Derivative_Inst1
Accounting for Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 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 December 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
Notional | Asset(1) | Liability(2) | Net(3) | |||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Cash flow hedges | $ | 2,000 | $ | 23 | $ | (24 | ) | $ | (1 | ) | ||||||||||||||
Fair value hedges | 1,069 | 1 | (42 | ) | (41 | ) | ||||||||||||||||||
Total derivatives designated as hedging instruments(4) | $ | 3,069 | $ | 24 | $ | (66 | ) | $ | (42 | ) | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Cash flow hedges | $ | 3,305 | $ | 27 | $ | (168 | ) | $ | (141 | ) | ||||||||||||||
Fair value hedges | 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 December 31, 2014 and 2013. | |||||||||||||||||||||||
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 cash flow hedges by type of hedged item at December 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Repurchase agreements | $ | (341 | ) | $ | (379 | ) | ||||||||||||||||||
FHLB advances | (81 | ) | (99 | ) | ||||||||||||||||||||
Total balance of cash flow hedges, before tax | (422 | ) | (478 | ) | ||||||||||||||||||||
Tax benefit | 161 | 180 | ||||||||||||||||||||||
Total balance of cash flow hedges, net of tax | $ | (261 | ) | $ | (298 | ) | ||||||||||||||||||
The following table shows the balance in accumulated other comprehensive loss attributable to active and discontinued cash flow hedges at December 31, 2014 and 2013 (dollars in millions): | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Accumulated other comprehensive loss balance (net of tax) related to: | ||||||||||||||||||||||||
Discontinued cash flow hedges | $ | (227 | ) | $ | (201 | ) | ||||||||||||||||||
Active cash flow hedges | (34 | ) | (97 | ) | ||||||||||||||||||||
Total cash flow hedges | $ | (261 | ) | $ | (298 | ) | ||||||||||||||||||
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 (loss) for the years ended December 31, 2014, 2013 and 2012 (dollars in millions): | ||||||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Gains (losses) on derivatives recognized in OCI (effective portion), net of tax | $ | (39 | ) | $ | 67 | $ | (72 | ) | ||||||||||||||||
Losses reclassified from AOCI into earnings (effective portion), net of tax | $ | (76 | ) | $ | (87 | ) | $ | (78 | ) | |||||||||||||||
Cash flow hedge ineffectiveness gains(1) | $ | — | $ | 1 | $ | — | ||||||||||||||||||
-1 | The cash flow hedge ineffectiveness is reflected in the gains on loans and securities, net line item on the consolidated statement of income (loss). | |||||||||||||||||||||||
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 (loss) for the years ended December 31, 2014, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Hedging | Hedged | Hedge | Hedging | Hedged | Hedge | |||||||||||||||||||
Instrument | Item | Ineffectiveness(1) | Instrument | Item | Ineffectiveness(1) | |||||||||||||||||||
Agency debentures | $ | (100 | ) | $ | 91 | $ | (9 | ) | $ | 73 | $ | (72 | ) | $ | 1 | |||||||||
Agency mortgage-backed securities | (33 | ) | 32 | (1 | ) | 34 | (35 | ) | (1 | ) | ||||||||||||||
Total gains (losses) included in earnings | $ | (133 | ) | $ | 123 | $ | (10 | ) | $ | 107 | $ | (107 | ) | $ | — | |||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||
Hedging | Hedged | Hedge | ||||||||||||||||||||||
Instrument | Item | Ineffectiveness(1) | ||||||||||||||||||||||
Agency debentures | $ | (18 | ) | $ | 16 | $ | (2 | ) | ||||||||||||||||
Agency mortgage-backed securities | (7 | ) | 7 | — | ||||||||||||||||||||
FHLB advances | 14 | (19 | ) | (5 | ) | |||||||||||||||||||
Total gains (losses) included in earnings | $ | (11 | ) | $ | 4 | $ | (7 | ) | ||||||||||||||||
-1 | Reflected in the gains on loans and securities, net line item on the consolidated statement of income (loss). |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||
Property and Equipment, Net | Property and equipment, net consisted of the following assets at December 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Amount | Depreciation | Amount | Amount | Depreciation | Amount | |||||||||||||||||||
and | and | |||||||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
Software | $ | 487 | $ | (391 | ) | $ | 96 | $ | 489 | $ | (373 | ) | $ | 116 | ||||||||||
Leasehold improvements | 114 | (84 | ) | 30 | 112 | (77 | ) | 35 | ||||||||||||||||
Equipment | 102 | (76 | ) | 26 | 95 | (73 | ) | 22 | ||||||||||||||||
Buildings | 72 | (26 | ) | 46 | 72 | (24 | ) | 48 | ||||||||||||||||
Furniture and fixtures | 23 | (21 | ) | 2 | 23 | (20 | ) | 3 | ||||||||||||||||
Land | 3 | — | 3 | 3 | — | 3 | ||||||||||||||||||
Construction in progress | 42 | — | 42 | 10 | — | 10 | ||||||||||||||||||
Total | $ | 843 | $ | (598 | ) | $ | 245 | $ | 804 | $ | (567 | ) | $ | 237 | ||||||||||
Schedule of Sale Leaseback Transactions | The obligation for future minimum lease payments and minimum sublease proceeds to be received under this lease is as follows (dollars in millions): | |||||||||||||||||||||||
Obligation for Minimum Lease | Minimum Sublease | |||||||||||||||||||||||
Payments | Proceeds | |||||||||||||||||||||||
Years ending December 31, | ||||||||||||||||||||||||
2015 | $ | 4 | $ | (3 | ) | |||||||||||||||||||
2016 | 4 | (3 | ) | |||||||||||||||||||||
2017 | 5 | (3 | ) | |||||||||||||||||||||
2018 | 5 | (3 | ) | |||||||||||||||||||||
2019 | 5 | (3 | ) | |||||||||||||||||||||
Thereafter | 24 | (9 | ) | |||||||||||||||||||||
Total | $ | 47 | $ | (24 | ) | |||||||||||||||||||
Goodwill_and_Other_Intangibles1
Goodwill and Other Intangibles, Net (Table) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Schedule of Goodwill | The following table outlines the activity in the carrying value of the Company’s goodwill, which is all assigned to the Company’s trading and investing segment (dollars in millions): | |||||||||||||||
Trading & Investing | ||||||||||||||||
Balance at December 31, 2012 | $ | 1,934 | ||||||||||||||
Impairment of goodwill | (142 | ) | ||||||||||||||
Balance at December 31, 2013 | 1,792 | |||||||||||||||
Activity | — | |||||||||||||||
Balance at December 31, 2014 | $ | 1,792 | ||||||||||||||
Schedule of Finite-Lived Intangible Assets | The following table outlines the Company's other intangible assets with finite lives consisting of customer lists, which are amortized on an accelerated basis (dollars in millions): | |||||||||||||||
Customer Lists | ||||||||||||||||
Weighted Average | Weighted Average | Gross Amount | Accumulated | Net Amount | ||||||||||||
Original | Remaining | Amortization | ||||||||||||||
Useful Life | Useful Life | |||||||||||||||
(Years) | (Years) | |||||||||||||||
December 31, 2014 | 20 | 11 | $ | 435 | $ | (241 | ) | $ | 194 | |||||||
December 31, 2013 | 20 | 12 | $ | 435 | $ | (219 | ) | $ | 216 | |||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Assuming no future impairments of customer lists or additional acquisitions or dispositions, the following table presents the Company's future annual amortization expense (dollars in millions): | |||||||||||||||
Years ending December 31, | ||||||||||||||||
2015 | $ | 20 | ||||||||||||||
2016 | 20 | |||||||||||||||
2017 | 19 | |||||||||||||||
2018 | 19 | |||||||||||||||
2019 | 18 | |||||||||||||||
Thereafter | 98 | |||||||||||||||
Total future amortization expense | $ | 194 | ||||||||||||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Assets [Abstract] | ||||||||
Schedule of Other Assets | Other assets consisted of the following at December 31, 2014 and 2013 (dollars in millions): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Deferred tax assets, net | $ | 951 | $ | 1,239 | ||||
Deposits paid for securities borrowed | 474 | 536 | ||||||
Held-for-sale assets(1) | — | 177 | ||||||
Other(2) | 1,158 | 869 | ||||||
Total other assets | $ | 2,583 | $ | 2,821 | ||||
-1 | Represents assets related to the market making business, which were classified as held-for-sale at December 31, 2013. | |||||||
-2 | Includes accrued interest receivable, bank and brokerage operational related receivables, derivative assets, REO and repossessed assets, third party loan servicing receivable, other prepaids and other assets. |
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Deposits [Abstract] | ||||||||||||||||
Schedule Of Deposits By Type | Deposits are summarized as follows (dollars in millions): | |||||||||||||||
Amount | Weighted-Average Rate | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Sweep deposits(1) | $ | 19,119 | $ | 19,592 | 0.03 | % | 0.04 | % | ||||||||
Complete savings deposits | 3,753 | 4,303 | 0.01 | % | 0.01 | % | ||||||||||
Checking deposits | 1,137 | 1,098 | 0.03 | % | 0.03 | % | ||||||||||
Other money market and savings deposits | 833 | 914 | 0.01 | % | 0.01 | % | ||||||||||
Time deposits(2) | 48 | 64 | 0.5 | % | 0.64 | % | ||||||||||
Total deposits(3) | $ | 24,890 | $ | 25,971 | 0.03 | % | 0.03 | % | ||||||||
-1 | A sweep product transfers brokerage customer balances to banking subsidiaries, which hold these funds as customer deposits in FDIC insured demand deposit and money market deposit accounts. | |||||||||||||||
-2 | Time deposits represent certificates of deposit and brokered certificates of deposit. | |||||||||||||||
-3 | As of December 31, 2014 and 2013, the Company had $141 million and $129 million in non-interest bearing deposits, respectively. | |||||||||||||||
Scheduled Maturities of Time Deposits Table | At December 31, 2014, scheduled maturities of time deposits were as follows (dollars in millions): | |||||||||||||||
Years ending December 31, | ||||||||||||||||
2015 | $ | 33 | ||||||||||||||
2016 | 7 | |||||||||||||||
2017 | 4 | |||||||||||||||
2018 | 3 | |||||||||||||||
2019 | 1 | |||||||||||||||
Thereafter | — | |||||||||||||||
Subtotal | 48 | |||||||||||||||
Unamortized discount, net | — | |||||||||||||||
Total time deposits | $ | 48 | ||||||||||||||
Schedule Of Time Deposits 100000 And 250000 Or More | Scheduled maturities of certificates of deposit with denominations greater than or equal to $100,000, and greater than or equal to $250,000, which is the FDIC deposit insurance coverage limit, were as follows (dollars in millions): | |||||||||||||||
>=100,000 | >=250,000 | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Three months or less | $ | 1 | $ | 1 | $ | — | $ | — | ||||||||
Three through six months | 1 | 2 | — | — | ||||||||||||
Six through twelve months | 2 | 2 | — | — | ||||||||||||
Over twelve months | 2 | 3 | 1 | 1 | ||||||||||||
Total certificates of deposit | $ | 6 | $ | 8 | $ | 1 | $ | 1 | ||||||||
Securities_Sold_Under_Agreemen1
Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 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 December 31, 2014 and 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 | $ | 3,022 | $ | 270 | $ | — | $ | 3,292 | 0.35% | |||||||||
Due between one and two years | 350 | 250 | — | 600 | 0.60% | |||||||||||||
Due between two and three years | 300 | 400 | — | 700 | 0.68% | |||||||||||||
Thereafter | — | — | 428 | 428 | 2.92% | |||||||||||||
Subtotal | 3,672 | 920 | 428 | 5,020 | 0.64% | |||||||||||||
Fair value hedge adjustments | — | 21 | — | 21 | ||||||||||||||
Deferred costs | — | (70 | ) | — | (70 | ) | ||||||||||||
Total other borrowings at December 31, 2014 | $ | 3,672 | $ | 871 | $ | 428 | $ | 4,971 | 0.64% | |||||||||
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 years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets | Below is a summary of repurchase agreements and collateral associated with the repurchase agreements at December 31, 2014 (dollars in millions): | |||||||||||||||||
Collateral | ||||||||||||||||||
Repurchase Agreements | U.S. Government Sponsored | |||||||||||||||||
Enterprise Obligations | ||||||||||||||||||
Contractual Maturity | Weighted | Amount | Amortized Cost | Fair Value | ||||||||||||||
Average | ||||||||||||||||||
Interest Rate | ||||||||||||||||||
Up to 30 days | 0.27% | $ | 1,850 | $ | 1,916 | $ | 1,929 | |||||||||||
30 to 90 days | 0.39% | 155 | 161 | 163 | ||||||||||||||
Over 90 days | 0.64% | 1,667 | 1,729 | 1,753 | ||||||||||||||
Total | 0.44% | $ | 3,672 | $ | 3,806 | $ | 3,845 | |||||||||||
Schedule Of Outstanding Trusts | The face values of outstanding trusts at December 31, 2014 are shown below (dollars in millions): | |||||||||||||||||
Trusts | Face Value | Maturity | Annual Interest Rate | |||||||||||||||
Date | ||||||||||||||||||
ETBH Capital Trust II | $ | 5 | 2031 | 10.25% | ||||||||||||||
ETBH Capital Trust I | 20 | 2031 | 3.75% above 6-month LIBOR | |||||||||||||||
ETBH Capital Trust V, VI, VIII | 51 | 2032 | 3.25%-3.65% above 3-month LIBOR | |||||||||||||||
ETBH Capital Trust VII, IX—XII | 65 | 2033 | 3.00%-3.30% above 3-month LIBOR | |||||||||||||||
ETBH Capital Trust XIII—XVIII, XX | 77 | 2034 | 2.45%-2.90% above 3-month LIBOR | |||||||||||||||
ETBH Capital Trust XIX, XXI, XXII | 60 | 2035 | 2.20%-2.40% above 3-month LIBOR | |||||||||||||||
ETBH Capital Trust XXIII—XXIV | 45 | 2036 | 2.10% above 3-month LIBOR | |||||||||||||||
ETBH Capital Trust XXV—XXX | 110 | 2037 | 1.90%-2.00% above 3-month LIBOR | |||||||||||||||
Total | $ | 433 | ||||||||||||||||
Corporate_Debt_Tables
Corporate Debt (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Schedule of Corporate Debt Instruments | Corporate debt at December 31, 2014 and 2013 is outlined in the following table (dollars in millions): | |||||||||||
Face Value | Discount | Net | ||||||||||
December 31, 2014 | ||||||||||||
Interest-bearing notes: | ||||||||||||
6 3/8% Notes, due 2019 | $ | 800 | $ | (5 | ) | $ | 795 | |||||
5 3/8% Notes, due 2022 | 540 | (7 | ) | 533 | ||||||||
Total interest-bearing notes | 1,340 | (12 | ) | 1,328 | ||||||||
Non-interest-bearing debt: | ||||||||||||
0% Convertible debentures, due 2019 | 38 | — | 38 | |||||||||
Total corporate debt | $ | 1,378 | $ | (12 | ) | $ | 1,366 | |||||
Face Value | Discount | Net | ||||||||||
31-Dec-13 | ||||||||||||
Interest-bearing notes: | ||||||||||||
6 3/4% Notes, due 2016 | $ | 435 | $ | (4 | ) | $ | 431 | |||||
6% Notes, due 2017 | 505 | (4 | ) | 501 | ||||||||
6 3/8% Notes, due 2019 | 800 | (6 | ) | 794 | ||||||||
Total interest-bearing notes | 1,740 | (14 | ) | 1,726 | ||||||||
Non-interest-bearing debt: | ||||||||||||
0% Convertible debentures, due 2019 | 42 | — | 42 | |||||||||
Total corporate debt | $ | 1,782 | $ | (14 | ) | $ | 1,768 | |||||
Schedule of Maturities of Corporate Debt | Scheduled principal payments of corporate debt at December 31, 2014 were as follows (dollars in millions): | |||||||||||
Years ending December 31, | ||||||||||||
2015 | $ | — | ||||||||||
2016 | — | |||||||||||
2017 | — | |||||||||||
2018 | — | |||||||||||
2019 | 800 | |||||||||||
Thereafter | 578 | |||||||||||
Total future principal payments of corporate debt | 1,378 | |||||||||||
Unamortized discount | (12 | ) | ||||||||||
Total corporate debt | $ | 1,366 | ||||||||||
Other_Liabilities_Tables
Other Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ||||||||
Other Liabilities [Table Text Block] | Other liabilities consisted of the following at December 31, 2014 and 2013 (dollars in millions): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Deposits received for securities loaned | $ | 1,649 | $ | 1,050 | ||||
Held-for-sale liabilities(1) | — | 107 | ||||||
Other(2) | 824 | 396 | ||||||
Total other liabilities | $ | 2,473 | $ | 1,553 | ||||
-1 | Represents liabilities related to the market making business, which was classified as held-for-sale at December 31, 2013. | |||||||
-2 | Includes accounts payable, accrued expenses, bank and brokerage operational related payables, derivative liabilities, financing obligations, income tax liabilities and other liabilities. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the years ended December 31, 2014, 2013 and 2012 were as follows (dollars in millions): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State | 4 | 3 | 3 | |||||||||
Foreign | — | — | — | |||||||||
Total current | 4 | 3 | 3 | |||||||||
Deferred: | ||||||||||||
Federal | 152 | 127 | (137 | ) | ||||||||
State | 3 | (20 | ) | — | ||||||||
Foreign | — | — | — | |||||||||
Total deferred | 155 | 107 | (137 | ) | ||||||||
Non-current tax expense (benefit) | — | (1 | ) | 116 | ||||||||
Income tax expense (benefit) | $ | 159 | $ | 109 | $ | (18 | ) | |||||
Schedule of Income before Income Tax, Domestic and Foreign | The following table presents the components of income (loss) before income tax expense (benefit) for the years ended December 31, 2014, 2013 and 2012 (dollars in millions): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 438 | $ | 186 | $ | (135 | ) | |||||
Foreign | 14 | 9 | 4 | |||||||||
Income (loss) before income tax expense (benefit) | $ | 452 | $ | 195 | $ | (131 | ) | |||||
Summary of Income Tax Contingencies | The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012 (dollars in millions): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits, beginning of period | $ | 333 | $ | 492 | $ | 377 | ||||||
Additions based on tax positions related to prior years | 12 | 10 | 131 | |||||||||
Additions based on tax positions related to current year | — | — | 8 | |||||||||
Reductions based on tax positions related to prior years | (14 | ) | (163 | ) | (23 | ) | ||||||
Settlements with taxing authorities | — | (5 | ) | — | ||||||||
Statute of limitations lapses | (1 | ) | (1 | ) | (1 | ) | ||||||
Unrecognized tax benefits, end of period | $ | 330 | $ | 333 | $ | 492 | ||||||
The following table summarizes the tax years that are either currently under examination or remain open under the statute of limitations and subject to examination by the major tax jurisdictions in which the Company operates: | ||||||||||||
Jurisdiction | Open Tax Years | |||||||||||
Hong Kong | 2008-2014 | |||||||||||
United Kingdom | 2012-2014 | |||||||||||
United States | 2004-2014 | |||||||||||
Various states(1) | 2007-2014 | |||||||||||
-1 | Major state tax jurisdictions include California, Georgia, Illinois, New Jersey, New York and Virginia. | |||||||||||
Schedule of Deferred Tax Assets and Liabilities | The temporary differences and tax carryforwards that created deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 are summarized in the following table (dollars in millions): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating losses | $ | 632 | $ | 572 | ||||||||
Reserves and allowances, net | 601 | 891 | ||||||||||
Mark to market | 110 | 125 | ||||||||||
Deferred compensation | 43 | 36 | ||||||||||
Tax credits | 37 | 31 | ||||||||||
Basis differences in investments | 9 | 12 | ||||||||||
Other | 1 | 7 | ||||||||||
Total deferred tax assets | 1,433 | 1,674 | ||||||||||
Valuation allowance | (91 | ) | (82 | ) | ||||||||
