Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Entity Registrant Name | E TRADE FINANCIAL CORP | ||
Entity Central Index Key | 1,015,780 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Common stock shares outstanding | 282,708,675 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 6.1 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue: | |||
Operating interest income | $ 1,215 | $ 1,279 | $ 1,207 |
Operating interest expense | (129) | (205) | (238) |
Net operating interest income | 1,086 | 1,074 | 969 |
Commissions | 424 | 456 | 420 |
Fees and service charges | 210 | 200 | 168 |
Principal transactions | 0 | 10 | 73 |
Gains (losses) on securities and other | (331) | 36 | 61 |
Other-than-temporary impairment (OTTI) | 0 | 0 | (1) |
Less: noncredit portion of OTTI recognized into (out of) other comprehensive income (loss) (before tax) | 0 | 0 | (2) |
Net impairment | 0 | 0 | (3) |
Other revenues | 39 | 38 | 35 |
Total non-interest income (loss) | 342 | 740 | 754 |
Total net revenue | 1,428 | 1,814 | 1,723 |
Provision (benefit) for loan losses | (40) | 36 | 143 |
Operating expense: | |||
Compensation and benefits | 466 | 412 | 363 |
Advertising and market development | 124 | 120 | 108 |
Clearing and servicing | 95 | 94 | 124 |
FDIC insurance premiums | 41 | 79 | 104 |
Professional services | 103 | 112 | 85 |
Occupancy and equipment | 88 | 79 | 73 |
Communications | 90 | 71 | 69 |
Depreciation and amortization | 81 | 78 | 89 |
Amortization of other intangibles | 20 | 22 | 24 |
Impairment of goodwill | 0 | 0 | 142 |
Restructuring and other exit activities | 17 | 8 | 28 |
Other operating expenses | 82 | 70 | 66 |
Total operating expense | 1,207 | 1,145 | 1,275 |
Income before other income (expense) and income tax expense (benefit) | 261 | 633 | 305 |
Other income (expense): | |||
Corporate interest expense | (65) | (113) | (114) |
Losses on early extinguishment of debt | (112) | (71) | 0 |
Other | 7 | 3 | 4 |
Total other income (expense) | (170) | (181) | (110) |
Income before income tax expense (benefit) | 91 | 452 | 195 |
Income tax expense (benefit) | (177) | 159 | 109 |
Net income | $ 268 | $ 293 | $ 86 |
Basic earnings per share (in dollars per share) | $ 0.92 | $ 1.02 | $ 0.30 |
Diluted earnings per share (in dollars per share) | $ 0.91 | $ 1 | $ 0.29 |
Shares used in computation of per share data: | |||
Basic (in thousands) | 290,762 | 288,705 | 286,991 |
Diluted (in thousands) | 295,011 | 294,103 | 292,589 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 268 | $ 293 | $ 86 | |
Available-for-sale securities: | ||||
Noncredit portion of OTTI reclassification (into) out of other comprehensive income (loss), net(1) | [1] | 0 | 0 | 1 |
Unrealized gains (losses), net(2) | [2] | (84) | 193 | (261) |
Reclassification into earnings, net(3) | [3] | (24) | (26) | (37) |
Net change from available-for-sale securities | (108) | 167 | (297) | |
Cash flow hedging instruments: | ||||
Unrealized gains (losses), net(4) | [4] | (10) | (39) | 67 |
Reclassification into earnings, net(5) | [5] | 271 | 76 | 87 |
Net change from cash flow hedging instruments | 261 | 37 | 154 | |
Foreign currency translation gains (losses), net | (3) | 0 | 0 | |
Other comprehensive income (loss) | 150 | 204 | (143) | |
Comprehensive income (loss) | $ 418 | $ 497 | $ (57) | |
[1] | Amount is net of benefit from income taxes of less than $1 million for the year ended December 31, 2013 | |||
[2] | Amounts are net of benefit from income taxes of $52 million for the year ended December 31, 2015, net of provision for income taxes of $117 million for the year ended December 31, 2014, and net of benefit from income taxes of $156 million for the year ended December 31, 2013. | |||
[3] | Amounts are net of provision for income taxes of $15 million, $16 million and $23 million for the years ended December 31, 2015, 2014 and 2013, respectively. | |||
[4] | Amounts are net of benefit from income taxes of $7 million and $29 million for the years ended December 31, 2015 and 2014, respectively, and net of provision for income taxes of $33 million for the year ended December, 2013. | |||
[5] | Amounts are net of benefit from income taxes of $168 million, $49 million and $52 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
CONSOLIDATED STATEMENT OF COMP4
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ (52) | $ 117 | $ (156) |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | 15 | 16 | 23 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (7) | (29) | 33 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax | $ (168) | $ (49) | (52) |
Maximum [Member] | |||
Income tax of noncredit portion of OTTI reclassification (into) out of other comprehensive income, net | $ 1 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and equivalents | $ 2,233 | $ 1,783 |
Cash required to be segregated under federal or other regulations | 1,057 | 555 |
Available-for-sale securities | 12,589 | 12,388 |
Held-to-maturity securities (fair value of $13,123 and $12,476 at December 31, 2015 and December 31, 2014, respectively) | 13,013 | 12,248 |
Receivables from brokers, dealers and clearing organizations | 520 | 884 |
Margin receivables | 7,398 | 7,675 |
Loans receivable, net (net of allowance for loan losses of $353 and $404 at December 31, 2015 and December 31, 2014, respectively) | 4,613 | 5,979 |
Property and equipment, net | 236 | 245 |
Goodwill | 1,792 | 1,792 |
Other intangibles, net | 174 | 194 |
Deferred tax assets, net | 1,033 | 951 |
Other assets | 769 | 836 |
Total assets | 45,427 | 45,530 |
Liabilities: | ||
Deposits | 29,445 | 24,890 |
Payables to brokers, dealers and clearing organizations | 1,576 | 1,699 |
Customer payables | 6,544 | 6,455 |
Other borrowings | 491 | 4,971 |
Corporate debt | 997 | 1,366 |
Other liabilities | 575 | 774 |
Total liabilities | $ 39,628 | $ 40,155 |
Commitments and contingencies (see Note 19) | ||
Shareholders’ equity: | ||
Common stock, $0.01 par value, shares authorized: 400,000,000 at December 31, 2015 and 2014; shares issued and outstanding: 291,335,241 and 289,272,576 at December 31, 2015 and 2014, respectively | $ 3 | $ 3 |
Additional paid-in-capital | 7,356 | 7,350 |
Accumulated deficit | (1,461) | (1,729) |
Accumulated other comprehensive loss | (99) | (249) |
Total shareholders’ equity | 5,799 | 5,375 |
Total liabilities and shareholders’ equity | $ 45,427 | $ 45,530 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Held-to-maturity securities, fair value | $ 13,123 | $ 12,476 |
Allowance for loan losses | $ 353 | $ 404 |
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) | 291,335,241 | 289,272,576 |
Common stock shares outstanding (in shares) | 291,335,241 | 289,272,576 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
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 | 86 | 86 | |||
Other comprehensive income (loss) | (143) | (143) | |||
Conversion of convertible debentures | 0 | ||||
Exercise of stock options and related tax effects | (4) | $ 0 | (4) | ||
Exercise of stock options and related tax effects, shares | 0 | ||||
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 | 293 | 293 | |||
Other comprehensive income (loss) | 204 | 204 | |||
Conversion of convertible debentures | $ 5 | $ 0 | 5 | ||
Conversion of convertible debentures, shares | 0.5 | 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 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 268 | 268 | |||
Other comprehensive income (loss) | 150 | 150 | |||
Conversion of convertible debentures | $ 30 | $ 0 | 30 | ||
Conversion of convertible debentures, shares | 2.9 | 3 | |||
Exercise of stock options and related tax effects | $ 2 | $ 0 | 2 | ||
Exercise of stock options and related tax effects, shares | 0 | ||||
Repurchases of common stock | (50) | $ 0 | (50) | ||
Repurchases of common stock, shares | (2) | ||||
Issuance of restricted stock, net of forfeitures and retirements to pay taxes | (10) | $ 0 | (10) | ||
Issuance of restricted stock, net of forfeitures and retirements to pay taxes, shares | 1 | ||||
Share-based compensation | 34 | 34 | |||
Balance, at Dec. 31, 2015 | $ 5,799 | $ 3 | $ 7,356 | $ (1,461) | $ (99) |
Balance, (in shares) at Dec. 31, 2015 | 291 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 268 | $ 293 | $ 86 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision (benefit) for loan losses | (40) | 36 | 143 |
Depreciation and amortization (including discount amortization and accretion) | 325 | 331 | 395 |
Losses (gains) on securities and other | 331 | (36) | (61) |
Impairment of goodwill | 0 | 0 | 142 |
Losses on early extinguishment of debt | 37 | 6 | 0 |
Share-based compensation | 34 | 24 | 20 |
Deferred taxes expense (benefit) | (176) | 155 | 107 |
Other | (6) | (2) | (1) |
Net effect of changes in assets and liabilities: | |||
Decrease (increase) in cash required to be segregated under federal or other regulations | (502) | 511 | (689) |
Decrease (increase) in receivables from brokers, dealers and clearing organizations | 364 | (24) | (182) |
Decrease (increase) in margin receivables | 277 | (1,322) | (549) |
Increase (decrease) in payables to brokers, dealers and clearing organizations | (123) | 593 | 227 |
Increase in customer payables | 89 | 145 | 1,345 |
Proceeds from sale and collection of loans held-for-sale | 0 | 11 | 15 |
Decrease (increase) in other assets | (22) | (132) | 215 |
Increase (decrease) in other liabilities | (24) | 112 | (96) |
Net cash provided by operating activities | 832 | 701 | 1,117 |
Cash flows from investing activities: | |||
Purchases of available-for-sale securities | (6,150) | (1,564) | (7,042) |
Proceeds from sales of available-for-sale securities | 3,905 | 1,855 | 3,856 |
Proceeds from maturities of and principal payments on available-for-sale securities | 1,667 | 1,468 | 2,407 |
Purchases of held-to-maturity securities | (2,614) | (3,209) | (2,527) |
Proceeds from maturities of and principal payments on held-to-maturity securities | 1,788 | 1,144 | 1,828 |
Proceeds from sale of loans | 40 | 813 | 0 |
Net decrease in loans receivable | 1,337 | 1,273 | 1,724 |
Capital expenditures for property and equipment | (70) | (87) | (47) |
Proceeds and cash transferred from sale of G1 Execution Services, LLC | 0 | 67 | 0 |
Proceeds from sale of real estate owned and repossessed assets | 28 | 37 | 62 |
Net cash flow from derivatives hedging assets | (2) | (15) | 19 |
Other | 73 | (69) | 6 |
Net cash provided by investing activities | 2 | 1,713 | 286 |
Cash flows from financing activities: | |||
Net increase (decrease) in deposits | 4,555 | (1,081) | (2,422) |
Net increase (decrease) in securities sold under agreements to repurchase | (3,590) | (871) | 88 |
Advances from FHLB | 960 | 730 | 2,180 |
Payments on advances from FHLB | (1,880) | (730) | (2,180) |
Net proceeds from issuance of senior notes | 460 | 540 | 0 |
Payments on senior notes | (800) | (940) | 0 |
Payments on trust preferred securities | (15) | 0 | 0 |
Repurchases of common stock | (50) | 0 | 0 |
Net cash flow from derivatives hedging liabilities | (16) | (170) | 5 |
Other | (8) | 53 | 2 |
Net cash used in financing activities | (384) | (2,469) | (2,327) |
Increase (decrease) in cash and equivalents | 450 | (55) | (924) |
Cash and equivalents, beginning of period | 1,783 | 1,838 | 2,762 |
Cash and equivalents, end of period | 2,233 | 1,783 | 1,838 |
Supplemental Disclosures [Abstract] | |||
Cash paid for interest | 212 | 318 | 277 |
Cash paid for income taxes, net of refunds | 8 | 0 | 2 |
Non-cash investing and financing activities: | |||
Transfers of loans held-for-investment to loans held-for-sale | 39 | 795 | 41 |
Transfers from loans to other real estate owned and repossessed assets | 27 | 53 | 75 |
Transfers from other real estate owned and repossessed assets to loans | 0 | 16 | 0 |
Conversion of convertible debentures to common stock | 30 | 5 | 0 |
Reclassification of market making business assets and liabilities to business held-for-sale | $ 0 | $ 0 | $ 79 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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, wholly-owned subsidiaries are described below: • E*TRADE Securities is a registered broker-dealer and is the primary provider of brokerage products and services to the Company’s customers; • E*TRADE Clearing 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; • 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 the provider of software and services for managing equity compensation plans to the Company's corporate customers. As of December 31, 2015 , the Company's two U.S. broker-dealers, E*TRADE Clearing and E*TRADE Securities, were no longer operating subsidiaries of E*TRADE Bank. E*TRADE Securities was moved out from under E*TRADE Bank in February 2015 and E*TRADE Clearing was moved out from under E*TRADE Bank in July 2015. This revised organizational structure provides increased capital flexibility as it enables the Company to dividend excess regulatory capital at the broker-dealers to the parent company with proper regulatory notifications. 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 equity 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 U.S. GAAP. Intercompany accounts and transactions are eliminated in consolidation. 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 updated the presentation of its consolidated balance sheet and income statement line items, as follows, primarily as a result of the change in composition of its balance sheet after the termination of its wholesale funding obligations. Prior periods have been reclassified to conform to the current period presentation: • Reclassified the revenue earned on customer assets held by third parties from operating interest income to fees and service charges; • Reclassified certain receivables from other assets to receivables from brokers, dealers, and clearing organizations; • Reclassified the Company’s investment in FHLB stock to other assets; • Reclassified net deferred tax assets from other assets to deferred tax assets, net; • Reclassified certain payables from other liabilities to payables to brokers, dealers, and clearing organizations; • Renamed FHLB advances and other borrowings to other borrowings; and • Reclassified securities sold under agreements to repurchase to other borrowings. 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 is the primary source of corporate interest expense. Similarly, the Company reports corporate gains (losses) on sales of investments separately from gains (losses) on securities and other . 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 (losses) on securities and other are the result of activities in the Company’s operations, namely its balance sheet management segment. Corporate gains (losses) on sales of investments are reported in other income (expense) on the consolidated statement of income. 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; asset impairment, including goodwill impairment and OTTI; estimates of effective tax rates, deferred taxes and valuation allowance; accounting for derivative instruments; and fair value measurements. Financial Statement Descriptions and Related Accounting Policies 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 $1.6 billion and $0.9 billion at December 31, 2015 and 2014, 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 is also recognized in operating interest income using the effective interest method over the contractual life of the security and is adjusted to reflect actual prepayments. Realized gains and losses on available-for-sale debt and equity securities, other than OTTI, are included in the gains (losses) on securities and other 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 is also recognized in operating interest income using the effective interest method over the contractual life of the security and is adjusted to reflect actual prepayments. 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. Receivables from and Payables to Brokers, Dealers and Clearing Organizations —Receivables from brokers, dealers and clearing organizations include deposits paid for securities borrowed, clearing deposits and net receivables arising from unsettled trades. Payables to brokers, dealers and clearing organizations include deposits received for securities loaned and net payables arising from unsettled trades. Deposits paid for securities borrowed and deposits received for securities loaned are recorded at the amount of cash collateral advanced or received. Deposits paid for securities borrowed transactions require the Company to deposit cash with the lender. With respect to deposits received for securities loaned, the Company receives collateral in the form of cash in an amount generally in excess of the market value of the securities loaned. Interest income and interest expense are recorded on an accrual basis. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded, as necessary. 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 $10.1 billion and $10.8 billion at December 31, 2015 and December 31, 2014 , respectively. Of this amount, $2.5 billion and $2.9 billion had been pledged or sold in connection with securities loans and deposits with clearing organizations at December 31, 2015 and December 31, 2014 , 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. In determining the adequacy of the allowance, the Company performs ongoing evaluations of the loan portfolio and loss forecasting assumptions. As of December 31, 2015 , the allowance for loan losses was $353 million on $4.9 billion of total loans receivable designated as held-for-investment. For loans that are not TDRs, the Company established a general allowance and evaluated the adequacy of the allowance for loan losses by loan portfolio segment: one- to four-family, home equity and consumer and other. For modified loans accounted for as TDRs that are valued using the discounted cash flow model, the Company established a specific allowance by forecasting losses, including economic concessions to borrowers, over the estimated remaining life of these loans. The estimate of the allowance for loan losses continues to be 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. During the year ended December 31, 2015 , the Company implemented a new loss forecasting model that better aligned to our run-off one- to four-family and home equity loan portfolios with loans approaching amortization resets. While there were no material changes in assumptions and methodologies in the new model and the implementation did not have a material impact on the allowance for loan losses, the implementation process triggered a re-evaluation of the time period of forecasted loan losses included in the general allowance. Based on reviews of recent loan performance, current economic conditions and their impact on borrower behavior and the timing of default in the new model, the Company extended the loss emergence period from 12 months to 18 months for both portfolios. The extended emergence period resulted in approximately $40 million of additional allowance for loan losses as of December 31, 2015. The new loss forecasting model continues to be sensitive to key risk factors within the one- to four-family and home equity loan portfolios, which include but are not limited to loan type, delinquency history, LTV/CLTV ratio and borrowers’ credit scores and the forecasted loan losses are estimated based on these types of loan-level attributes. The Company utilizes historical mortgage loan performance data to develop the forecast of delinquency and default for these risk segments. During the year ended December 31, 2015 , the Company also made the following enhancements to its quantitative allowance methodology for identifying higher risk loans in one- to four-family and home equity loan portfolios due to newly available performance information. These enhancements resulted in approximately $45 million of additional allowance for loan losses as of December 31, 2015 : • The Company extended the period of our forecasted loan losses captured within the general allowance to include the total probable loss over the remaining life on a subset of higher risk interest-only loans in the one- to four-family loan portfolio. • The Company further refined the criteria utilized in identifying higher risk home equity lines of credit for which the total probable loss over the remaining life is included within the general allowance. 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 Company utilizes a qualitative factor framework whereby, on a quarterly basis, management assesses the risk associated with three primary sets of factors: external factors, internal factors, and portfolio specific factors. 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 quantitative component of the general allowance. The total qualitative component was $13 million and $37 million as of December 31, 2015 and 2014 , respectively. 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. An impairment loss is recognized if the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. 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. The Company currently does not have any intangible assets with indefinite lives other than goodwill. The Company evaluates 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 9—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 Method, Cost Method and Other Investments —The Company’s equity method, cost method and other 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. These 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 other income (expense) line item in the consolidated statement of income. The Company’s other investments include those accounted for using the proportional amortization method. 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 other income (expense) line item equal to the difference between the expected realizable value and the carrying value of the investment. 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. As a condition of its membership in the FHLB, the Company is required to maintain a FHLB stock investment which was $15 million at December 31, 2015. The Company accounts for its investment in FHLB stock as a cost method investment. FHLB advances, included in the other borrowings line item, is a wholesale funding source of E*TRADE Bank. 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, a 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 14—Income Taxes . 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. Other Borrowings —Other borrowings includes securities sold under agreements to repurchase, FHLB advances, borrowings from E*TRADE Clearing's lines of credit and TRUPs. 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. Comprehensive Income (Loss) —The Company’s comprehensive income (loss) is composed of net income, 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 (losses) on securities and other line item in the consolidated statement of income. 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 (losses) on securities and other line item in the consolidated statement of income. For additional information on derivative instruments and hedging activities, see Note 7—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 3—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 from 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 from securities lending activities and other balances. Operating interest expense also includes the impact of the Company’s der |
Operating Interest Income and O
Operating Interest Income and Operating Interest Expense | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Operating interest income: Loans $ 230 $ 297 $ 395 Available-for-sale securities 244 288 279 Held-to-maturity securities 346 328 255 Margin receivables 276 264 224 Securities borrowed and other 119 102 54 Total operating interest income (1) 1,215 1,279 1,207 Operating interest expense: Securities sold under agreements to repurchase (2) (69 ) (123 ) (148 ) FHLB advances and other borrowings (2) (48 ) (65 ) (68 ) Deposits (4 ) (8 ) (13 ) Customer payables and other (8 ) (9 ) (9 ) Total operating interest expense (3) (129 ) (205 ) (238 ) Net operating interest income $ 1,086 $ 1,074 $ 969 (1) Operating interest income reflects $(42) million , $(31) million , and $(16) million of expense on hedges that qualify for hedge accounting for the years ended December 31, 2015, 2014, and 2013, respectively. (2) The Company terminated $4.4 billion of repurchase agreements and FHLB advances in 2015. See Note 12—Other Borrowings for additional information. (3) Operating interest expense reflects $(74) million , $(132) million , and $(153) million of expense on hedges that qualify for hedge accounting for the years ended December 31, 2015, 2014, and 2013, respectively. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2015 | |
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 Mortgage-backed Securities The Company’s mortgage-backed securities portfolio primarily comprised agency mortgage-backed securities and CMOs. Agency mortgage-backed securities and CMOs are gu aranteed by U.S. government sponsored enterprises and federal agencies. The weighted average coupon rates for the available-for-sale mortgage-backed securities at December 31, 2015 are shown in the following table: Weighted Average Coupon Rate Agency mortgage-backed securities 2.85 % Agency CMOs 2.73 % 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 debentures were classified as Level 2 of the fair value hierarchy as they were based on quoted market prices observable in the marketplace. The Company's fair value level classification of U.S. Treasuries is based on the original maturity dates of the securities and whether the securities are the most recent issuances of a given maturity. U.S. Treasuries with original maturities less than one year are classified as Level 1. U.S. Treasuries with original maturities longer than one year are classified as Level 1 if they represent the most recent issuance of a given maturity; otherwise, these securities are classified as Level 2. 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, 2015 . 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. 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 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 ("BPOs"), 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. BPOs are a type of valuation input used to determine the estimated property values of our collateral dependent mortgage loans. In addition, when available, BPOs are used in various loss mitigation, default management and portfolio monitoring efforts, allowance for loan losses modeling and CLTV estimates. The Company validates BPOs through quality control measures, including comparison to tax records, comparable sale and listing data, prior BPO values and original appraisals. The Company does not adjust BPO values but will only utilize BPOs that pass validation. Real Estate Owned 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 valuations included unobservable 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, 2015 and 2014: Unobservable Inputs Average Range December 31, 2015 Loans receivable: One- to four-family Appraised value $ 422,900 $8,500-$1,900,000 Home equity Appraised value $ 274,100 $9,000-$1,300,000 Real estate owned Appraised value $ 330,700 $26,500-$1,250,000 December 31, 2014 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 Recurring and Nonrecurring Fair Value Measurements Assets and liabilities measured at fair value at December 31, 2015 and 2014 are summarized in the following tables (dollars in millions): Level 1 Level 2 Level 3 Total Fair Value December 31, 2015: Recurring fair value measurements: Assets Available-for-sale securities: Debt securities: Agency mortgage-backed securities and CMOs $ — $ 11,763 $ — $ 11,763 Agency debentures — 557 — 557 U.S. Treasuries — 143 — 143 Agency debt securities — 55 — 55 Municipal bonds — 35 — 35 Corporate bonds — 4 — 4 Total debt securities — 12,557 — 12,557 Publicly traded equity securities 32 — — 32 Total available-for-sale securities 32 12,557 — 12,589 Other assets: Derivative assets (1) — 10 — 10 Total assets measured at fair value on a recurring basis (2) $ 32 $ 12,567 $ — $ 12,599 Liabilities Derivative liabilities (1) $ — $ 55 $ — $ 55 Total liabilities measured at fair value on a recurring basis (2) $ — $ 55 $ — $ 55 Nonrecurring fair value measurements: Loans receivable: One- to four-family $ — $ — $ 41 $ 41 Home equity — — 22 22 Total loans receivable — — 63 63 Real estate owned — — 26 26 Total assets measured at fair value on a nonrecurring basis (3) $ — $ — $ 89 $ 89 (1) All derivative assets and liabilities were interest rate contracts at December 31, 2015 . Information related to derivative instruments is detailed in Note 7—Accounting for Derivative Instruments and Hedging Activities . (2) Assets and liabilities measured at fair value on a recurring basis represented 28% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2015 . (3) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2015 , and for which a fair value measurement was recorded during the period. Level 1 Level 2 Level 3 Total Fair Value December 31, 2014: Recurring fair value measurements: Assets Available-for-sale securities: Debt securities: Agency 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 7—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. 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, 2015 , 2014 and 2013 (dollars in millions): December 31, 2015 2014 2013 One- to four-family $ 7 $ 10 $ 40 Home equity 14 30 58 Total losses on loans receivable measured at fair value $ 21 $ 40 $ 98 Losses (gains) on real estate owned measured at fair value $ — $ (2 ) $ (1 ) 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 transfers between Level 1 and 2 during the years ended December 31, 2015 and 2014 . Recurring Fair Value Measurements Categorized within Level 3 At both December 31, 2015 and 2014, no assets or liabilities measured at fair value on a recurring basis were categorized within Level 3 of the fair value hierarchy. 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, 2015 and December 31, 2014 (dollars in millions): December 31, 2015 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash and equivalents $ 2,233 $ 2,233 $ — $ — $ 2,233 Cash required to be segregated under federal or other regulations $ 1,057 $ 1,057 $ — $ — $ 1,057 Held-to-maturity securities: Agency mortgage-backed securities and CMOs $ 10,353 $ — $ 10,444 $ — $ 10,444 Agency debentures 127 — 125 — 125 Agency debt securities 2,523 — 2,544 — 2,544 Other non-agency debt securities 10 — — 10 10 Total held-to-maturity securities $ 13,013 $ — $ 13,113 $ 10 $ 13,123 Receivables from brokers, dealers and clearing organizations $ 520 $ — $ 520 $ — $ 520 Margin receivables $ 7,398 $ — $ 7,398 $ — $ 7,398 Loans receivable, net: One- to four-family $ 2,465 $ — $ — $ 2,409 $ 2,409 Home equity 1,810 — — 1,660 1,660 Consumer and other 338 — — 343 343 Total loans receivable, net (1) $ 4,613 $ — $ — $ 4,412 $ 4,412 Liabilities Deposits $ 29,445 $ — $ 29,444 $ — $ 29,444 Payables to brokers, dealers and clearing organizations $ 1,576 $ — $ 1,576 $ — $ 1,576 Customer payables $ 6,544 $ — $ 6,544 $ — $ 6,544 Other borrowings: Securities sold under agreements to repurchase $ 82 $ — $ 82 $ — $ 82 Trust preferred securities $ 409 $ — $ — $ 252 $ 252 Total other borrowings $ 491 $ — $ 82 $ 252 $ 334 Corporate debt $ 997 $ — $ 1,055 $ — $ 1,055 (1) The carrying value of loans receivable, net includes the allowance for loan losses of $353 million and loans that are valued at fair value on a nonrecurring basis at December 31, 2015 . December 31, 2014 Carrying Value Level 1 Level 2 Level 3 Total 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 Receivables from brokers, dealers and clearing organizations $ 884 $ — $ 884 $ — $ 884 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 Liabilities Deposits $ 24,890 $ — $ 24,890 $ — $ 24,890 Payables to brokers, dealers and clearing organizations $ 1,699 $ — $ 1,699 $ — $ 1,699 Customer payables $ 6,455 $ — $ 6,455 $ — $ 6,455 Other borrowings: Securities sold under agreements to repurchase $ 3,672 $ — $ 3,681 $ — $ 3,681 FHLB advances and trust preferred securities $ 1,299 $ — $ 922 $ 252 $ 1,174 Total other borrowings $ 4,971 $ — $ 4,603 $ 252 $ 4,855 Corporate debt $ 1,366 $ — $ 1,491 $ — $ 1,491 (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 . The fair value measurement techniques for financial instruments not carried at fair value on the consolidated balance sheet at December 31, 2015 and 2014 are summarized as follows: Cash and equivalents, cash required to be segregated under federal or other regulations, receivables from brokers, dealers and clearing organizations, margin receivables, payables to brokers, dealers and clearing organizations and customer payables —Due to their short term nature, 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. Although the market for one- to four-family and home equity loan portfolios has improved, given the lack of observability of valuation inputs, 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. 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, 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 and FHLB advances —Fair value for securities sold under agreements to repurchases and FHLB advances was determined by discounting future cash flows using discount factors derived from current observable rates implied for other similar instruments with similar remaining maturities at December 31, 2015 and 2014. The Company terminated its repurchase agreements and FHLB advances during 2015. See Note 12—Other Borrowings for additional information. Trust preferred securities —For subordinated debentures, fair value is estimated by discounting future cash flows at the yield implied by dealer pricing quotes. Corporate debt —For interest-bearing 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; therefore, 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 eight years. At December 31, 2015 , the Company had $70 million of unfunded commitments to extend credit. Information related to such commitments and contingent liabilities is detailed in Note 19—Commitments, Contingencies and Other Regulatory Matters . |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
