Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | STATE STREET Corp | |
Entity Central Index Key | 93,751 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 373,955,415 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fee revenue: | ||||
Servicing fees | $ 1,339 | $ 1,239 | $ 2,635 | $ 2,481 |
Management fees | 397 | 293 | 779 | 563 |
Trading services | 289 | 267 | 564 | 539 |
Securities finance | 179 | 156 | 312 | 290 |
Processing fees and other | 31 | 98 | 143 | 150 |
Total fee revenue | 2,235 | 2,053 | 4,433 | 4,023 |
Net interest income: | ||||
Interest income | 700 | 620 | 1,350 | 1,249 |
Interest expense | 125 | 99 | 265 | 216 |
Net interest income | 575 | 521 | 1,085 | 1,033 |
Gains (losses) related to investment securities, net: | ||||
Gains (losses) from sales of available-for-sale securities, net | 0 | (1) | (40) | 1 |
Gains (losses) related to investment securities, net | 0 | (1) | (40) | 1 |
Total revenue | 2,810 | 2,573 | 5,478 | 5,057 |
Provision for loan losses | 3 | 4 | 1 | 8 |
Expenses: | ||||
Compensation and employee benefits | 1,071 | 989 | 2,237 | 2,096 |
Information systems and communications | 283 | 270 | 570 | 542 |
Transaction processing services | 207 | 201 | 404 | 401 |
Occupancy | 116 | 111 | 226 | 224 |
Acquisition and restructuring costs | 71 | 20 | 100 | 124 |
Professional services | 97 | 82 | 191 | 175 |
Amortization of other intangible assets | 54 | 49 | 106 | 98 |
Other | 132 | 138 | 283 | 250 |
Total expenses | 2,031 | 1,860 | 4,117 | 3,910 |
Income before income tax expense | 776 | 709 | 1,360 | 1,139 |
Income tax expense (benefit) | 156 | 92 | 238 | 154 |
Net income from non-controlling interest | 0 | 2 | 0 | 2 |
Net income | 620 | 619 | 1,122 | 987 |
Net income available to common shareholders | $ 584 | $ 585 | $ 1,030 | $ 904 |
Earnings per common share: | ||||
Basic (in USD per share) | $ 1.56 | $ 1.48 | $ 2.72 | $ 2.28 |
Diluted (in USD per share) | $ 1.53 | $ 1.47 | $ 2.69 | $ 2.25 |
Average common shares outstanding (in thousands): | ||||
Basic (in shares) | 375,395 | 394,160 | 378,293 | 396,790 |
Diluted (in shares) | 380,915 | 398,847 | 383,489 | 401,113 |
Cash dividends declared (in USD per share) | $ 0.38 | $ 0.34 | $ 0.76 | $ 0.68 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 620 | $ 619 | $ 1,122 | $ 987 |
Other comprehensive income (loss), net of related taxes: | ||||
Foreign currency translation, net of related taxes of ($110) and ($19), respectively | 435 | (213) | 526 | 94 |
Net unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment and net of related taxes of $177 and $187, respectively | 271 | 286 | 472 | 546 |
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes of zero and ($3), respectively | 3 | (3) | 9 | (22) |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of zero and $1, respectively | 1 | 2 | 2 | 3 |
Net unrealized gains (losses) on cash flow hedges, net of related taxes of ($113) and ($72), respectively | (177) | (106) | (247) | (174) |
Net unrealized gains (losses) on retirement plans, net of related taxes of ($1) and $1, respectively | 2 | 1 | 8 | (2) |
Other comprehensive income (loss) | 535 | (33) | 770 | 445 |
Total comprehensive income | $ 1,155 | $ 586 | $ 1,892 | $ 1,432 |
Consolidated Statement of Comp4
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation, Taxes | $ (110) | $ (19) | $ 13 | $ (10) |
Change in net unrealized losses on available-for-sale securities, Taxes | 177 | 187 | 308 | 358 |
Change in net unrealized losses on available-for-sale securities designated in fair value hedges, Taxes | 0 | (3) | 5 | (15) |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, Taxes | 0 | 1 | 1 | 2 |
Change in net unrealized losses on cash flow hedges, Taxes | (113) | (72) | (164) | (117) |
Change in unrealized losses on retirement plans, Taxes | $ (1) | $ 1 | $ 2 | $ 3 |
Consolidated Statement of Condi
Consolidated Statement of Condition - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and due from banks | $ 3,156 | $ 1,314 |
Interest-bearing deposits with banks | 63,617 | 70,935 |
Securities purchased under resale agreements | 3,172 | 1,956 |
Trading account assets | 896 | 1,024 |
Investment securities available-for-sale | 59,025 | 61,998 |
Investment securities held-to-maturity (fair value of $36,169 and $34,994) | 36,230 | 35,169 |
Loans and leases (less allowance for losses of $51 and $46) | 24,307 | 19,704 |
Premises and equipment (net of accumulated depreciation of $3,611 and $3,333) | 2,137 | 2,062 |
Accrued interest and fees receivable | 2,805 | 2,644 |
Goodwill | 5,945 | 5,814 |
Other intangible assets | 1,693 | 1,750 |
Other assets | 35,291 | 38,328 |
Total assets | 238,274 | 242,698 |
Deposits: | ||
Non-interest-bearing | 50,957 | 59,397 |
Interest-bearing—U.S. | 24,438 | 30,911 |
Interest-bearing—non-U.S. | 106,021 | 96,855 |
Total deposits | 181,416 | 187,163 |
Securities sold under repurchase agreements | 3,856 | 4,400 |
Other short-term borrowings | 1,465 | 1,585 |
Accrued expenses and other liabilities | 17,732 | 16,901 |
Long-term debt | 11,737 | 11,430 |
Total liabilities | 216,206 | 221,479 |
Commitments, guarantees and contingencies (Notes 9 and 10) | ||
Shareholders’ equity: | ||
Common stock, $1 par: 750,000,000 shares authorized; 503,879,642 and 503,879,642 shares issued | 504 | 504 |
Surplus | 9,803 | 9,782 |
Retained earnings | 18,202 | 17,459 |
Accumulated other comprehensive income (loss) | (1,270) | (2,040) |
Treasury stock, at cost (129,773,003 and 121,940,502 shares) | (8,367) | (7,682) |
Total shareholders’ equity | 22,068 | 21,219 |
Total liabilities and shareholders' equity | 238,274 | 242,698 |
Series C Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | 491 | 491 |
Series D Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | 742 | 742 |
Series E Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | 728 | 728 |
Series F Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | 742 | 742 |
Series G Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | $ 493 | $ 493 |
Consolidated Statement of Cond6
Consolidated Statement of Condition (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Investment securities held-to-maturity, fair value | $ 36,169 | $ 34,994 |
Loans and leases, allowance for losses | 54 | 53 |
Premises and equipment, accumulated depreciation | $ 3,611 | $ 3,333 |
Stockholders' Equity: | ||
Preferred stock, no par value (in USD per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 3,500,000 | 3,500,000 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 503,879,642 | 503,879,642 |
Treasury stock, shares | 129,773,003 | 121,940,502 |
Series C Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 5,000 | 5,000 |
Preferred stock, shares outstanding | 5,000 | 5,000 |
Series D Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 7,500 | 7,500 |
Preferred stock, shares outstanding | 7,500 | 7,500 |
Series E Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 7,500 | 7,500 |
Preferred stock, shares outstanding | 7,500 | 7,500 |
Series F Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 7,500 | 7,500 |
Preferred stock, shares outstanding | 7,500 | 7,500 |
Series G Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 5,000 | 5,000 |
Preferred stock, shares outstanding | 5,000 | 5,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes In Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | PREFERRED STOCK | COMMON STOCK | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | TREASURY STOCK |
Beginning balance at Dec. 31, 2015 | $ 21,103 | $ 2,703 | $ 504 | $ 9,746 | $ 16,049 | $ (1,442) | $ (6,457) |
Beginning balance (shares) at Dec. 31, 2015 | 503,880 | 104,228 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 987 | 987 | |||||
Other comprehensive loss | 445 | 445 | |||||
Preferred stock issued | 493 | 493 | |||||
Cash dividends declared: | |||||||
Common stock dividends | (268) | (268) | |||||
Preferred stock cash dividend | (82) | (82) | |||||
Common stock acquired | (715) | $ (715) | |||||
Common stock acquired (shares) | 12,153 | ||||||
Common stock awards exercised | 110 | 21 | $ 89 | ||||
Common stock awards and options exercised (shares) | (2,151) | ||||||
Ending balance at Jun. 30, 2016 | 22,073 | 3,196 | $ 504 | 9,767 | 16,686 | (997) | $ (7,083) |
Ending balance (shares) at Jun. 30, 2016 | 503,880 | 114,230 | |||||
Beginning balance at Dec. 31, 2016 | 21,219 | 3,196 | $ 504 | 9,782 | 17,459 | (2,040) | $ (7,682) |
Beginning balance (shares) at Dec. 31, 2016 | 503,880 | 121,941 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,122 | ||||||
Other comprehensive loss | 770 | 770 | |||||
Cash dividends declared: | |||||||
Common stock dividends | (286) | (286) | |||||
Preferred stock cash dividend | (91) | (91) | |||||
Common stock acquired | (750) | $ (750) | |||||
Common stock acquired (shares) | 9,383 | ||||||
Common stock awards exercised | 86 | 21 | $ 65 | ||||
Common stock awards and options exercised (shares) | (1,551) | ||||||
Other | (2) | (2) | |||||
Other (shares) | |||||||
Ending balance at Jun. 30, 2017 | $ 22,068 | $ 3,196 | $ 504 | $ 9,803 | $ 18,202 | $ (1,270) | $ (8,367) |
Ending balance (shares) at Jun. 30, 2017 | 503,880 | 129,773 |
Consolidated Statement of Chan8
Consolidated Statement of Changes In Shareholders' Equity (Parenthetical) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Cash dividends declared (in USD per share) | $ / shares | $ 0.68 |
Common stock awards and options exercised, related taxes | $ | $ 3 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating Activities: | ||
Net income | $ 1,122 | $ 987 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Deferred income tax (benefit) | (56) | (32) |
Amortization of other intangible assets | 106 | 98 |
Other non-cash adjustments for depreciation, amortization and accretion, net | 415 | 362 |
Losses (gains) related to investment securities, net | 40 | (1) |
Change in trading account assets, net | 128 | (41) |
Change in accrued interest and fees receivable, net | (161) | (53) |
Change in collateral deposits, net | (1,047) | 2,612 |
Change in unrealized losses on foreign exchange derivatives, net | 3,578 | (139) |
Change in other assets, net | (1,787) | (307) |
Change in accrued expenses and other liabilities, net | 1,354 | 1,343 |
Other, net | 307 | 183 |
Net cash provided by operating activities | 3,999 | 5,012 |
Investing Activities: | ||
Net decrease in interest-bearing deposits with banks | 7,318 | 169 |
Net (increase) decrease in securities purchased under resale agreements | (1,216) | 1,394 |
Proceeds from sales of available-for-sale securities | 4,354 | 305 |
Proceeds from maturities of available-for-sale securities | 15,178 | 13,621 |
Purchases of available-for-sale securities | (14,880) | (15,981) |
Proceeds from maturities of held-to-maturity securities | 1,621 | 2,344 |
Purchases of held-to-maturity securities | (2,636) | (2,649) |
Net (increase) in loans and leases | (4,587) | (1,023) |
Purchases of equity investments and other long-term assets | (19) | (214) |
Purchases of premises and equipment, net | (325) | (328) |
Proceeds from sale of joint venture investment | 172 | 0 |
Other, net | 36 | 76 |
Net cash provided by (used in) investing activities | 5,016 | (2,286) |
Financing Activities: | ||
Net (decrease) increase in time deposits | (17,067) | 10,524 |
Net increase (decrease) in all other deposits | 11,320 | (9,021) |
Net (decrease) in other short-term borrowings | (664) | (191) |
Proceeds from issuance of long-term debt, net of issuance costs | 747 | 1,492 |
Payments for long-term debt and obligations under capital leases | (471) | (1,420) |
Proceeds from issuance of preferred stock, net | 0 | 493 |
Purchases of common stock | (592) | (715) |
Excess tax benefit related to stock-based compensation | 0 | 3 |
Repurchases of common stock for employee tax withholding | (76) | (72) |
Payments for cash dividends | (379) | (353) |
Other, net | 9 | 0 |
Net cash (used in) provided by financing activities | (7,173) | 740 |
Net increase | 1,842 | 3,466 |
Cash and due from banks at beginning of period | 1,314 | 1,207 |
Cash and due from banks at end of period | $ 3,156 | $ 4,673 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation: The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the Parent Company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary is State Street Bank. The accompanying Consolidated Financial Statements should be read in conjunction with the financial and risk factor information included in our 2016 Form 10-K, which we previously filed with the SEC. The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue, and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. These accounting estimates reflect the best judgment of management, but actual results could differ. Our consolidated statement of condition as of December 31, 2016 included in the accompanying consolidated financial statements was derived from the audited financial statements as of that date, but does not include all notes required by U.S. GAAP for a complete set of consolidated financial statements. Dispositions In the first quarter of 2017 , we completed the sale of our joint venture interest in IFDS U.K. for approximately $175 million in cash and the exchange of our joint venture interest in BFDS stock for $158 million in State Street's common stock. We recognized a pre-tax gain of $30 million , in the aggregate, in the six months ended June 30, 2017. Recent Accounting Developments: Relevant standards that were issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The standard, and its related amendments, will replace existing revenue recognition standards and expand the disclosure requirements for revenue arrangements with customers. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. January 1, 2018 We are currently assessing the full impact of the revenue recognition standard and its amendments on our consolidated financial statements and evaluating the alternative methods of adoption. ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard makes limited amendments to the guidance on the classification and measurement of financial instruments. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting. In addition, the FASB clarified the guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. This standard must be applied on a retrospective basis. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements. Based on our initial assessments, we do not currently anticipate this standard to have a material impact on our consolidated financial statements due to the limited number of investments on our consolidated statement of condition that are within scope of the standard. ASU 2016-02, Leases (Topic 842) The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. January 1, 2019 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, primarily real estate leases for office space, as well as additional disclosure on all our lease obligations. Relevant standards that were issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities and other financial assets, held at the reporting date to be measured based on historical experience, current conditions and reasonable supportable forecasts. Credit losses on available-for-sale securities will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. January 1, 2020 We are currently assessing the impact of the standard on our consolidated financial statements, and a significant implementation project is in place to ensure that expected credit losses are calculated in accordance with the standard. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and are currently developing key accounting policies, evaluating existing credit loss models and processes and identifying a complete set of data requirements and sources. Based on our analysis to date, we expect a significant effort to develop new or modified credit loss models and that the timing of the recognition of credit losses will accelerate under the new standard. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) The standard amends the statement of cash flow guidance to address specific cash flow issues with the objective of reducing the existing diversity in practice. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements; however based on our current presentation we do not anticipate a significant change to our financial statement presentation of the statement of cash flows. ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business The standard incorporates gating criteria to determine when an integrated set of assets and activities is not a business. When substantially all the fair value of gross assets acquired (or group of similar identifiable assets) is concentrated in a single identifiable asset, it would not represent a business. January 1, 2018, early adoption permitted We will apply this standard prospectively upon adoption. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The ASU requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. January 1, 2020, early adoption permitted We are evaluating the impacts of early adoption, and will apply this standard prospectively upon adoption. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium amortization on Purchased Callable Debt Securities This standard shortens the amortization period for certain purchased callable debt securities to the earliest call date. January 1, 2019, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. We adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , effective January 1, 2017. Starting in the quarter ended March 31, 2017, we reclassified excess tax benefits related to stock-based compensation from financing activities to other operating activities. We continued to present repurchases of common stock for employee tax withholding in financing activities in the consolidated statements of cash flows for all periods presented. As required by the transition provisions of the standard, excess tax benefits previously recognized in surplus prior to January 1, 2017 remain in surplus, and excess tax benefits recognized after January 1, 2017 are included in income tax expense. In connection with this change, we recognized a tax benefit of $11 million in the first six months of 2017 . We elected to make no changes to our current policy of estimating forfeitures. Lastly, we did not make any changes to tax withholding rates. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair-Value Measurements: We carry trading account assets, AFS investment securities and various types of derivative financial instruments at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders' equity in our consolidated statement of condition. We measure fair value for the above-described financial assets and liabilities in conformity with U.S. GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of U.S. GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. For information about our valuation techniques for financial assets and financial liabilities measured at fair value and the fair value hierarchy, refer to pages 135 to 142 in Note 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated. During the six months ended June 30, 2017 , approximately $9 million of assets were transferred between levels 1 and 2. No transfers of financial assets or liabilities between levels 1 and 2 occurred during the year ended December 31, 2016 . Fair-Value Measurements on a Recurring Basis as of June 30, 2017 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 39 $ — $ — $ 39 Non-U.S. government securities 383 114 — 497 Other — 360 — 360 Total trading account assets 422 474 — 896 AFS Investment securities: U.S. Treasury and federal agencies: Direct obligations 231 402 — 633 Mortgage-backed securities — 11,414 — 11,414 Asset-backed securities: Student loans — 5,887 — 5,887 Credit cards — 1,556 — 1,556 Sub-prime — 243 — 243 Other (2) — 209 951 1,160 Total asset-backed securities — 7,895 951 8,846 Non-U.S. debt securities: Mortgage-backed securities — 6,962 — 6,962 Asset-backed securities — 2,828 63 2,891 Government securities — 6,600 — 6,600 Other (3) — 6,002 274 6,276 Total non-U.S. debt securities — 22,392 337 22,729 State and political subdivisions — 10,000 38 10,038 Collateralized mortgage obligations — 2,443 — 2,443 Other U.S. debt securities — 2,780 19 2,799 U.S. equity securities — 45 — 45 Non-U.S. equity securities — 1 — 1 U.S. money-market mutual funds — 77 — 77 Total investment securities available-for-sale 231 57,449 1,345 59,025 Other assets: Derivative instruments: Foreign exchange contracts — 13,366 5 $ (9,243 ) 4,128 Total derivative instruments — 13,366 5 (9,243 ) 4,128 Other 56 — — — 56 Total assets carried at fair value $ 709 $ 71,289 $ 1,350 $ (9,243 ) $ 64,105 Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts $ — $ 13,309 $ 3 $ (7,337 ) $ 5,975 Interest-rate contracts 15 109 — (2 ) 122 Other derivative contracts — 356 — — 356 Total derivative instruments 15 13,774 3 (7,339 ) 6,453 Other 56 — — — 56 Total liabilities carried at fair value $ 71 $ 13,774 $ 3 $ (7,339 ) $ 6,509 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $3,097 million and $1,193 million , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of June 30, 2017 , the fair value of other asset-backed securities was primarily composed of $1,160 million of collateralized loan obligations. (3) As of June 30, 2017 , the fair value of other non-U.S. debt securities was primarily composed of $3,968 million of covered bonds and $1,264 million of corporate bonds. Fair-Value Measurements on a Recurring Basis as of December 31, 2016 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 30 $ — $ — $ 30 Non-U.S. government securities 495 174 — 669 Other — 325 — 325 Total trading account assets 525 499 — 1,024 AFS Investment securities: U.S. Treasury and federal agencies: Direct obligations 3,824 439 — 4,263 Mortgage-backed securities — 13,257 — 13,257 Asset-backed securities: Student loans — 5,499 97 5,596 Credit cards — 1,351 — 1,351 Sub-prime — 272 — 272 Other (2) — — 905 905 Total asset-backed securities — 7,122 1,002 8,124 Non-U.S. debt securities: Mortgage-backed securities — 6,535 — 6,535 Asset-backed securities — 2,484 32 2,516 Government securities — 5,836 — 5,836 Other (3) — 5,365 248 5,613 Total non-U.S. debt securities — 20,220 280 20,500 State and political subdivisions — 10,283 39 10,322 Collateralized mortgage obligations — 2,577 16 2,593 Other U.S. debt securities — 2,469 — 2,469 U.S. equity securities — 42 — 42 Non-U.S. equity securities — 3 — 3 U.S. money-market mutual funds — 409 — 409 Non-U.S. money-market mutual funds — 16 — 16 Total investment securities available-for-sale 3,824 56,837 1,337 61,998 Other assets: Derivatives instruments: Foreign exchange contracts — 16,476 8 $ (9,163 ) 7,321 Interest-rate contracts — 68 — (68 ) — Total derivative instruments — 16,544 8 (9,231 ) 7,321 Total assets carried at fair value $ 4,349 $ 73,880 $ 1,345 $ (9,231 ) $ 70,343 Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts $ — $ 15,948 $ 8 $ (10,456 ) $ 5,500 Interest-rate contracts — 348 — (226 ) 122 Other derivative contracts — 380 — — 380 Total derivative instruments — 16,676 8 (10,682 ) 6,002 Total liabilities carried at fair value $ — $ 16,676 $ 8 $ (10,682 ) $ 6,002 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $906 million and $2,356 million , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2016 , the fair value of other asset-backed securities was primarily composed of $905 million of collateralized loan obligations. (3) As of December 31, 2016 , the fair value of other non-U.S. debt securities was primarily composed of $3,769 million of covered bonds and $988 million of corporate bonds. The following tables present activity related to our level 3 financial assets during the three and six months ended June 30, 2017 and 2016 , respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the three and six months ended June 30, 2017 and 2016 , transfers out of level 3 were mainly related to certain mortgage- and asset-backed securities, including non-U.S. debt securities, for which fair value was measured using prices for which observable market information became available. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended June 30, 2017 Fair Value as of Total Realized and Purchases Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of Change in (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: Asset-backed securities: Student loans $ 99 $ — $ — $ — $ — $ — $ (99 ) $ — Other 771 1 (1 ) 199 (120 ) 101 — 951 Total asset-backed securities 870 1 (1 ) 199 (120 ) 101 (99 ) 951 Non-U.S. debt securities: Asset-backed securities 59 1 (1 ) — (16 ) 51 (31 ) 63 Other 256 — — — 18 — — 274 Total Non-U.S. debt securities 315 1 (1 ) — 2 51 (31 ) 337 State and political subdivisions 39 — — — (1 ) — — 38 Collateralized mortgage obligations 39 — — — — — (39 ) — Other U.S. debt securities — — — 19 — — — 19 Total AFS investment securities 1,263 2 (2 ) 218 (119 ) 152 (169 ) 1,345 Other assets: Derivative instruments: Foreign exchange contracts 2 1 — 2 — — — 5 $ 2 Total derivative instruments 2 1 — 2 — — — 5 2 Total assets carried at fair value $ 1,265 $ 3 $ (2 ) $ 220 $ (119 ) $ 152 $ (169 ) $ 1,350 $ 2 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. Fair Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2017 Fair Value as of Total Realized and Purchases Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of June 30, 2017 Change in (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: Asset-backed securities: Student loans $ 97 $ — $ 2 $ — $ — $ — $ (99 ) $ — Other 905 2 (1 ) 354 (410 ) 101 — 951 Total asset-backed securities 1,002 2 1 354 (410 ) 101 (99 ) 951 Non-U.S. debt securities: Asset-backed securities 32 1 (1 ) 31 (20 ) 51 (31 ) 63 Other 248 — — 5 21 — — 274 Total Non-U.S. debt securities 280 1 (1 ) 36 1 51 (31 ) 337 State and political subdivisions 39 — — — (1 ) — — 38 Collateralized mortgage obligations 16 — — 23 — — (39 ) — Other U.S. debt securities — — — 19 — — — 19 Total AFS investment securities 1,337 3 — 432 (410 ) 152 (169 ) 1,345 Other assets: Derivative instruments: Foreign exchange contracts 8 (6 ) — 7 (4 ) — — 5 $ 2 Total derivative instruments 8 (6 ) — 7 (4 ) — — 5 2 Total assets carried at fair value $ 1,345 $ (3 ) $ — $ 439 $ (414 ) $ 152 $ (169 ) $ 1,350 $ 2 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. Fair-Value Measurements Using Significant Unobservable Inputs Three Months Ended June 30, 2016 Fair Value as of March 31, Total Realized and Purchases Settlements Transfers Fair Value as of June 30, 2016 (2) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2016 (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: U.S. Treasury and federal agencies, mortgage-backed securities $ 300 $ — $ — $ — $ — $ (275 ) $ 25 Asset-backed securities: Student loans 186 1 3 — — — 190 Other 1,813 9 (2 ) 19 (129 ) — 1,710 Total asset-backed securities 1,999 10 1 19 (129 ) — 1,900 Non-U.S. debt securities: Asset-backed securities 127 — — 53 (16 ) (53 ) 111 Other 295 — 2 (7 ) (29 ) 261 Total non-U.S. debt securities 422 — 2 53 (23 ) (82 ) 372 State and political subdivisions 32 — 1 — — — 33 Collateralized mortgage obligations 82 — — — (14 ) — 68 Total AFS investment securities 2,835 10 4 72 (166 ) (357 ) 2,398 Total assets carried at fair value $ 2,835 $ 10 $ 4 $ 72 $ (166 ) $ (357 ) $ 2,398 $ — (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. (2) There were no transfers of assets into level 3 during the three months ended June 30, 2016 . Fair-Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2016 Fair Value as of December 31, 2015 Total Realized and Purchases Settlements Transfers Fair Value as of June 30, 2016 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2016 (In millions) Recorded Recorded Assets: AFS Investment securities: U.S. Treasury and federal agencies, mortgage-backed securities $ — $ — $ — $ 300 $ — $ (275 ) $ 25 Asset-backed securities: Student loans 189 1 — — — — 190 Other 1,764 16 (13 ) 132 (189 ) — 1,710 Total asset-backed securities 1,953 17 (13 ) 132 (189 ) — 1,900 Non-U.S. debt securities: Asset-backed securities 174 — (1 ) 107 (34 ) (135 ) 111 Other 255 — — 29 6 (29 ) 261 Total non-U.S. debt securities 429 — (1 ) 136 (28 ) (164 ) 372 State and political subdivisions 33 — 1 — (1 ) — 33 Collateralized mortgage obligations 39 — — 50 (21 ) — 68 Other U.S. debt securities 10 — — — (10 ) — — Total AFS investment securities 2,464 17 (13 ) 618 (249 ) (439 ) 2,398 Other assets: Derivative instruments: Foreign exchange contracts 5 3 — — (8 ) — — $ — Total derivative instruments 5 3 — — (8 ) — — — Total assets carried at fair value $ 2,469 $ 20 $ (13 ) $ 618 $ (257 ) $ (439 ) $ 2,398 $ — Fair-Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2016 Fair Value as of December 31, 2015 Total Realized and Settlements Fair Value as of June 30, 2016 (2) Change in Unrealized (In millions) Recorded in Revenue Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts $ 5 $ 5 $ (10 ) $ — $ — Total derivative instruments 5 5 (10 ) — — Total liabilities carried at fair value $ 5 $ 5 $ (10 ) $ — $ — (1) There were no transfers of assets into level 3 during the six months ended June 30, 2016 . (2) There were no transfers of liabilities into or out of level 3 during the six months ended June 30, 2016 . The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer. Quantitative Information about Level 3 Fair-Value Measurements Fair Value Weighted-Average (Dollars in millions) As of June 30, 2017 As of December 31, 2016 Valuation Technique Significant (1) As of June 30, 2017 As of December 31, 2016 Significant unobservable inputs readily available to State Street: Assets: Asset-backed securities, other $ — $ 1 Discounted cash flows Credit spread — % 0.3 % State and political subdivisions 38 39 Discounted cash flows Credit spread 1.9 1.8 Derivative instruments, foreign exchange contracts 5 8 Option model Volatility 7.1 14.4 Total $ 43 $ 48 Liabilities: Derivative instruments, foreign exchange contracts $ 3 $ 8 Option model Volatility 6.4 14.4 Total $ 3 $ 8 (1) Significant chan ges in these unobservable inputs would result in significant changes in fair value measurement. Fair Value Estimates: Estimates of fair value for financial instruments not carried at fair value on a recurring basis in our consolidated statement of condition are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair-value hierarchy, as of the dates indicated. Fair-Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) June 30, 2017 Financial Assets: Cash and due from banks $ 3,156 $ 3,156 $ 3,156 $ — $ — Interest-bearing deposits with banks 63,617 63,617 — 63,617 — Securities purchased under resale agreements 3,172 3,172 — 3,172 — Investment securities held-to-maturity 36,230 36,169 17,392 18,651 126 Net loans (excluding leases) 23,547 23,545 — 23,486 59 Financial Liabilities: Deposits: Non-interest-bearing $ 50,957 $ 50,957 $ — $ 50,957 $ — Interest-bearing - U.S. 24,438 24,438 — 24,438 — Interest-bearing - non-U.S. 106,021 106,021 — 106,021 — Securities sold under repurchase agreements 3,856 3,856 — 3,856 — Other short-term borrowings 1,465 1,465 — 1,465 — Long-term debt 11,737 12,022 — 11,710 312 Fair-Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) December 31, 2016 Financial Assets: Cash and due from banks $ 1,314 $ 1,314 $ 1,314 $ — $ — Interest-bearing deposits with banks 70,935 70,935 — 70,935 — Securities purchased under resale agreements 1,956 1,956 — 1,956 — Investment securities held-to-maturity 35,169 34,994 17,400 17,439 155 Net loans (excluding leases) 18,862 18,877 — 18,781 96 Financial Liabilities: Deposits: Non-interest-bearing $ 59,397 $ 59,397 $ — $ 59,397 $ — Interest-bearing - U.S. 30,911 30,911 — 30,911 — Interest-bearing - non-U.S. 96,855 96,855 — 96,855 — Securities sold under repurchase agreements 4,400 4,400 — 4,400 — Other short-term borrowings 1,585 1,585 — 1,585 — Long-term debt 11,430 11,618 — 11,282 336 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Investment securities held by us are classified as either trading, AFS , or HTM at the time of purchase and reassessed periodically, based on management’s intent. Generally, trading assets are debt and equity securities purchased in connection with our trading activities and, as such, are expected to be sold in the near term. Our trading activities typically involve active and frequent buying and selling with the objective of generating profits on short-term movements. AFS investment securities are those securities that we intend to hold for an indefinite period of time. AFS investment securities include securities utilized as part of our asset-and-liability management activities that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. HTM securities are debt securities that management has the intent and the ability to hold to maturity. Trading assets are carried at fair value. Both realized and unrealized gains and losses on trading assets are recorded in trading services revenue in our consolidated statement of income. Debt and marketable equity securities classified as AFS are carried at fair value, and after-tax net unrealized gains and losses are recorded in AOCI. Gains or losses realized on sales of AFS investment securities are computed using the specific identification method and are recorded in gains (losses) related to investment securities, net, in our consolidated statement of income. HTM investment securities are carried at cost, adjusted for amortization of premiums and accretion of discounts. The following table presents the amortized cost and fair value, and associated unrealized gains and losses, of investment securities as of the dates indicated: June 30, 2017 December 31, 2016 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value (In millions) Gains Losses Gains Losses Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 632 $ 3 $ 2 $ 633 $ 4,265 $ 7 $ 9 $ 4,263 Mortgage-backed securities 11,445 61 92 11,414 13,340 76 159 13,257 Asset-backed securities: Student loans (1) 5,871 36 20 5,887 5,659 12 75 5,596 Credit cards 1,575 3 22 1,556 1,377 — 26 1,351 Sub-prime 249 2 8 243 289 1 18 272 Other (2) 1,154 6 — 1,160 895 10 — 905 Total asset-backed securities 8,849 47 50 8,846 8,220 23 119 8,124 Non-U.S. debt securities: Mortgage-backed securities 6,925 40 3 6,962 6,506 35 6 6,535 Asset-backed securities 2,884 7 — 2,891 2,513 4 1 2,516 Government securities 6,614 6 20 6,600 5,834 8 6 5,836 Other (3) 6,247 34 5 6,276 5,587 31 5 5,613 Total non-U.S. debt securities 22,670 87 28 22,729 20,440 78 18 20,500 State and political subdivisions 9,747 328 37 10,038 10,233 201 112 10,322 Collateralized mortgage obligations 2,449 21 27 2,443 2,610 18 35 2,593 Other U.S. debt securities 2,804 17 22 2,799 2,481 18 30 2,469 U.S. equity securities 40 7 2 45 39 6 3 42 Non-U.S. equity securities 1 — — 1 3 — — 3 U.S. money-market mutual funds 77 — — 77 409 — — 409 Non-U.S. money-market mutual funds — — — — 16 — — 16 Total $ 58,714 $ 571 $ 260 $ 59,025 $ 62,056 $ 427 $ 485 $ 61,998 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 17,479 $ 27 $ 35 $ 17,471 $ 17,527 $ 17 $ 58 $ 17,486 Mortgage-backed securities 11,937 35 200 11,772 10,334 20 221 10,133 Asset-backed securities: Student loans (1) 2,738 17 15 2,740 2,883 5 30 2,858 Credit cards 858 3 — 861 897 2 — 899 Other 5 — — 5 35 — — 35 Total asset-backed securities 3,601 20 15 3,606 3,815 7 30 3,792 Non-U.S. debt securities: Mortgage-backed securities 1,084 80 10 1,154 1,150 70 15 1,205 Asset-backed securities 365 1 — 366 531 — — 531 Government securities 357 2 — 359 286 3 — 289 Other 122 — — 122 113 1 — 114 Total non-U.S. debt securities 1,928 83 10 2,001 2,080 74 15 2,139 Collateralized mortgage obligations 1,285 41 7 1,319 1,413 42 11 1,444 Total $ 36,230 $ 206 $ 267 $ 36,169 $ 35,169 $ 160 $ 335 $ 34,994 (1) Primarily composed of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans. (2) As of June 30, 2017 and December 31, 2016 , the fair value of other ABS was primarily composed of $1,160 million and $905 million , respectively, of collateralized loan obligations. (3) As of June 30, 2017 and December 31, 2016 , the fair value of other non-U.S. debt securities was primarily composed of $3,968 million and $3,769 million , respectively, of covered bonds and $1,264 million and $988 million , as of June 30, 2017 and December 31, 2016 , respectively, of corporate bonds. Aggregate investment securities with carrying values of approximately $52 billion and $46 billion as of June 30, 2017 and December 31, 2016 , respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law. In the first quarter of 2017 , we sold $2.7 billion of AFS, primarily Agency MBS and U.S. Treasury securities in our investment portfolio, in response to the current interest rate environment