Total deferred tax assets, net of valuation allowance | 1,342 | 1,592 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation and amortization | (387 | ) | (353 | ) | ||||||||
Other | (4 | ) | — | |||||||||
Total deferred tax liabilities | (391 | ) | (353 | ) | ||||||||
Net deferred tax asset | $ | 951 | $ | 1,239 | ||||||||
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate differed from the federal statutory rate as summarized in the following table for the years ended December 31, 2014, 2013 and 2012: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory rate | 35 | % | 35 | % | (35.0 | )% | ||||||
State income taxes, net of federal tax benefit | 2 | 2.8 | (11.8 | ) | ||||||||
Difference between statutory rate and foreign effective tax rate | (1.0 | ) | (1.4 | ) | (1.1 | ) | ||||||
Tax exempt income | (0.1 | ) | (0.3 | ) | (0.4 | ) | ||||||
Disallowed interest expense | — | — | 10.3 | |||||||||
Change in valuation allowance | 2.2 | 1.1 | 6.9 | |||||||||
2009 Debt Exchange | — | — | (19.7 | ) | ||||||||
Tax credits | (0.6 | ) | (1.8 | ) | (12.2 | ) | ||||||
California state tax legislative changes | — | — | 19.2 | |||||||||
Estimated reserve for uncertain tax positions | (0.3 | ) | (2.6 | ) | 9.1 | |||||||
Deferred tax adjustments | (1.6 | ) | 4.5 | 8.4 | ||||||||
Disallowed losses on early extinguishment of debt | — | — | 7.4 | |||||||||
Tax on undistributed earnings and profits in certain foreign subsidiaries | 1.1 | 2.4 | 2.5 | |||||||||
New York state tax legislative changes | (1.8 | ) | — | — | ||||||||
Tax impact of exit of market making business | — | 16.4 | — | |||||||||
Other | 0.3 | (0.2 | ) | 2.4 | ||||||||
Effective tax rate | 35.2 | % | 55.9 | % | (14.0 | )% |
Shareholders_Equity_Table
Shareholder's Equity (Table) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Schedule Of Shareholders' Equity Activity | The activity in shareholders’ equity during the year ended December 31, 2014 is summarized in the following table (dollars in millions): | |||||||||||||||
Common Stock / | Accumulated Deficit / | Total | ||||||||||||||
Additional Paid-In | Other Comprehensive | |||||||||||||||
Capital | Loss | |||||||||||||||
Beginning balance, December 31, 2013 | $ | 7,331 | $ | (2,475 | ) | $ | 4,856 | |||||||||
Net income | — | 293 | 293 | |||||||||||||
Net change from available-for-sale securities | — | 167 | 167 | |||||||||||||
Net change from cash flow hedging instruments | — | 37 | 37 | |||||||||||||
Other(1) | 22 | — | 22 | |||||||||||||
Ending balance, December 31, 2014 | $ | 7,353 | $ | (1,978 | ) | $ | 5,375 | |||||||||
-1 | Other includes employee share-based compensation and conversions of convertible debentures. | |||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The following tables present after-tax changes in each component of accumulated other comprehensive loss for the years ended December 31, 2014, 2013 and 2012 (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 | 193 | (39 | ) | — | 154 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | (26 | ) | 76 | — | 50 | |||||||||||
Net change | 167 | 37 | — | 204 | ||||||||||||
Ending balance, December 31, 2014 | $ | 7 | $ | (261 | ) | $ | 5 | $ | (249 | ) | ||||||
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 | (260 | ) | 67 | — | (193 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | (37 | ) | 87 | — | 50 | |||||||||||
Net change | (297 | ) | 154 | — | (143 | ) | ||||||||||
Ending balance, December 31, 2013 | $ | (160 | ) | $ | (298 | ) | $ | 5 | $ | (453 | ) | |||||
Available-for-sale | Cash Flow | Foreign | Total | |||||||||||||
Securities | Hedging | Currency | ||||||||||||||
Instruments | Translation | |||||||||||||||
Beginning balance, December 31, 2011 | $ | 68 | $ | (458 | ) | $ | 3 | $ | (387 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 197 | (72 | ) | 2 | 127 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | (128 | ) | 78 | — | (50 | ) | ||||||||||
Net change | 69 | 6 | 2 | 77 | ||||||||||||
Beginning balance, December 31, 2012 | $ | 137 | $ | (452 | ) | $ | 5 | $ | (310 | ) | ||||||
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 years ended December 31, 2014 and 2013 (dollars in millions): | |||||||||||||||
Accumulated Other Comprehensive Loss Components | Amounts Reclassified from Accumulated Other Comprehensive Loss | Affected Line Items in the Consolidated Statement of Income (Loss) | ||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
$ | 42 | $ | 60 | Gains on loans and securities, net | ||||||||||||
(16 | ) | (23 | ) | Tax expense (benefit) | ||||||||||||
$ | 26 | $ | 37 | Reclassification into earnings, net | ||||||||||||
Cash flow hedging instruments: | ||||||||||||||||
$ | — | $ | 8 | Operating interest income | ||||||||||||
(125 | ) | (147 | ) | Operating interest expense | ||||||||||||
(125 | ) | (139 | ) | Reclassification into earnings, before tax | ||||||||||||
49 | 52 | Tax expense (benefit) | ||||||||||||||
$ | (76 | ) | $ | (87 | ) | Reclassification into earnings, net |
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Earnings Per Share Reconciliation | The following table presents a reconciliation of basic and diluted earnings (loss) per share (in millions, except share data and per share amounts): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic: | ||||||||||||
Net income (loss) | $ | 293 | $ | 86 | $ | (113 | ) | |||||
Basic weighted-average shares outstanding (in thousands) | 288,705 | 286,991 | 285,748 | |||||||||
Basic earnings (loss) per share | $ | 1.02 | $ | 0.3 | $ | (0.39 | ) | |||||
Diluted: | ||||||||||||
Net income (loss) | $ | 293 | $ | 86 | $ | (113 | ) | |||||
Basic weighted-average shares outstanding (in thousands) | 288,705 | 286,991 | 285,748 | |||||||||
Effect of dilutive securities: | ||||||||||||
Weighted-average convertible debentures (in thousands) | 3,999 | 4,125 | — | |||||||||
Weighted-average options and restricted stock issued to employees (in thousands) | 1,399 | 1,473 | — | |||||||||
Diluted weighted-average shares outstanding (in thousands) | 294,103 | 292,589 | 285,748 | |||||||||
Diluted earnings (loss) per share | $ | 1 | $ | 0.29 | $ | (0.39 | ) | |||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The Company excluded the following shares from the calculations of diluted earnings (loss) per share for the years ended December 31, 2014, 2013 and 2012 as the effect would have been anti-dilutive (shares in millions): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Weighted-average shares excluded as a result of the Company’s net loss: | ||||||||||||
Convertible debentures | N/A | N/A | 4.1 | |||||||||
Stock options and restricted stock awards and units | N/A | N/A | 0.4 | |||||||||
Other stock options and restricted stock awards and units | 0.5 | 1.7 | 2.5 | |||||||||
Total | 0.5 | 1.7 | 7 | |||||||||
Regulatory_Requirements_Tables
Regulatory Requirements (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 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 December 31, 2014 and 2013 (dollars in millions): | |||||||||||||||||
Required Net | Net Capital | Excess Net | ||||||||||||||||
Capital | Capital | |||||||||||||||||
December 31, 2014: | ||||||||||||||||||
E*TRADE Clearing LLC(1) | $ | 170 | $ | 795 | $ | 625 | ||||||||||||
E*TRADE Securities LLC(1)(2) | — | 459 | 459 | |||||||||||||||
Other broker-dealers | 1 | 19 | 18 | |||||||||||||||
Total | $ | 171 | $ | 1,273 | $ | 1,102 | ||||||||||||
December 31, 2013: | ||||||||||||||||||
E*TRADE Clearing LLC(1) | $ | 144 | $ | 715 | $ | 571 | ||||||||||||
E*TRADE Securities LLC(1) | — | 261 | 261 | |||||||||||||||
G1 Execution Services, LLC(3) | 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 | E*TRADE Securities LLC was moved from under E*TRADE Bank in February 2015 and subsequently paid a dividend of $434 million to the parent company. | |||||||||||||||||
-3 | 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 December 31, 2014 and 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 | ||||||||||||||
December 31, 2014: | ||||||||||||||||||
Total capital | $ | 4,772 | 26.93 | % | $ | 1,772 | 10 | % | $ | 3,000 | ||||||||
Tier 1 capital | $ | 4,548 | 25.67 | % | $ | 1,063 | 6 | % | $ | 3,485 | ||||||||
Tier 1 leverage | $ | 4,548 | 10.61 | % | $ | 2,143 | 5 | % | $ | 2,405 | ||||||||
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 | ||||||||
Lease_Arrangements_Tables
Lease Arrangements (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Leases [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments and sublease proceeds under these leases with initial or remaining terms in excess of one year, including leases involved in facility restructurings, are as follows (dollars in millions): | |||
Operating Lease | ||||
Commitments | ||||
Years ending December 31, | ||||
2015 | $ | 25 | ||
2016 | 25 | |||
2017 | 24 | |||
2018 | 21 | |||
2019 | 19 | |||
Thereafter | 31 | |||
Total future minimum lease payments | $ | 145 | ||
Sublease proceeds | (4 | ) | ||
Net lease commitments | $ | 141 | ||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 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): | |||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
Net operating interest income | $ | 632 | $ | 455 | $ | 1 | $ | 1,088 | ||||||||
Total non-interest income | 683 | 43 | — | 726 | ||||||||||||
Total net revenue | 1,315 | 498 | 1 | 1,814 | ||||||||||||
Provision for loan losses | — | 36 | — | 36 | ||||||||||||
Total operating expense | 766 | 148 | 231 | 1,145 | ||||||||||||
Income (loss) before other income (expense) and income taxes | 549 | 314 | (230 | ) | 633 | |||||||||||
Total other income (expense) | — | — | (181 | ) | (181 | ) | ||||||||||
Income (loss) before income taxes | $ | 549 | $ | 314 | $ | (411 | ) | $ | 452 | |||||||
Income tax expense | 159 | |||||||||||||||
Net income | $ | 293 | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
Net operating interest income | $ | 540 | $ | 442 | $ | — | $ | 982 | ||||||||
Total non-interest income | 677 | 64 | — | 741 | ||||||||||||
Total net revenue | 1,217 | 506 | — | 1,723 | ||||||||||||
Provision for loan losses | — | 143 | — | 143 | ||||||||||||
Total operating expense | 883 | 179 | 213 | 1,275 | ||||||||||||
Income (loss) before other income (expense) and income taxes | 334 | 184 | (213 | ) | 305 | |||||||||||
Total other income (expense) | — | — | (110 | ) | (110 | ) | ||||||||||
Income (loss) before income taxes | $ | 334 | $ | 184 | $ | (323 | ) | $ | 195 | |||||||
Income tax expense | 109 | |||||||||||||||
Net income | $ | 86 | ||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
Net operating interest income | $ | 641 | $ | 444 | $ | — | $ | 1,085 | ||||||||
Total non-interest income | 622 | 193 | — | 815 | ||||||||||||
Total net revenue | 1,263 | 637 | — | 1,900 | ||||||||||||
Provision for loan losses | — | 355 | — | 355 | ||||||||||||
Total operating expense | 769 | 220 | 173 | 1,162 | ||||||||||||
Income (loss) before other income (expense) and income taxes | 494 | 62 | (173 | ) | 383 | |||||||||||
Total other income (expense) | — | — | (514 | ) | (514 | ) | ||||||||||
Income (loss) before income taxes | $ | 494 | $ | 62 | $ | (687 | ) | $ | (131 | ) | ||||||
Income tax (benefit) | (18 | ) | ||||||||||||||
Net loss | $ | (113 | ) | |||||||||||||
Reconciliation of Assets from Segment to Consolidated | Segment Assets | |||||||||||||||
Trading and | Balance Sheet | Corporate/ | Total | |||||||||||||
Investing | Management | Other | ||||||||||||||
As of December 31, 2014 | $ | 12,032 | $ | 33,075 | $ | 423 | $ | 45,530 | ||||||||
As of December 31, 2013 | $ | 10,820 | $ | 34,784 | $ | 676 | $ | 46,280 | ||||||||
As of December 31, 2012 | $ | 9,505 | $ | 37,306 | $ | 576 | $ | 47,387 | ||||||||
Condensed_Financial_Informatio1
Condensed Financial Information (Parent Company Only) (Tables) (Parent Company [Member]) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Parent Company [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Condensed Statement of Comprehensive Income [Table Text Block] | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Dividends from subsidiaries | $ | 311 | $ | 193 | $ | 99 | ||||||
Other revenues | 333 | 281 | 270 | |||||||||
Total net revenue | 644 | 474 | 369 | |||||||||
Total operating expense | 421 | 359 | 339 | |||||||||
Income before other income (expense), income tax benefit, and equity in income of consolidated subsidiaries | 223 | 115 | 30 | |||||||||
Total other income (expense) | (166 | ) | (108 | ) | (434 | ) | ||||||
Income (loss) before income tax benefit and equity in income of consolidated subsidiaries | 57 | 7 | (404 | ) | ||||||||
Income tax benefit | (88 | ) | (76 | ) | (188 | ) | ||||||
Equity in undistributed income of subsidiaries | 148 | 3 | 103 | |||||||||
Net income (loss) | 293 | 86 | (113 | ) | ||||||||
Other comprehensive income (loss) | 204 | (143 | ) | 77 | ||||||||
Comprehensive income (loss) | $ | 497 | $ | (57 | ) | $ | (36 | ) | ||||
Condensed Balance Sheet [Table Text Block] | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
ASSETS | ||||||||||||
Cash and equivalents | $ | 220 | $ | 406 | ||||||||
Property and equipment, net | 165 | 137 | ||||||||||
Investment in consolidated subsidiaries | 5,763 | 5,445 | ||||||||||
Receivable from subsidiaries | 31 | 36 | ||||||||||
Other assets | 745 | 710 | ||||||||||
Total assets | $ | 6,924 | $ | 6,734 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Corporate debt | $ | 1,366 | $ | 1,768 | ||||||||
Other liabilities | 183 | 110 | ||||||||||
Total liabilities | 1,549 | 1,878 | ||||||||||
Total shareholders’ equity | 5,375 | 4,856 | ||||||||||
Total liabilities and shareholders’ equity | $ | 6,924 | $ | 6,734 | ||||||||
Condensed Cash Flow Statement [Table Text Block] | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | 293 | $ | 86 | $ | (113 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 38 | 40 | 50 | |||||||||
Equity in undistributed income from subsidiaries | (148 | ) | (3 | ) | (103 | ) | ||||||
Losses on early extinguishment of debt | 6 | — | 137 | |||||||||
Other | (44 | ) | (15 | ) | 45 | |||||||
Net effect of decrease in other assets | 19 | 15 | 23 | |||||||||
Net effect of decrease in other liabilities | (3 | ) | (60 | ) | (178 | ) | ||||||
Net cash provided by (used in) operating activities | 161 | 63 | (139 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures for property and equipment | (62 | ) | (24 | ) | (27 | ) | ||||||
Proceeds from sale of subsidiary | 76 | — | — | |||||||||
Cash contributions to subsidiaries | (29 | ) | (39 | ) | (26 | ) | ||||||
Other | — | 4 | 3 | |||||||||
Net cash used in investing activities | (15 | ) | (59 | ) | (50 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net proceeds from issuance of senior notes | 540 | — | 1,305 | |||||||||
Payments on senior and springing lien notes | (940 | ) | — | (1,174 | ) | |||||||
Other | 68 | 2 | (21 | ) | ||||||||
Net cash provided by financing activities | (332 | ) | 2 | 110 | ||||||||
(Decrease) increase in cash and equivalents | (186 | ) | 6 | (79 | ) | |||||||
Cash and equivalents, beginning of period | 406 | 400 | 479 | |||||||||
Cash and equivalents, end of period | $ | 220 | $ | 406 | $ | 400 | ||||||
Quarterly_Data_Unaudited_Table
Quarterly Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | The information presented below reflects all adjustments, which, in the opinion of management, are of a normal and recurring nature necessary to present fairly the results of operations for the quarterly periods presented (dollars in millions, except per share amounts): | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||||||||
Total net revenue | $ | 475 | $ | 438 | $ | 440 | $ | 461 | $ | 420 | $ | 440 | $ | 417 | $ | 446 | ||||||||||||||||
Net income (loss) | $ | 97 | $ | 69 | $ | 86 | $ | 41 | $ | 35 | $ | (54 | ) | $ | 47 | $ | 58 | |||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.34 | $ | 0.24 | $ | 0.3 | $ | 0.14 | $ | 0.12 | $ | (0.19 | ) | $ | 0.17 | $ | 0.2 | |||||||||||||||
Diluted | $ | 0.33 | $ | 0.24 | $ | 0.29 | $ | 0.14 | $ | 0.12 | $ | (0.19 | ) | $ | 0.16 | $ | 0.2 | |||||||||||||||
Organization_Basis_of_Presenta2
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $) | 0 Months Ended | 12 Months Ended | 41 Months Ended | ||||
Feb. 10, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-10 | 31-May-09 | Dec. 31, 2005 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||
Proceeds from sale of G1 Execution Services, Inc. | $76,000,000 | $76,000,000 | $0 | $0 | |||
Cash Equivalents [Abstract] | |||||||
Overnight Cash, Federal Reserve | 900,000,000 | 1,000,000,000 | |||||
Margin Receivables [Abstract] | |||||||
Margin receivables securities pledged as collateral | 10,800,000,000 | 9,100,000,000 | |||||
Margin receivable securities sold or repledged | 2,900,000,000 | 1,900,000,000 | |||||
TDRs [Abstract] | |||||||
Percentage of LTV, For Assigning Higher Level Of Risk, Greater Than | 110.00% | ||||||
Percentage of CLTV, For Assigning Higher Level Of Risk | 125.00% | ||||||
Credit Score For Assigning Higher Level Of Risk, Less Than | 600 | ||||||
Number of consecutive payments for modified loans to be performing | 6 | ||||||
Period For Bankruptcy Loans To Be Classified As Nonperforming | 60 days | ||||||
Nonperforming Loans [Abstract] | |||||||
Period past due real estate secured loans place on nonaccrual status and classified as nonperforming | 90 days | ||||||
Period nonperforming loans return to accrual status, less than | 90 days | ||||||
Number of consecutive payments for modified loans to be performing | 6 | ||||||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||||
Allowance For Credit Losses, Qualitative Component | 37,000,000 | 62,000,000 | |||||
Delinquent period real estate secured loans are charged off | 180 days | ||||||
Delinquent period consumer loans are charged off | 120 days | ||||||
Property, Plant and Equipment [Line Items] | |||||||
Sale Leaseback Transaction, Net Proceeds, Financing Activities | 56,000,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 700,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition, Options | 1 month 6 days | ||||||
Number of common shares a restricted stock unit can be converted into | 1 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 3,300,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 31,000,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition, Equity Instruments Other Than Options | 1 year 7 months 6 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 34,000,000 | 19,000,000 | 10,000,000 | ||||
Share-based compensation | 24,000,000 | 20,000,000 | 21,000,000 | ||||
2005 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,200,000 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award, Maximum Number Of Shares Authorized Awarded Subsequently Canceled | 3,900,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 12,500,000 | 3,000,000 | |||||
