Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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 | 1,836,580,691 |
Consolidated Income Statements
Consolidated Income Statements (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues | ||||
Investment banking | $ 1,530 | $ 1,224 | $ 3,075 | $ 2,331 |
Trading | 2,931 | 2,746 | 6,166 | 4,811 |
Investments | 163 | 126 | 328 | 92 |
Commissions and fees | 1,027 | 1,020 | 2,060 | 2,075 |
Asset management, distribution and administration fees | 2,902 | 2,637 | 5,669 | 5,257 |
Other | 199 | 243 | 428 | 323 |
Total non-interest revenues | 8,752 | 7,996 | 17,726 | 14,889 |
Interest income | 2,106 | 1,667 | 4,071 | 3,414 |
Interest expense | 1,355 | 754 | 2,549 | 1,602 |
Net interest | 751 | 913 | 1,522 | 1,812 |
Net revenues | 9,503 | 8,909 | 19,248 | 16,701 |
Non-interest expenses | ||||
Compensation and benefits | 4,252 | 4,015 | 8,718 | 7,698 |
Occupancy and equipment | 333 | 329 | 660 | 658 |
Brokerage, clearing and exchange fees | 525 | 484 | 1,034 | 949 |
Information processing and communications | 433 | 429 | 861 | 871 |
Marketing and business development | 155 | 154 | 291 | 288 |
Professional services | 561 | 547 | 1,088 | 1,061 |
Other | 602 | 468 | 1,146 | 955 |
Total non-interest expenses | 6,861 | 6,426 | 13,798 | 12,480 |
Income from continuing operations before income taxes | 2,642 | 2,483 | 5,450 | 4,221 |
Provision for income taxes | 846 | 833 | 1,661 | 1,411 |
Income from continuing operations | 1,796 | 1,650 | 3,789 | 2,810 |
Income (loss) from discontinued operations, net of income taxes | (5) | (4) | (27) | (7) |
Net income | 1,791 | 1,646 | 3,762 | 2,803 |
Net income applicable to noncontrolling interests | 34 | 64 | 75 | 87 |
Net income applicable to Morgan Stanley | 1,757 | 1,582 | 3,687 | 2,716 |
Preferred stock dividends and other | 170 | 157 | 260 | 235 |
Earnings applicable to Morgan Stanley common shareholders | $ 1,587 | $ 1,425 | $ 3,427 | $ 2,481 |
Earnings per basic common share | ||||
Income from continuing operations | $ 0.89 | $ 0.77 | $ 1.92 | $ 1.33 |
Income (loss) from discontinued operations | 0 | (0.01) | (0.01) | (0.01) |
Earnings per basic common share | 0.89 | 0.76 | 1.91 | 1.32 |
Earnings per diluted common share | ||||
Income from continuing operations | 0.87 | 0.75 | 1.88 | 1.3 |
Income (loss) from discontinued operations | 0 | 0 | (0.01) | 0 |
Earnings per diluted common share | 0.87 | 0.75 | 1.87 | 1.3 |
Dividends declared per common share | $ 0.2 | $ 0.15 | $ 0.4 | $ 0.3 |
Average common shares outstanding | ||||
Basic | 1,791 | 1,866 | 1,796 | 1,875 |
Diluted | 1,830 | 1,899 | 1,836 | 1,907 |
Consolidated Comprehensive Inco
Consolidated Comprehensive Income Statements (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Comprehensive Income Statements | ||||
Net income | $ 1,791 | $ 1,646 | $ 3,762 | $ 2,803 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 12 | 131 | 162 | 317 |
Change in net unrealized gains on available-for-sale securities | 108 | 143 | 192 | 538 |
Pension, postretirement and other | 4 | (5) | 4 | (4) |
Change in net debt valuation adjustment | (183) | 145 | (174) | 348 |
Total other comprehensive income (loss) | (59) | 414 | 184 | 1,199 |
Comprehensive income | 1,732 | 2,060 | 3,946 | 4,002 |
Net income applicable to noncontrolling interests | 34 | 64 | 75 | 87 |
Other comprehensive income (loss) applicable to noncontrolling interests | (21) | 81 | 29 | 136 |
Comprehensive income applicable to Morgan Stanley | $ 1,719 | $ 1,915 | $ 3,842 | $ 3,779 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 25,008 | $ 22,017 |
Interest bearing deposits with banks | 19,651 | 21,364 |
Trading assets at fair value ($163,689 and $152,548 were pledged to various parties) | 290,802 | 262,154 |
Investment securities (includes $50,488 and $63,170 at fair value) | 71,576 | 80,092 |
Securities purchased under agreements to resell (includes $102 and $302 at fair value) | 97,408 | 101,955 |
Securities borrowed | 126,722 | 125,236 |
Customer and other receivables | 54,917 | 46,460 |
Loans | ||
Held for investment (net of allowance of $306 and $274) | 87,007 | 81,704 |
Held for sale | 10,632 | 12,544 |
Goodwill | 6,591 | 6,577 |
Intangible assets (net of accumulated amortization of $2,575 and $2,421) | 2,567 | 2,721 |
Other assets | 48,135 | 52,125 |
Total assets | 841,016 | 814,949 |
Liabilities | ||
Deposits (includes $130 and $63 at fair value) | 144,913 | 155,863 |
Short-term borrowings (includes $582 and $406 at fair value) | 916 | 941 |
Trading liabilities at fair value | 134,810 | 128,194 |
Securities sold under agreements to repurchase (includes $738 and $729 at fair value) | 50,697 | 54,628 |
Securities loaned | 16,862 | 15,844 |
Other secured financings (includes $5,731 and $5,041 at fair value) | 16,642 | 11,118 |
Customer and other payables | 197,055 | 190,513 |
Other liabilities and accrued expenses | 15,042 | 15,896 |
Long-term borrowings (includes $43,226 and $38,736 at fair value) | 184,112 | 164,775 |
Total liabilities | 761,049 | 737,772 |
Commitments and contingent liabilities | ||
Morgan Stanley shareholders' equity: | ||
Preferred stock | 8,520 | 7,520 |
Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,839,578,174 and 1,852,481,601 | 20 | 20 |
Additional paid-in capital | 23,140 | 23,271 |
Retained earnings | 56,325 | 53,679 |
Employee stock trusts | 2,945 | 2,851 |
Accumulated other comprehensive income (loss) | (2,488) | (2,643) |
Common stock held in treasury at cost, $0.01 par value (199,315,805 and 186,412,378 shares) | (6,691) | (5,797) |
Common stock issued to employee stock trusts | (2,945) | (2,851) |
Total Morgan Stanley shareholders' equity | 78,826 | 76,050 |
Noncontrolling interests | 1,141 | 1,127 |
Total equity | 79,967 | 77,177 |
Total liabilities and equity | $ 841,016 | $ 814,949 |
Consolidated Balance Sheets (U5
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheets | ||
Trading assets pledged to various parties | $ 163,689 | $ 152,548 |
Investment securities at fair value | 50,488 | 63,170 |
Securities purchased under agreement to resell at fair value | 102 | 302 |
Allowance for loans held for investment | 306 | 274 |
Intangible assets, accumulated amortization | 2,575 | 2,421 |
Deposits at fair value | 130 | 63 |
Short-term borrowings at fair value | 582 | 406 |
Securities sold under agreement to repurchase at fair value | 738 | 729 |
Other secured financings at fair value | 5,731 | 5,041 |
Long-term borrowings at fair value | $ 43,226 | $ 38,736 |
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 | 1,839,578,174 | 1,852,481,601 |
Common stock held in treasury, shares | 199,315,805 | 186,412,378 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Total Equity (Unaudited) - 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, 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 | [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 | |
Balance at at Dec. 31, 2016 | 77,177 | 7,520 | 20 | 23,271 | 53,679 | 2,851 | (2,643) | (5,797) | (2,851) | 1,127 | |
Cumulative adjustment for accounting changes | [3] | 10 | 45 | (35) | |||||||
Net income applicable to Morgan Stanley | 3,687 | 3,687 | |||||||||
Net income applicable to noncontrolling interests | 75 | 75 | |||||||||
Dividends | (1,006) | (1,006) | |||||||||
Shares issued under employee plans | 645 | (170) | 94 | 815 | (94) | ||||||
Repurchases of common stock and employee tax withholdings | (1,709) | (1,709) | |||||||||
Net change in Accumulated other comprehensive income (loss) | 184 | 155 | 29 | ||||||||
Issuance of preferred stock | 994 | 1,000 | (6) | ||||||||
Other net decreases | (90) | (90) | |||||||||
Balance at at Jun. 30, 2017 | $ 79,967 | $ 8,520 | $ 20 | $ 23,140 | $ 56,325 | $ 2,945 | $ (2,488) | $ (6,691) | $ (2,945) | $ 1,141 | |
[1] | Debt valuation adjustment (“DVA”) represent s the change in the fair value resulting from fluctuations in the Firm’s credit spreads and other credit factors relate d to liabilities carried at fair value under the fair value option , primarily related to certain Long-term and Short-term borrowings. In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Ass ets and Financial Liabilities , a cumulative catch - up adjustment was recorded as of January 1, 2016 to move the cumulative unrealized DVA amount, net of noncontrolling interest s and tax, related to outstanding liabilities under the fair value option electio n from Retained earnings into Accumulated other comprehensive i ncome (loss) (“AOCI”). See Note 2 to the consolidated financial statements in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”) and Note 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 both consolidate and deconsolidate certain entities under the new guidance. See Note 2 to the consolidated financial statements in th e 2016 Form 10-K for further information. | ||||||||||
[3] | The cumulative adjustment relates to the adoption of the following accounting updates on January 1, 2017 : Improvements to Employee Share-Based Payment Accounting , for which the Firm recorded a cumulative catch-up adjustment to reflect its election to account for forfeitures as they occur (see Note 2 for further information) ; and Intra-Entity Transfers of Assets Other Than Inventory , for which the Firm recorded a c umulative catch-up adjustment to reflect the tax impact from an intercompany sale of assets . |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statements (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | ||
Net income | $ 3,762 | $ 2,803 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
(Income) loss from equity method investments | 0 | (1) |
Compensation payable in common stock and options | 518 | 492 |
Depreciation and amortization | 889 | 879 |
Net gain on sale of available-for-sale securities | (16) | (82) |
Impairment charges | 6 | 67 |
Provision for credit losses on lending activities | 25 | 131 |
Other operating adjustments | (148) | 218 |
Changes in assets and liabilities: | ||
Trading assets, net of Trading liabilities | (18,050) | (333) |
Securities borrowed | (1,486) | 11,135 |
Securities loaned | 1,018 | (2,117) |
Customer and other receivables and other assets | (2,336) | (10,537) |
Customer and other payables and other liabilities | 5,732 | 9,949 |
Securities purchased under agreements to resell | 4,547 | (9,932) |
Securities sold under agreements to repurchase | (3,931) | 13,636 |
Net cash provided by (used for) operating activities | (9,470) | 16,308 |
Proceeds from (payments for): | ||
Other assets-Premises, equipment and software, net | (723) | (645) |
Changes in loans, net | (5,326) | (4,724) |
Investment securities: | ||
Purchases | (8,418) | (30,700) |
Proceeds from sales | 13,533 | 20,274 |
Proceeds from paydowns and maturities | 3,668 | 3,507 |
Other investing activities | (39) | (126) |
Net cash provided by (used for) investing activities | 2,695 | (12,414) |
Net proceeds from (payments for): | ||
Short-term borrowings | (25) | (1,293) |
Noncontrolling interests | (35) | (43) |
Other secured financings | 4,272 | (69) |
Deposits | (10,950) | (3,341) |
Proceeds from: | ||
Derivatives financing activities | 73 | 0 |
Issuance of preferred stock, net of issuance costs | 994 | 0 |
Issuance of long-term borrowings | 33,522 | 20,628 |
Payments for: | ||
Long-term borrowings | (17,796) | (15,900) |
Derivatives financing activities | (48) | (120) |
Repurchases of common stock and employee tax withholdings | (1,709) | (1,629) |
Cash dividends | (954) | (791) |
Other financing activities | 21 | 0 |
Net cash provided by (used for) financing activities | 7,365 | (2,558) |
Effect of exchange rate changes on cash and cash equivalents | 688 | 714 |
Net increase in cash and cash equivalents | 1,278 | 2,050 |
Cash and cash equivalents, at beginning of period | 43,381 | 54,083 |
Cash and cash equivalents, at end of period | 44,659 | 56,133 |
Cash and cash equivalents include: | ||
Cash and due from banks | 25,008 | 27,597 |
Interest bearing deposits with banks | 19,651 | 28,536 |
Cash and cash equivalents, at end of period | 44,659 | 56,133 |
Supplemental Disclosure of Cash Flow Information | ||
Cash payments for interest | 1,922 | 1,082 |
Cash payments for income taxes, net of refunds | $ 732 | $ 340 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
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 Company”) together with its consolidated subsidiaries. A description of the clients and principal products and services of each of the Firm ’s business segments is as follo ws: Institutional Securities provides investment banking, sales and trading, lending and other services to corporations, governments, financial institutions, and high to ultra-high net worth clients. Investment banking services consist of capital raising and financial advisory services, including services relating to the underwriting of debt, equity and other securities, as well as advice on mergers and acquisitions, restructurings, real estate and project finance. Sales and trading services include sales , financing and market-making activities in equity and fixed income products, including prime brokerage services, global macro, credit and commodities products. Lending services include originating and/or purchasing corporate loans, commercial and resident ial mortgage lending, asset-backed lending, financing extended to equities and commodities customers, and loans to municipalities. Other services include investment and research activities. Wealth Management provides a comprehensive array of financial ser vices and solutions to individual investors and small to medium-sized businesses/institutions covering brokerage and investment advisory services, financial and wealth planning services, annuity and insurance products, credit and other lending products, ba nking and retirement plan services. Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products include equity, fixed income, liquidity and alternative/other products. Institutional clients include defined benefit/defined contribution plans , foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are serviced through intermediaries, including affiliated and non-affiliated distributors. Basis of Financial Information The unaud ited consolidated financial statements (“consolidated financial statements”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) , which require the Firm to make estimates and assumptions re garding 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 fi nancial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its consolidated financial statements are prudent and reasonable. Actual results could differ materially from these estimates. Intercompany bala nces and transactions have been eliminated. Certain reclassifications have been made to prior periods to conform to the current presentation. The accompanying consolidated financial statements should be read in conjunction with the Firm’s consolidated financial statements and notes thereto included in the 2016 Form 10-K. Certain footnote disclosures included in the 2016 Form 10-K have been condensed or omitted f rom these consolidated financial statements as they are not 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 noncontrolling interests. The net income attributable to noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the consolidated income statements . The portion of shareholders’ equity 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 involvement with VIEs and its significant regulated U.S. and international subsidiaries, see Notes 1 and 2 to the consolidated financial statements in the 2016 Form 10-K. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
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 2016 Form 10-K. During the six months ended June 30, 2017 (“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 update on January 1, 2017. Improvements to Employee Share-Based Payme nt Accounting . This accounting update simplifies the accounting for employee share-based payments, including the recognition of forfeitures, the classification of income tax consequences, and the classification within the consolidated cash flow statements. Beginning in 2017, the income tax con sequences related to share-based payments are required to be recognized in Provision for income taxes in the consolidated income statements upon the conversion of employee share-based awards instead of additional paid-in capital. The impact of the income tax consequences upon conversion of the awards may be either a benefit or a provision. Conversion of employee share-based awards to Firm shares will primarily occur in the first quarter of ea ch year. The impact of recognizing excess tax benefits upon conversion of awards in the quarter in which the accounting update was adopted (three months ended March 31, 2017) was a $ 112 million benefit to Provision for income taxes. The classification of c ash flows from excess tax benefits was moved from the financing section to the operating section of the consolidated cash flow statements, and was applied on a retrospective basis. In addition, this accounting update permits an entity to elect whether to continue to estimate the total forfeitures, or to account for forfeitures on an actual basis as they occur. The Firm has elected to account for forfeitures on an actual basis as they occur. This change is required to be applied using a modified retrospecti ve approach, and upon adoption, the Firm recorded a cumulative catch-up a djustment, decreasing Retained e arnings by approximately $ 30 million net of tax, increasing A dditional paid-in capital by approximately $ 45 million and increasing deferred tax assets by approximately $ 15 million . |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures | |
Fair Value Disclosures | 3. Fair Value s Fair Value Measurement Assets and Liabilities Measured at Fair Value on a Recurring Basis At June 30, 2017 $ in millions Level 1 Level 2 Level 3 Netting 4 Total Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 27,473 $ — $ — $ — $ 27,473 U.S. agency securities 2,148 25,832 — — 27,980 Total U.S. government and agency securities 29,621 25,832 — — 55,453 Other sovereign government obligations 1 19,553 5,382 100 — 25,035 Corporate and other debt: State and municipal securities — 2,572 9 — 2,581 Residential mortgage-, commercial mortgage- and asset- backed securities — 2,564 264 — 2,828 Corporate bonds — 15,338 449 — 15,787 Collateralized debt and loan obligations — 305 58 — 363 Loans and lending commitments 2 — 4,361 4,864 — 9,225 Other debt — 2,269 186 — 2,455 Total corporate and other debt — 27,409 5,830 — 33,239 Corporate equities 3 127,252 394 500 — 128,146 Securities received as collateral 14,402 6 — — 14,408 Derivative and other contracts: Interest rate 623 254,677 1,850 — 257,150 Credit — 9,049 423 — 9,472 Foreign exchange 100 54,895 62 — 55,057 Equity 803 41,506 3,073 — 45,382 Commodity and other 1,647 6,705 4,071 — 12,423 Netting 4 (2,976) (297,356) (2,360) (46,652) (349,344) Total derivative and other contracts 197 69,476 7,119 (46,652) 30,140 Investments 5 305 243 946 — 1,494 Physical commodities — 134 — — 134 Total trading assets 5 191,330 128,876 14,495 (46,652) 288,049 Investment securities— AFS 22,018 28,470 — — 50,488 Securities purchased under agreements to resell — 102 — — 102 Intangible assets — 3 — — 3 Total assets at fair value 6 $ 213,348 $ 157,451 $ 14,495 $ (46,652) $ 338,642 At June 30, 2017 $ in millions Level 1 Level 2 Level 3 Netting 4 Total Liabilities at Fair Value Deposits $ — $ 51 $ 79 $ — $ 130 Short-term borrowings — 582 — — 582 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 16,142 — — — 16,142 U.S. agency securities 439 84 — — 523 Total U.S. government and agency securities 16,581 84 — — 16,665 Other sovereign government obligations 1 25,411 1,118 — — 26,529 Corporate and other debt: Corporate bonds — 6,653 13 — 6,666 Other debt — 316 2 — 318 Total corporate and other debt — 6,969 15 — 6,984 Corporate equities 3 36,338 81 27 — 36,446 Obligation to return securities received as collateral 21,471 9 1 — 21,481 Derivative and other contracts: Interest rate 551 233,943 880 — 235,374 Credit — 9,677 728 — 10,405 Foreign exchange 35 58,070 60 — 58,165 Equity 699 44,996 1,980 — 47,675 Commodity and other 1,847 6,757 2,562 — 11,166 Netting 4 (2,976) (297,356) (2,360) (33,388) (336,080) Total derivative and other contracts 156 56,087 3,850 (33,388) 26,705 Total trading liabilities 99,957 64,348 3,893 (33,388) 134,810 Securities sold under agreements to repurchase — 590 148 — 738 Other secured financings — 5,487 244 — 5,731 Long-term borrowings 67 40,513 2,646 — 43,226 Total liabilities at fair value 6 $ 100,024 $ 111,571 $ 7,010 $ (33,388) $ 185,217 At December 31, 2016 $ in millions Level 1 Level 2 Level 3 Netting 4 Total Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 25,457 $ — $ — $ — $ 25,457 U.S. agency securities 2,122 20,392 74 — 22,588 Total U.S. government and agency securities 27,579 20,392 74 — 48,045 Other sovereign government obligations 14,005 5,497 6 — 19,508 Corporate and other debt: State and municipal securities — 2,355 250 — 2,605 Residential mortgage-, commercial mortgage- and asset-backed securities — 1,691 217 — 1,908 Corporate bonds — 11,051 232 — 11,283 Collateralized debt and loan obligations — 602 63 — 665 Loans and lending commitments 2 — 3,580 5,122 — 8,702 Other debt — 1,360 180 — 1,540 Total corporate and other debt — 20,639 6,064 — 26,703 Corporate equities 3 117,857 333 445 — 118,635 Securities received as collateral 13,717 19 1 — 13,737 Derivative and other contracts: Interest rate 1,131 300,406 1,373 — 302,910 Credit — 11,727 502 — 12,229 Foreign exchange 231 74,921 13 — 75,165 Equity 1,185 35,736 1,708 — 38,629 Commodity and other 2,808 6,734 3,977 — 13,519 Netting 4 (4,378) (353,543) (1,944) (51,381) (411,246) Total derivative and other contracts 977 75,981 5,629 (51,381) 31,206 Investments 5 237 197 958 — 1,392 Physical commodities — 112 — — 112 Total trading assets 5 174,372 123,170 13,177 (51,381) 259,338 Investment securities— AFS 29,120 34,050 — — 63,170 Securities purchased under agreements to resell — 302 — — 302 Intangible assets — 3 — — 3 Total assets at fair value 6 $ 203,492 $ 157,525 $ 13,177 $ (51,381) $ 322,813 At December 31, 2016 $ in millions Level 1 Level 2 Level 3 Netting 4 Total Liabilities at Fair Value Deposits $ — $ 21 $ 42 $ — $ 63 Short-term borrowings — 404 2 — 406 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 10,745 — — — 10,745 U.S. agency securities 891 61 — — 952 Total U.S. government and agency securities 11,636 61 — — 11,697 Other sovereign government obligations 20,658 2,430 — — 23,088 Corporate and other debt: Corporate bonds — 5,572 34 — 5,606 Other debt — 549 2 — 551 Total corporate and other debt — 6,121 36 — 6,157 Corporate equities 3 37,611 29 34 — 37,674 Obligation to return securities received as collateral 20,236 25 1 — 20,262 Derivative and other contracts: Interest rate 1,244 285,379 953 — 287,576 Credit — 12,550 875 — 13,425 Foreign exchange 17 75,510 56 — 75,583 Equity 1,162 37,828 1,524 — 40,514 Commodity and other 2,663 6,845 2,377 — 11,885 Netting 4 (4,378) (353,543) (1,944) (39,803) (399,668) Total derivative and other contracts 708 64,569 3,841 (39,803) 29,315 Physical commodities — 1 — — 1 Total trading liabilities 90,849 73,236 3,912 (39,803) 128,194 Securities sold under agreements to repurchase — 580 149 — 729 Other secured financings — 4,607 434 — 5,041 Long-term borrowings 47 36,677 2,012 — 38,736 Total liabilities at fair value 6 $ 90,896 $ 115,525 $ 6,551 $ (39,803) $ 173,169 AFS—Available for sale At June 30, 2017 , the Firm transferred from Level 2 to Level 1 $ 1.3 billion and $ 1.8 billion of Trading assets-Other sovereign government obligations and Trading liabilities-Other sovereign government obligations, respectively, due to increased market activity in these instruments. At June 30, 2017 , l oans held at fair value consisted of $ 6,775 million of corporate loans, $ 662 million of residential real estate loans and $ 1,788 million of wholesale real estat e loans. At December 31, 2016, l oans held at fair value consisted of $ 7,2 17 mil lion of corporate loans, $ 966 million of residential real estate loans and $ 519 million of wholesale real estate loans. For trading purposes, the Firm holds or sells short equity securities issued by entities in diverse industries and of varying sizes. Fo r 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 “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. Amounts exclude certain investments that are measured at fair value using the net asset value (“ NAV ”) per share, which are not classified in the fair value hierarchy. For additional disclosure about such investments, see “Fair Value of Investments Measured at N AV ” herein . Amounts exclude the unsettled fair value on long futures contracts of $ 852 million at June 30, 2017 and $ 784 million at December 31, 2016 included in Customer and other receivables in the consolidated balance sheets and unsettled fair value of short futu re s contracts of $ 425 million at June 30, 2017 and $ 174 million at December 31, 2016 in Customer and other payables in the consolidated balance sheets. These contracts are primarily: classified as Level 1 in the fair value hierarchy, actively traded, and valued based on quoted prices from the exchange. 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 2016 Form 10-K. During the current quarter there were no significant updates made to the Firm’s valuation techniques. Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basi s The following tables present additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended June 30, 2017 (“current quarter”), the three months ended June 30, 2016 (“prior year quarter”), the current year period and the six months ended June 30, 2016 (“prior year period”) . Level 3 instruments may be hedged with instruments cla ssified in Level 1 and Level 2. As a result, the realized and unrealized gains (losses) fo r assets and liabilities within the Level 3 category presented in the following tables do not reflect the related realized and unrealized gains (losses) on hedging instruments that hav e 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 period that were attributable to both observable and unobservable i nputs . Total realized and unrealized gains (losses) are primarily included in Trading revenues in the consolidated income statements . Roll-forward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis $ in millions Beginning Balance at March 31, 2017 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at June 30, 2017 Unrealized Gains (Losses) at June 30, 2017 Assets at Fair Value Trading assets: U.S. agency securities $ 42 $ — $ — $ — $ — $ (42) $ — $ — Other sovereign government obligations 65 — 87 (52) — — 100 — Corporate and other debt: State and municipal securities 55 3 3 (52) — — 9 — Residential mortgage-, commercial mortgage- and asset backed securities 216 36 32 (44) (5) 29 264 8 Corporate bonds 445 2 144 (161) — 19 449 (2) Collateralized debt and loan obligations 78 (2) 5 (23) (1) 1 58 (2) Loans and lending commitments 4,479 27 1,242 (417) (581) 114 4,864 11 Other debt 194 33 57 (108) — 10 186 30 Total corporate and other debt 5,467 99 1,483 (805) (587) 173 5,830 45 Corporate equities 309 8 101 (59) — 141 500 9 Securities received as collateral 1 — — (1) — — — — Net derivative and other contracts 3 : Interest rate 298 35 28 (27) 637 (1) 970 58 Credit (351) 28 — — 16 2 (305) 24 Foreign exchange (71) 53 1 (1) 22 (2) 2 64 Equity 217 185 677 (171) 80 105 1,093 189 Commodity and other 1,503 154 3 — (108) (43) 1,509 79 Total net derivative and other contracts 1,596 455 709 (199) 647 61 3,269 414 Investments 961 11 20 (25) 4 (25) 946 7 Liabilities at Fair Value Deposits $ 56 $ — $ — $ 23 $ — $ — $ 79 $ — Trading liabilities: Corporate and other debt: Corporate bonds 34 — (135) 124 — (10) 13 (1) Other debt 2 — — — — — 2 — Total corporate and other debt 36 — (135) 124 — (10) 15 (1) Corporate equities — (12) (34) 44 — 5 27 (11) Obligation to return securities received as collateral 2 — (2) 1 — — 1 — Securities sold under agreements to repurchase 148 — — — — — 148 — Other secured financings 203 (4) — 38 (1) — 244 (4) Long-term borrowings 2,092 (45) — 694 (145) (40) 2,646 (49) $ in millions Beginning Balance at March 31, 2016 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at June 30, 2016 Unrealized Gains (Losses) at June 30, 2016 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-, commercial mortgage- and asset backed securities 355 (4) 7 (87) — 84 355 (14) 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 3 : Interest rate 169 (159) 2 (7) 42 (282) (235) (157) Credit (723) 65 1 — 93 (550) (1,114) 53 Foreign exchange 126 (58) — — (94) 25 (1) (47) Equity (1,832) 168 50 (140) 263 18 (1,473) (106) Commodity and other 1,200 211 5 (4) (88) (37) 1,287 130 Total net derivative and other contracts (1,060) 227 58 (151) 216 (826) (1,536) (127) 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) Other debt 5 1 (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 $ in millions Beginning Balance at December 31, 2016 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at June 30, 2017 Unrealized Gains (Losses) at June 30, 2017 Assets at Fair Value Trading assets: U.S. agency securities $ 74 $ (1) $ — $ (240) $ — $ 167 $ — $ — Other sovereign government obligations 6 — 98 (4) — — 100 — Corporate and other debt: State and municipal securities 250 3 3 (77) — (170) 9 — Residential mortgage-, commercial mortgage- and asset backed securities 217 44 78 (83) (16) 24 264 27 Corporate bonds 232 (2) 241 (98) — 76 449 (1) Collateralized debt and loan obligations 63 (3) 11 (12) (2) 1 58 (3) Loans and lending commitments 5,122 89 1,596 (1,002) (1,146) 205 4,864 41 Other debt 180 36 38 (115) — 47 186 34 Total corporate and other debt 6,064 167 1,967 (1,387) (1,164) 183 5,830 98 Corporate equities 445 10 97 (158) — 106 500 15 Securities received as collateral 1 — — (1) — — — — Net derivative and other contracts 3 : Interest rate 420 (66) 47 (27) 652 (56) 970 (55) Credit (373) 1 — — 62 5 (305) (13) Foreign exchange (43) 23 1 (1) 8 14 2 43 Equity 184 118 758 (158) 121 70 1,093 200 Commodity and other 1,600 104 9 (19) (188) 3 1,509 (76) Total net derivative and other contracts 1,788 180 815 (205) 655 36 3,269 99 Investments 958 19 82 (28) (63) (22) 946 11 Liabilities at Fair Value Deposits $ 42 $ (1) $ — $ 36 $ — $ — $ 79 $ (1) Short-term borrowings 2 — — — (2) — — — Trading liabilities: Corporate and other debt: Corporate bonds 34 — (164) 129 — 14 13 — Other debt 2 — — — — — 2 — Total corporate and other debt 36 — (164) 129 — 14 15 — Corporate equities 34 — (63) 5 — 51 27 — Obligation to return securities received as collateral 1 — — — — — 1 — Securities sold under agreements to repurchase 149 1 — — — — 148 1 Other secured financings 434 (23) — 52 (221) (44) 244 (16) Long-term borrowings 2,012 (104) — 981 (286) (165) 2,646 (95) $ in millions Beginning Balance at December 31, 2015 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at June 30, 2016 Unrealized Gains (Losses) at June 30, 2016 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-, commercial mortgage- and asset backed securities 438 (36) 26 (170) — 97 355 (33) 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 3 : Interest rate 260 305 3 (21) (60) (722) (235) 205 Credit (844) (343) 1 — 153 (81) (1,114) (360) Foreign exchange 141 (109) — — (201) 168 (1) (82) Equity (2,031) (321) 71 (184) 1,121 (129) (1,473) (434) Commodity and other 1,050 297 7 (4) (176) 113 1,287 210 Total net derivative and other contracts (1,424) (171) 82 (209) 837 (651) (1,536) (461) 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) Loan originations and consolidations of VIEs are included in purchases and deconsolidations of VIEs are included in settlements. Amounts related to entering into Net derivatives and other contracts, Deposits, Short-term borrowings, Other secured financings and Long-term borrowings primarily represent issuances. Amounts for other line items primarily represent sales. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Deriv ative and other contracts . Significant Unobservable Inputs Used in Recurring and Nonrecurring 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 and nonrecurring basis with a significant Level 3 balance. The level of aggregation and breadth of products cause the range of inputs to be wide and not evenly distributed across the inventory. Further, the range of unobservable inputs may differ across firms in the financial services industry because of diversity in the types of products included in each firm’s inventory. For qualitative information on the sensitivity of the fair value measurements to changes in the significant unobservable inputs , see Note 3 to the consolidated financial statements in the 2016 Form 10-K . There are no predictable relationships between multiple significant unobservable inputs attributable to a given valuation technique. A single amount is dis closed when there is no significant difference between the minimum, maximum and average (weighted average or simple average / median ). Valuation Techniques and Sensitivity of Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Predominant Valuation Techniques/ Significant Unobservable Inputs Range (Weighted Averages or Simple Averages/Median) 1 $ in millions At June 30, 2017 At December 31, 2016 Recurring Fair Value Measurement Assets at Fair Value U.S. agency securities ( $- and $74) Comparable pricing: Comparable bond price N/A 96 to 105 points (102 points) Other sovereign government obligations ($100 and $6) Comparable pricing: Comparable bond price 92 to 99 points (96 points) N/M State and municipal securities ($9 and $250) Comparable pricing: Comparable bond price N/M 53 to 100 points (91 points) Residential mortgage-, commercial mortgage- and asset-backed securities ($264 and $217) Comparable pricing: Comparable bond price 0 to 95 points (24 points) 0 to 86 points (27 points) Corporate bonds ($449 and $232) Comparable pricing : Comparable bond price 2 to 133 points (87 points) 3 to 130 points (70 points) Option model: At the money volatility 15% to 34% (24%) 23% to 33% (30%) Collateralized debt and loan obligations ($58 and $63) Comparable pricing : Comparable bond price 0 to 65 points (35 points) 0 to 103 points (50 points) Correlation model: Credit correlation 42% to 49% (44%) N/M Loans and lending commitments ($4,864 and $5,122) Corporate loan model: Credit spread N/M 402 to 672 bps (557 bps) Expected recovery: Asset coverage 36% to 100% (85%) 43% to 100% (83%) Option model: Volatility skew -1% N/M Margin loan model : Discount rate 1% to 5% (2%) 2% to 8% (3%) Volatility skew 10% to 32% (18%) 21% to 63% (33%) Comparable pricing: Comparable loan price 55 to 104 points (95 points) 45 to 100 points (84 points) Discounted cash flow: Implied weighted average cost of capital N/M 5% Capitalization rate N/M 4% to 10% (4%) Other debt ($186 and $180) Option model: At the money volatility 17% to 52% (44%) 16% to 52% (52%) Discounted cash flow: Discount rate 9% to 12% (11%) 7% to 12% (11%) Comparable pricing: Comparable loan price N/M 1 to 74 points (23 points) Corporate equities ($500 and $445) Comparable pricing: Comparable equity price 100% 100% Net derivative and other contracts 2 : Interest rate ($970 and $420) Option model : Interest rate - Foreign exchange correlation N/M 28% to 58% (44% / 43%) Interest rate volatility skew 26% to 94% (42% / 41%) 19% to 117% (55% / 56%) Interest rate quanto correlation N/M -17% to 31% (1% / -5%) Interest rate curve correlation N/M 28% to 96% (68% / 72%) Inflation volatility 24% to 63% (44% / 41%) 23% to 55% (40% / 39%) Interest rate - inflation correlation -48% to -27% (-36% / -34%) N/M Interest rate curve 1% N/M Credit ($(305) and $(373)) Comparable pricing: Cash synthetic basis 4 to 6 points (5 points) 5 to 12 points (11 points) Comparable bond price N/M 0 to 70 points (23 points) Correlation model : Credit correlation 37% to 78% (48%) 32% to 70% (45%) Foreign exchange 3 ( $2 and $(43)) Option model: Interest rate - Foreign exchange correlation 27% to 54% (44% / 44%) 28% to 58% (44% / 43%) Interest rate volatility skew 29% to 102% (47% / 46%) 34% to 117% (55% / 56%) Interest rate quanto correlation N/M -17% to 31% (1% / -5%) Equity 3 ( $1,093 and $184) Option model: At the money volatility 6% to 57% (33%) 7% to 66% (33%) Volatility skew -3% to 1% (-1%) -4% to 0% (-1%) Equity - Equity correlation 5% to 99% (78%) 25% to 99% (73%) Equity - Foreign exchange correlation -70% to 9% (-30%) -63% to 30% (-43%) Equity - Interest rate correlation -7% to 52% (23% / 24%) -8% to 52% (12% / 4%) Predominant Valuation Techniques/ Significant Unobservable Inputs Range (Weighted Averages or Simple Averages/Median) 1 $ in millions At June 30, 2017 At December 31, 2016 Commodity and other($1,509 and $1,600) Option model: Forward power price $6 to $87 ($30) per MWh $7 to $90 ($32) per MWh Commodity volatility 6% to 62% (17%) 6% to 130% (18%) Cross-commodity correlation 5% to 99% (92%) 5% to 99% (92%) Investments ($946 and $958) Discounted cash flow: Implied weighted average cost of capital N/M 10% Exit multiple 10 times 10 to 24 times (11 times) Market approach: EBITDA multiple 8 to 24 times (13 times) 6 to 24 times (12 times) Comparable pricing : Comparable equity price 75% to 100% (90%) 75% to 100% (93%) Liabilities at Fair Value Deposits ($79 and $42) Option model: At the money volatility 15% to 50% (24%) N/M Volatility skew -1% to 0% (-1%) N/M Securities sold under agreements to repurchase ($148 and $149) Discounted cash flow: Funding spread 131 to 145 bps (136 bps) 118 to 127 bps (121 bps) Other secured financings ($244 and $434) Discounted cash flow: Funding spread 48 to 80 bps (64 bps) 63 to 92 bps (78 bps) Option model: Volatility skew -1% -1% At the money volatility 10% to 40% (26%) N/M Discounted cash flow : Discount rate N/M 4% Long-term borrowings ($2,646 and $2,012) Option model : At the money volatility 6% to 42% (26%) 7% to 42% (30%) Volatility skew -3% to 1% (-1%) -2% to 0% (-1%) Equity - Equity correlation 36% to 98% (71%) 35% to 99% (84%) Equity - Foreign exchange correlation -72% to 13% (-29%) -63% to 13% (-40%) Option model : Interest rate volatility skew 26% to 94% (42% / 41%) 25% Equity volatility discount 9% to 12% (10% / 11%) 7% to 11% (10% / 10%) Comparable pricing: Comparable equity price 100% N/M Nonrecurring Fair Value Measurement Assets at Fair Value Loans ($1,277 and $2,443) Corporate loan model: Credit spread 90 to 563 bps (273 bps) 90 to 487 bps (208 bps) Expected recovery: Asset coverage 73% to 95% (84%) 73% to 99% (97%) bps—Basis points . One basis point equals 1/100 th of 1%. Point s— Percentage of par MWh — Megawatt hours EBITDA— Earnings before interest, taxes, depreciation and amortization N/A—Not Applicable N/M—Not Meaningful 1. A mounts represent weighted averages except where simple averages and the median of the inputs are provided when more relevant . 2. Credit valuation adjustment (“CVA”) and funding valuation adjustments (“FVA”) are included in the balance but excluded from the Valuation Technique(s) and Significant Unobservable Inputs in the previous table. CVA is a Level 3 input when the underlying counterparty credit curve is unobservable. FVA is a Level 3 input in its entirety given the lack of observability of funding spreads in the principal market . 3. Includes derivative contracts with multiple r isks ( i.e. , hybrid products). For a description of the Firm’s significant unobservable inputs for all major categories of assets and liabilities, see Note 3 to the consolidated financial statements in the 2016 Form 10-K. During the current quarter there were no significant updates made to the Firm’s significant unobservable inputs. Fair Value of Investments Measured at N AV For a description of the Firm’s investments in private equity funds, real estate funds and hedge funds measured at fair value based on NAV, see Note 3 to the consolidated financi al statements in the 201 6 Form 10-K. Investments in Certain Funds Measured at NAV per Share At June 30, 2017 At December 31, 2016 $ in millions Fair Value Commitment Fair Value Commitment Private equity funds $ 1,588 $ 388 $ 1,566 $ 335 Real estate funds 1,050 157 1,103 136 Hedge funds 115 18 147 4 Total $ 2,753 $ 563 $ 2,816 $ 475 Nonredeemable Funds by Contractual Maturity Fair Value at June 30, 2017 $ in millions Private Equity Real Estate Less than 5 years $ 297 $ 80 5-10 years 745 644 Over 10 years 546 326 Total $ 1,588 $ 1,050 Restrictions Investments in hedge funds may be subject to initial period lock-up or gate provision s. A lock-up provision is a provision that provides that during a certain initial period an investor may not make a withdrawal from the fund. A gate provision restrict s the amount of redemption that an investor can demand on any redemption date. Hedge Funds Redemption Frequency Fair Value At June 30, 2017 Quarterly 57% Every six months —% Greater than six months 21% Subject to lock-up provisions 1 22% Percentage of hedge fund investments that cannot be redeemed due to a gate provision 2 23% R emaining restriction period for these investments was primarily over three year s. Gate provision has been imposed by the he dge fund manager primarily for indefinite periods. The redemption notice periods for hedge funds were primarily greater than six months . Fair Value Option The Firm elected the fair value option for certain eligible instruments that are risk managed on a fair value basis to mitigate income statement volatility caused by measurement basis differences between the elected instruments and their associated risk management transactions or to eliminate c omplexities of applying certain accounting models. Earnings Impact of Instruments under the Fair Value Option Interest Trading Income $ in millions Revenues (Expense) Net Revenues Three Months Ended June 30, 2017 Securities purchased under agreements to resell $ (1) $ 1 $ ─ Deposits 1 ─ ─ ─ Short-term borrowings 1 6 (1) 5 Securities sold under agreements to repurchase 1 (3) (4) (7) Long-term borrowings 1 (901) (111) (1,012) Interest Trading Income $ in millions Revenues (Expense) Net Revenues 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, 2017 Securities purchased under agreements to resell $ (1) $ 2 $ 1 Deposits 1 (1) ─ (1) Short-term borrowings 1 (9) (1) (10) Securities sold under agreements to repurchase 1 (1) (8) (9) Long-term borrowings 1 (2,511) (230) (2,741) 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) 1. Gains (losses) in all periods 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. The amounts in the previous table are included within Net revenues and do not reflect any gains or losses on related hedging instruments. In addition to the amounts in the previous table, as discussed in Note 2 to the consolidated financial statements in the 2016 Form 10-K, instruments within Trading assets or Trading liabilities are measured at fair value. Gains (Losses) Due to Changes in Instrument-Specific Credit Risk Three Months Ended June 30, 2017 2016 $ in millions Trading Revenues OCI Trading Revenues OCI Short-term and long-term borrowings 1 $ (4) $ (281) $ ─ $ 226 Securities sold under agreements to repurchase 1 ─ ─ ─ (1) Loans and other debt 2 48 ─ (14) ─ Lending commitments 3 ─ ─ 2 ─ Six Months Ended June 30, 2017 2016 $ in millions Trading Revenues OCI Trading Revenues OCI Short-term and long-term borrowings 1 $ (8) $ (267) $ 41 $ 545 Securities sold under agreements to repurchase 1 ─ (3) ─ 3 Loans and other debt 2 45 ─ (114) ─ Lending commitments 3 ─ ─ 3 ─ $ in millions June 30, 2017 December 31, 2016 Cumulative pre-tax DVA gain (loss) recognized in AOCI $ (1,191) $ (921) OCI—Other comprehensive income (loss) 1. Unrealized DVA gains (losses) are recorded in OCI and when such gains (losses) are realized they are recorded in Trading revenues . Se e Note 2 to the consolidated financial statements in the 2016 Form 10-K and Note 14 for further information. 2. Loans and othe r debt instrument-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses, such as those due to changes in interest rates. 3. Gains (losses) on lending commitments were generally determined based on the di fferen ce between estimated expected client yields and contractual yields at each respective period-end. Short-Term and Long-Term Borrowings Measured at Fair Value on a Recurring Basis At At June 30, December 31, $ in millions 2017 2016 Business Unit Responsible for Risk Management Equity $ 23,605 $ 21,066 Interest rates 18,502 16,051 Foreign exchange 760 1,114 Credit 709 647 Commodities 232 264 Total $ 43,808 $ 39,142 Net Difference of Contractual Principal Amount Over Fair Value At At June 30, December 31, $ in millions 2017 2016 Loans and other debt 1 $ 12,986 $ 13,495 Loans 90 or more days past due and/or on nonaccrual status 1 11,337 11,502 Short-term and long-term borrowings 2 621 720 1. The majority of the difference between principal and fair value amounts for loans and other debt relates to distressed debt positions purchased 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 a reference price or index . Fair Value Loans on Nonaccrual Status At At June 30, December 31, $ in millions 2017 2016 Nonaccrual loans $ 1,326 $ 1,536 Nonaccrual loans 90 or more days past due $ 796 $ 787 The previous tables exclude non-recourse debt from consolidated VIEs, liabilities related to failed sales of financial assets, pledged commodities and other liabilities that have specified assets attributable to them. Assets and Liabilities M easured at Fair Value on a Nonr ecurring Basis Curren |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 4. Derivative Instruments and Hedging Activities Derivative Fair Values At June 30, 2017 Assets $ in millions Bilateral OTC Cleared OTC 1 Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 1,547 $ 937 $ — $ 2,484 Foreign exchange contracts 48 8 — 56 Total 1,595 945 — 2,540 Not designated as accounting hedges 2 Interest rate contracts 182,333 72,140 193 254,666 Credit contracts 7,282 2,190 — 9,472 Foreign exchange contracts 54,357 544 100 55,001 Equity contracts 24,832 — 20,550 45,382 Commodity and other contracts 10,197 — 2,226 12,423 Total 279,001 74,874 23,069 376,944 Total gross derivatives $ 280,596 $ 75,819 $ 23,069 $ 379,484 Amounts offset Counterparty netting (215,065) (71,178) (20,307) (306,550) Cash collateral netting (38,973) (3,821) — (42,794) Total in Trading assets $ 26,558 $ 820 $ 2,762 $ 30,140 Amounts not offset 3 Financial instruments collateral (11,213) — — (11,213) Other cash collateral (10) — — (10) Net amounts 4 $ 15,335 $ 820 $ 2,762 $ 18,917 Liabilities $ in millions Bilateral OTC Cleared OTC 1 Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 60 $ 757 $ — $ 817 Foreign exchange contracts 138 40 — 178 Total 198 797 — 995 Not designated as accounting hedges 2 Interest rate contracts 166,210 68,206 141 234,557 Credit contracts 8,132 2,273 — 10,405 Foreign exchange contracts 57,314 625 48 57,987 Equity contracts 27,653 — 20,022 47,675 Commodity and other contracts 8,881 — 2,285 11,166 Total 268,190 71,104 22,496 361,790 Total gross derivatives $ 268,388 $ 71,901 $ 22,496 $ 362,785 Amounts offset Counterparty netting (215,065) (71,178) (20,307) (306,550) Cash collateral netting (29,136) (394) — (29,530) Total in Trading liabilities $ 24,187 $ 329 $ 2,189 $ 26,705 Amounts not offset 3 Financial instruments collateral (6,276) — (168) (6,444) Other cash collateral (26) (58) — (84) Net amounts 4 $ 17,885 $ 271 $ 2,021 $ 20,177 At December 31, 2016 Assets $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 1,924 $ 1,049 $ — $ 2,973 Foreign exchange contracts 249 18 — 267 Total 2,173 1,067 — 3,240 Not designated as accounting hedges 5 Interest rate contracts 200,336 99,217 384 299,937 Credit contracts 9,837 2,392 — 12,229 Foreign exchange contracts 73,645 1,022 231 74,898 Equity contracts 20,710 — 17,919 38,629 Commodity and other contracts 9,792 — 3,727 13,519 Total 314,320 102,631 22,261 439,212 Total gross derivatives $ 316,493 $ 103,698 $ 22,261 $ 442,452 Amounts offset Counterparty netting (243,488) (100,477) (19,607) (363,572) Cash collateral netting (45,875) (1,799) — (47,674) Total in Trading assets $ 27,130 $ 1,422 $ 2,654 $ 31,206 Amounts not offset 3 Financial instruments collateral (10,293) — — (10,293) Other cash collateral (124) — — (124) Net amounts 4 $ 16,713 $ 1,422 $ 2,654 $ 20,789 Liabilities $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 77 $ 647 $ — $ 724 Foreign exchange contracts 15 25 — 40 Total 92 672 — 764 Not designated as accounting hedges 5 Interest rate contracts 183,063 103,392 397 286,852 Credit contracts 11,024 2,401 — 13,425 Foreign exchange contracts 74,575 952 16 75,543 Equity contracts 22,531 — 17,983 40,514 Commodity and other contracts 8,303 — 3,582 11,885 Total 299,496 106,745 21,978 428,219 Total gross derivatives $ 299,588 $ 107,417 $ 21,978 $ 428,983 Amounts offset Counterparty netting (243,488) (100,477) (19,607) (363,572) Cash collateral netting (30,405) (5,691) — (36,096) Total in Trading liabilities $ 25,695 $ 1,249 $ 2,371 $ 29,315 Amounts not offset 3 Financial instruments collateral (7,638) — (585) (8,223) Other cash collateral (10) (1) — (11) Net amounts 4 $ 18,047 $ 1,248 $ 1,786 $ 21,081 Derivative Notionals At June 30, 2017 Assets $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 25 $ 36 $ — $ 61 Foreign exchange contracts 4 — — 4 Total 29 36 — 65 Not designated as accounting hedges 2 Interest rate contracts 3,928 7,275 3,184 14,387 Credit contracts 255 105 — 360 Foreign exchange contracts 1,779 60 10 1,849 Equity contracts 388 — 291 679 Commodity and other contracts 69 — 84 153 Total 6,419 7,440 3,569 17,428 Total gross derivatives $ 6,448 $ 7,476 $ 3,569 $ 17,493 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 2 $ 95 $ — $ 97 Foreign exchange contracts 5 1 — 6 Total 7 96 — 103 Not designated as accounting hedges 2 Interest rate contracts 3,671 5,901 1,236 10,808 Credit contracts 287 87 — 374 Foreign exchange contracts 1,869 62 23 1,954 Equity contracts 378 — 347 725 Commodity and other contracts 76 — 69 145 Total 6,281 6,050 1,675 14,006 Total gross derivatives $ 6,288 $ 6,146 $ 1,675 $ 14,109 At December 31, 2016 Assets $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 30 $ 38 $ — $ 68 Foreign exchange contracts 6 — — 6 Total 36 38 — 74 Not designated as accounting hedges 5 Interest rate contracts 3,586 6,224 2,586 12,396 Credit contracts 333 112 — 445 Foreign exchange contracts 1,580 52 13 1,645 Equity contracts 338 — 242 580 Commodity and other contracts 67 — 79 146 Total 5,904 6,388 2,920 15,212 Total gross derivatives $ 5,940 $ 6,426 $ 2,920 $ 15,286 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 2 $ 52 $ — $ 54 Foreign exchange contracts 1 1 — 2 Total 3 53 — 56 Not designated as accounting hedges 5 Interest rate contracts 3,462 6,087 897 10,446 Credit contracts 359 96 — 455 Foreign exchange contracts 1,557 48 14 1,619 Equity contracts 321 — 273 594 Commodity and other contracts 78 — 59 137 Total 5,777 6,231 1,243 13,251 Total gross derivatives $ 5,780 $ 6,284 $ 1,243 $ 13,307 OTC—Over–the-counter 1. Effective in the first quarter of 2017, the Chicago Mercantile Exchange (“CME”) amended its rulebook for cleared OTC derivatives, resulting in the characterization of variation margin transfers as settlement payments as opposed to cash posted as collateral. In the quarter of adoption, the cleared OTC gross derivative assets and liabilities, and related counterparty and cash collateral netting amounts in total decreased by approximately $ 13 billion and $ 20 billion , respectively. 