Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 29, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
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 Common Stock, Shares Outstanding | 1,911,808,935 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Investment banking | $ 1,224 | $ 1,614 | $ 2,331 | $ 2,971 |
Trading | 2,746 | 2,973 | 4,811 | 6,623 |
Investments | 126 | 261 | 92 | 527 |
Commissions and fees | 1,020 | 1,158 | 2,075 | 2,344 |
Asset management, distribution and administration fees | 2,637 | 2,742 | 5,257 | 5,423 |
Other | 243 | 297 | 323 | 468 |
Total non-interest revenues | 7,996 | 9,045 | 14,889 | 18,356 |
Interest income | 1,667 | 1,386 | 3,414 | 2,870 |
Interest expense | 754 | 688 | 1,602 | 1,576 |
Net interest | 913 | 698 | 1,812 | 1,294 |
Net revenues | 8,909 | 9,743 | 16,701 | 19,650 |
Non-interest expenses: | ||||
Compensation and benefits | 4,015 | 4,405 | 7,698 | 8,929 |
Occupancy and equipment | 329 | 351 | 658 | 693 |
Brokerage, clearing and exchange fees | 484 | 487 | 949 | 950 |
Information processing and communications | 429 | 438 | 871 | 853 |
Marketing and business development | 154 | 179 | 288 | 329 |
Professional services | 547 | 598 | 1,061 | 1,084 |
Other | 468 | 558 | 955 | 1,230 |
Total non-interest expenses | 6,426 | 7,016 | 12,480 | 14,068 |
Income from continuing operations before income taxes | 2,483 | 2,727 | 4,221 | 5,582 |
Provision for income taxes | 833 | 894 | 1,411 | 1,281 |
Income from continuing operations | 1,650 | 1,833 | 2,810 | 4,301 |
Income (loss) from discontinued operations, net of income taxes | (4) | (2) | (7) | (7) |
Net income | 1,646 | 1,831 | 2,803 | 4,294 |
Net income applicable to noncontrolling interests | 64 | 24 | 87 | 93 |
Net income applicable to Morgan Stanley | 1,582 | 1,807 | 2,716 | 4,201 |
Preferred stock dividends and other | 157 | 142 | 235 | 222 |
Earnings applicable to Morgan Stanley common shareholders | $ 1,425 | $ 1,665 | $ 2,481 | $ 3,979 |
Earnings per basic common share: | ||||
Income from continuing operations | $ 0.77 | $ 0.87 | $ 1.33 | $ 2.07 |
Income (loss) from discontinued operations | (0.01) | 0 | (0.01) | 0 |
Earnings per basic common share | 0.76 | 0.87 | 1.32 | 2.07 |
Earnings per diluted common share: | ||||
Income from continuing operations | 0.75 | 0.85 | 1.3 | 2.03 |
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Earnings per diluted common share | 0.75 | 0.85 | 1.3 | 2.03 |
Dividends declared per common share | $ 0.15 | $ 0.15 | $ 0.3 | $ 0.25 |
Average common shares outstanding: | ||||
Basic | 1,866 | 1,919 | 1,875 | 1,922 |
Diluted | 1,899 | 1,960 | 1,907 | 1,962 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||
Condensed Consolidated Statements of Comprehensive Income | ||||||
Net income | $ 1,646 | $ 1,831 | $ 2,803 | $ 4,294 | ||
Other comprehensive income (loss), net of tax: | ||||||
Foreign currency translation adjustments | 131 | 34 | 317 | [1] | (188) | [1] |
Change in net unrealized gains (losses) on available for sale securities | 143 | (228) | 538 | [2] | (28) | [2] |
Pension, postretirement and other | (5) | (3) | (4) | (1) | ||
Change in net debt valuation adjustments | 145 | 0 | 348 | [3] | 0 | [3] |
Total other comprehensive income (loss) | 414 | (197) | 1,199 | (217) | ||
Comprehensive income | 2,060 | 1,634 | 4,002 | 4,077 | ||
Net income applicable to noncontrolling interests | 64 | 24 | 87 | 93 | ||
Other comprehensive income (loss) applicable to noncontrolling interests | 81 | (16) | 136 | (18) | ||
Comprehensive income applicable to Morgan Stanley | 1,915 | 1,626 | 3,779 | 4,002 | ||
Parenthetical Disclosures | ||||||
Foreign currency translation adjustments, provision for (benefit from) income taxes | (59) | (54) | (174) | 120 | ||
Change in net unrealized gains (losses) on securities available for sale, provision for (benefit from) income taxes | 84 | $ (137) | 314 | $ (16) | ||
Debt valuation adjustments, provision for (benefit from) income taxes | $ 80 | $ 200 | ||||
[1] | Amounts include Provision for (benefit from) income taxes of $ (59 ) million and $ (54) million in the quarter ended June 30, 2016 (“current quarter”) and the quarter ended June 30, 2015 (“prior year quarter”), respectively, and $ (174 ) million and $ 120 million in the six months ended June 30, 2016 (“current year period”) and the six months ended June 30, 2015 (“prior year period”), respectively. | |||||
[2] | Amounts include Provision for (benefit from) income taxes of $ 84 mill ion and $ (137) million in the current quarter and prior year quarter, respectively, and $ 314 million and $ (16) million in the current year period and prior year period, respectively . | |||||
[3] | Debt valuation adjustments (“DVA”) represent the change in the fair v alue resulting from fluctuations in the Firm’s credit spreads and other credit factors related to liabilities carried at fair value, primarily certain Long-term and Short-term borrowings. Amounts include Provision for (benefit from) income taxes of $ 80 mil lion and $ 200 million in the current quarter and current year period, respectively . See Notes 2 and 14 for further information. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 27,597 | $ 19,827 |
Interest bearing deposits with banks | 28,536 | 34,256 |
Trading assets, at fair value ($141,543 and $127,627 were pledged to various parties) | 256,794 | 239,505 |
Investment securities (includes $67,726 and $66,759 at fair value) | 80,144 | 71,983 |
Securities purchased under agreements to resell (includes $555 and $806 at fair value) | 97,589 | 87,657 |
Securities borrowed | 131,281 | 142,416 |
Customer and other receivables | 52,827 | 45,407 |
Loans | ||
Held for investment (net of allowances of $323 and $225) | 77,283 | 72,559 |
Held for sale | 15,882 | 13,200 |
Goodwill | 6,581 | 6,584 |
Intangible assets (net of accumulated amortization of $2,279 and $2,130) (includes $3 and $5 at fair value) | 2,833 | 2,984 |
Other assets | 51,526 | 51,087 |
Total assets | 828,873 | 787,465 |
Liabilities | ||
Deposits (includes $95 and $125 at fair value) | 152,693 | 156,034 |
Short-term borrowings (includes $511 and $1,648 at fair value) | 880 | 2,173 |
Trading liabilities, at fair value | 140,662 | 128,455 |
Securities sold under agreements to repurchase (includes $699 and $683 at fair value) | 50,328 | 36,692 |
Securities loaned | 17,241 | 19,358 |
Other secured financings (includes $2,921 and $2,854 at fair value) | 9,901 | 9,464 |
Customer and other payables | 201,189 | 186,626 |
Other liabilities and accrued expenses | 14,112 | 18,711 |
Long-term borrowings (includes $37,804 and $33,045 at fair value) | 163,492 | 153,768 |
Total liabilities | 750,498 | 711,281 |
Commitments and contingent liabilities | ||
Morgan Stanley shareholders' equity: | ||
Preferred stock | 7,520 | 7,520 |
Common stock, $0.01 par value:Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,917,509,492 and 1,920,024,027 | 20 | 20 |
Additional Paid-in capital | 22,697 | 24,153 |
Retained earnings | 51,410 | 49,204 |
Employee stock trusts | 2,873 | 2,409 |
Accumulated other comprehensive loss | (905) | (1,656) |
Common stock held in treasury, at cost, $0.01 par value (121,384,487 and 118,869,952 shares) | (3,626) | (4,059) |
Common stock issued to employee trusts | (2,873) | (2,409) |
Total Morgan Stanley shareholders' equity | 77,116 | 75,182 |
Noncontrolling interests | 1,259 | 1,002 |
Total equity | 78,375 | 76,184 |
Total liabilities and equity | $ 828,873 | $ 787,465 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Condensed Consolidated Statements of Financial Condition | ||
Trading assets pledged to various parties | $ 141,543 | $ 127,627 |
Total AFS securities, fair value | 67,726 | 66,759 |
Securities purchased under agreement to resell, fair value | 555 | 806 |
Allowance for loan losses | 323 | 225 |
Intangible assets, accumulated amortization | 2,279 | 2,130 |
Intangible assets, fair value | 3 | 5 |
Deposits, fair value | 95 | 125 |
Short-term borrowings, fair value | 511 | 1,648 |
Securities sold under agreement to repurchase, fair value | 699 | 683 |
Other secured financings, fair value | 2,921 | 2,854 |
Long-term borrowings, fair value | $ 37,804 | $ 33,045 |
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 | 1,917,509,492 | 1,920,024,027 |
Common stock held in treasury, shares | 121,384,487 | 118,869,952 |
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-controlling Interests | |
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 | 4,201 | 4,201 | |||||||||
Net income applicable to noncontrolling interests | 93 | 93 | |||||||||
Dividends | (720) | (720) | |||||||||
Shares issued under employee plans and related tax effects | 846 | (577) | 314 | 1,423 | (314) | ||||||
Repurchases of common stock and employee tax withholdings | (1,473) | 1,473 | |||||||||
Net change in Accumulated other comprehensive income (loss) | (217) | (199) | (18) | ||||||||
Issuance of preferred stock | 1,493 | 1,500 | (7) | ||||||||
Deconsolidation of certain legal entities associated with a real estate fund | (191) | (191) | |||||||||
Other net decreases | (69) | (10) | (59) | ||||||||
BALANCE AT at Jun. 30, 2015 | 76,067 | 7,520 | 20 | 23,655 | 48,106 | 2,441 | (1,447) | (2,816) | (2,441) | 1,029 | |
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 | |
Cumulative adjustment for accounting change related to DVA | Accounting standard early adoption | [1] | 0 | 312 | (312) | |||||||
Net adjustment for accounting change related to consolidation | [2] | 106 | 106 | ||||||||
Net income applicable to Morgan Stanley | 2,716 | 2,716 | |||||||||
Net income applicable to noncontrolling interests | 87 | 87 | |||||||||
Dividends | (822) | (822) | |||||||||
Shares issued under employee plans and related tax effects | 606 | (1,456) | 464 | 2,062 | (464) | ||||||
Repurchases of common stock and employee tax withholdings | (1,629) | (1,629) | |||||||||
Net change in Accumulated other comprehensive income (loss) | 1,199 | 1,063 | 136 | ||||||||
Other net decreases | (72) | (72) | |||||||||
BALANCE AT at Jun. 30, 2016 | $ 78,375 | $ 7,520 | $ 20 | $ 22,697 | $ 51,410 | $ 2,873 | $ (905) | $ (3,626) | $ (2,873) | $ 1,259 | |
[1] | In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , a cumulative catch up adjustment was recorded as of January 1, 2016 to move the cumulative DVA amount, net of noncontrolling interest and tax, related to outstanding liabilities under the fair value option election from Retained earnings into Accumulated other comprehensive income (loss) (“AOCI”). See Notes 2 and 14 for further information. | ||||||||||
[2] | In accordance with the accounting update Amendments to the Consolidation Analysis , a net adjustment was recorded as of January 1, 2016 to consolidate or dec onsolidate certain entities under the new guidance . See Note 2 for further information. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 2,803 | $ 4,294 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
Income from equity method investments | (1) | (83) |
Compensation payable in common stock and options | 492 | 611 |
Depreciation and amortization | 879 | 654 |
Net gain on sale of available for sale securities | (82) | (55) |
Impairment charges | 67 | 83 |
Provision for credit losses on lending activities | 131 | 38 |
Other operating adjustments | 218 | 37 |
Changes in assets and liabilities: | ||
Trading assets, net of Trading liabilities | (333) | 25,115 |
Securities borrowed | 11,135 | (7,261) |
Securities loaned | (2,117) | (2,068) |
Customer and other receivables and other assets | (10,537) | (601) |
Customer and other payables and other liabilities | 9,907 | (1,482) |
Securities purchased under agreements to resell | (9,932) | (23,472) |
Securities sold under agreements to repurchase | 13,636 | (4,263) |
Net cash provided by (used for) operating activities | 16,266 | (8,453) |
Proceeds from (payments for): | ||
Other assets - Premises, equipment and software net | (645) | (620) |
Loans: | ||
Changes in loans, net | (4,724) | (9,082) |
Investment securities: | ||
Purchases | (30,700) | (26,832) |
Proceeds from sales | 20,274 | 26,501 |
Proceeds from paydowns and maturities | 3,507 | 2,796 |
Other investing activities | (126) | (97) |
Net cash used for investing activities | (12,414) | (7,334) |
Net proceeds from (payments for): | ||
Short-term borrowings | (1,293) | 861 |
Noncontrolling interests | (43) | (60) |
Other secured financings | (69) | (280) |
Deposits | (3,341) | 5,659 |
Proceeds from: | ||
Excess tax benefits associated with stock-based awards | 42 | 176 |
Derivatives financing activities | 0 | 312 |
Issuance of preferred stock, net of issuance costs | 0 | 1,493 |
Issuance of long-term borrowings | 20,628 | 22,909 |
Payments for: | ||
Long-term borrowings | (15,900) | (12,963) |
Derivatives financing activities | (120) | (257) |
Repurchases of common stock and employee tax withholdings | (1,629) | (1,473) |
Cash dividends | (791) | (673) |
Net cash provided by (used for) financing activities | (2,516) | 15,704 |
Effect of exchange rate changes on cash and cash equivalents | 714 | (542) |
Net increase (decrease) in cash and cash equivalents | 2,050 | (625) |
Cash and cash equivalents, at beginning of period | 54,083 | 46,984 |
Cash and cash equivalents, at end of period | 56,133 | 46,359 |
Cash and cash equivalents include: | ||
Cash and due from banks | 27,597 | 19,145 |
Interest bearing deposits with banks | 28,536 | 27,214 |
Cash and cash equivalents, at end of period | 56,133 | 46,359 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash payments for interest | 1,082 | 1,027 |
Cash payments for income taxes, net of refunds | $ 340 | $ 342 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Introduction and Basis of Presentation | |
Introduction And Basis Of Presentation | 1. Introduction and Basis of Presentation The Firm 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 “Firm” mean Morgan Stanley (the “Parent”) together with its consolidated subsidiaries. For a description of the clients and principal products and services of each of the Firm’s business segments, see Note 1 to the consolidated financial statements in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Form 10-K”). Basis of Financial Information The consolidated financial statements are prepared in accordance with accountin g principles generally accepted in the United States of America (“U.S. GAAP”) , which require the Firm 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 Firm believes that the estimates utilized in the preparation of its co nsolidated financial statements are prudent and reasonable. Actual results could differ materially from these estimates. Intercompany balances and transactions have been eliminated. The accompanying consolidated financial statements should be read in con junction with the Firm’s consolidated financial statements and notes thereto included in the 2015 Form 10-K. Certain footnote disclosures included in the 2015 Form 10-K have been condensed or omitted from the consolidated financial statements as they are n ot required for interim reporting under U.S. GAAP. The consolidated financial statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the interim period . The results of operations for interim periods are not necessarily indicative of results for the entire year. Consolidation The consolidated financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain variable interest entities (“VIE”) (see Note 12). For consolidated subsidiaries that are less than wholly owned, the third-party holdings of equity interests are referred to as nonco ntrolling interests. The net income attributable to noncontrolling interests for such subsidiaries is presented as Net income (loss) applicable to noncontrolling interests in the consolidated statements of income. The portion of shareholders’ equity of suc h subsidiaries that is attributable to noncontrolling interests for such subsidiaries is presented as noncontrolling interests, a component of total equity, in the consolidated balance sheets. For a discussion of the Firm’s VIEs and its significant regul ated U.S. and international subsidiaries, see Notes 1 and 2 to the consolidated financial statements in the 2015 Form 10-K. See also Note 2 herein. Consolidated Statement s of Cash Flows Presentation The adoption of the accounting update, Amendme nts to the Consolidation Analysis (see Note 2) on January 1, 2016, resulted in a net noncash increase in total assets of $ 126 million. In the prior year quarter, the Firm deconsolidated approximately $ 191 million in net assets previously attributable to no nredeemable noncontrolling interests that were related to a real estate fund sponsored by the Firm. The deconsolidation resulted in a non-cash reduction of assets of $ 169 million. Global Oil Merchanting Business As a result of entering into a definit ive agreement to sell the global oil merchanting unit of the commodities division to Castleton Commodities International LLC, on May 11, 2015, the Firm recognized an impairment charge of $ 59 million in Other revenues during the prior quarter and prior year period, t o reduce the carrying amount of the unit to its estimated fair value less costs to sell. The Firm closed the transaction on November 1, 2015. The transaction did not meet the criteria for discontinued operations and did not have a material impact on the Firm’s financial results. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies For a detailed discussion about the Firm’s significant accounting policies, see Note 2 to the consolidated financial statements in the 2015 Form 10-K. During the current year period , other than the following, there were no significant updates made to the Firm’s significant accounting policies. Accounting Standards Adopted The Firm adopted the following accounting updates as of January 1, 2016 . Recognition and Measurement of Finan cial Assets and Financial Liabilities. In January 2016, the Financial Accounting Standards Board (the “FASB”) issued an accounting update that changes the requirements for the recognition and measurement of certain financial assets and financial liabilities. The Firm early adopted the provision in this guidance relating to liabilities measured at fair value pursuant to a fair value option election that requires pres enting unrealized DVA in Other c omprehensive income (loss) (“OCI”), a change from the previous requirement to present DVA in net income. Realized DVA amounts will be recycled from A OCI to Trading revenues. DVA amounts from periods prior to adoption remain in Trading revenues as previously reported. A cumula tive catch up adjustment, net of noncontrolling interests and tax, of $ 312 million was recorded as of January 1, 2016 to move the cumulative DVA loss amount from Retained earnings into AOCI. Other provisions of this rule may not be early adopted and will be effective January 1, 2018 , and are not expected to have a material impact on the consolidated financial statements . Amendments to the Consolidation Analysis. In February 2015, the FASB issued an accounting update that provides a new consolidation model for certain entities, such as investment funds and limited partnerships. The adoption on January 1, 2016, increased total assets by $ 131 million, reflecting consolidations of $ 206 million net of deconsolidations of $ 75 million. The consolidations res ulted primarily from certain funds in Investment Management where the Firm acts as a general partner. Simplifying the Presentation of Debt Issuance Costs. In April 2015, the FASB issued an accounting update that requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts, instead of as an asset as was p reviously required . This guidance became effective for the Firm beginning January 1, 2016 and did not have a material impact in the consolidated financial statements. The Firm adopted the following accounting updates as of January 1, 2016 , which did not h ave an impact in the consolidated financial statements . Simplifying the Accounting for Measurement-Period Adjustments. Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity. Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures | |
Fair Value Disclosures | 3. Fair Value s Fair Value Measurements For a description of the valuation techniques applied to the Firm’s major categories of assets and liabilities measured at fair value on a recurring basis, see Note 3 to the consolidated financial statements in the 2015 Form 10-K. During the current quarter and current year period , there were no significant updates made to the Firm’s valuation techniques. Assets and Liabilities Measured at Fair Value on a Recurring Basis Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting Balance at June 30, 2016 (dollars in millions) Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 24,565 $ — $ — $ — $ 24,565 U.S. agency securities 795 22,085 20 — 22,900 Total U.S. government and agency securities 25,360 22,085 20 — 47,465 Other sovereign government obligations 20,942 6,607 2 — 27,551 Corporate and other debt: State and municipal securities — 1,943 10 — 1,953 Residential mortgage-backed securities — 586 216 — 802 Commercial mortgage-backed securities — 961 51 — 1,012 Asset-backed securities — 142 88 — 230 Corporate bonds — 11,751 276 — 12,027 Collateralized debt and loan obligations — 443 109 — 552 Loans and lending commitments(1) — 3,879 5,418 — 9,297 Other debt — 827 528 — 1,355 Total corporate and other debt — 20,532 6,696 — 27,228 Corporate equities(2) 100,018 367 572 — 100,957 Securities received as collateral 10,121 7 — — 10,128 Derivative and other contracts: Interest rate contracts 791 462,243 540 — 463,574 Credit contracts — 16,157 304 — 16,461 Foreign exchange contracts 140 76,264 101 — 76,505 Equity contracts 1,368 40,524 637 — 42,529 Commodity contracts 2,847 8,605 4,057 — 15,509 Other — 16 — — 16 Netting(3) (4,184) (505,871) (2,537) (63,844) (576,436) Total derivative and other contracts 962 97,938 3,102 (63,844) 38,158 Investments(4): Principal investments 21 19 769 — 809 Other 295 559 205 — 1,059 Total investments 316 578 974 — 1,868 Physical commodities — 193 — — 193 Total trading assets(4) 157,719 148,307 11,366 (63,844) 253,548 AFS securities 31,062 36,664 — — 67,726 Securities purchased under agreements to resell — 555 — — 555 Intangible assets — 3 — — 3 Total assets measured at fair value $ 188,781 $ 185,529 $ 11,366 $ (63,844) $ 321,832 Liabilities at Fair Value Deposits $ — $ 65 $ 30 $ — $ 95 Short-term borrowings — 511 — — 511 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 12,983 — — — 12,983 U.S. agency securities 358 111 — — 469 Total U.S. government and agency securities 13,341 111 — — 13,452 Other sovereign government obligations 15,885 2,668 — — 18,553 Corporate and other debt: State and municipal securities — 3 — — 3 Asset-backed securities — 449 — — 449 Corporate bonds — 5,578 6 — 5,584 Other debt — 15 3 — 18 Total corporate and other debt — 6,045 9 — 6,054 Corporate equities(2) 46,440 76 26 — 46,542 Obligation to return securities received as collateral 18,731 7 — — 18,738 Derivative and other contracts: Interest rate contracts 969 436,022 775 — 437,766 Credit contracts — 16,403 1,418 — 17,821 Foreign exchange contracts 82 78,441 102 — 78,625 Equity contracts 1,262 43,177 2,110 — 46,549 Commodity contracts 2,368 7,652 2,759 — 12,779 Other — 91 11 — 102 Netting(3) (4,184) (505,871) (2,537) (43,727) (556,319) Total derivative and other contracts 497 75,915 4,638 (43,727) 37,323 Total trading liabilities 94,894 84,822 4,673 (43,727) 140,662 Securities sold under agreements to repurchase — 549 150 — 699 Other secured financings — 2,480 441 — 2,921 Long-term borrowings 44 35,831 1,929 — 37,804 Total liabilities measured at fair value $ 94,938 $ 124,258 $ 7,223 $ (43,727) $ 182,692 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 Securities received as collateral 11,221 3 1 — 11,225 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) 150,128 128,086 13,010 (55,562) 235,662 AFS securities 34,351 32,408 — — 66,759 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 Obligation to return securities received as collateral 19,312 3 1 — 19,316 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 91,421 71,734 5,773 (40,473) 128,455 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 _____________ AFS—Available for sale (1) A t June 30, 2016 , Loans and lending commitments h eld at fair value consisted of $ 7,114 million of corporate loans, $ 1,721 million of res idential real estate loans and $ 462 million of wholesale real estate loans. 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 whol esale real estate loans. (2) For trading purposes, the Firm holds or sells 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 included in the column titled “Counterparty and Cash Collateral Netting.” For contracts with the same counterparty, counterparty netting among positions classified within the same level is included within that 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 net asset value (“NAV”) per share, which a re not classified in the fair value hierarchy. At June 30, 2016 and December 31, 2015, the fair value of these investments was $ 3,246 million and $ 3,843 million, respectively. For additional disclosure about such investments, see “Fair Value of Investments Measured at Net Asset Value” herein. Changes in 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 all periods presented . 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 following tables do not reflect the related real ized and unrealized gains (losses) on hedging instruments that have been classified by the Firm 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 Firm 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 following tables herein may include changes in fair value during the p eriod that were attributable to both observable and unobservable inputs . Roll-forward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Beginning Balance at March 31, 2016 Total Realized and Unrealized Gains (Losses) Purchases (1) Sales Issuances Settlements Net Transfers Ending Balance at June 30, 2016 Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at June 30, 2016 (dollars in millions) Assets at Fair Value Trading assets: U.S. agency securities $ 8 $ — $ — $ (18) $ — $ — $ 30 $ 20 $ — Other sovereign government obligations 8 — — (3) — — (3) 2 — Corporate and other debt: State and municipal securities 5 1 4 — — — — 10 2 Residential mortgage-backed securities 292 3 — (82) — — 3 216 (5) Commercial mortgage-backed securities 59 (3) 1 (4) — — (2) 51 (5) Asset-backed securities 4 (4) 6 (1) — — 83 88 (4) Corporate bonds 224 17 116 (35) — — (46) 276 17 Collateralized debt and loan obligations 348 18 3 (178) — — (82) 109 18 Loans and lending commitments 6,185 (46) 360 (484) — (596) (1) 5,418 (55) Other debt 527 4 13 (19) — — 3 528 2 Total corporate and other debt 7,644 (10) 503 (803) — (596) (42) 6,696 (30) Corporate equities 430 (63) 273 (82) — — 14 572 (63) Net derivative and other contracts(2): Interest rate contracts 169 (159) 2 — (7) 42 (282) (235) (157) Credit contracts (723) 65 1 — — 93 (550) (1,114) 53 Foreign exchange contracts 126 (58) — — — (94) 25 (1) (47) Equity contracts (1,832) 168 50 — (140) 263 18 (1,473) (106) Commodity contracts 1,200 211 5 — (4) (88) (26) 1,298 130 Other — — — — — — (11) (11) — Total net derivative and other contracts (1,060) 227 58 — (151) 216 (826) (1,536) (127) Investments: Principal investments 743 4 33 (11) — — — 769 6 Other 179 1 25 — — — — 205 1 Total investments 922 5 58 (11) — — — 974 7 Intangible assets 4 — — — — — (4) — — Liabilities at Fair Value Deposits $ 23 $ (1) $ — $ — $ 8 $ — $ (2) $ 30 $ (1) Trading liabilities: Corporate and other debt: Corporate bonds 6 (1) (5) 29 — — (25) 6 (1) Lending commitments 1 1 — — — — — — — Other debt 4 — (1) — — — — 3 — Total corporate and other debt 11 — (6) 29 — — (25) 9 (1) Corporate equities 31 (28) (33) 5 — — (5) 26 — Obligation to return securities received as collateral 1 — (1) — — — — — — Securities sold under agreements to repurchase 151 1 — — — — — 150 1 Other secured financings 454 (14) — — 23 (22) (28) 441 (14) Long-term borrowings 1,798 21 — — 164 (131) 119 1,929 26 Beginning Balance at December 31, 2015 Total Realized and Unrealized Gains (Losses) Purchases (1) Sales Issuances Settlements Net Transfers Ending Balance at June 30, 2016 Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at June 30, 2016 (dollars in millions) Assets at Fair Value Trading assets: U.S. agency securities $ — $ 1 $ — $ (19) $ — $ — $ 38 $ 20 $ 1 Other sovereign government obligations 4 — — (5) — — 3 2 1 Corporate and other debt: State and municipal securities 19 1 4 (15) — — 1 10 1 Residential mortgage-backed securities 341 (19) 19 (133) — — 8 216 (14) Commercial mortgage-backed securities 72 (10) — (19) — — 8 51 (11) Asset-backed securities 25 (7) 7 (18) — — 81 88 (8) Corporate bonds 267 62 113 (128) — — (38) 276 61 Collateralized debt and loan obligations 430 5 22 (224) — — (124) 109 17 Loans and lending commitments 5,936 (111) 970 (720) — (672) 15 5,418 (121) Other debt 448 (2) 133 (63) — — 12 528 (2) Total corporate and other debt 7,538 (81) 1,268 (1,320) — (672) (37) 6,696 (77) Corporate equities 433 (45) 296 (119) — — 7 572 (64) Securities received as collateral 1 — — (1) — — — — — Net derivative and other contracts(2): Interest rate contracts 260 305 3 — (21) (60) (722) (235) 205 Credit contracts (844) (343) 1 — — 153 (81) (1,114) (360) Foreign exchange contracts 141 (109) — — — (201) 168 (1) (82) Equity contracts (2,031) (321) 71 — (184) 1,121 (129) (1,473) (434) Commodity contracts 1,050 297 7 — (4) (176) 124 1,298 210 Other — — — — — — (11) (11) — Total net derivative and other contracts (1,424) (171) 82 — (209) 837 (651) (1,536) (461) Investments: Principal investments 486 (39) 403 (40) — (41) — 769 (37) Other 221 (17) 1 — — — — 205 (16) Total investments 707 (56) 404 (40) — (41) — 974 (53) Intangible assets 5 — — — — — (5) — — Liabilities at Fair Value Deposits $ 19 $ (2) $ — $ — $ 13 $ — $ (4) $ 30 $ (2) Short-term borrowings 1 — — — — (1) — — — Trading liabilities: Corporate and other debt: Corporate bonds — (5) (7) 10 — — (2) 6 (5) Other debt 4 2 (3) 4 — — — 3 2 Total corporate and other debt 4 (3) (10) 14 — — (2) 9 (3) Corporate equities 17 (3) (22) 18 — — 10 26 (3) Obligation to return securities received as collateral 1 — (1) — — — — — — Securities sold under agreements to repurchase 151 1 — — — — — 150 1 Other secured financings 461 (32) — — 69 (43) (78) 441 (32) Long-term borrowings 1,987 (12) — — 276 (167) (179) 1,929 (6) Beginning Balance at March 31, 2015 Total Realized and Unrealized Gains (Losses) Purchases (1) Sales Issuances Settlements Net Transfers Ending Balance at June 30, 2015 Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at June 30, 2015 (dollars in millions) Assets at Fair Value Trading assets: U.S. agency securities $ — $ — $ — $ (3) $ — $ — $ 6 $ 3 $ — Other sovereign government obligations 11 — 5 (1) — — (3) 12 — Corporate and other debt: State and municipal securities — 1 4 (9) — — 11 7 1 Residential mortgage-backed securities 296 2 138 (32) — — (26) 378 2 Commercial mortgage-backed securities 180 (4) 5 (9) — — (88) 84 (5) Asset-backed securities 67 5 11 (64) — — — 19 1 Corporate bonds 424 (4) 228 (150) — (2) (17) 479 (16) Collateralized debt and loan obligations 822 68 300 (439) — (78) (13) 660 (10) Loans and lending commitments 4,789 31 1,615 (351) — (491) (81) 5,512 26 Other debt 486 (1) 130 (51) — — — 564 (1) Total corporate and other debt 7,064 98 2,431 (1,105) — (571) (214) 7,703 (2) Corporate equities 230 38 266 (92) — — 44 486 26 Securities received as collateral 33 — — (30) — — — 3 — Net derivative and other contracts(2): Interest rate contracts (496) 95 4 — (13) 14 160 (236) 135 Credit contracts (984) (24) 4 — (24) 23 16 (989) (29) Foreign exchange contracts 297 57 — — (1) 43 50 446 82 Equity contracts (2,472) (23) 39 — (54) 206 202 (2,102) (161) Commodity contracts 1,345 4 2 — (112) (34) — 1,205 (27) Total net derivative and other contracts (2,310) 109 49 — (204) 252 428 (1,676) — Investments: Principal investments 829 (21) 5 (12) — (205) (15) 581 (21) Other 391 (4) — — — — (87) 300 — Total investments 1,220 (25) 5 (12) — (205) (102) 881 (21) Intangible assets 5 1 — — — — — 6 1 Liabilities at Fair Value Trading liabilities: Corporate and other debt: Corporate bonds $ 23 $ — $ (21) $ 15 $ — $ — $ (2) $ 15 $ — Other debt 23 — — 10 — (29) — 4 — Total corporate and other debt 46 — (21) 25 — (29) (2) 19 — Corporate equities 50 240 (49) 2 — — 349 112 240 Obligation to return securities received as collateral 33 — (30) — — — — 3 — Securities sold under agreements to repurchase 154 — — — — — — 154 — Other secured financings 133 2 — — 37 — — 168 2 Long-term borrowings 1,738 51 — — 549 (88) 73 2,221 51 Beginning Balance at December 31, 2014 Total Realized and Unrealized Gains (Losses) Purchases (1) Sales Issuances Settlements Net Transfers Ending Balance at June 30, 2015 Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at June 30, 2015 (dollars in millions) Assets at Fair Value Trading assets: U.S. agency securities $ — $ — $ 3 $ — $ — $ — $ — $ 3 $ — Other sovereign government obligations 41 1 6 (32) — — (4) 12 1 Corporate and other debt: State and municipal securities — 1 4 — — — 2 7 1 Residential mortgage-backed securities 175 21 163 (51) — — 70 378 12 Commercial mortgage-backed securities 96 (6) 16 (22) — — — 84 (9) Asset-backed securities 76 (4) 11 (29) — — (35) 19 2 Corporate bonds 386 10 213 (126) — (1) (3) 479 9 Collateralized debt and loan obligations 1,152 145 404 (682) — (331) (28) 660 (6) Loans and lending commitments 5,874 35 2,082 (209) — (2,078) (192) 5,512 30 Other debt 285 (8) 12 — — (1) 276 564 6 Total corporate and other debt 8,044 194 2,905 (1,119) — (2,411) 90 7,703 45 Corporate equities 272 64 260 (147) — — 37 486 49 Securities received as collateral — — 3 — — — — 3 — Net derivative and other contracts(2): Interest rate contracts (173) 188 9 — (20) 124 (364) (236) 197 Credit contracts (743) (276) 17 — (54) 31 36 (989) (284) Foreign exchange contracts 151 121 — — (1) 144 31 446 120 Equity contracts (2,165) (73) 69 — (225) 156 136 (2,102) (160) Commodity contracts 1,146 299 3 — (112) (72) (59) 1,205 234 Total net derivative and other contracts (1,784) 259 98 — (412) 383 (220) (1,676) 107 Investments: Principal investments 835 (4) 15 (46) — (205) (14) 581 (26) Other 323 (16) 2 (6) — — (3) 300 (12) Total investments 1,158 (20) 17 (52) — (205) (17) 881 (38) Intangible assets 6 1 — — — (1) — 6 1 Liabilities at Fair Value Trading liabilities: Corporate and other debt: Corporate bonds $ 78 $ (2) $ (12) $ 14 $ — $ — $ (67) $ 15 $ (2) Lending commitments 5 5 — — — — — — 5 Other debt 38 — — 6 — (39) (1) 4 — Total corporate and other debt 121 3 (12) 20 — (39) (68) 19 3 Corporate equities 45 19 (75) 25 — — 136 112 20 Obligation to return securities received as collateral — — — 3 — — — 3 — Securities sold under agreements to repurchase 153 (1) — — — — — 154 (1) Other secured financings 149 (6) — — 37 (24) — 168 2 Long-term borrowings 1,934 65 — — 612 (300) 40 2,221 59 ___________ (1) Loan originations and consolidations of VIEs are included in purchases. (2) Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts. For further information on derivative instruments and hedging activities, see Note 4 . Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements The following disclosures provide information on the valuation techniques, significant unobservable inputs , and their ranges and averages for each major category of assets and liabilities measured at fair value on a recurring basis with a significant Level 3 balance. The level of aggregation and breadth of products cause the range of inputs to be wide and not evenly distributed across the inventory. Further, the range of uno bservable inputs may differ across firms in the financial services industry because of diversity in the types of products included in each firm’s inventory. The following disclosures also include qualitative information on the sensitivity of the fair value measurements to changes in the significant unobservable inputs . Recurring Level 3 Fair Value Measurements Valuation Techniques and Sensitivity of Unobservable Inputs Balance at June 30, 2016 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 $ 216 Comparable pricing: Comparable bond price / (A) 0 to 79 points 20 points Commercial mortgage-backed securities 51 Comparable pricing: Comparable bond price / (A) 0 to 7 points 1 point Asset-backed securities 88 Comparable pricing: Comparable bond price / (A) 45 to 55 points 46 points Corporate bonds 276 Comparable pricing(3): Comparable bond price / (A) 3 to 135 points 91 points Comparable pricing: EBITDA multiple / (A) 5 to 10 times 7 times Collateralized debt and loan obligations 109 Comparable pricing(3): Comparable bond price / (A) 20 to 95 points 57 points Correlation model: Credit correlation / (B) 29% to 61% 42% Loans and lending commitments 5,418 Corporate loan model: Credit spread / (C) 482 to 898 bps 596 bps Margin loan model(3): Credit spread / (C)(D) 31 to 102 bps 86 bps Volatility skew / (C)(D) 20% to 46% 32% Discount rate / (C)(D) 1% to 8% 3% Expected recovery: Asset coverage / (A) 47% to 99% 90% Option model: Volatility skew / (C) -1% -1% Comparable pricing: Comparable loan price / (A) 43 to 100 points 87 points Discounted cash flow: Implied weighted average cost of capital / (C)(D) 5% to 6% 6% Capitalization rate / (C)(D) 4% to 10% 4% Other debt 528 Comparable pricing: Comparable loan price / (A) 3 to 84 points 66 points Comparable pricing: Comparable bond price / (A) 7 points 7 points Option model: At the money volatility / (C) 16% to 53% 53% Margin loan model(3): Discount rate / (C) 1% to 2% 2% Discounted cash flow: Discount rate / (C) 10% to 13% 12% Corporate equities 572 Comparable pricing: Comparable equity price / (A) 100% 100% Net derivative and other contracts(4): Interest rate contracts (235) Option model(3): Interest rate - Foreign exchange correlation / (A)(D) 25% to 55% 42% / 42% (5) Interest rate volatility skew / (A)(D) 34% to 143% 78% / 77% (5) Interest rate quanto correlation / (A)(D) -8% to 35% 2% / -7% (5) Interest rate curve correlation / (C)(D) 19% to 95% 71% / 76% (5) Interest rate curve / (C)(D) 0% to 1% 1% / 1% (5) Inflation volatility / (A)(D) 0% to 1% 1% / 1% (5) Interest rate - Inflation correlation / (A)(D) -24% to -44% -34% / -33% (5) Foreign exchange volatility skew / (C)(D) 0% to 11% 4% / 6% (5) Comparable pricing: Comparable bond price / (C) 95 to 100 points 96 points Credit contracts (1,114) Comparable pricing: Cash synthetic basis / (C)(D) 5 to 12 points 10 points Comparable bond price / (C)(D) 0 to 85 points 26 points Correlation model(3): Credit correlation / (B) 29% to 92% 49% Foreign exchange contracts(6) (1) Option model: Interest rate - Foreign exchange correlation / (A)(D) 25% to 55% 42% / 42% (5) Interest rate volatility skew / (A)(D) 34% to 143% 78% / 77% (5) Interest rate curve / (A)(D) 0% 0% / 0% (5) Interest rate curve correlation / (C)(D) 19% to 94% 73% / 81% (5) Equity contracts(6) (1,473) Option model: At the money volatility / (A)(D) 6% to 81% 35% Volatility skew / (A)(D) -4% to 0% -1% Equity - Equity correlation / (A)(D) 40% to 98% 79% Equity - Foreign exchange correlation / (C)(D) -70% to -31% -42% Equity - Interest rate correlation / (C)(D) -7% to 50% 19% / 12% (5) Commodity contracts 1,298 Option model: Forward power price / (C)(D) $2 to $95 per $34 per megawatt hour megawatt hour Commodity volatility / (C)(D) 6% to 90% 18% Cross commodity correlation / (C)(D) 5% to 99% 93% Investments: Principal investments 769 Discounted cash flow: Implied weighted average cost of capital / (C)(D) 13% to 16% 15% Exit multiple / (A)(D) 8 to 23 times 9 times Market approach(3): EBITDA multiple / (A)(D) 6 to 25 times 12 times Forward capacity price / (A)(D) $4 to $9 $7 Comparable pricing: Comparable equity price / (A) 43% to 100% 82% Other 205 Discounted cash flow: Implied weighted average cost of capital / (C)(D) 9% 9% Exit multiple / (A)(D) 13 times 13 times Market approach: EBITDA multiple / (A)(D) 6 to 13 times 12 times Comparable pricing(3): Comparable equity price / (A) 100% 100% Liabilities at Fair Value Securities sold under agreements to repurchase 150 Discounted cash flow: Funding spread / (A) 117 to 123 bps 120 bps Other secured financings 441 Option model: Volatility skew / (C) -1% -1% Discounted cash flow(3): Discount rate / (C) 4% 4% Discounted cash flow: Funding spread / (A) 101 to 126 bps 114 bps Long-term borrowings 1,929 Option model(3): At the money volatility / (C)(D) 6% to 48% 29% Volatility skew / (C)(D) -2% to 0% -1% Equity - Equity correlation / (C)(D) 50% to 98% 75% Equity - Foreign exchange correlation / (C)(D) -50% to 11% -25% Option model: Interest rate - credit spread correlation / (A)(D) -52% to 3% -24% / -23% (5) Interest rate - Foreign exchange correlation / (A)(D) 53% 53% / 53% (5) Interest rate - equity correlation / (A)(D) 7% to 44% 26% / 26% (5) Interest rate curve correlation / (C)(D) 40% to 87% 73% / 78% (5) Correlation model: Credit correlation / (B) 33% to 61% 44% 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, 2015 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% ________________ 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, 79 points would be 79 % of par. A basis point equals 1/100th of 1%; for example, 898 bps would equal 8.98 %. (2) Amounts represent weighted averages except where simple aver ages 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, principal investm ents, 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 adjustments (“CV A”) and funding valuation adjustments (“FVA”) are included in the balance but excluded from the Valuation Technique(s) and Significant Unobservable Input(s) in the previous table. CVA is a Level 3 input when the underlying counterparty credit curve is unob servable. 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, certain equity contracts and certain long-term borrowings 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 th an a single point weighted average. (6) Includes derivative contracts with multiple risks ( i.e., hybrid products). 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 redistributi on 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 in |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 4. Derivative Instruments and Hedging Activities For a discussion of the Firm ’s derivative instruments and hedging activities , see Note 4 to the consol idated financial statements in the 2015 Form 10-K. Fair Value, Notional and Offsetting of Derivative Assets and Liabilities Derivative Assets at June 30, 2016 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 $ 3,325 $ 3,798 $ — $ 7,123 $ 34,003 $ 58,245 $ — $ 92,248 Foreign exchange contracts 88 — — 88 2,795 59 — 2,854 Total derivatives designated as accounting hedges 3,413 3,798 — 7,211 36,798 58,304 — 95,102 Derivatives not designated as accounting hedges(1): Interest rate contracts 287,757 168,366 328 456,451 3,940,102 6,615,199 1,636,768 12,192,069 Credit contracts 13,734 2,727 — 16,461 434,478 133,037 — 567,515 Foreign exchange contracts 75,891 386 140 76,417 1,851,368 16,653 21,279 1,889,300 Equity contracts 22,043 — 20,486 42,529 341,039 — 259,453 600,492 Commodity contracts 11,785 — 3,724 15,509 72,700 — 83,156 155,856 Other 16 — — 16 1,135 — — 1,135 Total derivatives not designated as accounting hedges 411,226 171,479 24,678 607,383 6,640,822 6,764,889 2,000,656 15,406,367 Total gross derivatives(2) $ 414,639 $ 175,277 $ 24,678 $ 614,594 $ 6,677,620 $ 6,823,193 $ 2,000,656 $ 15,501,469 Amounts offset: Counterparty netting (321,553) (173,222) (21,214) (515,989) Cash collateral netting (60,352) (95) — (60,447) Total derivative assets at fair value included in Trading assets $ 32,734 $ 1,960 $ 3,464 $ 38,158 Amounts not offset(3): Financial instruments collateral (12,011) — — (12,011) Other cash collateral (23) — — (23) Net exposure $ 20,700 $ 1,960 $ 3,464 $ 26,124 Derivative Liabilities at June 30, 2016 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 $ — $ — $ — $ — $ — $ 32 $ — $ 32 Foreign exchange contracts $ 492 $ 23 $ — $ 515 $ 8,348 $ 689 $ — $ 9,037 Total derivatives designated as . accounting hedges 492 23 — 515 8,348 721 — 9,069 Derivatives not designated as accounting hedges(1): Interest rate contracts 265,270 172,084 412 437,766 3,654,941 6,558,339 760,822 10,974,102 Credit contracts 14,888 2,933 — 17,821 489,656 115,979 — 605,635 Foreign exchange contracts 77,614 414 82 78,110 1,837,572 15,817 10,511 1,863,900 Equity contracts 25,633 — 20,916 46,549 342,625 — 261,986 604,611 Commodity contracts 9,390 — 3,389 12,779 68,095 — 64,896 132,991 Other 102 — — 102 4,817 — — 4,817 Total derivatives not designated as accounting hedges 392,897 175,431 24,799 593,127 6,397,706 6,690,135 1,098,215 14,186,056 Total gross derivatives(2) $ 393,389 $ 175,454 $ 24,799 $ 593,642 $ 6,406,054 $ 6,690,856 $ 1,098,215 $ 14,195,125 Amounts offset: Counterparty netting (321,553) (173,222) (21,214) (515,989) Cash collateral netting (38,378) (1,952) — (40,330) Total derivative liabilities at fair value included in Trading liabilities $ 33,458 $ 280 $ 3,585 $ 37,323 Amounts not offset(3): Financial instruments collateral (11,509) — (514) (12,023) Other cash collateral (10) (41) — (51) Net exposure $ 21,939 $ 239 $ 3,071 $ 25,249 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(4): 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 gross derivatives(2) $ 340,573 $ 106,623 $ 24,382 $ 471,578 $ 7,273,921 $ 5,936,757 $ 1,538,532 $ 14,749,210 Amounts offset: Counterparty netting (265,707) (104,294) (21,592) (391,593) Cash collateral netting (50,335) (1,037) — (51,372) Total derivative assets at fair value included in Trading assets $ 24,531 $ 1,292 $ 2,790 $ 28,613 Amounts not offset(3): Financial instruments collateral (9,190) — — (9,190) Other cash collateral (9) — — (9) Net exposure $ 15,332 $ 1,292 $ 2,790 $ 19,414 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(4): 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 gross derivatives(2) $ 324,671 $ 108,063 $ 24,616 $ 457,350 $ 6,864,262 $ 5,837,356 $ 1,372,605 $ 14,074,223 Amounts offset: Counterparty netting (265,707) (104,294) (21,592) (391,593) Cash collateral netting (33,332) (2,951) — (36,283) Total derivative liabilities at fair value included in Trading liabilities $ 25,632 $ 818 $ 3,024 $ 29,474 Amounts not offset(3): Financial instruments collateral (5,384) — (405) (5,789) Other cash collateral (5) — — (5) Net exposure $ 20,243 $ 818 $ 2,619 $ 23,680 _____________ OTC—Over-the-counter (1) Notional amounts include gross notionals related to open long and short futures contracts of $ 1,300.0 billion and $ 372.8 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 1,631 million and $ 153 million is included in Customer and other receivables and Customer and other payables, respecti vely, in the consolidated balance sheets. (2) Amounts include transactions which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Firm has not determined the agreements to be legally en forceable as follows: $ 4.8 billion of derivative assets and $ 6.3 billion of derivative liabilities at June 30, 2016 , and $ 4.2 billion of derivative assets and $ 5.2 billion of derivative liabilities at December 31, 2015 . (3) Amounts relate to master netting agreements and collateral agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsettin g accounting guidance. (4) 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 this table) of $ 1, 145 million and $ 437 million is included in Customer and other receivables and Customer and other payables, respectively, in the consolidated balance sheets. For information related to offsetting of certain collateralized transactions, see Note 6. Gains (Losses) on Fair Value Hedges Gains (Losses) Recognized in Interest Expense Three Months Ended June 30, Six Months Ended June 30, Product Type 2016 2015 2016 2015 (dollars in millions) Derivatives $ 969 $ (1,899) $ 3,119 $ (1,141) Borrowings (993) 1,861 (3,282) 1,018 Total $ (24) $ (38) $ (163) $ (123) Gains (Losses) on Derivatives Designated as Net Investment Hedges Gains (Losses) Recognized in OCI (effective portion) Three Months Ended June 30, Six Months Ended June 30, Product Type 2016 2015 2016 2015 (dollars in millions) Foreign exchange contracts(1) $ (112) $ (81) $ (336) $ 181 ____________ (1) Losses of $ 19 million and $ 39 million related to the forward points on the hedging instruments were excluded from hedge effectiveness testing and recognized in Interest income during the current quarter and current year period , respectively. Losses of $ 36 million and $ 80 million related to the forward points on the hedging instruments were excluded from hedge effectiveness testing and recognized in Interest income during the prior year quarter and prior year period , respectively. Gains (Losses) on Trading Instruments The following table 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 Firm 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 in the foll owing table are not representative of the manner in which the Firm 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 Three Months Ended Six Months Ended June 30, June 30, Product Type 2016 2015 2016 2015 (dollars in millions) Interest rate contracts $ 320 $ 355 $ 626 $ 925 Foreign exchange contracts 362 170 599 515 Equity security and index contracts(1) 1,615 1,746 2,945 3,341 Commodity and other contracts(2) 20 140 (124) 816 Credit contracts 429 380 765 719 Subtotal $ 2,746 $ 2,791 $ 4,811 $ 6,316 Debt valuation adjustments(3) — 182 — 307 Total trading revenue $ 2,746 $ 2,973 $ 4,811 $ 6,623 ____________ (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. (3) In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , unrealized DVA gains (losses) in the current quarter and current year period are recorded within OCI in the consolidated statement s of comprehensive income. In the prior year quarter and prior year period , the DVA gains (losses) were recorded within Trading revenues in the consolidated statement s of income. See Notes 2 and 14 for further informatio n. OTC Derivative Products—Trading Assets Counterparty Credit Rating and Remaining Maturity of OTC Derivative Assets Fair Value at June 30, 2016(1) Contractual 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 $ 137 $ 396 $ 1,312 $ 4,360 $ (4,953) $ 1,252 $ 1,175 AA 3,156 1,502 1,814 12,226 (12,717) 5,981 3,771 A 11,078 7,607 5,336 28,058 (38,694) 13,385 7,784 BBB 5,794 4,489 2,622 15,861 (19,993) 8,773 6,808 Non-investment grade 3,923 2,505 996 5,370 (7,514) 5,280 3,122 Total $ 24,088 $ 16,499 $ 12,080 $ 65,875 $ (83,871) $ 34,671 $ 22,660 Fair Value at December 31, 2015(1) Contractual 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 _____________ (1) Fair values shown represent the Firm ’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 with certain OTC trading agreements, the Firm 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 Firm. 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 Firm has posted collateral in the normal course of business. At June 30, 2016 (dollars in millions) Net derivative liabilities $ 28,999 Collateral posted 24,217 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 following table 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 June 30, 2016(1) (dollars in millions) One-notch downgrade $ 1,075 Two-notch downgrade 1,233 ________ (1) Amounts include $ 1,481 million related to bilateral arrangements between the Firm 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 used by the Firm to manage the risk of counterparty downgrade s . Credit Derivatives and Other Credit Contracts The Firm enters into credit derivatives, principally through credit default swaps, under which it receives or provides protection against the risk of default on a set of debt obligations issued by a specified reference entity or entities. A majority of the Firm’s counterparties are banks, broker-dealers and insurance and other financial institutions. Notional and Fair Value of Protection Sold and Protection Purchased through Credit Default Swaps At June 30, 2016 Protection Sold Protection Purchased Notional Fair Value (Asset)/Liability Notional Fair Value (Asset)/Liability (dollars in millions) Single name credit default swaps $ 347,624 $ 463 $ 338,727 $ (453) Index and basket credit default swaps 176,009 726 143,734 (771) Tranched index and basket credit default swaps 43,657 (793) 123,399 2,188 Total $ 567,290 $ 396 $ 605,860 $ 964 At December 31, 2015 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) Credit Ratings of Reference Obligation and Maturities of Credit Protection Sold At June 30, 2016 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 $ 92,734 $ 94,348 $ 48,928 $ 11,097 $ 247,107 $ (1,079) Non-investment grade 42,370 38,348 18,381 1,418 100,517 1,542 Total $ 135,104 $ 132,696 $ 67,309 $ 12,515 $ 347,624 $ 463 Index and basket credit default swaps(2): Investment grade $ 24,110 $ 39,948 $ 42,887 $ 4,060 $ 111,005 $ (1,222) Non-investment grade 51,914 28,315 13,761 14,671 108,661 1,155 Total $ 76,024 $ 68,263 $ 56,648 $ 18,731 $ 219,666 $ (67) Total credit default swaps sold $ 211,128 $ 200,959 $ 123,957 $ 31,246 $ 567,290 $ 396 Other credit contracts 43 25 — 276 344 (17) Total credit derivatives and other credit contracts $ 211,171 $ 200,984 $ 123,957 $ 31,522 $ 567,634 $ 379 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 _____________ (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 CDS, a breakdown of CDS based on the Firm’s internal credit ratings by investment grade and non-investment grade is provided. Internal credit ratings serve as the Credit Risk Management Department’s assessment of credit risk, and the basis for a comprehensive credit limits framework used to c ontrol credit risk. The Firm uses quantitative models and judgment to estimate the various risk parameters related to each obligor. Internal ratings procedures, methodologies, and models are all independently and formally governed, and models and methodolo gies are reviewed by a separate model risk management oversight function. Purchased Credit Protection with Identical Underlying Reference Obligations For single name and non-tranched index and basket credit default swaps, the Firm has purchased protection with a not ional amount of approximately $ 480.1 billion and $ 577.7 billion at June 30, 2016 and December 31, 2015 , respectively, compared with a not ional amount of approximately $ 521.9 billion and $ 619.5 billion (included in the previous tables) at June 30, 2016 and December 31, 2015 , respectively, of credit protection sold with identical un derlying reference obligations. For further information on credit derivatives and other credit contracts, see Note 4 to the consolidated financial statements in the 2015 Form 10-K . |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2016 | |