Share Based Compensation Arrangement By Share Based Payment Award, Number Of Shares Authorized Unissued | 7,200,000 | ||||||
Restricted stock awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||
Building [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 35 years | ||||||
Software Development [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 4 years | ||||||
One- To Four-Family [Member] | |||||||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||||
Loans and Leases Receivable, Ratio of Class of Financing Receivable to Total Loans Receivable | 48.00% | ||||||
Home Equity [Member] | |||||||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||||
Loans and Leases Receivable, Ratio of Class of Financing Receivable to Total Loans Receivable | 45.00% | ||||||
Consumer And Other [Member] | |||||||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||||
Loans and Leases Receivable, Ratio of Class of Financing Receivable to Total Loans Receivable | 7.00% | ||||||
Allowance For Credit Losses, Qualitative Component | 1,000,000 | 4,000,000 | |||||
Minimum [Member] | Employee stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | ||||||
Minimum [Member] | Restricted stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Minimum [Member] | Property And Equipment [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $1,000,000 | ||||||
Maximum [Member] | Employee stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||
Maximum [Member] | Restricted stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||
Maximum [Member] | Property And Equipment [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 7 years | ||||||
BNY ConvergEx Group, LLC [Member] | Maximum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transactions, Expenses From Transactions With Related Party, Percentage Of Operating Expenses | 1.00% | 1.00% | 1.00% |
Disposition_Details
Disposition (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Feb. 10, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Proceeds from sale of G1 Execution Services, Inc. | $76,000,000 | $76,000,000 | $0 | $0 |
Gain on Disposition of Business | 4,000,000 | |||
Assets: | ||||
Cash and equivalents | 11,000,000 | |||
Trading securities | 0 | 105,000,000 | ||
Property and equipment, net | 2,000,000 | |||
Other intangibles, net | 21,000,000 | |||
Other assets | 38,000,000 | |||
Total assets | 0 | 177,000,000 | ||
Liabilities: | ||||
Other liabilities | 107,000,000 | |||
Total liabilities | $0 | $107,000,000 |
Operating_Interest_Income_and_2
Operating Interest Income and Operating Interest Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating interest income: | |||
Loans | $297 | $395 | $496 |
Available-for-sale securities | 288 | 279 | 360 |
Held-to-maturity securities | 328 | 255 | 237 |
Margin receivables | 264 | 224 | 216 |
Securities borrowed and other | 116 | 67 | 62 |
Total operating interest income | 1,293 | 1,220 | 1,371 |
Operating interest expense: | |||
Securities sold under agreements to repurchase | -123 | -148 | -158 |
FHLB advances and other borrowings | -65 | -68 | -93 |
Deposits | -8 | -13 | -24 |
Customer payables and other | -9 | -9 | -11 |
Total operating interest expense | -205 | -238 | -286 |
Net operating interest income | 1,088 | 982 | 1,085 |
Hedging Impact On Net Operating Interest Income [Abstract] | |||
Hedging Income (Expense), Operating Interest Income | -31 | -16 | -10 |
Hedging Expense (Income) Operating Interest Expense | $132 | $153 | $142 |
Fair_Value_Disclosures_Details
Fair Value Disclosures (Details - Inputs) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Impairment of goodwill | $142,000,000 | $0 | $142,000,000 | $0 |
Agency mortgage-backed securities [Member] | Weighted Average [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Coupon Rate | 3.10% | |||
Agency CMOs [Member] | Weighted Average [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Coupon Rate | 3.08% | |||
Loans Receivable [Member] | One- To Four-Family [Member] | Weighted Average [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Appraised Value | 378,700 | |||
Loans Receivable [Member] | One- To Four-Family [Member] | Maximum [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Appraised Value | 1,800,000 | |||
Loans Receivable [Member] | One- To Four-Family [Member] | Minimum [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Appraised Value | 37,000 | |||
Loans Receivable [Member] | Home Equity [Member] | Weighted Average [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Appraised Value | 280,400 | |||
Loans Receivable [Member] | Home Equity [Member] | Maximum [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Appraised Value | 1,190,000 | |||
Loans Receivable [Member] | Home Equity [Member] | Minimum [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Appraised Value | 9,000 | |||
Real Estate Owned [Member] | Weighted Average [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Appraised Value | 342,800 | |||
Real Estate Owned [Member] | Maximum [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Appraised Value | 1,950,000 | |||
Real Estate Owned [Member] | Minimum [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Appraised Value | $5,000 |
Fair_Value_Disclosures_Details1
Fair Value Disclosures (Details - Recurring and Nonrecurring) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | $12,388,000,000 | $13,592,000,000 | ||
Held-for-sale assets - trading securities | 0 | 105,000,000 | ||
Held-for-sale liabilities - securities sold, not yet purchased | 0 | |||
Assets measured at fair value on recurring basis percentage of total assets | 27.00% | 30.00% | ||
Liabilities measured at fair value on recurring basis percentage of total liabilities | 1.00% | |||
Liabilities measured at fair value level 3 recurring percentage of total liabilities | 0.00% | |||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | ||||
Losses on goodwill measured at fair value | 142,000,000 | 0 | 142,000,000 | 0 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis (Textuals) [Abstract] | ||||
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 | 0 | 0 | |
Fair value, assets, Level 2 to Level 1 transfers, amount | 0 | 0 | 0 | |
Fair value, liabilities, Level 1 to Level 2 transfers, amount | 0 | 0 | 0 | |
Fair value, liabilities, Level 2 to Level 1 transfers, amount | 0 | 0 | 0 | |
Less than [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Liabilities measured at fair value on recurring basis percentage of total liabilities | 1.00% | |||
Assets measured at fair value level 3 recurring percentage of total assets | 1.00% | |||
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 12,388,000,000 | 13,592,000,000 | ||
Derivative assets | 24,000,000 | 107,000,000 | ||
Deposits with clearing organizations | 53,000,000 | |||
Held-for-sale assets - trading securities | 105,000,000 | |||
Total other assets measured at fair value on a recurring basis | 265,000,000 | |||
Total assets measured at fair value on a recurring basis | 12,412,000,000 | 13,857,000,000 | ||
Derivative liabilities | 66,000,000 | 169,000,000 | ||
Held-for-sale liabilities - securities sold, not yet purchased | 95,000,000 | |||
Total liabilities measured at fair value on a recurring basis | 66,000,000 | 264,000,000 | ||
Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total loans receivable | 78,000,000 | 292,000,000 | ||
REO | 38,000,000 | 47,000,000 | ||
Total Assets Measured at Fair Value On A Nonrecurring Basis | 116,000,000 | 339,000,000 | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 33,000,000 | |||
Deposits with clearing organizations | 53,000,000 | |||
Held-for-sale assets - trading securities | 104,000,000 | |||
Total other assets measured at fair value on a recurring basis | 157,000,000 | |||
Total assets measured at fair value on a recurring basis | 33,000,000 | 157,000,000 | ||
Held-for-sale liabilities - securities sold, not yet purchased | 94,000,000 | |||
Total liabilities measured at fair value on a recurring basis | 94,000,000 | |||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 12,355,000,000 | 13,578,000,000 | ||
Derivative assets | 24,000,000 | 107,000,000 | ||
Held-for-sale assets - trading securities | 1,000,000 | |||
Total other assets measured at fair value on a recurring basis | 108,000,000 | |||
Total assets measured at fair value on a recurring basis | 12,379,000,000 | 13,686,000,000 | ||
Derivative liabilities | 66,000,000 | 169,000,000 | ||
Held-for-sale liabilities - securities sold, not yet purchased | 1,000,000 | |||
Total liabilities measured at fair value on a recurring basis | 66,000,000 | 170,000,000 | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 14,000,000 | |||
Total assets measured at fair value on a recurring basis | 14,000,000 | |||
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total loans receivable | 78,000,000 | 292,000,000 | ||
REO | 38,000,000 | 47,000,000 | ||
Total Assets Measured at Fair Value On A Nonrecurring Basis | 116,000,000 | 339,000,000 | ||
Loans Receivable [Member] | ||||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | ||||
(Gains) losses measured at fair value | 40,000,000 | 98,000,000 | 485,000,000 | |
Real Estate Owned [Member] | ||||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | ||||
(Gains) losses measured at fair value | -2,000,000 | -1,000,000 | 12,000,000 | |
One- To Four-Family [Member] | Loans Receivable [Member] | ||||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | ||||
(Gains) losses measured at fair value | 10,000,000 | 40,000,000 | 193,000,000 | |
One- To Four-Family [Member] | Loans Receivable [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total loans receivable | 46,000,000 | 246,000,000 | ||
One- To Four-Family [Member] | Loans Receivable [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total loans receivable | 46,000,000 | 246,000,000 | ||
Home Equity [Member] | Loans Receivable [Member] | ||||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | ||||
(Gains) losses measured at fair value | 30,000,000 | 58,000,000 | 292,000,000 | |
Home Equity [Member] | Loans Receivable [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total loans receivable | 32,000,000 | 46,000,000 | ||
Home Equity [Member] | Loans Receivable [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total loans receivable | 32,000,000 | 46,000,000 | ||
Debt Securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 12,355,000,000 | 13,592,000,000 | ||
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 12,355,000,000 | 13,592,000,000 | ||
Debt Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 12,355,000,000 | 13,578,000,000 | ||
Debt Securities [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 14,000,000 | |||
Residential Mortgage Backed Securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 12,250,000,000 | |||
Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 12,250,000,000 | |||
Residential Mortgage Backed Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 12,236,000,000 | |||
Residential Mortgage Backed Securities [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 14,000,000 | |||
Agency Residential Mortgage-Backed Securities and CMOs [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 11,164,000,000 | 12,236,000,000 | ||
Agency Residential Mortgage-Backed Securities and CMOs [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 11,164,000,000 | 12,236,000,000 | ||
Agency Residential Mortgage-Backed Securities and CMOs [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 11,164,000,000 | 12,236,000,000 | ||
Non-agency CMOs [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 14,000,000 | |||
Non-agency CMOs [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 14,000,000 | |||
Non-agency CMOs [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 14,000,000 | |||
Agency Debentures [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 648,000,000 | 466,000,000 | ||
Agency Debentures [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 648,000,000 | 466,000,000 | ||
Agency Debentures [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 648,000,000 | 466,000,000 | ||
Agency Debt Securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 499,000,000 | 831,000,000 | ||
Agency Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 499,000,000 | 831,000,000 | ||
Agency Debt Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 499,000,000 | 831,000,000 | ||
Municipal Bonds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 40,000,000 | 40,000,000 | ||
Municipal Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 40,000,000 | 40,000,000 | ||
Municipal Bonds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 40,000,000 | 40,000,000 | ||
Corporate Bonds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 4,000,000 | 5,000,000 | ||
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 4,000,000 | 5,000,000 | ||
Corporate Bonds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 4,000,000 | 5,000,000 | ||
Equity Securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 33,000,000 | |||
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 33,000,000 | |||
Equity Securities [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | $33,000,000 |
Fair_Value_Disclosures_Details2
Fair Value Disclosures (Details - Level 3) (Available-for-sale Securities [Member], Non-agency CMOs [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Available-for-sale Securities [Member] | Non-agency CMOs [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance, beginning of period | $14 | $49 | $97 |
Gains (losses) recognized in earnings | 6 | -3 | -13 |
Net gains recognized in other comprehensive income | 3 | 5 | 18 |
Sales | -23 | -35 | -68 |
Settlements | 0 | -2 | -23 |
Transfers in to Level 3 | 211 | ||
Transfers out of Level 3 | -173 | ||
Balance, end of period | $0 | $14 | $49 |
Fair_Value_Disclosures_Details3
Fair Value Disclosures (Details - FV of Financial Instruments) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Cash and equivalents | $1,783 | $1,838 | $2,762 | $2,100 |
Cash required to be segregated under federal or other regulations | 555 | 1,066 | ||
Total held-to-maturity securities | 12,248 | 10,181 | ||
Margin Receivables | 7,675 | 6,353 | ||
Total loans receivable, net | 5,979 | 8,123 | ||
Investment in FHLB stock | 88 | 61 | ||
Deposits paid for securities borrowed | 474 | 536 | ||
Deposits | 24,890 | 25,971 | ||
Securities sold under agreements to repurchase | 3,672 | 4,543 | ||
Customer Payables | 6,455 | 6,310 | ||
FHLB advances and other borrowings | 1,299 | 1,279 | ||
Corporate debt | 1,366 | 1,768 | ||
Deposits received for securities loaned | 1,649 | 1,050 | ||
Allowance for loan losses | 404 | 453 | 481 | 823 |
One- To Four-Family [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Allowance for loan losses | 27 | 102 | 184 | 314 |
Home Equity [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Allowance for loan losses | 367 | 326 | 257 | 463 |
Consumer And Other [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Allowance for loan losses | 10 | 25 | 40 | 46 |
Agency Residential Mortgage-Backed Securities and CMOs [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 9,793 | 8,359 | ||
Agency Debentures [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 164 | 164 | ||
Agency Debt Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 2,281 | 1,658 | ||
Other Non-Agency Debt Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 10 | |||
Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Cash and equivalents | 1,783 | 1,838 | ||
Cash required to be segregated under federal or other regulations | 555 | 1,066 | ||
Total held-to-maturity securities | 12,248 | 10,181 | ||
Margin Receivables | 7,675 | 6,353 | ||
Total loans receivable, net | 5,979 | 8,123 | ||
Investment in FHLB stock | 88 | 61 | ||
Deposits paid for securities borrowed | 474 | 536 | ||
Deposits | 24,890 | 25,971 | ||
Securities sold under agreements to repurchase | 3,672 | 4,543 | ||
Customer Payables | 6,455 | 6,310 | ||
FHLB advances and other borrowings | 1,299 | 1,279 | ||
Corporate debt | 1,366 | 1,768 | ||
Deposits received for securities loaned | 1,649 | 1,050 | ||
Carrying Value [Member] | One- To Four-Family [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 3,053 | 4,392 | ||
Carrying Value [Member] | Home Equity [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 2,475 | 3,148 | ||
Carrying Value [Member] | Consumer And Other [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 451 | 583 | ||
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 | 9,793 | 8,359 | ||
Carrying Value [Member] | Agency Debentures [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 164 | 164 | ||
Carrying Value [Member] | Agency Debt Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 2,281 | 1,658 | ||
Carrying Value [Member] | Other Non-Agency Debt Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 10 | |||
Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Cash and equivalents | 1,783 | 1,838 | ||
Cash required to be segregated under federal or other regulations | 555 | 1,066 | ||
Total held-to-maturity securities | 12,476 | 10,092 | ||
Margin Receivables | 7,675 | 6,353 | ||
Total loans receivable, net | 5,465 | 7,208 | ||
Investment in FHLB stock | 88 | 61 | ||
Deposits paid for securities borrowed | 474 | 536 | ||
Deposits | 24,890 | 25,971 | ||
Securities sold under agreements to repurchase | 3,681 | 4,571 | ||
Customer Payables | 6,455 | 6,310 | ||
FHLB advances and other borrowings | 1,174 | 1,149 | ||
Corporate debt | 1,491 | 1,951 | ||
Deposits received for securities loaned | 1,649 | 1,050 | ||
Fair Value [Member] | One- To Four-Family [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 2,742 | 3,790 | ||
Fair Value [Member] | Home Equity [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 2,274 | 2,822 | ||
Fair Value [Member] | Consumer And Other [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 449 | 596 | ||
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 | 9,971 | 8,293 | ||
Fair Value [Member] | Agency Debentures [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 166 | 168 | ||
Fair Value [Member] | Agency Debt Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 2,329 | 1,631 | ||
Fair Value [Member] | Other Non-Agency Debt Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 10 | |||
Fair Value [Member] | Level 1 [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Cash and equivalents | 1,783 | 1,838 | ||
Cash required to be segregated under federal or other regulations | 555 | 1,066 | ||