resulting in a pre-tax loss of $40 million . The following tables present the aggregate fair values of investment securities that have been in a continuous unrealized loss position for less than 12 months , and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated: Less than 12 months 12 months or longer Total June 30, 2017 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 154 $ 1 $ 164 $ 1 $ 318 $ 2 Mortgage-backed securities 5,877 83 536 9 6,413 92 Asset-backed securities: Student loans 233 1 2,449 19 2,682 20 Credit cards — — 498 22 498 22 Sub-prime — — 216 8 216 8 Total asset-backed securities 233 1 3,163 49 3,396 50 Non-U.S. debt securities: Mortgage-backed securities 342 1 648 2 990 3 Government securities 4,471 20 — — 4,471 20 Other 728 5 — — 728 5 Total non-U.S. debt securities 5,541 26 648 2 6,189 28 State and political subdivisions 1,636 33 224 4 1,860 37 Collateralized mortgage obligations 906 23 171 4 1,077 27 Other U.S. debt securities 1,147 18 159 4 1,306 22 U.S. equity securities — — 6 2 6 2 Total $ 15,494 $ 185 $ 5,071 $ 75 $ 20,565 $ 260 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 9,025 $ 34 $ 79 $ 1 $ 9,104 $ 35 Mortgage-backed securities 6,901 200 — — 6,901 200 Asset-backed securities: Student loans 619 8 728 7 1,347 15 Total asset-backed securities 619 8 728 7 1,347 15 Non-U.S. debt securities: Mortgage-backed securities — — 290 10 290 10 Total non-U.S. debt securities — — 290 10 290 10 Collateralized mortgage obligations 437 2 182 5 619 7 Total $ 16,982 $ 244 $ 1,279 $ 23 $ 18,261 $ 267 Less than 12 months 12 months or longer Total December 31, 2016 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 651 $ 8 $ 180 $ 1 $ 831 $ 9 Mortgage-backed securities 7,072 131 1,114 28 8,186 159 Asset-backed securities: Student loans 54 — 3,745 75 3,799 75 Credit cards 795 1 494 25 1,289 26 Sub-prime 1 — 252 18 253 18 Other 75 — — — 75 — Total asset-backed securities 925 1 4,491 118 5,416 119 Non-U.S. debt securities: Mortgage-backed securities 442 1 893 5 1,335 6 Asset-backed securities 253 — 276 1 529 1 Government securities 1,314 6 — — 1,314 6 Other 670 4 218 1 888 5 Total non-U.S. debt securities 2,679 11 1,387 7 4,066 18 State and political subdivisions 3,390 102 304 10 3,694 112 Collateralized mortgage obligations 1,259 31 162 4 1,421 35 Other U.S. debt securities 944 24 157 6 1,101 30 U.S. equity securities 8 — 5 3 13 3 Total $ 16,928 $ 308 $ 7,800 $ 177 $ 24,728 $ 485 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 8,891 $ 57 $ 86 $ 1 $ 8,977 $ 58 Mortgage-backed securities 6,838 221 — — 6,838 221 Asset-backed securities: Student loans 705 9 1,235 21 1,940 30 Credit cards 33 — — — 33 — Other 18 — 9 — 27 — Total asset-backed securities 756 9 1,244 21 2,000 30 Non-U.S. debt securities: Mortgage-backed securities 54 2 330 13 384 15 Asset-backed securities 28 — 35 — 63 — Government securities 180 — — — 180 — Total non-U.S. debt securities 262 2 365 13 627 15 Collateralized mortgage obligations 537 4 204 7 741 11 Total $ 17,284 $ 293 $ 1,899 $ 42 $ 19,183 $ 335 The following table presents contractual maturities of debt investment securities by carrying amount as of June 30, 2017 . The maturities of certain asset-backed securities, mortgage-backed securities, and collateralized mortgage obligations are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties. Under 1 Year 1 to 5 Years 6 to 10 Years Over 10 Years Total (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 231 $ 8 $ 52 $ 342 $ 633 Mortgage-backed securities 254 1,463 3,241 6,456 11,414 Asset-backed securities: Student loans 915 2,415 894 1,663 5,887 Credit cards — 1,006 550 — 1,556 Sub-prime — 2 2 239 243 Other — 122 1,038 — 1,160 Total asset-backed securities 915 3,545 2,484 1,902 8,846 Non-U.S. debt securities: Mortgage-backed securities 1,152 3,909 964 937 6,962 Asset-backed securities 370 2,261 260 — 2,891 Government securities 3,144 2,255 1,201 — 6,600 Other 2,030 3,535 711 — 6,276 Total non-U.S. debt securities 6,696 11,960 3,136 937 22,729 State and political subdivisions 398 2,493 5,181 1,966 10,038 Collateralized mortgage obligations — 158 771 1,514 2,443 Other U.S. debt securities 507 924 1,368 — 2,799 Total $ 9,001 $ 20,551 $ 16,233 $ 13,117 $ 58,902 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 1,199 $ 15,800 $ 414 $ 66 $ 17,479 Mortgage-backed securities — 182 1,386 10,369 11,937 Asset-backed securities: Student loans 307 246 291 1,894 2,738 Credit cards 124 734 — — 858 Other — 4 — 1 5 Total asset-backed securities 431 984 291 1,895 3,601 Non-U.S. debt securities: Mortgage-backed securities 223 242 51 568 1,084 Asset-backed securities 127 238 — — 365 Government securities 242 115 — — 357 Other 76 46 — — 122 Total non-U.S. debt securities 668 641 51 568 1,928 Collateralized mortgage obligations 7 15 483 780 1,285 Total $ 2,305 $ 17,622 $ 2,625 $ 13,678 $ 36,230 The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated. Six Months Ended June 30, (In millions) 2017 2016 Balance, beginning of period $ 66 $ 92 Additions: Losses for which OTTI was not previously recognized — 1 Deductions: Previously recognized losses related to securities sold or matured (2 ) (2 ) Balance, end of period $ 64 $ 91 Interest income related to debt securities is recognized in our consolidated statement of income using the effective interest method, or on a basis approximating a level rate of return over the contractual or estimated life of the security. The level rate of return considers any non-refundable fees or costs, as well as purchase premiums or discounts, resulting in amortization or accretion, accordingly. For debt securities acquired for which we consider it probable as of the date of acquisition that we will be unable to collect all contractually required principal, interest and other payments, the excess of our estimate of undiscounted future cash flows from these securities over their initial recorded investment is accreted into interest income on a level-yield basis over the securities’ estimated remaining terms. Subsequent decreases in these securities’ expected future cash flows are either recognized prospectively through an adjustment of the yields on the securities over their remaining terms, or are evaluated for other-than-temporary impairment. Increases in expected future cash flows are recognized prospectively over the securities’ estimated remaining terms through the recalculation of their yields. For certain debt securities acquired which are considered to be beneficial interests in securitized financial assets, the excess of our estimate of undiscounted future cash flows from these securities over their initial recorded investment is accreted into interest income on a level-yield basis over the securities’ estimated remaining terms. Subsequent decreases in these securities’ expected future cash flows are either recognized prospectively through an adjustment of the yields on the securities over their remaining terms, or are evaluated for OTTI. Increases in expected future cash flows are recognized prospectively over the securities’ estimated remaining terms through the recalculation of their yields. Impairment: We conduct periodic reviews of individual securities to assess whether OTTI exists. For additional information about the review of securities for impairment, refer to pages 149 to 152 in Note 3 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. We recorded less than $1 million of OTTI in the six months ended June 30, 2017 and $1 million of OTTI in the six months ended June 30, 2016 , which resulted from adverse changes in the timing of expected future cash flows from the securities. After a review of the investment portfolio, taking into consideration current economic conditions, adverse situations that might affect our ability to fully collect principal and interest, the timing of future payments, the credit quality and performance of the collateral underlying mortgage- and asset-backed securities and other relevant factors, management considers the aggregate decline in fair value of the investment securities portfolio and the resulting gross pre-tax unrealized losses of $527 million related to 1,309 securities as of June 30, 2017 to be temporary, and not the result of any material changes in the credit characteristics of the securities. |
Loans and Leases
Loans and Leases | 6 Months Ended |
Jun. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Leases | Loans and Leases We segregate our loans and leases into three segments: commercial and financial loans, commercial real estate loans, and lease financing. We further classify commercial and financial loans as loans to investment funds, senior secured bank loans, loans to municipalities, and other. These classifications reflect their risk characteristics, their initial measurement attributes and the methods we use to monitor and assess credit risk. For additional information on our loans and leases, including our internal risk-rating system used to assess our risk of credit loss for each loan or lease, refer to pages 152 to 155 in Note 4 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. The following table presents our recorded investment in loans and leases, by segment, as of the dates indicated: (In millions) June 30, 2017 December 31, 2016 Domestic: Commercial and financial: Loans to investment funds $ 13,795 $ 11,734 Senior secured bank loans 3,464 3,256 Loans to municipalities 1,909 1,352 Other 59 70 Commercial real estate — 27 Lease financing 297 338 Total domestic 19,524 16,777 Non-U.S.: Commercial and financial: Loans to investment funds 4,051 2,224 Senior secured bank loans 323 252 Lease financing 463 504 Total non-U.S. 4,837 2,980 Total loans and leases 24,361 19,757 Allowance for loan and lease losses (54 ) (53 ) Loans and leases, net of allowance $ 24,307 $ 19,704 The commercial and financial segment is composed of primarily floating-rate loans to mutual fund clients, purchased senior secured bank loans, and loans to municipalities. Investment fund lending is composed of short-duration revolving credit lines providing liquidity to fund clients in support of their transaction flows associated with securities' settlement activities. Certain loans are pledged as collateral for access to the Federal Reserve's discount window. As of June 30, 2017 and December 31, 2016 , the loans pledged as collateral totaled $2.1 billion and $1.5 billion , respectively. The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated: June 30, 2017 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 19,184 $ — $ 760 $ 19,944 Speculative (2) 4,417 — — 4,417 Total $ 23,601 $ — $ 760 $ 24,361 December 31, 2016 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 14,889 $ 27 $ 842 $ 15,758 Speculative (2) 3,984 — — 3,984 Substandard (3) 15 — — 15 Total $ 18,888 $ 27 $ 842 $ 19,757 (1) Investment-grade loans and leases consist of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment. (2) Speculative loans and leases consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met. (3) Substandard loans and leases consist of counterparties with well-defined weakness that jeopardizes repayment with the possibility we will sustain some loss. The following table presents our recorded investment in loans and leases, disaggregated based on our impairment methodology, as of the dates indicated: June 30, 2017 December 31, 2016 (In millions) Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases Loans and leases (1) : Individually evaluated for impairment $ — $ — $ — $ — $ 15 $ — $ — $ 15 Collectively evaluated for impairment 23,601 — 760 24,361 18,873 27 842 19,742 Total $ 23,601 $ — $ 760 $ 24,361 $ 18,888 $ 27 $ 842 $ 19,757 (1) For those portfolios where there are a small number of loans each with a large balance, we review each loan annually for indicators of impairment. For those loans where no such indicators are identified, the loans are collectively evaluated for impairment. As of June 30, 2017 , no loans were individually evaluated for impairment. As of December 31, 2016 , $0.2 million of the allowance for loan and lease loss related to commercial and financial loans were individually evaluated for impairment. As of June 30, 2017 , we had no impaired loans and leases. As of December 31, 2016 , we identified one commercial and financial loan as impaired, with both a recorded investment and unpaid principal balance of $15 million . The impaired loan had zero related interest income and an associated allowance for loan losses of $0.2 million . In certain circumstances, we restructure troubled loans by granting concessions to borrowers experiencing financial difficulty. Once restructured, the loans are generally considered impaired until their maturity, regardless of whether the borrowers perform under the modified terms of the loans. There were no loans modified in troubled debt restructurings during the six months ended June 30, 2017 and the year ended December 31, 2016 . As of June 30, 2017 , there were no loans or leases on non-accrual status. As of December 31, 2016 , there was one commercial and financial loan on non-accrual status and no CRE loans or leases were on non-accrual status. There were no loans and leases 90 days or more contractually past due as of June 30, 2017 and December 31, 2016 . Allowance for loan and lease losses The following table presents activity in the allowance for loan and lease losses for the periods indicated: Three Months Ended June 30, 2017 2016 (In millions) Total Loans and Leases Total Loans and Leases Allowance for loan and lease losses (1) : Beginning balance $ 51 $ 47 Provision for loan and lease losses 3 4 Charge-offs — — Ending balance $ 54 $ 51 Six Months Ended June 30, 2017 2016 (In millions) Total Loans and Leases Total Loans and Leases Allowance for loan and lease losses (1) : Beginning balance $ 53 $ 46 Provision for loan and lease losses 1 8 Charge-offs — (3 ) Ending balance $ 54 $ 51 (1) The provisions and charge-offs for loans and leases were attributable to exposure to senior secured loans to non-investment grade borrowers, purchased in connection with our participation in syndicated loans. Loans and leases are reviewed on a regular basis, and any provisions for loan and lease losses that are recorded reflect management's estimate of the amount necessary to maintain the allowance for loan and lease losses at a level considered appropriate to absorb estimated incurred losses in the loan and lease portfolio. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table presents changes in the carrying amount of goodwill during the periods indicated: June 30, 2017 December 31, 2016 (In millions) Investment Servicing Investment Management Total Investment Servicing Investment Management Total Goodwill: Beginning balance $ 5,550 $ 264 $ 5,814 $ 5,641 $ 30 $ 5,671 Acquisitions (1) 17 — 17 — 236 236 Divestitures and other reductions (3 ) — (3 ) (11 ) — (11 ) Foreign currency translation 114 3 117 (80 ) (2 ) (82 ) Ending balance $ 5,678 $ 267 $ 5,945 $ 5,550 $ 264 $ 5,814 (1) Investment Management includes our acquisition of GEAM on July 1, 2016. The following table presents changes in the net carrying amount of other intangible assets during the periods indicated: June 30, 2017 December 31, 2016 (In millions) Investment Servicing Investment Management Total Investment Servicing Investment Management Total Other intangible assets: Beginning balance $ 1,539 $ 211 $ 1,750 $ 1,753 $ 15 $ 1,768 Acquisitions (1) 11 — 11 — 217 217 Divestitures (6 ) — (6 ) (8 ) — (8 ) Amortization (91 ) (15 ) (106 ) (186 ) (21 ) (207 ) Foreign currency translation and other, net 44 — 44 (20 ) — (20 ) Ending balance $ 1,497 $ 196 $ 1,693 $ 1,539 $ 211 $ 1,750 (1) Investment Management includes our acquisition of GEAM on July 1, 2016. The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated: June 30, 2017 December 31, 2016 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other intangible assets: Client relationships $ 2,621 $ (1,352 ) $ 1,269 $ 2,620 $ (1,306 ) $ 1,314 Core deposits 676 (299 ) 377 661 (277 ) 384 Other 132 (85 ) 47 132 (80 ) 52 Total $ 3,429 $ (1,736 ) $ 1,693 $ 3,413 $ (1,663 ) $ 1,750 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2017 | |
Other Assets [Abstract] | |
Other Assets | Other Assets The following table presents the components of other assets as of the dates indicated: (In millions) June 30, 2017 December 31, 2016 Receivable - securities lending (1) $ 22,531 $ 21,204 Derivative instruments, net 4,128 7,321 Bank-owned life insurance 3,197 3,158 Investments in joint ventures and other unconsolidated entities 2,115 2,363 Collateral, net 726 2,236 Accounts receivable 719 886 Prepaid expenses 475 333 Receivable for securities settlement 420 40 Income taxes receivable 221 106 Deferred tax assets, net of valuation allowance (2) 211 210 Deposits with clearing organizations 117 132 Other (3) 431 339 Total $ 35,291 $ 38,328 (1) Refer to Note 8 for further information on the impact of collateral on our financial statement presentation of securities borrowing transactions. (2) Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction. (3) Includes amounts held in escrow accounts at third parties related to the negotiated settlements in the transition management legal matter presented in Note 10. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative financial instruments to support our clients' needs and to manage our interest-rate and currency risk. In undertaking these activities, we assume positions in both the foreign exchange and interest-rate markets by buying and selling cash instruments and using derivative financial instruments, including foreign exchange forward contracts, foreign exchange options and interest-rate contracts. For information on our derivative instruments, including the related accounting policies, refer to pages 160 to 166 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. Derivative financial instruments are also subject to credit and counterparty risk, which we manage by performing credit reviews, maintaining individual counterparty limits, entering into netting arrangements and requiring the receipt of collateral. Cash collateral received from and provided to counterparties in connection with derivative financial instruments is recorded in accrued expenses and other liabilities and other assets, respectively, in our consolidated statement of condition. As of June 30, 2017 and December 31, 2016 , we had recorded approximately $3.51 billion and $1.99 billion , respectively, of cash collateral received from counterparties and approximately $1.83 billion and $4.39 billion , respectively, of cash collateral provided to counterparties in connection with derivative financial instruments in our consolidated statement of condition. Certain of our derivative assets and liabilities as of June 30, 2017 and December 31, 2016 are subject to master netting agreements with our derivative counterparties. Certain of these agreements contain credit risk-related contingent features in which the counterparty has the right to declare us in default and accelerate cash settlement of our net derivative liabilities with the counterparty in the event that our credit rating falls below specified levels. The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a net liability position as of June 30, 2017 totaled approximately $1.51 billion , against which we provided $1 million of underlying collateral. If our credit rating were downgraded below levels specified in the agreements, the maximum additional amount of payments related to termination events that could have been required pursuant to these contingent features, assuming no change in fair value, as of June 30, 2017 was approximately $1.51 billion . Such accelerated settlement would be at fair value and therefore not affect our consolidated results of operations. Derivatives Not Designated as Hedging Instruments: In connection with our trading activities, we use derivative financial instruments in our role as a financial intermediary and as both a manager and servicer of financial assets, in order to accommodate our clients' investment and risk management needs. In addition, we use derivative financial instruments for risk management purposes as economic hedges, which are not formally designated as accounting hedges, in order to contribute to our overall corporate earnings and liquidity. These activities are designed to generate trading services revenue and to manage volatility in our NII. The level of market risk that we assume is a function of our overall objectives and liquidity needs, our clients' requirements and market volatility. For additional information on derivative not designated as hedging instruments, refer to pages 161 to 162 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. Derivatives Designated as Hedging Instruments: In connection with our asset-and-liability management activities, we use derivative financial instruments to manage our interest rate risk and foreign currency risk. Interest rate risk, defined as the sensitivity of income or financial condition to variations in interest rates, is a significant non-trading market risk to which our assets and liabilities are exposed. We manage our interest rate risk by identifying, quantifying and hedging our exposures, using fixed-rate portfolio securities and a variety of derivative financial instruments, most frequently interest-rate swaps. Interest rate swap agreements alter the interest-rate characteristics of specific balance sheet assets or liabilities. We use foreign exchange forward and swap contracts to hedge foreign exchange exposure to various foreign currencies with respect to certain assets and liabilities. Our hedging relationships are formally designated, and qualify for hedge accounting, as fair value, cash flow or net investment hedges. For additional information on derivatives designated as hedging instruments, refer to pages 162 to 166 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. Fair Value Hedges We have entered into interest rate swap agreements to modify our interest income from certain AFS investment securities from a fixed rate to a floating rate. The hedged AFS investment securities included hedged trusts that had a weighted-average life of approximately 4.3 years as of June 30, 2017 , compared to 4.5 years as of December 31, 2016 . We have entered into interest rate swap agreements to modify our interest expense on eight senior notes and one subordinated note from fixed rates to floating rates. The senior and subordinated notes are hedged with interest rate swap contracts with notional amounts, maturities and fixed-rate coupon terms that effectively hedge the fixed-rate notes. The table below summarizes the maturities and the paid fixed interest rates for the hedged senior and subordinated notes: June 30, 2017 Maturity Paid Fixed Interest Rate Senior Notes 2020 2.55% 2021 4.38 2021 1.95 2022 2.65 2023 3.70 2024 3.30 2025 3.55 2026 2.65 Subordinated Notes 2023 3.10 We have entered into foreign exchange swap contracts to hedge the change in fair value attributable to foreign exchange movements in our foreign currency denominated investment securities and deposits. These forward contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the fair value of the securities and deposits attributable to changes in foreign exchange rates. Cash Flow Hedges We have entered into foreign exchange contracts to hedge the change in cash flows attributable to foreign exchange movements in foreign currency denominated investment securities. These foreign exchange contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the cash flows of the securities attributable to changes in foreign exchange rates. We have entered into an interest rate swap agreement to hedge the forecasted cash flows associated with LIBOR-indexed floating-rate loans. The interest rate swaps synthetically convert the loan interest receipts from a variable-rate to a fixed-rate, thereby mitigating the risk attributable to changes in the LIBOR benchmark rate. As of June 30, 2017 , the maximum maturity date of the underlying loans is approximately 5.0 years . Net Investment Hedges We have entered into foreign exchange contracts to protect the net investment in our foreign operations against adverse changes in exchange rates. These forward contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the fair value of our net investments in our foreign operations attributable to changes in foreign exchange rates. The changes in fair value of the foreign exchange forward contracts are recorded, net of taxes, in the foreign currency translation component of other comprehensive income. Effectiveness of net investment hedges is based on the overall changes in the fair value of the forward contracts. The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments entered into in connection with our trading and asset-and-liability management activities as of the dates indicated: (In millions) June 30, December 31, Derivatives not designated as hedging instruments: Interest-rate contracts: Futures $ 12,154 $ 13,455 Foreign exchange contracts: Forward, swap and spot 1,568,130 1,414,765 Options purchased 348 337 Options written 184 202 Futures 1 — Other: Stable value contracts 25,400 27,182 Deferred value awards (1)(2) 594 409 Derivatives designated as hedging instruments: Interest-rate contracts: Swap agreements 10,157 10,169 Foreign exchange contracts: Forward and swap 17,539 8,564 (1) Represents grants of deferred value awards to employees; refer to discussion in this note under "Derivatives Not Designated as Hedging Instruments." (2) Amount as of December 31, 2016 reflects $249 million related to the acceleration of expense associated with certain cash settled deferred incentive compensation awards. In connection with our asset-and-liability management activities, we have entered into interest-rate contracts designated as fair value and cash flow hedges to manage our interest rate risk. The following tables present the aggregate notional amounts of these interest rate contracts and the related assets or liabilities being hedged as of the dates indicated: June 30, 2017 (In millions) Fair Value Hedges Cash Total Investment securities available-for-sale $ 1,364 $ — $ 1,364 Long-term debt (1) 8,493 — 8,493 Floating-rate loans — 300 300 Total $ 9,857 $ 300 $ 10,157 December 31, 2016 (2) (In millions) Fair Value Hedges Investment securities available-for-sale $ 1,444 Long-term debt (1) 8,725 Total $ 10,169 (1) As of June 30, 2017 , these fair value hedges increased the carrying value of long-term debt presented in our consolidated statement of condition by $12 million . As of December 31, 2016 , these fair value hedges decreased the carrying value of long-term debt presented in our consolidated statement of condition by $15 million . (2) As of December 31, 2016 , there were no interest-rate contracts designated as cash flow hedges. The following table presents the contractual and weighted-average interest rates for long-term debt, which include the effects of the fair value hedges presented in the table above, for the periods indicated: Three Months Ended June 30, 2017 2016 Contractual Rates Rate Including Impact of Hedges Contractual Rates Rate Including Impact of Hedges Long-term debt 3.34 % 2.61 % 3.43 % 2.24 % Six Months Ended June 30, 2017 2016 Contractual Rate Contractual Rate Long-term debt 3.37 % 2.58 % 3.43 % 2.22 % The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8 to the consolidated financial statements in this Form 10-Q. Derivative Assets (1) Fair Value (In millions) June 30, December 31, 2016 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 13,323 $ 15,982 Total $ 13,323 $ 15,982 Derivatives designated as hedging instruments: Foreign exchange contracts $ 48 $ 502 Interest-rate contracts — 68 Total $ 48 $ 570 (1) Derivative assets are included within other assets in our consolidated statement of condition. Derivative Liabilities (1) Fair Value (In millions) June 30, December 31, 2016 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 13,166 $ 15,881 Other derivative contracts 356 380 Total $ 13,522 $ 16,261 Derivatives designated as hedging instruments: Foreign exchange contracts $ 146 $ 75 Interest-rate contracts 124 348 Total $ 270 $ 423 (1) Derivative liabilities are included within other liabilities in our consolidated statement of condition. The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Three Months Ended June 30, Six Months Ended June 30, (In millions) 2017 2016 2017 2016 Derivatives not designated as hedging instruments: Foreign exchange contracts Trading services revenue $ 170 $ 162 $ 333 $ 316 Interest-rate contracts Processing fees and other revenue — — — 1 Interest-rate contracts Trading services revenue 8 (3 ) 9 (4 ) Credit derivative contracts Trading services revenue — — — (1 ) Other derivative contracts Trading services revenue — (4 ) — (4 ) Other derivative contracts Compensation and employee benefits (29 ) 57 (95 ) 127 Total $ 149 $ 212 $ 247 $ 435 Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income Three Months Ended June 30, Three Months Ended June 30, (In millions) 2017 2016 2017 2016 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and $ 4 $ (25 ) Investment securities Processing fees and $ (4 ) $ 25 Foreign exchange contracts Processing fees and other revenue 102 (2 ) FX deposit Processing fees and other revenue (101 ) 2 Interest-rate contracts Processing fees and other revenue 3 (6 ) Available-for-sale securities Processing fees and other revenue (1) (2 ) 6 Interest-rate contracts Processing fees and 64 128 Long-term debt Processing fees and (63 ) (121 ) Total $ 173 $ 95 $ (170 ) $ (88 ) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain Six Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and $ 2 $ 19 Investment securities Processing fees and $ (2 ) $ (19 ) Foreign exchange contracts Processing fees and other revenue 1,081 246 FX deposit Processing fees and other revenue (1,081 ) (246 ) Interest-rate contracts Processing fees and 15 (36 ) Available-for-sale securities Processing fees and (2) (13 ) 37 Interest-rate contracts Processing fees and 44 376 Long-term debt Processing fees and (44 ) (361 ) Total $ 1,142 $ 605 $ (1,140 ) $ (589 ) (1) In the three months ended June 30, 2017 and 2016 , $3 million and $(3) million , respectively, of net unrealized gains (losses) on AFS investment securities designated in fair value hedges were recognized in OCI. (2) In the six months ended June 30, 2017 and 2016 , $9 million and $(22) million , respectively, of net unrealized gains (losses) on AFS investment securities designated in fair value hedges were recognized in OCI. Differences between the gains (losses) on the derivative and the gains (losses) on the hedged item, excluding any amounts recorded in NII, represent hedge ineffectiveness. Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, (In millions) 2017 2016 2017 2016 2017 2016 Derivatives designated as cash flow hedges: Interest-rate contracts $ (1 ) $ — Net interest income $ — $ — Net interest income $ — $ — Foreign exchange contracts 14 (114 ) Net interest income — — Net interest income 7 6 Total $ 13 $ (114 ) $ — $ — $ 7 $ 6 Derivatives designated as net investment hedges: Foreign exchange contracts $ (87 ) $ 51 Gains (Losses) related to investment securities, net $ — $ — Gains (Losses) related to investment securities, net $ — $ — Total $ (87 ) $ 51 $ — $ — $ — $ — Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, (In millions) 2017 2016 2017 2016 2017 2016 Derivatives designated as cash flow hedges: Interest-rate contracts $ (1 ) $ — Net interest income $ — $ — Net interest income $ — $ — Foreign exchange contracts (92 ) (227 ) Net interest income — — Net interest income 13 11 Total $ (93 ) $ (227 ) $ — $ — $ 13 $ 11 Derivatives designated as net investment hedges: Foreign exchange contracts $ (101 ) $ 51 Gains (Losses) related to investment securities, net $ — $ — Gains (Losses) related to investment securities, net $ — $ — Total $ (101 ) $ 51 $ — $ — $ — $ — |
Offsetting Arrangements
Offsetting Arrangements | 6 Months Ended |
Jun. 30, 2017 | |
Offsetting [Abstract] | |
Offsetting Arrangements | Offsetting Arrangements We manage credit and counterparty risk by entering into enforceable netting agreements and other collateral arrangements with counterparties to derivative contracts and secured financing transactions, including resale and repurchase agreements, and principal securities borrowing and lending agreements. These netting agreements mitigate our counterparty credit risk by providing for a single net settlement with a counterparty of all financial transactions covered by the agreement in an event of default as defined under such agreement. In limited cases, a netting agreement may also provide for the periodic netting of settlement payments with respect to multiple different transaction types in the normal course of business. For additional information on offsetting arrangements, refer to pages 166 to 170 in Note 11 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. As of June 30, 2017 and December 31, 2016 , the fair value of securities received as collateral from third parties where we are permitted to transfer or re-pledge the securities totaled $2.69 billion and $1.77 billion , respectively, and the fair value of the portion that had been transferred or re-pledged as of the same dates was $10.5 million and $166 million , respectively. The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated: Assets: June 30, 2017 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 13,371 $ (6,146 ) $ 7,225 $ 7,225 Cash collateral and securities netting NA (3,097 ) (3,097 ) $ (167 ) (3,264 ) Total derivatives 13,371 (9,243 ) 4,128 (167 ) 3,961 Other financial instruments: Resale agreements and securities borrowing (6) 60,700 (34,997 ) 25,703 (25,703 ) — Total derivatives and other financial instruments $ 74,071 $ (44,240 ) $ 29,831 $ (25,870 ) $ 3,961 Assets: December 31, 2016 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 16,484 $ (8,257 ) $ 8,227 $ 8,227 Interest-rate contracts 68 (68 ) — — Cash collateral and securities netting NA (906 ) (906 ) $ (247 ) (1,153 ) Total derivatives 16,552 (9,231 ) 7,321 (247 ) 7,074 Other financial instruments: Resale agreements and securities borrowing (6) 58,677 (35,517 ) 23,160 (22,939 ) 221 Total derivatives and other financial instruments $ 75,229 $ (44,748 ) $ 30,481 $ (23,186 ) $ 7,295 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which is also carried at fair value. For additional information about the measurement basis of these instruments, refer to pages 131 to 142 in Notes 1 and 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities in connection with our securities borrowing transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Included in the $25,703 million as of June 30, 2017 were $3,172 million of resale agreements and $22,531 million of collateral provided related to securities borrowing. Included in the $23,160 million as of December 31, 2016 were $1,956 million of resale agreements and $21,204 million of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Additional information about principal securities finance transactions is provided in Note 9 to the consolidated financial statements in this Form 10-Q. NA Not applicable The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated: Liabilities: June 30, 2017 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Cash and Securities Provided (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 13,312 $ (6,145 ) $ 7,167 $ 7,167 Interest-rate contracts (6) 124 (2 ) 122 122 Other derivative contracts 356 — 356 356 Cash collateral and securities netting NA (1,193 ) (1,193 ) $ (318 ) (1,511 ) Total derivatives 13,792 (7,340 ) 6,452 (318 ) 6,134 Other financial instruments: Repurchase agreements and securities lending (7) 43,168 (34,997 ) 8,171 (5,844 ) 2,327 Total derivatives and other financial instruments $ 56,960 $ (42,337 ) $ 14,623 $ (6,162 ) $ 8,461 Liabilities: December 31, 2016 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Cash and Securities Provided (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 15,956 $ (8,253 ) $ 7,703 $ 7,703 Interest-rate contracts 348 (73 ) 275 275 Other derivative contracts 380 — 380 380 Cash collateral and securities netting NA (2,356 ) (2,356 ) $ (180 ) (2,536 ) Total derivatives 16,684 (10,682 ) 6,002 (180 ) 5,822 Other financial instruments: Resale agreements and securities lending (7) 44,933 (35,517 ) 9,416 (7,059 ) 2,357 Total derivatives and other financial instruments $ 61,617 $ (46,199 ) $ 15,418 $ (7,239 ) $ 8,179 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which is also carried at fair value. For additional information about the measurement basis of these instruments, refer to pages 131 to 142 in Notes 1 and 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities provided in connection with our securities lending transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Variation margin payments presented as settlements rather than collateral. (7) Included in the $8,171 million as of June 30, 2017 were $3,856 million of repurchase agreements and $4,315 million of collateral received related to securities lending. Included in the $9,416 million as of December 31, 2016 were $4,400 million of repurchase agreements and $5,016 million of collateral received related to securities lending. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilit ies, respectively, in our consolidated statement of condition. Additional information about principal securities finance transactions is provided in Note 9 to the consolidated financial statements in this Form 10-Q. NA Not applicable The securities transferred under resale and repurchase agreements typically are U.S. Treasury, agency and agency mortgage-backed securities. In our principal securities borrowing and lending arrangements, the securities transferred are predominantly equity securities and some corporate debt securities. The fair value of the securities transferred may increase in value to an amount greater than the amount received under our repurchase and securities lending arrangements, which exposes the Company with counterparty risk. We require the review of the price of the underlying securities in relation to the carrying value of the repurchase agreements and securities lending arrangements on a daily basis and when appropriate, adjust the cash or security to be obtained or returned to counterparties that is reflective of the required collateral levels. The following tables summarize our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated: Remaining Contractual Maturity of the Agreements As of June 30, 2017 (In millions) Overnight and Continuous Up to 30 days 30 – 90 days Total Repurchase agreements: U.S. Treasury and agency securities $ 33,960 $ — $ — $ 33,960 Total 33,960 — — 33,960 Securities lending transactions: Corporate debt securities 45 — — 45 Equity securities 8,670 — 437 9,107 Non-U.S. sovereign debt 56 — — 56 Total 8,771 — 437 9,208 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 42,731 $ — $ 437 $ 43,168 Remaining Contractual Maturity of the Agreements As of December 31, 2016 (In millions) Overnight and Continuous Up to 30 days 30 – 90 days Total Repurchase agreements: U.S. Treasury and agency securities $ 35,509 $ — $ — $ 35,509 Total 35,509 — — 35,509 Securities lending transactions: Corporate debt securities 53 — — 53 Equity securities 8,337 — 1,034 9,371 Total 8,390 — 1,034 9,424 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 43,899 $ — $ 1,034 $ 44,933 |
