Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MORGAN STANLEY | ||
Entity Central Index Key | 0000895421 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 1-11758 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 1585 Broadway | ||
Entity Address, City or Town | New York, | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10036 | ||
Entity Tax Identification Number | 36-3145972 | ||
City Area Code | (212) | ||
Local Phone Number | 761-4000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 69,733,657,018 | ||
Entity Common Stock, Shares Outstanding | 1,599,276,515 | ||
Common Stock, $0.01 par value | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | MS | ||
Security Exchange Name | NYSE | ||
Non-Cumulative Preferred Stock, Series A, $0.01 par value | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Non-Cumulative Preferred Stock, Series A, $0.01 par value | ||
Trading Symbol | MS/PA | ||
Security Exchange Name | NYSE | ||
Non-Cumulative Preferred Stock, Series E, $0.01 par value | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Non-Cumulative Preferred Stock, Series E, $0.01 par value | ||
Trading Symbol | MS/PE | ||
Security Exchange Name | NYSE | ||
Non-Cumulative Preferred Stock, Series F, $0.01 par value | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Non-Cumulative Preferred Stock, Series F, $0.01 par value | ||
Trading Symbol | MS/PF | ||
Security Exchange Name | NYSE | ||
Non-Cumulative Preferred Stock, Series I, $0.01 par value | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Non-Cumulative Preferred Stock, Series I, $0.01 par value | ||
Trading Symbol | MS/PI | ||
Security Exchange Name | NYSE | ||
Non-Cumulative Preferred Stock, Series K, $0.01 par value | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Non-Cumulative Preferred Stock, Series K, $0.01 par value | ||
Trading Symbol | MS/PK | ||
Security Exchange Name | NYSE | ||
Non-Cumulative Preferred Stock, Series L, $0.01 par value | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Non-Cumulative Preferred Stock, Series L, $0.01 par value | ||
Trading Symbol | MS/PL | ||
Security Exchange Name | NYSE | ||
Global Medium-Term Notes, Series A, Fixed Rate Step-Up Senior Notes Due 2026 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Global Medium-Term Notes, Series A, Fixed Rate Step-Up Senior Notes Due 2026 | ||
Trading Symbol | MS/26C | ||
Security Exchange Name | NYSE | ||
Market Vectors ETNs due March 31, 2020 (two issuances) | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Market Vectors ETNs due March 31, 2020 (two issuances) | ||
Trading Symbol | URR/DDR | ||
Security Exchange Name | NYSEArca | ||
Market Vectors ETNs due April 30, 2020 (two issuances) | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Market Vectors ETNs due April 30, 2020 (two issuances) | ||
Trading Symbol | CNY/INR | ||
Security Exchange Name | NYSEArca | ||
Morgan Stanley Cushing® MLP High Income Index ETNs due March 21, 2031 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Morgan Stanley Cushing® MLP High Income Index ETNs due March 21, 2031 | ||
Trading Symbol | MLPY | ||
Security Exchange Name | NYSEArca |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Investment banking | $ 6,163 | $ 6,482 | $ 6,003 |
Trading | 11,095 | 11,551 | 11,116 |
Investments | 1,540 | 437 | 820 |
Commissions and fees | 3,919 | 4,190 | 4,061 |
Asset management | 13,083 | 12,898 | 11,797 |
Other | 925 | 743 | 848 |
Total non-interest revenues | 36,725 | 36,301 | 34,645 |
Interest income | 17,098 | 13,892 | 8,997 |
Interest expense | 12,404 | 10,086 | 5,697 |
Net interest | 4,694 | 3,806 | 3,300 |
Net revenues | 41,419 | 40,107 | 37,945 |
Non-interest expenses | |||
Compensation and benefits | 18,837 | 17,632 | 17,166 |
Occupancy and equipment | 1,428 | 1,391 | 1,329 |
Brokerage, clearing and exchange fees | 2,493 | 2,393 | 2,093 |
Information processing and communications | 2,194 | 2,016 | 1,791 |
Marketing and business development | 660 | 691 | 609 |
Professional services | 2,137 | 2,265 | 2,169 |
Other | 2,369 | 2,482 | 2,385 |
Total non-interest expenses | 30,118 | 28,870 | 27,542 |
Income from continuing operations before income taxes | 11,301 | 11,237 | 10,403 |
Provision for income taxes | 2,064 | 2,350 | 4,168 |
Income from continuing operations | 9,237 | 8,887 | 6,235 |
Income (loss) from discontinued operations, net of income taxes | 0 | (4) | (19) |
Net income | 9,237 | 8,883 | 6,216 |
Net income applicable to noncontrolling interests | 195 | 135 | 105 |
Net income applicable to Morgan Stanley | 9,042 | 8,748 | 6,111 |
Preferred stock dividends and other | 530 | 526 | 523 |
Earnings applicable to Morgan Stanley common shareholders | $ 8,512 | $ 8,222 | $ 5,588 |