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. These activities 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, 2015 and 2014 (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, 2015 Assets: Deposits paid for securities borrowed (1)(5) $ 120 $ — $ 120 $ (94 ) $ (18 ) $ 8 Total $ 120 $ — $ 120 $ (94 ) $ (18 ) $ 8 Liabilities: Deposits received for securities loaned (2)(6) 1,535 — 1,535 (94 ) (1,314 ) 127 Repurchase agreements (2)(4) 82 — 82 — (81 ) 1 Derivative liabilities (2)(3) 11 — 11 — (11 ) — Total $ 1,628 $ — $ 1,628 $ (94 ) $ (1,406 ) $ 128 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: Deposits received for securities loaned (2)(6) 1,649 — 1,649 (188 ) (1,332 ) 129 Repurchase agreements (2)(4) 3,672 — 3,672 — (3,671 ) 1 Derivative liabilities (2)(3) 30 — 30 (15 ) (15 ) — Total $ 5,351 $ — $ 5,351 $ (203 ) $ (5,018 ) $ 130 (1) Net amount of deposits paid for securities borrowed and derivative assets presented in the consolidated balance sheet are reflected in the receivables from brokers, dealers and clearing organizations and other assets line items, respectively. (2) Net amount of deposits received for securities loaned, repurchase agreements and derivative liabilities presented in the consolidated balance sheet are reflected in the payables to brokers, dealers and clearing organizations, other borrowings and other liabilities line items, respectively. (3) Excludes net accrued interest payable of $3 million and $7 million at December 31, 2015 and 2014 , 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 for December 31, 2015 and available-for-sale securities at fair value and held-to-maturity securities at amortized cost for December 31, 2014 . (5) Included in the gross amounts of deposits paid for securities borrowed was $34 million and $278 million at December 31, 2015 and 2014 , 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 counterparties under the Company’s master securities loan agreements. (6) Included in the gross amounts of deposits received for securities loaned was $722 million and $1.1 billion at December 31, 2015 and 2014 , 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 counterparties under the Company’s master securities loan agreements. Certain types of derivatives that the Company trades are subject to derivatives clearing agreements ("cleared derivatives contracts") under the Dodd-Frank Act. 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, 2015 and 2014 , the Company had $10 million and $0 , respectively, in derivative assets of cleared derivatives contracts and $44 million and $36 million , respectively, in derivative liabilities of cleared derivatives contracts. Securities Lending Transactions The Company lends customer equity securities to other broker-dealers in connection with its securities lending activities and receives cash as collateral for the securities loaned. The Company records deposits received for securities loaned in payables to brokers, dealers and clearing organizations on the consolidated balance sheet. At December 31, 2015 , the Company recorded a gross obligation of $1.5 billion as deposits received for securities loaned on its consolidated balance sheet. Securities lending transactions have overnight or continuous remaining contractual maturities. Securities lending transactions expose the Company to counterparty credit risk and market risk associated with the securities loaned under these transactions. To manage the counterparty risk, the Company maintains internal standards for approving counterparties, reviews and analyzes the credit rating of each counterparty, and monitors its positions with each counterparty on an ongoing basis. In addition, for certain of the Company's securities lending transactions, the Company uses a program with a clearing organization that guarantees the return of securities to the Company. The Company manages its exposure to market risk associated with the securities loaned under these transactions by using collateral arrangements that require additional collateral to be obtained from or excess collateral to be returned to the counterparties based on changes in market value, to maintain specified collateral levels. |
Available-for-Sale and Held-to-
Available-for-Sale and Held-to-Maturity Securities | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 are shown in the following tables (dollars in millions): Amortized Cost Gross Unrealized / Unrecognized Gains Gross Unrealized / Unrecognized Losses Fair Value December 31, 2015: Available-for-sale securities: Debt securities: Agency mortgage-backed securities and CMOs $ 11,888 $ 41 $ (166 ) $ 11,763 Agency debentures 551 18 (12 ) 557 U.S. Treasuries 147 — (4 ) 143 Agency debt securities 55 — — 55 Municipal bonds 35 — — 35 Corporate bonds 5 — (1 ) 4 Total debt securities 12,681 59 (183 ) 12,557 Publicly traded equity securities (1) 33 — (1 ) 32 Total available-for-sale securities $ 12,714 $ 59 $ (184 ) $ 12,589 Held-to-maturity securities: Agency residential mortgage-backed securities and CMOs $ 10,353 $ 149 $ (58 ) $ 10,444 Agency debentures 127 — (2 ) 125 Agency debt securities 2,523 34 (13 ) 2,544 Other non-agency debt securities 10 — — 10 Total held-to-maturity securities $ 13,013 $ 183 $ (73 ) $ 13,123 December 31, 2014: Available-for-sale securities: Debt securities: Agency 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 (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, 2015 are shown below (dollars in millions): Amortized Cost Fair Value Available-for-sale debt securities: Due within one year $ — $ — Due within one to five years 41 41 Due within five to ten years 2,408 2,362 Due after ten years 10,232 10,154 Total available-for-sale debt securities $ 12,681 $ 12,557 Held-to-maturity debt securities: Due within one year $ 43 $ 43 Due within one to five years 1,166 1,203 Due within five to ten years 3,611 3,643 Due after ten years 8,193 8,234 Total held-to-maturity debt securities $ 13,013 $ 13,123 At December 31, 2015 , the Company pledged $17 million of available-for-sale debt securities and $0.7 billion of held-to-maturity debt securities as collateral for derivatives and other purposes. At December 31, 2014 , the Company pledged $1.6 billion of available-for-sale debt securities and $3.1 billion of held-to-maturity debt securities as collateral for repurchase agreements, derivatives and other purposes. The decrease in the amount of pledged debt securities was a result of the termination of the wholesale funding obligations during 2015. 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, 2015 and 2014 (dollars in millions): Less than 12 Months 12 Months or More Total Fair Value Unrealized / Unrecognized Losses Fair Value Unrealized / Unrecognized Losses Fair Value Unrealized / Unrecognized Losses December 31, 2015: Available-for-sale securities: Debt securities: Agency mortgage-backed securities and CMOs $ 6,832 $ (88 ) $ 2,496 $ (78 ) $ 9,328 $ (166 ) Agency debentures 329 (12 ) 9 — 338 (12 ) U.S. Treasuries 143 (4 ) — — 143 (4 ) Agency debt securities 55 — — — 55 — Municipal bonds — — 15 — 15 — Corporate bonds — — 4 (1 ) 4 (1 ) Publicly traded equity securities 32 (1 ) — — 32 (1 ) Total temporarily impaired available-for-sale securities $ 7,391 $ (105 ) $ 2,524 $ (79 ) $ 9,915 $ (184 ) Held-to-maturity securities: Agency mortgage-backed securities and CMOs $ 2,807 $ (25 ) $ 1,495 $ (33 ) $ 4,302 $ (58 ) Agency debentures 114 (2 ) — — 114 (2 ) Agency debt securities 1,006 (10 ) 134 (3 ) 1,140 (13 ) Total temporarily impaired held-to-maturity securities $ 3,927 $ (37 ) $ 1,629 $ (36 ) $ 5,556 $ (73 ) December 31, 2014: Available-for-sale securities: Debt securities: Agency 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 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 ) The Company does not believe that any individual unrealized loss in the available-for-sale portfolio or unrecognized loss in the held-to-maturity portfolio as of December 31, 2015 represents a credit loss. 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, 2015 . There were no impairment losses recognized in earnings on available-for-sale or held-to-maturity securities during the years ended December 31, 2015 and 2014, respectively. There was a net impairment of $3 million recognized during the year ended December 31, 2013. Included within the Company's securities portfolios are securities that have been written-down to a zero carrying value. The credit loss component of debt securities held by the Company that had a noncredit loss component previously recognized in other comprehensive income was $152 million at both December 31, 2015 and 2014 and $166 million as of December 31, 2013. Of these amounts, $123 million at both December 31, 2015 and 2014 and $121 million as of December 31, 2013 relates to 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 (Losses) on Securities and Other The detailed components of the gains (losses) on securities and other line item on the consolidated statement of income for the years ended December 31, 2015 , 2014 and 2013 are as follows (dollars in millions): Year Ended December 31, 2015 2014 2013 Reclassification of deferred losses on cash flow hedges $ (370 ) $ — $ — Hedge ineffectiveness (1 ) (10 ) 1 Gains on available-for-sale securities, net: Gains on available-for-sale securities 58 $ 42 $ 69 Losses on available-for-sale securities (20 ) — (8 ) Subtotal 38 42 61 Gains (losses) on loans, net 2 4 (1 ) Gains (losses) on securities and other $ (331 ) $ 36 $ 61 Gains (losses) on securities and other were $(331) million for the year ended December 31, 2015 compared to $36 million for the same period in 2014 . Gains (losses) on securities and other for the year ended December 31, 2015 included $370 million of losses reclassified from accumulated comprehensive loss related to cash flow hedges. Gains (losses) on securities and other for the year ended December 31, 2014 included a gain of $7 million on the sale of one- to four-family loans modified as TDRs and a gain of $6 million recognized on the sale of available-for-sale non-agency CMOs. See Note 12—Other Borrowings for additional information. |
Loans Receivable, Net
Loans Receivable, Net | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS RECEIVABLE, NET | LOANS RECEIVABLE, NET Loans receivable, net at December 31, 2015 and 2014 are summarized as follows (dollars in millions): December 31, 2015 2014 One- to four-family $ 2,488 $ 3,060 Home equity 2,114 2,834 Consumer and other 341 455 Total loans receivable 4,943 6,349 Unamortized premiums, net 23 34 Allowance for loan losses (353 ) (404 ) Total loans receivable, net $ 4,613 $ 5,979 At December 31, 2015 , the Company pledged $4.2 billion and $0.3 billion of loans as collateral to the FHLB and Federal Reserve Bank, respectively. 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. The following table presents 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 by loan class at December 31, 2015 and 2014 (dollars in millions): Recorded Investment Allowance for Loan Losses December 31, December 31, 2015 2014 2015 2014 Collectively evaluated for impairment: One- to four-family $ 2,219 $ 2,764 $ 31 $ 18 Home equity 1,915 2,625 255 310 Consumer and other 344 461 6 10 Total collectively evaluated for impairment 4,478 5,850 292 338 Individually evaluated for impairment: One- to four-family 286 316 9 9 Home equity 202 217 52 57 Total individually evaluated for impairment 488 533 61 66 Total $ 4,966 $ 6,383 $ 353 $ 404 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, borrowers’ current credit scores, housing prices, loan vintage and geographic location of the property. The Company believes LTV/CLTV ratios and credit scores are the key factors in determining future loan performance. 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, 2015 and 2014 (dollars in millions): One- to Four-Family Home Equity December 31, December 31, Current LTV/CLTV (1) 2015 2014 2015 2014 <=80% $ 1,519 $ 1,757 $ 843 $ 1,081 80%-100% 609 807 549 755 100%-120% 227 311 420 557 >120% 133 185 302 441 Total mortgage loans receivable $ 2,488 $ 3,060 $ 2,114 $ 2,834 Average estimated current LTV/CLTV (2) 77 % 79 % 90 % 92 % Average LTV/CLTV at loan origination (3) 71 % 71 % 81 % 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 home equity installment loans and maximum available line for home equity lines of credit. One- to Four-Family Home Equity December 31, December 31, Current FICO (1) 2015 2014 2015 2014 >=720 $ 1,423 $ 1,734 $ 1,069 $ 1,487 719 - 700 246 296 222 292 699 - 680 198 260 183 238 679 - 660 150 197 152 203 659 - 620 198 237 203 258 <620 273 336 285 356 Total mortgage loans receivable $ 2,488 $ 3,060 $ 2,114 $ 2,834 (1) FICO scores are updated on a quarterly basis; however, there were approximately $39 million and $49 million of one- to four-family loans at December 31, 2015 and 2014 , respectively, and $3 million and $4 million of home equity loans, respectively, for which the updated FICO scores were not available. For these loans, the current FICO distribution included the most recent FICO scores where available, otherwise the original FICO score was used. 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, 2015 , 39% of the Company's one- to four-family portfolio was not yet amortizing. However, during the year ended December 31, 2015 , approximately 15% of these borrowers made voluntary annual principal payments of at least $2,500 and 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 13% 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, 2015 . The home equity loan portfolio consists of approximately 18% of home equity installment loans and approximately 82% of home equity lines of credit at December 31, 2015 . 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 4% of this portfolio will require the borrowers to repay the loan in full at the end of the draw period. At December 31, 2015 , 61% 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, 2015 , approximately 40% of the borrowers 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, 2015 : Period of Conversion to Amortizing Loan % of One- to Four-Family Portfolio % of Home Equity Line of Credit Portfolio Already amortizing 61% 39% Through December 31, 2016 17% 45% Year ending December 31, 2017 22% 15% Year ending December 31, 2018 or later —% 1% Approximately 37% and 38% of the Company’s mortgage loans receivable were concentrated in California at December 31, 2015 and 2014 , respectively. No other state had concentrations of mortgage loans that represented 10% or more of the Company’s mortgage loans receivable at December 31, 2015 and 2014 . Delinquent Loans The following table shows total loans receivable by delinquency category at December 31, 2015 and 2014 (dollars in millions): Current 30-89 Days Delinquent 90-179 Days Delinquent 180+ Days Delinquent Total December 31, 2015 One- to four-family $ 2,279 $ 72 $ 26 $ 111 $ 2,488 Home equity 1,978 52 31 53 2,114 Consumer and other 334 6 1 — 341 Total loans receivable $ 4,591 $ 130 $ 58 $ 164 $ 4,943 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 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. The following table shows the comparative data for nonperforming loans at December 31, 2015 and 2014 (dollars in millions): December 31, 2015 2014 One- to four-family $ 263 $ 294 Home equity 154 165 Consumer and other 1 1 Total nonperforming loans receivable $ 418 $ 460 Real Estate Owned and Loans with Formal Foreclosure Proceedings in Process At December 31, 2015 and 2014 , the Company held $27 million and $36 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 $108 million and $107 million of loans for which formal foreclosure proceedings were in process at December 31, 2015 and 2014 , respectively. Allowance for Loan Losses The following table provides a roll forward by loan portfolio of the allowance for loan losses for the year ended December 31, 2015 , 2014 and 2013 (dollars in millions): Year Ended December 31, 2015 One- to Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 27 $ 367 $ 10 $ 404 Provision (benefit) for loan losses 15 (55 ) — (40 ) Charge-offs (2 ) (31 ) (11 ) (44 ) Recoveries (1) — 26 7 33 Charge-offs, net (2 ) (5 ) (4 ) (11 ) Allowance for loan losses, end of period $ 40 $ 307 $ 6 $ 353 Year Ended December 31, 2014 One- to Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 102 $ 326 $ 25 $ 453 Provision (benefit) for loan losses (42 ) 82 (4 ) 36 Charge-offs (44 ) (65 ) (17 ) (126 ) Recoveries (1) 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 Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 184 $ 257 $ 40 $ 481 Provision (benefit) 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 (1) Includes one-time payments from third party mortgage originators of $2 million and $11 million to satisfy in full all pending and future repurchase requests with them for the years ended December 31, 2015 and 2014 , respectively. Total loans receivable designated as held-for-investment decreased $1.4 billion during the year ended December 31, 2015 . The allowance for loan losses was $353 million , or 7% of total loans receivable, as of December 31, 2015 compared to $404 million , or 6% of total loans receivable, as of December 31, 2014 . 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, 2015 and 2014 (dollars in millions): Nonaccrual TDRs Accrual TDRs (1) Current (2) 30-89 Days Delinquent 90-179 Days Delinquent 180+ Days Delinquent Total Recorded Investment in TDRs (3)(4) December 31, 2015 One- to four-family $ 106 $ 106 $ 19 $ 8 $ 47 $ 286 Home equity 120 42 11 8 21 202 Total $ 226 $ 148 $ 30 $ 16 $ 68 $ 488 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 (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 $283 million and $314 million at December 31, 2015 and 2014 , respectively. For home equity loans, the recorded investment in TDRs represents the unpaid principal balance. (4) Total recorded investment in TDRs at December 31, 2015 consisted of $334 million of loans modified as TDRs and $154 million of loans that have been charged off due to bankruptcy notification. 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. 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 year ended December 31, 2015 , 2014 and 2013 (dollars in millions): Average Recorded Investment Interest Income Recognized December 31, December 31, 2015 2014 2013 2015 2014 2013 One- to four-family $ 303 $ 576 $ 1,205 $ 9 $ 16 $ 33 Home equity 213 227 262 17 18 20 Total $ 516 $ 803 $ 1,467 $ 26 $ 34 $ 53 The decrease in the average recorded investments of one- to four-family TDRs comparing the year ended December 31, 2015 and 2014 was primarily due to the sale of $0.8 billion of one- to four-family loans modified as TDRs during 2014. Included in the allowance for loan losses was a specific valuation allowance of $61 million and $66 million that was established for TDRs at December 31, 2015 and 2014 , 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, 2015 and 2014 (dollars in millions): December 31, 2015 December 31, 2014 Recorded Investment in TDRs Specific Valuation Allowance Net Investment in TDRs Recorded Investment in TDRs Specific Valuation Allowance Net Investment in TDRs With a recorded allowance: One- to four-family $ 72 $ 9 $ 63 $ 88 $ 9 $ 79 Home equity $ 111 $ 52 $ 59 $ 118 $ 57 $ 61 Without a recorded allowance: (1) One- to four-family $ 214 $ — $ 214 $ 228 $ — $ 228 Home equity $ 91 $ — $ 91 $ 99 $ — $ 99 Total: One- to four-family $ 286 $ 9 $ 277 $ 316 $ 9 $ 307 Home equity $ 202 $ 52 $ 150 $ 217 $ 57 $ 160 (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, 2015 , 2014 and 2013 (dollars in millions): Year Ended December 31, 2015 Interest Rate Reduction Number of Loans Principal Forgiven Principal Deferred Re-age/ Extension/ Interest Capitalization Other with Other Total One- to four-family 34 $ — $ 1 $ 9 $ — $ 3 $ 13 Home equity 367 — — 3 2 19 24 Total 401 $ — $ 1 $ 12 $ 2 $ 22 $ 37 Year Ended December 31, 2014 Interest Rate Reduction Number of Principal Principal Deferred Re-age/ Other with Other Total 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 Deferred Re-age/ Other with Other Total 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 The Company had less than $1 million in principal forgiven during the years ended December 31, 2015 and 2014 . During the year ended December 31, 2013, the Company had principal forgiven of $7 million on one-to four family loans, with a pre-modification weighted average interest rate of 5.2% and a post-modification weighted average interest rate of 2.3% . The Company considers modifications that become 30 days past due to have experienced a payment default. The following table shows the recorded investment in modifications that experienced a payment default within 12 months after the modification for the years ended December 31, 2015 , 2014 and 2013 (dollars in millions): Year Ended December 31, 2015 2014 2013 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Recorded One- to four-family (1) 7 $ 3 27 $ 9 142 $ 53 Home equity (2)(3) 90 5 55 3 69 3 Total 97 $ 8 82 $ 12 211 $ 56 (1) For years ended December 31, 2015 , 2014 and 2013 less than $1 million , $1 million and $18 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, 2015 , 2014 and 2013, $3 million , $1 million and $1 million , respectively, of the recorded investment in home equity loans that had a payment default in the trailing 12 months was classified as current. (3) The majority of these home equity modifications during the year ended December 31, 2015 experienced servicer transfers during this same period. |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
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. 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, 2015 and 2014 (dollars in millions): Fair Value Notional Asset (1) Liability (2) Net (3) December 31, 2015 Interest rate contracts: Cash flow hedges $ — $ — $ — $ — Fair value hedges 2,204 10 (55 ) (45 ) Total derivatives designated as hedging instruments (4) $ 2,204 $ 10 $ (55 ) $ (45 ) December 31, 2014 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 ) (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, 2015 and 2014 . Cash Flow Hedges 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. 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. 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 (losses) on securities and other line item in the consolidated statement of income . At December 31, 2014 , accumulated other comprehensive loss attributable to cash flow hedges, pre-tax, was $422 million . These cash flow hedges were used to hedge the forecasted transactions related to repurchase agreements and FHLB advances. Following E*TRADE Clearing's move out from under E*TRADE Bank on July 1, 2015, the Company evaluated the sufficiency of the capital and liquidity position and, in early September, management and the Board concluded that E*TRADE Bank would deploy excess capital to terminate the $4.4 billion of legacy wholesale funding obligations. As the Company's intent changed and the hedged forecasted transactions became probable of not occurring, the Company reclassified $370 million of pre-tax losses on cash flow hedges from accumulated other comprehensive loss into earnings during the during 2015. The following table summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in cash flow hedges on accumulated other comprehensive loss and on the consolidated statement of income for the years ended December 31, 2015 , 2014 and 2013 (dollars in millions): For the Year Ended December 31, 2015 2014 2013 Gains (losses) on derivatives recognized in OCI (effective portion), net of tax $ (10 ) $ (39 ) $ 67 Losses reclassified from AOCI into earnings (effective portion), net of tax (1) $ (271 ) $ (76 ) $ (87 ) Cash flow hedge ineffectiveness gains (2) $ — $ — $ 1 (1) Includes the reclassification of losses deferred in accumulated other comprehensive loss into earnings related to cash flow hedges as a result of the termination of repurchase agreements and FHLB advances during the year ended December 31, 2015. (2) 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 (losses) on securities and other line item in the consolidated statement of income . Fair Value Hedges Fair value hedges are used to offset exposure to changes in value of certain fixed-rate assets and liabilities. 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 (losses) on securities and other line item in the consolidated statement of income . To the extent that the hedge is ineffective, the changes in the fair values will not offset and the difference, or hedge ineffectiveness, is reflected in the gains (losses) on securities and other line item in the consolidated statement of income . Hedge accounting is discontinued for fair value hedges if a derivative instrument is sold, terminated or otherwise de-designated. If fair value hedge accounting is discontinued, the previously hedged item is no longer adjusted for changes in fair value through the consolidated statement of income and the cumulative net gain or loss on the hedged asset or liability at the time of de-designation is amortized to interest income or interest expense using the effective interest method over the expected remaining life of the hedged item. Changes in the fair value of the derivative instruments after de-designation of fair value hedge accounting are recorded in the gains (losses) on securities and other line item in the consolidated statement of income . The following table summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in fair value hedges and related hedged items on the consolidated statement of income for the years ended December 31, 2015 , 2014 and 2013 (dollars in millions): Year Ended December 31, 2015 2014 Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Agency debentures $ (3 ) $ 3 $ — $ (100 ) $ 91 $ (9 ) Agency mortgage-backed securities (4 ) 3 (1 ) (33 ) 32 (1 ) Total gains (losses) included in earnings $ (7 ) $ 6 $ (1 ) $ (133 ) $ 123 $ (10 ) Year Ended December 31, 2013 Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Agency debentures $ 73 $ (72 ) $ 1 Agency mortgage-backed securities 34 (35 ) (1 ) Total gains (losses) included in earnings $ 107 $ (107 ) $ — (1) Reflected in the gains (losses) on securities and other line item on the consolidated statement of income . 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 $130 million of its cash and mortgage-backed securities as collateral related to its derivative contracts in net liability positions to counterparties at December 31, 2015 . 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, 2015 , 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 $45 million at December 31, 2015 . 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 $130 million at December 31, 2015 , which exceeded derivative instruments in net liability positions at the counterparty level by $85 million . |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 (dollars in millions): December 31, 2015 December 31, 2014 Gross Amount Accumulated Depreciation and Amortization Net Amount Gross Amount Accumulated Depreciation and Amortization Net Amount Software $ 490 $ (388 ) $ 102 $ 487 $ (391 ) $ 96 Leasehold improvements 116 (91 ) 25 114 (84 ) 30 Equipment 127 (84 ) 43 102 (76 ) 26 Buildings 72 (28 ) 44 72 (26 ) 46 Furniture and fixtures 22 (20 ) 2 23 (21 ) 2 Land 3 — 3 3 — 3 Construction in progress 17 — 17 42 — 42 Total $ 847 $ (611 ) $ 236 $ 843 $ (598 ) $ 245 Depreciation and amortization expense related to property and equipment was $81 million , $78 million and $89 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Software includes capitalized internally developed software costs of $42 million , $27 million and $24 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Amortization of completed and in-service software was $41 million , $47 million and $57 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Software at December 31, 2015 and 2014 also included $22 million and $19 million , respectively, of internally developed software in the process of development for which amortization has not begun. Sale-Leaseback Transaction During 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 during 2014 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 Payments Minimum Sublease Proceeds Years ending December 31, 2016 $ 4 $ (3 ) 2017 4 (3 ) 2018 5 (3 ) 2019 5 (3 ) 2020 5 (3 ) Thereafter 19 (6 ) Total $ 42 $ (21 ) |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES, NET | GOODWILL AND OTHER INTANGIBLES, NET Goodwill 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, 2015 and 2014, all $ 1.8 billion of goodwill was allocated to the retail brokerage reporting unit within the trading and investing segment. There were no additions or impairments to the carrying value of the Company’s goodwill during the years ended December 31, 2015 and 2014. 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. 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 next performed a step two evaluation and determined that the entire carrying amount of goodwill allocated to the market making reporting unit was impaired and recognized a $142 million impairment of goodwill during 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. For the year ended December 31, 2015, the Company elected to perform a quantitative analysis for the retail brokerage reporting unit to determine whether the fair value was less than the carrying value. As a result of this assessment, the Company concluded that goodwill assigned to the retail brokerage reporting unit was not impaired at December 31, 2015. At December 31, 2015 , 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. Other Intangibles, Net 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 Original Useful Life (Years) Weighted Average Remaining Useful Life (Years) Gross Amount Accumulated Amortization Net Amount December 31, 2015 20 10 $ 435 $ (261 ) $ 174 December 31, 2014 20 11 $ 435 $ (241 ) $ 194 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, 2016 $ 20 2017 19 2018 19 2019 18 2020 18 Thereafter 80 Total future amortization expense $ 174 |
Receivables from and Payables t
Receivables from and Payables to Brokers, Dealers and Clearing Organizations Receviables from and Payables to Brokers, Dealers and Clearing Organizations | 12 Months Ended |
Dec. 31, 2015 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Due to and from Broker-Dealers and Clearing Organizations Disclosure [Text Block] | RECEIVABLES FROM AND PAYABLES TO BROKERS, DEALERS AND CLEARING ORGANIZATIONS Receivables from and payables to brokers, dealers and clearing organizations consist of the following (in millions): December 31, 2015 December 31, 2014 Receivables: Securities borrowed $ 120 $ 474 Receivables from clearing organizations 341 313 Other 59 97 Total $ 520 $ 884 Payables: Securities loaned $ 1,535 $ 1,649 Payables to clearing organizations 8 9 Other 33 41 Total $ 1,576 $ 1,699 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS Deposits are summarized as follows (dollars in millions): Amount Weighted-Average Rate December 31, December 31, 2015 2014 2015 2014 Sweep deposits (1) $ 24,018 $ 19,119 0.01 % 0.03 % Complete savings deposits 3,357 3,753 0.01 % 0.01 % Checking deposits 1,239 1,137 0.03 % 0.03 % Other money market and savings deposits 792 833 0.01 % 0.01 % Time deposits (2) 39 48 0.38 % 0.50 % Total deposits (3) $ 29,445 $ 24,890 0.01 % 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, 2015 and 2014 , the Company had $173 million and $141 million in non-interest bearing deposits, respectively. At December 31, 2015 , scheduled maturities of time deposits were as follows (dollars in millions): Years ending December 31, 2016 $ 28 2017 5 2018 3 2019 1 2020 2 Thereafter — Subtotal 39 Unamortized discount, net — Total time deposits $ 39 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, 2015 2014 2015 2014 Three months or less $ — $ 1 $ — $ — Three through six months 1 1 — — Six through twelve months 2 2 — — Over twelve months 1 2 1 1 Total certificates of deposit $ 4 $ 6 $ 1 $ 1 |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Other Borrowings Disclosure [Abstract] | |
Other Borrowings | OTHER BORROWINGS Securities sold under agreements to repurchase, FHLB advances and TRUPs at December 31, 2015 and 2014 , were as follows (dollars in millions): December 31, 2015 December 31, 2014 Trust preferred securities (1) $ 409 $ 428 Securities sold under agreements to repurchase and FHLB advances: Repurchase Agreements (2) $ 82 $ 3,672 FHLB Advances — 920 Fair value hedge adjustments and deferred costs — (49 ) Total securities sold under agreements to repurchase and FHLB advances 82 4,543 Total other borrowings $ 491 $ 4,971 (1) The Company's TRUPs do not begin maturing until 2031 . (2) The maximum amount at any month end for repurchase agreements was $3.8 billion and $4.9 billion for the years ended December 31, 2015 , respectively. 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. The Company terminated $4.4 billion of repurchase agreements and FHLB advances during 2015. In connection with this termination, the Company recorded a pre-tax charge of $413 million in consolidated statement of income , including $43 million in the losses on early extinguishment of debt line item, and $370 million in the gains (losses) on securities and other line item that were reclassified from accumulated comprehensive loss attributable to cash flow hedges. Prior to 2008, ETB Holdings, Inc. ("ETBH") raised capital through the formation of trusts, which sold TRUPs 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 Cumulative Preferred Securities, commonly referred to as TRUPs, at par with a liquidation amount of $1,000 per capital security. The trusts used the proceeds from the sale of issuances to purchase 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 TRUPs occurred in 2007. During 2015, the Company redeemed approximately $19 million of TRUPs held by ETBH Capital Trust I and Capital Trust II in advance of maturity and recorded a net gain on early extinguishment of debt of approximately $4 million . The face values of outstanding trusts at December 31, 2015 are shown below (dollars in millions): Trusts Face Value Maturity Date Annual Interest Rate ETBH Capital Trust II (1) $ — 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 96 2037 1.90%-2.00% above 3-month LIBOR Total $ 414 (1) The TRUPs were redeemed during December 2015 but the trust was not legally dissolved until early 2016. External Line of Credits maintained at E*TRADE Clearing E*TRADE Clearing maintains secured committed lines of credit with two unaffiliated banks, aggregating to $175 million at December 31, 2015 . E*TRADE Clearing also has secured uncommitted lines of credit with several unaffiliated banks aggregating to $375 million and unsecured uncommitted lines of credit with two unaffiliated banks aggregating to $100 million at December 31, 2015. The secured committed lines are scheduled to mature in June 2016 while $75 million of the unsecured uncommitted line at one of the banks is scheduled to mature in August 2016. The remaining lines have no maturity date. During 2015, E*TRADE Clearing entered into a new 364-day, $345 million committed senior unsecured revolving credit facility with a syndicate of banks, which brought its total external liquidity lines to $995 million . The credit facility contains maintenance covenants relating to E*TRADE Clearing's minimum consolidated tangible net worth and regulatory net capital ratio. There were no outstanding balances for these lines at December 31, 2015 . |