Fair Value [Member] | Level 2 [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 12,466 | 10,092 | ||
Margin Receivables | 7,675 | 6,353 | ||
Deposits paid for securities borrowed | 474 | 536 | ||
Deposits | 24,890 | 25,971 | ||
Securities sold under agreements to repurchase | 3,681 | 4,571 | ||
Customer Payables | 6,455 | 6,310 | ||
FHLB advances and other borrowings | 922 | 924 | ||
Corporate debt | 1,491 | 1,951 | ||
Deposits received for securities loaned | 1,649 | 1,050 | ||
Fair Value [Member] | Level 2 [Member] | Agency Residential Mortgage-Backed Securities and CMOs [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 9,971 | 8,293 | ||
Fair Value [Member] | Level 2 [Member] | Agency Debentures [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 166 | 168 | ||
Fair Value [Member] | Level 2 [Member] | Agency Debt Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 2,329 | 1,631 | ||
Fair Value [Member] | Level 3 [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 10 | |||
Total loans receivable, net | 5,465 | 7,208 | ||
Investment in FHLB stock | 88 | 61 | ||
FHLB advances and other borrowings | 252 | 225 | ||
Fair Value [Member] | Level 3 [Member] | One- To Four-Family [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 2,742 | 3,790 | ||
Fair Value [Member] | Level 3 [Member] | Home Equity [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 2,274 | 2,822 | ||
Fair Value [Member] | Level 3 [Member] | Consumer And Other [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 449 | 596 | ||
Fair Value [Member] | Level 3 [Member] | Other Non-Agency Debt Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 10 | |||
Unfunded Commitments to Extend Credit [Member] | ||||
Supply Commitment [Line Items] | ||||
Unfunded Commitments To Extend Credit | $169 |
Offsetting_Assets_and_Liabilit2
Offsetting Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Offsetting Footnotes [Abstract] | ||
Interest Payable Excluded From Gross Amounts of Derivatives | $7,000,000 | $19,000,000 |
Securities Borrowed, Transacted Through Clearing Company | 278,000,000 | 415,000,000 |
Securities Loaned, Transacted Through Clearing Company | 1,100,000,000 | 682,000,000 |
Derivative Asset, Not Subject to Master Netting Arrangement | 0 | 15,000,000 |
Derivative Liability, Not Subject to Master Netting Arrangement | 36,000,000 | 1,000,000 |
Offsetting Assets [Abstract] | ||
Securities Borrowed, Gross | 474,000,000 | 536,000,000 |
Securities Borrowed, Liability | 0 | 0 |
Securities Borrowed | 474,000,000 | 536,000,000 |
Securities Borrowed, Financial Instruments, Not Offset | -188,000,000 | -247,000,000 |
Securities Borrowed, Collateral Received | -267,000,000 | -282,000,000 |
Securities Borrowed, Amount Offset Against Collateral | 19,000,000 | 7,000,000 |
Derivative Asset, Fair Value, Gross Asset | 24,000,000 | 92,000,000 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset | 24,000,000 | 92,000,000 |
Derivative Asset, Financial Instruments, Not Offset | -15,000,000 | -48,000,000 |
Derivative Asset, Collateral Received | -3,000,000 | -12,000,000 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 6,000,000 | 32,000,000 |
Derivative Asset, Securities Borrowed, Gross | 498,000,000 | 628,000,000 |
Derivative Asset, Securities Borrowed, Liability | 0 | 0 |
Derivative Asset, Securities Borrowed | 498,000,000 | 628,000,000 |
Derivative Asset, Securities Borrowed, Financial Instruments Not Offset | -203,000,000 | -295,000,000 |
Derivative Asset, Securities Borrowed, Collateral Received | -270,000,000 | -294,000,000 |
Derivative Asset, Securities Borrowed Net | 25,000,000 | 39,000,000 |
Offsetting Liabilities [Abstract] | ||
Securities Sold under Agreements to Repurchase, Gross | 3,672,000,000 | 4,543,000,000 |
Securities Sold under Agreements to Repurchase, Asset | 0 | 0 |
Securities sold under agreements to repurchase | 3,672,000,000 | 4,543,000,000 |
Securities Sold under Agreements to Repurchase, Financial Instruments Not Offset | 0 | 0 |
Securities Sold under Agreements to Repurchase, Collateral Pledged | -3,671,000,000 | -4,537,000,000 |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 1,000,000 | 6,000,000 |
Securities Loaned, Gross | 1,649,000,000 | 1,050,000,000 |
Securities Loaned, Asset | 0 | 0 |
Securities Loaned | 1,649,000,000 | 1,050,000,000 |
Securities Loaned, Financial Instruments, Not Offset | -188,000,000 | -247,000,000 |
Securities Loaned, Collateral Pledged | -1,332,000,000 | -740,000,000 |
Securities Loaned, Amount Offset Against Collateral | 129,000,000 | 63,000,000 |
Derivative Liability, Fair Value, Gross Liability | 30,000,000 | 168,000,000 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability | 30,000,000 | 168,000,000 |
Derivative Liability, Financial Instruments, Not Offset | -15,000,000 | -48,000,000 |
Derivative Liability, Collateral Pledged | -15,000,000 | -120,000,000 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Gross | 5,351,000,000 | 5,761,000,000 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Asset | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned | 5,351,000,000 | 5,761,000,000 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Financial Instruments Not Offset | -203,000,000 | -295,000,000 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Collateral Pledged | -5,018,000,000 | -5,397,000,000 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Amount Offset Against Collateral | $130,000,000 | $69,000,000 |
AvailableforSale_Securities_De
Available-for-Sale Securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $12,341 | $13,922 |
Available-for-sale securities, gross unrealized gains | 154 | 76 |
Available-for-sale securities, gross unrealized losses | -107 | -406 |
Available-for-sale securities, fair value | 12,388 | 13,592 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 12,308 | 13,922 |
Available-for-sale securities, gross unrealized gains | 154 | 76 |
Available-for-sale securities, gross unrealized losses | -107 | -406 |
Available-for-sale securities, fair value | 12,355 | 13,592 |
Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale 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 Available-for-sale 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 Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 11,156 | 12,505 |
Available-for-sale securities, gross unrealized gains | 113 | 66 |
Available-for-sale securities, gross unrealized losses | -105 | -335 |
Available-for-sale securities, fair value | 11,164 | 12,236 |
Agency Debentures [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 620 | 520 |
Available-for-sale securities, gross unrealized gains | 28 | |
Available-for-sale securities, gross unrealized losses | 0 | -54 |
Available-for-sale securities, fair value | 648 | 466 |
Agency Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 487 | 832 |
Available-for-sale securities, gross unrealized gains | 12 | 8 |
Available-for-sale securities, gross unrealized losses | 0 | -9 |
Available-for-sale securities, fair value | 499 | 831 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 40 | 42 |
Available-for-sale securities, gross unrealized gains | 1 | |
Available-for-sale securities, gross unrealized losses | -1 | -2 |
Available-for-sale securities, fair value | 40 | 40 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale 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 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 33 | |
Available-for-sale securities, fair value | $33 |
HeldtoMaturity_Securities_Deta
Held-to-Maturity Securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | $12,248 | $10,181 |
Held-to-maturity securities, gross unrecognized gains | 273 | 116 |
Held-to-maturity securities, gross unrecognized losses | -45 | -205 |
Held-to-maturity securities, fair value | 12,476 | 10,092 |
Agency Residential Mortgage-Backed Securities and CMOs [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 9,793 | 8,359 |
Held-to-maturity securities, gross unrecognized gains | 217 | 99 |
Held-to-maturity securities, gross unrecognized losses | -39 | -165 |
Held-to-maturity securities, fair value | 9,971 | 8,293 |
Agency Debentures [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 164 | 164 |
Held-to-maturity securities, gross unrecognized gains | 2 | 4 |
Held-to-maturity securities, gross unrecognized losses | 0 | |
Held-to-maturity securities, fair value | 166 | 168 |
Agency Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 2,281 | 1,658 |
Held-to-maturity securities, gross unrecognized gains | 54 | 13 |
Held-to-maturity securities, gross unrecognized losses | -6 | -40 |
Held-to-maturity securities, fair value | 2,329 | 1,631 |
Other Non-Agency Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 10 | |
Held-to-maturity securities, fair value | $10 |
AvailableforSale_and_HeldtoMat2
Available-for-Sale and Held-to-Maturity Securities (Details - Maturity) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Available-for-Sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale securities, due within next twelve months, amortized cost | $3,000,000 | |
Available-for-sale securities, due within one to five years, amortized cost | 9,000,000 | |
Available-for-sale securities, due within five to ten years, amortized cost | 842,000,000 | |
Available-for-sale securities, due after ten years, amortized cost | 11,454,000,000 | |
Available-for-sale securities, amortized cost | 12,308,000,000 | |
Available-for-sale securities, due within next twelve months, fair value | 3,000,000 | |
Available-for-sale securities, due within one to five years, fair value | 9,000,000 | |
Available-for-sale securities, due within five to ten years, fair value | 849,000,000 | |
Available-for-sale securities, due after ten years, fair value | 11,494,000,000 | |
Available-for-sale securities, fair value | 12,355,000,000 | |
Held-to-Maturity Securities, Debt Maturities [Abstract] | ||
Held-to-maturity securities, due within one year, net carrying amount | 169,000,000 | |
Held-to-maturity securities, due within one to five years, net carrying amount | 892,000,000 | |
Held-to-maturity securities, due within five to ten years, net carrying amount | 2,787,000,000 | |
Held-to-maturity securities, due after ten years, net carrying amount | 8,400,000,000 | |
Held-to-maturity securities, amortized cost | 12,248,000,000 | 10,181,000,000 |
Held-to-maturity securities, due within one year, fair value | 171,000,000 | |
Held-to-maturity securities, due within one to five years, fair value | 921,000,000 | |
Held-to-maturity securities, due within five to ten years, fair value | 2,868,000,000 | |
Held-to-maturity securities, due after ten years, fair value | 8,516,000,000 | |
Held-to-maturity securities, fair value | 12,476,000,000 | 10,092,000,000 |
Available-for-Sale Securities Pledged As Collateral (Textuals) [Abstract] | ||
Available-for-sale securities pledged to creditors with the right to sell or repledge | 1,600,000,000 | 2,100,000,000 |
Held-to-Maturity Securities Pledged As Collateral (Textuals) [Abstract] | ||
Held-to-maturity securities pledged to creditors with the right to sell or repledge | $3,100,000,000 | $3,400,000,000 |
AvailableforSale_Securities_De1
Available-for-Sale Securities (Details - OTTI) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | $406 | $7,299 |
Available-for-sale securities, twelve months or longer, fair value | 4,704 | 1,282 |
Available-for-sale securities, fair value | 5,110 | 8,581 |
Available-for-sale securities, less than twelve months, aggregate losses | -1 | -333 |
Available-for-sale securities, twelve months or longer, aggregate losses | -106 | -73 |
Available-for-sale securities, aggregate losses | -107 | -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 | 403 | 6,422 |
Available-for-sale securities, twelve months or longer, fair value | 4,674 | 1,266 |
Available-for-sale securities, fair value | 5,077 | 7,688 |
Available-for-sale securities, less than twelve months, aggregate losses | -1 | -268 |
Available-for-sale securities, twelve months or longer, aggregate losses | -104 | -67 |
Available-for-sale securities, aggregate losses | -105 | -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 | 466 | |
Available-for-sale securities, twelve months or longer, fair value | 9 | |
Available-for-sale securities, fair value | 9 | 466 |
Available-for-sale securities, less than twelve months, aggregate losses | -54 | |
Available-for-sale securities, twelve months or longer, aggregate losses | 0 | |
Available-for-sale securities, aggregate losses | 0 | -54 |
Agency Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 384 | |
Available-for-sale securities, fair value | 384 | |
Available-for-sale securities, less than twelve months, aggregate losses | -9 | |
Available-for-sale securities, aggregate losses | -9 | |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 3 | 27 |
Available-for-sale securities, twelve months or longer, fair value | 16 | |
Available-for-sale securities, fair value | 19 | 27 |
Available-for-sale securities, less than twelve months, aggregate losses | -2 | |
Available-for-sale securities, twelve months or longer, aggregate losses | -1 | |
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) |
Recovered_Sheet1
Held-to-maturity Securities (Details - OTTI) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, less than twelve months, fair value | $155 | $4,760 |
Held-to-maturity securities, twelve months or longer, fair value | 2,849 | 891 |
Held-to-maturity securities, fair value | 3,004 | 5,651 |
Held-to-maturity securities, less than twelve months, aggregate losses | -1 | -161 |
Held-to-maturity securities, twelve months or longer, aggregate losses | -44 | -44 |
Held-to-maturity securities, aggregate losses | -45 | -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 | 45 | 3,607 |
Held-to-maturity securities, twelve months or longer, fair value | 2,289 | 891 |
Held-to-maturity securities, fair value | 2,334 | 4,498 |
Held-to-maturity securities, less than twelve months, aggregate losses | 0 | -121 |
Held-to-maturity securities, twelve months or longer, aggregate losses | -39 | -44 |
Held-to-maturity securities, aggregate losses | -39 | -165 |
Agency Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, less than twelve months, fair value | 110 | 1,153 |
Held-to-maturity securities, twelve months or longer, fair value | 560 | |
Held-to-maturity securities, fair value | 670 | 1,153 |
Held-to-maturity securities, less than twelve months, aggregate losses | -1 | -40 |
Held-to-maturity securities, twelve months or longer, aggregate losses | -5 | |
Held-to-maturity securities, aggregate losses | ($6) | ($40) |
AvailableforSale_and_HeldtoMat3
Available-for-Sale and Held-to-Maturity Securities (Details - Other) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Than Temporary Impairment, Credit Losses Recognized In Earnings [Roll Forward] | |||
Credit loss balance, beginning of period | $166 | $187 | $203 |
Initial credit impairment | 1 | ||
Subsequent credit impairment | 3 | 16 | |
Debt securities sold | -14 | -24 | -33 |
Credit loss balance, end of period | 152 | 166 | 187 |
Other Than Temporary Impairment Credit Losses On Securities WrittenOff (Textuals) [Abstract] | |||
Other Than Temporary Impairment Credit Losses Recognized In Earnings Securities Factored To Zero | 123 | 121 | 114 |
Components of Gains on Loans and Securities Net [Abstract] | |||
Gains (losses) on loans, net | 4 | -1 | 1 |
Gains on securities, net: | |||
Gains on available-for-sale securities | 42 | 69 | 212 |
Losses on available-for-sale securities | 0 | -8 | -5 |
Hedge ineffectiveness | -10 | 1 | -7 |
Gains on securities, net | 32 | 62 | 200 |
Gains on loans and securities, net | 36 | 61 | 201 |
Proceeds from sale of loans | 813 | ||
One- To Four-Family [Member] | |||
Gains on securities, net: | |||
Gain on Sale of Mortgage Loans | 7 | ||
Proceeds from sale of loans | 800 | ||
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 $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loans Receivable, Net [Abstract] | ||||
One- to four-family | $3,060,000,000 | $4,475,000,000 | ||
Home equity | 2,834,000,000 | 3,454,000,000 | ||
Consumer and other | 455,000,000 | 602,000,000 | ||
Total loans receivable | 6,349,000,000 | 8,531,000,000 | ||
Unamortized premiums, net | 34,000,000 | 45,000,000 | ||
Allowance for loan losses | -404,000,000 | -453,000,000 | -481,000,000 | -823,000,000 |
Total loans receivable, net | 5,979,000,000 | 8,123,000,000 | ||
Loans Pledged Federal Home Loan Bank | 5,400,000,000 | 6,800,000,000 | ||
Loans Pledged Federal Reserve Bank | 500,000,000 | 600,000,000 | ||
Loans Evaluated For Impairment Methodology [Abstract] | ||||
Loans collectively evaluated for impairment, carrying value | 5,850,000,000 | 7,163,000,000 | ||
Loans individually evaluated for impairment (TDRs), carrying value | 533,000,000 | 1,413,000,000 | ||
Total recorded investment in loans receivable | 6,383,000,000 | 8,576,000,000 | ||
Loans collectively evaluated for impairment, allowance for loan losses | 338,000,000 | 329,000,000 | ||
Loans individually evaluated for impairment (TDRs), allowance for loan losses | 66,000,000 | 124,000,000 | ||
Allowance for loan losses | $404,000,000 | $453,000,000 | $481,000,000 | $823,000,000 |
Loans_Receivable_Net_Details_C
Loans Receivable, Net (Details - Credit Quality) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Credit Quality Indicators [Line Items] | ||
Greater Than 10% of Loans, States Other than California, Count | 0 | 0 |
CALIFORNIA | One- To Four-Family and Home Equity Benchmark [Member] | Financing Receivables, State, Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 38.00% | 40.00% |
One- To Four-Family [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 3,060,000,000 | 4,475,000,000 |
Average estimated current LTV/CLTV | 79.00% | 90.00% |
Average LTV/CLTV at loan origination | 71.00% | 72.00% |
One- To Four-Family [Member] | Minimum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Loans, Interest-Only Period | 5 years | |
Loans, Amortization Period | 20 years | |
One- To Four-Family [Member] | Maximum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Loans, Interest-Only Period | 10 years | |
Loans, Amortization Period | 25 years | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest Only Not Yet Amortizing Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 42.00% | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest only, Already Amortizing | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 58.00% | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2015 | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 5.00% | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2016 | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 16.00% | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2017 and Later | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 21.00% | |
