Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MS | ||
Entity Registrant Name | MORGAN STANLEY | ||
Entity Central Index Key | 895,421 | ||
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 Public Float | $ 72,777,054,630 | ||
Entity Common Stock, Shares Outstanding | 1,958,568,849 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Investment banking | $ 5,594 | $ 5,948 | $ 5,246 |
Trading | 10,114 | 9,377 | 9,359 |
Investments | 541 | 836 | 1,777 |
Commissions and fees | 4,554 | 4,713 | 4,629 |
Asset management, distribution and administration fees | 10,766 | 10,570 | 9,638 |
Other | 493 | 1,096 | 1,066 |
Total non-interest revenues | 32,062 | 32,540 | 31,715 |
Interest income | 5,835 | 5,413 | 5,209 |
Interest expense | 2,742 | 3,678 | 4,431 |
Net interest | 3,093 | 1,735 | 778 |
Net revenues | 35,155 | 34,275 | 32,493 |
Non-interest expenses: | |||
Compensation and benefits | 16,016 | 17,824 | 16,277 |
Occupancy and equipment | 1,382 | 1,433 | 1,499 |
Brokerage, clearing and exchange fees | 1,892 | 1,806 | 1,711 |
Information processing and communications | 1,767 | 1,635 | 1,768 |
Marketing and business development | 681 | 658 | 638 |
Professional services | 2,298 | 2,117 | 1,894 |
Other | 2,624 | 5,211 | 4,148 |
Total non-interest expenses | 26,660 | 30,684 | 27,935 |
Income from continuing operations before income taxes | 8,495 | 3,591 | 4,558 |
Provision for (benefit from) income taxes | 2,200 | (90) | 902 |
Income from continuing operations | 6,295 | 3,681 | 3,656 |
Discontinued operations: | |||
Income (loss) from discontinued operations before income taxes | (23) | (19) | (72) |
Provision for (benefit from) income taxes | (7) | (5) | (29) |
Income (loss) from discontinued operations | (16) | (14) | (43) |
Net income | 6,279 | 3,667 | 3,613 |
Net income applicable to redeemable noncontrolling interests | 0 | 0 | 222 |
Net income applicable to nonredeemable noncontrolling interests | 152 | 200 | 459 |
Net income applicable to Morgan Stanley | 6,127 | 3,467 | 2,932 |
Preferred stock dividends and other | 456 | 315 | 277 |
Earnings applicable to Morgan Stanley common shareholders | $ 5,671 | $ 3,152 | $ 2,655 |
Earnings (loss) per basic common share: | |||
Income from continuing operations | $ 2.98 | $ 1.65 | $ 1.42 |
Income (loss) from discontinued operations | (0.01) | (0.01) | (0.03) |
Earnings per basic common share | 2.97 | 1.64 | 1.39 |
Earnings per diluted common share: | |||
Income from continuing operations | 2.91 | 1.61 | 1.38 |
Income (loss) from discontinued operations | (0.01) | (0.01) | (0.02) |
Earnings per diluted common share | 2.9 | 1.6 | 1.36 |
Dividends declared per common share | $ 0.55 | $ 0.35 | $ 0.2 |
Average common shares outstanding: | |||
Basic | 1,909,116,527 | 1,923,805,397 | 1,905,823,882 |
Diluted | 1,952,815,453 | 1,970,535,560 | 1,956,519,738 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Condensed Consolidated Statements of Comprehensive Income | ||||
Net income | $ 6,279 | $ 3,667 | $ 3,613 | |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | [1] | (304) | (491) | (348) |
Change in net unrealized gains (losses) on available for sale securities | [2] | (246) | 209 | (433) |
Pension, postretirement and other | [3] | 138 | 33 | (1) |
Total other comprehensive income (loss) | (412) | (249) | (782) | |
Comprehensive income | 5,867 | 3,418 | 2,831 | |
Net income applicable to redeemable noncontrolling interests | 0 | 0 | 222 | |
Net income applicable to nonredeemable noncontrolling interests | 152 | 200 | 459 | |
Other comprehensive income (loss) applicable to nonredeemable noncontrolling interests | (4) | (94) | (205) | |
Comprehensive income applicable to Morgan Stanley | 5,719 | 3,312 | 2,355 | |
Parenthetical Disclosures | ||||
Foreign currency translation adjustments, provision for income taxes | 185 | 352 | 351 | |
Change in net unrealized gains (losses) on securities available for sale, provision for (benefit from) income taxes | (143) | 142 | (296) | |
Pension, postretirement and other adjustments, provision for (benefit from) income taxes | $ 73 | $ 20 | $ 11 | |
[1] | Amounts include provision for (benefit from) income taxes of $ 185 million, $ 352 million and $ 351 million for 2015 , 2014 and 2013 , respectively. | |||
[2] | Amounts include provision for (benefit from) income taxes of $ (143) million, $ 142 million and $ (296) million for 2015 , 2014 and 2013 , respectively. | |||
[3] | Amounts include provision for (benefit from) income taxes of $ 73 million, $ 20 million and $ 11 million for 2015 , 2014 and 2013 , respectively. |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks ($14 and $45 at December 31, 2015 and December 31, 2014, respectively, related to consolidated variable interest entities, generally not available to the Company) | $ 19,827 | $ 21,381 |
Interest bearing deposits with banks | 34,256 | 25,603 |
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements ($186 and $149 at December 31, 2015 and December 31, 2014, respectively, related to consolidated variable interest entities, generally not available to the Company) | 31,469 | 40,607 |
Trading assets, at fair value ($127,627 and $127,342 were pledged to various parties at December 31, 2015 and December 31, 2014, respectively) ($722 and $966 at December 31, 2015 and December 31, 2014, respectively, related to consolidated variable interest entities, generally not available to the Company) | 228,280 | 256,801 |
Investment securities (includes $66,759 and $69,216 at fair value at December 31, 2015 and December 31, 2014, respectively) | 71,983 | 69,316 |
Securities received as collateral, at fair value | 11,225 | 21,316 |
Securities purchased under agreements to resell (includes $806 and $1,113 at fair value at December 31, 2015 and December 31, 2014, respectively) | 87,657 | 83,288 |
Securities borrowed | 142,416 | 136,708 |
Customer and other receivables | 45,407 | 48,961 |
Loans | ||
Held for investment (net of allowances of $225 and $149 at December 31, 2015 and December 31, 2014, respectively) | 72,559 | 57,119 |
Held for sale | 13,200 | 9,458 |
Other investments ($328 and $467 at December 31, 2015 and December 31, 2014, respectively, related to consolidated variable interest entities, generally not available to the Company) | 4,202 | 4,355 |
Premises, equipment and software costs (net of accumulated depreciation of $7,140 and $6,219 at December 31, 2015 and December 31, 2014, respectively) ($183 and $191 at December 31, 2015 and December 31, 2014, respectively, related to consolidated variable interest entities, generally not available to the Company) | 6,373 | 6,108 |
Goodwill | 6,584 | 6,588 |
Intangible assets (net of accumulated amortization of $2,130 and $1,824 at December 31, 2015 and December 31, 2014, respectively) (includes $5 and $6 at fair value at December 31, 2015 and December 31, 2014, respectively) | 2,984 | 3,159 |
Other assets ($47 and $59 at December 31, 2015 and December 31, 2014, respectively, related to consolidated variable interest entities, generally not available to the Company) | 9,043 | 10,742 |
Total assets | 787,465 | 801,510 |
Liabilities | ||
Deposits (includes $125 at fair value at December 31, 2015) | 156,034 | 133,544 |
Short-term borrowings (includes $1,648 and $1,765 at fair value at December 31, 2015 and December 31, 2014, respectively) | 2,173 | 2,261 |
Trading liabilities, at fair value | 109,139 | 107,381 |
Obligation to return securities received as collateral, at fair value | 19,316 | 25,685 |
Securities sold under agreements to repurchase (includes $683 and $612 at fair value at December 31, 2015 and December 31, 2014, respectively) | 36,692 | 69,949 |
Securities loaned | 19,358 | 25,219 |
Other secured financings (includes $2,854 and $4,504 at fair value at December 31, 2015 and December 31, 2014, respectively) ($432 and $348 at December 31, 2015 and December 31, 2014, respectively, related to consolidated variable interest entities, generally non-recourse to the Company) | 9,464 | 12,085 |
Customer and other payables | 186,626 | 181,069 |
Other liabilities and accrued expenses ($4 and $72 at December 31, 2015 and December 31, 2014, respectively, related to consolidated variable interest entities, generally non-recourse to the Company) | 18,711 | 19,441 |
Long-term borrowings (includes $33,045 and $31,774 at fair value at December 31, 2015 and December 31, 2014, respectively) | 153,768 | 152,772 |
Total liabilities | $ 711,281 | $ 729,406 |
Commitments and contingent liabilities | ||
Morgan Stanley shareholders' equity: | ||
Preferred stock | $ 7,520 | $ 6,020 |
Common stock, $0.01 par value: Shares authorized: 3,500,000,000 at December 31, 2015 and December 31, 2014; Shares issued: 2,038,893,979 at December 31, 2015 and December 31, 2014; Shares outstanding: 1,920,024,027 and 1,950,980,142 at December 31, 2015 and December 31, 2014, respectively | 20 | 20 |
Additional Paid-in capital | 24,153 | 24,249 |
Retained earnings | 49,204 | 44,625 |
Employee stock trusts | 2,409 | 2,127 |
Accumulated other comprehensive loss | (1,656) | (1,248) |
Common stock held in treasury, at cost, $0.01 par value: Shares outstanding: 118,869,952 and 87,913,837 at December 31, 2015 and December 31, 2014, respectively | (4,059) | (2,766) |
Common stock issued to employee trusts | (2,409) | (2,127) |
Total Morgan Stanley shareholders' equity | 75,182 | 70,900 |
Nonredeemable noncontrolling interests | 1,002 | 1,204 |
Total equity | 76,184 | 72,104 |
Total liabilities and equity | $ 787,465 | $ 801,510 |
Consolidated Statements of Fin5
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and due from banks | $ 19,827 | $ 21,381 |
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 31,469 | 40,607 |
Trading assets pledged to various parties | 127,627 | 127,342 |
Trading assets, fair value | 228,280 | 256,801 |
Total AFS securities, fair value | 66,759 | 69,216 |
Securities purchased under agreement to resell, fair value | 806 | 1,113 |
Other investments | 4,202 | 4,355 |
Allowances, loans | 225 | 149 |
Premises, equipment and software costs, accumulated depreciation | 7,140 | 6,219 |
Premises, equipment and software costs | 6,373 | 6,108 |
Intangible assets, accumulated amortization | 2,130 | 1,824 |
Intangible assets, fair value | 5 | 6 |
Other assets | 9,043 | 10,742 |
Deposits, fair value | 125 | |
Commercial paper and other short-term borrowings, fair value | 1,648 | 1,765 |
Securities sold under agreement to repurchase, fair value | 683 | 612 |
Other secured financings, fair value | 2,854 | 4,504 |
Other secured financings | 9,464 | 12,085 |
Other liabilities and accrued expenses | 18,711 | 19,441 |
Long-term borrowings, fair value | $ 33,045 | $ 31,774 |
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 | 1,920,024,027 | 1,950,980,142 |
Common stock held in treasury, shares | 118,869,952 | 87,913,837 |
Consolidated VIEs | ||
Cash and due from banks | $ 14 | $ 45 |
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 186 | 149 |
Trading assets, fair value | 722 | 966 |
Other investments | 328 | 467 |
Premises, equipment and software costs | 183 | 191 |
Other assets | 47 | 59 |
Other secured financings | 432 | 348 |
Other liabilities and accrued expenses | $ 4 | $ 72 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Total Equity - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Employee Stock Trusts | Accumulated Other Comprehensive Income (Loss) | Common Stock Held in Treasury at Cost | Common Stock Issued to Employee Stock Trusts | Non-Redeemable Non-controlling Interests |
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 applicable to Morgan Stanley | 2,932 | 2,932 | ||||||||
Net income applicable to nonredeemable noncontrolling interests | 459 | 459 | ||||||||
Dividends | (521) | (521) | ||||||||
Shares issued under employee plans and related tax effects | 1,124 | 1,160 | (1,214) | (36) | 1,214 | |||||
Repurchases of common stock and employee tax withholdings | (691) | (691) | ||||||||
Net change in Accumulated other comprehensive income | (782) | (577) | (205) | |||||||
Issuance of preferred stock | 1,696 | 1,712 | (16) | |||||||
Wealth Management JV redemption value adjustment | (151) | (151) | ||||||||
Other net decreases | (464) | (464) | ||||||||
BALANCE AT at Dec. 31, 2013 | 69,030 | 3,220 | 20 | 24,570 | 42,172 | 1,718 | (1,093) | (2,968) | (1,718) | 3,109 |
Net income applicable to Morgan Stanley | 3,467 | 3,467 | ||||||||
Net income applicable to nonredeemable noncontrolling interests | 200 | 200 | ||||||||
Dividends | (1,014) | (1,014) | ||||||||
Shares issued under employee plans and related tax effects | 1,366 | (294) | 409 | 1,660 | (409) | |||||
Repurchases of common stock and employee tax withholdings | (1,458) | (1,458) | ||||||||
Net change in Accumulated other comprehensive income | (249) | (155) | (94) | |||||||
Issuance of preferred stock | 2,782 | 2,800 | (18) | |||||||
Deconsolidation of certain legal entities associated with a real estate fund | (1,606) | (1,606) | ||||||||
Wealth Management JV redemption value adjustment | 0 | |||||||||
Other net decreases | (414) | (9) | (405) | |||||||
BALANCE AT at Dec. 31, 2014 | 72,104 | 6,020 | 20 | 24,249 | 44,625 | 2,127 | (1,248) | (2,766) | (2,127) | 1,204 |
Net income applicable to Morgan Stanley | 6,127 | 6,127 | ||||||||
Net income applicable to nonredeemable noncontrolling interests | 152 | 152 | ||||||||
Dividends | (1,548) | (1,548) | ||||||||
Shares issued under employee plans and related tax effects | 1,401 | (79) | 282 | 1,480 | (282) | |||||
Repurchases of common stock and employee tax withholdings | (2,773) | (2,773) | ||||||||
Net change in Accumulated other comprehensive income | (412) | (408) | (4) | |||||||
Issuance of preferred stock | 1,493 | 1,500 | (7) | |||||||
Deconsolidation of certain legal entities associated with a real estate fund | (191) | (191) | ||||||||
Wealth Management JV redemption value adjustment | 0 | |||||||||
Other net decreases | (169) | (10) | (159) | |||||||
BALANCE AT at Dec. 31, 2015 | $ 76,184 | $ 7,520 | $ 20 | $ 24,153 | $ 49,204 | $ 2,409 | $ (1,656) | $ (4,059) | $ (2,409) | $ 1,002 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 6,279 | $ 3,667 | $ 3,613 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Deferred income taxes | 1,189 | (231) | (117) |
Income from equity method investments | (114) | (156) | (451) |
Compensation payable in common stock and options | 1,104 | 1,260 | 1,180 |
Depreciation and amortization | 1,433 | 1,161 | 1,511 |
Net gain on sale of available for sale securities | (84) | (40) | (45) |
Impairment charges | 69 | 111 | 198 |
Provision for credit losses on lending activities | 123 | 23 | 110 |
Other operating adjustments | 322 | (72) | 142 |
Changes in assets and liabilities: | |||
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 9,138 | (1,404) | (8,233) |
Trading assets, net of Trading liabilities | 29,471 | 20,619 | (23,598) |
Securities borrowed | (5,708) | (7,001) | (8,006) |
Securities loaned | (5,861) | (7,580) | (4,050) |
Customer and other receivables and other assets | (434) | 3,608 | 6,774 |
Customer and other payables and other liabilities | 4,373 | 27,971 | 26,697 |
Securities purchased under agreements to resell | (4,369) | 34,842 | 16,282 |
Securities sold under agreements to repurchase | (33,257) | (75,692) | 23,002 |
Net cash provided by operating activities | 3,674 | 1,086 | 35,009 |
Proceeds from (payments for): | |||
Premises, equipment and software net | (1,373) | (992) | (1,316) |
Business dispositions, net of cash disposed | 998 | 989 | 1,147 |
Loans | |||
Changes in loans, net | (15,816) | (20,116) | (10,057) |
Investment securities: | |||
Purchases | (47,291) | (32,623) | (30,557) |
Proceeds from sales | 37,926 | 12,980 | 11,425 |
Proceeds from paydowns and maturities | 5,663 | 4,651 | 4,757 |
Other investing activities | (102) | (213) | 140 |
Net cash used for investing activities | (19,995) | (35,324) | (24,461) |
Net proceeds from (payments for): | |||
Short-term borrowings | (88) | 119 | 4 |
Noncontrolling interests | (96) | (189) | (557) |
Other secured financings | (2,370) | (2,189) | (10,726) |
Deposits | 22,490 | 21,165 | 29,113 |
Proceeds from: | |||
Excess tax benefits associated with stock-based awards | 211 | 101 | 10 |
Derivatives financing activities | 512 | 855 | 1,003 |
Proceeds from preferred stock offering | 1,493 | 2,782 | 1,696 |
Issuance of long-term borrowings | 34,182 | 36,740 | 27,939 |
Payments for: | |||
Long-term borrowings | (27,289) | (33,103) | (38,742) |
Derivatives financing activities | (452) | (776) | (1,216) |
Repurchases of common stock and employee tax withholdings | (2,773) | (1,458) | (691) |
Purchase of additional stake in Wealth Management JV | 0 | 0 | (4,725) |
Cash dividends | (1,455) | (904) | (475) |
Net cash provided by (used for) financing activities | 24,365 | 23,143 | 2,633 |
Effect of exchange rate changes on cash and cash equivalents | (945) | (1,804) | (202) |
Net increase (decrease) in cash and cash equivalents | 7,099 | (12,899) | 12,979 |
Cash and cash equivalents, at beginning of period | 46,984 | 59,883 | 46,904 |
Cash and cash equivalents, at end of period | 54,083 | 46,984 | 59,883 |
Cash and cash equivalents include: | |||
Cash and due from banks | 19,827 | 21,381 | 16,602 |
Interest bearing deposits with banks | 34,256 | 25,603 | 43,281 |
Cash and cash equivalents, at end of period | 54,083 | 46,984 | 59,883 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash payments for interest | 2,672 | 3,575 | 4,793 |
Cash payments for income taxes, net of refunds | $ 677 | $ 886 | $ 930 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Introduction and Basis of Presentation | |
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. Morgan Stanley , 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. A description of the clients and principal products and servi ces of each of the Company’s business segments is as follows: Institutional Securities provides investment banking, sales and trading and other services to corporations, governments, financial institutions, and high-to-ultra high net worth clients. Inves tment banking services comprise capital raising and financial advisory services, including services relating to the underwriting of debt, equity and other securities as well as advice on mergers and acquisitions, restructurings, real estate and project fin ance. Sales and trading services incl ude sales, financing and market- making activities in equity securities and fixed income products, including foreign exchange and commodities, as well as prime brokerage services. Other services include corporate lending activities and credit products, investments and research. Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small-to-medium sized businesses and institutions covering brokerage and investment advisory services, market- making activities in fixed income securities, financial and wealth planning services, annuity and insurance products, credit and other lending products, banking and retirement plan services. Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets, to a diverse group of clients across institutional and intermediary channels. Institutional clients include defined benefit/defined cont ribution pensions, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are serviced through intermediaries, including affiliated and non-affiliated distri butors. Strategies and products comprise traditional asset management, including equity, fixed income, liquidity, alternatives and managed futures products, as well as merchant banking and real estate investing. Basis of Financial Information. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) , 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 legal and tax matters, allowance for credit losses and other matters that affect its consolidated financial statements and related disclosures. The Company believes that the estimates utilized in the preparation of its consolidated financial statements are prudent and reasonable. Actual results could differ materially from these estimates. Intercompany balances and transactions have been eliminated. Consolidation. The 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, in cluding certain variable interest entities (“VIE”) (see Note 13). 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 attribut able 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 consolidated statements of in come. The portion of shareholders’ equity of such subsidiaries that is attributable to noncontrolling interests for such subsidiaries is presented as Nonredeemable noncontrolling interests, a component of total equity, in the consolidated statements of fin ancial condition. For entities where (1) the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and (2) the equity holders bear the economic residual risks and re turns 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 it 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 re ceive benefits that could potentially be significant to the VIE, except for certain VIEs that are money market funds, are investment companies or are entities qualifying for accounting purposes as investment companies. Generally, the Company consolidates t hose 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, it generally applies the equity method of accounting with net gains and losses recorded within Other revenues (see Note 8). 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 3). Equity and partnership interests held by entities qualifying for accounting purposes as investment companies are carried at fa ir 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”). Consolidated Statements of Income Presentation. The Company, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients. In connection with the delivery of these various products and services, the Company manages its revenues and related expenses in the aggregate. As such, when assessing the performance of its businesses, primarily in the 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. Consolid ated Statements of Cash Flows Presentation. For purposes of the consolidated statements of cash flows, cash and cash equivalents consist of Cash and due from banks and Interest bearing deposits with banks, which include highly liquid investments with o riginal maturities of three months or less, that are held for investment purposes, and are readily convertible to known amounts of cash. During 2015 and 2014, the Company deconsolidated approximately $ 244 million and $ 1.6 billion, respectively, in net a ssets previously attributable to nonredeemable noncontrolling interests that were primarily related to or associated with real estate funds sponsored by the Company. The deconsolidations resulted in non-cash reduction of assets of $ 222 million in 2015 and $ 1.3 billion in 2014 . The Company’s significant non-cash activities in 2013 included assets and liabilities of approximately $ 3.6 billion and $ 3.1 billion, respectively, disposed of in connection with business dispositions. Dispositions. On November 1, 2015, the Company completed the sale of its global oil merchanting unit of the commodities division to Castleton Commodities International LLC. The loss on sale of approximately $ 71 million was recognized in Other revenues . On July 1, 2014, the Company completed the sale of its ownership stake in TransMontaigne Inc., a U.S.-based oil storage, marketing and transportation company, as well as related physical inventory and the assumption of its obligations under certain terminal storage contrac ts, to NGL Energy Partners LP. The gain on sale of $ 112 million is recorded in Other revenues. On March 27, 2014, the Company completed the sale of Canterm Canadian Terminals Inc., a public storage terminal operator for refined products with two distribution terminals in Canada. The gain on sale was approximately $ 45 million and is recorded in Other revenues . |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies. Revenue Recognition. Investment Banking. Underwriting revenues and advisory fees from mergers, acquisitions and restructuring transactions are recorded when services for the transactions are determined to be substantially completed, generally as set forth under the terms of the engagement. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same peri od as the related investment banking transaction revenues. Underwriting revenues are presented net of related expenses. Non-reimbursed expenses associated with advisory transactions are recorded within Non-interest expenses. Commissions and F ees. C ommission and fee revenues are recognized on trade date. Commission and fee revenues primarily arise from agency transactions in listed and over-the-counter (“OTC”) equity securities; services related to sales and trading activities; and sales of mutual fu nds, futures, insurance products and options. Asset Management, Distribution and Administration Fees. Asset management, distribution and administration fees are recognized over the relevant contract period. Sales commissions paid by the Company in connection with the sale of certain classes of shares of its open-end mutual fund products are accounted for as deferred commission assets. The Company periodically tests the deferred commission assets for recoverability based on cash flows expected to be received in future periods. In certain management fee arrangements, the Company is entitled to receive performance-based fees (also referred to as incentive fees and includes carried interest) when the return on assets under management exceeds certain benc hmark returns or other performance targets. In such arrangements, performance fee revenues are accrued (or reversed) quarterly based on measuring account/fund performance to date versus the performance benchmark stated in the investment management agreemen t. Performance-based fees are recorded within Investments or Asset management, distribution and administration fees depending on the nature of the arrangement. The Company’s portion of the unrealized cumulative amount of performance-based fee revenue (for which the Company is not obligated to pay compensation) at risk of reversing if fund performance falls below stated investment management agreement benchmarks was approximately $ 363 million and $ 634 million at December 31, 2015 and December 31, 2014, respe ctively. See Note 12 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received. Trading and Investments. See “Fair Value of Financial Instruments” below for Trading and Investments revenue recognition discussions. Fair Value of Financial Instruments. Instruments within Trading assets and Trading liabilities are measured at fair value, either in accordance with accounting guidance or through the fair value option election (discussed below). These financial instruments primarily represent the Company’s trading and investment positions and include both cash and derivative products. In addition, debt securities classified as available for sale (“AFS”) securities and Securities received as collateral and Obligation to return securities received as collateral are measured at fair value. Gains and losses on instruments carried at fair value are reflec ted in Trading revenues, Investments revenues or Investment banking revenues in the consolidated statements of income, except for AFS securities (see “ Investment Securities —Available for Sale and Held to Maturity ” section herein and Note 5) and derivat ives accounted for as hedges (see “Hedge Accounting” section herein and Note 4 ). Interest income and interest expense are recorded within the consolidated statements of income depending on the nature of the instrument and related market conventions. When interest is included as a component of the instruments’ fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. Dividend income is recorded in Trading reve nues or Investments revenues depending on the business activity. The fair value of OTC financial instruments, including derivative contracts related to financial instruments and commodities, is presented in the accompanying consolidated statements of finan cial condition on a net-by-counterparty basis, when appropriate. Additionally, the Company nets the fair value of cash collateral paid or received against the fair value amounts recognized for net derivative positions executed with the same counterparty un der the same master netting agreement. Fair Value Option. The fair value option permits the irrevocable fair value option election at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for tha t instrument. The Company applies the fair value option for eligible instruments, including certain Securities purchased under agreements to resell, loans and lending commitments, equity method investments, Deposits (struct ured certificate of deposits), S h ort-term borrowings ( primarily structured notes), Securities sold under agreements to repurchase, Other secured financings and Long-term borrowings (primarily structured notes). Fair Value Measurement—Definition and Hierarchy. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability ( i.e. , the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation ap proaches and establishes a hierarchy for inputs used in measuring fair value that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable i nputs are inputs that market participants would use in pricing the asset or liability that were developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect assumptions the Company believes ot her market participants would use in pricing the asset or liability that are developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: Level 1. Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted pr ices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2. Valuations based on one or more quoted prices in markets that are not active or for which all sign ificant inputs are observable, either directly or indirectly. Level 3. Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from product to product a nd is affected by a wide variety of factors, including, for example, the type of product, whether the product is new and not yet established in the marketplace, the liquidity of markets and other characteristics particular to the product. To the extent tha t valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy. The Company considers prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2 or Level 2 to Level 3 of the fair value hierarchy (see Note 3). In certain cases, the inputs used to measure fa ir value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input t hat is significant to the fair value measurement in its entirety. For assets and liabilities that are transfe rred between Levels in the fair value hierarchy during the period, fair values are ascribed as if the assets or liabilities had been transferred as of the beginning of the period. Valuation Techniques. Many cash instruments and OTC derivative contracts have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that a party is willing to pay for an asset. Ask prices represent the lowest price that a party is willing to accept for an asset. The Company carries positions at the point within the bid-ask range that meet its best estimate of fair value. For offsetting positions in the same financial instr ument, the same price within the bid-ask spread is used to measure both the long and short positions. Fair value for many cash instruments and OTC derivative contracts is derived using pricing models. Pricing models take into account the contract terms as well as multiple inputs, including, where applicable, commodity prices, equity prices, interest rate yield curves, credit curves, correlation, creditworthiness of the counterparty, creditworthiness of the Company, option volatility and currency rates. Where appropriate, valuation adjustments are made to account for various factors such as liquidity risk (bid-ask adjustments), credit quality, model uncertainty and concentration risk. Adjustments for liquidity risk adjust model-derived mid-market levels of Level 2 and Level 3 financial instruments for the bid-mid or mid-ask spread required to properly reflect the exit price of a risk position. Bid-mid and mid-ask spreads are marked to levels observed in trade activity, broker quotes or other external thir d-party data. Where these spreads are unobservable for the particular position in question, spreads are derived from observable levels of similar positions. The Company applies credit-related valuation adjustments to its short-term and long-term borrowin gs (primarily structured notes) for which the fair value option was elected and to OTC derivatives. The Company considers the impact of changes in its own credit spreads based upon observations of the secondary bond market spreads when measuring the fair value for short-term and long-term borrowings. For OTC derivatives, the impact of changes in both the Company’s and the counterparty’s credit rating is considered when measuring fair value. In determining the expected exposure, the Company simulates the di stribution of the future exposure to a counterparty, then applies market-based default probabilities to the future exposure, leveraging external third-party credit default swap (“CDS”) spread data. Where CDS spread data are unavailable for a specific count erparty, bond market spreads, CDS spread data based on the counterparty’s credit rating or CDS spread data that reference a comparable counterparty may be utilized. The Company also considers collateral held and legally enforceable master netting agreement s that mitigate its exposure to each counterparty. Adjustments for model uncertainty are taken for positions whose underlying models are reliant on significant inputs that are neither directly nor indirectly observable, hence requiring reliance on establ ished theoretical concepts in their derivation. These adjustments are derived by making assessments of the possible degree of variability using statistical approaches and market-based information where possible. The Company generally subjects all valuation s and models to a review process initially and on a periodic basis thereafter. The Company may apply a concentration adjustment to certain of its OTC derivatives portfolios to reflect the additional cost of closing out a particularly large risk exposure. Where possible, these adjustments are based on observable market information, but in many instances, significant judgment is required to estimate the costs of closing out concentrated risk exposures due to the lack of liquidity in the marketplace. During 2014, the Company incorporated funding valuation adjustments (“FVA”) into the fair value measurements of OTC uncollateralized or parti ally collateralized derivatives and in collateralized derivatives where the terms of the agreement do not permit th e reuse of the collateral received. The Company’s implementation of FVA reflects the inclusion of FVA in the pricing and valuations by the majority of mark et participants involved in its principal exit market for these instruments. In general, FVA reflects a market funding risk premium inherent in the noted derivative instruments. The methodology for measuring FVA leverages the Company’s existing credit-related valuation adjustment calculation methodologies, which apply to both assets and liabilities. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, assumptions are set to reflect those that the Company believ es market participants would use in pricing the asset or liability at the measurement date. Where the Company manages a group of financial assets and financial liabilities on the basis of its net exposure to either market risks or credit risk, the Company measures the fair value of that group of financial instruments consistently with how market participants would price the net risk exposure at the measurement date. See Note 3 for a description of valuation techniques applied to the major categories of financial instruments measured at fair value. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis. Certain of the Company’s assets and liabilities are measured at fair value on a non-recurring basis. The Company incurs losses or gains for any adjustments of these assets to fair value. For assets and liabilities measured at fair value on a non-recurring basis, fair value is determined by using various valuation approaches. The same hierarchy for inputs as described above, which maximizes the use of observable inputs and minimizes the use of unobservable inputs by generally requiring that the observable inputs be used when available, is used in measuring fair value for these items. Valuation Process . The Valuation Review G roup (“VRG”) within the Company’s Financial Control Group (“FCG”) is responsible for the Company’s fair value valuation policies, processes and procedures. VRG is independent of the business units and reports to the Chief Financial Officer (“CFO”), who has final authority over the valuation of the Company’s financial instruments. VRG implements valuation control processes to validate the fair value of the Company’s financial instruments measured at fair value, including those derived from pricing models. Th ese control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to ensure that the valuati on approach utilized is appropriate and consistently applied and that the assumptions are reasonable. The Company’s control processes apply to financial instruments categorized in Level 1, Level 2 or Level 3 of the fair value hierarchy, unless otherwise noted. These control processes include: Model Review. VRG, in conjunction with the Market Risk Department (“MRD”) and, where appropriate, the Credit Risk Management Department, both of which report to the Chief Risk Officer, independently review val uation models’ theoretical soundness, the appropriateness of the valuation methodology and calibration techniques developed by the business units using observable inputs. Where inputs are not observable, VRG reviews the appropriateness of the proposed valu ation methodology to ensure it is consistent with how a market participant would arrive at the unobservable input. The valuation methodologies utilized in the absence of observable inputs may include extrapolation techniques and the use of comparable obser vable inputs. As part of the review, VRG develops a methodology to independently verify the fair value generated by the business unit’s valuation models. All of the Company’s valuation models are subject to an independent annual review. Independent Price Verification. The business units are responsible for determining the fair value of financial instruments using approved valuation models and valuation methodologies. Generally on a monthly basis, VRG independently validates the fair values of fina ncial instruments determined using valuation models by determining the appropriateness of the inputs used by the business units and by testing compliance with the documented valuation methodologies approved in the model review process described above. V RG uses recently executed transactions, other observable market data such as exchange data, broker-dealer quotes, third-party pricing vendors and aggregation services for validating the fair value of financial instruments generated using valuation models. VRG assesses the external sources and their valuation methodologies to determine if the external providers meet the minimum standards expected of a third-party pricing source. Pricing data provided by approved external sources are evaluated using a number of approaches; for example, by corroborating the external sources’ prices to executed trades, by analyzing the methodology and assumptions used by the external source to generate a price and/or by evaluating how active the third-party pricing source (or or iginating sources used by the third-party pricing source) is in the market. Based on this analysis, VRG generates a ranking of the observable market data to ensure that the highest-ranked market data source is used to validate the business unit’s fair valu e of financial instruments. For financial instruments categorized within Level 3 of the fair value hierarchy, VRG reviews the business unit’s valuation techniques to ensure these are consistent with market participant assumptions. The results of this independent price verification and any adjustments made by VRG to the fair value generated by the business units are presented to management of the Company’s three business segments ( i.e. , Institutional Securities, Wealth Management and Investment Managem ent), the CFO and the Chief Risk Officer on a regular basis. Review of New Level 3 Transactions. VRG reviews the models and valuation methodology used to price all new material Level 3 transactions, and both FCG and MRD management must approve the fa ir value of the trade that is initially recognized. For further information on financial assets and liabilities that are measured at fair value on a recurring and non-recurring basis, see Note 3. Offsetting of Derivative Instruments. 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, to net a cou nterparty's rights and obligations under the agreement and to liquidate and set off 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 insolvenc y regime may not support the enforceability of the master netting agreement or collateral 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 (see Note 4). The Company’s policy is generally to receive securities and cash posted as collateral (with rights of rehypothecation ), irrespective of the enforceability dete rmination 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 it to take control of such collateral in the event o f 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. For information related to offsetting of derivatives and certain col lateral transactions, see Notes 4 and 6 , respectively. Hedge Accounting. The Company applies hedge accounting using various derivative financial instruments for the following types of hedges: hedges of changes in fair value of asse ts and liabilities due to the risk 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) . These financial instr uments are included within Trading assets—Derivative and other contracts or Trading liabilities—Derivative and other contracts in the consolidated statements of financial condition. For all hedges where hedge accounting is being applied, effectiveness t esting 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. 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 its own cre dit 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 uses forward foreign exchange contracts to manage the currency exposure relating to its net investments in non-U.S. dollar functional currency operations. To the extent that the notional amounts of the hedging instruments equal the portion of the investments being hedged and the underlying exchange rate of the derivative hedging instrument relates to the exchan ge rate between the functional currency of the investee and the parent's functional currency, no hedge ineffectiveness is recognized in earnings. If these exchange rates are not the same, the Company uses regression analysis to assess the prospective and r etrospective effectiveness of the hedge relationships, and any ineffectiveness is recognized in Interest income. The gain or loss from revaluing hedges of net investments in foreign operations at the spot rate is deferred and reported within Accumulated ot her comprehensive income (loss) (“AOCI”) . The forward points on the hedging instruments are excluded from hedge effectiveness testing and are recorded in Interest income. For further information on derivative instruments and hedging activities, see Note 4. Transfers of Financial Assets. Transfers of financial assets are accounted for as sales when the Company has relinquished control over the transferred assets. Any related gain or loss on sale is recorded in Net revenues. Transfers that are not accounted for as sales are treated as a collateralized financing, in certain cases referred to as “failed sales.” Securities borrowed or purchased under agreements to resell and securities loaned or sold under agreements to repurchase are treated as co llateralized financings (see Note 6). Securities purchased under agreements to resell (“reverse repurchase agreements”) and Securities sold under agreements to repurchase (“repurchase agreements”) are carried on the consolidated statements of fi nancial condition at the amounts of cash paid or received, plus accrued interest, except for certain repurchase agreements for which the Company has elected the fair value option (see Note 3). Where appropriate, repurchase agreements and reverse repurch ase agreements with the same counterparty are reported on a net basis. Securities borrowed and securities loaned are recorded at the amount of cash collateral advanced or received. Premises, Equipment and Software Costs. Premises, equipment and softw are costs consist of buildings, leasehold improvements, furniture, fixtures, computer and communications equipment, power generation assets, terminals, pipelines and software (externally purchased and developed for internal use). Premises, equipment and so ftware costs are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided by the straight-line method over the estimated useful life of the asset. Estimated useful lives are generally as follows: buildings—3 9 years; furniture and fixtures—7 years; computer and communications equipment—3 to 9 years; power generation assets—15 to 29 years; and terminals, pipeline s and equipment—3 to 30 years. Estimated useful lives for software costs are generally 3 to 10 years . Leasehold improvements are amortized over the lesser of the estimated useful life of the asset or, where applicable, the remaining term of the lease, but generally not exceeding: 25 years for building structural improvements and 15 years for other impr ovements. Premises, equipment and software costs are tested for impairment whenever events or changes in circumstances suggest that an asset’s carrying value may not be fully recoverable in accordance with current accounting guidance. Income Taxes. The Company accounts for income tax expense (benefit) using the asset and liability method. Under this method, deferred tax assets and liabilities are recorded based upon the temporary differences between the financial statement and income tax bases of a ssets and liabilities using currently enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income tax expense (benefit) in the period that includes the enactment date. The Company recognizes net deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive an d negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize deferred tax a ssets in the future in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. Uncertain tax positions are recorded on the basis of a two-step proc ess whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold , the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. Interest and penalties related to unrecognized tax benefits are classified as provision for inco me taxes. Earnings per Common Share. Basic earnings per common share (“EPS”) is computed by dividing earnings available to Morgan Stanley common shareholders by the weighted average number of common shares outstanding for the period. Earnings available to Morgan Stanley common shareholders represents net income applicable to Morgan Stanley reduced by preferred stock dividends and allocations of earnings to participating securities. Common shares outstanding include common stock and vested restr icted 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. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of EPS pursuant to the two-class method. Share-based payment awards that pay dividend equivalents subject to vesting are not deemed participating securities and are included in diluted shares outstanding (if dilutive) under the treasury stock method. The Company has granted performance-based stock units (“PSUs”) that vest and convert to shares of common st ock only if it satisfies predetermined performance and market goals. Since the issuance of the shares is contingent upon the satisfaction of certain conditions, the PSUs are included in diluted EPS based on the number of shares (if any) that would be issua ble if the end of the reporting period was the end of the contingency period. For the calculation of basic and diluted EPS, see Note 16. Deferred Compensation. Stock-Based Compensation. The Company measures compensation cost for stock-based awards at fair value and recognizes compensation cost over the service period, net of estimated forfeitures. The Company determines the fair value of RSUs (including RSUs with non-market performance conditions) based on the grant-date fair value of its com mon stock, measured as the volume-weighted average price on the date of grant. RSUs with market-based conditions are valued using a Monte Carlo valuation model. The fair value of stock options is determined using the Black-Scholes valuation model and the s ingle grant life method. Under the single grant life method, option awards with graded vesting are valued using a single weighted average expected option life. Compensation expense for stock-based compensation awards is recognized using the graded vesti ng attribution method. Compensation expense for awards with performance conditions is recognized based on the probable outcome of the performance condition at each reporting date. Compensation expense for awards with market-based conditions is recognized i rrespective of the probability of the market condition being achieved and is not reversed if the market condition is not met. The Company recognizes the expense for stock-based awards over the requisite service period. These awards generally contain cla wback and cancellation provisions. Certain awards provide the Company discretion to cancel all or a portion of the award under specified circumstances. Compensation expense for those awards is adjusted to fair value based on the Company's common stock pric e or the relevant valuation model, as appropriate, until conversion, exercise or expiration. For anticipated year-end stock-based awards granted to employees expected to be retirement-eligible under award terms that do not contain a future service requirem ent, the Company accrues the estimated cost of these awards over the course of the calendar year preceding the grant date. The Company believes that this method of recognition for retirement-eligible employees is preferable because it better reflects the p eriod over which the compensation is earned. Employee Stock Trusts. The Company maintains and utilizes at its discretion, trusts, referred to as the “Employee stock trusts,” in connection with certain stock-based compensation plans. The assets of the Employee stock trusts are consoli |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures | |
Fair Value Disclosures | 3. Fair Value s. Fair Value Measurements. Valuation Techniques for Assets and Liabilities Measured at Fair Value on a Recurring Basis. Asset/Liability Valuation Technique Valuation Hierarchy Classification Trading Assets and Trading Liabilities U.S. Government and Agency Securities U.S. Treasury Securities Fair value is determined using quoted market prices; valuation adjustments are not applied. • Generally Level 1 U.S. Agency Securities Composed of three main categories consisting of: 1. Agency-issued debt - 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. 2. Agency mortgage pass-through pool securities -Fair value is model-driven based on spreads of the comparable to-be-announced security. 3. Collateralized mortgage obligations -Fair value is determined based on quoted market prices and trade data adjusted by subsequent changes in related indices for identical or comparable securities. • Generally Level 1 - actively traded non-callable agency-issued debt securities • Generally Level 2 - callable agency-issued debt securities, agency mortgage pass-through pool securities and collateralized mortgage obligations Other Sovereign Government Obligations Fair value is determined using quoted prices in active markets when available. • Generally Level 1 • Level 2 - if the market is less active or prices are dispersed • Level 3 - in instances where the inputs are unobservable Corporate and Other Debt State and Municipal Securities Fair value is determined using: - recently executed transactions - market price quotations - pricing models that factor in, where applicable, interest rates, bond or CDS spreads and volatility • Generally Level 2 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 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, and default and prepayment rates for each asset category. Valuation levels of RMBS and CMBS indices are used as an additional data point for benchmarking purposes or to price outright index positions. • Generally Level 2 • Level 3 - 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 Auction Rate Securities ("ARS") The Company primarily holds investments in Student Loan Auction Rate Securities (“SLARS”) and Municipal Auction Rate Securities (“MARS”), which are floating rate instruments for which the rates reset through periodic auctions. SLARS are ABS backed by pools of student loans. MARS are municipal bonds often wrapped by municipal bond insurance. The fair value of ARS is primarily determined using recently executed transactions and market price quotations obtained from independent external parties such as vendors and brokers, where available. The Company uses an internally developed methodology to discount for the lack of liquidity and non-performance risk where independent external market data are not available. Inputs that impact the valuation of SLARS are: - independent external market data - recently executed transactions of comparable ARS - 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 - evidence of issuer calls/prepayment SLARS and MARS are presented within ABS and State and municipal securities, respectively, in the fair value hierarchy table. • Generally Level 2 - as the valuation technique relies on observable external data Corporate Bonds Fair value is determined using: - recently executed transactions - market price quotations (where observable) - bond spreads - CDS 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 CDS spreads and recovery rates as significant inputs. • Generally Level 2 • Level 3 - if prices, spreads or any of the other aforementioned key inputs are unobservable Collateralized Debt Obligations ("CDO") and Collateralized Loan Obligations ("CLO") The Company holds cash CDOs/CLOs that typically reference a tranche of an underlying synthetic portfolio of single name CDS spreads collateralized by corporate bonds (“credit-linked notes”) or cash portfolio of asset-backed securities/loans (“asset-backed CDOs/CLOs”). 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/CLOs 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/CLO position is evaluated independently taking into consideration available comparable market levels, underlying collateral performance and pricing, deal structures and liquidity. • Level 2 - when either the credit correlation input is insignificant or comparable market transactions are observable • Level 3 - when either the credit correlation input is deemed to be significant or comparable market transactions are unobservable Loans and Lending Commitments Corporate Loans and Lending Commitments Fair value of corporate loans is determined using: - recently executed transactions - market price quotations (where observable) - implied yields from comparable debt - market observable CDS 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. • Level 2 - if value based on observable market data for identical or comparable instruments • Level 3 - in instances where prices or significant spread inputs are unobservable Mortgage Loans Fair value is determined 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, fair value is estimated 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. • Level 2 - if value is based on observable market data for identical or comparable instruments • Level 3 - if 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 Corporate Equities Exchange-Traded Equity Securities Fair value is generally determined based on quoted prices from the exchange. To the extent these securities are actively traded, valuation adjustments are not applied. • Level 1 - if actively traded • Level 2 or Level 3 - if not actively traded Unlisted Equity Securities Fair value is determined 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. • Generally Level 3 Fund Units Listed fund units are generally marked to the exchange-traded price. Listed fund units if not actively traded and unlisted fund units are generally marked to NAV. • Level 1 - listed fund units if actively traded on an exchange Certain fund units that are measured at fair value using the NAV per share are not classified in 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. Listed derivatives that are not actively traded are valued using the same approaches as those applied to OTC derivatives. • Level 1 - listed derivatives that are actively traded • Level 2 - listed derivatives that are not actively traded 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 CDS. In the case of more established derivative products, the pricing models used by the Company are widely accepted by the financial services industry. 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 CDS on certain mortgage-backed or asset-backed securities and basket CDS, where direct trading activity or quotes are unobservable. Derivative interests in CDS 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 a 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 CDS, 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. 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. For further information on the valuation techniques for OTC derivative products, see Note 2. For further information on derivative instruments and hedging activities, see Note 4. • Generally Level 2 - OTC derivative products valued using pricing models; basket CDS if the correlation input is not deemed to be significant; commodity derivatives • Level 3 - OTC derivative products with significant unobservable inputs; basket CDS if the correlation input is deemed to be significant; commodity derivatives in instances where significant inputs are unobservable Investments 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. k 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 its best estimate of fair value. k 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. • Level 1 - exchange-traded direct equity investments in an active market • Level 2 - non-exchange-traded direct equity investments and investments in private equity and real estate funds if valued based on rounds of financing or third-party transactions; exchange-traded direct equity investments if not actively traded • Level 3 - non-exchange-traded direct equity investments and investments in private equity and real estate funds where rounds of financing or third-party transactions are not available Certain investments that are measured at fair value using the NAV per share are not classified in the fair value hierarchy. For additional disclosure about such investments, see “Fair Value of Investments Measured at Net Asset Value” herein. Physical Commodities The Company trades various physical commodities, including crude oil and refined products, natural gas, base and precious metals, and agricultural products. k Fair value is determined using observable inputs, including broker quotations and published indices. • Generally Level 2 k • Level 3 - in instances where significant inputs are unobservable Investment Securities AFS Securities AFS securities 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 ABS, auto loan ABS, corporate bonds, CLOs and actively traded equity securities. For further information on the determination of fair value, refer to the corresponding asset/liability valuation technique described herein. For further information on AFS securities, see Note 5. • Generally Level 1 - actively traded U.S. Treasury securities, non-callable agency-issued debt securities and equity securities • Generally Level 2 - callable agency-issued debt securities, agency mortgage pass-through securities, collateralized mortgage obligations, CMBS, FFELP student loan ABS, auto loan ABS, corporate bonds and CLOs Deposits Certificates of Deposit The Company issues Federal Deposit Insurance Corporation ("FDIC") insured certificates of deposit that pay either fixed coupons or that have repayment terms linked to the performance of debt or equity securities, indices or currencies. The fair value of these certificates of deposit is determined using valuation models that incorporate observable inputs referencing identical or comparable securities, including: - prices to which the deposits are linked - interest rate yield curves - option volatility and currency rates - equity prices - the impact of the Company’s own credit spreads, adjusted for the impact of the FDIC insurance, which is based on vanilla deposit issuance rates • Generally Level 2 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: k - 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 observed secondary bond market spreads. • Generally Level 2 Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase Fair value 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. • Generally Level 2 • Level 3 - in instances where the unobservable inputs are deemed significant Assets and Liabilities Measured at Fair Value on a Recurring Basis. Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting Balance at December 31, 2015 (dollars in millions) Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 17,658 $ — $ — $ — $ 17,658 U.S. agency securities 797 17,886 — — 18,683 Total U.S. government and agency securities 18,455 17,886 — — 36,341 Other sovereign government obligations 13,559 7,400 4 — 20,963 Corporate and other debt: State and municipal securities — 1,651 19 — 1,670 Residential mortgage-backed securities — 1,456 341 — 1,797 Commercial mortgage-backed securities — 1,520 72 — 1,592 Asset-backed securities — 494 25 — 519 Corporate bonds — 9,959 267 — 10,226 Collateralized debt and loan obligations — 284 430 — 714 Loans and lending commitments(1) — 4,682 5,936 — 10,618 Other debt — 2,263 448 — 2,711 Total corporate and other debt — 22,309 7,538 — 29,847 Corporate equities(2) 106,296 379 433 — 107,108 Derivative and other contracts: Interest rate contracts 406 323,586 2,052 — 326,044 Credit contracts — 22,258 661 — 22,919 Foreign exchange contracts 55 64,608 292 — 64,955 Equity contracts 653 38,552 1,084 — 40,289 Commodity contracts 3,140 10,654 3,358 — 17,152 Other — 219 — — 219 Netting(3) (3,840) (380,443) (3,120) (55,562) (442,965) Total derivative and other contracts 414 79,434 4,327 (55,562) 28,613 Investments(4): Principal investments 20 44 486 — 550 Other 163 310 221 — 694 Total investments 183 354 707 — 1,244 Physical commodities — 321 — — 321 Total trading assets(4) 138,907 128,083 13,009 (55,562) 224,437 AFS securities 34,351 32,408 — — 66,759 Securities received as collateral 11,221 3 1 — 11,225 Securities purchased under agreements to resell — 806 — — 806 Intangible assets — — 5 — 5 Total assets measured at fair value $ 184,479 $ 161,300 $ 13,015 $ (55,562) $ 303,232 Liabilities at Fair Value Deposits $ — $ 106 $ 19 $ — $ 125 Short-term borrowings — 1,647 1 — 1,648 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 12,932 — — — 12,932 U.S. agency securities 854 127 — — 981 Total U.S. government and agency securities 13,786 127 — — 13,913 Other sovereign government obligations 10,970 2,558 — — 13,528 Corporate and other debt: Commercial mortgage-backed securities — 2 — — 2 Corporate bonds — 5,035 — — 5,035 Lending commitments — 3 — — 3 Other debt — 5 4 — 9 Total corporate and other debt — 5,045 4 — 5,049 Corporate equities(2) 47,123 35 17 — 47,175 Derivative and other contracts: Interest rate contracts 466 305,151 1,792 — 307,409 Credit contracts — 22,160 1,505 — 23,665 Foreign exchange contracts 22 65,177 151 — 65,350 Equity contracts 570 42,447 3,115 — 46,132 Commodity contracts 3,012 9,431 2,308 — 14,751 Other — 43 — — 43 Netting(3) (3,840) (380,443) (3,120) (40,473) (427,876) Total derivative and other contracts 230 63,966 5,751 (40,473) 29,474 Total trading liabilities 72,109 71,731 5,772 (40,473) 109,139 Obligation to return securities received as collateral 19,312 3 1 — 19,316 Securities sold under agreements to repurchase — 532 151 — 683 Other secured financings — 2,393 461 — 2,854 Long-term borrowings — 31,058 1,987 — 33,045 Total liabilities measured at fair value $ 91,421 $ 107,470 $ 8,392 $ (40,473) $ 166,810 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, 2015 (dollars in millions) Liabilities at Fair Value Short-term borrowings $ — $ 1,699 $ 69 $ — $ 1,768 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 14,524 — — — 14,524 U.S. agency securities 1,026 135 — — 1,161 Total U.S. government and agency securities 15,550 135 — — 15,685 Other sovereign government obligations 13,611 2,379 — — 15,990 Corporate and other debt: State and municipal securities — 3 — — 3 Corporate bonds — 6,783 19 — 6,802 Lending commitments — 2 — — 2 Other debt — 7 4 — 11 Total corporate and other debt — 6,795 23 — 6,818 Corporate equities(1) 50,017 1,145 97 — 51,259 Derivative and other contracts: Interest rate contracts 780 346,806 2,071 — 349,657 Credit contracts — 22,900 1,742 — 24,642 Foreign exchange contracts 60 72,593 281 — 72,934 Equity contracts 691 53,728 2,992 — 57,411 Commodity contracts 3,845 13,551 1,771 — 19,167 Other — 51 — — 51 Netting(2) (4,652) (437,820) (3,981) (41,636) (488,089) Total derivative and other contracts 724 71,809 4,876 (41,636) 35,773 Total trading liabilities 79,902 82,263 4,996 (41,636) 125,525 Obligation to return securities received as collateral 20,327 — 1 — 20,328 Securities sold under agreements to repurchase — 443 154 — 597 Other secured financings — 3,109 341 — 3,450 Long-term borrowings — 28,925 2,462 — 31,387 Total liabilities measured at fair value $ 100,229 $ 116,439 $ 8,023 $ (41,636) $ 183,055 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting Balance at December 31, 2014 (dollars in millions) Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 16,961 $ — $ — $ — $ 16,961 U.S. agency securities 850 18,193 — — 19,043 Total U.S. government and agency securities 17,811 18,193 — — 36,004 Other sovereign government obligations 15,149 7,888 41 — 23,078 Corporate and other debt: State and municipal securities — 2,049 — — 2,049 Residential mortgage-backed securities — 1,991 175 — 2,166 Commercial mortgage-backed securities — 1,484 96 — 1,580 Asset-backed securities — 583 76 — 659 Corporate bonds — 15,800 386 — 16,186 Collateralized debt and loan obligations — 741 1,152 — 1,893 Loans and lending commitments(1) — 6,088 5,874 — 11,962 Other debt — 2,167 285 — 2,452 Total corporate and other debt — 30,903 8,044 — 38,947 Corporate equities(2) 112,490 1,357 272 — 114,119 Derivative and other contracts: Interest rate contracts 663 495,026 2,484 — 498,173 Credit contracts — 30,813 1,369 — 32,182 Foreign exchange contracts 83 72,769 249 — 73,101 Equity contracts(5) 571 45,967 1,586 — 48,124 Commodity contracts 4,105 18,042 2,268 — 24,415 Other — 376 — — 376 Netting(3) (4,910) (564,127) (4,220) (66,720) (639,977) Total derivative and other contracts 512 98,866 3,736 (66,720) 36,394 Investments(4): Principal investments 58 3 835 — 896 Other 225 198 323 — 746 Total investments 283 201 1,158 — 1,642 Physical commodities — 1,608 — — 1,608 Total trading assets(4) 146,245 159,016 13,251 (66,720) 251,792 AFS securities 37,200 32,016 — — 69,216 Securities received as collateral 21,265 51 — — 21,316 Securities purchased under agreements to resell — 1,113 — — 1,113 Intangible assets — — 6 — 6 Total assets measured at fair value $ 204,710 $ 192,196 $ 13,257 $ (66,720) $ 343,443 Liabilities at Fair Value Short-term borrowings $ — $ 1,765 $ — $ — $ 1,765 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 14,199 — — — 14,199 U.S. agency securities 1,274 85 — — 1,359 Total U.S. government and agency securities 15,473 85 — — 15,558 Other sovereign government obligations 11,653 2,109 — — 13,762 Corporate and other debt: State and municipal securities — 1 — — 1 Corporate bonds — 5,943 78 — 6,021 Lending commitments — 10 5 — 15 Other debt — 63 38 — 101 Total corporate and other debt — 6,017 121 — 6,138 Corporate equities(2) 31,340 326 45 — 31,711 Derivative and other contracts: Interest rate contracts 602 469,319 2,657 — 472,578 Credit contracts — 29,997 2,112 — 32,109 Foreign exchange contracts 21 72,233 98 — 72,352 Equity contracts(5) 416 51,405 3,751 — 55,572 Commodity contracts 4,817 15,584 1,122 — 21,523 Other — 172 — — 172 Netting(3) (4,910) (564,127) (4,220) (40,837) (614,094) Total derivative and other contracts 946 74,583 5,520 (40,837) 40,212 Total trading liabilities 59,412 83,120 5,686 (40,837) 107,381 Obligation to return securities received as collateral 25,629 56 — — 25,685 Securities sold under agreements to repurchase — 459 153 — 612 Other secured financings — 4,355 149 — 4,504 Long-term borrowings — 29,840 1,934 — 31,774 Total liabilities measured at fair value $ 85,041 $ 119,595 $ 7,922 $ (40,837) $ 171,721 _____________ (1) At December 31, 2015, Loans and lending commitments held at fair value consisted of $ 7,286 million of corporate loans, $ 1,885 million of residential real estate loans and $ 1,447 million of wholesale real estate loans. At December 31, 2014, Loans and lending commitments held at fair value consisted of $ 7,093 million of corporate loans, $ 1,682 million of residential real estate loans and $ 3,187 million of wholesale real estate loans. (2) For trading purposes, the Company holds or se lls short equity securities issued by entities in diverse industries and of varying sizes . (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 includ ed 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 shared level. For further information on derivative instruments and hedging activities, see Note 4. (4 ) Amounts exclude c ertain investments that are measured at fair value using the NAV per share, which are not classified in the fair value hierarchy. At December 31, 2015 and December 31, 2014, the f air value of these investments was $ 3,843 million and $ 5,009 million, respectively. For additional disclosure about such investments, see “Fair Value of Investments Measured at Net Asset Value” herein. (5) The balance of Level 3 ass et derivative equity contracts increased by $ 57 million with a corresponding decrease in the balance of Level 2 asset derivative equity contracts, and the balance of Level 3 liability derivative equity contracts increased by $ 842 million with a correspondi ng decrease in the balance of Level 2 liability derivative equity contracts to correct the fair value level assigned to these contracts at December 31, 2014. The total amount of asset and liability derivative equity contracts remained unchanged. Changes i n 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 2015 , 2014 and 2013 , respect ively . 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 rel ated 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 durin g 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. Roll-forward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis. Beginning Balance at December 31, 2014 Total Realized and Unrealized Gains (Losses)(1) Purchases (2) Sales Issuances Settlements Net Transfers Ending Balance at December 31, 2015 Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at December 31, 2015 (dollars in millions) Assets at Fair Value Trading assets: Other sovereign government obligations $ 41 $ (1) $ 2 $ (30) $ — $ — $ (8) $ 4 $ — Corporate and other debt: State and municipal securities — 2 3 — — — 14 19 2 Residential mortgage-backed securities 175 24 176 (83) — — 49 341 12 Commercial mortgage-backed securities 96 (28) 27 (23) — — — 72 (32) Asset-backed securities 76 (9) 23 (30) — — (35) 25 — Corporate bonds 386 (44) 374 (381) — (53) (15) 267 (44) Collateralized debt and loan obligations 1,152 123 325 (798) — (344) (28) 430 (19) Loans and lending commitments 5,874 (42) 3,216 (207) — (2,478) (427) 5,936 (76) Other debt 285 (23) 131 (5) — (81) 141 448 (9) Total corporate and other debt 8,044 3 4,275 (1,527) — (2,956) (301) 7,538 (166) Corporate equities 272 (1) 373 (333) — — 122 433 11 Net derivative and other contracts(3): Interest rate contracts (173) (51) 58 — (54) 207 273 260 20 Credit contracts (743) (172) 19 — (121) 196 (23) (844) (179) Foreign exchange contracts 151 53 4 — (2) (18) (47) 141 52 Equity contracts(4) (2,165) 166 81 (1) (310) 22 176 (2,031) 62 Commodity contracts 1,146 433 35 — (222) (116) (226) 1,050 40 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 4. Derivative Instruments and Hedging Activities. The Company trades and makes markets 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, cr edit 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 market-making, foreign currency exposure management, and asset and liab ility 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 r elated 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. Fair Value and Notional of Derivative Instruments. Fair Value and Notional of Derivative Assets and Liabilities . Derivative Assets at December 31, 2015 Fair Value Notional Bilateral OTC Cleared OTC Exchange Traded Total Bilateral OTC Cleared OTC Exchange Traded Total (dollars in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 2,825 $ 1,442 $ — $ 4,267 $ 36,999 $ 35,362 $ — $ 72,361 Foreign exchange contracts 166 1 — 167 5,996 167 — 6,163 Total derivatives designated as accounting hedges 2,991 1,443 — 4,434 42,995 35,529 — 78,524 Derivatives not designated as accounting hedges(1): Interest rate contracts 220,289 101,276 212 321,777 4,348,002 5,748,525 1,218,645 11,315,172 Credit contracts 19,310 3,609 — 22,919 585,731 139,301 — 725,032 Foreign exchange contracts 64,438 295 55 64,788 1,907,290 13,402 7,715 1,928,407 Equity contracts 20,212 — 20,077 40,289 316,770 — 229,859 546,629 Commodity contracts 13,114 — 4,038 17,152 67,449 — 82,313 149,762 Other 219 — — 219 5,684 — — 5,684 Total derivatives not designated as accounting hedges 337,582 105,180 24,382 467,144 7,230,926 5,901,228 1,538,532 14,670,686 Total derivatives $ 340,573 $ 106,623 $ 24,382 $ 471,578 $ 7,273,921 $ 5,936,757 $ 1,538,532 $ 14,749,210 Cash collateral netting (50,335) (1,037) — (51,372) — — — — Counterparty netting (265,707) (104,294) (21,592) (391,593) — — — — Total derivative assets $ 24,531 $ 1,292 $ 2,790 $ 28,613 $ 7,273,921 $ 5,936,757 $ 1,538,532 $ 14,749,210 Derivative Liabilities at December 31, 2015 Fair Value Notional Bilateral OTC Cleared OTC Exchange Traded Total Bilateral OTC Cleared OTC Exchange Traded Total (dollars in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 20 $ 250 $ — $ 270 $ 3,560 $ 9,869 $ — $ 13,429 Foreign exchange contracts 56 6 — 62 4,604 455 — 5,059 Total derivatives designated as . accounting hedges 76 256 — 332 8,164 10,324 — 18,488 Derivatives not designated as accounting hedges(1): Interest rate contracts 203,004 103,852 283 307,139 4,030,039 5,682,322 1,077,710 10,790,071 Credit contracts 19,942 3,723 — 23,665 562,027 131,388 — 693,415 Foreign exchange contracts 65,034 232 22 65,288 1,868,015 13,322 2,655 1,883,992 Equity contracts 25,708 — 20,424 46,132 332,734 — 229,266 562,000 Commodity contracts 10,864 — 3,887 14,751 59,169 — 62,974 122,143 Other 43 — — 43 4,114 — — 4,114 Total derivatives not designated as accounting hedges 324,595 107,807 24,616 457,018 6,856,098 5,827,032 1,372,605 14,055,735 Total derivatives $ 324,671 $ 108,063 $ 24,616 $ 457,350 $ 6,864,262 $ 5,837,356 $ 1,372,605 $ 14,074,223 Cash collateral netting (33,332) (2,951) — (36,283) — — — — Counterparty netting (265,707) (104,294) (21,592) (391,593) — — — — Total derivative liabilities $ 25,632 $ 818 $ 3,024 $ 29,474 $ 6,864,262 $ 5,837,356 $ 1,372,605 $ 14,074,223 Derivative Assets at December 31, 2014 Fair Value Notional Bilateral OTC Cleared OTC Exchange Traded Total Bilateral OTC Cleared OTC Exchange Traded Total (dollars in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 3,947 $ 1,053 $ — $ 5,000 $ 44,324 $ 27,692 $ — $ 72,016 Foreign exchange contracts 498 6 — 504 9,362 261 — 9,623 Total derivatives designated as accounting hedges 4,445 1,059 — 5,504 53,686 27,953 — 81,639 Derivatives not designated as accounting hedges(2): Interest rate contracts 281,214 211,552 407 493,173 4,854,953 9,187,454 1,467,056 15,509,463 Credit contracts 27,776 4,406 — 32,182 806,441 167,390 — 973,831 Foreign exchange contracts 72,362 152 83 72,597 1,955,343 11,538 9,663 1,976,544 Equity contracts 23,208 — 24,916 48,124 299,363 — 271,164 570,527 Commodity contracts 17,698 — 6,717 24,415 115,792 — 156,440 272,232 Other 376 — — 376 5,179 — — 5,179 Total derivatives not designated as accounting hedges 422,634 216,110 32,123 670,867 8,037,071 9,366,382 1,904,323 19,307,776 Total derivatives $ 427,079 $ 217,169 $ 32,123 $ 676,371 $ 8,090,757 $ 9,394,335 $ 1,904,323 $ 19,389,415 Cash collateral netting (58,541) (4,654) — (63,195) — — — — Counterparty netting (338,041) (210,922) (27,819) (576,782) — — — — Total derivative assets $ 30,497 $ 1,593 $ 4,304 $ 36,394 $ 8,090,757 $ 9,394,335 $ 1,904,323 $ 19,389,415 Derivative Liabilities at December 31, 2014 Fair Value Notional Bilateral OTC Cleared OTC Exchange Traded Total Bilateral OTC Cleared OTC Exchange Traded Total (dollars in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 125 $ 99 $ — $ 224 $ 2,024 $ 7,588 $ — $ 9,612 Foreign exchange contracts 5 1 — 6 1,491 121 — 1,612 Total derivatives designated as accounting hedges 130 100 — 230 3,515 7,709 — 11,224 Derivatives not designated as accounting hedges(2): Interest rate contracts 264,579 207,482 293 472,354 4,615,886 9,138,417 1,714,021 15,468,324 Credit contracts 28,165 3,944 — 32,109 714,181 154,054 — 868,235 Foreign exchange contracts 72,156 169 21 72,346 1,947,178 11,477 1,761 1,960,416 Equity contracts 30,061 — 25,511 55,572 339,884 — 302,205 642,089 Commodity contracts 14,740 — 6,783 21,523 93,019 — 132,136 225,155 Other 172 — — 172 5,478 — — 5,478 Total derivatives not designated as accounting hedges 409,873 211,595 32,608 654,076 7,715,626 9,303,948 2,150,123 19,169,697 Total derivatives $ 410,003 $ 211,695 $ 32,608 $ 654,306 $ 7,719,141 $ 9,311,657 $ 2,150,123 $ 19,180,921 Cash collateral netting (37,054) (258) — (37,312) — — — — Counterparty netting (338,041) (210,922) (27,819) (576,782) — — — — Total derivative liabilities $ 34,908 $ 515 $ 4,789 $ 40,212 $ 7,719,141 $ 9,311,657 $ 2,150,123 $ 19,180,921 _____________ (1) Notional amounts include gross notionals related to open long and short futures contracts of $ 1,009.5 billion and $ 653.0 billion, respectively. The unsettled fair value on these futures contracts (excluded from the table above) of $ 1,145 million and $ 437 million is included in Customer and other receivables and Customer and other payables, res pectively, in the consolidated statements of financial condition. (2) Notional amounts include gross notionals related to open long and short futures contracts of $ 685.3 billion and $ 1,122.3 billion, respectively. The unsettled fair value on these futures contracts (excluded from the table above) of $ 472 million and $ 21 million is included in Customer and other receivables and Customer and other payables, respectively, in the consolidated statements of financial condition. Offsetting of Derivative Instr uments. Offsetting of Derivative Instruments and Related Collateral . At December 31, 2015 Gross Amounts(1) Amounts Offset in the Consolidated Statements of Financial Condition Net Amounts Presented in the Consolidated Statements of Financial Condition Amounts Not Offset in the Consolidated Statements of Financial Condition(2) Net Exposure Financial Instruments Collateral Other Cash Collateral (dollars in millions) Derivative assets Bilateral OTC $ 340,573 $ (316,042) $ 24,531 $ (9,190) $ (9) $ 15,332 Cleared OTC 106,623 (105,331) 1,292 — — 1,292 Exchange traded 24,382 (21,592) 2,790 — — 2,790 Total derivative assets $ 471,578 $ (442,965) $ 28,613 $ (9,190) $ (9) $ 19,414 Derivative liabilities Bilateral OTC $ 324,671 $ (299,039) $ 25,632 $ (5,384) $ (5) $ 20,243 Cleared OTC 108,063 (107,245) 818 — — 818 Exchange traded 24,616 (21,592) 3,024 (405) — 2,619 Total derivative liabilities $ 457,350 $ (427,876) $ 29,474 $ (5,789) $ (5) $ 23,680 At December 31, 2014 Gross Amounts(1) Amounts Offset in the Consolidated Statements of Financial Condition Net Amounts Presented in the Consolidated Statements of Financial Condition Amounts Not Offset in the Consolidated Statements of Financial Condition(2) Net Exposure Financial Instruments Collateral Other Cash Collateral (dollars in millions) Derivative assets Bilateral OTC $ 427,079 $ (396,582) $ 30,497 $ (9,844) $ (19) $ 20,634 Cleared OTC 217,169 (215,576) 1,593 — — 1,593 Exchange traded 32,123 (27,819) 4,304 — — 4,304 Total derivative assets $ 676,371 $ (639,977) $ 36,394 $ (9,844) $ (19) $ 26,531 Derivative liabilities Bilateral OTC $ 410,003 $ (375,095) $ 34,908 $ (11,192) $ (179) $ 23,537 Cleared OTC 211,695 (211,180) 515 — (6) 509 Exchange traded 32,608 (27,819) 4,789 (726) — 4,063 Total derivative liabilities $ 654,306 $ (614,094) $ 40,212 $ (11,918) $ (185) $ 28,109 (1) Amounts include $ 4.2 billion of derivative assets and $ 5.2 billion of derivative liabilities at December 31, 2015 and $ 6.5 billion of derivative assets and $ 6.9 billion of derivative liabilities at December 31, 2014 , 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” herein, for additional disclosure about gross fair values and notionals for derivative instruments by risk type. (2) Amounts relate to master netting a greements and collateral a greements that 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. For information related to offsetting of certain collateralized transactions, see Note 6. A t December 31, 2015 , c ash collateral payables of $ 86 million and at December 31, 2014 , cash collateral receivables and payables of $ 21 million and $ 30 million , respectively, were not offset against certain contracts that did n ot meet the definition of a derivative. Gains (Losses) on Fair Value Hedges. Gains (Losses) Recognized in Interest Expense Product Type 2015 2014 2013 (dollars in millions) Derivatives $ (700) $ 1,462 $ (4,332) Borrowings 461 (1,616) 4,335 Total $ (239) $ (154) $ 3 Gains (Losses) on Derivatives Designated as Net Investment Hedges. Gains (Losses) Recognized in Other Comprehensive Income (effective portion) Product Type 2015 2014 2013 (dollars in millions) Foreign exchange contracts(1) $ 434 $ 606 $ 448 ____________ (1) Losses of $ 149 million, $ 186 million and $ 154 million related to the forward points on the hedging instruments were excluded from hedge effectiveness testing and recognized in Interest income during 2015 , 2014 and 2013, respectively. Gains (Losses) on Trading Instruments. The table below summarizes gains and losses included in Trading revenues in the consolidated statement s of income from trading activities. These activities include revenues related to derivative and non-derivative financial instruments. The Company generally utilizes financial instruments across a variety of product types in connection with their market-making and related risk management strategies. Accordingly, the trading revenues presented belo w are not representative of the manner in which the Company manages its business activities and are prepared in a manner similar to the presentation of trading revenues for regulatory reporting purposes. Gains (Losses) Recognized in Trading Revenues Product Type 2015 2014 2013 (dollars in millions) Interest rate contracts $ 1,249 $ 1,065 $ 820 Foreign exchange contracts 984 729 963 Equity security and index contracts(1) 5,695 4,603 5,044 Commodity and other contracts(2) 793 1,055 688 Credit contracts 775 1,274 2,525 Subtotal $ 9,496 $ 8,726 $ 10,040 Debt valuation adjustment 618 651 (681) Total $ 10,114 $ 9,377 $ 9,359 ____________ (1) Dividend income is included within equity security and index contracts. (2) Other contracts represent contracts not reported as interest rate, foreign exchange, equity security and index or credit contracts . OTC Derivative Products—Trading Assets. Counterparty Credit Rating and Remaining Contract Maturity of the Fair Value of OTC Derivative Assets. At December 31, 2015(1) Years to Maturity Cross-Maturity and Cash Collateral Netting(3) Net Exposure Post-cash Collateral Net Exposure Post-collateral(4) Credit Rating(2) Less than 1 1 - 3 3 - 5 Over 5 (dollars in millions) AAA $ 203 $ 453 $ 827 $ 3,665 $ (4,319) $ 829 $ 715 AA 2,689 2,000 1,876 9,223 (10,981) 4,807 2,361 A 9,748 8,191 4,774 20,918 (34,916) 8,715 5,448 BBB 3,614 4,863 1,948 11,801 (15,086) 7,140 4,934 Non-investment grade 3,982 2,333 1,157 3,567 (6,716) 4,323 3,166 Total $ 20,236 $ 17,840 $ 10,582 $ 49,174 $ (72,018) $ 25,814 $ 16,624 At December 31, 2014(1) Years to Maturity Cross-Maturity and Cash Collateral Netting(3) Net Exposure Post-cash Collateral Net Exposure Post-collateral(4) Credit Rating(2) Less than 1 1-3 3-5 Over 5 (dollars in millions) AAA $ 499 $ 246 $ 1,313 $ 4,281 $ (5,009) $ 1,330 $ 1,035 AA 2,679 2,811 2,704 14,137 (15,415) 6,916 4,719 A 11,733 10,833 7,585 23,968 (43,644) 10,475 6,520 BBB 5,119 3,753 2,592 13,132 (15,844) 8,752 6,035 Non-investment grade 3,196 3,089 1,541 2,499 (5,727) 4,598 3,918 Total $ 23,226 $ 20,732 $ 15,735 $ 58,017 $ (85,639) $ 32,071 $ 22,227 _____________ (1) Fair values shown represent the Company’s net exposure to counterparties related to its OTC derivative products. (2) Obligor credit ratings are determined by the 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 colla teral received is netted on a counterparty basis, provided legal right of offset exists. (4) Fair value is shown, net of collateral received ( primarily cash and U.S. government and agency securities). Credit Risk-Related Contingencies. In connection wi th 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 rating downgrade of the Company. Net Derivative Liabilities and Collateral Posted. The following table presents the aggregate fair value of certain derivative contracts that contain credit risk-related contingent features that are in a net liability position for which the Company has posted collateral in the normal course of business. At December 31, 2015 (dollars in millions) Net derivative liabilities $ 23,526 Collateral posted 19,070 The additional collateral or termination payments that may be called in the event of a future credit rating downgrade vary by contract and can be based on ratings by either or both of Moody’s Investors Service, Inc. (“ Moody’s”) and Standard & Poor’s Ratings Services (“ S&P”) . The table below shows the future potential collateral amounts and termination payments that could be called or required by counterparties or exchange and clearing organizations in the event of one-notch or two-notch downgrade scen arios based on the relevant contractual downgrade triggers. Incremental Collateral or Termination Payments upon Potential Future Ratings Downgrade. At December 31, 2015(1) (dollars in millions) One-notch downgrade $ 1,224 Two-notch downgrade 1,146 ________ (1) Amounts include $ 1,573 million 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, pri ncipally 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 and insurance and other financial institutions. N otional and F air V alue of P rotection S old and P rotection P urchased through C redit D efault S waps . At December 31, 2015 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 $ 420,806 $ 1,980 $ 405,361 $ (2,079) Index and basket credit default swaps 199,688 (102) 173,936 (82) Tranched index and basket credit default swaps 69,025 (1,093) 149,631 2,122 Total $ 689,519 $ 785 $ 728,928 $ (39) At December 31, 2014 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 $ 535,415 $ (2,479) $ 509,872 $ 1,641 Index and basket credit default swaps 276,465 (1,777) 229,789 1,563 Tranched index and basket credit default swaps 96,182 (2,355) 194,343 3,334 Total $ 908,062 $ (6,611) $ 934,004 $ 6,538 Credit Ratings of Reference Obligation and Maturities of Credit Protection Sold . At December 31, 2015 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability(1) Years to Maturity Less than 1 1-3 3-5 Over 5 Total (dollars in millions) Single name credit default swaps(2): Investment grade $ 84,543 $ 138,467 $ 63,754 $ 12,906 $ 299,670 $ (1,831) Non-investment grade 38,054 56,261 24,432 2,389 121,136 3,811 Total $ 122,597 $ 194,728 $ 88,186 $ 15,295 $ 420,806 $ 1,980 Index and basket credit default swaps(2): Investment grade $ 33,507 $ 59,403 $ 45,505 $ 5,327 $ 143,742 $ (1,977) Non-investment grade 52,590 43,899 15,480 13,002 124,971 782 Total $ 86,097 $ 103,302 $ 60,985 $ 18,329 $ 268,713 $ (1,195) Total credit default swaps sold $ 208,694 $ 298,030 $ 149,171 $ 33,624 $ 689,519 $ 785 Other credit contracts 19 107 2 332 460 (24) Total credit derivatives and other credit contracts $ 208,713 $ 298,137 $ 149,173 $ 33,956 $ 689,979 $ 761 At December 31, 2014 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability(1) Years to Maturity Less than 1 1-3 3-5 Over 5 Total (dollars in millions) Single name credit default swaps(2): Investment grade $ 82,873 $ 199,776 $ 103,628 $ 20,490 $ 406,767 $ (4,252) Non-investment grade 29,857 66,066 29,011 3,714 128,648 1,773 Total $ 112,730 $ 265,842 $ 132,639 $ 24,204 $ 535,415 $ (2,479) Index and basket credit default swaps(2): Investment grade $ 49,877 $ 85,052 $ 78,276 $ 12,507 $ 225,712 $ (4,624) Non-investment grade 25,750 88,105 22,971 10,109 146,935 492 Total $ 75,627 $ 173,157 $ 101,247 $ 22,616 $ 372,647 $ (4,132) Total credit default swaps sold $ 188,357 $ 438,999 $ 233,886 $ 46,820 $ 908,062 $ (6,611) Other credit contracts 51 539 1 620 1,211 (500) Total credit derivatives and other credit contracts $ 188,408 $ 439,538 $ 233,887 $ 47,440 $ 909,273 $ (7,111) _____________ (1) Fair value amounts are shown on a gross basis prior to cash collateral or counterparty netting. (2) In order to provide an indication of the current payment status or performance risk of the credit default swaps, a breakdown of credit default swaps based on the Company’s internal credit ratings by investment grade and non-investment grade is provided. Du ring 2015, the Company began utilizing its internal credit ratings as compared with 2014 where external agency ratings, if available, were utilized. The change in the rating methodology did not have a significant impact on investment grade versus non-inves tment grade classifications or the fair values. 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 prem ium (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. Index and Basket Credit Default Swaps. Index and basket credit default swaps are products where credit protection is pr ovided on a portfolio 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 swap. The Company also ente rs into tranched index and basket credit default swaps where credit protection is provided on a particular portion of the portfolio loss distribution. 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. Credit Protection Sold through CLNs and CDOs. The Company has invested in credit-linked notes (“ 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 n ot 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 not ional amount of approximately $ 577.7 billion and $ 731.0 billion at December 31, 2015 and December 31, 2014 , respectively, compared with a not ional amount of approximately $ 619.5 billion and $ 804.7 billion at December 31, 2015 and December 31, 2014 , respectively, of credit protection sold with identical un derlying reference obligations. The purchase of credit protection does not represent the sole manner in which the Company risk manages its exposure to credit deriva tives. 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. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investment securities | |