Corporate Debt
Corporate Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
CORPORATE DEBT | CORPORATE DEBT Corporate debt at December 31, 2015 and 2014 is outlined in the following table (dollars in millions): Face Value Discount Net December 31, 2015 Interest-bearing notes: 5 3 / 8 % Notes, due 2022 $ 540 $ (6 ) $ 534 4 5 / 8 % Notes, due 2023 460 (5 ) 455 Total interest-bearing notes 1,000 (11 ) 989 Non-interest-bearing debt: 0% Convertible debentures, due 2019 8 — 8 Total corporate debt $ 1,008 $ (11 ) $ 997 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 5 3 / 8 % Notes In November 2014, the Company issued an aggregate principal amount of $540 million in 5 3 / 8 % Senior Notes, due November 2022. Interest is payable semi-annually and the notes may be called by the Company in whole or in part at any time (1) before November 15, 2017, at a redemption price equal to 100% of their principal amount plus the applicable "make-whole" premium, and (2) on or after November 15, 2017 at specified redemption prices, which decline over time. The Company used the net proceeds from the issuance of the 5 3 / 8 % Notes, along with approximately $460 million of existing corporate cash, to redeem all of its outstanding 6 3 / 4 % Notes and 6% Notes, including paying the associated redemption premiums of $54 million , 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 . 4 5 / 8 % Notes In March 2015, the Company issued an aggregate principal amount of $460 million in 4 5 / 8 % Senior Notes due September 2023. Interest is payable semi-annually and the notes may be called by the Company in whole or in part at any time (1) before March 15, 2018 at a redemption price equal to 100% of their principal amount plus the applicable "make-whole" premium, and (2) on or after March 15, 2018, at specified redemption prices, which decline over time. The Company used the net proceeds from the issuance of the 4 5 / 8 % Notes, along with approximately $432 million of existing corporate cash to redeem all of the outstanding 6 3 / 8 % Notes including paying the associated redemption premiums of $68 million , accrued interest and related fees and expenses. This resulted in $73 million in losses on early extinguishment of debt for the year ended December 31, 2015 . 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% Senior 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. During the years ended December 31, 2015 and 2014 , $30 million and $5 million of the Company’s convertible debentures were converted into 2.9 million and 0.5 million shares of common stock, respectively. At December 31, 2015 , 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 167.5 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 and in February of 2015, entered into an amendment to increase commitments thereunder by $50 million . At December 31, 2015 , there was no outstanding balance under the revolving credit facility and available capacity for borrowings was $250 million . The credit facility 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 . In September 2015, the Company entered into an amendment to its senior secured revolving credit facility, which reduced or removed certain negative covenants and other restrictions on the Company pursuant to the terms of the amendment. 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 $250 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, 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, 2015 , the Company was in compliance with all such maintenance covenants. Future Maturities of Corporate Debt Scheduled principal payments of corporate debt at December 31, 2015 were as follows (dollars in millions): Years ending December 31, 2016 $ — 2017 — 2018 — 2019 8 2020 — Thereafter 1,000 Total future principal payments of corporate debt 1,008 Unamortized discount (11 ) Total corporate debt $ 997 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income tax expense (benefit) for the years ended December 31, 2015 , 2014 and 2013 were as follows (dollars in millions): Year Ended December 31, 2015 2014 2013 Current income tax expense (benefit): Federal $ (5 ) $ — $ — State (5 ) 4 3 Foreign 5 — — Total current (5 ) 4 3 Deferred income tax expense (benefit): Federal (145 ) 152 127 State (31 ) 3 (20 ) Foreign — — — Total deferred (176 ) 155 107 Non-current income tax expense (benefit) (1) 4 — (1 ) Income tax expense (benefit) $ (177 ) $ 159 $ 109 (1) Non-current income tax expense (benefit) primarily relates to amortization for investments in qualified affordable housing projects recognized under the proportional amortization method. The following table presents the components of income before income tax expense (benefit) for the years ended December 31, 2015 , 2014 and 2013 (dollars in millions): Year Ended December 31, 2015 2014 2013 Domestic $ 84 $ 438 $ 186 Foreign 7 14 9 Income before income tax expense (benefit) $ 91 $ 452 $ 195 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, 2015, 2014, and 2013 (dollars in millions): Year Ended December 31, 2015 2014 2013 Unrecognized tax benefits, beginning of period $ 330 $ 333 $ 492 Additions based on tax positions related to prior years 5 12 10 Additions based on tax positions related to current year 2 — — Reductions based on tax positions related to prior years (304 ) (14 ) (163 ) Settlements with taxing authorities (3 ) — (5 ) Statute of limitations lapses (1 ) (1 ) (1 ) Unrecognized tax benefits, end of period $ 29 $ 330 $ 333 The unrecognized tax benefits decreased $301 million to $29 million during the year ended December 31, 2015 . At December 31, 2015, the Company had $ 18 million , net of federal benefits on state issues, of unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate in future periods. In 2015, the Company settled the IRS examination of its 2007, 2009 and 2010 federal tax returns. As a result, the Company released $303 million of reserves related to the uncertain tax positions in 2015. During 2009, the Company incurred a loss on the exchange of $1.7 billion interest-bearing corporate debt for non-interest-bearing convertible debentures. The uncertain tax positions were primarily related to whether certain components of that loss were considered deductible or non-deductible for tax purposes. 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 2008-2015 United Kingdom 2013-2015 United States 2012-2015 Various states (1) 2007-2015 (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 $4 million within the next twelve months as a result of settlements of certain examinations or expiration of statutes of limitations. The Company recognizes interest and penalties, if any, related to income tax matters in income tax expense. The Company has total reserves for interest and penalties of $13 million and $21 million as of December 31, 2015 and 2014, respectively. The tax expense for the year ended December 31, 2015 includes a benefit related to reduction of interest and penalties of $8 million , primarily related to the settlement of the IRS examination mentioned above. The tax expense for the years ended December 31, 2014 and December 31, 2013 included an increase in the accrual for interest and penalties of $1 million , principally related to state taxes, and an increase in accrual for interest and penalties of $5 million , principally related to federal taxes, respectively. 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, 2015 and 2014 are summarized in the following table (dollars in millions): December 31, 2015 2014 Deferred tax assets: Net operating losses $ 782 $ 632 Reserves and allowances, net 482 601 Mark to market 158 110 Deferred compensation 44 43 Tax credits 44 37 Basis differences in investments 10 9 Other 28 1 Total deferred tax assets 1,548 1,433 Valuation allowance (82 ) (91 ) Total deferred tax assets, net of valuation allowance 1,466 1,342 Deferred tax liabilities: Depreciation and amortization (433 ) (387 ) Other — (4 ) Total deferred tax liabilities (433 ) (391 ) Net deferred tax assets, net $ 1,033 $ 951 The Company is required to establish a valuation allowance for deferred tax assets and record 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, 2015 , 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. As of December 31, 2015, the Company had $1.8 billion of gross federal net operating losses, which will begin to expire in approximately 12 years. The increase in the net operating losses deferred tax asset was primarily driven by the release of unrecognized tax benefits as a result of the settlement of the IRS examination of the Company's 2007, 2009, and 2010 federal tax returns. 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 12 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 sustained profitability of the balance sheet management segment driven by various credit loss mitigation activities and improving economic conditions that benefited both our loan portfolio as well as the securities portfolio. The Company's valuation allowance for deferred tax assets decreased $9 million to $82 million at December 31, 2015 . 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 which have a limited carryforward period: • At December 31, 2015 , the Company had certain gross foreign country net operating loss carryforwards of $67 million and other foreign country temporary differences of approximately $16 million for which a deferred tax asset of approximately $17 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 $17 million against such deferred tax assets at December 31, 2015 . • At December 31, 2015 , the Company had gross state net operating loss carryforwards that expire between 2016 and 2034 in several states of $3.6 billion , most of which are subject to change by corresponding changes in apportionment. At December 31, 2015 , the Company had total state deferred tax assets, net of federal benefit, of approximately $177 million that related to the Company's state net operating loss carryforwards and temporary differences with a valuation allowance of $65 million against such deferred tax assets. 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, 2015 . 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, 2015, 2014 and 2013: Year Ended December 31, 2015 2014 2013 Federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 0.2 2.0 2.8 Difference between statutory rate and foreign effective tax rate (2.4 ) (1.0 ) (1.4 ) Tax exempt income (0.5 ) (0.1 ) (0.3 ) Disallowed executive compensation 6.5 0.6 0.9 Change in valuation allowance 0.1 2.2 1.1 Tax credits (3.8 ) (0.6 ) (1.8 ) Estimated reserve for uncertain tax positions 4.7 (0.3 ) (2.6 ) Deferred tax adjustments (1) 3.5 (3.4 ) 4.5 Tax on undistributed earnings and profits in certain foreign subsidiaries 3.9 1.1 2.4 Settled IRS examination (241.5 ) — — Tax impact of exit of market making business — — 16.4 Other (0.4 ) (0.3 ) (1.1 ) Effective tax rate (194.7 )% 35.2 % 55.9 % (1) Includes the impact of New York city tax legislative changes of (5.8)% during the year ended December 31, 2015 and New York state tax legislative changes of (1.8)% during the year ended December 31, 2014. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | SHAREHOLDER'S EQUITY The activity in shareholders’ equity during the year ended December 31, 2015 is summarized in the following table (dollars in millions): Common Stock / Additional Paid-In Capital Accumulated Deficit / Other Comprehensive Loss Total Beginning balance, December 31, 2014 $ 7,353 $ (1,978 ) $ 5,375 Net income — 268 268 Net change from available-for-sale securities — (108 ) (108 ) Net change from cash flow hedging instruments — 261 261 Other (1) 6 (3 ) 3 Ending balance, December 31, 2015 $ 7,359 $ (1,560 ) $ 5,799 (1) Other includes employee share-based compensation, conversions of convertible debentures, repurchase of common stock, and changes in accumulated other comprehensive loss from foreign currency translation. 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, 2015 , 2014 and 2013 (dollars in millions): Available-for-sale Securities Cash Flow Hedging Instruments Foreign Currency Translation Total Beginning balance, December 31, 2014 $ 7 $ (261 ) $ 5 $ (249 ) Other comprehensive loss before reclassifications (84 ) (10 ) (3 ) (97 ) Amounts reclassified from accumulated other comprehensive loss (24 ) 271 — 247 Net change (108 ) 261 (3 ) 150 Ending balance, December 31, 2015 $ (101 ) $ — $ 2 $ (99 ) Available-for-sale Securities Cash Flow Hedging Instruments Foreign Currency Translation Total 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 Securities Cash Flow Hedging Instruments Foreign Currency Translation Total 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 ) The following table presents the income statement line items impacted by reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2015 , 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 Year Ended December 31, 2015 2014 2013 Available-for-sale securities: $ 39 $ 42 $ 60 Gains (losses) on securities and other (15 ) (16 ) (23 ) Tax expense $ 24 $ 26 $ 37 Reclassification into earnings, net Cash flow hedging instruments: $ (370 ) $ — $ — Gains (losses) on securities and other — — 8 Operating interest income (69 ) (125 ) (147 ) Operating interest expense (439 ) (125 ) (139 ) Reclassification into earnings, before tax 168 49 52 Tax benefit $ (271 ) $ (76 ) $ (87 ) Reclassification into earnings, net The Company terminated $4.4 billion of repurchase agreements and FHLB advances during 2015. In connection with this termination, the Company recorded a pre-tax charge of $413 million in the consolidated statement of income, including $43 million in the losses on early extinguishment of debt line item, and $370 million in the gains (losses) on securities and other line item that were reclassified from accumulated comprehensive loss attributable to cash flow hedges. Preferred Stock The Company has 1 million shares authorized in preferred stock. None were issued or outstanding at December 31, 2015 or 2014 . Conversions of Convertible Debentures During the years ended December 31, 2015 and 2014 , $30 million and $5 million of the Company’s convertible debentures were converted into 2.9 million and 0.5 million shares of common stock, respectively. For further details on the convertible debentures, see Note 13—Corporate Debt . Share Repurchases On November 19, 2015, the Company announced that its Board of Directors has authorized the repurchase of up to $800 million of shares of the Company's common stock through March 31, 2017. During the three month period ended December 31, 2015, the Company repurchased a total of $50 million or 1.7 million shares of common stock. As of December 31, 2015, $750 million remained available for additional repurchases. The Company accounts for share repurchases retired after repurchase by allocating the excess repurchase price over par to APIC. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings per share (in millions, except share data and per share amounts): Year Ended December 31, 2015 2014 2013 Basic: Net income $ 268 $ 293 $ 86 Basic weighted-average shares outstanding (in thousands) 290,762 288,705 286,991 Basic earnings per share $ 0.92 $ 1.02 $ 0.30 Diluted: Net income $ 268 $ 293 $ 86 Basic weighted-average shares outstanding (in thousands) 290,762 288,705 286,991 Effect of dilutive securities: Weighted-average convertible debentures (in thousands) 2,820 3,999 4,125 Weighted-average options and restricted stock issued to employees (in thousands) 1,429 1,399 1,473 Diluted weighted-average shares outstanding (in thousands) 295,011 294,103 292,589 Diluted earnings per share $ 0.91 $ 1.00 $ 0.29 For the years ended December 31, 2015, 2014 and 2013, the Company excluded 0.1 million , 0.5 million and 1.7 million shares, respectively, of stock options and restricted stock awards and units from the calculations of diluted earnings per share as the effect would have been anti-dilutive. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY REQUIREMENTS | REGULATORY REQUIREMENTS Broker-Dealer Capital Requirements 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, 2015 and 2014 , all of the Company’s broker-dealer subsidiaries met minimum net capital requirements. The tables below summarize the minimum capital requirements and excess capital for the Company’s broker-dealer subsidiaries at December 31, 2015 and 2014 (dollars in millions): Required Net Capital Net Capital Excess Net Capital December 31, 2015: E*TRADE Clearing (1) $ 161 $ 1,007 $ 846 E*TRADE Securities (1)(2) — 49 49 Other broker-dealers 1 15 14 Total (3) $ 162 $ 1,071 $ 909 December 31, 2014: E*TRADE Clearing (1) $ 170 $ 795 $ 625 E*TRADE Securities (1) — 459 459 Other broker-dealers 1 19 18 Total $ 171 $ 1,273 $ 1,102 (1) Elected to use the Alternative method to compute net capital. The net capital requirement was $250,000 for E*TRADE Securities for both periods presented. (2) E*TRADE Securities was moved out from under E*TRADE Bank in February 2015 and subsequently paid dividends of $565 million to the parent company during the year ended December 31, 2015 . (3) E*TRADE Clearing and E*TRADE Securities paid cash dividends to the parent company of $124 million and $24 million , respectively, subsequent to December 31, 2015. Bank Capital Requirements E*TRADE Financial and E*TRADE Bank are subject to various regulatory capital requirements administered by federal banking agencies. Beginning January 1, 2015, both E*TRADE Financial and E*TRADE Bank calculate regulatory capital under the Basel III framework using the Standardized Approach, subject to transition provisions. Prior to Basel III becoming effective, the risk-based capital guidelines that applied to E*TRADE Bank were based upon the 1988 capital accords of the BCBS, a committee of central banks and bank supervisors, as implemented by the U.S. Federal banking agencies, including the OCC, commonly known as Basel I. As a savings and loan holding company, E*TRADE Financial was not previously subject to specific statutory capital requirements. Under the Basel III framework, the vast majority of the Company's margin receivables qualified for 0% risk-weighting and a larger portion of the Company's deferred tax assets were included in regulatory capital, both having a favorable impact on the Company's current capital ratios. A portion of this benefit was offset by the phase-out of TRUPs from the parent company's capital. In addition, in the first quarter of 2015, the Company made the one-time permanent election to exclude accumulated other comprehensive income from the calculation of Common Equity Tier 1 capital. 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 Financial’s and E*TRADE Bank’s financial condition and results of operations. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, E*TRADE Financial and E*TRADE Bank must meet specific capital guidelines that involve quantitative measures of 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, in some cases, approval from, or otherwise notice to, 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 Financial’s and 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 Financial and E*TRADE Bank to meet minimum Common equity Tier 1 capital, Tier 1 risk-based capital, Total risk-based capital, and Tier 1 leverage ratios. Events beyond management's control, such as deterioration in credit markets, could adversely affect future earnings and E*TRADE Financial’s and E*TRADE Bank’s ability to meet future capital requirements and, in the case of E*TRADE Bank, its ability to pay dividends to the parent company. E*TRADE Financial and E*TRADE Bank were categorized as "well capitalized" under the regulatory framework for prompt corrective action for the periods presented in the table below (dollars in millions): December 31, 2015 (1) December 31, 2014 (1) Actual Well Capitalized Minimum Capital Excess Capital Actual Well Capitalized Minimum Capital Excess Capital Amount Ratio Amount Ratio Amount Amount Ratio Amount Ratio Amount E*TRADE Bank: (2) Tier 1 leverage $ 3,075 9.7 % $ 1,579 5.0 % $ 1,496 $ 4,548 10.6 % $ 2,143 5.0 % $ 2,405 Tier 1 risk-based capital $ 3,075 36.5 % $ 674 8.0 % $ 2,401 $ 4,548 25.7 % $ 1,063 6.0 % $ 3,485 Total risk-based capital $ 3,185 37.8 % $ 842 10.0 % $ 2,343 $ 4,772 26.9 % $ 1,772 10.0 % $ 3,000 Common equity Tier 1 capital (3) $ 3,075 36.5 % $ 548 6.5 % $ 2,527 N/A N/A N/A N/A N/A (1) Due to the change in regulatory requirements described above, the December 31, 2015 ratios were calculated under Basel III requirements and the December 31, 2014 ratios were calculated under Basel I requirements. (2) E*TRADE Securities was moved out from under E*TRADE Bank in February 2015. E*TRADE Clearing was moved out from under E*TRADE Bank in July 2015. (3) The Basel III rule established Common Equity Tier 1 capital as a new tier of capital. December 31, 2015 Actual Well Capitalized Minimum Capital Excess Capital Amount Ratio Amount Ratio Amount E*TRADE Financial: Tier 1 leverage $ 3,747 9.0 % $ 2,093 5.0 % $ 1,654 Tier 1 risk-based capital $ 3,747 39.3 % $ 763 8.0 % $ 2,984 Total risk-based capital $ 4,186 43.9 % $ 954 10.0 % $ 3,232 Common equity Tier 1 capital $ 3,747 39.3 % $ 620 6.5 % $ 3,127 |
Lease Arrangements
Lease Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
LEASE ARRANGEMENTS | LEASE ARRANGEMENTS The Company has non-cancelable operating leases for facilities through 2026 . 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, 2016 $ 26 2017 26 2018 23 2019 21 2020 15 Thereafter 22 Total future minimum lease payments $ 133 Sublease proceeds (3 ) Net lease commitments $ 130 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 $22 million , $21 million and $22 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Rent expense, which is recorded in the occupancy and equipment line item in the consolidated statement of income , excludes costs related to leases involved in facility restructurings, which are recorded in the restructuring and other exit activities line item in the consolidated statement of income . On October 31, 2014, the Company executed a sale-leaseback transaction on its office located in Alpharetta, Georgia. See Note 8—Property and Equipment, Net for more information. |
Commitments, Contingencies and
Commitments, Contingencies and Other Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OTHER REGULATORY MATTERS | COMMITMENTS, CONTINGENCIES AND OTHER REGULATORY MATTERS Legal Matters The Company reviews its lawsuits, regulatory inquiries and other legal proceedings on an ongoing basis and provides disclosure and records loss contingencies in accordance with the loss contingencies accounting guidance. The Company establishes an accrual for losses at management's best estimate when it assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Once established, the estimated liability is revised based on currently available information when an event occurs requiring an adjustment. 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. In a Judgment and Statement of Decision filed September 16, 2015, the Court denied all claims for royalties by Ajaxo. Ajaxo’s post-trial motions were denied. Ajaxo has appealed to the Court of Appeal, Sixth District. There is no briefing schedule on this appeal. 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, 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 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's motion for summary judgment on the grounds of non-infringement was granted by the U.S. District Court in a Decision and Order dated March 9, 2015. All remaining claims are stayed pending resolution of issues on Droplet's remaining patents under review by the Patent Trial and Appeal Board ("PTAB"). On July 6, 2015, the PTAB instituted an inter parties review of plaintiff's 115 patent, which is scheduled to be litigated through March 2016. The Company will continue to defend itself vigorously in this matter, both in the District Court and at the U.S. Patent 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, 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 International Group, LLP, 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 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 continue to 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 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. By order dated March 18, 2015, the Superior Court entered a final order sustaining the Company's demurrer on all remaining claims with prejudice. Final judgment was entered in the Company's favor on April 8, 2015. Plaintiff filed a Notice of Appeal April 27, 2015. Briefing is scheduled to continue through 2016. The Company will continue to defend itself vigorously in this matter. On March 26, 2015, a putative class action was filed in the U.S. District Court for the Northern District of California by Ty Rayner, on behalf of himself and all others similarly situated, naming E*TRADE Financial Corporation and E*TRADE Securities as defendants. The complaint alleges that E*TRADE breached a fiduciary duty and unjustly enriched itself in connection with the routing of its customers’ orders to various market-makers and exchanges. Plaintiff seeks unspecified damages, declaratory relief, restitution, disgorgement of payments received by the Company, and attorneys’ fees. By stipulation, the parties have agreed to extend indefinitely the due date for a response to the claim. The Company will continue to defend itself vigorously in this matter. In addition to the matters described above, the Company is subject to various legal proceedings and claims that arise in the normal course of business. In each pending matter, the Company contests liability or the amount of claimed damages. In view of the inherent difficulty of predicting the outcome of such matters, particularly in cases where claimants seek substantial or indeterminate damages, or where investigation or discovery have yet to be completed, the Company is unable to estimate a range of reasonably possible losses on its remaining outstanding legal proceedings; however, the Company believes any losses, both individually or in the aggregate, 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 examinations and inspections. Compliance and trading problems that are reported to regulators, such as the SEC, Federal Reserve Bank of Richmond, 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 and G1 Execution Services, LLC. The Company 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. Subsequently, on July 11, 2013, FINRA notified E*TRADE Securities and G1 Execution Services, LLC that it was conducting an examination of both firms’ order handling practices. On March 19, 2015, the Company received a Wells notice from FINRA's Market Regulation Department relating to the adequacy of E*TRADE Securities' order-routing disclosures and supervisory process for reviewing execution quality during the period covered by the Company's 2012 internal review (July 2011 - June 2012). The Company continues to cooperate 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 actions taken against G1 Execution Services, LLC arising from the investigation. In the case of the review of both E*TRADE Securities and G1 Execution Services, LLC such actions could include monetary penalties and cease-and-desist orders, and could prompt claims by customers. Any of these actions could materially and adversely affect the Company’s broker-dealer businesses. 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. 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 method, cost method and other investments are generally limited liability investments in partnerships, companies and other similar entities, including tax credit partnerships and community development entities, which are not required to be consolidated. The Company had $54 million in unfunded commitments with respect to these investments at December 31, 2015 . At December 31, 2015 , the Company had approximately $28 million of certificates of deposit scheduled to mature in less than one year and approximately $70 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 TRUPs 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 TRUPs 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 TRUPs, 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, 2015 , management estimated that the maximum potential liability under this arrangement, including the current carrying value of the trusts, was equal to approximately $417 million or the total face value of these securities plus accrued interest payable, which may be unpaid at the termination of the trust arrangement. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
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; debt extinguishment; 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, 2015 Trading and Balance Sheet Corporate/ Total Net operating interest income $ 702 $ 383 $ 1 $ 1,086 Total non-interest income (loss) 667 (325 ) — 342 Total net revenue 1,369 58 1 1,428 Provision (benefit) for loan losses — (40 ) — (40 ) Total operating expense 827 105 275 1,207 Income (loss) before other income (expense) and income taxes 542 (7 ) (274 ) 261 Total other income (expense) — — (170 ) (170 ) Income (loss) before income taxes $ 542 $ (7 ) $ (444 ) $ 91 Income tax benefit (177 ) Net income $ 268 Year Ended December 31, 2014 Trading and Balance Sheet Corporate/ Total Net operating interest income $ 618 $ 455 $ 1 $ 1,074 Total non-interest income 697 43 — 740 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 Net operating interest income $ 527 $ 442 $ — $ 969 Total non-interest income 690 64 — 754 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 Total non-interest income (loss) for balance sheet management for the year ended December 31, 2015 includes the reclassification of $370 million of losses on cash flow hedges from accumulated comprehensive loss into earnings as a result of the termination of legacy wholesale funding obligations during 2015. Total other income (expense) included losses on early extinguishment of debt of $112 million and $71 million during the year ended December 31, 2015 and 2014, respectively. For additional information refer to Note 12—Other Borrowings and Note 13—Corporate Debt . Segment Assets Trading and Investing Balance Sheet Management Corporate/ Other (1) Total As of December 31, 2015 $ 11,554 $ 33,278 $ 595 $ 45,427 As of December 31, 2014 $ 12,032 $ 33,075 $ 423 $ 45,530 As of December 31, 2013 $ 10,820 $ 34,784 $ 676 $ 46,280 (1) Corporate/Other category includes corporate assets and other elimination adjustments, such as a line of credit between the operating segments, not allocated to the Company's operating segments. 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, 2015 , 2014 and 2013 . |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Dividends from subsidiaries $ 859 $ 311 $ 193 Other revenues 371 333 281 Total net revenue 1,230 644 474 Total operating expense 487 421 359 Income before other income (expense), income tax benefit, and equity in income (loss) of consolidated subsidiaries 743 223 115 Total other income (expense) (127 ) (166 ) (108 ) Income before income tax benefit and equity in income (loss) of consolidated subsidiaries 616 57 7 Income tax benefit (287 ) (88 ) (76 ) Equity in undistributed income (loss) of subsidiaries (635 ) 148 3 Net income 268 293 86 Other comprehensive income (loss) 150 204 (143 ) Comprehensive income (loss) $ 418 $ 497 $ (57 ) CONDENSED BALANCE SHEET (In millions) December 31, 2015 2014 ASSETS Cash and equivalents $ 432 $ 220 Property and equipment, net 156 165 Investment in consolidated subsidiaries 5,434 5,763 Receivable from subsidiaries 57 31 Deferred tax assets, net 739 335 Other assets 173 410 Total assets $ 6,991 $ 6,924 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Corporate debt $ 997 $ 1,366 Other liabilities 195 183 Total liabilities 1,192 1,549 Total shareholders’ equity 5,799 5,375 Total liabilities and shareholders’ equity $ 6,991 $ 6,924 CONDENSED STATEMENT OF CASH FLOWS (In millions) Year Ended December 31, 2015 2014 2013 Cash flows from operating activities: Net income $ 268 $ 293 $ 86 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 44 38 40 Equity in undistributed (income) loss from subsidiaries 635 (148 ) (3 ) Losses on early extinguishment of debt 5 6 — Other (163 ) (28 ) (60 ) Net cash provided by operating activities 789 161 63 Cash flows from investing activities: Capital expenditures for property and equipment (33 ) (62 ) (24 ) Proceeds from sale of subsidiary — 76 — Cash contributions to subsidiaries (147 ) (29 ) (39 ) Other — — 4 Net cash used in investing activities (180 ) (15 ) (59 ) Cash flows from financing activities: Net proceeds from issuance of senior notes 460 540 — Payments on senior notes (800 ) (940 ) — Repurchases of common stock (50 ) — — Other (7 ) 68 2 Net cash provided by (used in) financing activities (397 ) (332 ) 2 Increase (decrease) in cash and equivalents 212 (186 ) 6 Cash and equivalents, beginning of period 220 406 400 Cash and equivalents, end of period $ 432 $ 220 $ 406 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, 2015 , 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, 2015 | |
