Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'MS | ' |
Entity Registrant Name | 'MORGAN STANLEY | ' |
Entity Central Index Key | '0000895421 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 1,951,340,420 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Financial Condition (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ||
Cash and due from banks ($465 and $526 at September 30, 2013 and December 31, 2012, respectiively, related to consolidated variable interest entities generally not available to the Company) | $14,333 | $20,878 | ||
Interest bearing deposits with banks | 43,448 | 26,026 | ||
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 37,392 | 30,970 | ||
Trading assets, at fair value (approximately $150,255 and $147,348 were pledged to various parties at September 30, 2013 and December 31, 2012, respectively; $2,994 and $3,505 related to consolidated variable interest entities, generally not available to the Company at September 30, 2013 and December 31, 2012, respectively) | 273,658 | 267,603 | ||
Securities available for sale, at fair value | 46,866 | 39,869 | ||
Securities received as collateral, at fair value | 16,042 | 14,278 | ||
Federal funds sold and securities purchased under agreements to resell (includes $868 and $621 at fair value at September 30, 2013 and December 31, 2012, respectively) | 133,988 | 134,412 | ||
Securities borrowed | 139,169 | 121,701 | ||
Customer and other receivables | 57,710 | 64,288 | ||
Loans (net of allowances of $166 and $106 at September 30, 2013 and December 31, 2012, respectively) | 37,734 | 29,046 | ||
Other investments | 5,083 | 4,999 | ||
Premises, equipment and software costs (net of accumulated depreciation of $6,205 and $5,525 at September 30, 2013 and December 31, 2012, respectively) ($213 and $224 at September 30, 2013 and December 31, 2012, respectively, related to consolidated variable interest entities, generally not available to the Company) | 6,008 | 5,946 | ||
Goodwill | 6,591 | [1] | 6,650 | [1] |
Intangible assets (net of accumulated amortization of $1,509 and $1,250 at September 30,2013 and December 31, 2012, respectively) (includes $8 and $7 at fair value at September 30, 2013 and December 31, 2012, respectively) | 3,514 | 3,783 | ||
Other assets ($523 and $593 at September 30, 2013 and December 31, 2012, respectively, related to consolidated variable interest entities, generally not available to the Company) | 10,687 | 10,511 | ||
Total assets | 832,223 | [2] | 780,960 | [2] |
Liabilities and Equity | ' | ' | ||
Deposits (includes $1,411 and $1,485 at fair value at September 30, 2013 and December 31, 2012, respectively). | 104,807 | 83,266 | ||
Commercial paper and other short-term borrowings (includes $1,623 and $725 at fair value at September 30, 2013 and December 31, 2012, respectively) | 2,333 | 2,138 | ||
Trading liabilities, at fair value | 122,645 | 120,122 | ||
Obligation to return securities received as collateral, at fair value | 20,899 | 18,226 | ||
Securities sold under agreements to repurchase (includes $554 and $363 at fair value at September 30, 2013 and December 31, 2012, respectively) | 139,398 | 122,674 | ||
Securities loaned | 32,807 | 36,849 | ||
Other secured financings (includes $6,145 and $9,466 at fair value at September 30,2013 and December 31, 2012, respectively) ($587 and $976 at September 30, 2013 and December 31, 2012, respectively, related to consolidated variable entities and are non-recourse to the Company) | 14,528 | [3] | 15,727 | [3] |
Customer and other payables | 152,091 | 127,722 | ||
Other liabilities and accrued expenses ($75 and $117 at September 30, 2013 and December 31, 2012, respectively, related to consolidated variable interest entities and are non-recourse to the Company) | 16,669 | 14,928 | ||
Long-term borrowings (includes $36,719 and $44,044 at fair value at September 30, 2013 and December 31, 2012, respectively) | 157,805 | 169,571 | ||
Total liabilities | 763,982 | 711,223 | ||
Commitments and contingent liabilities | ' | ' | ||
Redeemable noncontrolling interests | 0 | 4,309 | ||
Morgan Stanley shareholders' equity: | ' | ' | ||
Preferred stock | 2,370 | 1,508 | ||
Common stock, $0.01 par value: Shares authorized: 3,500,000,000 at September 30, 2013 and December 31, 2012; Shares issued: 2,038,893,979 at September 30, 2013 and 2,038,893,979 at December 31, 2012; Shares outstanding: 1,953,350,711 at September 30, 2013 and 1,974,042,123 at December 31, 2012 | 20 | 20 | ||
Additional Paid-in Capital | 24,235 | 23,426 | ||
Retained earnings | 42,237 | 39,912 | ||
Employee stock trust | 1,753 | 2,932 | ||
Accumulated other comprehensive loss | -1,014 | -516 | ||
Common stock held in treasury, at cost, $0.01 par value; 85,543,268 shares at September 30, 2013 and 64,851,856 shares at December 31, 2012 | -2,720 | -2,241 | ||
Common stock issued to employee trust | -1,753 | -2,932 | ||
Total Morgan Stanley shareholders' equity | 65,128 | 62,109 | ||
Nonredeemable noncontrolling interests | 3,113 | 3,319 | ||
Total equity | 68,241 | 65,428 | ||
Total liabilities, redeemable noncontrolling interests and equity | $832,223 | $780,960 | ||
[1] | The amount of the Company’s goodwill before accumulated impairments of $700 million, which included $673 million related to the Institutional Securities business segment and $27 million related to the Investment Management business segment, was $7,291 million and $7,350 million at September 30, 2013 and December 31, 2012, respectively. | |||
[2] | Corporate assets have been fully allocated to the Company’s business segments. | |||
[3] | Amounts include $6,145 million and $9,466 million at fair value at September 30, 2013 and December 31, 2012, respectively. |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Condition (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, except Share data, unless otherwise specified | ||||
Cash and due from banks | $14,333 | $20,878 | ||
Trading assets pledged to various parties | 150,255 | 147,348 | ||
Trading assets, at fair value | 273,658 | 267,603 | ||
Federal funds sold and securities purchased under agreement to resell, fair value | 868 | 621 | ||
Allowances, loans | 166 | 106 | ||
Premises, equipment and software costs, accumulated depreciation | 6,205 | 5,525 | ||
Premises, equipment and software costs | 6,008 | 5,946 | ||
Intangible assets, accumulated amortization | 1,509 | 1,250 | ||
Intangible assets, fair value | 8 | 7 | ||
Other assets | 10,687 | 10,511 | ||
Deposits, fair value | 1,411 | 1,485 | ||
Commercial paper and other short-term borrowings, fair value | 1,623 | 725 | ||
Securities sold under agreement to repurchase, fair value | 554 | 363 | ||
Other secured financings, fair value | 6,145 | 9,466 | ||
Other secured financings | 14,528 | [1] | 15,727 | [1] |
Other liabilities and accrued expenses | 16,669 | 14,928 | ||
Long-term borrowings, fair value | 36,719 | 44,044 | ||
Common stock par value per share | $0.01 | $0.01 | ||
Common stock, shares authorized | 3,500,000,000 | 3,500,000,000 | ||
Common stock, shares issued | 2,038,893,979 | 2,038,893,979 | ||
Common stock, shares outstanding | 1,953,350,711 | 1,974,042,123 | ||
Common stock held in treasury, shares | 85,543,268 | 64,851,856 | ||
Consolidated VIEs | ' | ' | ||
Cash and due from banks | 465 | 526 | ||
Trading assets, at fair value | 2,994 | 3,505 | ||
Premises, equipment and software costs | 213 | 224 | ||
Other assets | 523 | 593 | ||
Other secured financings | 587 | 976 | ||
Other liabilities and accrued expenses | $75 | $117 | ||
[1] | Amounts include $6,145 million and $9,466 million at fair value at September 30, 2013 and December 31, 2012, respectively. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenues: | ' | ' | ' | ' | ||||
Investment banking | $1,160 | $1,152 | $3,687 | $3,319 | ||||
Trading | 2,259 | 607 | 7,847 | 5,478 | ||||
Investments | 728 | 290 | 1,254 | 438 | ||||
Commissions and fees | 1,080 | 988 | 3,465 | 3,205 | ||||
Asset management, distribution and administration fees | 2,390 | 2,257 | 7,140 | 6,677 | ||||
Other | 204 | 141 | 700 | 403 | ||||
Total non-interest revenues | 7,821 | 5,435 | 24,093 | 19,520 | ||||
Interest income | 1,311 | [1] | 1,379 | [1] | 4,131 | [1] | 4,244 | [1] |
Interest expense | 1,200 | [1] | 1,534 | [1] | 3,631 | [1] | 4,618 | [1] |
Net interest | 111 | -155 | 500 | -374 | ||||
Net revenues | 7,932 | [2] | 5,280 | [2] | 24,593 | [2] | 19,146 | [2] |
Non-interest expenses: | ' | ' | ' | ' | ||||
Compensation and benefits | 3,968 | 3,928 | 12,289 | 11,989 | ||||
Occupancy and equipment | 375 | 386 | 1,131 | 1,152 | ||||
Brokerage, clearing and exchange fees | 416 | 359 | 1,300 | 1,167 | ||||
Information processing and communications | 405 | 493 | 1,323 | 1,439 | ||||
Marketing and business development | 151 | 138 | 448 | 439 | ||||
Professional services | 449 | 476 | 1,347 | 1,365 | ||||
Other | 829 | 983 | 2,059 | 1,939 | ||||
Total non-interest expenses | 6,593 | 6,763 | 19,897 | 19,490 | ||||
Income (loss) from continuing operations before income taxes | 1,339 | -1,483 | 4,696 | -344 | ||||
Provision for (benefit from) income taxes | 339 | -525 | 1,226 | -247 | ||||
Income (loss) from continuing operations | 1,000 | -958 | 3,470 | -97 | ||||
Discontinued operations: | ' | ' | ' | ' | ||||
Gain (loss) from discontinued operations | 16 | [3],[4] | -11 | [3],[4] | -55 | [3],[4] | 68 | [3],[4] |
Provision for (benefit from) income taxes | -2 | [3] | -13 | [3] | -25 | [3] | 43 | [3] |
Net gain (loss) from discontinued operations | 18 | [3] | 2 | [3] | -30 | [3] | 25 | [3] |
Net income (loss) | 1,018 | -956 | 3,440 | -72 | ||||
Net income applicable to redeemable noncontrolling interests | 0 | 8 | 222 | 8 | ||||
Net income applicable to nonredeemable noncontrolling interests | 112 | 59 | 370 | 446 | ||||
Net income (loss) applicable to Morgan Stanley | 906 | -1,023 | 2,848 | -526 | ||||
Earnings (loss) applicable to Morgan Stanley common shareholders | 880 | -1,047 | 2,619 | -599 | ||||
Amounts applicable to Morgan Stanley: | ' | ' | ' | ' | ||||
Income (loss) from continuing operations | 888 | -1,008 | 2,878 | -525 | ||||
Net gain (loss) from discontinued operations | 18 | -15 | -30 | -1 | ||||
Net income (loss) applicable to Morgan Stanley | $906 | ($1,023) | $2,848 | ($526) | ||||
Earnings (loss) per basic common share: | ' | ' | ' | ' | ||||
Income (loss) from continuing operations | $0.45 | ($0.55) | $1.39 | ($0.32) | ||||
Net gain (loss) from discontinued operations | $0.01 | $0 | ($0.02) | $0 | ||||
Earnings (loss) per basic common share | $0.46 | ($0.55) | $1.37 | ($0.32) | ||||
Earnings (loss) per diluted common share: | ' | ' | ' | ' | ||||
Income (loss) from continuing operations | $0.44 | ($0.55) | $1.36 | ($0.32) | ||||
Net gain (loss) from discontinued operations | $0.01 | $0 | ($0.02) | $0 | ||||
Earnings (loss) per diluted common share | $0.45 | ($0.55) | $1.34 | ($0.32) | ||||
Dividends declared per common share | $0.05 | $0.05 | $0.15 | $0.15 | ||||
Average common shares outstanding: | ' | ' | ' | ' | ||||
Basic | 1,909,350,788 | 1,889,300,631 | 1,906,097,564 | 1,883,813,883 | ||||
Diluted | 1,964,812,610 | 1,889,300,631 | 1,952,146,477 | 1,883,813,883 | ||||
[1] | Interest income and expense are recorded within the condensed consolidated statements of income depending on the nature of the instrument and related market conventions. When interest is included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. | |||||||
[2] | In certain management fee arrangements, the Company is entitled to receive performance-based fees (also referred to as incentive fees) when the return on assets under management exceeds certain benchmark returns or other performance targets. In such arrangements, performance fee revenue is accrued (or reversed) quarterly based on measuring account fund performance to date versus the performance benchmark stated in the investment management agreement. The amount of performance-based fee revenue at risk of reversing if fund performance falls below stated investment management agreement benchmarks was approximately $446 million at September 30, 2013 and approximately $205 million at December 31, 2012 (see Note 2 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K). | |||||||
[3] | See Notes 1 and 21 for discussion of discontinued operations. | |||||||
[4] | Amounts included eliminations of intersegment activity. |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Condensed Consolidated Statements of Comprehensive Income | ' | ' | ' | ' | ||||
Net income (loss) | $1,018 | ($956) | $3,440 | ($72) | ||||
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' | ||||
Foreign currency translation adjustments | 125 | [1] | 43 | [1] | -321 | [1] | -88 | [1] |
Amortization of cash flow hedges | 1 | [2] | 2 | [2] | 3 | [2] | 5 | [2] |
Change in net unrealized gains (losses) on securities available for sale | 33 | [3] | 62 | [3] | -336 | [3] | 84 | [3] |
Pension, postretirement and other related adjustments | 4 | [4] | -4 | [4] | 15 | [4] | 15 | [4] |
Total other comprehensive income (loss) | 163 | 103 | -639 | 16 | ||||
Comprehensive income (loss) | 1,181 | -853 | 2,801 | -56 | ||||
Net income applicable to redeemable noncontrolling interests | 0 | 8 | 222 | 8 | ||||
Net income applicable to nonredeemable noncontrolling interests | 112 | 59 | 370 | 446 | ||||
Other comprehensive income (loss) applicable to redeemable noncontrolling interests | 0 | -1 | 0 | -1 | ||||
Other comprehensive income (loss) applicable to nonredeemable noncontrolling interests | 8 | 29 | -141 | 5 | ||||
Comprehensive income (loss) applicable to Morgan Stanley | 1,061 | -948 | 2,350 | -514 | ||||
Parenthetical Disclosures | ' | ' | ' | ' | ||||
Foreign currency translation adjustments, provision for (benefit from) income taxes | -124 | -150 | 176 | 26 | ||||
Amortization of cash flow hedges, provision for income taxes | 1 | 1 | 2 | 3 | ||||
Change in net unrealized gains (losses) on securities available for sale, provision for (benefit from) income taxes | 23 | 46 | -230 | 63 | ||||
Pension, postretirement and other related adjustments, provision for income taxes | $2 | $8 | $13 | $18 | ||||
[1] | Amounts are net of provision for (benefit from) income taxes of $(124) million and $(150) million for the quarters ended September 30, 2013 and 2012, respectively, and $176 million and $26 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||
[2] | Amounts are net of provision for income taxes of $1 million and $1 million for the quarters ended September 30, 2013 and 2012, respectively, and $2 million and $3 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||
[3] | Amounts are net of provision for (benefit from) income taxes of $23 million and $46 million for the quarters ended September 30, 2013 and 2012, respectively, and $(230) million and $63 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||
[4] | Amounts are net of provision for income taxes of $2 million and $8 million for the quarters ended September 30, 2013 and 2012, respectively, and $13 million and $18 million for the nine months ended September 30, 2013 and 2012, respectively. |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income (loss) | $3,440 | ($72) |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
(Income) loss on equity method investees | -339 | 24 |
Compensation payable in common stock and options | 850 | 898 |
Depreciation and amortization | 1,084 | 1,218 |
Gain on business dispositions | -34 | -108 |
Gain on sale of securities available for sale | -43 | -53 |
Impairment charges | 182 | 224 |
Provision for credit losses on lending activities | 116 | 127 |
Other non-cash adjustments to net income | 31 | 1 |
Changes in assets and liabilities: | ' | ' |
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | -6,422 | 607 |
Trading assets, net of Trading liabilities | -5,944 | 31,556 |
Securities borrowed | -17,468 | -11,471 |
Securities loaned | -4,042 | 5,458 |
Customer and other receivables and other assets | 6,761 | -23,746 |
Customer and other payables and other liabilities | 21,500 | 9,765 |
Federal funds sold and securities purchased under agreements to resell | 424 | -6,127 |
Securities sold under agreements to repurchase | 16,724 | 14,465 |
Net cash provided by operating activities | 16,820 | 22,766 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Premises, equipment and software costs | -944 | -865 |
Business dispositions, net of cash disposed | 569 | 1,536 |
Loans, net | -6,046 | -1,739 |
Purchases of securities available for sale | -20,497 | -17,492 |
Sales, maturities and redemptions of securities available for sale | 12,812 | 8,200 |
Other investing activities | 117 | 6 |
Net cash used for investing activities | -13,989 | -10,354 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Commercial paper and other short-term borrowings | 195 | -720 |
Noncontrolling interests | -549 | -186 |
Other secured financings | -1,395 | -4,291 |
Deposits | 21,541 | 5,095 |
Proceeds from: | ' | ' |
Excess tax benefits associated with stock-based awards | 8 | 42 |
Derivatives financing activities | 244 | 220 |
Issuance of Series E Preferred Stock | 854 | 0 |
Issuance of long-term borrowings | 24,766 | 16,196 |
Payments for: | ' | ' |
Long-term borrowings | -31,084 | -36,386 |
Derivatives financing activities | -237 | -118 |
Repurchases of common stock | -451 | -222 |
Purchase of additional stake in Morgan Stanley Smith Barney Holdings LLC | -4,725 | -1,890 |
Cash dividends | -358 | -349 |
Net cash used for financing activities | 8,809 | -22,609 |
Effect of exchange rate changes on cash and cash equivalents | -298 | -42 |
Effect of cash and cash equivalents related to variable interest entities | -465 | -487 |
Net increase (decrease) in cash and cash equivalents | 10,877 | -10,726 |
Cash and cash equivalents, at beginning of period | 46,904 | 47,312 |
Cash and cash equivalents, at end of period | 57,781 | 36,586 |
Cash and cash equivalents include: | ' | ' |
Cash and due from banks | 14,333 | 18,239 |
Interest bearing deposits with banks | 43,448 | 18,347 |
Cash and cash equivalents, at end of period | 57,781 | 36,586 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' |
Cash payments for interest | 3,372 | 3,423 |
Cash payments for income taxes | $598 | $330 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Changes in Total Equity (USD $) | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Employee Stock Trust | Accumulated Other Comprehensive Income (Loss) | Common Stock Held in Treasury at Cost | Common Stock Issued to Employee Trust | Non-Redeemable Non-controlling Interests | |
In Millions | |||||||||||
BALANCE AT at Dec. 31, 2011 | $70,078 | $1,508 | $20 | $22,836 | $40,341 | $3,166 | ($157) | ($2,499) | ($3,166) | $8,029 | |
Net income (loss) applicable to Morgan Stanley | -526 | ' | ' | ' | -526 | ' | ' | ' | ' | ' | |
Net income applicable to nonredeemable noncontrolling interests | 446 | ' | ' | ' | ' | ' | ' | ' | ' | 446 | |
Dividends | -374 | ' | ' | ' | -374 | ' | ' | ' | ' | ' | |
Shares issued under employee plans and related tax effects | 968 | ' | ' | 473 | ' | -187 | ' | 495 | 187 | ' | |
Repurchases of common stock | -222 | ' | ' | ' | ' | ' | ' | -222 | ' | ' | |
Foreign currency translation adjustments | -88 | ' | ' | ' | ' | ' | -88 | ' | ' | ' | |
Net change in cash flow hedges | 5 | [1] | ' | ' | ' | ' | ' | 5 | ' | ' | ' |
Change in net unrealized gains (losses) on securities available for sale | 84 | [2] | ' | ' | ' | ' | ' | 84 | ' | ' | ' |
Pension, postretirement and other related adjustments | 15 | [3] | ' | ' | ' | ' | ' | 10 | ' | ' | 5 |
Morgan Stanley Smith Barney Holdings LLC redemption value adjustment | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Purchase of additional stake in Morgan Stanley Smith Barney Holdings LLC | -1,825 | ' | ' | -107 | ' | ' | ' | ' | ' | -1,718 | |
Reclassification to redeemable noncontrolling interests | -4,296 | ' | ' | ' | ' | ' | ' | ' | ' | -4,296 | |
Other net increases (decreases) | 905 | ' | ' | ' | ' | ' | ' | ' | ' | 905 | |
BALANCE AT at Sep. 30, 2012 | 65,170 | 1,508 | 20 | 23,202 | 39,441 | 2,979 | -146 | -2,226 | -2,979 | 3,371 | |
BALANCE AT at Dec. 31, 2012 | 65,428 | 1,508 | 20 | 23,426 | 39,912 | 2,932 | -516 | -2,241 | -2,932 | 3,319 | |
Net income (loss) applicable to Morgan Stanley | 2,848 | ' | ' | ' | 2,848 | ' | ' | ' | ' | ' | |
Net income applicable to nonredeemable noncontrolling interests | 370 | ' | ' | ' | ' | ' | ' | ' | ' | 370 | |
Dividends | -372 | ' | ' | ' | -372 | ' | ' | ' | ' | ' | |
Shares issued under employee plans and related tax effects | 789 | ' | ' | 817 | ' | -1,179 | ' | -28 | 1,179 | ' | |
Repurchases of common stock | -451 | ' | ' | ' | ' | ' | ' | -451 | ' | ' | |
Foreign currency translation adjustments | -321 | ' | ' | ' | ' | ' | -180 | ' | ' | -141 | |
Net change in cash flow hedges | 3 | [1] | ' | ' | ' | ' | ' | 3 | ' | ' | ' |
Change in net unrealized gains (losses) on securities available for sale | -336 | [2] | ' | ' | ' | ' | ' | -336 | ' | ' | ' |
Pension, postretirement and other related adjustments | 15 | [3] | ' | ' | ' | ' | ' | 15 | ' | ' | ' |
Issuance of Series E Preferred Stock | 854 | 862 | ' | -8 | ' | ' | ' | ' | ' | ' | |
Morgan Stanley Smith Barney Holdings LLC redemption value adjustment | -151 | ' | ' | ' | -151 | ' | ' | ' | ' | ' | |
Other net increases (decreases) | -435 | ' | ' | ' | ' | ' | ' | ' | ' | -435 | |
BALANCE AT at Sep. 30, 2013 | $68,241 | $2,370 | $20 | $24,235 | $42,237 | $1,753 | ($1,014) | ($2,720) | ($1,753) | $3,113 | |
[1] | Amounts are net of provision for income taxes of $1 million and $1 million for the quarters ended September 30, 2013 and 2012, respectively, and $2 million and $3 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||
[2] | Amounts are net of provision for (benefit from) income taxes of $23 million and $46 million for the quarters ended September 30, 2013 and 2012, respectively, and $(230) million and $63 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||
[3] | Amounts are net of provision for income taxes of $2 million and $8 million for the quarters ended September 30, 2013 and 2012, respectively, and $13 million and $18 million for the nine months ended September 30, 2013 and 2012, respectively. |
Introduction_and_Basis_of_Pres
Introduction and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Introduction and Basis of Presentation [Abstract] | ' |
Introduction And Basis Of Presentation | ' |
1. Introduction and Basis of Presentation. | |
The Company. Morgan Stanley, a financial holding company, is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. The Company, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Company” mean Morgan Stanley (the “Parent”) together with its consolidated subsidiaries. | |
Effective with the quarter ended June 30, 2013, the Global Wealth Management Group and Asset Management business segments were re-titled Wealth Management and Investment Management, respectively. | |
A summary of the activities of each of the Company's business segments is as follows: | |
Institutional Securities provides financial advisory and capital raising services, including advice on mergers and acquisitions, restructurings, real estate and project finance; corporate lending; sales, trading, financing and market-making activities in equity and fixed income securities and related products, including foreign exchange and commodities; and investment activities. | |
Wealth Management provides brokerage and investment advisory services to individual investors and small-to-medium sized businesses and institutions covering various investment alternatives; financial and wealth planning services; annuity and other insurance products; credit and other lending products; cash management services; retirement services; and trust and fiduciary services and engages in fixed income trading, which primarily facilitates clients' trading or investments in such securities. | |
Investment Management provides a broad array of investment strategies that span the risk/return spectrum across geographies, asset classes and public and private markets to a diverse group of clients across the institutional and intermediary channels as well as high net worth clients. | |
Discontinued Operations. | |
Quilter. On April 2, 2012, the Company completed the sale of Quilter & Co. Ltd. (“Quilter”), its retail wealth management business in the United Kingdom (“U.K.”). The results of Quilter are reported as discontinued operations within the Wealth Management business segment for all periods presented. | |
Saxon. On October 24, 2011, the Company announced that it had reached an agreement to sell Saxon, a provider of servicing and subservicing of residential mortgage loans, to Ocwen Financial Corporation. The transaction, which was restructured as a sale of Saxon's assets during the first quarter of 2012, was substantially completed in the second quarter of 2012. The results of Saxon are reported as discontinued operations within the Institutional Securities business segment for all periods presented. | |
Prior period amounts have been recast for discontinued operations. See Note 21 for additional information on discontinued operations. | |
Basis of Financial Information. The condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.”), which require the Company to make estimates and assumptions regarding the valuations of certain financial instruments, the valuation of goodwill and intangible assets, compensation, deferred tax assets, the outcome of litigation and tax matters, and other matters that affect the condensed consolidated financial statements and related disclosures. The Company believes that the estimates utilized in the preparation of the condensed consolidated financial statements are prudent and reasonable. Actual results could differ materially from these estimates. | |
Intercompany balances and transactions have been eliminated. | |
In the quarter ended March 31, 2013, the Company renamed “Principal transactions—Trading” revenues as “Trading” revenues and “Principal transactions—Investments” revenues as “Investments” revenues in the condensed consolidated statements of income, and “Financial instruments owned” as “Trading assets,” “Financial instruments sold, not yet purchased” as “Trading liabilities,” “Receivables” as “Customer and other receivables” and “Payables” as “Customer and other payables” in the condensed consolidated statements of financial condition. | |
The condensed consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012 (the “Form 10-K”). The condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the interim period. The results of operations for interim periods are not necessarily indicative of results for the entire year. | |
Consolidation. The condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and other entities in which the Company has a controlling financial interest, including certain variable interest entities (“VIE”) (see Note 7). For consolidated subsidiaries that are less than wholly owned, the third-party holdings of equity interests are referred to as noncontrolling interests. The portion of net income attributable to noncontrolling interests for such subsidiaries is presented as either Net income (loss) applicable to redeemable noncontrolling interests or Net income (loss) applicable to nonredeemable noncontrolling interests in the condensed consolidated statements of income. The portion of the shareholders' equity of such subsidiaries that is redeemable is presented as Redeemable noncontrolling interests outside of the equity section in the condensed consolidated statements of financial condition. The portion of the shareholders' equity of such subsidiaries that is nonredeemable is presented as Nonredeemable noncontrolling interests, a component of total equity, in the condensed consolidated statements of financial condition. | |
For entities where (1) the total equity investment at risk is sufficient to enable the entity to finance its activities without additional support and (2) the equity holders bear the economic residual risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Company consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet these criteria), the Company consolidates those entities where the Company has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE, except for certain VIEs that are money market funds, investment companies or are entities qualifying for accounting purposes as investment companies. Generally, the Company consolidates those entities when it absorbs a majority of the expected losses or a majority of the expected residual returns, or both, of the entities. | |
For investments in entities in which the Company does not have a controlling financial interest but has significant influence over operating and financial decisions, the Company generally applies the equity method of accounting with net gains and losses recorded within Other revenues. Where the Company has elected to measure certain eligible investments at fair value in accordance with the fair value option, net gains and losses are recorded within Investments revenues (see Note 4). | |
Equity and partnership interests held by entities qualifying for accounting purposes as investment companies are carried at fair value. | |
The Company's significant regulated U.S. and international subsidiaries include Morgan Stanley & Co. LLC (“MS&Co.”), Morgan Stanley Smith Barney LLC (“MSSB LLC”), Morgan Stanley & Co. International plc (“MSIP”), Morgan Stanley MUFG Securities Co., Ltd. (“MSMS”), Morgan Stanley Bank, N.A. (“MSBNA”) and Morgan Stanley Private Bank, National Association (“MSPBNA”). | |
Income Statement Presentation. The Company, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. In connection with the delivery of the various products and services to clients, the Company manages its revenues and related expenses in the aggregate. As such, when assessing the performance of its businesses, primarily in its Institutional Securities business segment, the Company considers its trading, investment banking, commissions and fees and interest income, along with the associated interest expense, as one integrated activity. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
2. Significant Accounting Policies. | |
For a detailed discussion about the Company's significant accounting policies, see Note 2 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K. | |
During the nine months ended September 30, 2013, no updates were made to the Company's significant accounting policies. | |
Condensed Consolidated Statements of Cash Flows. | |
For purposes of the condensed consolidated statements of cash flows, cash and cash equivalents consist of Cash and due from banks and Interest bearing deposits with banks, which are highly liquid investments with original maturities of three months or less, held for investment purposes, and readily convertible to known amounts of cash. | |
In the nine months ended September 30, 2012, the Company's significant non-cash activities included approximately $1.1 billion of net assets received from Citigroup, Inc. (“Citi”) related to Citi's required equity contribution in connection with the Morgan Stanley Smith Barney Holdings LLC (“Wealth Management JV”) platform integration (see Notes 3 and 14). | |
Accounting Developments. | |
Disclosures about Offsetting Assets and Liabilities. In January 2013, the Financial Accounting Standards Board (the “FASB”) issued an accounting update that clarified the intended scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement. These disclosure requirements became effective for the Company beginning on January 1, 2013. Since these amended principles require only additional disclosures concerning offsetting and related arrangements, adoption has not affected the Company's condensed consolidated statements of income or financial condition (see Notes 6 and 11). | |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. In February 2013, the FASB issued an accounting update that created new disclosure requirements requiring entities to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles (“GAAP”) to be reclassified in its entirety to net income. The disclosure requirements became effective for the Company beginning on January 1, 2013. Since these amended principles require only additional disclosures concerning amounts reclassified out of accumulated other comprehensive income, adoption has not affected the Company's condensed consolidated statements of comprehensive income or notes to the condensed consolidated financial statements (see Note 14). | |
Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. In July 2013, the FASB issued an accounting update that included amendments permitting the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to interest rates on direct Treasury obligations of the U.S. government and the London Interbank Offered Rate (“LIBOR”). The amendments also removed the restriction on using different benchmark rates for similar hedges. The amendments became effective for the Company for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this accounting guidance did not have a material impact on the Company's condensed consolidated financial statements. |
Morgan_Stanley_Smith_Barney_Ho
Morgan Stanley Smith Barney Holdings LLC. | 9 Months Ended |
Sep. 30, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
Wealth Management Joint Venture Disclosures | ' |
3. Morgan Stanley Smith Barney Holdings LLC. | |
On May 31, 2009, the Company and Citi consummated the combination of each institution's respective wealth management business. The combined businesses operated as the Wealth Management JV through June 2013. | |
Prior to September 2012, the Company owned 51% and Citi owned 49% of the Wealth Management JV. On September 17, 2012, the Company purchased an additional 14% stake in the Wealth Management JV from Citi for $1.89 billion, increasing the Company's interest from 51% to 65%. In addition, in September 2012, the terms of the Wealth Management JV agreement regarding the purchase of the remaining 35% interest were amended, which resulted in a reclassification of approximately $4.3 billion from nonredeemable noncontrolling interests to redeemable noncontrolling interests during the third quarter of 2012. Prior to September 17, 2012, Citi's results related to its 49% interest were reported in net income (loss) applicable to nonredeemable noncontrolling interests in the condensed consolidated statements of income. Subsequent to the purchase of the additional 14% stake, Citi's results related to its 35% interest were reported in net income (loss) applicable to redeemable noncontrolling interests in the condensed consolidated statements of income. In connection with the Company's acquisition of the additional 14% stake in the Wealth Management JV and pursuant to an amended deposit sweep agreement between Citi and the Company, in October 2012 $5.4 billion of deposits held by Citi relating to customer accounts were transferred to the Company's depository institutions at no premium based on a valuation agreement reached between Citi and the Company, and as such were no longer swept to Citi. | |
In June 2013, the Company received final regulatory approval to acquire the remaining 35% stake in the Wealth Management JV. On June 28, 2013, the Company purchased the remaining 35% interest for $4.725 billion, increasing the Company's interest from 65% to 100%. The Company recorded a negative adjustment to retained earnings of approximately $151 million (net of tax) to reflect the difference between the purchase price for the 35% interest in the Wealth Management JV and its carrying value. This adjustment negatively impacted the calculation of basic and diluted earnings per share for the nine months ended September 30, 2013 (see Note 15). | |
Additionally, in conjunction with the purchase of the remaining 35% interest, in June 2013 the Company redeemed all of the Class A Preferred Interests in the Wealth Management JV owned by Citi and its affiliates for approximately $2.028 billion and repaid to Citi $880 million in senior debt. | |
Concurrent with the acquisition of the remaining 35% stake in the Wealth Management JV, the deposit sweep agreement between Citi and the Company was terminated. During the quarter ended September 30, 2013, approximately $21 billion of deposits held by Citi relating to customer accounts were transferred to the Company's depository institutions. At September 30, 2013, approximately $35 billion of deposits will be transferred to the Company's depository institutions on an agreed upon basis through June 2015 (see Note 22). |
Fair_Value_Disclosures
Fair Value Disclosures | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Fair Value Disclosures | ' | |||||||||||||||||||||
Fair Value Disclosures | ' | |||||||||||||||||||||
4. Fair Value Disclosures. | ||||||||||||||||||||||
Fair Value Measurements. | ||||||||||||||||||||||
A description of the valuation techniques applied to the Company's major categories of assets and liabilities measured at fair value on a recurring basis follows. | ||||||||||||||||||||||
Trading Assets and Trading Liabilities. | ||||||||||||||||||||||
U.S. Government and Agency Securities. | ||||||||||||||||||||||
• U.S. Treasury Securities. U.S. Treasury securities are valued using quoted market prices. Valuation adjustments are not applied. Accordingly, U.S. Treasury securities are generally categorized in Level 1 of the fair value hierarchy. | ||||||||||||||||||||||
• U.S. Agency Securities. U.S. agency securities are composed of three main categories consisting of agency-issued debt, agency mortgage pass-through pool securities and collateralized mortgage obligations. Non-callable agency-issued debt securities are generally valued using quoted market prices. Callable agency-issued debt securities are valued by benchmarking model-derived prices to quoted market prices and trade data for identical or comparable securities. The fair value of agency mortgage pass-through pool securities is model-driven based on spreads of the comparable To-be-announced (“TBA”) security. Collateralized mortgage obligations are valued using quoted market prices and trade data adjusted by subsequent changes in related indices for identical or comparable securities. Actively traded non-callable agency-issued debt securities are generally categorized in Level 1 of the fair value hierarchy. Callable agency-issued debt securities, agency mortgage pass-through pool securities and collateralized mortgage obligations are generally categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||
Other Sovereign Government Obligations. | ||||||||||||||||||||||
• Foreign sovereign government obligations are valued using quoted prices in active markets when available. These bonds are generally categorized in Level 1 of the fair value hierarchy. If the market is less active or prices are dispersed, these bonds are categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||
Corporate and Other Debt. | ||||||||||||||||||||||
• State and Municipal Securities. The fair value of state and municipal securities is determined using recently executed transactions, market price quotations and pricing models that factor in, where applicable, interest rates, bond or credit default swap spreads and volatility. These bonds are generally categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||
• Residential Mortgage-Backed Securities (“RMBS”), Commercial Mortgage-Backed Securities (“CMBS”) and other Asset-Backed Securities (“ABS”). RMBS, CMBS and other ABS may be valued based on price or spread data obtained from observed transactions or independent external parties such as vendors or brokers. When position-specific external price data are not observable, the fair value determination may require benchmarking to similar instruments and/or analyzing expected credit losses, default and recovery rates, and/or applying discounted cash flow techniques. In evaluating the fair value of each security, the Company considers security collateral-specific attributes, including payment priority, credit enhancement levels, type of collateral, delinquency rates and loss severity. In addition, for RMBS borrowers, Fair Isaac Corporation (“FICO”) scores and the level of documentation for the loan are also considered. Market standard models, such as Intex, Trepp or others, may be deployed to model the specific collateral composition and cash flow structure of each transaction. Key inputs to these models are market spreads, forecasted credit losses, default and prepayment rates for each asset category. Valuation levels of RMBS and CMBS indices are also used as an additional data point for benchmarking purposes or to price outright index positions. | ||||||||||||||||||||||
RMBS, CMBS and other ABS are generally categorized in Level 2 of the fair value hierarchy. If external prices or significant spread inputs are unobservable or if the comparability assessment involves significant subjectivity related to property type differences, cash flows, performance and other inputs, then RMBS, CMBS and other ABS are categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||||||||
• Corporate Bonds. The fair value of corporate bonds is determined using recently executed transactions, market price quotations (where observable), bond spreads, credit default swap spreads, at the money volatility and/or volatility skew obtained from independent external parties such as vendors and brokers adjusted for any basis difference between cash and derivative instruments. The spread data used are for the same maturity as the bond. If the spread data do not reference the issuer, then data that reference a comparable issuer are used. When position-specific external price data are not observable, fair value is determined based on either benchmarking to similar instruments or cash flow models with yield curves, bond or single-name credit default swap spreads and recovery rates as significant inputs. Corporate bonds are generally categorized in Level 2 of the fair value hierarchy; in instances where prices, spreads or any of the other aforementioned key inputs are unobservable, they are categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||||||||
• Collateralized Debt Obligation (“CDO”). The Company holds cash CDOs that typically reference a tranche of an underlying synthetic portfolio of single name credit default swaps collateralized by corporate bonds (“credit-linked notes”) or cash portfolio of asset-backed securities (“asset-backed CDOs”). Credit correlation, a primary input used to determine the fair value of credit-linked notes, is usually unobservable and derived using a benchmarking technique. The other credit-linked note model inputs such as credit spreads, including collateral spreads, and interest rates are typically observable. Asset-backed CDOs are valued based on an evaluation of the market and model input parameters sourced from similar positions as indicated by primary and secondary market activity. Each asset-backed CDO position is evaluated independently taking into consideration available comparable market levels, underlying collateral performance and pricing, and deal structures, as well as liquidity. Cash CDOs are categorized in Level 2 of the fair value hierarchy when either the credit correlation input is insignificant or comparable market transactions are observable. In instances where the credit correlation input is deemed to be significant or comparable market transactions are unobservable, cash CDOs are categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||||||||
• Corporate Loans and Lending Commitments. The fair value of corporate loans is determined using recently executed transactions, market price quotations (where observable), implied yields from comparable debt, and market observable credit default swap spread levels obtained from independent external parties such as vendors and brokers adjusted for any basis difference between cash and derivative instruments, along with proprietary valuation models and default recovery analysis where such transactions and quotations are unobservable. The fair value of contingent corporate lending commitments is determined by using executed transactions on comparable loans and the anticipated market price based on pricing indications from syndicate banks and customers. The valuation of loans and lending commitments also takes into account fee income that is considered an attribute of the contract. Corporate loans and lending commitments are categorized in Level 2 of the fair value hierarchy except in instances where prices or significant spread inputs are unobservable, in which case they are categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||||||||
• Mortgage Loans. Mortgage loans are valued using observable prices based on transactional data or third-party pricing for identical or comparable instruments, when available. Where position-specific external prices are not observable, the Company estimates fair value based on benchmarking to prices and rates observed in the primary market for similar loan or borrower types or based on the present value of expected future cash flows using its best estimates of the key assumptions, including forecasted credit losses, prepayment rates, forward yield curves and discount rates commensurate with the risks involved or a methodology that utilizes the capital structure and credit spreads of recent comparable securitization transactions. Mortgage loans valued based on observable market data for identical or comparable instruments are categorized in Level 2 of the fair value hierarchy. Where observable prices are not available, due to the subjectivity involved in the comparability assessment related to mortgage loan vintage, geographical concentration, prepayment speed and projected loss assumptions, mortgage loans are categorized in Level 3 of the fair value hierarchy. Mortgage loans are presented within Loans and lending commitments in the fair value hierarchy table. | ||||||||||||||||||||||
• Auction Rate Securities (“ARS”). The Company primarily holds investments in Student Loan Auction Rate Securities (“SLARS”) and Municipal Auction Rate Securities (“MARS”) with interest rates that are reset through periodic auctions. SLARS are ABS backed by pools of student loans. MARS are municipal bonds often wrapped by municipal bond insurance. ARS were historically traded and valued as floating rate notes, priced at par due to the auction mechanism. Beginning in fiscal 2008, uncertainties in the credit markets have resulted in auctions failing for certain types of ARS. Once the auctions failed, ARS could no longer be valued using observations of auction market prices. Accordingly, the fair value of ARS is determined using independent external market data where available and an internally developed methodology to discount for the lack of liquidity and non-performance risk. | ||||||||||||||||||||||
Inputs that impact the valuation of SLARS are independent external market data, the underlying collateral types, level of seniority in the capital structure, amount of leverage in each structure, credit rating and liquidity considerations. Inputs that impact the valuation of MARS are recently executed transactions, the maximum rate, quality of underlying issuers/insurers and evidence of issuer calls/prepayment. ARS are generally categorized in Level 2 of the fair value hierarchy as the valuation technique relies on observable external data. SLARS and MARS are presented within Asset-backed securities and State and municipal securities, respectively, in the fair value hierarchy table. | ||||||||||||||||||||||
Corporate Equities. | ||||||||||||||||||||||
• Exchange-Traded Equity Securities. Exchange-traded equity securities are generally valued based on quoted prices from the exchange. To the extent these securities are actively traded, valuation adjustments are not applied, and they are categorized in Level 1 of the fair value hierarchy; otherwise, they are categorized in Level 2 or Level 3 of the fair value hierarchy. | ||||||||||||||||||||||
• Unlisted Equity Securities. Unlisted equity securities are valued based on an assessment of each underlying security, considering rounds of financing and third-party transactions, discounted cash flow analyses and market-based information, including comparable company transactions, trading multiples and changes in market outlook, among other factors. These securities are generally categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||||||||
• Fund Units. Listed fund units are generally marked to the exchange-traded price or net asset value (“NAV”) and are categorized in Level 1 of the fair value hierarchy if actively traded on an exchange or in Level 2 of the fair value hierarchy if trading is not active. Unlisted fund units are generally marked to NAV and categorized as Level 2; however, positions which are not redeemable at the measurement date or in the near future are categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||||||||
Derivative and Other Contracts. | ||||||||||||||||||||||
• Listed Derivative Contracts. Listed derivatives that are actively traded are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy. Listed derivatives that are not actively traded are valued using the same approaches as those applied to over-the-counter (“OTC”) derivatives; they are generally categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||
• OTC Derivative Contracts. OTC derivative contracts include forward, swap and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices or commodity prices. | ||||||||||||||||||||||
Depending on the product and the terms of the transaction, the fair value of OTC derivative products can be either observed or modeled using a series of techniques and model inputs from comparable benchmarks, including closed-form analytic formulas, such as the Black-Scholes option-pricing model, and simulation models or a combination thereof. Many pricing models do not entail material subjectivity because the methodologies employed do not necessitate significant judgment, and the pricing inputs are observed from actively quoted markets, as is the case for generic interest rate swaps, certain option contracts and certain credit default swaps. In the case of more established derivative products, the pricing models used by the Company are widely accepted by the financial services industry. A substantial majority of OTC derivative products valued by the Company using pricing models fall into this category and are categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||
Other derivative products, including complex products that have become illiquid, require more judgment in the implementation of the valuation technique applied due to the complexity of the valuation assumptions and the reduced observability of inputs. This includes certain types of interest rate derivatives with both volatility and correlation exposure and credit derivatives including credit default swaps on certain mortgage-backed or asset-backed securities, basket credit default swaps and CDO-squared positions (a CDO-squared position is a special purpose vehicle that issues interests, or tranches, that are backed by tranches issued by other CDOs) where direct trading activity or quotes are unobservable. These instruments involve significant unobservable inputs and are categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||||||||
Derivative interests in credit default swaps on certain mortgage-backed or asset-backed securities, for which observability of external price data is limited, are valued based on an evaluation of the market and model input parameters sourced from similar positions as indicated by primary and secondary market activity. Each position is evaluated independently taking into consideration available comparable market levels as well as cash-synthetic basis, or the underlying collateral performance and pricing, behavior of the tranche under various cumulative loss and prepayment scenarios, deal structures (e.g., non-amortizing reference obligations, call features, etc.) and liquidity. While these factors may be supported by historical and actual external observations, the determination of their value as it relates to specific positions nevertheless requires significant judgment. | ||||||||||||||||||||||
For basket credit default swaps and CDO-squared positions, the correlation input between reference credits is unobservable for each specific swap or position and is benchmarked to standardized proxy baskets for which correlation data are available. The other model inputs such as credit spread, interest rates and recovery rates are observable. In instances where the correlation input is deemed to be significant, these instruments are categorized in Level 3 of the fair value hierarchy; otherwise, these instruments are categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||
The Company trades various derivative structures with commodity underlyings. Depending on the type of structure, the model inputs generally include interest rate yield curves, commodity underlier price curves, implied volatility of the underlying commodities and, in some cases, the implied correlation between these inputs. The fair value of these products is determined using executed trades and broker and consensus data to provide values for the aforementioned inputs. Where these inputs are unobservable, relationships to observable commodities and data points, based on historic and/or implied observations, are employed as a technique to estimate the model input values. Commodity derivatives are generally categorized in Level 2 of the fair value hierarchy; in instances where significant inputs are unobservable, they are categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||||||||
For further information on derivative instruments and hedging activities, see Note 11. | ||||||||||||||||||||||
Investments. | ||||||||||||||||||||||
• The Company's investments include direct investments in equity securities as well as investments in private equity funds, real estate funds and hedge funds, which include investments made in connection with certain employee deferred compensation plans. Direct investments are presented in the fair value hierarchy table as Principal investments and Other. Initially, the transaction price is generally considered by the Company as the exit price and is the Company's best estimate of fair value. | ||||||||||||||||||||||
After initial recognition, in determining the fair value of non-exchange-traded internally and externally managed funds, the Company generally considers the NAV of the fund provided by the fund manager to be the best estimate of fair value. For non-exchange-traded investments either held directly or held within internally managed funds, fair value after initial recognition is based on an assessment of each underlying investment, considering rounds of financing and third-party transactions, discounted cash flow analyses and market-based information, including comparable company transactions, trading multiples and changes in market outlook, among other factors. Exchange-traded direct equity investments are generally valued based on quoted prices from the exchange. | ||||||||||||||||||||||
Exchange-traded direct equity investments that are actively traded are categorized in Level 1 of the fair value hierarchy. Non-exchange-traded direct equity investments and investments in private equity and real estate funds are generally categorized in Level 3 of the fair value hierarchy. Investments in hedge funds that are redeemable at the measurement date or in the near future are categorized in Level 2 of the fair value hierarchy; otherwise, they are categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||||||||
Physical Commodities. | ||||||||||||||||||||||
• The Company trades various physical commodities, including crude oil and refined products, natural gas, base and precious metals, and agricultural products. Fair value for physical commodities is determined using observable inputs, including broker quotations and published indices. Physical commodities are categorized in Level 2 of the fair value hierarchy; in instances where significant inputs are unobservable, they are categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||||||||
Securities Available for Sale. | ||||||||||||||||||||||
• Securities available for sale are composed of U.S. government and agency securities (e.g., U.S. Treasury securities, agency-issued debt, agency mortgage pass-through securities and collateralized mortgage obligations), CMBS, Federal Family Education Loan Program (“FFELP”) student loan asset-backed securities, auto loan asset-backed securities, corporate bonds and equity securities. Actively traded U.S. Treasury securities, non-callable agency-issued debt securities and equity securities are generally categorized in Level 1 of the fair value hierarchy. Callable agency-issued debt securities, agency mortgage pass-through securities, collateralized mortgage obligations, CMBS, FFELP student loan asset-backed securities, auto loan asset-backed securities and corporate bonds are generally categorized in Level 2 of the fair value hierarchy. For further information on securities available for sale, see Note 5. | ||||||||||||||||||||||
Deposits. | ||||||||||||||||||||||
• Time Deposits. The fair value of certificates of deposit is determined using third-party quotations. These deposits are generally categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||
Commercial Paper and Other Short-Term Borrowings/Long-Term Borrowings. | ||||||||||||||||||||||
• Structured Notes. The Company issues structured notes that have coupon or repayment terms linked to the performance of debt or equity securities, indices, currencies or commodities. Fair value of structured notes is determined using valuation models for the derivative and debt portions of the notes. These models incorporate observable inputs referencing identical or comparable securities, including prices to which the notes are linked, interest rate yield curves, option volatility and currency, commodity or equity prices. Independent, external and traded prices for the notes are considered as well. The impact of the Company's own credit spreads is also included based on the Company's observed secondary bond market spreads. Most structured notes are categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||
Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase. | ||||||||||||||||||||||
• The fair value of a reverse repurchase agreement or repurchase agreement is computed using a standard cash flow discounting methodology. The inputs to the valuation include contractual cash flows and collateral funding spreads, which are estimated using various benchmarks, interest rate yield curves and option volatilities. In instances where the unobservable inputs are deemed significant, reverse repurchase agreements and repurchase agreements are categorized in Level 3 of the fair value hierarchy; otherwise, they are categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||
The following fair value hierarchy tables present information about the Company's assets and liabilities measured at fair value on a recurring basis at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis at September 30, 2013. | ||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Counterparty and Cash Collateral Netting | Balance at September 30, 2013 | ||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Assets at Fair Value | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||||||||
U.S. Treasury securities | $ | 38,453 | $ | 8 | $ | — | $ | — | $ | 38,461 | ||||||||||||
U.S. agency securities | 2,030 | 21,381 | — | — | 23,411 | |||||||||||||||||
Total U.S. government and agency securities | 40,483 | 21,389 | — | — | 61,872 | |||||||||||||||||
Other sovereign government obligations | 24,605 | 7,076 | 2 | — | 31,683 | |||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
State and municipal securities | — | 1,580 | — | — | 1,580 | |||||||||||||||||
Residential mortgage-backed securities | — | 2,525 | 90 | — | 2,615 | |||||||||||||||||
Commercial mortgage-backed securities | — | 1,343 | 150 | — | 1,493 | |||||||||||||||||
Asset-backed securities | — | 875 | 99 | — | 974 | |||||||||||||||||
Corporate bonds | — | 16,862 | 537 | — | 17,399 | |||||||||||||||||
Collateralized debt obligations | — | 263 | 1,380 | — | 1,643 | |||||||||||||||||
Loans and lending commitments | — | 9,364 | 4,098 | — | 13,462 | |||||||||||||||||
Other debt | — | 5,669 | 21 | — | 5,690 | |||||||||||||||||
Total corporate and other debt | — | 38,481 | 6,375 | — | 44,856 | |||||||||||||||||
Corporate equities(1) | 86,385 | 1,199 | 243 | — | 87,827 | |||||||||||||||||
Derivative and other contracts: | ||||||||||||||||||||||
Interest rate contracts | 2,129 | 585,689 | 2,880 | — | 590,698 | |||||||||||||||||
Credit contracts | — | 46,729 | 2,942 | — | 49,671 | |||||||||||||||||
Foreign exchange contracts | 21 | 55,992 | 129 | — | 56,142 | |||||||||||||||||
Equity contracts | 1,254 | 53,406 | 1,448 | — | 56,108 | |||||||||||||||||
Commodity contracts | 2,886 | 12,197 | 2,264 | — | 17,347 | |||||||||||||||||
Other | — | 36 | — | — | 36 | |||||||||||||||||
Netting(2) | -5,321 | -664,134 | -5,657 | -59,452 | -734,564 | |||||||||||||||||
Total derivative and other contracts | 969 | 89,915 | 4,006 | -59,452 | 35,438 | |||||||||||||||||
Investments: | ||||||||||||||||||||||
Private equity funds | — | 1 | 2,449 | — | 2,450 | |||||||||||||||||
Real estate funds | — | 6 | 1,523 | — | 1,529 | |||||||||||||||||
Hedge funds | — | 373 | 431 | — | 804 | |||||||||||||||||
Principal investments | 29 | 672 | 2,338 | — | 3,039 | |||||||||||||||||
Other | 187 | 71 | 494 | — | 752 | |||||||||||||||||
Total investments | 216 | 1,123 | 7,235 | — | 8,574 | |||||||||||||||||
Physical commodities | — | 3,408 | — | — | 3,408 | |||||||||||||||||
Total trading assets | 152,658 | 162,591 | 17,861 | -59,452 | 273,658 | |||||||||||||||||
Securities available for sale | 19,854 | 27,012 | — | — | 46,866 | |||||||||||||||||
Securities received as collateral | 15,981 | 61 | — | — | 16,042 | |||||||||||||||||
Federal funds sold and securities purchased | ||||||||||||||||||||||
under agreements to resell | — | 868 | — | — | 868 | |||||||||||||||||
Intangible assets(3) | — | — | 8 | — | 8 | |||||||||||||||||
Total assets measured at fair value | $ | 188,493 | $ | 190,532 | $ | 17,869 | $ | -59,452 | $ | 337,442 | ||||||||||||
Liabilities at Fair Value | ||||||||||||||||||||||
Deposits | $ | — | $ | 1,411 | $ | — | $ | — | $ | 1,411 | ||||||||||||
Commercial paper and other short-term borrowings | — | 1,620 | 3 | — | 1,623 | |||||||||||||||||
Trading liabilities: | ||||||||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||||||||
U.S. Treasury securities | 16,432 | — | — | — | 16,432 | |||||||||||||||||
U.S. agency securities | 3,041 | 127 | — | — | 3,168 | |||||||||||||||||
Total U.S. government and agency securities | 19,473 | 127 | — | — | 19,600 | |||||||||||||||||
Other sovereign government obligations | 21,468 | 2,375 | — | — | 23,843 | |||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
State and municipal securities | — | 32 | — | — | 32 | |||||||||||||||||
Residential mortgage-backed securities | — | — | 4 | — | 4 | |||||||||||||||||
Commercial mortgage-backed securities | — | 4 | — | — | 4 | |||||||||||||||||
Corporate bonds | — | 8,191 | 5 | — | 8,196 | |||||||||||||||||
Collateralized debt obligations | — | 6 | — | — | 6 | |||||||||||||||||
Unfunded lending commitments | — | 154 | 4 | — | 158 | |||||||||||||||||
Other debt | — | 277 | 9 | — | 286 | |||||||||||||||||
Total corporate and other debt | — | 8,664 | 22 | — | 8,686 | |||||||||||||||||
Corporate equities(1) | 31,842 | 496 | 10 | — | 32,348 | |||||||||||||||||
Derivative and other contracts: | ||||||||||||||||||||||
Interest rate contracts | 2,527 | 560,796 | 2,570 | — | 565,893 | |||||||||||||||||
Credit contracts | — | 45,344 | 2,232 | — | 47,576 | |||||||||||||||||
Foreign exchange contracts | 9 | 56,668 | 164 | — | 56,841 | |||||||||||||||||
Equity contracts | 893 | 59,261 | 3,079 | — | 63,233 | |||||||||||||||||
Commodity contracts | 3,236 | 12,505 | 1,409 | — | 17,150 | |||||||||||||||||
Other | — | 203 | 1 | — | 204 | |||||||||||||||||
Netting(2) | -5,321 | -664,134 | -5,657 | -37,617 | -712,729 | |||||||||||||||||
Total derivative and other contracts | 1,344 | 70,643 | 3,798 | -37,617 | 38,168 | |||||||||||||||||
Total trading liabilities | 74,127 | 82,305 | 3,830 | -37,617 | 122,645 | |||||||||||||||||
Obligation to return securities received as collateral | 20,829 | 70 | — | — | 20,899 | |||||||||||||||||
Securities sold under agreements to repurchase | — | 404 | 150 | — | 554 | |||||||||||||||||
Other secured financings | — | 5,885 | 260 | — | 6,145 | |||||||||||||||||
Long-term borrowings | — | 34,406 | 2,313 | — | 36,719 | |||||||||||||||||
Total liabilities measured at fair value | $ | 94,956 | $ | 126,101 | $ | 6,556 | $ | -37,617 | $ | 189,996 | ||||||||||||
_____________ | ||||||||||||||||||||||
(1) The Company holds or sells short for trading purposes equity securities issued by entities in diverse industries and of varying size. | ||||||||||||||||||||||
(2) For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Counterparty and Cash Collateral Netting.” For contracts with the same counterparty, counterparty netting among positions classified within the same level is included within that level. For further information on derivative instruments and hedging activities, see Note 11. | ||||||||||||||||||||||
(3) Amount represents mortgage servicing rights (“MSR”) accounted for at fair value. See Note 7 for further information on MSRs. | ||||||||||||||||||||||
Transfers Between Level 1 and Level 2 During the Quarter and Nine Months Ended September 30, 2013. | ||||||||||||||||||||||
For assets and liabilities that were transferred between Level 1 and Level 2 during the period, fair values are ascribed as if the assets or liabilities had been transferred as of the beginning of the period. | ||||||||||||||||||||||
In the quarter and nine months ended September 30, 2013, there were no material transfers between Level 1 and Level 2. | ||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2012. | ||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Counterparty and Cash Collateral Netting | Balance at December 31, 2012 | ||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Assets at Fair Value | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||||||||
U.S. Treasury securities | $ | 24,662 | $ | 14 | $ | — | $ | — | $ | 24,676 | ||||||||||||
U.S. agency securities | 1,451 | 27,888 | — | — | 29,339 | |||||||||||||||||
Total U.S. government and agency securities | 26,113 | 27,902 | — | — | 54,015 | |||||||||||||||||
Other sovereign government obligations | 37,669 | 5,487 | 6 | — | 43,162 | |||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
State and municipal securities | — | 1,558 | — | — | 1,558 | |||||||||||||||||
Residential mortgage-backed securities | — | 1,439 | 45 | — | 1,484 | |||||||||||||||||
Commercial mortgage-backed securities | — | 1,347 | 232 | — | 1,579 | |||||||||||||||||
Asset-backed securities | — | 915 | 109 | — | 1,024 | |||||||||||||||||
Corporate bonds | — | 18,403 | 660 | — | 19,063 | |||||||||||||||||
Collateralized debt obligations | — | 685 | 1,951 | — | 2,636 | |||||||||||||||||
Loans and lending commitments | — | 12,617 | 4,694 | — | 17,311 | |||||||||||||||||
Other debt | — | 4,457 | 45 | — | 4,502 | |||||||||||||||||
Total corporate and other debt | — | 41,421 | 7,736 | — | 49,157 | |||||||||||||||||
Corporate equities(1) | 68,072 | 1,067 | 288 | — | 69,427 | |||||||||||||||||
Derivative and other contracts: | ||||||||||||||||||||||
Interest rate contracts | 446 | 819,581 | 3,774 | — | 823,801 | |||||||||||||||||
Credit contracts | — | 63,234 | 5,033 | — | 68,267 | |||||||||||||||||
Foreign exchange contracts | 34 | 52,729 | 31 | — | 52,794 | |||||||||||||||||
Equity contracts | 760 | 37,074 | 766 | — | 38,600 | |||||||||||||||||
Commodity contracts | 4,082 | 14,256 | 2,308 | — | 20,646 | |||||||||||||||||
Other | — | 143 | — | — | 143 | |||||||||||||||||
Netting(2) | -4,740 | -883,733 | -6,947 | -72,634 | -968,054 | |||||||||||||||||
Total derivative and other contracts | 582 | 103,284 | 4,965 | -72,634 | 36,197 | |||||||||||||||||
Investments: | ||||||||||||||||||||||
Private equity funds | — | — | 2,179 | — | 2,179 | |||||||||||||||||
Real estate funds | — | 6 | 1,370 | — | 1,376 | |||||||||||||||||
Hedge funds | — | 382 | 552 | — | 934 | |||||||||||||||||
Principal investments | 185 | 83 | 2,833 | — | 3,101 | |||||||||||||||||
Other | 199 | 71 | 486 | — | 756 | |||||||||||||||||
Total investments | 384 | 542 | 7,420 | — | 8,346 | |||||||||||||||||
Physical commodities | — | 7,299 | — | — | 7,299 | |||||||||||||||||
Total trading assets | 132,820 | 187,002 | 20,415 | -72,634 | 267,603 | |||||||||||||||||
Securities available for sale | 14,466 | 25,403 | — | — | 39,869 | |||||||||||||||||
Securities received as collateral | 14,232 | 46 | — | — | 14,278 | |||||||||||||||||
Federal funds sold and securities purchased under | ||||||||||||||||||||||
agreements to resell | — | 621 | — | — | 621 | |||||||||||||||||
Intangible assets(3) | — | — | 7 | — | 7 | |||||||||||||||||
Total assets measured at fair value | $ | 161,518 | $ | 213,072 | $ | 20,422 | $ | -72,634 | $ | 322,378 | ||||||||||||
Liabilities at Fair Value | ||||||||||||||||||||||
Deposits | $ | — | $ | 1,485 | $ | — | $ | — | $ | 1,485 | ||||||||||||
Commercial paper and other short-term borrowings | — | 706 | 19 | — | 725 | |||||||||||||||||
Trading liabilities: | ||||||||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||||||||
U.S. Treasury securities | 20,098 | 21 | — | — | 20,119 | |||||||||||||||||
U.S. agency securities | 1,394 | 107 | — | — | 1,501 | |||||||||||||||||
Total U.S. government and agency securities | 21,492 | 128 | — | — | 21,620 | |||||||||||||||||
Other sovereign government obligations | 27,583 | 2,031 | — | — | 29,614 | |||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
State and municipal securities | — | 47 | — | — | 47 | |||||||||||||||||
Residential mortgage-backed securities | — | — | 4 | — | 4 | |||||||||||||||||
Corporate bonds | — | 3,942 | 177 | — | 4,119 | |||||||||||||||||
Collateralized debt obligations | — | 328 | — | — | 328 | |||||||||||||||||
Unfunded lending commitments | — | 305 | 46 | — | 351 | |||||||||||||||||
Other debt | — | 156 | 49 | — | 205 | |||||||||||||||||
Total corporate and other debt | — | 4,778 | 276 | — | 5,054 | |||||||||||||||||
Corporate equities(1) | 25,216 | 1,655 | 5 | — | 26,876 | |||||||||||||||||
Derivative and other contracts: | ||||||||||||||||||||||
Interest rate contracts | 533 | 789,715 | 3,856 | — | 794,104 | |||||||||||||||||
Credit contracts | — | 61,283 | 3,211 | — | 64,494 | |||||||||||||||||
Foreign exchange contracts | 2 | 56,021 | 390 | — | 56,413 | |||||||||||||||||
Equity contracts | 748 | 39,212 | 1,910 | — | 41,870 | |||||||||||||||||
Commodity contracts | 4,530 | 15,702 | 1,599 | — | 21,831 | |||||||||||||||||
Other | — | 54 | 7 | — | 61 | |||||||||||||||||
Netting(2) | -4,740 | -883,733 | -6,947 | -46,395 | -941,815 | |||||||||||||||||
Total derivative and other contracts | 1,073 | 78,254 | 4,026 | -46,395 | 36,958 | |||||||||||||||||
Total trading liabilities | 75,364 | 86,846 | 4,307 | -46,395 | 120,122 | |||||||||||||||||
Obligation to return securities received as collateral | 18,179 | 47 | — | — | 18,226 | |||||||||||||||||
Securities sold under agreements to repurchase | — | 212 | 151 | — | 363 | |||||||||||||||||
Other secured financings | — | 9,060 | 406 | — | 9,466 | |||||||||||||||||
Long-term borrowings | — | 41,255 | 2,789 | — | 44,044 | |||||||||||||||||
Total liabilities measured at fair value | $ | 93,543 | $ | 139,611 | $ | 7,672 | $ | -46,395 | $ | 194,431 | ||||||||||||
_____________ | ||||||||||||||||||||||
(1) The Company holds or sells short for trading purposes equity securities issued by entities in diverse industries and of varying size. | ||||||||||||||||||||||
(2) For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Counterparty and Cash Collateral Netting.” For contracts with the same counterparty, counterparty netting among positions classified within the same level is included within that level. For further information on derivative instruments and hedging activities, see Note 11. | ||||||||||||||||||||||
(3) Amount represents MSRs accounted for at fair value. See Note 7 for further information on MSRs. | ||||||||||||||||||||||
Transfers Between Level 1 and Level 2 During the Quarter Ended September 30, 2012. | ||||||||||||||||||||||
Trading assets—Derivative and other contracts and Trading liabilities—Derivative and other contracts. During the quarter ended September 30, 2012, the Company reclassified approximately $1.2 billion of derivative assets and approximately $1.5 billion of derivative liabilities from Level 2 to Level 1 as these listed derivatives became actively traded and were valued based on quoted prices from the exchange. Also during the quarter ended September 30, 2012, the Company reclassified approximately $0.5 billion of derivative assets and approximately $0.5 billion of derivative liabilities from Level 1 to Level 2 as transactions in these contracts did not occur with sufficient frequency and volume to constitute an active market. | ||||||||||||||||||||||
Transfers Between Level 1 and Level 2 During the Nine Months Ended September 30, 2012. | ||||||||||||||||||||||
Trading assets—Derivative and other contracts and Trading liabilities—Derivative and other contracts. During the nine months ended September 30, 2012, the Company reclassified approximately $2.7 billion of derivative assets and approximately $2.6 billion of derivative liabilities from Level 2 to Level 1 as these listed derivatives became actively traded and were valued based on quoted prices from the exchange. Also during the nine months ended September 30, 2012, the Company reclassified approximately $0.3 billion of derivative assets and approximately $0.3 billion of derivative liabilities from Level 1 to Level 2 as transactions in these contracts did not occur with sufficient frequency and volume to constitute an active market. | ||||||||||||||||||||||
Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis. | ||||||||||||||||||||||
The following tables present additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the quarters and nine months ended September 30, 2013 and 2012, respectively. Level 3 instruments may be hedged with instruments classified in Level 1 and Level 2. As a result, the realized and unrealized gains (losses) for assets and liabilities within the Level 3 category presented in the tables below do not reflect the related realized and unrealized gains (losses) on hedging instruments that have been classified by the Company within the Level 1 and/or Level 2 categories. | ||||||||||||||||||||||
Additionally, both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the unrealized gains (losses) during the period for assets and liabilities within the Level 3 category presented in the tables below may include changes in fair value during the period that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. | ||||||||||||||||||||||
For assets and liabilities that were transferred into Level 3 during the period, gains (losses) are presented as if the assets or liabilities had been transferred into Level 3 at the beginning of the period; similarly, for assets and liabilities that were transferred out of Level 3 during the period, gains (losses) are presented as if the assets or liabilities had been transferred out at the beginning of the period. | ||||||||||||||||||||||
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Quarter Ended September 30, 2013. | ||||||||||||||||||||||
Beginning Balance at June 30, 2013 | Total Realized and Unrealized Gains (Losses) (1) | Purchases | Sales | Issuances | Settlements | Net Transfers | Ending Balance at September 30, 2013 | Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at September 30, 2013 (2) | ||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Assets at Fair Value | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
Other sovereign government obligations | $ | 4 | $ | — | $ | 2 | -4 | $ | — | $ | — | $ | — | $ | 2 | $ | — | |||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed securities | 19 | -2 | 72 | -3 | — | — | 4 | 90 | -3 | |||||||||||||
Commercial mortgage-backed securities | 181 | -2 | 39 | -61 | — | — | -7 | 150 | 5 | |||||||||||||
Asset-backed securities | 108 | — | 13 | -23 | — | — | 1 | 99 | — | |||||||||||||
Corporate bonds | 509 | 43 | 76 | -79 | — | — | -12 | 537 | 36 | |||||||||||||
Collateralized debt obligations | 1,333 | 60 | 269 | -206 | — | -55 | -21 | 1,380 | 28 | |||||||||||||
Loans and lending commitments | 5,243 | -72 | 530 | -112 | — | -1,279 | -212 | 4,098 | -111 | |||||||||||||
Other debt | 12 | — | 14 | -5 | — | — | — | 21 | — | |||||||||||||
Total corporate and other debt | 7,405 | 27 | 1,013 | -489 | — | -1,334 | -247 | 6,375 | -45 | |||||||||||||
Corporate equities | 256 | -25 | 38 | -20 | — | — | -6 | 243 | -3 | |||||||||||||
Net derivative and other contracts(3): | ||||||||||||||||||||||
Interest rate contracts | 16 | 262 | 4 | — | -72 | 11 | 89 | 310 | 111 | |||||||||||||
Credit contracts | 685 | -259 | 41 | — | -46 | -146 | 435 | 710 | -448 | |||||||||||||
Foreign exchange contracts | -96 | 6 | — | — | — | 61 | -6 | -35 | 6 | |||||||||||||
Equity contracts | -1,284 | -309 | 102 | — | -190 | 39 | 11 | -1,631 | -429 | |||||||||||||
Commodity contracts | 781 | 45 | 4 | — | -1 | 23 | 3 | 855 | 73 | |||||||||||||
Other | -6 | — | — | — | — | 5 | — | -1 | -2 | |||||||||||||
Total net derivative and | ||||||||||||||||||||||
other contracts | 96 | -255 | 151 | — | -309 | -7 | 532 | 208 | -689 | |||||||||||||
Investments: | ||||||||||||||||||||||
Private equity funds | 2,286 | 213 | 24 | -74 | — | — | — | 2,449 | 163 | |||||||||||||
Real estate funds | 1,422 | 159 | 18 | -76 | — | — | — | 1,523 | 196 | |||||||||||||
Hedge funds | 407 | 5 | 7 | -17 | — | — | 29 | 431 | 5 | |||||||||||||
Principal investments | 2,822 | 84 | 10 | -125 | — | — | -453 | 2,338 | 71 | |||||||||||||
Other | 385 | 16 | 3 | — | — | — | 90 | 494 | 16 | |||||||||||||
Total investments | 7,322 | 477 | 62 | -292 | — | — | -334 | 7,235 | 451 | |||||||||||||
Intangible assets | 9 | — | — | — | — | -1 | — | 8 | — | |||||||||||||
Liabilities at Fair Value | ||||||||||||||||||||||
Commercial paper and other | ||||||||||||||||||||||
short-term borrowings | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3 | $ | 3 | $ | — | ||||
Trading liabilities: | ||||||||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed securities | 4 | — | — | — | — | — | — | 4 | — | |||||||||||||
Corporate bonds | 42 | -15 | -64 | 26 | — | — | -14 | 5 | -17 | |||||||||||||
Unfunded lending commitments | 8 | 4 | — | — | — | — | — | 4 | 4 | |||||||||||||
Other debt | 11 | 1 | -1 | — | — | — | — | 9 | — | |||||||||||||
Total corporate and other debt | 65 | -10 | -65 | 26 | — | — | -14 | 22 | -13 | |||||||||||||
Corporate equities | 16 | -5 | -19 | 8 | — | — | — | 10 | -9 | |||||||||||||
Securities sold under agreements to repurchase | 148 | -2 | — | — | — | — | — | 150 | -2 | |||||||||||||
Other secured financings | 256 | -5 | — | — | — | -1 | — | 260 | -5 | |||||||||||||
Long-term borrowings | 2,705 | -98 | — | — | 188 | -344 | -334 | 2,313 | -89 | |||||||||||||
___________________ | ||||||||||||||||||||||
(1) Total realized and unrealized gains (losses) are primarily included in Trading revenues in the condensed consolidated statements of income except for $477 million related to Trading assets—Investments, which is included in Investments revenues. | ||||||||||||||||||||||
(2) Amounts represent unrealized gains (losses) for the quarter ended September 30, 2013 related to assets and liabilities still outstanding at September 30, 2013. | ||||||||||||||||||||||
(3) Net derivative and other contracts represent Trading assets—Derivative and other contracts net of Trading liabilities—Derivative and other contracts. For further information on derivative instruments and hedging activities, see Note 11. | ||||||||||||||||||||||
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2013. | ||||||||||||||||||||||
Beginning Balance at December 31, 2012 | Total Realized and Unrealized Gains (Losses) (1) | Purchases | Sales | Issuances | Settlements | Net Transfers | Ending Balance at September 30, 2013 | Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at September 30, 2013(2) | ||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Assets at Fair Value | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
Other sovereign government obligations | $ | 6 | $ | — | $ | 3 | $ | -8 | $ | — | $ | — | $ | 1 | $ | 2 | $ | — | ||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed securities | 45 | 29 | 85 | -45 | — | — | -24 | 90 | 8 | |||||||||||||
Commercial mortgage-backed securities | 232 | 6 | 78 | -166 | — | — | — | 150 | 7 | |||||||||||||
Asset-backed securities | 109 | 1 | 4 | -15 | — | — | — | 99 | — | |||||||||||||
Corporate bonds | 660 | 64 | 327 | -462 | — | -12 | -40 | 537 | 15 | |||||||||||||
Collateralized debt obligations | 1,951 | 276 | 612 | -1,405 | — | -53 | -1 | 1,380 | 118 | |||||||||||||
Loans and lending commitments | 4,694 | -308 | 1,607 | -316 | — | -1,838 | 259 | 4,098 | -306 | |||||||||||||
Other debt | 45 | -3 | 15 | -36 | — | — | — | 21 | 1 | |||||||||||||
Total corporate and other debt | 7,736 | 65 | 2,728 | -2,445 | — | -1,903 | 194 | 6,375 | -157 | |||||||||||||
Corporate equities | 288 | -36 | 142 | -164 | — | — | 13 | 243 | -4 | |||||||||||||
Net derivative and other contracts(3): | ||||||||||||||||||||||
Interest rate contracts | -82 | 237 | 10 | — | -86 | 185 | 46 | 310 | 157 | |||||||||||||
Credit contracts | 1,822 | -1,133 | 184 | — | -278 | -369 | 484 | 710 | -1,187 | |||||||||||||
Foreign exchange contracts | -359 | 117 | — | — | — | 215 | -8 | -35 | 106 | |||||||||||||
Equity contracts | -1,144 | -293 | 123 | -1 | -232 | -156 | 72 | -1,631 | -369 | |||||||||||||
Commodity contracts | 709 | 90 | 40 | — | -19 | 36 | -1 | 855 | 124 | |||||||||||||
Other | -7 | -4 | — | — | — | 10 | — | -1 | -6 | |||||||||||||
Total net derivative and | ||||||||||||||||||||||
other contracts | 939 | -986 | 357 | -1 | -615 | -79 | 593 | 208 | -1,175 | |||||||||||||
Investments: | ||||||||||||||||||||||
Private equity funds | 2,179 | 432 | 96 | -258 | — | — | — | 2,449 | 409 | |||||||||||||
Real estate funds | 1,370 | 287 | 61 | -195 | — | — | — | 1,523 | 402 | |||||||||||||
Hedge funds | 552 | 5 | 46 | -154 | — | — | -18 | 431 | 6 | |||||||||||||
Principal investments | 2,833 | 96 | 106 | -286 | — | — | -411 | 2,338 | 63 | |||||||||||||
Other | 486 | 36 | 3 | -30 | — | — | -1 | 494 | 37 | |||||||||||||
Total investments | 7,420 | 856 | 312 | -923 | — | — | -430 | 7,235 | 917 | |||||||||||||
Intangible assets | 7 | 7 | — | — | — | -6 | — | 8 | 3 | |||||||||||||
Liabilities at Fair Value | ||||||||||||||||||||||
Commercial paper and other | ||||||||||||||||||||||
short-term borrowings | $ | 19 | $ | — | $ | — | $ | — | $ | — | $ | -1 | $ | -15 | $ | 3 | $ | — | ||||
Trading liabilities: | ||||||||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed securities | 4 | — | — | — | — | — | — | 4 | — | |||||||||||||
Corporate bonds | 177 | -5 | -154 | 76 | — | — | -99 | 5 | -5 | |||||||||||||
Unfunded lending commitments | 46 | 42 | — | — | — | — | — | 4 | 42 | |||||||||||||
Other debt | 49 | 13 | -31 | 2 | — | — | 2 | 9 | 6 | |||||||||||||
Total corporate and other debt | 276 | 50 | -185 | 78 | — | — | -97 | 22 | 43 | |||||||||||||
Corporate equities | 5 | -1 | -19 | 24 | — | — | -1 | 10 | -10 | |||||||||||||
Securities sold under agreements to repurchase | 151 | 1 | — | — | — | — | — | 150 | 1 | |||||||||||||
Other secured financings | 406 | 23 | — | — | 13 | -136 | — | 260 | 16 | |||||||||||||
Long-term borrowings | 2,789 | -87 | — | — | 875 | -468 | -970 | 2,313 | -89 | |||||||||||||
___________ | ||||||||||||||||||||||
(1) Total realized and unrealized gains (losses) are primarily included in Trading revenues in the condensed consolidated statements of income except for $856 million related to Trading assets—Investments, which is included in Investments revenues. | ||||||||||||||||||||||
(2) Amounts represent unrealized gains (losses) for the nine months ended September 30, 2013 related to assets and liabilities still outstanding at September 30, 2013. | ||||||||||||||||||||||
(3) Net derivative and other contracts represent Trading assets—Derivative and other contracts net of Trading liabilities—Derivative and other contracts. For further information on derivative instruments and hedging activities, see Note 11. | ||||||||||||||||||||||
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for Quarter Ended September 30, 2012. | ||||||||||||||||||||||
Beginning Balance at June 30, 2012 | Total Realized and Unrealized Gains (Losses) (1) | Purchases | Sales | Issuances | Settlements | Net Transfers | Ending Balance at September 30, 2012 | Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at September 30, 2012(2) | ||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Assets at Fair Value | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
Other sovereign government obligations | $ | 1 | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | $ | 3 | $ | — | ||||
Corporate and other debt: | ||||||||||||||||||||||
State and municipal securities | 3 | 1 | — | -2 | — | — | — | 2 | — | |||||||||||||
Residential mortgage-backed securities | 24 | 1 | 1 | -4 | — | — | -2 | 20 | -1 | |||||||||||||
Commercial mortgage-backed securities | 256 | 13 | 7 | -54 | — | -99 | 3 | 126 | 8 | |||||||||||||
Asset-backed securities | 9 | 1 | — | — | — | — | — | 10 | 1 | |||||||||||||
Corporate bonds | 745 | 50 | 86 | -157 | — | — | 33 | 757 | 51 | |||||||||||||
Collateralized debt obligations | 1,457 | 92 | 569 | -200 | — | — | 113 | 2,031 | 127 | |||||||||||||
Loans and lending commitments | 7,794 | 183 | 1,098 | -366 | — | -674 | -210 | 7,825 | 148 | |||||||||||||
Other debt | 13 | — | 12 | -2 | — | — | -12 | 11 | — | |||||||||||||
Total corporate and other debt | 10,301 | 341 | 1,773 | -785 | — | -773 | -75 | 10,782 | 334 | |||||||||||||
Corporate equities | 482 | 9 | 48 | -95 | — | — | -73 | 371 | 9 | |||||||||||||
Net derivative and other contracts(3): | ||||||||||||||||||||||
Interest rate contracts | -172 | -282 | 5 | — | -10 | 187 | 173 | -99 | -76 | |||||||||||||
Credit contracts | 3,842 | -791 | 22 | — | -17 | -266 | -167 | 2,623 | -870 | |||||||||||||
Foreign exchange contracts | -224 | -101 | — | — | — | -12 | -74 | -411 | -102 | |||||||||||||
Equity contracts | -1,173 | -2 | 126 | -12 | -57 | 32 | -249 | -1,335 | -8 | |||||||||||||
Commodity contracts | 937 | -84 | 11 | — | -3 | -5 | -88 | 768 | -28 | |||||||||||||
Other | -27 | — | — | — | — | 6 | 18 | -3 | — | |||||||||||||
Total net derivative and other contracts | 3,183 | -1,260 | 164 | -12 | -87 | -58 | -387 | 1,543 | -1,084 | |||||||||||||
Investments: | ||||||||||||||||||||||
Private equity funds | 2,005 | 162 | 127 | -48 | — | — | — | 2,246 | 153 | |||||||||||||
Real estate funds | 1,326 | 44 | 20 | -36 | — | — | — | 1,354 | 30 | |||||||||||||
Hedge funds | 533 | 19 | 42 | -46 | — | — | 16 | 564 | 14 | |||||||||||||
Principal investments | 3,047 | 1 | 33 | -50 | — | — | -5 | 3,026 | 3 | |||||||||||||
Other | 543 | 4 | 11 | -9 | — | — | -73 | 476 | 5 | |||||||||||||
Total investments | 7,454 | 230 | 233 | -189 | — | — | -62 | 7,666 | 205 | |||||||||||||
Securities received as collateral | — | — | — | — | — | — | 4 | 4 | — | |||||||||||||
Intangible assets | 8 | — | — | — | — | -2 | — | 6 | — | |||||||||||||
Liabilities at Fair Value | ||||||||||||||||||||||
Commercial paper and other short-term borrowings | $ | 2 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 12 | $ | 14 | $ | — | ||||
Trading liabilities: | ||||||||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed securities | 4 | — | — | — | — | — | — | 4 | — | |||||||||||||
Corporate bonds | 127 | -26 | -116 | 56 | — | — | -2 | 91 | -45 | |||||||||||||
Collateralized debt obligations | 1 | — | — | 1 | — | — | -1 | 1 | — | |||||||||||||
Unfunded lending commitments | 51 | -11 | — | — | — | — | — | 62 | -11 | |||||||||||||
Other debt | 63 | 2 | -6 | — | — | — | — | 55 | 2 | |||||||||||||
Total corporate and other debt | 246 | -35 | -122 | 57 | — | — | -3 | 213 | -54 | |||||||||||||
Corporate equities | 47 | 26 | -21 | — | — | — | 12 | 12 | -3 | |||||||||||||
Obligation to return securities received | ||||||||||||||||||||||
as collateral | — | — | — | — | — | — | 20 | 20 | — | |||||||||||||
Securities sold under agreements to repurchase | 185 | -13 | — | — | — | — | — | 198 | -13 | |||||||||||||
Other secured financings | 470 | -22 | — | — | — | -76 | — | 416 | -22 | |||||||||||||
Long-term borrowings | 2,210 | -215 | — | — | 259 | -223 | -7 | 2,454 | -231 | |||||||||||||
___________ | ||||||||||||||||||||||
(1) Total realized and unrealized gains (losses) are primarily included in Trading revenues in the condensed consolidated statements of income except for $230 million related to Trading assets—Investments, which is included in Investments revenues. | ||||||||||||||||||||||
(2) Amounts represent unrealized gains (losses) for the quarter ended September 30, 2012 related to assets and liabilities still outstanding at September 30, 2012. | ||||||||||||||||||||||
(3) Net derivative and other contracts represent Trading assets—Derivative and other contracts net of Trading liabilities—Derivative and other contracts. For further information on derivative instruments and hedging activities, see Note 11. | ||||||||||||||||||||||
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2012. | ||||||||||||||||||||||
Beginning Balance at December 31, 2011 | Total Realized and Unrealized Gains (Losses) (1) | Purchases | Sales | Issuances | Settlements | Net Transfers | Ending Balance at September 30, 2012 | Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at September 30, 2012(2) | ||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Assets at Fair Value | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
U.S. agency securities | $ | 8 | $ | — | $ | — | $ | -7 | $ | — | $ | — | $ | -1 | $ | — | $ | — | ||||
Other sovereign government obligations | 119 | — | 2 | -118 | — | — | — | 3 | — | |||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
State and municipal securities | — | 2 | — | -3 | — | — | 3 | 2 | — | |||||||||||||