Investment securities | |
Investment Securities | 5. Investment Securities The following tables present information about the Firm ’s AFS securities, which are carried at fair value, and HTM securities, which are carried at amortized cost. The net unrealized gains or losses on AFS securities are reported on an after-tax basis as a component of AOCI. AFS and HTM Securities At June 30, 2016 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 $ 29,923 $ 213 $ 8 $ 30,128 U.S. agency securities(1) 23,221 208 22 23,407 Total U.S. government and agency securities 53,144 421 30 53,535 Corporate and other debt: Commercial mortgage-backed securities: Agency 2,139 5 31 2,113 Non-agency 2,159 36 10 2,185 Auto loan asset-backed securities 2,071 7 — 2,078 Corporate bonds 4,009 66 2 4,073 Collateralized loan obligations 502 — 7 495 FFELP student loan asset-backed securities(2) 3,345 — 105 3,240 Total corporate and other debt 14,225 114 155 14,184 Total AFS debt securities 67,369 535 185 67,719 AFS equity securities 15 — 8 7 Total AFS securities 67,384 535 193 67,726 HTM securities: U.S. government securities: U.S. Treasury securities 3,705 53 — 3,758 U.S. agency securities(1) 8,713 96 — 8,809 Total HTM securities 12,418 149 — 12,567 Total Investment securities $ 79,802 $ 684 $ 193 $ 80,293 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 ______________ U.S. agency securities consist mainly of agency-issued debt, agency mortgage pass-through pool securities and collateralized mortgage obligations . FFELP—Federal Family Education Loan Program. 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. Investment Securities in an Unrealized Loss Position At June 30, 2016 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 $ 3,028 $ 8 $ — $ — $ 3,028 $ 8 U.S. agency securities 5,731 10 1,225 12 6,956 22 Total U.S. government and agency securities 8,759 18 1,225 12 9,984 30 Corporate and other debt: Commercial mortgage-backed securities: Agency 31 — 1,181 31 1,212 31 Non-agency 216 — 625 10 841 10 Auto loan asset-backed securities 83 — 204 — 287 — Corporate bonds 172 1 175 1 347 2 Collateralized loan obligations — — 494 7 494 7 FFELP student loan asset-backed securities 583 12 2,637 93 3,220 105 Total corporate and other debt 1,085 13 5,316 142 6,401 155 Total AFS debt securities 9,844 31 6,541 154 16,385 185 AFS equity securities 7 8 — — 7 8 Total AFS securities 9,851 39 6,541 154 16,392 193 HTM securities: U.S. government and agency securities: U.S. agency securities 72 — — — 72 — Total HTM securities 72 — — — 72 — Total Investment securities $ 9,923 $ 39 $ 6,541 $ 154 $ 16,464 $ 193 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 As discussed in Note 2 to the consolidated financial statements in the 2015 Form 10-K, AFS and HTM securities with a current fair value less than their amortized cost are analyzed as part of the Firm’s ongoing assessment of temporary versus other-than-temporarily impaired at the individual security level. The Firm believes there are no securities in an unrealized loss position that are other-than-temporarily-impaired at June 30, 2016 and December 31, 2015 for the reasons discussed herein. F or AFS debt securities, the Firm 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 previous table are primarily due to higher interest rates since those securities were purchased. Additionally, the Firm does not expect to experience a credit loss based on consideration of the relevant informatio n (as discussed in Note 2 to the consolidated financial statements in the 2015 Form 10-K ), including 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 los s on securities in an unrealized loss position is considered minimal because all of the Firm’s agency securities as well as asset-backed securities (“ABS”), commercial mortgage-backed securities (“CMBS”) and collateralized loan obligations (“CLOs”) are hig hly rated and because corporate bonds are all investment grade. For AFS equity securities, the Firm has the intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in market value. See Note 12 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 . Amortized Cost, Fair Value and Annualized Average Yield of Investment Securities by Contractual Maturity Dates At June 30, 2016 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 $ 2,698 $ 2,702 0.7% After 1 year through 5 years 22,137 22,317 1.0% After 5 years through 10 years 5,088 5,109 1.4% Total 29,923 30,128 U.S. agency securities: Due within 1 year 200 200 0.7% After 1 year through 5 years 2,629 2,632 0.5% After 5 years through 10 years 1,327 1,357 1.9% After 10 years 19,065 19,218 1.6% Total 23,221 23,407 Total U.S. government and agency securities 53,144 53,535 1.2% Corporate and other debt: Commercial mortgage-backed securities: Agency: Due within 1 year 73 74 0.8% After 1 year through 5 years 404 406 1.0% After 5 years through 10 years 639 641 1.3% After 10 years 1,023 992 1.6% Total 2,139 2,113 Non-agency: After 10 years 2,159 2,185 1.9% Total 2,159 2,185 Auto loan asset-backed securities: Due within 1 year 4 4 0.9% After 1 year through 5 years 1,902 1,909 1.3% After 5 years through 10 years 165 165 1.6% Total 2,071 2,078 Corporate bonds: Due within 1 year 638 640 1.3% After 1 year through 5 years 2,655 2,695 1.8% After 5 years through 10 years 716 738 2.6% Total 4,009 4,073 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 59 59 0.6% After 5 years through 10 years 922 897 0.9% After 10 years 2,364 2,284 0.9% Total 3,345 3,240 Total corporate and other debt 14,225 14,184 1.5% Total AFS debt securities 67,369 67,719 1.3% AFS equity securities 15 7 ― % Total AFS securities 67,384 67,726 1.3% HTM securities: U.S. government securities: U.S. Treasury securities: Due within 1 year 200 201 0.7% After 1 year through 5 years 1,408 1,422 1.1% After 5 years through 10 years 1,693 1,719 1.7% After 10 years 404 416 2.5% Total 3,705 3,758 U.S. agency securities: After 10 years 8,713 8,809 2.0% Total 8,713 8,809 Total HTM securities 12,418 12,567 1.8% Total Investment securities $ 79,802 $ 80,293 1.4% Gross Realized Gains and Gross Realized (Losses) on Sales of AFS Securities Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in millions) Gross realized gains $ 71 $ 40 $ 85 $ 69 Gross realized (losses) (1) (10) (3) (14) Total $ 70 $ 30 $ 82 $ 55 Gross realized gains and losses are recognized in Other revenues in the consolidated statements of income. |
Collateralized Transactions
Collateralized Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Collateralized Transactions | |
Collateralized Transactions | 6. Collateralized Transactions The Firm 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. For further discussion of the Firm’s collateralized transactions, see Note 6 to the consolidated financial statements in the 2015 Form 10-K. Offsetting of Certain Collateralized Transactions At June 30, 2016 Gross Amounts(1) Amounts Offset Net Amounts Presented Amounts Not Offset(2) Net Exposure (dollars in millions) Assets Securities purchased under agreements to resell $ 162,813 $ (65,224) $ 97,589 $ (91,746) $ 5,843 Securities borrowed 138,436 (7,155) 131,281 (124,773) 6,508 Liabilities Securities sold under agreements to repurchase $ 115,552 $ (65,224) $ 50,328 $ (42,541) $ 7,787 Securities loaned 24,396 (7,155) 17,241 (16,724) 517 At December 31, 2015 Gross Amounts(1) Amounts Offset Net Amounts Presented Amounts Not Offset(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 _____________ (1) Amounts include transactions which are either not subject to master netting agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable as follows: $ 5.5 billion of Securities purchased under agreements to resell, $ 3.7 billion of Securities borrowed, $ 7.2 billion of Securities sold under agreements to repurchase and $ 0.4 billion of Securities loaned at June 30, 2016 , and $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 a t December 31, 2015 . (2) Amounts relate to master netting agreements that have been determined by the Firm 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 derivatives, see Note 4. Secured Financing Transactions—Maturities and Collateral Pledged Gross Secured Financing Balances by Remaining Contractual Maturity At June 30, 2016 Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total (dollars in millions) Securities sold under agreements to repurchase(1) $ 38,732 $ 30,586 $ 20,309 $ 25,925 $ 115,552 Securities loaned(1) 13,085 50 1,336 9,925 24,396 Gross amount of secured financing included in the offsetting disclosure $ 51,817 $ 30,636 $ 21,645 $ 35,850 $ 139,948 Obligation to return securities received as collateral 18,738 — — — 18,738 Total $ 70,555 $ 30,636 $ 21,645 $ 35,850 $ 158,686 At December 31, 2015 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 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 _____________ (1) Amounts are presented on a gross basis, prior to netting in the consolidated balance sheets . Gross Secured Financing Balances by Class of Collateral Pledged At June 30, 2016 At December 31, 2015 (dollars in millions) Securities sold under agreements to repurchase(1) U.S. government and agency securities $ 39,920 $ 36,609 State and municipal securities 2,104 173 Other sovereign government obligations 42,329 24,820 Asset-backed securities 745 441 Corporate and other debt 8,638 4,020 Corporate equities 21,515 18,473 Other 301 213 Total securities sold under agreements to repurchase $ 115,552 $ 84,749 Securities loaned(1) U.S. government and agency securities $ 182 $ — Other sovereign government obligations 7,454 7,336 Corporate and other debt 123 71 Corporate equities 16,602 16,972 Other 35 8 Total securities loaned $ 24,396 $ 24,387 Gross amount of secured financing included in the offsetting disclosure $ 139,948 $ 109,136 Obligation to return securities received as collateral Corporate and other debt — 3 Corporate equities 18,737 19,313 Other 1 — Total obligation to return securities received as collateral $ 18,738 $ 19,316 Total $ 158,686 $ 128,452 _____________ (1) Amo unts are presented on a gross basis, prior to netting in the consolidated balance sheets . Trading Assets Pledged The Firm 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 balance sheets . At June 30, 2016 and December 31, 2015 , the carrying value of Trading assets that have been loaned or pledged to counterparties, where those counterparties do not have the rig ht to sell or repledge the collateral, were $ 41.1 billion and $ 35.0 billion, respectively. Collateral Received The Firm receives collateral in the form of securities in connection with reverse repurchase agreements, s ecurities borrowed and derivative transactions, customer margin loans and securities-based lending. In many cases, the Firm is permitted to sell or repledge these securities held as collateral and use the securities to secure repurchase agreements, to ente r into securities lending and derivative transactions or for delivery to counterparties to cover short positions. The Firm additionally receives securities as collateral in connection with certain securities-for-securities transactions in which it is the l ender. In instances where the Firm is permitted to sell or repledge these securities, it reports the fair value of the collateral received and the related obligation to return the collateral included in Trading assets and Trading liabilities, respectively, in its consolidated balance sheet s . At June 30, 2016 and December 31, 2015 , the total fair value of financial instruments received as collateral where the Firm is permitted to sell or repledge the securities was $ 528.0 billion and $ 522.6 billion, respectively, and the fair value of the portion that had been sold or repledged was $ 407.0 billion and $ 398.1 billion, respectively. Other The Firm also engages in margin lending to clients that allows the client to borrow against the value of qualifyin g securities and is included within Customer and other receivables in the consolidated balance sheet s . Under these agreements and transactions, the Firm receives collateral, including U.S. government and agency securities, other sovereign government obligat ions, corporate and other debt, and corporate equities. Customer receivables generated from margin lending activities are collateralized by customer-owned securities held by the Firm. The Firm monitors required margin levels and established credit terms da ily and, pursuant to such guidelines, requires customers to deposit additional collateral, or reduce positions, when necessary. At June 30, 2016 and December 31, 2015 , the amounts related to margin lending were approximately $ 23.2 billion and $ 25.3 billion, respectively. For a further discussion of the Firm’s margin lending activities, see Note 6 to the consolidated financial statements in the 2015 Form 10-K. The Firm has a dditional secured liabilities. F or further discussion of other secured financings , see Note 10. Cash and Securities Deposited with Clearing Organizations or Segregated At June 30, 2016 At December 31, 2015 (dollars in millions) Securities(1) $ 23,710 $ 14,390 Other assets―Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 32,771 31,469 Total $ 56,481 $ 45,859 _____________ 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 balance sheets . |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2016 | |
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 Firm’s loans held for investment are recorded at amortized cost, and its loans held for sale are recorded at the lower of cost or fair value in the consolidated balance sheets . For a further description of these loans, refer to Note 7 to the consolidated financial statements in the 2015 Form 10-K. See Note 3 for further information regarding Loans and lending commitments held at fair value. Loans Held for Investment and Held for Sale At June 30, 2016 At December 31, 2015 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 $ 24,186 $ 14,448 $ 38,634 $ 23,554 $ 11,924 $ 35,478 Consumer loans 23,337 — 23,337 21,528 — 21,528 Residential real estate loans 22,668 84 22,752 20,863 104 20,967 Wholesale real estate loans 7,415 1,350 8,765 6,839 1,172 8,011 Total loans, gross of allowance for loan losses 77,606 15,882 93,488 72,784 13,200 85,984 Allowance for loan losses (323) — (323) (225) — (225) Total loans, net of allowance for loan losses $ 77,283 $ 15,882 $ 93,165 $ 72,559 $ 13,200 $ 85,759 ______________ Amounts include loans that are made to non-U.S. borrowers of $ 8 ,104 million and $ 9 , 789 million at June 30, 2016 and December 31, 2015 , respectively. Loans at fixed interest rates and floating or adjustable interest rates were $ 10 ,102 million and $ 83,063 million, respectively, at June 30, 2016 and $ 8,471 million and $ 77,288 million, respectively, at December 31, 2015 . Credit Quality For a further discussion about the Firm’s evaluation of credit transactions and monitoring and credit quality indicators, see Note 7 to the consolidated financial statements in the 2015 Form 10-K. Credit Quality Indicators for Loans Held for Investment, Gross of Allowance for Loan Losses, by Product Type At June 30, 2016 Corporate Consumer Residential Real Estate Wholesale Real Estate Total (dollars in millions) Pass $ 22,183 $ 23,337 $ 22,627 $ 7,191 $ 75,338 Special mention 539 — — 224 763 Substandard 1,308 — 41 — 1,349 Doubtful 156 — — — 156 Loss — — — — — Total loans $ 24,186 $ 23,337 $ 22,668 $ 7,415 $ 77,606 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 Allowance for Credit Losses and Impaired Loans For factors considered by the Firm in determining the allowance for loan losses and impairments, see Notes 2 and 7 to the consolidated financial statements in the 2015 Form 10-K. Loans by Product Type At June 30, 2016 At December 31, 2015 Corporate Residential Real Estate Total Corporate Residential Real Estate Total (dollars in millions) Impaired loans with allowance $ 244 $ — $ 244 $ 39 $ — $ 39 Impaired loans without allowance(1) 338 30 368 89 17 106 Impaired loans unpaid principal balance(2) 593 32 625 130 19 149 Past due 90 days loans and on nonaccrual 1 20 21 1 21 22 At June 30, 2016 and December 31, 2015 , 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. The impaired loans unpaid principal balance differs from the aggregate amount of impaired loan balances with and witho ut allowance due to various factors, including charge-offs and net deferred loan fees or costs. Loans by Region At June 30, 2016 At December 31, 2015 Americas EMEA Asia-Pacific Total Americas EMEA Asia-Pacific Total (dollars in millions) Impaired loans $ 589 $ 23 $ — $ 612 $ 108 $ 12 $ 25 $ 145 Past due 90 days loans and on nonaccrual 21 — — 21 22 — — 22 Allowance for loan losses 277 43 3 323 183 34 8 225 EMEA—Europe, Middle East and Africa 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, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Gross charge-offs — — — — — Gross recoveries — — — — — Net recoveries/(charge-offs) — — — — — Provision for (release of) loan losses(1) 116 (1) 1 12 128 Other(2) (30) — — — (30) Balance at June 30, 2016 $ 252 $ 4 $ 18 $ 49 $ 323 Allowance for Loan Losses by Impairment Methodology Inherent $ 147 $ 4 $ 18 $ 49 $ 218 Specific 105 — — — 105 Total allowance for loan losses at June 30, 2016 $ 252 $ 4 $ 18 $ 49 $ 323 Loans Evaluated by Impairment Methodology(3) Inherent $ 23,604 $ 23,337 $ 22,638 $ 7,415 $ 76,994 Specific 582 — 30 — 612 Total loans evaluated at June 30, 2016 $ 24,186 $ 23,337 $ 22,668 $ 7,415 $ 77,606 Allowance for Lending Commitments Balance at December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Provision for lending commitments(4) 1 — — 2 3 Other — (1) — — (1) Balance at June 30, 2016 $ 181 $ — $ — $ 6 $ 187 Allowance for Lending Commitments by Impairment Methodology Inherent $ 173 $ — $ — $ 6 $ 179 Specific 8 — — — 8 Total allowance for lending commitments at June 30, 2016 $ 181 $ — $ — $ 6 $ 187 Lending Commitments Evaluated by Impairment Methodology(3) Inherent $ 63,120 $ 5,264 $ 327 $ 496 $ 69,207 Specific 64 — — — 64 Total lending commitments evaluated at June 30, 2016 $ 63,184 $ 5,264 $ 327 $ 496 $ 69,271 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(1) 26 — 2 2 30 Other(2) (10) — — — (10) Balance at June 30, 2015 $ 135 $ 2 $ 9 $ 23 $ 169 Allowance for Loan Losses by Impairment Methodology Inherent $ 130 $ 2 $ 9 $ 23 $ 164 Specific 5 — — — 5 Total allowance for loan losses at June 30, 2015 $ 135 $ 2 $ 9 $ 23 $ 169 Loans Evaluated by Impairment Methodology(3) Inherent $ 22,479 $ 19,464 $ 18,214 $ 6,388 $ 66,545 Specific 21 — 27 — 48 Total loans evaluated at June 30, 2015 $ 22,500 $ 19,464 $ 18,241 $ 6,388 $ 66,593 Allowance for Lending Commitments Balance at December 31, 2014 $ 147 $ — $ — $ 2 $ 149 Provision for lending commitments(4) 6 — — 2 8 Balance at June 30, 2015 $ 153 $ — $ — $ 4 $ 157 Allowance for Lending Commitments by Impairment Methodology Inherent $ 153 $ — $ — $ 4 $ 157 Specific — — — — — Total allowance for lending commitments at June 30, 2015 $ 153 $ — $ — $ 4 $ 157 Lending Commitments Evaluated by Impairment Methodology(3) Inherent $ 65,183 $ 4,235 $ 289 $ 623 $ 70,330 Specific — — — — — Total lending commitments evaluated at June 30, 2015 $ 65,183 $ 4,235 $ 289 $ 623 $ 70,330 _______________ The Firm recorded provisions of $ 16 million and $ 4 million for loan losses for the current quarter and prior year quarter, respectively. Amount includes the impact related to the transfer to loans held for sale and foreign currency translation adjustments. Loan balances are gross of the allowance for loan losses, and lending commitments are gross of the allowance for lending commitments. The Firm recorded a release of $ 13 million and $ 29 million for commitments for the current quarte r and prior year quarter, respectively. Troubled Debt Restructurings At June 30, 2016 and December 31, 2015 , the impaired loans and lending commitments within held for investment include TDRs of $ 137.2 million and $ 44.0 million related to loans and $ 18.7 million and $ 34.8 million related to lending commitments, respectively, within corporate loans. At June 30, 2016 and December 31, 2015 , the Firm recorded an allowance of $ 12.1 million and $ 5.1 million, respectively, against these TDRs. These restructurings typically includ e modifications of interest rates, collateral requirements, other loan covenants, and payment extensions. 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 balance sheets. These loans are full recourse, generally require periodic payments and have repayment terms ranging from 1 to 12 years. The Firm establishes an allowance for loan amounts it does not consider recoverable, which is recorded in C ompensation and benefits expense. At June 30, 2016 , the Firm had $ 4,877 m illion of employee loans, net of an allowance of approximately $ 100 million. At December 31, 2015 , the Firm had $ 4,923 million of employee loans, net of an allowance of appro ximately $ 108 million. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures | |
Equity Method Investments | 8. Equity Method Investments Overview The Firm has investments accounted for under the equity method of accounting (see Note 1 to the consolidated financial statements in the 2015 Form 10-K) of $ 3,235 million and $ 3,144 million at June 30, 2016 and December 31, 2015, respectively, included in Other assets—Other investments in the consolidated balance sheets. Income (loss) from equity method investments was $ (14 ) million and $ 45 million for the current quarter and prior year quarter, respectively and $ 1 million and $ 83 million for the current year period and prior year period, respectively, and is included in Other revenues in the consolidated statements of income. In addition, a loss of $35 million was recognized in the current quarter in conne ction with the sale of solar investments and impairments of the remaining unsold solar investments accounted for under the equity method. Ja panese Securities Joint Venture Included in the equity method investments is t he Firm’s 40% voting interest (“40% interest”) in Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“MUMSS”). Mitsubishi UFJ Financial Group, Inc. (“MUFG”) holds a 60 % voting interest. The Firm accounts for its equity method investment in MUMSS within the Institutional Securities business segment. During the current quarter and prior year quarter , the Firm recorded income from its 40% interest in MUMSS of $ 23 million and $ 71 mi llion, respectively, and income of $ 57 million and $ 140 million in the current year period and prior year period, respectively, within Other revenues in the co nsolidated statements of income . In June 2015, MUMSS paid a dividend of approximately $ 291 milli on, of which the Firm received approximately $ 116 million for its proportionate share of MUMSS. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2016 | |
Deposits [Abstract] | |
Deposits | 9. Deposi ts Deposits At June 30, At December 31, 2016(1) 2015(1) (dollars in millions) Savings and demand deposits $ 151,014 $ 153,346 Time deposits(2) 1,679 2,688 Total(3) $ 152,693 $ 156,034 (1) Total deposits subject to the FDIC insurance at June 30, 2016 and December 31, 2015 were $110 billion and $113 billion, respectively. Of the total time deposits subject to the FDIC insurance at June 30, 2016 and December 31, 2015, $20 million and $14 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) Deposits were primarily held in the U.S. Interest bearing deposits at June 30, 2016 included $ 151,008 million of savings deposits payable upon demand and $ 1,043 million of time deposits maturing in 2016, $ 578 million of time deposits maturing in 2017 and $ 11 million of time deposits maturing in 2018. |
Long-Term Borrowings and Other
Long-Term Borrowings and Other Secured Financings | 6 Months Ended |
Jun. 30, 2016 | |
Components of Other Secured Financings | |
Long-Term Borrowings and Other Secured Financings | 10. Long-Term Borrowings and Other Secured Financings Long-Term Borrowings Components of Long-term Borrowings At June 30, 2016 At December 31, 2015 (dollars in millions) Senior debt $ 149,519 $ 140,494 Subordinated debt 11,120 10,404 Junior subordinated debentures 2,853 2,870 Total $ 163,492 $ 153,768 During the current year period and prior year period , the Firm issued notes with a principal amount of approximately $ 20.6 billion and $ 22.9 billion, respectively, and approximately $ 15.9 billion and $ 13.0 billion, respectively, in aggregate long-term borrowings matured or were retired. The w eighted average maturity of long-term borrowings, based upon stated maturity dates , w as approximately 6.3 years and 6.1 years at June 30, 2016 and December 31, 2015 , respectively. Other Secured Financings Other secured financings include the liabilities related to transfers of financial assets that are accounted for as financings rather than sales, consolidated VIEs where the Firm is deemed to be the primary beneficiary, pledged commodities, certain equity-linked notes and other secured borrowings. These liabilities are generally payable from the cash flows of the related assets accounted fo r as Trading assets . See Note 12 for further inf ormation on Other secured financings related to VIEs and securitization activities. Components of Other Secured Financings At At June 30, December 31, 2016 2015 (dollars in millions) Secured financings with original maturities greater than one year $ 8,159 $ 7,629 Secured financings with original maturities one year or less 1,444 1,435 Failed sales(1) 298 400 Total $ 9,901 $ 9,464 ___________ (1) For more information on failed sales, see Note 12. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments, Guarantees and Contingencies [Abstract] | |
Commitments, Guarantees and Contingencies | 11. Commitments, Guarantees and Contingencies Commitments The Firm’s commitments are summarized in the following table 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 June 30, 2016 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 $ 125 $ — $ 1 $ 42 $ 168 Investment activities 598 93 16 290 997 Corporate lending commitments(1) 15,625 24,405 47,248 1,501 88,779 Consumer lending commitments 5,255 5 — 4 5,264 Residential real estate lending commitments 52 43 87 236 418 Wholesale real estate lending commitments 127 266 137 69 599 Forward-starting reverse repurchase agreements and securities borrowing agreements(2) 69,990 — — — 69,990 Underwriting commitments 25 — — — 25 Total $ 91,797 $ 24,812 $ 47,489 $ 2,142 $ 166,240 (1) Due to the nature of the Firm’s obligations under the commitments, these amounts include certain commitments participated to third parties of $ 3.9 billion. ( 2 ) The Firm 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 June 30, 2016 , $ 59.7 billion settled within three business days. For a further description of these commitments, refer to Note 12 to the consolidated financial statements in the 2015 Form 10-K. The Firm 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 subscribing third-party investors contributing the majority. The Firm’s employees, including its senior officers as well as the Firm’s Board of Directors, may participate on the same terms and conditions as other investors in certain of these funds that the Firm forms primarily for client investment, except that the Firm may waive or lower applicable fees and charges for its employ ees. The Firm has contractual capital commitments, guarantees, lending facilities and counterparty arrangements with respect to these investment funds. Guarantees Obligations Under Guarantee Arrangements at June 30, 2016 Maximum Potential Payout/Notional Carrying Amount (Asset)/ Liability Collateral/ Recourse Years to Maturity Less than 1 1-3 3-5 Over 5 Total (dollars in millions) Credit derivative contracts(1) $ 211,128 $ 200,959 $ 123,957 $ 31,246 $ 567,290 $ 396 $ — Other credit contracts 43 25 — 276 344 (17) — Non-credit derivative contracts(1) 1,087,106 638,791 290,370 540,112 2,556,379 81,420 — Standby letters of credit and other financial guarantees issued(2) 803 1,091 1,250 5,888 9,032 (123) 6,831 Market value guarantees 63 250 96 15 424 2 6 Liquidity facilities 3,001 — — — 3,001 (5) 5,406 Whole loan sales guarantees — — 2 23,396 23,398 9 — Securitization representations and warranties — — — 62,180 62,180 103 — General partner guarantees 35 39 53 308 435 85 — _____________ (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 Firm’s obligations under these arrangements. The Firm has obligations under certain guarantee arrangements, including contracts and indemnification agreements , that contingently require the Firm 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. Al so included as guarantees are contracts that contingently require the Firm to make payments to the guaranteed party based on another entity’s failure to perform under an agreement, as well as indirect guarantees of the indebtedness of others. For more in formation on the nature of the obligation and related business activity for market value guarantees, liquidity facilities, whole loan sale guarantees and general partner guarantees related to certain investment management funds, as well as the other produc ts in the previous table, please see Note 12 to the consolidated financial statements in the 2015 Form 10-K. Other Guarantees and Indemnities In the normal course of business, the Firm provides guarantees and indemnifications in a variety of transactio ns. These provisions generally are standard contractual terms. Certain of these guarantees and indemnifications related to trust preferred securities, indemnities and exchange/clearinghouse member guarantees are described in Note 12 to the consolidated fin ancial statements in the 2015 Form 10-K. In addition, i n the ordinary course of business, the Firm guarantees the debt and/or certain trading obligations (including obligations associated with derivatives, foreign exchange contracts and the settlement of physical commodities) of certain subsidiaries. These guarantees generally are entity or product specific and are required by investors or trading counterparties. The activities of the Firm’s subsidiaries covered by these guarantees (including any related debt or trading obligations) are included in the consolidated financial statements . Trust Preferred Securities The Firm has established Morgan Stanley Capital Trusts for the limited purpose of issuing trust preferred securities to third parties and le nding such proceeds to the Firm in exchange for junior subordinated debentures. The Morgan Stanley Capital Trusts are SPEs, and only the Parent provides a guarantee for the trust preferred securities. The Firm has directly guaranteed the repayment of the t rust preferred securities to the holders in accordance with the terms thereof. See Note 11 to the consolidated financial statements in the 2015 Form 10-K for details on the Firm’s junior subordinated debentures. Additionally, see Note 20 for further inform ation about subsequent events. Finance Subsidiary The Parent Company fully and unconditionally guarantees the securities issued by Morgan Stanley Finance LLC, a 100%-owned finance subsidiary. Contingencies Legal . In the normal course of business, the Firm has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with its activities as a global diversified financial services institution. Certain of th e 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 o r 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 governme ntal and self-regulatory agencies has increased materially in the financial services industry. As a result, the Firm expects that it may become the subject of increased claims for damages and other relief and, while the Firm has identified below any indivi dual proceedings where the Firm believes a material loss to be reasonably possible and reasonably estimable, there can be no assurance that material losses will not be incurred from claims that have not yet been asserted or are not yet determined to be pro bable or possible and reasonably estimable losses. The Firm 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 Firm can reasonably estimate the amount of that loss, the Firm accrues the estimated loss by a charge to income. The Firm’s future legal expenses may fluctuate from period to period, given the current environment regarding government investigations and private litigation affecting global financial services firms, including the Firm. In many proceedings and investigations, however, it is inherently difficult to determine whether any loss is probable or even possi ble 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 Firm cannot reasonably estimate such losses, particularly for proceedings and investigations where the factual record is being developed or c ontested or where plaintiffs or governmental entities seek substantial or indeterminate 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 additi onal loss or range of loss or additional range of loss can be reasonably estimated for a proceeding or investigation. For certain other legal proceedings and investigations, the Firm can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but does not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on the Firm’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 Firm, styled China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al ., which is pending in the Supreme Court of the State of New York, New York County (“Supreme Court of NY”). The complaint relates to a $275 million credit default swap referencing the super senior portion of the STACK 2006-1 CDO. The complaint asserts claims for common law fraud, fraudulent inducement and fraudulent concealment and alleges that the Firm misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that the Firm 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, puniti ve damages, equitable relief, fees and costs. On February 28, 2011, the court denied the Firm’s motion to dismiss the complaint. Based on currently available information, the Firm believes it could incur a loss in this action of up to approximately $240 mi llion plus pre- and post-judgment interest, fees and costs. On January 25, 2011, the Firm was named as a defendant in The Bank of New York Mellon Trust, National Association v. Morgan Stanley Mortgage Capital, Inc ., a litigation pending in the United St ates District Court for the Southern District of New York (“SDNY”). The suit, brought by the trustee of a series of commercial mortgage pass-through certificates, alleges that the Firm breached certain representations and warranties with respect to an $81 million commercial mortgage loan that was originated and transferred to the trust by the Firm. The complaint seeks, among other things, to have the Firm repurchase the loan and pay additional monetary damages. On June 16, 2014, the court granted the Firm’s supplemental motion for summary judgment, which was appealed by plaintiff. On April 27, 2016, the United States Court of Appeals for the Second Circuit vacated the judgment of the SDNY and remanded the case to the SDNY for further proceedings consistent w ith its opinion. Based on currently available information, the Firm believes it could incur a loss in this action of up to approximately $81 million, plus pre-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 Firm. 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 trust, which had an original principal bal ance 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 in terest. On August 8, 2014, the court granted in part and denied in part the Firm’s motion to dismiss. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $149 million, the total origi nal unpaid balance of the mortgage loans for which the Firm 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 Loan Trust 2007 -4SL and Mortgage Pass-Through Certificates, Series 2007-4SL against the Firm 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 Capital Inc ., pen ding 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 respectively, 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 grant ed in part and denied in part the Firm’s motion to dismiss the complaint. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $527 million, the total original unpaid balance of the mo rtgage loans for which the Firm 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 Firm styled Morgan Stanley Mortgage Loan Trust 2006-13ARX v. Morgan Stanley Mortgage 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 other things, that the loan s 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 performance and unspecified damag es and interest. By order dated September 30, 2014, the court granted in part and denied in part the Firm’s motion to dismiss the amended complaint. On July 13, 2015, the plaintiff perfected its appeal from the court’s September 30, 2014 decision. Based on currently available information, the Firm 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 Firm received repurchase demands that it did not repurc hase, 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 Firm styled Morgan Stanley Mortgage Loan Trust 2006 -10SL, et al. v. Morgan Stanley Mortgage Capital 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 t he 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 Firm to comply with the loan breach remedy proced ures in the transaction documents, unspecified damages, and interest. On August 8, 2014, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. Based on currently available information, the Firm believes that it could incu r a loss in this action of up to approximately $197 million, the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands that it did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaint iff is seeking to expand the number 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 Firm, certain affili ates, and other defendants in the 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 r esidential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Firm to plaintiff currently at issue in this action was approximately $644 million. The complaint alleges causes of action against the Firm for common law fraud, fraudulent 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 Firm’s mo tion to dismiss the complaint. The Firm perfected its appeal from that decision on June 12, 2015. At June 25, 2016, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $258 million, and the certifi cates had incurred actual losses of approximately $84 million. Based on currently available information, the Firm believes it could incur a loss in this action up to the difference between the $258 million unpaid balance of these certificates (plus any los ses incurred) and their fair market value at the time of a judgment against the Firm, or upon sale, plus pre- and post-judgment interest, fees and costs. The Firm may be entitled to be indemnified for some of these losses. On July 8, 2013, U.S. Bank Nat ional Association, in its capacity as trustee, filed a complaint against the Firm styled U.S. Bank National Association, solely in its capacity as Trustee of the Morgan Stanley Mortgage Loan Trust 2007-2AX (MSM 2007-2AX) v. Morgan Stanley Mortgage Capital Holdings LLC, as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc. and Greenpoint Mortgage Fundin g, 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 t he trust, which had an original principal balance of approximately $650 million, breached various representations and warranties. The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction document s, unspecified damages and interest. On August 22, 2013, the Firm filed a motion to dismiss the complaint, which was granted in part and denied in part on November 24, 2014. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $240 million, the total original unpaid balance of the mortgage loans for which the Firm 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 December 30, 2013, Wilmington Trust Company, in its capacity as trustee, filed a complaint against the Firm. The matter is styled Wilmington Trust Compan y v. Morgan Stanley Mortgage Capital Holdings LLC et al. 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 trust, which had an original principal balance of approximately $516 million, breached various representations and warranties. The complaint seeks, among other relief, unspecified damages, attorneys’ fees, costs and i nterest. On February 28, 2014, the defendants filed a motion to dismiss the complaint, which was granted in part and denied in part on June 14, 2016. Based on currently available information, the Firm believes that it could incur a loss in this action of u p to approximately $152 million, the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands that it did not repurchase, plus attorney’s fees, costs and interest , but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On April 28, 2014, Deutsche Bank National Trust Company, in its capacity as trustee for Morgan Stanley Structured Trust I 2007-1, filed a complaint against the Firm styled Deutsche Bank National Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC , pending in the SDNY. 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 a pproximately $735 million, breached various representations and warranties. The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, unspecified compensatory and/or rescissory damages, interest and costs. On April 3, 2015, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $29 2 million, the total original unpaid balance of the mortgage loans for which the Firm 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 is sue and the possible range of loss could increase. On January 23, 2015, Deutsche Bank National Trust Company, in its capacity as trustee, filed a complaint against the Firm styled Deutsche Bank National Trust Company solely in its capacity as Trustee of the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 v. Morgan Stanley Mortgage Capital Holdings LLC as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc., and Morgan Stanley ABS Capital I Inc. , pending in the Supreme Court of NY. The complaint a sserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original principal balance of approximately $1.05 billion, breached various representations and warranties. The complaint seeks, among other rel ief, specific performance of the loan breach remedy procedures in the transaction documents, compensatory, consequential, rescissory , equitable and punitive damages, attorneys’ fees, costs and other related expenses, and interest. On October 20, 2015, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $277 million, the total original unpaid balanc e of the mortgage loans for which the Firm received repurchase demands from a certificate holder and a monoline insurer that the Firm 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. |