Investment Securities | 5. Investment Securities. AFS and HTM Securities. At December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in millions) AFS debt securities: U.S. government and agency securities: U.S. Treasury securities $ 31,555 $ 5 $ 143 $ 31,417 U.S. agency securities(1) 21,103 29 156 20,976 Total U.S. government and agency securities 52,658 34 299 52,393 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,906 1 60 1,847 Non-agency 2,220 3 25 2,198 Auto loan asset-backed securities 2,556 — 9 2,547 Corporate bonds 3,780 5 30 3,755 Collateralized loan obligations 502 — 7 495 FFELP student loan asset-backed securities(2) 3,632 — 115 3,517 Total corporate and other debt 14,596 9 246 14,359 Total AFS debt securities 67,254 43 545 66,752 AFS equity securities 15 — 8 7 Total AFS securities 67,269 43 553 66,759 HTM securities: U.S. government securities: U.S. Treasury securities 1,001 — 3 998 U.S. agency securities(1) 4,223 1 34 4,190 Total HTM securities 5,224 1 37 5,188 Total Investment securities $ 72,493 $ 44 $ 590 $ 71,947 At December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in millions) AFS debt securities: U.S. government and agency securities: U.S. Treasury securities $ 35,855 $ 42 $ 67 $ 35,830 U.S. agency securities(1) 18,030 77 72 18,035 Total U.S. government and agency securities 53,885 119 139 53,865 Corporate and other debt: Commercial mortgage-backed securities: Agency 2,288 1 76 2,213 Non-agency 1,820 11 6 1,825 Auto loan asset-backed securities 2,433 — 5 2,428 Corporate bonds 3,640 10 22 3,628 Collateralized loan obligations 1,087 — 20 1,067 FFELP student loan asset-backed securities(2) 4,169 18 8 4,179 Total corporate and other debt 15,437 40 137 15,340 Total AFS debt securities 69,322 159 276 69,205 AFS equity securities 15 — 4 11 Total AFS securities 69,337 159 280 69,216 HTM securities: U.S. government securities: U.S. Treasury securities 100 — — 100 Total HTM securities 100 — — 100 Total Investment securities $ 69,437 $ 159 $ 280 $ 69,316 ______________ U.S. agency securities are compo sed of three main categories consisting of agency-issued debt, agency mortgage pass-through pool securities and collateralized mortgage obligations . 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. Fair Value of Investment Securities in an Unrealized Loss Position . At December 31, 2015 Less than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (dollars in millions) AFS debt securities: U.S. government and agency securities: U.S. Treasury securities $ 25,994 $ 126 $ 2,177 $ 17 $ 28,171 $ 143 U.S. agency securities 14,242 135 639 21 14,881 156 Total U.S. government and agency securities 40,236 261 2,816 38 43,052 299 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,185 44 422 16 1,607 60 Non-agency 1,479 21 305 4 1,784 25 Auto loan asset-backed securities 1,644 7 881 2 2,525 9 Corporate bonds 2,149 19 525 11 2,674 30 Collateralized loan obligations 352 5 143 2 495 7 FFELP student loan asset-backed securities 2,558 79 929 36 3,487 115 Total corporate and other debt 9,367 175 3,205 71 12,572 246 Total AFS debt securities 49,603 436 6,021 109 55,624 545 AFS equity securities 7 8 — — 7 8 Total AFS securities 49,610 444 6,021 109 55,631 553 HTM securities: U.S. government and agency securities: U.S. Treasury securities 898 3 — — 898 3 U.S. agency securities 3,677 34 — — 3,677 34 Total HTM securities 4,575 37 — — 4,575 37 Total Investment securities $ 54,185 $ 481 $ 6,021 $ 109 $ 60,206 $ 590 At December 31, 2014 Less than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (dollars in millions) AFS debt securities: U.S. government and agency securities: U.S. Treasury securities $ 11,410 $ 14 $ 5,924 $ 53 $ 17,334 $ 67 U.S. agency securities 2,739 6 4,133 66 6,872 72 Total U.S. government and agency securities 14,149 20 10,057 119 24,206 139 Corporate and other debt: Commercial mortgage-backed securities: Agency 42 — 1,822 76 1,864 76 Non-agency 706 3 346 3 1,052 6 Auto loan asset-backed securities 2,034 5 — — 2,034 5 Corporate bonds 905 6 1,299 16 2,204 22 Collateralized loan obligations — — 1,067 20 1,067 20 FFELP student loan asset-backed securities 1,523 6 393 2 1,916 8 Total corporate and other debt 5,210 20 4,927 117 10,137 137 Total AFS debt securities 19,359 40 14,984 236 34,343 276 AFS equity securities 11 4 — — 11 4 Total Investment securities $ 19,370 $ 44 $ 14,984 $ 236 $ 34,354 $ 280 The Company believes that there are no securities in an unrealized loss position that are deemed to be other-than-temporarily-impaired at December 31, 2015 and December 31, 2014 for the reasons discussed below. For AFS debt securities, the Company does not intend to sell the securities and is not likely to be required to sell the securities prior to recovery of amortized cost basis. For AFS and HTM debt securities, the securities have not experienced credit losses as the net unrealized losses reported in the table above are primarily due to higher interest rates since those securities were purchased. Additionally, the Company does not expect to experience a credit loss based on consideration of the relevant information (as discussed in Note 2 ), inclu ding for U.S. government and agency securities, the existence of an explicit and implicit guarantee provided by the U.S. government. The risk of credit loss on securities in an unrealized loss position is considered minimal because all of the Company’s age ncy securities as well as the Company’s asset-backed securities, CMBS and CLOs are highly rated and because the Company’s corporate bonds are all investment grade. For AFS equity securities, the Company has the intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in market value. Amortized C ost, Fair Value and Annualized Average Yield of Investment Securities by Contractual Maturity Dates. At December 31, 2015 Amortized Cost Fair Value Annualized Average Yield (dollars in millions) AFS debt securities: U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 6,209 $ 6,205 0.7% After 1 year through 5 years 24,900 24,765 1.0% After 5 years through 10 years 446 447 2.1% Total 31,555 31,417 U.S. agency securities: After 1 year through 5 years 2,986 2,984 0.6% After 5 years through 10 years 1,652 1,650 1.9% After 10 years 16,465 16,342 1.8% Total 21,103 20,976 Total U.S. government and agency securities 52,658 52,393 1.2% Corporate and other debt: Commercial mortgage-backed securities: Agency: Due within 1 year 49 50 0.7% After 1 year through 5 years 570 567 0.9% After 5 years through 10 years 213 209 1.5% After 10 years 1,074 1,021 1.5% Total 1,906 1,847 Non-agency: After 10 years 2,220 2,198 1.9% Total 2,220 2,198 Auto loan asset-backed securities: Due within 1 year 64 64 0.9% After 1 year through 5 years 2,302 2,294 1.2% After 5 years through 10 years 190 189 1.7% Total 2,556 2,547 Corporate bonds: Due within 1 year 412 412 1.1% After 1 year through 5 years 2,615 2,595 1.6% After 5 years through 10 years 753 748 2.7% Total 3,780 3,755 Collateralized loan obligations: After 5 years through 10 years 502 495 1.5% Total 502 495 FFELP student loan asset-backed securities: After 1 year through 5 years 88 88 0.6% After 5 years through 10 years 776 759 0.9% After 10 years 2,768 2,670 0.9% Total 3,632 3,517 Total corporate and other debt 14,596 14,359 1.4% Total AFS debt securities 67,254 66,752 1.3% AFS equity securities 15 7 ― % Total AFS securities 67,269 66,759 1.3% HTM securities: U.S. government securities: U.S. Treasury securities: After 1 year through 5 years 1,001 998 1.0% Total 1,001 998 U.S. agency securities: After 10 years 4,223 4,190 2.3% Total 4,223 4,190 Total HTM securities 5,224 5,188 2.1% Total Investment securities $ 72,493 $ 71,947 1.3% See Note 13 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, non-agency CMBS , auto loan ABS , CLO and FFELP student loan ABS . Gross Realized Gains and Gross Realized (Losses) on Sales of AFS Securities. 2015 2014 2013 (dollars in millions) Gross realized gains $ 116 $ 41 $ 49 Gross realized (losses) (32) (1) (4) Total $ 84 $ 40 $ 45 Gross realized gains and losses are recognized in Other revenues in the consolidated statements of income. |
Collateralized Transactions
Collateralized Transactions | 12 Months Ended |
Dec. 31, 2015 | |
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 cust omers’ needs and to finance its inventory positions. The Company manages credit exposure arising from such transactions by, in appropriate circumstances, entering into master netting agree ments 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), with the right to net a counterparty’s rights and obligations under suc h agreement and liquidate and set off collateral held by the Company 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 ) . I n 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 risk related to a decline in the market value of collateral (pledged or received) is managed by setting appropriate market-based haircuts. Increases in collateral margin calls on secured financing due to market value declines may be mitigated by increases in collateral margin calls on reverse repurchase agreements and securities borrowed transactions with similar quality collateral. Additionally, the C ompany may request lower quality collateral pledged be replaced with higher quality collateral through collateral substitution rights in the underlying agreements. The Company actively manages its secured financing in a manner that reduces the potential refinancing risk of secured financing for less liquid assets. The Company considers the quality of collateral when negotiating collateral eligibility with counterparties, as defined by its fundability criteria. The Company utilizes shorter-term s ecured financing for highly liquid assets and has established longer tenor limits for less liquid assets, for which funding may be at risk in the event of a market disruption. Offsetting of Certain Collateralized Transactions. At December 31, 2015 Gross Amounts(1) Amounts Offset in the Consolidated Statements of Financial Condition Net Amounts Presented in the Consolidated Statements of Financial Condition Financial Instruments Not Offset in the Consolidated Statements of Financial Condition(2) Net Exposure (dollars in millions) Assets Securities purchased under agreements to resell $ 135,714 $ (48,057) $ 87,657 $ (84,752) $ 2,905 Securities borrowed 147,445 (5,029) 142,416 (134,250) 8,166 Liabilities Securities sold under agreements to repurchase $ 84,749 $ (48,057) $ 36,692 $ (31,604) $ 5,088 Securities loaned 24,387 (5,029) 19,358 (18,881) 477 At December 31, 2014 Gross Amounts(1) Amounts Offset in the Consolidated Statements of Financial Condition Net Amounts Presented in the Consolidated Statements of Financial Condition Financial Instruments Not Offset in the Consolidated Statements of Financial Condition(2) Net Exposure (dollars in millions) Assets Securities purchased under agreements to resell $ 148,234 $ (64,946) $ 83,288 $ (79,343) $ 3,945 Securities borrowed 145,556 (8,848) 136,708 (128,282) 8,426 Liabilities Securities sold under agreements to repurchase $ 134,895 $ (64,946) $ 69,949 $ (56,454) $ 13,495 Securities loaned 34,067 (8,848) 25,219 (24,252) 967 _____________ (1) Amounts include $ 2.6 billion of Securities purchased under agreements to resell, $ 3.0 billion of Securities borrowed and $ 4.9 billion of Securities sold under agreements to repurchase at December 31, 2015 and $3.9 billion of Securities purchased under agreements to resell, $4.2 billion of Securities borrowed, $15.6 billion of Securities sold under agreements to repurchase and $0.7 billion of Securities loaned at December 31, 2014 , which are either not subject to master netting 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 that 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. For information related to offsett ing of derivatives, see Note 4. Secured Financing Transactions—Maturities and Collateral Pledged. Gross Secured Financing Balances by Remaining Contractual Maturity. At December 31, 2015 Remaining Contractual Maturity Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total (dollars in millions) Securities sold under agreements to repurchase(1) $ 20,410 $ 25,245 $ 13,221 $ 25,873 $ 84,749 Securities loaned(1) 12,247 478 2,156 9,506 24,387 Gross amount of secured financing included in the above offsetting disclosure $ 32,657 $ 25,723 $ 15,377 $ 35,379 $ 109,136 Obligation to return securities received as collateral 19,316 — — — 19,316 Total $ 51,973 $ 25,723 $ 15,377 $ 35,379 $ 128,452 Gross Secured Financing Balances by Class of Collateral Pledged. At December 31, 2015 (dollars in millions) Securities sold under agreements to repurchase(1) U.S. government and agency securities $ 36,609 State and municipal securities 173 Other sovereign government obligations 24,820 Asset-backed securities 441 Corporate and other debt 4,020 Corporate equities 18,473 Other 213 Total securities sold under agreements to repurchase $ 84,749 Securities loaned(1) Other sovereign government obligations $ 7,336 Corporate and other debt 71 Corporate equities 16,972 Other 8 Total securities loaned $ 24,387 Gross amount of secured financing included in the above offsetting disclosure $ 109,136 Obligation to return securities received as collateral Corporate equities $ 19,313 Corporate and other debt 3 Total obligation to return securities received as collateral $ 19,316 Total $ 128,452 _____________ (1) Amo unts are presented on a gross basis, prior to netting in the consolidated statements of financial condition . Trading Assets Pledged. The Company pledges its trading assets to collateralize repurchase agreements and other secured 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 consolidated statements of financial condition. At December 31, 2015 and December 31, 2014 , the carrying value 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 reple dge the collateral were $ 35.0 billion and $ 31.3 bil lion, respectively. Collateral Received. The Company receives collateral in the form of securities in connection with reverse repurchase agreements, securities borrowed and derivative transactions, customer margin loans and securities-based lending. 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. Th e Company additionally receives securities as collateral in connection with certain securities-for-securities transactions in which it is the lender. In instances where the Company is permitted to sell or repledge these securities, it reports the fair valu e of the collateral received and the related obligation to return the collateral in its consolidated statements of financial condition. At December 31, 2015 and December 31, 2014, the total fair value of financial instruments received as collateral where the Company is permitted to sell or repledge the securities was $ 522.6 billion and $ 545.7 billion, respectively, and the fair value of the portion that had been sold or repledged was $ 398.1 billion and $ 403.4 billion, respectively. Concentration Risk. The Company is subject to concentration risk by holding large positions in certain types of securities, loans or commitments to purchase securities of a single issuer, including sovereign governments and other entities, issuers located in a particular coun try or geographic area, public and private issuers involving developing countries or issuers engaged in a particular industry. Trading assets owned by the Company include U.S. government and agency securities and securities issued by other sovereign govern ments (principally the United Kingdom (“U.K.”), Japan, Brazil and Hong Kong), which, in the aggregate, represented approximately 7 % of the Company’s total assets at both December 31, 2015 and December 31, 2014 . In addition, substantially all of the c ollateral held by the Company for resale agreements or bonds borrowed, which together represented approximately 15 % and 17 % of the Company’s total assets at December 31, 2015 and December 31, 2014 , respectively, consists of securities issued by the U .S. government, federal agencies or other sovereign government obligations. Positions taken and commitments made by the Company, including positions taken and underwriting and financing commitments made in connection with its private equity, principal inve stment and lending activities, often involve substantial amounts and significant exposure to individual issuers and businesses, including non-investment grade issuers. In addition, the Company may originate or purchase certain residential and commercial mo rtgage loans that could contain certain terms and features that may result in additional credit risk as compared with more traditional types of mortgages. Such terms and features may include loans made to borrowers subject to payment increases or loans wit h high loan-to-value ratios. Other. The Company also engages in margin lending to clients that allows the client to borrow against the value of qualifying securities and is included within Customer and other receivables in the consolidated statements of financial condition. Under these agreements and transactions, the Company receives 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 activities 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 ad ditional 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 lever age 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. Additi onally, 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 its credit exposure in the event of a 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 December 31, 2015 and December 31, 2014, the amounts related to margin lending were approximately $ 25.3 billion and $ 29.0 billion, respectively. Other secured financings include the liabilities related to transfers of financial assets that are accounted for as fi nancings 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 account ed for as Trading assets (see Notes 11 and 13). Cash and Securities Deposited with Clearing Organizations or Segregated. At December 31, 2015 At December 31, 2014 (dollars in millions) Cash deposited with clearing organizations or segregated under federal and other regulations or requirements(1) $ 31,469 $ 40,607 Securities(2) 14,390 14,630 Total $ 45,859 $ 55,237 _____________ In 2015, the Company made amendments to certain arrangements by which it acts in the capacity of a clearing member to clear derivatives on behalf of customers. These amendments resulted in approximately $ 3 . 8 billion related to cash initial margin received from customers and remitted to clearing organizations or third- party custodian banks no longer qualifying for recognition in the consolidated statements of financial condition. Securities deposited with clearing organizations or segregated under federal and other regulations or requirements are sourced from Securities purchased under agreements to resell and Trading assets in the consolidated statements of financial condition. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Financing Receivables and Allowance for Credit Losses | 7. Loans and Allowance for Credit Losses. Loans. The Company’s loan portfolio consists of the following: • Corporate . Corporate loans primarily include commercial and industrial lending used for general corporate purposes, working capital and liquidity, event-driven loans and asset-backed lending products. Event-driven loans support client merger, acquisition, recapitalization, or project finance activities. Corporate loans are structured as revolving lines of credit, letter of cred it facilities, term loans and bridge loans. Risk factors considered in determining the allowance for corporate loans include the borrower’s financial strength, seniority of the loan, collateral type, volatility of collateral value, debt cushion, covenants and counterparty type. • Consumer . Consumer loans include unsecured loans and securities-based lending that allows clients to borrow money against the value of qualifying securities for any suitable purpose other than purchasing, trading, or carrying securities or refinancing margin debt. The majority of consumer loans are structured as revolving lines of credit and letter of credit facilities and are primarily offered through the Company’s Portfolio Loan Account (“PLA”) and Liquidity Access Line (“LA L”) programs . The allowance methodology for unsecured loans considers the specific attributes of the loan as well as the borrower’s source of repayment. The allowance methodology for securities-based lending considers the collateral type underlying the loan ( e.g. , diversified securities, concentrated securities or restricted stock). • Residential Real Estate . Residential real estate loans mainly include non-conforming loans and home equity lines of credit. The allowance methodology for non-conforming r esidential mortgage loans considers several factors, including, but not limited to, loan-to-value ratio, FICO score, home price index and delinquency status. The methodology for home equity lines of credit considers credit limits and utilization rates in a ddition to the factors considered for non-conforming residential mortgages. • Wholesale Real Estate . Wholesale real estate loans include owner-occupied loans and income-producing loans. The principal risk factors for determining the allowance for wholesale real estate loans are the underlying collateral type, loan-to-value ratio and debt service ratio. Loans Held for Investment and Held for Sale. At December 31, 2015 At December 31, 2014 Loans by Product Type Loans Held for Investment Loans Held for Sale Total Loans(1)(2) Loans Held for Investment Loans Held for Sale Total Loans(1)(2) (dollars in millions) Corporate loans $ 23,554 $ 11,924 $ 35,478 $ 19,659 $ 8,200 $ 27,859 Consumer loans 21,528 — 21,528 16,576 — 16,576 Residential real estate loans 20,863 104 20,967 15,735 114 15,849 Wholesale real estate loans 6,839 1,172 8,011 5,298 1,144 6,442 Total loans, gross of allowance for loan losses 72,784 13,200 85,984 57,268 9,458 66,726 Allowance for loan losses (225) — (225) (149) — (149) Total loans, net of allowance for loan losses $ 72,559 $ 13,200 $ 85,759 $ 57,119 $ 9,458 $ 66,577 ______________ Amounts include loans that are made to non-U.S. borrowers of $ 9,789 million and $ 7 , 017 million at December 31, 2015 and December 31, 2014 , respectively. Loans at fixed interest rates and floating or adjustable interest rates were $ 8,471 million and $ 77,288 million, respectively, at December 31, 2015 and $ 6,663 million and $ 59,914 million, respectively, at December 31, 2014 . See Note 3 for further information regarding Loans and lending commitments held at fair value. Credit Quality. The Credit Risk Management Department evaluates new obligors before credit transactions are initially approved and at least annually thereafter for corporate and wholesale real estate loans. For corporate loans, credit evaluations typically invol ve 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 col lateral, if applicable. The Credit Risk Management Department also evaluates strategy, market position, industry dynamics, obligor’s management and other factors that could affect an obligor’s risk profile. For wholesale real estate loans, the credit evalu ation is focused on property and transaction metrics, including property type, loan-to-value ratio, occupancy levels, debt service ratio, prevailing capitalization rates, and market dynamics. For residential real estate and consumer loans, the initial cred it evaluation typically 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. The Company utilizes the following credit quality indicators, which are consistent with U.S. banking regulators’ definitions of criticized exposures, in its credit moni toring process for loans held for investment: • Pass . A credit exposure rated pass has a continued expectation of timely repayment, all obligations of the borrower are current, and the obligor complies with material terms and conditions of the lending agreement. • Special Mention . Extensions of cre dit that have potential weakness that deserve management’s close attention and, if left uncorrected, may, at some future date, result in the deterioration of the repayment prospects or collateral position. • Substandard . Obligor has a well-defined we akness that jeopardizes the repayment of the debt and has a high probability of payment default with the distinct possibility that the Company will sustain some loss if noted deficiencies are not corrected. • Doubtful . Inherent weakness in the exposu re makes the collection or repayment in full, based on existing facts, conditions and circumstances, highly improbable, and the amount of loss is uncertain. • Loss . Extensions of credit classified as loss are considered uncollectible and are charged off. Loans considered as doubtful or loss are considered impaired. Substandard loans are regularly reviewed for impairment. When a loan is impaired, the impairment is measured based on the present value of expected future cash flows discounted at the loa n’s effective interest rate or, as a practical expedient, the observable market price of the loan or the fair value of the collateral if the loan is collateral dependent. For further information, see Note 2. Credit Quality Indicators for Loans Held for Investment, Gross of Allowance for Loan Losses, by Product Type. At December 31, 2015 Corporate Consumer Residential Real Estate Wholesale Real Estate Total (dollars in millions) Pass $ 22,040 $ 21,528 $ 20,828 $ 6,839 $ 71,235 Special mention 300 — — — 300 Substandard 1,202 — 35 — 1,237 Doubtful 12 — — — 12 Loss — — — — — Total loans $ 23,554 $ 21,528 $ 20,863 $ 6,839 $ 72,784 At December 31, 2014 Corporate Consumer Residential Real Estate Wholesale Real Estate Total (dollars in millions) Pass $ 17,847 $ 16,576 $ 15,688 $ 5,298 $ 55,409 Special mention 1,683 — — — 1,683 Substandard 127 — 47 — 174 Doubtful 2 — — — 2 Loss — — — — — Total loans $ 19,659 $ 16,576 $ 15,735 $ 5,298 $ 57,268 Impaired and Past Due Loans Held for Investment. At December 31, 2015 At December 31, 2014 Loans by Product Type Corporate Residential Real Estate Total Corporate Residential Real Estate Total (dollars in millions) Impaired loans with allowance $ 39 $ — $ 39 $ — $ — $ — Impaired loans without allowance(1) 89 17 106 2 17 19 Impaired loans unpaid principal balance 130 19 149 2 17 19 Past due 90 days loans and on nonaccrual 1 21 22 2 25 27 (1) At December 31, 2015 and December 31, 2014 , no allowance was outstanding for these loans as the present value of the expected future cash flows (or, alternatively, the observable market price of the loan or the fair value of the collateral held) equaled or exceeded the carrying value. At December 31, 2015 At December 31, 2014 Loans by Region Americas EMEA Asia-Pacific Total Americas EMEA Asia-Pacific Total (dollars in millions) Impaired loans $ 108 $ 12 $ 25 $ 145 $ 19 $ — $ — $ 19 Past due 90 days loans and on nonaccrual 22 — — 22 27 — — 27 Allowance for loan losses 183 34 8 225 121 20 8 149 EMEA—Europe, Middle East and Africa. Troubled Debt Restructurings . At December 31, 2015 , the impaired loans and lending commitments within held for investment include TDRs of $ 44.0 million and $ 34.8 million, respectively, within corporate loans. The Company recorded an allowance of $ 5.1 million against these TDRs. These restructurings typically include modifications of interest rates, collateral requirements, other loan covenants, and payment extensions. At December 31, 2014 , TDRs were not sig nificant. Allowance for Credit Losses on Lending Activities. Corporate Consumer Residential Real Estate Wholesale Real Estate Total (dollars in millions) Allowance for Loan Losses. Balance at December 31, 2014 $ 118 $ 2 $ 8 $ 21 $ 149 Gross charge-offs — — (1) — (1) Gross recoveries 1 — — — 1 Net recoveries/(charge-offs) 1 — (1) — — Provision for loan losses 58 3 10 16 87 Other(1) (11) — — — (11) Balance at December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Allowance for Loan Losses by Impairment Methodology. Inherent $ 156 $ 5 $ 17 $ 37 $ 215 Specific 10 — — — 10 Total allowance for loan losses at December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Loans Evaluated by Impairment Methodology(2). Inherent $ 23,426 $ 21,528 $ 20,846 $ 6,839 $ 72,639 Specific 128 — 17 — 145 Total loans evaluated at December 31, 2015 $ 23,554 $ 21,528 $ 20,863 $ 6,839 $ 72,784 Allowance for Lending Commitments. Balance at December 31, 2014 $ 147 $ — $ — $ 2 $ 149 Provision for lending commitments 33 1 — 2 36 Balance at December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Allowance for Lending Commitments by Impairment Methodology. Inherent $ 173 $ 1 $ — $ 4 $ 178 Specific 7 — — — 7 Total allowance for lending commitments at December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Lending Commitments Evaluated by Impairment Methodology(2). Inherent $ 63,873 $ 4,856 $ 312 $ 381 $ 69,422 Specific 126 — — — 126 Total lending commitments evaluated at December 31, 2015 $ 63,999 $ 4,856 $ 312 $ 381 $ 69,548 Corporate Consumer Residential Real Estate Wholesale Real Estate Total (dollars in millions) Allowance for Loan Losses. Balance at December 31, 2013 $ 137 $ 1 $ 4 $ 14 $ 156 Gross charge-offs (3) — — (3) (6) Gross recoveries — — — 1 1 Net recoveries/(charge-offs) (3) — — (2) (5) Provision (release) for loan losses (13) 1 4 9 1 Other(1) (3) — — — (3) Balance at December 31, 2014 $ 118 $ 2 $ 8 $ 21 $ 149 Allowance for Loan Losses by Impairment Methodology. Inherent $ 118 $ 2 $ 8 $ 21 $ 149 Specific — — — — — Total allowance for loan losses at December 31, 2014 $ 118 $ 2 $ 8 $ 21 $ 149 Loans Evaluated by Impairment Methodology(2). Inherent $ 19,657 $ 16,576 $ 15,718 $ 5,298 $ 57,249 Specific 2 — 17 — 19 Total loan evaluated at December 31, 2014 $ 19,659 $ 16,576 $ 15,735 $ 5,298 $ 57,268 Allowance for Lending Commitments. Balance at December 31, 2013 $ 125 $ — $ — $ 2 $ 127 Provision for lending commitments 22 — — — 22 Balance at December 31, 2014 $ 147 $ — $ — $ 2 $ 149 Allowance for Lending Commitments by Impairment Methodology. Inherent $ 147 $ — $ — $ 2 $ 149 Specific — — — — — Total allowance for lending commitments at December 31, 2014 $ 147 $ — $ — $ 2 $ 149 Lending Commitments Evaluated by Impairment Methodology(2). Inherent $ 65,987 $ 3,484 $ 283 $ 367 $ 70,121 Specific 26 — — — 26 Total lending commitments evaluated at December 31, 2014 $ 66,013 $ 3,484 $ 283 $ 367 $ 70,147 _______________ (1) Amount includes the impact related to the transfer to loans held for sale and foreign currency translation adjustments. (2) Loan balances are gross of the allowance for loan losses, and lending commitments are gross of the allowance for lending commitments. 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 consolidated statements of financial condition. These loans are full recourse, generally require periodic payments and ha ve repayment terms ranging from 2 to 12 years. The Company establishes an allowance for loan amounts it does not consider recoverable, which is recorded in Compensation and benefits expense. At December 31, 2015 , the Company had $ 4,923 million of employe e loans, net of an allowance of approximately $ 108 million. At December 31, 2014 , the Company had $ 5,130 million of employee loans, net of an allowance of approximately $ 116 million. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures | |
Equity Method Investments | 8. Equity Method Investments. Overview. The Company has investments accounted for under the equity method of accounting (see Note 1) of $ 3,144 million and $ 3,332 million at December 31, 2015 and December 31, 2014 , respectively, included in Other investments in the consolidated statements of financial condition. Income from equity method investments was $114 million, $156 million and $451 million for 2015 , 2014 and 2013 , respectively, and is included in Other revenues in the consoli dated statements of income. Japanese Securities Joint Venture. The Company holds a 40 % voting interest (“40% interest”) and Mitsubishi UFJ Financial Group, Inc. (“MUFG”) holds a 60 % voting interest in Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“ MUMSS”) . The Company accounts for its equity method investment in MUMSS within the Institutional Securities business segment. During 2015 , 2014 and 2013 , the Company recorded income from its 40% interest of $ 220 million , $ 224 million and $ 570 million, r espectively, within Other revenues in the consolidated statements of income . At December 31, 2015 and December 31, 2014, the book value of this investment was $ 1,457 million and $ 1,415 million, respectively. The b ook value of this investee exceeds the Com pany’s share of net assets, reflecting equity method intangible assets and equity method goodwill. In addition to MUMSS, the Company held other equity method investments that were not individually significant . In 2015 and 2014 , MUMSS paid a dividend of approximately $ 424 million and $ 594 million, respectively, of which the Company received its proportionate share of approximately $ 170 million and $ 238 million. Summarized Financial Data for MUMSS. At December 31, 2015 2014 (dollars in millions) Total assets $ 135,398 $ 111,053 Total liabilities 132,492 108,263 Noncontrolling interests 29 37 2015 2014 2013 (dollars in millions) Net revenues $ 2,961 $ 2,961 $ 3,305 Income from continuing operations before income taxes 845 908 1,325 Net income 589 595 1,459 Net income applicable to MUMSS 565 582 1,441 |
Goodwill and Net Intangible Ass
Goodwill and Net Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Net Intangible Assets | |
Goodwill and Net Intangible Assets | 9. Goodwill and Net Intangible Assets. Goodwill . The Company completed its annual goodwill impairment testing on July 1, 2015 and July 1, 2014 . The Company’s impairm ent testing for each period 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. However, adverse market or economic events could result in impairment charges in future periods. Changes in Carrying Amount of Goodwill, Net of Accumulated Impairment Losses. Institutional Securities Wealth Management Investment Management Total (dollars in millions) Goodwill at December 31, 2013(1) $ 293 $ 5,533 $ 769 $ 6,595 Foreign currency translation adjustments and other (14) ─ ─ (14) Goodwill acquired during the period 7 ─ ─ 7 Goodwill at December 31, 2014(1) $ 286 $ 5,533 $ 769 $ 6,588 Foreign currency translation adjustments and other (15) ─ ─ (15) Goodwill acquired during the period 11 ─ ─ 11 Goodwill at December 31, 2015(1) $ 282 $ 5,533 $ 769 $ 6,584 _____________ (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 $ 7,284 million and $ 7,288 million at December 31, 2015 and December 31, 2014 , respectively. Net Intangible Assets . Changes in Carrying Amount of Net Intangible Assets. Institutional Securities Wealth Management Investment Management Total (dollars in millions) Amortizable net intangible assets at December 31, 2013 $ 56 $ 3,182 $ 40 $ 3,278 Mortgage servicing rights — 8 — 8 Net intangible assets at December 31, 2013 $ 56 $ 3,190 $ 40 $ 3,286 Amortizable net intangible assets at December 31, 2013 $ 56 $ 3,182 $ 40 $ 3,278 Disposal (4) — — (4) Intangible assets acquired during the period 182 — — 182 Amortization expense (13) (274) (10) (297) Impairment losses(1) — (3) (3) (6) Amortizable net intangible assets at December 31, 2014 221 2,905 27 3,153 Mortgage servicing rights — 6 — 6 Net intangible assets at December 31, 2014 $ 221 $ 2,911 $ 27 $ 3,159 Amortizable net intangible assets at December 31, 2014 $ 221 $ 2,905 $ 27 $ 3,153 Intangible assets acquired during the period(2) 160 — — 160 Amortization expense (26) (273) (7) (306) Other (28) — — (28) Amortizable net intangible assets at December 31, 2015 327 2,632 20 2,979 Mortgage servicing rights — 5 — 5 Net intangible assets at December 31, 2015 $ 327 $ 2,637 $ 20 $ 2,984 ____________ (1) Impairment losses are recorded within Other expenses in the consolidated statements of income. ( 2 ) I ncludes a $ 159 million net increase in Intangible assets related to a Commodities division transaction, which also resulted in a gain of $ 78 million recorded in Other revenues in the consolidated statements of income. Amortizable Intangible Assets. At December 31, 2015 At December 31, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (dollars in millions) Trademarks $ 1 $ — $ 7 $ 6 Tradename 280 31 280 21 Customer relationships 4,059 1,686 4,048 1,430 Management contracts 478 250 268 170 Other 291 163 374 197 Total amortizable intangible assets $ 5,109 $ 2,130 $ 4,977 $ 1,824 Amortization expense associated with intangible assets is estimated to be approximately $ 294 million per year over the next five years. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | 10. Deposits. Deposits . At December 31, 2015(1) At December 31, 2014(1) (dollars in millions) Savings and demand deposits $ 153,346 $ 132,159 Time deposits(2) 2,688 1,385 Total(3) $ 156,034 $ 133,544 (1 ) Total deposits subject to the FDIC insurance at December 31, 2015 and December 31, 2014 were $ 113 billion and $ 99 billion, respectively. Of the total time deposits subject to the FDIC insurance at December 31, 2015 and December 31, 2014, $ 14 million and $ 2 million, respectively, met or exceeded the FDIC insurance limit. (2) Certain time deposit accounts are carried at fair value under the fair value option (see Note 3). (3) The Company’s deposits were primarily held in the U.S. Intere st bearing deposits at December 31, 2015 included $ 153,338 million of savings deposits payable upon demand and $ 2,599 million of time deposits maturing in 2016, $ 59 million of time deposits maturing in 2017 and $ 9 million of time deposits maturing in 201 8. The vast majority of deposits in MSBNA and MSPBNA (collectively, “ U.S. Bank Subsidiaries”) are sourced from the Company’s retail brokerage accounts. Concurrent with the acquisition of the remaining 35 % stake in the purchase of the retail securities joi nt venture between the Company and Citigroup Inc. (“Citi”) (the “Wealth Management JV”) in 2013, the deposit sweep agreement between Citi and the Company was terminated . The transfer of deposits previously held by Citi to the Company’s depository instituti ons relating to the Company’s customer accounts was completed on June 30, 2015. During 2015 , $ 8.7 billion of deposits were transferred by Citi to the Company’s depository institutions. |
Borrowings and Other Secured Fi
Borrowings and Other Secured Financings | 12 Months Ended |
Dec. 31, 2015 | |
Borrowings and Other Secured Financings | |
Long-Term Borrowings and Other Secured Financings | 11. Borrowings and Other Secured Financings. Short-Term Borrowings . At December 31, 2015 and December 31, 2014, the Company had $ 2,173 million and $2,261 million, respectively, of Short-term borrowings, and the average balance was $ 2,187 million and $ 1,923 million, respectively. In 2015, the Company calculated its average balances based on daily amounts . I n 2014, the Company calculated its average balances based upon weekly amounts, except where weekly balances were u navailable, month-end balances were used. These borrowings included bank loans, bank notes and structured notes with original maturities of 12 months or less. Certain structured short-term borrowings are carried at fair value under the fair value option (s ee Note 3). Long-Term Borrowings. Maturities and Terms of Long-Term Borrowings. Parent Company Subsidiaries At At Fixed Variable Fixed Variable December 31, December 31, Rate Rate(1) Rate Rate(1) 2015(2)(3) 2014 (dollars in millions) Due in 2015 $ — $ — $ — $ — $ — $ 20,740 Due in 2016 9,883 8,227 24 4,262 22,396 20,643 Due in 2017 14,550 6,611 13 1,092 22,266 24,000 Due in 2018 13,118 3,981 15 823 17,937 17,679 Due in 2019 11,219 6,740 47 562 18,568 17,571 Due in 2020 11,289 4,713 14 989 17,005 8,190 Thereafter 45,173 8,586 308 1,529 55,596 43,949 Total $ 105,232 $ 38,858 $ 421 $ 9,257 $ 153,768 $ 152,772 Weighted average coupon at period-end(4) 4.5% 1.0% 6.1% N/M 4.0% 4.2% N/M—Not Meaningful. (1) Variable rate borrowings bear interest based on a variety of money market indices, including LIBOR and federal f unds rates. Amounts include borrowings that are equity-linked, credit-linked, co mmodity -linked or linked to some other index. ( 2 ) Amounts include an increase of approximately $ 2.7 billion at December 31, 2015 to the carrying amount of certain of the long-term borrowings associated with fair value hedges. The increase to the carrying value associated with fair value hedges by year due was approximately $ 0. 1 billion due in 201 6 , $ 0. 5 billion due in 201 7 , $ 0. 3 bil lion due in 201 8 , $ 0 . 5 billion due in 201 9 , $ 0.4 billion due in 2020 and $ 0.9 billion due thereafter. ( 3 ) Amounts include a de crease of approximately $ 0.5 billion at December 31, 2015 to the carrying amounts of certain of the long-term borrowings for which the fair value option was elected (see Note 3 ). ( 4 ) Weighted average coupon was calculated utilizing U.S. and non-U.S. dollar interest rates and excludes financial instruments for which the fair value option was e lected. Virtually all of the variable rate notes issued by subsidiaries are carried at fair value so a weighted average coupon is not meaningful. Components of Long-term Borrowings. At December 31, 2015 At December 31, 2014 (dollars in millions) Senior debt $ 140,494 $ 139,565 Subordinated debt 10,404 8,339 Junior subordinated debentures 2,870 4,868 Total $ 153,768 $ 152,772 During 2015 and 2014 , the Company issued notes with a principal amount of approximately $ 34.2 billion and $ 36.7 billion, respectively, and approximately $ 27.3 billion and $ 33.1 billion , respectively, in aggregate long-term borrowings matured or retired. Senior debt securities often are denominated in various non-U.S. dollar currencies and may be structured to provide a return that is equity-linked, credit-linked, commodity-linked or l inked to some other index ( e.g. , the consumer price index). Senior debt also may be structured to be callable by the Company or extendible at the option of holders of the senior debt securities. Debt containing provisions that effectively allow the holders to put or extend the notes aggregated $ 2,902 million at December 31, 2015 and $ 2,175 million at December 31, 2014 . In addition, in certain circumstances, certain purchasers may be entitled to cause the repurchase of the notes. The aggregated value o f notes subject to these arrangements was $ 650 million at December 31, 2015 and $ 551 million at December 31, 2014 . Subordinated debt and junior subordinated debentures generally are issued to meet the capital requirements of the Company or its regula ted subsidiaries and primarily are U.S. dollar denominated. During 2015, Morgan Stanley Capital Trusts VI and VII redeemed all of their issued and outstanding 6.60 % Capital Securities, respectively, and the Company concurrently redeemed the related under lying junior subordinated debentures. Senior Debt—Structured Borrowings. The Company’s index-linked, equity-linked or credit-linked borrowings include various structured instruments whose payments and redemption values are linked to the perform ance of a specific index ( e.g., Standard & Poor’s 500), a basket of stocks, a specific equity security, a credit exposure or basket of credit exposures. To minimize the exposure resulting from movements in the underlying index, equity, credit or other posi tion, the Company has entered into various swap contracts and purchased options that effectively convert the borrowing costs into floating rates based upon LIBOR. The Company generally carries the entire structured borrowings at fair value. The swaps and p urchased options used to economically hedge the embedded features are derivatives and also are carried at fair value. Changes in fair value related to the notes and economic hedges are reported in Trading revenues. See Note 3 for further information on structured borrowings. Subordinated Debt and Junior Subordinated Debentures. Included in the long-term borrowings are subordinated notes of $ 10 , 404 million having a contractual weighted average coupon of 4.45 % at December 31, 2015 and $ 8,339 million having a contractual weighted average coupon of 4. 57 % at December 31, 2014 . Junior subordinated debentures outstanding by the Company were $ 2 , 870 million at December 31, 2015 having a contractual weighted average coupon of 6.22 % at December 3 1, 2015 and $ 4,8 68 million at December 31, 2014 having a contractual weighted average coupon of 6.37 % at December 31, 2014 . Maturities of the subordinated and junior subordinated notes range from 2 0 22 to 2067 , while m aturities of certain junior su bordinated debentures can be extended to 2052 at the Company’s option. Asset and Liability Management. In general, securities inventories that are not financed by secured funding sources and the majority of the Company’s assets are financed with a combination of deposits, short-term funding, floating rate long-term debt or fixed rate long-term debt swapped to a floating rate. Fixed assets are generally financed with fixed rate long-term debt. The Company uses interest rate swaps to more closely matc h these borrowings to the duration, holding period and interest rate characteristics of the assets being funded and to manage interest rate risk. These swaps effectively convert certain of the Company’s fixed rate borrowings into floating rate obligations. In addition, for non-U.S. dollar currency borrowings that are not used to fund assets in the same currency, the Company has entered into currency swaps that effectively convert the borrowings into U.S. dollar obligations. The Company’s use of swaps for asset and liability management affected its effective average borrowing rate. Effective Average Borrowing Rate. 2015 2014 2013 Weighted average coupon of long-term borrowings at period-end(1) 4.0% 4.2% 4.4% Effective average borrowing rate for long-term borrowings after swaps at period-end(1) 2.1% 2.3% 2.2% (1) Included in the weighted average and effective average calculations are U.S. and non-U.S. dollar interest rates. Other. The Company, through several of its subsidiaries, maintains funded and unfunded committed credit facilities to support various businesses, including the collateralized commercial and residential mortgage whole loan, derivative contracts, warehouse lending, emerging market loan, structured product, corporate loan, investment banking and prime brokerage businesses. Other S ecured 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 commod ities, certain equity-linked notes and other secured borrowings. See Note 13 for further information on other secured financings related to VIEs and securitization activities. Other Secured F inancings. At December 31, 2015 At December 31, 2014 (dollars in millions) Secured financings with original maturities greater than one year $ 7,629 $ 10,346 Secured financings with original maturities one year or less(1) 1,435 1,395 Failed sales(2) 400 344 Total $ 9,464 $ 12,085 ___________ (1) Amounts include approximately $ 1,401 million of variable rate financings and approximately $ 34 million in fixed rate financings at December 31, 2015 and approximately $ 1,299 million of variable rate financings and approximately $ 96 million in fixed rate financings at December 31, 2014. (2) For more information on failed sales, see Note 13. Maturities and Terms of Secured Financings with Original Maturities Greater than One Year. At December 31, 2015 At December 31, 2014 Fixed Rate Variable Rate(1) Total (dollars in millions) Due in 2015 $ — $ — $ — $ 3,341 Due in 2016 — 2,333 2,333 4,705 Due in 2017 — 2,122 2,122 881 Due in 2018 — 1,553 1,553 786 Due in 2019 1 1,147 1,148 194 Due in 2020 58 84 142 56 Thereafter 84 247 331 383 Total $ 143 $ 7,486 $ 7,629 $ 10,346 Weighted average coupon rate at period-end(2) 3.9% 1.2% 1.2% 0.8% ___________ (1 ) Variable rate borrowings bear interest based on a variety of indices, including LIBOR. Amounts include borrowings that are equity-linked, credit-linked, commodity -linked or linked to some other index. ( 2 ) Weighted average coupon was calcu lated utilizing U.S. and non-U.S. dollar interest rates and excludes secured financings that are linked to non-interest indices and for which fair value option was elected. Maturities and Terms of Faile d Sales. At At December 31, December 31, 2015 2014 (dollars in millions) Due in 2015 $ — $ 32 Due in 2016 69 90 Due in 2017 168 148 Due in 2018 1 14 Due in 2019 54 10 Due in 2020 104 — Thereafter 4 50 Total $ 400 $ 344 For more information on failed sales , see Note 13 . |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments, Guarantees and Contingencies [Abstract] | |
Commitments, Guarantees and Contingencies | 12. Commitments, Guarantees and Contingencies. Commitments. The Company’s commitments are summarized below by years to maturity. Since commitments associated with these instruments may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. Commitments. Years to Maturity at December 31, 2015 Less than 1 1-3 3-5 Over 5 Total (dollars in millions) Letters of credit and other financial guarantees obtained to satisfy collateral requirements $ 172 $ 7 $ — $ 107 $ 286 Investment activities 544 78 36 398 1,056 Corporate lending commitments(1) 14,912 25,124 48,655 7,025 95,716 Consumer lending commitments 4,846 5 — 4 4,855 Residential real estate lending commitments 24 99 63 246 432 Wholesale real estate lending commitments 82 265 41 2 390 Forward-starting reverse repurchase agreements and securities borrowing agreements(2)(3) 33,485 — — — 33,485 Total $ 54,065 $ 25,578 $ 48,795 $ 7,782 $ 136,220 (1) Due to the nature of the Company’s obligations under the commitments, these amounts include certain commitments participated to third parties of $ 4.2 billion. ( 2 ) The Company enters into forward - starting reverse repurchase and securities borrowing agreements that primarily settle within three business days of the trade date, and of the total amount at December 31, 2015 , $ 25.6 billion settled within three business days. (3) 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 approxima tely $ 2.2 billion. Type of Commitments. Letters of Credit and Other Financial Guarantees Obtained to Satisfy Collateral Requirements . The Company has outstanding letters of credit and other financial guarantees issued by third-party banks to certain of the Company’s counterparties. The Company is contingently liable for these letters of credit and other financial guarantees, which are primarily used to provide collateral for securities and commodities borrowed and to satisfy various margin requirements in lieu of depositing cash or securities with these counterparties. Investment Activities . The Company enters into commitments associated with its real estate, private equity and principal investment activities, which include alter native products. Lending Commitments . Lending commitments represent the notional amount of legally binding obligations to provide funding to clients for different types of loan transactions. For syndications led by the Company, the lending commitments accepted by the borrower but not yet closed are net of the amounts agreed to by counterparties that will participate in the syndication. For syndications that the Company participates in and does not lead, lending commitments accepted by the borrower but not yet closed include only the amount that the Company expects it will be allocated from the lead, syndicate bank. Due to the nature of the Company’s obligations under the commitments, these amounts include certain commitments participated to third partie s. See Note 7 for further information. Forward - Starting Reverse Repurchase Agreements . T he Company has entered into forward-starting securities purchased under agreements to resell (agreements that have a trade date at or prior to December 31, 2015 and settle subsequent to period-end) that are primarily secured by collateral from U.S. government agency securities and other sovereign government obligations. The Company sponsors several non-consolidated investment funds for third-party investors where it 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 sub scribing 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 Comp any 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. Premises and Equipment . The Company has non-cancelable operating leases covering premises and equipment (excluding commodity operating leases, shown separately). At December 31, 2015 , future minimum rental commitments under such leases (net of subleases, principally on office rentals) were as follows: Operating Premises Leases. At December 31, 2015 (dollars in millions) 2016 $ 612 2017 642 2018 570 2019 485 2020 438 Thereafter 3,127 The total of minimum rental income to be received in the future under non-cancelable operating subleases at December 31, 2015 was $ 26 million. Occupancy lease agreements, in addition to base rentals, generally provide for rent and operating expense escalations resulting from increased assessments for real estate taxes and other charges. Total rent expense, net of sublease rental income, was $ 705 million, $ 715 million and $ 742 million for the years ended December 31, 2015 , 2014 and 2013 , resp ectively. Guarantees. Obligations U nder Guarantee Arrangements at December 31, 2015 . Maximum Potential Payout/Notional Years to Maturity Carrying Amount (Asset)/ Liability Collateral/ Recourse Less than 1 1-3 3-5 Over 5 Total (dollars in millions) Credit derivative contracts(1) $ 208,694 $ 298,030 $ 149,171 $ 33,624 $ 689,519 $ 785 $ — Other credit contracts 19 107 2 332 460 (24) — Non-credit derivative contracts(1) 1,103,014 760,769 321,557 567,755 2,753,095 61,401 — Standby letters of credit and other financial guarantees issued(2) 822 1,361 1,174 5,870 9,227 (175) 7,633 Market value guarantees 11 166 224 29 430 (3) 6 Liquidity facilities 3,079 — — — 3,079 (5) 4,875 Whole loan sales guarantees — — 1 23,451 23,452 9 — Securitization representations and warranties — — — 65,000 65,000 98 — General partner guarantees 25 41 87 467 620 29 — _____________ (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 4. (2) The se amounts include certain issued standby letters of credit participated to third parties totaling $ 0.7 billion due to the nature of the Company’s obligations under these arrangements. The Company has obligations under certain guarantee arrangements, inclu ding 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, secur ity 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 base d on another entity’s failure to perform under an agreement, as well as indirect guarantees of the indebtedness of others. Types of Guarantees. Derivative Contracts . Certain derivative contracts meet the accounting definition of a guarantee, including certain written options, contingent forward contracts and credit default swaps (see Note 4 regarding credit derivatives in which the Company has sold credit protection to the counterparty). Although the Company’s derivative arrangements do not specifically identify whether the derivative counterparty retains the underlying asset, liability or equity security, the Company has disclosed information regarding all derivative contracts that could meet the accounting de finition of a guarantee. The maximum potential payout for certain derivative contracts, such as written interest rate caps and written foreign currency options, cannot be estimated, as increases in interest or foreign exchange rates in the future could pos sibly be unlimited. Therefore, in order to provide information regarding the maximum potential amount of future payments that the Company could be required to make under certain derivative contracts, the notional amount of the contracts has been disclosed. In certain situations, collateral may be held by the Company for those contracts that meet the definition of a guarantee. Generally, the Company sets collateral requirements by counterparty so that the collateral covers various transactions and products a nd is not allocated specifically to individual contracts. Also, the Company may recover amounts related to the underlying asset delivered to the Company under the derivative contract. The Company records all derivative contracts at fair value. Aggregate market risk limits have been established, and market risk measures are routinely monitored against these limits. The Company also manages its exposure to these derivative contracts through a variety of risk mitigation strategies, including, but not limite d to, entering into offsetting economic hedge positions. The Company believes that the notional amounts of the derivative contracts generally overstate its exposure. Standby Letters of Credit and Other Financial Guarantees Issued . In connection with it s corporate lending business and other corporate activities, the Company provides standby letters of credit and other financial guarantees to counterparties. Such arrangements represent obligations to make payments to third parties if the counterparty fail s to fulfill its obligation under a borrowing arrangement or other contractual obligation. A majority of the Company’s standby letters of credit are provided on behalf of counterparties that are investment grade. Market Value Guarantees . Market value guarantees are issued to guarantee timely payment of a specified return to investors in certain affordable housing tax credit funds. These guarantees are designed to return an investor’s contribution to a fund and the investor’s share of tax losses and tax credits expected to be generated by a fund. From time to time, the Company may also guarantee return of principal invested, potentially including a specified rate of return, to fund investors. Liquidity Facilities . The Company has entered into liquidi ty facilities with special purpose entities (“SPEs”) and other counterparties, whereby the Company is required to make certain payments if losses or defaults occur. Primarily, the Company acts as liquidity provider to municipal bond securitization SPEs and for standalone municipal bonds in which the holders of beneficial interests issued by these SPEs or the holders of the individual bonds, respectively, have the right to tender their interests for purchase by the Company on specified dates at a specified p rice. The Company often may have recourse to the underlying assets held by the SPEs in the event payments are required under such liquidity facilities as well as make-whole or recourse provisions with the trust sponsors. Primarily all of the underlying ass ets in the SPEs are investment grade. Liquidity facilities provided to municipal tender option bond trusts are classified as derivatives. Whole Loan Sale Guarantees . The Company has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain whole loan sales. Under certain circumstances, the Company may be required to repurchase such assets or make other payments related to such assets if such representations and warranties are breached. The Company’s maximum p otential payout related to such representations and warranties is equal to the current unpaid principal balance (“UPB”) of such loans. The Company has information on the current UPB only when it services the loans. The amount included in the above table fo r the maximum potential payout of $ 23.5 billion includes the current UPB where known of $ 4.5 billion and the UPB at the time of sale of $ 18.9 billion when the current UPB is not known. The UPB at the time of the sale of all loans covered by these represent ations and warranties was approximately $ 42.7 billion. The related liability primarily relates to sales of loans to the federal mortgage agencies. Securitization Representations and Warranties . As part of the Company’s Institutional Securities busin ess 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. The exten t and nature of the representations and warranties, if any, vary among different securitizations. Under certain circumstances, the Company may be required to repurchase such assets or make other payments related to such assets if such representations and w arranties are breached. The maximum potential amount of future payments the Company could be required to make would be equal to the current outstanding balances of, or losses associated with, the assets subject to breaches of such representations and warra nties. The amount included in the above table for the maximum potential payout includes the current UPB where known and the UPB at the time of sale when the current UPB is not known. Between 2004 and 2015, the Company sponsored approximately $ 148.0 bill ion of RMBS primarily containing U.S. residential loans that were outstanding at December 31, 2015 . Of that amount, the Company made representations and warranties relating to approximately $ 47.0 billion of loans and agreed to be responsible for the repr esentations and warranties made by third-party sellers, many of which are now insolvent, on approximately $ 21.0 billion of loans. At December 31, 2015 , the Company had recorded $ 101 million in its consolidated financial statements for payments owed as a result of breach of representations and warranties made in connection with these residential mortgages. At December 31, 2015 , the current UPB for all the residential assets subject to such representations and warranties was approximately $ 13.5 billion, a nd the cumulative losses associated with U.S. RMBS were approximately $ 14.7 billion. The Company did not make, or otherwise agree to be responsible for, the representations and warranties made by third-party sellers on approximately $ 79.9 billion of reside ntial loans that it securitized during that time period. The Company also made representations and warranties in connection with its role as an originator of certain commercial mortgage loans that it securitized in CMBS. Between 2004 and 2015, the Compa ny originated approximately $ 67.6 billion and $ 7.2 billion of U.S. and non-U.S. commercial mortgage loans, respectively, that were placed into CMBS sponsored by the Company that were outstanding at December 31, 2015 . At December 31, 2015 , the Company h ad not accrued any amounts in the consolidated financial statements for payments owed as a result of breach of representations and warranties made in connection with these commercial mortgages. At December 31, 2015 , the current UPB for all U.S. commercia l mortgage loans subject to such representations and warranties was $ 35.0 billion. For the non-U.S. commercial mortgage loans, the amount included in the above table for the maximum potential payout includes the current UPB when known of $ 1.3 billion and t he UPB at the time of sale when the current UPB is not known of $ 0.4 billion. General Partner Guarantees . As a general partner in certain private equity and real estate partnerships, the Company receives certain distributions from the partnerships rela ted to achieving certain return hurdles according to the provisions of the partnership agreements. The Company, from time to time, may be required to return all or a portion of such distributions to the limited partners in the event the limited partners do not achieve a certain return as specified in the various partnership agreements, subject to certain limitations. 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 t o 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 offe r date to its closing date and, therefore, are generally short term in nature. The Company believes the likelihood of any payment by the Company under these arrangements is remote given the level of its due diligence associated with its role as investment banking advisor. Other Guarantees and Indemnities. In the normal course of business, the Company provides guarantees and indemnifications in a variety of transactions. These provisions generally are standard contractual terms. Certain of these guarantee s and indemnifications related to trust preferred securities, indemnities, and exchange/clearinghouse member guarantees 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 such proceeds to the Company in exchange for junior subordinated debentures. The Morgan Stanley Capital Trusts are SPEs, and only the Parent provides a guarantee for the trust preferred se curities. The Company has directly guaranteed the repayment of the trust preferred securities to the holders in accordance with the terms thereof. See Note 11 for details on the Company’s junior subordinated debentures. • Indemnities. The Company p rovides 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, a 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 Guarante es. 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 obligations under these rules would arise only i f the exchange or clearinghouse had previously exhausted its resources. In addition, some clearinghouse rules require members to assume a proportionate share of losses resulting from the clearinghouse’s investment of guarantee fund contributions and initia l margin, and of other losses unrelated to the default of a clearing member, if such losses exceed the specified resources allocated for such purpose by the clearinghouse. The maximum potential payout under these rules cannot be estimated. The Company has not recorded any contingent liability in its consolidated financial statements for these agreements and believes that any potential requirement to make payments under these agreements is remote. 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 a re required by investors or trading counterparties. The activities of the Company’s subsidiaries covered by these guarantees (including any related debt or trading obligations) are included in the 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 diversifie d 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 (both formal and informal) by governmental and self-regulatory agencies 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 a nd, 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 n ot yet been asserted or are not yet determined to be probable or possible and reasonably estimable losses. 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 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 incurred legal expenses o f $ 563 million in 2015, $ 3,364 million in 2014 and $ 1,941 million in 2013. The Company’s future legal expenses may fluctuate from period to period, given the current environment regarding government investigations and private litigation affecting global fi nancial services firms, including the Company. In many proceedings and investigations, 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 a 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 and investigations, the Company cannot reasonably estimate such losses, particularly for proceedings and investigations where the factual record is being developed or contested or where plaintiffs or governmental entities seek substantial or in determinate damages, restitution, disgorgement or penalties. 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 or other relief, and by addressing novel or unsettled legal questions relevant to the proceedings or investigations in question, before a loss or additional loss or range of loss or additional range of loss can be reasonably est imated for a proceeding or investigation. For certain other legal proceedings and investigations, the Company can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but does no t believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on the Company’s consolidated financial statements as a whole, other than the matters referred to in the following paragraphs. 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 Yo rk 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, 201 1, the court denied the Company’s motion to dismiss the complaint. Based on currently available information, the Company believes it could incur a loss in this action of up to approximately $240 million plus pre- and post-judgment interest, fees and costs. On August 7, 2012, U.S. Bank, in its capacity as trustee, filed a complaint on behalf of Morgan Stanley Mortgage Loan Trust 2006-4SL and Mortgage Pass-Through Certificates, Series 2006-4SL against the Company. The matter is styled Morgan Stanley Mortgage Loan Trust 2006-4SL, et al. v. Morgan Stanley Mortgage Capital Inc. and is pending in the Supreme Court of NY. The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trusts, which had an original princip al balance of approximately $303 million, breached various representations and warranties. The complaint seeks, among other relief, rescission of the mortgage loan purchase agreement underlying the transaction, specific performance and unspecified damages and interest. On August 8, 2014, the court granted in part and denied in part the Company’s motion to dismiss. Based on currently available information, the Company believes that it could incur a loss in this action of up to approximately $149 million, the total original unpaid balance of the mortgage loans for which the Company received repurchase demands that it did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On August 8, 2012, U.S. Bank, in its capacity as trustee, filed a complaint on behalf of Morgan Stanley Mortgage Loan Trust 2006-14SL, Mortgage Pass-Through Certificates, Series 2006-14SL, Morgan Stanley Mortgage Lo an Trust 2007-4SL and Mortgage Pass-Through Certificates, Series 2007-4SL against the Company styled Morgan Stanley Mortgage Loan Trust 2006-14SL, et al. v. Morgan Stanley Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage C apital Inc ., pending in the Supreme Court of NY. The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trusts, which had original principal balances of approximately $354 million and $305 million respect ively, breached various representations and warranties. The complaint seeks, among other relief, rescission of the mortgage loan purchase agreements underlying the transactions, specific performance and unspecified damages and interest. On August 16, 2013, the court granted in part and denied in part the Company’s motion to dismiss the complaint. Based on currently available information, the Company believes that it could incur a loss in this action of up to approximately $527 million, the total original un paid balance of the mortgage loans for which the Company received repurchase demands that it did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On September 28, 2012, U.S. Bank, in its capacity as trustee, filed a complaint on behalf of Morgan Stanley Mortgage Loan Trust 2006-13ARX against the Company styled Morgan Stanley Mortgage Loan Trust 2006-13ARX v. Morgan Stanley Mor tgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc., pending in the Supreme Court of NY. The plaintiff filed an amended complaint on January 17, 2013, which asserts claims for breach of contract and alleges, among o ther things, that the loans in the trust, which had an original principal balance of approximately $609 million, breached various representations and warranties. The amended complaint seeks, among other relief, declaratory judgment relief, specific perform ance and unspecified damages and interest. By order dated September 30, 2014, the court granted in part and denied in part the Company’s motion to dismiss the amended complaint. On July 13, 2015, the plaintiff perfected its appeal from the court’s Septemb er 30, 2014 decision. Based on currently available information, the Company believes that it could incur a loss in this action of up to approximately $170 million, the total original unpaid balance of the mortgage loans for which the Company received repur chase demands that it did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On January 10, 2013, U.S. Bank, in its capacity as trustee, filed a complaint on behalf of Morgan Stanley Mortgage Loan Trust 2006-10SL and Mortgage Pass-Through Certificates, Series 2006-10SL against the Company styled Morgan Stanley Mortgage Loan Trust 2006-10SL, et al. v. Morgan Stanley Mortgage Capi tal Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc. , pending in the Supreme Court of NY. The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original principal balance of approximately $300 million, breached various representations and warranties. The complaint seeks, among other relief, an order requiring the Company to comply with the loan breach remedy procedures in the transaction documents, unspeci fied damages, and interest. On August 8, 2014, the court granted in part and denied in part the Company’s motion to dismiss the complaint. Based on currently available information, the Company believes that it could incur a loss in this action of up to app roximately $197 million, the total original unpaid balance of the mortgage loans for which the Company received repurchase demands that it did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the numb er of loans at issue and the possible range of loss could increase. On May 3, 2013, plaintiffs in Deutsche Zentral-Genossenschaftsbank AG et al. v. Morgan Stanley et al. filed a complaint against the Company, certain affiliates, and other defendants in th e Supreme Court of NY. The complaint alleges that defendants made material misrepresentations and omissions in the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The t otal amount of certificates allegedly sponsored, underwritten and/or sold by the Company to plaintiff currently at issue in this action was approximately $644 million. The complaint alleges causes of action against the Company for common law fraud, fraudul ent concealment, aiding and abetting fraud, negligent misrepresentation, and rescission and seeks, among other things, compensatory and punitive damages. On June 10, 2014, the court granted in part and denied in part the Company’s motion to dismiss the com plaint. The Company perfected its appeal from that decision on June 12, 2015. At December 25, 2015, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $269 million, and the certificates had incu rred actual losses of approximately $8 |
Variable Interest Entities and
Variable Interest Entities and Securitization Activities | 12 Months Ended |
Dec. 31, 2015 | |
Securitization Activities and Variable Interest Entities [Abstract] | |
Variable Interest Entity Disclosures | 13. Variable Interest Entities and Securitization Activities. Overview . The Company is involved with various SPEs in the normal course of business. In most cases, these entities are deemed to be VIEs. 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 Inv estment securities 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. • Loans made to and investments in VIEs that hold debt, equity, real estate or other assets. • Derivatives entered into with VIEs. • Structuring of CLNs or other asset-repackaged not es 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 determi nation 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 pa rties. 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 e conomic 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 ser vicer 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 an d 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 mana ger 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, suc h 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 transac tion 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 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 decis ion 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. Consolidated VIEs. Except for consolidated VIEs include d 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 in Other secured financings in its consolida ted 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 its consolidated stateme nts 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 its consolidated statements of financial condition. Except for consolida ted 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 no t 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 either has the unilateral right to remove assets or provide additional recourse through derivatives such as total return swaps, guarantees or other forms of involvement. As part of the Institutional Securities business segment’s securitization and related activities, the Company has provided, or otherwise agreed to be responsible fo r, representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Company (see Note 12 ). Consolidated VIE Assets and Liabilities . Consolidated VIE assets and liabilities are presented after interc ompany eliminations and include assets financed on a non-recourse basis: At December 31, 2015 At December 31, 2014 VIE Assets VIE Liabilities VIE Assets VIE Liabilities (dollars in millions) Mortgage- and asset-backed securitizations $ 375 $ 234 $ 563 $ 337 Managed real estate partnerships(1) 38 1 288 4 Other structured financings 787 13 928 80 Credit-linked notes and Other 1,400 189 1,199 — _________ During 2015 and 2014 , the Company deconsolidated approximately $ 191 million and $1.6 billion, respectively, in net assets previously attributable to nonredeemable noncontrolling interests that were primarily related to or associated with real estate fund s sponsored by the Company. 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 o f the VIE’s liabilities. At December 31, 2015 and December 31, 2014 , managed real estate partnerships reflected nonredeemable noncontrol ling interests in the c onsoli dated financial statements of $ 37 million and $ 240 million, respect ively. The Company also had additional maximum exposure to losses of approximately $ 72 million and $ 105 million at December 31, 2015 and December 31, 2014 , respectively , primarily related to certain derivatives, commitments , guarantees and other forms of involvement . Non- c onsolidated VIEs. T he tables below 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 i s the result of its secondary market-making activities and securities held in its Investment securities portfolio (see Note 5): At December 31, 2015 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) $ 126,872 $ 8,805 $ 4,654 $ 2,201 $ 20,775 Maximum exposure to loss: Debt and equity interests(2) $ 13,361 $ 1,259 $ 1 $ 1,129 $ 3,854 Derivative and other contracts — — 2,834 — 67 Commitments, guarantees and other 494 231 — 361 222 Total maximum exposure to loss $ 13,855 $ 1,490 $ 2,835 $ 1,490 $ 4,143 Carrying value of exposure to loss—Assets: Debt and equity interests(2) $ 13,361 $ 1,259 $ 1 $ 685 $ 3,854 Derivative and other contracts — — 5 — 13 Total carrying value of exposure to loss—Assets $ 13,361 $ 1,259 $ 6 $ 685 $ 3,867 Carrying value of exposure to loss—Liabilities: Derivative and other contracts $ — $ — $ — $ — $ 15 Commitments, guarantees and other — — — 3 — Total carrying value of exposure to loss—Liabilities $ — $ — $ — $ 3 $ 15 At December 31, 2014 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)(3) $ 174,548 $ 26,567 $ 3,449 $ 2,040 $ 19,237 Maximum exposure to loss: Debt and equity interests(4) $ 15,028 $ 3,062 $ 13 $ 1,158 $ 3,884 Derivative and other contracts 15 2 2,212 — 164 Commitments, guarantees and other 1,054 432 — 617 429 Total maximum exposure to loss $ 16,097 $ 3,496 $ 2,225 $ 1,775 $ 4,477 Carrying value of exposure to loss—Assets: Debt and equity interests(4) $ 15,028 $ 3,062 $ 13 $ 741 $ 3,884 Derivative and other contracts 15 2 4 — 74 Total carrying value of exposure to loss—Assets $ 15,043 $ 3,064 $ 17 $ 741 $ 3,958 Carrying value of exposure to loss—Liabilities: Derivative and other contracts $ — $ — $ — $ — $ 57 Commitments, guarantees and other — — — 5 — Total carrying value of exposure to loss—Liabilities $ — $ — $ — $ 5 $ 57 (1) Mortgage- and asset-backed securitizations include VIE assets as follows: $ 13.8 billion of residential mortgages; $ 57.3 billion of commercial mortgages; $ 13.2 billion of U.S. agency collateralized mortgage obligations; and $ 42.5 billion of other consumer or commercial loans. (2) Mortgage- and asset-backed se curitizations include VIE debt and equity interests as follows: $ 1.0 billion of residential mortgages; $ 2.9 billion of commercial mortgages; $ 2.8 billion of U.S. agency collateralized mortgage obligations; and $ 6.7 billion of other consumer or commercial loans. (3) Mortgage- and asset-backed securit izations include VIE assets as follows: $ 30.8 billion of residential mortgages; $ 71.9 billion of commercial mortgages; $ 20.6 billion of U.S. agency collateralized mortgage obligations; and $ 51.2 billion of other consumer or commercial loans. (4) Mortgage - and asset-backed securitizations include VIE debt and equity interests as follows: $ 1.9 billion of residential mortgages; $ 2.4 billion of commercial mortgages; $ 4.0 billion of U.S. agency collateralized mortgage obligations; and $ 6.8 billion of other con sumer 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 V IEs 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 write-downs 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 its variable interests. In addition, the Company’s maximum exposure to loss is not reduced by the amount of colla teral 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 $ 12.9 billion and $14.0 billion at December 31, 2015 and December 31, 2014 , respectively. These securities were either retained in connection with transfers of assets by the Company, acquired in connection with secondary market-making activities or held as AFS securities in its Investment securities portfolio (see Note 5). At December 31, 2015 and December 31, 2014 , these securities consisted of securities backed by residenti al mortgage loans, commercial mortgage loans or other consumer loans, such as credit card receivables, automobile loans and student loans, and CDOs or CLOs. The Company’s primary risk exposure is to the securities issued by the SPE owned by the Company, wi th the risk highest on the most subordinate class of beneficial interests. These securities generally are included in Trading assets—Corporate and other debt or AFS securities within its Investment securities portfolio and are measured at fair value (see N ote 3). T he 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 n otes, 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 th e 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 d erivatives in which the Company has purchased protection in synthetic CDOs). Such activities are further described below. Securitization Activities. In a securitization transaction, the Company transfers assets (generally commercial or residential mortgage loans or U.S. agency securities) to an SPE, sells to investors most of the beneficial interests, such as notes or certificates, issued by the SPE, and, in many cases, retains other beneficial interests. In many securitization transactions involvin g commercial mortgage loans, the Company transfers a portion of the assets to the SPE with unrelated parties transferring the remaining assets. The purchase of the transferred assets by the SPE is financed through the sale of these interests. In some of these transactions, primarily involving residential mortgage loans in the U.S., the Company serves as servicer for some or all of the transferred loans. In many securitizations, particularly involving residential mortgage loans, the Company also enters in to derivative transactions, primarily interest rate swaps or interest rate caps, with the SPE. Although not obligated, the Company generally makes a market in the securities issued by SPEs in these transactions. As a market maker, the Company offers to buy these securities from, and sell these securities to, investors. Securities purchased through these market-making activities are not considered to be retained interests, although these beneficial interests generally are included in Trading assets—Corpor ate and other debt and are measured at fair value. The Company enters into derivatives, generally interest rate swaps and interest rate caps, with a senior payment priority in many securitization transactions. The risks associated with these and similar derivatives with SPEs are essentially the same as similar derivatives with non-SPE counterparties and are managed as part of the Company’s overall exposure. See Note 4 for further information on derivative instruments and hedging activities. Avail able for Sale Securities . In the AFS securities within the Investment securities portfolio, the Company holds securities issued by VIEs not sponsored by the Company. These securities include government guaranteed securities issued in transactions spon sored by the federal mortgage agencies and the most senior securities issued by VIEs in which the securities are backed by student loans, automobile loans, commercial mortgage loans or CLOs (see Note 5). Municipal Tender Option Bond Trusts. In a mu nicipal tender option bond transaction, the Company, generally on behalf of a client, transfers a municipal bond to a trust. The trust issues short-term securities that the Company, as the remarketing agent, sells to investors. The client retains a residua l interest. The short-term securities are supported by a liquidity facility pursuant to which the investors may put their short-term interests. In some programs, the Company provides this liquidity facility; in most programs, a third-party provider will pr ovide such liquidity facility. The Company may purchase short-term securities in its role either as remarketing agent or as liquidity provider. The client can generally terminate the transaction at any time. The liquidity provider can generally terminate t he transaction upon the occurrence of certain events. When the transaction is terminated, the municipal bond is generally sold or returned to the client. Any losses suffered by the liquidity provider upon the sale of the bond are the responsibility of the client. This obligation generally is collateralized. Liquidity facilities provided to municipal tender option bond trusts are classified as derivatives. The Company consolidates any municipal tender option bond trusts in which it holds the residual interes t. Credit Protection Purchased through CLNs. In a CLN transaction, the Company transfers assets (generally high-quality securities or money market investments) to an SPE, enters into a derivative transaction in which the SPE writes protection on an unrelated reference asset or group of assets, throug h a credit default swap, a total return swap or similar instrument, and sells to investors the securities issued by the SPE. In some transactions, the Company may also enter into interest rate or currency swaps with the SPE. Upon the occurrence of a credit event related to the reference asset, the SPE will deliver collateral securities as payment to the Company. The Company is generally exposed to price changes on the collateral securities in the event of a credit event and subsequent sale. These transa ctions are designed to provide investors with exposure to certain credit risk on the reference asset. In some transactions, the assets and liabilities of the SPE are recognized in the Company’s consolidated statements of financial condition. In other trans actions, the transfer of the collateral securities is accounted for as a sale of assets, and the SPE is not consolidated. The structure of the transaction determines the accounting treatment. The derivatives in CLN transactions consist of total return swaps, credit default swaps or similar contracts in which the Company has purchased protection on a reference asset or group of assets. Payments by the SPE are collateralized. The risks associated with these and similar derivatives with SPEs are essentiall y the same as similar derivatives with non-SPE counterparties and are managed as part of the Company’s overall exposure. Other Structured Financings. The Company primarily invests in equity interests issued by entities that develop and own low-inco me communities (including low-income housing projects) and entities that construct and own facilities that will generate energy from renewable resources. The equity interests entitle the Company to its share of tax credits and tax losses generated by these projects. In addition, the Company has issued guarantees to investors in certain low-income housing funds. The guarantees are designed to return an investor’s contribution to a fund and the investor’s share of tax losses and tax credits expected to be gen erated by the fund. The Company is also involved with entities designed to provide tax-efficient yields to the Company or its clients. Collateralized Loan and Debt Obligations. A CLO or a CDO is an SPE that purchases a pool of assets, consisting of corporate loans, corporate bonds, asset-backed securities or synthetic exposures on similar assets through derivatives, and issues multiple tranches of debt and equity securities to investors. The Company underwrites the securities issued in CLO transactio ns on behalf of unaffiliated sponsors and provides advisory services to these unaffiliated sponsors. The Company sells corporate loans to many of these SPEs, in some cases representing a significant portion of the total assets purchased. If necessary, the Company may retain unsold securities issued in these transactions. Although not obligated, the Company generally makes a market in the securities issued by SPEs in these transactions. These beneficial interests are included in Trading assets and are measur ed at fair value. Equity-Linked Notes. In an equity-linked note (“ELN”) transaction, the Company typically transfers to an SPE either (1) a note issued by the Company, the payments on which are linked to the performance of a specific equity securit y, equity index, or other index or (2) debt securities issued by other companies and a derivative contract, the terms of which will relate to the performance of a specific equity security, equity index or other index. These transactions are designed to pro vide investors with exposure to certain risks related to the specific equity security, equity index or other index. ELN transactions with SPEs were not consolidated at December 31, 2015 and at December 31, 2014 . Managed Real Estate Partnerships. The Company sponsors funds that invest in real estate assets. Certain of these funds are classified as VIEs, primarily because the Company has provided financial support through lending facilities and other means. The Company also serves as the general p artner for these funds and owns limited partnership interests in them. These funds were consolidated at December 31, 2015 and December 31, 2014 . Transfers of Assets with Continuing Involvement . Transactions with SPEs in which the Company, acting a s principal, transferred financial assets with continuing involvement and received sales treatment are shown below. At December 31, 2015 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other(1) (dollars in millions) SPE assets (unpaid principal balance)(2) $ 22,440 $ 72,760 $ 17,978 $ 12,235 Retained interests (fair value): Investment grade $ — $ 238 $ 649 $ — Non-investment grade 160 63 — 1,136 Total retained interests (fair value) $ 160 $ 301 $ 649 $ 1,136 Interests purchased in the secondary market (fair value): Investment grade $ — $ 88 $ 99 $ — Non-investment grade 60 63 — 10 Total interests purchased in the secondary market (fair value) $ 60 $ 151 $ 99 $ 10 Derivative assets (fair value) $ — $ 343 $ — $ 151 Derivative liabilities (fair value) — — — 449 At December 31, 2014 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other(1) (dollars in millions) SPE assets (unpaid principal balance)(2) $ 26,549 $ 58,660 $ 20,826 $ 24,011 Retained interests (fair value): Investment grade $ 10 $ 117 $ 1,019 $ 57 Non-investment grade 98 120 — 1,264 Total retained interests (fair value) $ 108 $ 237 $ 1,019 $ 1,321 Interests purchased in the secondary market (fair value): Investment grade $ 32 $ 129 $ 61 $ 423 Non-investment grade 32 72 — 59 Total interests purchased in the secondary market (fair value) $ 64 $ 201 $ 61 $ 482 Derivative assets (fair value) $ — $ 495 $ — $ 138 Derivative liabilities (fair value) — — — 86 _____________ (1) Amounts i nclude CLO transactions managed by unrelated third parties. ( 2 ) Amounts include assets transferred by unrelated transferors. At December 31, 2015 Level 1 Level 2 Level 3 Total (dollars in millions) Retained interests (fair value): Investment grade $ — $ 886 $ 1 $ 887 Non-investment grade — 17 1,342 1,359 Total retained interests (fair value) $ — $ 903 $ 1,343 $ 2,246 Interests purchased in the secondary market (fair value): Investment grade $ — $ 187 $ — $ 187 Non-investment grade — 112 21 133 Total interests purchased in the secondary market (fair value) $ — $ 299 $ 21 $ 320 Derivative assets (fair value) $ — $ 466 $ 28 $ 494 Derivative liabilities (fair value) — 110 339 449 At December 31, 2014 Level 1 Level 2 Level 3 Total (dollars in millions) Retained interests (fair value): Investment grade $ — $ 1,166 $ 37 $ 1,203 Non-investment grade — 123 1,359 1,482 Total retained interests (fair value) $ — $ 1,289 $ 1,396 $ 2,685 Interests purchased in the secondary market (fair value): Investment grade $ — $ 644 $ 1 $ 645 Non-investment grade — 129 34 163 Total interests purchased in the secondary market (fair value) $ — $ 773 $ 35 $ 808 Derivative assets (fair value) $ — $ 559 $ 74 $ 633 Derivative liabilities (fair value) — 82 4 86 Transferred assets are carried at fair value prior to securitization, and any changes in fair value are recognized in the consolidated statements of income. The Company may act as underwriter of the beneficial interests issued by these 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 consolidated statements of financial condition at fair value. Any changes in the fair value of such retained interests are recognized in the consolidated statements of income. Net gains on sale of assets in securitization t ransactions at the time of the sale were not material in 2015 , 2014 and 2013. Proceeds f rom New Securitization Transactions and Retained Interests in Securitization Transactions . 2015 2014 2013 (dollars in millions) Proceeds received from new securitization transactions $ 21,243 $ 20,553 $ 24,889 Proceeds from retained interests in securitization transactions 3,062 3,041 4,614 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 ). Proceeds from Sale s to CLO Entities Sponsored by Non-Affiliates . 2015 2014 2013 (dollars in millions) Proceeds from sale of corporate loans sold to those SPEs $ 1,110 $ 2,388 $ 2,347 Net gains on sale of corporate loans to CLO transactions at the time of sale were not material in 2015 , 2014 and 2013. The Company also enters into transactions in which it sells equity securities and contemporaneously enters into bilateral OTC equity derivatives with the purchasers of the securities, through which it retains the exposure to the securities. For transactions where the derivatives were outstanding at December 31, 2015, the carrying value o f assets derecognized at the time of sale and the gross cash proceeds were $ 7.9 billion. In addition, the fair value at December 31, 2015 of the assets sold w as $ 7.9 billion , while the fair value of derivative assets and derivative liabilities recognized in the co nsolidated statement s of financial condition at December 31, 2015 was $ 97.0 million and $ 39.8 million, respectively (see Note 4 ). Failed Sales. For transfers that fail to meet the accounting criteria for a sale, the Company continues to recognize the assets in Trading assets at fair value, and the Company recognizes the associated liabilities in Other secured financings at fair value in the consolidated statements of financial condition (see Note 11 ). The assets transferred to uncons olidated 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 are also non-recourse to the Company. In certain other failed sale transaction s, the Company has the right to remove assets or provide additional recourse through derivatives such as total return swaps, guarantees or other forms of involvement. Carrying Value of Assets and Liabilities Related to Failed Sales . At December 31, 2015 At December 31, 2014 Carrying Value of: Carrying Value of: Assets Liabilities Assets Liabilities (dollars in millions) Failed sales $ 400 $ 400 $ 352 $ 344 |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Requirements | |