Residential mortgage-backed securities | 494 | -24 | 4 | -267 | — | — | -187 | 20 | -36 | |||||||||||||
Commercial mortgage-backed securities | 134 | 36 | 123 | -65 | — | -100 | -2 | 126 | 28 | |||||||||||||
Asset-backed securities | 31 | 1 | 9 | -31 | — | — | — | 10 | — | |||||||||||||
Corporate bonds | 675 | 8 | 367 | -314 | — | — | 21 | 757 | -1 | |||||||||||||
Collateralized debt obligations | 980 | 193 | 1,215 | -321 | — | — | -36 | 2,031 | 147 | |||||||||||||
Loans and lending commitments | 9,590 | 54 | 2,592 | -2,205 | — | -2,019 | -187 | 7,825 | -144 | |||||||||||||
Other debt | 128 | 15 | 8 | -140 | — | — | — | 11 | 9 | |||||||||||||
Total corporate and other debt | 12,032 | 285 | 4,318 | -3,346 | — | -2,119 | -388 | 10,782 | 3 | |||||||||||||
Corporate equities | 417 | -2 | 153 | -184 | — | — | -13 | 371 | 3 | |||||||||||||
Net derivative and other contracts(3): | ||||||||||||||||||||||
Interest rate contracts | 420 | -338 | 98 | — | -15 | 7 | -271 | -99 | -85 | |||||||||||||
Credit contracts | 5,814 | -1,733 | 46 | — | -421 | -533 | -550 | 2,623 | -2,048 | |||||||||||||
Foreign exchange contracts | 43 | -163 | — | — | — | -142 | -149 | -411 | -221 | |||||||||||||
Equity contracts | -1,234 | 156 | 272 | -5 | -122 | -205 | -197 | -1,335 | 143 | |||||||||||||
Commodity contracts | 570 | 152 | 17 | — | -8 | 29 | 8 | 768 | 145 | |||||||||||||
Other | -1,090 | 59 | — | — | — | 238 | 790 | -3 | 56 | |||||||||||||
Total net derivative and other contracts | 4,523 | -1,867 | 433 | -5 | -566 | -606 | -369 | 1,543 | -2,010 | |||||||||||||
Investments: | ||||||||||||||||||||||
Private equity funds | 1,936 | 176 | 271 | -138 | — | — | 1 | 2,246 | 134 | |||||||||||||
Real estate funds | 1,213 | 107 | 137 | -104 | — | — | 1 | 1,354 | 179 | |||||||||||||
Hedge funds | 696 | 26 | 61 | -135 | — | — | -84 | 564 | 19 | |||||||||||||
Principal investments | 2,937 | 25 | 267 | -199 | — | — | -4 | 3,026 | -6 | |||||||||||||
Other | 501 | -16 | 40 | -10 | — | — | -39 | 476 | -15 | |||||||||||||
Total investments | 7,283 | 318 | 776 | -586 | — | — | -125 | 7,666 | 311 | |||||||||||||
Physical commodities | 46 | — | — | — | — | -46 | — | — | — | |||||||||||||
Securities received as collateral | — | — | — | — | — | — | 4 | 4 | — | |||||||||||||
Intangible assets | 133 | -40 | — | -83 | — | -4 | — | 6 | -6 | |||||||||||||
Liabilities at Fair Value | ||||||||||||||||||||||
Commercial paper and other short-term borrowings | $ | 2 | $ | -2 | $ | — | $ | — | $ | — | $ | -2 | $ | 12 | $ | 14 | $ | -1 | ||||
Trading liabilities: | ||||||||||||||||||||||
Other sovereign government obligations | 8 | — | -8 | — | — | — | — | — | — | |||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed securities | 355 | -4 | -355 | — | — | — | — | 4 | -4 | |||||||||||||
Corporate bonds | 219 | -44 | -254 | 119 | — | — | -37 | 91 | -53 | |||||||||||||
Collateralized debt obligations | — | — | — | 1 | — | — | — | 1 | — | |||||||||||||
Unfunded lending commitments | 85 | 23 | — | — | — | — | — | 62 | 23 | |||||||||||||
Other debt | 73 | 3 | — | 40 | — | -55 | — | 55 | 5 | |||||||||||||
Total corporate and other debt | 732 | -22 | -609 | 160 | — | -55 | -37 | 213 | -29 | |||||||||||||
Corporate equities | 1 | 2 | -22 | 15 | — | — | 20 | 12 | -2 | |||||||||||||
Obligation to return securities received as collateral | — | — | — | — | — | — | 20 | 20 | — | |||||||||||||
Securities sold under agreements to repurchase | 340 | -10 | — | — | — | — | -152 | 198 | -10 | |||||||||||||
Other secured financings | 570 | -33 | — | — | 55 | -220 | -22 | 416 | -33 | |||||||||||||
Long-term borrowings | 1,603 | -444 | — | — | 585 | -181 | 3 | 2,454 | -429 | |||||||||||||
____________ | ||||||||||||||||||||||
(1) Total realized and unrealized gains (losses) are primarily included in Trading revenues in the condensed consolidated statements of income except for $318 million related to Trading assets—Investments, which is included in Investments revenues. | ||||||||||||||||||||||
(2) Amounts represent unrealized gains (losses) for the nine months ended September 30, 2012 related to assets and liabilities still outstanding at September 30, 2012. | ||||||||||||||||||||||
(3) Net derivative and other contracts represent Trading assets—Derivative and other contracts net of Trading liabilities—Derivative and other contracts. For further information on derivative instruments and hedging activities, see Note 11. | ||||||||||||||||||||||
Quantitative Information about and Sensitivity of Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||
The disclosures below provide information on the valuation techniques, significant unobservable inputs and their ranges and averages for each major category of assets and liabilities measured at fair value on a recurring basis with a significant Level 3 balance. The level of aggregation and breadth of products cause the range of inputs to be wide and not evenly distributed across the inventory. Further, the range of unobservable inputs may differ across firms in the financial services industry because of diversity in the types of products included in each firm's inventory. The following disclosures also include qualitative information on the sensitivity of the fair value measurements to changes in the significant unobservable inputs. | ||||||||||||||||||||||
At September 30, 2013. | ||||||||||||||||||||||
Balance at | ||||||||||||||||||||||
September 30, | ||||||||||||||||||||||
2013 | ||||||||||||||||||||||
(dollars | Significant Unobservable Input(s) / | |||||||||||||||||||||
in | Valuation | Sensitivity of the Fair Value to Changes | ||||||||||||||||||||
millions) | Technique(s) | in the Unobservable Inputs | Range(1) | Averages(2) | ||||||||||||||||||
Assets | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed | ||||||||||||||||||||||
securities | $ | 90 | Comparable pricing | Comparable bond price / (A) | 40 to 100 points | 89 points | ||||||||||||||||
Commercial mortgage-backed | ||||||||||||||||||||||
securities | 150 | Comparable pricing | Comparable bond price / (A) | 40 to 96 points | 72 points | |||||||||||||||||
Asset-backed securities | 99 | Discounted cash flow | Discount rate / (C) | 32% | 32% | |||||||||||||||||
Corporate bonds | 537 | Comparable pricing | Comparable bond price / (A) | 2 to 151 points | 68 points | |||||||||||||||||
Collateralized debt obligations | 1,380 | Comparable pricing(6) | Comparable bond price / (A) | 18 to 97 points | 68 points | |||||||||||||||||
Correlation model | Credit correlation / (B) | 28 to 50 % | 45% | |||||||||||||||||||
Loans and lending commitments | 4,098 | Corporate loan model | Credit spread / (C) | 42 to 905 basis points | 268 basis points | |||||||||||||||||
Margin loan model | Credit spread / (C)(D) | 16 to 300 basis points | 197 basis points | |||||||||||||||||||
Volatility skew / (C)(D) | -2% | -2% | ||||||||||||||||||||
Comparable bond price / (A)(D) | 80 to 120 points | 100 points | ||||||||||||||||||||
Option model | At the money volatility / (A) | 31% | 31% | |||||||||||||||||||
Comparable pricing(6) | Comparable loan price / (A) | 0 to 158 points | 76 points | |||||||||||||||||||
Corporate equities(3) | 243 | Net asset value(6) | Discount to net asset value / (C) | 0 to 93 % | 49% | |||||||||||||||||
Comparable pricing | Comparable equity price / (A) | 0 to 100 % | 50% | |||||||||||||||||||
Comparable pricing | Comparable price / (A) | 0 to 100 points | 44 points | |||||||||||||||||||
Market approach | EBITDA multiple / (A) | 5 to 9 times | 7 times | |||||||||||||||||||
Net derivative and other contracts: | ||||||||||||||||||||||
Interest rate contracts | 310 | Option model | Interest rate volatility concentration | |||||||||||||||||||
liquidity multiple / (C)(D) | 0 to 7 times | 2 times | ||||||||||||||||||||
Comparable bond price / (A)(D) | 5 to 99 points | 52 points / 52 points (4) | ||||||||||||||||||||
Interest rate - Foreign exchange | ||||||||||||||||||||||
correlation / (A)(D) | 2 to 63 % | 37% / 44% (4) | ||||||||||||||||||||
Interest rate volatility skew / (A)(D) | 24 to 51 % | 43% / 35% (4) | ||||||||||||||||||||
Interest rate quanto correlation / (A)(D) | -22 to 33 % | -4% / -17% (4) | ||||||||||||||||||||
Interest rate curve correlation / (A)(D) | 35 to 92 % | 72% / 79% (4) | ||||||||||||||||||||
Inflation volatility / (A)(D) | 77 to 83 % | 80% / 79% (4) | ||||||||||||||||||||
Credit contracts | 710 | Comparable pricing | Cash synthetic basis / (C)(D) | 2 to 5 points | 4 points | |||||||||||||||||
Comparable bond price / (C)(D) | 0 to 80 points | 24 points | ||||||||||||||||||||
Correlation model(6) | Credit correlation / (B) | 27 to 91 % | 52% | |||||||||||||||||||
Foreign exchange contracts(5) | -35 | Option model | Comparable bond price / (A)(D) | 5 to 99 points | 52 points / 52 points (4) | |||||||||||||||||
Interest rate quanto correlation / (A)(D) | -22 to 33 % | -4% / -17% (4) | ||||||||||||||||||||
Interest rate curve correlation / (A)(D) | 35 to 92 % | 72% / 79% (4) | ||||||||||||||||||||
Interest rate - Foreign exchange correlation | ||||||||||||||||||||||
/ (A)(D) | 2 to 63 % | 37% / 44% (4) | ||||||||||||||||||||
Interest rate volatility skew / (A)(D) | 24 to 51 % | 43% / 35% (4) | ||||||||||||||||||||
Interest rate curve / (A)(D) | 1% | 1% / 1% (4) | ||||||||||||||||||||
Equity contracts(5) | -1,631 | Option model | At the money volatility / (A)(D) | 18 to 44 % | 31% | |||||||||||||||||
Volatility skew / (C)(D) | -2 to 0 % | -1% | ||||||||||||||||||||
Equity - Equity correlation / (C)(D) | 40 to 99 % | 71% | ||||||||||||||||||||
Equity - Foreign exchange correlation / (C)(D) | -50 to -11 % | -22% | ||||||||||||||||||||
Equity - Interest rate correlation / (C)(D) | 3 to 70 % | 40% / 36% (4) | ||||||||||||||||||||
Commodity contracts | 855 | Option model | Forward power price / (C)(D) | $10 to $108 per | $38 per | |||||||||||||||||
Megawatt hour | Megawatt hour | |||||||||||||||||||||
Commodity volatility / (A)(D) | 11 to 28 % | 13% | ||||||||||||||||||||
Cross commodity correlation / (C)(D) | 43 to 98 % | 97% | ||||||||||||||||||||
Investments(3): | ||||||||||||||||||||||
Principal investments | 2,338 | Discounted cash flow | Implied weighted average cost of capital / (C)(D) | 9 to 12 % | 11% | |||||||||||||||||
Exit multiple / (A)(D) | 7 to 9 times | 8 times | ||||||||||||||||||||
Discounted cash flow(6) | Capitalization rate / (C)(D) | 6 to 11 % | 7% | |||||||||||||||||||
Equity discount rate / (C)(D) | 10 to 30 % | 22% | ||||||||||||||||||||
Market approach | EBITDA multiple / (A) | 4 to 16 times | 9 times | |||||||||||||||||||
Other | 494 | Discounted cash flow | Implied weighted average cost of capital / (C)(D) | 10% | 10% | |||||||||||||||||
Exit multiple / (A)(D) | 7 times | 7 times | ||||||||||||||||||||
Market approach(6) | EBITDA multiple / (A) | 8 to 9 times | 9 times | |||||||||||||||||||
Liabilities | ||||||||||||||||||||||
Trading liabilities: | ||||||||||||||||||||||
Securities sold under agreements | ||||||||||||||||||||||
to repurchase | $ | 150 | Discounted cash flow | Funding spread / (A) | 134 to 136 basis points | 135 basis points | ||||||||||||||||
Other secured financings | 260 | Comparable pricing(6) | Comparable bond price / (A) | 99 to 102 points | 99 points | |||||||||||||||||
Discounted cash flow | Funding spread / (A) | 136 basis points | 136 basis points | |||||||||||||||||||
Long-term borrowings | 2,313 | Option model | At the money volatility / (A)(D) | 22 to 33 % | 27% | |||||||||||||||||
Volatility skew / (A)(D) | -1 to 0 % | 0% | ||||||||||||||||||||
Equity - Equity correlation / (A)(D) | 50 to 97 % | 68% | ||||||||||||||||||||
Equity - Foreign exchange correlation / (A)(D) | -70 to 17 % | -17% | ||||||||||||||||||||
___________________ | ||||||||||||||||||||||
EBITDA - Earnings before interest, taxes, depreciation and amortization | ||||||||||||||||||||||
(1) The ranges of significant unobservable inputs are represented in points, percentages, basis points, times or megawatt hours. Points are a percentage of par; for example, 96 points would be 96% of par. A basis point equals 1/100th of 1%; for example, 905 basis points would equal 9.05%. | ||||||||||||||||||||||
(2) Amounts represent weighted averages except where simple averages and the median of the inputs are provided (see footnote 4 below). Weighted averages are calculated by weighting each input by the fair value of the respective financial instruments except for long-term borrowings and derivative instruments where inputs are weighted by risk. | ||||||||||||||||||||||
(3) Investments in funds measured using an unadjusted NAV are excluded. | ||||||||||||||||||||||
(4) The data structure of the significant unobservable inputs used in valuing Interest rate contracts, Foreign exchange contracts and certain Equity contracts may be in a multi-dimensional form, such as a curve or surface, with risk distributed across the structure. Therefore, a simple average and median, together with the range of data inputs, may be more appropriate measurements than a single point weighted average. | ||||||||||||||||||||||
(5) Includes derivative contracts with multiple risks (i.e., hybrid products). | ||||||||||||||||||||||
(6) This is the predominant valuation technique for this major asset or liability class. | ||||||||||||||||||||||
Sensitivity of the fair value to changes in the unobservable inputs: | ||||||||||||||||||||||
(A) Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement. | ||||||||||||||||||||||
(B) Significant changes in credit correlation may result in a significantly higher or lower fair value measurement. Increasing (decreasing) correlation drives a redistribution of risk within the capital structure such that junior tranches become less (more) risky and senior tranches become more (less) risky. | ||||||||||||||||||||||
(C) Significant increase (decrease) in the unobservable input in isolation would result in a significantly lower (higher) fair value measurement. | ||||||||||||||||||||||
(D) There are no predictable relationships between the significant unobservable inputs. | ||||||||||||||||||||||
At December 31, 2012. | ||||||||||||||||||||||
Balance at | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2012 | ||||||||||||||||||||||
(dollars | Significant Unobservable Input(s) / | |||||||||||||||||||||
in | Valuation | Sensitivity of the Fair Value to Changes | Weighted | |||||||||||||||||||
millions) | Technique(s) | in the Unobservable Inputs | Range(1) | Average | ||||||||||||||||||
Assets | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Commercial mortgage-backed | ||||||||||||||||||||||
securities | $ | 232 | Comparable pricing | Comparable bond price / (A) | 46 to 100 points | 76 points | ||||||||||||||||
Asset-backed securities | 109 | Discounted cash flow | Discount rate / (C) | 21% | 21% | |||||||||||||||||
Corporate bonds | 660 | Comparable pricing | Comparable bond price / (A) | 0 to 143 points | 24 points | |||||||||||||||||
Collateralized debt obligations | 1,951 | Comparable pricing | Comparable bond price / (A) | 15 to 88 points | 59 points | |||||||||||||||||
Correlation model | Credit correlation / (B) | 15 to 45 % | 40% | |||||||||||||||||||
Loans and lending commitments | 4,694 | Corporate loan model | Credit spread / (C) | 17 to 1,004 basis points | 281 basis points | |||||||||||||||||
Comparable pricing | Comparable bond price / (A) | 80 to 120 points | 104 points | |||||||||||||||||||
Comparable pricing | Comparable loan price / (A) | 55 to 100 points | 88 points | |||||||||||||||||||
Corporate equities(2) | 288 | Net asset value | Discount to net asset value / (C) | 0 to 37 % | 8% | |||||||||||||||||
Comparable pricing | Discount to comparable equity price / (C) | 0 to 27 points | 14 points | |||||||||||||||||||
Market approach | EBITDA multiple / (A) | 6 times | 6 times | |||||||||||||||||||
Net derivative and other contracts: | ||||||||||||||||||||||
Interest rate contracts | -82 | Option model | Interest rate volatility concentration | See (3) | ||||||||||||||||||
liquidity multiple / (C)(D) | 0 to 8 times | |||||||||||||||||||||
Comparable bond price / (A)(D) | 5 to 98 points | |||||||||||||||||||||
Interest rate - Foreign exchange | ||||||||||||||||||||||
correlation / (A)(D) | 2 to 63 % | |||||||||||||||||||||
Interest rate volatility skew / (A)(D) | 9 to 95 % | |||||||||||||||||||||
Interest rate quanto correlation / (A)(D) | -53 to 33 % | |||||||||||||||||||||
Interest rate curve correlation / (A)(D) | 48 to 99 % | |||||||||||||||||||||
Inflation volatility / (A)(D) | 49 to 100 % | |||||||||||||||||||||
Discounted cash flow | Forward commercial paper rate-LIBOR basis / (A) | -18 to 95 basis points | ||||||||||||||||||||
Credit contracts | 1,822 | Comparable pricing | Cash synthetic basis / (C) | 2 to 14 points | See (4) | |||||||||||||||||
Comparable bond price / (C) | 0 to 80 points | |||||||||||||||||||||
Correlation model | Credit correlation / (B) | 14 to 94 % | ||||||||||||||||||||
Foreign exchange contracts(5) | -359 | Option model | Comparable bond price / (A)(D) | 5 to 98 points | See (6) | |||||||||||||||||
Interest rate quanto correlation / (A)(D) | -53 to 33 % | |||||||||||||||||||||
Interest rate - Credit spread correlation / (A)(D) | -59 to 65 % | |||||||||||||||||||||
Interest rate - Foreign exchange correlation | ||||||||||||||||||||||
/ (A)(D) | 2 to 63 % | |||||||||||||||||||||
Interest rate volatility skew / (A)(D) | 9 to 95 % | |||||||||||||||||||||
Equity contracts(5) | -1,144 | Option model | At the money volatility / (C)(D) | 7 to 24 % | See (7) | |||||||||||||||||
Volatility skew / (C)(D) | -2 to 0 % | |||||||||||||||||||||
Equity - Equity correlation / (C)(D) | 40 to 96 % | |||||||||||||||||||||
Equity - Foreign exchange correlation / (C)(D) | -70 to 38 % | |||||||||||||||||||||
Equity - Interest rate correlation / (C)(D) | 18 to 65 % | |||||||||||||||||||||
Commodity contracts | 709 | Option model | Forward power price / (C)(D) | $28 to $84 per | ||||||||||||||||||
Megawatt hour | ||||||||||||||||||||||
Commodity volatility / (A)(D) | 17 to 29 % | |||||||||||||||||||||
Cross commodity correlation / (C)(D) | 43 to 97 % | |||||||||||||||||||||
Investments(2): | ||||||||||||||||||||||
Principal investments | 2,833 | Discounted cash flow | Implied weighted average cost of capital / (C)(D) | 8 to 15 % | 9% | |||||||||||||||||
Exit multiple / (A)(D) | 5 to 10 times | 9 times | ||||||||||||||||||||
Discounted cash flow | Capitalization rate / (C)(D) | 6 to 10 % | 7% | |||||||||||||||||||
Equity discount rate / (C)(D) | 15 to 35 % | 23% | ||||||||||||||||||||
Market approach | EBITDA multiple / (A) | 3 to 17 times | 10 times | |||||||||||||||||||
Other | 486 | Discounted cash flow | Implied weighted average cost of capital / (C)(D) | 11% | 11% | |||||||||||||||||
Exit multiple / (A)(D) | 6 times | 6 times | ||||||||||||||||||||
Market approach | EBITDA multiple / (A) | 6 to 8 times | 7 times | |||||||||||||||||||
Liabilities | ||||||||||||||||||||||
Trading liabilities: | ||||||||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Corporate bonds | $ | 177 | Comparable pricing | Comparable bond price / (A) | 0 to 150 points | 50 points | ||||||||||||||||
Securities sold under agreements | ||||||||||||||||||||||
to repurchase | 151 | Discounted cash flow | Funding spread / (A) | 110 to 184 basis points | 166 basis points | |||||||||||||||||
Other secured financings | 406 | Comparable pricing | Comparable bond price / (A) | 55 to 139 points | 102 points | |||||||||||||||||
Discounted cash flow | Funding spread / (A) | 183 to 186 basis points | 184 basis points | |||||||||||||||||||
Long-term borrowings | 2,789 | Option model | At the money volatility / (A)(D) | 20 to 24 % | 24% | |||||||||||||||||
Volatility skew / (A)(D) | -1 to 0 % | 0% | ||||||||||||||||||||
Equity - Equity correlation / (A)(D) | 50 to 90 % | 77% | ||||||||||||||||||||
Equity - Foreign exchange correlation / (A)(D) | -70 to 36 % | -15% | ||||||||||||||||||||
________________ | ||||||||||||||||||||||
(1) The ranges of significant unobservable inputs are represented in points, percentages, basis points, times or megawatt hours. Points are a percentage of par; for example, 100 points would be 100% of par. A basis point equals 1/100th of 1%; for example, 1,004 basis points would equal 10.04%. | ||||||||||||||||||||||
(2) Investments in funds measured using an unadjusted NAV are excluded. | ||||||||||||||||||||||
(3) See Note 4 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K for a qualitative discussion of the wide unobservable input ranges for comparable bond prices, interest rate volatility skew, interest rate quanto correlation and forward commercial paper rate–LIBOR basis. | ||||||||||||||||||||||
(4) See Note 4 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K for a qualitative discussion of the wide unobservable input ranges for comparable bond prices and credit correlation. | ||||||||||||||||||||||
(5) Includes derivative contracts with multiple risks (i.e., hybrid products). | ||||||||||||||||||||||
(6) See Note 4 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K for a qualitative discussion of the wide unobservable input ranges for comparable bond prices, interest rate quanto correlation, interest rate-credit spread correlation and interest rate volatility skew. | ||||||||||||||||||||||
(7) See Note 4 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K for a qualitative discussion of the wide unobservable input range for equity-foreign exchange correlation. | ||||||||||||||||||||||
Sensitivity of the fair value to changes in the unobservable inputs: | ||||||||||||||||||||||
(A) Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement. | ||||||||||||||||||||||
(B) Significant changes in credit correlation may result in a significantly higher or lower fair value measurement. Increasing (decreasing) correlation drives a redistribution of risk within the capital structure such that junior tranches become less (more) risky and senior tranches become more (less) risky. | ||||||||||||||||||||||
(C) Significant increase (decrease) in the unobservable input in isolation would result in a significantly lower (higher) fair value measurement. | ||||||||||||||||||||||
(D) There are no predictable relationships between the significant unobservable inputs. | ||||||||||||||||||||||
The following provides a description of significant unobservable inputs included in the September 30, 2013 and December 31, 2012 tables above for all major categories of assets and liabilities: | ||||||||||||||||||||||
Comparable bond price – a pricing input used when prices for the identical instrument are not available. Significant subjectivity may be involved when fair value is determined using pricing data available for comparable instruments. Valuation using comparable instruments can be done by calculating an implied yield (or spread over a liquid benchmark) from the price of a comparable bond, then adjusting that yield (or spread) to derive a value for the bond. The adjustment to yield (or spread) should account for relevant differences in the bonds such as maturity or credit quality. Alternatively, a price-to-price basis can be assumed between the comparable instrument and bond being valued in order to establish the value of the bond. Additionally, as the probability of default increases for a given bond (i.e., as the bond becomes more distressed), the valuation of that bond will increasingly reflect its expected recovery level assuming default. The decision to use price-to-price or yield/spread comparisons largely reflects trading market convention for the financial instruments in question. Price-to-price comparisons are primarily employed for CMBS, CDOs, mortgage loans and distressed corporate bonds. Implied yield (or spread over a liquid benchmark) is utilized predominately for non-distressed corporate bonds, loans and credit contracts. | ||||||||||||||||||||||
Correlation – a pricing input where the payoff is driven by more than one underlying risk. Correlation is a measure of the relationship between the movements of two variables (i.e., how the change in one variable influences a change in the other variable). Credit correlation, for example, is the factor that describes the relationship between the probability of individual entities to default on obligations and the joint probability of multiple entities to default on obligations. | ||||||||||||||||||||||
Credit spread – the difference in yield between different securities due to differences in credit quality. The credit spread reflects the additional net yield an investor can earn from a security with more credit risk relative to one with less credit risk. The credit spread of a particular security is often quoted in relation to the yield on a credit risk-free benchmark security or reference rate, typically either U.S. Treasury or LIBOR. | ||||||||||||||||||||||
Volatility skew – the measure of the difference in implied volatility for options with identical underliers and expiry dates but with different strikes. The implied volatility for an option with a strike price that is above or below the current price of an underlying asset will typically deviate from the implied volatility for an option with a strike price equal to the current price of that same underlying asset. | ||||||||||||||||||||||
Volatility – the measure of the variability in possible returns for an instrument given how much that instrument changes in value over time. Volatility is a pricing input for options and, generally, the lower the volatility, the less risky the option. The level of volatility used in the valuation of a particular option depends on a number of factors, including the nature of the risk underlying that option (e.g., the volatility of a particular underlying equity security may be significantly different from that of a particular underlying commodity index), the tenor and the strike price of the option. | ||||||||||||||||||||||
EBITDA multiple / Exit multiple – is the Enterprise Value to EBITDA ratio, where the Enterprise Value is the aggregate value of equity and debt minus cash and cash equivalents. The EBITDA multiple reflects the value of the company in terms of its full-year EBITDA, whereas the exit multiple reflects the value of the company in terms of its full year expected EBITDA at exit. Either multiple allows comparison between companies from an operational perspective as the effect of capital structure, taxation and depreciation/amortization is excluded. | ||||||||||||||||||||||
Forward commercial paper rate–LIBOR basis – the basis added to the LIBOR rate when the commercial paper yield is expressed as a spread over the LIBOR rate. The basis to LIBOR is dependent on a number of factors, including, but not limited to, collateralization of the commercial paper, credit rating of the issuer, and the supply of commercial paper. The basis may become negative, i.e., the return for highly-rated commercial paper, such as asset-backed commercial paper, may be less than LIBOR. | ||||||||||||||||||||||
Cash synthetic basis – the measure of the price differential between cash financial instruments (“cash instruments”) and their synthetic derivative-based equivalents (“synthetic instruments”). The range disclosed in the table above signifies the number of points by which the synthetic bond equivalent price is higher than the quoted price of the underlying cash bonds. | ||||||||||||||||||||||
Interest rate curve – the term structure of interest rates (relationship between interest rates and the time to maturity) and a market's measure of future interest rates at the time of observation. An interest rate curve is used to set interest rate derivative cash flows and is a pricing input used in discounting of any OTC derivative cash flow. | ||||||||||||||||||||||
Implied weighted average cost of capital (“WACC”) – the WACC implied by the current value of equity in a discounted cash flow model. The model assumes that the cash flow assumptions, including projections, are fully reflected in the current equity value while the debt to equity ratio is held constant. The WACC theoretically represents the required rate of return to debt and equity investors, respectively. | ||||||||||||||||||||||
Capitalization rate – the ratio between net operating income produced by an asset and its market value at the projected disposition date. | ||||||||||||||||||||||
Funding spread – the difference between the general collateral rate (which refers to the rate applicable to a broad class of U.S. Treasury issuances) and the specific collateral rate (which refers to the rate applicable to a specific type of security pledged as collateral, such as a municipal bond). Repurchase agreements are discounted based on collateral curves. The curves are constructed as spreads over the corresponding overnight index swap (“OIS”)/ LIBOR curves, with the short end of the curve representing spreads over the corresponding OIS curves and the long end of the curve representing spreads over LIBOR. | ||||||||||||||||||||||
Fair Value of Investments that Calculate Net Asset Value. | ||||||||||||||||||||||
The Company's Investments measured at fair value were $8,574 million and $8,346 million at September 30, 2013 and December 31, 2012, respectively. The following table presents information solely about the Company's investments in private equity funds, real estate funds and hedge funds measured at fair value based on NAV at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||
At September 30, 2013 | At December 31, 2012 | |||||||||||||||||||||
Unfunded | Unfunded | |||||||||||||||||||||
Fair Value | Commitment | Fair Value | Commitment | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Private equity funds | $ | 2,450 | $ | 577 | $ | 2,179 | $ | 644 | ||||||||||||||
Real estate funds | 1,529 | 149 | 1,376 | 221 | ||||||||||||||||||
Hedge funds(1): | ||||||||||||||||||||||
Long-short equity hedge funds | 466 | ─ | 475 | ─ | ||||||||||||||||||
Fixed income/credit-related hedge funds | 71 | ─ | 86 | ─ | ||||||||||||||||||
Event-driven hedge funds | 39 | ─ | 52 | ─ | ||||||||||||||||||
Multi-strategy hedge funds | 228 | 3 | 321 | 3 | ||||||||||||||||||
Total | $ | 4,783 | $ | 729 | $ | 4,489 | $ | 868 | ||||||||||||||
(1) Fixed income/credit-related hedge funds, event-driven hedge funds, and multi-strategy hedge funds are redeemable at least on a six-month period basis primarily with a notice period of 90 days or less. At September 30, 2013, approximately 40% of the fair value amount of long-short equity hedge funds is redeemable at least quarterly, 40% is redeemable every six months and 20% of these funds have a redemption frequency of greater than six months. The notice period for long-short equity hedge funds at September 30, 2013 is primarily greater than six months. At December 31, 2012, approximately 36% of the fair value amount of long-short equity hedge funds is redeemable at least quarterly, 38% is redeemable every six months and 26% of these funds have a redemption frequency of greater than six months. The notice period for long-short equity hedge funds at December 31, 2012 is primarily greater than six months. | ||||||||||||||||||||||
Private Equity Funds. Amount includes several private equity funds that pursue multiple strategies including leveraged buyouts, venture capital, infrastructure growth capital, distressed investments, and mezzanine capital. In addition, the funds may be structured with a focus on specific domestic or foreign geographic regions. These investments are generally not redeemable with the funds. Instead, the nature of the investments in this category is that distributions are received through the liquidation of the underlying assets of the fund. At September 30, 2013, it is estimated that 8% of the fair value of the funds will be liquidated in the next five years, another 57% of the fair value of the funds will be liquidated between five to 10 years and the remaining 35% of the fair value of the funds have a remaining life of greater than 10 years. | ||||||||||||||||||||||
Real Estate Funds. Amount includes several real estate funds that invest in real estate assets such as commercial office buildings, retail properties, multi-family residential properties, developments or hotels. In addition, the funds may be structured with a focus on specific geographic domestic or foreign regions. These investments are generally not redeemable with the funds. Distributions from each fund will be received as the underlying investments of the funds are liquidated. At September 30, 2013, it is estimated that 3% of the fair value of the funds will be liquidated within the next five years, another 53% of the fair value of the funds will be liquidated between five to 10 years and the remaining 44% of the fair value of the funds have a remaining life of greater than 10 years. | ||||||||||||||||||||||
Hedge Funds. Investments in hedge funds may be subject to initial period lock-up restrictions or gates. A hedge fund lock-up provision is a provision that provides that, during a certain initial period, an investor may not make a withdrawal from the fund. The purpose of a gate is to restrict the level of redemptions that an investor in a particular hedge fund can demand on any redemption date. | ||||||||||||||||||||||
• Long-short Equity Hedge Funds. Amount includes investments in hedge funds that invest, long or short, in equities. Equity value and growth hedge funds purchase stocks perceived to be undervalued and sell stocks perceived to be overvalued. Investments representing approximately 14% of the fair value of the investments in this category cannot be redeemed currently because the investments include certain initial period lock-up restrictions. The remaining restriction period for these investments subject to lock-up restrictions was primarily two years or less at September 30, 2013. Investments representing approximately 19% of the fair value of the investments in long-short equity hedge funds cannot be redeemed currently because an exit restriction has been imposed by the hedge fund manager. The restriction period for these investments subject to an exit restriction was primarily less than one year at September 30, 2013. | ||||||||||||||||||||||
• Fixed Income/Credit-Related Hedge Funds. Amount includes investments in hedge funds that employ long-short, distressed or relative value strategies in order to benefit from investments in undervalued or overvalued securities that are primarily debt or credit related. At September 30, 2013, there were no restrictions on redemptions. | ||||||||||||||||||||||
• Event-Driven Hedge Funds. Amount includes investments in hedge funds that invest in event-driven situations such as mergers, hostile takeovers, reorganizations, or leveraged buyouts. This may involve the simultaneous purchase of stock in companies being acquired and the sale of stock in its acquirer, with the expectation to profit from the spread between the current market price and the ultimate purchase price of the target company. At September 30, 2013, there were no restrictions on redemptions. | ||||||||||||||||||||||
• Multi-strategy Hedge Funds. Amount includes investments in hedge funds that pursue multiple strategies to realize short- and long-term gains. Management of the hedge funds has the ability to overweight or underweight different strategies to best capitalize on current investment opportunities. At September 30, 2013, investments representing approximately 47% of the fair value of the investments in this category cannot be redeemed currently because the investments include certain initial period lock-up restrictions. The remaining restriction period for these investments subject to lock-up restrictions was primarily two years or less at September 30, 2013. Investments representing approximately 9% of the fair value of the investments in multi-strategy hedge funds cannot be redeemed currently because an exit restriction has been imposed by the hedge fund manager. The restriction period for these investments subject to an exit restriction was indefinite at September 30, 2013. | ||||||||||||||||||||||
Fair Value Option. | ||||||||||||||||||||||
The Company elected the fair value option for certain eligible instruments that are risk managed on a fair value basis to mitigate income statement volatility caused by measurement basis differences between the elected instruments and their associated risk management transactions or to eliminate complexities of applying certain accounting models. The following tables present net gains (losses) due to changes in fair value for items measured at fair value pursuant to the fair value option election for the quarters and nine months ended September 30, 2013 and 2012, respectively: | ||||||||||||||||||||||
Interest | Gains (Losses) | |||||||||||||||||||||
Income | Included in | |||||||||||||||||||||
Trading | (Expense) | Net Revenues | ||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||
Federal funds sold and securities purchased under | ||||||||||||||||||||||
agreements to resell | $ | 1 | $ | 3 | $ | 4 | ||||||||||||||||
Deposits | 14 | -17 | -3 | |||||||||||||||||||
Commercial paper and other short-term borrowings(1) | -62 | -3 | -65 | |||||||||||||||||||
Securities sold under agreements to repurchase | -3 | -2 | -5 | |||||||||||||||||||
Long-term borrowings(1) | -154 | -224 | -378 | |||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Federal funds sold and securities purchased under | ||||||||||||||||||||||
agreements to resell | $ | ─ | $ | 6 | $ | 6 | ||||||||||||||||
Deposits | 44 | -50 | -6 | |||||||||||||||||||
Commercial paper and other short-term borrowings(1) | 118 | -5 | 113 | |||||||||||||||||||
Securities sold under agreements to repurchase | 2 | -5 | -3 | |||||||||||||||||||
Long-term borrowings(1) | 1,053 | -752 | 301 | |||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||
Federal funds sold and securities purchased under | ||||||||||||||||||||||
agreements to resell | $ | 3 | $ | 2 | $ | 5 | ||||||||||||||||
Deposits | 16 | -22 | -6 | |||||||||||||||||||
Commercial paper and other short-term borrowings(2) | -68 | ─ | -68 | |||||||||||||||||||
Securities sold under agreements to repurchase | -13 | -1 | -14 | |||||||||||||||||||
Long-term borrowings(2) | -3,570 | -348 | -3,918 | |||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Federal funds sold and securities purchased under | ||||||||||||||||||||||
agreements to resell | $ | 11 | $ | 4 | $ | 15 | ||||||||||||||||
Deposits | 41 | -66 | -25 | |||||||||||||||||||
Commercial paper and other short-term borrowings(2) | 14 | ─ | 14 | |||||||||||||||||||
Securities sold under agreements to repurchase | -10 | -3 | -13 | |||||||||||||||||||
Long-term borrowings(2) | -5,221 | -1,017 | -6,238 | |||||||||||||||||||
Of the total gains (losses) recorded in Trading revenues for short-term and long-term borrowings for the quarter and nine months ended September 30, 2013, $(171) million and $(313) million, respectively, are attributable to changes in the credit quality of the Company, and the respective remainder is attributable to changes in foreign currency rates or interest rates or movements in the reference price or index for structured notes before the impact of related hedges. | ||||||||||||||||||||||
Of the total gains (losses) recorded in Trading revenues for short-term and long-term borrowings for the quarter and nine months ended September 30, 2012, $(2,262) million and $(3,890) million, respectively, are attributable to changes in the credit quality of the Company, and the respective remainder is attributable to changes in foreign currency rates or interest rates or movements in the reference price or index for structured notes before the impact of related hedges. | ||||||||||||||||||||||
In addition to the amounts in the above table, as discussed in Note 2 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K, all of the instruments within Trading assets or Trading liabilities are measured at fair value, either through the election of the fair value option or as required by other accounting guidance. The amounts in the above table are included within Net revenues and do not reflect gains or losses on related hedging instruments, if any. | ||||||||||||||||||||||
The Company hedges the economics of market risk for short-term and long-term borrowings (i.e., risks other than that related to the credit quality of the Company) as part of its overall trading strategy and manages the market risks embedded within the issuance by the related business unit as part of the business unit's portfolio. The gains and losses on related economic hedges are recorded in Trading revenues and largely offset the gains and losses on short-term and long-term borrowings attributable to market risk. | ||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, a breakdown of the short-term and long-term borrowings measured at fair value on a recurring basis by business unit responsible for risk-managing each borrowing is shown in the table below: | ||||||||||||||||||||||
Short-term and Long-term | ||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||
At | At | |||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||
Business Unit | 2013 | 2012 | ||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Interest rates | $ | 17,457 | $ | 23,330 | ||||||||||||||||||
Equity | 17,657 | 17,326 | ||||||||||||||||||||
Credit and foreign exchange | 2,688 | 3,337 | ||||||||||||||||||||
Commodities | 540 | 776 | ||||||||||||||||||||
Total | $ | 38,342 | $ | 44,769 | ||||||||||||||||||
The following tables present information on the Company's short-term and long-term borrowings (primarily structured notes), loans and unfunded lending commitments for which the fair value option was elected. | ||||||||||||||||||||||
Gains (Losses) due to Changes in Instrument-Specific Credit Risk. | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Short-term and long-term borrowings(1) | $ | -171 | $ | -2,262 | $ | -313 | $ | -3,890 | ||||||||||||||
Loans(2) | 35 | 255 | 150 | 429 | ||||||||||||||||||
Unfunded lending commitments(3) | 6 | 319 | 221 | 804 | ||||||||||||||||||
_____________ | ||||||||||||||||||||||
(1) The change in the fair value of short-term and long-term borrowings (primarily structured notes) includes an adjustment to reflect the change in credit quality of the Company based upon observations of the Company's secondary bond market spreads. | ||||||||||||||||||||||
(2) Instrument-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses, such as those due to changes in interest rates. | ||||||||||||||||||||||
(3) Gains (losses) were generally determined based on the differential between estimated expected client yields and contractual yields at each respective period end. | ||||||||||||||||||||||
Net Difference between Contractual Principal Amount and Fair Value. | ||||||||||||||||||||||
Contractual Principal Amount Exceeds Fair Value | ||||||||||||||||||||||
At | At | |||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Short-term and long-term borrowings(1) | $ | -1,513 | $ | -436 | ||||||||||||||||||
Loans(2) | 17,879 | 25,249 | ||||||||||||||||||||
Loans 90 or more days past due and/or on non-accrual status(2)(3) | 16,149 | 20,456 | ||||||||||||||||||||
_____________ | ||||||||||||||||||||||
(1) These amounts do not include structured notes where the repayment of the initial principal amount fluctuates based on changes in the reference price or index. | ||||||||||||||||||||||
(2) The majority of this difference between principal and fair value amounts emanates from the Company's distressed debt trading business, which purchases distressed debt at amounts well below par. | ||||||||||||||||||||||
(3) The aggregate fair value of loans that were in non-accrual status, which includes all loans 90 or more days past due, was $1,885 million and $1,360 million at September 30, 2013 and December 31, 2012, respectively. The aggregate fair value of loans that were 90 or more days past due was $1,158 million and $840 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||
The tables above exclude non-recourse debt from consolidated VIEs, liabilities related to failed sales of financial assets, pledged commodities and other liabilities that have specified assets attributable to them. | ||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis. | ||||||||||||||||||||||
Certain assets were measured at fair value on a non-recurring basis and are not included in the tables above. These assets may include loans, other investments, premises, equipment and software costs, and intangible assets. | ||||||||||||||||||||||
The following tables present, by caption on the condensed consolidated statements of financial condition, the fair value hierarchy for those assets measured at fair value on a non-recurring basis for which the Company recognized a non-recurring fair value adjustment for the quarters and nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||
Three and Nine Months Ended September 30, 2013. | ||||||||||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||||||||
Quoted Prices | Total | Total | ||||||||||||||||||||
in Active | Gains (Losses) | Gains (Losses) | ||||||||||||||||||||
Carrying | Markets for | Significant | Significant | for the | for the | |||||||||||||||||
Value at | Identical | Observable | Unobservable | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | Assets | Inputs | Inputs | September 30, | September 30, | |||||||||||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | 2013(1) | 2013(1) | |||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Loans(2) | $ | 1,507 | $ | ─ | $ | 1,160 | $ | 347 | $ | -35 | $ | -106 | ||||||||||
Other investments(3)(4) | 55 | ─ | ─ | 55 | -5 | -28 | ||||||||||||||||
Premises, equipment and | ||||||||||||||||||||||
software costs(3)(4) | ─ | ─ | ─ | ─ | -17 | -23 | ||||||||||||||||
Intangible assets(3)(4) | ─ | ─ | ─ | ─ | ─ | -9 | ||||||||||||||||
Total | $ | 1,562 | $ | ─ | $ | 1,160 | $ | 402 | $ | -57 | $ | -166 | ||||||||||
____________ | ||||||||||||||||||||||
(1) Fair value adjustments related to Loans and losses related to Other investments are recorded within Other revenues whereas losses related to Premises, equipment and software costs and Intangible assets are recorded within Other expenses in the condensed consolidated statements of income. . | ||||||||||||||||||||||
(2) Non-recurring changes in the fair value of loans held for investment or held for sale were calculated using recently executed transactions; market price quotations; valuation models that incorporate market observable inputs where possible, such as comparable loan or debt prices and credit default swap spread levels adjusted for any basis difference between cash and derivative instruments; or default recovery analysis where such transactions and quotations are unobservable. | ||||||||||||||||||||||
(3) Carrying values relate only to those assets that had fair value adjustments during the quarter ended September 30, 2013. These amounts do not include assets that had fair value adjustments during the nine months ended September 30, 2013, unless the assets also had a fair value adjustment during the quarter ended September 30, 2013. | ||||||||||||||||||||||
(4) Losses recorded were determined primarily using discounted cash flow models. | ||||||||||||||||||||||
There were no liabilities measured at fair value on a non-recurring basis during the quarter and nine months ended September 30, 2013. | ||||||||||||||||||||||
Three and Nine Months Ended September 30, 2012. | ||||||||||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||||||||
Quoted Prices | Total | Total | ||||||||||||||||||||
in Active | Gains(Losses) | Gains (Losses) | ||||||||||||||||||||
Carrying | Markets for | Significant | Significant | for the | for the | |||||||||||||||||
Value at | Identical | Observable | Unobservable | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | Assets | Inputs | Inputs | September 30, | September 30, | |||||||||||||||||
2012 | (Level 1) | (Level 2) | (Level 3) | 2012(1) | 2012(1) | |||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Loans(2) | $ | 893 | $ | ─ | $ | 138 | $ | 755 | $ | -10 | $ | -30 | ||||||||||
Other investments(3)(4) | 82 | ─ | ─ | 82 | -11 | -21 | ||||||||||||||||
Premises, equipment and | ||||||||||||||||||||||
software costs(3)(5) | 34 | ─ | ─ | 34 | -168 | -169 | ||||||||||||||||
Intangible assets(3)(4) | ─ | ─ | ─ | ─ | ─ | -4 | ||||||||||||||||
Total | $ | 1,009 | $ | ─ | $ | 138 | $ | 871 | $ | -189 | $ | -224 | ||||||||||
_____________ | ||||||||||||||||||||||
(1) Losses are recorded within Other expenses in the condensed consolidated statements of income except for fair value adjustments related to Loans and losses related to Other investments, which are included in Other revenues. | ||||||||||||||||||||||
(2) Non-recurring changes in the fair value of loans held for investment or held for sale were calculated using recently executed transactions; market price quotations; valuation models that incorporate market observable inputs where possible, such as comparable loan or debt prices and credit default swap spread levels adjusted for any basis difference between cash and derivative instruments; or default recovery analysis where such transactions and quotations are unobservable. | ||||||||||||||||||||||
(3) Carrying values relate only to those assets that had fair value adjustments during the quarter ended September 30, 2012. These amounts do not include assets that had fair value adjustments during the nine months ended September 30, 2012, unless the assets also had a fair value adjustment during the quarter ended September 30, 2012. | ||||||||||||||||||||||
(4) Losses recorded were determined primarily using discounted cash flow models. | ||||||||||||||||||||||
(5) Losses were determined using discounted cash flow models and primarily represented the write-off of the carrying value of certain premises and software that were abandoned during the quarter ended September 30, 2012 in association with the Wealth Management JV integration. | ||||||||||||||||||||||
In addition to the losses included in the table above, there was a pre-tax gain of approximately $51 million (related to Other assets) included in discontinued operations in the nine months ended September 30, 2012 in connection with the disposition of Saxon (see Notes 1 and 21). This pre-tax gain was primarily due to the subsequent increase in the fair value of Saxon, which had incurred impairment losses of $98 million in the quarter ended December 31, 2011. The fair value of Saxon was determined based on the revised purchase price agreed upon with the buyer. | ||||||||||||||||||||||
There were no liabilities measured at fair value on a non-recurring basis during the quarter and nine months ended September 30, 2012. | ||||||||||||||||||||||
Financial Instruments Not Measured at Fair Value. | ||||||||||||||||||||||
The tables below present the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value in the condensed consolidated statements of financial condition. The tables below exclude certain financial instruments such as equity method investments and all non-financial assets and liabilities such as the value of the long-term relationships with our deposit customers. | ||||||||||||||||||||||
The carrying value of cash and cash equivalents, including Interest bearing deposits with banks, and other short-term financial instruments such as Federal funds sold and securities purchased under agreements to resell, Securities borrowed, Securities sold under agreements to repurchase, Securities loaned, certain Customer and other receivables and Customer and other payables arising in the ordinary course of business, Deposits, Commercial paper and other short-term borrowings and Other secured financings approximate fair value because of the relatively short period of time between their origination and expected maturity. | ||||||||||||||||||||||
For longer-dated Federal funds sold and securities purchased under agreements to resell, Securities borrowed, Securities sold under agreements to repurchase, Securities loaned and Other secured financings, fair value is determined using a standard cash flow discounting methodology. The inputs to the valuation include contractual cash flows and collateral funding spreads, which are estimated using various benchmarks and interest rate yield curves. | ||||||||||||||||||||||
For consumer and residential real estate loans where position-specific external price data are not observable, the fair value is based on the credit risks of the borrower using a probability of default and loss given default method, discounted at the estimated external cost of funding level. The fair value of corporate loans is determined using recently executed transactions, market price quotations (where observable), implied yields from comparable debt, and market observable credit default swap spread levels along with proprietary valuation models and default recovery analysis where such transactions and quotations are unobservable. | ||||||||||||||||||||||
The fair value of long-term borrowings is generally determined based on transactional data or third party pricing for identical or comparable instruments, when available. Where position-specific external prices are not observable, fair value is determined based on current interest rates and credit spreads for debt instruments with similar terms and maturity. | ||||||||||||||||||||||
Financial Instruments Not Measured at Fair Value at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||
At September 30, 2013. | ||||||||||||||||||||||
At September 30, 2013 | Fair Value Measurements Using: | |||||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||
Cash and due from banks | $ | 14,333 | $ | 14,333 | $ | 14,333 | $ | — | $ | — | ||||||||||||
Interest bearing deposits with banks | 43,448 | 43,448 | 43,448 | — | — | |||||||||||||||||
Cash deposited with clearing organizations or segregated under federal and | ||||||||||||||||||||||
other regulations or requirements | 37,392 | 37,392 | 37,392 | — | — | |||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 133,120 | 133,117 | — | 132,613 | 504 | |||||||||||||||||
Securities borrowed | 139,169 | 139,165 | — | 138,836 | 329 | |||||||||||||||||
Customer and other receivables(1) | 53,636 | 53,512 | — | 47,964 | 5,548 | |||||||||||||||||
Loans(2) | 37,734 | 37,697 | — | 9,807 | 27,890 | |||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||
Deposits | $ | 103,396 | $ | 103,396 | $ | — | $ | 103,396 | $ | — | ||||||||||||
Commercial paper and other short-term borrowings | 710 | 710 | — | 656 | 54 | |||||||||||||||||
Securities sold under agreements to repurchase | 138,844 | 138,882 | — | 131,399 | 7,483 | |||||||||||||||||
Securities loaned | 32,807 | 32,868 | — | 31,999 | 869 | |||||||||||||||||
Other secured financings | 8,383 | 8,418 | — | 5,944 | 2,474 | |||||||||||||||||
Customer and other payables(1) | 149,005 | 149,005 | — | 149,005 | — | |||||||||||||||||
Long-term borrowings | 121,086 | 124,727 | — | 116,945 | 7,782 | |||||||||||||||||
___________________ | ||||||||||||||||||||||
(1) Accrued interest, fees and dividend receivables and payables where carrying value approximates fair value have been excluded. | ||||||||||||||||||||||
(2) Includes all loans measured at fair value on a non-recurring basis. | ||||||||||||||||||||||
The fair value of the Company's unfunded lending commitments, primarily related to corporate lending in the Institutional Securities business segment, that are not carried at fair value at September 30, 2013 was $864 million, of which $787 million and $77 million would be categorized in Level 2 and Level 3 of the fair value hierarchy, respectively. The carrying value of these commitments, if fully funded, would be $71.5 billion. | ||||||||||||||||||||||
At December 31, 2012. | ||||||||||||||||||||||
At December 31, 2012 | Fair Value Measurements Using: | |||||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||
Cash and due from banks | $ | 20,878 | $ | 20,878 | $ | 20,878 | $ | — | $ | — | ||||||||||||
Interest bearing deposits with banks | 26,026 | 26,026 | 26,026 | — | — | |||||||||||||||||
Cash deposited with clearing organizations or segregated under federal and | ||||||||||||||||||||||
other regulations or requirements | 30,970 | 30,970 | 30,970 | — | — | |||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 133,791 | 133,792 | — | 133,035 | 757 | |||||||||||||||||
Securities borrowed | 121,701 | 121,705 | — | 121,691 | 14 | |||||||||||||||||
Customer and other receivables(1) | 59,702 | 59,634 | — | 53,532 | 6,102 | |||||||||||||||||
Loans(2) | 29,046 | 27,263 | — | 5,307 | 21,956 | |||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||
Deposits | $ | 81,781 | $ | 81,781 | $ | — | $ | 81,781 | $ | — | ||||||||||||
Commercial paper and other short-term borrowings | 1,413 | 1,413 | — | 1,107 | 306 | |||||||||||||||||
Securities sold under agreements to repurchase | 122,311 | 122,389 | — | 111,722 | 10,667 | |||||||||||||||||
Securities loaned | 36,849 | 37,163 | — | 35,978 | 1,185 | |||||||||||||||||
Other secured financings | 6,261 | 6,276 | — | 3,649 | 2,627 | |||||||||||||||||
Customer and other payables(1) | 125,037 | 125,037 | — | 125,037 | — | |||||||||||||||||
Long-term borrowings | 125,527 | 126,683 | — | 116,511 | 10,172 | |||||||||||||||||
_________________ | ||||||||||||||||||||||
(1) Accrued interest, fees and dividend receivables and payables where carrying value approximates fair value have been excluded. | ||||||||||||||||||||||
(2) Includes all loans measured at fair value on a non-recurring basis. | ||||||||||||||||||||||
The fair value of the Company's unfunded lending commitments, primarily related to corporate lending in the Institutional Securities business segment, that are not carried at fair value at December 31, 2012 was $755 million, of which $543 million and $212 million would be categorized in Level 2 and Level 3 of the fair value hierarchy, respectively. The carrying value of these commitments, if fully funded, would be $50.0 billion. | ||||||||||||||||||||||
Securities_Available_for_Sale
Securities Available for Sale | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Available-for-sale Securities [Abstract] | ' | |||||||||||||||
Securities Available For Sale | ' | |||||||||||||||
5. Securities Available for Sale. | ||||||||||||||||
The following tables present information about the Company's available for sale securities: | ||||||||||||||||
At September 30, 2013 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Other-than-Temporary Impairment | Fair Value | ||||||||||||
(dollars in millions) | ||||||||||||||||
Debt securities available for sale: | ||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||
U.S. Treasury securities | $ | 19,856 | $ | 65 | $ | 80 | $ | — | $ | 19,841 | ||||||
U.S. agency securities | 14,098 | 36 | 174 | — | 13,960 | |||||||||||
Total U.S. government and agency securities | 33,954 | 101 | 254 | — | 33,801 | |||||||||||
Corporate and other debt: | ||||||||||||||||
Commercial mortgage-backed securities: | ||||||||||||||||
Agency | 2,382 | — | 76 | — | 2,306 | |||||||||||
Non-Agency | 1,179 | 2 | 19 | — | 1,162 | |||||||||||
Auto loan asset-backed securities | 2,046 | 1 | 3 | — | 2,044 | |||||||||||
Corporate bonds | 3,562 | 4 | 54 | — | 3,512 | |||||||||||
Collateralized debt and loan obligations | 1,087 | — | 14 | — | 1,073 | |||||||||||
FFELP student loan asset-backed securities(1) | 2,950 | 12 | 8 | — | 2,954 | |||||||||||
Total Corporate and other debt | 13,206 | 19 | 174 | — | 13,051 | |||||||||||
Total debt securities available for sale | 47,160 | 120 | 428 | — | 46,852 | |||||||||||
Equity securities available for sale | 15 | — | 1 | — | 14 | |||||||||||
Total | $ | 47,175 | $ | 120 | $ | 429 | $ | — | $ | 46,866 | ||||||
At December 31, 2012 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Other-than-Temporary Impairment | Fair Value | ||||||||||||
(dollars in millions) | ||||||||||||||||
Debt securities available for sale: | ||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||
U.S. Treasury securities | $ | 14,351 | $ | 109 | $ | 2 | $ | — | $ | 14,458 | ||||||
U.S. agency securities | 15,330 | 122 | 3 | — | 15,449 | |||||||||||
Total U.S. government and agency securities | 29,681 | 231 | 5 | — | 29,907 | |||||||||||
Corporate and other debt: | ||||||||||||||||
Commercial mortgage-backed securities: | ||||||||||||||||
Agency | 2,197 | 6 | 4 | — | 2,199 | |||||||||||
Non-Agency | 160 | — | — | — | 160 | |||||||||||
Auto loan asset-backed securities | 1,993 | 4 | 1 | — | 1,996 | |||||||||||
Corporate bonds | 2,891 | 13 | 3 | — | 2,901 | |||||||||||
FFELP student loan asset-backed securities(1) | 2,675 | 23 | — | — | 2,698 | |||||||||||
Total Corporate and other debt | 9,916 | 46 | 8 | — | 9,954 | |||||||||||
Total debt securities available for sale | 39,597 | 277 | 13 | — | 39,861 | |||||||||||
Equity securities available for sale | 15 | — | 7 | — | 8 | |||||||||||
Total | $ | 39,612 | $ | 277 | $ | 20 | $ | — | $ | 39,869 | ||||||
______________ | ||||||||||||||||
Amounts are backed by a guarantee from the U.S. Department of Education of at least 95% of the principal balance and interest on such loans. | ||||||||||||||||
The tables below present the fair value of investments in securities available for sale that are in an unrealized loss position: | ||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||
At September 30, 2013 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||
(dollars in millions) | ||||||||||||||||
Debt securities available for sale: | ||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||
U.S. Treasury securities | $ | 6,098 | $ | 80 | $ | — | $ | — | $ | 6,098 | $ | 80 | ||||
U.S. agency securities | 7,092 | 172 | 241 | 2 | 7,333 | 174 | ||||||||||
Total U.S. government and agency securities | 13,190 | 252 | 241 | 2 | 13,431 | 254 | ||||||||||
Corporate and other debt: | ||||||||||||||||
Commercial mortgage-backed securities: | ||||||||||||||||
Agency | 2,099 | 62 | 208 | 14 | 2,307 | 76 | ||||||||||
Non-Agency | 947 | 18 | — | 1 | 947 | 19 | ||||||||||
Auto loan asset-backed securities | 1,189 | 3 | 65 | — | 1,254 | 3 | ||||||||||
Corporate bonds | 2,708 | 50 | 119 | 4 | 2,827 | 54 | ||||||||||
Collateralized debt and loan obligations | 1,073 | 14 | — | — | 1,073 | 14 | ||||||||||
FFELP student loan asset-backed securities | 1,251 | 8 | 34 | — | 1,285 | 8 | ||||||||||
Total Corporate and other debt | 9,267 | 155 | 426 | 19 | 9,693 | 174 | ||||||||||
Total debt securities available for sale | 22,457 | 407 | 667 | 21 | 23,124 | 428 | ||||||||||
Equity securities available for sale | 14 | 1 | — | — | 14 | 1 | ||||||||||
Total | $ | 22,471 | $ | 408 | $ | 667 | $ | 21 | $ | 23,138 | $ | 429 | ||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||
At December 31, 2012 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||
(dollars in millions) | ||||||||||||||||
Debt securities available for sale: | ||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||
U.S. Treasury securities | $ | 1,012 | $ | 2 | $ | — | $ | — | $ | 1,012 | $ | 2 | ||||
U.S. agency securities | 1,534 | 3 | 27 | — | 1,561 | 3 | ||||||||||
Total U.S. government and agency securities | 2,546 | 5 | 27 | — | 2,573 | 5 | ||||||||||
Corporate and other debt: | ||||||||||||||||
Commercial mortgage-backed securities: | ||||||||||||||||
Agency | 1,057 | 4 | — | — | 1,057 | 4 | ||||||||||
Auto loan asset-backed securities | 710 | 1 | — | — | 710 | 1 | ||||||||||
Corporate bonds | 934 | 3 | — | — | 934 | 3 | ||||||||||
Total Corporate and other debt | 2,701 | 8 | — | — | 2,701 | 8 | ||||||||||
Total debt securities available for sale | 5,247 | 13 | 27 | — | 5,274 | 13 | ||||||||||
Equity securities available for sale | 8 | 7 | — | — | 8 | 7 | ||||||||||
Total | $ | 5,255 | $ | 20 | $ | 27 | $ | — | $ | 5,282 | $ | 20 | ||||
Gross unrealized gains and losses are recorded in Accumulated other comprehensive income. | ||||||||||||||||
The unrealized losses reported above on debt securities available for sale are due to rising interest rates during the nine months ended September 30, 2013. The Company does not intend to sell these securities or expect to be required to sell these securities prior to recovery of the amortized cost basis. In addition, the Company does not expect the U.S. government and agency securities to experience a credit loss given the explicit and implicit guarantee provided by the U.S. government. The Company believes that the debt securities with an unrealized loss in Accumulated other comprehensive income were not other-than-temporarily impaired at September 30, 2013. | ||||||||||||||||
The following table presents the amortized cost and fair value of debt securities available for sale by contractual maturity dates at September 30, 2013. | ||||||||||||||||
At September 30, 2013 | Amortized Cost | Fair Value | Annualized Average Yield | |||||||||||||
(dollars in millions) | ||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||
U.S. Treasury securities: | ||||||||||||||||
Due within 1 year | $ | 3,153 | $ | 3,159 | 0.30% | |||||||||||
After 1 year through 5 years | 16,510 | 16,489 | 0.80% | |||||||||||||
After 5 years through 10 years | 193 | 193 | 2.00% | |||||||||||||
Total | 19,856 | 19,841 | ||||||||||||||
U.S. agency securities: | ||||||||||||||||
After 5 years through 10 years | 2,396 | 2,393 | 1.30% | |||||||||||||
After 10 years | 11,702 | 11,567 | 1.30% | |||||||||||||
Total | 14,098 | 13,960 | ||||||||||||||
Total U.S. government and agency securities | 33,954 | 33,801 | 0.90% | |||||||||||||
Corporate and other debt: | ||||||||||||||||
Commercial mortgage-backed securities: | ||||||||||||||||
Agency: | ||||||||||||||||
After 1 year through 5 years | 540 | 534 | 0.90% | |||||||||||||
After 5 years through 10 years | 530 | 517 | 1.00% | |||||||||||||
After 10 years | 1,312 | 1,255 | 1.50% | |||||||||||||
Total | 2,382 | 2,306 | ||||||||||||||
Non-Agency: | ||||||||||||||||
After 1 year through 5 years | 114 | 111 | 1.10% | |||||||||||||
After 5 years through 10 years | 60 | 59 | 1.40% | |||||||||||||
After 10 years | 1,005 | 992 | 1.60% | |||||||||||||
Total | 1,179 | 1,162 | ||||||||||||||
Auto loan asset-backed securities: | ||||||||||||||||
After 1 year through 5 years | 1,921 | 1,919 | 0.70% | |||||||||||||
After 5 years through 10 years | 125 | 125 | 0.80% | |||||||||||||
Total | 2,046 | 2,044 | ||||||||||||||
Corporate bonds: | ||||||||||||||||
Due within 1 year | 111 | 111 | 0.60% | |||||||||||||
After 1 year through 5 years | 2,702 | 2,678 | 1.20% | |||||||||||||
After 5 years through 10 years | 749 | 723 | 2.10% | |||||||||||||
Total | 3,562 | 3,512 | ||||||||||||||
Collateralized debt and loan obligations: | ||||||||||||||||
After 1 year through 5 years | 50 | 49 | 1.70% | |||||||||||||
After 10 years | 1,037 | 1,024 | 1.40% | |||||||||||||
Total | 1,087 | 1,073 | ||||||||||||||
FFELP student loan asset-backed securities: | ||||||||||||||||
After 1 year through 5 years | 85 | 85 | 0.70% | |||||||||||||
After 5 years through 10 years | 610 | 611 | 0.90% | |||||||||||||
After 10 years | 2,255 | 2,258 | 1.00% | |||||||||||||
Total | 2,950 | 2,954 | ||||||||||||||
Total Corporate and other debt | 13,206 | 13,051 | 1.20% | |||||||||||||
Total debt securities available for sale | $ | 47,160 | $ | 46,852 | 1.00% | |||||||||||
See Note 7 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, non-agency commercial mortgage backed securities, auto loan asset-backed securities, FFELP student loan asset-backed securities and collateralized debt and loan obligations. | ||||||||||||||||
The following table presents information pertaining to sales of securities available for sale during the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(dollars in millions) | ||||||||||||||||
Gross realized gains | $ | 6 | $ | 31 | $ | 47 | $ | 56 | ||||||||
Gross realized losses | $ | 1 | $ | — | $ | 4 | $ | 3 | ||||||||
Gross realized gains and losses are recognized in Other revenues in the condensed consolidated statements of income. | ||||||||||||||||
Collateralized_Transactions
Collateralized Transactions | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Collateralized Transactions | ' | ||||||||||||
Collateralized Transactions | ' | ||||||||||||
6. Collateralized Transactions. | |||||||||||||
The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate customers' needs and to finance the Company's inventory positions. The Company manages credit exposure arising from such transactions by, in appropriate circumstances, entering into master netting agreements and collateral agreements with counterparties that provide the Company, in the event of a counterparty default (such as bankruptcy or a counterparty's failure to pay or perform), the right to net a counterparty's rights and obligations under such agreement and liquidate and setoff collateral against the net amount owed by the counterparty. The Company's policy is generally to take possession of securities purchased under agreements to resell and securities borrowed, and to receive securities and cash posted as collateral (with rights of rehypothecation), although in certain cases the Company may agree for such collateral to be posted to a third party custodian under a tri-party arrangement that enables the Company to take control of such collateral in the event of a counterparty default. The Company also monitors the fair value of the underlying securities as compared with the related receivable or payable, including accrued interest, and, as necessary, requests additional collateral as provided under the applicable agreement to ensure such transactions are adequately collateralized. The following tables present information about the offsetting of these instruments and related collateral amounts. For information related to offsetting of derivatives, see Note 11. | |||||||||||||
At September 30, 2013 | |||||||||||||
Gross Amounts(1) | Amounts Offset in the Condensed Consolidated Statements of Financial Condition(2) | Net Amounts Presented in the Condensed Consolidated Statements of Financial Condition | Financial Instruments Not Offset in the Condensed Consolidated Statements of Financial Condition(3) | Net Exposure | |||||||||
(dollars in millions) | |||||||||||||
Assets | |||||||||||||
Federal funds sold and securities purchased under | |||||||||||||
agreements to resell | $ | 211,457 | $ | -77,469 | $ | 133,988 | $ | -127,980 | $ | 6,008 | |||
Securities borrowed | 145,647 | -6,478 | 139,169 | -122,345 | 16,824 | ||||||||
Liabilities | |||||||||||||
Securities sold under agreements to repurchase | $ | 216,867 | $ | -77,469 | $ | 139,398 | $ | -105,061 | $ | 34,337 | |||
Securities loaned | 39,285 | -6,478 | 32,807 | -31,857 | 950 | ||||||||
_____________ | |||||||||||||
(1) Amounts include $5.3 billion of Federal funds sold and securities purchased under agreements to resell, $12.5 billion of Securities borrowed and $33.0 billion of Securities sold under agreements to repurchase which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. | |||||||||||||
(2) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default and where certain other criteria are met in accordance with applicable offsetting accounting guidance. | |||||||||||||
(3) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. | |||||||||||||
At December 31, 2012 | |||||||||||||
Gross Amounts(1) | Amounts Offset in the Condensed Consolidated Statements of Financial Condition(2) | Net Amounts Presented in the Condensed Consolidated Statements of Financial Condition | Financial Instruments Not Offset in the Condensed Consolidated Statements of Financial Condition(3) | Net Exposure | |||||||||
(dollars in millions) | |||||||||||||
Assets | |||||||||||||
Federal funds sold and securities purchased under | |||||||||||||
agreements to resell | $ | 203,448 | $ | -69,036 | $ | 134,412 | $ | -126,303 | $ | 8,109 | |||
Securities borrowed | 127,002 | -5,301 | 121,701 | -105,849 | 15,852 | ||||||||
Liabilities | |||||||||||||
Securities sold under agreements to repurchase | $ | 191,710 | $ | -69,036 | $ | 122,674 | $ | -103,521 | $ | 19,153 | |||
Securities loaned | 42,150 | -5,301 | 36,849 | -30,395 | 6,454 | ||||||||
_____________ | |||||||||||||
(1) Amounts include $7.4 billion of Federal funds sold and securities purchased under agreements to resell, $8.6 billion of Securities borrowed, $17.5 billion of Securities sold under agreements to repurchase and $0.6 billion of Securities loaned which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. | |||||||||||||
(2) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default and where certain other criteria are met in accordance with applicable offsetting accounting guidance. | |||||||||||||
(3) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. | |||||||||||||
The Company also engages in securities financing transactions for customers through margin lending. Under these agreements and transactions, the Company either receives or provides collateral, including U.S. government and agency securities, other sovereign government obligations, corporate and other debt, and corporate equities. Customer receivables generated from margin lending activity are collateralized by customer-owned securities held by the Company. The Company monitors required margin levels and established credit limits daily and, pursuant to such guidelines, requires customers to deposit additional collateral, or reduce positions, when necessary. Margin loans are extended on a demand basis and are not committed facilities. Factors considered in the review of margin loans are the amount of the loan, the intended purpose, the degree of leverage being employed in the account, and overall evaluation of the portfolio to ensure proper diversification or, in the case of concentrated positions, appropriate liquidity of the underlying collateral or potential hedging strategies to reduce risk. Additionally, transactions relating to concentrated or restricted positions require a review of any legal impediments to liquidation of the underlying collateral. Underlying collateral for margin loans is reviewed with respect to the liquidity of the proposed collateral positions, valuation of securities, historic trading range, volatility analysis and an evaluation of industry concentrations. For these transactions, adherence to the Company's collateral policies significantly limits the Company's credit exposure in the event of customer default. The Company may request additional margin collateral from customers, if appropriate, and, if necessary, may sell securities that have not been paid for or purchase securities sold but not delivered from customers. At September 30, 2013 and December 31, 2012, there were approximately $21.9 billion and $24.0 billion, respectively, of customer margin loans outstanding. | |||||||||||||
Other secured financings include the liabilities related to transfers of financial assets that are accounted for as financings rather than sales, consolidated VIEs where the Company is deemed to be the primary beneficiary, and certain equity-linked notes and other secured borrowings. These liabilities are generally payable from the cash flows of the related assets accounted for as Trading assets (see Notes 7 and 10). | |||||||||||||
The Company pledges its trading assets to collateralize repurchase agreements and other securities financings. Pledged financial instruments that can be sold or repledged by the secured party are identified as Trading assets (pledged to various parties) in the condensed consolidated statements of financial condition. The carrying value and classification of Trading assets by the Company that have been loaned or pledged to counterparties where those counterparties do not have the right to sell or repledge the collateral were as follows: | |||||||||||||
At September 30, 2013 | At December 31, 2012 | ||||||||||||
(dollars in millions) | |||||||||||||
Trading assets: | |||||||||||||
U.S. government and agency securities | $ | 19,501 | $ | 15,273 | |||||||||
Other sovereign government obligations | 4,047 | 3,278 | |||||||||||
Corporate and other debt | 13,173 | 11,980 | |||||||||||
Corporate equities | 10,270 | 26,377 | |||||||||||
Total | $ | 46,991 | $ | 56,908 | |||||||||
The Company receives collateral in the form of securities in connection with reverse repurchase agreements, securities borrowed and derivative transactions, and customer margin loans. In many cases, the Company is permitted to sell or repledge these securities held as collateral and use the securities to secure repurchase agreements, to enter into securities lending and derivative transactions or for delivery to counterparties to cover short positions. The Company additionally receives securities as collateral in connection with certain securities-for-securities transactions in which the Company is the lender. In instances where the Company is permitted to sell or repledge these securities, the Company reports the fair value of the collateral received and the related obligation to return the collateral in the condensed consolidated statements of financial condition. At September 30, 2013 and December 31, 2012, the fair value of financial instruments received as collateral where the Company is permitted to sell or repledge the securities was $574 billion and $560 billion, respectively, and the fair value of the portion that had been sold or repledged was $424 billion and $397 billion, respectively. | |||||||||||||
At September 30, 2013 and December 31, 2012, cash and securities deposited with clearing organizations or segregated under federal and other regulations or requirements were as follows: | |||||||||||||
At September 30, 2013 | At December 31, 2012 | ||||||||||||
(dollars in millions) | |||||||||||||
Cash deposited with clearing organizations or segregated under federal and other | |||||||||||||
regulations or requirements | $ | 37,392 | $ | 30,970 | |||||||||
Securities(1) | 12,922 | 13,424 | |||||||||||
Total | $ | 50,314 | $ | 44,394 | |||||||||
_____________ | |||||||||||||
(1) Securities deposited with clearing organizations or segregated under federal and other regulations or requirements are sourced from Federal funds sold and securities purchased under agreements to resell and Trading assets in the condensed consolidated statements of financial condition. | |||||||||||||
Variable_Interest_Entities_and
Variable Interest Entities and Securitization Activities | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Securitization Activities and Variable Interest Entities [Abstract] | ' | ||||||||||||
Variable Interest Entity Disclosures | ' | ||||||||||||
7. Variable Interest Entities and Securitization Activities. | |||||||||||||
The Company is involved with various special purpose entities (“SPE”) in the normal course of business. In most cases, these entities are deemed to be VIEs. | |||||||||||||
The Company applies accounting guidance for consolidation of VIEs to certain entities in which equity investors do not have the characteristics of a controlling financial interest. Except for certain asset management entities, the primary beneficiary of a VIE is the party that both (1) has the power to direct the activities of a VIE that most significantly affect the VIE's economic performance and (2) has an obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. The Company consolidates entities of which it is the primary beneficiary. | |||||||||||||
The Company's variable interests in VIEs include debt and equity interests, commitments, guarantees, derivative instruments and certain fees. The Company's involvement with VIEs arises primarily from: | |||||||||||||
• Interests purchased in connection with market-making activities, securities held in its available for sale portfolio and retained interests held as a result of securitization activities, including re-securitization transactions. | |||||||||||||
• Guarantees issued and residual interests retained in connection with municipal bond securitizations. | |||||||||||||
• Servicing of residential and commercial mortgage loans held by VIEs. | |||||||||||||
• Loans made to and investments in VIEs that hold debt, equity, real estate or other assets. | |||||||||||||
• Derivatives entered into with VIEs. | |||||||||||||
• Structuring of credit-linked notes (“CLN”) or other asset-repackaged notes designed to meet the investment objectives of clients. | |||||||||||||
• Other structured transactions designed to provide tax-efficient yields to the Company or its clients. | |||||||||||||
The Company determines whether it is the primary beneficiary of a VIE upon its initial involvement with the VIE and reassesses whether it is the primary beneficiary on an ongoing basis as long as it has any continuing involvement with the VIE. This determination is based upon an analysis of the design of the VIE, including the VIE's structure and activities, the power to make significant economic decisions held by the Company and by other parties, and the variable interests owned by the Company and other parties. | |||||||||||||
The power to make the most significant economic decisions may take a number of different forms in different types of VIEs. The Company considers servicing or collateral management decisions as representing the power to make the most significant economic decisions in transactions such as securitizations or CDOs. As a result, the Company does not consolidate securitizations or CDOs for which it does not act as the servicer or collateral manager unless it holds certain other rights to replace the servicer or collateral manager or to require the liquidation of the entity. If the Company serves as servicer or collateral manager, or has certain other rights described in the previous sentence, the Company analyzes the interests in the VIE that it holds and consolidates only those VIEs for which it holds a potentially significant interest of the VIE. | |||||||||||||
The structure of securitization vehicles and CDOs is driven by several parties, including loan seller(s) in securitization transactions, the collateral manager in a CDO, one or more rating agencies, a financial guarantor in some transactions and the underwriter(s) of the transactions, who serve to reflect specific investor demand. In addition, subordinate investors, such as the “B-piece” buyer (i.e., investors in most subordinated bond classes) in commercial mortgage-backed securitizations or equity investors in CDOs, can influence whether specific loans are excluded from a CMBS transaction or investment criteria in a CDO. | |||||||||||||
For many transactions, such as re-securitization transactions, CLNs and other asset-repackaged notes, there are no significant economic decisions made on an ongoing basis. In these cases, the Company focuses its analysis on decisions made prior to the initial closing of the transaction and at the termination of the transaction. Based upon factors, which include an analysis of the nature of the assets, including whether the assets were issued in a transaction sponsored by the Company and the extent of the information available to the Company and to investors, the number, nature and involvement of investors, other rights held by the Company and investors, the standardization of the legal documentation and the level of the continuing involvement by the Company, including the amount and type of interests owned by the Company and by other investors, the Company concluded in most of these transactions that decisions made prior to the initial closing were shared between the Company and the initial investors. The Company focused its control decision on any right held by the Company or investors related to the termination of the VIE. Most re-securitization transactions, CLNs and other asset-repackaged notes have no such termination rights. | |||||||||||||
Except for consolidated VIEs included in other structured financings and managed real estate partnerships in the tables below, the Company accounts for the assets held by the entities primarily in Trading assets and the liabilities of the entities as Other secured financings in the condensed consolidated statements of financial condition. For consolidated VIEs included in other structured financings, the Company accounts for the assets held by the entities primarily in Premises, equipment and software costs, and Other assets in the condensed consolidated statements of financial condition. For consolidated VIEs included in managed real estate partnerships, the Company accounts for the assets held by the entities primarily in Trading assets in the condensed consolidated statements of financial condition. Except for consolidated VIEs included in other structured financings, the assets and liabilities are measured at fair value, with changes in fair value reflected in earnings. | |||||||||||||
The assets owned by many consolidated VIEs cannot be removed unilaterally by the Company and are not generally available to the Company. The related liabilities issued by many consolidated VIEs are non-recourse to the Company. In certain other consolidated VIEs, the Company has the unilateral right to remove assets or provides additional recourse through derivatives such as total return swaps, guarantees or other forms of involvement. | |||||||||||||
As part of the Company's Institutional Securities business segment's securitization and related activities, the Company has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Company (see Note 12). | |||||||||||||
The following tables present information at September 30, 2013 and December 31, 2012 about VIEs that the Company consolidates. Consolidated VIE assets and liabilities are presented after intercompany eliminations and include assets financed on a non-recourse basis: | |||||||||||||
At September 30, 2013 | |||||||||||||
Mortgage and Asset-Backed Securitizations | Collateralized Debt Obligations | Managed Real Estate Partnerships | Other Structured Financings | Other | |||||||||
(dollars in millions) | |||||||||||||
VIE assets | $ | 752 | $ | — | $ | 2,269 | $ | 1,187 | $ | 1,343 | |||
VIE liabilities | $ | 423 | $ | 86 | $ | 59 | $ | 66 | $ | 163 | |||
At December 31, 2012 | |||||||||||||
Mortgage and Asset-Backed Securitizations | Collateralized Debt Obligations | Managed Real Estate Partnerships | Other Structured Financings | Other | |||||||||
(dollars in millions) | |||||||||||||
VIE assets | $ | 978 | $ | 52 | $ | 2,394 | $ | 983 | $ | 1,676 | |||
VIE liabilities | $ | 646 | $ | 16 | $ | 83 | $ | 65 | $ | 313 | |||
In general, the Company's exposure to loss in consolidated VIEs is limited to losses that would be absorbed on the VIE's assets recognized in its financial statements, net of losses absorbed by third-party holders of the VIE's liabilities. At September 30, 2013 and December 31, 2012, managed real estate partnerships reflected nonredeemable noncontrolling interests in the Company's condensed consolidated financial statements of $1,742 million and $1,804 million, respectively. The Company also had additional maximum exposure to losses of approximately $68 million and $58 million at September 30, 2013 and December 31, 2012, respectively. This additional exposure related primarily to certain derivatives (e.g., instead of purchasing senior securities, the Company has sold credit protection to synthetic CDOs through credit derivatives that are typically related to the most senior tranche of the CDO) and commitments, guarantees and other forms of involvement. | |||||||||||||
The following tables present information about certain non-consolidated VIEs in which the Company had variable interests at September 30, 2013 and December 31, 2012. The tables include all VIEs in which the Company has determined that its maximum exposure to loss is greater than specific thresholds or meets certain other criteria. Most of the VIEs included in the tables below are sponsored by unrelated parties; the Company's involvement generally is the result of the Company's secondary market-making activities and securities held in its available for sale portfolio (see Note 5): | |||||||||||||
At September 30, 2013 | |||||||||||||
Mortgage and Asset-Backed Securitizations | Collateralized Debt Obligations | Municipal Tender Option Bonds | Other Structured Financings | Other | |||||||||
(dollars in millions) | |||||||||||||
VIE assets that the Company does not consolidate | |||||||||||||
(unpaid principal balance)(1) | $ | 163,017 | $ | 26,153 | $ | 3,129 | $ | 1,802 | $ | 10,036 | |||
Maximum exposure to loss: | |||||||||||||
Debt and equity interests(2) | $ | 14,257 | $ | 1,920 | $ | 21 | $ | 1,071 | $ | 2,965 | |||
Derivative and other contracts | 10 | 23 | 1,975 | — | 164 | ||||||||
Commitments, guarantees and other | — | 142 | — | 656 | 640 | ||||||||
Total maximum exposure to loss | $ | 14,267 | $ | 2,085 | $ | 1,996 | $ | 1,727 | $ | 3,769 | |||
Carrying value of exposure to loss—Assets: | |||||||||||||
Debt and equity interests(2) | $ | 14,257 | $ | 1,920 | $ | 21 | $ | 670 | $ | 2,965 | |||
Derivative and other contracts | 10 | 4 | 4 | — | 73 | ||||||||
Total carrying value of exposure to loss—Assets | $ | 14,267 | $ | 1,924 | $ | 25 | $ | 670 | $ | 3,038 | |||
Carrying value of exposure to loss—Liabilities: | |||||||||||||
Derivative and other contracts | $ | — | $ | 2 | $ | 1 | $ | — | $ | 55 | |||
Commitments, guarantees and other | — | — | — | 9 | — | ||||||||
Total carrying value of exposure to loss—Liabilities | $ | — | $ | 2 | $ | 1 | $ | 9 | $ | 55 | |||
(1) Mortgage and asset-backed securitizations include VIE assets as follows: $17.2 billion of residential mortgages; $47.5 billion of commercial mortgages; $56.9 billion of U.S. agency collateralized mortgage obligations; and $41.4 billion of other consumer or commercial loans. | |||||||||||||
(2) Mortgage and asset-backed securitizations include VIE debt and equity interests as follows: $1.7 billion of residential mortgages; $1.1 billion of commercial mortgages; $7.5 billion of U.S. agency collateralized mortgage obligations; and $4.0 billion of other consumer or commercial loans. | |||||||||||||
At December 31, 2012 | |||||||||||||
Mortgage and Asset-Backed Securitizations | Collateralized Debt Obligations | Municipal Tender Option Bonds | Other Structured Financings | Other | |||||||||
(dollars in millions) | |||||||||||||
VIE assets that the Company does not consolidate | |||||||||||||
(unpaid principal balance)(1) | $ | 251,689 | $ | 13,178 | $ | 3,390 | $ | 1,811 | $ | 14,029 | |||
Maximum exposure to loss: | |||||||||||||
Debt and equity interests(2) | $ | 22,280 | $ | 1,173 | $ | — | $ | 1,053 | $ | 3,387 | |||
Derivative and other contracts | 154 | 51 | 2,158 | — | 562 | ||||||||
Commitments, guarantees and other | 66 | — | — | 679 | 384 | ||||||||
Total maximum exposure to loss | $ | 22,500 | $ | 1,224 | $ | 2,158 | $ | 1,732 | $ | 4,333 | |||