Commitments and Guarantees
Commitments and Guarantees | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Guarantees | Commitments and Guarantees For additional information about our commitments and guarantees, refer to pages 171 to 172 in Note 12 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. The following table presents the aggregate gross contractual amounts of our off-balance sheet commitments and off-balance sheet guarantees as of the dates indicated. (In millions) June 30, 2017 December 31, 2016 Commitments: Unfunded credit facilities $ 26,708 $ 26,993 Guarantees (1) : Indemnified securities financing $ 370,472 $ 360,452 Stable value protection 25,400 27,182 Standby letters of credit 3,410 3,459 (1) The potential losses associated with these guarantees equal the gross contractual amounts and do not consider the value of any collateral or reflect any participations to independent third parties. Unfunded Credit Facilities Unfunded credit facilities consist of liquidity facilities for our fund and municipal lending clients and undrawn lines of credit related to senior secured bank loans. As of June 30, 2017 , approximately 72% of our unfunded commitments to extend credit expire within one year. Since many of these commitments are expected to expire or renew without being drawn upon, the gross contractual amounts do not necessarily represent our future cash requirements. Indemnified Securities Financing On behalf of our clients, we lend their securities, as agent, to brokers and other institutions. In most circumstances, we indemnify our clients for the fair market value of those securities against a failure of the borrower to return such securities. The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated: (In millions) June 30, 2017 December 31, 2016 Fair value of indemnified securities financing $ 370,472 $ 360,452 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 387,747 377,919 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 64,824 60,003 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 69,100 63,959 In certain cases, we participate in securities finance transactions as a principal. As a principal, we borrow securities from the lending client and then lend such securities to the subsequent borrower, either a State Street client or a broker/dealer. Our right to receive and obligation to return collateral in connection with our securities lending transactions are recorded in other assets and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. As of June 30, 2017 and December 31, 2016 , we had approximately $22.53 billion and $21.20 billion , respectively, of collateral provided and approximately $4.31 billion and $5.02 billion , respectively, of collateral received from clients in connection with our participation in principal securities finance transactions. Stable Value Protection In the normal course of our business, we offer products that provide book-value protection, primarily to plan participants in stable value funds managed by non-affiliated investment managers of post-retirement defined contribution benefit plans, particularly 401(k) plans. The book-value protection is provided on portfolios of intermediate investment grade fixed-income securities, and is intended to provide safety and stable growth of principal invested. The protection is intended to cover any shortfall in the event that a significant number of plan participants withdraw funds when book value exceeds market value and the liquidation of the assets is not sufficient to redeem the participants. The investment parameters of the underlying portfolios, combined with structural protections, are designed to provide cushion and guard against payments even under extreme stress scenarios. These contingencies are individually accounted for as derivative financial instruments. The notional amounts of the stable value contracts are presented as “derivatives not designated as hedging instruments” in the table of aggregate notional amounts of derivative financial instruments provided in Note 7 to the consolidated financial statements in this Form 10-Q. We have not made a payment under these contingencies that we consider material to our consolidated financial condition, and management believes that the probability of payment under these contingencies in the future, that we would consider material to our consolidated financial condition, is remote. Standby Letters of Credit Standby letters of credit provide credit enhancement to our municipal clients to support the issuance of capital markets financing. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal and Regulatory Matters: In the ordinary course of business, we and our subsidiaries are involved in disputes, litigation, and governmental or regulatory inquiries and investigations, both pending and threatened. These matters, if resolved adversely against us or settled, may result in monetary damages, fines and penalties or require changes in our business practices. The resolution or settlement of these matters is inherently difficult to predict. Based on our assessment of these pending matters, we do not believe that the amount of any judgment, settlement or other action arising from any pending matter is likely to have a material adverse effect on our consolidated financial condition. However, an adverse outcome in certain of the matters described below could have a material adverse effect on our consolidated results of operations for the period in which such matter is resolved, or an accrual is determined to be required, on our consolidated financial condition, or on our reputation. We evaluate our needs for accruals of loss contingencies related to legal and regulatory proceedings on a case-by-case basis. When we have a liability that we deem probable, and we deem the amount of such liability can be reasonably estimated as of the date of our consolidated financial statements, we accrue for our estimate of the amount of loss. We also consider a loss probable and establish an accrual when we make, or intend to make, an offer of settlement. Once established, an accrual is subject to subsequent adjustment as a result of additional information. The resolution of legal and regulatory proceedings and the amount of reasonably estimable loss (or range thereof) are inherently difficult to predict, especially in the early stages of proceedings. Even if a loss is probable, an amount (or range) of loss might not be reasonably estimated until the later stages of the proceeding due to many factors (collectively, "factors influencing reasonable estimates"), such as the presence of complex or novel legal theories, the discretion of governmental authorities in seeking sanctions or negotiating resolutions in civil and criminal matters, the pace and timing of discovery and other assessments of facts and the procedural posture of the matter. As of June 30, 2017, our aggregate accruals for loss contingencies for legal and regulatory matters totaled approximately $45 million (excluding approximately $ 32 million relating to client reimbursements in connection with errors in invoicing certain of our Investment Servicing clients, described below). To the extent that we have established accruals in our consolidated statement of condition for probable loss contingencies, such accruals may not be sufficient to cover our ultimate financial exposure associated with any settlements or judgments. Any such ultimate financial exposure, or proceedings to which we may become subject in the future, could have a material adverse effect on our businesses, on our future consolidated financial statements or on our reputation. Except where otherwise noted below, we have not established accruals with respect to the claims discussed and do not believe that potential exposure is probable and can be reasonably estimated. We have identified certain matters for which loss is reasonably possible (but not probable) in future periods, whether in excess of an accrued liability or where there is no accrued liability, and for which we are able to estimate a range of reasonably possible loss. As of June 30, 2017, our estimate of the range of reasonably possible loss for these matters is from zero to approximately $15 million in the aggregate. Our estimate with respect to the aggregate range of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. In certain other pending matters, including the Invoicing Matter, Federal Reserve/Massachusetts Division of Banks Written Agreement and Shareholder Litigation discussed below, it is not currently feasible to reasonably estimate the amount or a range of reasonably possible loss (including reasonably possible loss in excess of amounts accrued), and such losses, which may be significant, are not included in the estimate of reasonably possible loss discussed above. This is due to, among other factors, one or more considerations consistent with the factors influencing reasonable estimates described in the above discussion of probable loss accruals. These considerations are particularly prevalent in governmental and regulatory inquiries and investigations and, as a result, reasonably possible loss estimates often are not feasible until the later stages of the inquiry or investigation or of any related legal or regulatory proceeding. An adverse outcome in one or more of the matters for which we do not estimate the amount or a range of reasonably possible loss, individually or in the aggregate, could have a material adverse effect on our businesses, on our future consolidated financial statements or on our reputation. Given that we cannot estimate reasonably possible loss for all legal and regulatory proceedings as to which we may be subject now or in the future, including matters that if adversely concluded may present material financial, regulatory and reputational risks, no conclusion as to the ultimate exposure from current pending or potential legal or regulatory proceedings should be drawn from the current estimate of reasonably possible loss. The following discussion provides information with respect to significant legal, governmental and regulatory matters. Transition Management In January 2014, we entered into a settlement with the FCA, pursuant to which we paid a fine of £22.9 million (approximately $37.8 million ), as a result of our having charged six clients of our U.K. transition management business during 2010 and 2011 amounts in excess of the contractual terms. The SEC and the DOJ opened separate investigations into this matter. The U.S. Attorney’s office in Boston has charged three former employees in our transition management business with criminal fraud in connection with their alleged role in this matter. Two of these individuals have pled guilty to one count of criminal conspiracy. Charges remain pending against the third individual. The SEC has also commenced a parallel civil enforcement proceeding against that individual. On January 18, 2017, we announced that we had entered into a settlement agreement with the DOJ and the United States Attorney for the District of Massachusetts to resolve their investigation. Under the terms of the agreement, we, among other things, paid a fine of $32.3 million and entered into a deferred prosecution agreement. Under the deferred prosecution agreement, we agreed to retain an independent compliance and ethics monitor for a term of three years (subject to extension) which will, among other things, review and monitor the effectiveness of our compliance controls and business ethics and make related recommendations. We have reached an agreement in principle with the Staff of the SEC and have offered to pay a penalty of $32.3 million (equal to the fine paid to the DOJ). The settlement, including our agreement to engage an independent ethics and compliance consultant, has been submitted to the SEC for its review and approval. As of June 30, 2017, we had an accrual of $32.3 million with respect to the SEC investigation but had not yet finalized a settlement. GovEx We have been cooperating in connection with an inquiry by the SEC relating to the GovEx electronic trading platform, which was offered and operated by State Street Global Markets, LLC from September 2009 to July 2015. The subjects of the inquiry are our communications related to volume, pricing and functionalities of the platform. We have reached an agreement in principle with the Staff of the SEC and have offered to pay a penalty of $3 million . The settlement has been submitted to the SEC for its review and approval. As of June 30, 2017, we had accrued $3 million for this matter. Federal Reserve/Massachusetts Division of Banks Written Agreement On June 1, 2015, we entered into a written agreement with the Federal Reserve and the Massachusetts Division of Banks relating to deficiencies identified in our compliance programs with the requirements of the Bank Secrecy Act, AML regulations and U.S. economic sanctions regulations promulgated by OFAC. As part of this enforcement action, we are required to, among other things, implement improvements to our compliance programs and to retain an independent firm to conduct a review of account and transaction activity covering a prior three-month period to evaluate whether any suspicious activity not previously reported should have been identified and reported in accordance with applicable regulatory requirements. To the extent deficiencies in our historical reporting are identified as a result of the transaction review or if we fail to comply with the terms of the written agreement, we may become subject to fines and other regulatory sanctions, which may have a material adverse effect on us. Invoicing Matter In December 2015, we announced a review of the manner in which we invoiced certain expenses to some of our Investment Servicing clients, primarily in the United States, during an 18-year period going back to 1998, and our determination that we had incorrectly invoiced clients for certain expenses. We informed our clients in December 2015 that we will pay to them the amounts we concluded were incorrectly invoiced to them, plus interest. We currently expect the cumulative total of our payments to be at least $340 million (including interest), in connection with that review, which is ongoing, of which approximately $ 32 million has not yet been paid to clients and is accrued in our consolidated statement of condition at June 30, 2017 . We are implementing enhancements to our billing processes, and we are reviewing the conduct of our employees and have taken appropriate steps to address conduct inconsistent with our standards, including, in some cases, termination of employment. We are also evaluating other billing practices relating to our Investment Servicing clients, including calculation of asset-based fees. We have received a purported class action demand letter alleging that our invoicing practices were unfair and deceptive under Massachusetts law. A class of customers, or particular customers, may assert that we have not paid to them all amounts incorrectly invoiced, and may seek double or treble damages under Massachusetts law. In addition, in March 2017, a purported class action was commenced against us alleging that our invoicing practices violated duties owed to retirement plan customers under ERISA. We are also responding to requests for information from, and are cooperating with investigations by, governmental and regulatory authorities on these matters, including the civil and criminal divisions of the DOJ, the SEC, the DOL and the Massachusetts Attorney General, which could result in significant fines or other sanctions, civil and criminal, against us. If these governmental or regulatory authorities were to conclude that all or a portion of the billing error merited civil or criminal sanctions, any fine or other penalty could be a significant percentage or a multiple of the portion of the overcharging serving as the basis of such a claim or of the full amount of the overcharging. The governmental and regulatory authorities have significant discretion in civil and criminal matters as to the fines and other penalties they seek to impose. The severity of such fines or other penalties could take into account factors such as the amount and duration of our incorrect invoicing, the government’s or regulator's assessment of the conduct of our employees, as well as prior conduct such as that which resulted in our January 2017 deferred prosecution agreement in connection with transition management services and our recent settlement of civil claims regarding our indirect foreign exchange business. Any governmental or regulatory proceeding or sanction or the outcome of any litigation could have a material adverse effect on our reputation or business, including the imposition of restrictions on the operation of our business or a reduction in client demand. Resolution of these matters could also have a material adverse effect on our consolidated results of operations for the period or periods in which such matters are resolved or an accrual is determined to be required. No accrual, other than a reserve for client reimbursement, is reflected on our consolidated statement of condition as of June 30, 2017. Shareholder Litigation In January 2017, a State Street shareholder filed a purported class action complaint against the Company alleging that statements made by the Company in its annual reports for the 2011-2015 period regarding its internal controls and procedures were misleading due to the failure of those controls and procedures to detect the practices at issue in the Transition Management and Invoicing Matters discussed above. In July 2017, a State Street shareholder filed a derivative complaint against the Company demanding that the Company take legal action against its past and present officers and directors to recover alleged damages from the incorrect invoicing of certain expenses and from the January 2016 settlement with the SEC concerning Ohio public retirement plans and that the Company institute various corporate governance reforms. Income Taxes: In determining our provision for income taxes, we make certain judgments and interpretations with respect to tax laws in jurisdictions in which we have business operations. Because of the complex nature of these laws, in the normal course of our business, we are subject to challenges from U.S. and non-U.S. income tax authorities regarding the amount of income taxes due. These challenges may result in adjustments to the timing or amount of taxable income or deductions or the allocation of taxable income among tax jurisdictions. We recognize a tax benefit when it is more likely than not that our position will result in a tax deduction or credit. Unrecognized tax benefits of approximately $63 million as of June 30, 2017 decreased from $71 million as of December 31, 2016. We are presently under audit by a number of tax authorities and the Internal Revenue Service is currently reviewing our U.S. income tax returns for the tax years 2014 and 2015. The earliest tax year open to examination in jurisdictions where we have material operations is 2010. Management believes that we have sufficiently accrued liabilities as of June 30, 2017 for tax exposures. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities For additional information on our VIEs, refer to pages 174 to 175 in Note 14 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. Tax-Exempt Investment Program: In the normal course of our business, we structure and sell certificated interests in pools of tax-exempt investment-grade assets, principally to our mutual fund clients. We structure these pools as partnership trusts, and the assets and liabilities of the trusts are recorded in our consolidated statement of condition as AFS investment securities and other short-term borrowings. As of June 30, 2017 and December 31, 2016 , we carried AFS investment securities, composed of securities related to state and political subdivisions, with a fair value of $1.31 billion and $1.35 billion , respectively, and other short-term borrowings of $1.11 billion and $1.16 billion , respectively, in our consolidated statement of condition in connection with these trusts. The interest income and interest expense generated by the investments and certificated interests, respectively, are recorded as components of NII when earned or incurred. The trusts had a weighted-average life of approximately 4.3 years as of June 30, 2017 , compared to approximately 4.5 years as of December 31, 2016 . Under separate legal agreements, we provide liquidity facilities to these trusts and, with respect to certain securities, letters of credit. As of June 30, 2017 , our commitments to the trusts under these liquidity facilities and letters of credit totaled $1.13 billion and $351 million , respectively, and none of the liquidity facilities were utilized. Interests in Investment Funds: As of June 30, 2017 and December 31, 2016 , we had no consolidated funds. As of June 30, 2017 and December 31, 2016 , we managed certain funds, considered VIEs, in which we held a variable interest but for which we were not deemed to be the primary beneficiary. Our potential maximum loss exposure related to these unconsolidated funds totaled $94 million and $121 million as of June 30, 2017 and December 31, 2016 , respectively, and represented the carrying value of our investments, which are recorded in either AFS investment securities or other assets in our consolidated statement of condition. The amount of loss we may recognize during any period is limited to the carrying amount of our investments in the unconsolidated funds. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Preferred Stock: The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of June 30, 2017 : Issuance Date Depositary Shares Issued Ownership Interest Per Depositary Share Liquidation Preference Per Share Liquidation Preference Per Depositary Share Net Proceeds of Offering (In millions) Redemption Date (1) Preferred Stock (2) : Series C August 2012 20,000,000 1/4,000th $ 100,000 $ 25 $ 488 September 15, 2017 Series D February 2014 30,000,000 1/4,000th 100,000 25 742 March 15, 2024 Series E November 2014 30,000,000 1/4,000th 100,000 25 728 December 15, 2019 Series F May 2015 750,000 1/100th 100,000 1,000 742 September 15, 2020 Series G April 2016 20,000,000 1/4,000th 100,000 25 493 March 15, 2026 (1) On the redemption date, or any dividend declaration date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. (2) The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. The following tables present the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated: Three Months Ended June 30, 2017 2016 Dividends Declared per Share Dividends Declared per Depositary Share Total (1) Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C $ 1,313 $ 0.33 $ 7 $ 1,313 $ 0.33 $ 6 Series D 1,475 0.37 11 1,475 0.37 11 Series E 1,500 0.38 11 1,500 0.38 11 Series F — — — — — — Series G 1,338 0.33 7 951 0.24 5 Total $ 36 $ 33 Six Months Ended June 30, 2017 2016 Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C $ 2,626 $ 0.66 $ 13 $ 2,626 $ 0.66 $ 13 Series D 2,950 0.74 22 2,950 0.74 22 Series E 3,000 0.76 22 3,000 0.76 22 Series F 2,625 26.25 20 2,625 26.25 20 Series G 2,676 0.66 14 951 0.24 5 Total $ 91 $ 82 (1) Dividends were paid in June 2017. In July 2017, we declared dividends on our Series C, D, E, F and G preferred stock of approximately $1,313 , $1,475 , $1,500 , $2,625 and $1,338 , respectively, per share, or approximately $0.33 , $0.37 , $0.38 , $26.25 and $0.33 , respectively, per depositary share. These dividends total approximately $6 million , $11 million , $11 million , $20 million and $7 million on our Series C, D, E, F and G preferred stock, respectively, which will be paid in September 2017. Common Stock: In June 2017, our Board approved a common stock purchase program authorizing the purchase of up to $1.4 billion of our common stock through June 30, 2018 (the 2017 Program). No shares were purchased by us under this program in the quarter ended June 30, 2017. In June 2016, our Board approved a common stock purchase program authorizing the purchase of up to $1.4 billion of our common stock through June 30, 2017 (the 2016 Program). The table below presents the activity under the 2016 Program during the periods indicated: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Shares Acquired Average Cost per Share Total Acquired Shares Acquired Average Cost per Share Total Acquired 2016 Program (1) 2.7 $ 83.84 $ 227 9.4 $ 79.93 $ 750 (1) Includes $158 million relating to shares acquired in exchange for BFDS stock during the first quarter of 2017. Additional information about the exchange is provided in Note 1 to the consolidated financial statements included in this Form 10-Q. The table below presents the dividends declared on common stock for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) 2017 2016 2017 2016 Common Stock $ 0.38 $ 142 $ 0.34 $ 133 $ 0.76 $ 286 $ 0.68 $ 268 Accumulated Other Comprehensive Income (Loss): The following table presents the after-tax components of AOCI as of the dates indicated: (In millions) June 30, 2017 December 31, 2016 Net unrealized gains (losses) on cash flow hedges $ (18 ) $ 229 Net unrealized gains (losses) on available-for-sale securities portfolio 254 (225 ) Net unrealized gains (losses) related to reclassified available-for-sale securities 18 25 Net unrealized gains (losses) on available-for-sale securities 272 (200 ) Net unrealized losses on available-for-sale securities designated in fair value hedges (77 ) (86 ) Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries (6 ) 95 Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (7 ) (9 ) Net unrealized losses on retirement plans (186 ) (194 ) Foreign currency translation (1,248 ) (1,875 ) Total $ (1,270 ) $ (2,040 ) The following table presents changes in AOCI by component, net of related taxes, for the periods indicated: Six Months Ended June 30, 2017 (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2016 $ 229 $ (286 ) $ 95 $ (9 ) $ (194 ) $ (1,875 ) $ (2,040 ) Other comprehensive income (loss) before reclassifications (247 ) 505 (101 ) 2 (1 ) 627 785 Amounts reclassified into (out of) earnings — (24 ) — — 9 — (15 ) Other comprehensive income (loss) (247 ) 481 (101 ) 2 8 627 770 Balance as of June 30, 2017 $ (18 ) $ 195 $ (6 ) $ (7 ) $ (186 ) $ (1,248 ) $ (1,270 ) Six Months Ended June 30, 2016 (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gain (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2015 $ 293 $ (128 ) $ (14 ) $ (16 ) $ (183 ) $ (1,394 ) $ (1,442 ) Other comprehensive income (loss) before reclassifications (174 ) 522 51 4 (4 ) 43 442 Amounts reclassified into (out of) earnings — 2 — (1 ) 2 — 3 Other comprehensive income (loss) (174 ) 524 51 3 (2 ) 43 445 Balance as of June 30, 2016 $ 119 $ 396 $ 37 $ (13 ) $ (185 ) $ (1,351 ) $ (997 ) The following table presents after-tax reclassifications into earnings for the periods indicated: Three Months Ended June 30, 2017 2016 (In millions) Amounts Reclassified into (out of) Earnings Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains (losses) from sales of available-for-sale securities $ — $ (1 ) Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit — (1 ) Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of $1 and ($1), respectively 3 1 Compensation and employee benefits expenses Total reclassifications (out of) into AOCI $ 3 $ (1 ) Six Months Ended June 30, 2017 2016 (In millions) Amounts Reclassified into (out of) Earnings Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains (losses) from sales of available-for-sale securities, net of related taxes of $16 and ($1), respectively $ (24 ) $ 2 Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit — (1 ) Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of ($2) and ($3), respectively 9 2 Compensation and employee benefits expenses Total reclassifications (out of) into AOCI $ (15 ) $ 3 |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Regulatory Capital We are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum regulatory capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial condition. Under current regulatory capital adequacy guidelines, we must meet specified capital requirements that involve quantitative measures of our consolidated assets, liabilities and off-balance sheet exposures calculated in conformity with regulatory accounting practices. Our capital components and their classifications are subject to qualitative judgments by regulators about components, risk weightings and other factors. For additional information on regulatory capital, and the requirements to which we are subject, refer to pages 179 to 180 in Note 16 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. As required by the Dodd-Frank Act, State Street and State Street Bank, as advanced approaches banking organizations, are subject to a permanent "capital floor" in the calculation and assessment of their regulatory capital adequacy by U.S. banking regulators. Beginning on January 1, 2015, we were required to calculate our risk-based capital ratios using both the advanced approaches and the standardized approach. As a result, from January 1, 2015 going forward, our risk-based capital ratios for regulatory assessment purposes are the lower of each ratio calculated under the standardized approach and the advanced approaches. The methods for the calculation of our and State Street Bank's risk-based capital ratios will change as the provisions of the Basel III final rule related to the numerator (capital) and denominator (risk-weighted assets) are phased in, and as we begin calculating our risk-weighted assets using the advanced approaches. These ongoing methodological changes will result in differences in our reported capital ratios from one reporting period to the next that are independent of applicable changes to our capital base, our asset composition, our off-balance sheet exposures or our risk profile. As of June 30, 2017 , State Street and State Street Bank exceeded all regulatory capital adequacy requirements to which they were subject. As of June 30, 2017 , State Street Bank was categorized as “well capitalized” under the applicable regulatory capital adequacy framework, and exceeded all “well capitalized” ratio guidelines to which it was subject. Management believes that no conditions or events have occurred since June 30, 2017 that have changed the capital categorization of State Street Bank. The following table presents the regulatory capital structure, total risk-weighted assets, related regulatory capital ratios and the minimum required regulatory capital ratios for State Street and State Street Bank as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III final rule are phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table. State Street State Street Bank (In millions) Basel III Advanced Approaches June 30, 2017 (1) Basel III Standardized Approach June 30, 2017 (2) Basel III Advanced Approaches December 31, 2016 (1) Basel III Standardized Approach December 31, 2016 (2) Basel III Advanced Approaches June 30, 2017 (1) Basel III Standardized Approach June 30, 2017 (2) Basel III Advanced Approaches December 31, 2016 (1) Basel III Standardized Approach December 31, 2016 (2) Common shareholders' equity: Common stock and related surplus $ 10,307 $ 10,307 $ 10,286 $ 10,286 $ 11,382 $ 11,382 $ 11,376 $ 11,376 Retained earnings 18,202 18,202 17,459 17,459 12,188 12,188 12,285 12,285 Accumulated other comprehensive income (loss) (1,266 ) (1,266 ) (1,936 ) (1,936 ) (1,060 ) (1,060 ) (1,648 ) (1,648 ) Treasury stock, at cost (8,367 ) (8,367 ) (7,682 ) (7,682 ) — — — — Total 18,876 18,876 18,127 18,127 22,510 22,510 22,013 22,013 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (3) (6,714 ) (6,714 ) (6,348 ) (6,348 ) (6,417 ) (6,417 ) (6,060 ) (6,060 ) Other adjustments (155 ) (155 ) (155 ) (155 ) (91 ) (91 ) (148 ) (148 ) Common equity tier 1 capital 12,007 12,007 11,624 11,624 16,002 16,002 15,805 15,805 Preferred stock 3,196 3,196 3,196 3,196 — — — — Trust preferred capital securities subject to phase-out from tier 1 capital — — — — — — — — Other adjustments (38 ) (38 ) (103 ) (103 ) — — — — Tier 1 capital 15,165 15,165 14,717 14,717 16,002 16,002 15,805 15,805 Qualifying subordinated long-term debt 1,074 1,074 1,172 1,172 1,078 1,078 1,179 1,179 Trust preferred capital securities phased out of tier 1 capital — — — — — — — — ALLL and other 4 75 19 77 — 75 15 77 Other adjustments — — 1 1 — — — — Total capital $ 16,243 $ 16,314 $ 15,909 $ 15,967 $ 17,080 $ 17,155 $ 16,999 $ 17,061 Risk-weighted assets: Credit risk $ 52,755 $ 105,785 $ 50,900 $ 98,125 $ 50,010 $ 102,642 $ 47,383 $ 94,413 Operational risk (4) 44,123 NA 44,579 NA 43,552 NA 44,043 NA Market risk (5) 3,387 1,284 3,822 1,751 3,388 1,284 3,822 1,751 Total risk-weighted assets $ 100,265 $ 107,069 $ 99,301 $ 99,876 $ 96,950 $ 103,926 $ 95,248 $ 96,164 Adjusted quarterly average assets $ 216,940 $ 216,940 $ 226,310 $ 226,310 $ 214,022 $ 214,022 $ 222,584 $ 222,584 Capital Ratios: 2017 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (6) 2016 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (7) Common equity tier 1 capital 6.5 % 5.5 % 12.0 % 11.2 % 11.7 % 11.6 % 16.5 % 15.4 % 16.6 % 16.4 % Tier 1 capital 8.0 7.0 15.1 14.2 14.8 14.7 16.5 15.4 16.6 16.4 Total capital 10.0 9.0 16.2 15.2 16.0 16.0 17.6 16.5 17.8 17.7 Tier 1 leverage 4.0 4.0 7.0 7.0 6.5 6.5 7.5 7.5 7.1 7.1 (1) Common equity tier 1 capital, tier 1 capital and total capital ratios as of June 30, 2017 and December 31, 2016 were calculated in conformity with the advanced approaches provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2017 and December 31, 2016 were calculated in conformity with the Basel III final rule. (2) Common equity tier 1 capital, tier 1 capital and total capital ratios as of June 30, 2017 and December 31, 2016 were calculated in conformity with the standardized approach provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2017 and December 31, 2016 were calculated in conformity with the Basel III final rule. (3) Amounts for State Street and State Street Bank as of June 30, 2017 consisted of goodwill, net of associated deferred tax liabilities, and 80% of other intangible assets, net of associated deferred tax liabilities. Amounts for State Street and State Street Bank as of December 31, 2016 consisted of goodwill, net of deferred tax liabilities and 60% of other intangible assets, net of associated deferred tax liabilities. Intangible assets, net of associated deferred tax liabilities is phased in as a deduction from capital, in conformity with the Basel III final rule. (4) Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational risk RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs. (5) Market risk risk-weighted assets reported in conformity with the Basel III advanced approaches included a CVA which reflected the risk of potential fair-value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts. The CVA was not provided for in the final market risk capital rule; however, it was required by the advanced approaches provisions of the Basel III final rule. We used a simple CVA approach in conformity with the Basel III advanced approaches. (6) Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of June 30, 2017 . (7) Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2016 . NA Not applicable |