Regulatory Requirements | 14. Regulatory Requirements. Regulatory Capital Framework . 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 Board of Governors of the Federal Reserve System (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 (“OCC”) establishes similar capital requirements and standards for the Company’s U.S. Bank Subsidiaries. The U.S. banking regulators have comprehensively revised their risk-based and leverage capital framework to implement many aspects of the Basel III capital standards established by the Basel Committee on Banking Supervision (the “Basel Committee”) . The U.S. banking regulators’ revised capital framework is referred to herein as “U.S. Basel III.” The Company and its U.S. Bank Subsidiaries became subject to U.S. Basel III on January 1, 2014. Calculation of Risk-Based Capital Ratios. The Company is required to calculate and hold capital against cred it, market and operational risk- weighted assets (“RWAs”). RWAs reflect both on- and off-balance sheet risk of the Company. Credit risk RWAs reflect capital charges attributable to the risk of loss arising from a borrower , counterparty or issuer failing to meet its financial obligations. Market risk RWAs reflect capital charges attributable to the risk of loss resulting from adverse changes in market prices and other factors. Operational risk RWAs reflect capital charges attributable to the risk of loss resulting from inadequate or failed processes, people and systems or from external events ( e.g. , fraud ; theft ; legal , regulatory and compliance risks ; or damage to physical assets). The Company may incur operational risks across the full scope of its business activities, including revenue-generating activities ( e.g. , sales and trading) and support and control groups ( e.g. , information technology a nd trade processing). In addition, given the evolving regulatory and litigation environment across the financial services industry and the fact that operational risk RWAs incorporate the impact of such related matters, operational risk RWAs may increase in future p eriods. On February 21, 2014, the Federal Reserve and the OCC approved the Company’s and its U.S. Bank Subsidiaries’ respective use of the U.S. Basel III advanced internal ratings-based approach for determining credit risk capital requirements and advance d measurement approaches for determining operational risk capital requirements to calculate and publicly disclose their risk-based capital ratios beginning with the second quarter of 2014, subject to the “capital floor” discussed below (the “Advanced Appro ach”) . As a U.S. Basel III Advanced Approach banking organization, the Company is required to compute risk-based capital ratios calculated using both (i) standardized approaches for calculating credit risk RWAs and market risk RWAs (the “Standardized Appro ach”); and (ii) an advanced internal ratings-based approach for calculating credit risk RWAs, an advanced measurement approach for calculating operational risk RWAs, and an advanced approach for calculating market risk RWAs under U.S. Basel III. To imple ment a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act, U.S. Basel III subjects Advanced Approach banking organizations that have been approved by their regulators to exit the parallel run, such as the Company, to a permanent “ca pital floor.” Beginning on January 1, 2015, as a result of the capital floor, the Company’s binding risk-based capital ratios for regulatory purposes are the lower of the capital ratios computed under the Advanced Approach or the Standardized Approach unde r U.S. Basel III. The U.S. Basel III Standardized Approach modifies certain U.S. Basel I-based methods for calculating RWAs and prescribes new standardized risk weights for certain types of assets and exposures. In 2014, the Company’s binding risk-based ca pital ratios for regulatory purposes were the lower of the capital ratios computed under the Advanced Approach under U.S. Basel III or U.S. banking regulators’ U.S. Basel I-based rules (“U.S. Basel I”) as supplemented by rules that implemented the Basel Co mmittee’s market risk capital framework amendment, commonly referred to as “Basel 2.5”. The capital floor applies to the calculation of the minimum risk-based capital requirements, the capital conservation buffer, the countercyclical capital buffer (if dep loyed by banking regulators), and the global systemically important bank capital surcharge. The methods for calculating each of the Company’s risk-based capital ratios will change through January 1, 2022 as aspects of U.S. Basel III are phased in. These ongoing methodological changes may result in differences in the Company’s reported capital ratios from one reporting period to the next that are independent of changes to its capital base, asset composition, off-balance sheet exposures or risk profile. The Company’s Regulatory Capital and Capital Ratios. At December 31, 2015 , the Company’s risk-based capital ratios were lower under the Advanced Approach transitional rules; however, the risk-based capital ratios for its U.S. Bank Subsidiaries were lo wer under the Standardized Approach transitional rules. Capital Mea sures and Minimum Regulatory Capital Ratios. At December 31, 2015 At December 31, 2014 Amount Ratio Minimum Regulatory Capital Ratio(1) Amount Ratio Minimum Regulatory Capital Ratio(1) (dollars in millions) Regulatory capital and capital ratios: Common Equity Tier 1 capital $ 59,409 15.5% 4.5% $ 57,324 12.6% 4.0% Tier 1 capital 66,722 17.4% 6.0% 64,182 14.1% 5.5% Total capital 79,403 20.7% 8.0% 74,972 16.4% 8.0% Tier 1 leverage(2) — 8.3% 4.0% — 7.9% 4.0% Assets: Total RWAs $ 384,162 N/A N/A $ 456,008 N/A N/A Adjusted average assets(3) 803,574 N/A N/A 810,524 N/A N/A __________ N/A—Not Applicable. (1) Percentages represent minimum regulatory capital ratios under U.S. Basel III transitional rules. (2) Tier 1 leverage ratios are calculated under U.S. Basel III Standardized Approach transitional rules. (3) Beginning with the first quarter of 2015, in accordance with U.S. Basel III, adjusted average assets represent the denominator of the Tier 1 leverage ratio and are composed of the average daily balance of consolidated on-balance sheet assets under U.S. GAAP during the calendar quarter, adjusted for disallowed goodwill, transitional intangible assets, certain deferred tax assets, certain investments in the capital instruments of unconsolidated financial institutions and other adjustments. The Company’s U.S. Bank Subsi diaries . The Company’s U.S. Bank Subsidiaries are subject to similar regulatory capital requirements as the Company. 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 Subsidiaries ’ financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, each of the Company’s U.S. Bank Subsidiaries must meet specifi c capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Regulatory Capital and Capital Ratios for the Company’s U.S. Bank Subsidiaries. Morgan Stanley Bank, N.A. At December 31, 2015 At December 31, 2014 U.S. Basel III Transitional/ Standardized Approach Required Capital Ratio(1) U.S. Basel III Transitional/ Basel I + Basel 2.5 Approach Required Capital Ratio(1) Amount Ratio Amount Ratio (dollars in millions) Common Equity Tier 1 capital $ 13,333 15.1% 6.5% $ 12,355 12.2% 6.5% Tier 1 capital 13,333 15.1% 8.0% 12,355 12.2% 8.0% Total capital 15,097 17.1% 10.0% 14,040 13.9% 10.0% Tier 1 leverage 13,333 10.2% 5.0% 12,355 10.2% 5.0% Morgan Stanley Private Bank, National Association At December 31, 2015 At December 31, 2014 U.S. Basel III Transitional/ Standardized Approach Required Capital Ratio(1) U.S. Basel III Transitional/ Basel I + Basel 2.5 Approach Required Capital Ratio(1) Amount Ratio Amount Ratio (dollars in millions) Common Equity Tier 1 capital $ 4,197 26.5% 6.5% $ 2,468 20.3% 6.5% Tier 1 capital 4,197 26.5% 8.0% 2,468 20.3% 8.0% Total capital 4,225 26.7% 10.0% 2,480 20.4% 10.0% Tier 1 leverage 4,197 10.5% 5.0% 2,468 9.4% 5.0% _______ (1) Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. Under regulatory capital requirements a dopted by the U.S. federal banking agencies, U.S. depository institutions, in order to be considered well-capitalized, must maintain certain minimum capital ratios. Each U.S. depository institution subsidiary of the Company must be well-capitalized in orde r 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 December 31, 2015 and December 31, 2014 , the Company’s U.S. B ank Subsidiaries maintained capital at levels sufficiently in excess of the universally mandated well-capitalized requirements to address any additional capital needs and requirements identified by the U.S. federal banking regulators. MS&Co . and Other Bro ker-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 (“SEC”) and the U.S. Commod ity Futures Tra ding Commission (“CFTC”). MS&Co . has consistently operated with capital in excess of its regulatory capital requirements. MS&Co .’s net capital totaled $ 10,254 million and $ 6,593 million at December 31, 2015 and December 31, 2014 , respectively, which e xceeded the amount required by $ 8,458 million and $ 4,928 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 Ap pendix E of SEC Rule 15c3-1. In addition, MS&Co . is required to notify the SEC in the event that its tentative net capital is less than $ 5 billion. At December 31, 2015 and December 31, 2014 , MS&Co . had tentative net capital in excess of the minimum a nd the notification requirements. MSSB LLC is a registered broker- dealer and introducing broker for the futures business and, accordingly, is subject to the minimum net capital requirements of the SEC and the CFTC . MSSB LLC has consistently operated with capital in excess of its regulatory capital requirements. MSSB LLC’s net capital totaled $ 3,613 million and $ 4,620 million at December 31, 2015 and December 31, 2014 , respectively, which exceeded the amount required by $ 3,459 million and $ 4,460 milli on, respectively. 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 Ser vices 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 of the Company are subject to various secur ities, 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. The regulatory capital requirements referred to above, and certain covenants contained in various agreements governing indebtedness of the Company, may restrict the Company’s ability to withdraw capital from its subsidiaries. At December 31, 2015 and December 31, 2014 , approximately $ 28.6 billion and $ 31.8 billion, respectively, of net assets of consolidated subsidiaries may be restricted as to the payment of cash dividends and advances to the parent company. |
Total Equity
Total Equity | 12 Months Ended |
Dec. 31, 2015 | |
Redeemable Noncontrolling Interests and Total Equity | |
Total Equity | 15. Total Equity Morgan Stanley Shareholders’ Equity. Common Stock. Changes in Shares of Common Stock Outstanding . 2015 2014 (in millions) Shares outstanding at beginning of period 1,951 1,945 Treasury stock purchases(1) (78) (46) Other(2) 47 52 Shares outstanding at end of period 1,920 1,951 ____________ (1 ) Treasury stock purchases include repurchases of common stock for employee tax withholding. (2) Other includes net shares issued to and forfeited from Employee stock trusts and issued for RSU conversions. Dividends and Share Repurchases . In March 2015 , the Company received no objection from the Federal Reserve to its 2015 c apital plan. The capital plan include d a share repurchase of up to $ 3. 1 billion of the Company’s outstanding common stock during the period that began April 1, 2015 through June 30, 2016. Additionally, the capital plan included an increase in the quarterl y common stock dividend to $0.15 per share from $0.10 per share that began with the dividend declared on April 20, 2015. The cash dividends declared on the Company’s outstanding preferred stock were $ 452 million, $ 311 million and $ 271 million in 2015, 2014 and 2013, respectively. During 2015 and 2014 , the Company repurchased approximately $ 2,125 million and $ 900 million, respectively, of its outstanding common s tock as part of its share repurchase program. Pursuant to the share repurchase program, the Company considers, among other things, business segment capital needs as well as stock-based compensation and benefit plan requirements. Share repurchases under t he program will be exercised from time to time 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 privat ely negotiated transactions, including through Rule 10b5-1 plans, and may be suspended at any time. Share repurchases by the Company are subject to regulatory approval. Employee Stock Trusts. The Company has established Employee stock t rusts to provide common stock voting rights to certain employees who hold outstanding RSUs. The assets of the Employee stock t rusts are consolidated with those of the Company, and the value of the stock held in the Employee stock t rusts is classified in Morgan Stan ley shareholders’ equity and generally accounted for in a manner similar to treasury stock. Preferred Stock. The Company is authorized to issue 30 million shares of preferred stock. The preferred stock has a preference over the common stock upon liquidation. Preferred Stock Outstanding . Carrying Value Shares Outstanding Liquidation At At At December 31, Preference December 31, December 31, Series 2015 per Share 2015 2014 (shares in millions) (dollars in millions) A 44,000 $ 25,000 $ 1,100 $ 1,100 C(1) 519,882 1,000 408 408 E 34,500 25,000 862 862 F 34,000 25,000 850 850 G 20,000 25,000 500 500 H 52,000 25,000 1,300 1,300 I 40,000 25,000 1,000 1,000 J 60,000 25,000 1,500 — Total $ 7,520 $ 6,020 ____________ (1 ) Series C is compri sed of the issuance of 1,160,791 shares of Series C Preferred Stock to MUFG for an aggregate purchase price of $ 911 million, less the redemption of 640,909 shares of Series C Preferred Stock of $ 5 03 million, which were converted to common shares of approximately $ 705 million. The Company’s preferred stock qualifies as Tier 1 capital in accordance with regulatory capital requirements (see Note 14 ). Preferred Stock Issuance Description . Series Issuance Date Preferred Stock Issuance Description Redemption Price per Share(1) Redeemable on or after Date Dividend per Share(2) A(3) July 2006 44,000,000 Depositary Shares, each representing a 1/1,000th of a share of Floating Rate Non-Cumulative Preferred Stock, $0.01 par value $25,000 July 15, 2011 $255.56 C(3)(4) October 13, 2008 10% Perpetual Non-Cumulative Non-Voting Preferred Stock 1,100 October 15, 2011 25.00 E(5) September 30, 2013 34,500,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 October 15, 2023 445.31 F(5) December 10, 2013 34,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 January 15, 2024 429.69 G(5) April 29, 2014 20,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual 6.625% Non-Cumulative Preferred Stock, $0.01 par value 25,000 July 15, 2019 414.06 H(5)(6) April 29, 2014 1,300,000 Depositary Shares, each representing a 1/25th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 July 15, 2019 681.25 I(5) September 18, 2014 40,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 October 15, 2024 398.44 J(5)(7) March 19, 2015 1,500,000 Depositary Shares, each representing a 1/25th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 July 15, 2020 693.75 ____________ (1) The redemption price per share for Series A, E, F, G and I is equivalent to $25.00 per Depositary Share. The redemption price per share for Series H and J is equiv alent to $1,000 per Depositary Share. (2) Quarterly (unless noted otherwise) dividend declared in December 2015 that was paid on January 15, 2016 to preferred shareholders of record on December 31, 2015. (3) The preferred stock is redeemable at the Company's option, in whole or in part, on or after the redemption date. ( 4 ) Dividends on the Series C preferred stock are payable, on a non-cumulative basis, as and if declared by the Company’s Board of Directors, in cash, at the rate of 10 % per annum of the liquidation preference of $1,000 per share. (5 ) The preferred stock i s redeemable at the Company’s option ( i ) in whole or in part, from time to time, on any dividend payment date on or after the redemption da te or (ii) in whole but not in part at any time within 90 days following a regulatory capital treatment event (as de scribed in the terms of that series). (6 ) Dividend on Series H preferred stock is payable semi annually until July 15, 2019 and quarterly thereafter. (7 ) Dividend on Series J preferred stock is payable semi annually until July 15, 2020 and quarterly th ereafter. In addition to the redemption price per share, the redemption price includes any declared and unpaid dividends up to, but excluding, the date fixed for redempti on, without accumulation of any undeclared dividends. Accumulated Other Comprehensiv e Income (Loss). Changes in AOCI by Component, Net of Noncontrolling Interests. Foreign Currency Translation Adjustments Change in Net Unrealized Gains (Losses) on AFS Securities Pensions, Postretirement and Other Total (dollars in millions) Balance at December 31, 2014 $ (663) $ (73) $ (512) $ (1,248) Other comprehensive income (loss) before reclassifications (300) (193) 132 (361) Amounts reclassified from AOCI — (53) 6 (47) Net other comprehensive income (loss) during the period (300) (246) 138 (408) Balance at December 31, 2015 $ (963) $ (319) $ (374) $ (1,656) Foreign Currency Translation Adjustments Change in Net Unrealized Gains (Losses) on AFS Securities Pensions, Postretirement and Other Total (dollars in millions) Balance at December 31, 2013 $ (266) $ (282) $ (545) $ (1,093) Other comprehensive income (loss) before reclassifications (397) 233 24 (140) Amounts reclassified from AOCI — (24) 9 (15) Net other comprehensive income (loss) during the period (397) 209 33 (155) Balance at December 31, 2014 $ (663) $ (73) $ (512) $ (1,248) Foreign Currency Translation Adjustments Change in Net Unrealized Gains (Losses) on AFS Securities Pensions, Postretirement and Other Total (dollars in millions) Balance at December 31, 2012 $ (123) $ 151 $ (544) $ (516) Other comprehensive income (loss) before reclassifications (143) (406) (16) (565) Amounts reclassified from AOCI — (27) 15 (12) Net other comprehensive income (loss) during the period (143) (433) (1) (577) Balance at December 31, 2013 $ (266) $ (282) $ (545) $ (1,093) The Company had no significant reclassifications out of AOCI for 2015 , 2014 and 2013 . Cumulative Foreign Currency Translation Adjustments. Cumulative foreign currency translation adjustments include gains or losses resulting from translating foreign currency financial statements from their respective functional currencies to U.S. dollars, net of hedge gains or losses and related tax effects. The Company uses foreign currency contracts to manage the currency exposure relating to its net investments in non-U.S. dollar functional currency subsidiaries. Increases or decreases in the va lue of net foreign investments generally are tax deferred for U.S. purposes, but the related hedge gains and losses are taxable currently. The Company may elect not to hedge its net investments in certain foreign operations due to market conditions or othe r reasons, including the availability of various currency contracts at acceptable costs. Information at December 31, 2015 and December 31, 2014 relating to the effects on cumulative foreign currency translation adjustments that resulted from the translation of foreign currency financial statements and from gains and losses from hedges of the Company’s net investments in non-U.S. dollar functional currency subsidiaries is summarized in the table below. Effects on Cumulative Foreign Currency Translation Adjustments . At At December 31, December 31, 2015 2014 (dollars in millions) Net investments in non-U.S. dollar functional currency subsidiaries subject to hedges $ 8,170 $ 9,110 Cumulative foreign currency translation adjustments resulting from net investments in subsidiaries with a non-U.S. dollar functional currency $ (1,996) $ (1,262) Cumulative foreign currency translation adjustments resulting from realized or unrealized losses on hedges, net of tax 1,033 599 Total cumulative foreign currency translation adjustments, net of tax $ (963) $ (663) Nonredeemable Noncontrolling Interests. Nonredeemable noncontrolling interests were $ 1,002 million and $ 1,204 million at December 31, 2015 and December 31, 2014 , respectively. The reduction in nonredeemable noncontrolling interests was primarily due to the deconsolidation of certain legal entities associated with a real estate fund sponsored by the Company in the second quarter of 2015. Wealth Management JV . In June 2013, the Company purchased the remaining 35 % stake in the Wealth Management JV 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 remaining 35% interest in the Wealth Management JV and its carrying value. This adjustment negatively impacted the calculation of basic and diluted EPS in 2013 (see Note 16). Additionally, in conjunction with the purchase of the r emaining 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. Subsequent to Ju ne 2013, no results were attributed to Citi since the Company owned 100% of the Wealth Management JV. Prior to June 2013, Citi’s results related to its 35% interest were reported in net income (loss) applicable to redeemable noncontrolling interests in the consolidated statement s of income. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 16. Earnings per Common Share. Calculation of Basic and D iluted EPS . 2015 2014 2013 (in millions, except for per share data) Basic EPS: Income from continuing operations $ 6,295 $ 3,681 $ 3,656 Income (loss) from discontinued operations (16) (14) (43) Net income 6,279 3,667 3,613 Net income applicable to redeemable noncontrolling interests — — 222 Net income applicable to nonredeemable noncontrolling interests 152 200 459 Net income applicable to Morgan Stanley 6,127 3,467 2,932 Less: Preferred dividends (452) (311) (120) Less: Wealth Management JV redemption value adjustment — — (151) Less: Allocation of (earnings) loss to participating RSUs(1) (4) (4) (6) Earnings applicable to Morgan Stanley common shareholders $ 5,671 $ 3,152 $ 2,655 Weighted average common shares outstanding 1,909 1,924 1,906 Earnings per basic common share: Income from continuing operations $ 2.98 $ 1.65 $ 1.42 Income (loss) from discontinued operations (0.01) (0.01) (0.03) Earnings per basic common share $ 2.97 $ 1.64 $ 1.39 Diluted EPS: Earnings applicable to Morgan Stanley common shareholders $ 5,671 $ 3,152 $ 2,655 Weighted average common shares outstanding 1,909 1,924 1,906 Effect of dilutive securities: Stock options and RSUs(1) 44 47 51 Weighted average common shares outstanding and common stock equivalents 1,953 1,971 1,957 Earnings per diluted common share: Income from continuing operations $ 2.91 $ 1.61 $ 1.38 Income (loss) from discontinued operations (0.01) (0.01) (0.02) Earnings per diluted common share $ 2.90 $ 1.60 $ 1.36 _____________ (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. Securities that were considered antidilutive were excluded from the computation of diluted EPS. Outstanding Antidilutive Securities at Period-E nd . 2015 2014 2013 (shares in millions) Stock options 11 13 33 RSUs and performance-based stock units 1 2 3 Total 12 15 36 |
Interest Income and Interest Ex
Interest Income and Interest Expense | 12 Months Ended |
Dec. 31, 2015 | |
Interest Income And Interest Expense | |
Interest Income And Interest Expense | 17. Interest Income and Interest Expense. Interest I ncome and Interest Expense . 2015 2014 2013 (dollars in millions) Interest income(1): Trading assets(2) $ 2,262 $ 2,109 $ 2,292 Investment securities 876 613 447 Loans 2,163 1,690 1,121 Interest bearing deposits with banks 108 109 129 Securities purchased under agreements to resell and Securities borrowed(3) (560) (298) (20) Customer receivables and Other(4) 986 1,190 1,240 Total interest income $ 5,835 $ 5,413 $ 5,209 Interest expense(1): Deposits $ 78 $ 106 $ 159 Short-term borrowings 16 4 20 Long-term borrowings 3,481 3,609 3,758 Securities sold under agreements to repurchase and Securities loaned(5) 1,024 1,216 1,469 Customer payables and Other(6) (1,857) (1,257) (975) Total interest expense $ 2,742 $ 3,678 $ 4,431 Net interest $ 3,093 $ 1,735 $ 778 _____________ (1) Interest income and expense are recorded within the 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. (3) Includes fees paid on Securities borrowed. (4) Includes interest from customer receivables and other interest earning assets. (5) Includes fees received on Securities loaned. (6) Includes fees received from prime brokerage custom ers for stock loan transactions incurred to cover customers’ short positions. |
Deferred Compensation Plans
Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Compensation Arrangements [Abstract] | |
Deferred Compensation Plans | 18 . Deferred Compensation Plans. The Company maintains various deferred compensation plans for the benefit of certain current and former employees. The two principal forms of deferred compensation are granted under several stock-based compensation and cash-based compensation plans. Stock-Based Compensation Plans. Stock- B ased Compensation Expense. The components of the Company’s stock-based compensation expense (net of cancellations) are presented below: 2015 2014 2013 (dollars in millions) Restricted stock units(1) $ 1,080 $ 1,212 $ 1,140 Stock options (3) 5 15 Performance-based stock units 26 45 29 Total $ 1,103 $ 1,262 $ 1,184 (1) Amounts for 2015, 2014 and 2013 include $ 68 million, $ 31 million and $ 25 million, respectively, related to stock-based awards that were granted in 2016, 2015 and 2014, respectively, to employees who satisfied retirement-eligible requirements under award terms that do not contain a service period. The tax benefit related to stock-based compensation expense was $ 369 million, $ 404 million and $ 371 million for 2015, 2014 and 2013, respectively. At December 31, 2015, the Company had $ 720 mill ion of unrecognized compensation cost related to unvested stock-based awards . Absent estimated or actual forfeitures or cancellations , this amount of unrecognized compensation cost will be recognized as $ 448 million in 2016, $ 228 million in 2017 and $ 44 mi llion thereafter. These amounts do not include 2015 performance year awards granted in January 2016, which wi ll begin to be amortized in 2016 (see “2015 Performance Year Deferred Compensation Awards” herein) . In connection with awards under its stock-base d compensation plans, the Company is authorized to issue shares of its common stock held in treasury or newly issued shares. At December 31, 2015, approximately 96 million shares were available for future grants under these plans. The Company generally uses treasury shares, if available, to deliver shares to employees and has an ongoing repurchase authorization that includes repurchases in connection with awards granted under its stock-based compensation plans. Share repurchases by the Company are subjec t to regulatory approval. See Note 15 for additional information on the Company’s share repurchase program. Restricted Stock Units. RSUs are generally subject to vesting over time, generally one to three years from the date of grant, contingent upon continued employment and to restrictions on sale, transfer or assignment until conversion to common stock. All or a portion of an award may be canceled if employment is terminated before the end of the relevant vesting period, and after the relevant vesting period in certain situations. Recipients of RSUs may have voting rights, at the Company’s discretion, and generally receive dividend equivalents. Vested and Unvested RSU Activity. 2015 Number of Shares Weighted Average Grant Date Fair Value (shares in millions) RSUs at beginning of period 121 $ 25.52 Granted 34 34.76 Conversions to common stock (47) 23.57 Canceled (3) 28.72 RSUs at end of period(1) 105 29.26 (1) At December 31, 2015, approximately 98 million RSUs with a weighted average grant date fair value of $ 29.17 were vested or expected to vest. The weighted average grant date fair value for RSUs granted during 2014 and 2013 was $ 32.58 and $ 22.72 , respectively. At December 31, 2015, the weighted average remaining term until delivery for the Company’s outstanding RSUs was approximately 1.1 years. At December 31, 2015, the intrinsic value of RSUs vested or expected to vest was $ 3,144 million. The total intrinsi c value of RSUs converted to common stock during 2015, 2014 and 2013 was $ 1,646 million, $ 1,461 million and $ 939 million, respectively. Unvested RSU Activity . 2015 Number of Shares Weighted Average Grant Date Fair Value (shares in millions) Unvested RSUs at beginning of period 87 $ 26.44 Granted 34 34.76 Vested (48) 27.06 Canceled (3) 28.72 Unvested RSUs at end of period(1) 70 29.91 (1) Unvested RSUs represent awards where recipients have yet to satisfy either the explicit vesting terms or retirement-eligible requirements. At December 31, 2015, approximately 63 million unvested RSUs with a weighted average grant date fair value of $ 29.84 were expected to vest. The aggregate fair value o f awards that vested during 2015, 2014 and 2013 was $ 1,693 million, $ 1,517 million and $ 842 million, respectively. Stock Options. Stock options generally have an exercise price not less than the fair value of the Company’s common stock on the date of grant, vest and become exercisable over a three-year period and expire five to 10 years from the date of grant, subject to accelerated expiration upon certain terminations of employment. Stock opt ions have vesting, restriction and cancellation provisions that are generally similar to those of RSUs. The weighted average fair value of the Company’s stock options granted during 2013 was $ 5.41 , utilizing the following weighted average assumptions. Wei ghted Average Assumptions. Grant Year Risk-Free Interest Rate Expected Life Expected Stock Price Volatility Expected Dividend Yield 2013 0.6% 3.9 years 32.0% 0.9% No stock options were granted during 2015 or 2014. The Company’s expected option life has been determined based upon historical experience. The expected stock price volatility assumption was determined using the implied volatility of exchange-traded options, in accordance with accounting guidance for share-based payments. The risk-free interest rate was determined based on the yields available on U.S. Treasury zero-coupon issues. Stock Option Activity . 2015 Number of Options Weighted Average Exercise Price (options in millions) Options outstanding at beginning of period 19 $ 51.30 Expired (2) 45.32 Options outstanding at end of period(1) 17 52.26 Options exercisable at end of period 15 55.02 (1) At December 31, 2015, approximately 16 million options with a weighted average exercise price of $ 52.43 were vested. The aggregate intrinsic value of stock options exercised in 2015 and 2014 was $ 2 million per year, with a weighted average exercise price of $ 30.01 and $ 24.68 for 2015 and 2014, respectively. No stock options were exercised during 2013. At December 31, 2015, the intrinsic value of in the money exercisable stock options was $ 28 million. Stock Options Outstanding and Exercisable. At December 31, 2015 Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Exercise Price Average Remaining Life (Years) Number Exercisable Weighted Average Exercise Price Average Remaining Life (Years) (options in millions) $22.00 - $39.99 6 $ 26.85 2.0 4 $ 28.13 2.0 $50.00 - $59.99 1 52.43 0.3 1 52.43 0.3 $60.00 - $76.99 10 66.75 0.9 10 66.75 0.9 Total 17 15 Performance-Based Stock Units. PSUs will vest and convert to shares of common stock at the end of the performance period only if the Company satisfies predetermined performance and market-based conditions over the three-year performance period that began on January 1 of the grant year and ends three years later on December 31. Under the terms of the award, the number of PSUs that will actually vest and convert to shares will be based on the extent to which the Company achieves the specified performance goals during the pe rformance period. PSUs have vesting, restriction and cancellation provisions that are generally similar to those of RSUs. One-half of the award will be earned based on the Company’s average return on equity, excluding the impact of the fluctuation in its credit spreads and other credit factors for certain of its long-term and short-term borrowings, primarily structured notes, that are accounted for at fair value, certain gains or losses associated with the sale of specified businesses, specified goodwill i mpairments, certain gains or losses associated with specified legal settlements related to business activities conducted prior to January 1, 2011 and specified cumulative catch-up adjustments resulting from changes in an existing, or application of a new, accounting principle that is not applied on a fully retrospective basis (“MS Average ROE”). The number of PSUs ultimately earned for this portion of the awards will be determined by applying a multiplier within the following ranges : Minimum Maximum Grant Year MS Average ROE Multiplier MS Average ROE Multiplier 2015 Less than 5% 0.0 11.5% or more 1.5 2014 Less than 5% 0.0 11.5% or more 1.5 2013 Less than 5% 0.0 13% or more 2.0 On the date of award, t he fair value per share of th is portion was $ 34.58 , $ 32 . 81 and $ 22.85 for 2015, 2014 and 2013, respectively. One-half of the award will be earned based on the Company’s total shareholder return, relative to the total shareholder return of the S&P 500 Financial Sector s Index (“Relative TSR”). The number of PSUs ultimately earned for this portion of the award will be determined by applying a multiplier within the following ranges : Minimum Maximum Grant Year Relative TSR Multiplier Relative TSR Multiplier 2015 Less than -50% 0.0 25% or more 1.5 2014 Less than -50% 0.0 25% or more 1.5 2013 Less than -50% 0.0 50% or more 2.0 On the date of award, t he fair value per share of this portion was $ 38.07 , $ 37 . 72 and $ 34.65 for 201 5, 2014 and 2013 , respectively, estimated using a Monte Carlo simulation and the follo wing assumptions : Grant Year Risk-Free Interest Rate Expected Stock Price Volatility Expected Dividend Yield 2015 0.9% 29.6% 0.0% 2014 0.8% 44.2% 0.0% 2013 0.4% 45.4% 0.0% The risk-free interest rate was determined based on the yields available on U.S. Treasury zero-coupon issues. The expected stock price volatility was determined using historical volatility. The expected dividend yield was based on historical dividend payments. A correlation coefficient was developed based on historic al price data of the Company and the S&P 500 Financial Sectors Index. PSU Activity . 2015 Number of Shares (in millions) PSUs at beginning of period 4 Awarded 2 Conversions to common stock (2) PSUs at end of period 4 Deferred Cash-Based Compensation Plans . Deferred cash-based compensation plans generally provide a return to the plan participants based upon the performance of various referenced investments. The Company often invests directly, as a principal, in investments or other financial instruments to economically hedge its obligations under its deferred cash-based compensation plans. Changes in value of such investments made by the Company are recorded in Trading revenues and Investments revenues. Deferred Compensation Expense. The components of the Company’s d eferred compensation expense (net of cancellations) are presented below: 2015 2014 2013 (dollars in millions) Deferred cash-based awards(1) $ 660 $ 1,757 $ 1,490 Return on referenced investments 112 408 772 Total $ 772 $ 2,165 $ 2,262 _______________ (1) Amounts for 2015, 2014 and 2013 include $ 144 million, $ 92 million and $ 78 million, respectively, related to deferred cash-based awards that were granted in 2016, 2015 and 2014 , respectively, to employees who satisfied retirement -eligible requirements under award terms that do not contain a service period. At December 31, 2015 , the Company had approximately $ 541 million of unrecognized compensation cost related to unvested deferred cash-based awards (excluding unrecognized expens e for returns on referenced investments ) . Absent actual cancellations and any future return on referenced investments, this amount of unrecognized compensation cost will be recognized as $ 291 million in 2016, $ 103 million in 2017 and $ 147 million thereafte r. These amounts do not include 2015 performance yea r awards granted in January 2016, which will begin to be amortized in 2016 (see below). 201 5 Performance Year Deferred Compensation Awards. In January 2016 , the Company grante d approximately $0.8 billion of stock-based awards and $1 .0 billion of deferred cash- based awards related to the 2015 performance year that contain a future service requirement. Absent estimated or actual forfeitures or cancellations or accelerations, and any future return on referenced investments, the annual compensation cost for these awards will be recognized as follows : Annual Compensation Cost for 2015 Performance Year Awards . 2016 2017 Thereafter Total (dollars in millions) Stock-based awards $ 453 $ 198 $ 162 $ 813 Deferred cash-based awards 545 298 128 971 Total $ 998 $ 496 $ 290 $ 1,784 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans | |
Employee Benefit Plans | 19 . Employee Benefit Plans. The Company sponsors various retirement 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. Pension and Other Postretirement Plans. Substantially all of the U.S. employees of the Company and its U.S. affiliates who were hired before July 1, 2007 are covered by the U.S. pension plan, a non-contributory, defined benefit pension plan that is qualified under Section 401(a) of the Internal Revenue Code (the “U.S. Qualified Plan”). The U.S. Qualified Plan has ceased future benefit accruals. Unfunded supplementary plans (the “Supplemental Plans”) cover certain executives. Liabilitie s for benefits payable under the Supplemental Plans are accrued by the Company and are funded when paid to the participant and beneficiaries. The Morgan Stanley Supplemental Executive Retirement and Excess Plan (the “SEREP”), a non-contributory defined ben efit plan that is not qualified under Section 401(a) of the Internal Revenue Code, ceased future benefit accruals after September 30, 2014. Any benefits earned by participants under the SEREP prior to October 1, 2014 will be payable in the future based on the SEREP’s provisions. The amendment did not have a material impact on the consolidated financial statements. Certain of the Company’s non-U.S. subsidiaries also have defined benefit pension plans covering substantially all of their employees. The Co mpany’s pension plans generally provide pension benefits that are based on each employee’s years of credited service and on compensation levels specified in the plans. The Company has an unfunded postretirement benefit plan that provides medical and life insurance for eligible U.S. retirees and medical insurance for their dependents. The Morgan Stanley Medical Plan was amended to change the health care plans offered afte r December 31, 2014 for retirees who are Medicare-eligible and age 65 or older. The amendment did not have a material impact on the consolidated financial statements. Components of the Net Periodic Benefit Expense (Income ). Pension Plans Other Postretirement Plans 2015 2014 2013 2015 2014 2013 (dollars in millions) Service cost, benefits earned during the period $ 19 $ 20 $ 23 $ 1 $ 2 $ 4 Interest cost on projected benefit obligation 152 154 151 3 5 7 Expected return on plan assets (120) (110) (114) — — — Net amortization of prior service credit (1) — — (18) (14) (13) Net amortization of actuarial loss 26 22 36 — — 3 Curtailment loss — 3 — — — — Settlement loss 2 2 1 — — — Net periodic benefit expense (income) $ 78 $ 91 $ 97 $ (14) $ (7) $ 1 Pre-T ax Amounts Recognized in Other Comprehensive Loss (Income). Pension Plans Other Postretirement Plans 2015 2014 2013 2015 2014 2013 (dollars in millions) Net loss (gain) $ (212) $ 18 $ 87 $ 3 $ 9 $ (52) Prior service cost (credit) (1) 2 3 9 (64) — Amortization of prior service credit 1 — — 18 14 13 Amortization of net loss (28) (27) (37) — — (3) Total recognized in other comprehensive loss (income) $ (240) $ (7) $ 53 $ 30 $ (41) $ (42) The Company generally amortizes unrecognized net gains and losses into net periodic benefit expense to the extent that the gain or loss exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets. The amortization of the unrecognized net gains and losses is generally over the future service of active participants. The U.S. Qualified Plan and, effective October 1, 2014, the SEREP amortize the unrecognized net gains and losses over the average life expectancy of participants. Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense. Pension Plans Other Postretirement Plans 2015 2014 2013 2015 2014 2013 Discount rate(1) 3.86% 4.74% 3.95% 3.77% 3.77% 3.88% Expected long-term rate of return on plan assets 3.59% 3.75% 3.73% N/A N/A N/A Rate of future compensation increases 2.85% 1.06% 0.98% N/A N/A N/A ________ N/A—Not Applicable. (1) The Other p ostretirement plans’ discount rate for 201 5 changed to 3.77% from 3 . 69 % effective April 30, 2015 with the amendment and remeasurement of the Morgan Stanley Medical Plan . The accounting for pension and postretirement plans involves certain assumptions and estimates. The expected long-term rate of return on plan assets is a long-term assumption that generally is expected to remain the same from one year to the next un less there is a significant change in the target asset allocation, the fees and expenses paid by the plan or market conditions. The expected long-term rate of return for the U.S. Qualified Plan was estimated by computing a weighted average of the underlyin g long-term expected returns based on the investment managers’ target allocations. The U.S. Qualified Plan is primarily invested in fixed income securities and related derivative instruments, including interest rate swap contracts. This asset allocation is expected to help protect the plan’s funded status and limit volatility of the Company’s contributions. Total U.S. Qualified Plan investment portfolio performance is assessed by comparing actual investment performance to changes in the estimated present va lue of the U.S. Qualified Plan’s benefit obligation. Benefit Obligations and Funded Status. Reconciliation of the Changes in the Benefit Obligation and Fair Value of Plan Assets. Pension Plans Other Postretirement Plans 2015 2014 2015 2014 (dollars in millions) Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 4,007 $ 3,330 $ 75 $ 128 Service cost 19 20 1 2 Interest cost 152 154 3 5 Actuarial loss (gain)(1) (267) 555 4 5 Plan amendments (1) 2 9 (64) Plan curtailments (9) (1) — — Plan settlements (29) (8) — — Change in mortality assumptions(2) (46) 203 (1) 4 Benefits paid (194) (213) (4) (5) Other, including foreign currency exchange rate changes (28) (35) — — Benefit obligation at end of year $ 3,604 $ 4,007 $ 87 $ 75 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of year $ 3,705 $ 2,867 $ — $ — Actual return on plan assets 9 850 — — Employer contributions(3) 31 244 4 5 Benefits paid (194) (213) (4) (5) Plan settlements (29) (8) — — Other, including foreign currency exchange rate changes (25) (35) — — Fair value of plan assets at end of year $ 3,497 $ 3,705 $ — $ — Funded (unfunded) status $ (107) $ (302) $ (87) $ (75) ________ (1) Amounts primarily reflect impact of year-over-year discount rate fluctuations. (2) Amounts r epresent adoption of new mortality tables published by the Society of Actuaries. ( 3 ) In December 2014, an elective $ 200 million co ntribution was made to the U.S. Qualified Plan primarily to offset the increase in liability due to the p lan’s adoption of new mortality tables. Summary of F unded Status. Pension Plans Other Postretirement Plans At December 31, 2015 At December 31, 2014 At December 31, 2015 At December 31, 2014 (dollars in millions) Amounts recognized in the consolidated statements of financial condition consist of: Assets $ 382 $ 224 $ — $ — Liabilities (489) (526) (87) (75) Net amount recognized $ (107) $ (302) $ (87) $ (75) Amounts recognized in accumulated other comprehensive loss consist of: Prior service cost (credit) $ (1) $ (1) $ (34) $ (61) Net loss (gain) 626 866 (2) (5) Net loss (gain) recognized $ 625 $ 865 $ (36) $ (66) The estimated prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit expense over 2016 is approximately $ 1 million for defined benefit pension plans and $ 17 million for other postretirement plans. The estimated net loss that will be amortized from accumulated other comprehensive loss into net periodic benefit expense over 2016 is approximately $ 12 million for defined benefit pension plans. The accumulated benefit obligation for all defined benefit pension plans was $ 3,592 million and $ 3,988 million at December 31, 2015 and December 31, 2014 , respectively. Pension Plans with Projected Benefit Obligations in Excess of the Fair Value of Plan Assets . At December 31, 2015 At December 31, 2014 (dollars in millions) Projected benefit obligation $ 543 $ 626 Fair value of plan assets 54 100 Pension Plans with Accumulated Benefit Obligations in Excess of the Fair Value of Plan Assets. At December 31, 2015 At December 31, 2014 (dollars in millions) Accumulated benefit obligation $ 531 $ 588 Fair value of plan assets 54 82 Weighted Average Assumptions Used to Determine Benefit Obligations. Pension Plans Other Postretirement Plans At December 31, 2015 At December 31, 2014 At December 31, 2015 At December 31, 2014 Discount rate 4.27% 3.86% 4.13% 3.69% Rate of future compensation increase 3.19% 2.85% N/A N/A _______ N/A—Not Applicable. The discount rates used to determine the benefit obligations for the U.S. pension and the U.S. postretirement plans were selected by the Company, in consultation with its independent actuaries, using a pension discount yield curve based on the characteristics of the plans, each determined independently. The pension discount yield curve represents spot discount yields based on duration implicit in a representative broad-based Aa rated corporate bond universe of high-quality fixed income in vestments. For all non-U.S. pension plans, the Company set the assumed discount rates based on the nature of liabilities, local economic environments and available bond indices. Assumed Health Care Cost Trend Rates Used to Determine the U.S. Postretirem ent Benefit Obligations. At December 31, 2015 At December 31, 2014 Health care cost trend rate assumed for next year: Medical 6.25% 6.88-7.23% Prescription 11.00% 7.87% Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.50% 4.50% Year that the rate reaches the ultimate trend rate 2038 2029 Assumed health care cost trend rates can have a significant effect on the amounts reported for the Company’s postretirement benefit plan. Effect of Changes in Assumed Health Care Cost Trend Rates. One-Percentage Point Increase One-Percentage Point (Decrease) (dollars in millions) Total 2015 postretirement service and interest cost N/M N/M December 31, 2015 postretirement benefit obligation $ 3 $ (3) _______ N/M—Not Meaningful. No impact of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 has been reflected in the consolidated statements of income as Medicare prescription drug coverage was deemed to have no material effect on the Company’s postretirement benefit plan. Plan Assets. The U.S. Qualified Plan assets represent 89 % of the Company’s total pension plan assets. The U.S. Qualified Plan uses a combination of active and risk-controlled fixed income investment strate gies. The fixed income asset allocation consists primarily of fixed income securities and related derivative instruments designed to approximate the expected cash flows of the plan’s liabilities in order to help reduce plan exposure to interest rate variat ion and to better align assets with obligations. The longer duration fixed income allocation is expected to help protect the plan’s funded status and maintain the stability of plan contributions over the long run. Derivative instruments are permitted in the U.S. Qualified Plan’s investment portfolio only to the extent that they comply with all of the plan’s investment policy guidelines and are consistent with the plan’s risk and return objectives. In addition, any investment in derivatives must meet the following conditions: • Derivatives may be used only if they are deemed by the investment manager to be more attractive than a similar direct investment in the underlying cash market or if the vehicle is being used to manage risk of the portfolio. • Derivatives may not be used in a speculative manner or to leverage the portfolio under any circumstances. • Derivatives may not be used as short-term trading vehicles. The investment philosophy of the U.S. Qualified Plan is that investment activity is u ndertaken for long-term investment rather than short-term trading. • Derivatives may be used in the management of the U.S. Qualified Plan’s portfolio only when their possible effects can be quantified, shown to enhance the risk-return profile of the portfolio, and reported in a meaningful and understandable manner. As a fundamental operating principle, any restrictions on the underlying assets apply to a respective derivative product. This includes percentage allocations and credit quality. Derivat ives are used solely for the purpose of enhancing investment in the underlying assets and not to circumvent portfolio restrictions. Plan assets are measured at fair value using valuation techniques that are consistent with the valuation techniques appli ed to the Company’s major categories of assets and liabilities as described in Note 3. Quoted market prices in active markets are the best evidence of fair value and are used as the basis for the measurement, if available. If a quoted market price is av ailable, the fair value is the product of the number of trading units multiplied by the market price. If a quoted market price is not available, the estimate of fair value is based on the valuation approaches that maximize use of observable inputs and mini mize use of unobservable inputs. The fair value of OTC derivative contracts is derived primarily using pricing models, which may require multiple market input parameters. Derivative contracts are presented on a gross basis prior to cash collateral or co unterparty netting. Derivatives consist of investments in interest rate swap contracts and are categorized in Level 2 of the fair value hierarchy. Commingled trust funds are privately offered funds available to institutional clients that are regulated, supervised and subject to periodic examination by a U.S. federal or state agency. The trust must be maintained for the collective investment or reinvestment of assets contributed to it from U.S. tax-qualified employee benefit plans maintained by more than one employer or controlled group of corporations. The sponsor of the commingled trust funds values the funds’ NAV based on the fair value of the underlying securities. The underlying securities of the commingled trust funds consist of mainly long-duration fixed income instruments. Commingled trust 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. Some non-U .S.-based plans hold foreign funds that consist of investments in foreign corporate equity funds, foreign fixed income funds, foreign target cash flow funds and foreign liquidity funds. Foreign corporate equity funds and foreign fixed income funds invest i n individual securities quoted on a recognized stock exchange or traded in a regulated market. Certain fixed income funds aim to produce returns consistent with certain Financial Times Stock Exchange indexes. Foreign target cash flow funds are designed to provide a series of fixed annual cash flows over five or 10 years achieved by investing in government bonds and derivatives. Foreign liquidity funds place a high priority on capital preservation, stable value and a high liquidity of assets. Foreign funds a re generally categorized in Level 2 of the fair value hierarchy as they are readily redeemable at their NAV. Corporate equity funds actively traded on an exchange are categorized in Level 1 of the fair value hierarchy. Other investments held by non-U.S.- based plans consist of real estate funds, hedge funds and pledged insurance annuity contracts. These real estate and hedge funds are categorized in Level 2 of the fair value hierarchy to the extent that they are readily redeemable at their NAV; otherwise, they are categorized in Level 3 of the fair value hierarchy. The pledged insurance annuity contracts are valued based on the premium reserve of the insurer for a guarantee that the insurer has given to the employee benefit plan that approximates fair value . The pledged insurance annuity contracts are categorized in Level 3 of the fair value hierarchy. Fair Value of Net Pension Plan Assets. At December 31, 2015 Level 1 Level 2 Level 3 Total (dollars in millions) Assets: Investments: Cash and cash equivalents(1) $ 28 $ — $ — $ 28 U.S. government and agency securities: U.S. Treasury securities 1,398 — — 1,398 U.S. agency securities — 263 — 263 Total U.S. government and agency securities 1,398 263 — 1,661 Corporate and other debt: State and municipal securities — 2 — 2 Collateralized debt obligations — 22 — 22 Total corporate and other debt — 24 — 24 Derivative contracts — 224 — 224 Commingled trust funds(2) — 1,298 — 1,298 Foreign funds(3) — 338 — 338 Other investments — — 35 35 Total investments 1,426 2,147 35 3,608 Receivables: Other receivables(1) — 54 — 54 Total receivables — 54 — 54 Total assets $ 1,426 $ 2,201 $ 35 $ 3,662 Liabilities: Derivative contracts $ — $ 65 $ — $ 65 Other liabilities(1) — 100 — 100 Total liabilities $ — $ 165 $ — $ 165 Net pension assets $ 1,426 $ 2,036 $ 35 $ 3,497 At December 31, 2014 Level 1 Level 2 Level 3 Total (dollars in millions) Assets: Investments: Cash and cash equivalents(1) $ 63 $ — $ — $ 63 U.S. government and agency securities: U.S. Treasury securities 1,332 — — 1,332 U.S. agency securities — 265 — 265 Total U.S. government and agency securities 1,332 265 — 1,597 Corporate and other debt: State and municipal securities — 2 — 2 Collateralized debt obligations — 62 — 62 Total corporate and other debt — 64 — 64 Derivative contracts — 292 — 292 Derivative-related cash collateral receivable — 2 — 2 Commingled trust funds(2) — 1,432 — 1,432 Foreign funds(3) — 347 — 347 Other investments — — 36 36 Total investments 1,395 2,402 36 3,833 Receivables: Other receivables(1) — 27 — 27 Total receivables — 27 — 27 Total assets $ 1,395 $ 2,429 $ 36 $ 3,860 Liabilities: Derivative contracts $ — $ 33 $ — $ 33 Derivative-related cash collateral payable — 2 — 2 Other liabilities(1) — 120 — 120 Total liabilities $ — $ 155 $ — $ 155 Net pension assets $ 1,395 $ 2,274 $ 36 $ 3,705 ________________________ (1) Cash and cash equivalents, other receivables and other liabilities are valued at their carrying value, which approximates fair value. (2) Commingled trust funds consist of investments in fixed income funds and money market funds of $ 1,239 million and $ 59 million, respectively, at December 31, 2015 and $ 1,280 million and $ 152 million, respectively, at December 31, 2014 . (3) Foreign funds include investments in fixed income funds, liquidity funds and targeted cash flow fun ds of $ 149 million, $ 98 million and $ 91 million, respectively, at December 31, 2015 and $ 158 million, $ 53 million and $ 136 million, respectively, at December 31, 2014 . There were no transfers between levels during 2015 and 2014 . Changes in Level 3 Pension Assets. 2015 2014 (dollars in millions) Balance at beginning of period $ 36 $ 38 Actual return on plan assets related to assets held at end of period (4) (5) Actual return on plan assets related to assets sold during the year — — Purchases, sales, other settlements and issuances, net 3 3 Net transfer in and/or (out) of Level 3 — — Balance at end of period $ 35 $ 36 Cash Flows. The Company’s policy is to fund at least the amounts sufficient to meet minimum funding requirements under applicable employee benefit and tax laws. At December 31, 2015 , the Company expected to contribute approximately $ 50 million to its pension and postretirement benefit plans in 2016 based upon the plans’ current funded status and expected asset return assumptions for 2016. Expected Future Benefit Payments. At December 31, 2015 Pension Plans Other Postretirement Plans (dollars in millions) 2016 $ 153 $ 5 2017 139 6 2018 136 6 2019 141 6 2020 150 7 2021-2025 858 32 Morgan Stanley 401(k) Plan. U.S. employees meeting certain eligibility requirements may participate in the Morgan Stanley 401(k) Plan. Eligible U.S. employees receive discretionary 401(k) matching cash contributions as determined annually by the Company. For 2015 and 2014 , the Company made a $1 for $1 Company match up to 4 % of eligible pay , up to the Internal Revenue Service (“ IRS ”) limit . Matching contributions for 2015 and 2014 were invested according to participants’ investment dire ction. Eligible U.S. employees with eligible pay less than or equal to $100,000 also received a fixed contribution under the 401(k) Plan that equaled 2 % of eligible pay. Transition contributions are allocated to certain eligible employees. The Company match , fixed contribution and transition contribution are included i n the Company’s 401(k) expense. The pre-tax 401(k) expense for 2015 , 2014 and 2013 was $ 255 million, $ 256 million and $ 242 million, respectively. Defined Contribution Pension Plans. The Company maintains separate defined contribution pension plans that cover substantially all employees of certain non-U.S. subsidiaries. Under such plans, benefits are determined based on a fixed rate of base salary with certain vesting requirement s. In 2015 , 2014 and 2013 , the Company’s expense related to these plans was $ 111 million, $ 117 million and $ 111 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Income Taxes | 20. Income Taxes. Provision for (Benefit from) Income Taxes. Components of Provision for (Benefit from) Income Taxes. 2015 2014 2013 (dollars in millions) Current: U.S. federal $ (604) $ 229 $ (102) U.S. state and local 260 164 140 Non-U.S.: United Kingdom 88 178 (16) Japan 114 88 90 Hong Kong 34 36 16 Other(1) 258 301 355 $ 150 $ 996 $ 483 Deferred: U.S. federal $ (207) $ (3) $ (748) U.S. state and local (56) 1 (64) Non-U.S.: United Kingdom (31) (75) 77 Japan 56 262 170 Hong Kong 9 (14) 35 Other(1) (11) (265) (114) $ (240) $ (94) $ (644) Provision for (benefit from) income taxes from continuing operations $ 1,704 $ 1,263 $ 423 Provision for (benefit from) income taxes from discontinued operations $ (4) $ (5) $ (2) _______________ (1) For 2015, Non-U.S. other jurisdictions included significant total tax provisions of $ 68 million, $ 62 million, $ 58 million, $ 45 million and $ 42 million from Mexico, Brazil, Netherlands, India and France, respectively. F or 2014 , Non-U.S. other jurisdictions included significant total tax provisions of $ 44 million, $ 38 million and $ 38 million from Brazil, India and Mexico, respectively . For 2013, Non-U.S. other jurisdictions included significant total tax provisions (benefits) of $ 59 million, $ 54 million and $ (156) million from Brazil, India and Luxembourg, respectively. The Company recorded net income tax provision (benefit) to Additional paid-in capital related to employee stock-based compensation transactions of $ (203) million, $ (6) million and $ 121 million in 2015, 2014 and 2013, respectively. Effective Income Tax Rate. Reconciliation of the U.S. Federal Statutory Income Tax Rate to the Effective Income Tax Rate. 2015 2014 2013 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % U.S. state and local income taxes, net of U.S. federal income tax benefits 1.5 6.5 2.3 Domestic tax credits (1.5) (5.0) (3.2) Tax exempt income (0.2) (3.5) (2.5) Non-U.S. earnings: Foreign Tax Rate Differential (8.7) (22.5) (6.0) Change in Reinvestment Assertion — 1.4 (1.4) Change in Foreign Tax Rates — — 0.1 Wealth Management Legal Entity Restructuring — (38.7) — Non-deductible legal expenses — 25.5 0.9 Other (0.2) (1.2) (5.4) Effective income tax rate 25.9 % (2.5) % 19.8 % The Company’s effective tax rate from continuing operations for 2015 included net discrete tax benefits of $ 564 million. These net discrete tax benefits were primarily associated with the repatriation of non-U.S. earnings at a cost lower than originally estimated due to an internal restructuring to simplify the Company’s legal entity organization in the U.K. Excluding these net discrete tax benefits, the effective tax rate from continuing operations for 2015 would have been 32.5 %. The Company’s effective tax rate from continuing operations for 2014 included net discrete tax benefits of $ 2,226 million. These net discrete tax benefits consisted of: $ 1,380 million primarily due to the release of a deferred tax liability, previously established as part of the acquisition of Smith Barney in 2009 through a charge to Additional paid-in capital, as a result of the legal entity restr ucturing that included a change in tax status of Morgan Stanley Smith Barney Holdings LLC from a partnership to a corporation; $ 609 million principally associated with remeasurement of reserves and related interest due to new information regarding the stat us of a multi-year tax authority examination; and $ 237 million primarily associated with the repatriation of non-U.S. earnings at a cost lower than originally estimated. Excluding these net discrete tax benefits, the effective tax rate from continuing oper ations for 2014 would have been 59.5 %, which is primarily attributable to approximately $900 million of tax provision from non-deductible expenses for litigation and regulatory matters. The Company’s effective tax rate from continuing operations for 2013 included net discrete tax benefits of $ 407 million. These net discrete tax benefits consisted of: $ 161 million related to the remeasurement of reserves and related interest due to new information regarding the status of a multi-year tax authority examinati on; $ 92 million related to the establishment of a previously unrecognized deferred tax asset from a legal entity reorganization; $ 73 million attributable to tax planning strategies to optimize foreign tax credit utilization as a result of the anticipated r epatriation of earnings from certain non-U.S. subsidiaries; and $ 81 million due to the enactment of the American Taxpayer Relief Act of 2012, which retroactively extended a provision of U.S. tax law that defers the imposition of tax on certain active finan cial services income of certain foreign subsidiaries earned outside the U.S. until such income is repatriated to the U.S. as a dividend. Excluding these net discrete tax benefits, the effective tax rate from continuing operations in 2013 would have been 28 .7 %. Deferred Tax Assets and Liabilities. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. Significant Components of the Deferred Tax Assets and Liabilities Balance. At December 31, At December 31, 2015 2014 (dollars in millions) Gross deferred tax assets: Tax credits and loss carryforwards $ 1,987 $ 3,833 Employee compensation and benefit plans 3,514 3,715 Valuation and liability allowances 846 661 Valuation of inventory, investments and receivables 738 586 Other 35 — Total deferred tax assets 7,120 8,795 Deferred tax assets valuation allowance 139 34 Deferred tax assets after valuation allowance $ 6,981 $ 8,761 Gross deferred tax liabilities: Non-U.S. operations $ 269 $ 925 Fixed assets 716 565 Other — 65 Total deferred tax liabilities $ 985 $ 1,555 Net deferred tax assets $ 5,996 $ 7,206 The Company had tax credit carryforwards for which a related deferred tax asset of $ 1,647 million and $ 3,740 million was recorded at December 31, 2015 and December 31, 2014, respectively. These carryforwards are subject to annual limitations on utilization, with a significant amount scheduled to expire in 2020, if not utilized. The Company believes the recognized net deferred tax asset (after valuation allowance) of $5,996 million at December 31, 2015 is more likely than not to be realized bas ed on expectations as to future taxable income in the jurisdictions in which it operates. The Company had $ 10,209 million and $ 7,364 million of cumulative earnings at December 31, 2015 and December 31, 2014, respectively, attributable to foreign subsidiar ies for which no U.S. provision has been recorded for income tax that could occur upon r epatriation. Accordingly, $ 893 million and $ 841 million of deferred tax liabilities were not recorded with respect to these earnings at December 31, 2015 and December 3 1, 2014, respectively. The increase in indefinitely reinvested earnings is attributable to regulatory and other capital requirements in foreign jurisdictions. Unrecognized Tax Benefits. The total amount of unrecognized tax benefits was approximately $1.8 billion, $ 2.2 billion and $4.1 billion at December 31, 2015, December 31, 2014 and December 31, 2013 , respectively. Of this to tal, approximately $ 1.1 billion, $ 1.0 billion and $ 1. 4 billion , respectively (net of federal benefit of state issues, competent authority and foreign tax credit offsets) , represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective ta x rate in future periods. Interest and penalties related to unrecognized tax benefits are classified as provision for income taxes. The Company recognized $ 18 million, $ (35) million and $ 50 million of interest expense (benefit) (net of federal and st ate income tax benefits) in the consolidated statements of income for 2015, 2014 and 2013, respectively. Interest expense a ccrued at December 31, 2015, December 31, 2014 and December 31, 2013 was approximately $ 122 million, $ 258 million and $ 293 million , respe ctively, net of federal and state income tax benefits. The decrease as of December 31, 2015 is primarily attributable to a balance sheet reclassification related to certain multi-year tax authority examinations. Penalties related to unrecognized tax benefi ts for the years mentioned above were immaterial. Reconciliation of the Beginning and Ending Amou nt of Unrecognized Tax Benefits. Unrecognized Tax Benefits (dollars in millions) Balance at December 31, 2012 $ 4,065 Increase based on tax positions related to the current period 51 Increase based on tax positions related to prior periods 267 Decrease based on tax positions related to prior periods (141) Decrease related to settlements with taxing authorities (146) Balance at December 31, 2013 $ 4,096 Increase based on tax positions related to the current period $ 135 Increase based on tax positions related to prior periods 100 Decrease based on tax positions related to prior periods (2,080) Decrease related to settlements with taxing authorities (19) Decrease related to a lapse of applicable statute of limitations (4) Balance at December 31, 2014 $ 2,228 Increase based on tax positions related to the current period $ 230 Increase based on tax positions related to prior periods 114 Decrease based on tax positions related to prior periods (753) Decrease related to settlements with taxing authorities (7) Decrease related to a lapse of applicable statute of limitations (8) Balance at December 31, 2015 $ 1,804 Tax Authority Examinations. The Company is under continuous examination by the IRS and other tax authorities in certain countries, such as Japan and the U.K., and in states in which it has significant business operations, such as New York. The Company is currently at various levels of field examination with respect to audits by the IRS, as well as New York State and New York City, for tax years 2009-2012 and 2007- 2009, respectively. The IRS has substantially completed the field examination for the audit of tax years 2006- 2008. The Company believes that the resolution of these tax matters will not have a material effect on the consolidated statements of financial condition, although a res olution could have a material impact on the consolidated statements of income for a particular future period and on the effective tax rate for any period in which such resolution occurs. During the third quarter of 2015, the IRS completed an Appeals Office review of matters from tax years 1999 - 2005 and submitted a final report to the Congressional Joint Committee on Taxation for approval. The Company has reserved the right to contest certain items, the resolution of which is not expected to have a material impact on the effective tax rate or the consolidated financial statements. During 2016, the Company expects to reach a conclusion with the U.K. tax authorities on substantially all issues through tax year 2010, the resolution of which is not expected to have a material impact on the effective tax rate or the consolidated financial statements. The Company has established a liability for unrecognized tax benefits that it believes is adequate in relation to the potential for additional assessments. Once est ablished, the Company adjusts unrecognized tax benefits only when more information is available or when an event occurs necessitating a change. The Company periodically evaluates the likelihood of assessments in each taxing jurisdiction resulting from the expiration of the applicable statute of limitations or new information regarding the status of current and subsequent years’ examinations. As part of the Company’s periodic review, federal and state unrecognized tax benefits were released or remeasured . A s a result of this remeasurement , the income tax provision included net discrete tax benefits of $609 million and $161 million in 2014 and 2013, respectively. Additionally, due to new information regarding the status of the IRS field examinations referred to above, the 2014 total amount of unrecognized tax benefits decreased by $ 2.0 billion. It is reasonably possible that significant changes in the gross balance of unrecognized tax benefits may occur within the next 12 months related to certain tax author ity examinations referred to above. At this time, however, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits and the impact on the Company’s effective tax rate over the next 12 months. Earliest T ax Year Subject to Examination in Major Tax Jurisdictions. Jurisdiction Tax Year U.S. 1999 New York State and New York City 2007 Hong Kong 2009 U.K. 2010 Japan 2013 Income from Continuing Operations before Income Tax Expense (Benefit). 2015 2014 2013 (dollars in millions) U.S. $ 5,360 $ 1,805 $ 1,738 Non-U.S.(1) 3,135 1,786 2,820 $ 8,495 $ 3,591 $ 4,558 (1) Non-U.S. income is defined as income generated from operations located outside the U.S. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment And Geographic Information | 21 . 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 its management organization. The Company provides a wide range of financial products and services to its customers in each of the business segments: Institutional Securities, Wealth Management and Investment Management. For a further discussion of the business segments, see Note 1. Revenues and exp enses directly associated with each respective business segment are included in determining its operating results. Other revenues and expenses that are not directly attributable to a particular business segment are allocated based upon the Company’s alloca tion methodologies, generally based on each business segment’s respective net revenues, non-interest expenses or other relevant measures. As a result of revenues and expenses from transactions with other operating segments being treated as transactions with external parties, the Company includes an Intersegment Eliminations category to reconcile the business segment results to the consolidated results. Selected Financial Information. 2015 Institutional Securities Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues $ 17,800 $ 12,144 $ 2,331 $ (213) $ 32,062 Interest income 3,190 3,105 2 (462) 5,835 Interest expense 3,037 149 18 (462) 2,742 Net interest 153 2,956 (16) — 3,093 Net revenues $ 17,953 $ 15,100 $ 2,315 $ (213) $ 35,155 Income from continuing operations before income taxes $ 4,671 $ 3,332 $ 492 $ — $ 8,495 Provision for income taxes(1) 825 1,247 128 — 2,200 Income from continuing operations 3,846 2,085 364 — 6,295 Discontinued operations: Income (loss) from discontinued operations before income taxes (24) — 1 — (23) Provision for (benefit from) income taxes (7) — — — (7) Income (loss) from discontinued operations (17) — 1 — (16) Net income 3,829 2,085 365 — 6,279 Net income applicable to nonredeemable noncontrolling interests 133 — 19 — 152 Net income applicable to Morgan Stanley $ 3,696 $ 2,085 $ 346 $ — $ 6,127 2014 Institutional Securities(2) Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues(3)(4) $ 17,463 $ 12,549 $ 2,728 $ (200) $ 32,540 Interest income 3,389 2,516 2 (494) 5,413 Interest expense 3,981 177 18 (498) 3,678 Net interest (592) 2,339 (16) 4 1,735 Net revenues $ 16,871 $ 14,888 $ 2,712 $ (196) $ 34,275 Income (loss) from continuing operations before income taxes $ (58) $ 2,985 $ 664 $ — $ 3,591 Provision for (benefit from) income taxes(5) (90) (207) 207 — (90) Income from continuing operations 32 3,192 457 — 3,681 Discontinued operations: Income (loss) from discontinued operations before income taxes (26) — 7 — (19) Provision for (benefit from) income taxes (7) — 2 — (5) Income (loss) from discontinued operations (19) — 5 — (14) Net income 13 3,192 462 — 3,667 Net income applicable to nonredeemable noncontrolling interests 109 — 91 — 200 Net income (loss) applicable to Morgan Stanley $ (96) $ 3,192 $ 371 $ — $ 3,467 2013 Institutional Securities Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues $ 16,620 $ 12,268 $ 3,060 $ (233) $ 31,715 Interest income 3,572 2,100 9 (472) 5,209 Interest expense 4,673 225 10 (477) 4,431 Net interest (1,101) 1,875 (1) 5 778 Net revenues $ 15,519 $ 14,143 $ 3,059 $ (228) $ 32,493 Income from continuing operations before income taxes $ 946 $ 2,604 $ 1,008 $ — $ 4,558 Provision for (benefit from) income taxes(6) (315) 910 307 — 902 Income from continuing operations 1,261 1,694 701 — 3,656 Discontinued operations: Income (loss) from discontinued operations (81) (1) 9 1 (72) Provision for (benefit from) income taxes (29) — — — (29) Income (loss) from discontinued operations (52) (1) 9 1 (43) Net income 1,209 1,693 710 1 3,613 Net income applicable to redeemable noncontrolling interests 1 221 — — 222 Net income applicable to nonredeemable noncontrolling interests 277 — 182 — 459 Net income applicable to Morgan Stanley $ 931 $ 1,472 $ 528 $ 1 $ 2,932 (1) The Company’s effective tax rate from continuin g operations for 2015 included net discrete tax benefit s of $ 564 million attributable to the Institutio nal Securities business segment (see Note 20 ). (2 ) The Institutional Securities business segment Net loss in 2014 was primarily driven by higher legal expenses (see Note 12 ) . (3) In September 2014, the Company sold a retail property space resulting in a gain on sale of $ 141 million (within Institution al Securities $ 84 million, Wealth Management $ 40 million and Investment Management $ 17 million), which was included within Other revenues on the consolidated statements of income. (4) On July 1, 2014, the Company completed the sale of its ownership stake i n TransMontaigne Inc. The gain on sale, which was included in continuing operations, was approximately $ 112 million within the Institutional Securities business segment for 2014. (5 ) The Company’s effective tax rate from continuing operations for 2014 inc luded net discrete tax benefits of $ 1,390 million and $ 839 million attributable to the Wealth Management and Institutional Securities business segments, respectively (see Note 20). (6) The Company’s effective tax rate from continuing operations for 2013 included net discrete tax benefits of $ 407 million attributable to the Institutional Securities business segment (see Note 20 ). Total Assets by Business Segment . Institutional Securities Wealth Management Investment Management(1) Total(2) (dollars in millions) At December 31, 2015 $ 602,714 $ 179,708 $ 5,043 $ 787,465 At December 31, 2014 $ 630,341 $ 165,147 $ 6,022 $ 801,510 (1) During 2015 and 2014, the Company deconsolidated approximately $244 million and $1.6 billion, respectively, in net assets previously attributable to nonredeemable noncontrolling interests that were primarily related to or associated with real estate funds sponsored by the Company (see Note 13). (2) Corporate assets have been fully allocated to the business segments. Geographic Information. The Company operates in both U.S. and non-U.S. markets. The Compa ny’s non-U.S. business activities are principally conducted and managed through EMEA and Asia-Pacific locations. The net revenues disclosed in the following table reflect the regional view of the Company’s consolidated net revenues on a managed basis, base d 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 representatives op erate in the Americas. • Investment Management: client location, except for Merchant Banking and Real Estate Investing businesses, which are based on asset location. Net Revenues by Region. 2015 2014 2013 (dollars in millions) Americas $ 25,080 $ 25,140 $ 23,358 EMEA 5,353 4,772 4,542 Asia-Pacific 4,722 4,363 4,593 Net revenues $ 35,155 $ 34,275 $ 32,493 Total Assets by Region. At At December 31, 2015 December 31, 2014 (dollars in millions) Americas $ 569,369 $ 622,556 EMEA 146,177 104,152 Asia-Pacific 71,919 74,802 Total $ 787,465 $ 801,510 |
Parent Company
Parent Company | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure | |
Parent Company | 22 . Parent Company. Parent Company Only Condensed Statements of Income and Comprehensive Income (dollars in millions) 2015 2014 2013 Revenues: Dividends from non-bank subsidiaries $ 4,942 $ 2,641 $ 1,113 Trading 574 601 (635) Investments — (1) — Other 53 10 27 Total non-interest revenues 5,569 3,251 505 Interest income 3,055 2,594 2,783 Interest expense 4,073 3,970 4,053 Net interest (1,018) (1,376) (1,270) Net revenues 4,551 1,875 (765) Non-interest expenses: Non-interest expenses (195) 214 185 Income (loss) before income taxes 4,746 1,661 (950) Provision for (benefit from) income taxes (83) (423) (354) Net income (loss) before undistributed gain of subsidiaries 4,829 2,084 (596) Undistributed gain of subsidiaries 1,298 1,383 3,528 Net income 6,127 3,467 2,932 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments (300) (397) (143) Change in net unrealized gains (losses) on AFS securities (246) 209 (433) Pensions, postretirement and other 138 33 (1) Comprehensive income $ 5,719 $ 3,312 $ 2,355 Net income $ 6,127 $ 3,467 $ 2,932 Preferred stock dividends and other 456 315 277 Earnings applicable to Morgan Stanley common shareholders $ 5,671 $ 3,152 $ 2,655 Parent Company Only Condensed Statements of Financial Condition (dollars in millions, except share data) December 31, December 31, 2015 2014 Assets Cash and due from banks $ 5,169 $ 5,068 Deposits with banking subsidiaries 4,311 4,556 Interest bearing deposits with banks 2,421 1,126 Trading assets, at fair value 354 5,014 Securities purchased under agreement to resell with affiliates 47,060 41,601 Advances to subsidiaries: Bank and bank holding company 18,380 19,982 Non-bank 106,192 112,863 Equity investments in subsidiaries: Bank and bank holding company 25,787 24,573 Non-bank 34,927 34,649 Other assets 6,259 7,805 Total assets $ 250,860 $ 257,237 Liabilities Short-term borrowings $ 40 $ 695 Trading liabilities, at fair value 138 4,042 Payables to subsidiaries 29,220 35,517 Other liabilities and accrued expenses 2,189 2,342 Long-term borrowings 144,091 143,741 Total liabilities 175,678 186,337 Equity Preferred stock (see Note 15) 7,520 6,020 Common stock, $0.01 par value: Shares authorized: 3,500,000,000 at December 31, 2015 and December 31, 2014; Shares issued: 2,038,893,979 at December 31, 2015 and December 31, 2014; Shares outstanding: 1,920,024,027 and 1,950,980,142 at December 31, 2015 and December 31, 2014, respectively 20 20 Additional paid-in capital 24,153 24,249 Retained earnings 49,204 44,625 Employee stock trusts 2,409 2,127 Accumulated other comprehensive loss (1,656) (1,248) Common stock held in treasury, at cost, $0.01 par value: Shares outstanding: 118,869,952 and 87,913,837 at December 31, 2015 and December 31, 2014, respectively (4,059) (2,766) Common stock issued to employee stock trusts (2,409) (2,127) Total shareholders' equity 75,182 70,900 Total liabilities and equity $ 250,860 $ 257,237 Parent Company Only Condensed Statements of Cash Flows (dollars in millions) 2015 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 6,127 $ 3,467 $ 2,932 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Deferred income taxes 63 98 (303) Compensation payable in common stock and options 1,104 1,260 1,180 Amortization (83) (182) (47) Undistributed gain of subsidiaries (1,298) (1,383) (3,528) Changes in assets and liabilities: Trading assets, net of Trading liabilities (2,958) 2,307 (7,332) Other assets 1,474 (490) (165) Other liabilities and accrued expenses (1,711) 488 (4,192) Net cash provided by (used for) operating activities 2,718 5,565 (11,455) CASH FLOWS FROM INVESTING ACTIVITIES Advances to and investments in subsidiaries 1,364 (7,790) 7,458 Securities purchased under agreement to resell with affiliates (5,459) (7,853) 14,745 Net cash provided by (used for) investing activities (4,095) (15,643) 22,203 CASH FLOWS FROM FINANCING ACTIVITIES Net proceeds from (payments for) short-term borrowings (655) 189 279 Proceeds from: Excess tax benefits associated with stock-based awards 211 101 10 Issuance of preferred stock, net of issuance costs 1,493 2,782 1,696 Issuance of long-term borrowings 28,575 33,031 22,944 Payments for: Long-term borrowings (22,803) (28,917) (31,928) Repurchases of common stock and employee tax withholdings (2,773) (1,458) (691) Cash dividends (1,455) (904) (475) Net cash provided by (used for) financing activities 2,593 4,824 (8,165) Effect of exchange rate changes on cash and cash equivalents (65) (208) (100) Net increase (decrease) in cash and cash equivalents 1,151 (5,462) 2,483 Cash and cash equivalents, at beginning of period 10,750 16,212 13,729 Cash and cash equivalents, at end of period $ 11,901 $ 10,750 $ 16,212 Cash and cash equivalents include: Cash and due from banks $ 5,169 $ 5,068 $ 2,296 Deposits with banking subsidiaries 4,311 4,556 7,070 Interest bearing deposits with banks 2,421 1,126 6,846 Cash and cash equivalents, at end of period $ 11,901 $ 10,750 $ 16,212 Supplemental Disclosure of Cash Flow Information. Cash payments for interest were $ 3,959 million, $ 3,652 million and $ 3,733 million for 2015 , 2014 and 2013 , respectively. Cash payments for income taxes, net of refunds, were $ 255 million, $ 187 million and $ 268 million for 2015 , 2014 and 2013 , respectively. Transactions with Subsidiaries. The Parent Company has transactions with its consolidated subsidiaries determined on an agreed-upon basis and has guaranteed certain unsecured lines of credit and contractual obligations on certain of its consolidated subsidiaries. Certain reclassification s have been made to prior-period amounts to conform to the current year’s presentation. Parent Company’s Long-Term Borrowings. At At December 31, December 31, 2015 2014 (dollars in millions) Senior debt $ 130,817 $ 130,533 Subordinated debt 13,274 13,208 Total $ 144,091 $ 143,741 Guarantees. In the normal course of its business, the Parent Company guarantees certain of its subsidiaries’ obligations under derivative and other financial arrangements. The Parent Company records Trading assets and Trading liabilities, which include derivative contracts, at fair value on its condensed statements of financial condition. The Parent Company also, in the normal course of its business, provides standard indemnities to counterparties on behalf of its subsidiaries for taxes, including U. S. and foreign withholding taxes, on interest and other payments made on derivatives, securities and stock lending transactions, and certain annuity products. These indemnity payments could be required based on a change in the tax laws or change in interpr etation of applicable tax rulings. Certain contracts contain provisions that enable the Parent Company to terminate the agreement upon the occurrence of such events. The maximum potential amount of future payments that the Parent Company could be required to make under these indemnifications cannot be estimated. The Parent Company has not recorded any contingent liability in its condensed financial statements for these indemnifications and believes that the occurrence of any events that would trigger paymen ts under these contracts is remote. The Parent Company has issued guarantees on behalf of its subsidiaries to various U.S. and non-U.S. exchanges and clearinghouses that trade and clear securities and/or futures contracts. Under these guarantee arrangem ents, the Parent Company may be required to pay the financial obligations of its subsidiaries related to business transacted on or with the exchanges and clearinghouses in the event of a subsidiary’s default on its obligations to the exchange or the cleari nghouse. The Parent Company has not recorded any contingent liability in its condensed financial statements for these arrangements and believes that any potential requirements to make payments under these arrangements are remote. The Parent Company guar antees certain debt instruments and warrants issued by subsidiaries. The debt instruments and warrants totaled $ 9.1 billion and $ 10.0 billion at December 31, 2015 and December 31, 2014 , respectively. In connection with subsidiary lease obligations, the Parent Company has issued guarantees to various lessors. At December 31, 2015 and December 31, 2014 , the Parent Company had $ 1.1 billion and $ 1.3 billion of guarantees outstanding, respectively, under subsidiary lease obligations, primarily in the U.K . Finance Subsidiary. The Parent Company fully and unconditionally guarantees the securities issued by Morgan Stanley Finance LLC, a 100%-owned finance subsidiary. |
Quarterly Results
Quarterly Results | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data | |