2. Notional amounts include gross notionals related to open long and short f utures contracts of $ 2,765 billion and $ 732 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 852 million and $ 425 million is included i n Customer and other receivables and Customer and other payables, respectively, in the consolidated balance sheets. 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 offsetting accounting guidance. 4 . Amounts include transactions that are either not subject to master netting agreements or collateral agreements or are subjec t to such agreements but the Firm has not determined the agreements to be legally enforceable as follows: $ 3.3 billion of derivative assets and $ 3.5 billion of derivative liabilities at June 30, 2017 and $ 3.7 bil lion of derivative assets and $ 3.5 billion of derivative liabilities at December 31, 2016 . 5. Notional amounts include gross notionals re lated to open long and short futures contracts of $ 2,088 billion and $ 332 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 784 million and $ 174 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. For a discussion of the Firm’s deriva tive instruments and hedging activities, see Note 4 to the consolidated financial statements in the 2016 Form 10-K . Gains (Losses) on Fair Value Hedges Recognized in Interest Expense Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Derivatives $ 138 $ 969 $ (660) $ 3,119 Borrowings (213) (993) 495 (3,282) Total $ (75) $ (24) $ (165) $ (163) Gains (Losses) on Net Investment Hedges Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Foreign exchange contracts Effective portion—OCI $ (47) $ (112) $ (251) $ (336) Forward points excluded from hedge effectiveness testing—Interest income $ (9) $ (19) $ (19) $ (39) Trading Revenues by Product Type Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Interest rate contracts $ 451 $ 320 $ 1,045 $ 626 Foreign exchange contracts 197 362 432 599 Equity security and index contracts 1 1,818 1,615 3,459 2,945 Commodity and other contracts 110 20 299 (124) Credit contracts 355 429 931 765 Total $ 2,931 $ 2,746 $ 6,166 $ 4,811 1. Dividend income is included within equity security and index contracts. The previous table summarizes gains and losses included in Trading revenues in the consolidated income statements 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 its market-making and related risk management strategies. Accordingly, the trading reve nues presented in the previous 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. OTC Derivative Products—Trading Assets Counterparty Credit Rating and Remaining Maturity of OTC Derivative Assets Fair Value at June 30, 2017 1 Contractual Years to Maturity Total Derivative Assets $ in millions Less than 1 1-3 3-5 Over 5 Credit Rating 2 AAA $ 232 $ 308 $ 406 $ 3,168 $ 4,114 AA 1,357 1,913 2,336 10,841 16,447 A 6,487 5,123 4,342 18,625 34,577 BBB 3,417 2,685 2,001 12,737 20,840 Non-investment grade 2,753 2,104 3,070 2,247 10,174 Total $ 14,246 $ 12,133 $ 12,155 $ 47,618 $ 86,152 Fair Value at June 30, 2017 1 Total Derivative Assets Cross-Maturity and Cash Collateral Netting 3 Net Amounts Post-cash Collateral Net Amounts Post-collateral 4 $ in millions Credit Rating 2 AAA $ 4,114 $ (3,091) $ 1,023 $ 952 AA 16,447 (10,935) 5,512 2,756 A 34,577 (25,571) 9,006 5,118 BBB 20,840 (14,301) 6,539 4,908 Non-investment grade 10,174 (4,886) 5,288 2,421 Total $ 86,152 $ (58,784) $ 27,368 $ 16,155 Fair Value at December 31, 2016 1 Contractual Years to Maturity Total Derivative Assets $ in millions Less than 1 1-3 3-5 Over 5 Credit Rating 2 AAA $ 150 $ 428 $ 918 $ 2,931 $ 4,427 AA 3,177 2,383 2,942 10,194 18,696 A 9,244 6,676 5,495 21,322 42,737 BBB 4,423 3,085 2,434 13,023 22,965 Non-investment grade 2,283 1,702 1,722 1,794 7,501 Total $ 19,277 $ 14,274 $ 13,511 $ 49,264 $ 96,326 Fair Value at December 31, 2016 1 Total Derivative Assets Cross-Maturity and Cash Collateral Netting 3 Net Amounts Post-cash Collateral Net Amounts Post-collateral 4 $ in millions Credit Rating 2 AAA $ 4,427 $ (3,900) $ 527 $ 485 AA 18,696 (11,813) 6,883 4,114 A 42,737 (31,425) 11,312 6,769 BBB 22,965 (16,629) 6,336 4,852 Non-investment grade 7,501 (4,131) 3,370 1,915 Total $ 96,326 $ (67,898) $ 28,428 $ 18,135 1. Fair values shown represent the Fir m’s net exposure to counterparties related to its OTC derivative products. 2. Obligor credit ratings are determined internally 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 collateral rece ived 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. 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. Net Derivative Liabilities and Collat eral Posted $ in millions At June 30, 2017 At December 31, 2016 Net derivative liabilities with credit risk- related contingent features $ 19,335 $ 22,939 Collateral posted 14,672 17,040 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 Global Ratings (“ 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 scenarios based on the relevant contractual downgrade triggers. Incremental Collateral or Termination Payments upon Potential Future Ratings Downgrade $ in millions At June 30, 2017 1 One-notch downgrade $ 1,042 Two-notch downgrade 401 1. Amounts include $ 1,187 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 downgrades. 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 for these derivatives are banks, broker-dealers, and insurance and other financial institutions. For further information on credit derivatives and other credit contracts, see Note 4 to the consolidated financial statements in the 2016 Form 10-K. Protection Sold and Purchased with Credit Default Swaps At June 30, 2017 Protection Sold Protection Purchased $ in millions Notional Fair Value (Asset)/ Liability Notional Fair Value (Asset)/ Liability Credit default swaps Single name $ 195,821 $ (1,274) $ 207,973 $ 1,613 Index and basket 131,476 (48) 126,594 (113) Tranched index and basket 23,519 (408) 48,605 1,163 Total $ 350,816 $ (1,730) $ 383,172 $ 2,663 Single name and non-tranched index and basket with identical underlying reference obligations $ 323,765 — $ 330,349 — At December 31, 2016 Protection Sold Protection Purchased $ in millions Notional Fair Value (Asset)/ Liability Notional Fair Value (Asset)/ Liability Credit default swaps Single name $ 266,918 $ (753) $ 269,623 $ 826 Index and basket 130,383 374 122,061 (481) Tranched index and basket 32,429 (670) 78,505 1,900 Total $ 429,730 $ (1,049) $ 470,189 $ 2,245 Single name and non-tranched index and basket with identical underlying reference obligations $ 395,536 — $ 389,221 — Credit Ratings of Reference Obligation and Maturities of Credit Protection Sold At June 30, 2017 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability 1 Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Single name credit default swaps 2 Investment grade $ 57,174 $ 52,949 $ 26,353 $ 9,523 $ 145,999 $ (1,397) Non-investment grade 22,379 18,958 7,465 1,020 49,822 123 Total single name credit default swaps 79,553 71,907 33,818 10,543 195,821 (1,274) Index and basket credit default swaps 2 Investment grade 26,972 14,044 48,806 7,914 97,736 (999) Non-investment grade 27,129 7,037 13,807 9,286 57,259 543 Total index and basket credit default swaps 54,101 21,081 62,613 17,200 154,995 (456) Total credit default swaps sold $ 133,654 $ 92,988 $ 96,431 $ 27,743 $ 350,816 $ (1,730) Other credit contracts 27 — 13 129 169 4 Total credit derivatives and other credit contracts $ 133,681 $ 92,988 $ 96,444 $ 27,872 $ 350,985 $ (1,726) At December 31, 2016 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability 1 Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Single name credit default swaps 2 Investment grade $ 79,449 $ 70,796 $ 34,529 $ 10,293 $ 195,067 $ (1,060) Non-investment grade 34,571 25,820 10,436 1,024 71,851 307 Total single name credit default swaps $ 114,020 $ 96,616 $ 44,965 $ 11,317 $ 266,918 $ (753) Index and basket credit default swaps 2 Investment grade $ 26,530 $ 21,388 $ 35,060 $ 9,096 $ 92,074 $ (846) Non-investment grade 26,135 22,983 11,759 9,861 70,738 550 Total index and basket credit default swaps $ 52,665 $ 44,371 $ 46,819 $ 18,957 $ 162,812 $ (296) Total credit default swaps sold $ 166,685 $ 140,987 $ 91,784 $ 30,274 $ 429,730 $ (1,049) Other credit contracts 49 6 — 215 270 — Total credit derivatives and other credit contracts $ 166,734 $ 140,993 $ 91,784 $ 30,489 $ 430,000 $ (1,049) 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 control credit risk. The Firm uses quantitative models and judgment to estimate the various risk parameters related to each obligor. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 21,580 $ — $ 417 $ 21,163 U.S. agency securities 1 21,714 36 200 21,550 Total U.S. government and agency securities 43,294 36 617 42,713 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,536 2 42 1,496 Non-agency 1,578 11 9 1,580 Corporate bonds 1,586 13 8 1,591 Collateralized loan obligations 560 1 — 561 FFELP student loan asset- backed securities 2 2,549 7 15 2,541 Total corporate and other debt 7,809 34 74 7,769 Total AFS debt securities 51,103 70 691 50,482 AFS equity securities 15 — 9 6 Total AFS securities 51,118 70 700 50,488 HTM securities U.S. government securities: U.S. Treasury securities 8,463 9 216 8,256 U.S. agency securities 1 12,501 10 193 12,318 Total U.S. government and agency securities 20,964 19 409 20,574 Corporate and other debt: Commercial mortgage-backed securities: Non-agency 124 — 1 123 Total corporate and other debt 124 — 1 123 Total HTM securities 21,088 19 410 20,697 Total Investment securities $ 72,206 $ 89 $ 1,110 $ 71,185 At December 31, 2016 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 28,371 $ 1 $ 545 $ 27,827 U.S. agency securities 1 22,348 14 278 22,084 Total U.S. government and agency securities 50,719 15 823 49,911 Corporate and other debt: Commercial mortgage- backed securities: Agency 1,850 2 44 1,808 Non-agency 2,250 11 16 2,245 Auto loan asset-backed securities 1,509 1 1 1,509 Corporate bonds 3,836 7 22 3,821 Collateralized loan obligations 540 — 1 539 FFELP student loan asset- backed securities 2 3,387 5 61 3,331 Total corporate and other debt 13,372 26 145 13,253 Total AFS debt securities 64,091 41 968 63,164 AFS equity securities 15 — 9 6 Total AFS securities 64,106 41 977 63,170 HTM securities U.S. government securities: U.S. Treasury securities 5,839 1 283 5,557 U.S. agency securities 1 11,083 1 188 10,896 Total HTM securities 16,922 2 471 16,453 Total Investment securities $ 81,028 $ 43 $ 1,448 $ 79,623 1. U.S. agency securities consist mainly of agency-issued debt, agency mortgage pass-through pool securities and collateralized mortgage obligations. 2. 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, 2017 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 21,163 $ 417 $ — $ — $ 21,163 $ 417 U.S. agency securities 11,890 199 99 1 11,989 200 Total U.S. government and agency securities 33,053 616 99 1 33,152 617 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,063 42 — — 1,063 42 Non-agency 370 6 406 3 776 9 Corporate bonds 592 8 — — 592 8 FFELP student loan asset-backed securities 1,580 15 — — 1,580 15 Total corporate and other debt 3,605 71 406 3 4,011 74 Total AFS debt securities 36,658 687 505 4 37,163 691 AFS equity securities — — 6 9 6 9 Total AFS securities 36,658 687 511 13 37,169 700 HTM securities U.S. government and agency securities: U.S. Treasury securities 7,043 216 — — 7,043 216 U.S. agency securities 10,573 193 — — 10,573 193 Total U.S. government and agency securities 17,616 409 — — 17,616 409 Corporate and other debt: Non-agency 91 1 — — 91 1 Total corporate and other debt 91 1 — — 91 1 Total HTM securities 17,707 410 — — 17,707 410 Total Investment securities $ 54,365 $ 1,097 $ 511 $ 13 $ 54,876 $ 1,110 At December 31, 2016 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 25,323 $ 545 $ — $ — $ 25,323 $ 545 U.S. agency securities 16,760 278 125 — 16,885 278 Total U.S. government and agency securities 42,083 823 125 — 42,208 823 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,245 44 — — 1,245 44 Non-agency 763 11 594 5 1,357 16 Auto loan asset-backed securities 659 1 123 — 782 1 Corporate bonds 2,050 21 142 1 2,192 22 Collateralized loan obligations 178 — 239 1 417 1 FFELP student loan asset-backed securities 2,612 61 — — 2,612 61 Total corporate and other debt 7,507 138 1,098 7 8,605 145 Total AFS debt securities 49,590 961 1,223 7 50,813 968 AFS equity securities 6 9 — — 6 9 Total AFS securities 49,596 970 1,223 7 50,819 977 HTM securities U.S. government and agency securities: U.S. Treasury securities 5,057 283 — — 5,057 283 U.S. agency securities 10,612 188 — — 10,612 188 Total HTM securities 15,669 471 — — 15,669 471 Total Investment securities $ 65,265 $ 1,441 $ 1,223 $ 7 $ 66,488 $ 1,448 As discussed in Note 2 to the consolidated financial statements in the 2016 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 temporaril y 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, 2017 and December 31, 2016 for the reasons discussed herein. For 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 information (as discussed in Note 2 to the consolidated finan cial statements in the 2016 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 loss on securities in an unrealized loss position is consid ered minimal because the Firm’s U.S. government and agency securities, as well as asset-backed securities (“ABS”), commercial mortgage-backed securities (“CMBS”) and collateralized loan obligations (“CLOs”), are highly rated and because corporate bonds are all investment grad e. 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, incl uding U.S. agency mortgage-backed securities, non-agency CMBS, auto loan ABS, CLO and FFELP student loan ABS . Investment Securities by Contractual Maturity At June 30, 2017 $ in millions Amortized Cost Fair Value Annualized Average Yield AFS debt securities U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 3,798 $ 3,786 0.9% After 1 year through 5 years 13,090 12,923 1.2% After 5 years through 10 years 4,692 4,454 1.4% Total 21,580 21,163 U.S. agency securities: Due within 1 year 539 539 0.3% After 1 year through 5 years 3,696 3,693 0.7% After 5 years through 10 years 760 762 2.0% After 10 years 16,719 16,556 1.8% Total 21,714 21,550 Total U.S. government and agency securities 43,294 42,713 1.4% Corporate and other debt: Commercial mortgage-backed securities: Agency: Due within 1 year 49 49 1.1% After 1 year through 5 years 241 240 1.5% After 5 years through 10 years 383 385 1.2% After 10 years 863 822 1.6% Total 1,536 1,496 Non-agency: After 5 years through 10 years 36 35 2.5% After 10 years 1,542 1,545 2.1% Total 1,578 1,580 Corporate bonds: Due within 1 year 36 36 1.2% After 1 year through 5 years 1,219 1,225 2.4% After 5 years through 10 years 331 330 2.4% Total 1,586 1,591 Collateralized loan obligations: After 5 years through 10 years 362 362 1.5% After 10 years 198 199 2.4% Total 560 561 FFELP student loan asset-backed securities: After 1 year through 5 years 57 56 0.8% After 5 years through 10 years 536 532 0.8% After 10 years 1,956 1,953 1.1% Total 2,549 2,541 Total corporate and other debt 7,809 7,769 1.6% Total AFS debt securities 51,103 50,482 1.4% AFS equity securities 15 6 ― % Total AFS securities 51,118 50,488 1.4% HTM securities U.S. government securities: U.S. Treasury securities: Due within 1 year 300 300 0.7% After 1 year through 5 years 4,837 4,831 1.5% After 5 years through 10 years 2,599 2,472 1.6% After 10 years 727 653 2.3% Total 8,463 8,256 U.S. agency securities: After 10 years 12,501 12,318 2.4% Total 12,501 12,318 Corporate and other debt: Commercial mortgage-backed securities: Non-agency: After 1 year through 5 years 41 41 3.7% After 5 years through 10 years 83 82 3.8% Total 124 123 Total HTM securities 21,088 20,697 2.1% Total Investment securities $ 72,206 $ 71,185 1.6% Gross Realized Gains and Losses on Sales of AFS Securities Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Gross realized gains $ 23 $ 71 27 85 Gross realized (losses) (9) (1) (11) (3) Total $ 14 $ 70 16 82 Gross realized gains and losses are recognized in Other revenues in the consolidated income statements. |
Collateralized Transactions
Collateralized Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Collateralized Transactions | |
Collateralized Transactions | 6. Collateralized Transactions The Firm enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, 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 2016 Form 10-K. Offsetting of Certain Collateralized Transactions At June 30, 2017 $ in millions Gross Amounts Amounts Offset Net Amounts Presented Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 161,364 $ (63,956) $ 97,408 $ (89,731) $ 7,677 Securities borrowed 140,136 (13,414) 126,722 (121,668) 5,054 Liabilities Securities sold under agreements to repurchase $ 114,653 $ (63,956) $ 50,697 $ (44,980) $ 5,717 Securities loaned 30,276 (13,414) 16,862 (16,632) 230 Not subject to legally enforceable master netting agreements 2 Securities purchased under agreements to resell $ 7,010 Securities borrowed 1,224 Securities sold under agreements to repurchase 5,222 Securities loaned 183 At December 31, 2016 $ in millions Gross Amounts Amounts Offset Net Amounts Presented Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 182,888 $ (80,933) $ 101,955 $ (93,365) $ 8,590 Securities borrowed 129,934 (4,698) 125,236 (118,974) 6,262 Liabilities Securities sold under agreements to repurchase $ 135,561 $ (80,933) $ 54,628 $ (47,933) $ 6,695 Securities loaned 20,542 (4,698) 15,844 (15,670) 174 Not subject to legally enforceable master netting agreements 2 Securities purchased under agreements to resell $ 7,765 Securities borrowed 2,591 Securities sold under agreements to repurchase 6,500 Securities loaned 154 1 . 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. 2 . Represents amounts within Net Amounts related to transactions that 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. For information related to o ffsetting of derivatives, see Note 4. Maturities and Collateral Pledged Gross Secured Financing Balances by Remaining Contractual Maturity At June 30, 2017 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase 1 $ 29,403 $ 26,884 $ 18,896 $ 39,470 $ 114,653 Securities loaned 1 16,447 1,656 1,833 10,340 30,276 Gross amount of secured financing included in the offsetting disclosure $ 45,850 $ 28,540 $ 20,729 $ 49,810 $ 144,929 Trading liabilities ― Obligation to return securities received as collateral 21,481 — — — 21,481 Total $ 67,331 $ 28,540 $ 20,729 $ 49,810 $ 166,410 At December 31, 2016 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase 1 $ 41,549 $ 36,703 $ 24,648 $ 32,661 $ 135,561 Securities loaned 1 9,487 851 2,863 7,341 20,542 Gross amount of secured financing included in the offsetting disclosure $ 51,036 $ 37,554 $ 27,511 $ 40,002 $ 156,103 Trading liabilities ― Obligation to return securities received as collateral 20,262 — — — 20,262 Total $ 71,298 $ 37,554 $ 27,511 $ 40,002 $ 176,365 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 $ in millions At June 30, 2017 At December 31, 2016 Securities sold under agreements to repurchase 1 U.S. government and agency securities $ 28,512 $ 56,372 State and municipal securities 157 1,363 Other sovereign government obligations 51,498 42,790 Asset-backed securities 1,549 1,918 Corporate and other debt 5,083 9,086 Corporate equities 26,599 23,152 Other 1,255 880 Total securities sold under agreements to repurchase $ 114,653 $ 135,561 Securities loaned 1 Other sovereign government obligations 13,599 4,762 Corporate and other debt 124 73 Corporate equities 16,375 15,693 Other 178 14 Total securities loaned $ 30,276 $ 20,542 Gross amount of secured financing included in the offsetting disclosure $ 144,929 $ 156,103 Trading liabilities ― Obligation to return securities received as collateral Corporate equities 21,472 20,247 Other 9 15 Total Trading liabilities ―O bligation to return securities received as collateral $ 21,481 $ 20,262 Total $ 166,410 $ 176,365 1. Amounts are presented on a gross basis, prior to netting in the consolidated balance sheets . Assets Pledged $ in millions At June 30, 2017 At December 31, 2016 Carrying value of trading assets loaned or pledged 1 $ 42,053 $ 41,358 Carrying value of loans pledged (gross of allowance for loan losses) 1 3,876 — Total $ 45,929 $ 41,358 1. Counterparties do not have the right to sell or repledge the collateral. The Firm pledges its trading assets and loans to collateralize securities sold under agreements to repurchase, securities loaned, other secured financings and derivatives. Counterparties may or may not have the right to sell or repledge the collateral. 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. Pledged financial instruments that cannot be sold or repledged by the secured party are shown in the previous table. Collateral Received The Firm receives collateral in the form of securities in connection with securities purchased under agreements to resell, securities borrowed, 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 securities sold under agreements to repurchase , to enter into securities lending and derivative transactions or for delivery to counterpar ties to cover short positions. The Firm also receives securities as collateral in connection with certain securities-for-securities transactions. In instances where the Firm is the lender and 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. Fair Value of Collateral Received with Right to Sell or Repledge $ in millions At June 30, 2017 At December 31, 2016 Collateral received with right to sell or repledge $ 556,203 $ 561,239 Collateral that was sold or repledged 429,029 430,911 Customer Margin Lending and Other $ in millions At June 30, 2017 At December 31, 2016 Net customer receivables representing margin loans $ 27,744 $ 24,359 The Firm engages in margin lending to clients that allows the client to borrow against the value of qualifying securities. Margin loans are 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 obligations, corporate and other debt, and corporate equities. Customer receivables generated from margin len ding activities are collateralized by customer-owned securities held by the Firm. The Firm monitors required margin levels and established credit terms daily and, pursuant to such guidelines, requires customers to deposit additional collateral, or reduce p ositions, when necessary. For a further discussion of the Firm’s margin lending activities, see Note 6 to the consolidated financial statements in the 2016 Form 10-K. The Firm has additional secured liabilities. For a further discussion of other secured financings, see Note 10 . Cash and Securities Deposited with Clearing Organizations or Segregated $ in millions At June 30, 2017 At December 31, 2016 Segregated securities 1 $ 20,351 $ 23,756 Other assets―Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 30,171 33,979 Total $ 50,522 $ 57,735 Securities segregated under federal regulations for the Firm’s U.S. broker-dealers 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, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans 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 2016 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 by Loan Type At June 30, 2017 $ in millions Loans Held for Investment Loans Held for Sale Total Loans Corporate loans $ 26,831 $ 9,394 $ 36,225 Consumer loans 26,354 — 26,354 Residential real estate loans 25,646 60 25,706 Wholesale real estate loans 8,482 1,178 9,660 Total loans, gross 87,313 10,632 97,945 Allowance for loan losses (306) — (306) Total loans, net $ 87,007 $ 10,632 $ 97,639 At December 31, 2016 $ in millions Loans Held for Investment Loans Held for Sale Total Loans Corporate loans $ 25,025 $ 10,710 $ 35,735 Consumer loans 24,866 — 24,866 Residential real estate loans 24,385 61 24,446 Wholesale real estate loans 7,702 1,773 9,475 Total loans, gross 81,978 12,544 94,522 Allowance for loan losses (274) — (274) Total loans, net $ 81,704 $ 12,544 $ 94,248 Loans to Non-U.S. Borrowers $ in millions At June 30, 2017 At December 31, 2016 Loans, net of allowance $ 8,725 $ 9,388 Loans by Interest Rate Type $ in millions At June 30, 2017 At December 31, 2016 Fixed $ 12,696 $ 11,895 Floating or adjustable $ 84,943 $ 82,353 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 2016 Form 10-K. Loans Held for Investment before Allowance by Credit Quality At June 30, 2017 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 25,321 $ 26,351 $ 25,598 $ 7,975 $ 85,245 Special mention 416 3 — 192 611 Substandard 1,025 — 48 315 1,388 Doubtful 69 — — — 69 Loss — — — — — Total $ 26,831 $ 26,354 $ 25,646 $ 8,482 $ 87,313 At December 31, 2016 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 23,409 $ 24,853 $ 24,345 $ 7,294 $ 79,901 Special mention 288 13 — 218 519 Substandard 1,259 — 40 190 1,489 Doubtful 69 — — — 69 Loss — — — — — Total $ 25,025 $ 24,866 $ 24,385 $ 7,702 $ 81,978 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 2016 Form 10-K. Impaired Loans Before Allowance by Product Type At June 30, 2017 $ in millions Corporate Residential Real Estate Total With allowance $ 141 $ — $ 141 Without allowance 1 122 35 157 Unpaid principal balance 2 273 36 309 At December 31, 2016 $ in millions Corporate Residential Real Estate Total With allowance $ 104 $ — $ 104 Without allowance 1 206 35 241 Unpaid principal balance 2 316 38 354 At June 30, 2017 and December 31, 2016 , no allowance was recorded 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 with out allowance due to various factors, including charge-offs and net deferred loan fees or costs. Select Loan Information by Region At June 30, 2017 $ in millions Americas EMEA Asia-Pacific Total Impaired loans $ 279 $ 9 $ 10 $ 298 Allowance for loan losses 274 30 2 306 At December 31, 2016 $ in millions Americas EMEA Asia-Pacific Total Impaired loans $ 320 $ 9 $ 16 $ 345 Allowance for loan losses 245 28 1 274 EMEA—Europe, Middle East and Africa Allowance for Credit Losses on Lending Activities Loans — Current Y ear Period Allowance for Loan Losses Rollforward Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2016 $ 195 $ 4 $ 20 $ 55 $ 274 Recoveries 1 — — — 1 Provision for (release of) loan losses 1 14 — 1 14 29 Other 1 — — 1 2 June 30, 2017 $ 211 $ 4 $ 21 $ 70 $ 306 Loan Loss Allowance by Impairment Methodology At June 30, 2017 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 142 $ 4 $ 21 $ 70 $ 237 Specific 69 — — — 69 Total $ 211 $ 4 $ 21 $ 70 $ 306 Loans by Impairment Methodology 2 At June 30, 2017 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 26,568 $ 26,354 $ 25,611 $ 8,482 $ 87,015 Specific 263 — 35 — 298 Total $ 26,831 $ 26,354 $ 25,646 $ 8,482 $ 87,313 The Firm recorded provisions of $ 7 million for loan losses for the current quarter. Loan balances are gross of the allowance for loan losses. Loans — Prior Year Period Allowance for Loan Losses Rollforward Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Provision for (release of) loan losses 1 116 (1) 1 12 128 Other 2 (30) — — — (30) June 30, 2016 $ 252 $ 4 $ 18 $ 49 $ 323 Loan Loss Allowance by Impairment Methodology At June 30, 2016 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 147 $ 4 $ 18 $ 49 $ 218 Specific 105 — — — 105 Total $ 252 $ 4 $ 18 $ 49 $ 323 Loans by Impairment Methodology 3 At June 30, 2016 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 23,604 $ 23,337 $ 22,638 $ 7,415 $ 76,994 Specific 582 — 30 — 612 June 30, 2016 $ 24,186 $ 23,337 $ 22,668 $ 7,415 $ 77,606 The Firm recorded provisions of $ 16 million for loan losses for the prior year quarter. 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. Commitments — Current Year Period Allowance for Lending Commitments Rollforward Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2016 $ 185 $ 1 $ — $ 4 $ 190 Provision for (release of) lending commitments 1 (3) — — (1) (4) June 30, 2017 $ 182 $ 1 $ — $ 3 $ 186 Lending Commitments Allowance by Impairment Methodology At June 30, 2017 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 179 $ 1 $ — $ 3 $ 183 Specific 3 — — — 3 Total $ 182 $ 1 $ — $ 3 $ 186 Lending Commitments by Impairment Methodology 2 At June 30, 2017 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 62,339 $ 6,005 $ 346 $ 409 $ 69,099 Specific 229 — — — 229 Total $ 62,568 $ 6,005 $ 346 $ 409 $ 69,328 The Firm recorded a release of $ 7 million for commitments for the current quarter. Lending commitments are gross of the allowance for lending commitments. Commitments — Prior Year Period Allowance for Lending Commitments Rollforward Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Provision for lending commitments 1 1 — — 2 3 Other — (1) — — (1) June 30, 2016 $ 181 $ — $ — $ 6 $ 187 Lending Commitments Allowance by Impairment Methodology At June 30, 2016 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 173 $ — $ — $ 6 $ 179 Specific 8 — — — 8 Total $ 181 $ — $ — $ 6 $ 187 Lending Commitments by Impairment Methodology 2 At June 30, 2016 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 63,120 $ 5,264 $ 327 $ 496 $ 69,207 Specific 64 — — — 64 Total $ 63,184 $ 5,264 $ 327 $ 496 $ 69,271 The Firm recorded a release of $ 13 million for commitments for the prior year quarter. Lending commitments are gross of the allowance for lending commitments. Troubled Debt Restructurings I mpaired loans and lending commitments classified as held for investment within corporate loans include troubled debt restructurings as shown in the following table. Troubled Debt Restructurings $ in millions At June 30, 2017 At December 31, 2016 Loans $ 58 $ 67 Lending commitments 21 14 Allowance for loan losses 8 — These restructurings typically include modifications of interest rates, collateral requirements, other loan covenants and payment extensions. Employee Loans Employee loans are granted 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 20 years. The Firm establishes an allowance for loan amounts it does not consider recoverable, and the related provision is recorded in Compensation and benefits expense. Employee Loans $ in millions At June 30, 2017 At December 31, 2016 Balance $ 4,323 $ 4,804 Allowance for loan losses (83) (89) Balance, net $ 4,240 $ 4,715 |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures | |
Equity Method Investments | 8. Equity Method Investments Overview The Firm’s investments accounted for under the equity method of accounting (see Note 1 to the consolidated financial statements in the 2016 Form 10-K) are included in Other assets—Other investments in the consolidated balance sheets. Income (loss) from equity method investments is included in Other revenues in the c onsolidated income statements . Equity Method Investment Balances $ in millions At June 30, 2017 At December 31, 2016 Investments $ 2,760 $ 2,837 Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Income (loss) $ (9) $ (14) $ — $ 1 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. T he Firm record s income from its 40% interest in MUMSS within Other revenues in the co nsolidated income statements . Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Income from investment in MUMSS $ 23 $ 23 $ 71 $ 57 In addition to MUMSS, the Firm held other equity method investments that were not individually significant. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2017 | |
Deposits [Abstract] | |
Deposits | 9. De posi ts Deposits At June 30, At December 31, $ in millions 2017 2016 Savings and demand deposits $ 141,087 $ 154,559 Time deposits 1 3,826 1,304 Total 2 $ 144,913 $ 155,863 Deposits subject to FDIC insurance $ 120,991 $ 127,992 Time deposits that equal or exceed the FDIC insurance limit $ 2 $ 46 Interest Bearing Deposit Maturities at June 30, 2017 Savings and Time $ in millions Demand Deposits Deposits 1 Demand $ 141,047 $ — 2017 — 2,925 2018 — 672 2019 — 105 2021 — 8 Thereafter — 116 FDIC—Federal Deposit Insurance Corporation Certain time deposit accounts are carried at fair value under the fair value option (see Note 3). Deposits were primarily held in the U.S. The vast majority of deposits in Morgan Stanley Bank, N.A. (“MSBNA”) and Morgan Stanley Private Bank, National Association (“MSPBNA”) (collectively, “U.S. Bank Subsidiaries”) are sourced from Wealth Management customer accounts. |
Long-Term Borrowings and Other
Long-Term Borrowings and Other Secured Financings | 6 Months Ended |
Jun. 30, 2017 | |
Borrowings and Other Secured Financings | |
Long-Term Borrowings and Other Secured Financings | 10. Long-Term Borrowings and Other Secured Financings Long-Term Borrowings $ in millions At June 30, 2017 At December 31, 2016 Senior $ 173,761 $ 154,472 Subordinated 10,351 10,303 Total $ 184,112 $ 164,775 Weighted average stated maturity, in years 6.5 5.9 During the current year period and prior year period, the Firm issued notes with a principal amount of approximately $ 33.5 billion and $20.6 billion, respectively, and approximately $ 17.8 billion and $15.9 billion, respectively, in aggregate long-term borrowings matured or were retired. 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 t he 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 information on Other secured financings related to VIEs and securitization activities. Other Secured Financings by Original Maturity and Type $ in millions At June 30, 2017 At December 31, 2016 Secured Financings Original maturities: Greater than one year $ 11,005 $ 9,404 One year or less 4,996 1,429 Failed sales 1 641 285 Total $ 16,642 $ 11,118 For more information o n failed sales, see Note 12. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
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. Years to Maturity at June 30, 2017 Less $ in millions than 1 1-3 3-5 Over 5 Total Lending: Corporate 1 $ 13,478 $ 28,417 $ 45,187 $ 3,806 $ 90,888 Consumer 5,998 4 — 4 6,006 Residential real estate 35 25 84 238 382 Wholesale real estate 232 266 8 67 573 Forward-starting secured financing receivables 2 70,023 — — — 70,023 Underwriting 1,024 — — — 1,024 Investment activities 569 197 22 259 1,047 Letters of credit and other financial guarantees 156 1 1 41 199 Total $ 91,515 $ 28,910 $ 45,302 $ 4,415 $ 170,142 1. Due to the nature of the Firm’s obligations under the commitments, these amounts include certain commitments participated to third parties of $ 6.2 billion . 2. Represents forward-starting securities purchased under agreements to resell and securities borrowed agreements , of which $ 59.8 billion settled within three business days. For a further description of these commitments, refer to Note 12 to the consolidat ed financial statements in the 2016 Form 10-K. Guarantees Obligations under Guarantee Arrangements at June 30, 2017 Maximum Potential Payout/Notional Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Credit derivatives $ 133,654 $ 92,988 $ 96,431 $ 27,743 $ 350,816 Other credit contracts 27 — 13 129 169 Non-credit derivatives 1,560,514 918,800 331,073 572,502 3,382,889 Standby letters of credit and other financial guarantees issued 1 779 856 1,147 5,153 7,935 Market value guarantees 39 65 70 — 174 Liquidity facilities 3,229 — — — 3,229 Whole loan sales guarantees — — 2 23,278 23,280 Securitization representations and warranties — — — 57,547 57,547 General partner guarantees 34 44 313 13 404 Carrying Amount (Asset)/ Liability Collateral/ Recourse $ in millions Credit derivatives 2 $ (1,730) $ — Other credit contracts 4 — Non-credit derivatives 2 45,076 — Standby letters of credit and other financial guarantees issued 1 (186) 6,560 Market value guarantees 1 4 Liquidity facilities (5) 5,503 Whole loan sales guarantees 8 — Securitization representations and warranties 90 — General partner guarantees 44 — 1. These amounts include certain issued standby letters of credit participated to third parties , totaling $ 0.7 billion of notional and collateral/recourse, due to the nature of the Firm’s obligations under these arrangements . 2. 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. The Firm also 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 sales guarantees and general partner guarantees related to certain investment management funds, as well as the other produ cts in the previous table, see Note 12 to the consolidated financial statements in the 2016 Form 10-K. Other Guarantees and Indemnities In the normal course of business, the Firm provides guarantees and indemnifications in a variety of transactions. The se provisions generally are standard contractual terms. Certain of these guarantees and indemnifications related to indemnities, exchange/clearinghouse member guarantees and merger and acquisition guarantees are described in Note 12 to the consolidated fin ancial statements in the 2016 Form 10-K. In addition, in 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 d ebt or trading obligations) are included in the consolidated financial statements. Finance Subsidiary The Parent Company fully and unconditionally guarantees the securities issued by Morgan Stanley Finance LLC, a 100%-owned finance subsidiary. Conting encies 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 the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the entities that would otherwi se be the primary defendants in such cases are bankrupt or are in financial distress. These actions have included, but are not limited to, residential mortgage and credit-crisis related matters. Over the last several years, the level of litigation and inv estigatory activity (both formal and informal) by governmental and self-regulatory agencies has increased materially in the financial services industry. As a result, the Firm expects that it will continue to be the subject of elevated claims for damages an d other relief and, while the Firm has identified below any individual 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 t hat have not yet been asserted or are not yet determined to be probable 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. In many proceedings and investigati ons, however, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount of any loss. In addition, even where a loss is possible or an exposure to loss exists in excess of the liability already accrued w ith 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, pa rticularly for proceedings and investigations where the factual record is being developed or contested 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 lega l questions relevant to the proceedings or investigations in question, before a loss or additional loss or range of loss or additional range of loss can be reasonably estimated for a proceeding or investigation. For certain other legal proceedings and in vestigations, 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 los ses 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 cr edit default swap, rescission of CDIB’s obligation to pay an additional $12 million, punitive damages, equitable relief, fees and costs. On February 28, 2011, the court denied the Firm’s motion to dismiss the complaint. Based on currently available informa tion, the Firm believes it could incur a loss in this action of up to approximately $ 240 million plus pre- and post-judgment interest, fees and costs. On August 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 ., pending in the Supreme Court of NY . The complaint asserts claims for breach of contract and alleges, among other things, that the loan s 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 agreement s underlying the transactions, specific performance and unspecified damages and interest. On August 16, 2013, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. On August 16, 2016, the Firm moved for summary judgment a nd the plaintiffs moved for partial summary judgment. 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 mortgage loans for whi ch 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 May 3, 2013 , plaint iffs in Deutsche Zentral-Genossenschaftsbank AG et al. v. Morgan Stanley et al. filed a complaint against the Firm, certain affiliates, 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 residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Firm to plain tiff 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 an d punitive damages. On June 10, 2014, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. On June 20, 2017 the Appellate Division, First Department, affirmed the lower court’s June 10, 2014 order. On July 28, 2017, the Firm filed a motion for leave to appeal that decision to the New York Court of Appeals. At March 25, 2017, th e current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $237 million, and the certificates had incurred actual losses of approximately $87 million. Based on currently available information, the Firm beli eves it could incur a loss in this action up to the difference between the $237 million unpaid balance of these certificates (plus any losses 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 National 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. , pendi ng 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 $650 million, breached various representations and war ranties. The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, unspecified damages and interest. On August 22, 2013, the Firm filed a motion to dismiss the complaint, which was gran ted 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 whic h 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 , W ilmington Trust Company , in its capacity as trustee for Morgan Stanley Mortgage Loan Trust 2007-12, filed a complaint against the Firm styled Wilmington Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC et al. , pending in the Supreme Court of N Y . 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, interest and costs. 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. The plaintiff filed a notice of app eal of that order on August 17, 2016, and the appeal was fully briefed on May 5, 2017. On July 11, 2017, the Appellate Division, First Department affirmed in part and reversed in part the trial court’s order that granted in part the Firm’s motion to dismi ss. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $ 152 million, the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands that it di d 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 f or 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 United States District Court for the Southern District of New York . 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 $735 million, breached various representations and warranties. The complaint seeks, a mong 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 mot ion to dismiss the complaint. On May 8, 2017, the Firm moved for summary judgment. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $ 292 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 incr ease. On September 19, 2014 , Financial Guaranty Insurance Company (“FGIC”) filed a complaint against the Firm in the Supreme Court of NY , styled Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. relating to a securitization issued by Basket of Aggregated Residential NIMS 2007-1 Ltd. The complaint asserts claims for breach of contract and alleges, among other things, that the net interest margin securities (“NIMS”) in the trust breached various representations and warranties. FGIC issued a financial guaranty policy with respect to certain notes that had an original balance of approximately $475 million. The complaint seeks, among other relief, specific performance of the NIMS breach remedy procedures in the transaction document s, unspecified damages, reimbursement of certain payments made pursuant to the transaction documents, attorneys’ fees and interest. On November 24, 2014, the Firm filed a motion to dismiss the complaint, which the court denied on January 19, 2017. On Febru ary 24, 2017, the Firm filed a notice of appeal of the court’s order. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $ 126 million, the unpaid balance of these notes, plus pre- an d post-judgment interest, fees and costs, as well as claim payments that FGIC has made and will make in the future. On September 23, 2014 , FGIC filed a complaint against the Firm in the Supreme Court of NY styled Financial Guaranty Insurance Company v. Mo rgan Stanley ABS Capital I Inc. et al . relating to the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4. The complaint asserts claims for breach of contract and fraudulent inducement and alleges, among other things, that the loans in the trust breached var ious representations and warranties and defendants made untrue statements and material omissions to induce FGIC to issue a financial guaranty policy on certain classes of certificates that had an original balance of approximately $876 million. The complain t seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, compensatory, consequential and punitive damages, attorneys’ fees and interest. On January 23, 2017, the court denied the Firm’s motion to dismiss the complaint. On February 24, 2017, the Firm filed a notice of appeal of the court’s order. 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 origin al unpaid balance of the mortgage loans for which the Firm received repurchase demands from a certificate holder and FGIC that the Firm did not repurchase, plus pre- and post-judgment interest, fees and costs, as well as claim payments that FGIC has made a nd will make in the future. In addition, plaintiff is seeking to expand the number of loans at issue 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 a gainst 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 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 $1.0 5 billion, breached various representations and warranties. The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, compensatory, consequential, rescissory, equitable and punitive dam ages, attorneys’ fees, costs and other related expenses, and interest. On December 11, 2015, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. On February 11, 2016, plaintiff filed a notice of appeal of that order, an d the appeal was fully briefed on August 19, 2016. 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 balance 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. In matters styled Case number 15/3637 and Case number 15/4353 , the Dutch Tax Authority (“Dutch Authority”) is challenging in the Dutch Tax Tribunal in Amsterdam the prior set-off by the Firm of approximately €124 million (plus accrued interest) of withholding tax credits against the Firm’s corporation tax liabilities for the tax years 2007 to 2013. The Dutch Authority alleges that the Firm was not entitled to receive the withholding tax credits on the basis, inter alia, t hat a Firm subsidiary did not hold legal title to certain securities subject to withholding tax on the relevant dates. The Dutch Authority has also alleged that the Firm failed to provide certain information to the Dutch Authority and keep adequate books and records. The Firm does not agree with these allegations. A hearing regarding this matter has been scheduled on September 19, 2017. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approxim ately € 124 million (plus accrued interest). |
Variable Interest Entities and
Variable Interest Entities and Securitization Activities | 6 Months Ended |
Jun. 30, 2017 | |
Securitization Activities and Variable Interest Entities [Abstract] | |
