Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Documentand Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 31-Mar-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | BK |
Entity Registrant Name | Bank of New York Mellon CORP |
Entity Central Index Key | 1390777 |
Current Fiscal Year End Date | -19 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding (shares) | 1,121,511,672 |
Consolidated_Income_Statement_
Consolidated Income Statement (unaudited) (USD $) | 3 Months Ended | |||||
In Millions, except Share data in Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |||
Investment services fees: | ||||||
Foreign exchange and other trading revenue | $229 | $151 | $136 | |||
Net securities gains | 24 | 31 | 22 | |||
Total fee and other revenue | 3,033 | [1] | 2,953 | [2] | 2,899 | [3] |
Net interest revenue | ||||||
Interest revenue | 807 | 802 | 812 | |||
Interest expense | 79 | 90 | 84 | |||
Net interest revenue | 728 | 712 | 728 | |||
Provision for credit losses | 2 | 1 | -18 | |||
Net interest revenue after provision for credit losses | 726 | 711 | 746 | |||
Noninterest expense | ||||||
Staff | 1,485 | 1,418 | 1,511 | |||
Professional, legal and other purchased services | 302 | 390 | 312 | |||
Software | 158 | 160 | 152 | |||
Net occupancy | 151 | 150 | 154 | |||
Distribution and servicing | 98 | 102 | 107 | |||
Furniture and equipment | 70 | 75 | 85 | |||
Sub-custodian | 70 | 70 | 68 | |||
Business development | 61 | 75 | 64 | |||
Other | 242 | 211 | 223 | |||
Amortization of intangible assets | 66 | 73 | 75 | |||
Merger and integration, litigation and restructuring charges | -3 | 800 | -12 | |||
Total noninterest expense | 2,700 | 3,524 | 2,739 | |||
Income | ||||||
Income before income taxes | 1,149 | 164 | 926 | |||
Provision (benefit) for income taxes | 280 | -93 | 232 | |||
Net income (loss) | 869 | 257 | 694 | |||
Net (income) attributable to noncontrolling interests (includes $(90), $(24) and $(20) related to consolidated investment management funds, respectively) | -90 | -24 | -20 | |||
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 779 | 233 | 674 | |||
Preferred stock dividends | -13 | -24 | -13 | |||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | 766 | 209 | 661 | |||
Reconciliation of net income to the net income applicable to common shareholders of The Bank of New York Mellon Corporation | ||||||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | 766 | 209 | 661 | |||
Less: Earnings allocated to participating securities | 12 | 4 | 13 | |||
Net income applicable to the common shareholders of The Bank of New York Mellon Corporation after required adjustment for the calculation of basic and diluted earnings per common share | 754 | 205 | 648 | |||
Average common shares and equivalents outstanding of The Bank of New York Mellon Corporation | ||||||
Basic (shares) | 1,118,602 | 1,120,672 | 1,138,645 | |||
Common stock equivalents (shares) | 18,667 | 21,067 | 20,435 | |||
Less: Participating securities (shares) | -10,963 | -12,699 | -14,570 | |||
Diluted (shares) | 1,126,306 | 1,129,040 | 1,144,510 | |||
Anti-dilutive securities (shares) | 37,517 | [4] | 39,944 | [4] | 47,997 | [4] |
Basic: | ||||||
Basic (usd per share) | $0.67 | [5] | $0.18 | [5] | $0.57 | [5] |
Diluted: | ||||||
Diluted (usd per share) | $0.67 | [5] | $0.18 | [5] | $0.57 | [5] |
Operations | ||||||
Investment services fees: | ||||||
Asset servicing | 1,038 | 1,019 | 1,009 | |||
Clearing services | 344 | 347 | 325 | |||
Issuer services | 232 | 193 | 229 | |||
Treasury services | 137 | 145 | 136 | |||
Total investment services fees | 1,751 | 1,704 | 1,699 | |||
Investment management and performance fees | 854 | 885 | 843 | |||
Foreign exchange and other trading revenue | 229 | 151 | 136 | |||
Distribution and servicing | 41 | 43 | 43 | |||
Financing-related fees | 40 | 43 | 38 | |||
Investment and other income | 63 | 78 | 102 | |||
Total fee revenue | 2,978 | 2,904 | 2,861 | |||
Net securities gains — including other-than-temporary impairment | 26 | 30 | 23 | |||
Noncredit-related portion of other-than-temporary impairment (recognized in other comprehensive income) | 2 | -1 | 1 | |||
Net securities gains | 24 | 31 | 22 | |||
Total fee and other revenue | 3,002 | 2,935 | 2,883 | |||
Investment Management funds | ||||||
Investment services fees: | ||||||
Total fee and other revenue | 31 | 18 | 16 | |||
Operations of consolidated investment management funds | ||||||
Investment income | 189 | 101 | 138 | |||
Interest of investment management fund note holders | 68 | 59 | 102 | |||
Income from consolidated investment management funds | 121 | 42 | 36 | |||
Income | ||||||
Net (income) attributable to noncontrolling interests (includes $(90), $(24) and $(20) related to consolidated investment management funds, respectively) | ($90) | ($24) | ($20) | |||
[1] | Both total fee and other revenue and total revenue include the net income from consolidated investment management funds of $31 million, representing $121 million of income and noncontrolling interests of $90 million. Income before taxes is net of noncontrolling interests of $90 million. | |||||
[2] | Both total fee and other revenue and total revenue include the net income from consolidated investment management funds of $18 million, representing $42 million of income and noncontrolling interests of $24 million. Income before taxes is net of noncontrolling interests of $24 million. | |||||
[3] | Both total fee and other revenue and total revenue include the net income from consolidated investment management funds of $16 million, representing $36 million of income and noncontrolling interests of $20 million. Income before taxes is net of noncontrolling interests of $20 million. | |||||
[4] | Represents stock options, restricted stock, restricted stock units and participating securities outstanding but not included in the computation of diluted average common shares because their effect would be anti-dilutive. | |||||
[5] | Basic and diluted earnings per share under the two-class method are determined on the net income applicable to common shareholders of The Bank of New York Mellon Corporation reported on the income statement less earnings allocated to participating securities, and the change in the excess of redeemable value over the fair value of noncontrolling interests, if applicable. |
Consolidated_Income_Statement_1
Consolidated Income Statement (unaudited) (Parenthetical) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Net (income) attributable to noncontrolling interests | ($90) | ($24) | ($20) |
Investment Management | |||
Net (income) attributable to noncontrolling interests | $90 | $24 | $20 |
Consolidated_Comprehensive_Inc
Consolidated Comprehensive Income Statement (unaudited) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $869 | $257 | $694 | |||
Other comprehensive income (loss), net of tax: | ||||||
Foreign currency translation adjustments | -713 | -331 | 37 | |||
Unrealized gain (loss) on assets available-for-sale: | ||||||
Unrealized gain (loss) arising during the period | 134 | 37 | 162 | |||
Reclassification adjustment | -15 | [1] | -18 | [1] | -13 | [1] |
Total unrealized gain (loss) on assets available-for-sale | 119 | 19 | 149 | |||
Defined benefit plans: | ||||||
Prior service cost arising during the period | 0 | 2 | 0 | |||
Net gain (loss) arising during the period | -109 | -479 | 0 | |||
Foreign exchange adjustment | 0 | -1 | 0 | |||
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost | 5 | [1] | 22 | [1] | 19 | [1] |
Total defined benefit plans | -104 | -456 | 19 | |||
Net unrealized gain (loss) on cash flow hedges | -1 | -2 | 1 | |||
Total other comprehensive income (loss), net of tax | -699 | [2] | -770 | [2] | 206 | [2] |
Net (income) attributable to noncontrolling interests | -90 | -24 | -20 | |||
Other comprehensive (income) loss attributable to noncontrolling interests | 151 | 52 | -3 | |||
Net comprehensive income (loss) | $231 | ($485) | $877 | |||
[1] | The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the Consolidated Income Statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the Consolidated Income Statement. See Note 16 of the Notes to Consolidated Financial Statements for the location of the reclassification adjustment related to cash flow hedges on the Consolidated Income Statement. | |||||
[2] | Other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders was $(548) million for the quarter ended March 31, 2015, $(718) million for the quarter ended Dec. 31, 2014 and $203 million for the quarter ended March 31, 2014. |
Consolidated_Comprehensive_Inc1
Consolidated Comprehensive Income Statement (unaudited) (Parenthetical) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | |||
Net gain (loss) arising during the period | ($548) | ($718) | $203 |
Consolidated_Balance_Sheet_una
Consolidated Balance Sheet (unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Securities: | ||||
Held-to-maturity (fair value of $41,676 and $21,127) | $41,237 | |||
Loans (includes $140 and $21, at fair value) | 62,326 | [1] | 59,132 | [1] |
Allowance for loan losses | -190 | -191 | ||
Goodwill | 17,663 | 17,869 | ||
Intangible assets | 4,047 | 4,127 | ||
Other assets (includes $2,223 and $1,916, at fair value) | 22,315 | 20,490 | ||
Total assets | 399,088 | 385,303 | ||
Deposits: | ||||
Total liabilities | 360,208 | 346,600 | ||
Temporary equity | ||||
Redeemable noncontrolling interests | 215 | 229 | ||
Permanent equity | ||||
Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 15,826 and 15,826 shares | 1,562 | [2] | 1,562 | [2] |
Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,303,799,499 and 1,290,222,821 shares | 13 | 13 | ||
Additional paid-in capital | 24,887 | 24,626 | ||
Retained earnings | 18,257 | 17,683 | ||
Accumulated other comprehensive loss, net of tax | -2,182 | -1,634 | ||
Less: Treasury stock of 182,287,827 and 171,995,262 common shares, at cost | -5,209 | -4,809 | ||
Total The Bank of New York Mellon Corporation shareholders’ equity | 37,328 | 37,441 | ||
Total permanent equity | 38,665 | [3] | 38,474 | [3] |
Total liabilities, temporary equity and permanent equity | 399,088 | 385,303 | ||
Operations | ||||
Cash and due from: | ||||
Banks | 7,167 | 6,970 | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 89,704 | 96,682 | ||
Interest-bearing deposits with banks | 18,937 | 19,495 | ||
Federal funds sold and securities purchased under resale agreements | 28,268 | 20,302 | ||
Securities: | ||||
Held-to-maturity (fair value of $41,676 and $21,127) | 41,237 | 20,933 | ||
Available-for-sale | 87,717 | 98,330 | ||
Total securities | 128,954 | 119,263 | ||
Trading assets | 9,505 | 9,881 | ||
Loans (includes $140 and $21, at fair value) | 62,326 | 59,132 | ||
Allowance for loan losses | -190 | -191 | ||
Net loans | 62,136 | 58,941 | ||
Premises and equipment | 1,410 | 1,394 | ||
Accrued interest receivable | 557 | 607 | ||
Goodwill | 17,663 | 17,869 | ||
Intangible assets | 4,047 | 4,127 | ||
Other assets (includes $2,223 and $1,916, at fair value) | 22,315 | 20,490 | ||
Other assets | 2,223 | 1,916 | ||
Total assets | 390,663 | 376,021 | ||
Deposits: | ||||
Noninterest-bearing (principally U.S. offices) | 111,622 | 104,240 | ||
Interest-bearing deposits in U.S. offices | 60,624 | 53,236 | ||
Interest-bearing deposits in Non-U.S. offices | 109,013 | 108,393 | ||
Total deposits | 281,259 | 265,869 | ||
Federal funds purchased and securities sold under repurchase agreements | 7,919 | 11,469 | ||
Trading liabilities | 7,342 | 7,434 | ||
Payables to customers and broker-dealers | 21,959 | 21,181 | ||
Commercial paper | 0 | 0 | ||
Other borrowed funds | 869 | 786 | ||
Accrued taxes and other expenses | 6,258 | 6,903 | ||
Other liabilities (including allowance for lending-related commitments of $93 and $89, also includes $612 and $451, at fair value) | 7,581 | 5,025 | ||
Long-term debt (includes $355 and $347, at fair value) | 20,401 | 20,264 | ||
Other liabilities | 612 | 451 | ||
Total liabilities | 353,588 | 338,931 | ||
Investment Management funds | ||||
Securities: | ||||
Trading assets | 7,852 | 8,678 | ||
Other assets | 573 | 604 | ||
Subtotal assets of consolidated investment management funds, at fair value | 8,425 | 9,282 | ||
Deposits: | ||||
Trading liabilities | 6,584 | 7,660 | ||
Other liabilities | 36 | 9 | ||
Subtotal liabilities of consolidated investment management funds, at fair value | 6,620 | 7,669 | ||
Permanent equity | ||||
Nonredeemable noncontrolling interests of consolidated investment management funds | $1,337 | $1,033 | ||
[1] | Net of unearned income of $843 million at March 31, 2015 and $866 million at Dec. 31, 2014 primarily on domestic and foreign lease financings. | |||
[2] | The carrying value of the Series C and Series D preferred stock is recorded net of issuance costs. | |||
[3] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $35,879 million at Dec. 31, 2014 and $35,766 million at March 31, 2015. |
Consolidated_Balance_Sheet_una1
Consolidated Balance Sheet (unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 3,500,000,000 | 3,500,000,000 |
Common stock, issued (shares) | 1,303,799,499 | 1,290,222,821 |
Treasury stock, common shares (shares) | 182,287,827 | 171,995,262 |
Preferred stock, par value (usd per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (shares) | 15,826 | 15,826 |
Operations | ||
Held-to-maturity, fair value | $41,676 | $21,127 |
Loans, fair value | 140 | 21 |
Other assets | 2,223 | 1,916 |
Other liabilities, allowance for lending related commitments | 93 | 89 |
Other liabilities, fair value, | 612 | 451 |
Long-term debt, fair value | 355 | 347 |
Level 2 | ||
Loans, fair value | $140 | $21 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (unaudited) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Operating activities | |||
Net income | $869 | $257 | $694 |
Net (income) attributable to noncontrolling interests | -90 | -24 | -20 |
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 779 | 674 | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Provision for credit losses | 2 | 1 | -18 |
Pension plan contributions | -13 | -12 | |
Depreciation and amortization | 340 | 333 | |
Deferred tax (benefit) | -107 | -52 | |
Net securities (gains) and venture capital (income) | -21 | -27 | |
Change in trading activities | 283 | 229 | |
Change in accruals and other, net | -1,327 | -2,182 | |
Net cash (used for) operating activities | -64 | -1,055 | |
Investing activities | |||
Change in interest-bearing deposits with banks | 440 | -7,633 | |
Change in interest-bearing deposits with the Federal Reserve and other central banks | 6,978 | 21,757 | |
Purchases of securities held-to-maturity | -10,575 | -4 | |
Paydowns of securities held-to-maturity | 483 | 415 | |
Maturities of securities held-to-maturity | 3 | 8 | |
Purchases of securities available-for-sale | -11,759 | -12,499 | |
Sales of securities available-for-sale | 8,679 | 8,091 | |
Paydowns of securities available-for-sale | 2,008 | 1,755 | |
Maturities of securities available-for-sale | 3,803 | 1,362 | |
Net change in loans | -3,333 | -2,539 | |
Sales of loans and other real estate | 98 | 204 | |
Change in federal funds sold and securities purchased under resale agreements | -7,965 | -3,062 | |
Change in seed capital investments | 13 | -176 | |
Purchases of premises and equipment/capitalized software | -162 | -201 | |
Acquisitions, net of cash | -9 | -1 | |
Other, net | 995 | -76 | |
Net cash (used for) provided by investing activities | -10,303 | 7,401 | |
Financing activities | |||
Change in deposits | 13,456 | -8,910 | |
Change in federal funds purchased and securities sold under repurchase agreements | -3,550 | 287 | |
Change in payables to customers and broker-dealers | 778 | 1,115 | |
Change in other borrowed funds | 6 | 642 | |
Change in commercial paper | 0 | -69 | |
Net proceeds from the issuance of long-term debt | 1,993 | 1,445 | |
Repayments of long-term debt | -2,005 | -704 | |
Proceeds from the exercise of stock options | 81 | 51 | |
Issuance of common stock | 6 | 6 | |
Treasury stock acquired | -400 | -375 | |
Common cash dividends paid | -192 | -173 | |
Preferred cash dividends paid | -13 | -13 | |
Other, net | 427 | -19 | |
Net cash provided by (used for) financing activities | 10,587 | -6,717 | |
Effect of exchange rate changes on cash | -23 | 3 | |
Change in cash and due from banks | |||
Change in cash and due from banks | 197 | -368 | |
Cash and due from banks at beginning of period | 6,970 | 6,460 | |
Cash and due from banks at end of period | 7,167 | 6,970 | 6,092 |
Supplemental disclosures | |||
Interest paid | 134 | 97 | |
Income taxes paid | 538 | 74 | |
Income taxes refunded | $869 | $5 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Equity (unaudited) (USD $) | Total | Preferred stock | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss), net of tax | Treasury stock | Non- redeemable noncontrolling interests of consolidated investment management funds | Redeemable non- controlling interests/ temporary equity | |
In Millions, unless otherwise specified | ||||||||||
Beginning Balance at Dec. 31, 2014 | $38,474 | [1] | $1,562 | $13 | $24,626 | $17,683 | ($1,634) | ($4,809) | $1,033 | $229 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares issued to shareholders of noncontrolling interests | 15 | |||||||||
Redemption of subsidiary shares from noncontrolling interests | -45 | |||||||||
Other net changes in noncontrolling interests | 327 | -27 | 354 | 27 | ||||||
Net income | 869 | 779 | 90 | |||||||
Other comprehensive income (loss) | -688 | -548 | -140 | -11 | ||||||
Dividends: | ||||||||||
Common stock at $0.17 per share | -192 | -192 | ||||||||
Preferred stock | -13 | -13 | ||||||||
Repurchase of common stock | -400 | -400 | ||||||||
Common stock issued under: | ||||||||||
Employee benefit plans | 7 | 7 | ||||||||
Direct stock purchase and dividend reinvestment plan | 5 | 5 | ||||||||
Stock awards and options exercised | 276 | 276 | ||||||||
Ending Balance at Mar. 31, 2015 | $38,665 | [1] | $1,562 | $13 | $24,887 | $18,257 | ($2,182) | ($5,209) | $1,337 | $215 |
[1] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $35,879 million at Dec. 31, 2014 and $35,766 million at March 31, 2015. |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Equity (unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
The Bank of New York Mellon Corporation shareholders’ equity | $37,328 | $37,441 |
Dividends on common stock, per share (usd per share) | $0.17 | |
Common stock | ||
The Bank of New York Mellon Corporation shareholders’ equity | $35,766 | $35,879 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation |
Basis of presentation | |
The accounting and financial reporting policies of BNY Mellon, a global financial services company, conform to U.S. generally accepted accounting principles (“GAAP”) and prevailing industry practices. | |
The accompanying consolidated financial statements are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods have been made. These financial statements should be read in conjunction with BNY Mellon’s Annual Report on Form 10-K for the year ended Dec. 31, 2014. Certain immaterial reclassifications have been made to prior periods to place them on a basis comparable with current period presentation. | |
Use of estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates based upon assumptions about future economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Amounts subject to estimates are items such as the allowance for loan losses and lending-related commitments, the fair value of financial instruments and other-than-temporary impairments, goodwill and intangible assets and pension accounting. Among other effects, such changes in estimates could result in future impairments of investment securities, goodwill and intangible assets and establishment of allowances for loan losses and lending-related commitments as well as changes in pension and post-retirement expense. |
Acquisitions_and_dispositions
Acquisitions and dispositions | 3 Months Ended |
Mar. 31, 2015 | |
Business Acquisitions and Dispositions [Abstract] | |
Acquisitions and dispositions | Acquisitions and dispositions |
We sometimes structure our acquisitions with both an initial payment and later contingent payments tied to post-closing revenue or income growth. There were no contingent payments in the first quarter of 2015. | |
At March 31, 2015, we are potentially obligated to pay additional consideration that could amount to $4 million over the next 1 year for our acquired companies, based on contractual agreements. The acquisitions and dispositions described below did not have a material impact on BNY Mellon’s results of operations. | |
Acquisitions in 2015 | |
On Jan. 2, 2015, BNY Mellon acquired Cutwater Asset Management, a U.S.-based fixed income and solutions specialist with approximately $23 billion in assets under management. | |
Acquisitions in 2014 | |
On May 1, 2014, BNY Mellon acquired the remaining 65% interest of HedgeMark International, LLC for $26 million. Since 2011, BNY Mellon held a 35% ownership stake in HedgeMark. Goodwill related to this acquisition totaled $47 million and is included in the Investment Services business. The customer relationship intangible asset related to this acquisition is included in our Investment Services business and totaled $1 million at acquisition. | |
Dispositions in 2014 | |
On April 23, 2014, BNY Mellon sold the subsidiary that conducts corporate trust business in Mexico that was part of our Investment Services business, for $65 million. As a result of this sale, we recorded an after-tax gain of $4 million. In addition, goodwill of $8 million and customer relationship intangible assets of $1 million were removed from the balance sheet as a result of this sale. |
Securities
Securities | 3 Months Ended | |||||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||||
Securities [Abstract] | ||||||||||||||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||||||||||||
The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of securities at March 31, 2015 and Dec. 31, 2014. | ||||||||||||||||||||||||||||||||||
Securities at | Amortized cost | Gross | Fair value | |||||||||||||||||||||||||||||||
March 31, 2015 | unrealized | |||||||||||||||||||||||||||||||||
(in millions) | Gains | Losses | ||||||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 18,042 | $ | 548 | $ | 4 | $ | 18,586 | ||||||||||||||||||||||||||
U.S. Government agencies | 383 | 2 | — | 385 | ||||||||||||||||||||||||||||||
State and political subdivisions | 5,053 | 106 | 20 | 5,139 | ||||||||||||||||||||||||||||||
Agency RMBS | 25,029 | 445 | 291 | 25,183 | ||||||||||||||||||||||||||||||
Non-agency RMBS | 908 | 36 | 24 | 920 | ||||||||||||||||||||||||||||||
Other RMBS | 1,382 | 23 | 19 | 1,386 | ||||||||||||||||||||||||||||||
Commercial MBS | 1,812 | 44 | 5 | 1,851 | ||||||||||||||||||||||||||||||
Agency commercial MBS | 3,728 | 64 | 7 | 3,785 | ||||||||||||||||||||||||||||||
Asset-backed CLOs | 2,250 | 9 | 1 | 2,258 | ||||||||||||||||||||||||||||||
Other asset-backed securities | 3,398 | 6 | 4 | 3,400 | ||||||||||||||||||||||||||||||
Foreign covered bonds | 2,732 | 76 | — | 2,808 | ||||||||||||||||||||||||||||||
Corporate bonds | 1,695 | 52 | 2 | 1,745 | ||||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 14,988 | 258 | 3 | 15,243 | ||||||||||||||||||||||||||||||
Other debt securities | 2,057 | 11 | — | 2,068 | ||||||||||||||||||||||||||||||
Equity securities | 91 | 1 | — | 92 | ||||||||||||||||||||||||||||||
Money market funds | 730 | — | — | 730 | ||||||||||||||||||||||||||||||
Non-agency RMBS (a) | 1,699 | 442 | 3 | 2,138 | ||||||||||||||||||||||||||||||
Total securities available-for-sale (b) | $ | 85,977 | $ | 2,123 | $ | 383 | $ | 87,717 | ||||||||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | 10,372 | 92 | 2 | 10,462 | ||||||||||||||||||||||||||||||
U.S. Government agencies | 1,168 | 1 | — | 1,169 | ||||||||||||||||||||||||||||||
State and political subdivisions | 21 | — | 1 | 20 | ||||||||||||||||||||||||||||||
Agency RMBS | 25,606 | 326 | 14 | 25,918 | ||||||||||||||||||||||||||||||
Non-agency RMBS | 144 | 8 | 2 | 150 | ||||||||||||||||||||||||||||||
Other RMBS | 267 | 3 | 9 | 261 | ||||||||||||||||||||||||||||||
Commercial MBS | 11 | — | — | 11 | ||||||||||||||||||||||||||||||
Agency commercial MBS | 359 | 4 | — | 363 | ||||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 3,289 | 33 | — | 3,322 | ||||||||||||||||||||||||||||||
Total securities held-to-maturity | $ | 41,237 | $ | 467 | $ | 28 | $ | 41,676 | ||||||||||||||||||||||||||
Total securities | $ | 127,214 | $ | 2,590 | $ | 411 | $ | 129,393 | ||||||||||||||||||||||||||
(a) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | |||||||||||||||||||||||||||||||||
(b) | Includes gross unrealized gains of $101 million and gross unrealized losses of $296 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||||||||||||||||||||||||||||||||
Securities at | Amortized cost | Gross | Fair value | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | unrealized | |||||||||||||||||||||||||||||||||
(in millions) | Gains | Losses | ||||||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 19,592 | $ | 420 | $ | 15 | $ | 19,997 | ||||||||||||||||||||||||||
U.S. Government agencies | 342 | 3 | 2 | 343 | ||||||||||||||||||||||||||||||
State and political subdivisions | 5,176 | 95 | 24 | 5,247 | ||||||||||||||||||||||||||||||
Agency RMBS | 32,568 | 357 | 325 | 32,600 | ||||||||||||||||||||||||||||||
Non-agency RMBS | 942 | 37 | 26 | 953 | ||||||||||||||||||||||||||||||
Other RMBS | 1,551 | 25 | 25 | 1,551 | ||||||||||||||||||||||||||||||
Commercial MBS | 1,927 | 39 | 7 | 1,959 | ||||||||||||||||||||||||||||||
Agency commercial MBS | 3,105 | 36 | 9 | 3,132 | ||||||||||||||||||||||||||||||
Asset-backed CLOs | 2,128 | 9 | 7 | 2,130 | ||||||||||||||||||||||||||||||
Other asset-backed securities | 3,241 | 5 | 6 | 3,240 | ||||||||||||||||||||||||||||||
Foreign covered bonds | 2,788 | 80 | — | 2,868 | ||||||||||||||||||||||||||||||
Corporate bonds | 1,747 | 45 | 7 | 1,785 | ||||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 17,062 | 224 | 2 | 17,284 | ||||||||||||||||||||||||||||||
Other debt securities | 2,162 | 7 | — | 2,169 | ||||||||||||||||||||||||||||||
Equity securities | 94 | 1 | — | 95 | ||||||||||||||||||||||||||||||
Money market funds | 763 | — | — | 763 | ||||||||||||||||||||||||||||||
Non-agency RMBS (a) | 1,747 | 471 | 4 | 2,214 | ||||||||||||||||||||||||||||||
Total securities available-for-sale (b) | $ | 96,935 | $ | 1,854 | $ | 459 | $ | 98,330 | ||||||||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | 5,047 | 32 | 16 | 5,063 | ||||||||||||||||||||||||||||||
U.S. Government agencies | 344 | — | 3 | 341 | ||||||||||||||||||||||||||||||
State and political subdivisions | 24 | 1 | 1 | 24 | ||||||||||||||||||||||||||||||
Agency RMBS | 14,006 | 200 | 44 | 14,162 | ||||||||||||||||||||||||||||||
Non-agency RMBS | 153 | 9 | 2 | 160 | ||||||||||||||||||||||||||||||
Other RMBS | 315 | 2 | 8 | 309 | ||||||||||||||||||||||||||||||
Commercial MBS | 13 | — | — | 13 | ||||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 1,031 | 24 | — | 1,055 | ||||||||||||||||||||||||||||||
Total securities held-to-maturity | $ | 20,933 | $ | 268 | $ | 74 | $ | 21,127 | ||||||||||||||||||||||||||
Total securities | $ | 117,868 | $ | 2,122 | $ | 533 | $ | 119,457 | ||||||||||||||||||||||||||
(a) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | |||||||||||||||||||||||||||||||||
(b) | Includes gross unrealized gains of $60 million and gross unrealized losses of $282 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||||||||||||||||||||||||||||||||
The following table presents the gross securities gains, losses and impairments. | ||||||||||||||||||||||||||||||||||
Net securities gains (losses) | ||||||||||||||||||||||||||||||||||
(in millions) | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||||||||
Realized gross gains | $ | 25 | $ | 41 | $ | 30 | ||||||||||||||||||||||||||||
Realized gross losses | — | — | (3 | ) | ||||||||||||||||||||||||||||||
Recognized gross impairments | (1 | ) | (10 | ) | (5 | ) | ||||||||||||||||||||||||||||
Total net securities gains | $ | 24 | $ | 31 | $ | 22 | ||||||||||||||||||||||||||||
In the first quarter of 2015, Agency MBS, sovereign debt and U.S. Treasury securities with an aggregate amortized cost of $11.6 billion and fair value of $11.6 billion were transferred from available-for-sale securities to held-to-maturity securities. This action, in addition to realizing gains on the sales of securities, is expected to mute the impact to our accumulated other comprehensive income in the event of a rise in interest rates. | ||||||||||||||||||||||||||||||||||
Temporarily impaired securities | ||||||||||||||||||||||||||||||||||
At March 31, 2015, the unrealized losses on the investment securities portfolio were primarily attributable to an increase in interest rates from date of purchase to the date they were transferred to held-to-maturity. Specifically, $296 million of the unrealized losses at March 31, 2015 and $282 million at Dec. 31, 2014 reflected in the available-for-sale sections of the tables below relate to certain securities (primarily Agency RMBS) that were transferred from available-for-sale to held-to-maturity. The unrealized losses will be amortized into net interest revenue over the estimated lives of the securities. The transfer created a new cost basis for the securities. As a result, if these securities have experienced unrealized losses since the date of transfer, the corresponding fair value and unrealized losses would be reflected in the held-to-maturity sections of the following tables. We do not intend to sell these securities and it is not more likely than not that we will have to sell these securities. | ||||||||||||||||||||||||||||||||||
The following tables show the aggregate related fair value of investments with a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or more. | ||||||||||||||||||||||||||||||||||
Temporarily impaired securities at March 31, 2015 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||
(in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 643 | $ | 4 | $ | — | $ | — | $ | 643 | $ | 4 | ||||||||||||||||||||||
State and political subdivisions | 260 | 15 | 300 | 5 | 560 | 20 | ||||||||||||||||||||||||||||
Agency RMBS | 789 | 13 | 1,575 | 278 | 2,364 | 291 | ||||||||||||||||||||||||||||
Non-agency RMBS | 198 | 1 | 367 | 23 | 565 | 24 | ||||||||||||||||||||||||||||
Other RMBS | — | — | 392 | 19 | 392 | 19 | ||||||||||||||||||||||||||||
Commercial MBS | 123 | — | 221 | 5 | 344 | 5 | ||||||||||||||||||||||||||||
Agency commercial MBS | 853 | 3 | 410 | 4 | 1,263 | 7 | ||||||||||||||||||||||||||||
Asset-backed CLOs | 806 | 1 | — | — | 806 | 1 | ||||||||||||||||||||||||||||
Other asset-backed securities | 865 | 1 | 505 | 3 | 1,370 | 4 | ||||||||||||||||||||||||||||
Corporate bonds | 2 | — | 192 | 2 | 194 | 2 | ||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 1,736 | 3 | — | — | 1,736 | 3 | ||||||||||||||||||||||||||||
Non-agency RMBS (a) | 54 | 1 | 34 | 2 | 88 | 3 | ||||||||||||||||||||||||||||
Total securities available-for-sale (b) | $ | 6,329 | $ | 42 | $ | 3,996 | $ | 341 | $ | 10,325 | $ | 383 | ||||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 1,316 | $ | 2 | $ | 198 | $ | — | $ | 1,514 | $ | 2 | ||||||||||||||||||||||
State and political subdivisions | 4 | 1 | — | — | 4 | 1 | ||||||||||||||||||||||||||||
Agency RMBS | 826 | 3 | 2,434 | 11 | 3,260 | 14 | ||||||||||||||||||||||||||||
Non-agency RMBS | 44 | — | 32 | 2 | 76 | 2 | ||||||||||||||||||||||||||||
Other RMBS | — | — | 185 | 9 | 185 | 9 | ||||||||||||||||||||||||||||
Total securities held-to-maturity | $ | 2,190 | $ | 6 | $ | 2,849 | $ | 22 | $ | 5,039 | $ | 28 | ||||||||||||||||||||||
Total temporarily impaired securities | $ | 8,519 | $ | 48 | $ | 6,845 | $ | 363 | $ | 15,364 | $ | 411 | ||||||||||||||||||||||
(a) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | |||||||||||||||||||||||||||||||||
(b) | Includes gross unrealized losses for 12 months or more of $296 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||||||||||||||||||||||||||||||||
Temporarily impaired securities at Dec. 31, 2014 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||
(in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 6,049 | $ | 15 | $ | — | $ | — | $ | 6,049 | $ | 15 | ||||||||||||||||||||||
U.S. Government agencies | 32 | — | 100 | 2 | 132 | 2 | ||||||||||||||||||||||||||||
State and political subdivisions | 410 | 18 | 393 | 6 | 803 | 24 | ||||||||||||||||||||||||||||
Agency RMBS | 3,385 | 13 | 5,016 | 312 | 8,401 | 325 | ||||||||||||||||||||||||||||
Non-agency RMBS | 143 | 1 | 382 | 25 | 525 | 26 | ||||||||||||||||||||||||||||
Other RMBS | — | — | 449 | 25 | 449 | 25 | ||||||||||||||||||||||||||||
Commercial MBS | 175 | 1 | 394 | 6 | 569 | 7 | ||||||||||||||||||||||||||||
Agency commercial MBS | 719 | 1 | 550 | 8 | 1,269 | 9 | ||||||||||||||||||||||||||||
Asset-backed CLOs | 1,376 | 7 | — | — | 1,376 | 7 | ||||||||||||||||||||||||||||
Other asset-backed securities | 1,078 | 2 | 539 | 4 | 1,617 | 6 | ||||||||||||||||||||||||||||
Corporate bonds | 51 | — | 230 | 7 | 281 | 7 | ||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 2,175 | 2 | — | — | 2,175 | 2 | ||||||||||||||||||||||||||||
Non-agency RMBS (a) | 42 | 1 | 34 | 3 | 76 | 4 | ||||||||||||||||||||||||||||
Total securities available-for-sale (b) | $ | 15,635 | $ | 61 | $ | 8,087 | $ | 398 | $ | 23,722 | $ | 459 | ||||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 1,066 | $ | 6 | $ | 1,559 | $ | 10 | $ | 2,625 | $ | 16 | ||||||||||||||||||||||
U.S. Government agencies | — | — | 340 | 3 | 340 | 3 | ||||||||||||||||||||||||||||
State and political subdivisions | 5 | 1 | — | — | 5 | 1 | ||||||||||||||||||||||||||||
Agency RMBS | 551 | 3 | 3,808 | 41 | 4,359 | 44 | ||||||||||||||||||||||||||||
Non-agency RMBS | 40 | — | 33 | 2 | 73 | 2 | ||||||||||||||||||||||||||||
Other RMBS | — | — | 219 | 8 | 219 | 8 | ||||||||||||||||||||||||||||
Total securities held-to-maturity | $ | 1,662 | $ | 10 | $ | 5,959 | $ | 64 | $ | 7,621 | $ | 74 | ||||||||||||||||||||||
Total temporarily impaired securities | $ | 17,297 | $ | 71 | $ | 14,046 | $ | 462 | $ | 31,343 | $ | 533 | ||||||||||||||||||||||
(a) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | |||||||||||||||||||||||||||||||||
(b) | Includes gross unrealized losses for 12 months or more of $282 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||||||||||||||||||||||||||||||||
The following table shows the maturity distribution by carrying amount and yield (on a tax equivalent basis) of our investment securities portfolio at March 31, 2015. | ||||||||||||||||||||||||||||||||||
Maturity distribution and yield on investment securities at | U.S. | U.S. | State and | Other bonds, | Mortgage/ | |||||||||||||||||||||||||||||
31-Mar-15 | Treasury | Government | political | notes and | asset-backed and | |||||||||||||||||||||||||||||
agencies | subdivisions | debentures | equity | |||||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||
(dollars in millions) | Amount | Yield (a) | Amount | Yield (a) | Amount | Yield (a) | Amount | Yield (a) | Amount | Yield (a) | Total | |||||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||||||||||||||||
One year or less | $ | 1,759 | 0.95 | % | $ | 126 | 1.86 | % | $ | 462 | 1.4 | % | $ | 7,208 | 0.58 | % | $ | — | — | % | $ | 9,555 | ||||||||||||
Over 1 through 5 years | 10,914 | 0.89 | 259 | 1.66 | 2,938 | 2.26 | 11,783 | 1.03 | — | — | 25,894 | |||||||||||||||||||||||
Over 5 through 10 years | 2,223 | 2.52 | — | — | 1,506 | 3.8 | 2,608 | 2.19 | — | — | 6,337 | |||||||||||||||||||||||
Over 10 years | 3,690 | 3.11 | — | — | 233 | 1.81 | 265 | 1.45 | — | — | 4,188 | |||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | — | — | — | — | 35,263 | 2.69 | 35,263 | |||||||||||||||||||||||
Asset-backed securities | — | — | — | — | — | — | — | — | 5,658 | 1.07 | 5,658 | |||||||||||||||||||||||
Equity securities (b) | — | — | — | — | — | — | — | — | 822 | — | 822 | |||||||||||||||||||||||
Total | $ | 18,586 | 1.53 | % | $ | 385 | 1.73 | % | $ | 5,139 | 2.62 | % | $ | 21,864 | 1.02 | % | $ | 41,743 | 2.42 | % | $ | 87,717 | ||||||||||||
Securities held-to-maturity: | ||||||||||||||||||||||||||||||||||
One year or less | $ | 150 | 0.28 | % | $ | — | — | % | $ | — | — | % | $ | 1,461 | 0.24 | % | $ | — | — | % | $ | 1,611 | ||||||||||||
Over 1 through 5 years | 7,760 | 1.07 | 968 | 1.05 | 1 | 7.32 | 1,323 | 0.58 | — | — | 10,052 | |||||||||||||||||||||||
Over 5 through 10 years | 2,462 | 2.06 | 200 | 1.19 | 5 | 6.95 | 505 | 0.88 | — | — | 3,172 | |||||||||||||||||||||||
Over 10 years | — | — | — | — | 15 | 3.77 | — | — | — | — | 15 | |||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | — | — | — | — | 26,387 | 2.65 | 26,387 | |||||||||||||||||||||||
Total | $ | 10,372 | 1.3 | % | $ | 1,168 | 1.07 | % | $ | 21 | 4.74 | % | $ | 3,289 | 0.48 | % | $ | 26,387 | 2.65 | % | $ | 41,237 | ||||||||||||
(a) | Yields are based upon the amortized cost of securities. | |||||||||||||||||||||||||||||||||
(b) | Includes money market funds. | |||||||||||||||||||||||||||||||||
Other-than-temporary impairment | ||||||||||||||||||||||||||||||||||
We routinely conduct periodic reviews of all securities using economic models to identify and evaluate each investment security to determine whether OTTI has occurred. Various inputs to the economic models are used to determine if an unrealized loss on securities is other-than-temporary. For example, the most significant inputs related to non-agency RMBS are: | ||||||||||||||||||||||||||||||||||
• | Default rate - the number of mortgage loans expected to go into default over the life of the transaction, which is driven by the roll rate of loans in each performance bucket that will ultimately migrate to default; and | |||||||||||||||||||||||||||||||||
• | Severity - the loss expected to be realized when a loan defaults. | |||||||||||||||||||||||||||||||||
To determine if an unrealized loss is other-than-temporary, we project total estimated defaults of the underlying assets (mortgages) and multiply that calculated amount by an estimate of realizable value upon sale of these assets in the marketplace (severity) in order to determine the projected collateral loss. In determining estimated default rate and severity assumptions, we review the performance of the underlying securities, industry studies, market forecasts, as well as our view of the economic outlook affecting collateral. We also evaluate the current credit enhancement underlying the bond to determine the impact on cash flows. If we determine that a given security will be subject to a write-down or loss, we record the expected credit loss as a charge to earnings. | ||||||||||||||||||||||||||||||||||
The table below shows the projected weighted-average default rates and loss severities for the 2007, 2006 and late 2005 non-agency RMBS and the securities previously held in the Grantor Trust that we established in connection with the restructuring of our investment securities portfolio in 2009, at March 31, 2015 and Dec. 31, 2014. | ||||||||||||||||||||||||||||||||||
Projected weighted-average default rates and loss severities | ||||||||||||||||||||||||||||||||||
31-Mar-15 | Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Default rate | Severity | Default rate | Severity | |||||||||||||||||||||||||||||||
Alt-A | 38 | % | 58 | % | 38 | % | 58 | % | ||||||||||||||||||||||||||
Subprime | 54 | % | 73 | % | 55 | % | 74 | % | ||||||||||||||||||||||||||
Prime | 24 | % | 41 | % | 23 | % | 42 | % | ||||||||||||||||||||||||||
The following table provides net pre-tax securities gains (losses) by type. | ||||||||||||||||||||||||||||||||||
Net securities gains (losses) | ||||||||||||||||||||||||||||||||||
(in millions) | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||||||||
U.S. Treasury | $ | 23 | $ | 13 | $ | 10 | ||||||||||||||||||||||||||||
Non-agency RMBS | (1 | ) | 17 | (2 | ) | |||||||||||||||||||||||||||||
Other | 2 | 1 | 14 | |||||||||||||||||||||||||||||||
Total net securities gains | $ | 24 | $ | 31 | $ | 22 | ||||||||||||||||||||||||||||
The following table reflects investment securities credit losses recorded in earnings. The beginning balance represents the credit loss component for which OTTI occurred on debt securities in prior periods. The additions represent the first time a debt security was credit impaired or when subsequent credit impairments have occurred. The deductions represent credit losses on securities that have been sold, are required to be sold, or for which it is our intention to sell. | ||||||||||||||||||||||||||||||||||
Debt securities credit loss roll forward | ||||||||||||||||||||||||||||||||||
(in millions) | 1Q15 | 1Q14 | ||||||||||||||||||||||||||||||||
Beginning balance as of Jan. 1 | $ | 93 | $ | 119 | ||||||||||||||||||||||||||||||
Add: Initial OTTI credit losses | — | 2 | ||||||||||||||||||||||||||||||||
Subsequent OTTI credit losses | 1 | 3 | ||||||||||||||||||||||||||||||||
Less: Realized losses for securities sold | 2 | 18 | ||||||||||||||||||||||||||||||||
Ending balance as of March 31 | $ | 92 | $ | 106 | ||||||||||||||||||||||||||||||
Pledged assets | ||||||||||||||||||||||||||||||||||
At March 31, 2015, BNY Mellon had pledged assets of $104 billion, including $86 billion pledged as collateral for potential borrowings at the Federal Reserve Discount Window. The components of the assets pledged at March 31, 2015 included $92 billion of securities, $6 billion of loans, $3 billion of trading assets and $3 billion of interest-bearing deposits with banks. | ||||||||||||||||||||||||||||||||||
If there has been no borrowing at the Federal Reserve Discount Window, the Federal Reserve generally allows banks to freely move assets in and out of their pledged assets account to sell or repledge the assets for other purposes. BNY Mellon regularly moves assets in and out of its pledged asset account at the Federal Reserve. | ||||||||||||||||||||||||||||||||||
At Dec. 31, 2014, BNY Mellon had pledged assets of $99 billion, including $74 billion pledged as collateral for potential borrowing at the Federal Reserve Discount Window. The components of the assets pledged at Dec. 31, 2014 included $90 billion of securities, $6 billion of loans, $2 billion of trading assets and $1 billion of interest-bearing deposits with banks. | ||||||||||||||||||||||||||||||||||
At March 31, 2015 and Dec. 31, 2014, pledged assets included $8 billion and $9 billion, respectively, for which the recipients were permitted to sell or repledge the assets delivered. | ||||||||||||||||||||||||||||||||||
We also obtain securities as collateral including receipts under resale agreements, securities borrowed, derivative contracts and custody agreements on terms which permit us to sell or repledge the securities to others. At March 31, 2015 and Dec. 31, 2014, the market value of the securities received that can be sold or repledged was $57 billion and $47 billion, respectively. We routinely sell or repledge these securities through delivery to third parties. As of March 31, 2015 and Dec. 31, 2014, the market value of securities collateral sold or repledged was $19 billion and $19 billion, respectively. |
Loans_and_Asset_Quality
Loans and Asset Quality | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||
Loans and asset quality | Loans and asset quality | ||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||
The table below provides the details of our loan portfolio and industry concentrations of credit risk at March 31, 2015 and Dec. 31, 2014. | |||||||||||||||||||||||||||||||||
Loans | March 31, | Dec. 31, 2014 | |||||||||||||||||||||||||||||||
(in millions) | 2015 | ||||||||||||||||||||||||||||||||
Domestic: | |||||||||||||||||||||||||||||||||
Financial institutions | $ | 5,665 | $ | 5,603 | |||||||||||||||||||||||||||||
Commercial | 1,686 | 1,390 | |||||||||||||||||||||||||||||||
Wealth management loans and mortgages | 11,547 | 11,095 | |||||||||||||||||||||||||||||||
Commercial real estate | 3,021 | 2,524 | |||||||||||||||||||||||||||||||
Lease financings | 1,197 | 1,282 | |||||||||||||||||||||||||||||||
Other residential mortgages | 1,181 | 1,222 | |||||||||||||||||||||||||||||||
Overdrafts | 1,513 | 1,348 | |||||||||||||||||||||||||||||||
Other | 1,107 | 1,113 | |||||||||||||||||||||||||||||||
Margin loans | 19,459 | 20,034 | |||||||||||||||||||||||||||||||
Total domestic | 46,376 | 45,611 | |||||||||||||||||||||||||||||||
Foreign: | |||||||||||||||||||||||||||||||||
Financial institutions | 9,002 | 7,716 | |||||||||||||||||||||||||||||||
Commercial | 285 | 252 | |||||||||||||||||||||||||||||||
Wealth management loans and mortgages | 102 | 89 | |||||||||||||||||||||||||||||||
Commercial real estate | 41 | 6 | |||||||||||||||||||||||||||||||
Lease financings | 893 | 889 | |||||||||||||||||||||||||||||||
Other (primarily overdrafts) | 5,520 | 4,569 | |||||||||||||||||||||||||||||||
Margin loans | 107 | — | |||||||||||||||||||||||||||||||
Total foreign | 15,950 | 13,521 | |||||||||||||||||||||||||||||||
Total loans (a) | $ | 62,326 | $ | 59,132 | |||||||||||||||||||||||||||||
(a) | Net of unearned income of $843 million at March 31, 2015 and $866 million at Dec. 31, 2014 primarily on domestic and foreign lease financings. | ||||||||||||||||||||||||||||||||
Our loan portfolio consists of three portfolio segments: commercial, lease financings and mortgages. We manage our portfolio at the class level which consists of six classes of financing receivables: commercial, commercial real estate, financial institutions, lease financings, wealth management loans and mortgages and other residential mortgages. The following tables are presented for each class of financing receivable, and provide additional information about our credit risks and the adequacy of our allowance for credit losses. | |||||||||||||||||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||||||||||||
Transactions in the allowance for credit losses are summarized as follows: | |||||||||||||||||||||||||||||||||
Allowance for credit losses activity for the quarter ended March 31, 2015 | Wealth management loans and mortgages | Other residential mortgages | |||||||||||||||||||||||||||||||
(in millions) | Commercial | Commercial | Financial | Lease | All | Foreign | Total | ||||||||||||||||||||||||||
real estate | institutions | financings | Other | ||||||||||||||||||||||||||||||
Beginning balance | $ | 60 | $ | 50 | $ | 31 | $ | 32 | $ | 22 | $ | 41 | $ | — | $ | 44 | $ | 280 | |||||||||||||||
Charge-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Recoveries | — | — | — | — | — | 1 | — | — | 1 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | — | — | — | — | — | 1 | — | — | 1 | ||||||||||||||||||||||||
Provision | 5 | 3 | 2 | (1 | ) | (1 | ) | (2 | ) | — | (4 | ) | 2 | ||||||||||||||||||||
Ending balance | $ | 65 | $ | 53 | $ | 33 | $ | 31 | $ | 21 | $ | 40 | $ | — | $ | 40 | $ | 283 | |||||||||||||||
Allowance for: | |||||||||||||||||||||||||||||||||
Loan losses | $ | 20 | $ | 31 | $ | 19 | $ | 31 | $ | 16 | $ | 40 | $ | — | $ | 33 | $ | 190 | |||||||||||||||
Lending-related commitments | 45 | 22 | 14 | — | 5 | — | — | 7 | 93 | ||||||||||||||||||||||||
Individually evaluated for impairment: | |||||||||||||||||||||||||||||||||
Loan balance | $ | — | $ | — | $ | — | $ | — | $ | 8 | $ | — | $ | — | $ | — | $ | 8 | |||||||||||||||
Allowance for loan losses | — | — | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||
Collectively evaluated for impairment: | |||||||||||||||||||||||||||||||||
Loan balance | $ | 1,686 | $ | 2,881 | $ | 5,665 | $ | 1,197 | $ | 11,539 | $ | 1,181 | $ | 22,079 | (a) | $ | 15,950 | $ | 62,178 | ||||||||||||||
Allowance for loan losses | 20 | 31 | 19 | 31 | 15 | 40 | — | 33 | 189 | ||||||||||||||||||||||||
(a) | Includes $1,513 million of domestic overdrafts, $19,459 million of margin loans and $1,107 million of other loans at March 31, 2015. | ||||||||||||||||||||||||||||||||
Allowance for credit losses activity for the quarter ended Dec. 31, 2014 | Wealth management loans and mortgages | Other residential mortgages | |||||||||||||||||||||||||||||||
(in millions) | Commercial | Commercial | Financial | Lease | All | Foreign | Total | ||||||||||||||||||||||||||
real estate | institutions | financings | Other | ||||||||||||||||||||||||||||||
Beginning balance | $ | 71 | $ | 47 | $ | 25 | $ | 34 | $ | 22 | $ | 48 | $ | — | $ | 41 | $ | 288 | |||||||||||||||
Charge-offs | (8 | ) | (2 | ) | — | — | (1 | ) | — | — | — | (11 | ) | ||||||||||||||||||||
Recoveries | — | — | 1 | — | 1 | — | — | — | 2 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | (8 | ) | (2 | ) | 1 | — | — | — | — | — | (9 | ) | |||||||||||||||||||||
Provision | (3 | ) | 5 | 5 | (2 | ) | — | (7 | ) | — | 3 | 1 | |||||||||||||||||||||
Ending balance | $ | 60 | $ | 50 | $ | 31 | $ | 32 | $ | 22 | $ | 41 | $ | — | $ | 44 | $ | 280 | |||||||||||||||
Allowance for: | |||||||||||||||||||||||||||||||||
Loan losses | $ | 17 | $ | 32 | $ | 17 | $ | 32 | $ | 17 | $ | 41 | $ | — | $ | 35 | $ | 191 | |||||||||||||||
Lending-related commitments | 43 | 18 | 14 | — | 5 | — | — | 9 | 89 | ||||||||||||||||||||||||
Individually evaluated for impairment: | |||||||||||||||||||||||||||||||||
Loan balance | $ | — | $ | — | $ | — | $ | — | $ | 8 | $ | — | $ | — | $ | — | $ | 8 | |||||||||||||||
Allowance for loan losses | — | — | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||
Collectively evaluated for impairment: | |||||||||||||||||||||||||||||||||
Loan balance | $ | 1,390 | $ | 2,503 | $ | 5,603 | $ | 1,282 | $ | 11,087 | $ | 1,222 | $ | 22,495 | (a) | $ | 13,521 | $ | 59,103 | ||||||||||||||
Allowance for loan losses | 17 | 32 | 17 | 32 | 16 | 41 | — | 35 | 190 | ||||||||||||||||||||||||
(a) | Includes $1,348 million of domestic overdrafts, $20,034 million of margin loans and $1,113 million of other loans at Dec. 31, 2014. | ||||||||||||||||||||||||||||||||
Allowance for credit losses activity for the quarter ended March 31, 2014 | Wealth management loans and mortgages | Other | All | Foreign | Total | ||||||||||||||||||||||||||||
residential | Other | ||||||||||||||||||||||||||||||||
(in millions) | Commercial | Commercial | Financial | Lease | mortgages | ||||||||||||||||||||||||||||
real estate | institutions | financings | |||||||||||||||||||||||||||||||
Beginning balance | $ | 83 | $ | 41 | $ | 49 | $ | 37 | $ | 24 | $ | 54 | $ | — | $ | 56 | $ | 344 | |||||||||||||||
Charge-offs | — | — | — | — | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||||||||
Recoveries | — | — | — | — | — | 1 | — | — | 1 | ||||||||||||||||||||||||
Net (charge-offs) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Provision | (4 | ) | 1 | (1 | ) | (2 | ) | (1 | ) | (4 | ) | — | (7 | ) | (18 | ) | |||||||||||||||||
Ending balance | $ | 79 | $ | 42 | $ | 48 | $ | 35 | $ | 23 | $ | 50 | $ | — | $ | 49 | $ | 326 | |||||||||||||||
Allowance for: | |||||||||||||||||||||||||||||||||
Loan losses | $ | 20 | $ | 23 | $ | 9 | $ | 35 | $ | 18 | $ | 50 | $ | — | $ | 43 | $ | 198 | |||||||||||||||
Lending-related commitments | 59 | 19 | 39 | — | 5 | — | — | 6 | 128 | ||||||||||||||||||||||||
Individually evaluated for impairment: | |||||||||||||||||||||||||||||||||
Loan balance | $ | 13 | $ | 3 | $ | — | $ | — | $ | 10 | $ | — | $ | — | $ | 7 | $ | 33 | |||||||||||||||
Allowance for loan losses | 3 | 1 | — | — | 2 | — | — | 2 | 8 | ||||||||||||||||||||||||
Collectively evaluated for impairment: | |||||||||||||||||||||||||||||||||
Loan balance | $ | 1,741 | $ | 2,125 | $ | 4,492 | $ | 1,308 | $ | 9,912 | $ | 1,346 | $ | 18,296 | (a) | $ | 14,783 | $ | 54,003 | ||||||||||||||
Allowance for loan losses | 17 | 22 | 9 | 35 | 16 | 50 | — | 41 | 190 | ||||||||||||||||||||||||
(a) | Includes $1,078 million of domestic overdrafts, $16,430 million of margin loans and $788 million of other loans at March 31, 2014. | ||||||||||||||||||||||||||||||||
Nonperforming assets | |||||||||||||||||||||||||||||||||
The table below presents the distribution of our nonperforming assets. | |||||||||||||||||||||||||||||||||
Nonperforming assets | March 31, 2015 | Dec. 31, 2014 | |||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||
Nonperforming loans: | |||||||||||||||||||||||||||||||||
Domestic: | |||||||||||||||||||||||||||||||||
Other residential mortgages | $ | 111 | $ | 112 | |||||||||||||||||||||||||||||
Wealth management loans and mortgages | 12 | 12 | |||||||||||||||||||||||||||||||
Commercial real estate | 1 | 1 | |||||||||||||||||||||||||||||||
Total nonperforming loans | 124 | 125 | |||||||||||||||||||||||||||||||
Other assets owned | 4 | 3 | |||||||||||||||||||||||||||||||
Total nonperforming assets (a) | $ | 128 | $ | 128 | |||||||||||||||||||||||||||||
(a) | Loans of consolidated investment management funds are not part of BNY Mellon’s loan portfolio. Included in the loans of consolidated investment management funds are nonperforming loans of $73 million at March 31, 2015 and $53 million at Dec. 31, 2014. These loans are recorded at fair value and therefore do not impact the provision for credit losses and allowance for loan losses, and accordingly are excluded from the nonperforming assets table above. | ||||||||||||||||||||||||||||||||
At March 31, 2015, undrawn commitments to borrowers whose loans were classified as nonaccrual or reduced rate were not material. | |||||||||||||||||||||||||||||||||
Lost interest | |||||||||||||||||||||||||||||||||
Lost interest | |||||||||||||||||||||||||||||||||
(in millions) | 1Q15 | 4Q14 | 1Q14 | ||||||||||||||||||||||||||||||
Amount by which interest income recognized on nonperforming loans exceeded reversals | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Amount by which interest income would have increased if nonperforming loans at period-end had been performing for the entire period | $ | 2 | $ | 2 | $ | 2 | |||||||||||||||||||||||||||
Impaired loans | |||||||||||||||||||||||||||||||||
The tables below provide information about our impaired loans. We use the discounted cash flow method as the primary method for valuing impaired loans. | |||||||||||||||||||||||||||||||||
Impaired loans | Quarter ended | ||||||||||||||||||||||||||||||||
March 31, 2015 | Dec. 31, 2014 | March 31, 2014 | |||||||||||||||||||||||||||||||
(in millions) | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||||||||||
recorded | income | recorded | income | recorded | income | ||||||||||||||||||||||||||||
investment | recognized | investment | recognized | investment | recognized | ||||||||||||||||||||||||||||
Impaired loans with an allowance: | |||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 6 | $ | — | $ | 14 | $ | — | |||||||||||||||||||||
Commercial real estate | — | — | 1 | — | 3 | — | |||||||||||||||||||||||||||
Financial institutions | — | — | — | — | — | — | |||||||||||||||||||||||||||
Wealth management loans and mortgages | 6 | — | 7 | — | 9 | — | |||||||||||||||||||||||||||
Foreign | — | — | — | — | 6 | — | |||||||||||||||||||||||||||
Total impaired loans with an allowance | 6 | — | 14 | — | 32 | — | |||||||||||||||||||||||||||
Impaired loans without an allowance: | |||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||||||||||||
Commercial real estate | — | — | 1 | — | 1 | — | |||||||||||||||||||||||||||
Financial institutions | — | — | — | — | — | — | |||||||||||||||||||||||||||
Wealth management loans and mortgages | 2 | — | 2 | — | 2 | — | |||||||||||||||||||||||||||
Total impaired loans without an allowance (a) | 2 | — | 3 | — | 3 | — | |||||||||||||||||||||||||||
Total impaired loans | $ | 8 | $ | — | $ | 17 | $ | — | $ | 35 | $ | — | |||||||||||||||||||||
(a) | When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans. | ||||||||||||||||||||||||||||||||
Impaired loans | March 31, 2015 | Dec. 31, 2014 | |||||||||||||||||||||||||||||||
(in millions) | Recorded | Unpaid | Related | Recorded | Unpaid | Related | |||||||||||||||||||||||||||
investment | principal | allowance (a) | investment | principal | allowance (a) | ||||||||||||||||||||||||||||
balance | balance | ||||||||||||||||||||||||||||||||
Impaired loans with an allowance: | |||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Commercial real estate | — | 3 | — | — | — | — | |||||||||||||||||||||||||||
Financial institutions | — | — | — | — | — | — | |||||||||||||||||||||||||||
Wealth management loans and mortgages | 6 | 6 | 1 | 6 | 6 | 1 | |||||||||||||||||||||||||||
Foreign | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total impaired loans with an allowance | 6 | 9 | 1 | 6 | 6 | 1 | |||||||||||||||||||||||||||
Impaired loans without an allowance: | |||||||||||||||||||||||||||||||||
Commercial real estate | — | — | N/A | 1 | 3 | N/A | |||||||||||||||||||||||||||
Wealth management loans and mortgages | 2 | 2 | N/A | 2 | 2 | N/A | |||||||||||||||||||||||||||
Total impaired loans without an allowance (b) | 2 | 2 | N/A | 3 | 5 | N/A | |||||||||||||||||||||||||||
Total impaired loans (c) | $ | 8 | $ | 11 | $ | 1 | $ | 9 | $ | 11 | $ | 1 | |||||||||||||||||||||
(a) | The allowance for impaired loans is included in the allowance for loan losses. | ||||||||||||||||||||||||||||||||
(b) | When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans. | ||||||||||||||||||||||||||||||||
(c) | Excludes an aggregate of less than $1 million of impaired loans in amounts individually less than $1 million at both March 31, 2015 and Dec. 31, 2014. The allowance for loan loss associated with these loans totaled less than $1 million at both March 31, 2015 and Dec. 31, 2014. | ||||||||||||||||||||||||||||||||
Past due loans | |||||||||||||||||||||||||||||||||
The table below sets forth information about our past due loans. | |||||||||||||||||||||||||||||||||
Past due loans and still accruing interest | March 31, 2015 | Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Days past due | Total | Days past due | Total | ||||||||||||||||||||||||||||||
(in millions) | 30-59 | 60-89 | >90 | past due | 30-59 | 60-89 | >90 | past due | |||||||||||||||||||||||||
Domestic: | |||||||||||||||||||||||||||||||||
Financial institutions | $ | 6 | $ | — | $ | — | $ | 6 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Wealth management loans and mortgages | 48 | — | — | 48 | 45 | — | 1 | 46 | |||||||||||||||||||||||||
Commercial real estate | 43 | — | — | 43 | 79 | — | — | 79 | |||||||||||||||||||||||||
Other residential mortgages | 20 | 5 | 4 | 29 | 23 | 3 | 5 | 31 | |||||||||||||||||||||||||
Total domestic | 117 | 5 | 4 | 126 | 147 | 3 | 6 | 156 | |||||||||||||||||||||||||
Foreign: | |||||||||||||||||||||||||||||||||
Financial institutions (a) | 30 | 20 | — | 50 | — | — | — | — | |||||||||||||||||||||||||
Total past due loans | $ | 147 | $ | 25 | $ | 4 | $ | 176 | $ | 147 | $ | 3 | $ | 6 | $ | 156 | |||||||||||||||||
(a) | Substantially all of these past due loans have been repaid subsequent to March 31, 2015. | ||||||||||||||||||||||||||||||||
Troubled debt restructurings (“TDRs”) | |||||||||||||||||||||||||||||||||
A modified loan is considered a TDR if the debtor is experiencing financial difficulties and the creditor grants a concession to the debtor that would not otherwise be considered. A TDR may include a transfer of real estate or other assets from the debtor to the creditor, or a modification of the term of the loan. Not all modified loans are considered TDRs. | |||||||||||||||||||||||||||||||||
The following table presents TDRs that occurred in the first quarter of 2015, fourth quarter of 2014 and first quarter of 2014. | |||||||||||||||||||||||||||||||||
TDRs | 1Q15 | 4Q14 | 1Q14 | ||||||||||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | |||||||||||||||||||||||||||||||
recorded investment | recorded investment | recorded investment | |||||||||||||||||||||||||||||||
(dollars in millions) | Number of | Pre-modification | Post-modification | Number of contracts | Pre-modification | Post-modification | Number of contracts | Pre-modification | Post-modification | ||||||||||||||||||||||||
contracts | |||||||||||||||||||||||||||||||||
Other residential mortgages | 19 | $ | 4 | $ | 4 | 22 | $ | 3 | $ | 4 | 31 | $ | 5 | $ | 5 | ||||||||||||||||||
Foreign | — | — | — | — | — | — | 1 | 5 | 4 | ||||||||||||||||||||||||
Total TDRs | 19 | $ | 4 | $ | 4 | 22 | $ | 3 | $ | 4 | 32 | $ | 10 | $ | 9 | ||||||||||||||||||
Other residential mortgages | |||||||||||||||||||||||||||||||||
The modifications of the other residential mortgage loans in the first quarter of 2015, fourth quarter of 2014 and first quarter of 2014 consisted of reducing the stated interest rates and in certain cases, a forbearance of default and extending the maturity dates. The modified loans are primarily collateral dependent for which the value is based on the fair value of the collateral. | |||||||||||||||||||||||||||||||||
TDRs that subsequently defaulted | |||||||||||||||||||||||||||||||||
There were no residential mortgage loans that had been restructured in a TDR during the previous 12 months and have subsequently defaulted in the first quarter of 2015. | |||||||||||||||||||||||||||||||||
Credit quality indicators | |||||||||||||||||||||||||||||||||
Our credit strategy is to focus on investment grade names to support cross-selling opportunities and avoid single name/industry concentrations. Each customer is assigned an internal credit rating which is mapped to an external rating agency grade equivalent, if possible, based upon a number of dimensions which are continually evaluated and may change over time. | |||||||||||||||||||||||||||||||||
The following tables set forth information about credit quality indicators. | |||||||||||||||||||||||||||||||||
Commercial loan portfolio | |||||||||||||||||||||||||||||||||
Commercial loan portfolio – Credit risk profile by creditworthiness category | |||||||||||||||||||||||||||||||||
Commercial | Commercial real estate | Financial institutions | |||||||||||||||||||||||||||||||
(in millions) | March 31, | Dec. 31, 2014 | March 31, | Dec. 31, 2014 | March 31, | Dec. 31, 2014 | |||||||||||||||||||||||||||
2015 | 2015 | 2015 | |||||||||||||||||||||||||||||||
Investment grade | $ | 1,711 | $ | 1,381 | $ | 2,082 | $ | 1,641 | $ | 12,753 | $ | 11,576 | |||||||||||||||||||||
Non-investment grade | 260 | 261 | 980 | 889 | 1,914 | 1,743 | |||||||||||||||||||||||||||
Total | $ | 1,971 | $ | 1,642 | $ | 3,062 | $ | 2,530 | $ | 14,667 | $ | 13,319 | |||||||||||||||||||||
The commercial loan portfolio is divided into investment grade and non-investment grade categories based on rating criteria largely consistent with those of the public rating agencies. Each customer in the portfolio is assigned an internal credit rating. These internal credit ratings are generally consistent with the ratings categories of the public rating agencies. Customers with ratings consistent with BBB- (S&P)/Baa3 (Moody’s) or better are considered to be investment grade. Those clients with ratings lower than this threshold are considered to be non-investment grade. | |||||||||||||||||||||||||||||||||
Wealth management loans and mortgages | |||||||||||||||||||||||||||||||||
Wealth management loans and mortgages – Credit risk | |||||||||||||||||||||||||||||||||
profile by internally assigned grade | |||||||||||||||||||||||||||||||||
(in millions) | March 31, | Dec. 31, 2014 | |||||||||||||||||||||||||||||||
2015 | |||||||||||||||||||||||||||||||||
Wealth management loans: | |||||||||||||||||||||||||||||||||
Investment grade | $ | 5,848 | $ | 5,621 | |||||||||||||||||||||||||||||
Non-investment grade | 88 | 29 | |||||||||||||||||||||||||||||||
Wealth management mortgages | 5,713 | 5,534 | |||||||||||||||||||||||||||||||
Total | $ | 11,649 | $ | 11,184 | |||||||||||||||||||||||||||||
Wealth management non-mortgage loans are not typically rated by external rating agencies. A majority of the wealth management loans are secured by the customers’ investment management accounts or custody accounts. Eligible assets pledged for these loans are typically investment grade, fixed-income securities, equities and/or mutual funds. Internal ratings for this portion of the wealth management portfolio, therefore, would equate to investment grade external ratings. Wealth management loans are provided to select customers based on the pledge of other types of assets, including business assets, fixed assets or a modest amount of commercial real estate. For the loans collateralized by other assets, the credit quality of the obligor is carefully analyzed, but we do not consider this portfolio of loans to be investment grade. | |||||||||||||||||||||||||||||||||
Credit quality indicators for wealth management mortgages are not correlated to external ratings. Wealth management mortgages are typically loans to high-net-worth individuals, which are secured primarily by residential property. These loans are primarily interest-only adjustable rate mortgages with a weighted-average loan-to-value ratio of 60% at origination. In the wealth management portfolio, less than 1% of the mortgages were past due at March 31, 2015. | |||||||||||||||||||||||||||||||||
At March 31, 2015, the wealth management mortgage portfolio consisted of the following geographic concentrations: California - 21%; New York - 20%; Massachusetts - 15%; Florida - 8%; and other - 36%. | |||||||||||||||||||||||||||||||||
Other residential mortgages | |||||||||||||||||||||||||||||||||
The other residential mortgage portfolio primarily consists of 1-4 family residential mortgage loans and totaled $1,181 million at March 31, 2015 and $1,222 million at Dec. 31, 2014. These loans are not typically correlated to external ratings. Included in this portfolio at March 31, 2015 are $337 million of mortgage loans purchased in 2005, 2006 and the first quarter of 2007 that are predominantly prime mortgage loans, with a small portion of Alt-A loans. As of March 31, 2015, the purchased loans in this portfolio had a weighted-average loan-to-value ratio of 76% at origination and 18% of the serviced loan balance was at least 60 days delinquent. The properties securing the prime and Alt-A mortgage loans were located (in order of concentration) in California, Florida, Virginia, the tri-state area (New York, New Jersey and Connecticut) and Maryland. | |||||||||||||||||||||||||||||||||
Overdrafts | |||||||||||||||||||||||||||||||||
Overdrafts primarily relate to custody and securities clearance clients and totaled $6,993 million at March 31, 2015 and $5,882 million at Dec. 31, 2014. Overdrafts occur on a daily basis in the custody and securities clearance business and are generally repaid within two business days. | |||||||||||||||||||||||||||||||||
Other loans | |||||||||||||||||||||||||||||||||
Other loans primarily includes loans to consumers that are fully collateralized with equities, mutual funds and fixed income securities. | |||||||||||||||||||||||||||||||||
Margin loans | |||||||||||||||||||||||||||||||||
We had $19,566 million of secured margin loans on our balance sheet at March 31, 2015 compared with $20,034 million at Dec. 31, 2014. Margin loans are collateralized with marketable securities and borrowers are required to maintain a daily collateral margin in excess of 100% of the value of the loan. We have rarely suffered a loss on these types of loans and do not allocate any of our allowance for credit losses to margin loans. | |||||||||||||||||||||||||||||||||