One- To Four-Family [Member] | Interest Only Not Yet Amortizing [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 2500 Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 15.00% | |
Annual Principal Payment Threshold | 2,500 | |
One- To Four-Family [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 2500 [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 10000 Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Annual Principal Payment Threshold | 10,000 | |
One- To Four-Family [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 2500 [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 10000 Risk [Member] | Minimum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 33.33% | |
One- To Four-Family [Member] | Current Loan To Value Or Combined Loan To Value Ratio Less Then 80 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 1,757,000,000 | 1,912,000,000 |
One- To Four-Family [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 80 And 100 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 807,000,000 | 1,365,000,000 |
One- To Four-Family [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 100 And 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 311,000,000 | 711,000,000 |
One- To Four-Family [Member] | Current Loan To Value Or Combined Loan To Value Ratio Greater Then 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 185,000,000 | 487,000,000 |
One- To Four-Family [Member] | Greater Than 720 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 1,734,000,000 | 2,252,000,000 |
One- To Four-Family [Member] | Between 719 And 700 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 296,000,000 | 436,000,000 |
One- To Four-Family [Member] | Between 699 And 680 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 260,000,000 | 366,000,000 |
One- To Four-Family [Member] | Between 679 And 660 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 197,000,000 | 296,000,000 |
One- To Four-Family [Member] | Between 659 And 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 237,000,000 | 404,000,000 |
One- To Four-Family [Member] | Less Than 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 336,000,000 | 721,000,000 |
One- To Four-Family [Member] | Current FICO Score Not Available [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 49,000,000 | 95,000,000 |
Home Equity [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 2,834,000,000 | 3,454,000,000 |
Average estimated current LTV/CLTV | 92.00% | 98.00% |
Average LTV/CLTV at loan origination | 80.00% | 80.00% |
Home Equity [Member] | Minimum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Loans, Draw Period | 5 years | |
Home Equity [Member] | Maximum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Loans, Draw Period | 10 years | |
Home Equity [Member] | Interest Only Not Yet Amortizing [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 500 Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 40.00% | |
Annual Principal Payment Threshold | 500 | |
Home Equity [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 500 [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 2500 Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Annual Principal Payment Threshold | 2,500 | |
Home Equity [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 500 [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 2500 Risk [Member] | Maximum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 50.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Interest Only Not Yet Amortizing Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 85.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Interest only, Already Amortizing | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 15.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2015 | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 27.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2016 | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 44.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2017 and Later | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 14.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Balloon Loan, Percentage [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 7.00% | |
Home Equity [Member] | Home Equity Benchmark [Member] | Financing Receivables in First Lien Position, Percentage [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 15.00% | |
Home Equity [Member] | Home Equity Benchmark [Member] | Financing Receivables in the First and Second Lien Position, Percent [Member] | Maximum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 1.00% | |
Home Equity [Member] | Home Equity Benchmark [Member] | Home Equity Installment Loans, Percentage [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 19.00% | |
Home Equity [Member] | Home Equity Benchmark [Member] | Home Equity Line of Credit, Percentage [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 81.00% | |
Home Equity [Member] | Current Loan To Value Or Combined Loan To Value Ratio Less Then 80 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 1,081,000,000 | 1,142,000,000 |
Home Equity [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 80 And 100 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 755,000,000 | 866,000,000 |
Home Equity [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 100 And 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 557,000,000 | 736,000,000 |
Home Equity [Member] | Current Loan To Value Or Combined Loan To Value Ratio Greater Then 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 441,000,000 | 710,000,000 |
Home Equity [Member] | Greater Than 720 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 1,487,000,000 | 1,811,000,000 |
Home Equity [Member] | Between 719 And 700 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 292,000,000 | 343,000,000 |
Home Equity [Member] | Between 699 And 680 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 238,000,000 | 293,000,000 |
Home Equity [Member] | Between 679 And 660 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 203,000,000 | 245,000,000 |
Home Equity [Member] | Between 659 And 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 258,000,000 | 310,000,000 |
Home Equity [Member] | Less Than 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 356,000,000 | 452,000,000 |
Home Equity [Member] | Current FICO Score Not Available [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 4,000,000 | 10,000,000 |
Loans_Receivable_Net_Details_A
Loans Receivable, Net (Details - Aging) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans receivable, Current | $5,962 | $7,884 |
Loans receivable, 30 to 89 days delinquent | 155 | 271 |
Loans receivable, 90 to 179 days delinquent | 58 | 109 |
Loans receivable, 180+ days delinquent | 174 | 267 |
One- to four-family | 3,060 | 4,475 |
Home equity | 2,834 | 3,454 |
Consumer and other | 455 | 602 |
Total loans receivable | 6,349 | 8,531 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 460 | 693 |
Threshold, Period Past Due, Nonaccrual Financing Receivable | 90 days | |
Financing Receivable Recorded Investment Nonaccrual Status, Decrease | -233 | |
Loans Sold, Mortgages, Nonaccrual Status | 377 | |
Bankruptcy Loans, Performing, Recorded Investment, All | 238 | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | ||
Real Estate Acquired Through Foreclosure | 36 | 50 |
Mortgage Loans in Process of Foreclosure, Amount | 107 | 199 |
One- To Four-Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans receivable, Current | 2,813 | 3,988 |
Loans receivable, 30 to 89 days delinquent | 88 | 190 |
Loans receivable, 90 to 179 days delinquent | 28 | 70 |
Loans receivable, 180+ days delinquent | 131 | 227 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 294 | 526 |
Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans receivable, Current | 2,702 | 3,309 |
Loans receivable, 30 to 89 days delinquent | 60 | 69 |
Loans receivable, 90 to 179 days delinquent | 29 | 36 |
Loans receivable, 180+ days delinquent | 43 | 40 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 165 | 164 |
Consumer And Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans receivable, Current | 447 | 587 |
Loans receivable, 30 to 89 days delinquent | 7 | 12 |
Loans receivable, 90 to 179 days delinquent | 1 | 3 |
Loans receivable, 180+ days delinquent | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | $1 | $3 |
Loans_Receivable_Net_Details_A1
Loans Receivable, Net (Details - Allowance) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivables, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses, beginning of period | $453 | $481 | $823 |
Provision for loan losses | 36 | 143 | 355 |
Charge-offs | -126 | -231 | -758 |
Recoveries | 41 | 60 | 61 |
Charge-offs, net | -85 | -171 | -697 |
Allowance for loan losses, end of period | 404 | 453 | 481 |
Allowance For Credit Losses, Qualitative Component | 37 | 62 | |
Charge-Offs, Loans Transferred to Held-For-Sale and Subsequently Sold | 42 | ||
Repurchase Settlements | 11 | 13 | 11 |
One- To Four-Family [Member] | |||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses, beginning of period | 102 | 184 | 314 |
Provision for loan losses | -42 | -55 | 51 |
Charge-offs | -44 | -41 | -190 |
Recoveries | 11 | 14 | 9 |
Charge-offs, net | -33 | -27 | -181 |
Allowance for loan losses, end of period | 27 | 102 | 184 |
Home Equity [Member] | |||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses, beginning of period | 326 | 257 | 463 |
Provision for loan losses | 82 | 192 | 271 |
Charge-offs | -65 | -157 | -517 |
Recoveries | 24 | 34 | 40 |
Charge-offs, net | -41 | -123 | -477 |
Allowance for loan losses, end of period | 367 | 326 | 257 |
Consumer And Other [Member] | |||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses, beginning of period | 25 | 40 | 46 |
Provision for loan losses | -4 | 6 | 33 |
Charge-offs | -17 | -33 | -51 |
Recoveries | 6 | 12 | 12 |
Charge-offs, net | -11 | -21 | -39 |
Allowance for loan losses, end of period | 10 | 25 | 40 |
Allowance For Credit Losses, Qualitative Component | $1 | $4 |
Loans_Receivable_Net_Details_T
Loans Receivable, Net (Details - TDRs Accrual and Nonaccrual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Impaired [Line Items] | ||
Accrual TDRs | $248,000,000 | $950,000,000 |
Nonaccrual TDRs, Current | 162,000,000 | 149,000,000 |
Nonaccrual TDRs, 30-89 Days Delinquent | 38,000,000 | 119,000,000 |
Nonaccrual TDRs, 90-179 Days Delinquent | 18,000,000 | 51,000,000 |
Nonaccrual TDRs, 180 Plus Days Delinquent | 67,000,000 | 144,000,000 |
Recorded Investment in TDRs | 533,000,000 | 1,413,000,000 |
Proceeds from sale of loans | 813,000,000 | |
Financing Receivable, Troubled Debt Restructurings, Modifications, Total1 | 354,000,000 | 1,200,000,000 |
Financing Receivable, Troubled Debt Restructurings, Bankruptcy Notifications | 179,000,000 | 189,000,000 |
One- To Four-Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Accrual TDRs | 121,000,000 | 774,000,000 |
Nonaccrual TDRs, Current | 111,000,000 | 127,000,000 |
Nonaccrual TDRs, 30-89 Days Delinquent | 24,000,000 | 102,000,000 |
Nonaccrual TDRs, 90-179 Days Delinquent | 12,000,000 | 44,000,000 |
Nonaccrual TDRs, 180 Plus Days Delinquent | 48,000,000 | 125,000,000 |
Recorded Investment in TDRs | 316,000,000 | 1,172,000,000 |
TDR unpaid principal balance | 300,000,000 | 1,200,000,000 |
Proceeds from sale of loans | 800,000,000 | |
Home Equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Accrual TDRs | 127,000,000 | 176,000,000 |
Nonaccrual TDRs, Current | 51,000,000 | 22,000,000 |
Nonaccrual TDRs, 30-89 Days Delinquent | 14,000,000 | 17,000,000 |
Nonaccrual TDRs, 90-179 Days Delinquent | 6,000,000 | 7,000,000 |
Nonaccrual TDRs, 180 Plus Days Delinquent | 19,000,000 | 19,000,000 |
Recorded Investment in TDRs | $217,000,000 | $241,000,000 |
Loans_Receivable_Net_Details_T1
Loans Receivable, Net (Details - TDRs Average Investment and Income) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | |||
TDRs, Average Recorded Investment | $803 | $1,467 | $1,351 |
TDRs, Interest Income Recognized | 34 | 53 | 43 |
One- To Four-Family [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
TDRs, Average Recorded Investment | 576 | 1,205 | 1,054 |
TDRs, Interest Income Recognized | 16 | 33 | 31 |
Home Equity [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
TDRs, Average Recorded Investment | 227 | 262 | 297 |
TDRs, Interest Income Recognized | $18 | $20 | $12 |
Loans_Receivable_Net_Details_T2
Loans Receivable, Net (Details - TDRs Specific Valuation Allowance) (USD $) | Dec. 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 | $533 | $1,413 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 66 | 124 |
One- To Four-Family [Member] | ||
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 88 | 403 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 228 | 769 |
Recorded Investment in TDRs | 316 | 1,172 |
Impaired Financing Receivable, Related Allowance | 9 | 60 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 79 | 343 |
Impaired Financing Receivable, with No Related Allowance, Net Investment | 228 | 769 |
Impaired Financing Receivables, Net Investment, Total | 307 | 1,112 |
Home Equity [Member] | ||
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 118 | 140 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 99 | 101 |
Recorded Investment in TDRs | 217 | 241 |
Impaired Financing Receivable, Related Allowance | 57 | 64 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 61 | 76 |
Impaired Financing Receivable, with No Related Allowance, Net Investment | 99 | 101 |
Impaired Financing Receivables, Net Investment, Total | $160 | $177 |
Loans_Receivable_Net_Details_M
Loans Receivable, Net (Details - Modifications Types and Financial Impact) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
loan | loan | loan | |
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | 259 | 577 | 1,252 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Forgiven | $1 | $19 | $53 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Deferred | 0 | 5 | 37 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Re-age, Extension, and Interest Capitalization | 15 | 78 | 136 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Other Concession | 4 | 18 | 51 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Other Concessions | 15 | 25 | 29 |
Troubled Debt Restructurings - Modifications, Total | 35 | 145 | 306 |
Financial Impact, Troubled Debt Restructurings - Modifications, Principal Forgiven | 0 | 7 | 17 |
One- To Four-Family [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | 64 | 324 | 614 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Forgiven | 1 | 19 | 53 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Deferred | 0 | 5 | 37 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Re-age, Extension, and Interest Capitalization | 11 | 71 | 131 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Other Concession | 2 | 11 | 12 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Other Concessions | 6 | 18 | 19 |
Troubled Debt Restructurings - Modifications, Total | 20 | 124 | 252 |
Financial Impact, Troubled Debt Restructurings - Modifications, Principal Forgiven | 0 | 7 | 17 |
Financial Impact, Troubled Debt Restructurings - Modifications, Pre-Modification Weighted Average Interest Rate | 5.20% | 5.20% | 5.90% |
Financial Impact, Troubled Debt Restructurings - Modifications, Post-Modification Weighted Average Interest Rate | 2.60% | 2.30% | 2.30% |
Home Equity [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | 195 | 253 | 638 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Forgiven | 0 | 0 | 0 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Deferred | 0 | 0 | 0 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Re-age, Extension, and Interest Capitalization | 4 | 7 | 5 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Other Concession | 2 | 7 | 39 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Other Concessions | 9 | 7 | 10 |
Troubled Debt Restructurings - Modifications, Total | 15 | 21 | 54 |
Financial Impact, Troubled Debt Restructurings - Modifications, Principal Forgiven | $0 | $0 | $0 |
Financial Impact, Troubled Debt Restructurings - Modifications, Pre-Modification Weighted Average Interest Rate | 5.40% | 4.70% | 4.40% |
Financial Impact, Troubled Debt Restructurings - Modifications, Post-Modification Weighted Average Interest Rate | 2.40% | 1.90% | 1.50% |
Loans_Receivable_Net_Details_M1
Loans Receivable, Net (Details - Modifications Subsequent Defaults) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
loan | loan | loan | |
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | 82 | 211 | 627 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | $12 | $56 | $118 |
One- To Four-Family [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | 27 | 142 | 260 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | 9 | 53 | 100 |
Troubled Debt Restructurings - Modifications that Subsequently Defaulted that were Classified as Current at Period End | 1 | 18 | 28 |
Home Equity [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | 55 | 69 | 367 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | 3 | 3 | 18 |
Troubled Debt Restructurings - Modifications that Subsequently Defaulted that were Classified as Current at Period End | $1 | $1 | $6 |
Accounting_for_Derivative_Inst2
Accounting for Derivative Instruments and Hedging Activities (Details - Fair Value of Derivatives) (Designated as Hedging Instrument [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $3,069 | $4,919 |
Derivative Asset | 24 | 107 |
Derivative Liability | -66 | -169 |
Derivative Asset (Liability), Net | -42 | -62 |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,000 | 3,305 |
Derivative Asset | 23 | 27 |
Derivative Liability | -24 | -168 |
Derivative Asset (Liability), Net | -1 | -141 |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,069 | 1,614 |
Derivative Asset | 1 | 80 |
Derivative Liability | -42 | -1 |
Derivative Asset (Liability), Net | ($41) | $79 |
Accounting_for_Derivative_Inst3
Accounting for Derivative Instruments and Hedging Activities (Details - Cash Flow Hedge) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | 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 | ($39) | [1] | $67 | [1] | ($72) | [1] |
Cash Flow Hedging [Member] | ||||||
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 | -39 | 67 | -72 | |||
Losses reclassified from AOCI into earnings (effective portion), net of tax | -76 | -87 | -78 | |||
Cash flow hedge ineffectiveness gains | 0 | 1 | 0 | |||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | -101 | |||||