Variable Interest Entities and
Variable Interest Entities and Securitization Activities | 6 Months Ended |
Jun. 30, 2016 | |
Securitization Activities and Variable Interest Entities [Abstract] | |
Variable Interest Entity Disclosures | 12. Variable Interest Entities and Securitization Activities Overview The Firm is involved with various special purpose entities (“SPE”) in the normal course of business. In most cases, these entities are deemed to be VIEs. The Firm’s transactions with VIEs primarily include securitizations, municipal tender option bond trusts, credit protection purchased through credit-linked notes, other structured financings, collateralized loan and debt obligations, equity-linked notes, partnership investments and certain investment management funds. The Firm’s continuing involvement in VIEs that it does not consolidate can include ownership of retained interests in Firm-sponsored transactions, interests purchased in the secondary market (both for Firm-sponsored transactions and transactions sponsored by third parties), and derivatives with securitization SPEs (primarily interest rate derivatives in commercial mortgage and residential mortgage securitizations and credit derivatives in which the Firm has purchased protection in synthetic CDOs). For a further discussion on t he Firm’s VIEs, the determination and structure of VIEs and securitization activities, see Note 13 to the consolidated financial statements in the 2015 Form 10-K. As a result of adopting the accounting update, Amendments to the Consolidation Analysis , on January 1, 2016, certain consolidated entities are now considered VIEs and are included in the balances at June 30, 2016. See Note 2 for further information. Consolidated VIEs Assets and Liabilities by Type of Activity At June 30, 2016 At December 31, 2015 VIE Assets VIE Liabilities VIE Assets VIE Liabilities (dollars in millions) Credit-linked notes $ 901 $ — $ 900 $ — Other structured financings 924 240 787 13 Asset-backed securitizations(1) 319 191 668 423 Other(2) 931 29 245 — Total $ 3,075 $ 460 $ 2,600 $ 436 _________ The value of assets is determined based on the fair value of the liabilities of and the interests owned by the Firm in such VIEs, because the fair values for the liabilities and interests owned are more observable. Other primarily includes certain operating entities, investment funds and structured transactions . Assets and Liabilities by Balance Sheet Caption At June 30, At December 31, 2016 2015 Assets (dollars in millions) Cash and due from banks $ 62 $ 14 Trading assets, at fair value 1,973 1,842 Customer and other receivables 3 3 Goodwill 18 — Intangible assets 141 — Other assets 878 741 Total assets $ 3,075 $ 2,600 Liabilities Other secured financings, at fair value $ 430 $ 431 Other liabilities and accrued expenses 30 5 Total liabilities $ 460 $ 436 Consolidated VIE assets and liabilities are presented in the previous tables after intercompany eliminations. The assets owned by many consolidated VIEs cannot be removed unilaterally by the Firm and are not generally available to the Firm. The related liabilities issued by many consolidated VIEs are non-recourse to the Firm. In certain other consolidated VIEs, the Firm either has the unilateral right to remove assets or provide additional recourse through derivatives such as total return swaps, guarante es or other forms of involvement. As part of the Institutional Securities business segment’s securitization and related activities, the Firm has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Firm (see Note 11 ). In general, the Firm ’s exposure to loss in consolidated VIEs is limited to losses that would be absorbed on the VIE’s net assets recognized in its financial statements, n et of amounts absorbed by third-party variable interest holders. At June 30, 2016 and December 31, 2015 , n oncontrol ling interests in the c onsoli dated financial statements related to consolidated VIEs were $ 257 million and $ 37 mi llion, respectively. The Firm also had additional maximum exposure to losses of approximately $ 76 million and $ 72 million at June 30, 2016 and December 31, 2015 , respectively , primarily related to certain derivatives, c ommitments, guarantees and other forms of involvement . Non- consolidated VIEs T he following tables include all VIEs in which the Firm 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 following tables a re sponsored by unrelated parties; the Firm ’s involvement generally is the result of i ts secondary market-making activities, securities held in its Investment securities portfolio (see Note 5), and certain investments in funds. Non-Consolidated VIE Assets and Liabilities, Maximum and Carrying Value of Exposure to Loss At June 30, 2016 Mortgage- and Asset-Backed Securitizations Collateralized Debt Obligations Municipal Tender Option Bonds Other Structured Financings Other (dollars in millions) VIE assets that the Firm does not consolidate (unpaid principal balance) $ 115,088 $ 6,825 $ 4,999 $ 4,081 $ 39,281 Maximum exposure to loss: Debt and equity interests $ 12,670 $ 955 $ 31 $ 1,712 $ 4,706 Derivative and other contracts — — 3,001 — 73 Commitments, guarantees and other 612 350 — 363 300 Total maximum exposure to loss $ 13,282 $ 1,305 $ 3,032 $ 2,075 $ 5,079 Carrying value of exposure to loss—Assets: Debt and equity interests $ 12,670 $ 955 $ 3 $ 1,324 $ 4,706 Derivative and other contracts — — 5 — 27 Total carrying value of exposure to loss—Assets $ 12,670 $ 955 $ 8 $ 1,324 $ 4,733 Carrying value of exposure to loss—Liabilities: Derivative and other contracts $ — $ — $ — $ — $ 31 Commitments, guarantees and other — — — 2 10 Total carrying value of exposure to loss—Liabilities $ — $ — $ — $ 2 $ 41 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 Firm does not consolidate (unpaid principal balance) $ 126,872 $ 8,805 $ 4,654 $ 2,201 $ 20,775 Maximum exposure to loss: Debt and equity interests $ 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 $ 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 Non-Consolidated VIE Mortgage- and Asset-Backed Securitization Assets At June 30, 2016 At December 31, 2015 Unpaid Principal Balance Debt and Equity Interests Unpaid Principal Balance Debt and Equity Interests (dollars in millions) Residential mortgages $ 3,708 $ 410 $ 13,787 $ 1,012 Commercial mortgages 55,158 2,576 57,313 2,871 U.S. agency collateralized mortgage obligations 20,853 3,766 13,236 2,763 Other consumer or commercial loans 35,369 5,918 42,536 6,715 Total mortgage- and asset-backed securitization assets $ 115,088 $ 12,670 $ 126,872 $ 13,361 The Firm’s maximum exposure to loss often differs from the carrying value of the variable interests held by the Firm. The maximum exposure to loss is dependent on the nature of the Firm’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 Firm has made in the VIEs. Liabilities issued by VIEs generally are non-recourse to the Firm. 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 Firm. The Firm’s maximum exposure to loss does not include the offsetting ben efit of any financial instruments that the Firm may utilize to hedge these risks associated with its variable interests. In addition, the Firm’s maximum exposure to loss is not reduced by the amount of collateral held as part of a transaction with the VIE or any party to the VIE directly against a specific exposure to loss. Securitization transactions generally involve VIEs. Primarily as a result of its secondary market-making activities, the Firm owned additional VIE assets mainly issued by securitization SPEs for which the maximum exposure to loss is less than specific thresholds. These additional assets totaled $ 12.7 billion and $ 12.9 billion at June 30, 2016 and December 31, 2015 , respectively. These assets were either reta ined in connection with transfers of assets by the Firm, acquired in connection with secondary market-making activities or held as AFS securities in its Investment securities portfolio (see Note 5) or held as investments in funds. At June 30, 2016 and December 31, 2015 , these assets consisted of securities backed by residential mortgage loans, commercial mortgage loans or other consumer loans, such as credit card receivables, automobile loans and student loans, CDOs or CLOs, and investment fund s. The Firm’s primary risk exposure is to the securities issued by the SPE owned by the Firm, with the risk highest on the most subordinate class of beneficial interests. These assets generally are included in Trading assets—Corporate and other debt, Tradi ng assets—Investments or AFS securities within its Investment securities portfolio and are measured at fair value (see Note 3). The Firm does not provide additional support in these transactions through contractual facilities, such as liquidity faciliti es, guarantees or similar derivatives. The Firm’s maximum exposure to loss generally equals the fair value of the assets owned. Transfers of Assets with Continuing Involvement Transactions with SPEs in which the Firm, acting as principal, transferred financial assets with continuing involvement and received sales treatment are shown herein. At June 30, 2016 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) $ 21,239 $ 51,025 $ 11,116 $ 11,668 Retained interests (fair value): Investment grade $ — $ 43 $ 755 $ — Non-investment grade 54 64 — 974 Total retained interests (fair value) $ 54 $ 107 $ 755 $ 974 Interests purchased in the secondary market (fair value): Investment grade $ — $ 32 $ 142 $ — Non-investment grade 53 47 — — Total interests purchased in the secondary market (fair value) $ 53 $ 79 $ 142 $ — Derivative assets (fair value) $ — $ 291 $ — $ 206 Derivative liabilities (fair value) — — — 449 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 _____________ (1) Amounts i nclude CLO transactions managed by unrelated third parties. ( 2 ) Amounts include assets transferred by unrelated transferors. At June 30, 2016 Level 1 Level 2 Level 3 Total (dollars in millions) Retained interests (fair value): Investment grade $ — $ 798 $ — $ 798 Non-investment grade — 15 1,077 1,092 Total retained interests (fair value) $ — $ 813 $ 1,077 $ 1,890 Interests purchased in the secondary market (fair value): Investment grade $ — $ 174 $ — $ 174 Non-investment grade — 85 15 100 Total interests purchased in the secondary market (fair value) $ — $ 259 $ 15 $ 274 Derivative assets (fair value) $ — $ 482 $ 15 $ 497 Derivative liabilities (fair value) — 102 347 449 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 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 Firm 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 Firm may retain interests in the securitized financial assets as one or more tranches of the securitization. These retained int erests are included in the consolidated balance sheets at fair value. Any changes in the fair value of such retained interests are recognized in the consolidated statements of income. Proceeds from New Securitization Transactions and Retained Interests in Securitization Transactions Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in millions) Proceeds received from new securitization transactions $ 4,163 $ 6,273 $ 6,876 $ 11,164 Proceeds from retained interests in securitization transactions 502 658 1,133 1,606 Net gains on sale of assets in securitization transactions at the time of the sale were not material in the current quarter, current year period , prior year quarter and prior year period . The Firm has provided, or otherwise agreed to be responsible for representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Firm (see Note 11 ). Proceeds from Sales to CLO Entities Sponsored by Non-Affiliates Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in millions) Proceeds from sale of corporate loans sold to those SPEs $ — $ 621 $ 31 $ 966 Net gains on sale of corporate loans to CLO transactions at the time of sale were not material in the current quarter, current year period , prior year quarter and prior year period . The Firm 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 as shown in the following t able. At June 30, 2016 At December 31, 2015 (dollars in millions) Carrying value of assets derecognized at the time of sale and gross cash proceeds $ 9,524 $ 7,878 Fair value of assets sold 9,692 7,935 Fair value of derivative assets recognized in the consolidated balance sheets 218 97 Fair value of derivative liabilities recognized in the consolidated balance sheets 50 40 Failed Sales For transfers that fail to meet the accounting criteria for a sale, the Firm continues to recognize the assets in Trading assets at fair value, and the Firm recognizes the associated liabilities in Other secured financings at fair value in the consolidated balance sheets (see Note 10 ). The assets transferred to unconsolidated VIEs in transactions accounted for as failed sales cannot be removed unilaterally by the Firm and are not generally available to the Firm. The related liabi lities are also non-recourse to the Firm. In certain other failed sale transactions, the Firm 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 June 30, 2016 At December 31, 2015 Assets Liabilities Assets Liabilities (dollars in millions) Failed sales $ 298 $ 298 $ 400 $ 400 |
Regulatory Requirements
Regulatory Requirements | 6 Months Ended |
Jun. 30, 2016 | |
Regulatory Requirements | |
Regulatory Requirements | 13. Regulatory Requirements Regulatory Capital Framework For a discussion of the Firm’s regulatory capital framework, see Note 14 to the consolidated financial statements in the 2015 Form 10-K. Risk-Based Capital R equirement The Firm is required to maintain minimum risk-based and leverage capital ratios under the regulatory capital requirements. The Firm’s binding risk-based capital ratios for regulatory purposes are the lower of the capital ratios computed under the ( i ) standardized approaches for calculating credit risk-weighted assets (“RWAs”) and market risk RWAs (the “Standardized Approach”); and (ii) applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (the “Advanced Approach”). In a ddition to the minimum risk-based capital ratio requirements, on a fully phased-in basis by 2019, the Firm will be subject to: A greater than 2.5% Common Equity Tier 1 capital conservation buffer; The Common Equity Tier 1 global systemically important bank (“G-SIB”) capital surcharge, currently at 3%; and Up to a 2.5% Common Equity Tier 1 countercyclical capital buffer, currently set by banking regulators at zero (collectively, the “buffers”). In 2016, the phase-in amount for each of the buffers is 25% o f the fully phased-in buffer requirement. Failure to maintain the buffers will result in restrictions on the Firm’s ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to e xecutive officers. The methods for calculating each of the Firm’s risk-based capital ratios will change through January 1, 2022 as aspects of the capital rules are phased in. These changes may result in differences in the Firm’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. For a further discussion of the Firm’s calculation of risk-based capital ratios, see Note 14 to the consolidated financial statements in the 2015 Form 10-K. The Firm’s Regulatory Capital and Capital Ratios At June 30, 2016 and December 31, 2015 , the Firm’s binding ratios are based on the Advanced Approach transitional rules. Regulatory Capital Measures and Minimum Regulatory Capital Ratios At June 30, 2016 At December 31, 2015 Amount Ratio Minimum Ratio(1) Amount Ratio Minimum Ratio(1) (dollars in millions) Regulatory capital and capital ratios: Common Equity Tier 1 capital $ 59,796 16.8% 5.9% $ 59,409 15.5% 4.5% Tier 1 capital 66,782 18.8% 7.4% 66,722 17.4% 6.0% Total capital 79,830 22.4% 9.4% 79,403 20.7% 8.0% Tier 1 leverage(2) — 8.3% 4.0% — 8.3% 4.0% Assets: Total RWAs $ 355,982 N/A N/A $ 384,162 N/A N/A Adjusted average assets(3) 804,511 N/A N/A 803,574 N/A N/A __________ N/A—Not Applicable (1) Percentages represent minimum regulatory capital ratios under the transitional rules. (2) Tier 1 leverage ratios are calculated under Standardized Approach transitional rules. (3) 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. U.S. Bank Subsidiaries ’ Regulatory Capital and Capital Ratios Morgan Stanley Bank, N.A. (“MSBNA”) and Morgan Stanley Private Bank, National Association (“MSPBNA”) (collectively, “U.S. Bank Subsidiaries”) are subject to similar regulatory capital requirements as the Firm. 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 Firm’s U .S. Bank Subsidiaries ’ financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, each of the Firm’s U.S. Bank Subsidiaries must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. At June 30, 2016 and December 31, 2015 , the Firm’s U.S. Bank Subsidiaries’ binding ratios are based on the Standardized Approach t ransitional rules. U.S. Bank Subsidiaries’ Regulatory Capital Measures and Required Capital Ratios Morgan Stanley Bank, N.A. At June 30, 2016 At December 31, 2015 Amount Ratio Required Capital Ratio(1) Amount Ratio Required Capital Ratio(1) (dollars in millions) Common Equity Tier 1 capital $ 14,523 16.8% 6.5% $ 13,333 15.1% 6.5% Tier 1 capital 14,523 16.8% 8.0% 13,333 15.1% 8.0% Total capital 16,321 18.9% 10.0% 15,097 17.1% 10.0% Tier 1 leverage 14,523 10.9% 5.0% 13,333 10.2% 5.0% Morgan Stanley Private Bank, National Association At June 30, 2016 At December 31, 2015 Amount Ratio Required Capital Ratio(1) Amount Ratio Required Capital Ratio(1) (dollars in millions) Common Equity Tier 1 capital $ 5,153 28.0% 6.5% $ 4,197 26.5% 6.5% Tier 1 capital 5,153 28.0% 8.0% 4,197 26.5% 8.0% Total capital 5,186 28.2% 10.0% 4,225 26.7% 10.0% Tier 1 leverage 5,153 11.4% 5.0% 4,197 10.5% 5.0% _______ (1) Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. Under regulatory capital requirements adopted by the U.S. federal banking agencies, U.S. depository institutions, in order to be considered well-capitalized, must maintain certain minimum capital ratios. Each U.S. depository institution subsidiary of the Firm must be well-capitalized in order for the Firm 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 June 30, 2016 and December 31, 2015 , the Firm’s U.S. Bank 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 re gulators. Broker-Dealer Regulatory Capital Requirements Morgan Stanley & Co. LLC (“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. Secu rities and Exchange Commission (“SEC”) and the U.S. Commod ity Futures Trading Commission (“CFTC”). MS&Co. has consistently operated with capital in excess of its regulatory capital requirements. MS&Co.’s net capital totaled $ 10,353 million and $ 10,254 mill ion at June 30, 2016 and December 31, 2015 , respectively, which exceeded the amount required by $ 8,397 million and $ 8,458 million, respectively . MS&Co. is required to hold tentative net capital in excess of $ 1 billion and net capital in excess of $ 500 million in accordance with the market and credit risk standards of Appendix E of SEC Rule 15c3-1. In addition, MS&Co. is required to notify the SEC in the event that its tentative net capital is less than $ 5 billion. At June 30, 2016 and Decembe r 31, 2015 , MS&Co. had tentative net capital in excess of the minimum and the notification requirements. Morgan Stanley Smith Barney LLC (“MSSB LLC”) is a registered broker- dealer and introducing broker for the futures business and, accordingly, is su bject 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 $ 3,752 million and $ 3,613 million at June 30, 2016 and December 31, 2015 , respectively, which exceeded the amount required by $ 3,595 million and $ 3,459 million, respectively. Morgan Stanley & Co. International plc (“MSIP”), a London-based broker-dealer subsidiary, is subject to the capital requireme nts of the Prudential Regulation Authority, and Morgan Stanley MUFG Securities Co., Ltd. (“MSMS”), a Tokyo-based broker-dealer subsidiary, is subject to the capital requirements of the Financial Services Agency. MSIP and MSMS have consistently operated wit h capital in excess of their respective regulatory capital requirements. Other Regulated Subsidiaries Certain other U.S. and non-U.S. subsidiaries of the Firm are subject to various securities, commodities and banking regulations, and capital adequa cy 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. |
Total Equity
Total Equity | 6 Months Ended |
Jun. 30, 2016 | |
Redeemable Noncontrolling Interests and Total Equity | |
Total Equity | 14. Total Equi ty Dividends and Share Repurchases The Firm repurchased approximately $ 625 million of our outstanding common stock as part of our share repurchase program during the current quarter and $ 1,250 million during the current year period. The Firm repurchased approximately $ 625 million during the prior year quarter and $ 875 million in the prior year period. For a description of the 2015 capital plan, see Note 15 to the consolidated financial statements in the 2015 Form 10-K. In June 2016, the Firm received a conditional non- objection from the Federal Reserve to its 2016 capital plan. The capital plan included a share repurchase of up to $ 3.5 billion of the Firm’s outstanding common stock during the period beginning July 1, 2016 through June 30, 2017. Addition ally, the capital plan included an increase in the quarterly common stock dividend to $0.20 per share from $0.15 per share during the period beginning with the dividend declared on July 20, 2016 (see Note 20). The Federal Reserve Board also asked the Firm to submit an additional capital plan by December 29, 2016 addressing weaknesses identified in the Firm’s capital planning process. Preferred Stock For a description of Series A through Series J preferred stock issuances, see Note 15 to the consolidated f inancial statements in the 2015 Form 10-K. D ividends declared on the Firm’s outstanding preferred stock were $ 156 million during the current quarter and $141 million during the prior year quarter , and $ 234 million during the current year period and $219 million during the prior year period . On June 15, 2016, the Firm announced that the Board declared a quarterly dividend for pref erred stock shareholders of record on June 30, 2016 that was paid on July 15, 2016 . The Firm is authorized to issue 30 million shares of preferred stock. The preferred stock has a preference over the common stock upon liquidation. The Firm’s preferred stoc k qualifies as Tier 1 capital in accordance with regulatory capital requirements (see Note 13 ) . Preferred Stock Outstanding Shares Carrying Value Outstanding Liquidation At At At June 30, Preference June 30, December 31, Series 2016 per Share 2016 2015 (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 1,500 Total $ 7,520 $ 7,520 ____________ (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. Accumulated Other Comprehensive Income (Loss ) Changes in AOCI by Component, Net of Tax and Noncontrolling Interests Foreign Currency Translation Adjustments AFS Securities Pensions, Postretirement and Other DVA Total (dollars in millions) Balance at March 31, 2016 $ (831) $ 76 $ (373) $ (110) $ (1,238) Change in OCI before reclassifications 52 188 (5) 143 378 Amounts reclassified from AOCI(2)(3) — (45) — — (45) Net OCI during the period 52 143 (5) 143 333 Balance at June 30, 2016 $ (779) $ 219 $ (378) $ 33 $ (905) Foreign Currency Translation Adjustments Change in Net Unrealized Gains (Losses) on AFS Securities Pensions, Postretirement and Other Debt Valuation Adjustment Total (dollars in millions) Balance at March 31, 2015 $ (883) $ 127 $ (510) $ — (1,266) Change in OCI before reclassifications 50 (208) (4) — (162) Amounts reclassified from AOCI(3) — (20) 1 — (19) Net OCI during the period 50 (228) (3) — (181) Balance at June 30, 2015 $ (833) $ (101) $ (513) $ — (1,447) Foreign Currency Translation Adjustments Change in Net Unrealized Gains (Losses) on AFS Securities Pensions, Postretirement and Other Debt Valuation Adjustment Total (dollars in millions) Balance at December 31, 2015 $ (963) $ (319) $ (374) $ — $ (1,656) Cumulative adjustment for accounting change related to DVA(1) — — — (312) (312) Change in OCI before reclassifications 184 590 (3) 371 1,142 Amounts reclassified from AOCI(2)(3) — (52) (1) (26) (79) Net OCI during the period 184 538 (4) 345 1,063 Balance at June 30, 2016 $ (779) $ 219 $ (378) $ 33 $ (905) Balance at December 31, 2014 $ (663) $ (73) $ (512) $ — $ (1,248) Change in OCI before reclassifications (170) 7 (4) — (167) Amounts reclassified from AOCI(3) — (35) 3 — (32) Net OCI during the period (170) (28) (1) — (199) Balance at June 30, 2015 $ (833) $ (101) $ (513) $ — $ (1,447) ___________ In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , a cumulative catch up adjustment was recorded as of January 1, 2016 to move the cumulative DVA amount, net of noncontrolling interest and tax, related to outstanding liabilities under the fair value option election from Retained earnings into AOCI. See Note 2 for further information. A mounts reclassified from AOCI related to realization of DVA are classified within Trading revenues in the consolid ated statements of income. The tax impact in Provision for (benefit from) income taxes resulting from such reclassifications was $ (15) million related to DVA in the current year period. See Note 2 for f urther information . Amounts reclassified from AOCI related to realized gains and losses from sales of AFS securities are classified within Other revenues in the consolid ated statements of income. The tax impact in Provision for (benefit from) income taxes resulting from such reclassifications was $ (26) million in the current quarter and $ (30) million in the current year period , and $ (11) million in the prior quarter and $ (20) mi llion for the prior year period . Noncontrolling Interests Noncontrolling interests were $ 1,259 million and $ 1,002 million at June 30, 2016 and December 31, 2015 , respectively. The increase in noncontrolling interests was primarily due to the consolidation of certain investment management funds sponsored by the Firm. See Note 2 for further information on the adoption of the accounting update Amendments to the Consolidation Analysis . |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 15. Earnings per Common Shar e Calculation of Basic and D iluted Earnings per Common Share (“EPS”) Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (in millions, except for per share data) Basic EPS: Income from continuing operations $ 1,650 $ 1,833 $ 2,810 $ 4,301 Income (loss) from discontinued operations (4) (2) (7) (7) Net income 1,646 1,831 2,803 4,294 Net income applicable to noncontrolling interests 64 24 87 93 Net income applicable to Morgan Stanley 1,582 1,807 2,716 4,201 Less: Preferred stock dividends (156) (141) (234) (219) Less: Allocation of (earnings) loss to participating RSUs(1) (1) (1) (1) (3) Earnings applicable to Morgan Stanley common shareholders $ 1,425 $ 1,665 $ 2,481 $ 3,979 Weighted average common shares outstanding 1,866 1,919 1,875 1,922 Earnings per basic common share: Income from continuing operations $ 0.77 $ 0.87 $ 1.33 $ 2.07 Income (loss) from discontinued operations (0.01) — (0.01) — Earnings per basic common share $ 0.76 $ 0.87 $ 1.32 $ 2.07 Diluted EPS: Earnings applicable to Morgan Stanley common shareholders $ 1,425 $ 1,665 $ 2,481 $ 3,979 Weighted average common shares outstanding 1,866 1,919 1,875 1,922 Effect of dilutive securities: Stock options and RSUs(1) 33 41 32 40 Weighted average common shares outstanding and common stock equivalents 1,899 1,960 1,907 1,962 Earnings per diluted common share: Income from continuing operations $ 0.75 $ 0.85 $ 1.30 $ 2.03 Income (loss) from discontinued operations — — — — Earnings per diluted common share $ 0.75 $ 0.85 $ 1.30 $ 2.03 _____________ (1) Restricted stock units (“RSUs”) that are considered participating securities are treated as a separate class of securities in the computation of basic EPS, and, therefore, such RSUs are not included as incremental shares in the diluted EPS computations . The diluted EPS computations also do not include weighted average antidilutive RSUs and antidilutive stock options of 14 million shares and 12 million shares for the current quarter and prior year quarter, respectively, and 15 million shares a nd 12 million s hares for the current year period and prior year period, respectively. |
Interest Income and Interest Ex
Interest Income and Interest Expense | 6 Months Ended |
Jun. 30, 2016 | |
Interest Income And Interest Expense | |
Interest Income And Interest Expense | 16. Inter est Income and Interest Expense Interest Income and Interest Expense Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in millions) Interest income(1): Trading assets(2) $ 526 $ 555 $ 1,109 $ 1,149 Investment securities 237 238 473 438 Loans 680 529 1,327 1,004 Interest bearing deposits with banks 52 22 105 45 Securities purchased under agreements to resell and Securities borrowed(3) (120) (200) (198) (305) Customer receivables and Other(4) 292 242 598 539 Total interest income $ 1,667 $ 1,386 $ 3,414 $ 2,870 Interest expense(1): Deposits $ 15 $ 17 $ 37 $ 35 Short-term borrowings 7 5 14 9 Long-term borrowings 844 915 1,804 1,841 Securities sold under agreements to repurchase and Securities loaned(5) 259 235 513 543 Customer payables and Other(6) (371) (484) (766) (852) Total interest expense $ 754 $ 688 $ 1,602 $ 1,576 Net interest $ 913 $ 698 $ 1,812 $ 1,294 _____________ (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) In cludes 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 customers for stock loan transa ctions incurred to cover customers’ short positions. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
Employee Benefit Plans | |
Employee Benefit Plans | 17. Employee Benefit Plans The Firm sponsors various retirement plans for the majority of its U.S. and non-U.S. employees. The Firm provides certain other postretirement benefits, primarily health care and life insurance, to eligible U.S. employees. Components of Net Periodic Benefit Expense (Income) for Pension and Other Postretirement Plans Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in millions) Service cost, benefits earned during the period $ 4 $ 5 $ 8 $ 10 Interest cost on projected benefit obligation 39 38 77 77 Expected return on plan assets (30) (29) (60) (59) Net amortization of prior service credit (5) (5) (9) (10) Net amortization of actuarial loss 3 7 6 13 Net periodic benefit expense $ 11 $ 16 $ 22 $ 31 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Taxes | |
Income Taxes | 18. Income Taxes The Firm is under continuous examination by the Internal Revenue Service (the “IRS”) and other tax authorities in certain countries, such as Japan and the United Kingdom (“U.K.”), and in states in which it has significant business operations, such as New York. The Firm is currently at various levels of field examination with respect to audits by the IRS, as well as New York State and Ne w York City, for tax years 2009-2012 and 2007- 2009, respectively. The Firm believes that the resolution of these tax matters w ill not have a material effect i n the consolidated balance sheets , although a resolution could have a material impact i n the consolidated statement s of income for a particular future period and on the effective tax rate for any period in which such resolution occurs. In April 2016, the Firm received a notification from the IRS that the Congressional Joint Committee on Taxation approved the final report of an Appeals Office review of matters from tax years 1999-2005 , and the Revenue Agent’s Report reflecting agreed clo sure of the 2006-2008 tax years . The Firm has reserved the right to contest certain items, associated with tax years 1999-2005 , the resolution of which is not expected to have a material impact on the effect ive tax rate or the consolidated financial statements. During 2016, the Firm 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 Firm has established a liability for unrecognized tax benefits that it believes is adequate in relation to the potential for additional assessments. Once established, the Firm adjusts liabilities for unrecognized tax benefits only when more information is available or when an event occurs necessitating a change. It is reasonably possible that significant changes in the balance of unrecognized tax benefits may occur wi thin the next 12 months related to certain tax authority examinations referred to herein . 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 Firm’s eff ective tax rate over the next 12 months. The Firm’s effective tax rate from continuing operations for the prior year period included a net discrete tax benefit of $ 564 million. This net discrete tax benefit was 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 Firm’s legal entity organization in the U.K. |
Segment and Geographic Informat
Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment And Geographic Information | 19 . Segment and Geographic Information Segment Information For a discussion about the Firm’s business segments, see Note 21 to the consolidated financial statements in the 2015 Form 10-K. Selected Financial Information Three Months Ended June 30, 2016 Institutional Securities(1) Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues(2)(3) $ 4,496 $ 2,982 $ 581 $ (63) $ 7,996 Interest income 966 920 3 (222) 1,667 Interest expense 884 91 1 (222) 754 Net interest 82 829 2 — 913 Net revenues $ 4,578 $ 3,811 $ 583 $ (63) $ 8,909 Income from continuing operations before income taxes $ 1,506 $ 859 $ 118 $ — $ 2,483 Provision for income taxes 453 343 37 — 833 Income from continuing operations 1,053 516 81 — 1,650 Income (loss) from discontinued operations, net of income taxes (4) — — — (4) Net income 1,049 516 81 — 1,646 Net income applicable to noncontrolling interests 61 — 3 — 64 Net income applicable to Morgan Stanley $ 988 $ 516 $ 78 $ — $ 1,582 Three Months Ended June 30, 2015 Institutional Securities(1) Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues(2)(3) $ 5,205 $ 3,138 $ 757 $ (55) $ 9,045 Interest income 723 782 — (119) 1,386 Interest expense 756 45 6 (119) 688 Net interest (33) 737 (6) — 698 Net revenues $ 5,172 $ 3,875 $ 751 $ (55) $ 9,743 Income from continuing operations before income taxes $ 1,622 $ 885 $ 220 $ — $ 2,727 Provision for income taxes 511 324 59 — 894 Income from continuing operations 1,111 561 161 — 1,833 Income (loss) from discontinued operations, net of income taxes (2) — — — (2) Net income 1,109 561 161 — 1,831 Net income applicable to noncontrolling interests 22 — 2 — 24 Net income applicable to Morgan Stanley $ 1,087 $ 561 $ 159 $ — $ 1,807 Six Months Ended June 30, 2016 Institutional Securities(1) Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues(2)(3) $ 8,141 $ 5,819 $ 1,059 $ (130) $ 14,889 Interest income 2,019 1,834 4 (443) 3,414 Interest expense 1,868 174 3 (443) 1,602 Net interest 151 1,660 1 — 1,812 Net revenues $ 8,292 $ 7,479 $ 1,060 $ (130) $ 16,701 Income from continuing operations before income taxes $ 2,414 $ 1,645 $ 162 $ — $ 4,221 Provision for income taxes 728 636 47 — 1,411 Income from continuing operations 1,686 1,009 115 — 2,810 Income (loss) from discontinued operations, net of income taxes (7) — — — (7) Net income 1,679 1,009 115 — 2,803 Net income applicable to noncontrolling interests 100 — (13) — 87 Net income applicable to Morgan Stanley $ 1,579 $ 1,009 $ 128 $ — $ 2,716 Six Months Ended June 30, 2015 Institutional Securities(1) Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues(2)(3) $ 10,751 $ 6,283 $ 1,431 $ (109) $ 18,356 Interest income 1,593 1,519 1 (243) 2,870 Interest expense 1,714 93 12 (243) 1,576 Net interest (121) 1,426 (11) — 1,294 Net revenues $ 10,630 $ 7,709 $ 1,420 $ (109) $ 19,650 Income from continuing operations before income taxes $ 3,435 $ 1,740 $ 407 $ — $ 5,582 Provision for income taxes(4) 517 644 120 — 1,281 Income from continuing operations 2,918 1,096 287 — 4,301 Income (loss) from discontinued operations, net of income taxes (7) — — — (7) Net income 2,911 1,096 287 — 4,294 Net income applicable to noncontrolling interests 74 — 19 — 93 Net income applicable to Morgan Stanley $ 2,837 $ 1,096 $ 268 $ — $ 4,201 (1) In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , for the current quarter and current year period DVA gains (losses) are recorded within OCI when unrealized and in Trading revenues when realized. In the prior year quarter and prior year period, the realized and unrealized DVA gains (losses) are recorded in Trading revenues. See Notes 2 and 14 for furth er information. (2) In certain management fee arrangements, the Firm 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 benchmark ret urns 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 agreement. The Fi rm’s portion of unrealized cumulative amount of performance-based fee revenue (for which the Firm is not obligated to pay compensation) at risk of reversing if fund performance falls below stated investment management agreement benchmarks was approximately $ 421 million and $ 422 million at June 30, 2016 and December 31, 2015, respectively. See Note 11 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received . (3) The Firm waiv es a portion of its fees from certain registered money market funds that comply with the requirements of Rule 2a-7 of the Investment Company Act of 1940. These fee waivers resulted in a reduction of fees of approximately $ 12 million a nd $ 50 million for the current quarter and prior year quarter, respectively, and $ 35 million and $ 100 million for the current year period and prior year period, respectively. (4 ) The Firm’s effective tax rate from continuing operations for the prior yea r period included a net discrete tax benefit of $ 564 million, within Institutional Securities (see Note 18). Total Assets by Business Segment At June 30, At December 31, 2016 2015 (dollars in millions) Institutional Securities $ 641,373 $ 602,714 Wealth Management 182,801 179,708 Investment Management 4,699 5,043 Total(1) $ 828,873 $ 787,465 (1) Corporate assets have been fully allocated to the business segments. Geographic Information For a discussion about the Firm’s geographic net revenues, see Note 21 to the consolidated financial statements in the 2015 Form 10-K. Net Revenues by Region Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in millions) Americas $ 6,538 $ 6,777 $ 12,290 $ 13,707 EMEA 1,312 1,436 2,441 3,198 Asia-Pacific 1,059 1,530 1,970 2,745 Net revenues $ 8,909 $ 9,743 $ 16,701 $ 19,650 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events | |
Subsequent Events | 20 . Subsequent Events The Firm has evaluated subsequent events for adjustment to or disclosure in the 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 July 20 , 2016, the Firm announced that its Board of Directors declared a quarterly dividend per common share of $0. 20 . The dividend is payable on August 15, 201 6 to common shareholders of record on July 29, 2016. Long-Term Borrowings Subsequent to June 3 0 , 201 6 and through July 29 , 201 6 , long-term borrowings increased by approximately $3.4 billion, net of redemptions. This amount includes the issuance of $ 3.0 billion of senior debt on July 25 , 2016 . Trust Preferred Securities On July 19, 2016, the Firm announced that Morgan Stanley Capital Trust III, Morgan Stanley Capital Trust IV and Morgan Stanley Capital Trust V will redeem all of their issued and outsta nding Capital Securities on August 18, 2016, and that Morgan Stanley Capital Trust VIII will redeem all of its issued and outstanding Capital Securities on August 3, 2016, pursuant to the optional redemption provisions provided in the respective governing documents. In the aggregate, $ 2.8 billion will be redeemed. The Firm will concurrently redeem the related underlying junior subordinated debentures. . |
Significant Accounting Polici28
Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Significant Accounting Policies | |
Accounting Standard Adopted | Accounting Standards Adopted The Firm adopted the following accounting updates as of January 1, 2016 . Recognition and Measurement of Finan cial Assets and Financial Liabilities. In January 2016, the Financial Accounting Standards Board (the “FASB”) issued an accounting update that changes the requirements for the recognition and measurement of certain financial assets and financial liabilities. The Firm early adopted the provision in this guidance relating to liabilities measured at fair value pursuant to a fair value option election that requires pres enting unrealized DVA in Other c omprehensive income (loss) (“OCI”), a change from the previous requirement to present DVA in net income. Realized DVA amounts will be recycled from A OCI to Trading revenues. DVA amounts from periods prior to adoption remain in Trading revenues as previously reported. A cumula tive catch up adjustment, net of noncontrolling interests and tax, of $ 312 million was recorded as of January 1, 2016 to move the cumulative DVA loss amount from Retained earnings into AOCI. Other provisions of this rule may not be early adopted and will be effective January 1, 2018 , and are not expected to have a material impact on the consolidated financial statements . Amendments to the Consolidation Analysis. In February 2015, the FASB issued an accounting update that provides a new consolidation model for certain entities, such as investment funds and limited partnerships. The adoption on January 1, 2016, increased total assets by $ 131 million, reflecting consolidations of $ 206 million net of deconsolidations of $ 75 million. The consolidations res ulted primarily from certain funds in Investment Management where the Firm acts as a general partner. Simplifying the Presentation of Debt Issuance Costs. In April 2015, the FASB issued an accounting update that requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts, instead of as an asset as was p reviously required . This guidance became effective for the Firm beginning January 1, 2016 and did not have a material impact in the consolidated financial statements. The Firm adopted the following accounting updates as of January 1, 2016 , which did not h ave an impact in the consolidated financial statements . Simplifying the Accounting for Measurement-Period Adjustments. Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity. Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures | |
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 June 30, 2016 (dollars in millions) Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 24,565 $ — $ — $ — $ 24,565 U.S. agency securities 795 22,085 20 — 22,900 Total U.S. government and agency securities 25,360 22,085 20 — 47,465 Other sovereign government obligations 20,942 6,607 2 — 27,551 Corporate and other debt: State and municipal securities — 1,943 10 — 1,953 Residential mortgage-backed securities — 586 216 — 802 Commercial mortgage-backed securities — 961 51 — 1,012 Asset-backed securities — 142 88 — 230 Corporate bonds — 11,751 276 — 12,027 Collateralized debt and loan obligations — 443 109 — 552 Loans and lending commitments(1) — 3,879 5,418 — 9,297 Other debt — 827 528 — 1,355 Total corporate and other debt — 20,532 6,696 — 27,228 Corporate equities(2) 100,018 367 572 — 100,957 Securities received as collateral 10,121 7 — — 10,128 Derivative and other contracts: Interest rate contracts 791 462,243 540 — 463,574 Credit contracts — 16,157 304 — 16,461 Foreign exchange contracts 140 76,264 101 — 76,505 Equity contracts 1,368 40,524 637 — 42,529 Commodity contracts 2,847 8,605 4,057 — 15,509 Other — 16 — — 16 Netting(3) (4,184) (505,871) (2,537) (63,844) (576,436) Total derivative and other contracts 962 97,938 3,102 (63,844) 38,158 Investments(4): Principal investments 21 19 769 — 809 Other 295 559 205 — 1,059 Total investments 316 578 974 — 1,868 Physical commodities — 193 — — 193 Total trading assets(4) 157,719 148,307 11,366 (63,844) 253,548 AFS securities 31,062 36,664 — — 67,726 Securities purchased under agreements to resell — 555 — — 555 Intangible assets — 3 — — 3 Total assets measured at fair value $ 188,781 $ 185,529 $ 11,366 $ (63,844) $ 321,832 Liabilities at Fair Value Deposits $ — $ 65 $ 30 $ — $ 95 Short-term borrowings — 511 — — 511 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 12,983 — — — 12,983 U.S. agency securities 358 111 — — 469 Total U.S. government and agency securities 13,341 111 — — 13,452 Other sovereign government obligations 15,885 2,668 — — 18,553 Corporate and other debt: State and municipal securities — 3 — — 3 Asset-backed securities — 449 — — 449 Corporate bonds — 5,578 6 — 5,584 Other debt — 15 3 — 18 Total corporate and other debt — 6,045 9 — 6,054 Corporate equities(2) 46,440 76 26 — 46,542 Obligation to return securities received as collateral 18,731 7 — — 18,738 Derivative and other contracts: Interest rate contracts 969 436,022 775 — 437,766 Credit contracts — 16,403 1,418 — 17,821 Foreign exchange contracts 82 78,441 102 — 78,625 Equity contracts 1,262 43,177 2,110 — 46,549 Commodity contracts 2,368 7,652 2,759 — 12,779 Other — 91 11 — 102 Netting(3) (4,184) (505,871) (2,537) (43,727) (556,319) Total derivative and other contracts 497 75,915 4,638 (43,727) 37,323 Total trading liabilities 94,894 84,822 4,673 (43,727) 140,662 Securities sold under agreements to repurchase — 549 150 — 699 Other secured financings — 2,480 441 — 2,921 Long-term borrowings 44 35,831 1,929 — 37,804 Total liabilities measured at fair value $ 94,938 $ 124,258 $ 7,223 $ (43,727) $ 182,692 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 Securities received as collateral 11,221 3 1 — 11,225 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) 150,128 128,086 13,010 (55,562) 235,662 AFS securities 34,351 32,408 — — 66,759 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 Obligation to return securities received as collateral 19,312 3 1 — 19,316 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 91,421 71,734 5,773 (40,473) 128,455 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 _____________ AFS—Available for sale (1) A t June 30, 2016 , Loans and lending commitments h eld at fair value consisted of $ 7,114 million of corporate loans, $ 1,721 million of res idential real estate loans and $ 462 million of wholesale real estate loans. 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 whol esale real estate loans. (2) For trading purposes, the Firm holds or sells 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 included in the column titled “Counterparty and Cash Collateral Netting.” For contracts with the same counterparty, counterparty netting among positions classified within the same level is included within that 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 net asset value (“NAV”) per share, which a re not classified in the fair value hierarchy. At June 30, 2016 and December 31, 2015, the fair value of these investments was $ 3,246 million and $ 3,843 million, respectively. For additional disclosure about such investments, see “Fair Value of Investments Measured at Net Asset Value” herein. |