Reverse repurchase agreements | |||||||||||||||||||||||||||||||||
Reverse repurchase agreements are transactions fully collateralized with high-quality liquid securities. These transactions carry minimal credit risk and therefore are not allocated an allowance for credit losses. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets | Goodwill and intangible assets | |||||||||||||||
Impairment testing | ||||||||||||||||
Goodwill impairment testing is performed at least annually at the reporting unit level. Intangible assets not subject to amortization are tested annually for impairment or more often if events or circumstances indicate they may be impaired. | ||||||||||||||||
Goodwill | ||||||||||||||||
The tables below provide a breakdown of goodwill by business. | ||||||||||||||||
Goodwill by business | Investment | Investment | Other | Consolidated | ||||||||||||
(in millions) | Management | Services | ||||||||||||||
Balance at Dec. 31, 2014 | $ | 9,352 | $ | 8,467 | $ | 50 | $ | 17,869 | ||||||||
Acquisitions | 10 | — | — | 10 | ||||||||||||
Foreign currency translation | (109 | ) | (107 | ) | — | (216 | ) | |||||||||
Balance at March 31, 2015 | $ | 9,253 | $ | 8,360 | $ | 50 | $ | 17,663 | ||||||||
Goodwill by business | Investment | Investment | Other | Consolidated | ||||||||||||
(in millions) | Management | Services | ||||||||||||||
Balance at Dec. 31, 2013 | $ | 9,473 | $ | 8,550 | $ | 50 | $ | 18,073 | ||||||||
Foreign currency translation | 20 | 7 | — | 27 | ||||||||||||
Balance at March 31, 2014 | $ | 9,493 | $ | 8,557 | $ | 50 | $ | 18,100 | ||||||||
Intangible assets | ||||||||||||||||
The tables below provide a breakdown of intangible assets by business. | ||||||||||||||||
Intangible assets – net carrying amount by business | Investment | Investment | Other | Consolidated | ||||||||||||
(in millions) | Management | Services | ||||||||||||||
Balance at Dec. 31, 2014 | $ | 1,923 | $ | 1,355 | $ | 849 | $ | 4,127 | ||||||||
Acquisitions | 9 | — | — | 9 | ||||||||||||
Amortization | (25 | ) | (41 | ) | — | (66 | ) | |||||||||
Foreign currency translation | (16 | ) | (7 | ) | — | (23 | ) | |||||||||
Balance at March 31, 2015 | $ | 1,891 | $ | 1,307 | $ | 849 | $ | 4,047 | ||||||||
Intangible assets – net carrying amount by business | Investment | Investment | Other | Consolidated | ||||||||||||
(in millions) | Management | Services | ||||||||||||||
Balance at Dec. 31, 2013 | $ | 2,065 | $ | 1,538 | $ | 849 | $ | 4,452 | ||||||||
Amortization | (31 | ) | (44 | ) | — | (75 | ) | |||||||||
Foreign currency translation | 3 | — | — | 3 | ||||||||||||
Balance at March 31, 2014 | $ | 2,037 | $ | 1,494 | $ | 849 | $ | 4,380 | ||||||||
The table below provides a breakdown of intangible assets by type. | ||||||||||||||||
Intangible assets | 31-Mar-15 | Dec. 31, 2014 | ||||||||||||||
(in millions) | Gross | Accumulated | Net | Remaining | Net | |||||||||||
carrying | amortization | carrying | weighted- | carrying | ||||||||||||
amount | amount | average | amount | |||||||||||||
amortization | ||||||||||||||||
period | ||||||||||||||||
Subject to amortization: | ||||||||||||||||
Customer relationships—Investment Management | $ | 1,733 | $ | (1,292 | ) | $ | 441 | 11 years | $ | 464 | ||||||
Customer contracts—Investment Services | 2,314 | (1,386 | ) | 928 | 11 years | 974 | ||||||||||
Other | 75 | (63 | ) | 12 | 4 years | 14 | ||||||||||
Total subject to amortization | 4,122 | (2,741 | ) | 1,381 | 11 years | 1,452 | ||||||||||
Not subject to amortization: (a) | ||||||||||||||||
Trade name | 1,358 | N/A | 1,358 | N/A | 1,360 | |||||||||||
Customer relationships | 1,308 | N/A | 1,308 | N/A | 1,315 | |||||||||||
Total not subject to amortization | 2,666 | N/A | 2,666 | N/A | 2,675 | |||||||||||
Total intangible assets | $ | 6,788 | $ | (2,741 | ) | $ | 4,047 | N/A | $ | 4,127 | ||||||
(a) | Intangible assets not subject to amortization have an indefinite life. | |||||||||||||||
N/A - Not applicable. | ||||||||||||||||
Estimated annual amortization expense for current intangibles for the next five years is as follows: | ||||||||||||||||
For the year ended | Estimated amortization expense | |||||||||||||||
Dec. 31, | (in millions) | |||||||||||||||
2015 | $ | 266 | ||||||||||||||
2016 | 240 | |||||||||||||||
2017 | 216 | |||||||||||||||
2018 | 181 | |||||||||||||||
2019 | 108 | |||||||||||||||
Other_Assets
Other Assets | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Other Assets [Abstract] | ||||||||||||||||||||
Other Assets | Other assets | |||||||||||||||||||
Other assets | March 31, | Dec. 31, | ||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||
Corporate/bank owned life insurance | $ | 4,618 | $ | 4,598 | ||||||||||||||||
Accounts receivable | 4,534 | 4,166 | ||||||||||||||||||
Fails to deliver | 3,189 | 1,351 | ||||||||||||||||||
Equity in joint venture and other investments (a) | 3,170 | 3,287 | ||||||||||||||||||
Income taxes receivable | 1,552 | 2,142 | ||||||||||||||||||
Software | 1,332 | 1,332 | ||||||||||||||||||
Fair value of hedging derivatives | 1,038 | 851 | ||||||||||||||||||
Prepaid pension assets | 572 | 708 | ||||||||||||||||||
Prepaid expenses | 478 | 451 | ||||||||||||||||||
Due from customers on acceptances | 304 | 247 | ||||||||||||||||||
Other | 1,528 | 1,357 | ||||||||||||||||||
Total other assets | $ | 22,315 | $ | 20,490 | ||||||||||||||||
(a) | Includes Federal Reserve Bank stock of $448 million and $447 million, respectively, at cost. | |||||||||||||||||||
Certain seed capital and private equity investments valued using net asset value per share | ||||||||||||||||||||
In our Investment Management business, we manage investment assets, including equities, fixed income, money market and alternative investment funds for institutions and other investors. As part of that activity we make seed capital investments in certain funds. BNY Mellon also holds private equity investments, which consist of investments in private equity funds, mezzanine financings, small business investment companies (“SBICs”) and direct equity investments. Seed capital and private equity investments are included in other assets. Consistent with our policy to focus on our core activities, we continue to reduce our exposure to private equity investments that are not compliant with the Volcker Rule. | ||||||||||||||||||||
The fair value of certain of these investments has been estimated using the net asset value (“NAV”) per share of BNY Mellon’s ownership interest in the funds. The table below presents information about BNY Mellon’s investments in seed capital and private equity investments that have been valued using NAV. | ||||||||||||||||||||
Seed capital and private equity investments valued using NAV | ||||||||||||||||||||
31-Mar-15 | Dec. 31, 2014 | |||||||||||||||||||
(dollar amounts in millions) | Fair | Unfunded | Redemption | Redemption | Fair | Unfunded | Redemption | Redemption | ||||||||||||
value | commitments | frequency | notice period | value | commitments | frequency | notice period | |||||||||||||
Seed capital and other funds (a) | $ | 292 | $ | — | Daily-quarterly | 0-180 days | $ | 307 | $ | — | Daily-quarterly | 0-180 days | ||||||||
Private equity investments (b)(c) | 27 | 56 | N/A | N/A | 35 | 45 | N/A | N/A | ||||||||||||
Total | $ | 319 | $ | 56 | $ | 342 | $ | 45 | ||||||||||||
(a) | Other funds include various leveraged loans, hedge funds and structured credit funds. Redemption notice periods vary by fund. | |||||||||||||||||||
(b) | Private equity funds primarily include numerous venture capital funds that invest in various sectors of the economy. Private equity funds do not have redemption rights. Distributions from such funds will be received as the underlying investments in the funds are liquidated. | |||||||||||||||||||
(c) | Includes investments and unfunded commitments related to SBICs, which are compliant with the Volcker Rule, of $24 million and $56 million, respectively, at March 31, 2015 and $18 million and $45 million, respectively, at Dec. 31, 2014. | |||||||||||||||||||
N/A - Not applicable. | ||||||||||||||||||||
Qualified affordable housing project investments | ||||||||||||||||||||
We invest in affordable housing projects primarily to satisfy the company’s CRA requirements. Our total investment in qualified affordable housing projects totaled $828 million at March 31, 2015 and $853 million at Dec. 31, 2014. Commitments to fund future investments in qualified affordable housing projects totaled $339 million at March 31, 2015 and $358 million at Dec. 31, 2014. A summary of the commitments to fund future investments is as follows: 2015—$135 million; 2016—$110 million; 2017—$82 million; 2018—$2 million; 2019—$1 million and 2020 and thereafter—$9 million. | ||||||||||||||||||||
Tax credits and other tax benefits recognized were $33 million in the first quarter of 2015, $31 million in the first quarter of 2014 and $34 million in the fourth quarter of 2014. Amortization expense included in the provision for income taxes was $24 million in the first quarter of 2015, $24 million in the first quarter of 2014 and $26 million in the fourth quarter of 2014. |
Net_Interest_Revenue
Net Interest Revenue | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Interest Revenue (Expense), Net [Abstract] | ||||||||||
Net Interest Revenue | Net interest revenue | |||||||||
The following table provides the components of net interest revenue presented on the consolidated income statement. | ||||||||||
Net interest revenue | Quarter ended | |||||||||
(in millions) | March 31, 2015 | Dec. 31, 2014 | March 31, 2014 | |||||||
Interest revenue | ||||||||||
Non-margin loans | $ | 173 | $ | 178 | $ | 169 | ||||
Margin loans | 50 | 48 | 42 | |||||||
Securities: | ||||||||||
Taxable | 439 | 417 | 405 | |||||||
Exempt from federal income taxes | 22 | 22 | 27 | |||||||
Total securities | 461 | 439 | 432 | |||||||
Deposits with banks | 30 | 30 | 73 | |||||||
Deposits with the Federal Reserve and other central banks | 45 | 55 | 46 | |||||||
Federal funds sold and securities purchased under resale agreements | 30 | 26 | 17 | |||||||
Trading assets | 18 | 26 | 33 | |||||||
Total interest revenue | 807 | 802 | 812 | |||||||
Interest expense | ||||||||||
Deposits | 15 | 13 | 22 | |||||||
Federal funds purchased and securities sold under repurchase agreements | (3 | ) | (2 | ) | (4 | ) | ||||
Trading liabilities | 2 | 4 | 8 | |||||||
Other borrowed funds | 2 | 2 | 1 | |||||||
Commercial paper | — | 1 | — | |||||||
Customer payables | 2 | 3 | 2 | |||||||
Long-term debt | 61 | 69 | 55 | |||||||
Total interest expense | 79 | 90 | 84 | |||||||
Net interest revenue | $ | 728 | $ | 712 | $ | 728 | ||||
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||||||
Employee Benefit Plans | Employee benefit plans | |||||||||||||||||||
The components of net periodic benefit cost are as follows. | ||||||||||||||||||||
Net periodic benefit cost (credit) | Quarter ended | |||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||
(in millions) | Domestic pension benefits | Foreign pension benefits | Health care benefits | Domestic pension benefits | Foreign pension benefits | Health care benefits | ||||||||||||||
Service cost | $ | 15 | $ | 8 | $ | 1 | $ | 14 | $ | 9 | $ | 1 | ||||||||
Interest cost | 43 | 10 | 2 | 45 | 11 | 3 | ||||||||||||||
Expected return on assets | (83 | ) | (13 | ) | (2 | ) | (79 | ) | (15 | ) | (2 | ) | ||||||||
Curtailment (gain)/loss | (30 | ) | — | — | — | — | — | |||||||||||||
Other | 31 | 6 | — | 28 | 4 | — | ||||||||||||||
Net periodic benefit cost (credit) | $ | (24 | ) | $ | 11 | $ | 1 | $ | 8 | $ | 9 | $ | 2 | |||||||
Restructuring_Charges
Restructuring Charges | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Restructuring Charges [Abstract] | ||||||||||
Restructuring Charges | Restructuring charges | |||||||||
Aggregate restructuring charges are included in M&I, litigation and restructuring charges on the income statement. Restructuring charges recorded in 2014 relate to corporate-level initiatives and were therefore recorded in the Other segment. Severance payments are primarily paid over the salary continuance period in accordance with the separation plan. In the first quarter of 2015, we recorded total restructuring recoveries of $4 million primarily related to severance. | ||||||||||
Streamlining actions | ||||||||||
In the second quarter of 2014, we disclosed streamlining actions which included rationalizing our staff and simplifying and automating global processes primarily related to actions taken across investment services, technology, and operations. The initial restructuring charge consisted of $125 million of severance costs. In the first quarter of 2015, we recorded total restructuring recoveries of $2 million primarily related to severance. The following table presents the activity in the reserve through March 31, 2015. | ||||||||||
Streamlining actions 2014 – restructuring reserve activity | ||||||||||
(in millions) | Total | |||||||||
Original restructuring charge | $ | 125 | ||||||||
Net additional charges | 59 | |||||||||
Utilization | (92 | ) | ||||||||
Balance at Dec. 31, 2014 | $ | 92 | ||||||||
Net additional (recoveries) | (2 | ) | ||||||||
Utilization | (25 | ) | ||||||||
Balance at March 31, 2015 | $ | 65 | ||||||||
The table below presents the restructuring charge if it had been allocated by business. | ||||||||||
Streamlining actions 2014 – restructuring charge by business | Total charges since inception | |||||||||
(in millions) | 1Q15 | 4Q14 | ||||||||
Investment Management | $ | — | $ | 1 | $ | 23 | ||||
Investment Services | 2 | (16 | ) | 85 | ||||||
Other segment (including Business Partners) | (4 | ) | 21 | 74 | ||||||
Total restructuring charge (recovery) | $ | (2 | ) | $ | 6 | $ | 182 | |||
Operational Excellence Initiatives | ||||||||||
In 2011, we announced our Operational Excellence Initiatives which include an expense reduction initiative impacting approximately 1,500 positions, as well as additional initiatives to transform operations, technology and corporate services that will increase productivity and reduce the growth rate of expenses. We recorded a pre-tax restructuring charge of $107 million related to the Operational Excellence Initiatives in 2011. This charge consisted of $78 million of severance costs and $29 million primarily for operating lease-related items and consulting costs. In the first quarter of 2015, we recorded a recovery of $2 million. The following table presents the activity in the restructuring reserve related to the Operational Excellence Initiatives through March 31, 2015. | ||||||||||
Operational Excellence Initiatives 2011 – restructuring reserve activity | ||||||||||
(in millions) | Severance | Other | Total | |||||||
Original restructuring charge | $ | 78 | $ | 29 | $ | 107 | ||||
Net additional charges (net recovery/gain) | 93 | (57 | ) | 36 | ||||||
Utilization | (143 | ) | 28 | (115 | ) | |||||
Balance at Dec. 31, 2014 | 28 | — | 28 | |||||||
Net additional (recoveries) | (2 | ) | — | (2 | ) | |||||
Utilization | (4 | ) | — | (4 | ) | |||||
Balance at March 31, 2015 | $ | 22 | $ | — | $ | 22 | ||||
The table below presents the restructuring charge if it had been allocated by business. | ||||||||||
Operational Excellence Initiatives 2011 – restructuring charge (recovery) by business | Total charges since inception | |||||||||
(in millions) | 1Q15 | 4Q14 | ||||||||
Investment Management | $ | — | $ | 1 | $ | 51 | ||||
Investment Services | — | (2 | ) | 84 | ||||||
Other segment (including Business Partners) | (2 | ) | (5 | ) | 6 | |||||
Total restructuring charge (recovery) | $ | (2 | ) | $ | (6 | ) | $ | 141 | ||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes |
BNY Mellon recorded an income tax provision of $280 million (24.4% effective tax rate) in the first quarter of 2015 and $232 million (25.1% effective tax rate) in the first quarter of 2014. The effective tax rates primarily reflect the tax benefit from foreign operations, tax-exempt income and consolidated investment management funds. | |
Our total tax reserves as of March 31, 2015 were $673 million compared with $669 million at Dec. 31, 2014. If these tax reserves were unnecessary, $673 million would affect the effective tax rate in future periods. We recognize accrued interest and penalties, if applicable, related to income taxes in income tax expense. Included in the balance sheet at March 31, 2015 is accrued interest, where applicable, of $200 million. The additional tax expense related to interest for the three months ended March 31, 2015 was $1 million compared with $1 million for the three months ended March 31, 2014. | |
It is reasonably possible the total reserve for uncertain tax positions could decrease within the next 12 months by an amount up to $38 million as a result of adjustments related to tax years that are still subject to examination. | |
On Nov. 10, 2009, BNY Mellon filed a petition with the U.S. Tax Court challenging the IRS’s disallowance of certain foreign tax credits claimed for the 2001 and 2002 tax years. Trial was held from April 16 to May 17, 2012. On Feb. 11, 2013, BNY Mellon received an adverse decision from the U.S. Tax Court. On Sept. 23, 2013, the U.S. Tax Court amended its prior ruling to allow BNY Mellon an interest expense deduction and to exclude certain items from taxable income. The net impact of the court rulings for all years involved and related interest decreased after-tax income in 2013 by $593 million. | |
The U.S. Tax Court ruling was finalized on Feb. 20, 2014. On March 5, 2014, BNY Mellon appealed the decision to the Second Circuit Court of Appeals. On Sept. 25, 2014, the government filed its response to our appeal. In addition to requesting that the denial of foreign tax credits be upheld, the government also requested a reversal of the interest deduction allowed by the Tax Court in the amended decision. If the interest deduction is ultimately disallowed, further income tax expense of approximately $100 million may be required. See Note 17 of the Notes to Consolidated Financial Statements for additional information. | |
Our federal income tax returns are closed to examination through 2010. Our New York State and New York City income tax returns are closed to examination through 2010. Our UK income tax returns are closed to examination through 2012. |
Securitizations_and_Variable_I
Securitizations and Variable Interest Entities | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Securitizations And Variable Interest Entities Disclosure [Abstract] | |||||||||||
Securitizations and variable interest entities | Securitizations and variable interest entities | ||||||||||
BNY Mellon’s VIEs generally include certain retail, institutional and alternative investment funds offered to its retail and institutional customers in which it acts as the fund’s investment manager. BNY Mellon earns management fees on these funds as well as performance fees in certain funds. It may also provide start-up capital in its new funds. These VIEs are included in the scope of ASU 2010-10, which defers the application of ASU 2009-17 for certain investment funds, and are reviewed for consolidation based on the guidance in ASC 810, Consolidation. | |||||||||||
BNY Mellon has other VIEs, including securitization trusts and CLOs, in which BNY Mellon serves as the investment manager. In addition, we provide trust and custody services for a fee to entities sponsored by other corporations in which we have no other interest. These VIEs are evaluated under the guidance included in ASU 2009-17. BNY Mellon has one securitization and several CLOs, which were assessed and consolidated in accordance with ASU 2009-17. | |||||||||||
The following tables present the incremental assets and liabilities included in BNY Mellon’s consolidated financial statements, after applying intercompany eliminations, as of March 31, 2015 and Dec. 31, 2014, based on the assessments performed in accordance with ASC 810 and ASU 2009-17. The net assets of any consolidated VIE are solely available to settle the liabilities of the VIE and to settle any investors’ ownership liquidation requests, including any seed capital invested in the VIE by BNY Mellon. | |||||||||||
Investments consolidated under ASC 810 and ASU 2009-17 | |||||||||||
at March 31, 2015 | |||||||||||
(in millions) | Investment | Securitizations | Total | ||||||||
Management | consolidated | ||||||||||
funds | investments | ||||||||||
Available-for-sale securities | $ | — | $ | 400 | $ | 400 | |||||
Trading assets | 7,852 | — | 7,852 | ||||||||
Other assets | 573 | — | 573 | ||||||||
Total assets | $ | 8,425 | (a) | $ | 400 | $ | 8,825 | ||||
Trading liabilities | $ | 6,584 | $ | — | $ | 6,584 | |||||
Other liabilities | 36 | 355 | 391 | ||||||||
Total liabilities | $ | 6,620 | (a) | $ | 355 | $ | 6,975 | ||||
Nonredeemable noncontrolling interests | $ | 1,337 | (a) | $ | — | $ | 1,337 | ||||
(a) | Includes voting interest entities with assets of $809 million, liabilities of $142 million and nonredeemable noncontrolling interests of $479 million. | ||||||||||
Investments consolidated under ASC 810 and ASU 2009-17 | |||||||||||
at Dec. 31, 2014 | |||||||||||
(in millions) | Investment | Securitizations | Total | ||||||||
Management | consolidated | ||||||||||
funds | investments | ||||||||||
Available-for-sale securities | $ | — | $ | 414 | $ | 414 | |||||
Trading assets | 8,678 | — | 8,678 | ||||||||
Other assets | 604 | — | 604 | ||||||||
Total assets | $ | 9,282 | (a) | $ | 414 | $ | 9,696 | ||||
Trading liabilities | $ | 7,660 | $ | — | $ | 7,660 | |||||
Other liabilities | 9 | 363 | 372 | ||||||||
Total liabilities | $ | 7,669 | (a) | $ | 363 | $ | 8,032 | ||||
Nonredeemable noncontrolling interests | $ | 1,033 | (a) | $ | — | $ | 1,033 | ||||
(a) | Includes voting interest entities with assets of $855 million, liabilities of $148 million and nonredeemable noncontrolling interests of $544 million. | ||||||||||
BNY Mellon is not contractually required to provide financial or any other support to any of our VIEs. Additionally, creditors of any consolidated VIEs do not have any recourse to the general credit of BNY Mellon. | |||||||||||
Non-consolidated VIEs | |||||||||||
As of March 31, 2015 and Dec. 31, 2014, the following assets related to the VIEs where BNY Mellon is not the primary beneficiary are included in our consolidated financial statements. | |||||||||||
Non-consolidated VIEs at March 31, 2015 | |||||||||||
(in millions) | Assets | Liabilities | Maximum loss exposure | ||||||||
Other | $ | 119 | $ | — | $ | 119 | |||||
Non-consolidated VIEs at Dec. 31, 2014 | |||||||||||
(in millions) | Assets | Liabilities | Maximum loss exposure | ||||||||
Other | $ | 148 | $ | — | $ | 148 | |||||
The maximum loss exposure indicated in the above tables relates solely to BNY Mellon’s seed capital or residual interests invested in the VIEs. |
Preferred_Stock
Preferred Stock | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||
Preferred Stock | Preferred stock | ||||||||||||||||||
BNY Mellon has 100 million authorized shares of preferred stock with a par value of $0.01. The table below summarizes BNY Mellon’s preferred stock issued and outstanding at March 31, 2015 and Dec. 31, 2014. | |||||||||||||||||||
Preferred stock summary | Liquidation | Total shares issued and outstanding | |||||||||||||||||
preference | |||||||||||||||||||
per share | Carrying value (a) | ||||||||||||||||||
(dollars in millions, unless | Per annum dividend rate | (in dollars) | 31-Mar-15 | Dec. 31, 2014 | 31-Mar-15 | Dec. 31, 2014 | |||||||||||||
otherwise noted) | |||||||||||||||||||
Series A | Noncumulative Perpetual Preferred Stock | Greater of (i) three-month LIBOR plus 0.565% for the related distribution period; or (ii) 4.000% | $ | 100,000 | 5,001 | 5,001 | $ | 500 | $ | 500 | |||||||||
Series C | Noncumulative Perpetual Preferred Stock | 5.2 | % | $ | 100,000 | 5,825 | 5,825 | 568 | 568 | ||||||||||
Series D | Noncumulative Perpetual Preferred Stock | 4.50% commencing Dec. 20, 2013 to but excluding June 20, 2023, then a floating rate equal to the three-month LIBOR plus 2.46% | $ | 100,000 | 5,000 | 5,000 | 494 | 494 | |||||||||||
Total | 15,826 | 15,826 | $ | 1,562 | $ | 1,562 | |||||||||||||
(a) | The carrying value of the Series C and Series D preferred stock is recorded net of issuance costs. | ||||||||||||||||||
Holders of both the Series A and Series C preferred stock are entitled to receive dividends on each dividend payment date (March 20, June 20, September 20 and December 20 of each year), if declared by BNY Mellon’s Board of Directors. Holders of the Series D preferred stock are entitled to receive dividends, if declared by our board of directors, on each June 20 and December 20, to but excluding June 20, 2023; and on each March 20, June 20, September 20 and December 20, from and including June 20, 2023. BNY Mellon’s ability to declare or pay dividends on, or purchase, redeem or otherwise acquire, shares of our common stock or any of our shares that rank junior to the preferred stock as to the payment of dividends and/or the distribution of any assets on any liquidation, dissolution or winding-up of BNY Mellon will be prohibited, subject to certain restrictions, in the event that we do not declare and pay in full preferred dividends for the then current dividend period of the Series A preferred stock or the last preceding dividend period of the Series C and Series D preferred stock. | |||||||||||||||||||
All of the outstanding shares of the Series A preferred stock are owned by Mellon Capital IV, which will pass through any dividend on the Series A preferred stock to the holders of its Normal Preferred Capital Securities. All of the outstanding shares of the Series C and Series D preferred stock are held by the depositary of the depositary shares, which will pass through the applicable portion of any dividend on the Series C and Series D preferred stock to the holders of record of their respective depositary shares. | |||||||||||||||||||
On March 20, 2015, The Bank of New York Mellon Corporation paid the following dividends for the noncumulative perpetual preferred stock for the dividend period ending in March 2015 to holders of record as of the close of business on March 5, 2015: | |||||||||||||||||||
• | $977.78 per share on the Series A Preferred Stock (equivalent to $9.7778 per Normal Preferred Capital Security of Mellon Capital IV, each representing 1/100th interest in a share of Series A Preferred Stock); and | ||||||||||||||||||
• | $1,300.00 per share on the Series C Preferred Stock (equivalent to $0.3250 per depositary share, each representing a 1/4,000th interest in a share of the Series C Preferred Stock). | ||||||||||||||||||
The preferred stock is not subject to the operation of a sinking fund and is not convertible into, or exchangeable for, shares of our common stock or any other class or series of our other securities. Subject to the restrictions in BNY Mellon’s 2007 replacement capital covenant, subsequently amended on May 8 | |||||||||||||||||||
and Sept. 11, 2012, we may redeem the Series A preferred stock, in whole or in part, at our option. We may also, at our option, redeem the shares of the Series C preferred stock in whole or in part, on or after the dividend payment date in September 2017 and the Series D preferred stock in whole or in part, on or after the dividend payment date in June 2023. Both the Series C or Series D preferred stock can be redeemed in whole but not in part at any time within 90 days following a regulatory capital treatment event (as defined in the Certificate of Designations of the Series C preferred stock and the Certificate of Designations of the Series D preferred stock). | |||||||||||||||||||
Terms of the Series A preferred stock, Series C preferred stock, and Series D preferred stock are more fully described in each of their Certificate of Designations, each of which is filed as an Exhibit to this Form 10-Q. |
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | Other comprehensive income (loss) | |||||||||||||||||||||||||||||
Components of other comprehensive income (loss) | ||||||||||||||||||||||||||||||
Quarter ended | ||||||||||||||||||||||||||||||
31-Mar-15 | Dec. 31, 2014 | 31-Mar-14 | ||||||||||||||||||||||||||||
(in millions) | Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | |||||||||||||||||||||
amount | (expense) | amount | amount | (expense) | amount | amount | (expense) | amount | ||||||||||||||||||||||
benefit | benefit | benefit | ||||||||||||||||||||||||||||
Foreign currency translation: | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments arising during the period | $ | (615 | ) | $ | (98 | ) | $ | (713 | ) | $ | (283 | ) | $ | (48 | ) | $ | (331 | ) | $ | 24 | $ | 13 | $ | 37 | ||||||
Total foreign currency translation | (615 | ) | (98 | ) | (713 | ) | (283 | ) | (48 | ) | (331 | ) | 24 | 13 | 37 | |||||||||||||||
Unrealized gain (loss) on assets available-for-sale: | ||||||||||||||||||||||||||||||
Unrealized gain (loss) arising during period | 202 | (68 | ) | 134 | 63 | (26 | ) | 37 | 250 | (88 | ) | 162 | ||||||||||||||||||
Reclassification adjustment (a) | (24 | ) | 9 | (15 | ) | (31 | ) | 13 | (18 | ) | (22 | ) | 9 | (13 | ) | |||||||||||||||
Net unrealized gain (loss) on assets available-for-sale | 178 | (59 | ) | 119 | 32 | (13 | ) | 19 | 228 | (79 | ) | 149 | ||||||||||||||||||
Defined benefit plans: | ||||||||||||||||||||||||||||||
Prior service cost arising during the period | — | — | — | 3 | (1 | ) | 2 | — | — | — | ||||||||||||||||||||
Net gain (loss) arising during the period | (185 | ) | 76 | (109 | ) | (766 | ) | 287 | (479 | ) | — | — | — | |||||||||||||||||
Foreign exchange adjustment | — | — | — | (2 | ) | 1 | (1 | ) | — | — | — | |||||||||||||||||||
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (a) | 7 | (2 | ) | 5 | 35 | (13 | ) | 22 | 30 | (11 | ) | 19 | ||||||||||||||||||
Total defined benefit plans | (178 | ) | 74 | (104 | ) | (730 | ) | 274 | (456 | ) | 30 | (11 | ) | 19 | ||||||||||||||||
Unrealized gain (loss) on cash flow hedges: | ||||||||||||||||||||||||||||||
Unrealized hedge gain (loss) arising during period | 2 | 5 | 7 | 5 | (4 | ) | 1 | 6 | — | 6 | ||||||||||||||||||||
Reclassification adjustment (a) | (3 | ) | (5 | ) | (8 | ) | (7 | ) | 4 | (3 | ) | (4 | ) | (1 | ) | (5 | ) | |||||||||||||
Net unrealized gain (loss) on cash flow hedges | (1 | ) | — | (1 | ) | (2 | ) | — | (2 | ) | 2 | (1 | ) | 1 | ||||||||||||||||
Total other comprehensive income (loss) | $ | (616 | ) | $ | (83 | ) | $ | (699 | ) | $ | (983 | ) | $ | 213 | $ | (770 | ) | $ | 284 | $ | (78 | ) | $ | 206 | ||||||
(a) | The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the Consolidated Income Statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the Consolidated Income Statement. See Note 16 of the Notes to Consolidated Financial Statements for the location of the reclassification adjustment related to cash flow hedges on the Consolidated Income Statement. |
Fair_Value_Measurement
Fair Value Measurement | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||
Fair Value Measurement | Fair value measurement | ||||||||||||||||||||||||||
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. A three-level hierarchy for fair value measurements is utilized based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. BNY Mellon’s own creditworthiness is considered when valuing liabilities. | |||||||||||||||||||||||||||
Fair value focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The objective is to determine from weighted indicators of fair value a reasonable point within the range that is most representative of fair value under current market conditions. | |||||||||||||||||||||||||||
Determination of fair value | |||||||||||||||||||||||||||
Following is a description of our valuation methodologies for assets and liabilities measured at fair value. We have established processes for determining fair values. Fair value is based upon quoted market prices in active markets, where available. For financial instruments where quotes from recent exchange transactions are not available, we determine fair value based on discounted cash flow analysis, comparison to similar instruments, and the use of financial models. Discounted cash flow analysis is dependent upon estimated future cash flows and the level of interest rates. Model-based pricing uses inputs of observable prices, where available, for interest rates, foreign exchange rates, option volatilities and other factors. Models are benchmarked and validated by an independent internal risk management function. Our valuation process takes into consideration factors such as counterparty credit quality, liquidity, concentration concerns, and observability of model parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. | |||||||||||||||||||||||||||
Most derivative contracts are valued using internally developed models which are calibrated to observable market data and employ standard market pricing theory for their valuations. An initial “risk-neutral” valuation is performed on each position assuming time-discounting based on an AA credit curve. Then, to arrive at a fair value that incorporates counter-party credit risk, a credit adjustment is made to these results by discounting each trade’s expected exposures to the counterparty using the counterparty’s credit spreads, as implied by the credit default swap market. We also adjust expected liabilities to the counterparty using BNY Mellon’s own credit spreads, as implied by the credit default swap market. Accordingly, the valuation of our derivative position is sensitive to the current changes in our own credit spreads as well as those of our counterparties. | |||||||||||||||||||||||||||
In certain cases, recent prices may not be observable for instruments that trade in inactive or less active markets. Upon evaluating the uncertainty in valuing financial instruments subject to liquidity issues, we make an adjustment to their value. The determination of the liquidity adjustment includes the availability of external quotes, the time since the latest available quote and the price volatility of the instrument. | |||||||||||||||||||||||||||
Certain parameters in some financial models are not directly observable and, therefore, are based on management’s estimates and judgments. These financial instruments are normally traded less actively. We apply valuation adjustments to mitigate the possibility of error and revision in the model based estimate value. Examples include products where parameters such as correlation and recovery rates are unobservable. | |||||||||||||||||||||||||||
The methods described above for instruments that trade in inactive or less active markets may produce a current fair value calculation that may not be indicative of net realizable value or reflective of future fair values. We believe our methods of determining fair value are appropriate and consistent with other market participants. However, the use of different methodologies or different assumptions to value certain financial instruments could result in a different estimate of fair value. | |||||||||||||||||||||||||||
Valuation hierarchy | |||||||||||||||||||||||||||
A three-level valuation hierarchy is used for disclosure of fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are described below. | |||||||||||||||||||||||||||
Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 1 assets and liabilities include debt and equity securities, derivative financial instruments actively traded on exchanges and U.S. Treasury securities that are actively traded in highly liquid over-the-counter markets. | |||||||||||||||||||||||||||
Level 2: Observable inputs other than Level 1 prices, for example, quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs that are observable or can be corroborated, either directly or indirectly, for substantially the full term of the financial instrument. Level 2 assets and liabilities include debt instruments that are traded less frequently than exchange-traded securities and derivative instruments whose model inputs are observable in the market or can be corroborated by market-observable data. Examples in this category are agency and non-agency mortgage-backed securities, corporate debt securities and over-the-counter derivative contracts. | |||||||||||||||||||||||||||
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Examples in this category include certain private equity investments, derivative contracts that are highly structured or long-dated, and interests in certain securitized financial assets. | |||||||||||||||||||||||||||
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||||||||||
Following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. | |||||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||||
Where quoted prices are available in an active market, we classify the securities within Level 1 of the valuation hierarchy. Securities include both long and short positions. Level 1 securities include highly liquid government bonds, money market funds, foreign covered bonds and exchange-traded equities. | |||||||||||||||||||||||||||
If quoted market prices are not available, we estimate fair values using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include agency and non-agency mortgage-backed securities, state and political subdivisions, commercial mortgage-backed securities, sovereign debt, corporate bonds and foreign covered bonds. | |||||||||||||||||||||||||||
For securities where quotes from recent transactions are not available for identical securities, we determine fair value primarily based on pricing sources with reasonable levels of price transparency that employ financial models or obtain comparison to similar instruments to arrive at “consensus” prices. | |||||||||||||||||||||||||||
Specifically, the pricing sources obtain recent transactions for similar types of securities (e.g., vintage, position in the securitization structure) and ascertain variables such as discount rate and speed of prepayment for the types of transaction and apply such variables to similar types of bonds. We view these as observable transactions in the current marketplace and classify such securities as Level 2. Pricing sources discontinue pricing any specific security whenever they determine there is insufficient observable data to provide a good faith opinion on price. | |||||||||||||||||||||||||||
In addition, we have significant investments in more actively traded agency RMBS and other types of securities such as sovereign debt. The pricing sources derive the prices for these securities largely from quotes they obtain from three major inter-dealer brokers. The pricing sources receive their daily observed trade price and other information feeds from the inter-dealer brokers. | |||||||||||||||||||||||||||
For securities with bond insurance, the financial strength of the insurance provider is analyzed and that information is included in the fair value assessment for such securities. | |||||||||||||||||||||||||||
In certain cases where there is limited activity or less transparency around inputs to the valuation, we classify those securities in Level 3 of the valuation hierarchy. Securities classified within Level 3 primarily include securities of state and political subdivisions and distressed debt securities. | |||||||||||||||||||||||||||
At March 31, 2015, more than 99% of our securities were valued by pricing sources with reasonable levels of price transparency. Less than 1% of our securities were priced based on economic models and non-binding dealer quotes, and are included in Level 3 of the valuation hierarchy. | |||||||||||||||||||||||||||
Consolidated collateralized loan obligations | |||||||||||||||||||||||||||
BNY Mellon values assets in consolidated CLOs using observable market prices observed from the secondary loan market. The returns to the note holders are solely dependent on the assets and accordingly equal the value of those assets. Based on the structure of the CLOs, the valuation of the assets is attributable to the note holders. Changes in the values of assets and liabilities are reflected in the income statement as investment and other income and interest of investment management fund note holders, respectively. Consolidated CLOs are generally classified within Level 2 of the valuation hierarchy. | |||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||
We classify exchange-traded derivatives valued using quoted prices in Level 1 of the valuation hierarchy. Examples include exchange-traded equity and foreign exchange options. Since few other classes of derivative contracts are listed on an exchange, most of our derivative positions are valued using internally developed models that use as their basis readily observable market parameters, and we classify them in Level 2 of the valuation hierarchy. Such derivatives include swaps and options, foreign exchange spot and forward contracts and credit default swaps. | |||||||||||||||||||||||||||
Derivatives valued using models with significant unobservable market parameters in markets that lack two-way flow are classified in Level 3 of the valuation hierarchy. Examples include long-dated interest rate or currency swaps and options, where parameters may be unobservable for longer maturities; and certain products, where correlation risk is unobservable. The fair value of these derivatives composes less than 1% of our derivative financial instruments. Additional disclosures of derivative instruments are provided in Note 16 of the Notes to Consolidated Financial Statements. | |||||||||||||||||||||||||||
Loans and unfunded lending-related commitments | |||||||||||||||||||||||||||
Where quoted market prices are not available, we generally base the fair value of loans and unfunded lending-related commitments on observable market prices of similar instruments, including bonds, credit derivatives and loans with similar characteristics. If observable market prices are not available, we base the fair value on estimated cash flows adjusted for credit risk which are discounted using an interest rate appropriate for the maturity of the applicable loans or the unfunded lending-related commitments. | |||||||||||||||||||||||||||
Unrealized gains and losses, if any, on unfunded lending-related commitments carried at fair value are classified in other assets and other liabilities, respectively. Loans and unfunded lending-related commitments carried at fair value are generally classified within Level 2 of the valuation hierarchy. | |||||||||||||||||||||||||||
Seed capital | |||||||||||||||||||||||||||
In our Investment Management business, we manage investment assets, including equities, fixed income, money market and alternative investment funds for institutions and other investors. As part of that activity, we make seed capital investments in certain funds. Seed capital is included in other assets. When applicable, we value seed capital based on the published NAV of the fund. We include funds in which ownership interests in the fund are publicly traded in an active market and institutional funds in which investors trade in and out daily in Level 1 of the valuation hierarchy. We include open-end funds where investors are allowed to sell their ownership interest back to the fund less frequently than daily and where our interest in the fund contains no other rights or obligations in Level 2 of the valuation hierarchy. However, we generally include investments in funds that allow investors to sell their ownership interest back to the fund less frequently than monthly in Level 3, unless actual redemption prices are observable. | |||||||||||||||||||||||||||
For other types of investments in funds, we consider all of the rights and obligations inherent in our ownership interest, including the reported NAV as well as other factors that affect the fair value of our interest in the fund. To the extent the NAV measurements reported for the investments are based on unobservable inputs or include other rights and obligations (e.g., obligation to meet cash calls), we generally classify them in Level 3 of the valuation hierarchy. | |||||||||||||||||||||||||||
Certain interests in securitizations | |||||||||||||||||||||||||||
For certain interests in securitizations that are classified in securities available-for-sale, trading assets and long-term debt, we use discounted cash flow models, which generally include assumptions of projected finance charges related to the securitized assets, estimated net credit losses, prepayment assumptions and estimates of payments to third-party investors. When available, we compare our fair value estimates and assumptions to market activity and to the actual results of the securitized portfolio. | |||||||||||||||||||||||||||
Private equity investments | |||||||||||||||||||||||||||
Our Other segment includes holdings of nonpublic private equity investments through funds managed by third-party investment managers. We value private equity investments initially based upon the transaction price, which we subsequently adjust to reflect expected exit values as evidenced by financing and sale transactions with third parties or through ongoing reviews by the investment managers. | |||||||||||||||||||||||||||
Private equity investments also include publicly held equity investments, generally obtained through the initial public offering of privately held equity investments. These equity investments are often held in a partnership structure. Publicly held investments are marked-to-market at the quoted public value less adjustments for regulatory or contractual sales restrictions or adjustments to reflect the difficulty in selling a partnership interest. | |||||||||||||||||||||||||||
Discounts for restrictions are quantified by analyzing the length of the restriction period and the volatility of the equity security. Publicly held private equity investments are primarily classified in Level 2 of the valuation hierarchy. | |||||||||||||||||||||||||||
The following tables present the financial instruments carried at fair value at March 31, 2015 and Dec. 31, 2014, by caption on the consolidated balance sheet and by valuation hierarchy (as described above). We have included credit ratings information in certain of the tables because the information indicates the degree of credit risk to which we are exposed, and significant changes in ratings classifications could result in increased risk for us. There were no material transfers between Level 1 and Level 2 during the first quarter of 2015. | |||||||||||||||||||||||||||
Assets measured at fair value on a recurring basis at March 31, 2015 | |||||||||||||||||||||||||||
(dollar amounts in millions) | Level 1 | Level 2 | Level 3 | Netting (a) | Total carrying | ||||||||||||||||||||||
value | |||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||
U.S. Treasury | $ | 18,586 | $ | — | $ | — | $ | — | $ | 18,586 | |||||||||||||||||
U.S. Government agencies | — | 385 | — | — | 385 | ||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 40 | 15,203 | — | — | 15,243 | ||||||||||||||||||||||
State and political subdivisions (b) | — | 5,128 | 11 | — | 5,139 | ||||||||||||||||||||||
Agency RMBS | — | 25,183 | — | — | 25,183 | ||||||||||||||||||||||
Non-agency RMBS | — | 920 | — | — | 920 | ||||||||||||||||||||||
Other RMBS | — | 1,386 | — | — | 1,386 | ||||||||||||||||||||||
Commercial MBS | — | 1,851 | — | — | 1,851 | ||||||||||||||||||||||
Agency commercial MBS | — | 3,785 | — | — | 3,785 | ||||||||||||||||||||||
Asset-backed CLOs | — | 2,258 | — | — | 2,258 | ||||||||||||||||||||||
Other asset-backed securities | — | 3,400 | — | — | 3,400 | ||||||||||||||||||||||
Equity securities | 92 | — | — | — | 92 | ||||||||||||||||||||||
Money market funds (b) | 730 | — | — | — | 730 | ||||||||||||||||||||||
Corporate bonds | — | 1,745 | — | — | 1,745 | ||||||||||||||||||||||
Other debt securities | — | 2,068 | — | — | 2,068 | ||||||||||||||||||||||
Foreign covered bonds | 2,338 | 470 | — | — | 2,808 | ||||||||||||||||||||||
Non-agency RMBS (c) | — | 2,138 | — | — | 2,138 | ||||||||||||||||||||||
Total available-for-sale securities | 21,786 | 65,920 | 11 | — | 87,717 | ||||||||||||||||||||||
Trading assets: | |||||||||||||||||||||||||||
Debt and equity instruments (b) | 1,579 | 2,288 | — | — | 3,867 | ||||||||||||||||||||||
Derivative assets not designated as hedging: | |||||||||||||||||||||||||||
Interest rate | 27 | 17,024 | 3 | (13,365 | ) | 3,689 | |||||||||||||||||||||
Foreign exchange | — | 6,199 | — | (4,391 | ) | 1,808 | |||||||||||||||||||||
Equity | 64 | 192 | 3 | (118 | ) | 141 | |||||||||||||||||||||
Total derivative assets not designated as hedging | 91 | 23,415 | 6 | (17,874 | ) | 5,638 | |||||||||||||||||||||
Total trading assets | 1,670 | 25,703 | 6 | (17,874 | ) | 9,505 | |||||||||||||||||||||
Loans | — | 140 | — | — | 140 | ||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||
Derivative assets designated as hedging: | |||||||||||||||||||||||||||
Interest rate | — | 574 | — | — | 574 | ||||||||||||||||||||||
Foreign exchange | — | 464 | — | — | 464 | ||||||||||||||||||||||
Total derivative assets designated as hedging | — | 1,038 | — | — | 1,038 | ||||||||||||||||||||||
Other assets (d) | 234 | 897 | 54 | — | 1,185 | ||||||||||||||||||||||
Total other assets | 234 | 1,935 | 54 | — | 2,223 | ||||||||||||||||||||||
Subtotal assets of operations at fair value | 23,690 | 93,698 | 71 | (17,874 | ) | 99,585 | |||||||||||||||||||||
Percentage of assets prior to netting | 20 | % | 80 | % | — | % | |||||||||||||||||||||
Assets of consolidated investment management funds: | |||||||||||||||||||||||||||
Trading assets | 170 | 7,682 | — | — | 7,852 | ||||||||||||||||||||||
Other assets | 462 | 111 | — | — | 573 | ||||||||||||||||||||||
Total assets of consolidated investment management funds | 632 | 7,793 | — | — | 8,425 | ||||||||||||||||||||||
Total assets | $ | 24,322 | $ | 101,491 | $ | 71 | $ | (17,874 | ) | $ | 108,010 | ||||||||||||||||
Percentage of assets prior to netting | 19 | % | 81 | % | — | % | |||||||||||||||||||||
Liabilities measured at fair value on a recurring basis at March 31, 2015 | |||||||||||||||||||||||||||
(dollar amounts in millions) | Level 1 | Level 2 | Level 3 | Netting (a) | Total carrying | ||||||||||||||||||||||
value | |||||||||||||||||||||||||||
Trading liabilities: | |||||||||||||||||||||||||||
Debt and equity instruments | $ | 412 | $ | 235 | $ | — | $ | — | $ | 647 | |||||||||||||||||
Derivative liabilities not designated as hedging: | |||||||||||||||||||||||||||
Interest rate | 8 | 17,225 | 3 | (13,836 | ) | 3,400 | |||||||||||||||||||||
Foreign exchange | — | 6,073 | — | (3,044 | ) | 3,029 | |||||||||||||||||||||
Equity and other contracts | 28 | 354 | 3 | (119 | ) | 266 | |||||||||||||||||||||
Total derivative liabilities not designated as hedging | 36 | 23,652 | 6 | (16,999 | ) | 6,695 | |||||||||||||||||||||
Total trading liabilities | 448 | 23,887 | 6 | (16,999 | ) | 7,342 | |||||||||||||||||||||
Long-term debt (b) | — | 355 | — | — | 355 | ||||||||||||||||||||||
Other liabilities - derivative liabilities designated as hedging: | |||||||||||||||||||||||||||
Interest rate | — | 553 | — | — | 553 | ||||||||||||||||||||||
Foreign exchange | — | 59 | — | — | 59 | ||||||||||||||||||||||
Total other liabilities - derivative liabilities designated as hedging | — | 612 | — | — | 612 | ||||||||||||||||||||||
Subtotal liabilities of operations at fair value | 448 | 24,854 | 6 | (16,999 | ) | 8,309 | |||||||||||||||||||||
Percentage of liabilities prior to netting | 2 | % | 98 | % | — | % | |||||||||||||||||||||
Liabilities of consolidated investment management funds: | |||||||||||||||||||||||||||
Trading liabilities | — | 6,584 | — | — | 6,584 | ||||||||||||||||||||||
Other liabilities | 27 | 9 | — | — | 36 | ||||||||||||||||||||||
Total liabilities of consolidated investment management funds | 27 | 6,593 | — | — | 6,620 | ||||||||||||||||||||||
Total liabilities | $ | 475 | $ | 31,447 | $ | 6 | $ | (16,999 | ) | $ | 14,929 | ||||||||||||||||
Percentage of liabilities prior to netting | 1 | % | 99 | % | — | % | |||||||||||||||||||||
(a) | ASC 815 permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities, and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product. | ||||||||||||||||||||||||||
(b) | Includes certain interests in securitizations. | ||||||||||||||||||||||||||
(c) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | ||||||||||||||||||||||||||
(d) | Includes private equity investments and seed capital. | ||||||||||||||||||||||||||
Assets measured at fair value on a recurring basis at Dec. 31, 2014 | |||||||||||||||||||||||||||
(dollar amounts in millions) | Level 1 | Level 2 | Level 3 | Netting (a) | Total carrying | ||||||||||||||||||||||
value | |||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||
U.S. Treasury | $ | 19,997 | $ | — | $ | — | $ | — | $ | 19,997 | |||||||||||||||||
U.S. Government agencies | — | 343 | — | — | 343 | ||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 40 | 17,244 | — | — | 17,284 | ||||||||||||||||||||||
State and political subdivisions (b) | — | 5,236 | 11 | — | 5,247 | ||||||||||||||||||||||
Agency RMBS | — | 32,600 | — | — | 32,600 | ||||||||||||||||||||||
Non-agency RMBS | — | 953 | — | — | 953 | ||||||||||||||||||||||
Other RMBS | — | 1,551 | — | — | 1,551 | ||||||||||||||||||||||
Commercial MBS | — | 1,959 | — | — | 1,959 | ||||||||||||||||||||||
Agency commercial MBS | — | 3,132 | — | — | 3,132 | ||||||||||||||||||||||
Asset-backed CLOs | — | 2,130 | — | — | 2,130 | ||||||||||||||||||||||
Other asset-backed securities | — | 3,240 | — | — | 3,240 | ||||||||||||||||||||||
Equity securities | 95 | — | — | — | 95 | ||||||||||||||||||||||
Money market funds (b) | 763 | — | — | — | 763 | ||||||||||||||||||||||
Corporate bonds | — | 1,785 | — | — | 1,785 | ||||||||||||||||||||||
Other debt securities | — | 2,169 | — | — | 2,169 | ||||||||||||||||||||||
Foreign covered bonds | 2,250 | 618 | — | — | 2,868 | ||||||||||||||||||||||
Non-agency RMBS (c) | — | 2,214 | — | — | 2,214 | ||||||||||||||||||||||
Total available-for-sale securities | 23,145 | 75,174 | 11 | — | 98,330 | ||||||||||||||||||||||
Trading assets: | |||||||||||||||||||||||||||
Debt and equity instruments (b) | 2,204 | 2,217 | — | — | 4,421 | ||||||||||||||||||||||
Derivative assets not designated as hedging: | |||||||||||||||||||||||||||
Interest rate | 7 | 17,137 | 6 | (13,942 | ) | 3,208 | |||||||||||||||||||||
Foreign exchange | — | 6,280 | — | (4,246 | ) | 2,034 | |||||||||||||||||||||
Equity | 96 | 278 | 3 | (159 | ) | 218 | |||||||||||||||||||||
Total derivative assets not designated as hedging | 103 | 23,695 | 9 | (18,347 | ) | 5,460 | |||||||||||||||||||||
Total trading assets | 2,307 | 25,912 | 9 | (18,347 | ) | 9,881 | |||||||||||||||||||||
Loans | — | 21 | — | — | 21 | ||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||
Derivative assets designated as hedging: | |||||||||||||||||||||||||||
Interest rate | — | 477 | — | — | 477 | ||||||||||||||||||||||
Foreign exchange | — | 374 | — | — | 374 | ||||||||||||||||||||||
Total derivative assets designated as hedging | — | 851 | — | — | 851 | ||||||||||||||||||||||
Other assets (d) | 250 | 745 | 70 | — | 1,065 | ||||||||||||||||||||||
Total other assets | 250 | 1,596 | 70 | — | 1,916 | ||||||||||||||||||||||
Subtotal assets of operations at fair value | 25,702 | 102,703 | 90 | (18,347 | ) | 110,148 | |||||||||||||||||||||
Percentage of assets prior to netting | 20 | % | 80 | % | — | % | |||||||||||||||||||||
Assets of consolidated investment management funds: | |||||||||||||||||||||||||||
Trading assets | 100 | 8,578 | — | — | 8,678 | ||||||||||||||||||||||
Other assets | 457 | 147 | — | — | 604 | ||||||||||||||||||||||
Total assets of consolidated investment management funds | 557 | 8,725 | — | — | 9,282 | ||||||||||||||||||||||
Total assets | $ | 26,259 | $ | 111,428 | $ | 90 | $ | (18,347 | ) | $ | 119,430 | ||||||||||||||||
Percentage of assets prior to netting | 19 | % | 81 | % | — | % | |||||||||||||||||||||
Liabilities measured at fair value on a recurring basis at Dec. 31, 2014 | |||||||||||||||||||||||||||
(dollar amounts in millions) | Level 1 | Level 2 | Level 3 | Netting (a) | Total carrying | ||||||||||||||||||||||
value | |||||||||||||||||||||||||||
Trading liabilities: | |||||||||||||||||||||||||||
Debt and equity instruments | $ | 367 | $ | 294 | $ | — | $ | — | $ | 661 | |||||||||||||||||
Derivative liabilities not designated as hedging: | |||||||||||||||||||||||||||
Interest rate | 3 | 17,645 | 6 | (14,467 | ) | 3,187 | |||||||||||||||||||||
Foreign exchange | — | 6,367 | — | (3,149 | ) | 3,218 | |||||||||||||||||||||
Equity and other contracts | 47 | 499 | 3 | (181 | ) | 368 | |||||||||||||||||||||
Total derivative liabilities not designated as hedging | 50 | 24,511 | 9 | (17,797 | ) | 6,773 | |||||||||||||||||||||
Total trading liabilities | 417 | 24,805 | 9 | (17,797 | ) | 7,434 | |||||||||||||||||||||
Long-term debt (b) | — | 347 | — | — | 347 | ||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||
Derivative liabilities designated as hedging: | |||||||||||||||||||||||||||
Interest rate | — | 385 | — | — | 385 | ||||||||||||||||||||||
Foreign exchange | — | 62 | — | — | 62 | ||||||||||||||||||||||
Total derivative liabilities designated as hedging | — | 447 | — | — | 447 | ||||||||||||||||||||||
Other liabilities | 4 | — | — | — | 4 | ||||||||||||||||||||||
Total other liabilities | 4 | 447 | — | — | 451 | ||||||||||||||||||||||
Subtotal liabilities of operations at fair value | 421 | 25,599 | 9 | (17,797 | ) | 8,232 | |||||||||||||||||||||
Percentage of liabilities prior to netting | 2 | % | 98 | % | — | % | |||||||||||||||||||||
Liabilities of consolidated investment management funds: | |||||||||||||||||||||||||||
Trading liabilities | — | 7,660 | — | — | 7,660 | ||||||||||||||||||||||
Other liabilities | 1 | 8 | — | — | 9 | ||||||||||||||||||||||
Total liabilities of consolidated investment management funds | 1 | 7,668 | — | — | 7,669 | ||||||||||||||||||||||
Total liabilities | $ | 422 | $ | 33,267 | $ | 9 | $ | (17,797 | ) | $ | 15,901 | ||||||||||||||||
Percentage of liabilities prior to netting | 1 | % | 99 | % | — | % | |||||||||||||||||||||
(a) | ASC 815 permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities, and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product. | ||||||||||||||||||||||||||
(b) | Includes certain interests in securitizations. | ||||||||||||||||||||||||||
(c) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | ||||||||||||||||||||||||||
(d) | Includes private equity investments and seed capital. | ||||||||||||||||||||||||||
Details of certain items measured at fair value | 31-Mar-15 | Dec. 31, 2014 | |||||||||||||||||||||||||
on a recurring basis | Total | Ratings | Total | Ratings | |||||||||||||||||||||||
carrying | AAA/ | A+/ | BBB+/ | BB+ and | carrying value (a) | AAA/ | A+/ | BBB+/ | BB+ and | ||||||||||||||||||
(dollar amounts in millions) | value (a) | AA- | A- | BBB- | lower | AA- | A- | BBB- | lower | ||||||||||||||||||
Non-agency RMBS, originated in: | |||||||||||||||||||||||||||
2007 | $ | 76 | — | % | — | % | — | % | 100 | % | $ | 78 | — | % | — | % | — | % | 100 | % | |||||||
2006 | 134 | — | — | — | 100 | 138 | — | — | — | 100 | |||||||||||||||||
2005 | 276 | — | 21 | 18 | 61 | 284 | — | 21 | 19 | 60 | |||||||||||||||||
2004 and earlier | 434 | 3 | 5 | 27 | 65 | 453 | 3 | 5 | 27 | 65 | |||||||||||||||||
Total non-agency RMBS | $ | 920 | 1 | % | 8 | % | 19 | % | 72 | % | $ | 953 | 1 | % | 9 | % | 19 | % | 71 | % | |||||||
Commercial MBS - Domestic, originated in: | |||||||||||||||||||||||||||
2009-2015 | $ | 686 | 84 | % | 16 | % | — | % | — | % | $ | 639 | 83 | % | 17 | % | — | % | — | % | |||||||
2008 | 19 | 100 | — | — | — | 19 | 100 | — | — | — | |||||||||||||||||
2007 | 349 | 65 | 21 | 14 | — | 353 | 65 | 21 | 14 | — | |||||||||||||||||
2006 | 545 | 82 | 18 | — | — | 599 | 83 | 17 | — | — | |||||||||||||||||
2005 | 179 | 100 | — | — | — | 271 | 100 | — | — | — | |||||||||||||||||
2004 and earlier | 6 | 100 | — | — | — | 6 | 100 | — | — | — | |||||||||||||||||
Total commercial MBS - Domestic | $ | 1,784 | 81 | % | 16 | % | 3 | % | — | % | $ | 1,887 | 82 | % | 15 | % | 3 | % | — | % | |||||||
Foreign covered bonds: | |||||||||||||||||||||||||||
Canada | $ | 1,394 | 100 | % | — | % | — | % | — | % | $ | 1,266 | 100 | % | — | % | — | % | — | % | |||||||
United Kingdom | 604 | 100 | — | — | — | 690 | 100 | — | — | — | |||||||||||||||||
Netherlands | 215 | 100 | — | — | — | 244 | 100 | — | — | — | |||||||||||||||||
Other | 595 | 100 | — | — | — | 668 | 100 | — | — | — | |||||||||||||||||
Total foreign covered bonds | $ | 2,808 | 100 | % | — | % | — | % | — | % | $ | 2,868 | 100 | % | — | % | — | % | — | % | |||||||
European floating rate notes - available-for-sale: | |||||||||||||||||||||||||||
United Kingdom | $ | 1,052 | 83 | % | 17 | % | — | % | — | % | $ | 1,172 | 83 | % | 17 | % | — | % | — | % | |||||||
Netherlands | 250 | 100 | — | — | — | 296 | 100 | — | — | — | |||||||||||||||||
Ireland | 129 | — | — | — | 100 | 144 | — | — | — | 100 | |||||||||||||||||
Other | 21 | 100 | — | — | — | 25 | 99 | 1 | — | — | |||||||||||||||||
Total European floating rate notes - available-for-sale | $ | 1,452 | 79 | % | 12 | % | — | % | 9 | % | $ | 1,637 | 79 | % | 12 | % | — | % | 9 | % | |||||||
Sovereign debt/sovereign guaranteed: | |||||||||||||||||||||||||||
France | $ | 4,252 | 100 | % | — | % | — | % | — | % | $ | 3,550 | 100 | % | — | % | — | % | — | % | |||||||
United Kingdom | 2,858 | 100 | — | — | — | 5,076 | 100 | — | — | — | |||||||||||||||||
Spain | 1,817 | — | — | 100 | — | 1,978 | — | — | 100 | — | |||||||||||||||||
Germany | 1,548 | 100 | — | — | — | 1,522 | 100 | — | — | — | |||||||||||||||||
Italy | 1,252 | — | — | 100 | — | 1,427 | — | — | 100 | — | |||||||||||||||||
Netherlands | 1,237 | 100 | — | — | — | 1,800 | 100 | — | — | — | |||||||||||||||||
Belguim | 1,058 | 100 | — | — | — | 829 | 100 | — | — | — | |||||||||||||||||
Ireland | 802 | — | 17 | 83 | — | 672 | — | — | 100 | — | |||||||||||||||||
Other | 419 | 83 | — | 17 | — | 430 | 81 | — | 19 | — | |||||||||||||||||
Total sovereign debt/sovereign guaranteed | $ | 15,243 | 74 | % | 1 | % | 25 | % | — | % | $ | 17,284 | 76 | % | — | % | 24 | % | — | % | |||||||
Non-agency RMBS (b), originated in: | |||||||||||||||||||||||||||
2007 | $ | 599 | — | % | — | % | — | % | 100 | % | $ | 620 | — | % | — | % | — | % | 100 | % | |||||||
2006 | 627 | — | — | 1 | 99 | 653 | — | — | 1 | 99 | |||||||||||||||||
2005 | 706 | — | 3 | 1 | 96 | 727 | — | 3 | 1 | 96 | |||||||||||||||||
2004 and earlier | 206 | — | 4 | 7 | 89 | 214 | — | 4 | 7 | 89 | |||||||||||||||||
Total non-agency RMBS (b) | $ | 2,138 | — | % | 1 | % | 1 | % | 98 | % | $ | 2,214 | — | % | 1 | % | 1 | % | 98 | % | |||||||
(a) | At March 31, 2015 and Dec. 31, 2014, foreign covered bonds and sovereign debt were included in Level 1 and Level 2 in the valuation hierarchy. All other assets in the table are Level 2 assets in the valuation hierarchy. | ||||||||||||||||||||||||||
(b) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | ||||||||||||||||||||||||||
Changes in Level 3 fair value measurements | |||||||||||||||||||||||||||
Our classification of a financial instrument in Level 3 of the valuation hierarchy is based on the significance of the unobservable factors to the overall fair value measurement. However, these instruments generally include other observable components that are actively quoted or validated to third-party sources; accordingly, the gains and losses in the table below include changes in fair value due to observable parameters as well as the unobservable parameters in our valuation methodologies. We also frequently manage the risks of Level 3 financial instruments using securities and derivatives positions that are Level 1 or 2 instruments which are not included in the table; accordingly, the gains or losses below do not reflect the effect of our risk management activities related to the Level 3 instruments. | |||||||||||||||||||||||||||
The Company has a Level 3 Pricing Committee which evaluates the valuation techniques used in determining the fair value of Level 3 assets and liabilities. | |||||||||||||||||||||||||||
The tables below include a roll forward of the balance sheet amounts for the quarters ended March 31, 2015 and 2014 (including the change in fair value), for financial instruments classified in Level 3 of the valuation hierarchy. | |||||||||||||||||||||||||||
Fair value measurements for assets using significant unobservable inputs for the three months ended March 31, 2015 | |||||||||||||||||||||||||||
Available-for-sale securities | Trading assets | Total assets | |||||||||||||||||||||||||
(in millions) | State and | Derivative | (a) | Other | |||||||||||||||||||||||
political | assets | assets | |||||||||||||||||||||||||
subdivisions | |||||||||||||||||||||||||||
Fair value at Dec. 31, 2014 | $ | 11 | $ | 9 | $ | 70 | $ | 90 | |||||||||||||||||||
Total gains or (losses) for the period: | |||||||||||||||||||||||||||
Included in earnings (or changes in net assets) | — | (b) | (1 | ) | (c) | (2 | ) | (d) | (3 | ) | |||||||||||||||||
Purchases, sales and settlements: | |||||||||||||||||||||||||||
Purchases | — | — | 7 | 7 | |||||||||||||||||||||||
Sales | — | — | (21 | ) | (21 | ) | |||||||||||||||||||||
Settlements | — | (2 | ) | — | (2 | ) | |||||||||||||||||||||
Fair value at March 31, 2015 | $ | 11 | $ | 6 | $ | 54 | $ | 71 | |||||||||||||||||||
Change in unrealized gains or (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period | $ | (1 | ) | $ | — | $ | (1 | ) | |||||||||||||||||||
(a) | Derivative assets are reported on a gross basis. | ||||||||||||||||||||||||||
(b) | Realized gains (losses) are reported in securities gains (losses). Unrealized gains (losses) are reported in accumulated other comprehensive income (loss) except for the credit portion of OTTI losses which are recorded in securities gains (losses). | ||||||||||||||||||||||||||
(c) | Reported in foreign exchange and other trading revenue. | ||||||||||||||||||||||||||
(d) | Reported in investment and other income. | ||||||||||||||||||||||||||
Fair value measurements for liabilities using significant unobservable inputs for the three months ended March 31, 2015 | |||||||||||||||||||||||||||
Trading liabilities | Total liabilities | ||||||||||||||||||||||||||
(in millions) | Derivative liabilities | (a) | |||||||||||||||||||||||||
Fair value at Dec. 31, 2014 | $ | 9 | $ | 9 | |||||||||||||||||||||||
Total (gains) or losses for the period: | |||||||||||||||||||||||||||
Included in earnings (or changes in net liabilities) | (1 | ) | (b) | (1 | ) | ||||||||||||||||||||||
Settlements | (2 | ) | (2 | ) | |||||||||||||||||||||||
Fair value at March 31, 2015 | $ | 6 | $ | 6 | |||||||||||||||||||||||
Change in unrealized (gains) or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period | $ | 1 | $ | 1 | |||||||||||||||||||||||
(a) | Derivative liabilities are reported on a gross basis. | ||||||||||||||||||||||||||
(b) | Reported in foreign exchange and other trading revenue. | ||||||||||||||||||||||||||
Fair value measurements for assets using significant unobservable inputs for the three months ended March 31, 2014 | |||||||||||||||||||||||||||
Available-for-sale securities | Trading assets | ||||||||||||||||||||||||||