Variable Interest Entity Disclosures | 12. Variable Interest Entities and Securitization Activities Overview For a discussion o f the Firm’s VIEs, the determination and structure of VIEs and securitization activities, see Note 13 to the consolidated financial statements in the 2016 Form 10-K. Consolidated VIEs Assets and Liabilities by Type of Activity At June 30, 2017 At December 31, 2016 $ in millions VIE Assets VIE Liabilities VIE Assets VIE Liabilities Credit-linked notes $ 200 $ — $ 501 $ — Other structured financings 426 5 602 10 Asset-backed securitizations 1 34 22 397 283 Other 2 1,164 258 910 25 Total $ 1,824 $ 285 $ 2,410 $ 318 Asset-backed securitizations include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets. The value of assets is determined based on the fair value of the liabilities 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, $ in millions 2017 2016 Assets Cash and due from banks $ 87 $ 74 Trading assets at fair value 785 1,295 Customer and other receivables 12 13 Goodwill 18 18 Intangible assets 166 177 Other assets 756 833 Total $ 1,824 $ 2,410 Liabilities Other secured financings at fair value $ 249 $ 289 Other liabilities and accrued expenses 36 29 Total $ 285 $ 318 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 provides additional recourse through derivatives such as total return swaps, guarante es or other forms of involvement. 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, net of amounts absorbed by third-party variable interest holders. Noncontrolling Interests and Additional Maximum Exposure to Losses Related to Consolidated VIEs At June 30, At December 31, $ in millions 2017 2016 Noncontrolling interests $ 206 $ 228 Maximum exposure to losses 1 — 78 Primarily related to certain derivatives, commitments, guarantees and other forms of involvement not recognized in the consolidated financial statements . Non-c onsolidated 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 and exclude exposure to loss from liabilities due to immateriality . Most of the VIEs included in the following tables a re sponsored by unrelated parties; the Firm ’s involvement generally is the result of its secondary market-making activities, securities held in its Investment securities portfolio (see Note 5) and certain investments in funds. Non-consolidated VIE Assets, Maximum and Carrying Value of Exposure to Loss At June 30, 2017 $ in millions MABS CDO MTOB OSF Other VIE assets (unpaid principal balance) $ 78,818 $ 8,598 $ 5,337 $ 3,526 $ 34,823 Maximum exposure to loss Debt and equity interests $ 8,482 $ 1,703 $ 52 $ 1,503 $ 5,528 Derivative and other contracts — — 3,229 — 25 Commitments, guarantees and other 805 1,468 — 174 337 Total $ 9,287 $ 3,171 $ 3,281 $ 1,677 $ 5,890 Carrying value of exposure to loss—Assets Debt and equity interests $ 8,482 $ 1,703 $ 52 $ 1,098 $ 5,528 Derivative and other contracts — — 5 — 52 Total $ 8,482 $ 1,703 $ 57 $ 1,098 $ 5,580 At December 31, 2016 $ in millions MABS CDO MTOB OSF Other VIE assets (unpaid principal balance) $ 101,916 $ 11,341 $ 4,857 $ 4,293 $ 39,077 Maximum exposure to loss Debt and equity interests $ 11,243 $ 1,245 $ 50 $ 1,570 $ 4,877 Derivative and other contracts — — 2,812 — 45 Commitments, guarantees and other 684 99 — 187 228 Total $ 11,927 $ 1,344 $ 2,862 $ 1,757 $ 5,150 Carrying value of exposure to loss—Assets Debt and equity interests $ 11,243 $ 1,245 $ 49 $ 1,183 $ 4,877 Derivative and other contracts — — 5 — 18 Total $ 11,243 $ 1,245 $ 54 $ 1,183 $ 4,895 MABS— Mortgage - and asset - back ed securitizations CDO— Collateralized debt obligations , including collateralized loan obligations MTOB— Municipal tender option bonds OSF— Other structured financing s Non-consolidated VIE Mortgage- and Asset-Backed Securitization Assets At June 30, 2017 At December 31, 2016 Unpaid Principal Balance Debt and Equity Interests Unpaid Principal Balance Debt and Equity Interests $ in millions Residential mortgages $ 9,106 $ 524 $ 4,775 $ 458 Commercial mortgages 49,504 2,614 54,021 2,656 U.S. agency collateralized mortgage obligations 13,243 2,745 14,796 2,758 Other consumer or commercial loans 6,965 2,599 28,324 5,371 Total $ 78,818 $ 8,482 $ 101,916 $ 11,243 The Firm’s maximum exposure to loss presented above often differs from the carrying value of the variable interests held by the Firm. The maximum exposure to loss presented above 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 gen erally are non-recourse to the Firm. Where notional amounts are utilized in quantifying the 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 presente d above does not include the offsetting benefit 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 presented above is not reduced by the amoun t 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 $ 11.9 billion and $ 11.7 billion at June 30, 2017 and Decemb er 31, 2016 , respectively. These assets were either retained in connection with transfers of assets by the Firm, acquired in connection with secondary market-making activities, held as AFS securities in its Investment securities portfolio (see Note 5 ), or held as investments in funds. At June 30, 2017 and December 31, 2016 , these assets consisted of securities backed by residential mortgage loans, commercial mortgage loans or other consumer loans, such as credit card receivables, automobil e loans and student loans, CDOs or CLOs, and investment funds. The Firm’s primary risk exposure is to the securities issued by the SPE owned by the Firm, with the highest risk on the most subordinate class of beneficial interests. These assets generally are included in Trading assets—Corporate and other debt, Trading 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 transacti ons through contractual facilities, such as liquidity facilities, guarantees or similar derivatives. The Firm’s maximum exposure to loss generally equals the fair value of the assets owned. Transactions with SPEs in which the Firm, acting as principal, transferred financial assets with continuing involvement and received sales treatment are shown in the following tables. Transfers of Assets with Continuing Involvement At June 30, 2017 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other 1 $ in millions SPE assets (unpaid principal balance) 2 $ 17,692 $ 53,764 $ 12,337 $ 11,831 Retained interests Investment grade 3 $ — $ 140 $ 710 $ 5 Non-investment grade (fair value) 3 86 — 643 Total $ 3 $ 226 $ 710 $ 648 Interests purchased in the secondary market (fair value) Investment grade $ 4 $ 92 $ 66 $ — Non-investment grade 17 71 — — Total $ 21 $ 163 $ 66 $ — Derivative assets (fair value) $ 1 $ — $ — $ 32 Derivative liabilities (fair value) — — — 307 At December 31, 2016 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other 1 $ in millions SPE assets (unpaid principal balance) 2 $ 19,381 $ 43,104 $ 11,092 $ 11,613 Retained interests (fair value) Investment grade $ — $ 22 $ 375 $ — Non-investment grade 4 79 — 826 Total $ 4 $ 101 $ 375 $ 826 Interests purchased in the secondary market (fair value) Investment grade $ — $ 30 $ 26 $ — Non-investment grade 23 75 — — Total $ 23 $ 105 $ 26 $ — Derivative assets (fair value) $ — $ 261 $ — $ 89 Derivative liabilities (fair value) — — — 459 Amounts include CLO transactions managed by unrelated third parties. Amounts include assets transferred by unrelated transferors . Amounts include $ 734 million of investment grade retained interests at fair value. At June 30, 2017 $ in millions Level 2 Level 3 Total Retained interests (fair value) Investment grade $ 729 $ 5 $ 734 Non-investment grade 4 728 732 Total $ 733 $ 733 $ 1,466 Interests purchased in the secondary market (fair value) Investment grade $ 155 $ 7 $ 162 Non-investment grade 75 13 88 Total $ 230 $ 20 $ 250 Derivative assets (fair value) $ 33 $ — $ 33 Derivative liabilities (fair value) 131 176 307 At December 31, 2016 $ in millions Level 2 Level 3 Total Retained interests (fair value) Investment grade $ 385 $ 12 $ 397 Non-investment grade 14 895 909 Total $ 399 $ 907 $ 1,306 Interests purchased in the secondary market (fair value) Investment grade $ 56 $ — $ 56 Non-investment grade 84 14 98 Total $ 140 $ 14 $ 154 Derivative assets (fair value) $ 348 $ 2 $ 350 Derivative liabilities (fair value) 98 361 459 Transferred assets are carried at fair value prior to securitization, and any changes in fair value are recognized in the consolidated income statements. 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 generally carried at fair value in the consolidated balance sheets with changes in fair value recognized in the consolidated income statements. Proceeds from New Securitization Transactions and Sales of Loans Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 New transactions 1 $ 4,750 $ 4,163 $ 10,747 $ 6,876 Retained interests 529 502 959 1,133 Sales of corporate loans to CLO SPEs 1,2 239 — 418 31 Net gains on new transactions and sale s of corporate loans to CLO entities at the time of the sale were not material for all periods presented. Sponsored by non-affiliates . 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). 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 fol lowing table. Carrying and Fair Value of Assets Sold and Retained Interest Exposure $ in millions At June 30, 2017 At December 31, 2016 Carrying value of assets derecognized at the time of sale and gross cash proceeds $ 14,817 $ 11,209 Fair value Assets sold 14,710 11,301 Derivative assets recognized in the consolidated balance sheets 33 128 Derivative liabilities recognized in the consolidated balance sheets 140 36 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 certain 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 provides 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, 2017 At December 31, 2016 $ in millions Assets Liabilities Assets Liabilities Failed sales $ 641 $ 641 $ 285 $ 285 |
Regulatory Requirements
Regulatory Requirements | 6 Months Ended |
Jun. 30, 2017 | |
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 2016 Form 10-K. Regulatory Capital Requirements The Firm is required to maintain minimum risk-based and leverage capital ratios under the regulatory capital requirements. A summary of the calculations of regulatory capital, risk-weighted assets (“RWAs”) and transition provisions follows. Regulatory Capital The Firm’s binding risk-based capi tal ratios for regulatory purposes are the lower of the capital ratios computed under the (i) standardized approaches for calculating credit risk RWAs and market risk RWAs (the “Standardized Approach”) and (ii) applicable advanced approaches for calculatin g credit risk, market risk and operational risk RWAs (the “Advanced Approach”). Minimum risk-based capital ratio requirements apply to Common Equity Tier 1 capital, Tier 1 capital and Total capital. Certain adjustments to and deductions from capital are required for purposes of determining these ratios, such as goodwill, intangible assets, certain deferred tax assets, other amounts in AOCI and investments in the capital instruments of unconsolidated financial institutions. Certain of these adjustments and deductions are also subject to transitional provisions. In addition to the minimum risk-based capital ratio requirements, o n 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 capital surcharge, currently at 3%; and Up to a 2.5% Common Equity Tier 1 countercyclical capital buffer, currently set by U.S. banking regulators at zero (collectively, the “buffers”). In 2017 , the phase-in amount for each of the buffers is 50% of 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 repu rchase of stock, and to pay discretionary bonuses to executive 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 i n 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 calculati on of risk-based capital ratios, see Note 14 to the consolidated financial statements in the 2016 Form 10-K. The Firm’s Regulatory Capital and Capital Ratios At June 30, 2017 and December 31, 2016 , the Firm’s binding ratios are based on the Advanced Approach transitional rules. Regulatory Capital At June 30, 2017 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 61,604 16.6% 7.3% Tier 1 capital 70,380 19.0% 8.8% Total capital 81,025 21.9% 10.8% Tier 1 leverage 2 — 8.5% 4.0% Total RWAs $ 370,679 N/A N/A Adjusted average assets 3 828,365 N/A N/A At December 31, 2016 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 60,398 16.9% 5.9% Tier 1 capital 68,097 19.0% 7.4% Total capital 78,642 22.0% 9.4% Tier 1 leverage 2 — 8.4% 4.0% Total RWAs $ 358,141 N/A N/A Adjusted average assets 3 811,402 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 the 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 ended June 30, 2017 and December 31, 2016 , respectively , adjusted for disallowed goodwill, tr ansitional 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 The Firm’s 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 U.S. Bank Subsidiaries ’ financial statements. Under capital adequacy guidelines and the regulatory framewor k for prompt corrective action, each of the 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. 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 . Under regulatory capital requirements adopted by the U.S. federal banking agencies, U.S. depository institutions must maintain certain minimum capital ratios in order to be considered well-capitalized. At June 30, 2017 and December 31, 2016 , 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 regulators. At June 30, 2017 and December 31, 2016 , the U.S. Bank Subsidiaries’ binding ratios are based on the Standardized Approach transitional rules. MSBNA’s Regulatory Capital At June 30, 2017 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 14,526 18.5% 6.5% Tier 1 capital 14,526 18.5% 8.0% Total capital 14,807 18.9% 10.0% Tier 1 leverage 14,526 12.0% 5.0% At December 31, 2016 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 13,398 16.9% 6.5% Tier 1 capital 13,398 16.9% 8.0% Total capital 14,858 18.7% 10.0% Tier 1 leverage 13,398 10.5% 5.0% 1. Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. MSPBNA’s Regulatory Capital At June 30, 2017 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 5,898 24.8% 6.5% Tier 1 capital 5,898 24.8% 8.0% Total capital 5,938 25.0% 10.0% Tier 1 leverage 5,898 10.3% 5.0% At December 31, 2016 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 5,589 26.1% 6.5% Tier 1 capital 5,589 26.1% 8.0% Total capital 5,626 26.3% 10.0% Tier 1 leverage 5,589 10.6% 5.0% 1. Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. U.S. Broker-Dealer Regulatory Capital Requirements MS&Co. Regulatory Capital $ in millions At June 30, 2017 At December 31, 2016 Net capital $ 10,388 $ 10,311 Excess net capital 8,312 8,034 Morgan Stanley & Co. LLC (“MS&Co.”) is a registered U.S. broker-dealer and registered futures commission merchant and, accordingly, is subject to the minimum net capital requirements of the U.S. Securities and Exchange Commission (“SEC”) and the U.S. Commod ity Futures Trading Commission (“CFTC”). As an Alternative Net Capital broker-dealer under SEC rules , MS&Co . is subject to minimum net capital requirements, which it exceeded as presented in the previous table. In addition to these requirements, MS&Co . is required to meet capital requirements imposed by Appendix E of Rule 15c3-1, which are presented in the following table . MS&Co. has consistently operated with capital in excess of its regulatory capital requirements. $ in millions At June 30, 2017 At December 31, 2016 Required tentative net capital 1 $ 1,000 $ 1,000 Required net capital 500 500 MS&Co. is required to notify the SEC in the event that its tentative net capital is less than $ 5 billion . At June 30, 2017 and December 31, 2016 , MS&Co. had tentative net capital in excess of the minimum and the notification requirements. MSSB LLC Regulatory Capital $ in millions At June 30, 2017 At December 31, 2016 Net capital $ 2,288 $ 3,946 Excess net capital 2,131 3,797 Morgan Stanley Smith Barney LLC (“MSSB LLC”) is a registered U.S. broker- dealer and introducing broker for the futures business and, accordingly, is subject to the minimum net capital requirements of the SEC. MSSB LLC has consistently operated with capital in excess of its regulatory capital requirements. Other Regulated Subsidiaries Morgan Stanley & Co. International plc (“MSIP”), a London-based broker-dealer subsidiary, is subject to the capital requirements 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 with capital in excess of their respective regulatory capital requirements. Certain other U.S. and non-U.S. subsidiaries of the Firm are subject to various securities, commodities and banking regulations, and capital adequacy requirements promulgated by the regulatory and exchange authorities of the countries in which they operate. These subsidiari es have consistently operate d with capital in excess of their local capital adequacy requirements. |
Total Equity
Total Equity | 6 Months Ended |
Jun. 30, 2017 | |
Total Equity | |
Total Equity | 14. Total Equi ty Dividends and Share Repurchases The Firm repurchased approximately $ 500 million of its outstanding common stock as part of the 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 $ 1,250 million in the prior year period. On June 28, 2017, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) announced that they did not object to the Firm’s 2017 cap ital plan (“Capital Plan”). The Capital Plan includes the share repurchase of up to $ 5.0 billion of outstanding common stock for the period beginning July 1, 2017 through June 30, 2018 , an increase from $ 3.5 billion in the 2016 Capital Plan. Additionally, the Capital Plan includes an increase in the quarterly common stock dividend to $ 0.25 per share from $ 0.20 per share, beginning with the common stock dividend declared on July 19, 2017 . Preferred Stock For a description of Series A through Series K prefe rred stock issuances, see Note 15 to the consolidated financial statements in the 2016 Form 10-K. Dividends declared on the Firm’s outstanding preferred stock were $ 170 million during the current quarter and $ 156 million during th e prior year quarter , and $ 260 million during the current year period and $ 234 million during the prior year period . On June 15 , 2017 , the Firm announced that the Board of Directors (the “Board”) declared a quarterly dividend for preferred stock shareholders of record on June 3 0 , 2017 that was paid on July 1 7 , 2017 . 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 stock qualifies as Tier 1 capital in accordance with regulatory capital requirements (see Note 13). Series K Preferred Stock. The Series K Preferred Stock offering (net of related issuance costs) in January 2017 resulted in proceeds of approximately $ 9 94 million. Preferred Stock Outstanding $ in millions, except per share data Shares Outstanding Carrying Value At Liquidation At At June 30, Preference June 30, December 31, 2017 per Share 2017 2016 Series 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 K 40,000 25,000 1,000 — Total $ 8,520 $ 7,520 1. Series C is composed 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 $ 503 million, which were converted to common shares of approximately $ 705 million. Comprehe nsive Income (Loss ) Accumulated Other Comprehensive Income (Loss) $ in millions Foreign Currency Translation Adjustments AFS Securities Pensions, Postretirement and Other DVA Total March 31, 2017 $ (879) $ (504) $ (474) $ (593) $ (2,450) OCI during the period 1 23 108 4 (173) (38) June 30, 2017 $ (856) $ (396) $ (470) $ (766) $ (2,488) March 31, 2016 $ (831) $ 76 $ (373) $ (110) $ (1,238) OCI during the period 1 52 143 (5) 143 333 June 30, 2016 $ (779) $ 219 $ (378) $ 33 $ (905) December 31, 2016 $ (986) $ (588) $ (474) $ (595) $ (2,643) OCI during the period 1 130 192 4 (171) 155 June 30, 2017 $ (856) $ (396) $ (470) $ (766) $ (2,488) December 31, 2015 $ (963) $ (319) $ (374) $ — $ (1,656) Cumulative adjustment for accounting change related to DVA 2 — — — (312) (312) OCI during the period 1 184 538 (4) 345 1,063 June 30, 2016 $ (779) $ 219 $ (378) $ 33 $ (905) Amounts net of tax and noncontrolling interests. 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 unrealized DVA amount, net of noncontrolling interest s and tax, related to outstanding liabilities under the fair value option election from Retained earnings into AOCI. See Note 2 to the consolidated financial statements in the 2016 Form 10-K for further informa tion. Period Changes in OCI Components Three Months Ended June 30, 2017 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 1 $ 11 $ 12 $ (11) $ 23 Reclassified to earnings — — — — — Net OCI $ 1 $ 11 $ 12 $ (11) $ 23 Change in net unrealized gains (losses) on AFS securities OCI activity $ 185 $ (68) $ 117 $ — $ 117 Reclassified to earnings 1 (14) 5 (9) — (9) Net OCI $ 171 $ (63) $ 108 $ — $ 108 Pension, postretirement and other OCI activity $ 3 $ — $ 3 $ — $ 3 Reclassified to earnings 1 1 — 1 — 1 Net OCI 4 — 4 — 4 Change in net DVA OCI activity $ (285) $ 99 $ (186) $ (10) $ (176) Reclassified to earnings 1 4 (1) 3 — 3 Net OCI $ (281) $ 98 $ (183) $ (10) $ (173) Three Months Ended June 30, 2016 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 72 $ 59 $ 131 $ 79 $ 52 Reclassified to earnings — — — — — Net OCI $ 72 $ 59 $ 131 $ 79 $ 52 Change in net unrealized gains (losses) on AFS securities OCI activity $ 298 $ (110) $ 188 $ — $ 188 Reclassified to earnings 1 (70) 25 (45) — (45) Net OCI $ 228 $ (85) $ 143 $ — $ 143 Pension, postretirement and other OCI activity $ (5) $ — $ (5) $ — $ (5) Reclassified to earnings 1 (1) 1 — — — Net OCI $ (6) $ 1 $ (5) $ — $ (5) Change in net DVA OCI activity $ 225 $ (80) $ 145 $ 2 $ 143 Reclassified to earnings 1 — — — — — Net OCI $ 225 $ (80) $ 145 $ 2 $ 143 Six Months Ended June 30, 2017 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 44 $ 118 $ 162 $ 32 $ 130 Reclassified to earnings — — — — — Net OCI $ 44 $ 118 $ 162 $ 32 $ 130 Change in net unrealized gains (losses) on AFS securities OCI activity $ 322 $ (120) $ 202 $ — $ 202 Reclassified to earnings 1 (16) 6 (10) — (10) Net OCI $ 306 $ (114) $ 192 $ — $ 192 Pension, postretirement and other OCI activity $ 3 $ — $ 3 $ — $ 3 Reclassified to earnings 1 1 — 1 — 1 Net OCI 4 — 4 — 4 Change in net DVA OCI activity $ (278) $ 98 $ (180) $ (3) $ (177) Reclassified to earnings 1 8 (2) 6 — 6 Net OCI $ (270) $ 96 $ (174) $ (3) $ (171) Six Months Ended June 30, 2016 2 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 143 $ 174 $ 317 $ 133 $ 184 Reclassified to earnings — — — — — Net OCI $ 143 $ 174 $ 317 $ 133 $ 184 Change in net unrealized gains (losses) on AFS securities OCI activity $ 934 $ (344) $ 590 $ — $ 590 Reclassified to earnings 1 (82) 30 (52) — (52) Net OCI $ 852 $ (314) $ 538 $ — $ 538 Pension, postretirement and other OCI activity $ (6) $ 3 $ (3) $ — $ (3) Reclassified to earnings 1 (2) 1 (1) — (1) Net OCI $ (8) $ 4 $ (4) $ — $ (4) Change in net DVA OCI activity $ 589 $ (215) $ 374 $ 3 $ 371 Reclassified to earnings 1 (41) 15 (26) — (26) Net OCI $ 548 $ (200) $ 348 $ 3 $ 345 Amounts reclassified to earnings related to: realized gains and losses from sales of AFS securities are classified within Other revenues in the consolidated income statements; Pension, postretirement and other are classified within Compensation and benefits expenses in the consolidated income statements; and realization of DVA are classified within Trading revenues in the consolidated income statements . Exclusive of 2016 cumulative adjustment for accounting change related to DVA. Noncontrolling Interests $ in millions At June 30, 2017 At December 31 2016 Noncontrolling interests $ 1,141 $ 1,127 The increase in noncontrolling interests was primarily due to the increase in net income attributable to noncontrolling interests, partially offset by deconsolidation of certain investment management funds sponsored by the Firm. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 15. Earnings per Common Shar e Calculation of Basic and Diluted Earnings per Common Sh are (“ EPS ”) Three Months Ended Six Months Ended June 30, June 30, in millions, except for per share data 2017 2016 2017 2016 Basic EPS Income from continuing operations $ 1,796 $ 1,650 $ 3,789 $ 2,810 Income (loss) from discontinued operations (5) (4) (27) (7) Net income 1,791 1,646 3,762 2,803 Net income applicable to noncontrolling interests 34 64 75 87 Net income applicable to Morgan Stanley 1,757 1,582 3,687 2,716 Less: Preferred stock dividends and other (170) (157) (260) (235) Earnings applicable to Morgan Stanley common shareholders $ 1,587 $ 1,425 $ 3,427 $ 2,481 Weighted average common shares outstanding 1,791 1,866 1,796 1,875 Earnings per basic common share Income from continuing operations $ 0.89 $ 0.77 $ 1.92 $ 1.33 Income (loss) from discontinued operations — (0.01) (0.01) (0.01) Earnings per basic common share $ 0.89 $ 0.76 $ 1.91 $ 1.32 Diluted EPS Earnings applicable to Morgan Stanley common shareholders $ 1,587 $ 1,425 $ 3,427 $ 2,481 Weighted average common shares outstanding 1,791 1,866 1,796 1,875 Effect of dilutive securities: Stock options and RSUs 1 39 33 40 32 Weighted average common shares outstanding and common stock equivalents 1,830 1,899 1,836 1,907 Earnings per diluted common share Income from continuing operations $ 0.87 $ 0.75 $ 1.88 $ 1.30 Income (loss) from discontinued operations — — (0.01) — Earnings per diluted common share $ 0.87 $ 0.75 $ 1.87 $ 1.30 Weighted average antidilutive RSUs and stock options (excluded from the computation of diluted EPS) 1 — 14 — 15 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. |
Interest Income and Interest Ex
Interest Income and Interest Expense | 6 Months Ended |
Jun. 30, 2017 | |
Interest Income and Interest Expense | |
Interest Income and Interest Expense | 16. Inter est Income and Interest Expense Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Interest income 1 Investment securities $ 304 $ 237 $ 630 $ 473 Loans 798 680 1,546 1,327 Interest bearing deposits with banks 67 52 122 105 Securities purchased under agreements to resell and Securities borrowed 2 29 (120) 10 (198) Trading assets, net of Trading liabilities 3 491 $ 526 955 1,109 Customer receivables and Other 4 417 292 808 598 Total interest income $ 2,106 $ 1,667 $ 4,071 $ 3,414 Interest expense 1 Deposits $ 14 $ 15 $ 25 $ 37 Short-term and Long-term borrowings 1,067 851 2,088 1,818 Securities sold under agreements to repurchase and Securities loaned 5 339 259 587 513 Customer payables and Other 6 (65) (371) (151) (766) Total interest expense $ 1,355 $ 754 $ 2,549 $ 1,602 Net interest $ 751 $ 913 $ 1,522 $ 1,812 1. Interest income and Interest expense are recorded within the consolidated income statements 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. Includes fees paid on Securities borrowed . 3. Interest expense on Trading liabilities is reported as a reduction to Interest income on Trading assets. 4. Inclu des interest from customer receivables and cash deposited with clearing organizations or segregated under federal and other regulations or requirements . 5. Include s fees received on Securities loaned. 6. Includes fees received from prime brokerage customers for stock loan transactions incurred to cover customers’ short positions. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2017 | |
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 the Net Periodic Benefit Expense (Income) for Pension and Other Postretirement Plans Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Service cost, benefits earned during the period $ 4 $ 4 $ 8 $ 8 Interest cost on projected benefit obligation 38 39 75 77 Expected return on plan assets (29) (30) (58) (60) Net amortization of prior service credit (4) (5) (8) (9) Net amortization of actuarial loss 4 3 8 6 Net periodic benefit expense (income) $ 13 $ 11 $ 25 $ 22 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
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 New York City, for tax years 2009-2012 and 2007-2014, respectively. The Firm believes that the resolution of these tax matte rs will not have a material effect on the annual consolidated financial statements, although a resolution could have a material impact on the consolidated income statement s and effective tax rate for any period in which such resolution occurs. In April 20 16, 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 closure of the 2006-2008 tax years. In March 2017, the Firm filed claims with the IRS to contest certain items, associated with tax years 1999-2005, the resolution of which is not expected to have a material impact on the annual consolidated financial statements or effec tive tax rate. During 2017, 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 annual consolidated financial stat ements or effective tax rate. T he 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 ben efits only when new information is available or when an event occurs necessitating a change. The Firm expects to receive new information related to a multi - year IRS field audit examination that may prompt a decrease in the Firm’s recorded unrecognized tax benefits over the next 12 months. The potential change in unrecognized tax benefits is not expected to have a material impact on the Firm’s annual consolida ted financial statements or effective tax rate, although it could have a material impact on the Firm’s consolidated income statements and effective tax rate for the period in which such development occurs. See Note 11 regarding the Dutch Tax Authority’s challenge, in the Dutch Tax Tribunal in Amsterdam (matters styled Case number 15/3637 and Case number 15/4353 ), of th e Firm’s entitlement to certain withholding tax credits which may impact the balance of unrecognized tax benefits. |
Segment and Geographic Informat
Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2017 | |
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 2016 Form 10-K . Selected Financial Information by Business Segment Three Months Ended June 30, 2017 $ in millions IS 1 WM IM 2 I/E Total Total non-interest revenues 3 $ 5,020 $ 3,142 $ 665 $ (75) $ 8,752 Interest income 1,243 1,114 1 (252) 2,106 Interest expense 1,501 105 1 (252) 1,355 Net interest (258) 1,009 — — 751 Net revenues $ 4,762 $ 4,151 $ 665 $ (75) $ 9,503 Income from continuing operations before income taxes $ 1,443 $ 1,057 $ 142 $ — $ 2,642 Provision for income taxes 413 392 41 — 846 Income from continuing operations 1,030 665 101 — 1,796 Income (loss) from discontinued operations, net of income taxes (5) — — — (5) Net income 1,025 665 101 — 1,791 Net income applicable to noncontrolling interests 33 — 1 — 34 Net income applicable to Morgan Stanley $ 992 $ 665 $ 100 $ — $ 1,757 Three Months Ended June 30, 2016 $ in millions IS 4 WM 4 IM 2 I/E Total Total non-interest revenues 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 Six Months Ended June 30, 2017 $ in millions IS 1 WM IM 2 I/E Total Total non-interest revenues 3 $ 10,399 $ 6,206 $ 1,273 $ (152) $ 17,726 Interest income 2,367 2,193 2 (491) 4,071 Interest expense 2,852 190 1 (494) 2,549 Net interest (485) 2,003 1 3 1,522 Net revenues $ 9,914 $ 8,209 $ 1,274 $ (149) $ 19,248 Income from continuing operations before income taxes $ 3,173 $ 2,030 $ 245 $ 2 $ 5,450 Provision for income taxes 872 718 71 — 1,661 Income from continuing operations 2,301 1,312 174 2 3,789 Income (loss) from discontinued operations, net of income taxes (27) — — — (27) Net income 2,274 1,312 174 2 3,762 Net income applicable to noncontrolling interests 68 — 7 — 75 Net income applicable to Morgan Stanley $ 2,206 $ 1,312 $ 167 $ 2 $ 3,687 Six Months Ended June 30, 2016 $ in millions IS 4 WM 4 IM 2 I/E Total Total non-interest revenues 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 (loss) applicable to noncontrolling interests 100 — (13) — 87 Net income applicable to Morgan Stanley $ 1,579 $ 1,009 $ 128 $ — $ 2,716 IS—Institutional Securities WM—Wealth Management IM—Investment Management I/E—Intersegment eliminations In the current quarter, the Firm recorded a provision of $ 86 million for potential additional value - added tax , interest and penalties in relation to certain intercompany service activities provided to our U.K. Group . The Firm waives 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 res ulted in a reduction of fees of approximately $ 23 million and $ 12 million for the current quarter and prior year quarter , respectively, and $ 45 million and $ 35 million for the current year period and prior year period, respectively. In certain management f ee 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 returns or other performance targets. In such ar rangements, 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 Firm’s portion of net unrealized cumulative per formance-based fee s (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 $ 469 million and $ 397 million at June 30, 2017 and December 31, 201 6 , respectively. See Note 11 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received. Effective July 1, 2016, the Institutional Securities and Wealth Management business segments entered into an agreement, whereby Institutional Securities assumed management of Wealth Management’s fixed income client-driven trading activities and employees. Institutional Securities now pays fees to Wealth Managem ent based on distribution activity (collectively, the “Fixed Income Integration”). Prior periods have not been recast for this new intersegment agreement due to immateriality. Total Assets by Business Segment At June 30, At December 31, $ in millions 2017 2016 Institutional Securities $ 665,603 $ 629,149 Wealth Management 170,735 181,135 Investment Management 4,678 4,665 Total 1 $ 841,016 $ 814,949 C orporate 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 2016 Form 10-K. Net Revenues by Region Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Americas $ 6,746 $ 6,538 $ 13,834 $ 12,290 EMEA 1,606 1,312 3,095 2,441 Asia-Pacific 1,151 1,059 2,319 1,970 Net revenues $ 9,503 $ 8,909 $ 19,248 $ 16,701 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
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 r ecordable or disclosable events not otherwise reported in these consolidated financial statements or the notes thereto . |
Significant Accounting Polici28
Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Significant Accounting Policies | |
Accounting Standards Adopted | Accounting Standards Adopted The Firm adopted the following accounting update on January 1, 2017. Improvements to Employee Share-Based Payme nt Accounting . This accounting update simplifies the accounting for employee share-based payments, including the recognition of forfeitures, the classification of income tax consequences, and the classification within the consolidated cash flow statements. Beginning in 2017, the income tax con sequences related to share-based payments are required to be recognized in Provision for income taxes in the consolidated income statements upon the conversion of employee share-based awards instead of additional paid-in capital. The impact of the income tax consequences upon conversion of the awards may be either a benefit or a provision. Conversion of employee share-based awards to Firm shares will primarily occur in the first quarter of ea ch year. The impact of recognizing excess tax benefits upon conversion of awards in the quarter in which the accounting update was adopted (three months ended March 31, 2017) was a $ 112 million benefit to Provision for income taxes. The classification of c ash flows from excess tax benefits was moved from the financing section to the operating section of the consolidated cash flow statements, and was applied on a retrospective basis. In addition, this accounting update permits an entity to elect whether to continue to estimate the total forfeitures, or to account for forfeitures on an actual basis as they occur. The Firm has elected to account for forfeitures on an actual basis as they occur. This change is required to be applied using a modified retrospecti ve approach, and upon adoption, the Firm recorded a cumulative catch-up a djustment, decreasing Retained e arnings by approximately $ 30 million net of tax, increasing A dditional paid-in capital by approximately $ 45 million and increasing deferred tax assets by approximately $ 15 million . |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 At June 30, 2017 $ in millions Level 1 Level 2 Level 3 Netting 4 Total Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 27,473 $ — $ — $ — $ 27,473 U.S. agency securities 2,148 25,832 — — 27,980 Total U.S. government and agency securities 29,621 25,832 — — 55,453 Other sovereign government obligations 1 19,553 5,382 100 — 25,035 Corporate and other debt: State and municipal securities — 2,572 9 — 2,581 Residential mortgage-, commercial mortgage- and asset- backed securities — 2,564 264 — 2,828 Corporate bonds — 15,338 449 — 15,787 Collateralized debt and loan obligations — 305 58 — 363 Loans and lending commitments 2 — 4,361 4,864 — 9,225 Other debt — 2,269 186 — 2,455 Total corporate and other debt — 27,409 5,830 — 33,239 Corporate equities 3 127,252 394 500 — 128,146 Securities received as collateral 14,402 6 — — 14,408 Derivative and other contracts: Interest rate 623 254,677 1,850 — 257,150 Credit — 9,049 423 — 9,472 Foreign exchange 100 54,895 62 — 55,057 Equity 803 41,506 3,073 — 45,382 Commodity and other 1,647 6,705 4,071 — 12,423 Netting 4 (2,976) (297,356) (2,360) (46,652) (349,344) Total derivative and other contracts 197 69,476 7,119 (46,652) 30,140 Investments 5 305 243 946 — 1,494 Physical commodities — 134 — — 134 Total trading assets 5 191,330 128,876 14,495 (46,652) 288,049 Investment securities— AFS 22,018 28,470 — — 50,488 Securities purchased under agreements to resell — 102 — — 102 Intangible assets — 3 — — 3 Total assets at fair value 6 $ 213,348 $ 157,451 $ 14,495 $ (46,652) $ 338,642 At June 30, 2017 $ in millions Level 1 Level 2 Level 3 Netting 4 Total Liabilities at Fair Value Deposits $ — $ 51 $ 79 $ — $ 130 Short-term borrowings — 582 — — 582 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 16,142 — — — 16,142 U.S. agency securities 439 84 — — 523 Total U.S. government and agency securities 16,581 84 — — 16,665 Other sovereign government obligations 1 25,411 1,118 — — 26,529 Corporate and other debt: Corporate bonds — 6,653 13 — 6,666 Other debt — 316 2 — 318 Total corporate and other debt — 6,969 15 — 6,984 Corporate equities 3 36,338 81 27 — 36,446 Obligation to return securities received as collateral 21,471 9 1 — 21,481 Derivative and other contracts: Interest rate 551 233,943 880 — 235,374 Credit — 9,677 728 — 10,405 Foreign exchange 35 58,070 60 — 58,165 Equity 699 44,996 1,980 — 47,675 Commodity and other 1,847 6,757 2,562 — 11,166 Netting 4 (2,976) (297,356) (2,360) (33,388) (336,080) Total derivative and other contracts 156 56,087 3,850 (33,388) 26,705 Total trading liabilities 99,957 64,348 3,893 (33,388) 134,810 Securities sold under agreements to repurchase — 590 148 — 738 Other secured financings — 5,487 244 — 5,731 Long-term borrowings 67 40,513 2,646 — 43,226 Total liabilities at fair value 6 $ 100,024 $ 111,571 $ 7,010 $ (33,388) $ 185,217 At December 31, 2016 $ in millions Level 1 Level 2 Level 3 Netting 4 Total Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 25,457 $ — $ — $ — $ 25,457 U.S. agency securities 2,122 20,392 74 — 22,588 Total U.S. government and agency securities 27,579 20,392 74 — 48,045 Other sovereign government obligations 14,005 5,497 6 — 19,508 Corporate and other debt: State and municipal securities — 2,355 250 — 2,605 Residential mortgage-, commercial mortgage- and asset-backed securities — 1,691 217 — 1,908 Corporate bonds — 11,051 232 — 11,283 Collateralized debt and loan obligations — 602 63 — 665 Loans and lending commitments 2 — 3,580 5,122 — 8,702 Other debt — 1,360 180 — 1,540 Total corporate and other debt — 20,639 6,064 — 26,703 Corporate equities 3 117,857 333 445 — 118,635 Securities received as collateral 13,717 19 1 — 13,737 Derivative and other contracts: Interest rate 1,131 300,406 1,373 — 302,910 Credit — 11,727 502 — 12,229 Foreign exchange 231 74,921 13 — 75,165 Equity 1,185 35,736 1,708 — 38,629 Commodity and other 2,808 6,734 3,977 — 13,519 Netting 4 (4,378) (353,543) (1,944) (51,381) (411,246) Total derivative and other contracts 977 75,981 5,629 (51,381) 31,206 Investments 5 237 197 958 — 1,392 Physical commodities — 112 — — 112 Total trading assets 5 174,372 123,170 13,177 (51,381) 259,338 Investment securities— AFS 29,120 34,050 — — 63,170 Securities purchased under agreements to resell — 302 — — 302 Intangible assets — 3 — — 3 Total assets at fair value 6 $ 203,492 $ 157,525 $ 13,177 $ (51,381) $ 322,813 At December 31, 2016 $ in millions Level 1 Level 2 Level 3 Netting 4 Total Liabilities at Fair Value Deposits $ — $ 21 $ 42 $ — $ 63 Short-term borrowings — 404 2 — 406 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 10,745 — — — 10,745 U.S. agency securities 891 61 — — 952 Total U.S. government and agency securities 11,636 61 — — 11,697 Other sovereign government obligations 20,658 2,430 — — 23,088 Corporate and other debt: Corporate bonds — 5,572 34 — 5,606 Other debt — 549 2 — 551 Total corporate and other debt — 6,121 36 — 6,157 Corporate equities 3 37,611 29 34 — 37,674 Obligation to return securities received as collateral 20,236 25 1 — 20,262 Derivative and other contracts: Interest rate 1,244 285,379 953 — 287,576 Credit — 12,550 875 — 13,425 Foreign exchange 17 75,510 56 — 75,583 Equity 1,162 37,828 1,524 — 40,514 Commodity and other 2,663 6,845 2,377 — 11,885 Netting 4 (4,378) (353,543) (1,944) (39,803) (399,668) Total derivative and other contracts 708 64,569 3,841 (39,803) 29,315 Physical commodities — 1 — — 1 Total trading liabilities 90,849 73,236 3,912 (39,803) 128,194 Securities sold under agreements to repurchase — 580 149 — 729 Other secured financings — 4,607 434 — 5,041 Long-term borrowings 47 36,677 2,012 — 38,736 Total liabilities at fair value 6 $ 90,896 $ 115,525 $ 6,551 $ (39,803) $ 173,169 AFS—Available for sale At June 30, 2017 , the Firm transferred from Level 2 to Level 1 $ 1.3 billion and $ 1.8 billion of Trading assets-Other sovereign government obligations and Trading liabilities-Other sovereign government obligations, respectively, due to increased market activity in these instruments. At June 30, 2017 , l oans held at fair value consisted of $ 6,775 million of corporate loans, $ 662 million of residential real estate loans and $ 1,788 million of wholesale real estat e loans. At December 31, 2016, l oans held at fair value consisted of $ 7,2 17 mil lion of corporate loans, $ 966 million of residential real estate loans and $ 519 million of wholesale real estate loans. For trading purposes, the Firm holds or sells short equity securities issued by entities in diverse industries and of varying sizes. Fo r 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 “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. Amounts exclude certain investments that are measured at fair value using the net asset value (“ NAV ”) per share, which are not classified in the fair value hierarchy. For additional disclosure about such investments, see “Fair Value of Investments Measured at N AV ” herein . Amounts exclude the unsettled fair value on long futures contracts of $ 852 million at June 30, 2017 and $ 784 million at December 31, 2016 included in Customer and other receivables in the consolidated balance sheets and unsettled fair value of short futu re s contracts of $ 425 million at June 30, 2017 and $ 174 million at December 31, 2016 in Customer and other payables in the consolidated balance sheets. These contracts are primarily: classified as Level 1 in the fair value hierarchy, actively traded, and valued based on quoted prices from the exchange. |
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 $ in millions Beginning Balance at March 31, 2017 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at June 30, 2017 Unrealized Gains (Losses) at June 30, 2017 Assets at Fair Value Trading assets: U.S. agency securities $ 42 $ — $ — $ — $ — $ (42) $ — $ — Other sovereign government obligations 65 — 87 (52) — — 100 — Corporate and other debt: State and municipal securities 55 3 3 (52) — — 9 — Residential mortgage-, commercial mortgage- and asset backed securities 216 36 32 (44) (5) 29 264 8 Corporate bonds 445 2 144 (161) — 19 449 (2) Collateralized debt and loan obligations 78 (2) 5 (23) (1) 1 58 (2) Loans and lending commitments 4,479 27 1,242 (417) (581) 114 4,864 11 Other debt 194 33 57 (108) — 10 186 30 Total corporate and other debt 5,467 99 1,483 (805) (587) 173 5,830 45 Corporate equities 309 8 101 (59) — 141 500 9 Securities received as collateral 1 — — (1) — — — — Net derivative and other contracts 3 : Interest rate 298 35 28 (27) 637 (1) 970 58 Credit (351) 28 — — 16 2 (305) 24 Foreign exchange (71) 53 1 (1) 22 (2) 2 64 Equity 217 185 677 (171) 80 105 1,093 189 Commodity and other 1,503 154 3 — (108) (43) 1,509 79 Total net derivative and other contracts 1,596 455 709 (199) 647 61 3,269 414 Investments 961 11 20 (25) 4 (25) 946 7 Liabilities at Fair Value Deposits $ 56 $ — $ — $ 23 $ — $ — $ 79 $ — Trading liabilities: Corporate and other debt: Corporate bonds 34 — (135) 124 — (10) 13 (1) Other debt 2 — — — — — 2 — Total corporate and other debt 36 — (135) 124 — (10) 15 (1) Corporate equities — (12) (34) 44 — 5 27 (11) Obligation to return securities received as collateral 2 — (2) 1 — — 1 — Securities sold under agreements to repurchase 148 — — — — — 148 — Other secured financings 203 (4) — 38 (1) — 244 (4) Long-term borrowings 2,092 (45) — 694 (145) (40) 2,646 (49) $ in millions Beginning Balance at March 31, 2016 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at June 30, 2016 Unrealized Gains (Losses) at June 30, 2016 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-, commercial mortgage- and asset backed securities 355 (4) 7 (87) — 84 355 (14) 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 3 : Interest rate 169 (159) 2 (7) 42 (282) (235) (157) Credit (723) 65 1 — 93 (550) (1,114) 53 Foreign exchange 126 (58) — — (94) 25 (1) (47) Equity (1,832) 168 50 (140) 263 18 (1,473) (106) Commodity and other 1,200 211 5 (4) (88) (37) 1,287 130 Total net derivative and other contracts (1,060) 227 58 (151) 216 (826) (1,536) (127) 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) Other debt 5 1 (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 $ in millions Beginning Balance at December 31, 2016 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at June 30, 2017 Unrealized Gains (Losses) at June 30, 2017 Assets at Fair Value Trading assets: U.S. agency securities $ 74 $ (1) $ — $ (240) $ — $ 167 $ — $ — Other sovereign government obligations 6 — 98 (4) — — 100 — Corporate and other debt: State and municipal securities 250 3 3 (77) — (170) 9 — Residential mortgage-, commercial mortgage- and asset backed securities 217 44 78 (83) (16) 24 264 27 Corporate bonds 232 (2) 241 (98) — 76 449 (1) Collateralized debt and loan obligations 63 (3) 11 (12) (2) 1 58 (3) Loans and lending commitments 5,122 89 1,596 (1,002) (1,146) 205 4,864 41 Other debt 180 36 38 (115) — 47 186 34 Total corporate and other debt 6,064 167 1,967 (1,387) (1,164) 183 5,830 98 Corporate equities 445 10 97 (158) — 106 500 15 Securities received as collateral 1 — — (1) — — — — Net derivative and other contracts 3 : Interest rate 420 (66) 47 (27) 652 (56) 970 (55) Credit (373) 1 — — 62 5 (305) (13) Foreign exchange (43) 23 1 (1) 8 14 2 43 Equity 184 118 758 (158) 121 70 1,093 200 Commodity and other 1,600 104 9 (19) (188) 3 1,509 (76) Total net derivative and other contracts 1,788 180 815 (205) 655 36 3,269 99 Investments 958 19 82 (28) (63) (22) 946 11 Liabilities at Fair Value Deposits $ 42 $ (1) $ — $ 36 $ — $ — $ 79 $ (1) Short-term borrowings 2 — — — (2) — — — Trading liabilities: Corporate and other debt: Corporate bonds 34 — (164) 129 — 14 13 — Other debt 2 — — — — — 2 — Total corporate and other debt 36 — (164) 129 — 14 15 — Corporate equities 34 — (63) 5 — 51 27 — Obligation to return securities received as collateral 1 — — — — — 1 — Securities sold under agreements to repurchase 149 1 — — — — 148 1 Other secured financings 434 (23) — 52 (221) (44) 244 (16) Long-term borrowings 2,012 (104) — 981 (286) (165) 2,646 (95) $ in millions Beginning Balance at December 31, 2015 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at June 30, 2016 Unrealized Gains (Losses) at June 30, 2016 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-, commercial mortgage- and asset backed securities 438 (36) 26 (170) — 97 355 (33) 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 3 : Interest rate 260 305 3 (21) (60) (722) (235) 205 Credit (844) (343) 1 — 153 (81) (1,114) (360) Foreign exchange 141 (109) — — (201) 168 (1) (82) Equity (2,031) (321) 71 (184) 1,121 (129) (1,473) (434) Commodity and other 1,050 297 7 (4) (176) 113 1,287 210 Total net derivative and other contracts (1,424) (171) 82 (209) 837 (651) (1,536) (461) 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) Loan originations and consolidations of VIEs are included in purchases and deconsolidations of VIEs are included in settlements. Amounts related to entering into Net derivatives and other contracts, Deposits, Short-term borrowings, Other secured financings and Long-term borrowings primarily represent issuances. Amounts for other line items primarily represent sales. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Deriv ative and other contracts . |