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): 2015 2014 First Second Third Fourth First Second Third Fourth Total net revenue $ 456 $ 445 $ 73 $ 454 $ 475 $ 438 $ 440 $ 461 Net income (loss) $ 40 $ 292 $ (153 ) $ 89 $ 97 $ 69 $ 86 $ 41 Earnings (loss) per share: Basic $ 0.14 $ 1.01 $ (0.53 ) $ 0.31 $ 0.34 $ 0.24 $ 0.30 $ 0.14 Diluted $ 0.14 $ 0.99 $ (0.53 ) $ 0.30 $ 0.33 $ 0.24 $ 0.29 $ 0.14 In the first quarter of 2015, the decrease in net income was primarily due to a $73 million pre-tax loss on early extinguishment of debt. In the third quarter of 2015, the decrease in total net revenue and net income was primarily driven by the reclassification from accumulated comprehensive loss of $370 million of losses related to cash flow hedges as a result of the termination of $4.4 billion in legacy wholesale funding obligations. Net income for the third quarter of 2015 was also reduced by a $39 million pre-tax loss on early extinguishment of debt, primarily related to the termination of the wholesale funding obligations. See Note 12—Other Borrowings , and Note 13—Corporate Debt for additional information. In the fourth quarter of 2014, the decrease in net income was primarily due to a $59 million pre-tax loss on early extinguishment of debt related to the redemption of the 6 3 / 4 % Notes and 6% Notes. |
Organization, Basis of Presen31
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization (policy) | 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, wholly-owned subsidiaries are described below: • E*TRADE Securities is a registered broker-dealer and is the primary provider of brokerage products and services to the Company’s customers; • E*TRADE Clearing 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; • 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 the provider of software and services for managing equity compensation plans to the Company's corporate customers. As of December 31, 2015 , the Company's two U.S. broker-dealers, E*TRADE Clearing and E*TRADE Securities, were no longer operating subsidiaries of E*TRADE Bank. E*TRADE Securities was moved out from under E*TRADE Bank in February 2015 and E*TRADE Clearing was moved out from under E*TRADE Bank in July 2015. This revised organizational structure provides increased capital flexibility as it enables the Company to dividend excess regulatory capital at the broker-dealers to the parent company with proper regulatory notifications. |
Basis of Presentation (policy) | 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 equity 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 U.S. GAAP. Intercompany accounts and transactions are eliminated in consolidation. 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 updated the presentation of its consolidated balance sheet and income statement line items, as follows, primarily as a result of the change in composition of its balance sheet after the termination of its wholesale funding obligations. Prior periods have been reclassified to conform to the current period presentation: • Reclassified the revenue earned on customer assets held by third parties from operating interest income to fees and service charges; • Reclassified certain receivables from other assets to receivables from brokers, dealers, and clearing organizations; • Reclassified the Company’s investment in FHLB stock to other assets; • Reclassified net deferred tax assets from other assets to deferred tax assets, net; • Reclassified certain payables from other liabilities to payables to brokers, dealers, and clearing organizations; • Renamed FHLB advances and other borrowings to other borrowings; and • Reclassified securities sold under agreements to repurchase to other borrowings. 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 is the primary source of corporate interest expense. Similarly, the Company reports corporate gains (losses) on sales of investments separately from gains (losses) on securities and other . 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 (losses) on securities and other are the result of activities in the Company’s operations, namely its balance sheet management segment. Corporate gains (losses) on sales of investments are reported in other income (expense) on the consolidated statement of income. |
Use of Estimates (policy) | 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; asset impairment, including goodwill impairment and OTTI; estimates of effective tax rates, deferred taxes and valuation allowance; 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 $1.6 billion and $0.9 billion at December 31, 2015 and 2014, 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 is also recognized in operating interest income using the effective interest method over the contractual life of the security and is adjusted to reflect actual prepayments. Realized gains and losses on available-for-sale debt and equity securities, other than OTTI, are included in the gains (losses) on securities and other 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 is also recognized in operating interest income using the effective interest method over the contractual life of the security and is adjusted to reflect actual prepayments. 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. |
Receivables from and payables to brokers, dealers and clearing organizations (policy) | Receivables from and Payables to Brokers, Dealers and Clearing Organizations —Receivables from brokers, dealers and clearing organizations include deposits paid for securities borrowed, clearing deposits and net receivables arising from unsettled trades. Payables to brokers, dealers and clearing organizations include deposits received for securities loaned and net payables arising from unsettled trades. Deposits paid for securities borrowed and deposits received for securities loaned are recorded at the amount of cash collateral advanced or received. Deposits paid for securities borrowed transactions require the Company to deposit cash with the lender. With respect to deposits received for securities loaned, the Company receives collateral in the form of cash in an amount generally in excess of the market value of the securities loaned. Interest income and interest expense are recorded on an accrual basis. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded, as necessary. |
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 $10.1 billion and $10.8 billion at December 31, 2015 and December 31, 2014 , respectively. Of this amount, $2.5 billion and $2.9 billion had been pledged or sold in connection with securities loans and deposits with clearing organizations at December 31, 2015 and December 31, 2014 , 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. In determining the adequacy of the allowance, the Company performs ongoing evaluations of the loan portfolio and loss forecasting assumptions. As of December 31, 2015 , the allowance for loan losses was $353 million on $4.9 billion of total loans receivable designated as held-for-investment. For loans that are not TDRs, the Company established a general allowance and evaluated the adequacy of the allowance for loan losses by loan portfolio segment: one- to four-family, home equity and consumer and other. For modified loans accounted for as TDRs that are valued using the discounted cash flow model, the Company established a specific allowance by forecasting losses, including economic concessions to borrowers, over the estimated remaining life of these loans. The estimate of the allowance for loan losses continues to be 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. During the year ended December 31, 2015 , the Company implemented a new loss forecasting model that better aligned to our run-off one- to four-family and home equity loan portfolios with loans approaching amortization resets. While there were no material changes in assumptions and methodologies in the new model and the implementation did not have a material impact on the allowance for loan losses, the implementation process triggered a re-evaluation of the time period of forecasted loan losses included in the general allowance. Based on reviews of recent loan performance, current economic conditions and their impact on borrower behavior and the timing of default in the new model, the Company extended the loss emergence period from 12 months to 18 months for both portfolios. The extended emergence period resulted in approximately $40 million of additional allowance for loan losses as of December 31, 2015. The new loss forecasting model continues to be sensitive to key risk factors within the one- to four-family and home equity loan portfolios, which include but are not limited to loan type, delinquency history, LTV/CLTV ratio and borrowers’ credit scores and the forecasted loan losses are estimated based on these types of loan-level attributes. The Company utilizes historical mortgage loan performance data to develop the forecast of delinquency and default for these risk segments. During the year ended December 31, 2015 , the Company also made the following enhancements to its quantitative allowance methodology for identifying higher risk loans in one- to four-family and home equity loan portfolios due to newly available performance information. These enhancements resulted in approximately $45 million of additional allowance for loan losses as of December 31, 2015 : • The Company extended the period of our forecasted loan losses captured within the general allowance to include the total probable loss over the remaining life on a subset of higher risk interest-only loans in the one- to four-family loan portfolio. • The Company further refined the criteria utilized in identifying higher risk home equity lines of credit for which the total probable loss over the remaining life is included within the general allowance. 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 Company utilizes a qualitative factor framework whereby, on a quarterly basis, management assesses the risk associated with three primary sets of factors: external factors, internal factors, and portfolio specific factors. 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 quantitative component of the general allowance. The total qualitative component was $13 million and $37 million as of December 31, 2015 and 2014 , respectively. |
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. An impairment loss is recognized if the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. 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. The Company currently does not have any intangible assets with indefinite lives other than goodwill. The Company evaluates 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 9—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 Method, Cost Method and Other Investments —The Company’s equity method, cost method and other 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. These 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 other income (expense) line item in the consolidated statement of income. The Company’s other investments include those accounted for using the proportional amortization method. 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 other income (expense) line item equal to the difference between the expected realizable value and the carrying value of the investment. 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. As a condition of its membership in the FHLB, the Company is required to maintain a FHLB stock investment which was $15 million at December 31, 2015. The Company accounts for its investment in FHLB stock as a cost method investment. FHLB advances, included in the other borrowings line item, is a wholesale funding source of E*TRADE Bank. |
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, a 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 14—Income Taxes . |
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. |
Other borrowings (policy) | Other Borrowings —Other borrowings includes securities sold under agreements to repurchase, FHLB advances, borrowings from E*TRADE Clearing's lines of credit and TRUPs. 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. |
Comprehensive income (loss) (policy) | Comprehensive Income (Loss) —The Company’s comprehensive income (loss) is composed of net income, 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 (losses) on securities and other line item in the consolidated statement of income. 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 (losses) on securities and other line item in the consolidated statement of income. For additional information on derivative instruments and hedging activities, see Note 7—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 3—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 from 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 from 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 type 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. Fees and service charges also includes revenue earned on customer assets held by third parties. |
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. The sale of the market making business resulted in a gain of $4 million which was recorded in the restructuring and other exit activities line item on the consolidated statement of income. |
Gains (losses) on securities and other (policy) | Gains (Losses) on Securities and Other —Gains (losses) on securities and other includes the reclassification of deferred losses on cash flow hedges; 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 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 2015, the Company adopted and the shareholders approved the 2015 Omnibus Incentive Plan ("2015 Plan"), which replaced the 2005 Stock Incentive Plan ("2005 Plan"). The 2015 Plan provides the Company the ability to grant equity awards to officers, directors, employees and consultants, including, but not limited to, nonqualified or incentive stock options, restricted stock awards and restricted stock units at a price determined by the Board on 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 directors and to certain of the Company's officers and employees. Options generally vest ratably over a two - to four -year period from the date of grant and expire within seven to ten years from the date of grant. Certain options provide for accelerated vesting upon a change of control. Exercise prices are equal to the fair value of the shares on the grant date. As of December 31, 2015, there were 0.3 million options outstanding and no unrecognized compensation expense related to non-vested stock options. The Company issues restricted stock awards and deferred restricted stock units to 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 shares of restricted stock and restricted stock units are issued at the fair value on the date of grant and vest ratably over the requisite service period, generally one to four years. Beginning in 2015, the Company also issued performance share units to certain of the Company’s officers. Each performance share unit can be converted into one share of the Company’s common stock upon vesting. Vesting of performance share units is contingent upon achievement of certain predefined individual and Company performance targets over the performance period. These performance share units are issued at the fair value on the date of grant and vest on a graded basis over the requisite service period, which is one to two years. As of December 31, 2015, there were 3.1 million restricted stock awards and units outstanding and $25 million of total unrecognized compensation expense related to non-vested restricted stock awards. This cost is expected to be recognized over a weighted-average period of 1.1 years . As of December 31, 2015, there were also 0.1 million performance share units outstanding. The total fair value of restricted stock awards, restricted stock units and performance share units vested was $28 million , $34 million and $19 million for the years ended December 31, 2015, 2014 and 2013, respectively. The Company recognized $34 million , $24 million and $20 million in compensation expense for its options, restricted stock awards, restricted stock units and performance share units for the years ended December 31, 2015 , 2014 and 2013 , respectively. Under the 2015 Plan, the remaining unissued authorized shares of the 2005 Plan that are not subject to outstanding awards thereunder were authorized for issuance. Additionally, any shares that had been awarded but remained unissued under the 2005 Plan that were subsequently canceled, forfeited, or reacquired by the Company would be authorized for issuance under the 2015 Plan. As of December 31, 2015, 12.2 million shares were available for grant under the 2015 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. Compensation expense for performance share units is also adjusted based on the Company’s estimated outcome of meeting the performance conditions. 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 Per Share —Basic earnings per share is computed by dividing net income by the weighted-average common shares outstanding for the period. Diluted earnings 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 per share stock options, unvested restricted stock awards and units, unvested performance share 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. Adoption of New Accounting Standards 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 as a component of income tax expense. The Company adopted the amended accounting guidance for its qualifying investments on a full retrospective basis for annual and interim periods beginning on January 1, 2015. The adoption of the amended guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows for the periods presented. For the year ended December 31, 2015, $5 million of amortization and $4 million of tax credits associated with these investments were recognized as income tax expense in the consolidated statement of income. As of December 31, 2015 , the carrying value of these investments was $35 million and is included within other assets in the consolidated balance sheet. 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 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 was applied using a cumulative-effect approach as of that date. The adoption of this amended guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. The amended disclosure guidance for transfers of financial assets accounted for as secured borrowings became effective for annual periods beginning on January 1, 2015 and interim periods beginning on April 1, 2015 for the Company. The Company's disclosures in Note 4—Offsetting Assets and Liabilities reflect the adoption of this amended disclosure guidance. 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 was applied on a modified retrospective basis to qualifying loans at that date. The adoption of the amended guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. Presentation of Debt Issuance Costs In April 2015, the FASB amended the presentation guidance on debt issuance costs. The amended presentation guidance requires that debt issuance costs be presented in an entity’s balance sheet as a direct deduction from the related debt liability rather than as an asset. In August 2015, the FASB issued additional guidance clarifying that debt issuance costs related to line-of-credit arrangements may be presented as an asset in an entity’s balance sheet, regardless of whether there are any outstanding borrowings on the arrangement. As this guidance is consistent with the Company's historical presentation of debt issuance costs, the Company's adoption of the amended guidance as of January 1, 2015 did not impact the Company’s financial condition, results of operations or cash flows. New Accounting Standards Not Yet Adopted 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, 2018 for the Company and may be applied on either a full retrospective or modified retrospective basis. Early adoption is 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. 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 became effective for the Company for annual periods beginning on January 1, 2016 and will be effective 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 clarifies how to determine whether a group of equity holders has power over an entity. The amended guidance became 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. The adoption of the amended guidance will not have a material impact on the Company’s financial condition, results of operations or cash flows. Accounting for Customer Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB amended the accounting guidance on customer fees paid in a cloud computing arrangement. The amended guidance requires that internal-use software accessed by a customer in a cloud computing arrangement be accounted for as a software license if specific criteria are met; otherwise they should be accounted for as service contracts. The amended guidance became effective for annual and interim periods beginning on January 1, 2016 for the Company and may be applied on either a full retrospective or prospective 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. Classification and Measurement of Financial Instruments In January 2016, the FASB amended the accounting and disclosure guidance on the classification and measurement of financial instruments. Relevant changes in the amended guidance include the requirement that equity investments, excluding those accounted for under the equity method of accounting or those resulting in consolidation of the investee, be measured at fair value in the consolidated balance sheet with changes in fair value recognized in net income. For disclosure purposes, the Company will no longer be required to disclose the methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost in the consolidated balance sheet. The amended guidance will be effective for interim and annual periods beginning on January 1, 2018 for the Company and is required to be applied on a modified retrospective basis by means of a cumulative-effect adjustment to the consolidated balance sheet on that date. 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. |
Operating Interest Income and32
Operating Interest Income and Operating Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Operating interest income: Loans $ 230 $ 297 $ 395 Available-for-sale securities 244 288 279 Held-to-maturity securities 346 328 255 Margin receivables 276 264 224 Securities borrowed and other 119 102 54 Total operating interest income (1) 1,215 1,279 1,207 Operating interest expense: Securities sold under agreements to repurchase (2) (69 ) (123 ) (148 ) FHLB advances and other borrowings (2) (48 ) (65 ) (68 ) Deposits (4 ) (8 ) (13 ) Customer payables and other (8 ) (9 ) (9 ) Total operating interest expense (3) (129 ) (205 ) (238 ) Net operating interest income $ 1,086 $ 1,074 $ 969 (1) Operating interest income reflects $(42) million , $(31) million , and $(16) million of expense on hedges that qualify for hedge accounting for the years ended December 31, 2015, 2014, and 2013, respectively. (2) The Company terminated $4.4 billion of repurchase agreements and FHLB advances in 2015. See Note 12—Other Borrowings for additional information. (3) Operating interest expense reflects $(74) million , $(132) million , and $(153) million of expense on hedges that qualify for hedge accounting for the years ended December 31, 2015, 2014, and 2013, respectively. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Inputs, Assets, Quantitative Information | The weighted average coupon rates for the available-for-sale mortgage-backed securities at December 31, 2015 are shown in the following table: Weighted Average Coupon Rate Agency mortgage-backed securities 2.85 % Agency CMOs 2.73 % 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, 2015 and 2014: Unobservable Inputs Average Range December 31, 2015 Loans receivable: One- to four-family Appraised value $ 422,900 $8,500-$1,900,000 Home equity Appraised value $ 274,100 $9,000-$1,300,000 Real estate owned Appraised value $ 330,700 $26,500-$1,250,000 December 31, 2014 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 |
Fair Value Measurements, Recurring and Nonrecurring | Assets and liabilities measured at fair value at December 31, 2015 and 2014 are summarized in the following tables (dollars in millions): Level 1 Level 2 Level 3 Total Fair Value December 31, 2015: Recurring fair value measurements: Assets Available-for-sale securities: Debt securities: Agency mortgage-backed securities and CMOs $ — $ 11,763 $ — $ 11,763 Agency debentures — 557 — 557 U.S. Treasuries — 143 — 143 Agency debt securities — 55 — 55 Municipal bonds — 35 — 35 Corporate bonds — 4 — 4 Total debt securities — 12,557 — 12,557 Publicly traded equity securities 32 — — 32 Total available-for-sale securities 32 12,557 — 12,589 Other assets: Derivative assets (1) — 10 — 10 Total assets measured at fair value on a recurring basis (2) $ 32 $ 12,567 $ — $ 12,599 Liabilities Derivative liabilities (1) $ — $ 55 $ — $ 55 Total liabilities measured at fair value on a recurring basis (2) $ — $ 55 $ — $ 55 Nonrecurring fair value measurements: Loans receivable: One- to four-family $ — $ — $ 41 $ 41 Home equity — — 22 22 Total loans receivable — — 63 63 Real estate owned — — 26 26 Total assets measured at fair value on a nonrecurring basis (3) $ — $ — $ 89 $ 89 (1) All derivative assets and liabilities were interest rate contracts at December 31, 2015 . Information related to derivative instruments is detailed in Note 7—Accounting for Derivative Instruments and Hedging Activities . (2) Assets and liabilities measured at fair value on a recurring basis represented 28% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2015 . (3) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2015 , and for which a fair value measurement was recorded during the period. Level 1 Level 2 Level 3 Total Fair Value December 31, 2014: Recurring fair value measurements: Assets Available-for-sale securities: Debt securities: Agency 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 7—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. |
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, 2015 , 2014 and 2013 (dollars in millions): December 31, 2015 2014 2013 One- to four-family $ 7 $ 10 $ 40 Home equity 14 30 58 Total losses on loans receivable measured at fair value $ 21 $ 40 $ 98 Losses (gains) on real estate owned measured at fair value $ — $ (2 ) $ (1 ) Losses on goodwill measured at fair value $ — $ — $ 142 |
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, 2015 and December 31, 2014 (dollars in millions): December 31, 2015 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash and equivalents $ 2,233 $ 2,233 $ — $ — $ 2,233 Cash required to be segregated under federal or other regulations $ 1,057 $ 1,057 $ — $ — $ 1,057 Held-to-maturity securities: Agency mortgage-backed securities and CMOs $ 10,353 $ — $ 10,444 $ — $ 10,444 Agency debentures 127 — 125 — 125 Agency debt securities 2,523 — 2,544 — 2,544 Other non-agency debt securities 10 — — 10 10 Total held-to-maturity securities $ 13,013 $ — $ 13,113 $ 10 $ 13,123 Receivables from brokers, dealers and clearing organizations $ 520 $ — $ 520 $ — $ 520 Margin receivables $ 7,398 $ — $ 7,398 $ — $ 7,398 Loans receivable, net: One- to four-family $ 2,465 $ — $ — $ 2,409 $ 2,409 Home equity 1,810 — — 1,660 1,660 Consumer and other 338 — — 343 343 Total loans receivable, net (1) $ 4,613 $ — $ — $ 4,412 $ 4,412 Liabilities Deposits $ 29,445 $ — $ 29,444 $ — $ 29,444 Payables to brokers, dealers and clearing organizations $ 1,576 $ — $ 1,576 $ — $ 1,576 Customer payables $ 6,544 $ — $ 6,544 $ — $ 6,544 Other borrowings: Securities sold under agreements to repurchase $ 82 $ — $ 82 $ — $ 82 Trust preferred securities $ 409 $ — $ — $ 252 $ 252 Total other borrowings $ 491 $ — $ 82 $ 252 $ 334 Corporate debt $ 997 $ — $ 1,055 $ — $ 1,055 (1) The carrying value of loans receivable, net includes the allowance for loan losses of $353 million and loans that are valued at fair value on a nonrecurring basis at December 31, 2015 . December 31, 2014 Carrying Value Level 1 Level 2 Level 3 Total 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 Receivables from brokers, dealers and clearing organizations $ 884 $ — $ 884 $ — $ 884 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 Liabilities Deposits $ 24,890 $ — $ 24,890 $ — $ 24,890 Payables to brokers, dealers and clearing organizations $ 1,699 $ — $ 1,699 $ — $ 1,699 Customer payables $ 6,455 $ — $ 6,455 $ — $ 6,455 Other borrowings: Securities sold under agreements to repurchase $ 3,672 $ — $ 3,681 $ — $ 3,681 FHLB advances and trust preferred securities $ 1,299 $ — $ 922 $ 252 $ 1,174 Total other borrowings $ 4,971 $ — $ 4,603 $ 252 $ 4,855 Corporate debt $ 1,366 $ — $ 1,491 $ — $ 1,491 (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 . |
Offsetting Assets and Liabili34
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 (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, 2015 Assets: Deposits paid for securities borrowed (1)(5) $ 120 $ — $ 120 $ (94 ) $ (18 ) $ 8 Total $ 120 $ — $ 120 $ (94 ) $ (18 ) $ 8 Liabilities: Deposits received for securities loaned (2)(6) 1,535 — 1,535 (94 ) (1,314 ) 127 Repurchase agreements (2)(4) 82 — 82 — (81 ) 1 Derivative liabilities (2)(3) 11 — 11 — (11 ) — Total $ 1,628 $ — $ 1,628 $ (94 ) $ (1,406 ) $ 128 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: Deposits received for securities loaned (2)(6) 1,649 — 1,649 (188 ) (1,332 ) 129 Repurchase agreements (2)(4) 3,672 — 3,672 — (3,671 ) 1 Derivative liabilities (2)(3) 30 — 30 (15 ) (15 ) — Total $ 5,351 $ — $ 5,351 $ (203 ) $ (5,018 ) $ 130 (1) Net amount of deposits paid for securities borrowed and derivative assets presented in the consolidated balance sheet are reflected in the receivables from brokers, dealers and clearing organizations and other assets line items, respectively. (2) Net amount of deposits received for securities loaned, repurchase agreements and derivative liabilities presented in the consolidated balance sheet are reflected in the payables to brokers, dealers and clearing organizations, other borrowings and other liabilities line items, respectively. (3) Excludes net accrued interest payable of $3 million and $7 million at December 31, 2015 and 2014 , 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 for December 31, 2015 and available-for-sale securities at fair value and held-to-maturity securities at amortized cost for December 31, 2014 . (5) Included in the gross amounts of deposits paid for securities borrowed was $34 million and $278 million at December 31, 2015 and 2014 , 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 counterparties under the Company’s master securities loan agreements. (6) Included in the gross amounts of deposits received for securities loaned was $722 million and $1.1 billion at December 31, 2015 and 2014 , 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 counterparties under the Company’s master securities loan agreements. |
Available-for-Sale and Held-t35
Available-for-Sale and Held-to-Maturity Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 are shown in the following tables (dollars in millions): Amortized Cost Gross Unrealized / Unrecognized Gains Gross Unrealized / Unrecognized Losses Fair Value December 31, 2015: Available-for-sale securities: Debt securities: Agency mortgage-backed securities and CMOs $ 11,888 $ 41 $ (166 ) $ 11,763 Agency debentures 551 18 (12 ) 557 U.S. Treasuries 147 — (4 ) 143 Agency debt securities 55 — — 55 Municipal bonds 35 — — 35 Corporate bonds 5 — (1 ) 4 Total debt securities 12,681 59 (183 ) 12,557 Publicly traded equity securities (1) 33 — (1 ) 32 Total available-for-sale securities $ 12,714 $ 59 $ (184 ) $ 12,589 Held-to-maturity securities: Agency residential mortgage-backed securities and CMOs $ 10,353 $ 149 $ (58 ) $ 10,444 Agency debentures 127 — (2 ) 125 Agency debt securities 2,523 34 (13 ) 2,544 Other non-agency debt securities 10 — — 10 Total held-to-maturity securities $ 13,013 $ 183 $ (73 ) $ 13,123 December 31, 2014: Available-for-sale securities: Debt securities: Agency 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 (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, 2015 are shown below (dollars in millions): Amortized Cost Fair Value Available-for-sale debt securities: Due within one year $ — $ — Due within one to five years 41 41 Due within five to ten years 2,408 2,362 Due after ten years 10,232 10,154 Total available-for-sale debt securities $ 12,681 $ 12,557 Held-to-maturity debt securities: Due within one year $ 43 $ 43 Due within one to five years 1,166 1,203 Due within five to ten years 3,611 3,643 Due after ten years 8,193 8,234 Total held-to-maturity debt securities $ 13,013 $ 13,123 |