(in millions) | State and political | Debt and equity | Derivative | (a) | Other | Total | |||||||||||||||||||||
subdivisions | instruments | assets | assets | assets | |||||||||||||||||||||||
Fair value at Dec. 31, 2013 | $ | 11 | $ | 1 | $ | 22 | $ | 105 | $ | 139 | |||||||||||||||||
Transfers out of Level 3 | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Total gains or (losses) for the period: | |||||||||||||||||||||||||||
Included in earnings (or changes in net assets) | — | (b) | — | (c) | (2 | ) | (c) | 2 | (d) | — | |||||||||||||||||
Purchases and sales: | |||||||||||||||||||||||||||
Purchases | — | — | — | 8 | 8 | ||||||||||||||||||||||
Sales | — | — | — | (5 | ) | (5 | ) | ||||||||||||||||||||
Fair value at March 31, 2014 | $ | 11 | $ | 1 | $ | 19 | $ | 110 | $ | 141 | |||||||||||||||||
Change in unrealized gains or (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period | $ | — | $ | (2 | ) | $ | — | $ | (2 | ) | |||||||||||||||||
(a) | Derivative assets are reported on a gross basis. | ||||||||||||||||||||||||||
(b) | Realized gains (losses) are reported in securities gains (losses). Unrealized gains (losses) are reported in accumulated other comprehensive income (loss) except for the credit portion of OTTI losses which are recorded in securities gains (losses). | ||||||||||||||||||||||||||
(c) | Reported in foreign exchange and other trading revenue. | ||||||||||||||||||||||||||
(d) | Reported in investment and other income. | ||||||||||||||||||||||||||
Fair value measurements for liabilities using significant unobservable inputs for the three months ended March 31, 2014 | |||||||||||||||||||||||||||
Trading liabilities | Total liabilities | ||||||||||||||||||||||||||
(in millions) | Derivative liabilities | (a) | |||||||||||||||||||||||||
Fair value at Dec. 31, 2013 | $ | 75 | $ | 75 | |||||||||||||||||||||||
Transfers out of Level 3 | (37 | ) | (37 | ) | |||||||||||||||||||||||
Total (gains) or losses for the period: | |||||||||||||||||||||||||||
Included in earnings (or changes in net liabilities) | 3 | (b) | 3 | ||||||||||||||||||||||||
Fair value at March 31, 2014 | $ | 41 | $ | 41 | |||||||||||||||||||||||
Change in unrealized (gains) or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period | $ | 3 | $ | 3 | |||||||||||||||||||||||
(a) | Derivative liabilities are reported on a gross basis. | ||||||||||||||||||||||||||
(b) | Reported in foreign exchange and other trading revenue. | ||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a nonrecurring basis | |||||||||||||||||||||||||||
Under certain circumstances, we make adjustments to fair value our assets, liabilities and unfunded lending-related commitments although they are not measured at fair value on an ongoing basis. An example would be the recording of an impairment of an asset. | |||||||||||||||||||||||||||
The following tables present the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy as of March 31, 2015 and Dec. 31, 2014, for which a nonrecurring change in fair value has been recorded during the quarters ended March 31, 2015 and Dec. 31, 2014. | |||||||||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis at March 31, 2015 | Total carrying | ||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | value | |||||||||||||||||||||||
Loans (a) | $ | — | $ | 108 | $ | 2 | $ | 110 | |||||||||||||||||||
Other assets (b) | — | 7 | — | 7 | |||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $ | — | $ | 115 | $ | 2 | $ | 117 | |||||||||||||||||||
Assets measured at fair value on a nonrecurring basis at Dec. 31, 2014 | Total carrying | ||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | value | |||||||||||||||||||||||
Loans (a) | $ | — | $ | 112 | $ | 2 | $ | 114 | |||||||||||||||||||
Other assets (b) | — | 6 | — | 6 | |||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $ | — | $ | 118 | $ | 2 | $ | 120 | |||||||||||||||||||
(a) | During the quarters ended March 31, 2015 and Dec. 31, 2014, the fair value of these loans increased less than $1 million and decreased $3 million, respectively, based on the fair value of the underlying collateral as allowed by ASC 310, Accounting by Creditors for Impairment of a loan, with an offset to the allowance for credit losses. | ||||||||||||||||||||||||||
(b) | Includes other assets received in satisfaction of debt and loans held for sale. Loans held for sale are carried on the balance sheet at the lower of cost or fair value. | ||||||||||||||||||||||||||
Level 3 unobservable inputs | |||||||||||||||||||||||||||
The following tables present the unobservable inputs used in the valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. | |||||||||||||||||||||||||||
Quantitative information about Level 3 fair value measurements of assets | |||||||||||||||||||||||||||
(dollars in millions) | Fair value at | Valuation techniques | Unobservable input | Range | |||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||
Measured on a recurring basis: | |||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||
State and political subdivisions | $ | 11 | Discounted cash flow | Expected credit loss | 1 | % | |||||||||||||||||||||
Trading assets - Derivative assets: | |||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||
Structured foreign exchange swaptions | 3 | Option pricing model (a) | Correlation risk | 0%-25% | |||||||||||||||||||||||
Long-term foreign exchange volatility | 13%-15% | ||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||
Equity options | 3 | Option pricing model (a) | Long-term equity volatility | 21%-22% | |||||||||||||||||||||||
Measured on a nonrecurring basis: | |||||||||||||||||||||||||||
Loans | 2 | Discounted cash flows | Timing of sale | 0-15 months | |||||||||||||||||||||||
Cap rate | 8 | % | |||||||||||||||||||||||||
Cost to complete/sell | 0%-260% | ||||||||||||||||||||||||||
Quantitative information about Level 3 fair value measurements of liabilities | |||||||||||||||||||||||||||
(dollars in millions) | Fair value at | Valuation techniques | Unobservable input | Range | |||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||
Measured on a recurring basis: | |||||||||||||||||||||||||||
Trading liabilities - Derivative liabilities: | |||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||
Structured foreign exchange swaptions | $ | 3 | Option pricing model (a) | Correlation risk | 0%-25% | ||||||||||||||||||||||
Long-term foreign exchange volatility | 13%-15% | ||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||
Equity options | 3 | Option pricing model (a) | Long-term equity volatility | 21%-22% | |||||||||||||||||||||||
(a) | The option pricing model uses market inputs such as foreign currency exchange rates, interest rates and volatility to calculate the fair value of the option. | ||||||||||||||||||||||||||
Estimated fair value of financial instruments | |||||||||||||||||||||||||||
The carrying amounts of our financial instruments (i.e., monetary assets and liabilities) are determined under different accounting methods - see Note 1 of the Notes to Consolidated Financial Statements. The following disclosure discusses these instruments on a uniform fair value basis. However, active markets do not exist for a significant portion of these instruments. For financial instruments where quoted prices from identical assets and liabilities in active markets do not exist, we determine fair value based on discounted cash flow analysis and comparison to similar instruments. Discounted cash flow analysis is dependent upon estimated future cash flows and the level of interest rates. Other judgments would result in different fair values. The fair value information supplements the basic financial statements and other traditional financial data presented throughout this report. | |||||||||||||||||||||||||||
A summary of the practices used for determining fair value and the respective level in the valuation hierarchy for financial assets and liabilities not recorded at fair value follows. | |||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve and other central banks and interest-bearing deposits with banks | |||||||||||||||||||||||||||
The estimated fair value of interest-bearing deposits with the Federal Reserve and other central banks is equal to the book value as these interest-bearing deposits are generally considered cash equivalents. These instruments are classified as Level 2 within the valuation hierarchy. The estimated fair value of interest-bearing deposits with banks is generally determined using discounted cash flows and duration of the instrument to maturity. The primary inputs used to value these transactions are interest rates based on current LIBOR market rates and time to maturity. Interest-bearing deposits with banks are classified as Level 2 within the valuation hierarchy. | |||||||||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | |||||||||||||||||||||||||||
The estimated fair value of federal funds sold and securities purchased under resale agreements is based on inputs such as interest rates and tenors. Federal funds sold and securities purchased under resale agreements are classified as Level 2 within the valuation hierarchy. | |||||||||||||||||||||||||||
Securities held-to-maturity | |||||||||||||||||||||||||||
Where quoted prices are available in an active market for identical assets and liabilities, we classify the securities as Level 1 within the valuation hierarchy. Securities are defined as both long and short positions. Level 1 securities include U.S. Treasury securities. | |||||||||||||||||||||||||||
If quoted market prices are not available for identical assets and liabilities, we estimate fair value using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Examples of such instruments, which would generally be classified as Level 2 within the valuation hierarchy, include certain agency and non-agency mortgage-backed securities, commercial mortgage-backed securities and state and political subdivision securities. For securities where quotes from active markets are not available for identical securities, we determine fair value primarily based on pricing sources with reasonable levels of price transparency that employ financial models or obtain comparison to similar instruments to arrive at “consensus” prices. | |||||||||||||||||||||||||||
Specifically, the pricing sources obtain active market prices for similar types of securities (e.g., vintage, position in the securitization structure) and ascertain variables such as discount rate and speed of prepayment for the types of transaction and apply such variables to similar types of bonds. We view these as observable transactions in the current marketplace and classify such securities as Level 2 within the valuation hierarchy. | |||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||
For residential mortgage loans, fair value is estimated using discounted cash flow analysis, adjusting where appropriate for prepayment estimates, using interest rates currently being offered for loans with similar terms and maturities to borrowers. The estimated fair value of margin loans and overdrafts is equal to the book value due to the short-term nature of these assets. The estimated fair value of other types of loans, including our term loan program, is determined using discounted cash flows. Inputs include current LIBOR market rates adjusted for credit spreads. These loans are generally classified as Level 2 within the valuation hierarchy. | |||||||||||||||||||||||||||
Other financial assets | |||||||||||||||||||||||||||
Other financial assets include cash, the Federal Reserve Bank stock and accrued interest receivable. Cash is classified as Level 1 within the valuation hierarchy. The Federal Reserve Bank stock is not redeemable or transferable. The estimated fair value of the Federal Reserve Bank stock is based on the issue price and is classified as Level 2 within the valuation hierarchy. Accrued interest receivable is generally short-term. As a result, book value is considered to equal fair value. Accrued interest receivable is included as Level 2 within the valuation hierarchy. | |||||||||||||||||||||||||||
Noninterest-bearing and interest-bearing deposits | |||||||||||||||||||||||||||
Interest-bearing deposits are comprised of money market rate and demand deposits, savings deposits and time deposits. Except for time deposits, book value is considered to equal fair value for these deposits due to their short duration to maturity or payable on demand feature. The fair value of interest-bearing time deposits is determined using discounted cash flow analysis. Inputs primarily consist of current LIBOR market rates and time to maturity. For all noninterest-bearing deposits, book value is considered to equal fair value as a result of the short duration of the deposit. Interest-bearing and noninterest-bearing deposits are classified as Level 2 within the valuation hierarchy. | |||||||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | |||||||||||||||||||||||||||
The estimated fair value of federal funds purchased and securities sold under repurchase agreements is based on inputs such as interest rates and tenors. Federal funds purchased and securities sold under repurchase agreements are classified as Level 2 within the valuation hierarchy. | |||||||||||||||||||||||||||
Payables to customers and broker-dealers | |||||||||||||||||||||||||||
The estimated fair value of payables to customers and broker-dealers is equal to the book value, due to the demand feature of the payables to customers and broker-dealers, and are classified as Level 2 within the valuation hierarchy. | |||||||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||||||
Borrowings primarily consist of overdrafts of subcustodian account balances in our Investment Services businesses, commercial paper and accrued interest payable. The estimated fair value of overdrafts of subcustodian account balances in our Investment Services businesses is considered to equal book value as a result of the short duration of the overdrafts and is included as Level 2 within the valuation hierarchy. Overdrafts are typically repaid within two days. The estimated fair value of our commercial paper is based on discount and duration of the commercial paper. Our commercial paper matures within 397 days from date of issue and is not redeemable prior to maturity or subject to voluntary prepayment. Our commercial paper is included in Level 2 of the valuation hierarchy. Accrued interest payable is generally short-term. As a result, book value is considered to equal fair value. Accrued interest payable is included as Level 2 within the valuation hierarchy. | |||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||
The estimated fair value of long-term debt is based on current rates for instruments of the same remaining maturity or quoted market prices for the same or similar issues. Long-term debt is classified as Level 2 within the valuation hierarchy. | |||||||||||||||||||||||||||
The following tables present the estimated fair value and the carrying amount of financial instruments not carried at fair value on the consolidated balance sheet at March 31, 2015 and Dec. 31, 2014, by caption on the consolidated balance sheet and by the valuation hierarchy (as described above). | |||||||||||||||||||||||||||
Summary of financial instruments | 31-Mar-15 | ||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Carrying | ||||||||||||||||||||||
estimated | amount | ||||||||||||||||||||||||||
fair value | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve and other central banks | $ | — | $ | 89,704 | $ | — | $ | 89,704 | $ | 89,704 | |||||||||||||||||
Interest-bearing deposits with banks | — | 18,947 | — | 18,947 | 18,937 | ||||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | — | 28,268 | — | 28,268 | 28,268 | ||||||||||||||||||||||
Securities held-to-maturity | 10,462 | 31,214 | — | 41,676 | 41,237 | ||||||||||||||||||||||
Loans | — | 60,088 | — | 60,088 | 59,906 | ||||||||||||||||||||||
Other financial assets | 7,167 | 1,073 | — | 8,240 | 8,240 | ||||||||||||||||||||||
Total | $ | 17,629 | $ | 229,294 | $ | — | $ | 246,923 | $ | 246,292 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | — | $ | 111,622 | $ | — | $ | 111,622 | $ | 111,622 | |||||||||||||||||
Interest-bearing deposits | — | 168,831 | — | 168,831 | 169,637 | ||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | — | 7,919 | — | 7,919 | 7,919 | ||||||||||||||||||||||
Payables to customers and broker-dealers | — | 21,959 | — | 21,959 | 21,959 | ||||||||||||||||||||||
Borrowings | — | 984 | — | 984 | 984 | ||||||||||||||||||||||
Long-term debt | — | 20,711 | — | 20,711 | 20,046 | ||||||||||||||||||||||
Total | $ | — | $ | 332,026 | $ | — | $ | 332,026 | $ | 332,167 | |||||||||||||||||
Summary of financial instruments | Dec. 31, 2014 | ||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total estimated | Carrying | ||||||||||||||||||||||
fair value | amount | ||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve and other central banks | $ | — | $ | 96,682 | $ | — | $ | 96,682 | $ | 96,682 | |||||||||||||||||
Interest-bearing deposits with banks | — | 19,505 | — | 19,505 | 19,495 | ||||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | — | 20,302 | — | 20,302 | 20,302 | ||||||||||||||||||||||
Securities held-to-maturity | 5,063 | 16,064 | — | 21,127 | 20,933 | ||||||||||||||||||||||
Loans | — | 56,840 | — | 56,840 | 56,749 | ||||||||||||||||||||||
Other financial assets | 6,970 | 1,121 | — | 8,091 | 8,091 | ||||||||||||||||||||||
Total | $ | 12,033 | $ | 210,514 | $ | — | $ | 222,547 | $ | 222,252 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | — | $ | 104,240 | $ | — | $ | 104,240 | $ | 104,240 | |||||||||||||||||
Interest-bearing deposits | — | 160,688 | — | 160,688 | 161,629 | ||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | — | 11,469 | — | 11,469 | 11,469 | ||||||||||||||||||||||
Payables to customers and broker-dealers | — | 21,181 | — | 21,181 | 21,181 | ||||||||||||||||||||||
Borrowings | — | 956 | — | 956 | 956 | ||||||||||||||||||||||
Long-term debt | — | 20,401 | — | 20,401 | 19,917 | ||||||||||||||||||||||
Total | $ | — | $ | 318,935 | $ | — | $ | 318,935 | $ | 319,392 | |||||||||||||||||
The table below summarizes the carrying amount of the hedged financial instruments, the notional amount of the hedge and the unrealized gain (loss) (estimated fair value) of the derivatives. | |||||||||||||||||||||||||||
Hedged financial instruments | Carrying amount | Notional amount of hedge | Unrealized | ||||||||||||||||||||||||
(in millions) | Gain | (Loss) | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||
Securities available-for-sale | $ | 7,233 | $ | 6,966 | $ | 4 | $ | (539 | ) | ||||||||||||||||||
Long-term debt | 16,623 | 16,100 | 568 | (14 | ) | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Securities available-for-sale | $ | 7,294 | $ | 7,045 | $ | 4 | $ | (370 | ) | ||||||||||||||||||
Long-term debt | 16,469 | 16,100 | 470 | (14 | ) | ||||||||||||||||||||||
Fair_Value_Option
Fair Value Option | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Fair Value Disclosures [Abstract] | ||||||||||
Fair Value Option | Fair value option | |||||||||
We elected fair value as an alternative measurement for selected financial assets, financial liabilities, unrecognized firm commitments and written loan commitments. | ||||||||||
The following table presents the assets and liabilities, by type, of consolidated investment management funds recorded at fair value. | ||||||||||
Assets and liabilities of consolidated investment management funds, at fair value | ||||||||||
(in millions) | March 31, 2015 | Dec. 31, 2014 | ||||||||
Assets of consolidated investment management funds: | ||||||||||
Trading assets | $ | 7,852 | $ | 8,678 | ||||||
Other assets | 573 | 604 | ||||||||
Total assets of consolidated investment management funds | $ | 8,425 | $ | 9,282 | ||||||
Liabilities of consolidated investment management funds: | ||||||||||
Trading liabilities | $ | 6,584 | $ | 7,660 | ||||||
Other liabilities | 36 | 9 | ||||||||
Total liabilities of consolidated investment management funds | $ | 6,620 | $ | 7,669 | ||||||
BNY Mellon values assets in consolidated CLOs using observable market prices from the secondary loan market. The returns to the note holders are solely dependent on the assets and accordingly equal the value of those assets. Mark-to-market valuation best reflects the limited interest BNY Mellon has in the economic performance of the consolidated CLOs. Changes in the values of assets and liabilities are reflected in the income statement as investment income of consolidated investment management funds and in the interest of investment management fund noteholders, respectively. | ||||||||||
We have elected the fair value option on $138 million and $21 million of loans at March 31, 2015 and Dec. 31, 2014, respectively. The fair value of these loans was $140 million at March 31, 2015 and $21 million at Dec. 31, 2014. The loans were valued using observable market inputs to discount expected loan cash flows. These loans are included in Level 2 of the valuation hierarchy. | ||||||||||
We have elected the fair value option on $240 million of long-term debt. The fair value of this long-term debt was $355 million at March 31, 2015 and $347 million at Dec. 31, 2014. The long-term debt is valued using observable market inputs and is included in Level 2 of the valuation hierarchy. | ||||||||||
The following table presents the changes in fair value of the loans and long-term debt and the location of the changes in the consolidated income statement. | ||||||||||
Impact of changes in fair value in the income statement (a) | ||||||||||
Quarter ended | ||||||||||
(in millions) | March 31, 2015 | Dec. 31, 2014 | March 31, 2014 | |||||||
Loans: | ||||||||||
Investment and other income | $ | 2 | $ | — | $ | — | ||||
Long-term debt: | ||||||||||
Foreign exchange and other trading revenue | $ | (8 | ) | $ | (10 | ) | $ | (8 | ) | |
(a) | The changes in fair value of the loans and long-term debt are approximately offset by economic hedges included in investment and other income and foreign exchange and other trading revenue. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | |||||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative instruments | |||||||||||||||||||||||||||||||||
We use derivatives to manage exposure to market risk including interest rate risk, equity price risk and foreign currency risk, as well as credit risk. Our trading activities are focused on acting as a market-maker for our customers and facilitating customer trades. Positions managed for our own account are immaterial to our foreign exchange and other trading revenue and to our overall results of operations. | ||||||||||||||||||||||||||||||||||
The notional amounts for derivative financial instruments express the dollar volume of the transactions; however, credit risk is much smaller. We perform credit reviews and enter into netting agreements and collateral arrangements to minimize the credit risk of derivative financial instruments. We enter into offsetting positions to reduce exposure to foreign currency, interest rate and equity price risk. | ||||||||||||||||||||||||||||||||||
Use of derivative financial instruments involves reliance on counterparties. Failure of a counterparty to honor its obligation under a derivative contract is a risk we assume whenever we engage in a derivative contract. Recoveries of less than $1 million were recorded in the first quarter of 2015. There were no counterparty default losses in the first quarter of 2014. | ||||||||||||||||||||||||||||||||||
Hedging derivatives | ||||||||||||||||||||||||||||||||||
We utilize interest rate swap agreements to manage our exposure to interest rate fluctuations. For hedges of available-for-sale investment securities, deposits and long-term debt, the hedge documentation specifies the terms of the hedged items and the interest rate swaps and indicates that the derivative is hedging a fixed rate item and is a fair value hedge, that the hedge exposure is to the changes in the fair value of the hedged item due to changes in benchmark interest rates, and that the strategy is to eliminate fair value variability by converting fixed-rate interest payments to LIBOR. | ||||||||||||||||||||||||||||||||||
The available-for-sale investment securities hedged consist of sovereign debt, U.S. Treasury bonds, agency commercial mortgage-backed securities and covered bonds that had original maturities of 30 years or less at initial purchase. The swaps on all of these investment securities are not callable. All of these securities are hedged with “pay fixed rate, receive variable rate” swaps of similar maturity, repricing and fixed rate coupon. At March 31, 2015, $6.8 billion face amount of securities were hedged with interest rate swaps that had notional values of $7.0 billion. | ||||||||||||||||||||||||||||||||||
The fixed rate long-term debt instruments hedged generally have original maturities of five to 30 years. We issue both callable and non-callable debt. The non-callable debt is hedged with “receive fixed rate, pay variable rate” swaps with similar maturity, repricing and fixed rate coupon. Callable debt is hedged with callable swaps where the call dates of the swaps exactly match the call dates of the debt. At March 31, 2015, $16.1 billion par value of debt was hedged with interest rate swaps that had notional values of $16.1 billion. | ||||||||||||||||||||||||||||||||||
In addition, we enter into foreign exchange hedges. We use forward foreign exchange contracts with maturities of nine months or less to hedge our British Pound, Euro, Hong Kong Dollar, Indian Rupee and Singapore Dollar foreign exchange exposure with respect to foreign currency forecasted revenue and expense transactions in entities that have the U.S. dollar as their functional currency. As of March 31, 2015, the hedged forecasted foreign currency transactions and designated forward foreign exchange contract hedges were $276 million (notional), with a pre-tax loss of $13 million recorded in accumulated other comprehensive income. This loss will be reclassified to income or expense over the next nine months. | ||||||||||||||||||||||||||||||||||
We use forward foreign exchange contracts with remaining maturities of nine months or less as hedges against our foreign exchange exposure to various foreign currencies with respect to certain interest-bearing assets and their associated forecasted interest revenue. These hedges are designated as cash flow hedges. These hedges are effected such that their maturities and notional values match those of the corresponding transaction. As of March 31, 2015, the hedged interest bearing assets and designated forward foreign exchange contract hedges were $150 million (notional), with a pre-tax loss of less than $1 million recorded in accumulated other comprehensive income. This loss will be reclassified to net interest revenue over the next nine months. | ||||||||||||||||||||||||||||||||||
Forward foreign exchange contracts are also used to hedge the value of our net investments in foreign subsidiaries. These forward foreign exchange contracts have maturities of less than two years. The derivatives employed are designated as hedges of changes in value of our foreign investments due to exchange rates. Changes in the value of the forward foreign exchange contracts offset the changes in value of the foreign investments due to changes in foreign exchange rates. The change in fair market value of these forward foreign exchange contracts is deferred and reported within accumulated translation adjustments in shareholders’ equity, net of tax. At March 31, 2015, forward foreign exchange contracts with notional amounts totaling $6.9 billion were designated as hedges. | ||||||||||||||||||||||||||||||||||
In addition to forward foreign exchange contracts, we also designate non-derivative financial instruments as hedges of our net investments in foreign subsidiaries. Those non-derivative financial instruments designated as hedges of our net investments in foreign subsidiaries were all long-term liabilities of BNY Mellon in various currencies, and, at March 31, 2015, had a combined U.S. dollar equivalent value of $497 million. | ||||||||||||||||||||||||||||||||||
Ineffectiveness related to derivatives and hedging relationships was recorded in income as follows: | ||||||||||||||||||||||||||||||||||
Ineffectiveness | Three months ended | |||||||||||||||||||||||||||||||||
(in millions) | March 31, | Dec. 31, 2014 | March 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||
Fair value hedges of securities | $ | 1.4 | $ | (12.9 | ) | $ | (4.9 | ) | ||||||||||||||||||||||||||
Fair value hedges of deposits and long-term debt | (3.7 | ) | (2.6 | ) | (2.8 | ) | ||||||||||||||||||||||||||||
Cash flow hedges | — | — | 0.1 | |||||||||||||||||||||||||||||||
Other (a) | — | — | (0.1 | ) | ||||||||||||||||||||||||||||||
Total | $ | (2.3 | ) | $ | (15.5 | ) | $ | (7.7 | ) | |||||||||||||||||||||||||
(a) | Includes ineffectiveness recorded on foreign exchange hedges. | |||||||||||||||||||||||||||||||||
The following table summarizes the notional amount and credit exposure of our total derivative portfolio at March 31, 2015 and Dec. 31, 2014. | ||||||||||||||||||||||||||||||||||
Impact of derivative instruments on the balance sheet | Notional value | Asset derivatives | Liability derivatives | |||||||||||||||||||||||||||||||
fair value | fair value | |||||||||||||||||||||||||||||||||
(in millions) | 31-Mar-15 | Dec. 31, 2014 | 31-Mar-15 | Dec. 31, 2014 | 31-Mar-15 | Dec. 31, 2014 | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments (a): | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 23,066 | $ | 23,145 | $ | 574 | $ | 477 | $ | 553 | $ | 385 | ||||||||||||||||||||||
Foreign exchange contracts | 7,309 | 7,344 | 464 | 374 | 59 | 62 | ||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 1,038 | $ | 851 | $ | 612 | $ | 447 | ||||||||||||||||||||||||||
Derivatives not designated as hedging instruments (b): | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 689,734 | $ | 731,628 | $ | 17,054 | $ | 17,150 | $ | 17,236 | $ | 17,654 | ||||||||||||||||||||||
Foreign exchange contracts | 593,662 | 528,401 | 6,199 | 6,280 | 6,073 | 6,367 | ||||||||||||||||||||||||||||
Equity contracts | 6,820 | 10,842 | 259 | 377 | 385 | 549 | ||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 23,512 | $ | 23,807 | $ | 23,694 | $ | 24,570 | ||||||||||||||||||||||||||
Total derivatives fair value (c) | $ | 24,550 | $ | 24,658 | $ | 24,306 | $ | 25,017 | ||||||||||||||||||||||||||
Effect of master netting agreements (d) | (17,874 | ) | (18,347 | ) | (16,999 | ) | (17,797 | ) | ||||||||||||||||||||||||||
Fair value after effect of master netting agreements | $ | 6,676 | $ | 6,311 | $ | 7,307 | $ | 7,220 | ||||||||||||||||||||||||||
(a) | The fair value of asset derivatives and liability derivatives designated as hedging instruments is recorded as other assets and other liabilities, respectively, on the balance sheet. | |||||||||||||||||||||||||||||||||
(b) | The fair value of asset derivatives and liability derivatives not designated as hedging instruments is recorded as trading assets and trading liabilities, respectively, on the balance sheet. | |||||||||||||||||||||||||||||||||
(c) | Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815. | |||||||||||||||||||||||||||||||||
(d) | Effect of master netting agreements includes cash collateral received and paid of $1,591 million and $716 million, respectively, at March 31, 2015, and $1,589 million and $1,039 million, respectively, at Dec. 31, 2014. | |||||||||||||||||||||||||||||||||
At March 31, 2015, $263 billion (notional) of interest rate contracts will mature within one year, $244 billion between one and five years, and $206 billion after five years. At March 31, 2015, $587 billion (notional) of foreign exchange contracts will mature within one year, $8 billion between one and five years, and $6 billion after five years. | ||||||||||||||||||||||||||||||||||
Impact of derivative instruments on the income statement | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Derivatives in fair value hedging relationships | Location of gain or | Gain or (loss) recognized in income | Location of gain or(loss) recognized in income on hedged item | Gain or (loss) recognized | ||||||||||||||||||||||||||||||
(loss) recognized in income on derivatives | on derivatives | in hedged item | ||||||||||||||||||||||||||||||||
1Q15 | 4Q14 | 1Q14 | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||||||
Interest rate contracts | Net interest revenue | $ | (151 | ) | $ | (327 | ) | $ | (285 | ) | Net interest revenue | $ | 149 | $ | 312 | $ | 277 | |||||||||||||||||
Derivatives in cash flow hedging | Gain or (loss) recognized | Location of gain or | Gain or (loss) reclassified | Location of gain or | Gain or (loss) recognized in income on derivatives | |||||||||||||||||||||||||||||
relationships | in accumulated | (loss) reclassified | from accumulated | (loss) recognized in | (ineffectiveness portion and amount excluded from effectiveness testing) | |||||||||||||||||||||||||||||
OCI on derivatives(effective portion) | from accumulated | OCI into income | income on derivatives | |||||||||||||||||||||||||||||||
OCI into income | (effective portion) | (ineffective portion and | ||||||||||||||||||||||||||||||||
(effective portion) | amount excluded from | |||||||||||||||||||||||||||||||||
1Q15 | 4Q14 | 1Q14 | 1Q15 | 4Q14 | 1Q14 | effectiveness testing) | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||
FX contracts | $ | (1 | ) | $ | — | $ | (1 | ) | Net interest revenue | $ | (1 | ) | $ | — | $ | (1 | ) | Net interest revenue | $ | — | $ | — | $ | — | ||||||||||
FX contracts | — | (4 | ) | 3 | Other revenue | — | (5 | ) | — | Other revenue | — | — | 0.1 | |||||||||||||||||||||
FX contracts | 12 | 10 | 3 | Trading revenue | 12 | 10 | 3 | Trading revenue | — | — | — | |||||||||||||||||||||||
FX contracts | (9 | ) | (2 | ) | 1 | Salary expense | (8 | ) | 2 | 2 | Salary expense | — | — | — | ||||||||||||||||||||
Total | $ | 2 | $ | 4 | $ | 6 | $ | 3 | $ | 7 | $ | 4 | $ | — | $ | — | $ | 0.1 | ||||||||||||||||
Derivatives in net | Gain or (loss) recognized in accumulated OCI | Location of gain or | Gain or (loss) reclassified | Location of gain or | Gain or (loss) | |||||||||||||||||||||||||||||
investment hedging | on derivatives | (loss) reclassified | from accumulated | (loss) recognized in | recognized in income on | |||||||||||||||||||||||||||||
relationships | (effective portion) | from accumulated | OCI into income | income on derivative | derivatives | |||||||||||||||||||||||||||||
OCI into income | (effective portion) | (ineffective portion and | (ineffectiveness portion and amount excluded from | |||||||||||||||||||||||||||||||
(effective portion) | amount excluded from | effectiveness testing) | ||||||||||||||||||||||||||||||||
1Q15 | 4Q14 | 1Q14 | 1Q15 | 4Q14 | 1Q14 | effectiveness testing) | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||
FX contracts | $ | 368 | $ | (530 | ) | $ | (16 | ) | Net interest revenue | $ | — | $ | — | $ | — | Other revenue | $ | — | $ | — | $ | (0.1 | ) | |||||||||||
Trading activities (including trading derivatives) | ||||||||||||||||||||||||||||||||||
We manage trading risk through a system of position limits, a VaR methodology based on Monte Carlo simulations, stop loss advisory triggers, and other market sensitivity measures. Risk is monitored and reported to senior management by a separate unit on a daily basis. Based on certain assumptions, the VaR methodology is designed to capture the potential overnight pre-tax dollar loss from adverse changes in fair values of all trading positions. The calculation assumes a one-day holding period for most instruments, utilizes a 99% confidence level, and incorporates the non-linear characteristics of options. The VaR model is one of several statistical models used to develop economic capital results, which is allocated to lines of business for computing risk-adjusted performance. | ||||||||||||||||||||||||||||||||||
As the VaR methodology does not evaluate risk attributable to extraordinary financial, economic or other occurrences, the risk assessment process includes a number of stress scenarios based upon the risk factors in the portfolio and management’s assessment of market conditions. Additional stress scenarios based upon historical market events are also performed. Stress tests, by their design, incorporate the impact of reduced liquidity and the breakdown of observed correlations. The results of these stress tests are reviewed weekly with senior management. | ||||||||||||||||||||||||||||||||||
Revenue from foreign exchange and other trading included the following: | ||||||||||||||||||||||||||||||||||
Foreign exchange and other trading revenue | ||||||||||||||||||||||||||||||||||
(in millions) | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||||||||
Foreign exchange | $ | 217 | $ | 165 | $ | 130 | ||||||||||||||||||||||||||||
Other trading revenue (loss): | ||||||||||||||||||||||||||||||||||
Fixed income | 11 | (18 | ) | 1 | ||||||||||||||||||||||||||||||
Equity/other | 1 | 4 | 5 | |||||||||||||||||||||||||||||||
Total other trading revenue (loss) | 12 | (14 | ) | 6 | ||||||||||||||||||||||||||||||
Total foreign exchange and other trading revenue | $ | 229 | $ | 151 | $ | 136 | ||||||||||||||||||||||||||||
Foreign exchange includes income from purchasing and selling foreign currencies and currency forwards, futures and options. Fixed income reflects results from futures and forward contracts, interest rate swaps, structured foreign currency swaps, options, and fixed income securities. Equity/other primarily includes revenue from equity securities and equity derivatives. | ||||||||||||||||||||||||||||||||||
Counterparty credit risk and collateral | ||||||||||||||||||||||||||||||||||
We assess credit risk of our counterparties through regular examination of their financial statements, confidential communication with the management of those counterparties and regular monitoring of publicly available credit rating information. This and other information is used to develop proprietary credit rating metrics used to assess credit quality. | ||||||||||||||||||||||||||||||||||
Collateral requirements are determined after a comprehensive review of the credit quality of each counterparty. Collateral is generally held or pledged in the form of cash or highly liquid government securities. Collateral requirements are monitored and adjusted daily. | ||||||||||||||||||||||||||||||||||
Additional disclosures concerning derivative financial instruments are provided in Note 14 of the Notes to Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||||
Disclosure of contingent features in over-the-counter (“OTC”) derivative instruments | ||||||||||||||||||||||||||||||||||
Certain OTC derivative contracts and/or collateral agreements of The Bank of New York Mellon, our largest banking subsidiary and the subsidiary through which BNY Mellon enters into the substantial majority of all of its OTC derivative contracts and/or collateral agreements, contain provisions that may require us to take certain actions if The Bank of New York Mellon's public debt rating fell to a certain level. Early termination provisions, or “close-out” agreements, in those contracts could trigger immediate payment of outstanding contracts that are in net liability positions. Certain collateral agreements would require The Bank of New York Mellon to immediately post additional collateral to cover some or all of The Bank of New York Mellon's liabilities to a counterparty. | ||||||||||||||||||||||||||||||||||
The following table shows the fair value of contracts falling under early termination provisions that were in net liability positions as of March 31, 2015 for three key ratings triggers: | ||||||||||||||||||||||||||||||||||
If The Bank of New York Mellon’s rating was changed to (Moody’s/S&P) | Potential close-out exposures (fair value) (a) | |||||||||||||||||||||||||||||||||
A3/A- | $ | 146 | million | |||||||||||||||||||||||||||||||
Baa2/BBB | $ | 1,338 | million | |||||||||||||||||||||||||||||||
Ba1/BB+ | $ | 3,014 | million | |||||||||||||||||||||||||||||||
(a) | The amounts represent potential total close-out values if The Bank of New York Mellon’s rating were to immediately drop to the indicated levels. | |||||||||||||||||||||||||||||||||
The aggregated fair value of contracts impacting potential trade close-out amounts and collateral obligations can fluctuate from quarter to quarter due to changes in market conditions, changes in the composition of counterparty trades, new business, or changes to the agreement definitions establishing close-out or collateral obligations. | ||||||||||||||||||||||||||||||||||
Additionally, if The Bank of New York Mellon’s debt rating had fallen below investment grade on March 31, 2015, existing collateral arrangements would have required us to have posted an additional $354 million of collateral. | ||||||||||||||||||||||||||||||||||
Derivative instruments | ||||||||||||||||||||||||||||||||||
We use derivatives to manage exposure to market risk including interest rate risk, equity price risk and foreign currency risk, as well as credit risk. Our trading activities are focused on acting as a market-maker for our customers and facilitating customer trades. Positions managed for our own account are immaterial to our foreign exchange and other trading revenue and to our overall results of operations. | ||||||||||||||||||||||||||||||||||
The notional amounts for derivative financial instruments express the dollar volume of the transactions; however, credit risk is much smaller. We perform credit reviews and enter into netting agreements and collateral arrangements to minimize the credit risk of derivative financial instruments. We enter into offsetting positions to reduce exposure to foreign currency, interest rate and equity price risk. | ||||||||||||||||||||||||||||||||||
Use of derivative financial instruments involves reliance on counterparties. Failure of a counterparty to honor its obligation under a derivative contract is a risk we assume whenever we engage in a derivative contract. Recoveries of less than $1 million were recorded in the first quarter of 2015. There were no counterparty default losses in the first quarter of 2014. | ||||||||||||||||||||||||||||||||||
Hedging derivatives | ||||||||||||||||||||||||||||||||||
We utilize interest rate swap agreements to manage our exposure to interest rate fluctuations. For hedges of available-for-sale investment securities, deposits and long-term debt, the hedge documentation specifies the terms of the hedged items and the interest rate swaps and indicates that the derivative is hedging a fixed rate item and is a fair value hedge, that the hedge exposure is to the changes in the fair value of the hedged item due to changes in benchmark interest rates, and that the strategy is to eliminate fair value variability by converting fixed-rate interest payments to LIBOR. | ||||||||||||||||||||||||||||||||||
The available-for-sale investment securities hedged consist of sovereign debt, U.S. Treasury bonds, agency commercial mortgage-backed securities and covered bonds that had original maturities of 30 years or less at initial purchase. The swaps on all of these investment securities are not callable. All of these securities are hedged with “pay fixed rate, receive variable rate” swaps of similar maturity, repricing and fixed rate coupon. At March 31, 2015, $6.8 billion face amount of securities were hedged with interest rate swaps that had notional values of $7.0 billion. | ||||||||||||||||||||||||||||||||||
The fixed rate long-term debt instruments hedged generally have original maturities of five to 30 years. We issue both callable and non-callable debt. The non-callable debt is hedged with “receive fixed rate, pay variable rate” swaps with similar maturity, repricing and fixed rate coupon. Callable debt is hedged with callable swaps where the call dates of the swaps exactly match the call dates of the debt. At March 31, 2015, $16.1 billion par value of debt was hedged with interest rate swaps that had notional values of $16.1 billion. | ||||||||||||||||||||||||||||||||||
In addition, we enter into foreign exchange hedges. We use forward foreign exchange contracts with maturities of nine months or less to hedge our British Pound, Euro, Hong Kong Dollar, Indian Rupee and Singapore Dollar foreign exchange exposure with respect to foreign currency forecasted revenue and expense transactions in entities that have the U.S. dollar as their functional currency. As of March 31, 2015, the hedged forecasted foreign currency transactions and designated forward foreign exchange contract hedges were $276 million (notional), with a pre-tax loss of $13 million recorded in accumulated other comprehensive income. This loss will be reclassified to income or expense over the next nine months. | ||||||||||||||||||||||||||||||||||
We use forward foreign exchange contracts with remaining maturities of nine months or less as hedges against our foreign exchange exposure to various foreign currencies with respect to certain interest-bearing assets and their associated forecasted interest revenue. These hedges are designated as cash flow hedges. These hedges are effected such that their maturities and notional values match those of the corresponding transaction. As of March 31, 2015, the hedged interest bearing assets and designated forward foreign exchange contract hedges were $150 million (notional), with a pre-tax loss of less than $1 million recorded in accumulated other comprehensive income. This loss will be reclassified to net interest revenue over the next nine months. | ||||||||||||||||||||||||||||||||||
Forward foreign exchange contracts are also used to hedge the value of our net investments in foreign subsidiaries. These forward foreign exchange contracts have maturities of less than two years. The derivatives employed are designated as hedges of changes in value of our foreign investments due to exchange rates. Changes in the value of the forward foreign exchange contracts offset the changes in value of the foreign investments due to changes in foreign exchange rates. The change in fair market value of these forward foreign exchange contracts is deferred and reported within accumulated translation adjustments in shareholders’ equity, net of tax. At March 31, 2015, forward foreign exchange contracts with notional amounts totaling $6.9 billion were designated as hedges. | ||||||||||||||||||||||||||||||||||
In addition to forward foreign exchange contracts, we also designate non-derivative financial instruments as hedges of our net investments in foreign subsidiaries. Those non-derivative financial instruments designated as hedges of our net investments in foreign subsidiaries were all long-term liabilities of BNY Mellon in various currencies, and, at March 31, 2015, had a combined U.S. dollar equivalent value of $497 million. | ||||||||||||||||||||||||||||||||||
Ineffectiveness related to derivatives and hedging relationships was recorded in income as follows: | ||||||||||||||||||||||||||||||||||
Ineffectiveness | Three months ended | |||||||||||||||||||||||||||||||||
(in millions) | March 31, | Dec. 31, 2014 | March 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||
Fair value hedges of securities | $ | 1.4 | $ | (12.9 | ) | $ | (4.9 | ) | ||||||||||||||||||||||||||
Fair value hedges of deposits and long-term debt | (3.7 | ) | (2.6 | ) | (2.8 | ) | ||||||||||||||||||||||||||||
Cash flow hedges | — | — | 0.1 | |||||||||||||||||||||||||||||||
Other (a) | — | — | (0.1 | ) | ||||||||||||||||||||||||||||||
Total | $ | (2.3 | ) | $ | (15.5 | ) | $ | (7.7 | ) | |||||||||||||||||||||||||
(a) | Includes ineffectiveness recorded on foreign exchange hedges. | |||||||||||||||||||||||||||||||||
The following table summarizes the notional amount and credit exposure of our total derivative portfolio at March 31, 2015 and Dec. 31, 2014. | ||||||||||||||||||||||||||||||||||
Impact of derivative instruments on the balance sheet | Notional value | Asset derivatives | Liability derivatives | |||||||||||||||||||||||||||||||
fair value | fair value | |||||||||||||||||||||||||||||||||
(in millions) | 31-Mar-15 | Dec. 31, 2014 | 31-Mar-15 | Dec. 31, 2014 | 31-Mar-15 | Dec. 31, 2014 | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments (a): | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 23,066 | $ | 23,145 | $ | 574 | $ | 477 | $ | 553 | $ | 385 | ||||||||||||||||||||||
Foreign exchange contracts | 7,309 | 7,344 | 464 | 374 | 59 | 62 | ||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 1,038 | $ | 851 | $ | 612 | $ | 447 | ||||||||||||||||||||||||||
Derivatives not designated as hedging instruments (b): | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 689,734 | $ | 731,628 | $ | 17,054 | $ | 17,150 | $ | 17,236 | $ | 17,654 | ||||||||||||||||||||||
Foreign exchange contracts | 593,662 | 528,401 | 6,199 | 6,280 | 6,073 | 6,367 | ||||||||||||||||||||||||||||
Equity contracts | 6,820 | 10,842 | 259 | 377 | 385 | 549 | ||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 23,512 | $ | 23,807 | $ | 23,694 | $ | 24,570 | ||||||||||||||||||||||||||
Total derivatives fair value (c) | $ | 24,550 | $ | 24,658 | $ | 24,306 | $ | 25,017 | ||||||||||||||||||||||||||
Effect of master netting agreements (d) | (17,874 | ) | (18,347 | ) | (16,999 | ) | (17,797 | ) | ||||||||||||||||||||||||||
Fair value after effect of master netting agreements | $ | 6,676 | $ | 6,311 | $ | 7,307 | $ | 7,220 | ||||||||||||||||||||||||||
(a) | The fair value of asset derivatives and liability derivatives designated as hedging instruments is recorded as other assets and other liabilities, respectively, on the balance sheet. | |||||||||||||||||||||||||||||||||
(b) | The fair value of asset derivatives and liability derivatives not designated as hedging instruments is recorded as trading assets and trading liabilities, respectively, on the balance sheet. | |||||||||||||||||||||||||||||||||
(c) | Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815. | |||||||||||||||||||||||||||||||||
(d) | Effect of master netting agreements includes cash collateral received and paid of $1,591 million and $716 million, respectively, at March 31, 2015, and $1,589 million and $1,039 million, respectively, at Dec. 31, 2014. | |||||||||||||||||||||||||||||||||
At March 31, 2015, $263 billion (notional) of interest rate contracts will mature within one year, $244 billion between one and five years, and $206 billion after five years. At March 31, 2015, $587 billion (notional) of foreign exchange contracts will mature within one year, $8 billion between one and five years, and $6 billion after five years. | ||||||||||||||||||||||||||||||||||
Impact of derivative instruments on the income statement | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Derivatives in fair value hedging relationships | Location of gain or | Gain or (loss) recognized in income | Location of gain or(loss) recognized in income on hedged item | Gain or (loss) recognized | ||||||||||||||||||||||||||||||
(loss) recognized in income on derivatives | on derivatives | in hedged item | ||||||||||||||||||||||||||||||||
1Q15 | 4Q14 | 1Q14 | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||||||
Interest rate contracts | Net interest revenue | $ | (151 | ) | $ | (327 | ) | $ | (285 | ) | Net interest revenue | $ | 149 | $ | 312 | $ | 277 | |||||||||||||||||
Derivatives in cash flow hedging | Gain or (loss) recognized | Location of gain or | Gain or (loss) reclassified | Location of gain or | Gain or (loss) recognized in income on derivatives | |||||||||||||||||||||||||||||
relationships | in accumulated | (loss) reclassified | from accumulated | (loss) recognized in | (ineffectiveness portion and amount excluded from effectiveness testing) | |||||||||||||||||||||||||||||
OCI on derivatives(effective portion) | from accumulated | OCI into income | income on derivatives | |||||||||||||||||||||||||||||||
OCI into income | (effective portion) | (ineffective portion and | ||||||||||||||||||||||||||||||||
(effective portion) | amount excluded from | |||||||||||||||||||||||||||||||||
1Q15 | 4Q14 | 1Q14 | 1Q15 | 4Q14 | 1Q14 | effectiveness testing) | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||
FX contracts | $ | (1 | ) | $ | — | $ | (1 | ) | Net interest revenue | $ | (1 | ) | $ | — | $ | (1 | ) | Net interest revenue | $ | — | $ | — | $ | — | ||||||||||
FX contracts | — | (4 | ) | 3 | Other revenue | — | (5 | ) | — | Other revenue | — | — | 0.1 | |||||||||||||||||||||
FX contracts | 12 | 10 | 3 | Trading revenue | 12 | 10 | 3 | Trading revenue | — | — | — | |||||||||||||||||||||||
FX contracts | (9 | ) | (2 | ) | 1 | Salary expense | (8 | ) | 2 | 2 | Salary expense | — | — | — | ||||||||||||||||||||
Total | $ | 2 | $ | 4 | $ | 6 | $ | 3 | $ | 7 | $ | 4 | $ | — | $ | — | $ | 0.1 | ||||||||||||||||
Derivatives in net | Gain or (loss) recognized in accumulated OCI | Location of gain or | Gain or (loss) reclassified | Location of gain or | Gain or (loss) | |||||||||||||||||||||||||||||
investment hedging | on derivatives | (loss) reclassified | from accumulated | (loss) recognized in | recognized in income on | |||||||||||||||||||||||||||||
relationships | (effective portion) | from accumulated | OCI into income | income on derivative | derivatives | |||||||||||||||||||||||||||||
OCI into income | (effective portion) | (ineffective portion and | (ineffectiveness portion and amount excluded from | |||||||||||||||||||||||||||||||
(effective portion) | amount excluded from | effectiveness testing) | ||||||||||||||||||||||||||||||||
1Q15 | 4Q14 | 1Q14 | 1Q15 | 4Q14 | 1Q14 | effectiveness testing) | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||
FX contracts | $ | 368 | $ | (530 | ) | $ | (16 | ) | Net interest revenue | $ | — | $ | — | $ | — | Other revenue | $ | — | $ | — | $ | (0.1 | ) | |||||||||||
Trading activities (including trading derivatives) | ||||||||||||||||||||||||||||||||||
We manage trading risk through a system of position limits, a VaR methodology based on Monte Carlo simulations, stop loss advisory triggers, and other market sensitivity measures. Risk is monitored and reported to senior management by a separate unit on a daily basis. Based on certain assumptions, the VaR methodology is designed to capture the potential overnight pre-tax dollar loss from adverse changes in fair values of all trading positions. The calculation assumes a one-day holding period for most instruments, utilizes a 99% confidence level, and incorporates the non-linear characteristics of options. The VaR model is one of several statistical models used to develop economic capital results, which is allocated to lines of business for computing risk-adjusted performance. | ||||||||||||||||||||||||||||||||||
As the VaR methodology does not evaluate risk attributable to extraordinary financial, economic or other occurrences, the risk assessment process includes a number of stress scenarios based upon the risk factors in the portfolio and management’s assessment of market conditions. Additional stress scenarios based upon historical market events are also performed. Stress tests, by their design, incorporate the impact of reduced liquidity and the breakdown of observed correlations. The results of these stress tests are reviewed weekly with senior management. | ||||||||||||||||||||||||||||||||||
Revenue from foreign exchange and other trading included the following: | ||||||||||||||||||||||||||||||||||
Foreign exchange and other trading revenue | ||||||||||||||||||||||||||||||||||
(in millions) | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||||||||
Foreign exchange | $ | 217 | $ | 165 | $ | 130 | ||||||||||||||||||||||||||||
Other trading revenue (loss): | ||||||||||||||||||||||||||||||||||
Fixed income | 11 | (18 | ) | 1 | ||||||||||||||||||||||||||||||
Equity/other | 1 | 4 | 5 | |||||||||||||||||||||||||||||||
Total other trading revenue (loss) | 12 | (14 | ) | 6 | ||||||||||||||||||||||||||||||
Total foreign exchange and other trading revenue | $ | 229 | $ | 151 | $ | 136 | ||||||||||||||||||||||||||||
Foreign exchange includes income from purchasing and selling foreign currencies and currency forwards, futures and options. Fixed income reflects results from futures and forward contracts, interest rate swaps, structured foreign currency swaps, options, and fixed income securities. Equity/other primarily includes revenue from equity securities and equity derivatives. | ||||||||||||||||||||||||||||||||||
Counterparty credit risk and collateral | ||||||||||||||||||||||||||||||||||
We assess credit risk of our counterparties through regular examination of their financial statements, confidential communication with the management of those counterparties and regular monitoring of publicly available credit rating information. This and other information is used to develop proprietary credit rating metrics used to assess credit quality. | ||||||||||||||||||||||||||||||||||
Collateral requirements are determined after a comprehensive review of the credit quality of each counterparty. Collateral is generally held or pledged in the form of cash or highly liquid government securities. Collateral requirements are monitored and adjusted daily. | ||||||||||||||||||||||||||||||||||
Additional disclosures concerning derivative financial instruments are provided in Note 14 of the Notes to Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||||
Disclosure of contingent features in over-the-counter (“OTC”) derivative instruments | ||||||||||||||||||||||||||||||||||
Certain OTC derivative contracts and/or collateral agreements of The Bank of New York Mellon, our largest banking subsidiary and the subsidiary through which BNY Mellon enters into the substantial majority of all of its OTC derivative contracts and/or collateral agreements, contain provisions that may require us to take certain actions if The Bank of New York Mellon's public debt rating fell to a certain level. Early termination provisions, or “close-out” agreements, in those contracts could trigger immediate payment of outstanding contracts that are in net liability positions. Certain collateral agreements would require The Bank of New York Mellon to immediately post additional collateral to cover some or all of The Bank of New York Mellon's liabilities to a counterparty. | ||||||||||||||||||||||||||||||||||
The following table shows the fair value of contracts falling under early termination provisions that were in net liability positions as of March 31, 2015 for three key ratings triggers: | ||||||||||||||||||||||||||||||||||
If The Bank of New York Mellon’s rating was changed to (Moody’s/S&P) | Potential close-out exposures (fair value) (a) | |||||||||||||||||||||||||||||||||
A3/A- | $ | 146 | million | |||||||||||||||||||||||||||||||
Baa2/BBB | $ | 1,338 | million | |||||||||||||||||||||||||||||||
Ba1/BB+ | $ | 3,014 | million | |||||||||||||||||||||||||||||||
(a) | The amounts represent potential total close-out values if The Bank of New York Mellon’s rating were to immediately drop to the indicated levels. | |||||||||||||||||||||||||||||||||
The aggregated fair value of contracts impacting potential trade close-out amounts and collateral obligations can fluctuate from quarter to quarter due to changes in market conditions, changes in the composition of counterparty trades, new business, or changes to the agreement definitions establishing close-out or collateral obligations. | ||||||||||||||||||||||||||||||||||
Additionally, if The Bank of New York Mellon’s debt rating had fallen below investment grade on March 31, 2015, existing collateral arrangements would have required us to have posted an additional $354 million of collateral. | ||||||||||||||||||||||||||||||||||
Offsetting assets and liabilities | ||||||||||||||||||||||||||||||||||
The following tables present derivative instruments and financial instruments that are either subject to an enforceable netting agreement or offset by collateral arrangements. There were no derivative instruments or financial instruments subject to a netting agreement for which we are not currently netting. | ||||||||||||||||||||||||||||||||||
Offsetting of derivative assets and financial assets at March 31, 2015 | ||||||||||||||||||||||||||||||||||
Gross assets recognized | Gross amounts offset in the balance sheet | Net assets recognized on the balance sheet | Gross amounts not offset in the balance sheet | |||||||||||||||||||||||||||||||
(in millions) | (a) | Financial instruments | Cash collateral received | Net amount | ||||||||||||||||||||||||||||||
Derivatives subject to netting arrangements: | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 15,004 | $ | 13,365 | $ | 1,639 | $ | 399 | $ | — | $ | 1,240 | ||||||||||||||||||||||
Foreign exchange contracts | 5,245 | 4,391 | 854 | 90 | — | 764 | ||||||||||||||||||||||||||||
Equity contracts | 237 | 118 | 119 | — | — | 119 | ||||||||||||||||||||||||||||
Total derivatives subject to netting arrangements | 20,486 | 17,874 | 2,612 | 489 | — | 2,123 | ||||||||||||||||||||||||||||
Total derivatives not subject to netting arrangements | 4,064 | — | 4,064 | — | — | 4,064 | ||||||||||||||||||||||||||||
Total derivatives | 24,550 | 17,874 | 6,676 | 489 | — | 6,187 | ||||||||||||||||||||||||||||
Reverse repurchase agreements | 20,750 | 2,020 | (b) | 18,730 | 18,728 | — | 2 | |||||||||||||||||||||||||||
Securities borrowing | 9,252 | — | 9,252 | 8,952 | — | 300 | ||||||||||||||||||||||||||||
Total | $ | 54,552 | $ | 19,894 | $ | 34,658 | $ | 28,169 | $ | — | $ | 6,489 | ||||||||||||||||||||||
(a) | Includes the effect of netting agreements and net cash collateral received. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions. | |||||||||||||||||||||||||||||||||
(b) | Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. | |||||||||||||||||||||||||||||||||
Offsetting of derivative assets and financial assets at Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
Gross assets recognized | Gross amounts offset in the balance sheet | Net assets recognized | Gross amounts not offset in the balance sheet | |||||||||||||||||||||||||||||||
on the | ||||||||||||||||||||||||||||||||||
(in millions) | (a) | balance sheet | Financial instruments | Cash collateral received | Net amount | |||||||||||||||||||||||||||||
Derivatives subject to netting arrangements: | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 15,457 | $ | 13,942 | $ | 1,515 | $ | 408 | $ | — | $ | 1,107 | ||||||||||||||||||||||
Foreign exchange contracts | 5,291 | 4,246 | 1,045 | 176 | — | 869 | ||||||||||||||||||||||||||||
Equity contracts | 303 | 159 | 144 | 6 | — | 138 | ||||||||||||||||||||||||||||
Total derivatives subject to netting arrangements | 21,051 | 18,347 | 2,704 | 590 | — | 2,114 | ||||||||||||||||||||||||||||
Total derivatives not subject to netting arrangements | 3,607 | — | 3,607 | — | — | 3,607 | ||||||||||||||||||||||||||||
Total derivatives | 24,658 | 18,347 | 6,311 | 590 | — | 5,721 | ||||||||||||||||||||||||||||
Reverse repurchase agreements | 11,634 | 434 | (b) | 11,200 | 11,198 | — | 2 | |||||||||||||||||||||||||||
Securities borrowing | 9,033 | — | 9,033 | 8,733 | — | 300 | ||||||||||||||||||||||||||||
Total | $ | 45,325 | $ | 18,781 | $ | 26,544 | $ | 20,521 | $ | — | $ | 6,023 | ||||||||||||||||||||||
(a) | Includes the effect of netting agreements and net cash collateral received. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions. | |||||||||||||||||||||||||||||||||
(b) | Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. | |||||||||||||||||||||||||||||||||
Offsetting of derivative liabilities and financial liabilities at March 31, 2015 | ||||||||||||||||||||||||||||||||||
Gross liabilities recognized | Gross amounts offset in the balance sheet | Net liabilities recognized on the balance sheet | Gross amounts not offset in the balance sheet | |||||||||||||||||||||||||||||||
(in millions) | (a) | Financial instruments | Cash collateral pledged | Net amount | ||||||||||||||||||||||||||||||
Derivatives subject to netting arrangements: | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 16,238 | $ | 13,836 | $ | 2,402 | $ | 2,069 | $ | — | $ | 333 | ||||||||||||||||||||||
Foreign exchange contracts | 3,954 | 3,044 | 910 | 267 | — | 643 | ||||||||||||||||||||||||||||
Equity contracts | 335 | 119 | 216 | 191 | — | 25 | ||||||||||||||||||||||||||||
Total derivatives subject to netting arrangements | 20,527 | 16,999 | 3,528 | 2,527 | — | 1,001 | ||||||||||||||||||||||||||||
Total derivatives not subject to netting arrangements | 3,779 | — | 3,779 | — | — | 3,779 | ||||||||||||||||||||||||||||
Total derivatives | 24,306 | 16,999 | 7,307 | 2,527 | — | 4,780 | ||||||||||||||||||||||||||||
Repurchase agreements | 7,743 | 2,020 | (b) | 5,723 | 5,721 | — | 2 | |||||||||||||||||||||||||||
Securities lending | 2,142 | — | 2,142 | 2,061 | — | 81 | ||||||||||||||||||||||||||||
Total | $ | 34,191 | $ | 19,019 | $ | 15,172 | $ | 10,309 | $ | — | $ | 4,863 | ||||||||||||||||||||||
(a) | Includes the effect of netting agreements and net cash collateral paid. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions. | |||||||||||||||||||||||||||||||||
(b) | Offsetting of repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. | |||||||||||||||||||||||||||||||||
Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
Gross liabilities recognized | Gross amounts offset in the balance sheet | Net liabilities recognized | Gross amounts not offset in the balance sheet | |||||||||||||||||||||||||||||||
on the | ||||||||||||||||||||||||||||||||||
(in millions) | (a) | balance sheet | Financial instruments | Cash collateral pledged | Net amount | |||||||||||||||||||||||||||||
Derivatives subject to netting arrangements: | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 16,884 | $ | 14,467 | $ | 2,417 | $ | 1,815 | $ | — | $ | 602 | ||||||||||||||||||||||
Foreign exchange contracts | 4,241 | 3,149 | 1,092 | 399 | — | 693 | ||||||||||||||||||||||||||||
Equity contracts | 481 | 181 | 300 | 250 | — | 50 | ||||||||||||||||||||||||||||
Total derivatives subject to netting arrangements | 21,606 | 17,797 | 3,809 | 2,464 | — | 1,345 | ||||||||||||||||||||||||||||
Total derivatives not subject to netting arrangements | 3,411 | — | 3,411 | — | — | 3,411 | ||||||||||||||||||||||||||||
Total derivatives | 25,017 | 17,797 | 7,220 | 2,464 | — | 4,756 | ||||||||||||||||||||||||||||
Repurchase agreements | 9,160 | 434 | (b) | 8,726 | 8,722 | — | 4 | |||||||||||||||||||||||||||
Securities lending | 2,571 | — | 2,571 | 2,494 | — | 77 | ||||||||||||||||||||||||||||
Total | $ | 36,748 | $ | 18,231 | $ | 18,517 | $ | 13,680 | $ | — | $ | 4,837 | ||||||||||||||||||||||
(a) | Includes the effect of netting agreements and net cash collateral paid. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions. | |||||||||||||||||||||||||||||||||
(b) | Offsetting of repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
Commitments and Contingent Liabilities | Commitments and contingent liabilities | |||||||||
In the normal course of business, various commitments and contingent liabilities are outstanding that are not reflected in the accompanying consolidated balance sheets. | ||||||||||