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 March 31, 2016 Total Realized and Unrealized Gains (Losses) Purchases (1) Sales Issuances Settlements Net Transfers Ending Balance at June 30, 2016 Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at June 30, 2016 (dollars in millions) Assets at Fair Value Trading assets: U.S. agency securities $ 8 $ — $ — $ (18) $ — $ — $ 30 $ 20 $ — Other sovereign government obligations 8 — — (3) — — (3) 2 — Corporate and other debt: State and municipal securities 5 1 4 — — — — 10 2 Residential mortgage-backed securities 292 3 — (82) — — 3 216 (5) Commercial mortgage-backed securities 59 (3) 1 (4) — — (2) 51 (5) Asset-backed securities 4 (4) 6 (1) — — 83 88 (4) Corporate bonds 224 17 116 (35) — — (46) 276 17 Collateralized debt and loan obligations 348 18 3 (178) — — (82) 109 18 Loans and lending commitments 6,185 (46) 360 (484) — (596) (1) 5,418 (55) Other debt 527 4 13 (19) — — 3 528 2 Total corporate and other debt 7,644 (10) 503 (803) — (596) (42) 6,696 (30) Corporate equities 430 (63) 273 (82) — — 14 572 (63) Net derivative and other contracts(2): Interest rate contracts 169 (159) 2 — (7) 42 (282) (235) (157) Credit contracts (723) 65 1 — — 93 (550) (1,114) 53 Foreign exchange contracts 126 (58) — — — (94) 25 (1) (47) Equity contracts (1,832) 168 50 — (140) 263 18 (1,473) (106) Commodity contracts 1,200 211 5 — (4) (88) (26) 1,298 130 Other — — — — — — (11) (11) — Total net derivative and other contracts (1,060) 227 58 — (151) 216 (826) (1,536) (127) Investments: Principal investments 743 4 33 (11) — — — 769 6 Other 179 1 25 — — — — 205 1 Total investments 922 5 58 (11) — — — 974 7 Intangible assets 4 — — — — — (4) — — Liabilities at Fair Value Deposits $ 23 $ (1) $ — $ — $ 8 $ — $ (2) $ 30 $ (1) Trading liabilities: Corporate and other debt: Corporate bonds 6 (1) (5) 29 — — (25) 6 (1) Lending commitments 1 1 — — — — — — — Other debt 4 — (1) — — — — 3 — Total corporate and other debt 11 — (6) 29 — — (25) 9 (1) Corporate equities 31 (28) (33) 5 — — (5) 26 — Obligation to return securities received as collateral 1 — (1) — — — — — — Securities sold under agreements to repurchase 151 1 — — — — — 150 1 Other secured financings 454 (14) — — 23 (22) (28) 441 (14) Long-term borrowings 1,798 21 — — 164 (131) 119 1,929 26 Beginning Balance at December 31, 2015 Total Realized and Unrealized Gains (Losses) Purchases (1) Sales Issuances Settlements Net Transfers Ending Balance at June 30, 2016 Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at June 30, 2016 (dollars in millions) Assets at Fair Value Trading assets: U.S. agency securities $ — $ 1 $ — $ (19) $ — $ — $ 38 $ 20 $ 1 Other sovereign government obligations 4 — — (5) — — 3 2 1 Corporate and other debt: State and municipal securities 19 1 4 (15) — — 1 10 1 Residential mortgage-backed securities 341 (19) 19 (133) — — 8 216 (14) Commercial mortgage-backed securities 72 (10) — (19) — — 8 51 (11) Asset-backed securities 25 (7) 7 (18) — — 81 88 (8) Corporate bonds 267 62 113 (128) — — (38) 276 61 Collateralized debt and loan obligations 430 5 22 (224) — — (124) 109 17 Loans and lending commitments 5,936 (111) 970 (720) — (672) 15 5,418 (121) Other debt 448 (2) 133 (63) — — 12 528 (2) Total corporate and other debt 7,538 (81) 1,268 (1,320) — (672) (37) 6,696 (77) Corporate equities 433 (45) 296 (119) — — 7 572 (64) Securities received as collateral 1 — — (1) — — — — — Net derivative and other contracts(2): Interest rate contracts 260 305 3 — (21) (60) (722) (235) 205 Credit contracts (844) (343) 1 — — 153 (81) (1,114) (360) Foreign exchange contracts 141 (109) — — — (201) 168 (1) (82) Equity contracts (2,031) (321) 71 — (184) 1,121 (129) (1,473) (434) Commodity contracts 1,050 297 7 — (4) (176) 124 1,298 210 Other — — — — — — (11) (11) — Total net derivative and other contracts (1,424) (171) 82 — (209) 837 (651) (1,536) (461) Investments: Principal investments 486 (39) 403 (40) — (41) — 769 (37) Other 221 (17) 1 — — — — 205 (16) Total investments 707 (56) 404 (40) — (41) — 974 (53) Intangible assets 5 — — — — — (5) — — Liabilities at Fair Value Deposits $ 19 $ (2) $ — $ — $ 13 $ — $ (4) $ 30 $ (2) Short-term borrowings 1 — — — — (1) — — — Trading liabilities: Corporate and other debt: Corporate bonds — (5) (7) 10 — — (2) 6 (5) Other debt 4 2 (3) 4 — — — 3 2 Total corporate and other debt 4 (3) (10) 14 — — (2) 9 (3) Corporate equities 17 (3) (22) 18 — — 10 26 (3) Obligation to return securities received as collateral 1 — (1) — — — — — — Securities sold under agreements to repurchase 151 1 — — — — — 150 1 Other secured financings 461 (32) — — 69 (43) (78) 441 (32) Long-term borrowings 1,987 (12) — — 276 (167) (179) 1,929 (6) Beginning Balance at March 31, 2015 Total Realized and Unrealized Gains (Losses) Purchases (1) Sales Issuances Settlements Net Transfers Ending Balance at June 30, 2015 Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at June 30, 2015 (dollars in millions) Assets at Fair Value Trading assets: U.S. agency securities $ — $ — $ — $ (3) $ — $ — $ 6 $ 3 $ — Other sovereign government obligations 11 — 5 (1) — — (3) 12 — Corporate and other debt: State and municipal securities — 1 4 (9) — — 11 7 1 Residential mortgage-backed securities 296 2 138 (32) — — (26) 378 2 Commercial mortgage-backed securities 180 (4) 5 (9) — — (88) 84 (5) Asset-backed securities 67 5 11 (64) — — — 19 1 Corporate bonds 424 (4) 228 (150) — (2) (17) 479 (16) Collateralized debt and loan obligations 822 68 300 (439) — (78) (13) 660 (10) Loans and lending commitments 4,789 31 1,615 (351) — (491) (81) 5,512 26 Other debt 486 (1) 130 (51) — — — 564 (1) Total corporate and other debt 7,064 98 2,431 (1,105) — (571) (214) 7,703 (2) Corporate equities 230 38 266 (92) — — 44 486 26 Securities received as collateral 33 — — (30) — — — 3 — Net derivative and other contracts(2): Interest rate contracts (496) 95 4 — (13) 14 160 (236) 135 Credit contracts (984) (24) 4 — (24) 23 16 (989) (29) Foreign exchange contracts 297 57 — — (1) 43 50 446 82 Equity contracts (2,472) (23) 39 — (54) 206 202 (2,102) (161) Commodity contracts 1,345 4 2 — (112) (34) — 1,205 (27) Total net derivative and other contracts (2,310) 109 49 — (204) 252 428 (1,676) — Investments: Principal investments 829 (21) 5 (12) — (205) (15) 581 (21) Other 391 (4) — — — — (87) 300 — Total investments 1,220 (25) 5 (12) — (205) (102) 881 (21) Intangible assets 5 1 — — — — — 6 1 Liabilities at Fair Value Trading liabilities: Corporate and other debt: Corporate bonds $ 23 $ — $ (21) $ 15 $ — $ — $ (2) $ 15 $ — Other debt 23 — — 10 — (29) — 4 — Total corporate and other debt 46 — (21) 25 — (29) (2) 19 — Corporate equities 50 240 (49) 2 — — 349 112 240 Obligation to return securities received as collateral 33 — (30) — — — — 3 — Securities sold under agreements to repurchase 154 — — — — — — 154 — Other secured financings 133 2 — — 37 — — 168 2 Long-term borrowings 1,738 51 — — 549 (88) 73 2,221 51 Beginning Balance at December 31, 2014 Total Realized and Unrealized Gains (Losses) Purchases (1) Sales Issuances Settlements Net Transfers Ending Balance at June 30, 2015 Unrealized Gains (Losses) for Level 3 Assets/ Liabilities Outstanding at June 30, 2015 (dollars in millions) Assets at Fair Value Trading assets: U.S. agency securities $ — $ — $ 3 $ — $ — $ — $ — $ 3 $ — Other sovereign government obligations 41 1 6 (32) — — (4) 12 1 Corporate and other debt: State and municipal securities — 1 4 — — — 2 7 1 Residential mortgage-backed securities 175 21 163 (51) — — 70 378 12 Commercial mortgage-backed securities 96 (6) 16 (22) — — — 84 (9) Asset-backed securities 76 (4) 11 (29) — — (35) 19 2 Corporate bonds 386 10 213 (126) — (1) (3) 479 9 Collateralized debt and loan obligations 1,152 145 404 (682) — (331) (28) 660 (6) Loans and lending commitments 5,874 35 2,082 (209) — (2,078) (192) 5,512 30 Other debt 285 (8) 12 — — (1) 276 564 6 Total corporate and other debt 8,044 194 2,905 (1,119) — (2,411) 90 7,703 45 Corporate equities 272 64 260 (147) — — 37 486 49 Securities received as collateral — — 3 — — — — 3 — Net derivative and other contracts(2): Interest rate contracts (173) 188 9 — (20) 124 (364) (236) 197 Credit contracts (743) (276) 17 — (54) 31 36 (989) (284) Foreign exchange contracts 151 121 — — (1) 144 31 446 120 Equity contracts (2,165) (73) 69 — (225) 156 136 (2,102) (160) Commodity contracts 1,146 299 3 — (112) (72) (59) 1,205 234 Total net derivative and other contracts (1,784) 259 98 — (412) 383 (220) (1,676) 107 Investments: Principal investments 835 (4) 15 (46) — (205) (14) 581 (26) Other 323 (16) 2 (6) — — (3) 300 (12) Total investments 1,158 (20) 17 (52) — (205) (17) 881 (38) Intangible assets 6 1 — — — (1) — 6 1 Liabilities at Fair Value Trading liabilities: Corporate and other debt: Corporate bonds $ 78 $ (2) $ (12) $ 14 $ — $ — $ (67) $ 15 $ (2) Lending commitments 5 5 — — — — — — 5 Other debt 38 — — 6 — (39) (1) 4 — Total corporate and other debt 121 3 (12) 20 — (39) (68) 19 3 Corporate equities 45 19 (75) 25 — — 136 112 20 Obligation to return securities received as collateral — — — 3 — — — 3 — Securities sold under agreements to repurchase 153 (1) — — — — — 154 (1) Other secured financings 149 (6) — — 37 (24) — 168 2 Long-term borrowings 1,934 65 — — 612 (300) 40 2,221 59 ___________ (1) Loan originations and consolidations of VIEs are included in purchases. (2) Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts. For further information on derivative instruments and hedging activities, see Note 4 . |
Quantitative Information about and Sensitivity of Significant Unobservable Inputs used in Recurring Level 3 Fair Value Measurements | Recurring Level 3 Fair Value Measurements Valuation Techniques and Sensitivity of Unobservable Inputs Balance at June 30, 2016 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 $ 216 Comparable pricing: Comparable bond price / (A) 0 to 79 points 20 points Commercial mortgage-backed securities 51 Comparable pricing: Comparable bond price / (A) 0 to 7 points 1 point Asset-backed securities 88 Comparable pricing: Comparable bond price / (A) 45 to 55 points 46 points Corporate bonds 276 Comparable pricing(3): Comparable bond price / (A) 3 to 135 points 91 points Comparable pricing: EBITDA multiple / (A) 5 to 10 times 7 times Collateralized debt and loan obligations 109 Comparable pricing(3): Comparable bond price / (A) 20 to 95 points 57 points Correlation model: Credit correlation / (B) 29% to 61% 42% Loans and lending commitments 5,418 Corporate loan model: Credit spread / (C) 482 to 898 bps 596 bps Margin loan model(3): Credit spread / (C)(D) 31 to 102 bps 86 bps Volatility skew / (C)(D) 20% to 46% 32% Discount rate / (C)(D) 1% to 8% 3% Expected recovery: Asset coverage / (A) 47% to 99% 90% Option model: Volatility skew / (C) -1% -1% Comparable pricing: Comparable loan price / (A) 43 to 100 points 87 points Discounted cash flow: Implied weighted average cost of capital / (C)(D) 5% to 6% 6% Capitalization rate / (C)(D) 4% to 10% 4% Other debt 528 Comparable pricing: Comparable loan price / (A) 3 to 84 points 66 points Comparable pricing: Comparable bond price / (A) 7 points 7 points Option model: At the money volatility / (C) 16% to 53% 53% Margin loan model(3): Discount rate / (C) 1% to 2% 2% Discounted cash flow: Discount rate / (C) 10% to 13% 12% Corporate equities 572 Comparable pricing: Comparable equity price / (A) 100% 100% Net derivative and other contracts(4): Interest rate contracts (235) Option model(3): Interest rate - Foreign exchange correlation / (A)(D) 25% to 55% 42% / 42% (5) Interest rate volatility skew / (A)(D) 34% to 143% 78% / 77% (5) Interest rate quanto correlation / (A)(D) -8% to 35% 2% / -7% (5) Interest rate curve correlation / (C)(D) 19% to 95% 71% / 76% (5) Interest rate curve / (C)(D) 0% to 1% 1% / 1% (5) Inflation volatility / (A)(D) 0% to 1% 1% / 1% (5) Interest rate - Inflation correlation / (A)(D) -24% to -44% -34% / -33% (5) Foreign exchange volatility skew / (C)(D) 0% to 11% 4% / 6% (5) Comparable pricing: Comparable bond price / (C) 95 to 100 points 96 points Credit contracts (1,114) Comparable pricing: Cash synthetic basis / (C)(D) 5 to 12 points 10 points Comparable bond price / (C)(D) 0 to 85 points 26 points Correlation model(3): Credit correlation / (B) 29% to 92% 49% Foreign exchange contracts(6) (1) Option model: Interest rate - Foreign exchange correlation / (A)(D) 25% to 55% 42% / 42% (5) Interest rate volatility skew / (A)(D) 34% to 143% 78% / 77% (5) Interest rate curve / (A)(D) 0% 0% / 0% (5) Interest rate curve correlation / (C)(D) 19% to 94% 73% / 81% (5) Equity contracts(6) (1,473) Option model: At the money volatility / (A)(D) 6% to 81% 35% Volatility skew / (A)(D) -4% to 0% -1% Equity - Equity correlation / (A)(D) 40% to 98% 79% Equity - Foreign exchange correlation / (C)(D) -70% to -31% -42% Equity - Interest rate correlation / (C)(D) -7% to 50% 19% / 12% (5) Commodity contracts 1,298 Option model: Forward power price / (C)(D) $2 to $95 per $34 per megawatt hour megawatt hour Commodity volatility / (C)(D) 6% to 90% 18% Cross commodity correlation / (C)(D) 5% to 99% 93% Investments: Principal investments 769 Discounted cash flow: Implied weighted average cost of capital / (C)(D) 13% to 16% 15% Exit multiple / (A)(D) 8 to 23 times 9 times Market approach(3): EBITDA multiple / (A)(D) 6 to 25 times 12 times Forward capacity price / (A)(D) $4 to $9 $7 Comparable pricing: Comparable equity price / (A) 43% to 100% 82% Other 205 Discounted cash flow: Implied weighted average cost of capital / (C)(D) 9% 9% Exit multiple / (A)(D) 13 times 13 times Market approach: EBITDA multiple / (A)(D) 6 to 13 times 12 times Comparable pricing(3): Comparable equity price / (A) 100% 100% Liabilities at Fair Value Securities sold under agreements to repurchase 150 Discounted cash flow: Funding spread / (A) 117 to 123 bps 120 bps Other secured financings 441 Option model: Volatility skew / (C) -1% -1% Discounted cash flow(3): Discount rate / (C) 4% 4% Discounted cash flow: Funding spread / (A) 101 to 126 bps 114 bps Long-term borrowings 1,929 Option model(3): At the money volatility / (C)(D) 6% to 48% 29% Volatility skew / (C)(D) -2% to 0% -1% Equity - Equity correlation / (C)(D) 50% to 98% 75% Equity - Foreign exchange correlation / (C)(D) -50% to 11% -25% Option model: Interest rate - credit spread correlation / (A)(D) -52% to 3% -24% / -23% (5) Interest rate - Foreign exchange correlation / (A)(D) 53% 53% / 53% (5) Interest rate - equity correlation / (A)(D) 7% to 44% 26% / 26% (5) Interest rate curve correlation / (C)(D) 40% to 87% 73% / 78% (5) Correlation model: Credit correlation / (B) 33% to 61% 44% 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, 2015 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% ________________ 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, 79 points would be 79 % of par. A basis point equals 1/100th of 1%; for example, 898 bps would equal 8.98 %. (2) Amounts represent weighted averages except where simple aver ages 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, principal investm ents, 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 adjustments (“CV A”) and funding valuation adjustments (“FVA”) are included in the balance but excluded from the Valuation Technique(s) and Significant Unobservable Input(s) in the previous table. CVA is a Level 3 input when the underlying counterparty credit curve is unob servable. 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, certain equity contracts and certain long-term borrowings 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 th an a single point weighted average. (6) Includes derivative contracts with multiple risks ( i.e., hybrid products). 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 redistributi on of risk within the capital structure such that junior tranches become less (more) risky and senior tranches become more (less) risky. (C) Significant increase (decrease) in the unobservable input in isolation would result in a significantly lower (high er) 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 June 30, 2016 At December 31, 2015 Fair Value Commitment Fair Value Commitment (dollars in millions) Private equity funds $ 1,698 $ 395 $ 1,917 $ 538 Real estate funds 1,228 111 1,337 128 Hedge funds 320 4 589 4 Total $ 3,246 $ 510 $ 3,843 $ 670 Fair Value of Non-Redeemable Funds by Projected Distribution At June 30, 2016 Private Equity Real Estate Funds Funds (dollars in millions) Less than 5 years $ 128 $ 94 5-10 years 911 669 Over 10 years 659 465 Total $ 1,698 $ 1,228 Redemption Frequency as Percentage of Hedge Fund Fair Value At June 30, 2016 Hedge Funds(1) Quarterly 55% Every Six Months 20% Greater than Six Months 19% _________ (1) The redemption notice period was primarily three months or greater. |
Net Gains (Losses) Due to Changes in Fair Value for Items Measured at Fair Value Pursuant to the Fair Value Option Election | Interest Gains (Losses) Trading Income Included in Revenues (Expense) Net Revenues (dollars in millions) Three Months Ended June 30, 2016 Securities purchased under agreements to resell $ (1) $ 2 $ 1 Deposits(1) (1) (1) (2) Short-term borrowings(1) (9) ─ (9) Securities sold under agreements to repurchase(1) (3) (3) (6) Long-term borrowings(1) (1,289) (130) (1,419) Six Months Ended June 30, 2016 Securities purchased under agreements to resell $ (1) $ 4 $ 3 Deposits(1) (3) (1) (4) Short-term borrowings(1) 36 ─ 36 Securities sold under agreements to repurchase(1) (12) (5) (17) Long-term borrowings(1) (2,254) (269) (2,523) Three Months Ended June 30, 2015 Securities purchased under agreements to resell $ (2) $ 5 $ 3 Short-term borrowings(2) (2) ─ (2) Securities sold under agreements to repurchase(2) 6 (2) 4 Long-term borrowings(2) 152 (138) 14 Six Months Ended June 30, 2015 Securities purchased under agreements to resell $ (3) $ 5 $ 2 Short-term borrowings(2) (42) ─ (42) Securities sold under agreements to repurchase(2) 4 (3) 1 Long-term borrowings(2) 1,089 (270) 819 G ains (losses) are mainly attributable to changes in foreign currency rates or interest rates or movements in the reference price or index for short-term and long-term borrowings before the impact of related hedges. In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , unrealized DVA gains of $ 225 million and $ 548 million are rec orded within OCI in the consolidated statement s of comprehensive income and not included in this table for the current quarter and current year period, respectively . See Notes 2 and 14 for further information. Gains (losses) recorded in Trading revenues for the prior year quarter and prior year period are attributable to DVA and the respective remainder is attributable to changes in foreign currency rates or interest rates or movements in the reference price or index for structured notes before the impact of related hedges. |
Breakdown of Outstanding Short-term and Long-term Borrowings | Short-Term and Long-Term Borrowings Measured at Fair Value on a Recurring Basis At At June 30, December 31, 2016 2015 Business Unit Responsible (dollars in millions) for Risk Management Equity $ 19,696 $ 17,789 Interest rates 16,728 14,255 Credit and foreign exchange 1,570 2,266 Commodities 321 383 Total $ 38,315 $ 34,693 |
Gains (Losses) Due to Changes in Instrument Specific Credit Risk | Gains (Losses) due to Changes in Instrument-Specific Credit Risk Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Trading Revenues OCI Trading Revenues OCI Trading Revenues OCI Trading Revenues OCI (dollars in millions) Short-term and long-term borrowings(1) $ ─ $ 226 $ 182 $ ─ $ 41 $ 545 $ 307 $ ─ Securities sold under agreements to repurchase(1) ─ (1) ─ ─ ─ 3 ─ ─ Loans and other debt(2) (14) ─ (6) ─ (114) ─ 71 ─ Lending commitments(3) 2 ─ (1) ─ 3 ─ 8 ─ _____________ (1) In accordance with the early adoption of a provision of the accounting update, Recognition and Measurement of Financial Assets and Financial Liabilities , for the current quarter and current year period DVA gains (losses) are recorded in OCI when unrealized and in T rading revenues when realized. In the prior year quarter and prior year period , the realized and unrealized DVA gains (losses) are recorded in Trading revenues. Th e cumulative impact of changes in th e Firm’s DVA and the pre-tax amount recognized in AOCI is a gain of $87 million at June 30, 2016 . See Notes 2 and 14 for further information . (2) Loans and other debt instrument-specific credit gains (losses) were determined by excluding t he non-credit components of gains and losses, such as those due to changes in interest rates. (3) Gains (losses) on lending 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 At June 30, December 31, 2016 2015 (dollars in millions) Loans and other debt(1) $ 15,046 $ 14,095 Loans 90 or more days past due and/or on nonaccrual status(1) 12,867 11,651 Short-term and long-term borrowings(2) 311 508 _____________ (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) Short-term and long-term borrowings do not include structured notes where the repayment of the initial principal amount fluctuates based on changes in the reference price or index |
Fair Value of Loans in Nonaccrual Status | Fair Value of Loans in Nonaccrual Status At At June 30, December 31, 2016 2015 (dollars in millions) Aggregate fair value of loans in nonaccrual status(1) $ 1,717 $ 1,853 _____________ (1) Includes all loans 90 or more days past due in the amount of $ 514 million and $ 885 million at June 30, 2016 and December 31, 2015 , respectively. |
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 by Level Total Total Gains (Losses) Gains (Losses) Carrying for the for Value at Three Months Ended Six Months Ended June 30, June 30, June 30, 2016(1) Level 1 Level 2 Level 3 2016(2) 2016(2) (dollars in millions) Assets: Loans(3) $ 6,700 $ ─ $ 4,276 $ 2,424 $ (34) $ (131) Other assets—Other investments(4) 82 ─ ─ 82 (38) (40) Other assets—Premises, equipment and software costs(5) ─ ─ ─ ─ (22) (27) Total assets $ 6,782 $ ─ $ 4,276 $ 2,506 $ (94) $ (198) Liabilities: Other liabilities and accrued expenses(3) $ 402 $ ─ $ 331 $ 71 $ 13 $ 24 Total liabilities $ 402 $ ─ $ 331 $ 71 $ 13 $ 24 Fair Value by Level Total Total Gains (Losses) Gains (Losses) Carrying for the for the Value at Three Months Ended Six Months Ended June 30, June 30, June 30, 2015(1) Level 1 Level 2 Level 3 2015(2) 2015(2) (dollars in millions) Assets: Loans(3) $ 3,244 $ ─ $ 2,458 $ 786 $ 47 $ 8 Other assets—Other investments(4) ─ ─ ─ ─ ─ (2) Other assets—Premises, equipment and software costs(5) software costs(5) ─ ─ ─ ─ (2) (22) Total assets $ 3,244 $ ─ $ 2,458 $ 786 $ 45 $ (16) Liabilities: Other liabilities and accrued expenses(3) $ 283 $ ─ $ 244 $ 39 $ (45) (48) Total liabilities $ 283 $ ─ $ 244 $ 39 $ (45) (48) ___________________ (1) Carrying values relate only to those assets that had fair value adjustments during the current quarter and prior year quarter. (2) C hanges in the fair value of Loans and losses related to Other assets—Other investments are recorded within Other revenues in the consolidated statement s of income. Losses related to Other assets—Premises, equipment and software costs are recorded within Other expenses if not held for sale and within O ther revenues if held for sale. Changes in the fair value of lending commitments reported in Other liabilities and accrued expenses that are designated as held for sale are recorded within Other revenues, whereas, changes in the fair value related to held for investment l ending commitments are r ecorded within Other expenses. (3) Non- recurring changes in the fair value of loans and lending commitments held for investment were calculated using the value of the underlying collateral. Loans and lending commitments held for sa le were calculated using recently executed transactions; market price quotations; valuation models that incorporate market observable inputs where possible, such as comparable loan or debt prices and credit default swap spread levels adjusted for any basis difference between cash and derivative instruments; or default recovery analysis where such transactions and quotations are unobservable. (4) Losses related to Other assets— Other investments were determined primarily using discounted cash flow models and methodologies that incorporate multiples of certain comparable companies. (5) Losses related to Other assets— Premises, equipment and software costs were determined primarily using a default recovery analysis. |
Financial Instruments Not Measured at Fair Value | The following tables 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 the Firm’s deposit customers. At June 30, 2016 Fair Value by Level Carrying Value Fair Value Level 1 Level 2 Level 3 (dollars in millions) Financial Assets: Cash and due from banks $ 27,597 $ 27,597 $ 27,597 $ — $ — Interest bearing deposits with banks 28,536 28,536 28,536 — — Investment securities—HTM securities 12,418 12,567 3,758 8,809 — Securities purchased under agreements to resell 97,034 97,042 — 95,140 1,902 Securities borrowed 131,281 131,282 — 131,156 126 Customer and other receivables(1) 48,910 48,815 — 44,033 4,782 Loans(2) 93,165 94,151 — 25,289 68,862 Other assets—Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 32,771 32,771 32,771 — — Financial Liabilities: Deposits $ 152,598 $ 152,788 $ — $ 152,788 $ — Short-term borrowings 369 369 — 369 — Securities sold under agreements to repurchase 49,629 49,692 — 48,033 1,659 Securities loaned 17,241 17,262 — 17,262 — Other secured financings 6,980 6,991 — 5,596 1,395 Customer and other payables(1) 197,978 197,978 — 197,978 — Long-term borrowings 125,688 127,189 — 127,189 — At December 31, 2015 Fair Value by Level 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 — — 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 Other assets—Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 31,469 31,469 31,469 — — 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 — ___________________ HTM—Held to maturity (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 He30
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value, Notional and Offsetting of Derivative Instruments Designated and Not Designated as Accounting Hedges by Type of Derivative Contract | Fair Value, Notional and Offsetting of Derivative Assets and Liabilities Derivative Assets at June 30, 2016 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 $ 3,325 $ 3,798 $ — $ 7,123 $ 34,003 $ 58,245 $ — $ 92,248 Foreign exchange contracts 88 — — 88 2,795 59 — 2,854 Total derivatives designated as accounting hedges 3,413 3,798 — 7,211 36,798 58,304 — 95,102 Derivatives not designated as accounting hedges(1): Interest rate contracts 287,757 168,366 328 456,451 3,940,102 6,615,199 1,636,768 12,192,069 Credit contracts 13,734 2,727 — 16,461 434,478 133,037 — 567,515 Foreign exchange contracts 75,891 386 140 76,417 1,851,368 16,653 21,279 1,889,300 Equity contracts 22,043 — 20,486 42,529 341,039 — 259,453 600,492 Commodity contracts 11,785 — 3,724 15,509 72,700 — 83,156 155,856 Other 16 — — 16 1,135 — — 1,135 Total derivatives not designated as accounting hedges 411,226 171,479 24,678 607,383 6,640,822 6,764,889 2,000,656 15,406,367 Total gross derivatives(2) $ 414,639 $ 175,277 $ 24,678 $ 614,594 $ 6,677,620 $ 6,823,193 $ 2,000,656 $ 15,501,469 Amounts offset: Counterparty netting (321,553) (173,222) (21,214) (515,989) Cash collateral netting (60,352) (95) — (60,447) Total derivative assets at fair value included in Trading assets $ 32,734 $ 1,960 $ 3,464 $ 38,158 Amounts not offset(3): Financial instruments collateral (12,011) — — (12,011) Other cash collateral (23) — — (23) Net exposure $ 20,700 $ 1,960 $ 3,464 $ 26,124 Derivative Liabilities at June 30, 2016 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 $ — $ — $ — $ — $ — $ 32 $ — $ 32 Foreign exchange contracts $ 492 $ 23 $ — $ 515 $ 8,348 $ 689 $ — $ 9,037 Total derivatives designated as . accounting hedges 492 23 — 515 8,348 721 — 9,069 Derivatives not designated as accounting hedges(1): Interest rate contracts 265,270 172,084 412 437,766 3,654,941 6,558,339 760,822 10,974,102 Credit contracts 14,888 2,933 — 17,821 489,656 115,979 — 605,635 Foreign exchange contracts 77,614 414 82 78,110 1,837,572 15,817 10,511 1,863,900 Equity contracts 25,633 — 20,916 46,549 342,625 — 261,986 604,611 Commodity contracts 9,390 — 3,389 12,779 68,095 — 64,896 132,991 Other 102 — — 102 4,817 — — 4,817 Total derivatives not designated as accounting hedges 392,897 175,431 24,799 593,127 6,397,706 6,690,135 1,098,215 14,186,056 Total gross derivatives(2) $ 393,389 $ 175,454 $ 24,799 $ 593,642 $ 6,406,054 $ 6,690,856 $ 1,098,215 $ 14,195,125 Amounts offset: Counterparty netting (321,553) (173,222) (21,214) (515,989) Cash collateral netting (38,378) (1,952) — (40,330) Total derivative liabilities at fair value included in Trading liabilities $ 33,458 $ 280 $ 3,585 $ 37,323 Amounts not offset(3): Financial instruments collateral (11,509) — (514) (12,023) Other cash collateral (10) (41) — (51) Net exposure $ 21,939 $ 239 $ 3,071 $ 25,249 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(4): 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 gross derivatives(2) $ 340,573 $ 106,623 $ 24,382 $ 471,578 $ 7,273,921 $ 5,936,757 $ 1,538,532 $ 14,749,210 Amounts offset: Counterparty netting (265,707) (104,294) (21,592) (391,593) Cash collateral netting (50,335) (1,037) — (51,372) Total derivative assets at fair value included in Trading assets $ 24,531 $ 1,292 $ 2,790 $ 28,613 Amounts not offset(3): Financial instruments collateral (9,190) — — (9,190) Other cash collateral (9) — — (9) Net exposure $ 15,332 $ 1,292 $ 2,790 $ 19,414 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(4): 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 gross derivatives(2) $ 324,671 $ 108,063 $ 24,616 $ 457,350 $ 6,864,262 $ 5,837,356 $ 1,372,605 $ 14,074,223 Amounts offset: Counterparty netting (265,707) (104,294) (21,592) (391,593) Cash collateral netting (33,332) (2,951) — (36,283) Total derivative liabilities at fair value included in Trading liabilities $ 25,632 $ 818 $ 3,024 $ 29,474 Amounts not offset(3): Financial instruments collateral (5,384) — (405) (5,789) Other cash collateral (5) — — (5) Net exposure $ 20,243 $ 818 $ 2,619 $ 23,680 _____________ OTC—Over-the-counter (1) Notional amounts include gross notionals related to open long and short futures contracts of $ 1,300.0 billion and $ 372.8 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 1,631 million and $ 153 million is included in Customer and other receivables and Customer and other payables, respecti vely, in the consolidated balance sheets. (2) Amounts include transactions which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Firm has not determined the agreements to be legally en forceable as follows: $ 4.8 billion of derivative assets and $ 6.3 billion of derivative liabilities at June 30, 2016 , and $ 4.2 billion of derivative assets and $ 5.2 billion of derivative liabilities at December 31, 2015 . (3) Amounts relate to master netting agreements and collateral agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsettin g accounting guidance. (4) 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 this table) of $ 1, 145 million and $ 437 million is included in Customer and other receivables and Customer and other payables, respectively, in the consolidated balance sheets. |
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 Three Months Ended June 30, Six Months Ended June 30, Product Type 2016 2015 2016 2015 (dollars in millions) Derivatives $ 969 $ (1,899) $ 3,119 $ (1,141) Borrowings (993) 1,861 (3,282) 1,018 Total $ (24) $ (38) $ (163) $ (123) Gains (Losses) on Derivatives Designated as Net Investment Hedges Gains (Losses) Recognized in OCI (effective portion) Three Months Ended June 30, Six Months Ended June 30, Product Type 2016 2015 2016 2015 (dollars in millions) Foreign exchange contracts(1) $ (112) $ (81) $ (336) $ 181 ____________ (1) Losses of $ 19 million and $ 39 million related to the forward points on the hedging instruments were excluded from hedge effectiveness testing and recognized in Interest income during the current quarter and current year period , respectively. Losses of $ 36 million and $ 80 million related to the forward points on the hedging instruments were excluded from hedge effectiveness testing and recognized in Interest income during the prior year quarter and prior year period , respectively. Gains (Losses) Recognized in Trading Revenues Three Months Ended Six Months Ended June 30, June 30, Product Type 2016 2015 2016 2015 (dollars in millions) Interest rate contracts $ 320 $ 355 $ 626 $ 925 Foreign exchange contracts 362 170 599 515 Equity security and index contracts(1) 1,615 1,746 2,945 3,341 Commodity and other contracts(2) 20 140 (124) 816 Credit contracts 429 380 765 719 Subtotal $ 2,746 $ 2,791 $ 4,811 $ 6,316 Debt valuation adjustments(3) — 182 — 307 Total trading revenue $ 2,746 $ 2,973 $ 4,811 $ 6,623 ____________ (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. (3) In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , unrealized DVA gains (losses) in the current quarter and current year period are recorded within OCI in the consolidated statement s of comprehensive income. In the prior year quarter and prior year period , the DVA gains (losses) were recorded within Trading revenues in the consolidated statement s of income. See Notes 2 and 14 for further informatio n. |
Summary by Counterparty Credit Rating and Remaining Contract Maturity of the Fair Value of OTC Derivatives in a Gain Position | OTC Derivative Products—Trading Assets Counterparty Credit Rating and Remaining Maturity of OTC Derivative Assets Fair Value at June 30, 2016(1) Contractual 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 $ 137 $ 396 $ 1,312 $ 4,360 $ (4,953) $ 1,252 $ 1,175 AA 3,156 1,502 1,814 12,226 (12,717) 5,981 3,771 A 11,078 7,607 5,336 28,058 (38,694) 13,385 7,784 BBB 5,794 4,489 2,622 15,861 (19,993) 8,773 6,808 Non-investment grade 3,923 2,505 996 5,370 (7,514) 5,280 3,122 Total $ 24,088 $ 16,499 $ 12,080 $ 65,875 $ (83,871) $ 34,671 $ 22,660 Fair Value at December 31, 2015(1) Contractual 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 _____________ (1) Fair values shown represent the Firm ’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 At June 30, 2016 (dollars in millions) Net derivative liabilities $ 28,999 Collateral posted 24,217 Incremental Collateral or Termination Payments upon Potential Future Ratings Downgrade At June 30, 2016(1) (dollars in millions) One-notch downgrade $ 1,075 Two-notch downgrade 1,233 ________ (1) Amounts include $ 1,481 million related to bilateral arrangements between the Firm 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 used by the Firm to manage the risk of counterparty downgrade s . |
Disclosure of Credit Derivatives | Notional and Fair Value of Protection Sold and Protection Purchased through Credit Default Swaps At June 30, 2016 Protection Sold Protection Purchased Notional Fair Value (Asset)/Liability Notional Fair Value (Asset)/Liability (dollars in millions) Single name credit default swaps $ 347,624 $ 463 $ 338,727 $ (453) Index and basket credit default swaps 176,009 726 143,734 (771) Tranched index and basket credit default swaps 43,657 (793) 123,399 2,188 Total $ 567,290 $ 396 $ 605,860 $ 964 At December 31, 2015 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) Credit Ratings of Reference Obligation and Maturities of Credit Protection Sold At June 30, 2016 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 $ 92,734 $ 94,348 $ 48,928 $ 11,097 $ 247,107 $ (1,079) Non-investment grade 42,370 38,348 18,381 1,418 100,517 1,542 Total $ 135,104 $ 132,696 $ 67,309 $ 12,515 $ 347,624 $ 463 Index and basket credit default swaps(2): Investment grade $ 24,110 $ 39,948 $ 42,887 $ 4,060 $ 111,005 $ (1,222) Non-investment grade 51,914 28,315 13,761 14,671 108,661 1,155 Total $ 76,024 $ 68,263 $ 56,648 $ 18,731 $ 219,666 $ (67) Total credit default swaps sold $ 211,128 $ 200,959 $ 123,957 $ 31,246 $ 567,290 $ 396 Other credit contracts 43 25 — 276 344 (17) Total credit derivatives and other credit contracts $ 211,171 $ 200,984 $ 123,957 $ 31,522 $ 567,634 $ 379 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 _____________ (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 CDS, a breakdown of CDS based on the Firm’s internal credit ratings by investment grade and non-investment grade is provided. Internal credit ratings serve as the Credit Risk Management Department’s assessment of credit risk, and the basis for a comprehensive credit limits framework used to c ontrol credit risk. The Firm uses quantitative models and judgment to estimate the various risk parameters related to each obligor. Internal ratings procedures, methodologies, and models are all independently and formally governed, and models and methodolo gies are reviewed by a separate model risk management oversight function. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investment securities | |
Schedule of Investment Securities | AFS and HTM Securities At June 30, 2016 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 $ 29,923 $ 213 $ 8 $ 30,128 U.S. agency securities(1) 23,221 208 22 23,407 Total U.S. government and agency securities 53,144 421 30 53,535 Corporate and other debt: Commercial mortgage-backed securities: Agency 2,139 5 31 2,113 Non-agency 2,159 36 10 2,185 Auto loan asset-backed securities 2,071 7 — 2,078 Corporate bonds 4,009 66 2 4,073 Collateralized loan obligations 502 — 7 495 FFELP student loan asset-backed securities(2) 3,345 — 105 3,240 Total corporate and other debt 14,225 114 155 14,184 Total AFS debt securities 67,369 535 185 67,719 AFS equity securities 15 — 8 7 Total AFS securities 67,384 535 193 67,726 HTM securities: U.S. government securities: U.S. Treasury securities 3,705 53 — 3,758 U.S. agency securities(1) 8,713 96 — 8,809 Total HTM securities 12,418 149 — 12,567 Total Investment securities $ 79,802 $ 684 $ 193 $ 80,293 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 ______________ U.S. agency securities consist mainly of agency-issued debt, agency mortgage pass-through pool securities and collateralized mortgage obligations . FFELP—Federal Family Education Loan Program. 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 | Investment Securities in an Unrealized Loss Position At June 30, 2016 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 $ 3,028 $ 8 $ — $ — $ 3,028 $ 8 U.S. agency securities 5,731 10 1,225 12 6,956 22 Total U.S. government and agency securities 8,759 18 1,225 12 9,984 30 Corporate and other debt: Commercial mortgage-backed securities: Agency 31 — 1,181 31 1,212 31 Non-agency 216 — 625 10 841 10 Auto loan asset-backed securities 83 — 204 — 287 — Corporate bonds 172 1 175 1 347 2 Collateralized loan obligations — — 494 7 494 7 FFELP student loan asset-backed securities 583 12 2,637 93 3,220 105 Total corporate and other debt 1,085 13 5,316 142 6,401 155 Total AFS debt securities 9,844 31 6,541 154 16,385 185 AFS equity securities 7 8 — — 7 8 Total AFS securities 9,851 39 6,541 154 16,392 193 HTM securities: U.S. government and agency securities: U.S. agency securities 72 — — — 72 — Total HTM securities 72 — — — 72 — Total Investment securities $ 9,923 $ 39 $ 6,541 $ 154 $ 16,464 $ 193 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 |
Schedule of Amortized Cost and Fair Valueof Investment Securities by Contractual Date | Amortized Cost, Fair Value and Annualized Average Yield of Investment Securities by Contractual Maturity Dates At June 30, 2016 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 $ 2,698 $ 2,702 0.7% After 1 year through 5 years 22,137 22,317 1.0% After 5 years through 10 years 5,088 5,109 1.4% Total 29,923 30,128 U.S. agency securities: Due within 1 year 200 200 0.7% After 1 year through 5 years 2,629 2,632 0.5% After 5 years through 10 years 1,327 1,357 1.9% After 10 years 19,065 19,218 1.6% Total 23,221 23,407 Total U.S. government and agency securities 53,144 53,535 1.2% Corporate and other debt: Commercial mortgage-backed securities: Agency: Due within 1 year 73 74 0.8% After 1 year through 5 years 404 406 1.0% After 5 years through 10 years 639 641 1.3% After 10 years 1,023 992 1.6% Total 2,139 2,113 Non-agency: After 10 years 2,159 2,185 1.9% Total 2,159 2,185 Auto loan asset-backed securities: Due within 1 year 4 4 0.9% After 1 year through 5 years 1,902 1,909 1.3% After 5 years through 10 years 165 165 1.6% Total 2,071 2,078 Corporate bonds: Due within 1 year 638 640 1.3% After 1 year through 5 years 2,655 2,695 1.8% After 5 years through 10 years 716 738 2.6% Total 4,009 4,073 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 59 59 0.6% After 5 years through 10 years 922 897 0.9% After 10 years 2,364 2,284 0.9% Total 3,345 3,240 Total corporate and other debt 14,225 14,184 1.5% Total AFS debt securities 67,369 67,719 1.3% AFS equity securities 15 7 ― % Total AFS securities 67,384 67,726 1.3% HTM securities: U.S. government securities: U.S. Treasury securities: Due within 1 year 200 201 0.7% After 1 year through 5 years 1,408 1,422 1.1% After 5 years through 10 years 1,693 1,719 1.7% After 10 years 404 416 2.5% Total 3,705 3,758 U.S. agency securities: After 10 years 8,713 8,809 2.0% Total 8,713 8,809 Total HTM securities 12,418 12,567 1.8% Total Investment securities $ 79,802 $ 80,293 1.4% |
Schedule of Gross Realized Gains and Gross Realized (Losses) on Sales of AFS Securities | Gross Realized Gains and Gross Realized (Losses) on Sales of AFS Securities Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in millions) Gross realized gains $ 71 $ 40 $ 85 $ 69 Gross realized (losses) (1) (10) (3) (14) Total $ 70 $ 30 $ 82 $ 55 |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Collateralized Transactions | |
Information of Offsetting of Assets and Liabilities | Offsetting of Certain Collateralized Transactions At June 30, 2016 Gross Amounts(1) Amounts Offset Net Amounts Presented Amounts Not Offset(2) Net Exposure (dollars in millions) Assets Securities purchased under agreements to resell $ 162,813 $ (65,224) $ 97,589 $ (91,746) $ 5,843 Securities borrowed 138,436 (7,155) 131,281 (124,773) 6,508 Liabilities Securities sold under agreements to repurchase $ 115,552 $ (65,224) $ 50,328 $ (42,541) $ 7,787 Securities loaned 24,396 (7,155) 17,241 (16,724) 517 At December 31, 2015 Gross Amounts(1) Amounts Offset Net Amounts Presented Amounts Not Offset(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 _____________ (1) Amounts include transactions which are either not subject to master netting agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable as follows: $ 5.5 billion of Securities purchased under agreements to resell, $ 3.7 billion of Securities borrowed, $ 7.2 billion of Securities sold under agreements to repurchase and $ 0.4 billion of Securities loaned at June 30, 2016 , and $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 a t December 31, 2015 . (2) Amounts relate to master netting agreements that have been determined by the Firm 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 | Secured Financing Transactions—Maturities and Collateral Pledged Gross Secured Financing Balances by Remaining Contractual Maturity At June 30, 2016 Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total (dollars in millions) Securities sold under agreements to repurchase(1) $ 38,732 $ 30,586 $ 20,309 $ 25,925 $ 115,552 Securities loaned(1) 13,085 50 1,336 9,925 24,396 Gross amount of secured financing included in the offsetting disclosure $ 51,817 $ 30,636 $ 21,645 $ 35,850 $ 139,948 Obligation to return securities received as collateral 18,738 — — — 18,738 Total $ 70,555 $ 30,636 $ 21,645 $ 35,850 $ 158,686 At December 31, 2015 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 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 _____________ (1) Amounts are presented on a gross basis, prior to netting in the consolidated balance sheets . Gross Secured Financing Balances by Class of Collateral Pledged At June 30, 2016 At December 31, 2015 (dollars in millions) Securities sold under agreements to repurchase(1) U.S. government and agency securities $ 39,920 $ 36,609 State and municipal securities 2,104 173 Other sovereign government obligations 42,329 24,820 Asset-backed securities 745 441 Corporate and other debt 8,638 4,020 Corporate equities 21,515 18,473 Other 301 213 Total securities sold under agreements to repurchase $ 115,552 $ 84,749 Securities loaned(1) U.S. government and agency securities $ 182 $ — Other sovereign government obligations 7,454 7,336 Corporate and other debt 123 71 Corporate equities 16,602 16,972 Other 35 8 Total securities loaned $ 24,396 $ 24,387 Gross amount of secured financing included in the offsetting disclosure $ 139,948 $ 109,136 Obligation to return securities received as collateral Corporate and other debt — 3 Corporate equities 18,737 19,313 Other 1 — Total obligation to return securities received as collateral $ 18,738 $ 19,316 Total $ 158,686 $ 128,452 _____________ (1) Amo unts are presented on a gross basis, prior to netting in the consolidated balance sheets . |
Schedule of Cash and Securities Segregated under Federal and Other Regulations | Cash and Securities Deposited with Clearing Organizations or Segregated At June 30, 2016 At December 31, 2015 (dollars in millions) Securities(1) $ 23,710 $ 14,390 Other assets―Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 32,771 31,469 Total $ 56,481 $ 45,859 _____________ 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 balance sheets . |
Loans and Allowance for Credi33
Loans and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Table of Loans Outstanding | Loans Held for Investment and Held for Sale At June 30, 2016 At December 31, 2015 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 $ 24,186 $ 14,448 $ 38,634 $ 23,554 $ 11,924 $ 35,478 Consumer loans 23,337 — 23,337 21,528 — 21,528 Residential real estate loans 22,668 84 22,752 20,863 104 20,967 Wholesale real estate loans 7,415 1,350 8,765 6,839 1,172 8,011 Total loans, gross of allowance for loan losses 77,606 15,882 93,488 72,784 13,200 85,984 Allowance for loan losses (323) — (323) (225) — (225) Total loans, net of allowance for loan losses $ 77,283 $ 15,882 $ 93,165 $ 72,559 $ 13,200 $ 85,759 ______________ Amounts include loans that are made to non-U.S. borrowers of $ 8 ,104 million and $ 9 , 789 million at June 30, 2016 and December 31, 2015 , respectively. Loans at fixed interest rates and floating or adjustable interest rates were $ 10 ,102 million and $ 83,063 million, respectively, at June 30, 2016 and $ 8,471 million and $ 77,288 million, respectively, at December 31, 2015 . |
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 June 30, 2016 Corporate Consumer Residential Real Estate Wholesale Real Estate Total (dollars in millions) Pass $ 22,183 $ 23,337 $ 22,627 $ 7,191 $ 75,338 Special mention 539 — — 224 763 Substandard 1,308 — 41 — 1,349 Doubtful 156 — — — 156 Loss — — — — — Total loans $ 24,186 $ 23,337 $ 22,668 $ 7,415 $ 77,606 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 |
Table of Impaired Loans, Past Due Loans and Allowance for Held-for-investment Loans | Loans by Product Type At June 30, 2016 At December 31, 2015 Corporate Residential Real Estate Total Corporate Residential Real Estate Total (dollars in millions) Impaired loans with allowance $ 244 $ — $ 244 $ 39 $ — $ 39 Impaired loans without allowance(1) 338 30 368 89 17 106 Impaired loans unpaid principal balance(2) 593 32 625 130 19 149 Past due 90 days loans and on nonaccrual 1 20 21 1 21 22 At June 30, 2016 and December 31, 2015 , 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. The impaired loans unpaid principal balance differs from the aggregate amount of impaired loan balances with and witho ut allowance due to various factors, including charge-offs and net deferred loan fees or costs. Loans by Region At June 30, 2016 At December 31, 2015 Americas EMEA Asia-Pacific Total Americas EMEA Asia-Pacific Total (dollars in millions) Impaired loans $ 589 $ 23 $ — $ 612 $ 108 $ 12 $ 25 $ 145 Past due 90 days loans and on nonaccrual 21 — — 21 22 — — 22 Allowance for loan losses 277 43 3 323 183 34 8 225 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, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Gross charge-offs — — — — — Gross recoveries — — — — — Net recoveries/(charge-offs) — — — — — Provision for (release of) loan losses(1) 116 (1) 1 12 128 Other(2) (30) — — — (30) Balance at June 30, 2016 $ 252 $ 4 $ 18 $ 49 $ 323 Allowance for Loan Losses by Impairment Methodology Inherent $ 147 $ 4 $ 18 $ 49 $ 218 Specific 105 — — — 105 Total allowance for loan losses at June 30, 2016 $ 252 $ 4 $ 18 $ 49 $ 323 Loans Evaluated by Impairment Methodology(3) Inherent $ 23,604 $ 23,337 $ 22,638 $ 7,415 $ 76,994 Specific 582 — 30 — 612 Total loans evaluated at June 30, 2016 $ 24,186 $ 23,337 $ 22,668 $ 7,415 $ 77,606 Allowance for Lending Commitments Balance at December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Provision for lending commitments(4) 1 — — 2 3 Other — (1) — — (1) Balance at June 30, 2016 $ 181 $ — $ — $ 6 $ 187 Allowance for Lending Commitments by Impairment Methodology Inherent $ 173 $ — $ — $ 6 $ 179 Specific 8 — — — 8 Total allowance for lending commitments at June 30, 2016 $ 181 $ — $ — $ 6 $ 187 Lending Commitments Evaluated by Impairment Methodology(3) Inherent $ 63,120 $ 5,264 $ 327 $ 496 $ 69,207 Specific 64 — — — 64 Total lending commitments evaluated at June 30, 2016 $ 63,184 $ 5,264 $ 327 $ 496 $ 69,271 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(1) 26 — 2 2 30 Other(2) (10) — — — (10) Balance at June 30, 2015 $ 135 $ 2 $ 9 $ 23 $ 169 Allowance for Loan Losses by Impairment Methodology Inherent $ 130 $ 2 $ 9 $ 23 $ 164 Specific 5 — — — 5 Total allowance for loan losses at June 30, 2015 $ 135 $ 2 $ 9 $ 23 $ 169 Loans Evaluated by Impairment Methodology(3) Inherent $ 22,479 $ 19,464 $ 18,214 $ 6,388 $ 66,545 Specific 21 — 27 — 48 Total loans evaluated at June 30, 2015 $ 22,500 $ 19,464 $ 18,241 $ 6,388 $ 66,593 Allowance for Lending Commitments Balance at December 31, 2014 $ 147 $ — $ — $ 2 $ 149 Provision for lending commitments(4) 6 — — 2 8 Balance at June 30, 2015 $ 153 $ — $ — $ 4 $ 157 Allowance for Lending Commitments by Impairment Methodology Inherent $ 153 $ — $ — $ 4 $ 157 Specific — — — — — Total allowance for lending commitments at June 30, 2015 $ 153 $ — $ — $ 4 $ 157 Lending Commitments Evaluated by Impairment Methodology(3) Inherent $ 65,183 $ 4,235 $ 289 $ 623 $ 70,330 Specific — — — — — Total lending commitments evaluated at June 30, 2015 $ 65,183 $ 4,235 $ 289 $ 623 $ 70,330 _______________ The Firm recorded provisions of $ 16 million and $ 4 million for loan losses for the current quarter and prior year quarter, respectively. Amount includes the impact related to the transfer to loans held for sale and foreign currency translation adjustments. Loan balances are gross of the allowance for loan losses, and lending commitments are gross of the allowance for lending commitments. The Firm recorded a release of $ 13 million and $ 29 million for commitments for the current quarte r and prior year quarter, respectively. |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Deposits [Abstract] | |