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements | Valuation Techniques and Sensitivity of Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Predominant Valuation Techniques/ Significant Unobservable Inputs Range (Weighted Averages or Simple Averages/Median) 1 $ in millions At June 30, 2017 At December 31, 2016 Recurring Fair Value Measurement Assets at Fair Value U.S. agency securities ( $- and $74) Comparable pricing: Comparable bond price N/A 96 to 105 points (102 points) Other sovereign government obligations ($100 and $6) Comparable pricing: Comparable bond price 92 to 99 points (96 points) N/M State and municipal securities ($9 and $250) Comparable pricing: Comparable bond price N/M 53 to 100 points (91 points) Residential mortgage-, commercial mortgage- and asset-backed securities ($264 and $217) Comparable pricing: Comparable bond price 0 to 95 points (24 points) 0 to 86 points (27 points) Corporate bonds ($449 and $232) Comparable pricing : Comparable bond price 2 to 133 points (87 points) 3 to 130 points (70 points) Option model: At the money volatility 15% to 34% (24%) 23% to 33% (30%) Collateralized debt and loan obligations ($58 and $63) Comparable pricing : Comparable bond price 0 to 65 points (35 points) 0 to 103 points (50 points) Correlation model: Credit correlation 42% to 49% (44%) N/M Loans and lending commitments ($4,864 and $5,122) Corporate loan model: Credit spread N/M 402 to 672 bps (557 bps) Expected recovery: Asset coverage 36% to 100% (85%) 43% to 100% (83%) Option model: Volatility skew -1% N/M Margin loan model : Discount rate 1% to 5% (2%) 2% to 8% (3%) Volatility skew 10% to 32% (18%) 21% to 63% (33%) Comparable pricing: Comparable loan price 55 to 104 points (95 points) 45 to 100 points (84 points) Discounted cash flow: Implied weighted average cost of capital N/M 5% Capitalization rate N/M 4% to 10% (4%) Other debt ($186 and $180) Option model: At the money volatility 17% to 52% (44%) 16% to 52% (52%) Discounted cash flow: Discount rate 9% to 12% (11%) 7% to 12% (11%) Comparable pricing: Comparable loan price N/M 1 to 74 points (23 points) Corporate equities ($500 and $445) Comparable pricing: Comparable equity price 100% 100% Net derivative and other contracts 2 : Interest rate ($970 and $420) Option model : Interest rate - Foreign exchange correlation N/M 28% to 58% (44% / 43%) Interest rate volatility skew 26% to 94% (42% / 41%) 19% to 117% (55% / 56%) Interest rate quanto correlation N/M -17% to 31% (1% / -5%) Interest rate curve correlation N/M 28% to 96% (68% / 72%) Inflation volatility 24% to 63% (44% / 41%) 23% to 55% (40% / 39%) Interest rate - inflation correlation -48% to -27% (-36% / -34%) N/M Interest rate curve 1% N/M Credit ($(305) and $(373)) Comparable pricing: Cash synthetic basis 4 to 6 points (5 points) 5 to 12 points (11 points) Comparable bond price N/M 0 to 70 points (23 points) Correlation model : Credit correlation 37% to 78% (48%) 32% to 70% (45%) Foreign exchange 3 ( $2 and $(43)) Option model: Interest rate - Foreign exchange correlation 27% to 54% (44% / 44%) 28% to 58% (44% / 43%) Interest rate volatility skew 29% to 102% (47% / 46%) 34% to 117% (55% / 56%) Interest rate quanto correlation N/M -17% to 31% (1% / -5%) Equity 3 ( $1,093 and $184) Option model: At the money volatility 6% to 57% (33%) 7% to 66% (33%) Volatility skew -3% to 1% (-1%) -4% to 0% (-1%) Equity - Equity correlation 5% to 99% (78%) 25% to 99% (73%) Equity - Foreign exchange correlation -70% to 9% (-30%) -63% to 30% (-43%) Equity - Interest rate correlation -7% to 52% (23% / 24%) -8% to 52% (12% / 4%) Predominant Valuation Techniques/ Significant Unobservable Inputs Range (Weighted Averages or Simple Averages/Median) 1 $ in millions At June 30, 2017 At December 31, 2016 Commodity and other($1,509 and $1,600) Option model: Forward power price $6 to $87 ($30) per MWh $7 to $90 ($32) per MWh Commodity volatility 6% to 62% (17%) 6% to 130% (18%) Cross-commodity correlation 5% to 99% (92%) 5% to 99% (92%) Investments ($946 and $958) Discounted cash flow: Implied weighted average cost of capital N/M 10% Exit multiple 10 times 10 to 24 times (11 times) Market approach: EBITDA multiple 8 to 24 times (13 times) 6 to 24 times (12 times) Comparable pricing : Comparable equity price 75% to 100% (90%) 75% to 100% (93%) Liabilities at Fair Value Deposits ($79 and $42) Option model: At the money volatility 15% to 50% (24%) N/M Volatility skew -1% to 0% (-1%) N/M Securities sold under agreements to repurchase ($148 and $149) Discounted cash flow: Funding spread 131 to 145 bps (136 bps) 118 to 127 bps (121 bps) Other secured financings ($244 and $434) Discounted cash flow: Funding spread 48 to 80 bps (64 bps) 63 to 92 bps (78 bps) Option model: Volatility skew -1% -1% At the money volatility 10% to 40% (26%) N/M Discounted cash flow : Discount rate N/M 4% Long-term borrowings ($2,646 and $2,012) Option model : At the money volatility 6% to 42% (26%) 7% to 42% (30%) Volatility skew -3% to 1% (-1%) -2% to 0% (-1%) Equity - Equity correlation 36% to 98% (71%) 35% to 99% (84%) Equity - Foreign exchange correlation -72% to 13% (-29%) -63% to 13% (-40%) Option model : Interest rate volatility skew 26% to 94% (42% / 41%) 25% Equity volatility discount 9% to 12% (10% / 11%) 7% to 11% (10% / 10%) Comparable pricing: Comparable equity price 100% N/M Nonrecurring Fair Value Measurement Assets at Fair Value Loans ($1,277 and $2,443) Corporate loan model: Credit spread 90 to 563 bps (273 bps) 90 to 487 bps (208 bps) Expected recovery: Asset coverage 73% to 95% (84%) 73% to 99% (97%) bps—Basis points . One basis point equals 1/100 th of 1%. Point s— Percentage of par MWh — Megawatt hours EBITDA— Earnings before interest, taxes, depreciation and amortization N/A—Not Applicable N/M—Not Meaningful 1. A mounts represent weighted averages except where simple averages and the median of the inputs are provided when more relevant . 2. Credit valuation adjustment (“CVA”) and funding valuation adjustments (“FVA”) are included in the balance but excluded from the Valuation Technique(s) and Significant Unobservable Inputs in the previous table. CVA is a Level 3 input when the underlying counterparty credit curve is unobservable. FVA is a Level 3 input in its entirety given the lack of observability of funding spreads in the principal market . 3. Includes derivative contracts with multiple r isks ( i.e. , hybrid products). |
Fair Value of Investments Measured at NAV | Investments in Certain Funds Measured at NAV per Share At June 30, 2017 At December 31, 2016 $ in millions Fair Value Commitment Fair Value Commitment Private equity funds $ 1,588 $ 388 $ 1,566 $ 335 Real estate funds 1,050 157 1,103 136 Hedge funds 115 18 147 4 Total $ 2,753 $ 563 $ 2,816 $ 475 Nonredeemable Funds by Contractual Maturity Fair Value at June 30, 2017 $ in millions Private Equity Real Estate Less than 5 years $ 297 $ 80 5-10 years 745 644 Over 10 years 546 326 Total $ 1,588 $ 1,050 Hedge Funds Redemption Frequency Fair Value At June 30, 2017 Quarterly 57% Every six months —% Greater than six months 21% Subject to lock-up provisions 1 22% Percentage of hedge fund investments that cannot be redeemed due to a gate provision 2 23% R emaining restriction period for these investments was primarily over three year s. Gate provision has been imposed by the he dge fund manager primarily for indefinite periods. |
Earnings Impact of Instruments under the Fair Value Option | Earnings Impact of Instruments under the Fair Value Option Interest Trading Income $ in millions Revenues (Expense) Net Revenues Three Months Ended June 30, 2017 Securities purchased under agreements to resell $ (1) $ 1 $ ─ Deposits 1 ─ ─ ─ Short-term borrowings 1 6 (1) 5 Securities sold under agreements to repurchase 1 (3) (4) (7) Long-term borrowings 1 (901) (111) (1,012) Interest Trading Income $ in millions Revenues (Expense) Net Revenues 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, 2017 Securities purchased under agreements to resell $ (1) $ 2 $ 1 Deposits 1 (1) ─ (1) Short-term borrowings 1 (9) (1) (10) Securities sold under agreements to repurchase 1 (1) (8) (9) Long-term borrowings 1 (2,511) (230) (2,741) 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) 1. Gains (losses) in all periods 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. |
Gains (Losses) Due to Changes in Instrument-Specific Credit Risk | Gains (Losses) Due to Changes in Instrument-Specific Credit Risk Three Months Ended June 30, 2017 2016 $ in millions Trading Revenues OCI Trading Revenues OCI Short-term and long-term borrowings 1 $ (4) $ (281) $ ─ $ 226 Securities sold under agreements to repurchase 1 ─ ─ ─ (1) Loans and other debt 2 48 ─ (14) ─ Lending commitments 3 ─ ─ 2 ─ Six Months Ended June 30, 2017 2016 $ in millions Trading Revenues OCI Trading Revenues OCI Short-term and long-term borrowings 1 $ (8) $ (267) $ 41 $ 545 Securities sold under agreements to repurchase 1 ─ (3) ─ 3 Loans and other debt 2 45 ─ (114) ─ Lending commitments 3 ─ ─ 3 ─ $ in millions June 30, 2017 December 31, 2016 Cumulative pre-tax DVA gain (loss) recognized in AOCI $ (1,191) $ (921) OCI—Other comprehensive income (loss) 1. Unrealized DVA gains (losses) are recorded in OCI and when such gains (losses) are realized they are recorded in Trading revenues . Se e Note 2 to the consolidated financial statements in the 2016 Form 10-K and Note 14 for further information. 2. Loans and othe r debt instrument-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses, such as those due to changes in interest rates. 3. Gains (losses) on lending commitments were generally determined based on the di fferen ce between estimated expected client yields and contractual yields at each respective period-end. |
Short-term and Long-term Borrowings Measured at Fair Value on a Recurring Basis | Short-Term and Long-Term Borrowings Measured at Fair Value on a Recurring Basis At At June 30, December 31, $ in millions 2017 2016 Business Unit Responsible for Risk Management Equity $ 23,605 $ 21,066 Interest rates 18,502 16,051 Foreign exchange 760 1,114 Credit 709 647 Commodities 232 264 Total $ 43,808 $ 39,142 |
Net Difference of Contractual Principal Amount Over Fair Value | Net Difference of Contractual Principal Amount Over Fair Value At At June 30, December 31, $ in millions 2017 2016 Loans and other debt 1 $ 12,986 $ 13,495 Loans 90 or more days past due and/or on nonaccrual status 1 11,337 11,502 Short-term and long-term borrowings 2 621 720 1. The majority of the difference between principal and fair value amounts for loans and other debt relates to distressed debt positions purchased 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 a reference price or index |
Fair Value of Loans in Nonaccrual Status | Fair Value Loans on Nonaccrual Status At At June 30, December 31, $ in millions 2017 2016 Nonaccrual loans $ 1,326 $ 1,536 Nonaccrual loans 90 or more days past due $ 796 $ 787 |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | Current Quarter Gains (Losses) Three Months Ended June 30, $ in millions 2017 1 2016 1 Assets Loans 2 $ 20 $ (34) Other Assets—Other investments 3 ─ (38) Other assets—Premises, equipment and software costs 4 (1) (22) Total $ 19 $ (94) Liabilities Other liabilities and accrued expenses 2 — Lending commitments $ 21 $ 13 Total $ 21 $ 13 Current Year Period Gains (Losses) Six Months Ended June 30, $ in millions 2017 1 2016 1 Assets Loans 2 $ 44 $ (131) Other Assets—Other investments 3 ─ (40) Other assets—Premises, equipment and software costs 4 (6) (27) Total $ 38 $ (198) Liabilities Other liabilities and accrued expenses 2 — Lending commitments $ 48 $ 24 Total $ 48 $ 24 Gains and losses for Loans and Other assets—Other investments are classified in Other revenues. For other items, gains and losses are recorded in Other revenues if the item is held for sale, otherwise Other expenses. Non-recurring changes in the fair value of loans and lending commitments were calculated as follows: for the held for investment category, based on the value of the underlying collateral; and for the held for sale category, based on recently executed transactions, market price quotations, valu ation 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 wher e such transactions and quotations are unobservable. Losses related to Other assets— Other investments were determined using techniques that included discounted cash flow models, methodologies that incorporate multiples of certain comparable companies and r ecently executed transactions. Losses related to Other assets—Premises, equipment and software costs were determined using techniques that included a default recovery analysis and recently executed transactions. Carrying and Fair Values At June 30, 2017 Fair Value by Level $ in millions Total Level 2 Level 3 1 Assets Loans $ 2,632 $ 1,355 $ 1,277 Total assets $ 2,632 $ 1,355 $ 1,277 Liabilities Other liabilities and accrued expenses— Lending commitments $ 212 $ 164 $ 48 Total liabilities $ 212 $ 164 $ 48 At December 31, 2016 Fair Value by Level $ in millions Total Level 2 Level 3 1 Assets Loans $ 4,913 $ 2,470 $ 2,443 Other assets—Other investments 123 ─ 123 Other assets—Premises, equipment and software costs 25 22 3 Total assets $ 5,061 $ 2,492 $ 2,569 Liabilities Other liabilities and accrued expenses— Lending commitments $ 226 $ 166 $ 60 Total liabilities $ 226 $ 166 $ 60 Refer to “Significant Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements” section herein for details of the significant unobservable inputs used for nonrecurring fair value measurement. |
Financial Instruments Not Measured at Fair Value | At June 30, 2017 Carrying Fair Value $ in millions Value Level 1 Level 2 Level 3 Total Financial Assets Cash and due from banks $ 25,008 $ 25,008 $ — $ — $ 25,008 Interest bearing deposits with banks 19,651 19,651 — — 19,651 Investment securities— HTM 21,088 8,255 12,319 123 20,697 Securities purchased under agreements to resell 97,306 — 92,537 4,718 97,255 Securities borrowed 126,722 — 126,722 1 126,723 Customer and other receivables 1 49,292 — 45,052 4,110 49,162 Loans 2 97,639 — 20,319 78,579 98,898 Other assets 3 30,171 30,171 — — 30,171 Financial Liabilities Deposits $ 144,783 $ — $ 144,783 $ — $ 144,783 Short-term borrowings 334 — 334 — 334 Securities sold under agreements to repurchase 49,959 — 46,452 3,488 49,940 Securities loaned 16,862 — 16,477 401 16,878 Other secured financings 10,911 — 9,961 956 10,917 Customer and other payables 1 192,973 — 192,973 — 192,973 Long-term borrowings 140,886 — 145,544 51 145,595 At December 31, 2016 Carrying Fair Value $ in millions Value Level 1 Level 2 Level 3 Total Financial Assets Cash and due from banks $ 22,017 $ 22,017 $ — $ — $ 22,017 Interest bearing deposits with banks 21,364 21,364 — — 21,364 Investment securities— HTM 16,922 5,557 10,896 — 16,453 Securities purchased under agreements to resell 101,653 — 97,825 3,830 101,655 Securities borrowed 125,236 — 125,093 147 125,240 Customer and other receivables 1 41,679 — 36,962 4,575 41,537 Loans 2 94,248 — 20,906 74,121 95,027 Other assets 3 33,979 33,979 — — 33,979 Financial Liabilities Deposits $ 155,800 $ — $ 155,800 $ — $ 155,800 Short-term borrowings 535 — 535 — 535 Securities sold under agreements to repurchase 53,899 — 50,941 2,972 53,913 Securities loaned 15,844 — 15,853 — 15,853 Other secured financings 6,077 — 4,792 1,290 6,082 Customer and other payables 1 187,497 — 187,497 — 187,497 Long-term borrowings 126,039 — 129,826 51 129,877 HTM—Held to maturity Accrued interest, fees, and dividend receivables and payables where carrying value approximates fair value have been excluded. Amounts include loans measured at fair value on a non-recurring basi s . Cash deposited with clearing organizations or segregated under federal and other regulations or requirements . |
Lending Commitments-Held for investment and Held for sale | Lending commitments—Held for investment and Held for sale Commitment Fair Value $ in millions amount 1 Total Level 2 Level 3 June 30, 2017 $ 95,090 $ 917 $ 706 $ 211 December 31, 2016 97,409 1,241 973 268 For further discussion on lending commitments, see Note 11. |
Derivative Instruments and He30
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value | Derivative Fair Values At June 30, 2017 Assets $ in millions Bilateral OTC Cleared OTC 1 Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 1,547 $ 937 $ — $ 2,484 Foreign exchange contracts 48 8 — 56 Total 1,595 945 — 2,540 Not designated as accounting hedges 2 Interest rate contracts 182,333 72,140 193 254,666 Credit contracts 7,282 2,190 — 9,472 Foreign exchange contracts 54,357 544 100 55,001 Equity contracts 24,832 — 20,550 45,382 Commodity and other contracts 10,197 — 2,226 12,423 Total 279,001 74,874 23,069 376,944 Total gross derivatives $ 280,596 $ 75,819 $ 23,069 $ 379,484 Amounts offset Counterparty netting (215,065) (71,178) (20,307) (306,550) Cash collateral netting (38,973) (3,821) — (42,794) Total in Trading assets $ 26,558 $ 820 $ 2,762 $ 30,140 Amounts not offset 3 Financial instruments collateral (11,213) — — (11,213) Other cash collateral (10) — — (10) Net amounts 4 $ 15,335 $ 820 $ 2,762 $ 18,917 At December 31, 2016 Assets $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 1,924 $ 1,049 $ — $ 2,973 Foreign exchange contracts 249 18 — 267 Total 2,173 1,067 — 3,240 Not designated as accounting hedges 5 Interest rate contracts 200,336 99,217 384 299,937 Credit contracts 9,837 2,392 — 12,229 Foreign exchange contracts 73,645 1,022 231 74,898 Equity contracts 20,710 — 17,919 38,629 Commodity and other contracts 9,792 — 3,727 13,519 Total 314,320 102,631 22,261 439,212 Total gross derivatives $ 316,493 $ 103,698 $ 22,261 $ 442,452 Amounts offset Counterparty netting (243,488) (100,477) (19,607) (363,572) Cash collateral netting (45,875) (1,799) — (47,674) Total in Trading assets $ 27,130 $ 1,422 $ 2,654 $ 31,206 Amounts not offset 3 Financial instruments collateral (10,293) — — (10,293) Other cash collateral (124) — — (124) Net amounts 4 $ 16,713 $ 1,422 $ 2,654 $ 20,789 OTC—Over–the-counter 1. Effective in the first quarter of 2017, the Chicago Mercantile Exchange (“CME”) amended its rulebook for cleared OTC derivatives, resulting in the characterization of variation margin transfers as settlement payments as opposed to cash posted as collateral. In the quarter of adoption, the cleared OTC gross derivative assets and liabilities, and related counterparty and cash collateral netting amounts in total decreased by approximately $ 13 billion and $ 20 billion , respectively. 2. Notional amounts include gross notionals related to open long and short f utures contracts of $ 2,765 billion and $ 732 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 852 million and $ 425 million is included i n Customer and other receivables and Customer and other payables, respectively, in the consolidated balance sheets. 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 offsetting accounting guidance. 4 . Amounts include transactions that are either not subject to master netting agreements or collateral agreements or are subjec t to such agreements but the Firm has not determined the agreements to be legally enforceable as follows: $ 3.3 billion of derivative assets and $ 3.5 billion of derivative liabilities at June 30, 2017 and $ 3.7 bil lion of derivative assets and $ 3.5 billion of derivative liabilities at December 31, 2016 . 5. Notional amounts include gross notionals re lated to open long and short futures contracts of $ 2,088 billion and $ 332 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 784 million and $ 174 million is included in Customer and other receivables and Customer and other payables, respectively, in the consolidated balance sheets. |
Schedule Of Derivative Liabilities At Fair Value | Liabilities $ in millions Bilateral OTC Cleared OTC 1 Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 60 $ 757 $ — $ 817 Foreign exchange contracts 138 40 — 178 Total 198 797 — 995 Not designated as accounting hedges 2 Interest rate contracts 166,210 68,206 141 234,557 Credit contracts 8,132 2,273 — 10,405 Foreign exchange contracts 57,314 625 48 57,987 Equity contracts 27,653 — 20,022 47,675 Commodity and other contracts 8,881 — 2,285 11,166 Total 268,190 71,104 22,496 361,790 Total gross derivatives $ 268,388 $ 71,901 $ 22,496 $ 362,785 Amounts offset Counterparty netting (215,065) (71,178) (20,307) (306,550) Cash collateral netting (29,136) (394) — (29,530) Total in Trading liabilities $ 24,187 $ 329 $ 2,189 $ 26,705 Amounts not offset 3 Financial instruments collateral (6,276) — (168) (6,444) Other cash collateral (26) (58) — (84) Net amounts 4 $ 17,885 $ 271 $ 2,021 $ 20,177 Liabilities $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 77 $ 647 $ — $ 724 Foreign exchange contracts 15 25 — 40 Total 92 672 — 764 Not designated as accounting hedges 5 Interest rate contracts 183,063 103,392 397 286,852 Credit contracts 11,024 2,401 — 13,425 Foreign exchange contracts 74,575 952 16 75,543 Equity contracts 22,531 — 17,983 40,514 Commodity and other contracts 8,303 — 3,582 11,885 Total 299,496 106,745 21,978 428,219 Total gross derivatives $ 299,588 $ 107,417 $ 21,978 $ 428,983 Amounts offset Counterparty netting (243,488) (100,477) (19,607) (363,572) Cash collateral netting (30,405) (5,691) — (36,096) Total in Trading liabilities $ 25,695 $ 1,249 $ 2,371 $ 29,315 Amounts not offset 3 Financial instruments collateral (7,638) — (585) (8,223) Other cash collateral (10) (1) — (11) Net amounts 4 $ 18,047 $ 1,248 $ 1,786 $ 21,081 OTC—Over–the-counter 1. Effective in the first quarter of 2017, the Chicago Mercantile Exchange (“CME”) amended its rulebook for cleared OTC derivatives, resulting in the characterization of variation margin transfers as settlement payments as opposed to cash posted as collateral. In the quarter of adoption, the cleared OTC gross derivative assets and liabilities, and related counterparty and cash collateral netting amounts in total decreased by approximately $ 13 billion and $ 20 billion , respectively. 2. Notional amounts include gross notionals related to open long and short f utures contracts of $ 2,765 billion and $ 732 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 852 million and $ 425 million is included i n Customer and other receivables and Customer and other payables, respectively, in the consolidated balance sheets. 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 offsetting accounting guidance. 4 . Amounts include transactions that are either not subject to master netting agreements or collateral agreements or are subjec t to such agreements but the Firm has not determined the agreements to be legally enforceable as follows: $ 3.3 billion of derivative assets and $ 3.5 billion of derivative liabilities at June 30, 2017 and $ 3.7 bil lion of derivative assets and $ 3.5 billion of derivative liabilities at December 31, 2016 . 5. Notional amounts include gross notionals re lated to open long and short futures contracts of $ 2,088 billion and $ 332 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 784 million and $ 174 million is included in Customer and other receivables and Customer and other payables, respectively, in the consolidated balance sheets. |
Schedule of Notional Amounts of Outstanding Derivative Positions | Derivative Notionals At June 30, 2017 Assets $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 25 $ 36 $ — $ 61 Foreign exchange contracts 4 — — 4 Total 29 36 — 65 Not designated as accounting hedges 2 Interest rate contracts 3,928 7,275 3,184 14,387 Credit contracts 255 105 — 360 Foreign exchange contracts 1,779 60 10 1,849 Equity contracts 388 — 291 679 Commodity and other contracts 69 — 84 153 Total 6,419 7,440 3,569 17,428 Total gross derivatives $ 6,448 $ 7,476 $ 3,569 $ 17,493 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 2 $ 95 $ — $ 97 Foreign exchange contracts 5 1 — 6 Total 7 96 — 103 Not designated as accounting hedges 2 Interest rate contracts 3,671 5,901 1,236 10,808 Credit contracts 287 87 — 374 Foreign exchange contracts 1,869 62 23 1,954 Equity contracts 378 — 347 725 Commodity and other contracts 76 — 69 145 Total 6,281 6,050 1,675 14,006 Total gross derivatives $ 6,288 $ 6,146 $ 1,675 $ 14,109 At December 31, 2016 Assets $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 30 $ 38 $ — $ 68 Foreign exchange contracts 6 — — 6 Total 36 38 — 74 Not designated as accounting hedges 5 Interest rate contracts 3,586 6,224 2,586 12,396 Credit contracts 333 112 — 445 Foreign exchange contracts 1,580 52 13 1,645 Equity contracts 338 — 242 580 Commodity and other contracts 67 — 79 146 Total 5,904 6,388 2,920 15,212 Total gross derivatives $ 5,940 $ 6,426 $ 2,920 $ 15,286 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 2 $ 52 $ — $ 54 Foreign exchange contracts 1 1 — 2 Total 3 53 — 56 Not designated as accounting hedges 5 Interest rate contracts 3,462 6,087 897 10,446 Credit contracts 359 96 — 455 Foreign exchange contracts 1,557 48 14 1,619 Equity contracts 321 — 273 594 Commodity and other contracts 78 — 59 137 Total 5,777 6,231 1,243 13,251 Total gross derivatives $ 5,780 $ 6,284 $ 1,243 $ 13,307 2. Notional amounts include gross notionals related to open long and short f utures contracts of $ 2,765 billion and $ 732 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 852 million and $ 425 million is included i n Customer and other receivables and Customer and other payables, respectively, in the consolidated balance sheets. 5. Notional amounts include gross notionals re lated to open long and short futures contracts of $ 2,088 billion and $ 332 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 784 million and $ 174 million is included in Customer and other receivables and Customer and other payables, respectively, in the consolidated balance sheets. |
Schedule of Gains (Losses) on Fair Value Hedges | Gains (Losses) on Fair Value Hedges Recognized in Interest Expense Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Derivatives $ 138 $ 969 $ (660) $ 3,119 Borrowings (213) (993) 495 (3,282) Total $ (75) $ (24) $ (165) $ (163) |
Table of Gains (Losses) on Effective Portion of Net Investment Hedges | Gains (Losses) on Net Investment Hedges Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Foreign exchange contracts Effective portion—OCI $ (47) $ (112) $ (251) $ (336) Forward points excluded from hedge effectiveness testing—Interest income $ (9) $ (19) $ (19) $ (39) |
Schedule of Trading Revenues by Product Type | Trading Revenues by Product Type Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Interest rate contracts $ 451 $ 320 $ 1,045 $ 626 Foreign exchange contracts 197 362 432 599 Equity security and index contracts 1 1,818 1,615 3,459 2,945 Commodity and other contracts 110 20 299 (124) Credit contracts 355 429 931 765 Total $ 2,931 $ 2,746 $ 6,166 $ 4,811 1. Dividend income is included within equity security and index contracts. |
Counterparty Credit Rating and Remaining Maturity of OTC Derivative Assets | OTC Derivative Products—Trading Assets Counterparty Credit Rating and Remaining Maturity of OTC Derivative Assets Fair Value at June 30, 2017 1 Contractual Years to Maturity Total Derivative Assets $ in millions Less than 1 1-3 3-5 Over 5 Credit Rating 2 AAA $ 232 $ 308 $ 406 $ 3,168 $ 4,114 AA 1,357 1,913 2,336 10,841 16,447 A 6,487 5,123 4,342 18,625 34,577 BBB 3,417 2,685 2,001 12,737 20,840 Non-investment grade 2,753 2,104 3,070 2,247 10,174 Total $ 14,246 $ 12,133 $ 12,155 $ 47,618 $ 86,152 Fair Value at June 30, 2017 1 Total Derivative Assets Cross-Maturity and Cash Collateral Netting 3 Net Amounts Post-cash Collateral Net Amounts Post-collateral 4 $ in millions Credit Rating 2 AAA $ 4,114 $ (3,091) $ 1,023 $ 952 AA 16,447 (10,935) 5,512 2,756 A 34,577 (25,571) 9,006 5,118 BBB 20,840 (14,301) 6,539 4,908 Non-investment grade 10,174 (4,886) 5,288 2,421 Total $ 86,152 $ (58,784) $ 27,368 $ 16,155 Fair Value at December 31, 2016 1 Contractual Years to Maturity Total Derivative Assets $ in millions Less than 1 1-3 3-5 Over 5 Credit Rating 2 AAA $ 150 $ 428 $ 918 $ 2,931 $ 4,427 AA 3,177 2,383 2,942 10,194 18,696 A 9,244 6,676 5,495 21,322 42,737 BBB 4,423 3,085 2,434 13,023 22,965 Non-investment grade 2,283 1,702 1,722 1,794 7,501 Total $ 19,277 $ 14,274 $ 13,511 $ 49,264 $ 96,326 Fair Value at December 31, 2016 1 Total Derivative Assets Cross-Maturity and Cash Collateral Netting 3 Net Amounts Post-cash Collateral Net Amounts Post-collateral 4 $ in millions Credit Rating 2 AAA $ 4,427 $ (3,900) $ 527 $ 485 AA 18,696 (11,813) 6,883 4,114 A 42,737 (31,425) 11,312 6,769 BBB 22,965 (16,629) 6,336 4,852 Non-investment grade 7,501 (4,131) 3,370 1,915 Total $ 96,326 $ (67,898) $ 28,428 $ 18,135 1. Fair values shown represent the Fir m’s net exposure to counterparties related to its OTC derivative products. 2. Obligor credit ratings are determined internally 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 collateral rece ived 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 Collat eral Posted $ in millions At June 30, 2017 At December 31, 2016 Net derivative liabilities with credit risk- related contingent features $ 19,335 $ 22,939 Collateral posted 14,672 17,040 Incremental Collateral or Termination Payments upon Potential Future Ratings Downgrade $ in millions At June 30, 2017 1 One-notch downgrade $ 1,042 Two-notch downgrade 401 1. Amounts include $ 1,187 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 downgrades. |
Schedule of Credit Derivatives and Other Credit Contracts | Protection Sold and Purchased with Credit Default Swaps At June 30, 2017 Protection Sold Protection Purchased $ in millions Notional Fair Value (Asset)/ Liability Notional Fair Value (Asset)/ Liability Credit default swaps Single name $ 195,821 $ (1,274) $ 207,973 $ 1,613 Index and basket 131,476 (48) 126,594 (113) Tranched index and basket 23,519 (408) 48,605 1,163 Total $ 350,816 $ (1,730) $ 383,172 $ 2,663 Single name and non-tranched index and basket with identical underlying reference obligations $ 323,765 — $ 330,349 — At December 31, 2016 Protection Sold Protection Purchased $ in millions Notional Fair Value (Asset)/ Liability Notional Fair Value (Asset)/ Liability Credit default swaps Single name $ 266,918 $ (753) $ 269,623 $ 826 Index and basket 130,383 374 122,061 (481) Tranched index and basket 32,429 (670) 78,505 1,900 Total $ 429,730 $ (1,049) $ 470,189 $ 2,245 Single name and non-tranched index and basket with identical underlying reference obligations $ 395,536 — $ 389,221 — Credit Ratings of Reference Obligation and Maturities of Credit Protection Sold At June 30, 2017 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability 1 Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Single name credit default swaps 2 Investment grade $ 57,174 $ 52,949 $ 26,353 $ 9,523 $ 145,999 $ (1,397) Non-investment grade 22,379 18,958 7,465 1,020 49,822 123 Total single name credit default swaps 79,553 71,907 33,818 10,543 195,821 (1,274) Index and basket credit default swaps 2 Investment grade 26,972 14,044 48,806 7,914 97,736 (999) Non-investment grade 27,129 7,037 13,807 9,286 57,259 543 Total index and basket credit default swaps 54,101 21,081 62,613 17,200 154,995 (456) Total credit default swaps sold $ 133,654 $ 92,988 $ 96,431 $ 27,743 $ 350,816 $ (1,730) Other credit contracts 27 — 13 129 169 4 Total credit derivatives and other credit contracts $ 133,681 $ 92,988 $ 96,444 $ 27,872 $ 350,985 $ (1,726) At December 31, 2016 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability 1 Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Single name credit default swaps 2 Investment grade $ 79,449 $ 70,796 $ 34,529 $ 10,293 $ 195,067 $ (1,060) Non-investment grade 34,571 25,820 10,436 1,024 71,851 307 Total single name credit default swaps $ 114,020 $ 96,616 $ 44,965 $ 11,317 $ 266,918 $ (753) Index and basket credit default swaps 2 Investment grade $ 26,530 $ 21,388 $ 35,060 $ 9,096 $ 92,074 $ (846) Non-investment grade 26,135 22,983 11,759 9,861 70,738 550 Total index and basket credit default swaps $ 52,665 $ 44,371 $ 46,819 $ 18,957 $ 162,812 $ (296) Total credit default swaps sold $ 166,685 $ 140,987 $ 91,784 $ 30,274 $ 429,730 $ (1,049) Other credit contracts 49 6 — 215 270 — Total credit derivatives and other credit contracts $ 166,734 $ 140,993 $ 91,784 $ 30,489 $ 430,000 $ (1,049) 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 control credit risk. The Firm uses quantitative models and judgment to estimate the various risk parameters related to each obligor. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investment securities | |
Schedule of AFS and HTM Securities | AFS and HTM Securities At June 30, 2017 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 21,580 $ — $ 417 $ 21,163 U.S. agency securities 1 21,714 36 200 21,550 Total U.S. government and agency securities 43,294 36 617 42,713 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,536 2 42 1,496 Non-agency 1,578 11 9 1,580 Corporate bonds 1,586 13 8 1,591 Collateralized loan obligations 560 1 — 561 FFELP student loan asset- backed securities 2 2,549 7 15 2,541 Total corporate and other debt 7,809 34 74 7,769 Total AFS debt securities 51,103 70 691 50,482 AFS equity securities 15 — 9 6 Total AFS securities 51,118 70 700 50,488 HTM securities U.S. government securities: U.S. Treasury securities 8,463 9 216 8,256 U.S. agency securities 1 12,501 10 193 12,318 Total U.S. government and agency securities 20,964 19 409 20,574 Corporate and other debt: Commercial mortgage-backed securities: Non-agency 124 — 1 123 Total corporate and other debt 124 — 1 123 Total HTM securities 21,088 19 410 20,697 Total Investment securities $ 72,206 $ 89 $ 1,110 $ 71,185 At December 31, 2016 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 28,371 $ 1 $ 545 $ 27,827 U.S. agency securities 1 22,348 14 278 22,084 Total U.S. government and agency securities 50,719 15 823 49,911 Corporate and other debt: Commercial mortgage- backed securities: Agency 1,850 2 44 1,808 Non-agency 2,250 11 16 2,245 Auto loan asset-backed securities 1,509 1 1 1,509 Corporate bonds 3,836 7 22 3,821 Collateralized loan obligations 540 — 1 539 FFELP student loan asset- backed securities 2 3,387 5 61 3,331 Total corporate and other debt 13,372 26 145 13,253 Total AFS debt securities 64,091 41 968 63,164 AFS equity securities 15 — 9 6 Total AFS securities 64,106 41 977 63,170 HTM securities U.S. government securities: U.S. Treasury securities 5,839 1 283 5,557 U.S. agency securities 1 11,083 1 188 10,896 Total HTM securities 16,922 2 471 16,453 Total Investment securities $ 81,028 $ 43 $ 1,448 $ 79,623 1. U.S. agency securities consist mainly of agency-issued debt, agency mortgage pass-through pool securities and collateralized mortgage obligations. 2. 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, 2017 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 21,163 $ 417 $ — $ — $ 21,163 $ 417 U.S. agency securities 11,890 199 99 1 11,989 200 Total U.S. government and agency securities 33,053 616 99 1 33,152 617 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,063 42 — — 1,063 42 Non-agency 370 6 406 3 776 9 Corporate bonds 592 8 — — 592 8 FFELP student loan asset-backed securities 1,580 15 — — 1,580 15 Total corporate and other debt 3,605 71 406 3 4,011 74 Total AFS debt securities 36,658 687 505 4 37,163 691 AFS equity securities — — 6 9 6 9 Total AFS securities 36,658 687 511 13 37,169 700 HTM securities U.S. government and agency securities: U.S. Treasury securities 7,043 216 — — 7,043 216 U.S. agency securities 10,573 193 — — 10,573 193 Total U.S. government and agency securities 17,616 409 — — 17,616 409 Corporate and other debt: Non-agency 91 1 — — 91 1 Total corporate and other debt 91 1 — — 91 1 Total HTM securities 17,707 410 — — 17,707 410 Total Investment securities $ 54,365 $ 1,097 $ 511 $ 13 $ 54,876 $ 1,110 At December 31, 2016 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 25,323 $ 545 $ — $ — $ 25,323 $ 545 U.S. agency securities 16,760 278 125 — 16,885 278 Total U.S. government and agency securities 42,083 823 125 — 42,208 823 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,245 44 — — 1,245 44 Non-agency 763 11 594 5 1,357 16 Auto loan asset-backed securities 659 1 123 — 782 1 Corporate bonds 2,050 21 142 1 2,192 22 Collateralized loan obligations 178 — 239 1 417 1 FFELP student loan asset-backed securities 2,612 61 — — 2,612 61 Total corporate and other debt 7,507 138 1,098 7 8,605 145 Total AFS debt securities 49,590 961 1,223 7 50,813 968 AFS equity securities 6 9 — — 6 9 Total AFS securities 49,596 970 1,223 7 50,819 977 HTM securities U.S. government and agency securities: U.S. Treasury securities 5,057 283 — — 5,057 283 U.S. agency securities 10,612 188 — — 10,612 188 Total HTM securities 15,669 471 — — 15,669 471 Total Investment securities $ 65,265 $ 1,441 $ 1,223 $ 7 $ 66,488 $ 1,448 |
Schedule of Investment Securities by Contractual Maturity | Investment Securities by Contractual Maturity At June 30, 2017 $ in millions Amortized Cost Fair Value Annualized Average Yield AFS debt securities U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 3,798 $ 3,786 0.9% After 1 year through 5 years 13,090 12,923 1.2% After 5 years through 10 years 4,692 4,454 1.4% Total 21,580 21,163 U.S. agency securities: Due within 1 year 539 539 0.3% After 1 year through 5 years 3,696 3,693 0.7% After 5 years through 10 years 760 762 2.0% After 10 years 16,719 16,556 1.8% Total 21,714 21,550 Total U.S. government and agency securities 43,294 42,713 1.4% Corporate and other debt: Commercial mortgage-backed securities: Agency: Due within 1 year 49 49 1.1% After 1 year through 5 years 241 240 1.5% After 5 years through 10 years 383 385 1.2% After 10 years 863 822 1.6% Total 1,536 1,496 Non-agency: After 5 years through 10 years 36 35 2.5% After 10 years 1,542 1,545 2.1% Total 1,578 1,580 Corporate bonds: Due within 1 year 36 36 1.2% After 1 year through 5 years 1,219 1,225 2.4% After 5 years through 10 years 331 330 2.4% Total 1,586 1,591 Collateralized loan obligations: After 5 years through 10 years 362 362 1.5% After 10 years 198 199 2.4% Total 560 561 FFELP student loan asset-backed securities: After 1 year through 5 years 57 56 0.8% After 5 years through 10 years 536 532 0.8% After 10 years 1,956 1,953 1.1% Total 2,549 2,541 Total corporate and other debt 7,809 7,769 1.6% Total AFS debt securities 51,103 50,482 1.4% AFS equity securities 15 6 ― % Total AFS securities 51,118 50,488 1.4% HTM securities U.S. government securities: U.S. Treasury securities: Due within 1 year 300 300 0.7% After 1 year through 5 years 4,837 4,831 1.5% After 5 years through 10 years 2,599 2,472 1.6% After 10 years 727 653 2.3% Total 8,463 8,256 U.S. agency securities: After 10 years 12,501 12,318 2.4% Total 12,501 12,318 Corporate and other debt: Commercial mortgage-backed securities: Non-agency: After 1 year through 5 years 41 41 3.7% After 5 years through 10 years 83 82 3.8% Total 124 123 Total HTM securities 21,088 20,697 2.1% Total Investment securities $ 72,206 $ 71,185 1.6% |
Schedule of Gross Realized Gains and Losses on Sales of AFS Securities | Gross Realized Gains and Losses on Sales of AFS Securities Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Gross realized gains $ 23 $ 71 27 85 Gross realized (losses) (9) (1) (11) (3) Total $ 14 $ 70 16 82 |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Collateralized Transactions | |
Schedule of Offsetting of Certain Collaterized Transactions | Offsetting of Certain Collateralized Transactions At June 30, 2017 $ in millions Gross Amounts Amounts Offset Net Amounts Presented Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 161,364 $ (63,956) $ 97,408 $ (89,731) $ 7,677 Securities borrowed 140,136 (13,414) 126,722 (121,668) 5,054 Liabilities Securities sold under agreements to repurchase $ 114,653 $ (63,956) $ 50,697 $ (44,980) $ 5,717 Securities loaned 30,276 (13,414) 16,862 (16,632) 230 Not subject to legally enforceable master netting agreements 2 Securities purchased under agreements to resell $ 7,010 Securities borrowed 1,224 Securities sold under agreements to repurchase 5,222 Securities loaned 183 At December 31, 2016 $ in millions Gross Amounts Amounts Offset Net Amounts Presented Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 182,888 $ (80,933) $ 101,955 $ (93,365) $ 8,590 Securities borrowed 129,934 (4,698) 125,236 (118,974) 6,262 Liabilities Securities sold under agreements to repurchase $ 135,561 $ (80,933) $ 54,628 $ (47,933) $ 6,695 Securities loaned 20,542 (4,698) 15,844 (15,670) 174 Not subject to legally enforceable master netting agreements 2 Securities purchased under agreements to resell $ 7,765 Securities borrowed 2,591 Securities sold under agreements to repurchase 6,500 Securities loaned 154 1 . 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. 2 . Represents amounts within Net Amounts related to transactions that 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. |
Schedule of Gross Secured Financing Balances | Maturities and Collateral Pledged Gross Secured Financing Balances by Remaining Contractual Maturity At June 30, 2017 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase 1 $ 29,403 $ 26,884 $ 18,896 $ 39,470 $ 114,653 Securities loaned 1 16,447 1,656 1,833 10,340 30,276 Gross amount of secured financing included in the offsetting disclosure $ 45,850 $ 28,540 $ 20,729 $ 49,810 $ 144,929 Trading liabilities ― Obligation to return securities received as collateral 21,481 — — — 21,481 Total $ 67,331 $ 28,540 $ 20,729 $ 49,810 $ 166,410 At December 31, 2016 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase 1 $ 41,549 $ 36,703 $ 24,648 $ 32,661 $ 135,561 Securities loaned 1 9,487 851 2,863 7,341 20,542 Gross amount of secured financing included in the offsetting disclosure $ 51,036 $ 37,554 $ 27,511 $ 40,002 $ 156,103 Trading liabilities ― Obligation to return securities received as collateral 20,262 — — — 20,262 Total $ 71,298 $ 37,554 $ 27,511 $ 40,002 $ 176,365 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 $ in millions At June 30, 2017 At December 31, 2016 Securities sold under agreements to repurchase 1 U.S. government and agency securities $ 28,512 $ 56,372 State and municipal securities 157 1,363 Other sovereign government obligations 51,498 42,790 Asset-backed securities 1,549 1,918 Corporate and other debt 5,083 9,086 Corporate equities 26,599 23,152 Other 1,255 880 Total securities sold under agreements to repurchase $ 114,653 $ 135,561 Securities loaned 1 Other sovereign government obligations 13,599 4,762 Corporate and other debt 124 73 Corporate equities 16,375 15,693 Other 178 14 Total securities loaned $ 30,276 $ 20,542 Gross amount of secured financing included in the offsetting disclosure $ 144,929 $ 156,103 Trading liabilities ― Obligation to return securities received as collateral Corporate equities 21,472 20,247 Other 9 15 Total Trading liabilities ―O bligation to return securities received as collateral $ 21,481 $ 20,262 Total $ 166,410 $ 176,365 1. Amounts are presented on a gross basis, prior to netting in the consolidated balance sheets . |
Schedule of Trading Assets Pledged | Assets Pledged $ in millions At June 30, 2017 At December 31, 2016 Carrying value of trading assets loaned or pledged 1 $ 42,053 $ 41,358 Carrying value of loans pledged (gross of allowance for loan losses) 1 3,876 — Total $ 45,929 $ 41,358 1. Counterparties do not have the right to sell or repledge the collateral. |
Schedule of Fair Value of Collateral Received with Rights to Sell or Repledge | Fair Value of Collateral Received with Right to Sell or Repledge $ in millions At June 30, 2017 At December 31, 2016 Collateral received with right to sell or repledge $ 556,203 $ 561,239 Collateral that was sold or repledged 429,029 430,911 |
Schedule of Customer Margin Lending and Other | Customer Margin Lending and Other $ in millions At June 30, 2017 At December 31, 2016 Net customer receivables representing margin loans $ 27,744 $ 24,359 |
Schedule of Cash and Securities Deposited with Clearing Organizations or Segregated | Cash and Securities Deposited with Clearing Organizations or Segregated $ in millions At June 30, 2017 At December 31, 2016 Segregated securities 1 $ 20,351 $ 23,756 Other assets―Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 30,171 33,979 Total $ 50,522 $ 57,735 Securities segregated under federal regulations for the Firm’s U.S. broker-dealers 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, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Table of Loans Held for Investment and Held for Sale | Loans Held for Investment and Held for Sale by Loan Type At June 30, 2017 $ in millions Loans Held for Investment Loans Held for Sale Total Loans Corporate loans $ 26,831 $ 9,394 $ 36,225 Consumer loans 26,354 — 26,354 Residential real estate loans 25,646 60 25,706 Wholesale real estate loans 8,482 1,178 9,660 Total loans, gross 87,313 10,632 97,945 Allowance for loan losses (306) — (306) Total loans, net $ 87,007 $ 10,632 $ 97,639 At December 31, 2016 $ in millions Loans Held for Investment Loans Held for Sale Total Loans Corporate loans $ 25,025 $ 10,710 $ 35,735 Consumer loans 24,866 — 24,866 Residential real estate loans 24,385 61 24,446 Wholesale real estate loans 7,702 1,773 9,475 Total loans, gross 81,978 12,544 94,522 Allowance for loan losses (274) — (274) Total loans, net $ 81,704 $ 12,544 $ 94,248 Loans to Non-U.S. Borrowers $ in millions At June 30, 2017 At December 31, 2016 Loans, net of allowance $ 8,725 $ 9,388 Loans by Interest Rate Type $ in millions At June 30, 2017 At December 31, 2016 Fixed $ 12,696 $ 11,895 Floating or adjustable $ 84,943 $ 82,353 |
Table of Loans Held for Investment Before Allowance by Credit Quality | Loans Held for Investment before Allowance by Credit Quality At June 30, 2017 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 25,321 $ 26,351 $ 25,598 $ 7,975 $ 85,245 Special mention 416 3 — 192 611 Substandard 1,025 — 48 315 1,388 Doubtful 69 — — — 69 Loss — — — — — Total $ 26,831 $ 26,354 $ 25,646 $ 8,482 $ 87,313 At December 31, 2016 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 23,409 $ 24,853 $ 24,345 $ 7,294 $ 79,901 Special mention 288 13 — 218 519 Substandard 1,259 — 40 190 1,489 Doubtful 69 — — — 69 Loss — — — — — Total $ 25,025 $ 24,866 $ 24,385 $ 7,702 $ 81,978 |
Table of Impaired Loans Before Allowance by Product Type | Impaired Loans Before Allowance by Product Type At June 30, 2017 $ in millions Corporate Residential Real Estate Total With allowance $ 141 $ — $ 141 Without allowance 1 122 35 157 Unpaid principal balance 2 273 36 309 At December 31, 2016 $ in millions Corporate Residential Real Estate Total With allowance $ 104 $ — $ 104 Without allowance 1 206 35 241 Unpaid principal balance 2 316 38 354 At June 30, 2017 and December 31, 2016 , no allowance was recorded 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 with out allowance due to various factors, including charge-offs and net deferred loan fees or costs. |
Table of Select Loan Information by Region | Select Loan Information by Region At June 30, 2017 $ in millions Americas EMEA Asia-Pacific Total Impaired loans $ 279 $ 9 $ 10 $ 298 Allowance for loan losses 274 30 2 306 At December 31, 2016 $ in millions Americas EMEA Asia-Pacific Total Impaired loans $ 320 $ 9 $ 16 $ 345 Allowance for loan losses 245 28 1 274 EMEA—Europe, Middle East and Africa |
Table of Allowance for Credit Losses on Lending Activities | Loans — Current Y ear Period Allowance for Loan Losses Rollforward Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2016 $ 195 $ 4 $ 20 $ 55 $ 274 Recoveries 1 — — — 1 Provision for (release of) loan losses 1 14 — 1 14 29 Other 1 — — 1 2 June 30, 2017 $ 211 $ 4 $ 21 $ 70 $ 306 Loan Loss Allowance by Impairment Methodology At June 30, 2017 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 142 $ 4 $ 21 $ 70 $ 237 Specific 69 — — — 69 Total $ 211 $ 4 $ 21 $ 70 $ 306 Loans by Impairment Methodology 2 At June 30, 2017 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 26,568 $ 26,354 $ 25,611 $ 8,482 $ 87,015 Specific 263 — 35 — 298 Total $ 26,831 $ 26,354 $ 25,646 $ 8,482 $ 87,313 The Firm recorded provisions of $ 7 million for loan losses for the current quarter. Loan balances are gross of the allowance for loan losses. Loans — Prior Year Period Allowance for Loan Losses Rollforward Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Provision for (release of) loan losses 1 116 (1) 1 12 128 Other 2 (30) — — — (30) June 30, 2016 $ 252 $ 4 $ 18 $ 49 $ 323 Loan Loss Allowance by Impairment Methodology At June 30, 2016 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 147 $ 4 $ 18 $ 49 $ 218 Specific 105 — — — 105 Total $ 252 $ 4 $ 18 $ 49 $ 323 Loans by Impairment Methodology 3 At June 30, 2016 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 23,604 $ 23,337 $ 22,638 $ 7,415 $ 76,994 Specific 582 — 30 — 612 June 30, 2016 $ 24,186 $ 23,337 $ 22,668 $ 7,415 $ 77,606 The Firm recorded provisions of $ 16 million for loan losses for the prior year quarter. 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. Commitments — Current Year Period Allowance for Lending Commitments Rollforward Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2016 $ 185 $ 1 $ — $ 4 $ 190 Provision for (release of) lending commitments 1 (3) — — (1) (4) June 30, 2017 $ 182 $ 1 $ — $ 3 $ 186 Lending Commitments Allowance by Impairment Methodology At June 30, 2017 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 179 $ 1 $ — $ 3 $ 183 Specific 3 — — — 3 Total $ 182 $ 1 $ — $ 3 $ 186 Lending Commitments by Impairment Methodology 2 At June 30, 2017 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 62,339 $ 6,005 $ 346 $ 409 $ 69,099 Specific 229 — — — 229 Total $ 62,568 $ 6,005 $ 346 $ 409 $ 69,328 The Firm recorded a release of $ 7 million for commitments for the current quarter. Lending commitments are gross of the allowance for lending commitments. Commitments — Prior Year Period Allowance for Lending Commitments Rollforward Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Provision for lending commitments 1 1 — — 2 3 Other — (1) — — (1) June 30, 2016 $ 181 $ — $ — $ 6 $ 187 Lending Commitments Allowance by Impairment Methodology At June 30, 2016 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 173 $ — $ — $ 6 $ 179 Specific 8 — — — 8 Total $ 181 $ — $ — $ 6 $ 187 Lending Commitments by Impairment Methodology 2 At June 30, 2016 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Inherent $ 63,120 $ 5,264 $ 327 $ 496 $ 69,207 Specific 64 — — — 64 Total $ 63,184 $ 5,264 $ 327 $ 496 $ 69,271 The Firm recorded a release of $ 13 million for commitments for the prior year quarter. Lending commitments are gross of the allowance for lending commitments. |
Table of Troubled Debt Restructurings | Troubled Debt Restructurings $ in millions At June 30, 2017 At December 31, 2016 Loans $ 58 $ 67 Lending commitments 21 14 Allowance for loan losses 8 — |
Table of Employee Loans | Employee Loans $ in millions At June 30, 2017 At December 31, 2016 Balance $ 4,323 $ 4,804 Allowance for loan losses (83) (89) Balance, net $ 4,240 $ 4,715 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures | |
Schedule of Equity Method Investments | Equity Method Investment Balances $ in millions At June 30, 2017 At December 31, 2016 Investments $ 2,760 $ 2,837 Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Income (loss) $ (9) $ (14) $ — $ 1 |
Summarized Financial Data for MUMSS | Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Income from investment in MUMSS $ 23 $ 23 $ 71 $ 57 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Deposits [Abstract] | |
Deposits | Deposits At June 30, At December 31, $ in millions 2017 2016 Savings and demand deposits $ 141,087 $ 154,559 Time deposits 1 3,826 1,304 Total 2 $ 144,913 $ 155,863 Deposits subject to FDIC insurance $ 120,991 $ 127,992 Time deposits that equal or exceed the FDIC insurance limit $ 2 $ 46 |
Maturities of Interest Bearing Deposits | Interest Bearing Deposit Maturities at June 30, 2017 Savings and Time $ in millions Demand Deposits Deposits 1 Demand $ 141,047 $ — 2017 — 2,925 2018 — 672 2019 — 105 2021 — 8 Thereafter — 116 FDIC—Federal Deposit Insurance Corporation Certain time deposit accounts are carried at fair value under the fair value option (see Note 3). Deposits were primarily held in the U.S. |
Long-Term Borrowings and Othe36
Long-Term Borrowings and Other Secured Financings (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Borrowings and Other Secured Financings | |
Schedule of Long-term Borrowings by Type and Rates | $ in millions At June 30, 2017 At December 31, 2016 Senior $ 173,761 $ 154,472 Subordinated 10,351 10,303 Total $ 184,112 $ 164,775 Weighted average stated maturity, in years 6.5 5.9 |
Schedule of Other Secured Financings | Other Secured Financings by Original Maturity and Type $ in millions At June 30, 2017 At December 31, 2016 Secured Financings Original maturities: Greater than one year $ 11,005 $ 9,404 One year or less 4,996 1,429 Failed sales 1 641 285 Total $ 16,642 $ 11,118 For more information o n failed sales, see Note 12. |
Commitments, Guarantees and C37
Commitments, Guarantees and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments, Guarantees and Contingencies [Abstract] | |