Our significant trading and off-balance sheet risks are securities, foreign currency and interest rate risk management products, commercial lending commitments, letters of credit and securities lending indemnifications. We assume these risks to reduce interest rate and foreign currency risks, to provide customers with the ability to meet credit and liquidity needs and to hedge foreign currency and interest rate risks. These items involve, to varying degrees, credit, foreign currency and interest rate risk not recognized in the balance sheet. Our off-balance sheet risks are managed and monitored in manners similar to those used for on-balance sheet risks. Significant industry concentrations related to credit exposure at March 31, 2015 are disclosed in the financial institutions portfolio exposure table and the commercial portfolio exposure table below. | ||||||||||
Financial institutions | 31-Mar-15 | |||||||||
portfolio exposure | ||||||||||
(in billions) | Loans | Unfunded | Total | |||||||
commitments | exposure | |||||||||
Banks | $ | 9.1 | $ | 1.7 | $ | 10.8 | ||||
Asset managers | 1.7 | 5.1 | 6.8 | |||||||
Securities industry | 3.3 | 1.1 | 4.4 | |||||||
Insurance | 0.1 | 3.9 | 4 | |||||||
Government | 0.1 | 3 | 3.1 | |||||||
Other | 0.4 | 1.2 | 1.6 | |||||||
Total | $ | 14.7 | $ | 16 | $ | 30.7 | ||||
Commercial portfolio | 31-Mar-15 | |||||||||
exposure | ||||||||||
(in billions) | Loans | Unfunded | Total | |||||||
commitments | exposure | |||||||||
Services and other | $ | 0.8 | $ | 6 | $ | 6.8 | ||||
Manufacturing | 0.4 | 5.7 | 6.1 | |||||||
Energy and utilities | 0.5 | 5.5 | 6 | |||||||
Media and telecom | 0.3 | 1.5 | 1.8 | |||||||
Total | $ | 2 | $ | 18.7 | $ | 20.7 | ||||
Major concentrations in securities lending are primarily to broker-dealers and are generally collateralized with cash. Securities lending transactions are discussed below. | ||||||||||
The following table presents a summary of our off-balance sheet credit risks, net of participations. | ||||||||||
Off-balance sheet credit risks | March 31, | Dec. 31, | ||||||||
(in millions) | 2015 | 2014 | ||||||||
Lending commitments | $ | 34,166 | $ | 33,273 | ||||||
Standby letters of credit (a) | 5,600 | 5,767 | ||||||||
Commercial letters of credit | 264 | 255 | ||||||||
Securities lending indemnifications (b) | 310,273 | 304,386 | ||||||||
(a) | Net of participations totaling $961 million at March 31, 2015 and $894 million at Dec. 31, 2014. | |||||||||
(b) | Excludes the indemnification for securities for which BNY Mellon acts as an agent on behalf of CIBC Mellon clients, which totaled $68 billion at March 31, 2015 and $64 billion at Dec. 31, 2014. | |||||||||
Included in lending commitments are facilities that provide liquidity for variable rate tax-exempt securities wrapped by monoline insurers. The credit approval for these facilities is based on an assessment of the underlying tax-exempt issuer and considers factors other than the financial strength of the monoline insurer. | ||||||||||
The total potential loss on undrawn lending commitments, standby and commercial letters of credit, and securities lending indemnifications is equal to the total notional amount if drawn upon, which does not consider the value of any collateral. | ||||||||||
Since many of the commitments are expected to expire without being drawn upon, the total amount does not necessarily represent future cash requirements. A summary of lending commitment maturities is as follows: $11.3 billion in less than one year, $22.6 billion in one to five years and $252 million over five years. | ||||||||||
Standby letters of credit (“SBLC”) principally support corporate obligations and were collateralized with cash and securities of $412 million and $421 million at March 31, 2015 and Dec. 31, 2014, respectively. At March 31, 2015, $3.4 billion of the SBLCs will expire within one year and $2.2 billion in one to five years. | ||||||||||
We must recognize, at the inception of standby letters of credit and foreign and other guarantees, a liability for the fair value of the obligation undertaken in issuing the guarantee. The fair value of the liability, which was recorded with a corresponding asset in other assets, was estimated as the present value of contractual customer fees. | ||||||||||
The estimated liability for losses related to these commitments and SBLCs, if any, is included in the allowance for lending-related commitments. The allowance for lending-related commitments was $93 million at March 31, 2015 and $89 million at Dec. 31, 2014. | ||||||||||
Payment/performance risk of SBLCs is monitored using both historical performance and internal ratings criteria. BNY Mellon’s historical experience is that SBLCs typically expire without being funded. SBLCs below investment grade are monitored closely for payment/performance risk. The table below shows SBLCs by investment grade: | ||||||||||
Standby letters of credit | March 31, | Dec. 31, | ||||||||
2015 | 2014 | |||||||||
Investment grade | 86 | % | 88 | % | ||||||
Non-investment grade | 14 | % | 12 | % | ||||||
A commercial letter of credit is normally a short-term instrument used to finance a commercial contract for the shipment of goods from a seller to a buyer. Although the commercial letter of credit is contingent upon the satisfaction of specified conditions, it represents a credit exposure if the buyer defaults on the underlying transaction. As a result, the total contractual amounts do not necessarily represent future cash requirements. Commercial letters of credit totaled $264 million at March 31, 2015 compared with $255 million at Dec. 31, 2014. | ||||||||||
A securities lending transaction is a fully collateralized transaction in which the owner of a security agrees to lend the security (typically through an agent, in our case, The Bank of New York Mellon), to a borrower, usually a broker-dealer or bank, on an open, overnight or term basis, under the terms of a prearranged contract, which normally matures in less than 90 days. | ||||||||||
We typically lend securities with indemnification against borrower default. We generally require the borrower to provide collateral with a minimum value of 102% of the fair value of the securities borrowed, which is monitored on a daily basis, thus reducing credit risk. Market risk can also arise in securities lending transactions. These risks are controlled through policies limiting the level of risk that can be undertaken. Securities lending transactions are generally entered into only with highly-rated counterparties. Securities lending indemnifications were secured by collateral of $323 billion at March 31, 2015 and $316 billion at Dec. 31, 2014. | ||||||||||
CIBC Mellon, a joint venture between BNY Mellon and the Canadian Imperial Bank of Commerce (“CIBC”), engages in securities lending activities. CIBC Mellon, BNY Mellon, and CIBC jointly and severally indemnify securities lenders against specific types of borrower default. At March 31, 2015 and Dec. 31, 2014, $68 billion and $64 billion, respectively, of borrowings at CIBC Mellon for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, were secured by collateral of $72 billion and $67 billion, respectively. If, upon a default, a borrower’s collateral was not sufficient to cover its related obligations, certain losses related to the indemnification could be covered by the indemnitors. | ||||||||||
We expect many of these guarantees to expire without the need to advance any cash. The revenue associated with guarantees frequently depends on the credit rating of the obligor and the structure of the transaction, including collateral, if any. | ||||||||||
Exposure for certain administrative errors | ||||||||||
In connection with certain offshore tax-exempt funds that we manage, we may be liable to the funds for certain administrative errors. The errors relate to the resident status of such funds, potentially exposing the Company to a tax liability related to the funds’ earnings. The Company is in discussions with tax authorities regarding the funds. With the charge recorded in 2014 for this matter, we believe we are appropriately accrued and the additional reasonably possible exposure is not significant. | ||||||||||
Indemnification arrangements | ||||||||||
We have provided standard representations for underwriting agreements, acquisition and divestiture agreements, sales of loans and commitments, and other similar types of arrangements and customary indemnification for claims and legal proceedings related to providing financial services that are not otherwise included above. Insurance has been purchased to mitigate certain of these risks. Generally, there are no stated or notional amounts included in these indemnifications and the contingencies triggering the obligation for indemnification are not expected to occur. Furthermore, often counterparties to these transactions provide us with comparable indemnifications. We are unable to develop an estimate of the maximum payout under these indemnifications for several reasons. In addition to the lack of a stated or notional amount in a majority of such indemnifications, we are unable to predict the nature of events that would trigger indemnification or the level of indemnification for a certain event. We believe, however, that the possibility that we will have to make any material payments for these indemnifications is remote. At March 31, 2015 and Dec. 31, 2014, we have not recorded any material liabilities under these arrangements. | ||||||||||
Clearing and settlement exchanges | ||||||||||
We are a noncontrolling equity investor in, and/or member of, several industry clearing or settlement exchanges through which foreign exchange, securities, derivatives or other transactions settle. Certain of these industry clearing and settlement exchanges require their members to guarantee their obligations and liabilities or to provide financial support in the event other members do not honor their obligations. We believe the likelihood that a clearing or settlement exchange (of which we are a member) would become insolvent is remote. Additionally, certain settlement exchanges have implemented loss allocation policies that enable the exchange to allocate settlement losses to the members of the exchange. It is not possible to quantify such mark-to-market loss until the loss occurs. In addition, any ancillary costs that occur as a result of any mark-to-market loss cannot be quantified. At March 31, 2015 and Dec. 31, 2014, we have not recorded any material liabilities under these arrangements. | ||||||||||
Legal proceedings | ||||||||||
In the ordinary course of business, BNY Mellon and its subsidiaries are routinely named as defendants in or made parties to pending and potential legal actions. We also are subject to governmental and regulatory examinations, information-gathering requests, investigations and proceedings (both formal and informal). Claims for significant monetary damages are often asserted in many of these legal actions, while claims for disgorgement, restitution, penalties and/or other remedial actions or sanctions may be sought in regulatory matters. It is inherently difficult to predict the eventual outcomes of such matters given their complexity and the particular facts and circumstances at issue in each of these matters. However, on the basis of our current knowledge and understanding, we do not believe that judgments, settlements or orders, if any, arising from these matters (either individually or in the aggregate, after giving effect to applicable reserves and insurance coverage) will have a material adverse effect on the consolidated financial position or liquidity of BNY Mellon, although they could have a material effect on net income in a given period. | ||||||||||
In view of the inherent unpredictability of outcomes in litigation and governmental and regulatory matters, particularly where (i) the damages sought are substantial or indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel legal theories or a large number of parties, as a matter of course there is considerable uncertainty surrounding the timing or ultimate resolution of litigation and governmental and regulatory matters, including a possible eventual loss, fine, penalty or business impact, if any, associated with each such matter. In accordance with applicable accounting guidance, BNY Mellon establishes accruals for litigation and governmental and regulatory matters when those matters proceed to a stage where they present loss contingencies that are both probable and reasonably estimable. In such cases, there may be a possible exposure to loss in excess of any amounts accrued. BNY Mellon will continue to monitor such matters for developments that could affect the amount of the accrual, and will adjust the accrual amount as appropriate. If the loss contingency in question is not both probable and reasonably estimable, BNY Mellon does not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. BNY Mellon believes that its accruals for legal proceedings are appropriate and, in the aggregate, are not material to the consolidated financial position of BNY Mellon, although future accruals could have a material effect on net income in a given period. | ||||||||||
For certain of those matters described here for which a loss contingency may, in the future, be reasonably possible (whether in excess of a related accrued liability or where there is no accrued liability), BNY Mellon is currently unable to estimate a range of reasonably possible loss. For those matters described here where BNY Mellon is able to estimate a reasonably possible loss, the aggregate range of such reasonably possible loss is up to $280 million in excess of the accrued liability (if any) related to those matters. | ||||||||||
The following describes certain judicial, regulatory and arbitration proceedings involving BNY Mellon: | ||||||||||
Sentinel Matters | ||||||||||
On Jan. 18, 2008, The Bank of New York Mellon filed a proof of claim in the Chapter 11 bankruptcy proceeding of Sentinel Management Group, Inc. (“Sentinel”) pending in federal court in the Northern District of Illinois, seeking to recover approximately $312 million loaned to Sentinel and secured by securities and cash in an account maintained by Sentinel at The Bank of New York Mellon. On March 3, 2008, the bankruptcy trustee filed an adversary complaint against The Bank of New York Mellon seeking to disallow The Bank of New York Mellon’s claim and seeking damages for The Bank of New York Mellon’s allegedly aiding and abetting Sentinel insiders in misappropriating customer assets and improperly using those assets as collateral for the loan. In a decision dated Nov. 3, 2010, the court found for The Bank of New York Mellon and against the bankruptcy trustee, holding that The Bank of New York Mellon’s loan to Sentinel is valid, fully secured and not subject to equitable subordination. The bankruptcy trustee appealed this decision, and on Aug. 9, 2012, the United States Court of Appeals for the Seventh Circuit issued a decision affirming the trial court’s judgment. On Sept. 7, 2012, the bankruptcy trustee filed a petition for rehearing and, on Nov. 30, 2012, the Court of Appeals withdrew its opinion and vacated its judgment. On Aug. 26, 2013, the Court of Appeals reversed its own prior decision and the district court’s decision, and remanded the case to the district court for further proceedings. On Dec. 10, 2014, the district court issued a decision in favor of The Bank of New York Mellon holding that the transfers from Sentinel cannot be reversed and that The Bank of New York Mellon’s lien is valid and not subject to equitable subordination. On Jan. 8, 2015, the bankruptcy trustee filed a notice of appeal. | ||||||||||
In November 2009, the Division of Enforcement of the U.S. Commodities Futures Trading Commission (“CFTC”) indicated that it is considering a recommendation to the CFTC that it file a civil enforcement action against The Bank of New York Mellon for possible violations of the Commodity Exchange Act and CFTC regulations in connection with its relationship to Sentinel. The Bank of New York Mellon responded in writing to the CFTC on Jan. 29, 2010 and provided an explanation as to why an enforcement action is unwarranted. | ||||||||||
Securities Lending Matters | ||||||||||
BNY Mellon or its affiliates have been named as defendants in a number of lawsuits initiated by participants in BNY Mellon’s securities lending program, which is a part of BNY Mellon’s Investment Services business. The lawsuits were filed on various dates from 2009 to 2013, and are currently pending in courts in North Carolina and Illinois. The complaints assert contractual, statutory, and common law claims, including claims for negligence and breach of fiduciary duty. The plaintiffs allege that BNY Mellon should have prevented losses in connection with the investment of securities lending collateral in Lehman Brothers Holdings, Inc., and seek damages as to those losses. The lawsuits are all in discovery phases; no trial dates have been set. | ||||||||||
Foreign Exchange Matters | ||||||||||
Beginning in December 2009, government authorities have been conducting inquiries seeking information relating primarily to standing instruction foreign exchange transactions in connection with custody services BNY Mellon provides to public pension plans and certain other custody clients. BNY Mellon has cooperated with these inquiries. | ||||||||||
In addition, on Oct. 4, 2011, the New York Attorney General’s Office (“NYAG”), the New York City Comptroller and various city pension and benefit funds filed a lawsuit asserting claims under the Martin Act and state and city false claims acts. On Aug. 5, 2013, the court dismissed the false claims act claims, and certain plaintiffs have since filed a notice of appeal. Also, on Oct. 4, 2011, the United States Department of Justice (“DOJ”) filed a civil lawsuit seeking civil penalties under 12 U.S.C. Section 1833a and injunctive relief under 18 U.S.C. Section 1345 based on alleged ongoing violations of 18 U.S.C. Sections 1341 and 1343 (mail and wire fraud). On Jan. 17, 2012, the court approved a partial settlement resolving the DOJ’s claim for injunctive relief. In October 2011, several public pension funds in the state of California purported to intervene in a qui tam lawsuit that was removed to federal district court in California. On March 30, 2012, the court dismissed certain of plaintiffs’ claims, including all claims under the California False Claims Act. Certain plaintiffs refiled their claims and, on May 1, 2014, the court again dismissed the California False Claims Act claims, along with certain other claims. | ||||||||||
BNY Mellon has also been named as a defendant in several putative class action federal lawsuits filed on various dates in 2011, 2012 and 2014. The complaints, which assert claims including breach of contract and ERISA and securities laws violations, all allege that the prices BNY Mellon charged for standing instruction foreign exchange transactions executed in connection with custody services provided by BNY Mellon were improper. In addition, BNY Mellon has been named as a nominal defendant in several derivative lawsuits filed in 2011 and 2012 in state and federal court in New York. On July 2, 2013, the court in the consolidated federal derivative action dismissed all of plaintiffs’ claims. On Oct. 1, 2013, the court in the consolidated state derivative action dismissed all of plaintiffs’ claims. One of the plaintiffs appealed and the dismissal was affirmed on Dec. 11, 2014. To the extent the lawsuits are pending in federal court, they are being coordinated for pre-trial purposes in federal court in New York. | ||||||||||
On March 19, 2015, BNY Mellon announced that it has resolved substantially all of the FX-related actions currently pending, resulting in a total of $714 million in settlement payments, which are fully covered by preexisting reserves. BNY Mellon reached settlements with the DOJ and NYAG under which it will pay each of them $167.5 million and provide functionality allowing customers to compare pricing for BNY Mellon’s “defined spread” and “session range” standing instruction FX products. In addition, BNY Mellon reached settlements with the plaintiffs in the outstanding customer class actions, as well as with the U.S. Department of Labor (“DOL”). BNY Mellon will pay $335 million under the class action settlement, which is subject to court approval, and an additional $14 million to the DOL. BNY Mellon has also reached a settlement in principle with the SEC. Under the terms of the agreement with the SEC staff, which is subject to Commission approval, BNY Mellon will pay a $30 million penalty. The putative class action asserting securities law violations, along with two lawsuits brought by individual FX customers, remain pending. | ||||||||||
Tax Litigation | ||||||||||
On Aug. 17, 2009, BNY Mellon received a Statutory Notice of Deficiency disallowing tax benefits for the 2001 and 2002 tax years in connection with a 2001 transaction that involved the payment of UK corporate income taxes that were credited against BNY Mellon’s U.S. corporate income tax liability. The Notice alleged that the transaction lacked economic substance and business purpose. On Nov. 10, 2009, BNY Mellon filed a petition with the U.S. Tax Court contesting the disallowance of the benefits. Following a trial, the Tax Court upheld the IRS’s Notice of Deficiency and disallowed BNY Mellon’s tax credits and associated transaction costs on Feb. 11, 2013. On Sept. 23, 2013, the Tax Court issued a supplemental opinion, partially reducing the tax implications to BNY Mellon of its earlier decision. The Tax Court entered a decision formally implementing its prior rulings on Feb. 20, 2014. BNY Mellon appealed the decision to the Second Circuit Court of Appeals on March 5, 2014. Argument on the appeal is scheduled for May 18, 2015. See Note 10 of the Notes to Consolidated Financial Statements for additional information. | ||||||||||
Mortgage-Securitization Trusts Proceedings | ||||||||||
The Bank of New York Mellon as trustee is the petitioner in a legal proceeding filed in New York State Supreme Court, New York County on June 29, 2011, seeking approval of a proposed settlement involving Bank of America Corporation, and investors in certain Countrywide residential mortgage-securitization trusts. On Jan. 31, 2014, the court issued its decision approving the settlement except to the extent that it releases loan modification claims. The court approved all the other terms of the settlement. The Bank of New York Mellon appealed the court’s decision to exempt loan modification claims from the settlement approval and several objectors to the settlement cross-appealed. On March 5, 2015, the Appellate Division approved the terms of the settlement in their entirety, including the release of the loan modification claims. The Bank of New York Mellon has also been named as a defendant in a lawsuit brought in New York State court on June 18, 2014, and later re-filed in federal court, by a group of institutional investors. This lawsuit is one of a number of legal actions brought by MBS investors against The Bank of New York Mellon alleging that the trustee has expansive duties under the governing agreements, including to investigate and pursue breach of representation and warranty claims against other parties to the MBS transactions. | ||||||||||
Matters Related to R. Allen Stanford | ||||||||||
In late December 2005, Pershing LLC became a clearing firm for Stanford Group Co. (“SGC”), a registered broker dealer that was part of a group of entities ultimately controlled by R. Allen Stanford. Stanford International Bank (“SIB”), also controlled by Stanford, issued certificates of deposit (“CDs”). Some investors allegedly wired funds from their SGC accounts to purchase CDs. In 2009, the SEC charged Stanford with operating a Ponzi scheme in connection with the sale of CDs, and SGC was placed into receivership. Alleged purchasers of CDs have filed 11 pending lawsuits against Pershing in Texas, including a putative class action. The purchasers allege that Pershing, as SGC’s clearing firm, assisted Stanford in a fraudulent scheme and assert contractual, statutory and common law claims. In addition, alleged purchasers have filed FINRA arbitration claims against Pershing in Texas, Florida, Louisiana, Mississippi, Tennessee, Arkansas, North Carolina and Georgia. On Oct. 8, 2014 and Nov. 3, 2014, Pershing received awards in its favor from two FINRA arbitration panels. On March 2, 2015, Pershing settled 38 FINRA arbitration claims; six FINRA arbitration claims remain pending. | ||||||||||
UK Financial Conduct Authority Matter | ||||||||||
The UK Financial Conduct Authority (the “FCA”) has been conducting an investigation into compliance by The Bank of New York Mellon, London Branch and The Bank of New York Mellon (International) Limited (the “firms”) with the FCA’s Client Assets Sourcebook (“CASS Rules”), which sets out the regime in the UK for the protection of client interests in relation to holding or controlling client assets. On April 15, 2015, the FCA announced that it had entered into a settlement agreement with the firms in which the firms agreed to pay a fine in the amount of £126 million, after reduction for an early stage settlement, and to the issuance of a Final Notice by the FCA for failing to comply with the CASS Rules between Nov. 1, 2007 and Aug. 12, 2013. | ||||||||||
Brazilian Postalis Litigation | ||||||||||
BNY Mellon Servicos Financeiros DTVM S.A. (“DTVM”), a subsidiary that provides a number of asset services in Brazil, acts as administrator for certain investment funds in which the exclusive investor is a public pension fund for postal workers called Postalis-Instituto de Seguridade Social dos Correios e Telégrafos (“Postalis”). On Aug. 22, 2014, Postalis sued DTVM in Brazil for losses related to a Postalis investment fund for which DTVM serves as fund administrator. Postalis alleges that DTVM failed to properly perform alleged duties, including duties to conduct due diligence of and exert control over the fund manager, Atlântica Administração de Recursos (“Atlântica”), and Atlântica’s investments. On March 12, 2015, Postalis filed a lawsuit in Brazil against DTVM and BNY Mellon Administração de Ativos Ltda. (“Ativos”) alleging failure to properly perform alleged duties relating to another fund of which DTVM is administrator and Ativos is investment manager. | ||||||||||
Sovereign Wealth Funds Inquiry | ||||||||||
In January 2011, the Enforcement Division of the U.S. Securities and Exchange Commission (the “SEC Staff”) informed several financial institutions, including BNY Mellon, that it had commenced an inquiry into certain of their business practices and relationships with sovereign wealth fund clients. In the third quarter of 2014, the SEC Staff issued Wells notices to certain current and former employees of BNY Mellon, informing them that the SEC Staff has made a preliminary determination to recommend enforcement action against them for alleged violations of the U.S. Foreign Corrupt Practices Act in connection with the provision of a limited number of internships to relatives of sovereign wealth fund officials. BNY Mellon received a similar Wells notice in the fourth quarter of 2014. On Jan. 23, 2015, BNY Mellon received an additional subpoena from the SEC expanding the scope of the SEC’s inquiry into the provision of internships and employment opportunities offered to officials and relatives of officials at government-related entities. BNY Mellon has fully cooperated with the SEC Staff’s investigation. |
Lines_of_Businesses
Lines of Businesses | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Lines of Businesses | Lines of businesses | ||||||||||||||||
We have an internal information system that produces performance data along product and services lines for our two principal businesses and the Other segment. | |||||||||||||||||
Business accounting principles | |||||||||||||||||
Our business data has been determined on an internal management basis of accounting, rather than the generally accepted accounting principles used for consolidated financial reporting. These measurement principles are designed so that reported results of the businesses will track their economic performance. | |||||||||||||||||
Business results are subject to reclassification when organizational changes are made or whenever improvements are made in the measurement principles. | |||||||||||||||||
The accounting policies of the businesses are the same as those described in Note 1 of the Notes to Consolidated Financial Statements in our 2014 Annual Report. | |||||||||||||||||
The primary types of revenue for our two principal businesses and the Other segment are presented below: | |||||||||||||||||
Business | Primary types of revenue | ||||||||||||||||
Investment Management | Ÿ Investment management and performance fees from: | ||||||||||||||||
Mutual funds | |||||||||||||||||
Institutional clients | |||||||||||||||||
Private clients | |||||||||||||||||
High-net-worth individuals and families, endowments and foundations and related entities | |||||||||||||||||
Ÿ Distribution and servicing fees | |||||||||||||||||
Investment Services | Ÿ Asset servicing fees, including institutional trust and custody fees, broker-dealer services, global collateral services and securities lending | ||||||||||||||||
Ÿ Issuer services fees, including Corporate Trust and Depositary Receipts | |||||||||||||||||
Ÿ Clearing services fees, including broker-dealer services, registered investment advisor services and prime brokerage services | |||||||||||||||||
Ÿ Treasury services fees, including global payment services and working capital solutions | |||||||||||||||||
Ÿ Foreign exchange | |||||||||||||||||
Other segment | Ÿ Credit-related activities | ||||||||||||||||
Ÿ Leasing operations | |||||||||||||||||
Ÿ Corporate treasury activities | |||||||||||||||||
Ÿ Global markets and institutional banking services | |||||||||||||||||
Ÿ Business exits | |||||||||||||||||
The results of our businesses are presented and analyzed on an internal management reporting basis: | |||||||||||||||||
• | Revenue amounts reflect fee and other revenue generated by each business. Fee and other revenue transferred between businesses under revenue transfer agreements is included within other revenue in each business. | ||||||||||||||||
• | Revenues and expenses associated with specific client bases are included in those businesses. For example, foreign exchange activity associated with clients using custody products is allocated to Investment Services. | ||||||||||||||||
• | Net interest revenue is allocated to businesses based on the yields on the assets and liabilities generated by each business. We employ a funds transfer pricing system that matches funds with the specific assets and liabilities of each business based on their interest sensitivity and maturity characteristics. | ||||||||||||||||
• | Incentive expense related to restricted stock and certain corporate overhead charges are allocated to the businesses. | ||||||||||||||||
• | Support and other indirect expenses are allocated to businesses based on internally-developed methodologies. | ||||||||||||||||
• | Recurring FDIC expense is allocated to the businesses based on average deposits generated within each business. | ||||||||||||||||
• | Litigation expense is generally recorded in the business in which the charge occurs. | ||||||||||||||||
• | Management of the investment securities portfolio is a shared service contained in the Other segment. As a result, gains and losses associated with the valuation of the securities portfolio are included in the Other segment. | ||||||||||||||||
• | Client deposits serve as the primary funding source for our investment securities portfolio. We typically allocate all interest revenue to the businesses generating the deposits. Accordingly, accretion related to the portion of the investment securities portfolio restructured in 2009 has been included in the results of the businesses. | ||||||||||||||||
• | M&I expense is a corporate level item and is recorded in the Other segment. | ||||||||||||||||
• | Restructuring charges recorded in 2014 relate to corporate-level initiatives and were therefore recorded in the Other segment. In the fourth quarter of 2013, restructuring charges were recorded in the businesses. Prior to the fourth quarter of 2013, restructuring charges were reported in the Other segment. | ||||||||||||||||
• | Balance sheet assets and liabilities and their related income or expense are specifically assigned to each business. Businesses with a net liability position have been allocated assets. | ||||||||||||||||
• | Goodwill and intangible assets are reflected within individual businesses. | ||||||||||||||||
The following consolidating schedules show the contribution of our businesses to our overall profitability. | |||||||||||||||||
For the quarter ended March 31, 2015 | Investment | Investment | Other | Consolidated | |||||||||||||
(dollar amounts in millions) | Management | Services | |||||||||||||||
Fee and other revenue | $ | 936 | (a) | $ | 1,993 | $ | 104 | $ | 3,033 | (a) | |||||||
Net interest revenue | 74 | 600 | 54 | 728 | |||||||||||||
Total revenue | 1,010 | (a) | 2,593 | 158 | 3,761 | (a) | |||||||||||
Provision for credit losses | — | — | 2 | 2 | |||||||||||||
Noninterest expense | 746 | 1,838 | 116 | 2,700 | |||||||||||||
Income before taxes | $ | 264 | (a) | $ | 755 | $ | 40 | $ | 1,059 | (a) | |||||||
Pre-tax operating margin (b) | 26 | % | 29 | % | N/M | 28 | % | ||||||||||
Average assets | $ | 37,496 | $ | 284,978 | $ | 52,416 | $ | 374,890 | |||||||||
(a) | Both total fee and other revenue and total revenue include the net income from consolidated investment management funds of $31 million, representing $121 million of income and noncontrolling interests of $90 million. Income before taxes is net of noncontrolling interests of $90 million. | ||||||||||||||||
(b) | Income before taxes divided by total revenue. | ||||||||||||||||
N/M - Not meaningful. | |||||||||||||||||
For the quarter ended Dec. 31, 2014 | Investment | Investment | Other | Consolidated | |||||||||||||
(dollar amounts in millions) | Management | Services | |||||||||||||||
Fee and other revenue | $ | 929 | (a) | $ | 1,907 | $ | 117 | $ | 2,953 | (a) | |||||||
Net interest revenue | 69 | 574 | 69 | 712 | |||||||||||||
Total revenue | 998 | (a) | 2,481 | 186 | 3,665 | (a) | |||||||||||
Provision for credit losses | — | — | 1 | 1 | |||||||||||||
Noninterest expense | 759 | 2,555 | 210 | 3,524 | |||||||||||||
Income (loss) before taxes | $ | 239 | (a) | $ | (74 | ) | $ | (25 | ) | $ | 140 | (a) | |||||
Pre-tax operating margin (b) | 24 | % | (3 | )% | N/M | 4 | % | ||||||||||
Average assets | $ | 37,286 | $ | 276,586 | $ | 71,360 | $ | 385,232 | |||||||||
(a) | Both total fee and other revenue and total revenue include the net income from consolidated investment management funds of $18 million, representing $42 million of income and noncontrolling interests of $24 million. Income before taxes is net of noncontrolling interests of $24 million. | ||||||||||||||||
(b) | Income before taxes divided by total revenue. | ||||||||||||||||
N/M - Not meaningful. | |||||||||||||||||
For the quarter ended March 31, 2014 | Investment | Investment | Other | Consolidated | |||||||||||||
(dollar amounts in millions) | Management | Services | |||||||||||||||
Fee and other revenue | $ | 900 | (a) | $ | 1,887 | $ | 112 | $ | 2,899 | (a) | |||||||
Net interest revenue | 70 | 590 | 68 | 728 | |||||||||||||
Total revenue | 970 | (a) | 2,477 | 180 | 3,627 | (a) | |||||||||||
Provision for credit losses | — | — | (18 | ) | (18 | ) | |||||||||||
Noninterest expense | 724 | 1,822 | 193 | 2,739 | |||||||||||||
Income before taxes | $ | 246 | (a) | $ | 655 | $ | 5 | $ | 906 | (a) | |||||||
Pre-tax operating margin (b) | 25 | % | 26 | % | N/M | 25 | % | ||||||||||
Average assets | $ | 39,463 | $ | 258,470 | $ | 57,059 | $ | 354,992 | |||||||||
(a) | Both total fee and other revenue and total revenue include the net income from consolidated investment management funds of $16 million, representing $36 million of income and noncontrolling interests of $20 million. Income before taxes is net of noncontrolling interests of $20 million. | ||||||||||||||||
(b) | Income before taxes divided by total revenue. | ||||||||||||||||
N/M - Not meaningful. |
Supplemental_information_to_th
Supplemental information to the Consolidated Statement of Cash Flows | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||
Supplemental information to the Consolidated Statement of Cash Flows | Supplemental information to the Consolidated Statement of Cash Flows | ||||||||
Noncash investing and financing transactions that, appropriately, are not reflected in the Consolidated Statement of Cash Flows are listed below. | |||||||||
Noncash investing and financing transactions | Three months ended March 31, | ||||||||
(in millions) | 2015 | 2014 | |||||||
Transfers from loans to other assets for other real estate owned (“OREO”) | $ | 2 | $ | 1 | |||||
Change in assets of consolidated VIEs | 857 | 179 | |||||||
Change in liabilities of consolidated VIEs | 1,049 | 27 | |||||||
Change in noncontrolling interests of consolidated VIEs | 304 | 12 | |||||||
Securities not settled | 1,177 | 1,167 | |||||||
Available-for-sale securities transferred to held-to-maturity | 11,602 | — | |||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Basis of presentation | Basis of presentation | |
The accounting and financial reporting policies of BNY Mellon, a global financial services company, conform to U.S. generally accepted accounting principles (“GAAP”) and prevailing industry practices. | ||
The accompanying consolidated financial statements are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods have been made. These financial statements should be read in conjunction with BNY Mellon’s Annual Report on Form 10-K for the year ended Dec. 31, 2014. Certain immaterial reclassifications have been made to prior periods to place them on a basis comparable with current period presentation. | ||
Use of estimates | Use of estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates based upon assumptions about future economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Amounts subject to estimates are items such as the allowance for loan losses and lending-related commitments, the fair value of financial instruments and other-than-temporary impairments, goodwill and intangible assets and pension accounting. Among other effects, such changes in estimates could result in future impairments of investment securities, goodwill and intangible assets and establishment of allowances for loan losses and lending-related commitments as well as changes in pension and post-retirement expense. | ||
Other Than Temporary Impairment | Other-than-temporary impairment | |
We routinely conduct periodic reviews of all securities using economic models to identify and evaluate each investment security to determine whether OTTI has occurred. Various inputs to the economic models are used to determine if an unrealized loss on securities is other-than-temporary. For example, the most significant inputs related to non-agency RMBS are: | ||
• | Default rate - the number of mortgage loans expected to go into default over the life of the transaction, which is driven by the roll rate of loans in each performance bucket that will ultimately migrate to default; and | |
• | Severity - the loss expected to be realized when a loan defaults. | |
To determine if an unrealized loss is other-than-temporary, we project total estimated defaults of the underlying assets (mortgages) and multiply that calculated amount by an estimate of realizable value upon sale of these assets in the marketplace (severity) in order to determine the projected collateral loss. In determining estimated default rate and severity assumptions, we review the performance of the underlying securities, industry studies, market forecasts, as well as our view of the economic outlook affecting collateral. We also evaluate the current credit enhancement underlying the bond to determine the impact on cash flows. If we determine that a given security will be subject to a write-down or loss, we record the expected credit loss as a charge to earnings. | ||
Fair Value Measurement | Fair value measurement | |
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. A three-level hierarchy for fair value measurements is utilized based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. BNY Mellon’s own creditworthiness is considered when valuing liabilities. | ||
Fair value focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The objective is to determine from weighted indicators of fair value a reasonable point within the range that is most representative of fair value under current market conditions. | ||
Determination of fair value | ||
Following is a description of our valuation methodologies for assets and liabilities measured at fair value. We have established processes for determining fair values. Fair value is based upon quoted market prices in active markets, where available. For financial instruments where quotes from recent exchange transactions are not available, we determine fair value based on discounted cash flow analysis, comparison to similar instruments, and the use of financial models. Discounted cash flow analysis is dependent upon estimated future cash flows and the level of interest rates. Model-based pricing uses inputs of observable prices, where available, for interest rates, foreign exchange rates, option volatilities and other factors. Models are benchmarked and validated by an independent internal risk management function. Our valuation process takes into consideration factors such as counterparty credit quality, liquidity, concentration concerns, and observability of model parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. | ||
Most derivative contracts are valued using internally developed models which are calibrated to observable market data and employ standard market pricing theory for their valuations. An initial “risk-neutral” valuation is performed on each position assuming time-discounting based on an AA credit curve. Then, to arrive at a fair value that incorporates counter-party credit risk, a credit adjustment is made to these results by discounting each trade’s expected exposures to the counterparty using the counterparty’s credit spreads, as implied by the credit default swap market. We also adjust expected liabilities to the counterparty using BNY Mellon’s own credit spreads, as implied by the credit default swap market. Accordingly, the valuation of our derivative position is sensitive to the current changes in our own credit spreads as well as those of our counterparties. | ||
In certain cases, recent prices may not be observable for instruments that trade in inactive or less active markets. Upon evaluating the uncertainty in valuing financial instruments subject to liquidity issues, we make an adjustment to their value. The determination of the liquidity adjustment includes the availability of external quotes, the time since the latest available quote and the price volatility of the instrument. | ||
Certain parameters in some financial models are not directly observable and, therefore, are based on management’s estimates and judgments. These financial instruments are normally traded less actively. We apply valuation adjustments to mitigate the possibility of error and revision in the model based estimate value. Examples include products where parameters such as correlation and recovery rates are unobservable. | ||
The methods described above for instruments that trade in inactive or less active markets may produce a current fair value calculation that may not be indicative of net realizable value or reflective of future fair values. We believe our methods of determining fair value are appropriate and consistent with other market participants. However, the use of different methodologies or different assumptions to value certain financial instruments could result in a different estimate of fair value. | ||
Valuation hierarchy | ||
A three-level valuation hierarchy is used for disclosure of fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are described below. | ||
Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 1 assets and liabilities include debt and equity securities, derivative financial instruments actively traded on exchanges and U.S. Treasury securities that are actively traded in highly liquid over-the-counter markets. | ||
Level 2: Observable inputs other than Level 1 prices, for example, quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs that are observable or can be corroborated, either directly or indirectly, for substantially the full term of the financial instrument. Level 2 assets and liabilities include debt instruments that are traded less frequently than exchange-traded securities and derivative instruments whose model inputs are observable in the market or can be corroborated by market-observable data. Examples in this category are agency and non-agency mortgage-backed securities, corporate debt securities and over-the-counter derivative contracts. | ||
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Examples in this category include certain private equity investments, derivative contracts that are highly structured or long-dated, and interests in certain securitized financial assets. | ||
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | ||
Following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. | ||
Securities | ||
Where quoted prices are available in an active market, we classify the securities within Level 1 of the valuation hierarchy. Securities include both long and short positions. Level 1 securities include highly liquid government bonds, money market funds, foreign covered bonds and exchange-traded equities. | ||
If quoted market prices are not available, we estimate fair values using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include agency and non-agency mortgage-backed securities, state and political subdivisions, commercial mortgage-backed securities, sovereign debt, corporate bonds and foreign covered bonds. | ||
For securities where quotes from recent transactions are not available for identical securities, we determine fair value primarily based on pricing sources with reasonable levels of price transparency that employ financial models or obtain comparison to similar instruments to arrive at “consensus” prices. | ||
Specifically, the pricing sources obtain recent transactions for similar types of securities (e.g., vintage, position in the securitization structure) and ascertain variables such as discount rate and speed of prepayment for the types of transaction and apply such variables to similar types of bonds. We view these as observable transactions in the current marketplace and classify such securities as Level 2. Pricing sources discontinue pricing any specific security whenever they determine there is insufficient observable data to provide a good faith opinion on price. | ||
In addition, we have significant investments in more actively traded agency RMBS and other types of securities such as sovereign debt. The pricing sources derive the prices for these securities largely from quotes they obtain from three major inter-dealer brokers. The pricing sources receive their daily observed trade price and other information feeds from the inter-dealer brokers. | ||
For securities with bond insurance, the financial strength of the insurance provider is analyzed and that information is included in the fair value assessment for such securities. | ||
In certain cases where there is limited activity or less transparency around inputs to the valuation, we classify those securities in Level 3 of the valuation hierarchy. Securities classified within Level 3 primarily include securities of state and political subdivisions and distressed debt securities. | ||
At March 31, 2015, more than 99% of our securities were valued by pricing sources with reasonable levels of price transparency. Less than 1% of our securities were priced based on economic models and non-binding dealer quotes, and are included in Level 3 of the valuation hierarchy. | ||
Consolidated collateralized loan obligations | ||
BNY Mellon values assets in consolidated CLOs using observable market prices observed from the secondary loan market. The returns to the note holders are solely dependent on the assets and accordingly equal the value of those assets. Based on the structure of the CLOs, the valuation of the assets is attributable to the note holders. Changes in the values of assets and liabilities are reflected in the income statement as investment and other income and interest of investment management fund note holders, respectively. Consolidated CLOs are generally classified within Level 2 of the valuation hierarchy. | ||
Derivatives | ||
We classify exchange-traded derivatives valued using quoted prices in Level 1 of the valuation hierarchy. Examples include exchange-traded equity and foreign exchange options. Since few other classes of derivative contracts are listed on an exchange, most of our derivative positions are valued using internally developed models that use as their basis readily observable market parameters, and we classify them in Level 2 of the valuation hierarchy. Such derivatives include swaps and options, foreign exchange spot and forward contracts and credit default swaps. | ||
Derivatives valued using models with significant unobservable market parameters in markets that lack two-way flow are classified in Level 3 of the valuation hierarchy. Examples include long-dated interest rate or currency swaps and options, where parameters may be unobservable for longer maturities; and certain products, where correlation risk is unobservable. The fair value of these derivatives composes less than 1% of our derivative financial instruments. Additional disclosures of derivative instruments are provided in Note 16 of the Notes to Consolidated Financial Statements. | ||
Loans and unfunded lending-related commitments | ||
Where quoted market prices are not available, we generally base the fair value of loans and unfunded lending-related commitments on observable market prices of similar instruments, including bonds, credit derivatives and loans with similar characteristics. If observable market prices are not available, we base the fair value on estimated cash flows adjusted for credit risk which are discounted using an interest rate appropriate for the maturity of the applicable loans or the unfunded lending-related commitments. | ||
Unrealized gains and losses, if any, on unfunded lending-related commitments carried at fair value are classified in other assets and other liabilities, respectively. Loans and unfunded lending-related commitments carried at fair value are generally classified within Level 2 of the valuation hierarchy. | ||
Seed capital | ||
In our Investment Management business, we manage investment assets, including equities, fixed income, money market and alternative investment funds for institutions and other investors. As part of that activity, we make seed capital investments in certain funds. Seed capital is included in other assets. When applicable, we value seed capital based on the published NAV of the fund. We include funds in which ownership interests in the fund are publicly traded in an active market and institutional funds in which investors trade in and out daily in Level 1 of the valuation hierarchy. We include open-end funds where investors are allowed to sell their ownership interest back to the fund less frequently than daily and where our interest in the fund contains no other rights or obligations in Level 2 of the valuation hierarchy. However, we generally include investments in funds that allow investors to sell their ownership interest back to the fund less frequently than monthly in Level 3, unless actual redemption prices are observable. | ||
For other types of investments in funds, we consider all of the rights and obligations inherent in our ownership interest, including the reported NAV as well as other factors that affect the fair value of our interest in the fund. To the extent the NAV measurements reported for the investments are based on unobservable inputs or include other rights and obligations (e.g., obligation to meet cash calls), we generally classify them in Level 3 of the valuation hierarchy. | ||
Certain interests in securitizations | ||
For certain interests in securitizations that are classified in securities available-for-sale, trading assets and long-term debt, we use discounted cash flow models, which generally include assumptions of projected finance charges related to the securitized assets, estimated net credit losses, prepayment assumptions and estimates of payments to third-party investors. When available, we compare our fair value estimates and assumptions to market activity and to the actual results of the securitized portfolio. | ||
Private equity investments | ||
Our Other segment includes holdings of nonpublic private equity investments through funds managed by third-party investment managers. We value private equity investments initially based upon the transaction price, which we subsequently adjust to reflect expected exit values as evidenced by financing and sale transactions with third parties or through ongoing reviews by the investment managers. | ||
Private equity investments also include publicly held equity investments, generally obtained through the initial public offering of privately held equity investments. These equity investments are often held in a partnership structure. Publicly held investments are marked-to-market at the quoted public value less adjustments for regulatory or contractual sales restrictions or adjustments to reflect the difficulty in selling a partnership interest. | ||
Discounts for restrictions are quantified by analyzing the length of the restriction period and the volatility of the equity security. Publicly held private equity investments are primarily classified in Level 2 of the valuation hierarchy. | ||
The following tables present the financial instruments carried at fair value at March 31, 2015 and Dec. 31, 2014, by caption on the consolidated balance sheet and by valuation hierarchy (as described above). We have included credit ratings information in certain of the tables because the information indicates the degree of credit risk to which we are exposed, and significant changes in ratings classifications could result in increased risk for us. There were no material transfers between Level 1 and Level 2 during the first quarter of 2015. | ||
Estimated Fair Value of Financial Instruments | Estimated fair value of financial instruments | |
The carrying amounts of our financial instruments (i.e., monetary assets and liabilities) are determined under different accounting methods - see Note 1 of the Notes to Consolidated Financial Statements. The following disclosure discusses these instruments on a uniform fair value basis. However, active markets do not exist for a significant portion of these instruments. For financial instruments where quoted prices from identical assets and liabilities in active markets do not exist, we determine fair value based on discounted cash flow analysis and comparison to similar instruments. Discounted cash flow analysis is dependent upon estimated future cash flows and the level of interest rates. Other judgments would result in different fair values. The fair value information supplements the basic financial statements and other traditional financial data presented throughout this report. | ||
A summary of the practices used for determining fair value and the respective level in the valuation hierarchy for financial assets and liabilities not recorded at fair value follows. | ||
Interest-bearing deposits with the Federal Reserve and other central banks and interest-bearing deposits with banks | ||
The estimated fair value of interest-bearing deposits with the Federal Reserve and other central banks is equal to the book value as these interest-bearing deposits are generally considered cash equivalents. These instruments are classified as Level 2 within the valuation hierarchy. The estimated fair value of interest-bearing deposits with banks is generally determined using discounted cash flows and duration of the instrument to maturity. The primary inputs used to value these transactions are interest rates based on current LIBOR market rates and time to maturity. Interest-bearing deposits with banks are classified as Level 2 within the valuation hierarchy. | ||
Federal funds sold and securities purchased under resale agreements | ||
The estimated fair value of federal funds sold and securities purchased under resale agreements is based on inputs such as interest rates and tenors. Federal funds sold and securities purchased under resale agreements are classified as Level 2 within the valuation hierarchy. | ||
Securities held-to-maturity | ||
Where quoted prices are available in an active market for identical assets and liabilities, we classify the securities as Level 1 within the valuation hierarchy. Securities are defined as both long and short positions. Level 1 securities include U.S. Treasury securities. | ||
If quoted market prices are not available for identical assets and liabilities, we estimate fair value using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Examples of such instruments, which would generally be classified as Level 2 within the valuation hierarchy, include certain agency and non-agency mortgage-backed securities, commercial mortgage-backed securities and state and political subdivision securities. For securities where quotes from active markets are not available for identical securities, we determine fair value primarily based on pricing sources with reasonable levels of price transparency that employ financial models or obtain comparison to similar instruments to arrive at “consensus” prices. | ||
Specifically, the pricing sources obtain active market prices for similar types of securities (e.g., vintage, position in the securitization structure) and ascertain variables such as discount rate and speed of prepayment for the types of transaction and apply such variables to similar types of bonds. We view these as observable transactions in the current marketplace and classify such securities as Level 2 within the valuation hierarchy. | ||
Loans | ||
For residential mortgage loans, fair value is estimated using discounted cash flow analysis, adjusting where appropriate for prepayment estimates, using interest rates currently being offered for loans with similar terms and maturities to borrowers. The estimated fair value of margin loans and overdrafts is equal to the book value due to the short-term nature of these assets. The estimated fair value of other types of loans, including our term loan program, is determined using discounted cash flows. Inputs include current LIBOR market rates adjusted for credit spreads. These loans are generally classified as Level 2 within the valuation hierarchy. | ||
Other financial assets | ||
Other financial assets include cash, the Federal Reserve Bank stock and accrued interest receivable. Cash is classified as Level 1 within the valuation hierarchy. The Federal Reserve Bank stock is not redeemable or transferable. The estimated fair value of the Federal Reserve Bank stock is based on the issue price and is classified as Level 2 within the valuation hierarchy. Accrued interest receivable is generally short-term. As a result, book value is considered to equal fair value. Accrued interest receivable is included as Level 2 within the valuation hierarchy. | ||
Noninterest-bearing and interest-bearing deposits | ||
Interest-bearing deposits are comprised of money market rate and demand deposits, savings deposits and time deposits. Except for time deposits, book value is considered to equal fair value for these deposits due to their short duration to maturity or payable on demand feature. The fair value of interest-bearing time deposits is determined using discounted cash flow analysis. Inputs primarily consist of current LIBOR market rates and time to maturity. For all noninterest-bearing deposits, book value is considered to equal fair value as a result of the short duration of the deposit. Interest-bearing and noninterest-bearing deposits are classified as Level 2 within the valuation hierarchy. | ||
Federal funds purchased and securities sold under repurchase agreements | ||
The estimated fair value of federal funds purchased and securities sold under repurchase agreements is based on inputs such as interest rates and tenors. Federal funds purchased and securities sold under repurchase agreements are classified as Level 2 within the valuation hierarchy. | ||
Payables to customers and broker-dealers | ||
The estimated fair value of payables to customers and broker-dealers is equal to the book value, due to the demand feature of the payables to customers and broker-dealers, and are classified as Level 2 within the valuation hierarchy. | ||
Borrowings | ||
Borrowings primarily consist of overdrafts of subcustodian account balances in our Investment Services businesses, commercial paper and accrued interest payable. The estimated fair value of overdrafts of subcustodian account balances in our Investment Services businesses is considered to equal book value as a result of the short duration of the overdrafts and is included as Level 2 within the valuation hierarchy. Overdrafts are typically repaid within two days. The estimated fair value of our commercial paper is based on discount and duration of the commercial paper. Our commercial paper matures within 397 days from date of issue and is not redeemable prior to maturity or subject to voluntary prepayment. Our commercial paper is included in Level 2 of the valuation hierarchy. Accrued interest payable is generally short-term. As a result, book value is considered to equal fair value. Accrued interest payable is included as Level 2 within the valuation hierarchy. | ||
Long-term debt | ||
The estimated fair value of long-term debt is based on current rates for instruments of the same remaining maturity or quoted market prices for the same or similar issues. Long-term debt is classified as Level 2 within the valuation hierarchy. |
Securities_Tables
Securities (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||||
Securities [Abstract] | ||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Values of Securities | The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of securities at March 31, 2015 and Dec. 31, 2014. | |||||||||||||||||||||||||||||||||
Securities at | Amortized cost | Gross | Fair value | |||||||||||||||||||||||||||||||
March 31, 2015 | unrealized | |||||||||||||||||||||||||||||||||
(in millions) | Gains | Losses | ||||||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 18,042 | $ | 548 | $ | 4 | $ | 18,586 | ||||||||||||||||||||||||||
U.S. Government agencies | 383 | 2 | — | 385 | ||||||||||||||||||||||||||||||
State and political subdivisions | 5,053 | 106 | 20 | 5,139 | ||||||||||||||||||||||||||||||
Agency RMBS | 25,029 | 445 | 291 | 25,183 | ||||||||||||||||||||||||||||||
Non-agency RMBS | 908 | 36 | 24 | 920 | ||||||||||||||||||||||||||||||
Other RMBS | 1,382 | 23 | 19 | 1,386 | ||||||||||||||||||||||||||||||
Commercial MBS | 1,812 | 44 | 5 | 1,851 | ||||||||||||||||||||||||||||||
Agency commercial MBS | 3,728 | 64 | 7 | 3,785 | ||||||||||||||||||||||||||||||
Asset-backed CLOs | 2,250 | 9 | 1 | 2,258 | ||||||||||||||||||||||||||||||
Other asset-backed securities | 3,398 | 6 | 4 | 3,400 | ||||||||||||||||||||||||||||||
Foreign covered bonds | 2,732 | 76 | — | 2,808 | ||||||||||||||||||||||||||||||
Corporate bonds | 1,695 | 52 | 2 | 1,745 | ||||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 14,988 | 258 | 3 | 15,243 | ||||||||||||||||||||||||||||||
Other debt securities | 2,057 | 11 | — | 2,068 | ||||||||||||||||||||||||||||||
Equity securities | 91 | 1 | — | 92 | ||||||||||||||||||||||||||||||
Money market funds | 730 | — | — | 730 | ||||||||||||||||||||||||||||||
Non-agency RMBS (a) | 1,699 | 442 | 3 | 2,138 | ||||||||||||||||||||||||||||||
Total securities available-for-sale (b) | $ | 85,977 | $ | 2,123 | $ | 383 | $ | 87,717 | ||||||||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | 10,372 | 92 | 2 | 10,462 | ||||||||||||||||||||||||||||||
U.S. Government agencies | 1,168 | 1 | — | 1,169 | ||||||||||||||||||||||||||||||
State and political subdivisions | 21 | — | 1 | 20 | ||||||||||||||||||||||||||||||
Agency RMBS | 25,606 | 326 | 14 | 25,918 | ||||||||||||||||||||||||||||||
Non-agency RMBS | 144 | 8 | 2 | 150 | ||||||||||||||||||||||||||||||
Other RMBS | 267 | 3 | 9 | 261 | ||||||||||||||||||||||||||||||
Commercial MBS | 11 | — | — | 11 | ||||||||||||||||||||||||||||||
Agency commercial MBS | 359 | 4 | — | 363 | ||||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 3,289 | 33 | — | 3,322 | ||||||||||||||||||||||||||||||
Total securities held-to-maturity | $ | 41,237 | $ | 467 | $ | 28 | $ | 41,676 | ||||||||||||||||||||||||||
Total securities | $ | 127,214 | $ | 2,590 | $ | 411 | $ | 129,393 | ||||||||||||||||||||||||||
(a) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | |||||||||||||||||||||||||||||||||
(b) | Includes gross unrealized gains of $101 million and gross unrealized losses of $296 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||||||||||||||||||||||||||||||||
Securities at | Amortized cost | Gross | Fair value | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | unrealized | |||||||||||||||||||||||||||||||||
(in millions) | Gains | Losses | ||||||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 19,592 | $ | 420 | $ | 15 | $ | 19,997 | ||||||||||||||||||||||||||
U.S. Government agencies | 342 | 3 | 2 | 343 | ||||||||||||||||||||||||||||||
State and political subdivisions | 5,176 | 95 | 24 | 5,247 | ||||||||||||||||||||||||||||||
Agency RMBS | 32,568 | 357 | 325 | 32,600 | ||||||||||||||||||||||||||||||
Non-agency RMBS | 942 | 37 | 26 | 953 | ||||||||||||||||||||||||||||||
Other RMBS | 1,551 | 25 | 25 | 1,551 | ||||||||||||||||||||||||||||||
Commercial MBS | 1,927 | 39 | 7 | 1,959 | ||||||||||||||||||||||||||||||
Agency commercial MBS | 3,105 | 36 | 9 | 3,132 | ||||||||||||||||||||||||||||||
Asset-backed CLOs | 2,128 | 9 | 7 | 2,130 | ||||||||||||||||||||||||||||||
Other asset-backed securities | 3,241 | 5 | 6 | 3,240 | ||||||||||||||||||||||||||||||
Foreign covered bonds | 2,788 | 80 | — | 2,868 | ||||||||||||||||||||||||||||||
Corporate bonds | 1,747 | 45 | 7 | 1,785 | ||||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 17,062 | 224 | 2 | 17,284 | ||||||||||||||||||||||||||||||
Other debt securities | 2,162 | 7 | — | 2,169 | ||||||||||||||||||||||||||||||
Equity securities | 94 | 1 | — | 95 | ||||||||||||||||||||||||||||||
Money market funds | 763 | — | — | 763 | ||||||||||||||||||||||||||||||
Non-agency RMBS (a) | 1,747 | 471 | 4 | 2,214 | ||||||||||||||||||||||||||||||