Quarterly Financial Information | 23 . Quarterly Results (U naudited). 2015 Quarter 2014 Quarter First(1) Second Third Fourth(2) First Second(3) Third(4) Fourth(5) (dollars in millions, except per share data) Total non-interest revenues $ 9,311 $ 9,045 $ 7,005 $ 6,701 $ 8,688 $ 8,341 $ 8,350 $ 7,161 Net interest 596 698 762 1,037 308 267 557 603 Net revenues 9,907 9,743 7,767 7,738 8,996 8,608 8,907 7,764 Total non-interest expenses 7,052 7,016 6,293 6,299 6,626 6,676 6,687 10,695 Income (loss) from continuing operations before income taxes 2,855 2,727 1,474 1,439 2,370 1,932 2,220 (2,931) Provision for (benefit from) income taxes 387 894 423 496 785 15 463 (1,353) Income (loss) from continuing operations 2,468 1,833 1,051 943 1,585 1,917 1,757 (1,578) Discontinued operations: Income (loss) from discontinued operations before income taxes (8) (2) (4) (10) (2) (1) (8) (8) Provision for (benefit from) income taxes (3) — (2) (3) (1) (1) (3) — Income (loss) from discontinued operations (5) (2) (2) (7) (1) — (5) (8) Net income (loss) 2,463 1,831 1,049 936 1,584 1,917 1,752 (1,586) Net income applicable to nonredeemable noncontrolling interests 69 24 31 28 79 18 59 44 Net income (loss) applicable to Morgan Stanley $ 2,394 $ 1,807 $ 1,018 $ 908 $ 1,505 $ 1,899 $ 1,693 $ (1,630) Preferred stock dividends and other 80 142 79 155 56 79 64 119 Earnings (loss) applicable to Morgan Stanley common shareholders $ 2,314 $ 1,665 $ 939 $ 753 $ 1,449 $ 1,820 $ 1,629 $ (1,749) Earnings (loss) per basic common share(6): Income (loss) from continuing operations $ 1.21 $ 0.87 $ 0.49 $ 0.40 $ 0.75 $ 0.94 $ 0.85 $ (0.91) Income (loss) from discontinued operations (0.01) — — — — — — — Earnings (loss) per basic common share $ 1.20 $ 0.87 $ 0.49 $ 0.40 $ 0.75 $ 0.94 $ 0.85 $ (0.91) Earnings (loss) per diluted common share(6): Income (loss) from continuing operations $ 1.18 $ 0.85 $ 0.48 $ 0.39 $ 0.74 $ 0.92 $ 0.83 $ (0.91) Income (loss) from discontinued operations — — — — — — — — Earnings (loss) per diluted common share $ 1.18 $ 0.85 $ 0.48 $ 0.39 $ 0.74 $ 0.92 $ 0.83 $ (0.91) Dividends declared per common share(7) $ 0.10 $ 0.15 $ 0.15 $ 0.15 $ 0.05 $ 0.10 $ 0.10 $ 0.10 Book value per common share $ 33.80 $ 34.52 $ 34.97 $ 35.24 $ 32.38 $ 33.46 $ 34.16 $ 33.25 (1 ) The f irst quarter of 2015 included net discrete tax benefit s of $ 564 million, primarily associated with the repatriation of non-U.S. earnings at a cost lower than originally estimated due to an internal restructuring to simplify the Company’s legal entity organization in the U. K. (see Note 20). (2) During the fourth quarter of 2015, the Company incurred specific severance costs of approximately $ 155 million, which is included in Compensation and benefits expenses in the consolidated state ments of income, associated with the Company’s restructuring actions, which were recorded in the business segments, approximately, as follows: Institutional Securities: $ 125 million, Wealth Management: $ 20 million and Investment Management: $ 10 million. (3 ) The se cond quarter of 2014 included net discrete tax benefit s of $ 609 million , principally associated with the remeasurement of reserves and related interest due to new information regarding the status of a multi-year tax authority examination (see Not e 20) . (4 ) The t hird quarter of 2014 included net discrete tax benefit s of $ 237 million , primarily associated with the repatriation of non-U.S. earnings at a cost lower than originally e stimated (see Note 20). The third quarter of 2014 also included a gain on sale of a retail property space of $ 141 million , which was included within Other revenues in the consolidated statement s of income and a gain o n sale of its ownership stake in TransMontaigne Inc. ( 5) The fourth quarter of 2014 includ ed: an increase of legal reserves of approximately $ 3.1 b illion (see Note 12 ) ; net discrete tax benefit s of $ 1,380 million , primarily due to the release of a deferred tax liability as a result of a legal entity restructuring, partially offset by appro ximately $ 900 million of tax provision from non-deductible expenses for litigation and regulatory matters (see Note 20); compensation expense deferral adjustments of $ 1.1 billion (see Note 18 ); and a charge of approximately $ 468 million related to the implementation of FVA (see Note 2), which was reflected as a reduction of the Institutio nal Securities business segment Trading revenues . ( 6 ) Summation of the quarters’ earnings per common share may not equal the annual amounts due to the aver aging effect of the number of shares and share equivalents throughout the year. (7) Beginning with t he dividend declared on April 20, 2015 , the Company increased the quarterly common stock dividend to $ 0.15 per share from $0.10 per share. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events | |
Subsequent Events | 24 . Subsequent Events. The Company has evaluated subsequent events for adjustment to or disclosure in its consolidated financial statements through the date of this report and has not identified any recordable or disclosable events, not otherwise reported in these consolidated financial statements or the notes thereto, except for the following: Common Stock Dividend. On January 19, 2016, the Company announced that its Board of Directors declared a quarterly dividend per co mmon share of $0.15. The dividend was paid on February 15, 2016 to common shareholders of record on January 29, 2016 (see Note 15 ). Long-Term Borrowings. Subsequent to December 3 1 , 201 5 and through February 19 , 201 6 , long-term borrowings increased by approximately $5.2 billion, net of maturities and repayments. This amount includes the issuance of $5.5 billion of senior debt on January 27, 2016 and $400 million of senior debt on February 17, 2016. Legal Settlement. On February 10, 2016 the Compan y reached agreements to settle its pending investigations with the United States Department of Justice, Civil Division (the “Civil Division”), the New York Attorney General (“NY AG”), and the Illinois Attorney General (“IL AG”). The Company’s agreement in principle to settle with the Department of Justice for $2,600 million was reached on February 25, 2015 and was disclosed in the 2014 Form 10-K. All amounts associated with the Civil Division, NY AG and IL AG settlements had been previously accrued. |
Significant Accounting Polici32
Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies | |
Revenue Recognition | Revenue Recognition. Investment Banking. Underwriting revenues and advisory fees from mergers, acquisitions and restructuring transactions are recorded when services for the transactions are determined to be substantially completed, generally as set forth under the terms of the engagement. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same peri od as the related investment banking transaction revenues. Underwriting revenues are presented net of related expenses. Non-reimbursed expenses associated with advisory transactions are recorded within Non-interest expenses. Commissions and F ees. C ommission and fee revenues are recognized on trade date. Commission and fee revenues primarily arise from agency transactions in listed and over-the-counter (“OTC”) equity securities; services related to sales and trading activities; and sales of mutual fu nds, futures, insurance products and options. Asset Management, Distribution and Administration Fees. Asset management, distribution and administration fees are recognized over the relevant contract period. Sales commissions paid by the Company in connection with the sale of certain classes of shares of its open-end mutual fund products are accounted for as deferred commission assets. The Company periodically tests the deferred commission assets for recoverability based on cash flows expected to be received in future periods. In certain management fee arrangements, the Company is entitled to receive performance-based fees (also referred to as incentive fees and includes carried interest) when the return on assets under management exceeds certain benc hmark returns or other performance targets. In such arrangements, performance fee revenues are accrued (or reversed) quarterly based on measuring account/fund performance to date versus the performance benchmark stated in the investment management agreemen t. Performance-based fees are recorded within Investments or Asset management, distribution and administration fees depending on the nature of the arrangement. The Company’s portion of the unrealized cumulative amount of performance-based fee revenue (for which the Company is not obligated to pay compensation) at risk of reversing if fund performance falls below stated investment management agreement benchmarks was approximately $ 363 million and $ 634 million at December 31, 2015 and December 31, 2014, respe ctively. See Note 12 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received. Trading and Investments. See “Fair Value of Financial Instruments” below for Trading and Investments revenue recognition discussions. |
Financial Instruments and Fair Value | Fair Value of Financial Instruments. Instruments within Trading assets and Trading liabilities are measured at fair value, either in accordance with accounting guidance or through the fair value option election (discussed below). These financial instruments primarily represent the Company’s trading and investment positions and include both cash and derivative products. In addition, debt securities classified as available for sale (“AFS”) securities and Securities received as collateral and Obligation to return securities received as collateral are measured at fair value. Gains and losses on instruments carried at fair value are reflec ted in Trading revenues, Investments revenues or Investment banking revenues in the consolidated statements of income, except for AFS securities (see “ Investment Securities —Available for Sale and Held to Maturity ” section herein and Note 5) and derivat ives accounted for as hedges (see “Hedge Accounting” section herein and Note 4 ). Interest income and interest expense are recorded within the consolidated statements of income depending on the nature of the instrument and related market conventions. When interest is included as a component of the instruments’ fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. Dividend income is recorded in Trading reve nues or Investments revenues depending on the business activity. The fair value of OTC financial instruments, including derivative contracts related to financial instruments and commodities, is presented in the accompanying consolidated statements of finan cial condition on a net-by-counterparty basis, when appropriate. Additionally, the Company nets the fair value of cash collateral paid or received against the fair value amounts recognized for net derivative positions executed with the same counterparty un der the same master netting agreement. Fair Value Option. The fair value option permits the irrevocable fair value option election at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for tha t instrument. The Company applies the fair value option for eligible instruments, including certain Securities purchased under agreements to resell, loans and lending commitments, equity method investments, Deposits (struct ured certificate of deposits), S h ort-term borrowings ( primarily structured notes), Securities sold under agreements to repurchase, Other secured financings and Long-term borrowings (primarily structured notes). Fair Value Measurement—Definition and Hierarchy. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability ( i.e. , the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation ap proaches and establishes a hierarchy for inputs used in measuring fair value that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable i nputs are inputs that market participants would use in pricing the asset or liability that were developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect assumptions the Company believes ot her market participants would use in pricing the asset or liability that are developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: Level 1. Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted pr ices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2. Valuations based on one or more quoted prices in markets that are not active or for which all sign ificant inputs are observable, either directly or indirectly. Level 3. Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from product to product a nd is affected by a wide variety of factors, including, for example, the type of product, whether the product is new and not yet established in the marketplace, the liquidity of markets and other characteristics particular to the product. To the extent tha t valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy. The Company considers prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2 or Level 2 to Level 3 of the fair value hierarchy (see Note 3). In certain cases, the inputs used to measure fa ir value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input t hat is significant to the fair value measurement in its entirety. For assets and liabilities that are transfe rred between Levels in the fair value hierarchy during the period, fair values are ascribed as if the assets or liabilities had been transferred as of the beginning of the period. Valuation Techniques. Many cash instruments and OTC derivative contracts have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that a party is willing to pay for an asset. Ask prices represent the lowest price that a party is willing to accept for an asset. The Company carries positions at the point within the bid-ask range that meet its best estimate of fair value. For offsetting positions in the same financial instr ument, the same price within the bid-ask spread is used to measure both the long and short positions. Fair value for many cash instruments and OTC derivative contracts is derived using pricing models. Pricing models take into account the contract terms as well as multiple inputs, including, where applicable, commodity prices, equity prices, interest rate yield curves, credit curves, correlation, creditworthiness of the counterparty, creditworthiness of the Company, option volatility and currency rates. Where appropriate, valuation adjustments are made to account for various factors such as liquidity risk (bid-ask adjustments), credit quality, model uncertainty and concentration risk. Adjustments for liquidity risk adjust model-derived mid-market levels of Level 2 and Level 3 financial instruments for the bid-mid or mid-ask spread required to properly reflect the exit price of a risk position. Bid-mid and mid-ask spreads are marked to levels observed in trade activity, broker quotes or other external thir d-party data. Where these spreads are unobservable for the particular position in question, spreads are derived from observable levels of similar positions. The Company applies credit-related valuation adjustments to its short-term and long-term borrowin gs (primarily structured notes) for which the fair value option was elected and to OTC derivatives. The Company considers the impact of changes in its own credit spreads based upon observations of the secondary bond market spreads when measuring the fair value for short-term and long-term borrowings. For OTC derivatives, the impact of changes in both the Company’s and the counterparty’s credit rating is considered when measuring fair value. In determining the expected exposure, the Company simulates the di stribution of the future exposure to a counterparty, then applies market-based default probabilities to the future exposure, leveraging external third-party credit default swap (“CDS”) spread data. Where CDS spread data are unavailable for a specific count erparty, bond market spreads, CDS spread data based on the counterparty’s credit rating or CDS spread data that reference a comparable counterparty may be utilized. The Company also considers collateral held and legally enforceable master netting agreement s that mitigate its exposure to each counterparty. Adjustments for model uncertainty are taken for positions whose underlying models are reliant on significant inputs that are neither directly nor indirectly observable, hence requiring reliance on establ ished theoretical concepts in their derivation. These adjustments are derived by making assessments of the possible degree of variability using statistical approaches and market-based information where possible. The Company generally subjects all valuation s and models to a review process initially and on a periodic basis thereafter. The Company may apply a concentration adjustment to certain of its OTC derivatives portfolios to reflect the additional cost of closing out a particularly large risk exposure. Where possible, these adjustments are based on observable market information, but in many instances, significant judgment is required to estimate the costs of closing out concentrated risk exposures due to the lack of liquidity in the marketplace. During 2014, the Company incorporated funding valuation adjustments (“FVA”) into the fair value measurements of OTC uncollateralized or parti ally collateralized derivatives and in collateralized derivatives where the terms of the agreement do not permit th e reuse of the collateral received. The Company’s implementation of FVA reflects the inclusion of FVA in the pricing and valuations by the majority of mark et participants involved in its principal exit market for these instruments. In general, FVA reflects a market funding risk premium inherent in the noted derivative instruments. The methodology for measuring FVA leverages the Company’s existing credit-related valuation adjustment calculation methodologies, which apply to both assets and liabilities. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, assumptions are set to reflect those that the Company believ es market participants would use in pricing the asset or liability at the measurement date. Where the Company manages a group of financial assets and financial liabilities on the basis of its net exposure to either market risks or credit risk, the Company measures the fair value of that group of financial instruments consistently with how market participants would price the net risk exposure at the measurement date. See Note 3 for a description of valuation techniques applied to the major categories of financial instruments measured at fair value. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis. Certain of the Company’s assets and liabilities are measured at fair value on a non-recurring basis. The Company incurs losses or gains for any adjustments of these assets to fair value. For assets and liabilities measured at fair value on a non-recurring basis, fair value is determined by using various valuation approaches. The same hierarchy for inputs as described above, which maximizes the use of observable inputs and minimizes the use of unobservable inputs by generally requiring that the observable inputs be used when available, is used in measuring fair value for these items. Valuation Process . The Valuation Review G roup (“VRG”) within the Company’s Financial Control Group (“FCG”) is responsible for the Company’s fair value valuation policies, processes and procedures. VRG is independent of the business units and reports to the Chief Financial Officer (“CFO”), who has final authority over the valuation of the Company’s financial instruments. VRG implements valuation control processes to validate the fair value of the Company’s financial instruments measured at fair value, including those derived from pricing models. Th ese control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to ensure that the valuati on approach utilized is appropriate and consistently applied and that the assumptions are reasonable. The Company’s control processes apply to financial instruments categorized in Level 1, Level 2 or Level 3 of the fair value hierarchy, unless otherwise noted. These control processes include: Model Review. VRG, in conjunction with the Market Risk Department (“MRD”) and, where appropriate, the Credit Risk Management Department, both of which report to the Chief Risk Officer, independently review val uation models’ theoretical soundness, the appropriateness of the valuation methodology and calibration techniques developed by the business units using observable inputs. Where inputs are not observable, VRG reviews the appropriateness of the proposed valu ation methodology to ensure it is consistent with how a market participant would arrive at the unobservable input. The valuation methodologies utilized in the absence of observable inputs may include extrapolation techniques and the use of comparable obser vable inputs. As part of the review, VRG develops a methodology to independently verify the fair value generated by the business unit’s valuation models. All of the Company’s valuation models are subject to an independent annual review. Independent Price Verification. The business units are responsible for determining the fair value of financial instruments using approved valuation models and valuation methodologies. Generally on a monthly basis, VRG independently validates the fair values of fina ncial instruments determined using valuation models by determining the appropriateness of the inputs used by the business units and by testing compliance with the documented valuation methodologies approved in the model review process described above. V RG uses recently executed transactions, other observable market data such as exchange data, broker-dealer quotes, third-party pricing vendors and aggregation services for validating the fair value of financial instruments generated using valuation models. VRG assesses the external sources and their valuation methodologies to determine if the external providers meet the minimum standards expected of a third-party pricing source. Pricing data provided by approved external sources are evaluated using a number of approaches; for example, by corroborating the external sources’ prices to executed trades, by analyzing the methodology and assumptions used by the external source to generate a price and/or by evaluating how active the third-party pricing source (or or iginating sources used by the third-party pricing source) is in the market. Based on this analysis, VRG generates a ranking of the observable market data to ensure that the highest-ranked market data source is used to validate the business unit’s fair valu e of financial instruments. For financial instruments categorized within Level 3 of the fair value hierarchy, VRG reviews the business unit’s valuation techniques to ensure these are consistent with market participant assumptions. The results of this independent price verification and any adjustments made by VRG to the fair value generated by the business units are presented to management of the Company’s three business segments ( i.e. , Institutional Securities, Wealth Management and Investment Managem ent), the CFO and the Chief Risk Officer on a regular basis. Review of New Level 3 Transactions. VRG reviews the models and valuation methodology used to price all new material Level 3 transactions, and both FCG and MRD management must approve the fa ir value of the trade that is initially recognized. For further information on financial assets and liabilities that are measured at fair value on a recurring and non-recurring basis, see Note 3. |
Offsetting of Derivative Instruments | Offsetting of Derivative Instruments. 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, to net a cou nterparty's rights and obligations under the agreement and to liquidate and set off 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 insolvenc y regime may not support the enforceability of the master netting agreement or collateral 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 (see Note 4). The Company’s policy is generally to receive securities and cash posted as collateral (with rights of rehypothecation ), irrespective of the enforceability dete rmination 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 it to take control of such collateral in the event o f 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. For information related to offsetting of derivatives and certain col lateral transactions, see Notes 4 and 6 , respectively. |
Hedge Accounting | Hedge Accounting. The Company applies hedge accounting using various derivative financial instruments for the following types of hedges: hedges of changes in fair value of asse ts and liabilities due to the risk 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) . These financial instr uments are included within Trading assets—Derivative and other contracts or Trading liabilities—Derivative and other contracts in the consolidated statements of financial condition. For all hedges where hedge accounting is being applied, effectiveness t esting 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. 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 its own cre dit 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 uses forward foreign exchange contracts to manage the currency exposure relating to its net investments in non-U.S. dollar functional currency operations. To the extent that the notional amounts of the hedging instruments equal the portion of the investments being hedged and the underlying exchange rate of the derivative hedging instrument relates to the exchan ge rate between the functional currency of the investee and the parent's functional currency, no hedge ineffectiveness is recognized in earnings. If these exchange rates are not the same, the Company uses regression analysis to assess the prospective and r etrospective effectiveness of the hedge relationships, and any ineffectiveness is recognized in Interest income. The gain or loss from revaluing hedges of net investments in foreign operations at the spot rate is deferred and reported within Accumulated ot her comprehensive income (loss) (“AOCI”) . The forward points on the hedging instruments are excluded from hedge effectiveness testing and are recorded in Interest income. For further information on derivative instruments and hedging activities, see Note 4. |
Transfer of Financial Assets | Transfers of Financial Assets. Transfers of financial assets are accounted for as sales when the Company has relinquished control over the transferred assets. Any related gain or loss on sale is recorded in Net revenues. Transfers that are not accounted for as sales are treated as a collateralized financing, in certain cases referred to as “failed sales.” Securities borrowed or purchased under agreements to resell and securities loaned or sold under agreements to repurchase are treated as co llateralized financings (see Note 6). Securities purchased under agreements to resell (“reverse repurchase agreements”) and Securities sold under agreements to repurchase (“repurchase agreements”) are carried on the consolidated statements of fi nancial condition at the amounts of cash paid or received, plus accrued interest, except for certain repurchase agreements for which the Company has elected the fair value option (see Note 3). Where appropriate, repurchase agreements and reverse repurch ase agreements with the same counterparty are reported on a net basis. Securities borrowed and securities loaned are recorded at the amount of cash collateral advanced or received. |
Premises, Equipment and Software Costs | Premises, Equipment and Software Costs. Premises, equipment and softw are costs consist of buildings, leasehold improvements, furniture, fixtures, computer and communications equipment, power generation assets, terminals, pipelines and software (externally purchased and developed for internal use). Premises, equipment and so ftware costs are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided by the straight-line method over the estimated useful life of the asset. Estimated useful lives are generally as follows: buildings—3 9 years; furniture and fixtures—7 years; computer and communications equipment—3 to 9 years; power generation assets—15 to 29 years; and terminals, pipeline s and equipment—3 to 30 years. Estimated useful lives for software costs are generally 3 to 10 years . Leasehold improvements are amortized over the lesser of the estimated useful life of the asset or, where applicable, the remaining term of the lease, but generally not exceeding: 25 years for building structural improvements and 15 years for other impr ovements. Premises, equipment and software costs are tested for impairment whenever events or changes in circumstances suggest that an asset’s carrying value may not be fully recoverable in accordance with current accounting guidance. |
Income Taxes | Income Taxes. The Company accounts for income tax expense (benefit) using the asset and liability method. Under this method, deferred tax assets and liabilities are recorded based upon the temporary differences between the financial statement and income tax bases of a ssets and liabilities using currently enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income tax expense (benefit) in the period that includes the enactment date. The Company recognizes net deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive an d negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize deferred tax a ssets in the future in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. Uncertain tax positions are recorded on the basis of a two-step proc ess whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold , the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. Interest and penalties related to unrecognized tax benefits are classified as provision for inco me taxes. |
Earnings Per Common Share | Earnings per Common Share. Basic earnings per common share (“EPS”) is computed by dividing earnings available to Morgan Stanley common shareholders by the weighted average number of common shares outstanding for the period. Earnings available to Morgan Stanley common shareholders represents net income applicable to Morgan Stanley reduced by preferred stock dividends and allocations of earnings to participating securities. Common shares outstanding include common stock and vested restr icted 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. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of EPS pursuant to the two-class method. Share-based payment awards that pay dividend equivalents subject to vesting are not deemed participating securities and are included in diluted shares outstanding (if dilutive) under the treasury stock method. The Company has granted performance-based stock units (“PSUs”) that vest and convert to shares of common st ock only if it satisfies predetermined performance and market goals. Since the issuance of the shares is contingent upon the satisfaction of certain conditions, the PSUs are included in diluted EPS based on the number of shares (if any) that would be issua ble if the end of the reporting period was the end of the contingency period. For the calculation of basic and diluted EPS, see Note 16. |
Deferred Compensation | Deferred Compensation. Stock-Based Compensation. The Company measures compensation cost for stock-based awards at fair value and recognizes compensation cost over the service period, net of estimated forfeitures. The Company determines the fair value of RSUs (including RSUs with non-market performance conditions) based on the grant-date fair value of its com mon stock, measured as the volume-weighted average price on the date of grant. RSUs with market-based conditions are valued using a Monte Carlo valuation model. The fair value of stock options is determined using the Black-Scholes valuation model and the s ingle grant life method. Under the single grant life method, option awards with graded vesting are valued using a single weighted average expected option life. Compensation expense for stock-based compensation awards is recognized using the graded vesti ng attribution method. Compensation expense for awards with performance conditions is recognized based on the probable outcome of the performance condition at each reporting date. Compensation expense for awards with market-based conditions is recognized i rrespective of the probability of the market condition being achieved and is not reversed if the market condition is not met. The Company recognizes the expense for stock-based awards over the requisite service period. These awards generally contain cla wback and cancellation provisions. Certain awards provide the Company discretion to cancel all or a portion of the award under specified circumstances. Compensation expense for those awards is adjusted to fair value based on the Company's common stock pric e or the relevant valuation model, as appropriate, until conversion, exercise or expiration. For anticipated year-end stock-based awards granted to employees expected to be retirement-eligible under award terms that do not contain a future service requirem ent, the Company accrues the estimated cost of these awards over the course of the calendar year preceding the grant date. The Company believes that this method of recognition for retirement-eligible employees is preferable because it better reflects the p eriod over which the compensation is earned. Employee Stock Trusts. The Company maintains and utilizes at its discretion, trusts, referred to as the “Employee stock trusts,” in connection with certain stock-based compensation plans. The assets of the Employee stock trusts are consolidated and, as such, are accounted for in a manner similar to treasury stock, where the shares of common stock outstanding are offset by an equal amount in Common stock issued to employee stock trusts. The Company uses t he grant-date fair value of stock-based compensation as the basis for recognition of the assets in the Employee stock trusts. Subsequent changes in the fair value are not recognized as the Company’s stock-based compensation plans do not permit diversificat ion and must be settled by the delivery of a fixed number of shares of the Company’s common stock. Deferred Cash-Based Compensation . The Company also maintains various deferred cash-based compensation plans for the benefit of certain current and for mer employees that provide a return to the participating employees based upon the performance of various referenced investments. The Company often invests directly, as a principal, in investments or other financial instruments to economically hedge its obl igations under its deferred cash-based compensation plans. Changes in value of such investments made by the Company are recorded in Trading revenues and Investments revenues. Compensation expense for deferred cash-based compensation plans is calculated based on the notional value of the award granted, adjusted for upward and downward changes in the fair value of the referenced investments. For unvested awards, the expense is recognized over the service period using the graded vesting attribution method. Changes in compensation expense resulting from changes in the fair value of the referenced investments will generally be offset by changes in the fair value of investments made by the Company. However, there may be a timing difference between the immediate revenue recognition of gains and losses on the Company’s investments and the deferred recognition of the related compensation expense over the vesting period. For vested awards with only notional earnings on the referenced investments, the expense is full y recognized in the current period. |
Translation of Foreign Currencies | Translation of Foreign Currencies. Assets and liabilities of operations having non-U.S. dollar functional currencies are translated at year-end rates of exchange, and amounts recognized in the income statement are translated at the rate of exchange on the respective date of recognition for each amount. Gains or losses resulting from translating foreign currency financial statements, net of hedge gains or losses and related tax effects, are reflected in AOCI, a separ ate component of Morgan Stanley Shareholders’ equity on the consolidated statements of financial condition. Gains or losses resulting from remeasurement of foreign currency transactions are included in net income. |
Goodwill and Intangible Assets | Goodwill and 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 se gments. 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 re porting 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 tw o-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 det ermine 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 by utilizing a discounted cash flow methodology or me thodologies that incorporate price-to-book and price-to-earnings multiples of certain comparable companies. Goodwill is not amortized and is reviewed annually (or more frequently when certain events or circumstances exist) for impairment. Other intangible assets are amortized over their estimated useful lives and reviewed for impairment. Impairment losses are recorded within Other expenses in the c onsolidated statements of income. There are no indefinite-lived intangible asse ts for years 2015 and 2014 . |
Marketable Securities Policy | Investment Securities —Available for Sale and Held to Maturity. AFS securities are reported at fair value in the consolidated statements of financial condition with unrealized gains and losses reported in AOCI , net of tax. Interest and dividend income, including amortization of premiums and accretion of discounts, is included in Interest income in the consolidated statements of income. Realized gains and losses on AFS securities are reported in the consolidated statements of income (see Note 5 ). The Company utilizes the “first-in, first-out” method as the basis for determining the cost of AFS securities. Held to maturity (“HTM”) securities are reported at amortized cost in the consolidated statements of financial condition. Interest income, including amortization of premiums and accretion of discounts on HTM securities , is included in Interest income in the consolidated statements of income. Other-than-temporary impairment. AFS debt securities and HTM securities with a current fair va lue less than their amortized cost are analyzed as part of the Company’s periodic assessment of temporary versus other-than-temporary impairment (“OTTI”) at the individual security level. A temporary impairment is recognized in AOCI. OTTI is recognized in the consolidated statements of income with the exception of the non-credit portion related to a debt security that the Company does not intend to sell and is not likely to be required to sell, which is recognized in AOCI. For AFS debt securities that t he Company either has the intent to sell or that the Company is likely to be required to sell before recovery of its amortized cost basis, the impairment is considered other-than-temporary. For those AFS debt securities that the Company does not have t he intent to sell or is not likely to be required to sell, and for all HTM securities, the Company evaluates whether it expects to recover the entire amortized cost basis of the debt security. If the Company does not expect to recover the entire amortized cost of those AFS debt securities or HTM securities, the impairment is considered other-than-temporary and the Company determines what portion of the impairment relates to a credit loss and what portion relates to non-credit factors. A credit loss exists if the present value of cash flows expected to be collected (discounted at the implicit interest rate at acquisition of the security or discounted at the effective yield for securities that incorporate changes in prepayment assumptions) is less than the a mortized cost basis of the security. Changes in prepayment assumptions alone are not considered to result in a credit loss. When determining if a credit loss exists, the Company considers relevant information including the length of time and the extent to which the fair value has been less than the amortized cost basis; adverse conditions specifically related to the security, an industry or geographic area; changes in the financial condition of the issuer of the security, or in the case of an asset-backed d ebt security, changes in the financial condition of the underlying loan obligors; the historical and implied volatility of the fair value of the security; the payment structure of the debt security and the likelihood of the issuer being able to make paymen ts that increase in the future; failure of the issuer of the security to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and recoveries or additional declines in fair value after the balance shee t date. When estimating the present value of expected cash flows, information includes the remaining payment terms of the security, prepayment speeds, financial condition of the issuer(s), expected defaults and the value of any underlying collateral. Fo r AFS equity securities, the Company considers various factors, including the intent and ability to hold the equity security for a period of time sufficient to allow for any anticipated recovery in market value in evaluating whether an OTTI exists. If the equity security is considered other-than-temporarily impaired, the entire OTTI ( i.e. , the difference between the fair value recorded on the balance sheet and the cost basis) will be recognized in the consolidated statements of income. |
Loans | Loans. The Company accounts for loans based on the following categories: loans held for investment; loans held for sale; and loans at fair value. Loans Held for Investment. Loans held for investment are reported as outstanding principal adjusted for any cha rge-offs, the allowance for loan losses, any deferred fees or costs for originated loans, and any unamortized premiums or discounts for purchased loans. Interest Income. Interest income on performing loans held for investment is accrued and recognize d as interest income at the contractual rate of interest. Purchase price discounts or premiums, as well as net deferred loan fees or costs, are amortized into interest income over the life of the loan to produce a level rate of return. Allowance for Loa n Losses. The allowance for loan losses estimates probable losses related to loans specifically identified for impairment in addition to the probable losses inherent in the held for investment loan portfolio. The Company utilizes the U.S. banking reg ulators’ definition of criticized exposures, which consist of the special mention substandard, doubtful and loss categories as credit quality indicators. For further information on the credit indicators, see Note 7. Substandard loans are regularly re viewed for impairment. Factors considered by management when determining impairment include payment status, fair value of collateral, and probability of collecting scheduled principal and interest payments when due. The impairment analysis required depends on the nature and type of loans. Loans classified as Doubtful or Loss are considered impaired. There are two components of the allowance for loan losses: the specific allowance component and the inherent allowance component. The specific allowance co mponent of the allowance for loan losses is used to estimate probable losses for non-homogeneous exposures that have been specifically identified for impairment analysis by the Company and determined to be impaired. When a loan is specifically identified f or impairment, the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or as a practical expedient, the observable market price of the loan or the fair value of the collateral if the loan is collateral dependent. If the present value of the expected future cash flows (or alternatively, the observable market price of the loan or the fair value of the collateral) is less than the recorded investment in the loan, then the Company reco gnizes an allowance and a charge to the provision for loan losses within Other revenues. The inherent allowance component of the allowance for loan losses is used to estimate the probable losses inherent in the loan portfolio and includes non-homogeneous loans that have not been identified as impaired and portfolios of smaller balance homogeneous loans. The Company maintains methodologies by loan product for calculating an allowance for loan losses that estimates the inherent losses in the loan portfolio. Generally, inherent losses in the portfolio for non-impaired loans are estimated using statistical analysis and judgment around the exposure at default, the probability of default and the loss given default. Qualitati ve and environmental factors such as economic and business conditions, nature and volume of the portfolio and lending ter ms and volume and severity of past due loans may also be considered in the calculations. The allowance for loan losses is maintained at a level reasonable to ensure that it can adequately absorb the estimated probable losses inherent in the portfolio. The Company recognizes an allowance and a charge to the provision for loan losses within Other revenues. Troubled Debt Restructurings. The Company may modify the terms of certain loans for economic or legal reasons related to a borrower’s financial difficulties by granting one or more concessions that the Company would not otherwise consider. Such modifications are accounted for and repor ted as troubled debt restructurings (“TDRs”). A loan that has been modified in a TDR is generally considered to be impaired and is evaluated for the extent of impairment using the Company’s specific allowance methodology. TDRs are also generally classifie d as nonaccrual and may only be returned to accrual status after considering the borrower’s sustained repayment performance for a reasonable period. Nonaccrual Loans. The Company places loans on nonaccrual status if principal or interest is past due for a period of 90 days or more or payment of principal or interest is in doubt, unless the obligation is well-secured and in the process of collection. A loan is considered past due when a payment due according to the contractual terms of the loan agreeme nt has not been remitted by the borrower. Substandard loans, if identified as impaired, are categorized as nonaccrual. Loans classified as Doubtful or Loss are categorized as nonaccrual. Payments received on nonaccrual loans held for investment are appl ied to principal if there is doubt regarding the ultimate collectability of principal ( i.e ., cost recovery method). If collection of the principal of nonaccrual loans held for investment is not in doubt, interest income is recognized on a cash basis. If ne ither principal nor interest collection is in doubt, loans are on accrual status and interest income is recognized using the effective interest method. Loans that are on nonaccrual status may not be restored to accrual status until all delinquent principal and/or interest has been brought current after a reasonable period of performance, typically a minimum of six months. Charge-offs. The Company charges off a loan in the period that it is deemed uncollectible and records a reduction in the allowance for loan losses and the balance of the loan. In general, any portion of the recorded investment in a collateral dependent loan (including any capitalized accrued interest, net deferred loan fees or costs and unamortized premium or discount) in excess of th e fair value of the collateral that can be identified as uncollectible, and is therefore deemed a confirmed loss, is charged off against the allowance for loan losses. A loan is collateral-dependent if the repayment of the loan is expected to be provided s olely by the sale or operation of the underlying collateral. In addition, for loan transfers from loans held for investment to loans held for sale, at the time of transfer, any reduction in the loan value is reflected as a charge-off of the recorded invest ment, resulting in a new cost basis. Loan Commitments. The Company records the liability and related expense for the credit exposure related to commitments to fund loans that will be held for investment in a manner similar to outstanding loans disclo sed above. The analysis also incorporates a credit conversion factor, which is the expected utilization of the undrawn commitment. The liability is recorded in Other liabilities and accrued expenses in the consolidated statements of financial condition, an d the expense is recorded in Other non-interest expenses in the consolidated statements of income. For more information regarding loan commitments, standby letters of credit and financial guarantees, see Note 12. Loans Held for Sale. Loans held for sale are measured at the lower of cost or fair value, with valuation changes recorded in Other revenues. The Company determines the valuation allowance on an individual loan basis, except for residential mortgage loans for which the valuation allowance is determined at the loan product level. Any decreases in fair value below the initial carrying amount and any recoveries in fair value up to the initial carrying amount are recorded in Other revenues. However, increases in fair value above initial carryi ng value are not recognized. Interest income on loans held for sale is accrued and recognized based on the contractual rate of interest. Loan origination fees or costs and purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred fees and discounts or premiums are an adjustment to the basis of the loan and, therefore, are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Loans held for sale are subject to the nonaccrual policies described above. Because loans held for sale are recognized at the lower of cost or fair value, the allowance for loan losses and charge-off policies does not apply to these l oans. Loans at Fair Value. Loans for which the fair value option is elected are carried at fair value, with changes in fair value recognized in earnings. Loans carried at fair value are not evaluated for purposes of recording an allowance for loan lo sses. For further information on loans carried at fair value and classified as Trading assets and Trading liabilities , see Note 3. For further information on loans, see Note 7. |
Accounting Developments | Accounting Standards Adopted. Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures. In June 2014, the Financial Accounting Standards Board (the “FASB”) issued an accounting update requiring repurchase-to-maturity transactions be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. This accounting update also requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty (a repurchase financing), which will result in secured borrowing accounting for the repurchase agreement. This guidance became effective for the Company beginning January 1, 2015. In addition, new disclosures are required for sales of financial assets where the Company retains substantially a ll the exposure throughout the term and for the collateral pledged and remaining maturity of repurchase and securities lending agreements, which were effective January 1, 2015 and April 1, 2015, respectively. The adoption of this guidance did not have a ma terial impact on the consolidated financial statements. For further information on the adoption of this guidance, see Notes 6 and 13. Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent ). In May 2015, the FASB issued an accounting update that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured at net asset value (“NAV”) per share, or its equivalent using the practical ex pedient. The Company adopted this guidance retrospectively during the second quarter of 2015, as early adoption is permitted. For further information on the adoption of this guidance, see Note 3. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures | |
Fair Value Measurements, Recurring Valuation Techniques | Asset/Liability Valuation Technique Valuation Hierarchy Classification Trading Assets and Trading Liabilities U.S. Government and Agency Securities U.S. Treasury Securities Fair value is determined using quoted market prices; valuation adjustments are not applied. • Generally Level 1 U.S. Agency Securities Composed of three main categories consisting of: 1. Agency-issued debt - 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. 2. Agency mortgage pass-through pool securities -Fair value is model-driven based on spreads of the comparable to-be-announced security. 3. Collateralized mortgage obligations -Fair value is determined based on quoted market prices and trade data adjusted by subsequent changes in related indices for identical or comparable securities. • Generally Level 1 - actively traded non-callable agency-issued debt securities • Generally Level 2 - callable agency-issued debt securities, agency mortgage pass-through pool securities and collateralized mortgage obligations Other Sovereign Government Obligations Fair value is determined using quoted prices in active markets when available. • Generally Level 1 • Level 2 - if the market is less active or prices are dispersed • Level 3 - in instances where the inputs are unobservable Corporate and Other Debt State and Municipal Securities Fair value is determined using: - recently executed transactions - market price quotations - pricing models that factor in, where applicable, interest rates, bond or CDS spreads and volatility • Generally Level 2 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 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, and default and prepayment rates for each asset category. Valuation levels of RMBS and CMBS indices are used as an additional data point for benchmarking purposes or to price outright index positions. • Generally Level 2 • Level 3 - 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 Auction Rate Securities ("ARS") The Company primarily holds investments in Student Loan Auction Rate Securities (“SLARS”) and Municipal Auction Rate Securities (“MARS”), which are floating rate instruments for which the rates reset through periodic auctions. SLARS are ABS backed by pools of student loans. MARS are municipal bonds often wrapped by municipal bond insurance. The fair value of ARS is primarily determined using recently executed transactions and market price quotations obtained from independent external parties such as vendors and brokers, where available. The Company uses an internally developed methodology to discount for the lack of liquidity and non-performance risk where independent external market data are not available. Inputs that impact the valuation of SLARS are: - independent external market data - recently executed transactions of comparable ARS - 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 - evidence of issuer calls/prepayment SLARS and MARS are presented within ABS and State and municipal securities, respectively, in the fair value hierarchy table. • Generally Level 2 - as the valuation technique relies on observable external data Corporate Bonds Fair value is determined using: - recently executed transactions - market price quotations (where observable) - bond spreads - CDS 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 CDS spreads and recovery rates as significant inputs. • Generally Level 2 • Level 3 - if prices, spreads or any of the other aforementioned key inputs are unobservable Collateralized Debt Obligations ("CDO") and Collateralized Loan Obligations ("CLO") The Company holds cash CDOs/CLOs that typically reference a tranche of an underlying synthetic portfolio of single name CDS spreads collateralized by corporate bonds (“credit-linked notes”) or cash portfolio of asset-backed securities/loans (“asset-backed CDOs/CLOs”). 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/CLOs 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/CLO position is evaluated independently taking into consideration available comparable market levels, underlying collateral performance and pricing, deal structures and liquidity. • Level 2 - when either the credit correlation input is insignificant or comparable market transactions are observable • Level 3 - when either the credit correlation input is deemed to be significant or comparable market transactions are unobservable Loans and Lending Commitments Corporate Loans and Lending Commitments Fair value of corporate loans is determined using: - recently executed transactions - market price quotations (where observable) - implied yields from comparable debt - market observable CDS 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. • Level 2 - if value based on observable market data for identical or comparable instruments • Level 3 - in instances where prices or significant spread inputs are unobservable Mortgage Loans Fair value is determined 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, fair value is estimated 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. • Level 2 - if value is based on observable market data for identical or comparable instruments • Level 3 - if 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 Corporate Equities Exchange-Traded Equity Securities Fair value is generally determined based on quoted prices from the exchange. To the extent these securities are actively traded, valuation adjustments are not applied. • Level 1 - if actively traded • Level 2 or Level 3 - if not actively traded Unlisted Equity Securities Fair value is determined 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. • Generally Level 3 Fund Units Listed fund units are generally marked to the exchange-traded price. Listed fund units if not actively traded and unlisted fund units are generally marked to NAV. • Level 1 - listed fund units if actively traded on an exchange Certain fund units that are measured at fair value using the NAV per share are not classified in 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. Listed derivatives that are not actively traded are valued using the same approaches as those applied to OTC derivatives. • Level 1 - listed derivatives that are actively traded • Level 2 - listed derivatives that are not actively traded 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 CDS. In the case of more established derivative products, the pricing models used by the Company are widely accepted by the financial services industry. 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 CDS on certain mortgage-backed or asset-backed securities and basket CDS, where direct trading activity or quotes are unobservable. Derivative interests in CDS 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 a 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 CDS, 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. 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. For further information on the valuation techniques for OTC derivative products, see Note 2. For further information on derivative instruments and hedging activities, see Note 4. • Generally Level 2 - OTC derivative products valued using pricing models; basket CDS if the correlation input is not deemed to be significant; commodity derivatives • Level 3 - OTC derivative products with significant unobservable inputs; basket CDS if the correlation input is deemed to be significant; commodity derivatives in instances where significant inputs are unobservable Investments 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. k 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 its best estimate of fair value. k 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. • Level 1 - exchange-traded direct equity investments in an active market • Level 2 - non-exchange-traded direct equity investments and investments in private equity and real estate funds if valued based on rounds of financing or third-party transactions; exchange-traded direct equity investments if not actively traded • Level 3 - non-exchange-traded direct equity investments and investments in private equity and real estate funds where rounds of financing or third-party transactions are not available Certain investments that are measured at fair value using the NAV per share are not classified in the fair value hierarchy. For additional disclosure about such investments, see “Fair Value of Investments Measured at Net Asset Value” herein. Physical Commodities The Company trades various physical commodities, including crude oil and refined products, natural gas, base and precious metals, and agricultural products. k Fair value is determined using observable inputs, including broker quotations and published indices. • Generally Level 2 k • Level 3 - in instances where significant inputs are unobservable Investment Securities AFS Securities AFS securities 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 ABS, auto loan ABS, corporate bonds, CLOs and actively traded equity securities. For further information on the determination of fair value, refer to the corresponding asset/liability valuation technique described herein. For further information on AFS securities, see Note 5. • Generally Level 1 - actively traded U.S. Treasury securities, non-callable agency-issued debt securities and equity securities • Generally Level 2 - callable agency-issued debt securities, agency mortgage pass-through securities, collateralized mortgage obligations, CMBS, FFELP student loan ABS, auto loan ABS, corporate bonds and CLOs Deposits Certificates of Deposit The Company issues Federal Deposit Insurance Corporation ("FDIC") insured certificates of deposit that pay either fixed coupons or that have repayment terms linked to the performance of debt or equity securities, indices or currencies. The fair value of these certificates of deposit is determined using valuation models that incorporate observable inputs referencing identical or comparable securities, including: - prices to which the deposits are linked - interest rate yield curves - option volatility and currency rates - equity prices - the impact of the Company’s own credit spreads, adjusted for the impact of the FDIC insurance, which is based on vanilla deposit issuance rates • Generally Level 2 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: k - 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 observed secondary bond market spreads. • Generally Level 2 Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase Fair value 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. • Generally Level 2 • Level 3 - in instances where the unobservable inputs are deemed significant |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis. Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting Balance at December 31, 2015 (dollars in millions) Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 17,658 $ — $ — $ — $ 17,658 U.S. agency securities 797 17,886 — — 18,683 Total U.S. government and agency securities 18,455 17,886 — — 36,341 Other sovereign government obligations 13,559 7,400 4 — 20,963 Corporate and other debt: State and municipal securities — 1,651 19 — 1,670 Residential mortgage-backed securities — 1,456 341 — 1,797 Commercial mortgage-backed securities — 1,520 72 — 1,592 Asset-backed securities — 494 25 — 519 Corporate bonds — 9,959 267 — 10,226 Collateralized debt and loan obligations — 284 430 — 714 Loans and lending commitments(1) — 4,682 5,936 — 10,618 Other debt — 2,263 448 — 2,711 Total corporate and other debt — 22,309 7,538 — 29,847 Corporate equities(2) 106,296 379 433 — 107,108 Derivative and other contracts: Interest rate contracts 406 323,586 2,052 — 326,044 Credit contracts — 22,258 661 — 22,919 Foreign exchange contracts 55 64,608 292 — 64,955 Equity contracts 653 38,552 1,084 — 40,289 Commodity contracts 3,140 10,654 3,358 — 17,152 Other — 219 — — 219 Netting(3) (3,840) (380,443) (3,120) (55,562) (442,965) Total derivative and other contracts 414 79,434 4,327 (55,562) 28,613 Investments(4): Principal investments 20 44 486 — 550 Other 163 310 221 — 694 Total investments 183 354 707 — 1,244 Physical commodities — 321 — — 321 Total trading assets(4) 138,907 128,083 13,009 (55,562) 224,437 AFS securities 34,351 32,408 — — 66,759 Securities received as collateral 11,221 3 1 — 11,225 Securities purchased under agreements to resell — 806 — — 806 Intangible assets — — 5 — 5 Total assets measured at fair value $ 184,479 $ 161,300 $ 13,015 $ (55,562) $ 303,232 Liabilities at Fair Value Deposits $ — $ 106 $ 19 $ — $ 125 Short-term borrowings — 1,647 1 — 1,648 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 12,932 — — — 12,932 U.S. agency securities 854 127 — — 981 Total U.S. government and agency securities 13,786 127 — — 13,913 Other sovereign government obligations 10,970 2,558 — — 13,528 Corporate and other debt: Commercial mortgage-backed securities — 2 — — 2 Corporate bonds — 5,035 — — 5,035 Lending commitments — 3 — — 3 Other debt — 5 4 — 9 Total corporate and other debt — 5,045 4 — 5,049 Corporate equities(2) 47,123 35 17 — 47,175 Derivative and other contracts: Interest rate contracts 466 305,151 1,792 — 307,409 Credit contracts — 22,160 1,505 — 23,665 Foreign exchange contracts 22 65,177 151 — 65,350 Equity contracts 570 42,447 3,115 — 46,132 Commodity contracts 3,012 9,431 2,308 — 14,751 Other — 43 — — 43 Netting(3) (3,840) (380,443) (3,120) (40,473) (427,876) Total derivative and other contracts 230 63,966 5,751 (40,473) 29,474 Total trading liabilities 72,109 71,731 5,772 (40,473) 109,139 Obligation to return securities received as collateral 19,312 3 1 — 19,316 Securities sold under agreements to repurchase — 532 151 — 683 Other secured financings — 2,393 461 — 2,854 Long-term borrowings — 31,058 1,987 — 33,045 Total liabilities measured at fair value $ 91,421 $ 107,470 $ 8,392 $ (40,473) $ 166,810 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting Balance at December 31, 2014 (dollars in millions) Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 16,961 $ — $ — $ — $ 16,961 U.S. agency securities 850 18,193 — — 19,043 Total U.S. government and agency securities 17,811 18,193 — — 36,004 Other sovereign government obligations 15,149 7,888 41 — 23,078 Corporate and other debt: State and municipal securities — 2,049 — — 2,049 Residential mortgage-backed securities — 1,991 175 — 2,166 Commercial mortgage-backed securities — 1,484 96 — 1,580 Asset-backed securities — 583 76 — 659 Corporate bonds — 15,800 386 — 16,186 Collateralized debt and loan obligations — 741 1,152 — 1,893 Loans and lending commitments(1) — 6,088 5,874 — 11,962 Other debt — 2,167 285 — 2,452 Total corporate and other debt — 30,903 8,044 — 38,947 Corporate equities(2) 112,490 1,357 272 — 114,119 Derivative and other contracts: Interest rate contracts 663 495,026 2,484 — 498,173 Credit contracts — 30,813 1,369 — 32,182 Foreign exchange contracts 83 72,769 249 — 73,101 Equity contracts(5) 571 45,967 1,586 — 48,124 Commodity contracts 4,105 18,042 2,268 — 24,415 Other — 376 — — 376 Netting(3) (4,910) (564,127) (4,220) (66,720) (639,977) Total derivative and other contracts 512 98,866 3,736 (66,720) 36,394 Investments(4): Principal investments 58 3 835 — 896 Other 225 198 323 — 746 Total investments 283 201 1,158 — 1,642 Physical commodities — 1,608 — — 1,608 Total trading assets(4) 146,245 159,016 13,251 (66,720) 251,792 AFS securities 37,200 32,016 — — 69,216 Securities received as collateral 21,265 51 — — 21,316 Securities purchased under agreements to resell — 1,113 — — 1,113 Intangible assets — — 6 — 6 Total assets measured at fair value $ 204,710 $ 192,196 $ 13,257 $ (66,720) $ 343,443 Liabilities at Fair Value Short-term borrowings $ — $ 1,765 $ — $ — $ 1,765 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 14,199 — — — 14,199 U.S. agency securities 1,274 85 — — 1,359 Total U.S. government and agency securities 15,473 85 — — 15,558 Other sovereign government obligations 11,653 2,109 — — 13,762 Corporate and other debt: State and municipal securities — 1 — — 1 Corporate bonds — 5,943 78 — 6,021 Lending commitments — 10 5 — 15 Other debt — 63 38 — 101 Total corporate and other debt — 6,017 121 — 6,138 Corporate equities(2) 31,340 326 45 — 31,711 Derivative and other contracts: Interest rate contracts 602 469,319 2,657 — 472,578 Credit contracts — 29,997 2,112 — 32,109 Foreign exchange contracts 21 72,233 98 — 72,352 Equity contracts(5) 416 51,405 3,751 — 55,572 Commodity contracts 4,817 15,584 1,122 — 21,523 Other — 172 — — 172 Netting(3) (4,910) (564,127) (4,220) (40,837) (614,094) Total derivative and other contracts 946 74,583 5,520 (40,837) 40,212 Total trading liabilities 59,412 83,120 5,686 (40,837) 107,381 Obligation to return securities received as collateral 25,629 56 — — 25,685 Securities sold under agreements to repurchase — 459 153 — 612 Other secured financings — 4,355 149 — 4,504 Long-term borrowings — 29,840 1,934 — 31,774 Total liabilities measured at fair value $ 85,041 $ 119,595 $ 7,922 $ (40,837) $ 171,721 _____________ (1) At December 31, 2015, Loans and lending commitments held at fair value consisted of $ 7,286 million of corporate loans, $ 1,885 million of residential real estate loans and $ 1,447 million of wholesale real estate loans. At December 31, 2014, Loans and lending commitments held at fair value consisted of $ 7,093 million of corporate loans, $ 1,682 million of residential real estate loans and $ 3,187 million of wholesale real estate loans. (2) For trading purposes, the Company holds or se lls short equity securities issued by entities in diverse industries and of varying sizes . (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 includ ed 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 shared level. For further information on derivative instruments and hedging activities, see Note 4. (4 ) Amounts exclude c ertain investments that are measured at fair value using the NAV per share, which are not classified in the fair value hierarchy. At December 31, 2015 and December 31, 2014, the f air value of these investments was $ 3,843 million and $ 5,009 million, respectively. For additional disclosure about such investments, see “Fair Value of Investments Measured at Net Asset Value” herein. (5) The balance of Level 3 ass et derivative equity contracts increased by $ 57 million with a corresponding decrease in the balance of Level 2 asset derivative equity contracts, and the balance of Level 3 liability derivative equity contracts increased by $ 842 million with a correspondi ng decrease in the balance of Level 2 liability derivative equity contracts to correct the fair value level assigned to these contracts at December 31, 2014. The total amount of asset and liability derivative equity contracts remained unchanged. |
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | Roll-forward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis. Beginning Balance at December 31, 2014 Total Realized and Unrealized Gains (Losses)(1) Purchases (2) Sales Issuances Settlements Net Transfers Ending Balance at December 31, 2015 Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at December 31, 2015 (dollars in millions) Assets at Fair Value Trading assets: Other sovereign government obligations $ 41 $ (1) $ 2 $ (30) $ — $ — $ (8) $ 4 $ — Corporate and other debt: State and municipal securities — 2 3 — — — 14 19 2 Residential mortgage-backed securities 175 24 176 (83) — — 49 341 12 Commercial mortgage-backed securities 96 (28) 27 (23) — — — 72 (32) Asset-backed securities 76 (9) 23 (30) — — (35) 25 — Corporate bonds 386 (44) 374 (381) — (53) (15) 267 (44) Collateralized debt and loan obligations 1,152 123 325 (798) — (344) (28) 430 (19) Loans and lending commitments 5,874 (42) 3,216 (207) — (2,478) (427) 5,936 (76) Other debt 285 (23) 131 (5) — (81) 141 448 (9) Total corporate and other debt 8,044 3 4,275 (1,527) — (2,956) (301) 7,538 (166) Corporate equities 272 (1) 373 (333) — — 122 433 11 Net derivative and other contracts(3): Interest rate contracts (173) (51) 58 — (54) 207 273 260 20 Credit contracts (743) (172) 19 — (121) 196 (23) (844) (179) Foreign exchange contracts 151 53 4 — (2) (18) (47) 141 52 Equity contracts(4) (2,165) 166 81 (1) (310) 22 176 (2,031) 62 Commodity contracts 1,146 433 35 — (222) (116) (226) 1,050 402 Total net derivative and other contracts (1,784) 429 197 (1) (709) 291 153 (1,424) 357 Investments: Principal investments 835 11 32 (133) — (188) (71) 486 6 Other 323 (12) 1 (6) — — (85) 221 (7) Securities received as collateral — — 1 — — — — 1 — Intangible assets 6 — — — — (1) — 5 — Liabilities at Fair Value Deposits $ — $ (1) $ — $ — $ 18 $ — $ — $ 19 $ (1) Short-term borrowings — — — — 1 — — 1 — Trading liabilities: Corporate and other debt: Corporate bonds 78 — (19) 6 — (65) — — — Lending commitments 5 5 — — — — — — 5 Other debt 38 — (1) 7 — (39) (1) 4 — Total corporate and other debt 121 5 (20) 13 — (104) (1) 4 5 Corporate equities 45 79 (86) 32 — — 105 17 79 Obligation to return securities received as collateral — — — 1 — — — 1 — Securities sold under agreements to repurchase 153 2 — — — — — 151 2 Other secured financings 149 192 — — 327 (232) 409 461 181 Long-term borrowings 1,934 61 — — 881 (364) (403) 1,987 52 Beginning Balance at December 31, 2013 Total Realized and Unrealized Gains (Losses)(1) Purchases (2) Sales Issuances Settlements Net Transfers Ending Balance at December 31, 2014 Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at December 31, 2014 (dollars in millions) Assets at Fair Value Trading assets: Other sovereign government obligations $ 27 $ 1 $ 48 $ (34) $ — $ — $ (1) $ 41 $ — Corporate and other debt: Residential mortgage-backed securities 47 9 105 (14) — — 28 175 4 Commercial mortgage-backed securities 108 65 16 (102) — — 9 96 45 Asset-backed securities 103 3 66 (96) — — — 76 9 Corporate bonds 522 86 106 (306) — — (22) 386 66 Collateralized debt and loan obligations 1,468 142 644 (964) — (143) 5 1,152 27 Loans and lending commitments 5,129 (87) 3,784 (415) — (2,552) 15 5,874 (191) Other debt 27 21 274 (35) — (2) — 285 20 Total corporate and other debt 7,404 239 4,995 (1,932) — (2,697) 35 8,044 (20) Corporate equities 190 20 146 (102) — — 18 272 (3) Net derivative and other contracts(3)(5): Interest rate contracts 113 (258) 18 — (14) (43) 11 (173) (349) Credit contracts (147) (408) 68 — (179) (15) (62) (743) (474) Foreign exchange contracts 68 (13) 7 — — 108 (19) 151 (17) Equity contracts(4) (831) (527) 339 (2) (562) (46) (536) (2,165) (600) Commodity contracts 880 158 287 — (52) (127) — 1,146 72 Other (4) — — — — 4 — — — Total net derivative and other contracts 79 (1,048) 719 (2) (807) (119) (606) (1,784) (1,368) Investments: Principal investments 2,160 53 36 (181) — (1,258) 25 835 49 Other 538 17 17 (29) — — (220) 323 24 Intangible assets 8 — — — — (2) — 6 (1) Liabilities at Fair Value Short-term borrowings $ 1 $ — $ — $ — $ — $ (1) $ — $ — $ — Trading liabilities: Corporate and other debt: Corporate bonds 22 1 (46) 117 — — (14) 78 2 Lending commitments 2 (3) — — — — — 5 (3) Other debt 48 7 (8) — — — 5 38 (2) Total corporate and other debt 72 5 (54) 117 — — (9) 121 (3) Corporate equities 8 — (3) 39 — — 1 45 — Securities sold under agreements to repurchase 154 1 — — — — — 153 1 Other secured financings 278 (9) — — 21 (201) 42 149 (6) Long-term borrowings 1,887 109 — — 791 (391) (244) 1,934 102 Beginning Balance at December 31, 2012 Total Realized and Unrealized Gains (Losses)(1) Purchases (2) Sales Issuances Settlements Net Transfers Ending Balance at December 31, 2013 Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at December 31, 2013 (dollars in millions) Assets at Fair Value Trading assets: Other sovereign government obligations $ 6 $ (18) $ 41 $ (7) $ — $ — $ 5 $ 27 $ (18) Corporate and other debt: Residential mortgage-backed securities 45 25 54 (51) — — (26) 47 (6) Commercial mortgage-backed securities 232 13 57 (187) — (7) — 108 4 Asset-backed securities 109 — 6 (12) — — — 103 — Corporate bonds 660 (20) 324 (371) — (19) (52) 522 (55) Collateralized debt and loan obligations 1,951 363 742 (960) — (626) (2) 1,468 131 Loans and lending commitments 4,694 (130) 3,744 (448) — (3,096) 365 5,129 (199) Other debt 45 (1) 20 (36) — — (1) 27 (2) Total corporate and other debt 7,736 250 4,947 (2,065) — (3,748) 284 7,404 (127) Corporate equities 288 (63) 113 (127) — — (21) 190 (72) Net derivative and other contracts(3): Interest rate contracts (82) 28 6 — (34) 135 60 113 36 Credit contracts 1,822 (1,674) 266 — (703) (295) 437 (147) (1,723) Foreign exchange contracts (359) 130 — — — 281 16 68 124 Equity contracts (1,144) 463 170 (74) (318) (11) 83 (831) 61 Commodity contracts 709 200 41 — (36) (29) (5) 880 174 Other (7) (6) — — — 9 — (4) (7) Total net derivative and other contracts 939 (859) 483 (74) (1,091) 90 591 79 (1,335) Investments: Principal investments 2,833 110 111 (445) — — (449) 2,160 3 Other 486 76 13 (36) — — (1) 538 77 Intangible assets 7 9 — — — (8) — 8 3 Liabilities at Fair Value Short-term borrowings $ 19 $ — $ — $ — $ — $ (1) $ (17) $ 1 $ — Trading liabilities: Corporate and other debt: Residential mortgage-backed securities 4 4 — — — — — — 4 Corporate bonds 177 28 (64) 43 — — (106) 22 28 Lending commitments 46 44 — — — — — 2 44 Other debt 49 2 — 5 — (6) 2 48 2 Total corporate and other debt 276 78 (64) 48 — (6) (104) 72 78 Corporate equities 5 1 (26) 29 — — 1 8 3 Securities sold under agreements to repurchase 151 (3) — — — — — 154 (3) Other secured financings 406 11 — — 19 (136) — 278 4 Long-term borrowings 2,789 (162) — — 877 (606) (1,335) 1,887 (138) ___________ (1 ) Total realized and unrealized gains (losses) are primarily included in Trading revenues in the consolidated statements of income except for Trading assets—Investments, which is included in Investments revenues. (2) Loan originations are included in purchases. (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 activiti es, see Note 4 . (4) Net liability Level 3 derivative equity contracts increased by $ 785 million to correct the fair value level assigned to these contracts at December 31, 2014. The total amount of derivative equity contracts remained unchanged a t December 31, 2014. (5) During 2014, the Company incurred a charge of approximately $ 468 million related to the implementation of FVA, w hich was recognized in Trading revenues. For further information on the implementation of FVA, see Note 2 . |
Quantitative Information about and Sensitivity of Significant Unobservable Inputs used in Recurring Level 3 Fair Value Measurements | Balance at December 31, 2015 Valuation Technique(s) / Significant Unobservable Input(s) / Sensitivity of the Fair Value to Changes in the Unobservable Inputs Range(1) Averages(2) (dollars in millions) Assets at Fair Value Trading assets: Corporate and other debt: Residential mortgage-backed securities $ 341 Comparable pricing: Comparable bond price / (A) 0 to 75 points 32 points Commercial mortgage-backed securities 72 Comparable pricing: Comparable bond price / (A) 0 to 9 points 2 points Corporate bonds 267 Comparable pricing(3): Comparable bond price / (A) 3 to 119 points 90 points Comparable pricing: EBITDA multiple / (A) 7 to 9 times 8 times Structured bond model: Discount rate / (C) 15% 15% Collateralized debt and loan obligations 430 Comparable pricing(3): Comparable bond price / (A) 47 to 103 points 67 points Correlation model: Credit correlation / (B) 39% to 60% 49% Loans and lending commitments 5,936 Corporate loan model: Credit spread / (C) 250 to 866 bps 531 bps Margin loan model(3): Credit spread / (C)(D) 62 to 499 bps 145 bps Volatility skew / (C)(D) 14% to 70% 33% Discount rate / (C)(D) 1% to 4% 2% Option model: Volatility skew / (C) -1% -1% Comparable pricing: Comparable loan price / (A) 35 to 100 points 88 points Discounted cash flow: Implied weighted average cost of capital / (C)(D) 6% to 8% 7% Capitalization rate / (C)(D) 4% to 10% 4% Other debt 448 Comparable pricing: Comparable loan price / (A) 4 to 84 points 59 points Comparable pricing: Comparable bond price / (A) 8 points 8 points Option model: At the money volatility / (C) 16% to 53% 53% Margin loan model(3): Discount rate / (C) 1% 1% Corporate equities 433 Comparable pricing: Comparable price / (A) 50% to 80% 72% Comparable pricing(3): Comparable equity price / (A) 100% 100% Market approach: EBITDA multiple / (A) 9 times 9 times Net derivative and other contracts(4): Interest rate contracts 260 Option model: Interest rate volatility concentration liquidity multiple / (C)(D) 0 to 3 times 2 times Interest rate - Foreign exchange correlation / (C)(D) 25% to 62% 43% / 43% (5) Interest rate volatility skew / (A)(D) 29% to 82% 43% / 40% (5) Interest rate quanto correlation / (A)(D) -8% to 36% 5% / -6% (5) Interest rate curve correlation / (C)(D) 24% to 95% 60% / 69% (5) Inflation volatility / (A)(D) 58% 58% / 58% (5) Interest rate - Inflation correlation / (A)(D) -41% to -39% -41% / -41% (5) Credit contracts (844) Comparable pricing: Cash synthetic basis / (C)(D) 5 to 12 points 9 points Comparable bond price / (C)(D) 0 to 75 points 24 points Correlation model(3): Credit correlation / (B) 39% to 97% 57% Foreign exchange contracts(6) 141 Option model: Interest rate - Foreign exchange correlation / (C)(D) 25% to 62% 43% / 43% (5) Interest rate volatility skew / (A)(D) 29% to 82% 43% / 40% (5) Interest rate curve / (A)(D) 0% 0% / 0% (5) Equity contracts(6) (2,031) Option model: At the money volatility / (A)(D) 16% to 65% 32% Volatility skew / (A)(D) -3% to 0% -1% Equity - Equity correlation / (C)(D) 40% to 99% 71% Equity - Foreign exchange correlation / (A)(D) -60% to -11% -39% Equity - Interest rate correlation / (C)(D) -29% to 50% 16% / 8% (5) Commodity contracts 1,050 Option model: Forward power price / (C)(D) $3 to $91 per $32 per megawatt hour megawatt hour Commodity volatility / (A)(D) 10% to 92% 18% Cross commodity correlation / (C)(D) 43% to 99% 93% Investments: Principal investments 486 Discounted cash flow: Implied weighted average cost of capital / (C)(D) 16% 16% Exit multiple / (A)(D) 8 to 14 times 9 times Capitalization rate / (C)(D) 5% to 9% 6% Equity discount rate / (C)(D) 20% to 35% 26% Market approach(3): EBITDA multiple / (A)(D) 8 to 20 times 11 times Forward capacity price / (A)(D) $5 to $9 $7 Comparable pricing: Comparable equity price / (A) 43% to 100% 81% Other 221 Discounted cash flow: Implied weighted average cost of capital / (C)(D) 10% 10% Exit multiple / (A)(D) 13 times 13 times Market approach: EBITDA multiple / (A) 7 to 14 times 12 times Comparable pricing(3): Comparable equity price / (A) 100% 100% Liabilities at Fair Value Securities sold under agreements to repurchase 151 Discounted cash flow: Funding spread / (A) 86 to 116 bps 105 bps Other secured financings 461 Option model: Volatility skew / (C) -1% -1% Discounted cash flow(3): Discount rate / (C) 4% to 13% 4% Discounted cash flow: Funding spread / (A) 95 to 113 bps 104 bps Long-term borrowings 1,987 Option model(3): At the money volatility / (C)(D) 20% to 50% 29% Volatility skew / (A)(D) -1% to 0% -1% Equity - Equity correlation / (A)(D) 40% to 97% 77% Equity - Foreign exchange correlation / (C)(D) -70% to -11% -39% Option model: Interest rate volatility skew / (A)(D) 50% 50% Equity volatility discount / (A)(D) 10% 10% Correlation model: Credit correlation / (B) 40% to 60% 52% Comparable pricing: Comparable equity price / (A) 100% 100% Valuation Technique(s) / Significant Unobservable Input(s) / Balance at Sensitivity of the Fair Value to Changes December 31, 2014 in the Unobservable Inputs Range(1) Averages(2) (dollars in millions) Assets at Fair Value Trading assets: Corporate and other debt: Residential mortgage-backed securities $ 175 Comparable pricing: Comparable bond price / (A) 3 to 90 points 15 points Commercial mortgage-backed securities 96 Comparable pricing: Comparable bond price / (A) 0 to 7 points 1 point Asset-backed securities 76 Comparable pricing: Comparable bond price / (A) 0 to 62 points 23 points Corporate bonds 386 Comparable pricing: Comparable bond price / (A) 1 to 160 points 90 points Collateralized debt and loan obligations 1,152 Comparable pricing(3): Comparable bond price / (A) 20 to 100 points 66 points Correlation model: Credit correlation / (B) 47% to 65% 56% Loans and lending commitments 5,874 Corporate loan model: Credit spread / (C) 36 to 753 bps 373 bps Margin loan model: Credit spread / (C)(D) 150 to 451 bps 216 bps Volatility skew / (C)(D) 3% to 37% 21% Discount rate / (C)(D) 2% to 3% 3% Option model: Volatility skew / (C) -1% -1% Comparable pricing(3): Comparable loan price / (A) 15 to 105 points 89 points Other debt 285 Comparable pricing(3): Comparable loan price / (A) 0 to 75 points 39 points Comparable pricing: Comparable bond price / (A) 15 points 15 points Option model: At the money volatility / (A) 15% to 54% 15% Corporate equities 272 Net asset value: Discount to net asset value / (C) 0% to 71% 36% Comparable pricing: Comparable price / (A) 83% to 96% 85% Comparable pricing(3): Comparable equity price / (A) 100% 100% Market approach: EBITDA multiple / (A)(D) 6 to 9 times 8 times Price / Book ratio / (A)(D) 0 times 0 times Net derivative and other contracts(4): Interest rate contracts (173) Option model: Interest rate volatility concentration liquidity multiple / (C)(D) 0 to 3 times 2 times Interest rate - Foreign exchange correlation / (A)(D) 28% to 62% 44% / 42%(5) Interest rate volatility skew / (A)(D) 38% to 104% 86% / 60%(5) Interest rate quanto correlation / (A)(D) -9% to 35% 6% / -6%(5) Interest rate curve correlation / (A)(D) 44% to 87% 73% / 80%(5) Inflation volatility / (A)(D) 69% to 71% 70% / 71%(5) Interest rate - Inflation correlation / (A)(D) -44% to -40% -42% / -43%(5) Credit contracts (743) Comparable pricing: Cash synthetic basis / (C)(D) 5 to 13 points 9 points Comparable bond price / (C)(D) 0 to 55 points 18 points Correlation model(3): Credit correlation / (B) 42% to 95% 63% Foreign exchange contracts(6) 151 Option model: Interest rate quanto correlation / (A)(D) -9% to 35% 6% / -6%(5) Interest rate - Credit spread correlation / (A)(D) -54% to -2% -17% / -11%(5) Interest rate curve correlation / (A)(D) 44% to 87% 73% / 80%(5) Interest rate - Foreign exchange correlation / (A)(D) 28% to 62% 44% / 42%(5) Interest rate curve / (A)(D) 0% to 2% 1% / 1%(5) Equity contracts(6)(7) (2,165) Option model: At the money volatility / (A)(D) 14% to 51% 29% Volatility skew / (A)(D) -2% to 0% -1% Equity - Equity correlation / (C)(D) 40% to 99% 72% Equity - Foreign exchange correlation / (C)(D) -50% to 10% -16% Equity - Interest rate correlation / (C)(D) -18% to 81% 26% / 11%(5) Commodity contracts 1,146 Option model: Forward power price / (C)(D) $5 to $106 per $38 per megawatt hour megawatt hour Commodity volatility / (A)(D) 11% to 90% 19% Cross commodity correlation / (C)(D) 33% to 100% 93% Investments: Principal investments 835 Discounted cash flow: Implied weighted average cost of capital / (C)(D) 11% 11% Exit multiple / (A)(D) 10 times 10 times Discounted cash flow: Equity discount rate / (C) 25% 25% Market approach(3): EBITDA multiple / (A)(D) 4 to 14 times 10 times Price / Earnings ratio / (A)(D) 23 times 23 times Forward capacity price / (A)(D) $5 to $7 $7 Comparable pricing: Comparable equity price / (A) 64% to 100% 95% Other 323 Discounted cash flow: Implied weighted average cost of capital / (C)(D) 10% to 13% 11% Exit multiple / (A)(D) 6 to 9 times 9 times Market approach: EBITDA multiple / (A)(D) 9 to 13 times 10 times Comparable pricing(3): Comparable equity price / (A) 100% 100% Liabilities at Fair Value Trading liabilities: Corporate and other debt: Corporate bonds $ 78 Option model: Volatility skew / (C)(D) -1% -1% At the money volatility / (C)(D) 10% 10% Securities sold under agreements to repurchase 153 Discounted cash flow: Funding spread / (A) 75 to 91 bps 86 bps Other secured financings 149 Comparable pricing: Comparable bond price / (A) 99 to 101 points 100 points Discounted cash flow(3): Funding spread / (A) 82 to 98 bps 95 bps Long-term borrowings 1,934 Option model(3): At the money volatility / (C)(D) 18% to 32% 27% Volatility skew / (A)(D) -1% to 0% 0% Equity - Equity correlation / (A)(D) 40% to 90% 68% Equity - Foreign exchange correlation / (C)(D) -73% to 30% -32% Option model: Equity alpha / (A) 0% to 94% 67% Correlation model: Credit correlation / (B) 48% to 65% 51% ________________ bps—Basis points. EBITDA— Earnings before interest, taxes, depreciation and amortization. (1) The range of significant unobservable inputs is represented in points, percentages, basis points, times or megawatt hours. Points are a percentage of par; for example, 75 points would be 75 % of par. A basis point equals 1/100th of 1%; for example, 866 bps would equal 8.66 %. (2) Amounts represent weighted averages except where simple averages and the median of the inputs are provided (see footnote 5 below). Weighted averages are calculated by weighting each input by the fair value of the respective financial instruments except for collateralized debt and loan obligations, princi pal investments, other debt, corporate bonds, long-term borrowings and derivative instruments where some or all inputs are weighted by risk. (3) This is the predominant valuation technique for this major asset or liability class. (4) Credit valuation adjus tments (“CVA”) and FVA are included in the balance but excluded from the Valuation Technique(s) and Significant Unobservable Input(s) in the table above. CVA is a Level 3 input when the underlying counterparty credit curve is unobservable. FVA is a Level 3 input in its entirety given the lack of observability of funding spreads in the principal market. (5) The data structure of the significant unobservable inputs used in valuing interest rate contracts, foreign exchange contracts and certain equity contract s 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. (6) Includes derivative contracts with multiple risks ( i.e., hybrid products). (7) Net liability Level 3 derivative equity contracts increased by $ 785 million to correct the fair value level assigned to these contracts at December 31, 2014. This correction did not result in a change to the Valuation Technique ( s ) , Signifi cant Unobservable Inputs, Range or Averages. 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 red istribution 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 lo wer (higher) fair value measurement. (D) There are no predictable relationships between the significant unobservable inputs. |
Fair Value of Investments that Calculate Net Asset Value | Investments in Certain Funds Measured at NAV per Share . At December 31, 2015 At December 31, 2014 Fair Value Commitment Fair Value Commitment (dollars in millions) Private equity funds $ 1,917 $ 538 $ 2,569 $ 613 Real estate funds 1,337 128 1,753 112 Hedge funds(1): Long-short equity hedge funds 422 ─ 433 ─ Fixed income/credit-related hedge funds 71 ─ 76 ─ Event-driven hedge funds 2 ─ 39 ─ Multi-strategy hedge funds 94 4 139 3 Total $ 3,843 $ 670 $ 5,009 $ 728 (1 ) Fixed income/credit-related hedge funds, event-driven hedge funds and multi-strategy hedge funds are redeemable at least on a three-month period basis, primarily with a notice period of 90 days or less . At December 31, 2015 , approximately 34 % of the fair value amount of long-short equity hedge funds was redeemable at least quarterly, 51 % is redeemable every six months and 15 % of these funds have a redemption frequency of greater than six months. At December 31, 2014 , approximately 36 % of the fair value amount of long-short equity hedge funds was redeemable at least quarterly, 47 % is redeemable every six months and 17 % of these funds have a redemption frequency of greater than six months. The notice period for long-short equity hedge funds at December 31, 2015 and December 31, 2014 was primarily greater than six months. At December 31, 2015 Fund Type Less than 5 years 5-10 years Over 10 years Total (dollars in millions) Private equity funds $ 142 $ 1,095 $ 680 $ 1,917 Real estate funds 128 753 456 1,337 At December 31, 2015 Hedge Fund Type Fair Value (dollars in millions) Long-short equity(1) $ 422 Fixed income/credit-related(2) 71 Event-driven 2 Multi-strategy(3)(4) 94 (1 ) Investments representing approximately 12 % of the fair value of investments 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 December 31, 2015. (2) Investments representing approximately 80 % of the fair value of investments 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 December 31, 2015. (3) Investments representing approximately 16 % of the fair value of investments cannot be redeemed currently because the investments include certain initial period l ock-up restrictions. The remaining restriction period subject to lock-up restrictions was primarily over three years at December 31, 2015. (4) Investments representing approximately 3 % of the fair value of investments cannot be redeemed currently because a n exit restriction has been imposed by the hedge fund manager. The restriction period for these investments subject to an exit restriction was indefinite at December 31, 2015. |