Carrying value of exposure to loss—Assets: | |||||||||||||
Debt and equity interests(2) | $ | 22,280 | $ | 1,173 | $ | — | $ | 663 | $ | 3,387 | |||
Derivative and other contracts | 156 | 8 | 4 | — | 174 | ||||||||
Total carrying value of exposure to loss—Assets | $ | 22,436 | $ | 1,181 | $ | 4 | $ | 663 | $ | 3,561 | |||
Carrying value of exposure to loss—Liabilities: | |||||||||||||
Derivative and other contracts | $ | 11 | $ | 2 | $ | — | $ | — | $ | 172 | |||
Commitments, guarantees and other | — | — | — | 12 | — | ||||||||
Total carrying value of exposure to loss—Liabilities | $ | 11 | $ | 2 | $ | — | $ | 12 | $ | 172 | |||
(1) Mortgage and asset-backed securitizations include VIE assets as follows: $18.3 billion of residential mortgages; $53.8 billion of commercial mortgages; $126.3 billion of U.S. agency collateralized mortgage obligations; and $53.3 billion of other consumer or commercial loans. | |||||||||||||
(2) Mortgage and asset-backed securitizations include VIE debt and equity interests as follows: $1.0 billion of residential mortgages; $1.5 billion of commercial mortgages; $14.8 billion of U.S. agency collateralized mortgage obligations; and $5.0 billion of other consumer or commercial loans. | |||||||||||||
The Company's maximum exposure to loss often differs from the carrying value of the variable interests held by the Company. The maximum exposure to loss is dependent on the nature of the Company's variable interest in the VIEs and is limited to the notional amounts of certain liquidity facilities, other credit support, total return swaps, written put options, and the fair value of certain other derivatives and investments the Company has made in the VIEs. Liabilities issued by VIEs generally are non-recourse to the Company. Where notional amounts are utilized in quantifying maximum exposure related to derivatives, such amounts do not reflect fair value writedowns already recorded by the Company. | |||||||||||||
The Company's maximum exposure to loss does not include the offsetting benefit of any financial instruments that the Company may utilize to hedge these risks associated with the Company's variable interests. In addition, the Company's maximum exposure to loss is not reduced by the amount of collateral held as part of a transaction with the VIE or any party to the VIE directly against a specific exposure to loss. | |||||||||||||
Securitization transactions generally involve VIEs. Primarily as a result of its secondary market-making activities, the Company owned additional securities issued by securitization SPEs for which the maximum exposure to loss is less than specific thresholds. These additional securities totaled $10.2 billion at September 30, 2013. These securities were either retained in connection with transfers of assets by the Company, acquired in connection with secondary market-making activities or held in the Company's available for sale portfolio (see Note 5). Securities issued by securitization SPEs consist of $6.0 billion of securities backed primarily by residential mortgage loans, $0.9 billion of securities backed by U.S. agency collateralized mortgage obligations, $1.0 billion of securities backed by commercial mortgage loans, $0.4 billion of securities backed by collateralized debt obligations or collateralized loan obligations and $1.9 billion backed by other consumer loans, such as credit card receivables, automobile loans and student loans. The Company's primary risk exposure is to the securities issued by the SPE owned by the Company, with the risk highest on the most subordinate class of beneficial interests. These securities generally are included in Trading assets—Corporate and other debt or Securities available for sale and are measured at fair value (see Note 4). The Company does not provide additional support in these transactions through contractual facilities, such as liquidity facilities, guarantees or similar derivatives. The Company's maximum exposure to loss generally equals the fair value of the securities owned. | |||||||||||||
The Company's transactions with VIEs primarily include securitizations, municipal tender option bond trusts, credit protection purchased through CLNs, other structured financings, collateralized loan and debt obligations, equity-linked notes, managed real estate partnerships and asset management investment funds. The Company's continuing involvement in VIEs that it does not consolidate can include ownership of retained interests in Company-sponsored transactions, interests purchased in the secondary market (both for Company-sponsored transactions and transactions sponsored by third parties), derivatives with securitization SPEs (primarily interest rate derivatives in commercial mortgage and residential mortgage securitizations and credit derivatives in which the Company has purchased protection in synthetic CDOs), and as servicer in residential mortgage securitizations in the U.S. and Europe and commercial mortgage securitizations in Europe. Such activities are further described in Note 7 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K. | |||||||||||||
Transfers of Assets with Continuing Involvement. | |||||||||||||
The following tables present information at September 30, 2013 regarding transactions with SPEs in which the Company, acting as principal, transferred financial assets with continuing involvement and received sales treatment: | |||||||||||||
At September 30, 2013 | |||||||||||||
Residential Mortgage Loans | Commercial Mortgage Loans | U.S. Agency Collateralized Mortgage Obligations | Credit-Linked Notes and Other | ||||||||||
(dollars in millions) | |||||||||||||
SPE assets (unpaid principal balance)(1) | $ | 33,610 | $ | 54,648 | $ | 18,348 | $ | 12,436 | |||||
Retained interests (fair value): | |||||||||||||
Investment grade | $ | — | $ | 10 | $ | 698 | $ | — | |||||
Non-investment grade | 128 | 226 | — | 1,322 | |||||||||
Total retained interests (fair value) | $ | 128 | $ | 236 | $ | 698 | $ | 1,322 | |||||
Interests purchased in the secondary market (fair value): | |||||||||||||
Investment grade | $ | 4 | $ | 80 | $ | 27 | $ | 351 | |||||
Non-investment grade | 82 | 57 | — | 65 | |||||||||
Total interests purchased in the secondary market (fair value) | $ | 86 | $ | 137 | $ | 27 | $ | 416 | |||||
Derivative assets (fair value) | $ | — | $ | 729 | $ | — | $ | 123 | |||||
Derivative liabilities (fair value) | $ | 2 | $ | — | $ | — | $ | 184 | |||||
_____________ | |||||||||||||
(1) Amounts include assets transferred by unrelated transferors. | |||||||||||||
At September 30, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
(dollars in millions) | |||||||||||||
Retained interests (fair value): | |||||||||||||
Investment grade | $ | — | $ | 708 | $ | — | $ | 708 | |||||
Non-investment grade | — | 198 | 1,478 | 1,676 | |||||||||
Total retained interests (fair value) | $ | — | $ | 906 | $ | 1,478 | $ | 2,384 | |||||
Interests purchased in the secondary market (fair value): | |||||||||||||
Investment grade | $ | — | $ | 454 | $ | 8 | $ | 462 | |||||
Non-investment grade | — | 179 | 25 | 204 | |||||||||
Total interests purchased in the secondary market (fair value) | $ | — | $ | 633 | $ | 33 | $ | 666 | |||||
Derivative assets (fair value) | $ | — | $ | 624 | $ | 228 | $ | 852 | |||||
Derivative liabilities (fair value) | $ | — | $ | 172 | $ | 14 | $ | 186 | |||||
The following tables present information at December 31, 2012 regarding transactions with SPEs in which the Company, acting as principal, transferred assets with continuing involvement and received sales treatment: | |||||||||||||
At December 31, 2012 | |||||||||||||
Residential Mortgage Loans | Commercial Mortgage Loans | U.S. Agency Collateralized Mortgage Obligations | Credit-Linked Notes and Other | ||||||||||
(dollars in millions) | |||||||||||||
SPE assets (unpaid principal balance)(1) | $ | 36,750 | $ | 70,824 | $ | 17,787 | $ | 14,701 | |||||
Retained interests (fair value): | |||||||||||||
Investment grade | $ | 1 | $ | 77 | $ | 1,468 | $ | — | |||||
Non-investment grade | 54 | 109 | — | 1,503 | |||||||||
Total retained interests (fair value) | $ | 55 | $ | 186 | $ | 1,468 | $ | 1,503 | |||||
Interests purchased in the secondary market (fair value): | |||||||||||||
Investment grade | $ | 11 | $ | 124 | $ | 99 | $ | 389 | |||||
Non-investment grade | 113 | 34 | — | 31 | |||||||||
Total interests purchased in the secondary market (fair value) | $ | 124 | $ | 158 | $ | 99 | $ | 420 | |||||
Derivative assets (fair value) | $ | 2 | $ | 948 | $ | — | $ | 177 | |||||
Derivative liabilities (fair value) | $ | 22 | $ | — | $ | — | $ | 303 | |||||
_____________ | |||||||||||||
(1) Amounts include assets transferred by unrelated transferors. | |||||||||||||
At December 31, 2012 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
(dollars in millions) | |||||||||||||
Retained interests (fair value): | |||||||||||||
Investment grade | $ | — | $ | 1,476 | $ | 70 | $ | 1,546 | |||||
Non-investment grade | — | 84 | 1,582 | 1,666 | |||||||||
Total retained interests (fair value) | $ | — | $ | 1,560 | $ | 1,652 | $ | 3,212 | |||||
Interests purchased in the secondary market (fair value): | |||||||||||||
Investment grade | $ | — | $ | 617 | $ | 6 | $ | 623 | |||||
Non-investment grade | — | 139 | 39 | 178 | |||||||||
Total interests purchased in the secondary market (fair value) | $ | — | $ | 756 | $ | 45 | $ | 801 | |||||
Derivative assets (fair value) | $ | — | $ | 774 | $ | 353 | $ | 1,127 | |||||
Derivative liabilities (fair value) | $ | — | $ | 295 | $ | 30 | $ | 325 | |||||
Transferred assets are carried at fair value prior to securitization, and any changes in fair value are recognized in the condensed consolidated statements of income. The Company may act as underwriter of the beneficial interests issued by securitization vehicles. Investment banking underwriting net revenues are recognized in connection with these transactions. The Company may retain interests in the securitized financial assets as one or more tranches of the securitization. These retained interests are included in the condensed consolidated statements of financial condition at fair value. Any changes in the fair value of such retained interests are recognized in the condensed consolidated statements of income. | |||||||||||||
Net gains on sales of assets in securitization transactions at the time of the sale were not material in the nine months ended September 30, 2013 and 2012. | |||||||||||||
During the nine months ended September 30, 2013 and 2012, the Company received proceeds from new securitization transactions of $18.8 billion and $13.7 billion, respectively. During the nine months ended September 30, 2013 and 2012, the Company received proceeds from cash flows from retained interests in securitization transactions of $3.8 billion and $3.2 billion, respectively. | |||||||||||||
The Company has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Company (see Note 12). | |||||||||||||
Failed Sales. | |||||||||||||
In order to be treated as a sale of assets for accounting purposes, a transaction must meet all of the criteria stipulated in the accounting guidance for the transfer of financial assets. If the transfer fails to meet these criteria, that transfer of financial assets is treated as a failed sale. In such case for transfers to VIEs and securitizations, the Company continues to recognize the assets in Trading assets, and the Company recognizes the associated liabilities in Other secured financings in the condensed consolidated statements of financial condition (see Note 10). | |||||||||||||
The assets transferred to many unconsolidated VIEs in transactions accounted for as failed sales cannot be removed unilaterally by the Company and are not generally available to the Company. The related liabilities issued by many unconsolidated VIEs are non-recourse to the Company. In certain other failed sale transactions, the Company has the unilateral right to remove assets or provide additional recourse through derivatives such as total return swaps, guarantees or other forms of involvement. | |||||||||||||
The following table presents information about the carrying value (equal to fair value) of assets and liabilities resulting from transfers of financial assets treated by the Company as secured financings: | |||||||||||||
At September 30, 2013 | At December 31, 2012 | ||||||||||||
Carrying Value of | Carrying Value of | ||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||
(dollars in millions) | |||||||||||||
Credit-linked notes | $ | 48 | $ | 41 | $ | 283 | $ | 222 | |||||
Equity-linked transactions | 39 | 35 | 422 | 405 | |||||||||
Other | 360 | 359 | 29 | 28 | |||||||||
Mortgage Servicing Activities. | |||||||||||||
Mortgage Servicing Rights. The Company may retain servicing rights to certain mortgage loans that are sold. These transactions create an asset referred to as MSRs, which totaled approximately $8 million and $7 million at September 30, 2013 and December 31, 2012, respectively, and are included within Intangible assets and carried at fair value in the condensed consolidated statements of financial condition. | |||||||||||||
SPE Mortgage Servicing Activities. The Company services residential mortgage loans in the U.S. and in Europe and commercial mortgage loans in Europe owned by SPEs, including SPEs sponsored by the Company and SPEs not sponsored by the Company. The Company generally holds retained interests in Company-sponsored SPEs. In some cases, as part of its market-making activities, the Company may own some beneficial interests issued by both Company-sponsored and non-Company sponsored SPEs. | |||||||||||||
The Company provides no credit support as part of its servicing activities. The Company is required to make servicing advances to the extent that it believes that such advances will be reimbursed. Reimbursement of servicing advances is a senior obligation of the SPE, senior to the most senior beneficial interests outstanding. Outstanding advances are included in Other assets and are recorded at cost, net of allowances. Advances at September 30, 2013 and December 31, 2012 totaled approximately $88 million and $49 million, respectively. There were no allowances at September 30, 2013 and December 31, 2012. | |||||||||||||
The following tables present information about the Company's mortgage servicing activities for SPEs to which the Company transferred loans at September 30, 2013 and December 31, 2012: | |||||||||||||
At September 30, 2013 | |||||||||||||
Residential Mortgage Unconsolidated SPEs | Residential Mortgage Consolidated SPEs | Commercial Mortgage Unconsolidated SPEs | |||||||||||
(dollars in millions) | |||||||||||||
Assets serviced (unpaid principal balance) | $ | 780 | $ | 818 | $ | 4,041 | |||||||
Amounts past due 90 days or greater | |||||||||||||
(unpaid principal balance)(1) | $ | 75 | $ | 45 | $ | — | |||||||
Percentage of amounts past due 90 days | |||||||||||||
or greater(1) | 9.60% | 5.50% | — | ||||||||||
Credit losses | $ | 2 | $ | 12 | $ | — | |||||||
_____________ | |||||||||||||
(1) Amounts include loans that are at least 90 days contractually delinquent, loans for which the borrower has filed for bankruptcy, loans in foreclosure and real estate owned. | |||||||||||||
At December 31, 2012 | |||||||||||||
Residential Mortgage Unconsolidated SPEs | Residential Mortgage Consolidated SPEs | Commercial Mortgage Unconsolidated SPEs | |||||||||||
(dollars in millions) | |||||||||||||
Assets serviced (unpaid principal balance) | $ | 821 | $ | 1,141 | $ | 4,760 | |||||||
Amounts past due 90 days or greater | |||||||||||||
(unpaid principal balance)(1) | $ | 86 | $ | 43 | $ | — | |||||||
Percentage of amounts past due 90 days | |||||||||||||
or greater(1) | 10.40% | 3.80% | — | ||||||||||
Credit losses | $ | 3 | $ | 2 | $ | — | |||||||
_____________ | |||||||||||||
(1) Amounts include loans that are at least 90 days contractually delinquent, loans for which the borrower has filed for bankruptcy, loans in foreclosure and real estate owned. | |||||||||||||
Financing_Receivables
Financing Receivables | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Financing Receivables [Abstract] | ' | |||||||||||
Financing Receivables | ' | |||||||||||
8. Financing Receivables and Allowance for Credit Losses. | ||||||||||||
Loans held for investment. | ||||||||||||
The Company's loans held for investment are recorded at amortized cost and classified as Loans in the condensed consolidated statements of financial condition. | ||||||||||||
The Company's loans held for investment at September 30, 2013 and December 31, 2012 included the following: | ||||||||||||
At | At | |||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||
(dollars in millions) | ||||||||||||
Commercial and industrial | $ | 11,953 | $ | 9,449 | ||||||||
Consumer loans | 10,299 | 7,618 | ||||||||||
Residential real estate loans | 8,784 | 6,630 | ||||||||||
Wholesale real estate loans | 2,102 | 326 | ||||||||||
Total loans held for investment, gross of allowance for loan losses | 33,138 | 24,023 | ||||||||||
Allowance for loan losses | -166 | -106 | ||||||||||
Total loans held for investment, net of allowance for loan losses | $ | 32,972 | $ | 23,917 | ||||||||
The above table does not include loans held for sale of $4,762 million and $5,129 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||
The Company's Credit Risk Management Department evaluates new obligors before credit transactions are initially approved, and at least annually thereafter for consumer and industrial loans. For commercial loans, credit evaluations typically involve the evaluation of financial statements, assessment of leverage, liquidity, capital strength, asset composition and quality, market capitalization and access to capital markets, cash flow projections and debt service requirements, and the adequacy of collateral, if applicable. The Company's Credit Risk Management Department will also evaluate strategy, market position, industry dynamics, obligor's management and other factors that could affect the obligor's risk profile. For residential real estate and consumer loans, the initial credit evaluation includes, but is not limited to, review of the obligor's income, net worth, liquidity, collateral, loan-to-value ratio, and credit bureau information. Subsequent credit monitoring for residential real estate loans is performed at the portfolio level. Consumer loan collateral values are monitored on an ongoing basis. | ||||||||||||
Commercial and industrial loans of approximately $117 million and wholesale real estate loans of approximately $4 million were impaired, for which there was a related allowance for loan losses of $23 million, at September 30, 2013. Approximately 99% of the Company's loan portfolio was current at September 30, 2013. Commercial and industrial loans of approximately $19 million and residential real estate loans of approximately $1 million were impaired, for which there was a related allowance for loan losses of $2 million, at December 31, 2012. Approximately 99% of the Company's loan portfolio was current at December 31, 2012. | ||||||||||||
The Company assigned an internal grade of “doubtful” to certain commercial asset-backed and wholesale real estate loans totaling $21 million and $25 million at September 30, 2013 and December 31, 2012, respectively. Doubtful loans can be classified as current if the borrower is making payments in accordance with the loan agreement. The Company assigned an internal grade of “pass” to the majority of its remaining loan portfolio. | ||||||||||||
For a description of the Company's loan portfolio and credit quality indicators utilized in its credit monitoring process, see Note 8 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K. | ||||||||||||
The table below summarizes information about the allowance for loan losses, loans by impairment methodology, the allowance for lending-related commitments and lending-related commitments by impairment methodology. | ||||||||||||
Commercial and Industrial | Consumer | Residential Real Estate | Wholesale Real Estate | |||||||||
Total | ||||||||||||
(dollars in millions) | ||||||||||||
Allowance for loan losses: | ||||||||||||
Balance at December 31, 2012 | $ | 96 | $ | 3 | $ | 5 | $ | 2 | $ | 106 | ||
Gross charge-offs | -12 | — | -1 | -2 | -15 | |||||||
Net charge-offs | -12 | — | -1 | -2 | -15 | |||||||
Provision for loan losses(1) | 64 | -2 | — | 13 | 75 | |||||||
Balance at September 30, 2013 | $ | 148 | $ | 1 | $ | 4 | $ | 13 | $ | 166 | ||
Allowance for loan losses by impairment methodology: | ||||||||||||
Collectively evaluated for impairment | $ | 129 | $ | 1 | $ | 4 | $ | 9 | $ | 143 | ||
Individually evaluated for impairment | 19 | — | — | 4 | 23 | |||||||
Total allowance for loan losses at September 30, | ||||||||||||
2013 | $ | 148 | $ | 1 | $ | 4 | $ | 13 | $ | 166 | ||
Loans evaluated by impairment methodology(2): | ||||||||||||
Collectively evaluated for impairment | $ | 11,826 | $ | 10,299 | $ | 8,776 | $ | 2,092 | $ | 32,993 | ||
Individually evaluated for impairment | 127 | — | 8 | 10 | 145 | |||||||
Total loans evaluated at September 30, 2013 | $ | 11,953 | $ | 10,299 | $ | 8,784 | $ | 2,102 | $ | 33,138 | ||
Allowance for lending-related commitments: | ||||||||||||
Balance at December 31, 2012 | $ | 90 | $ | — | $ | — | $ | 1 | $ | 91 | ||
Provision for lending-related commitments(3) | 41 | — | — | — | 41 | |||||||
Other | -10 | — | — | — | -10 | |||||||
Balance at September 30, 2013 | $ | 121 | $ | — | $ | — | $ | 1 | $ | 122 | ||
Allowance for lending-related commitments by | ||||||||||||
impairment methodology: | ||||||||||||
Collectively evaluated for impairment | $ | 121 | $ | — | $ | — | $ | 1 | $ | 122 | ||
Individually evaluated for impairment | — | — | — | — | — | |||||||
Total allowance for lending-related commitments | ||||||||||||
at September 30, 2013 | $ | 121 | $ | — | $ | — | $ | 1 | $ | 122 | ||
Lending-related commitments evaluated by | ||||||||||||
impairment methodology: | ||||||||||||
Collectively evaluated for impairment | $ | 57,137 | $ | 1,770 | $ | 1,407 | $ | 234 | $ | 60,548 | ||
Individually evaluated for impairment | — | — | — | — | — | |||||||
Total lending-related commitments evaluated | ||||||||||||
at September 30, 2013 | $ | 57,137 | $ | 1,770 | $ | 1,407 | $ | 234 | $ | 60,548 | ||
_______________ | ||||||||||||
(1) The Company recorded $41 million of provision for loan losses within Other revenues for the quarter ended September 30, 2013. | ||||||||||||
(2) Balances are gross of the allowance and represent recorded investment in the loans. | ||||||||||||
(3) The Company recorded $12 million of provision for lending-related commitments within Other non-interest expenses for the quarter ended September 30, 2013. | ||||||||||||
Commercial and Industrial | Consumer | Residential Real Estate | Wholesale Real Estate | |||||||||
Total | ||||||||||||
(dollars in millions) | ||||||||||||
Allowance for loan losses: | ||||||||||||
Balance at December 31, 2011 | $ | 14 | $ | 1 | $ | 1 | $ | 1 | $ | 17 | ||
Gross charge-offs | -12 | — | — | — | -12 | |||||||
Gross recoveries | — | — | — | 11 | 11 | |||||||
Net charge-offs | -12 | — | — | 11 | -1 | |||||||
Provision for loan losses(1) | 86 | 6 | 2 | -9 | 85 | |||||||
Balance at September 30, 2012 | $ | 88 | $ | 7 | $ | 3 | $ | 3 | $ | 101 | ||
Allowance for loan losses by impairment methodology: | ||||||||||||
Collectively evaluated for impairment | $ | 94 | $ | 3 | $ | 5 | $ | 2 | $ | 104 | ||
Individually evaluated for impairment | 2 | — | — | — | 2 | |||||||
Total allowance for loan losses at December 31, 2012 | $ | 96 | $ | 3 | $ | 5 | $ | 2 | $ | 106 | ||
Loans evaluated by impairment methodology(2): | ||||||||||||
Collectively evaluated for impairment | $ | 9,419 | $ | 7,618 | $ | 6,629 | $ | 326 | $ | 23,992 | ||
Individually evaluated for impairment | 30 | — | 1 | — | 31 | |||||||
Total loan evaluated at December 31, 2012 | $ | 9,449 | $ | 7,618 | $ | 6,630 | $ | 326 | $ | 24,023 | ||
Allowance for lending-related commitments: | ||||||||||||
Balance at December 31, 2011 | $ | 19 | $ | 3 | $ | — | $ | 2 | $ | 24 | ||
Provision for lending-related commitments(3) | 43 | -1 | — | — | 42 | |||||||
Balance at September 30, 2012 | $ | 62 | $ | 2 | $ | — | $ | 2 | $ | 66 | ||
Allowance for lending-related commitments by | ||||||||||||
impairment methodology: | ||||||||||||
Collectively evaluated for impairment | $ | 86 | $ | — | $ | — | $ | 1 | $ | 87 | ||
Individually evaluated for impairment | 4 | — | — | — | 4 | |||||||
Total allowance for lending-related commitments | ||||||||||||
at December 31, 2012 | $ | 90 | $ | — | $ | — | $ | 1 | $ | 91 | ||
Lending-related commitments evaluated by | ||||||||||||
impairment methodology: | ||||||||||||
Collectively evaluated for impairment | $ | 44,079 | $ | 1,406 | $ | 712 | $ | 101 | $ | 46,298 | ||
Individually evaluated for impairment | 47 | — | — | — | 47 | |||||||
Total lending-related commitments evaluated | ||||||||||||
at December 31, 2012 | $ | 44,126 | $ | 1,406 | $ | 712 | $ | 101 | $ | 46,345 | ||
_______________ | ||||||||||||
(1) The Company recorded $31 million of provision for loan losses within Other revenues for the quarter ended September 30, 2012. | ||||||||||||
(2) Balances are gross of the allowance and represent recorded investment in the loans. | ||||||||||||
(3) The Company recorded $34 million of provision for lending-related commitments within Other non-interest expenses for the quarter ended September 30, 2012. | ||||||||||||
Employee Loans. | ||||||||||||
Employee loans are granted primarily in conjunction with a program established in the Wealth Management business segment to retain and recruit certain employees. These loans are recorded in Customer and other receivables in the condensed consolidated statements of financial condition. These loans are full recourse, generally require periodic payments and have repayment terms ranging from one to 12 years. The Company establishes a reserve for loan amounts it does not consider recoverable, which is recorded in Compensation and benefits expense. At September 30, 2013, the Company had $5,533 million of employee loans, net of an allowance of approximately $124 million. At December 31, 2012, the Company had $5,998 million of employee loans, net of an allowance of approximately $131 million. | ||||||||||||
The Company has also granted loans to other employees primarily in conjunction with certain after-tax leveraged investment arrangements. At September 30, 2013, the balance of these loans was $139 million, net of an allowance of approximately $99 million. At December 31, 2012, the balance of these loans was $172 million, net of an allowance of approximately $108 million. The Company establishes a reserve for non-recourse loan amounts not recoverable from employees, which is recorded in Other expense. | ||||||||||||
Collateralized Transactions. | ||||||||||||
In certain instances, the Company enters into reverse repurchase agreements and securities borrowed transactions to acquire securities to cover short positions, to settle other securities obligations and to accommodate customers' needs. The Company also engages in securities financing transactions for customers through margin lending (see Note 6). | ||||||||||||
Servicing Advances. | ||||||||||||
As part of its servicing activities, the Company may make servicing advances to the extent that it believes that such advances will be reimbursed (see Note 7). | ||||||||||||
Goodwill_and_Net_Intangible_As
Goodwill and Net Intangible Assets | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Goodwill and Net Intangible Assets | ' | ||||||||
Goodwill And Net Intangible Assets | ' | ||||||||
9. Goodwill and Net Intangible Assets. | |||||||||
The Company tests goodwill for impairment on an annual basis and on an interim basis when certain events or circumstances exist. The Company tests for impairment at the reporting unit level, which is generally at the level of or one level below its business segments. For both the annual and interim tests, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after assessing the totality of events or circumstances, the Company determines it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then performing the two-step impairment test is not required. However, if the Company concludes otherwise, then it is required to perform the first step of the two-step impairment test. Goodwill impairment is determined by comparing the estimated fair value of a reporting unit with its respective carrying value. If the estimated fair value exceeds the carrying value, goodwill at the reporting unit level is not deemed to be impaired. If the estimated fair value is below carrying value, however, further analysis is required to determine the amount of the impairment. Additionally, if the carrying value of a reporting unit is zero or a negative value and it is determined that it is more likely than not the goodwill is impaired, further analysis is required. The estimated fair values of the reporting units are derived based on valuation techniques the Company believes market participants would use for each of the reporting units. | |||||||||
The estimated fair values are generally determined utilizing methodologies that incorporate price-to-book and price-to-earnings multiples of certain comparable companies. The Company also utilizes a discounted cash flow methodology for certain reporting units. | |||||||||
The Company completed its annual goodwill impairment testing at July 1, 2013. The Company's testing did not indicate any goodwill impairment as each of the Company's reporting units with goodwill had a fair value that was substantially in excess of its carrying value. Adverse market or economic events could result in impairment charges in future periods. At December 31, 2012, each of the Company's reporting units with goodwill also had a fair value that was substantially in excess of its carrying value. | |||||||||
Goodwill. | |||||||||
Changes in the carrying amount of the Company's goodwill, net of accumulated impairment losses for the nine months ended September 30, 2013, were as follows: | |||||||||
Institutional Securities(1) | Wealth Management(1) | Investment Management | Total | ||||||
(dollars in millions) | |||||||||
Goodwill at December 31, 2012(2) | $ | 337 | $ | 5,573 | $ | 740 | $ | 6,650 | |
Foreign currency translation adjustments and other | -31 | ─ | ─ | -31 | |||||
Goodwill disposed of during the period(3)(4) | -17 | -11 | ─ | -28 | |||||
Goodwill at September 30, 2013(2) | $ | 289 | $ | 5,562 | $ | 740 | $ | 6,591 | |
_____________ | |||||||||
(1) On January 1, 2013, the International Wealth Management business was transferred from the Wealth Management business segment to the Equity division within the Institutional Securities business segment. Accordingly, prior period amounts have been recast to reflect the International Wealth Management business as part of the Institutional Securities business segment. | |||||||||
(2) The amount of the Company's goodwill before accumulated impairments of $700 million, which included $673 million related to the Institutional Securities business segment and $27 million related to the Investment Management business segment, was $7,291 million and $7,350 million at September 30, 2013 and December 31, 2012, respectively. | |||||||||
(3) In 2011, the Company announced that it had reached an agreement with the employees of its in-house quantitative proprietary trading unit, Process Driven Trading (“PDT”), within the Institutional Securities business segment, whereby PDT employees will acquire certain assets from the Company and launch an independent advisory firm. This transaction closed on January 1, 2013. | |||||||||
(4) The Wealth Management business segment sold the U.K. operations of Global Stock Plan Services business to Computershare Limited. This transaction closed on May 31, 2013. | |||||||||
Net Intangible Assets. | |||||||||
Changes in the carrying amount of the Company's intangible assets for the nine months ended September 30, 2013 were as follows: | |||||||||
Institutional Securities | Wealth Management | Investment Management | Total | ||||||
(dollars in millions) | |||||||||
Amortizable net intangible assets at December 31, 2012 | $ | 175 | $ | 3,600 | $ | 1 | $ | 3,776 | |
Mortgage servicing rights (see Note 7) | — | 7 | — | 7 | |||||
Net intangible assets at December 31, 2012 | $ | 175 | $ | 3,607 | $ | 1 | $ | 3,783 | |
Amortizable net intangible assets at December 31, 2012 | $ | 175 | $ | 3,600 | $ | 1 | $ | 3,776 | |
Foreign currency translation adjustments and other | -2 | — | — | -2 | |||||
Amortization expense | -9 | -250 | — | -259 | |||||
Impairment losses(1) | -2 | -7 | — | -9 | |||||
Amortizable net intangible assets at September 30, 2013 | 162 | 3,343 | 1 | 3,506 | |||||
Mortgage servicing rights (see Note 7) | — | 8 | — | 8 | |||||
Net intangible assets at September 30, 2013 | $ | 162 | $ | 3,351 | $ | 1 | $ | 3,514 | |
____________ | |||||||||
(1) Impairment losses are recorded within Other expenses. | |||||||||
Borrowings_and_Other_Secured_F
Borrowings and Other Secured Financings | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Borrowings and Other Secured Financings | ' | ||||||
Long-Term Borrowings and Other Secured Financings | ' | ||||||
10. Long-Term Borrowings and Other Secured Financings. | |||||||
The Company's long-term borrowings included the following components: | |||||||
At | At | ||||||
30-Sep-13 | 31-Dec-12 | ||||||
(dollars in millions) | |||||||
Senior debt | $ | 145,515 | $ | 158,899 | |||
Subordinated debt | 7,478 | 5,845 | |||||
Junior subordinated debentures | 4,812 | 4,827 | |||||
Total | $ | 157,805 | $ | 169,571 | |||
During the nine months ended September 30, 2013, the Company issued and reissued notes with a principal amount of approximately $25 billion. This amount included the Company's issuances of $2.0 billion in 10 year subordinated debt on May 21, 2013, $3.7 billion in senior unsecured debt on April 25, 2013 and $4.5 billion in senior unsecured debt on February 25, 2013. During the nine months ended September 30, 2013, approximately $31 billion in aggregate long-term borrowings matured or were retired. | |||||||
The weighted average maturity of the Company's long-term borrowings, based upon stated maturity dates, was approximately 5.3 years at September 30, 2013 and December 31, 2012. | |||||||
Other Secured Financings. | |||||||
Other secured financings include the liabilities related to transfers of financial assets that are accounted for as financings rather than sales, consolidated VIEs where the Company is deemed to be the primary beneficiary, pledged commodities, certain equity-linked notes and other secured borrowings. See Note 7 for further information on other secured financings related to VIEs and securitization activities. | |||||||
The Company's other secured financings consisted of the following: | |||||||
At September 30, 2013 | At December 31, 2012 | ||||||
(dollars in millions) | |||||||
Secured financings with original maturities greater than one year | $ | 10,163 | $ | 14,431 | |||
Secured financings with original maturities one year or less | 3,930 | 641 | |||||
Failed sales(1) | 435 | 655 | |||||
Total(2) | $ | 14,528 | $ | 15,727 | |||
___________ | |||||||
(1) For more information on failed sales, see Note 7. | |||||||
(2) Amounts include $6,145 million and $9,466 million at fair value at September 30, 2013 and December 31, 2012, respectively. | |||||||
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Derivative Instrument Detail [Abstract] | ' | |||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | |||||||||||||||||||
11. Derivative Instruments and Hedging Activities. | ||||||||||||||||||||
The Company trades, makes markets and takes proprietary positions globally in listed futures, OTC swaps, forwards, options and other derivatives referencing, among other things, interest rates, currencies, investment grade and non-investment grade corporate credits, loans, bonds, U.S. and other sovereign securities, emerging market bonds and loans, credit indices, asset-backed security indices, property indices, mortgage-related and other asset-backed securities, and real estate loan products. The Company uses these instruments for trading, foreign currency exposure management and asset and liability management. | ||||||||||||||||||||
The Company manages its trading positions by employing a variety of risk mitigation strategies. These strategies include diversification of risk exposures and hedging. Hedging activities consist of the purchase or sale of positions in related securities and financial instruments, including a variety of derivative products (e.g., futures, forwards, swaps and options). The Company manages the market risk associated with its trading activities on a Company-wide basis, on a worldwide trading division level and on an individual product basis. | ||||||||||||||||||||
In connection with its derivative activities, the Company generally enters into master netting agreements and collateral agreements with its counterparties. These agreements provide the Company with the right, in the event of a default by the counterparty (such as bankruptcy or a failure to pay or perform), to net a counterparty's rights and obligations under the agreement and to liquidate and setoff collateral against any net amount owed by the counterparty. However, in certain circumstances: the Company may not have such an agreement in place; the relevant insolvency regime (which is based on the type of counterparty entity and the jurisdiction of organization of the counterparty) may not support the enforceability of the agreement; or the Company may not have sought legal advice to support the enforceability of the agreement. In cases where the Company has not determined an agreement to be enforceable, the related amounts are not offset in the tabular disclosures. The Company's policy is generally to receive securities and cash posted as collateral (with rights of rehypothecation), irrespective of the enforceability determination regarding the master netting and collateral agreement. In certain cases the Company may agree for such collateral to be posted to a third party custodian under a control agreement that enables the Company to take control of such collateral in the event of a counterparty default. The enforceability of the master netting agreement is taken into account in the Company's risk management practices and application of counterparty credit limits. The following tables present information about the offsetting of derivative instruments and related collateral amounts. See information related to offsetting of certain collateralized transactions in Note 6. | ||||||||||||||||||||
At September 30, 2013 | ||||||||||||||||||||
Gross Amounts(1) | Amounts Offset in the Condensed Consolidated Statements of Financial Condition(2) | Net Amounts Presented in the Condensed Consolidated Statements of Financial Condition | Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition(3) | Net Exposure | ||||||||||||||||
Financial Instruments Collateral | Other Cash Collateral | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivative assets | ||||||||||||||||||||
Bilateral OTC | $ | 450,627 | $ | -422,897 | $ | 27,730 | $ | -8,399 | $ | -79 | $ | 19,252 | ||||||||
Cleared OTC(4) | 284,888 | -284,147 | 741 | — | — | 741 | ||||||||||||||
Exchange traded | 34,487 | -27,520 | 6,967 | — | — | 6,967 | ||||||||||||||
Total derivative assets | $ | 770,002 | $ | -734,564 | $ | 35,438 | $ | -8,399 | $ | -79 | $ | 26,960 | ||||||||
Derivative liabilities | ||||||||||||||||||||
Bilateral OTC | $ | 427,774 | $ | -400,382 | $ | 27,392 | $ | -5,873 | $ | -151 | $ | 21,368 | ||||||||
Cleared OTC(4) | 285,023 | -284,827 | 196 | — | -49 | 147 | ||||||||||||||
Exchange traded | 38,100 | -27,520 | 10,580 | -2,395 | — | 8,185 | ||||||||||||||
Total derivative liabilities | $ | 750,897 | $ | -712,729 | $ | 38,168 | $ | -8,268 | $ | -200 | $ | 29,700 | ||||||||
(1) Amounts include $10.5 billion of derivative assets and $10.6 billion of derivative liabilities which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. See also “Fair Value and Notional of Derivative Instruments” for additional disclosure about gross fair values and notionals for derivative instruments by risk type. | ||||||||||||||||||||
(2) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default and where certain other criteria are met in accordance with applicable offsetting accounting guidance. | ||||||||||||||||||||
(3) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. | ||||||||||||||||||||
(4) Includes OTC derivatives that are centrally cleared in accordance with certain regulatory requirements. | ||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||
Gross Amounts(1) | Amounts Offset in the Condensed Consolidated Statements of Financial Condition(2) | Net Amounts Presented in the Condensed Consolidated Statements of Financial Condition | Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition(3) | Net Exposure | ||||||||||||||||
Financial Instruments Collateral | Other Cash Collateral | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivative assets | ||||||||||||||||||||
Bilateral OTC | $ | 604,713 | $ | -573,844 | $ | 30,869 | $ | -7,691 | $ | -232 | $ | 22,946 | ||||||||
Cleared OTC(4) | 375,233 | -374,546 | 687 | — | — | 687 | ||||||||||||||
Exchange traded | 24,305 | -19,664 | 4,641 | — | — | 4,641 | ||||||||||||||
Total derivative assets | $ | 1,004,251 | $ | -968,054 | $ | 36,197 | $ | -7,691 | $ | -232 | $ | 28,274 | ||||||||
Derivative Liabilities | ||||||||||||||||||||
Bilateral OTC | $ | 578,018 | $ | -547,285 | $ | 30,733 | $ | -7,871 | $ | -64 | $ | 22,798 | ||||||||
Cleared OTC(4) | 374,960 | -374,866 | 94 | — | -23 | 71 | ||||||||||||||
Exchange traded | 25,795 | -19,664 | 6,131 | -1,028 | — | 5,103 | ||||||||||||||
Total derivative liabilities | $ | 978,773 | $ | -941,815 | $ | 36,958 | $ | -8,899 | $ | -87 | $ | 27,972 | ||||||||
(1) Amounts include $7.2 billion of derivative assets and $7.3 billion of derivative liabilities which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. See also “Fair Value and Notional of Derivative Instruments” for additional disclosure about gross fair values and notionals for derivative instruments by risk type. | ||||||||||||||||||||
(2) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default and where certain other criteria are met in accordance with applicable offsetting accounting guidance. | ||||||||||||||||||||
(3) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. | ||||||||||||||||||||
(4) Includes OTC derivatives that are centrally cleared in accordance with certain regulatory requirements. | ||||||||||||||||||||
The Company incurs credit risk as a dealer in OTC derivatives. Credit risk with respect to derivative instruments arises from the failure of a counterparty to perform according to the terms of the contract. The Company's exposure to credit risk at any point in time is represented by the fair value of the derivative contracts reported as assets. The fair value of a derivative represents the amount at which the derivative could be exchanged in an orderly transaction between market participants and is further described in Note 2 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K and Note 4. | ||||||||||||||||||||
The tables below present a summary by counterparty credit rating and remaining contract maturity of the fair value of OTC derivatives in a gain position at September 30, 2013 and December 31, 2012, respectively. Fair value is presented in the final column, net of collateral received (principally cash and U.S. government and agency securities): | ||||||||||||||||||||
OTC Derivative Products—Trading Assets at September 30, 2013(1) | ||||||||||||||||||||
Cross-Maturity and Cash Collateral Netting(3) | Net Exposure Post-Cash Collateral | Net Exposure Post-Collateral | ||||||||||||||||||
Years to Maturity | ||||||||||||||||||||
Credit Rating(2) | Less than 1 | 3-Jan | 5-Mar | Over 5 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
AAA | $ | 337 | $ | 605 | $ | 1,043 | $ | 4,305 | $ | -4,010 | $ | 2,280 | $ | 1,926 | ||||||
AA | 2,283 | 2,015 | 2,655 | 10,281 | -11,877 | 5,357 | 3,533 | |||||||||||||
A | 6,865 | 9,504 | 10,419 | 21,414 | -40,171 | 8,031 | 6,367 | |||||||||||||
BBB | 2,886 | 3,498 | 3,660 | 15,220 | -17,861 | 7,403 | 5,625 | |||||||||||||
Non-investment grade | 2,697 | 3,007 | 1,672 | 3,156 | -5,211 | 5,321 | 2,542 | |||||||||||||
Total | $ | 15,068 | $ | 18,629 | $ | 19,449 | $ | 54,376 | $ | -79,130 | $ | 28,392 | $ | 19,993 | ||||||
(1) Fair values shown represent the Company's net exposure to counterparties related to the Company's OTC derivative products. Amounts include centrally cleared OTC derivatives. The table does not include exchange-traded derivatives and the effect of any related hedges utilized by the Company. | ||||||||||||||||||||
(2) Obligor credit ratings are determined by the Company's Credit Risk Management Department. | ||||||||||||||||||||
(3) Amounts represent the netting of receivable balances with payable balances for the same counterparty across maturity categories. Receivable and payable balances with the same counterparty in the same maturity category are netted within such maturity category, where appropriate. Cash collateral received is netted on a counterparty basis, provided legal right of offset exists. | ||||||||||||||||||||
OTC Derivative Products—Trading Assets at December 31, 2012(1) | ||||||||||||||||||||
Years to Maturity | Cross-Maturity and Cash Collateral Netting(3) | Net Exposure Post-Cash Collateral | Net Exposure Post-Collateral | |||||||||||||||||
Credit Rating(2) | Less than 1 | 3-Jan | 5-Mar | Over 5 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
AAA | $ | 353 | $ | 551 | $ | 1,299 | $ | 6,121 | $ | -4,851 | $ | 3,473 | $ | 3,088 | ||||||
AA | 2,125 | 3,635 | 2,958 | 10,270 | -12,761 | 6,227 | 4,428 | |||||||||||||
A | 6,643 | 9,596 | 14,228 | 29,729 | -50,722 | 9,474 | 7,638 | |||||||||||||
BBB | 2,673 | 3,970 | 3,704 | 18,586 | -21,713 | 7,220 | 5,754 | |||||||||||||
Non-investment grade | 2,091 | 2,855 | 2,142 | 4,538 | -6,696 | 4,930 | 2,725 | |||||||||||||
Total | $ | 13,885 | $ | 20,607 | $ | 24,331 | $ | 69,244 | $ | -96,743 | $ | 31,324 | $ | 23,633 | ||||||
_____________ | ||||||||||||||||||||
(1) Fair values shown represent the Company's net exposure to counterparties related to the Company's OTC derivative products. Amounts include centrally cleared OTC derivatives. The table does not include exchange-traded derivatives and the effect of any related hedges utilized by the Company. | ||||||||||||||||||||
(2) Obligor credit ratings are determined by the Company's Credit Risk Management Department. | ||||||||||||||||||||
(3) Amounts represent the netting of receivable balances with payable balances for the same counterparty across maturity categories. Receivable and payable balances with the same counterparty in the same maturity category are netted within such maturity category, where appropriate. Cash collateral received is netted on a counterparty basis, provided legal right of offset exists. | ||||||||||||||||||||
Hedge Accounting. | ||||||||||||||||||||
The Company applies hedge accounting using various derivative financial instruments to hedge interest rate and foreign exchange risk arising from assets and liabilities not held at fair value as part of asset and liability management and foreign currency exposure management. | ||||||||||||||||||||
The Company's hedges are designated and qualify for accounting purposes as one of the following types of hedges: hedges of exposure to changes in fair value of assets and liabilities being hedged (fair value hedges) and hedges of net investments in foreign operations whose functional currency is different from the reporting currency of the parent company (net investment hedges). | ||||||||||||||||||||
For all hedges where hedge accounting is being applied, effectiveness testing and other procedures to ensure the ongoing validity of the hedges are performed at least monthly. | ||||||||||||||||||||
Fair Value Hedges—Interest Rate Risk. The Company's designated fair value hedges consisted primarily of interest rate swaps designated as fair value hedges of changes in the benchmark interest rate of fixed rate senior long-term borrowings. The Company uses regression analysis to perform an ongoing prospective and retrospective assessment of the effectiveness of these hedging relationships (i.e., the Company applies the “long-haul” method of hedge accounting). A hedging relationship is deemed effective if the fair values of the hedging instrument (derivative) and the hedged item (debt liability) change inversely within a range of 80% to 125%. The Company considers the impact of valuation adjustments related to the Company's own credit spreads and counterparty credit spreads to determine whether they would cause the hedging relationship to be ineffective. | ||||||||||||||||||||
For qualifying fair value hedges of benchmark interest rates, the changes in the fair value of the derivative and the changes in the fair value of the hedged liability provide offset of one another and, together with any resulting ineffectiveness, are recorded in Interest expense. When a derivative is de-designated as a hedge, any basis adjustment remaining on the hedged liability is amortized to Interest expense over the remaining life of the liability using the effective interest method. | ||||||||||||||||||||
Net Investment Hedges. The Company may utilize forward foreign exchange contracts to manage the currency exposure relating to its net investments in non-U.S. dollar functional currency operations. No hedge ineffectiveness is recognized in earnings since the notional amounts of the hedging instruments equal the portion of the investments being hedged and the currencies being exchanged are the functional currencies of the parent and investee. The gain or loss from revaluing hedges of net investments in foreign operations at the spot rate is deferred and reported within Accumulated other comprehensive income (loss) in Total Equity, net of tax effects. The forward points on the hedging instruments are recorded in Interest income. | ||||||||||||||||||||
In the nine months ended September 30, 2012, the Company recognized an out of period pre-tax gain of approximately $109 million in the Institutional Securities business segment's Other sales and trading net revenues, related to the reversal of amounts recorded in cumulative other comprehensive income due to the incorrect application of hedge accounting on certain derivative contracts previously designated as net investment hedges of certain non-U.S. dollar denominated subsidiaries. The Company has evaluated the effects of the incorrect application of hedge accounting, both qualitatively and quantitatively, and concluded that it did not have a material impact on any prior annual or quarterly consolidated financial statements. Subsequent to the identification of the incorrect application of net investment hedge accounting, the Company has appropriately redesignated the forward foreign exchange contracts and reapplied hedge accounting. | ||||||||||||||||||||
Fair Value and Notional of Derivative Instruments. The following tables summarize the fair value of derivative instruments designated as accounting hedges and the fair value of derivative instruments not designated as accounting hedges by type of derivative contract and the platform on which these instruments are traded or cleared on a gross basis. Fair values of derivative contracts in an asset position are included in Trading assets and fair values of derivative contracts in a liability position are reflected in Trading liabilities in the condensed consolidated statements of financial condition (see Note 4): | ||||||||||||||||||||
Derivative Assets | ||||||||||||||||||||
At September 30, 2013 | ||||||||||||||||||||
Fair Value | Notional | |||||||||||||||||||
Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | |||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivatives designated as accounting | ||||||||||||||||||||
hedges: | ||||||||||||||||||||
Interest rate contracts | $ | 5,586 | $ | 324 | $ | — | $ | 5,910 | $ | 58,287 | $ | 11,440 | $ | — | $ | 69,727 | ||||
Foreign exchange contracts | 180 | — | — | 180 | 5,853 | 137 | — | 5,990 | ||||||||||||
Total derivatives designated as | ||||||||||||||||||||
accounting hedges | 5,766 | 324 | — | 6,090 | 64,140 | 11,577 | — | 75,717 | ||||||||||||
Derivatives not designated as accounting | ||||||||||||||||||||
hedges(1): | ||||||||||||||||||||
Interest rate contracts | 304,345 | 280,067 | 376 | 584,788 | 6,551,567 | 12,716,148 | 1,255,543 | 20,523,258 | ||||||||||||
Credit contracts | 45,312 | 4,359 | — | 49,671 | 1,397,432 | 254,921 | — | 1,652,353 | ||||||||||||
Foreign exchange contracts | 55,800 | 138 | 24 | 55,962 | 1,844,721 | 5,719 | 8,521 | 1,858,961 | ||||||||||||
Equity contracts | 26,375 | — | 29,733 | 56,108 | 331,139 | — | 501,628 | 832,767 | ||||||||||||
Commodity contracts | 12,993 | — | 4,354 | 17,347 | 166,689 | — | 179,290 | 345,979 | ||||||||||||
Other | 36 | — | — | 36 | 2,432 | — | — | 2,432 | ||||||||||||
Total derivatives not designated | ||||||||||||||||||||
as accounting hedges | 444,861 | 284,564 | 34,487 | 763,912 | 10,293,980 | 12,976,788 | 1,944,982 | 25,215,750 | ||||||||||||
Total derivatives | $ | 450,627 | $ | 284,888 | $ | 34,487 | $ | 770,002 | $ | 10,358,120 | $ | 12,988,365 | $ | 1,944,982 | $ | 25,291,467 | ||||
Cash collateral netting | -53,748 | -2,869 | — | -56,617 | — | — | — | — | ||||||||||||
Counterparty netting | -369,149 | -281,278 | -27,520 | -677,947 | — | — | — | — | ||||||||||||
Total derivative assets | $ | 27,730 | $ | 741 | $ | 6,967 | $ | 35,438 | $ | 10,358,120 | $ | 12,988,365 | $ | 1,944,982 | $ | 25,291,467 | ||||
Derivative Liabilities | ||||||||||||||||||||
At September 30, 2013 | ||||||||||||||||||||
Fair Value | Notional | |||||||||||||||||||
Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | |||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivatives designated as accounting | ||||||||||||||||||||
hedges: | ||||||||||||||||||||
Interest rate contracts | $ | 514 | $ | 405 | $ | — | $ | 919 | $ | 2,647 | $ | 12,454 | $ | — | $ | 15,101 | ||||
Foreign exchange contracts | 289 | 1 | — | 290 | 9,563 | 226 | — | 9,789 | ||||||||||||
Total derivatives designated as | . | |||||||||||||||||||
accounting hedges | 803 | 406 | — | 1,209 | 12,210 | 12,680 | — | 24,890 | ||||||||||||
Derivatives not designated as accounting | ||||||||||||||||||||
hedges(1): | ||||||||||||||||||||
Interest rate contracts | 284,561 | 280,055 | 358 | 564,974 | 6,417,090 | 12,594,699 | 1,532,970 | 20,544,759 | ||||||||||||
Credit contracts | 43,093 | 4,483 | — | 47,576 | 1,257,814 | 244,523 | — | 1,502,337 | ||||||||||||
Foreign exchange contracts | 56,463 | 79 | 9 | 56,551 | 1,914,342 | 4,988 | 3,297 | 1,922,627 | ||||||||||||
Equity contracts | 30,241 | — | 32,992 | 63,233 | 337,877 | — | 505,050 | 842,927 | ||||||||||||
Commodity contracts | 12,409 | — | 4,741 | 17,150 | 154,196 | — | 159,652 | 313,848 | ||||||||||||
Other | 204 | — | — | 204 | 6,455 | — | — | 6,455 | ||||||||||||
Total derivatives not designated | ||||||||||||||||||||
as accounting hedges | 426,971 | 284,617 | 38,100 | 749,688 | 10,087,774 | 12,844,210 | 2,200,969 | 25,132,953 | ||||||||||||
Total derivatives | $ | 427,774 | $ | 285,023 | $ | 38,100 | $ | 750,897 | $ | 10,099,984 | $ | 12,856,890 | $ | 2,200,969 | $ | 25,157,843 | ||||
Cash collateral netting | -31,233 | -3,549 | — | -34,782 | — | — | — | — | ||||||||||||
Counterparty netting | -369,149 | -281,278 | -27,520 | -677,947 | — | — | — | — | ||||||||||||
Total derivative liabilities | $ | 27,392 | $ | 196 | $ | 10,580 | $ | 38,168 | $ | 10,099,984 | $ | 12,856,890 | $ | 2,200,969 | $ | 25,157,843 | ||||
_____________ | ||||||||||||||||||||
(1) Notional amounts include gross notionals related to open long and short futures contracts of $411 billion and $915 billion, respectively. The unsettled fair value on these futures contracts (excluded from the table above) of $951 million and $51 million is included in Customer and other receivables and Customer and other payables, respectively, on the condensed consolidated statements of financial condition. | ||||||||||||||||||||
(2) Includes OTC derivatives that are centrally cleared in accordance with certain regulatory requirements. | ||||||||||||||||||||
Derivative Assets | ||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||
Fair Value | Notional | |||||||||||||||||||
Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | |||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivatives designated as accounting | ||||||||||||||||||||
hedges: | ||||||||||||||||||||
Interest rate contracts | $ | 8,046 | $ | 301 | $ | — | $ | 8,347 | $ | 66,916 | $ | 8,199 | $ | — | $ | 75,115 | ||||
Foreign exchange contracts | 367 | — | — | 367 | 10,291 | — | — | 10,291 | ||||||||||||
Total derivatives designated as | ||||||||||||||||||||
accounting hedges | 8,413 | 301 | — | 8,714 | 77,207 | 8,199 | — | 85,406 | ||||||||||||
Derivatives not designated as accounting | ||||||||||||||||||||
hedges(1): | ||||||||||||||||||||
Interest rate contracts | 443,523 | 371,789 | 142 | 815,454 | 8,029,510 | 10,096,252 | 776,130 | 18,901,892 | ||||||||||||
Credit contracts | 65,168 | 3,099 | — | 68,267 | 1,734,907 | 197,879 | — | 1,932,786 | ||||||||||||
Foreign exchange contracts | 52,349 | 44 | 34 | 52,427 | 1,831,385 | 3,834 | 5,967 | 1,841,186 | ||||||||||||
Equity contracts | 19,916 | — | 18,684 | 38,600 | 258,484 | — | 329,216 | 587,700 | ||||||||||||
Commodity contracts | 15,201 | — | 5,445 | 20,646 | 164,842 | — | 176,714 | 341,556 | ||||||||||||
Other | 143 | — | — | 143 | 4,908 | — | — | 4,908 | ||||||||||||
Total derivatives not designated | ||||||||||||||||||||
as accounting hedges | 596,300 | 374,932 | 24,305 | 995,537 | 12,024,036 | 10,297,965 | 1,288,027 | 23,610,028 | ||||||||||||
Total derivatives | $ | 604,713 | $ | 375,233 | $ | 24,305 | $ | 1,004,251 | $ | 12,101,243 | $ | 10,306,164 | $ | 1,288,027 | $ | 23,695,434 | ||||
Cash collateral netting | -68,024 | -1,224 | — | -69,248 | — | — | — | — | ||||||||||||
Counterparty netting | -505,820 | -373,322 | -19,664 | -898,806 | — | — | — | — | ||||||||||||
Total derivative assets | $ | 30,869 | $ | 687 | $ | 4,641 | $ | 36,197 | $ | 12,101,243 | $ | 10,306,164 | $ | 1,288,027 | $ | 23,695,434 | ||||
Derivative Liabilities | ||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||
Fair Value | Notional | |||||||||||||||||||
Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | |||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivatives designated as accounting | ||||||||||||||||||||
hedges: | ||||||||||||||||||||
Interest rate contracts | $ | 167 | $ | 1 | $ | — | $ | 168 | $ | 2,000 | $ | 660 | $ | — | $ | 2,660 | ||||
Foreign exchange contracts | 319 | — | — | 319 | 17,156 | — | — | 17,156 | ||||||||||||
Total derivatives designated as | ||||||||||||||||||||
accounting hedges | 486 | 1 | — | 487 | 19,156 | 660 | — | 19,816 | ||||||||||||
Derivatives not designated as accounting | ||||||||||||||||||||
hedges(1): | ||||||||||||||||||||
Interest rate contracts | 422,864 | 370,856 | 216 | 793,936 | 7,726,241 | 9,945,979 | 1,994,947 | 19,667,167 | ||||||||||||
Credit contracts | 60,420 | 4,074 | — | 64,494 | 1,645,464 | 222,343 | — | 1,867,807 | ||||||||||||
Foreign exchange contracts | 56,062 | 29 | 3 | 56,094 | 1,878,597 | 3,473 | 4,003 | 1,886,073 | ||||||||||||
Equity contracts | 22,239 | — | 19,631 | 41,870 | 257,340 | — | 329,858 | 587,198 | ||||||||||||
Commodity contracts | 15,886 | — | 5,945 | 21,831 | 169,189 | — | 155,912 | 325,101 | ||||||||||||
Other | 61 | — | — | 61 | 5,161 | — | — | 5,161 | ||||||||||||
Total derivatives not designated | ||||||||||||||||||||
as accounting hedges | 577,532 | 374,959 | 25,795 | 978,286 | 11,681,992 | 10,171,795 | 2,484,720 | 24,338,507 | ||||||||||||
Total derivatives | $ | 578,018 | $ | 374,960 | $ | 25,795 | $ | 978,773 | $ | 11,701,148 | $ | 10,172,455 | $ | 2,484,720 | $ | 24,358,323 | ||||
Cash collateral netting | -41,465 | -1,544 | — | -43,009 | — | — | — | — | ||||||||||||
Counterparty netting | -505,820 | -373,322 | -19,664 | -898,806 | — | — | — | — | ||||||||||||
Total derivative liabilities | $ | 30,733 | $ | 94 | $ | 6,131 | $ | 36,958 | $ | 11,701,148 | $ | 10,172,455 | $ | 2,484,720 | $ | 24,358,323 | ||||
_____________ | ||||||||||||||||||||
(1) Notional amounts include gross notionals related to open long and short futures contracts of $368 billion and $1,476 billion, respectively. The unsettled fair value on these futures contracts (excluded from the table above) of $1,073 million and $24 million is included in Customer and other receivables and Customer and other payables, respectively, on the condensed consolidated statements of financial condition. | ||||||||||||||||||||
(2) Includes OTC derivatives that are centrally cleared in accordance with certain regulatory requirements. | ||||||||||||||||||||
The following tables summarize the gains or losses reported on derivative instruments designated and qualifying as accounting hedges for the quarters and nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||
Derivatives Designated as Fair Value Hedges. | ||||||||||||||||||||
The following table presents gains (losses) reported on derivative instruments and the related hedge item as well as the hedge ineffectiveness included in Interest expense in the condensed consolidated statements of income from interest rate contracts: | ||||||||||||||||||||
Gains (Losses) Recognized | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
Product Type | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivatives | $ | -302 | $ | 72 | $ | -3,421 | $ | 504 | ||||||||||||
Borrowings | 583 | 17 | 4,374 | -37 | ||||||||||||||||
Total | $ | 281 | $ | 89 | $ | 953 | $ | 467 | ||||||||||||
Derivatives Designated as Net Investment Hedges. | ||||||||||||||||||||
Gains Recognized in OCI (effective portion) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
Product Type | 2013 | 2012 | 2013 | 2012(1) | ||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Foreign exchange contracts(2) | $ | -193 | $ | -226 | $ | 346 | $ | -76 | ||||||||||||
Total | $ | -193 | $ | -226 | $ | 346 | $ | -76 | ||||||||||||
____________ | ||||||||||||||||||||
(1) A gain of $77 million, net of tax, related to net investment hedges was reclassified from other comprehensive income into income during the nine months ended September 30, 2012. The amount primarily related the reversal of amounts recorded in cumulative other comprehensive income due to the incorrect application of hedge accounting on certain derivative contracts (see above for further information). | ||||||||||||||||||||
(2) Losses of $34 million and $103 million were recognized in income related to amounts excluded from hedge effectiveness testing during the quarter and nine months ended September 30, 2013, respectively. Losses of $65 million and $193 million were recognized in income related to amounts excluded from hedge effectiveness testing during the quarter and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||
The table below summarizes gains (losses) on derivative instruments not designated as accounting hedges for the quarters and nine months ended September 30, 2013 and 2012, respectively: | ||||||||||||||||||||
Gains (Losses) Recognized in Income(1)(2) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
Product Type | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Interest rate contracts | $ | -435 | $ | 227 | $ | -676 | $ | 977 | ||||||||||||
Credit contracts | -145 | -525 | 100 | 96 | ||||||||||||||||
Foreign exchange contracts | 594 | -129 | 2,775 | 310 | ||||||||||||||||
Equity contracts | -1,580 | -800 | -4,840 | -1,229 | ||||||||||||||||
Commodity contracts | 104 | -136 | 1,407 | 166 | ||||||||||||||||
Other contracts | -25 | -14 | -69 | 10 | ||||||||||||||||
Total derivative instruments | $ | -1,487 | $ | -1,377 | $ | -1,303 | $ | 330 | ||||||||||||
____________ | ||||||||||||||||||||
(1) Gains (losses) on derivative contracts not designated as hedges are primarily included in Trading in the condensed consolidated statements of income. | ||||||||||||||||||||
(2) Gains (losses) associated with certain derivative contracts that have physically settled are excluded from the table above. Gains (losses) on these contracts are reflected with the associated cash instruments, which are also included in Trading in the condensed consolidated statements of income. | ||||||||||||||||||||
The Company also has certain embedded derivatives that have been bifurcated from the related structured borrowings. Such derivatives are classified in Long-term borrowings and had a net fair value of $71 million and $53 million at September 30, 2013 and December 31, 2012, respectively and a notional value of $2,146 million and $2,178 million at September 30, 2013 and December 31, 2012, respectively. The Company recognized gains of $13 million related to changes in the fair value of its bifurcated embedded derivatives in both the quarter and nine months ended September 30, 2013. The Company recognized gains of $12 million and $6 million related to changes in the fair value of its bifurcated embedded derivatives in the quarter and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||
At September 30, 2013 and December 31, 2012, the amount of payables associated with cash collateral received that was netted against derivative assets was $56.6 billion and $69.2 billion, respectively, and the amount of receivables in respect of cash collateral paid that was netted against derivative liabilities was $34.8 billion and $43.0 billion, respectively. Cash collateral receivables and payables of $204 million and $5 million, respectively, at September 30, 2013 and $158 million and $34 million, respectively, at December 31, 2012, were not offset against certain contracts that did not meet the definition of a derivative. | ||||||||||||||||||||
Credit-Risk-Related Contingencies. | ||||||||||||||||||||
In connection with certain OTC trading agreements, the Company may be required to provide additional collateral or immediately settle any outstanding liability balances with certain counterparties in the event of a credit ratings downgrade. At September 30, 2013, the aggregate fair value of OTC derivative contracts that contain credit-risk-related contingent features that are in a net liability position totaled $22,428 million, for which the Company has posted collateral of $19,474 million, in the normal course of business. The long-term credit ratings on the Company by Moody's Investor Services, Inc. (“Moody's”) and Standard & Poor's Ratings Services (“S&P”) are currently at different levels (commonly referred to as “split ratings”). At September 30, 2013, the future potential collateral amounts, termination payments or other contractual amounts that could be called by counterparties in the event of a downgrade of the Company's long-term credit rating under various scenarios are: $284 million (Baa1 Moody's/BBB+ S&P) and $2,994 million (Baa2 Moody's/BBB S&P). Of these amounts, $2,871 million at September 30, 2013 related to bilateral arrangements between the Company and other parties where upon the downgrade of one party, the downgraded party must deliver collateral to the other party. These bilateral downgrade arrangements are a risk management tool used extensively by the Company as credit exposures are reduced if counterparties are downgraded. | ||||||||||||||||||||
Credit Derivatives and Other Credit Contracts. | ||||||||||||||||||||
The Company enters into credit derivatives, principally through credit default swaps, under which it receives or provides protection against the risk of default on a set of debt obligations issued by a specified reference entity or entities. A majority of the Company's counterparties are banks, broker-dealers, insurance and other financial institutions, and monoline insurers. | ||||||||||||||||||||
The tables below summarize the notional and fair value of protection sold and protection purchased through credit default swaps at September 30, 2013 and December 31, 2012: | ||||||||||||||||||||
At September 30, 2013 | ||||||||||||||||||||
Maximum Potential Payout/Notional | ||||||||||||||||||||
Protection Sold | Protection Purchased | |||||||||||||||||||
Notional | Fair Value (Asset)/Liability | Notional | Fair Value (Asset)/Liability | |||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Single name credit default swaps | $ | 889,337 | $ | -3,488 | $ | 847,529 | $ | 3,121 | ||||||||||||
Index and basket credit default swaps | 516,283 | 205 | 424,669 | -302 | ||||||||||||||||
Tranched index and basket credit default swaps | 172,166 | -1,626 | 304,706 | -5 | ||||||||||||||||
Total | $ | 1,577,786 | $ | -4,909 | $ | 1,576,904 | $ | 2,814 | ||||||||||||
At December 31, 2012 | ||||||||||||||||||||
Maximum Potential Payout/Notional | ||||||||||||||||||||
Protection Sold | Protection Purchased | |||||||||||||||||||
Notional | Fair Value (Asset)/Liability | Notional | Fair Value (Asset)/Liability | |||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Single name credit default swaps | $ | 1,069,474 | $ | 2,889 | $ | 1,029,543 | $ | -2,456 | ||||||||||||
Index and basket credit default swaps | 551,630 | 5,664 | 454,800 | -5,124 | ||||||||||||||||
Tranched index and basket credit default swaps | 272,088 | 2,330 | 423,058 | -7,076 | ||||||||||||||||
Total | $ | 1,893,192 | $ | 10,883 | $ | 1,907,401 | $ | -14,656 | ||||||||||||
The table below summarizes the credit ratings and maturities of protection sold through credit default swaps and other credit contracts at September 30, 2013: | ||||||||||||||||||||
Protection Sold | ||||||||||||||||||||
Maximum Potential Payout/Notional | Fair Value | |||||||||||||||||||
Years to Maturity | (Asset)/ | |||||||||||||||||||
Credit Ratings of the Reference Obligation | Less than 1 | 3-Jan | 5-Mar | Over 5 | Total | Liability(1)(2) | ||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Single name credit default swaps: | ||||||||||||||||||||
AAA | $ | 1,641 | $ | 7,641 | $ | 13,025 | $ | 2,183 | $ | 24,490 | $ | -156 | ||||||||
AA | 10,016 | 21,583 | 27,395 | 5,350 | 64,344 | -707 | ||||||||||||||
A | 55,905 | 57,731 | 56,520 | 6,259 | 176,415 | -2,522 | ||||||||||||||
BBB | 119,444 | 123,063 | 129,910 | 23,905 | 396,322 | -1,904 | ||||||||||||||
Non-investment grade | 69,370 | 77,969 | 71,782 | 8,645 | 227,766 | 1,801 | ||||||||||||||
Total | 256,376 | 287,987 | 298,632 | 46,342 | 889,337 | -3,488 | ||||||||||||||
Index and basket credit default swaps(3): | ||||||||||||||||||||
AAA | 16,504 | 34,984 | 39,470 | 2,362 | 93,320 | -1,319 | ||||||||||||||
AA | 1,190 | 8,460 | 9,657 | 5,877 | 25,184 | -335 | ||||||||||||||
A | 1,452 | 3,609 | 8,614 | 23 | 13,698 | -43 | ||||||||||||||
BBB | 21,162 | 64,741 | 112,188 | 8,079 | 206,170 | -1,787 | ||||||||||||||
Non-investment grade | 58,014 | 93,750 | 162,213 | 36,100 | 350,077 | 2,063 | ||||||||||||||
Total | 98,322 | 205,544 | 332,142 | 52,441 | 688,449 | -1,421 | ||||||||||||||
Total credit default swaps sold | $ | 354,698 | $ | 493,531 | $ | 630,774 | $ | 98,783 | $ | 1,577,786 | $ | -4,909 | ||||||||
Other credit contracts(4)(5) | $ | 376 | $ | 10 | $ | 137 | $ | 1,165 | $ | 1,688 | $ | -171 | ||||||||
Total credit derivatives and | ||||||||||||||||||||
other credit contracts | $ | 355,074 | $ | 493,541 | $ | 630,911 | $ | 99,948 | $ | 1,579,474 | $ | -5,080 | ||||||||
_____________ | ||||||||||||||||||||
(1) Fair value amounts are shown on a gross basis prior to cash collateral or counterparty netting. | ||||||||||||||||||||
(2) Fair value amounts of certain credit default swaps where the Company sold protection have an asset carrying value because credit spreads of the underlying reference entity or entities tightened during the terms of the contracts. | ||||||||||||||||||||
(3) Credit ratings are calculated internally. | ||||||||||||||||||||
(4) Other credit contracts include CLNs, CDOs and credit default swaps that are considered hybrid instruments. | ||||||||||||||||||||
(5) Fair value amount shown represents the fair value of the hybrid instruments. | ||||||||||||||||||||
The table below summarizes the credit ratings and maturities of protection sold through credit default swaps and other credit contracts at December 31, 2012: | ||||||||||||||||||||
Protection Sold | ||||||||||||||||||||
Maximum Potential Payout/Notional | Fair Value | |||||||||||||||||||
Years to Maturity | (Asset)/ | |||||||||||||||||||
Credit Ratings of the Reference Obligation | Less than 1 | 3-Jan | 5-Mar | Over 5 | Total | Liability(1)(2) | ||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Single name credit default swaps: | ||||||||||||||||||||
AAA | $ | 2,368 | $ | 6,592 | $ | 19,848 | $ | 5,767 | $ | 34,575 | $ | -204 | ||||||||
AA | 10,984 | 16,804 | 34,280 | 7,193 | 69,261 | -325 | ||||||||||||||
A | 66,635 | 72,796 | 67,285 | 10,760 | 217,476 | -2,740 | ||||||||||||||
BBB | 124,662 | 145,462 | 142,714 | 34,396 | 447,234 | -492 | ||||||||||||||
Non-investment grade | 91,743 | 98,515 | 92,143 | 18,527 | 300,928 | 6,650 | ||||||||||||||
Total | 296,392 | 340,169 | 356,270 | 76,643 | 1,069,474 | 2,889 | ||||||||||||||
Index and basket credit default swaps(3): | ||||||||||||||||||||
AAA | 18,652 | 36,005 | 45,789 | 3,240 | 103,686 | -1,377 | ||||||||||||||
AA | 1,255 | 9,479 | 12,026 | 8,343 | 31,103 | -55 | ||||||||||||||
A | 2,684 | 5,423 | 5,440 | 125 | 13,672 | -155 | ||||||||||||||
BBB | 27,720 | 105,870 | 143,562 | 29,101 | 306,253 | -862 | ||||||||||||||
Non-investment grade | 97,389 | 86,703 | 153,858 | 31,054 | 369,004 | 10,443 | ||||||||||||||
Total | 147,700 | 243,480 | 360,675 | 71,863 | 823,718 | 7,994 | ||||||||||||||
Total credit default swaps sold | $ | 444,092 | $ | 583,649 | $ | 716,945 | $ | 148,506 | $ | 1,893,192 | $ | 10,883 | ||||||||
Other credit contracts(4)(5) | $ | 796 | $ | 125 | $ | 155 | $ | 1,323 | $ | 2,399 | $ | -745 | ||||||||
Total credit derivatives and other | ||||||||||||||||||||
credit contracts | $ | 444,888 | $ | 583,774 | $ | 717,100 | $ | 149,829 | $ | 1,895,591 | $ | 10,138 | ||||||||
_____________ | ||||||||||||||||||||
(1) Fair value amounts are shown on a gross basis prior to cash collateral or counterparty netting. | ||||||||||||||||||||
(2) Fair value amounts of certain credit default swaps where the Company sold protection have an asset carrying value because credit spreads of the underlying reference entity or entities tightened during the terms of the contracts. | ||||||||||||||||||||
(3) Credit ratings are calculated internally. | ||||||||||||||||||||
(4) Other credit contracts include CLNs, CDOs and credit default swaps that are considered hybrid instruments. | ||||||||||||||||||||
(5) Fair value amount shown represents the fair value of the hybrid instruments. | ||||||||||||||||||||
Single Name Credit Default Swaps. A credit default swap protects the buyer against the loss of principal on a bond or loan in case of a default by the issuer. The protection buyer pays a periodic premium (generally quarterly) over the life of the contract and is protected for the period. The Company in turn will have to perform under a credit default swap if a credit event as defined under the contract occurs. Typical credit events include bankruptcy, dissolution or insolvency of the referenced entity, failure to pay and restructuring of the obligations of the referenced entity. In order to provide an indication of the current payment status or performance risk of the credit default swaps, the external credit ratings of the underlying reference entity of the credit default swaps are disclosed. | ||||||||||||||||||||
Index and Basket Credit Default Swaps. Index and basket credit default swaps are credit default swaps that reference multiple names through underlying baskets or portfolios of single name credit default swaps. Generally, in the event of a default on one of the underlying names, the Company will have to pay a pro rata portion of the total notional amount of the credit default index or basket contract. In order to provide an indication of the current payment status or performance risk of these credit default swaps, the weighted average external credit ratings of the underlying reference entities comprising the basket or index were calculated and disclosed. | ||||||||||||||||||||
The Company also enters into index and basket credit default swaps where the credit protection provided is based upon the application of tranching techniques. In tranched transactions, the credit risk of an index or basket is separated into various portions of the capital structure, with different levels of subordination. The most junior tranches cover initial defaults, and once losses exceed the notional of the tranche, they are passed on to the next most senior tranche in the capital structure. | ||||||||||||||||||||
When external credit ratings are not available, credit ratings were determined based upon an internal methodology. | ||||||||||||||||||||
Credit Protection Sold through CLNs and CDOs. The Company has invested in CLNs and CDOs, which are hybrid instruments containing embedded derivatives, in which credit protection has been sold to the issuer of the note. If there is a credit event of a reference entity underlying the instrument, the principal balance of the note may not be repaid in full to the Company. | ||||||||||||||||||||
Purchased Credit Protection with Identical Underlying Reference Obligations. For single name credit default swaps and non-tranched index and basket credit default swaps, the Company has purchased protection with a notional amount of approximately $1.2 trillion and $1.5 trillion at September 30, 2013 and December 31, 2012, respectively, compared with a notional amount of approximately $1.3 trillion and $1.6 trillion at September 30, 2013 and December 31, 2012, of credit protection sold with identical underlying reference obligations. In order to identify purchased protection with the same underlying reference obligations, the notional amount for individual reference obligations within non-tranched indices and baskets was determined on a pro rata basis and matched off against single name and non-tranched index and basket credit default swaps where credit protection was sold with identical underlying reference obligations. | ||||||||||||||||||||
The purchase of credit protection does not represent the sole manner in which the Company risk manages its exposure to credit derivatives. The Company manages its exposure to these derivative contracts through a variety of risk mitigation strategies, which include managing the credit and correlation risk across single name, non-tranched indices and baskets, tranched indices and baskets, and cash positions. Aggregate market risk limits have been established for credit derivatives, and market risk measures are routinely monitored against these limits. The Company may also recover amounts on the underlying reference obligation delivered to the Company under credit default swaps where credit protection was sold. |
Commitments_Guarantees_and_Con
Commitments, Guarantees and Contingencies | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Commitments, Guarantees and Contingencies [Abstract] | ' | |||||||||||||||
Commitments, Guarantees and Contingencies | ' | |||||||||||||||
12. Commitments, Guarantees and Contingencies. | ||||||||||||||||
Commitments. | ||||||||||||||||
The Company's commitments associated with outstanding letters of credit and other financial guarantees obtained to satisfy collateral requirements, investment activities, corporate lending and financing arrangements, mortgage lending and margin lending at September 30, 2013 are summarized below by period of expiration. Since commitments associated with these instruments may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements: | ||||||||||||||||
Years to Maturity | ||||||||||||||||
Less | Total at | |||||||||||||||
than 1 | 3-Jan | 5-Mar | Over 5 | 30-Sep-13 | ||||||||||||
(dollars in millions) | ||||||||||||||||
Letters of credit and other financial guarantees | ||||||||||||||||
obtained to satisfy collateral requirements | $ | 682 | $ | 7 | $ | — | $ | 1 | $ | 690 | ||||||
Investment activities | 690 | 112 | 36 | 257 | 1,095 | |||||||||||
Primary lending commitments—investment grade(1) | 11,384 | 13,934 | 34,859 | 504 | 60,681 | |||||||||||
Primary lending commitments—non-investment grade(1) | 2,684 | 5,088 | 9,505 | 1,836 | 19,113 | |||||||||||
Secondary lending commitments(2) | 68 | 32 | 20 | 16 | 136 | |||||||||||
Commitments for secured lending transactions | 964 | — | — | 4 | 968 | |||||||||||
Forward starting reverse repurchase agreements and | ||||||||||||||||
securities borrowing agreements(3)(4) | 70,411 | — | — | — | 70,411 | |||||||||||
Commercial and residential mortgage-related commitments | 1,254 | 40 | 309 | 818 | 2,421 | |||||||||||
Underwriting commitments | 410 | — | — | — | 410 | |||||||||||
Other commitments | 2,284 | 376 | 206 | 79 | 2,945 | |||||||||||
Total | $ | 90,831 | $ | 19,589 | $ | 44,935 | $ | 3,515 | $ | 158,870 | ||||||
. | ||||||||||||||||
(1) This amount includes $44.9 billion of investment grade and $10.8 billion of non-investment grade unfunded commitments accounted for as held for investment and $5.9 billion of investment grade and $5.1 billion of non-investment grade unfunded commitments accounted for as held for sale at September 30, 2013. The remainder of these lending commitments is carried at fair value. | ||||||||||||||||
(2) These commitments are recorded at fair value within Trading assets and Trading liabilities in the condensed consolidated statements of financial condition (see Note 4). | ||||||||||||||||
(3) The Company enters into forward starting reverse repurchase and securities borrowing agreements (agreements that have a trade date at or prior to September 30, 2013 and settle subsequent to period-end) that are primarily secured by collateral from U.S. government agency securities and other sovereign government obligations. These agreements primarily settle within three business days and of the total amount at September 30, 2013, $66.5 billion settled within three business days. | ||||||||||||||||
(4) The Company also has a contingent obligation to provide financing to a clearinghouse through which it clears certain transactions. The financing is required only upon the default of a clearinghouse member. The financing takes the form of a reverse repurchase facility, with a maximum amount of approximately $1.9 billion. | ||||||||||||||||
For further description of these commitments, refer to Note 13 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K. | ||||||||||||||||
The Company sponsors several non-consolidated investment funds for third-party investors where the Company typically acts as general partner of, and investment advisor to, these funds and typically commits to invest a minority of the capital of such funds, with subscribing third-party investors contributing the majority. The Company's employees, including its senior officers, as well as the Company's directors, may participate on the same terms and conditions as other investors in certain of these funds that the Company forms primarily for client investment, except that the Company may waive or lower applicable fees and charges for its employees. The Company has contractual capital commitments, guarantees, lending facilities and counterparty arrangements with respect to these investment funds. | ||||||||||||||||
Guarantees. | ||||||||||||||||
The table below summarizes certain information regarding the Company's obligations under guarantee arrangements at September 30, 2013: | ||||||||||||||||
Maximum Potential Payout/Notional | Carrying Amount (Asset)/ Liability | Collateral/ Recourse | ||||||||||||||
Years to Maturity | ||||||||||||||||
Type of Guarantee | Less than 1 | 3-Jan | 5-Mar | Over 5 | Total | |||||||||||
(dollars in millions) | ||||||||||||||||
Credit derivative contracts(1) | $ | 354,698 | $ | 493,531 | $ | 630,774 | $ | 98,783 | $ | 1,577,786 | $ | -4,909 | $ | — | ||
Other credit contracts | 376 | 10 | 137 | 1,165 | 1,688 | -171 | — | |||||||||
Non-credit derivative contracts(1) | 1,423,753 | 873,318 | 304,554 | 507,865 | 3,109,490 | 61,134 | — | |||||||||
Standby letters of credit and other | ||||||||||||||||
financial guarantees issued(2)(3) | 1,258 | 687 | 1,309 | 5,137 | 8,391 | -210 | 7,409 | |||||||||
Market value guarantees | — | 64 | 148 | 504 | 716 | 8 | 111 | |||||||||
Liquidity facilities | 2,220 | 148 | — | — | 2,368 | -4 | 3,143 | |||||||||
Whole loan sales representations | ||||||||||||||||
and warranties | — | — | — | 23,803 | 23,803 | 69 | — | |||||||||
Securitization representations and | ||||||||||||||||
warranties | — | — | — | 67,130 | 67,130 | 90 | — | |||||||||
General partner guarantees | 83 | 45 | 58 | 241 | 427 | 75 | — | |||||||||
_____________ | ||||||||||||||||
(1) Carrying amounts of derivative contracts are shown on a gross basis prior to cash collateral or counterparty netting. For further information on derivative contracts, see Note 11. | ||||||||||||||||
(2) Approximately $2.1 billion of standby letters of credit are also reflected in the “Commitments” table above in primary and secondary lending commitments. Standby letters of credit are recorded at fair value within Trading assets or Trading liabilities in the condensed consolidated statements of financial condition. | ||||||||||||||||
(3) Amounts include guarantees issued by consolidated real estate funds sponsored by the Company of approximately $13 million. These guarantees relate to obligations of the fund's investee entities, including guarantees related to capital expenditures and principal and interest debt payments. Accrued losses under these guarantees of approximately $4 million are reflected as a reduction of the carrying value of the related fund investments, which are reflected in Trading assets on the condensed consolidated statement of financial condition. | ||||||||||||||||
For further description of these guarantees, refer to Note 13 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K. | ||||||||||||||||
The Company has obligations under certain guarantee arrangements, including contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying measure (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or non-occurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. Also included as guarantees are contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement, as well as indirect guarantees of the indebtedness of others. The Company's use of guarantees is described below by type of guarantee: | ||||||||||||||||
Other Guarantees and Indemnities. | ||||||||||||||||
In the normal course of business, the Company provides guarantees and indemnifications in a variety of commercial transactions. These provisions generally are standard contractual terms. Certain of these guarantees and indemnifications are described below. | ||||||||||||||||
• Trust Preferred Securities. The Company has established Morgan Stanley Capital Trusts for the limited purpose of issuing trust preferred securities to third parties and lending the proceeds to the Company in exchange for junior subordinated debentures. The Company has directly guaranteed the repayment of the trust preferred securities to the holders thereof to the extent that the Company has made payments to a Morgan Stanley Capital Trust on the junior subordinated debentures. In the event that the Company does not make payments to a Morgan Stanley Capital Trust, holders of such series of trust preferred securities would not be able to rely upon the guarantee for payment of those amounts. The Company has not recorded any liability in the condensed consolidated financial statements for these guarantees and believes that the occurrence of any events (i.e., non-performance on the part of the paying agent) that would trigger payments under these contracts is remote. See Note 11 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K for details on the Company's junior subordinated debentures. | ||||||||||||||||
• Indemnities. The Company provides standard indemnities to counterparties for certain contingent exposures and taxes, including U.S. and foreign withholding taxes, on interest and other payments made on derivatives, securities and stock lending transactions, certain annuity products and other financial arrangements. These indemnity payments could be required based on a change in the tax laws or change in interpretation of applicable tax rulings or a change in factual circumstances. Certain contracts contain provisions that enable the Company to terminate the agreement upon the occurrence of such events. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. | ||||||||||||||||
• Exchange/Clearinghouse Member Guarantees. The Company is a member of various U.S. and non-U.S. exchanges and clearinghouses that trade and clear securities and/or derivative contracts. Associated with its membership, the Company may be required to pay a proportionate share of the financial obligations of another member who may default on its obligations to the exchange or the clearinghouse. While the rules governing different exchange or clearinghouse memberships vary, in general the Company's guarantee obligations would arise only if the exchange or clearinghouse had previously exhausted its resources. The maximum potential payout under these membership agreements cannot be estimated. The Company has not recorded any contingent liability in the condensed consolidated financial statements for these agreements and believes that any potential requirement to make payments under these agreements is remote. | ||||||||||||||||
• Merger and Acquisition Guarantees. The Company may, from time to time, in its role as investment banking advisor be required to provide guarantees in connection with certain European merger and acquisition transactions. If required by the regulating authorities, the Company provides a guarantee that the acquirer in the merger and acquisition transaction has or will have sufficient funds to complete the transaction and would then be required to make the acquisition payments in the event the acquirer's funds are insufficient at the completion date of the transaction. These arrangements generally cover the time frame from the transaction offer date to its closing date and, therefore, are generally short term in nature. The maximum potential amount of future payments that the Company could be required to make cannot be estimated. The Company believes the likelihood of any payment by the Company under these arrangements is remote given the level of the Company's due diligence associated with its role as investment banking advisor. | ||||||||||||||||