Deposits | Deposits At June 30, At December 31, 2016(1) 2015(1) (dollars in millions) Savings and demand deposits $ 151,014 $ 153,346 Time deposits(2) 1,679 2,688 Total(3) $ 152,693 $ 156,034 (1) Total deposits subject to the FDIC insurance at June 30, 2016 and December 31, 2015 were $110 billion and $113 billion, respectively. Of the total time deposits subject to the FDIC insurance at June 30, 2016 and December 31, 2015, $20 million and $14 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) Deposits were primarily held in the U.S. |
Long-Term Borrowings and Othe35
Long-Term Borrowings and Other Secured Financings (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Components of Other Secured Financings | |
Components of Long-term Borrowings | Components of Long-term Borrowings At June 30, 2016 At December 31, 2015 (dollars in millions) Senior debt $ 149,519 $ 140,494 Subordinated debt 11,120 10,404 Junior subordinated debentures 2,853 2,870 Total $ 163,492 $ 153,768 |
Other Secured Financings | Components of Other Secured Financings At At June 30, December 31, 2016 2015 (dollars in millions) Secured financings with original maturities greater than one year $ 8,159 $ 7,629 Secured financings with original maturities one year or less 1,444 1,435 Failed sales(1) 298 400 Total $ 9,901 $ 9,464 ___________ (1) For more information on failed sales, see Note 12. |
Commitments, Guarantees and C36
Commitments, Guarantees and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments, Guarantees and Contingencies [Abstract] | |
Commitments by Period of Expiration | Commitments Years to Maturity at June 30, 2016 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 $ 125 $ — $ 1 $ 42 $ 168 Investment activities 598 93 16 290 997 Corporate lending commitments(1) 15,625 24,405 47,248 1,501 88,779 Consumer lending commitments 5,255 5 — 4 5,264 Residential real estate lending commitments 52 43 87 236 418 Wholesale real estate lending commitments 127 266 137 69 599 Forward-starting reverse repurchase agreements and securities borrowing agreements(2) 69,990 — — — 69,990 Underwriting commitments 25 — — — 25 Total $ 91,797 $ 24,812 $ 47,489 $ 2,142 $ 166,240 (1) Due to the nature of the Firm’s obligations under the commitments, these amounts include certain commitments participated to third parties of $ 3.9 billion. ( 2 ) The Firm 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 June 30, 2016 , $ 59.7 billion settled within three business days. |
Obligations under Guarantee Arrangements | Obligations Under Guarantee Arrangements at June 30, 2016 Maximum Potential Payout/Notional Carrying Amount (Asset)/ Liability Collateral/ Recourse Years to Maturity Less than 1 1-3 3-5 Over 5 Total (dollars in millions) Credit derivative contracts(1) $ 211,128 $ 200,959 $ 123,957 $ 31,246 $ 567,290 $ 396 $ — Other credit contracts 43 25 — 276 344 (17) — Non-credit derivative contracts(1) 1,087,106 638,791 290,370 540,112 2,556,379 81,420 — Standby letters of credit and other financial guarantees issued(2) 803 1,091 1,250 5,888 9,032 (123) 6,831 Market value guarantees 63 250 96 15 424 2 6 Liquidity facilities 3,001 — — — 3,001 (5) 5,406 Whole loan sales guarantees — — 2 23,396 23,398 9 — Securitization representations and warranties — — — 62,180 62,180 103 — General partner guarantees 35 39 53 308 435 85 — (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 Firm’s obligations under these arrangements. |
Variable Interest Entities an37
Variable Interest Entities and Securitization Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Securitization Activities and Variable Interest Entities [Abstract] | |
Consolidated VIEs | Consolidated VIEs Assets and Liabilities by Type of Activity At June 30, 2016 At December 31, 2015 VIE Assets VIE Liabilities VIE Assets VIE Liabilities (dollars in millions) Credit-linked notes $ 901 $ — $ 900 $ — Other structured financings 924 240 787 13 Asset-backed securitizations(1) 319 191 668 423 Other(2) 931 29 245 — Total $ 3,075 $ 460 $ 2,600 $ 436 _________ The value of assets is determined based on the fair value of the liabilities of and the interests owned by the Firm in such VIEs, because the fair values for the liabilities and interests owned are more observable. Other primarily includes certain operating entities, investment funds and structured transactions . Assets and Liabilities by Balance Sheet Caption At June 30, At December 31, 2016 2015 Assets (dollars in millions) Cash and due from banks $ 62 $ 14 Trading assets, at fair value 1,973 1,842 Customer and other receivables 3 3 Goodwill 18 — Intangible assets 141 — Other assets 878 741 Total assets $ 3,075 $ 2,600 Liabilities Other secured financings, at fair value $ 430 $ 431 Other liabilities and accrued expenses 30 5 Total liabilities $ 460 $ 436 |
Non-Consolidated VIEs | Non-Consolidated VIE Assets and Liabilities, Maximum and Carrying Value of Exposure to Loss At June 30, 2016 Mortgage- and Asset-Backed Securitizations Collateralized Debt Obligations Municipal Tender Option Bonds Other Structured Financings Other (dollars in millions) VIE assets that the Firm does not consolidate (unpaid principal balance) $ 115,088 $ 6,825 $ 4,999 $ 4,081 $ 39,281 Maximum exposure to loss: Debt and equity interests $ 12,670 $ 955 $ 31 $ 1,712 $ 4,706 Derivative and other contracts — — 3,001 — 73 Commitments, guarantees and other 612 350 — 363 300 Total maximum exposure to loss $ 13,282 $ 1,305 $ 3,032 $ 2,075 $ 5,079 Carrying value of exposure to loss—Assets: Debt and equity interests $ 12,670 $ 955 $ 3 $ 1,324 $ 4,706 Derivative and other contracts — — 5 — 27 Total carrying value of exposure to loss—Assets $ 12,670 $ 955 $ 8 $ 1,324 $ 4,733 Carrying value of exposure to loss—Liabilities: Derivative and other contracts $ — $ — $ — $ — $ 31 Commitments, guarantees and other — — — 2 10 Total carrying value of exposure to loss—Liabilities $ — $ — $ — $ 2 $ 41 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 Firm does not consolidate (unpaid principal balance) $ 126,872 $ 8,805 $ 4,654 $ 2,201 $ 20,775 Maximum exposure to loss: Debt and equity interests $ 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 $ 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 Non-Consolidated VIE Mortgage- and Asset-Backed Securitization Assets At June 30, 2016 At December 31, 2015 Unpaid Principal Balance Debt and Equity Interests Unpaid Principal Balance Debt and Equity Interests (dollars in millions) Residential mortgages $ 3,708 $ 410 $ 13,787 $ 1,012 Commercial mortgages 55,158 2,576 57,313 2,871 U.S. agency collateralized mortgage obligations 20,853 3,766 13,236 2,763 Other consumer or commercial loans 35,369 5,918 42,536 6,715 Total mortgage- and asset-backed securitization assets $ 115,088 $ 12,670 $ 126,872 $ 13,361 |
Information Regarding SPEs | At June 30, 2016 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) $ 21,239 $ 51,025 $ 11,116 $ 11,668 Retained interests (fair value): Investment grade $ — $ 43 $ 755 $ — Non-investment grade 54 64 — 974 Total retained interests (fair value) $ 54 $ 107 $ 755 $ 974 Interests purchased in the secondary market (fair value): Investment grade $ — $ 32 $ 142 $ — Non-investment grade 53 47 — — Total interests purchased in the secondary market (fair value) $ 53 $ 79 $ 142 $ — Derivative assets (fair value) $ — $ 291 $ — $ 206 Derivative liabilities (fair value) — — — 449 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 _____________ (1) Amounts i nclude CLO transactions managed by unrelated third parties. ( 2 ) Amounts include assets transferred by unrelated transferors. At June 30, 2016 Level 1 Level 2 Level 3 Total (dollars in millions) Retained interests (fair value): Investment grade $ — $ 798 $ — $ 798 Non-investment grade — 15 1,077 1,092 Total retained interests (fair value) $ — $ 813 $ 1,077 $ 1,890 Interests purchased in the secondary market (fair value): Investment grade $ — $ 174 $ — $ 174 Non-investment grade — 85 15 100 Total interests purchased in the secondary market (fair value) $ — $ 259 $ 15 $ 274 Derivative assets (fair value) $ — $ 482 $ 15 $ 497 Derivative liabilities (fair value) — 102 347 449 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 |
Schedule of proceeds from securitization transactions | Proceeds from New Securitization Transactions and Retained Interests in Securitization Transactions Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in millions) Proceeds received from new securitization transactions $ 4,163 $ 6,273 $ 6,876 $ 11,164 Proceeds from retained interests in securitization transactions 502 658 1,133 1,606 Proceeds from Sales to CLO Entities Sponsored by Non-Affiliates Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in millions) Proceeds from sale of corporate loans sold to those SPEs $ — $ 621 $ 31 $ 966 |
Schedule of exposure of securities enter into bilateral OTC equity derivatives | At June 30, 2016 At December 31, 2015 (dollars in millions) Carrying value of assets derecognized at the time of sale and gross cash proceeds $ 9,524 $ 7,878 Fair value of assets sold 9,692 7,935 Fair value of derivative assets recognized in the consolidated balance sheets 218 97 Fair value of derivative liabilities recognized in the consolidated balance sheets 50 40 |
Transfers of Assets Treated as Secured Financings | Carrying Value of Assets and Liabilities Related to Failed Sales At June 30, 2016 At December 31, 2015 Assets Liabilities Assets Liabilities (dollars in millions) Failed sales $ 298 $ 298 $ 400 $ 400 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Regulatory Requirements | |
Capital Measures | Regulatory Capital Measures and Minimum Regulatory Capital Ratios At June 30, 2016 At December 31, 2015 Amount Ratio Minimum Ratio(1) Amount Ratio Minimum Ratio(1) (dollars in millions) Regulatory capital and capital ratios: Common Equity Tier 1 capital $ 59,796 16.8% 5.9% $ 59,409 15.5% 4.5% Tier 1 capital 66,782 18.8% 7.4% 66,722 17.4% 6.0% Total capital 79,830 22.4% 9.4% 79,403 20.7% 8.0% Tier 1 leverage(2) — 8.3% 4.0% — 8.3% 4.0% Assets: Total RWAs $ 355,982 N/A N/A $ 384,162 N/A N/A Adjusted average assets(3) 804,511 N/A N/A 803,574 N/A N/A __________ N/A—Not Applicable (1) Percentages represent minimum regulatory capital ratios under the transitional rules. (2) Tier 1 leverage ratios are calculated under Standardized Approach transitional rules. (3) 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. U.S. Bank Subsidiaries’ Regulatory Capital Measures and Required Capital Ratios Morgan Stanley Bank, N.A. At June 30, 2016 At December 31, 2015 Amount Ratio Required Capital Ratio(1) Amount Ratio Required Capital Ratio(1) (dollars in millions) Common Equity Tier 1 capital $ 14,523 16.8% 6.5% $ 13,333 15.1% 6.5% Tier 1 capital 14,523 16.8% 8.0% 13,333 15.1% 8.0% Total capital 16,321 18.9% 10.0% 15,097 17.1% 10.0% Tier 1 leverage 14,523 10.9% 5.0% 13,333 10.2% 5.0% Morgan Stanley Private Bank, National Association At June 30, 2016 At December 31, 2015 Amount Ratio Required Capital Ratio(1) Amount Ratio Required Capital Ratio(1) (dollars in millions) Common Equity Tier 1 capital $ 5,153 28.0% 6.5% $ 4,197 26.5% 6.5% Tier 1 capital 5,153 28.0% 8.0% 4,197 26.5% 8.0% Total capital 5,186 28.2% 10.0% 4,225 26.7% 10.0% Tier 1 leverage 5,153 11.4% 5.0% 4,197 10.5% 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) | 6 Months Ended |
Jun. 30, 2016 | |
Redeemable Noncontrolling Interests and Total Equity | |
Preferred Stock Outstanding | Preferred Stock Outstanding Shares Carrying Value Outstanding Liquidation At At At June 30, Preference June 30, December 31, Series 2016 per Share 2016 2015 (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 1,500 Total $ 7,520 $ 7,520 ____________ (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. |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | Changes in AOCI by Component, Net of Tax and Noncontrolling Interests Foreign Currency Translation Adjustments AFS Securities Pensions, Postretirement and Other DVA Total (dollars in millions) Balance at March 31, 2016 $ (831) $ 76 $ (373) $ (110) $ (1,238) Change in OCI before reclassifications 52 188 (5) 143 378 Amounts reclassified from AOCI(2)(3) — (45) — — (45) Net OCI during the period 52 143 (5) 143 333 Balance at June 30, 2016 $ (779) $ 219 $ (378) $ 33 $ (905) Foreign Currency Translation Adjustments Change in Net Unrealized Gains (Losses) on AFS Securities Pensions, Postretirement and Other Debt Valuation Adjustment Total (dollars in millions) Balance at March 31, 2015 $ (883) $ 127 $ (510) $ — (1,266) Change in OCI before reclassifications 50 (208) (4) — (162) Amounts reclassified from AOCI(3) — (20) 1 — (19) Net OCI during the period 50 (228) (3) — (181) Balance at June 30, 2015 $ (833) $ (101) $ (513) $ — (1,447) Foreign Currency Translation Adjustments Change in Net Unrealized Gains (Losses) on AFS Securities Pensions, Postretirement and Other Debt Valuation Adjustment Total (dollars in millions) Balance at December 31, 2015 $ (963) $ (319) $ (374) $ — $ (1,656) Cumulative adjustment for accounting change related to DVA(1) — — — (312) (312) Change in OCI before reclassifications 184 590 (3) 371 1,142 Amounts reclassified from AOCI(2)(3) — (52) (1) (26) (79) Net OCI during the period 184 538 (4) 345 1,063 Balance at June 30, 2016 $ (779) $ 219 $ (378) $ 33 $ (905) Balance at December 31, 2014 $ (663) $ (73) $ (512) $ — $ (1,248) Change in OCI before reclassifications (170) 7 (4) — (167) Amounts reclassified from AOCI(3) — (35) 3 — (32) Net OCI during the period (170) (28) (1) — (199) Balance at June 30, 2015 $ (833) $ (101) $ (513) $ — $ (1,447) ___________ In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , a cumulative catch up adjustment was recorded as of January 1, 2016 to move the cumulative DVA amount, net of noncontrolling interest and tax, related to outstanding liabilities under the fair value option election from Retained earnings into AOCI. See Note 2 for further information. A mounts reclassified from AOCI related to realization of DVA are classified within Trading revenues in the consolid ated statements of income. The tax impact in Provision for (benefit from) income taxes resulting from such reclassifications was $ (15) million related to DVA in the current year period. See Note 2 for f urther information . Amounts reclassified from AOCI related to realized gains and losses from sales of AFS securities are classified within Other revenues in the consolid ated statements of income. The tax impact in Provision for (benefit from) income taxes resulting from such reclassifications was $ (26) million in the current quarter and $ (30) million in the current year period , and $ (11) million in the prior quarter and $ (20) mi llion for the prior year period . |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted EPS | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (in millions, except for per share data) Basic EPS: Income from continuing operations $ 1,650 $ 1,833 $ 2,810 $ 4,301 Income (loss) from discontinued operations (4) (2) (7) (7) Net income 1,646 1,831 2,803 4,294 Net income applicable to noncontrolling interests 64 24 87 93 Net income applicable to Morgan Stanley 1,582 1,807 2,716 4,201 Less: Preferred stock dividends (156) (141) (234) (219) Less: Allocation of (earnings) loss to participating RSUs(1) (1) (1) (1) (3) Earnings applicable to Morgan Stanley common shareholders $ 1,425 $ 1,665 $ 2,481 $ 3,979 Weighted average common shares outstanding 1,866 1,919 1,875 1,922 Earnings per basic common share: Income from continuing operations $ 0.77 $ 0.87 $ 1.33 $ 2.07 Income (loss) from discontinued operations (0.01) — (0.01) — Earnings per basic common share $ 0.76 $ 0.87 $ 1.32 $ 2.07 Diluted EPS: Earnings applicable to Morgan Stanley common shareholders $ 1,425 $ 1,665 $ 2,481 $ 3,979 Weighted average common shares outstanding 1,866 1,919 1,875 1,922 Effect of dilutive securities: Stock options and RSUs(1) 33 41 32 40 Weighted average common shares outstanding and common stock equivalents 1,899 1,960 1,907 1,962 Earnings per diluted common share: Income from continuing operations $ 0.75 $ 0.85 $ 1.30 $ 2.03 Income (loss) from discontinued operations — — — — Earnings per diluted common share $ 0.75 $ 0.85 $ 1.30 $ 2.03 _____________ (1) Restricted stock units (“RSUs”) that are considered participating securities are treated as a separate class of securities in the computation of basic EPS, and, therefore, such RSUs are not included as incremental shares in the diluted EPS computations . The diluted EPS computations also do not include weighted average antidilutive RSUs and antidilutive stock options of 14 million shares and 12 million shares for the current quarter and prior year quarter, respectively, and 15 million shares a nd 12 million s hares for the current year period and prior year period, respectively. |
Interest Income and Interest 41
Interest Income and Interest Expense (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Interest Income And Interest Expense | |
Schedule of Details of Interest Income and Interest Expense | Interest Income and Interest Expense Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in millions) Interest income(1): Trading assets(2) $ 526 $ 555 $ 1,109 $ 1,149 Investment securities 237 238 473 438 Loans 680 529 1,327 1,004 Interest bearing deposits with banks 52 22 105 45 Securities purchased under agreements to resell and Securities borrowed(3) (120) (200) (198) (305) Customer receivables and Other(4) 292 242 598 539 Total interest income $ 1,667 $ 1,386 $ 3,414 $ 2,870 Interest expense(1): Deposits $ 15 $ 17 $ 37 $ 35 Short-term borrowings 7 5 14 9 Long-term borrowings 844 915 1,804 1,841 Securities sold under agreements to repurchase and Securities loaned(5) 259 235 513 543 Customer payables and Other(6) (371) (484) (766) (852) Total interest expense $ 754 $ 688 $ 1,602 $ 1,576 Net interest $ 913 $ 698 $ 1,812 $ 1,294 _____________ (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) In cludes 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 customers for stock loan transa ctions incurred to cover customers’ short positions. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Employee Benefit Plans | |
Components of Net Periodic Benefit Expense (Income) | Components of Net Periodic Benefit Expense (Income) for Pension and Other Postretirement Plans Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in millions) Service cost, benefits earned during the period $ 4 $ 5 $ 8 $ 10 Interest cost on projected benefit obligation 39 38 77 77 Expected return on plan assets (30) (29) (60) (59) Net amortization of prior service credit (5) (5) (9) (10) Net amortization of actuarial loss 3 7 6 13 Net periodic benefit expense $ 11 $ 16 $ 22 $ 31 |
Segment and Geographic Inform43
Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Selected Financial Information by Segments | Selected Financial Information Three Months Ended June 30, 2016 Institutional Securities(1) Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues(2)(3) $ 4,496 $ 2,982 $ 581 $ (63) $ 7,996 Interest income 966 920 3 (222) 1,667 Interest expense 884 91 1 (222) 754 Net interest 82 829 2 — 913 Net revenues $ 4,578 $ 3,811 $ 583 $ (63) $ 8,909 Income from continuing operations before income taxes $ 1,506 $ 859 $ 118 $ — $ 2,483 Provision for income taxes 453 343 37 — 833 Income from continuing operations 1,053 516 81 — 1,650 Income (loss) from discontinued operations, net of income taxes (4) — — — (4) Net income 1,049 516 81 — 1,646 Net income applicable to noncontrolling interests 61 — 3 — 64 Net income applicable to Morgan Stanley $ 988 $ 516 $ 78 $ — $ 1,582 Three Months Ended June 30, 2015 Institutional Securities(1) Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues(2)(3) $ 5,205 $ 3,138 $ 757 $ (55) $ 9,045 Interest income 723 782 — (119) 1,386 Interest expense 756 45 6 (119) 688 Net interest (33) 737 (6) — 698 Net revenues $ 5,172 $ 3,875 $ 751 $ (55) $ 9,743 Income from continuing operations before income taxes $ 1,622 $ 885 $ 220 $ — $ 2,727 Provision for income taxes 511 324 59 — 894 Income from continuing operations 1,111 561 161 — 1,833 Income (loss) from discontinued operations, net of income taxes (2) — — — (2) Net income 1,109 561 161 — 1,831 Net income applicable to noncontrolling interests 22 — 2 — 24 Net income applicable to Morgan Stanley $ 1,087 $ 561 $ 159 $ — $ 1,807 Six Months Ended June 30, 2016 Institutional Securities(1) Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues(2)(3) $ 8,141 $ 5,819 $ 1,059 $ (130) $ 14,889 Interest income 2,019 1,834 4 (443) 3,414 Interest expense 1,868 174 3 (443) 1,602 Net interest 151 1,660 1 — 1,812 Net revenues $ 8,292 $ 7,479 $ 1,060 $ (130) $ 16,701 Income from continuing operations before income taxes $ 2,414 $ 1,645 $ 162 $ — $ 4,221 Provision for income taxes 728 636 47 — 1,411 Income from continuing operations 1,686 1,009 115 — 2,810 Income (loss) from discontinued operations, net of income taxes (7) — — — (7) Net income 1,679 1,009 115 — 2,803 Net income applicable to noncontrolling interests 100 — (13) — 87 Net income applicable to Morgan Stanley $ 1,579 $ 1,009 $ 128 $ — $ 2,716 Six Months Ended June 30, 2015 Institutional Securities(1) Wealth Management Investment Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues(2)(3) $ 10,751 $ 6,283 $ 1,431 $ (109) $ 18,356 Interest income 1,593 1,519 1 (243) 2,870 Interest expense 1,714 93 12 (243) 1,576 Net interest (121) 1,426 (11) — 1,294 Net revenues $ 10,630 $ 7,709 $ 1,420 $ (109) $ 19,650 Income from continuing operations before income taxes $ 3,435 $ 1,740 $ 407 $ — $ 5,582 Provision for income taxes(4) 517 644 120 — 1,281 Income from continuing operations 2,918 1,096 287 — 4,301 Income (loss) from discontinued operations, net of income taxes (7) — — — (7) Net income 2,911 1,096 287 — 4,294 Net income applicable to noncontrolling interests 74 — 19 — 93 Net income applicable to Morgan Stanley $ 2,837 $ 1,096 $ 268 $ — $ 4,201 (1) In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , for the current quarter and current year period DVA gains (losses) are recorded within OCI when unrealized and in Trading revenues when realized. In the prior year quarter and prior year period, the realized and unrealized DVA gains (losses) are recorded in Trading revenues. See Notes 2 and 14 for furth er information. (2) In certain management fee arrangements, the Firm 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 benchmark ret urns 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 agreement. The Fi rm’s portion of unrealized cumulative amount of performance-based fee revenue (for which the Firm is not obligated to pay compensation) at risk of reversing if fund performance falls below stated investment management agreement benchmarks was approximately $ 421 million and $ 422 million at June 30, 2016 and December 31, 2015, respectively. See Note 11 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received . (3) The Firm waiv es a portion of its fees from certain registered money market funds that comply with the requirements of Rule 2a-7 of the Investment Company Act of 1940. These fee waivers resulted in a reduction of fees of approximately $ 12 million a nd $ 50 million for the current quarter and prior year quarter, respectively, and $ 35 million and $ 100 million for the current year period and prior year period, respectively. (4 ) The Firm’s effective tax rate from continuing operations for the prior yea r period included a net discrete tax benefit of $ 564 million, within Institutional Securities (see Note 18). |
Assets by Segments | Total Assets by Business Segment At June 30, At December 31, 2016 2015 (dollars in millions) Institutional Securities $ 641,373 $ 602,714 Wealth Management 182,801 179,708 Investment Management 4,699 5,043 Total(1) $ 828,873 $ 787,465 (1) Corporate assets have been fully allocated to the business segments. |
Net Revenues by Geographic Area | Net Revenues by Region Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in millions) Americas $ 6,538 $ 6,777 $ 12,290 $ 13,707 EMEA 1,312 1,436 2,441 3,198 Asia-Pacific 1,059 1,530 1,970 2,745 Net revenues $ 8,909 $ 9,743 $ 16,701 $ 19,650 |
Introduction and Basis of Pre44
Introduction and Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
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 | ||
Accounting standard early adoption | |||
Disclosures by disposal groups, including discontinued operations | |||
Net noncash increase in total assets | $ 126 | ||
Real Estate Funds | |||
Consolidated Statements of Cash Flows | |||
Non-cash reduction of assets | $ 169 | ||
Reduction in nonredeemable noncontrolling interests primarily related to deconsolidation of certain legal entities associated with a real estate fund | 191 | ||
Global Oil Merchanting Business | |||
Disclosures by disposal groups, including discontinued operations | |||
Gain (loss) on sales of assets | $ 59 | $ 59 |
Significant Accounting Polici45
Significant Accounting Policies (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
New accounting pronouncement early adoption | |||
Deconsolidation of certain legal entities associated with a real estate fund | $ (191) | ||
Accounting standard early adoption | |||
New accounting pronouncement early adoption | |||
Debt valuation adjustment | [1] | $ 0 | |
Accounting standard early adoption | Primarily from certain merchant banking funds in Investment Management | |||
New accounting pronouncement early adoption | |||
Consolidations related to certain merchant banking funds in Investment Management | 206 | ||
Deconsolidation of certain legal entities associated with a real estate fund | (75) | ||
Increase in assets related to certain merchant banking | 131 | ||
Accounting standard early adoption | Retained Earnings | |||
New accounting pronouncement early adoption | |||
Debt valuation adjustment | [1] | 312 | |
Accounting standard early adoption | Accumulated Other Comprehensive Income (Loss) | |||
New accounting pronouncement early adoption | |||
Debt valuation adjustment | [1] | $ (312) | |
[1] | In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , a cumulative catch up adjustment was recorded as of January 1, 2016 to move the cumulative DVA amount, net of noncontrolling interest and tax, related to outstanding liabilities under the fair value option election from Retained earnings into Accumulated other comprehensive income (loss) (“AOCI”). See Notes 2 and 14 for further information. |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets at Fair Value | ||
Total trading assets | $ 256,794 | $ 239,505 |
Total AFS securities, fair value | 67,726 | 66,759 |
Securities purchased under agreement to resell | 555 | 806 |
Intangible assets | 3 | 5 |
Commitment | 510 | 670 |
Investment measured at fair value using the NAV per share | 3,246 | 3,843 |
Liabilities at Fair Value | ||
Deposits | 95 | 125 |
Short-term borrowings | 511 | 1,648 |
Obligation to return securities received as collateral | 18,738 | 19,316 |
Total trading liabilities | 140,662 | 128,455 |
Securities sold under agreement to repurchase | 699 | 683 |
Other secured financings | 2,921 | 2,854 |
Long-term borrowings | 37,804 | 33,045 |
Recurring | ||
Assets at Fair Value | ||
U.S. government and agency securities | 47,465 | 36,341 |
Other sovereign government obligations | 27,551 | 20,963 |
Corporate and other debt | 27,228 | 29,847 |
Corporate equities | 100,957 | 107,108 |
Securities received as collateral | 10,128 | 11,225 |
Derivative and other contracts | 38,158 | 28,613 |
Netting | (576,436) | (442,965) |
Investments | 1,868 | 1,244 |
Physical commodities | 193 | 321 |
Total trading assets | 253,548 | 235,662 |
Total AFS securities, fair value | 67,726 | 66,759 |
Securities purchased under agreement to resell | 555 | 806 |
Intangible assets | 3 | 5 |
Total assets | 321,832 | 303,232 |
Investment measured at fair value using the NAV per share | 3,246 | 3,843 |
Liabilities at Fair Value | ||
Deposits | 95 | 125 |
Short-term borrowings | 511 | 1,648 |
U.S. government and agency securities | 13,452 | 13,913 |
Other sovereign government obligations | 18,553 | 13,528 |
Corporate and other debt | 6,054 | 5,049 |
Corporate equities | 46,542 | 47,175 |
Obligation to return securities received as collateral | 18,738 | 19,316 |
Derivative and other contracts | 37,323 | 29,474 |
Netting | (556,319) | (427,876) |
Total trading liabilities | 140,662 | 128,455 |
Securities sold under agreement to repurchase | 699 | 683 |
Other secured financings | 2,921 | 2,854 |
Long-term borrowings | 37,804 | 33,045 |
Total liabilities | 182,692 | 166,810 |
Recurring | Corporate loans | ||
Assets at Fair Value | ||
Loan and lending commitment held at fair value | 7,114 | 7,286 |
Recurring | Residential real estate | ||
Assets at Fair Value | ||
Loan and lending commitment held at fair value | 1,721 | 1,885 |
Recurring | Wholesale real estate | ||
Assets at Fair Value | ||
Loan and lending commitment held at fair value | 462 | 1,447 |
Recurring | Net Asset Value | ||
Assets at Fair Value | ||
Investments | 3,246 | 3,843 |
Recurring | U.S. Treasury Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 24,565 | 17,658 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 12,983 | 12,932 |
Recurring | U.S. Agency Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 22,900 | 18,683 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 469 | 981 |
Recurring | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 1,953 | 1,670 |
Liabilities at Fair Value | ||
Corporate and other debt | 3 | |
Recurring | Residential Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 802 | 1,797 |
Recurring | Commercial Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 1,012 | 1,592 |
Liabilities at Fair Value | ||
Corporate and other debt | 2 | |
Recurring | Asset-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 230 | 519 |
Liabilities at Fair Value | ||
Corporate and other debt | 449 | |
Recurring | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 12,027 | 10,226 |
Liabilities at Fair Value | ||
Corporate and other debt | 5,584 | 5,035 |
Recurring | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 552 | 714 |
Recurring | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 9,297 | 10,618 |
Recurring | Lending Commitments | ||
Liabilities at Fair Value | ||
Corporate and other debt | 0 | 3 |
Recurring | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 1,355 | 2,711 |
Liabilities at Fair Value | ||
Corporate and other debt | 18 | 9 |
Recurring | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 463,574 | 326,044 |
Liabilities at Fair Value | ||
Derivative and other contracts | 437,766 | 307,409 |
Recurring | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 16,461 | 22,919 |
Liabilities at Fair Value | ||
Derivative and other contracts | 17,821 | 23,665 |
Recurring | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 76,505 | 64,955 |
Liabilities at Fair Value | ||
Derivative and other contracts | 78,625 | 65,350 |
Recurring | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 42,529 | 40,289 |
Liabilities at Fair Value | ||
Derivative and other contracts | 46,549 | 46,132 |
Recurring | Commodity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 15,509 | 17,152 |
Liabilities at Fair Value | ||
Derivative and other contracts | 12,779 | 14,751 |
Recurring | Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 16 | 219 |
Liabilities at Fair Value | ||
Derivative and other contracts | 102 | 43 |
Recurring | Principal Investments | ||
Assets at Fair Value | ||
Investments | 809 | 550 |
Recurring | Other Investments | ||
Assets at Fair Value | ||
Investments | 1,059 | 694 |
Recurring | Level 1 | ||
Assets at Fair Value | ||
U.S. government and agency securities | 25,360 | 18,455 |
Other sovereign government obligations | 20,942 | 13,559 |
Corporate and other debt | 0 | 0 |
Corporate equities | 100,018 | 106,296 |
Securities received as collateral | 10,121 | 11,221 |
Derivative and other contracts | 962 | 414 |
Netting | (4,184) | (3,840) |
Investments | 316 | 183 |
Physical commodities | 0 | 0 |
Total trading assets | 157,719 | 150,128 |
Total AFS securities, fair value | 31,062 | 34,351 |
Securities purchased under agreement to resell | 0 | 0 |
Intangible assets | 0 | 0 |
Total assets | 188,781 | 184,479 |
Liabilities at Fair Value | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
U.S. government and agency securities | 13,341 | 13,786 |
Other sovereign government obligations | 15,885 | 10,970 |
Corporate and other debt | 0 | 0 |
Corporate equities | 46,440 | 47,123 |
Obligation to return securities received as collateral | 18,731 | 19,312 |
Derivative and other contracts | 497 | 230 |
Netting | (4,184) | (3,840) |
Total trading liabilities | 94,894 | 91,421 |
Securities sold under agreement to repurchase | 0 | 0 |
Other secured financings | 0 | 0 |
Long-term borrowings | 44 | 0 |
Total liabilities | 94,938 | 91,421 |
Recurring | Level 1 | U.S. Treasury Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 24,565 | 17,658 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 12,983 | 12,932 |
Recurring | Level 1 | U.S. Agency Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 795 | 797 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 358 | 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 |
Liabilities at Fair Value | ||
Corporate and other debt | 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 | 791 | 406 |
Liabilities at Fair Value | ||
Derivative and other contracts | 969 | 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 | 140 | 55 |
Liabilities at Fair Value | ||
Derivative and other contracts | 82 | 22 |
Recurring | Level 1 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,368 | 653 |
Liabilities at Fair Value | ||
Derivative and other contracts | 1,262 | 570 |
Recurring | Level 1 | Commodity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 2,847 | 3,140 |
Liabilities at Fair Value | ||
Derivative and other contracts | 2,368 | 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 | 21 | 20 |
Recurring | Level 1 | Other Investments | ||
Assets at Fair Value | ||
Investments | 295 | 163 |
Recurring | Level 2 | ||
Assets at Fair Value | ||
U.S. government and agency securities | 22,085 | 17,886 |
Other sovereign government obligations | 6,607 | 7,400 |
Corporate and other debt | 20,532 | 22,309 |
Corporate equities | 367 | 379 |
Securities received as collateral | 7 | 3 |
Derivative and other contracts | 97,938 | 79,434 |
Netting | (505,871) | (380,443) |
Investments | 578 | 354 |
Physical commodities | 193 | 321 |
Total trading assets | 148,307 | 128,086 |
Total AFS securities, fair value | 36,664 | 32,408 |
Securities purchased under agreement to resell | 555 | 806 |
Intangible assets | 3 | 0 |
Total assets | 185,529 | 161,300 |
Liabilities at Fair Value | ||
Deposits | 65 | 106 |
Short-term borrowings | 511 | 1,647 |
U.S. government and agency securities | 111 | 127 |
Other sovereign government obligations | 2,668 | 2,558 |
Corporate and other debt | 6,045 | 5,045 |
Corporate equities | 76 | 35 |
Obligation to return securities received as collateral | 7 | 3 |
Derivative and other contracts | 75,915 | 63,966 |
Netting | (505,871) | (380,443) |
Total trading liabilities | 84,822 | 71,734 |
Securities sold under agreement to repurchase | 549 | 532 |
Other secured financings | 2,480 | 2,393 |
Long-term borrowings | 35,831 | 31,058 |
Total liabilities | 124,258 | 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 | 22,085 | 17,886 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 111 | 127 |
Recurring | Level 2 | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 1,943 | 1,651 |
Liabilities at Fair Value | ||
Corporate and other debt | 3 | |
Recurring | Level 2 | Residential Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 586 | 1,456 |
Recurring | Level 2 | Commercial Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 961 | 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 | 142 | 494 |
Liabilities at Fair Value | ||
Corporate and other debt | 449 | |
Recurring | Level 2 | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 11,751 | 9,959 |
Liabilities at Fair Value | ||
Corporate and other debt | 5,578 | 5,035 |
Recurring | Level 2 | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 443 | 284 |
Recurring | Level 2 | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 3,879 | 4,682 |
Recurring | Level 2 | Lending Commitments | ||
Liabilities at Fair Value | ||
Corporate and other debt | 0 | 3 |
Recurring | Level 2 | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 827 | 2,263 |
Liabilities at Fair Value | ||
Corporate and other debt | 15 | 5 |
Recurring | Level 2 | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 462,243 | 323,586 |
Liabilities at Fair Value | ||
Derivative and other contracts | 436,022 | 305,151 |
Recurring | Level 2 | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 16,157 | 22,258 |
Liabilities at Fair Value | ||
Derivative and other contracts | 16,403 | 22,160 |
Recurring | Level 2 | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 76,264 | 64,608 |
Liabilities at Fair Value | ||
Derivative and other contracts | 78,441 | 65,177 |
Recurring | Level 2 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 40,524 | 38,552 |
Liabilities at Fair Value | ||
Derivative and other contracts | 43,177 | 42,447 |
Recurring | Level 2 | Commodity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 8,605 | 10,654 |
Liabilities at Fair Value | ||
Derivative and other contracts | 7,652 | 9,431 |
Recurring | Level 2 | Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 16 | 219 |
Liabilities at Fair Value | ||
Derivative and other contracts | 91 | 43 |
Recurring | Level 2 | Principal Investments | ||
Assets at Fair Value | ||
Investments | 19 | 44 |
Recurring | Level 2 | Other Investments | ||
Assets at Fair Value | ||
Investments | 559 | 310 |
Recurring | Level 3 | ||
Assets at Fair Value | ||
U.S. government and agency securities | 20 | 0 |
Other sovereign government obligations | 2 | 4 |
Corporate and other debt | 6,696 | 7,538 |
Corporate equities | 572 | 433 |
Securities received as collateral | 0 | 1 |
Derivative and other contracts | 3,102 | 4,327 |
Netting | (2,537) | (3,120) |
Investments | 974 | 707 |
Physical commodities | 0 | 0 |
Total trading assets | 11,366 | 13,010 |
Total AFS securities, fair value | 0 | 0 |
Securities purchased under agreement to resell | 0 | 0 |
Intangible assets | 0 | 5 |
Total assets | 11,366 | 13,015 |
Liabilities at Fair Value | ||
Deposits | 30 | 19 |
Short-term borrowings | 0 | 1 |
U.S. government and agency securities | 0 | 0 |
Other sovereign government obligations | 0 | 0 |
Corporate and other debt | 9 | 4 |
Corporate equities | 26 | 17 |
Obligation to return securities received as collateral | 0 | 1 |
Derivative and other contracts | 4,638 | 5,751 |
Netting | (2,537) | (3,120) |
Total trading liabilities | 4,673 | 5,773 |
Securities sold under agreement to repurchase | 150 | 151 |
Other secured financings | 441 | 461 |
Long-term borrowings | 1,929 | 1,987 |
Total liabilities | 7,223 | 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 | 20 | 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 | 10 | 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 | 216 | 341 |
Recurring | Level 3 | Commercial Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 51 | 72 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Level 3 | Asset-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 88 | 25 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Level 3 | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 276 | 267 |
Liabilities at Fair Value | ||
Corporate and other debt | 6 | 0 |
Recurring | Level 3 | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 109 | 430 |
Recurring | Level 3 | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 5,418 | 5,936 |
Recurring | Level 3 | Lending Commitments | ||
Liabilities at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 3 | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 528 | 448 |
Liabilities at Fair Value | ||
Corporate and other debt | 3 | 4 |
Recurring | Level 3 | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 540 | 2,052 |
Liabilities at Fair Value | ||
Derivative and other contracts | 775 | 1,792 |
Recurring | Level 3 | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 304 | 661 |
Liabilities at Fair Value | ||
Derivative and other contracts | 1,418 | 1,505 |
Recurring | Level 3 | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 101 | 292 |
Liabilities at Fair Value | ||
Derivative and other contracts | 102 | 151 |
Recurring | Level 3 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 637 | 1,084 |
Liabilities at Fair Value | ||
Derivative and other contracts | 2,110 | 3,115 |
Recurring | Level 3 | Commodity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 4,057 | 3,358 |
Liabilities at Fair Value | ||
Derivative and other contracts | 2,759 | 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 | 11 | 0 |
Recurring | Level 3 | Principal Investments | ||
Assets at Fair Value | ||
Investments | 769 | 486 |
Recurring | Level 3 | Other Investments | ||
Assets at Fair Value | ||
Investments | 205 | 221 |
Recurring | Counterparty and Cash Collateral Netting | ||
Assets at Fair Value | ||
Derivative and other contracts | (63,844) | (55,562) |
Netting | (63,844) | (55,562) |
Total trading assets | (63,844) | (55,562) |
Total assets | (63,844) | (55,562) |
Liabilities at Fair Value | ||
Derivative and other contracts | (43,727) | (40,473) |
Netting | (43,727) | (40,473) |
Total trading liabilities | (43,727) | (40,473) |
Total liabilities | $ (43,727) | $ (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 | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Intangible Assets | |||||
Assets | |||||
Beginning balance | $ 4 | $ 5 | $ 5 | $ 6 | $ 6 |
Realized and Unrealized Gains (Losses) | 0 | 1 | 0 | 1 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | (1) | |
Net Transfers | (4) | 0 | (5) | 0 | |
Ending balance | 0 | 6 | 0 | 6 | 5 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | 1 | 0 | 1 | |
Deposits | |||||
Liabilities | |||||
Beginning balance | 23 | 19 | |||
Realized and Unrealized Gains (Losses) | 1 | (2) | |||
Purchases | 0 | 0 | |||
Sales | 0 | 0 | |||
Issuances | 8 | 13 | |||
Settlements | 0 | 0 | |||
Net Transfers | (2) | (4) | |||
Ending balance | 30 | 30 | 19 | ||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | (1) | (2) | |||
Short-term borrowings | |||||
Liabilities | |||||
Beginning balance | 1 | ||||
Realized and Unrealized Gains (Losses) | 0 | ||||
Purchases | 0 | ||||
Sales | 0 | ||||
Issuances | 0 | ||||
Settlements | (1) | ||||
Net Transfers | 0 | ||||
Ending balance | 0 | 0 | 1 | ||
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 0 | ||||
Securities Sold under agreements to repurchase | |||||
Liabilities | |||||
Beginning balance | 151 | 154 | 151 | 153 | 153 |
Realized and Unrealized Gains (Losses) | (1) | 0 | 1 | (1) | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Net Transfers | 0 | 0 | 0 | 0 | |
Ending balance | 150 | 154 | 150 | 154 | 151 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 1 | 0 | 1 | (1) | |
Other Secured Financings | |||||
Liabilities | |||||
Beginning balance | 454 | 133 | 461 | 149 | 149 |
Realized and Unrealized Gains (Losses) | 14 | (2) | (32) | (6) | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 23 | 37 | 69 | 37 | |
Settlements | (22) | 0 | (43) | (24) | |
Net Transfers | (28) | 0 | (78) | 0 | |
Ending balance | 441 | 168 | 441 | 168 | 461 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | (14) | 2 | (32) | 2 | |
Long-term borrowings | |||||
Liabilities | |||||
Beginning balance | 1,798 | 1,738 | 1,987 | 1,934 | 1,934 |
Realized and Unrealized Gains (Losses) | (21) | (51) | (12) | 65 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 164 | 549 | 276 | 612 | |
Settlements | (131) | (88) | (167) | (300) | |
Net Transfers | 119 | 73 | (179) | 40 | |
Ending balance | 1,929 | 2,221 | 1,929 | 2,221 | 1,987 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 26 | 51 | (6) | 59 | |
Trading Assets | U.S. Agency Securities | |||||
Assets | |||||
Beginning balance | 8 | 0 | 0 | 0 | 0 |
Realized and Unrealized Gains (Losses) | 0 | 0 | 1 | 0 | |
Purchases | 0 | 0 | 0 | 3 | |
Sales | (18) | (3) | (19) | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Net Transfers | 30 | 6 | 38 | 0 | |
Ending balance | 20 | 3 | 20 | 3 | 0 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | 0 | 1 | 0 | |
Trading Assets | Other Sovereign Government Obligations | |||||
Assets | |||||
Beginning balance | 8 | 11 | 4 | 41 | 41 |
Realized and Unrealized Gains (Losses) | 0 | 0 | 0 | 1 | |
Purchases | 0 | 5 | 0 | 6 | |
Sales | (3) | (1) | (5) | (32) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Net Transfers | (3) | (3) | 3 | (4) | |
Ending balance | 2 | 12 | 2 | 12 | 4 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | 0 | 1 | 1 | |
Trading Assets | Corporate and Other Debt | |||||
Assets | |||||
Beginning balance | 7,644 | 7,064 | 7,538 | 8,044 | 8,044 |
Realized and Unrealized Gains (Losses) | (10) | 98 | (81) | 194 | |
Purchases | 503 | 2,431 | 1,268 | 2,905 | |
Sales | (803) | (1,105) | (1,320) | (1,119) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (596) | (571) | (672) | (2,411) | |
Net Transfers | (42) | (214) | (37) | 90 | |
Ending balance | 6,696 | 7,703 | 6,696 | 7,703 | 7,538 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (30) | (2) | (77) | 45 | |
Trading Assets | Corporate and Other Debt | State and Municipal Securities | |||||
Assets | |||||
Beginning balance | 5 | 0 | 19 | 0 | 0 |
Realized and Unrealized Gains (Losses) | 1 | 1 | 1 | 1 | |
Purchases | 4 | 4 | 4 | 4 | |
Sales | 0 | (9) | (15) | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Net Transfers | 0 | 11 | 1 | 2 | |
Ending balance | 10 | 7 | 10 | 7 | 19 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 2 | 1 | 1 | 1 | |
Trading Assets | Corporate and Other Debt | Residential Mortgage-backed Securities | |||||
Assets | |||||
Beginning balance | 292 | 296 | 341 | 175 | 175 |
Realized and Unrealized Gains (Losses) | 3 | 2 | (19) | 21 | |
Purchases | 0 | 138 | 19 | 163 | |
Sales | (82) | (32) | (133) | (51) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Net Transfers | 3 | (26) | 8 | 70 | |
Ending balance | 216 | 378 | 216 | 378 | 341 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (5) | 2 | (14) | 12 | |
Trading Assets | Corporate and Other Debt | Commercial Mortgage-backed Securities | |||||
Assets | |||||
Beginning balance | 59 | 180 | 72 | 96 | 96 |
Realized and Unrealized Gains (Losses) | (3) | (4) | (10) | (6) | |
Purchases | 1 | 5 | 0 | 16 | |
Sales | (4) | (9) | (19) | (22) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Net Transfers | (2) | (88) | 8 | 0 | |
Ending balance | 51 | 84 | 51 | 84 | 72 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (5) | (5) | (11) | (9) | |
Trading Assets | Corporate and Other Debt | Asset-backed Securities | |||||
Assets | |||||
Beginning balance | 4 | 67 | 25 | 76 | 76 |
Realized and Unrealized Gains (Losses) | (4) | 5 | (7) | (4) | |
Purchases | 6 | 11 | 7 | 11 | |
Sales | (1) | (64) | (18) | (29) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Net Transfers | 83 | 0 | 81 | (35) | |
Ending balance | 88 | 19 | 88 | 19 | 25 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (4) | 1 | (8) | 2 | |
Trading Assets | Corporate and Other Debt | Corporate Bonds | |||||