Commitments by Years to Maturity | Years to Maturity at June 30, 2017 Less $ in millions than 1 1-3 3-5 Over 5 Total Lending: Corporate 1 $ 13,478 $ 28,417 $ 45,187 $ 3,806 $ 90,888 Consumer 5,998 4 — 4 6,006 Residential real estate 35 25 84 238 382 Wholesale real estate 232 266 8 67 573 Forward-starting secured financing receivables 2 70,023 — — — 70,023 Underwriting 1,024 — — — 1,024 Investment activities 569 197 22 259 1,047 Letters of credit and other financial guarantees 156 1 1 41 199 Total $ 91,515 $ 28,910 $ 45,302 $ 4,415 $ 170,142 1. Due to the nature of the Firm’s obligations under the commitments, these amounts include certain commitments participated to third parties of $ 6.2 billion . 2. Represents forward-starting securities purchased under agreements to resell and securities borrowed agreements , of which $ 59.8 billion settled within three business days. |
Obligations under Guarantee Arrangements | Obligations under Guarantee Arrangements at June 30, 2017 Maximum Potential Payout/Notional Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Credit derivatives $ 133,654 $ 92,988 $ 96,431 $ 27,743 $ 350,816 Other credit contracts 27 — 13 129 169 Non-credit derivatives 1,560,514 918,800 331,073 572,502 3,382,889 Standby letters of credit and other financial guarantees issued 1 779 856 1,147 5,153 7,935 Market value guarantees 39 65 70 — 174 Liquidity facilities 3,229 — — — 3,229 Whole loan sales guarantees — — 2 23,278 23,280 Securitization representations and warranties — — — 57,547 57,547 General partner guarantees 34 44 313 13 404 Carrying Amount (Asset)/ Liability Collateral/ Recourse $ in millions Credit derivatives 2 $ (1,730) $ — Other credit contracts 4 — Non-credit derivatives 2 45,076 — Standby letters of credit and other financial guarantees issued 1 (186) 6,560 Market value guarantees 1 4 Liquidity facilities (5) 5,503 Whole loan sales guarantees 8 — Securitization representations and warranties 90 — General partner guarantees 44 — 1. These amounts include certain issued standby letters of credit participated to third parties , totaling $ 0.7 billion of notional and collateral/recourse, due to the nature of the Firm’s obligations under these arrangements . 2. 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. |
Variable Interest Entities an38
Variable Interest Entities and Securitization Activities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Securitization Activities and Variable Interest Entities [Abstract] | |
Consolidated VIEs | Assets and Liabilities by Type of Activity At June 30, 2017 At December 31, 2016 $ in millions VIE Assets VIE Liabilities VIE Assets VIE Liabilities Credit-linked notes $ 200 $ — $ 501 $ — Other structured financings 426 5 602 10 Asset-backed securitizations 1 34 22 397 283 Other 2 1,164 258 910 25 Total $ 1,824 $ 285 $ 2,410 $ 318 Asset-backed securitizations include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets. The value of assets is determined based on the fair value of the liabilities 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, $ in millions 2017 2016 Assets Cash and due from banks $ 87 $ 74 Trading assets at fair value 785 1,295 Customer and other receivables 12 13 Goodwill 18 18 Intangible assets 166 177 Other assets 756 833 Total $ 1,824 $ 2,410 Liabilities Other secured financings at fair value $ 249 $ 289 Other liabilities and accrued expenses 36 29 Total $ 285 $ 318 Noncontrolling Interests and Additional Maximum Exposure to Losses Related to Consolidated VIEs At June 30, At December 31, $ in millions 2017 2016 Noncontrolling interests $ 206 $ 228 Maximum exposure to losses 1 — 78 Primarily related to certain derivatives, commitments, guarantees and other forms of involvement not recognized in the consolidated financial statements . |
Non-Consolidated VIEs | Non-consolidated VIE Assets, Maximum and Carrying Value of Exposure to Loss At June 30, 2017 $ in millions MABS CDO MTOB OSF Other VIE assets (unpaid principal balance) $ 78,818 $ 8,598 $ 5,337 $ 3,526 $ 34,823 Maximum exposure to loss Debt and equity interests $ 8,482 $ 1,703 $ 52 $ 1,503 $ 5,528 Derivative and other contracts — — 3,229 — 25 Commitments, guarantees and other 805 1,468 — 174 337 Total $ 9,287 $ 3,171 $ 3,281 $ 1,677 $ 5,890 Carrying value of exposure to loss—Assets Debt and equity interests $ 8,482 $ 1,703 $ 52 $ 1,098 $ 5,528 Derivative and other contracts — — 5 — 52 Total $ 8,482 $ 1,703 $ 57 $ 1,098 $ 5,580 At December 31, 2016 $ in millions MABS CDO MTOB OSF Other VIE assets (unpaid principal balance) $ 101,916 $ 11,341 $ 4,857 $ 4,293 $ 39,077 Maximum exposure to loss Debt and equity interests $ 11,243 $ 1,245 $ 50 $ 1,570 $ 4,877 Derivative and other contracts — — 2,812 — 45 Commitments, guarantees and other 684 99 — 187 228 Total $ 11,927 $ 1,344 $ 2,862 $ 1,757 $ 5,150 Carrying value of exposure to loss—Assets Debt and equity interests $ 11,243 $ 1,245 $ 49 $ 1,183 $ 4,877 Derivative and other contracts — — 5 — 18 Total $ 11,243 $ 1,245 $ 54 $ 1,183 $ 4,895 MABS— Mortgage - and asset - back ed securitizations CDO— Collateralized debt obligations , including collateralized loan obligations MTOB— Municipal tender option bonds OSF— Other structured financing s Non-consolidated VIE Mortgage- and Asset-Backed Securitization Assets At June 30, 2017 At December 31, 2016 Unpaid Principal Balance Debt and Equity Interests Unpaid Principal Balance Debt and Equity Interests $ in millions Residential mortgages $ 9,106 $ 524 $ 4,775 $ 458 Commercial mortgages 49,504 2,614 54,021 2,656 U.S. agency collateralized mortgage obligations 13,243 2,745 14,796 2,758 Other consumer or commercial loans 6,965 2,599 28,324 5,371 Total $ 78,818 $ 8,482 $ 101,916 $ 11,243 |
Transfer of Assets with Continuing Involvement | Transfers of Assets with Continuing Involvement At June 30, 2017 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other 1 $ in millions SPE assets (unpaid principal balance) 2 $ 17,692 $ 53,764 $ 12,337 $ 11,831 Retained interests Investment grade 3 $ — $ 140 $ 710 $ 5 Non-investment grade (fair value) 3 86 — 643 Total $ 3 $ 226 $ 710 $ 648 Interests purchased in the secondary market (fair value) Investment grade $ 4 $ 92 $ 66 $ — Non-investment grade 17 71 — — Total $ 21 $ 163 $ 66 $ — Derivative assets (fair value) $ 1 $ — $ — $ 32 Derivative liabilities (fair value) — — — 307 At December 31, 2016 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other 1 $ in millions SPE assets (unpaid principal balance) 2 $ 19,381 $ 43,104 $ 11,092 $ 11,613 Retained interests (fair value) Investment grade $ — $ 22 $ 375 $ — Non-investment grade 4 79 — 826 Total $ 4 $ 101 $ 375 $ 826 Interests purchased in the secondary market (fair value) Investment grade $ — $ 30 $ 26 $ — Non-investment grade 23 75 — — Total $ 23 $ 105 $ 26 $ — Derivative assets (fair value) $ — $ 261 $ — $ 89 Derivative liabilities (fair value) — — — 459 Amounts include CLO transactions managed by unrelated third parties. Amounts include assets transferred by unrelated transferors . Amounts include $ 734 million of investment grade retained interests at fair value. At June 30, 2017 $ in millions Level 2 Level 3 Total Retained interests (fair value) Investment grade $ 729 $ 5 $ 734 Non-investment grade 4 728 732 Total $ 733 $ 733 $ 1,466 Interests purchased in the secondary market (fair value) Investment grade $ 155 $ 7 $ 162 Non-investment grade 75 13 88 Total $ 230 $ 20 $ 250 Derivative assets (fair value) $ 33 $ — $ 33 Derivative liabilities (fair value) 131 176 307 At December 31, 2016 $ in millions Level 2 Level 3 Total Retained interests (fair value) Investment grade $ 385 $ 12 $ 397 Non-investment grade 14 895 909 Total $ 399 $ 907 $ 1,306 Interests purchased in the secondary market (fair value) Investment grade $ 56 $ — $ 56 Non-investment grade 84 14 98 Total $ 140 $ 14 $ 154 Derivative assets (fair value) $ 348 $ 2 $ 350 Derivative liabilities (fair value) 98 361 459 |
Schedule of Proceeds from Securitization Transactions | Proceeds from New Securitization Transactions and Sales of Loans Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 New transactions 1 $ 4,750 $ 4,163 $ 10,747 $ 6,876 Retained interests 529 502 959 1,133 Sales of corporate loans to CLO SPEs 1,2 239 — 418 31 Net gains on new transactions and sale s of corporate loans to CLO entities at the time of the sale were not material for all periods presented. Sponsored by non-affiliates . |
Carrying and Fair Value of Assets Sold and Retained Interest Exposure | Carrying and Fair Value of Assets Sold and Retained Interest Exposure $ in millions At June 30, 2017 At December 31, 2016 Carrying value of assets derecognized at the time of sale and gross cash proceeds $ 14,817 $ 11,209 Fair value Assets sold 14,710 11,301 Derivative assets recognized in the consolidated balance sheets 33 128 Derivative liabilities recognized in the consolidated balance sheets 140 36 |
Carrying Value of Assets and Liabilities Related to Failed Sales | Carrying Value of Assets and Liabilities Related to Failed Sales At June 30, 2017 At December 31, 2016 $ in millions Assets Liabilities Assets Liabilities Failed sales $ 641 $ 641 $ 285 $ 285 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | Regulatory Capital At June 30, 2017 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 61,604 16.6% 7.3% Tier 1 capital 70,380 19.0% 8.8% Total capital 81,025 21.9% 10.8% Tier 1 leverage 2 — 8.5% 4.0% Total RWAs $ 370,679 N/A N/A Adjusted average assets 3 828,365 N/A N/A At December 31, 2016 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 60,398 16.9% 5.9% Tier 1 capital 68,097 19.0% 7.4% Total capital 78,642 22.0% 9.4% Tier 1 leverage 2 — 8.4% 4.0% Total RWAs $ 358,141 N/A N/A Adjusted average assets 3 811,402 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 the 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 ended June 30, 2017 and December 31, 2016 , respectively , adjusted for disallowed goodwill, tr ansitional intangible assets, certain deferred tax assets, certain investments in the capital instruments of unconsolidated financial institutions and other adjustments. |
MSBNA | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | MSBNA’s Regulatory Capital At June 30, 2017 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 14,526 18.5% 6.5% Tier 1 capital 14,526 18.5% 8.0% Total capital 14,807 18.9% 10.0% Tier 1 leverage 14,526 12.0% 5.0% At December 31, 2016 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 13,398 16.9% 6.5% Tier 1 capital 13,398 16.9% 8.0% Total capital 14,858 18.7% 10.0% Tier 1 leverage 13,398 10.5% 5.0% 1. Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. |
MSPBNA | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | MSPBNA’s Regulatory Capital At June 30, 2017 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 5,898 24.8% 6.5% Tier 1 capital 5,898 24.8% 8.0% Total capital 5,938 25.0% 10.0% Tier 1 leverage 5,898 10.3% 5.0% At December 31, 2016 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 5,589 26.1% 6.5% Tier 1 capital 5,589 26.1% 8.0% Total capital 5,626 26.3% 10.0% Tier 1 leverage 5,589 10.6% 5.0% 1. Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. |
MS&Co. | |
Regulatory Requirements | |
Schedule of Broker-Dealer Regulatory Capital Requirements | U.S. Broker-Dealer Regulatory Capital Requirements MS&Co. Regulatory Capital $ in millions At June 30, 2017 At December 31, 2016 Net capital $ 10,388 $ 10,311 Excess net capital 8,312 8,034 $ in millions At June 30, 2017 At December 31, 2016 Required tentative net capital 1 $ 1,000 $ 1,000 Required net capital 500 500 MS&Co. is required to notify the SEC in the event that its tentative net capital is less than $ 5 billion . |
MSSB LLC | |
Regulatory Requirements | |
Schedule of Broker-Dealer Regulatory Capital Requirements | MSSB LLC Regulatory Capital $ in millions At June 30, 2017 At December 31, 2016 Net capital $ 2,288 $ 3,946 Excess net capital 2,131 3,797 |
Total Equity (Tables)
Total Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Total Equity | |
Preferred Stock | Preferred Stock Outstanding $ in millions, except per share data Shares Outstanding Carrying Value At Liquidation At At June 30, Preference June 30, December 31, 2017 per Share 2017 2016 Series 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 K 40,000 25,000 1,000 — Total $ 8,520 $ 7,520 1. Series C is composed 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 $ 503 million, which were converted to common shares of approximately $ 705 million. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) $ in millions Foreign Currency Translation Adjustments AFS Securities Pensions, Postretirement and Other DVA Total March 31, 2017 $ (879) $ (504) $ (474) $ (593) $ (2,450) OCI during the period 1 23 108 4 (173) (38) June 30, 2017 $ (856) $ (396) $ (470) $ (766) $ (2,488) March 31, 2016 $ (831) $ 76 $ (373) $ (110) $ (1,238) OCI during the period 1 52 143 (5) 143 333 June 30, 2016 $ (779) $ 219 $ (378) $ 33 $ (905) December 31, 2016 $ (986) $ (588) $ (474) $ (595) $ (2,643) OCI during the period 1 130 192 4 (171) 155 June 30, 2017 $ (856) $ (396) $ (470) $ (766) $ (2,488) December 31, 2015 $ (963) $ (319) $ (374) $ — $ (1,656) Cumulative adjustment for accounting change related to DVA 2 — — — (312) (312) OCI during the period 1 184 538 (4) 345 1,063 June 30, 2016 $ (779) $ 219 $ (378) $ 33 $ (905) Amounts net of tax and noncontrolling interests. 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 unrealized DVA amount, net of noncontrolling interest s and tax, related to outstanding liabilities under the fair value option election from Retained earnings into AOCI. See Note 2 to the consolidated financial statements in the 2016 Form 10-K for further informa tion. |
Period Changes in OCI Components | Period Changes in OCI Components Three Months Ended June 30, 2017 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 1 $ 11 $ 12 $ (11) $ 23 Reclassified to earnings — — — — — Net OCI $ 1 $ 11 $ 12 $ (11) $ 23 Change in net unrealized gains (losses) on AFS securities OCI activity $ 185 $ (68) $ 117 $ — $ 117 Reclassified to earnings 1 (14) 5 (9) — (9) Net OCI $ 171 $ (63) $ 108 $ — $ 108 Pension, postretirement and other OCI activity $ 3 $ — $ 3 $ — $ 3 Reclassified to earnings 1 1 — 1 — 1 Net OCI 4 — 4 — 4 Change in net DVA OCI activity $ (285) $ 99 $ (186) $ (10) $ (176) Reclassified to earnings 1 4 (1) 3 — 3 Net OCI $ (281) $ 98 $ (183) $ (10) $ (173) Three Months Ended June 30, 2016 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 72 $ 59 $ 131 $ 79 $ 52 Reclassified to earnings — — — — — Net OCI $ 72 $ 59 $ 131 $ 79 $ 52 Change in net unrealized gains (losses) on AFS securities OCI activity $ 298 $ (110) $ 188 $ — $ 188 Reclassified to earnings 1 (70) 25 (45) — (45) Net OCI $ 228 $ (85) $ 143 $ — $ 143 Pension, postretirement and other OCI activity $ (5) $ — $ (5) $ — $ (5) Reclassified to earnings 1 (1) 1 — — — Net OCI $ (6) $ 1 $ (5) $ — $ (5) Change in net DVA OCI activity $ 225 $ (80) $ 145 $ 2 $ 143 Reclassified to earnings 1 — — — — — Net OCI $ 225 $ (80) $ 145 $ 2 $ 143 Six Months Ended June 30, 2017 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 44 $ 118 $ 162 $ 32 $ 130 Reclassified to earnings — — — — — Net OCI $ 44 $ 118 $ 162 $ 32 $ 130 Change in net unrealized gains (losses) on AFS securities OCI activity $ 322 $ (120) $ 202 $ — $ 202 Reclassified to earnings 1 (16) 6 (10) — (10) Net OCI $ 306 $ (114) $ 192 $ — $ 192 Pension, postretirement and other OCI activity $ 3 $ — $ 3 $ — $ 3 Reclassified to earnings 1 1 — 1 — 1 Net OCI 4 — 4 — 4 Change in net DVA OCI activity $ (278) $ 98 $ (180) $ (3) $ (177) Reclassified to earnings 1 8 (2) 6 — 6 Net OCI $ (270) $ 96 $ (174) $ (3) $ (171) Six Months Ended June 30, 2016 2 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 143 $ 174 $ 317 $ 133 $ 184 Reclassified to earnings — — — — — Net OCI $ 143 $ 174 $ 317 $ 133 $ 184 Change in net unrealized gains (losses) on AFS securities OCI activity $ 934 $ (344) $ 590 $ — $ 590 Reclassified to earnings 1 (82) 30 (52) — (52) Net OCI $ 852 $ (314) $ 538 $ — $ 538 Pension, postretirement and other OCI activity $ (6) $ 3 $ (3) $ — $ (3) Reclassified to earnings 1 (2) 1 (1) — (1) Net OCI $ (8) $ 4 $ (4) $ — $ (4) Change in net DVA OCI activity $ 589 $ (215) $ 374 $ 3 $ 371 Reclassified to earnings 1 (41) 15 (26) — (26) Net OCI $ 548 $ (200) $ 348 $ 3 $ 345 Amounts reclassified to earnings related to: realized gains and losses from sales of AFS securities are classified within Other revenues in the consolidated income statements; Pension, postretirement and other are classified within Compensation and benefits expenses in the consolidated income statements; and realization of DVA are classified within Trading revenues in the consolidated income statements . Exclusive of 2016 cumulative adjustment for accounting change related to DVA. |
Noncontrolling Interest | Noncontrolling Interests $ in millions At June 30, 2017 At December 31 2016 Noncontrolling interests $ 1,141 $ 1,127 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted EPS | Three Months Ended Six Months Ended June 30, June 30, in millions, except for per share data 2017 2016 2017 2016 Basic EPS Income from continuing operations $ 1,796 $ 1,650 $ 3,789 $ 2,810 Income (loss) from discontinued operations (5) (4) (27) (7) Net income 1,791 1,646 3,762 2,803 Net income applicable to noncontrolling interests 34 64 75 87 Net income applicable to Morgan Stanley 1,757 1,582 3,687 2,716 Less: Preferred stock dividends and other (170) (157) (260) (235) Earnings applicable to Morgan Stanley common shareholders $ 1,587 $ 1,425 $ 3,427 $ 2,481 Weighted average common shares outstanding 1,791 1,866 1,796 1,875 Earnings per basic common share Income from continuing operations $ 0.89 $ 0.77 $ 1.92 $ 1.33 Income (loss) from discontinued operations — (0.01) (0.01) (0.01) Earnings per basic common share $ 0.89 $ 0.76 $ 1.91 $ 1.32 Diluted EPS Earnings applicable to Morgan Stanley common shareholders $ 1,587 $ 1,425 $ 3,427 $ 2,481 Weighted average common shares outstanding 1,791 1,866 1,796 1,875 Effect of dilutive securities: Stock options and RSUs 1 39 33 40 32 Weighted average common shares outstanding and common stock equivalents 1,830 1,899 1,836 1,907 Earnings per diluted common share Income from continuing operations $ 0.87 $ 0.75 $ 1.88 $ 1.30 Income (loss) from discontinued operations — — (0.01) — Earnings per diluted common share $ 0.87 $ 0.75 $ 1.87 $ 1.30 Weighted average antidilutive RSUs and stock options (excluded from the computation of diluted EPS) 1 — 14 — 15 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. |
Interest Income and Interest 42
Interest Income and Interest Expense (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Interest Income and Interest Expense | |
Schedule of Details of Interest Income and Interest Expense | Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Interest income 1 Investment securities $ 304 $ 237 $ 630 $ 473 Loans 798 680 1,546 1,327 Interest bearing deposits with banks 67 52 122 105 Securities purchased under agreements to resell and Securities borrowed 2 29 (120) 10 (198) Trading assets, net of Trading liabilities 3 491 $ 526 955 1,109 Customer receivables and Other 4 417 292 808 598 Total interest income $ 2,106 $ 1,667 $ 4,071 $ 3,414 Interest expense 1 Deposits $ 14 $ 15 $ 25 $ 37 Short-term and Long-term borrowings 1,067 851 2,088 1,818 Securities sold under agreements to repurchase and Securities loaned 5 339 259 587 513 Customer payables and Other 6 (65) (371) (151) (766) Total interest expense $ 1,355 $ 754 $ 2,549 $ 1,602 Net interest $ 751 $ 913 $ 1,522 $ 1,812 1. Interest income and Interest expense are recorded within the consolidated income statements 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. Includes fees paid on Securities borrowed . 3. Interest expense on Trading liabilities is reported as a reduction to Interest income on Trading assets. 4. Inclu des interest from customer receivables and cash deposited with clearing organizations or segregated under federal and other regulations or requirements . 5. Include s fees received on Securities loaned. 6. Includes fees received from prime brokerage customers for stock loan transactions incurred to cover customers’ short positions. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Employee Benefit Plans | |
Components of Net Periodic Benefit Expense (Income) | Components of the Net Periodic Benefit Expense (Income) for Pension and Other Postretirement Plans Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Service cost, benefits earned during the period $ 4 $ 4 $ 8 $ 8 Interest cost on projected benefit obligation 38 39 75 77 Expected return on plan assets (29) (30) (58) (60) Net amortization of prior service credit (4) (5) (8) (9) Net amortization of actuarial loss 4 3 8 6 Net periodic benefit expense (income) $ 13 $ 11 $ 25 $ 22 |
Segment and Geographic Inform44
Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Selected Financial Information by Business Segment | Selected Financial Information by Business Segment Three Months Ended June 30, 2017 $ in millions IS 1 WM IM 2 I/E Total Total non-interest revenues 3 $ 5,020 $ 3,142 $ 665 $ (75) $ 8,752 Interest income 1,243 1,114 1 (252) 2,106 Interest expense 1,501 105 1 (252) 1,355 Net interest (258) 1,009 — — 751 Net revenues $ 4,762 $ 4,151 $ 665 $ (75) $ 9,503 Income from continuing operations before income taxes $ 1,443 $ 1,057 $ 142 $ — $ 2,642 Provision for income taxes 413 392 41 — 846 Income from continuing operations 1,030 665 101 — 1,796 Income (loss) from discontinued operations, net of income taxes (5) — — — (5) Net income 1,025 665 101 — 1,791 Net income applicable to noncontrolling interests 33 — 1 — 34 Net income applicable to Morgan Stanley $ 992 $ 665 $ 100 $ — $ 1,757 Three Months Ended June 30, 2016 $ in millions IS 4 WM 4 IM 2 I/E Total Total non-interest revenues 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 Six Months Ended June 30, 2017 $ in millions IS 1 WM IM 2 I/E Total Total non-interest revenues 3 $ 10,399 $ 6,206 $ 1,273 $ (152) $ 17,726 Interest income 2,367 2,193 2 (491) 4,071 Interest expense 2,852 190 1 (494) 2,549 Net interest (485) 2,003 1 3 1,522 Net revenues $ 9,914 $ 8,209 $ 1,274 $ (149) $ 19,248 Income from continuing operations before income taxes $ 3,173 $ 2,030 $ 245 $ 2 $ 5,450 Provision for income taxes 872 718 71 — 1,661 Income from continuing operations 2,301 1,312 174 2 3,789 Income (loss) from discontinued operations, net of income taxes (27) — — — (27) Net income 2,274 1,312 174 2 3,762 Net income applicable to noncontrolling interests 68 — 7 — 75 Net income applicable to Morgan Stanley $ 2,206 $ 1,312 $ 167 $ 2 $ 3,687 Six Months Ended June 30, 2016 $ in millions IS 4 WM 4 IM 2 I/E Total Total non-interest revenues 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 (loss) applicable to noncontrolling interests 100 — (13) — 87 Net income applicable to Morgan Stanley $ 1,579 $ 1,009 $ 128 $ — $ 2,716 IS—Institutional Securities WM—Wealth Management IM—Investment Management I/E—Intersegment eliminations In the current quarter, the Firm recorded a provision of $ 86 million for potential additional value - added tax , interest and penalties in relation to certain intercompany service activities provided to our U.K. Group . The Firm waives 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 res ulted in a reduction of fees of approximately $ 23 million and $ 12 million for the current quarter and prior year quarter , respectively, and $ 45 million and $ 35 million for the current year period and prior year period, respectively. In certain management f ee 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 returns or other performance targets. In such ar rangements, 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 Firm’s portion of net unrealized cumulative per formance-based fee s (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 $ 469 million and $ 397 million at June 30, 2017 and December 31, 201 6 , respectively. See Note 11 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received. Effective July 1, 2016, the Institutional Securities and Wealth Management business segments entered into an agreement, whereby Institutional Securities assumed management of Wealth Management’s fixed income client-driven trading activities and employees. Institutional Securities now pays fees to Wealth Managem ent based on distribution activity (collectively, the “Fixed Income Integration”). Prior periods have not been recast for this new intersegment agreement due to immateriality. |
Total Assets by Business Segment | Total Assets by Business Segment At June 30, At December 31, $ in millions 2017 2016 Institutional Securities $ 665,603 $ 629,149 Wealth Management 170,735 181,135 Investment Management 4,678 4,665 Total 1 $ 841,016 $ 814,949 C orporate assets have been fully allocated to the business segments. |
Net Revenues by Region | Net Revenues by Region Three Months Ended Six Months Ended June 30, June 30, $ in millions 2017 2016 2017 2016 Americas $ 6,746 $ 6,538 $ 13,834 $ 12,290 EMEA 1,606 1,312 3,095 2,441 Asia-Pacific 1,151 1,059 2,319 1,970 Net revenues $ 9,503 $ 8,909 $ 19,248 $ 16,701 |
Significant Accounting Polici45
Significant Accounting Policies (Details) - Improvements to Employee Share-Based Payment Accounting $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accounting Standards Adopted | |
Excess tax benefits recognized | $ 112 |
Cumulative catch-up adjustment to Retained Earnings | 30 |
Increase to additional paid-in capital | 45 |
Increase to deferred tax asset | $ 15 |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Assets at Fair Value | ||
Total trading assets | $ 290,802 | $ 262,154 |
Investment securities - AFS securities | 50,488 | 63,170 |
Securities purchased under agreement to resell | 102 | 302 |
Liabilities at Fair Value | ||
Deposits | 130 | 63 |
Short-term borrowings | 582 | 406 |
Obligation to return securities received as collateral | 21,481 | 20,262 |
Total trading liabilities | 134,810 | 128,194 |
Securities sold under agreement to repurchase | 738 | 729 |
Other secured financings | 5,731 | 5,041 |
Long-term borrowings | 43,226 | 38,736 |
Recurring | ||
Assets at Fair Value | ||
U.S. government and agency securities | 55,453 | 48,045 |
Other sovereign government obligations | 25,035 | 19,508 |
Corporate and other debt | 33,239 | 26,703 |
Corporate equities | 128,146 | 118,635 |
Securities received as collateral | 14,408 | 13,737 |
Derivative and other contracts | 30,140 | 31,206 |
Netting | (349,344) | (411,246) |
Counterparty and cash collateral netting | (46,652) | (51,381) |
Investments | 1,494 | 1,392 |
Physical commodities | 134 | 112 |
Total trading assets | 288,049 | 259,338 |
Investment securities - AFS securities | 50,488 | 63,170 |
Securities purchased under agreement to resell | 102 | 302 |
Intangible assets | 3 | 3 |
Total assets | 338,642 | 322,813 |
Liabilities at Fair Value | ||
Deposits | 130 | 63 |
Short-term borrowings | 582 | 406 |
U.S. government and agency securities | 16,665 | 11,697 |
Other sovereign government obligations | 26,529 | 23,088 |
Corporate and other debt | 6,984 | 6,157 |
Corporate equities | 36,446 | 37,674 |
Obligation to return securities received as collateral | 21,481 | 20,262 |
Derivative and other contracts | 26,705 | 29,315 |
Netting | (336,080) | (399,668) |
Counterparty and cash collateral netting | (33,388) | (39,803) |
Physical commodities | 1 | |
Total trading liabilities | 134,810 | 128,194 |
Securities sold under agreement to repurchase | 738 | 729 |
Other secured financings | 5,731 | 5,041 |
Long-term borrowings | 43,226 | 38,736 |
Total liabilities | 185,217 | 173,169 |
Recurring | Futures Contracts | Customer and Other Receivables | ||
Additional Fair Value Disclosure | ||
Derivative assets, unsettled fair value | 852 | 784 |
Recurring | Futures Contracts | Customer and Other Payables | ||
Additional Fair Value Disclosure | ||
Derivative liabilities, unsettled fair value | 425 | 174 |
Recurring | Other Sovereign Government Obligations | ||
Transfers Between Level 1 and Level 2 | ||
Derivative liabilities transferred from Level 2 to Level 1 | 1,800 | |
Recurring | U.S. Treasury Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 27,473 | 25,457 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 16,142 | 10,745 |
Recurring | U.S. Agency Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 27,980 | 22,588 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 523 | 952 |
Recurring | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 2,581 | 2,605 |
Recurring | Other Sovereign Government Obligations | ||
Transfers Between Level 1 and Level 2 | ||
Derivative assets transferred from Level 2 to Level 1 | 1,300 | |
Recurring | Residential Mortgage-, Commercial Mortgage- and Asset-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 2,828 | 1,908 |
Recurring | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 15,787 | 11,283 |
Liabilities at Fair Value | ||
Corporate and other debt | 6,666 | 5,606 |
Recurring | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 363 | 665 |
Recurring | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 9,225 | 8,702 |
Recurring | Loans and Lending Commitments | Corporate Loans | ||
Assets at Fair Value | ||
Corporate and other debt | 6,775 | 7,217 |
Recurring | Loans and Lending Commitments | Residential Real Estate Loans | ||
Assets at Fair Value | ||
Corporate and other debt | 662 | 966 |
Recurring | Loans and Lending Commitments | Wholesale Real Estate Loans | ||
Assets at Fair Value | ||
Corporate and other debt | 1,788 | 519 |
Recurring | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 2,455 | 1,540 |
Liabilities at Fair Value | ||
Corporate and other debt | 318 | 551 |
Recurring | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 257,150 | 302,910 |
Liabilities at Fair Value | ||
Derivative and other contracts | 235,374 | 287,576 |
Recurring | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 9,472 | 12,229 |
Liabilities at Fair Value | ||
Derivative and other contracts | 10,405 | 13,425 |
Recurring | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 55,057 | 75,165 |
Liabilities at Fair Value | ||
Derivative and other contracts | 58,165 | 75,583 |
Recurring | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 45,382 | 38,629 |
Liabilities at Fair Value | ||
Derivative and other contracts | 47,675 | 40,514 |
Recurring | Commodity and Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 12,423 | 13,519 |
Liabilities at Fair Value | ||
Derivative and other contracts | 11,166 | 11,885 |
Recurring | Level 1 | ||
Assets at Fair Value | ||
U.S. government and agency securities | 29,621 | 27,579 |
Other sovereign government obligations | 19,553 | 14,005 |
Corporate and other debt | 0 | 0 |
Corporate equities | 127,252 | 117,857 |
Securities received as collateral | 14,402 | 13,717 |
Derivative and other contracts | 197 | 977 |
Netting | (2,976) | (4,378) |
Investments | 305 | 237 |
Physical commodities | 0 | 0 |
Total trading assets | 191,330 | 174,372 |
Investment securities - AFS securities | 22,018 | 29,120 |
Securities purchased under agreement to resell | 0 | 0 |
Intangible assets | 0 | 0 |
Total assets | 213,348 | 203,492 |
Liabilities at Fair Value | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
U.S. government and agency securities | 16,581 | 11,636 |
Other sovereign government obligations | 25,411 | 20,658 |
Corporate and other debt | 0 | 0 |
Corporate equities | 36,338 | 37,611 |
Obligation to return securities received as collateral | 21,471 | 20,236 |
Derivative and other contracts | 156 | 708 |
Netting | (2,976) | (4,378) |
Physical commodities | 0 | |
Total trading liabilities | 99,957 | 90,849 |
Securities sold under agreement to repurchase | 0 | 0 |
Other secured financings | 0 | 0 |
Long-term borrowings | 67 | 47 |
Total liabilities | 100,024 | 90,896 |
Recurring | Level 1 | U.S. Treasury Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 27,473 | 25,457 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 16,142 | 10,745 |
Recurring | Level 1 | U.S. Agency Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 2,148 | 2,122 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 439 | 891 |
Recurring | Level 1 | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | Residential Mortgage-, Commercial Mortgage- and Asset-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | 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 | 623 | 1,131 |
Liabilities at Fair Value | ||
Derivative and other contracts | 551 | 1,244 |
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 | 100 | 231 |
Liabilities at Fair Value | ||
Derivative and other contracts | 35 | 17 |
Recurring | Level 1 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 803 | 1,185 |
Liabilities at Fair Value | ||
Derivative and other contracts | 699 | 1,162 |
Recurring | Level 1 | Commodity and Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,647 | 2,808 |
Liabilities at Fair Value | ||
Derivative and other contracts | 1,847 | 2,663 |
Recurring | Level 2 | ||
Assets at Fair Value | ||
U.S. government and agency securities | 25,832 | 20,392 |
Other sovereign government obligations | 5,382 | 5,497 |
Corporate and other debt | 27,409 | 20,639 |
Corporate equities | 394 | 333 |
Securities received as collateral | 6 | 19 |
Derivative and other contracts | 69,476 | 75,981 |
Netting | (297,356) | (353,543) |
Investments | 243 | 197 |
Physical commodities | 134 | 112 |
Total trading assets | 128,876 | 123,170 |
Investment securities - AFS securities | 28,470 | 34,050 |
Securities purchased under agreement to resell | 102 | 302 |
Intangible assets | 3 | 3 |
Total assets | 157,451 | 157,525 |
Liabilities at Fair Value | ||
Deposits | 51 | 21 |
Short-term borrowings | 582 | 404 |
U.S. government and agency securities | 84 | 61 |
Other sovereign government obligations | 1,118 | 2,430 |
Corporate and other debt | 6,969 | 6,121 |
Corporate equities | 81 | 29 |
Obligation to return securities received as collateral | 9 | 25 |
Derivative and other contracts | 56,087 | 64,569 |
Netting | (297,356) | (353,543) |
Physical commodities | 1 | |
Total trading liabilities | 64,348 | 73,236 |
Securities sold under agreement to repurchase | 590 | 580 |
Other secured financings | 5,487 | 4,607 |
Long-term borrowings | 40,513 | 36,677 |
Total liabilities | 111,571 | 115,525 |
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 | 25,832 | 20,392 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 84 | 61 |
Recurring | Level 2 | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 2,572 | 2,355 |
Recurring | Level 2 | Residential Mortgage-, Commercial Mortgage- and Asset-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 2,564 | 1,691 |
Recurring | Level 2 | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 15,338 | 11,051 |
Liabilities at Fair Value | ||
Corporate and other debt | 6,653 | 5,572 |
Recurring | Level 2 | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 305 | 602 |
Recurring | Level 2 | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 4,361 | 3,580 |
Recurring | Level 2 | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 2,269 | 1,360 |
Liabilities at Fair Value | ||
Corporate and other debt | 316 | 549 |
Recurring | Level 2 | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 254,677 | 300,406 |
Liabilities at Fair Value | ||
Derivative and other contracts | 233,943 | 285,379 |
Recurring | Level 2 | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 9,049 | 11,727 |
Liabilities at Fair Value | ||
Derivative and other contracts | 9,677 | 12,550 |
Recurring | Level 2 | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 54,895 | 74,921 |
Liabilities at Fair Value | ||
Derivative and other contracts | 58,070 | 75,510 |
Recurring | Level 2 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 41,506 | 35,736 |
Liabilities at Fair Value | ||
Derivative and other contracts | 44,996 | 37,828 |
Recurring | Level 2 | Commodity and Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 6,705 | 6,734 |
Liabilities at Fair Value | ||
Derivative and other contracts | 6,757 | 6,845 |
Recurring | Level 3 | ||
Assets at Fair Value | ||
U.S. government and agency securities | 0 | 74 |
Other sovereign government obligations | 100 | 6 |
Corporate and other debt | 5,830 | 6,064 |
Corporate equities | 500 | 445 |
Securities received as collateral | 0 | 1 |
Derivative and other contracts | 7,119 | 5,629 |
Netting | (2,360) | (1,944) |
Investments | 946 | 958 |
Physical commodities | 0 | 0 |
Total trading assets | 14,495 | 13,177 |
Investment securities - AFS securities | 0 | 0 |
Securities purchased under agreement to resell | 0 | 0 |
Intangible assets | 0 | 0 |
Total assets | 14,495 | 13,177 |
Liabilities at Fair Value | ||
Deposits | 79 | 42 |
Short-term borrowings | 0 | 2 |
U.S. government and agency securities | 0 | 0 |
Other sovereign government obligations | 0 | 0 |
Corporate and other debt | 15 | 36 |
Corporate equities | 27 | 34 |
Obligation to return securities received as collateral | 1 | 1 |
Derivative and other contracts | 3,850 | 3,841 |
Netting | (2,360) | (1,944) |
Physical commodities | 0 | |
Total trading liabilities | 3,893 | 3,912 |
Securities sold under agreement to repurchase | 148 | 149 |
Other secured financings | 244 | 434 |
Long-term borrowings | 2,646 | 2,012 |
Total liabilities | 7,010 | 6,551 |
Recurring | Level 3 | U.S. Treasury Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 0 | 0 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 0 | 0 |
Recurring | Level 3 | U.S. Agency Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 0 | 74 |
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 | 9 | 250 |
Recurring | Level 3 | Residential Mortgage-, Commercial Mortgage- and Asset-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 264 | 217 |
Recurring | Level 3 | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 449 | 232 |
Liabilities at Fair Value | ||
Corporate and other debt | 13 | 34 |
Recurring | Level 3 | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 58 | 63 |
Recurring | Level 3 | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 4,864 | 5,122 |
Recurring | Level 3 | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 186 | 180 |
Liabilities at Fair Value | ||
Corporate and other debt | 2 | 2 |
Recurring | Level 3 | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,850 | 1,373 |
Liabilities at Fair Value | ||
Derivative and other contracts | 880 | 953 |
Recurring | Level 3 | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 423 | 502 |
Liabilities at Fair Value | ||
Derivative and other contracts | 728 | 875 |
Recurring | Level 3 | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 62 | 13 |
Liabilities at Fair Value | ||
Derivative and other contracts | 60 | 56 |
Recurring | Level 3 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 3,073 | 1,708 |
Liabilities at Fair Value | ||
Derivative and other contracts | 1,980 | 1,524 |
Recurring | Level 3 | Commodity and Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 4,071 | 3,977 |
Liabilities at Fair Value | ||
Derivative and other contracts | $ 2,562 | $ 2,377 |
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 | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Intangible Assets | ||||
Assets | ||||
Beginning balance | $ 4 | $ 5 | ||
Realized and unrealized gains (losses) | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales and Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Net transfers | (4) | (5) | ||
Ending balance | 0 | 0 | ||
Unrealized gains (losses) | 0 | 0 | ||
Deposits | ||||
Liabilities | ||||
Beginning balance | $ 56 | 23 | $ 42 | 19 |
Realized and unrealized (gains) losses | 0 | 1 | 1 | 2 |
Purchases | 0 | 0 | 0 | 0 |
Sales and Issuances | 23 | 8 | 36 | 13 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 0 | (2) | 0 | (4) |
Ending balance | 79 | 30 | 79 | 30 |
Unrealized gains (losses) | 0 | (1) | (1) | (2) |
Short-term Borrowings | ||||
Liabilities | ||||
Beginning balance | 2 | 1 | ||
Realized and unrealized (gains) losses | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales and Issuances | 0 | 0 | ||
Settlements | (2) | (1) | ||
Net transfers | 0 | 0 | ||
Ending balance | 0 | 0 | 0 | 0 |
Unrealized gains (losses) | 0 | 0 | ||
Securities Sold Under Agreements to Repurchase | ||||
Liabilities | ||||
Realized and unrealized (gains) losses | 0 | (1) | (1) | (1) |
Purchases | 0 | 0 | 0 | 0 |
Sales and Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 0 | 0 | 0 | 0 |
Unrealized gains (losses) | 0 | 1 | 1 | 1 |
Other Secured Financings | ||||
Liabilities | ||||
Realized and unrealized (gains) losses | 4 | 14 | 23 | 32 |
Purchases | 0 | 0 | 0 | 0 |
Sales and Issuances | 38 | 23 | 52 | 69 |
Settlements | (1) | (22) | (221) | (43) |
Net transfers | 0 | (28) | (44) | (78) |
Unrealized gains (losses) | (4) | (14) | (16) | (32) |
Long-term Borrowings | ||||
Liabilities | ||||
Realized and unrealized (gains) losses | 45 | (21) | 104 | 12 |
Purchases | 0 | 0 | 0 | 0 |
Sales and Issuances | 694 | 164 | 981 | 276 |
Settlements | (145) | (131) | (286) | (167) |
Net transfers | (40) | 119 | (165) | (179) |
Unrealized gains (losses) | (49) | 26 | (95) | (6) |
Trading Assets | U.S. Agency Securities | ||||
Assets | ||||
Beginning balance | 42 | 8 | 74 | 0 |
Realized and unrealized gains (losses) | 0 | 0 | (1) | 1 |
Purchases | 0 | 0 | 0 | 0 |
Sales and Issuances | 0 | (18) | (240) | (19) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | (42) | 30 | 167 | 38 |
Ending balance | 0 | 20 | 0 | 20 |
Unrealized gains (losses) | 0 | 0 | 0 | 1 |
Trading Assets | Other Sovereign Government Obligations | ||||
Assets | ||||
Beginning balance | 65 | 8 | 6 | 4 |
Realized and unrealized gains (losses) | 0 | 0 | 0 | 0 |
Purchases | 87 | 0 | 98 | 0 |
Sales and Issuances | (52) | (3) | (4) | (5) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 0 | (3) | 0 | 3 |
Ending balance | 100 | 2 | 100 | 2 |
Unrealized gains (losses) | 0 | 0 | 0 | 1 |
Trading Assets | Corporate and Other Debt | ||||
Assets | ||||
Beginning balance | 5,467 | 7,644 | 6,064 | 7,538 |
Realized and unrealized gains (losses) | 99 | (10) | 167 | (81) |
Purchases | 1,483 | 503 | 1,967 | 1,268 |
Sales and Issuances | (805) | (803) | (1,387) | (1,320) |
Settlements | (587) | (596) | (1,164) | (672) |
Net transfers | 173 | (42) | 183 | (37) |
Ending balance | 5,830 | 6,696 | 5,830 | 6,696 |
Unrealized gains (losses) | 45 | (30) | 98 | (77) |
Trading Assets | Corporate and Other Debt | State and Municipal Securities | ||||
Assets | ||||
Beginning balance | 55 | 5 | 250 | 19 |
Realized and unrealized gains (losses) | 3 | 1 | 3 | 1 |
Purchases | 3 | 4 | 3 | 4 |
Sales and Issuances | (52) | 0 | (77) | (15) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 0 | 0 | (170) | 1 |
Ending balance | 9 | 10 | 9 | 10 |
Unrealized gains (losses) | 0 | 2 | 0 | 1 |
Trading Assets | Corporate and Other Debt | Residential Mortgage-, Commercial Mortgage- and Asset-backed Securities | ||||
Assets | ||||
Beginning balance | 216 | 355 | 217 | 438 |
Realized and unrealized gains (losses) | 36 | (4) | 44 | (36) |
Purchases | 32 | 7 | 78 | 26 |
Sales and Issuances | (44) | (87) | (83) | (170) |
Settlements | (5) | 0 | (16) | 0 |
Net transfers | 29 | 84 | 24 | 97 |
Ending balance | 264 | 355 | 264 | 355 |
Unrealized gains (losses) | 8 | (14) | 27 | (33) |
Trading Assets | Corporate and Other Debt | Corporate Bonds | ||||
Assets | ||||
Beginning balance | 445 | 224 | 232 | 267 |
Realized and unrealized gains (losses) | 2 | 17 | (2) | 62 |
Purchases | 144 | 116 | 241 | 113 |
Sales and Issuances | (161) | (35) | (98) | (128) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 19 | (46) | 76 | (38) |
Ending balance | 449 | 276 | 449 | 276 |
Unrealized gains (losses) | (2) | 17 | (1) | 61 |
Trading Assets | Corporate and Other Debt | Collateralized Debt and Loan Obligations | ||||
Assets | ||||
Beginning balance | 78 | 348 | 63 | 430 |
Realized and unrealized gains (losses) | (2) | 18 | (3) | 5 |
Purchases | 5 | 3 | 11 | 22 |
Sales and Issuances | (23) | (178) | (12) | (224) |
Settlements | (1) | 0 | (2) | 0 |
Net transfers | 1 | (82) | 1 | (124) |
Ending balance | 58 | 109 | 58 | 109 |
Unrealized gains (losses) | (2) | 18 | (3) | 17 |
Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | ||||
Assets | ||||
Beginning balance | 4,479 | 6,185 | 5,122 | 5,936 |
Realized and unrealized gains (losses) | 27 | (46) | 89 | (111) |
Purchases | 1,242 | 360 | 1,596 | 970 |
Sales and Issuances | (417) | (484) | (1,002) | (720) |
Settlements | (581) | (596) | (1,146) | (672) |
Net transfers | 114 | (1) | 205 | 15 |
Ending balance | 4,864 | 5,418 | 4,864 | 5,418 |
Unrealized gains (losses) | 11 | (55) | 41 | (121) |
Trading Assets | Corporate and Other Debt | Other Debt | ||||
Assets | ||||
Beginning balance | 194 | 527 | 180 | 448 |
Realized and unrealized gains (losses) | 33 | 4 | 36 | (2) |
Purchases | 57 | 13 | 38 | 133 |
Sales and Issuances | (108) | (19) | (115) | (63) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 10 | 3 | 47 | 12 |
Ending balance | 186 | 528 | 186 | 528 |
Unrealized gains (losses) | 30 | 2 | 34 | (2) |
Trading Assets | Corporate Equities | ||||
Assets | ||||
Beginning balance | 309 | 430 | 445 | 433 |
Realized and unrealized gains (losses) | 8 | (63) | 10 | (45) |
Purchases | 101 | 273 | 97 | 296 |
Sales and Issuances | (59) | (82) | (158) | (119) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 141 | 14 | 106 | 7 |
Ending balance | 500 | 572 | 500 | 572 |
Unrealized gains (losses) | 9 | (63) | 15 | (64) |
Trading Assets | Securities Received as Collateral | ||||
Assets | ||||
Beginning balance | 1 | 1 | 1 | |
Realized and unrealized gains (losses) | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales and Issuances | (1) | (1) | (1) | |
Settlements | 0 | 0 | 0 | |
Net transfers | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 |
Unrealized gains (losses) | 0 | 0 | 0 | |
Trading Assets | Net Derivative and Other Contracts | ||||
Assets | ||||
Beginning balance | 1,596 | (1,060) | 1,788 | (1,424) |
Realized and unrealized gains (losses) | 455 | 227 | 180 | (171) |
Purchases | 709 | 58 | 815 | 82 |
Sales and Issuances | (199) | (151) | (205) | (209) |
Settlements | 647 | 216 | 655 | 837 |
Net transfers | 61 | (826) | 36 | (651) |
Ending balance | 3,269 | (1,536) | 3,269 | (1,536) |
Unrealized gains (losses) | 414 | (127) | 99 | (461) |
Trading Assets | Net Derivative and Other Contracts | Interest Rate Contracts | ||||
Assets | ||||
Beginning balance | 298 | 169 | 420 | 260 |
Realized and unrealized gains (losses) | 35 | (159) | (66) | 305 |
Purchases | 28 | 2 | 47 | 3 |
Sales and Issuances | (27) | (7) | (27) | (21) |
Settlements | 637 | 42 | 652 | (60) |
Net transfers | (1) | (282) | (56) | (722) |
Ending balance | 970 | (235) | 970 | (235) |
Unrealized gains (losses) | 58 | (157) | (55) | 205 |
Trading Assets | Net Derivative and Other Contracts | Credit Contracts | ||||
Assets | ||||
Beginning balance | (351) | (723) | (373) | (844) |
Realized and unrealized gains (losses) | 28 | 65 | 1 | (343) |
Purchases | 0 | 1 | 0 | 1 |
Sales and Issuances | 0 | 0 | 0 | 0 |
Settlements | 16 | 93 | 62 | 153 |
Net transfers | 2 | (550) | 5 | (81) |
Ending balance | (305) | (1,114) | (305) | (1,114) |
Unrealized gains (losses) | 24 | 53 | (13) | (360) |
Trading Assets | Net Derivative and Other Contracts | Foreign Exchange Contracts | ||||
Assets | ||||
Beginning balance | (71) | 126 | (43) | 141 |
Realized and unrealized gains (losses) | 53 | (58) | 23 | (109) |
Purchases | 1 | 0 | 1 | 0 |
Sales and Issuances | (1) | 0 | (1) | 0 |
Settlements | 22 | (94) | 8 | (201) |
Net transfers | (2) | 25 | 14 | 168 |
Ending balance | 2 | (1) | 2 | (1) |
Unrealized gains (losses) | 64 | (47) | 43 | (82) |
Trading Assets | Net Derivative and Other Contracts | Equity Contracts | ||||
Assets | ||||
Beginning balance | 217 | (1,832) | 184 | (2,031) |
Realized and unrealized gains (losses) | 185 | 168 | 118 | (321) |
Purchases | 677 | 50 | 758 | 71 |
Sales and Issuances | (171) | (140) | (158) | (184) |
Settlements | 80 | 263 | 121 | 1,121 |
Net transfers | 105 | 18 | 70 | (129) |
Ending balance | 1,093 | (1,473) | 1,093 | (1,473) |
Unrealized gains (losses) | 189 | (106) | 200 | (434) |
Trading Assets | Net Derivative and Other Contracts | Commodity and Other Contracts | ||||
Assets | ||||
Beginning balance | 1,503 | 1,200 | 1,600 | 1,050 |
Realized and unrealized gains (losses) | 154 | 211 | 104 | 297 |
Purchases | 3 | 5 | 9 | 7 |
Sales and Issuances | 0 | (4) | (19) | (4) |
Settlements | (108) | (88) | (188) | (176) |
Net transfers | (43) | (37) | 3 | 113 |
Ending balance | 1,509 | 1,287 | 1,509 | 1,287 |
Unrealized gains (losses) | 79 | 130 | (76) | 210 |
Trading Assets | Investments | ||||
Assets | ||||
Beginning balance | 961 | 922 | 958 | 707 |
Realized and unrealized gains (losses) | 11 | 5 | 19 | (56) |
Purchases | 20 | 58 | 82 | 404 |
Sales and Issuances | (25) | (11) | (28) | (40) |
Settlements | 4 | 0 | (63) | (41) |
Net transfers | (25) | 0 | (22) | 0 |
Ending balance | 946 | 974 | 946 | 974 |
Unrealized gains (losses) | 7 | 7 | 11 | (53) |
Trading Liabilities | Corporate and Other Debt | ||||
Liabilities | ||||
Beginning balance | 36 | 11 | 36 | 4 |
Realized and unrealized (gains) losses | 0 | 0 | 0 | 3 |
Purchases | (135) | (6) | (164) | (10) |
Sales and Issuances | 124 | 29 | 129 | 14 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | (10) | (25) | 14 | (2) |
Ending balance | 15 | 9 | 15 | 9 |
Unrealized gains (losses) | (1) | (1) | 0 | (3) |
Trading Liabilities | Corporate and Other Debt | Corporate Bonds | ||||
Liabilities | ||||
Beginning balance | 34 | 6 | 34 | 0 |
Realized and unrealized (gains) losses | 0 | 1 | 0 | 5 |
Purchases | (135) | (5) | (164) | (7) |
Sales and Issuances | 124 | 29 | 129 | 10 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | (10) | (25) | 14 | (2) |
Ending balance | 13 | 6 | 13 | 6 |
Unrealized gains (losses) | (1) | (1) | 0 | (5) |
Trading Liabilities | Corporate and Other Debt | Other Debt | ||||
Liabilities | ||||
Beginning balance | 2 | 5 | 2 | 4 |
Realized and unrealized (gains) losses | 0 | (1) | 0 | (2) |
Purchases | 0 | (1) | 0 | (3) |
Sales and Issuances | 0 | 0 | 0 | 4 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 0 | 0 | 0 | 0 |
Ending balance | 2 | 3 | 2 | 3 |
Unrealized gains (losses) | 0 | 0 | 0 | 2 |
Trading Liabilities | Corporate Equities | ||||
Liabilities | ||||