In the ordinary course of business, the Company guarantees the debt and/or certain trading obligations (including obligations associated with derivatives, foreign exchange contracts and the settlement of physical commodities) of certain subsidiaries. These guarantees generally are entity or product specific and are required by investors or trading counterparties. The activities of the subsidiaries covered by these guarantees (including any related debt or trading obligations) are included in the Company's condensed consolidated financial statements. | ||||||||||||||||
Contingencies. | ||||||||||||||||
Legal. In the normal course of business, the Company has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with its activities as a global diversified financial services institution. Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the entities that would otherwise be the primary defendants in such cases are bankrupt or are in financial distress. These actions have included, but are not limited to, residential mortgage and credit crisis related matters. Over the last several years, the level of litigation and investigatory activity focused on residential mortgage and credit crisis related matters has increased materially in the financial services industry. As a result, the Company expects that it may become the subject of increased claims for damages and other relief regarding residential mortgages and related securities in the future and, while the Company has identified below any individual proceedings where the Company believes a material loss to be reasonably possible and reasonably estimable, there can be no assurance that material losses will not be incurred from claims that have not yet been notified to the Company or are not yet determined to be probable or possible and reasonably estimable losses. | ||||||||||||||||
The Company is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding the Company's business and involving, among other matters, accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. | ||||||||||||||||
The Company contests liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the condensed consolidated financial statements and the Company can reasonably estimate the amount of that loss, the Company accrues the estimated loss by a charge to income. The Company expects future litigation accruals in general to continue to be elevated and the changes in accruals from period to period may fluctuate significantly, given the current environment regarding financial crisis related government investigations and private litigation affecting global financial services firms, including the Company. | ||||||||||||||||
In many proceedings, however, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount of any loss. In addition, even where loss is possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss. | ||||||||||||||||
For certain legal proceedings, the Company cannot reasonably estimate such losses, particularly for proceedings that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, determination of issues related to class certification and the calculation of damages, and by addressing novel or unsettled legal questions relevant to the proceedings in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any proceeding. | ||||||||||||||||
For certain other legal proceedings, the Company can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but does not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on the Company's condensed consolidated financial statements as a whole, other than the matters referred to in the following paragraphs. | ||||||||||||||||
On March 15, 2010, the Federal Home Loan Bank of San Francisco filed two complaints against the Company and other defendants in the Superior Court of the State of California. These actions are styled Federal Home Loan Bank of San Francisco v. Credit Suisse Securities (USA) LLC, et al., and Federal Home Loan Bank of San Francisco v. Deutsche Bank Securities Inc. et al., respectively. Amended complaints filed on June 10, 2010 allege that defendants made untrue statements and material omissions in connection with the sale to plaintiff of a number of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The amount of certificates allegedly sold to plaintiff by the Company in these cases was approximately $704 million and $276 million, respectively. The complaints raise claims under both the federal securities laws and California law and seek, among other things, to rescind the plaintiff's purchase of such certificates. On July 29, 2011 and September 8, 2011, the court presiding over both actions sustained defendants' demurrers with respect to claims brought under the Securities Act of 1933, as amended, and overruled defendants' demurrers with respect to all other claims. At September 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in these cases was approximately $326 million, and the certificates had incurred actual losses of approximately $4 million. Based on currently available information, the Company believes it could incur a loss for this action up to the difference between the $326 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment. | ||||||||||||||||
On July 9, 2010 and February 11, 2011, Cambridge Place Investment Management Inc. filed two separate complaints against the Company and other defendants in the Superior Court of the Commonwealth of Massachusetts, both styled Cambridge Place Investment Management Inc. v. Morgan Stanley & Co., Inc., et al. The complaints assert claims on behalf of certain clients of plaintiff's affiliates and allege that defendants made untrue statements and material omissions in the sale of a number of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly issued by the Company or sold to plaintiff's affiliates' clients by the Company in the two matters was approximately $263 million. Plaintiff filed amended complaints on October 14, 2011, which raise claims under the Massachusetts Uniform Securities Act and seek, among other things, to rescind the plaintiff's purchase of such certificates. Defendants' motions to dismiss the amended complaints, with respect to plaintiff's standing to bring suit and for failure to state a claim upon which relief can be granted were denied in March and October 2012, respectively. At September 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in these cases was approximately $105 million, and the certificates had incurred actual losses of approximately $109 million. Based on currently available information, the Company believes it could incur a loss for these actions of up to the difference between the $105 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment. | ||||||||||||||||
On July 15, 2010, China Development Industrial Bank (“CDIB”) filed a complaint against the Company, styled China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. which is pending in the Supreme Court of the State of New York, New York County (“Supreme Court of NY”). The complaint relates to a $275 million credit default swap referencing the super senior portion of the STACK 2006-1 CDO. The complaint asserts claims for common law fraud, fraudulent inducement and fraudulent concealment and alleges that the Company misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that the Company knew that the assets backing the CDO were of poor quality when it entered into the credit default swap with CDIB. The complaint seeks compensatory damages related to the approximately $228 million that CDIB alleges it has already lost under the credit default swap, rescission of CDIB's obligation to pay an additional $12 million, punitive damages, equitable relief, fees and costs. On February 28, 2011, the court denied the Company's motion to dismiss the complaint. Based on currently available information, the Company believes it could incur a loss of up to approximately $240 million plus pre- and post-judgment interest, fees and costs. | ||||||||||||||||
On October 15, 2010, the Federal Home Loan Bank of Chicago filed a complaint against the Company and other defendants in the Circuit Court of the State of Illinois styled Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation et al. The complaint alleges that defendants made untrue statements and material omissions in the sale to plaintiff of a number of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sold to plaintiff by the Company in this action was approximately $203 million. The complaint raises claims under Illinois law and seeks, among other things, to rescind the plaintiff's purchase of such certificates. On March 24, 2011, the court granted plaintiff leave to file an amended complaint. The defendants' motion to dismiss the amended complaint was denied on September 19, 2012. The Company filed its answer on December 21, 2012. At September 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $98 million and certain certificates had incurred actual losses of approximately $1 million. Based on currently available information, the Company believes it could incur a loss in this action up to the difference between the $98 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment. | ||||||||||||||||
On July 18, 2011, the Western and Southern Life Insurance Company and certain affiliated companies filed a complaint against the Company and other defendants in the Court of Common Pleas in Ohio, styled Western and Southern Life Insurance Company, et al. v. Morgan Stanley Mortgage Capital Inc., et al. An amended complaint was filed on April 2, 2012 and alleges that defendants made untrue statements and material omissions in the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The amount of the certificates allegedly sold to plaintiffs by the Company was approximately $153 million. The amended complaint raises claims under the Ohio Securities Act, federal securities laws, and common law and seeks, among other things, to rescind the plaintiffs' purchases of such certificates. On May 21, 2012, the Company filed a motion to dismiss the amended complaint, which motion was denied on August 3, 2012. The court has set a trial date in May 2015. At September 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $119 million, and the certificates had incurred actual losses of approximately $1 million. Based on currently available information, the Company believes it could incur a loss in this action up to the difference between the $119 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus post-judgment interest, fees and costs. The Company may be entitled to an offset for interest received by the plaintiff prior to a judgment. | ||||||||||||||||
On September 2, 2011, the Federal Housing Finance Agency (“FHFA”), as conservator for Fannie Mae and Freddie Mac, filed 17 complaints against numerous financial services companies, including the Company. A complaint against the Company and other defendants was filed in the Supreme Court of NY, styled Federal Housing Finance Agency, as Conservator v. Morgan Stanley et al. The complaint alleges that defendants made untrue statements and material omissions in connection with the sale to Fannie Mae and Freddie Mac of residential mortgage pass-through certificates with an original unpaid balance of approximately $11 billion. The complaint raises claims under federal and state securities laws and common law and seeks, among other things, rescission and compensatory and punitive damages. On September 26, 2011, defendants removed the action to the United States District Court for the Southern District of New York. On July 13, 2012, the Company filed a motion to dismiss the complaint, which motion was denied in large part on November 19, 2012. Trial is currently scheduled to begin in January 2015. At September 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $2.8 billion, and the certificates had incurred actual losses of approximately $68 million. Based on currently available information, the Company believes it could incur a loss in this action up to the difference between the $2.8 billion unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment. | ||||||||||||||||
On April 25, 2012, Metropolitan Life Insurance Company and certain affiliates filed a complaint against the Company and certain affiliates in the Supreme Court of NY styled Metropolitan Life Insurance Company, et al. v. Morgan Stanley, et al. An amended complaint was filed on June 29, 2012 and alleges that defendants made untrue statements and material omissions in the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Company was approximately $758 million. The amended complaint raises common law claims of fraud, fraudulent inducement, and aiding and abetting fraud and seeks, among other things, rescission, compensatory and/or rescissionary damages, as well as punitive damages, associated with plaintiffs' purchases of such certificates. On September 21, 2012, the Company filed a motion to dismiss the amended complaint, which was granted in part and denied in part on July 16, 2013. Defendants filed a notice of appeal of that decision on August 16, 2013. Following that decision, the total amount of certificates allegedly sponsored, underwritten and/or sold by the Company was approximately $656 million. At September 25, 2013, the current unpaid balance of the mortgage pass-through certificates remaining at issue in this case was approximately $324 million, and the certificates incurred actual losses of approximately $35 million. Based on currently available information, the Company believes it could incur a loss up to the difference between the $324 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment. | ||||||||||||||||
On April 25, 2012, The Prudential Insurance Company of America and certain affiliates filed a complaint against the Company and certain affiliates in the Superior Court of the State of New Jersey styled The Prudential Insurance Company of America, et al. v. Morgan Stanley, et al. The complaint alleges that defendants made untrue statements and material omissions in connection with the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Company is approximately $1 billion. The complaint raises claims under the New Jersey Uniform Securities Law, as well as common law claims of negligent misrepresentation, fraud and tortious interference with contract and seeks, among other things, compensatory damages, punitive damages, rescission and rescissionary damages associated with plaintiffs' purchases of such certificates. On October 16, 2012, plaintiffs filed an amended complaint which, among other things, increases the total amount of the certificates at issue by approximately $80 million, adds causes of action for fraudulent inducement, equitable fraud, aiding and abetting fraud, and violations of the New Jersey RICO statute, and includes a claim for treble damages. On March 15, 2013, defendants' motion to dismiss was denied. At September 25, 2013, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $663 million, and the certificates had not yet incurred actual losses. Based on currently available information, the Company believes it could incur a loss in this action up to the difference between the $663 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Company, plus pre- and post-judgment interest, fees and costs. The Company may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment. | ||||||||||||||||
Regulatory_Requirements
Regulatory Requirements | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Regulatory Requirements | ' | |||||||||
Regulatory Requirements | ' | |||||||||
13. Regulatory Requirements. | ||||||||||
Morgan Stanley. The Company is a financial holding company under the Bank Holding Company Act of 1956, as amended, and is subject to the regulation and oversight of the Federal Reserve. The Federal Reserve establishes capital requirements for the Company, including well-capitalized standards, and evaluates the Company's compliance with such capital requirements. The Office of the Comptroller of the Currency establishes similar capital requirements and standards for Morgan Stanley Bank, N.A. and Morgan Stanley Private Bank, National Association. | ||||||||||
The Company calculates its capital ratios and risk-weighted assets (“RWAs”) in accordance with the capital adequacy standards for financial holding companies adopted by the Federal Reserve. These standards are based upon a framework described in the “International Convergence of Capital Measurement and Capital Standards,” July 1988, as amended, also referred to as Basel I. In December 2007, the U.S. banking regulators published final regulation incorporating the Basel II Accord, which requires internationally active banking organizations, as well as certain of their U.S. bank subsidiaries, to implement Basel II standards over the next several years. In July 2010, the Company began reporting its capital adequacy standards on a parallel basis to its regulators under Basel I and Basel II as part of a phased implementation of Basel II. | ||||||||||
In December 2010, the Basel Committee reached an agreement on Basel III. In July 2013, the U.S. banking regulators issued a final rule to implement many aspects of Basel III (the “U.S. Basel III final rule”). The U.S. Basel III final rule contains new capital standards that raise the capital requirements, strengthen counterparty credit risk capital requirements and replace the use of externally developed credit ratings with alternatives such as the Organisation for Economic Co-operation and Development's country risk classifications. The U.S. Basel III final rule also requires certain banking organizations, including the Company, to maintain both a capital conservation buffer and, if deployed, a countercyclical capital buffer, above the minimum risk-based capital ratios. Failure to maintain such buffers will result in restrictions on the banking organization's ability to make capital distributions and pay discretionary bonuses to executive officers. Under the U.S. Basel III final rule, the Company will be subject to a minimum Common Equity Tier 1 risk-based capital ratio of 4.5%, a minimum Tier 1 risk-based capital ratio of 6% and a minimum total risk-based capital ratio of 8% on a fully phased-in basis. In addition, the final rule provides that certain new items be deducted from Common Equity Tier 1 capital and certain Basel I deductions be modified. The majority of these capital deductions are subject to a phase-in schedule and will be fully phased-in by 2018. The Company will also be subject to a 2.5% Common Equity Tier 1 capital conservation buffer and, if deployed, up to a 2.5% Common Equity Tier 1 countercyclical buffer on a fully phased-in basis by 2019. Under the U.S. Basel III final rule, unrealized gains and losses on available-for-sale securities will be reflected in Common Equity Tier 1 capital, subject to a phase-in schedule. The U.S. Basel III final rule also subjects certain banking organizations, including the Company, to a minimum supplementary leverage ratio of 3%. The calibration of the supplementary leverage ratio is broadly similar to the December 2010 version of the Basel III leverage ratio and includes off-balance sheet exposures in the denominator. The Company will become subject to the U.S. Basel III final rule beginning on January 1, 2014. Certain requirements in the U.S. Basel III final rule, including the new capital buffers, will be phased in over several years. | ||||||||||
In June 2011, the U.S. banking regulators published final regulations implementing a provision of the Dodd-Frank Act requiring that certain institutions supervised by the Federal Reserve, including the Company, be subject to minimum capital requirements that are not less than the generally applicable risk-based capital requirements. Currently, this minimum “capital floor” is based on Basel I. Beginning January 1, 2015, the U.S. Basel III final rule will replace the current Basel I-based “capital floor” with a standardized approach that, among other things, modifies the existing risk weights for certain types of asset classes and which is applicable to both minimum capital requirements and the sum of conservation and countercyclical capital buffers if deployed. On January 1, 2013, the U.S. banking regulators' rules to implement the Basel Committee's market risk capital framework amendment, commonly referred to as “Basel 2.5”, became effective, which increased the capital requirements for securitizations and correlation trading within the Company's trading book as well as incorporated add-ons for stressed VaR and incremental risk requirements (“market risk capital framework amendment”). | ||||||||||
At September 30, 2013, the Company's capital levels calculated under Basel I, inclusive of the market risk capital framework amendment, were in excess of well-capitalized levels with ratios of Tier 1 capital to RWAs of 15.3% and total capital to RWAs of 16.1% (6% and 10% being well-capitalized for regulatory purposes, respectively). The Company's ratio of Tier 1 common capital to RWAs was 12.6% (5% under stressed conditions is the current minimum under the Federal Reserve's Comprehensive Capital Analysis and Review (“CCAR”) framework). Financial holding companies, including the Company, are subject to a Tier 1 leverage ratio defined by the Federal Reserve. Consistent with the Federal Reserve's definition, the Company calculated its Tier 1 leverage ratio as Tier 1 capital divided by adjusted average total assets (which reflects adjustments for disallowed goodwill, certain intangible assets, deferred tax assets and financial and non-financial equity investments). The adjusted average total assets are derived using weekly balances for the period. At September 30, 2013, the Company was in compliance with the Federal Reserve's Tier 1 leverage requirement, with a Tier 1 leverage ratio of 7.3% (5% is the current well-capitalized standard for regulatory purposes). | ||||||||||
The following table summarizes the capital measures for the Company: | ||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||
Balance | Ratio | Balance | Ratio | |||||||
(dollars in millions) | ||||||||||
Tier 1 common capital | $ | 48,696 | 12.60% | $ | 44,794 | 14.60% | ||||
Tier 1 capital | 58,903 | 15.30% | 54,360 | 17.70% | ||||||
Total capital | 62,055 | 16.10% | 56,626 | 18.50% | ||||||
RWAs | 385,664 | — | 306,746 | — | ||||||
Adjusted average total assets | 807,368 | — | 769,495 | — | ||||||
Tier 1 leverage | — | 7.30% | — | 7.10% | ||||||
The Company's U.S. Bank Operating Subsidiaries. The Company's U.S. bank operating subsidiaries are subject to various regulatory capital requirements as administered by U.S. federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's U.S. bank operating subsidiaries' financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company's U.S. bank operating subsidiaries must meet specific capital guidelines that involve quantitative measures of the Company's U.S. bank operating subsidiaries' assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. | ||||||||||
At September 30, 2013, the Company's U.S. bank operating subsidiaries met all capital adequacy requirements to which they are subject and exceeded all regulatory mandated and targeted minimum regulatory capital requirements to be well-capitalized. There are no conditions or events that management believes have changed the Company's U.S. bank operating subsidiaries' category. | ||||||||||
The table below sets forth the capital information for the Company's U.S. bank operating subsidiaries, which are U.S. depository institutions, calculated in a manner consistent with the guidelines described under Basel I, inclusive of the market risk capital framework amendment: | ||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||
Amount | Ratio | Amount | Ratio | |||||||
(dollars in millions) | ||||||||||
Total capital (to RWAs): | ||||||||||
MSBNA(1) | $ | 12,211 | 16.70% | $ | 11,509 | 16.70% | ||||
MSPBNA | $ | 2,154 | 29.60% | $ | 1,673 | 28.80% | ||||
Tier 1 capital (to RWAs): | ||||||||||
MSBNA(1) | $ | 10,549 | 14.50% | $ | 9,918 | 14.40% | ||||
MSPBNA | $ | 2,148 | 29.50% | $ | 1,665 | 28.70% | ||||
Tier 1 leverage: | ||||||||||
MSBNA | $ | 10,549 | 10.80% | $ | 9,918 | 13.30% | ||||
MSPBNA | $ | 2,148 | 10.60% | $ | 1,665 | 10.60% | ||||
____________ | ||||||||||
(1) MSBNA's Tier 1 capital ratio and Total capital ratio at December 31, 2012 were each reduced by approximately 50 basis points due to an approximate $2.0 billion adjustment to notional value of derivatives contracts, which resulted in an increase to MSBNA's RWAs by such amount. | ||||||||||
Under regulatory capital requirements adopted by the U.S. federal banking agencies, U.S. depository institutions, in order to be considered well-capitalized, must maintain a ratio of total capital to RWAs of 10%, a capital ratio of Tier 1 capital to RWAs of 6%, and a ratio of Tier 1 capital to average total assets (leverage ratio) of 5%. Each U.S. depository institution subsidiary of the Company must be well-capitalized in order for the Company to continue to qualify as a financial holding company and to continue to engage in the broadest range of financial activities permitted for financial holding companies. At September 30, 2013 and December 31, 2012, the Company's U.S. depository institutions maintained capital at levels in excess of the universally mandated well-capitalized levels. These subsidiary depository institutions maintain capital at levels sufficiently in excess of the “well-capitalized” requirements to address any additional capital needs and requirements identified by the federal banking regulators. | ||||||||||
MS&Co. and Other Broker-Dealers. MS&Co. is a registered broker-dealer and registered futures commission merchant and, accordingly, is subject to the minimum net capital requirements of the U.S. Securities and Exchange Commission (the “SEC”), the Financial Industry Regulatory Authority, Inc. and the U.S. Commodity Futures Trading Commission (the “CFTC”). MS&Co. has consistently operated with capital in excess of its regulatory capital requirements. MS&Co.'s net capital totaled $7,222 million and $7,820 million at September 30, 2013 and December 31, 2012, respectively, which exceeded the amount required by $5,691 million and $6,453 million, respectively. MS&Co. is required to hold tentative net capital in excess of $1 billion and net capital in excess of $500 million in accordance with the market and credit risk standards of Appendix E of SEC Rule 15c3-1. MS&Co. is also required to notify the SEC in the event that its tentative net capital is less than $5 billion. At September 30, 2013, MS&Co. had tentative net capital in excess of the minimum and the notification requirements. | ||||||||||
MSSB LLC is a registered broker-dealer and registered futures commission merchant and, accordingly, is subject to the minimum net capital requirements of the SEC, the Financial Industry Regulatory Authority, Inc. and the CFTC. MSSB LLC has consistently operated with capital in excess of its regulatory capital requirements. | ||||||||||
MSIP, a London-based broker-dealer subsidiary, is subject to the capital requirements of the Prudential Regulation Authority, and MSMS, a Tokyo-based broker-dealer subsidiary, is subject to the capital requirements of the Financial Services Agency. MSIP and MSMS have consistently operated with capital in excess of their respective regulatory capital requirements. | ||||||||||
Other Regulated Subsidiaries. Certain other U.S. and non-U.S. subsidiaries are subject to various securities, commodities and banking regulations, and capital adequacy requirements promulgated by the regulatory and exchange authorities of the countries in which they operate. These subsidiaries have consistently operated with capital in excess of their local capital adequacy requirements. | ||||||||||
Morgan Stanley Derivative Products Inc. (“MSDP”), a derivative products subsidiary rated A2 by Moody's and AA- by S&P, maintains certain operating restrictions that have been reviewed by Moody's and S&P. MSDP is operated such that creditors of the Company should not expect to have any claims on the assets of MSDP, unless and until the obligations to its own creditors are satisfied in full. Creditors of MSDP should not expect to have any claims on the assets of the Company or any of its affiliates, other than the respective assets of MSDP. |
Redeemable_Noncontrolling_Inte
Redeemable Noncontrolling Interests and Total Equity | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Redeemable Noncontrolling Interests and Total Equity | ' | |||||||||||||
Total Equity | ' | |||||||||||||
14. Redeemable Noncontrolling Interests and Total Equity. | ||||||||||||||
Redeemable Noncontrolling Interests. | ||||||||||||||
Redeemable noncontrolling interests related to the Wealth Management JV (see Note 3). Changes in redeemable noncontrolling interests for the nine months ended September 30, 2013 were as follows (dollars in millions): | ||||||||||||||
Balance at December 31, 2012 | $ | 4,309 | ||||||||||||
Net income applicable to redeemable noncontrolling interests | 222 | |||||||||||||
Distributions | -38 | |||||||||||||
Other | -11 | |||||||||||||
Carrying value of additional stake in Wealth Management JV purchased from Citi | -4,482 | |||||||||||||
Balance at September 30, 2013 | $ | — | ||||||||||||
Total Equity. | ||||||||||||||
Morgan Stanley Shareholders' Equity. | ||||||||||||||
In July 2013, the Company received no objection from the Federal Reserve to repurchase up to $500 million of the Company's outstanding common stock under rules permitting annual capital distributions (12 Code of Federal Regulations 225.8, Capital Planning). Share repurchases are made pursuant to the share repurchase program previously authorized by the Company's Board of Directors and will be exercised from time to time through March 31, 2014, at prices the Company deems appropriate subject to various factors, including the Company's capital position and market conditions. The share repurchases may be effected through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans, and may be suspended at any time (see “Unregistered Sales of Equity Securities and Use of Proceeds” in Part II, Item 2). | ||||||||||||||
During the quarter ended September 30, 2013, the Company repurchased approximately $123 million of the Company's outstanding common stock as part of its share repurchase program. During the quarter and nine months ended September 30, 2012, the Company did not repurchase common stock as part of its share repurchase program. At September 30, 2013, the Company had approximately $1.4 billion remaining under its current share repurchase program. Share repurchases by the Company are subject to regulatory approval. | ||||||||||||||
Series E Preferred Stock. On September 30, 2013, the Company issued 34,500,000 Depositary Shares, for an aggregate price of $862 million. Each Depositary Share represents a 1/1,000th interest in a share of perpetual Series E Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value (“Series E Preferred Stock”). The Series E Preferred Stock is redeemable at the Company's option, (i) in whole or in part, from time to time, on any dividend payment date on or after October 15, 2023 or (ii) in whole but not in part at any time within 90 days following a regulatory capital treatment event (as defined therein), in each case at a redemption price of $25,000 per share (equivalent to $25 per Depositary Share). The Series E Preferred Stock also has a preference over the Company's common stock upon liquidation. The Series E Preferred Stock offering (net of related issuance costs) resulted in proceeds of approximately $854 million. | ||||||||||||||
Accumulated Other Comprehensive Income (Loss). | ||||||||||||||
The following table presents changes in Accumulated other comprehensive income (loss) by component, net of tax and net of noncontrolling interests, in the quarter ended September 30, 2013 (dollars in millions): | ||||||||||||||
Change in | ||||||||||||||
Foreign | Net Change | Net Unrealized | Pension, | |||||||||||
Currency | in | Gains (Losses) on | Postretirement | |||||||||||
Translation | Cash Flow | Securities | and Other Related | |||||||||||
Adjustments | Hedges | Available for Sale | Adjustments | Total | ||||||||||
Balance at June 30, 2013 | $ | -420 | $ | -3 | $ | -218 | $ | -528 | $ | -1,169 | ||||
Other comprehensive income (loss) before | ||||||||||||||
reclassifications | 117 | — | 37 | — | 154 | |||||||||
Amounts reclassified from accumulated | ||||||||||||||
other comprehensive income (loss) | — | 1 | -4 | 4 | 1 | |||||||||
Net other comprehensive income (loss) during | ||||||||||||||
the period | 117 | 1 | 33 | 4 | 155 | |||||||||
Balance at September 30, 2013 | $ | -303 | $ | -2 | $ | -185 | $ | -524 | $ | -1,014 | ||||
The following table presents changes in Accumulated other comprehensive income (loss) by component, net of tax and net of noncontrolling interests, in the nine months ended September 30, 2013 (dollars in millions): | ||||||||||||||
Change in | ||||||||||||||
Foreign | Net Change | Net Unrealized | Pension, | |||||||||||
Currency | in | Gains (Losses) on | Postretirement | |||||||||||
Translation | Cash Flow | Securities | and Other Related | |||||||||||
Adjustments | Hedges | Available for Sale | Adjustments | Total | ||||||||||
Balance at December 31, 2012 | $ | -123 | $ | -5 | $ | 151 | $ | -539 | $ | -516 | ||||
Other comprehensive income (loss) before | ||||||||||||||
reclassifications | -180 | — | -310 | 2 | -488 | |||||||||
Amounts reclassified from accumulated | ||||||||||||||
other comprehensive income (loss) | — | 3 | -26 | 13 | -10 | |||||||||
Net other comprehensive income (loss) during | ||||||||||||||
the period | -180 | 3 | -336 | 15 | -498 | |||||||||
Balance at September 30, 2013 | $ | -303 | $ | -2 | $ | -185 | $ | -524 | $ | -1,014 | ||||
The Company had no significant reclassifications out of Accumulated other comprehensive income (loss) for the quarter and nine months ended September 30, 2013. | ||||||||||||||
Nonredeemable Noncontrolling Interests. | ||||||||||||||
Changes in nonredeemable noncontrolling interests primarily resulted from distributions related to MSMS of $292 million and a real estate fund of $195 million in the nine months ended September 30, 2013. In September 2012, the Company reclassified approximately $4.3 billion from nonredeemable noncontrolling interests to redeemable noncontrolling interests for Citi's remaining 35% interest in the Wealth Management JV (see Note 3). Changes in nonredeemable noncontrolling interests in the nine months ended September 30, 2012 also included distributions related to MSMS of $151 million. |
Earnings_Per_Common_Share
Earnings Per Common Share | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Earnings Per Common Share | ' | ||||||||||
15. Earnings per Common Share. | |||||||||||
Basic earnings per common share (“EPS”) is computed by dividing earnings (loss) applicable to Morgan Stanley common shareholders by the weighted average number of common shares outstanding for the period. Common shares outstanding include common stock and vested restricted stock units (“RSUs”) where recipients have satisfied either the explicit vesting terms or retirement eligibility requirements. Diluted EPS reflects the assumed conversion of all dilutive securities. The Company calculates EPS using the two-class method and determines whether instruments granted in share-based payment transactions are participating securities (see Note 2 to the consolidated financial statements for the year ended December 31, 2012 in the Form 10-K). The following table presents the calculation of basic and diluted EPS (in millions, except for per share data): | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Basic EPS: | |||||||||||
Income (loss) from continuing operations | $ | 1,000 | $ | -958 | $ | 3,470 | $ | -97 | |||
Net gain (loss) from discontinued operations | 18 | 2 | -30 | 25 | |||||||
Net income (loss) | 1,018 | -956 | 3,440 | -72 | |||||||
Net income applicable to redeemable noncontrolling interests | — | 8 | 222 | 8 | |||||||
Net income applicable to nonredeemable noncontrolling interests | 112 | 59 | 370 | 446 | |||||||
Net income (loss) applicable to Morgan Stanley | 906 | -1,023 | 2,848 | -526 | |||||||
Less: Preferred dividends (Series A Preferred Stock) | -11 | -11 | -33 | -33 | |||||||
Less: Preferred dividends (Series C Preferred Stock) | -13 | -13 | -39 | -39 | |||||||
Less: Wealth Management JV redemption value adjustment | |||||||||||
(see Note 3) | — | — | -151 | — | |||||||
Less: Allocation of (earnings) loss to participating RSUs(1): | |||||||||||
From continuing operations | -2 | — | -6 | -1 | |||||||
Earnings (loss) applicable to Morgan Stanley common shareholders | $ | 880 | $ | -1,047 | $ | 2,619 | $ | -599 | |||
Weighted average common shares outstanding | 1,909 | 1,889 | 1,906 | 1,884 | |||||||
Earnings (loss) per basic common share: | |||||||||||
Income (loss) from continuing operations | $ | 0.45 | $ | -0.55 | $ | 1.39 | $ | -0.32 | |||
Net gain (loss) from discontinued operations | 0.01 | — | -0.02 | — | |||||||
Earnings (loss) per basic common share | $ | 0.46 | $ | -0.55 | $ | 1.37 | $ | -0.32 | |||
Diluted EPS: | |||||||||||
Earnings (loss) applicable to Morgan Stanley common shareholders | $ | 880 | $ | -1,047 | $ | 2,619 | $ | -599 | |||
Weighted average common shares outstanding | 1,909 | 1,889 | 1,906 | 1,884 | |||||||
Effect of dilutive securities: | |||||||||||
Stock options and RSUs(1) | 56 | — | 46 | — | |||||||
Weighted average common shares outstanding and common | |||||||||||
stock equivalents | 1,965 | 1,889 | 1,952 | 1,884 | |||||||
Earnings (loss) per diluted common share: | |||||||||||
Income (loss) from continuing operations | $ | 0.44 | $ | -0.55 | $ | 1.36 | $ | -0.32 | |||
Net gain (loss) from discontinued operations | 0.01 | — | -0.02 | — | |||||||
Earnings (loss) per diluted common share | $ | 0.45 | $ | -0.55 | $ | 1.34 | $ | -0.32 | |||
_____________ | |||||||||||
(1) RSUs that are considered participating securities participate in all of the earnings of the Company in the computation of basic EPS, and, therefore, such RSUs are not included as incremental shares in the diluted calculation. | |||||||||||
The following securities were considered antidilutive and, therefore, were excluded from the computation of diluted EPS: | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
Number of Antidilutive Securities Outstanding at End of Period: | 2013 | 2012 | 2013 | 2012 | |||||||
(shares in millions) | |||||||||||
RSUs and performance-based stock units | 4 | 87 | 4 | 87 | |||||||
Stock options | 32 | 44 | 32 | 44 | |||||||
Total | 36 | 131 | 36 | 131 |
Interest_Income_and_Interest_E
Interest Income and Interest Expense | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Interest Income And Interest Expense | ' | ||||||||||
Interest Income And Interest Expense | ' | ||||||||||
16. Interest Income and Interest Expense. | |||||||||||
Details of Interest income and Interest expense were as follows: | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
(dollars in millions) | |||||||||||
Interest income(1): | |||||||||||
Trading assets(2) | $ | 494 | $ | 648 | $ | 1,742 | $ | 2,101 | |||
Securities available for sale | 111 | 80 | 317 | 242 | |||||||
Loans | 299 | 161 | 790 | 418 | |||||||
Interest bearing deposits with banks | 38 | 44 | 89 | 95 | |||||||
Federal funds sold and securities purchased under agreements to | |||||||||||
resell and Securities borrowed | 50 | 64 | 213 | 223 | |||||||
Other | 319 | 382 | 980 | 1,165 | |||||||
Total interest income | $ | 1,311 | $ | 1,379 | $ | 4,131 | $ | 4,244 | |||
Interest expense(1): | |||||||||||
Deposits | $ | 44 | $ | 46 | $ | 126 | $ | 136 | |||
Commercial paper and other short-term borrowings | 4 | 11 | 18 | 35 | |||||||
Long-term debt | 957 | 1,256 | 2,834 | 3,597 | |||||||
Securities sold under agreements to repurchase and Securities | |||||||||||
loaned | 403 | 453 | 1,371 | 1,445 | |||||||
Other | -208 | -232 | -718 | -595 | |||||||
Total interest expense | $ | 1,200 | $ | 1,534 | $ | 3,631 | $ | 4,618 | |||
Net interest | $ | 111 | $ | -155 | $ | 500 | $ | -374 | |||
_____________ | |||||||||||
(1) Interest income and expense are recorded within the condensed consolidated statements of income depending on the nature of the instrument and related market conventions. When interest is included as a component of the instrument's fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. | |||||||||||
(2) Interest expense on Trading liabilities is reported as a reduction to Interest income on Trading assets. | |||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Employee Benefit Plans | ' | |||||||||
Employee Benefit Plans | ' | |||||||||
17. Employee Benefit Plans. | ||||||||||
The Company sponsors various pension plans for the majority of its U.S. and non-U.S. employees. The Company provides certain other postretirement benefits, primarily health care and life insurance, to eligible U.S. employees. The Company also provides certain postemployment benefits to certain former employees or inactive employees prior to retirement. | ||||||||||
The components of the Company's net periodic benefit expense for its pension and postretirement plans were as follows: | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
(dollars in millions) | ||||||||||
Service cost, benefits earned during the period | $ | 6 | $ | 7 | $ | 20 | $ | 22 | ||
Interest cost on projected benefit obligation | 40 | 40 | 118 | 122 | ||||||
Expected return on plan assets | -28 | -27 | -85 | -82 | ||||||
Net amortization of prior service costs | -3 | -3 | -10 | -10 | ||||||
Net amortization of actuarial loss | 9 | 7 | 29 | 21 | ||||||
Net periodic benefit expense | $ | 24 | $ | 24 | $ | 72 | $ | 73 |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
18. Income Taxes. | |
The Company is under continuous examination by the Internal Revenue Service (the “IRS”) and other tax authorities in certain countries, such as Japan and the U.K., and in states in which the Company has significant business operations, such as New York. The Company is currently under review by the IRS Appeals Office for the remaining issues covering tax years 1999 – 2005. Also, the Company is currently at various levels of field examination with respect to audits with the IRS, as well as New York State, New York City and Japan, for tax years 2006 – 2008, 2007 – 2009 and 2012, respectively. During 2013, the Company expects to reach a conclusion with the U.K. tax authorities on substantially all issues through tax year 2010. | |
The Company believes that the resolution of tax matters will not have a material effect on the condensed consolidated statements of financial condition of the Company, although a resolution could have a material impact on the Company's condensed consolidated statements of income for a particular future period and on the Company's effective income tax rate for any period in which such resolution occurs. The Company has established a liability for unrecognized tax benefits that the Company believes is adequate in relation to the potential for additional assessments. Once established, the Company adjusts unrecognized tax benefits only when more information is available or when an event occurs necessitating a change. | |
It is reasonably possible that significant changes in the gross balance of unrecognized tax benefits may occur within the next 12 months. At this time, however, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits and impact on the effective tax rate over the next 12 months. | |
The Company's effective tax rate from continuing operations for the quarter and nine months ended September 30, 2013 included a discrete net tax benefit of $73 million that is attributable to tax planning strategies to optimize foreign tax credit utilization as a result of the anticipated repatriation of earnings from certain non-U.S. subsidiaries. Additionally, the Company's effective tax rate from continuing operations for the nine months ended September 30, 2013 included a discrete tax benefit of $81 million due to the retroactive effective date of the American Taxpayer Relief Act of 2012 (the “Relief Act”). The Relief Act that was enacted on January 2, 2013, among other things, extended with retroactive effect to January 1, 2012 a provision of U.S. tax law that defers the imposition of tax on certain active financial services income of certain foreign subsidiaries earned outside of the U.S. until such income is repatriated to the U.S. as a dividend. Also, the Company's effective tax rate from continuing operations for the nine months ended September 30, 2013 included a discrete net tax benefit of $61 million associated with remeasurement of reserves and related interest based on new information regarding the status of certain tax authority examinations. Excluding these discrete net tax benefits, the annual effective tax rate in the nine months ended September 30, 2013 would have been 30.7%. | |
The Company's effective tax rate from continuing operations for the quarter and nine months ended September 30, 2012 included an $82 million out-of-period net income tax provision adjustment in the Institutional Securities business segment primarily related to the overstatement of tax benefits associated with repatriated earnings of a non-U.S. subsidiary in 2010. The Company has evaluated the effects of the understatement of income tax provision both qualitatively and quantitatively, and concluded that it did not have a material impact on any prior annual or quarterly consolidated financial statements. Excluding this out-of-period net income tax provision adjustment, the annual effective tax rate for the nine months ended September 30, 2012 would have been 95.6%. | |
Segment_and_Geographic_Informa
Segment and Geographic Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment And Geographic Information | ' | ||||||||||||||||
19. Segment and Geographic Information. | |||||||||||||||||
Segment Information. | |||||||||||||||||
The Company structures its segments primarily based upon the nature of the financial products and services provided to customers and the Company's management organization. The Company provides a wide range of financial products and services to its customers in each of its business segments: Institutional Securities, Wealth Management and Investment Management. For further discussion of the Company's business segments, see Note 1. | |||||||||||||||||
Revenues and expenses directly associated with each respective segment are included in determining its operating results. Other revenues and expenses that are not directly attributable to a particular segment are allocated based upon the Company's allocation methodologies, generally based on each segment's respective net revenues, non-interest expenses or other relevant measures. | |||||||||||||||||
As a result of treating certain intersegment transactions as transactions with external parties, the Company includes an Intersegment Eliminations category to reconcile the business segment results to the Company's consolidated results. Intersegment Eliminations also reflect the effect of fees paid by the Institutional Securities business segment to the Wealth Management business segment related to the bank deposit program. | |||||||||||||||||
Selected financial information for the Company's segments is presented below: | |||||||||||||||||
Three Months Ended September 30, 2013 | Institutional Securities | Wealth Management | Investment Management | Intersegment Eliminations | Total | ||||||||||||
(dollars in millions) | |||||||||||||||||
Total non-interest revenues | $ | 4,071 | $ | 2,988 | $ | 828 | $ | -66 | $ | 7,821 | |||||||
Interest income | 897 | 532 | 2 | -120 | 1,311 | ||||||||||||
Interest expense | 1,282 | 39 | 2 | -123 | 1,200 | ||||||||||||
Net interest | -385 | 493 | — | 3 | 111 | ||||||||||||
Net revenues(1) | $ | 3,686 | $ | 3,481 | $ | 828 | $ | -63 | $ | 7,932 | |||||||
Income from continuing operations before income | |||||||||||||||||
taxes | $ | 371 | $ | 668 | $ | 300 | $ | — | $ | 1,339 | |||||||
Provision for income taxes | — | 238 | 101 | — | 339 | ||||||||||||
Income from continuing operations | 371 | 430 | 199 | — | 1,000 | ||||||||||||
Discontinued operations(2): | |||||||||||||||||
Gain (loss) from discontinued operations | -7 | — | 8 | 15 | 16 | ||||||||||||
Provision for (benefit from) income taxes | -5 | — | — | 3 | -2 | ||||||||||||
Net gain (loss) on discontinued operations | -2 | — | 8 | 12 | 18 | ||||||||||||
Net income | 369 | 430 | 207 | 12 | 1,018 | ||||||||||||
Net income applicable to nonredeemable noncontrolling | |||||||||||||||||
interests | 48 | — | 64 | — | 112 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 321 | $ | 430 | $ | 143 | $ | 12 | $ | 906 | |||||||
Three Months Ended September 30, 2012 | Institutional Securities(3) | Wealth Management (3) | Investment Management | Intersegment Eliminations | Total | ||||||||||||
(dollars in millions) | |||||||||||||||||
Total non-interest revenues | $ | 2,031 | $ | 2,823 | $ | 635 | $ | -54 | $ | 5,435 | |||||||
Interest income | 1,017 | 476 | 2 | -116 | 1,379 | ||||||||||||
Interest expense | 1,567 | 77 | 6 | -116 | 1,534 | ||||||||||||
Net interest | -550 | 399 | -4 | — | -155 | ||||||||||||
Net revenues(1) | $ | 1,481 | $ | 3,222 | $ | 631 | $ | -54 | $ | 5,280 | |||||||
Income (loss) from continuing operations before income | |||||||||||||||||
taxes | $ | -1,928 | $ | 247 | $ | 198 | $ | — | $ | -1,483 | |||||||
Provision for (benefit from) income taxes | -662 | 93 | 44 | — | -525 | ||||||||||||
Income (loss) from continuing operations | -1,266 | 154 | 154 | — | -958 | ||||||||||||
Discontinued operations(2): | |||||||||||||||||
Gain (loss) from discontinued operations | -23 | — | 12 | — | -11 | ||||||||||||
Provision for (benefit from) income taxes | -8 | -5 | — | — | -13 | ||||||||||||
Net gain (loss) on discontinued operations | -15 | 5 | 12 | — | 2 | ||||||||||||
Net income (loss) | -1,281 | 159 | 166 | — | -956 | ||||||||||||
Net income applicable to redeemable noncontrolling | |||||||||||||||||
interests | — | 8 | — | — | 8 | ||||||||||||
Net income applicable to nonredeemable noncontrolling | |||||||||||||||||
interests | 8 | 1 | 50 | — | 59 | ||||||||||||
Net income (loss) applicable to Morgan Stanley | $ | -1,289 | $ | 150 | $ | 116 | $ | — | $ | -1,023 | |||||||
Nine Months Ended September 30, 2013 | Institutional Securities | Wealth Management | Investment Management | Intersegment Eliminations | Total | ||||||||||||
(dollars in millions) | |||||||||||||||||
Total non-interest revenues | $ | 12,970 | $ | 9,130 | $ | 2,151 | $ | -158 | $ | 24,093 | |||||||
Interest income | 2,950 | 1,531 | 7 | -357 | 4,131 | ||||||||||||
Interest expense | 3,799 | 179 | 12 | -359 | 3,631 | ||||||||||||
Net interest | -849 | 1,352 | -5 | 2 | 500 | ||||||||||||
Net revenues(1) | $ | 12,121 | $ | 10,482 | $ | 2,146 | $ | -156 | $ | 24,593 | |||||||
Income from continuing operations before income | |||||||||||||||||
taxes | $ | 2,129 | $ | 1,920 | $ | 647 | $ | — | $ | 4,696 | |||||||
Provision for income taxes | 348 | 687 | 191 | — | 1,226 | ||||||||||||
Income from continuing operations | 1,781 | 1,233 | 456 | — | 3,470 | ||||||||||||
Discontinued operations(2): | |||||||||||||||||
Gain (loss) from discontinued operations | -64 | -1 | 9 | 1 | -55 | ||||||||||||
Provision for (benefit from) income taxes | -25 | — | — | — | -25 | ||||||||||||
Net gain (loss) on discontinued operations | -39 | -1 | 9 | 1 | -30 | ||||||||||||
Net income | 1,742 | 1,232 | 465 | 1 | 3,440 | ||||||||||||
Net income applicable to redeemable noncontrolling | |||||||||||||||||
interests | 1 | 221 | — | — | 222 | ||||||||||||
Net income applicable to nonredeemable noncontrolling | |||||||||||||||||
interests | 234 | — | 136 | — | 370 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 1,507 | $ | 1,011 | $ | 329 | $ | 1 | $ | 2,848 | |||||||
Nine Months Ended September 30, 2012 | Institutional Securities(3) | Wealth Management (3) | Investment Management | Intersegment Eliminations | Total | ||||||||||||
(dollars in millions) | |||||||||||||||||
Total non-interest revenues | $ | 9,480 | $ | 8,530 | $ | 1,641 | $ | -131 | $ | 19,520 | |||||||
Interest income | 3,158 | 1,390 | 7 | -311 | 4,244 | ||||||||||||
Interest expense | 4,690 | 211 | 28 | -311 | 4,618 | ||||||||||||
Net interest | -1,532 | 1,179 | -21 | — | -374 | ||||||||||||
Net revenues(1) | $ | 7,948 | $ | 9,709 | $ | 1,620 | $ | -131 | $ | 19,146 | |||||||
Income (loss) from continuing operations before income | |||||||||||||||||
taxes | $ | -1,769 | $ | 1,060 | $ | 369 | $ | -4 | $ | -344 | |||||||
Provision for (benefit from) income taxes | -699 | 364 | 88 | — | -247 | ||||||||||||
Income (loss) from continuing operations | -1,070 | 696 | 281 | -4 | -97 | ||||||||||||
Discontinued operations(2): | |||||||||||||||||
Gain (loss) from discontinued operations | -41 | 93 | 13 | 3 | 68 | ||||||||||||
Provision for (benefit from) income taxes | 18 | 26 | — | -1 | 43 | ||||||||||||
Net gain (loss) on discontinued operations | -59 | 67 | 13 | 4 | 25 | ||||||||||||
Net income (loss) | -1,129 | 763 | 294 | — | -72 | ||||||||||||
Net income applicable to redeemable noncontrolling | |||||||||||||||||
interests | — | 8 | — | — | 8 | ||||||||||||
Net income applicable to nonredeemable noncontrolling | |||||||||||||||||
interests | 132 | 176 | 138 | — | 446 | ||||||||||||
Net income (loss) applicable to Morgan Stanley | $ | -1,261 | $ | 579 | $ | 156 | $ | — | $ | -526 | |||||||
(1) In certain management fee arrangements, the Company is entitled to receive performance-based fees (also referred to as incentive fees) when the return on assets under management exceeds certain benchmark returns or other performance targets. In such arrangements, performance fee revenue is accrued (or reversed) quarterly based on measuring account fund performance to date versus the performance benchmark stated in the investment management agreement. The amount of performance-based fee revenue at risk of reversing if fund performance falls below stated investment management agreement benchmarks was approximately $446 million at September 30, 2013 and approximately $205 million at December 31, 2012 (see Note 2 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K). | |||||||||||||||||
(2) See Notes 1 and 21 for discussion of discontinued operations. | |||||||||||||||||
(3) On January 1, 2013, the International Wealth Management business was transferred from the Wealth Management business segment to the Equity division within the Institutional Securities business segment. Accordingly, prior period amounts have been recast to reflect the International Wealth Management business as part of the Institutional Securities business segment. | |||||||||||||||||
Total Assets(1) | Institutional Securities(2) | Wealth Management (2) | Investment Management | Total | |||||||||||||
(dollars in millions) | |||||||||||||||||
At September 30, 2013 | $ | 675,676 | $ | 149,156 | $ | 7,391 | $ | 832,223 | |||||||||
At December 31, 2012 | $ | 648,049 | $ | 125,565 | $ | 7,346 | $ | 780,960 | |||||||||
(1) Corporate assets have been fully allocated to the Company's business segments. | |||||||||||||||||
(2) Prior period amounts have been recast to reflect the transfer of the International Wealth Management business from the Wealth Management business segment to the Institutional Securities business segment. | |||||||||||||||||
Geographic Information. | |||||||||||||||||
The Company operates in both U.S. and non-U.S. markets. The Company's non-U.S. business activities are principally conducted and managed through European and Asian locations. The net revenues disclosed in the following table reflect the regional view of the Company's consolidated net revenues on a managed basis, based on the following methodology: | |||||||||||||||||
• Institutional Securities: advisory and equity underwriting—client location, debt underwriting—revenue recording location, sales and trading—trading desk location. | |||||||||||||||||
• Wealth Management: wealth management representative coverage location. | |||||||||||||||||
• Investment Management: client location, except for Merchant Banking and Real Estate Investing businesses, which are based on asset location. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Net Revenues | 2013 | 2012 | 2013 | 2012 | |||||||||||||
(dollars in millions) | |||||||||||||||||
Americas | $ | 5,665 | $ | 4,744 | $ | 17,635 | $ | 14,632 | |||||||||
Europe, Middle East and Africa | 1,148 | 296 | 3,346 | 2,422 | |||||||||||||
Asia | 1,119 | 240 | 3,612 | 2,092 | |||||||||||||
Net revenues | $ | 7,932 | $ | 5,280 | $ | 24,593 | $ | 19,146 |
Equity_Method_Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
Equity Method Investments | ' |
20. Equity Method Investments. | |
The Company has investments accounted for under the equity method of accounting (see Note 1) of $4,756 million and $4,682 million at September 30, 2013 and December 31, 2012, respectively, included in Other investments in the condensed consolidated statements of financial condition. Income from these investments were $148 million and $339 million for the quarter and nine months ended September 30, 2013, respectively, and are included in Other revenues in the condensed consolidated statements of income. Losses from these investments were $3 million and $24 million for the quarter and nine months ended September 30, 2012, respectively. | |
Japanese Securities Joint Venture. | |
The Company holds a 40% voting interest and Mitsubishi UFJ Financial Group, Inc. (“MUFG”) holds a 60% voting interest in Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“MUMSS”), while the Company holds a 51% voting interest and MUFG holds a 49% voting interest in MSMS. The Company consolidates MSMS in its condensed consolidated financial statements and accounts for its interest in MUMSS as an equity method investment within the Institutional Securities business segment (see Note 14). During the quarters ended September 30, 2013 and 2012, the Company recorded income of $188 million and $36 million, respectively, and income of $487 million and $117 million in the nine months ended September 30, 2013 and 2012, respectively, within Other revenues in the condensed consolidated statements of income, arising from the Company's 40% stake in MUMSS. | |
In June 2013, MUMSS paid a dividend of approximately $287 million, of which the Company received approximately $115 million for its proportionate share of MUMSS. | |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Discontinued Operations | ' | |||||||||
Discontinued Operations | ' | |||||||||
21. Discontinued Operations. | ||||||||||
See Note 1 for a discussion of the Company's discontinued operations. | ||||||||||
The table below provides information regarding amounts included in discontinued operations: | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
(dollars in millions) | ||||||||||
Net revenues(1): | ||||||||||
Saxon | $ | — | $ | -1 | $ | — | $ | 76 | ||
Quilter | — | — | -1 | 163 | ||||||
Other(2) | 15 | 21 | -3 | 35 | ||||||
$ | 15 | $ | 20 | $ | -4 | $ | 274 | |||
Pre-tax gain (loss) on discontinued operations(1): | ||||||||||
Saxon | $ | -14 | $ | -25 | $ | -53 | $ | -40 | ||
Quilter(3) | — | — | -1 | 97 | ||||||
Other(2) | 30 | 14 | -1 | 11 | ||||||
$ | 16 | $ | -11 | $ | -55 | $ | 68 | |||
_____________ | ||||||||||
(1) Amounts included eliminations of intersegment activity. | ||||||||||
(2) Amounts included in Other are related to the sale of the Company's retail asset management business, a principal investment and other. | ||||||||||
(3) Amount for the nine months ended September 30, 2012 included a pre-tax gain of approximately $108 million in connection with the sale of Quilter. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
22. Subsequent Events. | |
The Company has evaluated subsequent events for adjustment to or disclosure in the condensed consolidated financial statements through the date of this report and the Company has not identified any recordable or disclosable events, not otherwise reported in these condensed consolidated financial statements or the notes thereto, except for the following: | |
Common Dividend. | |
On October 18, 2013, the Company announced that its Board of Directors declared a quarterly dividend per common share of $0.05. The dividend is payable on November 15, 2013 to common shareholders of record on October 31, 2013. | |
Long-Term Borrowing. | |
Subsequent to September 30, 2013 and through October 31, 2013, the Company's long-term borrowings (net of issuances) decreased by approximately $1.3 billion. | |
Deposits. | |
In October 2013, approximately $1.7 billion of deposits held by Citi relating to customer accounts were transferred to the Company's depository institutions (see Note 3). | |
Significant_Accounting_Policie1
Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Consolidated Statements Of Cash Flows | ' |
For purposes of the condensed consolidated statements of cash flows, cash and cash equivalents consist of Cash and due from banks and Interest bearing deposits with banks, which are highly liquid investments with original maturities of three months or less, held for investment purposes, and readily convertible to known amounts of cash. | |
In the nine months ended September 30, 2012, the Company's significant non-cash activities included approximately $1.1 billion of net assets received from Citigroup, Inc. (“Citi”) related to Citi's required equity contribution in connection with the Morgan Stanley Smith Barney Holdings LLC (“Wealth Management JV”) platform integration (see Notes 3 and 14). | |
Accounting Developments | ' |
Accounting Developments. | |
Disclosures about Offsetting Assets and Liabilities. In January 2013, the Financial Accounting Standards Board (the “FASB”) issued an accounting update that clarified the intended scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement. These disclosure requirements became effective for the Company beginning on January 1, 2013. Since these amended principles require only additional disclosures concerning offsetting and related arrangements, adoption has not affected the Company's condensed consolidated statements of income or financial condition (see Notes 6 and 11). | |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. In February 2013, the FASB issued an accounting update that created new disclosure requirements requiring entities to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles (“GAAP”) to be reclassified in its entirety to net income. The disclosure requirements became effective for the Company beginning on January 1, 2013. Since these amended principles require only additional disclosures concerning amounts reclassified out of accumulated other comprehensive income, adoption has not affected the Company's condensed consolidated statements of comprehensive income or notes to the condensed consolidated financial statements (see Note 14). | |
Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. In July 2013, the FASB issued an accounting update that included amendments permitting the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to interest rates on direct Treasury obligations of the U.S. government and the London Interbank Offered Rate (“LIBOR”). The amendments also removed the restriction on using different benchmark rates for similar hedges. The amendments became effective for the Company for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this accounting guidance did not have a material impact on the Company's condensed consolidated financial statements. |
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Fair Value Disclosures | ' | |||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Counterparty and Cash Collateral Netting | Balance at September 30, 2013 | ||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Assets at Fair Value | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||||||||
U.S. Treasury securities | $ | 38,453 | $ | 8 | $ | — | $ | — | $ | 38,461 | ||||||||||||
U.S. agency securities | 2,030 | 21,381 | — | — | 23,411 | |||||||||||||||||
Total U.S. government and agency securities | 40,483 | 21,389 | — | — | 61,872 | |||||||||||||||||
Other sovereign government obligations | 24,605 | 7,076 | 2 | — | 31,683 | |||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
State and municipal securities | — | 1,580 | — | — | 1,580 | |||||||||||||||||
Residential mortgage-backed securities | — | 2,525 | 90 | — | 2,615 | |||||||||||||||||
Commercial mortgage-backed securities | — | 1,343 | 150 | — | 1,493 | |||||||||||||||||
Asset-backed securities | — | 875 | 99 | — | 974 | |||||||||||||||||
Corporate bonds | — | 16,862 | 537 | — | 17,399 | |||||||||||||||||
Collateralized debt obligations | — | 263 | 1,380 | — | 1,643 | |||||||||||||||||
Loans and lending commitments | — | 9,364 | 4,098 | — | 13,462 | |||||||||||||||||
Other debt | — | 5,669 | 21 | — | 5,690 | |||||||||||||||||
Total corporate and other debt | — | 38,481 | 6,375 | — | 44,856 | |||||||||||||||||
Corporate equities(1) | 86,385 | 1,199 | 243 | — | 87,827 | |||||||||||||||||
Derivative and other contracts: | ||||||||||||||||||||||
Interest rate contracts | 2,129 | 585,689 | 2,880 | — | 590,698 | |||||||||||||||||
Credit contracts | — | 46,729 | 2,942 | — | 49,671 | |||||||||||||||||
Foreign exchange contracts | 21 | 55,992 | 129 | — | 56,142 | |||||||||||||||||
Equity contracts | 1,254 | 53,406 | 1,448 | — | 56,108 | |||||||||||||||||
Commodity contracts | 2,886 | 12,197 | 2,264 | — | 17,347 | |||||||||||||||||
Other | — | 36 | — | — | 36 | |||||||||||||||||
Netting(2) | -5,321 | -664,134 | -5,657 | -59,452 | -734,564 | |||||||||||||||||
Total derivative and other contracts | 969 | 89,915 | 4,006 | -59,452 | 35,438 | |||||||||||||||||
Investments: | ||||||||||||||||||||||
Private equity funds | — | 1 | 2,449 | — | 2,450 | |||||||||||||||||
Real estate funds | — | 6 | 1,523 | — | 1,529 | |||||||||||||||||
Hedge funds | — | 373 | 431 | — | 804 | |||||||||||||||||
Principal investments | 29 | 672 | 2,338 | — | 3,039 | |||||||||||||||||
Other | 187 | 71 | 494 | — | 752 | |||||||||||||||||
Total investments | 216 | 1,123 | 7,235 | — | 8,574 | |||||||||||||||||
Physical commodities | — | 3,408 | — | — | 3,408 | |||||||||||||||||
Total trading assets | 152,658 | 162,591 | 17,861 | -59,452 | 273,658 | |||||||||||||||||
Securities available for sale | 19,854 | 27,012 | — | — | 46,866 | |||||||||||||||||
Securities received as collateral | 15,981 | 61 | — | — | 16,042 | |||||||||||||||||
Federal funds sold and securities purchased | ||||||||||||||||||||||
under agreements to resell | — | 868 | — | — | 868 | |||||||||||||||||
Intangible assets(3) | — | — | 8 | — | 8 | |||||||||||||||||
Total assets measured at fair value | $ | 188,493 | $ | 190,532 | $ | 17,869 | $ | -59,452 | $ | 337,442 | ||||||||||||
Liabilities at Fair Value | ||||||||||||||||||||||
Deposits | $ | — | $ | 1,411 | $ | — | $ | — | $ | 1,411 | ||||||||||||
Commercial paper and other short-term borrowings | — | 1,620 | 3 | — | 1,623 | |||||||||||||||||
Trading liabilities: | ||||||||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||||||||
U.S. Treasury securities | 16,432 | — | — | — | 16,432 | |||||||||||||||||
U.S. agency securities | 3,041 | 127 | — | — | 3,168 | |||||||||||||||||
Total U.S. government and agency securities | 19,473 | 127 | — | — | 19,600 | |||||||||||||||||
Other sovereign government obligations | 21,468 | 2,375 | — | — | 23,843 | |||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
State and municipal securities | — | 32 | — | — | 32 | |||||||||||||||||
Residential mortgage-backed securities | — | — | 4 | — | 4 | |||||||||||||||||
Commercial mortgage-backed securities | — | 4 | — | — | 4 | |||||||||||||||||
Corporate bonds | — | 8,191 | 5 | — | 8,196 | |||||||||||||||||
Collateralized debt obligations | — | 6 | — | — | 6 | |||||||||||||||||
Unfunded lending commitments | — | 154 | 4 | — | 158 | |||||||||||||||||
Other debt | — | 277 | 9 | — | 286 | |||||||||||||||||
Total corporate and other debt | — | 8,664 | 22 | — | 8,686 | |||||||||||||||||
Corporate equities(1) | 31,842 | 496 | 10 | — | 32,348 | |||||||||||||||||
Derivative and other contracts: | ||||||||||||||||||||||
Interest rate contracts | 2,527 | 560,796 | 2,570 | — | 565,893 | |||||||||||||||||
Credit contracts | — | 45,344 | 2,232 | — | 47,576 | |||||||||||||||||
Foreign exchange contracts | 9 | 56,668 | 164 | — | 56,841 | |||||||||||||||||
Equity contracts | 893 | 59,261 | 3,079 | — | 63,233 | |||||||||||||||||
Commodity contracts | 3,236 | 12,505 | 1,409 | — | 17,150 | |||||||||||||||||
Other | — | 203 | 1 | — | 204 | |||||||||||||||||
Netting(2) | -5,321 | -664,134 | -5,657 | -37,617 | -712,729 | |||||||||||||||||
Total derivative and other contracts | 1,344 | 70,643 | 3,798 | -37,617 | 38,168 | |||||||||||||||||
Total trading liabilities | 74,127 | 82,305 | 3,830 | -37,617 | 122,645 | |||||||||||||||||
Obligation to return securities received as collateral | 20,829 | 70 | — | — | 20,899 | |||||||||||||||||
Securities sold under agreements to repurchase | — | 404 | 150 | — | 554 | |||||||||||||||||
Other secured financings | — | 5,885 | 260 | — | 6,145 | |||||||||||||||||
Long-term borrowings | — | 34,406 | 2,313 | — | 36,719 | |||||||||||||||||
Total liabilities measured at fair value | $ | 94,956 | $ | 126,101 | $ | 6,556 | $ | -37,617 | $ | 189,996 | ||||||||||||
_____________ | ||||||||||||||||||||||
(1) The Company holds or sells short for trading purposes equity securities issued by entities in diverse industries and of varying size. | ||||||||||||||||||||||
(2) For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Counterparty and Cash Collateral Netting.” For contracts with the same counterparty, counterparty netting among positions classified within the same level is included within that level. For further information on derivative instruments and hedging activities, see Note 11. | ||||||||||||||||||||||
(3) Amount represents mortgage servicing rights (“MSR”) accounted for at fair value. See Note 7 for further information on MSRs. | ||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Counterparty and Cash Collateral Netting | Balance at December 31, 2012 | ||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Assets at Fair Value | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||||||||
U.S. Treasury securities | $ | 24,662 | $ | 14 | $ | — | $ | — | $ | 24,676 | ||||||||||||
U.S. agency securities | 1,451 | 27,888 | — | — | 29,339 | |||||||||||||||||
Total U.S. government and agency securities | 26,113 | 27,902 | — | — | 54,015 | |||||||||||||||||
Other sovereign government obligations | 37,669 | 5,487 | 6 | — | 43,162 | |||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
State and municipal securities | — | 1,558 | — | — | 1,558 | |||||||||||||||||
Residential mortgage-backed securities | — | 1,439 | 45 | — | 1,484 | |||||||||||||||||
Commercial mortgage-backed securities | — | 1,347 | 232 | — | 1,579 | |||||||||||||||||
Asset-backed securities | — | 915 | 109 | — | 1,024 | |||||||||||||||||
Corporate bonds | — | 18,403 | 660 | — | 19,063 | |||||||||||||||||
Collateralized debt obligations | — | 685 | 1,951 | — | 2,636 | |||||||||||||||||
Loans and lending commitments | — | 12,617 | 4,694 | — | 17,311 | |||||||||||||||||
Other debt | — | 4,457 | 45 | — | 4,502 | |||||||||||||||||
Total corporate and other debt | — | 41,421 | 7,736 | — | 49,157 | |||||||||||||||||
Corporate equities(1) | 68,072 | 1,067 | 288 | — | 69,427 | |||||||||||||||||
Derivative and other contracts: | ||||||||||||||||||||||
Interest rate contracts | 446 | 819,581 | 3,774 | — | 823,801 | |||||||||||||||||
Credit contracts | — | 63,234 | 5,033 | — | 68,267 | |||||||||||||||||
Foreign exchange contracts | 34 | 52,729 | 31 | — | 52,794 | |||||||||||||||||
Equity contracts | 760 | 37,074 | 766 | — | 38,600 | |||||||||||||||||
Commodity contracts | 4,082 | 14,256 | 2,308 | — | 20,646 | |||||||||||||||||
Other | — | 143 | — | — | 143 | |||||||||||||||||
Netting(2) | -4,740 | -883,733 | -6,947 | -72,634 | -968,054 | |||||||||||||||||
Total derivative and other contracts | 582 | 103,284 | 4,965 | -72,634 | 36,197 | |||||||||||||||||
Investments: | ||||||||||||||||||||||
Private equity funds | — | — | 2,179 | — | 2,179 | |||||||||||||||||
Real estate funds | — | 6 | 1,370 | — | 1,376 | |||||||||||||||||
Hedge funds | — | 382 | 552 | — | 934 | |||||||||||||||||
Principal investments | 185 | 83 | 2,833 | — | 3,101 | |||||||||||||||||
Other | 199 | 71 | 486 | — | 756 | |||||||||||||||||
Total investments | 384 | 542 | 7,420 | — | 8,346 | |||||||||||||||||
Physical commodities | — | 7,299 | — | — | 7,299 | |||||||||||||||||
Total trading assets | 132,820 | 187,002 | 20,415 | -72,634 | 267,603 | |||||||||||||||||
Securities available for sale | 14,466 | 25,403 | — | — | 39,869 | |||||||||||||||||
Securities received as collateral | 14,232 | 46 | — | — | 14,278 | |||||||||||||||||
Federal funds sold and securities purchased under | ||||||||||||||||||||||
agreements to resell | — | 621 | — | — | 621 | |||||||||||||||||
Intangible assets(3) | — | — | 7 | — | 7 | |||||||||||||||||
Total assets measured at fair value | $ | 161,518 | $ | 213,072 | $ | 20,422 | $ | -72,634 | $ | 322,378 | ||||||||||||
Liabilities at Fair Value | ||||||||||||||||||||||
Deposits | $ | — | $ | 1,485 | $ | — | $ | — | $ | 1,485 | ||||||||||||
Commercial paper and other short-term borrowings | — | 706 | 19 | — | 725 | |||||||||||||||||
Trading liabilities: | ||||||||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||||||||
U.S. Treasury securities | 20,098 | 21 | — | — | 20,119 | |||||||||||||||||
U.S. agency securities | 1,394 | 107 | — | — | 1,501 | |||||||||||||||||
Total U.S. government and agency securities | 21,492 | 128 | — | — | 21,620 | |||||||||||||||||
Other sovereign government obligations | 27,583 | 2,031 | — | — | 29,614 | |||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
State and municipal securities | — | 47 | — | — | 47 | |||||||||||||||||
Residential mortgage-backed securities | — | — | 4 | — | 4 | |||||||||||||||||
Corporate bonds | — | 3,942 | 177 | — | 4,119 | |||||||||||||||||
Collateralized debt obligations | — | 328 | — | — | 328 | |||||||||||||||||
Unfunded lending commitments | — | 305 | 46 | — | 351 | |||||||||||||||||
Other debt | — | 156 | 49 | — | 205 | |||||||||||||||||
Total corporate and other debt | — | 4,778 | 276 | — | 5,054 | |||||||||||||||||
Corporate equities(1) | 25,216 | 1,655 | 5 | — | 26,876 | |||||||||||||||||
Derivative and other contracts: | ||||||||||||||||||||||
Interest rate contracts | 533 | 789,715 | 3,856 | — | 794,104 | |||||||||||||||||
Credit contracts | — | 61,283 | 3,211 | — | 64,494 | |||||||||||||||||
Foreign exchange contracts | 2 | 56,021 | 390 | — | 56,413 | |||||||||||||||||
Equity contracts | 748 | 39,212 | 1,910 | — | 41,870 | |||||||||||||||||
Commodity contracts | 4,530 | 15,702 | 1,599 | — | 21,831 | |||||||||||||||||
Other | — | 54 | 7 | — | 61 | |||||||||||||||||
Netting(2) | -4,740 | -883,733 | -6,947 | -46,395 | -941,815 | |||||||||||||||||
Total derivative and other contracts | 1,073 | 78,254 | 4,026 | -46,395 | 36,958 | |||||||||||||||||
Total trading liabilities | 75,364 | 86,846 | 4,307 | -46,395 | 120,122 | |||||||||||||||||
Obligation to return securities received as collateral | 18,179 | 47 | — | — | 18,226 | |||||||||||||||||
Securities sold under agreements to repurchase | — | 212 | 151 | — | 363 | |||||||||||||||||
Other secured financings | — | 9,060 | 406 | — | 9,466 | |||||||||||||||||
Long-term borrowings | — | 41,255 | 2,789 | — | 44,044 | |||||||||||||||||
Total liabilities measured at fair value | $ | 93,543 | $ | 139,611 | $ | 7,672 | $ | -46,395 | $ | 194,431 | ||||||||||||
_____________ | ||||||||||||||||||||||
(1) The Company holds or sells short for trading purposes equity securities issued by entities in diverse industries and of varying size. | ||||||||||||||||||||||
(2) For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Counterparty and Cash Collateral Netting.” For contracts with the same counterparty, counterparty netting among positions classified within the same level is included within that level. For further information on derivative instruments and hedging activities, see Note 11. | ||||||||||||||||||||||
(3) Amount represents MSRs accounted for at fair value. See Note 7 for further information on MSRs. | ||||||||||||||||||||||
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||||||
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Quarter Ended September 30, 2013. | ||||||||||||||||||||||
Beginning Balance at June 30, 2013 | Total Realized and Unrealized Gains (Losses) (1) | Purchases | Sales | Issuances | Settlements | Net Transfers | Ending Balance at September 30, 2013 | Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at September 30, 2013 (2) | ||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Assets at Fair Value | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
Other sovereign government obligations | $ | 4 | $ | — | $ | 2 | -4 | $ | — | $ | — | $ | — | $ | 2 | $ | — | |||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed securities | 19 | -2 | 72 | -3 | — | — | 4 | 90 | -3 | |||||||||||||
Commercial mortgage-backed securities | 181 | -2 | 39 | -61 | — | — | -7 | 150 | 5 | |||||||||||||
Asset-backed securities | 108 | — | 13 | -23 | — | — | 1 | 99 | — | |||||||||||||
Corporate bonds | 509 | 43 | 76 | -79 | — | — | -12 | 537 | 36 | |||||||||||||
Collateralized debt obligations | 1,333 | 60 | 269 | -206 | — | -55 | -21 | 1,380 | 28 | |||||||||||||
Loans and lending commitments | 5,243 | -72 | 530 | -112 | — | -1,279 | -212 | 4,098 | -111 | |||||||||||||
Other debt | 12 | — | 14 | -5 | — | — | — | 21 | — | |||||||||||||
Total corporate and other debt | 7,405 | 27 | 1,013 | -489 | — | -1,334 | -247 | 6,375 | -45 | |||||||||||||
Corporate equities | 256 | -25 | 38 | -20 | — | — | -6 | 243 | -3 | |||||||||||||
Net derivative and other contracts(3): | ||||||||||||||||||||||
Interest rate contracts | 16 | 262 | 4 | — | -72 | 11 | 89 | 310 | 111 | |||||||||||||
Credit contracts | 685 | -259 | 41 | — | -46 | -146 | 435 | 710 | -448 | |||||||||||||
Foreign exchange contracts | -96 | 6 | — | — | — | 61 | -6 | -35 | 6 | |||||||||||||
Equity contracts | -1,284 | -309 | 102 | — | -190 | 39 | 11 | -1,631 | -429 | |||||||||||||
Commodity contracts | 781 | 45 | 4 | — | -1 | 23 | 3 | 855 | 73 | |||||||||||||
Other | -6 | — | — | — | — | 5 | — | -1 | -2 | |||||||||||||
Total net derivative and | ||||||||||||||||||||||
other contracts | 96 | -255 | 151 | — | -309 | -7 | 532 | 208 | -689 | |||||||||||||
Investments: | ||||||||||||||||||||||
Private equity funds | 2,286 | 213 | 24 | -74 | — | — | — | 2,449 | 163 | |||||||||||||
Real estate funds | 1,422 | 159 | 18 | -76 | — | — | — | 1,523 | 196 | |||||||||||||
Hedge funds | 407 | 5 | 7 | -17 | — | — | 29 | 431 | 5 | |||||||||||||
Principal investments | 2,822 | 84 | 10 | -125 | — | — | -453 | 2,338 | 71 | |||||||||||||
Other | 385 | 16 | 3 | — | — | — | 90 | 494 | 16 | |||||||||||||
Total investments | 7,322 | 477 | 62 | -292 | — | — | -334 | 7,235 | 451 | |||||||||||||
Intangible assets | 9 | — | — | — | — | -1 | — | 8 | — | |||||||||||||
Liabilities at Fair Value | ||||||||||||||||||||||
Commercial paper and other | ||||||||||||||||||||||
short-term borrowings | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3 | $ | 3 | $ | — | ||||
Trading liabilities: | ||||||||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed securities | 4 | — | — | — | — | — | — | 4 | — | |||||||||||||
Corporate bonds | 42 | -15 | -64 | 26 | — | — | -14 | 5 | -17 | |||||||||||||
Unfunded lending commitments | 8 | 4 | — | — | — | — | — | 4 | 4 | |||||||||||||
Other debt | 11 | 1 | -1 | — | — | — | — | 9 | — | |||||||||||||
Total corporate and other debt | 65 | -10 | -65 | 26 | — | — | -14 | 22 | -13 | |||||||||||||
Corporate equities | 16 | -5 | -19 | 8 | — | — | — | 10 | -9 | |||||||||||||
Securities sold under agreements to repurchase | 148 | -2 | — | — | — | — | — | 150 | -2 | |||||||||||||
Other secured financings | 256 | -5 | — | — | — | -1 | — | 260 | -5 | |||||||||||||
Long-term borrowings | 2,705 | -98 | — | — | 188 | -344 | -334 | 2,313 | -89 | |||||||||||||
___________________ | ||||||||||||||||||||||
(1) Total realized and unrealized gains (losses) are primarily included in Trading revenues in the condensed consolidated statements of income except for $477 million related to Trading assets—Investments, which is included in Investments revenues. | ||||||||||||||||||||||
(2) Amounts represent unrealized gains (losses) for the quarter ended September 30, 2013 related to assets and liabilities still outstanding at September 30, 2013. | ||||||||||||||||||||||
(3) Net derivative and other contracts represent Trading assets—Derivative and other contracts net of Trading liabilities—Derivative and other contracts. For further information on derivative instruments and hedging activities, see Note 11. | ||||||||||||||||||||||
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2013. | ||||||||||||||||||||||
Beginning Balance at December 31, 2012 | Total Realized and Unrealized Gains (Losses) (1) | Purchases | Sales | Issuances | Settlements | Net Transfers | Ending Balance at September 30, 2013 | Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at September 30, 2013(2) | ||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Assets at Fair Value | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
Other sovereign government obligations | $ | 6 | $ | — | $ | 3 | $ | -8 | $ | — | $ | — | $ | 1 | $ | 2 | $ | — | ||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed securities | 45 | 29 | 85 | -45 | — | — | -24 | 90 | 8 | |||||||||||||
Commercial mortgage-backed securities | 232 | 6 | 78 | -166 | — | — | — | 150 | 7 | |||||||||||||
Asset-backed securities | 109 | 1 | 4 | -15 | — | — | — | 99 | — | |||||||||||||
Corporate bonds | 660 | 64 | 327 | -462 | — | -12 | -40 | 537 | 15 | |||||||||||||
Collateralized debt obligations | 1,951 | 276 | 612 | -1,405 | — | -53 | -1 | 1,380 | 118 | |||||||||||||
Loans and lending commitments | 4,694 | -308 | 1,607 | -316 | — | -1,838 | 259 | 4,098 | -306 | |||||||||||||
Other debt | 45 | -3 | 15 | -36 | — | — | — | 21 | 1 | |||||||||||||
Total corporate and other debt | 7,736 | 65 | 2,728 | -2,445 | — | -1,903 | 194 | 6,375 | -157 | |||||||||||||
Corporate equities | 288 | -36 | 142 | -164 | — | — | 13 | 243 | -4 | |||||||||||||
Net derivative and other contracts(3): | ||||||||||||||||||||||
Interest rate contracts | -82 | 237 | 10 | — | -86 | 185 | 46 | 310 | 157 | |||||||||||||
Credit contracts | 1,822 | -1,133 | 184 | — | -278 | -369 | 484 | 710 | -1,187 | |||||||||||||
Foreign exchange contracts | -359 | 117 | — | — | — | 215 | -8 | -35 | 106 | |||||||||||||
Equity contracts | -1,144 | -293 | 123 | -1 | -232 | -156 | 72 | -1,631 | -369 | |||||||||||||
Commodity contracts | 709 | 90 | 40 | — | -19 | 36 | -1 | 855 | 124 | |||||||||||||
Other | -7 | -4 | — | — | — | 10 | — | -1 | -6 | |||||||||||||
Total net derivative and | ||||||||||||||||||||||
other contracts | 939 | -986 | 357 | -1 | -615 | -79 | 593 | 208 | -1,175 | |||||||||||||
Investments: | ||||||||||||||||||||||
Private equity funds | 2,179 | 432 | 96 | -258 | — | — | — | 2,449 | 409 | |||||||||||||
Real estate funds | 1,370 | 287 | 61 | -195 | — | — | — | 1,523 | 402 | |||||||||||||
Hedge funds | 552 | 5 | 46 | -154 | — | — | -18 | 431 | 6 | |||||||||||||
Principal investments | 2,833 | 96 | 106 | -286 | — | — | -411 | 2,338 | 63 | |||||||||||||
Other | 486 | 36 | 3 | -30 | — | — | -1 | 494 | 37 | |||||||||||||
Total investments | 7,420 | 856 | 312 | -923 | — | — | -430 | 7,235 | 917 | |||||||||||||
Intangible assets | 7 | 7 | — | — | — | -6 | — | 8 | 3 | |||||||||||||
Liabilities at Fair Value | ||||||||||||||||||||||
Commercial paper and other | ||||||||||||||||||||||
short-term borrowings | $ | 19 | $ | — | $ | — | $ | — | $ | — | $ | -1 | $ | -15 | $ | 3 | $ | — | ||||
Trading liabilities: | ||||||||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed securities | 4 | — | — | — | — | — | — | 4 | — | |||||||||||||
Corporate bonds | 177 | -5 | -154 | 76 | — | — | -99 | 5 | -5 | |||||||||||||
Unfunded lending commitments | 46 | 42 | — | — | — | — | — | 4 | 42 | |||||||||||||
Other debt | 49 | 13 | -31 | 2 | — | — | 2 | 9 | 6 | |||||||||||||
Total corporate and other debt | 276 | 50 | -185 | 78 | — | — | -97 | 22 | 43 | |||||||||||||
Corporate equities | 5 | -1 | -19 | 24 | — | — | -1 | 10 | -10 | |||||||||||||
Securities sold under agreements to repurchase | 151 | 1 | — | — | — | — | — | 150 | 1 | |||||||||||||
Other secured financings | 406 | 23 | — | — | 13 | -136 | — | 260 | 16 | |||||||||||||
Long-term borrowings | 2,789 | -87 | — | — | 875 | -468 | -970 | 2,313 | -89 | |||||||||||||
___________ | ||||||||||||||||||||||
(1) Total realized and unrealized gains (losses) are primarily included in Trading revenues in the condensed consolidated statements of income except for $856 million related to Trading assets—Investments, which is included in Investments revenues. | ||||||||||||||||||||||
(2) Amounts represent unrealized gains (losses) for the nine months ended September 30, 2013 related to assets and liabilities still outstanding at September 30, 2013. | ||||||||||||||||||||||
(3) Net derivative and other contracts represent Trading assets—Derivative and other contracts net of Trading liabilities—Derivative and other contracts. For further information on derivative instruments and hedging activities, see Note 11. | ||||||||||||||||||||||
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for Quarter Ended September 30, 2012. | ||||||||||||||||||||||
Beginning Balance at June 30, 2012 | Total Realized and Unrealized Gains (Losses) (1) | Purchases | Sales | Issuances | Settlements | Net Transfers | Ending Balance at September 30, 2012 | Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at September 30, 2012(2) | ||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Assets at Fair Value | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
Other sovereign government obligations | $ | 1 | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | $ | 3 | $ | — | ||||
Corporate and other debt: | ||||||||||||||||||||||
State and municipal securities | 3 | 1 | — | -2 | — | — | — | 2 | — | |||||||||||||
Residential mortgage-backed securities | 24 | 1 | 1 | -4 | — | — | -2 | 20 | -1 | |||||||||||||
Commercial mortgage-backed securities | 256 | 13 | 7 | -54 | — | -99 | 3 | 126 | 8 | |||||||||||||
Asset-backed securities | 9 | 1 | — | — | — | — | — | 10 | 1 | |||||||||||||
Corporate bonds | 745 | 50 | 86 | -157 | — | — | 33 | 757 | 51 | |||||||||||||
Collateralized debt obligations | 1,457 | 92 | 569 | -200 | — | — | 113 | 2,031 | 127 | |||||||||||||
Loans and lending commitments | 7,794 | 183 | 1,098 | -366 | — | -674 | -210 | 7,825 | 148 | |||||||||||||
Other debt | 13 | — | 12 | -2 | — | — | -12 | 11 | — | |||||||||||||
Total corporate and other debt | 10,301 | 341 | 1,773 | -785 | — | -773 | -75 | 10,782 | 334 | |||||||||||||
Corporate equities | 482 | 9 | 48 | -95 | — | — | -73 | 371 | 9 | |||||||||||||
Net derivative and other contracts(3): | ||||||||||||||||||||||
Interest rate contracts | -172 | -282 | 5 | — | -10 | 187 | 173 | -99 | -76 | |||||||||||||
Credit contracts | 3,842 | -791 | 22 | — | -17 | -266 | -167 | 2,623 | -870 | |||||||||||||
Foreign exchange contracts | -224 | -101 | — | — | — | -12 | -74 | -411 | -102 | |||||||||||||
Equity contracts | -1,173 | -2 | 126 | -12 | -57 | 32 | -249 | -1,335 | -8 | |||||||||||||
Commodity contracts | 937 | -84 | 11 | — | -3 | -5 | -88 | 768 | -28 | |||||||||||||
Other | -27 | — | — | — | — | 6 | 18 | -3 | — | |||||||||||||
Total net derivative and other contracts | 3,183 | -1,260 | 164 | -12 | -87 | -58 | -387 | 1,543 | -1,084 | |||||||||||||
Investments: | ||||||||||||||||||||||
Private equity funds | 2,005 | 162 | 127 | -48 | — | — | — | 2,246 | 153 | |||||||||||||
Real estate funds | 1,326 | 44 | 20 | -36 | — | — | — | 1,354 | 30 | |||||||||||||
Hedge funds | 533 | 19 | 42 | -46 | — | — | 16 | 564 | 14 | |||||||||||||
Principal investments | 3,047 | 1 | 33 | -50 | — | — | -5 | 3,026 | 3 | |||||||||||||
Other | 543 | 4 | 11 | -9 | — | — | -73 | 476 | 5 | |||||||||||||
Total investments | 7,454 | 230 | 233 | -189 | — | — | -62 | 7,666 | 205 | |||||||||||||
Securities received as collateral | — | — | — | — | — | — | 4 | 4 | — | |||||||||||||
Intangible assets | 8 | — | — | — | — | -2 | — | 6 | — | |||||||||||||
Liabilities at Fair Value | ||||||||||||||||||||||
Commercial paper and other short-term borrowings | $ | 2 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 12 | $ | 14 | $ | — | ||||
Trading liabilities: | ||||||||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed securities | 4 | — | — | — | — | — | — | 4 | — | |||||||||||||
Corporate bonds | 127 | -26 | -116 | 56 | — | — | -2 | 91 | -45 | |||||||||||||
Collateralized debt obligations | 1 | — | — | 1 | — | — | -1 | 1 | — | |||||||||||||
Unfunded lending commitments | 51 | -11 | — | — | — | — | — | 62 | -11 | |||||||||||||
Other debt | 63 | 2 | -6 | — | — | — | — | 55 | 2 | |||||||||||||
Total corporate and other debt | 246 | -35 | -122 | 57 | — | — | -3 | 213 | -54 | |||||||||||||
Corporate equities | 47 | 26 | -21 | — | — | — | 12 | 12 | -3 | |||||||||||||
Obligation to return securities received | ||||||||||||||||||||||
as collateral | — | — | — | — | — | — | 20 | 20 | — | |||||||||||||
Securities sold under agreements to repurchase | 185 | -13 | — | — | — | — | — | 198 | -13 | |||||||||||||
Other secured financings | 470 | -22 | — | — | — | -76 | — | 416 | -22 | |||||||||||||
Long-term borrowings | 2,210 | -215 | — | — | 259 | -223 | -7 | 2,454 | -231 | |||||||||||||
___________ | ||||||||||||||||||||||
(1) Total realized and unrealized gains (losses) are primarily included in Trading revenues in the condensed consolidated statements of income except for $230 million related to Trading assets—Investments, which is included in Investments revenues. | ||||||||||||||||||||||
(2) Amounts represent unrealized gains (losses) for the quarter ended September 30, 2012 related to assets and liabilities still outstanding at September 30, 2012. | ||||||||||||||||||||||