Net Interest Income
Net Interest Income | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Net Interest Income | Net Interest Income The following table presents the components of interest income and interest expense, and related NII, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2017 2016 2017 2016 Interest income: Deposits with banks $ 41 $ 30 $ 76 $ 73 Investment securities: U.S. Treasury and federal agencies 208 209 420 420 State and political subdivisions 56 54 114 108 Other investments 164 189 323 371 Securities purchased under resale agreements 69 35 115 71 Loans and leases 118 93 224 184 Other interest-earning assets 44 10 78 22 Total interest income 700 620 1,350 1,249 Interest expense: Deposits 14 16 57 54 Securities sold under repurchase agreements — — 1 1 Short-term borrowings 3 2 5 2 Long-term debt 75 62 148 122 Other interest-bearing liabilities 33 19 54 37 Total interest expense 125 99 265 216 Net interest income $ 575 $ 521 $ 1,085 $ 1,033 |
Expenses
Expenses | 6 Months Ended |
Jun. 30, 2017 | |
Other Expenses [Abstract] | |
Expenses | Expenses The following table presents the components of other expenses for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2017 2016 2017 2016 Insurance $ 28 $ 21 $ 58 $ 44 Regulatory fees and assessments 18 18 45 38 Securities processing 9 6 16 10 Litigation (17 ) — (17 ) — Other 94 93 181 158 Total other expenses $ 132 $ 138 $ 283 $ 250 Acquisition Costs We recorded acquisition costs of $9 million and $7 million in the three months ended June 30, 2017 and 2016 , respectively. Costs incurred in the three months ended June 30, 2017 related to our acquisition of GEAM on July 1, 2016. Restructuring Charges In the second quarter and first six months of 2017 , we recorded restructuring charges of $62 million and $79 million , respectively, compared to $13 million and $110 million in the same periods of 2016. The charges were primarily related to State Street Beacon . The following table presents aggregate restructuring activity for the periods indicated: (In millions) Employee Real Estate Asset and Other Write-offs Total Accrual Balance at December 31, 2015 $ 9 $ 11 $ 3 $ 23 Accruals for State Street Beacon 86 — 11 97 Payments and Other Adjustments (4 ) (1 ) (7 ) (12 ) Accrual Balance at March 31, 2016 $ 91 $ 10 $ 7 $ 108 Accruals for State Street Beacon (1 ) 15 (1 ) 13 Payments and Other Adjustments (35 ) (3 ) (1 ) (39 ) Accrual Balance at June 30, 2016 $ 55 $ 22 $ 5 $ 82 Accrual Balance at December 31, 2016 $ 37 $ 17 $ 2 $ 56 Accruals for State Street Beacon 14 — 2 16 Payments and Other Adjustments (13 ) (3 ) (2 ) (18 ) Accrual Balance at March 31, 2017 $ 38 $ 14 $ 2 $ 54 Accruals for State Street Beacon 60 — 2 62 Payments and other adjustments (11 ) (3 ) (2 ) (16 ) Accrual Balance at June 30, 2017 $ 87 $ 11 $ 2 $ 100 |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic EPS is calculated pursuant to the “two-class” method, by dividing net income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted EPS is calculated pursuant to the two-class method, by dividing net income available to common shareholders by the total weighted-average number of common shares outstanding for the period plus the shares representing the dilutive effect of equity-based awards. The effect of equity-based awards is excluded from the calculation of diluted EPS in periods in which their effect would be anti-dilutive. The two-class method requires the allocation of undistributed net income between common and participating shareholders. Net income available to common shareholders, presented separately in our consolidated statement of income, is the basis for the calculation of both basic and diluted EPS. Participating securities are composed of unvested and fully vested SERP shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings. The following table presents the computation of basic and diluted earnings per common share for the periods indicated: Three Months Ended June 30, (Dollars in millions, except per share amounts) 2017 2016 Net income $ 620 $ 619 Less: Preferred stock dividends (36 ) (33 ) Dividends and undistributed earnings allocated to participating securities (1) — (1 ) Net income available to common shareholders $ 584 $ 585 Average common shares outstanding (In thousands): Basic average common shares 375,395 394,160 Effect of dilutive securities: equity-based awards 5,520 4,687 Diluted average common shares 380,915 398,847 Anti-dilutive securities (2) 293 3,277 Earnings per Common Share: Basic $ 1.56 $ 1.48 Diluted (3) 1.53 1.47 Six Months Ended June 30, (Dollars in millions, except per share amounts) 2017 2016 Net income $ 1,122 $ 987 Less: Preferred stock dividends (91 ) (82 ) Dividends and undistributed earnings allocated to participating securities (1) (1 ) (1 ) Net income available to common shareholders $ 1,030 $ 904 Average common shares outstanding (In thousands): Basic average common shares 378,293 396,790 Effect of dilutive securities: equity-based awards 5,196 4,323 Diluted average common shares 383,489 401,113 Anti-dilutive securities (2) 527 3,426 Earnings per Common Share: Basic $ 2.72 $ 2.28 Diluted (3) 2.69 2.25 (1) Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings. (2) Represents equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive. Additional information about equity-based awards is provided in Note 18 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. (3) Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method. |
Line of Business Information
Line of Business Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Line of Business Information | Line of Business Information Our operations are organized into two lines of business: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry. For information about our two lines of business, as well as revenues, expenses and capital allocation methodologies associated with them, refer to pages 188 to 189 in Note 24 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. The following is a summary of our line-of-business results for the periods indicated. The "Other" column represents costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies. Three Months Ended June 30, Investment Investment Other Total (Dollars in millions) 2017 2016 2017 2016 2017 2016 2017 2016 Servicing fees $ 1,339 $ 1,239 $ — $ — $ — $ — $ 1,339 $ 1,239 Management fees — — 397 293 — — 397 293 Trading services 272 254 17 13 — — 289 267 Securities finance 179 156 — — — — 179 156 Processing fees and other 32 103 (1 ) (5 ) — — 31 98 Total fee revenue 1,822 1,752 413 301 — — 2,235 2,053 Net interest income 576 520 (1 ) 1 — — 575 521 Gains (losses) related to investment securities, net — (1 ) — — — — — (1 ) Total revenue 2,398 2,271 412 302 — — 2,810 2,573 Provision for loan losses 3 4 — — — — 3 4 Total expenses 1,649 1,599 311 244 71 17 2,031 1,860 Income before income tax expense $ 746 $ 668 $ 101 $ 58 $ (71 ) $ (17 ) $ 776 $ 709 Pre-tax margin 31 % 29 % 25 % 19 % 28 % 28 % Six Months Ended June 30, Investment Investment Other Total (Dollars in millions) 2017 2016 2017 2016 2017 2016 2017 2016 Servicing fees $ 2,635 $ 2,481 $ — $ — $ — $ — $ 2,635 $ 2,481 Management fees — — 779 563 — — 779 563 Trading services 529 512 35 27 — — 564 539 Securities finance 312 290 — — — — 312 290 Processing fees and other 138 152 5 (2 ) — — 143 150 Total fee revenue 3,614 3,435 819 588 — — 4,433 4,023 Net interest income 1,085 1,032 — 1 — — 1,085 1,033 Gains (losses) related to investment securities, net (40 ) 1 — — — — (40 ) 1 Total revenue 4,659 4,468 — 819 589 — — 5,478 5,057 Provision for loan losses 1 8 — — — — 1 8 Total expenses 3,377 3,286 640 500 100 124 4,117 3,910 Income before income tax expense $ 1,281 $ 1,174 $ 179 $ 89 $ (100 ) $ (124 ) $ 1,360 $ 1,139 Pre-tax margin 27 % 26 % 22 % 15 % 25 % 23 % |
Non-U.S. Activities
Non-U.S. Activities | 6 Months Ended |
Jun. 30, 2017 | |
Segments, Geographical Areas [Abstract] | |
Non-U.S. Activities | Non-U.S. Activities We define our non-U.S. activities as those revenue-producing business activities that arise from clients which are generally serviced or managed outside the U.S. Due to the integrated nature of our business, precise segregation of our U.S. and non-U.S. activities is not possible. Subjective estimates, assumptions and other judgments are applied to quantify the financial results and assets related to our non-U.S. activities, including our application of funds transfer pricing, our asset-and-liability management policies and our allocation of certain indirect corporate expenses. Management periodically reviews and updates its processes for quantifying the financial results and assets related to our non-U.S. activities. The following table presents our U.S. and non-U.S. financial results for the periods indicated: Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 (In millions) Non-U.S. U.S. Total Non-U.S. U.S. Total Total revenue $ 1,172 $ 1,638 $ 2,810 $ 1,136 $ 1,437 $ 2,573 Income before income taxes 324 452 776 344 365 709 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 (In millions) Non-U.S. U.S. Total Non-U.S. U.S. Total Total revenue $ 2,268 $ 3,210 $ 5,478 $ 2,161 $ 2,896 $ 5,057 Income before income taxes 583 777 1,360 521 618 1,139 Non-U.S. assets were $73.2 billion and $84.6 billion as of June 30, 2017 and 2016 , respectively. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the Parent Company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary is State Street Bank. The accompanying Consolidated Financial Statements should be read in conjunction with the financial and risk factor information included in our 2016 Form 10-K, which we previously filed with the SEC. |
Consolidation | The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue, and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. These accounting estimates reflect the best judgment of management, but actual results could differ. Our consolidated statement of condition as of December 31, 2016 included in the accompanying consolidated financial statements was derived from the audited financial statements as of that date, but does not include all notes required by U.S. GAAP for a complete set of consolidated financial statements. |
Recent Accounting Developments | Recent Accounting Developments: Relevant standards that were issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The standard, and its related amendments, will replace existing revenue recognition standards and expand the disclosure requirements for revenue arrangements with customers. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. January 1, 2018 We are currently assessing the full impact of the revenue recognition standard and its amendments on our consolidated financial statements and evaluating the alternative methods of adoption. ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard makes limited amendments to the guidance on the classification and measurement of financial instruments. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting. In addition, the FASB clarified the guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. This standard must be applied on a retrospective basis. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements. Based on our initial assessments, we do not currently anticipate this standard to have a material impact on our consolidated financial statements due to the limited number of investments on our consolidated statement of condition that are within scope of the standard. ASU 2016-02, Leases (Topic 842) The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. January 1, 2019 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, primarily real estate leases for office space, as well as additional disclosure on all our lease obligations. Relevant standards that were issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities and other financial assets, held at the reporting date to be measured based on historical experience, current conditions and reasonable supportable forecasts. Credit losses on available-for-sale securities will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. January 1, 2020 We are currently assessing the impact of the standard on our consolidated financial statements, and a significant implementation project is in place to ensure that expected credit losses are calculated in accordance with the standard. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and are currently developing key accounting policies, evaluating existing credit loss models and processes and identifying a complete set of data requirements and sources. Based on our analysis to date, we expect a significant effort to develop new or modified credit loss models and that the timing of the recognition of credit losses will accelerate under the new standard. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) The standard amends the statement of cash flow guidance to address specific cash flow issues with the objective of reducing the existing diversity in practice. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements; however based on our current presentation we do not anticipate a significant change to our financial statement presentation of the statement of cash flows. ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business The standard incorporates gating criteria to determine when an integrated set of assets and activities is not a business. When substantially all the fair value of gross assets acquired (or group of similar identifiable assets) is concentrated in a single identifiable asset, it would not represent a business. January 1, 2018, early adoption permitted We will apply this standard prospectively upon adoption. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The ASU requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. January 1, 2020, early adoption permitted We are evaluating the impacts of early adoption, and will apply this standard prospectively upon adoption. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium amortization on Purchased Callable Debt Securities This standard shortens the amortization period for certain purchased callable debt securities to the earliest call date. January 1, 2019, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. We adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , effective January 1, 2017. Starting in the quarter ended March 31, 2017, we reclassified excess tax benefits related to stock-based compensation from financing activities to other operating activities. We continued to present repurchases of common stock for employee tax withholding in financing activities in the consolidated statements of cash flows for all periods presented. As required by the transition provisions of the standard, excess tax benefits previously recognized in surplus prior to January 1, 2017 remain in surplus, and excess tax benefits recognized after January 1, 2017 are included in income tax expense. In connection with this change, we recognized a tax benefit of $11 million in the first six months of 2017 . We elected to make no changes to our current policy of estimating forfeitures. Lastly, we did not make any changes to tax withholding rates. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Developments | Relevant standards that were issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The standard, and its related amendments, will replace existing revenue recognition standards and expand the disclosure requirements for revenue arrangements with customers. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. January 1, 2018 We are currently assessing the full impact of the revenue recognition standard and its amendments on our consolidated financial statements and evaluating the alternative methods of adoption. ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard makes limited amendments to the guidance on the classification and measurement of financial instruments. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting. In addition, the FASB clarified the guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. This standard must be applied on a retrospective basis. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements. Based on our initial assessments, we do not currently anticipate this standard to have a material impact on our consolidated financial statements due to the limited number of investments on our consolidated statement of condition that are within scope of the standard. ASU 2016-02, Leases (Topic 842) The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. January 1, 2019 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, primarily real estate leases for office space, as well as additional disclosure on all our lease obligations. Relevant standards that were issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities and other financial assets, held at the reporting date to be measured based on historical experience, current conditions and reasonable supportable forecasts. Credit losses on available-for-sale securities will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. January 1, 2020 We are currently assessing the impact of the standard on our consolidated financial statements, and a significant implementation project is in place to ensure that expected credit losses are calculated in accordance with the standard. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and are currently developing key accounting policies, evaluating existing credit loss models and processes and identifying a complete set of data requirements and sources. Based on our analysis to date, we expect a significant effort to develop new or modified credit loss models and that the timing of the recognition of credit losses will accelerate under the new standard. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) The standard amends the statement of cash flow guidance to address specific cash flow issues with the objective of reducing the existing diversity in practice. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements; however based on our current presentation we do not anticipate a significant change to our financial statement presentation of the statement of cash flows. ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business The standard incorporates gating criteria to determine when an integrated set of assets and activities is not a business. When substantially all the fair value of gross assets acquired (or group of similar identifiable assets) is concentrated in a single identifiable asset, it would not represent a business. January 1, 2018, early adoption permitted We will apply this standard prospectively upon adoption. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The ASU requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. January 1, 2020, early adoption permitted We are evaluating the impacts of early adoption, and will apply this standard prospectively upon adoption. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium amortization on Purchased Callable Debt Securities This standard shortens the amortization period for certain purchased callable debt securities to the earliest call date. January 1, 2019, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair-Value Measurements on a Recurring Basis as of June 30, 2017 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 39 $ — $ — $ 39 Non-U.S. government securities 383 114 — 497 Other — 360 — 360 Total trading account assets 422 474 — 896 AFS Investment securities: U.S. Treasury and federal agencies: Direct obligations 231 402 — 633 Mortgage-backed securities — 11,414 — 11,414 Asset-backed securities: Student loans — 5,887 — 5,887 Credit cards — 1,556 — 1,556 Sub-prime — 243 — 243 Other (2) — 209 951 1,160 Total asset-backed securities — 7,895 951 8,846 Non-U.S. debt securities: Mortgage-backed securities — 6,962 — 6,962 Asset-backed securities — 2,828 63 2,891 Government securities — 6,600 — 6,600 Other (3) — 6,002 274 6,276 Total non-U.S. debt securities — 22,392 337 22,729 State and political subdivisions — 10,000 38 10,038 Collateralized mortgage obligations — 2,443 — 2,443 Other U.S. debt securities — 2,780 19 2,799 U.S. equity securities — 45 — 45 Non-U.S. equity securities — 1 — 1 U.S. money-market mutual funds — 77 — 77 Total investment securities available-for-sale 231 57,449 1,345 59,025 Other assets: Derivative instruments: Foreign exchange contracts — 13,366 5 $ (9,243 ) 4,128 Total derivative instruments — 13,366 5 (9,243 ) 4,128 Other 56 — — — 56 Total assets carried at fair value $ 709 $ 71,289 $ 1,350 $ (9,243 ) $ 64,105 Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts $ — $ 13,309 $ 3 $ (7,337 ) $ 5,975 Interest-rate contracts 15 109 — (2 ) 122 Other derivative contracts — 356 — — 356 Total derivative instruments 15 13,774 3 (7,339 ) 6,453 Other 56 — — — 56 Total liabilities carried at fair value $ 71 $ 13,774 $ 3 $ (7,339 ) $ 6,509 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $3,097 million and $1,193 million , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of June 30, 2017 , the fair value of other asset-backed securities was primarily composed of $1,160 million of collateralized loan obligations. (3) As of June 30, 2017 , the fair value of other non-U.S. debt securities was primarily composed of $3,968 million of covered bonds and $1,264 million of corporate bonds. Fair-Value Measurements on a Recurring Basis as of December 31, 2016 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 30 $ — $ — $ 30 Non-U.S. government securities 495 174 — 669 Other — 325 — 325 Total trading account assets 525 499 — 1,024 AFS Investment securities: U.S. Treasury and federal agencies: Direct obligations 3,824 439 — 4,263 Mortgage-backed securities — 13,257 — 13,257 Asset-backed securities: Student loans — 5,499 97 5,596 Credit cards — 1,351 — 1,351 Sub-prime — 272 — 272 Other (2) — — 905 905 Total asset-backed securities — 7,122 1,002 8,124 Non-U.S. debt securities: Mortgage-backed securities — 6,535 — 6,535 Asset-backed securities — 2,484 32 2,516 Government securities — 5,836 — 5,836 Other (3) — 5,365 248 5,613 Total non-U.S. debt securities — 20,220 280 20,500 State and political subdivisions — 10,283 39 10,322 Collateralized mortgage obligations — 2,577 16 2,593 Other U.S. debt securities — 2,469 — 2,469 U.S. equity securities — 42 — 42 Non-U.S. equity securities — 3 — 3 U.S. money-market mutual funds — 409 — 409 Non-U.S. money-market mutual funds — 16 — 16 Total investment securities available-for-sale 3,824 56,837 1,337 61,998 Other assets: Derivatives instruments: Foreign exchange contracts — 16,476 8 $ (9,163 ) 7,321 Interest-rate contracts — 68 — (68 ) — Total derivative instruments — 16,544 8 (9,231 ) 7,321 Total assets carried at fair value $ 4,349 $ 73,880 $ 1,345 $ (9,231 ) $ 70,343 Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts $ — $ 15,948 $ 8 $ (10,456 ) $ 5,500 Interest-rate contracts — 348 — (226 ) 122 Other derivative contracts — 380 — — 380 Total derivative instruments — 16,676 8 (10,682 ) 6,002 Total liabilities carried at fair value $ — $ 16,676 $ 8 $ (10,682 ) $ 6,002 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $906 million and $2,356 million , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2016 , the fair value of other asset-backed securities was primarily composed of $905 million of collateralized loan obligations. (3) As of December 31, 2016 , the fair value of other non-U.S. debt securities was primarily composed of $3,769 million of covered bonds and $988 million of corporate bonds. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present activity related to our level 3 financial assets during the three and six months ended June 30, 2017 and 2016 , respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the three and six months ended June 30, 2017 and 2016 , transfers out of level 3 were mainly related to certain mortgage- and asset-backed securities, including non-U.S. debt securities, for which fair value was measured using prices for which observable market information became available. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended June 30, 2017 Fair Value as of Total Realized and Purchases Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of Change in (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: Asset-backed securities: Student loans $ 99 $ — $ — $ — $ — $ — $ (99 ) $ — Other 771 1 (1 ) 199 (120 ) 101 — 951 Total asset-backed securities 870 1 (1 ) 199 (120 ) 101 (99 ) 951 Non-U.S. debt securities: Asset-backed securities 59 1 (1 ) — (16 ) 51 (31 ) 63 Other 256 — — — 18 — — 274 Total Non-U.S. debt securities 315 1 (1 ) — 2 51 (31 ) 337 State and political subdivisions 39 — — — (1 ) — — 38 Collateralized mortgage obligations 39 — — — — — (39 ) — Other U.S. debt securities — — — 19 — — — 19 Total AFS investment securities 1,263 2 (2 ) 218 (119 ) 152 (169 ) 1,345 Other assets: Derivative instruments: Foreign exchange contracts 2 1 — 2 — — — 5 $ 2 Total derivative instruments 2 1 — 2 — — — 5 2 Total assets carried at fair value $ 1,265 $ 3 $ (2 ) $ 220 $ (119 ) $ 152 $ (169 ) $ 1,350 $ 2 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. Fair Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2017 Fair Value as of Total Realized and Purchases Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of June 30, 2017 Change in (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: Asset-backed securities: Student loans $ 97 $ — $ 2 $ — $ — $ — $ (99 ) $ — Other 905 2 (1 ) 354 (410 ) 101 — 951 Total asset-backed securities 1,002 2 1 354 (410 ) 101 (99 ) 951 Non-U.S. debt securities: Asset-backed securities 32 1 (1 ) 31 (20 ) 51 (31 ) 63 Other 248 — — 5 21 — — 274 Total Non-U.S. debt securities 280 1 (1 ) 36 1 51 (31 ) 337 State and political subdivisions 39 — — — (1 ) — — 38 Collateralized mortgage obligations 16 — — 23 — — (39 ) — Other U.S. debt securities — — — 19 — — — 19 Total AFS investment securities 1,337 3 — 432 (410 ) 152 (169 ) 1,345 Other assets: Derivative instruments: Foreign exchange contracts 8 (6 ) — 7 (4 ) — — 5 $ 2 Total derivative instruments 8 (6 ) — 7 (4 ) — — 5 2 Total assets carried at fair value $ 1,345 $ (3 ) $ — $ 439 $ (414 ) $ 152 $ (169 ) $ 1,350 $ 2 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. Fair-Value Measurements Using Significant Unobservable Inputs Three Months Ended June 30, 2016 Fair Value as of March 31, Total Realized and Purchases Settlements Transfers Fair Value as of June 30, 2016 (2) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2016 (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: U.S. Treasury and federal agencies, mortgage-backed securities $ 300 $ — $ — $ — $ — $ (275 ) $ 25 Asset-backed securities: Student loans 186 1 3 — — — 190 Other 1,813 9 (2 ) 19 (129 ) — 1,710 Total asset-backed securities 1,999 10 1 19 (129 ) — 1,900 Non-U.S. debt securities: Asset-backed securities 127 — — 53 (16 ) (53 ) 111 Other 295 — 2 (7 ) (29 ) 261 Total non-U.S. debt securities 422 — 2 53 (23 ) (82 ) 372 State and political subdivisions 32 — 1 — — — 33 Collateralized mortgage obligations 82 — — — (14 ) — 68 Total AFS investment securities 2,835 10 4 72 (166 ) (357 ) 2,398 Total assets carried at fair value $ 2,835 $ 10 $ 4 $ 72 $ (166 ) $ (357 ) $ 2,398 $ — (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. (2) There were no transfers of assets into level 3 during the three months ended June 30, 2016 . Fair-Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2016 Fair Value as of December 31, 2015 Total Realized and Purchases Settlements Transfers Fair Value as of June 30, 2016 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2016 (In millions) Recorded Recorded Assets: AFS Investment securities: U.S. Treasury and federal agencies, mortgage-backed securities $ — $ — $ — $ 300 $ — $ (275 ) $ 25 Asset-backed securities: Student loans 189 1 — — — — 190 Other 1,764 16 (13 ) 132 (189 ) — 1,710 Total asset-backed securities 1,953 17 (13 ) 132 (189 ) — 1,900 Non-U.S. debt securities: Asset-backed securities 174 — (1 ) 107 (34 ) (135 ) 111 Other 255 — — 29 6 (29 ) 261 Total non-U.S. debt securities 429 — (1 ) 136 (28 ) (164 ) 372 State and political subdivisions 33 — 1 — (1 ) — 33 Collateralized mortgage obligations 39 — — 50 (21 ) — 68 Other U.S. debt securities 10 — — — (10 ) — — Total AFS investment securities 2,464 17 (13 ) 618 (249 ) (439 ) 2,398 Other assets: Derivative instruments: Foreign exchange contracts 5 3 — — (8 ) — — $ — Total derivative instruments 5 3 — — (8 ) — — — Total assets carried at fair value $ 2,469 $ 20 $ (13 ) $ 618 $ (257 ) $ (439 ) $ 2,398 $ — |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | Fair-Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2016 Fair Value as of December 31, 2015 Total Realized and Settlements Fair Value as of June 30, 2016 (2) Change in Unrealized (In millions) Recorded in Revenue Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts $ 5 $ 5 $ (10 ) $ — $ — Total derivative instruments 5 5 (10 ) — — Total liabilities carried at fair value $ 5 $ 5 $ (10 ) $ — $ — (1) There were no transfers of assets into level 3 during the six months ended June 30, 2016 . (2) There were no transfers of liabilities into or out of level 3 during the six months ended June 30, 2016 . |
Fair Value Inputs, Assets, Quantitative Information | The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer. Quantitative Information about Level 3 Fair-Value Measurements Fair Value Weighted-Average (Dollars in millions) As of June 30, 2017 As of December 31, 2016 Valuation Technique Significant (1) As of June 30, 2017 As of December 31, 2016 Significant unobservable inputs readily available to State Street: Assets: Asset-backed securities, other $ — $ 1 Discounted cash flows Credit spread — % 0.3 % State and political subdivisions 38 39 Discounted cash flows Credit spread 1.9 1.8 Derivative instruments, foreign exchange contracts 5 8 Option model Volatility 7.1 14.4 Total $ 43 $ 48 Liabilities: Derivative instruments, foreign exchange contracts $ 3 $ 8 Option model Volatility 6.4 14.4 Total $ 3 $ 8 (1) Significant chan ges in these unobservable inputs would result in significant changes in fair value measurement. |
Fair Value Inputs, Liabilities, Quantitative Information | The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer. Quantitative Information about Level 3 Fair-Value Measurements Fair Value Weighted-Average (Dollars in millions) As of June 30, 2017 As of December 31, 2016 Valuation Technique Significant (1) As of June 30, 2017 As of December 31, 2016 Significant unobservable inputs readily available to State Street: Assets: Asset-backed securities, other $ — $ 1 Discounted cash flows Credit spread — % 0.3 % State and political subdivisions 38 39 Discounted cash flows Credit spread 1.9 1.8 Derivative instruments, foreign exchange contracts 5 8 Option model Volatility 7.1 14.4 Total $ 43 $ 48 Liabilities: Derivative instruments, foreign exchange contracts $ 3 $ 8 Option model Volatility 6.4 14.4 Total $ 3 $ 8 (1) Significant chan ges in these unobservable inputs would result in significant changes in fair value measurement. |
Carrying Value and Estimated Fair Value of Financial Instruments by Fair Value Hierarchy | The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair-value hierarchy, as of the dates indicated. Fair-Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) June 30, 2017 Financial Assets: Cash and due from banks $ 3,156 $ 3,156 $ 3,156 $ — $ — Interest-bearing deposits with banks 63,617 63,617 — 63,617 — Securities purchased under resale agreements 3,172 3,172 — 3,172 — Investment securities held-to-maturity 36,230 36,169 17,392 18,651 126 Net loans (excluding leases) 23,547 23,545 — 23,486 59 Financial Liabilities: Deposits: Non-interest-bearing $ 50,957 $ 50,957 $ — $ 50,957 $ — Interest-bearing - U.S. 24,438 24,438 — 24,438 — Interest-bearing - non-U.S. 106,021 106,021 — 106,021 — Securities sold under repurchase agreements 3,856 3,856 — 3,856 — Other short-term borrowings 1,465 1,465 — 1,465 — Long-term debt 11,737 12,022 — 11,710 312 Fair-Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) December 31, 2016 Financial Assets: Cash and due from banks $ 1,314 $ 1,314 $ 1,314 $ — $ — Interest-bearing deposits with banks 70,935 70,935 — 70,935 — Securities purchased under resale agreements 1,956 1,956 — 1,956 — Investment securities held-to-maturity 35,169 34,994 17,400 17,439 155 Net loans (excluding leases) 18,862 18,877 — 18,781 96 Financial Liabilities: Deposits: Non-interest-bearing $ 59,397 $ 59,397 $ — $ 59,397 $ — Interest-bearing - U.S. 30,911 30,911 — 30,911 — Interest-bearing - non-U.S. 96,855 96,855 — 96,855 — Securities sold under repurchase agreements 4,400 4,400 — 4,400 — Other short-term borrowings 1,585 1,585 — 1,585 — Long-term debt 11,430 11,618 — 11,282 336 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | The following table presents the amortized cost and fair value, and associated unrealized gains and losses, of investment securities as of the dates indicated: June 30, 2017 December 31, 2016 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value (In millions) Gains Losses Gains Losses Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 632 $ 3 $ 2 $ 633 $ 4,265 $ 7 $ 9 $ 4,263 Mortgage-backed securities 11,445 61 92 11,414 13,340 76 159 13,257 Asset-backed securities: Student loans (1) 5,871 36 20 5,887 5,659 12 75 5,596 Credit cards 1,575 3 22 1,556 1,377 — 26 1,351 Sub-prime 249 2 8 243 289 1 18 272 Other (2) 1,154 6 — 1,160 895 10 — 905 Total asset-backed securities 8,849 47 50 8,846 8,220 23 119 8,124 Non-U.S. debt securities: Mortgage-backed securities 6,925 40 3 6,962 6,506 35 6 6,535 Asset-backed securities 2,884 7 — 2,891 2,513 4 1 2,516 Government securities 6,614 6 20 6,600 5,834 8 6 5,836 Other (3) 6,247 34 5 6,276 5,587 31 5 5,613 Total non-U.S. debt securities 22,670 87 28 22,729 20,440 78 18 20,500 State and political subdivisions 9,747 328 37 10,038 10,233 201 112 10,322 Collateralized mortgage obligations 2,449 21 27 2,443 2,610 18 35 2,593 Other U.S. debt securities 2,804 17 22 2,799 2,481 18 30 2,469 U.S. equity securities 40 7 2 45 39 6 3 42 Non-U.S. equity securities 1 — — 1 3 — — 3 U.S. money-market mutual funds 77 — — 77 409 — — 409 Non-U.S. money-market mutual funds — — — — 16 — — 16 Total $ 58,714 $ 571 $ 260 $ 59,025 $ 62,056 $ 427 $ 485 $ 61,998 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 17,479 $ 27 $ 35 $ 17,471 $ 17,527 $ 17 $ 58 $ 17,486 Mortgage-backed securities 11,937 35 200 11,772 10,334 20 221 10,133 Asset-backed securities: Student loans (1) 2,738 17 15 2,740 2,883 5 30 2,858 Credit cards 858 3 — 861 897 2 — 899 Other 5 — — 5 35 — — 35 Total asset-backed securities 3,601 20 15 3,606 3,815 7 30 3,792 Non-U.S. debt securities: Mortgage-backed securities 1,084 80 10 1,154 1,150 70 15 1,205 Asset-backed securities 365 1 — 366 531 — — 531 Government securities 357 2 — 359 286 3 — 289 Other 122 — — 122 113 1 — 114 Total non-U.S. debt securities 1,928 83 10 2,001 2,080 74 15 2,139 Collateralized mortgage obligations 1,285 41 7 1,319 1,413 42 11 1,444 Total $ 36,230 $ 206 $ 267 $ 36,169 $ 35,169 $ 160 $ 335 $ 34,994 (1) Primarily composed of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans. (2) As of June 30, 2017 and December 31, 2016 , the fair value of other ABS was primarily composed of $1,160 million and $905 million , respectively, of collateralized loan obligations. (3) As of June 30, 2017 and December 31, 2016 , the fair value of other non-U.S. debt securities was primarily composed of $3,968 million and $3,769 million , respectively, of covered bonds and $1,264 million and $988 million , as of June 30, 2017 and December 31, 2016 , respectively, of corporate bonds. |