Total securities available-for-sale (b) | $ | 96,935 | $ | 1,854 | $ | 459 | $ | 98,330 | ||||||||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | 5,047 | 32 | 16 | 5,063 | ||||||||||||||||||||||||||||||
U.S. Government agencies | 344 | — | 3 | 341 | ||||||||||||||||||||||||||||||
State and political subdivisions | 24 | 1 | 1 | 24 | ||||||||||||||||||||||||||||||
Agency RMBS | 14,006 | 200 | 44 | 14,162 | ||||||||||||||||||||||||||||||
Non-agency RMBS | 153 | 9 | 2 | 160 | ||||||||||||||||||||||||||||||
Other RMBS | 315 | 2 | 8 | 309 | ||||||||||||||||||||||||||||||
Commercial MBS | 13 | — | — | 13 | ||||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 1,031 | 24 | — | 1,055 | ||||||||||||||||||||||||||||||
Total securities held-to-maturity | $ | 20,933 | $ | 268 | $ | 74 | $ | 21,127 | ||||||||||||||||||||||||||
Total securities | $ | 117,868 | $ | 2,122 | $ | 533 | $ | 119,457 | ||||||||||||||||||||||||||
(a) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | |||||||||||||||||||||||||||||||||
(b) | Includes gross unrealized gains of $60 million and gross unrealized losses of $282 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||||||||||||||||||||||||||||||||
Schedule of Realized Gain (Loss) | The following table presents the gross securities gains, losses and impairments. | |||||||||||||||||||||||||||||||||
Net securities gains (losses) | ||||||||||||||||||||||||||||||||||
(in millions) | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||||||||
Realized gross gains | $ | 25 | $ | 41 | $ | 30 | ||||||||||||||||||||||||||||
Realized gross losses | — | — | (3 | ) | ||||||||||||||||||||||||||||||
Recognized gross impairments | (1 | ) | (10 | ) | (5 | ) | ||||||||||||||||||||||||||||
Total net securities gains | $ | 24 | $ | 31 | $ | 22 | ||||||||||||||||||||||||||||
Aggregate Fair Value of Investments with Continuous Unrealized Loss Position | The following tables show the aggregate related fair value of investments with a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or more. | |||||||||||||||||||||||||||||||||
Temporarily impaired securities at March 31, 2015 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||
(in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 643 | $ | 4 | $ | — | $ | — | $ | 643 | $ | 4 | ||||||||||||||||||||||
State and political subdivisions | 260 | 15 | 300 | 5 | 560 | 20 | ||||||||||||||||||||||||||||
Agency RMBS | 789 | 13 | 1,575 | 278 | 2,364 | 291 | ||||||||||||||||||||||||||||
Non-agency RMBS | 198 | 1 | 367 | 23 | 565 | 24 | ||||||||||||||||||||||||||||
Other RMBS | — | — | 392 | 19 | 392 | 19 | ||||||||||||||||||||||||||||
Commercial MBS | 123 | — | 221 | 5 | 344 | 5 | ||||||||||||||||||||||||||||
Agency commercial MBS | 853 | 3 | 410 | 4 | 1,263 | 7 | ||||||||||||||||||||||||||||
Asset-backed CLOs | 806 | 1 | — | — | 806 | 1 | ||||||||||||||||||||||||||||
Other asset-backed securities | 865 | 1 | 505 | 3 | 1,370 | 4 | ||||||||||||||||||||||||||||
Corporate bonds | 2 | — | 192 | 2 | 194 | 2 | ||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 1,736 | 3 | — | — | 1,736 | 3 | ||||||||||||||||||||||||||||
Non-agency RMBS (a) | 54 | 1 | 34 | 2 | 88 | 3 | ||||||||||||||||||||||||||||
Total securities available-for-sale (b) | $ | 6,329 | $ | 42 | $ | 3,996 | $ | 341 | $ | 10,325 | $ | 383 | ||||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 1,316 | $ | 2 | $ | 198 | $ | — | $ | 1,514 | $ | 2 | ||||||||||||||||||||||
State and political subdivisions | 4 | 1 | — | — | 4 | 1 | ||||||||||||||||||||||||||||
Agency RMBS | 826 | 3 | 2,434 | 11 | 3,260 | 14 | ||||||||||||||||||||||||||||
Non-agency RMBS | 44 | — | 32 | 2 | 76 | 2 | ||||||||||||||||||||||||||||
Other RMBS | — | — | 185 | 9 | 185 | 9 | ||||||||||||||||||||||||||||
Total securities held-to-maturity | $ | 2,190 | $ | 6 | $ | 2,849 | $ | 22 | $ | 5,039 | $ | 28 | ||||||||||||||||||||||
Total temporarily impaired securities | $ | 8,519 | $ | 48 | $ | 6,845 | $ | 363 | $ | 15,364 | $ | 411 | ||||||||||||||||||||||
(a) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | |||||||||||||||||||||||||||||||||
(b) | Includes gross unrealized losses for 12 months or more of $296 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||||||||||||||||||||||||||||||||
Temporarily impaired securities at Dec. 31, 2014 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||
(in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 6,049 | $ | 15 | $ | — | $ | — | $ | 6,049 | $ | 15 | ||||||||||||||||||||||
U.S. Government agencies | 32 | — | 100 | 2 | 132 | 2 | ||||||||||||||||||||||||||||
State and political subdivisions | 410 | 18 | 393 | 6 | 803 | 24 | ||||||||||||||||||||||||||||
Agency RMBS | 3,385 | 13 | 5,016 | 312 | 8,401 | 325 | ||||||||||||||||||||||||||||
Non-agency RMBS | 143 | 1 | 382 | 25 | 525 | 26 | ||||||||||||||||||||||||||||
Other RMBS | — | — | 449 | 25 | 449 | 25 | ||||||||||||||||||||||||||||
Commercial MBS | 175 | 1 | 394 | 6 | 569 | 7 | ||||||||||||||||||||||||||||
Agency commercial MBS | 719 | 1 | 550 | 8 | 1,269 | 9 | ||||||||||||||||||||||||||||
Asset-backed CLOs | 1,376 | 7 | — | — | 1,376 | 7 | ||||||||||||||||||||||||||||
Other asset-backed securities | 1,078 | 2 | 539 | 4 | 1,617 | 6 | ||||||||||||||||||||||||||||
Corporate bonds | 51 | — | 230 | 7 | 281 | 7 | ||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 2,175 | 2 | — | — | 2,175 | 2 | ||||||||||||||||||||||||||||
Non-agency RMBS (a) | 42 | 1 | 34 | 3 | 76 | 4 | ||||||||||||||||||||||||||||
Total securities available-for-sale (b) | $ | 15,635 | $ | 61 | $ | 8,087 | $ | 398 | $ | 23,722 | $ | 459 | ||||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 1,066 | $ | 6 | $ | 1,559 | $ | 10 | $ | 2,625 | $ | 16 | ||||||||||||||||||||||
U.S. Government agencies | — | — | 340 | 3 | 340 | 3 | ||||||||||||||||||||||||||||
State and political subdivisions | 5 | 1 | — | — | 5 | 1 | ||||||||||||||||||||||||||||
Agency RMBS | 551 | 3 | 3,808 | 41 | 4,359 | 44 | ||||||||||||||||||||||||||||
Non-agency RMBS | 40 | — | 33 | 2 | 73 | 2 | ||||||||||||||||||||||||||||
Other RMBS | — | — | 219 | 8 | 219 | 8 | ||||||||||||||||||||||||||||
Total securities held-to-maturity | $ | 1,662 | $ | 10 | $ | 5,959 | $ | 64 | $ | 7,621 | $ | 74 | ||||||||||||||||||||||
Total temporarily impaired securities | $ | 17,297 | $ | 71 | $ | 14,046 | $ | 462 | $ | 31,343 | $ | 533 | ||||||||||||||||||||||
(a) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | |||||||||||||||||||||||||||||||||
(b) | Includes gross unrealized losses for 12 months or more of $282 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||||||||||||||||||||||||||||||||
Maturity Distribution by Carrying Amount and Yield (on Tax Equivalent Basis) of Investment Securities Portfolio | The following table shows the maturity distribution by carrying amount and yield (on a tax equivalent basis) of our investment securities portfolio at March 31, 2015. | |||||||||||||||||||||||||||||||||
Maturity distribution and yield on investment securities at | U.S. | U.S. | State and | Other bonds, | Mortgage/ | |||||||||||||||||||||||||||||
31-Mar-15 | Treasury | Government | political | notes and | asset-backed and | |||||||||||||||||||||||||||||
agencies | subdivisions | debentures | equity | |||||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||
(dollars in millions) | Amount | Yield (a) | Amount | Yield (a) | Amount | Yield (a) | Amount | Yield (a) | Amount | Yield (a) | Total | |||||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||||||||||||||||
One year or less | $ | 1,759 | 0.95 | % | $ | 126 | 1.86 | % | $ | 462 | 1.4 | % | $ | 7,208 | 0.58 | % | $ | — | — | % | $ | 9,555 | ||||||||||||
Over 1 through 5 years | 10,914 | 0.89 | 259 | 1.66 | 2,938 | 2.26 | 11,783 | 1.03 | — | — | 25,894 | |||||||||||||||||||||||
Over 5 through 10 years | 2,223 | 2.52 | — | — | 1,506 | 3.8 | 2,608 | 2.19 | — | — | 6,337 | |||||||||||||||||||||||
Over 10 years | 3,690 | 3.11 | — | — | 233 | 1.81 | 265 | 1.45 | — | — | 4,188 | |||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | — | — | — | — | 35,263 | 2.69 | 35,263 | |||||||||||||||||||||||
Asset-backed securities | — | — | — | — | — | — | — | — | 5,658 | 1.07 | 5,658 | |||||||||||||||||||||||
Equity securities (b) | — | — | — | — | — | — | — | — | 822 | — | 822 | |||||||||||||||||||||||
Total | $ | 18,586 | 1.53 | % | $ | 385 | 1.73 | % | $ | 5,139 | 2.62 | % | $ | 21,864 | 1.02 | % | $ | 41,743 | 2.42 | % | $ | 87,717 | ||||||||||||
Securities held-to-maturity: | ||||||||||||||||||||||||||||||||||
One year or less | $ | 150 | 0.28 | % | $ | — | — | % | $ | — | — | % | $ | 1,461 | 0.24 | % | $ | — | — | % | $ | 1,611 | ||||||||||||
Over 1 through 5 years | 7,760 | 1.07 | 968 | 1.05 | 1 | 7.32 | 1,323 | 0.58 | — | — | 10,052 | |||||||||||||||||||||||
Over 5 through 10 years | 2,462 | 2.06 | 200 | 1.19 | 5 | 6.95 | 505 | 0.88 | — | — | 3,172 | |||||||||||||||||||||||
Over 10 years | — | — | — | — | 15 | 3.77 | — | — | — | — | 15 | |||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | — | — | — | — | 26,387 | 2.65 | 26,387 | |||||||||||||||||||||||
Total | $ | 10,372 | 1.3 | % | $ | 1,168 | 1.07 | % | $ | 21 | 4.74 | % | $ | 3,289 | 0.48 | % | $ | 26,387 | 2.65 | % | $ | 41,237 | ||||||||||||
(a) | Yields are based upon the amortized cost of securities. | |||||||||||||||||||||||||||||||||
(b) | Includes money market funds. | |||||||||||||||||||||||||||||||||
Projected Weighted-Average Default Rates and Loss Severities | The table below shows the projected weighted-average default rates and loss severities for the 2007, 2006 and late 2005 non-agency RMBS and the securities previously held in the Grantor Trust that we established in connection with the restructuring of our investment securities portfolio in 2009, at March 31, 2015 and Dec. 31, 2014. | |||||||||||||||||||||||||||||||||
Projected weighted-average default rates and loss severities | ||||||||||||||||||||||||||||||||||
31-Mar-15 | Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Default rate | Severity | Default rate | Severity | |||||||||||||||||||||||||||||||
Alt-A | 38 | % | 58 | % | 38 | % | 58 | % | ||||||||||||||||||||||||||
Subprime | 54 | % | 73 | % | 55 | % | 74 | % | ||||||||||||||||||||||||||
Prime | 24 | % | 41 | % | 23 | % | 42 | % | ||||||||||||||||||||||||||
Pre-Tax Securities Gains (Losses) by Type | The following table provides net pre-tax securities gains (losses) by type. | |||||||||||||||||||||||||||||||||
Net securities gains (losses) | ||||||||||||||||||||||||||||||||||
(in millions) | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||||||||
U.S. Treasury | $ | 23 | $ | 13 | $ | 10 | ||||||||||||||||||||||||||||
Non-agency RMBS | (1 | ) | 17 | (2 | ) | |||||||||||||||||||||||||||||
Other | 2 | 1 | 14 | |||||||||||||||||||||||||||||||
Total net securities gains | $ | 24 | $ | 31 | $ | 22 | ||||||||||||||||||||||||||||
Debt Securities Credit Losses Roll Forward Recorded in Earnings | The following table reflects investment securities credit losses recorded in earnings. The beginning balance represents the credit loss component for which OTTI occurred on debt securities in prior periods. The additions represent the first time a debt security was credit impaired or when subsequent credit impairments have occurred. The deductions represent credit losses on securities that have been sold, are required to be sold, or for which it is our intention to sell. | |||||||||||||||||||||||||||||||||
Debt securities credit loss roll forward | ||||||||||||||||||||||||||||||||||
(in millions) | 1Q15 | 1Q14 | ||||||||||||||||||||||||||||||||
Beginning balance as of Jan. 1 | $ | 93 | $ | 119 | ||||||||||||||||||||||||||||||
Add: Initial OTTI credit losses | — | 2 | ||||||||||||||||||||||||||||||||
Subsequent OTTI credit losses | 1 | 3 | ||||||||||||||||||||||||||||||||
Less: Realized losses for securities sold | 2 | 18 | ||||||||||||||||||||||||||||||||
Ending balance as of March 31 | $ | 92 | $ | 106 | ||||||||||||||||||||||||||||||
Loans_and_Asset_Quality_Tables
Loans and Asset Quality (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||
Loan Portfolio | The table below provides the details of our loan portfolio and industry concentrations of credit risk at March 31, 2015 and Dec. 31, 2014. | ||||||||||||||||||||||||||||||||
Loans | March 31, | Dec. 31, 2014 | |||||||||||||||||||||||||||||||
(in millions) | 2015 | ||||||||||||||||||||||||||||||||
Domestic: | |||||||||||||||||||||||||||||||||
Financial institutions | $ | 5,665 | $ | 5,603 | |||||||||||||||||||||||||||||
Commercial | 1,686 | 1,390 | |||||||||||||||||||||||||||||||
Wealth management loans and mortgages | 11,547 | 11,095 | |||||||||||||||||||||||||||||||
Commercial real estate | 3,021 | 2,524 | |||||||||||||||||||||||||||||||
Lease financings | 1,197 | 1,282 | |||||||||||||||||||||||||||||||
Other residential mortgages | 1,181 | 1,222 | |||||||||||||||||||||||||||||||
Overdrafts | 1,513 | 1,348 | |||||||||||||||||||||||||||||||
Other | 1,107 | 1,113 | |||||||||||||||||||||||||||||||
Margin loans | 19,459 | 20,034 | |||||||||||||||||||||||||||||||
Total domestic | 46,376 | 45,611 | |||||||||||||||||||||||||||||||
Foreign: | |||||||||||||||||||||||||||||||||
Financial institutions | 9,002 | 7,716 | |||||||||||||||||||||||||||||||
Commercial | 285 | 252 | |||||||||||||||||||||||||||||||
Wealth management loans and mortgages | 102 | 89 | |||||||||||||||||||||||||||||||
Commercial real estate | 41 | 6 | |||||||||||||||||||||||||||||||
Lease financings | 893 | 889 | |||||||||||||||||||||||||||||||
Other (primarily overdrafts) | 5,520 | 4,569 | |||||||||||||||||||||||||||||||
Margin loans | 107 | — | |||||||||||||||||||||||||||||||
Total foreign | 15,950 | 13,521 | |||||||||||||||||||||||||||||||
Total loans (a) | $ | 62,326 | $ | 59,132 | |||||||||||||||||||||||||||||
(a) | Net of unearned income of $843 million at March 31, 2015 and $866 million at Dec. 31, 2014 primarily on domestic and foreign lease financings. | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses Activity | Transactions in the allowance for credit losses are summarized as follows: | ||||||||||||||||||||||||||||||||
Allowance for credit losses activity for the quarter ended March 31, 2015 | Wealth management loans and mortgages | Other residential mortgages | |||||||||||||||||||||||||||||||
(in millions) | Commercial | Commercial | Financial | Lease | All | Foreign | Total | ||||||||||||||||||||||||||
real estate | institutions | financings | Other | ||||||||||||||||||||||||||||||
Beginning balance | $ | 60 | $ | 50 | $ | 31 | $ | 32 | $ | 22 | $ | 41 | $ | — | $ | 44 | $ | 280 | |||||||||||||||
Charge-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Recoveries | — | — | — | — | — | 1 | — | — | 1 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | — | — | — | — | — | 1 | — | — | 1 | ||||||||||||||||||||||||
Provision | 5 | 3 | 2 | (1 | ) | (1 | ) | (2 | ) | — | (4 | ) | 2 | ||||||||||||||||||||
Ending balance | $ | 65 | $ | 53 | $ | 33 | $ | 31 | $ | 21 | $ | 40 | $ | — | $ | 40 | $ | 283 | |||||||||||||||
Allowance for: | |||||||||||||||||||||||||||||||||
Loan losses | $ | 20 | $ | 31 | $ | 19 | $ | 31 | $ | 16 | $ | 40 | $ | — | $ | 33 | $ | 190 | |||||||||||||||
Lending-related commitments | 45 | 22 | 14 | — | 5 | — | — | 7 | 93 | ||||||||||||||||||||||||
Individually evaluated for impairment: | |||||||||||||||||||||||||||||||||
Loan balance | $ | — | $ | — | $ | — | $ | — | $ | 8 | $ | — | $ | — | $ | — | $ | 8 | |||||||||||||||
Allowance for loan losses | — | — | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||
Collectively evaluated for impairment: | |||||||||||||||||||||||||||||||||
Loan balance | $ | 1,686 | $ | 2,881 | $ | 5,665 | $ | 1,197 | $ | 11,539 | $ | 1,181 | $ | 22,079 | (a) | $ | 15,950 | $ | 62,178 | ||||||||||||||
Allowance for loan losses | 20 | 31 | 19 | 31 | 15 | 40 | — | 33 | 189 | ||||||||||||||||||||||||
(a) | Includes $1,513 million of domestic overdrafts, $19,459 million of margin loans and $1,107 million of other loans at March 31, 2015. | ||||||||||||||||||||||||||||||||
Allowance for credit losses activity for the quarter ended Dec. 31, 2014 | Wealth management loans and mortgages | Other residential mortgages | |||||||||||||||||||||||||||||||
(in millions) | Commercial | Commercial | Financial | Lease | All | Foreign | Total | ||||||||||||||||||||||||||
real estate | institutions | financings | Other | ||||||||||||||||||||||||||||||
Beginning balance | $ | 71 | $ | 47 | $ | 25 | $ | 34 | $ | 22 | $ | 48 | $ | — | $ | 41 | $ | 288 | |||||||||||||||
Charge-offs | (8 | ) | (2 | ) | — | — | (1 | ) | — | — | — | (11 | ) | ||||||||||||||||||||
Recoveries | — | — | 1 | — | 1 | — | — | — | 2 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | (8 | ) | (2 | ) | 1 | — | — | — | — | — | (9 | ) | |||||||||||||||||||||
Provision | (3 | ) | 5 | 5 | (2 | ) | — | (7 | ) | — | 3 | 1 | |||||||||||||||||||||
Ending balance | $ | 60 | $ | 50 | $ | 31 | $ | 32 | $ | 22 | $ | 41 | $ | — | $ | 44 | $ | 280 | |||||||||||||||
Allowance for: | |||||||||||||||||||||||||||||||||
Loan losses | $ | 17 | $ | 32 | $ | 17 | $ | 32 | $ | 17 | $ | 41 | $ | — | $ | 35 | $ | 191 | |||||||||||||||
Lending-related commitments | 43 | 18 | 14 | — | 5 | — | — | 9 | 89 | ||||||||||||||||||||||||
Individually evaluated for impairment: | |||||||||||||||||||||||||||||||||
Loan balance | $ | — | $ | — | $ | — | $ | — | $ | 8 | $ | — | $ | — | $ | — | $ | 8 | |||||||||||||||
Allowance for loan losses | — | — | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||
Collectively evaluated for impairment: | |||||||||||||||||||||||||||||||||
Loan balance | $ | 1,390 | $ | 2,503 | $ | 5,603 | $ | 1,282 | $ | 11,087 | $ | 1,222 | $ | 22,495 | (a) | $ | 13,521 | $ | 59,103 | ||||||||||||||
Allowance for loan losses | 17 | 32 | 17 | 32 | 16 | 41 | — | 35 | 190 | ||||||||||||||||||||||||
(a) | Includes $1,348 million of domestic overdrafts, $20,034 million of margin loans and $1,113 million of other loans at Dec. 31, 2014. | ||||||||||||||||||||||||||||||||
Allowance for credit losses activity for the quarter ended March 31, 2014 | Wealth management loans and mortgages | Other | All | Foreign | Total | ||||||||||||||||||||||||||||
residential | Other | ||||||||||||||||||||||||||||||||
(in millions) | Commercial | Commercial | Financial | Lease | mortgages | ||||||||||||||||||||||||||||
real estate | institutions | financings | |||||||||||||||||||||||||||||||
Beginning balance | $ | 83 | $ | 41 | $ | 49 | $ | 37 | $ | 24 | $ | 54 | $ | — | $ | 56 | $ | 344 | |||||||||||||||
Charge-offs | — | — | — | — | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||||||||
Recoveries | — | — | — | — | — | 1 | — | — | 1 | ||||||||||||||||||||||||
Net (charge-offs) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Provision | (4 | ) | 1 | (1 | ) | (2 | ) | (1 | ) | (4 | ) | — | (7 | ) | (18 | ) | |||||||||||||||||
Ending balance | $ | 79 | $ | 42 | $ | 48 | $ | 35 | $ | 23 | $ | 50 | $ | — | $ | 49 | $ | 326 | |||||||||||||||
Allowance for: | |||||||||||||||||||||||||||||||||
Loan losses | $ | 20 | $ | 23 | $ | 9 | $ | 35 | $ | 18 | $ | 50 | $ | — | $ | 43 | $ | 198 | |||||||||||||||
Lending-related commitments | 59 | 19 | 39 | — | 5 | — | — | 6 | 128 | ||||||||||||||||||||||||
Individually evaluated for impairment: | |||||||||||||||||||||||||||||||||
Loan balance | $ | 13 | $ | 3 | $ | — | $ | — | $ | 10 | $ | — | $ | — | $ | 7 | $ | 33 | |||||||||||||||
Allowance for loan losses | 3 | 1 | — | — | 2 | — | — | 2 | 8 | ||||||||||||||||||||||||
Collectively evaluated for impairment: | |||||||||||||||||||||||||||||||||
Loan balance | $ | 1,741 | $ | 2,125 | $ | 4,492 | $ | 1,308 | $ | 9,912 | $ | 1,346 | $ | 18,296 | (a) | $ | 14,783 | $ | 54,003 | ||||||||||||||
Allowance for loan losses | 17 | 22 | 9 | 35 | 16 | 50 | — | 41 | 190 | ||||||||||||||||||||||||
(a) | Includes $1,078 million of domestic overdrafts, $16,430 million of margin loans and $788 million of other loans at March 31, 2014. | ||||||||||||||||||||||||||||||||
Nonperforming Assets | The table below presents the distribution of our nonperforming assets. | ||||||||||||||||||||||||||||||||
Nonperforming assets | March 31, 2015 | Dec. 31, 2014 | |||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||
Nonperforming loans: | |||||||||||||||||||||||||||||||||
Domestic: | |||||||||||||||||||||||||||||||||
Other residential mortgages | $ | 111 | $ | 112 | |||||||||||||||||||||||||||||
Wealth management loans and mortgages | 12 | 12 | |||||||||||||||||||||||||||||||
Commercial real estate | 1 | 1 | |||||||||||||||||||||||||||||||
Total nonperforming loans | 124 | 125 | |||||||||||||||||||||||||||||||
Other assets owned | 4 | 3 | |||||||||||||||||||||||||||||||
Total nonperforming assets (a) | $ | 128 | $ | 128 | |||||||||||||||||||||||||||||
(a) | Loans of consolidated investment management funds are not part of BNY Mellon’s loan portfolio. Included in the loans of consolidated investment management funds are nonperforming loans of $73 million at March 31, 2015 and $53 million at Dec. 31, 2014. These loans are recorded at fair value and therefore do not impact the provision for credit losses and allowance for loan losses, and accordingly are excluded from the nonperforming assets table above. | ||||||||||||||||||||||||||||||||
Lost Interest | Lost interest | ||||||||||||||||||||||||||||||||
Lost interest | |||||||||||||||||||||||||||||||||
(in millions) | 1Q15 | 4Q14 | 1Q14 | ||||||||||||||||||||||||||||||
Amount by which interest income recognized on nonperforming loans exceeded reversals | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Amount by which interest income would have increased if nonperforming loans at period-end had been performing for the entire period | $ | 2 | $ | 2 | $ | 2 | |||||||||||||||||||||||||||
Information about Impaired Loans | The tables below provide information about our impaired loans. We use the discounted cash flow method as the primary method for valuing impaired loans. | ||||||||||||||||||||||||||||||||
Impaired loans | Quarter ended | ||||||||||||||||||||||||||||||||
March 31, 2015 | Dec. 31, 2014 | March 31, 2014 | |||||||||||||||||||||||||||||||
(in millions) | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||||||||||
recorded | income | recorded | income | recorded | income | ||||||||||||||||||||||||||||
investment | recognized | investment | recognized | investment | recognized | ||||||||||||||||||||||||||||
Impaired loans with an allowance: | |||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 6 | $ | — | $ | 14 | $ | — | |||||||||||||||||||||
Commercial real estate | — | — | 1 | — | 3 | — | |||||||||||||||||||||||||||
Financial institutions | — | — | — | — | — | — | |||||||||||||||||||||||||||
Wealth management loans and mortgages | 6 | — | 7 | — | 9 | — | |||||||||||||||||||||||||||
Foreign | — | — | — | — | 6 | — | |||||||||||||||||||||||||||
Total impaired loans with an allowance | 6 | — | 14 | — | 32 | — | |||||||||||||||||||||||||||
Impaired loans without an allowance: | |||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||||||||||||
Commercial real estate | — | — | 1 | — | 1 | — | |||||||||||||||||||||||||||
Financial institutions | — | — | — | — | — | — | |||||||||||||||||||||||||||
Wealth management loans and mortgages | 2 | — | 2 | — | 2 | — | |||||||||||||||||||||||||||
Total impaired loans without an allowance (a) | 2 | — | 3 | — | 3 | — | |||||||||||||||||||||||||||
Total impaired loans | $ | 8 | $ | — | $ | 17 | $ | — | $ | 35 | $ | — | |||||||||||||||||||||
(a) | When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans. | ||||||||||||||||||||||||||||||||
Impaired loans | March 31, 2015 | Dec. 31, 2014 | |||||||||||||||||||||||||||||||
(in millions) | Recorded | Unpaid | Related | Recorded | Unpaid | Related | |||||||||||||||||||||||||||
investment | principal | allowance (a) | investment | principal | allowance (a) | ||||||||||||||||||||||||||||
balance | balance | ||||||||||||||||||||||||||||||||
Impaired loans with an allowance: | |||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Commercial real estate | — | 3 | — | — | — | — | |||||||||||||||||||||||||||
Financial institutions | — | — | — | — | — | — | |||||||||||||||||||||||||||
Wealth management loans and mortgages | 6 | 6 | 1 | 6 | 6 | 1 | |||||||||||||||||||||||||||
Foreign | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total impaired loans with an allowance | 6 | 9 | 1 | 6 | 6 | 1 | |||||||||||||||||||||||||||
Impaired loans without an allowance: | |||||||||||||||||||||||||||||||||
Commercial real estate | — | — | N/A | 1 | 3 | N/A | |||||||||||||||||||||||||||
Wealth management loans and mortgages | 2 | 2 | N/A | 2 | 2 | N/A | |||||||||||||||||||||||||||
Total impaired loans without an allowance (b) | 2 | 2 | N/A | 3 | 5 | N/A | |||||||||||||||||||||||||||
Total impaired loans (c) | $ | 8 | $ | 11 | $ | 1 | $ | 9 | $ | 11 | $ | 1 | |||||||||||||||||||||
(a) | The allowance for impaired loans is included in the allowance for loan losses. | ||||||||||||||||||||||||||||||||
(b) | When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans. | ||||||||||||||||||||||||||||||||
(c) | Excludes an aggregate of less than $1 million of impaired loans in amounts individually less than $1 million at both March 31, 2015 and Dec. 31, 2014. The allowance for loan loss associated with these loans totaled less than $1 million at both March 31, 2015 and Dec. 31, 2014. | ||||||||||||||||||||||||||||||||
Information about Past Due Loans | The table below sets forth information about our past due loans. | ||||||||||||||||||||||||||||||||
Past due loans and still accruing interest | March 31, 2015 | Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Days past due | Total | Days past due | Total | ||||||||||||||||||||||||||||||
(in millions) | 30-59 | 60-89 | >90 | past due | 30-59 | 60-89 | >90 | past due | |||||||||||||||||||||||||
Domestic: | |||||||||||||||||||||||||||||||||
Financial institutions | $ | 6 | $ | — | $ | — | $ | 6 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Wealth management loans and mortgages | 48 | — | — | 48 | 45 | — | 1 | 46 | |||||||||||||||||||||||||
Commercial real estate | 43 | — | — | 43 | 79 | — | — | 79 | |||||||||||||||||||||||||
Other residential mortgages | 20 | 5 | 4 | 29 | 23 | 3 | 5 | 31 | |||||||||||||||||||||||||
Total domestic | 117 | 5 | 4 | 126 | 147 | 3 | 6 | 156 | |||||||||||||||||||||||||
Foreign: | |||||||||||||||||||||||||||||||||
Financial institutions (a) | 30 | 20 | — | 50 | — | — | — | — | |||||||||||||||||||||||||
Total past due loans | $ | 147 | $ | 25 | $ | 4 | $ | 176 | $ | 147 | $ | 3 | $ | 6 | $ | 156 | |||||||||||||||||
(a) | Substantially all of these past due loans have been repaid subsequent to March 31, 2015. | ||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | The following table presents TDRs that occurred in the first quarter of 2015, fourth quarter of 2014 and first quarter of 2014. | ||||||||||||||||||||||||||||||||
TDRs | 1Q15 | 4Q14 | 1Q14 | ||||||||||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | |||||||||||||||||||||||||||||||
recorded investment | recorded investment | recorded investment | |||||||||||||||||||||||||||||||
(dollars in millions) | Number of | Pre-modification | Post-modification | Number of contracts | Pre-modification | Post-modification | Number of contracts | Pre-modification | Post-modification | ||||||||||||||||||||||||
contracts | |||||||||||||||||||||||||||||||||
Other residential mortgages | 19 | $ | 4 | $ | 4 | 22 | $ | 3 | $ | 4 | 31 | $ | 5 | $ | 5 | ||||||||||||||||||
Foreign | — | — | — | — | — | — | 1 | 5 | 4 | ||||||||||||||||||||||||
Total TDRs | 19 | $ | 4 | $ | 4 | 22 | $ | 3 | $ | 4 | 32 | $ | 10 | $ | 9 | ||||||||||||||||||
Credit Quality Indicators - Commercial Portfolio - Credit Risk Profile by Creditworthiness Category | The following tables set forth information about credit quality indicators. | ||||||||||||||||||||||||||||||||
Commercial loan portfolio | |||||||||||||||||||||||||||||||||
Commercial loan portfolio – Credit risk profile by creditworthiness category | |||||||||||||||||||||||||||||||||
Commercial | Commercial real estate | Financial institutions | |||||||||||||||||||||||||||||||
(in millions) | March 31, | Dec. 31, 2014 | March 31, | Dec. 31, 2014 | March 31, | Dec. 31, 2014 | |||||||||||||||||||||||||||
2015 | 2015 | 2015 | |||||||||||||||||||||||||||||||
Investment grade | $ | 1,711 | $ | 1,381 | $ | 2,082 | $ | 1,641 | $ | 12,753 | $ | 11,576 | |||||||||||||||||||||
Non-investment grade | 260 | 261 | 980 | 889 | 1,914 | 1,743 | |||||||||||||||||||||||||||
Total | $ | 1,971 | $ | 1,642 | $ | 3,062 | $ | 2,530 | $ | 14,667 | $ | 13,319 | |||||||||||||||||||||
Credit Quality Indicators - Wealth Management Loans and Mortgages - Credit Risk Profile by Internally Assigned Grade | Wealth management loans and mortgages | ||||||||||||||||||||||||||||||||
Wealth management loans and mortgages – Credit risk | |||||||||||||||||||||||||||||||||
profile by internally assigned grade | |||||||||||||||||||||||||||||||||
(in millions) | March 31, | Dec. 31, 2014 | |||||||||||||||||||||||||||||||
2015 | |||||||||||||||||||||||||||||||||
Wealth management loans: | |||||||||||||||||||||||||||||||||
Investment grade | $ | 5,848 | $ | 5,621 | |||||||||||||||||||||||||||||
Non-investment grade | 88 | 29 | |||||||||||||||||||||||||||||||
Wealth management mortgages | 5,713 | 5,534 | |||||||||||||||||||||||||||||||
Total | $ | 11,649 | $ | 11,184 | |||||||||||||||||||||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill by Business Segment | The tables below provide a breakdown of goodwill by business. | |||||||||||||||
Goodwill by business | Investment | Investment | Other | Consolidated | ||||||||||||
(in millions) | Management | Services | ||||||||||||||
Balance at Dec. 31, 2014 | $ | 9,352 | $ | 8,467 | $ | 50 | $ | 17,869 | ||||||||
Acquisitions | 10 | — | — | 10 | ||||||||||||
Foreign currency translation | (109 | ) | (107 | ) | — | (216 | ) | |||||||||
Balance at March 31, 2015 | $ | 9,253 | $ | 8,360 | $ | 50 | $ | 17,663 | ||||||||
Goodwill by business | Investment | Investment | Other | Consolidated | ||||||||||||
(in millions) | Management | Services | ||||||||||||||
Balance at Dec. 31, 2013 | $ | 9,473 | $ | 8,550 | $ | 50 | $ | 18,073 | ||||||||
Foreign currency translation | 20 | 7 | — | 27 | ||||||||||||
Balance at March 31, 2014 | $ | 9,493 | $ | 8,557 | $ | 50 | $ | 18,100 | ||||||||
Intangible Assets by Business Segment | The tables below provide a breakdown of intangible assets by business. | |||||||||||||||
Intangible assets – net carrying amount by business | Investment | Investment | Other | Consolidated | ||||||||||||
(in millions) | Management | Services | ||||||||||||||
Balance at Dec. 31, 2014 | $ | 1,923 | $ | 1,355 | $ | 849 | $ | 4,127 | ||||||||
Acquisitions | 9 | — | — | 9 | ||||||||||||
Amortization | (25 | ) | (41 | ) | — | (66 | ) | |||||||||
Foreign currency translation | (16 | ) | (7 | ) | — | (23 | ) | |||||||||
Balance at March 31, 2015 | $ | 1,891 | $ | 1,307 | $ | 849 | $ | 4,047 | ||||||||
Intangible assets – net carrying amount by business | Investment | Investment | Other | Consolidated | ||||||||||||
(in millions) | Management | Services | ||||||||||||||
Balance at Dec. 31, 2013 | $ | 2,065 | $ | 1,538 | $ | 849 | $ | 4,452 | ||||||||
Amortization | (31 | ) | (44 | ) | — | (75 | ) | |||||||||
Foreign currency translation | 3 | — | — | 3 | ||||||||||||
Balance at March 31, 2014 | $ | 2,037 | $ | 1,494 | $ | 849 | $ | 4,380 | ||||||||
Intangible Assets by Type | The table below provides a breakdown of intangible assets by type. | |||||||||||||||
Intangible assets | 31-Mar-15 | Dec. 31, 2014 | ||||||||||||||
(in millions) | Gross | Accumulated | Net | Remaining | Net | |||||||||||
carrying | amortization | carrying | weighted- | carrying | ||||||||||||
amount | amount | average | amount | |||||||||||||
amortization | ||||||||||||||||
period | ||||||||||||||||
Subject to amortization: | ||||||||||||||||
Customer relationships—Investment Management | $ | 1,733 | $ | (1,292 | ) | $ | 441 | 11 years | $ | 464 | ||||||
Customer contracts—Investment Services | 2,314 | (1,386 | ) | 928 | 11 years | 974 | ||||||||||
Other | 75 | (63 | ) | 12 | 4 years | 14 | ||||||||||
Total subject to amortization | 4,122 | (2,741 | ) | 1,381 | 11 years | 1,452 | ||||||||||
Not subject to amortization: (a) | ||||||||||||||||
Trade name | 1,358 | N/A | 1,358 | N/A | 1,360 | |||||||||||
Customer relationships | 1,308 | N/A | 1,308 | N/A | 1,315 | |||||||||||
Total not subject to amortization | 2,666 | N/A | 2,666 | N/A | 2,675 | |||||||||||
Total intangible assets | $ | 6,788 | $ | (2,741 | ) | $ | 4,047 | N/A | $ | 4,127 | ||||||
(a) | Intangible assets not subject to amortization have an indefinite life. | |||||||||||||||
N/A - Not applicable. | ||||||||||||||||
Estimated Annual Amortization Expense | Estimated annual amortization expense for current intangibles for the next five years is as follows: | |||||||||||||||
For the year ended | Estimated amortization expense | |||||||||||||||
Dec. 31, | (in millions) | |||||||||||||||
2015 | $ | 266 | ||||||||||||||
2016 | 240 | |||||||||||||||
2017 | 216 | |||||||||||||||
2018 | 181 | |||||||||||||||
2019 | 108 | |||||||||||||||
Other_Assets_Tables
Other Assets (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Other Assets [Abstract] | ||||||||||||||||||||
Other Assets | ||||||||||||||||||||
Other assets | March 31, | Dec. 31, | ||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||
Corporate/bank owned life insurance | $ | 4,618 | $ | 4,598 | ||||||||||||||||
Accounts receivable | 4,534 | 4,166 | ||||||||||||||||||
Fails to deliver | 3,189 | 1,351 | ||||||||||||||||||
Equity in joint venture and other investments (a) | 3,170 | 3,287 | ||||||||||||||||||
Income taxes receivable | 1,552 | 2,142 | ||||||||||||||||||
Software | 1,332 | 1,332 | ||||||||||||||||||
Fair value of hedging derivatives | 1,038 | 851 | ||||||||||||||||||
Prepaid pension assets | 572 | 708 | ||||||||||||||||||
Prepaid expenses | 478 | 451 | ||||||||||||||||||
Due from customers on acceptances | 304 | 247 | ||||||||||||||||||
Other | 1,528 | 1,357 | ||||||||||||||||||
Total other assets | $ | 22,315 | $ | 20,490 | ||||||||||||||||
(a) | Includes Federal Reserve Bank stock of $448 million and $447 million, respectively, at cost. | |||||||||||||||||||
Seed Capital and Private Equity Investments Valued Using Net Asset Value | The table below presents information about BNY Mellon’s investments in seed capital and private equity investments that have been valued using NAV. | |||||||||||||||||||
Seed capital and private equity investments valued using NAV | ||||||||||||||||||||
31-Mar-15 | Dec. 31, 2014 | |||||||||||||||||||
(dollar amounts in millions) | Fair | Unfunded | Redemption | Redemption | Fair | Unfunded | Redemption | Redemption | ||||||||||||
value | commitments | frequency | notice period | value | commitments | frequency | notice period | |||||||||||||
Seed capital and other funds (a) | $ | 292 | $ | — | Daily-quarterly | 0-180 days | $ | 307 | $ | — | Daily-quarterly | 0-180 days | ||||||||
Private equity investments (b)(c) | 27 | 56 | N/A | N/A | 35 | 45 | N/A | N/A | ||||||||||||
Total | $ | 319 | $ | 56 | $ | 342 | $ | 45 | ||||||||||||
(a) | Other funds include various leveraged loans, hedge funds and structured credit funds. Redemption notice periods vary by fund. | |||||||||||||||||||
(b) | Private equity funds primarily include numerous venture capital funds that invest in various sectors of the economy. Private equity funds do not have redemption rights. Distributions from such funds will be received as the underlying investments in the funds are liquidated. | |||||||||||||||||||
(c) | Includes investments and unfunded commitments related to SBICs, which are compliant with the Volcker Rule, of $24 million and $56 million, respectively, at March 31, 2015 and $18 million and $45 million, respectively, at Dec. 31, 2014. | |||||||||||||||||||
N/A - Not applicable. |
Net_Interest_Revenue_Tables
Net Interest Revenue (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Interest Revenue (Expense), Net [Abstract] | ||||||||||
Net Interest Revenue | The following table provides the components of net interest revenue presented on the consolidated income statement. | |||||||||
Net interest revenue | Quarter ended | |||||||||
(in millions) | March 31, 2015 | Dec. 31, 2014 | March 31, 2014 | |||||||
Interest revenue | ||||||||||
Non-margin loans | $ | 173 | $ | 178 | $ | 169 | ||||
Margin loans | 50 | 48 | 42 | |||||||
Securities: | ||||||||||
Taxable | 439 | 417 | 405 | |||||||
Exempt from federal income taxes | 22 | 22 | 27 | |||||||
Total securities | 461 | 439 | 432 | |||||||
Deposits with banks | 30 | 30 | 73 | |||||||
Deposits with the Federal Reserve and other central banks | 45 | 55 | 46 | |||||||
Federal funds sold and securities purchased under resale agreements | 30 | 26 | 17 | |||||||
Trading assets | 18 | 26 | 33 | |||||||
Total interest revenue | 807 | 802 | 812 | |||||||
Interest expense | ||||||||||
Deposits | 15 | 13 | 22 | |||||||
Federal funds purchased and securities sold under repurchase agreements | (3 | ) | (2 | ) | (4 | ) | ||||
Trading liabilities | 2 | 4 | 8 | |||||||
Other borrowed funds | 2 | 2 | 1 | |||||||
Commercial paper | — | 1 | — | |||||||
Customer payables | 2 | 3 | 2 | |||||||
Long-term debt | 61 | 69 | 55 | |||||||
Total interest expense | 79 | 90 | 84 | |||||||
Net interest revenue | $ | 728 | $ | 712 | $ | 728 | ||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||||||
Net Periodic Benefit Cost (Credit) | The components of net periodic benefit cost are as follows. | |||||||||||||||||||
Net periodic benefit cost (credit) | Quarter ended | |||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||
(in millions) | Domestic pension benefits | Foreign pension benefits | Health care benefits | Domestic pension benefits | Foreign pension benefits | Health care benefits | ||||||||||||||
Service cost | $ | 15 | $ | 8 | $ | 1 | $ | 14 | $ | 9 | $ | 1 | ||||||||
Interest cost | 43 | 10 | 2 | 45 | 11 | 3 | ||||||||||||||
Expected return on assets | (83 | ) | (13 | ) | (2 | ) | (79 | ) | (15 | ) | (2 | ) | ||||||||
Curtailment (gain)/loss | (30 | ) | — | — | — | — | — | |||||||||||||
Other | 31 | 6 | — | 28 | 4 | — | ||||||||||||||
Net periodic benefit cost (credit) | $ | (24 | ) | $ | 11 | $ | 1 | $ | 8 | $ | 9 | $ | 2 | |||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Streamlining Actions | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Activity in Restructuring Reserve | The following table presents the activity in the reserve through March 31, 2015. | |||||||||
Streamlining actions 2014 – restructuring reserve activity | ||||||||||
(in millions) | Total | |||||||||
Original restructuring charge | $ | 125 | ||||||||
Net additional charges | 59 | |||||||||
Utilization | (92 | ) | ||||||||
Balance at Dec. 31, 2014 | $ | 92 | ||||||||
Net additional (recoveries) | (2 | ) | ||||||||
Utilization | (25 | ) | ||||||||
Balance at March 31, 2015 | $ | 65 | ||||||||
Restructuring Charges by Business Segment | The table below presents the restructuring charge if it had been allocated by business. | |||||||||
Streamlining actions 2014 – restructuring charge by business | Total charges since inception | |||||||||
(in millions) | 1Q15 | 4Q14 | ||||||||
Investment Management | $ | — | $ | 1 | $ | 23 | ||||
Investment Services | 2 | (16 | ) | 85 | ||||||
Other segment (including Business Partners) | (4 | ) | 21 | 74 | ||||||
Total restructuring charge (recovery) | $ | (2 | ) | $ | 6 | $ | 182 | |||
Operational Efficiency Initiatives 2011 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Activity in Restructuring Reserve | The following table presents the activity in the restructuring reserve related to the Operational Excellence Initiatives through March 31, 2015. | |||||||||
Operational Excellence Initiatives 2011 – restructuring reserve activity | ||||||||||
(in millions) | Severance | Other | Total | |||||||
Original restructuring charge | $ | 78 | $ | 29 | $ | 107 | ||||
Net additional charges (net recovery/gain) | 93 | (57 | ) | 36 | ||||||
Utilization | (143 | ) | 28 | (115 | ) | |||||
Balance at Dec. 31, 2014 | 28 | — | 28 | |||||||
Net additional (recoveries) | (2 | ) | — | (2 | ) | |||||
Utilization | (4 | ) | — | (4 | ) | |||||
Balance at March 31, 2015 | $ | 22 | $ | — | $ | 22 | ||||
Restructuring Charges by Business Segment | The table below presents the restructuring charge if it had been allocated by business. | |||||||||
Operational Excellence Initiatives 2011 – restructuring charge (recovery) by business | Total charges since inception | |||||||||
(in millions) | 1Q15 | 4Q14 | ||||||||
Investment Management | $ | — | $ | 1 | $ | 51 | ||||
Investment Services | — | (2 | ) | 84 | ||||||
Other segment (including Business Partners) | (2 | ) | (5 | ) | 6 | |||||
Total restructuring charge (recovery) | $ | (2 | ) | $ | (6 | ) | $ | 141 | ||
Securitizations_and_Variable_I1
Securitizations and Variable Interest Entities (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Variable Interest Entity [Line Items] | |||||||||||
Incremental Assets and Liabilities of Variable Interest Entities Included in Consolidated Financial Statements | The following tables present the incremental assets and liabilities included in BNY Mellon’s consolidated financial statements, after applying intercompany eliminations, as of March 31, 2015 and Dec. 31, 2014, based on the assessments performed in accordance with ASC 810 and ASU 2009-17. The net assets of any consolidated VIE are solely available to settle the liabilities of the VIE and to settle any investors’ ownership liquidation requests, including any seed capital invested in the VIE by BNY Mellon. | ||||||||||
Investments consolidated under ASC 810 and ASU 2009-17 | |||||||||||
at March 31, 2015 | |||||||||||
(in millions) | Investment | Securitizations | Total | ||||||||
Management | consolidated | ||||||||||
funds | investments | ||||||||||
Available-for-sale securities | $ | — | $ | 400 | $ | 400 | |||||
Trading assets | 7,852 | — | 7,852 | ||||||||
Other assets | 573 | — | 573 | ||||||||
Total assets | $ | 8,425 | (a) | $ | 400 | $ | 8,825 | ||||
Trading liabilities | $ | 6,584 | $ | — | $ | 6,584 | |||||
Other liabilities | 36 | 355 | 391 | ||||||||
Total liabilities | $ | 6,620 | (a) | $ | 355 | $ | 6,975 | ||||
Nonredeemable noncontrolling interests | $ | 1,337 | (a) | $ | — | $ | 1,337 | ||||
(a) | Includes voting interest entities with assets of $809 million, liabilities of $142 million and nonredeemable noncontrolling interests of $479 million. | ||||||||||
Investments consolidated under ASC 810 and ASU 2009-17 | |||||||||||
at Dec. 31, 2014 | |||||||||||
(in millions) | Investment | Securitizations | Total | ||||||||
Management | consolidated | ||||||||||
funds | investments | ||||||||||
Available-for-sale securities | $ | — | $ | 414 | $ | 414 | |||||
Trading assets | 8,678 | — | 8,678 | ||||||||
Other assets | 604 | — | 604 | ||||||||
Total assets | $ | 9,282 | (a) | $ | 414 | $ | 9,696 | ||||
Trading liabilities | $ | 7,660 | $ | — | $ | 7,660 | |||||
Other liabilities | 9 | 363 | 372 | ||||||||
Total liabilities | $ | 7,669 | (a) | $ | 363 | $ | 8,032 | ||||
Nonredeemable noncontrolling interests | $ | 1,033 | (a) | $ | — | $ | 1,033 | ||||
(a) | Includes voting interest entities with assets of $855 million, liabilities of $148 million and nonredeemable noncontrolling interests of $544 million. | ||||||||||
Variable Interest Entity, Not Primary Beneficiary | |||||||||||
Variable Interest Entity [Line Items] | |||||||||||
Schedule of Variable Interest Entities | As of March 31, 2015 and Dec. 31, 2014, the following assets related to the VIEs where BNY Mellon is not the primary beneficiary are included in our consolidated financial statements. | ||||||||||
Non-consolidated VIEs at March 31, 2015 | |||||||||||
(in millions) | Assets | Liabilities | Maximum loss exposure | ||||||||
Other | $ | 119 | $ | — | $ | 119 | |||||
Non-consolidated VIEs at Dec. 31, 2014 | |||||||||||
(in millions) | Assets | Liabilities | Maximum loss exposure | ||||||||
Other | $ | 148 | $ | — | $ | 148 | |||||
Preferred_Stock_Tables
Preferred Stock (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||
Preferred Stock Summary | BNY Mellon has 100 million authorized shares of preferred stock with a par value of $0.01. The table below summarizes BNY Mellon’s preferred stock issued and outstanding at March 31, 2015 and Dec. 31, 2014. | ||||||||||||||||||
Preferred stock summary | Liquidation | Total shares issued and outstanding | |||||||||||||||||
preference | |||||||||||||||||||
per share | Carrying value (a) | ||||||||||||||||||
(dollars in millions, unless | Per annum dividend rate | (in dollars) | 31-Mar-15 | Dec. 31, 2014 | 31-Mar-15 | Dec. 31, 2014 | |||||||||||||
otherwise noted) | |||||||||||||||||||
Series A | Noncumulative Perpetual Preferred Stock | Greater of (i) three-month LIBOR plus 0.565% for the related distribution period; or (ii) 4.000% | $ | 100,000 | 5,001 | 5,001 | $ | 500 | $ | 500 | |||||||||
Series C | Noncumulative Perpetual Preferred Stock | 5.2 | % | $ | 100,000 | 5,825 | 5,825 | 568 | 568 | ||||||||||
Series D | Noncumulative Perpetual Preferred Stock | 4.50% commencing Dec. 20, 2013 to but excluding June 20, 2023, then a floating rate equal to the three-month LIBOR plus 2.46% | $ | 100,000 | 5,000 | 5,000 | 494 | 494 | |||||||||||
Total | 15,826 | 15,826 | $ | 1,562 | $ | 1,562 | |||||||||||||
(a) | The carrying value of the Series C and Series D preferred stock is recorded net of issuance costs. |
Other_Comprehensive_Income_Los1
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||
Components of Other Comprehensive Income | ||||||||||||||||||||||||||||||
Components of other comprehensive income (loss) | ||||||||||||||||||||||||||||||
Quarter ended | ||||||||||||||||||||||||||||||
31-Mar-15 | Dec. 31, 2014 | 31-Mar-14 | ||||||||||||||||||||||||||||
(in millions) | Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | |||||||||||||||||||||
amount | (expense) | amount | amount | (expense) | amount | amount | (expense) | amount | ||||||||||||||||||||||
benefit | benefit | benefit | ||||||||||||||||||||||||||||
Foreign currency translation: | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments arising during the period | $ | (615 | ) | $ | (98 | ) | $ | (713 | ) | $ | (283 | ) | $ | (48 | ) | $ | (331 | ) | $ | 24 | $ | 13 | $ | 37 | ||||||
Total foreign currency translation | (615 | ) | (98 | ) | (713 | ) | (283 | ) | (48 | ) | (331 | ) | 24 | 13 | 37 | |||||||||||||||
Unrealized gain (loss) on assets available-for-sale: | ||||||||||||||||||||||||||||||
Unrealized gain (loss) arising during period | 202 | (68 | ) | 134 | 63 | (26 | ) | 37 | 250 | (88 | ) | 162 | ||||||||||||||||||
Reclassification adjustment (a) | (24 | ) | 9 | (15 | ) | (31 | ) | 13 | (18 | ) | (22 | ) | 9 | (13 | ) | |||||||||||||||
Net unrealized gain (loss) on assets available-for-sale | 178 | (59 | ) | 119 | 32 | (13 | ) | 19 | 228 | (79 | ) | 149 | ||||||||||||||||||
Defined benefit plans: | ||||||||||||||||||||||||||||||
Prior service cost arising during the period | — | — | — | 3 | (1 | ) | 2 | — | — | — | ||||||||||||||||||||
Net gain (loss) arising during the period | (185 | ) | 76 | (109 | ) | (766 | ) | 287 | (479 | ) | — | — | — | |||||||||||||||||
Foreign exchange adjustment | — | — | — | (2 | ) | 1 | (1 | ) | — | — | — | |||||||||||||||||||
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (a) | 7 | (2 | ) | 5 | 35 | (13 | ) | 22 | 30 | (11 | ) | 19 | ||||||||||||||||||
Total defined benefit plans | (178 | ) | 74 | (104 | ) | (730 | ) | 274 | (456 | ) | 30 | (11 | ) | 19 | ||||||||||||||||
Unrealized gain (loss) on cash flow hedges: | ||||||||||||||||||||||||||||||
Unrealized hedge gain (loss) arising during period | 2 | 5 | 7 | 5 | (4 | ) | 1 | 6 | — | 6 | ||||||||||||||||||||
Reclassification adjustment (a) | (3 | ) | (5 | ) | (8 | ) | (7 | ) | 4 | (3 | ) | (4 | ) | (1 | ) | (5 | ) | |||||||||||||
Net unrealized gain (loss) on cash flow hedges | (1 | ) | — | (1 | ) | (2 | ) | — | (2 | ) | 2 | (1 | ) | 1 | ||||||||||||||||
Total other comprehensive income (loss) | $ | (616 | ) | $ | (83 | ) | $ | (699 | ) | $ | (983 | ) | $ | 213 | $ | (770 | ) | $ | 284 | $ | (78 | ) | $ | 206 | ||||||
(a) | The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the Consolidated Income Statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the Consolidated Income Statement. See Note 16 of the Notes to Consolidated Financial Statements for the location of the reclassification adjustment related to cash flow hedges on the Consolidated Income Statement. | |||||||||||||||||||||||||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the financial instruments carried at fair value at March 31, 2015 and Dec. 31, 2014, by caption on the consolidated balance sheet and by valuation hierarchy (as described above). We have included credit ratings information in certain of the tables because the information indicates the degree of credit risk to which we are exposed, and significant changes in ratings classifications could result in increased risk for us. There were no material transfers between Level 1 and Level 2 during the first quarter of 2015. | ||||||||||||||||||||||||||
Assets measured at fair value on a recurring basis at March 31, 2015 | |||||||||||||||||||||||||||
(dollar amounts in millions) | Level 1 | Level 2 | Level 3 | Netting (a) | Total carrying | ||||||||||||||||||||||
value | |||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||
U.S. Treasury | $ | 18,586 | $ | — | $ | — | $ | — | $ | 18,586 | |||||||||||||||||
U.S. Government agencies | — | 385 | — | — | 385 | ||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 40 | 15,203 | — | — | 15,243 | ||||||||||||||||||||||
State and political subdivisions (b) | — | 5,128 | 11 | — | 5,139 | ||||||||||||||||||||||
Agency RMBS | — | 25,183 | — | — | 25,183 | ||||||||||||||||||||||
Non-agency RMBS | — | 920 | — | — | 920 | ||||||||||||||||||||||
Other RMBS | — | 1,386 | — | — | 1,386 | ||||||||||||||||||||||
Commercial MBS | — | 1,851 | — | — | 1,851 | ||||||||||||||||||||||
Agency commercial MBS | — | 3,785 | — | — | 3,785 | ||||||||||||||||||||||
Asset-backed CLOs | — | 2,258 | — | — | 2,258 | ||||||||||||||||||||||
Other asset-backed securities | — | 3,400 | — | — | 3,400 | ||||||||||||||||||||||
Equity securities | 92 | — | — | — | 92 | ||||||||||||||||||||||
Money market funds (b) | 730 | — | — | — | 730 | ||||||||||||||||||||||
Corporate bonds | — | 1,745 | — | — | 1,745 | ||||||||||||||||||||||
Other debt securities | — | 2,068 | — | — | 2,068 | ||||||||||||||||||||||
Foreign covered bonds | 2,338 | 470 | — | — | 2,808 | ||||||||||||||||||||||
Non-agency RMBS (c) | — | 2,138 | — | — | 2,138 | ||||||||||||||||||||||
Total available-for-sale securities | 21,786 | 65,920 | 11 | — | 87,717 | ||||||||||||||||||||||
Trading assets: | |||||||||||||||||||||||||||
Debt and equity instruments (b) | 1,579 | 2,288 | — | — | 3,867 | ||||||||||||||||||||||
Derivative assets not designated as hedging: | |||||||||||||||||||||||||||
Interest rate | 27 | 17,024 | 3 | (13,365 | ) | 3,689 | |||||||||||||||||||||
Foreign exchange | — | 6,199 | — | (4,391 | ) | 1,808 | |||||||||||||||||||||
Equity | 64 | 192 | 3 | (118 | ) | 141 | |||||||||||||||||||||
Total derivative assets not designated as hedging | 91 | 23,415 | 6 | (17,874 | ) | 5,638 | |||||||||||||||||||||
Total trading assets | 1,670 | 25,703 | 6 | (17,874 | ) | 9,505 | |||||||||||||||||||||
Loans | — | 140 | — | — | 140 | ||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||
Derivative assets designated as hedging: | |||||||||||||||||||||||||||
Interest rate | — | 574 | — | — | 574 | ||||||||||||||||||||||
Foreign exchange | — | 464 | — | — | 464 | ||||||||||||||||||||||
Total derivative assets designated as hedging | — | 1,038 | — | — | 1,038 | ||||||||||||||||||||||
Other assets (d) | 234 | 897 | 54 | — | 1,185 | ||||||||||||||||||||||
Total other assets | 234 | 1,935 | 54 | — | 2,223 | ||||||||||||||||||||||
Subtotal assets of operations at fair value | 23,690 | 93,698 | 71 | (17,874 | ) | 99,585 | |||||||||||||||||||||
Percentage of assets prior to netting | 20 | % | 80 | % | — | % | |||||||||||||||||||||
Assets of consolidated investment management funds: | |||||||||||||||||||||||||||
Trading assets | 170 | 7,682 | — | — | 7,852 | ||||||||||||||||||||||
Other assets | 462 | 111 | — | — | 573 | ||||||||||||||||||||||
Total assets of consolidated investment management funds | 632 | 7,793 | — | — | 8,425 | ||||||||||||||||||||||
Total assets | $ | 24,322 | $ | 101,491 | $ | 71 | $ | (17,874 | ) | $ | 108,010 | ||||||||||||||||
Percentage of assets prior to netting | 19 | % | 81 | % | — | % | |||||||||||||||||||||
Liabilities measured at fair value on a recurring basis at March 31, 2015 | |||||||||||||||||||||||||||
(dollar amounts in millions) | Level 1 | Level 2 | Level 3 | Netting (a) | Total carrying | ||||||||||||||||||||||
value | |||||||||||||||||||||||||||
Trading liabilities: | |||||||||||||||||||||||||||
Debt and equity instruments | $ | 412 | $ | 235 | $ | — | $ | — | $ | 647 | |||||||||||||||||
Derivative liabilities not designated as hedging: | |||||||||||||||||||||||||||
Interest rate | 8 | 17,225 | 3 | (13,836 | ) | 3,400 | |||||||||||||||||||||
Foreign exchange | — | 6,073 | — | (3,044 | ) | 3,029 | |||||||||||||||||||||
Equity and other contracts | 28 | 354 | 3 | (119 | ) | 266 | |||||||||||||||||||||
Total derivative liabilities not designated as hedging | 36 | 23,652 | 6 | (16,999 | ) | 6,695 | |||||||||||||||||||||
Total trading liabilities | 448 | 23,887 | 6 | (16,999 | ) | 7,342 | |||||||||||||||||||||
Long-term debt (b) | — | 355 | — | — | 355 | ||||||||||||||||||||||
Other liabilities - derivative liabilities designated as hedging: | |||||||||||||||||||||||||||
Interest rate | — | 553 | — | — | 553 | ||||||||||||||||||||||
Foreign exchange | — | 59 | — | — | 59 | ||||||||||||||||||||||
Total other liabilities - derivative liabilities designated as hedging | — | 612 | — | — | 612 | ||||||||||||||||||||||
Subtotal liabilities of operations at fair value | 448 | 24,854 | 6 | (16,999 | ) | 8,309 | |||||||||||||||||||||
Percentage of liabilities prior to netting | 2 | % | 98 | % | — | % | |||||||||||||||||||||
Liabilities of consolidated investment management funds: | |||||||||||||||||||||||||||
Trading liabilities | — | 6,584 | — | — | 6,584 | ||||||||||||||||||||||
Other liabilities | 27 | 9 | — | — | 36 | ||||||||||||||||||||||
Total liabilities of consolidated investment management funds | 27 | 6,593 | — | — | 6,620 | ||||||||||||||||||||||
Total liabilities | $ | 475 | $ | 31,447 | $ | 6 | $ | (16,999 | ) | $ | 14,929 | ||||||||||||||||
Percentage of liabilities prior to netting | 1 | % | 99 | % | — | % | |||||||||||||||||||||
(a) | ASC 815 permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities, and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product. | ||||||||||||||||||||||||||
(b) | Includes certain interests in securitizations. | ||||||||||||||||||||||||||
(c) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | ||||||||||||||||||||||||||
(d) | Includes private equity investments and seed capital. | ||||||||||||||||||||||||||
Assets measured at fair value on a recurring basis at Dec. 31, 2014 | |||||||||||||||||||||||||||
(dollar amounts in millions) | Level 1 | Level 2 | Level 3 | Netting (a) | Total carrying | ||||||||||||||||||||||
value | |||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||
U.S. Treasury | $ | 19,997 | $ | — | $ | — | $ | — | $ | 19,997 | |||||||||||||||||
U.S. Government agencies | — | 343 | — | — | 343 | ||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 40 | 17,244 | — | — | 17,284 | ||||||||||||||||||||||
State and political subdivisions (b) | — | 5,236 | 11 | — | 5,247 | ||||||||||||||||||||||
Agency RMBS | — | 32,600 | — | — | 32,600 | ||||||||||||||||||||||
Non-agency RMBS | — | 953 | — | — | 953 | ||||||||||||||||||||||
Other RMBS | — | 1,551 | — | — | 1,551 | ||||||||||||||||||||||
Commercial MBS | — | 1,959 | — | — | 1,959 | ||||||||||||||||||||||
Agency commercial MBS | — | 3,132 | — | — | 3,132 | ||||||||||||||||||||||
Asset-backed CLOs | — | 2,130 | — | — | 2,130 | ||||||||||||||||||||||
Other asset-backed securities | — | 3,240 | — | — | 3,240 | ||||||||||||||||||||||
Equity securities | 95 | — | — | — | 95 | ||||||||||||||||||||||
Money market funds (b) | 763 | — | — | — | 763 | ||||||||||||||||||||||
Corporate bonds | — | 1,785 | — | — | 1,785 | ||||||||||||||||||||||
Other debt securities | — | 2,169 | — | — | 2,169 | ||||||||||||||||||||||
Foreign covered bonds | 2,250 | 618 | — | — | 2,868 | ||||||||||||||||||||||
Non-agency RMBS (c) | — | 2,214 | — | — | 2,214 | ||||||||||||||||||||||
Total available-for-sale securities | 23,145 | 75,174 | 11 | — | 98,330 | ||||||||||||||||||||||
Trading assets: | |||||||||||||||||||||||||||
Debt and equity instruments (b) | 2,204 | 2,217 | — | — | 4,421 | ||||||||||||||||||||||
Derivative assets not designated as hedging: | |||||||||||||||||||||||||||
Interest rate | 7 | 17,137 | 6 | (13,942 | ) | 3,208 | |||||||||||||||||||||
Foreign exchange | — | 6,280 | — | (4,246 | ) | 2,034 | |||||||||||||||||||||
Equity | 96 | 278 | 3 | (159 | ) | 218 | |||||||||||||||||||||
Total derivative assets not designated as hedging | 103 | 23,695 | 9 | (18,347 | ) | 5,460 | |||||||||||||||||||||
Total trading assets | 2,307 | 25,912 | 9 | (18,347 | ) | 9,881 | |||||||||||||||||||||
Loans | — | 21 | — | — | 21 | ||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||
Derivative assets designated as hedging: | |||||||||||||||||||||||||||
Interest rate | — | 477 | — | — | 477 | ||||||||||||||||||||||
Foreign exchange | — | 374 | — | — | 374 | ||||||||||||||||||||||
Total derivative assets designated as hedging | — | 851 | — | — | 851 | ||||||||||||||||||||||
Other assets (d) | 250 | 745 | 70 | — | 1,065 | ||||||||||||||||||||||
Total other assets | 250 | 1,596 | 70 | — | 1,916 | ||||||||||||||||||||||
Subtotal assets of operations at fair value | 25,702 | 102,703 | 90 | (18,347 | ) | 110,148 | |||||||||||||||||||||
Percentage of assets prior to netting | 20 | % | 80 | % | — | % | |||||||||||||||||||||
Assets of consolidated investment management funds: | |||||||||||||||||||||||||||
Trading assets | 100 | 8,578 | — | — | 8,678 | ||||||||||||||||||||||
Other assets | 457 | 147 | — | — | 604 | ||||||||||||||||||||||
Total assets of consolidated investment management funds | 557 | 8,725 | — | — | 9,282 | ||||||||||||||||||||||
Total assets | $ | 26,259 | $ | 111,428 | $ | 90 | $ | (18,347 | ) | $ | 119,430 | ||||||||||||||||
Percentage of assets prior to netting | 19 | % | 81 | % | — | % | |||||||||||||||||||||
Liabilities measured at fair value on a recurring basis at Dec. 31, 2014 | |||||||||||||||||||||||||||
(dollar amounts in millions) | Level 1 | Level 2 | Level 3 | Netting (a) | Total carrying | ||||||||||||||||||||||
value | |||||||||||||||||||||||||||
Trading liabilities: | |||||||||||||||||||||||||||
Debt and equity instruments | $ | 367 | $ | 294 | $ | — | $ | — | $ | 661 | |||||||||||||||||
Derivative liabilities not designated as hedging: | |||||||||||||||||||||||||||
Interest rate | 3 | 17,645 | 6 | (14,467 | ) | 3,187 | |||||||||||||||||||||
Foreign exchange | — | 6,367 | — | (3,149 | ) | 3,218 | |||||||||||||||||||||
Equity and other contracts | 47 | 499 | 3 | (181 | ) | 368 | |||||||||||||||||||||
Total derivative liabilities not designated as hedging | 50 | 24,511 | 9 | (17,797 | ) | 6,773 | |||||||||||||||||||||
Total trading liabilities | 417 | 24,805 | 9 | (17,797 | ) | 7,434 | |||||||||||||||||||||
Long-term debt (b) | — | 347 | — | — | 347 | ||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||
Derivative liabilities designated as hedging: | |||||||||||||||||||||||||||
Interest rate | — | 385 | — | — | 385 | ||||||||||||||||||||||
Foreign exchange | — | 62 | — | — | 62 | ||||||||||||||||||||||
Total derivative liabilities designated as hedging | — | 447 | — | — | 447 | ||||||||||||||||||||||
Other liabilities | 4 | — | — | — | 4 | ||||||||||||||||||||||
Total other liabilities | 4 | 447 | — | — | 451 | ||||||||||||||||||||||
Subtotal liabilities of operations at fair value | 421 | 25,599 | 9 | (17,797 | ) | 8,232 | |||||||||||||||||||||
Percentage of liabilities prior to netting | 2 | % | 98 | % | — | % | |||||||||||||||||||||
Liabilities of consolidated investment management funds: | |||||||||||||||||||||||||||
Trading liabilities | — | 7,660 | — | — | 7,660 | ||||||||||||||||||||||
Other liabilities | 1 | 8 | — | — | 9 | ||||||||||||||||||||||
Total liabilities of consolidated investment management funds | 1 | 7,668 | — | — | 7,669 | ||||||||||||||||||||||
Total liabilities | $ | 422 | $ | 33,267 | $ | 9 | $ | (17,797 | ) | $ | 15,901 | ||||||||||||||||
Percentage of liabilities prior to netting | 1 | % | 99 | % | — | % | |||||||||||||||||||||
(a) | ASC 815 permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities, and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product. | ||||||||||||||||||||||||||
(b) | Includes certain interests in securitizations. | ||||||||||||||||||||||||||
(c) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | ||||||||||||||||||||||||||
(d) | Includes private equity investments and seed capital. | ||||||||||||||||||||||||||
Details Of Certain Items Measured At Fair Value On Recurring Basis Table | |||||||||||||||||||||||||||
Details of certain items measured at fair value | 31-Mar-15 | Dec. 31, 2014 | |||||||||||||||||||||||||
on a recurring basis | Total | Ratings | Total | Ratings | |||||||||||||||||||||||
carrying | AAA/ | A+/ | BBB+/ | BB+ and | carrying value (a) | AAA/ | A+/ | BBB+/ | BB+ and | ||||||||||||||||||
(dollar amounts in millions) | value (a) | AA- | A- | BBB- | lower | AA- | A- | BBB- | lower | ||||||||||||||||||
Non-agency RMBS, originated in: | |||||||||||||||||||||||||||
2007 | $ | 76 | — | % | — | % | — | % | 100 | % | $ | 78 | — | % | — | % | — | % | 100 | % | |||||||
2006 | 134 | — | — | — | 100 | 138 | — | — | — | 100 | |||||||||||||||||
2005 | 276 | — | 21 | 18 | 61 | 284 | — | 21 | 19 | 60 | |||||||||||||||||
2004 and earlier | 434 | 3 | 5 | 27 | 65 | 453 | 3 | 5 | 27 | 65 | |||||||||||||||||
Total non-agency RMBS | $ | 920 | 1 | % | 8 | % | 19 | % | 72 | % | $ | 953 | 1 | % | 9 | % | 19 | % | 71 | % | |||||||
Commercial MBS - Domestic, originated in: | |||||||||||||||||||||||||||
2009-2015 | $ | 686 | 84 | % | 16 | % | — | % | — | % | $ | 639 | 83 | % | 17 | % | — | % | — | % | |||||||
2008 | 19 | 100 | — | — | — | 19 | 100 | — | — | — | |||||||||||||||||
2007 | 349 | 65 | 21 | 14 | — | 353 | 65 | 21 | 14 | — | |||||||||||||||||
2006 | 545 | 82 | 18 | — | — | 599 | 83 | 17 | — | — | |||||||||||||||||
2005 | 179 | 100 | — | — | — | 271 | 100 | — | — | — | |||||||||||||||||
2004 and earlier | 6 | 100 | — | — | — | 6 | 100 | — | — | — | |||||||||||||||||
Total commercial MBS - Domestic | $ | 1,784 | 81 | % | 16 | % | 3 | % | — | % | $ | 1,887 | 82 | % | 15 | % | 3 | % | — | % | |||||||
Foreign covered bonds: | |||||||||||||||||||||||||||
Canada | $ | 1,394 | 100 | % | — | % | — | % | — | % | $ | 1,266 | 100 | % | — | % | — | % | — | % | |||||||
United Kingdom | 604 | 100 | — | — | — | 690 | 100 | — | — | — | |||||||||||||||||
Netherlands | 215 | 100 | — | — | — | 244 | 100 | — | — | — | |||||||||||||||||
Other | 595 | 100 | — | — | — | 668 | 100 | — | — | — | |||||||||||||||||
Total foreign covered bonds | $ | 2,808 | 100 | % | — | % | — | % | — | % | $ | 2,868 | 100 | % | — | % | — | % | — | % | |||||||
European floating rate notes - available-for-sale: | |||||||||||||||||||||||||||
United Kingdom | $ | 1,052 | 83 | % | 17 | % | — | % | — | % | $ | 1,172 | 83 | % | 17 | % | — | % | — | % | |||||||
Netherlands | 250 | 100 | — | — | — | 296 | 100 | — | — | — | |||||||||||||||||
Ireland | 129 | — | — | — | 100 | 144 | — | — | — | 100 | |||||||||||||||||
Other | 21 | 100 | — | — | — | 25 | 99 | 1 | — | — | |||||||||||||||||
Total European floating rate notes - available-for-sale | $ | 1,452 | 79 | % | 12 | % | — | % | 9 | % | $ | 1,637 | 79 | % | 12 | % | — | % | 9 | % | |||||||
Sovereign debt/sovereign guaranteed: | |||||||||||||||||||||||||||
France | $ | 4,252 | 100 | % | — | % | — | % | — | % | $ | 3,550 | 100 | % | — | % | — | % | — | % | |||||||
United Kingdom | 2,858 | 100 | — | — | — | 5,076 | 100 | — | — | — | |||||||||||||||||
Spain | 1,817 | — | — | 100 | — | 1,978 | — | — | 100 | — | |||||||||||||||||
Germany | 1,548 | 100 | — | — | — | 1,522 | 100 | — | — | — | |||||||||||||||||
Italy | 1,252 | — | — | 100 | — | 1,427 | — | — | 100 | — | |||||||||||||||||
Netherlands | 1,237 | 100 | — | — | — | 1,800 | 100 | — | — | — | |||||||||||||||||
Belguim | 1,058 | 100 | — | — | — | 829 | 100 | — | — | — | |||||||||||||||||
Ireland | 802 | — | 17 | 83 | — | 672 | — | — | 100 | — | |||||||||||||||||
Other | 419 | 83 | — | 17 | — | 430 | 81 | — | 19 | — | |||||||||||||||||
Total sovereign debt/sovereign guaranteed | $ | 15,243 | 74 | % | 1 | % | 25 | % | — | % | $ | 17,284 | 76 | % | — | % | 24 | % | — | % | |||||||
Non-agency RMBS (b), originated in: | |||||||||||||||||||||||||||
2007 | $ | 599 | — | % | — | % | — | % | 100 | % | $ | 620 | — | % | — | % | — | % | 100 | % | |||||||
2006 | 627 | — | — | 1 | 99 | 653 | — | — | 1 | 99 | |||||||||||||||||
2005 | 706 | — | 3 | 1 | 96 | 727 | — | 3 | 1 | 96 | |||||||||||||||||
2004 and earlier | 206 | — | 4 | 7 | 89 | 214 | — | 4 | 7 | 89 | |||||||||||||||||
Total non-agency RMBS (b) | $ | 2,138 | — | % | 1 | % | 1 | % | 98 | % | $ | 2,214 | — | % | 1 | % | 1 | % | 98 | % | |||||||
(a) | At March 31, 2015 and Dec. 31, 2014, foreign covered bonds and sovereign debt were included in Level 1 and Level 2 in the valuation hierarchy. All other assets in the table are Level 2 assets in the valuation hierarchy. | ||||||||||||||||||||||||||
(b) | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | ||||||||||||||||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation | The tables below include a roll forward of the balance sheet amounts for the quarters ended March 31, 2015 and 2014 (including the change in fair value), for financial instruments classified in Level 3 of the valuation hierarchy. | ||||||||||||||||||||||||||
Fair value measurements for assets using significant unobservable inputs for the three months ended March 31, 2015 | |||||||||||||||||||||||||||
Available-for-sale securities | Trading assets | Total assets | |||||||||||||||||||||||||
(in millions) | State and | Derivative | (a) | Other | |||||||||||||||||||||||
political | assets | assets | |||||||||||||||||||||||||
subdivisions | |||||||||||||||||||||||||||
Fair value at Dec. 31, 2014 | $ | 11 | $ | 9 | $ | 70 | $ | 90 | |||||||||||||||||||
Total gains or (losses) for the period: | |||||||||||||||||||||||||||
Included in earnings (or changes in net assets) | — | (b) | (1 | ) | (c) | (2 | ) | (d) | (3 | ) | |||||||||||||||||
Purchases, sales and settlements: | |||||||||||||||||||||||||||
Purchases | — | — | 7 | 7 | |||||||||||||||||||||||
Sales | — | — | (21 | ) | (21 | ) | |||||||||||||||||||||
Settlements | — | (2 | ) | — | (2 | ) | |||||||||||||||||||||
Fair value at March 31, 2015 | $ | 11 | $ | 6 | $ | 54 | $ | 71 | |||||||||||||||||||