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, 2015 and 2014 (dollars in millions): Less than 12 Months 12 Months or More Total Fair Value Unrealized / Unrecognized Losses Fair Value Unrealized / Unrecognized Losses Fair Value Unrealized / Unrecognized Losses December 31, 2015: Available-for-sale securities: Debt securities: Agency mortgage-backed securities and CMOs $ 6,832 $ (88 ) $ 2,496 $ (78 ) $ 9,328 $ (166 ) Agency debentures 329 (12 ) 9 — 338 (12 ) U.S. Treasuries 143 (4 ) — — 143 (4 ) Agency debt securities 55 — — — 55 — Municipal bonds — — 15 — 15 — Corporate bonds — — 4 (1 ) 4 (1 ) Publicly traded equity securities 32 (1 ) — — 32 (1 ) Total temporarily impaired available-for-sale securities $ 7,391 $ (105 ) $ 2,524 $ (79 ) $ 9,915 $ (184 ) Held-to-maturity securities: Agency mortgage-backed securities and CMOs $ 2,807 $ (25 ) $ 1,495 $ (33 ) $ 4,302 $ (58 ) Agency debentures 114 (2 ) — — 114 (2 ) Agency debt securities 1,006 (10 ) 134 (3 ) 1,140 (13 ) Total temporarily impaired held-to-maturity securities $ 3,927 $ (37 ) $ 1,629 $ (36 ) $ 5,556 $ (73 ) December 31, 2014: Available-for-sale securities: Debt securities: Agency 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 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 ) |
Gains (Losses) on Loans and Investments | The detailed components of the gains (losses) on securities and other line item on the consolidated statement of income for the years ended December 31, 2015 , 2014 and 2013 are as follows (dollars in millions): Year Ended December 31, 2015 2014 2013 Reclassification of deferred losses on cash flow hedges $ (370 ) $ — $ — Hedge ineffectiveness (1 ) (10 ) 1 Gains on available-for-sale securities, net: Gains on available-for-sale securities 58 $ 42 $ 69 Losses on available-for-sale securities (20 ) — (8 ) Subtotal 38 42 61 Gains (losses) on loans, net 2 4 (1 ) Gains (losses) on securities and other $ (331 ) $ 36 $ 61 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Total Loans Receivable, Net [Table Text Block] | Loans receivable, net at December 31, 2015 and 2014 are summarized as follows (dollars in millions): December 31, 2015 2014 One- to four-family $ 2,488 $ 3,060 Home equity 2,114 2,834 Consumer and other 341 455 Total loans receivable 4,943 6,349 Unamortized premiums, net 23 34 Allowance for loan losses (353 ) (404 ) Total loans receivable, net $ 4,613 $ 5,979 |
Loans Receivable, Allowance for Loan Losses | The following table provides a roll forward by loan portfolio of the allowance for loan losses for the year ended December 31, 2015 , 2014 and 2013 (dollars in millions): Year Ended December 31, 2015 One- to Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 27 $ 367 $ 10 $ 404 Provision (benefit) for loan losses 15 (55 ) — (40 ) Charge-offs (2 ) (31 ) (11 ) (44 ) Recoveries (1) — 26 7 33 Charge-offs, net (2 ) (5 ) (4 ) (11 ) Allowance for loan losses, end of period $ 40 $ 307 $ 6 $ 353 Year Ended December 31, 2014 One- to Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 102 $ 326 $ 25 $ 453 Provision (benefit) for loan losses (42 ) 82 (4 ) 36 Charge-offs (44 ) (65 ) (17 ) (126 ) Recoveries (1) 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 Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 184 $ 257 $ 40 $ 481 Provision (benefit) 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 (1) Includes one-time payments from third party mortgage originators of $2 million and $11 million to satisfy in full all pending and future repurchase requests with them for the years ended December 31, 2015 and 2014 , respectively. The following table presents 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 by loan class at December 31, 2015 and 2014 (dollars in millions): Recorded Investment Allowance for Loan Losses December 31, December 31, 2015 2014 2015 2014 Collectively evaluated for impairment: One- to four-family $ 2,219 $ 2,764 $ 31 $ 18 Home equity 1,915 2,625 255 310 Consumer and other 344 461 6 10 Total collectively evaluated for impairment 4,478 5,850 292 338 Individually evaluated for impairment: One- to four-family 286 316 9 9 Home equity 202 217 52 57 Total individually evaluated for impairment 488 533 61 66 Total $ 4,966 $ 6,383 $ 353 $ 404 |
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, 2015 and 2014 (dollars in millions): One- to Four-Family Home Equity December 31, December 31, Current LTV/CLTV (1) 2015 2014 2015 2014 <=80% $ 1,519 $ 1,757 $ 843 $ 1,081 80%-100% 609 807 549 755 100%-120% 227 311 420 557 >120% 133 185 302 441 Total mortgage loans receivable $ 2,488 $ 3,060 $ 2,114 $ 2,834 Average estimated current LTV/CLTV (2) 77 % 79 % 90 % 92 % Average LTV/CLTV at loan origination (3) 71 % 71 % 81 % 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 home equity installment loans and maximum available line for home equity lines of credit. One- to Four-Family Home Equity December 31, December 31, Current FICO (1) 2015 2014 2015 2014 >=720 $ 1,423 $ 1,734 $ 1,069 $ 1,487 719 - 700 246 296 222 292 699 - 680 198 260 183 238 679 - 660 150 197 152 203 659 - 620 198 237 203 258 <620 273 336 285 356 Total mortgage loans receivable $ 2,488 $ 3,060 $ 2,114 $ 2,834 (1) FICO scores are updated on a quarterly basis; however, there were approximately $39 million and $49 million of one- to four-family loans at December 31, 2015 and 2014 , respectively, and $3 million and $4 million of home equity loans, respectively, for which the updated FICO scores were not available. For these loans, the current FICO distribution included the most recent FICO scores where available, otherwise the original FICO score was used. |
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, 2015 : Period of Conversion to Amortizing Loan % of One- to Four-Family Portfolio % of Home Equity Line of Credit Portfolio Already amortizing 61% 39% Through December 31, 2016 17% 45% Year ending December 31, 2017 22% 15% Year ending December 31, 2018 or later —% 1% |
Loans by Delinquency Category and Non-Performing Loans | The following table shows the comparative data for nonperforming loans at December 31, 2015 and 2014 (dollars in millions): December 31, 2015 2014 One- to four-family $ 263 $ 294 Home equity 154 165 Consumer and other 1 1 Total nonperforming loans receivable $ 418 $ 460 The following table shows total loans receivable by delinquency category at December 31, 2015 and 2014 (dollars in millions): Current 30-89 Days Delinquent 90-179 Days Delinquent 180+ Days Delinquent Total December 31, 2015 One- to four-family $ 2,279 $ 72 $ 26 $ 111 $ 2,488 Home equity 1,978 52 31 53 2,114 Consumer and other 334 6 1 — 341 Total loans receivable $ 4,591 $ 130 $ 58 $ 164 $ 4,943 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 |
Impaired Financing Receivables | The following table shows the average recorded investment and interest income recognized both on a cash and accrual basis for the Company’s TDRs during the year ended December 31, 2015 , 2014 and 2013 (dollars in millions): Average Recorded Investment Interest Income Recognized December 31, December 31, 2015 2014 2013 2015 2014 2013 One- to four-family $ 303 $ 576 $ 1,205 $ 9 $ 16 $ 33 Home equity 213 227 262 17 18 20 Total $ 516 $ 803 $ 1,467 $ 26 $ 34 $ 53 The following table shows detailed information related to the Company’s TDRs at December 31, 2015 and 2014 (dollars in millions): December 31, 2015 December 31, 2014 Recorded Investment in TDRs Specific Valuation Allowance Net Investment in TDRs Recorded Investment in TDRs Specific Valuation Allowance Net Investment in TDRs With a recorded allowance: One- to four-family $ 72 $ 9 $ 63 $ 88 $ 9 $ 79 Home equity $ 111 $ 52 $ 59 $ 118 $ 57 $ 61 Without a recorded allowance: (1) One- to four-family $ 214 $ — $ 214 $ 228 $ — $ 228 Home equity $ 91 $ — $ 91 $ 99 $ — $ 99 Total: One- to four-family $ 286 $ 9 $ 277 $ 316 $ 9 $ 307 Home equity $ 202 $ 52 $ 150 $ 217 $ 57 $ 160 (1) Represents loans where the discounted cash flow analysis or collateral value is equal to or exceeds the recorded investment in the loan. The following table shows a summary of the Company’s recorded investment in TDRs that were on accrual and nonaccrual status, further disaggregated by delinquency status, in addition to the recorded investment in TDRs at December 31, 2015 and 2014 (dollars in millions): Nonaccrual TDRs Accrual TDRs (1) Current (2) 30-89 Days Delinquent 90-179 Days Delinquent 180+ Days Delinquent Total Recorded Investment in TDRs (3)(4) December 31, 2015 One- to four-family $ 106 $ 106 $ 19 $ 8 $ 47 $ 286 Home equity 120 42 11 8 21 202 Total $ 226 $ 148 $ 30 $ 16 $ 68 $ 488 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 (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 $283 million and $314 million at December 31, 2015 and 2014 , respectively. For home equity loans, the recorded investment in TDRs represents the unpaid principal balance. (4) Total recorded investment in TDRs at December 31, 2015 consisted of $334 million of loans modified as TDRs and $154 million of loans that have been charged off due to bankruptcy notification. 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. |
Troubled Debt Restructurings - Modifications | 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, 2015 , 2014 and 2013 (dollars in millions): Year Ended December 31, 2015 Interest Rate Reduction Number of Loans Principal Forgiven Principal Deferred Re-age/ Extension/ Interest Capitalization Other with Other Total One- to four-family 34 $ — $ 1 $ 9 $ — $ 3 $ 13 Home equity 367 — — 3 2 19 24 Total 401 $ — $ 1 $ 12 $ 2 $ 22 $ 37 Year Ended December 31, 2014 Interest Rate Reduction Number of Principal Principal Deferred Re-age/ Other with Other Total 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 Deferred Re-age/ Other with Other Total 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 The following table shows the recorded investment in modifications that experienced a payment default within 12 months after the modification for the years ended December 31, 2015 , 2014 and 2013 (dollars in millions): Year Ended December 31, 2015 2014 2013 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Recorded One- to four-family (1) 7 $ 3 27 $ 9 142 $ 53 Home equity (2)(3) 90 5 55 3 69 3 Total 97 $ 8 82 $ 12 211 $ 56 (1) For years ended December 31, 2015 , 2014 and 2013 less than $1 million , $1 million and $18 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, 2015 , 2014 and 2013, $3 million , $1 million and $1 million , respectively, of the recorded investment in home equity loans that had a payment default in the trailing 12 months was classified as current. (3) The majority of these home equity modifications during the year ended December 31, 2015 experienced servicer transfers during this same period. |
Accounting for Derivative Ins37
Accounting for Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 (dollars in millions): Fair Value Notional Asset (1) Liability (2) Net (3) December 31, 2015 Interest rate contracts: Cash flow hedges $ — $ — $ — $ — Fair value hedges 2,204 10 (55 ) (45 ) Total derivatives designated as hedging instruments (4) $ 2,204 $ 10 $ (55 ) $ (45 ) December 31, 2014 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 ) (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, 2015 and 2014 . |
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 summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in cash flow hedges on accumulated other comprehensive loss and on the consolidated statement of income for the years ended December 31, 2015 , 2014 and 2013 (dollars in millions): For the Year Ended December 31, 2015 2014 2013 Gains (losses) on derivatives recognized in OCI (effective portion), net of tax $ (10 ) $ (39 ) $ 67 Losses reclassified from AOCI into earnings (effective portion), net of tax (1) $ (271 ) $ (76 ) $ (87 ) Cash flow hedge ineffectiveness gains (2) $ — $ — $ 1 (1) Includes the reclassification of losses deferred in accumulated other comprehensive loss into earnings related to cash flow hedges as a result of the termination of repurchase agreements and FHLB advances during the year ended December 31, 2015. (2) 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 (losses) on securities and other line item in the consolidated statement of income . |
Fair Value Hedging [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Effect of Derivatives designated as Fair Value Hedges and Related Hedged Items | The following table summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in fair value hedges and related hedged items on the consolidated statement of income for the years ended December 31, 2015 , 2014 and 2013 (dollars in millions): Year Ended December 31, 2015 2014 Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Agency debentures $ (3 ) $ 3 $ — $ (100 ) $ 91 $ (9 ) Agency mortgage-backed securities (4 ) 3 (1 ) (33 ) 32 (1 ) Total gains (losses) included in earnings $ (7 ) $ 6 $ (1 ) $ (133 ) $ 123 $ (10 ) Year Ended December 31, 2013 Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Agency debentures $ 73 $ (72 ) $ 1 Agency mortgage-backed securities 34 (35 ) (1 ) Total gains (losses) included in earnings $ 107 $ (107 ) $ — (1) Reflected in the gains (losses) on securities and other line item on the consolidated statement of income . |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net consisted of the following assets at December 31, 2015 and 2014 (dollars in millions): December 31, 2015 December 31, 2014 Gross Amount Accumulated Depreciation and Amortization Net Amount Gross Amount Accumulated Depreciation and Amortization Net Amount Software $ 490 $ (388 ) $ 102 $ 487 $ (391 ) $ 96 Leasehold improvements 116 (91 ) 25 114 (84 ) 30 Equipment 127 (84 ) 43 102 (76 ) 26 Buildings 72 (28 ) 44 72 (26 ) 46 Furniture and fixtures 22 (20 ) 2 23 (21 ) 2 Land 3 — 3 3 — 3 Construction in progress 17 — 17 42 — 42 Total $ 847 $ (611 ) $ 236 $ 843 $ (598 ) $ 245 |
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 Payments Minimum Sublease Proceeds Years ending December 31, 2016 $ 4 $ (3 ) 2017 4 (3 ) 2018 5 (3 ) 2019 5 (3 ) 2020 5 (3 ) Thereafter 19 (6 ) Total $ 42 $ (21 ) |
Goodwill and Other Intangible39
Goodwill and Other Intangibles, Net (Table) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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 Original Useful Life (Years) Weighted Average Remaining Useful Life (Years) Gross Amount Accumulated Amortization Net Amount December 31, 2015 20 10 $ 435 $ (261 ) $ 174 December 31, 2014 20 11 $ 435 $ (241 ) $ 194 |
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, 2016 $ 20 2017 19 2018 19 2019 18 2020 18 Thereafter 80 Total future amortization expense $ 174 |
Receivables from and Payables40
Receivables from and Payables to Brokers, Dealers and Clearing Organizations Receivables from and Payables to Brokers, Dealers and Clearing Organizations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Schedule of Due to (from) Broker-Dealers and Clearing Organizations [Table Text Block] | Receivables from and payables to brokers, dealers and clearing organizations consist of the following (in millions): December 31, 2015 December 31, 2014 Receivables: Securities borrowed $ 120 $ 474 Receivables from clearing organizations 341 313 Other 59 97 Total $ 520 $ 884 Payables: Securities loaned $ 1,535 $ 1,649 Payables to clearing organizations 8 9 Other 33 41 Total $ 1,576 $ 1,699 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Schedule Of Deposits By Type | Deposits are summarized as follows (dollars in millions): Amount Weighted-Average Rate December 31, December 31, 2015 2014 2015 2014 Sweep deposits (1) $ 24,018 $ 19,119 0.01 % 0.03 % Complete savings deposits 3,357 3,753 0.01 % 0.01 % Checking deposits 1,239 1,137 0.03 % 0.03 % Other money market and savings deposits 792 833 0.01 % 0.01 % Time deposits (2) 39 48 0.38 % 0.50 % Total deposits (3) $ 29,445 $ 24,890 0.01 % 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, 2015 and 2014 , the Company had $173 million and $141 million in non-interest bearing deposits, respectively. |
Scheduled Maturities of Time Deposits Table | At December 31, 2015 , scheduled maturities of time deposits were as follows (dollars in millions): Years ending December 31, 2016 $ 28 2017 5 2018 3 2019 1 2020 2 Thereafter — Subtotal 39 Unamortized discount, net — Total time deposits $ 39 |
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, 2015 2014 2015 2014 Three months or less $ — $ 1 $ — $ — Three through six months 1 1 — — Six through twelve months 2 2 — — Over twelve months 1 2 1 1 Total certificates of deposit $ 4 $ 6 $ 1 $ 1 |
Other Borrowings (Tables)
Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Borrowings Disclosure [Abstract] | |
Schedule Of Maturities Summary Of Other Borrowings | Securities sold under agreements to repurchase, FHLB advances and TRUPs at December 31, 2015 and 2014 , were as follows (dollars in millions): December 31, 2015 December 31, 2014 Trust preferred securities (1) $ 409 $ 428 Securities sold under agreements to repurchase and FHLB advances: Repurchase Agreements (2) $ 82 $ 3,672 FHLB Advances — 920 Fair value hedge adjustments and deferred costs — (49 ) Total securities sold under agreements to repurchase and FHLB advances 82 4,543 Total other borrowings $ 491 $ 4,971 (1) The Company's TRUPs do not begin maturing until 2031 . (2) The maximum amount at any month end for repurchase agreements was $3.8 billion and $4.9 billion for the years ended December 31, 2015 , respectively. |
Schedule Of Outstanding Trusts | The face values of outstanding trusts at December 31, 2015 are shown below (dollars in millions): Trusts Face Value Maturity Date Annual Interest Rate ETBH Capital Trust II (1) $ — 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 96 2037 1.90%-2.00% above 3-month LIBOR Total $ 414 (1) The TRUPs were redeemed during December 2015 but the trust was not legally dissolved until early 2016. |
Corporate Debt (Tables)
Corporate Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Corporate Debt Instruments | Corporate debt at December 31, 2015 and 2014 is outlined in the following table (dollars in millions): Face Value Discount Net December 31, 2015 Interest-bearing notes: 5 3 / 8 % Notes, due 2022 $ 540 $ (6 ) $ 534 4 5 / 8 % Notes, due 2023 460 (5 ) 455 Total interest-bearing notes 1,000 (11 ) 989 Non-interest-bearing debt: 0% Convertible debentures, due 2019 8 — 8 Total corporate debt $ 1,008 $ (11 ) $ 997 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 |
Schedule of Maturities of Corporate Debt [Table Text Block] | Scheduled principal payments of corporate debt at December 31, 2015 were as follows (dollars in millions): Years ending December 31, 2016 $ — 2017 — 2018 — 2019 8 2020 — Thereafter 1,000 Total future principal payments of corporate debt 1,008 Unamortized discount (11 ) Total corporate debt $ 997 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , 2014 and 2013 were as follows (dollars in millions): Year Ended December 31, 2015 2014 2013 Current income tax expense (benefit): Federal $ (5 ) $ — $ — State (5 ) 4 3 Foreign 5 — — Total current (5 ) 4 3 Deferred income tax expense (benefit): Federal (145 ) 152 127 State (31 ) 3 (20 ) Foreign — — — Total deferred (176 ) 155 107 Non-current income tax expense (benefit) (1) 4 — (1 ) Income tax expense (benefit) $ (177 ) $ 159 $ 109 (1) Non-current income tax expense (benefit) primarily relates to amortization for investments in qualified affordable housing projects recognized under the proportional amortization method. |
Schedule of Income before Income Tax, Domestic and Foreign | The following table presents the components of income before income tax expense (benefit) for the years ended December 31, 2015 , 2014 and 2013 (dollars in millions): Year Ended December 31, 2015 2014 2013 Domestic $ 84 $ 438 $ 186 Foreign 7 14 9 Income before income tax expense (benefit) $ 91 $ 452 $ 195 |
Summary of Income Tax Contingencies | 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 2008-2015 United Kingdom 2013-2015 United States 2012-2015 Various states (1) 2007-2015 (1) Major state tax jurisdictions include California, Georgia, Illinois, New Jersey, New York and Virginia. The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2015, 2014, and 2013 (dollars in millions): Year Ended December 31, 2015 2014 2013 Unrecognized tax benefits, beginning of period $ 330 $ 333 $ 492 Additions based on tax positions related to prior years 5 12 10 Additions based on tax positions related to current year 2 — — Reductions based on tax positions related to prior years (304 ) (14 ) (163 ) Settlements with taxing authorities (3 ) — (5 ) Statute of limitations lapses (1 ) (1 ) (1 ) Unrecognized tax benefits, end of period $ 29 $ 330 $ 333 |
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, 2015 and 2014 are summarized in the following table (dollars in millions): December 31, 2015 2014 Deferred tax assets: Net operating losses $ 782 $ 632 Reserves and allowances, net 482 601 Mark to market 158 110 Deferred compensation 44 43 Tax credits 44 37 Basis differences in investments 10 9 Other 28 1 Total deferred tax assets 1,548 1,433 Valuation allowance (82 ) (91 ) Total deferred tax assets, net of valuation allowance 1,466 1,342 Deferred tax liabilities: Depreciation and amortization (433 ) (387 ) Other — (4 ) Total deferred tax liabilities (433 ) (391 ) Net deferred tax assets, net $ 1,033 $ 951 |
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, 2015, 2014 and 2013: Year Ended December 31, 2015 2014 2013 Federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 0.2 2.0 2.8 Difference between statutory rate and foreign effective tax rate (2.4 ) (1.0 ) (1.4 ) Tax exempt income (0.5 ) (0.1 ) (0.3 ) Disallowed executive compensation 6.5 0.6 0.9 Change in valuation allowance 0.1 2.2 1.1 Tax credits (3.8 ) (0.6 ) (1.8 ) Estimated reserve for uncertain tax positions 4.7 (0.3 ) (2.6 ) Deferred tax adjustments (1) 3.5 (3.4 ) 4.5 Tax on undistributed earnings and profits in certain foreign subsidiaries 3.9 1.1 2.4 Settled IRS examination (241.5 ) — — Tax impact of exit of market making business — — 16.4 Other (0.4 ) (0.3 ) (1.1 ) Effective tax rate (194.7 )% 35.2 % 55.9 % (1) Includes the impact of New York city tax legislative changes of (5.8)% during the year ended December 31, 2015 and New York state tax legislative changes of (1.8)% during the year ended December 31, 2014. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule Of Shareholders Equity Activity [Table Text Block] | The activity in shareholders’ equity during the year ended December 31, 2015 is summarized in the following table (dollars in millions): Common Stock / Additional Paid-In Capital Accumulated Deficit / Other Comprehensive Loss Total Beginning balance, December 31, 2014 $ 7,353 $ (1,978 ) $ 5,375 Net income — 268 268 Net change from available-for-sale securities — (108 ) (108 ) Net change from cash flow hedging instruments — 261 261 Other (1) 6 (3 ) 3 Ending balance, December 31, 2015 $ 7,359 $ (1,560 ) $ 5,799 (1) Other includes employee share-based compensation, conversions of convertible debentures, repurchase of common stock, and changes in accumulated other comprehensive loss from foreign currency translation. |
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, 2015 , 2014 and 2013 (dollars in millions): Available-for-sale Securities Cash Flow Hedging Instruments Foreign Currency Translation Total Beginning balance, December 31, 2014 $ 7 $ (261 ) $ 5 $ (249 ) Other comprehensive loss before reclassifications (84 ) (10 ) (3 ) (97 ) Amounts reclassified from accumulated other comprehensive loss (24 ) 271 — 247 Net change (108 ) 261 (3 ) 150 Ending balance, December 31, 2015 $ (101 ) $ — $ 2 $ (99 ) Available-for-sale Securities Cash Flow Hedging Instruments Foreign Currency Translation Total 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 Securities Cash Flow Hedging Instruments Foreign Currency Translation Total 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 ) |
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, 2015 , 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 Year Ended December 31, 2015 2014 2013 Available-for-sale securities: $ 39 $ 42 $ 60 Gains (losses) on securities and other (15 ) (16 ) (23 ) Tax expense $ 24 $ 26 $ 37 Reclassification into earnings, net Cash flow hedging instruments: $ (370 ) $ — $ — Gains (losses) on securities and other — — 8 Operating interest income (69 ) (125 ) (147 ) Operating interest expense (439 ) (125 ) (139 ) Reclassification into earnings, before tax 168 49 52 Tax benefit $ (271 ) $ (76 ) $ (87 ) Reclassification into earnings, net |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following table presents a reconciliation of basic and diluted earnings per share (in millions, except share data and per share amounts): Year Ended December 31, 2015 2014 2013 Basic: Net income $ 268 $ 293 $ 86 Basic weighted-average shares outstanding (in thousands) 290,762 288,705 286,991 Basic earnings per share $ 0.92 $ 1.02 $ 0.30 Diluted: Net income $ 268 $ 293 $ 86 Basic weighted-average shares outstanding (in thousands) 290,762 288,705 286,991 Effect of dilutive securities: Weighted-average convertible debentures (in thousands) 2,820 3,999 4,125 Weighted-average options and restricted stock issued to employees (in thousands) 1,429 1,399 1,473 Diluted weighted-average shares outstanding (in thousands) 295,011 294,103 292,589 Diluted earnings per share $ 0.91 $ 1.00 $ 0.29 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Schedule Of Subsidiary Compliance With Regulatory Capital Requirements | The tables below summarize the minimum capital requirements and excess capital for the Company’s broker-dealer subsidiaries at December 31, 2015 and 2014 (dollars in millions): Required Net Capital Net Capital Excess Net Capital December 31, 2015: E*TRADE Clearing (1) $ 161 $ 1,007 $ 846 E*TRADE Securities (1)(2) — 49 49 Other broker-dealers 1 15 14 Total (3) $ 162 $ 1,071 $ 909 December 31, 2014: E*TRADE Clearing (1) $ 170 $ 795 $ 625 E*TRADE Securities (1) — 459 459 Other broker-dealers 1 19 18 Total $ 171 $ 1,273 $ 1,102 (1) Elected to use the Alternative method to compute net capital. The net capital requirement was $250,000 for E*TRADE Securities for both periods presented. (2) E*TRADE Securities was moved out from under E*TRADE Bank in February 2015 and subsequently paid dividends of $565 million to the parent company during the year ended December 31, 2015 . (3) E*TRADE Clearing and E*TRADE Securities paid cash dividends to the parent company of $124 million and $24 million , respectively, subsequent to December 31, 2015. |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | E*TRADE Financial and E*TRADE Bank were categorized as "well capitalized" under the regulatory framework for prompt corrective action for the periods presented in the table below (dollars in millions): December 31, 2015 (1) December 31, 2014 (1) Actual Well Capitalized Minimum Capital Excess Capital Actual Well Capitalized Minimum Capital Excess Capital Amount Ratio Amount Ratio Amount Amount Ratio Amount Ratio Amount E*TRADE Bank: (2) Tier 1 leverage $ 3,075 9.7 % $ 1,579 5.0 % $ 1,496 $ 4,548 10.6 % $ 2,143 5.0 % $ 2,405 Tier 1 risk-based capital $ 3,075 36.5 % $ 674 8.0 % $ 2,401 $ 4,548 25.7 % $ 1,063 6.0 % $ 3,485 Total risk-based capital $ 3,185 37.8 % $ 842 10.0 % $ 2,343 $ 4,772 26.9 % $ 1,772 10.0 % $ 3,000 Common equity Tier 1 capital (3) $ 3,075 36.5 % $ 548 6.5 % $ 2,527 N/A N/A N/A N/A N/A (1) Due to the change in regulatory requirements described above, the December 31, 2015 ratios were calculated under Basel III requirements and the December 31, 2014 ratios were calculated under Basel I requirements. (2) E*TRADE Securities was moved out from under E*TRADE Bank in February 2015. E*TRADE Clearing was moved out from under E*TRADE Bank in July 2015. (3) The Basel III rule established Common Equity Tier 1 capital as a new tier of capital. December 31, 2015 Actual Well Capitalized Minimum Capital Excess Capital Amount Ratio Amount Ratio Amount E*TRADE Financial: Tier 1 leverage $ 3,747 9.0 % $ 2,093 5.0 % $ 1,654 Tier 1 risk-based capital $ 3,747 39.3 % $ 763 8.0 % $ 2,984 Total risk-based capital $ 4,186 43.9 % $ 954 10.0 % $ 3,232 Common equity Tier 1 capital $ 3,747 39.3 % $ 620 6.5 % $ 3,127 |
Lease Arrangements (Tables)
Lease Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2016 $ 26 2017 26 2018 23 2019 21 2020 15 Thereafter 22 Total future minimum lease payments $ 133 Sublease proceeds (3 ) Net lease commitments $ 130 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 Trading and Balance Sheet Corporate/ Total Net operating interest income $ 702 $ 383 $ 1 $ 1,086 Total non-interest income (loss) 667 (325 ) — 342 Total net revenue 1,369 58 1 1,428 Provision (benefit) for loan losses — (40 ) — (40 ) Total operating expense 827 105 275 1,207 Income (loss) before other income (expense) and income taxes 542 (7 ) (274 ) 261 Total other income (expense) — — (170 ) (170 ) Income (loss) before income taxes $ 542 $ (7 ) $ (444 ) $ 91 Income tax benefit (177 ) Net income $ 268 Year Ended December 31, 2014 Trading and Balance Sheet Corporate/ Total Net operating interest income $ 618 $ 455 $ 1 $ 1,074 Total non-interest income 697 43 — 740 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 Net operating interest income $ 527 $ 442 $ — $ 969 Total non-interest income 690 64 — 754 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 |
Reconciliation of Assets from Segment to Consolidated | Segment Assets Trading and Investing Balance Sheet Management Corporate/ Other (1) Total As of December 31, 2015 $ 11,554 $ 33,278 $ 595 $ 45,427 As of December 31, 2014 $ 12,032 $ 33,075 $ 423 $ 45,530 As of December 31, 2013 $ 10,820 $ 34,784 $ 676 $ 46,280 (1) Corporate/Other category includes corporate assets and other elimination adjustments, such as a line of credit between the operating segments, not allocated to the Company's operating segments. |
Condensed Financial Informati50
Condensed Financial Information (Parent Company Only) (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |
Condensed Statement of Comprehensive Income [Table Text Block] | 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, 2015 2014 2013 Dividends from subsidiaries $ 859 $ 311 $ 193 Other revenues 371 333 281 Total net revenue 1,230 644 474 Total operating expense 487 421 359 Income before other income (expense), income tax benefit, and equity in income (loss) of consolidated subsidiaries 743 223 115 Total other income (expense) (127 ) (166 ) (108 ) Income before income tax benefit and equity in income (loss) of consolidated subsidiaries 616 57 7 Income tax benefit (287 ) (88 ) (76 ) Equity in undistributed income (loss) of subsidiaries (635 ) 148 3 Net income 268 293 86 Other comprehensive income (loss) 150 204 (143 ) Comprehensive income (loss) $ 418 $ 497 $ (57 ) |
Condensed Balance Sheet [Table Text Block] | CONDENSED BALANCE SHEET (In millions) December 31, 2015 2014 ASSETS Cash and equivalents $ 432 $ 220 Property and equipment, net 156 165 Investment in consolidated subsidiaries 5,434 5,763 Receivable from subsidiaries 57 31 Deferred tax assets, net 739 335 Other assets 173 410 Total assets $ 6,991 $ 6,924 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Corporate debt $ 997 $ 1,366 Other liabilities 195 183 Total liabilities 1,192 1,549 Total shareholders’ equity 5,799 5,375 Total liabilities and shareholders’ equity $ 6,991 $ 6,924 |
Condensed Cash Flow Statement [Table Text Block] | CONDENSED STATEMENT OF CASH FLOWS (In millions) Year Ended December 31, 2015 2014 2013 Cash flows from operating activities: Net income $ 268 $ 293 $ 86 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 44 38 40 Equity in undistributed (income) loss from subsidiaries 635 (148 ) (3 ) Losses on early extinguishment of debt 5 6 — Other (163 ) (28 ) (60 ) Net cash provided by operating activities 789 161 63 Cash flows from investing activities: Capital expenditures for property and equipment (33 ) (62 ) (24 ) Proceeds from sale of subsidiary — 76 — Cash contributions to subsidiaries (147 ) (29 ) (39 ) Other — — 4 Net cash used in investing activities (180 ) (15 ) (59 ) Cash flows from financing activities: Net proceeds from issuance of senior notes 460 540 — Payments on senior notes (800 ) (940 ) — Repurchases of common stock (50 ) — — Other (7 ) 68 2 Net cash provided by (used in) financing activities (397 ) (332 ) 2 Increase (decrease) in cash and equivalents 212 (186 ) 6 Cash and equivalents, beginning of period 220 406 400 Cash and equivalents, end of period $ 432 $ 220 $ 406 |
Quarterly Data (Unaudited) (Tab
Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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): 2015 2014 First Second Third Fourth First Second Third Fourth Total net revenue $ 456 $ 445 $ 73 $ 454 $ 475 $ 438 $ 440 $ 461 Net income (loss) $ 40 $ 292 $ (153 ) $ 89 $ 97 $ 69 $ 86 $ 41 Earnings (loss) per share: Basic $ 0.14 $ 1.01 $ (0.53 ) $ 0.31 $ 0.34 $ 0.24 $ 0.30 $ 0.14 Diluted $ 0.14 $ 0.99 $ (0.53 ) $ 0.30 $ 0.33 $ 0.24 $ 0.29 $ 0.14 |
Organization, Basis of Presen52
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Cash and Cash Equivalents [Abstract] | |||||
Overnight Cash, Federal Reserve | $ 1,600 | $ 900 | |||
Margin Receivables [Abstract] | |||||
Margin receivables securities pledged as collateral | 10,100 | 10,800 | |||
Margin receivable securities sold or repledged | $ 2,500 | 2,900 | |||
Loan and Lease Receivables, Impaired [Abstract] | |||||
Percentage of Loan To Value, For Assigning Higher Level Of Risk | 110.00% | ||||
Percentage of Combined Loan To Value, For Assigning Higher Level Of Risk | 125.00% | ||||
Credit Score For Assigning Higher Level Of Risk | 600 | ||||
Number Of Consecutive Payments For Modified Loans To Be Performing | 6 | ||||
Period For Bankruptcy Loans To Be Classified As Nonperforming | 60 days | ||||
Loans and Leases Receivable, Other Information [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 | 90 days | ||||
Number Of Consecutive Payments For Modified Loans To Be Performing | 6 | ||||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses | $ 353 | 404 | $ 453 | $ 481 | |
Total loans receivable, gross | 4,943 | 6,349 | |||
Additional Allowance For Loan Losses Resulting From An Extension In The Loss Emergence Period | 40 | ||||
Additional allowance due to methodology enhancement related to high risk loans | 45 | ||||
Allowance For Credit Losses, Qualitative Component | 13 | 37 | |||