(3) Net derivative and other contracts represent Trading assets—Derivative and other contracts net of Trading liabilities—Derivative and other contracts. For further information on derivative instruments and hedging activities, see Note 11. | ||||||||||||||||||||||
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2012. | ||||||||||||||||||||||
Beginning Balance at December 31, 2011 | Total Realized and Unrealized Gains (Losses) (1) | Purchases | Sales | Issuances | Settlements | Net Transfers | Ending Balance at September 30, 2012 | Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at September 30, 2012(2) | ||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Assets at Fair Value | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
U.S. agency securities | $ | 8 | $ | — | $ | — | $ | -7 | $ | — | $ | — | $ | -1 | $ | — | $ | — | ||||
Other sovereign government obligations | 119 | — | 2 | -118 | — | — | — | 3 | — | |||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
State and municipal securities | — | 2 | — | -3 | — | — | 3 | 2 | — | |||||||||||||
Residential mortgage-backed securities | 494 | -24 | 4 | -267 | — | — | -187 | 20 | -36 | |||||||||||||
Commercial mortgage-backed securities | 134 | 36 | 123 | -65 | — | -100 | -2 | 126 | 28 | |||||||||||||
Asset-backed securities | 31 | 1 | 9 | -31 | — | — | — | 10 | — | |||||||||||||
Corporate bonds | 675 | 8 | 367 | -314 | — | — | 21 | 757 | -1 | |||||||||||||
Collateralized debt obligations | 980 | 193 | 1,215 | -321 | — | — | -36 | 2,031 | 147 | |||||||||||||
Loans and lending commitments | 9,590 | 54 | 2,592 | -2,205 | — | -2,019 | -187 | 7,825 | -144 | |||||||||||||
Other debt | 128 | 15 | 8 | -140 | — | — | — | 11 | 9 | |||||||||||||
Total corporate and other debt | 12,032 | 285 | 4,318 | -3,346 | — | -2,119 | -388 | 10,782 | 3 | |||||||||||||
Corporate equities | 417 | -2 | 153 | -184 | — | — | -13 | 371 | 3 | |||||||||||||
Net derivative and other contracts(3): | ||||||||||||||||||||||
Interest rate contracts | 420 | -338 | 98 | — | -15 | 7 | -271 | -99 | -85 | |||||||||||||
Credit contracts | 5,814 | -1,733 | 46 | — | -421 | -533 | -550 | 2,623 | -2,048 | |||||||||||||
Foreign exchange contracts | 43 | -163 | — | — | — | -142 | -149 | -411 | -221 | |||||||||||||
Equity contracts | -1,234 | 156 | 272 | -5 | -122 | -205 | -197 | -1,335 | 143 | |||||||||||||
Commodity contracts | 570 | 152 | 17 | — | -8 | 29 | 8 | 768 | 145 | |||||||||||||
Other | -1,090 | 59 | — | — | — | 238 | 790 | -3 | 56 | |||||||||||||
Total net derivative and other contracts | 4,523 | -1,867 | 433 | -5 | -566 | -606 | -369 | 1,543 | -2,010 | |||||||||||||
Investments: | ||||||||||||||||||||||
Private equity funds | 1,936 | 176 | 271 | -138 | — | — | 1 | 2,246 | 134 | |||||||||||||
Real estate funds | 1,213 | 107 | 137 | -104 | — | — | 1 | 1,354 | 179 | |||||||||||||
Hedge funds | 696 | 26 | 61 | -135 | — | — | -84 | 564 | 19 | |||||||||||||
Principal investments | 2,937 | 25 | 267 | -199 | — | — | -4 | 3,026 | -6 | |||||||||||||
Other | 501 | -16 | 40 | -10 | — | — | -39 | 476 | -15 | |||||||||||||
Total investments | 7,283 | 318 | 776 | -586 | — | — | -125 | 7,666 | 311 | |||||||||||||
Physical commodities | 46 | — | — | — | — | -46 | — | — | — | |||||||||||||
Securities received as collateral | — | — | — | — | — | — | 4 | 4 | — | |||||||||||||
Intangible assets | 133 | -40 | — | -83 | — | -4 | — | 6 | -6 | |||||||||||||
Liabilities at Fair Value | ||||||||||||||||||||||
Commercial paper and other short-term borrowings | $ | 2 | $ | -2 | $ | — | $ | — | $ | — | $ | -2 | $ | 12 | $ | 14 | $ | -1 | ||||
Trading liabilities: | ||||||||||||||||||||||
Other sovereign government obligations | 8 | — | -8 | — | — | — | — | — | — | |||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed securities | 355 | -4 | -355 | — | — | — | — | 4 | -4 | |||||||||||||
Corporate bonds | 219 | -44 | -254 | 119 | — | — | -37 | 91 | -53 | |||||||||||||
Collateralized debt obligations | — | — | — | 1 | — | — | — | 1 | — | |||||||||||||
Unfunded lending commitments | 85 | 23 | — | — | — | — | — | 62 | 23 | |||||||||||||
Other debt | 73 | 3 | — | 40 | — | -55 | — | 55 | 5 | |||||||||||||
Total corporate and other debt | 732 | -22 | -609 | 160 | — | -55 | -37 | 213 | -29 | |||||||||||||
Corporate equities | 1 | 2 | -22 | 15 | — | — | 20 | 12 | -2 | |||||||||||||
Obligation to return securities received as collateral | — | — | — | — | — | — | 20 | 20 | — | |||||||||||||
Securities sold under agreements to repurchase | 340 | -10 | — | — | — | — | -152 | 198 | -10 | |||||||||||||
Other secured financings | 570 | -33 | — | — | 55 | -220 | -22 | 416 | -33 | |||||||||||||
Long-term borrowings | 1,603 | -444 | — | — | 585 | -181 | 3 | 2,454 | -429 | |||||||||||||
____________ | ||||||||||||||||||||||
(1) Total realized and unrealized gains (losses) are primarily included in Trading revenues in the condensed consolidated statements of income except for $318 million related to Trading assets—Investments, which is included in Investments revenues. | ||||||||||||||||||||||
(2) Amounts represent unrealized gains (losses) for the nine months ended September 30, 2012 related to assets and liabilities still outstanding at September 30, 2012. | ||||||||||||||||||||||
(3) Net derivative and other contracts represent Trading assets—Derivative and other contracts net of Trading liabilities—Derivative and other contracts. For further information on derivative instruments and hedging activities, see Note 11. | ||||||||||||||||||||||
Quantitative Information about and Sensitivity of Significant Unobservable Inputs used in Recurring Level 3 Fair Value Measurements | ' | |||||||||||||||||||||
Balance at | ||||||||||||||||||||||
September 30, | ||||||||||||||||||||||
2013 | ||||||||||||||||||||||
(dollars | Significant Unobservable Input(s) / | |||||||||||||||||||||
in | Valuation | Sensitivity of the Fair Value to Changes | ||||||||||||||||||||
millions) | Technique(s) | in the Unobservable Inputs | Range(1) | Averages(2) | ||||||||||||||||||
Assets | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Residential mortgage-backed | ||||||||||||||||||||||
securities | $ | 90 | Comparable pricing | Comparable bond price / (A) | 40 to 100 points | 89 points | ||||||||||||||||
Commercial mortgage-backed | ||||||||||||||||||||||
securities | 150 | Comparable pricing | Comparable bond price / (A) | 40 to 96 points | 72 points | |||||||||||||||||
Asset-backed securities | 99 | Discounted cash flow | Discount rate / (C) | 32% | 32% | |||||||||||||||||
Corporate bonds | 537 | Comparable pricing | Comparable bond price / (A) | 2 to 151 points | 68 points | |||||||||||||||||
Collateralized debt obligations | 1,380 | Comparable pricing(6) | Comparable bond price / (A) | 18 to 97 points | 68 points | |||||||||||||||||
Correlation model | Credit correlation / (B) | 28 to 50 % | 45% | |||||||||||||||||||
Loans and lending commitments | 4,098 | Corporate loan model | Credit spread / (C) | 42 to 905 basis points | 268 basis points | |||||||||||||||||
Margin loan model | Credit spread / (C)(D) | 16 to 300 basis points | 197 basis points | |||||||||||||||||||
Volatility skew / (C)(D) | -2% | -2% | ||||||||||||||||||||
Comparable bond price / (A)(D) | 80 to 120 points | 100 points | ||||||||||||||||||||
Option model | At the money volatility / (A) | 31% | 31% | |||||||||||||||||||
Comparable pricing(6) | Comparable loan price / (A) | 0 to 158 points | 76 points | |||||||||||||||||||
Corporate equities(3) | 243 | Net asset value(6) | Discount to net asset value / (C) | 0 to 93 % | 49% | |||||||||||||||||
Comparable pricing | Comparable equity price / (A) | 0 to 100 % | 50% | |||||||||||||||||||
Comparable pricing | Comparable price / (A) | 0 to 100 points | 44 points | |||||||||||||||||||
Market approach | EBITDA multiple / (A) | 5 to 9 times | 7 times | |||||||||||||||||||
Net derivative and other contracts: | ||||||||||||||||||||||
Interest rate contracts | 310 | Option model | Interest rate volatility concentration | |||||||||||||||||||
liquidity multiple / (C)(D) | 0 to 7 times | 2 times | ||||||||||||||||||||
Comparable bond price / (A)(D) | 5 to 99 points | 52 points / 52 points (4) | ||||||||||||||||||||
Interest rate - Foreign exchange | ||||||||||||||||||||||
correlation / (A)(D) | 2 to 63 % | 37% / 44% (4) | ||||||||||||||||||||
Interest rate volatility skew / (A)(D) | 24 to 51 % | 43% / 35% (4) | ||||||||||||||||||||
Interest rate quanto correlation / (A)(D) | -22 to 33 % | -4% / -17% (4) | ||||||||||||||||||||
Interest rate curve correlation / (A)(D) | 35 to 92 % | 72% / 79% (4) | ||||||||||||||||||||
Inflation volatility / (A)(D) | 77 to 83 % | 80% / 79% (4) | ||||||||||||||||||||
Credit contracts | 710 | Comparable pricing | Cash synthetic basis / (C)(D) | 2 to 5 points | 4 points | |||||||||||||||||
Comparable bond price / (C)(D) | 0 to 80 points | 24 points | ||||||||||||||||||||
Correlation model(6) | Credit correlation / (B) | 27 to 91 % | 52% | |||||||||||||||||||
Foreign exchange contracts(5) | -35 | Option model | Comparable bond price / (A)(D) | 5 to 99 points | 52 points / 52 points (4) | |||||||||||||||||
Interest rate quanto correlation / (A)(D) | -22 to 33 % | -4% / -17% (4) | ||||||||||||||||||||
Interest rate curve correlation / (A)(D) | 35 to 92 % | 72% / 79% (4) | ||||||||||||||||||||
Interest rate - Foreign exchange correlation | ||||||||||||||||||||||
/ (A)(D) | 2 to 63 % | 37% / 44% (4) | ||||||||||||||||||||
Interest rate volatility skew / (A)(D) | 24 to 51 % | 43% / 35% (4) | ||||||||||||||||||||
Interest rate curve / (A)(D) | 1% | 1% / 1% (4) | ||||||||||||||||||||
Equity contracts(5) | -1,631 | Option model | At the money volatility / (A)(D) | 18 to 44 % | 31% | |||||||||||||||||
Volatility skew / (C)(D) | -2 to 0 % | -1% | ||||||||||||||||||||
Equity - Equity correlation / (C)(D) | 40 to 99 % | 71% | ||||||||||||||||||||
Equity - Foreign exchange correlation / (C)(D) | -50 to -11 % | -22% | ||||||||||||||||||||
Equity - Interest rate correlation / (C)(D) | 3 to 70 % | 40% / 36% (4) | ||||||||||||||||||||
Commodity contracts | 855 | Option model | Forward power price / (C)(D) | $10 to $108 per | $38 per | |||||||||||||||||
Megawatt hour | Megawatt hour | |||||||||||||||||||||
Commodity volatility / (A)(D) | 11 to 28 % | 13% | ||||||||||||||||||||
Cross commodity correlation / (C)(D) | 43 to 98 % | 97% | ||||||||||||||||||||
Investments(3): | ||||||||||||||||||||||
Principal investments | 2,338 | Discounted cash flow | Implied weighted average cost of capital / (C)(D) | 9 to 12 % | 11% | |||||||||||||||||
Exit multiple / (A)(D) | 7 to 9 times | 8 times | ||||||||||||||||||||
Discounted cash flow(6) | Capitalization rate / (C)(D) | 6 to 11 % | 7% | |||||||||||||||||||
Equity discount rate / (C)(D) | 10 to 30 % | 22% | ||||||||||||||||||||
Market approach | EBITDA multiple / (A) | 4 to 16 times | 9 times | |||||||||||||||||||
Other | 494 | Discounted cash flow | Implied weighted average cost of capital / (C)(D) | 10% | 10% | |||||||||||||||||
Exit multiple / (A)(D) | 7 times | 7 times | ||||||||||||||||||||
Market approach(6) | EBITDA multiple / (A) | 8 to 9 times | 9 times | |||||||||||||||||||
Liabilities | ||||||||||||||||||||||
Trading liabilities: | ||||||||||||||||||||||
Securities sold under agreements | ||||||||||||||||||||||
to repurchase | $ | 150 | Discounted cash flow | Funding spread / (A) | 134 to 136 basis points | 135 basis points | ||||||||||||||||
Other secured financings | 260 | Comparable pricing(6) | Comparable bond price / (A) | 99 to 102 points | 99 points | |||||||||||||||||
Discounted cash flow | Funding spread / (A) | 136 basis points | 136 basis points | |||||||||||||||||||
Long-term borrowings | 2,313 | Option model | At the money volatility / (A)(D) | 22 to 33 % | 27% | |||||||||||||||||
Volatility skew / (A)(D) | -1 to 0 % | 0% | ||||||||||||||||||||
Equity - Equity correlation / (A)(D) | 50 to 97 % | 68% | ||||||||||||||||||||
Equity - Foreign exchange correlation / (A)(D) | -70 to 17 % | -17% | ||||||||||||||||||||
___________________ | ||||||||||||||||||||||
EBITDA - Earnings before interest, taxes, depreciation and amortization | ||||||||||||||||||||||
(1) The ranges of significant unobservable inputs are represented in points, percentages, basis points, times or megawatt hours. Points are a percentage of par; for example, 96 points would be 96% of par. A basis point equals 1/100th of 1%; for example, 905 basis points would equal 9.05%. | ||||||||||||||||||||||
(2) Amounts represent weighted averages except where simple averages and the median of the inputs are provided (see footnote 4 below). Weighted averages are calculated by weighting each input by the fair value of the respective financial instruments except for long-term borrowings and derivative instruments where inputs are weighted by risk. | ||||||||||||||||||||||
(3) Investments in funds measured using an unadjusted NAV are excluded. | ||||||||||||||||||||||
(4) The data structure of the significant unobservable inputs used in valuing Interest rate contracts, Foreign exchange contracts and certain Equity contracts may be in a multi-dimensional form, such as a curve or surface, with risk distributed across the structure. Therefore, a simple average and median, together with the range of data inputs, may be more appropriate measurements than a single point weighted average. | ||||||||||||||||||||||
(5) Includes derivative contracts with multiple risks (i.e., hybrid products). | ||||||||||||||||||||||
(6) This is the predominant valuation technique for this major asset or liability class. | ||||||||||||||||||||||
Balance at | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2012 | ||||||||||||||||||||||
(dollars | Significant Unobservable Input(s) / | |||||||||||||||||||||
in | Valuation | Sensitivity of the Fair Value to Changes | Weighted | |||||||||||||||||||
millions) | Technique(s) | in the Unobservable Inputs | Range(1) | Average | ||||||||||||||||||
Assets | ||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Commercial mortgage-backed | ||||||||||||||||||||||
securities | $ | 232 | Comparable pricing | Comparable bond price / (A) | 46 to 100 points | 76 points | ||||||||||||||||
Asset-backed securities | 109 | Discounted cash flow | Discount rate / (C) | 21% | 21% | |||||||||||||||||
Corporate bonds | 660 | Comparable pricing | Comparable bond price / (A) | 0 to 143 points | 24 points | |||||||||||||||||
Collateralized debt obligations | 1,951 | Comparable pricing | Comparable bond price / (A) | 15 to 88 points | 59 points | |||||||||||||||||
Correlation model | Credit correlation / (B) | 15 to 45 % | 40% | |||||||||||||||||||
Loans and lending commitments | 4,694 | Corporate loan model | Credit spread / (C) | 17 to 1,004 basis points | 281 basis points | |||||||||||||||||
Comparable pricing | Comparable bond price / (A) | 80 to 120 points | 104 points | |||||||||||||||||||
Comparable pricing | Comparable loan price / (A) | 55 to 100 points | 88 points | |||||||||||||||||||
Corporate equities(2) | 288 | Net asset value | Discount to net asset value / (C) | 0 to 37 % | 8% | |||||||||||||||||
Comparable pricing | Discount to comparable equity price / (C) | 0 to 27 points | 14 points | |||||||||||||||||||
Market approach | EBITDA multiple / (A) | 6 times | 6 times | |||||||||||||||||||
Net derivative and other contracts: | ||||||||||||||||||||||
Interest rate contracts | -82 | Option model | Interest rate volatility concentration | See (3) | ||||||||||||||||||
liquidity multiple / (C)(D) | 0 to 8 times | |||||||||||||||||||||
Comparable bond price / (A)(D) | 5 to 98 points | |||||||||||||||||||||
Interest rate - Foreign exchange | ||||||||||||||||||||||
correlation / (A)(D) | 2 to 63 % | |||||||||||||||||||||
Interest rate volatility skew / (A)(D) | 9 to 95 % | |||||||||||||||||||||
Interest rate quanto correlation / (A)(D) | -53 to 33 % | |||||||||||||||||||||
Interest rate curve correlation / (A)(D) | 48 to 99 % | |||||||||||||||||||||
Inflation volatility / (A)(D) | 49 to 100 % | |||||||||||||||||||||
Discounted cash flow | Forward commercial paper rate-LIBOR basis / (A) | -18 to 95 basis points | ||||||||||||||||||||
Credit contracts | 1,822 | Comparable pricing | Cash synthetic basis / (C) | 2 to 14 points | See (4) | |||||||||||||||||
Comparable bond price / (C) | 0 to 80 points | |||||||||||||||||||||
Correlation model | Credit correlation / (B) | 14 to 94 % | ||||||||||||||||||||
Foreign exchange contracts(5) | -359 | Option model | Comparable bond price / (A)(D) | 5 to 98 points | See (6) | |||||||||||||||||
Interest rate quanto correlation / (A)(D) | -53 to 33 % | |||||||||||||||||||||
Interest rate - Credit spread correlation / (A)(D) | -59 to 65 % | |||||||||||||||||||||
Interest rate - Foreign exchange correlation | ||||||||||||||||||||||
/ (A)(D) | 2 to 63 % | |||||||||||||||||||||
Interest rate volatility skew / (A)(D) | 9 to 95 % | |||||||||||||||||||||
Equity contracts(5) | -1,144 | Option model | At the money volatility / (C)(D) | 7 to 24 % | See (7) | |||||||||||||||||
Volatility skew / (C)(D) | -2 to 0 % | |||||||||||||||||||||
Equity - Equity correlation / (C)(D) | 40 to 96 % | |||||||||||||||||||||
Equity - Foreign exchange correlation / (C)(D) | -70 to 38 % | |||||||||||||||||||||
Equity - Interest rate correlation / (C)(D) | 18 to 65 % | |||||||||||||||||||||
Commodity contracts | 709 | Option model | Forward power price / (C)(D) | $28 to $84 per | ||||||||||||||||||
Megawatt hour | ||||||||||||||||||||||
Commodity volatility / (A)(D) | 17 to 29 % | |||||||||||||||||||||
Cross commodity correlation / (C)(D) | 43 to 97 % | |||||||||||||||||||||
Investments(2): | ||||||||||||||||||||||
Principal investments | 2,833 | Discounted cash flow | Implied weighted average cost of capital / (C)(D) | 8 to 15 % | 9% | |||||||||||||||||
Exit multiple / (A)(D) | 5 to 10 times | 9 times | ||||||||||||||||||||
Discounted cash flow | Capitalization rate / (C)(D) | 6 to 10 % | 7% | |||||||||||||||||||
Equity discount rate / (C)(D) | 15 to 35 % | 23% | ||||||||||||||||||||
Market approach | EBITDA multiple / (A) | 3 to 17 times | 10 times | |||||||||||||||||||
Other | 486 | Discounted cash flow | Implied weighted average cost of capital / (C)(D) | 11% | 11% | |||||||||||||||||
Exit multiple / (A)(D) | 6 times | 6 times | ||||||||||||||||||||
Market approach | EBITDA multiple / (A) | 6 to 8 times | 7 times | |||||||||||||||||||
Liabilities | ||||||||||||||||||||||
Trading liabilities: | ||||||||||||||||||||||
Corporate and other debt: | ||||||||||||||||||||||
Corporate bonds | $ | 177 | Comparable pricing | Comparable bond price / (A) | 0 to 150 points | 50 points | ||||||||||||||||
Securities sold under agreements | ||||||||||||||||||||||
to repurchase | 151 | Discounted cash flow | Funding spread / (A) | 110 to 184 basis points | 166 basis points | |||||||||||||||||
Other secured financings | 406 | Comparable pricing | Comparable bond price / (A) | 55 to 139 points | 102 points | |||||||||||||||||
Discounted cash flow | Funding spread / (A) | 183 to 186 basis points | 184 basis points | |||||||||||||||||||
Long-term borrowings | 2,789 | Option model | At the money volatility / (A)(D) | 20 to 24 % | 24% | |||||||||||||||||
Volatility skew / (A)(D) | -1 to 0 % | 0% | ||||||||||||||||||||
Equity - Equity correlation / (A)(D) | 50 to 90 % | 77% | ||||||||||||||||||||
Equity - Foreign exchange correlation / (A)(D) | -70 to 36 % | -15% | ||||||||||||||||||||
________________ | ||||||||||||||||||||||
(1) The ranges of significant unobservable inputs are represented in points, percentages, basis points, times or megawatt hours. Points are a percentage of par; for example, 100 points would be 100% of par. A basis point equals 1/100th of 1%; for example, 1,004 basis points would equal 10.04%. | ||||||||||||||||||||||
(2) Investments in funds measured using an unadjusted NAV are excluded. | ||||||||||||||||||||||
(3) See Note 4 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K for a qualitative discussion of the wide unobservable input ranges for comparable bond prices, interest rate volatility skew, interest rate quanto correlation and forward commercial paper rate–LIBOR basis. | ||||||||||||||||||||||
(4) See Note 4 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K for a qualitative discussion of the wide unobservable input ranges for comparable bond prices and credit correlation. | ||||||||||||||||||||||
(5) Includes derivative contracts with multiple risks (i.e., hybrid products). | ||||||||||||||||||||||
(6) See Note 4 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K for a qualitative discussion of the wide unobservable input ranges for comparable bond prices, interest rate quanto correlation, interest rate-credit spread correlation and interest rate volatility skew. | ||||||||||||||||||||||
(7) See Note 4 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K for a qualitative discussion of the wide unobservable input range for equity-foreign exchange correlation. | ||||||||||||||||||||||
Fair Value of Investments that Calculate Net Asset Value | ' | |||||||||||||||||||||
At September 30, 2013 | At December 31, 2012 | |||||||||||||||||||||
Unfunded | Unfunded | |||||||||||||||||||||
Fair Value | Commitment | Fair Value | Commitment | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Private equity funds | $ | 2,450 | $ | 577 | $ | 2,179 | $ | 644 | ||||||||||||||
Real estate funds | 1,529 | 149 | 1,376 | 221 | ||||||||||||||||||
Hedge funds(1): | ||||||||||||||||||||||
Long-short equity hedge funds | 466 | ─ | 475 | ─ | ||||||||||||||||||
Fixed income/credit-related hedge funds | 71 | ─ | 86 | ─ | ||||||||||||||||||
Event-driven hedge funds | 39 | ─ | 52 | ─ | ||||||||||||||||||
Multi-strategy hedge funds | 228 | 3 | 321 | 3 | ||||||||||||||||||
Total | $ | 4,783 | $ | 729 | $ | 4,489 | $ | 868 | ||||||||||||||
(1) Fixed income/credit-related hedge funds, event-driven hedge funds, and multi-strategy hedge funds are redeemable at least on a six-month period basis primarily with a notice period of 90 days or less. At September 30, 2013, approximately 40% of the fair value amount of long-short equity hedge funds is redeemable at least quarterly, 40% is redeemable every six months and 20% of these funds have a redemption frequency of greater than six months. The notice period for long-short equity hedge funds at September 30, 2013 is primarily greater than six months. At December 31, 2012, approximately 36% of the fair value amount of long-short equity hedge funds is redeemable at least quarterly, 38% is redeemable every six months and 26% of these funds have a redemption frequency of greater than six months. The notice period for long-short equity hedge funds at December 31, 2012 is primarily greater than six months. | ||||||||||||||||||||||
Net Gains (Losses) Due to Changes in Fair Value for Items Measured at Fair Value Pursuant to the Fair Value Option Election | ' | |||||||||||||||||||||
Interest | Gains (Losses) | |||||||||||||||||||||
Income | Included in | |||||||||||||||||||||
Trading | (Expense) | Net Revenues | ||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||
Federal funds sold and securities purchased under | ||||||||||||||||||||||
agreements to resell | $ | 1 | $ | 3 | $ | 4 | ||||||||||||||||
Deposits | 14 | -17 | -3 | |||||||||||||||||||
Commercial paper and other short-term borrowings(1) | -62 | -3 | -65 | |||||||||||||||||||
Securities sold under agreements to repurchase | -3 | -2 | -5 | |||||||||||||||||||
Long-term borrowings(1) | -154 | -224 | -378 | |||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Federal funds sold and securities purchased under | ||||||||||||||||||||||
agreements to resell | $ | ─ | $ | 6 | $ | 6 | ||||||||||||||||
Deposits | 44 | -50 | -6 | |||||||||||||||||||
Commercial paper and other short-term borrowings(1) | 118 | -5 | 113 | |||||||||||||||||||
Securities sold under agreements to repurchase | 2 | -5 | -3 | |||||||||||||||||||
Long-term borrowings(1) | 1,053 | -752 | 301 | |||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||
Federal funds sold and securities purchased under | ||||||||||||||||||||||
agreements to resell | $ | 3 | $ | 2 | $ | 5 | ||||||||||||||||
Deposits | 16 | -22 | -6 | |||||||||||||||||||
Commercial paper and other short-term borrowings(2) | -68 | ─ | -68 | |||||||||||||||||||
Securities sold under agreements to repurchase | -13 | -1 | -14 | |||||||||||||||||||
Long-term borrowings(2) | -3,570 | -348 | -3,918 | |||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Federal funds sold and securities purchased under | ||||||||||||||||||||||
agreements to resell | $ | 11 | $ | 4 | $ | 15 | ||||||||||||||||
Deposits | 41 | -66 | -25 | |||||||||||||||||||
Commercial paper and other short-term borrowings(2) | 14 | ─ | 14 | |||||||||||||||||||
Securities sold under agreements to repurchase | -10 | -3 | -13 | |||||||||||||||||||
Long-term borrowings(2) | -5,221 | -1,017 | -6,238 | |||||||||||||||||||
Of the total gains (losses) recorded in Trading revenues for short-term and long-term borrowings for the quarter and nine months ended September 30, 2013, $(171) million and $(313) million, respectively, are attributable to changes in the credit quality of the Company, and the respective remainder is attributable to changes in foreign currency rates or interest rates or movements in the reference price or index for structured notes before the impact of related hedges. | ||||||||||||||||||||||
Of the total gains (losses) recorded in Trading revenues for short-term and long-term borrowings for the quarter and nine months ended September 30, 2012, $(2,262) million and $(3,890) million, respectively, are attributable to changes in the credit quality of the Company, and the respective remainder is attributable to changes in foreign currency rates or interest rates or movements in the reference price or index for structured notes before the impact of related hedges. | ||||||||||||||||||||||
Breakdown of Outstanding Short-term and Long-term Borrowings | ' | |||||||||||||||||||||
Short-term and Long-term | ||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||
At | At | |||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||
Business Unit | 2013 | 2012 | ||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Interest rates | $ | 17,457 | $ | 23,330 | ||||||||||||||||||
Equity | 17,657 | 17,326 | ||||||||||||||||||||
Credit and foreign exchange | 2,688 | 3,337 | ||||||||||||||||||||
Commodities | 540 | 776 | ||||||||||||||||||||
Total | $ | 38,342 | $ | 44,769 | ||||||||||||||||||
Gains (Losses) Due to Changes in Instrument Specific Credit Risk | ' | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Short-term and long-term borrowings(1) | $ | -171 | $ | -2,262 | $ | -313 | $ | -3,890 | ||||||||||||||
Loans(2) | 35 | 255 | 150 | 429 | ||||||||||||||||||
Unfunded lending commitments(3) | 6 | 319 | 221 | 804 | ||||||||||||||||||
_____________ | ||||||||||||||||||||||
(1) The change in the fair value of short-term and long-term borrowings (primarily structured notes) includes an adjustment to reflect the change in credit quality of the Company based upon observations of the Company's secondary bond market spreads. | ||||||||||||||||||||||
(2) Instrument-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses, such as those due to changes in interest rates. | ||||||||||||||||||||||
(3) Gains (losses) were generally determined based on the differential between estimated expected client yields and contractual yields at each respective period end. | ||||||||||||||||||||||
Amount by Which Contractual Principal Amount Exceeds Fair Value | ' | |||||||||||||||||||||
Contractual Principal Amount Exceeds Fair Value | ||||||||||||||||||||||
At | At | |||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Short-term and long-term borrowings(1) | $ | -1,513 | $ | -436 | ||||||||||||||||||
Loans(2) | 17,879 | 25,249 | ||||||||||||||||||||
Loans 90 or more days past due and/or on non-accrual status(2)(3) | 16,149 | 20,456 | ||||||||||||||||||||
_____________ | ||||||||||||||||||||||
(1) These amounts do not include structured notes where the repayment of the initial principal amount fluctuates based on changes in the reference price or index. | ||||||||||||||||||||||
(2) The majority of this difference between principal and fair value amounts emanates from the Company's distressed debt trading business, which purchases distressed debt at amounts well below par. | ||||||||||||||||||||||
(3) The aggregate fair value of loans that were in non-accrual status, which includes all loans 90 or more days past due, was $1,885 million and $1,360 million at September 30, 2013 and December 31, 2012, respectively. The aggregate fair value of loans that were 90 or more days past due was $1,158 million and $840 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ' | |||||||||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||||||||
Quoted Prices | Total | Total | ||||||||||||||||||||
in Active | Gains (Losses) | Gains (Losses) | ||||||||||||||||||||
Carrying | Markets for | Significant | Significant | for the | for the | |||||||||||||||||
Value at | Identical | Observable | Unobservable | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | Assets | Inputs | Inputs | September 30, | September 30, | |||||||||||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | 2013(1) | 2013(1) | |||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Loans(2) | $ | 1,507 | $ | ─ | $ | 1,160 | $ | 347 | $ | -35 | $ | -106 | ||||||||||
Other investments(3)(4) | 55 | ─ | ─ | 55 | -5 | -28 | ||||||||||||||||
Premises, equipment and | ||||||||||||||||||||||
software costs(3)(4) | ─ | ─ | ─ | ─ | -17 | -23 | ||||||||||||||||
Intangible assets(3)(4) | ─ | ─ | ─ | ─ | ─ | -9 | ||||||||||||||||
Total | $ | 1,562 | $ | ─ | $ | 1,160 | $ | 402 | $ | -57 | $ | -166 | ||||||||||
____________ | ||||||||||||||||||||||
(1) Fair value adjustments related to Loans and losses related to Other investments are recorded within Other revenues whereas losses related to Premises, equipment and software costs and Intangible assets are recorded within Other expenses in the condensed consolidated statements of income. . | ||||||||||||||||||||||
(2) Non-recurring changes in the fair value of loans held for investment or held for sale were calculated using recently executed transactions; market price quotations; valuation models that incorporate market observable inputs where possible, such as comparable loan or debt prices and credit default swap spread levels adjusted for any basis difference between cash and derivative instruments; or default recovery analysis where such transactions and quotations are unobservable. | ||||||||||||||||||||||
(3) Carrying values relate only to those assets that had fair value adjustments during the quarter ended September 30, 2013. These amounts do not include assets that had fair value adjustments during the nine months ended September 30, 2013, unless the assets also had a fair value adjustment during the quarter ended September 30, 2013. | ||||||||||||||||||||||
(4) Losses recorded were determined primarily using discounted cash flow models. | ||||||||||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||||||||
Quoted Prices | Total | Total | ||||||||||||||||||||
in Active | Gains(Losses) | Gains (Losses) | ||||||||||||||||||||
Carrying | Markets for | Significant | Significant | for the | for the | |||||||||||||||||
Value at | Identical | Observable | Unobservable | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | Assets | Inputs | Inputs | September 30, | September 30, | |||||||||||||||||
2012 | (Level 1) | (Level 2) | (Level 3) | 2012(1) | 2012(1) | |||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Loans(2) | $ | 893 | $ | ─ | $ | 138 | $ | 755 | $ | -10 | $ | -30 | ||||||||||
Other investments(3)(4) | 82 | ─ | ─ | 82 | -11 | -21 | ||||||||||||||||
Premises, equipment and | ||||||||||||||||||||||
software costs(3)(5) | 34 | ─ | ─ | 34 | -168 | -169 | ||||||||||||||||
Intangible assets(3)(4) | ─ | ─ | ─ | ─ | ─ | -4 | ||||||||||||||||
Total | $ | 1,009 | $ | ─ | $ | 138 | $ | 871 | $ | -189 | $ | -224 | ||||||||||
_____________ | ||||||||||||||||||||||
(1) Losses are recorded within Other expenses in the condensed consolidated statements of income except for fair value adjustments related to Loans and losses related to Other investments, which are included in Other revenues. | ||||||||||||||||||||||
(2) Non-recurring changes in the fair value of loans held for investment or held for sale were calculated using recently executed transactions; market price quotations; valuation models that incorporate market observable inputs where possible, such as comparable loan or debt prices and credit default swap spread levels adjusted for any basis difference between cash and derivative instruments; or default recovery analysis where such transactions and quotations are unobservable. | ||||||||||||||||||||||
(3) Carrying values relate only to those assets that had fair value adjustments during the quarter ended September 30, 2012. These amounts do not include assets that had fair value adjustments during the nine months ended September 30, 2012, unless the assets also had a fair value adjustment during the quarter ended September 30, 2012. | ||||||||||||||||||||||
(4) Losses recorded were determined primarily using discounted cash flow models. | ||||||||||||||||||||||
(5) Losses were determined using discounted cash flow models and primarily represented the write-off of the carrying value of certain premises and software that were abandoned during the quarter ended September 30, 2012 in association with the Wealth Management JV integration. | ||||||||||||||||||||||
Financial Instruments Not Carried at Fair Value on a Recurring Basis | ' | |||||||||||||||||||||
At September 30, 2013 | Fair Value Measurements Using: | |||||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||
Cash and due from banks | $ | 14,333 | $ | 14,333 | $ | 14,333 | $ | — | $ | — | ||||||||||||
Interest bearing deposits with banks | 43,448 | 43,448 | 43,448 | — | — | |||||||||||||||||
Cash deposited with clearing organizations or segregated under federal and | ||||||||||||||||||||||
other regulations or requirements | 37,392 | 37,392 | 37,392 | — | — | |||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 133,120 | 133,117 | — | 132,613 | 504 | |||||||||||||||||
Securities borrowed | 139,169 | 139,165 | — | 138,836 | 329 | |||||||||||||||||
Customer and other receivables(1) | 53,636 | 53,512 | — | 47,964 | 5,548 | |||||||||||||||||
Loans(2) | 37,734 | 37,697 | — | 9,807 | 27,890 | |||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||
Deposits | $ | 103,396 | $ | 103,396 | $ | — | $ | 103,396 | $ | — | ||||||||||||
Commercial paper and other short-term borrowings | 710 | 710 | — | 656 | 54 | |||||||||||||||||
Securities sold under agreements to repurchase | 138,844 | 138,882 | — | 131,399 | 7,483 | |||||||||||||||||
Securities loaned | 32,807 | 32,868 | — | 31,999 | 869 | |||||||||||||||||
Other secured financings | 8,383 | 8,418 | — | 5,944 | 2,474 | |||||||||||||||||
Customer and other payables(1) | 149,005 | 149,005 | — | 149,005 | — | |||||||||||||||||
Long-term borrowings | 121,086 | 124,727 | — | 116,945 | 7,782 | |||||||||||||||||
___________________ | ||||||||||||||||||||||
(1) Accrued interest, fees and dividend receivables and payables where carrying value approximates fair value have been excluded. | ||||||||||||||||||||||
(2) Includes all loans measured at fair value on a non-recurring basis. | ||||||||||||||||||||||
At December 31, 2012 | Fair Value Measurements Using: | |||||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||
Cash and due from banks | $ | 20,878 | $ | 20,878 | $ | 20,878 | $ | — | $ | — | ||||||||||||
Interest bearing deposits with banks | 26,026 | 26,026 | 26,026 | — | — | |||||||||||||||||
Cash deposited with clearing organizations or segregated under federal and | ||||||||||||||||||||||
other regulations or requirements | 30,970 | 30,970 | 30,970 | — | — | |||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 133,791 | 133,792 | — | 133,035 | 757 | |||||||||||||||||
Securities borrowed | 121,701 | 121,705 | — | 121,691 | 14 | |||||||||||||||||
Customer and other receivables(1) | 59,702 | 59,634 | — | 53,532 | 6,102 | |||||||||||||||||
Loans(2) | 29,046 | 27,263 | — | 5,307 | 21,956 | |||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||
Deposits | $ | 81,781 | $ | 81,781 | $ | — | $ | 81,781 | $ | — | ||||||||||||
Commercial paper and other short-term borrowings | 1,413 | 1,413 | — | 1,107 | 306 | |||||||||||||||||
Securities sold under agreements to repurchase | 122,311 | 122,389 | — | 111,722 | 10,667 | |||||||||||||||||
Securities loaned | 36,849 | 37,163 | — | 35,978 | 1,185 | |||||||||||||||||
Other secured financings | 6,261 | 6,276 | — | 3,649 | 2,627 | |||||||||||||||||
Customer and other payables(1) | 125,037 | 125,037 | — | 125,037 | — | |||||||||||||||||
Long-term borrowings | 125,527 | 126,683 | — | 116,511 | 10,172 | |||||||||||||||||
_________________ | ||||||||||||||||||||||
(1) Accrued interest, fees and dividend receivables and payables where carrying value approximates fair value have been excluded. | ||||||||||||||||||||||
(2) Includes all loans measured at fair value on a non-recurring basis. | ||||||||||||||||||||||
Securities_Available_for_Sale_
Securities Available for Sale (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Available-for-sale Securities [Abstract] | ' | |||||||||||||||
Schedule of Available for Sale Securities | ' | |||||||||||||||
At September 30, 2013 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Other-than-Temporary Impairment | Fair Value | ||||||||||||
(dollars in millions) | ||||||||||||||||
Debt securities available for sale: | ||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||
U.S. Treasury securities | $ | 19,856 | $ | 65 | $ | 80 | $ | — | $ | 19,841 | ||||||
U.S. agency securities | 14,098 | 36 | 174 | — | 13,960 | |||||||||||
Total U.S. government and agency securities | 33,954 | 101 | 254 | — | 33,801 | |||||||||||
Corporate and other debt: | ||||||||||||||||
Commercial mortgage-backed securities: | ||||||||||||||||
Agency | 2,382 | — | 76 | — | 2,306 | |||||||||||
Non-Agency | 1,179 | 2 | 19 | — | 1,162 | |||||||||||
Auto loan asset-backed securities | 2,046 | 1 | 3 | — | 2,044 | |||||||||||
Corporate bonds | 3,562 | 4 | 54 | — | 3,512 | |||||||||||
Collateralized debt and loan obligations | 1,087 | — | 14 | — | 1,073 | |||||||||||
FFELP student loan asset-backed securities(1) | 2,950 | 12 | 8 | — | 2,954 | |||||||||||
Total Corporate and other debt | 13,206 | 19 | 174 | — | 13,051 | |||||||||||
Total debt securities available for sale | 47,160 | 120 | 428 | — | 46,852 | |||||||||||
Equity securities available for sale | 15 | — | 1 | — | 14 | |||||||||||
Total | $ | 47,175 | $ | 120 | $ | 429 | $ | — | $ | 46,866 | ||||||
At December 31, 2012 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Other-than-Temporary Impairment | Fair Value | ||||||||||||
(dollars in millions) | ||||||||||||||||
Debt securities available for sale: | ||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||
U.S. Treasury securities | $ | 14,351 | $ | 109 | $ | 2 | $ | — | $ | 14,458 | ||||||
U.S. agency securities | 15,330 | 122 | 3 | — | 15,449 | |||||||||||
Total U.S. government and agency securities | 29,681 | 231 | 5 | — | 29,907 | |||||||||||
Corporate and other debt: | ||||||||||||||||
Commercial mortgage-backed securities: | ||||||||||||||||
Agency | 2,197 | 6 | 4 | — | 2,199 | |||||||||||
Non-Agency | 160 | — | — | — | 160 | |||||||||||
Auto loan asset-backed securities | 1,993 | 4 | 1 | — | 1,996 | |||||||||||
Corporate bonds | 2,891 | 13 | 3 | — | 2,901 | |||||||||||
FFELP student loan asset-backed securities(1) | 2,675 | 23 | — | — | 2,698 | |||||||||||
Total Corporate and other debt | 9,916 | 46 | 8 | — | 9,954 | |||||||||||
Total debt securities available for sale | 39,597 | 277 | 13 | — | 39,861 | |||||||||||
Equity securities available for sale | 15 | — | 7 | — | 8 | |||||||||||
Total | $ | 39,612 | $ | 277 | $ | 20 | $ | — | $ | 39,869 | ||||||
______________ | ||||||||||||||||
Amounts are backed by a guarantee from the U.S. Department of Education of at least 95% of the principal balance and interest on such loans. | ||||||||||||||||
Schedule of Available for Sale Securities in an Unrealized Loss Position | ' | |||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||
At September 30, 2013 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||
(dollars in millions) | ||||||||||||||||
Debt securities available for sale: | ||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||
U.S. Treasury securities | $ | 6,098 | $ | 80 | $ | — | $ | — | $ | 6,098 | $ | 80 | ||||
U.S. agency securities | 7,092 | 172 | 241 | 2 | 7,333 | 174 | ||||||||||
Total U.S. government and agency securities | 13,190 | 252 | 241 | 2 | 13,431 | 254 | ||||||||||
Corporate and other debt: | ||||||||||||||||
Commercial mortgage-backed securities: | ||||||||||||||||
Agency | 2,099 | 62 | 208 | 14 | 2,307 | 76 | ||||||||||
Non-Agency | 947 | 18 | — | 1 | 947 | 19 | ||||||||||
Auto loan asset-backed securities | 1,189 | 3 | 65 | — | 1,254 | 3 | ||||||||||
Corporate bonds | 2,708 | 50 | 119 | 4 | 2,827 | 54 | ||||||||||
Collateralized debt and loan obligations | 1,073 | 14 | — | — | 1,073 | 14 | ||||||||||
FFELP student loan asset-backed securities | 1,251 | 8 | 34 | — | 1,285 | 8 | ||||||||||
Total Corporate and other debt | 9,267 | 155 | 426 | 19 | 9,693 | 174 | ||||||||||
Total debt securities available for sale | 22,457 | 407 | 667 | 21 | 23,124 | 428 | ||||||||||
Equity securities available for sale | 14 | 1 | — | — | 14 | 1 | ||||||||||
Total | $ | 22,471 | $ | 408 | $ | 667 | $ | 21 | $ | 23,138 | $ | 429 | ||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||
At December 31, 2012 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||
(dollars in millions) | ||||||||||||||||
Debt securities available for sale: | ||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||
U.S. Treasury securities | $ | 1,012 | $ | 2 | $ | — | $ | — | $ | 1,012 | $ | 2 | ||||
U.S. agency securities | 1,534 | 3 | 27 | — | 1,561 | 3 | ||||||||||
Total U.S. government and agency securities | 2,546 | 5 | 27 | — | 2,573 | 5 | ||||||||||
Corporate and other debt: | ||||||||||||||||
Commercial mortgage-backed securities: | ||||||||||||||||
Agency | 1,057 | 4 | — | — | 1,057 | 4 | ||||||||||
Auto loan asset-backed securities | 710 | 1 | — | — | 710 | 1 | ||||||||||
Corporate bonds | 934 | 3 | — | — | 934 | 3 | ||||||||||
Total Corporate and other debt | 2,701 | 8 | — | — | 2,701 | 8 | ||||||||||
Total debt securities available for sale | 5,247 | 13 | 27 | — | 5,274 | 13 | ||||||||||
Equity securities available for sale | 8 | 7 | — | — | 8 | 7 | ||||||||||
Total | $ | 5,255 | $ | 20 | $ | 27 | $ | — | $ | 5,282 | $ | 20 | ||||
Schedule of Amortized Cost and Fair Valueof Available for Sale Debt Securities by Contractual Date | ' | |||||||||||||||
At September 30, 2013 | Amortized Cost | Fair Value | Annualized Average Yield | |||||||||||||
(dollars in millions) | ||||||||||||||||
U.S. government and agency securities: | ||||||||||||||||
U.S. Treasury securities: | ||||||||||||||||
Due within 1 year | $ | 3,153 | $ | 3,159 | 0.30% | |||||||||||
After 1 year through 5 years | 16,510 | 16,489 | 0.80% | |||||||||||||
After 5 years through 10 years | 193 | 193 | 2.00% | |||||||||||||
Total | 19,856 | 19,841 | ||||||||||||||
U.S. agency securities: | ||||||||||||||||
After 5 years through 10 years | 2,396 | 2,393 | 1.30% | |||||||||||||
After 10 years | 11,702 | 11,567 | 1.30% | |||||||||||||
Total | 14,098 | 13,960 | ||||||||||||||
Total U.S. government and agency securities | 33,954 | 33,801 | 0.90% | |||||||||||||
Corporate and other debt: | ||||||||||||||||
Commercial mortgage-backed securities: | ||||||||||||||||
Agency: | ||||||||||||||||
After 1 year through 5 years | 540 | 534 | 0.90% | |||||||||||||
After 5 years through 10 years | 530 | 517 | 1.00% | |||||||||||||
After 10 years | 1,312 | 1,255 | 1.50% | |||||||||||||
Total | 2,382 | 2,306 | ||||||||||||||
Non-Agency: | ||||||||||||||||
After 1 year through 5 years | 114 | 111 | 1.10% | |||||||||||||
After 5 years through 10 years | 60 | 59 | 1.40% | |||||||||||||
After 10 years | 1,005 | 992 | 1.60% | |||||||||||||
Total | 1,179 | 1,162 | ||||||||||||||
Auto loan asset-backed securities: | ||||||||||||||||
After 1 year through 5 years | 1,921 | 1,919 | 0.70% | |||||||||||||
After 5 years through 10 years | 125 | 125 | 0.80% | |||||||||||||
Total | 2,046 | 2,044 | ||||||||||||||
Corporate bonds: | ||||||||||||||||
Due within 1 year | 111 | 111 | 0.60% | |||||||||||||
After 1 year through 5 years | 2,702 | 2,678 | 1.20% | |||||||||||||
After 5 years through 10 years | 749 | 723 | 2.10% | |||||||||||||
Total | 3,562 | 3,512 | ||||||||||||||
Collateralized debt and loan obligations: | ||||||||||||||||
After 1 year through 5 years | 50 | 49 | 1.70% | |||||||||||||
After 10 years | 1,037 | 1,024 | 1.40% | |||||||||||||
Total | 1,087 | 1,073 | ||||||||||||||
FFELP student loan asset-backed securities: | ||||||||||||||||
After 1 year through 5 years | 85 | 85 | 0.70% | |||||||||||||
After 5 years through 10 years | 610 | 611 | 0.90% | |||||||||||||
After 10 years | 2,255 | 2,258 | 1.00% | |||||||||||||
Total | 2,950 | 2,954 | ||||||||||||||
Total Corporate and other debt | 13,206 | 13,051 | 1.20% | |||||||||||||
Total debt securities available for sale | $ | 47,160 | $ | 46,852 | 1.00% | |||||||||||
Schedule of Proceeds of Sale of Securities Available for Sale | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(dollars in millions) | ||||||||||||||||
Gross realized gains | $ | 6 | $ | 31 | $ | 47 | $ | 56 | ||||||||
Gross realized losses | $ | 1 | $ | — | $ | 4 | $ | 3 | ||||||||
Collateralized_Transactions_Ta
Collateralized Transactions (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Collateralized Transactions | ' | ||||||||||||
Information of Offsetting of Assets and Liabilities | ' | ||||||||||||
At September 30, 2013 | |||||||||||||
Gross Amounts(1) | Amounts Offset in the Condensed Consolidated Statements of Financial Condition(2) | Net Amounts Presented in the Condensed Consolidated Statements of Financial Condition | Financial Instruments Not Offset in the Condensed Consolidated Statements of Financial Condition(3) | Net Exposure | |||||||||
(dollars in millions) | |||||||||||||
Assets | |||||||||||||
Federal funds sold and securities purchased under | |||||||||||||
agreements to resell | $ | 211,457 | $ | -77,469 | $ | 133,988 | $ | -127,980 | $ | 6,008 | |||
Securities borrowed | 145,647 | -6,478 | 139,169 | -122,345 | 16,824 | ||||||||
Liabilities | |||||||||||||
Securities sold under agreements to repurchase | $ | 216,867 | $ | -77,469 | $ | 139,398 | $ | -105,061 | $ | 34,337 | |||
Securities loaned | 39,285 | -6,478 | 32,807 | -31,857 | 950 | ||||||||
_____________ | |||||||||||||
(1) Amounts include $5.3 billion of Federal funds sold and securities purchased under agreements to resell, $12.5 billion of Securities borrowed and $33.0 billion of Securities sold under agreements to repurchase which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. | |||||||||||||
(2) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default and where certain other criteria are met in accordance with applicable offsetting accounting guidance. | |||||||||||||
(3) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. | |||||||||||||
At December 31, 2012 | |||||||||||||
Gross Amounts(1) | Amounts Offset in the Condensed Consolidated Statements of Financial Condition(2) | Net Amounts Presented in the Condensed Consolidated Statements of Financial Condition | Financial Instruments Not Offset in the Condensed Consolidated Statements of Financial Condition(3) | Net Exposure | |||||||||
(dollars in millions) | |||||||||||||
Assets | |||||||||||||
Federal funds sold and securities purchased under | |||||||||||||
agreements to resell | $ | 203,448 | $ | -69,036 | $ | 134,412 | $ | -126,303 | $ | 8,109 | |||
Securities borrowed | 127,002 | -5,301 | 121,701 | -105,849 | 15,852 | ||||||||
Liabilities | |||||||||||||
Securities sold under agreements to repurchase | $ | 191,710 | $ | -69,036 | $ | 122,674 | $ | -103,521 | $ | 19,153 | |||
Securities loaned | 42,150 | -5,301 | 36,849 | -30,395 | 6,454 | ||||||||
_____________ | |||||||||||||
(1) Amounts include $7.4 billion of Federal funds sold and securities purchased under agreements to resell, $8.6 billion of Securities borrowed, $17.5 billion of Securities sold under agreements to repurchase and $0.6 billion of Securities loaned which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. | |||||||||||||
(2) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default and where certain other criteria are met in accordance with applicable offsetting accounting guidance. | |||||||||||||
(3) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. | |||||||||||||
Schedule of Trading Assets That Have Been Loaned or Pledged to Counterparties | ' | ||||||||||||
At September 30, 2013 | At December 31, 2012 | ||||||||||||
(dollars in millions) | |||||||||||||
Trading assets: | |||||||||||||
U.S. government and agency securities | $ | 19,501 | $ | 15,273 | |||||||||
Other sovereign government obligations | 4,047 | 3,278 | |||||||||||
Corporate and other debt | 13,173 | 11,980 | |||||||||||
Corporate equities | 10,270 | 26,377 | |||||||||||
Total | $ | 46,991 | $ | 56,908 | |||||||||
Schedule of Cash and Securities Segregated under Federal and Other Regulations | ' | ||||||||||||
At September 30, 2013 | At December 31, 2012 | ||||||||||||
(dollars in millions) | |||||||||||||
Cash deposited with clearing organizations or segregated under federal and other | |||||||||||||
regulations or requirements | $ | 37,392 | $ | 30,970 | |||||||||
Securities(1) | 12,922 | 13,424 | |||||||||||
Total | $ | 50,314 | $ | 44,394 | |||||||||
_____________ | |||||||||||||
(1) Securities deposited with clearing organizations or segregated under federal and other regulations or requirements are sourced from Federal funds sold and securities purchased under agreements to resell and Trading assets in the condensed consolidated statements of financial condition. | |||||||||||||
Variable_Interest_Entities_and1
Variable Interest Entities and Securitization Activities (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Securitization Activities and Variable Interest Entities [Abstract] | ' | ||||||||||||
Consolidated VIEs | ' | ||||||||||||
At September 30, 2013 | |||||||||||||
Mortgage and Asset-Backed Securitizations | Collateralized Debt Obligations | Managed Real Estate Partnerships | Other Structured Financings | Other | |||||||||
(dollars in millions) | |||||||||||||
VIE assets | $ | 752 | $ | — | $ | 2,269 | $ | 1,187 | $ | 1,343 | |||
VIE liabilities | $ | 423 | $ | 86 | $ | 59 | $ | 66 | $ | 163 | |||
At December 31, 2012 | |||||||||||||
Mortgage and Asset-Backed Securitizations | Collateralized Debt Obligations | Managed Real Estate Partnerships | Other Structured Financings | Other | |||||||||
(dollars in millions) | |||||||||||||
VIE assets | $ | 978 | $ | 52 | $ | 2,394 | $ | 983 | $ | 1,676 | |||
VIE liabilities | $ | 646 | $ | 16 | $ | 83 | $ | 65 | $ | 313 | |||
Non-Consolidated VIEs | ' | ||||||||||||
At September 30, 2013 | |||||||||||||
Mortgage and Asset-Backed Securitizations | Collateralized Debt Obligations | Municipal Tender Option Bonds | Other Structured Financings | Other | |||||||||
(dollars in millions) | |||||||||||||
VIE assets that the Company does not consolidate | |||||||||||||
(unpaid principal balance)(1) | $ | 163,017 | $ | 26,153 | $ | 3,129 | $ | 1,802 | $ | 10,036 | |||
Maximum exposure to loss: | |||||||||||||
Debt and equity interests(2) | $ | 14,257 | $ | 1,920 | $ | 21 | $ | 1,071 | $ | 2,965 | |||
Derivative and other contracts | 10 | 23 | 1,975 | — | 164 | ||||||||
Commitments, guarantees and other | — | 142 | — | 656 | 640 | ||||||||
Total maximum exposure to loss | $ | 14,267 | $ | 2,085 | $ | 1,996 | $ | 1,727 | $ | 3,769 | |||
Carrying value of exposure to loss—Assets: | |||||||||||||
Debt and equity interests(2) | $ | 14,257 | $ | 1,920 | $ | 21 | $ | 670 | $ | 2,965 | |||
Derivative and other contracts | 10 | 4 | 4 | — | 73 | ||||||||
Total carrying value of exposure to loss—Assets | $ | 14,267 | $ | 1,924 | $ | 25 | $ | 670 | $ | 3,038 | |||
Carrying value of exposure to loss—Liabilities: | |||||||||||||
Derivative and other contracts | $ | — | $ | 2 | $ | 1 | $ | — | $ | 55 | |||
Commitments, guarantees and other | — | — | — | 9 | — | ||||||||
Total carrying value of exposure to loss—Liabilities | $ | — | $ | 2 | $ | 1 | $ | 9 | $ | 55 | |||
(1) Mortgage and asset-backed securitizations include VIE assets as follows: $17.2 billion of residential mortgages; $47.5 billion of commercial mortgages; $56.9 billion of U.S. agency collateralized mortgage obligations; and $41.4 billion of other consumer or commercial loans. | |||||||||||||
(2) Mortgage and asset-backed securitizations include VIE debt and equity interests as follows: $1.7 billion of residential mortgages; $1.1 billion of commercial mortgages; $7.5 billion of U.S. agency collateralized mortgage obligations; and $4.0 billion of other consumer or commercial loans. | |||||||||||||
At December 31, 2012 | |||||||||||||
Mortgage and Asset-Backed Securitizations | Collateralized Debt Obligations | Municipal Tender Option Bonds | Other Structured Financings | Other | |||||||||
(dollars in millions) | |||||||||||||
VIE assets that the Company does not consolidate | |||||||||||||
(unpaid principal balance)(1) | $ | 251,689 | $ | 13,178 | $ | 3,390 | $ | 1,811 | $ | 14,029 | |||
Maximum exposure to loss: | |||||||||||||
Debt and equity interests(2) | $ | 22,280 | $ | 1,173 | $ | — | $ | 1,053 | $ | 3,387 | |||
Derivative and other contracts | 154 | 51 | 2,158 | — | 562 | ||||||||
Commitments, guarantees and other | 66 | — | — | 679 | 384 | ||||||||
Total maximum exposure to loss | $ | 22,500 | $ | 1,224 | $ | 2,158 | $ | 1,732 | $ | 4,333 | |||
Carrying value of exposure to loss—Assets: | |||||||||||||
Debt and equity interests(2) | $ | 22,280 | $ | 1,173 | $ | — | $ | 663 | $ | 3,387 | |||
Derivative and other contracts | 156 | 8 | 4 | — | 174 | ||||||||
Total carrying value of exposure to loss—Assets | $ | 22,436 | $ | 1,181 | $ | 4 | $ | 663 | $ | 3,561 | |||
Carrying value of exposure to loss—Liabilities: | |||||||||||||
Derivative and other contracts | $ | 11 | $ | 2 | $ | — | $ | — | $ | 172 | |||
Commitments, guarantees and other | — | — | — | 12 | — | ||||||||
Total carrying value of exposure to loss—Liabilities | $ | 11 | $ | 2 | $ | — | $ | 12 | $ | 172 | |||
(1) Mortgage and asset-backed securitizations include VIE assets as follows: $18.3 billion of residential mortgages; $53.8 billion of commercial mortgages; $126.3 billion of U.S. agency collateralized mortgage obligations; and $53.3 billion of other consumer or commercial loans. | |||||||||||||
(2) Mortgage and asset-backed securitizations include VIE debt and equity interests as follows: $1.0 billion of residential mortgages; $1.5 billion of commercial mortgages; $14.8 billion of U.S. agency collateralized mortgage obligations; and $5.0 billion of other consumer or commercial loans. | |||||||||||||
Information Regarding SPEs | ' | ||||||||||||
At September 30, 2013 | |||||||||||||
Residential Mortgage Loans | Commercial Mortgage Loans | U.S. Agency Collateralized Mortgage Obligations | Credit-Linked Notes and Other | ||||||||||
(dollars in millions) | |||||||||||||
SPE assets (unpaid principal balance)(1) | $ | 33,610 | $ | 54,648 | $ | 18,348 | $ | 12,436 | |||||
Retained interests (fair value): | |||||||||||||
Investment grade | $ | — | $ | 10 | $ | 698 | $ | — | |||||
Non-investment grade | 128 | 226 | — | 1,322 | |||||||||
Total retained interests (fair value) | $ | 128 | $ | 236 | $ | 698 | $ | 1,322 | |||||
Interests purchased in the secondary market (fair value): | |||||||||||||
Investment grade | $ | 4 | $ | 80 | $ | 27 | $ | 351 | |||||
Non-investment grade | 82 | 57 | — | 65 | |||||||||
Total interests purchased in the secondary market (fair value) | $ | 86 | $ | 137 | $ | 27 | $ | 416 | |||||
Derivative assets (fair value) | $ | — | $ | 729 | $ | — | $ | 123 | |||||
Derivative liabilities (fair value) | $ | 2 | $ | — | $ | — | $ | 184 | |||||
_____________ | |||||||||||||
(1) Amounts include assets transferred by unrelated transferors. | |||||||||||||
At September 30, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
(dollars in millions) | |||||||||||||
Retained interests (fair value): | |||||||||||||
Investment grade | $ | — | $ | 708 | $ | — | $ | 708 | |||||
Non-investment grade | — | 198 | 1,478 | 1,676 | |||||||||
Total retained interests (fair value) | $ | — | $ | 906 | $ | 1,478 | $ | 2,384 | |||||
Interests purchased in the secondary market (fair value): | |||||||||||||
Investment grade | $ | — | $ | 454 | $ | 8 | $ | 462 | |||||
Non-investment grade | — | 179 | 25 | 204 | |||||||||
Total interests purchased in the secondary market (fair value) | $ | — | $ | 633 | $ | 33 | $ | 666 | |||||
Derivative assets (fair value) | $ | — | $ | 624 | $ | 228 | $ | 852 | |||||
Derivative liabilities (fair value) | $ | — | $ | 172 | $ | 14 | $ | 186 | |||||
At December 31, 2012 | |||||||||||||
Residential Mortgage Loans | Commercial Mortgage Loans | U.S. Agency Collateralized Mortgage Obligations | Credit-Linked Notes and Other | ||||||||||
(dollars in millions) | |||||||||||||
SPE assets (unpaid principal balance)(1) | $ | 36,750 | $ | 70,824 | $ | 17,787 | $ | 14,701 | |||||
Retained interests (fair value): | |||||||||||||
Investment grade | $ | 1 | $ | 77 | $ | 1,468 | $ | — | |||||
Non-investment grade | 54 | 109 | — | 1,503 | |||||||||
Total retained interests (fair value) | $ | 55 | $ | 186 | $ | 1,468 | $ | 1,503 | |||||
Interests purchased in the secondary market (fair value): | |||||||||||||
Investment grade | $ | 11 | $ | 124 | $ | 99 | $ | 389 | |||||
Non-investment grade | 113 | 34 | — | 31 | |||||||||
Total interests purchased in the secondary market (fair value) | $ | 124 | $ | 158 | $ | 99 | $ | 420 | |||||
Derivative assets (fair value) | $ | 2 | $ | 948 | $ | — | $ | 177 | |||||
Derivative liabilities (fair value) | $ | 22 | $ | — | $ | — | $ | 303 | |||||
_____________ | |||||||||||||
(1) Amounts include assets transferred by unrelated transferors. | |||||||||||||
At December 31, 2012 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
(dollars in millions) | |||||||||||||
Retained interests (fair value): | |||||||||||||
Investment grade | $ | — | $ | 1,476 | $ | 70 | $ | 1,546 | |||||
Non-investment grade | — | 84 | 1,582 | 1,666 | |||||||||
Total retained interests (fair value) | $ | — | $ | 1,560 | $ | 1,652 | $ | 3,212 | |||||
Interests purchased in the secondary market (fair value): | |||||||||||||
Investment grade | $ | — | $ | 617 | $ | 6 | $ | 623 | |||||
Non-investment grade | — | 139 | 39 | 178 | |||||||||
Total interests purchased in the secondary market (fair value) | $ | — | $ | 756 | $ | 45 | $ | 801 | |||||
Derivative assets (fair value) | $ | — | $ | 774 | $ | 353 | $ | 1,127 | |||||
Derivative liabilities (fair value) | $ | — | $ | 295 | $ | 30 | $ | 325 | |||||
Transfers of Assets Treated as Secured Financings | ' | ||||||||||||
At September 30, 2013 | At December 31, 2012 | ||||||||||||
Carrying Value of | Carrying Value of | ||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||
(dollars in millions) | |||||||||||||
Credit-linked notes | $ | 48 | $ | 41 | $ | 283 | $ | 222 | |||||
Equity-linked transactions | 39 | 35 | 422 | 405 | |||||||||
Other | 360 | 359 | 29 | 28 | |||||||||
Mortgage Servicing Activities for SPEs | ' | ||||||||||||
At September 30, 2013 | |||||||||||||
Residential Mortgage Unconsolidated SPEs | Residential Mortgage Consolidated SPEs | Commercial Mortgage Unconsolidated SPEs | |||||||||||
(dollars in millions) | |||||||||||||
Assets serviced (unpaid principal balance) | $ | 780 | $ | 818 | $ | 4,041 | |||||||
Amounts past due 90 days or greater | |||||||||||||
(unpaid principal balance)(1) | $ | 75 | $ | 45 | $ | — | |||||||
Percentage of amounts past due 90 days | |||||||||||||
or greater(1) | 9.60% | 5.50% | — | ||||||||||
Credit losses | $ | 2 | $ | 12 | $ | — | |||||||
_____________ | |||||||||||||
(1) Amounts include loans that are at least 90 days contractually delinquent, loans for which the borrower has filed for bankruptcy, loans in foreclosure and real estate owned. | |||||||||||||
At December 31, 2012 | |||||||||||||
Residential Mortgage Unconsolidated SPEs | Residential Mortgage Consolidated SPEs | Commercial Mortgage Unconsolidated SPEs | |||||||||||
(dollars in millions) | |||||||||||||
Assets serviced (unpaid principal balance) | $ | 821 | $ | 1,141 | $ | 4,760 | |||||||
Amounts past due 90 days or greater | |||||||||||||
(unpaid principal balance)(1) | $ | 86 | $ | 43 | $ | — | |||||||
Percentage of amounts past due 90 days | |||||||||||||
or greater(1) | 10.40% | 3.80% | — | ||||||||||
Credit losses | $ | 3 | $ | 2 | $ | — | |||||||
_____________ | |||||||||||||
(1) Amounts include loans that are at least 90 days contractually delinquent, loans for which the borrower has filed for bankruptcy, loans in foreclosure and real estate owned. | |||||||||||||
Financing_Receivables_Tables
Financing Receivables (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Financing Receivables [Abstract] | ' | |||||||||||
Schedule of Loans Held for Investment | ' | |||||||||||
At | At | |||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||
(dollars in millions) | ||||||||||||
Commercial and industrial | $ | 11,953 | $ | 9,449 | ||||||||
Consumer loans | 10,299 | 7,618 | ||||||||||
Residential real estate loans | 8,784 | 6,630 | ||||||||||
Wholesale real estate loans | 2,102 | 326 | ||||||||||
Total loans held for investment, gross of allowance for loan losses | 33,138 | 24,023 | ||||||||||
Allowance for loan losses | -166 | -106 | ||||||||||
Total loans held for investment, net of allowance for loan losses | $ | 32,972 | $ | 23,917 | ||||||||
Loan and Lending-related Commitments by Impairment Methodology, and Their Respective Allowances | ' | |||||||||||
Commercial and Industrial | Consumer | Residential Real Estate | Wholesale Real Estate | |||||||||
Total | ||||||||||||
(dollars in millions) | ||||||||||||
Allowance for loan losses: | ||||||||||||
Balance at December 31, 2012 | $ | 96 | $ | 3 | $ | 5 | $ | 2 | $ | 106 | ||
Gross charge-offs | -12 | — | -1 | -2 | -15 | |||||||
Net charge-offs | -12 | — | -1 | -2 | -15 | |||||||
Provision for loan losses(1) | 64 | -2 | — | 13 | 75 | |||||||
Balance at September 30, 2013 | $ | 148 | $ | 1 | $ | 4 | $ | 13 | $ | 166 | ||
Allowance for loan losses by impairment methodology: | ||||||||||||
Collectively evaluated for impairment | $ | 129 | $ | 1 | $ | 4 | $ | 9 | $ | 143 | ||
Individually evaluated for impairment | 19 | — | — | 4 | 23 | |||||||
Total allowance for loan losses at September 30, | ||||||||||||
2013 | $ | 148 | $ | 1 | $ | 4 | $ | 13 | $ | 166 | ||
Loans evaluated by impairment methodology(2): | ||||||||||||
Collectively evaluated for impairment | $ | 11,826 | $ | 10,299 | $ | 8,776 | $ | 2,092 | $ | 32,993 | ||
Individually evaluated for impairment | 127 | — | 8 | 10 | 145 | |||||||
Total loans evaluated at September 30, 2013 | $ | 11,953 | $ | 10,299 | $ | 8,784 | $ | 2,102 | $ | 33,138 | ||
Allowance for lending-related commitments: | ||||||||||||
Balance at December 31, 2012 | $ | 90 | $ | — | $ | — | $ | 1 | $ | 91 | ||
Provision for lending-related commitments(3) | 41 | — | — | — | 41 | |||||||
Other | -10 | — | — | — | -10 | |||||||
Balance at September 30, 2013 | $ | 121 | $ | — | $ | — | $ | 1 | $ | 122 | ||
Allowance for lending-related commitments by | ||||||||||||
impairment methodology: | ||||||||||||
Collectively evaluated for impairment | $ | 121 | $ | — | $ | — | $ | 1 | $ | 122 | ||
Individually evaluated for impairment | — | — | — | — | — | |||||||
Total allowance for lending-related commitments | ||||||||||||
at September 30, 2013 | $ | 121 | $ | — | $ | — | $ | 1 | $ | 122 | ||
Lending-related commitments evaluated by | ||||||||||||
impairment methodology: | ||||||||||||
Collectively evaluated for impairment | $ | 57,137 | $ | 1,770 | $ | 1,407 | $ | 234 | $ | 60,548 | ||
Individually evaluated for impairment | — | — | — | — | — | |||||||
Total lending-related commitments evaluated | ||||||||||||
at September 30, 2013 | $ | 57,137 | $ | 1,770 | $ | 1,407 | $ | 234 | $ | 60,548 | ||
_______________ | ||||||||||||
(1) The Company recorded $41 million of provision for loan losses within Other revenues for the quarter ended September 30, 2013. | ||||||||||||
(2) Balances are gross of the allowance and represent recorded investment in the loans. | ||||||||||||
(3) The Company recorded $12 million of provision for lending-related commitments within Other non-interest expenses for the quarter ended September 30, 2013. | ||||||||||||
Commercial and Industrial | Consumer | Residential Real Estate | Wholesale Real Estate | |||||||||
Total | ||||||||||||
(dollars in millions) | ||||||||||||
Allowance for loan losses: | ||||||||||||
Balance at December 31, 2011 | $ | 14 | $ | 1 | $ | 1 | $ | 1 | $ | 17 | ||
Gross charge-offs | -12 | — | — | — | -12 | |||||||
Gross recoveries | — | — | — | 11 | 11 | |||||||
Net charge-offs | -12 | — | — | 11 | -1 | |||||||
Provision for loan losses(1) | 86 | 6 | 2 | -9 | 85 | |||||||
Balance at September 30, 2012 | $ | 88 | $ | 7 | $ | 3 | $ | 3 | $ | 101 | ||
Allowance for loan losses by impairment methodology: | ||||||||||||
Collectively evaluated for impairment | $ | 94 | $ | 3 | $ | 5 | $ | 2 | $ | 104 | ||
Individually evaluated for impairment | 2 | — | — | — | 2 | |||||||
Total allowance for loan losses at December 31, 2012 | $ | 96 | $ | 3 | $ | 5 | $ | 2 | $ | 106 | ||
Loans evaluated by impairment methodology(2): | ||||||||||||
Collectively evaluated for impairment | $ | 9,419 | $ | 7,618 | $ | 6,629 | $ | 326 | $ | 23,992 | ||
Individually evaluated for impairment | 30 | — | 1 | — | 31 | |||||||
Total loan evaluated at December 31, 2012 | $ | 9,449 | $ | 7,618 | $ | 6,630 | $ | 326 | $ | 24,023 | ||
Allowance for lending-related commitments: | ||||||||||||
Balance at December 31, 2011 | $ | 19 | $ | 3 | $ | — | $ | 2 | $ | 24 | ||
Provision for lending-related commitments(3) | 43 | -1 | — | — | 42 | |||||||
Balance at September 30, 2012 | $ | 62 | $ | 2 | $ | — | $ | 2 | $ | 66 | ||
Allowance for lending-related commitments by | ||||||||||||
impairment methodology: | ||||||||||||
Collectively evaluated for impairment | $ | 86 | $ | — | $ | — | $ | 1 | $ | 87 | ||
Individually evaluated for impairment | 4 | — | — | — | 4 | |||||||
Total allowance for lending-related commitments | ||||||||||||
at December 31, 2012 | $ | 90 | $ | — | $ | — | $ | 1 | $ | 91 | ||
Lending-related commitments evaluated by | ||||||||||||
impairment methodology: | ||||||||||||
Collectively evaluated for impairment | $ | 44,079 | $ | 1,406 | $ | 712 | $ | 101 | $ | 46,298 | ||
Individually evaluated for impairment | 47 | — | — | — | 47 | |||||||
Total lending-related commitments evaluated | ||||||||||||
at December 31, 2012 | $ | 44,126 | $ | 1,406 | $ | 712 | $ | 101 | $ | 46,345 | ||
_______________ | ||||||||||||
(1) The Company recorded $31 million of provision for loan losses within Other revenues for the quarter ended September 30, 2012. | ||||||||||||
(2) Balances are gross of the allowance and represent recorded investment in the loans. | ||||||||||||
(3) The Company recorded $34 million of provision for lending-related commitments within Other non-interest expenses for the quarter ended September 30, 2012. | ||||||||||||
Goodwill_and_Net_Intangible_As1
Goodwill and Net Intangible Assets (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Goodwill and Net Intangible Assets | ' | ||||||||
Changes in Carrying Amount of Goodwill | ' | ||||||||
Institutional Securities(1) | Wealth Management(1) | Investment Management | Total | ||||||
(dollars in millions) | |||||||||
Goodwill at December 31, 2012(2) | $ | 337 | $ | 5,573 | $ | 740 | $ | 6,650 | |
Foreign currency translation adjustments and other | -31 | ─ | ─ | -31 | |||||
Goodwill disposed of during the period(3)(4) | -17 | -11 | ─ | -28 | |||||
Goodwill at September 30, 2013(2) | $ | 289 | $ | 5,562 | $ | 740 | $ | 6,591 | |
_____________ | |||||||||
(1) On January 1, 2013, the International Wealth Management business was transferred from the Wealth Management business segment to the Equity division within the Institutional Securities business segment. Accordingly, prior period amounts have been recast to reflect the International Wealth Management business as part of the Institutional Securities business segment. | |||||||||
(2) The amount of the Company's goodwill before accumulated impairments of $700 million, which included $673 million related to the Institutional Securities business segment and $27 million related to the Investment Management business segment, was $7,291 million and $7,350 million at September 30, 2013 and December 31, 2012, respectively. | |||||||||
(3) In 2011, the Company announced that it had reached an agreement with the employees of its in-house quantitative proprietary trading unit, Process Driven Trading (“PDT”), within the Institutional Securities business segment, whereby PDT employees will acquire certain assets from the Company and launch an independent advisory firm. This transaction closed on January 1, 2013. | |||||||||
(4) The Wealth Management business segment sold the U.K. operations of Global Stock Plan Services business to Computershare Limited. This transaction closed on May 31, 2013. | |||||||||
Changes in Carrying Amount of Intangible Assets | ' | ||||||||
Institutional Securities | Wealth Management | Investment Management | Total | ||||||
(dollars in millions) | |||||||||
Amortizable net intangible assets at December 31, 2012 | $ | 175 | $ | 3,600 | $ | 1 | $ | 3,776 | |
Mortgage servicing rights (see Note 7) | — | 7 | — | 7 | |||||
Net intangible assets at December 31, 2012 | $ | 175 | $ | 3,607 | $ | 1 | $ | 3,783 | |
Amortizable net intangible assets at December 31, 2012 | $ | 175 | $ | 3,600 | $ | 1 | $ | 3,776 | |
Foreign currency translation adjustments and other | -2 | — | — | -2 | |||||
Amortization expense | -9 | -250 | — | -259 | |||||
Impairment losses(1) | -2 | -7 | — | -9 | |||||
Amortizable net intangible assets at September 30, 2013 | 162 | 3,343 | 1 | 3,506 | |||||
Mortgage servicing rights (see Note 7) | — | 8 | — | 8 | |||||
Net intangible assets at September 30, 2013 | $ | 162 | $ | 3,351 | $ | 1 | $ | 3,514 | |
____________ | |||||||||
(1) Impairment losses are recorded within Other expenses. | |||||||||
Borrowings_and_Other_Secured_F1
Borrowings and Other Secured Financings (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Borrowings and Other Secured Financings | ' | ||||||
Components of Long-term Borrowings | ' | ||||||
At | At | ||||||
30-Sep-13 | 31-Dec-12 | ||||||
(dollars in millions) | |||||||
Senior debt | $ | 145,515 | $ | 158,899 | |||
Subordinated debt | 7,478 | 5,845 | |||||
Junior subordinated debentures | 4,812 | 4,827 | |||||
Total | $ | 157,805 | $ | 169,571 | |||
Other Secured Financings | ' | ||||||
At September 30, 2013 | At December 31, 2012 | ||||||
(dollars in millions) | |||||||
Secured financings with original maturities greater than one year | $ | 10,163 | $ | 14,431 | |||
Secured financings with original maturities one year or less | 3,930 | 641 | |||||
Failed sales(1) | 435 | 655 | |||||
Total(2) | $ | 14,528 | $ | 15,727 | |||
___________ | |||||||
(1) For more information on failed sales, see Note 7. | |||||||
(2) Amounts include $6,145 million and $9,466 million at fair value at September 30, 2013 and December 31, 2012, respectively. |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Derivative Instrument Detail [Abstract] | ' | |||||||||||||||||||
Offsetting of Derivative Instruments and Related Collateral Amounts | ' | |||||||||||||||||||
At September 30, 2013 | ||||||||||||||||||||
Gross Amounts(1) | Amounts Offset in the Condensed Consolidated Statements of Financial Condition(2) | Net Amounts Presented in the Condensed Consolidated Statements of Financial Condition | Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition(3) | Net Exposure | ||||||||||||||||
Financial Instruments Collateral | Other Cash Collateral | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivative assets | ||||||||||||||||||||
Bilateral OTC | $ | 450,627 | $ | -422,897 | $ | 27,730 | $ | -8,399 | $ | -79 | $ | 19,252 | ||||||||
Cleared OTC(4) | 284,888 | -284,147 | 741 | — | — | 741 | ||||||||||||||
Exchange traded | 34,487 | -27,520 | 6,967 | — | — | 6,967 | ||||||||||||||
Total derivative assets | $ | 770,002 | $ | -734,564 | $ | 35,438 | $ | -8,399 | $ | -79 | $ | 26,960 | ||||||||
Derivative liabilities | ||||||||||||||||||||
Bilateral OTC | $ | 427,774 | $ | -400,382 | $ | 27,392 | $ | -5,873 | $ | -151 | $ | 21,368 | ||||||||
Cleared OTC(4) | 285,023 | -284,827 | 196 | — | -49 | 147 | ||||||||||||||
Exchange traded | 38,100 | -27,520 | 10,580 | -2,395 | — | 8,185 | ||||||||||||||
Total derivative liabilities | $ | 750,897 | $ | -712,729 | $ | 38,168 | $ | -8,268 | $ | -200 | $ | 29,700 | ||||||||
(1) Amounts include $10.5 billion of derivative assets and $10.6 billion of derivative liabilities which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. See also “Fair Value and Notional of Derivative Instruments” for additional disclosure about gross fair values and notionals for derivative instruments by risk type. | ||||||||||||||||||||
(2) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default and where certain other criteria are met in accordance with applicable offsetting accounting guidance. | ||||||||||||||||||||
(3) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. | ||||||||||||||||||||
(4) Includes OTC derivatives that are centrally cleared in accordance with certain regulatory requirements. | ||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||
Gross Amounts(1) | Amounts Offset in the Condensed Consolidated Statements of Financial Condition(2) | Net Amounts Presented in the Condensed Consolidated Statements of Financial Condition | Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition(3) | Net Exposure | ||||||||||||||||
Financial Instruments Collateral | Other Cash Collateral | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivative assets | ||||||||||||||||||||
Bilateral OTC | $ | 604,713 | $ | -573,844 | $ | 30,869 | $ | -7,691 | $ | -232 | $ | 22,946 | ||||||||
Cleared OTC(4) | 375,233 | -374,546 | 687 | — | — | 687 | ||||||||||||||
Exchange traded | 24,305 | -19,664 | 4,641 | — | — | 4,641 | ||||||||||||||
Total derivative assets | $ | 1,004,251 | $ | -968,054 | $ | 36,197 | $ | -7,691 | $ | -232 | $ | 28,274 | ||||||||
Derivative Liabilities | ||||||||||||||||||||
Bilateral OTC | $ | 578,018 | $ | -547,285 | $ | 30,733 | $ | -7,871 | $ | -64 | $ | 22,798 | ||||||||
Cleared OTC(4) | 374,960 | -374,866 | 94 | — | -23 | 71 | ||||||||||||||
Exchange traded | 25,795 | -19,664 | 6,131 | -1,028 | — | 5,103 | ||||||||||||||
Total derivative liabilities | $ | 978,773 | $ | -941,815 | $ | 36,958 | $ | -8,899 | $ | -87 | $ | 27,972 | ||||||||
(1) Amounts include $7.2 billion of derivative assets and $7.3 billion of derivative liabilities which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. See also “Fair Value and Notional of Derivative Instruments” for additional disclosure about gross fair values and notionals for derivative instruments by risk type. | ||||||||||||||||||||
(2) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default and where certain other criteria are met in accordance with applicable offsetting accounting guidance. | ||||||||||||||||||||
(3) Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. | ||||||||||||||||||||
(4) Includes OTC derivatives that are centrally cleared in accordance with certain regulatory requirements. | ||||||||||||||||||||
Summary by Counterparty Credit Rating and Remaining Contract Maturity of the Fair Value of OTC Derivatives in a Gain Position | ' | |||||||||||||||||||
OTC Derivative Products—Trading Assets at September 30, 2013(1) | ||||||||||||||||||||
Cross-Maturity and Cash Collateral Netting(3) | Net Exposure Post-Cash Collateral | Net Exposure Post-Collateral | ||||||||||||||||||
Years to Maturity | ||||||||||||||||||||
Credit Rating(2) | Less than 1 | 3-Jan | 5-Mar | Over 5 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
AAA | $ | 337 | $ | 605 | $ | 1,043 | $ | 4,305 | $ | -4,010 | $ | 2,280 | $ | 1,926 | ||||||
AA | 2,283 | 2,015 | 2,655 | 10,281 | -11,877 | 5,357 | 3,533 | |||||||||||||
A | 6,865 | 9,504 | 10,419 | 21,414 | -40,171 | 8,031 | 6,367 | |||||||||||||
BBB | 2,886 | 3,498 | 3,660 | 15,220 | -17,861 | 7,403 | 5,625 | |||||||||||||
Non-investment grade | 2,697 | 3,007 | 1,672 | 3,156 | -5,211 | 5,321 | 2,542 | |||||||||||||
Total | $ | 15,068 | $ | 18,629 | $ | 19,449 | $ | 54,376 | $ | -79,130 | $ | 28,392 | $ | 19,993 | ||||||
(1) Fair values shown represent the Company's net exposure to counterparties related to the Company's OTC derivative products. Amounts include centrally cleared OTC derivatives. The table does not include exchange-traded derivatives and the effect of any related hedges utilized by the Company. | ||||||||||||||||||||
(2) Obligor credit ratings are determined by the Company's Credit Risk Management Department. | ||||||||||||||||||||
(3) Amounts represent the netting of receivable balances with payable balances for the same counterparty across maturity categories. Receivable and payable balances with the same counterparty in the same maturity category are netted within such maturity category, where appropriate. Cash collateral received is netted on a counterparty basis, provided legal right of offset exists. | ||||||||||||||||||||
OTC Derivative Products—Trading Assets at December 31, 2012(1) | ||||||||||||||||||||
Years to Maturity | Cross-Maturity and Cash Collateral Netting(3) | Net Exposure Post-Cash Collateral | Net Exposure Post-Collateral | |||||||||||||||||
Credit Rating(2) | Less than 1 | 3-Jan | 5-Mar | Over 5 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
AAA | $ | 353 | $ | 551 | $ | 1,299 | $ | 6,121 | $ | -4,851 | $ | 3,473 | $ | 3,088 | ||||||
AA | 2,125 | 3,635 | 2,958 | 10,270 | -12,761 | 6,227 | 4,428 | |||||||||||||
A | 6,643 | 9,596 | 14,228 | 29,729 | -50,722 | 9,474 | 7,638 | |||||||||||||
BBB | 2,673 | 3,970 | 3,704 | 18,586 | -21,713 | 7,220 | 5,754 | |||||||||||||
Non-investment grade | 2,091 | 2,855 | 2,142 | 4,538 | -6,696 | 4,930 | 2,725 | |||||||||||||
Total | $ | 13,885 | $ | 20,607 | $ | 24,331 | $ | 69,244 | $ | -96,743 | $ | 31,324 | $ | 23,633 | ||||||
_____________ | ||||||||||||||||||||
(1) Fair values shown represent the Company's net exposure to counterparties related to the Company's OTC derivative products. Amounts include centrally cleared OTC derivatives. The table does not include exchange-traded derivatives and the effect of any related hedges utilized by the Company. | ||||||||||||||||||||
(2) Obligor credit ratings are determined by the Company's Credit Risk Management Department. | ||||||||||||||||||||
(3) Amounts represent the netting of receivable balances with payable balances for the same counterparty across maturity categories. Receivable and payable balances with the same counterparty in the same maturity category are netted within such maturity category, where appropriate. Cash collateral received is netted on a counterparty basis, provided legal right of offset exists. | ||||||||||||||||||||
Fair Value of Derivative Instruments Designated and Not Designated as Accounting Hedges by Type of Derivative Contract on a Gross Basis | ' | |||||||||||||||||||
Derivative Assets | ||||||||||||||||||||
At September 30, 2013 | ||||||||||||||||||||
Fair Value | Notional | |||||||||||||||||||
Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | |||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivatives designated as accounting | ||||||||||||||||||||
hedges: | ||||||||||||||||||||
Interest rate contracts | $ | 5,586 | $ | 324 | $ | — | $ | 5,910 | $ | 58,287 | $ | 11,440 | $ | — | $ | 69,727 | ||||
Foreign exchange contracts | 180 | — | — | 180 | 5,853 | 137 | — | 5,990 | ||||||||||||
Total derivatives designated as | ||||||||||||||||||||
accounting hedges | 5,766 | 324 | — | 6,090 | 64,140 | 11,577 | — | 75,717 | ||||||||||||
Derivatives not designated as accounting | ||||||||||||||||||||
hedges(1): | ||||||||||||||||||||
Interest rate contracts | 304,345 | 280,067 | 376 | 584,788 | 6,551,567 | 12,716,148 | 1,255,543 | 20,523,258 | ||||||||||||
Credit contracts | 45,312 | 4,359 | — | 49,671 | 1,397,432 | 254,921 | — | 1,652,353 | ||||||||||||
Foreign exchange contracts | 55,800 | 138 | 24 | 55,962 | 1,844,721 | 5,719 | 8,521 | 1,858,961 | ||||||||||||
Equity contracts | 26,375 | — | 29,733 | 56,108 | 331,139 | — | 501,628 | 832,767 | ||||||||||||
Commodity contracts | 12,993 | — | 4,354 | 17,347 | 166,689 | — | 179,290 | 345,979 | ||||||||||||
Other | 36 | — | — | 36 | 2,432 | — | — | 2,432 | ||||||||||||
Total derivatives not designated | ||||||||||||||||||||
as accounting hedges | 444,861 | 284,564 | 34,487 | 763,912 | 10,293,980 | 12,976,788 | 1,944,982 | 25,215,750 | ||||||||||||
Total derivatives | $ | 450,627 | $ | 284,888 | $ | 34,487 | $ | 770,002 | $ | 10,358,120 | $ | 12,988,365 | $ | 1,944,982 | $ | 25,291,467 | ||||
Cash collateral netting | -53,748 | -2,869 | — | -56,617 | — | — | — | — | ||||||||||||
Counterparty netting | -369,149 | -281,278 | -27,520 | -677,947 | — | — | — | — | ||||||||||||
Total derivative assets | $ | 27,730 | $ | 741 | $ | 6,967 | $ | 35,438 | $ | 10,358,120 | $ | 12,988,365 | $ | 1,944,982 | $ | 25,291,467 | ||||
Derivative Liabilities | ||||||||||||||||||||
At September 30, 2013 | ||||||||||||||||||||
Fair Value | Notional | |||||||||||||||||||
Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | |||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivatives designated as accounting | ||||||||||||||||||||
hedges: | ||||||||||||||||||||
Interest rate contracts | $ | 514 | $ | 405 | $ | — | $ | 919 | $ | 2,647 | $ | 12,454 | $ | — | $ | 15,101 | ||||
Foreign exchange contracts | 289 | 1 | — | 290 | 9,563 | 226 | — | 9,789 | ||||||||||||
Total derivatives designated as | . | |||||||||||||||||||
accounting hedges | 803 | 406 | — | 1,209 | 12,210 | 12,680 | — | 24,890 | ||||||||||||
Derivatives not designated as accounting | ||||||||||||||||||||
hedges(1): | ||||||||||||||||||||
Interest rate contracts | 284,561 | 280,055 | 358 | 564,974 | 6,417,090 | 12,594,699 | 1,532,970 | 20,544,759 | ||||||||||||
Credit contracts | 43,093 | 4,483 | — | 47,576 | 1,257,814 | 244,523 | — | 1,502,337 | ||||||||||||
Foreign exchange contracts | 56,463 | 79 | 9 | 56,551 | 1,914,342 | 4,988 | 3,297 | 1,922,627 | ||||||||||||
Equity contracts | 30,241 | — | 32,992 | 63,233 | 337,877 | — | 505,050 | 842,927 | ||||||||||||
Commodity contracts | 12,409 | — | 4,741 | 17,150 | 154,196 | — | 159,652 | 313,848 | ||||||||||||
Other | 204 | — | — | 204 | 6,455 | — | — | 6,455 | ||||||||||||
Total derivatives not designated | ||||||||||||||||||||
as accounting hedges | 426,971 | 284,617 | 38,100 | 749,688 | 10,087,774 | 12,844,210 | 2,200,969 | 25,132,953 | ||||||||||||
Total derivatives | $ | 427,774 | $ | 285,023 | $ | 38,100 | $ | 750,897 | $ | 10,099,984 | $ | 12,856,890 | $ | 2,200,969 | $ | 25,157,843 | ||||
Cash collateral netting | -31,233 | -3,549 | — | -34,782 | — | — | — | — | ||||||||||||
Counterparty netting | -369,149 | -281,278 | -27,520 | -677,947 | — | — | — | — | ||||||||||||
Total derivative liabilities | $ | 27,392 | $ | 196 | $ | 10,580 | $ | 38,168 | $ | 10,099,984 | $ | 12,856,890 | $ | 2,200,969 | $ | 25,157,843 | ||||
_____________ | ||||||||||||||||||||
(1) Notional amounts include gross notionals related to open long and short futures contracts of $411 billion and $915 billion, respectively. The unsettled fair value on these futures contracts (excluded from the table above) of $951 million and $51 million is included in Customer and other receivables and Customer and other payables, respectively, on the condensed consolidated statements of financial condition. | ||||||||||||||||||||
(2) Includes OTC derivatives that are centrally cleared in accordance with certain regulatory requirements. | ||||||||||||||||||||
Derivative Assets | ||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||
Fair Value | Notional | |||||||||||||||||||
Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | |||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivatives designated as accounting | ||||||||||||||||||||
hedges: | ||||||||||||||||||||
Interest rate contracts | $ | 8,046 | $ | 301 | $ | — | $ | 8,347 | $ | 66,916 | $ | 8,199 | $ | — | $ | 75,115 | ||||
Foreign exchange contracts | 367 | — | — | 367 | 10,291 | — | — | 10,291 | ||||||||||||
Total derivatives designated as | ||||||||||||||||||||
accounting hedges | 8,413 | 301 | — | 8,714 | 77,207 | 8,199 | — | 85,406 | ||||||||||||
Derivatives not designated as accounting | ||||||||||||||||||||
hedges(1): | ||||||||||||||||||||
Interest rate contracts | 443,523 | 371,789 | 142 | 815,454 | 8,029,510 | 10,096,252 | 776,130 | 18,901,892 | ||||||||||||
Credit contracts | 65,168 | 3,099 | — | 68,267 | 1,734,907 | 197,879 | — | 1,932,786 | ||||||||||||
Foreign exchange contracts | 52,349 | 44 | 34 | 52,427 | 1,831,385 | 3,834 | 5,967 | 1,841,186 | ||||||||||||
Equity contracts | 19,916 | — | 18,684 | 38,600 | 258,484 | — | 329,216 | 587,700 | ||||||||||||
Commodity contracts | 15,201 | — | 5,445 | 20,646 | 164,842 | — | 176,714 | 341,556 | ||||||||||||
Other | 143 | — | — | 143 | 4,908 | — | — | 4,908 | ||||||||||||
Total derivatives not designated | ||||||||||||||||||||
as accounting hedges | 596,300 | 374,932 | 24,305 | 995,537 | 12,024,036 | 10,297,965 | 1,288,027 | 23,610,028 | ||||||||||||
Total derivatives | $ | 604,713 | $ | 375,233 | $ | 24,305 | $ | 1,004,251 | $ | 12,101,243 | $ | 10,306,164 | $ | 1,288,027 | $ | 23,695,434 | ||||
Cash collateral netting | -68,024 | -1,224 | — | -69,248 | — | — | — | — | ||||||||||||
Counterparty netting | -505,820 | -373,322 | -19,664 | -898,806 | — | — | — | — | ||||||||||||
Total derivative assets | $ | 30,869 | $ | 687 | $ | 4,641 | $ | 36,197 | $ | 12,101,243 | $ | 10,306,164 | $ | 1,288,027 | $ | 23,695,434 | ||||
Derivative Liabilities | ||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||
Fair Value | Notional | |||||||||||||||||||
Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | Bilateral OTC | Cleared OTC(2) | Exchange Traded | Total | |||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivatives designated as accounting | ||||||||||||||||||||
hedges: | ||||||||||||||||||||
Interest rate contracts | $ | 167 | $ | 1 | $ | — | $ | 168 | $ | 2,000 | $ | 660 | $ | — | $ | 2,660 | ||||
Foreign exchange contracts | 319 | — | — | 319 | 17,156 | — | — | 17,156 | ||||||||||||
Total derivatives designated as | ||||||||||||||||||||
accounting hedges | 486 | 1 | — | 487 | 19,156 | 660 | — | 19,816 | ||||||||||||
Derivatives not designated as accounting | ||||||||||||||||||||
hedges(1): | ||||||||||||||||||||
Interest rate contracts | 422,864 | 370,856 | 216 | 793,936 | 7,726,241 | 9,945,979 | 1,994,947 | 19,667,167 | ||||||||||||
Credit contracts | 60,420 | 4,074 | — | 64,494 | 1,645,464 | 222,343 | — | 1,867,807 | ||||||||||||
Foreign exchange contracts | 56,062 | 29 | 3 | 56,094 | 1,878,597 | 3,473 | 4,003 | 1,886,073 | ||||||||||||
Equity contracts | 22,239 | — | 19,631 | 41,870 | 257,340 | — | 329,858 | 587,198 | ||||||||||||
Commodity contracts | 15,886 | — | 5,945 | 21,831 | 169,189 | — | 155,912 | 325,101 | ||||||||||||
Other | 61 | — | — | 61 | 5,161 | — | — | 5,161 | ||||||||||||
Total derivatives not designated | ||||||||||||||||||||
as accounting hedges | 577,532 | 374,959 | 25,795 | 978,286 | 11,681,992 | 10,171,795 | 2,484,720 | 24,338,507 | ||||||||||||
Total derivatives | $ | 578,018 | $ | 374,960 | $ | 25,795 | $ | 978,773 | $ | 11,701,148 | $ | 10,172,455 | $ | 2,484,720 | $ | 24,358,323 | ||||
Cash collateral netting | -41,465 | -1,544 | — | -43,009 | — | — | — | — | ||||||||||||
Counterparty netting | -505,820 | -373,322 | -19,664 | -898,806 | — | — | — | — | ||||||||||||
Total derivative liabilities | $ | 30,733 | $ | 94 | $ | 6,131 | $ | 36,958 | $ | 11,701,148 | $ | 10,172,455 | $ | 2,484,720 | $ | 24,358,323 | ||||
_____________ | ||||||||||||||||||||
(1) Notional amounts include gross notionals related to open long and short futures contracts of $368 billion and $1,476 billion, respectively. The unsettled fair value on these futures contracts (excluded from the table above) of $1,073 million and $24 million is included in Customer and other receivables and Customer and other payables, respectively, on the condensed consolidated statements of financial condition. | ||||||||||||||||||||
(2) Includes OTC derivatives that are centrally cleared in accordance with certain regulatory requirements. | ||||||||||||||||||||
Summary of Gains or Losses Reported on Derivative Instruments Designated and Not Designated as Accounting Hedges | ' | |||||||||||||||||||
Gains (Losses) Recognized | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
Product Type | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Derivatives | $ | -302 | $ | 72 | $ | -3,421 | $ | 504 | ||||||||||||
Borrowings | 583 | 17 | 4,374 | -37 | ||||||||||||||||
Total | $ | 281 | $ | 89 | $ | 953 | $ | 467 | ||||||||||||
Gains Recognized in OCI (effective portion) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
Product Type | 2013 | 2012 | 2013 | 2012(1) | ||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Foreign exchange contracts(2) | $ | -193 | $ | -226 | $ | 346 | $ | -76 | ||||||||||||
Total | $ | -193 | $ | -226 | $ | 346 | $ | -76 | ||||||||||||
____________ | ||||||||||||||||||||
(1) A gain of $77 million, net of tax, related to net investment hedges was reclassified from other comprehensive income into income during the nine months ended September 30, 2012. The amount primarily related the reversal of amounts recorded in cumulative other comprehensive income due to the incorrect application of hedge accounting on certain derivative contracts (see above for further information). | ||||||||||||||||||||
(2) Losses of $34 million and $103 million were recognized in income related to amounts excluded from hedge effectiveness testing during the quarter and nine months ended September 30, 2013, respectively. Losses of $65 million and $193 million were recognized in income related to amounts excluded from hedge effectiveness testing during the quarter and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||