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge | 8 years | |||||
Accumulated other comprehensive loss balance (net of tax) related to: | ||||||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | -261 | -298 | ||||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | ||||||
Accumulated Other Comprehensive Loss, before Tax | -422 | -478 | ||||
Tax benefit | 161 | 180 | ||||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | -261 | -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 | -341 | -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 | -81 | -99 | ||||
Cash Flow Hedging [Member] | Discontinued Hedges | ||||||
Accumulated other comprehensive loss balance (net of tax) related to: | ||||||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | -227 | -201 | ||||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | ||||||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | -227 | -201 | ||||
Cash Flow Hedging [Member] | Active hedges | ||||||
Accumulated other comprehensive loss balance (net of tax) related to: | ||||||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | -34 | -97 | ||||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | ||||||
Accumulated other comprehensive loss, cash flow hedging instruments (net of tax) | ($34) | ($97) | ||||
[1] | Amounts are net of benefit from income taxes of $29 million for the year ended December 31, 2014, net of provision for income taxes of $33 million for the year ended December 31, 2013, and net of benefit from income taxes of $41 million for the year ended December 31, 2012. |
Accounting_for_Derivative_Inst4
Accounting for Derivative Instruments and Hedging Activities (Details - Fair Value Hedge) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair Value Hedge, Hedging Instrument | ($133) | $107 | ($11) |
Fair Value Hedge, Hedged Item | 123 | -107 | 4 |
Fair Value Hedge, Hedge Ineffectiveness | -10 | 0 | -7 |
Derivatives Textuals [Abstract] | |||
Collateral Already Posted, Aggregate Fair Value | 126 | ||
Derivative, Net Liability Position, Aggregate Fair Value | 51 | ||
Excess Collateral Derivatives In Net Liability Position | 75 | ||
Agency Debentures [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair Value Hedge, Hedging Instrument | -100 | 73 | -18 |
Fair Value Hedge, Hedged Item | 91 | -72 | 16 |
Fair Value Hedge, Hedge Ineffectiveness | -9 | 1 | -2 |
Agency mortgage-backed securities [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair Value Hedge, Hedging Instrument | -33 | 34 | -7 |
Fair Value Hedge, Hedged Item | 32 | -35 | 7 |
Fair Value Hedge, Hedge Ineffectiveness | -1 | -1 | 0 |
FHLB advances | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair Value Hedge, Hedging Instrument | 14 | ||
Fair Value Hedge, Hedged Item | -19 | ||
Fair Value Hedge, Hedge Ineffectiveness | ($5) |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Gross Amount | $843 | $804 | |
Accumulated Depreciation and Amortization | -598 | -567 | |
Net Amount | 245 | 237 | |
Depreciation and amortization excluding intangible amortization | 78 | 89 | 91 |
Leases [Abstract] | |||
Sale Leaseback Transaction, Net Proceeds, Financing Activities | 56 | ||
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||
Minimum Lease Payments, Sale Leaseback Transactions, Next Twelve Months | 4 | ||
Minimum Lease Payments, Sale Leaseback Transactions, within Two Years | 4 | ||
Minimum Lease Payments, Sale Leaseback Transactions, within Three Years | 5 | ||
Minimum Lease Payments, Sale Leaseback Transactions, within Four Years | 5 | ||
Minimum Lease Payments, Sale Leaseback Transactions, within Five Years | 5 | ||
Minimum Lease Payments, Sale Leaseback Transactions, Thereafter | 24 | ||
Minimum Lease Payments, Sale Leaseback Transactions | 47 | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Next Twelve Months | -3 | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, within Two Years | -3 | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, within Three Years | -3 | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, within Four Years | -3 | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, within Five Years | -3 | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Thereafter | -9 | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions | -24 | ||
Software and Software Development Costs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 487 | 489 | |
Accumulated Depreciation and Amortization | -391 | -373 | |
Net Amount | 96 | 116 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 114 | 112 | |
Accumulated Depreciation and Amortization | -84 | -77 | |
Net Amount | 30 | 35 | |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 102 | 95 | |
Accumulated Depreciation and Amortization | -76 | -73 | |
Net Amount | 26 | 22 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 72 | 72 | |
Accumulated Depreciation and Amortization | -26 | -24 | |
Net Amount | 46 | 48 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 23 | 23 | |
Accumulated Depreciation and Amortization | -21 | -20 | |
Net Amount | 2 | 3 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 3 | 3 | |
Accumulated Depreciation and Amortization | 0 | 0 | |
Net Amount | 3 | 3 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 42 | 10 | |
Accumulated Depreciation and Amortization | 0 | 0 | |
Net Amount | 42 | 10 | |
Capitalized internally developed software, balance | 19 | 15 | |
Software Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized internally developed software costs | 27 | 24 | 55 |
Depreciation and amortization excluding intangible amortization | $47 | $57 | $58 |
Goodwill_and_Other_Intangibles2
Goodwill and Other Intangibles, Net (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | ||||
Balance at period start | $1,792 | |||
Impairment of goodwill | -142 | 0 | -142 | 0 |
Balance at period end | 1,792 | 1,792 | ||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||||
Other intangibles, net | 21 | |||
Customer Lists | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 435 | 435 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | -241 | -219 | ||
Finite-Lived Intangible Assets, Net | 194 | 216 | ||
Customer Lists | Weighted Average [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 20 years | 20 years | ||
Finite-Lived Intangible Assets, Weighted-Average, Useful Life, Remaining | 11 years | 12 years | ||
Balance Sheet Management | ||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||||
Goodwill, Impaired, Accumulated Impairment Loss | 101 | 101 | 101 | |
Trading And Investing | ||||
Goodwill [Roll Forward] | ||||
Balance at period start | 1,792 | 1,934 | ||
Impairment of goodwill | 0 | -142 | ||
Balance at period end | 1,792 | 1,792 | ||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||||
Number of Reporting Units | 2 | |||
Goodwill, Impaired, Accumulated Impairment Loss | 142 | 142 | ||
Trading And Investing | Market Making Reporting Unit | ||||
Goodwill [Roll Forward] | ||||
Impairment of goodwill | -142 | |||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||||
Other intangibles, net | 21 | |||
Trading And Investing | Retail Brokerage Reporting Unit [Member] | ||||
Goodwill [Roll Forward] | ||||
Balance at period end | $1,800 |
Goodwill_and_Other_Intangibles3
Goodwill and Other Intangibles, Net (Details - Future Amortization of Other Intangible, Net) (Customer Lists, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Customer Lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
2015 | $20 | |
2016 | 20 | |
2017 | 19 | |
2018 | 19 | |
2019 | 18 | |
Thereafter | 98 | |
Finite-Lived Intangible Assets, Net | $194 | $216 |
Other_Assets_Details
Other Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Assets [Abstract] | ||
Deferred tax assets, net | $951 | $1,239 |
Deposits paid for securities borrowed | 474 | 536 |
Held-for-sale assets | 0 | 177 |
Other | 1,158 | 869 |
Total other assets | $2,583 | $2,821 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deposits By Type [Abstract] | ||
Sweep deposits | $19,119 | $19,592 |
Complete savings deposits | 3,753 | 4,303 |
Checking deposits | 1,137 | 1,098 |
Other money market and savings deposits | 833 | 914 |
Time deposits | 48 | 64 |
Total deposits | 24,890 | 25,971 |
Deposits, Weighted Average Rates [Abstract] | ||
Sweep deposits, weighted-average rate | 0.03% | 0.04% |
Complete savings deposits, weighted-average rate | 0.01% | 0.01% |
Checking deposits, weighted-average rate | 0.03% | 0.03% |
Other money market and savings deposits, weighted-average rate | 0.01% | 0.01% |
Time deposits, weighted-average rate | 0.50% | 0.64% |
Total deposits, weighted-average rate | 0.03% | 0.03% |
Deposits Textuals [Abstract] | ||
Noninterest-bearing Deposit Liabilities, Domestic | 141 | 129 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2015 | 33 | |
2016 | 7 | |
2017 | 4 | |
2018 | 3 | |
2019 | 1 | |
Thereafter | 0 | |
Subtotal | 48 | |
Unamortized discount, net | 0 | |
Total time deposits | $48 | $64 |
Deposits_Details_Time_Deposits
Deposits (Details - Time Deposits over $100,000) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Deposits [Abstract] | ||
Contractual Maturities of Time Deposits, $100,000 or More, Description | 100000 | |
Contractual Maturities of Time Deposits, $250,000 or More, Description | 250000 | |
Contractual Maturities, Time Deposits, $100,000 or More [Abstract] | ||
Three months or less | $1 | $1 |
Three through six months | 1 | 2 |
Six through twelve months | 2 | 2 |
Over twelve months | 2 | 3 |
Total certificates of deposit | 6 | 8 |
Contractual Maturities Time Deposits 250000 Or More [Abstract] | ||
Over twelve months | 1 | 1 |
Total certificates of deposit | $1 | $1 |
Securities_Sold_Under_Agreemen2
Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt, Fiscal Year Maturity [Line Items] | ||
Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months, Weighted Average Interest Rate | 0.35% | |
Debt, Maturities, Repayments of Principal in Rolling Year Two, Weighted Average Interest Rate | 0.60% | |
Debt, Maturities, Repayments of Principal in Rolling Year Three, Weighted Average Interest Rate | 0.68% | |
Debt, Maturities, Repayments of Principal After Rolling Year Three, Weighted Average Interest Rate | 2.92% | |
Debt, Prior to Adjustments, Weighted Average Interest Rate | 0.64% | |
Debt, Weighted Average Interest Rate | 0.64% | 0.72% |
Repurchase Agreements [Member] | ||
Debt, Fiscal Year Maturity [Line Items] | ||
Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | 3,022,000,000 | |
Debt, Maturities, Repayments of Principal in Rolling Year Two | 350,000,000 | |
Debt, Maturities, Repayments of Principal in Rolling Year Three | 300,000,000 | |
Debt, Maturities, Repayments of Principal After Rolling Year Three | 0 | |
Debt, Prior to Adjustments | 3,672,000,000 | |
Debt, Fair Value Hedge Adjustments | 0 | |
Deferred Costs | 0 | |
Debt | 3,672,000,000 | 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 Rolling Twelve Months | 270,000,000 | |
Debt, Maturities, Repayments of Principal in Rolling Year Two | 250,000,000 | |
Debt, Maturities, Repayments of Principal in Rolling Year Three | 400,000,000 | |
Debt, Maturities, Repayments of Principal After Rolling Year Three | 0 | |
Debt, Prior to Adjustments | 920,000,000 | |
Debt, Fair Value Hedge Adjustments | 21,000,000 | |
Deferred Costs | -70,000,000 | |
Debt | 871,000,000 | 851,000,000 |
Miscellaneous Other Borrowings [Member] | ||
Debt, Fiscal Year Maturity [Line Items] | ||
Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | 0 | |
Debt, Maturities, Repayments of Principal in Rolling Year Two | 0 | |
Debt, Maturities, Repayments of Principal in Rolling Year Three | 0 | |
Debt, Maturities, Repayments of Principal After Rolling Year Three | 428,000,000 | |
Debt, Prior to Adjustments | 428,000,000 | |
Debt, Fair Value Hedge Adjustments | 0 | |
Deferred Costs | 0 | |
Debt | 428,000,000 | 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 Rolling Twelve Months | 3,292,000,000 | |
Debt, Maturities, Repayments of Principal in Rolling Year Two | 600,000,000 | |
Debt, Maturities, Repayments of Principal in Rolling Year Three | 700,000,000 | |
Debt, Maturities, Repayments of Principal After Rolling Year Three | 428,000,000 | |
Debt, Prior to Adjustments | 5,020,000,000 | |
Debt, Fair Value Hedge Adjustments | 21,000,000 | |
Deferred Costs | -70,000,000 | |
Debt | 4,971,000,000 | 5,822,000,000 |
Securities_Sold_Under_Agreemen3
Securities Sold Under Agreements To Repurchase And FHLB Advances And Other Borrowings (Details - Repurchase Agreements) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Weighted Average Interest Rate | 0.44% | |
Securities sold under agreements to repurchase | $3,672 | $4,543 |
Collateral, US Government Sponsored Enterprise Obligations, Amortized Cost | 3,806 | |
Collateral, US Government Sponsored Enterprise Obligations, Fair Value | 3,845 | |
Maturity up to 30 days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Weighted Average Interest Rate | 0.27% | |
Securities sold under agreements to repurchase | 1,850 | |
Maturity up to 30 days [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral, US Government Sponsored Enterprise Obligations, Amortized Cost | 1,916 | |
Collateral, US Government Sponsored Enterprise Obligations, Fair Value | 1,929 | |
Maturity 30 to 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Weighted Average Interest Rate | 0.39% | |
Securities sold under agreements to repurchase | 155 | |
Maturity 30 to 90 Days [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral, US Government Sponsored Enterprise Obligations, Amortized Cost | 161 | |
Collateral, US Government Sponsored Enterprise Obligations, Fair Value | 163 | |
Maturity over 90 days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Weighted Average Interest Rate | 0.64% | |
Securities sold under agreements to repurchase | 1,667 | |
Maturity over 90 days [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral, US Government Sponsored Enterprise Obligations, Amortized Cost | 1,729 | |
Collateral, US Government Sponsored Enterprise Obligations, Fair Value | $1,753 |
Securities_Sold_Under_Agreemen4
Securities Sold Under Agreements To Repurchase And FHLB Advances And Other Borrowings (Details - Trusts) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
ETBH Capital Trust II [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | $5 |
Maturity Date | 2031 |
Annual Interest Rate | 10.25% |
Debt instrument, interest rate, stated percentage | 10.25% |
ETBH Capital Trust I [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | 20 |
Maturity Date | 2031 |
Annual Interest Rate | 3.75% above 6-month LIBOR |
ETBH Capital Trusts V, VI,VIII [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | 51 |
Maturity Date | 2032 |
Annual Interest Rate | 3.25%-3.65% above 3-month LIBOR |
ETBH Capital Trusts VII, IX-XII [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | 65 |
Maturity Date | 2033 |
Annual Interest Rate | 3.00%-3.30% above 3-month LIBOR |
ETBH Capital Trusts XIII-XVII, XX [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | 77 |
Maturity Date | 2034 |
Annual Interest Rate | 2.45%-2.90% above 3-month LIBOR |
ETBH Capital Trusts XIX, XXI, XXII [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | 60 |
Maturity Date | 2035 |
Annual Interest Rate | 2.20%-2.40% above 3-month LIBOR |
ETBH Capital Trusts XXIII-XXIV [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | 45 |
Maturity Date | 2036 |
Annual Interest Rate | 2.10% above 3-month LIBOR |
ETBH Capital Trusts XXV-XXX [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | 110 |
Maturity Date | 2037 |
Annual Interest Rate | 1.90%-2.00% above 3-month LIBOR |
ETBH Capital Trust Total [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | $433 |
6-month LIBOR [Member] | ETBH Capital Trust I [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 3.75% |
3-month LIBOR [Member] | ETBH Capital Trusts XXIII-XXIV [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 2.10% |
3-month LIBOR [Member] | Minimum [Member] | ETBH Capital Trusts V, VI,VIII [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 3.25% |
3-month LIBOR [Member] | Minimum [Member] | ETBH Capital Trusts VII, IX-XII [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 3.00% |
3-month LIBOR [Member] | Minimum [Member] | ETBH Capital Trusts XIII-XVII, XX [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 2.45% |
3-month LIBOR [Member] | Minimum [Member] | ETBH Capital Trusts XIX, XXI, XXII [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 2.20% |
3-month LIBOR [Member] | Minimum [Member] | ETBH Capital Trusts XXV-XXX [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1.90% |
3-month LIBOR [Member] | Maximum [Member] | ETBH Capital Trusts V, VI,VIII [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 3.65% |
3-month LIBOR [Member] | Maximum [Member] | ETBH Capital Trusts VII, IX-XII [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 3.30% |
3-month LIBOR [Member] | Maximum [Member] | ETBH Capital Trusts XIII-XVII, XX [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 2.90% |
3-month LIBOR [Member] | Maximum [Member] | ETBH Capital Trusts XIX, XXI, XXII [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 2.40% |
3-month LIBOR [Member] | Maximum [Member] | ETBH Capital Trusts XXV-XXX [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 2.00% |
Securities_Sold_Under_Agreemen5
Securities Sold Under Agreements To Repurchase And FHLB Advances And Other Borrowings (Details - Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Extinguishment of Debt [Line Items] | |||
Losses on early extinguishment of debt | $71,000,000 | $0 | $335,000,000 |
Debt Instrument [Line Items] | |||
Repurchase Agreement Counterparty, Exceeds 10 Percent of Stockholders' Equity | 0 | ||
Repurchase Agreement Counterparty, Percentage of Stockholders' Equity | 10.00% | ||
FHLB Stock, Minimum Percentage Of Total Bank Assets | 0.09% | ||
FHLB Stock, Minimum Dollar Cap Amount | 15,000,000 | ||
Activity Based Stock, Minimum Percentage Of Outstanding Advances | 4.50% | ||
Investment in FHLB stock | 88,000,000 | 61,000,000 | |
Loans Pledged As Collateral, Lendable Value | 3,700,000,000 | 3,900,000,000 | |
Trust Preferred Securities, Years Due After Issuance | 30 years | ||
Trust Preferred Securities, Par Value | 1,000 | ||
Federal Home Loan Bank Advances [Member] | |||
Debt Instrument [Line Items] | |||
FHLB Advances, Maturities Summary, Floating Rate | 750,000,000 | 750,000,000 | |
FHLB Advances, Maturities Summary, Fixed Rate | 170,000,000 | 170,000,000 | |
Securities Sold under Agreements to Repurchase [Member] | |||
Extinguishment of Debt [Line Items] | |||
Expiration of Debt, Amount | 600,000,000 | ||