Schedule of Gross Pre-tax Unrealized Losses on Investment Securities | The following tables present the aggregate fair values of investment securities that have been in a continuous unrealized loss position for less than 12 months , and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated: Less than 12 months 12 months or longer Total June 30, 2017 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 154 $ 1 $ 164 $ 1 $ 318 $ 2 Mortgage-backed securities 5,877 83 536 9 6,413 92 Asset-backed securities: Student loans 233 1 2,449 19 2,682 20 Credit cards — — 498 22 498 22 Sub-prime — — 216 8 216 8 Total asset-backed securities 233 1 3,163 49 3,396 50 Non-U.S. debt securities: Mortgage-backed securities 342 1 648 2 990 3 Government securities 4,471 20 — — 4,471 20 Other 728 5 — — 728 5 Total non-U.S. debt securities 5,541 26 648 2 6,189 28 State and political subdivisions 1,636 33 224 4 1,860 37 Collateralized mortgage obligations 906 23 171 4 1,077 27 Other U.S. debt securities 1,147 18 159 4 1,306 22 U.S. equity securities — — 6 2 6 2 Total $ 15,494 $ 185 $ 5,071 $ 75 $ 20,565 $ 260 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 9,025 $ 34 $ 79 $ 1 $ 9,104 $ 35 Mortgage-backed securities 6,901 200 — — 6,901 200 Asset-backed securities: Student loans 619 8 728 7 1,347 15 Total asset-backed securities 619 8 728 7 1,347 15 Non-U.S. debt securities: Mortgage-backed securities — — 290 10 290 10 Total non-U.S. debt securities — — 290 10 290 10 Collateralized mortgage obligations 437 2 182 5 619 7 Total $ 16,982 $ 244 $ 1,279 $ 23 $ 18,261 $ 267 Less than 12 months 12 months or longer Total December 31, 2016 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 651 $ 8 $ 180 $ 1 $ 831 $ 9 Mortgage-backed securities 7,072 131 1,114 28 8,186 159 Asset-backed securities: Student loans 54 — 3,745 75 3,799 75 Credit cards 795 1 494 25 1,289 26 Sub-prime 1 — 252 18 253 18 Other 75 — — — 75 — Total asset-backed securities 925 1 4,491 118 5,416 119 Non-U.S. debt securities: Mortgage-backed securities 442 1 893 5 1,335 6 Asset-backed securities 253 — 276 1 529 1 Government securities 1,314 6 — — 1,314 6 Other 670 4 218 1 888 5 Total non-U.S. debt securities 2,679 11 1,387 7 4,066 18 State and political subdivisions 3,390 102 304 10 3,694 112 Collateralized mortgage obligations 1,259 31 162 4 1,421 35 Other U.S. debt securities 944 24 157 6 1,101 30 U.S. equity securities 8 — 5 3 13 3 Total $ 16,928 $ 308 $ 7,800 $ 177 $ 24,728 $ 485 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 8,891 $ 57 $ 86 $ 1 $ 8,977 $ 58 Mortgage-backed securities 6,838 221 — — 6,838 221 Asset-backed securities: Student loans 705 9 1,235 21 1,940 30 Credit cards 33 — — — 33 — Other 18 — 9 — 27 — Total asset-backed securities 756 9 1,244 21 2,000 30 Non-U.S. debt securities: Mortgage-backed securities 54 2 330 13 384 15 Asset-backed securities 28 — 35 — 63 — Government securities 180 — — — 180 — Total non-U.S. debt securities 262 2 365 13 627 15 Collateralized mortgage obligations 537 4 204 7 741 11 Total $ 17,284 $ 293 $ 1,899 $ 42 $ 19,183 $ 335 |
Investments Classified by Contractual Maturity Date | The following table presents contractual maturities of debt investment securities by carrying amount as of June 30, 2017 . The maturities of certain asset-backed securities, mortgage-backed securities, and collateralized mortgage obligations are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties. Under 1 Year 1 to 5 Years 6 to 10 Years Over 10 Years Total (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 231 $ 8 $ 52 $ 342 $ 633 Mortgage-backed securities 254 1,463 3,241 6,456 11,414 Asset-backed securities: Student loans 915 2,415 894 1,663 5,887 Credit cards — 1,006 550 — 1,556 Sub-prime — 2 2 239 243 Other — 122 1,038 — 1,160 Total asset-backed securities 915 3,545 2,484 1,902 8,846 Non-U.S. debt securities: Mortgage-backed securities 1,152 3,909 964 937 6,962 Asset-backed securities 370 2,261 260 — 2,891 Government securities 3,144 2,255 1,201 — 6,600 Other 2,030 3,535 711 — 6,276 Total non-U.S. debt securities 6,696 11,960 3,136 937 22,729 State and political subdivisions 398 2,493 5,181 1,966 10,038 Collateralized mortgage obligations — 158 771 1,514 2,443 Other U.S. debt securities 507 924 1,368 — 2,799 Total $ 9,001 $ 20,551 $ 16,233 $ 13,117 $ 58,902 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 1,199 $ 15,800 $ 414 $ 66 $ 17,479 Mortgage-backed securities — 182 1,386 10,369 11,937 Asset-backed securities: Student loans 307 246 291 1,894 2,738 Credit cards 124 734 — — 858 Other — 4 — 1 5 Total asset-backed securities 431 984 291 1,895 3,601 Non-U.S. debt securities: Mortgage-backed securities 223 242 51 568 1,084 Asset-backed securities 127 238 — — 365 Government securities 242 115 — — 357 Other 76 46 — — 122 Total non-U.S. debt securities 668 641 51 568 1,928 Collateralized mortgage obligations 7 15 483 780 1,285 Total $ 2,305 $ 17,622 $ 2,625 $ 13,678 $ 36,230 |
Schedule of Credit-Related Loss Activity Recognized in Earnings | The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated. Six Months Ended June 30, (In millions) 2017 2016 Balance, beginning of period $ 66 $ 92 Additions: Losses for which OTTI was not previously recognized — 1 Deductions: Previously recognized losses related to securities sold or matured (2 ) (2 ) Balance, end of period $ 64 $ 91 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Net Loans | The following table presents our recorded investment in loans and leases, by segment, as of the dates indicated: (In millions) June 30, 2017 December 31, 2016 Domestic: Commercial and financial: Loans to investment funds $ 13,795 $ 11,734 Senior secured bank loans 3,464 3,256 Loans to municipalities 1,909 1,352 Other 59 70 Commercial real estate — 27 Lease financing 297 338 Total domestic 19,524 16,777 Non-U.S.: Commercial and financial: Loans to investment funds 4,051 2,224 Senior secured bank loans 323 252 Lease financing 463 504 Total non-U.S. 4,837 2,980 Total loans and leases 24,361 19,757 Allowance for loan and lease losses (54 ) (53 ) Loans and leases, net of allowance $ 24,307 $ 19,704 |
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator | The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated: June 30, 2017 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 19,184 $ — $ 760 $ 19,944 Speculative (2) 4,417 — — 4,417 Total $ 23,601 $ — $ 760 $ 24,361 December 31, 2016 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 14,889 $ 27 $ 842 $ 15,758 Speculative (2) 3,984 — — 3,984 Substandard (3) 15 — — 15 Total $ 18,888 $ 27 $ 842 $ 19,757 (1) Investment-grade loans and leases consist of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment. (2) Speculative loans and leases consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met. (3) Substandard loans and leases consist of counterparties with well-defined weakness that jeopardizes repayment with the possibility we will sustain some loss. |
Schedule of Loans and Leases Receivable by Impairment Methodology | The following table presents our recorded investment in loans and leases, disaggregated based on our impairment methodology, as of the dates indicated: June 30, 2017 December 31, 2016 (In millions) Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases Loans and leases (1) : Individually evaluated for impairment $ — $ — $ — $ — $ 15 $ — $ — $ 15 Collectively evaluated for impairment 23,601 — 760 24,361 18,873 27 842 19,742 Total $ 23,601 $ — $ 760 $ 24,361 $ 18,888 $ 27 $ 842 $ 19,757 (1) For those portfolios where there are a small number of loans each with a large balance, we review each loan annually for indicators of impairment. For those loans where no such indicators are identified, the loans are collectively evaluated for impairment. As of June 30, 2017 , no loans were individually evaluated for impairment. As of December 31, 2016 , $0.2 million of the allowance for loan and lease loss related to commercial and financial loans were individually evaluated for impairment. |
Schedule of Activity in the Allowance for Loan Losses | The following table presents activity in the allowance for loan and lease losses for the periods indicated: Three Months Ended June 30, 2017 2016 (In millions) Total Loans and Leases Total Loans and Leases Allowance for loan and lease losses (1) : Beginning balance $ 51 $ 47 Provision for loan and lease losses 3 4 Charge-offs — — Ending balance $ 54 $ 51 Six Months Ended June 30, 2017 2016 (In millions) Total Loans and Leases Total Loans and Leases Allowance for loan and lease losses (1) : Beginning balance $ 53 $ 46 Provision for loan and lease losses 1 8 Charge-offs — (3 ) Ending balance $ 54 $ 51 (1) The provisions and charge-offs for loans and leases were attributable to exposure to senior secured loans to non-investment grade borrowers, purchased in connection with our participation in syndicated loans. |
Goodwill and Other Intangible33
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In The Carrying Amount Of Goodwill | The following table presents changes in the carrying amount of goodwill during the periods indicated: June 30, 2017 December 31, 2016 (In millions) Investment Servicing Investment Management Total Investment Servicing Investment Management Total Goodwill: Beginning balance $ 5,550 $ 264 $ 5,814 $ 5,641 $ 30 $ 5,671 Acquisitions (1) 17 — 17 — 236 236 Divestitures and other reductions (3 ) — (3 ) (11 ) — (11 ) Foreign currency translation 114 3 117 (80 ) (2 ) (82 ) Ending balance $ 5,678 $ 267 $ 5,945 $ 5,550 $ 264 $ 5,814 (1) Investment Management includes our acquisition of GEAM on July 1, 2016. |
Schedule of Finite-Lived Intangible Assets | The following table presents changes in the net carrying amount of other intangible assets during the periods indicated: June 30, 2017 December 31, 2016 (In millions) Investment Servicing Investment Management Total Investment Servicing Investment Management Total Other intangible assets: Beginning balance $ 1,539 $ 211 $ 1,750 $ 1,753 $ 15 $ 1,768 Acquisitions (1) 11 — 11 — 217 217 Divestitures (6 ) — (6 ) (8 ) — (8 ) Amortization (91 ) (15 ) (106 ) (186 ) (21 ) (207 ) Foreign currency translation and other, net 44 — 44 (20 ) — (20 ) Ending balance $ 1,497 $ 196 $ 1,693 $ 1,539 $ 211 $ 1,750 (1) Investment Management includes our acquisition of GEAM on July 1, 2016. The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated: June 30, 2017 December 31, 2016 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other intangible assets: Client relationships $ 2,621 $ (1,352 ) $ 1,269 $ 2,620 $ (1,306 ) $ 1,314 Core deposits 676 (299 ) 377 661 (277 ) 384 Other 132 (85 ) 47 132 (80 ) 52 Total $ 3,429 $ (1,736 ) $ 1,693 $ 3,413 $ (1,663 ) $ 1,750 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Assets [Abstract] | |
Components of Other Assets | The following table presents the components of other assets as of the dates indicated: (In millions) June 30, 2017 December 31, 2016 Receivable - securities lending (1) $ 22,531 $ 21,204 Derivative instruments, net 4,128 7,321 Bank-owned life insurance 3,197 3,158 Investments in joint ventures and other unconsolidated entities 2,115 2,363 Collateral, net 726 2,236 Accounts receivable 719 886 Prepaid expenses 475 333 Receivable for securities settlement 420 40 Income taxes receivable 221 106 Deferred tax assets, net of valuation allowance (2) 211 210 Deposits with clearing organizations 117 132 Other (3) 431 339 Total $ 35,291 $ 38,328 (1) Refer to Note 8 for further information on the impact of collateral on our financial statement presentation of securities borrowing transactions. (2) Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction. (3) Includes amounts held in escrow accounts at third parties related to the negotiated settlements in the transition management legal matter presented in Note 10. |
Derivative Financial Instrume35
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The table below summarizes the maturities and the paid fixed interest rates for the hedged senior and subordinated notes: June 30, 2017 Maturity Paid Fixed Interest Rate Senior Notes 2020 2.55% 2021 4.38 2021 1.95 2022 2.65 2023 3.70 2024 3.30 2025 3.55 2026 2.65 Subordinated Notes 2023 3.10 |
Schedule of Outstanding Hedges: (Notional Amount) | The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments entered into in connection with our trading and asset-and-liability management activities as of the dates indicated: (In millions) June 30, December 31, Derivatives not designated as hedging instruments: Interest-rate contracts: Futures $ 12,154 $ 13,455 Foreign exchange contracts: Forward, swap and spot 1,568,130 1,414,765 Options purchased 348 337 Options written 184 202 Futures 1 — Other: Stable value contracts 25,400 27,182 Deferred value awards (1)(2) 594 409 Derivatives designated as hedging instruments: Interest-rate contracts: Swap agreements 10,157 10,169 Foreign exchange contracts: Forward and swap 17,539 8,564 (1) Represents grants of deferred value awards to employees; refer to discussion in this note under "Derivatives Not Designated as Hedging Instruments." (2) Amount as of December 31, 2016 reflects $249 million related to the acceleration of expense associated with certain cash settled deferred incentive compensation awards. |
Notional Amount of Interest Rate Swap Agreements Designated as Fair Value and Cash Flow Hedges | The following tables present the aggregate notional amounts of these interest rate contracts and the related assets or liabilities being hedged as of the dates indicated: June 30, 2017 (In millions) Fair Value Hedges Cash Total Investment securities available-for-sale $ 1,364 $ — $ 1,364 Long-term debt (1) 8,493 — 8,493 Floating-rate loans — 300 300 Total $ 9,857 $ 300 $ 10,157 December 31, 2016 (2) (In millions) Fair Value Hedges Investment securities available-for-sale $ 1,444 Long-term debt (1) 8,725 Total $ 10,169 (1) As of June 30, 2017 , these fair value hedges increased the carrying value of long-term debt presented in our consolidated statement of condition by $12 million . As of December 31, 2016 , these fair value hedges decreased the carrying value of long-term debt presented in our consolidated statement of condition by $15 million . (2) |
Contractual and Weighted-Average Interest Rates, Which Include the Effects of Hedges Related to Financial Instruments | The following table presents the contractual and weighted-average interest rates for long-term debt, which include the effects of the fair value hedges presented in the table above, for the periods indicated: Three Months Ended June 30, 2017 2016 Contractual Rates Rate Including Impact of Hedges Contractual Rates Rate Including Impact of Hedges Long-term debt 3.34 % 2.61 % 3.43 % 2.24 % Six Months Ended June 30, 2017 2016 Contractual Rate Contractual Rate Long-term debt 3.37 % 2.58 % 3.43 % 2.22 % |
Schedule of the Fair Values of Derivative Financial Instruments | The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8 to the consolidated financial statements in this Form 10-Q. Derivative Assets (1) Fair Value (In millions) June 30, December 31, 2016 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 13,323 $ 15,982 Total $ 13,323 $ 15,982 Derivatives designated as hedging instruments: Foreign exchange contracts $ 48 $ 502 Interest-rate contracts — 68 Total $ 48 $ 570 (1) Derivative assets are included within other assets in our consolidated statement of condition. Derivative Liabilities (1) Fair Value (In millions) June 30, December 31, 2016 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 13,166 $ 15,881 Other derivative contracts 356 380 Total $ 13,522 $ 16,261 Derivatives designated as hedging instruments: Foreign exchange contracts $ 146 $ 75 Interest-rate contracts 124 348 Total $ 270 $ 423 (1) Derivative liabilities are included within other liabilities in our consolidated statement of condition. |
Impact of Derivatives on Consolidated Statement of Income | The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Three Months Ended June 30, Six Months Ended June 30, (In millions) 2017 2016 2017 2016 Derivatives not designated as hedging instruments: Foreign exchange contracts Trading services revenue $ 170 $ 162 $ 333 $ 316 Interest-rate contracts Processing fees and other revenue — — — 1 Interest-rate contracts Trading services revenue 8 (3 ) 9 (4 ) Credit derivative contracts Trading services revenue — — — (1 ) Other derivative contracts Trading services revenue — (4 ) — (4 ) Other derivative contracts Compensation and employee benefits (29 ) 57 (95 ) 127 Total $ 149 $ 212 $ 247 $ 435 Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income Three Months Ended June 30, Three Months Ended June 30, (In millions) 2017 2016 2017 2016 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and $ 4 $ (25 ) Investment securities Processing fees and $ (4 ) $ 25 Foreign exchange contracts Processing fees and other revenue 102 (2 ) FX deposit Processing fees and other revenue (101 ) 2 Interest-rate contracts Processing fees and other revenue 3 (6 ) Available-for-sale securities Processing fees and other revenue (1) (2 ) 6 Interest-rate contracts Processing fees and 64 128 Long-term debt Processing fees and (63 ) (121 ) Total $ 173 $ 95 $ (170 ) $ (88 ) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain Six Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and $ 2 $ 19 Investment securities Processing fees and $ (2 ) $ (19 ) Foreign exchange contracts Processing fees and other revenue 1,081 246 FX deposit Processing fees and other revenue (1,081 ) (246 ) Interest-rate contracts Processing fees and 15 (36 ) Available-for-sale securities Processing fees and (2) (13 ) 37 Interest-rate contracts Processing fees and 44 376 Long-term debt Processing fees and (44 ) (361 ) Total $ 1,142 $ 605 $ (1,140 ) $ (589 ) |
Schedule of Differences Between the Gains (Losses) on the Derivative and the Gains (Losses) on the Hedged Item | Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income Three Months Ended June 30, Three Months Ended June 30, (In millions) 2017 2016 2017 2016 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and $ 4 $ (25 ) Investment securities Processing fees and $ (4 ) $ 25 Foreign exchange contracts Processing fees and other revenue 102 (2 ) FX deposit Processing fees and other revenue (101 ) 2 Interest-rate contracts Processing fees and other revenue 3 (6 ) Available-for-sale securities Processing fees and other revenue (1) (2 ) 6 Interest-rate contracts Processing fees and 64 128 Long-term debt Processing fees and (63 ) (121 ) Total $ 173 $ 95 $ (170 ) $ (88 ) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain Six Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and $ 2 $ 19 Investment securities Processing fees and $ (2 ) $ (19 ) Foreign exchange contracts Processing fees and other revenue 1,081 246 FX deposit Processing fees and other revenue (1,081 ) (246 ) Interest-rate contracts Processing fees and 15 (36 ) Available-for-sale securities Processing fees and (2) (13 ) 37 Interest-rate contracts Processing fees and 44 376 Long-term debt Processing fees and (44 ) (361 ) Total $ 1,142 $ 605 $ (1,140 ) $ (589 ) (1) In the three months ended June 30, 2017 and 2016 , $3 million and $(3) million , respectively, of net unrealized gains (losses) on AFS investment securities designated in fair value hedges were recognized in OCI. (2) In the six months ended June 30, 2017 and 2016 , $9 million and $(22) million , respectively, of net unrealized gains (losses) on AFS investment securities designated in fair value hedges were recognized in OCI. Differences between the gains (losses) on the derivative and the gains (losses) on the hedged item, excluding any amounts recorded in NII, represent hedge ineffectiveness. Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, (In millions) 2017 2016 2017 2016 2017 2016 Derivatives designated as cash flow hedges: Interest-rate contracts $ (1 ) $ — Net interest income $ — $ — Net interest income $ — $ — Foreign exchange contracts 14 (114 ) Net interest income — — Net interest income 7 6 Total $ 13 $ (114 ) $ — $ — $ 7 $ 6 Derivatives designated as net investment hedges: Foreign exchange contracts $ (87 ) $ 51 Gains (Losses) related to investment securities, net $ — $ — Gains (Losses) related to investment securities, net $ — $ — Total $ (87 ) $ 51 $ — $ — $ — $ — Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, (In millions) 2017 2016 2017 2016 2017 2016 Derivatives designated as cash flow hedges: Interest-rate contracts $ (1 ) $ — Net interest income $ — $ — Net interest income $ — $ — Foreign exchange contracts (92 ) (227 ) Net interest income — — Net interest income 13 11 Total $ (93 ) $ (227 ) $ — $ — $ 13 $ 11 Derivatives designated as net investment hedges: Foreign exchange contracts $ (101 ) $ 51 Gains (Losses) related to investment securities, net $ — $ — Gains (Losses) related to investment securities, net $ — $ — Total $ (101 ) $ 51 $ — $ — $ — $ — |
Offsetting Arrangements (Tables
Offsetting Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Offsetting [Abstract] | |
Offsetting Assets | The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated: Assets: June 30, 2017 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 13,371 $ (6,146 ) $ 7,225 $ 7,225 Cash collateral and securities netting NA (3,097 ) (3,097 ) $ (167 ) (3,264 ) Total derivatives 13,371 (9,243 ) 4,128 (167 ) 3,961 Other financial instruments: Resale agreements and securities borrowing (6) 60,700 (34,997 ) 25,703 (25,703 ) — Total derivatives and other financial instruments $ 74,071 $ (44,240 ) $ 29,831 $ (25,870 ) $ 3,961 Assets: December 31, 2016 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 16,484 $ (8,257 ) $ 8,227 $ 8,227 Interest-rate contracts 68 (68 ) — — Cash collateral and securities netting NA (906 ) (906 ) $ (247 ) (1,153 ) Total derivatives 16,552 (9,231 ) 7,321 (247 ) 7,074 Other financial instruments: Resale agreements and securities borrowing (6) 58,677 (35,517 ) 23,160 (22,939 ) 221 Total derivatives and other financial instruments $ 75,229 $ (44,748 ) $ 30,481 $ (23,186 ) $ 7,295 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which is also carried at fair value. For additional information about the measurement basis of these instruments, refer to pages 131 to 142 in Notes 1 and 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities in connection with our securities borrowing transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Included in the $25,703 million as of June 30, 2017 were $3,172 million of resale agreements and $22,531 million of collateral provided related to securities borrowing. Included in the $23,160 million as of December 31, 2016 were $1,956 million of resale agreements and $21,204 million of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Additional information about principal securities finance transactions is provided in Note 9 to the consolidated financial statements in this Form 10-Q. NA Not applicable |
Offsetting Liabilities | The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated: Liabilities: June 30, 2017 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Cash and Securities Provided (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 13,312 $ (6,145 ) $ 7,167 $ 7,167 Interest-rate contracts (6) 124 (2 ) 122 122 Other derivative contracts 356 — 356 356 Cash collateral and securities netting NA (1,193 ) (1,193 ) $ (318 ) (1,511 ) Total derivatives 13,792 (7,340 ) 6,452 (318 ) 6,134 Other financial instruments: Repurchase agreements and securities lending (7) 43,168 (34,997 ) 8,171 (5,844 ) 2,327 Total derivatives and other financial instruments $ 56,960 $ (42,337 ) $ 14,623 $ (6,162 ) $ 8,461 Liabilities: December 31, 2016 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Cash and Securities Provided (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 15,956 $ (8,253 ) $ 7,703 $ 7,703 Interest-rate contracts 348 (73 ) 275 275 Other derivative contracts 380 — 380 380 Cash collateral and securities netting NA (2,356 ) (2,356 ) $ (180 ) (2,536 ) Total derivatives 16,684 (10,682 ) 6,002 (180 ) 5,822 Other financial instruments: Resale agreements and securities lending (7) 44,933 (35,517 ) 9,416 (7,059 ) 2,357 Total derivatives and other financial instruments $ 61,617 $ (46,199 ) $ 15,418 $ (7,239 ) $ 8,179 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which is also carried at fair value. For additional information about the measurement basis of these instruments, refer to pages 131 to 142 in Notes 1 and 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities provided in connection with our securities lending transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Variation margin payments presented as settlements rather than collateral. (7) Included in the $8,171 million as of June 30, 2017 were $3,856 million of repurchase agreements and $4,315 million of collateral received related to securities lending. Included in the $9,416 million as of December 31, 2016 were $4,400 million of repurchase agreements and $5,016 million of collateral received related to securities lending. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilit ies, respectively, in our consolidated statement of condition. Additional information about principal securities finance transactions is provided in Note 9 to the consolidated financial statements in this Form 10-Q. NA Not applicable |
Securities Sold and Securities Loaned Under Repurchase Agreements | The following tables summarize our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated: Remaining Contractual Maturity of the Agreements As of June 30, 2017 (In millions) Overnight and Continuous Up to 30 days 30 – 90 days Total Repurchase agreements: U.S. Treasury and agency securities $ 33,960 $ — $ — $ 33,960 Total 33,960 — — 33,960 Securities lending transactions: Corporate debt securities 45 — — 45 Equity securities 8,670 — 437 9,107 Non-U.S. sovereign debt 56 — — 56 Total 8,771 — 437 9,208 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 42,731 $ — $ 437 $ 43,168 Remaining Contractual Maturity of the Agreements As of December 31, 2016 (In millions) Overnight and Continuous Up to 30 days 30 – 90 days Total Repurchase agreements: U.S. Treasury and agency securities $ 35,509 $ — $ — $ 35,509 Total 35,509 — — 35,509 Securities lending transactions: Corporate debt securities 53 — — 53 Equity securities 8,337 — 1,034 9,371 Total 8,390 — 1,034 9,424 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 43,899 $ — $ 1,034 $ 44,933 |
Commitments and Guarantees (Tab
Commitments and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | The following table presents the aggregate gross contractual amounts of our off-balance sheet commitments and off-balance sheet guarantees as of the dates indicated. (In millions) June 30, 2017 December 31, 2016 Commitments: Unfunded credit facilities $ 26,708 $ 26,993 Guarantees (1) : Indemnified securities financing $ 370,472 $ 360,452 Stable value protection 25,400 27,182 Standby letters of credit 3,410 3,459 (1) The potential losses associated with these guarantees equal the gross contractual amounts and do not consider the value of any collateral or reflect any participations to independent third parties. |
Schedule of Repurchase Agreements | The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated: (In millions) June 30, 2017 December 31, 2016 Fair value of indemnified securities financing $ 370,472 $ 360,452 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 387,747 377,919 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 64,824 60,003 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 69,100 63,959 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of Preferred Shares | The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of June 30, 2017 : Issuance Date Depositary Shares Issued Ownership Interest Per Depositary Share Liquidation Preference Per Share Liquidation Preference Per Depositary Share Net Proceeds of Offering (In millions) Redemption Date (1) Preferred Stock (2) : Series C August 2012 20,000,000 1/4,000th $ 100,000 $ 25 $ 488 September 15, 2017 Series D February 2014 30,000,000 1/4,000th 100,000 25 742 March 15, 2024 Series E November 2014 30,000,000 1/4,000th 100,000 25 728 December 15, 2019 Series F May 2015 750,000 1/100th 100,000 1,000 742 September 15, 2020 Series G April 2016 20,000,000 1/4,000th 100,000 25 493 March 15, 2026 (1) On the redemption date, or any dividend declaration date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. (2) The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. |
Dividends Declared | The table below presents the dividends declared on common stock for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) 2017 2016 2017 2016 Common Stock $ 0.38 $ 142 $ 0.34 $ 133 $ 0.76 $ 286 $ 0.68 $ 268 The following tables present the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated: Three Months Ended June 30, 2017 2016 Dividends Declared per Share Dividends Declared per Depositary Share Total (1) Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C $ 1,313 $ 0.33 $ 7 $ 1,313 $ 0.33 $ 6 Series D 1,475 0.37 11 1,475 0.37 11 Series E 1,500 0.38 11 1,500 0.38 11 Series F — — — — — — Series G 1,338 0.33 7 951 0.24 5 Total $ 36 $ 33 Six Months Ended June 30, 2017 2016 Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C $ 2,626 $ 0.66 $ 13 $ 2,626 $ 0.66 $ 13 Series D 2,950 0.74 22 2,950 0.74 22 Series E 3,000 0.76 22 3,000 0.76 22 Series F 2,625 26.25 20 2,625 26.25 20 Series G 2,676 0.66 14 951 0.24 5 Total $ 91 $ 82 (1) Dividends were paid in June 2017. |
Stock Repurchase Program | The table below presents the activity under the 2016 Program during the periods indicated: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Shares Acquired Average Cost per Share Total Acquired Shares Acquired Average Cost per Share Total Acquired 2016 Program (1) 2.7 $ 83.84 $ 227 9.4 $ 79.93 $ 750 (1) Includes $158 million relating to shares acquired in exchange for BFDS stock during the first quarter of 2017. Additional information about the exchange is provided in Note 1 to the consolidated financial statements included in this Form 10-Q. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the after-tax components of AOCI as of the dates indicated: (In millions) June 30, 2017 December 31, 2016 Net unrealized gains (losses) on cash flow hedges $ (18 ) $ 229 Net unrealized gains (losses) on available-for-sale securities portfolio 254 (225 ) Net unrealized gains (losses) related to reclassified available-for-sale securities 18 25 Net unrealized gains (losses) on available-for-sale securities 272 (200 ) Net unrealized losses on available-for-sale securities designated in fair value hedges (77 ) (86 ) Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries (6 ) 95 Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (7 ) (9 ) Net unrealized losses on retirement plans (186 ) (194 ) Foreign currency translation (1,248 ) (1,875 ) Total $ (1,270 ) $ (2,040 ) The following table presents changes in AOCI by component, net of related taxes, for the periods indicated: Six Months Ended June 30, 2017 (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2016 $ 229 $ (286 ) $ 95 $ (9 ) $ (194 ) $ (1,875 ) $ (2,040 ) Other comprehensive income (loss) before reclassifications (247 ) 505 (101 ) 2 (1 ) 627 785 Amounts reclassified into (out of) earnings — (24 ) — — 9 — (15 ) Other comprehensive income (loss) (247 ) 481 (101 ) 2 8 627 770 Balance as of June 30, 2017 $ (18 ) $ 195 $ (6 ) $ (7 ) $ (186 ) $ (1,248 ) $ (1,270 ) Six Months Ended June 30, 2016 (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gain (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2015 $ 293 $ (128 ) $ (14 ) $ (16 ) $ (183 ) $ (1,394 ) $ (1,442 ) Other comprehensive income (loss) before reclassifications (174 ) 522 51 4 (4 ) 43 442 Amounts reclassified into (out of) earnings — 2 — (1 ) 2 — 3 Other comprehensive income (loss) (174 ) 524 51 3 (2 ) 43 445 Balance as of June 30, 2016 $ 119 $ 396 $ 37 $ (13 ) $ (185 ) $ (1,351 ) $ (997 ) |
Schedule of Reclassifications Out of AOCI | The following table presents after-tax reclassifications into earnings for the periods indicated: Three Months Ended June 30, 2017 2016 (In millions) Amounts Reclassified into (out of) Earnings Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains (losses) from sales of available-for-sale securities $ — $ (1 ) Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit — (1 ) Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of $1 and ($1), respectively 3 1 Compensation and employee benefits expenses Total reclassifications (out of) into AOCI $ 3 $ (1 ) Six Months Ended June 30, 2017 2016 (In millions) Amounts Reclassified into (out of) Earnings Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains (losses) from sales of available-for-sale securities, net of related taxes of $16 and ($1), respectively $ (24 ) $ 2 Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit — (1 ) Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of ($2) and ($3), respectively 9 2 Compensation and employee benefits expenses Total reclassifications (out of) into AOCI $ (15 ) $ 3 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Regulatory Capital | The following table presents the regulatory capital structure, total risk-weighted assets, related regulatory capital ratios and the minimum required regulatory capital ratios for State Street and State Street Bank as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III final rule are phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table. State Street State Street Bank (In millions) Basel III Advanced Approaches June 30, 2017 (1) Basel III Standardized Approach June 30, 2017 (2) Basel III Advanced Approaches December 31, 2016 (1) Basel III Standardized Approach December 31, 2016 (2) Basel III Advanced Approaches June 30, 2017 (1) Basel III Standardized Approach June 30, 2017 (2) Basel III Advanced Approaches December 31, 2016 (1) Basel III Standardized Approach December 31, 2016 (2) Common shareholders' equity: Common stock and related surplus $ 10,307 $ 10,307 $ 10,286 $ 10,286 $ 11,382 $ 11,382 $ 11,376 $ 11,376 Retained earnings 18,202 18,202 17,459 17,459 12,188 12,188 12,285 12,285 Accumulated other comprehensive income (loss) (1,266 ) (1,266 ) (1,936 ) (1,936 ) (1,060 ) (1,060 ) (1,648 ) (1,648 ) Treasury stock, at cost (8,367 ) (8,367 ) (7,682 ) (7,682 ) — — — — Total 18,876 18,876 18,127 18,127 22,510 22,510 22,013 22,013 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (3) (6,714 ) (6,714 ) (6,348 ) (6,348 ) (6,417 ) (6,417 ) (6,060 ) (6,060 ) Other adjustments (155 ) (155 ) (155 ) (155 ) (91 ) (91 ) (148 ) (148 ) Common equity tier 1 capital 12,007 12,007 11,624 11,624 16,002 16,002 15,805 15,805 Preferred stock 3,196 3,196 3,196 3,196 — — — — Trust preferred capital securities subject to phase-out from tier 1 capital — — — — — — — — Other adjustments (38 ) (38 ) (103 ) (103 ) — — — — Tier 1 capital 15,165 15,165 14,717 14,717 16,002 16,002 15,805 15,805 Qualifying subordinated long-term debt 1,074 1,074 1,172 1,172 1,078 1,078 1,179 1,179 Trust preferred capital securities phased out of tier 1 capital — — — — — — — — ALLL and other 4 75 19 77 — 75 15 77 Other adjustments — — 1 1 — — — — Total capital $ 16,243 $ 16,314 $ 15,909 $ 15,967 $ 17,080 $ 17,155 $ 16,999 $ 17,061 Risk-weighted assets: Credit risk $ 52,755 $ 105,785 $ 50,900 $ 98,125 $ 50,010 $ 102,642 $ 47,383 $ 94,413 Operational risk (4) 44,123 NA 44,579 NA 43,552 NA 44,043 NA Market risk (5) 3,387 1,284 3,822 1,751 3,388 1,284 3,822 1,751 Total risk-weighted assets $ 100,265 $ 107,069 $ 99,301 $ 99,876 $ 96,950 $ 103,926 $ 95,248 $ 96,164 Adjusted quarterly average assets $ 216,940 $ 216,940 $ 226,310 $ 226,310 $ 214,022 $ 214,022 $ 222,584 $ 222,584 Capital Ratios: 2017 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (6) 2016 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (7) Common equity tier 1 capital 6.5 % 5.5 % 12.0 % 11.2 % 11.7 % 11.6 % 16.5 % 15.4 % 16.6 % 16.4 % Tier 1 capital 8.0 7.0 15.1 14.2 14.8 14.7 16.5 15.4 16.6 16.4 Total capital 10.0 9.0 16.2 15.2 16.0 16.0 17.6 16.5 17.8 17.7 Tier 1 leverage 4.0 4.0 7.0 7.0 6.5 6.5 7.5 7.5 7.1 7.1 (1) Common equity tier 1 capital, tier 1 capital and total capital ratios as of June 30, 2017 and December 31, 2016 were calculated in conformity with the advanced approaches provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2017 and December 31, 2016 were calculated in conformity with the Basel III final rule. (2) Common equity tier 1 capital, tier 1 capital and total capital ratios as of June 30, 2017 and December 31, 2016 were calculated in conformity with the standardized approach provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2017 and December 31, 2016 were calculated in conformity with the Basel III final rule. (3) Amounts for State Street and State Street Bank as of June 30, 2017 consisted of goodwill, net of associated deferred tax liabilities, and 80% of other intangible assets, net of associated deferred tax liabilities. Amounts for State Street and State Street Bank as of December 31, 2016 consisted of goodwill, net of deferred tax liabilities and 60% of other intangible assets, net of associated deferred tax liabilities. Intangible assets, net of associated deferred tax liabilities is phased in as a deduction from capital, in conformity with the Basel III final rule. (4) Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational risk RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs. (5) Market risk risk-weighted assets reported in conformity with the Basel III advanced approaches included a CVA which reflected the risk of potential fair-value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts. The CVA was not provided for in the final market risk capital rule; however, it was required by the advanced approaches provisions of the Basel III final rule. We used a simple CVA approach in conformity with the Basel III advanced approaches. (6) Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of June 30, 2017 . (7) Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2016 . |