Net Gains (Losses) Due to Changes in Fair Value for Items Measured at Fair Value Pursuant to the Fair Value Option Election | Impact on Earnings of Transactions Under the Fair Value Option Election . Interest Gains (Losses) Trading Income Included in Revenues (Expense) Net Revenues (dollars in millions) 2015 Securities purchased under agreements to resell $ (6) $ 10 $ 4 Short-term borrowings(1) 63 ─ 63 Securities sold under agreements to repurchase 13 (6) 7 Long-term borrowings(1) 2,404 (528) 1,876 2014 Securities purchased under agreements to resell $ (4) $ 9 $ 5 Short-term borrowings(1) (136) 1 (135) Securities sold under agreements to repurchase (5) (6) (11) Long-term borrowings(1) 1,867 (638) 1,229 2013 Securities purchased under agreements to resell $ (1) $ 6 $ 5 Deposits 52 (60) (8) Short-term borrowings(1) 181 (8) 173 Securities sold under agreements to repurchase (3) (6) (9) Long-term borrowings(1) 664 (971) (307) Of the total gains (losses) recorded in Trading revenues for short-term and long-term borrowings for 2015 , 2014 and 2013 , $ 618 million, $ 651 million and $ (681) million, respectively, are attributable to changes in the credit quality of the Company and other credit factors, 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 | Business Unit Responsible for Risk Management At December 31, 2015 At December 31, 2014 (dollars in millions) Equity $ 17,789 $ 17,253 Interest rates 14,255 13,545 Credit and foreign exchange 2,266 2,105 Commodities 383 636 Total $ 34,693 $ 33,539 |
Gains (Losses) Due to Changes in Instrument Specific Credit Risk | Gains (Losses) due to Changes in Instrument-Specific Credit Risk . 2015 2014 2013 (dollars in millions) Short-term and long-term borrowings(1) $ 618 $ 651 $ (681) Loans and other debt(2) (193) 179 137 Lending commitments(3) 12 30 255 _____________ (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 its secondary bond market spreads and changes in other credit factors . (2) Loans and other debt 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) on len ding commitments 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 | Net Difference of Contractual Principal Amount Over Fair Value . At December 31, 2015 At December 31, 2014 (dollars in millions) Loans and other debt(1) $ 14,095 $ 14,990 Loans 90 or more days past due and/or on nonaccrual status(1)(2) 11,651 12,916 Short-term and long-term borrowings(3) 508 (670) _____________ (1) The majority of the difference between principal and fair value amounts for loans and other debt emanates from the distressed debt trading business, which purchases distressed debt at amounts well below par. (2) The aggregate fair value of loans that were in nonaccrual status, which includes all loans 90 or more days past due, was $ 1,853 million and $ 1,367 million at December 31, 2015 and December 31, 2014 , respectively. The aggregate fair value of loans that were 90 or more days past due was $ 885 million and $ 643 million at December 31, 2015 and December 31, 2014 , respectively. (3) Short-term and long-term borrowings do not include structured notes where the repayment of the i nitial principal amount fluctuates based on changes in the reference price or index. |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis. Fair Value Measurements Using: Carrying Total Value at Gains (Losses) December 31, for 2015 Level 1 Level 2 Level 3 2015(1) (dollars in millions) Assets: Loans(2) $ 5,850 $ ─ $ 3,400 $ 2,450 $ (220) Other investments(3) ─ ─ ─ ─ (3) Premises, equipment and software costs(4) ─ ─ ─ ─ (44) Other assets(4) 31 ─ 31 ─ (22) Total assets $ 5,881 $ ─ $ 3,431 $ 2,450 $ (289) Liabilities: Other liabilities and accrued expenses(2) $ 476 $ ─ $ 418 $ 58 $ (207) Total liabilities $ 476 $ ─ $ 418 $ 58 $ (207) Fair Value Measurements Using: Carrying Total Value at Gains (Losses) December 31, for 2013 Level 1 Level 2 Level 3 2013(1) (dollars in millions) Loans(2) $ 1,822 $ ─ $ 1,616 $ 206 $ (71) Other investments(3) 46 ─ ─ 46 (38) Premises, equipment and software costs(4) 8 ─ ─ 8 (133) Intangible assets(3) 92 ─ ─ 92 (44) Total assets $ 1,968 $ ─ $ 1,616 $ 352 $ (286) ___________________ (1) Changes in the fair value of Loans and losses related to Other investments are recorded within Other revenues in the consolidated statements of income. Losses related to Premises, equipment and software costs, Intangible assets and Other assets are recorded within Other expenses if not held for sale and within Other revenues if held for sale. Losses related to Other liabilities and accrued expenses are recorded within Other revenues and represent non-recurring fair value adjustments for certain lending commitments designated as held for sale. (2) Non-recurring changes in the fair value of loans and lending commitments 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 compa rable 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) Losses related to O ther investments and Intangible assets were determined primarily using discounted cash flow models and methodologies that incorporate multiples of certain comparable companies. (4) Losses related to Premises, equipment and software costs and Other asse ts were determined primarily using a default recovery analysis. |
Financial Instruments Not Measured at Fair Value | Valuation Techniques for Assets and Liabilities Not Measured at Fair Value. Asset/Liability Valuation Technique The following longer dated instruments: -Securities purchased under agreements to resell -Securities borrowed -Securities sold under agreements to repurchase -Securities loaned -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. HTM securities Fair value is determined using quoted market prices. Loans The fair value of consumer and residential real estate loans and lending commitments where position-specific external price data are not observable is determined 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 and lending commitments is determined using the following: - recently executed transactions - market price quotations (where observable) - implied yields from comparable debt - market observable credit default swap spread levels along with proprietary valuation models and default recovery analysis where such transactions and quotations are unobservable Long-term borrowings The fair value 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. 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. At December 31, 2015 Fair Value Measurements Using: Carrying Value Fair Value Level 1 Level 2 Level 3 (dollars in millions) Financial Assets: Cash and due from banks $ 19,827 $ 19,827 $ 19,827 $ — $ — Interest bearing deposits with banks 34,256 34,256 34,256 — — Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 31,469 31,469 31,469 — — Investment securities—HTM securities 5,224 5,188 998 4,190 — Securities purchased under agreements to resell 86,851 86,837 — 86,186 651 Securities borrowed 142,416 142,414 — 142,266 148 Customer and other receivables(1) 41,676 41,576 — 36,752 4,824 Loans(2) 85,759 86,423 — 19,241 67,182 Financial Liabilities: Deposits $ 155,909 $ 156,163 $ — $ 156,163 $ — Short-term borrowings 525 525 — 525 — Securities sold under agreements to repurchase 36,009 36,060 — 34,150 1,910 Securities loaned 19,358 19,382 — 19,192 190 Other secured financings 6,610 6,610 — 5,333 1,277 Customer and other payables(1) 183,895 183,895 — 183,895 — Long-term borrowings 120,723 123,219 — 123,219 — At December 31, 2014 Fair Value Measurements Using: Carrying Value Fair Value Level 1 Level 2 Level 3 (dollars in millions) Financial Assets: Cash and due from banks $ 21,381 $ 21,381 $ 21,381 $ — $ — Interest bearing deposits with banks 25,603 25,603 25,603 — — Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 40,607 40,607 40,607 — — Investment securities—HTM securities 100 100 100 — — Securities purchased under agreements to resell 82,175 82,165 — 81,981 184 Securities borrowed 136,708 136,708 — 136,696 12 Customer and other receivables(1) 45,116 45,028 — 39,945 5,083 Loans(2) 66,577 67,800 — 18,212 49,588 Financial Liabilities: Deposits $ 133,544 $ 133,572 $ — $ 133,572 $ — Short-term borrowings 496 496 — 496 — Securities sold under agreements to repurchase 69,337 69,433 — 63,921 5,512 Securities loaned 25,219 25,244 — 24,740 504 Other secured financings 7,581 7,881 — 5,465 2,416 Customer and other payables(1) 178,373 178,373 — 178,373 — Long-term borrowings 120,998 124,961 — 124,150 811 ___________________ (1) Accrued interest, fees, and dividend receivables and payables where carrying value approximates fair value have been excluded. (2) Amounts include all loans measured at fair value on a non-recurring basis. |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments Designated and Not Designated as Accounting Hedges by Type of Derivative Contract on a Gross Basis | Derivative Assets at December 31, 2015 Fair Value Notional Bilateral OTC Cleared OTC Exchange Traded Total Bilateral OTC Cleared OTC Exchange Traded Total (dollars in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 2,825 $ 1,442 $ — $ 4,267 $ 36,999 $ 35,362 $ — $ 72,361 Foreign exchange contracts 166 1 — 167 5,996 167 — 6,163 Total derivatives designated as accounting hedges 2,991 1,443 — 4,434 42,995 35,529 — 78,524 Derivatives not designated as accounting hedges(1): Interest rate contracts 220,289 101,276 212 321,777 4,348,002 5,748,525 1,218,645 11,315,172 Credit contracts 19,310 3,609 — 22,919 585,731 139,301 — 725,032 Foreign exchange contracts 64,438 295 55 64,788 1,907,290 13,402 7,715 1,928,407 Equity contracts 20,212 — 20,077 40,289 316,770 — 229,859 546,629 Commodity contracts 13,114 — 4,038 17,152 67,449 — 82,313 149,762 Other 219 — — 219 5,684 — — 5,684 Total derivatives not designated as accounting hedges 337,582 105,180 24,382 467,144 7,230,926 5,901,228 1,538,532 14,670,686 Total derivatives $ 340,573 $ 106,623 $ 24,382 $ 471,578 $ 7,273,921 $ 5,936,757 $ 1,538,532 $ 14,749,210 Cash collateral netting (50,335) (1,037) — (51,372) — — — — Counterparty netting (265,707) (104,294) (21,592) (391,593) — — — — Total derivative assets $ 24,531 $ 1,292 $ 2,790 $ 28,613 $ 7,273,921 $ 5,936,757 $ 1,538,532 $ 14,749,210 Derivative Liabilities at December 31, 2015 Fair Value Notional Bilateral OTC Cleared OTC Exchange Traded Total Bilateral OTC Cleared OTC Exchange Traded Total (dollars in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 20 $ 250 $ — $ 270 $ 3,560 $ 9,869 $ — $ 13,429 Foreign exchange contracts 56 6 — 62 4,604 455 — 5,059 Total derivatives designated as . accounting hedges 76 256 — 332 8,164 10,324 — 18,488 Derivatives not designated as accounting hedges(1): Interest rate contracts 203,004 103,852 283 307,139 4,030,039 5,682,322 1,077,710 10,790,071 Credit contracts 19,942 3,723 — 23,665 562,027 131,388 — 693,415 Foreign exchange contracts 65,034 232 22 65,288 1,868,015 13,322 2,655 1,883,992 Equity contracts 25,708 — 20,424 46,132 332,734 — 229,266 562,000 Commodity contracts 10,864 — 3,887 14,751 59,169 — 62,974 122,143 Other 43 — — 43 4,114 — — 4,114 Total derivatives not designated as accounting hedges 324,595 107,807 24,616 457,018 6,856,098 5,827,032 1,372,605 14,055,735 Total derivatives $ 324,671 $ 108,063 $ 24,616 $ 457,350 $ 6,864,262 $ 5,837,356 $ 1,372,605 $ 14,074,223 Cash collateral netting (33,332) (2,951) — (36,283) — — — — Counterparty netting (265,707) (104,294) (21,592) (391,593) — — — — Total derivative liabilities $ 25,632 $ 818 $ 3,024 $ 29,474 $ 6,864,262 $ 5,837,356 $ 1,372,605 $ 14,074,223 Derivative Assets at December 31, 2014 Fair Value Notional Bilateral OTC Cleared OTC Exchange Traded Total Bilateral OTC Cleared OTC Exchange Traded Total (dollars in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 3,947 $ 1,053 $ — $ 5,000 $ 44,324 $ 27,692 $ — $ 72,016 Foreign exchange contracts 498 6 — 504 9,362 261 — 9,623 Total derivatives designated as accounting hedges 4,445 1,059 — 5,504 53,686 27,953 — 81,639 Derivatives not designated as accounting hedges(2): Interest rate contracts 281,214 211,552 407 493,173 4,854,953 9,187,454 1,467,056 15,509,463 Credit contracts 27,776 4,406 — 32,182 806,441 167,390 — 973,831 Foreign exchange contracts 72,362 152 83 72,597 1,955,343 11,538 9,663 1,976,544 Equity contracts 23,208 — 24,916 48,124 299,363 — 271,164 570,527 Commodity contracts 17,698 — 6,717 24,415 115,792 — 156,440 272,232 Other 376 — — 376 5,179 — — 5,179 Total derivatives not designated as accounting hedges 422,634 216,110 32,123 670,867 8,037,071 9,366,382 1,904,323 19,307,776 Total derivatives $ 427,079 $ 217,169 $ 32,123 $ 676,371 $ 8,090,757 $ 9,394,335 $ 1,904,323 $ 19,389,415 Cash collateral netting (58,541) (4,654) — (63,195) — — — — Counterparty netting (338,041) (210,922) (27,819) (576,782) — — — — Total derivative assets $ 30,497 $ 1,593 $ 4,304 $ 36,394 $ 8,090,757 $ 9,394,335 $ 1,904,323 $ 19,389,415 Derivative Liabilities at December 31, 2014 Fair Value Notional Bilateral OTC Cleared OTC Exchange Traded Total Bilateral OTC Cleared OTC Exchange Traded Total (dollars in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 125 $ 99 $ — $ 224 $ 2,024 $ 7,588 $ — $ 9,612 Foreign exchange contracts 5 1 — 6 1,491 121 — 1,612 Total derivatives designated as accounting hedges 130 100 — 230 3,515 7,709 — 11,224 Derivatives not designated as accounting hedges(2): Interest rate contracts 264,579 207,482 293 472,354 4,615,886 9,138,417 1,714,021 15,468,324 Credit contracts 28,165 3,944 — 32,109 714,181 154,054 — 868,235 Foreign exchange contracts 72,156 169 21 72,346 1,947,178 11,477 1,761 1,960,416 Equity contracts 30,061 — 25,511 55,572 339,884 — 302,205 642,089 Commodity contracts 14,740 — 6,783 21,523 93,019 — 132,136 225,155 Other 172 — — 172 5,478 — — 5,478 Total derivatives not designated as accounting hedges 409,873 211,595 32,608 654,076 7,715,626 9,303,948 2,150,123 19,169,697 Total derivatives $ 410,003 $ 211,695 $ 32,608 $ 654,306 $ 7,719,141 $ 9,311,657 $ 2,150,123 $ 19,180,921 Cash collateral netting (37,054) (258) — (37,312) — — — — Counterparty netting (338,041) (210,922) (27,819) (576,782) — — — — Total derivative liabilities $ 34,908 $ 515 $ 4,789 $ 40,212 $ 7,719,141 $ 9,311,657 $ 2,150,123 $ 19,180,921 _____________ (1) Notional amounts include gross notionals related to open long and short futures contracts of $ 1,009.5 billion and $ 653.0 billion, respectively. The unsettled fair value on these futures contracts (excluded from the table above) of $ 1,145 million and $ 437 million is included in Customer and other receivables and Customer and other payables, res pectively, in the consolidated statements of financial condition. (2) Notional amounts include gross notionals related to open long and short futures contracts of $ 685.3 billion and $ 1,122.3 billion, respectively. The unsettled fair value on these futures contracts (excluded from the table above) of $ 472 million and $ 21 million is included in Customer and other receivables and Customer and other payables, respectively, in the consolidated statements of financial condition. |
Offsetting of Derivative Instruments and Related Collateral Amounts | At December 31, 2015 Gross Amounts(1) Amounts Offset in the Consolidated Statements of Financial Condition Net Amounts Presented in the Consolidated Statements of Financial Condition Amounts Not Offset in the Consolidated Statements of Financial Condition(2) Net Exposure Financial Instruments Collateral Other Cash Collateral (dollars in millions) Derivative assets Bilateral OTC $ 340,573 $ (316,042) $ 24,531 $ (9,190) $ (9) $ 15,332 Cleared OTC 106,623 (105,331) 1,292 — — 1,292 Exchange traded 24,382 (21,592) 2,790 — — 2,790 Total derivative assets $ 471,578 $ (442,965) $ 28,613 $ (9,190) $ (9) $ 19,414 Derivative liabilities Bilateral OTC $ 324,671 $ (299,039) $ 25,632 $ (5,384) $ (5) $ 20,243 Cleared OTC 108,063 (107,245) 818 — — 818 Exchange traded 24,616 (21,592) 3,024 (405) — 2,619 Total derivative liabilities $ 457,350 $ (427,876) $ 29,474 $ (5,789) $ (5) $ 23,680 At December 31, 2014 Gross Amounts(1) Amounts Offset in the Consolidated Statements of Financial Condition Net Amounts Presented in the Consolidated Statements of Financial Condition Amounts Not Offset in the Consolidated Statements of Financial Condition(2) Net Exposure Financial Instruments Collateral Other Cash Collateral (dollars in millions) Derivative assets Bilateral OTC $ 427,079 $ (396,582) $ 30,497 $ (9,844) $ (19) $ 20,634 Cleared OTC 217,169 (215,576) 1,593 — — 1,593 Exchange traded 32,123 (27,819) 4,304 — — 4,304 Total derivative assets $ 676,371 $ (639,977) $ 36,394 $ (9,844) $ (19) $ 26,531 Derivative liabilities Bilateral OTC $ 410,003 $ (375,095) $ 34,908 $ (11,192) $ (179) $ 23,537 Cleared OTC 211,695 (211,180) 515 — (6) 509 Exchange traded 32,608 (27,819) 4,789 (726) — 4,063 Total derivative liabilities $ 654,306 $ (614,094) $ 40,212 $ (11,918) $ (185) $ 28,109 (1) Amounts include $ 4.2 billion of derivative assets and $ 5.2 billion of derivative liabilities at December 31, 2015 and $ 6.5 billion of derivative assets and $ 6.9 billion of derivative liabilities at December 31, 2014 , 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” herein, for additional disclosure about gross fair values and notionals for derivative instruments by risk type. (2) Amounts relate to master netting a greements and collateral a greements that 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. |
Summary of Gains or Losses Reported on Derivative Instruments Designated and Not Designated as Accounting Hedges | Gains (Losses) on Fair Value Hedges. Gains (Losses) Recognized in Interest Expense Product Type 2015 2014 2013 (dollars in millions) Derivatives $ (700) $ 1,462 $ (4,332) Borrowings 461 (1,616) 4,335 Total $ (239) $ (154) $ 3 Gains (Losses) on Derivatives Designated as Net Investment Hedges. Gains (Losses) Recognized in Other Comprehensive Income (effective portion) Product Type 2015 2014 2013 (dollars in millions) Foreign exchange contracts(1) $ 434 $ 606 $ 448 ____________ (1) Losses of $ 149 million, $ 186 million and $ 154 million related to the forward points on the hedging instruments were excluded from hedge effectiveness testing and recognized in Interest income during 2015 , 2014 and 2013, respectively. Gains (Losses) on Trading Instruments. The table below summarizes gains and losses included in Trading revenues in the consolidated statement s of income from trading activities. These activities include revenues related to derivative and non-derivative financial instruments. The Company generally utilizes financial instruments across a variety of product types in connection with their market-making and related risk management strategies. Accordingly, the trading revenues presented belo w are not representative of the manner in which the Company manages its business activities and are prepared in a manner similar to the presentation of trading revenues for regulatory reporting purposes. Gains (Losses) Recognized in Trading Revenues Product Type 2015 2014 2013 (dollars in millions) Interest rate contracts $ 1,249 $ 1,065 $ 820 Foreign exchange contracts 984 729 963 Equity security and index contracts(1) 5,695 4,603 5,044 Commodity and other contracts(2) 793 1,055 688 Credit contracts 775 1,274 2,525 Subtotal $ 9,496 $ 8,726 $ 10,040 Debt valuation adjustment 618 651 (681) Total $ 10,114 $ 9,377 $ 9,359 ____________ (1) Dividend income is included within equity security and index contracts. (2) Other contracts represent contracts not reported as interest rate, foreign exchange, equity security and index or credit contracts . |
Summary by Counterparty Credit Rating and Remaining Contract Maturity of the Fair Value of OTC Derivatives in a Gain Position | At December 31, 2015(1) Years to Maturity Cross-Maturity and Cash Collateral Netting(3) Net Exposure Post-cash Collateral Net Exposure Post-collateral(4) Credit Rating(2) Less than 1 1 - 3 3 - 5 Over 5 (dollars in millions) AAA $ 203 $ 453 $ 827 $ 3,665 $ (4,319) $ 829 $ 715 AA 2,689 2,000 1,876 9,223 (10,981) 4,807 2,361 A 9,748 8,191 4,774 20,918 (34,916) 8,715 5,448 BBB 3,614 4,863 1,948 11,801 (15,086) 7,140 4,934 Non-investment grade 3,982 2,333 1,157 3,567 (6,716) 4,323 3,166 Total $ 20,236 $ 17,840 $ 10,582 $ 49,174 $ (72,018) $ 25,814 $ 16,624 At December 31, 2014(1) Years to Maturity Cross-Maturity and Cash Collateral Netting(3) Net Exposure Post-cash Collateral Net Exposure Post-collateral(4) Credit Rating(2) Less than 1 1-3 3-5 Over 5 (dollars in millions) AAA $ 499 $ 246 $ 1,313 $ 4,281 $ (5,009) $ 1,330 $ 1,035 AA 2,679 2,811 2,704 14,137 (15,415) 6,916 4,719 A 11,733 10,833 7,585 23,968 (43,644) 10,475 6,520 BBB 5,119 3,753 2,592 13,132 (15,844) 8,752 6,035 Non-investment grade 3,196 3,089 1,541 2,499 (5,727) 4,598 3,918 Total $ 23,226 $ 20,732 $ 15,735 $ 58,017 $ (85,639) $ 32,071 $ 22,227 _____________ (1) Fair values shown represent the Company’s net exposure to counterparties related to its OTC derivative products. (2) Obligor credit ratings are determined by the 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 colla teral received is netted on a counterparty basis, provided legal right of offset exists. (4) Fair value is shown, net of collateral received ( primarily cash and U.S. government and agency securities). |
Credit Risk-Related Contingencies | Net Derivative Liabilities and Collateral Posted. The following table presents the aggregate fair value of certain derivative contracts that contain credit risk-related contingent features that are in a net liability position for which the Company has posted collateral in the normal course of business. At December 31, 2015 (dollars in millions) Net derivative liabilities $ 23,526 Collateral posted 19,070 Incremental Collateral or Termination Payments upon Potential Future Ratings Downgrade. At December 31, 2015(1) (dollars in millions) One-notch downgrade $ 1,224 Two-notch downgrade 1,146 ________ (1) Amounts include $ 1,573 million 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. |
Disclosure of Credit Derivatives | At December 31, 2015 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 $ 420,806 $ 1,980 $ 405,361 $ (2,079) Index and basket credit default swaps 199,688 (102) 173,936 (82) Tranched index and basket credit default swaps 69,025 (1,093) 149,631 2,122 Total $ 689,519 $ 785 $ 728,928 $ (39) At December 31, 2014 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 $ 535,415 $ (2,479) $ 509,872 $ 1,641 Index and basket credit default swaps 276,465 (1,777) 229,789 1,563 Tranched index and basket credit default swaps 96,182 (2,355) 194,343 3,334 Total $ 908,062 $ (6,611) $ 934,004 $ 6,538 Credit Ratings of Reference Obligation and Maturities of Credit Protection Sold . At December 31, 2015 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability(1) Years to Maturity Less than 1 1-3 3-5 Over 5 Total (dollars in millions) Single name credit default swaps(2): Investment grade $ 84,543 $ 138,467 $ 63,754 $ 12,906 $ 299,670 $ (1,831) Non-investment grade 38,054 56,261 24,432 2,389 121,136 3,811 Total $ 122,597 $ 194,728 $ 88,186 $ 15,295 $ 420,806 $ 1,980 Index and basket credit default swaps(2): Investment grade $ 33,507 $ 59,403 $ 45,505 $ 5,327 $ 143,742 $ (1,977) Non-investment grade 52,590 43,899 15,480 13,002 124,971 782 Total $ 86,097 $ 103,302 $ 60,985 $ 18,329 $ 268,713 $ (1,195) Total credit default swaps sold $ 208,694 $ 298,030 $ 149,171 $ 33,624 $ 689,519 $ 785 Other credit contracts 19 107 2 332 460 (24) Total credit derivatives and other credit contracts $ 208,713 $ 298,137 $ 149,173 $ 33,956 $ 689,979 $ 761 At December 31, 2014 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability(1) Years to Maturity Less than 1 1-3 3-5 Over 5 Total (dollars in millions) Single name credit default swaps(2): Investment grade $ 82,873 $ 199,776 $ 103,628 $ 20,490 $ 406,767 $ (4,252) Non-investment grade 29,857 66,066 29,011 3,714 128,648 1,773 Total $ 112,730 $ 265,842 $ 132,639 $ 24,204 $ 535,415 $ (2,479) Index and basket credit default swaps(2): Investment grade $ 49,877 $ 85,052 $ 78,276 $ 12,507 $ 225,712 $ (4,624) Non-investment grade 25,750 88,105 22,971 10,109 146,935 492 Total $ 75,627 $ 173,157 $ 101,247 $ 22,616 $ 372,647 $ (4,132) Total credit default swaps sold $ 188,357 $ 438,999 $ 233,886 $ 46,820 $ 908,062 $ (6,611) Other credit contracts 51 539 1 620 1,211 (500) Total credit derivatives and other credit contracts $ 188,408 $ 439,538 $ 233,887 $ 47,440 $ 909,273 $ (7,111) _____________ (1) Fair value amounts are shown on a gross basis prior to cash collateral or counterparty netting. (2) In order to provide an indication of the current payment status or performance risk of the credit default swaps, a breakdown of credit default swaps based on the Company’s internal credit ratings by investment grade and non-investment grade is provided. Du ring 2015, the Company began utilizing its internal credit ratings as compared with 2014 where external agency ratings, if available, were utilized. The change in the rating methodology did not have a significant impact on investment grade versus non-inves tment grade classifications or the fair values. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investment securities | |
Schedule of Investment Securities | At December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in millions) AFS debt securities: U.S. government and agency securities: U.S. Treasury securities $ 31,555 $ 5 $ 143 $ 31,417 U.S. agency securities(1) 21,103 29 156 20,976 Total U.S. government and agency securities 52,658 34 299 52,393 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,906 1 60 1,847 Non-agency 2,220 3 25 2,198 Auto loan asset-backed securities 2,556 — 9 2,547 Corporate bonds 3,780 5 30 3,755 Collateralized loan obligations 502 — 7 495 FFELP student loan asset-backed securities(2) 3,632 — 115 3,517 Total corporate and other debt 14,596 9 246 14,359 Total AFS debt securities 67,254 43 545 66,752 AFS equity securities 15 — 8 7 Total AFS securities 67,269 43 553 66,759 HTM securities: U.S. government securities: U.S. Treasury securities 1,001 — 3 998 U.S. agency securities(1) 4,223 1 34 4,190 Total HTM securities 5,224 1 37 5,188 Total Investment securities $ 72,493 $ 44 $ 590 $ 71,947 At December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in millions) AFS debt securities: U.S. government and agency securities: U.S. Treasury securities $ 35,855 $ 42 $ 67 $ 35,830 U.S. agency securities(1) 18,030 77 72 18,035 Total U.S. government and agency securities 53,885 119 139 53,865 Corporate and other debt: Commercial mortgage-backed securities: Agency 2,288 1 76 2,213 Non-agency 1,820 11 6 1,825 Auto loan asset-backed securities 2,433 — 5 2,428 Corporate bonds 3,640 10 22 3,628 Collateralized loan obligations 1,087 — 20 1,067 FFELP student loan asset-backed securities(2) 4,169 18 8 4,179 Total corporate and other debt 15,437 40 137 15,340 Total AFS debt securities 69,322 159 276 69,205 AFS equity securities 15 — 4 11 Total AFS securities 69,337 159 280 69,216 HTM securities: U.S. government securities: U.S. Treasury securities 100 — — 100 Total HTM securities 100 — — 100 Total Investment securities $ 69,437 $ 159 $ 280 $ 69,316 ______________ U.S. agency securities are compo sed of three main categories consisting of agency-issued debt, agency mortgage pass-through pool securities and collateralized mortgage obligations . 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 Investment Securities in an Unrealized Loss Position | At December 31, 2015 Less than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (dollars in millions) AFS debt securities: U.S. government and agency securities: U.S. Treasury securities $ 25,994 $ 126 $ 2,177 $ 17 $ 28,171 $ 143 U.S. agency securities 14,242 135 639 21 14,881 156 Total U.S. government and agency securities 40,236 261 2,816 38 43,052 299 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,185 44 422 16 1,607 60 Non-agency 1,479 21 305 4 1,784 25 Auto loan asset-backed securities 1,644 7 881 2 2,525 9 Corporate bonds 2,149 19 525 11 2,674 30 Collateralized loan obligations 352 5 143 2 495 7 FFELP student loan asset-backed securities 2,558 79 929 36 3,487 115 Total corporate and other debt 9,367 175 3,205 71 12,572 246 Total AFS debt securities 49,603 436 6,021 109 55,624 545 AFS equity securities 7 8 — — 7 8 Total AFS securities 49,610 444 6,021 109 55,631 553 HTM securities: U.S. government and agency securities: U.S. Treasury securities 898 3 — — 898 3 U.S. agency securities 3,677 34 — — 3,677 34 Total HTM securities 4,575 37 — — 4,575 37 Total Investment securities $ 54,185 $ 481 $ 6,021 $ 109 $ 60,206 $ 590 At December 31, 2014 Less than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (dollars in millions) AFS debt securities: U.S. government and agency securities: U.S. Treasury securities $ 11,410 $ 14 $ 5,924 $ 53 $ 17,334 $ 67 U.S. agency securities 2,739 6 4,133 66 6,872 72 Total U.S. government and agency securities 14,149 20 10,057 119 24,206 139 Corporate and other debt: Commercial mortgage-backed securities: Agency 42 — 1,822 76 1,864 76 Non-agency 706 3 346 3 1,052 6 Auto loan asset-backed securities 2,034 5 — — 2,034 5 Corporate bonds 905 6 1,299 16 2,204 22 Collateralized loan obligations — — 1,067 20 1,067 20 FFELP student loan asset-backed securities 1,523 6 393 2 1,916 8 Total corporate and other debt 5,210 20 4,927 117 10,137 137 Total AFS debt securities 19,359 40 14,984 236 34,343 276 AFS equity securities 11 4 — — 11 4 Total Investment securities $ 19,370 $ 44 $ 14,984 $ 236 $ 34,354 $ 280 |
Schedule of Amortized Cost and Fair Valueof Investment Securities by Contractual Date | At December 31, 2015 Amortized Cost Fair Value Annualized Average Yield (dollars in millions) AFS debt securities: U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 6,209 $ 6,205 0.7% After 1 year through 5 years 24,900 24,765 1.0% After 5 years through 10 years 446 447 2.1% Total 31,555 31,417 U.S. agency securities: After 1 year through 5 years 2,986 2,984 0.6% After 5 years through 10 years 1,652 1,650 1.9% After 10 years 16,465 16,342 1.8% Total 21,103 20,976 Total U.S. government and agency securities 52,658 52,393 1.2% Corporate and other debt: Commercial mortgage-backed securities: Agency: Due within 1 year 49 50 0.7% After 1 year through 5 years 570 567 0.9% After 5 years through 10 years 213 209 1.5% After 10 years 1,074 1,021 1.5% Total 1,906 1,847 Non-agency: After 10 years 2,220 2,198 1.9% Total 2,220 2,198 Auto loan asset-backed securities: Due within 1 year 64 64 0.9% After 1 year through 5 years 2,302 2,294 1.2% After 5 years through 10 years 190 189 1.7% Total 2,556 2,547 Corporate bonds: Due within 1 year 412 412 1.1% After 1 year through 5 years 2,615 2,595 1.6% After 5 years through 10 years 753 748 2.7% Total 3,780 3,755 Collateralized loan obligations: After 5 years through 10 years 502 495 1.5% Total 502 495 FFELP student loan asset-backed securities: After 1 year through 5 years 88 88 0.6% After 5 years through 10 years 776 759 0.9% After 10 years 2,768 2,670 0.9% Total 3,632 3,517 Total corporate and other debt 14,596 14,359 1.4% Total AFS debt securities 67,254 66,752 1.3% AFS equity securities 15 7 ― % Total AFS securities 67,269 66,759 1.3% HTM securities: U.S. government securities: U.S. Treasury securities: After 1 year through 5 years 1,001 998 1.0% Total 1,001 998 U.S. agency securities: After 10 years 4,223 4,190 2.3% Total 4,223 4,190 Total HTM securities 5,224 5,188 2.1% Total Investment securities $ 72,493 $ 71,947 1.3% |
Schedule of Proceeds on Sales of AFS Securities | 2015 2014 2013 (dollars in millions) Gross realized gains $ 116 $ 41 $ 49 Gross realized (losses) (32) (1) (4) Total $ 84 $ 40 $ 45 |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Collateralized Transactions | |
Information of Offsetting of Assets and Liabilities | At December 31, 2015 Gross Amounts(1) Amounts Offset in the Consolidated Statements of Financial Condition Net Amounts Presented in the Consolidated Statements of Financial Condition Financial Instruments Not Offset in the Consolidated Statements of Financial Condition(2) Net Exposure (dollars in millions) Assets Securities purchased under agreements to resell $ 135,714 $ (48,057) $ 87,657 $ (84,752) $ 2,905 Securities borrowed 147,445 (5,029) 142,416 (134,250) 8,166 Liabilities Securities sold under agreements to repurchase $ 84,749 $ (48,057) $ 36,692 $ (31,604) $ 5,088 Securities loaned 24,387 (5,029) 19,358 (18,881) 477 At December 31, 2014 Gross Amounts(1) Amounts Offset in the Consolidated Statements of Financial Condition Net Amounts Presented in the Consolidated Statements of Financial Condition Financial Instruments Not Offset in the Consolidated Statements of Financial Condition(2) Net Exposure (dollars in millions) Assets Securities purchased under agreements to resell $ 148,234 $ (64,946) $ 83,288 $ (79,343) $ 3,945 Securities borrowed 145,556 (8,848) 136,708 (128,282) 8,426 Liabilities Securities sold under agreements to repurchase $ 134,895 $ (64,946) $ 69,949 $ (56,454) $ 13,495 Securities loaned 34,067 (8,848) 25,219 (24,252) 967 _____________ (1) Amounts include $ 2.6 billion of Securities purchased under agreements to resell, $ 3.0 billion of Securities borrowed and $ 4.9 billion of Securities sold under agreements to repurchase at December 31, 2015 and $3.9 billion of Securities purchased under agreements to resell, $4.2 billion of Securities borrowed, $15.6 billion of Securities sold under agreements to repurchase and $0.7 billion of Securities loaned at December 31, 2014 , which are either not subject to master netting 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 that 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 SecuritiesF inancing Transactions | At December 31, 2015 Remaining Contractual Maturity Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total (dollars in millions) Securities sold under agreements to repurchase(1) $ 20,410 $ 25,245 $ 13,221 $ 25,873 $ 84,749 Securities loaned(1) 12,247 478 2,156 9,506 24,387 Gross amount of secured financing included in the above offsetting disclosure $ 32,657 $ 25,723 $ 15,377 $ 35,379 $ 109,136 Obligation to return securities received as collateral 19,316 — — — 19,316 Total $ 51,973 $ 25,723 $ 15,377 $ 35,379 $ 128,452 At December 31, 2015 (dollars in millions) Securities sold under agreements to repurchase(1) U.S. government and agency securities $ 36,609 State and municipal securities 173 Other sovereign government obligations 24,820 Asset-backed securities 441 Corporate and other debt 4,020 Corporate equities 18,473 Other 213 Total securities sold under agreements to repurchase $ 84,749 Securities loaned(1) Other sovereign government obligations $ 7,336 Corporate and other debt 71 Corporate equities 16,972 Other 8 Total securities loaned $ 24,387 Gross amount of secured financing included in the above offsetting disclosure $ 109,136 Obligation to return securities received as collateral Corporate equities $ 19,313 Corporate and other debt 3 Total obligation to return securities received as collateral $ 19,316 Total $ 128,452 _____________ (1) Amo unts are presented on a gross basis, prior to netting in the consolidated statements of financial condition . |
Schedule of Cash and Securities Segregated under Federal and Other Regulations | At December 31, 2015 At December 31, 2014 (dollars in millions) Cash deposited with clearing organizations or segregated under federal and other regulations or requirements(1) $ 31,469 $ 40,607 Securities(2) 14,390 14,630 Total $ 45,859 $ 55,237 _____________ In 2015, the Company made amendments to certain arrangements by which it acts in the capacity of a clearing member to clear derivatives on behalf of customers. These amendments resulted in approximately $ 3 . 8 billion related to cash initial margin received from customers and remitted to clearing organizations or third- party custodian banks no longer qualifying for recognition in the consolidated statements of financial condition. Securities deposited with clearing organizations or segregated under federal and other regulations or requirements are sourced from Securities purchased under agreements to resell and Trading assets in the consolidated statements of financial condition. |
Loans and Allowance for Credi37
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Table of Loans Outstanding | Loans Held for Investment and Held for Sale. At December 31, 2015 At December 31, 2014 Loans by Product Type Loans Held for Investment Loans Held for Sale Total Loans(1)(2) Loans Held for Investment Loans Held for Sale Total Loans(1)(2) (dollars in millions) Corporate loans $ 23,554 $ 11,924 $ 35,478 $ 19,659 $ 8,200 $ 27,859 Consumer loans 21,528 — 21,528 16,576 — 16,576 Residential real estate loans 20,863 104 20,967 15,735 114 15,849 Wholesale real estate loans 6,839 1,172 8,011 5,298 1,144 6,442 Total loans, gross of allowance for loan losses 72,784 13,200 85,984 57,268 9,458 66,726 Allowance for loan losses (225) — (225) (149) — (149) Total loans, net of allowance for loan losses $ 72,559 $ 13,200 $ 85,759 $ 57,119 $ 9,458 $ 66,577 ______________ Amounts include loans that are made to non-U.S. borrowers of $ 9,789 million and $ 7 , 017 million at December 31, 2015 and December 31, 2014 , respectively. Loans at fixed interest rates and floating or adjustable interest rates were $ 8,471 million and $ 77,288 million, respectively, at December 31, 2015 and $ 6,663 million and $ 59,914 million, respectively, at December 31, 2014 . |
Table of Credit Quality Indicators for Gross Loans Held-for-investment by Product Type | Credit Quality Indicators for Loans Held for Investment, Gross of Allowance for Loan Losses, by Product Type. At December 31, 2015 Corporate Consumer Residential Real Estate Wholesale Real Estate Total (dollars in millions) Pass $ 22,040 $ 21,528 $ 20,828 $ 6,839 $ 71,235 Special mention 300 — — — 300 Substandard 1,202 — 35 — 1,237 Doubtful 12 — — — 12 Loss — — — — — Total loans $ 23,554 $ 21,528 $ 20,863 $ 6,839 $ 72,784 At December 31, 2014 Corporate Consumer Residential Real Estate Wholesale Real Estate Total (dollars in millions) Pass $ 17,847 $ 16,576 $ 15,688 $ 5,298 $ 55,409 Special mention 1,683 — — — 1,683 Substandard 127 — 47 — 174 Doubtful 2 — — — 2 Loss — — — — — Total loans $ 19,659 $ 16,576 $ 15,735 $ 5,298 $ 57,268 |
Table of Impaired Loans, Past Due Loans and Allowance for Held-for-investment Loans | Impaired and Past Due Loans Held for Investment. At December 31, 2015 At December 31, 2014 Loans by Product Type Corporate Residential Real Estate Total Corporate Residential Real Estate Total (dollars in millions) Impaired loans with allowance $ 39 $ — $ 39 $ — $ — $ — Impaired loans without allowance(1) 89 17 106 2 17 19 Impaired loans unpaid principal balance 130 19 149 2 17 19 Past due 90 days loans and on nonaccrual 1 21 22 2 25 27 (1) At December 31, 2015 and December 31, 2014 , no allowance was outstanding for these loans as the present value of the expected future cash flows (or, alternatively, the observable market price of the loan or the fair value of the collateral held) equaled or exceeded the carrying value. At December 31, 2015 At December 31, 2014 Loans by Region Americas EMEA Asia-Pacific Total Americas EMEA Asia-Pacific Total (dollars in millions) Impaired loans $ 108 $ 12 $ 25 $ 145 $ 19 $ — $ — $ 19 Past due 90 days loans and on nonaccrual 22 — — 22 27 — — 27 Allowance for loan losses 183 34 8 225 121 20 8 149 EMEA—Europe, Middle East and Africa. |
Loan and Lending-related Commitments by Impairment Methodology, and Their Respective Allowances | Allowance for Credit Losses on Lending Activities. Corporate Consumer Residential Real Estate Wholesale Real Estate Total (dollars in millions) Allowance for Loan Losses. Balance at December 31, 2014 $ 118 $ 2 $ 8 $ 21 $ 149 Gross charge-offs — — (1) — (1) Gross recoveries 1 — — — 1 Net recoveries/(charge-offs) 1 — (1) — — Provision for loan losses 58 3 10 16 87 Other(1) (11) — — — (11) Balance at December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Allowance for Loan Losses by Impairment Methodology. Inherent $ 156 $ 5 $ 17 $ 37 $ 215 Specific 10 — — — 10 Total allowance for loan losses at December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Loans Evaluated by Impairment Methodology(2). Inherent $ 23,426 $ 21,528 $ 20,846 $ 6,839 $ 72,639 Specific 128 — 17 — 145 Total loans evaluated at December 31, 2015 $ 23,554 $ 21,528 $ 20,863 $ 6,839 $ 72,784 Allowance for Lending Commitments. Balance at December 31, 2014 $ 147 $ — $ — $ 2 $ 149 Provision for lending commitments 33 1 — 2 36 Balance at December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Allowance for Lending Commitments by Impairment Methodology. Inherent $ 173 $ 1 $ — $ 4 $ 178 Specific 7 — — — 7 Total allowance for lending commitments at December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Lending Commitments Evaluated by Impairment Methodology(2). Inherent $ 63,873 $ 4,856 $ 312 $ 381 $ 69,422 Specific 126 — — — 126 Total lending commitments evaluated at December 31, 2015 $ 63,999 $ 4,856 $ 312 $ 381 $ 69,548 Corporate Consumer Residential Real Estate Wholesale Real Estate Total (dollars in millions) Allowance for Loan Losses. Balance at December 31, 2013 $ 137 $ 1 $ 4 $ 14 $ 156 Gross charge-offs (3) — — (3) (6) Gross recoveries — — — 1 1 Net recoveries/(charge-offs) (3) — — (2) (5) Provision (release) for loan losses (13) 1 4 9 1 Other(1) (3) — — — (3) Balance at December 31, 2014 $ 118 $ 2 $ 8 $ 21 $ 149 Allowance for Loan Losses by Impairment Methodology. Inherent $ 118 $ 2 $ 8 $ 21 $ 149 Specific — — — — — Total allowance for loan losses at December 31, 2014 $ 118 $ 2 $ 8 $ 21 $ 149 Loans Evaluated by Impairment Methodology(2). Inherent $ 19,657 $ 16,576 $ 15,718 $ 5,298 $ 57,249 Specific 2 — 17 — 19 Total loan evaluated at December 31, 2014 $ 19,659 $ 16,576 $ 15,735 $ 5,298 $ 57,268 Allowance for Lending Commitments. Balance at December 31, 2013 $ 125 $ — $ — $ 2 $ 127 Provision for lending commitments 22 — — — 22 Balance at December 31, 2014 $ 147 $ — $ — $ 2 $ 149 Allowance for Lending Commitments by Impairment Methodology. Inherent $ 147 $ — $ — $ 2 $ 149 Specific — — — — — Total allowance for lending commitments at December 31, 2014 $ 147 $ — $ — $ 2 $ 149 Lending Commitments Evaluated by Impairment Methodology(2). Inherent $ 65,987 $ 3,484 $ 283 $ 367 $ 70,121 Specific 26 — — — 26 Total lending commitments evaluated at December 31, 2014 $ 66,013 $ 3,484 $ 283 $ 367 $ 70,147 _______________ (1) Amount includes the impact related to the transfer to loans held for sale and foreign currency translation adjustments. (2) Loan balances are gross of the allowance for loan losses, and lending commitments are gross of the allowance for lending commitments. |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures | |
Summarized Financial Data for MUMSS | At December 31, 2015 2014 (dollars in millions) Total assets $ 135,398 $ 111,053 Total liabilities 132,492 108,263 Noncontrolling interests 29 37 2015 2014 2013 (dollars in millions) Net revenues $ 2,961 $ 2,961 $ 3,305 Income from continuing operations before income taxes 845 908 1,325 Net income 589 595 1,459 Net income applicable to MUMSS 565 582 1,441 |
Goodwill and Net Intangible A39
Goodwill and Net Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Net Intangible Assets | |
Changes in Carrying Amount of Goodwill | Changes in Carrying Amount of Goodwill, Net of Accumulated Impairment Losses. Institutional Securities Wealth Management Investment Management Total (dollars in millions) Goodwill at December 31, 2013(1) $ 293 $ 5,533 $ 769 $ 6,595 Foreign currency translation adjustments and other (14) ─ ─ (14) Goodwill acquired during the period 7 ─ ─ 7 Goodwill at December 31, 2014(1) $ 286 $ 5,533 $ 769 $ 6,588 Foreign currency translation adjustments and other (15) ─ ─ (15) Goodwill acquired during the period 11 ─ ─ 11 Goodwill at December 31, 2015(1) $ 282 $ 5,533 $ 769 $ 6,584 _____________ (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 $ 7,284 million and $ 7,288 million at December 31, 2015 and December 31, 2014 , respectively. |
Changes in Carrying Amount of Intangible Assets | Changes in Carrying Amount of Net Intangible Assets. Institutional Securities Wealth Management Investment Management Total (dollars in millions) Amortizable net intangible assets at December 31, 2013 $ 56 $ 3,182 $ 40 $ 3,278 Mortgage servicing rights — 8 — 8 Net intangible assets at December 31, 2013 $ 56 $ 3,190 $ 40 $ 3,286 Amortizable net intangible assets at December 31, 2013 $ 56 $ 3,182 $ 40 $ 3,278 Disposal (4) — — (4) Intangible assets acquired during the period 182 — — 182 Amortization expense (13) (274) (10) (297) Impairment losses(1) — (3) (3) (6) Amortizable net intangible assets at December 31, 2014 221 2,905 27 3,153 Mortgage servicing rights — 6 — 6 Net intangible assets at December 31, 2014 $ 221 $ 2,911 $ 27 $ 3,159 Amortizable net intangible assets at December 31, 2014 $ 221 $ 2,905 $ 27 $ 3,153 Intangible assets acquired during the period(2) 160 — — 160 Amortization expense (26) (273) (7) (306) Other (28) — — (28) Amortizable net intangible assets at December 31, 2015 327 2,632 20 2,979 Mortgage servicing rights — 5 — 5 Net intangible assets at December 31, 2015 $ 327 $ 2,637 $ 20 $ 2,984 ____________ (1) Impairment losses are recorded within Other expenses in the consolidated statements of income. ( 2 ) I ncludes a $ 159 million net increase in Intangible assets related to a Commodities division transaction, which also resulted in a gain of $ 78 million recorded in Other revenues in the consolidated statements of income. |
Amortizable Intangible Assets | Amortizable Intangible Assets. At December 31, 2015 At December 31, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (dollars in millions) Trademarks $ 1 $ — $ 7 $ 6 Tradename 280 31 280 21 Customer relationships 4,059 1,686 4,048 1,430 Management contracts 478 250 268 170 Other 291 163 374 197 Total amortizable intangible assets $ 5,109 $ 2,130 $ 4,977 $ 1,824 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | At December 31, 2015(1) At December 31, 2014(1) (dollars in millions) Savings and demand deposits $ 153,346 $ 132,159 Time deposits(2) 2,688 1,385 Total(3) $ 156,034 $ 133,544 (1 ) Total deposits subject to the FDIC insurance at December 31, 2015 and December 31, 2014 were $ 113 billion and $ 99 billion, respectively. Of the total time deposits subject to the FDIC insurance at December 31, 2015 and December 31, 2014, $ 14 million and $ 2 million, respectively, met or exceeded the FDIC insurance limit. (2) Certain time deposit accounts are carried at fair value under the fair value option (see Note 3). (3) The Company’s deposits were primarily held in the U.S. |
Borrowings and Other Secured 41
Borrowings and Other Secured Financings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Borrowings and Other Secured Financings | |
Long-term Borrowings - Maturities and Terms | Parent Company Subsidiaries At At Fixed Variable Fixed Variable December 31, December 31, Rate Rate(1) Rate Rate(1) 2015(2)(3) 2014 (dollars in millions) Due in 2015 $ — $ — $ — $ — $ — $ 20,740 Due in 2016 9,883 8,227 24 4,262 22,396 20,643 Due in 2017 14,550 6,611 13 1,092 22,266 24,000 Due in 2018 13,118 3,981 15 823 17,937 17,679 Due in 2019 11,219 6,740 47 562 18,568 17,571 Due in 2020 11,289 4,713 14 989 17,005 8,190 Thereafter 45,173 8,586 308 1,529 55,596 43,949 Total $ 105,232 $ 38,858 $ 421 $ 9,257 $ 153,768 $ 152,772 Weighted average coupon at period-end(4) 4.5% 1.0% 6.1% N/M 4.0% 4.2% N/M—Not Meaningful. (1) Variable rate borrowings bear interest based on a variety of money market indices, including LIBOR and federal f unds rates. Amounts include borrowings that are equity-linked, credit-linked, co mmodity -linked or linked to some other index. ( 2 ) Amounts include an increase of approximately $ 2.7 billion at December 31, 2015 to the carrying amount of certain of the long-term borrowings associated with fair value hedges. The increase to the carrying value associated with fair value hedges by year due was approximately $ 0. 1 billion due in 201 6 , $ 0. 5 billion due in 201 7 , $ 0. 3 bil lion due in 201 8 , $ 0 . 5 billion due in 201 9 , $ 0.4 billion due in 2020 and $ 0.9 billion due thereafter. ( 3 ) Amounts include a de crease of approximately $ 0.5 billion at December 31, 2015 to the carrying amounts of certain of the long-term borrowings for which the fair value option was elected (see Note 3 ). ( 4 ) Weighted average coupon was calculated utilizing U.S. and non-U.S. dollar interest rates and excludes financial instruments for which the fair value option was e lected. Virtually all of the variable rate notes issued by subsidiaries are carried at fair value so a weighted average coupon is not meaningful. |
Components of Long-term Borrowings | At December 31, 2015 At December 31, 2014 (dollars in millions) Senior debt $ 140,494 $ 139,565 Subordinated debt 10,404 8,339 Junior subordinated debentures 2,870 4,868 Total $ 153,768 $ 152,772 |
Effective Average Borrowing Rate | 2015 2014 2013 Weighted average coupon of long-term borrowings at period-end(1) 4.0% 4.2% 4.4% Effective average borrowing rate for long-term borrowings after swaps at period-end(1) 2.1% 2.3% 2.2% (1) Included in the weighted average and effective average calculations are U.S. and non-U.S. dollar interest rates. |
Other Secured Financings | At December 31, 2015 At December 31, 2014 (dollars in millions) Secured financings with original maturities greater than one year $ 7,629 $ 10,346 Secured financings with original maturities one year or less(1) 1,435 1,395 Failed sales(2) 400 344 Total $ 9,464 $ 12,085 ___________ (1) Amounts include approximately $ 1,401 million of variable rate financings and approximately $ 34 million in fixed rate financings at December 31, 2015 and approximately $ 1,299 million of variable rate financings and approximately $ 96 million in fixed rate financings at December 31, 2014. (2) For more information on failed sales, see Note 13. Maturities and Terms of Secured Financings with Original Maturities Greater than One Year. |
Schedule of Maturities of Secured Financing | At December 31, 2015 At December 31, 2014 Fixed Rate Variable Rate(1) Total (dollars in millions) Due in 2015 $ — $ — $ — $ 3,341 Due in 2016 — 2,333 2,333 4,705 Due in 2017 — 2,122 2,122 881 Due in 2018 — 1,553 1,553 786 Due in 2019 1 1,147 1,148 194 Due in 2020 58 84 142 56 Thereafter 84 247 331 383 Total $ 143 $ 7,486 $ 7,629 $ 10,346 Weighted average coupon rate at period-end(2) 3.9% 1.2% 1.2% 0.8% ___________ (1 ) Variable rate borrowings bear interest based on a variety of indices, including LIBOR. Amounts include borrowings that are equity-linked, credit-linked, commodity -linked or linked to some other index. ( 2 ) Weighted average coupon was calcu lated utilizing U.S. and non-U.S. dollar interest rates and excludes secured financings that are linked to non-interest indices and for which fair value option was elected. |
Schedule of Failed Sales | At At December 31, December 31, 2015 2014 (dollars in millions) Due in 2015 $ — $ 32 Due in 2016 69 90 Due in 2017 168 148 Due in 2018 1 14 Due in 2019 54 10 Due in 2020 104 — Thereafter 4 50 Total $ 400 $ 344 |
Commitments, Guarantees and C42
Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments, Guarantees and Contingencies [Abstract] | |
Commitments by Period of Expiration | Commitments. Years to Maturity at December 31, 2015 Less than 1 1-3 3-5 Over 5 Total (dollars in millions) Letters of credit and other financial guarantees obtained to satisfy collateral requirements $ 172 $ 7 $ — $ 107 $ 286 Investment activities 544 78 36 398 1,056 Corporate lending commitments(1) 14,912 25,124 48,655 7,025 95,716 Consumer lending commitments 4,846 5 — 4 4,855 Residential real estate lending commitments 24 99 63 246 432 Wholesale real estate lending commitments 82 265 41 2 390 Forward-starting reverse repurchase agreements and securities borrowing agreements(2)(3) 33,485 — — — 33,485 Total $ 54,065 $ 25,578 $ 48,795 $ 7,782 $ 136,220 (1) Due to the nature of the Company’s obligations under the commitments, these amounts include certain commitments participated to third parties of $ 4.2 billion. ( 2 ) The Company enters into forward - starting reverse repurchase and securities borrowing agreements that primarily settle within three business days of the trade date, and of the total amount at December 31, 2015 , $ 25.6 billion settled within three business days. (3) 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 approxima tely $ 2.2 billion. |
Future Minimum Rental Commitments for Premises and Equipment | Operating Premises Leases. At December 31, 2015 (dollars in millions) 2016 $ 612 2017 642 2018 570 2019 485 2020 438 Thereafter 3,127 |
Obligations under Guarantee Arrangements | Maximum Potential Payout/Notional Years to Maturity Carrying Amount (Asset)/ Liability Collateral/ Recourse Less than 1 1-3 3-5 Over 5 Total (dollars in millions) Credit derivative contracts(1) $ 208,694 $ 298,030 $ 149,171 $ 33,624 $ 689,519 $ 785 $ — Other credit contracts 19 107 2 332 460 (24) — Non-credit derivative contracts(1) 1,103,014 760,769 321,557 567,755 2,753,095 61,401 — Standby letters of credit and other financial guarantees issued(2) 822 1,361 1,174 5,870 9,227 (175) 7,633 Market value guarantees 11 166 224 29 430 (3) 6 Liquidity facilities 3,079 — — — 3,079 (5) 4,875 Whole loan sales guarantees — — 1 23,451 23,452 9 — Securitization representations and warranties — — — 65,000 65,000 98 — General partner guarantees 25 41 87 467 620 29 — (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 4. (2) The se amounts include certain issued standby letters of credit participated to third parties totaling $ 0.7 billion due to the nature of the Company’s obligations under these arrangements. |
Variable Interest Entities an43
Variable Interest Entities and Securitization Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Securitization Activities and Variable Interest Entities [Abstract] | |
Consolidated VIEs | At December 31, 2015 At December 31, 2014 VIE Assets VIE Liabilities VIE Assets VIE Liabilities (dollars in millions) Mortgage- and asset-backed securitizations $ 375 $ 234 $ 563 $ 337 Managed real estate partnerships(1) 38 1 288 4 Other structured financings 787 13 928 80 Credit-linked notes and Other 1,400 189 1,199 — _________ During 2015 and 2014 , the Company deconsolidated approximately $ 191 million and $1.6 billion, respectively, in net assets previously attributable to nonredeemable noncontrolling interests that were primarily related to or associated with real estate fund s sponsored by the Company. |
Non-Consolidated VIEs | At December 31, 2015 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) $ 126,872 $ 8,805 $ 4,654 $ 2,201 $ 20,775 Maximum exposure to loss: Debt and equity interests(2) $ 13,361 $ 1,259 $ 1 $ 1,129 $ 3,854 Derivative and other contracts — — 2,834 — 67 Commitments, guarantees and other 494 231 — 361 222 Total maximum exposure to loss $ 13,855 $ 1,490 $ 2,835 $ 1,490 $ 4,143 Carrying value of exposure to loss—Assets: Debt and equity interests(2) $ 13,361 $ 1,259 $ 1 $ 685 $ 3,854 Derivative and other contracts — — 5 — 13 Total carrying value of exposure to loss—Assets $ 13,361 $ 1,259 $ 6 $ 685 $ 3,867 Carrying value of exposure to loss—Liabilities: Derivative and other contracts $ — $ — $ — $ — $ 15 Commitments, guarantees and other — — — 3 — Total carrying value of exposure to loss—Liabilities $ — $ — $ — $ 3 $ 15 At December 31, 2014 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)(3) $ 174,548 $ 26,567 $ 3,449 $ 2,040 $ 19,237 Maximum exposure to loss: Debt and equity interests(4) $ 15,028 $ 3,062 $ 13 $ 1,158 $ 3,884 Derivative and other contracts 15 2 2,212 — 164 Commitments, guarantees and other 1,054 432 — 617 429 Total maximum exposure to loss $ 16,097 $ 3,496 $ 2,225 $ 1,775 $ 4,477 Carrying value of exposure to loss—Assets: Debt and equity interests(4) $ 15,028 $ 3,062 $ 13 $ 741 $ 3,884 Derivative and other contracts 15 2 4 — 74 Total carrying value of exposure to loss—Assets $ 15,043 $ 3,064 $ 17 $ 741 $ 3,958 Carrying value of exposure to loss—Liabilities: Derivative and other contracts $ — $ — $ — $ — $ 57 Commitments, guarantees and other — — — 5 — Total carrying value of exposure to loss—Liabilities $ — $ — $ — $ 5 $ 57 (1) Mortgage- and asset-backed securitizations include VIE assets as follows: $ 13.8 billion of residential mortgages; $ 57.3 billion of commercial mortgages; $ 13.2 billion of U.S. agency collateralized mortgage obligations; and $ 42.5 billion of other consumer or commercial loans. (2) Mortgage- and asset-backed se curitizations include VIE debt and equity interests as follows: $ 1.0 billion of residential mortgages; $ 2.9 billion of commercial mortgages; $ 2.8 billion of U.S. agency collateralized mortgage obligations; and $ 6.7 billion of other consumer or commercial loans. (3) Mortgage- and asset-backed securit izations include VIE assets as follows: $ 30.8 billion of residential mortgages; $ 71.9 billion of commercial mortgages; $ 20.6 billion of U.S. agency collateralized mortgage obligations; and $ 51.2 billion of other consumer or commercial loans. (4) Mortgage - and asset-backed securitizations include VIE debt and equity interests as follows: $ 1.9 billion of residential mortgages; $ 2.4 billion of commercial mortgages; $ 4.0 billion of U.S. agency collateralized mortgage obligations; and $ 6.8 billion of other con sumer or commercial loans. |
Information Regarding SPEs | At December 31, 2015 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other(1) (dollars in millions) SPE assets (unpaid principal balance)(2) $ 22,440 $ 72,760 $ 17,978 $ 12,235 Retained interests (fair value): Investment grade $ — $ 238 $ 649 $ — Non-investment grade 160 63 — 1,136 Total retained interests (fair value) $ 160 $ 301 $ 649 $ 1,136 Interests purchased in the secondary market (fair value): Investment grade $ — $ 88 $ 99 $ — Non-investment grade 60 63 — 10 Total interests purchased in the secondary market (fair value) $ 60 $ 151 $ 99 $ 10 Derivative assets (fair value) $ — $ 343 $ — $ 151 Derivative liabilities (fair value) — — — 449 At December 31, 2014 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other(1) (dollars in millions) SPE assets (unpaid principal balance)(2) $ 26,549 $ 58,660 $ 20,826 $ 24,011 Retained interests (fair value): Investment grade $ 10 $ 117 $ 1,019 $ 57 Non-investment grade 98 120 — 1,264 Total retained interests (fair value) $ 108 $ 237 $ 1,019 $ 1,321 Interests purchased in the secondary market (fair value): Investment grade $ 32 $ 129 $ 61 $ 423 Non-investment grade 32 72 — 59 Total interests purchased in the secondary market (fair value) $ 64 $ 201 $ 61 $ 482 Derivative assets (fair value) $ — $ 495 $ — $ 138 Derivative liabilities (fair value) — — — 86 _____________ (1) Amounts i nclude CLO transactions managed by unrelated third parties. ( 2 ) Amounts include assets transferred by unrelated transferors. At December 31, 2015 Level 1 Level 2 Level 3 Total (dollars in millions) Retained interests (fair value): Investment grade $ — $ 886 $ 1 $ 887 Non-investment grade — 17 1,342 1,359 Total retained interests (fair value) $ — $ 903 $ 1,343 $ 2,246 Interests purchased in the secondary market (fair value): Investment grade $ — $ 187 $ — $ 187 Non-investment grade — 112 21 133 Total interests purchased in the secondary market (fair value) $ — $ 299 $ 21 $ 320 Derivative assets (fair value) $ — $ 466 $ 28 $ 494 Derivative liabilities (fair value) — 110 339 449 At December 31, 2014 Level 1 Level 2 Level 3 Total (dollars in millions) Retained interests (fair value): Investment grade $ — $ 1,166 $ 37 $ 1,203 Non-investment grade — 123 1,359 1,482 Total retained interests (fair value) $ — $ 1,289 $ 1,396 $ 2,685 Interests purchased in the secondary market (fair value): Investment grade $ — $ 644 $ 1 $ 645 Non-investment grade — 129 34 163 Total interests purchased in the secondary market (fair value) $ — $ 773 $ 35 $ 808 Derivative assets (fair value) $ — $ 559 $ 74 $ 633 Derivative liabilities (fair value) — 82 4 86 |
Schedule of proceeds from securitization transactions | 2015 2014 2013 (dollars in millions) Proceeds received from new securitization transactions $ 21,243 $ 20,553 $ 24,889 Proceeds from retained interests in securitization transactions 3,062 3,041 4,614 Proceeds from Sale s to CLO Entities Sponsored by Non-Affiliates . 2015 2014 2013 (dollars in millions) Proceeds from sale of corporate loans sold to those SPEs $ 1,110 $ 2,388 $ 2,347 |
Transfers of Assets Treated as Secured Financings | At December 31, 2015 At December 31, 2014 Carrying Value of: Carrying Value of: Assets Liabilities Assets Liabilities (dollars in millions) Failed sales $ 400 $ 400 $ 352 $ 344 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Requirements | |
Capital Measures | Capital Mea sures and Minimum Regulatory Capital Ratios. At December 31, 2015 At December 31, 2014 Amount Ratio Minimum Regulatory Capital Ratio(1) Amount Ratio Minimum Regulatory Capital Ratio(1) (dollars in millions) Regulatory capital and capital ratios: Common Equity Tier 1 capital $ 59,409 15.5% 4.5% $ 57,324 12.6% 4.0% Tier 1 capital 66,722 17.4% 6.0% 64,182 14.1% 5.5% Total capital 79,403 20.7% 8.0% 74,972 16.4% 8.0% Tier 1 leverage(2) — 8.3% 4.0% — 7.9% 4.0% Assets: Total RWAs $ 384,162 N/A N/A $ 456,008 N/A N/A Adjusted average assets(3) 803,574 N/A N/A 810,524 N/A N/A __________ N/A—Not Applicable. (1) Percentages represent minimum regulatory capital ratios under U.S. Basel III transitional rules. (2) Tier 1 leverage ratios are calculated under U.S. Basel III Standardized Approach transitional rules. (3) Beginning with the first quarter of 2015, in accordance with U.S. Basel III, adjusted average assets represent the denominator of the Tier 1 leverage ratio and are composed of the average daily balance of consolidated on-balance sheet assets under U.S. GAAP during the calendar quarter, adjusted for disallowed goodwill, transitional intangible assets, certain deferred tax assets, certain investments in the capital instruments of unconsolidated financial institutions and other adjustments. Regulatory Capital and Capital Ratios for the Company’s U.S. Bank Subsidiaries. Morgan Stanley Bank, N.A. At December 31, 2015 At December 31, 2014 U.S. Basel III Transitional/ Standardized Approach Required Capital Ratio(1) U.S. Basel III Transitional/ Basel I + Basel 2.5 Approach Required Capital Ratio(1) Amount Ratio Amount Ratio (dollars in millions) Common Equity Tier 1 capital $ 13,333 15.1% 6.5% $ 12,355 12.2% 6.5% Tier 1 capital 13,333 15.1% 8.0% 12,355 12.2% 8.0% Total capital 15,097 17.1% 10.0% 14,040 13.9% 10.0% Tier 1 leverage 13,333 10.2% 5.0% 12,355 10.2% 5.0% Morgan Stanley Private Bank, National Association At December 31, 2015 At December 31, 2014 U.S. Basel III Transitional/ Standardized Approach Required Capital Ratio(1) U.S. Basel III Transitional/ Basel I + Basel 2.5 Approach Required Capital Ratio(1) Amount Ratio Amount Ratio (dollars in millions) Common Equity Tier 1 capital $ 4,197 26.5% 6.5% $ 2,468 20.3% 6.5% Tier 1 capital 4,197 26.5% 8.0% 2,468 20.3% 8.0% Total capital 4,225 26.7% 10.0% 2,480 20.4% 10.0% Tier 1 leverage 4,197 10.5% 5.0% 2,468 9.4% 5.0% (1) Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. |
Total Equity (Tables)
Total Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Redeemable Noncontrolling Interests and Total Equity | |
Changes in Shares of Common Stock Outstanding | Changes in Shares of Common Stock Outstanding . 2015 2014 (in millions) Shares outstanding at beginning of period 1,951 1,945 Treasury stock purchases(1) (78) (46) Other(2) 47 52 Shares outstanding at end of period 1,920 1,951 ____________ (1 ) Treasury stock purchases include repurchases of common stock for employee tax withholding. (2) Other includes net shares issued to and forfeited from Employee stock trusts and issued for RSU conversions. |
Preferred Stock Outstanding | Preferred Stock Outstanding . Carrying Value Shares Outstanding Liquidation At At At December 31, Preference December 31, December 31, Series 2015 per Share 2015 2014 (shares in millions) (dollars in millions) A 44,000 $ 25,000 $ 1,100 $ 1,100 C(1) 519,882 1,000 408 408 E 34,500 25,000 862 862 F 34,000 25,000 850 850 G 20,000 25,000 500 500 H 52,000 25,000 1,300 1,300 I 40,000 25,000 1,000 1,000 J 60,000 25,000 1,500 — Total $ 7,520 $ 6,020 ____________ (1 ) Series C is compri sed of the issuance of 1,160,791 shares of Series C Preferred Stock to MUFG for an aggregate purchase price of $ 911 million, less the redemption of 640,909 shares of Series C Preferred Stock of $ 5 03 million, which were converted to common shares of approximately $ 705 million. Preferred Stock Issuance Description . Series Issuance Date Preferred Stock Issuance Description Redemption Price per Share(1) Redeemable on or after Date Dividend per Share(2) A(3) July 2006 44,000,000 Depositary Shares, each representing a 1/1,000th of a share of Floating Rate Non-Cumulative Preferred Stock, $0.01 par value $25,000 July 15, 2011 $255.56 C(3)(4) October 13, 2008 10% Perpetual Non-Cumulative Non-Voting Preferred Stock 1,100 October 15, 2011 25.00 E(5) September 30, 2013 34,500,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 October 15, 2023 445.31 F(5) December 10, 2013 34,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 January 15, 2024 429.69 G(5) April 29, 2014 20,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual 6.625% Non-Cumulative Preferred Stock, $0.01 par value 25,000 July 15, 2019 414.06 H(5)(6) April 29, 2014 1,300,000 Depositary Shares, each representing a 1/25th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 July 15, 2019 681.25 I(5) September 18, 2014 40,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 October 15, 2024 398.44 J(5)(7) March 19, 2015 1,500,000 Depositary Shares, each representing a 1/25th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 July 15, 2020 693.75 ____________ (1) The redemption price per share for Series A, E, F, G and I is equivalent to $25.00 per Depositary Share. The redemption price per share for Series H and J is equiv alent to $1,000 per Depositary Share. (2) Quarterly (unless noted otherwise) dividend declared in December 2015 that was paid on January 15, 2016 to preferred shareholders of record on December 31, 2015. (3) The preferred stock is redeemable at the Company's option, in whole or in part, on or after the redemption date. ( 4 ) Dividends on the Series C preferred stock are payable, on a non-cumulative basis, as and if declared by the Company’s Board of Directors, in cash, at the rate of 10 % per annum of the liquidation preference of $1,000 per share. (5 ) The preferred stock i s redeemable at the Company’s option ( i ) in whole or in part, from time to time, on any dividend payment date on or after the redemption da te or (ii) in whole but not in part at any time within 90 days following a regulatory capital treatment event (as de scribed in the terms of that series). (6 ) Dividend on Series H preferred stock is payable semi annually until July 15, 2019 and quarterly thereafter. (7 ) Dividend on Series J preferred stock is payable semi annually until July 15, 2020 and quarterly th ereafter. In addition to the redemption price per share, the redemption price includes any declared and unpaid dividends up to, but excluding, the date fixed for redempti on, without accumulation of any undeclared dividends. |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | Changes in AOCI by Component, Net of Noncontrolling Interests. Foreign Currency Translation Adjustments Change in Net Unrealized Gains (Losses) on AFS Securities Pensions, Postretirement and Other Total (dollars in millions) Balance at December 31, 2014 $ (663) $ (73) $ (512) $ (1,248) Other comprehensive income (loss) before reclassifications (300) (193) 132 (361) Amounts reclassified from AOCI — (53) 6 (47) Net other comprehensive income (loss) during the period (300) (246) 138 (408) Balance at December 31, 2015 $ (963) $ (319) $ (374) $ (1,656) Foreign Currency Translation Adjustments Change in Net Unrealized Gains (Losses) on AFS Securities Pensions, Postretirement and Other Total (dollars in millions) Balance at December 31, 2013 $ (266) $ (282) $ (545) $ (1,093) Other comprehensive income (loss) before reclassifications (397) 233 24 (140) Amounts reclassified from AOCI — (24) 9 (15) Net other comprehensive income (loss) during the period (397) 209 33 (155) Balance at December 31, 2014 $ (663) $ (73) $ (512) $ (1,248) Foreign Currency Translation Adjustments Change in Net Unrealized Gains (Losses) on AFS Securities Pensions, Postretirement and Other Total (dollars in millions) Balance at December 31, 2012 $ (123) $ 151 $ (544) $ (516) Other comprehensive income (loss) before reclassifications (143) (406) (16) (565) Amounts reclassified from AOCI — (27) 15 (12) Net other comprehensive income (loss) during the period (143) (433) (1) (577) Balance at December 31, 2013 $ (266) $ (282) $ (545) $ (1,093) |
Cumulative Foreign Currency Translation Adjustments from Net Investments and Net Investment Hedges | Effects on Cumulative Foreign Currency Translation Adjustments . At At December 31, December 31, 2015 2014 (dollars in millions) Net investments in non-U.S. dollar functional currency subsidiaries subject to hedges $ 8,170 $ 9,110 Cumulative foreign currency translation adjustments resulting from net investments in subsidiaries with a non-U.S. dollar functional currency $ (1,996) $ (1,262) Cumulative foreign currency translation adjustments resulting from realized or unrealized losses on hedges, net of tax 1,033 599 Total cumulative foreign currency translation adjustments, net of tax $ (963) $ (663) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted EPS | 2015 2014 2013 (in millions, except for per share data) Basic EPS: Income from continuing operations $ 6,295 $ 3,681 $ 3,656 Income (loss) from discontinued operations (16) (14) (43) Net income 6,279 3,667 3,613 Net income applicable to redeemable noncontrolling interests — — 222 Net income applicable to nonredeemable noncontrolling interests 152 200 459 Net income applicable to Morgan Stanley 6,127 3,467 2,932 Less: Preferred dividends (452) (311) (120) Less: Wealth Management JV redemption value adjustment — — (151) Less: Allocation of (earnings) loss to participating RSUs(1) (4) (4) (6) Earnings applicable to Morgan Stanley common shareholders $ 5,671 $ 3,152 $ 2,655 Weighted average common shares outstanding 1,909 1,924 1,906 Earnings per basic common share: Income from continuing operations $ 2.98 $ 1.65 $ 1.42 Income (loss) from discontinued operations (0.01) (0.01) (0.03) Earnings per basic common share $ 2.97 $ 1.64 $ 1.39 Diluted EPS: Earnings applicable to Morgan Stanley common shareholders $ 5,671 $ 3,152 $ 2,655 Weighted average common shares outstanding 1,909 1,924 1,906 Effect of dilutive securities: Stock options and RSUs(1) 44 47 51 Weighted average common shares outstanding and common stock equivalents 1,953 1,971 1,957 Earnings per diluted common share: Income from continuing operations $ 2.91 $ 1.61 $ 1.38 Income (loss) from discontinued operations (0.01) (0.01) (0.02) Earnings per diluted common share $ 2.90 $ 1.60 $ 1.36 _____________ (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 | 2015 2014 2013 (shares in millions) Stock options 11 13 33 RSUs and performance-based stock units 1 2 3 Total 12 15 36 |
Interest Income and Interest 47
Interest Income and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Interest Income And Interest Expense | |
Schedule of Details of Interest Income and Interest Expense | 2015 2014 2013 (dollars in millions) Interest income(1): Trading assets(2) $ 2,262 $ 2,109 $ 2,292 Investment securities 876 613 447 Loans 2,163 1,690 1,121 Interest bearing deposits with banks 108 109 129 Securities purchased under agreements to resell and Securities borrowed(3) (560) (298) (20) Customer receivables and Other(4) 986 1,190 1,240 Total interest income $ 5,835 $ 5,413 $ 5,209 Interest expense(1): Deposits $ 78 $ 106 $ 159 Short-term borrowings 16 4 20 Long-term borrowings 3,481 3,609 3,758 Securities sold under agreements to repurchase and Securities loaned(5) 1,024 1,216 1,469 Customer payables and Other(6) (1,857) (1,257) (975) Total interest expense $ 2,742 $ 3,678 $ 4,431 Net interest $ 3,093 $ 1,735 $ 778 _____________ (1) Interest income and expense are recorded within the 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. (3) Includes fees paid on Securities borrowed. (4) Includes interest from customer receivables and other interest earning assets. (5) Includes fees received on Securities loaned. (6) Includes fees received from prime brokerage custom ers for stock loan transactions incurred to cover customers’ short positions. |
Deferred Compensation Plans (Ta
Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Compensation Arrangements [Abstract] | |
Components of Stock-based Compensation Expense (Net of Cancellations) | 2015 2014 2013 (dollars in millions) Restricted stock units(1) $ 1,080 $ 1,212 $ 1,140 Stock options (3) 5 15 Performance-based stock units 26 45 29 Total $ 1,103 $ 1,262 $ 1,184 (1) Amounts for 2015, 2014 and 2013 include $ 68 million, $ 31 million and $ 25 million, respectively, related to stock-based awards that were granted in 2016, 2015 and 2014, respectively, to employees who satisfied retirement-eligible requirements under award terms that do not contain a service period. |
Activity Relating to Vested and Unvested RSUs | 2015 Number of Shares Weighted Average Grant Date Fair Value (shares in millions) RSUs at beginning of period 121 $ 25.52 Granted 34 34.76 Conversions to common stock (47) 23.57 Canceled (3) 28.72 RSUs at end of period(1) 105 29.26 (1) At December 31, 2015, approximately 98 million RSUs with a weighted average grant date fair value of $ 29.17 were vested or expected to vest. |
Activity Relating to Unvested RSUs | 2015 Number of Shares Weighted Average Grant Date Fair Value (shares in millions) Unvested RSUs at beginning of period 87 $ 26.44 Granted 34 34.76 Vested (48) 27.06 Canceled (3) 28.72 Unvested RSUs at end of period(1) 70 29.91 (1) Unvested RSUs represent awards where recipients have yet to satisfy either the explicit vesting terms or retirement-eligible requirements. At December 31, 2015, approximately 63 million unvested RSUs with a weighted average grant date fair value of $ 29.84 were expected to vest. |
Stock Options Valuation Assumptions | Grant Year Risk-Free Interest Rate Expected Life Expected Stock Price Volatility Expected Dividend Yield 2013 0.6% 3.9 years 32.0% 0.9% |
Activity Relating to Stock Options | 2015 Number of Options Weighted Average Exercise Price (options in millions) Options outstanding at beginning of period 19 $ 51.30 Expired (2) 45.32 Options outstanding at end of period(1) 17 52.26 Options exercisable at end of period 15 55.02 (1) At December 31, 2015, approximately 16 million options with a weighted average exercise price of $ 52.43 were vested. |
Information Relating to Stock Options Outstanding and Excercisable | At December 31, 2015 Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Exercise Price Average Remaining Life (Years) Number Exercisable Weighted Average Exercise Price Average Remaining Life (Years) (options in millions) $22.00 - $39.99 6 $ 26.85 2.0 4 $ 28.13 2.0 $50.00 - $59.99 1 52.43 0.3 1 52.43 0.3 $60.00 - $76.99 10 66.75 0.9 10 66.75 0.9 Total 17 15 |
Performance-based Stock Units Formular Table | Minimum Maximum Grant Year MS Average ROE Multiplier MS Average ROE Multiplier 2015 Less than 5% 0.0 11.5% or more 1.5 2014 Less than 5% 0.0 11.5% or more 1.5 2013 Less than 5% 0.0 13% or more 2.0 Minimum Maximum Grant Year Relative TSR Multiplier Relative TSR Multiplier 2015 Less than -50% 0.0 25% or more 1.5 2014 Less than -50% 0.0 25% or more 1.5 2013 Less than -50% 0.0 50% or more 2.0 |
Performance-Based Stock Unit Awards Valuation Assumptions | Grant Year Risk-Free Interest Rate Expected Stock Price Volatility Expected Dividend Yield 2015 0.9% 29.6% 0.0% 2014 0.8% 44.2% 0.0% 2013 0.4% 45.4% 0.0% |
Performance-based Stock Units Roll Forward Table | 2015 Number of Shares (in millions) PSUs at beginning of period 4 Awarded 2 Conversions to common stock (2) PSUs at end of period 4 |
Components of Deferred Compensation Expense (Net of Cancellations) | 2015 2014 2013 (dollars in millions) Deferred cash-based awards(1) $ 660 $ 1,757 $ 1,490 Return on referenced investments 112 408 772 Total $ 772 $ 2,165 $ 2,262 _______________ (1) Amounts for 2015, 2014 and 2013 include $ 144 million, $ 92 million and $ 78 million, respectively, related to deferred cash-based awards that were granted in 2016, 2015 and 2014 , respectively, to employees who satisfied retirement -eligible requirements under award terms that do not contain a service period. |
Schedule of Unrecognized Compensation Cost | 2016 2017 Thereafter Total (dollars in millions) Stock-based awards $ 453 $ 198 $ 162 $ 813 Deferred cash-based awards 545 298 128 971 Total $ 998 $ 496 $ 290 $ 1,784 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans | |
Components of Net Periodic Benefit Expense (Income) | Pension Plans Other Postretirement Plans 2015 2014 2013 2015 2014 2013 (dollars in millions) Service cost, benefits earned during the period $ 19 $ 20 $ 23 $ 1 $ 2 $ 4 Interest cost on projected benefit obligation 152 154 151 3 5 7 Expected return on plan assets (120) (110) (114) — — — Net amortization of prior service credit (1) — — (18) (14) (13) Net amortization of actuarial loss 26 22 36 — — 3 Curtailment loss — 3 — — — — Settlement loss 2 2 1 — — — Net periodic benefit expense (income) $ 78 $ 91 $ 97 $ (14) $ (7) $ 1 |
Amounts Recognized in Other Comprehensive Loss (Income) on a Pre-Tax Basis | Pension Plans Other Postretirement Plans 2015 2014 2013 2015 2014 2013 (dollars in millions) Net loss (gain) $ (212) $ 18 $ 87 $ 3 $ 9 $ (52) Prior service cost (credit) (1) 2 3 9 (64) — Amortization of prior service credit 1 — — 18 14 13 Amortization of net loss (28) (27) (37) — — (3) Total recognized in other comprehensive loss (income) $ (240) $ (7) $ 53 $ 30 $ (41) $ (42) |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Costs | Pension Plans Other Postretirement Plans 2015 2014 2013 2015 2014 2013 Discount rate(1) 3.86% 4.74% 3.95% 3.77% 3.77% 3.88% Expected long-term rate of return on plan assets 3.59% 3.75% 3.73% N/A N/A N/A Rate of future compensation increases 2.85% 1.06% 0.98% N/A N/A N/A ________ N/A—Not Applicable. (1) The Other p ostretirement plans’ discount rate for 201 5 changed to 3.77% from 3 . 69 % effective April 30, 2015 with the amendment and remeasurement of the Morgan Stanley Medical Plan . |
Reconciliation of Changes in Benefit Obligation and Fair Value of Plan Assets | Pension Plans Other Postretirement Plans 2015 2014 2015 2014 (dollars in millions) Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 4,007 $ 3,330 $ 75 $ 128 Service cost 19 20 1 2 Interest cost 152 154 3 5 Actuarial loss (gain)(1) (267) 555 4 5 Plan amendments (1) 2 9 (64) Plan curtailments (9) (1) — — Plan settlements (29) (8) — — Change in mortality assumptions(2) (46) 203 (1) 4 Benefits paid (194) (213) (4) (5) Other, including foreign currency exchange rate changes (28) (35) — — Benefit obligation at end of year $ 3,604 $ 4,007 $ 87 $ 75 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of year $ 3,705 $ 2,867 $ — $ — Actual return on plan assets 9 850 — — Employer contributions(3) 31 244 4 5 Benefits paid (194) (213) (4) (5) Plan settlements (29) (8) — — Other, including foreign currency exchange rate changes (25) (35) — — Fair value of plan assets at end of year $ 3,497 $ 3,705 $ — $ — Funded (unfunded) status $ (107) $ (302) $ (87) $ (75) ________ (1) Amounts primarily reflect impact of year-over-year discount rate fluctuations. (2) Amounts r epresent adoption of new mortality tables published by the Society of Actuaries. ( 3 ) In December 2014, an elective $ 200 million co ntribution was made to the U.S. Qualified Plan primarily to offset the increase in liability due to the p lan’s adoption of new mortality tables. |
Summary of Funded Status | Pension Plans Other Postretirement Plans At December 31, 2015 At December 31, 2014 At December 31, 2015 At December 31, 2014 (dollars in millions) Amounts recognized in the consolidated statements of financial condition consist of: Assets $ 382 $ 224 $ — $ — Liabilities (489) (526) (87) (75) Net amount recognized $ (107) $ (302) $ (87) $ (75) Amounts recognized in accumulated other comprehensive loss consist of: Prior service cost (credit) $ (1) $ (1) $ (34) $ (61) Net loss (gain) 626 866 (2) (5) Net loss (gain) recognized $ 625 $ 865 $ (36) $ (66) |
Pension Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets | At December 31, 2015 At December 31, 2014 (dollars in millions) Projected benefit obligation $ 543 $ 626 Fair value of plan assets 54 100 |
Pension Plans with Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | At December 31, 2015 At December 31, 2014 (dollars in millions) Accumulated benefit obligation $ 531 $ 588 Fair value of plan assets 54 82 |
Weighted Average Assumptions used to Determine Benefit Obligations | Pension Plans Other Postretirement Plans At December 31, 2015 At December 31, 2014 At December 31, 2015 At December 31, 2014 Discount rate 4.27% 3.86% 4.13% 3.69% Rate of future compensation increase 3.19% 2.85% N/A N/A _______ N/A—Not Applicable. |
Assumed Health Care Cost Trend Rates used to Determine the U.S. Postretirement Benefit Obligations | At December 31, 2015 At December 31, 2014 Health care cost trend rate assumed for next year: Medical 6.25% 6.88-7.23% Prescription 11.00% 7.87% Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.50% 4.50% Year that the rate reaches the ultimate trend rate 2038 2029 |
Effects of Changes in Assumed Health Care Cost Trend Rates | One-Percentage Point Increase One-Percentage Point (Decrease) (dollars in millions) Total 2015 postretirement service and interest cost N/M N/M December 31, 2015 postretirement benefit obligation $ 3 $ (3) |
Fair Value of Net Pension Plan Assets | At December 31, 2015 Level 1 Level 2 Level 3 Total (dollars in millions) Assets: Investments: Cash and cash equivalents(1) $ 28 $ — $ — $ 28 U.S. government and agency securities: U.S. Treasury securities 1,398 — — 1,398 U.S. agency securities — 263 — 263 Total U.S. government and agency securities 1,398 263 — 1,661 Corporate and other debt: State and municipal securities — 2 — 2 Collateralized debt obligations — 22 — 22 Total corporate and other debt — 24 — 24 Derivative contracts — 224 — 224 Commingled trust funds(2) — 1,298 — 1,298 Foreign funds(3) — 338 — 338 Other investments — — 35 35 Total investments 1,426 2,147 35 3,608 Receivables: Other receivables(1) — 54 — 54 Total receivables — 54 — 54 Total assets $ 1,426 $ 2,201 $ 35 $ 3,662 Liabilities: Derivative contracts $ — $ 65 $ — $ 65 Other liabilities(1) — 100 — 100 Total liabilities $ — $ 165 $ — $ 165 Net pension assets $ 1,426 $ 2,036 $ 35 $ 3,497 At December 31, 2014 Level 1 Level 2 Level 3 Total (dollars in millions) Assets: Investments: Cash and cash equivalents(1) $ 63 $ — $ — $ 63 U.S. government and agency securities: U.S. Treasury securities 1,332 — — 1,332 U.S. agency securities — 265 — 265 Total U.S. government and agency securities 1,332 265 — 1,597 Corporate and other debt: State and municipal securities — 2 — 2 Collateralized debt obligations — 62 — 62 Total corporate and other debt — 64 — 64 Derivative contracts — 292 — 292 Derivative-related cash collateral receivable — 2 — 2 Commingled trust funds(2) — 1,432 — 1,432 Foreign funds(3) — 347 — 347 Other investments — — 36 36 Total investments 1,395 2,402 36 3,833 Receivables: Other receivables(1) — 27 — 27 Total receivables — 27 — 27 Total assets $ 1,395 $ 2,429 $ 36 $ 3,860 Liabilities: Derivative contracts $ — $ 33 $ — $ 33 Derivative-related cash collateral payable — 2 — 2 Other liabilities(1) — 120 — 120 Total liabilities $ — $ 155 $ — $ 155 Net pension assets $ 1,395 $ 2,274 $ 36 $ 3,705 ________________________ (1) Cash and cash equivalents, other receivables and other liabilities are valued at their carrying value, which approximates fair value. (2) Commingled trust funds consist of investments in fixed income funds and money market funds of $ 1,239 million and $ 59 million, respectively, at December 31, 2015 and $ 1,280 million and $ 152 million, respectively, at December 31, 2014 . (3) Foreign funds include investments in fixed income funds, liquidity funds and targeted cash flow fun ds of $ 149 million, $ 98 million and $ 91 million, respectively, at December 31, 2015 and $ 158 million, $ 53 million and $ 136 million, respectively, at December 31, 2014 . |
Changes in Level 3 Pension Assets | Changes in Level 3 Pension Assets. 2015 2014 (dollars in millions) Balance at beginning of period $ 36 $ 38 Actual return on plan assets related to assets held at end of period (4) (5) Actual return on plan assets related to assets sold during the year — — Purchases, sales, other settlements and issuances, net 3 3 Net transfer in and/or (out) of Level 3 — — Balance at end of period $ 35 $ 36 |
Expected Benefit Payments | At December 31, 2015 Pension Plans Other Postretirement Plans (dollars in millions) 2016 $ 153 $ 5 2017 139 6 2018 136 6 2019 141 6 2020 150 7 2021-2025 858 32 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Provision for (Benefit from) Income Taxes from Continuing Operations | 2015 2014 2013 (dollars in millions) Current: U.S. federal $ (604) $ 229 $ (102) U.S. state and local 260 164 140 Non-U.S.: United Kingdom 88 178 (16) Japan 114 88 90 Hong Kong 34 36 16 Other(1) 258 301 355 $ 150 $ 996 $ 483 Deferred: U.S. federal $ (207) $ (3) $ (748) U.S. state and local (56) 1 (64) Non-U.S.: United Kingdom (31) (75) 77 Japan 56 262 170 Hong Kong 9 (14) 35 Other(1) (11) (265) (114) $ (240) $ (94) $ (644) Provision for (benefit from) income taxes from continuing operations $ 1,704 $ 1,263 $ 423 Provision for (benefit from) income taxes from discontinued operations $ (4) $ (5) $ (2) _______________ (1) For 2015, Non-U.S. other jurisdictions included significant total tax provisions of $ 68 million, $ 62 million, $ 58 million, $ 45 million and $ 42 million from Mexico, Brazil, Netherlands, India and France, respectively. F or 2014 , Non-U.S. other jurisdictions included significant total tax provisions of $ 44 million, $ 38 million and $ 38 million from Brazil, India and Mexico, respectively . For 2013, Non-U.S. other jurisdictions included significant total tax provisions (benefits) of $ 59 million, $ 54 million and $ (156) million from Brazil, India and Luxembourg, respectively. |
Reconciliation of Provision for (Benefit from) Income Taxes to the U.S. Federal Statutory Income Tax Rate | 2015 2014 2013 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % U.S. state and local income taxes, net of U.S. federal income tax benefits 1.5 6.5 2.3 Domestic tax credits (1.5) (5.0) (3.2) Tax exempt income (0.2) (3.5) (2.5) Non-U.S. earnings: Foreign Tax Rate Differential (8.7) (22.5) (6.0) Change in Reinvestment Assertion — 1.4 (1.4) Change in Foreign Tax Rates — — 0.1 Wealth Management Legal Entity Restructuring — (38.7) — Non-deductible legal expenses — 25.5 0.9 Other (0.2) (1.2) (5.4) Effective income tax rate 25.9 % (2.5) % 19.8 % |
Significant Components of Deferred Tax Assets and Liabilities | At December 31, At December 31, 2015 2014 (dollars in millions) Gross deferred tax assets: Tax credits and loss carryforwards $ 1,987 $ 3,833 Employee compensation and benefit plans 3,514 3,715 Valuation and liability allowances 846 661 Valuation of inventory, investments and receivables 738 586 Other 35 — Total deferred tax assets 7,120 8,795 Deferred tax assets valuation allowance 139 34 Deferred tax assets after valuation allowance $ 6,981 $ 8,761 Gross deferred tax liabilities: Non-U.S. operations $ 269 $ 925 Fixed assets 716 565 Other — 65 Total deferred tax liabilities $ 985 $ 1,555 Net deferred tax assets $ 5,996 $ 7,206 |
Reconciliation of Unrecognized Tax Benefits | Unrecognized Tax Benefits (dollars in millions) Balance at December 31, 2012 $ 4,065 Increase based on tax positions related to the current period 51 Increase based on tax positions related to prior periods 267 Decrease based on tax positions related to prior periods (141) Decrease related to settlements with taxing authorities (146) Balance at December 31, 2013 $ 4,096 Increase based on tax positions related to the current period $ 135 Increase based on tax positions related to prior periods 100 Decrease based on tax positions related to prior periods (2,080) Decrease related to settlements with taxing authorities (19) Decrease related to a lapse of applicable statute of limitations (4) Balance at December 31, 2014 $ 2,228 Increase based on tax positions related to the current period $ 230 Increase based on tax positions related to prior periods 114 Decrease based on tax positions related to prior periods (753) Decrease related to settlements with taxing authorities (7) Decrease related to a lapse of applicable statute of limitations (8) Balance at December 31, 2015 $ 1,804 |
Major Tax Jurisdictions in Which the Company and Affiliates Operate and the Earliest Tax Year Subject to Examination | Jurisdiction Tax Year U.S. 1999 New York State and New York City 2007 Hong Kong 2009 U.K. 2010 Japan 2013 |
Income from Continuing Operations Before Income Tax Expense (Benefit) | Income from Continuing Operations before Income Tax Expense (Benefit). 2015 2014 2013 (dollars in millions) U.S. $ 5,360 $ 1,805 $ 1,738 Non-U.S.(1) 3,135 1,786 2,820 $ 8,495 $ 3,591 $ 4,558 (1) Non-U.S. income is defined as income generated from operations located outside the U.S. |
Segment and Geographic Inform51
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Selected Financial Information by Segments | 2015 Institutional Securities Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues $ 17,800 $ 12,144 $ 2,331 $ (213) $ 32,062 Interest income 3,190 3,105 2 (462) 5,835 Interest expense 3,037 149 18 (462) 2,742 Net interest 153 2,956 (16) — 3,093 Net revenues $ 17,953 $ 15,100 $ 2,315 $ (213) $ 35,155 Income from continuing operations before income taxes $ 4,671 $ 3,332 $ 492 $ — $ 8,495 Provision for income taxes(1) 825 1,247 128 — 2,200 Income from continuing operations 3,846 2,085 364 — 6,295 Discontinued operations: Income (loss) from discontinued operations before income taxes (24) — 1 — (23) Provision for (benefit from) income taxes (7) — — — (7) Income (loss) from discontinued operations (17) — 1 — (16) Net income 3,829 2,085 365 — 6,279 Net income applicable to nonredeemable noncontrolling interests 133 — 19 — 152 Net income applicable to Morgan Stanley $ 3,696 $ 2,085 $ 346 $ — $ 6,127 2014 Institutional Securities(2) Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues(3)(4) $ 17,463 $ 12,549 $ 2,728 $ (200) $ 32,540 Interest income 3,389 2,516 2 (494) 5,413 Interest expense 3,981 177 18 (498) 3,678 Net interest (592) 2,339 (16) 4 1,735 Net revenues $ 16,871 $ 14,888 $ 2,712 $ (196) $ 34,275 Income (loss) from continuing operations before income taxes $ (58) $ 2,985 $ 664 $ — $ 3,591 Provision for (benefit from) income taxes(5) (90) (207) 207 — (90) Income from continuing operations 32 3,192 457 — 3,681 Discontinued operations: Income (loss) from discontinued operations before income taxes (26) — 7 — (19) Provision for (benefit from) income taxes (7) — 2 — (5) Income (loss) from discontinued operations (19) — 5 — (14) Net income 13 3,192 462 — 3,667 Net income applicable to nonredeemable noncontrolling interests 109 — 91 — 200 Net income (loss) applicable to Morgan Stanley $ (96) $ 3,192 $ 371 $ — $ 3,467 2013 Institutional Securities Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues $ 16,620 $ 12,268 $ 3,060 $ (233) $ 31,715 Interest income 3,572 2,100 9 (472) 5,209 Interest expense 4,673 225 10 (477) 4,431 Net interest (1,101) 1,875 (1) 5 778 Net revenues $ 15,519 $ 14,143 $ 3,059 $ (228) $ 32,493 Income from continuing operations before income taxes $ 946 $ 2,604 $ 1,008 $ — $ 4,558 Provision for (benefit from) income taxes(6) (315) 910 307 — 902 Income from continuing operations 1,261 1,694 701 — 3,656 Discontinued operations: Income (loss) from discontinued operations (81) (1) 9 1 (72) Provision for (benefit from) income taxes (29) — — — (29) Income (loss) from discontinued operations (52) (1) 9 1 (43) Net income 1,209 1,693 710 1 3,613 Net income applicable to redeemable noncontrolling interests 1 221 — — 222 Net income applicable to nonredeemable noncontrolling interests 277 — 182 — 459 Net income applicable to Morgan Stanley $ 931 $ 1,472 $ 528 $ 1 $ 2,932 (1) The Company’s effective tax rate from continuin g operations for 2015 included net discrete tax benefit s of $ 564 million attributable to the Institutio nal Securities business segment (see Note 20 ). (2 ) The Institutional Securities business segment Net loss in 2014 was primarily driven by higher legal expenses (see Note 12 ) . (3) In September 2014, the Company sold a retail property space resulting in a gain on sale of $ 141 million (within Institution al Securities $ 84 million, Wealth Management $ 40 million and Investment Management $ 17 million), which was included within Other revenues on the consolidated statements of income. (4) On July 1, 2014, the Company completed the sale of its ownership stake i n TransMontaigne Inc. The gain on sale, which was included in continuing operations, was approximately $ 112 million within the Institutional Securities business segment for 2014. (5 ) The Company’s effective tax rate from continuing operations for 2014 inc luded net discrete tax benefits of $ 1,390 million and $ 839 million attributable to the Wealth Management and Institutional Securities business segments, respectively (see Note 20). (6) The Company’s effective tax rate from continuing operations for 2013 included net discrete tax benefits of $ 407 million attributable to the Institutional Securities business segment (see Note 20 ). Total Assets by Business Segment . |