Extinguishment of debt, amount | 100,000,000 | 100,000,000 | 100,000,000 |
Losses on early extinguishment of debt | 12,000,000 | 8,000,000 | |
Securities Sold under Agreements to Repurchase [Member] | Maximum [Member] | |||
Extinguishment of Debt [Line Items] | |||
Losses on early extinguishment of debt | 1,000,000 | ||
Federal Home Loan Bank Advances [Member] | |||
Extinguishment of Debt [Line Items] | |||
Extinguishment of debt, amount | 1,000,000,000 | ||
Losses on early extinguishment of debt | $69,000,000 |
Corporate_Debt_Details
Corporate Debt (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | ||||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2012 | Nov. 30, 2014 | 31-May-11 | Dec. 31, 2009 | Dec. 31, 2014 |
Debt Disclosure (Textuals) [Abstract] | ||||||||
Losses on early extinguishment of debt | ($71,000,000) | $0 | ($335,000,000) | |||||
Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | |||||||
Line of Credit Facility, Unrestricted Cash Minimum | 100,000,000 | |||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | 0 | ||||||
Corporate Debt Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face Value | 1,378,000,000 | 1,782,000,000 | 1,378,000,000 | |||||
Unamortized discount | -12,000,000 | -14,000,000 | -12,000,000 | |||||
Total corporate debt | 1,366,000,000 | 1,768,000,000 | 1,366,000,000 | |||||
Corporate Debt By Maturity [Abstract] | ||||||||
2015 | 0 | 0 | ||||||
2016 | 0 | 0 | ||||||
2017 | 0 | 0 | ||||||
2018 | 0 | 0 | ||||||
2019 | 800,000,000 | 800,000,000 | ||||||
Thereafter | 578,000,000 | 578,000,000 | ||||||
Face Value | 1,378,000,000 | 1,782,000,000 | 1,378,000,000 | |||||
Unamortized discount | -12,000,000 | -14,000,000 | -12,000,000 | |||||
Total corporate debt | 1,366,000,000 | 1,768,000,000 | 1,366,000,000 | |||||
Interest Bearing Total [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face Value | 1,340,000,000 | 1,740,000,000 | 1,340,000,000 | |||||
Unamortized discount | -12,000,000 | -14,000,000 | -12,000,000 | |||||
Total corporate debt | 1,328,000,000 | 1,726,000,000 | 1,328,000,000 | |||||
Corporate Debt By Maturity [Abstract] | ||||||||
Face Value | 1,340,000,000 | 1,740,000,000 | 1,340,000,000 | |||||
Unamortized discount | -12,000,000 | -14,000,000 | -12,000,000 | |||||
Total corporate debt | 1,328,000,000 | 1,726,000,000 | 1,328,000,000 | |||||
Senior Notes Interest Bearing Six And Three Eighths Percent [Member] | ||||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument maturity year | 2019 | |||||||
Senior Notes Interest Bearing Six And Three Eighths Percent [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face Value | 800,000,000 | 800,000,000 | 800,000,000 | 800,000,000 | ||||
Unamortized discount | -5,000,000 | -6,000,000 | -5,000,000 | |||||
Total corporate debt | 795,000,000 | 794,000,000 | 795,000,000 | |||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 6.38% | |||||||
Corporate Debt By Maturity [Abstract] | ||||||||
Face Value | 800,000,000 | 800,000,000 | 800,000,000 | 800,000,000 | ||||
Unamortized discount | -5,000,000 | -6,000,000 | -5,000,000 | |||||
Total corporate debt | 795,000,000 | 794,000,000 | 795,000,000 | |||||
Senior Notes Interest Bearing Five and Three Eighths Percent [Member] | ||||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument maturity year | 2022 | |||||||
Senior Notes Interest Bearing Five and Three Eighths Percent [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face Value | 540,000,000 | 540,000,000 | 540,000,000 | |||||
Unamortized discount | -7,000,000 | -7,000,000 | ||||||
Total corporate debt | 533,000,000 | 533,000,000 | ||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 5.38% | |||||||
Corporate Debt By Maturity [Abstract] | ||||||||
Face Value | 540,000,000 | 540,000,000 | 540,000,000 | |||||
Unamortized discount | -7,000,000 | -7,000,000 | ||||||
Total corporate debt | 533,000,000 | 533,000,000 | ||||||
Senior Notes Interest Bearing Six And Three Fourths Percent [Member] | ||||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument maturity year | 2016 | |||||||
Senior Notes Interest Bearing Six And Three Fourths Percent [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face Value | 435,000,000 | |||||||
Unamortized discount | -4,000,000 | |||||||
Total corporate debt | 431,000,000 | |||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 6.75% | |||||||
Corporate Debt By Maturity [Abstract] | ||||||||
Face Value | 435,000,000 | |||||||
Unamortized discount | -4,000,000 | |||||||
Total corporate debt | 431,000,000 | |||||||
Senior Notes Interest Bearing Six Percent [Member] | ||||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument maturity year | 2017 | |||||||
Senior Notes Interest Bearing Six Percent [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face Value | 505,000,000 | |||||||
Unamortized discount | -4,000,000 | |||||||
Total corporate debt | 501,000,000 | |||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 6.00% | |||||||
Corporate Debt By Maturity [Abstract] | ||||||||
Face Value | 505,000,000 | |||||||
Unamortized discount | -4,000,000 | |||||||
Total corporate debt | 501,000,000 | |||||||
Senior Notes Interest Bearing Eight Percent [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Disclosure (Textuals) [Abstract] | ||||||||
Debt Conversion, Converted Instrument, Amount | 400,000,000 | |||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 8.00% | |||||||
Senior Notes Interest Bearing Seven And Seven Eighths Percent [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 7.88% | |||||||
Interest Bearing Twelve And Half Percent [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Disclosure (Textuals) [Abstract] | ||||||||
Debt Conversion, Converted Instrument, Amount | 1,300,000,000 | |||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 12.50% | |||||||
Senior Notes Interest Bearing Seven And Seven Eighths Percent And Interest Bearing Twelve And Half Percent [Member] | ||||||||
Debt Disclosure (Textuals) [Abstract] | ||||||||
Losses on early extinguishment of debt | -257,000,000 | |||||||
Senior Notes Interest Bearing Six And Three Fourths Percent and Six Percent [Member] | ||||||||
Debt Disclosure (Textuals) [Abstract] | ||||||||
Losses on early extinguishment of debt | 59,000,000 | -59,000,000 | ||||||
Repayments of Long-Term Debt and Associated Premiums, Interest and Fees | 460,000,000 | |||||||
Noninterest Bearing Convertible Debentures [Member] | ||||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument maturity year | 2019 | |||||||
Noninterest Bearing Convertible Debentures [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face Value | 38,000,000 | 42,000,000 | 38,000,000 | |||||
Unamortized discount | 0 | 0 | 0 | |||||
Total corporate debt | 38,000,000 | 42,000,000 | 38,000,000 | |||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 0.00% | |||||||
Corporate Debt By Maturity [Abstract] | ||||||||
Face Value | 38,000,000 | 42,000,000 | 38,000,000 | |||||
Unamortized discount | 0 | 0 | 0 | |||||
Total corporate debt | 38,000,000 | 42,000,000 | 38,000,000 | |||||
Noninterest Bearing Convertible Debentures, Due 2019, Class A [Member] | ||||||||
Debt Disclosure (Textuals) [Abstract] | ||||||||
Debt instrument, convertible, conversion ratio | 10.34 | |||||||
Debt Instrument, Convertible, Conversion Ratio, Principal Amount | 1,000 | |||||||
Noninterest Bearing Convertible Debentures, Due 2019, Class A [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Disclosure (Textuals) [Abstract] | ||||||||
Debt Conversion, Original Debt, Amount | 1,700,000,000 | |||||||
Debt Conversion, Converted Instrument, Amount | 1,700,000,000 | |||||||
Shares issued conversion of convertible securities | 164.6 | |||||||
Noninterest Bearing Convertible Debentures, Due 2019, Class B [Member] | ||||||||
Debt Disclosure (Textuals) [Abstract] | ||||||||
Debt instrument, convertible, conversion ratio | 15.51 | |||||||
Debt Instrument, Convertible, Conversion Ratio, Principal Amount | 1,000 | |||||||
Noninterest Bearing Convertible Debentures, Due 2019, Class B [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Disclosure (Textuals) [Abstract] | ||||||||
Debt Conversion, Original Debt, Amount | 2,000,000 | |||||||
Debt Conversion, Converted Instrument, Amount | $2,000,000 | |||||||
Shares issued conversion of convertible securities | 0.1 |
Other_Liabilities_Details
Other Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ||
Deposits received for securities loaned | $1,649 | $1,050 |
Held-for-sale liabilities | 0 | 107 |
Other | 824 | 396 |
Total other liabilities | $2,473 | $1,553 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $0 | $0 | $0 |
State | 4 | 3 | 3 |
Foreign | 0 | 0 | 0 |
Total current | 4 | 3 | 3 |
Deferred: | |||
Federal | 152 | 127 | -137 |
State | 3 | -20 | 0 |
Foreign | 0 | 0 | 0 |
Total deferred | 155 | 107 | -137 |
Non-current tax expense (benefit) | 0 | -1 | 116 |
Income tax expense (benefit) | 159 | 109 | -18 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Domestic | 438 | 186 | -135 |
Foreign | 14 | 9 | 4 |
Income (loss) before income tax expense (benefit) | $452 | $195 | ($131) |
Income_Taxes_Details_Unrecogni
Income Taxes (Details - Unrecognized Tax Benefits) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of period | $333 | $492 | $377 |
Additions based on tax positions related to prior years | 12 | 10 | 131 |
Additions based on tax positions related to current year | 0 | 0 | 8 |
Reductions based on tax positions related to prior years | -14 | -163 | -23 |
Settlements with taxing authorities | 0 | -5 | 0 |
Statute of limitations lapses | -1 | -1 | -1 |
Unrecognized tax benefits, end of period | 330 | 333 | 492 |
Unrecognized tax benefits, period increase (decrease) | 3 | ||
Unrecognized tax benefits that would impact effective tax rate | 270 | ||
Unrecognized Tax Benefits (Textuals) [Abstract] | |||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, upper bound | 151 | ||
Income tax examination, penalties and interest accrued | 21 | 20 | |
Income tax examination penalties and interest accrued period increase decrease | $1 | ||
Hong Kong [Member] | Earliest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax years by major tax jurisdiction | 2008 | ||
Hong Kong [Member] | Latest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax years by major tax jurisdiction | 2014 | ||
United Kingdom [Member] | Earliest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax years by major tax jurisdiction | 2012 | ||
United Kingdom [Member] | Latest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax years by major tax jurisdiction | 2014 | ||
United States [Member] | Earliest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax years by major tax jurisdiction | 2004 | ||
United States [Member] | Latest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax years by major tax jurisdiction | 2014 | ||
Various States [Member] | Earliest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax years by major tax jurisdiction | 2007 | ||
Various States [Member] | Latest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax years by major tax jurisdiction | 2014 |
Income_Taxes_Details_Deferred_
Income Taxes (Details - Deferred Taxes and Valuation Allowance) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2009 |
Deferred tax assets: | |||
Net operating losses | $632 | $572 | |
Reserves and allowances, net | 601 | 891 | |
Mark to market | 110 | 125 | |
Deferred compensation | 43 | 36 | |
Tax credits | 37 | 31 | |
Basis differences in investments | 9 | 12 | |
Other | 1 | 7 | |
Total deferred tax assets | 1,433 | 1,674 | |
Valuation allowance | -91 | -82 | |
Total deferred tax assets, net of valuation allowance | 1,342 | 1,592 | |
Deferred tax liabilities: | |||
Depreciation and amortization | -387 | -353 | |
Other | -4 | 0 | |
Total deferred tax liabilities | -391 | -353 | |
Net deferred tax asset | 951 | 1,239 | |
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | |||
Percentage of federal deferred tax assets not related to net operating losses | 40.00% | ||
Period Trading and Investing Segment Generated Income | 11 years | ||
Period Deferred Tax Assets Were Generated, Due to Key Business Activities | 7 years | ||
Increase in valuation allowance | 9 | ||
Valuation allowance | -91 | -82 | |
Total deferred tax assets | 1,433 | 1,674 | |
Foreign Country [Member] | |||
Deferred tax assets: | |||
Total deferred tax assets | 32 | ||
Valuation allowance | -32 | ||
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | |||
Operating loss carryforwards | 121 | ||
Valuation allowance | -32 | ||
Other temporary differences | 19 | ||
Total deferred tax assets | 32 | ||
State and Local Jurisdiction [Member] | |||
Deferred tax assets: | |||
Total deferred tax assets | 143 | ||
Valuation allowance | -48 | ||
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | |||
Operating loss carryforwards | 3,800 | ||
Valuation allowance | -48 | ||
Total deferred tax assets | 143 | ||
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | |||
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | |||
Operating loss carryforwards, expiration dates | 1-Jan-15 | ||
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | |||
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | |||
Operating loss carryforwards, expiration dates | 31-Dec-33 | ||
Federal Jurisdiction [Member] | |||
Deferred tax assets: | |||
Valuation allowance | 0 | ||
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | |||
Operating loss carryforwards | 1,937 | 1,886 | |
Operating loss carryforwards, expiration period | 13 years | ||
Valuation allowance | 0 | ||
Charitable Contribution [Member] | |||
Deferred tax assets: | |||
Total deferred tax assets | 11 | ||
Valuation allowance | -11 | ||
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | |||
Valuation allowance | -11 | ||
Total deferred tax assets | 11 | ||
Charitable contribution carryforwards | $27 | ||
Charitable Contribution [Member] | Earliest Tax Year [Member] | |||
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | |||
Charitable contribution carryforwards expiration dates | 1-Jan-15 | ||
Charitable Contribution [Member] | Latest Tax Year [Member] | |||
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | |||
Charitable contribution carryforwards expiration dates | 31-Dec-17 |
Income_Taxes_Details_Effective
Income Taxes (Details - Effective Tax Rate) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | -35.00% |
State income taxes, net of federal tax benefit | 2.00% | 2.80% | -11.80% |
Difference between statutory rate and foreign effective tax rate | -1.00% | -1.40% | -1.10% |
Tax exempt income | -0.10% | -0.30% | -0.40% |
Disallowed interest expense | 0.00% | 0.00% | 10.30% |
Change in valuation allowance | 2.20% | 1.10% | 6.90% |
2009 Debt Exchange | 0.00% | 0.00% | -19.70% |
Tax credits | -0.60% | -1.80% | -12.20% |
California state tax legislative changes | 0.00% | 0.00% | 19.20% |
Estimated reserve for uncertain tax positions | -0.30% | -2.60% | 9.10% |
Deferred tax adjustments | -1.60% | 4.50% | 8.40% |
Disallowed losses on early extinguishment of debt | 0.00% | 0.00% | 7.40% |
Tax on undistributed earnings and profits in certain foreign subsidiaries | 1.10% | 2.40% | 2.50% |
New York state tax legislative changes | -1.80% | 0.00% | 0.00% |
Tax impact of exit of market making business | 0.00% | 16.40% | 0.00% |
Other | 0.30% | -0.20% | 2.40% |
Effective tax rate | 35.20% | 55.90% | -14.00% |
Income_Taxes_Details_Debt_Exch
Income Taxes (Details - Debt Exchange and Tax Ownership Change) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |
Share data in Millions, unless otherwise specified | Dec. 31, 2009 | Sep. 30, 2009 | Dec. 31, 2014 | Sep. 30, 2012 |
Debt Exchange [Line Items] | ||||
Conversion of convertible debentures | $129,000,000 | $592,000,000 | $5,000,000 | |
Conversion of convertible debentures, shares | 13 | 57 | ||
Debt Ownership Change [Line Items] | ||||
Percentage of stock of the corporation, held by shareholders | 5.00% | |||
Rolling period for change in stock ownership to occur | 3 years | |||
Ownership change percentage minimum | 50.00% | |||
Federal Jurisdiction [Member] | ||||
Debt Ownership Change [Line Items] | ||||
Operating loss carryforwards | 1,886,000,000 | 1,937,000,000 | ||
Operating loss carryforward recorded | 480,000,000 | |||
Operating loss carryforwards annual limitations on use | 194,000,000 | |||
Operating loss carryforwards statutory expiration period | 20 years | |||
Operating loss carryforwards, expiration period | 13 years | |||
Noninterest Bearing Convertible Debentures [Member] | ||||
Debt Exchange [Line Items] | ||||
Convertible debentures issued | $1,700,000,000 |
Shareholders_Equity_Details_Sh
Shareholders' Equity (Details - Shareholders' Equity Activity) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Shareholders Equity Activity [Line Items] | |||||||||||
Balance, | $4,856 | $4,904 | $4,856 | $4,904 | $4,928 | ||||||
Net income (loss) | 41 | 86 | 69 | 97 | 58 | 47 | -54 | 35 | 293 | 86 | -113 |
Net change from available-for-sale securities | 167 | ||||||||||
Net change from cash flow hedging instruments | 37 | ||||||||||
Other | 22 | ||||||||||
Balance, | 5,375 | 4,856 | 5,375 | 4,856 | 4,904 | ||||||
Common Stock and Additional Paid in Capital | |||||||||||
Shareholders Equity Activity [Line Items] | |||||||||||
Balance, | 7,331 | 7,331 | |||||||||
Net income (loss) | 0 | ||||||||||
Net change from available-for-sale securities | 0 | ||||||||||
Net change from cash flow hedging instruments | 0 | ||||||||||
Other | 22 | ||||||||||
Balance, | 7,353 | 7,353 | |||||||||
Accumulated Deficit and Other Comprehensive Loss | |||||||||||
Shareholders Equity Activity [Line Items] | |||||||||||
Balance, | -2,475 | -2,475 | |||||||||
Net income (loss) | 293 | ||||||||||
Net change from available-for-sale securities | 167 | ||||||||||
Net change from cash flow hedging instruments | 37 | ||||||||||
Other | 0 | ||||||||||
Balance, | ($1,978) | ($1,978) |
Shareholders_Equity_Details_Ac
Shareholders' Equity (Details - Accumulated Other Comprehensive Loss) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, | ($453) | ($310) | ($387) |
Other comprehensive income (loss), before reclassifications | 154 | -193 | 127 |
Amounts reclassified from accumulated other comprehensive loss | 50 | 50 | -50 |
Other comprehensive income (loss) | 204 | -143 | 77 |
Ending balance, | -249 | -453 | -310 |
Available-for-sale Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, | -160 | 137 | 68 |
Other comprehensive income (loss), before reclassifications | 193 | -260 | 197 |
Amounts reclassified from accumulated other comprehensive loss | -26 | -37 | -128 |
Other comprehensive income (loss) | 167 | -297 | 69 |