Net Interest Income (Tables)
Net Interest Income (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Components of Interest Revenue and Interest Expense | The following table presents the components of interest income and interest expense, and related NII, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2017 2016 2017 2016 Interest income: Deposits with banks $ 41 $ 30 $ 76 $ 73 Investment securities: U.S. Treasury and federal agencies 208 209 420 420 State and political subdivisions 56 54 114 108 Other investments 164 189 323 371 Securities purchased under resale agreements 69 35 115 71 Loans and leases 118 93 224 184 Other interest-earning assets 44 10 78 22 Total interest income 700 620 1,350 1,249 Interest expense: Deposits 14 16 57 54 Securities sold under repurchase agreements — — 1 1 Short-term borrowings 3 2 5 2 Long-term debt 75 62 148 122 Other interest-bearing liabilities 33 19 54 37 Total interest expense 125 99 265 216 Net interest income $ 575 $ 521 $ 1,085 $ 1,033 |
Expenses (Tables)
Expenses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Expenses [Abstract] | |
Schedule of Expenses | The following table presents the components of other expenses for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2017 2016 2017 2016 Insurance $ 28 $ 21 $ 58 $ 44 Regulatory fees and assessments 18 18 45 38 Securities processing 9 6 16 10 Litigation (17 ) — (17 ) — Other 94 93 181 158 Total other expenses $ 132 $ 138 $ 283 $ 250 |
Restructuring and Related Costs | The following table presents aggregate restructuring activity for the periods indicated: (In millions) Employee Real Estate Asset and Other Write-offs Total Accrual Balance at December 31, 2015 $ 9 $ 11 $ 3 $ 23 Accruals for State Street Beacon 86 — 11 97 Payments and Other Adjustments (4 ) (1 ) (7 ) (12 ) Accrual Balance at March 31, 2016 $ 91 $ 10 $ 7 $ 108 Accruals for State Street Beacon (1 ) 15 (1 ) 13 Payments and Other Adjustments (35 ) (3 ) (1 ) (39 ) Accrual Balance at June 30, 2016 $ 55 $ 22 $ 5 $ 82 Accrual Balance at December 31, 2016 $ 37 $ 17 $ 2 $ 56 Accruals for State Street Beacon 14 — 2 16 Payments and Other Adjustments (13 ) (3 ) (2 ) (18 ) Accrual Balance at March 31, 2017 $ 38 $ 14 $ 2 $ 54 Accruals for State Street Beacon 60 — 2 62 Payments and other adjustments (11 ) (3 ) (2 ) (16 ) Accrual Balance at June 30, 2017 $ 87 $ 11 $ 2 $ 100 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per common share for the periods indicated: Three Months Ended June 30, (Dollars in millions, except per share amounts) 2017 2016 Net income $ 620 $ 619 Less: Preferred stock dividends (36 ) (33 ) Dividends and undistributed earnings allocated to participating securities (1) — (1 ) Net income available to common shareholders $ 584 $ 585 Average common shares outstanding (In thousands): Basic average common shares 375,395 394,160 Effect of dilutive securities: equity-based awards 5,520 4,687 Diluted average common shares 380,915 398,847 Anti-dilutive securities (2) 293 3,277 Earnings per Common Share: Basic $ 1.56 $ 1.48 Diluted (3) 1.53 1.47 Six Months Ended June 30, (Dollars in millions, except per share amounts) 2017 2016 Net income $ 1,122 $ 987 Less: Preferred stock dividends (91 ) (82 ) Dividends and undistributed earnings allocated to participating securities (1) (1 ) (1 ) Net income available to common shareholders $ 1,030 $ 904 Average common shares outstanding (In thousands): Basic average common shares 378,293 396,790 Effect of dilutive securities: equity-based awards 5,196 4,323 Diluted average common shares 383,489 401,113 Anti-dilutive securities (2) 527 3,426 Earnings per Common Share: Basic $ 2.72 $ 2.28 Diluted (3) 2.69 2.25 (1) Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings. (2) Represents equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive. Additional information about equity-based awards is provided in Note 18 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K. (3) Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method. |
Line of Business Information (T
Line of Business Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Summary of Line of Business Results | The following is a summary of our line-of-business results for the periods indicated. The "Other" column represents costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies. Three Months Ended June 30, Investment Investment Other Total (Dollars in millions) 2017 2016 2017 2016 2017 2016 2017 2016 Servicing fees $ 1,339 $ 1,239 $ — $ — $ — $ — $ 1,339 $ 1,239 Management fees — — 397 293 — — 397 293 Trading services 272 254 17 13 — — 289 267 Securities finance 179 156 — — — — 179 156 Processing fees and other 32 103 (1 ) (5 ) — — 31 98 Total fee revenue 1,822 1,752 413 301 — — 2,235 2,053 Net interest income 576 520 (1 ) 1 — — 575 521 Gains (losses) related to investment securities, net — (1 ) — — — — — (1 ) Total revenue 2,398 2,271 412 302 — — 2,810 2,573 Provision for loan losses 3 4 — — — — 3 4 Total expenses 1,649 1,599 311 244 71 17 2,031 1,860 Income before income tax expense $ 746 $ 668 $ 101 $ 58 $ (71 ) $ (17 ) $ 776 $ 709 Pre-tax margin 31 % 29 % 25 % 19 % 28 % 28 % Six Months Ended June 30, Investment Investment Other Total (Dollars in millions) 2017 2016 2017 2016 2017 2016 2017 2016 Servicing fees $ 2,635 $ 2,481 $ — $ — $ — $ — $ 2,635 $ 2,481 Management fees — — 779 563 — — 779 563 Trading services 529 512 35 27 — — 564 539 Securities finance 312 290 — — — — 312 290 Processing fees and other 138 152 5 (2 ) — — 143 150 Total fee revenue 3,614 3,435 819 588 — — 4,433 4,023 Net interest income 1,085 1,032 — 1 — — 1,085 1,033 Gains (losses) related to investment securities, net (40 ) 1 — — — — (40 ) 1 Total revenue 4,659 4,468 — 819 589 — — 5,478 5,057 Provision for loan losses 1 8 — — — — 1 8 Total expenses 3,377 3,286 640 500 100 124 4,117 3,910 Income before income tax expense $ 1,281 $ 1,174 $ 179 $ 89 $ (100 ) $ (124 ) $ 1,360 $ 1,139 Pre-tax margin 27 % 26 % 22 % 15 % 25 % 23 % |
Non-U.S. Activities (Tables)
Non-U.S. Activities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Results from Non-U.S. Operations | The following table presents our U.S. and non-U.S. financial results for the periods indicated: Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 (In millions) Non-U.S. U.S. Total Non-U.S. U.S. Total Total revenue $ 1,172 $ 1,638 $ 2,810 $ 1,136 $ 1,437 $ 2,573 Income before income taxes 324 452 776 344 365 709 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 (In millions) Non-U.S. U.S. Total Non-U.S. U.S. Total Total revenue $ 2,268 $ 3,210 $ 5,478 $ 2,161 $ 2,896 $ 5,057 Income before income taxes 583 777 1,360 521 618 1,139 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Basis of Presentation (Details) - Boston Financial Data Services, Inc. and International Financial Data Services - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2017 | Jun. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash received | $ 175 | |
Common stock received | $ 158 | |
Gain on sale | $ 30 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - New Accounting Pronouncement (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Accounting Standards Update 2016-09 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Tax benefit | $ 11 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Assets, level 1 to level 2 transfers | $ 0 | $ 0 |
Assets, level 2 to level 1 transfers | 9,000,000 | 0 |
Liabilities, level 1 to level 2 transfers | 0 | 0 |
Liabilities, level 2 to level 1 transfers | $ 0 | $ 0 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | $ 896 | $ 1,024 |
Investment securities available-for-sale | 59,025 | 61,998 |
Derivative asset, collateral, cash offset | (3,097) | (906) |
Derivative liability, collateral, cash offset | (1,193) | (2,356) |
Collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,160 | 905 |
Non-US debt securities, covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 3,968 | 3,769 |
Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,264 | 988 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 896 | 1,024 |
Investment securities available-for-sale | 59,025 | 61,998 |
Derivative asset, Impact of Netting | (9,243) | (9,231) |
Derivative assets | 4,128 | 7,321 |
Other | 56 | |
Total | 64,105 | 70,343 |
Derivative liability, Impact of Netting | (7,339) | (10,682) |
Derivative liabilities | 6,453 | 6,002 |
Other | 56 | |
Total liabilities carried at fair value | 6,509 | 6,002 |
Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | (9,243) | (9,163) |
Derivative assets | 4,128 | 7,321 |
Derivative liability, Impact of Netting | (7,337) | (10,456) |
Derivative liabilities | 5,975 | 5,500 |
Recurring | Interest-rate contracts(6) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | (68) | |
Derivative assets | 0 | |
Derivative liability, Impact of Netting | (2) | (226) |
Derivative liabilities | 122 | 122 |
Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, Impact of Netting | 0 | 0 |
Derivative liabilities | 356 | 380 |
Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 39 | 30 |
Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 497 | 669 |
Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 360 | 325 |
Investment securities available-for-sale | 2,799 | 2,469 |
Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 633 | 4,263 |
Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 11,414 | 13,257 |
Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 5,887 | 5,596 |
Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,556 | 1,351 |
Recurring | Asset-backed securities, sub-prime | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 243 | 272 |
Recurring | Asset-backed securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,160 | 905 |
Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 8,846 | 8,124 |
Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,962 | 6,535 |
Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,891 | 2,516 |
Recurring | Non-U.S. debt securities, Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,600 | 5,836 |
Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,276 | 5,613 |
Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 22,729 | 20,500 |
Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 10,038 | 10,322 |
Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,443 | 2,593 |
Recurring | U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 45 | 42 |
Recurring | Non-U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1 | 3 |
Recurring | U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 77 | 409 |
Recurring | Non-U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 16 | |
Quoted Market Prices in Active Markets (Level 1) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 422 | 525 |
Investment securities available-for-sale | 231 | 3,824 |
Derivative asset | 0 | 0 |
Other | 56 | |
Total | 709 | 4,349 |
Derivative liability | 15 | 0 |
Other | 56 | |
Total liabilities carried at fair value | 71 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Interest-rate contracts(6) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Derivative liability | 15 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 39 | 30 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 383 | 495 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 231 | 3,824 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, sub-prime | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 474 | 499 |
Investment securities available-for-sale | 57,449 | 56,837 |
Derivative asset | 13,366 | 16,544 |
Other | 0 | |
Total | 71,289 | 73,880 |
Derivative liability | 13,774 | 16,676 |
Other | 0 | |
Total liabilities carried at fair value | 13,774 | 16,676 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 13,366 | 16,476 |
Derivative liability | 13,309 | 15,948 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Interest-rate contracts(6) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 68 | |
Derivative liability | 109 | 348 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 356 | 380 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 114 | 174 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 360 | 325 |
Investment securities available-for-sale | 2,780 | 2,469 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 402 | 439 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 11,414 | 13,257 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 5,887 | 5,499 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,556 | 1,351 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, sub-prime | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 243 | 272 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 209 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 7,895 | 7,122 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,962 | 6,535 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,828 | 2,484 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,600 | 5,836 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,002 | 5,365 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 22,392 | 20,220 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 10,000 | 10,283 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,443 | 2,577 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 45 | 42 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1 | 3 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 77 | 409 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 16 | |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Investment securities available-for-sale | 1,345 | 1,337 |
Derivative asset | 5 | 8 |
Other | 0 | |
Total | 1,350 | 1,345 |
Derivative liability | 3 | 8 |
Other | 0 | |
Total liabilities carried at fair value | 3 | 8 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 5 | 8 |
Derivative liability | 3 | 8 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Interest-rate contracts(6) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Derivative liability | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Investment securities available-for-sale | 19 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 97 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, sub-prime | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 951 | 905 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 951 | 1,002 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 63 | 32 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 274 | 248 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 337 | 280 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 38 | 39 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 16 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 0 |
Fair Value - Schedule of Fair49
Fair Value - Schedule of Fair Value Measurements, Assets, Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | $ 1,265 | $ 2,835 | $ 1,345 | $ 2,469 |
Total realized and unrealized gain (losses) recorded in revenue | 3 | 10 | (3) | 20 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (2) | 4 | 0 | (13) |
Purchases | 220 | 72 | 439 | 618 |
Settlements | (119) | (166) | (414) | (257) |
Transfers into Level 3 | 152 | 152 | ||
Transfers out of Level 3 | (169) | (357) | (169) | (439) |
Fair value, end of period | 1,350 | 2,398 | 1,350 | 2,398 |
Change in unrealized gains (losses) related to financial instruments held | 2 | 0 | 2 | 0 |
Derivative instruments, assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 2 | 8 | 5 | |
Total realized and unrealized gain (losses) recorded in revenue | 1 | (6) | 3 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | 0 | |
Purchases | 2 | 7 | 0 | |
Settlements | 0 | (4) | (8) | |
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | 0 | |
Fair value, end of period | 5 | 0 | 5 | 0 |
Change in unrealized gains (losses) related to financial instruments held | 2 | 2 | 0 | |
Foreign exchange contracts | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 2 | 8 | 5 | |
Total realized and unrealized gain (losses) recorded in revenue | 1 | (6) | 3 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | 0 | |
Purchases | 2 | 7 | 0 | |
Settlements | 0 | (4) | (8) | |
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | 0 | |
Fair value, end of period | 5 | 0 | 5 | 0 |
Change in unrealized gains (losses) related to financial instruments held | 2 | 2 | 0 | |
Investment securities available-for-sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 1,263 | 2,835 | 1,337 | 2,464 |
Total realized and unrealized gain (losses) recorded in revenue | 2 | 10 | 3 | 17 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (2) | 4 | 0 | (13) |
Purchases | 218 | 72 | 432 | 618 |
Settlements | (119) | (166) | (410) | (249) |
Transfers into Level 3 | 152 | 152 | ||
Transfers out of Level 3 | (169) | (357) | (169) | (439) |
Fair value, end of period | 1,345 | 2,398 | 1,345 | 2,398 |
US Treasury and federal agencies, mortgage-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 300 | 0 | ||
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | ||
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | ||
Purchases | 0 | 300 | ||
Settlements | 0 | 0 | ||
Transfers out of Level 3 | (275) | (275) | ||
Fair value, end of period | 25 | 25 | ||
Asset-backed securities, student loans | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 99 | 186 | 97 | 189 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 1 | 0 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 3 | 2 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | (99) | 0 | (99) | 0 |
Fair value, end of period | 0 | 190 | 0 | 190 |
Asset-backed securities, other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 771 | 1,813 | 905 | 1,764 |
Total realized and unrealized gain (losses) recorded in revenue | 1 | 9 | 2 | 16 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (1) | (2) | (1) | (13) |
Purchases | 199 | 19 | 354 | 132 |
Settlements | (120) | (129) | (410) | (189) |
Transfers into Level 3 | 101 | 101 | ||
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair value, end of period | 951 | 1,710 | 951 | 1,710 |
Total asset-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 870 | 1,999 | 1,002 | 1,953 |
Total realized and unrealized gain (losses) recorded in revenue | 1 | 10 | 2 | 17 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (1) | 1 | 1 | (13) |
Purchases | 199 | 19 | 354 | 132 |
Settlements | (120) | (129) | (410) | (189) |
Transfers into Level 3 | 101 | 101 | ||
Transfers out of Level 3 | (99) | 0 | (99) | 0 |
Fair value, end of period | 951 | 1,900 | 951 | 1,900 |
Non-U.S. debt securities, asset-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 59 | 127 | 32 | 174 |
Total realized and unrealized gain (losses) recorded in revenue | 1 | 0 | 1 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (1) | 0 | (1) | (1) |
Purchases | 0 | 53 | 31 | 107 |
Settlements | (16) | (16) | (20) | (34) |
Transfers into Level 3 | 51 | 51 | ||
Transfers out of Level 3 | (31) | (53) | (31) | (135) |
Fair value, end of period | 63 | 111 | 63 | 111 |
Non-U.S. debt securities, other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 256 | 295 | 248 | 255 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 2 | 0 | 0 |
Purchases | 0 | 5 | 29 | |
Settlements | 18 | (7) | 21 | 6 |
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | (29) | 0 | (29) |
Fair value, end of period | 274 | 261 | 274 | 261 |
Total non-U.S. debt securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 315 | 422 | 280 | 429 |
Total realized and unrealized gain (losses) recorded in revenue | 1 | 0 | 1 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (1) | 2 | (1) | (1) |
Purchases | 0 | 53 | 36 | 136 |
Settlements | 2 | (23) | 1 | (28) |
Transfers into Level 3 | 51 | 51 | ||
Transfers out of Level 3 | (31) | (82) | (31) | (164) |
Fair value, end of period | 337 | 372 | 337 | 372 |
State and political subdivisions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 39 | 32 | 39 | 33 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 1 | 0 | 1 |
Purchases | 0 | 0 | 0 | 0 |
Settlements | (1) | 0 | (1) | (1) |
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair value, end of period | 38 | 33 | 38 | 33 |
Collateralized mortgage obligations | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 39 | 82 | 16 | 39 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 23 | 50 |
Settlements | 0 | (14) | 0 | (21) |
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | (39) | 0 | (39) | 0 |
Fair value, end of period | 0 | 68 | 0 | 68 |
Other U.S. debt securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 0 | 0 | 10 | |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | 0 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | 0 | |
Purchases | 19 | 19 | 0 | |
Settlements | 0 | 0 | (10) | |
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | 0 | |
Fair value, end of period | $ 19 | $ 0 | $ 19 | $ 0 |
Fair Value - Schedule of Fair50
Fair Value - Schedule of Fair Value Measurements, Liabilities, Using Significant Unobservable Input (Details) - Accrued expenses and other liabilities $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair Value as of December 31, 2015 | $ 5 |
Total Realized and Unrealized (Gains) Losses Recorded in Revenue | 5 |
Settlements | (10) |
Fair Value as of June 30, 2016 | 0 |
Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2016 | 0 |
Foreign exchange contracts | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair Value as of December 31, 2015 | 5 |
Total Realized and Unrealized (Gains) Losses Recorded in Revenue | 5 |
Settlements | (10) |
Fair Value as of June 30, 2016 | 0 |
Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2016 | 0 |
Total derivative instruments | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair Value as of December 31, 2015 | 5 |
Total Realized and Unrealized (Gains) Losses Recorded in Revenue | 5 |
Settlements | (10) |
Fair Value as of June 30, 2016 | 0 |
Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2016 | $ 0 |
Fair Value - Fair Value Inputs,
Fair Value - Fair Value Inputs, Assets and Liabilities, Quantitative Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Investment securities available-for-sale | $ 59,025 | $ 61,998 |
Asset-backed securities, other | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Investment securities available-for-sale | 1,160 | 905 |
State and political subdivisions | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Investment securities available-for-sale | $ 10,038 | $ 10,322 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Discounted cash flows | Asset-backed securities, other | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Credit spread | 0.00% | 0.30% |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Discounted cash flows | State and political subdivisions | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Credit spread | 1.90% | 1.80% |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Option model | Derivative instruments, liabilities | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Volatility | 6.40% | 14.40% |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Option model | Derivative instruments, assets | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Volatility | 7.10% | 14.40% |
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Total | $ 43 | $ 48 |
Total | 3 | 8 |
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, liabilities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative instruments, foreign exchange contracts | 3 | 8 |
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, assets | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative instruments, foreign exchange contracts | 5 | 8 |
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Asset-backed securities, other | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Investment securities available-for-sale | 0 | 1 |
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | State and political subdivisions | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Investment securities available-for-sale | $ 38 | $ 39 |
Fair Value - Carrying Value and
Fair Value - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Financial Assets: | ||||
Cash and due from banks | $ 3,156 | $ 1,314 | $ 4,673 | $ 1,207 |
Interest-bearing deposits with banks | 63,617 | 70,935 | ||
Securities purchased under resale agreements | 3,172 | 1,956 | ||
Investment securities held-to-maturity | 36,169 | 34,994 | ||
Financial Liabilities: | ||||
Non-interest-bearing | 50,957 | 59,397 | ||
Interest-bearing—U.S. | 24,438 | 30,911 | ||
Interest-bearing—non-U.S. | 106,021 | 96,855 | ||
Securities sold under repurchase agreements | 3,856 | 4,400 | ||
Other short-term borrowings | 1,465 | 1,585 | ||
Reported Amount | ||||
Financial Assets: | ||||
Cash and due from banks | 3,156 | 1,314 | ||
Interest-bearing deposits with banks | 63,617 | 70,935 | ||
Securities purchased under resale agreements | 3,172 | 1,956 | ||
Investment securities held-to-maturity | 36,230 | 35,169 | ||
Net loans (excluding leases) | 23,547 | 18,862 | ||
Financial Liabilities: | ||||
Non-interest-bearing | 50,957 | 59,397 | ||
Interest-bearing—U.S. | 24,438 | 30,911 | ||
Interest-bearing—non-U.S. | 106,021 | 96,855 | ||
Securities sold under repurchase agreements | 3,856 | 4,400 | ||
Other short-term borrowings | 1,465 | 1,585 | ||
Long-term debt | 11,737 | 11,430 | ||
Estimated Fair Value | ||||
Financial Assets: | ||||
Cash and due from banks | 3,156 | 1,314 | ||
Interest-bearing deposits with banks | 63,617 | 70,935 | ||
Securities purchased under resale agreements | 3,172 | 1,956 | ||
Investment securities held-to-maturity | 36,169 | 34,994 | ||
Net loans (excluding leases) | 23,545 | 18,877 | ||
Financial Liabilities: | ||||
Non-interest-bearing | 50,957 | 59,397 | ||
Interest-bearing—U.S. | 24,438 | 30,911 | ||
Interest-bearing—non-U.S. | 106,021 | 96,855 | ||
Securities sold under repurchase agreements | 3,856 | 4,400 | ||
Other short-term borrowings | 1,465 | 1,585 | ||
Long-term debt | 12,022 | 11,618 | ||
Estimated Fair Value | Quoted Market Prices in Active Markets (Level 1) | ||||
Financial Assets: | ||||
Cash and due from banks | 3,156 | 1,314 | ||
Interest-bearing deposits with banks | 0 | 0 | ||
Securities purchased under resale agreements | 0 | 0 | ||
Investment securities held-to-maturity | 17,392 | 17,400 | ||
Net loans (excluding leases) | 0 | 0 | ||
Financial Liabilities: | ||||
Non-interest-bearing | 0 | 0 | ||
Interest-bearing—U.S. | 0 | 0 | ||
Interest-bearing—non-U.S. | 0 | 0 | ||
Securities sold under repurchase agreements | 0 | 0 | ||
Other short-term borrowings | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Estimated Fair Value | Pricing Methods with Significant Observable Market Inputs (Level 2) | ||||
Financial Assets: | ||||
Cash and due from banks | 0 | 0 | ||
Interest-bearing deposits with banks | 63,617 | 70,935 | ||
Securities purchased under resale agreements | 3,172 | 1,956 | ||
Investment securities held-to-maturity | 18,651 | 17,439 | ||
Net loans (excluding leases) | 23,486 | 18,781 | ||
Financial Liabilities: | ||||
Non-interest-bearing | 50,957 | 59,397 | ||
Interest-bearing—U.S. | 24,438 | 30,911 | ||
Interest-bearing—non-U.S. | 106,021 | 96,855 | ||
Securities sold under repurchase agreements | 3,856 | 4,400 | ||
Other short-term borrowings | 1,465 | 1,585 | ||
Long-term debt | 11,710 | 11,282 | ||
Estimated Fair Value | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | ||||
Financial Assets: | ||||
Cash and due from banks | 0 | 0 | ||
Interest-bearing deposits with banks | 0 | 0 | ||
Securities purchased under resale agreements | 0 | 0 | ||
Investment securities held-to-maturity | 126 | 155 | ||
Net loans (excluding leases) | 59 | 96 | ||
Financial Liabilities: | ||||
Non-interest-bearing | 0 | 0 | ||
Interest-bearing—U.S. | 0 | 0 | ||
Interest-bearing—non-U.S. | 0 | 0 | ||
Securities sold under repurchase agreements | 0 | 0 | ||
Other short-term borrowings | 0 | 0 | ||
Long-term debt | $ 312 | $ 336 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)security | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Pledged securities not separately reported | $ 52,000 | $ 52,000 | $ 46,000 | ||
Net impairment losses | $ 1 | $ 1 | $ 1 | ||
MBS and U.S. Treasury Securities | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Securities sold | 2,700 | ||||
Loss on sale | 40 | ||||
U.S. Non-Agency Commercial Mortgage Backed Securities [Member] | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Gross pre-tax unrealized losses | $ 527 | ||||
Number of securities in loss position | security | 1,309 |
Investment Securities - Schedul
Investment Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | $ 58,714 | $ 62,056 |
Available for sale, gross unrealized gains | 571 | 427 |
Available for sale, gross unrealized losses | 260 | 485 |
Investment securities available-for-sale | 59,025 | 61,998 |
Held to maturity, amortized cost | 36,230 | 35,169 |
Held to maturity, gross unrealized gains | 206 | 160 |
Held to maturity, gross unrealized losses | 267 | 335 |
Investment securities held-to-maturity | 36,169 | 34,994 |
US Treasury and federal agencies, direct obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 632 | 4,265 |
Available for sale, gross unrealized gains | 3 | 7 |
Available for sale, gross unrealized losses | 2 | 9 |
Investment securities available-for-sale | 633 | 4,263 |
Held to maturity, amortized cost | 17,479 | 17,527 |
Held to maturity, gross unrealized gains | 27 | 17 |
Held to maturity, gross unrealized losses | 35 | 58 |
Investment securities held-to-maturity | 17,471 | 17,486 |
US Treasury and federal agencies, mortgage-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 11,445 | 13,340 |
Available for sale, gross unrealized gains | 61 | 76 |
Available for sale, gross unrealized losses | 92 | 159 |
Investment securities available-for-sale | 11,414 | 13,257 |
Held to maturity, amortized cost | 11,937 | 10,334 |
Held to maturity, gross unrealized gains | 35 | 20 |
Held to maturity, gross unrealized losses | 200 | 221 |
Investment securities held-to-maturity | 11,772 | 10,133 |
Asset-backed securities, student loans | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 5,871 | 5,659 |
Available for sale, gross unrealized gains | 36 | 12 |
Available for sale, gross unrealized losses | 20 | 75 |
Investment securities available-for-sale | 5,887 | 5,596 |
Held to maturity, amortized cost | 2,738 | 2,883 |
Held to maturity, gross unrealized gains | 17 | 5 |
Held to maturity, gross unrealized losses | 15 | 30 |
Investment securities held-to-maturity | 2,740 | 2,858 |
Asset-backed securities, credit cards | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,575 | 1,377 |
Available for sale, gross unrealized gains | 3 | 0 |
Available for sale, gross unrealized losses | 22 | 26 |
Investment securities available-for-sale | 1,556 | 1,351 |
Held to maturity, amortized cost | 858 | 897 |
Held to maturity, gross unrealized gains | 3 | 2 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 861 | 899 |
Asset-backed securities, sub-prime | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 249 | 289 |
Available for sale, gross unrealized gains | 2 | 1 |
Available for sale, gross unrealized losses | 8 | 18 |
Investment securities available-for-sale | 243 | 272 |
Asset-backed securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,154 | 895 |
Available for sale, gross unrealized gains | 6 | 10 |
Available for sale, gross unrealized losses | 0 | 0 |
Investment securities available-for-sale | 1,160 | 905 |
Held to maturity, amortized cost | 5 | 35 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 5 | 35 |
Total asset-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 8,849 | 8,220 |
Available for sale, gross unrealized gains | 47 | 23 |
Available for sale, gross unrealized losses | 50 | 119 |
Investment securities available-for-sale | 8,846 | 8,124 |
Held to maturity, amortized cost | 3,601 | 3,815 |
Held to maturity, gross unrealized gains | 20 | 7 |
Held to maturity, gross unrealized losses | 15 | 30 |
Investment securities held-to-maturity | 3,606 | 3,792 |
Non-U.S. debt securities, mortgage-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 6,925 | 6,506 |
Available for sale, gross unrealized gains | 40 | 35 |
Available for sale, gross unrealized losses | 3 | 6 |
Investment securities available-for-sale | 6,962 | 6,535 |
Held to maturity, amortized cost | 1,084 | 1,150 |
Held to maturity, gross unrealized gains | 80 | 70 |
Held to maturity, gross unrealized losses | 10 | 15 |
Investment securities held-to-maturity | 1,154 | 1,205 |
Non-U.S. debt securities, asset-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 2,884 | 2,513 |
Available for sale, gross unrealized gains | 7 | 4 |
Available for sale, gross unrealized losses | 0 | 1 |
Investment securities available-for-sale | 2,891 | 2,516 |
Held to maturity, amortized cost | 365 | 531 |
Held to maturity, gross unrealized gains | 1 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 366 | 531 |
Non-U.S. debt securities, Government securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 6,614 | 5,834 |
Available for sale, gross unrealized gains | 6 | 8 |
Available for sale, gross unrealized losses | 20 | 6 |
Investment securities available-for-sale | 6,600 | 5,836 |
Held to maturity, amortized cost | 357 | 286 |
Held to maturity, gross unrealized gains | 2 | 3 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 359 | 289 |
Non-U.S. debt securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 6,247 | 5,587 |
Available for sale, gross unrealized gains | 34 | 31 |
Available for sale, gross unrealized losses | 5 | 5 |
Investment securities available-for-sale | 6,276 | 5,613 |
Held to maturity, amortized cost | 122 | 113 |
Held to maturity, gross unrealized gains | 0 | 1 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 122 | 114 |
Total non-U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 22,670 | 20,440 |
Available for sale, gross unrealized gains | 87 | 78 |
Available for sale, gross unrealized losses | 28 | 18 |
Investment securities available-for-sale | 22,729 | 20,500 |
Held to maturity, amortized cost | 1,928 | 2,080 |
Held to maturity, gross unrealized gains | 83 | 74 |
Held to maturity, gross unrealized losses | 10 | 15 |
Investment securities held-to-maturity | 2,001 | 2,139 |
State and political subdivisions | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 9,747 | 10,233 |
Available for sale, gross unrealized gains | 328 | 201 |
Available for sale, gross unrealized losses | 37 | 112 |
Investment securities available-for-sale | 10,038 | 10,322 |
Collateralized mortgage obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 2,449 | 2,610 |
Available for sale, gross unrealized gains | 21 | 18 |