Assets by Segments | Institutional Securities Wealth Management Investment Management(1) Total(2) (dollars in millions) At December 31, 2015 $ 602,714 $ 179,708 $ 5,043 $ 787,465 At December 31, 2014 $ 630,341 $ 165,147 $ 6,022 $ 801,510 (1) During 2015 and 2014, the Company deconsolidated approximately $244 million and $1.6 billion, respectively, in net assets previously attributable to nonredeemable noncontrolling interests that were primarily related to or associated with real estate funds sponsored by the Company (see Note 13). (2) Corporate assets have been fully allocated to the business segments. |
Net Revenues by Geographic Area | Net Revenues by Region. 2015 2014 2013 (dollars in millions) Americas $ 25,080 $ 25,140 $ 23,358 EMEA 5,353 4,772 4,542 Asia-Pacific 4,722 4,363 4,593 Net revenues $ 35,155 $ 34,275 $ 32,493 |
Assets by Geographic Area | Total Assets by Region. At At December 31, 2015 December 31, 2014 (dollars in millions) Americas $ 569,369 $ 622,556 EMEA 146,177 104,152 Asia-Pacific 71,919 74,802 Total $ 787,465 $ 801,510 |
Parent Company (Tables)
Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure | |
Parent Company Only - Condensed Statements of Financial Condition | December 31, December 31, 2015 2014 Assets Cash and due from banks $ 5,169 $ 5,068 Deposits with banking subsidiaries 4,311 4,556 Interest bearing deposits with banks 2,421 1,126 Trading assets, at fair value 354 5,014 Securities purchased under agreement to resell with affiliates 47,060 41,601 Advances to subsidiaries: Bank and bank holding company 18,380 19,982 Non-bank 106,192 112,863 Equity investments in subsidiaries: Bank and bank holding company 25,787 24,573 Non-bank 34,927 34,649 Other assets 6,259 7,805 Total assets $ 250,860 $ 257,237 Liabilities Short-term borrowings $ 40 $ 695 Trading liabilities, at fair value 138 4,042 Payables to subsidiaries 29,220 35,517 Other liabilities and accrued expenses 2,189 2,342 Long-term borrowings 144,091 143,741 Total liabilities 175,678 186,337 Equity Preferred stock (see Note 15) 7,520 6,020 Common stock, $0.01 par value: Shares authorized: 3,500,000,000 at December 31, 2015 and December 31, 2014; Shares issued: 2,038,893,979 at December 31, 2015 and December 31, 2014; Shares outstanding: 1,920,024,027 and 1,950,980,142 at December 31, 2015 and December 31, 2014, respectively 20 20 Additional paid-in capital 24,153 24,249 Retained earnings 49,204 44,625 Employee stock trusts 2,409 2,127 Accumulated other comprehensive loss (1,656) (1,248) Common stock held in treasury, at cost, $0.01 par value: Shares outstanding: 118,869,952 and 87,913,837 at December 31, 2015 and December 31, 2014, respectively (4,059) (2,766) Common stock issued to employee stock trusts (2,409) (2,127) Total shareholders' equity 75,182 70,900 Total liabilities and equity $ 250,860 $ 257,237 |
Parent Company Only - Condensed Statements of Income and Comprehensive Income | 2015 2014 2013 Revenues: Dividends from non-bank subsidiaries $ 4,942 $ 2,641 $ 1,113 Trading 574 601 (635) Investments — (1) — Other 53 10 27 Total non-interest revenues 5,569 3,251 505 Interest income 3,055 2,594 2,783 Interest expense 4,073 3,970 4,053 Net interest (1,018) (1,376) (1,270) Net revenues 4,551 1,875 (765) Non-interest expenses: Non-interest expenses (195) 214 185 Income (loss) before income taxes 4,746 1,661 (950) Provision for (benefit from) income taxes (83) (423) (354) Net income (loss) before undistributed gain of subsidiaries 4,829 2,084 (596) Undistributed gain of subsidiaries 1,298 1,383 3,528 Net income 6,127 3,467 2,932 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments (300) (397) (143) Change in net unrealized gains (losses) on AFS securities (246) 209 (433) Pensions, postretirement and other 138 33 (1) Comprehensive income $ 5,719 $ 3,312 $ 2,355 Net income $ 6,127 $ 3,467 $ 2,932 Preferred stock dividends and other 456 315 277 Earnings applicable to Morgan Stanley common shareholders $ 5,671 $ 3,152 $ 2,655 |
Parent Company Only - Condensed Statements of Cash Flows | 2015 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 6,127 $ 3,467 $ 2,932 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Deferred income taxes 63 98 (303) Compensation payable in common stock and options 1,104 1,260 1,180 Amortization (83) (182) (47) Undistributed gain of subsidiaries (1,298) (1,383) (3,528) Changes in assets and liabilities: Trading assets, net of Trading liabilities (2,958) 2,307 (7,332) Other assets 1,474 (490) (165) Other liabilities and accrued expenses (1,711) 488 (4,192) Net cash provided by (used for) operating activities 2,718 5,565 (11,455) CASH FLOWS FROM INVESTING ACTIVITIES Advances to and investments in subsidiaries 1,364 (7,790) 7,458 Securities purchased under agreement to resell with affiliates (5,459) (7,853) 14,745 Net cash provided by (used for) investing activities (4,095) (15,643) 22,203 CASH FLOWS FROM FINANCING ACTIVITIES Net proceeds from (payments for) short-term borrowings (655) 189 279 Proceeds from: Excess tax benefits associated with stock-based awards 211 101 10 Issuance of preferred stock, net of issuance costs 1,493 2,782 1,696 Issuance of long-term borrowings 28,575 33,031 22,944 Payments for: Long-term borrowings (22,803) (28,917) (31,928) Repurchases of common stock and employee tax withholdings (2,773) (1,458) (691) Cash dividends (1,455) (904) (475) Net cash provided by (used for) financing activities 2,593 4,824 (8,165) Effect of exchange rate changes on cash and cash equivalents (65) (208) (100) Net increase (decrease) in cash and cash equivalents 1,151 (5,462) 2,483 Cash and cash equivalents, at beginning of period 10,750 16,212 13,729 Cash and cash equivalents, at end of period $ 11,901 $ 10,750 $ 16,212 Cash and cash equivalents include: Cash and due from banks $ 5,169 $ 5,068 $ 2,296 Deposits with banking subsidiaries 4,311 4,556 7,070 Interest bearing deposits with banks 2,421 1,126 6,846 Cash and cash equivalents, at end of period $ 11,901 $ 10,750 $ 16,212 |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data | |
Schedule of Quarterly Financial Information | 2015 Quarter 2014 Quarter First(1) Second Third Fourth(2) First Second(3) Third(4) Fourth(5) (dollars in millions, except per share data) Total non-interest revenues $ 9,311 $ 9,045 $ 7,005 $ 6,701 $ 8,688 $ 8,341 $ 8,350 $ 7,161 Net interest 596 698 762 1,037 308 267 557 603 Net revenues 9,907 9,743 7,767 7,738 8,996 8,608 8,907 7,764 Total non-interest expenses 7,052 7,016 6,293 6,299 6,626 6,676 6,687 10,695 Income (loss) from continuing operations before income taxes 2,855 2,727 1,474 1,439 2,370 1,932 2,220 (2,931) Provision for (benefit from) income taxes 387 894 423 496 785 15 463 (1,353) Income (loss) from continuing operations 2,468 1,833 1,051 943 1,585 1,917 1,757 (1,578) Discontinued operations: Income (loss) from discontinued operations before income taxes (8) (2) (4) (10) (2) (1) (8) (8) Provision for (benefit from) income taxes (3) — (2) (3) (1) (1) (3) — Income (loss) from discontinued operations (5) (2) (2) (7) (1) — (5) (8) Net income (loss) 2,463 1,831 1,049 936 1,584 1,917 1,752 (1,586) Net income applicable to nonredeemable noncontrolling interests 69 24 31 28 79 18 59 44 Net income (loss) applicable to Morgan Stanley $ 2,394 $ 1,807 $ 1,018 $ 908 $ 1,505 $ 1,899 $ 1,693 $ (1,630) Preferred stock dividends and other 80 142 79 155 56 79 64 119 Earnings (loss) applicable to Morgan Stanley common shareholders $ 2,314 $ 1,665 $ 939 $ 753 $ 1,449 $ 1,820 $ 1,629 $ (1,749) Earnings (loss) per basic common share(6): Income (loss) from continuing operations $ 1.21 $ 0.87 $ 0.49 $ 0.40 $ 0.75 $ 0.94 $ 0.85 $ (0.91) Income (loss) from discontinued operations (0.01) — — — — — — — Earnings (loss) per basic common share $ 1.20 $ 0.87 $ 0.49 $ 0.40 $ 0.75 $ 0.94 $ 0.85 $ (0.91) Earnings (loss) per diluted common share(6): Income (loss) from continuing operations $ 1.18 $ 0.85 $ 0.48 $ 0.39 $ 0.74 $ 0.92 $ 0.83 $ (0.91) Income (loss) from discontinued operations — — — — — — — — Earnings (loss) per diluted common share $ 1.18 $ 0.85 $ 0.48 $ 0.39 $ 0.74 $ 0.92 $ 0.83 $ (0.91) Dividends declared per common share(7) $ 0.10 $ 0.15 $ 0.15 $ 0.15 $ 0.05 $ 0.10 $ 0.10 $ 0.10 Book value per common share $ 33.80 $ 34.52 $ 34.97 $ 35.24 $ 32.38 $ 33.46 $ 34.16 $ 33.25 (1 ) The f irst quarter of 2015 included net discrete tax benefit s of $ 564 million, primarily associated with the repatriation of non-U.S. earnings at a cost lower than originally estimated due to an internal restructuring to simplify the Company’s legal entity organization in the U. K. (see Note 20). (2) During the fourth quarter of 2015, the Company incurred specific severance costs of approximately $ 155 million, which is included in Compensation and benefits expenses in the consolidated state ments of income, associated with the Company’s restructuring actions, which were recorded in the business segments, approximately, as follows: Institutional Securities: $ 125 million, Wealth Management: $ 20 million and Investment Management: $ 10 million. (3 ) The se cond quarter of 2014 included net discrete tax benefit s of $ 609 million , principally associated with the remeasurement of reserves and related interest due to new information regarding the status of a multi-year tax authority examination (see Not e 20) . (4 ) The t hird quarter of 2014 included net discrete tax benefit s of $ 237 million , primarily associated with the repatriation of non-U.S. earnings at a cost lower than originally e stimated (see Note 20). The third quarter of 2014 also included a gain on sale of a retail property space of $ 141 million , which was included within Other revenues in the consolidated statement s of income and a gain o n sale of its ownership stake in TransMontaigne Inc. ( 5) The fourth quarter of 2014 includ ed: an increase of legal reserves of approximately $ 3.1 b illion (see Note 12 ) ; net discrete tax benefit s of $ 1,380 million , primarily due to the release of a deferred tax liability as a result of a legal entity restructuring, partially offset by appro ximately $ 900 million of tax provision from non-deductible expenses for litigation and regulatory matters (see Note 20); compensation expense deferral adjustments of $ 1.1 billion (see Note 18 ); and a charge of approximately $ 468 million related to the implementation of FVA (see Note 2), which was reflected as a reduction of the Institutio nal Securities business segment Trading revenues . ( 6 ) Summation of the quarters’ earnings per common share may not equal the annual amounts due to the aver aging effect of the number of shares and share equivalents throughout the year. (7) Beginning with t he dividend declared on April 20, 2015 , the Company increased the quarterly common stock dividend to $ 0.15 per share from $0.10 per share. |
Introduction and Basis of Pre54
Introduction and Basis of Presentation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Cash Flows | |||
Reduction in nonredeemable noncontrolling interests primarily related to deconsolidation of certain legal entities associated with a real estate fund | $ 191 | $ 1,606 | |
Significant non-cash activities, assets disposed of in connection with business dispositions | 222 | 1,300 | $ 3,600 |
Significant non-cash activities, liabilities disposed of in connection with business dispositions | $ 3,100 | ||
Real Estate Funds and Other Funds | |||
Consolidated Statements of Cash Flows | |||
Reduction in nonredeemable noncontrolling interests primarily related to deconsolidation of certain legal entities associated with a real estate fund | 244 | 1,600 | |
Global Oil Merchanting Business | |||
Disclosures by disposal groups, including discontinued operations | |||
Gain (loss) on sales of assets | $ (71) | ||
Canadian Terminal Business | |||
Disclosures by disposal groups, including discontinued operations | |||
Gains (loss) on business dispositions included in continuing operations | 45 | ||
TransMontaigne Inc. | |||
Disclosures by disposal groups, including discontinued operations | |||
Gains (loss) on business dispositions included in continuing operations | $ 112 |
Significant Accounting Polici55
Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue Recognition | ||
Performance-based fee revenue at risk | $ 363 | $ 634 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 39 years | |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 7 years | |
Computer and Communications Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Computer and Communications Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 9 years | |
Power generation assets | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 15 years | |
Power generation assets | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 29 years | |
Terminals, pipelines and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Terminals, pipelines and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 30 years | |
Software Costs | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Software Costs | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Building Structural Improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years | |
Other Improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 15 years |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Recurring | Long-term borrowings | |
Fair Value Measurements | |
Assets transferred from level 3 to level 2 | $ 1.3 |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | |
Assets at Fair Value | ||
Netting | $ (639,977) | $ (442,965) |
Total trading assets | 256,801 | 228,280 |
Total AFS securities, fair value | 69,216 | 66,759 |
Securities received as collateral | 21,316 | 11,225 |
Securities purchased under agreement to resell | 1,113 | 806 |
Intangible assets | 6 | 5 |
Commitment | 728 | 670 |
Investment measured at fair value using the NAV per share | 5,009 | 3,843 |
Liabilities at Fair Value | ||
Deposits | 125 | |
Short-term borrowings | 1,765 | 1,648 |
Netting | (614,094) | (427,876) |
Total trading liabilities | 107,381 | 109,139 |
Obligation to return securities received as collateral | 25,685 | 19,316 |
Securities sold under agreement to repurchase | 612 | 683 |
Other secured financings | 4,504 | 2,854 |
Long-term borrowings | 31,774 | 33,045 |
Recurring | ||
Assets at Fair Value | ||
U.S. government and agency securities | 36,004 | 36,341 |
Other sovereign government obligations | 23,078 | 20,963 |
Corporate and other debt | 38,947 | 29,847 |
Corporate equities | 114,119 | 107,108 |
Derivative and other contracts | 36,394 | 28,613 |
Netting | (639,977) | (442,965) |
Investments | 1,642 | 1,244 |
Physical commodities | 1,608 | 321 |
Total trading assets | 251,792 | 224,437 |
Total AFS securities, fair value | 69,216 | 66,759 |
Securities received as collateral | 21,316 | 11,225 |
Securities purchased under agreement to resell | 1,113 | 806 |
Intangible assets | 6 | 5 |
Total assets | 343,443 | 303,232 |
Investment measured at fair value using the NAV per share | 5,009 | 3,843 |
Liabilities at Fair Value | ||
Deposits | 125 | |
Short-term borrowings | 1,765 | 1,648 |
U.S. government and agency securities | 15,558 | 13,913 |
Other sovereign government obligations | 13,762 | 13,528 |
Corporate and other debt | 6,138 | 5,049 |
Corporate equities | 31,711 | 47,175 |
Derivative and other contracts | 40,212 | 29,474 |
Netting | (614,094) | (427,876) |
Total trading liabilities | 107,381 | 109,139 |
Obligation to return securities received as collateral | 25,685 | 19,316 |
Securities sold under agreement to repurchase | 612 | 683 |
Other secured financings | 4,504 | 2,854 |
Long-term borrowings | 31,774 | 33,045 |
Total liabilities | 171,721 | 166,810 |
Recurring | Corporate loans | ||
Assets at Fair Value | ||
Loan and lending commitment held at fair value | 7,093 | 7,286 |
Recurring | Residential real estate | ||
Assets at Fair Value | ||
Loan and lending commitment held at fair value | 1,682 | 1,885 |
Recurring | Wholesale real estate | ||
Assets at Fair Value | ||
Loan and lending commitment held at fair value | 3,187 | 1,447 |
Recurring | Net Asset Value | ||
Assets at Fair Value | ||
Investments | 5,009 | 3,843 |
Recurring | U.S. Treasury Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 16,961 | 17,658 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 14,199 | 12,932 |
Recurring | U.S. Agency Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 19,043 | 18,683 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 1,359 | 981 |
Recurring | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 2,049 | 1,670 |
Liabilities at Fair Value | ||
Corporate and other debt | 1 | |
Recurring | Residential Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 2,166 | 1,797 |
Recurring | Commercial Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 1,580 | 1,592 |
Liabilities at Fair Value | ||
Corporate and other debt | 2 | |
Recurring | Asset-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 659 | 519 |
Recurring | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 16,186 | 10,226 |
Liabilities at Fair Value | ||
Corporate and other debt | 6,021 | 5,035 |
Recurring | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 1,893 | 714 |
Recurring | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 11,962 | 10,618 |
Recurring | Lending Commitments | ||
Liabilities at Fair Value | ||
Corporate and other debt | 15 | 3 |
Recurring | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 2,452 | 2,711 |
Liabilities at Fair Value | ||
Corporate and other debt | 101 | 9 |
Recurring | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 498,173 | 326,044 |
Liabilities at Fair Value | ||
Derivative and other contracts | 472,578 | 307,409 |
Recurring | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 32,182 | 22,919 |
Liabilities at Fair Value | ||
Derivative and other contracts | 32,109 | 23,665 |
Recurring | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 73,101 | 64,955 |
Liabilities at Fair Value | ||
Derivative and other contracts | 72,352 | 65,350 |
Recurring | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 48,124 | 40,289 |
Liabilities at Fair Value | ||
Derivative and other contracts | 55,572 | 46,132 |
Recurring | Commodity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 24,415 | 17,152 |
Liabilities at Fair Value | ||
Derivative and other contracts | 21,523 | 14,751 |
Recurring | Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 376 | 219 |
Liabilities at Fair Value | ||
Derivative and other contracts | 172 | 43 |
Recurring | Principal Investments | ||
Assets at Fair Value | ||
Investments | 896 | 550 |
Recurring | Other Investments | ||
Assets at Fair Value | ||
Investments | 746 | 694 |
Recurring | Level 1 | ||
Assets at Fair Value | ||
U.S. government and agency securities | 17,811 | 18,455 |
Other sovereign government obligations | 15,149 | 13,559 |
Corporate and other debt | 0 | 0 |
Corporate equities | 112,490 | 106,296 |
Derivative and other contracts | 512 | 414 |
Netting | (4,910) | (3,840) |
Investments | 283 | 183 |
Physical commodities | 0 | 0 |
Total trading assets | 146,245 | 138,907 |
Total AFS securities, fair value | 37,200 | 34,351 |
Securities received as collateral | 21,265 | 11,221 |
Securities purchased under agreement to resell | 0 | 0 |
Intangible assets | 0 | 0 |
Total assets | 204,710 | 184,479 |
Liabilities at Fair Value | ||
Deposits | 0 | |
Short-term borrowings | 0 | 0 |
U.S. government and agency securities | 15,473 | 13,786 |
Other sovereign government obligations | 11,653 | 10,970 |
Corporate and other debt | 0 | 0 |
Corporate equities | 31,340 | 47,123 |
Derivative and other contracts | 946 | 230 |
Netting | (4,910) | (3,840) |
Total trading liabilities | 59,412 | 72,109 |
Obligation to return securities received as collateral | 25,629 | 19,312 |
Securities sold under agreement to repurchase | 0 | 0 |
Other secured financings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Total liabilities | 85,041 | 91,421 |
Recurring | Level 1 | U.S. Treasury Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 16,961 | 17,658 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 14,199 | 12,932 |
Recurring | Level 1 | U.S. Agency Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 850 | 797 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 1,274 | 854 |
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 | |
Recurring | Level 1 | Residential Mortgage-backed Securities | ||
Assets 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 and Loan Obligations | ||
Assets 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 | 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 | 663 | 406 |
Liabilities at Fair Value | ||
Derivative and other contracts | 602 | 466 |
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 | 83 | 55 |
Liabilities at Fair Value | ||
Derivative and other contracts | 21 | 22 |
Recurring | Level 1 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 571 | 653 |
Liabilities at Fair Value | ||
Derivative and other contracts | 416 | 570 |
Recurring | Level 1 | Commodity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 4,105 | 3,140 |
Liabilities at Fair Value | ||
Derivative and other contracts | 4,817 | 3,012 |
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 | Principal Investments | ||
Assets at Fair Value | ||
Investments | 58 | 20 |
Recurring | Level 1 | Other Investments | ||
Assets at Fair Value | ||
Investments | 225 | 163 |
Recurring | Level 2 | ||
Assets at Fair Value | ||
U.S. government and agency securities | 18,193 | 17,886 |
Other sovereign government obligations | 7,888 | 7,400 |
Corporate and other debt | 30,903 | 22,309 |
Corporate equities | 1,357 | 379 |
Derivative and other contracts | 98,866 | 79,434 |
Netting | (564,127) | (380,443) |
Investments | 201 | 354 |
Physical commodities | 1,608 | 321 |
Total trading assets | 159,016 | 128,083 |
Total AFS securities, fair value | 32,016 | 32,408 |
Securities received as collateral | 51 | 3 |
Securities purchased under agreement to resell | 1,113 | 806 |
Intangible assets | 0 | 0 |
Total assets | 192,196 | 161,300 |
Liabilities at Fair Value | ||
Deposits | 106 | |
Short-term borrowings | 1,765 | 1,647 |
U.S. government and agency securities | 85 | 127 |
Other sovereign government obligations | 2,109 | 2,558 |
Corporate and other debt | 6,017 | 5,045 |
Corporate equities | 326 | 35 |
Derivative and other contracts | 74,583 | 63,966 |
Netting | (564,127) | (380,443) |
Total trading liabilities | 83,120 | 71,731 |
Obligation to return securities received as collateral | 56 | 3 |
Securities sold under agreement to repurchase | 459 | 532 |
Other secured financings | 4,355 | 2,393 |
Long-term borrowings | 29,840 | 31,058 |
Total liabilities | 119,595 | 107,470 |
Recurring | Level 2 | 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 2 | U.S. Agency Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 18,193 | 17,886 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 85 | 127 |
Recurring | Level 2 | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 2,049 | 1,651 |
Liabilities at Fair Value | ||
Corporate and other debt | 1 | |
Recurring | Level 2 | Residential Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 1,991 | 1,456 |
Recurring | Level 2 | Commercial Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 1,484 | 1,520 |
Liabilities at Fair Value | ||
Corporate and other debt | 2 | |
Recurring | Level 2 | Asset-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 583 | 494 |
Recurring | Level 2 | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 15,800 | 9,959 |
Liabilities at Fair Value | ||
Corporate and other debt | 5,943 | 5,035 |
Recurring | Level 2 | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 741 | 284 |
Recurring | Level 2 | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 6,088 | 4,682 |
Recurring | Level 2 | Lending Commitments | ||
Liabilities at Fair Value | ||
Corporate and other debt | 10 | 3 |
Recurring | Level 2 | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 2,167 | 2,263 |
Liabilities at Fair Value | ||
Corporate and other debt | 63 | 5 |
Recurring | Level 2 | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 495,026 | 323,586 |
Liabilities at Fair Value | ||
Derivative and other contracts | 469,319 | 305,151 |
Recurring | Level 2 | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 30,813 | 22,258 |
Liabilities at Fair Value | ||
Derivative and other contracts | 29,997 | 22,160 |
Recurring | Level 2 | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 72,769 | 64,608 |
Liabilities at Fair Value | ||
Derivative and other contracts | 72,233 | 65,177 |
Recurring | Level 2 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 45,967 | 38,552 |
Increase (Decrease) In Derivative Assets | (57) | |
Liabilities at Fair Value | ||
Derivative and other contracts | 51,405 | 42,447 |
Increase (Decrease) In Derivative Liabilities | (842) | |
Recurring | Level 2 | Commodity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 18,042 | 10,654 |
Liabilities at Fair Value | ||
Derivative and other contracts | 15,584 | 9,431 |
Recurring | Level 2 | Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 376 | 219 |
Liabilities at Fair Value | ||
Derivative and other contracts | 172 | 43 |
Recurring | Level 2 | Principal Investments | ||
Assets at Fair Value | ||
Investments | 3 | 44 |
Recurring | Level 2 | Other Investments | ||
Assets at Fair Value | ||
Investments | 198 | 310 |
Recurring | Level 3 | ||
Assets at Fair Value | ||
U.S. government and agency securities | 0 | 0 |
Other sovereign government obligations | 41 | 4 |
Corporate and other debt | 8,044 | 7,538 |
Corporate equities | 272 | 433 |
Derivative and other contracts | 3,736 | 4,327 |
Netting | (4,220) | (3,120) |
Investments | 1,158 | 707 |
Physical commodities | 0 | 0 |
Total trading assets | 13,251 | 13,009 |
Total AFS securities, fair value | 0 | 0 |
Securities received as collateral | 0 | 1 |
Securities purchased under agreement to resell | 0 | 0 |
Intangible assets | 6 | 5 |
Total assets | 13,257 | 13,015 |
Liabilities at Fair Value | ||
Deposits | 19 | |
Short-term borrowings | 0 | 1 |
U.S. government and agency securities | 0 | 0 |
Other sovereign government obligations | 0 | 0 |
Corporate and other debt | 121 | 4 |
Corporate equities | 45 | 17 |
Derivative and other contracts | 5,520 | 5,751 |
Netting | (4,220) | (3,120) |
Total trading liabilities | 5,686 | 5,772 |
Obligation to return securities received as collateral | 0 | 1 |
Securities sold under agreement to repurchase | 153 | 151 |
Other secured financings | 149 | 461 |
Long-term borrowings | 1,934 | 1,987 |
Total liabilities | 7,922 | 8,392 |
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 | 19 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Level 3 | Residential Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 175 | 341 |
Recurring | Level 3 | Commercial Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 96 | 72 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Level 3 | Asset-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 76 | 25 |
Recurring | Level 3 | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 386 | 267 |
Liabilities at Fair Value | ||
Corporate and other debt | 78 | 0 |
Recurring | Level 3 | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 1,152 | 430 |
Recurring | Level 3 | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 5,874 | 5,936 |
Recurring | Level 3 | Lending Commitments | ||
Liabilities at Fair Value | ||
Corporate and other debt | 5 | 0 |
Recurring | Level 3 | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 285 | 448 |
Liabilities at Fair Value | ||
Corporate and other debt | 38 | 4 |
Recurring | Level 3 | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 2,484 | 2,052 |
Liabilities at Fair Value | ||
Derivative and other contracts | 2,657 | 1,792 |
Recurring | Level 3 | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,369 | 661 |
Liabilities at Fair Value | ||
Derivative and other contracts | 2,112 | 1,505 |
Recurring | Level 3 | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 249 | 292 |
Liabilities at Fair Value | ||
Derivative and other contracts | 98 | 151 |
Recurring | Level 3 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,586 | 1,084 |
Increase (Decrease) In Derivative Assets | 57 | |
Liabilities at Fair Value | ||
Derivative and other contracts | 3,751 | 3,115 |
Increase (Decrease) In Derivative Liabilities | 842 | |
Recurring | Level 3 | Commodity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 2,268 | 3,358 |
Liabilities at Fair Value | ||
Derivative and other contracts | 1,122 | 2,308 |
Recurring | Level 3 | Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 0 | 0 |
Liabilities at Fair Value | ||
Derivative and other contracts | 0 | 0 |
Recurring | Level 3 | Principal Investments | ||
Assets at Fair Value | ||
Investments | 835 | 486 |
Recurring | Level 3 | Other Investments | ||
Assets at Fair Value | ||
Investments | 323 | 221 |
Recurring | Counterparty and Cash Collateral Netting | ||
Assets at Fair Value | ||
Derivative and other contracts | (66,720) | (55,562) |
Netting | (66,720) | (55,562) |
Total trading assets | (66,720) | (55,562) |
Total assets | (66,720) | (55,562) |
Liabilities at Fair Value | ||
Derivative and other contracts | (40,837) | (40,473) |
Netting | (40,837) | (40,473) |
Total trading liabilities | (40,837) | (40,473) |
Total liabilities | $ (40,837) | $ (40,473) |
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 ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Contracts | |||
Assets | |||
Net liability increase (decrease) | $ 785 | ||
Securities Received as Collateral | |||
Assets | |||
Beginning balance | $ 0 | ||
Realized and Unrealized Gains (Losses) | 0 | ||
Purchases | 1 | ||
Sales | 0 | ||
Issuances | 0 | ||
Settlements | 0 | ||
Net Transfers | 0 | ||
Ending balance | 1 | 0 | |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | ||
Intangible Assets | |||
Assets | |||
Beginning balance | 6 | 8 | $ 7 |
Realized and Unrealized Gains (Losses) | 0 | 0 | 9 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | (1) | (2) | (8) |
Net Transfers | 0 | 0 | 0 |
Ending balance | 5 | 6 | 8 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | (1) | 3 |
Deposits | |||
Liabilities | |||
Beginning balance | 0 | ||
Realized and Unrealized Gains (Losses) | (1) | ||
Purchases | 0 | ||
Sales | 0 | ||
Issuances | 18 | ||
Settlements | 0 | ||
Net Transfers | 0 | ||
Ending balance | 19 | 0 | |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | (1) | ||
Short-term borrowings | |||
Liabilities | |||
Beginning balance | 0 | 1 | 19 |
Realized and Unrealized Gains (Losses) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 1 | 0 | 0 |
Settlements | 0 | (1) | (1) |
Net Transfers | 0 | 0 | (17) |
Ending balance | 1 | 0 | 1 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 0 | 0 | 0 |
Obligation to Return Securities Received as Collateral | |||
Liabilities | |||
Beginning balance | 0 | ||
Realized and Unrealized Gains (Losses) | 0 | ||
Purchases | 0 | ||
Sales | 1 | ||
Issuances | 0 | ||
Settlements | 0 | ||
Net Transfers | 0 | ||
Ending balance | 1 | 0 | |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 0 | ||
Securities Sold under agreements to repurchase | |||
Liabilities | |||
Beginning balance | 153 | 154 | 151 |
Realized and Unrealized Gains (Losses) | 2 | 1 | (3) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net Transfers | 0 | 0 | 0 |
Ending balance | 151 | 153 | 154 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 2 | 1 | (3) |
Other Secured Financings | |||
Liabilities | |||
Beginning balance | 149 | 278 | 406 |
Realized and Unrealized Gains (Losses) | 192 | (9) | 11 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 327 | 21 | 19 |
Settlements | (232) | (201) | (136) |
Net Transfers | 409 | 42 | 0 |
Ending balance | 461 | 149 | 278 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 181 | (6) | 4 |
Long-term borrowings | |||
Liabilities | |||
Beginning balance | 1,934 | 1,887 | 2,789 |
Realized and Unrealized Gains (Losses) | 61 | 109 | (162) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 881 | 791 | 877 |
Settlements | (364) | (391) | (606) |
Net Transfers | (403) | (244) | (1,335) |
Ending balance | 1,987 | 1,934 | 1,887 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 52 | 102 | (138) |
Trading Assets | U.S. Agency Securities | |||
Assets | |||
Beginning balance | 0 | 0 | |
Realized and Unrealized Gains (Losses) | 0 | ||
Purchases | 0 | ||
Sales | 0 | ||
Issuances | 0 | ||
Settlements | 0 | ||
Net Transfers | 0 | ||
Ending balance | 0 | ||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | ||
Trading Assets | Other Sovereign Government Obligations | |||
Assets | |||
Beginning balance | 41 | 27 | 6 |
Realized and Unrealized Gains (Losses) | (1) | 1 | (18) |
Purchases | 2 | 48 | 41 |
Sales | (30) | (34) | (7) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net Transfers | (8) | (1) | 5 |
Ending balance | 4 | 41 | 27 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | 0 | (18) |
Trading Assets | Corporate and Other Debt | |||
Assets | |||
Beginning balance | 8,044 | 7,404 | 7,736 |
Realized and Unrealized Gains (Losses) | 3 | 239 | 250 |
Purchases | 4,275 | 4,995 | 4,947 |
Sales | (1,527) | (1,932) | (2,065) |
Issuances | 0 | 0 | 0 |
Settlements | (2,956) | (2,697) | (3,748) |
Net Transfers | (301) | 35 | 284 |
Ending balance | 7,538 | 8,044 | 7,404 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (166) | (20) | (127) |
Trading Assets | Corporate and Other Debt | State and Municipal Securities | |||
Assets | |||
Realized and Unrealized Gains (Losses) | 2 | ||
Purchases | 3 | ||
Sales | 0 | ||
Issuances | 0 | ||
Settlements | 0 | ||
Net Transfers | 14 | ||
Ending balance | 19 | ||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 2 | ||
Trading Assets | Corporate and Other Debt | Residential Mortgage-backed Securities | |||
Assets | |||
Beginning balance | 175 | 47 | 45 |
Realized and Unrealized Gains (Losses) | 24 | 9 | 25 |
Purchases | 176 | 105 | 54 |
Sales | (83) | (14) | (51) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net Transfers | 49 | 28 | (26) |
Ending balance | 341 | 175 | 47 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 12 | 4 | (6) |
Trading Assets | Corporate and Other Debt | Commercial Mortgage-backed Securities | |||
Assets | |||
Beginning balance | 96 | 108 | 232 |
Realized and Unrealized Gains (Losses) | (28) | 65 | 13 |
Purchases | 27 | 16 | 57 |
Sales | (23) | (102) | (187) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | (7) |
Net Transfers | 0 | 9 | 0 |
Ending balance | 72 | 96 | 108 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (32) | 45 | 4 |
Trading Assets | Corporate and Other Debt | Asset-backed Securities | |||
Assets | |||
Beginning balance | 76 | 103 | 109 |
Realized and Unrealized Gains (Losses) | (9) | 3 | 0 |
Purchases | 23 | 66 | 6 |
Sales | (30) | (96) | (12) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net Transfers | (35) | 0 | 0 |
Ending balance | 25 | 76 | 103 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | 9 | 0 |
Trading Assets | Corporate and Other Debt | Corporate Bonds | |||
Assets | |||
Beginning balance | 386 | 522 | 660 |
Realized and Unrealized Gains (Losses) | (44) | 86 | (20) |
Purchases | 374 | 106 | 324 |
Sales | (381) | (306) | (371) |
Issuances | 0 | 0 | 0 |
Settlements | (53) | 0 | (19) |
Net Transfers | (15) | (22) | (52) |
Ending balance | 267 | 386 | 522 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (44) | 66 | (55) |
Trading Assets | Corporate and Other Debt | Collateralized Debt and Loan Obligations | |||
Assets | |||
Beginning balance | 1,152 | 1,468 | 1,951 |
Realized and Unrealized Gains (Losses) | 123 | 142 | 363 |
Purchases | 325 | 644 | 742 |
Sales | (798) | (964) | (960) |
Issuances | 0 | 0 | 0 |
Settlements | (344) | (143) | (626) |
Net Transfers | (28) | 5 | (2) |
Ending balance | 430 | 1,152 | 1,468 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (19) | 27 | 131 |
Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | |||
Assets | |||
Beginning balance | 5,874 | 5,129 | 4,694 |
Realized and Unrealized Gains (Losses) | (42) | (87) | (130) |
Purchases | 3,216 | 3,784 | 3,744 |
Sales | (207) | (415) | (448) |
Issuances | 0 | 0 | 0 |
Settlements | (2,478) | (2,552) | (3,096) |
Net Transfers | (427) | 15 | 365 |
Ending balance | 5,936 | 5,874 | 5,129 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (76) | (191) | (199) |
Trading Assets | Corporate and Other Debt | Other Debt | |||
Assets | |||
Beginning balance | 285 | 27 | 45 |
Realized and Unrealized Gains (Losses) | (23) | 21 | (1) |
Purchases | 131 | 274 | 20 |
Sales | (5) | (35) | (36) |
Issuances | 0 | 0 | 0 |
Settlements | (81) | (2) | 0 |
Net Transfers | 141 | 0 | (1) |
Ending balance | 448 | 285 | 27 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (9) | 20 | (2) |
Trading Assets | Corporate Equities | |||
Assets | |||
Beginning balance | 272 | 190 | 288 |
Realized and Unrealized Gains (Losses) | (1) | 20 | (63) |
Purchases | 373 | 146 | 113 |
Sales | (333) | (102) | (127) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net Transfers | 122 | 18 | (21) |
Ending balance | 433 | 272 | 190 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 11 | (3) | (72) |
Trading Assets | Net Derivative and Other Contracts | |||
Assets | |||
Beginning balance | (1,784) | 79 | 939 |
Realized and Unrealized Gains (Losses) | 429 | (1,048) | (859) |
Purchases | 197 | 719 | 483 |
Sales | (1) | (2) | (74) |
Issuances | (709) | (807) | (1,091) |
Settlements | 291 | (119) | 90 |
Net Transfers | 153 | (606) | 591 |
Ending balance | (1,424) | (1,784) | 79 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 357 | (1,368) | (1,335) |
Gains (losses) in fair value adjustment | 468 | ||
Trading Assets | Net Derivative and Other Contracts | Interest Rate Contracts | |||
Assets | |||
Beginning balance | (173) | 113 | (82) |
Realized and Unrealized Gains (Losses) | (51) | (258) | 28 |
Purchases | 58 | 18 | 6 |
Sales | 0 | 0 | 0 |
Issuances | (54) | (14) | (34) |
Settlements | 207 | (43) | 135 |
Net Transfers | 273 | 11 | 60 |
Ending balance | 260 | (173) | 113 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 20 | (349) | 36 |
Trading Assets | Net Derivative and Other Contracts | Credit Contracts | |||
Assets | |||
Beginning balance | (743) | (147) | 1,822 |
Realized and Unrealized Gains (Losses) | (172) | (408) | (1,674) |
Purchases | 19 | 68 | 266 |
Sales | 0 | 0 | 0 |
Issuances | (121) | (179) | (703) |
Settlements | 196 | (15) | (295) |
Net Transfers | (23) | (62) | 437 |
Ending balance | (844) | (743) | (147) |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (179) | (474) | (1,723) |
Trading Assets | Net Derivative and Other Contracts | Foreign Exchange Contracts | |||
Assets | |||
Beginning balance | 151 | 68 | (359) |
Realized and Unrealized Gains (Losses) | 53 | (13) | 130 |
Purchases | 4 | 7 | 0 |
Sales | 0 | 0 | 0 |
Issuances | (2) | 0 | 0 |
Settlements | (18) | 108 | 281 |
Net Transfers | (47) | (19) | 16 |
Ending balance | 141 | 151 | 68 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 52 | (17) | 124 |
Trading Assets | Net Derivative and Other Contracts | Equity Contracts | |||
Assets | |||
Beginning balance | (2,165) | (831) | (1,144) |
Realized and Unrealized Gains (Losses) | 166 | (527) | 463 |
Purchases | 81 | 339 | 170 |
Sales | (1) | (2) | (74) |
Issuances | (310) | (562) | (318) |
Settlements | 22 | (46) | (11) |
Net Transfers | 176 | (536) | 83 |
Ending balance | (2,031) | (2,165) | (831) |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 62 | (600) | 61 |
Trading Assets | Net Derivative and Other Contracts | Commodity Contracts | |||
Assets | |||
Beginning balance | 1,146 | 880 | 709 |
Realized and Unrealized Gains (Losses) | 433 | 158 | 200 |
Purchases | 35 | 287 | 41 |
Sales | 0 | 0 | 0 |
Issuances | (222) | (52) | (36) |
Settlements | (116) | (127) | (29) |
Net Transfers | (226) | 0 | (5) |
Ending balance | 1,050 | 1,146 | 880 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 402 | 72 | 174 |
Trading Assets | Net Derivative and Other Contracts | Other Contracts | |||
Assets | |||
Beginning balance | 0 | (4) | (7) |
Realized and Unrealized Gains (Losses) | 0 | (6) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 4 | 9 | |
Net Transfers | 0 | 0 | |
Ending balance | 0 | (4) | |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | (7) | |
Trading Assets | Investments | Private Equity Funds | |||
Assets | |||
Beginning balance | 0 | 0 | |
Ending balance | 0 | ||
Trading Assets | Investments | Real Estate Funds | |||
Assets | |||
Beginning balance | 0 | 0 | |
Ending balance | 0 | ||
Trading Assets | Investments | Hedge Funds | |||
Assets | |||
Beginning balance | 0 | 0 | |
Ending balance | 0 | ||
Trading Assets | Investments | Principal Investments | |||
Assets | |||
Beginning balance | 835 | 2,160 | 2,833 |
Realized and Unrealized Gains (Losses) | 11 | 53 | 110 |
Purchases | 32 | 36 | 111 |
Sales | (133) | (181) | (445) |
Issuances | 0 | 0 | 0 |
Settlements | (188) | (1,258) | 0 |
Net Transfers | (71) | 25 | (449) |
Ending balance | 486 | 835 | 2,160 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 6 | 49 | 3 |
Trading Assets | Investments | Other Investments | |||
Assets | |||
Beginning balance | 323 | 538 | 486 |
Realized and Unrealized Gains (Losses) | (12) | 17 | 76 |
Purchases | 1 | 17 | 13 |
Sales | (6) | (29) | (36) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net Transfers | (85) | (220) | (1) |
Ending balance | 221 | 323 | 538 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (7) | 24 | 77 |
Trading Liabilities | Other Sovereign Government Obligations | |||
Liabilities | |||
Beginning balance | 0 | 0 | 0 |
Realized and Unrealized Gains (Losses) | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Net Transfers | 0 | 0 | |
Ending balance | 0 | 0 | |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 0 | 0 | |
Trading Liabilities | Corporate and Other Debt | |||
Liabilities | |||
Beginning balance | 121 | 72 | 276 |
Realized and Unrealized Gains (Losses) | 5 | 5 | 78 |
Purchases | (20) | (54) | (64) |
Sales | 13 | 117 | 48 |
Issuances | 0 | 0 | 0 |
Settlements | (104) | 0 | (6) |
Net Transfers | (1) | (9) | (104) |
Ending balance | 4 | 121 | 72 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 5 | (3) | 78 |
Trading Liabilities | Corporate and Other Debt | Residential Mortgage-backed Securities | |||
Liabilities | |||
Beginning balance | 0 | 4 | |
Realized and Unrealized Gains (Losses) | 4 | ||
Purchases | 0 | ||
Sales | 0 | ||
Issuances | 0 | ||
Settlements | 0 | ||
Net Transfers | 0 | ||
Ending balance | 0 | ||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 4 | ||
Trading Liabilities | Corporate and Other Debt | Corporate Bonds | |||
Liabilities | |||
Beginning balance | 78 | 22 | 177 |
Realized and Unrealized Gains (Losses) | 0 | 1 | 28 |
Purchases | (19) | (46) | (64) |
Sales | 6 | 117 | 43 |
Issuances | 0 | 0 | 0 |
Settlements | (65) | 0 | 0 |
Net Transfers | 0 | (14) | (106) |
Ending balance | 0 | 78 | 22 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 0 | 2 | 28 |
Trading Liabilities | Corporate and Other Debt | Lending Commitments | |||
Liabilities | |||
Beginning balance | 5 | 2 | 46 |
Realized and Unrealized Gains (Losses) | 5 | (3) | 44 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net Transfers | 0 | 0 | 0 |
Ending balance | 0 | 5 | 2 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 5 | (3) | 44 |
Trading Liabilities | Corporate and Other Debt | Other Debt | |||
Liabilities | |||
Beginning balance | 38 | 48 | 49 |
Realized and Unrealized Gains (Losses) | 0 | 7 | 2 |
Purchases | (1) | (8) | 0 |
Sales | 7 | 0 | 5 |
Issuances | 0 | 0 | 0 |
Settlements | (39) | 0 | (6) |
Net Transfers | (1) | 5 | 2 |
Ending balance | 4 | 38 | 48 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 0 | (2) | 2 |
Trading Liabilities | Corporate Equities | |||
Liabilities | |||
Beginning balance | 45 | 8 | 5 |
Realized and Unrealized Gains (Losses) | 79 | 0 | 1 |
Purchases | (86) | (3) | (26) |
Sales | 32 | 39 | 29 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net Transfers | 105 | 1 | 1 |
Ending balance | 17 | 45 | 8 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | $ 79 | $ 0 | $ 3 |
Fair Value Disclosures (Quantit
Fair Value Disclosures (Quantitative Information about and Sensitivity of Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements) (Details) - Recurring - Level 3 $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / MWh | Dec. 31, 2014USD ($)$ / MWh | |
Residential Mortgage-backed Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 341 | $ 175 |
Residential Mortgage-backed Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Bond Price | 0.00% | 3.00% |
Residential Mortgage-backed Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Bond Price | 75.00% | 90.00% |
Residential Mortgage-backed Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 32.00% | 15.00% |
Commercial Mortgage-backed Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 72 | $ 96 |
Commercial Mortgage-backed Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Bond Price | 0.00% | 0.00% |
Commercial Mortgage-backed Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Bond Price | 9.00% | 7.00% |
Commercial Mortgage-backed Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 2.00% | 1.00% |
Asset-backed Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 76 | |
Asset-backed Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Bond Price | 0.00% | |
Asset-backed Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Bond Price | 62.00% | |
Asset-backed Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 23.00% | |
Corporate Bonds | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 267 | $ 386 |
Liabilities | $ 78 | |
Corporate Bonds | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Bond Price | 3.00% | 1.00% |
EBITDA Multiple | 0.07 | |
Corporate Bonds | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Bond Price | 119.00% | 160.00% |
EBITDA Multiple | 0.09 | |
Corporate Bonds | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 90.00% | 90.00% |
EBITDA Multiple | 0.08 | |
Corporate Bonds | Option Model | ||
Fair Value Inputs | ||
At the Money Volatility | 10.00% | |
Volatility Skew | (1.00%) | |
Corporate Bonds | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the Money Volatility | 10.00% | |
Volatility Skew | (1.00%) | |
Corporate Bonds | Structured bond model | ||
Fair Value Inputs | ||
Discount Rate | 15.00% | |
Corporate Bonds | Structured bond model | Weighted Average | ||
Fair Value Inputs | ||
Discount Rate | 15.00% | |
Collateralized Debt and Loan Obligations | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 430 | $ 1,152 |
Collateralized Debt and Loan Obligations | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Bond Price | 47.00% | 20.00% |
Collateralized Debt and Loan Obligations | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Bond Price | 103.00% | 100.00% |
Collateralized Debt and Loan Obligations | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 67.00% | 66.00% |
Collateralized Debt and Loan Obligations | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit Correlation | 39.00% | 47.00% |
Collateralized Debt and Loan Obligations | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit Correlation | 60.00% | 65.00% |
Collateralized Debt and Loan Obligations | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit Correlation | 49.00% | 56.00% |
Loans and Lending Commitments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 5,936 | $ 5,874 |
Loans and Lending Commitments | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Loan Price | 35.00% | 15.00% |
Loans and Lending Commitments | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Loan Price | 100.00% | 105.00% |
Loans and Lending Commitments | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Loan Price | 88.00% | 89.00% |
Loans and Lending Commitments | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 6.00% | |
Capitalization Rate | 4.00% | |
Loans and Lending Commitments | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 8.00% | |
Capitalization Rate | 10.00% | |
Loans and Lending Commitments | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 7.00% | |
Capitalization Rate | 4.00% | |
Loans and Lending Commitments | Corporate Loan Model | Minimum | ||
Fair Value Inputs | ||
Credit Spread | 2.50% | 0.36% |
Loans and Lending Commitments | Corporate Loan Model | Maximum | ||
Fair Value Inputs | ||
Credit Spread | 8.66% | 7.53% |
Loans and Lending Commitments | Corporate Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Credit Spread | 5.31% | 3.73% |
Loans and Lending Commitments | Margin Loan Model | Minimum | ||
Fair Value Inputs | ||
Discount Rate | 1.00% | 2.00% |
Credit Spread | 0.62% | 1.50% |
Volatility Skew | 14.00% | 3.00% |
Loans and Lending Commitments | Margin Loan Model | Maximum | ||
Fair Value Inputs | ||
Discount Rate | 4.00% | 3.00% |
Credit Spread | 4.99% | 4.51% |
Volatility Skew | 70.00% | 37.00% |
Loans and Lending Commitments | Margin Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Discount Rate | 2.00% | 3.00% |
Credit Spread | 1.45% | 2.16% |
Volatility Skew | 33.00% | 21.00% |
Loans and Lending Commitments | Option Model | ||
Fair Value Inputs | ||
Volatility Skew | (1.00%) | (1.00%) |
Loans and Lending Commitments | Option Model | Weighted Average | ||
Fair Value Inputs | ||
Volatility Skew | (1.00%) | (1.00%) |
Other Debt | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 448 | $ 285 |
Other Debt | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable Bond Price | 8.00% | 15.00% |
Other Debt | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Loan Price | 4.00% | 0.00% |
Other Debt | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Loan Price | 84.00% | 75.00% |
Other Debt | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 8.00% | 15.00% |
Comparable Loan Price | 59.00% | 39.00% |
Other Debt | Margin Loan Model | ||
Fair Value Inputs | ||
Discount Rate | 1.00% | |
Other Debt | Margin Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Discount Rate | 1.00% | |
Other Debt | Option Model | Minimum | ||
Fair Value Inputs | ||
At the Money Volatility | 16.00% | 15.00% |
Other Debt | Option Model | Maximum | ||
Fair Value Inputs | ||
At the Money Volatility | 53.00% | 54.00% |
Other Debt | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the Money Volatility | 53.00% | 15.00% |
Corporate Equities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 433 | $ 272 |
Corporate Equities | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable Equity Price | 100.00% | 100.00% |
Corporate Equities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Price | 50.00% | 83.00% |
Corporate Equities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Price | 80.00% | 96.00% |
Corporate Equities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Equity Price | 100.00% | 100.00% |
Comparable Price | 72.00% | 85.00% |
Corporate Equities | Net Asset Value | Minimum | ||
Fair Value Inputs | ||
Discount to Net Asset Value | 0.00% | |
Corporate Equities | Net Asset Value | Maximum | ||
Fair Value Inputs | ||
Discount to Net Asset Value | 71.00% | |
Corporate Equities | Net Asset Value | Weighted Average | ||
Fair Value Inputs | ||
Discount to Net Asset Value | 36.00% | |
Corporate Equities | Market Approach | ||
Fair Value Inputs | ||
EBITDA Multiple | 9 | |
Price/Book ratio | 0 | 0 |
Corporate Equities | Market Approach | Minimum | ||
Fair Value Inputs | ||
EBITDA Multiple | 6 | |
Corporate Equities | Market Approach | Maximum | ||
Fair Value Inputs | ||
EBITDA Multiple | 9 | |
Corporate Equities | Market Approach | Weighted Average | ||
Fair Value Inputs | ||
EBITDA Multiple | 9 | 8 |
Price/Book ratio | 0 | 0 |
Interest Rate Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 260 | $ (173) |
Interest Rate Contracts | Option Model | ||
Fair Value Inputs | ||
Inflation Volatility | 58.00% | |
Interest Rate Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Interest Rate Volatility Concentration Liquidity Multiple | 0 | 0 |
Interest Rate Volatility Skew | 29.00% | 38.00% |
Interest Rate Quanto Correlation | (8.00%) | (9.00%) |
Interest Rate - Foreign Exchange Correlation | 25.00% | 28.00% |
Interest Rate - Inflation Correlation | (41.00%) | (44.00%) |
Inflation Volatility | 69.00% | |
Interest Rate Curve Correlation | 24.00% | 44.00% |
Interest Rate Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Interest Rate Volatility Concentration Liquidity Multiple | 3 | 3 |
Interest Rate Volatility Skew | 82.00% | 104.00% |
Interest Rate Quanto Correlation | 36.00% | 35.00% |
Interest Rate - Foreign Exchange Correlation | 62.00% | 62.00% |
Interest Rate - Inflation Correlation | (39.00%) | (40.00%) |
Inflation Volatility | 71.00% | |
Interest Rate Curve Correlation | 95.00% | 87.00% |
Interest Rate Contracts | Option Model | Weighted Average | ||
Fair Value Inputs | ||
Interest Rate Volatility Concentration Liquidity Multiple | 2 | 2 |
Interest Rate Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 43.00% | 86.00% |
Interest Rate Quanto Correlation | 5.00% | 6.00% |
Interest Rate - Foreign Exchange Correlation | 43.00% | 44.00% |
Interest Rate - Inflation Correlation | (41.00%) | (42.00%) |
Inflation Volatility | 58.00% | 70.00% |
Interest Rate Curve Correlation | 60.00% | 73.00% |
Interest Rate Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 40.00% | 60.00% |
Interest Rate Quanto Correlation | (6.00%) | (6.00%) |
Interest Rate - Foreign Exchange Correlation | 43.00% | 42.00% |
Interest Rate - Inflation Correlation | (41.00%) | (43.00%) |
Inflation Volatility | 58.00% | 71.00% |
Interest Rate Curve Correlation | 69.00% | 80.00% |
Credit Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ (844) | $ (743) |
Credit Contracts | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Bond Price (Lower Higher) | 0.00% | 0.00% |
Cash Synthetic Basis | 5.00% | 5.00% |
Credit Contracts | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Bond Price (Lower Higher) | 75.00% | 55.00% |
Cash Synthetic Basis | 12.00% | 13.00% |
Credit Contracts | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price (Lower Higher) | 24.00% | 18.00% |
Cash Synthetic Basis | 9.00% | 9.00% |
Credit Contracts | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit Correlation | 39.00% | 42.00% |
Credit Contracts | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit Correlation | 97.00% | 95.00% |
Credit Contracts | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit Correlation | 57.00% | 63.00% |
Foreign Exchange Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 141 | $ 151 |
Foreign Exchange Contracts | Option Model | ||
Fair Value Inputs | ||
Interest rate curve | 0.00% | |
Foreign Exchange Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 29.00% | |
Interest rate curve | 0.00% | |
Interest Rate Quanto Correlation | (9.00%) | |
Interest Rate - Credit Spread Correlation | (54.00%) | |
Interest Rate - Foreign Exchange Correlation | 25.00% | 28.00% |
Interest Rate Curve Correlation | 44.00% | |
Foreign Exchange Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 82.00% | |
Interest rate curve | 2.00% | |
Interest Rate Quanto Correlation | 35.00% | |
Interest Rate - Credit Spread Correlation | (2.00%) | |
Interest Rate - Foreign Exchange Correlation | 62.00% | 62.00% |
Interest Rate Curve Correlation | 87.00% | |
Foreign Exchange Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 43.00% | |
Interest rate curve | 0.00% | 1.00% |
Interest Rate Quanto Correlation | 6.00% | |
Interest Rate - Credit Spread Correlation | (17.00%) | |
Interest Rate - Foreign Exchange Correlation | 43.00% | 44.00% |
Interest Rate Curve Correlation | 73.00% | |
Foreign Exchange Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 40.00% | |
Interest rate curve | 0.00% | 1.00% |
Interest Rate Quanto Correlation | (6.00%) | |
Interest Rate - Credit Spread Correlation | (11.00%) | |
Interest Rate - Foreign Exchange Correlation | 43.00% | 42.00% |
Interest Rate Curve Correlation | 80.00% | |
Equity Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ (2,031) | $ (2,165) |
Increase (Decrease) In Derivative Liabilities | $ 785 | |
Equity Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
At the Money Volatility | 16.00% | 14.00% |
Volatility Skew | (3.00%) | (2.00%) |
Equity - Equity Correlation | 40.00% | 40.00% |
Equity - Foreign Exchange Correlation | (60.00%) | (50.00%) |
Equity - Interest Rate Correlation | (29.00%) | (18.00%) |
Equity Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
At the Money Volatility | 65.00% | 51.00% |
Volatility Skew | 0.00% | 0.00% |
Equity - Equity Correlation | 99.00% | 99.00% |
Equity - Foreign Exchange Correlation | (11.00%) | 10.00% |
Equity - Interest Rate Correlation | 50.00% | 81.00% |
Equity Contracts | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the Money Volatility | 32.00% | 29.00% |
Volatility Skew | (1.00%) | (1.00%) |
Equity - Equity Correlation | 71.00% | 72.00% |
Equity - Foreign Exchange Correlation | (39.00%) | (16.00%) |
Equity Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Equity - Interest Rate Correlation | 16.00% | 26.00% |
Equity Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Equity - Interest Rate Correlation | 8.00% | 11.00% |
Commodity Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 1,050 | $ 1,146 |
Commodity Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Forward Power Price (per megawatt hour) | $ / MWh | 3 | 5 |
Commodity Volatility | 10.00% | 11.00% |
Cross Commodity Correlation | 43.00% | 33.00% |
Commodity Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Forward Power Price (per megawatt hour) | $ / MWh | 91 | 106 |
Commodity Volatility | 92.00% | 90.00% |
Cross Commodity Correlation | 99.00% | 100.00% |
Commodity Contracts | Option Model | Weighted Average | ||
Fair Value Inputs | ||
Forward Power Price (per megawatt hour) | $ / MWh | 32 | 38 |
Commodity Volatility | 18.00% | 19.00% |
Cross Commodity Correlation | 93.00% | 93.00% |
Principal Investments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 486 | $ 835 |
Principal Investments | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Equity Price | 43.00% | 64.00% |
Principal Investments | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Equity Price | 100.00% | 100.00% |
Principal Investments | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Equity Price | 81.00% | 95.00% |
Principal Investments | Discounted Cash Flow | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 16.00% | 11.00% |
Exit Multiple | 10 | |
Equity Discount Rate | 25.00% | |
Principal Investments | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Exit Multiple | 8 | |
Capitalization Rate | 5.00% | |
Equity Discount Rate | 20.00% | |
Principal Investments | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Exit Multiple | 14 | |
Capitalization Rate | 9.00% | |
Equity Discount Rate | 35.00% | |
Principal Investments | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 16.00% | 11.00% |
Exit Multiple | 9 | 10 |
Capitalization Rate | 6.00% | |
Equity Discount Rate | 26.00% | 25.00% |
Principal Investments | Market Approach | ||
Fair Value Inputs | ||
Price / Earnings ratio | 23 | |
Principal Investments | Market Approach | Minimum | ||
Fair Value Inputs | ||
EBITDA Multiple | 8 | 4 |
Forward capacity price | $ / MWh | 5 | 5 |
Principal Investments | Market Approach | Maximum | ||
Fair Value Inputs | ||
EBITDA Multiple | 20 | 14 |
Forward capacity price | $ / MWh | 9 | 7 |
Principal Investments | Market Approach | Weighted Average | ||
Fair Value Inputs | ||
EBITDA Multiple | 11 | 10 |
Price / Earnings ratio | 23 | |
Forward capacity price | $ / MWh | 7 | 7 |
Other Investments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 221 | $ 323 |
Other Investments | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable Equity Price | 100.00% | 100.00% |
Other Investments | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Equity Price | 100.00% | 100.00% |
Other Investments | Discounted Cash Flow | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 10.00% | |
Exit Multiple | 13 | |
Other Investments | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 10.00% | |
Exit Multiple | 6 | |
Other Investments | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 13.00% | |
Exit Multiple | 9 | |
Other Investments | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 10.00% | 11.00% |
Exit Multiple | 13 | 9 |
Other Investments | Market Approach | Minimum | ||
Fair Value Inputs | ||
EBITDA Multiple | 7 | 9 |
Other Investments | Market Approach | Maximum | ||
Fair Value Inputs | ||
EBITDA Multiple | 14 | 13 |
Other Investments | Market Approach | Weighted Average | ||
Fair Value Inputs | ||
EBITDA Multiple | 12 | 10 |
Securities Sold under agreements to repurchase | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 151 | $ 153 |
Securities Sold under agreements to repurchase | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Funding Spread | 0.86% | 0.75% |
Securities Sold under agreements to repurchase | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Funding Spread | 1.16% | 0.91% |
Securities Sold under agreements to repurchase | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Funding Spread | 1.05% | 0.86% |
Other Secured Financings | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 461 | $ 149 |
Other Secured Financings | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Bond Price | 99.00% | |
Other Secured Financings | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Bond Price | 101.00% | |
Other Secured Financings | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 100.00% | |
Other Secured Financings | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Discount Rate | 4.00% | |
Funding Spread | 0.95% | 0.82% |
Other Secured Financings | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Discount Rate | 13.00% | |
Funding Spread | 1.13% | 0.98% |
Other Secured Financings | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Discount Rate | 4.00% | |
Funding Spread | 1.04% | 0.95% |
Other Secured Financings | Option Model | ||
Fair Value Inputs | ||
Volatility Skew | (1.00%) | |
Other Secured Financings | Option Model | Weighted Average | ||
Fair Value Inputs | ||
Volatility Skew | (1.00%) | |
Long-term borrowings | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 1,987 | $ 1,934 |
Long-term borrowings | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable Equity Price | 100.00% | |
Long-term borrowings | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Equity Price | 100.00% | |
Long-term borrowings | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit Correlation | 40.00% | 48.00% |
Long-term borrowings | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit Correlation | 60.00% | 65.00% |
Long-term borrowings | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit Correlation | 52.00% | 51.00% |
Long-term borrowings | Option Model | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 50.00% | |
Equity volatility discount rate | 10.00% | |
Long-term borrowings | Option Model | Minimum | ||
Fair Value Inputs | ||
At the Money Volatility | 20.00% | 18.00% |
Volatility Skew | (1.00%) | (1.00%) |
Equity - Equity Correlation | 40.00% | 40.00% |
Equity - Foreign Exchange Correlation | (70.00%) | (73.00%) |
Equity Alpha | 0.00% | |
Long-term borrowings | Option Model | Maximum | ||
Fair Value Inputs | ||
At the Money Volatility | 50.00% | 32.00% |
Volatility Skew | 0.00% | 0.00% |
Equity - Equity Correlation | 97.00% | 90.00% |
Equity - Foreign Exchange Correlation | (11.00%) | 30.00% |
Equity Alpha | 94.00% | |
Long-term borrowings | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the Money Volatility | 29.00% | 27.00% |
Interest Rate Volatility Skew | 50.00% | |
Volatility Skew | (1.00%) | 0.00% |
Equity - Equity Correlation | 77.00% | 68.00% |
Equity - Foreign Exchange Correlation | (39.00%) | (32.00%) |
Equity Alpha | 67.00% | |
Equity volatility discount rate | 10.00% |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value of Investments Measured at Net Asset Value) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | $ 3,843 | $ 5,009 |
Commitment | 670 | 728 |
Private Equity Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 1,917 | 2,569 |
Commitment | 538 | 613 |
Real Estate Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 1,337 | 1,753 |
Commitment | 128 | 112 |
Long-short Equity Hedge Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 422 | 433 |
Commitment | $ 0 | $ 0 |
Percent of investments redeemable at least quarterly | 34.00% | 36.00% |
Percent of investments redeemable every six months | 51.00% | 47.00% |
Percent of investments redeemable greater than six months | 15.00% | 17.00% |
Fixed Income/Credit-Related Hedge Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | $ 71 | $ 76 |
Commitment | 0 | 0 |
Event Driven Hedge Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 2 | 39 |
Commitment | 0 | 0 |
Multi-strategy Hedge Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 94 | 139 |
Commitment | $ 4 | $ 3 |
Fair Value Disclosures (Fair 61
Fair Value Disclosures (Fair Value of Equity Fund and Hedge Fund) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value, Investments | $ 3,843 | $ 5,009 |
Private Equity Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair value of investment to be liquidated (less than 5 years) | 142 | |
Fair value of investment to be liquidated (5-10 years) | 1,095 | |
Fair value of investment to be liquidated (Over 10 years) | 680 | |
Fair Value, Investments | 1,917 | 2,569 |
Real Estate Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair value of investment to be liquidated (less than 5 years) | 128 | |
Fair value of investment to be liquidated (5-10 years) | 753 | |
Fair value of investment to be liquidated (Over 10 years) | 456 | |
Fair Value, Investments | 1,337 | 1,753 |
Long-short Equity Hedge Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value, Investments | $ 422 | 433 |
Long-short Equity Hedge Funds | Exit Restrictions | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Percent of investments that cannot be redeemed currently | 12.00% | |
Fixed Income Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value, Investments | $ 71 | 76 |
Fixed Income Funds | Exit Restrictions | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Percent of investments that cannot be redeemed currently | 80.00% | |
Event Driven Hedge Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value, Investments | $ 2 | 39 |
Multi-strategy Hedge Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value, Investments | $ 94 | $ 139 |
Multi-strategy Hedge Funds | Initial Period Lock-up Restrictions | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Percent of investments that cannot be redeemed currently | 16.00% | |
Multi-strategy Hedge Funds | Exit Restrictions | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Percent of investments that cannot be redeemed currently | 3.00% |
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 ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Securities purchased under agreements to resell | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | $ 4 | $ 5 | $ 5 |
Deposits | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | (8) | ||
Short-term borrowings | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | 63 | (135) | 173 |
Securities Sold under agreements to repurchase | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | 7 | (11) | (9) |
Long-term borrowings | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | 1,876 | 1,229 | (307) |
Trading | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value attributable to changes in the credit quality of the Company | 618 | 651 | (681) |
Trading | Securities purchased under agreements to resell | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | (6) | (4) | (1) |
Trading | Deposits | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | 52 | ||
Trading | Short-term borrowings | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | 63 | (136) | 181 |
Trading | Securities Sold under agreements to repurchase | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | 13 | (5) | (3) |
Trading | Long-term borrowings | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | 2,404 | 1,867 | 664 |
Interest Income (Expense) | Securities purchased under agreements to resell | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | 10 | 9 | 6 |
Interest Income (Expense) | Deposits | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | (60) | ||
Interest Income (Expense) | Short-term borrowings | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | 0 | 1 | (8) |
Interest Income (Expense) | Securities Sold under agreements to repurchase | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | (6) | (6) | (6) |
Interest Income (Expense) | Long-term borrowings | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) due to changes in fair value | $ (528) | $ (638) | $ (971) |
Fair Value Disclosures (Short-t
Fair Value Disclosures (Short-term and Long-term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term and long-term borrowing, fair value | $ 34,693 | $ 33,539 |
Equity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term and long-term borrowing, fair value | 17,789 | 17,253 |
Interest Rates | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term and long-term borrowing, fair value | 14,255 | 13,545 |
Credit and Foreign Exchange Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term and long-term borrowing, fair value | 2,266 | 2,105 |
Commodities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term and long-term borrowing, fair value | $ 383 | $ 636 |
Fair Value Disclosures (Gains (
Fair Value Disclosures (Gains (Losses) Due to Changes in Instrument Specific Credit Risk) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Short-term and Long-term Borrowings | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument specific credit risk | $ 618 | $ 651 | $ (681) |
Loans and other debt | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument specific credit risk | (193) | 179 | 137 |
Lending Commitments | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument specific credit risk | $ 12 | $ 30 | $ 255 |
Fair Value Disclosures (Net Dif
Fair Value Disclosures (Net Difference between Contractual Principal Amount and Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures | ||
Short-term and long-term debt borrowings | $ 508 | $ (670) |
Loans and other debt | 14,095 | 14,990 |
Loans 90 or more days past due and/or on non-accrual status | 11,651 | 12,916 |
Aggregate fair value of loans in non-accrual status including all loans 90 or more days past due | 1,853 | 1,367 |
Amounts past due 90 days or greater (unpaid principal balance) | $ 885 | $ 643 |
Fair Value Disclosures (Asset66
Fair Value Disclosures (Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Assets | |||
Loans | $ 72,559 | $ 57,119 | |
Other investments | 4,202 | 4,355 | |
Premises, equipment and software costs | 6,373 | 6,108 | |
Intangible assets | 2,984 | 3,159 | $ 3,286 |
Goodwill | 6,584 | 6,588 | 6,595 |
Other assets | 9,043 | 10,742 | |
Liabilities | |||
Other liabilities and accrued expenses | 18,711 | 19,441 | |
Liabilities | 711,281 | 729,406 | |
Fair Value | |||
Other investments | 71,947 | 69,316 | |
Intangible assets | 5 | 6 | |
Nonrecurring | |||
Assets | |||
Loans | 5,850 | 3,336 | 1,822 |
Other investments | 0 | 46 | 46 |
Premises, equipment and software costs | 0 | 0 | 8 |
Intangible assets | 0 | 46 | 92 |
Other assets | 31 | 0 | |
Total carrying value | 5,881 | 3,428 | 1,968 |
Liabilities | |||
Other liabilities and accrued expenses | 476 | 219 | |
Liabilities | 476 | 219 | |
Nonrecurring | Loans | |||
Fair Value | |||
Gains (losses) in fair value adjustment | (220) | (165) | (71) |
Nonrecurring | Other Investments | |||
Fair Value | |||
Gains (losses) in fair value adjustment | (3) | (38) | (38) |
Nonrecurring | Premises, Equipment and Software Costs | |||
Fair Value | |||
Gains (losses) in fair value adjustment | (44) | (58) | (133) |
Nonrecurring | Intangible Assets | |||
Fair Value | |||
Gains (losses) in fair value adjustment | (6) | (44) | |
Nonrecurring | Other Assets | |||
Fair Value | |||
Gains (losses) in fair value adjustment | (22) | (9) | |
Nonrecurring | Assets Total | |||
Fair Value | |||
Gains (losses) in fair value adjustment | (289) | (276) | (286) |
Nonrecurring | Other liabilities and accrued expenses | |||
Fair Value | |||
Gains (losses) in fair value adjustment | (207) | (165) | |
Nonrecurring | Liabilities Total | |||
Fair Value | |||
Gains (losses) in fair value adjustment | (207) | (165) | |
Nonrecurring | Level 1 | |||
Fair Value | |||
Loans | 0 | 0 | 0 |
Other investments | 0 | 0 | 0 |
Premises, equipment and software costs | 0 | 0 | 0 |
Intangible assets | 0 | 0 | |
Other assets | 0 | 0 | |
Total assets | 0 | 0 | 0 |
Other Liabilities and accrued expenses | 0 | 0 | |
Total liabilities | 0 | 0 | |
Nonrecurring | Level 2 | |||
Fair Value | |||
Loans | 3,400 | 2,386 | 1,616 |
Other investments | 0 | 0 | 0 |
Premises, equipment and software costs | 0 | 0 | 0 |
Intangible assets | 0 | 0 | |
Other assets | 31 | 0 | |
Total assets | 3,431 | 2,386 | 1,616 |
Other Liabilities and accrued expenses | 418 | 178 | |
Total liabilities | 418 | 178 | |
Nonrecurring | Level 3 | |||
Fair Value | |||
Loans | 2,450 | 950 | 206 |
Other investments | 0 | 46 | 46 |
Premises, equipment and software costs | 0 | 0 | 8 |
Intangible assets | 46 | 92 | |
Other assets | 0 | 0 | |
Total assets | 2,450 | 1,042 | $ 352 |
Other Liabilities and accrued expenses | 58 | 41 | |
Total liabilities | $ 58 | $ 41 |
Fair Value Disclosures (Financi
Fair Value Disclosures (Financial Instruments Not Carried at FV) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financial Assets: | |||
Cash and due from banks | $ 19,827 | $ 21,381 | $ 16,602 |
Interest bearing deposits with banks | 34,256 | 25,603 | $ 43,281 |
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 31,469 | 40,607 | |
Securities purchased under agreements to resell | 87,657 | 83,288 | |
Securities borrowed | 142,416 | 136,708 | |
Customer and other receivables | 45,407 | 48,961 | |
Loans | 72,559 | 57,119 | |
Financial Liabilities | |||
Deposits | 156,034 | 133,544 | |
Short-term borrowings | 2,173 | 2,261 | |
Securities sold under agreement to repurchase | 36,692 | 69,949 | |
Securities loaned | 19,358 | 25,219 | |
Other secured financings | 9,464 | 12,085 | |
Customer and other payables | 186,626 | 181,069 | |
Long-term borrowings | 153,768 | 152,772 | |
Additional Disclosures | |||
Lending commitment notional amount | 99,500 | 86,800 | |
Carrying Value | |||
Financial Assets: | |||
Cash and due from banks | 19,827 | 21,381 | |
Interest bearing deposits with banks | 34,256 | 25,603 | |
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 31,469 | 40,607 | |
Investment securities - HTM securities | 5,224 | 100 | |
Securities purchased under agreements to resell | 86,851 | 82,175 | |
Securities borrowed | 142,416 | 136,708 | |
Customer and other receivables | 41,676 | 45,116 | |
Loans | 85,759 | 66,577 | |
Financial Liabilities | |||
Deposits | 155,909 | 133,544 | |
Short-term borrowings | 525 | 496 | |
Securities sold under agreement to repurchase | 36,009 | 69,337 | |
Securities loaned | 19,358 | 25,219 | |
Other secured financings | 6,610 | 7,581 | |
Customer and other payables | 183,895 | 178,373 | |
Long-term borrowings | 120,723 | 120,998 | |
Fair Value | |||
Financial Assets: | |||
Cash and due from banks | 19,827 | 21,381 | |
Interest bearing deposits with banks | 34,256 | 25,603 | |
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 31,469 | 40,607 | |
Investment securities - HTM securities | 5,188 | 100 | |
Securities purchased under agreements to resell | 86,837 | 82,165 | |
Securities borrowed | 142,414 | 136,708 | |
Customer and other receivables | 41,576 | 45,028 | |
Loans | 86,423 | 67,800 | |
Financial Liabilities | |||
Deposits | 156,163 | 133,572 | |
Short-term borrowings | 525 | 496 | |
Securities sold under agreement to repurchase | 36,060 | 69,433 | |
Securities loaned | 19,382 | 25,244 | |
Other secured financings | 6,610 | 7,881 | |
Customer and other payables | 183,895 | 178,373 | |
Long-term borrowings | 123,219 | 124,961 | |
Additional Disclosures | |||
lending commitment fair value liability | 2,172 | 1,178 | |
Fair Value | Level 1 | |||
Financial Assets: | |||
Cash and due from banks | 19,827 | 21,381 | |
Interest bearing deposits with banks | 34,256 | 25,603 | |
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 31,469 | 40,607 | |
Investment securities - HTM securities | 998 | 100 | |
Securities purchased under agreements to resell | 0 | 0 | |
Securities borrowed | 0 | 0 | |
Customer and other receivables | 0 | 0 | |
Loans | 0 | 0 | |
Financial Liabilities | |||
Deposits | 0 | 0 | |
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 | 0 | |
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 | |
Investment securities - HTM securities | 4,190 | 0 | |
Securities purchased under agreements to resell | 86,186 | 81,981 | |
Securities borrowed | 142,266 | 136,696 | |
Customer and other receivables | 36,752 | 39,945 | |
Loans | 19,241 | 18,212 | |
Financial Liabilities | |||
Deposits | 156,163 | 133,572 | |
Short-term borrowings | 525 | 496 | |
Securities sold under agreement to repurchase | 34,150 | 63,921 | |
Securities loaned | 19,192 | 24,740 | |
Other secured financings | 5,333 | 5,465 | |
Customer and other payables | 183,895 | 178,373 | |
Long-term borrowings | 123,219 | 124,150 | |
Additional Disclosures | |||
lending commitment fair value liability | 1,791 | 928 | |
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 | |
Investment securities - HTM securities | 0 | 0 | |
Securities purchased under agreements to resell | 651 | 184 | |
Securities borrowed | 148 | 12 | |
Customer and other receivables | 4,824 | 5,083 | |
Loans | 67,182 | 49,588 | |
Financial Liabilities | |||
Deposits | 0 | 0 | |
Short-term borrowings | 0 | 0 | |
Securities sold under agreement to repurchase | 1,910 | 5,512 | |
Securities loaned | 190 | 504 | |
Other secured financings | 1,277 | 2,416 | |
Customer and other payables | 0 | 0 | |
Long-term borrowings | 0 | 811 | |
Additional Disclosures | |||
lending commitment fair value liability | $ 381 | $ 250 |
Derivative Instruments and He68
Derivative Instruments and Hedging Activities (Other Disclosures) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives | ||
Cash collateral receivables | $ 21 | |
Cash collateral payables | $ 86 | $ 30 |
Derivative Instruments and He69
Derivative Instruments and Hedging Activities (Fair Value and Notional of Derivative Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Assets | ||
Total derivatives | $ 471,578 | $ 676,371 |
Cash collateral netting | (51,372) | (63,195) |
Counterparty netting | (391,593) | (576,782) |
Total derivative assets | 28,613 | 36,394 |
Derivative Liabilities | ||
Total derivatives | 457,350 | 654,306 |
Cash collateral netting | (36,283) | (37,312) |
Counterparty netting | (391,593) | (576,782) |
Total derivative liabilities | 29,474 | 40,212 |
Derivatives, Notional Amount | ||
Derivative assets | 14,749,210 | 19,389,415 |
Derivative liabilities | 14,074,223 | 19,180,921 |
Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 340,573 | 427,079 |
Cash collateral netting | (50,335) | (58,541) |
Counterparty netting | (265,707) | (338,041) |
Total derivative assets | 24,531 | 30,497 |
Derivative Liabilities | ||
Total derivatives | 324,671 | 410,003 |
Cash collateral netting | (33,332) | (37,054) |
Counterparty netting | (265,707) | (338,041) |
Total derivative liabilities | 25,632 | 34,908 |
Derivatives, Notional Amount | ||
Derivative assets | 7,273,921 | 8,090,757 |
Derivative liabilities | 6,864,262 | 7,719,141 |
Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 106,623 | 217,169 |
Cash collateral netting | (1,037) | (4,654) |
Counterparty netting | (104,294) | (210,922) |
Total derivative assets | 1,292 | 1,593 |
Derivative Liabilities | ||
Total derivatives | 108,063 | 211,695 |
Cash collateral netting | (2,951) | (258) |
Counterparty netting | (104,294) | (210,922) |
Total derivative liabilities | 818 | 515 |
Derivatives, Notional Amount | ||
Derivative assets | 5,936,757 | 9,394,335 |
Derivative liabilities | 5,837,356 | 9,311,657 |
Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 24,382 | 32,123 |
Cash collateral netting | 0 | 0 |
Counterparty netting | (21,592) | (27,819) |
Total derivative assets | 2,790 | 4,304 |
Derivative Liabilities | ||
Total derivatives | 24,616 | 32,608 |
Cash collateral netting | 0 | 0 |
Counterparty netting | (21,592) | (27,819) |
Total derivative liabilities | 3,024 | 4,789 |
Derivatives, Notional Amount | ||
Derivative assets | 1,538,532 | 1,904,323 |
Derivative liabilities | 1,372,605 | 2,150,123 |
Designated as Accounting Hedges | ||
Derivative Assets | ||
Total derivatives | 4,434 | 5,504 |
Derivative Liabilities | ||
Total derivatives | 332 | 230 |
Derivatives, Notional Amount | ||
Derivative assets | 78,524 | 81,639 |
Derivative liabilities | 18,488 | 11,224 |
Designated as Accounting Hedges | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 2,991 | 4,445 |
Derivative Liabilities | ||
Total derivatives | 76 | 130 |
Derivatives, Notional Amount | ||
Derivative assets | 42,995 | 53,686 |
Derivative liabilities | 8,164 | 3,515 |
Designated as Accounting Hedges | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 1,443 | 1,059 |
Derivative Liabilities | ||
Total derivatives | 256 | 100 |
Derivatives, Notional Amount | ||
Derivative assets | 35,529 | 27,953 |
Derivative liabilities | 10,324 | 7,709 |
Designated as Accounting Hedges | Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 0 | 0 |
Derivative Liabilities | ||
Total derivatives | 0 | 0 |
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Designated as Accounting Hedges | Interest Rate Contracts | ||
Derivative Assets | ||
Total derivatives | 4,267 | 5,000 |
Derivative Liabilities | ||
Total derivatives | 270 | 224 |
Derivatives, Notional Amount | ||
Derivative assets | 72,361 | 72,016 |
Derivative liabilities | 13,429 | 9,612 |
Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 2,825 | 3,947 |
Derivative Liabilities | ||
Total derivatives | 20 | 125 |
Derivatives, Notional Amount | ||
Derivative assets | 36,999 | 44,324 |
Derivative liabilities | 3,560 | 2,024 |
Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 1,442 | 1,053 |
Derivative Liabilities | ||
Total derivatives | 250 | 99 |
Derivatives, Notional Amount | ||
Derivative assets | 35,362 | 27,692 |
Derivative liabilities | 9,869 | 7,588 |
Designated as Accounting Hedges | Interest Rate Contracts | Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 0 | 0 |
Derivative Liabilities | ||
Total derivatives | 0 | 0 |
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Designated as Accounting Hedges | Foreign Exchange Contracts | ||
Derivative Assets | ||
Total derivatives | 167 | 504 |
Derivative Liabilities | ||
Total derivatives | 62 | 6 |
Derivatives, Notional Amount | ||
Derivative assets | 6,163 | 9,623 |
Derivative liabilities | 5,059 | 1,612 |
Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 166 | 498 |
Derivative Liabilities | ||
Total derivatives | 56 | 5 |
Derivatives, Notional Amount | ||
Derivative assets | 5,996 | 9,362 |
Derivative liabilities | 4,604 | 1,491 |
Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 1 | 6 |
Derivative Liabilities | ||
Total derivatives | 6 | 1 |
Derivatives, Notional Amount | ||
Derivative assets | 167 | 261 |
Derivative liabilities | 455 | 121 |
Designated as Accounting Hedges | Foreign Exchange Contracts | Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 0 | 0 |
Derivative Liabilities | ||
Total derivatives | 0 | 0 |
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | ||
Derivative Assets | ||
Total derivatives | 467,144 | 670,867 |
Derivative Liabilities | ||
Total derivatives | 457,018 | 654,076 |
Derivatives, Notional Amount | ||
Derivative assets | 14,670,686 | 19,307,776 |
Derivative liabilities | 14,055,735 | 19,169,697 |
Not Designated as Accounting Hedges | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 337,582 | 422,634 |
Derivative Liabilities | ||
Total derivatives | 324,595 | 409,873 |
Derivatives, Notional Amount | ||
Derivative assets | 7,230,926 | 8,037,071 |
Derivative liabilities | 6,856,098 | 7,715,626 |
Not Designated as Accounting Hedges | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 105,180 | 216,110 |
Derivative Liabilities | ||
Total derivatives | 107,807 | 211,595 |
Derivatives, Notional Amount | ||
Derivative assets | 5,901,228 | 9,366,382 |
Derivative liabilities | 5,827,032 | 9,303,948 |
Not Designated as Accounting Hedges | Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 24,382 | 32,123 |
Derivative Liabilities | ||
Total derivatives | 24,616 | 32,608 |
Derivatives, Notional Amount | ||
Derivative assets | 1,538,532 | 1,904,323 |
Derivative liabilities | 1,372,605 | 2,150,123 |
Not Designated as Accounting Hedges | Interest Rate Contracts | ||
Derivative Assets | ||
Total derivatives | 321,777 | 493,173 |
Derivative Liabilities | ||
Total derivatives | 307,139 | 472,354 |
Derivatives, Notional Amount | ||
Derivative assets | 11,315,172 | 15,509,463 |
Derivative liabilities | 10,790,071 | 15,468,324 |
Not Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 220,289 | 281,214 |
Derivative Liabilities | ||
Total derivatives | 203,004 | 264,579 |
Derivatives, Notional Amount | ||
Derivative assets | 4,348,002 | 4,854,953 |
Derivative liabilities | 4,030,039 | 4,615,886 |
Not Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 101,276 | 211,552 |
Derivative Liabilities | ||
Total derivatives | 103,852 | 207,482 |
Derivatives, Notional Amount | ||
Derivative assets | 5,748,525 | 9,187,454 |
Derivative liabilities | 5,682,322 | 9,138,417 |
Not Designated as Accounting Hedges | Interest Rate Contracts | Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 212 | 407 |
Derivative Liabilities | ||
Total derivatives | 283 | 293 |
Derivatives, Notional Amount | ||
Derivative assets | 1,218,645 | 1,467,056 |
Derivative liabilities | 1,077,710 | 1,714,021 |
Not Designated as Accounting Hedges | Credit Contracts | ||
Derivative Assets | ||
Total derivatives | 22,919 | 32,182 |
Derivative Liabilities | ||
Total derivatives | 23,665 | 32,109 |
Derivatives, Notional Amount | ||
Derivative assets | 725,032 | 973,831 |
Derivative liabilities | 693,415 | 868,235 |
Not Designated as Accounting Hedges | Credit Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 19,310 | 27,776 |
Derivative Liabilities | ||
Total derivatives | 19,942 | 28,165 |
Derivatives, Notional Amount | ||
Derivative assets | 585,731 | 806,441 |
Derivative liabilities | 562,027 | 714,181 |
Not Designated as Accounting Hedges | Credit Contracts | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 3,609 | 4,406 |
Derivative Liabilities | ||
Total derivatives | 3,723 | 3,944 |
Derivatives, Notional Amount | ||
Derivative assets | 139,301 | 167,390 |
Derivative liabilities | 131,388 | 154,054 |
Not Designated as Accounting Hedges | Credit Contracts | Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 0 | 0 |
Derivative Liabilities | ||
Total derivatives | 0 | 0 |
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | ||
Derivative Assets | ||
Total derivatives | 64,788 | 72,597 |
Derivative Liabilities | ||
Total derivatives | 65,288 | 72,346 |
Derivatives, Notional Amount | ||
Derivative assets | 1,928,407 | 1,976,544 |
Derivative liabilities | 1,883,992 | 1,960,416 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 64,438 | 72,362 |
Derivative Liabilities | ||
Total derivatives | 65,034 | 72,156 |
Derivatives, Notional Amount | ||
Derivative assets | 1,907,290 | 1,955,343 |
Derivative liabilities | 1,868,015 | 1,947,178 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 295 | 152 |
Derivative Liabilities | ||
Total derivatives | 232 | 169 |
Derivatives, Notional Amount | ||
Derivative assets | 13,402 | 11,538 |
Derivative liabilities | 13,322 | 11,477 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 55 | 83 |
Derivative Liabilities | ||
Total derivatives | 22 | 21 |
Derivatives, Notional Amount | ||
Derivative assets | 7,715 | 9,663 |
Derivative liabilities | 2,655 | 1,761 |
Not Designated as Accounting Hedges | Equity Contracts | ||
Derivative Assets | ||
Total derivatives | 40,289 | 48,124 |
Derivative Liabilities | ||
Total derivatives | 46,132 | 55,572 |
Derivatives, Notional Amount | ||
Derivative assets | 546,629 | 570,527 |
Derivative liabilities | 562,000 | 642,089 |
Not Designated as Accounting Hedges | Equity Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 20,212 | 23,208 |
Derivative Liabilities | ||
Total derivatives | 25,708 | 30,061 |
Derivatives, Notional Amount | ||
Derivative assets | 316,770 | 299,363 |
Derivative liabilities | 332,734 | 339,884 |
Not Designated as Accounting Hedges | Equity Contracts | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 0 | 0 |
Derivative Liabilities | ||
Total derivatives | 0 | 0 |
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | Equity Contracts | Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 20,077 | 24,916 |
Derivative Liabilities | ||
Total derivatives | 20,424 | 25,511 |
Derivatives, Notional Amount | ||
Derivative assets | 229,859 | 271,164 |
Derivative liabilities | 229,266 | 302,205 |
Not Designated as Accounting Hedges | Commodity Contracts | ||
Derivative Assets | ||
Total derivatives | 17,152 | 24,415 |
Derivative Liabilities | ||
Total derivatives | 14,751 | 21,523 |
Derivatives, Notional Amount | ||
Derivative assets | 149,762 | 272,232 |
Derivative liabilities | 122,143 | 225,155 |
Not Designated as Accounting Hedges | Commodity Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 13,114 | 17,698 |
Derivative Liabilities | ||
Total derivatives | 10,864 | 14,740 |
Derivatives, Notional Amount | ||