Beginning balance | 0 | 31 | 34 | 17 |
Realized and unrealized (gains) losses | 12 | 28 | 0 | 3 |
Purchases | (34) | (33) | (63) | (22) |
Sales and Issuances | 44 | 5 | 5 | 18 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 5 | (5) | 51 | 10 |
Ending balance | 27 | 26 | 27 | 26 |
Unrealized gains (losses) | (11) | 0 | 0 | (3) |
Trading Liabilities | Securities Received as Collateral | ||||
Liabilities | ||||
Realized and unrealized (gains) losses | 0 | 0 | 0 | 0 |
Purchases | (2) | (1) | 0 | (1) |
Sales and Issuances | 1 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 0 | 0 | 0 | 0 |
Unrealized gains (losses) | 0 | 0 | 0 | 0 |
Trading Liabilities | Obligation to Return Securities Received as Collateral | ||||
Liabilities | ||||
Beginning balance | 2 | 1 | 1 | 1 |
Ending balance | 1 | 0 | 1 | 0 |
Trading Liabilities | Securities Sold Under Agreements to Repurchase | ||||
Liabilities | ||||
Beginning balance | 148 | 151 | 149 | 151 |
Ending balance | 148 | 150 | 148 | 150 |
Trading Liabilities | Other Secured Financings | ||||
Liabilities | ||||
Beginning balance | 203 | 454 | 434 | 461 |
Ending balance | 244 | 441 | 244 | 441 |
Trading Liabilities | Long-term Borrowings | ||||
Liabilities | ||||
Beginning balance | 2,092 | 1,798 | 2,012 | 1,987 |
Ending balance | $ 2,646 | $ 1,929 | $ 2,646 | $ 1,929 |
Fair Value Disclosures (Valuati
Fair Value Disclosures (Valuation Techniques and Sensitivity of Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements) (Details) - Level 3 $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017USD ($)$ / MWh | Dec. 31, 2016USD ($)$ / MWh | |
Recurring | U.S. Agency Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 0 | $ 74 |
Recurring | U.S. Agency Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 96.00% | |
Recurring | U.S. Agency Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 105.00% | |
Recurring | U.S. Agency Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 102.00% | |
Recurring | Other Sovereign Government Obligations | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 100 | $ 6 |
Recurring | Other Sovereign Government Obligations | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 92.00% | |
Recurring | Other Sovereign Government Obligations | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 99.00% | |
Recurring | Other Sovereign Government Obligations | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 96.00% | |
Recurring | State and Municipal Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 9 | $ 250 |
Recurring | State and Municipal Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 53.00% | |
Recurring | State and Municipal Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 100.00% | |
Recurring | State and Municipal Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 91.00% | |
Recurring | Residential Mortgage-, Commercial Mortgage- and Asset-backed Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 264 | $ 217 |
Recurring | Residential Mortgage-, Commercial Mortgage- and Asset-backed Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 0.00% | 0.00% |
Recurring | Residential Mortgage-, Commercial Mortgage- and Asset-backed Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 95.00% | 86.00% |
Recurring | Residential Mortgage-, Commercial Mortgage- and Asset-backed Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 24.00% | 27.00% |
Recurring | Corporate Bonds | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 449 | $ 232 |
Recurring | Corporate Bonds | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 2.00% | 3.00% |
Recurring | Corporate Bonds | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 133.00% | 130.00% |
Recurring | Corporate Bonds | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 87.00% | 70.00% |
Recurring | Corporate Bonds | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 15.00% | 23.00% |
Recurring | Corporate Bonds | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 34.00% | 33.00% |
Recurring | Corporate Bonds | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 24.00% | 30.00% |
Recurring | Collateralized Debt and Loan Obligations | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 58 | $ 63 |
Recurring | Collateralized Debt and Loan Obligations | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 0.00% | 0.00% |
Recurring | Collateralized Debt and Loan Obligations | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 65.00% | 103.00% |
Recurring | Collateralized Debt and Loan Obligations | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 35.00% | 50.00% |
Recurring | Collateralized Debt and Loan Obligations | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit correlation | 42.00% | |
Recurring | Collateralized Debt and Loan Obligations | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit correlation | 49.00% | |
Recurring | Collateralized Debt and Loan Obligations | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit correlation | 44.00% | |
Recurring | Loans and Lending Commitments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 4,864 | $ 5,122 |
Recurring | Loans and Lending Commitments | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable loan price | 55.00% | 45.00% |
Recurring | Loans and Lending Commitments | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable loan price | 104.00% | 100.00% |
Recurring | Loans and Lending Commitments | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable loan price | 95.00% | 84.00% |
Recurring | Loans and Lending Commitments | Corporate Loan Model | Minimum | ||
Fair Value Inputs | ||
Credit spread | 4.02% | |
Recurring | Loans and Lending Commitments | Corporate Loan Model | Maximum | ||
Fair Value Inputs | ||
Credit spread | 6.72% | |
Recurring | Loans and Lending Commitments | Corporate Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Credit spread | 5.57% | |
Recurring | Loans and Lending Commitments | Discounted Cash Flow | ||
Fair Value Inputs | ||
Implied weighted average cost of capital | 5.00% | |
Recurring | Loans and Lending Commitments | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Capitalization rate | 4.00% | |
Recurring | Loans and Lending Commitments | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Capitalization rate | 10.00% | |
Recurring | Loans and Lending Commitments | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Capitalization rate | 4.00% | |
Recurring | Loans and Lending Commitments | Expected Recovery | Minimum | ||
Fair Value Inputs | ||
Asset coverage | 36.00% | 43.00% |
Recurring | Loans and Lending Commitments | Expected Recovery | Maximum | ||
Fair Value Inputs | ||
Asset coverage | 100.00% | 100.00% |
Recurring | Loans and Lending Commitments | Expected Recovery | Weighted Average | ||
Fair Value Inputs | ||
Asset coverage | 85.00% | 83.00% |
Recurring | Loans and Lending Commitments | Margin Loan Model | Minimum | ||
Fair Value Inputs | ||
Discount rate | 1.00% | 2.00% |
Volatility Skew | 10.00% | 21.00% |
Recurring | Loans and Lending Commitments | Margin Loan Model | Maximum | ||
Fair Value Inputs | ||
Discount rate | 5.00% | 8.00% |
Volatility Skew | 32.00% | 63.00% |
Recurring | Loans and Lending Commitments | Margin Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Discount rate | 2.00% | 3.00% |
Volatility Skew | 18.00% | 33.00% |
Recurring | Loans and Lending Commitments | Option Model | ||
Fair Value Inputs | ||
Volatility Skew | (1.00%) | |
Recurring | Other Debt | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 186 | $ 180 |
Recurring | Other Debt | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable loan price | 1.00% | |
Recurring | Other Debt | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable loan price | 74.00% | |
Recurring | Other Debt | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable loan price | 23.00% | |
Recurring | Other Debt | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Discount rate | 9.00% | 7.00% |
Recurring | Other Debt | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Discount rate | 12.00% | 12.00% |
Recurring | Other Debt | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Discount rate | 11.00% | 11.00% |
Recurring | Other Debt | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 17.00% | 16.00% |
Recurring | Other Debt | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 52.00% | 52.00% |
Recurring | Other Debt | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 44.00% | 52.00% |
Recurring | Corporate Equities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 500 | $ 445 |
Recurring | Corporate Equities | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable equity price | 100.00% | 100.00% |
Recurring | Interest Rate Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 970 | $ 420 |
Recurring | Interest Rate Contracts | Option Model | ||
Fair Value Inputs | ||
Interest rate curve | 1.00% | |
Recurring | Interest Rate Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Inflation volatility | 44.00% | 40.00% |
Interest rate - Foreign exchange correlation | 44.00% | |
Interest rate - Inflation correlation | (36.00%) | |
Interest rate curve correlation | 68.00% | |
Interest rate quanto correlation | 1.00% | |
Interest rate volatility skew | 42.00% | 55.00% |
Recurring | Interest Rate Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Inflation volatility | 41.00% | 39.00% |
Interest rate - Foreign exchange correlation | 43.00% | |
Interest rate - Inflation correlation | (34.00%) | |
Interest rate curve correlation | 72.00% | |
Interest rate quanto correlation | (5.00%) | |
Interest rate volatility skew | 41.00% | 56.00% |
Recurring | Interest Rate Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Inflation volatility | 24.00% | 23.00% |
Interest rate - Foreign exchange correlation | 28.00% | |
Interest rate - Inflation correlation | (48.00%) | |
Interest rate curve correlation | 28.00% | |
Interest rate quanto correlation | (17.00%) | |
Interest rate volatility skew | 26.00% | 19.00% |
Recurring | Interest Rate Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Inflation volatility | 63.00% | 55.00% |
Interest rate - Foreign exchange correlation | 58.00% | |
Interest rate - Inflation correlation | (27.00%) | |
Interest rate curve correlation | 96.00% | |
Interest rate quanto correlation | 31.00% | |
Interest rate volatility skew | 94.00% | 117.00% |
Recurring | Credit Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ (305) | $ (373) |
Recurring | Credit Contracts | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Cash synthetic basis | 4.00% | 5.00% |
Comparable bond price | 0.00% | |
Recurring | Credit Contracts | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Cash synthetic basis | 6.00% | 12.00% |
Comparable bond price | 70.00% | |
Recurring | Credit Contracts | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Cash synthetic basis | 5.00% | 11.00% |
Comparable bond price | 23.00% | |
Recurring | Credit Contracts | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit correlation | 37.00% | 32.00% |
Recurring | Credit Contracts | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit correlation | 78.00% | 70.00% |
Recurring | Credit Contracts | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit correlation | 48.00% | 45.00% |
Recurring | Foreign Exchange Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 2 | $ (43) |
Recurring | Foreign Exchange Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Interest rate - Foreign exchange correlation | 44.00% | 44.00% |
Interest rate quanto correlation | 1.00% | |
Interest rate volatility skew | 47.00% | 55.00% |
Recurring | Foreign Exchange Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Interest rate - Foreign exchange correlation | 44.00% | 43.00% |
Interest rate quanto correlation | (5.00%) | |
Interest rate volatility skew | 46.00% | 56.00% |
Recurring | Foreign Exchange Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Interest rate - Foreign exchange correlation | 27.00% | 28.00% |
Interest rate quanto correlation | (17.00%) | |
Interest rate volatility skew | 29.00% | 34.00% |
Recurring | Foreign Exchange Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Interest rate - Foreign exchange correlation | 54.00% | 58.00% |
Interest rate quanto correlation | 31.00% | |
Interest rate volatility skew | 102.00% | 117.00% |
Recurring | Equity Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 1,093 | $ 184 |
Recurring | Equity Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Equity - Interest rate correlation | 23.00% | 12.00% |
Recurring | Equity Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Equity - Interest rate correlation | 24.00% | 4.00% |
Recurring | Equity Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 6.00% | 7.00% |
Equity - Equity correlation | 5.00% | 25.00% |
Equity - Foreign exchange correlation | (70.00%) | (63.00%) |
Equity - Interest rate correlation | (7.00%) | (8.00%) |
Volatility Skew | (3.00%) | (4.00%) |
Recurring | Equity Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 57.00% | 66.00% |
Equity - Equity correlation | 99.00% | 99.00% |
Equity - Foreign exchange correlation | 9.00% | 30.00% |
Equity - Interest rate correlation | 52.00% | 52.00% |
Volatility Skew | 1.00% | 0.00% |
Recurring | Equity Contracts | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 33.00% | 33.00% |
Equity - Equity correlation | 78.00% | 73.00% |
Equity - Foreign exchange correlation | (30.00%) | (43.00%) |
Volatility Skew | (1.00%) | (1.00%) |
Recurring | Commodity Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 1,509 | $ 1,600 |
Recurring | Commodity Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Commodity volatility | 6.00% | 6.00% |
Cross commodity correlation | 5.00% | 5.00% |
Forward power price | $ / MWh | 6 | 7 |
Recurring | Commodity Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Commodity volatility | 62.00% | 130.00% |
Cross commodity correlation | 99.00% | 99.00% |
Forward power price | $ / MWh | 87 | 90 |
Recurring | Commodity Contracts | Option Model | Weighted Average | ||
Fair Value Inputs | ||
Commodity volatility | 17.00% | 18.00% |
Cross commodity correlation | 92.00% | 92.00% |
Forward power price | $ / MWh | 30 | 32 |
Recurring | Investments | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable equity price | 75.00% | 75.00% |
Recurring | Investments | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable equity price | 100.00% | 100.00% |
Recurring | Investments | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable equity price | 90.00% | 93.00% |
Recurring | Investments | Discounted Cash Flow | ||
Fair Value Inputs | ||
Exit multiple | 10 | |
Implied weighted average cost of capital | 10.00% | |
Recurring | Investments | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Exit multiple | 10 | |
Recurring | Investments | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Exit multiple | 24 | |
Recurring | Investments | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Exit multiple | 11 | |
Recurring | Investments | Market Approach | Minimum | ||
Fair Value Inputs | ||
EBITDA multiple | 8 | 6 |
Recurring | Investments | Market Approach | Maximum | ||
Fair Value Inputs | ||
EBITDA multiple | 24 | 24 |
Recurring | Investments | Market Approach | Weighted Average | ||
Fair Value Inputs | ||
EBITDA multiple | 13 | 12 |
Recurring | Other Investments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 946 | $ 958 |
Recurring | Deposits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 79 | 42 |
Recurring | Deposits | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 15.00% | |
Volatility Skew | (1.00%) | |
Recurring | Deposits | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 50.00% | |
Volatility Skew | 0.00% | |
Recurring | Deposits | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 24.00% | |
Volatility Skew | (1.00%) | |
Recurring | Securities Sold Under Agreements to Repurchase | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 148 | $ 149 |
Recurring | Securities Sold Under Agreements to Repurchase | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Funding spread | 1.31% | 1.18% |
Recurring | Securities Sold Under Agreements to Repurchase | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Funding spread | 1.45% | 1.27% |
Recurring | Securities Sold Under Agreements to Repurchase | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Funding spread | 1.36% | 1.21% |
Recurring | Other Secured Financings | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 244 | $ 434 |
Recurring | Other Secured Financings | Discounted Cash Flow | ||
Fair Value Inputs | ||
Discount rate | 4.00% | |
Recurring | Other Secured Financings | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Funding spread | 0.48% | 0.63% |
Recurring | Other Secured Financings | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Funding spread | 0.80% | 0.92% |
Recurring | Other Secured Financings | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Funding spread | 0.64% | 0.78% |
Recurring | Other Secured Financings | Option Model | ||
Fair Value Inputs | ||
Volatility Skew | (1.00%) | (1.00%) |
Recurring | Other Secured Financings | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 10.00% | |
Recurring | Other Secured Financings | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 40.00% | |
Recurring | Other Secured Financings | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 26.00% | |
Recurring | Long-term Borrowings | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 2,646 | $ 2,012 |
Recurring | Long-term Borrowings | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable equity price | 100.00% | |
Recurring | Long-term Borrowings | Option Model | ||
Fair Value Inputs | ||
Interest rate volatility skew | 25.00% | |
Recurring | Long-term Borrowings | Option Model | Simple Average | ||
Fair Value Inputs | ||
Equity volatility discount | 10.00% | 10.00% |
Interest rate volatility skew | 42.00% | |
Recurring | Long-term Borrowings | Option Model | Median | ||
Fair Value Inputs | ||
Equity volatility discount | 11.00% | 10.00% |
Interest rate volatility skew | 41.00% | |
Recurring | Long-term Borrowings | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 6.00% | 7.00% |
Equity - Equity correlation | 36.00% | 35.00% |
Equity - Foreign exchange correlation | (72.00%) | (63.00%) |
Equity volatility discount | 9.00% | 7.00% |
Interest rate volatility skew | 26.00% | |
Volatility Skew | (3.00%) | (2.00%) |
Recurring | Long-term Borrowings | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 42.00% | 42.00% |
Equity - Equity correlation | 98.00% | 99.00% |
Equity - Foreign exchange correlation | 13.00% | 13.00% |
Equity volatility discount | 12.00% | 11.00% |
Interest rate volatility skew | 94.00% | |
Volatility Skew | 1.00% | 0.00% |
Recurring | Long-term Borrowings | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 26.00% | 30.00% |
Equity - Equity correlation | 71.00% | 84.00% |
Equity - Foreign exchange correlation | (29.00%) | (40.00%) |
Volatility Skew | (1.00%) | (1.00%) |
Nonrecurring | Loans | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 1,277 | $ 2,443 |
Nonrecurring | Loans | Corporate Loan Model | Minimum | ||
Fair Value Inputs | ||
Credit spread | 0.90% | 0.90% |
Nonrecurring | Loans | Corporate Loan Model | Maximum | ||
Fair Value Inputs | ||
Credit spread | 5.63% | 4.87% |
Nonrecurring | Loans | Corporate Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Credit spread | 2.73% | 2.08% |
Nonrecurring | Loans | Expected Recovery | Minimum | ||
Fair Value Inputs | ||
Asset coverage | 73.00% | 73.00% |
Nonrecurring | Loans | Expected Recovery | Maximum | ||
Fair Value Inputs | ||
Asset coverage | 95.00% | 99.00% |
Nonrecurring | Loans | Expected Recovery | Weighted Average | ||
Fair Value Inputs | ||
Asset coverage | 84.00% | 97.00% |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value of Investments Measured at NAV) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | $ 2,753 | $ 2,816 |
Commitment | 563 | 475 |
Fair Value, Investments | 2,753 | 2,816 |
Private Equity Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 1,588 | 1,566 |
Commitment | 388 | 335 |
Fair value of non-redeemable funds that will be distributed in (less than 5 years) | 297 | |
Fair value of non-redeemable funds that will be distributed in (5-10 years) | 745 | |
Fair value of non-redeemable funds that will be distributed in (over 10 years) | 546 | |
Fair Value, Investments | 1,588 | 1,566 |
Real Estate Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 1,050 | 1,103 |
Commitment | 157 | 136 |
Fair value of non-redeemable funds that will be distributed in (less than 5 years) | 80 | |
Fair value of non-redeemable funds that will be distributed in (5-10 years) | 644 | |
Fair value of non-redeemable funds that will be distributed in (over 10 years) | 326 | |
Fair Value, Investments | 1,050 | 1,103 |
Hedge Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 115 | 147 |
Commitment | 18 | 4 |
Fair Value, Investments | $ 115 | $ 147 |
Percent of investments redeemable quarterly | 57.00% | |
Percent of investments redeemable every six months | 0.00% | |
Percent of investments redeemable greater than six months | 21.00% | |
Percent of investments redeemable subject to lock-up provisions | 22.00% | |
Redemption restriction period | 3 years | |
Percentage of hedge fund investments that cannot be redeemed due to a gate provision | 23.00% | |
Hedge Funds | Minimum | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Redemption notice period | 6 months |
Fair Value Disclosures (Earning
Fair Value Disclosures (Earnings Impact of Instruments Under to the Fair Value Option) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Securities Purchased Under Agreements to Resell | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | $ 0 | $ 1 | $ 1 | $ 3 |
Deposits | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | 0 | (2) | (1) | (4) |
Short-term Borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | 5 | (9) | (10) | 36 |
Securities Sold Under Agreements to Repurchase | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (7) | (6) | (9) | (17) |
Long-term Borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (1,012) | (1,419) | (2,741) | (2,523) |
Trading Revenues | Securities Purchased Under Agreements to Resell | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (1) | (1) | (1) | (1) |
Trading Revenues | Deposits | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | 0 | (1) | (1) | (3) |
Trading Revenues | Short-term Borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | 6 | (9) | (9) | 36 |
Trading Revenues | Securities Sold Under Agreements to Repurchase | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (3) | (3) | (1) | (12) |
Trading Revenues | Long-term Borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (901) | (1,289) | (2,511) | (2,254) |
Interest Income (Expense) | Securities Purchased Under Agreements to Resell | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | 1 | 2 | 2 | 4 |
Interest Income (Expense) | Deposits | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | 0 | (1) | 0 | (1) |
Interest Income (Expense) | Short-term Borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (1) | 0 | (1) | 0 |
Interest Income (Expense) | Securities Sold Under Agreements to Repurchase | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (4) | (3) | (8) | (5) |
Interest Income (Expense) | Long-term Borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | $ (111) | $ (130) | $ (230) | $ (269) |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value disclosure | |||||
Cumulative pre-tax DVA gain (loss) recognized in OCI | $ (1,191) | $ (1,191) | $ (921) | ||
Short-term and Long-term Borrowings | OCI | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | (281) | $ 226 | (267) | $ 545 | |
Short-term and Long-term Borrowings | Trading Revenues | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | (4) | 0 | (8) | 41 | |
Securities Sold Under Agreements to Repurchase | OCI | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | 0 | (1) | (3) | 3 | |
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 | |
Loans and Other Debt | OCI | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | 0 | 0 | 0 | 0 | |
Loans and Other Debt | Trading Revenues | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | 48 | (14) | 45 | (114) | |
Lending Commitments | 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 | $ 0 | $ 2 | $ 0 | $ 3 |
Fair Value Disclosures (Short-t
Fair Value Disclosures (Short-term and Long-term Borrowings Measured at Fair Value) (Details) - Recurring - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Measurements | ||
Short-term and long-term borrowings | $ 43,808 | $ 39,142 |
Equity | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | 23,605 | 21,066 |
Interest Rates | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | 18,502 | 16,051 |
Foreign Exchange | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | 760 | 1,114 |
Credit Contracts | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | 709 | 647 |
Commodities | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | $ 232 | $ 264 |
Fair Value Disclosures (Net Dif
Fair Value Disclosures (Net Difference of Contractual Principal Amount Over Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures | ||
Loans and other debt | $ 12,986 | $ 13,495 |
Loans 90 or more days past due and/or on nonaccrual status | 11,337 | 11,502 |
Short-term and long-term debt borrowings | $ 621 | $ 720 |
Fair Value Disclosures (Fair 54
Fair Value Disclosures (Fair Value of Loans in Nonaccrual Status) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures | ||
Nonaccrual loans | $ 1,326 | $ 1,536 |
Nonaccrual loans 90 or more days past due | $ 796 | $ 787 |
Fair Value Disclosures (Asset55
Fair Value Disclosures (Assets Measured at Fair Value on a Non-Recurring Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Assets | |||||
Loans | $ 87,007 | $ 87,007 | $ 81,704 | ||
Liabilities | |||||
Other liabilities and accrued expenses-Lending commitments | 15,042 | 15,042 | 15,896 | ||
Total liabilities, carrying value | 761,049 | 761,049 | 737,772 | ||
Fair Value | |||||
Other assets-Other investments | 71,185 | 71,185 | 79,623 | ||
Nonrecurring | |||||
Assets | |||||
Loans | 2,632 | 2,632 | 4,913 | ||
Other assets-Other investments | 123 | ||||
Other assets-Premises, equipment and software costs | 0 | 0 | 25 | ||
Total assets, carrying value | 2,632 | 2,632 | 5,061 | ||
Liabilities | |||||
Other liabilities and accrued expenses-Lending commitments | 212 | 212 | 226 | ||
Total liabilities, carrying value | 212 | 212 | 226 | ||
Nonrecurring | Assets | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) included in net revenues | 19 | $ (94) | 38 | $ (198) | |
Nonrecurring | Loans | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) included in net revenues | 20 | (34) | 44 | (131) | |
Nonrecurring | Other Assets-Other Investments | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) included in net revenues | 0 | (38) | 0 | (40) | |
Nonrecurring | Other Assets-Premises, Equipment and Software Costs | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) included in net revenues | (1) | (22) | (6) | $ (27) | |
Nonrecurring | Liabilities | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) included in net revenues | 21 | 13 | |||
Nonrecurring | Other Liabilities and Accrued Expenses-Lending Commitments | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) included in net revenues | 21 | $ 13 | |||
Nonrecurring | Level 2 | |||||
Fair Value | |||||
Loans | 1,355 | 1,355 | 2,470 | ||
Other assets-Other investments | 0 | ||||
Other assets-Premises, equipment and software costs | 0 | 0 | 22 | ||
Total assets, fair value | 1,355 | 1,355 | 2,492 | ||
Other liabilities and accrued expenses-Lending commitments | 164 | 164 | 166 | ||
Total liabilities | 164 | 164 | 166 | ||
Nonrecurring | Level 3 | |||||
Fair Value | |||||
Loans | 1,277 | 1,277 | 2,443 | ||
Other assets-Other investments | 123 | ||||
Other assets-Premises, equipment and software costs | 0 | 0 | 3 | ||
Total assets, fair value | 1,277 | 1,277 | 2,569 | ||
Other liabilities and accrued expenses-Lending commitments | 48 | 48 | 60 | ||
Total liabilities | $ 48 | $ 48 | $ 60 |
Fair Value Disclosures (Financi
Fair Value Disclosures (Financial Instruments Not Measured at Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Financial Assets | |||
Cash and due from banks | $ 25,008 | $ 22,017 | $ 27,597 |
Interest bearing deposits with banks | 19,651 | 21,364 | $ 28,536 |
Securities purchased under agreements to resell | 97,408 | 101,955 | |
Securities borrowed | 126,722 | 125,236 | |
Customer and other receivables | 54,917 | 46,460 | |
Loans | 87,007 | 81,704 | |
Other assets | 30,171 | 33,979 | |
Financial Liabilities | |||
Deposits | 144,913 | 155,863 | |
Short-term borrowings | 916 | 941 | |
Securities sold under agreement to repurchase | 50,697 | 54,628 | |
Securities loaned | 16,862 | 15,844 | |
Other secured financings | 16,642 | 11,118 | |
Customer and other payables | 197,055 | 190,513 | |
Long-term borrowings | 184,112 | 164,775 | |
Lending Commitments | |||
Additional Disclosures | |||
Commitment amount | 95,090 | 97,409 | |
Carrying Value | |||
Financial Assets | |||
Cash and due from banks | 25,008 | 22,017 | |
Interest bearing deposits with banks | 19,651 | 21,364 | |
Investment securities - HTM securities | 21,088 | 16,922 | |
Securities purchased under agreements to resell | 97,306 | 101,653 | |
Securities borrowed | 126,722 | 125,236 | |
Customer and other receivables | 49,292 | 41,679 | |
Loans | 97,639 | 94,248 | |
Other assets | 30,171 | 33,979 | |
Financial Liabilities | |||
Deposits | 144,783 | 155,800 | |
Short-term borrowings | 334 | 535 | |
Securities sold under agreement to repurchase | 49,959 | 53,899 | |
Securities loaned | 16,862 | 15,844 | |
Other secured financings | 10,911 | 6,077 | |
Customer and other payables | 192,973 | 187,497 | |
Long-term borrowings | 140,886 | 126,039 | |
Fair Value | |||
Financial Assets | |||
Cash and due from banks | 25,008 | 22,017 | |
Interest bearing deposits with banks | 19,651 | 21,364 | |
Investment securities - HTM securities | 20,697 | 16,453 | |
Securities purchased under agreements to resell | 97,255 | 101,655 | |
Securities borrowed | 126,723 | 125,240 | |
Customer and other receivables | 49,162 | 41,537 | |
Loans | 98,898 | 95,027 | |
Other assets | 30,171 | 33,979 | |
Financial Liabilities | |||
Deposits | 144,783 | 155,800 | |
Short-term borrowings | 334 | 535 | |
Securities sold under agreement to repurchase | 49,940 | 53,913 | |
Securities loaned | 16,878 | 15,853 | |
Other secured financings | 10,917 | 6,082 | |
Customer and other payables | 192,973 | 187,497 | |
Long-term borrowings | 145,595 | 129,877 | |
Fair Value | Lending Commitments | |||
Additional Disclosures | |||
Fair value, liability | 917 | 1,241 | |
Fair Value | Level 1 | |||
Financial Assets | |||
Cash and due from banks | 25,008 | 22,017 | |
Interest bearing deposits with banks | 19,651 | 21,364 | |
Investment securities - HTM securities | 8,255 | 5,557 | |
Securities purchased under agreements to resell | 0 | 0 | |
Securities borrowed | 0 | 0 | |
Customer and other receivables | 0 | 0 | |
Loans | 0 | 0 | |
Other assets | 30,171 | 33,979 | |
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 | 12,319 | 10,896 | |
Securities purchased under agreements to resell | 92,537 | 97,825 | |
Securities borrowed | 126,722 | 125,093 | |
Customer and other receivables | 45,052 | 36,962 | |
Loans | 20,319 | 20,906 | |
Other assets | 0 | 0 | |
Financial Liabilities | |||
Deposits | 144,783 | 155,800 | |
Short-term borrowings | 334 | 535 | |
Securities sold under agreement to repurchase | 46,452 | 50,941 | |
Securities loaned | 16,477 | 15,853 | |
Other secured financings | 9,961 | 4,792 | |
Customer and other payables | 192,973 | 187,497 | |
Long-term borrowings | 145,544 | 129,826 | |
Fair Value | Level 2 | Lending Commitments | |||
Additional Disclosures | |||
Fair value, liability | 706 | 973 | |
Fair Value | Level 3 | |||
Financial Assets | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits with banks | 0 | 0 | |
Investment securities - HTM securities | 123 | 0 | |
Securities purchased under agreements to resell | 4,718 | 3,830 | |
Securities borrowed | 1 | 147 | |
Customer and other receivables | 4,110 | 4,575 | |
Loans | 78,579 | 74,121 | |
Other assets | 0 | 0 | |
Financial Liabilities | |||
Deposits | 0 | 0 | |
Short-term borrowings | 0 | 0 | |
Securities sold under agreement to repurchase | 3,488 | 2,972 | |
Securities loaned | 401 | 0 | |
Other secured financings | 956 | 1,290 | |
Customer and other payables | 0 | 0 | |
Long-term borrowings | 51 | 51 | |
Fair Value | Level 3 | Lending Commitments | |||
Additional Disclosures | |||
Fair value, liability | $ 211 | $ 268 |
Derivative Instruments and He57
Derivative Instruments and Hedging Activities (Derivative Assets and Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Assets | |||
Gross amounts | $ 379,484 | $ 442,452 | |
Counterparty netting | (306,550) | (363,572) | |
Cash collateral netting | (42,794) | (47,674) | |
Total derivative assets | 30,140 | 31,206 | |
Amounts not offset against financial instruments collateral | (11,213) | (10,293) | |
Amounts not offset against other cash collateral | (10) | (124) | |
Net amounts | 18,917 | 20,789 | |
Derivative Liabilities | |||
Gross amounts | 362,785 | 428,983 | |
Counterparty netting | (306,550) | (363,572) | |
Cash collateral netting | (29,530) | (36,096) | |
Total derivative liabilities | 26,705 | 29,315 | |
Amounts not offset against financial instruments collateral | (6,444) | (8,223) | |
Amounts not offset against other cash collateral | (84) | (11) | |
Net amounts | 20,177 | 21,081 | |
Decrease of gross derivative assets | $ 13,000 | ||
Decrease of gross derivative liabilities | $ 20,000 | ||
Derivative assets, 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 enforceable | 3,300 | 3,700 | |
Derivative liabilities, 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 enforceable | 3,500 | 3,500 | |
Bilateral OTC | |||
Derivative Assets | |||
Gross amounts | 280,596 | 316,493 | |
Counterparty netting | (215,065) | (243,488) | |
Cash collateral netting | (38,973) | (45,875) | |
Total derivative assets | 26,558 | 27,130 | |
Amounts not offset against financial instruments collateral | (11,213) | (10,293) | |
Amounts not offset against other cash collateral | (10) | (124) | |
Net amounts | 15,335 | 16,713 | |
Derivative Liabilities | |||
Gross amounts | 268,388 | 299,588 | |
Counterparty netting | (215,065) | (243,488) | |
Cash collateral netting | (29,136) | (30,405) | |
Total derivative liabilities | 24,187 | 25,695 | |
Amounts not offset against financial instruments collateral | (6,276) | (7,638) | |
Amounts not offset against other cash collateral | (26) | (10) | |
Net amounts | 17,885 | 18,047 | |
Cleared OTC | |||
Derivative Assets | |||
Gross amounts | 75,819 | 103,698 | |
Counterparty netting | (71,178) | (100,477) | |
Cash collateral netting | (3,821) | (1,799) | |
Total derivative assets | 820 | 1,422 | |
Amounts not offset against financial instruments collateral | 0 | 0 | |
Amounts not offset against other cash collateral | 0 | 0 | |
Net amounts | 820 | 1,422 | |
Derivative Liabilities | |||
Gross amounts | 71,901 | 107,417 | |
Counterparty netting | (71,178) | (100,477) | |
Cash collateral netting | (394) | (5,691) | |
Total derivative liabilities | 329 | 1,249 | |
Amounts not offset against financial instruments collateral | 0 | 0 | |
Amounts not offset against other cash collateral | (58) | (1) | |
Net amounts | 271 | 1,248 | |
Exchange Traded | |||
Derivative Assets | |||
Gross amounts | 23,069 | 22,261 | |
Counterparty netting | (20,307) | (19,607) | |
Cash collateral netting | 0 | 0 | |
Total derivative assets | 2,762 | 2,654 | |
Amounts not offset against financial instruments collateral | 0 | 0 | |
Amounts not offset against other cash collateral | 0 | 0 | |
Net amounts | 2,762 | 2,654 | |
Derivative Liabilities | |||
Gross amounts | 22,496 | 21,978 | |
Counterparty netting | (20,307) | (19,607) | |
Cash collateral netting | 0 | 0 | |
Total derivative liabilities | 2,189 | 2,371 | |
Amounts not offset against financial instruments collateral | (168) | (585) | |
Amounts not offset against other cash collateral | 0 | 0 | |
Net amounts | 2,021 | 1,786 | |
Futures Contracts | Customer and Other Receivables | Long | |||
Derivative Liabilities | |||
Derivative assets, unsettled fair value | 852 | 784 | |
Futures Contracts | Customer and Other Payables | Short | |||
Derivative Liabilities | |||
Derivative liabilities, unsettled fair value | 425 | 174 | |
Designated as Accounting Hedges | |||
Derivative Assets | |||
Gross amounts | 2,540 | 3,240 | |
Derivative Liabilities | |||
Gross amounts | 995 | 764 | |
Designated as Accounting Hedges | Bilateral OTC | |||
Derivative Assets | |||
Gross amounts | 1,595 | 2,173 | |
Derivative Liabilities | |||
Gross amounts | 198 | 92 | |
Designated as Accounting Hedges | Cleared OTC | |||
Derivative Assets | |||
Gross amounts | 945 | 1,067 | |
Derivative Liabilities | |||
Gross amounts | 797 | 672 | |
Designated as Accounting Hedges | Exchange Traded | |||
Derivative Assets | |||
Gross amounts | 0 | 0 | |
Derivative Liabilities | |||
Gross amounts | 0 | 0 | |
Designated as Accounting Hedges | Interest Rate Contracts | |||
Derivative Assets | |||
Gross amounts | 2,484 | 2,973 | |
Derivative Liabilities | |||
Gross amounts | 817 | 724 | |
Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross amounts | 1,547 | 1,924 | |
Derivative Liabilities | |||
Gross amounts | 60 | 77 | |
Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross amounts | 937 | 1,049 | |
Derivative Liabilities | |||
Gross amounts | 757 | 647 | |
Designated as Accounting Hedges | Interest Rate Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross amounts | 0 | 0 | |
Derivative Liabilities | |||
Gross amounts | 0 | 0 | |
Designated as Accounting Hedges | Foreign Exchange Contracts | |||
Derivative Assets | |||
Gross amounts | 56 | 267 | |
Derivative Liabilities | |||
Gross amounts | 178 | 40 | |
Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross amounts | 48 | 249 | |
Derivative Liabilities | |||
Gross amounts | 138 | 15 | |
Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross amounts | 8 | 18 | |
Derivative Liabilities | |||
Gross amounts | 40 | 25 | |
Designated as Accounting Hedges | Foreign Exchange Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross amounts | 0 | 0 | |
Derivative Liabilities | |||
Gross amounts | 0 | 0 | |
Not Designated as Accounting Hedges | |||
Derivative Assets | |||
Gross amounts | 376,944 | 439,212 | |
Derivative Liabilities | |||
Gross amounts | 361,790 | 428,219 | |
Not Designated as Accounting Hedges | Bilateral OTC | |||
Derivative Assets | |||
Gross amounts | 279,001 | 314,320 | |
Derivative Liabilities | |||
Gross amounts | 268,190 | 299,496 | |
Not Designated as Accounting Hedges | Cleared OTC | |||
Derivative Assets | |||
Gross amounts | 74,874 | 102,631 | |
Derivative Liabilities | |||
Gross amounts | 71,104 | 106,745 | |
Not Designated as Accounting Hedges | Exchange Traded | |||
Derivative Assets | |||
Gross amounts | 23,069 | 22,261 | |
Derivative Liabilities | |||
Gross amounts | 22,496 | 21,978 | |
Not Designated as Accounting Hedges | Interest Rate Contracts | |||
Derivative Assets | |||
Gross amounts | 254,666 | 299,937 | |
Derivative Liabilities | |||
Gross amounts | 234,557 | 286,852 | |
Not Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross amounts | 182,333 | 200,336 | |
Derivative Liabilities | |||
Gross amounts | 166,210 | 183,063 | |
Not Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross amounts | 72,140 | 99,217 | |
Derivative Liabilities | |||
Gross amounts | 68,206 | 103,392 | |
Not Designated as Accounting Hedges | Interest Rate Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross amounts | 193 | 384 | |
Derivative Liabilities | |||
Gross amounts | 141 | 397 | |
Not Designated as Accounting Hedges | Credit Contracts | |||
Derivative Assets | |||
Gross amounts | 9,472 | 12,229 | |
Derivative Liabilities | |||
Gross amounts | 10,405 | 13,425 | |
Not Designated as Accounting Hedges | Credit Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross amounts | 7,282 | 9,837 | |
Derivative Liabilities | |||
Gross amounts | 8,132 | 11,024 | |
Not Designated as Accounting Hedges | Credit Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross amounts | 2,190 | 2,392 | |
Derivative Liabilities | |||
Gross amounts | 2,273 | 2,401 | |
Not Designated as Accounting Hedges | Credit Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross amounts | 0 | 0 | |
Derivative Liabilities | |||
Gross amounts | 0 | 0 | |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | |||
Derivative Assets | |||
Gross amounts | 55,001 | 74,898 | |
Derivative Liabilities | |||
Gross amounts | 57,987 | 75,543 | |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross amounts | 54,357 | 73,645 | |
Derivative Liabilities | |||
Gross amounts | 57,314 | 74,575 | |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross amounts | 544 | 1,022 | |
Derivative Liabilities | |||
Gross amounts | 625 | 952 | |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross amounts | 100 | 231 | |
Derivative Liabilities | |||
Gross amounts | 48 | 16 | |
Not Designated as Accounting Hedges | Equity Contracts | |||
Derivative Assets | |||
Gross amounts | 45,382 | 38,629 | |
Derivative Liabilities | |||
Gross amounts | 47,675 | 40,514 | |
Not Designated as Accounting Hedges | Equity Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross amounts | 24,832 | 20,710 | |
Derivative Liabilities | |||
Gross amounts | 27,653 | 22,531 | |
Not Designated as Accounting Hedges | Equity Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross amounts | 0 | 0 | |
Derivative Liabilities | |||
Gross amounts | 0 | 0 | |
Not Designated as Accounting Hedges | Equity Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross amounts | 20,550 | 17,919 | |
Derivative Liabilities | |||
Gross amounts | 20,022 | 17,983 | |
Not Designated as Accounting Hedges | Commodity and Other Contracts | |||
Derivative Assets | |||
Gross amounts | 12,423 | 13,519 | |
Derivative Liabilities | |||
Gross amounts | 11,166 | 11,885 | |
Not Designated as Accounting Hedges | Commodity and Other Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross amounts | 10,197 | 9,792 | |
Derivative Liabilities | |||
Gross amounts | 8,881 | 8,303 | |
Not Designated as Accounting Hedges | Commodity and Other Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross amounts | 0 | 0 | |
Derivative Liabilities | |||
Gross amounts | 0 | 0 | |
Not Designated as Accounting Hedges | Commodity and Other Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross amounts | 2,226 | 3,727 | |
Derivative Liabilities | |||
Gross amounts | $ 2,285 | $ 3,582 |
Derivative Instruments and He58
Derivative Instruments and Hedging Activities (Derivative Notionals) (Details) - USD ($) $ in Billions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Notional Amount | ||
Derivative assets | $ 17,493 | $ 15,286 |
Derivative liabilities | 14,109 | 13,307 |
Futures Contracts | Long [Member] | ||
Derivatives, Notional Amount | ||
Derivative assets | 2,765 | 2,088 |
Futures Contracts | Short [Member] | ||
Derivatives, Notional Amount | ||
Derivative liabilities | 732 | 332 |
Bilateral OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 6,448 | 5,940 |
Derivative liabilities | 6,288 | 5,780 |
Cleared OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 7,476 | 6,426 |
Derivative liabilities | 6,146 | 6,284 |
Exchange Traded | ||
Derivatives, Notional Amount | ||
Derivative assets | 3,569 | 2,920 |
Derivative liabilities | 1,675 | 1,243 |
Designated as Accounting Hedges | ||
Derivatives, Notional Amount | ||
Derivative assets | 65 | 74 |
Derivative liabilities | 103 | 56 |
Designated as Accounting Hedges | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 61 | 68 |
Derivative liabilities | 97 | 54 |
Designated as Accounting Hedges | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 4 | 6 |
Derivative liabilities | 6 | 2 |
Designated as Accounting Hedges | Bilateral OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 29 | 36 |
Derivative liabilities | 7 | 3 |
Designated as Accounting Hedges | Bilateral OTC | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 25 | 30 |
Derivative liabilities | 2 | 2 |
Designated as Accounting Hedges | Bilateral OTC | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 4 | 6 |
Derivative liabilities | 5 | 1 |
Designated as Accounting Hedges | Cleared OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 36 | 38 |
Derivative liabilities | 96 | 53 |
Designated as Accounting Hedges | Cleared OTC | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 36 | 38 |
Derivative liabilities | 95 | 52 |
Designated as Accounting Hedges | Cleared OTC | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 1 | 1 |
Designated as Accounting Hedges | Exchange Traded | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Designated as Accounting Hedges | Exchange Traded | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Designated as Accounting Hedges | Exchange Traded | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | ||
Derivatives, Notional Amount | ||
Derivative assets | 17,428 | 15,212 |
Derivative liabilities | 14,006 | 13,251 |
Not Designated as Accounting Hedges | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 14,387 | 12,396 |
Derivative liabilities | 10,808 | 10,446 |
Not Designated as Accounting Hedges | Credit Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 360 | 445 |
Derivative liabilities | 374 | 455 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 1,849 | 1,645 |
Derivative liabilities | 1,954 | 1,619 |
Not Designated as Accounting Hedges | Equity Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 679 | 580 |
Derivative liabilities | 725 | 594 |
Not Designated as Accounting Hedges | Commodity and Other Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 153 | 146 |
Derivative liabilities | 145 | 137 |
Not Designated as Accounting Hedges | Bilateral OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 6,419 | 5,904 |
Derivative liabilities | 6,281 | 5,777 |
Not Designated as Accounting Hedges | Bilateral OTC | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 3,928 | 3,586 |
Derivative liabilities | 3,671 | 3,462 |
Not Designated as Accounting Hedges | Bilateral OTC | Credit Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 255 | 333 |
Derivative liabilities | 287 | 359 |
Not Designated as Accounting Hedges | Bilateral OTC | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 1,779 | 1,580 |
Derivative liabilities | 1,869 | 1,557 |
Not Designated as Accounting Hedges | Bilateral OTC | Equity Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 388 | 338 |
Derivative liabilities | 378 | 321 |
Not Designated as Accounting Hedges | Bilateral OTC | Commodity and Other Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 69 | 67 |
Derivative liabilities | 76 | 78 |
Not Designated as Accounting Hedges | Cleared OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 7,440 | 6,388 |
Derivative liabilities | 6,050 | 6,231 |
Not Designated as Accounting Hedges | Cleared OTC | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 7,275 | 6,224 |
Derivative liabilities | 5,901 | 6,087 |
Not Designated as Accounting Hedges | Cleared OTC | Credit Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 105 | 112 |
Derivative liabilities | 87 | 96 |
Not Designated as Accounting Hedges | Cleared OTC | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 60 | 52 |
Derivative liabilities | 62 | 48 |
Not Designated as Accounting Hedges | Cleared OTC | Equity Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | Cleared OTC | Commodity and Other Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | Exchange Traded | ||
Derivatives, Notional Amount | ||
Derivative assets | 3,569 | 2,920 |
Derivative liabilities | 1,675 | 1,243 |
Not Designated as Accounting Hedges | Exchange Traded | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 3,184 | 2,586 |
Derivative liabilities | 1,236 | 897 |
Not Designated as Accounting Hedges | Exchange Traded | Credit Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | Exchange Traded | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 10 | 13 |
Derivative liabilities | 23 | 14 |
Not Designated as Accounting Hedges | Exchange Traded | Equity Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 291 | 242 |
Derivative liabilities | 347 | 273 |
Not Designated as Accounting Hedges | Exchange Traded | Commodity and Other Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 84 | 79 |
Derivative liabilities | $ 69 | $ 59 |
Derivative Instruments and He59
Derivative Instruments and Hedging Activities (Gains (Losses) on Fair Value Hedges and on Effective Portion of Net Investment Hedges, and Trading Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Trading Revenues by Product Type | ||||
Trading revenues | $ 2,931 | $ 2,746 | ||
Trading revenues | 2,931 | 2,746 | $ 6,166 | $ 4,811 |
Interest Rate Contracts | ||||
Trading Revenues by Product Type | ||||
Trading revenues | 451 | 320 | 1,045 | 626 |
Foreign Exchange Contracts | ||||
Trading Revenues by Product Type | ||||
Trading revenues | 197 | 362 | 432 | 599 |
Equity Security and Index Contracts | ||||
Trading Revenues by Product Type | ||||
Trading revenues | 1,818 | 1,615 | 3,459 | 2,945 |
Commodity and Other Contracts | ||||
Trading Revenues by Product Type | ||||
Trading revenues | 110 | 20 | 299 | (124) |
Credit Contracts | ||||
Trading Revenues by Product Type | ||||
Trading revenues | 355 | 429 | 931 | 765 |
Fair Value Hedges | Interest Expense | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | ||||
Gains (losses) recognized in earnings | (75) | (24) | (165) | (163) |
Fair Value Hedges | Interest Expense | Derivatives | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | ||||
Gains (losses) recognized in earnings | 138 | 969 | (660) | 3,119 |
Fair Value Hedges | Interest Expense | Borrowings | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | ||||
Gains (losses) recognized in earnings | (213) | (993) | 495 | (3,282) |
Net Investment Hedges | Foreign Exchange Contracts | ||||
Gains (Losses) Recognized in Other Comprehensive Income (Loss), Effective Portion | ||||