Assets | |||||
Beginning balance | 224 | 424 | 267 | 386 | 386 |
Realized and Unrealized Gains (Losses) | 17 | (4) | 62 | 10 | |
Purchases | 116 | 228 | 113 | 213 | |
Sales | (35) | (150) | (128) | (126) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (2) | 0 | (1) | |
Net Transfers | (46) | (17) | (38) | (3) | |
Ending balance | 276 | 479 | 276 | 479 | 267 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 17 | (16) | 61 | 9 | |
Trading Assets | Corporate and Other Debt | Collateralized Debt and Loan Obligations | |||||
Assets | |||||
Beginning balance | 348 | 822 | 430 | 1,152 | 1,152 |
Realized and Unrealized Gains (Losses) | 18 | 68 | 5 | 145 | |
Purchases | 3 | 300 | 22 | 404 | |
Sales | (178) | (439) | (224) | (682) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (78) | 0 | (331) | |
Net Transfers | (82) | (13) | (124) | (28) | |
Ending balance | 109 | 660 | 109 | 660 | 430 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 18 | (10) | 17 | (6) | |
Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | |||||
Assets | |||||
Beginning balance | 6,185 | 4,789 | 5,936 | 5,874 | 5,874 |
Realized and Unrealized Gains (Losses) | (46) | 31 | (111) | 35 | |
Purchases | 360 | 1,615 | 970 | 2,082 | |
Sales | (484) | (351) | (720) | (209) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (596) | (491) | (672) | (2,078) | |
Net Transfers | (1) | (81) | 15 | (192) | |
Ending balance | 5,418 | 5,512 | 5,418 | 5,512 | 5,936 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (55) | 26 | (121) | 30 | |
Trading Assets | Corporate and Other Debt | Other Debt | |||||
Assets | |||||
Beginning balance | 527 | 486 | 448 | 285 | 285 |
Realized and Unrealized Gains (Losses) | 4 | (1) | (2) | (8) | |
Purchases | 13 | 130 | 133 | 12 | |
Sales | (19) | (51) | (63) | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | (1) | |
Net Transfers | 3 | 0 | 12 | 276 | |
Ending balance | 528 | 564 | 528 | 564 | 448 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 2 | (1) | (2) | 6 | |
Trading Assets | Corporate Equities | |||||
Assets | |||||
Beginning balance | 430 | 230 | 433 | 272 | 272 |
Realized and Unrealized Gains (Losses) | (63) | 38 | (45) | 64 | |
Purchases | 273 | 266 | 296 | 260 | |
Sales | (82) | (92) | (119) | (147) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Net Transfers | 14 | 44 | 7 | 37 | |
Ending balance | 572 | 486 | 572 | 486 | 433 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (63) | 26 | (64) | 49 | |
Trading Assets | Net Derivative and Other Contracts | |||||
Assets | |||||
Beginning balance | (1,060) | (2,310) | (1,424) | (1,784) | (1,784) |
Realized and Unrealized Gains (Losses) | 227 | 109 | (171) | 259 | |
Purchases | 58 | 49 | 82 | 98 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | (151) | (204) | (209) | (412) | |
Settlements | 216 | 252 | 837 | 383 | |
Net Transfers | (826) | 428 | (651) | (220) | |
Ending balance | (1,536) | (1,676) | (1,536) | (1,676) | (1,424) |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (127) | 0 | (461) | 107 | |
Trading Assets | Net Derivative and Other Contracts | Interest Rate Contracts | |||||
Assets | |||||
Beginning balance | 169 | (496) | 260 | (173) | (173) |
Realized and Unrealized Gains (Losses) | (159) | 95 | 305 | 188 | |
Purchases | 2 | 4 | 3 | 9 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | (7) | (13) | (21) | (20) | |
Settlements | 42 | 14 | (60) | 124 | |
Net Transfers | (282) | 160 | (722) | (364) | |
Ending balance | (235) | (236) | (235) | (236) | 260 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (157) | 135 | 205 | 197 | |
Trading Assets | Net Derivative and Other Contracts | Credit Contracts | |||||
Assets | |||||
Beginning balance | (723) | (984) | (844) | (743) | (743) |
Realized and Unrealized Gains (Losses) | 65 | (24) | (343) | (276) | |
Purchases | 1 | 4 | 1 | 17 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | (24) | 0 | (54) | |
Settlements | 93 | 23 | 153 | 31 | |
Net Transfers | (550) | 16 | (81) | 36 | |
Ending balance | (1,114) | (989) | (1,114) | (989) | (844) |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 53 | (29) | (360) | (284) | |
Trading Assets | Net Derivative and Other Contracts | Foreign Exchange Contracts | |||||
Assets | |||||
Beginning balance | 126 | 297 | 141 | 151 | 151 |
Realized and Unrealized Gains (Losses) | (58) | 57 | (109) | 121 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | (1) | 0 | (1) | |
Settlements | (94) | 43 | (201) | 144 | |
Net Transfers | 25 | 50 | 168 | 31 | |
Ending balance | (1) | 446 | (1) | 446 | 141 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (47) | 82 | (82) | 120 | |
Trading Assets | Net Derivative and Other Contracts | Equity Contracts | |||||
Assets | |||||
Beginning balance | (1,832) | (2,472) | (2,031) | (2,165) | (2,165) |
Realized and Unrealized Gains (Losses) | 168 | (23) | (321) | (73) | |
Purchases | 50 | 39 | 71 | 69 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | (140) | (54) | (184) | (225) | |
Settlements | 263 | 206 | 1,121 | 156 | |
Net Transfers | 18 | 202 | (129) | 136 | |
Ending balance | (1,473) | (2,102) | (1,473) | (2,102) | (2,031) |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | (106) | (161) | (434) | (160) | |
Trading Assets | Net Derivative and Other Contracts | Commodity Contracts | |||||
Assets | |||||
Beginning balance | 1,200 | 1,345 | 1,050 | 1,146 | 1,146 |
Realized and Unrealized Gains (Losses) | 211 | 4 | 297 | 299 | |
Purchases | 5 | 2 | 7 | 3 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | (4) | (112) | (4) | (112) | |
Settlements | (88) | (34) | (176) | (72) | |
Net Transfers | (26) | 0 | 124 | (59) | |
Ending balance | 1,298 | 1,205 | 1,298 | 1,205 | 1,050 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 130 | (27) | 210 | 234 | |
Trading Assets | Net Derivative and Other Contracts | Other Contracts | |||||
Assets | |||||
Beginning balance | 0 | 0 | |||
Realized and Unrealized Gains (Losses) | 0 | 0 | |||
Purchases | 0 | 0 | |||
Sales | 0 | 0 | |||
Issuances | 0 | 0 | |||
Settlements | 0 | 0 | |||
Net Transfers | (11) | (11) | |||
Ending balance | (11) | (11) | 0 | ||
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | 0 | |||
Trading Assets | Investments | |||||
Assets | |||||
Beginning balance | 922 | 1,220 | 707 | 1,158 | 1,158 |
Realized and Unrealized Gains (Losses) | 5 | (25) | (56) | (20) | |
Purchases | 58 | 5 | 404 | 17 | |
Sales | (11) | (12) | (40) | (52) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (205) | (41) | (205) | |
Net Transfers | 0 | (102) | 0 | (17) | |
Ending balance | 974 | 881 | 974 | 881 | 707 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 7 | (21) | (53) | (38) | |
Trading Assets | Investments | Principal Investments | |||||
Assets | |||||
Beginning balance | 743 | 829 | 486 | 835 | 835 |
Realized and Unrealized Gains (Losses) | 4 | (21) | (39) | (4) | |
Purchases | 33 | 5 | 403 | 15 | |
Sales | (11) | (12) | (40) | (46) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (205) | (41) | (205) | |
Net Transfers | 0 | (15) | 0 | (14) | |
Ending balance | 769 | 581 | 769 | 581 | 486 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 6 | (21) | (37) | (26) | |
Trading Assets | Investments | Other Investments | |||||
Assets | |||||
Beginning balance | 179 | 391 | 221 | 323 | 323 |
Realized and Unrealized Gains (Losses) | 1 | (4) | (17) | (16) | |
Purchases | 25 | 0 | 1 | 2 | |
Sales | 0 | 0 | 0 | (6) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Net Transfers | 0 | (87) | 0 | (3) | |
Ending balance | 205 | 300 | 205 | 300 | 221 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 1 | 0 | (16) | (12) | |
Trading Assets | Securities Received as Collateral | |||||
Assets | |||||
Beginning balance | 33 | 1 | 0 | 0 | |
Realized and Unrealized Gains (Losses) | 0 | 0 | 0 | ||
Purchases | 0 | 0 | 3 | ||
Sales | (30) | (1) | 0 | ||
Issuances | 0 | 0 | 0 | ||
Settlements | 0 | 0 | 0 | ||
Net Transfers | 0 | 0 | 0 | ||
Ending balance | 0 | 3 | 0 | 3 | 1 |
Unrealized Gains (Losses) for Level 3 Assets Outstanding | 0 | 0 | 0 | ||
Trading Liabilities | Corporate and Other Debt | |||||
Liabilities | |||||
Beginning balance | 11 | 46 | 4 | 121 | 121 |
Realized and Unrealized Gains (Losses) | 0 | 0 | 3 | (3) | |
Purchases | (6) | (21) | (10) | (12) | |
Sales | 29 | 25 | 14 | 20 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (29) | 0 | (39) | |
Net Transfers | (25) | (2) | (2) | (68) | |
Ending balance | 9 | 19 | 9 | 19 | 4 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | (1) | 0 | (3) | 3 | |
Trading Liabilities | Corporate and Other Debt | Corporate Bonds | |||||
Liabilities | |||||
Beginning balance | 6 | 23 | 0 | 78 | 78 |
Realized and Unrealized Gains (Losses) | 1 | 0 | 5 | 2 | |
Purchases | (5) | (21) | (7) | (12) | |
Sales | 29 | 15 | 10 | 14 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Net Transfers | (25) | (2) | (2) | (67) | |
Ending balance | 6 | 15 | 6 | 15 | 0 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | (1) | 0 | (5) | (2) | |
Trading Liabilities | Corporate and Other Debt | Lending Commitments | |||||
Liabilities | |||||
Beginning balance | 1 | 0 | 5 | 5 | |
Realized and Unrealized Gains (Losses) | (1) | 0 | 5 | ||
Purchases | 0 | 0 | 0 | ||
Sales | 0 | 0 | 0 | ||
Issuances | 0 | 0 | 0 | ||
Settlements | 0 | 0 | 0 | ||
Net Transfers | 0 | 0 | 0 | ||
Ending balance | 0 | 0 | 0 | 0 | 0 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 0 | 0 | 5 | ||
Trading Liabilities | Corporate and Other Debt | Other Debt | |||||
Liabilities | |||||
Beginning balance | 4 | 23 | 4 | 38 | 38 |
Realized and Unrealized Gains (Losses) | 0 | 0 | (2) | 0 | |
Purchases | (1) | 0 | (3) | 0 | |
Sales | 0 | 10 | 4 | 6 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (29) | 0 | (39) | |
Net Transfers | 0 | 0 | 0 | (1) | |
Ending balance | 3 | 4 | 3 | 4 | 4 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 0 | 0 | 2 | 0 | |
Trading Liabilities | Corporate Equities | |||||
Liabilities | |||||
Beginning balance | 31 | 50 | 17 | 45 | 45 |
Realized and Unrealized Gains (Losses) | 28 | (240) | 3 | (19) | |
Purchases | (33) | (49) | (22) | (75) | |
Sales | 5 | 2 | 18 | 25 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Net Transfers | (5) | 349 | 10 | 136 | |
Ending balance | 26 | 112 | 26 | 112 | 17 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | 0 | 240 | (3) | 20 | |
Trading Liabilities | Obligation to Return Securities Received as Collateral | |||||
Liabilities | |||||
Beginning balance | 1 | 33 | 1 | 33 | 33 |
Realized and Unrealized Gains (Losses) | 0 | 0 | 0 | 0 | |
Purchases | (1) | (30) | (1) | (30) | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Net Transfers | 0 | 0 | 0 | 0 | |
Ending balance | 0 | 3 | 0 | 3 | $ 1 |
Unrealized Gains (Losses) for Level 3 Liabilities Outstanding | $ 0 | $ 0 | $ 0 | $ 0 |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)$ / MWh | Dec. 31, 2015USD ($)$ / MWh | |
Residential Mortgage-backed Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 216 | $ 341 |
Residential Mortgage-backed Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Bond Price | 0.00% | 0.00% |
Residential Mortgage-backed Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Bond Price | 79.00% | 75.00% |
Residential Mortgage-backed Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 20.00% | 32.00% |
Commercial Mortgage-backed Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 51 | $ 72 |
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 | 7.00% | 9.00% |
Commercial Mortgage-backed Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 1.00% | 2.00% |
Asset-backed Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 88 | |
Asset-backed Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Bond Price | 45.00% | |
Asset-backed Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Bond Price | 55.00% | |
Asset-backed Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 46.00% | |
Corporate Bonds | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 276 | $ 267 |
Corporate Bonds | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Bond Price | 3.00% | 3.00% |
EBITDA Multiple | 5 | 7 |
Corporate Bonds | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Bond Price | 135.00% | 119.00% |
EBITDA Multiple | 10 | 9 |
Corporate Bonds | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 91.00% | 90.00% |
EBITDA Multiple | 7 | 8 |
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 | $ 109 | $ 430 |
Collateralized Debt and Loan Obligations | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Bond Price | 20.00% | 47.00% |
Collateralized Debt and Loan Obligations | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Bond Price | 95.00% | 103.00% |
Collateralized Debt and Loan Obligations | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 57.00% | 67.00% |
Collateralized Debt and Loan Obligations | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit Correlation | 29.00% | 39.00% |
Collateralized Debt and Loan Obligations | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit Correlation | 61.00% | 60.00% |
Collateralized Debt and Loan Obligations | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit Correlation | 42.00% | 49.00% |
Loans and Lending Commitments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 5,418 | $ 5,936 |
Loans and Lending Commitments | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Loan Price | 43.00% | 35.00% |
Loans and Lending Commitments | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Loan Price | 100.00% | 100.00% |
Loans and Lending Commitments | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Loan Price | 87.00% | 88.00% |
Loans and Lending Commitments | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 5.00% | 6.00% |
Capitalization Rate | 4.00% | 4.00% |
Loans and Lending Commitments | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 6.00% | 8.00% |
Capitalization Rate | 10.00% | 10.00% |
Loans and Lending Commitments | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 6.00% | 7.00% |
Capitalization Rate | 4.00% | 4.00% |
Loans and Lending Commitments | Corporate Loan Model | Minimum | ||
Fair Value Inputs | ||
Credit Spread | 4.82% | 2.50% |
Loans and Lending Commitments | Corporate Loan Model | Maximum | ||
Fair Value Inputs | ||
Credit Spread | 8.98% | 8.66% |
Loans and Lending Commitments | Corporate Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Credit Spread | 5.96% | 5.31% |
Loans and Lending Commitments | Margin Loan Model | Minimum | ||
Fair Value Inputs | ||
Discount Rate | 1.00% | 1.00% |
Credit Spread | 0.31% | 0.62% |
Volatility Skew | 20.00% | 14.00% |
Loans and Lending Commitments | Margin Loan Model | Maximum | ||
Fair Value Inputs | ||
Discount Rate | 8.00% | 4.00% |
Credit Spread | 1.02% | 4.99% |
Volatility Skew | 46.00% | 70.00% |
Loans and Lending Commitments | Margin Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Discount Rate | 3.00% | 2.00% |
Credit Spread | 0.86% | 1.45% |
Volatility Skew | 32.00% | 33.00% |
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%) |
Loans and Lending Commitments | Expected recovery | Minimum | ||
Fair Value Inputs | ||
Asset coverage | 47.00% | |
Loans and Lending Commitments | Expected recovery | Maximum | ||
Fair Value Inputs | ||
Asset coverage | 99.00% | |
Loans and Lending Commitments | Expected recovery | Weighted Average | ||
Fair Value Inputs | ||
Asset coverage | 90.00% | |
Other Debt | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 528 | $ 448 |
Other Debt | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable Bond Price | 7.00% | 8.00% |
Other Debt | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Loan Price | 3.00% | 4.00% |
Other Debt | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Loan Price | 84.00% | 84.00% |
Other Debt | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 7.00% | 8.00% |
Comparable Loan Price | 66.00% | 59.00% |
Other Debt | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Discount Rate | 10.00% | |
Other Debt | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Discount Rate | 13.00% | |
Other Debt | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Discount Rate | 12.00% | |
Other Debt | Margin Loan Model | ||
Fair Value Inputs | ||
Discount Rate | 1.00% | |
Other Debt | Margin Loan Model | Minimum | ||
Fair Value Inputs | ||
Discount Rate | 1.00% | |
Other Debt | Margin Loan Model | Maximum | ||
Fair Value Inputs | ||
Discount Rate | 2.00% | |
Other Debt | Margin Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Discount Rate | 2.00% | 1.00% |
Other Debt | Option Model | Minimum | ||
Fair Value Inputs | ||
At the Money Volatility | 16.00% | 16.00% |
Other Debt | Option Model | Maximum | ||
Fair Value Inputs | ||
At the Money Volatility | 53.00% | 53.00% |
Other Debt | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the Money Volatility | 53.00% | 53.00% |
Corporate Equities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 572 | $ 433 |
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% | |
Corporate Equities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Price | 80.00% | |
Corporate Equities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Equity Price | 100.00% | 100.00% |
Comparable Price | 72.00% | |
Corporate Equities | Market Approach | ||
Fair Value Inputs | ||
EBITDA Multiple | 9 | |
Corporate Equities | Market Approach | Weighted Average | ||
Fair Value Inputs | ||
EBITDA Multiple | 9 | |
Interest Rate Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ (235) | $ 260 |
Interest Rate Contracts | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Bond Price | 95.00% | |
Interest Rate Contracts | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable Bond Price | 100.00% | |
Interest Rate Contracts | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price | 96.00% | |
Interest Rate Contracts | Option Model | ||
Fair Value Inputs | ||
Interest rate curve | 1.00% | |
Inflation Volatility | 58.00% | |
Interest Rate Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Interest Rate Volatility Concentration Liquidity Multiple | 0 | |
Interest Rate Volatility Skew | 34.00% | 29.00% |
Interest Rate Quanto Correlation | (8.00%) | (8.00%) |
Interest Rate - Foreign Exchange Correlation | 25.00% | 25.00% |
Interest Rate - Inflation Correlation | (24.00%) | (41.00%) |
Callable Discount | 3.00% | |
Inflation Volatility | 0.00% | |
Interest Rate Curve Correlation | 19.00% | 24.00% |
Foreign exchange volatility skew | 0.00% | |
Interest Rate Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Interest Rate Volatility Concentration Liquidity Multiple | 3 | |
Interest Rate Volatility Skew | 143.00% | 82.00% |
Interest Rate Quanto Correlation | 35.00% | 36.00% |
Interest Rate - Foreign Exchange Correlation | 55.00% | 62.00% |
Interest Rate - Inflation Correlation | (44.00%) | (39.00%) |
Callable Discount | 25.00% | |
Inflation Volatility | 1.00% | |
Interest Rate Curve Correlation | 95.00% | 95.00% |
Foreign exchange volatility skew | 11.00% | |
Interest Rate Contracts | Option Model | Weighted Average | ||
Fair Value Inputs | ||
Interest Rate Volatility Concentration Liquidity Multiple | 2 | |
Interest Rate Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 78.00% | 43.00% |
Interest rate curve | 1.00% | |
Interest Rate Quanto Correlation | 2.00% | 5.00% |
Interest Rate - Foreign Exchange Correlation | 42.00% | 43.00% |
Interest Rate - Inflation Correlation | (34.00%) | (41.00%) |
Callable Discount | 14.00% | |
Inflation Volatility | 1.00% | 58.00% |
Interest Rate Curve Correlation | 71.00% | 60.00% |
Foreign exchange volatility skew | 4.00% | |
Interest Rate Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 77.00% | 40.00% |
Interest rate curve | 1.00% | |
Interest Rate Quanto Correlation | (7.00%) | (6.00%) |
Interest Rate - Foreign Exchange Correlation | 42.00% | 43.00% |
Interest Rate - Inflation Correlation | (33.00%) | (41.00%) |
Callable Discount | 14.00% | |
Inflation Volatility | 1.00% | 58.00% |
Interest Rate Curve Correlation | 76.00% | 69.00% |
Foreign exchange volatility skew | 6.00% | |
Credit Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ (1,114) | $ (844) |
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) | 85.00% | 75.00% |
Cash Synthetic Basis | 12.00% | 12.00% |
Credit Contracts | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Bond Price (Lower Higher) | 26.00% | 24.00% |
Cash Synthetic Basis | 10.00% | 9.00% |
Credit Contracts | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit Correlation | 29.00% | 39.00% |
Credit Contracts | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit Correlation | 92.00% | 97.00% |
Credit Contracts | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit Correlation | 49.00% | 57.00% |
Foreign Exchange Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ (1) | $ 141 |
Foreign Exchange Contracts | Option Model | ||
Fair Value Inputs | ||
Interest rate curve | 0.00% | 0.00% |
Foreign Exchange Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 34.00% | 29.00% |
Interest Rate - Foreign Exchange Correlation | 25.00% | 25.00% |
Callable Discount | 19.00% | |
Foreign Exchange Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 143.00% | 82.00% |
Interest Rate - Foreign Exchange Correlation | 55.00% | 62.00% |
Callable Discount | 94.00% | |
Foreign Exchange Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 78.00% | 43.00% |
Interest rate curve | 0.00% | 0.00% |
Interest Rate - Foreign Exchange Correlation | 42.00% | 43.00% |
Callable Discount | 73.00% | |
Foreign Exchange Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 77.00% | 40.00% |
Interest rate curve | 0.00% | 0.00% |
Interest Rate - Foreign Exchange Correlation | 42.00% | 43.00% |
Callable Discount | 81.00% | |
Equity Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ (1,473) | $ (2,031) |
Equity Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
At the Money Volatility | 6.00% | 16.00% |
Volatility Skew | (4.00%) | (3.00%) |
Equity - Equity Correlation | 40.00% | 40.00% |
Equity - Foreign Exchange Correlation | (70.00%) | (60.00%) |
Equity - Interest Rate Correlation | (7.00%) | (29.00%) |
Equity Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
At the Money Volatility | 81.00% | 65.00% |
Volatility Skew | 0.00% | 0.00% |
Equity - Equity Correlation | 98.00% | 99.00% |
Equity - Foreign Exchange Correlation | (31.00%) | (11.00%) |
Equity - Interest Rate Correlation | 50.00% | 50.00% |
Equity Contracts | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the Money Volatility | 35.00% | 32.00% |
Volatility Skew | (1.00%) | (1.00%) |
Equity - Equity Correlation | 79.00% | 71.00% |
Equity - Foreign Exchange Correlation | (42.00%) | (39.00%) |
Equity Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Equity - Interest Rate Correlation | 19.00% | 16.00% |
Equity Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Equity - Interest Rate Correlation | 12.00% | 8.00% |
Commodity Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 1,298 | $ 1,050 |
Commodity Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Forward Power Price (per megawatt hour) | $ / MWh | 2 | 3 |
Commodity Volatility | 6.00% | 10.00% |
Cross Commodity Correlation | 5.00% | 43.00% |
Commodity Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Forward Power Price (per megawatt hour) | $ / MWh | 95 | 91 |
Commodity Volatility | 90.00% | 92.00% |
Cross Commodity Correlation | 99.00% | 99.00% |
Commodity Contracts | Option Model | Weighted Average | ||
Fair Value Inputs | ||
Forward Power Price (per megawatt hour) | $ / MWh | 34 | 32 |
Commodity Volatility | 18.00% | 18.00% |
Cross Commodity Correlation | 93.00% | 93.00% |
Principal Investments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 769 | $ 486 |
Principal Investments | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable Equity Price | 43.00% | 43.00% |
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 | 82.00% | 81.00% |
Principal Investments | Discounted Cash Flow | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 16.00% | |
Principal Investments | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 13.00% | |
Exit Multiple | 8 | 8 |
Capitalization Rate | 5.00% | |
Equity Discount Rate | 20.00% | |
Principal Investments | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 16.00% | |
Exit Multiple | 23 | 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 | 15.00% | 16.00% |
Exit Multiple | 9 | 9 |
Capitalization Rate | 6.00% | |
Equity Discount Rate | 26.00% | |
Principal Investments | Market Approach | Minimum | ||
Fair Value Inputs | ||
EBITDA Multiple | 6 | 8 |
Forward capacity price | $ / MWh | 4 | 5 |
Principal Investments | Market Approach | Maximum | ||
Fair Value Inputs | ||
EBITDA Multiple | 25 | 20 |
Forward capacity price | $ / MWh | 9 | 9 |
Principal Investments | Market Approach | Weighted Average | ||
Fair Value Inputs | ||
EBITDA Multiple | 12 | 11 |
Forward capacity price | $ / MWh | 7 | 7 |
Other Investments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 205 | $ 221 |
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 | 9.00% | 10.00% |
Exit Multiple | 13 | 13 |
Other Investments | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Implied Weighted Average Cost of Capital | 9.00% | 10.00% |
Exit Multiple | 13 | 13 |
Other Investments | Market Approach | Minimum | ||
Fair Value Inputs | ||
EBITDA Multiple | 6 | 7 |
Other Investments | Market Approach | Maximum | ||
Fair Value Inputs | ||
EBITDA Multiple | 13 | 14 |
Other Investments | Market Approach | Weighted Average | ||
Fair Value Inputs | ||
EBITDA Multiple | 12 | 12 |
Securities Sold under agreements to repurchase | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 150 | $ 151 |
Securities Sold under agreements to repurchase | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Funding Spread | 1.17% | 0.86% |
Securities Sold under agreements to repurchase | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Funding Spread | 1.23% | 1.16% |
Securities Sold under agreements to repurchase | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Funding Spread | 1.20% | 1.05% |
Other Secured Financings | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 441 | $ 461 |
Other Secured Financings | Discounted Cash Flow | ||
Fair Value Inputs | ||
Discount Rate | 4.00% | |
Other Secured Financings | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Discount Rate | 4.00% | |
Funding Spread | 1.01% | 0.95% |
Other Secured Financings | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Discount Rate | 13.00% | |
Funding Spread | 1.26% | 1.13% |
Other Secured Financings | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Discount Rate | 4.00% | 4.00% |
Funding Spread | 1.14% | 1.04% |
Other Secured Financings | Option Model | ||
Fair Value Inputs | ||
Volatility Skew | (1.00%) | (1.00%) |
Other Secured Financings | Option Model | Weighted Average | ||
Fair Value Inputs | ||
Volatility Skew | (1.00%) | (1.00%) |
Long-term borrowings | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 1,929 | $ 1,987 |
Long-term borrowings | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable Equity Price | 100.00% | 100.00% |
Long-term borrowings | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable Equity Price | 100.00% | 100.00% |
Long-term borrowings | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit Correlation | 33.00% | 40.00% |
Long-term borrowings | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit Correlation | 61.00% | 60.00% |
Long-term borrowings | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit Correlation | 44.00% | 52.00% |
Long-term borrowings | Option Model | ||
Fair Value Inputs | ||
Interest Rate Volatility Skew | 50.00% | |
Interest Rate - Foreign Exchange Correlation | 53.00% | |
Equity volatility discount rate | 10.00% | |
Long-term borrowings | Option Model | Minimum | ||
Fair Value Inputs | ||
At the Money Volatility | 6.00% | 20.00% |
Interest Rate - Credit Spread Correlation | (52.00%) | |
Volatility Skew | (2.00%) | (1.00%) |
Equity - Equity Correlation | 50.00% | 40.00% |
Equity - Foreign Exchange Correlation | (50.00%) | (70.00%) |
Interest Rate Curve Correlation | 40.00% | |
Interest Rate - Equity Correlation | 7.00% | |
Long-term borrowings | Option Model | Maximum | ||
Fair Value Inputs | ||
At the Money Volatility | 48.00% | 50.00% |
Interest Rate - Credit Spread Correlation | 3.00% | |
Volatility Skew | 0.00% | 0.00% |
Equity - Equity Correlation | 98.00% | 97.00% |
Equity - Foreign Exchange Correlation | 11.00% | (11.00%) |
Interest Rate Curve Correlation | 87.00% | |
Interest Rate - Equity Correlation | 44.00% | |
Long-term borrowings | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the Money Volatility | 29.00% | 29.00% |
Interest Rate Volatility Skew | 50.00% | |
Volatility Skew | (1.00%) | (1.00%) |
Equity - Equity Correlation | 75.00% | 77.00% |
Equity - Foreign Exchange Correlation | (25.00%) | (39.00%) |
Equity volatility discount rate | 10.00% | |
Long-term borrowings | Option Model | Simple Average | ||
Fair Value Inputs | ||
Interest Rate - Credit Spread Correlation | (24.00%) | |
Interest Rate - Foreign Exchange Correlation | 53.00% | |
Interest Rate Curve Correlation | 73.00% | |
Interest Rate - Equity Correlation | 26.00% | |
Long-term borrowings | Option Model | Median | ||
Fair Value Inputs | ||
Interest Rate - Credit Spread Correlation | (23.00%) | |
Interest Rate - Foreign Exchange Correlation | 53.00% | |
Interest Rate Curve Correlation | 78.00% | |
Interest Rate - Equity Correlation | 26.00% |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value of Investments Measured at Net Asset Value) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | $ 3,246 | $ 3,843 |
Commitment | 510 | 670 |
Private Equity Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 1,698 | 1,917 |
Commitment | 395 | 538 |
Real Estate Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 1,228 | 1,337 |
Commitment | 111 | 128 |
Hedge Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 320 | 589 |
Commitment | $ 4 | $ 4 |
Fair Value Disclosures (Fair 50
Fair Value Disclosures (Fair Value of Equity Fund and Hedge Fund) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value, Investments | $ 3,246 | $ 3,843 |
Private Equity 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) | 911 | |
Fair value of investment to be liquidated (Over 10 years) | 659 | |
Fair Value, Investments | 1,698 | 1,917 |
Real Estate Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair value of investment to be liquidated (less than 5 years) | 94 | |
Fair value of investment to be liquidated (5-10 years) | 669 | |
Fair value of investment to be liquidated (Over 10 years) | 465 | |
Fair Value, Investments | 1,228 | 1,337 |
Hedge Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value, Investments | $ 320 | $ 589 |
Percent of investments redeemable at least quarterly | 55.00% | |
Percent of investments redeemable every six months | 20.00% | |
Percent of investments redeemable greater than six months | 19.00% |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Securities purchased under agreements to resell | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | $ 1 | $ 3 | $ 3 | $ 2 |
Deposits | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | (2) | 0 | (4) | 0 |
Short-term borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | (9) | (2) | 36 | (42) |
Securities Sold under agreements to repurchase | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | (6) | 4 | (17) | 1 |
Long-term borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | (1,419) | 14 | (2,523) | 819 |
Trading | Securities purchased under agreements to resell | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | (1) | (2) | (1) | (3) |
Trading | Deposits | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | (1) | 0 | (3) | 0 |
Trading | Short-term borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | (9) | (2) | 36 | (42) |
Trading | Securities Sold under agreements to repurchase | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | (3) | 6 | (12) | 4 |
Trading | Long-term borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | (1,289) | 152 | (2,254) | 1,089 |
Interest Income (Expense) | Securities purchased under agreements to resell | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | 2 | 5 | 4 | 5 |
Interest Income (Expense) | Deposits | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | (1) | 0 | (1) | 0 |
Interest Income (Expense) | Short-term borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | 0 | 0 | 0 | 0 |
Interest Income (Expense) | Securities Sold under agreements to repurchase | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | (3) | (2) | (5) | (3) |
Interest Income (Expense) | Long-term borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) due to changes in fair value | $ (130) | $ (138) | $ (269) | $ (270) |
Fair Value Disclosures (Short-t
Fair Value Disclosures (Short-term and Long-term Borrowings) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term and long-term borrowing, fair value | $ 38,315 | $ 34,693 |
Equity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term and long-term borrowing, fair value | 19,696 | 17,789 |
Interest Rates | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term and long-term borrowing, fair value | 16,728 | 14,255 |
Credit and Foreign Exchange Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term and long-term borrowing, fair value | 1,570 | 2,266 |
Commodities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term and long-term borrowing, fair value | $ 321 | $ 383 |
Fair Value Disclosures (Gains (
Fair Value Disclosures (Gains (Losses) Due to Changes in Instrument Specific Credit Risk) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Short-term and Long-term Borrowings | Trading revenues | ||||
Fair Value disclosure | ||||
Gains (losses) due to changes in instrument specific credit risk | $ 0 | $ 182 | $ 41 | $ 307 |
Short-term and Long-term Borrowings | OCI | ||||
Fair Value disclosure | ||||
Gains (losses) due to changes in instrument specific credit risk | 226 | 0 | 545 | 0 |
Securities sold under agreements to repurchase | Trading revenues | ||||
Fair Value disclosure | ||||
Gains (losses) due to changes in instrument specific credit risk | 0 | 0 | 0 | 0 |
Securities sold under agreements to repurchase | OCI | ||||
Fair Value disclosure | ||||
Gains (losses) due to changes in instrument specific credit risk | (1) | 0 | 3 | 0 |
Loans and other debt | Trading revenues | ||||
Fair Value disclosure | ||||
Gains (losses) due to changes in instrument specific credit risk | (14) | (6) | (114) | 71 |
Loans and other debt | OCI | ||||
Fair Value disclosure | ||||
Gains (losses) due to changes in instrument specific credit risk | 0 | 0 | 0 | 0 |
Lending Commitments | Trading revenues | ||||
Fair Value disclosure | ||||
Gains (losses) due to changes in instrument specific credit risk | 2 | (1) | 3 | 8 |
Lending Commitments | OCI | ||||
Fair Value disclosure | ||||
Gains (losses) due to changes in instrument specific credit risk | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Disclosures (Net Dif
Fair Value Disclosures (Net Difference between Contractual Principal Amount and Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures | ||
Loans and other debt | $ 15,046 | $ 14,095 |
Loans 90 or more days past due and/or on non-accrual status | 12,867 | 11,651 |
Short-term and long-term debt borrowings | 311 | 508 |
Aggregate fair value of loans in non-accrual status including all loans 90 or more days past due | 1,717 | 1,853 |
Amounts past due 90 days or greater (unpaid principal balance) | $ 514 | $ 885 |
Fair Value Disclosures (Asset55
Fair Value Disclosures (Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Assets | |||||
Loans | $ 77,283 | $ 77,283 | $ 72,559 | ||
Intangible assets | 2,833 | 2,833 | 2,984 | ||
Other assets | 51,526 | 51,526 | 51,087 | ||
Liabilities | |||||
Other liabilities and accrued expenses | 14,112 | 14,112 | 18,711 | ||
Liabilities | 750,498 | 750,498 | 711,281 | ||
Fair Value | |||||
Other assets - Other investments | 80,293 | 80,293 | 71,947 | ||
Intangible assets | 3 | 3 | $ 5 | ||
Nonrecurring | |||||
Assets | |||||
Loans | 6,700 | $ 3,244 | 6,700 | $ 3,244 | |
Other assets - Other investments | 82 | 0 | 82 | 0 | |
Other assets - Premises, equipment and software costs | 0 | 0 | 0 | 0 | |
Total carrying value | 6,782 | 3,244 | 6,782 | 3,244 | |
Liabilities | |||||
Other liabilities and accrued expenses | 402 | 283 | 402 | 283 | |
Liabilities | 402 | 283 | 402 | 283 | |
Nonrecurring | Loans | |||||
Fair Value | |||||
Gains (losses) in fair value adjustment | (34) | 47 | (131) | 8 | |
Nonrecurring | Other Investments | |||||
Fair Value | |||||
Gains (losses) in fair value adjustment | (38) | 0 | (40) | (2) | |
Nonrecurring | Premises, Equipment and Software Costs | |||||
Fair Value | |||||
Gains (losses) in fair value adjustment | (22) | (2) | (27) | (22) | |
Nonrecurring | Assets Total | |||||
Fair Value | |||||
Gains (losses) in fair value adjustment | (94) | 45 | (198) | (16) | |
Nonrecurring | Other liabilities and accrued expenses | |||||
Fair Value | |||||
Gains (losses) in fair value adjustment | 13 | (45) | 24 | (48) | |
Nonrecurring | Liabilities Total | |||||
Fair Value | |||||
Gains (losses) in fair value adjustment | 13 | (45) | 24 | (48) | |
Nonrecurring | Level 1 | |||||
Fair Value | |||||
Loans | 0 | 0 | 0 | 0 | |
Other assets - Other investments | 0 | 0 | 0 | 0 | |
Other assets - Premises, equipment and software costs | 0 | 0 | 0 | 0 | |
Total assets | 0 | 0 | 0 | 0 | |
Other Liabilities and accrued expenses | 0 | 0 | 0 | 0 | |
Total liabilities | 0 | 0 | 0 | 0 | |
Nonrecurring | Level 2 | |||||
Fair Value | |||||
Loans | 4,276 | 2,458 | 4,276 | 2,458 | |
Other assets - Other investments | 0 | 0 | 0 | 0 | |
Other assets - Premises, equipment and software costs | 0 | 0 | 0 | 0 | |
Total assets | 4,276 | 2,458 | 4,276 | 2,458 | |
Other Liabilities and accrued expenses | 331 | 244 | 331 | 244 | |
Total liabilities | 331 | 244 | 331 | 244 | |
Nonrecurring | Level 3 | |||||
Fair Value | |||||
Loans | 2,424 | 786 | 2,424 | 786 | |
Other assets - Other investments | 82 | 0 | 82 | 0 | |
Other assets - Premises, equipment and software costs | 0 | 0 | 0 | 0 | |
Total assets | 2,506 | 786 | 2,506 | 786 | |
Other Liabilities and accrued expenses | 71 | 39 | 71 | 39 | |
Total liabilities | $ 71 | $ 39 | $ 71 | $ 39 |
Fair Value Disclosures (Financi
Fair Value Disclosures (Financial Instruments Not Measured at FV) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Financial Assets: | |||
Cash and due from banks | $ 27,597 | $ 19,827 | $ 19,145 |
Interest bearing deposits with banks | 28,536 | 34,256 | $ 27,214 |
Securities purchased under agreements to resell | 97,589 | 87,657 | |
Securities borrowed | 131,281 | 142,416 | |
Customer and other receivables | 52,827 | 45,407 | |
Loans | 77,283 | 72,559 | |
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 32,771 | 31,469 | |
Financial Liabilities | |||
Deposits | 152,693 | 156,034 | |
Short-term borrowings | 880 | 2,173 | |
Securities sold under agreement to repurchase | 50,328 | 36,692 | |
Securities loaned | 17,241 | 19,358 | |
Other secured financings | 9,901 | 9,464 | |
Customer and other payables | 201,189 | 186,626 | |
Long-term borrowings | 163,492 | 153,768 | |
Additional Disclosures | |||
Lending commitment notional amount | 93,800 | 99,500 | |
lending commitment fair value liability | 1,841 | 2,172 | |
Carrying Value | |||
Financial Assets: | |||
Cash and due from banks | 27,597 | 19,827 | |
Interest bearing deposits with banks | 28,536 | 34,256 | |
Investment securities - HTM securities | 12,418 | 5,224 | |
Securities purchased under agreements to resell | 97,034 | 86,851 | |
Securities borrowed | 131,281 | 142,416 | |
Customer and other receivables | 48,910 | 41,676 | |
Loans | 93,165 | 85,759 | |
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 32,771 | 31,469 | |
Financial Liabilities | |||
Deposits | 152,598 | 155,909 | |
Short-term borrowings | 369 | 525 | |
Securities sold under agreement to repurchase | 49,629 | 36,009 | |
Securities loaned | 17,241 | 19,358 | |
Other secured financings | 6,980 | 6,610 | |
Customer and other payables | 197,978 | 183,895 | |
Long-term borrowings | 125,688 | 120,723 | |
Fair Value | |||
Financial Assets: | |||
Cash and due from banks | 27,597 | 19,827 | |
Interest bearing deposits with banks | 28,536 | 34,256 | |
Investment securities - HTM securities | 12,567 | 5,188 | |
Securities purchased under agreements to resell | 97,042 | 86,837 | |
Securities borrowed | 131,282 | 142,414 | |
Customer and other receivables | 48,815 | 41,576 | |
Loans | 94,151 | 86,423 | |
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 32,771 | 31,469 | |
Financial Liabilities | |||
Deposits | 152,788 | 156,163 | |
Short-term borrowings | 369 | 525 | |
Securities sold under agreement to repurchase | 49,692 | 36,060 | |
Securities loaned | 17,262 | 19,382 | |
Other secured financings | 6,991 | 6,610 | |
Customer and other payables | 197,978 | 183,895 | |
Long-term borrowings | 127,189 | 123,219 | |
Fair Value | Level 1 | |||
Financial Assets: | |||
Cash and due from banks | 27,597 | 19,827 | |
Interest bearing deposits with banks | 28,536 | 34,256 | |
Investment securities - HTM securities | 3,758 | 998 | |
Securities purchased under agreements to resell | 0 | 0 | |
Securities borrowed | 0 | 0 | |
Customer and other receivables | 0 | 0 | |
Loans | 0 | 0 | |
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 32,771 | 31,469 | |
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 | |
Investment securities - HTM securities | 8,809 | 4,190 | |
Securities purchased under agreements to resell | 95,140 | 86,186 | |
Securities borrowed | 131,156 | 142,266 | |
Customer and other receivables | 44,033 | 36,752 | |
Loans | 25,289 | 19,241 | |
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 0 | 0 | |
Financial Liabilities | |||
Deposits | 152,788 | 156,163 | |
Short-term borrowings | 369 | 525 | |
Securities sold under agreement to repurchase | 48,033 | 34,150 | |
Securities loaned | 17,262 | 19,192 | |
Other secured financings | 5,596 | 5,333 | |
Customer and other payables | 197,978 | 183,895 | |
Long-term borrowings | 127,189 | 123,219 | |
Additional Disclosures | |||
lending commitment fair value liability | 1,610 | 1,791 | |
Fair Value | Level 3 | |||
Financial Assets: | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits with banks | 0 | 0 | |
Investment securities - HTM securities | 0 | 0 | |
Securities purchased under agreements to resell | 1,902 | 651 | |
Securities borrowed | 126 | 148 | |
Customer and other receivables | 4,782 | 4,824 | |
Loans | 68,862 | 67,182 | |
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 0 | 0 | |
Financial Liabilities | |||
Deposits | 0 | 0 | |
Short-term borrowings | 0 | 0 | |
Securities sold under agreement to repurchase | 1,659 | 1,910 | |
Securities loaned | 0 | 190 | |
Other secured financings | 1,395 | 1,277 | |
Customer and other payables | 0 | 0 | |
Long-term borrowings | 0 | 0 | |
Additional Disclosures | |||
lending commitment fair value liability | $ 231 | $ 381 |
Derivative Instruments and He57
Derivative Instruments and Hedging Activities (Fair Value, Notional and Offsetting of Derivative Assets and Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative Assets | ||
Total derivatives | $ 614,594 | $ 471,578 |
Cash collateral netting | (60,447) | (51,372) |
Counterparty netting | (515,989) | (391,593) |
Net amounts presented in the Consolidated Statements of Financial Condition | 38,158 | 28,613 |
Amounts not offset against financial instruments collateral | (12,011) | (9,190) |
Amounts not offset against other cash collateral | (23) | (9) |
Net exposure | 26,124 | 19,414 |
Derivative Liabilities | ||
Total derivatives | 593,642 | 457,350 |
Cash collateral netting | (40,330) | (36,283) |
Counterparty netting | (515,989) | (391,593) |
Net amounts presented in the Consolidated Statements of Financial Condition | 37,323 | 29,474 |
Amounts not offset against financial instruments collateral | (12,023) | (5,789) |
Amounts not offset against other cash collateral | (51) | (5) |
Net exposure | 25,249 | 23,680 |
Derivatives, Notional Amount | ||
Derivative assets | 15,501,469 | 14,749,210 |
Derivative liabilities | 14,195,125 | 14,074,223 |
Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 414,639 | 340,573 |
Cash collateral netting | (60,352) | (50,335) |
Counterparty netting | (321,553) | (265,707) |
Net amounts presented in the Consolidated Statements of Financial Condition | 32,734 | 24,531 |
Amounts not offset against financial instruments collateral | (12,011) | (9,190) |
Amounts not offset against other cash collateral | (23) | (9) |
Net exposure | 20,700 | 15,332 |
Derivative Liabilities | ||
Total derivatives | 393,389 | 324,671 |
Cash collateral netting | (38,378) | (33,332) |
Counterparty netting | (321,553) | (265,707) |
Net amounts presented in the Consolidated Statements of Financial Condition | 33,458 | 25,632 |
Amounts not offset against financial instruments collateral | (11,509) | (5,384) |
Amounts not offset against other cash collateral | (10) | (5) |
Net exposure | 21,939 | 20,243 |
Derivatives, Notional Amount | ||
Derivative assets | 6,677,620 | 7,273,921 |
Derivative liabilities | 6,406,054 | 6,864,262 |
Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 175,277 | 106,623 |
Cash collateral netting | (95) | (1,037) |
Counterparty netting | (173,222) | (104,294) |
Net amounts presented in the Consolidated Statements of Financial Condition | 1,960 | 1,292 |
Amounts not offset against financial instruments collateral | 0 | 0 |
Amounts not offset against other cash collateral | 0 | 0 |
Net exposure | 1,960 | 1,292 |
Derivative Liabilities | ||
Total derivatives | 175,454 | 108,063 |
Cash collateral netting | (1,952) | (2,951) |
Counterparty netting | (173,222) | (104,294) |
Net amounts presented in the Consolidated Statements of Financial Condition | 280 | 818 |
Amounts not offset against financial instruments collateral | 0 | 0 |
Amounts not offset against other cash collateral | (41) | 0 |
Net exposure | 239 | 818 |
Derivatives, Notional Amount | ||
Derivative assets | 6,823,193 | 5,936,757 |
Derivative liabilities | 6,690,856 | 5,837,356 |
Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 24,678 | 24,382 |
Cash collateral netting | 0 | 0 |
Counterparty netting | (21,214) | (21,592) |
Net amounts presented in the Consolidated Statements of Financial Condition | 3,464 | 2,790 |
Amounts not offset against financial instruments collateral | 0 | 0 |
Amounts not offset against other cash collateral | 0 | 0 |
Net exposure | 3,464 | 2,790 |
Derivative Liabilities | ||
Total derivatives | 24,799 | 24,616 |
Cash collateral netting | 0 | 0 |
Counterparty netting | (21,214) | (21,592) |
Net amounts presented in the Consolidated Statements of Financial Condition | 3,585 | 3,024 |
Amounts not offset against financial instruments collateral | (514) | (405) |
Amounts not offset against other cash collateral | 0 | 0 |
Net exposure | 3,071 | 2,619 |
Derivatives, Notional Amount | ||
Derivative assets | 2,000,656 | 1,538,532 |
Derivative liabilities | 1,098,215 | 1,372,605 |
Designated as Accounting Hedges | ||
Derivative Assets | ||
Total derivatives | 7,211 | 4,434 |
Derivative Liabilities | ||
Total derivatives | 515 | 332 |
Derivatives, Notional Amount | ||
Derivative assets | 95,102 | 78,524 |
Derivative liabilities | 9,069 | 18,488 |
Designated as Accounting Hedges | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 3,413 | 2,991 |
Derivative Liabilities | ||
Total derivatives | 492 | 76 |
Derivatives, Notional Amount | ||
Derivative assets | 36,798 | 42,995 |
Derivative liabilities | 8,348 | 8,164 |
Designated as Accounting Hedges | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 3,798 | 1,443 |
Derivative Liabilities | ||
Total derivatives | 23 | 256 |
Derivatives, Notional Amount | ||
Derivative assets | 58,304 | 35,529 |
Derivative liabilities | 721 | 10,324 |
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 | 7,123 | 4,267 |
Derivative Liabilities | ||
Total derivatives | 0 | 270 |
Derivatives, Notional Amount | ||
Derivative assets | 92,248 | 72,361 |
Derivative liabilities | 32 | 13,429 |
Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 3,325 | 2,825 |
Derivative Liabilities | ||
Total derivatives | 0 | 20 |
Derivatives, Notional Amount | ||
Derivative assets | 34,003 | 36,999 |
Derivative liabilities | 0 | 3,560 |
Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 3,798 | 1,442 |
Derivative Liabilities | ||
Total derivatives | 0 | 250 |
Derivatives, Notional Amount | ||
Derivative assets | 58,245 | 35,362 |
Derivative liabilities | 32 | 9,869 |