Available for sale, gross unrealized losses | 27 | 35 |
Investment securities available-for-sale | 2,443 | 2,593 |
Held to maturity, amortized cost | 1,285 | 1,413 |
Held to maturity, gross unrealized gains | 41 | 42 |
Held to maturity, gross unrealized losses | 7 | 11 |
Investment securities held-to-maturity | 1,319 | 1,444 |
Other U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 2,804 | 2,481 |
Available for sale, gross unrealized gains | 17 | 18 |
Available for sale, gross unrealized losses | 22 | 30 |
Investment securities available-for-sale | 2,799 | 2,469 |
U.S. equity securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 40 | 39 |
Available for sale, gross unrealized gains | 7 | 6 |
Available for sale, gross unrealized losses | 2 | 3 |
Investment securities available-for-sale | 45 | 42 |
Non-U.S. equity securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1 | 3 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | 0 | 0 |
Investment securities available-for-sale | 1 | 3 |
U.S. money-market mutual funds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 77 | 409 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | 0 | 0 |
Investment securities available-for-sale | 77 | 409 |
Non-U.S. money-market mutual funds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 0 | 16 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | 0 | 0 |
Investment securities available-for-sale | $ 0 | 16 |
Federal family education loan program | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Federal government credit support guarantee, percentage minimum | 97.00% | |
Collateralized loan obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities available-for-sale | $ 1,160 | 905 |
Non-US debt securities, covered bonds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities available-for-sale | 3,968 | 3,769 |
Non-U.S. debt securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities available-for-sale | $ 1,264 | $ 988 |
Investment Securities - Sched55
Investment Securities - Schedule of Gross Pre-Tax Unrealized Losses on Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | $ 15,494 | $ 16,928 |
Available for sale, gross unrealized losses less than 12 months | 185 | 308 |
Available for sale, fair value 12 months or longer | 5,071 | 7,800 |
Available for sale, gross unrealized losses 12 months or longer | 75 | 177 |
Available for sale, fair value total | 20,565 | 24,728 |
Available for sale, gross unrealized losses total | 260 | 485 |
Held to maturity, fair value less than 12 months | 16,982 | 17,284 |
Held-to-maturity, gross, less than 12 months | 244 | 293 |
Held to maturity, fair value 12 months or longer | 1,279 | 1,899 |
Held to maturity, gross unrealized losses 12 months or longer | 23 | 42 |
Held to maturity, fair value total | 18,261 | 19,183 |
Held to maturity, gross unrealized losses total | 267 | 335 |
US Treasury and federal agencies, direct obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 154 | 651 |
Available for sale, gross unrealized losses less than 12 months | 1 | 8 |
Available for sale, fair value 12 months or longer | 164 | 180 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 1 |
Available for sale, fair value total | 318 | 831 |
Available for sale, gross unrealized losses total | 2 | 9 |
Held to maturity, fair value less than 12 months | 9,025 | 8,891 |
Held-to-maturity, gross, less than 12 months | 34 | 57 |
Held to maturity, fair value 12 months or longer | 79 | 86 |
Held to maturity, gross unrealized losses 12 months or longer | 1 | 1 |
Held to maturity, fair value total | 9,104 | 8,977 |
Held to maturity, gross unrealized losses total | 35 | 58 |
US Treasury and federal agencies, mortgage-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 5,877 | 7,072 |
Available for sale, gross unrealized losses less than 12 months | 83 | 131 |
Available for sale, fair value 12 months or longer | 536 | 1,114 |
Available for sale, gross unrealized losses 12 months or longer | 9 | 28 |
Available for sale, fair value total | 6,413 | 8,186 |
Available for sale, gross unrealized losses total | 92 | 159 |
Held to maturity, fair value less than 12 months | 6,901 | 6,838 |
Held-to-maturity, gross, less than 12 months | 200 | 221 |
Held to maturity, fair value 12 months or longer | 0 | 0 |
Held to maturity, gross unrealized losses 12 months or longer | 0 | 0 |
Held to maturity, fair value total | 6,901 | 6,838 |
Held to maturity, gross unrealized losses total | 200 | 221 |
Asset-backed securities, student loans | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 233 | 54 |
Available for sale, gross unrealized losses less than 12 months | 1 | 0 |
Available for sale, fair value 12 months or longer | 2,449 | 3,745 |
Available for sale, gross unrealized losses 12 months or longer | 19 | 75 |
Available for sale, fair value total | 2,682 | 3,799 |
Available for sale, gross unrealized losses total | 20 | 75 |
Held to maturity, fair value less than 12 months | 619 | 705 |
Held-to-maturity, gross, less than 12 months | 8 | 9 |
Held to maturity, fair value 12 months or longer | 728 | 1,235 |
Held to maturity, gross unrealized losses 12 months or longer | 7 | 21 |
Held to maturity, fair value total | 1,347 | 1,940 |
Held to maturity, gross unrealized losses total | 15 | 30 |
Asset-backed securities, credit cards | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 0 | 795 |
Available for sale, gross unrealized losses less than 12 months | 0 | 1 |
Available for sale, fair value 12 months or longer | 498 | 494 |
Available for sale, gross unrealized losses 12 months or longer | 22 | 25 |
Available for sale, fair value total | 498 | 1,289 |
Available for sale, gross unrealized losses total | 22 | 26 |
Held to maturity, fair value less than 12 months | 33 | |
Held-to-maturity, gross, less than 12 months | 0 | |
Held to maturity, fair value 12 months or longer | 0 | |
Held to maturity, gross unrealized losses 12 months or longer | 0 | |
Held to maturity, fair value total | 33 | |
Held to maturity, gross unrealized losses total | 0 | |
Asset-backed securities, sub-prime | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 0 | 1 |
Available for sale, gross unrealized losses less than 12 months | 0 | 0 |
Available for sale, fair value 12 months or longer | 216 | 252 |
Available for sale, gross unrealized losses 12 months or longer | 8 | 18 |
Available for sale, fair value total | 216 | 253 |
Available for sale, gross unrealized losses total | 8 | 18 |
Asset-backed securities, other | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 75 | |
Available for sale, gross unrealized losses less than 12 months | 0 | |
Available for sale, fair value 12 months or longer | 0 | |
Available for sale, gross unrealized losses 12 months or longer | 0 | |
Available for sale, fair value total | 75 | |
Available for sale, gross unrealized losses total | 0 | |
Held to maturity, fair value less than 12 months | 18 | |
Held-to-maturity, gross, less than 12 months | 0 | |
Held to maturity, fair value 12 months or longer | 9 | |
Held to maturity, gross unrealized losses 12 months or longer | 0 | |
Held to maturity, fair value total | 27 | |
Held to maturity, gross unrealized losses total | 0 | |
Asset-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 233 | 925 |
Available for sale, gross unrealized losses less than 12 months | 1 | 1 |
Available for sale, fair value 12 months or longer | 3,163 | 4,491 |
Available for sale, gross unrealized losses 12 months or longer | 49 | 118 |
Available for sale, fair value total | 3,396 | 5,416 |
Available for sale, gross unrealized losses total | 50 | 119 |
Held to maturity, fair value less than 12 months | 619 | 756 |
Held-to-maturity, gross, less than 12 months | 8 | 9 |
Held to maturity, fair value 12 months or longer | 728 | 1,244 |
Held to maturity, gross unrealized losses 12 months or longer | 7 | 21 |
Held to maturity, fair value total | 1,347 | 2,000 |
Held to maturity, gross unrealized losses total | 15 | 30 |
Non-U.S. debt securities, mortgage-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 342 | 442 |
Available for sale, gross unrealized losses less than 12 months | 1 | 1 |
Available for sale, fair value 12 months or longer | 648 | 893 |
Available for sale, gross unrealized losses 12 months or longer | 2 | 5 |
Available for sale, fair value total | 990 | 1,335 |
Available for sale, gross unrealized losses total | 3 | 6 |
Held to maturity, fair value less than 12 months | 0 | 54 |
Held-to-maturity, gross, less than 12 months | 0 | 2 |
Held to maturity, fair value 12 months or longer | 290 | 330 |
Held to maturity, gross unrealized losses 12 months or longer | 10 | 13 |
Held to maturity, fair value total | 290 | 384 |
Held to maturity, gross unrealized losses total | 10 | 15 |
Non-U.S. debt securities, asset-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 253 | |
Available for sale, gross unrealized losses less than 12 months | 0 | |
Available for sale, fair value 12 months or longer | 276 | |
Available for sale, gross unrealized losses 12 months or longer | 1 | |
Available for sale, fair value total | 529 | |
Available for sale, gross unrealized losses total | 1 | |
Held to maturity, fair value less than 12 months | 28 | |
Held-to-maturity, gross, less than 12 months | 0 | |
Held to maturity, fair value 12 months or longer | 35 | |
Held to maturity, gross unrealized losses 12 months or longer | 0 | |
Held to maturity, fair value total | 63 | |
Held to maturity, gross unrealized losses total | 0 | |
Government securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 4,471 | 1,314 |
Available for sale, gross unrealized losses less than 12 months | 20 | 6 |
Available for sale, fair value 12 months or longer | 0 | 0 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 0 |
Available for sale, fair value total | 4,471 | 1,314 |
Available for sale, gross unrealized losses total | 20 | 6 |
Held to maturity, fair value less than 12 months | 180 | |
Held-to-maturity, gross, less than 12 months | 0 | |
Held to maturity, fair value 12 months or longer | 0 | |
Held to maturity, gross unrealized losses 12 months or longer | 0 | |
Held to maturity, fair value total | 180 | |
Held to maturity, gross unrealized losses total | 0 | |
Non-U.S. debt securities, other | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 728 | 670 |
Available for sale, gross unrealized losses less than 12 months | 5 | 4 |
Available for sale, fair value 12 months or longer | 0 | 218 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 1 |
Available for sale, fair value total | 728 | 888 |
Available for sale, gross unrealized losses total | 5 | 5 |
Total non-U.S. debt securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 5,541 | 2,679 |
Available for sale, gross unrealized losses less than 12 months | 26 | 11 |
Available for sale, fair value 12 months or longer | 648 | 1,387 |
Available for sale, gross unrealized losses 12 months or longer | 2 | 7 |
Available for sale, fair value total | 6,189 | 4,066 |
Available for sale, gross unrealized losses total | 28 | 18 |
Held to maturity, fair value less than 12 months | 0 | 262 |
Held-to-maturity, gross, less than 12 months | 0 | 2 |
Held to maturity, fair value 12 months or longer | 290 | 365 |
Held to maturity, gross unrealized losses 12 months or longer | 10 | 13 |
Held to maturity, fair value total | 290 | 627 |
Held to maturity, gross unrealized losses total | 10 | 15 |
State and political subdivisions | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,636 | 3,390 |
Available for sale, gross unrealized losses less than 12 months | 33 | 102 |
Available for sale, fair value 12 months or longer | 224 | 304 |
Available for sale, gross unrealized losses 12 months or longer | 4 | 10 |
Available for sale, fair value total | 1,860 | 3,694 |
Available for sale, gross unrealized losses total | 37 | 112 |
Collateralized mortgage obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 906 | 1,259 |
Available for sale, gross unrealized losses less than 12 months | 23 | 31 |
Available for sale, fair value 12 months or longer | 171 | 162 |
Available for sale, gross unrealized losses 12 months or longer | 4 | 4 |
Available for sale, fair value total | 1,077 | 1,421 |
Available for sale, gross unrealized losses total | 27 | 35 |
Held to maturity, fair value less than 12 months | 437 | 537 |
Held-to-maturity, gross, less than 12 months | 2 | 4 |
Held to maturity, fair value 12 months or longer | 182 | 204 |
Held to maturity, gross unrealized losses 12 months or longer | 5 | 7 |
Held to maturity, fair value total | 619 | 741 |
Held to maturity, gross unrealized losses total | 7 | 11 |
Other U.S. debt securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,147 | 944 |
Available for sale, gross unrealized losses less than 12 months | 18 | 24 |
Available for sale, fair value 12 months or longer | 159 | 157 |
Available for sale, gross unrealized losses 12 months or longer | 4 | 6 |
Available for sale, fair value total | 1,306 | 1,101 |
Available for sale, gross unrealized losses total | 22 | 30 |
U.S. equity securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 0 | 8 |
Available for sale, gross unrealized losses less than 12 months | 0 | 0 |
Available for sale, fair value 12 months or longer | 6 | 5 |
Available for sale, gross unrealized losses 12 months or longer | 2 | 3 |
Available for sale, fair value total | 6 | 13 |
Available for sale, gross unrealized losses total | $ 2 | $ 3 |
Investment Securities - Sched56
Investment Securities - Schedule of Contractual Maturities of Debt Securities (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | $ 9,001 | |
Available for sale, 1 to 5 Years | 20,551 | |
Available for sale, 6 to 10 Years | 16,233 | |
Available for sale, over 10 Years | 13,117 | |
Available-for-sale, fair value | 58,902 | |
Held to maturity, under 1 Year | 2,305 | |
Held to maturity, 1 to 5 Years | 17,622 | |
Held to maturity, 6 to 10 Years | 2,625 | |
Held to maturity, over 10 Years | 13,678 | |
Held to maturity, amortized cost | 36,230 | $ 35,169 |
US Treasury and federal agencies, direct obligations | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 231 | |
Available for sale, 1 to 5 Years | 8 | |
Available for sale, 6 to 10 Years | 52 | |
Available for sale, over 10 Years | 342 | |
Available-for-sale, fair value | 633 | |
Held to maturity, under 1 Year | 1,199 | |
Held to maturity, 1 to 5 Years | 15,800 | |
Held to maturity, 6 to 10 Years | 414 | |
Held to maturity, over 10 Years | 66 | |
Held to maturity, amortized cost | 17,479 | 17,527 |
US Treasury and federal agencies, mortgage-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 254 | |
Available for sale, 1 to 5 Years | 1,463 | |
Available for sale, 6 to 10 Years | 3,241 | |
Available for sale, over 10 Years | 6,456 | |
Available-for-sale, fair value | 11,414 | |
Held to maturity, under 1 Year | 0 | |
Held to maturity, 1 to 5 Years | 182 | |
Held to maturity, 6 to 10 Years | 1,386 | |
Held to maturity, over 10 Years | 10,369 | |
Held to maturity, amortized cost | 11,937 | 10,334 |
Asset-backed securities, student loans | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 915 | |
Available for sale, 1 to 5 Years | 2,415 | |
Available for sale, 6 to 10 Years | 894 | |
Available for sale, over 10 Years | 1,663 | |
Available-for-sale, fair value | 5,887 | |
Held to maturity, under 1 Year | 307 | |
Held to maturity, 1 to 5 Years | 246 | |
Held to maturity, 6 to 10 Years | 291 | |
Held to maturity, over 10 Years | 1,894 | |
Held to maturity, amortized cost | 2,738 | 2,883 |
Asset-backed securities, credit cards | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 0 | |
Available for sale, 1 to 5 Years | 1,006 | |
Available for sale, 6 to 10 Years | 550 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 1,556 | |
Held to maturity, under 1 Year | 124 | |
Held to maturity, 1 to 5 Years | 734 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 858 | 897 |
Asset-backed securities, sub-prime | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 0 | |
Available for sale, 1 to 5 Years | 2 | |
Available for sale, 6 to 10 Years | 2 | |
Available for sale, over 10 Years | 239 | |
Available-for-sale, fair value | 243 | |
Asset-backed securities, other | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 0 | |
Available for sale, 1 to 5 Years | 122 | |
Available for sale, 6 to 10 Years | 1,038 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 1,160 | |
Held to maturity, under 1 Year | 0 | |
Held to maturity, 1 to 5 Years | 4 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 1 | |
Held to maturity, amortized cost | 5 | 35 |
Total asset-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 915 | |
Available for sale, 1 to 5 Years | 3,545 | |
Available for sale, 6 to 10 Years | 2,484 | |
Available for sale, over 10 Years | 1,902 | |
Available-for-sale, fair value | 8,846 | |
Held to maturity, under 1 Year | 431 | |
Held to maturity, 1 to 5 Years | 984 | |
Held to maturity, 6 to 10 Years | 291 | |
Held to maturity, over 10 Years | 1,895 | |
Held to maturity, amortized cost | 3,601 | 3,815 |
Non-U.S. debt securities, mortgage-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 1,152 | |
Available for sale, 1 to 5 Years | 3,909 | |
Available for sale, 6 to 10 Years | 964 | |
Available for sale, over 10 Years | 937 | |
Available-for-sale, fair value | 6,962 | |
Held to maturity, under 1 Year | 223 | |
Held to maturity, 1 to 5 Years | 242 | |
Held to maturity, 6 to 10 Years | 51 | |
Held to maturity, over 10 Years | 568 | |
Held to maturity, amortized cost | 1,084 | 1,150 |
Non-U.S. debt securities, asset-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 370 | |
Available for sale, 1 to 5 Years | 2,261 | |
Available for sale, 6 to 10 Years | 260 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 2,891 | |
Held to maturity, under 1 Year | 127 | |
Held to maturity, 1 to 5 Years | 238 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 365 | 531 |
Government securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 3,144 | |
Available for sale, 1 to 5 Years | 2,255 | |
Available for sale, 6 to 10 Years | 1,201 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 6,600 | |
Held to maturity, under 1 Year | 242 | |
Held to maturity, 1 to 5 Years | 115 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 357 | 286 |
Non-U.S. debt securities, other | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 2,030 | |
Available for sale, 1 to 5 Years | 3,535 | |
Available for sale, 6 to 10 Years | 711 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 6,276 | |
Held to maturity, under 1 Year | 76 | |
Held to maturity, 1 to 5 Years | 46 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 122 | 113 |
Total non-U.S. debt securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 6,696 | |
Available for sale, 1 to 5 Years | 11,960 | |
Available for sale, 6 to 10 Years | 3,136 | |
Available for sale, over 10 Years | 937 | |
Available-for-sale, fair value | 22,729 | |
Held to maturity, under 1 Year | 668 | |
Held to maturity, 1 to 5 Years | 641 | |
Held to maturity, 6 to 10 Years | 51 | |
Held to maturity, over 10 Years | 568 | |
Held to maturity, amortized cost | 1,928 | 2,080 |
State and political subdivisions | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 398 | |
Available for sale, 1 to 5 Years | 2,493 | |
Available for sale, 6 to 10 Years | 5,181 | |
Available for sale, over 10 Years | 1,966 | |
Available-for-sale, fair value | 10,038 | |
Collateralized mortgage obligations | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 0 | |
Available for sale, 1 to 5 Years | 158 | |
Available for sale, 6 to 10 Years | 771 | |
Available for sale, over 10 Years | 1,514 | |
Available-for-sale, fair value | 2,443 | |
Held to maturity, under 1 Year | 7 | |
Held to maturity, 1 to 5 Years | 15 | |
Held to maturity, 6 to 10 Years | 483 | |
Held to maturity, over 10 Years | 780 | |
Held to maturity, amortized cost | 1,285 | $ 1,413 |
Other U.S. debt securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 507 | |
Available for sale, 1 to 5 Years | 924 | |
Available for sale, 6 to 10 Years | 1,368 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | $ 2,799 |
Investment Securities - Sched57
Investment Securities - Schedule of Credit-Related Loss Activity Recognized In Earnings (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance, beginning of period | $ 66 | $ 92 |
Losses for which OTTI was not previously recognized | 0 | 1 |
Previously recognized losses related to securities sold or matured | (2) | (2) |
Balance, end of period | $ 64 | $ 91 |
Loans and Leases - Narrative (D
Loans and Leases - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases pledged as collateral | $ | $ 2,100,000,000 | $ 1,500,000,000 |
Allowance for loan and lease losses | $ | $ 54,000,000 | $ 53,000,000 |
Loans modified in troubled debt restructurings | loan | 0 | 0 |
Number of loans on non-accrual status | loan | 0 | |
Loans more than 90 days past due | loan | 0 | 0 |
Commercial and Financial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of loans on non-accrual status | loan | 1 | |
Commercial and Financial | Senior Secured Bank Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of impaired loans and leases | loan | 0 | 1 |
Recorded Investment | $ | $ 15,000,000 | |
Unpaid Principal Balance | $ | 15,000,000 | |
Interest Income Recognized | $ | 0 | |
Allowance for loan and lease losses | $ | $ 200,000 | $ 195,000 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of loans on non-accrual status | loan | 0 | 0 |
Loans and Leases - Net Loans (D
Loans and Leases - Net Loans (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 24,361 | $ 19,757 |
Allowance for loan and lease losses | (54) | (53) |
Loans and leases, net of allowance | 24,307 | 19,704 |
Domestic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans to investment funds | 13,795 | 11,734 |
Senior secured bank loans | 3,464 | 3,256 |
Loans to municipalities | 1,909 | 1,352 |
Other | 59 | 70 |
Commercial real estate | 0 | 27 |
Lease financing | 297 | 338 |
Total loans and leases | 19,524 | 16,777 |
Non-U.S. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans to investment funds | 4,051 | 2,224 |
Senior secured bank loans | 323 | 252 |
Lease financing | 463 | 504 |
Total loans and leases | $ 4,837 | $ 2,980 |
Loans and Leases - Recorded Inv
Loans and Leases - Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 24,361 | $ 19,757 |
Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 23,601 | 18,888 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 27 |
Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 760 | 842 |
Investment grade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 19,944 | 15,758 |
Investment grade | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 19,184 | 14,889 |
Investment grade | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 27 |
Investment grade | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 760 | 842 |
Speculative | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 4,417 | 3,984 |
Speculative | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 4,417 | 3,984 |
Speculative | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 0 |
Speculative | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 0 | 0 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 15 | |
Substandard | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 15 | |
Substandard | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | |
Substandard | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 0 |
Loans and Leases - Schedule of
Loans and Leases - Schedule of Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 24,361,000 | $ 19,757,000 |
Loans and leases, allowance for losses | 54,000 | 53,000 |
Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 23,601,000 | 18,888,000 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 27,000 |
Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 760,000 | 842,000 |
Individually evaluated for impairment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 15,000 |
Individually evaluated for impairment | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 15,000 |
Individually evaluated for impairment | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 0 |
Individually evaluated for impairment | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 0 |
Collectively evaluated for impairment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 24,361,000 | 19,742,000 |
Collectively evaluated for impairment | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 23,601,000 | 18,873,000 |
Collectively evaluated for impairment | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 27,000 |
Collectively evaluated for impairment | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 760,000 | 842,000 |
Senior Secured Bank Loans | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases, allowance for losses | $ 200 | $ 195 |
Loans and Leases - Schedule o62
Loans and Leases - Schedule of Activity In The Allowance For Loan Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 51 | $ 47 | $ 53 | $ 46 |
Provision for loan and lease losses | 3 | 4 | 1 | 8 |
Charge-offs | 0 | 0 | 0 | (3) |
Ending balance | $ 54 | $ 51 | $ 54 | $ 51 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 5,814 | $ 5,671 |
Acquisitions | 17 | 236 |
Divestitures and other reductions | (3) | (11) |
Foreign currency translation | 117 | (82) |
Ending balance | 5,945 | 5,814 |
Investment Servicing | ||
Goodwill [Roll Forward] | ||
Beginning balance | 5,550 | 5,641 |
Acquisitions | 17 | 0 |
Divestitures and other reductions | (3) | (11) |
Foreign currency translation | 114 | (80) |
Ending balance | 5,678 | 5,550 |
Investment Management | ||
Goodwill [Roll Forward] | ||
Beginning balance | 264 | 30 |
Acquisitions | 0 | 236 |
Divestitures and other reductions | 0 | 0 |
Foreign currency translation | 3 | (2) |
Ending balance | $ 267 | $ 264 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Finite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance | $ 1,750 | $ 1,768 | $ 1,768 | ||
Acquisitions | 11 | 217 | |||
Divestitures | (6) | (8) | |||
Amortization | $ (54) | $ (49) | (106) | (98) | (207) |
Foreign currency translation and other, net | 44 | (20) | |||
Ending balance | 1,693 | 1,693 | 1,750 | ||
Investment Servicing | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance | 1,539 | 1,753 | 1,753 | ||
Acquisitions | 11 | 0 | |||
Divestitures | (6) | (8) | |||
Amortization | (91) | (186) | |||
Foreign currency translation and other, net | 44 | (20) | |||
Ending balance | 1,497 | 1,497 | 1,539 | ||
Investment Management | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance | 211 | $ 15 | 15 | ||
Acquisitions | 0 | 217 | |||
Divestitures | 0 | 0 | |||
Amortization | (15) | (21) | |||
Foreign currency translation and other, net | 0 | 0 | |||
Ending balance | $ 196 | $ 196 | $ 211 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets - Gross Carrying Amount, Accumulated Amortization And Net Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 3,429 | $ 3,413 | |
Accumulated Amortization | (1,736) | (1,663) | |
Net Carrying Amount | 1,693 | 1,750 | $ 1,768 |
Client relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 2,621 | 2,620 | |
Accumulated Amortization | (1,352) | (1,306) | |
Net Carrying Amount | 1,269 | 1,314 | |
Core deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 676 | 661 | |
Accumulated Amortization | (299) | (277) | |
Net Carrying Amount | 377 | 384 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 132 | 132 | |
Accumulated Amortization | (85) | (80) | |
Net Carrying Amount | $ 47 | $ 52 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||
Receivable - securities lending | $ 22,531 | $ 21,204 |
Derivative instruments, net | 4,128 | 7,321 |
Bank-owned life insurance | 3,197 | 3,158 |
Investments in joint ventures and other unconsolidated entities | 2,115 | 2,363 |
Collateral, net | 726 | 2,236 |
Accounts receivable | 719 | 886 |
Prepaid expenses | 475 | 333 |
Receivable for securities settlement | 420 | 40 |
Income taxes receivable | 221 | 106 |
Deferred tax assets, net of valuation allowance | 211 | 210 |
Deposits with clearing organizations | 117 | 132 |
Other | 431 | 339 |
Total | $ 35,291 | $ 38,328 |
Derivative Financial Instrume67
Derivative Financial Instruments - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017USD ($)security | Dec. 31, 2016USD ($) | |
Derivative [Line Items] | ||
Cash collateral received for derivative instruments | $ 3,510 | $ 1,990 |
Cash collateral provided for derivative instruments | 1,830 | 4,390 |
Fair value of derivative liabilities | $ 13,792 | $ 16,684 |
Weighted average life of trusts | 4 years 3 months | 4 years 6 months |
LIBOR Indexed Floating Rate Loans | ||
Derivative [Line Items] | ||
Debt Instrument, Term | 5 years | |
Credit swap agreements | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 1,510 | |
Fair value of collateral posted | 1 | |
Maximum additional amount of payments related to termination events | $ 1,510 | |
Interest rate swap | Fair Value Hedges | Senior notes | ||
Derivative [Line Items] | ||
Number of securities | security | 8 | |
Interest rate swap | Fair Value Hedges | Subordinated note | ||
Derivative [Line Items] | ||
Number of securities | security | 1 |
Derivative Financial Instrume68
Derivative Financial Instruments - Schedule of Interest Rate Derivatives (Details) - Interest rate swap - Fair Value Hedges | Jun. 30, 2017 |
Senior notes | 1.35% notes due 2018 | |
Derivative [Line Items] | |
Fixed interest rate | 2.55% |
Senior notes | 2.55% notes due 2020 | |
Derivative [Line Items] | |
Fixed interest rate | 4.375% |
Senior notes | 1.95% Notes Due 2021 | |
Derivative [Line Items] | |
Fixed interest rate | 1.95% |
Senior notes | 4.38% note due 2021 | |
Derivative [Line Items] | |
Fixed interest rate | 2.653% |
Senior notes | 3.70% notes due in 2023 | |
Derivative [Line Items] | |
Fixed interest rate | 3.70% |
Senior notes | 3.30% notes due 2024 | |
Derivative [Line Items] | |
Fixed interest rate | 3.30% |
Senior notes | 3.55% notes due 2025 | |
Derivative [Line Items] | |
Fixed interest rate | 3.55% |
Senior notes | 2.65% notes due 2026 | |
Derivative [Line Items] | |
Fixed interest rate | 2.65% |
Subordinated note | 3.10% subordinated note due 2023 | |
Derivative [Line Items] | |
Fixed interest rate | 3.10% |
Derivative Financial Instrume69
Derivative Financial Instruments - Schedule of Outstanding Hedges: (Notional Amount) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | $ 10,157 | |
Additional compensation and employee benefits expense due to accelerated vesting | $ 249 | |
Derivatives not designated as hedging instruments | Interest-rate contracts(6) | Futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 13,455 | 12,154 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 0 | 1 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Forward, swap and spot | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 1,414,765 | 1,568,130 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options purchased | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 337 | 348 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options written | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 202 | 184 |
Derivatives not designated as hedging instruments | Other contracts | Stable value contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 27,182 | 25,400 |
Derivatives not designated as hedging instruments | Other contracts | Deferred value awards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 409 | 594 |
Derivatives designated as hedging instruments | Interest-rate contracts(6) | Swap agreements | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 10,169 | 10,157 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Forward and swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | $ 8,564 | $ 17,539 |
Derivative Financial Instrume70
Derivative Financial Instruments - Notional Amount of Interest Rate Swap Agreements Designated as Fair Value and Cash Flow Hedges (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Total | $ 10,157 | |
Investment securities available-for-sale | ||
Derivative [Line Items] | ||
Investment securities available-for-sale | 1,364 | |
Long-term debt | ||
Derivative [Line Items] | ||
Long-term debt | 8,493 | |
Floating-rate loans | ||
Derivative [Line Items] | ||
Long-term debt | 300 | |
Fair Value Hedges | ||
Derivative [Line Items] | ||
Total | 9,857 | $ 10,169 |
Increase in carrying value of long-term debt | 12 | (15) |
Fair Value Hedges | Investment securities available-for-sale | ||
Derivative [Line Items] | ||
Investment securities available-for-sale | 1,364 | 1,444 |
Fair Value Hedges | Long-term debt | ||
Derivative [Line Items] | ||
Long-term debt | 8,493 | $ 8,725 |
Fair Value Hedges | Floating-rate loans | ||
Derivative [Line Items] | ||
Long-term debt | 0 | |
Cash Flow Hedges | ||
Derivative [Line Items] | ||
Total | 300 | |
Cash Flow Hedges | Investment securities available-for-sale | ||
Derivative [Line Items] | ||
Investment securities available-for-sale | 0 | |
Cash Flow Hedges | Long-term debt | ||
Derivative [Line Items] | ||
Long-term debt | 0 | |
Cash Flow Hedges | Floating-rate loans | ||
Derivative [Line Items] | ||
Long-term debt | $ 300 |
Derivative Financial Instrume71
Derivative Financial Instruments - Contractual and Weighted-Average Interest Rates, Which Include the Effects of Hedges Related to Financial Instruments (Details) - Long-term debt | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative [Line Items] | ||||
Contractual rates | 3.34% | 3.43% | 3.37% | 3.43% |
Rate including impact of hedges | 2.61% | 2.24% | 2.58% | 2.22% |
Derivative Financial Instrume72
Derivative Financial Instruments - Schedule of The Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 13,371 | $ 16,552 |
Fair value of derivative liabilities | 13,792 | 16,684 |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 13,371 | 16,484 |
Fair value of derivative liabilities | 13,312 | 15,956 |
Interest-rate contracts(6) | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 68 | |
Fair value of derivative liabilities | 124 | 348 |
Derivatives not designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 13,323 | 15,982 |
Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 13,522 | 16,261 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 13,323 | 15,982 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 13,166 | 15,881 |
Derivatives not designated as hedging instruments | Other derivative contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 356 | 380 |
Derivatives designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 48 | 570 |
Derivatives designated as hedging instruments | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 270 | 423 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 48 | 502 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 146 | 75 |
Derivatives designated as hedging instruments | Interest-rate contracts(6) | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 68 |
Derivatives designated as hedging instruments | Interest-rate contracts(6) | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 124 | $ 348 |
Derivative Financial Instrume73
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statement of Income (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | $ 149 | $ 212 | $ 247 | $ 435 |
Foreign exchange contracts | Trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 170 | 162 | 333 | 316 |
Interest-rate contracts(6) | Trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 8 | (3) | 9 | (4) |
Interest-rate contracts(6) | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | 0 | 1 |
Credit derivative contracts | Trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | 0 | (1) |
Other derivative contracts | Trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | (4) | 0 | (4) |
Other derivative contracts | Compensation and employee benefits | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | $ (29) | $ 57 | $ (95) | $ 127 |
Derivative Financial Instrume74
Derivative Financial Instruments - Schedule of Differences Between the Gains (Losses) on the Derivative and The Gains (Losses) on the Hedged Item (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative [Line Items] | ||||
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes | $ (3) | $ 3 | $ (9) | $ 22 |
Derivatives designated as hedging instruments | Fair Value Hedges | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 173 | 95 | 1,142 | 605 |
Gain (loss) on fair value hedges recognized in earnings | (170) | (88) | (1,140) | (589) |