Change in unrealized gains or (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period | $ | (1 | ) | $ | — | $ | (1 | ) | |||||||||||||||||||
(a) | Derivative assets are reported on a gross basis. | ||||||||||||||||||||||||||
(b) | Realized gains (losses) are reported in securities gains (losses). Unrealized gains (losses) are reported in accumulated other comprehensive income (loss) except for the credit portion of OTTI losses which are recorded in securities gains (losses). | ||||||||||||||||||||||||||
(c) | Reported in foreign exchange and other trading revenue. | ||||||||||||||||||||||||||
(d) | Reported in investment and other income. | ||||||||||||||||||||||||||
Fair value measurements for liabilities using significant unobservable inputs for the three months ended March 31, 2015 | |||||||||||||||||||||||||||
Trading liabilities | Total liabilities | ||||||||||||||||||||||||||
(in millions) | Derivative liabilities | (a) | |||||||||||||||||||||||||
Fair value at Dec. 31, 2014 | $ | 9 | $ | 9 | |||||||||||||||||||||||
Total (gains) or losses for the period: | |||||||||||||||||||||||||||
Included in earnings (or changes in net liabilities) | (1 | ) | (b) | (1 | ) | ||||||||||||||||||||||
Settlements | (2 | ) | (2 | ) | |||||||||||||||||||||||
Fair value at March 31, 2015 | $ | 6 | $ | 6 | |||||||||||||||||||||||
Change in unrealized (gains) or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period | $ | 1 | $ | 1 | |||||||||||||||||||||||
(a) | Derivative liabilities are reported on a gross basis. | ||||||||||||||||||||||||||
(b) | Reported in foreign exchange and other trading revenue. | ||||||||||||||||||||||||||
Fair value measurements for assets using significant unobservable inputs for the three months ended March 31, 2014 | |||||||||||||||||||||||||||
Available-for-sale securities | Trading assets | ||||||||||||||||||||||||||
(in millions) | State and political | Debt and equity | Derivative | (a) | Other | Total | |||||||||||||||||||||
subdivisions | instruments | assets | assets | assets | |||||||||||||||||||||||
Fair value at Dec. 31, 2013 | $ | 11 | $ | 1 | $ | 22 | $ | 105 | $ | 139 | |||||||||||||||||
Transfers out of Level 3 | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Total gains or (losses) for the period: | |||||||||||||||||||||||||||
Included in earnings (or changes in net assets) | — | (b) | — | (c) | (2 | ) | (c) | 2 | (d) | — | |||||||||||||||||
Purchases and sales: | |||||||||||||||||||||||||||
Purchases | — | — | — | 8 | 8 | ||||||||||||||||||||||
Sales | — | — | — | (5 | ) | (5 | ) | ||||||||||||||||||||
Fair value at March 31, 2014 | $ | 11 | $ | 1 | $ | 19 | $ | 110 | $ | 141 | |||||||||||||||||
Change in unrealized gains or (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period | $ | — | $ | (2 | ) | $ | — | $ | (2 | ) | |||||||||||||||||
(a) | Derivative assets are reported on a gross basis. | ||||||||||||||||||||||||||
(b) | Realized gains (losses) are reported in securities gains (losses). Unrealized gains (losses) are reported in accumulated other comprehensive income (loss) except for the credit portion of OTTI losses which are recorded in securities gains (losses). | ||||||||||||||||||||||||||
(c) | Reported in foreign exchange and other trading revenue. | ||||||||||||||||||||||||||
(d) | Reported in investment and other income. | ||||||||||||||||||||||||||
Fair value measurements for liabilities using significant unobservable inputs for the three months ended March 31, 2014 | |||||||||||||||||||||||||||
Trading liabilities | Total liabilities | ||||||||||||||||||||||||||
(in millions) | Derivative liabilities | (a) | |||||||||||||||||||||||||
Fair value at Dec. 31, 2013 | $ | 75 | $ | 75 | |||||||||||||||||||||||
Transfers out of Level 3 | (37 | ) | (37 | ) | |||||||||||||||||||||||
Total (gains) or losses for the period: | |||||||||||||||||||||||||||
Included in earnings (or changes in net liabilities) | 3 | (b) | 3 | ||||||||||||||||||||||||
Fair value at March 31, 2014 | $ | 41 | $ | 41 | |||||||||||||||||||||||
Change in unrealized (gains) or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period | $ | 3 | $ | 3 | |||||||||||||||||||||||
(a) | Derivative liabilities are reported on a gross basis. | ||||||||||||||||||||||||||
(b) | Reported in foreign exchange and other trading revenue. | ||||||||||||||||||||||||||
Assets Measured at Fair Value on Nonrecurring Basis | The following tables present the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy as of March 31, 2015 and Dec. 31, 2014, for which a nonrecurring change in fair value has been recorded during the quarters ended March 31, 2015 and Dec. 31, 2014. | ||||||||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis at March 31, 2015 | Total carrying | ||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | value | |||||||||||||||||||||||
Loans (a) | $ | — | $ | 108 | $ | 2 | $ | 110 | |||||||||||||||||||
Other assets (b) | — | 7 | — | 7 | |||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $ | — | $ | 115 | $ | 2 | $ | 117 | |||||||||||||||||||
Assets measured at fair value on a nonrecurring basis at Dec. 31, 2014 | Total carrying | ||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | value | |||||||||||||||||||||||
Loans (a) | $ | — | $ | 112 | $ | 2 | $ | 114 | |||||||||||||||||||
Other assets (b) | — | 6 | — | 6 | |||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $ | — | $ | 118 | $ | 2 | $ | 120 | |||||||||||||||||||
(a) | During the quarters ended March 31, 2015 and Dec. 31, 2014, the fair value of these loans increased less than $1 million and decreased $3 million, respectively, based on the fair value of the underlying collateral as allowed by ASC 310, Accounting by Creditors for Impairment of a loan, with an offset to the allowance for credit losses. | ||||||||||||||||||||||||||
(b) | Includes other assets received in satisfaction of debt and loans held for sale. Loans held for sale are carried on the balance sheet at the lower of cost or fair value. | ||||||||||||||||||||||||||
Fair Value Inputs, Assets, Quantitative Information | The following tables present the unobservable inputs used in the valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. | ||||||||||||||||||||||||||
Quantitative information about Level 3 fair value measurements of assets | |||||||||||||||||||||||||||
(dollars in millions) | Fair value at | Valuation techniques | Unobservable input | Range | |||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||
Measured on a recurring basis: | |||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||
State and political subdivisions | $ | 11 | Discounted cash flow | Expected credit loss | 1 | % | |||||||||||||||||||||
Trading assets - Derivative assets: | |||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||
Structured foreign exchange swaptions | 3 | Option pricing model (a) | Correlation risk | 0%-25% | |||||||||||||||||||||||
Long-term foreign exchange volatility | 13%-15% | ||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||
Equity options | 3 | Option pricing model (a) | Long-term equity volatility | 21%-22% | |||||||||||||||||||||||
Measured on a nonrecurring basis: | |||||||||||||||||||||||||||
Loans | 2 | Discounted cash flows | Timing of sale | 0-15 months | |||||||||||||||||||||||
Cap rate | 8 | % | |||||||||||||||||||||||||
Cost to complete/sell | 0%-260% | ||||||||||||||||||||||||||
Fair Value Inputs, Liabilities, Quantitative information | |||||||||||||||||||||||||||
Quantitative information about Level 3 fair value measurements of liabilities | |||||||||||||||||||||||||||
(dollars in millions) | Fair value at | Valuation techniques | Unobservable input | Range | |||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||
Measured on a recurring basis: | |||||||||||||||||||||||||||
Trading liabilities - Derivative liabilities: | |||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||
Structured foreign exchange swaptions | $ | 3 | Option pricing model (a) | Correlation risk | 0%-25% | ||||||||||||||||||||||
Long-term foreign exchange volatility | 13%-15% | ||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||
Equity options | 3 | Option pricing model (a) | Long-term equity volatility | 21%-22% | |||||||||||||||||||||||
(a) | The option pricing model uses market inputs such as foreign currency exchange rates, interest rates and volatility to calculate the fair value of the option. | ||||||||||||||||||||||||||
Fair Value by Balance Sheet Grouping | The following tables present the estimated fair value and the carrying amount of financial instruments not carried at fair value on the consolidated balance sheet at March 31, 2015 and Dec. 31, 2014, by caption on the consolidated balance sheet and by the valuation hierarchy (as described above). | ||||||||||||||||||||||||||
Summary of financial instruments | 31-Mar-15 | ||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Carrying | ||||||||||||||||||||||
estimated | amount | ||||||||||||||||||||||||||
fair value | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve and other central banks | $ | — | $ | 89,704 | $ | — | $ | 89,704 | $ | 89,704 | |||||||||||||||||
Interest-bearing deposits with banks | — | 18,947 | — | 18,947 | 18,937 | ||||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | — | 28,268 | — | 28,268 | 28,268 | ||||||||||||||||||||||
Securities held-to-maturity | 10,462 | 31,214 | — | 41,676 | 41,237 | ||||||||||||||||||||||
Loans | — | 60,088 | — | 60,088 | 59,906 | ||||||||||||||||||||||
Other financial assets | 7,167 | 1,073 | — | 8,240 | 8,240 | ||||||||||||||||||||||
Total | $ | 17,629 | $ | 229,294 | $ | — | $ | 246,923 | $ | 246,292 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | — | $ | 111,622 | $ | — | $ | 111,622 | $ | 111,622 | |||||||||||||||||
Interest-bearing deposits | — | 168,831 | — | 168,831 | 169,637 | ||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | — | 7,919 | — | 7,919 | 7,919 | ||||||||||||||||||||||
Payables to customers and broker-dealers | — | 21,959 | — | 21,959 | 21,959 | ||||||||||||||||||||||
Borrowings | — | 984 | — | 984 | 984 | ||||||||||||||||||||||
Long-term debt | — | 20,711 | — | 20,711 | 20,046 | ||||||||||||||||||||||
Total | $ | — | $ | 332,026 | $ | — | $ | 332,026 | $ | 332,167 | |||||||||||||||||
Summary of financial instruments | Dec. 31, 2014 | ||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total estimated | Carrying | ||||||||||||||||||||||
fair value | amount | ||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve and other central banks | $ | — | $ | 96,682 | $ | — | $ | 96,682 | $ | 96,682 | |||||||||||||||||
Interest-bearing deposits with banks | — | 19,505 | — | 19,505 | 19,495 | ||||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | — | 20,302 | — | 20,302 | 20,302 | ||||||||||||||||||||||
Securities held-to-maturity | 5,063 | 16,064 | — | 21,127 | 20,933 | ||||||||||||||||||||||
Loans | — | 56,840 | — | 56,840 | 56,749 | ||||||||||||||||||||||
Other financial assets | 6,970 | 1,121 | — | 8,091 | 8,091 | ||||||||||||||||||||||
Total | $ | 12,033 | $ | 210,514 | $ | — | $ | 222,547 | $ | 222,252 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | — | $ | 104,240 | $ | — | $ | 104,240 | $ | 104,240 | |||||||||||||||||
Interest-bearing deposits | — | 160,688 | — | 160,688 | 161,629 | ||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | — | 11,469 | — | 11,469 | 11,469 | ||||||||||||||||||||||
Payables to customers and broker-dealers | — | 21,181 | — | 21,181 | 21,181 | ||||||||||||||||||||||
Borrowings | — | 956 | — | 956 | 956 | ||||||||||||||||||||||
Long-term debt | — | 20,401 | — | 20,401 | 19,917 | ||||||||||||||||||||||
Total | $ | — | $ | 318,935 | $ | — | $ | 318,935 | $ | 319,392 | |||||||||||||||||
Summary Of Hedged Financial Instruments Disclosure | The table below summarizes the carrying amount of the hedged financial instruments, the notional amount of the hedge and the unrealized gain (loss) (estimated fair value) of the derivatives. | ||||||||||||||||||||||||||
Hedged financial instruments | Carrying amount | Notional amount of hedge | Unrealized | ||||||||||||||||||||||||
(in millions) | Gain | (Loss) | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||
Securities available-for-sale | $ | 7,233 | $ | 6,966 | $ | 4 | $ | (539 | ) | ||||||||||||||||||
Long-term debt | 16,623 | 16,100 | 568 | (14 | ) | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Securities available-for-sale | $ | 7,294 | $ | 7,045 | $ | 4 | $ | (370 | ) | ||||||||||||||||||
Long-term debt | 16,469 | 16,100 | 470 | (14 | ) | ||||||||||||||||||||||
Fair_Value_Option_Tables
Fair Value Option (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Fair Value Disclosures [Abstract] | ||||||||||
Assets and Liabilities, by Type, of Consolidated Investment Management Funds Recorded at Fair Value | The following table presents the assets and liabilities, by type, of consolidated investment management funds recorded at fair value. | |||||||||
Assets and liabilities of consolidated investment management funds, at fair value | ||||||||||
(in millions) | March 31, 2015 | Dec. 31, 2014 | ||||||||
Assets of consolidated investment management funds: | ||||||||||
Trading assets | $ | 7,852 | $ | 8,678 | ||||||
Other assets | 573 | 604 | ||||||||
Total assets of consolidated investment management funds | $ | 8,425 | $ | 9,282 | ||||||
Liabilities of consolidated investment management funds: | ||||||||||
Trading liabilities | $ | 6,584 | $ | 7,660 | ||||||
Other liabilities | 36 | 9 | ||||||||
Total liabilities of consolidated investment management funds | $ | 6,620 | $ | 7,669 | ||||||
Changes in Fair Value of the Loans and Long-Term Debt and the Location of the Changes | The following table presents the changes in fair value of the loans and long-term debt and the location of the changes in the consolidated income statement. | |||||||||
Impact of changes in fair value in the income statement (a) | ||||||||||
Quarter ended | ||||||||||
(in millions) | March 31, 2015 | Dec. 31, 2014 | March 31, 2014 | |||||||
Loans: | ||||||||||
Investment and other income | $ | 2 | $ | — | $ | — | ||||
Long-term debt: | ||||||||||
Foreign exchange and other trading revenue | $ | (8 | ) | $ | (10 | ) | $ | (8 | ) | |
(a) | The changes in fair value of the loans and long-term debt are approximately offset by economic hedges included in investment and other income and foreign exchange and other trading revenue. |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||
Ineffectiveness Related to Derivatives and Hedging Relationships Recorded in Income | Ineffectiveness related to derivatives and hedging relationships was recorded in income as follows: | |||||||||||||||||||||||||||||||||
Ineffectiveness | Three months ended | |||||||||||||||||||||||||||||||||
(in millions) | March 31, | Dec. 31, 2014 | March 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||
Fair value hedges of securities | $ | 1.4 | $ | (12.9 | ) | $ | (4.9 | ) | ||||||||||||||||||||||||||
Fair value hedges of deposits and long-term debt | (3.7 | ) | (2.6 | ) | (2.8 | ) | ||||||||||||||||||||||||||||
Cash flow hedges | — | — | 0.1 | |||||||||||||||||||||||||||||||
Other (a) | — | — | (0.1 | ) | ||||||||||||||||||||||||||||||
Total | $ | (2.3 | ) | $ | (15.5 | ) | $ | (7.7 | ) | |||||||||||||||||||||||||
(a) | Includes ineffectiveness recorded on foreign exchange hedges. | |||||||||||||||||||||||||||||||||
Impact of Derivative Instruments on Balance Sheet | The following table summarizes the notional amount and credit exposure of our total derivative portfolio at March 31, 2015 and Dec. 31, 2014. | |||||||||||||||||||||||||||||||||
Impact of derivative instruments on the balance sheet | Notional value | Asset derivatives | Liability derivatives | |||||||||||||||||||||||||||||||
fair value | fair value | |||||||||||||||||||||||||||||||||
(in millions) | 31-Mar-15 | Dec. 31, 2014 | 31-Mar-15 | Dec. 31, 2014 | 31-Mar-15 | Dec. 31, 2014 | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments (a): | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 23,066 | $ | 23,145 | $ | 574 | $ | 477 | $ | 553 | $ | 385 | ||||||||||||||||||||||
Foreign exchange contracts | 7,309 | 7,344 | 464 | 374 | 59 | 62 | ||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 1,038 | $ | 851 | $ | 612 | $ | 447 | ||||||||||||||||||||||||||
Derivatives not designated as hedging instruments (b): | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 689,734 | $ | 731,628 | $ | 17,054 | $ | 17,150 | $ | 17,236 | $ | 17,654 | ||||||||||||||||||||||
Foreign exchange contracts | 593,662 | 528,401 | 6,199 | 6,280 | 6,073 | 6,367 | ||||||||||||||||||||||||||||
Equity contracts | 6,820 | 10,842 | 259 | 377 | 385 | 549 | ||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 23,512 | $ | 23,807 | $ | 23,694 | $ | 24,570 | ||||||||||||||||||||||||||
Total derivatives fair value (c) | $ | 24,550 | $ | 24,658 | $ | 24,306 | $ | 25,017 | ||||||||||||||||||||||||||
Effect of master netting agreements (d) | (17,874 | ) | (18,347 | ) | (16,999 | ) | (17,797 | ) | ||||||||||||||||||||||||||
Fair value after effect of master netting agreements | $ | 6,676 | $ | 6,311 | $ | 7,307 | $ | 7,220 | ||||||||||||||||||||||||||
(a) | The fair value of asset derivatives and liability derivatives designated as hedging instruments is recorded as other assets and other liabilities, respectively, on the balance sheet. | |||||||||||||||||||||||||||||||||
(b) | The fair value of asset derivatives and liability derivatives not designated as hedging instruments is recorded as trading assets and trading liabilities, respectively, on the balance sheet. | |||||||||||||||||||||||||||||||||
(c) | Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815. | |||||||||||||||||||||||||||||||||
(d) | Effect of master netting agreements includes cash collateral received and paid of $1,591 million and $716 million, respectively, at March 31, 2015, and $1,589 million and $1,039 million, respectively, at Dec. 31, 2014. | |||||||||||||||||||||||||||||||||
Impact of Derivative Instruments on Income Statement | ||||||||||||||||||||||||||||||||||
Impact of derivative instruments on the income statement | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Derivatives in fair value hedging relationships | Location of gain or | Gain or (loss) recognized in income | Location of gain or(loss) recognized in income on hedged item | Gain or (loss) recognized | ||||||||||||||||||||||||||||||
(loss) recognized in income on derivatives | on derivatives | in hedged item | ||||||||||||||||||||||||||||||||
1Q15 | 4Q14 | 1Q14 | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||||||
Interest rate contracts | Net interest revenue | $ | (151 | ) | $ | (327 | ) | $ | (285 | ) | Net interest revenue | $ | 149 | $ | 312 | $ | 277 | |||||||||||||||||
Derivatives in cash flow hedging | Gain or (loss) recognized | Location of gain or | Gain or (loss) reclassified | Location of gain or | Gain or (loss) recognized in income on derivatives | |||||||||||||||||||||||||||||
relationships | in accumulated | (loss) reclassified | from accumulated | (loss) recognized in | (ineffectiveness portion and amount excluded from effectiveness testing) | |||||||||||||||||||||||||||||
OCI on derivatives(effective portion) | from accumulated | OCI into income | income on derivatives | |||||||||||||||||||||||||||||||
OCI into income | (effective portion) | (ineffective portion and | ||||||||||||||||||||||||||||||||
(effective portion) | amount excluded from | |||||||||||||||||||||||||||||||||
1Q15 | 4Q14 | 1Q14 | 1Q15 | 4Q14 | 1Q14 | effectiveness testing) | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||
FX contracts | $ | (1 | ) | $ | — | $ | (1 | ) | Net interest revenue | $ | (1 | ) | $ | — | $ | (1 | ) | Net interest revenue | $ | — | $ | — | $ | — | ||||||||||
FX contracts | — | (4 | ) | 3 | Other revenue | — | (5 | ) | — | Other revenue | — | — | 0.1 | |||||||||||||||||||||
FX contracts | 12 | 10 | 3 | Trading revenue | 12 | 10 | 3 | Trading revenue | — | — | — | |||||||||||||||||||||||
FX contracts | (9 | ) | (2 | ) | 1 | Salary expense | (8 | ) | 2 | 2 | Salary expense | — | — | — | ||||||||||||||||||||
Total | $ | 2 | $ | 4 | $ | 6 | $ | 3 | $ | 7 | $ | 4 | $ | — | $ | — | $ | 0.1 | ||||||||||||||||
Derivatives in net | Gain or (loss) recognized in accumulated OCI | Location of gain or | Gain or (loss) reclassified | Location of gain or | Gain or (loss) | |||||||||||||||||||||||||||||
investment hedging | on derivatives | (loss) reclassified | from accumulated | (loss) recognized in | recognized in income on | |||||||||||||||||||||||||||||
relationships | (effective portion) | from accumulated | OCI into income | income on derivative | derivatives | |||||||||||||||||||||||||||||
OCI into income | (effective portion) | (ineffective portion and | (ineffectiveness portion and amount excluded from | |||||||||||||||||||||||||||||||
(effective portion) | amount excluded from | effectiveness testing) | ||||||||||||||||||||||||||||||||
1Q15 | 4Q14 | 1Q14 | 1Q15 | 4Q14 | 1Q14 | effectiveness testing) | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||
FX contracts | $ | 368 | $ | (530 | ) | $ | (16 | ) | Net interest revenue | $ | — | $ | — | $ | — | Other revenue | $ | — | $ | — | $ | (0.1 | ) | |||||||||||
Revenue from Foreign Exchange and Other Trading | Revenue from foreign exchange and other trading included the following: | |||||||||||||||||||||||||||||||||
Foreign exchange and other trading revenue | ||||||||||||||||||||||||||||||||||
(in millions) | 1Q15 | 4Q14 | 1Q14 | |||||||||||||||||||||||||||||||
Foreign exchange | $ | 217 | $ | 165 | $ | 130 | ||||||||||||||||||||||||||||
Other trading revenue (loss): | ||||||||||||||||||||||||||||||||||
Fixed income | 11 | (18 | ) | 1 | ||||||||||||||||||||||||||||||
Equity/other | 1 | 4 | 5 | |||||||||||||||||||||||||||||||
Total other trading revenue (loss) | 12 | (14 | ) | 6 | ||||||||||||||||||||||||||||||
Total foreign exchange and other trading revenue | $ | 229 | $ | 151 | $ | 136 | ||||||||||||||||||||||||||||
Fair Value of Derivative Contracts Falling under Early Termination Provisions that were in Net Liability Position | The following table shows the fair value of contracts falling under early termination provisions that were in net liability positions as of March 31, 2015 for three key ratings triggers: | |||||||||||||||||||||||||||||||||
If The Bank of New York Mellon’s rating was changed to (Moody’s/S&P) | Potential close-out exposures (fair value) (a) | |||||||||||||||||||||||||||||||||
A3/A- | $ | 146 | million | |||||||||||||||||||||||||||||||
Baa2/BBB | $ | 1,338 | million | |||||||||||||||||||||||||||||||
Ba1/BB+ | $ | 3,014 | million | |||||||||||||||||||||||||||||||
(a) | The amounts represent potential total close-out values if The Bank of New York Mellon’s rating were to immediately drop to the indicated levels. | |||||||||||||||||||||||||||||||||
Offsetting Assets | ||||||||||||||||||||||||||||||||||
Offsetting of derivative assets and financial assets at March 31, 2015 | ||||||||||||||||||||||||||||||||||
Gross assets recognized | Gross amounts offset in the balance sheet | Net assets recognized on the balance sheet | Gross amounts not offset in the balance sheet | |||||||||||||||||||||||||||||||
(in millions) | (a) | Financial instruments | Cash collateral received | Net amount | ||||||||||||||||||||||||||||||
Derivatives subject to netting arrangements: | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 15,004 | $ | 13,365 | $ | 1,639 | $ | 399 | $ | — | $ | 1,240 | ||||||||||||||||||||||
Foreign exchange contracts | 5,245 | 4,391 | 854 | 90 | — | 764 | ||||||||||||||||||||||||||||
Equity contracts | 237 | 118 | 119 | — | — | 119 | ||||||||||||||||||||||||||||
Total derivatives subject to netting arrangements | 20,486 | 17,874 | 2,612 | 489 | — | 2,123 | ||||||||||||||||||||||||||||
Total derivatives not subject to netting arrangements | 4,064 | — | 4,064 | — | — | 4,064 | ||||||||||||||||||||||||||||
Total derivatives | 24,550 | 17,874 | 6,676 | 489 | — | 6,187 | ||||||||||||||||||||||||||||
Reverse repurchase agreements | 20,750 | 2,020 | (b) | 18,730 | 18,728 | — | 2 | |||||||||||||||||||||||||||
Securities borrowing | 9,252 | — | 9,252 | 8,952 | — | 300 | ||||||||||||||||||||||||||||
Total | $ | 54,552 | $ | 19,894 | $ | 34,658 | $ | 28,169 | $ | — | $ | 6,489 | ||||||||||||||||||||||
(a) | Includes the effect of netting agreements and net cash collateral received. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions. | |||||||||||||||||||||||||||||||||
(b) | Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. | |||||||||||||||||||||||||||||||||
Offsetting of derivative assets and financial assets at Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
Gross assets recognized | Gross amounts offset in the balance sheet | Net assets recognized | Gross amounts not offset in the balance sheet | |||||||||||||||||||||||||||||||
on the | ||||||||||||||||||||||||||||||||||
(in millions) | (a) | balance sheet | Financial instruments | Cash collateral received | Net amount | |||||||||||||||||||||||||||||
Derivatives subject to netting arrangements: | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 15,457 | $ | 13,942 | $ | 1,515 | $ | 408 | $ | — | $ | 1,107 | ||||||||||||||||||||||
Foreign exchange contracts | 5,291 | 4,246 | 1,045 | 176 | — | 869 | ||||||||||||||||||||||||||||
Equity contracts | 303 | 159 | 144 | 6 | — | 138 | ||||||||||||||||||||||||||||
Total derivatives subject to netting arrangements | 21,051 | 18,347 | 2,704 | 590 | — | 2,114 | ||||||||||||||||||||||||||||
Total derivatives not subject to netting arrangements | 3,607 | — | 3,607 | — | — | 3,607 | ||||||||||||||||||||||||||||
Total derivatives | 24,658 | 18,347 | 6,311 | 590 | — | 5,721 | ||||||||||||||||||||||||||||
Reverse repurchase agreements | 11,634 | 434 | (b) | 11,200 | 11,198 | — | 2 | |||||||||||||||||||||||||||
Securities borrowing | 9,033 | — | 9,033 | 8,733 | — | 300 | ||||||||||||||||||||||||||||
Total | $ | 45,325 | $ | 18,781 | $ | 26,544 | $ | 20,521 | $ | — | $ | 6,023 | ||||||||||||||||||||||
(a) | Includes the effect of netting agreements and net cash collateral received. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions. | |||||||||||||||||||||||||||||||||
(b) | Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. | |||||||||||||||||||||||||||||||||
Offsetting Liabilities | ||||||||||||||||||||||||||||||||||
Offsetting of derivative liabilities and financial liabilities at March 31, 2015 | ||||||||||||||||||||||||||||||||||
Gross liabilities recognized | Gross amounts offset in the balance sheet | Net liabilities recognized on the balance sheet | Gross amounts not offset in the balance sheet | |||||||||||||||||||||||||||||||
(in millions) | (a) | Financial instruments | Cash collateral pledged | Net amount | ||||||||||||||||||||||||||||||
Derivatives subject to netting arrangements: | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 16,238 | $ | 13,836 | $ | 2,402 | $ | 2,069 | $ | — | $ | 333 | ||||||||||||||||||||||
Foreign exchange contracts | 3,954 | 3,044 | 910 | 267 | — | 643 | ||||||||||||||||||||||||||||
Equity contracts | 335 | 119 | 216 | 191 | — | 25 | ||||||||||||||||||||||||||||
Total derivatives subject to netting arrangements | 20,527 | 16,999 | 3,528 | 2,527 | — | 1,001 | ||||||||||||||||||||||||||||
Total derivatives not subject to netting arrangements | 3,779 | — | 3,779 | — | — | 3,779 | ||||||||||||||||||||||||||||
Total derivatives | 24,306 | 16,999 | 7,307 | 2,527 | — | 4,780 | ||||||||||||||||||||||||||||
Repurchase agreements | 7,743 | 2,020 | (b) | 5,723 | 5,721 | — | 2 | |||||||||||||||||||||||||||
Securities lending | 2,142 | — | 2,142 | 2,061 | — | 81 | ||||||||||||||||||||||||||||
Total | $ | 34,191 | $ | 19,019 | $ | 15,172 | $ | 10,309 | $ | — | $ | 4,863 | ||||||||||||||||||||||
(a) | Includes the effect of netting agreements and net cash collateral paid. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions. | |||||||||||||||||||||||||||||||||
(b) | Offsetting of repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. | |||||||||||||||||||||||||||||||||
Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
Gross liabilities recognized | Gross amounts offset in the balance sheet | Net liabilities recognized | Gross amounts not offset in the balance sheet | |||||||||||||||||||||||||||||||
on the | ||||||||||||||||||||||||||||||||||
(in millions) | (a) | balance sheet | Financial instruments | Cash collateral pledged | Net amount | |||||||||||||||||||||||||||||
Derivatives subject to netting arrangements: | ||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 16,884 | $ | 14,467 | $ | 2,417 | $ | 1,815 | $ | — | $ | 602 | ||||||||||||||||||||||
Foreign exchange contracts | 4,241 | 3,149 | 1,092 | 399 | — | 693 | ||||||||||||||||||||||||||||
Equity contracts | 481 | 181 | 300 | 250 | — | 50 | ||||||||||||||||||||||||||||
Total derivatives subject to netting arrangements | 21,606 | 17,797 | 3,809 | 2,464 | — | 1,345 | ||||||||||||||||||||||||||||
Total derivatives not subject to netting arrangements | 3,411 | — | 3,411 | — | — | 3,411 | ||||||||||||||||||||||||||||
Total derivatives | 25,017 | 17,797 | 7,220 | 2,464 | — | 4,756 | ||||||||||||||||||||||||||||
Repurchase agreements | 9,160 | 434 | (b) | 8,726 | 8,722 | — | 4 | |||||||||||||||||||||||||||
Securities lending | 2,571 | — | 2,571 | 2,494 | — | 77 | ||||||||||||||||||||||||||||
Total | $ | 36,748 | $ | 18,231 | $ | 18,517 | $ | 13,680 | $ | — | $ | 4,837 | ||||||||||||||||||||||
(a) | Includes the effect of netting agreements and net cash collateral paid. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions. | |||||||||||||||||||||||||||||||||
(b) | Offsetting of repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. |
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
Significant Industry Concentrations Related to Credit Exposure | Significant industry concentrations related to credit exposure at March 31, 2015 are disclosed in the financial institutions portfolio exposure table and the commercial portfolio exposure table below. | |||||||||
Financial institutions | 31-Mar-15 | |||||||||
portfolio exposure | ||||||||||
(in billions) | Loans | Unfunded | Total | |||||||
commitments | exposure | |||||||||
Banks | $ | 9.1 | $ | 1.7 | $ | 10.8 | ||||
Asset managers | 1.7 | 5.1 | 6.8 | |||||||
Securities industry | 3.3 | 1.1 | 4.4 | |||||||
Insurance | 0.1 | 3.9 | 4 | |||||||
Government | 0.1 | 3 | 3.1 | |||||||
Other | 0.4 | 1.2 | 1.6 | |||||||
Total | $ | 14.7 | $ | 16 | $ | 30.7 | ||||
Commercial portfolio | 31-Mar-15 | |||||||||
exposure | ||||||||||
(in billions) | Loans | Unfunded | Total | |||||||
commitments | exposure | |||||||||
Services and other | $ | 0.8 | $ | 6 | $ | 6.8 | ||||
Manufacturing | 0.4 | 5.7 | 6.1 | |||||||
Energy and utilities | 0.5 | 5.5 | 6 | |||||||
Media and telecom | 0.3 | 1.5 | 1.8 | |||||||
Total | $ | 2 | $ | 18.7 | $ | 20.7 | ||||
Summary of Off-Balance Sheet Credit Risks, Net of Participations | The following table presents a summary of our off-balance sheet credit risks, net of participations. | |||||||||
Off-balance sheet credit risks | March 31, | Dec. 31, | ||||||||
(in millions) | 2015 | 2014 | ||||||||
Lending commitments | $ | 34,166 | $ | 33,273 | ||||||
Standby letters of credit (a) | 5,600 | 5,767 | ||||||||
Commercial letters of credit | 264 | 255 | ||||||||
Securities lending indemnifications (b) | 310,273 | 304,386 | ||||||||
(a) | Net of participations totaling $961 million at March 31, 2015 and $894 million at Dec. 31, 2014. | |||||||||
(b) | Excludes the indemnification for securities for which BNY Mellon acts as an agent on behalf of CIBC Mellon clients, which totaled $68 billion at March 31, 2015 and $64 billion at Dec. 31, 2014. | |||||||||
Standby Letters of Credits by Investment Grade | The table below shows SBLCs by investment grade: | |||||||||
Standby letters of credit | March 31, | Dec. 31, | ||||||||
2015 | 2014 | |||||||||
Investment grade | 86 | % | 88 | % | ||||||
Non-investment grade | 14 | % | 12 | % |
Lines_of_Businesses_Tables
Lines of Businesses (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Contribution of Segments to Overall Profitability | The following consolidating schedules show the contribution of our businesses to our overall profitability. | ||||||||||||||||
For the quarter ended March 31, 2015 | Investment | Investment | Other | Consolidated | |||||||||||||
(dollar amounts in millions) | Management | Services | |||||||||||||||
Fee and other revenue | $ | 936 | (a) | $ | 1,993 | $ | 104 | $ | 3,033 | (a) | |||||||
Net interest revenue | 74 | 600 | 54 | 728 | |||||||||||||
Total revenue | 1,010 | (a) | 2,593 | 158 | 3,761 | (a) | |||||||||||
Provision for credit losses | — | — | 2 | 2 | |||||||||||||
Noninterest expense | 746 | 1,838 | 116 | 2,700 | |||||||||||||
Income before taxes | $ | 264 | (a) | $ | 755 | $ | 40 | $ | 1,059 | (a) | |||||||
Pre-tax operating margin (b) | 26 | % | 29 | % | N/M | 28 | % | ||||||||||
Average assets | $ | 37,496 | $ | 284,978 | $ | 52,416 | $ | 374,890 | |||||||||
(a) | Both total fee and other revenue and total revenue include the net income from consolidated investment management funds of $31 million, representing $121 million of income and noncontrolling interests of $90 million. Income before taxes is net of noncontrolling interests of $90 million. | ||||||||||||||||
(b) | Income before taxes divided by total revenue. | ||||||||||||||||
N/M - Not meaningful. | |||||||||||||||||
For the quarter ended Dec. 31, 2014 | Investment | Investment | Other | Consolidated | |||||||||||||
(dollar amounts in millions) | Management | Services | |||||||||||||||
Fee and other revenue | $ | 929 | (a) | $ | 1,907 | $ | 117 | $ | 2,953 | (a) | |||||||
Net interest revenue | 69 | 574 | 69 | 712 | |||||||||||||
Total revenue | 998 | (a) | 2,481 | 186 | 3,665 | (a) | |||||||||||
Provision for credit losses | — | — | 1 | 1 | |||||||||||||
Noninterest expense | 759 | 2,555 | 210 | 3,524 | |||||||||||||
Income (loss) before taxes | $ | 239 | (a) | $ | (74 | ) | $ | (25 | ) | $ | 140 | (a) | |||||
Pre-tax operating margin (b) | 24 | % | (3 | )% | N/M | 4 | % | ||||||||||
Average assets | $ | 37,286 | $ | 276,586 | $ | 71,360 | $ | 385,232 | |||||||||
(a) | Both total fee and other revenue and total revenue include the net income from consolidated investment management funds of $18 million, representing $42 million of income and noncontrolling interests of $24 million. Income before taxes is net of noncontrolling interests of $24 million. | ||||||||||||||||
(b) | Income before taxes divided by total revenue. | ||||||||||||||||
N/M - Not meaningful. | |||||||||||||||||
For the quarter ended March 31, 2014 | Investment | Investment | Other | Consolidated | |||||||||||||
(dollar amounts in millions) | Management | Services | |||||||||||||||
Fee and other revenue | $ | 900 | (a) | $ | 1,887 | $ | 112 | $ | 2,899 | (a) | |||||||
Net interest revenue | 70 | 590 | 68 | 728 | |||||||||||||
Total revenue | 970 | (a) | 2,477 | 180 | 3,627 | (a) | |||||||||||
Provision for credit losses | — | — | (18 | ) | (18 | ) | |||||||||||
Noninterest expense | 724 | 1,822 | 193 | 2,739 | |||||||||||||
Income before taxes | $ | 246 | (a) | $ | 655 | $ | 5 | $ | 906 | (a) | |||||||
Pre-tax operating margin (b) | 25 | % | 26 | % | N/M | 25 | % | ||||||||||
Average assets | $ | 39,463 | $ | 258,470 | $ | 57,059 | $ | 354,992 | |||||||||
(a) | Both total fee and other revenue and total revenue include the net income from consolidated investment management funds of $16 million, representing $36 million of income and noncontrolling interests of $20 million. Income before taxes is net of noncontrolling interests of $20 million. | ||||||||||||||||
(b) | Income before taxes divided by total revenue. |
Supplemental_information_to_th1
Supplemental information to the Consolidated Statement of Cash Flows (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||
Noncash Investing and Financing Transactions that are Not Reflected in Consolidated Statement of Cash Flows | Noncash investing and financing transactions that, appropriately, are not reflected in the Consolidated Statement of Cash Flows are listed below. | ||||||||
Noncash investing and financing transactions | Three months ended March 31, | ||||||||
(in millions) | 2015 | 2014 | |||||||
Transfers from loans to other assets for other real estate owned (“OREO”) | $ | 2 | $ | 1 | |||||
Change in assets of consolidated VIEs | 857 | 179 | |||||||
Change in liabilities of consolidated VIEs | 1,049 | 27 | |||||||
Change in noncontrolling interests of consolidated VIEs | 304 | 12 | |||||||
Securities not settled | 1,177 | 1,167 | |||||||
Available-for-sale securities transferred to held-to-maturity | 11,602 | — | |||||||
Acquisitions_and_dispositions_
Acquisitions and dispositions- Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |||||
Mar. 31, 2015 | Apr. 23, 2014 | Jan. 02, 2015 | 1-May-14 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Acquisitions | |||||||
Contingent payments | $0 | ||||||
Potential obligation to pay additional consideration, upper limit | 4,000,000 | ||||||
Contingent consideration arrangement time period of measurement | 1 year | ||||||
Goodwill | 17,663,000,000 | 17,869,000,000 | 18,100,000,000 | 18,073,000,000 | |||
Mexico Corporate Trust | |||||||
Dispositions | |||||||
Dispositions, net of cash | 65,000,000 | ||||||
After-tax gain on sale | 4,000,000 | ||||||
Goodwill written off related to sale of business unit | 8,000,000 | ||||||
Indefinite-lived intangible assets, written off related to sale of business unit | 1,000,000 | ||||||
Cutwater Asset Management | |||||||
Acquisitions | |||||||
business acquisition, assets under management acquired | 23,000,000,000 | ||||||
HedgeMark International, LLC | |||||||
Acquisitions | |||||||
Payments to acquire business | 26,000,000 | ||||||
Ownership percentage acquired (percent) | 65.00% | ||||||
Ownership percentage prior to acquisition (percent) | 35.00% | ||||||
Goodwill | 47,000,000 | ||||||
Intangible assets | $1,000,000 |
SecuritiesAmortized_Cost_Gross
Securities-Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Securities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | $127,214 | $117,868 | ||
Gross unrealized Gains | 2,590 | 2,122 | ||
Gross unrealized Losses | 411 | 533 | ||
Fair value | 129,393 | 119,457 | ||
AOCI, transfers from AFS to HTM Securities, gross unrealized gains | 101 | 60 | ||
AOCI, transfers from AFS to HTM Securities, gross unrealized losses | 296 | 282 | ||
Available-for-sale | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 85,977 | [1] | 96,935 | [2] |
Gross unrealized Gains | 2,123 | [1] | 1,854 | [2] |
Gross unrealized Losses | 383 | [1],[3] | 459 | [2],[4] |
Fair value | 87,717 | [1] | 98,330 | [2] |
Available-for-sale | U.S. Treasury | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 18,042 | 19,592 | ||
Gross unrealized Gains | 548 | 420 | ||
Gross unrealized Losses | 4 | 15 | ||
Fair value | 18,586 | 19,997 | ||
Available-for-sale | U.S. Government agencies | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 383 | 342 | ||
Gross unrealized Gains | 2 | 3 | ||
Gross unrealized Losses | 0 | 2 | ||
Fair value | 385 | 343 | ||
Available-for-sale | State and political subdivisions | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 5,053 | 5,176 | ||
Gross unrealized Gains | 106 | 95 | ||
Gross unrealized Losses | 20 | 24 | ||
Fair value | 5,139 | 5,247 | ||
Available-for-sale | Agency RMBS | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 25,029 | 32,568 | ||
Gross unrealized Gains | 445 | 357 | ||
Gross unrealized Losses | 291 | 325 | ||
Fair value | 25,183 | 32,600 | ||
Available-for-sale | Non-agency RMBS | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 908 | 942 | ||
Gross unrealized Gains | 36 | 37 | ||
Gross unrealized Losses | 24 | 26 | ||
Fair value | 920 | 953 | ||
Available-for-sale | Other RMBS | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 1,382 | 1,551 | ||
Gross unrealized Gains | 23 | 25 | ||
Gross unrealized Losses | 19 | 25 | ||
Fair value | 1,386 | 1,551 | ||
Available-for-sale | Commercial MBS | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 1,812 | 1,927 | ||
Gross unrealized Gains | 44 | 39 | ||
Gross unrealized Losses | 5 | 7 | ||
Fair value | 1,851 | 1,959 | ||
Available-for-sale | Agency commercial MBS | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 3,728 | 3,105 | ||
Gross unrealized Gains | 64 | 36 | ||
Gross unrealized Losses | 7 | 9 | ||
Fair value | 3,785 | 3,132 | ||
Available-for-sale | Asset-backed CLOs | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 2,250 | 2,128 | ||
Gross unrealized Gains | 9 | 9 | ||
Gross unrealized Losses | 1 | 7 | ||
Fair value | 2,258 | 2,130 | ||
Available-for-sale | Other asset-backed securities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 3,398 | 3,241 | ||
Gross unrealized Gains | 6 | 5 | ||
Gross unrealized Losses | 4 | 6 | ||
Fair value | 3,400 | 3,240 | ||
Available-for-sale | Foreign covered bonds | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 2,732 | 2,788 | ||
Gross unrealized Gains | 76 | 80 | ||
Gross unrealized Losses | 0 | 0 | ||
Fair value | 2,808 | 2,868 | ||
Available-for-sale | Corporate bonds | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 1,695 | 1,747 | ||
Gross unrealized Gains | 52 | 45 | ||
Gross unrealized Losses | 2 | 7 | ||
Fair value | 1,745 | 1,785 | ||
Available-for-sale | Sovereign debt/sovereign guaranteed | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 14,988 | 17,062 | ||
Gross unrealized Gains | 258 | 224 | ||
Gross unrealized Losses | 3 | 2 | ||
Fair value | 15,243 | 17,284 | ||
Available-for-sale | Other debt securities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 2,057 | 2,162 | ||
Gross unrealized Gains | 11 | 7 | ||
Gross unrealized Losses | 0 | 0 | ||
Fair value | 2,068 | 2,169 | ||
Available-for-sale | Equity securities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 91 | 94 | ||
Gross unrealized Gains | 1 | 1 | ||
Gross unrealized Losses | 0 | 0 | ||
Fair value | 92 | 95 | ||
Available-for-sale | Money market funds | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 730 | 763 | ||
Gross unrealized Gains | 0 | 0 | ||
Gross unrealized Losses | 0 | 0 | ||
Fair value | 730 | 763 | ||
Available-for-sale | Non-agency RMBS | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 1,699 | [5] | 1,747 | [5] |
Gross unrealized Gains | 442 | [5] | 471 | [5] |
Gross unrealized Losses | 3 | [5] | 4 | [5] |
Fair value | 2,138 | [5] | 2,214 | [5] |
Held-to-maturity | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 41,237 | 20,933 | ||
Gross unrealized Gains | 467 | 268 | ||
Gross unrealized Losses | 28 | 74 | ||
Fair value | 41,676 | 21,127 | ||
Held-to-maturity | U.S. Treasury | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 10,372 | 5,047 | ||
Gross unrealized Gains | 92 | 32 | ||
Gross unrealized Losses | 2 | 16 | ||
Fair value | 10,462 | 5,063 | ||
Held-to-maturity | U.S. Government agencies | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 1,168 | 344 | ||
Gross unrealized Gains | 1 | 0 | ||
Gross unrealized Losses | 0 | 3 | ||
Fair value | 1,169 | 341 | ||
Held-to-maturity | State and political subdivisions | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 21 | 24 | ||
Gross unrealized Gains | 0 | 1 | ||
Gross unrealized Losses | 1 | 1 | ||
Fair value | 20 | 24 | ||
Held-to-maturity | Agency RMBS | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 25,606 | 14,006 | ||
Gross unrealized Gains | 326 | 200 | ||
Gross unrealized Losses | 14 | 44 | ||
Fair value | 25,918 | 14,162 | ||
Held-to-maturity | Non-agency RMBS | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 144 | 153 | ||
Gross unrealized Gains | 8 | 9 | ||
Gross unrealized Losses | 2 | 2 | ||
Fair value | 150 | 160 | ||
Held-to-maturity | Other RMBS | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 267 | 315 | ||
Gross unrealized Gains | 3 | 2 | ||
Gross unrealized Losses | 9 | 8 | ||
Fair value | 261 | 309 | ||
Held-to-maturity | Commercial MBS | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 11 | 13 | ||
Gross unrealized Gains | 0 | 0 | ||
Gross unrealized Losses | 0 | 0 | ||
Fair value | 11 | 13 | ||
Held-to-maturity | Agency commercial MBS | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 359 | |||
Gross unrealized Gains | 4 | |||
Gross unrealized Losses | 0 | |||
Fair value | 363 | |||
Held-to-maturity | Sovereign debt/sovereign guaranteed | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 3,289 | 1,031 | ||
Gross unrealized Gains | 33 | 24 | ||
Gross unrealized Losses | 0 | 0 | ||
Fair value | 3,322 | 1,055 | ||
Held-to-maturity | Agency MBS, Sovereign Debt and U.S Treasury Securities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Amortized cost | 11,600 | |||
Fair value | $11,600 | |||
[1] | Includes gross unrealized gains of $101 million and gross unrealized losses of $296 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||
[2] | Includes gross unrealized gains of $60 million and gross unrealized losses of $282 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||
[3] | Includes gross unrealized losses for 12 months or more of $296 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||
[4] | Includes gross unrealized losses for 12 months or more of $282 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||
[5] | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. |
SecuritiesNet_Securities_Gains
Securities-Net Securities Gains (Losses) (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Securities [Abstract] | |||
Realized gross gains | $25 | $41 | $30 |
Realized gross losses | 0 | 0 | -3 |
Recognized gross impairments | -1 | -10 | -5 |
Net securities gains | $24 | $31 | $22 |
SecuritiesAggregate_Fair_Value
Securities-Aggregate Fair Value of Investments with Continuous Unrealized Loss Position (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | $8,519 | $17,297 | ||
Less than 12 months Unrealized losses | 48 | 71 | ||
12 months or more Fair value | 6,845 | 14,046 | ||
12 months or more Unrealized losses | 363 | 462 | ||
Total Fair value | 15,364 | 31,343 | ||
Total Unrealized losses | 411 | 533 | ||
Securities available-for-sale | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 6,329 | [1] | 15,635 | [2] |
Less than 12 months Unrealized losses | 42 | [1] | 61 | [2] |
12 months or more Fair value | 3,996 | [1] | 8,087 | [2] |
12 months or more Unrealized losses | 341 | [1] | 398 | [2] |
Total Fair value | 10,325 | [1] | 23,722 | [2] |
Total Unrealized losses | 383 | [1],[3] | 459 | [2],[4] |
Securities available-for-sale | U.S. Treasury | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 643 | 6,049 | ||
Less than 12 months Unrealized losses | 4 | 15 | ||
12 months or more Fair value | 0 | 0 | ||
12 months or more Unrealized losses | 0 | 0 | ||
Total Fair value | 643 | 6,049 | ||
Total Unrealized losses | 4 | 15 | ||
Securities available-for-sale | U.S. Government agencies | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 32 | |||
Less than 12 months Unrealized losses | 0 | |||
12 months or more Fair value | 100 | |||
12 months or more Unrealized losses | 2 | |||
Total Fair value | 132 | |||
Total Unrealized losses | 0 | 2 | ||
Securities available-for-sale | State and political subdivisions | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 260 | 410 | ||
Less than 12 months Unrealized losses | 15 | 18 | ||
12 months or more Fair value | 300 | 393 | ||
12 months or more Unrealized losses | 5 | 6 | ||
Total Fair value | 560 | 803 | ||
Total Unrealized losses | 20 | 24 | ||
Securities available-for-sale | Agency RMBS | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 789 | 3,385 | ||
Less than 12 months Unrealized losses | 13 | 13 | ||
12 months or more Fair value | 1,575 | 5,016 | ||
12 months or more Unrealized losses | 278 | 312 | ||
Total Fair value | 2,364 | 8,401 | ||
Total Unrealized losses | 291 | 325 | ||
Securities available-for-sale | Non-agency RMBS | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 198 | 143 | ||
Less than 12 months Unrealized losses | 1 | 1 | ||
12 months or more Fair value | 367 | 382 | ||
12 months or more Unrealized losses | 23 | 25 | ||
Total Fair value | 565 | 525 | ||
Total Unrealized losses | 24 | 26 | ||
Securities available-for-sale | Other RMBS | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 0 | 0 | ||
Less than 12 months Unrealized losses | 0 | 0 | ||
12 months or more Fair value | 392 | 449 | ||
12 months or more Unrealized losses | 19 | 25 | ||
Total Fair value | 392 | 449 | ||
Total Unrealized losses | 19 | 25 | ||
Securities available-for-sale | Commercial MBS | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 123 | 175 | ||
Less than 12 months Unrealized losses | 0 | 1 | ||
12 months or more Fair value | 221 | 394 | ||
12 months or more Unrealized losses | 5 | 6 | ||
Total Fair value | 344 | 569 | ||
Total Unrealized losses | 5 | 7 | ||
Securities available-for-sale | Agency commercial MBS | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 853 | 719 | ||
Less than 12 months Unrealized losses | 3 | 1 | ||
12 months or more Fair value | 410 | 550 | ||
12 months or more Unrealized losses | 4 | 8 | ||
Total Fair value | 1,263 | 1,269 | ||
Total Unrealized losses | 7 | 9 | ||
Securities available-for-sale | Asset-backed CLOs | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 806 | 1,376 | ||
Less than 12 months Unrealized losses | 1 | 7 | ||
12 months or more Fair value | 0 | 0 | ||
12 months or more Unrealized losses | 0 | 0 | ||
Total Fair value | 806 | 1,376 | ||
Total Unrealized losses | 1 | 7 | ||
Securities available-for-sale | Other asset-backed securities | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 865 | 1,078 | ||
Less than 12 months Unrealized losses | 1 | 2 | ||
12 months or more Fair value | 505 | 539 | ||
12 months or more Unrealized losses | 3 | 4 | ||
Total Fair value | 1,370 | 1,617 | ||
Total Unrealized losses | 4 | 6 | ||
Securities available-for-sale | Corporate bonds | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 2 | 51 | ||
Less than 12 months Unrealized losses | 0 | 0 | ||
12 months or more Fair value | 192 | 230 | ||
12 months or more Unrealized losses | 2 | 7 | ||
Total Fair value | 194 | 281 | ||
Total Unrealized losses | 2 | 7 | ||
Securities available-for-sale | Sovereign debt/sovereign guaranteed | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 1,736 | 2,175 | ||
Less than 12 months Unrealized losses | 3 | 2 | ||
12 months or more Fair value | 0 | 0 | ||
12 months or more Unrealized losses | 0 | 0 | ||
Total Fair value | 1,736 | 2,175 | ||
Total Unrealized losses | 3 | 2 | ||
Securities available-for-sale | Non-agency RMBS | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 54 | [5] | 42 | [5] |
Less than 12 months Unrealized losses | 1 | [5] | 1 | [5] |
12 months or more Fair value | 34 | [5] | 34 | [5] |
12 months or more Unrealized losses | 2 | [5] | 3 | [5] |
Total Fair value | 88 | [5] | 76 | [5] |
Total Unrealized losses | 3 | [5] | 4 | [5] |
Held-to-maturity | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 2,190 | 1,662 | ||
Less than 12 months Unrealized losses | 6 | 10 | ||
12 months or more Fair value | 2,849 | 5,959 | ||
12 months or more Unrealized losses | 22 | 64 | ||
Total Fair value | 5,039 | 7,621 | ||
Total Unrealized losses | 28 | 74 | ||
Held-to-maturity | U.S. Treasury | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 1,316 | 1,066 | ||
Less than 12 months Unrealized losses | 2 | 6 | ||
12 months or more Fair value | 198 | 1,559 | ||
12 months or more Unrealized losses | 0 | 10 | ||
Total Fair value | 1,514 | 2,625 | ||
Total Unrealized losses | 2 | 16 | ||
Held-to-maturity | U.S. Government agencies | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 0 | |||
Less than 12 months Unrealized losses | 0 | |||
12 months or more Fair value | 340 | |||
12 months or more Unrealized losses | 3 | |||
Total Fair value | 340 | |||
Total Unrealized losses | 0 | 3 | ||
Held-to-maturity | State and political subdivisions | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 4 | 5 | ||
Less than 12 months Unrealized losses | 1 | 1 | ||
12 months or more Fair value | 0 | 0 | ||
12 months or more Unrealized losses | 0 | 0 | ||
Total Fair value | 4 | 5 | ||
Total Unrealized losses | 1 | 1 | ||
Held-to-maturity | Agency RMBS | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 826 | 551 | ||
Less than 12 months Unrealized losses | 3 | 3 | ||
12 months or more Fair value | 2,434 | 3,808 | ||
12 months or more Unrealized losses | 11 | 41 | ||
Total Fair value | 3,260 | 4,359 | ||
Total Unrealized losses | 14 | 44 | ||
Held-to-maturity | Non-agency RMBS | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 44 | 40 | ||
Less than 12 months Unrealized losses | 0 | 0 | ||
12 months or more Fair value | 32 | 33 | ||
12 months or more Unrealized losses | 2 | 2 | ||
Total Fair value | 76 | 73 | ||
Total Unrealized losses | 2 | 2 | ||
Held-to-maturity | Other RMBS | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Less than 12 months Fair value | 0 | 0 | ||
Less than 12 months Unrealized losses | 0 | 0 | ||
12 months or more Fair value | 185 | 219 | ||
12 months or more Unrealized losses | 9 | 8 | ||
Total Fair value | 185 | 219 | ||
Total Unrealized losses | 9 | 8 | ||
Held-to-maturity | Commercial MBS | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Total Unrealized losses | 0 | 0 | ||
Held-to-maturity | Agency commercial MBS | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Total Unrealized losses | 0 | |||
Held-to-maturity | Sovereign debt/sovereign guaranteed | ||||
Investments, Unrealized Loss Position [Line Items] | ||||
Total Unrealized losses | $0 | $0 | ||
[1] | Includes gross unrealized losses for 12 months or more of $296 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||
[2] | Includes gross unrealized losses for 12 months or more of $282 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||
[3] | Includes gross unrealized gains of $101 million and gross unrealized losses of $296 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||
[4] | Includes gross unrealized gains of $60 million and gross unrealized losses of $282 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses primarily related to Agency RMBS and will be amortized into net interest revenue over the estimated lives of the securities. | |||
[5] | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. |
SecuritiesMaturity_Distributio
Securities-Maturity Distribution by Carrying Amount and Yield (on Tax Equivalent Basis) of Investment Securities Portfolio (Detail) (USD $) | Mar. 31, 2015 | |
In Millions, unless otherwise specified | ||
Securities available-for-sale: | ||
One year or less | $9,555 | |
Over 1 through 5 years | 25,894 | |
Over 5 through 10 years | 6,337 | |
Over 10 years | 4,188 | |
Total | 87,717 | |
Securities held-to-maturity: | ||
One year or less | 1,611 | |
Over 1 through 5 years | 10,052 | |
Over 5 through 10 years | 3,172 | |
Over 10 years | 15 | |
Held-to-maturity (fair value of $41,676 and $21,127) | 41,237 | |
Mortgage-backed securities | ||
Securities available-for-sale: | ||
Without single maturity date | 35,263 | |
Securities held-to-maturity: | ||
Mortgage-backed securities | 26,387 | |
Asset-backed securities | ||
Securities available-for-sale: | ||
Without single maturity date | 5,658 | |
Equity securities | ||
Securities available-for-sale: | ||
Without single maturity date | 822 | [1] |
U.S. Treasury | ||
Securities available-for-sale: | ||
One year or less | 1,759 | |
Over 1 through 5 years | 10,914 | |
Over 5 through 10 years | 2,223 | |
Over 10 years | 3,690 | |
Total | 18,586 | |
Securities held-to-maturity: | ||
One year or less | 150 | |
Over 1 through 5 years | 7,760 | |
Over 5 through 10 years | 2,462 | |
Over 10 years | 0 | |
Held-to-maturity (fair value of $41,676 and $21,127) | 10,372 | |
Securities available-for-sale (percent): | ||
One year or less (percent) | 0.95% | [2] |
Over 1 through 5 years (percent) | 0.89% | [2] |
Over 5 through 10 years (percent) | 2.52% | [2] |
Over 10 years (percent) | 3.11% | [2] |
Total (percent) | 1.53% | [2] |
Securities held-to-maturity (percent): | ||
One year or less (percent) | 0.28% | [2] |
Over 1 through 5 years (percent) | 1.07% | [2] |
Over 5 through 10 years (percent) | 2.06% | [2] |
Over 10 years (percent) | 0.00% | |
Total (percent) | 1.30% | [2] |
U.S. Government agencies | ||
Securities available-for-sale: | ||
One year or less | 126 | |
Over 1 through 5 years | 259 | |
Over 5 through 10 years | 0 | |
Over 10 years | 0 | |
Total | 385 | |
Securities held-to-maturity: | ||
One year or less | 0 | |
Over 1 through 5 years | 968 | |
Over 5 through 10 years | 200 | |
Over 10 years | 0 | |
Held-to-maturity (fair value of $41,676 and $21,127) | 1,168 | |
Securities available-for-sale (percent): | ||
One year or less (percent) | 1.86% | [2] |
Over 1 through 5 years (percent) | 1.66% | [2] |
Over 5 through 10 years (percent) | 0.00% | |
Over 10 years (percent) | 0.00% | |
Total (percent) | 1.73% | [2] |
Securities held-to-maturity (percent): | ||
One year or less (percent) | 0.00% | |
Over 1 through 5 years (percent) | 1.05% | [2] |
Over 5 through 10 years (percent) | 1.19% | [2] |
Over 10 years (percent) | 0.00% | |
Total (percent) | 1.07% | [2] |
State and political subdivisions | ||
Securities available-for-sale: | ||
One year or less | 462 | |
Over 1 through 5 years | 2,938 | |
Over 5 through 10 years | 1,506 | |
Over 10 years | 233 | |
Total | 5,139 | |
Securities held-to-maturity: | ||
One year or less | 0 | |
Over 1 through 5 years | 1 | |
Over 5 through 10 years | 5 | |
Over 10 years | 15 | |
Held-to-maturity (fair value of $41,676 and $21,127) | 21 | |
Securities available-for-sale (percent): | ||
One year or less (percent) | 1.40% | [2] |
Over 1 through 5 years (percent) | 2.26% | [2] |
Over 5 through 10 years (percent) | 3.80% | [2] |
Over 10 years (percent) | 1.81% | [2] |
Total (percent) | 2.62% | [2] |
Securities held-to-maturity (percent): | ||
One year or less (percent) | 0.00% | |
Over 1 through 5 years (percent) | 7.32% | [2] |
Over 5 through 10 years (percent) | 6.95% | [2] |
Over 10 years (percent) | 3.77% | [2] |
Total (percent) | 4.74% | [2] |
Other bonds, notes and debentures | ||
Securities available-for-sale: | ||
One year or less | 7,208 | |
Over 1 through 5 years | 11,783 | |
Over 5 through 10 years | 2,608 | |
Over 10 years | 265 | |
Total | 21,864 | |
Securities held-to-maturity: | ||
One year or less | 1,461 | |
Over 1 through 5 years | 1,323 | |
Over 5 through 10 years | 505 | |
Over 10 years | 0 | |
Held-to-maturity (fair value of $41,676 and $21,127) | 3,289 | |
Securities available-for-sale (percent): | ||
One year or less (percent) | 0.58% | [2] |
Over 1 through 5 years (percent) | 1.03% | [2] |
Over 5 through 10 years (percent) | 2.19% | [2] |
Over 10 years (percent) | 1.45% | [2] |
Total (percent) | 1.02% | [2] |
Securities held-to-maturity (percent): | ||
One year or less (percent) | 0.24% | [2] |
Over 1 through 5 years (percent) | 0.58% | [2] |
Over 5 through 10 years (percent) | 0.88% | [2] |
Over 10 years (percent) | 0.00% | |
Total (percent) | 0.48% | [2] |
Mortgage/ asset-backed and equity securities | ||
Securities available-for-sale: | ||
Total | 41,743 | |
Securities held-to-maturity: | ||
Held-to-maturity (fair value of $41,676 and $21,127) | 26,387 | |
Securities available-for-sale (percent): | ||
Total (percent) | 2.42% | [2] |
Securities held-to-maturity (percent): | ||
Total (percent) | 2.65% | [2] |
Mortgage/ asset-backed and equity securities | Mortgage-backed securities | ||
Securities available-for-sale: | ||
Without single maturity date | 35,263 | |
Securities held-to-maturity: | ||
Mortgage-backed securities | 26,387 | |
Securities available-for-sale (percent): | ||
Without single maturity date (percent) | 2.69% | [2] |
Securities held-to-maturity (percent): | ||
Without single maturity date (percent) | 2.65% | [2] |
Mortgage/ asset-backed and equity securities | Asset-backed securities | ||
Securities available-for-sale: | ||
Without single maturity date | 5,658 | |
Securities available-for-sale (percent): | ||
Without single maturity date (percent) | 1.07% | [2] |
Mortgage/ asset-backed and equity securities | Equity securities | ||
Securities available-for-sale: | ||
Without single maturity date | $822 | [1] |
Securities available-for-sale (percent): | ||
Without single maturity date (percent) | 0.00% | |
[1] | Includes money market funds. | |
[2] | Yields are based upon the amortized cost of securities. |
SecuritiesProjected_WeightedAv
Securities-Projected Weighted-Average Default Rates and Loss Severities (Detail) (Recent Vintage) | Mar. 31, 2015 | Dec. 31, 2014 |
Alt-A | ||
Gain (Loss) on Investments [Line Items] | ||
Default rate (percent) | 38.00% | 38.00% |
Severity (percent) | 58.00% | 58.00% |
Subprime | ||
Gain (Loss) on Investments [Line Items] | ||
Default rate (percent) | 54.00% | 55.00% |
Severity (percent) | 73.00% | 74.00% |
Prime | ||
Gain (Loss) on Investments [Line Items] | ||
Default rate (percent) | 24.00% | 23.00% |
Severity (percent) | 41.00% | 42.00% |
SecuritiesPreTax_Net_Securitie
Securities-Pre-Tax Net Securities Gains (Losses) by Type (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Net securities gains | $24 | $31 | $22 |
U.S. Treasury | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Net securities gains | 23 | 13 | 10 |
Non-agency RMBS | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Net securities gains | -1 | 17 | -2 |
Other securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Net securities gains | $2 | $1 | $14 |
SecuritiesDebt_Securities_Cred
Securities-Debt Securities Credit Losses Roll Forward Recorded in Earnings (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other than Temporary Impairment [Roll Forward] | ||
Beginning balance | $93 | $119 |
Add: Initial OTTI credit losses | 0 | 2 |
Subsequent OTTI credit losses | 1 | 3 |
Less: Realized losses for securities sold | 2 | 18 |
Ending balance | $92 | $106 |
Securities_Pledged_assets_Deta
Securities - Pledged assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Billions, unless otherwise specified | ||
Transfers and Servicing [Abstract] | ||
Pledged assets | $104 | $99 |
Pledged collateral for potential borrowings at the Federal Reserve Discount Window | 86 | 74 |
Pledged securities | 92 | 90 |
Pledged loans | 6 | 6 |
Pledged trading assets | 3 | 2 |
Pledged interest-bearing deposits | 3 | 1 |
Pledged assets permitted to be sold or repledged | 8 | 9 |
Market value of securities that can be sold or repledged | 57 | 47 |
Fair value of securities received as collateral that have been resold or repledged | $19 | $19 |
Loans_and_asset_quality_Detail
Loans and asset quality- Details of Loan Distribution and Industry Concentrations of Credit Risk (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||
In Millions, unless otherwise specified | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | $62,326 | [1] | $59,132 | [1] | |
Unearned income on lease financings | 843 | 866 | |||
Financial institutions | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 14,667 | 13,319 | |||
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 1,971 | 1,642 | |||
Wealth management loans and mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 11,649 | 11,184 | |||
Commercial real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 3,062 | 2,530 | |||
Other residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 1,181 | 1,222 | |||
Overdrafts | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 6,993 | 5,882 | |||
Margin loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 19,566 | 20,034 | |||
Domestic | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 46,376 | 45,611 | |||
Domestic | Financial institutions | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 5,665 | 5,603 | |||
Domestic | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 1,686 | 1,390 | |||
Domestic | Wealth management loans and mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 11,547 | 11,095 | |||
Domestic | Commercial real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 3,021 | 2,524 | |||
Domestic | Lease financings | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 1,197 | 1,282 | |||
Domestic | Other residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 1,181 | 1,222 | |||
Domestic | Overdrafts | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 1,513 | 1,348 | 1,078 | ||
Domestic | Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 1,107 | 1,113 | 788 | ||
Domestic | Margin loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 19,459 | 20,034 | 16,430 | ||
Foreign | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 15,950 | 13,521 | |||
Foreign | Financial institutions | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 9,002 | 7,716 | |||
Foreign | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 285 | 252 | |||
Foreign | Wealth management loans and mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 102 | 89 | |||
Foreign | Commercial real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 41 | 6 | |||
Foreign | Lease financings | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 893 | 889 | |||
Foreign | Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 5,520 | 4,569 | |||
Foreign | Margin loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | $107 | $0 | |||
[1] | Net of unearned income of $843 million at March 31, 2015 and $866 million at Dec. 31, 2014 primarily on domestic and foreign lease financings. |
Loans_and_asset_quality_Allowa
Loans and asset quality- Allowance for Credit Losses Activity (Detail) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | $280 | $288 | $344 | |||
Charge-offs | 0 | -11 | -1 | |||
Recoveries | 1 | 2 | 1 | |||
Net (charge-offs) recoveries | 1 | -9 | 0 | |||
Provision | 2 | 1 | -18 | |||
Ending balance | 283 | 280 | 326 | |||
Loan losses | 190 | 191 | 198 | |||
Lending-related commitments | 93 | 89 | 128 | |||
Individually evaluated for impairment: | ||||||
Loan balance | 8 | 8 | 33 | |||
Allowance for loan losses | 1 | 1 | 8 | |||
Collectively evaluated for impairment: | ||||||
Loan balance | 62,178 | 59,103 | 54,003 | |||
Allowance for loan losses | 189 | 190 | 190 | |||
Loans | 62,326 | [1] | 59,132 | [1] | ||
Commercial | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 60 | 71 | 83 | |||
Charge-offs | 0 | -8 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | -8 | 0 | |||
Provision | 5 | -3 | -4 | |||
Ending balance | 65 | 60 | 79 | |||
Loan losses | 20 | 17 | 20 | |||
Lending-related commitments | 45 | 43 | 59 | |||
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 13 | |||
Allowance for loan losses | 0 | 0 | 3 | |||
Collectively evaluated for impairment: | ||||||
Loan balance | 1,686 | 1,390 | 1,741 | |||
Allowance for loan losses | 20 | 17 | 17 | |||
Loans | 1,971 | 1,642 | ||||
Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 50 | 47 | 41 | |||
Charge-offs | 0 | -2 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | -2 | 0 | |||
Provision | 3 | 5 | 1 | |||
Ending balance | 53 | 50 | 42 | |||
Loan losses | 31 | 32 | 23 | |||
Lending-related commitments | 22 | 18 | 19 | |||
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 3 | |||
Allowance for loan losses | 0 | 0 | 1 | |||
Collectively evaluated for impairment: | ||||||
Loan balance | 2,881 | 2,503 | 2,125 | |||
Allowance for loan losses | 31 | 32 | 22 | |||