Earnings per basic common share | |||
Income from continuing operations (USD per share) | $ 5.26 | $ 4.81 | $ 3.15 |
Income (loss) from discontinued operations (USD per share) | 0 | 0 | (0.01) |
Earnings per basic common share (USD per share) | 5.26 | 4.81 | 3.14 |
Earnings per diluted common share | |||
Income from continuing operations (USD per share) | 5.19 | 4.73 | 3.08 |
Income (loss) from discontinued operations (USD per share) | 0 | 0 | (0.01) |
Earnings per diluted common share (USD per share) | $ 5.19 | $ 4.73 | $ 3.07 |
Average common shares outstanding | |||
Basic (shares) | 1,617 | 1,708 | 1,780 |
Diluted (shares) | 1,640 | 1,738 | 1,821 |
Consolidated Comprehensive Inco
Consolidated Comprehensive Income Statements - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 9,237 | $ 8,883 | $ 6,216 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 3 | (90) | 251 |
Change in net unrealized gains (losses) on available-for-sale securities | 1,137 | (272) | 41 |
Pension, postretirement and other | (66) | 137 | (117) |
Change in net debt valuation adjustment | (1,639) | 1,517 | (588) |
Total other comprehensive income (loss) | (565) | 1,292 | (413) |
Comprehensive income | 8,672 | 10,175 | 5,803 |
Net income applicable to noncontrolling interests | 195 | 135 | 105 |
Other comprehensive income (loss) applicable to noncontrolling interests | (69) | 87 | 4 |
Comprehensive income applicable to Morgan Stanley | $ 8,546 | $ 9,953 | $ 5,694 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 4,293 | $ 30,541 |
Interest bearing deposits with banks | 45,366 | 21,299 |
Restricted cash | 32,512 | 35,356 |
Trading assets at fair value ($128,386 and $120,437 were pledged to various parties) | 297,110 | 266,299 |
Investment securities (includes $62,223 and $61,061 at fair value) | 105,725 | 91,832 |
Securities purchased under agreements to resell (includes $4 and $— at fair value) | 88,224 | 98,522 |
Securities borrowed | 106,549 | 116,313 |
Customer and other receivables | 55,646 | 53,298 |
Held for investment (net of allowance of $349 and $238) | 118,060 | 99,815 |
Held for sale | 12,577 | 15,764 |
Goodwill | 7,143 | 6,688 |
Intangible assets (net of accumulated amortization of $3,204 and $2,877) | 2,107 | 2,163 |
Other assets | 20,117 | 15,641 |
Total assets | 895,429 | 853,531 |
Liabilities | ||
Deposits (includes $2,099 and $442 at fair value) | 190,356 | 187,820 |
Trading liabilities at fair value | 133,356 | 126,747 |
Securities sold under agreements to repurchase (includes $733 and $812 at fair value) | 54,200 | 49,759 |
Securities loaned | 8,506 | 11,908 |
Other secured financings (includes $7,809 and $5,245 at fair value) | 14,698 | 9,466 |
Customer and other payables | 197,834 | 179,559 |
Other liabilities and accrued expenses | 21,155 | 17,204 |
Borrowings (includes $64,461 and $51,184 at fair value) | 192,627 | 189,662 |
Total liabilities | 812,732 | 772,125 |
Commitments and contingent liabilities (see Note 13) | ||
Equity | ||
Preferred stock | 8,520 | 8,520 |
Common stock | 20 | 20 |
Additional paid-in capital | 23,935 | 23,794 |
Retained earnings | 70,589 | 64,175 |
Employee stock trusts | 2,918 | 2,836 |
Accumulated other comprehensive income (loss) | (2,788) | (2,292) |
Common stock held in treasury at cost, $0.01 par value (444,920,299 and 339,065,036 shares) | (18,727) | (13,971) |
Common stock issued to employee stock trusts | (2,918) | (2,836) |
Total Morgan Stanley shareholders’ equity | 81,549 | 80,246 |
Noncontrolling interests | 1,148 | 1,160 |
Total equity | 82,697 | 81,406 |
Total liabilities and equity | $ 895,429 | $ 853,531 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Trading assets pledged to various parties | $ 128,386 | $ 120,437 |
Investment securities at fair value | 62,223 | 61,061 |
Securities purchased under agreements to resell at fair value | 4 | 0 |
Loans held for investment, allowance | 349 | 238 |
Intangible assets, accumulated amortization | 3,204 | 2,877 |
Deposits at fair value | 2,099 | 442 |
Securities sold under agreement to repurchase at fair value | 733 | 812 |
Other secured financings at fair value | 7,809 | 5,245 |
Borrowings at fair value | $ 64,461 | $ 51,184 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (shares) | 3,500,000,000 | 3,500,000,000 |
Common stock issued (shares) | 2,038,893,979 | 2,038,893,979 |
Common stock outstanding (shares) | 1,593,973,680 | 1,699,828,943 |
Common stock held in treasury (shares) | 444,920,299 | 339,065,036 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Total Equity - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Employee Stock Trusts | Accumulated Other Comprehensive Income (Loss) | Common Stock Held In Treasury at Cost | Common Stock Issued to Employee Stock Trusts | Noncontrolling Interests | ||