Gains (Losses) Recognized in Income(1)(2) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
Product Type | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Interest rate contracts | $ | -435 | $ | 227 | $ | -676 | $ | 977 | ||||||||||||
Credit contracts | -145 | -525 | 100 | 96 | ||||||||||||||||
Foreign exchange contracts | 594 | -129 | 2,775 | 310 | ||||||||||||||||
Equity contracts | -1,580 | -800 | -4,840 | -1,229 | ||||||||||||||||
Commodity contracts | 104 | -136 | 1,407 | 166 | ||||||||||||||||
Other contracts | -25 | -14 | -69 | 10 | ||||||||||||||||
Total derivative instruments | $ | -1,487 | $ | -1,377 | $ | -1,303 | $ | 330 | ||||||||||||
____________ | ||||||||||||||||||||
(1) Gains (losses) on derivative contracts not designated as hedges are primarily included in Trading in the condensed consolidated statements of income. | ||||||||||||||||||||
(2) Gains (losses) associated with certain derivative contracts that have physically settled are excluded from the table above. Gains (losses) on these contracts are reflected with the associated cash instruments, which are also included in Trading in the condensed consolidated statements of income. | ||||||||||||||||||||
Disclosure of Credit Derivatives | ' | |||||||||||||||||||
At September 30, 2013 | ||||||||||||||||||||
Maximum Potential Payout/Notional | ||||||||||||||||||||
Protection Sold | Protection Purchased | |||||||||||||||||||
Notional | Fair Value (Asset)/Liability | Notional | Fair Value (Asset)/Liability | |||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Single name credit default swaps | $ | 889,337 | $ | -3,488 | $ | 847,529 | $ | 3,121 | ||||||||||||
Index and basket credit default swaps | 516,283 | 205 | 424,669 | -302 | ||||||||||||||||
Tranched index and basket credit default swaps | 172,166 | -1,626 | 304,706 | -5 | ||||||||||||||||
Total | $ | 1,577,786 | $ | -4,909 | $ | 1,576,904 | $ | 2,814 | ||||||||||||
At December 31, 2012 | ||||||||||||||||||||
Maximum Potential Payout/Notional | ||||||||||||||||||||
Protection Sold | Protection Purchased | |||||||||||||||||||
Notional | Fair Value (Asset)/Liability | Notional | Fair Value (Asset)/Liability | |||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Single name credit default swaps | $ | 1,069,474 | $ | 2,889 | $ | 1,029,543 | $ | -2,456 | ||||||||||||
Index and basket credit default swaps | 551,630 | 5,664 | 454,800 | -5,124 | ||||||||||||||||
Tranched index and basket credit default swaps | 272,088 | 2,330 | 423,058 | -7,076 | ||||||||||||||||
Total | $ | 1,893,192 | $ | 10,883 | $ | 1,907,401 | $ | -14,656 | ||||||||||||
Protection Sold | ||||||||||||||||||||
Maximum Potential Payout/Notional | Fair Value | |||||||||||||||||||
Years to Maturity | (Asset)/ | |||||||||||||||||||
Credit Ratings of the Reference Obligation | Less than 1 | 3-Jan | 5-Mar | Over 5 | Total | Liability(1)(2) | ||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Single name credit default swaps: | ||||||||||||||||||||
AAA | $ | 1,641 | $ | 7,641 | $ | 13,025 | $ | 2,183 | $ | 24,490 | $ | -156 | ||||||||
AA | 10,016 | 21,583 | 27,395 | 5,350 | 64,344 | -707 | ||||||||||||||
A | 55,905 | 57,731 | 56,520 | 6,259 | 176,415 | -2,522 | ||||||||||||||
BBB | 119,444 | 123,063 | 129,910 | 23,905 | 396,322 | -1,904 | ||||||||||||||
Non-investment grade | 69,370 | 77,969 | 71,782 | 8,645 | 227,766 | 1,801 | ||||||||||||||
Total | 256,376 | 287,987 | 298,632 | 46,342 | 889,337 | -3,488 | ||||||||||||||
Index and basket credit default swaps(3): | ||||||||||||||||||||
AAA | 16,504 | 34,984 | 39,470 | 2,362 | 93,320 | -1,319 | ||||||||||||||
AA | 1,190 | 8,460 | 9,657 | 5,877 | 25,184 | -335 | ||||||||||||||
A | 1,452 | 3,609 | 8,614 | 23 | 13,698 | -43 | ||||||||||||||
BBB | 21,162 | 64,741 | 112,188 | 8,079 | 206,170 | -1,787 | ||||||||||||||
Non-investment grade | 58,014 | 93,750 | 162,213 | 36,100 | 350,077 | 2,063 | ||||||||||||||
Total | 98,322 | 205,544 | 332,142 | 52,441 | 688,449 | -1,421 | ||||||||||||||
Total credit default swaps sold | $ | 354,698 | $ | 493,531 | $ | 630,774 | $ | 98,783 | $ | 1,577,786 | $ | -4,909 | ||||||||
Other credit contracts(4)(5) | $ | 376 | $ | 10 | $ | 137 | $ | 1,165 | $ | 1,688 | $ | -171 | ||||||||
Total credit derivatives and | ||||||||||||||||||||
other credit contracts | $ | 355,074 | $ | 493,541 | $ | 630,911 | $ | 99,948 | $ | 1,579,474 | $ | -5,080 | ||||||||
_____________ | ||||||||||||||||||||
(1) Fair value amounts are shown on a gross basis prior to cash collateral or counterparty netting. | ||||||||||||||||||||
(2) Fair value amounts of certain credit default swaps where the Company sold protection have an asset carrying value because credit spreads of the underlying reference entity or entities tightened during the terms of the contracts. | ||||||||||||||||||||
(3) Credit ratings are calculated internally. | ||||||||||||||||||||
(4) Other credit contracts include CLNs, CDOs and credit default swaps that are considered hybrid instruments. | ||||||||||||||||||||
(5) Fair value amount shown represents the fair value of the hybrid instruments. | ||||||||||||||||||||
Protection Sold | ||||||||||||||||||||
Maximum Potential Payout/Notional | Fair Value | |||||||||||||||||||
Years to Maturity | (Asset)/ | |||||||||||||||||||
Credit Ratings of the Reference Obligation | Less than 1 | 3-Jan | 5-Mar | Over 5 | Total | Liability(1)(2) | ||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Single name credit default swaps: | ||||||||||||||||||||
AAA | $ | 2,368 | $ | 6,592 | $ | 19,848 | $ | 5,767 | $ | 34,575 | $ | -204 | ||||||||
AA | 10,984 | 16,804 | 34,280 | 7,193 | 69,261 | -325 | ||||||||||||||
A | 66,635 | 72,796 | 67,285 | 10,760 | 217,476 | -2,740 | ||||||||||||||
BBB | 124,662 | 145,462 | 142,714 | 34,396 | 447,234 | -492 | ||||||||||||||
Non-investment grade | 91,743 | 98,515 | 92,143 | 18,527 | 300,928 | 6,650 | ||||||||||||||
Total | 296,392 | 340,169 | 356,270 | 76,643 | 1,069,474 | 2,889 | ||||||||||||||
Index and basket credit default swaps(3): | ||||||||||||||||||||
AAA | 18,652 | 36,005 | 45,789 | 3,240 | 103,686 | -1,377 | ||||||||||||||
AA | 1,255 | 9,479 | 12,026 | 8,343 | 31,103 | -55 | ||||||||||||||
A | 2,684 | 5,423 | 5,440 | 125 | 13,672 | -155 | ||||||||||||||
BBB | 27,720 | 105,870 | 143,562 | 29,101 | 306,253 | -862 | ||||||||||||||
Non-investment grade | 97,389 | 86,703 | 153,858 | 31,054 | 369,004 | 10,443 | ||||||||||||||
Total | 147,700 | 243,480 | 360,675 | 71,863 | 823,718 | 7,994 | ||||||||||||||
Total credit default swaps sold | $ | 444,092 | $ | 583,649 | $ | 716,945 | $ | 148,506 | $ | 1,893,192 | $ | 10,883 | ||||||||
Other credit contracts(4)(5) | $ | 796 | $ | 125 | $ | 155 | $ | 1,323 | $ | 2,399 | $ | -745 | ||||||||
Total credit derivatives and other | ||||||||||||||||||||
credit contracts | $ | 444,888 | $ | 583,774 | $ | 717,100 | $ | 149,829 | $ | 1,895,591 | $ | 10,138 | ||||||||
_____________ | ||||||||||||||||||||
(1) Fair value amounts are shown on a gross basis prior to cash collateral or counterparty netting. | ||||||||||||||||||||
(2) Fair value amounts of certain credit default swaps where the Company sold protection have an asset carrying value because credit spreads of the underlying reference entity or entities tightened during the terms of the contracts. | ||||||||||||||||||||
(3) Credit ratings are calculated internally. | ||||||||||||||||||||
(4) Other credit contracts include CLNs, CDOs and credit default swaps that are considered hybrid instruments. | ||||||||||||||||||||
(5) Fair value amount shown represents the fair value of the hybrid instruments. | ||||||||||||||||||||
Commitments_Guarantees_and_Con1
Commitments, Guarantees and Contingencies (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Commitments, Guarantees and Contingencies [Abstract] | ' | |||||||||||||||
Commitments by Period of Expiration | ' | |||||||||||||||
Years to Maturity | ||||||||||||||||
Less | Total at | |||||||||||||||
than 1 | 3-Jan | 5-Mar | Over 5 | 30-Sep-13 | ||||||||||||
(dollars in millions) | ||||||||||||||||
Letters of credit and other financial guarantees | ||||||||||||||||
obtained to satisfy collateral requirements | $ | 682 | $ | 7 | $ | — | $ | 1 | $ | 690 | ||||||
Investment activities | 690 | 112 | 36 | 257 | 1,095 | |||||||||||
Primary lending commitments—investment grade(1) | 11,384 | 13,934 | 34,859 | 504 | 60,681 | |||||||||||
Primary lending commitments—non-investment grade(1) | 2,684 | 5,088 | 9,505 | 1,836 | 19,113 | |||||||||||
Secondary lending commitments(2) | 68 | 32 | 20 | 16 | 136 | |||||||||||
Commitments for secured lending transactions | 964 | — | — | 4 | 968 | |||||||||||
Forward starting reverse repurchase agreements and | ||||||||||||||||
securities borrowing agreements(3)(4) | 70,411 | — | — | — | 70,411 | |||||||||||
Commercial and residential mortgage-related commitments | 1,254 | 40 | 309 | 818 | 2,421 | |||||||||||
Underwriting commitments | 410 | — | — | — | 410 | |||||||||||
Other commitments | 2,284 | 376 | 206 | 79 | 2,945 | |||||||||||
Total | $ | 90,831 | $ | 19,589 | $ | 44,935 | $ | 3,515 | $ | 158,870 | ||||||
. | ||||||||||||||||
(1) This amount includes $44.9 billion of investment grade and $10.8 billion of non-investment grade unfunded commitments accounted for as held for investment and $5.9 billion of investment grade and $5.1 billion of non-investment grade unfunded commitments accounted for as held for sale at September 30, 2013. The remainder of these lending commitments is carried at fair value. | ||||||||||||||||
(2) These commitments are recorded at fair value within Trading assets and Trading liabilities in the condensed consolidated statements of financial condition (see Note 4). | ||||||||||||||||
(3) The Company enters into forward starting reverse repurchase and securities borrowing agreements (agreements that have a trade date at or prior to September 30, 2013 and settle subsequent to period-end) that are primarily secured by collateral from U.S. government agency securities and other sovereign government obligations. These agreements primarily settle within three business days and of the total amount at September 30, 2013, $66.5 billion settled within three business days. | ||||||||||||||||
(4) The Company also has a contingent obligation to provide financing to a clearinghouse through which it clears certain transactions. The financing is required only upon the default of a clearinghouse member. The financing takes the form of a reverse repurchase facility, with a maximum amount of approximately $1.9 billion. | ||||||||||||||||
Obligations under Guarantee Arrangements | ' | |||||||||||||||
Maximum Potential Payout/Notional | Carrying Amount (Asset)/ Liability | Collateral/ Recourse | ||||||||||||||
Years to Maturity | ||||||||||||||||
Type of Guarantee | Less than 1 | 3-Jan | 5-Mar | Over 5 | Total | |||||||||||
(dollars in millions) | ||||||||||||||||
Credit derivative contracts(1) | $ | 354,698 | $ | 493,531 | $ | 630,774 | $ | 98,783 | $ | 1,577,786 | $ | -4,909 | $ | — | ||
Other credit contracts | 376 | 10 | 137 | 1,165 | 1,688 | -171 | — | |||||||||
Non-credit derivative contracts(1) | 1,423,753 | 873,318 | 304,554 | 507,865 | 3,109,490 | 61,134 | — | |||||||||
Standby letters of credit and other | ||||||||||||||||
financial guarantees issued(2)(3) | 1,258 | 687 | 1,309 | 5,137 | 8,391 | -210 | 7,409 | |||||||||
Market value guarantees | — | 64 | 148 | 504 | 716 | 8 | 111 | |||||||||
Liquidity facilities | 2,220 | 148 | — | — | 2,368 | -4 | 3,143 | |||||||||
Whole loan sales representations | ||||||||||||||||
and warranties | — | — | — | 23,803 | 23,803 | 69 | — | |||||||||
Securitization representations and | ||||||||||||||||
warranties | — | — | — | 67,130 | 67,130 | 90 | — | |||||||||
General partner guarantees | 83 | 45 | 58 | 241 | 427 | 75 | — | |||||||||
_____________ | ||||||||||||||||
(1) Carrying amounts of derivative contracts are shown on a gross basis prior to cash collateral or counterparty netting. For further information on derivative contracts, see Note 11. | ||||||||||||||||
(2) Approximately $2.1 billion of standby letters of credit are also reflected in the “Commitments” table above in primary and secondary lending commitments. Standby letters of credit are recorded at fair value within Trading assets or Trading liabilities in the condensed consolidated statements of financial condition. | ||||||||||||||||
(3) Amounts include guarantees issued by consolidated real estate funds sponsored by the Company of approximately $13 million. These guarantees relate to obligations of the fund's investee entities, including guarantees related to capital expenditures and principal and interest debt payments. Accrued losses under these guarantees of approximately $4 million are reflected as a reduction of the carrying value of the related fund investments, which are reflected in Trading assets on the condensed consolidated statement of financial condition. | ||||||||||||||||
Regulatory_Requirements_Tables
Regulatory Requirements (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Regulatory Requirements | ' | |||||||||
Capital Measures | ' | |||||||||
30-Sep-13 | 31-Dec-12 | |||||||||
Balance | Ratio | Balance | Ratio | |||||||
(dollars in millions) | ||||||||||
Tier 1 common capital | $ | 48,696 | 12.60% | $ | 44,794 | 14.60% | ||||
Tier 1 capital | 58,903 | 15.30% | 54,360 | 17.70% | ||||||
Total capital | 62,055 | 16.10% | 56,626 | 18.50% | ||||||
RWAs | 385,664 | — | 306,746 | — | ||||||
Adjusted average total assets | 807,368 | — | 769,495 | — | ||||||
Tier 1 leverage | — | 7.30% | — | 7.10% | ||||||
Capital Information for U.S. Bank Operating Subsidiaries, Which Are U.S. Depository Institutions | ' | |||||||||
30-Sep-13 | 31-Dec-12 | |||||||||
Amount | Ratio | Amount | Ratio | |||||||
(dollars in millions) | ||||||||||
Total capital (to RWAs): | ||||||||||
MSBNA(1) | $ | 12,211 | 16.70% | $ | 11,509 | 16.70% | ||||
MSPBNA | $ | 2,154 | 29.60% | $ | 1,673 | 28.80% | ||||
Tier 1 capital (to RWAs): | ||||||||||
MSBNA(1) | $ | 10,549 | 14.50% | $ | 9,918 | 14.40% | ||||
MSPBNA | $ | 2,148 | 29.50% | $ | 1,665 | 28.70% | ||||
Tier 1 leverage: | ||||||||||
MSBNA | $ | 10,549 | 10.80% | $ | 9,918 | 13.30% | ||||
MSPBNA | $ | 2,148 | 10.60% | $ | 1,665 | 10.60% | ||||
____________ | ||||||||||
(1) MSBNA's Tier 1 capital ratio and Total capital ratio at December 31, 2012 were each reduced by approximately 50 basis points due to an approximate $2.0 billion adjustment to notional value of derivatives contracts, which resulted in an increase to MSBNA's RWAs by such amount. | ||||||||||
Redeemable_Noncontrolling_Inte1
Redeemable Noncontrolling Interests and Total Equity (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Redeemable Noncontrolling Interests and Total Equity | ' | |||||||||||||
Changes in Redeemable Noncontrolling Interest | ' | |||||||||||||
Balance at December 31, 2012 | $ | 4,309 | ||||||||||||
Net income applicable to redeemable noncontrolling interests | 222 | |||||||||||||
Distributions | -38 | |||||||||||||
Other | -11 | |||||||||||||
Carrying value of additional stake in Wealth Management JV purchased from Citi | -4,482 | |||||||||||||
Balance at September 30, 2013 | $ | — | ||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component | ' | |||||||||||||
Change in | ||||||||||||||
Foreign | Net Change | Net Unrealized | Pension, | |||||||||||
Currency | in | Gains (Losses) on | Postretirement | |||||||||||
Translation | Cash Flow | Securities | and Other Related | |||||||||||
Adjustments | Hedges | Available for Sale | Adjustments | Total | ||||||||||
Balance at June 30, 2013 | $ | -420 | $ | -3 | $ | -218 | $ | -528 | $ | -1,169 | ||||
Other comprehensive income (loss) before | ||||||||||||||
reclassifications | 117 | — | 37 | — | 154 | |||||||||
Amounts reclassified from accumulated | ||||||||||||||
other comprehensive income (loss) | — | 1 | -4 | 4 | 1 | |||||||||
Net other comprehensive income (loss) during | ||||||||||||||
the period | 117 | 1 | 33 | 4 | 155 | |||||||||
Balance at September 30, 2013 | $ | -303 | $ | -2 | $ | -185 | $ | -524 | $ | -1,014 | ||||
Change in | ||||||||||||||
Foreign | Net Change | Net Unrealized | Pension, | |||||||||||
Currency | in | Gains (Losses) on | Postretirement | |||||||||||
Translation | Cash Flow | Securities | and Other Related | |||||||||||
Adjustments | Hedges | Available for Sale | Adjustments | Total | ||||||||||
Balance at December 31, 2012 | $ | -123 | $ | -5 | $ | 151 | $ | -539 | $ | -516 | ||||
Other comprehensive income (loss) before | ||||||||||||||
reclassifications | -180 | — | -310 | 2 | -488 | |||||||||
Amounts reclassified from accumulated | ||||||||||||||
other comprehensive income (loss) | — | 3 | -26 | 13 | -10 | |||||||||
Net other comprehensive income (loss) during | ||||||||||||||
the period | -180 | 3 | -336 | 15 | -498 | |||||||||
Balance at September 30, 2013 | $ | -303 | $ | -2 | $ | -185 | $ | -524 | $ | -1,014 |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Calculation Of Basic And Diluted EPS | ' | ||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Basic EPS: | |||||||||||
Income (loss) from continuing operations | $ | 1,000 | $ | -958 | $ | 3,470 | $ | -97 | |||
Net gain (loss) from discontinued operations | 18 | 2 | -30 | 25 | |||||||
Net income (loss) | 1,018 | -956 | 3,440 | -72 | |||||||
Net income applicable to redeemable noncontrolling interests | — | 8 | 222 | 8 | |||||||
Net income applicable to nonredeemable noncontrolling interests | 112 | 59 | 370 | 446 | |||||||
Net income (loss) applicable to Morgan Stanley | 906 | -1,023 | 2,848 | -526 | |||||||
Less: Preferred dividends (Series A Preferred Stock) | -11 | -11 | -33 | -33 | |||||||
Less: Preferred dividends (Series C Preferred Stock) | -13 | -13 | -39 | -39 | |||||||
Less: Wealth Management JV redemption value adjustment | |||||||||||
(see Note 3) | — | — | -151 | — | |||||||
Less: Allocation of (earnings) loss to participating RSUs(1): | |||||||||||
From continuing operations | -2 | — | -6 | -1 | |||||||
Earnings (loss) applicable to Morgan Stanley common shareholders | $ | 880 | $ | -1,047 | $ | 2,619 | $ | -599 | |||
Weighted average common shares outstanding | 1,909 | 1,889 | 1,906 | 1,884 | |||||||
Earnings (loss) per basic common share: | |||||||||||
Income (loss) from continuing operations | $ | 0.45 | $ | -0.55 | $ | 1.39 | $ | -0.32 | |||
Net gain (loss) from discontinued operations | 0.01 | — | -0.02 | — | |||||||
Earnings (loss) per basic common share | $ | 0.46 | $ | -0.55 | $ | 1.37 | $ | -0.32 | |||
Diluted EPS: | |||||||||||
Earnings (loss) applicable to Morgan Stanley common shareholders | $ | 880 | $ | -1,047 | $ | 2,619 | $ | -599 | |||
Weighted average common shares outstanding | 1,909 | 1,889 | 1,906 | 1,884 | |||||||
Effect of dilutive securities: | |||||||||||
Stock options and RSUs(1) | 56 | — | 46 | — | |||||||
Weighted average common shares outstanding and common | |||||||||||
stock equivalents | 1,965 | 1,889 | 1,952 | 1,884 | |||||||
Earnings (loss) per diluted common share: | |||||||||||
Income (loss) from continuing operations | $ | 0.44 | $ | -0.55 | $ | 1.36 | $ | -0.32 | |||
Net gain (loss) from discontinued operations | 0.01 | — | -0.02 | — | |||||||
Earnings (loss) per diluted common share | $ | 0.45 | $ | -0.55 | $ | 1.34 | $ | -0.32 | |||
_____________ | |||||||||||
(1) RSUs that are considered participating securities participate in all of the earnings of the Company in the computation of basic EPS, and, therefore, such RSUs are not included as incremental shares in the diluted calculation. | |||||||||||
Antidilutive Securities Excluded From The Computation Of Diluted EPS | ' | ||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
Number of Antidilutive Securities Outstanding at End of Period: | 2013 | 2012 | 2013 | 2012 | |||||||
(shares in millions) | |||||||||||
RSUs and performance-based stock units | 4 | 87 | 4 | 87 | |||||||
Stock options | 32 | 44 | 32 | 44 | |||||||
Total | 36 | 131 | 36 | 131 |
Interest_Income_and_Interest_E1
Interest Income and Interest Expense (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Interest Income And Interest Expense | ' | ||||||||||
Schedule of Details of Interest Income and Interest Expense | ' | ||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
(dollars in millions) | |||||||||||
Interest income(1): | |||||||||||
Trading assets(2) | $ | 494 | $ | 648 | $ | 1,742 | $ | 2,101 | |||
Securities available for sale | 111 | 80 | 317 | 242 | |||||||
Loans | 299 | 161 | 790 | 418 | |||||||
Interest bearing deposits with banks | 38 | 44 | 89 | 95 | |||||||
Federal funds sold and securities purchased under agreements to | |||||||||||
resell and Securities borrowed | 50 | 64 | 213 | 223 | |||||||
Other | 319 | 382 | 980 | 1,165 | |||||||
Total interest income | $ | 1,311 | $ | 1,379 | $ | 4,131 | $ | 4,244 | |||
Interest expense(1): | |||||||||||
Deposits | $ | 44 | $ | 46 | $ | 126 | $ | 136 | |||
Commercial paper and other short-term borrowings | 4 | 11 | 18 | 35 | |||||||
Long-term debt | 957 | 1,256 | 2,834 | 3,597 | |||||||
Securities sold under agreements to repurchase and Securities | |||||||||||
loaned | 403 | 453 | 1,371 | 1,445 | |||||||
Other | -208 | -232 | -718 | -595 | |||||||
Total interest expense | $ | 1,200 | $ | 1,534 | $ | 3,631 | $ | 4,618 | |||
Net interest | $ | 111 | $ | -155 | $ | 500 | $ | -374 | |||
_____________ | |||||||||||
(1) Interest income and expense are recorded within the condensed consolidated statements of income depending on the nature of the instrument and related market conventions. When interest is included as a component of the instrument's fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. | |||||||||||
(2) Interest expense on Trading liabilities is reported as a reduction to Interest income on Trading assets. | |||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Employee Benefit Plans | ' | |||||||||
Components of Net Periodic Benefit Expense | ' | |||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
(dollars in millions) | ||||||||||
Service cost, benefits earned during the period | $ | 6 | $ | 7 | $ | 20 | $ | 22 | ||
Interest cost on projected benefit obligation | 40 | 40 | 118 | 122 | ||||||
Expected return on plan assets | -28 | -27 | -85 | -82 | ||||||
Net amortization of prior service costs | -3 | -3 | -10 | -10 | ||||||
Net amortization of actuarial loss | 9 | 7 | 29 | 21 | ||||||
Net periodic benefit expense | $ | 24 | $ | 24 | $ | 72 | $ | 73 |
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Selected Financial Information by Segments | ' | ||||||||||||||||
Three Months Ended September 30, 2013 | Institutional Securities | Wealth Management | Investment Management | Intersegment Eliminations | Total | ||||||||||||
(dollars in millions) | |||||||||||||||||
Total non-interest revenues | $ | 4,071 | $ | 2,988 | $ | 828 | $ | -66 | $ | 7,821 | |||||||
Interest income | 897 | 532 | 2 | -120 | 1,311 | ||||||||||||
Interest expense | 1,282 | 39 | 2 | -123 | 1,200 | ||||||||||||
Net interest | -385 | 493 | — | 3 | 111 | ||||||||||||
Net revenues(1) | $ | 3,686 | $ | 3,481 | $ | 828 | $ | -63 | $ | 7,932 | |||||||
Income from continuing operations before income | |||||||||||||||||
taxes | $ | 371 | $ | 668 | $ | 300 | $ | — | $ | 1,339 | |||||||
Provision for income taxes | — | 238 | 101 | — | 339 | ||||||||||||
Income from continuing operations | 371 | 430 | 199 | — | 1,000 | ||||||||||||
Discontinued operations(2): | |||||||||||||||||
Gain (loss) from discontinued operations | -7 | — | 8 | 15 | 16 | ||||||||||||
Provision for (benefit from) income taxes | -5 | — | — | 3 | -2 | ||||||||||||
Net gain (loss) on discontinued operations | -2 | — | 8 | 12 | 18 | ||||||||||||
Net income | 369 | 430 | 207 | 12 | 1,018 | ||||||||||||
Net income applicable to nonredeemable noncontrolling | |||||||||||||||||
interests | 48 | — | 64 | — | 112 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 321 | $ | 430 | $ | 143 | $ | 12 | $ | 906 | |||||||
Three Months Ended September 30, 2012 | Institutional Securities(3) | Wealth Management (3) | Investment Management | Intersegment Eliminations | Total | ||||||||||||
(dollars in millions) | |||||||||||||||||
Total non-interest revenues | $ | 2,031 | $ | 2,823 | $ | 635 | $ | -54 | $ | 5,435 | |||||||
Interest income | 1,017 | 476 | 2 | -116 | 1,379 | ||||||||||||
Interest expense | 1,567 | 77 | 6 | -116 | 1,534 | ||||||||||||
Net interest | -550 | 399 | -4 | — | -155 | ||||||||||||
Net revenues(1) | $ | 1,481 | $ | 3,222 | $ | 631 | $ | -54 | $ | 5,280 | |||||||
Income (loss) from continuing operations before income | |||||||||||||||||
taxes | $ | -1,928 | $ | 247 | $ | 198 | $ | — | $ | -1,483 | |||||||
Provision for (benefit from) income taxes | -662 | 93 | 44 | — | -525 | ||||||||||||
Income (loss) from continuing operations | -1,266 | 154 | 154 | — | -958 | ||||||||||||
Discontinued operations(2): | |||||||||||||||||
Gain (loss) from discontinued operations | -23 | — | 12 | — | -11 | ||||||||||||
Provision for (benefit from) income taxes | -8 | -5 | — | — | -13 | ||||||||||||
Net gain (loss) on discontinued operations | -15 | 5 | 12 | — | 2 | ||||||||||||
Net income (loss) | -1,281 | 159 | 166 | — | -956 | ||||||||||||
Net income applicable to redeemable noncontrolling | |||||||||||||||||
interests | — | 8 | — | — | 8 | ||||||||||||
Net income applicable to nonredeemable noncontrolling | |||||||||||||||||
interests | 8 | 1 | 50 | — | 59 | ||||||||||||
Net income (loss) applicable to Morgan Stanley | $ | -1,289 | $ | 150 | $ | 116 | $ | — | $ | -1,023 | |||||||
Nine Months Ended September 30, 2013 | Institutional Securities | Wealth Management | Investment Management | Intersegment Eliminations | Total | ||||||||||||
(dollars in millions) | |||||||||||||||||
Total non-interest revenues | $ | 12,970 | $ | 9,130 | $ | 2,151 | $ | -158 | $ | 24,093 | |||||||
Interest income | 2,950 | 1,531 | 7 | -357 | 4,131 | ||||||||||||
Interest expense | 3,799 | 179 | 12 | -359 | 3,631 | ||||||||||||
Net interest | -849 | 1,352 | -5 | 2 | 500 | ||||||||||||
Net revenues(1) | $ | 12,121 | $ | 10,482 | $ | 2,146 | $ | -156 | $ | 24,593 | |||||||
Income from continuing operations before income | |||||||||||||||||
taxes | $ | 2,129 | $ | 1,920 | $ | 647 | $ | — | $ | 4,696 | |||||||
Provision for income taxes | 348 | 687 | 191 | — | 1,226 | ||||||||||||
Income from continuing operations | 1,781 | 1,233 | 456 | — | 3,470 | ||||||||||||
Discontinued operations(2): | |||||||||||||||||
Gain (loss) from discontinued operations | -64 | -1 | 9 | 1 | -55 | ||||||||||||
Provision for (benefit from) income taxes | -25 | — | — | — | -25 | ||||||||||||
Net gain (loss) on discontinued operations | -39 | -1 | 9 | 1 | -30 | ||||||||||||
Net income | 1,742 | 1,232 | 465 | 1 | 3,440 | ||||||||||||
Net income applicable to redeemable noncontrolling | |||||||||||||||||
interests | 1 | 221 | — | — | 222 | ||||||||||||
Net income applicable to nonredeemable noncontrolling | |||||||||||||||||
interests | 234 | — | 136 | — | 370 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 1,507 | $ | 1,011 | $ | 329 | $ | 1 | $ | 2,848 | |||||||
Nine Months Ended September 30, 2012 | Institutional Securities(3) | Wealth Management (3) | Investment Management | Intersegment Eliminations | Total | ||||||||||||
(dollars in millions) | |||||||||||||||||
Total non-interest revenues | $ | 9,480 | $ | 8,530 | $ | 1,641 | $ | -131 | $ | 19,520 | |||||||
Interest income | 3,158 | 1,390 | 7 | -311 | 4,244 | ||||||||||||
Interest expense | 4,690 | 211 | 28 | -311 | 4,618 | ||||||||||||
Net interest | -1,532 | 1,179 | -21 | — | -374 | ||||||||||||
Net revenues(1) | $ | 7,948 | $ | 9,709 | $ | 1,620 | $ | -131 | $ | 19,146 | |||||||
Income (loss) from continuing operations before income | |||||||||||||||||
taxes | $ | -1,769 | $ | 1,060 | $ | 369 | $ | -4 | $ | -344 | |||||||
Provision for (benefit from) income taxes | -699 | 364 | 88 | — | -247 | ||||||||||||
Income (loss) from continuing operations | -1,070 | 696 | 281 | -4 | -97 | ||||||||||||
Discontinued operations(2): | |||||||||||||||||
Gain (loss) from discontinued operations | -41 | 93 | 13 | 3 | 68 | ||||||||||||
Provision for (benefit from) income taxes | 18 | 26 | — | -1 | 43 | ||||||||||||
Net gain (loss) on discontinued operations | -59 | 67 | 13 | 4 | 25 | ||||||||||||
Net income (loss) | -1,129 | 763 | 294 | — | -72 | ||||||||||||
Net income applicable to redeemable noncontrolling | |||||||||||||||||
interests | — | 8 | — | — | 8 | ||||||||||||
Net income applicable to nonredeemable noncontrolling | |||||||||||||||||
interests | 132 | 176 | 138 | — | 446 | ||||||||||||
Net income (loss) applicable to Morgan Stanley | $ | -1,261 | $ | 579 | $ | 156 | $ | — | $ | -526 | |||||||
(1) In certain management fee arrangements, the Company is entitled to receive performance-based fees (also referred to as incentive fees) when the return on assets under management exceeds certain benchmark returns or other performance targets. In such arrangements, performance fee revenue is accrued (or reversed) quarterly based on measuring account fund performance to date versus the performance benchmark stated in the investment management agreement. The amount of performance-based fee revenue at risk of reversing if fund performance falls below stated investment management agreement benchmarks was approximately $446 million at September 30, 2013 and approximately $205 million at December 31, 2012 (see Note 2 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K). | |||||||||||||||||
(2) See Notes 1 and 21 for discussion of discontinued operations. | |||||||||||||||||
(3) On January 1, 2013, the International Wealth Management business was transferred from the Wealth Management business segment to the Equity division within the Institutional Securities business segment. Accordingly, prior period amounts have been recast to reflect the International Wealth Management business as part of the Institutional Securities business segment. | |||||||||||||||||
Assets by Segments | ' | ||||||||||||||||
Total Assets(1) | Institutional Securities(2) | Wealth Management (2) | Investment Management | Total | |||||||||||||
(dollars in millions) | |||||||||||||||||
At September 30, 2013 | $ | 675,676 | $ | 149,156 | $ | 7,391 | $ | 832,223 | |||||||||
At December 31, 2012 | $ | 648,049 | $ | 125,565 | $ | 7,346 | $ | 780,960 | |||||||||
(1) Corporate assets have been fully allocated to the Company's business segments. | |||||||||||||||||
(2) Prior period amounts have been recast to reflect the transfer of the International Wealth Management business from the Wealth Management business segment to the Institutional Securities business segment. | |||||||||||||||||
Net Revenues by Geographic Area | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Net Revenues | 2013 | 2012 | 2013 | 2012 | |||||||||||||
(dollars in millions) | |||||||||||||||||
Americas | $ | 5,665 | $ | 4,744 | $ | 17,635 | $ | 14,632 | |||||||||
Europe, Middle East and Africa | 1,148 | 296 | 3,346 | 2,422 | |||||||||||||
Asia | 1,119 | 240 | 3,612 | 2,092 | |||||||||||||
Net revenues | $ | 7,932 | $ | 5,280 | $ | 24,593 | $ | 19,146 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Discontinued Operations | ' | |||||||||
Information Regarding Amounts Included In Discontinued Operations | ' | |||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
(dollars in millions) | ||||||||||
Net revenues(1): | ||||||||||
Saxon | $ | — | $ | -1 | $ | — | $ | 76 | ||
Quilter | — | — | -1 | 163 | ||||||
Other(2) | 15 | 21 | -3 | 35 | ||||||
$ | 15 | $ | 20 | $ | -4 | $ | 274 | |||
Pre-tax gain (loss) on discontinued operations(1): | ||||||||||
Saxon | $ | -14 | $ | -25 | $ | -53 | $ | -40 | ||
Quilter(3) | — | — | -1 | 97 | ||||||
Other(2) | 30 | 14 | -1 | 11 | ||||||
$ | 16 | $ | -11 | $ | -55 | $ | 68 | |||
_____________ | ||||||||||
(1) Amounts included eliminations of intersegment activity. | ||||||||||
(2) Amounts included in Other are related to the sale of the Company's retail asset management business, a principal investment and other. | ||||||||||
(3) Amount for the nine months ended September 30, 2012 included a pre-tax gain of approximately $108 million in connection with the sale of Quilter. |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (Wealth Management JV, USD $) | 9 Months Ended |
In Billions, unless otherwise specified | Sep. 30, 2012 |
Wealth Management JV | ' |
Consolidated Statements of Cash Flows | ' |
Nets assets related to delayed contribution in connection with the consummation of business combination | $1.10 |
Morgan_Stanley_Smith_Barney_Ho1
Morgan Stanley Smith Barney Holdings LLC. (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 28, 2013 | Sep. 17, 2012 | Sep. 30, 2013 | Jun. 28, 2013 | Jun. 27, 2013 | Sep. 30, 2012 | Sep. 16, 2012 | Oct. 31, 2013 | Jun. 28, 2013 | Oct. 31, 2012 | Sep. 30, 2013 | Jun. 27, 2013 | Sep. 16, 2012 | |
Citi | Wealth Management JV | Wealth Management JV | Wealth Management JV | Wealth Management JV | Wealth Management JV | Wealth Management JV | Wealth Management JV | Wealth Management JV | Wealth Management JV | Wealth Management JV | Wealth Management JV | Wealth Management JV | |||||
Subsequent Event [Member] | Class A Preferred Interests | Citi | Citi | Citi | Citi | ||||||||||||
Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of noncontrolling interests, percent | ' | ' | ' | ' | ' | 14.00% | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of noncontrolling interests, amount | ' | ' | ' | $1,825,000,000 | ' | $1,890,000,000 | $4,482,000,000 | $4,725,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Parent's ownership interest in noncontrolling interest | ' | ' | ' | ' | ' | 65.00% | ' | 100.00% | 65.00% | ' | 51.00% | ' | ' | ' | ' | ' | ' |
Noncontrolling owners' interest in nontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | 35.00% | 49.00% |
Transfer of deposits from joint venture partners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000,000 | ' | 5,400,000,000 | 21,000,000,000 | ' | ' |
Total transfer of deposits currently estimated | ' | ' | ' | ' | ' | ' | 35,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclass of nonredeemable noncontrolling interests to redeemable noncontrolling interests | ' | ' | ' | 4,296,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling interests redemption value adjustment | 0 | 0 | -151,000,000 | 0 | ' | ' | -151,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from redemption of preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,028,000,000 | ' | ' | ' | ' |
Repayments of Senior Debt | ' | ' | ' | ' | $880,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Disclosures_Narrati
Fair Value Disclosures (Narrative) (Details) (Recurring, Derivative and Other Contracts, USD $) | 3 Months Ended | 9 Months Ended |
In Billions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 |
Trading Assets | ' | ' |
Transfers Between Level 1 and Level 2 | ' | ' |
Derivative assets reclassified from Level 2 to Level 1 | $1.20 | $2.70 |
Derivative assets reclassified from Level 1 to Level 2 | 0.5 | 0.3 |
Trading Liabilities | ' | ' |
Transfers Between Level 1 and Level 2 | ' | ' |
Derivative liabilities reclassified from Level 2 to Level 1 | 1.5 | 2.6 |
Derivative liabilities reclassified from Level 1 to Level 2 | $0.50 | $0.30 |
Fair_Value_Disclosures_Assets_
Fair Value Disclosures (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Assets at Fair Value | ' | ' | ||
Netting | ($734,564) | [1] | ($968,054) | [1] |
Investments | 8,574 | 8,346 | ||
Trading assets, at fair value | 273,658 | 267,603 | ||
Securities available for sale | 46,866 | 39,869 | ||
Securities received as collateral | 16,042 | 14,278 | ||
Federal funds sold and securities purchased under agreement to resell | 868 | 621 | ||
Intangible assets | 8 | 7 | ||
Liabilities at Fair Value | ' | ' | ||
Deposits | 1,411 | 1,485 | ||
Commercial paper and other short-term borrowings | 1,623 | 725 | ||
Netting | -712,729 | [1] | -941,815 | [1] |
Total trading liabilities | 122,645 | 120,122 | ||
Obligation to return securities received as collateral, at fair value | 20,899 | 18,226 | ||
Securities sold under agreement to repurchase | 554 | 363 | ||
Other secured financings | 6,145 | 9,466 | ||
Long-term borrowings | 36,719 | 44,044 | ||
Recurring | ' | ' | ||
Assets at Fair Value | ' | ' | ||
U.S. government and agency securities | 61,872 | 54,015 | ||
Other sovereign government obligations | 31,683 | 43,162 | ||
Corporate and other debt | 44,856 | 49,157 | ||
Corporate equities | 87,827 | [2] | 69,427 | [2] |
Derivative and other contracts | 35,438 | 36,197 | ||
Netting | -734,564 | [3] | -968,054 | [3] |
Investments | 8,574 | 8,346 | ||
Physical commodities | 3,408 | 7,299 | ||
Trading assets, at fair value | 273,658 | 267,603 | ||
Securities available for sale | 46,866 | 39,869 | ||
Securities received as collateral | 16,042 | 14,278 | ||
Federal funds sold and securities purchased under agreement to resell | 868 | 621 | ||
Intangible assets | 8 | [4] | 7 | [5] |
Total assets measured at fair value | 337,442 | 322,378 | ||
Liabilities at Fair Value | ' | ' | ||
Deposits | 1,411 | 1,485 | ||
Commercial paper and other short-term borrowings | 1,623 | 725 | ||
U.S. government and agency securities | 19,600 | 21,620 | ||
Other sovereign government obligations | 23,843 | 29,614 | ||
Corporate and other debt | 8,686 | 5,054 | ||
Corporate equities | 32,348 | [2] | 26,876 | [2] |
Derivative and other contracts | 38,168 | 36,958 | ||
Netting | -712,729 | [3] | -941,815 | [3] |
Total trading liabilities | 122,645 | 120,122 | ||
Obligation to return securities received as collateral, at fair value | 20,899 | 18,226 | ||
Securities sold under agreement to repurchase | 554 | 363 | ||
Other secured financings | 6,145 | 9,466 | ||
Long-term borrowings | 36,719 | 44,044 | ||
Total liabilities measure at fair value | 189,996 | 194,431 | ||
Recurring | U.S. Treasury Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
U.S. government and agency securities | 38,461 | 24,676 | ||
Liabilities at Fair Value | ' | ' | ||
U.S. government and agency securities | 16,432 | 20,119 | ||
Recurring | U.S. Agency Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
U.S. government and agency securities | 23,411 | 29,339 | ||
Liabilities at Fair Value | ' | ' | ||
U.S. government and agency securities | 3,168 | 1,501 | ||
Recurring | State and Municipal Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 1,580 | 1,558 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 32 | 47 | ||
Recurring | Residential Mortgage-backed Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 2,615 | 1,484 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 4 | 4 | ||
Recurring | Commercial Mortgage-backed Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 1,493 | 1,579 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 4 | ' | ||
Recurring | Asset-backed Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 974 | 1,024 | ||
Recurring | Corporate Bonds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 17,399 | 19,063 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 8,196 | 4,119 | ||
Recurring | Collateralized Debt Obligations | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 1,643 | 2,636 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 6 | 328 | ||
Recurring | Loans and Lending Commitments | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 13,462 | 17,311 | ||
Recurring | Unfunded Lending Commitments | ' | ' | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 158 | 351 | ||
Recurring | Other Debt | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 5,690 | 4,502 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 286 | 205 | ||
Recurring | Interest Rate Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 590,698 | 823,801 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 565,893 | 794,104 | ||
Recurring | Credit Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 49,671 | 68,267 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 47,576 | 64,494 | ||
Recurring | Foreign Exchange Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 56,142 | 52,794 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 56,841 | 56,413 | ||
Recurring | Equity Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 56,108 | 38,600 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 63,233 | 41,870 | ||
Recurring | Commodity Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 17,347 | 20,646 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 17,150 | 21,831 | ||
Recurring | Other Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 36 | 143 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 204 | 61 | ||
Recurring | Private Equity Funds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 2,450 | 2,179 | ||
Recurring | Real Estate Funds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 1,529 | 1,376 | ||
Recurring | Hedge Funds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 804 | 934 | ||
Recurring | Principal Investments | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 3,039 | 3,101 | ||
Recurring | Other Investments | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 752 | 756 | ||
Recurring | Level 1 | ' | ' | ||
Assets at Fair Value | ' | ' | ||
U.S. government and agency securities | 40,483 | 26,113 | ||
Other sovereign government obligations | 24,605 | 37,669 | ||
Corporate and other debt | 0 | 0 | ||
Corporate equities | 86,385 | [2] | 68,072 | [2] |
Derivative and other contracts | 969 | 582 | ||
Netting | -5,321 | [3] | -4,740 | [3] |
Investments | 216 | 384 | ||
Physical commodities | 0 | 0 | ||
Trading assets, at fair value | 152,658 | 132,820 | ||
Securities available for sale | 19,854 | 14,466 | ||
Securities received as collateral | 15,981 | 14,232 | ||
Federal funds sold and securities purchased under agreement to resell | 0 | 0 | ||
Intangible assets | 0 | [4] | 0 | [5] |
Total assets measured at fair value | 188,493 | 161,518 | ||
Liabilities at Fair Value | ' | ' | ||
Deposits | 0 | 0 | ||
Commercial paper and other short-term borrowings | 0 | 0 | ||
U.S. government and agency securities | 19,473 | 21,492 | ||
Other sovereign government obligations | 21,468 | 27,583 | ||
Corporate and other debt | 0 | 0 | ||
Corporate equities | 31,842 | [2] | 25,216 | [2] |
Derivative and other contracts | 1,344 | 1,073 | ||
Netting | -5,321 | [3] | -4,740 | [3] |
Total trading liabilities | 74,127 | 75,364 | ||
Obligation to return securities received as collateral, at fair value | 20,829 | 18,179 | ||
Securities sold under agreement to repurchase | 0 | 0 | ||
Other secured financings | 0 | 0 | ||
Long-term borrowings | 0 | 0 | ||
Total liabilities measure at fair value | 94,956 | 93,543 | ||
Recurring | Level 1 | U.S. Treasury Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
U.S. government and agency securities | 38,453 | 24,662 | ||
Liabilities at Fair Value | ' | ' | ||
U.S. government and agency securities | 16,432 | 20,098 | ||
Recurring | Level 1 | U.S. Agency Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
U.S. government and agency securities | 2,030 | 1,451 | ||
Liabilities at Fair Value | ' | ' | ||
U.S. government and agency securities | 3,041 | 1,394 | ||
Recurring | Level 1 | State and Municipal Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Recurring | Level 1 | Residential Mortgage-backed Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Recurring | Level 1 | Commercial Mortgage-backed Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 0 | ' | ||
Recurring | Level 1 | Asset-backed Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Recurring | Level 1 | Corporate Bonds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Recurring | Level 1 | Collateralized Debt Obligations | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Recurring | Level 1 | Loans and Lending Commitments | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Recurring | Level 1 | Unfunded Lending Commitments | ' | ' | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Recurring | Level 1 | Other Debt | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Recurring | Level 1 | Interest Rate Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 2,129 | 446 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 2,527 | 533 | ||
Recurring | Level 1 | Credit Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 0 | 0 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 0 | 0 | ||
Recurring | Level 1 | Foreign Exchange Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 21 | 34 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 9 | 2 | ||
Recurring | Level 1 | Equity Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 1,254 | 760 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 893 | 748 | ||
Recurring | Level 1 | Commodity Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 2,886 | 4,082 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 3,236 | 4,530 | ||
Recurring | Level 1 | Other Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 0 | 0 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 0 | 0 | ||
Recurring | Level 1 | Private Equity Funds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 0 | 0 | ||
Recurring | Level 1 | Real Estate Funds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 0 | 0 | ||
Recurring | Level 1 | Hedge Funds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 0 | 0 | ||
Recurring | Level 1 | Principal Investments | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 29 | 185 | ||
Recurring | Level 1 | Other Investments | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 187 | 199 | ||
Recurring | Level 2 | ' | ' | ||
Assets at Fair Value | ' | ' | ||
U.S. government and agency securities | 21,389 | 27,902 | ||
Other sovereign government obligations | 7,076 | 5,487 | ||
Corporate and other debt | 38,481 | 41,421 | ||
Corporate equities | 1,199 | [2] | 1,067 | [2] |
Derivative and other contracts | 89,915 | 103,284 | ||
Netting | -664,134 | [3] | -883,733 | [3] |
Investments | 1,123 | 542 | ||
Physical commodities | 3,408 | 7,299 | ||
Trading assets, at fair value | 162,591 | 187,002 | ||
Securities available for sale | 27,012 | 25,403 | ||
Securities received as collateral | 61 | 46 | ||
Federal funds sold and securities purchased under agreement to resell | 868 | 621 | ||
Intangible assets | 0 | [4] | 0 | [5] |
Total assets measured at fair value | 190,532 | 213,072 | ||
Liabilities at Fair Value | ' | ' | ||
Deposits | 1,411 | 1,485 | ||
Commercial paper and other short-term borrowings | 1,620 | 706 | ||
U.S. government and agency securities | 127 | 128 | ||
Other sovereign government obligations | 2,375 | 2,031 | ||
Corporate and other debt | 8,664 | 4,778 | ||
Corporate equities | 496 | [2] | 1,655 | [2] |
Derivative and other contracts | 70,643 | 78,254 | ||
Netting | -664,134 | [3] | -883,733 | [3] |
Total trading liabilities | 82,305 | 86,846 | ||
Obligation to return securities received as collateral, at fair value | 70 | 47 | ||
Securities sold under agreement to repurchase | 404 | 212 | ||
Other secured financings | 5,885 | 9,060 | ||
Long-term borrowings | 34,406 | 41,255 | ||
Total liabilities measure at fair value | 126,101 | 139,611 | ||
Recurring | Level 2 | U.S. Treasury Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
U.S. government and agency securities | 8 | 14 | ||
Liabilities at Fair Value | ' | ' | ||
U.S. government and agency securities | 0 | 21 | ||
Recurring | Level 2 | U.S. Agency Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
U.S. government and agency securities | 21,381 | 27,888 | ||
Liabilities at Fair Value | ' | ' | ||
U.S. government and agency securities | 127 | 107 | ||
Recurring | Level 2 | State and Municipal Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 1,580 | 1,558 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 32 | 47 | ||
Recurring | Level 2 | Residential Mortgage-backed Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 2,525 | 1,439 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Recurring | Level 2 | Commercial Mortgage-backed Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 1,343 | 1,347 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 4 | ' | ||
Recurring | Level 2 | Asset-backed Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 875 | 915 | ||
Recurring | Level 2 | Corporate Bonds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 16,862 | 18,403 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 8,191 | 3,942 | ||
Recurring | Level 2 | Collateralized Debt Obligations | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 263 | 685 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 6 | 328 | ||
Recurring | Level 2 | Loans and Lending Commitments | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 9,364 | 12,617 | ||
Recurring | Level 2 | Unfunded Lending Commitments | ' | ' | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 154 | 305 | ||
Recurring | Level 2 | Other Debt | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 5,669 | 4,457 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 277 | 156 | ||
Recurring | Level 2 | Interest Rate Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 585,689 | 819,581 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 560,796 | 789,715 | ||
Recurring | Level 2 | Credit Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 46,729 | 63,234 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 45,344 | 61,283 | ||
Recurring | Level 2 | Foreign Exchange Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 55,992 | 52,729 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 56,668 | 56,021 | ||
Recurring | Level 2 | Equity Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 53,406 | 37,074 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 59,261 | 39,212 | ||
Recurring | Level 2 | Commodity Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 12,197 | 14,256 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 12,505 | 15,702 | ||
Recurring | Level 2 | Other Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 36 | 143 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 203 | 54 | ||
Recurring | Level 2 | Private Equity Funds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 1 | 0 | ||
Recurring | Level 2 | Real Estate Funds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 6 | 6 | ||
Recurring | Level 2 | Hedge Funds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 373 | 382 | ||
Recurring | Level 2 | Principal Investments | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 672 | 83 | ||
Recurring | Level 2 | Other Investments | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 71 | 71 | ||
Recurring | Level 3 | ' | ' | ||
Assets at Fair Value | ' | ' | ||
U.S. government and agency securities | 0 | 0 | ||
Other sovereign government obligations | 2 | 6 | ||
Corporate and other debt | 6,375 | 7,736 | ||
Corporate equities | 243 | [2] | 288 | [2] |
Derivative and other contracts | 4,006 | 4,965 | ||
Netting | -5,657 | [3] | -6,947 | [3] |
Investments | 7,235 | 7,420 | ||
Physical commodities | 0 | 0 | ||
Trading assets, at fair value | 17,861 | 20,415 | ||
Securities available for sale | 0 | 0 | ||
Securities received as collateral | 0 | 0 | ||
Federal funds sold and securities purchased under agreement to resell | 0 | 0 | ||
Intangible assets | 8 | [4] | 7 | [5] |
Total assets measured at fair value | 17,869 | 20,422 | ||
Liabilities at Fair Value | ' | ' | ||
Deposits | 0 | 0 | ||
Commercial paper and other short-term borrowings | 3 | 19 | ||
U.S. government and agency securities | 0 | 0 | ||
Other sovereign government obligations | 0 | 0 | ||
Corporate and other debt | 22 | 276 | ||
Corporate equities | 10 | [2] | 5 | [2] |
Derivative and other contracts | 3,798 | 4,026 | ||
Netting | -5,657 | [3] | -6,947 | [3] |
Total trading liabilities | 3,830 | 4,307 | ||
Obligation to return securities received as collateral, at fair value | 0 | 0 | ||
Securities sold under agreement to repurchase | 150 | 151 | ||
Other secured financings | 260 | 406 | ||
Long-term borrowings | 2,313 | 2,789 | ||
Total liabilities measure at fair value | 6,556 | 7,672 | ||
Recurring | Level 3 | U.S. Treasury Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
U.S. government and agency securities | 0 | 0 | ||
Liabilities at Fair Value | ' | ' | ||
U.S. government and agency securities | 0 | 0 | ||
Recurring | Level 3 | U.S. Agency Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
U.S. government and agency securities | 0 | 0 | ||
Liabilities at Fair Value | ' | ' | ||
U.S. government and agency securities | 0 | 0 | ||
Recurring | Level 3 | State and Municipal Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Recurring | Level 3 | Residential Mortgage-backed Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 90 | 45 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 4 | 4 | ||
Recurring | Level 3 | Commercial Mortgage-backed Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 150 | 232 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 0 | ' | ||
Recurring | Level 3 | Asset-backed Securities | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 99 | 109 | ||
Recurring | Level 3 | Corporate Bonds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 537 | 660 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 5 | 177 | ||
Recurring | Level 3 | Collateralized Debt Obligations | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 1,380 | 1,951 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 0 | 0 | ||
Recurring | Level 3 | Loans and Lending Commitments | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 4,098 | 4,694 | ||
Recurring | Level 3 | Unfunded Lending Commitments | ' | ' | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 4 | 46 | ||
Recurring | Level 3 | Other Debt | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Corporate and other debt | 21 | 45 | ||
Liabilities at Fair Value | ' | ' | ||
Corporate and other debt | 9 | 49 | ||
Recurring | Level 3 | Interest Rate Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 2,880 | 3,774 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 2,570 | 3,856 | ||
Recurring | Level 3 | Credit Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 2,942 | 5,033 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 2,232 | 3,211 | ||
Recurring | Level 3 | Foreign Exchange Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 129 | 31 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 164 | 390 | ||
Recurring | Level 3 | Equity Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 1,448 | 766 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 3,079 | 1,910 | ||
Recurring | Level 3 | Commodity Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 2,264 | 2,308 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 1,409 | 1,599 | ||
Recurring | Level 3 | Other Contracts | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Derivative and other contracts | 0 | 0 | ||
Liabilities at Fair Value | ' | ' | ||
Derivative and other contracts | 1 | 7 | ||
Recurring | Level 3 | Private Equity Funds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 2,449 | 2,179 | ||
Recurring | Level 3 | Real Estate Funds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 1,523 | 1,370 | ||
Recurring | Level 3 | Hedge Funds | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 431 | 552 | ||
Recurring | Level 3 | Principal Investments | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 2,338 | 2,833 | ||
Recurring | Level 3 | Other Investments | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Investments | 494 | 486 | ||
Recurring | Counterparty and Cash Collateral Netting | ' | ' | ||
Assets at Fair Value | ' | ' | ||
Netting | -59,452 | [3] | -72,634 | [3] |
Liabilities at Fair Value | ' | ' | ||
Netting | ($37,617) | [3] | ($46,395) | [3] |
[1] | Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default and where certain other criteria are met in accordance with applicable offsetting accounting guidance. | |||
[2] | The Company holds or sells short for trading purposes equity securities issued by entities in diverse industries and of varying size. | |||
[3] | For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Counterparty and Cash Collateral Netting.†For contracts with the same counterparty, counterparty netting among positions classified within the same level is included within that level. For further information on derivative instruments and hedging activities, see Note 11. | |||
[4] | Amount represents mortgage servicing rights (“MSRâ€) accounted for at fair value. See Note 7 for further information on MSRs. | |||
[5] | Amount represents MSRs accounted for at fair value. See Note 7 for further information on MSRs. |
Fair_Value_Disclosures_Changes
Fair Value Disclosures (Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (Recurring, Level 3, USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Securities Received as Collateral | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | ' | $0 | ' | $0 | ||||
Realized and Unrealized Gains (Losses) | ' | 0 | [1] | ' | 0 | [2] | ||
Purchases | ' | 0 | ' | 0 | ||||
Sales | ' | 0 | ' | 0 | ||||
Issuances | ' | 0 | ' | 0 | ||||
Settlements | ' | 0 | ' | 0 | ||||
Net Transfers | ' | 4 | ' | 4 | ||||
Ending balance | ' | 4 | ' | 4 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | ' | 0 | [3] | ' | 0 | [4] | ||
Intangible Assets | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 9 | 8 | 7 | 133 | ||||
Realized and Unrealized Gains (Losses) | 0 | [5] | 0 | [1] | 7 | [6] | -40 | [2] |
Purchases | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | -83 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | -1 | -2 | -6 | -4 | ||||
Net Transfers | 0 | 0 | 0 | 0 | ||||
Ending balance | 8 | 6 | 8 | 6 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | [7] | 0 | [3] | 3 | [8] | -6 | [4] |
Commercial Paper and Other Short-term Borrowings | ' | ' | ' | ' | ||||
Liabilities | ' | ' | ' | ' | ||||
Beginning balance | 0 | 2 | 19 | 2 | ||||
Realized and Unrealized Gains (Losses) | 0 | [5] | 0 | [1] | 0 | [6] | -2 | [2] |
Purchases | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | -1 | -2 | ||||
Net Transfers | 3 | 12 | -15 | 12 | ||||
Ending balance | 3 | 14 | 3 | 14 | ||||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 0 | [7] | 0 | [3] | 0 | [8] | -1 | [4] |
Obligation to Return Securities Received as Collateral | ' | ' | ' | ' | ||||
Liabilities | ' | ' | ' | ' | ||||
Beginning balance | ' | 0 | ' | 0 | ||||
Realized and Unrealized Gains (Losses) | ' | 0 | [1] | ' | 0 | [2] | ||
Purchases | ' | 0 | ' | 0 | ||||
Sales | ' | 0 | ' | 0 | ||||
Issuances | ' | 0 | ' | 0 | ||||
Settlements | ' | 0 | ' | 0 | ||||
Net Transfers | ' | 20 | ' | 20 | ||||
Ending balance | ' | 20 | ' | 20 | ||||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | ' | 0 | [3] | ' | 0 | [4] | ||
Securities Sold under Agreements to Repurchase | ' | ' | ' | ' | ||||
Liabilities | ' | ' | ' | ' | ||||
Beginning balance | 148 | 185 | 151 | 340 | ||||
Realized and Unrealized Gains (Losses) | -2 | [5] | -13 | [1] | 1 | [6] | -10 | [2] |
Purchases | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | 0 | 0 | 0 | -152 | ||||
Ending balance | 150 | 198 | 150 | 198 | ||||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | -2 | [7] | -13 | [3] | 1 | [8] | -10 | [4] |
Other Secured Financings | ' | ' | ' | ' | ||||
Liabilities | ' | ' | ' | ' | ||||
Beginning balance | 256 | 470 | 406 | 570 | ||||
Realized and Unrealized Gains (Losses) | -5 | [5] | -22 | [1] | 23 | [6] | -33 | [2] |
Purchases | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 13 | 55 | ||||
Settlements | -1 | -76 | -136 | -220 | ||||
Net Transfers | 0 | 0 | 0 | -22 | ||||
Ending balance | 260 | 416 | 260 | 416 | ||||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | -5 | [7] | -22 | [3] | 16 | [8] | -33 | [4] |
Long-term Borrowings | ' | ' | ' | ' | ||||
Liabilities | ' | ' | ' | ' | ||||
Beginning balance | 2,705 | 2,210 | 2,789 | 1,603 | ||||
Realized and Unrealized Gains (Losses) | -98 | [5] | -215 | [1] | -87 | [6] | -444 | [2] |
Purchases | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Issuances | 188 | 259 | 875 | 585 | ||||
Settlements | -344 | -223 | -468 | -181 | ||||
Net Transfers | -334 | -7 | -970 | 3 | ||||
Ending balance | 2,313 | 2,454 | 2,313 | 2,454 | ||||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | -89 | [7] | -231 | [3] | -89 | [8] | -429 | [4] |
Trading Assets | U.S. Agency Securities | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | ' | ' | ' | 8 | ||||
Realized and Unrealized Gains (Losses) | ' | ' | ' | 0 | [2] | |||
Purchases | ' | ' | ' | 0 | ||||
Sales | ' | ' | ' | -7 | ||||
Issuances | ' | ' | ' | 0 | ||||
Settlements | ' | ' | ' | 0 | ||||
Net Transfers | ' | ' | ' | -1 | ||||
Ending balance | ' | 0 | ' | 0 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | ' | ' | ' | 0 | [4] | |||
Trading Assets | Other Sovereign Government Obligations | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 4 | 1 | 6 | 119 | ||||
Realized and Unrealized Gains (Losses) | 0 | [5] | 0 | [1] | 0 | [6] | 0 | [2] |
Purchases | 2 | 1 | 3 | 2 | ||||
Sales | -4 | 0 | -8 | -118 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | 0 | 1 | 1 | 0 | ||||
Ending balance | 2 | 3 | 2 | 3 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | [7] | 0 | [3] | 0 | [8] | 0 | [4] |
Trading Assets | Corporate and Other Debt | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 7,405 | 10,301 | 7,736 | 12,032 | ||||
Realized and Unrealized Gains (Losses) | 27 | [5] | 341 | [1] | 65 | [6] | 285 | [2] |
Purchases | 1,013 | 1,773 | 2,728 | 4,318 | ||||
Sales | -489 | -785 | -2,445 | -3,346 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | -1,334 | -773 | -1,903 | -2,119 | ||||
Net Transfers | -247 | -75 | 194 | -388 | ||||
Ending balance | 6,375 | 10,782 | 6,375 | 10,782 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | -45 | [7] | 334 | [3] | -157 | [8] | 3 | [4] |
Trading Assets | Corporate and Other Debt | State and Municipal Securities | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | ' | 3 | ' | 0 | ||||
Realized and Unrealized Gains (Losses) | ' | 1 | [1] | ' | 2 | [2] | ||
Purchases | ' | 0 | ' | 0 | ||||
Sales | ' | -2 | ' | -3 | ||||
Issuances | ' | 0 | ' | 0 | ||||
Settlements | ' | 0 | ' | 0 | ||||
Net Transfers | ' | 0 | ' | 3 | ||||
Ending balance | ' | 2 | ' | 2 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | ' | 0 | [3] | ' | 0 | [4] | ||
Trading Assets | Corporate and Other Debt | Residential Mortgage-backed Securities | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 19 | 24 | 45 | 494 | ||||
Realized and Unrealized Gains (Losses) | -2 | [5] | 1 | [1] | 29 | [6] | -24 | [2] |
Purchases | 72 | 1 | 85 | 4 | ||||
Sales | -3 | -4 | -45 | -267 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | 4 | -2 | -24 | -187 | ||||
Ending balance | 90 | 20 | 90 | 20 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | -3 | [7] | -1 | [3] | 8 | [8] | -36 | [4] |
Trading Assets | Corporate and Other Debt | Commercial Mortgage-backed Securities | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 181 | 256 | 232 | 134 | ||||
Realized and Unrealized Gains (Losses) | -2 | [5] | 13 | [1] | 6 | [6] | 36 | [2] |
Purchases | 39 | 7 | 78 | 123 | ||||
Sales | -61 | -54 | -166 | -65 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | -99 | 0 | -100 | ||||
Net Transfers | -7 | 3 | 0 | -2 | ||||
Ending balance | 150 | 126 | 150 | 126 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 5 | [7] | 8 | [3] | 7 | [8] | 28 | [4] |
Trading Assets | Corporate and Other Debt | Asset-backed Securities | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 108 | 9 | 109 | 31 | ||||
Realized and Unrealized Gains (Losses) | 0 | [5] | 1 | [1] | 1 | [6] | 1 | [2] |
Purchases | 13 | 0 | 4 | 9 | ||||
Sales | -23 | 0 | -15 | -31 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | 1 | 0 | 0 | 0 | ||||
Ending balance | 99 | 10 | 99 | 10 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | [7] | 1 | [3] | 0 | [8] | 0 | [4] |
Trading Assets | Corporate and Other Debt | Corporate Bonds | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 509 | 745 | 660 | 675 | ||||
Realized and Unrealized Gains (Losses) | 43 | [5] | 50 | [1] | 64 | [6] | 8 | [2] |
Purchases | 76 | 86 | 327 | 367 | ||||
Sales | -79 | -157 | -462 | -314 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | -12 | 0 | ||||
Net Transfers | -12 | 33 | -40 | 21 | ||||
Ending balance | 537 | 757 | 537 | 757 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 36 | [7] | 51 | [3] | 15 | [8] | -1 | [4] |
Trading Assets | Corporate and Other Debt | Collateralized Debt Obligations | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 1,333 | 1,457 | 1,951 | 980 | ||||
Realized and Unrealized Gains (Losses) | 60 | [5] | 92 | [1] | 276 | [6] | 193 | [2] |
Purchases | 269 | 569 | 612 | 1,215 | ||||
Sales | -206 | -200 | -1,405 | -321 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | -55 | 0 | -53 | 0 | ||||
Net Transfers | -21 | 113 | -1 | -36 | ||||
Ending balance | 1,380 | 2,031 | 1,380 | 2,031 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 28 | [7] | 127 | [3] | 118 | [8] | 147 | [4] |
Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 5,243 | 7,794 | 4,694 | 9,590 | ||||
Realized and Unrealized Gains (Losses) | -72 | [5] | 183 | [1] | -308 | [6] | 54 | [2] |
Purchases | 530 | 1,098 | 1,607 | 2,592 | ||||
Sales | -112 | -366 | -316 | -2,205 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | -1,279 | -674 | -1,838 | -2,019 | ||||
Net Transfers | -212 | -210 | 259 | -187 | ||||
Ending balance | 4,098 | 7,825 | 4,098 | 7,825 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | -111 | [7] | 148 | [3] | -306 | [8] | -144 | [4] |
Trading Assets | Corporate and Other Debt | Other Debt | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 12 | 13 | 45 | 128 | ||||
Realized and Unrealized Gains (Losses) | 0 | [5] | 0 | [1] | -3 | [6] | 15 | [2] |
Purchases | 14 | 12 | 15 | 8 | ||||
Sales | -5 | -2 | -36 | -140 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | 0 | -12 | 0 | 0 | ||||
Ending balance | 21 | 11 | 21 | 11 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | [7] | 0 | [3] | 1 | [8] | 9 | [4] |
Trading Assets | Corporate Equities | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 256 | 482 | 288 | 417 | ||||
Realized and Unrealized Gains (Losses) | -25 | [5] | 9 | [1] | -36 | [6] | -2 | [2] |
Purchases | 38 | 48 | 142 | 153 | ||||
Sales | -20 | -95 | -164 | -184 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | -6 | -73 | 13 | -13 | ||||
Ending balance | 243 | 371 | 243 | 371 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | -3 | [7] | 9 | [3] | -4 | [8] | 3 | [4] |
Trading Assets | Net Derivative and Other Contracts | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 96 | [9] | 3,183 | [10] | 939 | [10] | 4,523 | [10] |
Realized and Unrealized Gains (Losses) | -255 | [5],[9] | -1,260 | [1],[10] | -986 | [10],[6] | -1,867 | [10],[2] |
Purchases | 151 | [9] | 164 | [10] | 357 | [10] | 433 | [10] |
Sales | 0 | [9] | -12 | [10] | -1 | [10] | -5 | [10] |
Issuances | -309 | [9] | -87 | [10] | -615 | [10] | -566 | [10] |
Settlements | -7 | [9] | -58 | [10] | -79 | [10] | -606 | [10] |
Net Transfers | 532 | [9] | -387 | [10] | 593 | [10] | -369 | [10] |
Ending balance | 208 | [10],[9] | 1,543 | [10] | 208 | [10],[9] | 1,543 | [10] |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | -689 | [7],[9] | -1,084 | [10],[3] | -1,175 | [10],[8] | -2,010 | [10],[4] |
Trading Assets | Net Derivative and Other Contracts | Interest Rate Contracts | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 16 | [9] | -172 | [10] | -82 | [10] | 420 | [10] |
Realized and Unrealized Gains (Losses) | 262 | [5],[9] | -282 | [1],[10] | 237 | [10],[6] | -338 | [10],[2] |
Purchases | 4 | [9] | 5 | [10] | 10 | [10] | 98 | [10] |
Sales | 0 | [9] | 0 | [10] | 0 | [10] | 0 | [10] |
Issuances | -72 | [9] | -10 | [10] | -86 | [10] | -15 | [10] |
Settlements | 11 | [9] | 187 | [10] | 185 | [10] | 7 | [10] |
Net Transfers | 89 | [9] | 173 | [10] | 46 | [10] | -271 | [10] |
Ending balance | 310 | [10],[9] | -99 | [10] | 310 | [10],[9] | -99 | [10] |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 111 | [7],[9] | -76 | [10],[3] | 157 | [10],[8] | -85 | [10],[4] |
Trading Assets | Net Derivative and Other Contracts | Credit Contracts | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 685 | [9] | 3,842 | [10] | 1,822 | [10] | 5,814 | [10] |
Realized and Unrealized Gains (Losses) | -259 | [5],[9] | -791 | [1],[10] | -1,133 | [10],[6] | -1,733 | [10],[2] |
Purchases | 41 | [9] | 22 | [10] | 184 | [10] | 46 | [10] |
Sales | 0 | [9] | 0 | [10] | 0 | [10] | 0 | [10] |
Issuances | -46 | [9] | -17 | [10] | -278 | [10] | -421 | [10] |
Settlements | -146 | [9] | -266 | [10] | -369 | [10] | -533 | [10] |
Net Transfers | 435 | [9] | -167 | [10] | 484 | [10] | -550 | [10] |
Ending balance | 710 | [10],[9] | 2,623 | [10] | 710 | [10],[9] | 2,623 | [10] |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | -448 | [7],[9] | -870 | [10],[3] | -1,187 | [10],[8] | -2,048 | [10],[4] |
Trading Assets | Net Derivative and Other Contracts | Foreign Exchange Contracts | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | -96 | [9] | -224 | [10] | -359 | [10] | 43 | [10] |
Realized and Unrealized Gains (Losses) | 6 | [5],[9] | -101 | [1],[10] | 117 | [10],[6] | -163 | [10],[2] |
Purchases | 0 | [9] | 0 | [10] | 0 | [10] | 0 | [10] |
Sales | 0 | [9] | 0 | [10] | 0 | [10] | 0 | [10] |
Issuances | 0 | [9] | 0 | [10] | 0 | [10] | 0 | [10] |
Settlements | 61 | [9] | -12 | [10] | 215 | [10] | -142 | [10] |
Net Transfers | -6 | [9] | -74 | [10] | -8 | [10] | -149 | [10] |
Ending balance | -35 | [10],[9] | -411 | [10] | -35 | [10],[9] | -411 | [10] |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 6 | [7],[9] | -102 | [10],[3] | 106 | [10],[8] | -221 | [10],[4] |
Trading Assets | Net Derivative and Other Contracts | Equity Contracts | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | -1,284 | [9] | -1,173 | [10] | -1,144 | [10] | -1,234 | [10] |
Realized and Unrealized Gains (Losses) | -309 | [5],[9] | -2 | [1],[10] | -293 | [10],[6] | 156 | [10],[2] |
Purchases | 102 | [9] | 126 | [10] | 123 | [10] | 272 | [10] |
Sales | 0 | [9] | -12 | [10] | -1 | [10] | -5 | [10] |
Issuances | -190 | [9] | -57 | [10] | -232 | [10] | -122 | [10] |
Settlements | 39 | [9] | 32 | [10] | -156 | [10] | -205 | [10] |
Net Transfers | 11 | [9] | -249 | [10] | 72 | [10] | -197 | [10] |
Ending balance | -1,631 | [10],[9] | -1,335 | [10] | -1,631 | [10],[9] | -1,335 | [10] |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | -429 | [7],[9] | -8 | [10],[3] | -369 | [10],[8] | 143 | [10],[4] |
Trading Assets | Net Derivative and Other Contracts | Commodity Contracts | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 781 | [9] | 937 | [10] | 709 | [10] | 570 | [10] |
Realized and Unrealized Gains (Losses) | 45 | [5],[9] | -84 | [1],[10] | 90 | [10],[6] | 152 | [10],[2] |
Purchases | 4 | [9] | 11 | [10] | 40 | [10] | 17 | [10] |
Sales | 0 | [9] | 0 | [10] | 0 | [10] | 0 | [10] |
Issuances | -1 | [9] | -3 | [10] | -19 | [10] | -8 | [10] |
Settlements | 23 | [9] | -5 | [10] | 36 | [10] | 29 | [10] |
Net Transfers | 3 | [9] | -88 | [10] | -1 | [10] | 8 | [10] |
Ending balance | 855 | [10],[9] | 768 | [10] | 855 | [10],[9] | 768 | [10] |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 73 | [7],[9] | -28 | [10],[3] | 124 | [10],[8] | 145 | [10],[4] |
Trading Assets | Net Derivative and Other Contracts | Other Contracts | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | -6 | [9] | -27 | [10] | -7 | [10] | -1,090 | [10] |
Realized and Unrealized Gains (Losses) | 0 | [5],[9] | 0 | [1],[10] | -4 | [10],[6] | 59 | [10],[2] |
Purchases | 0 | [9] | 0 | [10] | 0 | [10] | 0 | [10] |
Sales | 0 | [9] | 0 | [10] | 0 | [10] | 0 | [10] |
Issuances | 0 | [9] | 0 | [10] | 0 | [10] | 0 | [10] |
Settlements | 5 | [9] | 6 | [10] | 10 | [10] | 238 | [10] |
Net Transfers | 0 | [9] | 18 | [10] | 0 | [10] | 790 | [10] |
Ending balance | -1 | [10],[9] | -3 | [10] | -1 | [10],[9] | -3 | [10] |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | -2 | [7],[9] | 0 | [10],[3] | -6 | [10],[8] | 56 | [10],[4] |
Trading Assets | Investments | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 7,322 | 7,454 | 7,420 | 7,283 | ||||
Realized and Unrealized Gains (Losses) | 477 | [5] | 230 | [1] | 856 | [6] | 318 | [2] |
Purchases | 62 | 233 | 312 | 776 | ||||
Sales | -292 | -189 | -923 | -586 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | -334 | -62 | -430 | -125 | ||||
Ending balance | 7,235 | 7,666 | 7,235 | 7,666 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 451 | [7] | 205 | [3] | 917 | [8] | 311 | [4] |
Trading Assets | Investments | Private Equity Funds | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 2,286 | 2,005 | 2,179 | 1,936 | ||||
Realized and Unrealized Gains (Losses) | 213 | [5] | 162 | [1] | 432 | [6] | 176 | [2] |
Purchases | 24 | 127 | 96 | 271 | ||||
Sales | -74 | -48 | -258 | -138 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | 0 | 0 | 0 | 1 | ||||
Ending balance | 2,449 | 2,246 | 2,449 | 2,246 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 163 | [7] | 153 | [3] | 409 | [8] | 134 | [4] |
Trading Assets | Investments | Real Estate Funds | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 1,422 | 1,326 | 1,370 | 1,213 | ||||
Realized and Unrealized Gains (Losses) | 159 | [5] | 44 | [1] | 287 | [6] | 107 | [2] |
Purchases | 18 | 20 | 61 | 137 | ||||
Sales | -76 | -36 | -195 | -104 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | 0 | 0 | 0 | 1 | ||||
Ending balance | 1,523 | 1,354 | 1,523 | 1,354 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 196 | [7] | 30 | [3] | 402 | [8] | 179 | [4] |
Trading Assets | Investments | Hedge Funds | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 407 | 533 | 552 | 696 | ||||
Realized and Unrealized Gains (Losses) | 5 | [5] | 19 | [1] | 5 | [6] | 26 | [2] |
Purchases | 7 | 42 | 46 | 61 | ||||
Sales | -17 | -46 | -154 | -135 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | 29 | 16 | -18 | -84 | ||||
Ending balance | 431 | 564 | 431 | 564 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 5 | [7] | 14 | [3] | 6 | [8] | 19 | [4] |
Trading Assets | Investments | Principal Investments | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 2,822 | 3,047 | 2,833 | 2,937 | ||||
Realized and Unrealized Gains (Losses) | 84 | [5] | 1 | [1] | 96 | [6] | 25 | [2] |
Purchases | 10 | 33 | 106 | 267 | ||||
Sales | -125 | -50 | -286 | -199 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | -453 | -5 | -411 | -4 | ||||
Ending balance | 2,338 | 3,026 | 2,338 | 3,026 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 71 | [7] | 3 | [3] | 63 | [8] | -6 | [4] |
Trading Assets | Investments | Other Investments | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | 385 | 543 | 486 | 501 | ||||
Realized and Unrealized Gains (Losses) | 16 | [5] | 4 | [1] | 36 | [6] | -16 | [2] |
Purchases | 3 | 11 | 3 | 40 | ||||
Sales | 0 | -9 | -30 | -10 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | 90 | -73 | -1 | -39 | ||||
Ending balance | 494 | 476 | 494 | 476 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 16 | [7] | 5 | [3] | 37 | [8] | -15 | [4] |
Trading Assets | Physical Commodities | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Beginning balance | ' | ' | ' | 46 | ||||
Realized and Unrealized Gains (Losses) | ' | ' | ' | 0 | [2] | |||
Purchases | ' | ' | ' | 0 | ||||
Sales | ' | ' | ' | 0 | ||||
Issuances | ' | ' | ' | 0 | ||||
Settlements | ' | ' | ' | -46 | ||||
Net Transfers | ' | ' | ' | 0 | ||||
Ending balance | ' | 0 | ' | 0 | ||||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | ' | ' | ' | 0 | [4] | |||
Trading Liabilities | Other Sovereign Government Obligations | ' | ' | ' | ' | ||||
Liabilities | ' | ' | ' | ' | ||||
Beginning balance | ' | ' | ' | 8 | ||||
Realized and Unrealized Gains (Losses) | ' | ' | ' | 0 | [2] | |||
Purchases | ' | ' | ' | -8 | ||||
Sales | ' | ' | ' | 0 | ||||
Issuances | ' | ' | ' | 0 | ||||
Settlements | ' | ' | ' | 0 | ||||
Net Transfers | ' | ' | ' | 0 | ||||
Ending balance | ' | 0 | ' | 0 | ||||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | ' | ' | ' | 0 | [4] | |||
Trading Liabilities | Corporate and Other Debt | ' | ' | ' | ' | ||||
Liabilities | ' | ' | ' | ' | ||||
Beginning balance | 65 | 246 | 276 | 732 | ||||
Realized and Unrealized Gains (Losses) | -10 | [5] | -35 | [1] | 50 | [6] | -22 | [2] |
Purchases | -65 | -122 | -185 | -609 | ||||
Sales | 26 | 57 | 78 | 160 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | -55 | ||||
Net Transfers | -14 | -3 | -97 | -37 | ||||
Ending balance | 22 | 213 | 22 | 213 | ||||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | -13 | [7] | -54 | [3] | 43 | [8] | -29 | [4] |
Trading Liabilities | Corporate and Other Debt | Residential Mortgage-backed Securities | ' | ' | ' | ' | ||||
Liabilities | ' | ' | ' | ' | ||||
Beginning balance | 4 | 4 | 4 | 355 | ||||
Realized and Unrealized Gains (Losses) | 0 | [5] | 0 | [1] | 0 | [6] | -4 | [2] |
Purchases | 0 | 0 | 0 | -355 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | 0 | 0 | 0 | 0 | ||||
Ending balance | 4 | 4 | 4 | 4 | ||||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 0 | [7] | 0 | [3] | 0 | [8] | -4 | [4] |
Trading Liabilities | Corporate and Other Debt | Corporate Bonds | ' | ' | ' | ' | ||||
Liabilities | ' | ' | ' | ' | ||||
Beginning balance | 42 | 127 | 177 | 219 | ||||
Realized and Unrealized Gains (Losses) | -15 | [5] | -26 | [1] | -5 | [6] | -44 | [2] |
Purchases | -64 | -116 | -154 | -254 | ||||
Sales | 26 | 56 | 76 | 119 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | -14 | -2 | -99 | -37 | ||||
Ending balance | 5 | 91 | 5 | 91 | ||||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | -17 | [7] | -45 | [3] | -5 | [8] | -53 | [4] |
Trading Liabilities | Corporate and Other Debt | Collateralized Debt Obligations | ' | ' | ' | ' | ||||
Liabilities | ' | ' | ' | ' | ||||
Beginning balance | ' | 1 | ' | 0 | ||||
Realized and Unrealized Gains (Losses) | ' | 0 | [1] | ' | 0 | [2] | ||
Purchases | ' | 0 | ' | 0 | ||||
Sales | ' | 1 | ' | 1 | ||||
Issuances | ' | 0 | ' | 0 | ||||
Settlements | ' | 0 | ' | 0 | ||||
Net Transfers | ' | -1 | ' | 0 | ||||
Ending balance | ' | 1 | ' | 1 | ||||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | ' | 0 | [3] | ' | 0 | [4] | ||
Trading Liabilities | Corporate and Other Debt | Unfunded Lending Commitments | ' | ' | ' | ' | ||||
Liabilities | ' | ' | ' | ' | ||||
Beginning balance | 8 | 51 | 46 | 85 | ||||
Realized and Unrealized Gains (Losses) | 4 | [5] | -11 | [1] | 42 | [6] | 23 | [2] |
Purchases | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | 0 | 0 | 0 | 0 | ||||
Ending balance | 4 | 62 | 4 | 62 | ||||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 4 | [7] | -11 | [3] | 42 | [8] | 23 | [4] |
Trading Liabilities | Corporate and Other Debt | Other Debt | ' | ' | ' | ' | ||||
Liabilities | ' | ' | ' | ' | ||||
Beginning balance | 11 | 63 | 49 | 73 | ||||
Realized and Unrealized Gains (Losses) | 1 | [5] | 2 | [1] | 13 | [6] | 3 | [2] |
Purchases | -1 | -6 | -31 | 0 | ||||
Sales | 0 | 0 | 2 | 40 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | -55 | ||||
Net Transfers | 0 | 0 | 2 | 0 | ||||
Ending balance | 9 | 55 | 9 | 55 | ||||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 0 | [7] | 2 | [3] | 6 | [8] | 5 | [4] |
Trading Liabilities | Corporate Equities | ' | ' | ' | ' | ||||
Liabilities | ' | ' | ' | ' | ||||
Beginning balance | 16 | 47 | 5 | 1 | ||||
Realized and Unrealized Gains (Losses) | -5 | [5] | 26 | [1] | -1 | [6] | 2 | [2] |
Purchases | -19 | -21 | -19 | -22 | ||||
Sales | 8 | 0 | 24 | 15 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Net Transfers | 0 | 12 | -1 | 20 | ||||
Ending balance | 10 | 12 | 10 | 12 | ||||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | ($9) | [7] | ($3) | [3] | ($10) | [8] | ($2) | [4] |
[1] | Total realized and unrealized gains (losses) are primarily included in Trading revenues in the condensed consolidated statements of income except for $230 million related to Trading assets—Investments, which is included in Investments revenues. | |||||||
[2] | Total realized and unrealized gains (losses) are primarily included in Trading revenues in the condensed consolidated statements of income except for $318 million related to Trading assets—Investments, which is included in Investments revenues. | |||||||
[3] | Amounts represent unrealized gains (losses) for the quarter ended September 30, 2012 related to assets and liabilities still outstanding at September 30, 2012. | |||||||
[4] | Amounts represent unrealized gains (losses) for the nine months ended September 30, 2012 related to assets and liabilities still outstanding at September 30, 2012. | |||||||
[5] | Total realized and unrealized gains (losses) are primarily included in Trading revenues in the condensed consolidated statements of income except for $477 million related to Trading assets—Investments, which is included in Investments revenues. | |||||||
[6] | Total realized and unrealized gains (losses) are primarily included in Trading revenues in the condensed consolidated statements of income except for $856 million related to Trading assets—Investments, which is included in Investments revenues. | |||||||
[7] | Amounts represent unrealized gains (losses) for the quarter ended September 30, 2013 related to assets and liabilities still outstanding at September 30, 2013. | |||||||
[8] | Amounts represent unrealized gains (losses) for the nine months ended September 30, 2013 related to assets and liabilities still outstanding at September 30, 2013. | |||||||
[9] | Net derivative and other contracts represent Trading assets—Derivative and other contracts net of Trading liabilities—Derivative and other contracts. For further information on derivative instruments and hedging activities, see Note 11 | |||||||
[10] | Net derivative and other contracts represent Trading assets—Derivative and other contracts net of Trading liabilities—Derivative and other contracts. For further information on derivative instruments and hedging activities, see Note 11. |
Fair_Value_Disclosures_Quantit
Fair Value Disclosures (Quantitative Information about Recurring Level 3 Fair Value Measurements) (Details) (Recurring, USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | 337,442 | 322,378 | ||
Liabilities | 189,996 | 194,431 | ||
Level 3 | Securities Sold under Agreements to Repurchase | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Funding Spread | 1.34% | [1] | 1.10% | [2] |
Level 3 | Securities Sold under Agreements to Repurchase | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Funding Spread | 1.36% | [1] | 1.84% | [2] |
Level 3 | Securities Sold under Agreements to Repurchase | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Funding Spread | 1.35% | [3] | 1.66% | |
Level 3 | Securities Sold under Agreements to Repurchase | Discounted Cash Flow | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Liabilities | 150 | 151 | ||
Level 3 | Other Secured Financings | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 99.00% | [1] | 55.00% | [2] |
Funding Spread | ' | 1.83% | [2] | |
Level 3 | Other Secured Financings | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 102.00% | [1] | 139.00% | [2] |
Funding Spread | 1.36% | [1] | 1.86% | [2] |
Level 3 | Other Secured Financings | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 99.00% | [3] | 102.00% | |
Funding Spread | 1.36% | [3] | 1.84% | |
Level 3 | Other Secured Financings | Comparable Pricing and Discounted Cash Flow | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Liabilities | 260 | 406 | ||
Level 3 | Long-term Borrowings | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
At the Money Volatility | 22.00% | [1] | 20.00% | [2] |
Volatility Skew | -1.00% | [1] | -1.00% | [2] |
Equity - Equity Correlation | 50.00% | [1] | 50.00% | [2] |
Equity - Foreign Exchange Correlation | -70.00% | [1] | -70.00% | [2] |
Level 3 | Long-term Borrowings | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
At the Money Volatility | 33.00% | [1] | 24.00% | [2] |
Volatility Skew | 0.00% | [1] | 0.00% | [2] |
Equity - Equity Correlation | 97.00% | [1] | 90.00% | [2] |
Equity - Foreign Exchange Correlation | 17.00% | [1] | 36.00% | [2] |
Level 3 | Long-term Borrowings | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
At the Money Volatility | 27.00% | [3] | 24.00% | |
Volatility Skew | 0.00% | [3] | 0.00% | |
Equity - Equity Correlation | 68.00% | [3] | 77.00% | |
Equity - Foreign Exchange Correlation | -17.00% | [3] | -15.00% | |
Level 3 | Long-term Borrowings | Option Model | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Liabilities | 2,313 | 2,789 | ||
Level 3 | Trading Assets | Corporate Equities | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Discount to Net Asset Value | 0.00% | [1] | 0.00% | [2] |
Comparable Equity Price | 0.00% | [1] | ' | |
Comparable Price | 0.00% | [1] | ' | |
Discount to Comparable Equity Price | ' | 0.00% | [2] | |
EBITDA Multiple | 5 | [1] | ' | |
Level 3 | Trading Assets | Corporate Equities | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Discount to Net Asset Value | 93.00% | [1] | 37.00% | [2] |
Comparable Equity Price | 100.00% | [1] | ' | |
Comparable Price | 100.00% | [1] | ' | |
Discount to Comparable Equity Price | ' | 27.00% | [2] | |
EBITDA Multiple | 9 | [1] | 6 | [2] |
Level 3 | Trading Assets | Corporate Equities | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Discount to Net Asset Value | 49.00% | [3] | 8.00% | |
Comparable Equity Price | 50.00% | [3] | ' | |
Comparable Price | 44.00% | [3] | ' | |
Discount to Comparable Equity Price | ' | 14.00% | ||
EBITDA Multiple | 7 | [3] | 6 | |
Level 3 | Trading Assets | Corporate Equities | Net Asset Value, Comparable Pricing and Market Approach | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | 243 | [4] | 288 | [4] |
Level 3 | Trading Assets | Corporate and Other Debt | Commercial Mortgage-backed Securities | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 40.00% | [1] | 46.00% | [2] |
Level 3 | Trading Assets | Corporate and Other Debt | Commercial Mortgage-backed Securities | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 96.00% | [1] | 100.00% | [2] |
Level 3 | Trading Assets | Corporate and Other Debt | Commercial Mortgage-backed Securities | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 72.00% | [3] | 76.00% | |
Level 3 | Trading Assets | Corporate and Other Debt | Commercial Mortgage-backed Securities | Comparable Pricing | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | 150 | 232 | ||
Level 3 | Trading Assets | Corporate and Other Debt | Asset-backed Securities | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Discount Rate | 32.00% | [1] | 21.00% | [2] |
Level 3 | Trading Assets | Corporate and Other Debt | Asset-backed Securities | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Discount Rate | 32.00% | [3] | ' | |
Discount Rate | ' | 21.00% | ||
Level 3 | Trading Assets | Corporate and Other Debt | Asset-backed Securities | Discounted Cash Flow | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | 99 | 109 | ||
Level 3 | Trading Assets | Corporate and Other Debt | Corporate Bonds | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 2.00% | [1] | 0.00% | [2] |
Level 3 | Trading Assets | Corporate and Other Debt | Corporate Bonds | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 151.00% | [1] | 143.00% | [2] |
Level 3 | Trading Assets | Corporate and Other Debt | Corporate Bonds | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 68.00% | [3] | 24.00% | |
Level 3 | Trading Assets | Corporate and Other Debt | Corporate Bonds | Comparable Pricing | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | 537 | 660 | ||
Level 3 | Trading Assets | Corporate and Other Debt | Collateralized Debt Obligations | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 18.00% | [1] | 15.00% | [2] |
Credit Correlation | 28.00% | [1] | 15.00% | [2] |
Level 3 | Trading Assets | Corporate and Other Debt | Collateralized Debt Obligations | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 97.00% | [1] | 88.00% | [2] |
Credit Correlation | 50.00% | [1] | 45.00% | [2] |
Level 3 | Trading Assets | Corporate and Other Debt | Collateralized Debt Obligations | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 68.00% | [3] | 59.00% | |
Credit Correlation | 45.00% | [3] | 40.00% | |
Level 3 | Trading Assets | Corporate and Other Debt | Collateralized Debt Obligations | Comparable Pricing and Correlation Model | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | 1,380 | 1,951 | ||
Level 3 | Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | ' | ' | ||
Fair Value Inputs | ' | ' | ||
At the Money Volatility | 31.00% | [1] | ' | |
Volatility Skew | -2.00% | [1] | ' | |
Level 3 | Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 80.00% | [1] | 80.00% | [2] |
Credit Spread | ' | 0.17% | [2] | |
Comparable Loan Price | 0.00% | [1] | 55.00% | [2] |
Level 3 | Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 120.00% | [1] | 120.00% | [2] |
Credit Spread | ' | 10.04% | [2] | |
Comparable Loan Price | 158.00% | [1] | 100.00% | [2] |
Level 3 | Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 100.00% | [3] | 104.00% | |
Credit Spread | ' | 2.81% | ||
At the Money Volatility | 31.00% | [3] | ' | |
Comparable Loan Price | 76.00% | [3] | 88.00% | |
Volatility Skew | -2.00% | [3] | ' | |
Level 3 | Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | Corporate Loan Model | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Credit Spread | 0.42% | [1] | ' | |
Level 3 | Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | Corporate Loan Model | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Credit Spread | 9.05% | [1] | ' | |
Level 3 | Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | Corporate Loan Model | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Credit Spread | 2.68% | [3] | ' | |
Level 3 | Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | Margin Loan Model | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Credit Spread | 0.16% | [1] | ' | |
Level 3 | Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | Margin Loan Model | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Credit Spread | 3.00% | [1] | ' | |
Level 3 | Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | Margin Loan Model | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Credit Spread | 1.97% | [3] | ' | |
Level 3 | Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | Corporate Loan Model, Option Model, Margin Loan Model and Comparable Pricing | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | 4,098 | ' | ||
Level 3 | Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | Corporate Loan Model and Comparable Pricing | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | ' | 4,694 | ||