Equity Method, Cost Method and Other Investments [Abstract] | |||||
Investment in FHLB stock | $ 15 | ||||
Principal Transactions [Abstract] | |||||
Gain (Loss) on Disposition of Business | 4 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 300,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 0 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 1 month 6 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 28 | 34 | 19 | ||
Share-based compensation | 34 | $ 24 | $ 20 | ||
Investments In Affordable Housing Projects [Abstract] | |||||
Amortization Method Qualified Affordable Housing Project Investments, Amortization | 5 | ||||
Affordable Housing Tax Credits and Other Tax Benefits, Amount | 4 | ||||
Amortization Method Qualified Affordable Housing Project Investments | $ 35 | ||||
2015 Plan [Member] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract] | |||||
Share-based Compensation Arrangement By Share Based Payment Award, Number Of Shares Authorized Unissued | shares | 12,200,000 | ||||
Previous Loss Emergence Period [Member] | One- to Four-Family and Home Equity [Member] | |||||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||
Loss Emergence Period Used To Forecast Loan Losses | 12 months | ||||
New Loss Emergence Period [Member] | One- to Four-Family and Home Equity [Member] | |||||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||
Loss Emergence Period Used To Forecast Loan Losses | 18 months | ||||
Property And Equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 3 years | ||||
Property And Equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 7 years | ||||
Software Development [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 4 years | ||||
Employee Stock Option [Member] | Minimum [Member] | |||||
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 | ||||
Employee Stock Option [Member] | Maximum [Member] | |||||
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 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common shares each restricted stock unit can be converted into | shares | 1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 3,100,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 25 | ||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||
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 | ||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||
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 | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common shares each performance share unit can be converted into | shares | 1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 100,000 |
Operating Interest Income and53
Operating Interest Income and Operating Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating interest income: | ||||
Loans | $ 230 | $ 297 | $ 395 | |
Available-for-sale securities | 244 | 288 | 279 | |
Held-to-maturity securities | 346 | 328 | 255 | |
Margin receivables | 276 | 264 | 224 | |
Securities borrowed and other | 119 | 102 | 54 | |
Total operating interest income(1) | 1,215 | 1,279 | 1,207 | |
Operating interest expense: | ||||
Securities sold under agreements to repurchase(2) | (69) | (123) | (148) | |
FHLB advances and other borrowings(2) | (48) | (65) | (68) | |
Deposits | (4) | (8) | (13) | |
Customer payables and other | (8) | (9) | (9) | |
Total operating interest expense(3) | (129) | (205) | (238) | |
Net operating interest income | 1,086 | 1,074 | 969 | |
Termination of legacy wholesale funding obligations | $ 4,400 | 4,400 | ||
Hedging Income (Expense), Operating Interest Income | (42) | (31) | (16) | |
Hedging Expense (Income) Operating Interest Expense | $ (74) | $ (132) | $ (153) |
Fair Value Disclosures (Details
Fair Value Disclosures (Details - Inputs) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Agency mortgage-backed securities [Member] | Weighted Average [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Coupon Rate | 2.85% | |
Agency CMOs [Member] | Weighted Average [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Coupon Rate | 2.73% | |
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 | $ 422,900 | $ 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 | 1,900,000 | 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 | 8,500 | 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 | 274,100 | 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 | 1,300,000 | 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 | 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 | 330,700 | 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 | 1,250,000 | 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 | $ 26,500 | $ 5,000 |
Fair Value Disclosures (Detai55
Fair Value Disclosures (Details - Recurring and Nonrecurring) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | $ 12,589,000 | $ 12,388,000 | |
Assets measured at fair value on recurring basis percentage of total assets | 28.00% | 27.00% | |
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | |||
Losses on goodwill measured at fair value | $ 0 | $ 0 | $ 142,000 |
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 | |
Fair value, assets, Level 2 to Level 1 transfers, amount | 0 | 0 | |
Fair value, liabilities, Level 1 to Level 2 transfers, amount | 0 | 0 | |
Fair value, liabilities, Level 2 to Level 1 transfers, amount | $ 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% | 1.00% | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | $ 12,589,000 | $ 12,388,000 | |
Derivative assets | 10,000 | 24,000 | |
Total assets measured at fair value on a recurring basis | 12,599,000 | 12,412,000 | |
Derivative Liability | 55,000 | 66,000 | |
Total liabilities measured at fair value on a recurring basis | 55,000 | 66,000 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total loans receivable | 63,000 | 78,000 | |
REO | 26,000 | 38,000 | |
Total Assets Measured at Fair Value On A Nonrecurring Basis | 89,000 | 116,000 | |
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 | 32,000 | 33,000 | |
Total assets measured at fair value on a recurring basis | 32,000 | 33,000 | |
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 | 12,557,000 | 12,355,000 | |
Derivative assets | 10,000 | 24,000 | |
Total assets measured at fair value on a recurring basis | 12,567,000 | 12,379,000 | |
Derivative Liability | 55,000 | 66,000 | |
Total liabilities measured at fair value on a recurring basis | 55,000 | 66,000 | |
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total loans receivable | 63,000 | 78,000 | |
REO | 26,000 | 38,000 | |
Total Assets Measured at Fair Value On A Nonrecurring Basis | 89,000 | 116,000 | |
Loans Receivable [Member] | |||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | |||
(Gains) losses measured at fair value | 21,000 | 40,000 | 98,000 |
Real Estate Owned [Member] | |||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | |||
(Gains) losses measured at fair value | 0 | (2,000) | (1,000) |
One- To Four-Family [Member] | Loans Receivable [Member] | |||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | |||
(Gains) losses measured at fair value | 7,000 | 10,000 | 40,000 |
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 | 41,000 | 46,000 | |
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 | 41,000 | 46,000 | |
Home Equity [Member] | Loans Receivable [Member] | |||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | |||
(Gains) losses measured at fair value | 14,000 | 30,000 | $ 58,000 |
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 | 22,000 | 32,000 | |
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 | 22,000 | 32,000 | |
Debt Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 12,557,000 | 12,355,000 | |
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 | 12,557,000 | 12,355,000 | |
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 | 12,557,000 | 12,355,000 | |
Agency Mortgage-Backed Securities and CMOs [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 11,763,000 | 11,164,000 | |
Agency 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 | 11,763,000 | 11,164,000 | |
Agency 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 | 11,763,000 | 11,164,000 | |
Agency Debentures [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 557,000 | 648,000 | |
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 | 557,000 | 648,000 | |
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 | 557,000 | 648,000 | |
U.S. Treasuries [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 143,000 | ||
U.S. Treasuries [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 143,000 | ||
U.S. Treasuries [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 | 143,000 | ||
Agency Debt Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 55,000 | 499,000 | |
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 | 55,000 | 499,000 | |
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 | 55,000 | 499,000 | |
Municipal Bonds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 35,000 | 40,000 | |
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 | 35,000 | 40,000 | |
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 | 35,000 | 40,000 | |
Corporate Bonds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 4,000 | 4,000 | |
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 | 4,000 | |
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 | 4,000 | |
Equity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 32,000 | 33,000 | |
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 | 32,000 | 33,000 | |
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 | $ 32,000 | $ 33,000 |
Fair Value Disclosures (Detai56
Fair Value Disclosures (Details - Level 3) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Level 3 recurring assets | $ 0 | $ 0 |
Level 3 recurring liabilities | $ 0 | $ 0 |
Fair Value Disclosures (Detai57
Fair Value Disclosures (Details - FV of Financial Instruments) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Cash and equivalents | $ 2,233 | $ 1,783 | $ 1,838 | $ 2,762 |
Cash required to be segregated under federal or other regulations | 1,057 | 555 | ||
Total held-to-maturity securities | 13,013 | 12,248 | ||
Receivables from brokers, dealers and clearing organizations | 520 | 884 | ||
Margin Receivables | 7,398 | 7,675 | ||
Total loans receivable, net | 4,613 | 5,979 | ||
Deposits | 29,445 | 24,890 | ||
Payables to brokers, dealers and clearing organizations | 1,576 | 1,699 | ||
Customer Payables | 6,544 | 6,455 | ||
Securities sold under agreements to repurchase | 82 | 3,672 | ||
Other borrowings | 491 | 4,971 | ||
Corporate debt | 997 | 1,366 | ||
Allowance for loan losses | 353 | 404 | 453 | 481 |
Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Cash and equivalents | 2,233 | 1,783 | ||
Cash required to be segregated under federal or other regulations | 1,057 | 555 | ||
Total held-to-maturity securities | 13,013 | 12,248 | ||
Receivables from brokers, dealers and clearing organizations | 520 | 884 | ||
Margin Receivables | 7,398 | 7,675 | ||
Total loans receivable, net | 4,613 | 5,979 | ||
Deposits | 29,445 | 24,890 | ||
Payables to brokers, dealers and clearing organizations | 1,576 | 1,699 | ||
Customer Payables | 6,544 | 6,455 | ||
Securities sold under agreements to repurchase | 82 | 3,672 | ||
FHLB advances and trust preferred securities | 409 | 1,299 | ||
Other borrowings | 491 | 4,971 | ||
Corporate debt | 997 | 1,366 | ||
Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Cash and equivalents | 2,233 | 1,783 | ||
Cash required to be segregated under federal or other regulations | 1,057 | 555 | ||
Total held-to-maturity securities | 13,123 | 12,476 | ||
Receivables from brokers, dealers and clearing organizations | 520 | 884 | ||
Margin Receivables | 7,398 | 7,675 | ||
Total loans receivable, net | 4,412 | 5,465 | ||
Deposits | 29,444 | 24,890 | ||
Payables to brokers, dealers and clearing organizations | 1,576 | 1,699 | ||
Customer Payables | 6,544 | 6,455 | ||
Securities sold under agreements to repurchase | 82 | 3,681 | ||
FHLB advances and trust preferred securities | 252 | 1,174 | ||
Other borrowings | 334 | 4,855 | ||
Corporate debt | 1,055 | 1,491 | ||
One- To Four-Family [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Allowance for loan losses | 40 | 27 | 102 | 184 |
One- To Four-Family [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 2,465 | 3,053 | ||
One- To Four-Family [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 2,409 | 2,742 | ||
Home Equity [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Allowance for loan losses | 307 | 367 | 326 | 257 |
Home Equity [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 1,810 | 2,475 | ||
Home Equity [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 1,660 | 2,274 | ||
Consumer And Other [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Allowance for loan losses | 6 | 10 | $ 25 | $ 40 |
Consumer And Other [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 338 | 451 | ||
Consumer And Other [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 343 | 449 | ||
Agency Mortgage-Backed Securities and CMOs [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 10,353 | 9,793 | ||
Agency Mortgage-Backed Securities and CMOs [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 10,353 | 9,793 | ||
Agency Mortgage-Backed Securities and CMOs [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 10,444 | 9,971 | ||
Agency Debentures [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 127 | 164 | ||
Agency Debentures [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 127 | 164 | ||
Agency Debentures [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 125 | 166 | ||
Agency Debt Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 2,523 | 2,281 | ||
Agency Debt Securities [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 2,523 | 2,281 | ||
Agency Debt Securities [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 2,544 | 2,329 | ||
Other Non-Agency Debt Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 10 | 10 | ||
Other Non-Agency Debt Securities [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 10 | 10 | ||
Other Non-Agency Debt Securities [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 10 | 10 | ||
Unfunded Commitments to Extend Credit [Member] | ||||
Supply Commitment [Line Items] | ||||
Supply Commitment, Remaining Minimum Amount Committed | 70 | |||
Level 1 [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Cash and equivalents | 2,233 | 1,783 | ||
Cash required to be segregated under federal or other regulations | 1,057 | 555 | ||
Level 2 [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 13,113 | 12,466 | ||
Receivables from brokers, dealers and clearing organizations | 520 | 884 | ||
Margin Receivables | 7,398 | 7,675 | ||
Deposits | 29,444 | 24,890 | ||
Payables to brokers, dealers and clearing organizations | 1,576 | 1,699 | ||
Customer Payables | 6,544 | 6,455 | ||
Securities sold under agreements to repurchase | 82 | 3,681 | ||
FHLB advances and trust preferred securities | 0 | 922 | ||
Other borrowings | 82 | 4,603 | ||
Corporate debt | 1,055 | 1,491 | ||
Level 2 [Member] | Agency Mortgage-Backed Securities and CMOs [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 10,444 | 9,971 | ||
Level 2 [Member] | Agency Debentures [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 125 | 166 | ||
Level 2 [Member] | Agency Debt Securities [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 2,544 | 2,329 | ||
Level 3 [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 10 | 10 | ||
Total loans receivable, net | 4,412 | 5,465 | ||
FHLB advances and trust preferred securities | 252 | 252 | ||
Other borrowings | 252 | 252 | ||
Level 3 [Member] | One- To Four-Family [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 2,409 | 2,742 | ||
Level 3 [Member] | Home Equity [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 1,660 | 2,274 | ||
Level 3 [Member] | Consumer And Other [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 343 | 449 | ||
Level 3 [Member] | Other Non-Agency Debt Securities [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | $ 10 | $ 10 |
Offsetting Assets and Liabili58
Offsetting Assets and Liabilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting Footnotes [Abstract] | ||
Interest Payable Excluded From Gross Amounts of Derivatives | $ 3,000,000 | $ 7,000,000 |
Securities Borrowed, Transacted Through Clearing Company | 34,000,000 | 278,000,000 |
Securities Loaned, Transacted Through Clearing Company | 722,000,000 | 1,100,000,000 |
Derivative Asset, Not Subject to Master Netting Arrangement | 10,000,000 | 0 |
Derivative Liability, Not Subject to Master Netting Arrangement | 44,000,000 | 36,000,000 |
Offsetting Assets [Abstract] | ||
Securities Borrowed, Gross | 120,000,000 | 474,000,000 |
Securities Borrowed, Liability | 0 | 0 |
Securities Borrowed | 120,000,000 | 474,000,000 |
Securities Borrowed, Financial Instruments, Not Offset | (94,000,000) | (188,000,000) |
Securities Borrowed, Collateral Received | (18,000,000) | (267,000,000) |
Securities Borrowed, Amount Offset Against Collateral | 8,000,000 | 19,000,000 |
Derivative Asset, Fair Value, Gross Asset | 24,000,000 | |
Derivative Asset, Fair Value, Gross Liability | 0 | |
Derivative Asset | 24,000,000 | |
Derivative Asset, Financial Instruments, Not Offset | (15,000,000) | |
Derivative Asset, Collateral Received | (3,000,000) | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 6,000,000 | |
Derivative Asset, Securities Borrowed, Gross | 120,000,000 | 498,000,000 |
Derivative Asset, Securities Borrowed, Liability | 0 | 0 |
Derivative Asset, Securities Borrowed | 120,000,000 | 498,000,000 |
Derivative Asset, Securities Borrowed, Financial Instruments Not Offset | (94,000,000) | (203,000,000) |
Derivative Asset, Securities Borrowed, Collateral Received | (18,000,000) | (270,000,000) |
Derivative Asset, Securities Borrowed Net | 8,000,000 | 25,000,000 |
Offsetting Liabilities [Abstract] | ||
Securities Loaned, Gross | 1,535,000,000 | 1,649,000,000 |
Securities Loaned, Asset | 0 | 0 |
Securities Loaned | 1,535,000,000 | 1,649,000,000 |
Securities Loaned, Financial Instruments, Not Offset | (94,000,000) | (188,000,000) |
Securities Loaned, Collateral Pledged | (1,314,000,000) | (1,332,000,000) |
Securities Loaned, Amount Offset Against Collateral | 127,000,000 | 129,000,000 |
Securities Sold under Agreements to Repurchase, Gross | 82,000,000 | 3,672,000,000 |
Securities Sold under Agreements to Repurchase, Asset | 0 | 0 |
Securities sold under agreements to repurchase | 82,000,000 | 3,672,000,000 |
Securities Sold under Agreements to Repurchase, Financial Instruments Not Offset | 0 | 0 |
Securities Sold under Agreements to Repurchase, Collateral Pledged | (81,000,000) | (3,671,000,000) |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 1,000,000 | 1,000,000 |
Derivative Liability, Fair Value, Gross Liability | 11,000,000 | 30,000,000 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability | 11,000,000 | 30,000,000 |
Derivative Liability, Financial Instruments, Not Offset | 0 | (15,000,000) |
Derivative Liability, Collateral Pledged | (11,000,000) | (15,000,000) |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Gross | 1,628,000,000 | 5,351,000,000 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Asset | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned | 1,628,000,000 | 5,351,000,000 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Financial Instruments Not Offset | (94,000,000) | (203,000,000) |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Collateral Pledged | (1,406,000,000) | (5,018,000,000) |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Amount Offset Against Collateral | 128,000,000 | $ 130,000,000 |
Equity Securities [Member] | Maturity Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Loaned, Gross Including Not Subject to Master Netting Arrangement | $ 1,500,000,000 |
Available-for-Sale Securities (
Available-for-Sale Securities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 12,714 | $ 12,341 |
Available-for-sale securities, gross unrealized gains | 59 | 154 |
Available-for-sale securities, gross unrealized losses | (184) | (107) |
Available-for-sale securities, fair value | 12,589 | 12,388 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 12,681 | 12,308 |
Available-for-sale securities, gross unrealized gains | 59 | 154 |
Available-for-sale securities, gross unrealized losses | (183) | (107) |
Available-for-sale securities, fair value | 12,557 | 12,355 |
Agency Mortgage-Backed Securities and CMOs [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 11,888 | 11,156 |
Available-for-sale securities, gross unrealized gains | 41 | 113 |
Available-for-sale securities, gross unrealized losses | (166) | (105) |
Available-for-sale securities, fair value | 11,763 | 11,164 |
Agency Debentures [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 551 | 620 |
Available-for-sale securities, gross unrealized gains | 18 | 28 |
Available-for-sale securities, gross unrealized losses | (12) | 0 |
Available-for-sale securities, fair value | 557 | 648 |
U.S. Treasuries [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 147 | |
Available-for-sale securities, gross unrealized gains | 0 | |
Available-for-sale securities, gross unrealized losses | (4) | |
Available-for-sale securities, fair value | 143 | |
Agency Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 55 | 487 |
Available-for-sale securities, gross unrealized gains | 0 | 12 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Available-for-sale securities, fair value | 55 | 499 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 35 | 40 |
Available-for-sale securities, gross unrealized gains | 0 | 1 |
Available-for-sale securities, gross unrealized losses | 0 | (1) |
Available-for-sale securities, fair value | 35 | 40 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 5 | 5 |
Available-for-sale securities, gross unrealized losses | (1) | (1) |
Available-for-sale securities, fair value | 4 | 4 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 33 | 33 |
Available-for-sale securities, gross unrealized losses | (1) | |
Available-for-sale securities, fair value | $ 32 | $ 33 |
Held-to-Maturity Securities (De
Held-to-Maturity Securities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | $ 13,013 | $ 12,248 |
Held-to-maturity securities, gross unrecognized gains | 183 | 273 |
Held-to-maturity securities, gross unrecognized losses | (73) | (45) |
Held-to-maturity securities, fair value | 13,123 | 12,476 |
Agency Mortgage-Backed Securities and CMOs [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 10,353 | 9,793 |
Held-to-maturity securities, gross unrecognized gains | 149 | 217 |
Held-to-maturity securities, gross unrecognized losses | (58) | (39) |
Held-to-maturity securities, fair value | 10,444 | 9,971 |
Agency Debentures [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 127 | 164 |
Held-to-maturity securities, gross unrecognized gains | 0 | 2 |
Held-to-maturity securities, gross unrecognized losses | (2) | 0 |
Held-to-maturity securities, fair value | 125 | 166 |
Agency Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 2,523 | 2,281 |
Held-to-maturity securities, gross unrecognized gains | 34 | 54 |
Held-to-maturity securities, gross unrecognized losses | (13) | (6) |
Held-to-maturity securities, fair value | 2,544 | 2,329 |
Other Non-Agency Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 10 | 10 |
Held-to-maturity securities, fair value | $ 10 | $ 10 |
Available-for-Sale and Held-t61
Available-for-Sale and Held-to-Maturity Securities (Details - Maturity) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-Sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale securities, due within one year, amortized cost | $ 0 | |
Available-for-sale securities, due within one to five years, amortized cost | 41 | |
Available-for-sale securities, due within five to ten years, amortized cost | 2,408 | |
Available-for-sale securities, due after ten years, amortized cost | 10,232 | |
Available-for-sale securities, amortized cost | 12,681 | |
Available-for-sale securities, due within one year, fair value | 0 | |
Available-for-sale securities, due within one to five years, fair value | 41 | |
Available-for-sale securities, due within five to ten years, fair value | 2,362 | |
Available-for-sale securities, due after ten years, fair value | 10,154 | |
Available-for-sale securities, fair value | 12,557 | |
Held-to-Maturity Securities, Debt Maturities [Abstract] | ||
Held-to-maturity securities, due within one year, amortized cost | 43 | |
Held-to-maturity securities, due within one to five years, amortized cost | 1,166 | |
Held-to-maturity securities, due within five to ten years, amortized cost | 3,611 | |
Held-to-maturity securities, due after ten years, amortized cost | 8,193 | |
Held-to-maturity securities, amortized cost | 13,013 | $ 12,248 |
Held-to-maturity securities, due within one year, fair value | 43 | |
Held-to-maturity securities, due within one to five years, fair value | 1,203 | |
Held-to-maturity securities, due within five to ten years, fair value | 3,643 | |
Held-to-maturity securities, due after ten years, fair value | 8,234 | |
Held-to-maturity securities, fair value | 13,123 | 12,476 |
Available-for-Sale Securities Pledged As Collateral (Textuals) [Abstract] | ||
Available-for-sale securities pledged to creditors with the right to sell or repledge | 17 | 1,600 |
Held-to-Maturity Securities Pledged As Collateral (Textuals) [Abstract] | ||
Held-to-maturity securities pledged to creditors with the right to sell or repledge | $ 700 | $ 3,100 |
Available-for-Sale Securities62
Available-for-Sale Securities (Details - OTTI) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | $ 7,391 | $ 406 |
Available-for-sale securities, twelve months or longer, fair value | 2,524 | 4,704 |
Available-for-sale securities, fair value | 9,915 | 5,110 |
Available-for-sale securities, less than twelve months, aggregate losses | (105) | (1) |
Available-for-sale securities, twelve months or longer, aggregate losses | (79) | (106) |
Available-for-sale securities, aggregate losses | (184) | (107) |
Agency Mortgage-Backed Securities and CMOs [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 6,832 | 403 |
Available-for-sale securities, twelve months or longer, fair value | 2,496 | 4,674 |
Available-for-sale securities, fair value | 9,328 | 5,077 |
Available-for-sale securities, less than twelve months, aggregate losses | (88) | (1) |
Available-for-sale securities, twelve months or longer, aggregate losses | (78) | (104) |
Available-for-sale securities, aggregate losses | (166) | (105) |
Agency Debentures [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 329 | 0 |
Available-for-sale securities, twelve months or longer, fair value | 9 | 9 |
Available-for-sale securities, fair value | 338 | 9 |
Available-for-sale securities, less than twelve months, aggregate losses | (12) | 0 |
Available-for-sale securities, twelve months or longer, aggregate losses | 0 | 0 |
Available-for-sale securities, aggregate losses | (12) | 0 |
U.S. Treasuries [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 143 | |
Available-for-sale securities, twelve months or longer, fair value | 0 | |
Available-for-sale securities, fair value | 143 | |
Available-for-sale securities, less than twelve months, aggregate losses | (4) | |
Available-for-sale securities, twelve months or longer, aggregate losses | 0 | |
Available-for-sale securities, aggregate losses | (4) | |
Agency Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 55 | |
Available-for-sale securities, twelve months or longer, fair value | 0 | |
Available-for-sale securities, fair value | 55 | |
Available-for-sale securities, less than twelve months, aggregate losses | 0 | |
Available-for-sale securities, twelve months or longer, aggregate losses | 0 | |
Available-for-sale securities, aggregate losses | 0 | |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 0 | 3 |
Available-for-sale securities, twelve months or longer, fair value | 15 | 16 |
Available-for-sale securities, fair value | 15 | 19 |
Available-for-sale securities, less than twelve months, aggregate losses | 0 | 0 |
Available-for-sale securities, twelve months or longer, aggregate losses | 0 | (1) |
Available-for-sale securities, aggregate losses | 0 | (1) |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, twelve months or longer, fair value | 4 | 5 |
Available-for-sale securities, fair value | 4 | 5 |
Available-for-sale securities, twelve months or longer, aggregate losses | (1) | (1) |
Available-for-sale securities, aggregate losses | (1) | $ (1) |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 32 | |
Available-for-sale securities, twelve months or longer, fair value | 0 | |
Available-for-sale securities, fair value | 32 | |
Available-for-sale securities, less than twelve months, aggregate losses | (1) | |
Available-for-sale securities, twelve months or longer, aggregate losses | 0 | |
Available-for-sale securities, aggregate losses | $ (1) |
Held-to-maturity Securities (63
Held-to-maturity Securities (Details - OTTI) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, less than twelve months, fair value | $ 3,927 | $ 155 |
Held-to-maturity securities, twelve months or longer, fair value | 1,629 | 2,849 |
Held-to-maturity securities, fair value | 5,556 | 3,004 |
Held-to-maturity securities, less than twelve months, aggregate losses | (37) | (1) |
Held-to-maturity securities, twelve months or longer, aggregate losses | (36) | (44) |
Held-to-maturity securities, aggregate losses | (73) | (45) |
Agency Mortgage-Backed Securities and CMOs [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, less than twelve months, fair value | 2,807 | 45 |
Held-to-maturity securities, twelve months or longer, fair value | 1,495 | 2,289 |
Held-to-maturity securities, fair value | 4,302 | 2,334 |
Held-to-maturity securities, less than twelve months, aggregate losses | (25) | 0 |
Held-to-maturity securities, twelve months or longer, aggregate losses | (33) | (39) |
Held-to-maturity securities, aggregate losses | (58) | (39) |
Agency Debentures [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, less than twelve months, fair value | 114 | |
Held-to-maturity securities, twelve months or longer, fair value | 0 | |
Held-to-maturity securities, fair value | 114 | |
Held-to-maturity securities, less than twelve months, aggregate losses | (2) | |
Held-to-maturity securities, twelve months or longer, aggregate losses | 0 | |
Held-to-maturity securities, aggregate losses | (2) | 0 |
Agency Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, less than twelve months, fair value | 1,006 | 110 |
Held-to-maturity securities, twelve months or longer, fair value | 134 | 560 |
Held-to-maturity securities, fair value | 1,140 | 670 |
Held-to-maturity securities, less than twelve months, aggregate losses | (10) | (1) |
Held-to-maturity securities, twelve months or longer, aggregate losses | (3) | (5) |
Held-to-maturity securities, aggregate losses | $ (13) | $ (6) |
Available-for-Sale and Held-t64
Available-for-Sale and Held-to-Maturity Securities (Details - Other) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Other-than-temporary impairment, credit losses recognized in earnings | $ 152 | $ 152 | $ 166 | |
Other-than-temporary impairment credit losses recognized In earnings securities factored to zero | 123 | 123 | 121 | |
Net impairment | 0 | 0 | 3 | |
Components of gains (losses) on loans and securities, net [Abstract] | ||||
Reclassification of deferred losses on cash flow hedges | $ (370) | (370) | 0 | 0 |
Hedge ineffectiveness | (1) | (10) | 1 | |
Gains (losses) on loans, net | 2 | 4 | (1) | |
Gains (losses) on securities and other | ||||
Gains on available-for-sale securities | 58 | 42 | 69 | |
Losses on available-for-sale securities | (20) | 0 | (8) | |
Subtotal | 38 | 42 | 61 | |
Gains (losses) on securities and other | $ (331) | 36 | $ 61 | |
Gain (loss) on sale of mortgage loans | 7 | |||
Available-for-sale securities, gross realized gain (loss) | $ 6 |
Loans Receivable, Net (Details)
Loans Receivable, Net (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loans Receivable, Net [Abstract] | ||||
One- to four-family | $ 2,488 | $ 3,060 | ||
Home equity | 2,114 | 2,834 | ||
Consumer and other | 341 | 455 | ||
Total loans receivable | 4,943 | 6,349 | ||
Unamortized premiums, net | 23 | 34 | ||
Allowance for loan losses | (353) | (404) | $ (453) | $ (481) |
Total loans receivable, net | 4,613 | 5,979 | ||
Loans Pledged Federal Home Loan Bank | 4,200 | 5,400 | ||
Loans Pledged Federal Reserve Bank | 300 | 500 | ||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Loans collectively evaluated for impairment, recorded investment | 4,478 | 5,850 | ||
Loans individually evaluated for impairment, recorded investment | 488 | 533 | ||
Total recorded investment in loans receivable | 4,966 | 6,383 | ||
Loans collectively evaluated for impairment, allowance for loan losses | 292 | 338 | ||
Loans individually evaluated for impairment, allowance for loan losses | 61 | 66 | ||
Allowance for loan losses | 353 | 404 | 453 | 481 |
One- To Four-Family [Member] | ||||
Loans Receivable, Net [Abstract] | ||||
Allowance for loan losses | (40) | (27) | (102) | (184) |
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Loans collectively evaluated for impairment, recorded investment | 2,219 | 2,764 | ||
Loans individually evaluated for impairment, recorded investment | 286 | 316 | ||
Loans collectively evaluated for impairment, allowance for loan losses | 31 | 18 | ||
Loans individually evaluated for impairment, allowance for loan losses | 9 | 9 | ||
Allowance for loan losses | 40 | 27 | 102 | 184 |
Home Equity [Member] | ||||
Loans Receivable, Net [Abstract] | ||||
Allowance for loan losses | (307) | (367) | (326) | (257) |
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Loans collectively evaluated for impairment, recorded investment | 1,915 | 2,625 | ||
Loans individually evaluated for impairment, recorded investment | 202 | 217 | ||