Beginning balance at Dec. 31, 2016 | $ 7,520 | $ 23,271 | $ 53,679 | $ 2,851 | $ (2,643) | $ (5,797) | $ (2,851) | $ 1,127 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Share-based award activity | 306 | 56 | 878 | (56) | ||||||||
Issuance of preferred stock | 1,000 | (6) | ||||||||||
Redemption of preferred stock | [1] | 0 | ||||||||||
Net income applicable to Morgan Stanley | $ 6,111 | 6,111 | ||||||||||
Preferred stock dividends | (523) | (523) | [2] | |||||||||
Common stock dividends | [2] | (1,655) | ||||||||||
Repurchases of common stock and employee tax withholdings | (4,292) | |||||||||||
Net income applicable to noncontrolling interests | 105 | 105 | ||||||||||
Net change in Accumulated other comprehensive income (loss) | (413) | (417) | 4 | |||||||||
Other net increases (decreases) | (71) | 0 | (161) | |||||||||
Ending balance at Dec. 31, 2017 | 78,466 | 8,520 | $ 20 | 23,545 | 57,577 | 2,907 | (3,060) | (9,211) | (2,907) | 1,075 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Share-based award activity | 249 | (71) | 806 | 71 | ||||||||
Issuance of preferred stock | 0 | 0 | ||||||||||
Redemption of preferred stock | [1] | 0 | ||||||||||
Net income applicable to Morgan Stanley | 8,748 | 8,748 | ||||||||||
Preferred stock dividends | (526) | (526) | [2] | |||||||||
Common stock dividends | [2] | (1,930) | ||||||||||
Repurchases of common stock and employee tax withholdings | (5,566) | |||||||||||
Net income applicable to noncontrolling interests | 135 | 135 | ||||||||||
Net change in Accumulated other comprehensive income (loss) | 1,292 | 1,205 | 87 | |||||||||
Other net increases (decreases) | 0 | 0 | (137) | |||||||||
Ending balance at Dec. 31, 2018 | 81,406 | 8,520 | 20 | 23,794 | 64,175 | 2,836 | (2,292) | (13,971) | (2,836) | 1,160 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Share-based award activity | 131 | 82 | 1,198 | (82) | ||||||||
Issuance of preferred stock | 500 | (3) | ||||||||||
Redemption of preferred stock | [1] | (500) | ||||||||||
Net income applicable to Morgan Stanley | 9,042 | 9,042 | ||||||||||
Preferred stock dividends | (524) | (524) | [2] | |||||||||
Common stock dividends | [2] | (2,161) | ||||||||||
Repurchases of common stock and employee tax withholdings | (5,954) | |||||||||||
Net income applicable to noncontrolling interests | 195 | 195 | ||||||||||
Net change in Accumulated other comprehensive income (loss) | (565) | (496) | (69) | |||||||||
Other net increases (decreases) | 13 | (6) | (138) | |||||||||
Ending balance at Dec. 31, 2019 | $ 82,697 | $ 8,520 | $ 20 | $ 23,935 | $ 70,589 | $ 2,918 | $ (2,788) | $ (18,727) | $ (2,918) | $ 1,148 | ||
[1] | See Note 16 for information regarding the notice of redemption and reclassification of Series G Preferred Stock. | |||||||||||
[2] | See Note 16 for information regarding dividends per share for each class of stock. |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statements $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Cash flows from operating activities | |||
Net income | $ 9,237 | $ 8,883 | $ 6,216 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Deferred income taxes | 165 | 449 | 2,747 |
Stock-based compensation expense | 1,153 | 920 | 1,026 |
Depreciation and amortization | 2,643 | 1,844 | 1,753 |
Provision for (Release of) credit losses on lending activities | 162 | (15) | 29 |
Other operating adjustments | (195) | 199 | 153 |
Changes in assets and liabilities: | |||
Trading assets, net of Trading liabilities | (13,668) | 23,732 | (27,588) |
Securities borrowed | 9,764 | 7,697 | 1,226 |
Securities loaned | (3,402) | (1,684) | (2,252) |
Customer and other receivables and other assets | 233 | (728) | (9,315) |
Customer and other payables and other liabilities | 19,942 | (13,063) | 2,007 |
Securities purchased under agreements to resell | 10,298 | (14,264) | 17,697 |
Securities sold under agreements to repurchase | 4,441 | (6,665) | 1,796 |
Net cash provided by (used for) operating activities | 40,773 | 7,305 | (4,505) |
Cash flows from investing activities | |||
Other assets—Premises, equipment and software, net | (1,826) | (1,865) | (1,629) |
Changes in loans, net | (17,359) | (8,794) | (12,125) |
Investment securities: | |||
Purchases | (42,586) | (27,800) | (23,962) |
Proceeds from sales | 17,151 | 3,208 | 18,131 |
Proceeds from paydowns and maturities | 12,012 | 12,668 | 7,445 |
Other investing activities | (953) | (298) | (251) |
Net cash provided by (used for) investing activities | (33,561) | (22,881) | (12,391) |
Cash flows from financing activities | |||