Level 3 | Trading Assets | Corporate and Other Debt | Residential Mortgage-backed Securities | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 40.00% | [1] | ' | |
Level 3 | Trading Assets | Corporate and Other Debt | Residential Mortgage-backed Securities | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 100.00% | [1] | ' | |
Level 3 | Trading Assets | Corporate and Other Debt | Residential Mortgage-backed Securities | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 89.00% | [3] | ' | |
Level 3 | Trading Assets | Corporate and Other Debt | Residential Mortgage-backed Securities | Comparable Pricing | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | 90 | ' | ||
Level 3 | Trading Assets | Derivative and Other Contracts | Interest Rate Contracts | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 5.00% | [1] | 5.00% | [2],[5] |
Interest Rate Volatility Concentration Liquidity Multiple | 0 | [1] | 0 | [2],[5] |
Interest Rate Volatility Skew | 24.00% | [1] | 9.00% | [2],[5] |
Interest Rate Quanto Correlation | -22.00% | [1] | -53.00% | [2],[5] |
Interest Rate - Foreign Exchange Correlation | 2.00% | [1] | 2.00% | [2],[5] |
Inflation Volatility | 77.00% | [1] | 49.00% | [2],[5] |
Forward Commercial Paper Rate - LIBOR Basis | ' | -0.18% | [2],[5] | |
Interest Rate Curve Correlation | 35.00% | [1] | 48.00% | [2],[5] |
Level 3 | Trading Assets | Derivative and Other Contracts | Interest Rate Contracts | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 99.00% | [1] | 98.00% | [2],[5] |
Interest Rate Volatility Concentration Liquidity Multiple | 7 | [1] | 8 | [2],[5] |
Interest Rate Volatility Skew | 51.00% | [1] | 95.00% | [2],[5] |
Interest Rate Quanto Correlation | 33.00% | [1] | 33.00% | [2],[5] |
Interest Rate - Foreign Exchange Correlation | 63.00% | [1] | 63.00% | [2],[5] |
Inflation Volatility | 83.00% | [1] | 100.00% | [2],[5] |
Forward Commercial Paper Rate - LIBOR Basis | ' | 0.95% | [2],[5] | |
Interest Rate Curve Correlation | 92.00% | [1] | 99.00% | [2],[5] |
Level 3 | Trading Assets | Derivative and Other Contracts | Interest Rate Contracts | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Interest Rate Volatility Concentration Liquidity Multiple | 2 | [6] | ' | |
Level 3 | Trading Assets | Derivative and Other Contracts | Interest Rate Contracts | Simple Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 52.00% | [6] | ' | |
Interest Rate Volatility Skew | 43.00% | [6] | ' | |
Interest Rate Quanto Correlation | -4.00% | [6] | ' | |
Interest Rate - Foreign Exchange Correlation | 37.00% | [6] | ' | |
Inflation Volatility | 80.00% | [6] | ' | |
Interest Rate Curve Correlation | 72.00% | [6] | ' | |
Level 3 | Trading Assets | Derivative and Other Contracts | Interest Rate Contracts | Median | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 52.00% | [6] | ' | |
Interest Rate Volatility Skew | 35.00% | [6] | ' | |
Interest Rate Quanto Correlation | -17.00% | [6] | ' | |
Interest Rate - Foreign Exchange Correlation | 44.00% | [6] | ' | |
Inflation Volatility | 79.00% | [6] | ' | |
Interest Rate Curve Correlation | 79.00% | [6] | ' | |
Level 3 | Trading Assets | Derivative and Other Contracts | Interest Rate Contracts | Option Model | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | 310 | ' | ||
Level 3 | Trading Assets | Derivative and Other Contracts | Interest Rate Contracts | Discounted Cash Flow and Option Model | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | ' | -82 | ||
Level 3 | Trading Assets | Derivative and Other Contracts | Credit Contracts | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 0.00% | [1] | 0.00% | [2],[7] |
Credit Correlation | 27.00% | [1] | 14.00% | [2],[7] |
Cash Synthetic Basis | 2.00% | [1] | 2.00% | [2],[7] |
Level 3 | Trading Assets | Derivative and Other Contracts | Credit Contracts | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 80.00% | [1] | 80.00% | [2],[7] |
Credit Correlation | 91.00% | [1] | 94.00% | [2],[7] |
Cash Synthetic Basis | 5.00% | [1] | 14.00% | [2],[7] |
Level 3 | Trading Assets | Derivative and Other Contracts | Credit Contracts | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 24.00% | [3] | ' | |
Credit Correlation | 52.00% | [3] | ' | |
Cash Synthetic Basis | 4.00% | [3] | ' | |
Level 3 | Trading Assets | Derivative and Other Contracts | Credit Contracts | Comparable Pricing and Correlation Model | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | 710 | 1,822 | ||
Level 3 | Trading Assets | Derivative and Other Contracts | Foreign Exchange Contracts | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Interest rate curve | 1.00% | [1] | ' | |
Level 3 | Trading Assets | Derivative and Other Contracts | Foreign Exchange Contracts | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 5.00% | [1] | 5.00% | [2],[8] |
Interest Rate Volatility Skew | 24.00% | [1] | 9.00% | [2],[8] |
Interest Rate Quanto Correlation | -22.00% | [1] | -53.00% | [2],[8] |
Interest Rate - Credit Spread Correlation | ' | -59.00% | [2],[8] | |
Interest Rate - Foreign Exchange Correlation | 2.00% | [1] | 2.00% | [2],[8] |
Interest Rate Curve Correlation | 35.00% | [1] | ' | |
Level 3 | Trading Assets | Derivative and Other Contracts | Foreign Exchange Contracts | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 99.00% | [1] | 98.00% | [2],[8] |
Interest Rate Volatility Skew | 51.00% | [1] | 95.00% | [2],[8] |
Interest Rate Quanto Correlation | 33.00% | [1] | 33.00% | [2],[8] |
Interest Rate - Credit Spread Correlation | ' | 65.00% | [2],[8] | |
Interest Rate - Foreign Exchange Correlation | 63.00% | [1] | 63.00% | [2],[8] |
Interest Rate Curve Correlation | 92.00% | [1] | ' | |
Level 3 | Trading Assets | Derivative and Other Contracts | Foreign Exchange Contracts | Simple Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 52.00% | [6] | ' | |
Interest Rate Volatility Skew | 43.00% | [6] | ' | |
Interest rate curve | 1.00% | [6] | ' | |
Interest Rate Quanto Correlation | -4.00% | [6] | ' | |
Interest Rate - Foreign Exchange Correlation | 37.00% | [6] | ' | |
Interest Rate Curve Correlation | 72.00% | [6] | ' | |
Level 3 | Trading Assets | Derivative and Other Contracts | Foreign Exchange Contracts | Median | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | 52.00% | [6] | ' | |
Interest Rate Volatility Skew | 35.00% | [6] | ' | |
Interest rate curve | 1.00% | [6] | ' | |
Interest Rate Quanto Correlation | -17.00% | [6] | ' | |
Interest Rate - Foreign Exchange Correlation | 44.00% | [6] | ' | |
Interest Rate Curve Correlation | 79.00% | [6] | ' | |
Level 3 | Trading Assets | Derivative and Other Contracts | Foreign Exchange Contracts | Option Model | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | -35 | [9] | -359 | [9] |
Level 3 | Trading Assets | Derivative and Other Contracts | Equity Contracts | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
At the Money Volatility | 18.00% | [1] | 7.00% | [10],[2] |
Volatility Skew | -2.00% | [1] | -2.00% | [10],[2] |
Equity - Equity Correlation | 40.00% | [1] | 40.00% | [10],[2] |
Equity - Foreign Exchange Correlation | -50.00% | [1] | -70.00% | [10],[2] |
Equity - Interest Rate Correlation | 3.00% | [1] | 18.00% | [10],[2] |
Level 3 | Trading Assets | Derivative and Other Contracts | Equity Contracts | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
At the Money Volatility | 44.00% | [1] | 24.00% | [10],[2] |
Volatility Skew | 0.00% | [1] | 0.00% | [10],[2] |
Equity - Equity Correlation | 99.00% | [1] | 96.00% | [10],[2] |
Equity - Foreign Exchange Correlation | -11.00% | [1] | 38.00% | [10],[2] |
Equity - Interest Rate Correlation | 70.00% | [1] | 65.00% | [10],[2] |
Level 3 | Trading Assets | Derivative and Other Contracts | Equity Contracts | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
At the Money Volatility | 31.00% | [3] | ' | |
Volatility Skew | -1.00% | [3] | ' | |
Equity - Equity Correlation | 71.00% | [3] | ' | |
Equity - Foreign Exchange Correlation | -22.00% | [3] | ' | |
Level 3 | Trading Assets | Derivative and Other Contracts | Equity Contracts | Simple Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Equity - Interest Rate Correlation | 40.00% | [6] | ' | |
Level 3 | Trading Assets | Derivative and Other Contracts | Equity Contracts | Median | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Equity - Interest Rate Correlation | 36.00% | [6] | ' | |
Level 3 | Trading Assets | Derivative and Other Contracts | Equity Contracts | Option Model | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | -1,631 | [9] | -1,144 | [9] |
Level 3 | Trading Assets | Derivative and Other Contracts | Commodity Contracts | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Forward Power Price (per megawatt hour) | 10 | [1] | 28 | [2] |
Commodity Volatility | 11.00% | [1] | 17.00% | [2] |
Cross Commodity Correlation | 43.00% | [1] | 43.00% | [2] |
Level 3 | Trading Assets | Derivative and Other Contracts | Commodity Contracts | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Forward Power Price (per megawatt hour) | 108 | [1] | 84 | [2] |
Commodity Volatility | 28.00% | [1] | 29.00% | [2] |
Cross Commodity Correlation | 98.00% | [1] | 97.00% | [2] |
Level 3 | Trading Assets | Derivative and Other Contracts | Commodity Contracts | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Forward Power Price (per megawatt hour) | 38 | [3] | ' | |
Commodity Volatility | 13.00% | [3] | ' | |
Cross Commodity Correlation | 97.00% | [3] | ' | |
Level 3 | Trading Assets | Derivative and Other Contracts | Commodity Contracts | Option Model | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | 855 | 709 | ||
Level 3 | Trading Assets | Investments | Principal Investments | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Implied Weighted Average Cost of Capital | 9.00% | [1] | 8.00% | [2] |
EBITDA Multiple | 4 | [1] | 3 | [2] |
Exit Multiple | 7 | [1] | 5 | [2] |
Capitalization Rate | 6.00% | [1] | 6.00% | [2] |
Equity Discount Rate | 10.00% | [1] | 15.00% | [2] |
Level 3 | Trading Assets | Investments | Principal Investments | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Implied Weighted Average Cost of Capital | 12.00% | [1] | 15.00% | [2] |
EBITDA Multiple | 16 | [1] | 17 | [2] |
Exit Multiple | 9 | [1] | 10 | [2] |
Capitalization Rate | 11.00% | [1] | 10.00% | [2] |
Equity Discount Rate | 30.00% | [1] | 35.00% | [2] |
Level 3 | Trading Assets | Investments | Principal Investments | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Implied Weighted Average Cost of Capital | 11.00% | [3] | 9.00% | |
EBITDA Multiple | 9 | [3] | 10 | |
Exit Multiple | 8 | [3] | 9 | |
Capitalization Rate | 7.00% | [3] | 7.00% | |
Equity Discount Rate | 22.00% | [3] | 23.00% | |
Level 3 | Trading Assets | Investments | Principal Investments | Discounted Cash Flow and Market Approach | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | 2,338 | [4] | 2,833 | [4] |
Level 3 | Trading Assets | Investments | Other Investments | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Implied Weighted Average Cost of Capital | 10.00% | [1] | ' | |
Exit Multiple | 7 | [1] | ' | |
Level 3 | Trading Assets | Investments | Other Investments | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
EBITDA Multiple | 8 | [1] | 6 | [2] |
Level 3 | Trading Assets | Investments | Other Investments | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Implied Weighted Average Cost of Capital | ' | 11.00% | [2] | |
EBITDA Multiple | 9 | [1] | 8 | [2] |
Exit Multiple | ' | 6 | [2] | |
Level 3 | Trading Assets | Investments | Other Investments | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Implied Weighted Average Cost of Capital | 10.00% | [3] | 11.00% | |
EBITDA Multiple | 9 | [3] | 7 | |
Exit Multiple | 7 | [3] | 6 | |
Level 3 | Trading Assets | Investments | Other Investments | Discounted Cash Flow and Market Approach | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Assets | 494 | [4] | 486 | [4] |
Level 3 | Trading Liabilities | Corporate and Other Debt | Corporate Bonds | Minimum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | ' | 0.00% | [2] | |
Level 3 | Trading Liabilities | Corporate and Other Debt | Corporate Bonds | Maximum | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | ' | 150.00% | [2] | |
Level 3 | Trading Liabilities | Corporate and Other Debt | Corporate Bonds | Weighted Average | ' | ' | ||
Fair Value Inputs | ' | ' | ||
Comparable Bond Price | ' | 50.00% | ||
Level 3 | Trading Liabilities | Corporate and Other Debt | Corporate Bonds | Comparable Pricing | ' | ' | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ' | ' | ||
Liabilities | ' | 177 | ||
[1] | The ranges of significant unobservable inputs are represented in points, percentages, basis points, times or megawatt hours. Points are a percentage of par; for example, 96 points would be 96% of par. A basis point equals 1/100th of 1%; for example, 905 basis points would equal 9.05%. | |||
[2] | The ranges of significant unobservable inputs are represented in points, percentages, basis points, times or megawatt hours. Points are a percentage of par; for example, 100 points would be 100% of par. A basis point equals 1/100th of 1%; for example, 1,004 basis points would equal 10.04%. | |||
[3] | Amounts represent weighted averages except where simple averages and the median of the inputs are provided (see footnote 4 below). Weighted averages are calculated by weighting each input by the fair value of the respective financial instruments except for long-term borrowings and derivative instruments where inputs are weighted by risk. | |||
[4] | Investments in funds measured using an unadjusted NAV are excluded. | |||
[5] | See Note 4 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K for a qualitative discussion of the wide unobservable input ranges for comparable bond prices, interest rate volatility skew, interest rate quanto correlation and forward commercial paper rate–LIBOR basis. | |||
[6] | The data structure of the significant unobservable inputs used in valuing Interest rate contracts, Foreign exchange contracts and certain Equity contracts may be in a multi-dimensional form, such as a curve or surface, with risk distributed across the structure. Therefore, a simple average and median, together with the range of data inputs, may be more appropriate measurements than a single point weighted average. | |||
[7] | See Note 4 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K for a qualitative discussion of the wide unobservable input ranges for comparable bond prices and credit correlation. | |||
[8] | See Note 4 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K for a qualitative discussion of the wide unobservable input ranges for comparable bond prices, interest rate quanto correlation, interest rate-credit spread correlation and interest rate volatility skew. | |||
[9] | Includes derivative contracts with multiple risks (i.e., hybrid products). | |||
[10] | See Note 4 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K for a qualitative discussion of the wide unobservable input range for equity-foreign exchange correlation. |
Fair_Value_Disclosures_Fair_Va
Fair Value Disclosures (Fair Value of Investments that Calculate Net Asset Value) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||||||||
In Millions, unless otherwise specified | Private Equity Funds | Private Equity Funds | Real Estate Funds | Real Estate Funds | Hedge Funds | Hedge Funds | Long-short Equity Hedge Funds | Long-short Equity Hedge Funds | Long-short Equity Hedge Funds | Long-short Equity Hedge Funds | Long-short Equity Hedge Funds | Long-short Equity Hedge Funds | Long-short Equity Hedge Funds | Long-short Equity Hedge Funds | Fixed Income/Credit-Related Hedge Funds | Fixed Income/Credit-Related Hedge Funds | Event Driven Hedge Funds | Event Driven Hedge Funds | Multi-strategy Hedge Funds | Multi-strategy Hedge Funds | Multi-strategy Hedge Funds | Multi-strategy Hedge Funds | Multi-strategy Hedge Funds | ||||||||||
Minimum | Maximum | Minimum | Minimum | Initial Period Lock-up Restrictions | Subsequent Lock-up Restrictions | Exit Restrictions | Exit Restrictions | Initial Period Lock-up Restrictions | Subsequent Lock-up Restrictions | Exit Restrictions | |||||||||||||||||||||||
Maximum | Maximum | Maximum | |||||||||||||||||||||||||||||||
Fair Value of Investments that Calculate Net Asset Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Investments | $8,574 | $8,346 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Fair Value | 4,783 | 4,489 | 2,450 | 2,179 | 1,529 | 1,376 | ' | ' | 466 | [1] | 475 | [1] | ' | ' | ' | ' | ' | ' | 71 | [1] | 86 | [1] | 39 | [1] | 52 | [1] | 228 | [1] | 321 | [1] | ' | ' | ' |
Unfunded Commitment | $729 | $868 | $577 | $644 | $149 | $221 | ' | ' | $0 | [1] | $0 | [1] | ' | ' | ' | ' | ' | ' | $0 | [1] | $0 | [1] | $0 | [1] | $0 | [1] | $3 | [1] | $3 | [1] | ' | ' | ' |
Redemption frequency | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Redemption notice period | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | '6 months | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Percent of investments redeemable at least quarterly | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 36.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Percent of investments redeemable every six months | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 38.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Percent of investments redeemable greater than six months | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 26.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Percent of investments that will be liquidated in the next five years | ' | ' | 8.00% | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Percent of investments that will be liquidated within five to 10 years | ' | ' | 57.00% | ' | 53.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Percent of investments that will be liquidated after 10 years | ' | ' | 35.00% | ' | 44.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Percent of investments that cannot be redeemed currently | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.00% | ' | 19.00% | ' | ' | ' | ' | ' | ' | ' | 47.00% | ' | 9.00% | ||||||||
Redemption restriction period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ||||||||
[1] | Fixed income/credit-related hedge funds, event-driven hedge funds, and multi-strategy hedge funds are redeemable at least on a six-month period basis primarily with a notice period of 90 days or less. At September 30, 2013, approximately 40% of the fair value amount of long-short equity hedge funds is redeemable at least quarterly, 40% is redeemable every six months and 20% of these funds have a redemption frequency of greater than six months. The notice period for long-short equity hedge funds at September 30, 2013 is primarily greater than six months. At December 31, 2012, approximately 36% of the fair value amount of long-short equity hedge funds is redeemable at least quarterly, 38% is redeemable every six months and 26% of these funds have a redemption frequency of greater than six months. The notice period for long-short equity hedge funds at December 31, 2012 is primarily greater than six months. |
Fair_Value_Disclosures_Net_Gai
Fair Value Disclosures (Net Gains (Losses) Due to Changes in Fair Value for Items Measured at Fair Value Pursuant to the Fair Value Option Election) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Federal Funds Sold and Securities Purchased under Agreements to Resell | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | $4 | $5 | $6 | $15 | ||||
Deposits | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | -3 | -6 | -6 | -25 | ||||
Commercial Paper and Other Short-term Borrowings | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | -65 | -68 | 113 | 14 | ||||
Securities Sold under Agreements to Repurchase | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | -5 | -14 | -3 | -13 | ||||
Long-term Borrowings | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | -378 | -3,918 | 301 | -6,238 | ||||
Trading | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value attributable to changes in the credit quality of the Company | -171 | -2,262 | -313 | -3,890 | ||||
Trading | Federal Funds Sold and Securities Purchased under Agreements to Resell | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | 1 | 3 | 0 | 11 | ||||
Trading | Deposits | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | 14 | 16 | 44 | 41 | ||||
Trading | Commercial Paper and Other Short-term Borrowings | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | -62 | [1] | -68 | [2] | 118 | [1] | 14 | [2] |
Trading | Securities Sold under Agreements to Repurchase | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | -3 | -13 | 2 | -10 | ||||
Trading | Long-term Borrowings | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | -154 | [1] | -3,570 | [2] | 1,053 | [1] | -5,221 | [2] |
Interest Income (Expense) | Federal Funds Sold and Securities Purchased under Agreements to Resell | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | 3 | 2 | 6 | 4 | ||||
Interest Income (Expense) | Deposits | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | -17 | -22 | -50 | -66 | ||||
Interest Income (Expense) | Commercial Paper and Other Short-term Borrowings | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | -3 | 0 | -5 | 0 | ||||
Interest Income (Expense) | Securities Sold under Agreements to Repurchase | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | -2 | -1 | -5 | -3 | ||||
Interest Income (Expense) | Long-term Borrowings | ' | ' | ' | ' | ||||
Gains (losses) due to changes in fair value | ($224) | ($348) | ($752) | ($1,017) | ||||
[1] | Of the total gains (losses) recorded in Trading revenues for short-term and long-term borrowings for the quarter and nine months ended September 30, 2013, $(171) million and $(313) million, respectively, are attributable to changes in the credit quality of the Company, and the respective remainder is attributable to changes in foreign currency rates or interest rates or movements in the reference price or index for structured notes before the impact of related hedges. | |||||||
[2] | Of the total gains (losses) recorded in Trading revenues for short-term and long-term borrowings for the quarter and nine months ended September 30, 2012, $(2,262) million and $(3,890) million, respectively, are attributable to changes in the credit quality of the Company, and the respective remainder is attributable to changes in foreign currency rates or interest rates or movements in the reference price or index for structured notes before the impact of related hedges. |
Fair_Value_Disclosures_Shortte
Fair Value Disclosures (Short-term and Long-term Borrowings) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Balance Sheet Captions | ' | ' |
Short-term and long-term borrowing, fair value | $38,342 | $44,769 |
Equity | ' | ' |
Balance Sheet Captions | ' | ' |
Short-term and long-term borrowing, fair value | 17,657 | 17,326 |
Credit and Foreign Exchange Contracts | ' | ' |
Balance Sheet Captions | ' | ' |
Short-term and long-term borrowing, fair value | 2,688 | 3,337 |
Interest Rates | ' | ' |
Balance Sheet Captions | ' | ' |
Short-term and long-term borrowing, fair value | 17,457 | 23,330 |
Commodities | ' | ' |
Balance Sheet Captions | ' | ' |
Short-term and long-term borrowing, fair value | $540 | $776 |
Fair_Value_Disclosures_Gains_L
Fair Value Disclosures (Gains (Losses) Due to Changes in Instrument Specific Credit Risk) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Short-term and Long-term Borrowings | ' | ' | ' | ' | ||||
Gains (losses) due to changes in instrument specific credit risk | ($171) | [1] | ($2,262) | [1] | ($313) | [1] | ($3,890) | [1] |
Loans | ' | ' | ' | ' | ||||
Gains (losses) due to changes in instrument specific credit risk | 35 | [2] | 255 | [2] | 150 | [2] | 429 | [2] |
Unfunded Lending Commitments | ' | ' | ' | ' | ||||
Gains (losses) due to changes in instrument specific credit risk | $6 | [3] | $319 | [3] | $221 | [3] | $804 | [3] |
[1] | The change in the fair value of short-term and long-term borrowings (primarily structured notes) includes an adjustment to reflect the change in credit quality of the Company based upon observations of the Company’s secondary bond market spreads. | |||||||
[2] | Instrument-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses, such as those due to changes in interest rates. | |||||||
[3] | Gains (losses) were generally determined based on the differential between estimated expected client yields and contractual yields at each respective period end. |
Fair_Value_Disclosures_Amount_
Fair Value Disclosures (Amount by Which Contractual Principal Amount Exceeds Fair Value) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value Disclosures | ' | ' | ||
Short-term and long-term debt borrowings | ($1,513) | [1] | ($436) | [1] |
Loans | 17,879 | [2] | 25,249 | [2] |
Loans 90 or more days past due and/or on non-accrual status | 16,149 | [2],[3] | 20,456 | [2],[3] |
Aggregate fair value of loans in non-accrual status including all loans 90 or more days past due | 1,885 | 1,360 | ||
Amounts past due 90 days or greater (unpaid principal balance) | $1,158 | $840 | ||
[1] | These amounts do not include structured notes where the repayment of the initial principal amount fluctuates based on changes in the reference price or index. | |||
[2] | The majority of this difference between principal and fair value amounts emanates from the Company’s distressed debt trading business, which purchases distressed debt at amounts well below par. | |||
[3] | The aggregate fair value of loans that were in non-accrual status, which includes all loans 90 or more days past due, was $1,885 million and $1,360 million at September 30, 2013 and December 31, 2012, respectively. The aggregate fair value of loans that were 90 or more days past due was $1,158 million and $840 million at September 30, 2013 and December 31, 2012, respectively. |
Fair_Value_Disclosures_Assets_1
Fair Value Disclosures (Assets Measured at Fair Value on a Nonrecurring Basis) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||||||||||||||||||||||||||
Saxon | Saxon | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | ||||||||||||||||||||||||||||||||
Loans | Loans | Loans | Loans | Other Investments | Other Investments | Other Investments | Other Investments | Premises, Equipment and Software Costs | Premises, Equipment and Software Costs | Premises, Equipment and Software Costs | Premises, Equipment and Software Costs | Intangible Assets | Intangible Assets | Intangible Assets | Intangible Assets | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | ||||||||||||||||||||||||||||||||||||||
Carrying Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||
Loans | $37,734 | ' | $29,046 | ' | ' | $1,507 | [1] | $893 | [1] | $1,507 | [1] | $893 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Other investments | 5,083 | ' | 4,999 | ' | ' | 55 | [2] | 82 | [3] | 55 | [2] | 82 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Premises, equipment and software costs | 6,008 | ' | 5,946 | ' | ' | 0 | [2] | 34 | [3] | 0 | [2] | 34 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Intangible assets | 3,514 | ' | 3,783 | ' | ' | 0 | [2] | 0 | [3] | 0 | [2] | 0 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Goodwill | 6,591 | [4] | ' | 6,650 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||
Total carrying value | ' | ' | ' | ' | ' | 1,562 | 1,009 | 1,562 | 1,009 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||
Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||
Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | 0 | [1] | 1,160 | [1] | 138 | [1] | 347 | [1] | 755 | [1] | ||||||||||||||||||||||
Other investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 55 | 82 | ||||||||||||||||||||||||||||
Premises, equipment and software costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 34 | ||||||||||||||||||||||||||||
Intangible assets | 8 | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
Total fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 1,160 | 138 | 402 | 871 | ||||||||||||||||||||||||||||
Gains (losses) in fair value adjustment | ' | ' | ' | ' | ' | -57 | [5] | -189 | [6] | -166 | [5] | -224 | [6] | -35 | [1],[5] | -10 | [1],[6] | -106 | [1],[5] | -30 | [1],[6] | -5 | [5],[7] | -11 | [6],[7] | -28 | [5],[7] | -21 | [6],[7] | -17 | [5],[7] | -168 | [6],[8] | -23 | [5],[7] | -169 | [6],[8] | 0 | [5],[7] | 0 | [6],[7] | -9 | [5],[7] | -4 | [6],[7] | ' | ' | ' | ' | ' | ' | ||||||||
Additional Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||
Pre-tax gain from subsequent increase in fair value of impaired assets | ' | ' | ' | ' | 51 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||
Impairment losses | $182 | $224 | ' | $98 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||
[1] | Non-recurring changes in the fair value of loans held for investment or held for sale were calculated using recently executed transactions; market price quotations; valuation models that incorporate market observable inputs where possible, such as comparable loan or debt prices and credit default swap spread levels adjusted for any basis difference between cash and derivative instruments; or default recovery analysis where such transactions and quotations are unobservable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Carrying values relate only to those assets that had fair value adjustments during the quarter ended September 30, 2013. These amounts do not include assets that had fair value adjustments during the nine months ended September 30, 2013, unless the assets also had a fair value adjustment during the quarter ended September 30, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Carrying values relate only to those assets that had fair value adjustments during the quarter ended September 30, 2012. These amounts do not include assets that had fair value adjustments during the nine months ended September 30, 2012, unless the assets also had a fair value adjustment during the quarter ended September 30, 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | The amount of the Company’s goodwill before accumulated impairments of $700 million, which included $673 million related to the Institutional Securities business segment and $27 million related to the Investment Management business segment, was $7,291 million and $7,350 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | Fair value adjustments related to Loans and losses related to Other investments are recorded within Other revenues whereas losses related to Premises, equipment and software costs and Intangible assets are recorded within Other expenses in the condensed consolidated statements of income. . | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | Losses are recorded within Other expenses in the condensed consolidated statements of income except for fair value adjustments related to Loans and losses related to Other investments, which are included in Other revenues. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | Losses recorded were determined primarily using discounted cash flow models. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[8] | Losses were determined using discounted cash flow models and primarily represented the write-off of the carrying value of certain premises and software that were abandoned during the quarter ended September 30, 2012 in association with the Wealth Management JV integration. |
Fair_Value_Disclosures_Financi
Fair Value Disclosures (Financial Instruments Not Carried at FV) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | ||
Financial Assets: | ' | ' | ' | ||
Cash and due from banks | $14,333,000,000 | $20,878,000,000 | $18,239,000,000 | ||
Interest bearing deposits with banks | 43,448,000,000 | 26,026,000,000 | 18,347,000,000 | ||
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 37,392,000,000 | 30,970,000,000 | ' | ||
Federal funds sold and securities purchased under agreements to resell | 133,988,000,000 | 134,412,000,000 | ' | ||
Securities borrowed | 139,169,000,000 | 121,701,000,000 | ' | ||
Customer and other receivables | 57,710,000,000 | 64,288,000,000 | ' | ||
Loans | 37,734,000,000 | 29,046,000,000 | ' | ||
Financial Liabilities | ' | ' | ' | ||
Deposits | 104,807,000,000 | 83,266,000,000 | ' | ||
Commercial paper and other short-term borrowings | 2,333,000,000 | 2,138,000,000 | ' | ||
Securities sold under agreement to repurchase | 139,398,000,000 | 122,674,000,000 | ' | ||
Securities loaned | 32,807,000,000 | 36,849,000,000 | ' | ||
Other secured financings | 14,528,000,000 | [1] | 15,727,000,000 | [1] | ' |
Customer and other payables | 152,091,000,000 | 127,722,000,000 | ' | ||
Long-term borrowings | 157,805,000,000 | 169,571,000,000 | ' | ||
Carrying Value | ' | ' | ' | ||
Financial Assets: | ' | ' | ' | ||
Cash and due from banks | 14,333,000,000 | 20,878,000,000 | ' | ||
Interest bearing deposits with banks | 43,448,000,000 | 26,026,000,000 | ' | ||
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 37,392,000,000 | 30,970,000,000 | ' | ||
Federal funds sold and securities purchased under agreements to resell | 133,120,000,000 | 133,791,000,000 | ' | ||
Securities borrowed | 139,169,000,000 | 121,701,000,000 | ' | ||
Customer and other receivables | 53,636,000,000 | [2] | 59,702,000,000 | [2] | ' |
Loans | 37,734,000,000 | [3] | 29,046,000,000 | [3] | ' |
Financial Liabilities | ' | ' | ' | ||
Deposits | 103,396,000,000 | 81,781,000,000 | ' | ||
Commercial paper and other short-term borrowings | 710,000,000 | 1,413,000,000 | ' | ||
Securities sold under agreement to repurchase | 138,844,000,000 | 122,311,000,000 | ' | ||
Securities loaned | 32,807,000,000 | 36,849,000,000 | ' | ||
Other secured financings | 8,383,000,000 | 6,261,000,000 | ' | ||
Customer and other payables | 149,005,000,000 | [2] | 125,037,000,000 | [2] | ' |
Long-term borrowings | 121,086,000,000 | 125,527,000,000 | ' | ||
Additional Disclosures | ' | ' | ' | ||
Lending commitments if fully funded | 71,500,000,000 | 50,000,000,000 | ' | ||
Fair Value | ' | ' | ' | ||
Financial Assets: | ' | ' | ' | ||
Cash and due from banks | 14,333,000,000 | 20,878,000,000 | ' | ||
Interest bearing deposits with banks | 43,448,000,000 | 26,026,000,000 | ' | ||
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 37,392,000,000 | 30,970,000,000 | ' | ||
Federal funds sold and securities purchased under agreements to resell | 133,117,000,000 | 133,792,000,000 | ' | ||
Securities borrowed | 139,165,000,000 | 121,705,000,000 | ' | ||
Customer and other receivables | 53,512,000,000 | [2] | 59,634,000,000 | [2] | ' |
Loans | 37,697,000,000 | [3] | 27,263,000,000 | [3] | ' |
Financial Liabilities | ' | ' | ' | ||
Deposits | 103,396,000,000 | 81,781,000,000 | ' | ||
Commercial paper and other short-term borrowings | 710,000,000 | 1,413,000,000 | ' | ||
Securities sold under agreement to repurchase | 138,882,000,000 | 122,389,000,000 | ' | ||
Securities loaned | 32,868,000,000 | 37,163,000,000 | ' | ||
Other secured financings | 8,418,000,000 | 6,276,000,000 | ' | ||
Customer and other payables | 149,005,000,000 | [2] | 125,037,000,000 | [2] | ' |
Long-term borrowings | 124,727,000,000 | 126,683,000,000 | ' | ||
Additional Disclosures | ' | ' | ' | ||
Unfunded lending commitments | 864,000,000 | 755,000,000 | ' | ||
Fair Value | Level 1 | ' | ' | ' | ||
Financial Assets: | ' | ' | ' | ||
Cash and due from banks | 14,333,000,000 | 20,878,000,000 | ' | ||
Interest bearing deposits with banks | 43,448,000,000 | 26,026,000,000 | ' | ||
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 37,392,000,000 | 30,970,000,000 | ' | ||
Federal funds sold and securities purchased under agreements to resell | 0 | 0 | ' | ||
Securities borrowed | 0 | 0 | ' | ||
Customer and other receivables | 0 | [2] | 0 | [2] | ' |
Loans | 0 | [3] | 0 | [3] | ' |
Financial Liabilities | ' | ' | ' | ||
Deposits | 0 | 0 | ' | ||
Commercial paper and other short-term borrowings | 0 | 0 | ' | ||
Securities sold under agreement to repurchase | 0 | 0 | ' | ||
Securities loaned | 0 | 0 | ' | ||
Other secured financings | 0 | 0 | ' | ||
Customer and other payables | 0 | [2] | 0 | [2] | ' |
Long-term borrowings | 0 | 0 | ' | ||
Fair Value | Level 2 | ' | ' | ' | ||
Financial Assets: | ' | ' | ' | ||
Cash and due from banks | 0 | 0 | ' | ||
Interest bearing deposits with banks | 0 | 0 | ' | ||
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 0 | 0 | ' | ||
Federal funds sold and securities purchased under agreements to resell | 132,613,000,000 | 133,035,000,000 | ' | ||
Securities borrowed | 138,836,000,000 | 121,691,000,000 | ' | ||
Customer and other receivables | 47,964,000,000 | [2] | 53,532,000,000 | [2] | ' |
Loans | 9,807,000,000 | [3] | 5,307,000,000 | [3] | ' |
Financial Liabilities | ' | ' | ' | ||
Deposits | 103,396,000,000 | 81,781,000,000 | ' | ||
Commercial paper and other short-term borrowings | 656,000,000 | 1,107,000,000 | ' | ||
Securities sold under agreement to repurchase | 131,399,000,000 | 111,722,000,000 | ' | ||
Securities loaned | 31,999,000,000 | 35,978,000,000 | ' | ||
Other secured financings | 5,944,000,000 | 3,649,000,000 | ' | ||
Customer and other payables | 149,005,000,000 | [2] | 125,037,000,000 | [2] | ' |
Long-term borrowings | 116,945,000,000 | 116,511,000,000 | ' | ||
Additional Disclosures | ' | ' | ' | ||
Unfunded lending commitments | 787,000,000 | 543,000,000 | ' | ||
Fair Value | Level 3 | ' | ' | ' | ||
Financial Assets: | ' | ' | ' | ||
Cash and due from banks | 0 | 0 | ' | ||
Interest bearing deposits with banks | 0 | 0 | ' | ||
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 0 | 0 | ' | ||
Federal funds sold and securities purchased under agreements to resell | 504,000,000 | 757,000,000 | ' | ||
Securities borrowed | 329,000,000 | 14,000,000 | ' | ||
Customer and other receivables | 5,548,000,000 | [2] | 6,102,000,000 | [2] | ' |
Loans | 27,890,000,000 | [3] | 21,956,000,000 | [3] | ' |
Financial Liabilities | ' | ' | ' | ||
Deposits | 0 | 0 | ' | ||
Commercial paper and other short-term borrowings | 54,000,000 | 306,000,000 | ' | ||
Securities sold under agreement to repurchase | 7,483,000,000 | 10,667,000,000 | ' | ||
Securities loaned | 869,000,000 | 1,185,000,000 | ' | ||
Other secured financings | 2,474,000,000 | 2,627,000,000 | ' | ||
Customer and other payables | 0 | [2] | 0 | [2] | ' |
Long-term borrowings | 7,782,000,000 | 10,172,000,000 | ' | ||
Additional Disclosures | ' | ' | ' | ||
Unfunded lending commitments | $77,000,000 | $212,000,000 | ' | ||
[1] | Amounts include $6,145 million and $9,466 million at fair value at September 30, 2013 and December 31, 2012, respectively. | ||||
[2] | Accrued interest, fees and dividend receivables and payables where carrying value approximates fair value have been excluded. | ||||
[3] | Includes all loans measured at fair value on a non-recurring basis. |
Securities_Available_for_Sale_1
Securities Available for Sale (Schedule of Available for Sale Securities) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Securities Available for Sale | ' | ' | ||
Amortized Cost | $47,175 | $39,612 | ||
Gross Unrealized Gains | 120 | 277 | ||
Gross Unrealized Losses | 429 | 20 | ||
Other-than-Temporary Impairment | 0 | 0 | ||
Securities available for sale, at fair value | 46,866 | 39,869 | ||
Debt Securities | ' | ' | ||
Securities Available for Sale | ' | ' | ||
Amortized Cost | 47,160 | 39,597 | ||
Gross Unrealized Gains | 120 | 277 | ||
Gross Unrealized Losses | 428 | 13 | ||
Other-than-Temporary Impairment | 0 | 0 | ||
Securities available for sale, at fair value | 46,852 | 39,861 | ||
U.S. Government and Agency Securities | ' | ' | ||
Securities Available for Sale | ' | ' | ||
Amortized Cost | 33,954 | 29,681 | ||
Gross Unrealized Gains | 101 | 231 | ||
Gross Unrealized Losses | 254 | 5 | ||
Other-than-Temporary Impairment | 0 | 0 | ||
Securities available for sale, at fair value | 33,801 | 29,907 | ||
U.S. Treasury Securities | ' | ' | ||
Securities Available for Sale | ' | ' | ||
Amortized Cost | 19,856 | 14,351 | ||
Gross Unrealized Gains | 65 | 109 | ||
Gross Unrealized Losses | 80 | 2 | ||
Other-than-Temporary Impairment | 0 | 0 | ||
Securities available for sale, at fair value | 19,841 | 14,458 | ||
U.S. Agency Securities | ' | ' | ||
Securities Available for Sale | ' | ' | ||
Amortized Cost | 14,098 | 15,330 | ||
Gross Unrealized Gains | 36 | 122 | ||
Gross Unrealized Losses | 174 | 3 | ||
Other-than-Temporary Impairment | 0 | 0 | ||
Securities available for sale, at fair value | 13,960 | 15,449 | ||
Corporate and Other Debt | ' | ' | ||
Securities Available for Sale | ' | ' | ||
Amortized Cost | 13,206 | 9,916 | ||
Gross Unrealized Gains | 19 | 46 | ||
Gross Unrealized Losses | 174 | 8 | ||
Other-than-Temporary Impairment | 0 | 0 | ||
Securities available for sale, at fair value | 13,051 | 9,954 | ||
Agency | ' | ' | ||
Securities Available for Sale | ' | ' | ||
Amortized Cost | 2,382 | 2,197 | ||
Gross Unrealized Gains | 0 | 6 | ||
Gross Unrealized Losses | 76 | 4 | ||
Other-than-Temporary Impairment | 0 | 0 | ||
Securities available for sale, at fair value | 2,306 | 2,199 | ||
Non-Agency | ' | ' | ||
Securities Available for Sale | ' | ' | ||
Amortized Cost | 1,179 | 160 | ||
Gross Unrealized Gains | 2 | 0 | ||
Gross Unrealized Losses | 19 | 0 | ||
Other-than-Temporary Impairment | 0 | 0 | ||
Securities available for sale, at fair value | 1,162 | 160 | ||
Auto Loan Asset-backed Securities | ' | ' | ||
Securities Available for Sale | ' | ' | ||
Amortized Cost | 2,046 | 1,993 | ||
Gross Unrealized Gains | 1 | 4 | ||
Gross Unrealized Losses | 3 | 1 | ||
Other-than-Temporary Impairment | 0 | 0 | ||
Securities available for sale, at fair value | 2,044 | 1,996 | ||
Corporate Bonds | ' | ' | ||
Securities Available for Sale | ' | ' | ||
Amortized Cost | 3,562 | 2,891 | ||
Gross Unrealized Gains | 4 | 13 | ||
Gross Unrealized Losses | 54 | 3 | ||
Other-than-Temporary Impairment | 0 | 0 | ||
Securities available for sale, at fair value | 3,512 | 2,901 | ||
Collateralized Debt and Loan Obligations | ' | ' | ||
Securities Available for Sale | ' | ' | ||
Amortized Cost | 1,087 | ' | ||
Gross Unrealized Gains | 0 | ' | ||
Gross Unrealized Losses | 14 | ' | ||
Other-than-Temporary Impairment | 0 | ' | ||
Securities available for sale, at fair value | 1,073 | ' | ||
FFELP Student Loan Asset-backed Securities | ' | ' | ||
Securities Available for Sale | ' | ' | ||
Amortized Cost | 2,950 | [1] | 2,675 | [1] |
Gross Unrealized Gains | 12 | [1] | 23 | [1] |
Gross Unrealized Losses | 8 | [1] | 0 | [1] |
Other-than-Temporary Impairment | 0 | [1] | 0 | [1] |
Securities available for sale, at fair value | 2,954 | [1] | 2,698 | [1] |
Percent of principal balance and interest guaranteed by the U.S. Department of Education | 95.00% | 95.00% | ||
Equity Securities | ' | ' | ||
Securities Available for Sale | ' | ' | ||
Amortized Cost | 15 | 15 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 1 | 7 | ||
Other-than-Temporary Impairment | 0 | 0 | ||
Securities available for sale, at fair value | $14 | $8 | ||
[1] | Amounts are backed by a guarantee from the U.S. Department of Education of at least 95% of the principal balance and interest on such loans. |
Securities_Available_for_Sale_2
Securities Available for Sale (Schedule of Available for Sale Securities in an Unrealized Loss Position) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Securities Available for Sale | ' | ' |
Fair Value, Less than 12 Months | $22,471 | $5,255 |
Fair Value, 12 Months or Longer | 667 | 27 |
Fair Value, Total | 23,138 | 5,282 |
Gross Unrealized Losses, Less than 12 Months | 408 | 20 |
Gross Unrealized Losses, 12 Months or Longer | 21 | 0 |
Gross Unrealized Losses, Total | 429 | 20 |
Debt Securities | ' | ' |
Securities Available for Sale | ' | ' |
Fair Value, Less than 12 Months | 22,457 | 5,247 |
Fair Value, 12 Months or Longer | 667 | 27 |
Fair Value, Total | 23,124 | 5,274 |
Gross Unrealized Losses, Less than 12 Months | 407 | 13 |
Gross Unrealized Losses, 12 Months or Longer | 21 | 0 |
Gross Unrealized Losses, Total | 428 | 13 |
U.S. Government and Agency Securities | ' | ' |
Securities Available for Sale | ' | ' |
Fair Value, Less than 12 Months | 13,190 | 2,546 |
Fair Value, 12 Months or Longer | 241 | 27 |
Fair Value, Total | 13,431 | 2,573 |
Gross Unrealized Losses, Less than 12 Months | 252 | 5 |
Gross Unrealized Losses, 12 Months or Longer | 2 | 0 |
Gross Unrealized Losses, Total | 254 | 5 |
U.S. Treasury Securities | ' | ' |
Securities Available for Sale | ' | ' |
Fair Value, Less than 12 Months | 6,098 | 1,012 |
Fair Value, 12 Months or Longer | 0 | 0 |
Fair Value, Total | 6,098 | 1,012 |
Gross Unrealized Losses, Less than 12 Months | 80 | 2 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
Gross Unrealized Losses, Total | 80 | 2 |
U.S. Agency Securities | ' | ' |
Securities Available for Sale | ' | ' |
Fair Value, Less than 12 Months | 7,092 | 1,534 |
Fair Value, 12 Months or Longer | 241 | 27 |
Fair Value, Total | 7,333 | 1,561 |
Gross Unrealized Losses, Less than 12 Months | 172 | 3 |
Gross Unrealized Losses, 12 Months or Longer | 2 | 0 |
Gross Unrealized Losses, Total | 174 | 3 |
Corporate and Other Debt | ' | ' |
Securities Available for Sale | ' | ' |
Fair Value, Less than 12 Months | 9,267 | 2,701 |
Fair Value, 12 Months or Longer | 426 | 0 |
Fair Value, Total | 9,693 | 2,701 |
Gross Unrealized Losses, Less than 12 Months | 155 | 8 |
Gross Unrealized Losses, 12 Months or Longer | 19 | 0 |
Gross Unrealized Losses, Total | 174 | 8 |
Agency | ' | ' |
Securities Available for Sale | ' | ' |
Fair Value, Less than 12 Months | 2,099 | 1,057 |
Fair Value, 12 Months or Longer | 208 | 0 |
Fair Value, Total | 2,307 | 1,057 |
Gross Unrealized Losses, Less than 12 Months | 62 | 4 |
Gross Unrealized Losses, 12 Months or Longer | 14 | 0 |
Gross Unrealized Losses, Total | 76 | 4 |
Non-Agency | ' | ' |
Securities Available for Sale | ' | ' |
Fair Value, Less than 12 Months | 947 | ' |
Fair Value, 12 Months or Longer | 0 | ' |
Fair Value, Total | 947 | ' |
Gross Unrealized Losses, Less than 12 Months | 18 | ' |
Gross Unrealized Losses, 12 Months or Longer | 1 | ' |
Gross Unrealized Losses, Total | 19 | ' |
Auto Loan Asset-backed Securities | ' | ' |
Securities Available for Sale | ' | ' |
Fair Value, Less than 12 Months | 1,189 | 710 |
Fair Value, 12 Months or Longer | 65 | 0 |
Fair Value, Total | 1,254 | 710 |
Gross Unrealized Losses, Less than 12 Months | 3 | 1 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
Gross Unrealized Losses, Total | 3 | 1 |
Corporate Bonds | ' | ' |
Securities Available for Sale | ' | ' |
Fair Value, Less than 12 Months | 2,708 | 934 |
Fair Value, 12 Months or Longer | 119 | 0 |
Fair Value, Total | 2,827 | 934 |
Gross Unrealized Losses, Less than 12 Months | 50 | 3 |
Gross Unrealized Losses, 12 Months or Longer | 4 | 0 |
Gross Unrealized Losses, Total | 54 | 3 |
Collateralized Debt and Loan Obligations | ' | ' |
Securities Available for Sale | ' | ' |
Fair Value, Less than 12 Months | 1,073 | ' |
Fair Value, 12 Months or Longer | 0 | ' |
Fair Value, Total | 1,073 | ' |
Gross Unrealized Losses, Less than 12 Months | 14 | ' |
Gross Unrealized Losses, 12 Months or Longer | 0 | ' |
Gross Unrealized Losses, Total | 14 | ' |
FFELP Student Loan Asset-backed Securities | ' | ' |
Securities Available for Sale | ' | ' |
Fair Value, Less than 12 Months | 1,251 | ' |
Fair Value, 12 Months or Longer | 34 | ' |
Fair Value, Total | 1,285 | ' |
Gross Unrealized Losses, Less than 12 Months | 8 | ' |
Gross Unrealized Losses, 12 Months or Longer | 0 | ' |
Gross Unrealized Losses, Total | 8 | ' |
Equity Securities | ' | ' |
Securities Available for Sale | ' | ' |
Fair Value, Less than 12 Months | 14 | 8 |
Fair Value, 12 Months or Longer | 0 | 0 |
Fair Value, Total | 14 | 8 |
Gross Unrealized Losses, Less than 12 Months | 1 | 7 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
Gross Unrealized Losses, Total | $1 | $7 |
Securities_Available_for_Sale_3
Securities Available for Sale (Schedule of Amortized Cost and Fair Value of Available for Sale Debt Securities by Contractual Date) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Amortized Cost | ' |
Amortized cost, total | $47,160 |
Fair Value | ' |
Fair value, total | 46,852 |
Annualized Average Yield | ' |
Annualized average yield, total | 1.00% |
U.S. Government and Agency Securities | ' |
Amortized Cost | ' |
Amortized cost, total | 33,954 |
Fair Value | ' |
Fair value, total | 33,801 |
Annualized Average Yield | ' |
Annualized average yield, total | 0.90% |
U.S. Treasury Securities | ' |
Amortized Cost | ' |
Amortized cost, due within 1 year | 3,153 |
Amortized cost, after 1 year through 5 years | 16,510 |
Amortized cost, after 5 years through 10 years | 193 |
Amortized cost, total | 19,856 |
Fair Value | ' |
Fair value, due within 1 year | 3,159 |
Fair value, after 1 year through 5 years | 16,489 |
Fair value, after 5 years through 10 years | 193 |
Fair value, total | 19,841 |
Annualized Average Yield | ' |
Annualized average yield, due within 1 year | 0.30% |
Annualized average yield, after 1 year through 5 years | 0.80% |
Annualized average yield, after 5 years through 10 years | 2.00% |
U.S. Agency Securities | ' |
Amortized Cost | ' |
Amortized cost, after 5 years through 10 years | 2,396 |
Amortized cost, after 10 years | 11,702 |
Amortized cost, total | 14,098 |
Fair Value | ' |
Fair value, after 5 years through 10 years | 2,393 |
Fair value, after 10 years | 11,567 |
Fair value, total | 13,960 |
Annualized Average Yield | ' |
Annualized average yield, after 5 years through 10 years | 1.30% |
Annualized average yield, after 10 years | 1.30% |
Corporate and Other Debt | ' |
Amortized Cost | ' |
Amortized cost, total | 13,206 |
Fair Value | ' |
Fair value, total | 13,051 |
Annualized Average Yield | ' |
Annualized average yield, total | 1.20% |
Agency | ' |
Amortized Cost | ' |
Amortized cost, after 1 year through 5 years | 540 |
Amortized cost, after 5 years through 10 years | 530 |
Amortized cost, after 10 years | 1,312 |
Amortized cost, total | 2,382 |
Fair Value | ' |
Fair value, after 1 year through 5 years | 534 |
Fair value, after 5 years through 10 years | 517 |
Fair value, after 10 years | 1,255 |
Fair value, total | 2,306 |
Annualized Average Yield | ' |
Annualized average yield, after 1 year through 5 years | 0.90% |
Annualized average yield, after 5 years through 10 years | 1.00% |
Annualized average yield, after 10 years | 1.50% |
Non-Agency | ' |
Amortized Cost | ' |
Amortized cost, after 1 year through 5 years | 114 |
Amortized cost, after 5 years through 10 years | 60 |
Amortized cost, after 10 years | 1,005 |
Amortized cost, total | 1,179 |
Fair Value | ' |
Fair value, after 1 year through 5 years | 111 |
Fair value, after 5 years through 10 years | 59 |
Fair value, after 10 years | 992 |
Fair value, total | 1,162 |
Annualized Average Yield | ' |
Annualized average yield, after 1 year through 5 years | 1.10% |
Annualized average yield, after 5 years through 10 years | 1.40% |
Annualized average yield, after 10 years | 1.60% |
Auto Loan Asset-backed Securities | ' |
Amortized Cost | ' |
Amortized cost, after 1 year through 5 years | 1,921 |
Amortized cost, after 5 years through 10 years | 125 |
Amortized cost, total | 2,046 |
Fair Value | ' |
Fair value, after 1 year through 5 years | 1,919 |
Fair value, after 5 years through 10 years | 125 |
Fair value, total | 2,044 |
Annualized Average Yield | ' |
Annualized average yield, after 1 year through 5 years | 0.70% |
Annualized average yield, after 5 years through 10 years | 0.80% |
Corporate Bonds | ' |
Amortized Cost | ' |
Amortized cost, due within 1 year | 111 |
Amortized cost, after 1 year through 5 years | 2,702 |
Amortized cost, after 5 years through 10 years | 749 |
Amortized cost, total | 3,562 |
Fair Value | ' |
Fair value, due within 1 year | 111 |
Fair value, after 1 year through 5 years | 2,678 |
Fair value, after 5 years through 10 years | 723 |
Fair value, total | 3,512 |
Annualized Average Yield | ' |
Annualized average yield, due within 1 year | 0.60% |
Annualized average yield, after 1 year through 5 years | 1.20% |
Annualized average yield, after 5 years through 10 years | 2.10% |
Collateralized Debt and Loan Obligations | ' |
Amortized Cost | ' |
Amortized cost, after 1 year through 5 years | 50 |
Amortized cost, after 10 years | 1,037 |
Amortized cost, total | 1,087 |
Fair Value | ' |
Fair value, after 1 year through 5 years | 49 |
Fair value, after 10 years | 1,024 |
Fair value, total | 1,073 |
Annualized Average Yield | ' |
Annualized average yield, after 1 year through 5 years | 1.70% |
Annualized average yield, after 10 years | 1.40% |
FFELP Student Loan Asset-backed Securities | ' |
Amortized Cost | ' |
Amortized cost, after 1 year through 5 years | 85 |
Amortized cost, after 5 years through 10 years | 610 |
Amortized cost, after 10 years | 2,255 |
Amortized cost, total | 2,950 |
Fair Value | ' |
Fair value, after 1 year through 5 years | 85 |
Fair value, after 5 years through 10 years | 611 |
Fair value, after 10 years | 2,258 |
Fair value, total | $2,954 |
Annualized Average Yield | ' |
Annualized average yield, after 1 year through 5 years | 0.70% |
Annualized average yield, after 5 years through 10 years | 0.90% |
Annualized average yield, after 10 years | 1.00% |
Securities_Available_for_Sale_4
Securities Available for Sale (Schedule of Proceeds of Sale of Securities Available for Sale) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Available-for-sale Securities [Abstract] | ' | ' | ' | ' |
Gross realized gains | $6 | $31 | $47 | $56 |
Gross realized losses | $1 | $0 | $4 | $3 |
Collateralized_Transactions_Na
Collateralized Transactions (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Billions, unless otherwise specified | ||
Customer margin loans outstanding | $21.90 | $24 |
Fair value of financial instruments received as collateral where the Company is permitted to sell or repledge the securities | 574 | 560 |
Fair value of financial instruments received as collateral where the Company has sold or repledged | $424 | $397 |
Collateralized_Transactions_Ba
Collateralized Transactions (Balance Sheet Offsetting) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Federal Funds Sold and Securities Purchased under Agreements to Resell | ' | ' | ||
Gross amount | $211,457,000,000 | [1] | $203,448,000,000 | [2] |
Amounts offset in the Condensed Consolidated Statements of Financial Condition | -77,469,000,000 | [3] | -69,036,000,000 | [3] |
Net amount presented in the Condensed Consolidated Statements of Financial Condition | 133,988,000,000 | 134,412,000,000 | ||
Financial instruments not offset in the Condensed Consolidated Statements of Financial Condition | -127,980,000,000 | [4] | -126,303,000,000 | [4] |
Net exposure | 6,008,000,000 | 8,109,000,000 | ||
Securities Borrowed | ' | ' | ||
Gross amount | 145,647,000,000 | [1] | 127,002,000,000 | [2] |
Amounts offset in the Condensed Consolidated Statements of Financial Condition | -6,478,000,000 | [3] | -5,301,000,000 | [3] |
Net amount presented in the Condensed Consolidated Statements of Financial Condition | 139,169,000,000 | 121,701,000,000 | ||
Financial instruments not offset in the Condensed Consolidated Statements of Financial Condition | -122,345,000,000 | [4] | -105,849,000,000 | [4] |
Net exposure | 16,824,000,000 | 15,852,000,000 | ||
Securities Sold under Agreements to Repurchase | ' | ' | ||
Gross amount | 216,867,000,000 | [1] | 191,710,000,000 | [2] |
Amounts offset in the Condensed Consolidated Statements of Financial Condition | -77,469,000,000 | [3] | -69,036,000,000 | [3] |
Net amount presented in the Condensed Consolidated Statements of Financial Condition | 139,398,000,000 | 122,674,000,000 | ||
Financial instruments not offset in the Condensed Consolidated Statements of Financial Condition | -105,061,000,000 | [4] | -103,521,000,000 | [4] |
Net exposure | 34,337,000,000 | 19,153,000,000 | ||
Securities Loaned | ' | ' | ||
Gross amount | 39,285,000,000 | [1] | 42,150,000,000 | [2] |
Amounts offset in the Condensed Consolidated Statements of Financial Condition | -6,478,000,000 | [3] | -5,301,000,000 | [3] |
Net amount presented in the Condensed Consolidated Statements of Financial Condition | 32,807,000,000 | 36,849,000,000 | ||
Financial instruments not offset in the Condensed Consolidated Statements of Financial Condition | -31,857,000,000 | [4] | -30,395,000,000 | [4] |
Net exposure | 950,000,000 | 6,454,000,000 | ||
Federal funds sold and securities purchased under agreements to resell, which are either not subject to master netting agreements or collateral agreements, or are subject to such agreements but the entity has not determined the agreements to be legally enforceable | 5,300,000,000 | 7,400,000,000 | ||
Securities borrowed, which are either not subject to master netting agreements or collateral agreements, or are subject to such agreements but the entity has not determined the agreements to be legally enforceable | 12,500,000,000 | 8,600,000,000 | ||
Securities sold under agreements to repurchase, which are either not subject to master netting agreements or collateral agreements, or are subject to such agreements but the entity has not determined the agreements to be legally enforceable | 33,000,000,000 | 17,500,000,000 | ||
Securities loaned, which are either not subject to master netting agreements or collateral agreements, or are subject to such agreements but the entity has not determined the agreements to be legally enforceable | ' | $600,000,000 | ||
[1] | Amounts include $5.3 billion of Federal funds sold and securities purchased under agreements to resell, $12.5 billion of Securities borrowed and $33.0 billion of Securities sold under agreements to repurchase which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. | |||
[2] | Amounts include $7.4 billion of Federal funds sold and securities purchased under agreements to resell, $8.6 billion of Securities borrowed, $17.5 billion of Securities sold under agreements to repurchase and $0.6 billion of Securities loaned which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. | |||
[3] | Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default and where certain other criteria are met in accordance with applicable offsetting accounting guidance. | |||
[4] | Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. |
Collateralized_Transactions_Fi
Collateralized Transactions (Financial Instruments Owned That Have Been Loaned Or Pledged To Counterparties) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Trading assets | $46,991 | $56,908 |
U.S. Government and Agency Securities | ' | ' |
Trading assets | 19,501 | 15,273 |
Other Sovereign Government Obligations | ' | ' |
Trading assets | 4,047 | 3,278 |
Corporate and Other Debt | ' | ' |
Trading assets | 13,173 | 11,980 |
Corporate Equities | ' | ' |
Trading assets | $10,270 | $26,377 |
Collateralized_Transactions_Ca
Collateralized Transactions (Cash And Securities Deposited With Clearing Organizations Or Segregated Under Federal And Other Regulations Or Requirements) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Collateralized Transactions | ' | ' | ||
Cash Reserve Deposit Required and Made | $37,392 | $30,970 | ||
Securities | 12,922 | [1] | 13,424 | [1] |
Total | $50,314 | $44,394 | ||
[1] | Securities deposited with clearing organizations or segregated under federal and other regulations or requirements are sourced from Federal funds sold and securities purchased under agreements to resell and Trading assets in the condensed consolidated statements of financial condition. |
Variable_Interest_Entities_and2
Variable Interest Entities and Securitization Activities (Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Nonredeemable noncontrolling interests | $3,113,000,000 | ' | $3,319,000,000 |
Additional maximum exposure to loss | 68,000,000 | ' | 58,000,000 |
Securities issued by SPEs | 10,200,000,000 | ' | ' |
Proceeds from new securitization transactions | 18,800,000,000 | 13,700,000,000 | ' |
Proceeds from cash flows from retained interests in securitization transactions | 3,800,000,000 | 3,200,000,000 | ' |
Servicing advances, net of reserves | 88,000,000 | ' | 49,000,000 |
Mortgage servicing rights | 8,000,000 | ' | 7,000,000 |
Residential Mortgage Loans | ' | ' | ' |
Securities issued by SPEs | 6,000,000,000 | ' | ' |
U.S. Agency Collateralized Mortgage Obligations | ' | ' | ' |
Securities issued by SPEs | 900,000,000 | ' | ' |
Commercial Mortgage Loans | ' | ' | ' |
Securities issued by SPEs | 1,000,000,000 | ' | ' |
Collateralized Debt Obligations | ' | ' | ' |
Securities issued by SPEs | 400,000,000 | ' | ' |
Other Consumer Loans | ' | ' | ' |
Securities issued by SPEs | 1,900,000,000 | ' | ' |
Managed Real Estate Partnerships | ' | ' | ' |
Nonredeemable noncontrolling interests | $1,742,000,000 | ' | $1,804,000,000 |
Variable_Interest_Entities_and3
Variable Interest Entities and Securitization Activities (Consolidated VIEs) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Mortgage and Asset-Backed Securitizations | ' | ' |
Variable Interest Entity | ' | ' |
VIE assets | $752 | $978 |
VIE liabilities | 423 | 646 |
Collateralized Debt Obligations | ' | ' |
Variable Interest Entity | ' | ' |
VIE assets | 0 | 52 |
VIE liabilities | 86 | 16 |
Managed Real Estate Partnerships | ' | ' |
Variable Interest Entity | ' | ' |
VIE assets | 2,269 | 2,394 |
VIE liabilities | 59 | 83 |
Other Structured Financings | ' | ' |
Variable Interest Entity | ' | ' |
VIE assets | 1,187 | 983 |
VIE liabilities | 66 | 65 |
Other | ' | ' |
Variable Interest Entity | ' | ' |
VIE assets | 1,343 | 1,676 |
VIE liabilities | $163 | $313 |
Variable_Interest_Entities_and4
Variable Interest Entities and Securitization Activities (Non-Consolidated VIEs) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Mortgage and Asset-Backed Securities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | $163,017 | [1] | $251,689 | [2] |
Maximum exposure to loss | 14,267 | 22,500 | ||
Mortgage and Asset-Backed Securities | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 14,267 | 22,436 | ||
Mortgage and Asset-Backed Securities | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 0 | 11 | ||
Mortgage and Asset-Backed Securities | Debt and Equity Interests | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 14,257 | [3] | 22,280 | [4] |
Mortgage and Asset-Backed Securities | Debt and Equity Interests | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 14,257 | [3] | 22,280 | [4] |
Mortgage and Asset-Backed Securities | Derivative and Other Contracts | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 10 | 154 | ||
Mortgage and Asset-Backed Securities | Derivative and Other Contracts | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 10 | 156 | ||
Mortgage and Asset-Backed Securities | Derivative and Other Contracts | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 0 | 11 | ||
Mortgage and Asset-Backed Securities | Commitments, Guarantees and Other | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 0 | 66 | ||
Mortgage and Asset-Backed Securities | Commitments, Guarantees and Other | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 0 | 0 | ||
Residential Mortgage | ' | ' | ||
Variable Interest Entity | ' | ' | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 17,200 | 18,300 | ||
Residential Mortgage | Debt and Equity Interests | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 1,700 | 1,000 | ||
Commercial Mortgage | ' | ' | ||
Variable Interest Entity | ' | ' | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 47,500 | 53,800 | ||
Commercial Mortgage | Debt and Equity Interests | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 1,100 | 1,500 | ||
U.S. Agency Collateralized Mortgage Obligations | ' | ' | ||
Variable Interest Entity | ' | ' | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 56,900 | 126,300 | ||
U.S. Agency Collateralized Mortgage Obligations | Debt and Equity Interests | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 7,500 | 14,800 | ||
Other Consumer and Commercial Loans | ' | ' | ||
Variable Interest Entity | ' | ' | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 41,400 | 53,300 | ||
Other Consumer and Commercial Loans | Debt and Equity Interests | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 4,000 | 5,000 | ||
Collateralized Debt Obligations | ' | ' | ||
Variable Interest Entity | ' | ' | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 26,153 | [1] | 13,178 | [2] |
Maximum exposure to loss | 2,085 | 1,224 | ||
Collateralized Debt Obligations | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 1,924 | 1,181 | ||
Collateralized Debt Obligations | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 2 | 2 | ||
Collateralized Debt Obligations | Debt and Equity Interests | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 1,920 | [3] | 1,173 | [4] |
Collateralized Debt Obligations | Debt and Equity Interests | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 1,920 | [3] | 1,173 | [4] |
Collateralized Debt Obligations | Derivative and Other Contracts | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 23 | 51 | ||
Collateralized Debt Obligations | Derivative and Other Contracts | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 4 | 8 | ||
Collateralized Debt Obligations | Derivative and Other Contracts | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 2 | 2 | ||
Collateralized Debt Obligations | Commitments, Guarantees and Other | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 142 | 0 | ||
Collateralized Debt Obligations | Commitments, Guarantees and Other | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 0 | 0 | ||
Municipal Tender Option Bonds | ' | ' | ||
Variable Interest Entity | ' | ' | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 3,129 | [1] | 3,390 | [2] |
Maximum exposure to loss | 1,996 | 2,158 | ||
Municipal Tender Option Bonds | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 25 | 4 | ||
Municipal Tender Option Bonds | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 1 | 0 | ||
Municipal Tender Option Bonds | Debt and Equity Interests | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 21 | [3] | 0 | [4] |
Municipal Tender Option Bonds | Debt and Equity Interests | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 21 | [3] | 0 | [4] |
Municipal Tender Option Bonds | Derivative and Other Contracts | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 1,975 | 2,158 | ||
Municipal Tender Option Bonds | Derivative and Other Contracts | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 4 | 4 | ||
Municipal Tender Option Bonds | Derivative and Other Contracts | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 1 | 0 | ||
Municipal Tender Option Bonds | Commitments, Guarantees and Other | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 0 | 0 | ||
Municipal Tender Option Bonds | Commitments, Guarantees and Other | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 0 | 0 | ||
Other Structured Financings | ' | ' | ||
Variable Interest Entity | ' | ' | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 1,802 | [1] | 1,811 | [2] |
Maximum exposure to loss | 1,727 | 1,732 | ||
Other Structured Financings | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 670 | 663 | ||
Other Structured Financings | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 9 | 12 | ||
Other Structured Financings | Debt and Equity Interests | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 1,071 | [3] | 1,053 | [4] |
Other Structured Financings | Debt and Equity Interests | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 670 | [3] | 663 | [4] |
Other Structured Financings | Derivative and Other Contracts | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 0 | 0 | ||
Other Structured Financings | Derivative and Other Contracts | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 0 | 0 | ||
Other Structured Financings | Derivative and Other Contracts | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 0 | 0 | ||
Other Structured Financings | Commitments, Guarantees and Other | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 656 | 679 | ||
Other Structured Financings | Commitments, Guarantees and Other | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 9 | 12 | ||
Other | ' | ' | ||
Variable Interest Entity | ' | ' | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 10,036 | [1] | 14,029 | [2] |
Maximum exposure to loss | 3,769 | 4,333 | ||
Other | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 3,038 | 3,561 | ||
Other | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 55 | 172 | ||
Other | Debt and Equity Interests | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 2,965 | [3] | 3,387 | [4] |
Other | Debt and Equity Interests | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 2,965 | [3] | 3,387 | [4] |
Other | Derivative and Other Contracts | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 164 | 562 | ||
Other | Derivative and Other Contracts | Assets | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 73 | 174 | ||
Other | Derivative and Other Contracts | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | 55 | 172 | ||
Other | Commitments, Guarantees and Other | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Maximum exposure to loss | 640 | 384 | ||
Other | Commitments, Guarantees and Other | Liabilities | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Carrying value of exposure to loss | $0 | $0 | ||
[1] | Mortgage and asset-backed securitizations include VIE assets as follows: $17.2 billion of residential mortgages; $47.5 billion of commercial mortgages; $56.9 billion of U.S. agency collateralized mortgage obligations; and $41.4 billion of other consumer or commercial loans. | |||
[2] | Mortgage and asset-backed securitizations include VIE assets as follows: $18.3 billion of residential mortgages; $53.8 billion of commercial mortgages; $126.3 billion of U.S. agency collateralized mortgage obligations; and $53.3 billion of other consumer or commercial loans. | |||
[3] | Mortgage and asset-backed securitizations include VIE debt and equity interests as follows: $1.7 billion of residential mortgages; $1.1 billion of commercial mortgages; $7.5 billion of U.S. agency collateralized mortgage obligations; and $4.0 billion of other consumer or commercial loans. | |||
[4] | Mortgage and asset-backed securitizations include VIE debt and equity interests as follows: $1.0 billion of residential mortgages; $1.5 billion of commercial mortgages; $14.8 billion of U.S. agency collateralized mortgage obligations; and $5.0 billion of other consumer or commercial loans. |
Variable_Interest_Entities_and5
Variable Interest Entities and Securitization Activities (Information Regarding SPEs) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivative assets (fair value) | $35,438 | $36,197 | ||
Special Purpose Entities | ' | ' | ||
Retained interests (fair value) | 2,384 | 3,212 | ||
Interests purchased in the secondary market (fair value) | 666 | 801 | ||
Derivative assets (fair value) | 852 | 1,127 | ||
Derivative liabilities (fair value) | 186 | 325 | ||
Special Purpose Entities | Investment Grade | ' | ' | ||
Retained interests (fair value) | 708 | 1,546 | ||
Interests purchased in the secondary market (fair value) | 462 | 623 | ||
Special Purpose Entities | Noninvestment Grade | ' | ' | ||
Retained interests (fair value) | 1,676 | 1,666 | ||
Interests purchased in the secondary market (fair value) | 204 | 178 | ||
Special Purpose Entities | Residential Mortgage | ' | ' | ||
SPE assets (unpaid principal balance) | 33,610 | [1] | 36,750 | [1] |
Retained interests (fair value) | 128 | 55 | ||
Interests purchased in the secondary market (fair value) | 86 | 124 | ||
Derivative assets (fair value) | 0 | 2 | ||
Derivative liabilities (fair value) | 2 | 22 | ||
Special Purpose Entities | Residential Mortgage | Investment Grade | ' | ' | ||
Retained interests (fair value) | 0 | 1 | ||
Interests purchased in the secondary market (fair value) | 4 | 11 | ||
Special Purpose Entities | Residential Mortgage | Noninvestment Grade | ' | ' | ||
Retained interests (fair value) | 128 | 54 | ||
Interests purchased in the secondary market (fair value) | 82 | 113 | ||
Special Purpose Entities | Commercial Mortgage Loans | ' | ' | ||
SPE assets (unpaid principal balance) | 54,648 | [1] | 70,824 | [1] |
Retained interests (fair value) | 236 | 186 | ||
Interests purchased in the secondary market (fair value) | 137 | 158 | ||
Derivative assets (fair value) | 729 | 948 | ||
Derivative liabilities (fair value) | 0 | 0 | ||
Special Purpose Entities | Commercial Mortgage Loans | Investment Grade | ' | ' | ||
Retained interests (fair value) | 10 | 77 | ||
Interests purchased in the secondary market (fair value) | 80 | 124 | ||
Special Purpose Entities | Commercial Mortgage Loans | Noninvestment Grade | ' | ' | ||
Retained interests (fair value) | 226 | 109 | ||
Interests purchased in the secondary market (fair value) | 57 | 34 | ||
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | ' | ' | ||
SPE assets (unpaid principal balance) | 18,348 | [1] | 17,787 | [1] |
Retained interests (fair value) | 698 | 1,468 | ||
Interests purchased in the secondary market (fair value) | 27 | 99 | ||
Derivative assets (fair value) | 0 | 0 | ||
Derivative liabilities (fair value) | 0 | 0 | ||
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | Investment Grade | ' | ' | ||
Retained interests (fair value) | 698 | 1,468 | ||
Interests purchased in the secondary market (fair value) | 27 | 99 | ||
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | Noninvestment Grade | ' | ' | ||
Retained interests (fair value) | 0 | 0 | ||
Interests purchased in the secondary market (fair value) | 0 | 0 | ||
Special Purpose Entities | Credit-Linked Notes and Other | ' | ' | ||
SPE assets (unpaid principal balance) | 12,436 | [1] | 14,701 | [1] |
Retained interests (fair value) | 1,322 | 1,503 | ||
Interests purchased in the secondary market (fair value) | 416 | 420 | ||
Derivative assets (fair value) | 123 | 177 | ||
Derivative liabilities (fair value) | 184 | 303 | ||
Special Purpose Entities | Credit-Linked Notes and Other | Investment Grade | ' | ' | ||
Retained interests (fair value) | 0 | 0 | ||
Interests purchased in the secondary market (fair value) | 351 | 389 | ||
Special Purpose Entities | Credit-Linked Notes and Other | Noninvestment Grade | ' | ' | ||
Retained interests (fair value) | 1,322 | 1,503 | ||
Interests purchased in the secondary market (fair value) | $65 | $31 | ||
[1] | Amounts include assets transferred by unrelated transferors. |
Variable_Interest_Entities_and6
Variable Interest Entities and Securitization Activities (Fair Value of Assets and Liabilities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative assets (fair value) | $35,438 | $36,197 |
Special Purpose Entities | ' | ' |
Retained interests (fair value) | 2,384 | 3,212 |
Interests purchased in the secondary market (fair value) | 666 | 801 |
Derivative assets (fair value) | 852 | 1,127 |
Derivative liabilities (fair value) | 186 | 325 |
Special Purpose Entities | Level 1 | ' | ' |
Retained interests (fair value) | 0 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Derivative assets (fair value) | 0 | 0 |
Derivative liabilities (fair value) | 0 | 0 |
Special Purpose Entities | Level 2 | ' | ' |
Retained interests (fair value) | 906 | 1,560 |
Interests purchased in the secondary market (fair value) | 633 | 756 |
Derivative assets (fair value) | 624 | 774 |
Derivative liabilities (fair value) | 172 | 295 |
Special Purpose Entities | Level 3 | ' | ' |
Retained interests (fair value) | 1,478 | 1,652 |
Interests purchased in the secondary market (fair value) | 33 | 45 |
Derivative assets (fair value) | 228 | 353 |
Derivative liabilities (fair value) | 14 | 30 |
Special Purpose Entities | Investment Grade | ' | ' |
Retained interests (fair value) | 708 | 1,546 |
Interests purchased in the secondary market (fair value) | 462 | 623 |
Special Purpose Entities | Investment Grade | Level 1 | ' | ' |
Retained interests (fair value) | 0 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Investment Grade | Level 2 | ' | ' |
Retained interests (fair value) | 708 | 1,476 |
Interests purchased in the secondary market (fair value) | 454 | 617 |
Special Purpose Entities | Investment Grade | Level 3 | ' | ' |
Retained interests (fair value) | 0 | 70 |
Interests purchased in the secondary market (fair value) | 8 | 6 |
Special Purpose Entities | Noninvestment Grade | ' | ' |
Retained interests (fair value) | 1,676 | 1,666 |
Interests purchased in the secondary market (fair value) | 204 | 178 |
Special Purpose Entities | Noninvestment Grade | Level 1 | ' | ' |
Retained interests (fair value) | 0 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Noninvestment Grade | Level 2 | ' | ' |
Retained interests (fair value) | 198 | 84 |
Interests purchased in the secondary market (fair value) | 179 | 139 |
Special Purpose Entities | Noninvestment Grade | Level 3 | ' | ' |
Retained interests (fair value) | 1,478 | 1,582 |
Interests purchased in the secondary market (fair value) | $25 | $39 |
Variable_Interest_Entities_and7
Variable Interest Entities and Securitization Activities (Transfers of Assets Treated as Secured Financings) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Credit-Linked Notes | ' | ' |
Assets, carrying value | $48 | $283 |
Liabilities, carrying value | 41 | 222 |
Equity-Linked Transactions | ' | ' |
Assets, carrying value | 39 | 422 |
Liabilities, carrying value | 35 | 405 |
Other | ' | ' |
Assets, carrying value | 360 | 29 |
Liabilities, carrying value | $359 | $28 |
Variable_Interest_Entities_and8
Variable Interest Entities and Securitization Activities (Mortgage Servicing Activities for SPEs) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Amounts past due 90 days or greater (unpaid principal balance) | $1,158 | $840 | ||
Unconsolidated SPEs | Residential Mortgage | ' | ' | ||
Assets serviced (unpaid principal balance) | 780 | 821 | ||
Amounts past due 90 days or greater (unpaid principal balance) | 75 | [1] | 86 | [1] |
Percentage of amounts past due 90 days or greater | 9.60% | [1] | 10.40% | [1] |
Credit losses | 2 | 3 | ||
Unconsolidated SPEs | Commercial Mortgage | ' | ' | ||
Assets serviced (unpaid principal balance) | 4,041 | 4,760 | ||
Amounts past due 90 days or greater (unpaid principal balance) | 0 | [1] | 0 | [1] |
Percentage of amounts past due 90 days or greater | 0.00% | [1] | 0.00% | [1] |
Credit losses | 0 | 0 | ||
Consolidated SPEs | Residential Mortgage | ' | ' | ||
Assets serviced (unpaid principal balance) | 818 | 1,141 | ||
Amounts past due 90 days or greater (unpaid principal balance) | 45 | [1] | 43 | [1] |
Percentage of amounts past due 90 days or greater | 5.50% | [1] | 3.80% | [1] |
Credit losses | $12 | $2 | ||
[1] | Amounts include loans that are at least 90 days contractually delinquent, loans for which the borrower has filed for bankruptcy, loans in foreclosure and real estate owned. |
Financing_Receivables_Loans_He
Financing Receivables (Loans Held for Investment) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Loans Held-for-investment | ' | ' | ' | ' |
Loans held for investments, gross of allowances for loan losses | $33,138 | $24,023 | ' | ' |
Allowance for loan losses | -166 | -106 | -101 | -17 |
Loans held for investment, net of allowances for loan losses | 32,972 | 23,917 | ' | ' |
Loans Impaired | ' | ' | ' | ' |
Percent of loan portfolio that is current | 99.00% | 99.00% | ' | ' |
Loans held for sale | 4,762 | 5,129 | ' | ' |
Commercial and Industrial | ' | ' | ' | ' |
Loans Held-for-investment | ' | ' | ' | ' |
Loans held for investments, gross of allowances for loan losses | 11,953 | 9,449 | ' | ' |
Allowance for loan losses | -148 | -96 | -88 | -14 |
Loans Impaired | ' | ' | ' | ' |
Impaired loans | 117 | 19 | ' | ' |
Consumer Loans | ' | ' | ' | ' |
Loans Held-for-investment | ' | ' | ' | ' |
Loans held for investments, gross of allowances for loan losses | 10,299 | 7,618 | ' | ' |
Allowance for loan losses | -1 | -3 | -7 | -1 |
Residential Real Estate Loans | ' | ' | ' | ' |
Loans Held-for-investment | ' | ' | ' | ' |
Loans held for investments, gross of allowances for loan losses | 8,784 | 6,630 | ' | ' |
Allowance for loan losses | -4 | -5 | -3 | -1 |
Loans Impaired | ' | ' | ' | ' |
Impaired loans | ' | 1 | ' | ' |
Wholesale Real Estate Loans | ' | ' | ' | ' |
Loans Held-for-investment | ' | ' | ' | ' |
Loans held for investments, gross of allowances for loan losses | 2,102 | 326 | ' | ' |
Allowance for loan losses | -13 | -2 | -3 | -1 |
Loans Impaired | ' | ' | ' | ' |
Impaired loans | 4 | ' | ' | ' |
Commercial Asset-backed and Wholesale Real Estate Loans | Doubtful | ' | ' | ' | ' |
Loans Held-for-investment | ' | ' | ' | ' |
Loans held for investment, net of allowances for loan losses | $21 | $25 | ' | ' |
Financing_Receivables_Loans_an
Financing Receivables (Loans and Lending-related Commitments) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Other Revenues | Other Revenues | Other Non-interest Expenses | Other Non-interest Expenses | Commercial and Industrial | Commercial and Industrial | Commercial and Industrial | Consumer Loans | Consumer Loans | Consumer Loans | Residential Real Estate Loans | Residential Real Estate Loans | Residential Real Estate Loans | Wholesale Real Estate Loans | Wholesale Real Estate Loans | Wholesale Real Estate Loans | ||||
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | $106 | $17 | ' | ' | ' | ' | ' | $96 | $14 | ' | $3 | $1 | ' | $5 | $1 | ' | $2 | $1 | ' |
Gross charge-offs | -15 | -12 | ' | ' | ' | ' | ' | -12 | -12 | ' | 0 | 0 | ' | -1 | 0 | ' | -2 | 0 | ' |
Gross recoveries | ' | 11 | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 0 | ' | ' | 0 | ' | ' | 11 | ' |
Net charge-offs | -15 | -1 | ' | ' | ' | ' | ' | -12 | -12 | ' | 0 | 0 | ' | -1 | 0 | ' | -2 | 11 | ' |
Provision for loan losses | 75 | 85 | ' | 41 | 31 | ' | ' | 64 | 86 | ' | -2 | 6 | ' | 0 | 2 | ' | 13 | -9 | ' |
Ending balance | 166 | 101 | ' | ' | ' | ' | ' | 148 | 88 | ' | 1 | 7 | ' | 4 | 3 | ' | 13 | 3 | ' |
Loans, additional information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance, collectively evaluated for impairment | 143 | ' | 104 | ' | ' | ' | ' | 129 | ' | 94 | 1 | ' | 3 | 4 | ' | 5 | 9 | ' | 2 |
Allowance, individually evaluated for impairment | 23 | ' | 2 | ' | ' | ' | ' | 19 | ' | 2 | 0 | ' | 0 | 0 | ' | 0 | 4 | ' | 0 |
Loans, collectively evaluated for impairment | 32,993 | ' | 23,992 | ' | ' | ' | ' | 11,826 | ' | 9,419 | 10,299 | ' | 7,618 | 8,776 | ' | 6,629 | 2,092 | ' | 326 |
Loans, individually evaluated for impairment | 145 | ' | 31 | ' | ' | ' | ' | 127 | ' | 30 | 0 | ' | 0 | 8 | ' | 1 | 10 | ' | 0 |
Total loans evaluated for impairment | 33,138 | ' | 24,023 | ' | ' | ' | ' | 11,953 | ' | 9,449 | 10,299 | ' | 7,618 | 8,784 | ' | 6,630 | 2,102 | ' | 326 |
Allowance for lending-related commitments rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | 91 | 24 | ' | ' | ' | ' | ' | 90 | 19 | ' | 0 | 3 | ' | 0 | 0 | ' | 1 | 2 | ' |
Provision for lending-related commitments | 41 | 42 | ' | ' | ' | 12 | 34 | 41 | 43 | ' | 0 | -1 | ' | 0 | 0 | ' | 0 | 0 | ' |
Other | -10 | ' | ' | ' | ' | ' | ' | -10 | ' | ' | 0 | ' | ' | 0 | ' | ' | 0 | ' | ' |
Ending balance | 122 | 66 | ' | ' | ' | ' | ' | 121 | 62 | ' | 0 | 2 | ' | 0 | 0 | ' | 1 | 2 | ' |
Lending-related commitments, additional information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance, collectively evaluated for impairment | 122 | ' | 87 | ' | ' | ' | ' | 121 | ' | 86 | 0 | ' | 0 | 0 | ' | 0 | 1 | ' | 1 |
Allowance, individually evaluated for impairment | 0 | ' | 4 | ' | ' | ' | ' | 0 | ' | 4 | 0 | ' | 0 | 0 | ' | 0 | 0 | ' | 0 |
Lending-related commitments, collectively evaluated for impairment | 60,548 | ' | 46,298 | ' | ' | ' | ' | 57,137 | ' | 44,079 | 1,770 | ' | 1,406 | 1,407 | ' | 712 | 234 | ' | 101 |
Lending-related commitments, individually evaluated for impairment | 0 | ' | 47 | ' | ' | ' | ' | 0 | ' | 47 | 0 | ' | 0 | 0 | ' | 0 | 0 | ' | 0 |
Total lending-related commitments evaluated for impairment | $60,548 | ' | $46,345 | ' | ' | ' | ' | $57,137 | ' | $44,126 | $1,770 | ' | $1,406 | $1,407 | ' | $712 | $234 | ' | $101 |
Financing_Receivables_Employee
Financing Receivables (Employee Loans) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Employee Retainment and Recruitment Program | Employee Retainment and Recruitment Program | Employee Retainment and Recruitment Program | Employee Retainment and Recruitment Program | After-tax Leveraged Investment Arrangements | After-tax Leveraged Investment Arrangements |
Minimum | Maximum | |||||
Employee Loans | ' | ' | ' | ' | ' | ' |
Employee loan repayment terms | ' | ' | '1 year | '12 years | ' | ' |
Employee loans outstanding | $5,533 | $5,998 | ' | ' | $139 | $172 |
Allowance for employee loans | $124 | $131 | ' | ' | $99 | $108 |
Goodwill_and_Net_Intangible_As2
Goodwill and Net Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | |
Beginning Balance | $6,650 | [1] | ' |
Foreign currency translation adjustments and other | -31 | ' | |
Goodwill disposed of during the period | -28 | [2],[3] | ' |
Ending Balance | 6,591 | [1] | ' |
Goodwill, accumulated impairments | 700 | ' | |
Goodwill before accumulated impairments | 7,291 | 7,350 | |
Institutional Securities | ' | ' | |
Beginning Balance | 337 | [1],[4] | ' |
Foreign currency translation adjustments and other | -31 | [4] | ' |
Goodwill disposed of during the period | -17 | [2],[3],[4] | ' |
Ending Balance | 289 | [1],[4] | ' |
Goodwill, accumulated impairments | 673 | ' | |
Wealth Management | ' | ' | |
Beginning Balance | 5,573 | [1],[4] | ' |
Foreign currency translation adjustments and other | 0 | [4] | ' |
Goodwill disposed of during the period | -11 | [2],[3],[4] | ' |
Ending Balance | 5,562 | [1],[4] | ' |
Investment Management | ' | ' | |
Beginning Balance | 740 | [1] | ' |
Foreign currency translation adjustments and other | 0 | ' | |
Goodwill disposed of during the period | 0 | [2],[3] | ' |
Ending Balance | 740 | [1] | ' |
Goodwill, accumulated impairments | $27 | ' | |
[1] | The amount of the Company’s goodwill before accumulated impairments of $700 million, which included $673 million related to the Institutional Securities business segment and $27 million related to the Investment Management business segment, was $7,291 million and $7,350 million at September 30, 2013 and December 31, 2012, respectively. | ||
[2] | In 2011, the Company announced that it had reached an agreement with the employees of its in-house quantitative proprietary trading unit, Process Driven Trading (“PDTâ€), within the Institutional Securities business segment, whereby PDT employees will acquire certain assets from the Company and launch an independent advisory firm. This transaction closed on January 1, 2013. | ||
[3] | The Wealth Management business segment sold the U.K. operations of Global Stock Plan Services business to Computershare Limited. This transaction closed on May 31, 2013. | ||
[4] | On January 1, 2013, the International Wealth Management business was transferred from the Wealth Management business segment to the Equity division within the Institutional Securities business segment. Accordingly, prior period amounts have been recast to reflect the International Wealth Management business as part of the Institutional Securities business segment. |
Goodwill_and_Net_Intangible_As3
Goodwill and Net Intangible Assets (Changes in Carrying Amount of Intangible Assets) (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | |
Intangible Assets [Line Items] | ' | ' | |
Amortizable net intangible assets, beginning balance | $3,776 | ' | |
Foreign currency translation adjustments and other | -2 | ' | |
Amortization expense | -259 | ' | |
Impairment losses | -9 | [1] | ' |
Amortizable net intangible assets, ending balance | 3,506 | ' | |
Mortgage servicing rights | 8 | 7 | |
Net intangible assets | 3,514 | 3,783 | |
Institutional Securities | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Amortizable net intangible assets, beginning balance | 175 | ' | |
Foreign currency translation adjustments and other | -2 | ' | |
Amortization expense | -9 | ' | |
Impairment losses | -2 | [1] | ' |
Amortizable net intangible assets, ending balance | 162 | ' | |
Mortgage servicing rights | 0 | 0 | |
Net intangible assets | 162 | 175 | |
Wealth Management | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Amortizable net intangible assets, beginning balance | 3,600 | ' | |
Foreign currency translation adjustments and other | 0 | ' | |
Amortization expense | -250 | ' | |
Impairment losses | -7 | [1] | ' |
Amortizable net intangible assets, ending balance | 3,343 | ' | |
Mortgage servicing rights | 8 | 7 | |
Net intangible assets | 3,351 | 3,607 | |
Investment Management | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Amortizable net intangible assets, beginning balance | 1 | ' | |
Foreign currency translation adjustments and other | 0 | ' | |
Amortization expense | 0 | ' | |
Impairment losses | 0 | [1] | ' |
Amortizable net intangible assets, ending balance | 1 | ' | |
Mortgage servicing rights | 0 | 0 | |
Net intangible assets | $1 | $1 | |
[1] | Impairment losses are recorded within Other expenses. |
Borrowings_and_Other_Secured_F2
Borrowings and Other Secured Financings (Narratives) (Details) (USD $) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Dec. 31, 2012 | Apr. 25, 2013 | Feb. 25, 2013 | 21-May-13 | |
Senior Unsecured Debt | Senior Unsecured Debt | 10 Year Subordinated Debt | |||
Notes issued, principal amount | $25,000,000,000 | ' | $3,700,000,000 | $4,500,000,000 | $2,000,000,000 |
Notes matured or retired | 31,000,000,000 | ' | ' | ' | ' |
Weighted average maturity of long-term borrowings | '5 years 4 months | '5 years 4 months | ' | ' | ' |
Long-term debt outstanding | $157,805,000,000 | $169,571,000,000 | ' | ' | ' |
Borrowings_and_Other_Secured_F3
Borrowings and Other Secured Financings (Components of Long-term Borrowings) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Borrowings and Other Secured Financings | ' | ' |
Senior debt | $145,515 | $158,899 |
Subordinated debt | 7,478 | 5,845 |
Junior subordinated debentures | 4,812 | 4,827 |
Total | $157,805 | $169,571 |
Borrowings_and_Other_Secured_F4
Borrowings and Other Secured Financings (Other Secured Financings) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Other secured financings | $14,528 | [1] | $15,727 | [1] |
Original Maturities Greater than One Year | ' | ' | ||
Other secured financings | 10,163 | 14,431 | ||
Original Maturities One Year or Less | ' | ' | ||