Loans collectively evaluated for impairment, allowance for loan losses | 255 | 310 | ||
Loans individually evaluated for impairment, allowance for loan losses | 52 | 57 | ||
Allowance for loan losses | 307 | 367 | 326 | 257 |
Consumer And Other [Member] | ||||
Loans Receivable, Net [Abstract] | ||||
Allowance for loan losses | (6) | (10) | (25) | (40) |
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Loans collectively evaluated for impairment, recorded investment | 344 | 461 | ||
Loans collectively evaluated for impairment, allowance for loan losses | 6 | 10 | ||
Allowance for loan losses | $ 6 | $ 10 | $ 25 | $ 40 |
Loans Receivable, Net (Details
Loans Receivable, Net (Details - Aging) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans receivable, Current | $ 4,591 | $ 5,962 |
One- to four-family | 2,488 | 3,060 |
Home equity | 2,114 | 2,834 |
Consumer and other | 341 | 455 |
Total loans receivable | $ 4,943 | 6,349 |
Threshold, Period Past Due, Nonaccrual Financing Receivable | 90 days | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | ||
Real Estate Acquired Through Foreclosure | $ 27 | 36 |
Mortgage Loans in Process of Foreclosure, Amount | 108 | 107 |
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 418 | 460 |
Financing Receivables, 30 To 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 130 | 155 |
Financing Receivables, 90 To 179 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 58 | 58 |
Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 164 | 174 |
One- To Four-Family [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans receivable, Current | 2,279 | 2,813 |
One- To Four-Family [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 263 | 294 |
One- To Four-Family [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 72 | 88 |
One- To Four-Family [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 26 | 28 |
One- To Four-Family [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 111 | 131 |
Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans receivable, Current | 1,978 | 2,702 |
Home Equity [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 154 | 165 |
Home Equity [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 52 | 60 |
Home Equity [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 31 | 29 |
Home Equity [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 53 | 43 |
Consumer And Other [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans receivable, Current | 334 | 447 |
Consumer And Other [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 1 | 1 |
Consumer And Other [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 6 | 7 |
Consumer And Other [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 1 | 1 |
Consumer And Other [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 0 |
Loans Receivable, Net (Detail67
Loans Receivable, Net (Details - Credit Quality) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 37.00% | 38.00% |
One- To Four-Family [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 2,488,000,000 | $ 3,060,000,000 |
Average estimated current LTV/CLTV | 77.00% | 79.00% |
Average LTV/CLTV at loan origination | 71.00% | 71.00% |
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 | 39.00% | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest only, Already Amortizing | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 61.00% | |
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 | 17.00% | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2017 | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 22.00% | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2018 and after | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 0.00% | |
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 | 33.33333% | |
One- To Four-Family [Member] | FICO Score, Greater than 720 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 1,423,000,000 | $ 1,734,000,000 |
One- To Four-Family [Member] | FICO Score, 719 to 700 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 246,000,000 | 296,000,000 |
One- To Four-Family [Member] | FICO Score, 699 to 680 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 198,000,000 | 260,000,000 |
One- To Four-Family [Member] | FICO Score, 679 to 660 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 150,000,000 | 197,000,000 |
One- To Four-Family [Member] | FICO Score, 659 to 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 198,000,000 | 237,000,000 |
One- To Four-Family [Member] | FICO Score, Less than 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 273,000,000 | 336,000,000 |
One- To Four-Family [Member] | Current FICO Score Not Available [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 39,000,000 | 49,000,000 |
One- To Four-Family [Member] | LTV Less than 80 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 1,519,000,000 | 1,757,000,000 |
One- To Four-Family [Member] | LTV 80 to 100 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 609,000,000 | 807,000,000 |
One- To Four-Family [Member] | LTV 100 to 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 227,000,000 | 311,000,000 |
One- To Four-Family [Member] | LTV Greater than 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 133,000,000 | 185,000,000 |
Home Equity [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 2,114,000,000 | $ 2,834,000,000 |
Average estimated current LTV/CLTV | 90.00% | 92.00% |
Average LTV/CLTV at loan origination | 81.00% | 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 | 61.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Interest only, Already Amortizing | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 39.00% | |
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 | 45.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2017 | ||
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, 2018 and after | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 1.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Balloon Loan, Percentage [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 4.00% | |
Home Equity [Member] | Home Equity Benchmark [Member] | Financing Receivables in First Lien Position, Percentage [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 13.00% | |
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 | 18.00% | |
Home Equity [Member] | Home Equity Benchmark [Member] | Home Equity Line of Credit, Percentage [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 82.00% | |
Home Equity [Member] | FICO Score, Greater than 720 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 1,069,000,000 | $ 1,487,000,000 |
Home Equity [Member] | FICO Score, 719 to 700 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 222,000,000 | 292,000,000 |
Home Equity [Member] | FICO Score, 699 to 680 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 183,000,000 | 238,000,000 |
Home Equity [Member] | FICO Score, 679 to 660 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 152,000,000 | 203,000,000 |
Home Equity [Member] | FICO Score, 659 to 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 203,000,000 | 258,000,000 |
Home Equity [Member] | FICO Score, Less than 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 285,000,000 | 356,000,000 |
Home Equity [Member] | Current FICO Score Not Available [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 3,000,000 | 4,000,000 |
Home Equity [Member] | LTV Less than 80 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 843,000,000 | 1,081,000,000 |
Home Equity [Member] | LTV 80 to 100 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 549,000,000 | 755,000,000 |
Home Equity [Member] | LTV 100 to 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 420,000,000 | 557,000,000 |
Home Equity [Member] | LTV Greater than 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 302,000,000 | $ 441,000,000 |
Loans Receivable, Net (Detail68
Loans Receivable, Net (Details - Allowance) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivables, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses, beginning of period | $ 404 | $ 453 | $ 481 |
Provision (benefit) for loan losses | (40) | 36 | 143 |
Charge-offs | (44) | (126) | (231) |
Recoveries | 33 | 41 | 60 |
Charge-offs, net | (11) | (85) | (171) |
Allowance for loan losses, end of period | 353 | $ 404 | 453 |
Increase (Decrease) in Finance Receivables | $ 1,400 | ||
Financing Receivable, Allowance for Credit Losses, Percentage of Gross Loans Receivable | 7.00% | 6.00% | |
Repurchase Settlements | $ 2 | $ 11 | |
One- To Four-Family [Member] | |||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses, beginning of period | 27 | 102 | 184 |
Provision (benefit) for loan losses | 15 | (42) | (55) |
Charge-offs | (2) | (44) | (41) |
Recoveries | 0 | 11 | 14 |
Charge-offs, net | (2) | (33) | (27) |
Allowance for loan losses, end of period | 40 | 27 | 102 |
Home Equity [Member] | |||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses, beginning of period | 367 | 326 | 257 |
Provision (benefit) for loan losses | (55) | 82 | 192 |
Charge-offs | (31) | (65) | (157) |
Recoveries | 26 | 24 | 34 |
Charge-offs, net | (5) | (41) | (123) |
Allowance for loan losses, end of period | 307 | 367 | 326 |
Consumer And Other [Member] | |||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses, beginning of period | 10 | 25 | 40 |
Provision (benefit) for loan losses | 0 | (4) | 6 |
Charge-offs | (11) | (17) | (33) |
Recoveries | 7 | 6 | 12 |
Charge-offs, net | (4) | (11) | (21) |
Allowance for loan losses, end of period | $ 6 | $ 10 | $ 25 |
Loans Receivable, Net (Detail69
Loans Receivable, Net (Details - TDRs Accrual and Nonaccrual) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | $ 488 | $ 533 |
Financing Receivable, Troubled Debt Restructurings, Modifications, Total1 | 334 | 354 |
Financing Receivable, Troubled Debt Restructurings, Bankruptcy Notifications | 154 | 179 |
Performing Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Accrual TDRs | 226 | 248 |
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual TDRs, Current | 148 | 162 |
Nonaccrual TDRs, 30-89 Days Delinquent | 30 | 38 |
Nonaccrual TDRs, 90-179 Days Delinquent | 16 | 18 |
Nonaccrual TDRs, 180 Plus Days Delinquent | 68 | 67 |
One- To Four-Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 286 | 316 |
TDR unpaid principal balance | 283 | 314 |
One- To Four-Family [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Accrual TDRs | 106 | 121 |
One- To Four-Family [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual TDRs, Current | 106 | 111 |
Nonaccrual TDRs, 30-89 Days Delinquent | 19 | 24 |
Nonaccrual TDRs, 90-179 Days Delinquent | 8 | 12 |
Nonaccrual TDRs, 180 Plus Days Delinquent | 47 | 48 |
Home Equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 202 | 217 |
Home Equity [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Accrual TDRs | 120 | 127 |
Home Equity [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual TDRs, Current | 42 | 51 |
Nonaccrual TDRs, 30-89 Days Delinquent | 11 | 14 |
Nonaccrual TDRs, 90-179 Days Delinquent | 8 | 6 |
Nonaccrual TDRs, 180 Plus Days Delinquent | $ 21 | $ 19 |
Loans Receivable, Net (Detail70
Loans Receivable, Net (Details - TDRs Average Investment and Income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Impaired [Line Items] | |||
TDRs, Average Recorded Investment | $ 516 | $ 803 | $ 1,467 |
TDRs, Interest Income Recognized | 26 | 34 | 53 |
Proceeds from sale of loans | 40 | 813 | 0 |
One- To Four-Family [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
TDRs, Average Recorded Investment | 303 | 576 | 1,205 |
TDRs, Interest Income Recognized | 9 | 16 | 33 |
Proceeds from sale of loans | 800 | ||
Home Equity [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
TDRs, Average Recorded Investment | 213 | 227 | 262 |
TDRs, Interest Income Recognized | $ 17 | $ 18 | $ 20 |
Loans Receivable, Net (Detail71
Loans Receivable, Net (Details - TDRs Specific Valuation Allowance) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Recorded Investment in TDRs | $ 488 | $ 533 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 61 | 66 |
One- To Four-Family [Member] | ||
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 72 | 88 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 214 | 228 |
Recorded Investment in TDRs | 286 | 316 |
Impaired Financing Receivable, Related Allowance | 9 | 9 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 63 | 79 |
Impaired Financing Receivable, with No Related Allowance, Net Investment | 214 | 228 |
Impaired Financing Receivables, Net Investment, Total | 277 | 307 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 9 | 9 |
Home Equity [Member] | ||
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 111 | 118 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 91 | 99 |
Recorded Investment in TDRs | 202 | 217 |
Impaired Financing Receivable, Related Allowance | 52 | 57 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 59 | 61 |
Impaired Financing Receivable, with No Related Allowance, Net Investment | 91 | 99 |
Impaired Financing Receivables, Net Investment, Total | 150 | 160 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 52 | $ 57 |
Loans Receivable, Net (Detail72
Loans Receivable, Net (Details - Modifications Types and Financial Impact) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | Dec. 31, 2013USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | loan | 401 | 259 | 577 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 37 | $ 35 | $ 145 |
Less than [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financial Impact, Troubled Debt Restructurings - Modifications, Principal Forgiven | 1 | 1 | |
Principal Forgiveness with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 1 | 19 |
Principal Deferral with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1 | 0 | 5 |
Re-Age Extension or Interest Capitalization with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 12 | 15 | 78 |
Other with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 2 | 4 | 18 |
Other without Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 22 | $ 15 | $ 25 |
One- To Four-Family [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | loan | 34 | 64 | 324 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 13 | $ 20 | $ 124 |
Financial Impact, Troubled Debt Restructurings - Modifications, Principal Forgiven | $ 7 | ||
Financial Impact, Troubled Debt Restructurings - Modifications, Pre-Modification Weighted Average Interest Rate | 5.20% | ||
Financial Impact, Troubled Debt Restructurings - Modifications, Post-Modification Weighted Average Interest Rate | 2.30% | ||
One- To Four-Family [Member] | Principal Forgiveness with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 1 | $ 19 |
One- To Four-Family [Member] | Principal Deferral with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1 | 0 | 5 |
One- To Four-Family [Member] | Re-Age Extension or Interest Capitalization with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 9 | 11 | 71 |
One- To Four-Family [Member] | Other with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 2 | 11 |
One- To Four-Family [Member] | Other without Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 3 | $ 6 | $ 18 |
Home Equity [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | loan | 367 | 195 | 253 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 24 | $ 15 | $ 21 |
Home Equity [Member] | Principal Forgiveness with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 0 | 0 |
Home Equity [Member] | Principal Deferral with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 0 | 0 |
Home Equity [Member] | Re-Age Extension or Interest Capitalization with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 3 | 4 | 7 |
Home Equity [Member] | Other with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 2 | 2 | 7 |
Home Equity [Member] | Other without Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 19 | $ 9 | $ 7 |
Loans Receivable, Net (Detail73
Loans Receivable, Net (Details - Modifications Subsequent Defaults) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | Dec. 31, 2013USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | loan | 97 | 82 | 211 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | $ 8 | $ 12 | $ 56 |
One- To Four-Family [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | loan | 7 | 27 | 142 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | $ 3 | $ 9 | $ 53 |
Troubled Debt Restructurings - Modifications that Subsequently Defaulted that were Classified as Current at Period End | $ 1 | $ 18 | |
One- To Four-Family [Member] | Less than [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings - Modifications that Subsequently Defaulted that were Classified as Current at Period End | $ 1 | ||
Home Equity [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | loan | 90 | 55 | 69 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | $ 5 | $ 3 | $ 3 |
Troubled Debt Restructurings - Modifications that Subsequently Defaulted that were Classified as Current at Period End | $ 3 | $ 1 | $ 1 |
Accounting for Derivative Ins74
Accounting for Derivative Instruments and Hedging Activities (Details - Fair Value of Derivatives) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 2,204 | $ 3,069 |
Derivative Asset | 10 | 24 |
Derivative Liability | (55) | (66) |
Derivative Asset (Liability), Net | (45) | (42) |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 0 | 2,000 |
Derivative Asset | 0 | 23 |
Derivative Liability | 0 | (24) |
Derivative Asset (Liability), Net | 0 | (1) |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,204 | 1,069 |
Derivative Asset | 10 | 1 |
Derivative Liability | (55) | (42) |
Derivative Asset (Liability), Net | $ (45) | $ (41) |
Accounting for Derivative Ins75
Accounting for Derivative Instruments and Hedging Activities (Details - Cash Flow Hedge) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | |||||
Termination of legacy wholesale funding obligations | $ 4,400 | $ 4,400 | |||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | $ 370 | 370 | $ 0 | $ 0 | |
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 | [1] | (10) | (39) | 67 | |
Cash Flow Hedging [Member] | |||||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | |||||
Accumulated Other Comprehensive Loss, before Tax | 422 | ||||
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 | (10) | (39) | 67 | ||
Losses reclassified from AOCI into earnings (effective portion), net of tax(1) | (271) | (76) | (87) | ||
Cash flow hedge ineffectiveness gains(2) | $ 0 | $ 0 | $ 1 | ||
[1] | Amounts are net of benefit from income taxes of $7 million and $29 million for the years ended December 31, 2015 and 2014, respectively, and net of provision for income taxes of $33 million for the year ended December, 2013. |
Accounting for Derivative Ins76
Accounting for Derivative Instruments and Hedging Activities (Details - Fair Value Hedge) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair Value Hedge, Hedging Instrument | $ (7) | $ (133) | $ 107 |
Fair Value Hedge, Hedged Item | 6 | 123 | (107) |
Fair Value Hedge, Hedge Ineffectiveness | (1) | (10) | 0 |
Derivatives Textuals [Abstract] | |||
Collateral Already Posted, Aggregate Fair Value | 130 | ||
Derivative, Net Liability Position, Aggregate Fair Value | 45 | ||
Excess Collateral Derivatives In Net Liability Position | 85 | ||
Agency Debentures [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair Value Hedge, Hedging Instrument | (3) | (100) | 73 |
Fair Value Hedge, Hedged Item | 3 | 91 | (72) |
Fair Value Hedge, Hedge Ineffectiveness | 0 | (9) | 1 |
Agency mortgage-backed securities [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair Value Hedge, Hedging Instrument | (4) | (33) | 34 |
Fair Value Hedge, Hedged Item | 3 | 32 | (35) |
Fair Value Hedge, Hedge Ineffectiveness | $ (1) | $ (1) | $ (1) |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Gross Amount | $ 847 | $ 843 | |
Accumulated Depreciation and Amortization | (611) | (598) | |
Net Amount | 236 | 245 | |
Depreciation and amortization excluding intangible amortization | 81 | 78 | $ 89 |
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 | 19 | ||
Minimum Lease Payments, Sale Leaseback Transactions | 42 | ||
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 | (6) | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions | (21) | ||
Software and Software Development Costs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 490 | 487 | |
Accumulated Depreciation and Amortization | (388) | (391) | |
Net Amount | 102 | 96 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 116 | 114 | |
Accumulated Depreciation and Amortization | (91) | (84) | |
Net Amount | 25 | 30 | |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 127 | 102 | |
Accumulated Depreciation and Amortization | (84) | (76) | |
Net Amount | 43 | 26 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 72 | 72 | |
Accumulated Depreciation and Amortization | (28) | (26) | |
Net Amount | 44 | 46 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 22 | 23 | |
Accumulated Depreciation and Amortization | (20) | (21) | |
Net Amount | 2 | 2 | |
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 | 17 | 42 | |
Accumulated Depreciation and Amortization | 0 | 0 | |
Net Amount | 17 | 42 | |
Capitalized internally developed software, balance | 22 | 19 | |
Software Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized internally developed software costs | 42 | 27 | 24 |
Depreciation and amortization excluding intangible amortization | $ 41 | $ 47 | $ 57 |
Goodwill and Other Intangible78
Goodwill and Other Intangibles, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Line Items] | |||
Goodwill acquired during period | $ 0 | $ 0 | |
Impairment of goodwill | 0 | 0 | $ 142 |
Goodwill | 1,792 | 1,792 | |
Balance Sheet Management | |||
Goodwill [Line Items] | |||
Goodwill, Impaired, Accumulated Impairment Loss | 101 | ||
Trading And Investing | |||
Goodwill [Line Items] | |||
Goodwill, Impaired, Accumulated Impairment Loss | 142 | ||
Trading And Investing | Market Making Reporting Unit | |||
Goodwill [Line Items] | |||
Impairment of goodwill | 142 | ||
Trading And Investing | Retail Brokerage Reporting Unit [Member] | |||
Goodwill [Line Items] | |||
Impairment of goodwill | 0 | 0 | $ 0 |
Goodwill | 1,800 | ||
Customer Lists | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 435 | 435 | |
Accumulated Amortization | (261) | (241) | |
Finite-Lived Intangible Assets, Net | $ 174 | $ 194 | |
Customer Lists | Weighted Average [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Original Useful Life | 20 years | 20 years | |
Weighted Average Remaining Useful Life | 10 years | 11 years |
Receivables from and Payables79
Receivables from and Payables to Brokers, Dealers and Clearing Organizations Receivables from and Payables to Brokers, Dealers and Clearing Organizations (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables from Brokers-Dealers and Clearing Organizations [Abstract] | ||
Securities Borrowed | $ 120 | $ 474 |
Receivables from Clearing Organizations | 341 | 313 |
Other | 59 | 97 |
Receivables from brokers, dealers and clearing organizations | 520 | 884 |
Payables to Broker-Dealers and Clearing Organizations [Abstract] | ||
Securities Loaned | 1,535 | 1,649 |
Payables to Clearing Organizations | 8 | 9 |
Other | 33 | 41 |
Payables to brokers, dealers and clearing organizations | $ 1,576 | $ 1,699 |
Goodwill and Other Intangible80
Goodwill and Other Intangibles, Net (Details - Future Amortization of Other Intangible, Net) - Customer Lists - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | $ 20 | |
2,017 | 19 | |
2,018 | 19 | |
2,019 | 18 | |
2,020 | 18 | |
Thereafter | 80 | |
Finite-Lived Intangible Assets, Net | $ 174 | $ 194 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits By Type [Abstract] | ||
Sweep deposits | $ 24,018 | $ 19,119 |
Complete savings deposits | 3,357 | 3,753 |
Checking deposits | 1,239 | 1,137 |
Other money market and savings deposits | 792 | 833 |
Time deposits | 39 | 48 |
Total deposits | $ 29,445 | $ 24,890 |
Deposits, Weighted Average Rates [Abstract] | ||
Sweep deposits, weighted-average rate | 0.01% | 0.03% |
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 | 0.38% | 0.50% |
Total deposits, weighted-average rate | 0.01% | 0.03% |
Deposits Textuals [Abstract] | ||
Noninterest-bearing Deposit Liabilities, Domestic | $ 173 | $ 141 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2,016 | 28 | |
2,017 | 5 | |
2,018 | 3 | |
2,019 | 1 | |
2,020 | 2 | |
Thereafter | 0 | |
Subtotal | 39 | |
Unamortized discount, net | 0 | |
Total time deposits | $ 39 | $ 48 |
Deposits (Details - Time Deposi
Deposits (Details - Time Deposits over $100,000) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Deposits [Abstract] | ||
Contractual Maturities of Time Deposits, $100,000 or More, Description | 100,000 | |
Contractual Maturities of Time Deposits, $250,000 or More, Description | 250,000 | |
Contractual Maturities, Time Deposits, $100,000 or More [Abstract] | ||
Three months or less | $ 0 | $ 1 |
Three through six months | 1 | 1 |
Six through twelve months | 2 | 2 |
Over twelve months | 1 | 2 |
Total certificates of deposit | 4 | 6 |
Contractual Maturities Time Deposits 250000 Or More [Abstract] | ||
Over twelve months | 1 | 1 |
Total certificates of deposit | $ 1 | $ 1 |
Other Borrowings (Details)
Other Borrowings (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt, Balance, Maturity and Termination [Line Items] | |||||
Other borrowings | $ 491 | $ 4,971 | |||
Termination of legacy wholesale funding obligations | $ 4,400 | 4,400 | |||
Gains (Losses) on early extinguishment of debt | (39) | $ (73) | (112) | (71) | $ 0 |
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | $ 370 | 370 | 0 | $ 0 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | |||||
Debt, Balance, Maturity and Termination [Line Items] | |||||
Other borrowings | $ 409 | 428 | |||
Debt instrument maturity year | 2,031 | ||||
Gains (Losses) on early extinguishment of debt | $ 4 | ||||
Extinguishment of debt, amount | 19 | ||||
Repurchase Agreements [Member] | |||||
Debt, Balance, Maturity and Termination [Line Items] | |||||
Other borrowings | 82 | 3,672 | |||
Securities Sold Under Agreements To Repurchase Maximum Month end Outstanding Amount | 3,800 | 4,900 | |||
Federal Home Loan Bank Advances [Member] | |||||
Debt, Balance, Maturity and Termination [Line Items] | |||||
Other borrowings | 0 | 920 | |||
Fair Value Hedge Adjustments And Deferred Costs [Member] | |||||
Debt, Balance, Maturity and Termination [Line Items] | |||||
Other borrowings | 0 | (49) | |||
Total Securities Sold Under Agreements To Repurchase And FHLB Advances [Member] | |||||
Debt, Balance, Maturity and Termination [Line Items] | |||||
Other borrowings | 82 | 4,543 | |||
Termination of legacy wholesale funding obligations | 4,400 | ||||
Loss on termination of wholesale funding obligations, pretax | 413 | ||||
Gains (Losses) on early extinguishment of debt | (43) | ||||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 370 | ||||
Total Securities Sold Under Agreements to Repurchase and FHLB Advances and Trust Preferred Securities [Member] | |||||
Debt, Balance, Maturity and Termination [Line Items] | |||||
Other borrowings | $ 491 | $ 4,971 |
Other Borrowings (Details - Tru
Other Borrowings (Details - Trusts) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
ETBH Capital Trust II [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | $ 0 |
Maturity Date | 2,031 |
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 | 2,031 |
Annual Interest Rate | 3.75% above 6-month LIBOR |
Debt Instrument, Basis Spread on Variable Rate | 3.75% |
ETBH Capital Trusts V, VI,VIII [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | $ 51 |
Maturity Date | 2,032 |
Annual Interest Rate | 3.25%-3.65% above 3-month LIBOR |
ETBH Capital Trusts V, VI,VIII [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 3.65% |
ETBH Capital Trusts V, VI,VIII [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 3.25% |
ETBH Capital Trusts VII, IX-XII [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | $ 65 |
Maturity Date | 2,033 |
Annual Interest Rate | 3.00%-3.30% above 3-month LIBOR |
ETBH Capital Trusts VII, IX-XII [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 3.30% |
ETBH Capital Trusts VII, IX-XII [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 3.00% |
ETBH Capital Trusts XIII-XVII, XX [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | $ 77 |
Maturity Date | 2,034 |
Annual Interest Rate | 2.45%-2.90% above 3-month LIBOR |
ETBH Capital Trusts XIII-XVII, XX [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.90% |
ETBH Capital Trusts XIII-XVII, XX [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.45% |
ETBH Capital Trusts XIX, XXI, XXII [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | $ 60 |
Maturity Date | 2,035 |
Annual Interest Rate | 2.20%-2.40% above 3-month LIBOR |
ETBH Capital Trusts XIX, XXI, XXII [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.40% |
ETBH Capital Trusts XIX, XXI, XXII [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.20% |
ETBH Capital Trusts XXIII-XXIV [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | $ 45 |
Maturity Date | 2,036 |
Annual Interest Rate | 2.10% above 3-month LIBOR |
Debt Instrument, Basis Spread on Variable Rate | 2.10% |
ETBH Capital Trusts XXV-XXX [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | $ 96 |
Maturity Date | 2,037 |
Annual Interest Rate | 1.90%-2.00% above 3-month LIBOR |
ETBH Capital Trusts XXV-XXX [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
ETBH Capital Trusts XXV-XXX [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.90% |
ETBH Capital Trust Total [Member] | |
Debt Instrument [Line Items] | |
Face Value (in dollars) | $ 414 |
Other Borrowings (Details - Tex
Other Borrowings (Details - Textuals) | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / CapitalSecurity | Dec. 31, 2014USD ($) | |
E TRADE Clearing [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 995,000,000 | |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | ||
Debt Instrument [Line Items] | ||
Trust Preferred Securities, Years Due After Issuance | 30 years | |
Trust Preferred Securities, Par Value | $ / CapitalSecurity | 1,000 | |
Secured Committed Line of Credit [Member] | E TRADE Clearing [Member] | ||
Line of Credit Facility [Line Items] | ||
Lines of Credit. Number of Creditors | 2 | |
Secured Committed Line of Credit [Member] | E TRADE Clearing [Member] | Line of Credit, Maturing June 2016 [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | |
Secured Uncommitted Line of Credit [Member] | E TRADE Clearing [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 375,000,000 | |
Unsecured Uncommitted Line of Credit Member [Member] | E TRADE Clearing [Member] | ||
Line of Credit Facility [Line Items] | ||
Lines of Credit. Number of Creditors | 2 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | |
Unsecured Uncommitted Line of Credit Member [Member] | E TRADE Clearing [Member] | Line of Credit, Maturing August 2016 [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 75,000,000 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000,000 | $ 200,000,000 |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | |
Revolving Credit Facility [Member] | E TRADE Clearing [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 345,000,000 |
Corporate Debt (Details)
Corporate Debt (Details) shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Nov. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($) | Dec. 31, 2009USD ($) | |
Debt Disclosure (Textuals) [Abstract] | ||||||||
Losses on early extinguishment of debt | $ 39,000,000 | $ 73,000,000 | $ 112,000,000 | $ 71,000,000 | $ 0 | |||
Debt Conversion, Original Debt, Amount | $ 1,700,000,000 | |||||||
Conversion of convertible debentures | $ 30,000,000 | $ 5,000,000 | $ 0 | |||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 2.9 | 0.5 | ||||||
Corporate Debt Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face Value | $ 1,378,000,000 | $ 1,008,000,000 | $ 1,378,000,000 | |||||
Unamortized discount | (12,000,000) | (11,000,000) | (12,000,000) | |||||
Total corporate debt | 1,366,000,000 | 997,000,000 | 1,366,000,000 | |||||
Corporate Debt By Maturity [Abstract] | ||||||||
2,016 | 0 | |||||||
2,017 | 0 | |||||||
2,018 | 0 | |||||||
2,019 | 8,000,000 | |||||||
2,020 | 0 | |||||||
Thereafter | 1,000,000,000 | |||||||
Face Value | 1,378,000,000 | 1,008,000,000 | 1,378,000,000 | |||||
Unamortized discount | (12,000,000) | (11,000,000) | (12,000,000) | |||||
Total corporate debt | 1,366,000,000 | 997,000,000 | 1,366,000,000 | |||||
Interest Bearing Total [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face Value | 1,340,000,000 | 1,000,000,000 | 1,340,000,000 | |||||
Unamortized discount | (12,000,000) | (11,000,000) | (12,000,000) | |||||
Total corporate debt | 1,328,000,000 | 989,000,000 | 1,328,000,000 | |||||
Corporate Debt By Maturity [Abstract] | ||||||||
Face Value | 1,340,000,000 | 1,000,000,000 | 1,340,000,000 | |||||
Unamortized discount | (12,000,000) | (11,000,000) | (12,000,000) | |||||
Total corporate debt | 1,328,000,000 | $ 989,000,000 | $ 1,328,000,000 | |||||
Senior Notes Interest Bearing Five and Three Eighths Percent [Member] | ||||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument maturity year | 2,022 | 2,022 | ||||||
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 | $ 540,000,000 | ||||
Unamortized discount | (7,000,000) | (6,000,000) | (7,000,000) | |||||
Total corporate debt | $ 533,000,000 | $ 534,000,000 | $ 533,000,000 | |||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 5.375% | 5.375% | 5.375% | |||||
Corporate Debt By Maturity [Abstract] | ||||||||
Face Value | 540,000,000 | $ 540,000,000 | $ 540,000,000 | $ 540,000,000 | ||||
Unamortized discount | (7,000,000) | (6,000,000) | (7,000,000) | |||||
Total corporate debt | 533,000,000 | $ 534,000,000 | $ 533,000,000 | |||||
Senior Notes Interest Bearing Four And Five Eighths Percent [Member] | ||||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument maturity year | 2,023 | |||||||