Ending balance, | 7 | -160 | 137 |
Cash Flow Hedging Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, | -298 | -452 | -458 |
Other comprehensive income (loss), before reclassifications | -39 | 67 | -72 |
Amounts reclassified from accumulated other comprehensive loss | 76 | 87 | 78 |
Other comprehensive income (loss) | 37 | 154 | 6 |
Ending balance, | -261 | -298 | -452 |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, | 5 | 5 | 3 |
Other comprehensive income (loss), before reclassifications | 0 | 0 | 2 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 2 |
Ending balance, | $5 | $5 | $5 |
Shareholders_Equity_Details_Ac1
Shareholders' Equity (Details - Accumulated Other Comprehensive Loss Reclassification) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gains on loans and securities, net | $36 | $61 | $201 | ||||||||
Operating interest income | 1,293 | 1,220 | 1,371 | ||||||||
Operating interest expense | -205 | -238 | -286 | ||||||||
Income (loss) before income taxes | 452 | 195 | -131 | ||||||||
Income tax expense (benefit) | -159 | -109 | 18 | ||||||||
Net income (loss) | 41 | 86 | 69 | 97 | 58 | 47 | -54 | 35 | 293 | 86 | -113 |
Available-for-sale Securities | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gains on loans and securities, net | 42 | 60 | |||||||||
Income tax expense (benefit) | -16 | -23 | |||||||||
Net income (loss) | 26 | 37 | |||||||||
Cash Flow Hedging Instruments | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Operating interest income | 0 | 8 | |||||||||
Operating interest expense | -125 | -147 | |||||||||
Income (loss) before income taxes | -125 | -139 | |||||||||
Income tax expense (benefit) | 49 | 52 | |||||||||
Net income (loss) | ($76) | ($87) |
Shareholders_Equity_Shareholde
Shareholders' Equity Shareholders Equity (Details - Textuals) | Dec. 31, 2014 | Dec. 31, 2013 |
Equity [Abstract] | ||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic: | |||||||||||
Net income (loss) | $41 | $86 | $69 | $97 | $58 | $47 | ($54) | $35 | $293 | $86 | ($113) |
Basic weighted-average shares outstanding (in thousands) | 288,705,000 | 286,991,000 | 285,748,000 | ||||||||
Basic earnings (loss) per share (in dollars per share) | $0.14 | $0.30 | $0.24 | $0.34 | $0.20 | $0.17 | ($0.19) | $0.12 | $1.02 | $0.30 | ($0.39) |
Diluted: | |||||||||||
Net income (loss) | $41 | $86 | $69 | $97 | $58 | $47 | ($54) | $35 | $293 | $86 | ($113) |
Basic weighted-average shares outstanding (in thousands) | 288,705,000 | 286,991,000 | 285,748,000 | ||||||||
Effect of dilutive securities: | |||||||||||
Weighted-average convertible debentures (in thousands) | 3,999,000 | 4,125,000 | 0 | ||||||||
Weighted-average options and restricted stock issued to employees (in thousands) | 1,399,000 | 1,473,000 | 0 | ||||||||
Diluted weighted-average shares outstanding (in thousands) | 294,103,000 | 292,589,000 | 285,748,000 | ||||||||
Diluted earnings (loss) per share (in dollars per share) | $0.14 | $0.29 | $0.24 | $0.33 | $0.20 | $0.16 | ($0.19) | $0.12 | $1 | $0.29 | ($0.39) |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 500,000 | 1,700,000 | 7,000,000 | ||||||||
Convertible debentures | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,100,000 | ||||||||||
Stock options and restricted stock awards and units | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 500,000 | 1,700,000 | |||||||||
Stock options and restricted stock awards and units, net loss | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 400,000 | ||||||||||
Stock options and restricted stock awards and units, other | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,500,000 |
Regulatory_Requirements_Detail
Regulatory Requirements (Details) (USD $) | 12 Months Ended | |
Dec. 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 | 171,000,000 | 147,000,000 |
Net Capital | 1,273,000,000 | 1,020,000,000 |
Excess Net Capital | 1,102,000,000 | 873,000,000 |
E TRADE Bank [Member] | ||
Total capital | ||
Total capital | 4,772,000,000 | 4,331,000,000 |
Capital required to be well capitalized | 1,772,000,000 | 1,786,000,000 |
Excess capital to be well capitalized | 3,000,000,000 | 2,545,000,000 |
Total capital to risk weighted assets (percent) | 26.93% | 24.25% |
Total capital required to be well capitalized to risk weighted assets (percent) | 10.00% | 10.00% |
Tier I capital | ||
Tier 1 risk based capital | 4,548,000,000 | 4,105,000,000 |
Tier 1 risk based capital required to be well capitalized | 1,063,000,000 | 1,072,000,000 |
Excess Tier 1 risk based capital to well capitalized | 3,485,000,000 | 3,033,000,000 |
Tier 1 risk based capital to risk weighted assets (percent) | 25.67% | 22.98% |
Tier 1 risk based capital required to be well capitalized to risk weighted assets (percent) | 6.00% | 6.00% |
Tier I leverage | ||
Tier 1 leverage capital | 4,548,000,000 | 4,105,000,000 |
Tier 1 leverage capital required to be well capitalized | 2,143,000,000 | 2,158,000,000 |
Excess Tier 1 leverage capital to well capitalized | 2,405,000,000 | 1,947,000,000 |
Tier 1 leverage capital to adjusted assets (percent) | 10.61% | 9.51% |
Tier 1 leverage capital required to be well capitalized to adjusted assets (percent) | 5.00% | 5.00% |
E TRADE Clearing [Member] | ||
Broker Dealer Subsidiaries Net Capital [Line Items] | ||
Required Net Capital | 170,000,000 | 144,000,000 |
Net Capital | 795,000,000 | 715,000,000 |
Excess Net Capital | 625,000,000 | 571,000,000 |
E TRADE Securities [Member] | ||
Broker Dealer Subsidiaries Net Capital [Line Items] | ||
Required Net Capital | 250,000 | 250,000 |
Net Capital | 459,000,000 | 261,000,000 |
Excess Net Capital | 459,000,000 | 261,000,000 |
Dividends from subsidiaries | 434,000,000 | |
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 | 1,000,000 | 2,000,000 |
Net Capital | 19,000,000 | 22,000,000 |
Excess Net Capital | $18,000,000 | $20,000,000 |
Lease_Arrangements_Details
Lease Arrangements (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Lease Arrangements Textuals [Abstract] | |||
Operating leases, rent expense, net | $21 | $22 | $23 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 25 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 25 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 24 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 21 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 19 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 31 | ||
Operating Leases, Future Minimum Payments Due | 145 | ||
Sublease proceeds | -4 | ||
Net lease commitments | $141 |
Commitments_Contingencies_and_1
Commitments, Contingencies and Other Regulatory Matters (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2003 | 16-May-11 | Oct. 20, 2014 | Apr. 18, 2014 | 2-May-14 | Jun. 13, 2014 | Oct. 31, 2014 | Apr. 30, 2013 |
Loss Contingencies [Line Items] | |||||||||
Commitments to fund partnerships | $40 | ||||||||
Time deposit maturities, next rolling twelve months | 33 | ||||||||
Supply Commitment [Line Items] | |||||||||
Trust preferred securities contractual time period | 30 years | ||||||||
Liquidation amount per trust preferred security | 1,000 | ||||||||
Estimated maximum potential liability trust preferred securities | 436 | ||||||||
Unfunded Commitments to Extend Credit [Member] | |||||||||
Supply Commitment [Line Items] | |||||||||
Unfunded Commitments To Extend Credit | 169 | ||||||||
Axajo Complaint [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Damages Awarded, Value | 1 | ||||||||
Droplets Inc Complaint [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 2 | ||||||||
John Scranton Complaint [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Alleged Minimum Amount Company Would Exercise Options At Expiration | $0.01 | ||||||||
John Scranton Complaint [Member] | Judicial Ruling With Prejudice [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Claims Dismissed, Number | 4 | ||||||||
John Scranton Complaint [Member] | Judicial Ruling Without Prejudice [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Claims Dismissed, Number | 2 | ||||||||
Providence, Rhode Island Complaint [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Number of Defendants | 41 | ||||||||
American European Insurance Company Complaint [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Number of Defendants | 42 | ||||||||
James Flynn And Dominic Morelli Complaint [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Number of Defendants | 26 | ||||||||
SEC [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Number of Plaintiffs | 3 | ||||||||
Litigation Settlement, Amount, Disgorgement and Interest | 1.6 | ||||||||
Litigation Settlement, Amount, Penalty | $1 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Extinguishment of Debt [Line Items] | |||||||||||
Losses on early extinguishment of debt | $71 | $0 | $335 | ||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||
Number of Operating Segments | 2 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net operating interest income | 1,088 | 982 | 1,085 | ||||||||
Total non-interest income | 726 | 741 | 815 | ||||||||
Total net revenue | 461 | 440 | 438 | 475 | 446 | 417 | 440 | 420 | 1,814 | 1,723 | 1,900 |
Provision for loan losses | 36 | 143 | 355 | ||||||||
Total operating expense | 1,145 | 1,275 | 1,162 | ||||||||
Income (loss) before other income (expense) and income taxes | 633 | 305 | 383 | ||||||||
Total other income (expense) | -181 | -110 | -514 | ||||||||
Income (loss) before income taxes | 452 | 195 | -131 | ||||||||
Income tax expense (benefit) | 159 | 109 | -18 | ||||||||
Net income (loss) | 41 | 86 | 69 | 97 | 58 | 47 | -54 | 35 | 293 | 86 | -113 |
Total assets | 45,530 | 46,280 | 45,530 | 46,280 | 47,387 | ||||||
Corporate/Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net operating interest income | 1 | 0 | 0 | ||||||||
Total non-interest income | 0 | 0 | 0 | ||||||||
Total net revenue | 1 | 0 | 0 | ||||||||
Total operating expense | 231 | 213 | 173 | ||||||||
Income (loss) before other income (expense) and income taxes | -230 | -213 | -173 | ||||||||
Total other income (expense) | -181 | -110 | -514 | ||||||||
Income (loss) before income taxes | -411 | -323 | -687 | ||||||||
Total assets | 423 | 676 | 423 | 676 | 576 | ||||||
Trading And Investing | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net operating interest income | 632 | 540 | 641 | ||||||||
Total non-interest income | 683 | 677 | 622 | ||||||||
Total net revenue | 1,315 | 1,217 | 1,263 | ||||||||
Total operating expense | 766 | 883 | 769 | ||||||||
Income (loss) before other income (expense) and income taxes | 549 | 334 | 494 | ||||||||
Income (loss) before income taxes | 549 | 334 | 494 | ||||||||
Total assets | 12,032 | 10,820 | 12,032 | 10,820 | 9,505 | ||||||
Balance Sheet Management | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net operating interest income | 455 | 442 | 444 | ||||||||
Total non-interest income | 43 | 64 | 193 | ||||||||
Total net revenue | 498 | 506 | 637 | ||||||||
Provision for loan losses | 36 | 143 | 355 | ||||||||
Total operating expense | 148 | 179 | 220 | ||||||||
Income (loss) before other income (expense) and income taxes | 314 | 184 | 62 | ||||||||
Income (loss) before income taxes | 314 | 184 | 62 | ||||||||
Total assets | 33,075 | 34,784 | 33,075 | 34,784 | 37,306 | ||||||
Gross revenues | Customer concentration risk | Greater than | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Number Of Customer Accounts | 0 | 0 | 0 | 0 | 0 | ||||||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | ||||||||
Corporate Debt Securities [Member] | |||||||||||
Extinguishment of Debt [Line Items] | |||||||||||
Losses on early extinguishment of debt | $59 | $257 |
Condensed_Statement_of_Compreh
Condensed Statement of Comprehensive Income (Loss) (Parent Company Only) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Statement of Income Captions [Line Items] | |||||||||||
Other revenues | $38 | $35 | $38 | ||||||||
Total net revenue | 461 | 440 | 438 | 475 | 446 | 417 | 440 | 420 | 1,814 | 1,723 | 1,900 |
Total operating expense | 1,145 | 1,275 | 1,162 | ||||||||
Income before other income (expense), income tax benefit, and equity in income of consolidated subsidiaries | 633 | 305 | 383 | ||||||||
Total other income (expense) | -181 | -110 | -514 | ||||||||
Income (loss) before income tax benefit and equity in income of consolidated subsidiaries | 452 | 195 | -131 | ||||||||
Income tax benefit | 159 | 109 | -18 | ||||||||
Equity in undistributed income from subsidiaries | 3 | 4 | 1 | ||||||||
Net income (loss) | 41 | 86 | 69 | 97 | 58 | 47 | -54 | 35 | 293 | 86 | -113 |
Other comprehensive income (loss) | 204 | -143 | 77 | ||||||||
Comprehensive income (loss) | 497 | -57 | -36 | ||||||||
Parent Company [Member] | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Dividends from subsidiaries | 311 | 193 | 99 | ||||||||
Other revenues | 333 | 281 | 270 | ||||||||
Total net revenue | 644 | 474 | 369 | ||||||||
Total operating expense | 421 | 359 | 339 | ||||||||
Income before other income (expense), income tax benefit, and equity in income of consolidated subsidiaries | 223 | 115 | 30 | ||||||||
Total other income (expense) | -166 | -108 | -434 | ||||||||
Income (loss) before income tax benefit and equity in income of consolidated subsidiaries | 57 | 7 | -404 | ||||||||
Income tax benefit | -88 | -76 | -188 | ||||||||
Equity in undistributed income from subsidiaries | 148 | 3 | 103 | ||||||||
Net income (loss) | 293 | 86 | -113 | ||||||||
Other comprehensive income (loss) | 204 | -143 | 77 | ||||||||
Comprehensive income (loss) | $497 | ($57) | ($36) |
Condensed_Balance_Sheet_Parent
Condensed Balance Sheet (Parent Company Only) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
ASSETS | ||||
Cash and equivalents | $1,783 | $1,838 | $2,762 | $2,100 |
Property and equipment, net | 245 | 237 | ||
Other assets | 2,583 | 2,821 | ||
Total assets | 45,530 | 46,280 | 47,387 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Corporate debt | 1,366 | 1,768 | ||
Other liabilities | 2,473 | 1,553 | ||
Total liabilities | 40,155 | 41,424 | ||
Total shareholders’ equity | 5,375 | 4,856 | 4,904 | 4,928 |
Total liabilities and shareholders’ equity | 45,530 | 46,280 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash and equivalents | 220 | 406 | 400 | 479 |
Property and equipment, net | 165 | 137 | ||
Investment in consolidated subsidiaries | 5,763 | 5,445 | ||
Receivable from subsidiaries | 31 | 36 | ||
Other assets | 745 | 710 | ||
Total assets | 6,924 | 6,734 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Corporate debt | 1,366 | 1,768 | ||
Other liabilities | 183 | 110 | ||
Total liabilities | 1,549 | 1,878 | ||
Total shareholders’ equity | 5,375 | 4,856 | ||
Total liabilities and shareholders’ equity | $6,924 | $6,734 |
Condensed_Statement_of_Cash_Fl
Condensed Statement of Cash Flows (Parent Company Only) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income (loss) | $293 | $86 | ($113) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 331 | 395 | 409 |
Equity in undistributed income from subsidiaries | -3 | -4 | -1 |
Losses on early extinguishment of debt | 6 | 135 | |
Other | 1 | -1 | |
Net effect of decrease (increase) in other assets | -156 | 33 | 265 |
Net effect of (decrease) increase in other liabilities | 705 | 131 | -168 |
Net cash provided by (used in) operating activities | 701 | 1,117 | -159 |
Cash flows from investing activities: | |||
Capital expenditures for property and equipment | -87 | -47 | -80 |
Proceeds from sale of subsidiary | 76 | 0 | 0 |
Other | -69 | 6 | 71 |
Net cash (used in) provided by investing activities | 1,713 | 286 | 665 |
Cash flows from financing activities: | |||
Net proceeds from issuance of senior notes | 540 | 1,305 | |
Payments on senior and springing lien notes | -940 | -1,174 | |
Other | 53 | 2 | -17 |
Net cash provided by financing activities | -2,469 | -2,327 | 156 |
Increase (decrease) in cash and equivalents | -55 | -924 | 662 |
Cash and equivalents, beginning of period | 1,838 | 2,762 | 2,100 |
Cash and equivalents, end of period | 1,783 | 1,838 | 2,762 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net income (loss) | 293 | 86 | -113 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 38 | 40 | 50 |
Equity in undistributed income from subsidiaries | -148 | -3 | -103 |
Losses on early extinguishment of debt | 6 | 0 | 137 |
Other | -44 | -15 | 45 |
Net effect of decrease (increase) in other assets | 19 | 15 | 23 |
Net effect of (decrease) increase in other liabilities | -3 | -60 | -178 |
Net cash provided by (used in) operating activities | 161 | 63 | -139 |
Cash flows from investing activities: | |||
Capital expenditures for property and equipment | -62 | -24 | -27 |
Proceeds from sale of subsidiary | 76 | ||
Cash contributions to subsidiaries | -29 | -39 | -26 |
Other | 0 | 4 | 3 |
Net cash (used in) provided by investing activities | -15 | -59 | -50 |
Cash flows from financing activities: | |||
Net proceeds from issuance of senior notes | 540 | 0 | 1,305 |
Payments on senior and springing lien notes | -940 | 0 | -1,174 |
Other | 68 | 2 | -21 |
Net cash provided by financing activities | -332 | 2 | 110 |
Increase (decrease) in cash and equivalents | -186 | 6 | -79 |
Cash and equivalents, beginning of period | 406 | 400 | 479 |
Cash and equivalents, end of period | $220 | $406 | $400 |
Condensed_Financial_Informatio2
Condensed Financial Information (Parent Company) Guarantees (Details) (Foreign Exchange Guarantee [Member], Parent Company [Member], USD $) | Dec. 31, 2014 |
Foreign Exchange Guarantee [Member] | Parent Company [Member] | |
Condensed Financial Information Parent Company Guarantees [Line Items] | |
Guarantor obligations, current carrying value | $0 |
Collateral Pledged Parent Company Guarantees | $0 |
Quarterly_Data_Unaudited_Detai
Quarterly Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total net revenue | $461 | $440 | $438 | $475 | $446 | $417 | $440 | $420 | $1,814 | $1,723 | $1,900 |
Net income (loss) | 41 | 86 | 69 | 97 | 58 | 47 | -54 | 35 | 293 | 86 | -113 |
Earnings (loss) per share: | |||||||||||
Basic (in dollars per share) | $0.14 | $0.30 | $0.24 | $0.34 | $0.20 | $0.17 | ($0.19) | $0.12 | $1.02 | $0.30 | ($0.39) |
Diluted (in dollars per share) | $0.14 | $0.29 | $0.24 | $0.33 | $0.20 | $0.16 | ($0.19) | $0.12 | $1 | $0.29 | ($0.39) |
Debt Instrument [Line Items] | |||||||||||
Losses on Early Extinguishment of Debt | 71 | 0 | 335 | ||||||||
Quarterly Financial Information Disclosure Details (Textuals) [Abstract] | |||||||||||
Impairment of goodwill | 142 | 0 | 142 | 0 | |||||||
Senior Notes Interest Bearing Six And Three Fourths Percent and Six Percent [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Losses on Early Extinguishment of Debt | $59 | ($59) |