Loans | 3,062 | 2,530 | ||||
Financial institutions | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 31 | 25 | 49 | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 1 | 0 | |||
Net (charge-offs) recoveries | 0 | 1 | 0 | |||
Provision | 2 | 5 | -1 | |||
Ending balance | 33 | 31 | 48 | |||
Loan losses | 19 | 17 | 9 | |||
Lending-related commitments | 14 | 14 | 39 | |||
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | |||
Allowance for loan losses | 0 | 0 | 0 | |||
Collectively evaluated for impairment: | ||||||
Loan balance | 5,665 | 5,603 | 4,492 | |||
Allowance for loan losses | 19 | 17 | 9 | |||
Loans | 14,667 | 13,319 | ||||
Lease financings | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 32 | 34 | 37 | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | 0 | 0 | |||
Provision | -1 | -2 | -2 | |||
Ending balance | 31 | 32 | 35 | |||
Loan losses | 31 | 32 | 35 | |||
Lending-related commitments | 0 | 0 | 0 | |||
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | |||
Allowance for loan losses | 0 | 0 | 0 | |||
Collectively evaluated for impairment: | ||||||
Loan balance | 1,197 | 1,282 | 1,308 | |||
Allowance for loan losses | 31 | 32 | 35 | |||
Wealth management loans and mortgages | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 22 | 22 | 24 | |||
Charge-offs | 0 | -1 | 0 | |||
Recoveries | 0 | 1 | 0 | |||
Net (charge-offs) recoveries | 0 | 0 | 0 | |||
Provision | -1 | 0 | -1 | |||
Ending balance | 21 | 22 | 23 | |||
Loan losses | 16 | 17 | 18 | |||
Lending-related commitments | 5 | 5 | 5 | |||
Individually evaluated for impairment: | ||||||
Loan balance | 8 | 8 | 10 | |||
Allowance for loan losses | 1 | 1 | 2 | |||
Collectively evaluated for impairment: | ||||||
Loan balance | 11,539 | 11,087 | 9,912 | |||
Allowance for loan losses | 15 | 16 | 16 | |||
Loans | 11,649 | 11,184 | ||||
Other residential mortgages | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 41 | 48 | 54 | |||
Charge-offs | 0 | 0 | -1 | |||
Recoveries | 1 | 0 | 1 | |||
Net (charge-offs) recoveries | 1 | 0 | 0 | |||
Provision | -2 | -7 | -4 | |||
Ending balance | 40 | 41 | 50 | |||
Loan losses | 40 | 41 | 50 | |||
Lending-related commitments | 0 | 0 | 0 | |||
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | |||
Allowance for loan losses | 0 | 0 | 0 | |||
Collectively evaluated for impairment: | ||||||
Loan balance | 1,181 | 1,222 | 1,346 | |||
Allowance for loan losses | 40 | 41 | 50 | |||
Loans | 1,181 | 1,222 | ||||
All Other | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | 0 | 0 | |||
Provision | 0 | 0 | 0 | |||
Ending balance | 0 | 0 | 0 | |||
Loan losses | 0 | 0 | 0 | |||
Lending-related commitments | 0 | 0 | 0 | |||
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | |||
Allowance for loan losses | 0 | 0 | 0 | |||
Collectively evaluated for impairment: | ||||||
Loan balance | 22,079 | [2] | 22,495 | [3] | 18,296 | [4] |
Allowance for loan losses | 0 | 0 | 0 | |||
Foreign | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 44 | 41 | 56 | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | 0 | 0 | |||
Provision | -4 | 3 | -7 | |||
Ending balance | 40 | 44 | 49 | |||
Loan losses | 33 | 35 | 43 | |||
Lending-related commitments | 7 | 9 | 6 | |||
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 7 | |||
Allowance for loan losses | 0 | 0 | 2 | |||
Collectively evaluated for impairment: | ||||||
Loan balance | 15,950 | 13,521 | 14,783 | |||
Allowance for loan losses | 33 | 35 | 41 | |||
Overdrafts | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 6,993 | 5,882 | ||||
Margin loans | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 19,566 | 20,034 | ||||
Domestic | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 46,376 | 45,611 | ||||
Domestic | Commercial | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 1,686 | 1,390 | ||||
Domestic | Commercial real estate | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 3,021 | 2,524 | ||||
Domestic | Financial institutions | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 5,665 | 5,603 | ||||
Domestic | Lease financings | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 1,197 | 1,282 | ||||
Domestic | Wealth management loans and mortgages | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 11,547 | 11,095 | ||||
Domestic | Other residential mortgages | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 1,181 | 1,222 | ||||
Domestic | Overdrafts | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 1,513 | 1,348 | 1,078 | |||
Domestic | Margin loans | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 19,459 | 20,034 | 16,430 | |||
Domestic | Other | ||||||
Collectively evaluated for impairment: | ||||||
Loans | $1,107 | $1,113 | $788 | |||
[1] | Net of unearned income of $843 million at March 31, 2015 and $866 million at Dec. 31, 2014 primarily on domestic and foreign lease financings. | |||||
[2] | Includes $1,513 million of domestic overdrafts, $19,459 million of margin loans and $1,107 million of other loans at March 31, 2015. | |||||
[3] | Includes $1,348 million of domestic overdrafts, $20,034 million of margin loans and $1,113 million of other loans at Dec. 31, 2014. | |||||
[4] | Includes $1,078 million of domestic overdrafts, $16,430 million of margin loans and $788 million of other loans at March 31, 2014. |
Loans_and_asset_quality_Nonper
Loans and asset quality- Nonperforming Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Impaired [Line Items] | ||||
Nonperforming loans | $124 | $125 | ||
Other assets owned | 4 | 3 | ||
Total nonperforming assets | 128 | [1] | 128 | [1] |
Loans fair value | 73 | 53 | ||
Domestic | Other residential mortgages | ||||
Financing Receivable, Impaired [Line Items] | ||||
Nonperforming loans | 111 | 112 | ||
Domestic | Wealth management loans and mortgages | ||||
Financing Receivable, Impaired [Line Items] | ||||
Nonperforming loans | 12 | 12 | ||
Domestic | Commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Nonperforming loans | $1 | $1 | ||
[1] | Loans of consolidated investment management funds are not part of BNY Mellon’s loan portfolio. Included in the loans of consolidated investment management funds are nonperforming loans of $73 million at March 31, 2015 and $53 million at Dec. 31, 2014. These loans are recorded at fair value and therefore do not impact the provision for credit losses and allowance for loan losses, and accordingly are excluded from the nonperforming assets table above. |
Loans_and_asset_quality_Lost_I
Loans and asset quality- Lost Interest (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Receivables [Abstract] | |||
Amount by which interest income recognized on nonperforming loans exceeded reversals | $0 | $0 | $0 |
Amount by which interest income would have increased if nonperforming loans at period-end had been performing for the entire period | $2 | $2 | $2 |
Loans_and_asset_quality_Inform
Loans and asset quality- Information about Impaired Loans (Detail) (USD $) | 3 Months Ended | |||||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | $6,000,000 | $14,000,000 | $32,000,000 | |||
Impaired loans without an allowance, average recorded investment | 2,000,000 | [1] | 3,000,000 | [1] | 3,000,000 | [1] |
Total impaired loans, average recorded investment | 8,000,000 | 17,000,000 | 35,000,000 | |||
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | |||
Impaired loans without an allowance, interest income recognized | 0 | [1] | 0 | [1] | 0 | [1] |
Total impaired loans, interest income recognized | 0 | 0 | 0 | |||
Impaired loans with an allowance, recorded investment | 6,000,000 | 6,000,000 | ||||
Impaired loans without an allowance, recorded investment | 2,000,000 | [1] | 3,000,000 | [1] | ||
Total impaired loans, recorded investment | 8,000,000 | [2] | 9,000,000 | [2] | ||
Impaired loans with an allowance, unpaid Principal balance | 9,000,000 | 6,000,000 | ||||
Impaired loans without an allowance, unpaid Principal balance | 2,000,000 | [1] | 5,000,000 | [1] | ||
Total impaired loans, unpaid Principal balance | 11,000,000 | [2] | 11,000,000 | [2] | ||
Impaired loans with an allowance, related allowance | 1,000,000 | [2],[3] | 1,000,000 | [2],[3] | ||
Loans Individually Less Than 1 Million | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, recorded investment | 1,000,000 | 1,000,000 | ||||
Commercial | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | 0 | 6,000,000 | 14,000,000 | |||
Impaired loans without an allowance, average recorded investment | 0 | 0 | 0 | |||
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | |||
Impaired loans without an allowance, interest income recognized | 0 | 0 | 0 | |||
Impaired loans with an allowance, recorded investment | 0 | 0 | ||||
Impaired loans with an allowance, unpaid Principal balance | 0 | 0 | ||||
Impaired loans with an allowance, related allowance | 0 | [3] | 0 | [3] | ||
Commercial real estate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | 0 | 1,000,000 | 3,000,000 | |||
Impaired loans without an allowance, average recorded investment | 0 | 1,000,000 | 1,000,000 | |||
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | |||
Impaired loans without an allowance, interest income recognized | 0 | 0 | 0 | |||
Impaired loans with an allowance, recorded investment | 0 | 0 | ||||
Impaired loans without an allowance, recorded investment | 0 | 1,000,000 | ||||
Impaired loans with an allowance, unpaid Principal balance | 3,000,000 | 0 | ||||
Impaired loans without an allowance, unpaid Principal balance | 0 | 3,000,000 | ||||
Impaired loans with an allowance, related allowance | 0 | [3] | 0 | [3] | ||
Financial institutions | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | 0 | 0 | 0 | |||
Impaired loans without an allowance, average recorded investment | 0 | 0 | 0 | |||
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | |||
Impaired loans without an allowance, interest income recognized | 0 | 0 | 0 | |||
Impaired loans with an allowance, recorded investment | 0 | 0 | ||||
Impaired loans with an allowance, unpaid Principal balance | 0 | 0 | ||||
Impaired loans with an allowance, related allowance | 0 | [3] | 0 | [3] | ||
Wealth management loans and mortgages | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | 6,000,000 | 7,000,000 | 9,000,000 | |||
Impaired loans without an allowance, average recorded investment | 2,000,000 | 2,000,000 | 2,000,000 | |||
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | |||
Impaired loans without an allowance, interest income recognized | 0 | 0 | 0 | |||
Impaired loans with an allowance, recorded investment | 6,000,000 | 6,000,000 | ||||
Impaired loans without an allowance, recorded investment | 2,000,000 | 2,000,000 | ||||
Impaired loans with an allowance, unpaid Principal balance | 6,000,000 | 6,000,000 | ||||
Impaired loans without an allowance, unpaid Principal balance | 2,000,000 | 2,000,000 | ||||
Impaired loans with an allowance, related allowance | 1,000,000 | [3] | 1,000,000 | [3] | ||
Foreign | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | 0 | 0 | 6,000,000 | |||
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | |||
Impaired loans with an allowance, recorded investment | 0 | 0 | ||||
Impaired loans with an allowance, unpaid Principal balance | 0 | 0 | ||||
Impaired loans with an allowance, related allowance | 0 | [3] | 0 | [3] | ||
Maximum | Loans Individually Less Than 1 Million | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, recorded investment | 1,000,000 | 1,000,000 | ||||
Impaired loans with an allowance, related allowance | $1,000,000 | $1,000,000 | ||||
[1] | When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans. | |||||
[2] | Excludes an aggregate of less than $1 million of impaired loans in amounts individually less than $1 million at both March 31, 2015 and Dec. 31, 2014. The allowance for loan loss associated with these loans totaled less than $1 million at both March 31, 2015 and Dec. 31, 2014. | |||||
[3] | The allowance for impaired loans is included in the allowance for loan losses. |
Loans_and_asset_quality_Inform1
Loans and asset quality- Information about Past Due Loans (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | $176 | $156 | ||
Domestic | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 126 | 156 | ||
Domestic | Financial institutions | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 6 | 0 | ||
Domestic | Wealth management loans and mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 48 | 46 | ||
Domestic | Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 43 | 79 | ||
Domestic | Other residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 29 | 31 | ||
Foreign | Financial institutions | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 50 | [1] | 0 | [1] |
30 to 59 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 147 | 147 | ||
30 to 59 Days Past Due | Domestic | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 117 | 147 | ||
30 to 59 Days Past Due | Domestic | Financial institutions | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 6 | 0 | ||
30 to 59 Days Past Due | Domestic | Wealth management loans and mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 48 | 45 | ||
30 to 59 Days Past Due | Domestic | Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 43 | 79 | ||
30 to 59 Days Past Due | Domestic | Other residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 20 | 23 | ||
30 to 59 Days Past Due | Foreign | Financial institutions | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 30 | [1] | 0 | [1] |
60 to 89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 25 | 3 | ||
60 to 89 Days Past Due | Domestic | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 5 | 3 | ||
60 to 89 Days Past Due | Domestic | Financial institutions | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
60 to 89 Days Past Due | Domestic | Wealth management loans and mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
60 to 89 Days Past Due | Domestic | Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
60 to 89 Days Past Due | Domestic | Other residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 5 | 3 | ||
60 to 89 Days Past Due | Foreign | Financial institutions | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 20 | [1] | 0 | [1] |
Equal to Greater than 90 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 4 | 6 | ||
Equal to Greater than 90 Days Past Due | Domestic | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 4 | 6 | ||
Equal to Greater than 90 Days Past Due | Domestic | Financial institutions | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Equal to Greater than 90 Days Past Due | Domestic | Wealth management loans and mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 1 | ||
Equal to Greater than 90 Days Past Due | Domestic | Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Equal to Greater than 90 Days Past Due | Domestic | Other residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 4 | 5 | ||
Equal to Greater than 90 Days Past Due | Foreign | Financial institutions | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | $0 | [1] | $0 | [1] |
[1] | Substantially all of these past due loans have been repaid subsequent to March 31, 2015. |
Loans_and_asset_quality_Troubl
Loans and asset quality- Troubled Debt Restructurings (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Contract | Contract | Contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of contracts (contracts) | 19 | 22 | 32 |
Outstanding recorded investment Pre-modification | $4 | $3 | $10 |
Outstanding recorded investment Post- modification | 4 | 4 | 9 |
Domestic | Other residential mortgages | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts (contracts) | 19 | 22 | 31 |
Outstanding recorded investment Pre-modification | 4 | 3 | 5 |
Outstanding recorded investment Post- modification | 4 | 4 | 5 |
Foreign | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts (contracts) | 0 | 0 | 1 |
Outstanding recorded investment Pre-modification | 0 | 0 | 5 |
Outstanding recorded investment Post- modification | $0 | $0 | $4 |
Loans_and_asset_quality_Credit
Loans and asset quality- Credit Quality Indicators - Wealth Management Loans and Mortgages - Credit Risk Profile by Internally Assigned Grade (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | $62,326 | [1] | $59,132 | [1] |
Commercial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,971 | 1,642 | ||
Commercial real estate | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 3,062 | 2,530 | ||
Financial institutions | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 14,667 | 13,319 | ||
Wealth management mortgages | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 5,713 | 5,534 | ||
Wealth management loans and mortgages | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 11,649 | 11,184 | ||
Investment grade | Commercial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,711 | 1,381 | ||
Investment grade | Commercial real estate | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 2,082 | 1,641 | ||
Investment grade | Financial institutions | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 12,753 | 11,576 | ||
Investment grade | Wealth management loans: | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 5,848 | 5,621 | ||
Non-investment grade | Commercial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 260 | 261 | ||
Non-investment grade | Commercial real estate | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 980 | 889 | ||
Non-investment grade | Financial institutions | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,914 | 1,743 | ||
Non-investment grade | Wealth management loans: | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | $88 | $29 | ||
[1] | Net of unearned income of $843 million at March 31, 2015 and $866 million at Dec. 31, 2014 primarily on domestic and foreign lease financings. |
Loans_and_asset_quality_Additi
Loans and asset quality- Additional Information (Detail) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||
class_of_receivable | |||||
Segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of portfolio segments | 3 | ||||
Number of classes of financing receivables | 6 | ||||
Loans | $62,326 | [1] | $59,132 | [1] | |
Number of business days in which overdrafts are generally repaid | 2 days | ||||
Other residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Subsequently defaulted number of contracts (contracts) | 0 | ||||
Loans | 1,181 | 1,222 | |||
Wealth management mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan to value ratio at origination (percent) | 60.00% | ||||
Percentage of past due mortgages (percent) | 1.00% | ||||
Loans | 5,713 | 5,534 | |||
Wealth management mortgages | California State | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Geographic concentrations (percent) | 21.00% | ||||
Wealth management mortgages | New York State | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Geographic concentrations (percent) | 20.00% | ||||
Wealth management mortgages | Massachusetts | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Geographic concentrations (percent) | 15.00% | ||||
Wealth management mortgages | Florida | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Geographic concentrations (percent) | 8.00% | ||||
Wealth management mortgages | Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Geographic concentrations (percent) | 36.00% | ||||
Overdrafts | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 6,993 | 5,882 | |||
Number of business days in which overdrafts are generally repaid | 2 days | ||||
Margin loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 19,566 | 20,034 | |||
Domestic | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 46,376 | 45,611 | |||
Domestic | Other residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 1,181 | 1,222 | |||
Purchased mortgages | 337 | ||||
Purchased residential mortgages, loan to value ratio (percent) | 76.00% | ||||
Percentage of purchased residential mortgages that were at least 60 days delinquent (percent) | 18.00% | ||||
Domestic | Overdrafts | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 1,513 | 1,348 | 1,078 | ||
Domestic | Margin loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | $19,459 | $20,034 | $16,430 | ||
Domestic | Margin loans | Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Required daily collateral margin (percent) | 100.00% | ||||
[1] | Net of unearned income of $843 million at March 31, 2015 and $866 million at Dec. 31, 2014 primarily on domestic and foreign lease financings. |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets-Goodwill by Business Segment (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill [Roll Forward] | ||
Beginning Balance | $17,869 | $18,073 |
Acquisitions | 10 | |
Foreign currency translation | -216 | 27 |
Ending Balance | 17,663 | 18,100 |
Investment Management | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 9,352 | 9,473 |
Acquisitions | 10 | |
Foreign currency translation | -109 | 20 |
Ending Balance | 9,253 | 9,493 |
Investment Services | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 8,467 | 8,550 |
Acquisitions | 0 | |
Foreign currency translation | -107 | 7 |
Ending Balance | 8,360 | 8,557 |
Other | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 50 | 50 |
Acquisitions | 0 | |
Foreign currency translation | 0 | 0 |
Ending Balance | $50 | $50 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets-Intangible Assets by Business Segment (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Intangible Assets [Roll Forward] | |||
Beginning Balance | $4,127 | $4,452 | |
Acquisitions | 9 | ||
Amortization | -66 | -73 | -75 |
Foreign currency translation | -23 | 3 | |
Ending Balance | 4,047 | 4,127 | 4,380 |
Investment Management | |||
Intangible Assets [Roll Forward] | |||
Beginning Balance | 1,923 | 2,065 | |
Acquisitions | 9 | ||
Amortization | -25 | -31 | |
Foreign currency translation | -16 | 3 | |
Ending Balance | 1,891 | 2,037 | |
Investment Services | |||
Intangible Assets [Roll Forward] | |||
Beginning Balance | 1,355 | 1,538 | |
Acquisitions | 0 | ||
Amortization | -41 | -44 | |
Foreign currency translation | -7 | 0 | |
Ending Balance | 1,307 | 1,494 | |
Other | |||
Intangible Assets [Roll Forward] | |||
Beginning Balance | 849 | 849 | |
Acquisitions | 0 | ||
Amortization | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Ending Balance | $849 | $849 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets-Intangible Assets by Type (Detail) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||
Intangible Assets by Major Class [Line Items] | ||||||
Gross carrying amount | 6,788 | |||||
Accumulated amortization | -2,741 | |||||
Net carrying amount | 4,047 | 4,127 | 4,380 | 4,452 | ||
Finite-lived Intangible Assets | ||||||
Intangible Assets by Major Class [Line Items] | ||||||
Gross carrying amount | 4,122 | |||||
Accumulated amortization | -2,741 | |||||
Net carrying amount | 1,381 | 1,452 | ||||
Finite-lived Intangible Assets | Weighted Average | ||||||
Intangible Assets by Major Class [Line Items] | ||||||
Remaining weighted- average amortization period | 11 years | |||||
Finite-lived Intangible Assets | Customer relationships—Investment Management | ||||||
Intangible Assets by Major Class [Line Items] | ||||||
Gross carrying amount | 1,733 | |||||
Accumulated amortization | -1,292 | |||||
Net carrying amount | 441 | 464 | ||||
Finite-lived Intangible Assets | Customer relationships—Investment Management | Weighted Average | ||||||
Intangible Assets by Major Class [Line Items] | ||||||
Remaining weighted- average amortization period | 11 years | |||||
Finite-lived Intangible Assets | Customer contracts—Investment Services | ||||||
Intangible Assets by Major Class [Line Items] | ||||||
Gross carrying amount | 2,314 | |||||
Accumulated amortization | -1,386 | |||||
Net carrying amount | 928 | 974 | ||||
Finite-lived Intangible Assets | Customer contracts—Investment Services | Weighted Average | ||||||
Intangible Assets by Major Class [Line Items] | ||||||
Remaining weighted- average amortization period | 11 years | |||||
Finite-lived Intangible Assets | Other | ||||||
Intangible Assets by Major Class [Line Items] | ||||||
Gross carrying amount | 75 | |||||
Accumulated amortization | -63 | |||||
Net carrying amount | 12 | 14 | ||||
Finite-lived Intangible Assets | Other | Weighted Average | ||||||
Intangible Assets by Major Class [Line Items] | ||||||
Remaining weighted- average amortization period | 4 years | |||||
Indefinite-lived Intangible Assets | ||||||
Intangible Assets by Major Class [Line Items] | ||||||
Gross carrying amount | 2,666 | [1] | ||||
Net carrying amount | 2,666 | [1] | 2,675 | [1] | ||
Indefinite-lived Intangible Assets | Customer relationships—Investment Management | ||||||
Intangible Assets by Major Class [Line Items] | ||||||
Gross carrying amount | 1,308 | [1] | ||||
Net carrying amount | 1,308 | [1] | 1,315 | [1] | ||
Indefinite-lived Intangible Assets | Trade name | ||||||
Intangible Assets by Major Class [Line Items] | ||||||
Gross carrying amount | 1,358 | [1] | ||||
Net carrying amount | 1,358 | [1] | $1,360 | [1] | ||
[1] | Intangible assets not subject to amortization have an indefinite life. |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets-Estimated Annual Amortization Expense (Detail) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2015 | $266 |
2016 | 240 |
2017 | 216 |
2018 | 181 |
2019 | $108 |
Other_Assets_Detail
Other Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Other Assets [Abstract] | ||||
Corporate/bank owned life insurance | $4,618 | $4,598 | ||
Accounts receivable | 4,534 | 4,166 | ||
Fails to deliver | 3,189 | 1,351 | ||
Equity in joint ventures and other investments | 3,170 | [1] | 3,287 | [1] |
Income taxes receivable | 1,552 | 2,142 | ||
Software | 1,332 | 1,332 | ||
Fair value of hedging derivatives | 1,038 | 851 | ||
Prepaid pension assets | 572 | 708 | ||
Prepaid expenses | 478 | 451 | ||
Due from customers on acceptances | 304 | 247 | ||
Other | 1,528 | 1,357 | ||
Total other assets | 22,315 | 20,490 | ||
Federal Reserve Bank stock | $448 | $447 | ||
[1] | Includes Federal Reserve Bank stock of $448 million and $447 million, respectively, at cost |
Other_Assets_Seed_Capital_and_
Other Assets - Seed Capital and Private Equity Investments Valued Using Net Asset Value (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||||
Fair value | $319 | $342 | ||
Unfunded commitments | 56 | 45 | ||
Seed capital and other funds | ||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||||
Fair value | 292 | [1] | 307 | [1] |
Unfunded commitments | 0 | [1] | 0 | [1] |
Redemption frequency | Daily-quarterly | [1] | Daily-quarterly | [1] |
Private equity investments | ||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||||
Fair value | 27 | [2],[3] | 35 | [2],[3] |
Unfunded commitments | 56 | [2],[3] | 45 | [2],[3] |
Small Business Investment Company | ||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||||
Fair value | 24 | [2],[3] | 18 | [2],[3] |
Unfunded commitments | $56 | [2],[3] | $45 | [2],[3] |
Minimum | Seed capital and other funds | ||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||||
Redemption notice period | 0 days | [1] | 0 days | [1] |
Maximum | Seed capital and other funds | ||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||||
Redemption notice period | 180 days | [1] | 180 days | [1] |
[1] | Other funds include various leveraged loans, hedge funds and structured credit funds. Redemption notice periods vary by fund. | |||
[2] | Includes investments and unfunded commitments related to SBICs, which are compliant with the Volcker Rule, of $24 million and $56 million, respectively, at March 31, 2015 and $18 million and $45 million, respectively, at Dec. 31, 2014. | |||
[3] | Private equity funds primarily include numerous venture capital funds that invest in various sectors of the economy. Private equity funds do not have redemption rights. Distributions from such funds will be received as the underlying investments in the funds are liquidated. |
Other_Assets_Additional_Inform
Other Assets - Additional Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Other Assets [Abstract] | |||
Amortization method qualified affordable housing projects investments | $828 | $853 | |
Qualified affordable housing project investments, commitment | 339 | 358 | |
Qualified affordable housing project commitment - 2015 | 135 | ||
Qualified affordable housing project commitment - 2016 | 110 | ||
Qualified affordable housing project commitment - 2017 | 82 | ||
Qualified affordable housing project commitment - 2018 | 2 | ||
Qualified affordable housing project commitment - 2019 | 1 | ||
Qualified affordable housing project commitment - 2020 and thereafter | 9 | ||
Affordable housing tax credits and other tax benefits, amount | 33 | 34 | 31 |
Qualified affordable housing project investments, amortization | $24 | $26 | $24 |
Net_Interest_Revenue_Detail
Net Interest Revenue (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Interest revenue | |||
Non-margin loans | $173 | $178 | $169 |
Margin loans | 50 | 48 | 42 |
Securities: | |||
Taxable | 439 | 417 | 405 |
Exempt from federal income taxes | 22 | 22 | 27 |
Total securities | 461 | 439 | 432 |
Deposits with banks | 30 | 30 | 73 |
Deposits with the Federal Reserve and other central banks | 45 | 55 | 46 |
Federal funds sold and securities purchased under resale agreements | 30 | 26 | 17 |
Trading assets | 18 | 26 | 33 |
Total interest revenue | 807 | 802 | 812 |
Interest expense | |||
Deposits | 15 | 13 | 22 |
Federal funds purchased and securities sold under repurchase agreements | -3 | -2 | -4 |
Trading liabilities | 2 | 4 | 8 |
Other borrowed funds | 2 | 2 | 1 |
Commercial paper | 0 | 1 | 0 |
Customer payables | 2 | 3 | 2 |
Long-term debt | 61 | 69 | 55 |
Total interest expense | 79 | 90 | 84 |
Net interest revenue | $728 | $712 | $728 |
Employee_Benefit_Plans_Net_Per
Employee Benefit Plans - Net Periodic Benefit Cost (Credit) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Domestic Pension Benefits | ||
Components of net periodic benefit cost (credit): | ||
Service cost | $15 | $14 |
Interest cost | 43 | 45 |
Expected return on assets | -83 | -79 |
Curtailment (gain)/loss | -30 | 0 |
Other | 31 | 28 |
Net periodic benefit cost (credit) | -24 | 8 |
Foreign Pension Benefits | ||
Components of net periodic benefit cost (credit): | ||
Service cost | 8 | 9 |
Interest cost | 10 | 11 |
Expected return on assets | -13 | -15 |
Curtailment (gain)/loss | 0 | 0 |
Other | 6 | 4 |
Net periodic benefit cost (credit) | 11 | 9 |
Health care benefits | ||
Components of net periodic benefit cost (credit): | ||
Service cost | 1 | 1 |
Interest cost | 2 | 3 |
Expected return on assets | -2 | -2 |
Curtailment (gain)/loss | 0 | 0 |
Other | 0 | 0 |
Net periodic benefit cost (credit) | $1 | $2 |
Restructuring_Charges_Addition
Restructuring Charges- Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 36 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2014 | Apr. 01, 2014 |
position | |||||
Streamlining Actions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Net additional charges (net recovery/gain) | ($2) | $6 | |||
Restructuring reserve | 65 | 92 | 92 | 125 | |
Operational Efficiency Initiatives 2011 | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Net additional charges (net recovery/gain) | -2 | -6 | 36 | ||
Restructuring reserve | 22 | 28 | 107 | 28 | |
Estimated reduction in workforce due to restructuring (positions) | 1,500 | ||||
Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Net additional charges (net recovery/gain) | -4 | ||||
Severance | Operational Efficiency Initiatives 2011 | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Net additional charges (net recovery/gain) | -2 | 93 | |||
Restructuring reserve | 22 | 28 | 78 | 28 | |
Other | Operational Efficiency Initiatives 2011 | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Net additional charges (net recovery/gain) | 0 | -57 | |||
Restructuring reserve | $0 | $0 | $29 | $0 |
Restructuring_Charges_Activity
Restructuring Charges- Activity in Restructuring Reserve (Detail) (USD $) | 3 Months Ended | 36 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Net additional charges (net recovery/gain) | ($4) | |||
Operational Efficiency Initiatives 2011 | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 28 | 107 | ||
Net additional charges (net recovery/gain) | -2 | -6 | 36 | |
Utilization | -4 | -115 | ||
Ending balance | 22 | 28 | 28 | 28 |
Operational Efficiency Initiatives 2011 | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 28 | 78 | ||
Net additional charges (net recovery/gain) | -2 | 93 | ||
Utilization | -4 | -143 | ||
Ending balance | 22 | 28 | 28 | 28 |
Operational Efficiency Initiatives 2011 | Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | 29 | ||
Net additional charges (net recovery/gain) | 0 | -57 | ||
Utilization | 0 | 28 | ||
Ending balance | 0 | 0 | 0 | 0 |
Streamlining Actions | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 92 | 125 | ||
Net additional charges | -2 | 59 | ||
Net additional charges (net recovery/gain) | -2 | 6 | ||
Utilization | -25 | -92 | ||
Ending balance | $65 | $92 | $92 | $92 |
Restructuring_Charges_by_Busin
Restructuring Charges- by Business Segment (Detail) (USD $) | 3 Months Ended | 36 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 |
Streamlining Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Net additional charges (net recovery/gain) | ($2) | $6 | |
Total charges since inception | 182 | ||
Streamlining Actions | Investment Management | |||
Restructuring Cost and Reserve [Line Items] | |||
Net additional charges (net recovery/gain) | 0 | 1 | |
Total charges since inception | 23 | ||
Streamlining Actions | Investment Services | |||
Restructuring Cost and Reserve [Line Items] | |||
Net additional charges (net recovery/gain) | 2 | -16 | |
Total charges since inception | 85 | ||
Streamlining Actions | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Net additional charges (net recovery/gain) | -4 | 21 | |
Total charges since inception | 74 | ||
Operational Efficiency Initiatives 2011 | |||
Restructuring Cost and Reserve [Line Items] | |||
Net additional charges (net recovery/gain) | -2 | -6 | 36 |
Total charges since inception | 141 | ||
Operational Efficiency Initiatives 2011 | Investment Management | |||
Restructuring Cost and Reserve [Line Items] | |||
Net additional charges (net recovery/gain) | 0 | 1 | |
Total charges since inception | 51 | ||
Operational Efficiency Initiatives 2011 | Investment Services | |||
Restructuring Cost and Reserve [Line Items] | |||
Net additional charges (net recovery/gain) | 0 | -2 | |
Total charges since inception | 84 | ||
Operational Efficiency Initiatives 2011 | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Net additional charges (net recovery/gain) | -2 | -5 | |
Total charges since inception | $6 |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $280 | ($93) | $232 | |
Effective tax rate (percent) | 24.40% | 25.10% | ||
Tax reserves | 673 | 669 | ||
Impact on tax expense if tax reserves were unnecessary | 673 | |||
Accrued interest, related to income taxes in the balance sheet | 200 | |||
Additional tax expense related to interest | 1 | 1 | ||
Reasonably possible decrease in uncertain tax positions within the next 12 months, if a re-evaluation is required | 38 | |||
Tax Litigation | 593 | |||
Estimated additional income tax expense, litigation contingency | $100 |
Securitizations_and_Variable_I2
Securitizations and Variable Interest Entities- Incremental Assets and Liabilities of Variable Interest Entities Included in Consolidated Financial Statements (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
investment | ||||
Variable Interest Entity [Line Items] | ||||
Number of securitizations assessed for consolidation (investments) | 1 | |||
VIE classification of carrying amount, assets | $809 | $855 | ||
VIE classification of carrying amount, liabilities | 142 | 148 | ||
Noncontrolling interest in VIE | 479 | 544 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Available-for-sale | 400 | 414 | ||
Trading assets | 7,852 | 8,678 | ||
Other assets | 573 | 604 | ||
Subtotal assets of consolidated investment management funds, at fair value | 8,825 | 9,696 | ||
Trading liabilities | 6,584 | 7,660 | ||
Other liabilities | 391 | 372 | ||
Subtotal liabilities of consolidated investment management funds, at fair value | 6,975 | 8,032 | ||
Nonredeemable noncontrolling interests of consolidated investment management funds | 1,337 | 1,033 | ||
Variable Interest Entity, Primary Beneficiary | Investment Management funds | ||||
Variable Interest Entity [Line Items] | ||||
Available-for-sale | 0 | 0 | ||
Trading assets | 7,852 | 8,678 | ||
Other assets | 573 | 604 | ||
Subtotal assets of consolidated investment management funds, at fair value | 8,425 | [1] | 9,282 | [2] |
Trading liabilities | 6,584 | 7,660 | ||
Other liabilities | 36 | 9 | ||
Subtotal liabilities of consolidated investment management funds, at fair value | 6,620 | [1] | 7,669 | [2] |
Nonredeemable noncontrolling interests of consolidated investment management funds | 1,337 | [1] | 1,033 | [2] |
Variable Interest Entity, Primary Beneficiary | Securitizations | ||||
Variable Interest Entity [Line Items] | ||||
Available-for-sale | 400 | 414 | ||
Trading assets | 0 | 0 | ||
Other assets | 0 | 0 | ||
Subtotal assets of consolidated investment management funds, at fair value | 400 | 414 | ||
Trading liabilities | 0 | 0 | ||
Other liabilities | 355 | 363 | ||
Subtotal liabilities of consolidated investment management funds, at fair value | 355 | 363 | ||
Nonredeemable noncontrolling interests of consolidated investment management funds | $0 | $0 | ||
[1] | Includes voting interest entities with assets of $809 million, liabilities of $142 million and nonredeemable noncontrolling interests of $479 million. | |||
[2] | Includes voting interest entities with assets of $855 million, liabilities of $148 million and nonredeemable noncontrolling interests of $544 million. |
Securitizations_and_Variable_I3
Securitizations and Variable Interest Entities- Non-consolidated Variable Interest Entities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other Assets and Liabilities, Net | ||
Variable Interest Entity [Line Items] | ||
Assets | $119 | $148 |
Liabilities | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Maximum loss exposure | $119 | $148 |
Preferred_Stock_Additional_Inf
Preferred Stock - Additional Information (Detail) (USD $) | 0 Months Ended | |||
Mar. 20, 2015 | Mar. 05, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 | ||
Preferred stock, par value (usd per share) | $0.01 | $0.01 | ||
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Dividend paid per share (usd per share) | $977.78 | |||
Preferred stock, dividend rate per normal preferred capital security (usd per share) | $9.78 | |||
Dividends payable, date of record | 5-Mar-15 | |||
Preferred stock dividend payment date | 20-Mar-15 | |||
Depository share, portion of preferred stock share (percent) | 1.00% | |||
Series C Noncumulative Perpetual Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Dividend paid per share (usd per share) | $1,300 | |||
Preferred stock, dividend rate per depository share (usd per share) | $0.33 | |||
Dividends payable, date of record | 5-Mar-15 | |||
Preferred stock dividend payment date | 20-Mar-15 | |||
Depository share, portion of preferred stock share (percent) | 0.03% |
Preferred_Stock_Preferred_Stoc
Preferred Stock Preferred Stock Summary (Details) (USD $) | 3 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Class of Stock [Line Items] | ||||
Total shares issued and outstanding (shares) | 15,826 | 15,826 | ||
Carrying value | $1,562 | [1] | $1,562 | [1] |
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Per annum dividend rate | Greater of (i) three-month LIBOR plus 0.565% for the related distribution period; or (ii) 4.000% | |||
Per annum dividend rate (percent) | 4.00% | |||
Liquidation preference per share (usd per share) | $100,000 | |||
Total shares issued and outstanding (shares) | 5,001 | 5,001 | ||
Carrying value | 500 | [1] | 500 | [1] |
Series C Noncumulative Perpetual Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Per annum dividend rate (percent) | 5.20% | |||
Liquidation preference per share (usd per share) | $100,000 | |||
Total shares issued and outstanding (shares) | 5,825 | 5,825 | ||
Carrying value | 568 | [1] | 568 | [1] |
Preferred stock redemption period following regulatory capital treatment event | 90 days | |||
Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Per annum dividend rate | 4.50% commencing Dec. 20, 2013 to but excluding June 20, 2023, then a floating rate equal to the three-month LIBOR plus 2.46% | |||
Per annum dividend rate (percent) | 4.50% | |||
Liquidation preference per share (usd per share) | $100,000 | |||
Total shares issued and outstanding (shares) | 5,000 | 5,000 | ||
Carrying value | $494 | [1] | $494 | [1] |
Preferred stock redemption period following regulatory capital treatment event | 90 days | |||
LIBOR | Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, basis spread on variable rate (percent) | 0.57% | |||
LIBOR | Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, basis spread on variable rate (percent) | 2.46% | |||
[1] | The carrying value of the Series C and Series D preferred stock is recorded net of issuance costs. |
Other_Comprehensive_Income_Los2
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |||
Foreign currency translation adjustments: | ||||||
Foreign currency translation adjustments arising during the period | ($615) | ($283) | $24 | |||
Unrealized gain (loss) on assets available-for-sale: | ||||||
Unrealized gain (loss) arising during period | 202 | 63 | 250 | |||
Reclassification adjustment | -24 | [1] | -31 | [1] | -22 | [1] |
Net unrealized gain (loss) on assets available-for-sale | 178 | 32 | 228 | |||
Defined benefit plans: | ||||||
Prior service cost arising during the period | 0 | 3 | 0 | |||
Net gain (loss) arising during the period | -185 | -766 | 0 | |||
Foreign exchange adjustment | 0 | -2 | 0 | |||
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost | 7 | [1] | 35 | [1] | 30 | [1] |
Total defined benefit plans | -178 | -730 | 30 | |||
Unrealized gain (loss) on cash flow hedges: | ||||||
Unrealized hedge gain (loss) arising during period | 2 | 5 | 6 | |||
Reclassification adjustment | -3 | [1] | -7 | [1] | -4 | [1] |
Net unrealized gain (loss) on cash flow hedges | -1 | -2 | 2 | |||
Total other comprehensive income (loss) | -616 | -983 | 284 | |||
Foreign currency translation: | ||||||
Foreign currency translation adjustments arising during the period | -98 | -48 | 13 | |||
Unrealized gain (loss) on assets available-for-sale: | ||||||
Unrealized gain (loss) arising during period | -68 | -26 | -88 | |||
Reclassification adjustment | 9 | [1] | 13 | [1] | 9 | [1] |
Net unrealized gain (loss) on assets available-for-sale | -59 | -13 | -79 | |||
Defined benefit plans: | ||||||
Prior service cost arising during the period | 0 | -1 | 0 | |||
Net gain (loss) arising during the period | 76 | 287 | 0 | |||
Foreign exchange adjustment | 0 | 1 | 0 | |||
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost | -2 | [1] | -13 | [1] | -11 | [1] |
Total defined benefit plans | 74 | 274 | -11 | |||
Unrealized gain (loss) on cash flow hedges: | ||||||
Unrealized hedge gain (loss) arising during period | 5 | -4 | 0 | |||
Reclassification adjustment | -5 | [1] | 4 | [1] | -1 | [1] |
Net unrealized gain (loss) on cash flow hedges | 0 | 0 | -1 | |||
Total other comprehensive income (loss) | -83 | 213 | -78 | |||
Foreign currency translation: | ||||||
Foreign currency translation adjustments arising during the period | -713 | -331 | 37 | |||
Unrealized gain (loss) on assets available-for-sale: | ||||||
Unrealized gain (loss) arising during period | 134 | 37 | 162 | |||
Reclassification adjustment | -15 | [1] | -18 | [1] | -13 | [1] |
Total unrealized gain (loss) on assets available-for-sale | 119 | 19 | 149 | |||
Defined benefit plans: | ||||||
Prior service cost arising during the period | 0 | 2 | 0 | |||
Net gain (loss) arising during the period | -109 | -479 | 0 | |||
Foreign exchange adjustment | 0 | -1 | 0 | |||
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost | 5 | [1] | 22 | [1] | 19 | [1] |
Total defined benefit plans | -104 | -456 | 19 | |||
Unrealized gain (loss) on cash flow hedges: | ||||||
Unrealized hedge gain (loss) arising during period | 7 | 1 | 6 | |||
Reclassification adjustment | -8 | [1] | -3 | [1] | -5 | [1] |
Net unrealized gain on cash flow hedges | -1 | -2 | 1 | |||
Total other comprehensive income (loss), net of tax | ($699) | [2] | ($770) | [2] | $206 | [2] |
[1] | The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the Consolidated Income Statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the Consolidated Income Statement. See Note 16 of the Notes to Consolidated Financial Statements for the location of the reclassification adjustment related to cash flow hedges on the Consolidated Income Statement. | |||||
[2] | Other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders was $(548) million for the quarter ended March 31, 2015, $(718) million for the quarter ended Dec. 31, 2014 and $203 million for the quarter ended March 31, 2014. |
Fair_Value_Measurement_Additio
Fair Value Measurement- Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
broker | |
Qualitative Disclosures Related to Fair Value Measurements [Line Items] | |
Number of inter-dealer brokers providing pricing quotes for actively traded agency RMBS (major inter-dealer brokers) | 3 |
Percentage of our securities valued by pricing sources with reasonable levels of price transparency (more than 99 percent) (percent) | 99.00% |
Number of business days in which overdrafts are generally repaid | 2 days |
Commercial paper maturity period | 397 days |
Maximum | |
Qualitative Disclosures Related to Fair Value Measurements [Line Items] | |
Percentage of our securities priced based on economic models and non-binding dealer quotes (less than 1 percent) (percent) | 1.00% |
Percentage of interest rate swaps where pricing using standard pricing models is adjusted based on additional analysis and judgment (percent) | 1.00% |
Fair_Value_MeasurementAssets_a
Fair Value Measurement-Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | $6,187 | $5,721 | ||
Loans | 73 | 53 | ||
Derivative liabilities | 4,780 | 4,756 | ||
Fair Value, Measurements, Recurring | Sovereign debt/sovereign guaranteed | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 15,243 | [1] | 17,284 | [1] |
Fair Value, Measurements, Recurring | Non-agency RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 920 | [1] | 953 | [1] |
Fair Value, Measurements, Recurring | Foreign covered bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 2,808 | [1] | 2,868 | [1] |
Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Subtotal assets of consolidated investment management funds, at fair value | 24,322 | 26,259 | ||
Percentage of assets prior to netting (percent) | 19.00% | 19.00% | ||
Fair value of liabilities | 475 | 422 | ||
Percentage of liabilities prior to netting (percent) | 1.00% | 1.00% | ||
Fair Value, Measurements, Recurring | Level 1 | Securities available-for-sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 21,786 | 23,145 | ||
Fair Value, Measurements, Recurring | Level 1 | Securities available-for-sale | U.S. Treasury | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 18,586 | 19,997 | ||
Fair Value, Measurements, Recurring | Level 1 | Securities available-for-sale | Sovereign debt/sovereign guaranteed | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 40 | 40 | ||
Fair Value, Measurements, Recurring | Level 1 | Securities available-for-sale | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 92 | 95 | ||
Fair Value, Measurements, Recurring | Level 1 | Securities available-for-sale | Money market funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 730 | [2] | 763 | [2] |
Fair Value, Measurements, Recurring | Level 1 | Securities available-for-sale | Foreign covered bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 2,338 | 2,250 | ||
Fair Value, Measurements, Recurring | Level 1 | Trading Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Debt and equity instruments | 1,579 | [2] | 2,204 | [2] |
Trading assets | 1,670 | 2,307 | ||
Fair Value, Measurements, Recurring | Level 1 | Other Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Other assets | 234 | [3] | 250 | [3] |
Percentage of assets prior to netting (percent) | 20.00% | |||
Fair Value, Measurements, Recurring | Level 1 | Operations | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Subtotal assets of consolidated investment management funds, at fair value | 23,690 | 25,702 | ||
Percentage of assets prior to netting (percent) | 20.00% | |||
Fair Value, Measurements, Recurring | Level 1 | Investment Management funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Trading assets | 170 | 100 | ||
Other assets | 462 | 457 | ||
Subtotal assets of consolidated investment management funds, at fair value | 632 | 557 | ||
Trading liabilities | 0 | |||
Other liabilities | 27 | 1 | ||
Fair value of liabilities | 27 | 1 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Loans | 140 | 21 | ||
Other assets | 897 | [3] | 745 | [3] |
Subtotal assets of consolidated investment management funds, at fair value | 101,491 | 111,428 | ||
Percentage of assets prior to netting (percent) | 81.00% | 81.00% | ||
Fair value of liabilities | 31,447 | 33,267 | ||
Percentage of liabilities prior to netting (percent) | 99.00% | 99.00% | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 65,920 | 75,174 | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | U.S. Government agencies | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 385 | 343 | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | Sovereign debt/sovereign guaranteed | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 15,203 | 17,244 | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | State and political subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 5,128 | [2] | 5,236 | [2] |
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | Agency RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 25,183 | 32,600 | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | Non-agency RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 920 | 953 | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | Other RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,386 | 1,551 | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | Commercial MBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,851 | 1,959 | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | Agency commercial MBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 3,785 | 3,132 | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | Asset-backed CLOs | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 2,258 | 2,130 | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | Other asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 3,400 | 3,240 | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,745 | 1,785 | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | Other debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 2,068 | 2,169 | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | Foreign covered bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 470 | 618 | ||
Fair Value, Measurements, Recurring | Level 2 | Securities available-for-sale | Grantor Trust Residential Mortgage Backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 2,138 | [4] | 2,214 | [4] |
Fair Value, Measurements, Recurring | Level 2 | Trading Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Debt and equity instruments | 2,288 | [2] | 2,217 | [2] |
Trading assets | 25,703 | 25,912 | ||
Fair Value, Measurements, Recurring | Level 2 | Other Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Other assets | 1,935 | 1,596 | ||
Percentage of assets prior to netting (percent) | 80.00% | |||
Fair Value, Measurements, Recurring | Level 2 | Operations | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Subtotal assets of consolidated investment management funds, at fair value | 93,698 | 102,703 | ||
Percentage of assets prior to netting (percent) | 80.00% | |||
Fair Value, Measurements, Recurring | Level 2 | Investment Management funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Trading assets | 7,682 | 8,578 | ||
Other assets | 111 | 147 | ||
Subtotal assets of consolidated investment management funds, at fair value | 7,793 | 8,725 | ||
Trading liabilities | 6,584 | 7,660 | ||
Other liabilities | 9 | 8 | ||
Fair value of liabilities | 6,593 | 7,668 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Subtotal assets of consolidated investment management funds, at fair value | 71 | 90 | ||
Fair value of liabilities | 6 | 9 | ||
Percentage of liabilities prior to netting (percent) | 0.00% | |||
Fair Value, Measurements, Recurring | Level 3 | Securities available-for-sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 11 | 11 | ||
Fair Value, Measurements, Recurring | Level 3 | Securities available-for-sale | State and political subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 11 | [2] | 11 | [2] |
Fair Value, Measurements, Recurring | Level 3 | Trading Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Debt and equity instruments | 0 | [2] | ||
Trading assets | 6 | 9 | ||
Fair Value, Measurements, Recurring | Level 3 | Other Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Other assets | 54 | [3] | 70 | [3] |
Fair Value, Measurements, Recurring | Level 3 | Operations | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Subtotal assets of consolidated investment management funds, at fair value | 71 | 90 | ||
Nondesignated | Fair Value, Measurements, Recurring | Level 1 | Trading Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 91 | 103 | ||
Nondesignated | Fair Value, Measurements, Recurring | Level 1 | Trading Assets | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 27 | 7 | ||
Nondesignated | Fair Value, Measurements, Recurring | Level 1 | Trading Assets | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 64 | 96 | ||
Nondesignated | Fair Value, Measurements, Recurring | Level 2 | Trading Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 23,415 | 23,695 | ||
Nondesignated | Fair Value, Measurements, Recurring | Level 2 | Trading Assets | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 17,024 | 17,137 | ||
Nondesignated | Fair Value, Measurements, Recurring | Level 2 | Trading Assets | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 6,199 | 6,280 | ||
Nondesignated | Fair Value, Measurements, Recurring | Level 2 | Trading Assets | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 192 | 278 | ||
Nondesignated | Fair Value, Measurements, Recurring | Level 3 | Trading Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 6 | 9 | ||
Nondesignated | Fair Value, Measurements, Recurring | Level 3 | Trading Assets | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 3 | 6 | ||
Nondesignated | Fair Value, Measurements, Recurring | Level 3 | Trading Assets | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 0 | |||
Nondesignated | Fair Value, Measurements, Recurring | Level 3 | Trading Assets | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 3 | 3 | ||
Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 2 | Other Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 1,038 | 851 | ||
Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 2 | Other Assets | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 574 | 477 | ||
Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 2 | Other Assets | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 464 | 374 | ||
Parent Company | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Other liabilities | 4 | |||
Total other liabilities - derivative liabilities designated as hedging | 0 | 4 | ||
Fair value of liabilities | 448 | 421 | ||
Percentage of liabilities prior to netting (percent) | 2.00% | 2.00% | ||
Parent Company | Fair Value, Measurements, Recurring | Level 1 | Trading Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Debt and equity instruments | 412 | 367 | ||
Derivative liabilities | 50 | |||
Trading liabilities | 448 | 417 | ||
Parent Company | Fair Value, Measurements, Recurring | Level 1 | Trading Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 3 | |||
Parent Company | Fair Value, Measurements, Recurring | Level 1 | Trading Liabilities | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 47 | |||
Parent Company | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Long-term debt | 355 | [2] | 347 | [2] |
Total other liabilities - derivative liabilities designated as hedging | 612 | 447 | ||
Fair value of liabilities | 24,854 | 25,599 | ||
Percentage of liabilities prior to netting (percent) | 98.00% | 98.00% | ||
Parent Company | Fair Value, Measurements, Recurring | Level 2 | Trading Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Debt and equity instruments | 235 | 294 | ||
Derivative liabilities | 24,511 | |||
Trading liabilities | 23,887 | 24,805 | ||
Parent Company | Fair Value, Measurements, Recurring | Level 2 | Trading Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 17,645 | |||
Parent Company | Fair Value, Measurements, Recurring | Level 2 | Trading Liabilities | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 6,367 | |||
Parent Company | Fair Value, Measurements, Recurring | Level 2 | Trading Liabilities | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 499 | |||
Parent Company | Fair Value, Measurements, Recurring | Level 2 | Other Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 447 | |||
Parent Company | Fair Value, Measurements, Recurring | Level 2 | Other Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 385 | |||
Parent Company | Fair Value, Measurements, Recurring | Level 2 | Other Liabilities | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 62 | |||
Parent Company | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Fair value of liabilities | 6 | 9 | ||
Percentage of liabilities prior to netting (percent) | 0.00% | |||
Parent Company | Fair Value, Measurements, Recurring | Level 3 | Trading Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 9 | |||
Trading liabilities | 6 | 9 | ||
Parent Company | Fair Value, Measurements, Recurring | Level 3 | Trading Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 6 | |||
Parent Company | Fair Value, Measurements, Recurring | Level 3 | Trading Liabilities | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 3 | |||
Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Level 1 | Trading Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 36 | |||
Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Level 1 | Trading Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 8 | |||
Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Level 1 | Trading Liabilities | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 28 | |||
Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Level 2 | Trading Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 23,652 | |||
Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Level 2 | Trading Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 17,225 | |||
Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Level 2 | Trading Liabilities | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 6,073 | |||
Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Level 2 | Trading Liabilities | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 354 | |||
Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Level 3 | Trading Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 6 | |||
Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Level 3 | Trading Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 3 | |||
Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Level 3 | Trading Liabilities | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 3 | |||
Parent Company | Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 2 | Other Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 553 | |||
Parent Company | Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 2 | Other Liabilities | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 59 | |||
Carrying Amount | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Loans | 59,906 | 56,749 | ||
Other assets | 8,240 | 8,091 | ||
Subtotal assets of consolidated investment management funds, at fair value | 246,292 | 222,252 | ||
Long-term debt | 20,046 | 19,917 | ||
Carrying Amount | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Loans | 140 | 21 | ||
Other assets | 1,185 | [3] | 1,065 | [3] |
Subtotal assets of consolidated investment management funds, at fair value | 108,010 | 119,430 | ||
Fair value of liabilities | 14,929 | 15,901 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 87,717 | 98,330 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | U.S. Treasury | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 18,586 | 19,997 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | U.S. Government agencies | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 385 | 343 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Sovereign debt/sovereign guaranteed | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 15,243 | 17,284 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | State and political subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 5,139 | [2] | 5,247 | [2] |
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Agency RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 25,183 | 32,600 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Non-agency RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 920 | 953 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Other RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,386 | 1,551 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Commercial MBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,851 | 1,959 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Agency commercial MBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 3,785 | 3,132 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Asset-backed CLOs | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 2,258 | 2,130 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Other asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 3,400 | 3,240 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 92 | 95 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Money market funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 730 | [2] | 763 | [2] |
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,745 | 1,785 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Other debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 2,068 | 2,169 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Foreign covered bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 2,808 | 2,868 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Securities available-for-sale | Grantor Trust Residential Mortgage Backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 2,138 | [4] | 2,214 | [4] |
Carrying Amount | Fair Value, Measurements, Recurring | Trading Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Debt and equity instruments | 3,867 | [2] | 4,421 | [2] |
Trading assets | 9,505 | 9,881 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Other Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Other assets | 2,223 | 1,916 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Operations | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Subtotal assets of consolidated investment management funds, at fair value | 99,585 | 110,148 | ||
Carrying Amount | Fair Value, Measurements, Recurring | Investment Management funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Trading assets | 7,852 | 8,678 | ||
Other assets | 573 | 604 | ||
Subtotal assets of consolidated investment management funds, at fair value | 8,425 | 9,282 | ||
Trading liabilities | 6,584 | 7,660 | ||
Other liabilities | 36 | 9 | ||
Fair value of liabilities | 6,620 | 7,669 | ||
Carrying Amount | Nondesignated | Fair Value, Measurements, Recurring | Trading Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 5,638 | 5,460 | ||
Carrying Amount | Nondesignated | Fair Value, Measurements, Recurring | Trading Assets | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 3,689 | 3,208 | ||
Carrying Amount | Nondesignated | Fair Value, Measurements, Recurring | Trading Assets | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 1,808 | 2,034 | ||
Carrying Amount | Nondesignated | Fair Value, Measurements, Recurring | Trading Assets | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 141 | 218 | ||
Carrying Amount | Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Other Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 1,038 | 851 | ||
Carrying Amount | Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Other Assets | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 574 | 477 | ||
Carrying Amount | Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Other Assets | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | 464 | 374 | ||
Carrying Amount | Parent Company | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Long-term debt | 355 | [2] | 347 | [2] |
Total other liabilities - derivative liabilities designated as hedging | 612 | 451 | ||
Fair value of liabilities | 8,309 | 8,232 | ||
Carrying Amount | Parent Company | Fair Value, Measurements, Recurring | Trading Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Debt and equity instruments | 647 | 661 | ||
Derivative liabilities | 6,773 | |||
Trading liabilities | 7,342 | 7,434 | ||
Carrying Amount | Parent Company | Fair Value, Measurements, Recurring | Trading Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 3,187 | |||
Carrying Amount | Parent Company | Fair Value, Measurements, Recurring | Trading Liabilities | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 3,218 | |||
Carrying Amount | Parent Company | Fair Value, Measurements, Recurring | Trading Liabilities | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 368 | |||
Carrying Amount | Parent Company | Fair Value, Measurements, Recurring | Other Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 447 | |||
Carrying Amount | Parent Company | Fair Value, Measurements, Recurring | Other Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 385 | |||
Carrying Amount | Parent Company | Fair Value, Measurements, Recurring | Other Liabilities | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 62 | |||
Carrying Amount | Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Trading Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 6,695 | |||
Carrying Amount | Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Trading Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 3,400 | |||
Carrying Amount | Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Trading Liabilities | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 3,029 | |||
Carrying Amount | Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Trading Liabilities | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 266 | |||