Senior Notes Interest Bearing Four And Five Eighths Percent [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face Value | 460,000,000 | $ 460,000,000 | ||||||
Unamortized discount | (5,000,000) | |||||||
Total corporate debt | $ 455,000,000 | |||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 4.625% | |||||||
Corporate Debt By Maturity [Abstract] | ||||||||
Face Value | 460,000,000 | $ 460,000,000 | ||||||
Unamortized discount | (5,000,000) | |||||||
Total corporate debt | $ 455,000,000 | |||||||
Senior Notes Interest Bearing Six And Three Eighths Percent [Member] | ||||||||
Debt Disclosure (Textuals) [Abstract] | ||||||||
Repayments of Long-Term Debt and Associated Premiums, Interest and Fees | 432,000,000 | |||||||
Losses on early extinguishment of debt | 73,000,000 | |||||||
Debt Instrument, Redemption Premium | 68,000,000 | |||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument maturity year | 2,019 | |||||||
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 | ||||||
Unamortized discount | (5,000,000) | (5,000,000) | ||||||
Total corporate debt | $ 795,000,000 | $ 795,000,000 | ||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 6.375% | 6.375% | ||||||
Corporate Debt By Maturity [Abstract] | ||||||||
Face Value | $ 800,000,000 | $ 800,000,000 | ||||||
Unamortized discount | (5,000,000) | (5,000,000) | ||||||
Total corporate debt | 795,000,000 | 795,000,000 | ||||||
Senior Notes Interest Bearing Six And Three Fourths Percent and Six Percent [Member] | ||||||||
Debt Disclosure (Textuals) [Abstract] | ||||||||
Repayments of Long-Term Debt and Associated Premiums, Interest and Fees | 460,000,000 | |||||||
Losses on early extinguishment of debt | $ 59,000,000 | $ 59,000,000 | ||||||
Debt Instrument, Redemption Premium | $ 54,000,000 | |||||||
Senior Notes Interest Bearing Six And Three Fourths Percent [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 6.75% | 6.75% | ||||||
Senior Notes Interest Bearing Six Percent [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 6.00% | 6.00% | ||||||
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% | |||||||
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 | 1.25% | |||||||
Noninterest Bearing Convertible Debentures [Member] | ||||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument maturity year | 2,019 | 2,019 | ||||||
Noninterest Bearing Convertible Debentures [Member] | Corporate Debt Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face Value | $ 38,000,000 | $ 8,000,000 | $ 38,000,000 | |||||
Unamortized discount | 0 | 0 | 0 | |||||
Total corporate debt | $ 38,000,000 | $ 8,000,000 | $ 38,000,000 | |||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 0.00% | 0.00% | 0.00% | |||||
Corporate Debt By Maturity [Abstract] | ||||||||
Face Value | $ 38,000,000 | $ 8,000,000 | $ 38,000,000 | |||||
Unamortized discount | 0 | 0 | 0 | |||||
Total corporate debt | 38,000,000 | $ 8,000,000 | 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 | |||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 167.5 | |||||||
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 | |||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 0.1 | |||||||
Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 | $ 250,000,000 | $ 200,000,000 | |||||
Line of Credit Facility, Increase (Decrease), Net | $ 50,000,000 | |||||||
Line of Credit Facility, Unrestricted Cash Minimum | 100,000,000 | |||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ (5) | $ 0 | $ 0 |
State | (5) | 4 | 3 |
Foreign | 5 | 0 | 0 |
Total current | (5) | 4 | 3 |
Deferred: | |||
Federal | (145) | 152 | 127 |
State | (31) | 3 | (20) |
Foreign | 0 | 0 | 0 |
Total deferred | (176) | 155 | 107 |
Non-current tax expense (benefit) | 4 | 0 | (1) |
Income tax expense (benefit) | (177) | 159 | 109 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Domestic | 84 | 438 | 186 |
Foreign | 7 | 14 | 9 |
Income before income tax expense (benefit) | $ 91 | $ 452 | $ 195 |
Income Taxes (Details - Unrecog
Income Taxes (Details - Unrecognized Tax Benefits) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized tax benefits, beginning of period | $ 330 | $ 333 | $ 492 | |
Additions based on tax positions related to prior years | 5 | 12 | 10 | |
Additions based on tax positions related to current year | 2 | 0 | 0 | |
Reductions based on tax positions related to prior years | (304) | (14) | (163) | |
Settlements with taxing authorities | (3) | 0 | (5) | |
Statute of limitations lapses | (1) | (1) | (1) | |
Unrecognized tax benefits, end of period | 29 | 330 | 333 | |
Unrecognized tax benefits, period increase (decrease) | (301) | |||
Unrecognized Tax Benefits (Textuals) [Abstract] | ||||
Unrecognized tax benefits that would favorably impact the tax rate | 18 | |||
Debt Conversion, Original Debt, Amount | $ 1,700 | |||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, upper bound | 4 | |||
Income tax examination, penalties and interest accrued | 13 | 21 | ||
Income tax examination penalties and interest accrued period increase decrease | (8) | $ 1 | $ 5 | |
Tax Years 2007, 2009 and 2010 [Member] | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Reductions based on tax positions related to prior years | $ (303) | |||
Hong Kong [Member] | Earliest Tax Year [Member] | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Open tax years by major tax jurisdiction | 2,008 | |||
Hong Kong [Member] | Latest Tax Year [Member] | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Open tax years by major tax jurisdiction | 2,015 | |||
United Kingdom [Member] | Earliest Tax Year [Member] | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Open tax years by major tax jurisdiction | 2,013 | |||
United Kingdom [Member] | Latest Tax Year [Member] | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Open tax years by major tax jurisdiction | 2,015 | |||
United States [Member] | Earliest Tax Year [Member] | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Open tax years by major tax jurisdiction | 2,012 | |||
United States [Member] | Latest Tax Year [Member] | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Open tax years by major tax jurisdiction | 2,015 | |||
Various States [Member] | Earliest Tax Year [Member] | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Open tax years by major tax jurisdiction | 2,007 | |||
Various States [Member] | Latest Tax Year [Member] | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Open tax years by major tax jurisdiction | 2,015 |
Income Taxes (Details - Deferre
Income Taxes (Details - Deferred Taxes and Valuation Allowance) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred tax assets: | ||
Net operating losses | $ 782 | $ 632 |
Reserves and allowances, net | 482 | 601 |
Mark to market | 158 | 110 |
Deferred compensation | 44 | 43 |
Tax credits | 44 | 37 |
Basis differences in investments | 10 | 9 |
Other | 28 | 1 |
Total deferred tax assets | 1,548 | 1,433 |
Valuation allowance | (82) | (91) |
Total deferred tax assets, net of valuation allowance | 1,466 | 1,342 |
Deferred tax liabilities: | ||
Depreciation and amortization | (433) | (387) |
Other | 0 | (4) |
Total deferred tax liabilities | (433) | (391) |
Net deferred tax asset | 1,033 | 951 |
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | ||
Valuation allowance | $ (82) | (91) |
Period Trading and Investing Segment Generated Income | 12 years | |
Increase (decrease) in valuation allowance | $ (9) | |
Total deferred tax assets | 1,548 | $ 1,433 |
Foreign Country [Member] | ||
Deferred tax assets: | ||
Total deferred tax assets | 17 | |
Valuation allowance | (17) | |
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | ||
Valuation allowance | (17) | |
Operating loss carryforwards | 67 | |
Other temporary differences | 16 | |
Total deferred tax assets | 17 | |
State and Local Jurisdiction [Member] | ||
Deferred tax assets: | ||
Total deferred tax assets | 177 | |
Valuation allowance | (65) | |
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | ||
Valuation allowance | (65) | |
Operating loss carryforwards | 3,600 | |
Total deferred tax assets | $ 177 | |
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | ||
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | ||
Operating loss carryforwards, expiration dates | Jan. 1, 2016 | |
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | ||
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | ||
Operating loss carryforwards, expiration dates | Dec. 31, 2034 | |
Federal Jurisdiction [Member] | ||
Deferred tax assets: | ||
Valuation allowance | $ 0 | |
Deferred Assets And Valuation Allowance (Texutals) [Line Items] | ||
Valuation allowance | 0 | |
Operating loss carryforwards | $ 1,800 | |
Operating loss carryforwards, expiration period | 12 years |
Income Taxes (Details - Effecti
Income Taxes (Details - Effective Tax Rate) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 0.20% | 2.00% | 2.80% |
Difference between statutory rate and foreign effective tax rate | (2.40%) | (1.00%) | (1.40%) |
Tax exempt income | (0.50%) | (0.10%) | (0.30%) |
Disallowed interest expense | 6.50% | 0.60% | 0.90% |
Change in valuation allowance | 0.10% | 2.20% | 1.10% |
Tax credits | (3.80%) | (0.60%) | (1.80%) |
Estimated reserve for uncertain tax positions | 4.70% | (0.30%) | (2.60%) |
Deferred tax adjustments | 3.50% | (3.40%) | 4.50% |
Tax on undistributed earnings and profits in certain foreign subsidiaries | 3.90% | 1.10% | 2.40% |
Settled IRS Examination | (241.50%) | 0.00% | 0.00% |
Tax impact of exit of market making business | 0.00% | 0.00% | 16.40% |
Other | (0.40%) | (0.30%) | (1.10%) |
Effective tax rate | (194.70%) | 35.20% | 55.90% |
Effective Income Tax Rate Reconciliation New York City Tax Legislative Changes | (5.80%) | ||
Effective Income Tax Rate Reconciliation New York State Tax Legislative Changes | (1.80%) |
Shareholders' Equity (Details -
Shareholders' Equity (Details - Shareholders' Equity Activity) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance | $ 5,375 | $ 4,856 | $ 5,375 | $ 4,856 | $ 4,904 | ||||||
Net income | $ 89 | $ (153) | $ 292 | 40 | $ 41 | $ 86 | $ 69 | $ 97 | 268 | 293 | 86 |
Net change from available-for-sale securities | (108) | ||||||||||
Net change from cash flow hedging instruments | 261 | ||||||||||
Other | 3 | ||||||||||
Balance | 5,799 | 5,375 | 5,799 | 5,375 | $ 4,856 | ||||||
Common Stock and Additional Paid in Capital | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance | 7,353 | 7,353 | |||||||||
Net income | 0 | ||||||||||
Net change from available-for-sale securities | 0 | ||||||||||
Net change from cash flow hedging instruments | 0 | ||||||||||
Other | 6 | ||||||||||
Balance | 7,359 | 7,353 | 7,359 | 7,353 | |||||||
Accumulated Deficit and Other Comprehensive Loss | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance | $ (1,978) | (1,978) | |||||||||
Net income | 268 | ||||||||||
Net change from available-for-sale securities | (108) | ||||||||||
Net change from cash flow hedging instruments | 261 | ||||||||||
Other | (3) | ||||||||||
Balance | $ (1,560) | $ (1,978) | $ (1,560) | $ (1,978) |
Shareholders' Equity (Details92
Shareholders' Equity (Details - Accumulated Other Comprehensive Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, | $ (249) | $ (453) | $ (310) |
Other comprehensive income (loss), before reclassifications | (97) | 154 | (193) |
Amounts reclassified from accumulated other comprehensive loss | 247 | 50 | 50 |
Other comprehensive income (loss) | 150 | 204 | (143) |
Ending balance, | (99) | (249) | (453) |
Available-for-sale Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, | 7 | (160) | 137 |
Other comprehensive income (loss), before reclassifications | (84) | 193 | (260) |
Amounts reclassified from accumulated other comprehensive loss | (24) | (26) | (37) |
Other comprehensive income (loss) | (108) | 167 | (297) |
Ending balance, | (101) | 7 | (160) |
Cash Flow Hedging Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, | (261) | (298) | (452) |
Other comprehensive income (loss), before reclassifications | (10) | (39) | 67 |
Amounts reclassified from accumulated other comprehensive loss | 271 | 76 | 87 |
Other comprehensive income (loss) | 261 | 37 | 154 |
Ending balance, | 0 | (261) | (298) |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, | 5 | 5 | 5 |
Other comprehensive income (loss), before reclassifications | (3) | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive income (loss) | (3) | 0 | 0 |
Ending balance, | $ 2 | $ 5 | $ 5 |
Shareholders' Equity (Details93
Shareholders' Equity (Details - Accumulated Other Comprehensive Loss Reclassification) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gains (losses) on securities and other | $ (331) | $ 36 | $ 61 | ||||||||
Operating interest income | 1,215 | 1,279 | 1,207 | ||||||||
Operating interest expense | (129) | (205) | (238) | ||||||||
Income (loss) before income taxes | 91 | 452 | 195 | ||||||||
Income tax (expense) benefit | 177 | (159) | (109) | ||||||||
Net income | $ 89 | $ (153) | $ 292 | $ 40 | $ 41 | $ 86 | $ 69 | $ 97 | 268 | 293 | 86 |
Termination of Legacy Wholesale Funding [Line Items] | |||||||||||
Termination of legacy wholesale funding obligations | 4,400 | 4,400 | |||||||||
Gains (Losses) on early extinguishment of debt | (39) | $ (73) | (112) | (71) | 0 | ||||||
Reclassification of deferred losses on cash flow hedges | $ 370 | 370 | 0 | 0 | |||||||
Total Securities Sold Under Agreements To Repurchase And FHLB Advances [Member] | |||||||||||
Termination of Legacy Wholesale Funding [Line Items] | |||||||||||
Termination of legacy wholesale funding obligations | 4,400 | ||||||||||
Pre-tax charge related to the termination of legacy wholesale funding obligations | 413 | ||||||||||
Gains (Losses) on early extinguishment of debt | (43) | ||||||||||
Reclassification of deferred losses on cash flow hedges | 370 | ||||||||||
Available-for-sale Securities | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gains (losses) on securities and other | 39 | 42 | 60 | ||||||||
Income tax (expense) benefit | (15) | (16) | (23) | ||||||||
Net income | 24 | 26 | 37 | ||||||||
Cash Flow Hedging Instruments | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gains (losses) on securities and other | (370) | 0 | 0 | ||||||||
Operating interest income | 0 | 0 | 8 | ||||||||
Operating interest expense | (69) | (125) | (147) | ||||||||
Income (loss) before income taxes | (439) | (125) | (139) | ||||||||
Income tax (expense) benefit | 168 | 49 | 52 | ||||||||
Net income | $ (271) | $ (76) | $ (87) |
Shareholder's Equity Shareholde
Shareholder's Equity Shareholders Equity (Details - Textuals) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 19, 2015 | |
Preferred Stock | |||||
Preferred Stock, Shares Authorized | 1 | 1 | |||
Preferred Stock, Shares Issued | 0 | 0 | 0 | ||
Preferred Stock, Shares Outstanding | 0 | 0 | 0 | ||
Debt Conversion [Line Items] | |||||
Conversion of convertible debentures | $ 30 | $ 5 | $ 0 | ||
Conversion of convertible debentures, shares | 2.9 | 0.5 | |||
Share Repurchases | |||||
Repurchases of common stock | $ 50 | ||||
Common Stock | |||||
Debt Conversion [Line Items] | |||||
Conversion of convertible debentures | $ 0 | $ 0 | |||
Conversion of convertible debentures, shares | 3 | 1 | |||
Share Repurchases | |||||
Repurchases of common stock | $ 0 | ||||
Repurchases of common stock, shares | 2 | ||||
Common Stock | November 2015 Plan | |||||
Share Repurchases | |||||
Stock Repurchase Program, Authorized Amount | $ 800 | ||||
Repurchases of common stock | $ 50 | ||||
Repurchases of common stock, shares | 1.7 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 750 | $ 750 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic: | |||||||||||
Net income | $ 89 | $ (153) | $ 292 | $ 40 | $ 41 | $ 86 | $ 69 | $ 97 | $ 268 | $ 293 | $ 86 |
Basic weighted-average shares outstanding (in thousands) | 290,762 | 288,705 | 286,991 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.31 | $ (0.53) | $ 1.01 | $ 0.14 | $ 0.14 | $ 0.30 | $ 0.24 | $ 0.34 | $ 0.92 | $ 1.02 | $ 0.30 |
Diluted: | |||||||||||
Net income | $ 89 | $ (153) | $ 292 | $ 40 | $ 41 | $ 86 | $ 69 | $ 97 | $ 268 | $ 293 | $ 86 |
Basic weighted-average shares outstanding (in thousands) | 290,762 | 288,705 | 286,991 | ||||||||
Effect of dilutive securities: | |||||||||||
Weighted-average convertible debentures (in thousands) | 2,820 | 3,999 | 4,125 | ||||||||
Weighted-average options and restricted stock issued to employees (in thousands) | 1,429 | 1,399 | 1,473 | ||||||||
Diluted weighted-average shares outstanding (in thousands) | 295,011 | 294,103 | 292,589 | ||||||||
Diluted earnings per share (in dollars per share) | $ 0.30 | $ (0.53) | $ 0.99 | $ 0.14 | $ 0.14 | $ 0.29 | $ 0.24 | $ 0.33 | $ 0.91 | $ 1 | $ 0.29 |
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 | 100 | 500 | 1,700 |
Regulatory Requirements (Detail
Regulatory Requirements (Details) - USD ($) | 2 Months Ended | 12 Months Ended | ||
Feb. 24, 2016 | Dec. 31, 2015 | 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 | $ 162,000,000 | $ 171,000,000 | ||
Net Capital | 1,071,000,000 | 1,273,000,000 | ||
Excess Net Capital | 909,000,000 | 1,102,000,000 | ||
E TRADE Bank [Member] | ||||
Tier I leverage [Abstract] | ||||
Tier 1 leverage capital | $ 3,075,000,000 | $ 4,548,000,000 | ||
Tier 1 leverage capital to adjusted assets (percent) | 9.70% | 10.60% | ||
Tier 1 leverage capital required to be well capitalized | $ 1,579,000,000 | $ 2,143,000,000 | ||
Tier 1 leverage capital required to be well capitalized to adjusted assets (percent) | 5.00% | 5.00% | ||
Excess Tier 1 leverage capital to well capitalized | $ 1,496,000,000 | $ 2,405,000,000 | ||
Tier I risk based capital [Abstract] | ||||
Tier 1 risk based capital | $ 3,075,000,000 | $ 4,548,000,000 | ||
Tier 1 risk based capital to risk weighted assets (percent) | 36.50% | 25.70% | ||
Tier 1 risk based capital required to be well capitalized | $ 674,000,000 | $ 1,063,000,000 | ||
Tier 1 risk based capital required to be well capitalized to risk weighted assets (percent) | 8.00% | 6.00% | ||
Excess Tier 1 risk based capital to well capitalized | $ 2,401,000,000 | $ 3,485,000,000 | ||
Total capital [Abstract] | ||||
Total capital | $ 3,185,000,000 | $ 4,772,000,000 | ||
Total capital to risk weighted assets (percent) | 37.80% | 26.90% | ||
Capital required to be well capitalized | $ 842,000,000 | $ 1,772,000,000 | ||
Total capital required to be well capitalized to risk weighted assets (percent) | 10.00% | 10.00% | ||
Excess capital to be well capitalized | $ 2,343,000,000 | $ 3,000,000,000 | ||
Common equity Tier I capital [Abstract] | ||||
Common equity Tier 1 capital | $ 3,075,000,000 | |||
Common equity Tier 1 to risk weighted assets (percent) | 36.50% | |||
Common equity Tier 1 capital required to be well capitalized | $ 548,000,000 | |||
Common equity Tier 1 capital required to be well capitalized to risk weighted assets (percent) | 6.50% | |||
Excess Common equity Tier 1 capital to be well capitalized | $ 2,527,000,000 | |||
E TRADE Financial [Member] | ||||
Broker Dealer Subsidiaries Net Capital [Line Items] | ||||
Dividends from subsidiaries | 859,000,000 | 311,000,000 | $ 193,000,000 | |
Tier I leverage [Abstract] | ||||
Tier 1 leverage capital | $ 3,747,000,000 | |||
Tier 1 leverage capital to adjusted assets (percent) | 9.00% | |||
Tier 1 leverage capital required to be well capitalized | $ 2,093,000,000 | |||
Tier 1 leverage capital required to be well capitalized to adjusted assets (percent) | 5.00% | |||
Excess Tier 1 leverage capital to well capitalized | $ 1,654,000,000 | |||
Tier I risk based capital [Abstract] | ||||
Tier 1 risk based capital | $ 3,747,000,000 | |||
Tier 1 risk based capital to risk weighted assets (percent) | 39.30% | |||
Tier 1 risk based capital required to be well capitalized | $ 763,000,000 | |||
Tier 1 risk based capital required to be well capitalized to risk weighted assets (percent) | 8.00% | |||
Excess Tier 1 risk based capital to well capitalized | $ 2,984,000,000 | |||
Total capital [Abstract] | ||||
Total capital | $ 4,186,000,000 | |||
Total capital to risk weighted assets (percent) | 43.90% | |||
Capital required to be well capitalized | $ 954,000,000 | |||
Total capital required to be well capitalized to risk weighted assets (percent) | 10.00% | |||
Excess capital to be well capitalized | $ 3,232,000,000 | |||
Common equity Tier I capital [Abstract] | ||||
Common equity Tier 1 capital | $ 3,747,000,000 | |||
Common equity Tier 1 to risk weighted assets (percent) | 39.30% | |||
Common equity Tier 1 capital required to be well capitalized | $ 620,000,000 | |||
Common equity Tier 1 capital required to be well capitalized to risk weighted assets (percent) | 6.50% | |||
Excess Common equity Tier 1 capital to be well capitalized | $ 3,127,000,000 | |||
E TRADE Clearing [Member] | ||||
Broker Dealer Subsidiaries Net Capital [Line Items] | ||||
Required Net Capital | 161,000,000 | 170,000,000 | ||
Net Capital | 1,007,000,000 | 795,000,000 | ||
Excess Net Capital | 846,000,000 | 625,000,000 | ||
E TRADE Clearing [Member] | Subsequent Event [Member] | ||||
Broker Dealer Subsidiaries Net Capital [Line Items] | ||||
Dividends from subsidiaries | $ 124,000,000 | |||
E TRADE Securities [Member] | ||||
Broker Dealer Subsidiaries Net Capital [Line Items] | ||||
Required Net Capital | 250,000 | 250,000 | ||
Net Capital | 49,000,000 | 459,000,000 | ||
Excess Net Capital | 49,000,000 | 459,000,000 | ||
Dividends from subsidiaries | 565,000,000 | |||
E TRADE Securities [Member] | Subsequent Event [Member] | ||||
Broker Dealer Subsidiaries Net Capital [Line Items] | ||||
Dividends from subsidiaries | $ 24,000,000 | |||
Other Broker Dealers [Member] | ||||
Broker Dealer Subsidiaries Net Capital [Line Items] | ||||
Required Net Capital | 1,000,000 | 1,000,000 | ||
Net Capital | 15,000,000 | 19,000,000 | ||
Excess Net Capital | $ 14,000,000 | $ 18,000,000 |
Lease Arrangements (Details)
Lease Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Lease Arrangements Textuals [Abstract] | |||
Operating Leases, Longest Term, Year | 2,026 | ||
Operating leases, rent expense, net | $ 22 | $ 21 | $ 22 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 26 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 26 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 23 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 21 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 15 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 22 | ||
Operating Leases, Future Minimum Payments Due | 133 | ||
Sublease proceeds | (3) | ||
Net lease commitments | $ 130 |
Commitments, Contingencies an98
Commitments, Contingencies and Other Regulatory Matters (Details) $ / shares in Units, $ in Millions | Oct. 20, 2014 | May. 16, 2011 | Dec. 31, 2015USD ($)$ / principal_amount | Dec. 31, 2003USD ($) | Apr. 30, 2013$ / shares |
Loss Contingencies [Line Items] | |||||
Commitments to fund partnerships | $ 54 | ||||
Time deposit maturities, next rolling twelve months | $ 28 | ||||
Supply Commitment [Line Items] | |||||
Trust preferred securities contractual time period | 30 years | ||||
Liquidation amount per trust preferred security | $ / principal_amount | 1,000 | ||||
Estimated maximum potential liability trust preferred securities | $ 417 | ||||
Unfunded Commitments to Extend Credit [Member] | |||||
Supply Commitment [Line Items] | |||||
Unfunded Commitments To Extend Credit | $ 70 | ||||
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 | $ / shares | $ 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 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||
Number of Operating Segments | 2 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net operating interest income | $ 1,086 | $ 1,074 | $ 969 | ||||||||
Total non-interest income (loss) | 342 | 740 | 754 | ||||||||
Total net revenue | $ 454 | $ 73 | $ 445 | $ 456 | $ 461 | $ 440 | $ 438 | $ 475 | 1,428 | 1,814 | 1,723 |
Provision (benefit) for loan losses | (40) | 36 | 143 | ||||||||
Total operating expense | 1,207 | 1,145 | 1,275 | ||||||||
Income (loss) before other income (expense) and income taxes | 261 | 633 | 305 | ||||||||
Total other income (expense) | (170) | (181) | (110) | ||||||||
Income (loss) before income taxes | 91 | 452 | 195 | ||||||||
Income tax expense (benefit) | (177) | 159 | 109 | ||||||||
Net income | 89 | (153) | $ 292 | 40 | 41 | $ 86 | $ 69 | $ 97 | 268 | 293 | 86 |
Total assets | 45,427 | 45,530 | 45,427 | 45,530 | 46,280 | ||||||
Extinguishment of Debt Disclosures [Abstract] | |||||||||||
Reclassification of deferred losses on cash flow hedges | (370) | (370) | 0 | 0 | |||||||
Losses on early extinguishment of debt | $ (39) | $ (73) | (112) | (71) | 0 | ||||||
Corporate/Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net operating interest income | 1 | 1 | 0 | ||||||||
Total non-interest income (loss) | 0 | 0 | 0 | ||||||||
Total net revenue | 1 | 1 | 0 | ||||||||
Total operating expense | 275 | 231 | 213 | ||||||||
Income (loss) before other income (expense) and income taxes | (274) | (230) | (213) | ||||||||
Total other income (expense) | (170) | (181) | (110) | ||||||||
Income (loss) before income taxes | (444) | (411) | (323) | ||||||||
Total assets | 595 | 423 | 595 | 423 | 676 | ||||||
Trading And Investing | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net operating interest income | 702 | 618 | 527 | ||||||||
Total non-interest income (loss) | 667 | 697 | 690 | ||||||||
Total net revenue | 1,369 | 1,315 | 1,217 | ||||||||
Total operating expense | 827 | 766 | 883 | ||||||||
Income (loss) before other income (expense) and income taxes | 542 | 549 | 334 | ||||||||
Income (loss) before income taxes | 542 | 549 | 334 | ||||||||
Total assets | 11,554 | 12,032 | 11,554 | 12,032 | 10,820 | ||||||
Balance Sheet Management | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net operating interest income | 383 | 455 | 442 | ||||||||
Total non-interest income (loss) | (325) | 43 | 64 | ||||||||
Total net revenue | 58 | 498 | 506 | ||||||||
Provision (benefit) for loan losses | (40) | 36 | 143 | ||||||||
Total operating expense | 105 | 148 | 179 | ||||||||
Income (loss) before other income (expense) and income taxes | (7) | 314 | 184 | ||||||||
Income (loss) before income taxes | (7) | 314 | 184 | ||||||||
Total assets | $ 33,278 | $ 33,075 | $ 33,278 | $ 33,075 | $ 34,784 | ||||||
Minimum [Member] | Customer Concentration Risk [Member] | Gross Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number Of Customer Accounts | 0 | 0 | 0 | 0 | 0 | ||||||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Condensed Statement of Comprehe
Condensed Statement of Comprehensive Income (Loss) (Parent Company Only) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Statement of Income Captions [Line Items] | |||||||||||
Other revenues | $ 39 | $ 38 | $ 35 | ||||||||
Total net revenue | $ 454 | $ 73 | $ 445 | $ 456 | $ 461 | $ 440 | $ 438 | $ 475 | 1,428 | 1,814 | 1,723 |
Total operating expense | 1,207 | 1,145 | 1,275 | ||||||||
Income before other income (expense), income tax benefit, and equity in income (loss) of consolidated subsidiaries | 261 | 633 | 305 | ||||||||
Total other income (expense) | (170) | (181) | (110) | ||||||||
Income before income tax benefit and equity in income (loss) of consolidated subsidiaries | 91 | 452 | 195 | ||||||||
Income tax benefit | (177) | 159 | 109 | ||||||||
Equity in undistributed income (loss) of subsidiaries | 7 | 3 | 4 | ||||||||
Net income | $ 89 | $ (153) | $ 292 | $ 40 | $ 41 | $ 86 | $ 69 | $ 97 | 268 | 293 | 86 |
Other comprehensive income (loss) | 150 | 204 | (143) | ||||||||
Comprehensive income (loss) | 418 | 497 | (57) | ||||||||
Parent Company [Member] | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Dividends from subsidiaries | 859 | 311 | 193 | ||||||||
Other revenues | 371 | 333 | 281 | ||||||||
Total net revenue | 1,230 | 644 | 474 | ||||||||
Total operating expense | 487 | 421 | 359 | ||||||||
Income before other income (expense), income tax benefit, and equity in income (loss) of consolidated subsidiaries | 743 | 223 | 115 | ||||||||
Total other income (expense) | (127) | (166) | (108) | ||||||||
Income before income tax benefit and equity in income (loss) of consolidated subsidiaries | 616 | 57 | 7 | ||||||||
Income tax benefit | (287) | (88) | (76) | ||||||||
Equity in undistributed income (loss) of subsidiaries | (635) | 148 | 3 | ||||||||
Net income | 268 | 293 | 86 | ||||||||
Other comprehensive income (loss) | 150 | 204 | (143) | ||||||||
Comprehensive income (loss) | $ 418 | $ 497 | $ (57) |
Condensed Balance Sheet (Parent
Condensed Balance Sheet (Parent Company Only) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ||||
Cash and equivalents | $ 2,233 | $ 1,783 | $ 1,838 | $ 2,762 |
Property and equipment, net | 236 | 245 | ||
Deferred tax assets, net | 1,033 | 951 | ||
Other assets | 769 | 836 | ||
Total assets | 45,427 | 45,530 | 46,280 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Corporate debt | 997 | 1,366 | ||
Other liabilities | 575 | 774 | ||
Total liabilities | 39,628 | 40,155 | ||
Total shareholders’ equity | 5,799 | 5,375 | 4,856 | 4,904 |
Total liabilities and shareholders’ equity | 45,427 | 45,530 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash and equivalents | 432 | 220 | $ 406 | $ 400 |
Property and equipment, net | 156 | 165 | ||
Investment in consolidated subsidiaries | 5,434 | 5,763 | ||
Receivable from subsidiaries | 57 | 31 | ||
Deferred tax assets, net | 739 | 335 | ||
Other assets | 173 | 410 | ||
Total assets | 6,991 | 6,924 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Corporate debt | 997 | 1,366 | ||
Other liabilities | 195 | 183 | ||
Total liabilities | 1,192 | 1,549 | ||
Total shareholders’ equity | 5,799 | 5,375 | ||
Total liabilities and shareholders’ equity | $ 6,991 | $ 6,924 |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flows (Parent Company Only) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 89 | $ (153) | $ 292 | $ 40 | $ 41 | $ 86 | $ 69 | $ 97 | $ 268 | $ 293 | $ 86 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 325 | 331 | 395 | ||||||||
Equity in undistributed (income) loss from subsidiaries | (7) | (3) | (4) | ||||||||
Losses on early extinguishment of debt | 37 | 6 | 0 | ||||||||
Other | (6) | (2) | (1) | ||||||||
Net cash provided by operating activities | 832 | 701 | 1,117 | ||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures for property and equipment | (70) | (87) | (47) | ||||||||
Other | 73 | (69) | 6 | ||||||||
Net cash used in investing activities | 2 | 1,713 | 286 | ||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from issuance of senior notes | 460 | 540 | 0 | ||||||||
Payments on senior notes | (800) | (940) | 0 | ||||||||
Repurchases of common stock | (50) | 0 | 0 | ||||||||
Other | (8) | 53 | 2 | ||||||||
Net cash provided by (used in) financing activities | (384) | (2,469) | (2,327) | ||||||||
Increase (decrease) in cash and equivalents | 450 | (55) | (924) | ||||||||
Cash and equivalents, beginning of period | 1,783 | 1,838 | 1,783 | 1,838 | 2,762 | ||||||
Cash and equivalents, end of period | 2,233 | 1,783 | 2,233 | 1,783 | 1,838 | ||||||
Parent Company [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 268 | 293 | 86 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 44 | 38 | 40 | ||||||||
Equity in undistributed (income) loss from subsidiaries | 635 | (148) | (3) | ||||||||
Losses on early extinguishment of debt | 5 | 6 | 0 | ||||||||
Other | (163) | (28) | (60) | ||||||||
Net cash provided by operating activities | 789 | 161 | 63 | ||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures for property and equipment | (33) | (62) | (24) | ||||||||
Proceeds from sale of subsidiary | 0 | 76 | 0 | ||||||||
Cash contributions to subsidiaries | (147) | (29) | (39) | ||||||||
Other | 0 | 0 | 4 | ||||||||
Net cash used in investing activities | (180) | (15) | (59) | ||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from issuance of senior notes | 460 | 540 | 0 | ||||||||
Payments on senior notes | (800) | (940) | 0 | ||||||||
Repurchases of common stock | (50) | 0 | 0 | ||||||||
Other | (7) | 68 | 2 | ||||||||
Net cash provided by (used in) financing activities | (397) | (332) | 2 | ||||||||
Increase (decrease) in cash and equivalents | 212 | (186) | 6 | ||||||||
Cash and equivalents, beginning of period | $ 220 | $ 406 | 220 | 406 | 400 | ||||||
Cash and equivalents, end of period | $ 432 | $ 220 | $ 432 | $ 220 | $ 406 |
Condensed Financial Informat103
Condensed Financial Information (Parent Company) Guarantees (Details) - Foreign Exchange Guarantee [Member] - Parent Company [Member] $ in Millions | Dec. 31, 2015USD ($) |
Condensed Financial Information Parent Company Guarantees [Line Items] | |
Guarantor obligations, current carrying value | $ 0 |
Collateral Pledged Parent Company Guarantees | $ 0 |
Quarterly Data (Unaudited) (Det
Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total net revenue | $ 454 | $ 73 | $ 445 | $ 456 | $ 461 | $ 440 | $ 438 | $ 475 | $ 1,428 | $ 1,814 | $ 1,723 |
Net income (loss) | $ 89 | $ (153) | $ 292 | $ 40 | $ 41 | $ 86 | $ 69 | $ 97 | $ 268 | $ 293 | $ 86 |
Earnings (loss) per share: | |||||||||||
Basic (in dollars per share) | $ 0.31 | $ (0.53) | $ 1.01 | $ 0.14 | $ 0.14 | $ 0.30 | $ 0.24 | $ 0.34 | $ 0.92 | $ 1.02 | $ 0.30 |
Diluted (in dollars per share) | $ 0.30 | $ (0.53) | $ 0.99 | $ 0.14 | $ 0.14 | $ 0.29 | $ 0.24 | $ 0.33 | $ 0.91 | $ 1 | $ 0.29 |
Debt Instrument [Line Items] | |||||||||||
Gains (Losses) on early extinguishment of debt | $ (39) | $ (73) | $ (112) | $ (71) | $ 0 | ||||||
Quarterly Financial Information Disclosure Details (Textuals) [Abstract] | |||||||||||
Reclassification of deferred losses on cash flow hedges | (370) | (370) | 0 | $ 0 | |||||||
Termination of legacy wholesale funding obligations | $ 4,400 | $ 4,400 | |||||||||
Senior Notes Interest Bearing Six And Three Fourths Percent and Six Percent [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gains (Losses) on early extinguishment of debt | $ (59) | $ (59) |