Gains (losses) recognized in OCI | (47) | (112) | (251) | (336) |
Forward points excluded from hedge effectiveness testing - Interest income | $ (9) | $ (19) | $ (19) | $ (39) |
Derivative Instruments and He60
Derivative Instruments and Hedging Activities (Fair Value of OTC Derivatives in a Gain Position) (Details) - OTC - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Credit Derivatives | ||
Years to maturity, less than 1 (year) | $ 14,246 | $ 19,277 |
Years to maturity, 1 - 3 (years) | 12,133 | 14,274 |
Years to maturity, 3 - 5 (years) | 12,155 | 13,511 |
Years to maturity, over 5 (years) | 47,618 | 49,264 |
Total derivative assets | 86,152 | 96,326 |
Cross-maturity and cash collateral netting | (58,784) | (67,898) |
Net amounts post-cash collateral | 27,368 | 28,428 |
Net amounts post-collateral | 16,155 | 18,135 |
AAA | ||
Credit Derivatives | ||
Years to maturity, less than 1 (year) | 232 | 150 |
Years to maturity, 1 - 3 (years) | 308 | 428 |
Years to maturity, 3 - 5 (years) | 406 | 918 |
Years to maturity, over 5 (years) | 3,168 | 2,931 |
Total derivative assets | 4,114 | 4,427 |
Cross-maturity and cash collateral netting | (3,091) | (3,900) |
Net amounts post-cash collateral | 1,023 | 527 |
Net amounts post-collateral | 952 | 485 |
AA | ||
Credit Derivatives | ||
Years to maturity, less than 1 (year) | 1,357 | 3,177 |
Years to maturity, 1 - 3 (years) | 1,913 | 2,383 |
Years to maturity, 3 - 5 (years) | 2,336 | 2,942 |
Years to maturity, over 5 (years) | 10,841 | 10,194 |
Total derivative assets | 16,447 | 18,696 |
Cross-maturity and cash collateral netting | (10,935) | (11,813) |
Net amounts post-cash collateral | 5,512 | 6,883 |
Net amounts post-collateral | 2,756 | 4,114 |
A | ||
Credit Derivatives | ||
Years to maturity, less than 1 (year) | 6,487 | 9,244 |
Years to maturity, 1 - 3 (years) | 5,123 | 6,676 |
Years to maturity, 3 - 5 (years) | 4,342 | 5,495 |
Years to maturity, over 5 (years) | 18,625 | 21,322 |
Total derivative assets | 34,577 | 42,737 |
Cross-maturity and cash collateral netting | (25,571) | (31,425) |
Net amounts post-cash collateral | 9,006 | 11,312 |
Net amounts post-collateral | 5,118 | 6,769 |
BBB | ||
Credit Derivatives | ||
Years to maturity, less than 1 (year) | 3,417 | 4,423 |
Years to maturity, 1 - 3 (years) | 2,685 | 3,085 |
Years to maturity, 3 - 5 (years) | 2,001 | 2,434 |
Years to maturity, over 5 (years) | 12,737 | 13,023 |
Total derivative assets | 20,840 | 22,965 |
Cross-maturity and cash collateral netting | (14,301) | (16,629) |
Net amounts post-cash collateral | 6,539 | 6,336 |
Net amounts post-collateral | 4,908 | 4,852 |
Non-investment Grade | ||
Credit Derivatives | ||
Years to maturity, less than 1 (year) | 2,753 | 2,283 |
Years to maturity, 1 - 3 (years) | 2,104 | 1,702 |
Years to maturity, 3 - 5 (years) | 3,070 | 1,722 |
Years to maturity, over 5 (years) | 2,247 | 1,794 |
Total derivative assets | 10,174 | 7,501 |
Cross-maturity and cash collateral netting | (4,886) | (4,131) |
Net amounts post-cash collateral | 5,288 | 3,370 |
Net amounts post-collateral | $ 2,421 | $ 1,915 |
Derivative Instruments and He61
Derivative Instruments and Hedging Activities (Credit Risk-Related Contingencies) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives | ||
Net derivative liabilities with credit-risk-related contingent features | $ 19,335 | $ 22,939 |
Collateral posted | 14,672 | $ 17,040 |
Bilateral arrangement | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade of either party under bilateral arrangements | 1,187 | |
One-notch Downgrade | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade of either party under bilateral arrangements | 1,042 | |
Two-notch Downgrade | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade of either party under bilateral arrangements | $ 401 |
Derivative Instruments and He62
Derivative Instruments and Hedging Activities (Credit Derivatives and Other Credit Contracts) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Protection Sold | ||
Credit Derivatives | ||
Notional | $ 350,985 | $ 430,000 |
Fair value (asset)/liability | (1,726) | (1,049) |
Protection Sold | Less than 1 (Year) | ||
Credit Derivatives | ||
Notional | 133,681 | 166,734 |
Protection Sold | 1 - 3 (Years) | ||
Credit Derivatives | ||
Notional | 92,988 | 140,993 |
Protection Sold | 3 - 5 (Years) | ||
Credit Derivatives | ||
Notional | 96,444 | 91,784 |
Protection Sold | Over 5 (Years) | ||
Credit Derivatives | ||
Notional | 27,872 | 30,489 |
Protection Sold | Credit Default Swaps | ||
Credit Derivatives | ||
Notional | 350,816 | 429,730 |
Fair value (asset)/liability | (1,730) | (1,049) |
Protection Sold | Credit Default Swaps | Less than 1 (Year) | ||
Credit Derivatives | ||
Notional | 133,654 | 166,685 |
Protection Sold | Credit Default Swaps | 1 - 3 (Years) | ||
Credit Derivatives | ||
Notional | 92,988 | 140,987 |
Protection Sold | Credit Default Swaps | 3 - 5 (Years) | ||
Credit Derivatives | ||
Notional | 96,431 | 91,784 |
Protection Sold | Credit Default Swaps | Over 5 (Years) | ||
Credit Derivatives | ||
Notional | 27,743 | 30,274 |
Protection Sold | Single Name | ||
Credit Derivatives | ||
Notional | 195,821 | 266,918 |
Fair value (asset)/liability | (1,274) | (753) |
Protection Sold | Single Name | Investment Grade | ||
Credit Derivatives | ||
Notional | 145,999 | 195,067 |
Fair value (asset)/liability | (1,397) | (1,060) |
Protection Sold | Single Name | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 49,822 | 71,851 |
Fair value (asset)/liability | 123 | 307 |
Protection Sold | Single Name | Less than 1 (Year) | ||
Credit Derivatives | ||
Notional | 79,553 | 114,020 |
Protection Sold | Single Name | Less than 1 (Year) | Investment Grade | ||
Credit Derivatives | ||
Notional | 57,174 | 79,449 |
Protection Sold | Single Name | Less than 1 (Year) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 22,379 | 34,571 |
Protection Sold | Single Name | 1 - 3 (Years) | ||
Credit Derivatives | ||
Notional | 71,907 | 96,616 |
Protection Sold | Single Name | 1 - 3 (Years) | Investment Grade | ||
Credit Derivatives | ||
Notional | 52,949 | 70,796 |
Protection Sold | Single Name | 1 - 3 (Years) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 18,958 | 25,820 |
Protection Sold | Single Name | 3 - 5 (Years) | ||
Credit Derivatives | ||
Notional | 33,818 | 44,965 |
Protection Sold | Single Name | 3 - 5 (Years) | Investment Grade | ||
Credit Derivatives | ||
Notional | 26,353 | 34,529 |
Protection Sold | Single Name | 3 - 5 (Years) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 7,465 | 10,436 |
Protection Sold | Single Name | Over 5 (Years) | ||
Credit Derivatives | ||
Notional | 10,543 | 11,317 |
Protection Sold | Single Name | Over 5 (Years) | Investment Grade | ||
Credit Derivatives | ||
Notional | 9,523 | 10,293 |
Protection Sold | Single Name | Over 5 (Years) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 1,020 | 1,024 |
Protection Sold | Total Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Notional | 154,995 | 162,812 |
Fair value (asset)/liability | (456) | (296) |
Protection Sold | Total Index and Basket Credit Default Swaps | Investment Grade | ||
Credit Derivatives | ||
Notional | 97,736 | 92,074 |
Fair value (asset)/liability | (999) | (846) |
Protection Sold | Total Index and Basket Credit Default Swaps | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 57,259 | 70,738 |
Fair value (asset)/liability | 543 | 550 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 (Year) | ||
Credit Derivatives | ||
Notional | 54,101 | 52,665 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 (Year) | Investment Grade | ||
Credit Derivatives | ||
Notional | 26,972 | 26,530 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 (Year) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 27,129 | 26,135 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 (Years) | ||
Credit Derivatives | ||
Notional | 21,081 | 44,371 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 (Years) | Investment Grade | ||
Credit Derivatives | ||
Notional | 14,044 | 21,388 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 (Years) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 7,037 | 22,983 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 (Years) | ||
Credit Derivatives | ||
Notional | 62,613 | 46,819 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 (Years) | Investment Grade | ||
Credit Derivatives | ||
Notional | 48,806 | 35,060 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 (Years) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 13,807 | 11,759 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 (Years) | ||
Credit Derivatives | ||
Notional | 17,200 | 18,957 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 (Years) | Investment Grade | ||
Credit Derivatives | ||
Notional | 7,914 | 9,096 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 (Years) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 9,286 | 9,861 |
Protection Sold | Index and Basket | ||
Credit Derivatives | ||
Notional | 131,476 | 130,383 |
Fair value (asset)/liability | (48) | 374 |
Protection Sold | Tranched Index and Basket | ||
Credit Derivatives | ||
Notional | 23,519 | 32,429 |
Fair value (asset)/liability | (408) | (670) |
Protection Sold | Single Name, and Non-tranched Index and Basket With Identical Underlying Reference Obligations | ||
Credit Derivatives | ||
Notional | 323,765 | 395,536 |
Protection Sold | Other Credit Contracts | ||
Credit Derivatives | ||
Notional | 169 | 270 |
Fair value (asset)/liability | 4 | 0 |
Protection Sold | Other Credit Contracts | Less than 1 (Year) | ||
Credit Derivatives | ||
Notional | 27 | 49 |
Protection Sold | Other Credit Contracts | 1 - 3 (Years) | ||
Credit Derivatives | ||
Notional | 0 | 6 |
Protection Sold | Other Credit Contracts | 3 - 5 (Years) | ||
Credit Derivatives | ||
Notional | 13 | 0 |
Protection Sold | Other Credit Contracts | Over 5 (Years) | ||
Credit Derivatives | ||
Notional | 129 | 215 |
Protection Purchased | Credit Default Swaps | ||
Credit Derivatives | ||
Notional | 383,172 | 470,189 |
Fair value (asset)/liability | 2,663 | 2,245 |
Protection Purchased | Single Name | ||
Credit Derivatives | ||
Notional | 207,973 | 269,623 |
Fair value (asset)/liability | 1,613 | 826 |
Protection Purchased | Index and Basket | ||
Credit Derivatives | ||
Notional | 126,594 | 122,061 |
Fair value (asset)/liability | (113) | (481) |
Protection Purchased | Tranched Index and Basket | ||
Credit Derivatives | ||
Notional | 48,605 | 78,505 |
Fair value (asset)/liability | 1,163 | 1,900 |
Protection Purchased | Single Name, and Non-tranched Index and Basket With Identical Underlying Reference Obligations | ||
Credit Derivatives | ||
Notional | $ 330,349 | $ 389,221 |
Investment Securities (AFS and
Investment Securities (AFS and HTM Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Investment securities | ||
Total Investment securities: Amortized cost | $ 72,206 | $ 81,028 |
Total Investment securities: Gross unrealized gains | 89 | 43 |
Total Investment securities: Gross unrealized losses | 1,110 | 1,448 |
Total Investment securities: Fair value | 71,185 | 79,623 |
AFS securities | ||
AFS debt securities: Amortized cost | 51,103 | 64,091 |
AFS debt securities: Gross unrealized gains | 70 | 41 |
AFS debt securities: Gross unrealized losses | 691 | 968 |
AFS debt securities: Fair value | 50,482 | 63,164 |
AFS equity securities: Amortized cost | 15 | 15 |
AFS equity securities: Gross unrealized gains | 0 | 0 |
AFS equity securities: Gross unrealized losses | 9 | 9 |
AFS equity securities: Fair value | 6 | 6 |
Total AFS securities: Amortized cost | 51,118 | 64,106 |
Total AFS securities: Gross unrealized gains | 70 | 41 |
Total AFS securities: Gross unrealized losses | 700 | 977 |
Total AFS securities: Fair value | 50,488 | 63,170 |
HTM securities | ||
HTM: Amortized Cost | 21,088 | 16,922 |
HTM: Gross unrealized gains | 19 | 2 |
HTM: Gross unrealized losses | 410 | 471 |
HTM securities: Fair value | 20,697 | 16,453 |
U.S. Government and Agency Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 43,294 | 50,719 |
AFS debt securities: Gross unrealized gains | 36 | 15 |
AFS debt securities: Gross unrealized losses | 617 | 823 |
AFS debt securities: Fair value | 42,713 | 49,911 |
HTM securities | ||
HTM: Amortized Cost | 20,964 | |
HTM: Gross unrealized gains | 19 | |
HTM: Gross unrealized losses | 409 | |
HTM securities: Fair value | 20,574 | |
U.S. Treasury Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 21,580 | 28,371 |
AFS debt securities: Gross unrealized gains | 0 | 1 |
AFS debt securities: Gross unrealized losses | 417 | 545 |
AFS debt securities: Fair value | 21,163 | 27,827 |
HTM securities | ||
HTM: Amortized Cost | 8,463 | 5,839 |
HTM: Gross unrealized gains | 9 | 1 |
HTM: Gross unrealized losses | 216 | 283 |
HTM securities: Fair value | 8,256 | 5,557 |
U.S. Agency Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 21,714 | 22,348 |
AFS debt securities: Gross unrealized gains | 36 | 14 |
AFS debt securities: Gross unrealized losses | 200 | 278 |
AFS debt securities: Fair value | 21,550 | 22,084 |
HTM securities | ||
HTM: Amortized Cost | 12,501 | 11,083 |
HTM: Gross unrealized gains | 10 | 1 |
HTM: Gross unrealized losses | 193 | 188 |
HTM securities: Fair value | 12,318 | 10,896 |
Corporate and Other Debt | ||
AFS securities | ||
AFS debt securities: Amortized cost | 7,809 | 13,372 |
AFS debt securities: Gross unrealized gains | 34 | 26 |
AFS debt securities: Gross unrealized losses | 74 | 145 |
AFS debt securities: Fair value | 7,769 | 13,253 |
HTM securities | ||
HTM: Amortized Cost | 124 | |
HTM: Gross unrealized gains | 0 | |
HTM: Gross unrealized losses | 1 | |
HTM securities: Fair value | 123 | |
Commercial Mortgage-backed Securities: Agency | ||
AFS securities | ||
AFS debt securities: Amortized cost | 1,536 | 1,850 |
AFS debt securities: Gross unrealized gains | 2 | 2 |
AFS debt securities: Gross unrealized losses | 42 | 44 |
AFS debt securities: Fair value | 1,496 | 1,808 |
Commercial Mortgage-backed Securities: Non-Agency | ||
AFS securities | ||
AFS debt securities: Amortized cost | 1,578 | 2,250 |
AFS debt securities: Gross unrealized gains | 11 | 11 |
AFS debt securities: Gross unrealized losses | 9 | 16 |
AFS debt securities: Fair value | 1,580 | 2,245 |
HTM securities | ||
HTM: Amortized Cost | 124 | |
HTM: Gross unrealized gains | 0 | |
HTM: Gross unrealized losses | 1 | |
HTM securities: Fair value | 123 | |
Auto Loan Asset-backed Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 0 | 1,509 |
AFS debt securities: Gross unrealized gains | 0 | 1 |
AFS debt securities: Gross unrealized losses | 0 | 1 |
AFS debt securities: Fair value | 0 | 1,509 |
Corporate Bonds | ||
AFS securities | ||
AFS debt securities: Amortized cost | 1,586 | 3,836 |
AFS debt securities: Gross unrealized gains | 13 | 7 |
AFS debt securities: Gross unrealized losses | 8 | 22 |
AFS debt securities: Fair value | 1,591 | 3,821 |
Collateralized Loan Obligations | ||
AFS securities | ||
AFS debt securities: Amortized cost | 560 | 540 |
AFS debt securities: Gross unrealized gains | 1 | 0 |
AFS debt securities: Gross unrealized losses | 0 | 1 |
AFS debt securities: Fair value | $ 561 | $ 539 |
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 debt securities: Amortized cost | $ 2,549 | $ 3,387 |
AFS debt securities: Gross unrealized gains | 7 | 5 |
AFS debt securities: Gross unrealized losses | 15 | 61 |
AFS debt securities: Fair value | $ 2,541 | $ 3,331 |
Investment Securities (Investme
Investment Securities (Investment Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Investment securities | ||
Investment securities: Fair Value, Less than 12 Months | $ 54,365 | $ 65,265 |
Investment securities: Fair Value, 12 Months or Longer | 511 | 1,223 |
Investment securities: Fair Value | 54,876 | 66,488 |
Investment securities: Gross Unrealized Loss, Less than 12 Months | 1,097 | 1,441 |
Investment securities: Gross Unrealized Loss, 12 Months or Longer | 13 | 7 |
Investment securities: Gross Unrealized Loss | 1,110 | 1,448 |
U.S. Government and Agency Securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 17,616 | 15,669 |
HTM: Fair Value, 12 Months or Longer | 0 | 0 |
HTM: Fair Value, Total | 17,616 | 15,669 |
HTM: Gross Unrealized Losses, Less than 12 Months | 409 | 471 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
HTM: Gross Unrealized Losses, Total | 409 | 471 |
Corporate and Other Debt | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 91 | |
HTM: Fair Value, 12 Months or Longer | 0 | |
HTM: Fair Value, Total | 91 | |
HTM: Gross Unrealized Losses, Less than 12 Months | 1 | |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | |
HTM: Gross Unrealized Losses, Total | 1 | |
Commercial Mortgage-backed Securities: Non-Agency | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 91 | |
HTM: Fair Value, 12 Months or Longer | 0 | |
HTM: Fair Value, Total | 91 | |
HTM: Gross Unrealized Losses, Less than 12 Months | 1 | |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | |
HTM: Gross Unrealized Losses, Total | 1 | |
AFS Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 36,658 | 49,596 |
AFS: Fair Value, 12 Months or Longer | 511 | 1,223 |
AFS: Fair Value, Total | 37,169 | 50,819 |
AFS: Gross Unrealized Losses, Less than 12 Months | 687 | 970 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 13 | 7 |
AFS: Gross Unrealized Losses, Total | 700 | 977 |
AFS Debt Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 36,658 | 49,590 |
AFS: Fair Value, 12 Months or Longer | 505 | 1,223 |
AFS: Fair Value, Total | 37,163 | 50,813 |
AFS: Gross Unrealized Losses, Less than 12 Months | 687 | 961 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 4 | 7 |
AFS: Gross Unrealized Losses, Total | 691 | 968 |
AFS Debt Securities | U.S. Government and Agency Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 33,053 | 42,083 |
AFS: Fair Value, 12 Months or Longer | 99 | 125 |
AFS: Fair Value, Total | 33,152 | 42,208 |
AFS: Gross Unrealized Losses, Less than 12 Months | 616 | 823 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 1 | 0 |
AFS: Gross Unrealized Losses, Total | 617 | 823 |
AFS Debt Securities | U.S. Treasury Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 21,163 | 25,323 |
AFS: Fair Value, 12 Months or Longer | 0 | 0 |
AFS: Fair Value, Total | 21,163 | 25,323 |
AFS: Gross Unrealized Losses, Less than 12 Months | 417 | 545 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
AFS: Gross Unrealized Losses, Total | 417 | 545 |
AFS Debt Securities | U.S. Agency Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 11,890 | 16,760 |
AFS: Fair Value, 12 Months or Longer | 99 | 125 |
AFS: Fair Value, Total | 11,989 | 16,885 |
AFS: Gross Unrealized Losses, Less than 12 Months | 199 | 278 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 1 | 0 |
AFS: Gross Unrealized Losses, Total | 200 | 278 |
AFS Debt Securities | Corporate and Other Debt | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 3,605 | 7,507 |
AFS: Fair Value, 12 Months or Longer | 406 | 1,098 |
AFS: Fair Value, Total | 4,011 | 8,605 |
AFS: Gross Unrealized Losses, Less than 12 Months | 71 | 138 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 3 | 7 |
AFS: Gross Unrealized Losses, Total | 74 | 145 |
AFS Debt Securities | Commercial Mortgage-backed Securities: Agency | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 1,063 | 1,245 |
AFS: Fair Value, 12 Months or Longer | 0 | 0 |
AFS: Fair Value, Total | 1,063 | 1,245 |
AFS: Gross Unrealized Losses, Less than 12 Months | 42 | 44 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
AFS: Gross Unrealized Losses, Total | 42 | 44 |
AFS Debt Securities | Commercial Mortgage-backed Securities: Non-Agency | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 370 | 763 |
AFS: Fair Value, 12 Months or Longer | 406 | 594 |
AFS: Fair Value, Total | 776 | 1,357 |
AFS: Gross Unrealized Losses, Less than 12 Months | 6 | 11 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 3 | 5 |
AFS: Gross Unrealized Losses, Total | 9 | 16 |
AFS Debt Securities | Auto Loan Asset-backed Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 659 | |
AFS: Fair Value, 12 Months or Longer | 123 | |
AFS: Fair Value, Total | 782 | |
AFS: Gross Unrealized Losses, Less than 12 Months | 1 | |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | |
AFS: Gross Unrealized Losses, Total | 1 | |
AFS Debt Securities | Corporate Bonds | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 592 | 2,050 |
AFS: Fair Value, 12 Months or Longer | 0 | 142 |
AFS: Fair Value, Total | 592 | 2,192 |
AFS: Gross Unrealized Losses, Less than 12 Months | 8 | 21 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 1 |
AFS: Gross Unrealized Losses, Total | 8 | 22 |
AFS Debt Securities | Collateralized Loan Obligations | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 178 | |
AFS: Fair Value, 12 Months or Longer | 239 | |
AFS: Fair Value, Total | 417 | |
AFS: Gross Unrealized Losses, Less than 12 Months | 0 | |
AFS: Gross Unrealized Losses, 12 Months or Longer | 1 | |
AFS: Gross Unrealized Losses, Total | 1 | |
AFS Debt Securities | FFELP Student Loan Asset-backed Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 1,580 | 2,612 |
AFS: Fair Value, 12 Months or Longer | 0 | 0 |
AFS: Fair Value, Total | 1,580 | 2,612 |
AFS: Gross Unrealized Losses, Less than 12 Months | 15 | 61 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
AFS: Gross Unrealized Losses, Total | 15 | 61 |
AFS Equity Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 0 | 6 |
AFS: Fair Value, 12 Months or Longer | 6 | 0 |
AFS: Fair Value, Total | 6 | 6 |
AFS: Gross Unrealized Losses, Less than 12 Months | 0 | 9 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 9 | 0 |
AFS: Gross Unrealized Losses, Total | 9 | 9 |
HTM securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 17,707 | 15,669 |
HTM: Fair Value, 12 Months or Longer | 0 | 0 |
HTM: Fair Value, Total | 17,707 | 15,669 |
HTM: Gross Unrealized Losses, Less than 12 Months | 410 | 471 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
HTM: Gross Unrealized Losses, Total | 410 | 471 |
HTM securities | U.S. Treasury Securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 7,043 | 5,057 |
HTM: Fair Value, 12 Months or Longer | 0 | 0 |
HTM: Fair Value, Total | 7,043 | 5,057 |
HTM: Gross Unrealized Losses, Less than 12 Months | 216 | 283 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
HTM: Gross Unrealized Losses, Total | 216 | 283 |
HTM securities | U.S. Agency Securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 10,573 | 10,612 |
HTM: Fair Value, 12 Months or Longer | 0 | 0 |
HTM: Fair Value, Total | 10,573 | 10,612 |
HTM: Gross Unrealized Losses, Less than 12 Months | 193 | 188 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
HTM: Gross Unrealized Losses, Total | $ 193 | $ 188 |
Investment Securities (Invest65
Investment Securities (Investment Securities by Contractual Maturity) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Amortized Cost | ||
AFS debt securities: Amortized cost, total | $ 51,103 | $ 64,091 |
AFS equity securities: Amortized cost | 15 | 15 |
AFS Securities: Amortized cost, total | 51,118 | 64,106 |
HTM securities: Amortized cost, total | 21,088 | 16,922 |
Investment securities: Amortized cost, total | 72,206 | 81,028 |
Fair Value | ||
AFS debt securities: Fair value, total | 50,482 | 63,164 |
AFS equity securities: Fair value | 6 | 6 |
AFS securities: Fair value, total | 50,488 | 63,170 |
HTM securities: Fair value, total | 20,697 | 16,453 |
Investment securities: Fair value, total | $ 71,185 | 79,623 |
Average Yield | ||
AFS debt securities: Annualized average yield, total | 1.40% | |
AFS equity securities: Annualized average yield | 0.00% | |
AFS securities: Annualized average yield, total | 1.40% | |
HTM securities: Annualized average yield, total | 2.10% | |
Investment securities: Annualized average yield, total | 1.60% | |
U.S. Government and Agency Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, total | $ 43,294 | 50,719 |
HTM securities: Amortized cost, total | 20,964 | |
Fair Value | ||
AFS debt securities: Fair value, total | 42,713 | 49,911 |
HTM securities: Fair value, total | $ 20,574 | |
Average Yield | ||
AFS debt securities: Annualized average yield, total | 1.40% | |
U.S. Treasury Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 3,798 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 13,090 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 4,692 | |
AFS debt securities: Amortized cost, total | 21,580 | 28,371 |
HTM securities: Amortized cost, due within 1 year | 300 | |
HTM securities: Amortized cost, after 1 year through 5 years | 4,837 | |
HTM securities: Amortized cost, after 5 year through 10 years | 2,599 | |
HTM securities: Amortized cost, after 10 years | 727 | |
HTM securities: Amortized cost, total | 8,463 | 5,839 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 3,786 | |
AFS debt securities: Fair value, after 1 year through 5 years | 12,923 | |
AFS debt securities: Fair value, after 5 years through 10 years | 4,454 | |
AFS debt securities: Fair value, total | 21,163 | 27,827 |
HTM securities: Fair value, due within 1 year | 300 | |
HTM securities: Fair value, after 1 year through 5 years | 4,831 | |
HTM securities: Fair value, after 5 years through 10 years | 2,472 | |
HTM securities: Fair value, after 10 years | 653 | |
HTM securities: Fair value, total | $ 8,256 | 5,557 |
Average Yield | ||
AFS debt securities: Annualized average yield, due within 1 year | 0.90% | |
AFS debt securities: Annualized average yield, after 1 year through 5 years | 1.20% | |
AFS debt securities: Annualized average yield, after 5 years through 10 years | 1.40% | |
HTM securities: Annualized average yield, due within 1 year | 0.70% | |
HTM securities: Annualized average yield, after 1 years through 5 years | 1.50% | |
HTM securities: Annualized average yield, after 5 years through 10 years | 1.60% | |
HTM securities: Annualized average yield, after 10 year | 2.30% | |
U.S. Agency Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 539 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 3,696 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 760 | |
AFS debt securities: Amortized cost, after 10 years | 16,719 | |
AFS debt securities: Amortized cost, total | 21,714 | 22,348 |
HTM securities: Amortized cost, after 10 years | 12,501 | |
HTM securities: Amortized cost, total | 12,501 | 11,083 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 539 | |
AFS debt securities: Fair value, after 1 year through 5 years | 3,693 | |
AFS debt securities: Fair value, after 5 years through 10 years | 762 | |
AFS debt securities: Fair value, after 10 years | 16,556 | |
AFS debt securities: Fair value, total | 21,550 | 22,084 |
HTM securities: Fair value, after 10 years | 12,318 | |
HTM securities: Fair value, total | $ 12,318 | 10,896 |
Average Yield | ||
AFS debt securities: Annualized average yield, due within 1 year | 0.30% | |
AFS debt securities: Annualized average yield, after 1 year through 5 years | 0.70% | |
AFS debt securities: Annualized average yield, after 5 years through 10 years | 2.00% | |
AFS debt securities: Annualized average yield, after 10 years | 1.80% | |
HTM securities: Annualized average yield, after 10 year | 2.40% | |
Corporate and Other Debt | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, total | $ 7,809 | 13,372 |
HTM securities: Amortized cost, total | 124 | |
Fair Value | ||
AFS debt securities: Fair value, total | 7,769 | 13,253 |
HTM securities: Fair value, total | $ 123 | |
Average Yield | ||
AFS debt securities: Annualized average yield, total | 1.60% | |
Commercial Mortgage-backed Securities: Agency | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 49 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 241 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 383 | |
AFS debt securities: Amortized cost, after 10 years | 863 | |
AFS debt securities: Amortized cost, total | 1,536 | 1,850 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 49 | |
AFS debt securities: Fair value, after 1 year through 5 years | 240 | |
AFS debt securities: Fair value, after 5 years through 10 years | 385 | |
AFS debt securities: Fair value, after 10 years | 822 | |
AFS debt securities: Fair value, total | $ 1,496 | 1,808 |
Average Yield | ||
AFS debt securities: Annualized average yield, due within 1 year | 1.10% | |
AFS debt securities: Annualized average yield, after 1 year through 5 years | 1.50% | |
AFS debt securities: Annualized average yield, after 5 years through 10 years | 1.20% | |
AFS debt securities: Annualized average yield, after 10 years | 1.60% | |
Commercial Mortgage-backed Securities: Non-Agency | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, after 5 years through 10 years | $ 36 | |
AFS debt securities: Amortized cost, after 10 years | 1,542 | |
AFS debt securities: Amortized cost, total | 1,578 | 2,250 |
HTM securities: Amortized cost, after 1 year through 5 years | 41 | |
HTM securities: Amortized cost, after 5 year through 10 years | 83 | |
HTM securities: Amortized cost, total | 124 | |
Fair Value | ||
AFS debt securities: Fair value, after 5 years through 10 years | 35 | |
AFS debt securities: Fair value, after 10 years | 1,545 | |
AFS debt securities: Fair value, total | 1,580 | 2,245 |
HTM securities: Fair value, after 1 year through 5 years | 41 | |
HTM securities: Fair value, after 5 years through 10 years | 82 | |
HTM securities: Fair value, total | $ 123 | |
Average Yield | ||
AFS debt securities: Annualized average yield, after 5 years through 10 years | 2.50% | |
AFS debt securities: Annualized average yield, after 10 years | 2.10% | |
HTM securities: Annualized average yield, after 1 years through 5 years | 3.70% | |
HTM securities: Annualized average yield, after 5 years through 10 years | 3.80% | |
Auto Loan Asset-backed Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 0 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 0 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 0 | |
AFS debt securities: Amortized cost, total | 0 | 1,509 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 0 | |
AFS debt securities: Fair value, after 1 year through 5 years | 0 | |
AFS debt securities: Fair value, after 5 years through 10 years | 0 | |
AFS debt securities: Fair value, total | $ 0 | 1,509 |
Average Yield | ||
AFS debt securities: Annualized average yield, due within 1 year | 0.00% | |
AFS debt securities: Annualized average yield, after 1 year through 5 years | 0.00% | |
AFS debt securities: Annualized average yield, after 5 years through 10 years | 0.00% | |
Corporate Bonds | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 36 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 1,219 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 331 | |
AFS debt securities: Amortized cost, total | 1,586 | 3,836 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 36 | |
AFS debt securities: Fair value, after 1 year through 5 years | 1,225 | |
AFS debt securities: Fair value, after 5 years through 10 years | 330 | |
AFS debt securities: Fair value, total | $ 1,591 | 3,821 |
Average Yield | ||
AFS debt securities: Annualized average yield, due within 1 year | 1.20% | |
AFS debt securities: Annualized average yield, after 1 year through 5 years | 2.40% | |
AFS debt securities: Annualized average yield, after 5 years through 10 years | 2.40% | |
Collateralized Loan Obligations | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, after 5 years through 10 years | $ 362 | |
AFS debt securities: Amortized cost, after 10 years | 198 | |
AFS debt securities: Amortized cost, total | 560 | 540 |
Fair Value | ||
AFS debt securities: Fair value, after 5 years through 10 years | 362 | |
AFS debt securities: Fair value, after 10 years | 199 | |
AFS debt securities: Fair value, total | $ 561 | 539 |
Average Yield | ||
AFS debt securities: Annualized average yield, after 5 years through 10 years | 1.50% | |
AFS debt securities: Annualized average yield, after 10 years | 2.40% | |
FFELP Student Loan Asset-backed Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, after 1 year through 5 years | $ 57 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 536 | |
AFS debt securities: Amortized cost, after 10 years | 1,956 | |
AFS debt securities: Amortized cost, total | 2,549 | 3,387 |
Fair Value | ||
AFS debt securities: Fair value, after 1 year through 5 years | 56 | |
AFS debt securities: Fair value, after 5 years through 10 years | 532 | |
AFS debt securities: Fair value, after 10 years | 1,953 | |
AFS debt securities: Fair value, total | $ 2,541 | $ 3,331 |
Average Yield | ||
AFS debt securities: Annualized average yield, after 1 year through 5 years | 0.80% | |
AFS debt securities: Annualized average yield, after 5 years through 10 years | 0.80% | |
AFS debt securities: Annualized average yield, after 10 years | 1.10% |
Investment Securities (Gross Re
Investment Securities (Gross Realized Gains and Losses on Sales of AFS Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Available-for-sale Securities [Abstract] | ||||
Gross realized gains | $ 23 | $ 71 | $ 27 | $ 85 |
Gross realized (losses) | (9) | (1) | (11) | (3) |
Total | $ 14 | $ 70 | $ 16 | $ 82 |
Collateralized Transactions (Of
Collateralized Transactions (Offsetting of Certain Collateralized Transactions) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Securities Purchased under Agreements to Resell | ||
Gross amount | $ 161,364 | $ 182,888 |
Amounts offset | (63,956) | (80,933) |
Net amount presented | 97,408 | 101,955 |
Amounts not offset | (89,731) | (93,365) |
Net amounts | 7,677 | 8,590 |
Securities Borrowed | ||
Gross amount | 140,136 | 129,934 |
Amounts offset | (13,414) | (4,698) |
Net amount presented | 126,722 | 125,236 |
Amounts not offset | (121,668) | (118,974) |
Net amounts | 5,054 | 6,262 |
Securities Sold under Agreements to Repurchase | ||
Gross amount | 114,653 | 135,561 |
Amounts offset | (63,956) | (80,933) |
Net amount presented | 50,697 | 54,628 |
Amounts not offset | (44,980) | (47,933) |
Net amounts | 5,717 | 6,695 |
Securities Loaned | ||
Gross amount | 30,276 | 20,542 |
Amounts offset | (13,414) | (4,698) |
Net amount presented | 16,862 | 15,844 |
Amounts not offset | (16,632) | (15,670) |
Net amounts | 230 | 174 |
Collateralized Transactions Not Subject to Legally Enforceable Master Netting Agreements [Abstract] | ||
Securities purchased under agreements to resell | 7,010 | 7,765 |
Securities borrowed | 1,224 | 2,591 |
Securities sold under agreements to repurchase | 5,222 | 6,500 |
Securities loaned | $ 183 | $ 154 |
Collateralized Transactions (Gr
Collateralized Transactions (Gross Secured Financing Balances) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | $ 114,653 | $ 135,561 |
Securities loaned | 30,276 | 20,542 |
Gross amount of secured financing included in the offseting disclosure | 144,929 | 156,103 |
Trading liabilities: Obligation to return securities received as collateral | 21,481 | 20,262 |
Total | 166,410 | 176,365 |
U.S. Government and Agency Securities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 28,512 | 56,372 |
State and Municipal Securities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 157 | 1,363 |
Other Sovereign Government Obligations | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 51,498 | 42,790 |
Securities loaned | 13,599 | 4,762 |
Asset-backed Securities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 1,549 | 1,918 |
Corporate and Other Debt | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 5,083 | 9,086 |
Securities loaned | 124 | 73 |
Corporate Equities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 26,599 | 23,152 |
Securities loaned | 16,375 | 15,693 |
Trading liabilities: Obligation to return securities received as collateral | 21,472 | 20,247 |
Other | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 1,255 | 880 |
Securities loaned | 178 | 14 |
Trading liabilities: Obligation to return securities received as collateral | 9 | 15 |
Overnight and Open | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 29,403 | 41,549 |
Securities loaned | 16,447 | 9,487 |
Gross amount of secured financing included in the offseting disclosure | 45,850 | 51,036 |
Trading liabilities: Obligation to return securities received as collateral | 21,481 | 20,262 |
Total | 67,331 | 71,298 |
Less than 30 days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 26,884 | 36,703 |
Securities loaned | 1,656 | 851 |
Gross amount of secured financing included in the offseting disclosure | 28,540 | 37,554 |
Trading liabilities: Obligation to return securities received as collateral | 0 | 0 |
Total | 28,540 | 37,554 |
30-90 days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 18,896 | 24,648 |
Securities loaned | 1,833 | 2,863 |
Gross amount of secured financing included in the offseting disclosure | 20,729 | 27,511 |
Trading liabilities: Obligation to return securities received as collateral | 0 | 0 |
Total | 20,729 | 27,511 |
Over 90 days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 39,470 | 32,661 |
Securities loaned | 10,340 | 7,341 |
Gross amount of secured financing included in the offseting disclosure | 49,810 | 40,002 |
Trading liabilities: Obligation to return securities received as collateral | 0 | 0 |
Total | $ 49,810 | $ 40,002 |
Collateralized Transactions (Tr
Collateralized Transactions (Trading Assets Pledged) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Collateralized Transactions | ||
Carrying value of trading assets loaned or pledged | $ 42,053 | $ 41,358 |
Carrying value of loans pledged (gross of allowance for loan losses) | 3,876 | 0 |
Total | $ 45,929 | $ 41,358 |
Collateralized Transactions (Co
Collateralized Transactions (Collateral with Rights to Sell or Repledge) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Collateralized Transactions | ||
Collateral with rights to sell or repledge | $ 556,203 | $ 561,239 |
Collateral that was sold or repledged | $ 429,029 | $ 430,911 |
Collateralized Transactions (Cu
Collateralized Transactions (Customer Margin Lending) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Collateralized Transactions | ||
Net customer receivables representing margin loans | $ 27,744 | $ 24,359 |
Collateralized Transactions (Ca
Collateralized Transactions (Cash and Securities Deposited with Clearing Organizations or Segregated) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Collateralized Transactions | ||
Segregated securities | $ 20,351 | $ 23,756 |
Other assets | 30,171 | 33,979 |
Total | $ 50,522 | $ 57,735 |
Loans and Allowance for Credi73
Loans and Allowance for Credit Losses (Loans Held for Investment and Held for Sale) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Loans Held for Investment | ||||
Loans held for investment, gross | $ 87,313 | $ 81,978 | $ 77,606 | |
Allowance for loan losses | (306) | (274) | ||
Loans held for investment, net | 87,007 | 81,704 | ||
Loans Held for Sale | ||||
Loans held for sale, gross | 10,632 | 12,544 | ||
Loans held for sale, net | 10,632 | 12,544 | ||
Total Loans | ||||
Total loans, gross | 97,945 | 94,522 | ||
Allowance for loan losses | (306) | (274) | (323) | $ (225) |
Total loans, net | 97,639 | 94,248 | ||
Loans at fixed interest rates | 12,696 | 11,895 | ||
Loans at floating or adjustable interest rates | 84,943 | 82,353 | ||
Non-U.S. | ||||
Total Loans | ||||
Total loans, net | 8,725 | 9,388 | ||
Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 85,245 | 79,901 | ||
Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 611 | 519 | ||
Substandard | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 1,388 | 1,489 | ||
Doubtful | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 69 | 69 | ||
Loss | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Corporate | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 26,831 | 25,025 | 24,186 | |
Loans Held for Sale | ||||
Loans held for sale, gross | 9,394 | 10,710 | ||
Total Loans | ||||
Total loans, gross | 36,225 | 35,735 | ||
Allowance for loan losses | (211) | (195) | (252) | (166) |
Corporate | Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 25,321 | 23,409 | ||
Corporate | Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 416 | 288 | ||
Corporate | Substandard | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 1,025 | 1,259 | ||
Corporate | Doubtful | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 69 | 69 | ||
Corporate | Loss | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Consumer | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 26,354 | 24,866 | 23,337 | |
Loans Held for Sale | ||||
Loans held for sale, gross | 0 | 0 | ||
Total Loans | ||||
Total loans, gross | 26,354 | 24,866 | ||
Allowance for loan losses | (4) | (4) | (4) | (5) |
Consumer | Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 26,351 | 24,853 | ||
Consumer | Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 3 | 13 | ||
Consumer | Substandard | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Consumer | Doubtful | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Consumer | Loss | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Residential Real Estate | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 25,646 | 24,385 | 22,668 | |
Loans Held for Sale | ||||
Loans held for sale, gross | 60 | 61 | ||
Total Loans | ||||
Total loans, gross | 25,706 | 24,446 | ||
Allowance for loan losses | (21) | (20) | (18) | (17) |
Residential Real Estate | Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 25,598 | 24,345 | ||
Residential Real Estate | Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Residential Real Estate | Substandard | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 48 | 40 | ||
Residential Real Estate | Doubtful | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Residential Real Estate | Loss | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Wholesale Real Estate | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 8,482 | 7,702 | 7,415 | |
Loans Held for Sale | ||||
Loans held for sale, gross | 1,178 | 1,773 | ||
Total Loans | ||||
Total loans, gross | 9,660 | 9,475 | ||
Allowance for loan losses | (70) | (55) | $ (49) | $ (37) |
Wholesale Real Estate | Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 7,975 | 7,294 | ||
Wholesale Real Estate | Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 192 | 218 | ||
Wholesale Real Estate | Substandard | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 315 | 190 | ||
Wholesale Real Estate | Doubtful | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Wholesale Real Estate | Loss | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | $ 0 | $ 0 |
Loans and Allowance for Credi74
Loans and Allowance for Credit Losses (Impaired Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Impaired Loans | ||||
Impaired loans with allowance | $ 141 | $ 104 | ||
Impaired loans without allowance | 157 | 241 | ||
Impaired loans unpaid principal balance | 309 | 354 | ||
Impaired loans | 298 | 345 | ||
Allowance for loan losses | 306 | 274 | $ 323 | $ 225 |
Americas | ||||
Impaired Loans | ||||
Impaired loans | 279 | 320 | ||
Allowance for loan losses | 274 | 245 | ||
EMEA | ||||
Impaired Loans | ||||
Impaired loans | 9 | 9 | ||
Allowance for loan losses | 30 | 28 | ||
Asia-Pacific | ||||
Impaired Loans | ||||
Impaired loans | 10 | 16 | ||
Allowance for loan losses | 2 | 1 | ||
Corporate | ||||
Impaired Loans | ||||
Impaired loans with allowance | 141 | 104 | ||
Impaired loans without allowance | 122 | 206 | ||
Impaired loans unpaid principal balance | 273 | 316 | ||
Allowance for loan losses | 211 | 195 | 252 | 166 |
Residential Real Estate | ||||
Impaired Loans | ||||
Impaired loans with allowance | 0 | 0 | ||
Impaired loans without allowance | 35 | 35 | ||
Impaired loans unpaid principal balance | 36 | 38 | ||
Allowance for loan losses | $ 21 | $ 20 | $ 18 | $ 17 |
Loans and Allowance for Credi75
Loans and Allowance for Credit Losses (Loans and Lending Commitments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Allowance for loan losses rollforward | |||||
Beginning balance | $ 274 | $ 225 | |||
Recoveries | 1 | ||||
Provision for (release of) loan losses | $ 7 | $ 16 | 29 | 128 | |
Other | 2 | (30) | |||
Ending balance | 306 | 323 | 306 | 323 | |
Loans, additional information | |||||
Allowance, inherent | 237 | 218 | 237 | 218 | |
Allowance, specific | 69 | 105 | 69 | 105 | |
Loans, inherent | 87,015 | 76,994 | 87,015 | 76,994 | |
Loans, specific | 298 | 612 | 298 | 612 | |
Total loans | 87,313 | 77,606 | 87,313 | 77,606 | $ 81,978 |
Allowance for lending commitments rollforward | |||||
Beginning balance | 190 | 185 | |||
Provision for (release of) lending commitments | (7) | (13) | (4) | 3 | |
Other | 0 | (1) | |||
Ending balance | 186 | 187 | 186 | 187 | |
Lending commitments, additional information | |||||
Allowance, inherent | 183 | 179 | 183 | 179 | |
Allowance, specific | 3 | 8 | 3 | 8 | |
Lending commitments, inherent | 69,099 | 69,207 | 69,099 | 69,207 | |
Lending commitments, specific | 229 | 64 | 229 | 64 | |
Total lending commitments | 69,328 | 69,271 | 69,328 | 69,271 | |
Corporate | |||||
Allowance for loan losses rollforward | |||||
Beginning balance | 195 | 166 | |||
Recoveries | 1 | ||||
Provision for (release of) loan losses | 14 | 116 | |||
Other | 1 | (30) | |||
Ending balance | 211 | 252 | 211 | 252 | |
Loans, additional information | |||||
Allowance, inherent | 142 | 147 | 142 | 147 | |
Allowance, specific | 69 | 105 | 69 | 105 | |
Loans, inherent | 26,568 | 23,604 | 26,568 | 23,604 | |
Loans, specific | 263 | 582 | 263 | 582 | |
Total loans | 26,831 | 24,186 | 26,831 | 24,186 | 25,025 |
Allowance for lending commitments rollforward | |||||
Beginning balance | 185 | 180 | |||
Provision for (release of) lending commitments | (3) | 1 | |||
Other | 0 | 0 | |||
Ending balance | 182 | 181 | 182 | 181 | |
Lending commitments, additional information | |||||
Allowance, inherent | 179 | 173 | 179 | 173 | |
Allowance, specific | 3 | 8 | 3 | 8 | |
Lending commitments, inherent | 62,339 | 63,120 | 62,339 | 63,120 | |
Lending commitments, specific | 229 | 64 | 229 | 64 | |
Total lending commitments | 62,568 | 63,184 | 62,568 | 63,184 | |
Consumer | |||||
Allowance for loan losses rollforward | |||||
Beginning balance | 4 | 5 | |||
Recoveries | 0 | ||||
Provision for (release of) loan losses | 0 | (1) | |||
Other | 0 | 0 | |||
Ending balance | 4 | 4 | 4 | 4 | |
Loans, additional information | |||||
Allowance, inherent | 4 | 4 | 4 | 4 | |
Allowance, specific | 0 | 0 | 0 | 0 | |
Loans, inherent | 26,354 | 23,337 | 26,354 | 23,337 | |
Loans, specific | 0 | 0 | 0 | 0 | |
Total loans | 26,354 | 23,337 | 26,354 | 23,337 | 24,866 |
Allowance for lending commitments rollforward | |||||
Beginning balance | 1 | 1 | |||
Provision for (release of) lending commitments | 0 | 0 | |||
Other | 0 | (1) | |||
Ending balance | 1 | 0 | 1 | 0 | |
Lending commitments, additional information | |||||
Allowance, inherent | 1 | 0 | 1 | 0 | |
Allowance, specific | 0 | 0 | 0 | 0 | |
Lending commitments, inherent | 6,005 | 5,264 | 6,005 | 5,264 | |
Lending commitments, specific | 0 | 0 | 0 | 0 | |
Total lending commitments | 6,005 | 5,264 | 6,005 | 5,264 | |
Residential Real Estate | |||||
Allowance for loan losses rollforward | |||||
Beginning balance | 20 | 17 | |||
Recoveries | 0 | ||||
Provision for (release of) loan losses | 1 | 1 | |||
Other | 0 | 0 | |||
Ending balance | 21 | 18 | 21 | 18 | |
Loans, additional information | |||||
Allowance, inherent | 21 | 18 | 21 | 18 | |
Allowance, specific | 0 | 0 | 0 | 0 | |
Loans, inherent | 25,611 | 22,638 | 25,611 | 22,638 | |
Loans, specific | 35 | 30 | 35 | 30 | |
Total loans | 25,646 | 22,668 | 25,646 | 22,668 | 24,385 |
Allowance for lending commitments rollforward | |||||
Beginning balance | 0 | 0 | |||
Provision for (release of) lending commitments | 0 | 0 | |||
Other | 0 | 0 | |||
Ending balance | 0 | 0 | 0 | 0 | |
Lending commitments, additional information | |||||
Allowance, inherent | 0 | 0 | 0 | 0 | |
Allowance, specific | 0 | 0 | 0 | 0 | |
Lending commitments, inherent | 346 | 327 | 346 | 327 | |
Lending commitments, specific | 0 | 0 | 0 | 0 | |
Total lending commitments | 346 | 327 | 346 | 327 | |
Wholesale Real Estate | |||||
Allowance for loan losses rollforward | |||||
Beginning balance | 55 | 37 | |||
Recoveries | 0 | ||||
Provision for (release of) loan losses | 14 | 12 | |||
Other | 1 | 0 | |||
Ending balance | 70 | 49 | 70 | 49 | |
Loans, additional information | |||||
Allowance, inherent | 70 | 49 | 70 | 49 | |
Allowance, specific | 0 | 0 | 0 | 0 | |
Loans, inherent | 8,482 | 7,415 | 8,482 | 7,415 | |
Loans, specific | 0 | 0 | 0 | 0 | |
Total loans | 8,482 | 7,415 | 8,482 | 7,415 | $ 7,702 |
Allowance for lending commitments rollforward | |||||
Beginning balance | 4 | 4 | |||
Provision for (release of) lending commitments | (1) | 2 | |||
Other | 0 | 0 | |||
Ending balance | 3 | 6 | 3 | 6 | |
Lending commitments, additional information | |||||
Allowance, inherent | 3 | 6 | 3 | 6 | |
Allowance, specific | 0 | 0 | 0 | 0 | |
Lending commitments, inherent | 409 | 496 | 409 | 496 | |
Lending commitments, specific | 0 | 0 | 0 | 0 | |
Total lending commitments | $ 409 | $ 496 | $ 409 | $ 496 |
Loans and Allowance for Credi76
Loans and Allowance for Credit Losses (TDR) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Troubled Debt Restructurings | ||
Allowance for loan losses | $ 8 | $ 0 |
Loans | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings | 58 | 67 |
Lending Commitments | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings | $ 21 | $ 14 |
Loans and Allowance for Credi77
Loans and Allowance for Credit Losses (Employee Loans) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Employee Loans | ||
Balance | $ 4,323 | $ 4,804 |
Allowance for loan losses | (83) | (89) |
Balance, net | $ 4,240 | $ 4,715 |
Minimum | ||
Employee Loans | ||
Employee loan repayment terms | 1 year | |
Maximum | ||
Employee Loans | ||
Employee loan repayment terms | 20 years |
Equity Method Investments (Over
Equity Method Investments (Overview) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures | |||||
Equity method investments | $ 2,760 | $ 2,760 | $ 2,837 | ||
Income (loss) from equity method investments | $ (9) | $ (14) | $ 0 | $ 1 |
Equity Method Investments (Inve
Equity Method Investments (Investees) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Equity Method Investments | ||||