Carrying Amount | Parent Company | Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Other Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 553 | |||
Carrying Amount | Parent Company | Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Other Liabilities | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | 59 | |||
Netting | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Subtotal assets of consolidated investment management funds, at fair value | -17,874 | [5] | -18,347 | [5] |
Fair value of liabilities | -16,999 | [5] | -17,797 | [5] |
Netting | Fair Value, Measurements, Recurring | Trading Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Trading assets | -17,874 | [5] | -18,347 | [5] |
Netting | Fair Value, Measurements, Recurring | Operations | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Subtotal assets of consolidated investment management funds, at fair value | -17,874 | [5] | -18,347 | [5] |
Netting | Nondesignated | Fair Value, Measurements, Recurring | Trading Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | -17,874 | [5] | -18,347 | [5] |
Netting | Nondesignated | Fair Value, Measurements, Recurring | Trading Assets | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | -13,365 | [5] | -13,942 | [5] |
Netting | Nondesignated | Fair Value, Measurements, Recurring | Trading Assets | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | -4,391 | [5] | -4,246 | [5] |
Netting | Nondesignated | Fair Value, Measurements, Recurring | Trading Assets | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative assets | -118 | [5] | -159 | [5] |
Netting | Parent Company | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Fair value of liabilities | -16,999 | [5] | -17,797 | [5] |
Netting | Parent Company | Fair Value, Measurements, Recurring | Trading Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | -17,797 | [5] | ||
Trading liabilities | -16,999 | [5] | -17,797 | [5] |
Netting | Parent Company | Fair Value, Measurements, Recurring | Trading Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | -14,467 | [5] | ||
Netting | Parent Company | Fair Value, Measurements, Recurring | Trading Liabilities | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | -3,149 | [5] | ||
Netting | Parent Company | Fair Value, Measurements, Recurring | Trading Liabilities | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | -181 | [5] | ||
Netting | Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Trading Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | -16,999 | [5] | ||
Netting | Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Trading Liabilities | Interest rate contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | -13,836 | [5] | ||
Netting | Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Trading Liabilities | Foreign exchange contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | -3,044 | [5] | ||
Netting | Parent Company | Nondesignated | Fair Value, Measurements, Recurring | Trading Liabilities | Equity contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liabilities | ($119) | [5] | ||
[1] | At March 31, 2015 and Dec. 31, 2014, foreign covered bonds and sovereign debt were included in Level 1 and Level 2 in the valuation hierarchy. All other assets in the table are Level 2 assets in the valuation hierarchy. | |||
[2] | Includes certain interests in securitizations. | |||
[3] | Includes private equity investments and seed capital. | |||
[4] | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. | |||
[5] | ASC 815 permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities, and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product. |
Fair_Value_Measurement_Details
Fair Value Measurement- Details of Certain Items Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Non-agency RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | $920 | [1] | $953 | [1] |
Non-agency RMBS | 2007 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 76 | [1] | 78 | [1] |
Non-agency RMBS | 2006 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 134 | [1] | 138 | [1] |
Non-agency RMBS | 2005 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 276 | [1] | 284 | [1] |
Non-agency RMBS | 2004 and earlier | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 434 | [1] | 453 | [1] |
Commercial MBS | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,784 | [1] | 1,887 | [1] |
Commercial MBS | 2009-2015 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 686 | [1] | 639 | [1] |
Commercial MBS | 2008 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 19 | [1] | 19 | [1] |
Commercial MBS | 2007 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 349 | [1] | 353 | [1] |
Commercial MBS | 2006 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 545 | [1] | 599 | [1] |
Commercial MBS | 2005 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 179 | [1] | 271 | [1] |
Commercial MBS | 2004 and earlier | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 6 | [1] | 6 | [1] |
Foreign covered bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 2,808 | [1] | 2,868 | [1] |
Foreign covered bonds | Canada | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,394 | [1] | 1,266 | [1] |
Foreign covered bonds | United Kingdom | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 604 | [1] | 690 | [1] |
Foreign covered bonds | Netherlands | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 215 | [1] | 244 | [1] |
Foreign covered bonds | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 595 | [1] | 668 | [1] |
Sovereign debt/sovereign guaranteed | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 15,243 | [1] | 17,284 | [1] |
Sovereign debt/sovereign guaranteed | United Kingdom | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 2,858 | [1] | 5,076 | [1] |
Sovereign debt/sovereign guaranteed | France | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 4,252 | [1] | 3,550 | [1] |
Sovereign debt/sovereign guaranteed | Netherlands | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,237 | [1] | 1,800 | [1] |
Sovereign debt/sovereign guaranteed | BELGIUM | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,058 | [1] | 829 | [1] |
Sovereign debt/sovereign guaranteed | Ireland | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 802 | [1] | 672 | [1] |
Sovereign debt/sovereign guaranteed | Spain | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,817 | [1] | 1,978 | [1] |
Sovereign debt/sovereign guaranteed | Germany | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,548 | [1] | 1,522 | [1] |
Sovereign debt/sovereign guaranteed | Italy | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,252 | [1] | 1,427 | [1] |
Sovereign debt/sovereign guaranteed | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 419 | [1] | 430 | [1] |
Alt-A RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 2,138 | [1],[2] | 2,214 | [1],[2] |
Alt-A RMBS | 2007 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 599 | [1],[2] | 620 | [1],[2] |
Alt-A RMBS | 2006 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 627 | [1],[2] | 653 | [1],[2] |
Alt-A RMBS | 2005 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 706 | [1],[2] | 727 | [1],[2] |
Alt-A RMBS | 2004 and earlier | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 206 | [1],[2] | 214 | [1],[2] |
Securities available-for-sale | European floating rate notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,452 | [1] | 1,637 | [1] |
Securities available-for-sale | European floating rate notes | United Kingdom | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 1,052 | [1] | 1,172 | [1] |
Securities available-for-sale | European floating rate notes | Netherlands | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 250 | [1] | 296 | [1] |
Securities available-for-sale | European floating rate notes | Ireland | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | 129 | [1] | 144 | [1] |
Securities available-for-sale | European floating rate notes | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available-for-sale | $21 | [1] | $25 | [1] |
Ratings, AAA/AA- | Non-agency RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 1.00% | 1.00% | ||
Ratings, AAA/AA- | Non-agency RMBS | 2004 and earlier | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 3.00% | 3.00% | ||
Ratings, AAA/AA- | Commercial MBS | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 81.00% | 82.00% | ||
Ratings, AAA/AA- | Commercial MBS | 2009-2015 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 84.00% | 83.00% | ||
Ratings, AAA/AA- | Commercial MBS | 2008 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Commercial MBS | 2007 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 65.00% | 65.00% | ||
Ratings, AAA/AA- | Commercial MBS | 2006 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 82.00% | 83.00% | ||
Ratings, AAA/AA- | Commercial MBS | 2005 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Commercial MBS | 2004 and earlier | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Foreign covered bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Foreign covered bonds | Canada | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Foreign covered bonds | United Kingdom | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Foreign covered bonds | Netherlands | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Foreign covered bonds | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Sovereign debt/sovereign guaranteed | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 74.00% | 76.00% | ||
Ratings, AAA/AA- | Sovereign debt/sovereign guaranteed | United Kingdom | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Sovereign debt/sovereign guaranteed | France | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Sovereign debt/sovereign guaranteed | Netherlands | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Sovereign debt/sovereign guaranteed | BELGIUM | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Sovereign debt/sovereign guaranteed | Germany | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Sovereign debt/sovereign guaranteed | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 83.00% | 81.00% | ||
Ratings, AAA/AA- | Securities available-for-sale | European floating rate notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 79.00% | 79.00% | ||
Ratings, AAA/AA- | Securities available-for-sale | European floating rate notes | United Kingdom | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 83.00% | 83.00% | ||
Ratings, AAA/AA- | Securities available-for-sale | European floating rate notes | Netherlands | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, AAA/AA- | Securities available-for-sale | European floating rate notes | Ireland | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 0.00% | |||
Ratings, AAA/AA- | Securities available-for-sale | European floating rate notes | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 99.00% | ||
Ratings, A+/A- | Non-agency RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 8.00% | 9.00% | ||
Ratings, A+/A- | Non-agency RMBS | 2005 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 21.00% | 21.00% | ||
Ratings, A+/A- | Non-agency RMBS | 2004 and earlier | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 5.00% | 5.00% | ||
Ratings, A+/A- | Commercial MBS | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 16.00% | 15.00% | ||
Ratings, A+/A- | Commercial MBS | 2009-2015 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 16.00% | 17.00% | ||
Ratings, A+/A- | Commercial MBS | 2008 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 0.00% | |||
Ratings, A+/A- | Commercial MBS | 2007 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 21.00% | 21.00% | ||
Ratings, A+/A- | Commercial MBS | 2006 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 18.00% | 17.00% | ||
Ratings, A+/A- | Commercial MBS | 2004 and earlier | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 0.00% | |||
Ratings, A+/A- | Sovereign debt/sovereign guaranteed | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 1.00% | |||
Ratings, A+/A- | Sovereign debt/sovereign guaranteed | Ireland | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 17.00% | |||
Ratings, A+/A- | Alt-A RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 1.00% | [2] | 1.00% | [2] |
Ratings, A+/A- | Alt-A RMBS | 2005 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 3.00% | [2] | 3.00% | [2] |
Ratings, A+/A- | Alt-A RMBS | 2004 and earlier | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 4.00% | [2] | 4.00% | [2] |
Ratings, A+/A- | Securities available-for-sale | European floating rate notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 12.00% | 12.00% | ||
Ratings, A+/A- | Securities available-for-sale | European floating rate notes | United Kingdom | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 17.00% | 17.00% | ||
Ratings, A+/A- | Securities available-for-sale | European floating rate notes | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 0.00% | 1.00% | ||
Ratings, BBB+/BBB- | Non-agency RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 19.00% | 19.00% | ||
Ratings, BBB+/BBB- | Non-agency RMBS | 2007 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 0.00% | |||
Ratings, BBB+/BBB- | Non-agency RMBS | 2005 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 18.00% | 19.00% | ||
Ratings, BBB+/BBB- | Non-agency RMBS | 2004 and earlier | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 27.00% | 27.00% | ||
Ratings, BBB+/BBB- | Commercial MBS | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 3.00% | 3.00% | ||
Ratings, BBB+/BBB- | Commercial MBS | 2007 | Domestic | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 14.00% | 14.00% | ||
Ratings, BBB+/BBB- | Sovereign debt/sovereign guaranteed | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 25.00% | 24.00% | ||
Ratings, BBB+/BBB- | Sovereign debt/sovereign guaranteed | Ireland | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 83.00% | 100.00% | ||
Ratings, BBB+/BBB- | Sovereign debt/sovereign guaranteed | Spain | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, BBB+/BBB- | Sovereign debt/sovereign guaranteed | Italy | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, BBB+/BBB- | Sovereign debt/sovereign guaranteed | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 17.00% | 19.00% | ||
Ratings, BBB+/BBB- | Alt-A RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 1.00% | [2] | 1.00% | [2] |
Ratings, BBB+/BBB- | Alt-A RMBS | 2006 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 1.00% | [2] | 1.00% | [2] |
Ratings, BBB+/BBB- | Alt-A RMBS | 2005 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 1.00% | [2] | 1.00% | [2] |
Ratings, BBB+/BBB- | Alt-A RMBS | 2004 and earlier | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 7.00% | [2] | 7.00% | [2] |
Ratings, BB+ and lower | Non-agency RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 72.00% | 71.00% | ||
Ratings, BB+ and lower | Non-agency RMBS | 2007 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, BB+ and lower | Non-agency RMBS | 2006 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, BB+ and lower | Non-agency RMBS | 2005 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 61.00% | 60.00% | ||
Ratings, BB+ and lower | Non-agency RMBS | 2004 and earlier | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 65.00% | 65.00% | ||
Ratings, BB+ and lower | Alt-A RMBS | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 98.00% | [2] | 98.00% | [2] |
Ratings, BB+ and lower | Alt-A RMBS | 2007 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | [2] | 100.00% | [2] |
Ratings, BB+ and lower | Alt-A RMBS | 2006 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 99.00% | [2] | 99.00% | [2] |
Ratings, BB+ and lower | Alt-A RMBS | 2005 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 96.00% | [2] | 96.00% | [2] |
Ratings, BB+ and lower | Alt-A RMBS | 2004 and earlier | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 89.00% | [2] | 89.00% | [2] |
Ratings, BB+ and lower | Securities available-for-sale | European floating rate notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 9.00% | 9.00% | ||
Ratings, BB+ and lower | Securities available-for-sale | European floating rate notes | Ireland | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 100.00% | 100.00% | ||
Ratings, BB+ and lower | Securities available-for-sale | European floating rate notes | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Percentage Of Fair Value (percent) | 0.00% | |||
[1] | At March 31, 2015 and Dec. 31, 2014, foreign covered bonds and sovereign debt were included in Level 1 and Level 2 in the valuation hierarchy. All other assets in the table are Level 2 assets in the valuation hierarchy. | |||
[2] | Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. |
Fair_Value_Measurement_Signifi
Fair Value Measurement- Significant Unobservable Inputs (Detail) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | ||
Fair value measurements for assets using significant unobservable inputs | |||||
Transfers out of Level 3 | ($1) | ||||
Included in earnings (or changes in net assets) | 0 | ||||
Derivative assets | |||||
Fair value measurements for assets using significant unobservable inputs | |||||
Change in unrealized gains or (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period | -1 | [1] | |||
Other Assets | |||||
Fair value measurements for assets using significant unobservable inputs | |||||
Beginning balance | 105 | 70 | |||
Included in earnings (or changes in net assets) | 2 | [2] | -2 | [2] | |
Purchases | 8 | 7 | |||
Sales | -5 | -21 | |||
Ending balance | 110 | 54 | |||
Total Assets | |||||
Fair value measurements for assets using significant unobservable inputs | |||||
Beginning balance | 139 | 90 | |||
Included in earnings (or changes in net assets) | -3 | ||||
Purchases | 8 | 7 | |||
Sales | -5 | -21 | |||
Settlements | -2 | ||||
Ending balance | 141 | 71 | |||
Change in unrealized gains or (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period | -2 | -1 | |||
Total liabilities | |||||
Fair value measurements for liabilities using significant unobservable inputs | |||||
Beginning balance | 75 | 9 | |||
Transfers out of Level 3 | -37 | ||||
Included in earnings (or changes in net liabilities) | 3 | -1 | |||
Settlements | -2 | ||||
Ending balance | 41 | 6 | |||
Change in unrealized (gains) or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period | 3 | 1 | |||
Securities available-for-sale | State and political subdivisions | |||||
Fair value measurements for assets using significant unobservable inputs | |||||
Beginning balance | 11 | 11 | |||
Included in earnings (or changes in net assets) | 0 | [3] | |||
Ending balance | 11 | 11 | 11 | ||
Trading Assets | Debt and equity instruments | |||||
Fair value measurements for assets using significant unobservable inputs | |||||
Beginning balance | 1 | ||||
Included in earnings (or changes in net assets) | 0 | [4] | |||
Sales | 0 | ||||
Ending balance | 1 | ||||
Trading Assets | Derivative assets | |||||
Fair value measurements for assets using significant unobservable inputs | |||||
Beginning balance | 22 | [1] | 9 | [1] | |
Transfers out of Level 3 | -1 | [1] | |||
Included in earnings (or changes in net assets) | -2 | [1],[4] | -1 | [1],[4] | |
Settlements | -2 | [1] | |||
Ending balance | 19 | [1] | 6 | [1] | |
Change in unrealized gains or (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period | -2 | [1] | |||
Trading Liabilities | Derivative liabilities | |||||
Fair value measurements for liabilities using significant unobservable inputs | |||||
Beginning balance | 75 | [5] | 9 | [5] | |
Transfers out of Level 3 | -37 | [5] | |||
Included in earnings (or changes in net liabilities) | 3 | [4],[5] | -1 | [4],[5] | |
Settlements | -2 | [5] | |||
Ending balance | 41 | [5] | 6 | [5] | |
Change in unrealized (gains) or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period | $3 | [5] | $1 | [5] | |
[1] | Derivative assets are reported on a gross basis. | ||||
[2] | Reported in investment and other income. | ||||
[3] | Realized gains (losses) are reported in securities gains (losses). Unrealized gains (losses) are reported in accumulated other comprehensive income (loss) except for the credit portion of OTTI losses which are recorded in securities gains (losses). | ||||
[4] | Reported in foreign exchange and other trading revenue. | ||||
[5] | Derivative liabilities are reported on a gross basis. |
Fair_Value_Measurement_Assets_
Fair Value Measurement- Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans | $73 | $53 | ||
Change in fair value of loans of underlying collateral | 1 | -3 | ||
Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans | 110 | [1] | 114 | [1] |
Other assets | 7 | [2] | 6 | [2] |
Subtotal assets of consolidated investment management funds, at fair value | 117 | 120 | ||
Level 2 | Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans | 108 | [1] | 112 | [1] |
Other assets | 7 | [2] | 6 | [2] |
Subtotal assets of consolidated investment management funds, at fair value | 115 | 118 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans | 2 | [1] | 2 | [1] |
Subtotal assets of consolidated investment management funds, at fair value | $2 | $2 | ||
[1] | During the quarters ended March 31, 2015 and Dec. 31, 2014, the fair value of these loans increased less than $1 million and decreased $3 million, respectively, based on the fair value of the underlying collateral as allowed by ASC 310, Accounting by Creditors for Impairment of a loan, with an offset to the allowance for credit losses. | |||
[2] | Includes other assets received in satisfaction of debt and loans held for sale. Loans held for sale are carried on the balance sheet at the lower of cost or fair value. |
Fair_Value_Measurement_Quantit
Fair Value Measurement- Quantitative Information about Level 3 Fair Value Measurements of Assets (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of assets | $71 | $90 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of assets | 117 | 120 | |
Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of assets | 2 | 2 | |
Securities available-for-sale | Fair Value, Measurements, Recurring | Level 3 | State and political subdivisions | Discounted Cash Flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of assets | 11 | ||
Fair value inputs, expected credit loss (percent) | 1.00% | ||
Trading Securities | Fair Value, Measurements, Recurring | Level 3 | Structured Foreign Exchange Swaptions | Option Pricing Model | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Correlation risk (percent) | 0.00% | [1] | |
Volatility (percent) | 13.00% | ||
Trading Securities | Fair Value, Measurements, Recurring | Level 3 | Structured Foreign Exchange Swaptions | Option Pricing Model | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Correlation risk (percent) | 25.00% | [1] | |
Volatility (percent) | 15.00% | ||
Trading Securities | Fair Value, Measurements, Recurring | Level 3 | Long-Term Foreign Exchange Options | Option Pricing Model | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of assets | 3 | [1] | |
Trading Securities | Fair Value, Measurements, Recurring | Level 3 | Equity Options | Option Pricing Model | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of assets | 3 | [1] | |
Trading Securities | Fair Value, Measurements, Recurring | Level 3 | Equity Options | Option Pricing Model | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Volatility (percent) | 21.00% | [1] | |
Trading Securities | Fair Value, Measurements, Recurring | Level 3 | Equity Options | Option Pricing Model | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Volatility (percent) | 22.00% | [1] | |
Loans Receivable | Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Cap rate (percent) | 8.00% | ||
Loans Receivable | Fair Value, Measurements, Nonrecurring | Level 3 | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Timing of sale (months) | 0 months | ||
Loans Receivable | Fair Value, Measurements, Nonrecurring | Level 3 | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Timing of sale (months) | 15 months | ||
Loans Receivable | Fair Value, Measurements, Nonrecurring | Level 3 | Discounted Cash Flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of assets | $2 | ||
Loans Receivable | Fair Value, Measurements, Nonrecurring | Level 3 | Discounted Cash Flow | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Cost to complete/sell (percent) | 0.00% | ||
Loans Receivable | Fair Value, Measurements, Nonrecurring | Level 3 | Discounted Cash Flow | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Cost to complete/sell (percent) | 260.00% | ||
[1] | The option pricing model uses market inputs such as foreign currency exchange rates, interest rates and volatility to calculate the fair value of the option. |
Fair_Value_Measurement_Quantit1
Fair Value Measurement- Quantitative Information about Level 3 Fair Value Measurements of Liabilities (Detail) (Fair Value, Measurements, Recurring, Level 3, USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair value of liabilities | 6 | $9 | |
Trading Liabilities | Structured Foreign Exchange Swaptions | Option Pricing Model | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair value of liabilities | 3 | [1] | |
Trading Liabilities | Structured Foreign Exchange Swaptions | Option Pricing Model | Minimum | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Correlation risk (percent) | 0.00% | [1] | |
Volatility (percent) | 13.00% | ||
Trading Liabilities | Structured Foreign Exchange Swaptions | Option Pricing Model | Maximum | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Correlation risk (percent) | 25.00% | [1] | |
Volatility (percent) | 15.00% | ||
Trading Liabilities | Equity Options | Option Pricing Model | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair value of liabilities | 3 | [1] | |
Trading Liabilities | Equity Options | Option Pricing Model | Minimum | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Volatility (percent) | 21.00% | [1] | |
Trading Liabilities | Equity Options | Option Pricing Model | Maximum | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Volatility (percent) | 22.00% | [1] | |
[1] | The option pricing model uses market inputs such as foreign currency exchange rates, interest rates and volatility to calculate the fair value of the option. |
Fair_Value_Measurement_Carryin
Fair Value Measurement- Carrying Amount and Fair Value of Financial Instruments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Assets: | ||
Loans | $73 | $53 |
Estimated Fair Value | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 89,704 | 96,682 |
Interest-bearing deposits with banks | 18,947 | 19,505 |
Federal funds sold and securities purchased under resale agreements | 28,268 | 20,302 |
Securities held-to-maturity | 41,676 | 21,127 |
Loans | 60,088 | 56,840 |
Other financial assets | 8,240 | 8,091 |
Subtotal assets of consolidated investment management funds, at fair value | 246,923 | 222,547 |
Liabilities: | ||
Noninterest-bearing deposits | 111,622 | 104,240 |
Interest-bearing deposits | 168,831 | 160,688 |
Federal funds purchased and securities sold under repurchase agreements | 7,919 | 11,469 |
Payables to customers and broker-dealers | 21,959 | 21,181 |
Borrowings | 984 | 956 |
Long-term debt | 20,711 | 20,401 |
Total liabilities | 332,026 | 318,935 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Securities held-to-maturity | 10,462 | 5,063 |
Other financial assets | 7,167 | 6,970 |
Subtotal assets of consolidated investment management funds, at fair value | 17,629 | 12,033 |
Estimated Fair Value | Level 2 | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 89,704 | 96,682 |
Interest-bearing deposits with banks | 18,947 | 19,505 |
Federal funds sold and securities purchased under resale agreements | 28,268 | 20,302 |
Securities held-to-maturity | 31,214 | 16,064 |
Loans | 60,088 | 56,840 |
Other financial assets | 1,073 | 1,121 |
Subtotal assets of consolidated investment management funds, at fair value | 229,294 | 210,514 |
Liabilities: | ||
Noninterest-bearing deposits | 111,622 | 104,240 |
Interest-bearing deposits | 168,831 | 160,688 |
Federal funds purchased and securities sold under repurchase agreements | 7,919 | 11,469 |
Payables to customers and broker-dealers | 21,959 | 21,181 |
Borrowings | 984 | 956 |
Long-term debt | 20,711 | 20,401 |
Total liabilities | 332,026 | 318,935 |
Carrying Amount | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 89,704 | 96,682 |
Interest-bearing deposits with banks | 18,937 | 19,495 |
Federal funds sold and securities purchased under resale agreements | 28,268 | 20,302 |
Securities held-to-maturity | 41,237 | 20,933 |
Loans | 59,906 | 56,749 |
Other financial assets | 8,240 | 8,091 |
Subtotal assets of consolidated investment management funds, at fair value | 246,292 | 222,252 |
Liabilities: | ||
Noninterest-bearing deposits | 111,622 | 104,240 |
Interest-bearing deposits | 169,637 | 161,629 |
Federal funds purchased and securities sold under repurchase agreements | 7,919 | 11,469 |
Payables to customers and broker-dealers | 21,959 | 21,181 |
Borrowings | 984 | 956 |
Long-term debt | 20,046 | 19,917 |
Total liabilities | $332,167 | $319,392 |
Fair_Value_Measurement_Summary
Fair Value Measurement- Summary of Carrying Amount of Hedged Financial Instruments, Related Notional Amount of Hedge and Estimated Fair Value of Derivatives (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Securities available-for-sale | ||
Derivative [Line Items] | ||
Carrying amount | $7,233 | $7,294 |
Notional amount of hedge | 6,966 | 7,045 |
Unrealized Gain | 4 | 4 |
Unrealized (Loss) | -539 | -370 |
Long-term debt | ||
Derivative [Line Items] | ||
Carrying amount | 16,623 | 16,469 |
Notional amount of hedge | 16,100 | 16,100 |
Unrealized Gain | 568 | 470 |
Unrealized (Loss) | ($14) | ($14) |
Fair_Value_Option_Assets_and_L
Fair Value Option- Assets and Liabilities, by Type, of Consolidated Investment Management Funds Recorded at Fair Value (Detail) (Investment Management funds, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Investment Management funds | ||
Assets of consolidated investment management funds: | ||
Trading assets | $7,852 | $8,678 |
Other assets | 573 | 604 |
Subtotal assets of consolidated investment management funds, at fair value | 8,425 | 9,282 |
Liabilities of consolidated investment management funds: | ||
Trading liabilities | 6,584 | 7,660 |
Other liabilities | 36 | 9 |
Subtotal liabilities of consolidated investment management funds, at fair value | $6,620 | $7,669 |
Fair_Value_Option_Changes_in_F
Fair Value Option- Changes in Fair Value of the Loans and Long-Term Debt and the Location of the Changes (Detail) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |||
Investment and other income | Loans Receivable | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Changes in the fair value of long-term debt | $2 | [1] | $0 | [1] | $0 | [1] |
Foreign exchange and other trading revenue | Long-term debt | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Changes in the fair value of long-term debt | ($8) | [1] | ($10) | [1] | ($8) | [1] |
[1] | (a)The changes in fair value of the loans and long-term debt are approximately offset by economic hedges included in investment and other income and foreign exchange and other trading revenue. |
Fair_Value_Option_Additional_I
Fair Value Option- Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Long-term debt, carrying amount | $240 | |
Operations | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans Held-for-sale, Fair Value Disclosure | 140 | 21 |
Long-term debt, fair value | 355 | 347 |
Level 2 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans receivable, carrying amount | 138 | 21 |
Loans Held-for-sale, Fair Value Disclosure | $140 | $21 |
Derivative_Instruments_Additio
Derivative Instruments- Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Derivative, loss on derivative | $1,000,000 | $0 | |
Non-derivative financial instruments designated as hedges of net investments in foreign subsidiaries were all long-term liabilities of BNY Mellon in various currencies | 497,000,000 | ||
Value-at-risk methodology assumed holding period for instruments (in days) | 1 day | ||
Value-at-risk methodology confidence level percentage (percent) | 99.00% | ||
Additional collateral the Company would have to post for existing collateral arrangements, if the company's debt rating had fallen below investment grade | 354,000,000 | ||
Securities available-for-sale | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Hedged financial instruments | 6,800,000,000 | ||
Hedged financial instruments, notional amount of derivative | 6,966,000,000 | 7,045,000,000 | |
Long-term debt | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Hedged financial instruments | 16,100,000,000 | ||
Hedged financial instruments, notional amount of derivative | 16,100,000,000 | 16,100,000,000 | |
Interest Rate Swap | Securities available-for-sale | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Original maturities, maximum (in years) of hedged instruments | 30 years | ||
Hedged financial instruments, notional amount of derivative | 7,000,000,000 | ||
Interest Rate Swap | Long-term debt | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Original maturities, minimum (in years) of hedged instruments | 5 years | ||
Original maturities, maximum (in years) of hedged instruments | 30 years | ||
Hedged financial instruments, notional amount of derivative | 16,100,000,000 | ||
Foreign exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Notional amount of derivatives that will mature within one year | 587,000,000,000 | ||
Notional amount of derivatives that will mature between one and five years | 8,000,000,000 | ||
Notional amount of derivatives that will mature after 5 years | 6,000,000,000 | ||
Interest rate contracts | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Notional amount of derivatives that will mature within one year | 263,000,000,000 | ||
Notional amount of derivatives that will mature between one and five years | 244,000,000,000 | ||
Notional amount of derivatives that will mature after 5 years | 206,000,000,000 | ||
Cash flow hedges | Foreign exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Hedged financial instruments, notional amount of derivative | 276,000,000 | ||
Pretax loss recorded in accumulated other comprehensive income | 13,000,000 | ||
Hedging derivatives, maturities, maximum (in months or in years) | 9 months | ||
Cash flow hedges | Foreign exchange contracts | Fair Value Hedge | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Hedged financial instruments, notional amount of derivative | 150,000,000 | ||
Hedging derivatives, maturities, maximum (in months or in years) | 9 months | ||
Cash flow hedges | Foreign exchange contracts | Fair Value Hedge | Maximum | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Pretax loss recorded in accumulated other comprehensive income | 1,000,000 | ||
Net Investment Hedging | Foreign exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Hedged financial instruments, notional amount of derivative | $6,900,000,000 | ||
Hedging derivatives, maturities, maximum (in months or in years) | 2 years |
Derivative_Instruments_Ineffec
Derivative Instruments- Ineffectiveness Related to Derivatives and Hedging Relationships Recorded in Income (Detail) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Ineffectiveness related to derivatives and hedging relationships | ($2.30) | ($15.50) | ($7.70) | |||
Fair value hedges of securities | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Ineffectiveness related to derivatives and hedging relationships | 1.4 | -12.9 | -4.9 | |||
Fair value hedges of deposits and long-term debt | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Ineffectiveness related to derivatives and hedging relationships | -3.7 | -2.6 | -2.8 | |||
Cash flow hedges | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Ineffectiveness related to derivatives and hedging relationships | 0 | 0 | 0.1 | |||
Other | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Ineffectiveness related to derivatives and hedging relationships | $0 | [1] | $0 | [1] | ($0.10) | [1] |
[1] | Includes ineffectiveness recorded on foreign exchange hedges. |
Derivative_Instruments_Impact_
Derivative Instruments- Impact of Derivative Instruments on Balance Sheet (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives fair value | $24,550 | [1] | $24,658 | [1] |
Asset derivatives fair value, effect of master netting agreements | -17,874 | [2],[3] | -18,347 | [2],[3] |
Derivative assets after impact of netting arrangements, net assets recognized on the balance sheet | 6,676 | 6,311 | ||
Liability derivatives fair value | 24,306 | [1] | 25,017 | [1] |
Liability derivatives fair value, effect of master netting agreements | -16,999 | [3],[4] | -17,797 | [3],[4] |
Derivative liability after impact of netting arrangements, net liabilities recognized on the balance sheet | 7,307 | 7,220 | ||
Master netting agreements, cash collateral received | 1,591 | 1,589 | ||
Master netting agreements, cash collateral paid | 716 | 1,039 | ||
Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives fair value | 1,038 | [5] | 851 | [5] |
Liability derivatives fair value | 612 | [5] | 447 | [5] |
Designated as Hedging Instrument | Interest rate contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional value | 23,066 | [5] | 23,145 | [5] |
Asset derivatives fair value | 574 | [5] | 477 | [5] |
Liability derivatives fair value | 553 | [5] | 385 | [5] |
Designated as Hedging Instrument | Foreign exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional value | 7,309 | [5] | 7,344 | [5] |
Asset derivatives fair value | 464 | [5] | 374 | [5] |
Liability derivatives fair value | 59 | [5] | 62 | [5] |
Nondesignated | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives fair value | 23,512 | [6] | 23,807 | [6] |
Liability derivatives fair value | 23,694 | [6] | 24,570 | [6] |
Nondesignated | Interest rate contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional value | 689,734 | [6] | 731,628 | [6] |
Asset derivatives fair value | 17,054 | [6] | 17,150 | [6] |
Liability derivatives fair value | 17,236 | [6] | 17,654 | [6] |
Nondesignated | Foreign exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional value | 593,662 | [6] | 528,401 | [6] |
Asset derivatives fair value | 6,199 | [6] | 6,280 | [6] |
Liability derivatives fair value | 6,073 | [6] | 6,367 | [6] |
Nondesignated | Equity contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional value | 6,820 | [6] | 10,842 | [6] |
Asset derivatives fair value | 259 | [6] | 377 | [6] |
Liability derivatives fair value | $385 | [6] | $549 | [6] |
[1] | Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815. | |||
[2] | Includes the effect of netting agreements and net cash collateral received. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions. | |||
[3] | aster netting agreements includes cash collateral received and paid of $1,591 million and $716 million, respectively, at March 31, 2015, and $1,589 million and $1,039 million, respectively, at Dec. 31, 2014. | |||
[4] | Includes the effect of netting agreements and net cash collateral paid. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions. | |||
[5] | The fair value of asset derivatives and liability derivatives designated as hedging instruments is recorded as other assets and other liabilities, respectively, on the balance sheet. | |||
[6] | The fair value of asset derivatives and liability derivatives not designated as hedging instruments is recorded as trading assets and trading liabilities, respectively, on the balance sheet. |
Derivative_Instruments_Impact_1
Derivative Instruments- Impact of Derivative Instruments on Income Statement (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Fair Value Hedging | Interest rate contracts | Net interest revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized in income on derivatives | ($151) | ($327) | ($285) |
Gain or (loss) recognized in hedged item | 149 | 312 | 277 |
Cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized in accumulated OCI on derivatives(effective portion) | 2 | 4 | 6 |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | 3 | 7 | 4 |
Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | 0 | 0 | 0.1 |
Cash flow hedges | Foreign exchange contracts | Net interest revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized in accumulated OCI on derivatives(effective portion) | -1 | 0 | -1 |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | -1 | 0 | -1 |
Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | 0 | 0 | 0 |
Cash flow hedges | Foreign exchange contracts | Other revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized in accumulated OCI on derivatives(effective portion) | 0 | -4 | 3 |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | 0 | -5 | 0 |
Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | 0 | 0 | 0.1 |
Cash flow hedges | Foreign exchange contracts | Trading revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized in accumulated OCI on derivatives(effective portion) | 12 | 10 | 3 |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | 12 | 10 | 3 |
Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | 0 | 0 | 0 |
Cash flow hedges | Foreign exchange contracts | Salary expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized in accumulated OCI on derivatives(effective portion) | -9 | -2 | 1 |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | -8 | 2 | 2 |
Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | 0 | 0 | 0 |
Net Investment Hedging | Foreign exchange contracts | Net interest revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized in accumulated OCI on derivatives(effective portion) | 368 | -530 | -16 |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | 0 | 0 | 0 |
Net Investment Hedging | Foreign exchange contracts | Other revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | $0 | $0 | ($0.10) |
Derivative_Instruments_Revenue
Derivative Instruments- Revenue from Foreign Exchange and Other Trading (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Trading Activity, Gains and Losses, Net [Line Items] | |||
Foreign exchange | $217 | $165 | $130 |
Other trading revenue | 12 | -14 | 6 |
Total foreign exchange and other trading revenue | 229 | 151 | 136 |
Fixed Income | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Other trading revenue | 11 | -18 | 1 |
Credit Derivatives/Other | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Other trading revenue | $1 | $4 | $5 |
Derivative_Instruments_Fair_Va
Derivative Instruments- Fair Value of Derivative Contracts Falling under Early Termination Provisions in Net Liability Position (Detail) (USD $) | Mar. 31, 2015 | |
In Millions, unless otherwise specified | ||
A- | ||
Credit Derivatives [Line Items] | ||
Potential close-out exposures (fair value) | $146 | [1] |
BBB | ||
Credit Derivatives [Line Items] | ||
Potential close-out exposures (fair value) | 1,338 | [1] |
BB plus | ||
Credit Derivatives [Line Items] | ||
Potential close-out exposures (fair value) | 3,014 | [1] |
A3 | ||
Credit Derivatives [Line Items] | ||
Potential close-out exposures (fair value) | 146 | [1] |
Baa2 | ||
Credit Derivatives [Line Items] | ||
Potential close-out exposures (fair value) | 1,338 | [1] |
Ba1 | ||
Credit Derivatives [Line Items] | ||
Potential close-out exposures (fair value) | $3,014 | [1] |
[1] | The amounts represent potential total close-out values if The Bank of New York Mellon’s rating were to immediately drop to the indicated levels. |
Derivative_Instruments_Offsett
Derivative Instruments- Offsetting (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Derivative Asset [Abstract] | ||||
Asset derivatives fair value | $24,550 | [1] | $24,658 | [1] |
Derivative assets subject to netting arrangements, gross amounts offset in the balance sheet | 17,874 | [2],[3] | 18,347 | [2],[3] |
Derivative assets after impact of netting arrangements, net assets recognized on the balance sheet | 6,676 | 6,311 | ||
Derivative assets subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 489 | 590 | ||
Derivative assets subject to collateral agreements, gross amounts not offset in the balance sheet cash collateral received | 0 | 0 | ||
Derivative assets after impact of netting arrangements and collateral agreements, net amount | 6,187 | 5,721 | ||
Total derivatives not subject to netting arrangements | 4,064 | 3,607 | ||
Reverse repurchase agreements, gross assets recognized | 20,750 | 11,634 | ||
Reverse repurchase agreements subject to netting arrangements, gross amounts offset in the balance sheet | 2,020 | [2],[4] | 434 | [2],[4] |
Reverse repurchase agreements after impact of netting arrangements, net assets recognized on the balance sheet | 18,730 | 11,200 | ||
Reverse repurchase agreements subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 18,728 | 11,198 | ||
Reverse repurchase agreements subject to collateral agreements, gross amounts not offset in the balance sheet, cash collateral received | 0 | 0 | ||
Reverse repurchase agreements, net amount | 2 | 2 | ||
Securities borrowing, gross assets recognized | 9,252 | 9,033 | ||
Securities borrowing after impact of netting arrangements, net assets recognized on the balance sheet | 9,252 | 9,033 | ||
Securities borrowing subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 8,952 | 8,733 | ||
Securities borrowing after impact of netting arrangements and collateral agreements, net amount | 300 | 300 | ||
Fair value of financial and derivative assets, gross assets recognized | 54,552 | 45,325 | ||
Fair value of financial and derivative assets subject to netting arrangements, gross amounts offset in the balance sheet | 19,894 | [2] | 18,781 | [2] |
Fair value of financial and derivative assets after impact of netting arrangements, net assets recognized on the balance sheet | 34,658 | 26,544 | ||
Fair value of financial and derivative assets subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 28,169 | 20,521 | ||
Fair value of financial and derivative assets subject to collateral agreements, gross amounts not offset in the balance sheet, cash collateral received | 0 | 0 | ||
Fair value of financial and derivative assets after impact of netting arrangements and collateral agreements, net amount | 6,489 | 6,023 | ||
Derivative Liability [Abstract] | ||||
Liability derivatives fair value | 24,306 | [1] | 25,017 | [1] |
Derivative liabilities subject to netting arrangements, gross amounts offset in the balance sheet | 16,999 | [3],[5] | 17,797 | [3],[5] |
Derivative liability after impact of netting arrangements, net liabilities recognized on the balance sheet | 7,307 | 7,220 | ||
Derivative liabilities subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 2,527 | 2,464 | ||
Derivative liabilities subject to collateral agreements, gross amounts not offset in the balance sheet, cash collateral pledged | 0 | 0 | ||
Derivative liabilities after impact of netting arrangements and collateral agreements, net amount | 4,780 | 4,756 | ||
Total derivatives not subject to netting arrangements | 3,779 | 3,411 | ||
Repurchase agreements, gross liabilities recognized | 7,743 | 9,160 | ||
Repurchase agreements subject to netting arrangements, gross amounts offset in the balance sheet | 2,020 | [5],[6] | 434 | [5],[6] |
Repurchase agreements after impact of netting arrangements, net liabilities recognized on the balance sheet | 5,723 | 8,726 | ||
Repurchase agreements subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 5,721 | 8,722 | ||
Repurchase agreements subject to collateral agreements, gross amounts not offset in the balance sheet, cash collateral pledged | 0 | 0 | ||
Repurchase agreements, net amount | 2 | 4 | ||
Securities lending, gross liabilities recognized | 2,142 | 2,571 | ||
Securities lending after impact of netting arrangements, net liabilities recognized on the balance sheet | 2,142 | 2,571 | ||
Securities lending subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 2,061 | 2,494 | ||
Securities lending after impact of netting arrangements and collateral agreements, net amount | 81 | 77 | ||
Fair value of financial and derivative liabilities, gross liabilities recognized | 34,191 | 36,748 | ||
Fair value of financial and derivative liabilities subject to netting arrangements, gross amounts offset in the balance sheet | 19,019 | [5] | 18,231 | [5] |
Fair value of financial and derivative liabilities after impact netting arrangements, net liabilities recognized on the balance sheet | 15,172 | 18,517 | ||
Fair value of financial and derivative liabilities subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 10,309 | 13,680 | ||
Fair value of financial and derivative liabilities subject to collateral agreements, gross amounts not offset in the balance sheet, cash collateral pledged | 0 | 0 | ||
Fair value of financial and derivative liabilities after impact of netting arrangements and collateral agreements, net amount | 4,863 | 4,837 | ||
Derivatives subject to netting arrangements: | ||||
Derivative Asset [Abstract] | ||||
Asset derivatives fair value | 20,486 | 21,051 | ||
Derivative assets subject to netting arrangements, gross amounts offset in the balance sheet | 17,874 | [2] | 18,347 | [2] |
Derivative assets after impact of netting arrangements, net assets recognized on the balance sheet | 2,612 | 2,704 | ||
Derivative assets subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 489 | 590 | ||
Derivative assets subject to collateral agreements, gross amounts not offset in the balance sheet cash collateral received | 0 | 0 | ||
Derivative assets after impact of netting arrangements and collateral agreements, net amount | 2,123 | 2,114 | ||
Derivative Liability [Abstract] | ||||
Liability derivatives fair value | 20,527 | 21,606 | ||
Derivative liabilities subject to netting arrangements, gross amounts offset in the balance sheet | 16,999 | [5] | 17,797 | [5] |
Derivative liability after impact of netting arrangements, net liabilities recognized on the balance sheet | 3,528 | 3,809 | ||
Derivative liabilities subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 2,527 | 2,464 | ||
Derivative liabilities subject to collateral agreements, gross amounts not offset in the balance sheet, cash collateral pledged | 0 | 0 | ||
Derivative liabilities after impact of netting arrangements and collateral agreements, net amount | 1,001 | 1,345 | ||
Interest rate contracts | Derivatives subject to netting arrangements: | ||||
Derivative Asset [Abstract] | ||||
Asset derivatives fair value | 15,004 | 15,457 | ||
Derivative assets subject to netting arrangements, gross amounts offset in the balance sheet | 13,365 | [2] | 13,942 | [2] |
Derivative assets after impact of netting arrangements, net assets recognized on the balance sheet | 1,639 | 1,515 | ||
Derivative assets subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 399 | 408 | ||
Derivative assets subject to collateral agreements, gross amounts not offset in the balance sheet cash collateral received | 0 | 0 | ||
Derivative assets after impact of netting arrangements and collateral agreements, net amount | 1,240 | 1,107 | ||
Derivative Liability [Abstract] | ||||
Liability derivatives fair value | 16,238 | 16,884 | ||
Derivative liabilities subject to netting arrangements, gross amounts offset in the balance sheet | 13,836 | [5] | 14,467 | [5] |
Derivative liability after impact of netting arrangements, net liabilities recognized on the balance sheet | 2,402 | 2,417 | ||
Derivative liabilities subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 2,069 | 1,815 | ||
Derivative liabilities subject to collateral agreements, gross amounts not offset in the balance sheet, cash collateral pledged | 0 | 0 | ||
Derivative liabilities after impact of netting arrangements and collateral agreements, net amount | 333 | 602 | ||
Foreign exchange contracts | Derivatives subject to netting arrangements: | ||||
Derivative Asset [Abstract] | ||||
Asset derivatives fair value | 5,245 | 5,291 | ||
Derivative assets subject to netting arrangements, gross amounts offset in the balance sheet | 4,391 | [2] | 4,246 | [2] |
Derivative assets after impact of netting arrangements, net assets recognized on the balance sheet | 854 | 1,045 | ||
Derivative assets subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 90 | 176 | ||
Derivative assets subject to collateral agreements, gross amounts not offset in the balance sheet cash collateral received | 0 | 0 | ||
Derivative assets after impact of netting arrangements and collateral agreements, net amount | 764 | 869 | ||
Derivative Liability [Abstract] | ||||
Liability derivatives fair value | 3,954 | 4,241 | ||
Derivative liabilities subject to netting arrangements, gross amounts offset in the balance sheet | 3,044 | [5] | 3,149 | [5] |
Derivative liability after impact of netting arrangements, net liabilities recognized on the balance sheet | 910 | 1,092 | ||
Derivative liabilities subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 267 | 399 | ||
Derivative liabilities subject to collateral agreements, gross amounts not offset in the balance sheet, cash collateral pledged | 0 | 0 | ||
Derivative liabilities after impact of netting arrangements and collateral agreements, net amount | 643 | 693 | ||
Equity contracts | Derivatives subject to netting arrangements: | ||||
Derivative Asset [Abstract] | ||||
Asset derivatives fair value | 237 | 303 | ||
Derivative assets subject to netting arrangements, gross amounts offset in the balance sheet | 118 | [2] | 159 | [2] |
Derivative assets after impact of netting arrangements, net assets recognized on the balance sheet | 119 | 144 | ||
Derivative assets subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 0 | 6 | ||
Derivative assets subject to collateral agreements, gross amounts not offset in the balance sheet cash collateral received | 0 | 0 | ||
Derivative assets after impact of netting arrangements and collateral agreements, net amount | 119 | 138 | ||
Derivative Liability [Abstract] | ||||
Liability derivatives fair value | 335 | 481 | ||
Derivative liabilities subject to netting arrangements, gross amounts offset in the balance sheet | 119 | [5] | 181 | [5] |
Derivative liability after impact of netting arrangements, net liabilities recognized on the balance sheet | 216 | 300 | ||
Derivative liabilities subject to collateral agreements, gross amounts not offset in the balance sheet, financial instruments | 191 | 250 | ||
Derivative liabilities subject to collateral agreements, gross amounts not offset in the balance sheet, cash collateral pledged | 0 | 0 | ||
Derivative liabilities after impact of netting arrangements and collateral agreements, net amount | $25 | $50 | ||
[1] | Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815. | |||
[2] | Includes the effect of netting agreements and net cash collateral received. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions. | |||
[3] | aster netting agreements includes cash collateral received and paid of $1,591 million and $716 million, respectively, at March 31, 2015, and $1,589 million and $1,039 million, respectively, at Dec. 31, 2014. | |||
[4] | Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. | |||
[5] | Includes the effect of netting agreements and net cash collateral paid. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions. | |||
[6] | Offsetting of repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities- Significant Industry Concentrations Related to Credit Exposure (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loans | $62,326,000,000 | [1] | $59,132,000,000 | [1] |
Financial institutions | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loans | 14,667,000,000 | 13,319,000,000 | ||
Unfunded commitments | 16,000,000,000 | |||
Total exposure | 30,700,000,000 | |||
Financial institutions | Banks | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loans | 9,100,000,000 | |||
Unfunded commitments | 1,700,000,000 | |||
Total exposure | 10,800,000,000 | |||
Financial institutions | Asset managers | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loans | 1,700,000,000 | |||
Unfunded commitments | 5,100,000,000 | |||
Total exposure | 6,800,000,000 | |||
Financial institutions | Securities industry | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loans | 3,300,000,000 | |||
Unfunded commitments | 1,100,000,000 | |||
Total exposure | 4,400,000,000 | |||
Financial institutions | Insurance | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loans | 100,000,000 | |||
Unfunded commitments | 3,900,000,000 | |||
Total exposure | 4,000,000,000 | |||
Financial institutions | Government | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loans | 100,000,000 | |||
Unfunded commitments | 3,000,000,000 | |||
Total exposure | 3,100,000,000 | |||
Financial institutions | Other | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loans | 400,000,000 | |||
Unfunded commitments | 1,200,000,000 | |||
Total exposure | 1,600,000,000 | |||
Commercial | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loans | 1,971,000,000 | 1,642,000,000 | ||
Unfunded commitments | 18,700,000,000 | |||
Total exposure | 20,700,000,000 | |||
Commercial | Services and other | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loans | 800,000,000 | |||
Unfunded commitments | 6,000,000,000 | |||
Total exposure | 6,800,000,000 | |||
Commercial | Manufacturing | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loans | 400,000,000 | |||
Unfunded commitments | 5,700,000,000 | |||
Total exposure | 6,100,000,000 | |||
Commercial | Energy and utilities | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loans | 500,000,000 | |||
Unfunded commitments | 5,500,000,000 | |||
Total exposure | 6,000,000,000 | |||
Commercial | Media and telecom | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loans | 300,000,000 | |||
Unfunded commitments | 1,500,000,000 | |||
Total exposure | $1,800,000,000 | |||
[1] | Net of unearned income of $843 million at March 31, 2015 and $866 million at Dec. 31, 2014 primarily on domestic and foreign lease financings. |
Commitments_and_Contingent_Lia3
Commitments and Contingent Liabilities- Summary of Off-Balance Sheet Credit Risks, Net of Participations (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Securities lending indemnifications joint venture | $68,000,000,000 | $64,000,000,000 | ||
Lending commitments | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off balance sheet credit risk | 34,166,000,000 | 33,273,000,000 | ||
Standby letters of credit | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off balance sheet credit risk | 5,600,000,000 | [1] | 5,767,000,000 | [1] |
Off-balance sheet credit risks participations | 961,000,000 | 894,000,000 | ||
Commercial letters of credit | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off balance sheet credit risk | 264,000,000 | 255,000,000 | ||
Securities lending indemnifications | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off balance sheet credit risk | $310,273,000,000 | [2] | $304,386,000,000 | [2] |
[1] | Net of participations totaling $961 million at March 31, 2015 and $894 million at Dec. 31, 2014. | |||
[2] | Excludes the indemnification for securities for which BNY Mellon acts as an agent on behalf of CIBC Mellon clients, which totaled $68 billion at March 31, 2015 and $64 billion at Dec. 31, 2014. |
Commitments_and_Contingent_Lia4
Commitments and Contingent Liabilities- Standby Letters of Credits by Investment Grade (Detail) (Standby letters of credit) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Investment grade | ||
Concentration Risk [Line Items] | ||
Concentration risk (percent) | 86.00% | 88.00% |
Non-investment grade | ||
Concentration Risk [Line Items] | ||
Concentration risk (percent) | 14.00% | 12.00% |
Commitments_and_Contingent_Lia5
Commitments and Contingent Liabilities- Additional Information (Detail) | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||||||||
Mar. 19, 2015 | Mar. 31, 2015 | Mar. 02, 2015 | Dec. 31, 2014 | Nov. 03, 2014 | Jan. 18, 2008 | Mar. 19, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 19, 2015 | Mar. 19, 2015 | Mar. 19, 2015 | Mar. 19, 2015 | Apr. 15, 2015 | |||
USD ($) | USD ($) | LegalMatter | USD ($) | panel | USD ($) | Foreign Exchange Matters | Standby letters of credit | Standby letters of credit | Commercial letters of credit | Commercial letters of credit | Operations | Operations | DOJ and NYAG settlements | Class Action Settlement | DOL Settlement | SEC Penalty | Subsequent Event | |||
LegalMatter | LegalMatter | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | UK Financial Conduct Authority Matter | ||||||||
GBP (£) | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||||||||||||
Lending commitment maturing in less than one year | $11,300,000,000 | |||||||||||||||||||
Lending commitment maturing in one to five years | 22,600,000,000 | |||||||||||||||||||
Lending commitment maturing over five years | 252,000,000 | |||||||||||||||||||
SBLCs collateralized with cash and securities | 412,000,000 | 421,000,000 | ||||||||||||||||||
SBLCs expiring within one year | 3,400,000,000 | |||||||||||||||||||
SBLCs expiring within one to five years | 2,200,000,000 | |||||||||||||||||||
Allowance for lending related commitments | 93,000,000 | 89,000,000 | ||||||||||||||||||
Off balance sheet credit risk | 5,600,000,000 | [1] | 5,767,000,000 | [1] | 264,000,000 | 255,000,000 | ||||||||||||||
Maximum maturities of prearranged contract for a securities lending transaction (in days) | 90 days | |||||||||||||||||||
Cash collateralization percentage generally required for a securities lending transaction with indemnification against broker default (percent) | 102.00% | |||||||||||||||||||
Securities lending indemnifications, secured amount of collateral | 323,000,000,000 | 316,000,000,000 | ||||||||||||||||||
Securities lending indemnifications joint venture | 68,000,000,000 | 64,000,000,000 | ||||||||||||||||||
Securities Lending Indemnifications Collateral Joint Venture | 72,000,000,000 | 67,000,000,000 | ||||||||||||||||||
Loss contingency, aggregate range of reasonable loss | 280,000,000 | |||||||||||||||||||
Bank filed a proof of claim on Jan. 18, 2008 in the Chapter 11 bankruptcy of Sentinel Management Group, Inc. (Sentinel), seeking to recover approximate amount loaned to Sentinel | 312,000,000 | |||||||||||||||||||
FX-related settlements | 714,000,000 | 167,500,000 | 335,000,000 | 14,000,000 | 30,000,000 | |||||||||||||||
Number of pending lawsuits | 2 | |||||||||||||||||||
Number of lawsuits pending related to Stanford Matter (legal matters) | 11 | |||||||||||||||||||
Number of FINRA arbitration panels | 2 | |||||||||||||||||||
Number of arbitration claims related to Stanford matter settled | 38 | |||||||||||||||||||
Arbitration claims related to Stanford matter pending | 6 | |||||||||||||||||||
Litigation settlement amount | £ 126,000,000 | |||||||||||||||||||
[1] | Net of participations totaling $961 million at March 31, 2015 and $894 million at Dec. 31, 2014. |
Lines_of_Businesses_Additional
Lines of Businesses- Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of principal businesses (segment) | 2 |
Lines_of_Businesses_Contributi
Lines of Businesses- Contribution of Segments to Overall Profitability (Detail) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |||
Segment Reporting Information [Line Items] | ||||||
Fee and other revenue | $3,033 | [1] | $2,953 | [2] | $2,899 | [3] |
Net interest revenue | 728 | 712 | 728 | |||
Total revenue | 3,761 | [1] | 3,665 | [2] | 3,627 | [3] |
Provision for credit losses | 2 | 1 | -18 | |||
Noninterest expense | 2,700 | 3,524 | 2,739 | |||
Income before taxes | 1,059 | [1] | 140 | [2] | 906 | [3] |
Pre-tax operating margin (percent) | 28.00% | [4] | 4.00% | [4] | 25.00% | [4] |
Average assets | 374,890 | 385,232 | 354,992 | |||
Net income attributable to noncontrolling interests | 90 | 24 | 20 | |||
Investment Management funds | ||||||
Segment Reporting Information [Line Items] | ||||||
Fee and other revenue | 31 | 18 | 16 | |||
Investment income, net | 121 | 42 | 36 | |||
Net income attributable to noncontrolling interests | 90 | 24 | 20 | |||
Investment Management | ||||||
Segment Reporting Information [Line Items] | ||||||
Fee and other revenue | 936 | [1] | 929 | [2] | 900 | [3] |
Net interest revenue | 74 | 69 | 70 | |||
Total revenue | 1,010 | [1] | 998 | [2] | 970 | [3] |
Provision for credit losses | 0 | 0 | 0 | |||
Noninterest expense | 746 | 759 | 724 | |||
Income before taxes | 264 | [1] | 239 | [2] | 246 | [3] |
Pre-tax operating margin (percent) | 26.00% | [4] | 24.00% | [4] | 25.00% | [4] |
Average assets | 37,496 | 37,286 | 39,463 | |||
Net income attributable to noncontrolling interests | -90 | -24 | -20 | |||
Investment Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Fee and other revenue | 1,993 | 1,907 | 1,887 | |||
Net interest revenue | 600 | 574 | 590 | |||
Total revenue | 2,593 | 2,481 | 2,477 | |||
Provision for credit losses | 0 | 0 | 0 | |||
Noninterest expense | 1,838 | 2,555 | 1,822 | |||
Income before taxes | 755 | -74 | 655 | |||
Pre-tax operating margin (percent) | 29.00% | [4] | -3.00% | [4] | 26.00% | [4] |
Average assets | 284,978 | 276,586 | 258,470 | |||
Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Fee and other revenue | 104 | 117 | 112 | |||
Net interest revenue | 54 | 69 | 68 | |||
Total revenue | 158 | 186 | 180 | |||
Provision for credit losses | 2 | 1 | -18 | |||
Noninterest expense | 116 | 210 | 193 | |||
Income before taxes | 40 | -25 | 5 | |||
Average assets | $52,416 | $71,360 | $57,059 | |||
[1] | Both total fee and other revenue and total revenue include the net income from consolidated investment management funds of $31 million, representing $121 million of income and noncontrolling interests of $90 million. Income before taxes is net of noncontrolling interests of $90 million. | |||||
[2] | Both total fee and other revenue and total revenue include the net income from consolidated investment management funds of $18 million, representing $42 million of income and noncontrolling interests of $24 million. Income before taxes is net of noncontrolling interests of $24 million. | |||||
[3] | Both total fee and other revenue and total revenue include the net income from consolidated investment management funds of $16 million, representing $36 million of income and noncontrolling interests of $20 million. Income before taxes is net of noncontrolling interests of $20 million. | |||||
[4] | Income before taxes divided by total revenue. |
Supplemental_information_to_th2
Supplemental information to the Consolidated Statement of Cash Flows- Noncash Investing and Financing Transactions that are Not Reflected in Consolidated Statement of Cash Flows (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Supplemental Cash Flow Information [Abstract] | ||
Transfers from loans to other assets for other real estate owned (“OREOâ€) | $2 | $1 |
Change in assets of consolidated VIEs | 857 | 179 |
Change in liabilities of consolidated VIEs | 1,049 | 27 |
Change in noncontrolling interests of consolidated VIEs | 304 | 12 |
Securities not settled | 1,177 | 1,167 |
Available-for-sale securities transferred to held-to-maturity | $11,602 | $0 |