Derivative assets | 67,449 | 115,792 |
Derivative liabilities | 59,169 | 93,019 |
Not Designated as Accounting Hedges | Commodity Contracts | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 0 | 0 |
Derivative Liabilities | ||
Total derivatives | 0 | 0 |
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | Commodity Contracts | Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 4,038 | 6,717 |
Derivative Liabilities | ||
Total derivatives | 3,887 | 6,783 |
Derivatives, Notional Amount | ||
Derivative assets | 82,313 | 156,440 |
Derivative liabilities | 62,974 | 132,136 |
Not Designated as Accounting Hedges | Other Contracts | ||
Derivative Assets | ||
Total derivatives | 219 | 376 |
Derivative Liabilities | ||
Total derivatives | 43 | 172 |
Derivatives, Notional Amount | ||
Derivative assets | 5,684 | 5,179 |
Derivative liabilities | 4,114 | 5,478 |
Not Designated as Accounting Hedges | Other Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 219 | 376 |
Derivative Liabilities | ||
Total derivatives | 43 | 172 |
Derivatives, Notional Amount | ||
Derivative assets | 5,684 | 5,179 |
Derivative liabilities | 4,114 | 5,478 |
Not Designated as Accounting Hedges | Other Contracts | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 0 | 0 |
Derivative Liabilities | ||
Total derivatives | 0 | 0 |
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | Other Contracts | Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 0 | 0 |
Derivative Liabilities | ||
Total derivatives | 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 | 1,009,500 | |
Derivative notional amount | 685,300 | |
Not Designated as Accounting Hedges | Future Contracts | Short | ||
Derivatives, Notional Amount | ||
Derivative assets | 653,000 | |
Derivative notional amount | 1,122,300 | |
Not Designated as Accounting Hedges | Future Contracts | Customer and Other Receivables | ||
Derivatives, Notional Amount | ||
Derivative assets, unsettled fair value | 1,145 | 472 |
Not Designated as Accounting Hedges | Future Contracts | Customer and Other Payables | ||
Derivatives, Notional Amount | ||
Derivative liabilities, unsettled fair value | $ 437 | $ 21 |
Derivative Instruments and He70
Derivative Instruments and Hedging Activities (Offsetting of Derivative Instruments and Related Collateral) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Assets | ||
Gross amounts | $ 471,578 | $ 676,371 |
Amounts offset in the Consolidated Statements of Financial Condition | (442,965) | (639,977) |
Net amounts presented in the Consolidated Statements of Financial Condition | 28,613 | 36,394 |
Amounts not offset against financial instruments collateral | (9,190) | (9,844) |
Amounts not offset against other cash collateral | (9) | (19) |
Net exposure | 19,414 | 26,531 |
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 | 4,200 | 6,500 |
Derivative Liabilities | ||
Gross amounts | 457,350 | 654,306 |
Amounts offset in the Consolidated Statements of Financial Condition | (427,876) | (614,094) |
Net amounts presented in the Consolidated Statements of Financial Condition | 29,474 | 40,212 |
Amounts not offset against financial instruments collateral | (5,789) | (11,918) |
Amounts not offset against other cash collateral | (5) | (185) |
Net exposure | 23,680 | 28,109 |
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 | 5,200 | 6,900 |
Bilateral OTC | ||
Derivative Assets | ||
Gross amounts | 340,573 | 427,079 |
Amounts offset in the Consolidated Statements of Financial Condition | (316,042) | (396,582) |
Net amounts presented in the Consolidated Statements of Financial Condition | 24,531 | 30,497 |
Amounts not offset against financial instruments collateral | (9,190) | (9,844) |
Amounts not offset against other cash collateral | (9) | (19) |
Net exposure | 15,332 | 20,634 |
Derivative Liabilities | ||
Gross amounts | 324,671 | 410,003 |
Amounts offset in the Consolidated Statements of Financial Condition | (299,039) | (375,095) |
Net amounts presented in the Consolidated Statements of Financial Condition | 25,632 | 34,908 |
Amounts not offset against financial instruments collateral | (5,384) | (11,192) |
Amounts not offset against other cash collateral | (5) | (179) |
Net exposure | 20,243 | 23,537 |
Cleared OTC | ||
Derivative Assets | ||
Gross amounts | 106,623 | 217,169 |
Amounts offset in the Consolidated Statements of Financial Condition | (105,331) | (215,576) |
Net amounts presented in the Consolidated Statements of Financial Condition | 1,292 | 1,593 |
Amounts not offset against financial instruments collateral | 0 | 0 |
Amounts not offset against other cash collateral | 0 | 0 |
Net exposure | 1,292 | 1,593 |
Derivative Liabilities | ||
Gross amounts | 108,063 | 211,695 |
Amounts offset in the Consolidated Statements of Financial Condition | (107,245) | (211,180) |
Net amounts presented in the Consolidated Statements of Financial Condition | 818 | 515 |
Amounts not offset against financial instruments collateral | 0 | 0 |
Amounts not offset against other cash collateral | 0 | (6) |
Net exposure | 818 | 509 |
Exchange Traded | ||
Derivative Assets | ||
Gross amounts | 24,382 | 32,123 |
Amounts offset in the Consolidated Statements of Financial Condition | (21,592) | (27,819) |
Net amounts presented in the Consolidated Statements of Financial Condition | 2,790 | 4,304 |
Amounts not offset against financial instruments collateral | 0 | 0 |
Amounts not offset against other cash collateral | 0 | 0 |
Net exposure | 2,790 | 4,304 |
Derivative Liabilities | ||
Gross amounts | 24,616 | 32,608 |
Amounts offset in the Consolidated Statements of Financial Condition | (21,592) | (27,819) |
Net amounts presented in the Consolidated Statements of Financial Condition | 3,024 | 4,789 |
Amounts not offset against financial instruments collateral | (405) | (726) |
Amounts not offset against other cash collateral | 0 | 0 |
Net exposure | $ 2,619 | $ 4,063 |
Derivative Instruments and He71
Derivative Instruments and Hedging Activities (Gains or Losses on Derivative Instruments, Related Hedge Items and Hedge Ineffectiveness) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Designated as Accounting Hedges | Interest Expense | |||
Derivatives | |||
Gains (Losses) on Fair Value Hedges Recognized | $ (239) | $ (154) | $ 3 |
Designated as Accounting Hedges | Interest Expense | Derivatives | |||
Derivatives | |||
Gains (Losses) on Fair Value Hedges Recognized | (700) | 1,462 | (4,332) |
Designated as Accounting Hedges | Interest Expense | Borrowings | |||
Derivatives | |||
Gains (Losses) on Fair Value Hedges Recognized | 461 | (1,616) | 4,335 |
Not Designated as Accounting Hedges | |||
Derivatives | |||
Gains (Losses) Recognized in Income | 9,496 | 8,726 | 10,040 |
Debt valuation adjustment | 618 | 651 | (681) |
Total | 10,114 | 9,377 | 9,359 |
Not Designated as Accounting Hedges | Interest Rate Contracts | |||
Derivatives | |||
Gains (Losses) Recognized in Income | 1,249 | 1,065 | 820 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | |||
Derivatives | |||
Gains (Losses) Recognized in Income | 984 | 729 | 963 |
Not Designated as Accounting Hedges | Equity security and index contracts | |||
Derivatives | |||
Gains (Losses) Recognized in Income | 5,695 | 4,603 | 5,044 |
Not Designated as Accounting Hedges | Commodity and other contracts | |||
Derivatives | |||
Gains (Losses) Recognized in Income | 793 | 1,055 | 688 |
Not Designated as Accounting Hedges | Credit Contracts | |||
Derivatives | |||
Gains (Losses) Recognized in Income | 775 | 1,274 | 2,525 |
Net Investment Hedges | Designated as Accounting Hedges | Foreign Exchange Contracts | |||
Derivatives | |||
Gain (Losses) Recognized in OCI (effective portion) | 434 | 606 | 448 |
Gain (loss) recognized in income related to amounts excluded from hedge effectiveness testing | $ 149 | $ 186 | $ 154 |
Derivative Instruments and He72
Derivative Instruments and Hedging Activities (Fair Value of OTC Derivatives in a Gain Position) (Details) - OTC - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Credit Derivatives | ||
Years to maturity, less than 1 | $ 20,236 | $ 23,226 |
Years to maturity, 1 - 3 | 17,840 | 20,732 |
Years to maturity, 3 - 5 | 10,582 | 15,735 |
Years to maturity, over 5 | 49,174 | 58,017 |
Cross-maturity and cash collateral netting | (72,018) | (85,639) |
Net exposure post-cash collateral | 25,814 | 32,071 |
Net exposure post-collateral | 16,624 | 22,227 |
AAA | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 203 | 499 |
Years to maturity, 1 - 3 | 453 | 246 |
Years to maturity, 3 - 5 | 827 | 1,313 |
Years to maturity, over 5 | 3,665 | 4,281 |
Cross-maturity and cash collateral netting | (4,319) | (5,009) |
Net exposure post-cash collateral | 829 | 1,330 |
Net exposure post-collateral | 715 | 1,035 |
AA | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 2,689 | 2,679 |
Years to maturity, 1 - 3 | 2,000 | 2,811 |
Years to maturity, 3 - 5 | 1,876 | 2,704 |
Years to maturity, over 5 | 9,223 | 14,137 |
Cross-maturity and cash collateral netting | (10,981) | (15,415) |
Net exposure post-cash collateral | 4,807 | 6,916 |
Net exposure post-collateral | 2,361 | 4,719 |
A | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 9,748 | 11,733 |
Years to maturity, 1 - 3 | 8,191 | 10,833 |
Years to maturity, 3 - 5 | 4,774 | 7,585 |
Years to maturity, over 5 | 20,918 | 23,968 |
Cross-maturity and cash collateral netting | (34,916) | (43,644) |
Net exposure post-cash collateral | 8,715 | 10,475 |
Net exposure post-collateral | 5,448 | 6,520 |
BBB | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 3,614 | 5,119 |
Years to maturity, 1 - 3 | 4,863 | 3,753 |
Years to maturity, 3 - 5 | 1,948 | 2,592 |
Years to maturity, over 5 | 11,801 | 13,132 |
Cross-maturity and cash collateral netting | (15,086) | (15,844) |
Net exposure post-cash collateral | 7,140 | 8,752 |
Net exposure post-collateral | 4,934 | 6,035 |
Non-investment grade | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 3,982 | 3,196 |
Years to maturity, 1 - 3 | 2,333 | 3,089 |
Years to maturity, 3 - 5 | 1,157 | 1,541 |
Years to maturity, over 5 | 3,567 | 2,499 |
Cross-maturity and cash collateral netting | (6,716) | (5,727) |
Net exposure post-cash collateral | 4,323 | 4,598 |
Net exposure post-collateral | $ 3,166 | $ 3,918 |
Derivative Instruments and He73
Derivative Instruments and Hedging Activities (Credit Risk Related Contingencies) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Derivatives | |
Aggregate fair value of derivative contracts that contain credit-risk-related contingent features that are in a net liability position | $ 23,526 |
Posted collateral | 19,070 |
Bilateral arrangement | |
Derivatives | |
Amount of additional collateral or termination payments that could be called by counterparties | 1,573 |
One-notch Downgrade | |
Derivatives | |
Amount of additional collateral or termination payments that could be called by counterparties | 1,224 |
Two-notch Downgrade | |
Derivatives | |
Amount of additional collateral or termination payments that could be called by counterparties | $ 1,146 |
Derivative Instruments and He74
Derivative Instruments and Hedging Activities (Credit Derivatives and Other Credit Derivatives) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Protection Sold | ||
Credit Derivatives | ||
Derivative notional amount | $ 689,979 | $ 909,273 |
Credit risk derivative (assets) / liability, fair value | 761 | (7,111) |
Protection Sold | Less than 1 Year | ||
Credit Derivatives | ||
Derivative notional amount | 208,713 | 188,408 |
Protection Sold | 1 - 3 Years | ||
Credit Derivatives | ||
Derivative notional amount | 298,137 | 439,538 |
Protection Sold | 3 - 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 149,173 | 233,887 |
Protection Sold | Over 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 33,956 | 47,440 |
Protection Sold | Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 689,519 | 908,062 |
Credit risk derivative (assets) / liability, fair value | 785 | (6,611) |
Protection Sold | Credit Default Swaps | Less than 1 Year | ||
Credit Derivatives | ||
Derivative notional amount | 208,694 | 188,357 |
Protection Sold | Credit Default Swaps | 1 - 3 Years | ||
Credit Derivatives | ||
Derivative notional amount | 298,030 | 438,999 |
Protection Sold | Credit Default Swaps | 3 - 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 149,171 | 233,886 |
Protection Sold | Credit Default Swaps | Over 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 33,624 | 46,820 |
Protection Sold | Single Name Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 420,806 | 535,415 |
Credit risk derivative (assets) / liability, fair value | 1,980 | (2,479) |
Protection Sold | Single Name Credit Default Swaps | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 299,670 | 406,767 |
Credit risk derivative (assets) / liability, fair value | (1,831) | (4,252) |
Protection Sold | Single Name Credit Default Swaps | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 121,136 | 128,648 |
Credit risk derivative (assets) / liability, fair value | 3,811 | 1,773 |
Protection Sold | Single Name Credit Default Swaps | Less than 1 Year | ||
Credit Derivatives | ||
Derivative notional amount | 122,597 | 112,730 |
Protection Sold | Single Name Credit Default Swaps | Less than 1 Year | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 84,543 | 82,873 |
Protection Sold | Single Name Credit Default Swaps | Less than 1 Year | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 38,054 | 29,857 |
Protection Sold | Single Name Credit Default Swaps | 1 - 3 Years | ||
Credit Derivatives | ||
Derivative notional amount | 194,728 | 265,842 |
Protection Sold | Single Name Credit Default Swaps | 1 - 3 Years | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 138,467 | 199,776 |
Protection Sold | Single Name Credit Default Swaps | 1 - 3 Years | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 56,261 | 66,066 |
Protection Sold | Single Name Credit Default Swaps | 3 - 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 88,186 | 132,639 |
Protection Sold | Single Name Credit Default Swaps | 3 - 5 Years | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 63,754 | 103,628 |
Protection Sold | Single Name Credit Default Swaps | 3 - 5 Years | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 24,432 | 29,011 |
Protection Sold | Single Name Credit Default Swaps | Over 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 15,295 | 24,204 |
Protection Sold | Single Name Credit Default Swaps | Over 5 Years | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 12,906 | 20,490 |
Protection Sold | Single Name Credit Default Swaps | Over 5 Years | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 2,389 | 3,714 |
Protection Sold | Total Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 268,713 | 372,647 |
Credit risk derivative (assets) / liability, fair value | (1,195) | (4,132) |
Protection Sold | Total Index and Basket Credit Default Swaps | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 143,742 | 225,712 |
Credit risk derivative (assets) / liability, fair value | (1,977) | (4,624) |
Protection Sold | Total Index and Basket Credit Default Swaps | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 124,971 | 146,935 |
Credit risk derivative (assets) / liability, fair value | 782 | 492 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 Year | ||
Credit Derivatives | ||
Derivative notional amount | 86,097 | 75,627 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 Year | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 33,507 | 49,877 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 Year | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 52,590 | 25,750 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 Years | ||
Credit Derivatives | ||
Derivative notional amount | 103,302 | 173,157 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 Years | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 59,403 | 85,052 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 Years | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 43,899 | 88,105 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 60,985 | 101,247 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 Years | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 45,505 | 78,276 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 Years | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 15,480 | 22,971 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 18,329 | 22,616 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 Years | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 5,327 | 12,507 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 Years | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 13,002 | 10,109 |
Protection Sold | Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 199,688 | 276,465 |
Credit risk derivative (assets) / liability, fair value | (102) | (1,777) |
Protection Sold | Tranched Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 69,025 | 96,182 |
Credit risk derivative (assets) / liability, fair value | (1,093) | (2,355) |
Protection Sold | Single Name, and Non-tranched Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 619,500 | 804,700 |
Protection Sold | Other Credit Contracts | ||
Credit Derivatives | ||
Derivative notional amount | 460 | 1,211 |
Credit risk derivative (assets) / liability, fair value | (24) | (500) |
Protection Sold | Other Credit Contracts | Less than 1 Year | ||
Credit Derivatives | ||
Derivative notional amount | 19 | 51 |
Protection Sold | Other Credit Contracts | 1 - 3 Years | ||
Credit Derivatives | ||
Derivative notional amount | 107 | 539 |
Protection Sold | Other Credit Contracts | 3 - 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 2 | 1 |
Protection Sold | Other Credit Contracts | Over 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 332 | 620 |
Protection Purchased | Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 728,928 | 934,004 |
Credit risk derivative (assets) / liability, fair value | (39) | 6,538 |
Protection Purchased | Single Name Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 405,361 | 509,872 |
Credit risk derivative (assets) / liability, fair value | (2,079) | 1,641 |
Protection Purchased | Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 173,936 | 229,789 |
Credit risk derivative (assets) / liability, fair value | (82) | 1,563 |
Protection Purchased | Tranched Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 149,631 | 194,343 |
Credit risk derivative (assets) / liability, fair value | 2,122 | 3,334 |
Protection Purchased | Single Name, and Non-tranched Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | $ 577,700 | $ 731,000 |
Investment Securities (Schedule
Investment Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investment securities | ||
Total Investment securities, Amortized cost | $ 72,493 | $ 69,437 |
Total Investment securities, Gross unrealized gains | 44 | 159 |
Total Investment securities, Gross unrealized losses | 590 | 280 |
Total Investment securities, fair value | 71,947 | 69,316 |
AFS securities | ||
Total AFS securities, fair value | $ 66,759 | $ 69,216 |
FFELP Student Loan Asset-backed Securities | ||
Investment securities | ||
Percent of principal balance and interest guaranteed by the U.S. Department of Education | 95.00% | 95.00% |
AFS securities | ||
AFS securities | ||
AFS debt securities, Amortized cost | $ 67,269 | $ 69,337 |
Total AFS securities, Gross unrealized gains | 43 | 159 |
Total AFS securities, Gross unrealized loss | 553 | 280 |
Total AFS securities, fair value | 66,759 | 69,216 |
AFS Debt Securities | ||
AFS securities | ||
AFS debt securities, Amortized cost | 67,254 | 69,322 |
AFS debt securities, Gross unrealized gains | 43 | 159 |
AFS debt securities, Gross unrealized losses | 545 | 276 |
AFS debt securities, Fair value | 66,752 | 69,205 |
AFS Debt Securities | U.S. Government and Agency Securities | ||
AFS securities | ||
AFS debt securities, Amortized cost | 52,658 | 53,885 |
AFS debt securities, Gross unrealized gains | 34 | 119 |
AFS debt securities, Gross unrealized losses | 299 | 139 |
AFS debt securities, Fair value | 52,393 | 53,865 |
AFS Debt Securities | U.S. Treasury Securities | ||
AFS securities | ||
AFS debt securities, Amortized cost | 31,555 | 35,855 |
AFS debt securities, Gross unrealized gains | 5 | 42 |
AFS debt securities, Gross unrealized losses | 143 | 67 |
AFS debt securities, Fair value | 31,417 | 35,830 |
AFS Debt Securities | U.S. Agency Securities | ||
AFS securities | ||
AFS debt securities, Amortized cost | 21,103 | 18,030 |
AFS debt securities, Gross unrealized gains | 29 | 77 |
AFS debt securities, Gross unrealized losses | 156 | 72 |
AFS debt securities, Fair value | 20,976 | 18,035 |
AFS Debt Securities | Corporate and Other Debt | ||
AFS securities | ||
AFS debt securities, Amortized cost | 14,596 | 15,437 |
AFS debt securities, Gross unrealized gains | 9 | 40 |
AFS debt securities, Gross unrealized losses | 246 | 137 |
AFS debt securities, Fair value | 14,359 | 15,340 |
AFS Debt Securities | Agency | ||
AFS securities | ||
AFS debt securities, Amortized cost | 1,906 | 2,288 |
AFS debt securities, Gross unrealized gains | 1 | 1 |
AFS debt securities, Gross unrealized losses | 60 | 76 |
AFS debt securities, Fair value | 1,847 | 2,213 |
AFS Debt Securities | Non-Agency | ||
AFS securities | ||
AFS debt securities, Amortized cost | 2,220 | 1,820 |
AFS debt securities, Gross unrealized gains | 3 | 11 |
AFS debt securities, Gross unrealized losses | 25 | 6 |
AFS debt securities, Fair value | 2,198 | 1,825 |
AFS Debt Securities | Auto Loan Asset-backed Securities | ||
AFS securities | ||
AFS debt securities, Amortized cost | 2,556 | 2,433 |
AFS debt securities, Gross unrealized gains | 0 | 0 |
AFS debt securities, Gross unrealized losses | 9 | 5 |
AFS debt securities, Fair value | 2,547 | 2,428 |
AFS Debt Securities | Corporate Bonds | ||
AFS securities | ||
AFS debt securities, Amortized cost | 3,780 | 3,640 |
AFS debt securities, Gross unrealized gains | 5 | 10 |
AFS debt securities, Gross unrealized losses | 30 | 22 |
AFS debt securities, Fair value | 3,755 | 3,628 |
AFS Debt Securities | Collateralized Loan Obligations | ||
AFS securities | ||
AFS debt securities, Amortized cost | 502 | 1,087 |
AFS debt securities, Gross unrealized gains | 0 | 0 |
AFS debt securities, Gross unrealized losses | 7 | 20 |
AFS debt securities, Fair value | 495 | 1,067 |
AFS Debt Securities | FFELP Student Loan Asset-backed Securities | ||
AFS securities | ||
AFS debt securities, Amortized cost | 3,632 | 4,169 |
AFS debt securities, Gross unrealized gains | 0 | 18 |
AFS debt securities, Gross unrealized losses | 115 | 8 |
AFS debt securities, Fair value | 3,517 | 4,179 |
AFS Equity Securities | ||
AFS securities | ||
AFS equity securities, Amortized cost | 15 | 15 |
AFS equity securities, Gross unrealized gains | 0 | 0 |
AFS equity securities, Gross unrealized losses | 8 | 4 |
AFS equity securities, Fair value | 7 | 11 |
HTM securities | ||
HTM securities: | ||
HTM - Amortized Cost | 5,224 | 100 |
HTM - Gross Unrealized Gains | 1 | 0 |
HTM - Gross Unrealized Losses | 37 | 0 |
HTM - Fair Value | 5,188 | 100 |
HTM securities | U.S. Treasury Securities | ||
HTM securities: | ||
HTM - Amortized Cost | 1,001 | 100 |
HTM - Gross Unrealized Gains | 0 | 0 |
HTM - Gross Unrealized Losses | 3 | 0 |
HTM - Fair Value | 998 | $ 100 |
HTM securities | U.S. Agency Securities | ||
HTM securities: | ||
HTM - Amortized Cost | 4,223 | |
HTM - Gross Unrealized Gains | 1 | |
HTM - Gross Unrealized Losses | 34 | |
HTM - Fair Value | $ 4,190 |
Investment Securities (Schedu76
Investment Securities (Schedule of Investment Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
HTM securities: | ||
Investment securities - Fair Value, Less than 12 Months | $ 54,185 | $ 19,370 |
Investment securities - Fair Value, 12 Months or Longer | 6,021 | 14,984 |
Investment securities - Fair Value | 60,206 | 34,354 |
Investment securities - Gross Unrealized Loss, Less than 12 Months | 481 | 44 |
Investment Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Loss | 109 | 236 |
Investment securities - Gross Unrealized Loss | 590 | 280 |
U.S. Agency Securities | ||
HTM securities: | ||
HTM - Fair Value, Less than 12 Months | 3,677 | |
HTM - Fair Value, 12 Months or Longer | 0 | |
HTM - Fair Value, Total | 3,677 | |
HTM - Gross Unrealized Losses, Less than 12 Months | 34 | |
HTM - Gross Unrealized Losses, 12 Months or Longer | 0 | |
HTM - Gross Unrealized Losses, Total | 34 | |
AFS securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS - Fair Value, Less than 12 Months | 49,610 | |
AFS - Fair Value, 12 Months or Longer | 6,021 | |
AFS - Fair Value, Total | 55,631 | |
AFS - Gross Unrealized Losses, Less than 12 Months | 444 | |
AFS - Gross Unrealized Losses, 12 Months or Longer | 109 | |
AFS - Gross Unrealized Losses, Total | 553 | |
AFS Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS - Fair Value, Less than 12 Months | 49,603 | 19,359 |
AFS - Fair Value, 12 Months or Longer | 6,021 | 14,984 |
AFS - Fair Value, Total | 55,624 | 34,343 |
AFS - Gross Unrealized Losses, Less than 12 Months | 436 | 40 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 109 | 236 |
AFS - Gross Unrealized Losses, Total | 545 | 276 |
AFS Debt Securities | U.S. Government and Agency Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS - Fair Value, Less than 12 Months | 40,236 | 14,149 |
AFS - Fair Value, 12 Months or Longer | 2,816 | 10,057 |
AFS - Fair Value, Total | 43,052 | 24,206 |
AFS - Gross Unrealized Losses, Less than 12 Months | 261 | 20 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 38 | 119 |
AFS - Gross Unrealized Losses, Total | 299 | 139 |
AFS Debt Securities | U.S. Treasury Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS - Fair Value, Less than 12 Months | 25,994 | 11,410 |
AFS - Fair Value, 12 Months or Longer | 2,177 | 5,924 |
AFS - Fair Value, Total | 28,171 | 17,334 |
AFS - Gross Unrealized Losses, Less than 12 Months | 126 | 14 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 17 | 53 |
AFS - Gross Unrealized Losses, Total | 143 | 67 |
AFS Debt Securities | U.S. Agency Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS - Fair Value, Less than 12 Months | 14,242 | 2,739 |
AFS - Fair Value, 12 Months or Longer | 639 | 4,133 |
AFS - Fair Value, Total | 14,881 | 6,872 |
AFS - Gross Unrealized Losses, Less than 12 Months | 135 | 6 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 21 | 66 |
AFS - Gross Unrealized Losses, Total | 156 | 72 |
AFS Debt Securities | Corporate and Other Debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS - Fair Value, Less than 12 Months | 9,367 | 5,210 |
AFS - Fair Value, 12 Months or Longer | 3,205 | 4,927 |
AFS - Fair Value, Total | 12,572 | 10,137 |
AFS - Gross Unrealized Losses, Less than 12 Months | 175 | 20 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 71 | 117 |
AFS - Gross Unrealized Losses, Total | 246 | 137 |
AFS Debt Securities | Agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS - Fair Value, Less than 12 Months | 1,185 | 42 |
AFS - Fair Value, 12 Months or Longer | 422 | 1,822 |
AFS - Fair Value, Total | 1,607 | 1,864 |
AFS - Gross Unrealized Losses, Less than 12 Months | 44 | 0 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 16 | 76 |
AFS - Gross Unrealized Losses, Total | 60 | 76 |
AFS Debt Securities | Non-Agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS - Fair Value, Less than 12 Months | 1,479 | 706 |
AFS - Fair Value, 12 Months or Longer | 305 | 346 |
AFS - Fair Value, Total | 1,784 | 1,052 |
AFS - Gross Unrealized Losses, Less than 12 Months | 21 | 3 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 4 | 3 |
AFS - Gross Unrealized Losses, Total | 25 | 6 |
AFS Debt Securities | Auto Loan Asset-backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS - Fair Value, Less than 12 Months | 1,644 | 2,034 |
AFS - Fair Value, 12 Months or Longer | 881 | 0 |
AFS - Fair Value, Total | 2,525 | 2,034 |
AFS - Gross Unrealized Losses, Less than 12 Months | 7 | 5 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 2 | 0 |
AFS - Gross Unrealized Losses, Total | 9 | 5 |
AFS Debt Securities | Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS - Fair Value, Less than 12 Months | 2,149 | 905 |
AFS - Fair Value, 12 Months or Longer | 525 | 1,299 |
AFS - Fair Value, Total | 2,674 | 2,204 |
AFS - Gross Unrealized Losses, Less than 12 Months | 19 | 6 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 11 | 16 |
AFS - Gross Unrealized Losses, Total | 30 | 22 |
AFS Debt Securities | Collateralized Loan Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS - Fair Value, Less than 12 Months | 352 | 0 |
AFS - Fair Value, 12 Months or Longer | 143 | 1,067 |
AFS - Fair Value, Total | 495 | 1,067 |
AFS - Gross Unrealized Losses, Less than 12 Months | 5 | 0 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 2 | 20 |
AFS - Gross Unrealized Losses, Total | 7 | 20 |
AFS Debt Securities | FFELP Student Loan Asset-backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS - Fair Value, Less than 12 Months | 2,558 | 1,523 |
AFS - Fair Value, 12 Months or Longer | 929 | 393 |
AFS - Fair Value, Total | 3,487 | 1,916 |
AFS - Gross Unrealized Losses, Less than 12 Months | 79 | 6 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 36 | 2 |
AFS - Gross Unrealized Losses, Total | 115 | 8 |
AFS Equity Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS - Fair Value, Less than 12 Months | 7 | 11 |
AFS - Fair Value, 12 Months or Longer | 0 | 0 |
AFS - Fair Value, Total | 7 | 11 |
AFS - Gross Unrealized Losses, Less than 12 Months | 8 | 4 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
AFS - Gross Unrealized Losses, Total | 8 | $ 4 |
HTM securities | ||
HTM securities: | ||
HTM - Fair Value, Less than 12 Months | 4,575 | |
HTM - Fair Value, 12 Months or Longer | 0 | |
HTM - Fair Value, Total | 4,575 | |
HTM - Gross Unrealized Losses, Less than 12 Months | 37 | |
HTM - Gross Unrealized Losses, 12 Months or Longer | 0 | |
HTM - Gross Unrealized Losses, Total | 37 | |
HTM securities | U.S. Treasury Securities | ||
HTM securities: | ||
HTM - Fair Value, Less than 12 Months | 898 | |
HTM - Fair Value, 12 Months or Longer | 0 | |
HTM - Fair Value, Total | 898 | |
HTM - Gross Unrealized Losses, Less than 12 Months | 3 | |
HTM - Gross Unrealized Losses, 12 Months or Longer | 0 | |
HTM - Gross Unrealized Losses, Total | 3 | |
HTM securities | U.S. Agency Securities | ||
HTM securities: | ||
HTM - Fair Value, Less than 12 Months | 3,677 | |
HTM - Fair Value, 12 Months or Longer | 0 | |
HTM - Fair Value, Total | 3,677 | |
HTM - Gross Unrealized Losses, Less than 12 Months | 34 | |
HTM - Gross Unrealized Losses, 12 Months or Longer | 0 | |
HTM - Gross Unrealized Losses, Total | $ 34 |
Investment Securities (Schedu77
Investment Securities (Schedule of Amortized Cost and Fair Value of Available for Sale Debt Securities by Contractual Date) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Amortized Cost | ||
Total Investment securities - Amortized Cost | $ 72,493 | $ 69,437 |
Fair Value | ||
Available-for-sale Securities, Total | 66,759 | 69,216 |
Investment securities, fair value | $ 71,947 | 69,316 |
Annualized Average Yield | ||
Total Investment securities, Annualized average yield | 1.30% | |
Available for sale Securitie | ||
Amortized Cost | ||
Available-for-sale Securities, Amortized Cost Basis, Total | $ 67,269 | 69,337 |
Fair Value | ||
Available-for-sale Securities, Total | $ 66,759 | 69,216 |
Annualized Average Yield | ||
Annualized average yield, total | 1.30% | |
AFS Debt Securities | ||
Amortized Cost | ||
AFS debt securities, amortized cost, total | $ 67,254 | 69,322 |
Fair Value | ||
AFS debt securities, Fair value, total | $ 66,752 | 69,205 |
Annualized Average Yield | ||
Annualized average yield, total | 1.30% | |
AFS Debt Securities | U.S. Government and Agency Securities | ||
Amortized Cost | ||
AFS debt securities, amortized cost, total | $ 52,658 | 53,885 |
Fair Value | ||
AFS debt securities, Fair value, total | $ 52,393 | 53,865 |
Annualized Average Yield | ||
Annualized average yield, total | 1.20% | |
AFS Debt Securities | U.S. Treasury Securities | ||
Amortized Cost | ||
AFS debt securities, amortized cost, due within 1 year | $ 6,209 | |
AFS debt securities, amortized cost, after 1 year through 5 years | 24,900 | |
AFS debt securities, Amortized cost, after 5 years through 10 years | 446 | |
AFS debt securities, amortized cost, total | 31,555 | 35,855 |
Fair Value | ||
AFS debt securities, due within 1 year | 6,205 | |
AFS debt securities, after 1 year through 5 years | 24,765 | |
AFS debt securities, after 5 years through 10 years | 447 | |
AFS debt securities, Fair value, total | $ 31,417 | 35,830 |
Annualized Average Yield | ||
Annualized average yield, due within 1 year | 0.70% | |
Annualized average yield, after 1 year through 5 years | 1.00% | |
Annualized average yield, after 5 years through 10 years | 2.10% | |
AFS Debt Securities | U.S. Agency Securities | ||
Amortized Cost | ||
AFS debt securities, amortized cost, after 1 year through 5 years | $ 2,986 | |
AFS debt securities, Amortized cost, after 5 years through 10 years | 1,652 | |
AFS debt securities, amortized cost, after 10 years | 16,465 | |
AFS debt securities, amortized cost, total | 21,103 | 18,030 |
Fair Value | ||
AFS debt securities, after 1 year through 5 years | 2,984 | |
AFS debt securities, after 5 years through 10 years | 1,650 | |
AFS debt securities, after 10 years | 16,342 | |
AFS debt securities, Fair value, total | $ 20,976 | 18,035 |
Annualized Average Yield | ||
Annualized average yield, after 1 year through 5 years | 0.60% | |
Annualized average yield, after 5 years through 10 years | 1.90% | |
Annualized average yield, after 10 years | 1.80% | |
AFS Debt Securities | Corporate and Other Debt | ||
Amortized Cost | ||
AFS debt securities, amortized cost, total | $ 14,596 | 15,437 |
Fair Value | ||
AFS debt securities, Fair value, total | $ 14,359 | 15,340 |
Annualized Average Yield | ||
Annualized average yield, total | 1.40% | |
AFS Debt Securities | Agency | ||
Amortized Cost | ||
AFS debt securities, amortized cost, due within 1 year | $ 49 | |
AFS debt securities, amortized cost, after 1 year through 5 years | 570 | |
AFS debt securities, Amortized cost, after 5 years through 10 years | 213 | |
AFS debt securities, amortized cost, after 10 years | 1,074 | |
AFS debt securities, amortized cost, total | 1,906 | 2,288 |
Fair Value | ||
AFS debt securities, due within 1 year | 50 | |
AFS debt securities, after 1 year through 5 years | 567 | |
AFS debt securities, after 5 years through 10 years | 209 | |
AFS debt securities, after 10 years | 1,021 | |
AFS debt securities, Fair value, total | $ 1,847 | 2,213 |
Annualized Average Yield | ||
Annualized average yield, due within 1 year | 0.70% | |
Annualized average yield, after 1 year through 5 years | 0.90% | |
Annualized average yield, after 5 years through 10 years | 1.50% | |
Annualized average yield, after 10 years | 1.50% | |
AFS Debt Securities | Non-Agency | ||
Amortized Cost | ||
AFS debt securities, amortized cost, after 10 years | $ 2,220 | |
AFS debt securities, amortized cost, total | 2,220 | 1,820 |
Fair Value | ||
AFS debt securities, after 10 years | 2,198 | |
AFS debt securities, Fair value, total | $ 2,198 | 1,825 |
Annualized Average Yield | ||
Annualized average yield, after 10 years | 1.90% | |
AFS Debt Securities | Auto Loan Asset-backed Securities | ||
Amortized Cost | ||
AFS debt securities, amortized cost, due within 1 year | $ 64 | |
AFS debt securities, amortized cost, after 1 year through 5 years | 2,302 | |
AFS debt securities, Amortized cost, after 5 years through 10 years | 190 | |
AFS debt securities, amortized cost, total | 2,556 | 2,433 |
Fair Value | ||
AFS debt securities, due within 1 year | 64 | |
AFS debt securities, after 1 year through 5 years | 2,294 | |
AFS debt securities, after 5 years through 10 years | 189 | |
AFS debt securities, Fair value, total | $ 2,547 | 2,428 |
Annualized Average Yield | ||
Annualized average yield, due within 1 year | 0.90% | |
Annualized average yield, after 1 year through 5 years | 1.20% | |
Annualized average yield, after 5 years through 10 years | 1.70% | |
AFS Debt Securities | Corporate Bonds | ||
Amortized Cost | ||
AFS debt securities, amortized cost, due within 1 year | $ 412 | |
AFS debt securities, amortized cost, after 1 year through 5 years | 2,615 | |
AFS debt securities, Amortized cost, after 5 years through 10 years | 753 | |
AFS debt securities, amortized cost, total | 3,780 | 3,640 |
Fair Value | ||
AFS debt securities, due within 1 year | 412 | |
AFS debt securities, after 1 year through 5 years | 2,595 | |
AFS debt securities, after 5 years through 10 years | 748 | |
AFS debt securities, Fair value, total | $ 3,755 | 3,628 |
Annualized Average Yield | ||
Annualized average yield, due within 1 year | 1.10% | |
Annualized average yield, after 1 year through 5 years | 1.60% | |
Annualized average yield, after 5 years through 10 years | 2.70% | |
AFS Debt Securities | Collateralized Loan Obligations | ||
Amortized Cost | ||
AFS debt securities, Amortized cost, after 5 years through 10 years | $ 502 | |
AFS debt securities, amortized cost, total | 502 | 1,087 |
Fair Value | ||
AFS debt securities, after 5 years through 10 years | 495 | |
AFS debt securities, Fair value, total | $ 495 | 1,067 |
Annualized Average Yield | ||
Annualized average yield, after 5 years through 10 years | 1.50% | |
AFS Debt Securities | FFELP Student Loan Asset-backed Securities | ||
Amortized Cost | ||
AFS debt securities, amortized cost, after 1 year through 5 years | $ 88 | |
AFS debt securities, Amortized cost, after 5 years through 10 years | 776 | |
AFS debt securities, amortized cost, after 10 years | 2,768 | |
AFS debt securities, amortized cost, total | 3,632 | 4,169 |
Fair Value | ||
AFS debt securities, after 1 year through 5 years | 88 | |
AFS debt securities, after 5 years through 10 years | 759 | |
AFS debt securities, after 10 years | 2,670 | |
AFS debt securities, Fair value, total | $ 3,517 | 4,179 |
Annualized Average Yield | ||
Annualized average yield, after 1 year through 5 years | 0.60% | |
Annualized average yield, after 5 years through 10 years | 0.90% | |
Annualized average yield, after 10 years | 0.90% | |
AFS Equity Securities | ||
Amortized Cost | ||
AFS equity securities, Amortized cost | $ 15 | 15 |
Fair Value | ||
AFS equity securities, Fair value | $ 7 | $ 11 |
Annualized Average Yield | ||
Annualized average yield, total | 0.00% | |
HTM securities | ||
Amortized Cost | ||
HTM securities, amortized cost, total | $ 5,224 | |
Fair Value | ||
HTM securities, Fair value, total | $ 5,188 | |
Annualized Average Yield | ||
HTM securities, Annualized average yield, total | 2.10% | |
HTM securities | U.S. Treasury Securities | ||
Amortized Cost | ||
HTM securities, amortized cost, after 1 year through 5 years | $ 1,001 | |
HTM securities, amortized cost, total | 1,001 | |
Fair Value | ||
HTM securities, after 1 year through 5 years | 998 | |
HTM securities, Fair value, total | $ 998 | |
Annualized Average Yield | ||
HTM securities, Annualized average yield, after 1 years through 5 years | 1.00% | |
HTM securities | U.S. Agency Securities | ||
Amortized Cost | ||
HTM securities, amortized cost, after 10 years | $ 4,223 | |
HTM securities, amortized cost, total | 4,223 | |
Fair Value | ||
HTM securities, after 10 years | 4,190 | |
HTM securities, Fair value, total | $ 4,190 | |
Annualized Average Yield | ||
HTM securities, Annualized average yield, after 10 year | 2.30% |
Investment Securities (Schedu78
Investment Securities (Schedule of Gross Realized Gains and Gross Realized (Losses) on Sales of AFS Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Available-for-sale Securities [Abstract] | |||
Gross realized gains | $ 116 | $ 41 | $ 49 |
Gross realized (losses) | (32) | (1) | (4) |
Total | $ 84 | $ 40 | $ 45 |
Collateralized Transactions (Na
Collateralized Transactions (Narrative) (Details) - USD ($) $ in Billions | Dec. 31, 2015 | Dec. 31, 2014 |
Collateralized Agreements | ||
Customer margin loans outstanding | $ 25.3 | $ 29 |
Fair value of financial instruments received as collateral where the Company is permitted to sell or repledge the securities | 522.6 | 545.7 |
Fair value of financial instruments received as collateral where the Company has sold or repledged | $ 398.1 | $ 403.4 |
Financial instruments, percentage of total assets | 7.00% | 7.00% |
Securities collateral, percentage of total assets | 15.00% | 17.00% |
Trading assets | $ 35 | $ 31.3 |
Collateralized Transactions (Ba
Collateralized Transactions (Balance Sheet Offsetting) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Federal Funds Sold and Securities Purchased under Agreements to Resell | ||
Gross amount | $ 135,714 | $ 148,234 |
Amounts offset in the Consolidated Statements of Financial Condition | (48,057) | (64,946) |
Net amount presented in the Consolidated Statements of Financial Condition | 87,657 | 83,288 |
Financial instruments not offset in the Consolidated Statements of Financial Condition | (84,752) | (79,343) |
Net exposure | 2,905 | 3,945 |
Securities Borrowed | ||
Gross amount | 147,445 | 145,556 |
Amounts offset in the Consolidated Statements of Financial Condition | (5,029) | (8,848) |
Net amount presented in the Consolidated Statements of Financial Condition | 142,416 | 136,708 |
Financial instruments not offset in the Consolidated Statements of Financial Condition | (134,250) | (128,282) |
Net exposure | 8,166 | 8,426 |
Securities Sold under Agreements to Repurchase | ||
Gross amount | 84,749 | 134,895 |
Amounts offset in the Consolidated Statements of Financial Condition | (48,057) | (64,946) |
Net amount presented in the Consolidated Statements of Financial Condition | 36,692 | 69,949 |
Financial instruments not offset in the Consolidated Statements of Financial Condition | (31,604) | (56,454) |
Net exposure | 5,088 | 13,495 |
Securities Loaned | ||
Gross amount | 24,387 | 34,067 |
Amounts offset in the Consolidated Statements of Financial Condition | (5,029) | (8,848) |
Net amount presented in the Consolidated Statements of Financial Condition | 19,358 | 25,219 |
Financial instruments not offset in the Consolidated Statements of Financial Condition | (18,881) | (24,252) |
Net exposure | 477 | 967 |
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 | 2,600 | 3,900 |
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 | 3,000 | 4,200 |
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 | 4,900 | 15,600 |
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 | $ 0 | $ 700 |
Collateralized Transactions (Se
Collateralized Transactions (Secured Financing Transactions) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | $ 84,749 | $ 134,895 |
Securities loaned | 24,387 | 34,067 |
Gross amount of secured financing included in the above offseting disclosure | 109,136 | |
Obligation to return securities received as collateral | 19,316 | $ 25,685 |
Total | 128,452 | |
U.S. Government and Agency Securities | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 36,609 | |
State And Municipal Securities | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 173 | |
Other Sovereign Government Obligations | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 24,820 | |
Securities loaned | 7,336 | |
Asset-backed Securities | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 441 | |
Corporate and Other Debt | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 4,020 | |
Securities loaned | 71 | |
Obligation to return securities received as collateral | 3 | |
Corporate Equities | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 18,473 | |
Securities loaned | 16,972 | |
Obligation to return securities received as collateral | 19,313 | |
Other | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 213 | |
Securities loaned | 8 | |
Overnight and Open | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 20,410 | |
Securities loaned | 12,247 | |
Gross amount of secured financing included in the above offseting disclosure | 32,657 | |
Obligation to return securities received as collateral | 19,316 | |
Total | 51,973 | |
Less than 30 days | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 25,245 | |
Securities loaned | 478 | |
Gross amount of secured financing included in the above offseting disclosure | 25,723 | |
Obligation to return securities received as collateral | 0 | |
Total | 25,723 | |
30-90 days | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 13,221 | |
Securities loaned | 2,156 | |
Gross amount of secured financing included in the above offseting disclosure | 15,377 | |
Obligation to return securities received as collateral | 0 | |
Total | 15,377 | |
Over 90 days | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 25,873 | |
Securities loaned | 9,506 | |
Gross amount of secured financing included in the above offseting disclosure | 35,379 | |
Obligation to return securities received as collateral | 0 | |
Total | $ 35,379 |
Collateralized Transactions (Ca
Collateralized Transactions (Cash And Securities Deposited With Clearing Organizations Or Segregated Under Federal And Other Regulations Or Requirements) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Collateralized Transactions | ||
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | $ 31,469 | $ 40,607 |
Securities | 14,390 | 14,630 |
Total | 45,859 | $ 55,237 |
Cash Initial Margin Received From Customers And Remitted To Clearing Organizations | $ 3,800 |
Loans and Allowance for Credi83
Loans and Allowance for Credit Losses (Outstanding Loans and Credit Quality) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Loans Held for Investments | |||
Loans held for investments, gross | $ 72,784 | $ 57,268 | |
Allowance for loan losses | (225) | (149) | $ (156) |
Loans held for investment, net | 72,559 | 57,119 | |
Loans Held for Sale | |||
Loans held for sale, gross | 13,200 | 9,458 | |
Loans held for sale, net | 13,200 | 9,458 | |
Total Loans | |||
Total loans, gross | 85,984 | 66,726 | |
Allowance for loan losses | (225) | (149) | |
Total loans, net | 85,759 | 66,577 | |
Total loans, net of allowance, made to foreign borrowers | 9,789 | 7,017 | |
Loans at fixed interest rate | 8,471 | 6,663 | |
Loans at floating or adjustable interest rate | 77,288 | 59,914 | |
Pass | |||
Loans Held for Investments | |||
Loans held for investments, gross | 71,235 | 55,409 | |
Special Mention | |||
Loans Held for Investments | |||
Loans held for investments, gross | 300 | 1,683 | |
Substandard | |||
Loans Held for Investments | |||
Loans held for investments, gross | 1,237 | 174 | |
Doubtful | |||
Loans Held for Investments | |||
Loans held for investments, gross | 12 | 2 | |
Corporate | |||
Loans Held for Investments | |||
Loans held for investments, gross | 23,554 | 19,659 | |
Allowance for loan losses | (166) | (118) | (137) |
Loans Held for Sale | |||
Loans held for sale, gross | 11,924 | 8,200 | |
Total Loans | |||
Total loans, gross | 35,478 | 27,859 | |
Corporate | Pass | |||
Loans Held for Investments | |||
Loans held for investments, gross | 22,040 | 17,847 | |
Corporate | Special Mention | |||
Loans Held for Investments | |||
Loans held for investments, gross | 300 | 1,683 | |
Corporate | Substandard | |||
Loans Held for Investments | |||
Loans held for investments, gross | 1,202 | 127 | |
Corporate | Doubtful | |||
Loans Held for Investments | |||
Loans held for investments, gross | 12 | 2 | |
Consumer | |||
Loans Held for Investments | |||
Loans held for investments, gross | 21,528 | 16,576 | |
Allowance for loan losses | (5) | (2) | (1) |
Loans Held for Sale | |||
Loans held for sale, gross | 0 | 0 | |
Total Loans | |||
Total loans, gross | 21,528 | 16,576 | |
Consumer | Pass | |||
Loans Held for Investments | |||
Loans held for investments, gross | 21,528 | 16,576 | |
Consumer | Special Mention | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Consumer | Substandard | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Consumer | Doubtful | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Residential Real Estate | |||
Loans Held for Investments | |||
Loans held for investments, gross | 20,863 | 15,735 | |
Allowance for loan losses | (17) | (8) | (4) |
Loans Held for Sale | |||
Loans held for sale, gross | 104 | 114 | |
Total Loans | |||
Total loans, gross | 20,967 | 15,849 | |
Residential Real Estate | Pass | |||
Loans Held for Investments | |||
Loans held for investments, gross | 20,828 | 15,688 | |
Residential Real Estate | Special Mention | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Residential Real Estate | Substandard | |||
Loans Held for Investments | |||
Loans held for investments, gross | 35 | 47 | |
Residential Real Estate | Doubtful | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Wholesale Real Estate | |||
Loans Held for Investments | |||
Loans held for investments, gross | 6,839 | 5,298 | |
Allowance for loan losses | (37) | (21) | $ (14) |
Loans Held for Sale | |||
Loans held for sale, gross | 1,172 | 1,144 | |
Total Loans | |||
Total loans, gross | 8,011 | 6,442 | |
Wholesale Real Estate | Pass | |||
Loans Held for Investments | |||
Loans held for investments, gross | 6,839 | 5,298 | |
Wholesale Real Estate | Special Mention | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Wholesale Real Estate | Substandard | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Wholesale Real Estate | Doubtful | |||
Loans Held for Investments | |||
Loans held for investments, gross | $ 0 | $ 0 |
Loans and Allowance for Credi84
Loans and Allowance for Credit Losses (Impaired Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Impaired Loans | |||
Impaired loans with allowance | $ 39 | $ 0 | |
Impaired loans without allowance | 106 | 19 | |
Impaired loans unpaid principal balance | 149 | 19 | |
Impaired loans | 145 | 19 | |
Past due 90 days loans and on nonaccrual | 22 | 27 | |
Allowance | 225 | 149 | $ 156 |
Americas | |||
Impaired Loans | |||
Impaired loans | 108 | 19 | |
Past due 90 days loans and on nonaccrual | 22 | 27 | |
Allowance | 183 | 121 | |
EMEA | |||
Impaired Loans | |||
Impaired loans | 12 | 0 | |
Past due 90 days loans and on nonaccrual | 0 | 0 | |
Allowance | 34 | 20 | |
Asia-Pacific | |||
Impaired Loans | |||
Impaired loans | 25 | 0 | |
Past due 90 days loans and on nonaccrual | 0 | 0 | |
Allowance | 8 | 8 | |
Corporate | |||
Impaired Loans | |||
Impaired loans with allowance | 39 | 0 | |
Impaired loans without allowance | 89 | 2 | |
Impaired loans unpaid principal balance | 130 | 2 | |
Past due 90 days loans and on nonaccrual | 1 | 2 | |
Allowance | 166 | 118 | 137 |
Troubled Debt Restructuring | |||
Impaired loans include TDRs | 44 | ||
Lending commitments include TDRs | 34.8 | ||
Troubled debt restructurings allowance | 5.1 | ||
Consumer | |||
Impaired Loans | |||
Allowance | 5 | 2 | 1 |
Residential Real Estate | |||
Impaired Loans | |||
Impaired loans with allowance | 0 | 0 | |
Impaired loans without allowance | 17 | 17 | |
Impaired loans unpaid principal balance | 19 | 17 | |
Past due 90 days loans and on nonaccrual | 21 | 25 | |
Allowance | 17 | 8 | 4 |
Wholesale Real Estate | |||
Impaired Loans | |||
Allowance | $ 37 | $ 21 | $ 14 |
Loans and Allowance for Credi85
Loans and Allowance for Credit Losses (Loans and Lending-related Commitments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for loan losses rollforward | ||
Beginning balance | $ 149 | $ 156 |
Gross charge-offs | (1) | (6) |
Gross recoveries | 1 | 1 |
Net charge-offs | 0 | (5) |
Provision for loan losses | 87 | 1 |
Other | (11) | (3) |
Ending balance | 225 | 149 |
Loans, additional information | ||
Allowance, inherent | 215 | 149 |
Allowance, specific | 10 | 0 |
Loans, inherent | 72,639 | 57,249 |
Loans, specific | 145 | 19 |
Total Loans | 72,784 | 57,268 |
Allowance for lending-related commitments rollforward | ||
Beginning balance | 149 | 127 |
Provision for lending-related commitments | 36 | 22 |
Ending balance | 185 | 149 |
Lending-related commitments, additional information | ||
Allowance, inherent | 178 | 149 |
Allowance, specific | 7 | 0 |
Lending-related commitments, inherent | 69,422 | 70,121 |
Lending-related commitments, specific | 126 | 26 |
Total lending-related commitments evaluated for impairment | 69,548 | 70,147 |
Corporate | ||
Allowance for loan losses rollforward | ||
Beginning balance | 118 | 137 |
Gross charge-offs | 0 | (3) |
Gross recoveries | 1 | 0 |
Net charge-offs | 1 | (3) |
Provision for loan losses | 58 | (13) |
Other | (11) | (3) |
Ending balance | 166 | 118 |
Loans, additional information | ||
Allowance, inherent | 156 | 118 |
Allowance, specific | 10 | 0 |
Loans, inherent | 23,426 | 19,657 |
Loans, specific | 128 | 2 |
Total Loans | 23,554 | 19,659 |
Allowance for lending-related commitments rollforward | ||
Beginning balance | 147 | 125 |
Provision for lending-related commitments | 33 | 22 |
Ending balance | 180 | 147 |
Lending-related commitments, additional information | ||
Allowance, inherent | 173 | 147 |
Allowance, specific | 7 | 0 |
Lending-related commitments, inherent | 63,873 | 65,987 |
Lending-related commitments, specific | 126 | 26 |
Total lending-related commitments evaluated for impairment | 63,999 | 66,013 |
Consumer | ||
Allowance for loan losses rollforward | ||
Beginning balance | 2 | 1 |
Gross charge-offs | 0 | 0 |
Gross recoveries | 0 | 0 |
Net charge-offs | 0 | 0 |
Provision for loan losses | 3 | 1 |
Other | 0 | 0 |
Ending balance | 5 | 2 |
Loans, additional information | ||
Allowance, inherent | 5 | 2 |
Allowance, specific | 0 | 0 |
Loans, inherent | 21,528 | 16,576 |
Loans, specific | 0 | 0 |
Total Loans | 21,528 | 16,576 |
Allowance for lending-related commitments rollforward | ||
Beginning balance | 0 | 0 |
Provision for lending-related commitments | 1 | 0 |
Ending balance | 1 | 0 |
Lending-related commitments, additional information | ||
Allowance, inherent | 1 | 0 |
Allowance, specific | 0 | 0 |
Lending-related commitments, inherent | 4,856 | 3,484 |
Lending-related commitments, specific | 0 | 0 |
Total lending-related commitments evaluated for impairment | 4,856 | 3,484 |
Residential Real Estate | ||
Allowance for loan losses rollforward | ||
Beginning balance | 8 | 4 |
Gross charge-offs | (1) | 0 |
Gross recoveries | 0 | 0 |
Net charge-offs | (1) | 0 |
Provision for loan losses | 10 | 4 |
Other | 0 | 0 |
Ending balance | 17 | 8 |
Loans, additional information | ||
Allowance, inherent | 17 | 8 |
Allowance, specific | 0 | 0 |
Loans, inherent | 20,846 | 15,718 |
Loans, specific | 17 | 17 |
Total Loans | 20,863 | 15,735 |
Allowance for lending-related commitments rollforward | ||
Beginning balance | 0 | 0 |
Provision for lending-related commitments | 0 | 0 |
Ending balance | 0 | 0 |
Lending-related commitments, additional information | ||
Allowance, inherent | 0 | 0 |
Allowance, specific | 0 | 0 |
Lending-related commitments, inherent | 312 | 283 |
Lending-related commitments, specific | 0 | 0 |
Total lending-related commitments evaluated for impairment | 312 | 283 |
Wholesale Real Estate | ||
Allowance for loan losses rollforward | ||
Beginning balance | 21 | 14 |
Gross charge-offs | 0 | (3) |
Gross recoveries | 0 | 1 |
Net charge-offs | 0 | (2) |
Provision for loan losses | 16 | 9 |
Other | 0 | 0 |
Ending balance | 37 | 21 |
Loans, additional information | ||
Allowance, inherent | 37 | 21 |
Allowance, specific | 0 | 0 |
Loans, inherent | 6,839 | 5,298 |
Loans, specific | 0 | 0 |
Total Loans | 6,839 | 5,298 |
Allowance for lending-related commitments rollforward | ||
Beginning balance | 2 | 2 |
Provision for lending-related commitments | 2 | 0 |
Ending balance | 4 | 2 |
Lending-related commitments, additional information | ||
Allowance, inherent | 4 | 2 |
Allowance, specific | 0 | 0 |
Lending-related commitments, inherent | 381 | 367 |
Lending-related commitments, specific | 0 | 0 |
Total lending-related commitments evaluated for impairment | $ 381 | $ 367 |
Loans and Allowance for Credi86
Loans and Allowance for Credit Losses (Employee Loans) (Details) - Employee Retainment and Recruitment Program - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Loans | ||
Employee loans outstanding | $ 4,923 | $ 5,130 |
Allowance for employee loans | $ 108 | $ 116 |
Minimum | ||
Employee Loans | ||
Employee loan repayment terms | 2 years | |
Maximum | ||
Employee Loans | ||
Employee loan repayment terms | 12 years |
Equity Method Investments (Narr
Equity Method Investments (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Method Investments | |||
Equity method investment | $ 3,144 | $ 3,332 | |
Income (loss) from equity method investments | 114 | 156 | $ 451 |
Dividends paid | 1,455 | 904 | 475 |
MUMSS | |||
Equity Method Investments | |||
Equity method investment | 1,457 | 1,415 | |
Income (loss) from equity method investments | $ 220 | 224 | $ 570 |
Voting interest held by noncontrolling interest | 40.00% | ||
Dividends paid | $ 424 | 594 | |
Dividends received from equity method investment | $ 170 | $ 238 | |
MUMSS | MUFG | |||
Equity Method Investments | |||
Voting interest held by noncontrolling interest | 60.00% |
Equity Method Investments (Inve
Equity Method Investments (Investees) (Details) - MUMSS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Total assets | $ 135,398 | $ 111,053 | |
Total liabilities | 132,492 | 108,263 | |
Noncontrolling interests | 29 | 37 | |
Net revenues | 2,961 | 2,961 | $ 3,305 |
Income (loss) from continuing operations before income taxes | 845 | 908 | 1,325 |
Net income (loss) | 589 | 595 | 1,459 |
Net income (loss) applicable to equity method investee | $ 565 | $ 582 | $ 1,441 |
Goodwill and Net Intangible A89
Goodwill and Net Intangible Assets (Narrative) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Goodwill and Net Intangible Assets | |
Estimated amortization expense associated with intangible assets in Year 1 | $ 294 |
Estimated amortization expense associated with intangible assets in Year 2 | 294 |
Estimated amortization expense associated with intangible assets in Year 3 | 294 |
Estimated amortization expense associated with intangible assets in Year 4 | 294 |
Estimated amortization expense associated with intangible assets in Year 5 | $ 294 |
Goodwill and Net Intangible A90
Goodwill and Net Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill Roll Forward | ||
Beginning Balance | $ 6,588 | $ 6,595 |
Foreign currency translation adjustments and other | (15) | (14) |
Goodwill acquired during the period | 11 | 7 |
Ending Balance | 6,584 | 6,588 |
Goodwill, Impaired, Accumulated Impairment Loss | ||
Goodwill, accumulated impairments | 700 | |
Goodwill before accumulated impairments | 7,284 | 7,288 |
Institutional Securities | ||
Goodwill Roll Forward | ||
Beginning Balance | 286 | 293 |
Foreign currency translation adjustments and other | (15) | (14) |
Goodwill acquired during the period | 11 | 7 |
Ending Balance | 282 | 286 |
Goodwill, Impaired, Accumulated Impairment Loss | ||
Goodwill, accumulated impairments | 673 | |
Wealth Management | ||
Goodwill Roll Forward | ||
Beginning Balance | 5,533 | 5,533 |
Foreign currency translation adjustments and other | 0 | 0 |
Goodwill acquired during the period | 0 | 0 |
Ending Balance | 5,533 | 5,533 |
Investment Management | ||
Goodwill Roll Forward | ||
Beginning Balance | 769 | 769 |
Foreign currency translation adjustments and other | 0 | 0 |
Goodwill acquired during the period | 0 | 0 |
Ending Balance | 769 | $ 769 |
Goodwill, Impaired, Accumulated Impairment Loss | ||
Goodwill, accumulated impairments | $ 27 |
Goodwill and Net Intangible A91
Goodwill and Net Intangible Assets (Changes in Carrying Amount of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets | |||
Amortizable net intangible assets, beginning balance | $ 3,153 | $ 3,278 | |
Intangible assets disposed of during the period | (4) | ||
Intangible assets acquired during the period | 160 | 182 | |
Amortization expense | (306) | (297) | |
Impairment losses | (28) | (6) | |
Amortizable net intangible assets, ending balance | 2,979 | 3,153 | |
Mortgage servicing rights | 5 | 6 | $ 8 |
Net intangible assets | 2,984 | 3,159 | 3,286 |
Net increase in Intangible assets | 159 | ||
Gain on sale of intangible assets | 78 | ||
Institutional Securities | |||
Intangible Assets | |||
Amortizable net intangible assets, beginning balance | 221 | 56 | |
Intangible assets disposed of during the period | (4) | ||
Intangible assets acquired during the period | 160 | 182 | |
Amortization expense | (26) | (13) | |
Impairment losses | (28) | 0 | |
Amortizable net intangible assets, ending balance | 327 | 221 | |
Mortgage servicing rights | 0 | 0 | 0 |
Net intangible assets | 327 | 221 | 56 |
Wealth Management | |||
Intangible Assets | |||
Amortizable net intangible assets, beginning balance | 2,905 | 3,182 | |
Intangible assets disposed of during the period | 0 | ||
Intangible assets acquired during the period | 0 | 0 | |
Amortization expense | (273) | (274) | |
Impairment losses | 0 | (3) | |
Amortizable net intangible assets, ending balance | 2,632 | 2,905 | |
Mortgage servicing rights | 5 | 6 | 8 |
Net intangible assets | 2,637 | 2,911 | 3,190 |
Investment Management | |||
Intangible Assets | |||
Amortizable net intangible assets, beginning balance | 27 | 40 | |
Intangible assets disposed of during the period | 0 | ||
Intangible assets acquired during the period | 0 | 0 | |
Amortization expense | (7) | (10) | |
Impairment losses | 0 | (3) | |
Amortizable net intangible assets, ending balance | 20 | 27 | |
Mortgage servicing rights | 0 | 0 | 0 |
Net intangible assets | $ 20 | $ 27 | $ 40 |
Goodwill and Net Intangible A92
Goodwill and Net Intangible Assets (Amortizable Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Amortizable Intangible Assets | ||
Gross Carrying Amount | $ 5,109 | $ 4,977 |
Accumulated Amortization | 2,130 | 1,824 |
Trademarks | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 1 | 7 |
Accumulated Amortization | 0 | 6 |
Tradename | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 280 | 280 |
Accumulated Amortization | 31 | 21 |
Customer Relationships | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 4,059 | 4,048 |
Accumulated Amortization | 1,686 | 1,430 |
Management Contracts | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 478 | 268 |
Accumulated Amortization | 250 | 170 |
Other | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 291 | 374 |
Accumulated Amortization | $ 163 | $ 197 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Jun. 28, 2013 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | |
Deposits [Abstract] | ||||
Savings and demand deposits | $ 153,346 | $ 132,159 | ||
Time deposits | 2,688 | 1,385 | ||
Total | 156,034 | 133,544 | ||
Maturities of Interest-bearing Deposits | ||||
Saving deposits payable upon demand | 153,338 | |||
Time deposits maturing in 2016 | 2,599 | |||
Time deposits maturing in 2017 | 59 | |||
Time deposits maturing in 2018 | 9 | |||
Time Deposits At Or Above FDIC Insurance Limit | 14 | 2 | ||
Deposits subject to FDIC | 113,000 | $ 99,000 | ||
Wealth Management JV | ||||
Noncontrolling Interest | ||||
Purchase of noncontrolling interests, percent | 35.00% | 35.00% | ||
Wealth Management JV | Citi | ||||
Noncontrolling Interest | ||||
Transfer of deposits from joint venture partners | $ 8,700 |
Borrowings and Other Secured 94
Borrowings and Other Secured Financings (Other Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Long-term Borrowings | |||
Notes issued, principal amount | $ 34,200 | $ 36,700 | |
Notes matured or retired | $ 27,300 | $ 33,100 | |
Weighted average maturity of long-term borrowings | 5 years 11 months | 5 years 11 months | |
Other Disclosures | |||
Subordinated debt | $ 10,404 | $ 8,339 | |
Junior subordinated debentures | $ 2,870 | $ 4,868 | |
Weighted average coupon at period-end | 4.00% | 4.20% | 4.40% |
Effective average borrowing rate for long-term borrowings after swaps at period-end | 2.10% | 2.30% | 2.20% |
Increase (Decrease) to carrying amount of long-term borrowings for which fair value option was elected | $ (500) | ||
Debt containing provisions that effectively allow the holders to put or extend the notes | 2,902 | $ 2,175 | |
Debt agreement entered by subsidiaries, which allow holder to put | 650 | $ 551 | |
Fair Value Hedges | |||
Other Disclosures | |||
Increase (Decrease) to carrying amount of long-term borrowings for which fair value option was elected | $ 2,700 | ||
Subordinated and Junior Subordinated Debt | |||
Other Disclosures | |||
Start year of maturities | 2,022 | ||
Latest year of maturities | 2,067 | ||
Subordinated Debt | |||
Long-term Borrowings | |||
Weighted average coupon | 4.45% | 4.57% | |
Other Disclosures | |||
Subordinated debt | $ 10,404 | $ 8,339 | |
Junior Subordinated Debentures | |||
Long-term Borrowings | |||
Weighted average coupon | 6.22% | 6.37% | |
Other Disclosures | |||
Junior subordinated debentures | $ 2,870 | $ 4,868 | |
Latest year of maturities | 2,052 |
Borrowings and Other Secured 95
Borrowings and Other Secured Financings (Short-term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Borrowings | ||
Short-term borrowings | $ 2,173 | $ 2,261 |
Average balance | $ 2,187 | $ 1,923 |
Borrowings and Other Secured 96
Borrowings and Other Secured Financings (Long-term Borrowings Maturities and Terms) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Maturities and Terms | |||
Due in 2015 | $ 0 | $ 20,740 | |
Due in 2016 | 22,396 | 20,643 | |
Due in 2017 | 22,266 | 24,000 | |
Due in 2018 | 17,937 | 17,679 | |
Due in 2019 | 18,568 | 17,571 | |
Due in 2020 | 17,005 | 8,190 | |
Thereafter | 55,596 | 43,949 | |
Total | $ 153,768 | $ 152,772 | |
Weighted average coupon at period-end | 4.00% | 4.20% | 4.40% |
Increase (Decrease) to carrying amount of long-term borrowings for which fair value option was elected | $ (500) | ||
Fair Value Hedges | |||
Maturities and Terms | |||
Due in 2016 | 100 | ||
Due in 2017 | 500 | ||
Due in 2018 | 300 | ||
Due in 2019 | 500 | ||
Due in 2020 | 400 | ||
Thereafter | 900 | ||
Increase (Decrease) to carrying amount of long-term borrowings for which fair value option was elected | 2,700 | ||
Parent Company | |||
Maturities and Terms | |||
Total | 144,091 | $ 143,741 | |
Parent Company | Fixed Rate | |||
Maturities and Terms | |||
Due in 2015 | 0 | ||
Due in 2016 | 9,883 | ||
Due in 2017 | 14,550 | ||
Due in 2018 | 13,118 | ||
Due in 2019 | 11,219 | ||
Due in 2020 | 11,289 | ||
Thereafter | 45,173 | ||
Total | $ 105,232 | ||
Weighted average coupon at period-end | 4.50% | ||
Parent Company | Variable Rate | |||
Maturities and Terms | |||
Due in 2015 | $ 0 | ||
Due in 2016 | 8,227 | ||
Due in 2017 | 6,611 | ||
Due in 2018 | 3,981 | ||
Due in 2019 | 6,740 | ||
Due in 2020 | 4,713 | ||
Thereafter | 8,586 | ||
Total | $ 38,858 | ||
Weighted average coupon at period-end | 1.00% | ||
Subsidiaries | Fixed Rate | |||
Maturities and Terms | |||
Due in 2015 | $ 0 | ||
Due in 2016 | 24 | ||
Due in 2017 | 13 | ||
Due in 2018 | 15 | ||
Due in 2019 | 47 | ||
Due in 2020 | 14 | ||
Thereafter | 308 | ||
Total | $ 421 | ||
Weighted average coupon at period-end | 6.10% | ||
Subsidiaries | Variable Rate | |||
Maturities and Terms | |||
Due in 2015 | $ 0 | ||
Due in 2016 | 4,262 | ||
Due in 2017 | 1,092 | ||
Due in 2018 | 823 | ||
Due in 2019 | 562 | ||
Due in 2020 | 989 | ||
Thereafter | 1,529 | ||
Total | $ 9,257 |
Borrowings and Other Secured 97
Borrowings and Other Secured Financings (Components of Long-term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Components of Long-term Borrowings | ||
Senior debt | $ 140,494 | $ 139,565 |
Subordinated debt | 10,404 | 8,339 |
Junior subordinated debentures | 2,870 | 4,868 |
Total | $ 153,768 | $ 152,772 |
Borrowings and Other Secured 98
Borrowings and Other Secured Financings (Effective Average Borrowing Rate) (Details) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Borrowings and Other Secured Financings | |||
Weighted average coupon at period-end | 4.00% | 4.20% | 4.40% |
Effective average borrowing rate for long-term borrowings after swaps at period-end | 2.10% | 2.30% | 2.20% |
Borrowings and Other Secured 99
Borrowings and Other Secured Financings (Other Secured Financings) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Borrowings | ||
Secured financings with original maturities greater than one year | $ 7,629 | $ 10,346 |
Secured financings with original maturities one year or less | 1,435 | 1,395 |
Failed sales | 400 | 344 |
Total other secured financings | $ 9,464 | 12,085 |
Morgan Stanley Capital Trust VI | ||
Capital Securities Redemption | ||
Capital Securities Interest Rate Stated Percentage | 6.60% | |
Morgan Stanley Capital Trust VII | ||
Capital Securities Redemption | ||
Capital Securities Interest Rate Stated Percentage | 6.60% | |
Fixed Rate | ||
Long-term Borrowings | ||
Secured financings with original maturities one year or less | $ 34 | 96 |
Variable Rate | ||
Long-term Borrowings | ||
Secured financings with original maturities one year or less | $ 1,401 | $ 1,299 |
Borrowings and Other Secured100
Borrowings and Other Secured Financings (Schedule of Maturities of Secured Financing) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Long-term Borrowings | |||
Due in 2015 | $ 0 | $ 20,740 | |
Due in 2016 | 22,396 | 20,643 | |
Due in 2017 | 22,266 | 24,000 | |
Due in 2018 | 17,937 | 17,679 | |
Due in 2019 | 18,568 | 17,571 | |
Due in 2020 | 17,005 | 8,190 | |
Thereafter | 55,596 | 43,949 | |
Total | $ 153,768 | $ 152,772 | |
Weighted average coupon at period-end | 4.00% | 4.20% | 4.40% |
Original Maturities Greater than One Year | |||
Long-term Borrowings | |||
Due in 2015 | $ 0 | $ 3,341 | |
Due in 2016 | 2,333 | 4,705 | |
Due in 2017 | 2,122 | 881 | |
Due in 2018 | 1,553 | 786 | |
Due in 2019 | 1,148 | 194 | |
Due in 2020 | 142 | 56 | |
Thereafter | 331 | 383 | |
Total | $ 7,629 | $ 10,346 | |
Weighted average coupon at period-end | 1.20% | 0.80% | |
Fixed Rate | Original Maturities Greater than One Year | |||
Long-term Borrowings | |||
Due in 2015 | $ 0 | ||
Due in 2016 | 0 | ||
Due in 2017 | 0 | ||
Due in 2018 | 0 | ||
Due in 2019 | 1 | ||
Due in 2020 | 58 | ||
Thereafter | 84 | ||
Total | $ 143 | ||
Weighted average coupon at period-end | 3.90% | ||
Variable Rate | Original Maturities Greater than One Year | |||
Long-term Borrowings | |||
Due in 2015 | $ 0 | ||
Due in 2016 | 2,333 | ||
Due in 2017 | 2,122 | ||
Due in 2018 | 1,553 | ||
Due in 2019 | 1,147 | ||
Due in 2020 | 84 | ||
Thereafter | 247 | ||
Total | $ 7,486 | ||
Weighted average coupon at period-end | 1.20% |
Borrowings and Other Secured101
Borrowings and Other Secured Financings (Schedule of Failed Sales) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Borrowings | ||
Due in 2015 | $ 0 | $ 20,740 |
Due in 2016 | 22,396 | 20,643 |
Due in 2017 | 22,266 | 24,000 |
Due in 2018 | 17,937 | 17,679 |
Due in 2019 | 18,568 | 17,571 |
Due in 2020 | 17,005 | 8,190 |
Thereafter | 55,596 | 43,949 |
Total | 153,768 | 152,772 |
Failed Sales | ||
Long-term Borrowings | ||
Due in 2015 | 0 | 32 |
Due in 2016 | 69 | 90 |
Due in 2017 | 168 | 148 |
Due in 2018 | 1 | 14 |
Due in 2019 | 54 | 10 |
Due in 2020 | 104 | 0 |
Thereafter | 4 | 50 |
Total | $ 400 | $ 344 |
Commitments, Guarantees and 102
Commitments, Guarantees and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Guarantor Obligations | |||
Total of minimum rentals to be received in the future under non-cancelable operating subleases | $ 26 | ||
Total rent expense, net of sublease rental income | 705 | $ 715 | $ 742 |
Whole Loan Sale Guarantees | |||
Guarantor Obligations | |||
Maximum Potential Payout/Notional | 23,500 | ||
Whole Loan Sale Guarantees | Current UPB, When Known | |||
Guarantor Obligations | |||
Maximum Potential Payout/Notional | 4,500 | ||
Whole Loan Sale Guarantees | UPB Not Known | |||
Guarantor Obligations | |||
Maximum Potential Payout/Notional | 18,900 | ||
Whole Loan Sale Guarantees | Representations and Warranties | |||
Guarantor Obligations | |||
Unpaid principle balance | 42,700 | ||
Residential Mortgage Loans (RMBS) | U.S. | |||
Guarantor Obligations | |||
Loans outstanding | 148,000 | ||
Loans securitized | 79,900 | ||
Gain Loss On Sales Of Mortgage Backed Securities MBS | (14,700) | ||
Residential Mortgage Loans (RMBS) | Representations and Warranties | U.S. | |||
Guarantor Obligations | |||
Loans outstanding | 47,000 | ||
Insolvent debtor loans | 21,000 | ||
Unpaid principle balance | 13,500 | ||
Accrual for payments owed as a result of breach of representations and warranties | 101 | ||
Commercial Mortgage Loans (CMBS) | U.S. | |||
Guarantor Obligations | |||
Loans originated | 67,600 | ||
Commercial Mortgage Loans (CMBS) | Non-U.S. | |||
Guarantor Obligations | |||
Loans originated | 7,200 | ||
Commercial Mortgage Loans (CMBS) | Current UPB, When Known | U.S. | |||
Guarantor Obligations | |||
Maximum Potential Payout/Notional | 1,300 | ||
Commercial Mortgage Loans (CMBS) | UPB Not Known | U.S. | |||
Guarantor Obligations | |||
Maximum Potential Payout/Notional | 400 | ||
Commercial Mortgage Loans (CMBS) | Representations and Warranties | U.S. | |||
Guarantor Obligations | |||
Unpaid principle balance | $ 35,000 |
Commitments, Guarantees and 103
Commitments, Guarantees and Contingencies (Narrative - Contingencies) (Details) - USD ($) $ in Millions | Dec. 25, 2015 | Jul. 15, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 23, 2015 | Apr. 28, 2014 | Jul. 08, 2013 | May. 03, 2013 | Jan. 10, 2013 | Sep. 28, 2012 | Aug. 08, 2012 | Aug. 07, 2012 |
Contingencies | |||||||||||||
Litigation expenses | $ 563 | $ 3,364 | $ 1,941 | ||||||||||
China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. | |||||||||||||
Contingencies | |||||||||||||
Damages sought | $ 228 | ||||||||||||
Estimate of possible loss, maximum | 240 | ||||||||||||
Credit default swap asset | $ 275 | ||||||||||||
Morgan Stanley Mortgage Loan Trusts v Morgan Stanley Mortgage Capital Holdings LLC | |||||||||||||
Contingencies | |||||||||||||
Estimate of possible loss, maximum | 527 | ||||||||||||
Morgan Stanley Mortgage Loan Trust 2006-4SL v. Morgan Stanley Mortgage Capital Inc. | |||||||||||||
Contingencies | |||||||||||||
Estimate of possible loss, maximum | 149 | ||||||||||||
Original principal balance of loans in trust | $ 303 | ||||||||||||
Morgan Stanley Mortgage Loan Trust 2006-14SL v Morgan Stanley Mortgage Capital Holdings LLC | |||||||||||||
Contingencies | |||||||||||||
Original principal balance of loans in trust | $ 354 | ||||||||||||
Morgan Stanley Mortgage Loan Trust 2007-4SL v Morgan Stanley Mortgage Capital Holdings LLC | |||||||||||||
Contingencies | |||||||||||||
Original principal balance of loans in trust | $ 305 | ||||||||||||
Morgan Stanley Mortgage Loan Trust 2006-13ARX v. Morgan Stanley Mortgage Capital Holdings LLC | |||||||||||||
Contingencies | |||||||||||||
Estimate of possible loss, maximum | 170 | ||||||||||||
Original principal balance of loans in trust | $ 609 | ||||||||||||
Morgan Stanley Mortgage Loan Trust 2006-10SL v. Morgan Stanley Mortgage Capital Holdings LLC | |||||||||||||
Contingencies | |||||||||||||
Estimate of possible loss, maximum | 197 | ||||||||||||
Original principal balance of loans in trust | $ 300 | ||||||||||||
Deutsche Zentral-Genossenschaftsbank AG et al. v. Morgan Stanley et al. | |||||||||||||
Contingencies | |||||||||||||
Estimate of possible loss, minimum | 269 | ||||||||||||
Mortgage pass through certificate backed by securitization trusts original amount | $ 644 | ||||||||||||
Mortgage pass through certificate backed by securitization trusts unpaid amount | $ 269 | ||||||||||||
Mortgage pass through certificate incurred losses | $ 83 | ||||||||||||
Deutsche Bank National Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC | |||||||||||||
Contingencies | |||||||||||||
Estimate of possible loss, maximum | 292 | ||||||||||||
Original principal balance of loans in trust | $ 735 | ||||||||||||
US Bank National Association 2007-2AX v. Morgan Stanley Mortgage Capital Holdings LLC | |||||||||||||
Contingencies | |||||||||||||
Estimate of possible loss, maximum | 240 | ||||||||||||
Original principal balance of loans in trust | $ 650 | ||||||||||||
Deutsche Bank National Trust Company 2007-NC4 v. Morgan Stanley Mortgage Capital Holdings LLC | |||||||||||||
Contingencies | |||||||||||||
Estimate of possible loss, maximum | $ 277 | ||||||||||||
Original principal balance of loans in trust | $ 1,050 |
Commitments, Guarantees and 104
Commitments, Guarantees and Contingencies (Commitments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Commitment, Fiscal Year Maturity | |
Less than 1 | $ 54,065 |
1-3 years | 25,578 |
3-5 years | 48,795 |
Over 5 years | 7,782 |
Total | 136,220 |
Letters of Credit and Other Financial Guarantees Obtained to Satisfy Collateral Requirements | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 172 |
1-3 years | 7 |
3-5 years | 0 |
Over 5 years | 107 |
Total | 286 |
Investment Activities | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 544 |
1-3 years | 78 |
3-5 years | 36 |
Over 5 years | 398 |
Total | 1,056 |
Lending Commitments | Corporate | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 14,912 |
1-3 years | 25,124 |
3-5 years | 48,655 |
Over 5 years | 7,025 |
Total | 95,716 |
Commitments participated to third parties | 4,200 |
Lending Commitments | Consumer | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 4,846 |
1-3 years | 5 |
3-5 years | 0 |
Over 5 years | 4 |
Total | 4,855 |
Lending Commitments | Residential real estate | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 24 |
1-3 years | 99 |
3-5 years | 63 |
Over 5 years | 246 |
Total | 432 |
Lending Commitments | Wholesale real estate | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 82 |
1-3 years | 265 |
3-5 years | 41 |
Over 5 years | 2 |
Total | 390 |
Forward Starting Reverse Repurchase Agreements and Securities Borrowing Agreements | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 33,485 |
1-3 years | 0 |
3-5 years | 0 |
Over 5 years | 0 |
Total | 33,485 |
Maximum commitment under reverse repurchase facility | 2,200 |
Commitments due in the next three business days | $ 25,600 |
Commitments, Guarantees and 105
Commitments, Guarantees and Contingencies (Future Minimum Rental Commitments) (Details) - Premises and Equipment $ in Millions | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Line Items] | |
2,016 | $ 612 |
2,017 | 642 |
2,018 | 570 |
2,019 | 485 |
2,020 | 438 |
Thereafter | $ 3,127 |
Commitments, Guarantees and 106
Commitments, Guarantees and Contingencies (Obligations under Guarantee Arrangements) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | $ 689,519 |
Carrying Amount (Asset)/Liability | 785 |
Collateral/Recourse | 0 |
Other Credit Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 460 |
Carrying Amount (Asset)/Liability | (24) |
Collateral/Recourse | 0 |
Non-credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 2,753,095 |
Carrying Amount (Asset)/Liability | 61,401 |
Collateral/Recourse | 0 |
Standby Letters of Credit and Other Financial Guarantees Issued | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 9,227 |
Carrying Amount (Asset)/Liability | (175) |
Collateral/Recourse | 7,633 |
Market Value Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 430 |
Carrying Amount (Asset)/Liability | (3) |
Collateral/Recourse | 6 |
Liquidity Facilities | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 3,079 |
Carrying Amount (Asset)/Liability | (5) |
Collateral/Recourse | 4,875 |
Whole Loan Sales Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 23,452 |
Carrying Amount (Asset)/Liability | 9 |
Collateral/Recourse | 0 |
Securitizations Representations and Warranties | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 65,000 |
Carrying Amount (Asset)/Liability | 98 |
Collateral/Recourse | 0 |
General Partner Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 620 |
Carrying Amount (Asset)/Liability | 29 |
Collateral/Recourse | 0 |
Less than 1 Year | Credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 208,694 |
Less than 1 Year | Other Credit Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 19 |
Less than 1 Year | Non-credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 1,103,014 |
Less than 1 Year | Standby Letters of Credit and Other Financial Guarantees Issued | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 822 |
Less than 1 Year | Market Value Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 11 |
Less than 1 Year | Liquidity Facilities | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 3,079 |
Less than 1 Year | Whole Loan Sales Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 0 |
Less than 1 Year | Securitizations Representations and Warranties | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 0 |
Less than 1 Year | General Partner Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 25 |
1 - 3 Years | Credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 298,030 |
1 - 3 Years | Other Credit Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 107 |
1 - 3 Years | Non-credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 760,769 |
1 - 3 Years | Standby Letters of Credit and Other Financial Guarantees Issued | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 1,361 |
1 - 3 Years | Market Value Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 166 |
1 - 3 Years | Liquidity Facilities | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 0 |
1 - 3 Years | Whole Loan Sales Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 0 |
1 - 3 Years | Securitizations Representations and Warranties | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 0 |
1 - 3 Years | General Partner Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 41 |
3 - 5 Years | Credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 149,171 |
3 - 5 Years | Other Credit Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 2 |
3 - 5 Years | Non-credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 321,557 |
3 - 5 Years | Standby Letters of Credit and Other Financial Guarantees Issued | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 1,174 |
3 - 5 Years | Market Value Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 224 |
3 - 5 Years | Liquidity Facilities | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 0 |
3 - 5 Years | Whole Loan Sales Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 1 |
3 - 5 Years | Securitizations Representations and Warranties | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 0 |
3 - 5 Years | General Partner Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 87 |
Over 5 Years | Credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 33,624 |
Over 5 Years | Other Credit Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 332 |
Over 5 Years | Non-credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 567,755 |
Over 5 Years | Standby Letters of Credit and Other Financial Guarantees Issued | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 5,870 |
Over 5 Years | Market Value Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 29 |
Over 5 Years | Liquidity Facilities | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 0 |
Over 5 Years | Whole Loan Sales Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 23,451 |
Over 5 Years | Securitizations Representations and Warranties | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 65,000 |
Over 5 Years | General Partner Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 467 |
Primary and Secondary Lending Commitments | |
Guarantor Obligations | |
Standby letters of credit | $ 700 |
Variable Interest Entities a107
Variable Interest Entities and Securitization Activities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Variable Interest Entity | |||
Nonredeemable noncontrolling interests | $ 1,002 | $ 1,204 | |
Additional maximum exposure to losses | 72 | 105 | |
Securities issued by SPEs | 12,900 | 14,000 | |
Proceeds from new securitization transactions | 21,243 | 20,553 | $ 24,889 |
Proceeds from cash flows from retained interests in securitization transactions | 3,062 | 3,041 | $ 4,614 |
Managed Real Estate Partnerships | |||
Variable Interest Entity | |||
Nonredeemable noncontrolling interests | $ 37 | $ 240 |
Variable Interest Entities a108
Variable Interest Entities and Securitization Activities (Consolidated VIEs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Variable Interest Entity | ||
Noncontrolling Interest Decrease From Deconsolidation | $ 191 | $ 1,606 |
Real Estate Funds and Other [Member] | ||
Variable Interest Entity | ||
Noncontrolling Interest Decrease From Deconsolidation | 244 | 1,600 |
Mortgage and Asset-Backed Securitizations | ||
Variable Interest Entity | ||
VIE assets | 375 | 563 |
VIE liabilities | 234 | 337 |
Managed Real Estate Partnerships | ||
Variable Interest Entity | ||
VIE assets | 38 | 288 |
VIE liabilities | 1 | 4 |
Other Structured Financings | ||
Variable Interest Entity | ||
VIE assets | 787 | 928 |
VIE liabilities | 13 | 80 |
Other | ||
Variable Interest Entity | ||
VIE assets | 1,400 | 1,199 |
VIE liabilities | $ 189 | $ 0 |
Variable Interest Entities a109
Variable Interest Entities and Securitization Activities (Non-Consolidated VIEs) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Mortgage and Asset-Backed Securities | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | $ 126,872 | $ 174,548 |
Maximum exposure to loss | 13,855 | 16,097 |
Mortgage and Asset-Backed Securities | Assets | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 13,361 | 15,043 |
Mortgage and Asset-Backed Securities | Debt and Equity Interests | ||
Variable Interest Entity | ||
Maximum exposure to loss | 13,361 | 15,028 |
Carrying value of exposure to loss | 13,361 | 15,028 |
Mortgage and Asset-Backed Securities | Derivative and Other Contracts, Assets | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 15 |
Carrying value of exposure to loss | 0 | 15 |
Mortgage and Asset-Backed Securities | Liabilities | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 0 | 0 |
Mortgage and Asset-Backed Securities | Commitments, Guarantees and Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 494 | 1,054 |
Carrying value of exposure to loss | 0 | 0 |
Mortgage and Asset-Backed Securities | Derivative and Other Contracts, 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) | 13,800 | 30,800 |
Residential Mortgage | Debt and Equity Interests | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 1,000 | 1,900 |
Commercial Mortgage | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 57,300 | 71,900 |
Commercial Mortgage | Debt and Equity Interests | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 2,900 | 2,400 |
U.S. Agency Collateralized Mortgage Obligations | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 13,200 | 20,600 |
U.S. Agency Collateralized Mortgage Obligations | Debt and Equity Interests | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 2,800 | 4,000 |
Other Consumer or Commercial Loans | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 42,500 | 51,200 |
Other Consumer or Commercial Loans | Debt and Equity Interests | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 6,700 | 6,800 |
Collateralized Debt Obligations | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 8,805 | 26,567 |
Maximum exposure to loss | 1,490 | 3,496 |
Collateralized Debt Obligations | Assets | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 1,259 | 3,064 |
Collateralized Debt Obligations | Debt and Equity Interests | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,259 | 3,062 |
Carrying value of exposure to loss | 1,259 | 3,062 |
Collateralized Debt Obligations | Derivative and Other Contracts, Assets | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 2 |
Carrying value of exposure to loss | 0 | 2 |
Collateralized Debt Obligations | Liabilities | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 0 | 0 |
Collateralized Debt Obligations | Commitments, Guarantees and Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 231 | 432 |
Carrying value of exposure to loss | 0 | 0 |
Collateralized Debt Obligations | Derivative and Other Contracts, 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) | 4,654 | 3,449 |
Maximum exposure to loss | 2,835 | 2,225 |
Municipal Tender Option Bonds | Assets | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 6 | 17 |
Municipal Tender Option Bonds | Debt and Equity Interests | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1 | 13 |
Carrying value of exposure to loss | 1 | 13 |
Municipal Tender Option Bonds | Derivative and Other Contracts, Assets | ||
Variable Interest Entity | ||
Maximum exposure to loss | 2,834 | 2,212 |
Carrying value of exposure to loss | 5 | 4 |
Municipal Tender Option Bonds | Liabilities | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 0 | 0 |
Municipal Tender Option Bonds | Commitments, Guarantees and Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of exposure to loss | 0 | 0 |
Municipal Tender Option Bonds | Derivative and Other Contracts, 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) | 2,201 | 2,040 |
Maximum exposure to loss | 1,490 | 1,775 |
Other Structured Financings | Assets | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 685 | 741 |
Other Structured Financings | Debt and Equity Interests | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,129 | 1,158 |
Carrying value of exposure to loss | 685 | 741 |
Other Structured Financings | Derivative and Other Contracts, Assets | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of exposure to loss | 0 | 0 |
Other Structured Financings | Liabilities | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 3 | 5 |
Other Structured Financings | Commitments, Guarantees and Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 361 | 617 |
Carrying value of exposure to loss | 3 | 5 |
Other Structured Financings | Derivative and Other Contracts, Liabilities | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 0 | 0 |
Other | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 20,775 | 19,237 |
Maximum exposure to loss | 4,143 | 4,477 |
Other | Assets | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 3,867 | 3,958 |
Other | Debt and Equity Interests | ||
Variable Interest Entity | ||
Maximum exposure to loss | 3,854 | 3,884 |
Carrying value of exposure to loss | 3,854 | 3,884 |
Other | Derivative and Other Contracts, Assets | ||
Variable Interest Entity | ||
Maximum exposure to loss | 67 | 164 |
Carrying value of exposure to loss | 13 | 74 |
Other | Liabilities | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 15 | 57 |
Other | Commitments, Guarantees and Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 222 | 429 |
Carrying value of exposure to loss | 0 | 0 |
Other | Derivative and Other Contracts, Liabilities | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | $ 15 | $ 57 |
Variable Interest Entities a110
Variable Interest Entities and Securitization Activities (Transfers of Assets with Continuing Involvement 1) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entity | ||
Derivative assets (fair value) | $ 28,613 | $ 36,394 |
Derivative liabilities (fair value) | 29,474 | 40,212 |
Special Purpose Entities | ||
Variable Interest Entity | ||
Retained interests (fair value) | 2,246 | 2,685 |
Interests purchased in the secondary market (fair value) | 320 | 808 |
Derivative assets (fair value) | 494 | 633 |
Derivative liabilities (fair value) | 449 | 86 |
Special Purpose Entities | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 887 | 1,203 |
Interests purchased in the secondary market (fair value) | 187 | 645 |
Special Purpose Entities | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,359 | 1,482 |
Interests purchased in the secondary market (fair value) | 133 | 163 |
Special Purpose Entities | Residential Mortgage | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 22,440 | 26,549 |
Retained interests (fair value) | 160 | 108 |
Interests purchased in the secondary market (fair value) | 60 | 64 |
Derivative assets (fair value) | 0 | 0 |
Derivative liabilities (fair value) | 0 | 0 |