Other secured financings | 3,930 | 641 | ||
Failed Sales | ' | ' | ||
Other secured financings | 435 | [2] | 655 | [2] |
Fair Value | ' | ' | ||
Other secured financings | $6,145 | $9,466 | ||
[1] | Amounts include $6,145 million and $9,466 million at fair value at September 30, 2013 and December 31, 2012, respectively. | |||
[2] | For more information on failed sales, see Note 7. |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Other Disclosures) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Derivatives | ' | ' | ' | ' | ' |
Discussion of interest rate fair value hedge effectiveness assessment and measurement | ' | ' | 'A hedging relationship is deemed effective if the fair values of the hedging instrument (derivative) and the hedged item (debt liability) change inversely within a range of 80% to 125%. | ' | ' |
Hedging Relationship Deemed Effective Range Lower Limit | 80.00% | ' | 80.00% | ' | ' |
Hedging Relationship Deemed Effective Range Upper Limit | 125.00% | ' | 125.00% | ' | ' |
Embedded derivatives, net fair value | $71 | ' | $71 | ' | $53 |
Embedded derivatives, notional amount | 2,146 | ' | 2,146 | ' | 2,178 |
Recognized gains (losses) related to changes in the fair value of bifurcated embedded derivatives | 13 | 12 | 13 | 6 | ' |
Cash collateral receivables | 204 | ' | 204 | ' | 158 |
Cash collateral payables | 5 | ' | 5 | ' | 34 |
Credit Risk Related Contingencies | ' | ' | ' | ' | ' |
Aggregate fair value of derivative contracts that contain credit-risk-related contingent features that are in a net liability position | 22,428 | ' | 22,428 | ' | ' |
Posted collateral | 19,474 | ' | 19,474 | ' | ' |
Amount of additional collateral or termination payments that could be called by counterparties under the terms of such agreements in the event of a downgrade of the Company's long-term credit rating, related to bilateral arrangements between the Company and other parties | 2,871 | ' | 2,871 | ' | ' |
Net Investment Hedges | ' | ' | ' | ' | ' |
Net Investment Hedges | ' | ' | ' | ' | ' |
Out-of-period pre-tax gain related to the reversal of amounts recorded in accumulated other comprehensive income due to the incorrect application of hedge accounting | ' | ' | ' | 109 | ' |
Baa1 Moody's/BBB+ S&P | ' | ' | ' | ' | ' |
Credit Risk Related Contingencies | ' | ' | ' | ' | ' |
Amount of additional collateral or termination payments that could be called by counterparties under the terms of such agreements in the event of a downgrade of the Company's long-term credit rating | 284 | ' | 284 | ' | ' |
Baa2 Moody's/BBB+ S&P | ' | ' | ' | ' | ' |
Credit Risk Related Contingencies | ' | ' | ' | ' | ' |
Amount of additional collateral or termination payments that could be called by counterparties under the terms of such agreements in the event of a downgrade of the Company's long-term credit rating | $2,994 | ' | $2,994 | ' | ' |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Components of Derivative Products) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Derivative Assets | ' | ' | ||
Gross amounts | $770,002,000,000 | [1] | $1,004,251,000,000 | [2] |
Amounts offset in the Condensed Consolidated Statements of Financial Condition | -734,564,000,000 | [3] | -968,054,000,000 | [3] |
Net amounts presented in the Condensed Consolidated Statements of Financial Condition | 35,438,000,000 | 36,197,000,000 | ||
Amounts not offset against financial instruments collateral | -8,399,000,000 | [4] | -7,691,000,000 | [4] |
Amounts not offset against other cash collateral | -79,000,000 | [4] | -232,000,000 | [4] |
Net exposure | 26,960,000,000 | 28,274,000,000 | ||
Derivative assets, which are either not subject to master netting agreements or collateral agreements, or are subject to such agreements but the entity has not determined the agreements to be legally enforceable | 10,500,000,000 | 7,200,000,000 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 750,897,000,000 | [1] | 978,773,000,000 | [2] |
Amounts offset in the Condensed Consolidated Statements of Financial Condition | -712,729,000,000 | [3] | -941,815,000,000 | [3] |
Net amounts presented in the Condensed Consolidated Statements of Financial Condition | 38,168,000,000 | 36,958,000,000 | ||
Amounts not offset against financial instruments collateral | -8,268,000,000 | [4] | -8,899,000,000 | [4] |
Amounts not offset against other cash collateral | -200,000,000 | [4] | -87,000,000 | [4] |
Net exposure | 29,700,000,000 | 27,972,000,000 | ||
Derivative liabilities, which are either not subject to master netting agreements or collateral agreements, or are subject to such agreements but the entity has not determined the agreements to be legally enforceable | 10,600,000,000 | 7,300,000,000 | ||
Bilateral OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 450,627,000,000 | [1] | 604,713,000,000 | [2] |
Amounts offset in the Condensed Consolidated Statements of Financial Condition | -422,897,000,000 | [3] | -573,844,000,000 | [3] |
Net amounts presented in the Condensed Consolidated Statements of Financial Condition | 27,730,000,000 | 30,869,000,000 | ||
Amounts not offset against financial instruments collateral | -8,399,000,000 | [4] | -7,691,000,000 | [4] |
Amounts not offset against other cash collateral | -79,000,000 | [4] | -232,000,000 | [4] |
Net exposure | 19,252,000,000 | 22,946,000,000 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 427,774,000,000 | [1] | 578,018,000,000 | [2] |
Amounts offset in the Condensed Consolidated Statements of Financial Condition | -400,382,000,000 | [3] | -547,285,000,000 | [3] |
Net amounts presented in the Condensed Consolidated Statements of Financial Condition | 27,392,000,000 | 30,733,000,000 | ||
Amounts not offset against financial instruments collateral | -5,873,000,000 | [4] | -7,871,000,000 | [4] |
Amounts not offset against other cash collateral | -151,000,000 | [4] | -64,000,000 | [4] |
Net exposure | 21,368,000,000 | 22,798,000,000 | ||
Cleared OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 284,888,000,000 | [1] | 375,233,000,000 | [2] |
Amounts offset in the Condensed Consolidated Statements of Financial Condition | -284,147,000,000 | [3] | -374,546,000,000 | [3] |
Net amounts presented in the Condensed Consolidated Statements of Financial Condition | 741,000,000 | 687,000,000 | ||
Amounts not offset against financial instruments collateral | 0 | [4] | 0 | [4] |
Amounts not offset against other cash collateral | 0 | [4] | 0 | [4] |
Net exposure | 741,000,000 | 687,000,000 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 285,023,000,000 | [1] | 374,960,000,000 | [2] |
Amounts offset in the Condensed Consolidated Statements of Financial Condition | -284,827,000,000 | [3] | -374,866,000,000 | [3] |
Net amounts presented in the Condensed Consolidated Statements of Financial Condition | 196,000,000 | 94,000,000 | ||
Amounts not offset against financial instruments collateral | 0 | [4] | 0 | [4] |
Amounts not offset against other cash collateral | -49,000,000 | [4] | -23,000,000 | [4] |
Net exposure | 147,000,000 | 71,000,000 | ||
Exchange Traded | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 34,487,000,000 | [1] | 24,305,000,000 | [2] |
Amounts offset in the Condensed Consolidated Statements of Financial Condition | -27,520,000,000 | [3] | -19,664,000,000 | [3] |
Net amounts presented in the Condensed Consolidated Statements of Financial Condition | 6,967,000,000 | 4,641,000,000 | ||
Amounts not offset against financial instruments collateral | 0 | [4] | 0 | [4] |
Amounts not offset against other cash collateral | 0 | [4] | 0 | [4] |
Net exposure | 6,967,000,000 | 4,641,000,000 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 38,100,000,000 | [1] | 25,795,000,000 | [2] |
Amounts offset in the Condensed Consolidated Statements of Financial Condition | -27,520,000,000 | [3] | -19,664,000,000 | [3] |
Net amounts presented in the Condensed Consolidated Statements of Financial Condition | 10,580,000,000 | 6,131,000,000 | ||
Amounts not offset against financial instruments collateral | -2,395,000,000 | [4] | -1,028,000,000 | [4] |
Amounts not offset against other cash collateral | 0 | [4] | 0 | [4] |
Net exposure | $8,185,000,000 | $5,103,000,000 | ||
[1] | Amounts include $10.5 billion of derivative assets and $10.6 billion of derivative liabilities which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. See also “Fair Value and Notional of Derivative Instruments†for additional disclosure about gross fair values and notionals for derivative instruments by risk type. | |||
[2] | Amounts include $7.2 billion of derivative assets and $7.3 billion of derivative liabilities which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. See also “Fair Value and Notional of Derivative Instruments†for additional disclosure about gross fair values and notionals for derivative instruments by risk type. | |||
[3] | Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default and where certain other criteria are met in accordance with applicable offsetting accounting guidance. | |||
[4] | Amounts relate to master netting agreements and collateral agreements which have been determined by the Company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities (Fair Value of OTC Derivatives in a Gain Position) (Details) (OTC, Gain Position, USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Credit Derivatives | ' | ' | ||
Years to maturity, less than 1 | $15,068 | [1] | $13,885 | [1] |
Years to maturity, 1 - 3 | 18,629 | [1] | 20,607 | [1] |
Years to maturity, 3 - 5 | 19,449 | [1] | 24,331 | [1] |
Years to maturity, over 5 | 54,376 | [1] | 69,244 | [1] |
Cross-maturity and cash collateral netting | -79,130 | [1],[2] | -96,743 | [1],[2] |
Net exposure post-cash collateral | 28,392 | [1] | 31,324 | [1] |
Net exposure post-collateral | 19,993 | [1] | 23,633 | [1] |
AAA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Years to maturity, less than 1 | 337 | [1],[3] | 353 | [1],[3] |
Years to maturity, 1 - 3 | 605 | [1],[3] | 551 | [1],[3] |
Years to maturity, 3 - 5 | 1,043 | [1],[3] | 1,299 | [1],[3] |
Years to maturity, over 5 | 4,305 | [1],[3] | 6,121 | [1],[3] |
Cross-maturity and cash collateral netting | -4,010 | [1],[2],[3] | -4,851 | [1],[2],[3] |
Net exposure post-cash collateral | 2,280 | [1],[3] | 3,473 | [1],[3] |
Net exposure post-collateral | 1,926 | [1],[3] | 3,088 | [1],[3] |
AA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Years to maturity, less than 1 | 2,283 | [1],[3] | 2,125 | [1],[3] |
Years to maturity, 1 - 3 | 2,015 | [1],[3] | 3,635 | [1],[3] |
Years to maturity, 3 - 5 | 2,655 | [1],[3] | 2,958 | [1],[3] |
Years to maturity, over 5 | 10,281 | [1],[3] | 10,270 | [1],[3] |
Cross-maturity and cash collateral netting | -11,877 | [1],[2],[3] | -12,761 | [1],[2],[3] |
Net exposure post-cash collateral | 5,357 | [1],[3] | 6,227 | [1],[3] |
Net exposure post-collateral | 3,533 | [1],[3] | 4,428 | [1],[3] |
A | ' | ' | ||
Credit Derivatives | ' | ' | ||
Years to maturity, less than 1 | 6,865 | [1],[3] | 6,643 | [1],[3] |
Years to maturity, 1 - 3 | 9,504 | [1],[3] | 9,596 | [1],[3] |
Years to maturity, 3 - 5 | 10,419 | [1],[3] | 14,228 | [1],[3] |
Years to maturity, over 5 | 21,414 | [1],[3] | 29,729 | [1],[3] |
Cross-maturity and cash collateral netting | -40,171 | [1],[2],[3] | -50,722 | [1],[2],[3] |
Net exposure post-cash collateral | 8,031 | [1],[3] | 9,474 | [1],[3] |
Net exposure post-collateral | 6,367 | [1],[3] | 7,638 | [1],[3] |
BBB | ' | ' | ||
Credit Derivatives | ' | ' | ||
Years to maturity, less than 1 | 2,886 | [1],[3] | 2,673 | [1],[3] |
Years to maturity, 1 - 3 | 3,498 | [1],[3] | 3,970 | [1],[3] |
Years to maturity, 3 - 5 | 3,660 | [1],[3] | 3,704 | [1],[3] |
Years to maturity, over 5 | 15,220 | [1],[3] | 18,586 | [1],[3] |
Cross-maturity and cash collateral netting | -17,861 | [1],[2],[3] | -21,713 | [1],[2],[3] |
Net exposure post-cash collateral | 7,403 | [1],[3] | 7,220 | [1],[3] |
Net exposure post-collateral | 5,625 | [1],[3] | 5,754 | [1],[3] |
Non-investment Grade | ' | ' | ||
Credit Derivatives | ' | ' | ||
Years to maturity, less than 1 | 2,697 | [1],[3] | 2,091 | [1],[3] |
Years to maturity, 1 - 3 | 3,007 | [1],[3] | 2,855 | [1],[3] |
Years to maturity, 3 - 5 | 1,672 | [1],[3] | 2,142 | [1],[3] |
Years to maturity, over 5 | 3,156 | [1],[3] | 4,538 | [1],[3] |
Cross-maturity and cash collateral netting | -5,211 | [1],[2],[3] | -6,696 | [1],[2],[3] |
Net exposure post-cash collateral | 5,321 | [1],[3] | 4,930 | [1],[3] |
Net exposure post-collateral | $2,542 | [1],[3] | $2,725 | [1],[3] |
[1] | Fair values shown represent the Company’s net exposure to counterparties related to the Company’s OTC derivative products. Amounts include centrally cleared OTC derivatives. The table does not include exchange-traded derivatives and the effect of any related hedges utilized by the Company. | |||
[2] | Amounts represent the netting of receivable balances with payable balances for the same counterparty across maturity categories. Receivable and payable balances with the same counterparty in the same maturity category are netted within such maturity category, where appropriate. Cash collateral received is netted on a counterparty basis, provided legal right of offset exists. | |||
[3] | Obligor credit ratings are determined by the Company’s Credit Risk Management Department. |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities (Fair Value of Derivative Instruments Designated and Not Designated as Accounting Hedges by Type of Derivative Contract on a Gross Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivative Assets | ' | ' | ||
Gross amounts | $770,002 | [1] | $1,004,251 | [2] |
Cash collateral netting | -56,617 | -69,248 | ||
Counterparty netting | -677,947 | -898,806 | ||
Net amounts | 35,438 | 36,197 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 750,897 | [1] | 978,773 | [2] |
Cash collateral netting | -34,782 | -43,009 | ||
Counterparty netting | -677,947 | -898,806 | ||
Net amounts | 38,168 | 36,958 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 25,291,467 | 23,695,434 | ||
Derivative liabilities | 25,157,843 | 24,358,323 | ||
Bilateral OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 450,627 | [1] | 604,713 | [2] |
Cash collateral netting | -53,748 | -68,024 | ||
Counterparty netting | -369,149 | -505,820 | ||
Net amounts | 27,730 | 30,869 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 427,774 | [1] | 578,018 | [2] |
Cash collateral netting | -31,233 | -41,465 | ||
Counterparty netting | -369,149 | -505,820 | ||
Net amounts | 27,392 | 30,733 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 10,358,120 | 12,101,243 | ||
Derivative liabilities | 10,099,984 | 11,701,148 | ||
Cleared OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 284,888 | [1] | 375,233 | [2] |
Cash collateral netting | -2,869 | -1,224 | ||
Counterparty netting | -281,278 | -373,322 | ||
Net amounts | 741 | 687 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 285,023 | [1] | 374,960 | [2] |
Cash collateral netting | -3,549 | -1,544 | ||
Counterparty netting | -281,278 | -373,322 | ||
Net amounts | 196 | 94 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 12,988,365 | 10,306,164 | ||
Derivative liabilities | 12,856,890 | 10,172,455 | ||
Exchange Traded | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 34,487 | [1] | 24,305 | [2] |
Cash collateral netting | 0 | 0 | ||
Counterparty netting | -27,520 | -19,664 | ||
Net amounts | 6,967 | 4,641 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 38,100 | [1] | 25,795 | [2] |
Cash collateral netting | 0 | 0 | ||
Counterparty netting | -27,520 | -19,664 | ||
Net amounts | 10,580 | 6,131 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 1,944,982 | 1,288,027 | ||
Derivative liabilities | 2,200,969 | 2,484,720 | ||
Designated as Accounting Hedges | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 6,090 | 8,714 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 1,209 | 487 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 75,717 | 85,406 | ||
Derivative liabilities | 24,890 | 19,816 | ||
Designated as Accounting Hedges | Bilateral OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 5,766 | 8,413 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 803 | 486 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 64,140 | 77,207 | ||
Derivative liabilities | 12,210 | 19,156 | ||
Designated as Accounting Hedges | Cleared OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 324 | 301 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 406 | 1 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 11,577 | 8,199 | ||
Derivative liabilities | 12,680 | 660 | ||
Designated as Accounting Hedges | Exchange Traded | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Designated as Accounting Hedges | Interest Rate Contracts | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 5,910 | 8,347 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 919 | 168 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 69,727 | 75,115 | ||
Derivative liabilities | 15,101 | 2,660 | ||
Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 5,586 | 8,046 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 514 | 167 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 58,287 | 66,916 | ||
Derivative liabilities | 2,647 | 2,000 | ||
Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 324 | 301 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 405 | 1 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 11,440 | 8,199 | ||
Derivative liabilities | 12,454 | 660 | ||
Designated as Accounting Hedges | Interest Rate Contracts | Exchange Traded | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Designated as Accounting Hedges | Foreign Exchange Contracts | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 180 | 367 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 290 | 319 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 5,990 | 10,291 | ||
Derivative liabilities | 9,789 | 17,156 | ||
Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 180 | 367 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 289 | 319 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 5,853 | 10,291 | ||
Derivative liabilities | 9,563 | 17,156 | ||
Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 1 | 0 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 137 | 0 | ||
Derivative liabilities | 226 | 0 | ||
Designated as Accounting Hedges | Foreign Exchange Contracts | Exchange Traded | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Not Designated as Accounting Hedges | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 763,912 | 995,537 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 749,688 | 978,286 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 25,215,750 | 23,610,028 | ||
Derivative liabilities | 25,132,953 | 24,338,507 | ||
Not Designated as Accounting Hedges | Bilateral OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 444,861 | 596,300 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 426,971 | 577,532 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 10,293,980 | 12,024,036 | ||
Derivative liabilities | 10,087,774 | 11,681,992 | ||
Not Designated as Accounting Hedges | Cleared OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 284,564 | 374,932 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 284,617 | 374,959 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 12,976,788 | 10,297,965 | ||
Derivative liabilities | 12,844,210 | 10,171,795 | ||
Not Designated as Accounting Hedges | Exchange Traded | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 34,487 | 24,305 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 38,100 | 25,795 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 1,944,982 | 1,288,027 | ||
Derivative liabilities | 2,200,969 | 2,484,720 | ||
Not Designated as Accounting Hedges | Interest Rate Contracts | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 584,788 | 815,454 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 564,974 | 793,936 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 20,523,258 | 18,901,892 | ||
Derivative liabilities | 20,544,759 | 19,667,167 | ||
Not Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 304,345 | 443,523 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 284,561 | 422,864 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 6,551,567 | 8,029,510 | ||
Derivative liabilities | 6,417,090 | 7,726,241 | ||
Not Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 280,067 | 371,789 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 280,055 | 370,856 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 12,716,148 | 10,096,252 | ||
Derivative liabilities | 12,594,699 | 9,945,979 | ||
Not Designated as Accounting Hedges | Interest Rate Contracts | Exchange Traded | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 376 | 142 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 358 | 216 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 1,255,543 | 776,130 | ||
Derivative liabilities | 1,532,970 | 1,994,947 | ||
Not Designated as Accounting Hedges | Credit Contracts | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 49,671 | 68,267 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 47,576 | 64,494 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 1,652,353 | 1,932,786 | ||
Derivative liabilities | 1,502,337 | 1,867,807 | ||
Not Designated as Accounting Hedges | Credit Contracts | Bilateral OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 45,312 | 65,168 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 43,093 | 60,420 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 1,397,432 | 1,734,907 | ||
Derivative liabilities | 1,257,814 | 1,645,464 | ||
Not Designated as Accounting Hedges | Credit Contracts | Cleared OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 4,359 | 3,099 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 4,483 | 4,074 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 254,921 | 197,879 | ||
Derivative liabilities | 244,523 | 222,343 | ||
Not Designated as Accounting Hedges | Credit Contracts | Exchange Traded | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Not Designated as Accounting Hedges | Foreign Exchange Contracts | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 55,962 | 52,427 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 56,551 | 56,094 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 1,858,961 | 1,841,186 | ||
Derivative liabilities | 1,922,627 | 1,886,073 | ||
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 55,800 | 52,349 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 56,463 | 56,062 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 1,844,721 | 1,831,385 | ||
Derivative liabilities | 1,914,342 | 1,878,597 | ||
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 138 | 44 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 79 | 29 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 5,719 | 3,834 | ||
Derivative liabilities | 4,988 | 3,473 | ||
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Exchange Traded | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 24 | 34 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 9 | 3 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 8,521 | 5,967 | ||
Derivative liabilities | 3,297 | 4,003 | ||
Not Designated as Accounting Hedges | Equity Contracts | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 56,108 | 38,600 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 63,233 | 41,870 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 832,767 | 587,700 | ||
Derivative liabilities | 842,927 | 587,198 | ||
Not Designated as Accounting Hedges | Equity Contracts | Bilateral OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 26,375 | 19,916 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 30,241 | 22,239 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 331,139 | 258,484 | ||
Derivative liabilities | 337,877 | 257,340 | ||
Not Designated as Accounting Hedges | Equity Contracts | Cleared OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Not Designated as Accounting Hedges | Equity Contracts | Exchange Traded | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 29,733 | 18,684 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 32,992 | 19,631 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 501,628 | 329,216 | ||
Derivative liabilities | 505,050 | 329,858 | ||
Not Designated as Accounting Hedges | Commodity Contracts | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 17,347 | 20,646 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 17,150 | 21,831 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 345,979 | 341,556 | ||
Derivative liabilities | 313,848 | 325,101 | ||
Not Designated as Accounting Hedges | Commodity Contracts | Bilateral OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 12,993 | 15,201 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 12,409 | 15,886 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 166,689 | 164,842 | ||
Derivative liabilities | 154,196 | 169,189 | ||
Not Designated as Accounting Hedges | Commodity Contracts | Cleared OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Not Designated as Accounting Hedges | Commodity Contracts | Exchange Traded | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 4,354 | 5,445 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 4,741 | 5,945 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 179,290 | 176,714 | ||
Derivative liabilities | 159,652 | 155,912 | ||
Not Designated as Accounting Hedges | Other Contracts | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 36 | 143 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 204 | 61 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 2,432 | 4,908 | ||
Derivative liabilities | 6,455 | 5,161 | ||
Not Designated as Accounting Hedges | Other Contracts | Bilateral OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 36 | 143 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 204 | 61 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 2,432 | 4,908 | ||
Derivative liabilities | 6,455 | 5,161 | ||
Not Designated as Accounting Hedges | Other Contracts | Cleared OTC | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Not Designated as Accounting Hedges | Other Contracts | Exchange Traded | ' | ' | ||
Derivative Assets | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivative Liabilities | ' | ' | ||
Gross amounts | 0 | 0 | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Not Designated as Accounting Hedges | Future Contracts | Long | ' | ' | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets | 411,000 | 368,000 | ||
Not Designated as Accounting Hedges | Future Contracts | Short | ' | ' | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative liabilities | 915,000 | 1,476,000 | ||
Not Designated as Accounting Hedges | Future Contracts | Customer and Other Receivables | ' | ' | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative assets, unsettled fair value | 951 | 1,073 | ||
Not Designated as Accounting Hedges | Future Contracts | Customer and Other Payables | ' | ' | ||
Derivatives, Notional Amount | ' | ' | ||
Derivative liabilities, unsettled fair value | $51 | $24 | ||
[1] | Amounts include $10.5 billion of derivative assets and $10.6 billion of derivative liabilities which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. See also “Fair Value and Notional of Derivative Instruments†for additional disclosure about gross fair values and notionals for derivative instruments by risk type. | |||
[2] | Amounts include $7.2 billion of derivative assets and $7.3 billion of derivative liabilities which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Company has not determined the agreements to be legally enforceable. See also “Fair Value and Notional of Derivative Instruments†for additional disclosure about gross fair values and notionals for derivative instruments by risk type. |
Derivative_Instruments_and_Hed6
Derivative Instruments and Hedging Activities (Gains or Losses on Derivative Instruments, Related Hedge Items and Hedge Ineffectiveness) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Derivatives | ' | ' | ' | ' | ||||
Gain (loss) recognized in income related to amounts excluded from hedge effectiveness testing | ($34) | ($65) | ($103) | ($193) | ||||
Interest Expense | ' | ' | ' | ' | ||||
Derivatives | ' | ' | ' | ' | ||||
Gains (Losses) on Fair Value Hedges Recognized | 281 | 89 | 953 | 467 | ||||
Interest Expense | Derivatives | ' | ' | ' | ' | ||||
Derivatives | ' | ' | ' | ' | ||||
Gains (Losses) on Fair Value Hedges Recognized | -302 | 72 | -3,421 | 504 | ||||
Interest Expense | Borrowings | ' | ' | ' | ' | ||||
Derivatives | ' | ' | ' | ' | ||||
Gains (Losses) on Fair Value Hedges Recognized | 583 | 17 | 4,374 | -37 | ||||
Net Investment Hedges | ' | ' | ' | ' | ||||
Derivatives | ' | ' | ' | ' | ||||
Gain (Losses) Recognized in OCI (effective portion) | -193 | -226 | 346 | -76 | [1] | |||
Gains reclassified from other comprehensive income into income | ' | ' | ' | 77 | ||||
Net Investment Hedges | Foreign Exchange Contracts | ' | ' | ' | ' | ||||
Derivatives | ' | ' | ' | ' | ||||
Gain (Losses) Recognized in OCI (effective portion) | -193 | [2] | -226 | [2] | 346 | [2] | -76 | [1],[2] |
Not Designated as Accounting Hedges | ' | ' | ' | ' | ||||
Derivatives | ' | ' | ' | ' | ||||
Gains (Losses) Recognized in Income | -1,487 | [3],[4] | -1,377 | [3],[4] | -1,303 | [3],[4] | 330 | [3],[4] |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | ' | ' | ' | ' | ||||
Derivatives | ' | ' | ' | ' | ||||
Gains (Losses) Recognized in Income | 594 | [3],[4] | -129 | [3],[4] | 2,775 | [3],[4] | 310 | [3],[4] |
Not Designated as Accounting Hedges | Interest Rate Contracts | ' | ' | ' | ' | ||||
Derivatives | ' | ' | ' | ' | ||||
Gains (Losses) Recognized in Income | -435 | [3],[4] | 227 | [3],[4] | -676 | [3],[4] | 977 | [3],[4] |
Not Designated as Accounting Hedges | Credit Contracts | ' | ' | ' | ' | ||||
Derivatives | ' | ' | ' | ' | ||||
Gains (Losses) Recognized in Income | -145 | [3],[4] | -525 | [3],[4] | 100 | [3],[4] | 96 | [3],[4] |
Not Designated as Accounting Hedges | Equity Contracts | ' | ' | ' | ' | ||||
Derivatives | ' | ' | ' | ' | ||||
Gains (Losses) Recognized in Income | -1,580 | [3],[4] | -800 | [3],[4] | -4,840 | [3],[4] | -1,229 | [3],[4] |
Not Designated as Accounting Hedges | Commodity Contracts | ' | ' | ' | ' | ||||
Derivatives | ' | ' | ' | ' | ||||
Gains (Losses) Recognized in Income | 104 | [3],[4] | -136 | [3],[4] | 1,407 | [3],[4] | 166 | [3],[4] |
Not Designated as Accounting Hedges | Other Contracts | ' | ' | ' | ' | ||||
Derivatives | ' | ' | ' | ' | ||||
Gains (Losses) Recognized in Income | ($25) | [3],[4] | ($14) | [3],[4] | ($69) | [3],[4] | $10 | [3],[4] |
[1] | A gain of $77 million, net of tax, related to net investment hedges was reclassified from other comprehensive income into income during the nine months ended September 30, 2012. The amount primarily related the reversal of amounts recorded in cumulative other comprehensive income due to the incorrect application of hedge accounting on certain derivative contracts (see above for further information). | |||||||
[2] | Losses of $34 million and $103 million were recognized in income related to amounts excluded from hedge effectiveness testing during the quarter and nine months ended September 30, 2013, respectively. Losses of $65 million and $193 million were recognized in income related to amounts excluded from hedge effectiveness testing during the quarter and nine months ended September 30, 2012, respectively. | |||||||
[3] | Gains (losses) on derivative contracts not designated as hedges are primarily included in Trading in the condensed consolidated statements of income. | |||||||
[4] | Gains (losses) associated with certain derivative contracts that have physically settled are excluded from the table above. Gains (losses) on these contracts are reflected with the associated cash instruments, which are also included in Trading in the condensed consolidated statements of income. |
Derivative_Instruments_and_Hed7
Derivative Instruments and Hedging Activities (Notional and Fair Value of Protection Sold and Purchased through Credit Default Swaps) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Protection Sold | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | $1,579,474 | $1,895,591 | ||
Credit risk derivative assets, fair value | -5,080 | [1],[2] | ' | |
Credit risk derivative liabilities, fair value | ' | 10,138 | [1],[2] | |
Protection Sold | Less than 1 Year | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 355,074 | 444,888 | ||
Protection Sold | 1 - 3 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 493,541 | 583,774 | ||
Protection Sold | 3 - 5 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 630,911 | 717,100 | ||
Protection Sold | Over 5 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 99,948 | 149,829 | ||
Credit Default Swaps | Protection Sold | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 1,577,786 | 1,893,192 | ||
Credit risk derivative assets, fair value | -4,909 | [1],[2] | ' | |
Credit risk derivative liabilities, fair value | ' | 10,883 | [1],[2] | |
Credit Default Swaps | Protection Sold | Less than 1 Year | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 354,698 | 444,092 | ||
Credit Default Swaps | Protection Sold | 1 - 3 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 493,531 | 583,649 | ||
Credit Default Swaps | Protection Sold | 3 - 5 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 630,774 | 716,945 | ||
Credit Default Swaps | Protection Sold | Over 5 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 98,783 | 148,506 | ||
Credit Default Swaps | Protection Purchased | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 1,576,904 | 1,907,401 | ||
Credit risk derivative assets, fair value | ' | -14,656 | ||
Credit risk derivative liabilities, fair value | 2,814 | ' | ||
Single Name Credit Default Swaps | Protection Sold | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 889,337 | 1,069,474 | ||
Credit risk derivative assets, fair value | -3,488 | [1],[2] | ' | |
Credit risk derivative liabilities, fair value | ' | 2,889 | [1],[2] | |
Single Name Credit Default Swaps | Protection Sold | AAA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 24,490 | 34,575 | ||
Credit risk derivative assets, fair value | -156 | [1],[2] | -204 | [1],[2] |
Single Name Credit Default Swaps | Protection Sold | AA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 64,344 | 69,261 | ||
Credit risk derivative assets, fair value | -707 | [1],[2] | -325 | [1],[2] |
Single Name Credit Default Swaps | Protection Sold | A | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 176,415 | 217,476 | ||
Credit risk derivative assets, fair value | -2,522 | [1],[2] | -2,740 | [1],[2] |
Single Name Credit Default Swaps | Protection Sold | BBB | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 396,322 | 447,234 | ||
Credit risk derivative assets, fair value | -1,904 | [1],[2] | -492 | [1],[2] |
Single Name Credit Default Swaps | Protection Sold | Non-investment Grade | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 227,766 | 300,928 | ||
Credit risk derivative liabilities, fair value | 1,801 | [1],[2] | 6,650 | [1],[2] |
Single Name Credit Default Swaps | Protection Sold | Less than 1 Year | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 256,376 | 296,392 | ||
Single Name Credit Default Swaps | Protection Sold | Less than 1 Year | AAA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 1,641 | 2,368 | ||
Single Name Credit Default Swaps | Protection Sold | Less than 1 Year | AA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 10,016 | 10,984 | ||
Single Name Credit Default Swaps | Protection Sold | Less than 1 Year | A | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 55,905 | 66,635 | ||
Single Name Credit Default Swaps | Protection Sold | Less than 1 Year | BBB | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 119,444 | 124,662 | ||
Single Name Credit Default Swaps | Protection Sold | Less than 1 Year | Non-investment Grade | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 69,370 | 91,743 | ||
Single Name Credit Default Swaps | Protection Sold | 1 - 3 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 287,987 | 340,169 | ||
Single Name Credit Default Swaps | Protection Sold | 1 - 3 Years | AAA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 7,641 | 6,592 | ||
Single Name Credit Default Swaps | Protection Sold | 1 - 3 Years | AA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 21,583 | 16,804 | ||
Single Name Credit Default Swaps | Protection Sold | 1 - 3 Years | A | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 57,731 | 72,796 | ||
Single Name Credit Default Swaps | Protection Sold | 1 - 3 Years | BBB | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 123,063 | 145,462 | ||
Single Name Credit Default Swaps | Protection Sold | 1 - 3 Years | Non-investment Grade | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 77,969 | 98,515 | ||
Single Name Credit Default Swaps | Protection Sold | 3 - 5 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 298,632 | 356,270 | ||
Single Name Credit Default Swaps | Protection Sold | 3 - 5 Years | AAA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 13,025 | 19,848 | ||
Single Name Credit Default Swaps | Protection Sold | 3 - 5 Years | AA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 27,395 | 34,280 | ||
Single Name Credit Default Swaps | Protection Sold | 3 - 5 Years | A | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 56,520 | 67,285 | ||
Single Name Credit Default Swaps | Protection Sold | 3 - 5 Years | BBB | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 129,910 | 142,714 | ||
Single Name Credit Default Swaps | Protection Sold | 3 - 5 Years | Non-investment Grade | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 71,782 | 92,143 | ||
Single Name Credit Default Swaps | Protection Sold | Over 5 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 46,342 | 76,643 | ||
Single Name Credit Default Swaps | Protection Sold | Over 5 Years | AAA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 2,183 | 5,767 | ||
Single Name Credit Default Swaps | Protection Sold | Over 5 Years | AA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 5,350 | 7,193 | ||
Single Name Credit Default Swaps | Protection Sold | Over 5 Years | A | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 6,259 | 10,760 | ||
Single Name Credit Default Swaps | Protection Sold | Over 5 Years | BBB | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 23,905 | 34,396 | ||
Single Name Credit Default Swaps | Protection Sold | Over 5 Years | Non-investment Grade | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 8,645 | 18,527 | ||
Single Name Credit Default Swaps | Protection Purchased | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 847,529 | 1,029,543 | ||
Credit risk derivative assets, fair value | ' | -2,456 | ||
Credit risk derivative liabilities, fair value | 3,121 | ' | ||
Total Index and Basket Credit Default Swaps | Protection Sold | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 688,449 | [3] | 823,718 | [3] |
Credit risk derivative liabilities, fair value | ' | 7,994 | [1],[2],[3] | |
Total Index and Basket Credit Default Swaps | Protection Sold | Less than 1 Year | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 98,322 | [3] | 147,700 | [3] |
Total Index and Basket Credit Default Swaps | Protection Sold | 1 - 3 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 205,544 | [3] | 243,480 | [3] |
Total Index and Basket Credit Default Swaps | Protection Sold | 3 - 5 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 332,142 | [3] | 360,675 | [3] |
Total Index and Basket Credit Default Swaps | Protection Sold | Over 5 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 52,441 | [3] | 71,863 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 516,283 | 551,630 | ||
Credit risk derivative assets, fair value | -1,421 | [1],[2],[3] | ' | |
Credit risk derivative liabilities, fair value | 205 | 5,664 | ||
Index and Basket Credit Default Swaps | Protection Sold | AAA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 93,320 | [3] | 103,686 | [3] |
Credit risk derivative assets, fair value | -1,319 | [1],[2],[3] | -1,377 | [1],[2],[3] |
Index and Basket Credit Default Swaps | Protection Sold | AA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 25,184 | [3] | 31,103 | [3] |
Credit risk derivative assets, fair value | -335 | [1],[2],[3] | -55 | [1],[2],[3] |
Index and Basket Credit Default Swaps | Protection Sold | A | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 13,698 | [3] | 13,672 | [3] |
Credit risk derivative assets, fair value | -43 | [1],[2],[3] | -155 | [1],[2],[3] |
Index and Basket Credit Default Swaps | Protection Sold | BBB | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 206,170 | [3] | 306,253 | [3] |
Credit risk derivative assets, fair value | -1,787 | [1],[2],[3] | -862 | [1],[2],[3] |
Index and Basket Credit Default Swaps | Protection Sold | Non-investment Grade | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 350,077 | [3] | 369,004 | [3] |
Credit risk derivative liabilities, fair value | 2,063 | [1],[2],[3] | 10,443 | [1],[2],[3] |
Index and Basket Credit Default Swaps | Protection Sold | Less than 1 Year | AAA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 16,504 | [3] | 18,652 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | Less than 1 Year | AA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 1,190 | [3] | 1,255 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | Less than 1 Year | A | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 1,452 | [3] | 2,684 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | Less than 1 Year | BBB | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 21,162 | [3] | 27,720 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | Less than 1 Year | Non-investment Grade | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 58,014 | [3] | 97,389 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | 1 - 3 Years | AAA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 34,984 | [3] | 36,005 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | 1 - 3 Years | AA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 8,460 | [3] | 9,479 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | 1 - 3 Years | A | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 3,609 | [3] | 5,423 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | 1 - 3 Years | BBB | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 64,741 | [3] | 105,870 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | 1 - 3 Years | Non-investment Grade | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 93,750 | [3] | 86,703 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | 3 - 5 Years | AAA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 39,470 | [3] | 45,789 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | 3 - 5 Years | AA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 9,657 | [3] | 12,026 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | 3 - 5 Years | A | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 8,614 | [3] | 5,440 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | 3 - 5 Years | BBB | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 112,188 | [3] | 143,562 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | 3 - 5 Years | Non-investment Grade | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 162,213 | [3] | 153,858 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | Over 5 Years | AAA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 2,362 | [3] | 3,240 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | Over 5 Years | AA | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 5,877 | [3] | 8,343 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | Over 5 Years | A | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 23 | [3] | 125 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | Over 5 Years | BBB | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 8,079 | [3] | 29,101 | [3] |
Index and Basket Credit Default Swaps | Protection Sold | Over 5 Years | Non-investment Grade | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 36,100 | [3] | 31,054 | [3] |
Index and Basket Credit Default Swaps | Protection Purchased | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 424,669 | 454,800 | ||
Credit risk derivative assets, fair value | -302 | -5,124 | ||
Tranched Index and Basket Credit Default Swaps | Protection Sold | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 172,166 | 272,088 | ||
Credit risk derivative assets, fair value | -1,626 | ' | ||
Credit risk derivative liabilities, fair value | ' | 2,330 | ||
Tranched Index and Basket Credit Default Swaps | Protection Purchased | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 304,706 | 423,058 | ||
Credit risk derivative assets, fair value | -5 | -7,076 | ||
Single Name, and Non-tranched Index and Basket Credit Default Swaps | Protection Sold | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 1,300,000 | 1,600,000 | ||
Single Name, and Non-tranched Index and Basket Credit Default Swaps | Protection Purchased | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 1,200,000 | 1,500,000 | ||
Other Contracts | Protection Sold | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 1,688 | [4],[5] | 2,399 | [4],[5] |
Credit risk derivative assets, fair value | -171 | [1],[2],[4],[5] | -745 | [1],[2],[4],[5] |
Other Contracts | Protection Sold | Less than 1 Year | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 376 | [4],[5] | 796 | [4],[5] |
Other Contracts | Protection Sold | 1 - 3 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 10 | [4],[5] | 125 | [4],[5] |
Other Contracts | Protection Sold | 3 - 5 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | 137 | [4],[5] | 155 | [4],[5] |
Other Contracts | Protection Sold | Over 5 Years | ' | ' | ||
Credit Derivatives | ' | ' | ||
Credit risk derivatives, notional amount | $1,165 | [4],[5] | $1,323 | [4],[5] |
[1] | Fair value amounts are shown on a gross basis prior to cash collateral or counterparty netting. | |||
[2] | Fair value amounts of certain credit default swaps where the Company sold protection have an asset carrying value because credit spreads of the underlying reference entity or entities tightened during the terms of the contracts. | |||
[3] | Credit ratings are calculated internally. | |||
[4] | Other credit contracts include CLNs, CDOs and credit default swaps that are considered hybrid instruments. | |||
[5] | Fair value amount shown represents the fair value of the hybrid instruments. |
Commitments_Guarantees_and_Con2
Commitments, Guarantees and Contingencies (Narrative) (Details) (USD $) | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||
In Millions, unless otherwise specified | Sep. 25, 2013 | Jun. 10, 2010 | Jun. 10, 2010 | Sep. 25, 2013 | Feb. 11, 2011 | Jul. 15, 2010 | Sep. 30, 2013 | Sep. 25, 2013 | Oct. 15, 2010 | Sep. 25, 2013 | Jul. 18, 2011 | Sep. 25, 2013 | Sep. 02, 2011 | Sep. 25, 2013 | Jul. 16, 2013 | Jun. 29, 2012 | Oct. 16, 2012 | Sep. 25, 2013 | Apr. 25, 2012 |
Federal Home Loan Bank of San Francisco v. Credit Suisse Securities (USA) LLC, et al. and Federal Home Loan Bank of San Francisco v. Deutsche Bank Securities Inc. et al. | Federal Home Loan Bank of San Francisco v. Credit Suisse Securities (USA) LLC, et al. | Federal Home Loan Bank of San Francisco v. Deutsche Bank Securities Inc. et al. | Cambridge Place Investment Management Inc. v. Morgan Stanley & Co., Inc. et al. | Cambridge Place Investment Management Inc. v. Morgan Stanley & Co., Inc. et al. | China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. | China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. | Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation et al. | Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation et al. | Western and Southern Life Insurance Company et al. v. Morgan Stanley Mortgage Capital Inc. et al. | Western and Southern Life Insurance Company et al. v. Morgan Stanley Mortgage Capital Inc. et al. | Federal Housing Finance Agency, as Conservator v. Morgan Stanley et al. | Federal Housing Finance Agency, as Conservator v. Morgan Stanley et al. | Metropolitan Life Insurance Company, et al. v. Morgan Stanley, et al. | Metropolitan Life Insurance Company, et al. v. Morgan Stanley, et al. | Metropolitan Life Insurance Company, et al. v. Morgan Stanley, et al. | The Prudential Insurance Company of America, et al. v. Morgan Stanley, et al. | The Prudential Insurance Company of America, et al. v. Morgan Stanley, et al. | The Prudential Insurance Company of America, et al. v. Morgan Stanley, et al. | |
claims | |||||||||||||||||||
Contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Damages sought | ' | ' | ' | ' | ' | $228 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimate of possible loss, maximum | ' | ' | ' | ' | ' | ' | 240 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit default swap asset | ' | ' | ' | ' | ' | 275 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss in period | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage pass through certificate backed by securitization trusts original amount | ' | 704 | 276 | ' | 263 | ' | ' | ' | 203 | ' | 153 | ' | 11,000 | ' | ' | 758 | ' | ' | 1,000 |
Mortgage pass through certificate backed by securitization trusts unpaid amount | 326 | ' | ' | 105 | ' | ' | ' | 98 | ' | 119 | ' | 2,800 | ' | 324 | ' | ' | ' | 663 | ' |
Mortgage pass through certificate incurred losses | 4 | ' | ' | 109 | ' | ' | ' | 1 | ' | 1 | ' | 68 | ' | 35 | ' | ' | ' | ' | ' |
Mortgage pass through certificate backed by securitization trusts amended amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $656 | ' | $80 | ' | ' |
Number of complaints | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' | ' | ' | ' |
Commitments_Guarantees_and_Con3
Commitments, Guarantees and Contingencies (Commitments) (Details) (USD $) | Sep. 30, 2013 | |
Commitment, Fiscal Year Maturity | ' | |
Less than 1 | $90,831,000,000 | |
1-3 years | 19,589,000,000 | |
3-5 years | 44,935,000,000 | |
Over 5 years | 3,515,000,000 | |
Total | 158,870,000,000 | |
Maximum commitment under reverse repurchase facility | 1,900,000,000 | |
Letters of Credit and Other Financial Guarantees Obtained to Satisfy Collateral Requirements | ' | |
Commitment, Fiscal Year Maturity | ' | |
Less than 1 | 682,000,000 | |
1-3 years | 7,000,000 | |
3-5 years | 0 | |
Over 5 years | 1,000,000 | |
Total | 690,000,000 | |
Investment Activities | ' | |
Commitment, Fiscal Year Maturity | ' | |
Less than 1 | 690,000,000 | |
1-3 years | 112,000,000 | |
3-5 years | 36,000,000 | |
Over 5 years | 257,000,000 | |
Total | 1,095,000,000 | |
Primary Lending Commitments - Investment Grade | ' | |
Commitment, Fiscal Year Maturity | ' | |
Less than 1 | 11,384,000,000 | [1] |
1-3 years | 13,934,000,000 | [1] |
3-5 years | 34,859,000,000 | [1] |
Over 5 years | 504,000,000 | [1] |
Total | 60,681,000,000 | [1] |
Unfunded commitments accounted for as held for investment | 44,900,000,000 | |
Unfunded commitments accounted for as held for sale | 5,900,000,000 | |
Primary Lending Commitments - Non-investment Grade | ' | |
Commitment, Fiscal Year Maturity | ' | |
Less than 1 | 2,684,000,000 | [1] |
1-3 years | 5,088,000,000 | [1] |
3-5 years | 9,505,000,000 | [1] |
Over 5 years | 1,836,000,000 | [1] |
Total | 19,113,000,000 | [1] |
Unfunded commitments accounted for as held for investment | 10,800,000,000 | |
Unfunded commitments accounted for as held for sale | 5,100,000,000 | |
Secondary Lending Commitments | ' | |
Commitment, Fiscal Year Maturity | ' | |
Less than 1 | 68,000,000 | [2] |
1-3 years | 32,000,000 | [2] |
3-5 years | 20,000,000 | [2] |
Over 5 years | 16,000,000 | [2] |
Total | 136,000,000 | [2] |
Commitments for Secured Lending Transactions | ' | |
Commitment, Fiscal Year Maturity | ' | |
Less than 1 | 964,000,000 | |
1-3 years | 0 | |
3-5 years | 0 | |
Over 5 years | 4,000,000 | |
Total | 968,000,000 | |
Forward Starting Reverse Repurchase Agreements and Securities Borrowing Agreements | ' | |
Commitment, Fiscal Year Maturity | ' | |
Less than 1 | 70,411,000,000 | [3],[4] |
1-3 years | 0 | [3],[4] |
3-5 years | 0 | [3],[4] |
Over 5 years | 0 | [3],[4] |
Total | 70,411,000,000 | [3],[4] |
Commitments due in the next three business days | 66,500,000,000 | |
Commercial and Residential Mortgage-related Commitments | ' | |
Commitment, Fiscal Year Maturity | ' | |
Less than 1 | 1,254,000,000 | |
1-3 years | 40,000,000 | |
3-5 years | 309,000,000 | |
Over 5 years | 818,000,000 | |
Total | 2,421,000,000 | |
Underwriting Commitments | ' | |
Commitment, Fiscal Year Maturity | ' | |
Less than 1 | 410,000,000 | |
1-3 years | 0 | |
3-5 years | 0 | |
Over 5 years | 0 | |
Total | 410,000,000 | |
Other Commitments | ' | |
Commitment, Fiscal Year Maturity | ' | |
Less than 1 | 2,284,000,000 | |
1-3 years | 376,000,000 | |
3-5 years | 206,000,000 | |
Over 5 years | 79,000,000 | |
Total | $2,945,000,000 | |
[1] | This amount includes $44.9 billion of investment grade and $10.8 billion of non-investment grade unfunded commitments accounted for as held for investment and $5.9 billion of investment grade and $5.1 billion of non-investment grade unfunded commitments accounted for as held for sale at September 30, 2013. The remainder of these lending commitments is carried at fair value. | |
[2] | These commitments are recorded at fair value within Trading assets and Trading liabilities in the condensed consolidated statements of financial condition (see Note 4). | |
[3] | The Company enters into forward starting reverse repurchase and securities borrowing agreements (agreements that have a trade date at or prior to September 30, 2013 and settle subsequent to period-end) that are primarily secured by collateral from U.S. government agency securities and other sovereign government obligations. These agreements primarily settle within three business days and of the total amount at September 30, 2013, $66.5 billion settled within three business days. | |
[4] | The Company also has a contingent obligation to provide financing to a clearinghouse through which it clears certain transactions. The financing is required only upon the default of a clearinghouse member. The financing takes the form of a reverse repurchase facility, with a maximum amount of approximately $1.9 billion. |
Commitments_Guarantees_and_Con4
Commitments, Guarantees and Contingencies (Obligations under Guarantee Arrangements) (Details) (USD $) | Sep. 30, 2013 | |
Guarantees issued by consolidated real estate fund sponsored by the Company | $13,000,000 | |
Accrued losses under these guarantees | 4,000,000 | |
Credit Derivative Contracts | ' | |
Maximum Potential Payout/Notional | 1,577,786,000,000 | [1] |
Carrying Amount (Asset)/Liability | -4,909,000,000 | [1] |
Collateral/Recourse | 0 | [1] |
Other Credit Contracts | ' | |
Maximum Potential Payout/Notional | 1,688,000,000 | |
Carrying Amount (Asset)/Liability | -171,000,000 | |
Collateral/Recourse | 0 | |
Non-credit Derivative Contracts | ' | |
Maximum Potential Payout/Notional | 3,109,490,000,000 | [1] |
Carrying Amount (Asset)/Liability | 61,134,000,000 | [1] |
Collateral/Recourse | 0 | [1] |
Standby Letters of Credit and Other Financial Guarantees Issued | ' | |
Maximum Potential Payout/Notional | 8,391,000,000 | [2],[3] |
Carrying Amount (Asset)/Liability | -210,000,000 | [2],[3] |
Collateral/Recourse | 7,409,000,000 | [2],[3] |
Market Value Guarantees | ' | |
Maximum Potential Payout/Notional | 716,000,000 | |
Carrying Amount (Asset)/Liability | 8,000,000 | |
Collateral/Recourse | 111,000,000 | |
Liquidity Facilities | ' | |
Maximum Potential Payout/Notional | 2,368,000,000 | |
Carrying Amount (Asset)/Liability | -4,000,000 | |
Collateral/Recourse | 3,143,000,000 | |
Whole Loan Sales Representations and Warranties | ' | |
Maximum Potential Payout/Notional | 23,803,000,000 | |
Carrying Amount (Asset)/Liability | 69,000,000 | |
Collateral/Recourse | 0 | |
Securitizations Representations and Warranties | ' | |
Maximum Potential Payout/Notional | 67,130,000,000 | |
Carrying Amount (Asset)/Liability | 90,000,000 | |
Collateral/Recourse | 0 | |
General Partner Guarantees | ' | |
Maximum Potential Payout/Notional | 427,000,000 | |
Carrying Amount (Asset)/Liability | 75,000,000 | |
Collateral/Recourse | 0 | |
Less than 1 Year | Credit Derivative Contracts | ' | |
Maximum Potential Payout/Notional | 354,698,000,000 | [1] |
Less than 1 Year | Other Credit Contracts | ' | |
Maximum Potential Payout/Notional | 376,000,000 | |
Less than 1 Year | Non-credit Derivative Contracts | ' | |
Maximum Potential Payout/Notional | 1,423,753,000,000 | [1] |
Less than 1 Year | Standby Letters of Credit and Other Financial Guarantees Issued | ' | |
Maximum Potential Payout/Notional | 1,258,000,000 | [2],[3] |
Less than 1 Year | Market Value Guarantees | ' | |
Maximum Potential Payout/Notional | 0 | |
Less than 1 Year | Liquidity Facilities | ' | |
Maximum Potential Payout/Notional | 2,220,000,000 | |
Less than 1 Year | Whole Loan Sales Representations and Warranties | ' | |
Maximum Potential Payout/Notional | 0 | |
Less than 1 Year | Securitizations Representations and Warranties | ' | |
Maximum Potential Payout/Notional | 0 | |
Less than 1 Year | General Partner Guarantees | ' | |
Maximum Potential Payout/Notional | 83,000,000 | |
1 - 3 Years | Credit Derivative Contracts | ' | |
Maximum Potential Payout/Notional | 493,531,000,000 | [1] |
1 - 3 Years | Other Credit Contracts | ' | |
Maximum Potential Payout/Notional | 10,000,000 | |
1 - 3 Years | Non-credit Derivative Contracts | ' | |
Maximum Potential Payout/Notional | 873,318,000,000 | [1] |
1 - 3 Years | Standby Letters of Credit and Other Financial Guarantees Issued | ' | |
Maximum Potential Payout/Notional | 687,000,000 | [2],[3] |
1 - 3 Years | Market Value Guarantees | ' | |
Maximum Potential Payout/Notional | 64,000,000 | |
1 - 3 Years | Liquidity Facilities | ' | |
Maximum Potential Payout/Notional | 148,000,000 | |
1 - 3 Years | Whole Loan Sales Representations and Warranties | ' | |
Maximum Potential Payout/Notional | 0 | |
1 - 3 Years | Securitizations Representations and Warranties | ' | |
Maximum Potential Payout/Notional | 0 | |
1 - 3 Years | General Partner Guarantees | ' | |
Maximum Potential Payout/Notional | 45,000,000 | |
3 - 5 Years | Credit Derivative Contracts | ' | |
Maximum Potential Payout/Notional | 630,774,000,000 | [1] |
3 - 5 Years | Other Credit Contracts | ' | |
Maximum Potential Payout/Notional | 137,000,000 | |
3 - 5 Years | Non-credit Derivative Contracts | ' | |
Maximum Potential Payout/Notional | 304,554,000,000 | [1] |
3 - 5 Years | Standby Letters of Credit and Other Financial Guarantees Issued | ' | |
Maximum Potential Payout/Notional | 1,309,000,000 | [2],[3] |
3 - 5 Years | Market Value Guarantees | ' | |
Maximum Potential Payout/Notional | 148,000,000 | |
3 - 5 Years | Liquidity Facilities | ' | |
Maximum Potential Payout/Notional | 0 | |
3 - 5 Years | Whole Loan Sales Representations and Warranties | ' | |
Maximum Potential Payout/Notional | 0 | |
3 - 5 Years | Securitizations Representations and Warranties | ' | |
Maximum Potential Payout/Notional | 0 | |
3 - 5 Years | General Partner Guarantees | ' | |
Maximum Potential Payout/Notional | 58,000,000 | |
Over 5 Years | Credit Derivative Contracts | ' | |
Maximum Potential Payout/Notional | 98,783,000,000 | [1] |
Over 5 Years | Other Credit Contracts | ' | |
Maximum Potential Payout/Notional | 1,165,000,000 | |
Over 5 Years | Non-credit Derivative Contracts | ' | |
Maximum Potential Payout/Notional | 507,865,000,000 | [1] |
Over 5 Years | Standby Letters of Credit and Other Financial Guarantees Issued | ' | |
Maximum Potential Payout/Notional | 5,137,000,000 | [2],[3] |
Over 5 Years | Market Value Guarantees | ' | |
Maximum Potential Payout/Notional | 504,000,000 | |
Over 5 Years | Liquidity Facilities | ' | |
Maximum Potential Payout/Notional | 0 | |
Over 5 Years | Whole Loan Sales Representations and Warranties | ' | |
Maximum Potential Payout/Notional | 23,803,000,000 | |
Over 5 Years | Securitizations Representations and Warranties | ' | |
Maximum Potential Payout/Notional | 67,130,000,000 | |
Over 5 Years | General Partner Guarantees | ' | |
Maximum Potential Payout/Notional | 241,000,000 | |
Primary and Secondary Lending Commitments | ' | |
Standby letters of credit | $2,100,000,000 | |
[1] | Carrying amounts of derivative contracts are shown on a gross basis prior to cash collateral or counterparty netting. For further information on derivative contracts, see Note 11. | |
[2] | Approximately $2.1 billion of standby letters of credit are also reflected in the “Commitments†table above in primary and secondary lending commitments. Standby letters of credit are recorded at fair value within Trading assets or Trading liabilities in the condensed consolidated statements of financial condition. | |
[3] | Amounts include guarantees issued by consolidated real estate funds sponsored by the Company of approximately $13 million. These guarantees relate to obligations of the fund’s investee entities, including guarantees related to capital expenditures and principal and interest debt payments. Accrued losses under these guarantees of approximately $4 million are reflected as a reduction of the carrying value of the related fund investments, which are reflected in Trading assets on the condensed consolidated statement of financial condition. |
Regulatory_Requirements_Narrat
Regulatory Requirements (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Regulatory Requirements | ' | ' |
Tier 1 capital to RWAs, being well-capitalized for regulatory purposes | 6.00% | ' |
Total capital to RWAs, being well-capitalized for regulatory purposes | 10.00% | ' |
Principal amount of debt issued | $25,000,000,000 | ' |
Tier 1 common capital, ratio | 12.60% | 14.60% |
Tier 1 leverage ratio, being well-capitalized for regulatory purposes | 5.00% | ' |
Minimum | ' | ' |
Regulatory Requirements | ' | ' |
Tier 1 common capital, ratio | 5.00% | ' |
MS&Co. | ' | ' |
Regulatory Requirements | ' | ' |
Net capital | 7,222,000,000 | 7,820,000,000 |
Amount of capital that exceeds the minimum required | 5,691,000,000 | 6,453,000,000 |
Net capital, minimum amount required to hold | 1,000,000,000 | ' |
Net capital, minimum amount required to hold in accordance with the market and credit risk standards | 500,000,000 | ' |
MS&Co. | Maximum | ' | ' |
Regulatory Requirements | ' | ' |
Amount by which if net capital falls below, the company is required to notify the SEC | $5,000,000,000 | ' |
Regulatory_Requirements_Capita
Regulatory Requirements (Capital Measures) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2013 |
Balance | ' | ' |
Tier 1 common capital, amount | $44,794 | $48,696 |
Tier 1 capital, amount | 54,360 | 58,903 |
Total capital, amount | 56,626 | 62,055 |
RWAs | 306,746 | 385,664 |
Adjusted average assets | 769,495 | 807,368 |
Tier 1 leverage capital, amount | $0 | $0 |
Ratio | ' | ' |
Tier 1 common capital, ratio | 14.60% | 12.60% |
Tier 1 capital to RWAs, ratio | 17.70% | 15.30% |
Total capital to RWAs, ratio | 18.50% | 16.10% |
Tier 1 leverage, ratio | 7.10% | 7.30% |
Increase (decrease) of Tier 1 common capital ratio | -0.50% | ' |
Increase (decrease) of Total capital ratio | -0.50% | ' |
Regulatory_Requirements_Signif
Regulatory Requirements (Significant U.S. Bank Operating Subsidiaries' Capital) (Details) (USD $) | 12 Months Ended | 9 Months Ended | |||||
Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | ||
MSBNA | MSBNA | MSPBNA | MSPBNA | ||||
Regulatory Requirements | ' | ' | ' | ' | ' | ' | |
Total capital, amount | $56,626,000,000 | $62,055,000,000 | $12,211,000,000 | $11,509,000,000 | [1] | $2,154,000,000 | $1,673,000,000 |
Tier 1 capital, amount | 54,360,000,000 | 58,903,000,000 | 10,549,000,000 | 9,918,000,000 | [1] | 2,148,000,000 | 1,665,000,000 |
Tier 1 leverage capital, amount | 0 | 0 | 10,549,000,000 | 9,918,000,000 | 2,148,000,000 | 1,665,000,000 | |
Total capital to RWAs, ratio | 18.50% | 16.10% | 16.70% | 16.70% | [1] | 29.60% | 28.80% |
Tier 1 capital to RWAs, ratio | 17.70% | 15.30% | 14.50% | 14.40% | [1] | 29.50% | 28.70% |
Tier 1 leverage, ratio | 7.10% | 7.30% | 10.80% | 13.30% | 10.60% | 10.60% | |
Increase (decrease) of Tier 1 common capital ratio | -0.50% | ' | ' | ' | ' | ' | |
Increase (decrease) of Total capital ratio | -0.50% | ' | ' | ' | ' | ' | |
Increase of RWAs | ' | ' | $2,000,000,000 | ' | ' | ' | |
[1] | MSBNA’s Tier 1 capital ratio and Total capital ratio at December 31, 2012 were each reduced by approximately 50 basis points due to an approximate $2.0 billion adjustment to notional value of derivatives contracts, which resulted in an increase to MSBNA’s RWAs by such amount. |
Redeemable_Noncontrolling_Inte2
Redeemable Noncontrolling Interests and Total Equity (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 27, 2013 | Sep. 16, 2012 | Sep. 30, 2013 | |
MSMS | MSMS | Wealth Management JV | Wealth Management JV | Wealth Management JV | Wealth Management JV | Real Estate Funds | ||||||
Citi | Citi | |||||||||||
Stock Repurchase Program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized repurchase amount of outstanding common stock | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased | ' | 123,000,000 | 123,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining amount under its current share repurchase authorization | ' | ' | 1,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
MUFG Stock Conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock redemption terms | ' | ' | 'The Series E Preferred Stock is redeemable at the Company’s option, (i) in whole or in part, from time to time, on any dividend payment date on or after October 15, 2023 or (ii) in whole but not in part at any time within 90 days following a regulatory capital treatment event (as defined therein), in each case at a redemption price of $25,000 per share (equivalent to $25 per Depositary Share). | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CIC Investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock par value per share | ' | $0.01 | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' |
Principal amount of debt issued | ' | 25,000,000,000 | 25,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonredeemable Noncontrolling Interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions to noncontrolling interests | ' | ' | ' | ' | ' | 292,000,000 | 151,000,000 | 38,000,000 | ' | ' | ' | 195,000,000 |
Reclass of nonredeemable noncontrolling interests to redeemable noncontrolling interests | ' | ' | ' | $4,296,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling owners' interest in nontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 49.00% | ' |
Redeemable_Noncontrolling_Inte3
Redeemable Noncontrolling Interests and Total Equity (Redeemable Noncontrolling Interests) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 17, 2012 | Sep. 30, 2013 | Jun. 28, 2013 |
Wealth Management JV | Wealth Management JV | Wealth Management JV | |||||
Redeemable Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | $4,309 | ' | ' | $4,309 | ' |
Net income applicable to redeemable noncontrolling interests | 0 | -8 | -222 | -8 | ' | 222 | ' |
Distributions | ' | ' | ' | ' | ' | -38 | ' |
Other | ' | ' | ' | ' | ' | -11 | ' |
Carrying value of additional stake in Wealth Management JV purchased from Citi | ' | ' | ' | -1,825 | -1,890 | -4,482 | -4,725 |
Ending balance | $0 | ' | $0 | ' | ' | $0 | ' |
Redeemable_Noncontrolling_Inte4
Redeemable Noncontrolling Interests and Total Equity (Preferred Stock) (Details) (USD $) | 0 Months Ended | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Preferred Stock | ' | ' |
Depositary Shares issued (in shares) | 34,500,000 | ' |
Depositary Shares issued | $862 | ' |
Preferred stock redemption terms | ' | 'The Series E Preferred Stock is redeemable at the Company’s option, (i) in whole or in part, from time to time, on any dividend payment date on or after October 15, 2023 or (ii) in whole but not in part at any time within 90 days following a regulatory capital treatment event (as defined therein), in each case at a redemption price of $25,000 per share (equivalent to $25 per Depositary Share). |
Series E Preferred Stock | ' | ' |
Preferred Stock | ' | ' |
Fraction of underlying stock that each Depositary Share represents | 0.001 | 0.001 |
Preferred stock par value (per share) | $0.01 | 0.01 |
Preferred stock redemption price (per share) | $25,000 | 25,000 |
Preferred stock redemption price per Depositary Share | $25 | 25 |
Redeemable_Noncontrolling_Inte5
Redeemable Noncontrolling Interests and Total Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Beginning balance | ($1,169) | ($516) |
Other comprehensive income (loss) before reclassifications | 154 | -488 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | -10 |
Net other comprehensive income (loss) during the period | 155 | -498 |
Ending balance | -1,014 | -1,014 |
Foreign Currency Translation Adjustments | ' | ' |
Beginning balance | -420 | -123 |
Other comprehensive income (loss) before reclassifications | 117 | -180 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Net other comprehensive income (loss) during the period | 117 | -180 |
Ending balance | -303 | -303 |
Net Change in Cash Flow Hedges | ' | ' |
Beginning balance | -3 | -5 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | 3 |
Net other comprehensive income (loss) during the period | 1 | 3 |
Ending balance | -2 | -2 |
Change in Net Unrealized Gains (Losses) on Securities Available for Sale | ' | ' |
Beginning balance | -218 | 151 |
Other comprehensive income (loss) before reclassifications | 37 | -310 |
Amounts reclassified from accumulated other comprehensive income (loss) | -4 | -26 |
Net other comprehensive income (loss) during the period | 33 | -336 |
Ending balance | -185 | -185 |
Pension, Postretirement and Other Related Adjustments | ' | ' |
Beginning balance | -528 | -539 |
Other comprehensive income (loss) before reclassifications | 0 | 2 |
Amounts reclassified from accumulated other comprehensive income (loss) | 4 | 13 |
Net other comprehensive income (loss) during the period | 4 | 15 |
Ending balance | ($524) | ($524) |
Earnings_Per_Common_Share_Calc
Earnings Per Common Share (Calculation of Basic and Diluted EPS) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Basic EPS: | ' | ' | ' | ' | ||||
Income (loss) from continuing operations | $1,000 | ($958) | $3,470 | ($97) | ||||
Net gain (loss) from discontinued operations | 18 | [1] | 2 | [1] | -30 | [1] | 25 | [1] |
Net income (loss) | 1,018 | -956 | 3,440 | -72 | ||||
Net income applicable to redeemable noncontrolling interests | 0 | 8 | 222 | 8 | ||||
Net income applicable to nonredeemable noncontrolling interests | 112 | 59 | 370 | 446 | ||||
Net income (loss) applicable to Morgan Stanley | 906 | -1,023 | 2,848 | -526 | ||||
Less: Wealth Management JV redemption value adjustment | 0 | 0 | -151 | 0 | ||||
Less: Allocation of (earnings) loss to participating RSUs: | ' | ' | ' | ' | ||||
From continuing operations | -2 | [2] | 0 | [2] | -6 | [2] | -1 | [2] |
Earnings (loss) applicable to Morgan Stanley common shareholders | 880 | -1,047 | 2,619 | -599 | ||||
Weighted average common shares outstanding | 1,909,350,788 | 1,889,300,631 | 1,906,097,564 | 1,883,813,883 | ||||
Earnings (loss) per basic common share: | ' | ' | ' | ' | ||||
Income (loss) from continuing operations | $0.45 | ($0.55) | $1.39 | ($0.32) | ||||
Net gain (loss) from discontinued operations | $0.01 | $0 | ($0.02) | $0 | ||||
Earnings (loss) per basic common share | $0.46 | ($0.55) | $1.37 | ($0.32) | ||||
Diluted EPS: | ' | ' | ' | ' | ||||
Earnings (loss) applicable to Morgan Stanley common shareholders | 880 | -1,047 | 2,619 | -599 | ||||
Weighted average common shares outstanding | 1,909,350,788 | 1,889,300,631 | 1,906,097,564 | 1,883,813,883 | ||||
Effect of dilutive securities: | ' | ' | ' | ' | ||||
Stock options and RSUs | 56,000,000 | [2] | 0 | [2] | 46,000,000 | [2] | 0 | [2] |
Weighted average common shares outstanding and common stock equivalents | 1,964,812,610 | 1,889,300,631 | 1,952,146,477 | 1,883,813,883 | ||||
Earnings (loss) per diluted common share: | ' | ' | ' | ' | ||||
Income (loss) from continuing operations | $0.44 | ($0.55) | $1.36 | ($0.32) | ||||
Net gain (loss) from discontinued operations | $0.01 | $0 | ($0.02) | $0 | ||||
Earnings (loss) per diluted common share | $0.45 | ($0.55) | $1.34 | ($0.32) | ||||
Series A Preferred Stock | ' | ' | ' | ' | ||||
Basic EPS: | ' | ' | ' | ' | ||||
Less: Preferred dividends | -11 | -11 | -33 | -33 | ||||
Series C Preferred Stock | ' | ' | ' | ' | ||||
Basic EPS: | ' | ' | ' | ' | ||||
Less: Preferred dividends | ($13) | ($13) | ($39) | ($39) | ||||
[1] | See Notes 1 and 21 for discussion of discontinued operations. | |||||||
[2] | RSUs that are considered participating securities participate in all of the earnings of the Company in the computation of basic EPS, and, therefore, such RSUs are not included as incremental shares in the diluted calculation. |
Earnings_Per_Common_Share_Anti
Earnings Per Common Share (Antidilutive Securities Excluded from the Computation of Diluted EPS) (Details) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Antidilutive securities outstanding | 36 | 131 | 36 | 131 |
RSUs and Performance-based Stock Units | ' | ' | ' | ' |
Antidilutive securities outstanding | 4 | 87 | 4 | 87 |
Stock Options | ' | ' | ' | ' |
Antidilutive securities outstanding | 32 | 44 | 32 | 44 |
Interest_Income_and_Interest_E2
Interest Income and Interest Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Interest income: | ' | ' | ' | ' | ||||
Trading assets | $494 | [1],[2] | $648 | [1],[2] | $1,742 | [1],[2] | $2,101 | [1],[2] |
Securities available for sale | 111 | [2] | 80 | [2] | 317 | [2] | 242 | [2] |
Loans | 299 | [2] | 161 | [2] | 790 | [2] | 418 | [2] |
Interest bearing deposits with banks | 38 | [2] | 44 | [2] | 89 | [2] | 95 | [2] |
Federal funds sold and securities purchased under agreements to resell and Securities borrowed | 50 | [2] | 64 | [2] | 213 | [2] | 223 | [2] |
Other | 319 | [2] | 382 | [2] | 980 | [2] | 1,165 | [2] |
Total Interest income | 1,311 | [2] | 1,379 | [2] | 4,131 | [2] | 4,244 | [2] |
Interest expense: | ' | ' | ' | ' | ||||
Deposits | 44 | [2] | 46 | [2] | 126 | [2] | 136 | [2] |
Commercial paper and other short-term borrowings | 4 | [2] | 11 | [2] | 18 | [2] | 35 | [2] |
Long-term debt | 957 | [2] | 1,256 | [2] | 2,834 | [2] | 3,597 | [2] |
Securities sold under agreements to repurchase and Securities loaned | 403 | [2] | 453 | [2] | 1,371 | [2] | 1,445 | [2] |
Other | -208 | [2] | -232 | [2] | -718 | [2] | -595 | [2] |
Total Interest expense | 1,200 | [2] | 1,534 | [2] | 3,631 | [2] | 4,618 | [2] |
Net interest | $111 | ($155) | $500 | ($374) | ||||
[1] | Interest expense on Trading liabilities is reported as a reduction to Interest income on Trading assets. | |||||||
[2] | Interest income and expense are recorded within the condensed consolidated statements of income depending on the nature of the instrument and related market conventions. When interest is included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. |
Employee_Benefit_Plans_Compone
Employee Benefit Plans (Components of Net Periodic Benefit Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension and Other Postretirement Plans | ' | ' | ' | ' |
Service cost, benefits earned during the period | $6 | $7 | $20 | $22 |
Interest cost on projected benefit obligation | 40 | 40 | 118 | 122 |
Expected return on plan assets | -28 | -27 | -85 | -82 |
Net amortization of prior service costs | -3 | -3 | -10 | -10 |
Net amortization of actuarial loss | 9 | 7 | 29 | 21 |
Net periodic benefit expense | $24 | $24 | $72 | $73 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of the Provision for (Benefit from) Income Taxes and the U.S. Federal Statutory Income Tax Rate) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 |
Tax planning Strategies to Optimize Foreign Tax Credit Utilization | Tax planning Strategies to Optimize Foreign Tax Credit Utilization | Retroactive Effective Date of American Taxpayer Relief Act of 2012 | Remeasurement of Reserves and Related Interest Based on New Information Regarding the Status of Certain Tax Authority Examinations | Overstatement of Tax Benefits, Out-of-Period | Overstatement of Tax Benefits, Out-of-Period | |||
Effective Income Tax Rate Reconciliation, Percent | ' | ' | ' | ' | ' | ' | ' | ' |
Effective income tax rate excluding effect of discrete tax expense (benefit) | 30.70% | 95.60% | ' | ' | ' | ' | ' | ' |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax reconciliation, repatriation of foreign earnings | ' | ' | ($73) | ($73) | ' | ' | $82 | $82 |
Income tax reconciliation, other adjustments | ' | ' | ' | ' | ($81) | ($61) | ' | ' |
Segment_and_Geographic_Informa2
Segment and Geographic Information (Selected Financial Information by Segments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total non-interest revenues | $7,821 | $5,435 | $24,093 | $19,520 | ' | ||||
Interest income | 1,311 | [1] | 1,379 | [1] | 4,131 | [1] | 4,244 | [1] | ' |
Interest expense | 1,200 | [1] | 1,534 | [1] | 3,631 | [1] | 4,618 | [1] | ' |
Net interest | 111 | -155 | 500 | -374 | ' | ||||
Net Revenues | 7,932 | [2] | 5,280 | [2] | 24,593 | [2] | 19,146 | [2] | ' |
Income (loss) from continuing operations before income taxes | 1,339 | -1,483 | 4,696 | -344 | ' | ||||
Provision for (benefit from) income taxes | 339 | -525 | 1,226 | -247 | ' | ||||
Income (loss) from continuing operations | 1,000 | -958 | 3,470 | -97 | ' | ||||
Discontinued operations: | ' | ' | ' | ' | ' | ||||
Gain (loss) from discontinued operations | 16 | [3],[4] | -11 | [3],[4] | -55 | [3],[4] | 68 | [3],[4] | ' |
Provision for (benefit from) income taxes | -2 | [3] | -13 | [3] | -25 | [3] | 43 | [3] | ' |
Net gain (loss) on discontinued operations | 18 | [3] | 2 | [3] | -30 | [3] | 25 | [3] | ' |
Net income (loss) | 1,018 | -956 | 3,440 | -72 | ' | ||||
Net income applicable to redeemable noncontrolling interests | 0 | 8 | 222 | 8 | ' | ||||
Net income applicable to nonredeemable noncontrolling interests | 112 | 59 | 370 | 446 | ' | ||||
Net income (loss) applicable to Morgan Stanley | 906 | -1,023 | 2,848 | -526 | ' | ||||
Segment Reporting Information, Additional Information | ' | ' | ' | ' | ' | ||||
Performance-based fee revenue at risk | 446 | ' | 446 | ' | 205 | ||||
Institutional Securities | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total non-interest revenues | 4,071 | 2,031 | [5] | 12,970 | 9,480 | [5] | ' | ||
Interest income | 897 | 1,017 | [5] | 2,950 | 3,158 | [5] | ' | ||
Interest expense | 1,282 | 1,567 | [5] | 3,799 | 4,690 | [5] | ' | ||
Net interest | -385 | -550 | [5] | -849 | -1,532 | [5] | ' | ||
Net Revenues | 3,686 | [2] | 1,481 | [2],[5] | 12,121 | [2] | 7,948 | [2],[5] | ' |
Income (loss) from continuing operations before income taxes | 371 | -1,928 | [5] | 2,129 | -1,769 | [5] | ' | ||
Provision for (benefit from) income taxes | 0 | -662 | [5] | 348 | -699 | [5] | ' | ||
Income (loss) from continuing operations | 371 | -1,266 | [5] | 1,781 | -1,070 | [5] | ' | ||
Discontinued operations: | ' | ' | ' | ' | ' | ||||
Gain (loss) from discontinued operations | -7 | [3] | -23 | [3],[5] | -64 | [3] | -41 | [3],[5] | ' |
Provision for (benefit from) income taxes | -5 | [3] | -8 | [3],[5] | -25 | [3] | 18 | [3],[5] | ' |
Net gain (loss) on discontinued operations | -2 | [3] | -15 | [3],[5] | -39 | [3] | -59 | [3],[5] | ' |
Net income (loss) | 369 | -1,281 | [5] | 1,742 | -1,129 | [5] | ' | ||
Net income applicable to redeemable noncontrolling interests | ' | 0 | [5] | 1 | 0 | [5] | ' | ||
Net income applicable to nonredeemable noncontrolling interests | 48 | 8 | [5] | 234 | 132 | [5] | ' | ||
Net income (loss) applicable to Morgan Stanley | 321 | -1,289 | [5] | 1,507 | -1,261 | [5] | ' | ||
Wealth Management | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total non-interest revenues | 2,988 | 2,823 | [5] | 9,130 | 8,530 | [5] | ' | ||
Interest income | 532 | 476 | [5] | 1,531 | 1,390 | [5] | ' | ||
Interest expense | 39 | 77 | [5] | 179 | 211 | [5] | ' | ||
Net interest | 493 | 399 | [5] | 1,352 | 1,179 | [5] | ' | ||
Net Revenues | 3,481 | [2] | 3,222 | [2],[5] | 10,482 | [2] | 9,709 | [2],[5] | ' |
Income (loss) from continuing operations before income taxes | 668 | 247 | [5] | 1,920 | 1,060 | [5] | ' | ||
Provision for (benefit from) income taxes | 238 | 93 | [5] | 687 | 364 | [5] | ' | ||
Income (loss) from continuing operations | 430 | 154 | [5] | 1,233 | 696 | [5] | ' | ||
Discontinued operations: | ' | ' | ' | ' | ' | ||||
Gain (loss) from discontinued operations | 0 | [3] | 0 | [3],[5] | -1 | [3] | 93 | [3],[5] | ' |
Provision for (benefit from) income taxes | 0 | [3] | -5 | [3],[5] | 0 | [3] | 26 | [3],[5] | ' |
Net gain (loss) on discontinued operations | 0 | [3] | 5 | [3],[5] | -1 | [3] | 67 | [3],[5] | ' |
Net income (loss) | 430 | 159 | [5] | 1,232 | 763 | [5] | ' | ||
Net income applicable to redeemable noncontrolling interests | ' | 8 | [5] | 221 | 8 | [5] | ' | ||
Net income applicable to nonredeemable noncontrolling interests | 0 | 1 | [5] | 0 | 176 | [5] | ' | ||
Net income (loss) applicable to Morgan Stanley | 430 | 150 | [5] | 1,011 | 579 | [5] | ' | ||
Investment Management | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total non-interest revenues | 828 | 635 | 2,151 | 1,641 | ' | ||||
Interest income | 2 | 2 | 7 | 7 | ' | ||||
Interest expense | 2 | 6 | 12 | 28 | ' | ||||
Net interest | 0 | -4 | -5 | -21 | ' | ||||
Net Revenues | 828 | [2] | 631 | [2] | 2,146 | [2] | 1,620 | [2] | ' |
Income (loss) from continuing operations before income taxes | 300 | 198 | 647 | 369 | ' | ||||
Provision for (benefit from) income taxes | 101 | 44 | 191 | 88 | ' | ||||
Income (loss) from continuing operations | 199 | 154 | 456 | 281 | ' | ||||
Discontinued operations: | ' | ' | ' | ' | ' | ||||
Gain (loss) from discontinued operations | 8 | [3] | 12 | [3] | 9 | [3] | 13 | [3] | ' |
Provision for (benefit from) income taxes | 0 | [3] | 0 | [3] | 0 | [3] | 0 | [3] | ' |
Net gain (loss) on discontinued operations | 8 | [3] | 12 | [3] | 9 | [3] | 13 | [3] | ' |
Net income (loss) | 207 | 166 | 465 | 294 | ' | ||||
Net income applicable to redeemable noncontrolling interests | ' | 0 | 0 | 0 | ' | ||||
Net income applicable to nonredeemable noncontrolling interests | 64 | 50 | 136 | 138 | ' | ||||
Net income (loss) applicable to Morgan Stanley | 143 | 116 | 329 | 156 | ' | ||||
Intersegment Eliminations | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total non-interest revenues | -66 | -54 | -158 | -131 | ' | ||||
Interest income | -120 | -116 | -357 | -311 | ' | ||||
Interest expense | -123 | -116 | -359 | -311 | ' | ||||
Net interest | 3 | 0 | 2 | 0 | ' | ||||
Net Revenues | -63 | [2] | -54 | [2] | -156 | [2] | -131 | [2] | ' |
Income (loss) from continuing operations before income taxes | 0 | 0 | 0 | -4 | ' | ||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 | ' | ||||
Income (loss) from continuing operations | 0 | 0 | 0 | -4 | ' | ||||
Discontinued operations: | ' | ' | ' | ' | ' | ||||
Gain (loss) from discontinued operations | 15 | [3] | 0 | [3] | 1 | [3] | 3 | [3] | ' |
Provision for (benefit from) income taxes | 3 | [3] | 0 | [3] | 0 | [3] | -1 | [3] | ' |
Net gain (loss) on discontinued operations | 12 | [3] | 0 | [3] | 1 | [3] | 4 | [3] | ' |
Net income (loss) | 12 | 0 | 1 | 0 | ' | ||||
Net income applicable to redeemable noncontrolling interests | ' | 0 | 0 | 0 | ' | ||||
Net income applicable to nonredeemable noncontrolling interests | 0 | 0 | 0 | 0 | ' | ||||
Net income (loss) applicable to Morgan Stanley | $12 | $0 | $1 | $0 | ' | ||||
[1] | Interest income and expense are recorded within the condensed consolidated statements of income depending on the nature of the instrument and related market conventions. When interest is included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. | ||||||||
[2] | In certain management fee arrangements, the Company is entitled to receive performance-based fees (also referred to as incentive fees) when the return on assets under management exceeds certain benchmark returns or other performance targets. In such arrangements, performance fee revenue is accrued (or reversed) quarterly based on measuring account fund performance to date versus the performance benchmark stated in the investment management agreement. The amount of performance-based fee revenue at risk of reversing if fund performance falls below stated investment management agreement benchmarks was approximately $446 million at September 30, 2013 and approximately $205 million at December 31, 2012 (see Note 2 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K). | ||||||||
[3] | See Notes 1 and 21 for discussion of discontinued operations. | ||||||||
[4] | Amounts included eliminations of intersegment activity. | ||||||||
[5] | On January 1, 2013, the International Wealth Management business was transferred from the Wealth Management business segment to the Equity division within the Institutional Securities business segment. Accordingly, prior period amounts have been recast to reflect the International Wealth Management business as part of the Institutional Securities business segment. |
Segment_and_Geographic_Informa3
Segment and Geographic Information (Assets by Segments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Segment Reporting Information | ' | ' | ||
Assets | $832,223 | [1] | $780,960 | [1] |
Institutional Securities | ' | ' | ||
Segment Reporting Information | ' | ' | ||
Assets | 675,676 | [1] | 648,049 | [1],[2] |
Wealth Management | ' | ' | ||
Segment Reporting Information | ' | ' | ||
Assets | 149,156 | [1] | 125,565 | [1],[2] |
Investment Management | ' | ' | ||
Segment Reporting Information | ' | ' | ||
Assets | $7,391 | [1] | $7,346 | [1] |
[1] | Corporate assets have been fully allocated to the Company’s business segments. | |||
[2] | Prior period amounts have been recast to reflect the transfer of the International Wealth Management business from the Wealth Management business segment to the Institutional Securities business segment. |
Segment_and_Geographic_Informa4
Segment and Geographic Information (Net Revenues and Total Assets by Geographic Area) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information | ' | ' | ' | ' | ||||
Net Revenues | $7,932 | [1] | $5,280 | [1] | $24,593 | [1] | $19,146 | [1] |
Americas | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ||||
Net Revenues | 5,665 | 4,744 | 17,635 | 14,632 | ||||
Europe, Middle East and Africa | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ||||
Net Revenues | 1,148 | 296 | 3,346 | 2,422 | ||||
Asia | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ||||
Net Revenues | $1,119 | $240 | $3,612 | $2,092 | ||||
[1] | In certain management fee arrangements, the Company is entitled to receive performance-based fees (also referred to as incentive fees) when the return on assets under management exceeds certain benchmark returns or other performance targets. In such arrangements, performance fee revenue is accrued (or reversed) quarterly based on measuring account fund performance to date versus the performance benchmark stated in the investment management agreement. The amount of performance-based fee revenue at risk of reversing if fund performance falls below stated investment management agreement benchmarks was approximately $446 million at September 30, 2013 and approximately $205 million at December 31, 2012 (see Note 2 to the consolidated financial statements for the year ended December 31, 2012 included in the Form 10-K). |
Equity_Method_Investments_Narr
Equity Method Investments (Narratives) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
MUMSS | MUMSS | MUMSS | MUMSS | MUMSS | MUMSS | MSMS | ||||||
Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investment | $4,756 | ' | $4,756 | ' | $4,682 | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from equity method investments | 148 | -3 | 339 | -24 | ' | ' | ' | 188 | 36 | 487 | 117 | ' |
Voting interest in joint venture | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | 40.00% | ' | 51.00% |
Voting interest held by noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | 60.00% | ' | 49.00% |
Dividends paid | ' | ' | 358 | 349 | ' | 287 | ' | ' | ' | ' | ' | ' |
Dividends received from equity method investment | ' | ' | ' | ' | ' | ' | $115 | ' | ' | ' | ' | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Discontinued Operations | ' | ' | ' | ' | ||||
Net revenues | $15 | [1] | $20 | [1] | ($4) | [1] | $274 | [1] |
Gain (loss) from discontinued operations | 16 | [1],[2] | -11 | [1],[2] | -55 | [1],[2] | 68 | [1],[2] |
Saxon | ' | ' | ' | ' | ||||
Discontinued Operations | ' | ' | ' | ' | ||||
Net revenues | 0 | [1] | -1 | [1] | 0 | [1] | 76 | [1] |
Gain (loss) from discontinued operations | -14 | [1] | -25 | [1] | -53 | [1] | -40 | [1] |
Quilter | ' | ' | ' | ' | ||||
Discontinued Operations | ' | ' | ' | ' | ||||
Net revenues | 0 | [1] | 0 | [1] | -1 | [1] | 163 | [1] |
Gain (loss) from discontinued operations | 0 | [1] | 0 | [1] | -1 | [1] | 97 | [1],[3] |
Pre-tax gain (loss) from disposal of discontinued operations | ' | ' | ' | 108 | ||||
Other | ' | ' | ' | ' | ||||
Discontinued Operations | ' | ' | ' | ' | ||||
Net revenues | 15 | [1],[4] | 21 | [1],[4] | -3 | [1],[4] | 35 | [1],[4] |
Gain (loss) from discontinued operations | $30 | [1],[4] | $14 | [1],[4] | ($1) | [1],[4] | $11 | [1],[4] |
[1] | Amounts included eliminations of intersegment activity. | |||||||
[2] | See Notes 1 and 21 for discussion of discontinued operations. | |||||||
[3] | Amount for the nine months ended September 30, 2012 included a pre-tax gain of approximately $108 million in connection with the sale of Quilter. | |||||||
[4] | Amounts included in Other are related to the sale of the Company’s retail asset management business, a principal investment and other. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||
In Billions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2013 | Oct. 31, 2013 |
Subsequent Event | Subsequent Event | |||||
Wealth Management JV | ||||||
Subsequent Event | ' | ' | ' | ' | ' | ' |
Dividends declared per common share | $0.05 | $0.05 | $0.15 | $0.15 | ' | ' |
Decrease in long-term borrowings | ' | ' | ' | ' | $1.30 | ' |
Wealth Management JV | ' | ' | ' | ' | ' | ' |
Transfer of deposits from joint venture partners | ' | ' | ' | ' | ' | $1.70 |