Derivatives designated as hedging instruments | Fair Value Hedges | Investment securities available-for-sale | Foreign exchange contracts | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 4 | (25) | 2 | 19 |
Gain (loss) on fair value hedges recognized in earnings | (4) | 25 | (2) | (19) |
Derivatives designated as hedging instruments | Fair Value Hedges | Investment securities available-for-sale | Interest-rate contracts(6) | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 3 | (6) | 15 | (36) |
Gain (loss) on fair value hedges recognized in earnings | (2) | 6 | (13) | 37 |
Derivatives designated as hedging instruments | Fair Value Hedges | Deposits | Foreign exchange contracts | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 102 | (2) | 1,081 | 246 |
Gain (loss) on fair value hedges recognized in earnings | (101) | 2 | (1,081) | (246) |
Derivatives designated as hedging instruments | Fair Value Hedges | Long-term debt | Interest-rate contracts(6) | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 64 | 128 | 44 | 376 |
Gain (loss) on fair value hedges recognized in earnings | (63) | (121) | (44) | (361) |
Derivatives designated as hedging instruments | Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 7 | 6 | 13 | 11 |
Gain (loss) on derivative recognized in OCI | 13 | (114) | (93) | (227) |
Gain (loss) on hedges reclassified to income | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | Cash Flow Hedges | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative recognized in OCI | 14 | (114) | (92) | (227) |
Derivatives designated as hedging instruments | Cash Flow Hedges | Foreign exchange contracts | Net interest revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 7 | 6 | 13 | 11 |
Gain (loss) on hedges reclassified to income | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | Cash Flow Hedges | Interest-rate contracts(6) | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative recognized in OCI | (1) | 0 | (1) | 0 |
Derivatives designated as hedging instruments | Cash Flow Hedges | Interest-rate contracts(6) | Net interest revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | 0 | 0 |
Gain (loss) on hedges reclassified to income | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | Investment Hedges | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | 0 | 0 |
Gain (loss) on derivative recognized in OCI | (87) | 51 | (101) | 51 |
Gain (loss) on hedges reclassified to income | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | Investment Hedges | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative recognized in OCI | (87) | 51 | (101) | 51 |
Derivatives designated as hedging instruments | Investment Hedges | Foreign exchange contracts | Gains (Losses) related to investment securities, net | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | 0 | 0 |
Gain (loss) on hedges reclassified to income | $ 0 | $ 0 | $ 0 | $ 0 |
Offsetting Arrangements - Narra
Offsetting Arrangements - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Offsetting [Abstract] | ||
Fair Value of securities received as collateral that can be resold or repledged | $ 2,690 | $ 1,770 |
Fair Value of securities received as collateral that have been resold or repledged | $ 10.5 | $ 166 |
Offsetting Arrangements - Asset
Offsetting Arrangements - Assets With Offsetting Arrangements (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | $ 13,371 | $ 16,552 |
Derivatives, Gross Amounts Offset in Statement of Condition | (9,243) | (9,231) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 4,128 | 7,321 |
Derivatives, Net Amount | 3,961 | 7,074 |
Derivatives, Cash collateral and securities netting, offset | (3,097) | (906) |
Derivatives, Cash collateral and securities netting, Cash and Securities Received | (167) | (247) |
Derivatives, Cash collateral and securities netting, Net | (3,264) | (1,153) |
Resale agreements and securities borrowing, Gross Amounts of Recognized Assets | 60,700 | 58,677 |
Resale agreements and securities borrowing, Gross Amounts Offset in Statement of Condition | (34,997) | (35,517) |
Resale agreements and securities borrowing, Net Amounts of Assets Presented in Statement of Condition | 25,703 | 23,160 |
Resale agreements and securities borrowing, Cash and Securities Received | (25,703) | (22,939) |
Resale agreements and securities borrowing, Net Amount | 0 | 221 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Assets | 74,071 | 75,229 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | (44,240) | (44,748) |
Total derivatives and other financial instruments, Net Amounts of Assets Presented in Statement of Condition | 29,831 | 30,481 |
Total derivatives and other financial instruments, Cash and Securities Received(5) | (25,870) | (23,186) |
Total derivatives and other financial instruments, Net Amount | 3,961 | 7,295 |
Securities purchased under resale agreements | 3,172 | 1,956 |
Securities borrowed subject to master netting arrangements | (22,531) | (21,204) |
Foreign exchange contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 13,371 | 16,484 |
Derivatives, Gross Amounts Offset in Statement of Condition | (6,146) | (8,257) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 7,225 | 8,227 |
Derivatives, Net Amount | $ 7,225 | 8,227 |
Interest-rate contracts(6) | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 68 | |
Derivatives, Gross Amounts Offset in Statement of Condition | (68) | |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 0 | |
Derivatives, Net Amount | $ 0 |
Offsetting Arrangements - Liabi
Offsetting Arrangements - Liabilities With Offsetting Arrangements (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | $ 13,792 | $ 16,684 |
Derivatives, Gross amounts offset in statement of condition | (7,340) | (10,682) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 6,452 | 6,002 |
Derivative, Net Amount | 6,134 | 5,822 |
Derivatives, Cash and collateral securities netting, offset | (1,193) | (2,356) |
Derivatives, Cash and collateral securities netting, Cash and Securities Provided | (318) | (180) |
Derivatives, Cash and collateral securities netting, Net | (1,511) | (2,536) |
Resale agreements and securities lending, Gross Amounts of Recognized Liabilities(1)(2) | 43,168 | 44,933 |
Resale agreements and securities lending, Gross Amounts Offset in Statement of Condition(3) | (34,997) | (35,517) |
Resale agreements and securities lending, Net Amounts of Liabilities Presented in Statement of Condition | 8,171 | 9,416 |
Resale agreements and securities lending, Cash and Securities Provided | (5,844) | (7,059) |
Resale agreements and securities lending, Net Amount | 2,327 | 2,357 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Liabilities | 56,960 | 61,617 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | (42,337) | (46,199) |
Total derivatives and other financial instruments, Net Amounts of Liabilities Presented in Statement of Condition | 14,623 | 15,418 |
Total derivatives and other financial instruments, Cash and Securities Provided | (6,162) | (7,239) |
Total derivatives and other financial instruments, Net Amount | 8,461 | 8,179 |
Securities sold under repurchase agreements | 3,856 | 4,400 |
Securities lending, fair value, amount not offset against collateral | 4,315 | 5,016 |
Foreign exchange contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 13,312 | 15,956 |
Derivatives, Gross amounts offset in statement of condition | (6,145) | (8,253) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 7,167 | 7,703 |
Derivative, Net Amount | 7,167 | 7,703 |
Interest-rate contracts(6) | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 124 | 348 |
Derivatives, Gross amounts offset in statement of condition | (2) | (73) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 122 | 275 |
Derivative, Net Amount | 122 | 275 |
Other derivative contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 356 | 380 |
Derivatives, Gross amounts offset in statement of condition | 0 | 0 |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 356 | 380 |
Derivative, Net Amount | $ 356 | $ 380 |
Offsetting Arrangements - Repo,
Offsetting Arrangements - Repo, Sec Lending Transactions Maturity By Category (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | $ 33,960 | $ 35,509 |
Securities lending transactions | 9,208 | 9,424 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 43,168 | 44,933 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 33,960 | 35,509 |
Securities lending transactions | 8,771 | 8,390 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 42,731 | 43,899 |
Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending transactions | 0 | 0 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 0 | 0 |
30 – 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending transactions | 437 | 1,034 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 437 | 1,034 |
U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 33,960 | 35,509 |
U.S. Treasury and agency securities | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 33,960 | 35,509 |
U.S. Treasury and agency securities | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
U.S. Treasury and agency securities | 30 – 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 45 | 53 |
Corporate debt securities | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 45 | 53 |
Corporate debt securities | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 0 | 0 |
Corporate debt securities | 30 – 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 0 | 0 |
Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 9,107 | 9,371 |
Equity securities | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 8,670 | 8,337 |
Equity securities | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 0 | 0 |
Equity securities | 30 – 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 437 | $ 1,034 |
Non-U.S. sovereign debt | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 56 | |
Non-U.S. sovereign debt | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 56 | |
Non-U.S. sovereign debt | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 0 | |
Non-U.S. sovereign debt | 30 – 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | $ 0 |
Commitments and Guarantees - Na
Commitments and Guarantees - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | ||
Unfunded commitments to extend credit, short term | 72.00% | |
Term of unfunded commitment | 1 year | |
Cash collateral provided for securities lending | $ 22,530 | $ 21,200 |
Accrued expenses and other liabilities | ||
Loss Contingencies [Line Items] | ||
Cash collateral received in connection to securities finance activities | $ 4,310 | $ 5,020 |
Commitments and Guarantees - Co
Commitments and Guarantees - Contractual Amounts of Credit-Related Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded commitments to extend credit | $ 26,708 | $ 26,993 |
Indemnified securities financing | 370,472 | 360,452 |
Stable value protection | 25,400 | 27,182 |
Standby letters of credit | $ 3,410 | $ 3,459 |
Commitments and Guarantees - Sc
Commitments and Guarantees - Schedule Of Repurchase Agreements (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Fair value of indemnified securities financing | $ 370,472 | $ 360,452 |
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing | 387,747 | 377,919 |
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements | 64,824 | 60,003 |
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements | $ 69,100 | $ 63,959 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) £ in Millions | Jan. 18, 2017USD ($) | Jan. 31, 2014USD ($) | Jan. 31, 2014GBP (£) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Loss Contingencies [Line Items] | |||||
Legal reserves | $ 45,000,000 | ||||
Unrecognized tax benefits | 63,000,000 | $ 71,000,000 | |||
Minimum | |||||
Loss Contingencies [Line Items] | |||||
Estimate of possible loss | 0 | ||||
Maximum | |||||
Loss Contingencies [Line Items] | |||||
Estimate of possible loss | 15,000,000 | ||||
GovEx Inquiry | |||||
Loss Contingencies [Line Items] | |||||
Litigation reserve | 3,000,000 | ||||
Legal Reserve | Invoicing Matter | |||||
Loss Contingencies [Line Items] | |||||
Legal reserves | 32,000,000 | ||||
Estimate of possible loss | 340,000,000 | ||||
Regulatory Matter | Transition Management | |||||
Loss Contingencies [Line Items] | |||||
Legal reserves | $ 32,300,000 | ||||
U.K. FCA | Regulatory Matter | Transition Management | |||||
Loss Contingencies [Line Items] | |||||
Settlement, amount | $ 37,800,000 | £ 22.9 | |||
Department of Justice | Regulatory Matter | Transition Management | |||||
Loss Contingencies [Line Items] | |||||
Settlement, amount | $ 32,300,000 | ||||
SEC | Regulatory Matter | Transition Management | |||||
Loss Contingencies [Line Items] | |||||
Settlement, amount | $ 32,300,000 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Investment securities related to state and political subdivisions | $ 1,310,000,000 | $ 1,350,000,000 |
Variable interest entity, other short-term borrowings | $ 1,110,000,000 | $ 1,160,000,000 |
Weighted average life of trusts | 4 years 3 months | 4 years 6 months |
Total standby bond-purchase agreement committed to trusts | $ 1,130,000,000 | |
Total letters of credit committed to trusts | 351,000,000 | |
Standby purchase agreements and letters of credit commitments utilized | 0 | |
VIE - primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | |
Liabilities | 0 | |
VIE - not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Potential maximum loss exposure of unconsolidated funds | $ 94,000,000 | $ 121,000,000 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Preferred Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Class of Stock [Line Items] | ||
Proceeds from issuance of preferred stock, net | $ 0 | $ 493 |
Series C Preferred Stock, Depository Share | ||
Class of Stock [Line Items] | ||
Depositary shares issued (shares) | 20,000,000 | |
Liquidation preference per share (USD per share) | $ 25 | |
Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Ownership Interest Per Depositary Share | 0.025% | |
Liquidation preference per share (USD per share) | $ 100,000 | |
Proceeds from issuance of preferred stock, net | $ 488 | |
Series D Preferred Stock, Depository Share | ||
Class of Stock [Line Items] | ||
Depositary shares issued (shares) | 30,000,000 | |
Liquidation preference per share (USD per share) | $ 25 | |
Series D Preferred Stock | ||
Class of Stock [Line Items] | ||
Ownership Interest Per Depositary Share | 0.025% | |
Liquidation preference per share (USD per share) | $ 100,000 | |
Proceeds from issuance of preferred stock, net | $ 742 | |
Series E Preferred Stock, Depository Share | ||
Class of Stock [Line Items] | ||
Depositary shares issued (shares) | 30,000,000 | |
Liquidation preference per share (USD per share) | $ 25 | |
Series E Preferred Stock | ||
Class of Stock [Line Items] | ||
Ownership Interest Per Depositary Share | 0.025% | |
Liquidation preference per share (USD per share) | $ 100,000 | |
Proceeds from issuance of preferred stock, net | $ 728 | |
Series F Preferred Stock, Depository Share | ||
Class of Stock [Line Items] | ||
Depositary shares issued (shares) | 750,000 | |
Liquidation preference per share (USD per share) | $ 1,000 | |
Series F Preferred Stock | ||
Class of Stock [Line Items] | ||
Ownership Interest Per Depositary Share | 1.00% | |
Liquidation preference per share (USD per share) | $ 100,000 | |
Proceeds from issuance of preferred stock, net | $ 742 | |
Series G Preferred Stock, Depository Share | ||
Class of Stock [Line Items] | ||
Depositary shares issued (shares) | 20,000,000 | |
Liquidation preference per share (USD per share) | $ 25 | |
Series G Preferred Stock | ||
Class of Stock [Line Items] | ||
Ownership Interest Per Depositary Share | 0.025% | |
Liquidation preference per share (USD per share) | $ 100,000 | |
Proceeds from issuance of preferred stock, net | $ 493 |
Shareholders' Equity - Schedu85
Shareholders' Equity - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Dividends Payable [Line Items] | |||||
Preferred stock cash dividend | $ 36 | $ 33 | $ 91 | $ 82 | |
Common Stock Dividends Declared (in USD per share) | $ 0.38 | $ 0.34 | $ 0.76 | $ 0.68 | |
Common Stock Dividends | $ 142 | $ 133 | $ 286 | $ 268 | |
Series C Preferred Stock | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 1,313 | $ 1,313 | $ 2,626 | $ 2,626 | |
Preferred stock cash dividend | $ 7 | $ 6 | $ 13 | $ 13 | |
Series C Preferred Stock, Depository Share | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 0.33 | $ 0.33 | $ 0.66 | $ 0.66 | |
Series D Preferred Stock | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 1,475 | $ 1,475 | $ 2,950 | $ 2,950 | |
Preferred stock cash dividend | $ 11 | $ 11 | $ 22 | $ 22 | |
Series D Preferred Stock, Depository Share | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 0.37 | $ 0.37 | $ 0.74 | $ 0.74 | |
Series E Preferred Stock | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 1,500 | $ 1,500 | $ 3,000 | $ 3,000 | |
Preferred stock cash dividend | $ 11 | $ 11 | $ 22 | $ 22 | |
Series E Preferred Stock, Depository Share | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 0.38 | $ 0.38 | $ 0.76 | $ 0.76 | |
Series F Preferred Stock | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 0 | $ 0 | $ 2,625 | $ 2,625 | |
Preferred stock cash dividend | $ 0 | $ 0 | $ 20 | $ 20 | |
Series F Preferred Stock, Depository Share | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 0 | $ 0 | $ 26.25 | $ 26.25 | |
Series G Preferred Stock | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 1,338 | $ 951 | $ 2,676 | $ 951 | |
Preferred stock cash dividend | $ 7 | $ 5 | $ 14 | $ 5 | |
Series G Preferred Stock, Depository Share | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 0.33 | $ 0.24 | $ 0.66 | $ 0.24 | |
Subsequent Event | Series C Preferred Stock | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 1,313 | ||||
Preferred stock cash dividend | $ 6 | ||||
Subsequent Event | Series C Preferred Stock, Depository Share | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 0.33 | ||||
Subsequent Event | Series D Preferred Stock | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 1,475 | ||||
Preferred stock cash dividend | $ 11 | ||||
Subsequent Event | Series D Preferred Stock, Depository Share | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 0.37 | ||||
Subsequent Event | Series E Preferred Stock | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 1,500 | ||||
Preferred stock cash dividend | $ 11 | ||||
Subsequent Event | Series E Preferred Stock, Depository Share | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 0.38 | ||||
Subsequent Event | Series F Preferred Stock | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 2,625 | ||||
Preferred stock cash dividend | $ 20 | ||||
Subsequent Event | Series F Preferred Stock, Depository Share | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 26.25 | ||||
Subsequent Event | Series G Preferred Stock | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 1,338 | ||||
Preferred stock cash dividend | $ 7 | ||||
Subsequent Event | Series G Preferred Stock, Depository Share | |||||
Dividends Payable [Line Items] | |||||
Preferred dividends declared (USD per share) | $ 0.33 |
Shareholders' Equity - Schedu86
Shareholders' Equity - Schedule of Shares Repurchase Plans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
2017 Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Amount of common stock authorized for repurchase | $ 1,400,000,000 | $ 1,400,000,000 | ||
Shares Purchased | 0 | |||
2016 Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Amount of common stock authorized for repurchase | $ 1,400,000,000 | |||
Shares Purchased | 2,700,000 | 9,400,000 | ||
Average Cost per Share (USD per share) | $ 83.84 | $ 79.93 | ||
Total Purchased | $ 227,000,000 | $ 750,000,000 | ||
Boston Financial Data Services, Inc. and International Financial Data Services | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock received in acquisition | $ 158,000,000 |
Shareholders' Equity - Schedu87
Shareholders' Equity - Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Net unrealized gains (losses) on cash flow hedges | $ (18) | $ 229 |
Net unrealized gains (losses) on available-for-sale securities portfolio | 254 | (225) |
Net unrealized gains (losses) related to reclassified available-for-sale securities | 18 | 25 |
Net unrealized gains (losses) on available-for-sale securities | 272 | (200) |
Net unrealized losses on available-for-sale securities designated in fair value hedges | (77) | (86) |
Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries | (6) | 95 |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit | (7) | (9) |
Net unrealized losses on retirement plans | (186) | (194) |
Foreign currency translation | (1,248) | (1,875) |
Total | $ (1,270) | $ (2,040) |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 21,219 | $ 21,103 |
Ending balance | 22,068 | 22,073 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (2,040) | (1,442) |
Other comprehensive income (loss) before reclassifications | 785 | 442 |
Amounts reclassified into (out of) earnings | (15) | 3 |
Other comprehensive income (loss) | 770 | 445 |
Ending balance | (1,270) | (997) |
Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 229 | 293 |
Other comprehensive income (loss) before reclassifications | (247) | (174) |
Amounts reclassified into (out of) earnings | 0 | 0 |
Other comprehensive income (loss) | (247) | (174) |
Ending balance | (18) | 119 |
Net Unrealized Gains (Losses) on Available-for-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (286) | (128) |
Other comprehensive income (loss) before reclassifications | 505 | 522 |
Amounts reclassified into (out of) earnings | (24) | 2 |
Other comprehensive income (loss) | 481 | 524 |
Ending balance | 195 | 396 |
Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 95 | (14) |
Other comprehensive income (loss) before reclassifications | (101) | 51 |
Amounts reclassified into (out of) earnings | 0 | 0 |
Other comprehensive income (loss) | (101) | 51 |
Ending balance | (6) | 37 |
Other-Than-Temporary Impairment on Held-to-Maturity Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (9) | (16) |
Other comprehensive income (loss) before reclassifications | 2 | 4 |
Amounts reclassified into (out of) earnings | 0 | (1) |
Other comprehensive income (loss) | 2 | 3 |
Ending balance | (7) | (13) |
Net Unrealized Losses on Retirement Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (194) | (183) |
Other comprehensive income (loss) before reclassifications | (1) | (4) |
Amounts reclassified into (out of) earnings | 9 | 2 |
Other comprehensive income (loss) | 8 | (2) |
Ending balance | (186) | (185) |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1,875) | (1,394) |
Other comprehensive income (loss) before reclassifications | 627 | 43 |
Amounts reclassified into (out of) earnings | 0 | 0 |
Other comprehensive income (loss) | 627 | 43 |
Ending balance | $ (1,248) | $ (1,351) |
Shareholders' Equity - Adjustme
Shareholders' Equity - Adjustments to Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Class of Stock [Line Items] | ||||
Total reclassifications into AOCI | $ 3 | $ (1) | $ (15) | $ 3 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Available-for-Sale Securities | ||||
Class of Stock [Line Items] | ||||
Net realized gains (losses) from sales of available-for-sale securities, net of related taxes | 0 | (1) | (24) | 2 |
Net realized gains from sales of available-for-sale securities, taxes | 16 | (1) | ||
Reclassification out of Accumulated Other Comprehensive Income | Other-Than-Temporary Impairment on Securities | ||||
Class of Stock [Line Items] | ||||
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit | 0 | (1) | 0 | (1) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Actuarial Losses | ||||
Class of Stock [Line Items] | ||||
Amortization of actuarial losses, net of related taxes | (3) | (1) | 9 | (2) |
Amortization of actuarial losses, taxes | $ 1 | $ (1) | $ (2) | $ (3) |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Retained earnings | $ 18,202 | $ 17,459 |
Capital ratio: required common equity tier 1 capital | 6.50% | 5.50% |
Capital ratio: required tier 1 capital | 8.00% | 7.00% |
Capital ratio: required total capital | 10.00% | 9.00% |
Capital ratio: required tier 1 leverage | 4.00% | 4.00% |
Percentage of goodwill and other intangible assets net of associated deferred tax liabilities allocated to other intangible assets | 80.00% | 60.00% |
Basel III Advanced Approaches | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,307 | $ 10,286 |
Retained earnings | 18,202 | 17,459 |
Accumulated other comprehensive income (loss) | (1,266) | (1,936) |
Treasury stock, at cost | (8,367) | (7,682) |
Total | 18,876 | 18,127 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (6,714) | (6,348) |
Other adjustments | (155) | (155) |
Common equity tier 1 capital | 12,007 | 11,624 |
Preferred stock | 3,196 | 3,196 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 0 |
Other adjustments | (38) | (103) |
Tier 1 capital | 15,165 | 14,717 |
Qualifying subordinated long-term debt | 1,074 | 1,172 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 4 | 19 |
Other adjustments | 0 | 1 |
Total capital | 16,243 | 15,909 |
Credit risk | 52,755 | 50,900 |
Operational risk(4) | 44,123 | 44,579 |
Market risk | 3,387 | 3,822 |
Total risk-weighted assets | 100,265 | 99,301 |
Adjusted quarterly average assets | $ 216,940 | $ 226,310 |
Common equity tier 1 capital | 12.00% | 11.70% |
Tier 1 capital | 15.10% | 14.80% |
Total capital | 16.20% | 16.00% |
Tier 1 leveraged | 7.00% | 6.50% |
Basel III Standardized Approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,307 | $ 10,286 |
Retained earnings | 18,202 | 17,459 |
Accumulated other comprehensive income (loss) | (1,266) | (1,936) |
Treasury stock, at cost | (8,367) | (7,682) |
Total | 18,876 | 18,127 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (6,714) | (6,348) |
Other adjustments | (155) | (155) |
Common equity tier 1 capital | 12,007 | 11,624 |
Preferred stock | 3,196 | 3,196 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 0 |
Other adjustments | (38) | (103) |
Tier 1 capital | 15,165 | 14,717 |
Qualifying subordinated long-term debt | 1,074 | 1,172 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 75 | 77 |
Other adjustments | 0 | 1 |
Total capital | 16,314 | 15,967 |
Credit risk | 105,785 | 98,125 |
Market risk | 1,284 | 1,751 |
Total risk-weighted assets | 107,069 | 99,876 |
Adjusted quarterly average assets | $ 216,940 | $ 226,310 |
Common equity tier 1 capital | 11.20% | 11.60% |
Tier 1 capital | 14.20% | 14.70% |
Total capital | 15.20% | 16.00% |
Tier 1 leveraged | 7.00% | 6.50% |
State Street Bank | Basel III Advanced Approaches | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 11,382 | $ 11,376 |
Retained earnings | 12,188 | 12,285 |
Accumulated other comprehensive income (loss) | (1,060) | (1,648) |
Treasury stock, at cost | 0 | 0 |
Total | 22,510 | 22,013 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (6,417) | (6,060) |
Other adjustments | (91) | (148) |
Common equity tier 1 capital | 16,002 | 15,805 |
Preferred stock | 0 | 0 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 0 |
Other adjustments | 0 | 0 |
Tier 1 capital | 16,002 | 15,805 |
Qualifying subordinated long-term debt | 1,078 | 1,179 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 0 | 15 |
Other adjustments | 0 | 0 |
Total capital | 17,080 | 16,999 |
Credit risk | 50,010 | 47,383 |
Operational risk(4) | 43,552 | 44,043 |
Market risk | 3,388 | 3,822 |
Total risk-weighted assets | 96,950 | 95,248 |
Adjusted quarterly average assets | $ 214,022 | $ 222,584 |
Common equity tier 1 capital | 16.50% | 16.60% |
Tier 1 capital | 16.50% | 16.60% |
Total capital | 17.60% | 17.80% |
Tier 1 leveraged | 7.50% | 7.10% |
State Street Bank | Basel III Standardized Approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 11,382 | $ 11,376 |
Retained earnings | 12,188 | 12,285 |
Accumulated other comprehensive income (loss) | (1,060) | (1,648) |
Treasury stock, at cost | 0 | 0 |
Total | 22,510 | 22,013 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (6,417) | (6,060) |
Other adjustments | (91) | (148) |
Common equity tier 1 capital | 16,002 | 15,805 |
Preferred stock | 0 | 0 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 0 |
Other adjustments | 0 | 0 |
Tier 1 capital | 16,002 | 15,805 |
Qualifying subordinated long-term debt | 1,078 | 1,179 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 75 | 77 |
Other adjustments | 0 | 0 |
Total capital | 17,155 | 17,061 |
Credit risk | 102,642 | 94,413 |
Market risk | 1,284 | 1,751 |
Total risk-weighted assets | 103,926 | 96,164 |
Adjusted quarterly average assets | $ 214,022 | $ 222,584 |
Common equity tier 1 capital | 15.40% | 16.40% |
Tier 1 capital | 15.40% | 16.40% |
Total capital | 16.50% | 17.70% |
Tier 1 leveraged | 7.50% | 7.10% |
Net Interest Income - Component
Net Interest Income - Components of Interest Revenue and Interest Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Banking and Thrift [Abstract] | ||||
Deposits with banks | $ 41 | $ 30 | $ 76 | $ 73 |
U.S. Treasury and federal agencies | 208 | 209 | 420 | 420 |
State and political subdivisions | 56 | 54 | 114 | 108 |
Other investments | 164 | 189 | 323 | 371 |
Securities purchased under resale agreements | 69 | 35 | 115 | 71 |
Loans and leases | 118 | 93 | 224 | 184 |
Other interest-earning assets | 44 | 10 | 78 | 22 |
Total interest income | 700 | 620 | 1,350 | 1,249 |
Deposits | 14 | 16 | 57 | 54 |
Securities sold under repurchase agreements | 0 | 0 | 1 | 1 |
Short-term borrowings | 3 | 2 | 5 | 2 |
Long-term debt | 75 | 62 | 148 | 122 |
Other interest-bearing liabilities | 33 | 19 | 54 | 37 |
Total interest expense | 125 | 99 | 265 | 216 |
Net interest income | $ 575 | $ 521 | $ 1,085 | $ 1,033 |
Expenses - Schedule of Expenses
Expenses - Schedule of Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Expenses [Abstract] | ||||
Insurance | $ 28 | $ 21 | $ 58 | $ 44 |
Regulatory fees and assessments | 18 | 18 | 45 | 38 |
Securities processing | 9 | 6 | 16 | 10 |
Litigation | (17) | 0 | (17) | 0 |
Other | 94 | 93 | 181 | 158 |
Total other expenses | $ 132 | $ 138 | $ 283 | $ 250 |
Expenses - Narrative (Details)
Expenses - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Acquisition related costs | $ 9 | $ 7 | ||||
Restructuring charges | 62 | 13 | $ 79 | $ 110 | ||
State Street Beacon | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 62 | $ 16 | 13 | $ 97 | ||
State Street Beacon | Severance and Benefit Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 60 | $ 14 | $ (1) | $ 86 |
Expenses - Restructuring Reserv
Expenses - Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Reserve [Roll Forward] | ||||||
Accruals for State Street Beacon | $ 62 | $ 13 | $ 79 | $ 110 | ||
State Street Beacon | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 54 | $ 56 | 108 | $ 23 | 56 | 23 |
Accruals for State Street Beacon | 62 | 16 | 13 | 97 | ||
Payments and Other Adjustments | (16) | (18) | (39) | (12) | ||
Ending balance | 100 | 54 | 82 | 108 | 100 | 82 |
State Street Beacon | Employee Related Costs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 38 | 37 | 91 | 9 | 37 | 9 |
Accruals for State Street Beacon | 60 | 14 | (1) | 86 | ||
Payments and Other Adjustments | (11) | (13) | (35) | (4) | ||
Ending balance | 87 | 38 | 55 | 91 | 87 | 55 |
State Street Beacon | Real Estate Consolidation | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 14 | 17 | 10 | 11 | 17 | 11 |
Accruals for State Street Beacon | 0 | 0 | 15 | 0 | ||
Payments and Other Adjustments | (3) | (3) | (3) | (1) | ||
Ending balance | 11 | 14 | 22 | 10 | 11 | 22 |
State Street Beacon | Asset and Other Write-offs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 2 | 2 | 7 | 3 | 2 | 3 |
Accruals for State Street Beacon | 2 | 2 | (1) | 11 | ||
Payments and Other Adjustments | (2) | (2) | (1) | (7) | ||
Ending balance | $ 2 | $ 2 | $ 5 | $ 7 | $ 2 | $ 5 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 620 | $ 619 | $ 1,122 | $ 987 |
Preferred stock dividends | (36) | (33) | (91) | (82) |
Dividends and undistributed earnings allocated to participating securities | 0 | (1) | (1) | (1) |
Net income available to common shareholders | $ 584 | $ 585 | $ 1,030 | $ 904 |
Basic average common shares | 375,395 | 394,160 | 378,293 | 396,790 |
Effect of dilutive securities: common stock options and common stock awards (in shares) | 5,520 | 4,687 | 5,196 | 4,323 |
Diluted average common shares | 380,915 | 398,847 | 383,489 | 401,113 |
Anti-dilutive securities (in shares) | 293 | 3,277 | 527 | 3,426 |
Earnings per Common Share: | ||||
Basic (in USD per share) | $ 1.56 | $ 1.48 | $ 2.72 | $ 2.28 |
Diluted (in USD per share) | $ 1.53 | $ 1.47 | $ 2.69 | $ 2.25 |
Line of Business Information -
Line of Business Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2017line_of_business | |
Segment Reporting [Abstract] | |
Number of lines of business | 2 |
Line of Business Information 97
Line of Business Information - Summary of Line of Business (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 [Line Items] | ||||
Servicing fees | $ 1,339 | $ 1,239 | $ 2,635 | $ 2,481 |
Management fees | 397 | 293 | 779 | 563 |
Trading services | 289 | 267 | 564 | 539 |
Securities finance | 179 | 156 | 312 | 290 |
Processing fees and other | 31 | 98 | 143 | 150 |
Total fee revenue | 2,235 | 2,053 | 4,433 | 4,023 |
Net interest income | 575 | 521 | 1,085 | 1,033 |
Gains (losses) related to investment securities, net | 0 | (1) | (40) | 1 |
Total revenue | 2,810 | 2,573 | 5,478 | 5,057 |
Provision for loan losses | 3 | 4 | 1 | 8 |
Total expenses | 2,031 | 1,860 | 4,117 | 3,910 |
Income before income tax expense | $ 776 | $ 709 | $ 1,360 | $ 1,139 |
Pre-tax margin | 28.00% | 28.00% | 25.00% | 23.00% |
Operating Segments | Investment Servicing | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 1,339 | $ 1,239 | $ 2,635 | $ 2,481 |
Management fees | 0 | 0 | 0 | 0 |
Trading services | 272 | 254 | 529 | 512 |
Securities finance | 179 | 156 | 312 | 290 |
Processing fees and other | 32 | 103 | 138 | 152 |
Total fee revenue | 1,822 | 1,752 | 3,614 | 3,435 |
Net interest income | 576 | 520 | 1,085 | 1,032 |
Gains (losses) related to investment securities, net | 0 | (1) | (40) | 1 |
Total revenue | 2,398 | 2,271 | 4,659 | 4,468 |
Provision for loan losses | 3 | 4 | 1 | 8 |
Total expenses | 1,649 | 1,599 | 3,377 | 3,286 |
Income before income tax expense | $ 746 | $ 668 | $ 1,281 | $ 1,174 |
Pre-tax margin | 31.00% | 29.00% | 27.00% | 26.00% |
Operating Segments | Investment Management | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 0 | $ 0 | $ 0 | $ 0 |
Management fees | 397 | 293 | 779 | 563 |
Trading services | 17 | 13 | 35 | 27 |
Securities finance | 0 | 0 | 0 | 0 |
Processing fees and other | (1) | (5) | 5 | (2) |
Total fee revenue | 413 | 301 | 819 | 588 |
Net interest income | (1) | 1 | 0 | 1 |
Gains (losses) related to investment securities, net | 0 | 0 | 0 | 0 |
Total revenue | 412 | 302 | 819 | 589 |
Provision for loan losses | 0 | 0 | 0 | 0 |
Total expenses | 311 | 244 | 640 | 500 |
Income before income tax expense | $ 101 | $ 58 | $ 179 | $ 89 |
Pre-tax margin | 25.00% | 19.00% | 22.00% | 15.00% |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 0 | $ 0 | $ 0 | $ 0 |
Management fees | 0 | 0 | 0 | 0 |
Trading services | 0 | 0 | 0 | 0 |
Securities finance | 0 | 0 | 0 | 0 |
Processing fees and other | 0 | 0 | 0 | 0 |
Total fee revenue | 0 | 0 | 0 | 0 |
Net interest income | 0 | 0 | 0 | 0 |
Gains (losses) related to investment securities, net | 0 | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 | 0 |
Provision for loan losses | 0 | 0 | 0 | 0 |
Total expenses | 71 | 17 | 100 | 124 |
Income before income tax expense | $ (71) | $ (17) | $ (100) | $ (124) |
Non-U.S. Activities - Narrative
Non-U.S. Activities - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Segment Reporting Information [Line Items] | |||
Assets | $ 238,274 | $ 242,698 | |
Non-U.S. | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 73,200 | $ 84,600 |
Non-U.S. Activities - Schedule
Non-U.S. Activities - Schedule Of Results From Non-U.S. Operations (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 [Line Items] | ||||
Total revenue | $ 2,810 | $ 2,573 | $ 5,478 | $ 5,057 |
Income before income taxes | 776 | 709 | 1,360 | 1,139 |
Non-U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,172 | 1,136 | 2,268 | 2,161 |
Income before income taxes | 324 | 344 | 583 | 521 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,638 | 1,437 | 3,210 | 2,896 |
Income before income taxes | $ 452 | $ 365 | $ 777 | $ 618 |