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 | 88 | 167 |
Derivative Liabilities | ||
Total derivatives | 515 | 62 |
Derivatives, Notional Amount | ||
Derivative assets | 2,854 | 6,163 |
Derivative liabilities | 9,037 | 5,059 |
Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 88 | 166 |
Derivative Liabilities | ||
Total derivatives | 492 | 56 |
Derivatives, Notional Amount | ||
Derivative assets | 2,795 | 5,996 |
Derivative liabilities | 8,348 | 4,604 |
Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 0 | 1 |
Derivative Liabilities | ||
Total derivatives | 23 | 6 |
Derivatives, Notional Amount | ||
Derivative assets | 59 | 167 |
Derivative liabilities | 689 | 455 |
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 | 607,383 | 467,144 |
Derivative Liabilities | ||
Total derivatives | 593,127 | 457,018 |
Derivatives, Notional Amount | ||
Derivative assets | 15,406,367 | 14,670,686 |
Derivative liabilities | 14,186,056 | 14,055,735 |
Not Designated as Accounting Hedges | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 411,226 | 337,582 |
Derivative Liabilities | ||
Total derivatives | 392,897 | 324,595 |
Derivatives, Notional Amount | ||
Derivative assets | 6,640,822 | 7,230,926 |
Derivative liabilities | 6,397,706 | 6,856,098 |
Not Designated as Accounting Hedges | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 171,479 | 105,180 |
Derivative Liabilities | ||
Total derivatives | 175,431 | 107,807 |
Derivatives, Notional Amount | ||
Derivative assets | 6,764,889 | 5,901,228 |
Derivative liabilities | 6,690,135 | 5,827,032 |
Not Designated as Accounting Hedges | Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 24,678 | 24,382 |
Derivative Liabilities | ||
Total derivatives | 24,799 | 24,616 |
Derivatives, Notional Amount | ||
Derivative assets | 2,000,656 | 1,538,532 |
Derivative liabilities | 1,098,215 | 1,372,605 |
Not Designated as Accounting Hedges | Interest Rate Contracts | ||
Derivative Assets | ||
Total derivatives | 456,451 | 321,777 |
Derivative Liabilities | ||
Total derivatives | 437,766 | 307,139 |
Derivatives, Notional Amount | ||
Derivative assets | 12,192,069 | 11,315,172 |
Derivative liabilities | 10,974,102 | 10,790,071 |
Not Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 287,757 | 220,289 |
Derivative Liabilities | ||
Total derivatives | 265,270 | 203,004 |
Derivatives, Notional Amount | ||
Derivative assets | 3,940,102 | 4,348,002 |
Derivative liabilities | 3,654,941 | 4,030,039 |
Not Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 168,366 | 101,276 |
Derivative Liabilities | ||
Total derivatives | 172,084 | 103,852 |
Derivatives, Notional Amount | ||
Derivative assets | 6,615,199 | 5,748,525 |
Derivative liabilities | 6,558,339 | 5,682,322 |
Not Designated as Accounting Hedges | Interest Rate Contracts | Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 328 | 212 |
Derivative Liabilities | ||
Total derivatives | 412 | 283 |
Derivatives, Notional Amount | ||
Derivative assets | 1,636,768 | 1,218,645 |
Derivative liabilities | 760,822 | 1,077,710 |
Not Designated as Accounting Hedges | Credit Contracts | ||
Derivative Assets | ||
Total derivatives | 16,461 | 22,919 |
Derivative Liabilities | ||
Total derivatives | 17,821 | 23,665 |
Derivatives, Notional Amount | ||
Derivative assets | 567,515 | 725,032 |
Derivative liabilities | 605,635 | 693,415 |
Not Designated as Accounting Hedges | Credit Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 13,734 | 19,310 |
Derivative Liabilities | ||
Total derivatives | 14,888 | 19,942 |
Derivatives, Notional Amount | ||
Derivative assets | 434,478 | 585,731 |
Derivative liabilities | 489,656 | 562,027 |
Not Designated as Accounting Hedges | Credit Contracts | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 2,727 | 3,609 |
Derivative Liabilities | ||
Total derivatives | 2,933 | 3,723 |
Derivatives, Notional Amount | ||
Derivative assets | 133,037 | 139,301 |
Derivative liabilities | 115,979 | 131,388 |
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 | 76,417 | 64,788 |
Derivative Liabilities | ||
Total derivatives | 78,110 | 65,288 |
Derivatives, Notional Amount | ||
Derivative assets | 1,889,300 | 1,928,407 |
Derivative liabilities | 1,863,900 | 1,883,992 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 75,891 | 64,438 |
Derivative Liabilities | ||
Total derivatives | 77,614 | 65,034 |
Derivatives, Notional Amount | ||
Derivative assets | 1,851,368 | 1,907,290 |
Derivative liabilities | 1,837,572 | 1,868,015 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | ||
Derivative Assets | ||
Total derivatives | 386 | 295 |
Derivative Liabilities | ||
Total derivatives | 414 | 232 |
Derivatives, Notional Amount | ||
Derivative assets | 16,653 | 13,402 |
Derivative liabilities | 15,817 | 13,322 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Exchange Traded | ||
Derivative Assets | ||
Total derivatives | 140 | 55 |
Derivative Liabilities | ||
Total derivatives | 82 | 22 |
Derivatives, Notional Amount | ||
Derivative assets | 21,279 | 7,715 |
Derivative liabilities | 10,511 | 2,655 |
Not Designated as Accounting Hedges | Equity Contracts | ||
Derivative Assets | ||
Total derivatives | 42,529 | 40,289 |
Derivative Liabilities | ||
Total derivatives | 46,549 | 46,132 |
Derivatives, Notional Amount | ||
Derivative assets | 600,492 | 546,629 |
Derivative liabilities | 604,611 | 562,000 |
Not Designated as Accounting Hedges | Equity Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 22,043 | 20,212 |
Derivative Liabilities | ||
Total derivatives | 25,633 | 25,708 |
Derivatives, Notional Amount | ||
Derivative assets | 341,039 | 316,770 |
Derivative liabilities | 342,625 | 332,734 |
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 | 20,486 | 20,077 |
Derivative Liabilities | ||
Total derivatives | 20,916 | 20,424 |
Derivatives, Notional Amount | ||
Derivative assets | 259,453 | 229,859 |
Derivative liabilities | 261,986 | 229,266 |
Not Designated as Accounting Hedges | Commodity Contracts | ||
Derivative Assets | ||
Total derivatives | 15,509 | 17,152 |
Derivative Liabilities | ||
Total derivatives | 12,779 | 14,751 |
Derivatives, Notional Amount | ||
Derivative assets | 155,856 | 149,762 |
Derivative liabilities | 132,991 | 122,143 |
Not Designated as Accounting Hedges | Commodity Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 11,785 | 13,114 |
Derivative Liabilities | ||
Total derivatives | 9,390 | 10,864 |
Derivatives, Notional Amount | ||
Derivative assets | 72,700 | 67,449 |
Derivative liabilities | 68,095 | 59,169 |
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 | 3,724 | 4,038 |
Derivative Liabilities | ||
Total derivatives | 3,389 | 3,887 |
Derivatives, Notional Amount | ||
Derivative assets | 83,156 | 82,313 |
Derivative liabilities | 64,896 | 62,974 |
Not Designated as Accounting Hedges | Other Contracts | ||
Derivative Assets | ||
Total derivatives | 16 | 219 |
Derivative Liabilities | ||
Total derivatives | 102 | 43 |
Derivatives, Notional Amount | ||
Derivative assets | 1,135 | 5,684 |
Derivative liabilities | 4,817 | 4,114 |
Not Designated as Accounting Hedges | Other Contracts | Bilateral OTC | ||
Derivative Assets | ||
Total derivatives | 16 | 219 |
Derivative Liabilities | ||
Total derivatives | 102 | 43 |
Derivatives, Notional Amount | ||
Derivative assets | 1,135 | 5,684 |
Derivative liabilities | 4,817 | 4,114 |
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 |
Derivative Instruments and He58
Derivative Instruments and Hedging Activities (Gains or Losses on Derivative Instruments, Related Hedge Items and Hedge Ineffectiveness) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Designated as Accounting Hedges | Interest Expense | ||||
Derivatives | ||||
Gains (Losses) on Fair Value Hedges Recognized | $ (24) | $ (38) | $ (163) | $ (123) |
Designated as Accounting Hedges | Interest Expense | Derivatives | ||||
Derivatives | ||||
Gains (Losses) on Fair Value Hedges Recognized | 969 | (1,899) | 3,119 | (1,141) |
Designated as Accounting Hedges | Interest Expense | Borrowings | ||||
Derivatives | ||||
Gains (Losses) on Fair Value Hedges Recognized | (993) | 1,861 | (3,282) | 1,018 |
Not Designated as Accounting Hedges | ||||
Derivatives | ||||
Gains (Losses) Recognized in Income | 2,746 | 2,791 | 4,811 | 6,316 |
Debt valuation adjustment | 0 | 182 | 0 | 307 |
Total | 2,746 | 2,973 | 4,811 | 6,623 |
Not Designated as Accounting Hedges | Interest Rate Contracts | ||||
Derivatives | ||||
Gains (Losses) Recognized in Income | 320 | 355 | 626 | 925 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | ||||
Derivatives | ||||
Gains (Losses) Recognized in Income | 362 | 170 | 599 | 515 |
Not Designated as Accounting Hedges | Equity security and index contracts | ||||
Derivatives | ||||
Gains (Losses) Recognized in Income | 1,615 | 1,746 | 2,945 | 3,341 |
Not Designated as Accounting Hedges | Commodity and other contracts | ||||
Derivatives | ||||
Gains (Losses) Recognized in Income | 20 | 140 | (124) | 816 |
Not Designated as Accounting Hedges | Credit Contracts | ||||
Derivatives | ||||
Gains (Losses) Recognized in Income | 429 | 380 | 765 | 719 |
Net Investment Hedges | Designated as Accounting Hedges | Foreign Exchange Contracts | ||||
Derivatives | ||||
Gain (Losses) Recognized in OCI (effective portion) | (112) | (81) | (336) | 181 |
Gain (loss) recognized in interest income related to amounts excluded from hedge effectiveness testing | $ (19) | $ (36) | $ (39) | $ (80) |
Derivative Instruments and He59
Derivative Instruments and Hedging Activities (Fair Value of OTC Derivatives in a Gain Position) (Details) - OTC - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Credit Derivatives | ||
Years to maturity, less than 1 | $ 24,088 | $ 20,236 |
Years to maturity, 1 - 3 | 16,499 | 17,840 |
Years to maturity, 3 - 5 | 12,080 | 10,582 |
Years to maturity, over 5 | 65,875 | 49,174 |
Cross-maturity and cash collateral netting | (83,871) | (72,018) |
Net exposure post-cash collateral | 34,671 | 25,814 |
Net exposure post-collateral | 22,660 | 16,624 |
AAA | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 137 | 203 |
Years to maturity, 1 - 3 | 396 | 453 |
Years to maturity, 3 - 5 | 1,312 | 827 |
Years to maturity, over 5 | 4,360 | 3,665 |
Cross-maturity and cash collateral netting | (4,953) | (4,319) |
Net exposure post-cash collateral | 1,252 | 829 |
Net exposure post-collateral | 1,175 | 715 |
AA | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 3,156 | 2,689 |
Years to maturity, 1 - 3 | 1,502 | 2,000 |
Years to maturity, 3 - 5 | 1,814 | 1,876 |
Years to maturity, over 5 | 12,226 | 9,223 |
Cross-maturity and cash collateral netting | (12,717) | (10,981) |
Net exposure post-cash collateral | 5,981 | 4,807 |
Net exposure post-collateral | 3,771 | 2,361 |
A | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 11,078 | 9,748 |
Years to maturity, 1 - 3 | 7,607 | 8,191 |
Years to maturity, 3 - 5 | 5,336 | 4,774 |
Years to maturity, over 5 | 28,058 | 20,918 |
Cross-maturity and cash collateral netting | (38,694) | (34,916) |
Net exposure post-cash collateral | 13,385 | 8,715 |
Net exposure post-collateral | 7,784 | 5,448 |
BBB | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 5,794 | 3,614 |
Years to maturity, 1 - 3 | 4,489 | 4,863 |
Years to maturity, 3 - 5 | 2,622 | 1,948 |
Years to maturity, over 5 | 15,861 | 11,801 |
Cross-maturity and cash collateral netting | (19,993) | (15,086) |
Net exposure post-cash collateral | 8,773 | 7,140 |
Net exposure post-collateral | 6,808 | 4,934 |
Non-investment grade | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 3,923 | 3,982 |
Years to maturity, 1 - 3 | 2,505 | 2,333 |
Years to maturity, 3 - 5 | 996 | 1,157 |
Years to maturity, over 5 | 5,370 | 3,567 |
Cross-maturity and cash collateral netting | (7,514) | (6,716) |
Net exposure post-cash collateral | 5,280 | 4,323 |
Net exposure post-collateral | $ 3,122 | $ 3,166 |
Derivative Instruments and He60
Derivative Instruments and Hedging Activities (Credit Risk Related Contingencies) (Details) $ in Millions | Jun. 30, 2016USD ($) |
Derivatives | |
Aggregate fair value of derivative contracts that contain credit-risk-related contingent features that are in a net liability position | $ 28,999 |
Posted collateral | 24,217 |
Bilateral arrangement | |
Derivatives | |
Amount of additional collateral or termination payments that could be called by counterparties | 1,481 |
One-notch Downgrade | |
Derivatives | |
Amount of additional collateral or termination payments that could be called by counterparties | 1,075 |
Two-notch Downgrade | |
Derivatives | |
Amount of additional collateral or termination payments that could be called by counterparties | $ 1,233 |
Derivative Instruments and He61
Derivative Instruments and Hedging Activities (Credit Derivatives and Other Credit Derivatives) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Protection Sold | ||
Credit Derivatives | ||
Derivative notional amount | $ 567,634 | $ 689,979 |
Credit risk derivative (assets) / liability, fair value | 379 | 761 |
Protection Sold | Less than 1 Year | ||
Credit Derivatives | ||
Derivative notional amount | 211,171 | 208,713 |
Protection Sold | 1 - 3 Years | ||
Credit Derivatives | ||
Derivative notional amount | 200,984 | 298,137 |
Protection Sold | 3 - 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 123,957 | 149,173 |
Protection Sold | Over 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 31,522 | 33,956 |
Protection Sold | Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 567,290 | 689,519 |
Credit risk derivative (assets) / liability, fair value | 396 | 785 |
Protection Sold | Credit Default Swaps | Less than 1 Year | ||
Credit Derivatives | ||
Derivative notional amount | 211,128 | 208,694 |
Protection Sold | Credit Default Swaps | 1 - 3 Years | ||
Credit Derivatives | ||
Derivative notional amount | 200,959 | 298,030 |
Protection Sold | Credit Default Swaps | 3 - 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 123,957 | 149,171 |
Protection Sold | Credit Default Swaps | Over 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 31,246 | 33,624 |
Protection Sold | Single Name Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 347,624 | 420,806 |
Credit risk derivative (assets) / liability, fair value | 463 | 1,980 |
Protection Sold | Single Name Credit Default Swaps | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 247,107 | 299,670 |
Credit risk derivative (assets) / liability, fair value | (1,079) | (1,831) |
Protection Sold | Single Name Credit Default Swaps | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 100,517 | 121,136 |
Credit risk derivative (assets) / liability, fair value | 1,542 | 3,811 |
Protection Sold | Single Name Credit Default Swaps | Less than 1 Year | ||
Credit Derivatives | ||
Derivative notional amount | 135,104 | 122,597 |
Protection Sold | Single Name Credit Default Swaps | Less than 1 Year | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 92,734 | 84,543 |
Protection Sold | Single Name Credit Default Swaps | Less than 1 Year | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 42,370 | 38,054 |
Protection Sold | Single Name Credit Default Swaps | 1 - 3 Years | ||
Credit Derivatives | ||
Derivative notional amount | 132,696 | 194,728 |
Protection Sold | Single Name Credit Default Swaps | 1 - 3 Years | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 94,348 | 138,467 |
Protection Sold | Single Name Credit Default Swaps | 1 - 3 Years | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 38,348 | 56,261 |
Protection Sold | Single Name Credit Default Swaps | 3 - 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 67,309 | 88,186 |
Protection Sold | Single Name Credit Default Swaps | 3 - 5 Years | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 48,928 | 63,754 |
Protection Sold | Single Name Credit Default Swaps | 3 - 5 Years | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 18,381 | 24,432 |
Protection Sold | Single Name Credit Default Swaps | Over 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 12,515 | 15,295 |
Protection Sold | Single Name Credit Default Swaps | Over 5 Years | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 11,097 | 12,906 |
Protection Sold | Single Name Credit Default Swaps | Over 5 Years | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 1,418 | 2,389 |
Protection Sold | Total Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 219,666 | 268,713 |
Credit risk derivative (assets) / liability, fair value | (67) | (1,195) |
Protection Sold | Total Index and Basket Credit Default Swaps | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 111,005 | 143,742 |
Credit risk derivative (assets) / liability, fair value | (1,222) | (1,977) |
Protection Sold | Total Index and Basket Credit Default Swaps | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 108,661 | 124,971 |
Credit risk derivative (assets) / liability, fair value | 1,155 | 782 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 Year | ||
Credit Derivatives | ||
Derivative notional amount | 76,024 | 86,097 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 Year | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 24,110 | 33,507 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 Year | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 51,914 | 52,590 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 Years | ||
Credit Derivatives | ||
Derivative notional amount | 68,263 | 103,302 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 Years | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 39,948 | 59,403 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 Years | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 28,315 | 43,899 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 56,648 | 60,985 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 Years | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 42,887 | 45,505 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 Years | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 13,761 | 15,480 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 18,731 | 18,329 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 Years | Investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 4,060 | 5,327 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 Years | Non-investment grade | ||
Credit Derivatives | ||
Derivative notional amount | 14,671 | 13,002 |
Protection Sold | Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 176,009 | 199,688 |
Credit risk derivative (assets) / liability, fair value | 726 | (102) |
Protection Sold | Tranched Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 43,657 | 69,025 |
Credit risk derivative (assets) / liability, fair value | (793) | (1,093) |
Protection Sold | Single Name, and Non-tranched Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 521,900 | 619,500 |
Protection Sold | Other Credit Contracts | ||
Credit Derivatives | ||
Derivative notional amount | 344 | 460 |
Credit risk derivative (assets) / liability, fair value | (17) | (24) |
Protection Sold | Other Credit Contracts | Less than 1 Year | ||
Credit Derivatives | ||
Derivative notional amount | 43 | 19 |
Protection Sold | Other Credit Contracts | 1 - 3 Years | ||
Credit Derivatives | ||
Derivative notional amount | 25 | 107 |
Protection Sold | Other Credit Contracts | 3 - 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 0 | 2 |
Protection Sold | Other Credit Contracts | Over 5 Years | ||
Credit Derivatives | ||
Derivative notional amount | 276 | 332 |
Protection Purchased | Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 605,860 | 728,928 |
Credit risk derivative (assets) / liability, fair value | 964 | (39) |
Protection Purchased | Single Name Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 338,727 | 405,361 |
Credit risk derivative (assets) / liability, fair value | (453) | (2,079) |
Protection Purchased | Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 143,734 | 173,936 |
Credit risk derivative (assets) / liability, fair value | (771) | (82) |
Protection Purchased | Tranched Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | 123,399 | 149,631 |
Credit risk derivative (assets) / liability, fair value | 2,188 | 2,122 |
Protection Purchased | Single Name, and Non-tranched Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Derivative notional amount | $ 480,100 | $ 577,700 |
Investment Securities (Schedule
Investment Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Investment securities | ||
Total Investment securities - Amortized Cost | $ 79,802 | $ 72,493 |
Total Investment securities, Gross unrealized gains | 684 | 44 |
Total Investment securities, Gross unrealized losses | 193 | 590 |
Total Investment securities, fair value | 80,293 | 71,947 |
AFS securities | ||
Total AFS securities, fair value | $ 67,726 | $ 66,759 |
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 | ||
Available-for-sale Securities, Amortized Cost, total | $ 67,384 | $ 67,269 |
Total AFS securities, Gross unrealized gains | 535 | 43 |
Total AFS securities, Gross unrealized loss | 193 | 553 |
Total AFS securities, fair value | 67,726 | 66,759 |
AFS Debt Securities | ||
AFS securities | ||
AFS debt securities, Amortized Cost, total | 67,369 | 67,254 |
AFS debt securities, Gross unrealized gains | 535 | 43 |
AFS debt securities, Gross unrealized losses | 185 | 545 |
AFS debt securities, Fair value | 67,719 | 66,752 |
AFS Debt Securities | U.S. Government and Agency Securities | ||
AFS securities | ||
AFS debt securities, Amortized Cost, total | 53,144 | 52,658 |
AFS debt securities, Gross unrealized gains | 421 | 34 |
AFS debt securities, Gross unrealized losses | 30 | 299 |
AFS debt securities, Fair value | 53,535 | 52,393 |
AFS Debt Securities | U.S. Treasury Securities | ||
AFS securities | ||
AFS debt securities, Amortized Cost, total | 29,923 | 31,555 |
AFS debt securities, Gross unrealized gains | 213 | 5 |
AFS debt securities, Gross unrealized losses | 8 | 143 |
AFS debt securities, Fair value | 30,128 | 31,417 |
AFS Debt Securities | U.S. Agency Securities | ||
AFS securities | ||
AFS debt securities, Amortized Cost, total | 23,221 | 21,103 |
AFS debt securities, Gross unrealized gains | 208 | 29 |
AFS debt securities, Gross unrealized losses | 22 | 156 |
AFS debt securities, Fair value | 23,407 | 20,976 |
AFS Debt Securities | Corporate and Other Debt | ||
AFS securities | ||
AFS debt securities, Amortized Cost, total | 14,225 | 14,596 |
AFS debt securities, Gross unrealized gains | 114 | 9 |
AFS debt securities, Gross unrealized losses | 155 | 246 |
AFS debt securities, Fair value | 14,184 | 14,359 |
AFS Debt Securities | Agency | ||
AFS securities | ||
AFS debt securities, Amortized Cost, total | 2,139 | 1,906 |
AFS debt securities, Gross unrealized gains | 5 | 1 |
AFS debt securities, Gross unrealized losses | 31 | 60 |
AFS debt securities, Fair value | 2,113 | 1,847 |
AFS Debt Securities | Non-Agency | ||
AFS securities | ||
AFS debt securities, Amortized Cost, total | 2,159 | 2,220 |
AFS debt securities, Gross unrealized gains | 36 | 3 |
AFS debt securities, Gross unrealized losses | 10 | 25 |
AFS debt securities, Fair value | 2,185 | 2,198 |
AFS Debt Securities | Auto Loan Asset-backed Securities | ||
AFS securities | ||
AFS debt securities, Amortized Cost, total | 2,071 | 2,556 |
AFS debt securities, Gross unrealized gains | 7 | 0 |
AFS debt securities, Gross unrealized losses | 0 | 9 |
AFS debt securities, Fair value | 2,078 | 2,547 |
AFS Debt Securities | Corporate Bonds | ||
AFS securities | ||
AFS debt securities, Amortized Cost, total | 4,009 | 3,780 |
AFS debt securities, Gross unrealized gains | 66 | 5 |
AFS debt securities, Gross unrealized losses | 2 | 30 |
AFS debt securities, Fair value | 4,073 | 3,755 |
AFS Debt Securities | Collateralized Loan Obligations | ||
AFS securities | ||
AFS debt securities, Amortized Cost, total | 502 | 502 |
AFS debt securities, Gross unrealized gains | 0 | 0 |
AFS debt securities, Gross unrealized losses | 7 | 7 |
AFS debt securities, Fair value | 495 | 495 |
AFS Debt Securities | FFELP Student Loan Asset-backed Securities | ||
AFS securities | ||
AFS debt securities, Amortized Cost, total | 3,345 | 3,632 |
AFS debt securities, Gross unrealized gains | 0 | 0 |
AFS debt securities, Gross unrealized losses | 105 | 115 |
AFS debt securities, Fair value | 3,240 | 3,517 |
AFS Equity Securities | ||
AFS securities | ||
AFS equity securities, Amortized cost, total | 15 | 15 |
AFS equity securities, Gross unrealized gains | 0 | 0 |
AFS equity securities, Gross unrealized losses | 8 | 8 |
AFS equity securities, Fair value | 7 | 7 |
HTM securities | ||
HTM securities: | ||
HTM securities, amortized cost, total | 12,418 | 5,224 |
HTM - Gross Unrealized Gains | 149 | 1 |
HTM - Gross Unrealized Losses | 0 | 37 |
HTM - Fair Value | 12,567 | 5,188 |
HTM securities | U.S. Treasury Securities | ||
HTM securities: | ||
HTM securities, amortized cost, total | 3,705 | 1,001 |
HTM - Gross Unrealized Gains | 53 | 0 |
HTM - Gross Unrealized Losses | 0 | 3 |
HTM - Fair Value | 3,758 | 998 |
HTM securities | U.S. Agency Securities | ||
HTM securities: | ||
HTM securities, amortized cost, total | 8,713 | 4,223 |
HTM - Gross Unrealized Gains | 96 | 1 |
HTM - Gross Unrealized Losses | 0 | 34 |
HTM - Fair Value | $ 8,809 | $ 4,190 |
Investment Securities (Schedu63
Investment Securities (Schedule of Investment Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Investment Securities | ||
Investment securities - Fair Value, Less than 12 Months | $ 9,923 | $ 54,185 |
Investment securities - Fair Value, 12 Months or Longer | 6,541 | 6,021 |
Investment securities - Fair Value, Total | 16,464 | 60,206 |
Investment securities - Gross Unrealized Loss, Less than 12 Months | 39 | 481 |
Investment Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Loss | 154 | 109 |
Investment securities - Gross Unrealized Loss, Total | 193 | 590 |
AFS securities | ||
Investment Securities | ||
AFS - Fair Value, Less than 12 Months | 9,851 | 49,610 |
AFS - Fair Value, 12 Months or Longer | 6,541 | 6,021 |
AFS - Fair Value, Total | 16,392 | 55,631 |
AFS - Gross Unrealized Losses, Less than 12 Months | 39 | 444 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 154 | 109 |
AFS - Gross Unrealized Losses, Total | 193 | 553 |
AFS Debt Securities | ||
Investment Securities | ||
AFS - Fair Value, Less than 12 Months | 9,844 | 49,603 |
AFS - Fair Value, 12 Months or Longer | 6,541 | 6,021 |
AFS - Fair Value, Total | 16,385 | 55,624 |
AFS - Gross Unrealized Losses, Less than 12 Months | 31 | 436 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 154 | 109 |
AFS - Gross Unrealized Losses, Total | 185 | 545 |
AFS Debt Securities | U.S. Government and Agency Securities | ||
Investment Securities | ||
AFS - Fair Value, Less than 12 Months | 8,759 | 40,236 |
AFS - Fair Value, 12 Months or Longer | 1,225 | 2,816 |
AFS - Fair Value, Total | 9,984 | 43,052 |
AFS - Gross Unrealized Losses, Less than 12 Months | 18 | 261 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 12 | 38 |
AFS - Gross Unrealized Losses, Total | 30 | 299 |
AFS Debt Securities | U.S. Treasury Securities | ||
Investment Securities | ||
AFS - Fair Value, Less than 12 Months | 3,028 | 25,994 |
AFS - Fair Value, 12 Months or Longer | 0 | 2,177 |
AFS - Fair Value, Total | 3,028 | 28,171 |
AFS - Gross Unrealized Losses, Less than 12 Months | 8 | 126 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 0 | 17 |
AFS - Gross Unrealized Losses, Total | 8 | 143 |
AFS Debt Securities | U.S. Agency Securities | ||
Investment Securities | ||
AFS - Fair Value, Less than 12 Months | 5,731 | 14,242 |
AFS - Fair Value, 12 Months or Longer | 1,225 | 639 |
AFS - Fair Value, Total | 6,956 | 14,881 |
AFS - Gross Unrealized Losses, Less than 12 Months | 10 | 135 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 12 | 21 |
AFS - Gross Unrealized Losses, Total | 22 | 156 |
AFS Debt Securities | Corporate and Other Debt | ||
Investment Securities | ||
AFS - Fair Value, Less than 12 Months | 1,085 | 9,367 |
AFS - Fair Value, 12 Months or Longer | 5,316 | 3,205 |
AFS - Fair Value, Total | 6,401 | 12,572 |
AFS - Gross Unrealized Losses, Less than 12 Months | 13 | 175 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 142 | 71 |
AFS - Gross Unrealized Losses, Total | 155 | 246 |
AFS Debt Securities | Agency | ||
Investment Securities | ||
AFS - Fair Value, Less than 12 Months | 31 | 1,185 |
AFS - Fair Value, 12 Months or Longer | 1,181 | 422 |
AFS - Fair Value, Total | 1,212 | 1,607 |
AFS - Gross Unrealized Losses, Less than 12 Months | 0 | 44 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 31 | 16 |
AFS - Gross Unrealized Losses, Total | 31 | 60 |
AFS Debt Securities | Non-Agency | ||
Investment Securities | ||
AFS - Fair Value, Less than 12 Months | 216 | 1,479 |
AFS - Fair Value, 12 Months or Longer | 625 | 305 |
AFS - Fair Value, Total | 841 | 1,784 |
AFS - Gross Unrealized Losses, Less than 12 Months | 0 | 21 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 10 | 4 |
AFS - Gross Unrealized Losses, Total | 10 | 25 |
AFS Debt Securities | Auto Loan Asset-backed Securities | ||
Investment Securities | ||
AFS - Fair Value, Less than 12 Months | 83 | 1,644 |
AFS - Fair Value, 12 Months or Longer | 204 | 881 |
AFS - Fair Value, Total | 287 | 2,525 |
AFS - Gross Unrealized Losses, Less than 12 Months | 0 | 7 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 0 | 2 |
AFS - Gross Unrealized Losses, Total | 0 | 9 |
AFS Debt Securities | Corporate Bonds | ||
Investment Securities | ||
AFS - Fair Value, Less than 12 Months | 172 | 2,149 |
AFS - Fair Value, 12 Months or Longer | 175 | 525 |
AFS - Fair Value, Total | 347 | 2,674 |
AFS - Gross Unrealized Losses, Less than 12 Months | 1 | 19 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 1 | 11 |
AFS - Gross Unrealized Losses, Total | 2 | 30 |
AFS Debt Securities | Collateralized Loan Obligations | ||
Investment Securities | ||
AFS - Fair Value, Less than 12 Months | 0 | 352 |
AFS - Fair Value, 12 Months or Longer | 494 | 143 |
AFS - Fair Value, Total | 494 | 495 |
AFS - Gross Unrealized Losses, Less than 12 Months | 0 | 5 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 7 | 2 |
AFS - Gross Unrealized Losses, Total | 7 | 7 |
AFS Debt Securities | FFELP Student Loan Asset-backed Securities | ||
Investment Securities | ||
AFS - Fair Value, Less than 12 Months | 583 | 2,558 |
AFS - Fair Value, 12 Months or Longer | 2,637 | 929 |
AFS - Fair Value, Total | 3,220 | 3,487 |
AFS - Gross Unrealized Losses, Less than 12 Months | 12 | 79 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 93 | 36 |
AFS - Gross Unrealized Losses, Total | 105 | 115 |
AFS Equity Securities | ||
Investment Securities | ||
AFS - Fair Value, Less than 12 Months | 7 | 7 |
AFS - Fair Value, 12 Months or Longer | 0 | 0 |
AFS - Fair Value, Total | 7 | 7 |
AFS - Gross Unrealized Losses, Less than 12 Months | 8 | 8 |
AFS - Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
AFS - Gross Unrealized Losses, Total | 8 | 8 |
HTM securities | ||
Investment Securities | ||
HTM - Fair Value, Less than 12 Months | 72 | 4,575 |
HTM - Fair Value, 12 Months or Longer | 0 | 0 |
HTM - Fair Value, Total | 72 | 4,575 |
HTM - Gross Unrealized Losses, Less than 12 Months | 0 | 37 |
HTM - Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
HTM - Gross Unrealized Losses, Total | 0 | 37 |
HTM securities | U.S. Treasury Securities | ||
Investment 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 | ||
Investment Securities | ||
HTM - Fair Value, Less than 12 Months | 72 | 3,677 |
HTM - Fair Value, 12 Months or Longer | 0 | 0 |
HTM - Fair Value, Total | 72 | 3,677 |
HTM - Gross Unrealized Losses, Less than 12 Months | 0 | 34 |
HTM - Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
HTM - Gross Unrealized Losses, Total | $ 0 | $ 34 |
Investment Securities (Schedu64
Investment Securities (Schedule of Amortized Cost and Fair Value of Available for Sale Debt Securities by Contractual Date) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Amortized Cost | ||
Total Investment securities - Amortized Cost | $ 79,802 | $ 72,493 |
Fair Value | ||
Available-for-sale Securities, Total | 67,726 | 66,759 |
Investment securities, fair value | $ 80,293 | 71,947 |
Annualized Average Yield | ||
Total Investment securities, Annualized average yield | 1.40% | |
AFS securities | ||
Amortized Cost | ||
Available-for-sale Securities, Amortized Cost, total | $ 67,384 | 67,269 |
Fair Value | ||
Available-for-sale Securities, Total | $ 67,726 | 66,759 |
Annualized Average Yield | ||
Annualized average yield, total | 1.30% | |
AFS Debt Securities | ||
Amortized Cost | ||
AFS debt securities, Amortized Cost, total | $ 67,369 | 67,254 |
Fair Value | ||
AFS debt securities, Fair value, total | $ 67,719 | 66,752 |
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 | $ 53,144 | 52,658 |
Fair Value | ||
AFS debt securities, Fair value, total | $ 53,535 | 52,393 |
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 | $ 2,698 | |
AFS debt securities, amortized cost, after 1 year through 5 years | 22,137 | |
AFS debt securities, Amortized cost, after 5 years through 10 years | 5,088 | |
AFS debt securities, Amortized Cost, total | 29,923 | 31,555 |
Fair Value | ||
AFS debt securities, due within 1 year | 2,702 | |
AFS debt securities, after 1 year through 5 years | 22,317 | |
AFS debt securities, after 5 years through 10 years | 5,109 | |
AFS debt securities, Fair value, total | $ 30,128 | 31,417 |
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 | 1.40% | |
AFS Debt Securities | U.S. Agency Securities | ||
Amortized Cost | ||
AFS debt securities, amortized cost, due within 1 year | $ 200 | |
AFS debt securities, amortized cost, after 1 year through 5 years | 2,629 | |
AFS debt securities, Amortized cost, after 5 years through 10 years | 1,327 | |
AFS debt securities, amortized cost, after 10 years | 19,065 | |
AFS debt securities, Amortized Cost, total | 23,221 | 21,103 |
Fair Value | ||
AFS debt securities, due within 1 year | 200 | |
AFS debt securities, after 1 year through 5 years | 2,632 | |
AFS debt securities, after 5 years through 10 years | 1,357 | |
AFS debt securities, after 10 years | 19,218 | |
AFS debt securities, Fair value, total | $ 23,407 | 20,976 |
Annualized Average Yield | ||
Annualized average yield, due within 1 year | 0.70% | |
Annualized average yield, after 1 year through 5 years | 0.50% | |
Annualized average yield, after 5 years through 10 years | 1.90% | |
Annualized average yield, after 10 years | 1.60% | |
AFS Debt Securities | Corporate and Other Debt | ||
Amortized Cost | ||
AFS debt securities, Amortized Cost, total | $ 14,225 | 14,596 |
Fair Value | ||
AFS debt securities, Fair value, total | $ 14,184 | 14,359 |
Annualized Average Yield | ||
Annualized average yield, total | 1.50% | |
AFS Debt Securities | Agency | ||
Amortized Cost | ||
AFS debt securities, amortized cost, due within 1 year | $ 73 | |
AFS debt securities, amortized cost, after 1 year through 5 years | 404 | |
AFS debt securities, Amortized cost, after 5 years through 10 years | 639 | |
AFS debt securities, amortized cost, after 10 years | 1,023 | |
AFS debt securities, Amortized Cost, total | 2,139 | 1,906 |
Fair Value | ||
AFS debt securities, due within 1 year | 74 | |
AFS debt securities, after 1 year through 5 years | 406 | |
AFS debt securities, after 5 years through 10 years | 641 | |
AFS debt securities, after 10 years | 992 | |
AFS debt securities, Fair value, total | $ 2,113 | 1,847 |
Annualized Average Yield | ||
Annualized average yield, due within 1 year | 0.80% | |
Annualized average yield, after 1 year through 5 years | 1.00% | |
Annualized average yield, after 5 years through 10 years | 1.30% | |
Annualized average yield, after 10 years | 1.60% | |
AFS Debt Securities | Non-Agency | ||
Amortized Cost | ||
AFS debt securities, amortized cost, after 10 years | $ 2,159 | |
AFS debt securities, Amortized Cost, total | 2,159 | 2,220 |
Fair Value | ||
AFS debt securities, after 10 years | 2,185 | |
AFS debt securities, Fair value, total | $ 2,185 | 2,198 |
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 | $ 4 | |
AFS debt securities, amortized cost, after 1 year through 5 years | 1,902 | |
AFS debt securities, Amortized cost, after 5 years through 10 years | 165 | |
AFS debt securities, Amortized Cost, total | 2,071 | 2,556 |
Fair Value | ||
AFS debt securities, due within 1 year | 4 | |
AFS debt securities, after 1 year through 5 years | 1,909 | |
AFS debt securities, after 5 years through 10 years | 165 | |
AFS debt securities, Fair value, total | $ 2,078 | 2,547 |
Annualized Average Yield | ||
Annualized average yield, due within 1 year | 0.90% | |
Annualized average yield, after 1 year through 5 years | 1.30% | |
Annualized average yield, after 5 years through 10 years | 1.60% | |
AFS Debt Securities | Corporate Bonds | ||
Amortized Cost | ||
AFS debt securities, amortized cost, due within 1 year | $ 638 | |
AFS debt securities, amortized cost, after 1 year through 5 years | 2,655 | |
AFS debt securities, Amortized cost, after 5 years through 10 years | 716 | |
AFS debt securities, Amortized Cost, total | 4,009 | 3,780 |
Fair Value | ||
AFS debt securities, due within 1 year | 640 | |
AFS debt securities, after 1 year through 5 years | 2,695 | |
AFS debt securities, after 5 years through 10 years | 738 | |
AFS debt securities, Fair value, total | $ 4,073 | 3,755 |
Annualized Average Yield | ||
Annualized average yield, due within 1 year | 1.30% | |
Annualized average yield, after 1 year through 5 years | 1.80% | |
Annualized average yield, after 5 years through 10 years | 2.60% | |
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 | 502 |
Fair Value | ||
AFS debt securities, after 5 years through 10 years | 495 | |
AFS debt securities, Fair value, total | $ 495 | 495 |
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 | $ 59 | |
AFS debt securities, Amortized cost, after 5 years through 10 years | 922 | |
AFS debt securities, amortized cost, after 10 years | 2,364 | |
AFS debt securities, Amortized Cost, total | 3,345 | 3,632 |
Fair Value | ||
AFS debt securities, after 1 year through 5 years | 59 | |
AFS debt securities, after 5 years through 10 years | 897 | |
AFS debt securities, after 10 years | 2,284 | |
AFS debt securities, Fair value, total | $ 3,240 | 3,517 |
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 | 7 |
Annualized Average Yield | ||
Annualized average yield, total | 0.00% | |
HTM securities | ||
Amortized Cost | ||
HTM securities, amortized cost, total | $ 12,418 | 5,224 |
Fair Value | ||
HTM securities, Fair value, total | $ 12,567 | 5,188 |
Annualized Average Yield | ||
HTM securities, Annualized average yield, total | 1.80% | |
HTM securities | U.S. Treasury Securities | ||
Amortized Cost | ||
HTM securities, amortized cost, due within 1 year | $ 200 | |
HTM securities, amortized cost, after 1 year through 5 years | 1,408 | |
HTM securities, amortized cost, after 5 year through 10 years | 1,693 | |
HTM securities, amortized cost, after 10 years | 404 | |
HTM securities, amortized cost, total | 3,705 | 1,001 |
Fair Value | ||
HTM securities, due within 1 year | 201 | |
HTM securities, after 1 year through 5 years | 1,422 | |
HTM securities, after 5 years through 10 years | 1,719 | |
HTM securities, after 10 years | 416 | |
HTM securities, Fair value, total | $ 3,758 | 998 |
Annualized Average Yield | ||
HTM securities, Annualized average yield, due within 1 year | 0.70% | |
HTM securities, Annualized average yield, after 1 years through 5 years | 1.10% | |
HTM securities, Annualized average yield, after 5 years through 10 years | 1.70% | |
HTM securities, Annualized average yield, after 10 year | 2.50% | |
HTM securities | U.S. Agency Securities | ||
Amortized Cost | ||
HTM securities, amortized cost, after 10 years | $ 8,713 | |
HTM securities, amortized cost, total | 8,713 | 4,223 |
Fair Value | ||
HTM securities, after 10 years | 8,809 | |
HTM securities, Fair value, total | $ 8,809 | $ 4,190 |
Annualized Average Yield | ||
HTM securities, Annualized average yield, after 10 year | 2.00% |
Investment Securities (Schedu65
Investment Securities (Schedule of Gross Realized Gains and Gross Realized (Losses) on Sales of AFS Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Available-for-sale Securities [Abstract] | ||||
Gross realized gains | $ 71 | $ 40 | $ 85 | $ 69 |
Gross realized (losses) | (1) | (10) | (3) | (14) |
Total | $ 70 | $ 30 | $ 82 | $ 55 |
Collateralized Transactions (Na
Collateralized Transactions (Narrative) (Details) - USD ($) $ in Billions | Jun. 30, 2016 | Dec. 31, 2015 |
Collateralized Agreements | ||
Customer margin loans outstanding | $ 23.2 | $ 25.3 |
Fair value of financial instruments received as collateral where the Company is permitted to sell or repledge the securities | 528 | 522.6 |
Fair value of financial instruments received as collateral where the Company has sold or repledged | 407 | 398.1 |
Trading assets | $ 41.1 | $ 35 |
Collateralized Transactions (Ba
Collateralized Transactions (Balance Sheet Offsetting) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Securities Purchased under Agreements to Resell | ||
Gross Amounts | $ 162,813 | $ 135,714 |
Amounts Offset | (65,224) | (48,057) |
Net Amounts Presented | 97,589 | 87,657 |
Amounts Not Offset | (91,746) | (84,752) |
Net Exposure | 5,843 | 2,905 |
Securities Borrowed | ||
Gross Amounts | 138,436 | 147,445 |
Amounts Offset | (7,155) | (5,029) |
Net Amounts Presented | 131,281 | 142,416 |
Amounts Not Offset | (124,773) | (134,250) |
Net Exposure | 6,508 | 8,166 |
Securities Sold under Agreements to Repurchase | ||
Gross Amounts | 115,552 | 84,749 |
Amounts Offset | (65,224) | (48,057) |
Net Amounts presented | 50,328 | 36,692 |
Amounts Not Offset | (42,541) | (31,604) |
Net Exposure | 7,787 | 5,088 |
Securities Loaned | ||
Gross Amounts | 24,396 | 24,387 |
Amounts Offset | (7,155) | (5,029) |
Net Amounts Presented | 17,241 | 19,358 |
Amounts Not Offset | (16,724) | (18,881) |
Net Exposure | 517 | 477 |
Securities purchased under agreements to resell, which are either not subject to master netting agreements or collateral agreements, or are subject to such agreements but the entity has not determined the agreements to be legally enforceable | 5,500 | 2,600 |
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 | 3,700 | 3,000 |
Securities sold under agreements to repurchase, which are either not subject to master netting agreements or collateral agreements, or are subject to such agreements but the entity has not determined the agreements to be legally enforceable | 7,200 | $ 4,900 |
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 | $ 400 |
Collateralized Transactions (Se
Collateralized Transactions (Secured Financing Transactions) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | $ 115,552 | $ 84,749 |
Securities loaned | 24,396 | 24,387 |
Gross amount of secured financing included in the above offseting disclosure | 139,948 | 109,136 |
Obligation to return securities received as collateral | 18,738 | 19,316 |
Total | 158,686 | 128,452 |
U.S. Government and Agency Securities | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 39,920 | 36,609 |
Securities loaned | 182 | 0 |
State And Municipal Securities | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 2,104 | 173 |
Other Sovereign Government Obligations | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 42,329 | 24,820 |
Securities loaned | 7,454 | 7,336 |
Asset-backed Securities | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 745 | 441 |
Corporate and Other Debt | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 8,638 | 4,020 |
Securities loaned | 123 | 71 |
Obligation to return securities received as collateral | 0 | 3 |
Corporate Equities | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 21,515 | 18,473 |
Securities loaned | 16,602 | 16,972 |
Obligation to return securities received as collateral | 18,737 | 19,313 |
Other | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 301 | 213 |
Securities loaned | 35 | 8 |
Obligation to return securities received as collateral | 1 | 0 |
Overnight and Open | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 38,732 | 20,410 |
Securities loaned | 13,085 | 12,247 |
Gross amount of secured financing included in the above offseting disclosure | 51,817 | 32,657 |
Obligation to return securities received as collateral | 18,738 | 19,316 |
Total | 70,555 | 51,973 |
Less than 30 days | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 30,586 | 25,245 |
Securities loaned | 50 | 478 |
Gross amount of secured financing included in the above offseting disclosure | 30,636 | 25,723 |
Obligation to return securities received as collateral | 0 | 0 |
Total | 30,636 | 25,723 |
30-90 days | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 20,309 | 13,221 |
Securities loaned | 1,336 | 2,156 |
Gross amount of secured financing included in the above offseting disclosure | 21,645 | 15,377 |
Obligation to return securities received as collateral | 0 | 0 |
Total | 21,645 | 15,377 |
Over 90 days | ||
Securities Financing Transaction | ||
Securities sold under agreements to repurchase | 25,925 | 25,873 |
Securities loaned | 9,925 | 9,506 |
Gross amount of secured financing included in the above offseting disclosure | 35,850 | 35,379 |
Obligation to return securities received as collateral | 0 | 0 |
Total | $ 35,850 | $ 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 | Jun. 30, 2016 | Dec. 31, 2015 |
Collateralized Transactions | ||
Securities | $ 23,710 | $ 14,390 |
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 32,771 | 31,469 |
Total | $ 56,481 | $ 45,859 |
Loans and Allowance for Credi70
Loans and Allowance for Credit Losses (Outstanding Loans and Credit Quality) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Loans Held for Investments | ||||
Loans held for investments, gross | $ 77,606 | $ 72,784 | $ 66,593 | |
Allowance for loan losses | (323) | (225) | (169) | $ (149) |
Loans held for investment, net | 77,283 | 72,559 | ||
Loans Held for Sale | ||||
Loans held for sale, gross | 15,882 | 13,200 | ||
Loans held for sale, net | 15,882 | 13,200 | ||
Total Loans | ||||
Total loans, gross | 93,488 | 85,984 | ||
Allowance for loan losses | (323) | (225) | ||
Total loans, net | 93,165 | 85,759 | ||
Total loans, net of allowance, made to foreign borrowers | 8,104 | 9,789 | ||
Loans at fixed interest rate | 10,102 | 8,471 | ||
Loans at floating or adjustable interest rate | 83,063 | 77,288 | ||
Pass | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 75,338 | 71,235 | ||
Special Mention | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 763 | 300 | ||
Substandard | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 1,349 | 1,237 | ||
Doubtful | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 156 | 12 | ||
Loss | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 0 | 0 | ||
Corporate | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 24,186 | 23,554 | 22,500 | |
Allowance for loan losses | (252) | (166) | (135) | (118) |
Loans Held for Sale | ||||
Loans held for sale, gross | 14,448 | 11,924 | ||
Total Loans | ||||
Total loans, gross | 38,634 | 35,478 | ||
Corporate | Pass | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 22,183 | 22,040 | ||
Corporate | Special Mention | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 539 | 300 | ||
Corporate | Substandard | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 1,308 | 1,202 | ||
Corporate | Doubtful | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 156 | 12 | ||
Corporate | Loss | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 0 | 0 | ||
Consumer | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 23,337 | 21,528 | 19,464 | |
Allowance for loan losses | (4) | (5) | (2) | (2) |
Loans Held for Sale | ||||
Loans held for sale, gross | 0 | 0 | ||
Total Loans | ||||
Total loans, gross | 23,337 | 21,528 | ||
Consumer | Pass | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 23,337 | 21,528 | ||
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 | ||
Consumer | Loss | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 0 | 0 | ||
Residential Real Estate | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 22,668 | 20,863 | 18,241 | |
Allowance for loan losses | (18) | (17) | (9) | (8) |
Loans Held for Sale | ||||
Loans held for sale, gross | 84 | 104 | ||
Total Loans | ||||
Total loans, gross | 22,752 | 20,967 | ||
Residential Real Estate | Pass | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 22,627 | 20,828 | ||
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 | 41 | 35 | ||
Residential Real Estate | Doubtful | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 0 | 0 | ||