Special Purpose Entities | Residential Mortgage | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 0 | 10 |
Interests purchased in the secondary market (fair value) | 0 | 32 |
Special Purpose Entities | Residential Mortgage | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 160 | 98 |
Interests purchased in the secondary market (fair value) | 60 | 32 |
Special Purpose Entities | Commercial Mortgage Loans (CMBS) | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 72,760 | 58,660 |
Retained interests (fair value) | 301 | 237 |
Interests purchased in the secondary market (fair value) | 151 | 201 |
Derivative assets (fair value) | 343 | 495 |
Derivative liabilities (fair value) | 0 | 0 |
Special Purpose Entities | Commercial Mortgage Loans (CMBS) | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 238 | 117 |
Interests purchased in the secondary market (fair value) | 88 | 129 |
Special Purpose Entities | Commercial Mortgage Loans (CMBS) | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 63 | 120 |
Interests purchased in the secondary market (fair value) | 63 | 72 |
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 17,978 | 20,826 |
Retained interests (fair value) | 649 | 1,019 |
Interests purchased in the secondary market (fair value) | 99 | 61 |
Derivative assets (fair value) | 0 | 0 |
Derivative liabilities (fair value) | 0 | 0 |
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 649 | 1,019 |
Interests purchased in the secondary market (fair value) | 99 | 61 |
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 0 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Credit-Linked Notes and Other | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 12,235 | 24,011 |
Retained interests (fair value) | 1,136 | 1,321 |
Interests purchased in the secondary market (fair value) | 10 | 482 |
Derivative assets (fair value) | 151 | 138 |
Derivative liabilities (fair value) | 449 | 86 |
Special Purpose Entities | Credit-Linked Notes and Other | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 0 | 57 |
Interests purchased in the secondary market (fair value) | 0 | 423 |
Special Purpose Entities | Credit-Linked Notes and Other | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,136 | 1,264 |
Interests purchased in the secondary market (fair value) | $ 10 | $ 59 |
Variable Interest Entities a111
Variable Interest Entities and Securitization Activities (Transfers of Assets with Continuing Involvement 2) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Variable Interest Entity | ||
Derivative assets (fair value) | $ 28,613 | $ 36,394 |
Derivative liabilities (fair value) | 29,474 | 40,212 |
Equity Securities And Over The Counter | ||
Variable Interest Entity | ||
Proceeds from sale of equity | 7,900 | |
Fair value of assets sold | 7,900 | |
Derivative assets (fair value) | 97 | |
Derivative liabilities (fair value) | 39.8 | |
Special Purpose Entities | ||
Variable Interest Entity | ||
Retained interests (fair value) | 2,246 | 2,685 |
Interests purchased in the secondary market (fair value) | 320 | 808 |
Derivative assets (fair value) | 494 | 633 |
Derivative liabilities (fair value) | 449 | 86 |
Special Purpose Entities | Level 1 | ||
Variable Interest Entity | ||
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 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 903 | 1,289 |
Interests purchased in the secondary market (fair value) | 299 | 773 |
Derivative assets (fair value) | 466 | 559 |
Derivative liabilities (fair value) | 110 | 82 |
Special Purpose Entities | Level 3 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,343 | 1,396 |
Interests purchased in the secondary market (fair value) | 21 | 35 |
Derivative assets (fair value) | 28 | 74 |
Derivative liabilities (fair value) | 339 | 4 |
Special Purpose Entities | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 887 | 1,203 |
Interests purchased in the secondary market (fair value) | 187 | 645 |
Special Purpose Entities | Investment Grade | Level 1 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 0 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Investment Grade | Level 2 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 886 | 1,166 |
Interests purchased in the secondary market (fair value) | 187 | 644 |
Special Purpose Entities | Investment Grade | Level 3 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1 | 37 |
Interests purchased in the secondary market (fair value) | 0 | 1 |
Special Purpose Entities | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,359 | 1,482 |
Interests purchased in the secondary market (fair value) | 133 | 163 |
Special Purpose Entities | Noninvestment Grade | Level 1 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 0 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Noninvestment Grade | Level 2 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 17 | 123 |
Interests purchased in the secondary market (fair value) | 112 | 129 |
Special Purpose Entities | Noninvestment Grade | Level 3 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,342 | 1,359 |
Interests purchased in the secondary market (fair value) | $ 21 | $ 34 |
Variable Interest Entities a112
Variable Interest Entities and Securitization Activities (Proceeds from retained interests in securitization transactions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Securitization Activities and Variable Interest Entities [Abstract] | |||
Proceeds received from new securitization transactions | $ 21,243 | $ 20,553 | $ 24,889 |
Proceeds from retained interests in securitization transactions | 3,062 | 3,041 | 4,614 |
Collateralized Loan Obligations [Member] | Special Purpose Entities | |||
Variable Interest Entity | |||
Maturities, payments and sales | $ 1,110 | $ 2,388 | $ 2,347 |
Variable Interest Entities a113
Variable Interest Entities and Securitization Activities (Failed Sales) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entity | ||
Assets, carrying value | $ 400 | $ 352 |
Liabilities, carrying value | $ 400 | $ 344 |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Regulatory Requirements | ||
Net assets of consolidated subsidiaries may be restricted as to the payment of cash dividends and advances to the parent company | $ 28,600 | $ 31,800 |
MS&Co. | ||
Regulatory Requirements | ||
Net capital | 10,254 | 6,593 |
Amount of capital that exceeds the minimum required | 8,458 | 4,928 |
Net capital, minimum amount required to hold | 1,000 | |
Net capital, minimum amount required to hold in accordance with the market and credit risk standards | 500 | |
Amount by which if net capital falls below, the company is required to notify the SEC | 5,000 | |
MSSB LLC | ||
Regulatory Requirements | ||
Net capital | 3,613 | 4,620 |
Amount of capital that exceeds the minimum required | $ 3,459 | $ 4,460 |
Regulatory Requirements (Capita
Regulatory Requirements (Capital Measures) (Details) - U.S. Basel III - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Advanced Transitional Approach | ||
Balance | ||
Common Equity Tier capital, amount | $ 59,409 | $ 57,324 |
Tier 1 capital, amount | 66,722 | 64,182 |
Total capital, amount | 79,403 | 74,972 |
Tier 1 leverage capital, amount | 0 | 0 |
Assets | ||
RWAs | 384,162 | 456,008 |
Adjusted average total assets | $ 803,574 | $ 810,524 |
Ratio | ||
Common Equity Tier 1 capital, ratio | 15.50% | 12.60% |
Tier 1 capital ratio | 17.40% | 14.10% |
Total capital ratio | 20.70% | 16.40% |
Minimum Regulatory Capital Ratio | ||
Minimum Common Equity Tier 1 capital, required | 4.50% | 4.00% |
Minimum Tier 1 capital ratio, required | 6.00% | 5.50% |
Minimum total capital ratio, required | 8.00% | 8.00% |
Minimum Tier 1 leverage ratio, required | 4.00% | 4.00% |
Standardized Transitional Approach | ||
Ratio | ||
Tier 1 leverage ratio | 8.30% | 7.90% |
Regulatory Requirements (Signif
Regulatory Requirements (Significant U.S. Bank Operating Subsidiaries' Capital) (Details) - U.S. Basel III - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Advanced Transitional Approach | ||
Regulatory Requirements | ||
Common Equity Tier capital, amount | $ 59,409 | $ 57,324 |
Tier 1 capital, amount | 66,722 | 64,182 |
Total capital, amount | 79,403 | 74,972 |
Tier 1 leverage capital, amount | $ 0 | $ 0 |
Ratio | ||
Common Equity Tier 1 capital, ratio | 15.50% | 12.60% |
Tier 1 capital ratio | 17.40% | 14.10% |
Total capital ratio | 20.70% | 16.40% |
Standardized Transitional Approach | ||
Ratio | ||
Tier 1 leverage ratio | 8.30% | 7.90% |
MSBNA | ||
Required Capital Ratio | ||
Common Equity Tier 1 capital ratio, required | 6.50% | 6.50% |
Tier 1 capital ratio, required | 8.00% | 8.00% |
Total capital ratio, required | 10.00% | 10.00% |
Tier 1 leverage ratio, required | 5.00% | 5.00% |
MSBNA | Standardized Transitional Approach | ||
Regulatory Requirements | ||
Common Equity Tier capital, amount | $ 13,333 | |
Tier 1 capital, amount | 13,333 | |
Total capital, amount | 15,097 | |
Tier 1 leverage capital, amount | $ 13,333 | |
Ratio | ||
Common Equity Tier 1 capital, ratio | 15.10% | |
Tier 1 capital ratio | 15.10% | |
Total capital ratio | 17.10% | |
Tier 1 leverage ratio | 10.20% | |
Required Capital Ratio | ||
Common Equity Tier 1 capital ratio, required | 6.50% | |
Tier 1 capital ratio, required | 8.00% | |
Total capital ratio, required | 10.00% | |
Tier 1 leverage ratio, required | 5.00% | |
MSBNA | Transitional / U.S. Basel I And Basel 2.5 Approach | ||
Regulatory Requirements | ||
Common Equity Tier capital, amount | $ 12,355 | |
Tier 1 capital, amount | 12,355 | |
Total capital, amount | 14,040 | |
Tier 1 leverage capital, amount | $ 12,355 | |
Ratio | ||
Common Equity Tier 1 capital, ratio | 12.20% | |
Tier 1 capital ratio | 12.20% | |
Total capital ratio | 13.90% | |
Tier 1 leverage ratio | 10.20% | |
MSPBNA | ||
Required Capital Ratio | ||
Common Equity Tier 1 capital ratio, required | 6.50% | 6.50% |
Tier 1 capital ratio, required | 8.00% | 8.00% |
Total capital ratio, required | 10.00% | 10.00% |
Tier 1 leverage ratio, required | 5.00% | 5.00% |
MSPBNA | Standardized Transitional Approach | ||
Regulatory Requirements | ||
Common Equity Tier capital, amount | $ 4,197 | |
Tier 1 capital, amount | 4,197 | |
Total capital, amount | 4,225 | |
Tier 1 leverage capital, amount | $ 4,197 | |
Ratio | ||
Common Equity Tier 1 capital, ratio | 26.50% | |
Tier 1 capital ratio | 26.50% | |
Total capital ratio | 26.70% | |
Tier 1 leverage ratio | 10.50% | |
MSPBNA | Transitional / U.S. Basel I And Basel 2.5 Approach | ||
Regulatory Requirements | ||
Common Equity Tier capital, amount | $ 2,468 | |
Tier 1 capital, amount | 2,468 | |
Total capital, amount | 2,480 | |
Tier 1 leverage capital, amount | $ 2,468 | |
Ratio | ||
Common Equity Tier 1 capital, ratio | 20.30% | |
Tier 1 capital ratio | 20.30% | |
Total capital ratio | 20.40% | |
Tier 1 leverage ratio | 9.40% |
Total Equity (Narrative) (Detai
Total Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 20, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 28, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 27, 2013 |
Treasury Shares | |||||||||||||||
Authorized repurchase amount of outstanding common stock approved by the Federal Reserve | $ 3,100 | ||||||||||||||
Dividends declared per common share | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.05 | $ 0.55 | $ 0.35 | $ 0.2 | |||
Cash dividend declared on the Company's outstanding preferred stock | $ 452 | $ 311 | $ 271 | ||||||||||||
Common stock repurchased | 2,125 | 900 | |||||||||||||
Nonredeemable Noncontrolling Interests | |||||||||||||||
Nonredeemable noncontrolling interests | $ 1,002 | $ 1,204 | 1,002 | 1,204 | |||||||||||
Reduction in nonredeemable noncontrolling interests primarily related to deconsolidation of certain legal entities associated with a real estate fund | 191 | 1,606 | |||||||||||||
Wealth Management JV. | |||||||||||||||
Wealth Management JV redemption value adjustment | $ 0 | $ 0 | $ (151) | ||||||||||||
Citi | |||||||||||||||
Wealth Management JV. | |||||||||||||||
Repayment of senior debt | $ 880 | ||||||||||||||
Wealth Management JV | |||||||||||||||
Wealth Management JV. | |||||||||||||||
Purchase of noncontrolling interests, percent | 35.00% | 35.00% | |||||||||||||
Purchase of noncontrolling interests, gross amount | $ 4,725 | ||||||||||||||
Parent's ownership interest in noncontrolling interest | 100.00% | 65.00% | |||||||||||||
Wealth Management JV redemption value adjustment | $ (151) | ||||||||||||||
Wealth Management JV | Series A Preferred Stock | |||||||||||||||
Wealth Management JV. | |||||||||||||||
Proceeds from redemption of preferred stock | $ 2,028 |
Total Equity (Changes in Shares
Total Equity (Changes in Shares of Common Stock Outstanding) (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Redeemable Noncontrolling Interests and Total Equity | ||
Shares outstanding at beginning of period | 1,950,980,142 | 1,944,868,751 |
Treasury stock purchases | (78,000,000) | (46,000,000) |
Other | 47,000,000 | 52,000,000 |
Shares outstanding at end of period | 1,920,024,027 | 1,950,980,142 |
Total Equity (Preferred Stock O
Total Equity (Preferred Stock Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock | ||
Preferred stock carrying value | $ 7,520 | $ 6,020 |
Series A Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 44,000,000,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,100 | 1,100 |
Series C Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 519,882,000,000 | |
Liquidation preference per share | $ 1,000 | |
Preferred stock carrying value | $ 408 | 408 |
Series C Preferred Stock | MUFG | ||
Class of Stock | ||
Preferred Stock Shares Issued | 1,160,791 | |
Preferred Stock, Value, Issued | $ 911 | |
Preferred Stock Redemption Amount | $ 503 | |
Preferred Stock Redemption Shares | 640,909 | |
Convert to common shares | $ 705 | |
Series E Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 34,500,000,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 862 | 862 |
Series F Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 34,000,000,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 850 | 850 |
Series G Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 20,000,000,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 500 | 500 |
Series H Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 52,000,000,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,300 | 1,300 |
Series I Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 40,000,000,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,000 | $ 1,000 |
Series J Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 60,000,000,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,500 |
Total Equity (Preferred Stock)
Total Equity (Preferred Stock) (Details) $ / shares in Units, $ in Millions | Mar. 19, 2015$ / sharesshares | Sep. 18, 2014$ / sharesshares | Apr. 29, 2014$ / sharesshares | Dec. 10, 2013$ / sharesshares | Sep. 30, 2013$ / sharesshares | Oct. 13, 2008$ / sharesshares | Jul. 31, 2006$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Preferred Stock | ||||||||||
Preferred stock shares authorized | shares | 30,000,000 | |||||||||
Preferred stock carrying value | $ | $ 7,520 | $ 6,020 | ||||||||
Proceeds from preferred stock offering | $ | 1,493 | 2,782 | $ 1,696 | |||||||
Dividends, Preferred Stock | $ | $ 452 | 311 | $ 120 | |||||||
Series A Preferred Stock | ||||||||||
Preferred Stock | ||||||||||
Preferred stock shares outstanding | shares | 44,000,000,000 | |||||||||
Liquidation preference per share | $ 25,000 | |||||||||
Preferred stock carrying value | $ | $ 1,100 | 1,100 | ||||||||
Depositary Shares issued (in shares) | shares | 44,000,000 | |||||||||
Fraction of underlying stock that each Depositary Share represents | 0.001 | |||||||||
Preferred Stock Redemption Date | Jul. 15, 2011 | |||||||||
Preferred stock dividend payment frequency | Quarterly | |||||||||
Dividend payable date | Jan. 15, 2016 | |||||||||
Shareholders of record, date | Dec. 31, 2015 | |||||||||
Preferred stock par value (per share) | $ 0.01 | |||||||||
Preferred stock redemption price (per share) | 25,000 | |||||||||
Preferred stock redemption price per Depositary Share | $ 25 | |||||||||
Preferred stock dividend declared (per share) | $ 255.56 | |||||||||
Series C Preferred Stock | ||||||||||
Preferred Stock | ||||||||||
Preferred stock shares outstanding | shares | 519,882,000,000 | |||||||||
Liquidation preference per share | $ 1,000 | |||||||||
Preferred stock carrying value | $ | $ 408 | 408 | ||||||||
Depositary Shares issued (in shares) | shares | 1,160,791 | |||||||||
Preferred Stock Redemption Date | Oct. 15, 2011 | |||||||||
Dividend payable date | Jan. 15, 2016 | |||||||||
Shareholders of record, date | Dec. 31, 2015 | |||||||||
Preferred stock dividend rate | 10.00% | |||||||||
Preferred stock redemption price (per share) | $ 1,100 | |||||||||
Preferred stock dividend declared (per share) | $ 25 | |||||||||
Series E Preferred Stock | ||||||||||
Preferred Stock | ||||||||||
Preferred stock shares outstanding | shares | 34,500,000,000 | |||||||||
Liquidation preference per share | $ 25,000 | |||||||||
Preferred stock carrying value | $ | $ 862 | 862 | ||||||||
Depositary Shares issued (in shares) | shares | 34,500,000 | |||||||||
Fraction of underlying stock that each Depositary Share represents | 0.001 | |||||||||
Preferred Stock Redemption Date | Oct. 15, 2023 | |||||||||
Preferred stock dividend payment frequency | Quarterly | |||||||||
Dividend payable date | Jan. 15, 2016 | |||||||||
Shareholders of record, date | Dec. 31, 2015 | |||||||||
Preferred stock par value (per share) | $ 0.01 | |||||||||
Preferred stock redemption price (per share) | 25,000 | |||||||||
Preferred stock redemption price per Depositary Share | $ 25 | |||||||||
Preferred stock dividend declared (per share) | $ 445.31 | |||||||||
Series F Preferred Stock | ||||||||||
Preferred Stock | ||||||||||
Preferred stock shares outstanding | shares | 34,000,000,000 | |||||||||
Liquidation preference per share | $ 25,000 | |||||||||
Preferred stock carrying value | $ | $ 850 | 850 | ||||||||
Depositary Shares issued (in shares) | shares | 34,000,000 | |||||||||
Fraction of underlying stock that each Depositary Share represents | 0.001 | |||||||||
Preferred Stock Redemption Date | Jan. 15, 2024 | |||||||||
Preferred stock dividend payment frequency | Quarterly | |||||||||
Dividend payable date | Jan. 15, 2016 | |||||||||
Shareholders of record, date | Dec. 31, 2015 | |||||||||
Preferred stock par value (per share) | $ 0.01 | |||||||||
Preferred stock redemption price (per share) | 25,000 | |||||||||
Preferred stock redemption price per Depositary Share | $ 25 | |||||||||
Preferred stock dividend declared (per share) | $ 429.69 | |||||||||
Series G Preferred Stock | ||||||||||
Preferred Stock | ||||||||||
Preferred stock shares outstanding | shares | 20,000,000,000 | |||||||||
Liquidation preference per share | $ 25,000 | |||||||||
Preferred stock carrying value | $ | $ 500 | 500 | ||||||||
Depositary Shares issued (in shares) | shares | 20,000,000 | |||||||||
Fraction of underlying stock that each Depositary Share represents | 0.001 | |||||||||
Preferred Stock Redemption Date | Jul. 15, 2019 | |||||||||
Preferred stock dividend payment frequency | Quarterly | |||||||||
Dividend payable date | Jan. 15, 2016 | |||||||||
Shareholders of record, date | Dec. 31, 2015 | |||||||||
Preferred stock par value (per share) | $ 0.01 | |||||||||
Preferred stock dividend rate | 6.625% | |||||||||
Preferred stock redemption price (per share) | $ 25,000 | |||||||||
Preferred stock redemption price per Depositary Share | $ 25 | |||||||||
Preferred stock dividend declared (per share) | $ 414.06 | |||||||||
Series H Preferred Stock | ||||||||||
Preferred Stock | ||||||||||
Preferred stock shares outstanding | shares | 52,000,000,000 | |||||||||
Liquidation preference per share | $ 25,000 | |||||||||
Preferred stock carrying value | $ | $ 1,300 | 1,300 | ||||||||
Depositary Shares issued (in shares) | shares | 1,300,000 | |||||||||
Fraction of underlying stock that each Depositary Share represents | 0.04 | |||||||||
Preferred Stock Redemption Date | Jul. 15, 2019 | |||||||||
Preferred stock dividend payment frequency | Quarterly | |||||||||
Dividend payable date | Jan. 15, 2016 | |||||||||
Shareholders of record, date | Dec. 31, 2015 | |||||||||
Preferred stock par value (per share) | $ 0.01 | |||||||||
Preferred stock redemption price (per share) | 25,000 | |||||||||
Preferred stock redemption price per Depositary Share | $ 1,000 | |||||||||
Preferred stock dividend declared (per share) | $ 681.25 | |||||||||
Series I Preferred Stock | ||||||||||
Preferred Stock | ||||||||||
Preferred stock shares outstanding | shares | 40,000,000,000 | |||||||||
Liquidation preference per share | $ 25,000 | |||||||||
Preferred stock carrying value | $ | $ 1,000 | $ 1,000 | ||||||||
Depositary Shares issued (in shares) | shares | 40,000,000 | |||||||||
Fraction of underlying stock that each Depositary Share represents | 0.001 | |||||||||
Preferred Stock Redemption Date | Oct. 15, 2024 | |||||||||
Preferred stock dividend payment frequency | Quarterly | |||||||||
Dividend payable date | Jan. 15, 2016 | |||||||||
Shareholders of record, date | Dec. 31, 2015 | |||||||||
Preferred stock par value (per share) | $ 0.01 | |||||||||
Preferred stock redemption price (per share) | 25,000 | |||||||||
Preferred stock redemption price per Depositary Share | $ 25 | |||||||||
Preferred stock dividend declared (per share) | $ 398.44 | |||||||||
Series J Preferred Stock | ||||||||||
Preferred Stock | ||||||||||
Preferred stock shares outstanding | shares | 60,000,000,000 | |||||||||
Liquidation preference per share | $ 25,000 | |||||||||
Preferred stock carrying value | $ | $ 1,500 | |||||||||
Depositary Shares issued (in shares) | shares | 1,500,000 | |||||||||
Fraction of underlying stock that each Depositary Share represents | 0.04 | |||||||||
Preferred Stock Redemption Date | Jul. 15, 2020 | |||||||||
Preferred stock dividend payment frequency | Quarterly | |||||||||
Dividend payable date | Jan. 15, 2016 | |||||||||
Shareholders of record, date | Dec. 31, 2015 | |||||||||
Preferred stock par value (per share) | $ 0.01 | |||||||||
Preferred stock redemption price (per share) | 25,000 | |||||||||
Preferred stock redemption price per Depositary Share | $ 1,000 | |||||||||
Preferred stock dividend declared (per share) | $ 693.75 |
Total Equity (Components of Acc
Total Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Beginning balance | $ (1,248) | $ (1,093) | $ (516) |
Other comprehensive income (loss) before reclassifications | (361) | (140) | (565) |
Amounts reclassified from AOCI | (47) | (15) | (12) |
Net other comprehensive income (loss) during the period | (408) | (155) | (577) |
Ending balance | (1,656) | (1,248) | (1,093) |
Foreign Currency Translation Adjustments | |||
Beginning balance | (663) | (266) | (123) |
Other comprehensive income (loss) before reclassifications | (300) | (397) | (143) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Net other comprehensive income (loss) during the period | (300) | (397) | (143) |
Ending balance | (963) | (663) | (266) |
Change in Net Unrealized Gains (Losses) on Securities Available for Sale | |||
Beginning balance | (73) | (282) | 151 |
Other comprehensive income (loss) before reclassifications | (193) | 233 | (406) |
Amounts reclassified from AOCI | (53) | (24) | (27) |
Net other comprehensive income (loss) during the period | (246) | 209 | (433) |
Ending balance | (319) | (73) | (282) |
Pension, Postretirement and Other Related Adjustments | |||
Beginning balance | (512) | (545) | (544) |
Other comprehensive income (loss) before reclassifications | 132 | 24 | (16) |
Amounts reclassified from AOCI | 6 | 9 | 15 |
Net other comprehensive income (loss) during the period | 138 | 33 | (1) |
Ending balance | $ (374) | $ (512) | $ (545) |
Total Equity (Cumulative Foreig
Total Equity (Cumulative Foreign Currency Translation Adjustments, Net of Tax) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Jun. 30, 2014 |
Redeemable Noncontrolling Interests and Total Equity | ||
Net investments in non-U.S. dollar functional currency subsidiaries subject to hedges | $ 8,170 | $ 9,110 |
Cumulative foreign currency translation adjustments resulting from net investments in subsidiaries with a non-U.S. dollar functional currency | (1,996) | (1,262) |
Cumulative foreign currency translation adjustments resulting from realized or unrealized losses on hedges, net of tax | 1,033 | 599 |
Total cumulative foreign currency translation adjustments, net of tax | $ (963) | $ (663) |
Earnings Per Common Share (Calc
Earnings Per Common Share (Calculation of Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic EPS: | |||||||||||
Income from continuing operations | $ 943 | $ 1,051 | $ 1,833 | $ 2,468 | $ (1,578) | $ 1,757 | $ 1,917 | $ 1,585 | $ 6,295 | $ 3,681 | $ 3,656 |
Income (loss) from discontinued operations | (7) | (2) | (2) | (5) | (8) | (5) | 0 | (1) | (16) | (14) | (43) |
Net income | 936 | 1,049 | 1,831 | 2,463 | (1,586) | 1,752 | 1,917 | 1,584 | 6,279 | 3,667 | 3,613 |
Net income applicable to redeemable noncontrolling interests | 0 | 0 | 222 | ||||||||
Net income applicable to nonredeemable noncontrolling interests | 28 | 31 | 24 | 69 | 44 | 59 | 18 | 79 | 152 | 200 | 459 |
Net income applicable to Morgan Stanley | 908 | 1,018 | 1,807 | 2,394 | (1,630) | 1,693 | 1,899 | 1,505 | 6,127 | 3,467 | 2,932 |
Less: Preferred dividends | (452) | (311) | (120) | ||||||||
Less: Wealth Management JV redemption value adjustment | 0 | 0 | (151) | ||||||||
Less: Allocation of (earnings) loss to participating RSUs | (4) | (4) | (6) | ||||||||
Less: Allocation of undistributed (earnings) to Equity Units: | |||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ 753 | $ 939 | $ 1,665 | $ 2,314 | $ (1,749) | $ 1,629 | $ 1,820 | $ 1,449 | $ 5,671 | $ 3,152 | $ 2,655 |
Weighted average common shares outstanding | 1,909,116,527 | 1,923,805,397 | 1,905,823,882 | ||||||||
Income from continuing operations | $ 0.4 | $ 0.49 | $ 0.87 | $ 1.21 | $ (0.91) | $ 0.85 | $ 0.94 | $ 0.75 | $ 2.98 | $ 1.65 | $ 1.42 |
Income (loss) from discontinued operations | 0 | 0 | 0 | (0.01) | 0 | 0 | 0 | 0 | (0.01) | (0.01) | (0.03) |
Earnings (loss) per basic common share | $ 0.4 | $ 0.49 | $ 0.87 | $ 1.2 | $ (0.91) | $ 0.85 | $ 0.94 | $ 0.75 | $ 2.97 | $ 1.64 | $ 1.39 |
Diluted EPS: | |||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ 753 | $ 939 | $ 1,665 | $ 2,314 | $ (1,749) | $ 1,629 | $ 1,820 | $ 1,449 | $ 5,671 | $ 3,152 | $ 2,655 |
Weighted average common shares outstanding | 1,909,116,527 | 1,923,805,397 | 1,905,823,882 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options and RSUs | 44,000,000 | 47,000,000 | 51,000,000 | ||||||||
Weighted average common shares outstanding and common stock equivalents | 1,952,815,453 | 1,970,535,560 | 1,956,519,738 | ||||||||
Earnings per diluted common share: | |||||||||||
Income from continuing operations | $ 0.39 | $ 0.48 | $ 0.85 | $ 1.18 | $ (0.91) | $ 0.83 | $ 0.92 | $ 0.74 | $ 2.91 | $ 1.61 | $ 1.38 |
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (0.01) | (0.01) | (0.02) |
Earnings (loss) per diluted common share | $ 0.39 | $ 0.48 | $ 0.85 | $ 1.18 | $ (0.91) | $ 0.83 | $ 0.92 | $ 0.74 | $ 2.9 | $ 1.6 | $ 1.36 |
Earnings Per Common Share (Anti
Earnings Per Common Share (Antidilutive Securities Excluded from the Computation of Diluted EPS) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive securities outstanding | 12 | 15 | 36 |
RSUs and Performance-based Stock Units | |||
Antidilutive securities outstanding | 1 | 2 | 3 |
Stock Options | |||
Antidilutive securities outstanding | 11 | 13 | 33 |
Interest Income and Interest125
Interest Income and Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income: | |||||||||||
Trading assets | $ 2,262 | $ 2,109 | $ 2,292 | ||||||||
Investment securities | 876 | 613 | 447 | ||||||||
Loans | 2,163 | 1,690 | 1,121 | ||||||||
Interest bearing deposits with banks | 108 | 109 | 129 | ||||||||
Interest income securities purchased under agreements to resell and securities borrowed | (560) | (298) | (20) | ||||||||
Customer receivables and Other | 986 | 1,190 | 1,240 | ||||||||
Total Interest income | 5,835 | 5,413 | 5,209 | ||||||||
Interest expense: | |||||||||||
Deposits | 78 | 106 | 159 | ||||||||
Short-term borrowings | 16 | 4 | 20 | ||||||||
Long-term borrowings | 3,481 | 3,609 | 3,758 | ||||||||
Securities sold under agreements to repurchase and Securities loaned | 1,024 | 1,216 | 1,469 | ||||||||
Customer payables and Other | (1,857) | (1,257) | (975) | ||||||||
Total Interest expense | 2,742 | 3,678 | 4,431 | ||||||||
Net interest | $ 1,037 | $ 762 | $ 698 | $ 596 | $ 603 | $ 557 | $ 267 | $ 308 | $ 3,093 | $ 1,735 | $ 778 |
Deferred Compensation Plans (St
Deferred Compensation Plans (Stock-based Compensation Plans) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based Compensation Plans | |||
Share-based Payment Awards | |||
Stock-based compensation expense | $ 1,103 | $ 1,262 | $ 1,184 |
Tax benefit for stock-based compensation expense | 369 | 404 | 371 |
Unrecognized compensation cost related to unvested stock-based awards | 720 | ||
Unrecognized compensation cost related to unvested stock-based awards will be recognized in 2016 | 448 | ||
Unrecognized compensation cost related to unvested stock-based awards will be recognized in 2017 | 228 | ||
Unrecognized compensation cost related to unvested stock-based awards will be recognized thereafter | $ 44 | ||
Shares available for future grant | 96 | ||
Stock-based Compensation Plans | Employee Who Satisfied Retirement Eligible Requirements under Award Terms that Do Not Contain Service Period [Member] | |||
Share-based Payment Awards | |||
Stock-based compensation expense | $ 68 | 31 | 25 |
Restricted Stock Units | |||
Share-based Payment Awards | |||
Stock-based compensation expense | 1,080 | 1,212 | 1,140 |
Stock Options | |||
Share-based Payment Awards | |||
Stock-based compensation expense | (3) | 5 | 15 |
Performance-based Stock Units | |||
Share-based Payment Awards | |||
Stock-based compensation expense | $ 26 | $ 45 | $ 29 |
Deferred Compensation Plans (De
Deferred Compensation Plans (Deferred Restricted Stock Units) (Details) - RSUs - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Shares | |||
Awards at beginning of period | 121 | ||
Granted | 34 | ||
Conversion to common stock | (47) | ||
Canceled | (3) | ||
Awards at end of period | 105 | 121 | |
Weighted Average Grant Date Fair Value (Per Share) | |||
RSUs at beginning of period | $ 25.52 | ||
Granted | 34.76 | ||
Conversions to common stock | 23.57 | ||
Canceled | 28.72 | ||
RSUs at end of period | $ 29.26 | $ 25.52 | |
RSUs that were vested or expected to vest (shares) | 98 | ||
Weighted average grant date fair value of RSUs that were vested or expected to vest (per share) | $ 29.17 | ||
Weighted average price for awards other than options granted (per share) | $ 32.58 | $ 22.72 | |
Weighted average remaining term | 1 year 1 month | ||
Intrinsic value of outstanding awards other than options | $ 3,144 | ||
Total intrinsic value of RSUs converted to common stock | $ 1,646 | $ 1,461 | $ 939 |
Deferred Compensation Plans (Un
Deferred Compensation Plans (Unvested Restricted Stock Units) (Details) - RSUs - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Shares | |||
Unvested RSUs at beginning of period | 87 | ||
Granted | 34 | ||
Vested | (48) | ||
Canceled | (3) | ||
Unvested RSUs at end of period | 70 | 87 | |
Weighted Average Grant Date Fair Value (Per Share) | |||
Unvested RSUs at beginning of period | $ 26.44 | ||
Granted | 34.76 | ||
Vested | 27.06 | ||
Canceled | 28.72 | ||
Unvested RSUs at end of period | $ 29.91 | $ 26.44 | |
Unvested RSUs that were expected to vest (shares) | 63 | ||
Weighted average grant date fair value of unvested RSUs that were expected to vest (per share) | $ 29.84 | ||
Aggregate fair value of awards vested | $ 1,693 | $ 1,517 | $ 842 |
Deferred Compensation Plans 129
Deferred Compensation Plans (Stock Options) (Details) - Stock Options - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Assumptions | |||
Risk-free interest rate | 0.60% | ||
Expected life | 3 years 11 months | ||
Expected stock price volatility | 32.00% | ||
Expected dividend yield | 0.90% | ||
Weighted average fair value of options granted (per share) | $ 5.41 | ||
Number of Options | |||
Options outstanding at beginning of period | 19 | ||
Canceled | (2) | ||
Options outstanding at end of period | 17 | 19 | |
Options exercisable at end of period | 15 | ||
Weighted Average Exercise Price (Per Share) | |||
Options outstanding at beginning of period | $ 51.3 | ||
Canceled | 45.32 | ||
Options outstanding at end of period | 52.26 | $ 51.3 | |
Options exercisable at end of period | $ 55.02 | ||
Options vested | 16 | ||
Options Vested - Weighted Average Exercise Price (per share) | $ 52.43 | ||
Total intrinsic value exercises during period | $ 2 | $ 2 | |
Options, weighted average exercise price | $ 30.01 | $ 24.68 | |
Intrinsic value of in-the-money exercisable stock options | $ 28 | ||
Minimum | |||
Fair Value Assumptions | |||
Award vesting period | 3 years | ||
$22.00 - $39.99 | |||
Number of Options | |||
Options outstanding at end of period | 6 | ||
Options exercisable at end of period | 4 | ||
Weighted Average Exercise Price (Per Share) | |||
Options outstanding at end of period | $ 26.85 | ||
Options exercisable at end of period | $ 28.13 | ||
Exercise Price Range | |||
Options outstanding, average remaining life | 2 years | ||
Options exercisable, average remaining life | 2 years | ||
$50.00 - $59.99 | |||
Number of Options | |||
Options outstanding at end of period | 1 | ||
Options exercisable at end of period | 1 | ||
Weighted Average Exercise Price (Per Share) | |||
Options outstanding at end of period | $ 52.43 | ||
Options exercisable at end of period | $ 52.43 | ||
Exercise Price Range | |||
Options outstanding, average remaining life | 4 months | ||
Options exercisable, average remaining life | 4 months | ||
$60.00 - $76.99 | |||
Number of Options | |||
Options outstanding at end of period | 10 | ||
Options exercisable at end of period | 10 | ||
Weighted Average Exercise Price (Per Share) | |||
Options outstanding at end of period | $ 66.75 | ||
Options exercisable at end of period | $ 66.75 | ||
Exercise Price Range | |||
Options outstanding, average remaining life | 11 months | ||
Options exercisable, average remaining life | 11 months |
Deferred Compensation Plans (Pe
Deferred Compensation Plans (Performance-based Stock Units) (Details) - Performance-based Stock Units - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Assumptions | |||
Risk-free interest rate | 0.90% | 0.80% | 0.40% |
Expected stock price volatility | 29.60% | 44.20% | 45.40% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock-based Compensation Awards Roll Forward | |||
Awards at beginning of period | 4 | ||
Granted | 2 | ||
Conversion to common stock | (2) | ||
Awards at end of period | 4 | 4 | |
MS Average ROE | |||
Share-based Payment Awards | |||
Fair value of equity instruments other than options (per share) | $ 34.58 | $ 32.81 | $ 22.85 |
MS Average ROE, Less than 5% | Minimum | |||
Share-based Payment Awards | |||
Multiplier | 0 | 0 | 0 |
MS Average ROE, 13% or More | Maximum | |||
Share-based Payment Awards | |||
Multiplier | 2 | ||
MS Average ROE, 11.5% or More | Maximum | |||
Share-based Payment Awards | |||
Multiplier | 1.5 | 1.5 | |
TSR | |||
Share-based Payment Awards | |||
Fair value of equity instruments other than options (per share) | $ 38.07 | $ 37.72 | $ 34.65 |
Relative TSR, Less than -50% | Minimum | |||
Share-based Payment Awards | |||
Multiplier | 0 | 0 | 0 |
Relative TSR, 25% or more | Maximum | |||
Share-based Payment Awards | |||
Multiplier | 1.5 | 1.5 | |
Relative TSR, 50% or more | Maximum | |||
Share-based Payment Awards | |||
Multiplier | 2 |
Deferred Compensation Plans 131
Deferred Compensation Plans (Deferred Cash-based Compensation Plans) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Cash-based Compensation Plans | ||||
Compensation expense deferral adjustments | $ 1,100 | $ 772 | $ 2,165 | $ 2,262 |
Deferred Cash-based Awards | ||||
Deferred Cash-based Compensation Plans | ||||
Compensation expense deferral adjustments | 660 | 1,757 | 1,490 | |
Unrecognized compensation cost related to unvested deferred cash-based awards | 541 | |||
Unrecognized compensation cost related to deferred cash-base awards will be recognized in 2016 | 291 | |||
Unrecognized compensation cost related to deferred cash-base awards will be recognized in 2017 | 103 | |||
Unrecognized compensation cost related to deferred cash-base awards will be recognized thereafter | 147 | |||
Deferred Cash-based Awards | Employee Who Satisfied Retirement-eligible Requirements under Award Terms that Do Not Contain a Service Period | ||||
Deferred Cash-based Compensation Plans | ||||
Compensation expense deferral adjustments | 144 | 92 | 78 | |
Return on Referenced Investments | ||||
Deferred Cash-based Compensation Plans | ||||
Compensation expense deferral adjustments | $ 112 | $ 408 | $ 772 |
Deferred Compensation Plans (20
Deferred Compensation Plans (2015 Performance Year Deferred Compensation Awards) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Subsequent Event | |
Stock-based awards, 2016 | $ 453 |
Stock-based awards, 2017 | 198 |
Stock-based award, Thereafter | 162 |
Stock-based award, Total | 813 |
Deferred cash-based awards, 2016 | 545 |
Deferred cash-based awards, 2017 | 298 |
Deferred cash-based awards, Thereafter | 128 |
Deferred cash-based awards, Total | 971 |
Total, 2016 | 998 |
Total, 2017 | 496 |
Total, Thereafter | 290 |
Total | $ 1,784 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Information about Plan Assets | |||
Accumulated benefit obligation | $ 3,592 | $ 3,988 | |
Estimated contributions by employer in next year | $ 50 | ||
U.S. Qualified Plan | |||
Information about Plan Assets | |||
Percentage as to total pension plan assets | 89.00% | ||
Morgan Stanley 401(k) Plan | |||
Defined Contribution Pension and Other Postretirement Plans | |||
Description of employer matching contribution | Eligible U.S. employees receive discretionary 401(k) matching cash contributions as determined annually by the Company. For 2015 and 2014, the Company made a $1 for $1 Company match up to 4% of eligible pay, up to the Internal Revenue Service (“IRS”) limit. | ||
Maximum percent of employer matching contributions | 4.00% | ||
Pre-tax 401(k) expense | $ 255 | 256 | $ 242 |
Morgan Stanley 401(k) Plan | Eligible U.S. Employees with Eligible Pay Less than or Equal to $100,000 | |||
Defined Contribution Pension and Other Postretirement Plans | |||
Percent of employer matching contribution of eligible pay | 2.00% | ||
Pension | |||
Information about Plan Assets | |||
Estimated prior-service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit expense over 2016 | $ 1 | ||
Estimated net loss that will be amortized from accumulated other comprehensive loss into net periodic benefit expense over 2016 | 12 | ||
Defined Contribution Pension and Other Postretirement Plans | |||
Pre-tax 401(k) expense | 111 | $ 117 | $ 111 |
Other Postretirement | |||
Information about Plan Assets | |||
Estimated prior-service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit expense over 2016 | $ 17 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Expense) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension | ||||
Components of Net Periodic Benefit Expense (Income) | ||||
Service cost, benefits earned during the period | $ 19 | $ 20 | $ 23 | |
Interest cost on projected benefit obligation | 152 | 154 | 151 | |
Expected return on plan assets | (120) | (110) | (114) | |
Net amortization of prior service cost | (1) | 0 | 0 | |
Net amortization of actuarial loss | 26 | 22 | 36 | |
Curtailment gain | 0 | 3 | 0 | |
Settlement loss | 2 | 2 | 1 | |
Net periodic benefit expense (income) | 78 | 91 | 97 | |
Amounts Recognized in Other Comprehensive Loss (Income) on Pre-tax Basis | ||||
Net loss (gain) | (212) | 18 | 87 | |
Prior service cost (credit) | (1) | 2 | 3 | |
Amortization of prior service credit | 1 | 0 | 0 | |
Amortization of net loss | (28) | (27) | (37) | |
Total recognized in other comprehensive loss (income) | $ (240) | $ (7) | $ 53 | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense | ||||
Discount rate | 3.86% | 4.74% | 3.95% | |
Expected long-term rate of return on plan assets | 3.59% | 3.75% | 3.73% | |
Rate of future compensation increases | 2.85% | 1.06% | 0.98% | |
Other Postretirement | ||||
Components of Net Periodic Benefit Expense (Income) | ||||
Service cost, benefits earned during the period | $ 1 | $ 2 | $ 4 | |
Interest cost on projected benefit obligation | 3 | 5 | 7 | |
Expected return on plan assets | 0 | 0 | 0 | |
Net amortization of prior service cost | (18) | (14) | (13) | |
Net amortization of actuarial loss | 0 | 0 | 3 | |
Curtailment gain | 0 | 0 | 0 | |
Settlement loss | 0 | 0 | 0 | |
Net periodic benefit expense (income) | (14) | (7) | 1 | |
Amounts Recognized in Other Comprehensive Loss (Income) on Pre-tax Basis | ||||
Net loss (gain) | 3 | 9 | (52) | |
Prior service cost (credit) | 9 | (64) | 0 | |
Amortization of prior service credit | 18 | 14 | 13 | |
Amortization of net loss | 0 | 0 | (3) | |
Total recognized in other comprehensive loss (income) | $ 30 | $ (41) | $ (42) | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense | ||||
Discount rate | 3.69% | 3.77% | 3.77% | 3.88% |
Employee Benefit Plans (Reconci
Employee Benefit Plans (Reconciliation of Changes in Benefit Obligation and Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension | |||
Reconciliation of benefit obligation: | |||
Beginning balance | $ 4,007 | $ 3,330 | |
Service cost | 19 | 20 | $ 23 |
Interest cost | 152 | 154 | 151 |
Actuarial loss (gain) excluding mortality assumption | (267) | 555 | |
Plan curtailments | (9) | (1) | |
Plan amendments | (1) | 2 | |
Plan settlements | (29) | (8) | |
Change in mortality assumption | (46) | 203 | |
Benefits paid | (194) | (213) | |
Other, including foreign currency exchange rate changes | (28) | (35) | |
Ending balance | 3,604 | 4,007 | 3,330 |
Reconciliation of fair value of plan assets: | |||
Beginning balance | 3,705 | 2,867 | |
Actual return on plan assets | 9 | 850 | |
Employer contributions | 31 | 244 | |
Benefits paid | (194) | (213) | |
Plan settlements | (29) | (8) | |
Other, including foreign currency exchange rate changes | (25) | (35) | |
Ending balance | 3,497 | 3,705 | 2,867 |
Funded (unfunded) status | (107) | (302) | |
Other Postretirement | |||
Reconciliation of benefit obligation: | |||
Beginning balance | 75 | 128 | |
Service cost | 1 | 2 | 4 |
Interest cost | 3 | 5 | 7 |
Actuarial loss (gain) excluding mortality assumption | 4 | 5 | |
Plan curtailments | 0 | 0 | |
Plan amendments | 9 | (64) | |
Plan settlements | 0 | 0 | |
Change in mortality assumption | (1) | 4 | |
Benefits paid | (4) | (5) | |
Other, including foreign currency exchange rate changes | 0 | 0 | |
Ending balance | 87 | 75 | 128 |
Reconciliation of fair value of plan assets: | |||
Beginning balance | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 4 | 5 | |
Benefits paid | (4) | (5) | |
Plan settlements | 0 | 0 | |
Other, including foreign currency exchange rate changes | 0 | 0 | |
Ending balance | 0 | 0 | $ 0 |
Funded (unfunded) status | $ (87) | (75) | |
U.S. Qualified Plan | |||
Reconciliation of fair value of plan assets: | |||
Employer contributions | $ 200 |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Funded Status) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Pension | ||
Funded status: | ||
Funded (unfunded) status | $ (107) | $ (302) |
Amounts recognized in the consolidated statements of financial condition consist of: | ||
Assets | 382 | 224 |
Liabilities | (489) | (526) |
Net amount recognized | (107) | (302) |
Amounts recognized in accumulated other comprehensive loss consist of: | ||
Prior service cost (credit) | (1) | (1) |
Net loss (gain) | 626 | 866 |
Net loss (gain) recognized | 625 | 865 |
Other Postretirement | ||
Funded status: | ||
Funded (unfunded) status | (87) | (75) |
Amounts recognized in the consolidated statements of financial condition consist of: | ||
Assets | 0 | 0 |
Liabilities | (87) | (75) |
Net amount recognized | (87) | (75) |
Amounts recognized in accumulated other comprehensive loss consist of: | ||
Prior service cost (credit) | (34) | (61) |
Net loss (gain) | (2) | (5) |
Net loss (gain) recognized | $ (36) | $ (66) |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets) (Details) - Pension - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets | ||
Projected benefit obligation | $ 543 | $ 626 |
Fair value of plan assets | 54 | 100 |
Pension Plans with Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | ||
Accumulated benefit obligation | 531 | 588 |
Fair value of plan assets | $ 54 | $ 82 |
Employee Benefit Plans (Assumpt
Employee Benefit Plans (Assumptions) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension | ||
Weighted Average Assumptions Used in Calculating Benefit Obligation | ||
Discount rate | 4.27% | 3.86% |
Rate of future compensation increases | 3.19% | 2.85% |
Other Postretirement | ||
Weighted Average Assumptions Used in Calculating Benefit Obligation | ||
Discount rate | 4.13% | 3.69% |
Assumed Health Care Cost Trend Rates | ||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2,038 | 2,029 |
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates | ||
Effect on postretirement benefit obligation, 1% increase | $ 3 | |
Effect on postretirement benefit obligation, 1% decrease | $ (3) | |
Other Postretirement | Medical | ||
Assumed Health Care Cost Trend Rates | ||
Health care cost trend rate assumed for next year | 6.25% | |
Other Postretirement | Medical | Minimum | ||
Assumed Health Care Cost Trend Rates | ||
Health care cost trend rate assumed for next year | 6.88% | |
Other Postretirement | Medical | Maximum | ||
Assumed Health Care Cost Trend Rates | ||
Health care cost trend rate assumed for next year | 7.23% | |
Other Postretirement | Prescription | ||
Assumed Health Care Cost Trend Rates | ||
Health care cost trend rate assumed for next year | 11.00% | 7.87% |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Value of Net Pension Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | $ 3,497 | $ 3,705 | |
Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 3,662 | 3,860 | |
Investments | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 3,608 | 3,833 | |
Cash and Cash Equivalents | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 28 | 63 | |
U.S. Government and Agency Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 1,661 | 1,597 | |
U.S. Treasury Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 1,398 | 1,332 | |
U.S. Agency Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 263 | 265 | |
Corporate and Other Debt | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 24 | 64 | |
State and Municipal Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 2 | 2 | |
Collateralized Debt Obligations | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 22 | 62 | |
Derivative-related Cash Collateral Receivable | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 2 | |
Other Investments | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 35 | 36 | |
Receivables | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 54 | 27 | |
Other Receivables | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 54 | 27 | |
Liabilities | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 165 | 155 | |
Derivative Related Cash Collateral Payable | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 2 | |
Other Liabilities | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 100 | 120 | |
Derivative Contracts | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 65 | 33 | |
Derivative Contracts | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 224 | 292 | |
Commingled Trust Funds | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 1,298 | 1,432 | |
Commingled Trust Funds | Money Market Funds | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 59 | 152 | |
Commingled Trust Funds | Fixed Income Funds | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 1,239 | 1,280 | |
Foreign Funds | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 338 | 347 | |
Foreign Funds | Fixed Income Funds | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 149 | 158 | |
Foreign Funds | Targeted Cash Flow Funds | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 91 | 136 | |
Foreign Funds | Liquidity Funds | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 98 | 53 | |
Level 1 | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 1,426 | 1,395 | |
Level 1 | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 1,426 | 1,395 | |
Level 1 | Investments | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 1,426 | 1,395 | |
Level 1 | Cash and Cash Equivalents | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 28 | 63 | |
Level 1 | U.S. Government and Agency Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 1,398 | 1,332 | |
Level 1 | U.S. Treasury Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 1,398 | 1,332 | |
Level 1 | U.S. Agency Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | Corporate and Other Debt | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | State and Municipal Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | Collateralized Debt Obligations | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | Derivative-related Cash Collateral Receivable | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | Other Investments | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | Receivables | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | Other Receivables | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | Liabilities | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | Derivative Related Cash Collateral Payable | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | Other Liabilities | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | Derivative Contracts | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | Derivative Contracts | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | Commingled Trust Funds | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 1 | Foreign Funds | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 2 | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 2,036 | 2,274 | |
Level 2 | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 2,201 | 2,429 | |
Level 2 | Investments | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 2,147 | 2,402 | |
Level 2 | Cash and Cash Equivalents | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 2 | U.S. Government and Agency Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 263 | 265 | |
Level 2 | U.S. Treasury Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 2 | U.S. Agency Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 263 | 265 | |
Level 2 | Corporate and Other Debt | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 24 | 64 | |
Level 2 | State and Municipal Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 2 | 2 | |
Level 2 | Collateralized Debt Obligations | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 22 | 62 | |
Level 2 | Derivative-related Cash Collateral Receivable | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 2 | |
Level 2 | Other Investments | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 2 | Receivables | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 54 | 27 | |
Level 2 | Other Receivables | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 54 | 27 | |
Level 2 | Liabilities | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 165 | 155 | |
Level 2 | Derivative Related Cash Collateral Payable | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 2 | |
Level 2 | Other Liabilities | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 100 | 120 | |
Level 2 | Derivative Contracts | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 65 | 33 | |
Level 2 | Derivative Contracts | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 224 | 292 | |
Level 2 | Commingled Trust Funds | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 1,298 | 1,432 | |
Level 2 | Foreign Funds | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 338 | 347 | |
Level 3 | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 35 | 36 | $ 38 |
Level 3 | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 35 | 36 | |
Level 3 | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 35 | 36 | |
Level 3 | Investments | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 35 | 36 | |
Level 3 | Cash and Cash Equivalents | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | U.S. Government and Agency Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | U.S. Treasury Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | U.S. Agency Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | Corporate and Other Debt | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | State and Municipal Securities | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | Collateralized Debt Obligations | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | Derivative-related Cash Collateral Receivable | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | Other Investments | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 35 | 36 | |
Level 3 | Receivables | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | Other Receivables | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | Liabilities | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | Derivative Related Cash Collateral Payable | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | Other Liabilities | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | Derivative Contracts | Derivatives in Liability Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | Derivative Contracts | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | Commingled Trust Funds | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | 0 | 0 | |
Level 3 | Foreign Funds | Assets | Derivatives in Asset Position | |||
Pension and Other Postretirement Plans | |||
Net pension assets | $ 0 | $ 0 |
Employee Benefit Plans (Changes
Employee Benefit Plans (Changes in Level 3 Pension Assets) (Details) - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension and Other Postretirement Plans | ||
Beginning balance | $ 36 | $ 38 |
Actual return on plan assets related to assets held at end of period | (4) | (5) |
Actual return on plan assets related to assets sold during the year | 0 | 0 |
Purchases, sales, other settlements and issuances, net | 3 | 3 |
Net transfers in and/or (out) of Level 3 | 0 | 0 |
Ending balance | $ 35 | $ 36 |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Pension | |
Pension and Other Postretirement Plans | |
2,016 | $ 153 |
2,017 | 139 |
2,018 | 136 |
2,019 | 141 |
2,020 | 150 |
2021-2025 | 858 |
Other Postretirement | |
Pension and Other Postretirement Plans | |
2,016 | 5 |
2,017 | 6 |
2,018 | 6 |
2,019 | 6 |
2,020 | 7 |
2021-2025 | $ 32 |
Income Taxes (Components of Pro
Income Taxes (Components of Provision for (Benefit from) Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||||||||||
U.S. federal | $ 239 | $ (604) | $ 229 | ||||||||
U.S. state and local | $ 144 | $ 260 | $ 164 | ||||||||
Non-U.S. | |||||||||||
Current income tax expense (benefit), total | $ 1,006 | $ 150 | $ 996 | ||||||||
Deferred: | |||||||||||
U.S. federal | 1,031 | (207) | (3) | ||||||||
U.S. state and local | 43 | (56) | 1 | ||||||||
Deferred income tax expense (benefit), total | 1,194 | (240) | (94) | ||||||||
Provision for (benefit from) income taxes from continuing operations | $ 496 | $ 423 | $ 894 | $ 387 | $ (1,353) | $ 463 | $ 15 | $ 785 | 2,200 | (90) | 902 |
Provision for (benefit from) income taxes from discontinued operations | $ (3) | $ (2) | $ 0 | $ (3) | $ 0 | $ (3) | $ (1) | $ (1) | (7) | (5) | (29) |
Net income tax provision (benefit) to Paid-in capital related to employee stock compensation transactions | (203) | (6) | 121 | ||||||||
United Kingdom | |||||||||||
Current: | |||||||||||
Non-U.S. | 247 | 88 | 178 | ||||||||
Deferred: | |||||||||||
Non-U.S. | (56) | (31) | (75) | ||||||||
Japan | |||||||||||
Current: | |||||||||||
Non-U.S. | 19 | 114 | 88 | ||||||||
Deferred: | |||||||||||
Non-U.S. | 58 | 56 | 262 | ||||||||
Hong Kong | |||||||||||
Current: | |||||||||||
Non-U.S. | 24 | 34 | 36 | ||||||||
Deferred: | |||||||||||
Non-U.S. | 50 | 9 | (14) | ||||||||
Other | |||||||||||
Current: | |||||||||||
Non-U.S. | 333 | 258 | 301 | ||||||||
Deferred: | |||||||||||
Non-U.S. | 68 | (11) | (265) | ||||||||
Brazil | |||||||||||
Deferred: | |||||||||||
Provision for (benefit from) income taxes from continuing operations | 62 | 44 | 59 | ||||||||
Mexico | |||||||||||
Deferred: | |||||||||||
Provision for (benefit from) income taxes from continuing operations | 68 | 38 | |||||||||
Netherlands | |||||||||||
Deferred: | |||||||||||
Provision for (benefit from) income taxes from continuing operations | 58 | ||||||||||
India | |||||||||||
Deferred: | |||||||||||
Provision for (benefit from) income taxes from continuing operations | 45 | $ 38 | 54 | ||||||||
Luxembourg | |||||||||||
Deferred: | |||||||||||
Provision for (benefit from) income taxes from continuing operations | $ (156) | ||||||||||
France | |||||||||||
Deferred: | |||||||||||
Provision for (benefit from) income taxes from continuing operations | $ 42 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Effective Income Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Rate Reconciliation, Percent | |||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | ||
U.S. state and local income taxes, net of U.S. federal income tax benefits | 1.40% | 6.50% | 2.30% | ||
Domestic tax credits | (1.50%) | (5.00%) | (3.20%) | ||
Tax exempt income | (0.20%) | (3.50%) | (2.50%) | ||
Non-U.S. earnings | |||||
Foreign Tax Rate Differential | (8.70%) | (22.50%) | (6.00%) | ||
Change in Reinvestment Assertion | 0.20% | 1.40% | (1.40%) | ||
Change in Foreign Tax Rates | 0.00% | 0.00% | 0.10% | ||
Valuation allowance | 0.00% | (38.70%) | 0.00% | ||
Non-deductible legal expenses | 0.00% | 25.50% | 0.90% | ||
Other | (0.30%) | (1.20%) | (5.40%) | ||
Effective income tax rate | 25.90% | (2.50%) | 19.80% | ||
Unrecognized Tax Benefits Period Increase / (Decrease) | $ (2,000) | ||||
Unrecognized Tax Benefits | $ 2,228 | $ 1,804 | 2,228 | $ 4,096 | $ 4,065 |
Amount of unrecognized tax benefits, amount if recognized, would favorably affect the effective tax rate in future periods | 1,000 | 1,100 | 1,000 | 1,400 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |||||
Aggregate discrete net tax expense (benefit) from continuing operations | $ (564) | $ (2,226) | $ (407) | ||
Effective income tax rate excluding effect of net discrete tax benefits | 32.50% | 59.50% | 28.70% | ||
Litigation and regulatory matters | |||||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |||||
Tax provision due to the impact of non-deductible expenses | $ 900 | ||||
Release of a deferred tax liability related to internal restructuring | |||||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |||||
Aggregate discrete net tax expense (benefit) from continuing operations | $ (1,380) | ||||
Remeasurement of reserves and related interest due to new information regarding the status of a multi-year tax authority examination | |||||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |||||
Aggregate discrete net tax expense (benefit) from continuing operations | (609) | $ (161) | |||
Establishment of Previously Unrecognized Deferred Tax Asset | |||||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |||||
Aggregate discrete net tax expense (benefit) from continuing operations | (92) | ||||
Tax planning Strategies to Optimize Foreign Tax Credit Utilization | |||||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |||||
Aggregate discrete net tax expense (benefit) from continuing operations | (73) | ||||
Retroactive Effective Date of American Taxpayer Relief Act of 2012 | |||||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |||||
Aggregate discrete net tax expense (benefit) from continuing operations | $ (81) | ||||
Planned Repatriation of Non-U.S. Earnings at Cost Lower Than Originally Estimated | |||||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |||||
Aggregate discrete net tax expense (benefit) from continuing operations | $ (564) | $ (237) |
Income Taxes (Significant Compo
Income Taxes (Significant Components of Deferred Tax Assets and Liabilities Balance) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Gross deferred tax assets: | ||
Tax credits and loss carryforwards | $ 1,987 | $ 3,833 |
Employee compensation and benefit plans | 3,514 | 3,715 |
Valuation and liability allowances | 846 | 661 |
Valuation of inventory, investments and receivables | 738 | 586 |
Other | 35 | 0 |
Total deferred tax assets | 7,120 | 8,795 |
Valuation allowance | 139 | 34 |
Deferred tax assets after valuation allowance | 6,981 | 8,761 |
Gross deferred tax liabilities: | ||
Non-U.S. operations | 269 | 925 |
Fixed assets | 716 | 565 |
Other | 0 | 65 |
Total deferred tax liabilities | 985 | 1,555 |
Net deferred tax assets | 5,996 | 7,206 |
Earnings attributable to foreign subsidiaries | 10,209 | 7,364 |
Deferred tax liability not recorded with respect to earnings attributable to foreign subsidiaries | 893 | 841 |
Deferred tax asset, tax credit carryforwards | $ 1,647 | $ 3,740 |
Income Taxes (Reconciliation145
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of period | $ 2,228 | $ 4,096 | $ 4,065 |
Increases based on tax positions related to the current period | 230 | 135 | 51 |
Increases based on tax positions related to prior periods | 114 | 100 | 267 |
Decreases based on tax positions related to prior periods | (753) | (2,080) | (141) |
Decreases related to settlements with taxing authorities | (7) | (19) | (146) |
Decreases related to a lapse of applicable statute of limitations | (8) | (4) | 0 |
Balance at end of period | 1,804 | 2,228 | 4,096 |
Amount of unrecognized tax benefits, amount if recognized, would favorably affect the effective tax rate in future periods | 1,100 | 1,000 | 1,400 |
Recognized interest expense (benefit) (net of federal and state income tax benefits) | 18 | (35) | 50 |
Interest expense accrued net of federal and state income tax benefits | $ 122 | 258 | $ 293 |
Unrecognized tax benefits decreased due to new information regarding the status of the IRS field examinations | $ (2,000) |
Income Taxes (Earliest Tax Year
Income Taxes (Earliest Tax Year Subject to Examination in Major Tax Jurisdictions) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
United States | |
Income Tax Examination | |
Tax Year | 1,999 |
New York State and City | |
Income Tax Examination | |
Tax Year | 2,007 |
Hong Kong | |
Income Tax Examination | |
Tax Year | 2,009 |
United Kingdom | |
Income Tax Examination | |
Tax Year | 2,010 |
Japan | |
Income Tax Examination | |
Tax Year | 2,013 |
Income Taxes (U.S. and Non-U.S.
Income Taxes (U.S. and Non-U.S. Components of Income Before Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes | |||
U.S. | $ 5,360 | $ 1,805 | $ 1,738 |
Non-U.S. | 3,135 | 1,786 | 2,820 |
Income (loss) from continuing operations before income taxes | $ 8,495 | $ 3,591 | $ 4,558 |
Segment and Geographic Infor148
Segment and Geographic Information (Selected Financial Information by Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information | |||||||||||
Total non-interest revenues | $ 6,701 | $ 7,005 | $ 9,045 | $ 9,311 | $ 7,161 | $ 8,350 | $ 8,341 | $ 8,688 | $ 32,062 | $ 32,540 | $ 31,715 |
Interest income | 5,835 | 5,413 | 5,209 | ||||||||
Interest expense | 2,742 | 3,678 | 4,431 | ||||||||
Net interest | 1,037 | 762 | 698 | 596 | 603 | 557 | 267 | 308 | 3,093 | 1,735 | 778 |
Net revenues | 7,738 | 7,767 | 9,743 | 9,907 | 7,764 | 8,907 | 8,608 | 8,996 | 35,155 | 34,275 | 32,493 |
Income (loss) from continuing operations before income taxes | 1,439 | 1,474 | 2,727 | 2,855 | (2,931) | 2,220 | 1,932 | 2,370 | 8,495 | 3,591 | 4,558 |
Provision for (benefit from) income taxes | 496 | 423 | 894 | 387 | (1,353) | 463 | 15 | 785 | 2,200 | (90) | 902 |
Income from continuing operations | 943 | 1,051 | 1,833 | 2,468 | (1,578) | 1,757 | 1,917 | 1,585 | 6,295 | 3,681 | 3,656 |
Discontinued operations: | |||||||||||
Income from discontinued operations before income taxes | (10) | (4) | (2) | (8) | (8) | (8) | (1) | (2) | (23) | (19) | (72) |
Provision for (benefit from) income taxes | (3) | (2) | 0 | (3) | 0 | (3) | (1) | (1) | (7) | (5) | (29) |
Income (loss) from discontinued operations | (7) | (2) | (2) | (5) | (8) | (5) | 0 | (1) | (16) | (14) | (43) |
Net income (loss) | 936 | 1,049 | 1,831 | 2,463 | (1,586) | 1,752 | 1,917 | 1,584 | 6,279 | 3,667 | 3,613 |
Net income applicable to redeemable noncontrolling interests | 0 | 0 | 222 | ||||||||
Net income applicable to nonredeemable noncontrolling interests | 28 | 31 | 24 | 69 | 44 | 59 | 18 | 79 | 152 | 200 | 459 |
Net income (loss) applicable to Morgan Stanley | $ 908 | $ 1,018 | $ 1,807 | $ 2,394 | $ (1,630) | $ 1,693 | $ 1,899 | $ 1,505 | 6,127 | 3,467 | 2,932 |
Segment Reporting Information, Additional Information | |||||||||||
Other Income tax benefit | 564 | 2,226 | 407 | ||||||||
Gain on sale of retail property space | 141 | ||||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information | |||||||||||
Total non-interest revenues | (213) | (200) | (233) | ||||||||
Interest income | (462) | (494) | (472) | ||||||||
Interest expense | (462) | (498) | (477) | ||||||||
Net interest | 0 | 4 | 5 | ||||||||
Net revenues | (213) | (196) | (228) | ||||||||
Income (loss) from continuing operations before income taxes | 0 | 0 | 0 | ||||||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | ||||||||
Income from continuing operations | 0 | 0 | 0 | ||||||||
Discontinued operations: | |||||||||||
Income from discontinued operations before income taxes | 0 | 0 | 1 | ||||||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | ||||||||
Income (loss) from discontinued operations | 0 | 0 | 1 | ||||||||
Net income (loss) | 0 | 0 | 1 | ||||||||
Net income applicable to redeemable noncontrolling interests | 0 | ||||||||||
Net income applicable to nonredeemable noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) applicable to Morgan Stanley | 0 | 0 | 1 | ||||||||
Institutional Securities | |||||||||||
Segment Reporting Information | |||||||||||
Total non-interest revenues | 17,800 | 17,463 | 16,620 | ||||||||
Interest income | 3,190 | 3,389 | 3,572 | ||||||||
Interest expense | 3,037 | 3,981 | 4,673 | ||||||||
Net interest | 153 | (592) | (1,101) | ||||||||
Net revenues | 17,953 | 16,871 | 15,519 | ||||||||
Income (loss) from continuing operations before income taxes | 4,671 | (58) | 946 | ||||||||
Provision for (benefit from) income taxes | 825 | (90) | (315) | ||||||||
Income from continuing operations | 3,846 | 32 | 1,261 | ||||||||
Discontinued operations: | |||||||||||
Income from discontinued operations before income taxes | (24) | (26) | (81) | ||||||||
Provision for (benefit from) income taxes | (7) | (7) | (29) | ||||||||
Income (loss) from discontinued operations | (17) | (19) | (52) | ||||||||
Net income (loss) | 3,829 | 13 | 1,209 | ||||||||
Net income applicable to redeemable noncontrolling interests | 1 | ||||||||||
Net income applicable to nonredeemable noncontrolling interests | 133 | 109 | 277 | ||||||||
Net income (loss) applicable to Morgan Stanley | 3,696 | (96) | 931 | ||||||||
Segment Reporting Information, Additional Information | |||||||||||
Other Income tax benefit | 564 | 839 | 407 | ||||||||
Gain on sale of retail property space | 84 | ||||||||||
Institutional Securities | TransMontaigne Inc. | |||||||||||
Segment Reporting Information, Additional Information | |||||||||||
Gain on business dispositions | 112 | ||||||||||
Wealth Management | |||||||||||
Segment Reporting Information | |||||||||||
Total non-interest revenues | 12,144 | 12,549 | 12,268 | ||||||||
Interest income | 3,105 | 2,516 | 2,100 | ||||||||
Interest expense | 149 | 177 | 225 | ||||||||
Net interest | 2,956 | 2,339 | 1,875 | ||||||||
Net revenues | 15,100 | 14,888 | 14,143 | ||||||||
Income (loss) from continuing operations before income taxes | 3,332 | 2,985 | 2,604 | ||||||||
Provision for (benefit from) income taxes | 1,247 | (207) | 910 | ||||||||
Income from continuing operations | 2,085 | 3,192 | 1,694 | ||||||||
Discontinued operations: | |||||||||||
Income from discontinued operations before income taxes | 0 | 0 | (1) | ||||||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | ||||||||
Income (loss) from discontinued operations | 0 | 0 | (1) | ||||||||
Net income (loss) | 2,085 | 3,192 | 1,693 | ||||||||
Net income applicable to redeemable noncontrolling interests | 221 | ||||||||||
Net income applicable to nonredeemable noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) applicable to Morgan Stanley | 2,085 | 3,192 | 1,472 | ||||||||
Segment Reporting Information, Additional Information | |||||||||||
Other Income tax benefit | 1,390 | ||||||||||
Gain on sale of retail property space | 40 | ||||||||||
Investment Management | |||||||||||
Segment Reporting Information | |||||||||||
Total non-interest revenues | 2,331 | 2,728 | 3,060 | ||||||||
Interest income | 2 | 2 | 9 | ||||||||
Interest expense | 18 | 18 | 10 | ||||||||
Net interest | (16) | (16) | (1) | ||||||||
Net revenues | 2,315 | 2,712 | 3,059 | ||||||||
Income (loss) from continuing operations before income taxes | 492 | 664 | 1,008 | ||||||||
Provision for (benefit from) income taxes | 128 | 207 | 307 | ||||||||
Income from continuing operations | 364 | 457 | 701 | ||||||||
Discontinued operations: | |||||||||||
Income from discontinued operations before income taxes | 1 | 7 | 9 | ||||||||
Provision for (benefit from) income taxes | 0 | 2 | 0 | ||||||||
Income (loss) from discontinued operations | 1 | 5 | 9 | ||||||||
Net income (loss) | 365 | 462 | 710 | ||||||||
Net income applicable to redeemable noncontrolling interests | 0 | ||||||||||
Net income applicable to nonredeemable noncontrolling interests | 19 | 91 | 182 | ||||||||
Net income (loss) applicable to Morgan Stanley | $ 346 | 371 | $ 528 | ||||||||
Segment Reporting Information, Additional Information | |||||||||||
Gain on sale of retail property space | $ 17 |
Segment and Geographic Infor149
Segment and Geographic Information (Assets by Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information | ||
Assets | $ 787,465 | $ 801,510 |
Reduction in nonredeemable noncontrolling interests primarily related to deconsolidation of certain legal entities associated with a real estate fund | 191 | 1,606 |
Real Estate Funds and Other Funds | ||
Segment Reporting Information | ||
Reduction in nonredeemable noncontrolling interests primarily related to deconsolidation of certain legal entities associated with a real estate fund | 244 | 1,600 |
Institutional Securities | ||
Segment Reporting Information | ||
Assets | 602,714 | 630,341 |
Wealth Management | ||
Segment Reporting Information | ||
Assets | 179,708 | 165,147 |
Investment Management | ||
Segment Reporting Information | ||
Assets | $ 5,043 | $ 6,022 |
Segment and Geographic Infor150
Segment and Geographic Information (Net Revenues by Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information | |||||||||||
Net Revenues | $ 7,738 | $ 7,767 | $ 9,743 | $ 9,907 | $ 7,764 | $ 8,907 | $ 8,608 | $ 8,996 | $ 35,155 | $ 34,275 | $ 32,493 |
Americas | |||||||||||
Segment Reporting Information | |||||||||||
Net Revenues | 25,080 | 25,140 | 23,358 | ||||||||
EMEA | |||||||||||
Segment Reporting Information | |||||||||||
Net Revenues | 5,353 | 4,772 | 4,542 | ||||||||
Asia-Pacific | |||||||||||
Segment Reporting Information | |||||||||||
Net Revenues | $ 4,722 | $ 4,363 | $ 4,593 |
Segment and Geographic Infor151
Segment and Geographic Information (Total Assets by Geographic Information) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information | ||
Assets | $ 787,465 | $ 801,510 |
Americas | ||
Segment Reporting Information | ||
Assets | 569,369 | 622,556 |
Europe, Middle East and Africa | ||
Segment Reporting Information | ||
Assets | 146,177 | 104,152 |
Asia-Pacific | ||
Segment Reporting Information | ||
Assets | $ 71,919 | $ 74,802 |
Parent Company (Narrative) (Det
Parent Company (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statement | |||
Cash payments for interest | $ 2,672 | $ 3,575 | $ 4,793 |
Cash payments for income taxes, net of refunds | 677 | 886 | 930 |
Parent Company | |||
Condensed Financial Statement | |||
Cash payments for interest | 3,959 | 3,652 | 3,733 |
Cash payments for income taxes, net of refunds | 255 | 187 | $ 268 |
Debt Instuments and Warrants | Parent Company | |||
Condensed Financial Statement | |||
Guarantees | 9,100 | 10,000 | |
Subsidiary Lease Obligations | Parent Company | |||
Condensed Financial Statement | |||
Guarantees | $ 1,100 | $ 1,300 |
Parent Company (Condensed State
Parent Company (Condensed Statements of Income and Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Revenues: | ||||||||||||
Trading | $ 10,114 | $ 9,377 | $ 9,359 | |||||||||
Investments | 541 | 836 | 1,777 | |||||||||
Total non-interest revenues | $ 6,701 | $ 7,005 | $ 9,045 | $ 9,311 | $ 7,161 | $ 8,350 | $ 8,341 | $ 8,688 | 32,062 | 32,540 | 31,715 | |
Interest income | 5,835 | 5,413 | 5,209 | |||||||||
Interest expense | 2,742 | 3,678 | 4,431 | |||||||||
Net interest | 1,037 | 762 | 698 | 596 | 603 | 557 | 267 | 308 | 3,093 | 1,735 | 778 | |
Net revenues | 7,738 | 7,767 | 9,743 | 9,907 | 7,764 | 8,907 | 8,608 | 8,996 | 35,155 | 34,275 | 32,493 | |
Non-interest expenses: | ||||||||||||
Non-interest expenses | 6,299 | 6,293 | 7,016 | 7,052 | 10,695 | 6,687 | 6,676 | 6,626 | 26,660 | 30,684 | 27,935 | |
Income (loss) before provision for (benefit from) income taxes | 8,495 | 3,591 | 4,558 | |||||||||
Provision for (benefit from) income taxes | 496 | 423 | 894 | 387 | (1,353) | 463 | 15 | 785 | 2,200 | (90) | 902 | |
Net income | 936 | 1,049 | 1,831 | 2,463 | (1,586) | 1,752 | 1,917 | 1,584 | 6,279 | 3,667 | 3,613 | |
Other comprehensive income (loss), net of tax: | ||||||||||||
Foreign currency translation adjustments | [1] | (304) | (491) | (348) | ||||||||
Change in net unrealized gains (losses) on available for sale securities | [2] | 209 | (433) | |||||||||
Comprehensive income (loss) | 5,719 | 3,312 | 2,355 | |||||||||
Preferred stock dividends and other | 155 | 79 | 142 | 80 | 119 | 64 | 79 | 56 | 456 | 315 | 277 | |
Earnings applicable to Morgan Stanley common shareholders | $ 753 | $ 939 | $ 1,665 | $ 2,314 | $ (1,749) | $ 1,629 | $ 1,820 | $ 1,449 | 5,671 | 3,152 | 2,655 | |
Parent Company | ||||||||||||
Revenues: | ||||||||||||
Dividends from non-bank subsidiaries | 4,942 | 2,641 | 1,113 | |||||||||
Trading | 574 | 601 | (635) | |||||||||
Investments | 0 | (1) | 0 | |||||||||
Other | 53 | 10 | 27 | |||||||||
Total non-interest revenues | 5,569 | 3,251 | 505 | |||||||||
Interest income | 3,055 | 2,594 | 2,783 | |||||||||
Interest expense | 4,073 | 3,970 | 4,053 | |||||||||
Net interest | (1,018) | (1,376) | (1,270) | |||||||||
Net revenues | 4,551 | 1,875 | (765) | |||||||||
Non-interest expenses: | ||||||||||||
Non-interest expenses | (195) | 214 | 185 | |||||||||
Income (loss) before provision for (benefit from) income taxes | 4,746 | 1,661 | (950) | |||||||||
Provision for (benefit from) income taxes | (83) | (423) | (354) | |||||||||
Net income (loss) before undistributed gain (loss) subsidiaries | 4,829 | 2,084 | (596) | |||||||||
Undistributed gain (loss) of subsidiaries | 1,298 | 1,383 | 3,528 | |||||||||
Net income | 6,127 | 3,467 | 2,932 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Foreign currency translation adjustments | (300) | (397) | (143) | |||||||||
Change in net unrealized gains (losses) on available for sale securities | (246) | 209 | (433) | |||||||||
Pension, postretirement and other related adjustments, provision for (benefit from) income taxes | 138 | 33 | (1) | |||||||||
Comprehensive income (loss) | 5,719 | 3,312 | 2,355 | |||||||||
Preferred stock dividends and other | 456 | 315 | 277 | |||||||||
Earnings applicable to Morgan Stanley common shareholders | $ 5,671 | $ 3,152 | $ 2,655 | |||||||||
[1] | Amounts include provision for (benefit from) income taxes of $ 185 million, $ 352 million and $ 351 million for 2015 , 2014 and 2013 , respectively. | |||||||||||
[2] | Amounts include provision for (benefit from) income taxes of $ (143) million, $ 142 million and $ (296) million for 2015 , 2014 and 2013 , respectively. (3) Amounts include provision for (benefit from) income taxes of $ 73 million, $ 20 million and $ 11 million for 2015 , 2014 and 2013 , respectively. |
Parent Company (Condensed St154
Parent Company (Condensed Statements of Financial Condition) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Cash and due from banks | $ 19,827 | $ 21,381 | $ 16,602 | |
Interest bearing deposits with banks | 34,256 | 25,603 | 43,281 | |
Trading assets, fair value | 228,280 | 256,801 | ||
Equity investment in subsidiaries: | ||||
Other assets | 9,043 | 10,742 | ||
Total assets | 787,465 | 801,510 | ||
Liabilities | ||||
Short-term borrowings | 2,173 | 2,261 | ||
Trading liabilities, at fair value | 109,139 | 107,381 | ||
Other liabilities and accrued expenses | 18,711 | 19,441 | ||
Long-term borrowings | 153,768 | 152,772 | ||
Total liabilities | $ 711,281 | $ 729,406 | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Preferred stock | $ 7,520 | $ 6,020 | ||
Common stock, $0.01 par value: Shares authorized: 3,500,000,000 at December 31, 2015 and December 31, 2014; Shares issued: 2,038,893,979 at December 31, 2015 and December 31, 2014; Shares outstanding: 1,920,024,027 and 1,950,980,142 at December 31, 2015 and December 31, 2014, respectively | 20 | 20 | ||
Additional Paid-in capital | 24,153 | 24,249 | ||
Retained earnings | 49,204 | 44,625 | ||
Employee stock trusts | 2,409 | 2,127 | ||
Accumulated other comprehensive income (loss) | (1,656) | (1,248) | (1,093) | $ (516) |
Common stock held in treasury, at cost, $0.01 par value: Shares outstanding: 118,869,952 and 87,913,837 at December 31, 2015 and December 31, 2014, respectively | (4,059) | (2,766) | ||
Common stock issued to employee trusts | (2,409) | (2,127) | ||
Total Morgan Stanley shareholders' equity | 75,182 | 70,900 | ||
Total liabilities and equity | 787,465 | 801,510 | ||
Parent Company | ||||
Assets | ||||
Cash and due from banks | 5,169 | 5,068 | 2,296 | |
Deposits with banking subsidiaries | 4,311 | 4,556 | 7,070 | |
Interest bearing deposits with banks | 2,421 | 1,126 | $ 6,846 | |
Trading assets, fair value | 354 | 5,014 | ||
Securities purchased under agreement to resell with affiliate | 47,060 | 41,601 | ||
Advances to subsidiaries: | ||||
Bank and bank holding company | 18,380 | 19,982 | ||
Non-bank | 106,192 | 112,863 | ||
Equity investment in subsidiaries: | ||||
Bank and bank holding company | 25,787 | 24,573 | ||
Non-bank | 34,927 | 34,649 | ||
Other assets | 6,259 | 7,805 | ||
Total assets | 250,860 | 257,237 | ||
Liabilities | ||||
Short-term borrowings | 40 | 695 | ||
Trading liabilities, at fair value | 138 | 4,042 | ||
Payables to subsidiaries | 29,220 | 35,517 | ||
Other liabilities and accrued expenses | 2,189 | 2,342 | ||
Long-term borrowings | 144,091 | 143,741 | ||
Total liabilities | 175,678 | 186,337 | ||
Equity | ||||
Preferred stock | 7,520 | 6,020 | ||
Common stock, $0.01 par value: Shares authorized: 3,500,000,000 at December 31, 2015 and December 31, 2014; Shares issued: 2,038,893,979 at December 31, 2015 and December 31, 2014; Shares outstanding: 1,920,024,027 and 1,950,980,142 at December 31, 2015 and December 31, 2014, respectively | 20 | 20 | ||
Additional Paid-in capital | 24,153 | 24,249 | ||
Retained earnings | 49,204 | 44,625 | ||
Employee stock trusts | 2,409 | 2,127 | ||
Accumulated other comprehensive income (loss) | (1,656) | (1,248) | ||
Common stock held in treasury, at cost, $0.01 par value: Shares outstanding: 118,869,952 and 87,913,837 at December 31, 2015 and December 31, 2014, respectively | (4,059) | (2,766) | ||
Common stock issued to employee trusts | (2,409) | (2,127) | ||
Total Morgan Stanley shareholders' equity | 75,182 | 70,900 | ||
Total liabilities and equity | $ 250,860 | $ 257,237 |
Parent Company (Condensed St155
Parent Company (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ 936 | $ 1,049 | $ 1,831 | $ 2,463 | $ (1,586) | $ 1,752 | $ 1,917 | $ 1,584 | $ 6,279 | $ 3,667 | $ 3,613 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Deferred income taxes | 1,189 | (231) | (117) | ||||||||
Compensation payable in common stock and stock options | 1,104 | 1,260 | 1,180 | ||||||||
Amortization | (1,433) | (1,161) | (1,511) | ||||||||
Other operating adjustments | 322 | (72) | 142 | ||||||||
Change in assets and liabilities: | |||||||||||
Trading assets, net of Trading liabilities | 29,471 | 20,619 | (23,598) | ||||||||
Net cash provided by (used for) operating activities | 3,674 | 1,086 | 35,009 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Net cash provided by investing activities | (19,995) | (35,324) | (24,461) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Net proceeds from (payments for) short-term borrowings | (88) | 119 | 4 | ||||||||
Proceeds from: | |||||||||||
Excess tax benefits associated with stock-based awards | 211 | 101 | 10 | ||||||||
Proceeds from preferred stock offering | 1,493 | 2,782 | 1,696 | ||||||||
Issuance of long-term borrowings | 34,182 | 36,740 | 27,939 | ||||||||
Payments for: | |||||||||||
Long-term borrowings | (27,289) | (33,103) | (38,742) | ||||||||
Repurchases of common stock and employee tax withholdings | (2,773) | (1,458) | (691) | ||||||||
Cash dividends | (1,455) | (904) | (475) | ||||||||
Net cash used for financing activities | 24,365 | 23,143 | 2,633 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (945) | (1,804) | (202) | ||||||||
Net increase (decrease) in cash and cash equivalents | 7,099 | (12,899) | 12,979 | ||||||||
Cash and cash equivalents, at beginning of period | 46,984 | 59,883 | 46,984 | 59,883 | 46,904 | ||||||
Cash and cash equivalents, at end of period | 54,083 | 46,984 | 54,083 | 46,984 | 59,883 | ||||||
Cash and cash equivalents include: | |||||||||||
Cash and due from banks | 19,827 | 21,381 | 19,827 | 21,381 | 16,602 | ||||||
Interest bearing deposits with banks | 34,256 | 25,603 | 34,256 | 25,603 | 43,281 | ||||||
Cash and cash equivalents, at end of period | 54,083 | 46,984 | 54,083 | 46,984 | 59,883 | ||||||
Parent Company | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | 6,127 | 3,467 | 2,932 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Deferred income taxes | 63 | 98 | (303) | ||||||||
Compensation payable in common stock and stock options | 1,104 | 1,260 | 1,180 | ||||||||
Amortization | (83) | (182) | (47) | ||||||||
Undistributed (gain) loss of subsidiaries | (1,298) | (1,383) | (3,528) | ||||||||
Change in assets and liabilities: | |||||||||||
Trading assets, net of Trading liabilities | (2,958) | 2,307 | (7,332) | ||||||||
Other assets | 1,474 | (490) | (165) | ||||||||
Other liabilities and accrued expenses | (1,711) | 488 | (4,192) | ||||||||
Net cash provided by (used for) operating activities | 2,718 | 5,565 | (11,455) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Advances to and investments in subsidiaries | 1,364 | (7,790) | 7,458 | ||||||||
Securities purchased under agreement to resell with affiliate | (5,459) | (7,853) | 14,745 | ||||||||
Net cash provided by investing activities | (4,095) | (15,643) | 22,203 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Net proceeds from (payments for) short-term borrowings | (655) | 189 | 279 | ||||||||
Proceeds from: | |||||||||||
Excess tax benefits associated with stock-based awards | 211 | 101 | 10 | ||||||||
Proceeds from preferred stock offering | 1,493 | 2,782 | 1,696 | ||||||||
Issuance of long-term borrowings | 28,575 | 33,031 | 22,944 | ||||||||
Payments for: | |||||||||||
Long-term borrowings | (22,803) | (28,917) | (31,928) | ||||||||
Repurchases of common stock and employee tax withholdings | (2,773) | (1,458) | (691) | ||||||||
Cash dividends | (1,455) | (904) | (475) | ||||||||
Net cash used for financing activities | 2,593 | 4,824 | (8,165) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (65) | (208) | (100) | ||||||||
Net increase (decrease) in cash and cash equivalents | 1,151 | (5,462) | 2,483 | ||||||||
Cash and cash equivalents, at beginning of period | $ 10,750 | $ 16,212 | 10,750 | 16,212 | 13,729 | ||||||
Cash and cash equivalents, at end of period | 11,901 | 10,750 | 11,901 | 10,750 | 16,212 | ||||||
Cash and cash equivalents include: | |||||||||||
Cash and due from banks | 5,169 | 5,068 | 5,169 | 5,068 | 2,296 | ||||||
Deposits with banking subsidiaries | 4,311 | 4,556 | 4,311 | 4,556 | 7,070 | ||||||
Interest bearing deposits with banks | 2,421 | 1,126 | 2,421 | 1,126 | 6,846 | ||||||
Cash and cash equivalents, at end of period | $ 11,901 | $ 10,750 | $ 11,901 | $ 10,750 | $ 16,212 |
Parent Company (Long Term Borro
Parent Company (Long Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Borrowings | ||
Senior debt | $ 140,494 | $ 139,565 |
Subordinated debt | 10,404 | 8,339 |
Total | 153,768 | 152,772 |
Parent Company | ||
Long-term Borrowings | ||
Senior debt | 130,817 | 130,533 |
Subordinated debt | 13,274 | 13,208 |
Total | $ 144,091 | $ 143,741 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 20, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Selected Quarterly Financial Information | ||||||||||||
Total non-interest revenues | $ 6,701 | $ 7,005 | $ 9,045 | $ 9,311 | $ 7,161 | $ 8,350 | $ 8,341 | $ 8,688 | $ 32,062 | $ 32,540 | $ 31,715 | |
Net interest | 1,037 | 762 | 698 | 596 | 603 | 557 | 267 | 308 | 3,093 | 1,735 | 778 | |
Revenues net of interest expenses | 7,738 | 7,767 | 9,743 | 9,907 | 7,764 | 8,907 | 8,608 | 8,996 | 35,155 | 34,275 | 32,493 | |
Total non-interest expenses | 6,299 | 6,293 | 7,016 | 7,052 | 10,695 | 6,687 | 6,676 | 6,626 | 26,660 | 30,684 | 27,935 | |
Income (loss) from continuing operations before income taxes | 1,439 | 1,474 | 2,727 | 2,855 | (2,931) | 2,220 | 1,932 | 2,370 | 8,495 | 3,591 | 4,558 | |
Provision for (benefit from) income taxes | 496 | 423 | 894 | 387 | (1,353) | 463 | 15 | 785 | 2,200 | (90) | 902 | |
Income (loss) from continuing operations | 943 | 1,051 | 1,833 | 2,468 | (1,578) | 1,757 | 1,917 | 1,585 | 6,295 | 3,681 | 3,656 | |
Discontinued operations: | ||||||||||||
Income (loss) from discontinued operations before income taxes | (10) | (4) | (2) | (8) | (8) | (8) | (1) | (2) | (23) | (19) | (72) | |
Provision for (benefit from) income taxes | (3) | (2) | 0 | (3) | 0 | (3) | (1) | (1) | (7) | (5) | (29) | |
Income (loss) from discontinued operations | (7) | (2) | (2) | (5) | (8) | (5) | 0 | (1) | (16) | (14) | (43) | |
Net income (loss) | 936 | 1,049 | 1,831 | 2,463 | (1,586) | 1,752 | 1,917 | 1,584 | 6,279 | 3,667 | 3,613 | |
Net income applicable to nonredeemable noncontrolling interests | 28 | 31 | 24 | 69 | 44 | 59 | 18 | 79 | 152 | 200 | 459 | |
Net income (loss) applicable to Morgan Stanley | 908 | 1,018 | 1,807 | 2,394 | (1,630) | 1,693 | 1,899 | 1,505 | 6,127 | 3,467 | 2,932 | |
Preferred stock dividends and other | 155 | 79 | 142 | 80 | 119 | 64 | 79 | 56 | 456 | 315 | 277 | |
Earnings applicable to Morgan Stanley common shareholders | $ 753 | $ 939 | $ 1,665 | $ 2,314 | $ (1,749) | $ 1,629 | $ 1,820 | $ 1,449 | $ 5,671 | $ 3,152 | $ 2,655 | |
Earnings (loss) per basic common share: | ||||||||||||
Income (loss) from continuing operations | $ 0.4 | $ 0.49 | $ 0.87 | $ 1.21 | $ (0.91) | $ 0.85 | $ 0.94 | $ 0.75 | $ 2.98 | $ 1.65 | $ 1.42 | |
Income (loss) from discontinued operations | 0 | 0 | 0 | (0.01) | 0 | 0 | 0 | 0 | (0.01) | (0.01) | (0.03) | |
Earnings (loss) per basic common share | 0.4 | 0.49 | 0.87 | 1.2 | (0.91) | 0.85 | 0.94 | 0.75 | 2.97 | 1.64 | 1.39 | |
Earnings (loss) per diluted common share: | ||||||||||||
Income (loss) from continuing operations | 0.39 | 0.48 | 0.85 | 1.18 | (0.91) | 0.83 | 0.92 | 0.74 | 2.91 | 1.61 | 1.38 | |
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (0.01) | (0.01) | (0.02) | |
Earnings (loss) per diluted common share | 0.39 | 0.48 | 0.85 | 1.18 | (0.91) | 0.83 | 0.92 | 0.74 | 2.9 | 1.6 | 1.36 | |
Dividends declared per common share | $ 0.15 | 0.15 | 0.15 | 0.15 | 0.1 | 0.1 | 0.1 | 0.1 | 0.05 | $ 0.55 | $ 0.35 | $ 0.2 |
Book value per common share | $ 35.24 | $ 34.97 | $ 34.52 | $ 33.8 | $ 33.25 | $ 34.16 | $ 33.46 | $ 32.38 |
Quarterly Results (Unaudited -
Quarterly Results (Unaudited - Narratives) (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 20, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Aggregate discrete net tax expense (benefit) from continuing operations | $ (564) | $ (2,226) | $ (407) | |||||||||
Gain on sale of retail property space | 141 | |||||||||||
Increase in legal reserve | $ 3,100 | |||||||||||
Compensation expense deferral adjustments | $ 1,100 | $ 772 | $ 2,165 | $ 2,262 | ||||||||
Dividends declared to common shareholders | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.05 | $ 0.55 | $ 0.35 | $ 0.2 |
Legal Fees | $ 563 | $ 3,364 | $ 1,941 | |||||||||
Severance Costs | $ 155 | |||||||||||
TransMontaigne Inc. | ||||||||||||
Gain on sale of retail property space | $ 141 | |||||||||||
Litigation and regulatory matters | ||||||||||||
Income Tax Reconciliation Nondeductible Expense Other | $ 900 | |||||||||||
Remeasurement of reserves and related interest due to new information regarding the status of a multi-year tax authority examination | ||||||||||||
Discrete income tax expense (benefit) | $ (609) | |||||||||||
Planned Repatriation of Non-U.S. Earnings at Cost Lower Than Originally Estimated | ||||||||||||
Discrete income tax expense (benefit) | $ (564) | $ (237) | ||||||||||
Release of a deferred tax liability related to internal restructuring | ||||||||||||
Discrete income tax expense (benefit) | (1,380) | |||||||||||
Aggregate discrete net tax expense (benefit) from continuing operations | (1,380) | |||||||||||
Wealth Management | ||||||||||||
Aggregate discrete net tax expense (benefit) from continuing operations | (1,390) | |||||||||||
Gain on sale of retail property space | 40 | |||||||||||
Severance Costs | 20 | |||||||||||
Institutional Securities | ||||||||||||
Aggregate discrete net tax expense (benefit) from continuing operations | $ (564) | (839) | $ (407) | |||||||||
Gain on sale of retail property space | 84 | |||||||||||
Gains (losses) in fair value adjustment | $ (468) | |||||||||||
Severance Costs | 125 | |||||||||||
Investment Management | ||||||||||||
Gain on sale of retail property space | $ 17 | |||||||||||
Severance Costs | $ 10 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 17, 2016 | Feb. 10, 2016 | Jan. 27, 2016 | Jan. 19, 2016 | Apr. 20, 2015 | Feb. 19, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event | |||||||||||||||||
Dividends declared per common share | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.05 | $ 0.55 | $ 0.35 | $ 0.2 | |||||
Morgan Stanley Capital Trust VII | |||||||||||||||||
Impact on EPS | |||||||||||||||||
Capital Securities Interest Rate Stated Percentage | 6.60% | 6.60% | |||||||||||||||
Subsequent Event | |||||||||||||||||
Subsequent Event | |||||||||||||||||
Dividends declared per common share | $ 0.15 | ||||||||||||||||
Dividends declared date | Jan. 19, 2016 | ||||||||||||||||
Dividend payable date | Feb. 15, 2016 | ||||||||||||||||
Shareholders of record, date | Jan. 29, 2016 | ||||||||||||||||
Increase in long-term borrowings | $ 5,200 | ||||||||||||||||
Subsequent Event | Civil Division Claim And Others | |||||||||||||||||
Impact on EPS | |||||||||||||||||
Litigation Settlement Amount | $ 2,600 | ||||||||||||||||
Subsequent Event | Senior Debt | |||||||||||||||||
Subsequent Event | |||||||||||||||||
Debt issuances | $ 400 | $ 5,500 |