Income (loss) from equity method investments | $ (9) | $ (14) | $ 0 | $ 1 |
MUMSS | ||||
Equity Method Investments | ||||
Voting interest | 40.00% | 40.00% | ||
Income (loss) from equity method investments | $ 23 | $ 23 | $ 71 | $ 57 |
MUFG | MUMSS | ||||
Equity Method Investments | ||||
Voting interest | 60.00% | 60.00% |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Savings and demand deposits | $ 141,087 | $ 154,559 |
Time deposits | 3,826 | 1,304 |
Total deposits | 144,913 | 155,863 |
Deposits subject to FDIC insurance | 120,991 | 127,992 |
Time Deposits that equal or exceed the FDIC insurance limit | 2 | $ 46 |
Interest Bearing Deposit Maturities | ||
Demand | 141,047 | |
Interest bearing time deposits maturing in 2017 | 2,925 | |
Interest bearing time deposits maturing in 2018 | 672 | |
Interest bearing time deposits maturing in 2019 | 105 | |
Interest bearing time deposits maturing in 2021 | 8 | |
Interest bearing time deposits maturing thereafter | $ 116 |
Long-Term Borrowings and Othe81
Long-Term Borrowings and Other Secured Financings (Long-term Borrowings by Type) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Long-term Borrowings by Type | ||
Senior debt | $ 173,761 | $ 154,472 |
Subordinated debt | 10,351 | 10,303 |
Total | $ 184,112 | $ 164,775 |
Weighted average maturity of long-term borrowings | 6 years 6 months | 5 years 11 months |
Long-Term Borrowings and Othe82
Long-Term Borrowings and Other Secured Financings (Other Secured Financings by Type) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Long-term Borrowings | ||
Secured financings with original maturities greater than one year | $ 11,005 | $ 9,404 |
Secured financings with original maturities one year or less | 4,996 | 1,429 |
Failed sales | 641 | 285 |
Total other secured financings | $ 16,642 | $ 11,118 |
Commitments, Guarantees and C83
Commitments, Guarantees and Contingencies (Commitments) (Details) $ in Millions | Jun. 30, 2017USD ($) |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | $ 91,515 |
1-3 (years) | 28,910 |
3-5 (years) | 45,302 |
Over 5 (years) | 4,415 |
Total | 170,142 |
Forward-starting Secured Financing Receivables | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 70,023 |
1-3 (years) | 0 |
3-5 (years) | 0 |
Over 5 (years) | 0 |
Total | 70,023 |
Commitments due in the next three business days | 59,800 |
Underwriting | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 1,024 |
1-3 (years) | 0 |
3-5 (years) | 0 |
Over 5 (years) | 0 |
Total | 1,024 |
Investment Activities | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 569 |
1-3 (years) | 197 |
3-5 (years) | 22 |
Over 5 (years) | 259 |
Total | 1,047 |
Letters of Credit and Other Financial Guarantees | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 156 |
1-3 (years) | 1 |
3-5 (years) | 1 |
Over 5 (years) | 41 |
Total | 199 |
Lending Commitments | Corporate Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 13,478 |
1-3 (years) | 28,417 |
3-5 (years) | 45,187 |
Over 5 (years) | 3,806 |
Total | 90,888 |
Commitments participated to third parties | 6,200 |
Lending Commitments | Consumer Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 5,998 |
1-3 (years) | 4 |
3-5 (years) | 0 |
Over 5 (years) | 4 |
Total | 6,006 |
Lending Commitments | Residential Real Estate Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 35 |
1-3 (years) | 25 |
3-5 (years) | 84 |
Over 5 (years) | 238 |
Total | 382 |
Lending Commitments | Wholesale Real Estate Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 232 |
1-3 (years) | 266 |
3-5 (years) | 8 |
Over 5 (years) | 67 |
Total | $ 573 |
Commitments, Guarantees and C84
Commitments, Guarantees and Contingencies (Obligations under Guarantee Arrangements) (Details) $ in Millions | Jun. 30, 2017USD ($) |
Credit Derivatives | |
Guarantees | |
Maximum potential payout/notional | $ 350,816 |
Carrying amount: (asset) | (1,730) |
Collateral/recourse | 0 |
Credit Derivatives | Less than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 133,654 |
Credit Derivatives | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 92,988 |
Credit Derivatives | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 96,431 |
Credit Derivatives | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 27,743 |
Other Credit Contracts | |
Guarantees | |
Maximum potential payout/notional | 169 |
Carrying amount: liability | 4 |
Collateral/recourse | 0 |
Other Credit Contracts | Less than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 27 |
Other Credit Contracts | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Other Credit Contracts | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 13 |
Other Credit Contracts | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 129 |
Non-credit Derivatives | |
Guarantees | |
Maximum potential payout/notional | 3,382,889 |
Carrying amount: liability | 45,076 |
Collateral/recourse | 0 |
Non-credit Derivatives | Less than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 1,560,514 |
Non-credit Derivatives | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 918,800 |
Non-credit Derivatives | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 331,073 |
Non-credit Derivatives | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 572,502 |
Standby Letters of Credit and Other Financial Guarantees Issued | |
Guarantees | |
Maximum potential payout/notional | 7,935 |
Carrying amount: (asset) | (186) |
Collateral/recourse | 6,560 |
Standby letters of credit | 700 |
Standby Letters of Credit and Other Financial Guarantees Issued | Less than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 779 |
Standby Letters of Credit and Other Financial Guarantees Issued | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 856 |
Standby Letters of Credit and Other Financial Guarantees Issued | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 1,147 |
Standby Letters of Credit and Other Financial Guarantees Issued | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 5,153 |
Market Value Guarantees | |
Guarantees | |
Maximum potential payout/notional | 174 |
Carrying amount: liability | 1 |
Collateral/recourse | 4 |
Market Value Guarantees | Less than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 39 |
Market Value Guarantees | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 65 |
Market Value Guarantees | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 70 |
Market Value Guarantees | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Liquidity Facilities | |
Guarantees | |
Maximum potential payout/notional | 3,229 |
Carrying amount: (asset) | (5) |
Collateral/recourse | 5,503 |
Liquidity Facilities | Less than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 3,229 |
Liquidity Facilities | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Liquidity Facilities | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Liquidity Facilities | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Whole Loan Sales Guarantees | |
Guarantees | |
Maximum potential payout/notional | 23,280 |
Carrying amount: liability | 8 |
Collateral/recourse | 0 |
Whole Loan Sales Guarantees | Less than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Whole Loan Sales Guarantees | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Whole Loan Sales Guarantees | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 2 |
Whole Loan Sales Guarantees | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 23,278 |
Securitizations Representations and Warranties | |
Guarantees | |
Maximum potential payout/notional | 57,547 |
Carrying amount: liability | 90 |
Collateral/recourse | 0 |
Securitizations Representations and Warranties | Less than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Securitizations Representations and Warranties | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Securitizations Representations and Warranties | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Securitizations Representations and Warranties | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 57,547 |
General Partner Guarantees | |
Guarantees | |
Maximum potential payout/notional | 404 |
Carrying amount: liability | 44 |
Collateral/recourse | 0 |
General Partner Guarantees | Less than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 34 |
General Partner Guarantees | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 44 |
General Partner Guarantees | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 313 |
General Partner Guarantees | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | $ 13 |
Commitments, Guarantees and C85
Commitments, Guarantees and Contingencies (Contingencies) (Details) - 6 months ended Jun. 30, 2017 - Pending Litigation € in Millions, $ in Millions | EUR (€) | USD ($) |
China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. | ||
Loss Contingencies | ||
Lawsuit filing date | Jul. 15, 2010 | |
Name of plaintiff | China Development Industrial Bank (“CDIB”) | |
Name of defendant | the Firm | |
Domicile of litigation | Supreme Court of NY | |
Allegations | 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. | |
Damages sought | The complaint seeks compensatory damages related to the approximately $228 million that CDIB alleges it has already lost under the credit default swap, rescission of CDIB’s obligation to pay an additional $12 million, punitive damages, equitable relief, fees and costs. | |
China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | $ 240 | |
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. | ||
Loss Contingencies | ||
Lawsuit filing date | Aug. 8, 2012 | |
Name of plaintiff | U.S. Bank | |
Name of defendant | the Firm | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | 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. | |
Damages sought | The complaint seeks, among other relief, rescission of the mortgage loan purchase agreements underlying the transactions, specific performance and unspecified damages and interest. | |
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. | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | 527 | |
Deutsche Zentral-Genossenschaftsbank AG et al. v. Morgan Stanley et al. | ||
Loss Contingencies | ||
Lawsuit filing date | May 3, 2013 | |
Name of defendant | the Firm, certain affiliates, and other defendants | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | The complaint alleges that defendants made material misrepresentations and omissions in the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Firm to plaintiff 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 | |
Damages sought | seeks, among other things, compensatory and punitive damages. | |
Request for information | On July 28, 2017, the Firm filed a motion for leave to appeal that decision to the New York Court of Appeals. At March 25, 2017, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $237 million, and the certificates had incurred actual losses of approximately $87 million. | |
US 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 Funding, Inc. | ||
Loss Contingencies | ||
Lawsuit filing date | Jul. 8, 2013 | |
Name of plaintiff | U.S. Bank National Association | |
Name of defendant | the Firm | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | 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 $650 million, breached various representations and warranties. | |
Damages sought | The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, unspecified damages and interest. | |
US 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 Funding, Inc. | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | 240 | |
Wilmington Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC et al. | ||
Loss Contingencies | ||
Lawsuit filing date | Dec. 30, 2013 | |
Name of plaintiff | Wilmington Trust Company | |
Name of defendant | the Firm | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | 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. | |
Damages sought | The complaint seeks, among other relief, unspecified damages, attorneys’ fees, interest and costs. | |
Wilmington Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC et al. | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | 152 | |
Deutsche Bank National Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC | ||
Loss Contingencies | ||
Lawsuit filing date | Apr. 28, 2014 | |
Name of plaintiff | Deutsche Bank National Trust Company | |
Name of defendant | the Firm | |
Domicile of litigation | the United States District Court for the Southern District of New York | |
Allegations | 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 $735 million, breached various representations and warranties. | |
Damages sought | 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. | |
Deutsche Bank National Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | 292 | |
Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. (NIMS 2007-1) | ||
Loss Contingencies | ||
Lawsuit filing date | Sep. 19, 2014 | |
Name of plaintiff | Financial Guaranty Insurance Company (“FGIC”) | |
Name of defendant | the Firm | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | The complaint asserts claims for breach of contract and alleges, among other things, that the net interest margin securities (“NIMS”) in the trust breached various representations and warranties. FGIC issued a financial guaranty policy with respect to certain notes that had an original balance of approximately $475 million. | |
Damages sought | The complaint seeks, among other relief, specific performance of the NIMS breach remedy procedures in the transaction documents, unspecified damages, reimbursement of certain payments made pursuant to the transaction documents, attorneys’ fees and interest. | |
Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. (NIMS 2007-1) | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | 126 | |
Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. (Trust 2007-NC4) | ||
Loss Contingencies | ||
Lawsuit filing date | Sep. 23, 2014 | |
Name of plaintiff | FGIC | |
Name of defendant | the Firm | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | The complaint asserts claims for breach of contract and fraudulent inducement and alleges, among other things, that the loans in the trust breached various representations and warranties and defendants made untrue statements and material omissions to induce FGIC to issue a financial guaranty policy on certain classes of certificates that had an original balance of approximately $876 million. | |
Damages sought | The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, compensatory, consequential and punitive damages, attorneys’ fees and interest. | |
Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. (Trust 2007-NC4) | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | 277 | |
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. | ||
Loss Contingencies | ||
Lawsuit filing date | Jan. 23, 2015 | |
Name of plaintiff | Deutsche Bank National Trust Company | |
Name of defendant | the Firm | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | 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 $1.05 billion, breached various representations and warranties. | |
Damages sought | The complaint seeks, among other relief, 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. | |
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. | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | $ 277 | |
Case Number 15/3637 and Case Number 15/4353 | ||
Loss Contingencies | ||
Name of plaintiff | the Dutch Tax Authority (“Dutch Authority”) | |
Name of defendant | the Firm | |
Domicile of litigation | the Dutch Tax Tribunal in Amsterdam | |
Allegations | the prior set-off by the Firm of approximately €124 million (plus accrued interest) of withholding tax credits against the Firm’s corporation tax liabilities for the tax years 2007 to 2013. The Dutch Authority alleges that the Firm was not entitled to receive the withholding tax credits on the basis, inter alia, that a Firm subsidiary did not hold legal title to certain securities subject to withholding tax on the relevant dates. The Dutch Authority has also alleged that the Firm failed to provide certain information to the Dutch Authority and keep adequate books and records. | |
Case Number 15/3637 and Case Number 15/4353 | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | € | € 124 |
Variable Interest Entities an86
Variable Interest Entities and Securitization Activities (Consolidated VIEs) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity | ||
VIE assets | $ 1,824 | $ 2,410 |
VIE liabilities | 285 | 318 |
Credit-linked Notes | ||
Variable Interest Entity | ||
VIE assets | 200 | 501 |
VIE liabilities | 0 | 0 |
Other Structured Financings | ||
Variable Interest Entity | ||
VIE assets | 426 | 602 |
VIE liabilities | 5 | 10 |
Asset-backed Securitizations | ||
Variable Interest Entity | ||
VIE assets | 34 | 397 |
VIE liabilities | 22 | 283 |
Other | ||
Variable Interest Entity | ||
VIE assets | 1,164 | 910 |
VIE liabilities | $ 258 | $ 25 |
Variable Interest Entities an87
Variable Interest Entities and Securitization Activities (Assets and Liabilities by Balance Sheet Caption) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Assets | |||
Cash and due from banks | $ 25,008 | $ 22,017 | $ 27,597 |
Trading assets at fair value | 290,802 | 262,154 | |
Customer and other receivables | 54,917 | 46,460 | |
Goodwill | 6,591 | 6,577 | |
Intangible assets | 2,567 | 2,721 | |
Other assets | 48,135 | 52,125 | |
Assets | 841,016 | 814,949 | |
Liabilities | |||
Other secured financings at fair value | 5,731 | 5,041 | |
Other liabilities and accrued expenses | 15,042 | 15,896 | |
Liabilities | 761,049 | 737,772 | |
Noncontrolling interests | 1,141 | 1,127 | |
Consolidated VIEs | |||
Assets | |||
Cash and due from banks | 87 | 74 | |
Trading assets at fair value | 785 | 1,295 | |
Customer and other receivables | 12 | 13 | |
Goodwill | 18 | 18 | |
Intangible assets | 166 | 177 | |
Other assets | 756 | 833 | |
Assets | 1,824 | 2,410 | |
Liabilities | |||
Other secured financings at fair value | 249 | 289 | |
Other liabilities and accrued expenses | 36 | 29 | |
Liabilities | 285 | 318 | |
Noncontrolling interests | 206 | 228 | |
Additional maximum exposure to losses | $ 0 | $ 78 |
Variable Interest Entities an88
Variable Interest Entities and Securitization Activities (Non-Consolidated VIEs) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity | ||
Additional VIE assets issued by securitization SPEs | $ 11,900 | $ 11,700 |
Mortgage and Asset-Backed Securities | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 78,818 | 101,916 |
Maximum exposure to loss | 9,287 | 11,927 |
Residential Mortgage | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 9,106 | 4,775 |
Commercial Mortgage | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 49,504 | 54,021 |
U.S. Agency Collateralized Mortgage Obligations | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 13,243 | 14,796 |
Other Consumer or Commercial Loans | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 6,965 | 28,324 |
Collateralized Debt Obligations | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 8,598 | 11,341 |
Maximum exposure to loss | 3,171 | 1,344 |
Municipal Tender Option Bonds | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 5,337 | 4,857 |
Maximum exposure to loss | 3,281 | 2,862 |
Other Structured Financings | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 3,526 | 4,293 |
Maximum exposure to loss | 1,677 | 1,757 |
Other | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 34,823 | 39,077 |
Maximum exposure to loss | 5,890 | 5,150 |
Assets | Mortgage and Asset-Backed Securities | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 8,482 | 11,243 |
Assets | Collateralized Debt Obligations | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 1,703 | 1,245 |
Assets | Municipal Tender Option Bonds | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 57 | 54 |
Assets | Other Structured Financings | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 1,098 | 1,183 |
Assets | Other | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 5,580 | 4,895 |
Debt and Equity Interests | Mortgage and Asset-Backed Securities | ||
Variable Interest Entity | ||
Maximum exposure to loss | 8,482 | 11,243 |
Carrying value of exposure to loss | 8,482 | 11,243 |
Debt and Equity Interests | Residential Mortgage | ||
Variable Interest Entity | ||
Maximum exposure to loss | 524 | 458 |
Debt and Equity Interests | Commercial Mortgage | ||
Variable Interest Entity | ||
Maximum exposure to loss | 2,614 | 2,656 |
Debt and Equity Interests | U.S. Agency Collateralized Mortgage Obligations | ||
Variable Interest Entity | ||
Maximum exposure to loss | 2,745 | 2,758 |
Debt and Equity Interests | Other Consumer or Commercial Loans | ||
Variable Interest Entity | ||
Maximum exposure to loss | 2,599 | 5,371 |
Debt and Equity Interests | Collateralized Debt Obligations | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,703 | 1,245 |
Carrying value of exposure to loss | 1,703 | 1,245 |
Debt and Equity Interests | Municipal Tender Option Bonds | ||
Variable Interest Entity | ||
Maximum exposure to loss | 52 | 50 |
Carrying value of exposure to loss | 52 | 49 |
Debt and Equity Interests | Other Structured Financings | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,503 | 1,570 |
Carrying value of exposure to loss | 1,098 | 1,183 |
Debt and Equity Interests | Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 5,528 | 4,877 |
Carrying value of exposure to loss | 5,528 | 4,877 |
Net Derivative and Other Contracts | Mortgage and Asset-Backed Securities | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of exposure to loss | 0 | 0 |
Net Derivative and Other Contracts | Collateralized Debt Obligations | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of exposure to loss | 0 | 0 |
Net Derivative and Other Contracts | Municipal Tender Option Bonds | ||
Variable Interest Entity | ||
Maximum exposure to loss | 3,229 | 2,812 |
Carrying value of exposure to loss | 5 | 5 |
Net Derivative and Other Contracts | Other Structured Financings | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of exposure to loss | 0 | 0 |
Net Derivative and Other Contracts | Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 25 | 45 |
Carrying value of exposure to loss | 52 | 18 |
Commitments, Guarantees and Other | Mortgage and Asset-Backed Securities | ||
Variable Interest Entity | ||
Maximum exposure to loss | 805 | 684 |
Commitments, Guarantees and Other | Collateralized Debt Obligations | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,468 | 99 |
Commitments, Guarantees and Other | Municipal Tender Option Bonds | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Commitments, Guarantees and Other | Other Structured Financings | ||
Variable Interest Entity | ||
Maximum exposure to loss | 174 | 187 |
Commitments, Guarantees and Other | Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | $ 337 | $ 228 |
Variable Interest Entities an89
Variable Interest Entities and Securitization Activities (Transfers of Assets with Continuing Involvement 1) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity | ||
Derivative assets (fair value) | $ 30,140 | $ 31,206 |
Derivative liabilities (fair value) | 26,705 | 29,315 |
Special Purpose Entities | ||
Variable Interest Entity | ||
Retained interests | 1,466 | 1,306 |
Interests purchased in the secondary market (fair value) | 250 | 154 |
Derivative assets (fair value) | 33 | 350 |
Derivative liabilities (fair value) | 307 | 459 |
Special Purpose Entities | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 734 | 397 |
Interests purchased in the secondary market (fair value) | 162 | 56 |
Special Purpose Entities | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 732 | 909 |
Interests purchased in the secondary market (fair value) | 88 | 98 |
Special Purpose Entities | Residential Mortgage Loans | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 17,692 | 19,381 |
Retained interests | 3 | 4 |
Interests purchased in the secondary market (fair value) | 21 | 23 |
Derivative assets (fair value) | 1 | 0 |
Derivative liabilities (fair value) | 0 | 0 |
Special Purpose Entities | Residential Mortgage Loans | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 0 | 0 |
Interests purchased in the secondary market (fair value) | 4 | 0 |
Special Purpose Entities | Residential Mortgage Loans | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 3 | 4 |
Interests purchased in the secondary market (fair value) | 17 | 23 |
Special Purpose Entities | Commercial Mortgage Loans | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 53,764 | 43,104 |
Retained interests | 226 | 101 |
Interests purchased in the secondary market (fair value) | 163 | 105 |
Derivative assets (fair value) | 0 | 261 |
Derivative liabilities (fair value) | 0 | 0 |
Special Purpose Entities | Commercial Mortgage Loans | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 140 | 22 |
Interests purchased in the secondary market (fair value) | 92 | 30 |
Special Purpose Entities | Commercial Mortgage Loans | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 86 | 79 |
Interests purchased in the secondary market (fair value) | 71 | 75 |
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 12,337 | 11,092 |
Retained interests | 710 | 375 |
Interests purchased in the secondary market (fair value) | 66 | 26 |
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 | 710 | 375 |
Interests purchased in the secondary market (fair value) | 66 | 26 |
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 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) | 11,831 | 11,613 |
Retained interests | 648 | 826 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Derivative assets (fair value) | 32 | 89 |
Derivative liabilities (fair value) | 307 | 459 |
Special Purpose Entities | Credit-Linked Notes and Other | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 5 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Credit-Linked Notes and Other | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 643 | 826 |
Interests purchased in the secondary market (fair value) | $ 0 | $ 0 |
Variable Interest Entities an90
Variable Interest Entities and Securitization Activities (Transfers of Assets with Continuing Involvement 2) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity | ||
Derivative assets (fair value) | $ 30,140 | $ 31,206 |
Derivative liabilities (fair value) | 26,705 | 29,315 |
Special Purpose Entities | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,466 | 1,306 |
Interests purchased in the secondary market (fair value) | 250 | 154 |
Derivative assets (fair value) | 33 | 350 |
Derivative liabilities (fair value) | 307 | 459 |
Special Purpose Entities | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 734 | 397 |
Interests purchased in the secondary market (fair value) | 162 | 56 |
Special Purpose Entities | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 732 | 909 |
Interests purchased in the secondary market (fair value) | 88 | 98 |
Special Purpose Entities | Level 2 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 733 | 399 |
Interests purchased in the secondary market (fair value) | 230 | 140 |
Derivative assets (fair value) | 33 | 348 |
Derivative liabilities (fair value) | 131 | 98 |
Special Purpose Entities | Level 2 | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 729 | 385 |
Interests purchased in the secondary market (fair value) | 155 | 56 |
Special Purpose Entities | Level 2 | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 4 | 14 |
Interests purchased in the secondary market (fair value) | 75 | 84 |
Special Purpose Entities | Level 3 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 733 | 907 |
Interests purchased in the secondary market (fair value) | 20 | 14 |
Derivative assets (fair value) | 0 | 2 |
Derivative liabilities (fair value) | 176 | 361 |
Special Purpose Entities | Level 3 | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 5 | 12 |
Interests purchased in the secondary market (fair value) | 7 | 0 |
Special Purpose Entities | Level 3 | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 728 | 895 |
Interests purchased in the secondary market (fair value) | $ 13 | $ 14 |
Variable Interest Entities an91
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
OTC | Equity Derivatives | |||||
Transfer of Financial Assets Accounted for as Sales | |||||
Carrying value of assets derecognized at the time of sale and gross cash proceeds | $ 14,817 | $ 14,817 | $ 11,209 | ||
Fair value of assets sold | 14,710 | 14,710 | 11,301 | ||
Fair value of derivative assets recognized in the consolidated balance sheets | 33 | 33 | 128 | ||
Fair value of derivative liabilities recognized in the consolidated balance sheets | 140 | 140 | $ 36 | ||
Special Purpose Entities | |||||
Transfer of Financial Assets Accounted for as Sales | |||||
Proceeds from new securitization transactions | 4,750 | $ 4,163 | 10,747 | $ 6,876 | |
Proceeds from retained interests in securitization transactions | 529 | 502 | 959 | 1,133 | |
CLO SPEs | Corporate Loans | |||||
Transfer of Financial Assets Accounted for as Sales | |||||
Proceeds from sale of loans | $ 239 | $ 0 | $ 418 | $ 31 |
Variable Interest Entities an92
Variable Interest Entities and Securitization Activities (Failed Sales) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Failed Sales | ||
Assets, carrying value | $ 641 | $ 285 |
Liabilities, carrying value | $ 641 | $ 285 |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Regulatory Requirements | |
Description of regulatory requirements on capital adequacy | In addition 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 capital surcharge, currently at 3%; and Up to a 2.5% Common Equity Tier 1 countercyclical capital buffer, currently set by U.S. banking regulators at zero (collectively, the “buffers”). |
Description of possible effects of noncompliance | In 2017, the phase-in amount for each of the buffers is 50% of 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 executive officers. |
Regulatory Requirements (Capita
Regulatory Requirements (Capital Measures) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Advanced Approach | ||
Balance | ||
Common Equity Tier 1 capital | $ 61,604 | $ 60,398 |
Tier 1 capital | 70,380 | 68,097 |
Total capital | 81,025 | 78,642 |
Assets | ||
Total RWAs | $ 370,679 | $ 358,141 |
Ratio | ||
Common Equity Tier 1 capital | 16.60% | 16.90% |
Tier 1 capital | 19.00% | 19.00% |
Total capital | 21.90% | 22.00% |
Minimum Capital Ratio | ||
Common Equity Tier 1 capital | 7.30% | 5.90% |
Tier 1 capital | 8.80% | 7.40% |
Total capital | 10.80% | 9.40% |
Standardized Approach | ||
Assets | ||
Adjusted average assets | $ 828,365 | $ 811,402 |
Ratio | ||
Tier 1 leverage | 8.50% | 8.40% |
Minimum Capital Ratio | ||
Tier 1 leverage | 4.00% | 4.00% |
Regulatory Requirements (U.S. B
Regulatory Requirements (U.S. Bank Subsidiaries' Regulatory Capital and Capital Ratios) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Advanced Approach | ||
Regulatory Requirements | ||
Common Equity Tier 1 capital | $ 61,604 | $ 60,398 |
Tier 1 capital | 70,380 | 68,097 |
Total capital | $ 81,025 | $ 78,642 |
Ratio | ||
Common Equity Tier 1 capital | 16.60% | 16.90% |
Tier 1 capital | 19.00% | 19.00% |
Total capital | 21.90% | 22.00% |
Standardized Approach | ||
Ratio | ||
Tier 1 leverage | 8.50% | 8.40% |
MSBNA | Standardized Approach | ||
Regulatory Requirements | ||
Common Equity Tier 1 capital | $ 14,526 | $ 13,398 |
Tier 1 capital | 14,526 | 13,398 |
Total capital | 14,807 | 14,858 |
Tier 1 leverage | $ 14,526 | $ 13,398 |
Ratio | ||
Common Equity Tier 1 capital | 18.50% | 16.90% |
Tier 1 capital | 18.50% | 16.90% |
Total capital | 18.90% | 18.70% |
Tier 1 leverage | 12.00% | 10.50% |
Minimum Capital Ratio | ||
Common Equity Tier 1 capital | 6.50% | 6.50% |
Tier 1 capital ratio | 8.00% | 8.00% |
Total capital ratio | 10.00% | 10.00% |
Tier 1 leverage ratio | 5.00% | 5.00% |
MSPBNA | Standardized Approach | ||
Regulatory Requirements | ||
Common Equity Tier 1 capital | $ 5,898 | $ 5,589 |
Tier 1 capital | 5,898 | 5,589 |
Total capital | 5,938 | 5,626 |
Tier 1 leverage | $ 5,898 | $ 5,589 |
Ratio | ||
Common Equity Tier 1 capital | 24.80% | 26.10% |
Tier 1 capital | 24.80% | 26.10% |
Total capital | 25.00% | 26.30% |
Tier 1 leverage | 10.30% | 10.60% |
Minimum Capital Ratio | ||
Common Equity Tier 1 capital | 6.50% | 6.50% |
Tier 1 capital ratio | 8.00% | 8.00% |
Total capital ratio | 10.00% | 10.00% |
Tier 1 leverage ratio | 5.00% | 5.00% |
Regulatory Requirements (Broker
Regulatory Requirements (Broker-Dealer Regulatory Capital Requirements) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
MS&Co. | ||
Regulatory Requirements | ||
Net capital | $ 10,388 | $ 10,311 |
Excess net capital | 8,312 | 8,034 |
Required tentative net capital | 1,000 | 1,000 |
Required net capital | 500 | 500 |
Amount by which if tentative net capital falls below, the entity is required to notify the SEC | 5,000 | 5,000 |
MSSB LLC | ||
Regulatory Requirements | ||
Net capital | 2,288 | 3,946 |
Excess net capital | $ 2,131 | $ 3,797 |
Total Equity (Dividents and Sha
Total Equity (Dividents and Share Repurchase) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share Repurchase Program | ||||
Outstanding common stock repurchased | $ 500 | $ 625 | $ 1,250 | $ 1,250 |
Capital Plans | ||||
Dividends declared per common share | $ 0.2 | $ 0.15 | $ 0.4 | $ 0.3 |
2016 Capital Plan | ||||
Capital Plans | ||||
Authorized repurchase amount of outstanding common stock | $ 3,500 | $ 3,500 | ||
Dividends declared per common share | $ 0.2 | |||
2017 Capital Plan | ||||
Capital Plans | ||||
Authorized repurchase amount of outstanding common stock | $ 5,000 | $ 5,000 | ||
Stock repurchase program start date | Jul. 1, 2017 | |||
Stock repurchase program expiration date | Jun. 30, 2018 | |||
Dividends declared per common share | $ 0.25 | |||
Start date of current common stock dividend per share declared | Jul. 19, 2017 |
Total Equity (Preferred Stock G
Total Equity (Preferred Stock General Disclosure) (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Preferred Stock | |||||
Issuance of preferred stock, net of issuance costs | $ 994 | $ 0 | |||
Preferred Stock | |||||
Preferred Stock | |||||
Preferred stock dividends declared | $ 170 | $ 156 | $ 260 | $ 234 | |
Dividend declared date | Jun. 15, 2017 | ||||
Date of shareholders on record | Jun. 30, 2017 | ||||
Dividend payable date | Jul. 17, 2017 | ||||
Preferred stock shares authorized | 30 | 30 | |||
Series K Preferred Stock | |||||
Preferred Stock | |||||
Issuance of preferred stock, net of issuance costs | $ 994 |
Total Equity (Preferred Stock O
Total Equity (Preferred Stock Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Class of Stock | ||
Preferred stock carrying value | $ 8,520 | $ 7,520 |
Series A Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 44,000 | |
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 | |
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 aggregate purchase price | $ 911 | |
Preferred stock redemption, shares | 640,909 | |
Preferred stock redemption amount | $ 503 | |
Preferred stock converted to common shares | $ 705 | |
Series E Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 34,500 | |
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 | |
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 | |
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 | |
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 | |
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 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,500 | 1,500 |
Series K Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 40,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,000 | $ 0 |
Total Equity (Accumulated Other
Total Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Cumulative adjustment for accounting change related to DVA | [1] | $ 0 | |||
Accumulated Other Comprehensive Income (Loss) | |||||
Beginning balance | $ (2,450) | $ (1,238) | $ (2,643) | (1,656) | |
Cumulative adjustment for accounting change related to DVA | [1] | (312) | |||
OCI during the period | (38) | 333 | 155 | 1,063 | |
Ending balance | (2,488) | (905) | (2,488) | (905) | |
Foreign Currency Translation Adjustments | |||||
Beginning balance | (879) | (831) | (986) | (963) | |
Cumulative adjustment for accounting change related to DVA | 0 | ||||
OCI during the period | 23 | 52 | 130 | 184 | |
Ending balance | (856) | (779) | (856) | (779) | |
AFS Securities | |||||
Beginning balance | (504) | 76 | (588) | (319) | |
Cumulative adjustment for accounting change related to DVA | 0 | ||||
OCI during the period | 108 | 143 | 192 | 538 | |
Ending balance | (396) | 219 | (396) | 219 | |
Pension, Postretirement and Other | |||||
Beginning balance | (474) | (373) | (474) | (374) | |
Cumulative adjustment for accounting change related to DVA | 0 | ||||
OCI during the period | 4 | (5) | 4 | (4) | |
Ending balance | (470) | (378) | (470) | (378) | |
DVA | |||||
Beginning balance | (593) | (110) | (595) | 0 | |
Cumulative adjustment for accounting change related to DVA | (312) | ||||
OCI during the period | (173) | 143 | (171) | 345 | |
Ending balance | $ (766) | $ 33 | $ (766) | $ 33 | |
[1] | Debt valuation adjustment (“DVA”) represent s the change in the fair value resulting from fluctuations in the Firm’s credit spreads and other credit factors relate d to liabilities carried at fair value under the fair value option , primarily related to certain Long-term and Short-term borrowings. In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Ass ets and Financial Liabilities , a cumulative catch - up adjustment was recorded as of January 1, 2016 to move the cumulative unrealized DVA amount, net of noncontrolling interest s and tax, related to outstanding liabilities under the fair value option electio n from Retained earnings into Accumulated other comprehensive i ncome (loss) (“AOCI”). See Note 2 to the consolidated financial statements in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”) and Note 14 for further information. |
Total Equity (Period Changes in
Total Equity (Period Changes in OCI Components) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pre-tax Gain (Loss): Foreign Currency Translation Adjustments | ||||
OCI activity | $ 1 | $ 72 | $ 44 | $ 143 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | 1 | 72 | 44 | 143 |
Pre-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | 185 | 298 | 322 | 934 |
Reclassified to earnings | (14) | (70) | (16) | (82) |
Net OCI | 171 | 228 | 306 | 852 |
Pre-tax Gain (Loss): Pension, Postretirement and Other | ||||
OCI activity | 3 | (5) | 3 | (6) |
Reclassified to earnings | 1 | (1) | 1 | (2) |
Net OCI | 4 | (6) | 4 | (8) |
Pre-tax Gain (Loss): Change in Net DVA | ||||
OCI activity | (285) | 225 | (278) | 589 |
Reclassified to earnings | 4 | 0 | 8 | (41) |
Net OCI | (281) | 225 | (270) | 548 |
Income Tax Benefit (Provision): Foreign Currency Translation Adjustments | ||||
OCI activity | 11 | 59 | 118 | 174 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | 11 | 59 | 118 | 174 |
Income Tax Benefit (Provision): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | (68) | (110) | (120) | (344) |
Reclassified to earnings | 5 | 25 | 6 | 30 |
Net OCI | (63) | (85) | (114) | (314) |
Income Tax Benefit (Provision): Pension, Postretirement and Other | ||||
OCI activity | 0 | 0 | 0 | 3 |
Reclassified to earnings | 0 | 1 | 0 | 1 |
Net OCI | 0 | 1 | 0 | 4 |
Income Tax Benefit (Provision): Change in Net DVA | ||||
OCI activity | 99 | (80) | 98 | (215) |
Reclassified to earnings | (1) | 0 | (2) | 15 |
Net OCI | 98 | (80) | 96 | (200) |
After-tax Gain (Loss): Foreign Currency Translation Adjustments | ||||
OCI activity | 12 | 131 | 162 | 317 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | 12 | 131 | 162 | 317 |
After-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | 117 | 188 | 202 | 590 |
Reclassified to earnings | (9) | (45) | (10) | (52) |
Net OCI | 108 | 143 | 192 | 538 |
After-tax Gain (Loss): Pension, Postretirement and Other | ||||
OCI activity | 3 | (5) | 3 | (3) |
Reclassified to earnings | 1 | 0 | 1 | (1) |
Net OCI | 4 | (5) | 4 | (4) |
After-tax Gain (Loss): Change in Net DVA | ||||
OCI activity | (186) | 145 | (180) | 374 |
Reclassified to earnings | 3 | 0 | 6 | (26) |
Net OCI | (183) | 145 | (174) | 348 |
Non-controlling Interests | ||||
After-tax Gain (Loss): Foreign Currency Translation Adjustments | ||||
OCI activity | (11) | 79 | 32 | 133 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | (11) | 79 | 32 | 133 |
After-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | 0 | 0 | 0 | 0 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | 0 | 0 | 0 | 0 |
After-tax Gain (Loss): Pension, Postretirement and Other | ||||
OCI activity | 0 | 0 | 0 | 0 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | 0 | 0 | 0 | 0 |
After-tax Gain (Loss): Change in Net DVA | ||||
OCI activity | (10) | 2 | (3) | 3 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | (10) | 2 | (3) | 3 |
Parent | ||||
After-tax Gain (Loss): Foreign Currency Translation Adjustments | ||||
OCI activity | 23 | 52 | 130 | 184 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | 23 | 52 | 130 | 184 |
After-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | 117 | 188 | 202 | 590 |
Reclassified to earnings | (9) | (45) | (10) | (52) |
Net OCI | 108 | 143 | 192 | 538 |
After-tax Gain (Loss): Pension, Postretirement and Other | ||||
OCI activity | 3 | (5) | 3 | (3) |
Reclassified to earnings | 1 | 0 | 1 | (1) |
Net OCI | 4 | (5) | 4 | (4) |
After-tax Gain (Loss): Change in Net DVA | ||||
OCI activity | (176) | 143 | (177) | 371 |
Reclassified to earnings | 3 | 0 | 6 | (26) |
Net OCI | $ (173) | $ 143 | $ (171) | $ 345 |
Total Equity (Cumulative Foreig
Total Equity (Cumulative Foreign Currency Translation Adjustments and NCI) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Total Equity | ||
Noncontrolling interests | $ 1,141 | $ 1,127 |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic EPS | ||||
Income from continuing operations | $ 1,796 | $ 1,650 | $ 3,789 | $ 2,810 |
Income (loss) from discontinued operations | (5) | (4) | (27) | (7) |
Net income | 1,791 | 1,646 | 3,762 | 2,803 |
Net income applicable to noncontrolling interests | 34 | 64 | 75 | 87 |
Net income applicable to Morgan Stanley | 1,757 | 1,582 | 3,687 | 2,716 |
Less: Preferred stock dividends and other | (170) | (157) | (260) | (235) |
Earnings applicable to Morgan Stanley common shareholders | $ 1,587 | $ 1,425 | $ 3,427 | $ 2,481 |
Weighted average common shares outstanding | 1,791 | 1,866 | 1,796 | 1,875 |
Earnings per basic common share | ||||
Income from continuing operations | $ 0.89 | $ 0.77 | $ 1.92 | $ 1.33 |
Income (loss) from discontinued operations | 0 | (0.01) | (0.01) | (0.01) |
Earnings per basic common share | $ 0.89 | $ 0.76 | $ 1.91 | $ 1.32 |
Diluted EPS | ||||
Earnings applicable to Morgan Stanley common shareholders | $ 1,587 | $ 1,425 | $ 3,427 | $ 2,481 |
Weighted average common shares outstanding | 1,791 | 1,866 | 1,796 | 1,875 |
Effect of dilutive securities: | ||||
Stock options and RSUs | 39 | 33 | 40 | 32 |
Weighted average common shares outstanding and common stock equivalents | 1,830 | 1,899 | 1,836 | 1,907 |
Earnings per diluted common share | ||||
Income from continuing operations | $ 0.87 | $ 0.75 | $ 1.88 | $ 1.3 |
Income (loss) from discontinued operations | 0 | 0 | (0.01) | 0 |
Earnings per diluted common share | $ 0.87 | $ 0.75 | $ 1.87 | $ 1.3 |
Antidilutive securities excluded from EPS computations | 0 | 14 | 0 | 15 |
Interest Income and Interest104
Interest Income and Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest income | ||||
Investment securities | $ 304 | $ 237 | $ 630 | $ 473 |
Loans | 798 | 680 | 1,546 | 1,327 |
Interest bearing deposits with banks | 67 | 52 | 122 | 105 |
Securities purchased under agreements to resell and Securities borrowed | 29 | (120) | 10 | (198) |
Trading assets, net of Trading liabilities | 491 | 526 | 955 | 1,109 |
Customer receivables and Other | 417 | 292 | 808 | 598 |
Total Interest income | 2,106 | 1,667 | 4,071 | 3,414 |
Interest expense | ||||
Deposits | 14 | 15 | 25 | 37 |
Short-term and Long-term borrowings | 1,067 | 851 | 2,088 | 1,818 |
Securities sold under agreements to repurchase and Securities loaned | 339 | 259 | 587 | 513 |
Customer payables and Other | (65) | (371) | (151) | (766) |
Total Interest expense | 1,355 | 754 | 2,549 | 1,602 |
Net interest | $ 751 | $ 913 | $ 1,522 | $ 1,812 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Expense (Income)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Components of Net Periodic Benefit Expense (Income) | ||||
Service cost, benefits earned during the period | $ 4 | $ 4 | $ 8 | $ 8 |
Interest cost on projected benefit obligation | 38 | 39 | 75 | 77 |
Expected return on plan assets | (29) | (30) | (58) | (60) |
Net amortization of prior service credit | (4) | (5) | (8) | (9) |
Net amortization of actuarial loss | 4 | 3 | 8 | 6 |
Net periodic benefit expense (income) | $ 13 | $ 11 | $ 25 | $ 22 |
Segment and Geographic Infor106
Segment and Geographic Information (Selected Financial Information by Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information | |||||
Total non-interest revenues | $ 8,752 | $ 7,996 | $ 17,726 | $ 14,889 | |
Interest income | 2,106 | 1,667 | 4,071 | 3,414 | |
Interest expense | 1,355 | 754 | 2,549 | 1,602 | |
Net interest | 751 | 913 | 1,522 | 1,812 | |
Net revenues | 9,503 | 8,909 | 19,248 | 16,701 | |
Income from continuing operations before income taxes | 2,642 | 2,483 | 5,450 | 4,221 | |
Provision for income taxes | 846 | 833 | 1,661 | 1,411 | |
Income from continuing operations | 1,796 | 1,650 | 3,789 | 2,810 | |
Income (loss) from discontinued operations, net of income taxes | (5) | (4) | (27) | (7) | |
Net income | 1,791 | 1,646 | 3,762 | 2,803 | |
Net income (loss) applicable to noncontrolling interests | 34 | 64 | 75 | 87 | |
Net income applicable to Morgan Stanley | 1,757 | 1,582 | 3,687 | 2,716 | |
Segment Reporting Information, Additional Information | |||||
Net unrealized cumulative performance-based fees | 469 | 469 | $ 397 | ||
Reduction of fees from certain registered money market funds | 23 | 12 | 45 | 35 | |
Intersegment Eliminations | |||||
Segment Reporting Information | |||||
Total non-interest revenues | (75) | (63) | (152) | (130) | |
Interest income | (252) | (222) | (491) | (443) | |
Interest expense | (252) | (222) | (494) | (443) | |
Net interest | 0 | 0 | 3 | 0 | |
Net revenues | (75) | (63) | (149) | (130) | |
Income from continuing operations before income taxes | 0 | 0 | 2 | 0 | |
Provision for income taxes | 0 | 0 | 0 | 0 | |
Income from continuing operations | 0 | 0 | 2 | 0 | |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | |
Net income | 0 | 0 | 2 | 0 | |
Net income (loss) applicable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income applicable to Morgan Stanley | 0 | 0 | 2 | 0 | |
Institutional Securities | |||||
Segment Reporting Information | |||||
Total non-interest revenues | 5,020 | 4,496 | 10,399 | 8,141 | |
Interest income | 1,243 | 966 | 2,367 | 2,019 | |
Interest expense | 1,501 | 884 | 2,852 | 1,868 | |
Net interest | (258) | 82 | (485) | 151 | |
Net revenues | 4,762 | 4,578 | 9,914 | 8,292 | |
Income from continuing operations before income taxes | 1,443 | 1,506 | 3,173 | 2,414 | |
Provision for income taxes | 413 | 453 | 872 | 728 | |
Income from continuing operations | 1,030 | 1,053 | 2,301 | 1,686 | |
Income (loss) from discontinued operations, net of income taxes | (5) | (4) | (27) | (7) | |
Net income | 1,025 | 1,049 | 2,274 | 1,679 | |
Net income (loss) applicable to noncontrolling interests | 33 | 61 | 68 | 100 | |
Net income applicable to Morgan Stanley | 992 | 988 | 2,206 | 1,579 | |
Segment Reporting Information, Additional Information | |||||
Provision for potential additional value-added tax, interest and penalties | 86 | ||||
Wealth Management | |||||
Segment Reporting Information | |||||
Total non-interest revenues | 3,142 | 2,982 | 6,206 | 5,819 | |
Interest income | 1,114 | 920 | 2,193 | 1,834 | |
Interest expense | 105 | 91 | 190 | 174 | |
Net interest | 1,009 | 829 | 2,003 | 1,660 | |
Net revenues | 4,151 | 3,811 | 8,209 | 7,479 | |
Income from continuing operations before income taxes | 1,057 | 859 | 2,030 | 1,645 | |
Provision for income taxes | 392 | 343 | 718 | 636 | |
Income from continuing operations | 665 | 516 | 1,312 | 1,009 | |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | |
Net income | 665 | 516 | 1,312 | 1,009 | |
Net income (loss) applicable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income applicable to Morgan Stanley | 665 | 516 | 1,312 | 1,009 | |
Investment Management | |||||
Segment Reporting Information | |||||
Total non-interest revenues | 665 | 581 | 1,273 | 1,059 | |
Interest income | 1 | 3 | 2 | 4 | |
Interest expense | 1 | 1 | 1 | 3 | |
Net interest | 0 | 2 | 1 | 1 | |
Net revenues | 665 | 583 | 1,274 | 1,060 | |
Income from continuing operations before income taxes | 142 | 118 | 245 | 162 | |
Provision for income taxes | 41 | 37 | 71 | 47 | |
Income from continuing operations | 101 | 81 | 174 | 115 | |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | |
Net income | 101 | 81 | 174 | 115 | |
Net income (loss) applicable to noncontrolling interests | 1 | 3 | 7 | (13) | |
Net income applicable to Morgan Stanley | $ 100 | $ 78 | $ 167 | $ 128 |
Segment and Geographic Infor107
Segment and Geographic Information (Assets by Business Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information | ||
Assets | $ 841,016 | $ 814,949 |
Institutional Securities | ||
Segment Reporting Information | ||
Assets | 665,603 | 629,149 |
Wealth Management | ||
Segment Reporting Information | ||
Assets | 170,735 | 181,135 |
Investment Management | ||
Segment Reporting Information | ||
Assets | $ 4,678 | $ 4,665 |
Segment and Geographic Infor108
Segment and Geographic Information (Net Revenues and Total Assets by Region) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information | ||||
Net revenues | $ 9,503 | $ 8,909 | $ 19,248 | $ 16,701 |
Americas | ||||
Segment Reporting Information | ||||
Net revenues | 6,746 | 6,538 | 13,834 | 12,290 |
EMEA | ||||
Segment Reporting Information | ||||
Net revenues | 1,606 | 1,312 | 3,095 | 2,441 |
Asia-Pacific | ||||
Segment Reporting Information | ||||
Net revenues | $ 1,151 | $ 1,059 | $ 2,319 | $ 1,970 |