Residential Real Estate | Loss | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 0 | 0 | ||
Wholesale Real Estate | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 7,415 | 6,839 | 6,388 | |
Allowance for loan losses | (49) | (37) | $ (23) | $ (21) |
Loans Held for Sale | ||||
Loans held for sale, gross | 1,350 | 1,172 | ||
Total Loans | ||||
Total loans, gross | 8,765 | 8,011 | ||
Wholesale Real Estate | Pass | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 7,191 | 6,839 | ||
Wholesale Real Estate | Special Mention | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | 224 | 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 | ||
Wholesale Real Estate | Loss | ||||
Loans Held for Investments | ||||
Loans held for investments, gross | $ 0 | $ 0 |
Loans and Allowance for Credi71
Loans and Allowance for Credit Losses (Impaired Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Impaired Loans | ||||
Impaired loans with allowance | $ 244 | $ 39 | ||
Impaired loans without allowance | 368 | 106 | ||
Impaired loans unpaid principal balance | 625 | 149 | ||
Impaired loans | 612 | 145 | ||
Past due 90 days loans and on nonaccrual | 21 | 22 | ||
Allowance for loan losses | 323 | 225 | $ 169 | $ 149 |
Troubled Debt Restructuring | ||||
Allowance of TDR | 12.1 | 5.1 | ||
Americas | ||||
Impaired Loans | ||||
Impaired loans | 589 | 108 | ||
Past due 90 days loans and on nonaccrual | 21 | 22 | ||
Allowance for loan losses | 277 | 183 | ||
EMEA | ||||
Impaired Loans | ||||
Impaired loans | 23 | 12 | ||
Past due 90 days loans and on nonaccrual | 0 | 0 | ||
Allowance for loan losses | 43 | 34 | ||
Asia-Pacific | ||||
Impaired Loans | ||||
Impaired loans | 0 | 25 | ||
Past due 90 days loans and on nonaccrual | 0 | 0 | ||
Allowance for loan losses | 3 | 8 | ||
Loans and other debt | ||||
Troubled Debt Restructuring | ||||
Troubled Debt Restructuring | 137.2 | 44 | ||
Lending commitments | ||||
Troubled Debt Restructuring | ||||
Troubled Debt Restructuring | $ 18.7 | $ 34.8 |
Loans and Allowance for Credi72
Loans and Allowance for Credit Losses (Loans and Lending-related Commitments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Allowance for loan losses rollforward | |||||
Beginning balance | $ 225 | $ 149 | |||
Gross charge-offs | 0 | (1) | |||
Gross recoveries | 0 | 1 | |||
Net recoveries/ (charge-offs) | 0 | 0 | |||
Provision for (release of) loan losses | $ 16 | $ 4 | 128 | 30 | |
Other | (30) | (10) | |||
Ending balance | 323 | 169 | 323 | 169 | |
Loans, additional information | |||||
Allowance, inherent | 218 | 164 | 218 | 164 | |
Allowance, specific | 105 | 5 | 105 | 5 | |
Loans, inherent | 76,994 | 66,545 | 76,994 | 66,545 | |
Loans, specific | 612 | 48 | 612 | 48 | |
Total Loans | 77,606 | 66,593 | 77,606 | 66,593 | $ 72,784 |
Allowance for lending-related commitments rollforward | |||||
Beginning balance | 185 | 149 | |||
Provision for lending-related commitments | (13) | (29) | 3 | 8 | |
Other | (1) | ||||
Ending balance | 187 | 157 | 187 | 157 | |
Lending-related commitments, additional information | |||||
Allowance, inherent | 179 | 157 | 179 | 157 | |
Allowance, specific | 8 | 0 | 8 | 0 | |
Lending-related commitments, inherent | 69,207 | 70,330 | 69,207 | 70,330 | |
Lending-related commitments, specific | 64 | 0 | 64 | 0 | |
Total lending-related commitments evaluated for impairment | 69,271 | 70,330 | 69,271 | 70,330 | |
Corporate | |||||
Allowance for loan losses rollforward | |||||
Beginning balance | 166 | 118 | |||
Gross charge-offs | 0 | 0 | |||
Gross recoveries | 0 | 1 | |||
Net recoveries/ (charge-offs) | 0 | 1 | |||
Provision for (release of) loan losses | 116 | 26 | |||
Other | (30) | (10) | |||
Ending balance | 252 | 135 | 252 | 135 | |
Loans, additional information | |||||
Allowance, inherent | 147 | 130 | 147 | 130 | |
Allowance, specific | 105 | 5 | 105 | 5 | |
Loans, inherent | 23,604 | 22,479 | 23,604 | 22,479 | |
Loans, specific | 582 | 21 | 582 | 21 | |
Total Loans | 24,186 | 22,500 | 24,186 | 22,500 | 23,554 |
Allowance for lending-related commitments rollforward | |||||
Beginning balance | 180 | 147 | |||
Provision for lending-related commitments | 1 | 6 | |||
Other | 0 | ||||
Ending balance | 181 | 153 | 181 | 153 | |
Lending-related commitments, additional information | |||||
Allowance, inherent | 173 | 153 | 173 | 153 | |
Allowance, specific | 8 | 0 | 8 | 0 | |
Lending-related commitments, inherent | 63,120 | 65,183 | 63,120 | 65,183 | |
Lending-related commitments, specific | 64 | 0 | 64 | 0 | |
Total lending-related commitments evaluated for impairment | 63,184 | 65,183 | 63,184 | 65,183 | |
Consumer | |||||
Allowance for loan losses rollforward | |||||
Beginning balance | 5 | 2 | |||
Gross charge-offs | 0 | 0 | |||
Gross recoveries | 0 | 0 | |||
Net recoveries/ (charge-offs) | 0 | 0 | |||
Provision for (release of) loan losses | (1) | 0 | |||
Other | 0 | 0 | |||
Ending balance | 4 | 2 | 4 | 2 | |
Loans, additional information | |||||
Allowance, inherent | 4 | 2 | 4 | 2 | |
Allowance, specific | 0 | 0 | 0 | 0 | |
Loans, inherent | 23,337 | 19,464 | 23,337 | 19,464 | |
Loans, specific | 0 | 0 | 0 | 0 | |
Total Loans | 23,337 | 19,464 | 23,337 | 19,464 | 21,528 |
Allowance for lending-related commitments rollforward | |||||
Beginning balance | 1 | 0 | |||
Provision for lending-related commitments | 0 | 0 | |||
Other | (1) | ||||
Ending balance | 0 | 0 | 0 | 0 | |
Lending-related commitments, additional information | |||||
Allowance, inherent | 0 | 0 | 0 | 0 | |
Allowance, specific | 0 | 0 | 0 | 0 | |
Lending-related commitments, inherent | 5,264 | 4,235 | 5,264 | 4,235 | |
Lending-related commitments, specific | 0 | 0 | 0 | 0 | |
Total lending-related commitments evaluated for impairment | 5,264 | 4,235 | 5,264 | 4,235 | |
Residential Real Estate | |||||
Allowance for loan losses rollforward | |||||
Beginning balance | 17 | 8 | |||
Gross charge-offs | 0 | (1) | |||
Gross recoveries | 0 | 0 | |||
Net recoveries/ (charge-offs) | 0 | (1) | |||
Provision for (release of) loan losses | 1 | 2 | |||
Other | 0 | 0 | |||
Ending balance | 18 | 9 | 18 | 9 | |
Loans, additional information | |||||
Allowance, inherent | 18 | 9 | 18 | 9 | |
Allowance, specific | 0 | 0 | 0 | 0 | |
Loans, inherent | 22,638 | 18,214 | 22,638 | 18,214 | |
Loans, specific | 30 | 27 | 30 | 27 | |
Total Loans | 22,668 | 18,241 | 22,668 | 18,241 | 20,863 |
Allowance for lending-related commitments rollforward | |||||
Beginning balance | 0 | 0 | |||
Provision for lending-related commitments | 0 | 0 | |||
Other | 0 | ||||
Ending balance | 0 | 0 | 0 | 0 | |
Lending-related commitments, additional information | |||||
Allowance, inherent | 0 | 0 | 0 | 0 | |
Allowance, specific | 0 | 0 | 0 | 0 | |
Lending-related commitments, inherent | 327 | 289 | 327 | 289 | |
Lending-related commitments, specific | 0 | 0 | 0 | 0 | |
Total lending-related commitments evaluated for impairment | 327 | 289 | 327 | 289 | |
Wholesale Real Estate | |||||
Allowance for loan losses rollforward | |||||
Beginning balance | 37 | 21 | |||
Gross charge-offs | 0 | 0 | |||
Gross recoveries | 0 | 0 | |||
Net recoveries/ (charge-offs) | 0 | 0 | |||
Provision for (release of) loan losses | 12 | 2 | |||
Other | 0 | 0 | |||
Ending balance | 49 | 23 | 49 | 23 | |
Loans, additional information | |||||
Allowance, inherent | 49 | 23 | 49 | 23 | |
Allowance, specific | 0 | 0 | 0 | 0 | |
Loans, inherent | 7,415 | 6,388 | 7,415 | 6,388 | |
Loans, specific | 0 | 0 | 0 | 0 | |
Total Loans | 7,415 | 6,388 | 7,415 | 6,388 | $ 6,839 |
Allowance for lending-related commitments rollforward | |||||
Beginning balance | 4 | 2 | |||
Provision for lending-related commitments | 2 | 2 | |||
Other | 0 | ||||
Ending balance | 6 | 4 | 6 | 4 | |
Lending-related commitments, additional information | |||||
Allowance, inherent | 6 | 4 | 6 | 4 | |
Allowance, specific | 0 | 0 | 0 | 0 | |
Lending-related commitments, inherent | 496 | 623 | 496 | 623 | |
Lending-related commitments, specific | 0 | 0 | 0 | 0 | |
Total lending-related commitments evaluated for impairment | $ 496 | $ 623 | $ 496 | $ 623 |
Loans and Allowance for Credi73
Loans and Allowance for Credit Losses (Employee Loans) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Employee Loans | ||
Employee loans outstanding | $ 4,877 | $ 4,923 |
Allowance for employee loans | $ 100 | $ 108 |
Employee Retainment and Recruitment Program | Minimum | ||
Employee Loans | ||
Employee loan repayment terms | 1 year | |
Employee Retainment and Recruitment Program | Maximum | ||
Employee Loans | ||
Employee loan repayment terms | 12 years |
Equity Method Investments (Narr
Equity Method Investments (Narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Equity Method Investments | |||||
Equity method investment | $ 3,235 | $ 3,235 | $ 3,144 | ||
Income (loss) from equity method investments | (14) | $ 45 | 1 | $ 83 | |
MUMSS | |||||
Equity Method Investments | |||||
Income (loss) from equity method investments | $ 23 | $ 71 | $ 57 | 140 | |
Payments of Dividends by Joint Venture | 291 | ||||
Dividends received from equity method investment | $ 116 | ||||
MUMSS | MUFG | |||||
Equity Method Investments | |||||
Voting interest held by noncontrolling interest | 60.00% | 60.00% | 60.00% | 60.00% |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Savings and demand deposits | $ 151,014 | $ 153,346 |
Time deposits | 1,679 | 2,688 |
Total | 152,693 | $ 156,034 |
Maturities of Interest-bearing Deposits | ||
Savings deposits payable upon demand | 151,008 | |
Time deposits maturing in 2016 | 1,043 | |
Time deposits maturing in 2017 | 578 | |
Time deposits maturing in 2018 | $ 11 |
Long-Term Borrowings and Othe76
Long-Term Borrowings and Other Secured Financings (Other Narratives) (Details) - USD ($) $ in Billions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Long-term Borrowings | |||
Notes issued, principal amount | $ 20.6 | $ 22.9 | |
Notes matured or retired | $ 15.9 | $ 13 | |
Weighted average maturity of long-term borrowings | 6 years 4 months | 6 years 1 month |
Long-Term Borrowings and Othe77
Long-Term Borrowings and Other Secured Financings (Components of Long-term Borrowings) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Components of Long-term Borrowings | ||
Senior debt | $ 149,519 | $ 140,494 |
Subordinated debt | 11,120 | 10,404 |
Junior subordinated debentures | 2,853 | 2,870 |
Total | $ 163,492 | $ 153,768 |
Long-Term Borrowings and Othe78
Long-Term Borrowings and Other Secured Financings (Other Secured Financings) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Components of other secured financings | ||
Secured financings with original maturities greater than one year | $ 8,159 | $ 7,629 |
Secured financings with original maturities one year or less | 1,444 | 1,435 |
Failed sales | 298 | 400 |
Total other secured financings | $ 9,901 | $ 9,464 |
Commitments, Guarantees and C79
Commitments, Guarantees and Contingencies (Narrative - Contingencies) (Details) - USD ($) $ in Millions | Jun. 25, 2016 | Jan. 25, 2011 | Jul. 15, 2010 | Jun. 30, 2016 | Jan. 23, 2015 | Apr. 28, 2014 | Jul. 08, 2013 | May 03, 2013 | Jan. 10, 2013 | Sep. 28, 2012 | Aug. 08, 2012 | Aug. 07, 2012 |
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 | |||||||||||
Loss in period | $ 12 | |||||||||||
The Bank of New York Mellon Trust, National Association v. Morgan Stanley Mortgage Capital Inc. | ||||||||||||
Contingencies | ||||||||||||
Damages sought | $ 81 | |||||||||||
Estimate of possible loss, maximum | 81 | |||||||||||
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 | 258 | |||||||||||
Mortgage pass through certificate backed by securitization trusts original amount | $ 644 | |||||||||||
Mortgage pass through certificate backed by securitization trusts unpaid amount | $ 258 | |||||||||||
Mortgage pass through certificate incurred losses | $ 84 | |||||||||||
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 C80
Commitments, Guarantees and Contingencies (Commitments) (Details) $ in Millions | Jun. 30, 2016USD ($) |
Commitment, Fiscal Year Maturity | |
Less than 1 | $ 91,797 |
1-3 years | 24,812 |
3-5 years | 47,489 |
Over 5 years | 2,142 |
Total | 166,240 |
Letters of Credit and Other Financial Guarantees Obtained to Satisfy Collateral Requirements | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 125 |
1-3 years | 0 |
3-5 years | 1 |
Over 5 years | 42 |
Total | 168 |
Investment Activities | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 598 |
1-3 years | 93 |
3-5 years | 16 |
Over 5 years | 290 |
Total | 997 |
Lending Commitments | Corporate | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 15,625 |
1-3 years | 24,405 |
3-5 years | 47,248 |
Over 5 years | 1,501 |
Total | 88,779 |
Commitments participated to third parties | 3,900 |
Lending Commitments | Consumer | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 5,255 |
1-3 years | 5 |
3-5 years | 0 |
Over 5 years | 4 |
Total | 5,264 |
Lending Commitments | Residential real estate | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 52 |
1-3 years | 43 |
3-5 years | 87 |
Over 5 years | 236 |
Total | 418 |
Lending Commitments | Wholesale real estate | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 127 |
1-3 years | 266 |
3-5 years | 137 |
Over 5 years | 69 |
Total | 599 |
Forward Starting Reverse Repurchase Agreements and Securities Borrowing Agreements | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 69,990 |
1-3 years | 0 |
3-5 years | 0 |
Over 5 years | 0 |
Total | 69,990 |
Commitments due in the next three business days | 59,700 |
Underwriting Commitments | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 25 |
1-3 years | 0 |
3-5 years | 0 |
Over 5 years | 0 |
Total | $ 25 |
Commitments, Guarantees and C81
Commitments, Guarantees and Contingencies (Obligations under Guarantee Arrangements) (Details) $ in Millions | Jun. 30, 2016USD ($) |
Credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | $ 567,290 |
Carrying Amount (Asset)/Liability | 396 |
Collateral/Recourse | 0 |
Other Credit Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 344 |
Carrying Amount (Asset)/Liability | (17) |
Collateral/Recourse | 0 |
Non-credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 2,556,379 |
Carrying Amount (Asset)/Liability | 81,420 |
Collateral/Recourse | 0 |
Standby Letters of Credit and Other Financial Guarantees Issued | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 9,032 |
Carrying Amount (Asset)/Liability | (123) |
Collateral/Recourse | 6,831 |
Market Value Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 424 |
Carrying Amount (Asset)/Liability | 2 |
Collateral/Recourse | 6 |
Liquidity Facilities | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 3,001 |
Carrying Amount (Asset)/Liability | (5) |
Collateral/Recourse | 5,406 |
Whole Loan Sales Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 23,398 |
Carrying Amount (Asset)/Liability | 9 |
Collateral/Recourse | 0 |
Securitizations Representations and Warranties | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 62,180 |
Carrying Amount (Asset)/Liability | 103 |
Collateral/Recourse | 0 |
General Partner Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 435 |
Carrying Amount (Asset)/Liability | 85 |
Collateral/Recourse | 0 |
Less than 1 Year | Credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 211,128 |
Less than 1 Year | Other Credit Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 43 |
Less than 1 Year | Non-credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 1,087,106 |
Less than 1 Year | Standby Letters of Credit and Other Financial Guarantees Issued | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 803 |
Less than 1 Year | Market Value Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 63 |
Less than 1 Year | Liquidity Facilities | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 3,001 |
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 | 35 |
1 - 3 Years | Credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 200,959 |
1 - 3 Years | Other Credit Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 25 |
1 - 3 Years | Non-credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 638,791 |
1 - 3 Years | Standby Letters of Credit and Other Financial Guarantees Issued | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 1,091 |
1 - 3 Years | Market Value Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 250 |
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 | 39 |
3 - 5 Years | Credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 123,957 |
3 - 5 Years | Other Credit Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 0 |
3 - 5 Years | Non-credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 290,370 |
3 - 5 Years | Standby Letters of Credit and Other Financial Guarantees Issued | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 1,250 |
3 - 5 Years | Market Value Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 96 |
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 | 2 |
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 | 53 |
Over 5 Years | Credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 31,246 |
Over 5 Years | Other Credit Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 276 |
Over 5 Years | Non-credit Derivative Contracts | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 540,112 |
Over 5 Years | Standby Letters of Credit and Other Financial Guarantees Issued | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 5,888 |
Over 5 Years | Market Value Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 15 |
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 | 23,396 |
Over 5 Years | Securitizations Representations and Warranties | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 62,180 |
Over 5 Years | General Partner Guarantees | |
Guarantor Obligations | |
Maximum Potential Payout/Notional | 308 |
Primary and Secondary Lending Commitments | |
Guarantor Obligations | |
Standby letters of credit | $ 700 |
Variable Interest Entities an82
Variable Interest Entities and Securitization Activities (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Variable Interest Entity | ||
Additional maximum exposure to losses | $ 76 | $ 72 |
Securities issued by SPEs | 12,700 | 12,900 |
Noncontrolling interests related to consolidated VIEs | $ 257 | $ 37 |
Variable Interest Entities an83
Variable Interest Entities and Securitization Activities (Consolidated VIEs) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity | ||
VIE assets | $ 3,075 | $ 2,600 |
VIE liabilities | 460 | 436 |
Credit-linked Notes | ||
Variable Interest Entity | ||
VIE assets | 901 | 900 |
VIE liabilities | 0 | 0 |
Other Structured Financings | ||
Variable Interest Entity | ||
VIE assets | 924 | 787 |
VIE liabilities | 240 | 13 |
Mortgage and Asset-Backed Securitizations | ||
Variable Interest Entity | ||
VIE assets | 319 | 668 |
VIE liabilities | 191 | 423 |
Other | ||
Variable Interest Entity | ||
VIE assets | 931 | 245 |
VIE liabilities | $ 29 | $ 0 |
Variable Interest Entities an84
Variable Interest Entities and Securitization Activities (Consolidated VIEs Assets and Liabilities, Generally Not Available to the Company) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Assets | |||
Cash and due from banks | $ 27,597 | $ 19,827 | $ 19,145 |
Trading assets, fair value | 256,794 | 239,505 | |
Customer and other receivables | 52,827 | 45,407 | |
Goodwill | 6,581 | 6,584 | |
Intangible assets | 2,833 | 2,984 | |
Other Assets | 51,526 | 51,087 | |
Total assets | 828,873 | 787,465 | |
Liabilities | |||
Other secured financings | 2,921 | 2,854 | |
Other liabilities and accrued expenses | 14,112 | 18,711 | |
Total liabilities | 750,498 | 711,281 | |
Consolidated VIEs | |||
Assets | |||
Cash and due from banks | 62 | 14 | |
Trading assets, fair value | 1,973 | 1,842 | |
Customer and other receivables | 3 | 3 | |
Goodwill | 18 | 0 | |
Intangible assets | 141 | 0 | |
Other Assets | 878 | 741 | |
Total assets | 3,075 | 2,600 | |
Liabilities | |||
Other secured financings | 430 | 431 | |
Other liabilities and accrued expenses | 30 | 5 | |
Total liabilities | $ 460 | $ 436 |
Variable Interest Entities an85
Variable Interest Entities and Securitization Activities (Non-Consolidated VIEs) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Mortgage and Asset-Backed Securities | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | $ 115,088 | $ 126,872 |
Maximum exposure to loss | 13,282 | 13,855 |
Carrying value of exposure to loss - Assets | 12,670 | 13,361 |
Carrying value of exposure to loss - Liabilities | 0 | 0 |
Mortgage and Asset-Backed Securities | Debt and equity interests | ||
Variable Interest Entity | ||
Maximum exposure to loss | 12,670 | 13,361 |
Carrying value of exposure to loss - Assets | 12,670 | 13,361 |
Mortgage and Asset-Backed Securities | Derivative and other contracts | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of exposure to loss - Assets | 0 | 0 |
Carrying value of exposure to loss - Liabilities | 0 | 0 |
Mortgage and Asset-Backed Securities | Commitments, guarantees and other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 612 | 494 |
Carrying value of exposure to loss - Liabilities | 0 | 0 |
Residential Mortgage | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 3,708 | 13,787 |
Residential Mortgage | Debt and equity interests | ||
Variable Interest Entity | ||
Carrying value of exposure to loss - Assets | 410 | 1,012 |
Commercial Mortgage | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 55,158 | 57,313 |
Commercial Mortgage | Debt and equity interests | ||
Variable Interest Entity | ||
Carrying value of exposure to loss - Assets | 2,576 | 2,871 |
U.S. Agency Collateralized Mortgage Obligations | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 20,853 | 13,236 |
U.S. Agency Collateralized Mortgage Obligations | Debt and equity interests | ||
Variable Interest Entity | ||
Carrying value of exposure to loss - Assets | 3,766 | 2,763 |
Other Consumer or Commercial Loans | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 35,369 | 42,536 |
Other Consumer or Commercial Loans | Debt and equity interests | ||
Variable Interest Entity | ||
Carrying value of exposure to loss - Assets | 5,918 | 6,715 |
Collateralized Debt Obligations | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 6,825 | 8,805 |
Maximum exposure to loss | 1,305 | 1,490 |
Carrying value of exposure to loss - Assets | 955 | 1,259 |
Carrying value of exposure to loss - Liabilities | 0 | 0 |
Collateralized Debt Obligations | Debt and equity interests | ||
Variable Interest Entity | ||
Maximum exposure to loss | 955 | 1,259 |
Carrying value of exposure to loss - Assets | 955 | 1,259 |
Collateralized Debt Obligations | Derivative and other contracts | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of exposure to loss - Assets | 0 | 0 |
Carrying value of exposure to loss - Liabilities | 0 | 0 |
Collateralized Debt Obligations | Commitments, guarantees and other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 350 | 231 |
Carrying value of exposure to loss - Liabilities | 0 | 0 |
Municipal Tender Option Bonds | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 4,999 | 4,654 |
Maximum exposure to loss | 3,032 | 2,835 |
Carrying value of exposure to loss - Assets | 8 | 6 |
Carrying value of exposure to loss - Liabilities | 0 | 0 |
Municipal Tender Option Bonds | Debt and equity interests | ||
Variable Interest Entity | ||
Maximum exposure to loss | 31 | 1 |
Carrying value of exposure to loss - Assets | 3 | 1 |
Municipal Tender Option Bonds | Derivative and other contracts | ||
Variable Interest Entity | ||
Maximum exposure to loss | 3,001 | 2,834 |
Carrying value of exposure to loss - Assets | 5 | 5 |
Carrying value of exposure to loss - Liabilities | 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 - Liabilities | 0 | 0 |
Other Structured Financings | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 4,081 | 2,201 |
Maximum exposure to loss | 2,075 | 1,490 |
Carrying value of exposure to loss - Assets | 1,324 | 685 |
Carrying value of exposure to loss - Liabilities | 2 | 3 |
Other Structured Financings | Debt and equity interests | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,712 | 1,129 |
Carrying value of exposure to loss - Assets | 1,324 | 685 |
Other Structured Financings | Derivative and other contracts | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of exposure to loss - Assets | 0 | 0 |
Carrying value of exposure to loss - Liabilities | 0 | 0 |
Other Structured Financings | Commitments, guarantees and other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 363 | 361 |
Carrying value of exposure to loss - Liabilities | 2 | 3 |
Other | ||
Variable Interest Entity | ||
VIE assets that the Company does not consolidate (unpaid principal balance) | 39,281 | 20,775 |
Maximum exposure to loss | 5,079 | 4,143 |
Carrying value of exposure to loss - Assets | 4,733 | 3,867 |
Carrying value of exposure to loss - Liabilities | 41 | 15 |
Other | Debt and equity interests | ||
Variable Interest Entity | ||
Maximum exposure to loss | 4,706 | 3,854 |
Carrying value of exposure to loss - Assets | 4,706 | 3,854 |
Other | Derivative and other contracts | ||
Variable Interest Entity | ||
Maximum exposure to loss | 73 | 67 |
Carrying value of exposure to loss - Assets | 27 | 13 |
Carrying value of exposure to loss - Liabilities | 31 | 15 |
Other | Commitments, guarantees and other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 300 | 222 |
Carrying value of exposure to loss - Liabilities | $ 10 | $ 0 |
Variable Interest Entities an86
Variable Interest Entities and Securitization Activities (Transfers of Assets with Continuing Involvement 1) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity | ||
Derivative assets (fair value) | $ 38,158 | $ 28,613 |
Derivative liabilities (fair value) | 37,323 | 29,474 |
Special Purpose Entities | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,890 | 2,246 |
Interests purchased in the secondary market (fair value) | 274 | 320 |
Derivative assets (fair value) | 497 | 494 |
Derivative liabilities (fair value) | 449 | 449 |
Special Purpose Entities | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 798 | 887 |
Interests purchased in the secondary market (fair value) | 174 | 187 |
Special Purpose Entities | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,092 | 1,359 |
Interests purchased in the secondary market (fair value) | 100 | 133 |
Special Purpose Entities | Residential Mortgage | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 21,239 | 22,440 |
Retained interests (fair value) | 54 | 160 |
Interests purchased in the secondary market (fair value) | 53 | 60 |
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 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Residential Mortgage | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 54 | 160 |
Interests purchased in the secondary market (fair value) | 53 | 60 |
Special Purpose Entities | Commercial Mortgage Loans (CMBS) | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 51,025 | 72,760 |
Retained interests (fair value) | 107 | 301 |
Interests purchased in the secondary market (fair value) | 79 | 151 |
Derivative assets (fair value) | 291 | 343 |
Derivative liabilities (fair value) | 0 | 0 |
Special Purpose Entities | Commercial Mortgage Loans (CMBS) | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 43 | 238 |
Interests purchased in the secondary market (fair value) | 32 | 88 |
Special Purpose Entities | Commercial Mortgage Loans (CMBS) | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 64 | 63 |
Interests purchased in the secondary market (fair value) | 47 | 63 |
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 11,116 | 17,978 |
Retained interests (fair value) | 755 | 649 |
Interests purchased in the secondary market (fair value) | 142 | 99 |
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) | 755 | 649 |
Interests purchased in the secondary market (fair value) | 142 | 99 |
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) | 11,668 | 12,235 |
Retained interests (fair value) | 974 | 1,136 |
Interests purchased in the secondary market (fair value) | 0 | 10 |
Derivative assets (fair value) | 206 | 151 |
Derivative liabilities (fair value) | 449 | 449 |
Special Purpose Entities | Credit-Linked Notes and Other | Investment 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 | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 974 | 1,136 |
Interests purchased in the secondary market (fair value) | $ 0 | $ 10 |
Variable Interest Entities an87
Variable Interest Entities and Securitization Activities (Transfers of Assets with Continuing Involvement 2) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity | ||
Derivative assets (fair value) | $ 38,158 | $ 28,613 |
Derivative liabilities (fair value) | 37,323 | 29,474 |
Special Purpose Entities | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,890 | 2,246 |
Interests purchased in the secondary market (fair value) | 274 | 320 |
Derivative assets (fair value) | 497 | 494 |
Derivative liabilities (fair value) | 449 | 449 |
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) | 813 | 903 |
Interests purchased in the secondary market (fair value) | 259 | 299 |
Derivative assets (fair value) | 482 | 466 |
Derivative liabilities (fair value) | 102 | 110 |
Special Purpose Entities | Level 3 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,077 | 1,343 |
Interests purchased in the secondary market (fair value) | 15 | 21 |
Derivative assets (fair value) | 15 | 28 |
Derivative liabilities (fair value) | 347 | 339 |
Special Purpose Entities | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 798 | 887 |
Interests purchased in the secondary market (fair value) | 174 | 187 |
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) | 798 | 886 |
Interests purchased in the secondary market (fair value) | 174 | 187 |
Special Purpose Entities | Investment Grade | Level 3 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 0 | 1 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,092 | 1,359 |
Interests purchased in the secondary market (fair value) | 100 | 133 |
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) | 15 | 17 |
Interests purchased in the secondary market (fair value) | 85 | 112 |
Special Purpose Entities | Noninvestment Grade | Level 3 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,077 | 1,342 |
Interests purchased in the secondary market (fair value) | $ 15 | $ 21 |
Variable Interest Entities an88
Variable Interest Entities and Securitization Activities (Proceeds from retained interests in securitization transactions) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Securitization Activities and Variable Interest Entities [Abstract] | ||||
Proceeds received from new securitization transactions | $ 4,163 | $ 6,273 | $ 6,876 | $ 11,164 |
Proceeds from retained interests in securitization transactions | 502 | 658 | 1,133 | 1,606 |
Collateralized Loan Obligations | Special Purpose Entities | ||||
Variable Interest Entity | ||||
Maturities, payments and sales | $ 0 | $ 621 | $ 31 | $ 966 |
Variable Interest Entities an89
Variable Interest Entities and Securitization Activities (Bilateral OTD equity derivatives) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Variable Interest Entity | ||
Fair value of derivative assets recognized in the condensed consolidated balance sheet | $ 38,158 | $ 28,613 |
Fair value of derivative liabilities recognized in the condensed consolidated balance sheet | 37,323 | 29,474 |
Equity Securities And Over The Counter | ||
Variable Interest Entity | ||
Carrying value of assets derecognized at the time of sale and gross cash proceeds | 9,524 | 7,878 |
Fair value of assets sold | 9,692 | 7,935 |
Fair value of derivative assets recognized in the condensed consolidated balance sheet | 218 | 97 |
Fair value of derivative liabilities recognized in the condensed consolidated balance sheet | $ 50 | $ 40 |
Variable Interest Entities an90
Variable Interest Entities and Securitization Activities (Failed Sales) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity | ||
Assets, carrying value | $ 298 | $ 400 |
Liabilities, carrying value | $ 298 | $ 400 |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
MS&Co. | ||
Regulatory Requirements | ||
Net capital | $ 10,353 | $ 10,254 |
Amount of capital that exceeds the minimum required | 8,397 | 8,458 |
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 | 3,752 | 3,613 |
Amount of capital that exceeds the minimum required | $ 3,595 | $ 3,459 |
Regulatory Requirements (Capita
Regulatory Requirements (Capital Measures) (Details) - U.S. Basel III - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Advanced Approach transitional rules | ||
Balance | ||
Common Equity Tier 1 capital, amount | $ 59,796 | $ 59,409 |
Tier 1 capital, amount | 66,782 | 66,722 |
Total capital, amount | 79,830 | 79,403 |
Tier 1 leverage capital, amount | 0 | 0 |
Assets | ||
RWAs | 355,982 | 384,162 |
Adjusted average total assets | $ 804,511 | $ 803,574 |
Ratio | ||
Common Equity Tier 1 capital, ratio | 16.80% | 15.50% |
Tier 1 capital ratio | 18.80% | 17.40% |
Total capital ratio | 22.40% | 20.70% |
Minimum Regulatory Capital Ratio | ||
Minimum Common Equity Tier 1 capital, required | 5.90% | 4.50% |
Minimum Tier 1 capital ratio, required | 7.40% | 6.00% |
Minimum total capital ratio, required | 9.40% | 8.00% |
Minimum Tier 1 leverage ratio, required | 4.00% | 4.00% |
Standardized Approach transitional rules | ||
Ratio | ||
Tier 1 leverage ratio | 8.30% | 8.30% |
Regulatory Requirements (Signif
Regulatory Requirements (Significant U.S. Bank Operating Subsidiaries' Capital) (Details) - U.S. Basel III - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Advanced Approach transitional rules | ||
Regulatory Requirements | ||
Common Equity Tier 1 capital, amount | $ 59,796 | $ 59,409 |
Tier 1 capital, amount | 66,782 | 66,722 |
Total capital, amount | 79,830 | 79,403 |
Tier 1 leverage capital, amount | $ 0 | $ 0 |
Ratio | ||
Common Equity Tier 1 capital, ratio | 16.80% | 15.50% |
Tier 1 capital ratio | 18.80% | 17.40% |
Total capital ratio | 22.40% | 20.70% |
Standardized Approach transitional rules | ||
Ratio | ||
Tier 1 leverage ratio | 8.30% | 8.30% |
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 Approach transitional rules | ||
Regulatory Requirements | ||
Common Equity Tier 1 capital, amount | $ 14,523 | $ 13,333 |
Tier 1 capital, amount | 14,523 | 13,333 |
Total capital, amount | 16,321 | 15,097 |
Tier 1 leverage capital, amount | $ 14,523 | $ 13,333 |
Ratio | ||
Common Equity Tier 1 capital, ratio | 16.80% | 15.10% |
Tier 1 capital ratio | 16.80% | 15.10% |
Total capital ratio | 18.90% | 17.10% |
Tier 1 leverage ratio | 10.90% | 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 Approach transitional rules | ||
Regulatory Requirements | ||
Common Equity Tier 1 capital, amount | $ 5,153 | $ 4,197 |
Tier 1 capital, amount | 5,153 | 4,197 |
Total capital, amount | 5,186 | 4,225 |
Tier 1 leverage capital, amount | $ 5,153 | $ 4,197 |
Ratio | ||
Common Equity Tier 1 capital, ratio | 28.00% | 26.50% |
Tier 1 capital ratio | 28.00% | 26.50% |
Total capital ratio | 28.20% | 26.70% |
Tier 1 leverage ratio | 11.40% | 10.50% |
Total Equity (Narrative) (Detai
Total Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Treasury Shares | |||||
Authorized repurchase amount of outstanding common stock | $ 3,500 | $ 3,500 | |||
Common stock repurchased | $ 625 | $ 625 | $ 1,250 | $ 875 | |
Common Stock, Dividends, Per Share, Declared | $ 0.15 | $ 0.15 | $ 0.3 | $ 0.25 | |
Nonredeemable Noncontrolling Interests | |||||
Noncontrolling interests | $ 1,259 | $ 1,259 | $ 1,002 | ||
Reduction in nonredeemable noncontrolling interests primarily related to deconsolidation of certain legal entities associated with a real estate fund | $ 191 | ||||
Preferred Stock | |||||
Dividends, Preferred Stock | $ 156 | $ 141 | $ 234 | $ 219 |
Total Equity (Preferred Stock O
Total Equity (Preferred Stock Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Class of Stock | ||
Preferred stock carrying value | $ 7,520 | $ 7,520 |
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 | $ 1,500 |
Total Equity (Components of Acc
Total Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Beginning balance | $ (1,238) | $ (1,266) | $ (1,656) | $ (1,248) |
Cumulative adjustment for accounting change related to DVA | (312) | |||
Other comprehensive income (loss) before reclassifications | 378 | (162) | 1,142 | (167) |
Amounts reclassified from AOCI | (45) | (19) | (79) | (32) |
Net other comprehensive income (loss) during the period | 333 | (181) | 1,063 | (199) |
Ending balance | (905) | (1,447) | (905) | (1,447) |
Provision for (benefit from) income taxes resulting from reclassification related to AFS securities | (26) | (11) | (30) | (20) |
Provision for (benefit from) income taxes resulting from reclassification related to DVA | (15) | |||
Debt Valuation Adjustment | ||||
Beginning balance | (110) | 0 | 0 | 0 |
Cumulative adjustment for accounting change related to DVA | (312) | |||
Other comprehensive income (loss) before reclassifications | 143 | 0 | 371 | 0 |
Amounts reclassified from AOCI | 0 | 0 | (26) | 0 |
Net other comprehensive income (loss) during the period | 143 | 0 | 345 | 0 |
Ending balance | 33 | 0 | 33 | 0 |
Foreign Currency Translation Adjustments | ||||
Beginning balance | (831) | (883) | (963) | (663) |
Cumulative adjustment for accounting change related to DVA | 0 | |||
Other comprehensive income (loss) before reclassifications | 52 | 50 | 184 | (170) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Net other comprehensive income (loss) during the period | 52 | 50 | 184 | (170) |
Ending balance | (779) | (833) | (779) | (833) |
Change in Net Unrealized Gains (Losses) on Securities Available for Sale | ||||
Beginning balance | 76 | 127 | (319) | (73) |
Cumulative adjustment for accounting change related to DVA | 0 | |||
Other comprehensive income (loss) before reclassifications | 188 | (208) | 590 | 7 |
Amounts reclassified from AOCI | (45) | (20) | (52) | (35) |
Net other comprehensive income (loss) during the period | 143 | (228) | 538 | (28) |
Ending balance | 219 | (101) | 219 | (101) |
Pension, Postretirement and Other Related Adjustments | ||||
Beginning balance | (373) | (510) | (374) | (512) |
Cumulative adjustment for accounting change related to DVA | 0 | |||
Other comprehensive income (loss) before reclassifications | (5) | (4) | (3) | (4) |
Amounts reclassified from AOCI | 0 | 1 | (1) | 3 |
Net other comprehensive income (loss) during the period | (5) | (3) | (4) | (1) |
Ending balance | $ (378) | $ (513) | $ (378) | $ (513) |
Earnings Per Common Share (Calc
Earnings Per Common Share (Calculation of Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic EPS: | ||||
Income from continuing operations | $ 1,650 | $ 1,833 | $ 2,810 | $ 4,301 |
Income (loss) from discontinued operations | (4) | (2) | (7) | (7) |
Net income | 1,646 | 1,831 | 2,803 | 4,294 |
Net income applicable to noncontrolling interests | 64 | 24 | 87 | 93 |
Net income applicable to Morgan Stanley | 1,582 | 1,807 | 2,716 | 4,201 |
Less: Preferred dividends | (156) | (141) | (234) | (219) |
Less: Allocation of (earnings) loss to participating RSUs | (1) | (1) | (1) | (3) |
Earnings applicable to Morgan Stanley common shareholders | $ 1,425 | $ 1,665 | $ 2,481 | $ 3,979 |
Weighted average common shares outstanding | 1,866 | 1,919 | 1,875 | 1,922 |
Earnings per basic common share: | ||||
Income from continuing operations | $ 0.77 | $ 0.87 | $ 1.33 | $ 2.07 |
Income (loss) from discontinued operations | (0.01) | 0 | (0.01) | 0 |
Earnings (loss) per basic common share | $ 0.76 | $ 0.87 | $ 1.32 | $ 2.07 |
Diluted EPS: | ||||
Earnings applicable to Morgan Stanley common shareholders | $ 1,425 | $ 1,665 | $ 2,481 | $ 3,979 |
Weighted average common shares outstanding | 1,866 | 1,919 | 1,875 | 1,922 |
Effect of dilutive securities: | ||||
Stock options and RSUs | 33 | 41 | 32 | 40 |
Weighted average common shares outstanding and common stock equivalents | 1,899 | 1,960 | 1,907 | 1,962 |
Earnings per diluted common share: | ||||
Income from continuing operations | $ 0.75 | $ 0.85 | $ 1.3 | $ 2.03 |
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Earnings (loss) per diluted common share | $ 0.75 | $ 0.85 | $ 1.3 | $ 2.03 |
Antidilutive securities outstanding | 14 | 12 | 15 | 12 |
Earnings Per Common Share (Anti
Earnings Per Common Share (Antidilutive Securities Excluded from the Computation of Diluted EPS) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive securities outstanding | 14 | 12 | 15 | 12 |
Interest Income and Interest 99
Interest Income and Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income: | ||||
Trading assets | $ 526 | $ 555 | $ 1,109 | $ 1,149 |
Investment securities | 237 | 238 | 473 | 438 |
Loans | 680 | 529 | 1,327 | 1,004 |
Interest bearing deposits with banks | 52 | 22 | 105 | 45 |
Interest income securities purchased under agreements to resell and securities borrowed | (120) | (200) | (198) | (305) |
Customer receivables and Other | 292 | 242 | 598 | 539 |
Total Interest income | 1,667 | 1,386 | 3,414 | 2,870 |
Interest expense: | ||||
Deposits | 15 | 17 | 37 | 35 |
Short-term borrowings | 7 | 5 | 14 | 9 |
Long-term borrowings | 844 | 915 | 1,804 | 1,841 |
Securities sold under agreements to repurchase and Securities loaned | 259 | 235 | 513 | 543 |
Customer payables and Other | (371) | (484) | (766) | (852) |
Total Interest expense | 754 | 688 | 1,602 | 1,576 |
Net interest | $ 913 | $ 698 | $ 1,812 | $ 1,294 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Components of Net Periodic Benefit Expense (Income) | ||||
Service cost, benefits earned during the period | $ 4 | $ 5 | $ 8 | $ 10 |
Interest cost on projected benefit obligation | 39 | 38 | 77 | 77 |
Expected return on plan assets | (30) | (29) | (60) | (59) |
Net amortization of prior service cost | (5) | (5) | (9) | (10) |
Net amortization of actuarial loss | 3 | 7 | 6 | 13 |
Net periodic benefit expense | $ 11 | $ 16 | $ 22 | $ 31 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Effective Income Tax Rate) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
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. | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |
Aggregate discrete net tax expense (benefit) from continuing operations | $ (564) |
Segment and Geographic Infor102
Segment and Geographic Information (Selected Financial Information by Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information | |||||
Total non-interest revenues | $ 7,996 | $ 9,045 | $ 14,889 | $ 18,356 | |
Interest income | 1,667 | 1,386 | 3,414 | 2,870 | |
Interest expense | 754 | 688 | 1,602 | 1,576 | |
Net interest | 913 | 698 | 1,812 | 1,294 | |
Net revenues | 8,909 | 9,743 | 16,701 | 19,650 | |
Income (loss) from continuing operations before income taxes | 2,483 | 2,727 | 4,221 | 5,582 | |
Provision for income taxes | 833 | 894 | 1,411 | 1,281 | |
Income from continuing operations | 1,650 | 1,833 | 2,810 | 4,301 | |
Discontinued operations: | |||||
Income (loss) from discontinued operations, net of income taxes | (4) | (2) | (7) | (7) | |
Net income (loss) | 1,646 | 1,831 | 2,803 | 4,294 | |
Net income applicable to noncontrolling interests | 64 | 24 | 87 | 93 | |
Net income (loss) applicable to Morgan Stanley | 1,582 | 1,807 | 2,716 | 4,201 | |
Segment Reporting Information, Additional Information | |||||
Performance-based fee revenue at risk | 421 | 421 | $ 422 | ||
Reduction of fees | 12 | 50 | 35 | 100 | |
Intersegment Eliminations | |||||
Segment Reporting Information | |||||
Total non-interest revenues | (63) | (55) | (130) | (109) | |
Interest income | (222) | (119) | (443) | (243) | |
Interest expense | (222) | (119) | (443) | (243) | |
Net interest | 0 | 0 | 0 | 0 | |
Net revenues | (63) | (55) | (130) | (109) | |
Income (loss) from continuing operations before income taxes | 0 | 0 | 0 | 0 | |
Provision for income taxes | 0 | 0 | 0 | 0 | |
Income from continuing operations | 0 | 0 | 0 | 0 | |
Discontinued operations: | |||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | |
Net income (loss) | 0 | 0 | 0 | 0 | |
Net income applicable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income (loss) applicable to Morgan Stanley | 0 | 0 | 0 | 0 | |
Institutional Securities | |||||
Segment Reporting Information | |||||
Total non-interest revenues | 4,496 | 5,205 | 8,141 | 10,751 | |
Interest income | 966 | 723 | 2,019 | 1,593 | |
Interest expense | 884 | 756 | 1,868 | 1,714 | |
Net interest | 82 | (33) | 151 | (121) | |
Net revenues | 4,578 | 5,172 | 8,292 | 10,630 | |
Income (loss) from continuing operations before income taxes | 1,506 | 1,622 | 2,414 | 3,435 | |
Provision for income taxes | 453 | 511 | 728 | 517 | |
Income from continuing operations | 1,053 | 1,111 | 1,686 | 2,918 | |
Discontinued operations: | |||||
Income (loss) from discontinued operations, net of income taxes | (4) | (2) | (7) | (7) | |
Net income (loss) | 1,049 | 1,109 | 1,679 | 2,911 | |
Net income applicable to noncontrolling interests | 61 | 22 | 100 | 74 | |
Net income (loss) applicable to Morgan Stanley | 988 | 1,087 | 1,579 | 2,837 | |
Segment Reporting Information, Additional Information | |||||
Other Income tax benefit | 564 | ||||
Wealth Management | |||||
Segment Reporting Information | |||||
Total non-interest revenues | 2,982 | 3,138 | 5,819 | 6,283 | |
Interest income | 920 | 782 | 1,834 | 1,519 | |
Interest expense | 91 | 45 | 174 | 93 | |
Net interest | 829 | 737 | 1,660 | 1,426 | |
Net revenues | 3,811 | 3,875 | 7,479 | 7,709 | |
Income (loss) from continuing operations before income taxes | 859 | 885 | 1,645 | 1,740 | |
Provision for income taxes | 343 | 324 | 636 | 644 | |
Income from continuing operations | 516 | 561 | 1,009 | 1,096 | |
Discontinued operations: | |||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | |
Net income (loss) | 516 | 561 | 1,009 | 1,096 | |
Net income applicable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income (loss) applicable to Morgan Stanley | 516 | 561 | 1,009 | 1,096 | |
Investment Management | |||||
Segment Reporting Information | |||||
Total non-interest revenues | 581 | 757 | 1,059 | 1,431 | |
Interest income | 3 | 0 | 4 | 1 | |
Interest expense | 1 | 6 | 3 | 12 | |
Net interest | 2 | (6) | 1 | (11) | |
Net revenues | 583 | 751 | 1,060 | 1,420 | |
Income (loss) from continuing operations before income taxes | 118 | 220 | 162 | 407 | |
Provision for income taxes | 37 | 59 | 47 | 120 | |
Income from continuing operations | 81 | 161 | 115 | 287 | |
Discontinued operations: | |||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | |
Net income (loss) | 81 | 161 | 115 | 287 | |
Net income applicable to noncontrolling interests | 3 | 2 | (13) | 19 | |
Net income (loss) applicable to Morgan Stanley | $ 78 | $ 159 | $ 128 | $ 268 |
Segment and Geographic Infor103
Segment and Geographic Information (Assets by Segments) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | |
Segment Reporting Information | |||
Assets | $ 828,873 | $ 787,465 | |
Reduction in nonredeemable noncontrolling interests primarily related to deconsolidation of certain legal entities associated with a real estate fund | $ 191 | ||
Institutional Securities | |||
Segment Reporting Information | |||
Assets | 641,373 | 602,714 | |
Wealth Management | |||
Segment Reporting Information | |||
Assets | 182,801 | 179,708 | |
Investment Management | |||
Segment Reporting Information | |||
Assets | $ 4,699 | $ 5,043 |
Segment and Geographic Infor104
Segment and Geographic Information (Net Revenues by Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information | ||||
Net Revenues | $ 8,909 | $ 9,743 | $ 16,701 | $ 19,650 |
Americas | ||||
Segment Reporting Information | ||||
Net Revenues | 6,538 | 6,777 | 12,290 | 13,707 |
EMEA | ||||
Segment Reporting Information | ||||
Net Revenues | 1,312 | 1,436 | 2,441 | 3,198 |
Asia-Pacific | ||||
Segment Reporting Information | ||||
Net Revenues | $ 1,059 | $ 1,530 | $ 1,970 | $ 2,745 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Billions | Jul. 25, 2016 | Jul. 20, 2016 | Aug. 03, 2016 | Jul. 29, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Subsequent Event | ||||||||
Dividends declared per common share | $ 0.15 | $ 0.15 | $ 0.3 | $ 0.25 | ||||
Subsequent Event | ||||||||
Subsequent Event | ||||||||
Dividends declared per common share | $ 0.2 | |||||||
Dividends declared date | Jul. 20, 2016 | |||||||
Dividend payable date | Aug. 15, 2016 | |||||||
Shareholders of record, date | Jul. 29, 2016 | |||||||
Increase in long-term borrowings | $ 3.4 | |||||||
Impact on EPS | ||||||||
Trust preferred securities redemption, total | $ 2.8 | |||||||
Subsequent Event | Senior Debt | ||||||||
Subsequent Event | ||||||||
Debt issuances | $ 3 |