Other secured financings | 3,695 | (1,226) | (1,573) |
Deposits | 2,513 | 28,384 | 3,573 |
Proceeds from: | |||
Issuance of preferred stock, net of issuance costs | 497 | 0 | 994 |
Issuance of Borrowings | 30,605 | 40,059 | 55,416 |
Payments for: | |||
Borrowings | (40,548) | (34,781) | (35,825) |
Repurchases of common stock and employee tax withholdings | (5,954) | (5,566) | (4,292) |
Cash dividends | (2,627) | (2,375) | (2,085) |
Other financing activities | (147) | (290) | 53 |
Net cash provided by (used for) financing activities | (11,966) | 24,205 | 16,261 |
Effect of exchange rate changes on cash and cash equivalents | (271) | (1,828) | 3,670 |
Net increase (decrease) in cash and cash equivalents | (5,025) | 6,801 | 3,035 |
Cash and cash equivalents, at beginning of period | 87,196 | 80,395 | 77,360 |
Cash and cash equivalents, at end of period | 82,171 | 87,196 | 80,395 |
Cash and cash equivalents: | |||
Cash and due from banks | 4,293 | 30,541 | 24,816 |
Interest bearing deposits with banks | 45,366 | 21,299 | 21,348 |
Restricted cash | 32,512 | 35,356 | 34,231 |
Supplemental Disclosure of Cash Flow Information | |||
Cash payments for interest | 12,511 | 9,977 | 5,377 |
Cash payments for income taxes, net of refunds | $ 1,908 | $ 1,377 | $ 1,390 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Introduction and Basis of Presentation | Introduction and Basis of Presentation The Firm Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K. A description of the clients and principal products and services of each of the Firm’s business segments is as follows: Institutional Securities provides investment banking, sales and trading, lending and other services to corporations, governments, financial institutions and high to ultra-high net worth clients. Investment banking services consist of capital raising and financial advisory services, including services relating to the underwriting of debt, equity and other securities, as well as advice on mergers and acquisitions, restructurings, real estate and project finance. Sales and trading services include sales, financing, prime brokerage and market-making activities in equity and fixed income products, including foreign exchange and commodities. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending financing to sales and trading customers. Other activities include Asia wealth management services, investments and research. Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions covering: brokerage and investment advisory services; financial and wealth planning services; stock plan administration services; annuity and insurance products; securities-based lending, residential real estate loans and other lending products; banking; and retirement plan services. Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, liquidity and alternative/other products. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors. Basis of Financial Information The financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, compensation, deferred tax assets, the outcome of legal and tax matters, allowance for credit losses, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. Certain reclassifications have been made to prior periods to conform to the current presentation. The Notes are an integral part of the Firm's financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto. Consolidation The financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 14 ). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as noncontrolling interests. The net income attributable to noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statements. The portion of shareholders’ equity that is attributable to noncontrolling interests for such subsidiaries is presented as noncontrolling interests, a component of Total equity, in the balance sheets. For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the economic residual risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs ( i.e. , entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method of accounting with net gains and losses recorded within Other revenues (see Note 10 ) unless the Firm has elected to measure the investment at fair value, in which case net gains and losses are recorded within Investments revenues (see Note 3 ). Equity and partnership interests held by entities qualifying for accounting purposes as investment companies are carried at fair value. The Firm’s significant regulated U.S. and international subsidiaries include Morgan Stanley & Co. LLC (“MS&Co.”), Morgan Stanley Smith Barney LLC (“MSSB”), Morgan Stanley & Co. International plc (“MSIP”), Morgan Stanley MUFG Securities Co., Ltd. (“MSMS”), Morgan Stanley Bank, N.A. (“MSBNA”) and Morgan Stanley Private Bank, National Association (“MSPBNA”). Consolidated Cash Flow Statements Presentation For purposes of the cash flow statements, cash and cash equivalents consist of Cash and due from banks, Interest bearing deposits with banks and Restricted cash. Cash and cash equivalents includes highly liquid investments with original maturities of three months or less that are held for investment purposes and are readily convertible to known amounts of cash. Restricted cash includes cash in banks subject to withdrawal restrictions, restricted deposits held as compensating balances and cash segregated in compliance with federal or other regulations. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Revenue Recognition Revenues are recognized when the promised goods or services are delivered to our customers, in an amount that is based on the consideration the Firm expects to receive in exchange for those goods or services when such amounts are not probable of significant reversal. These policies reflect the adoption of Revenue from Contracts with Customers on January 1, 2018. Please see “Accounting Updates Adopted” herein for the more significant differences in policies applied in prior periods. Investment Banking Revenues from investment banking activities consist of revenues earned from underwriting, primarily equity and fixed income securities and loan syndications, and advisory fees, primarily for mergers, acquisitions and restructurings. Underwriting revenues are generally recognized on trade date if there is no uncertainty or contingency related to the amount to be paid. Underwriting costs are deferred and recognized in the relevant non-interest expenses line items when the related underwriting revenues are recorded. Advisory fees are recognized as advice is provided to the client, based on the estimated progress of work and when revenues are not probable of a significant reversal. Advisory costs are recognized as incurred in the relevant non-interest expenses line items, including those reimbursed. Commissions and Fees Commission and fee revenues result from transaction-based arrangements in which the client is charged a fee for the execution of transactions. Such revenues primarily arise from transactions in equity securities; services related to sales and trading activities; and sales of mutual funds, alternative funds, futures, insurance products and options. Commission and fee revenues are recognized on trade date when the performance obligation is satisfied. Asset Management Revenues Asset management, distribution and administration fees are generally based on related asset levels being managed, such as the AUM of a customer’s account or the net asset value of a fund. These fees are generally recognized when services are performed and the fees become known. Management fees are reduced by estimated fee waivers and expense caps, if any, provided to the customer. Performance-based fees not in the form of carried interest are recorded when the annual performance target is met and the revenues are not probable of a significant reversal. Sales commissions paid by the Firm in connection with the sale of certain classes of shares of its open-end mutual fund products are accounted for as deferred commission assets and amortized to expense over the expected life of the contract. The Firm periodically tests deferred commission assets for recoverability based on cash flows expected to be received in future periods. Other asset management and distribution costs are recognized as incurred in the relevant non-interest expenses line items. Carried Interest The Firm is entitled to receive performance-based fees in the form of carried interest when the return in certain funds exceeds specified performance targets. When the Firm earns carried interest from funds as specified performance thresholds are met, that carried interest and any related general or limited partner interest is accounted for under the equity method of accounting and measured based on the Firm’s claim on the NAV of the fund at the reporting date, taking into account the distribution terms applicable to the interest held. See Note 21 for information regarding the net cumulative unrealized amount of performance-based fee revenues at risk of reversal. See Note 13 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received. Other Items Revenues from certain commodities-related contracts are recognized as the promised goods or services are delivered to the customer. Receivables from contracts with customers are recognized in Customer and other receivables in the balance sheets when the underlying performance obligations have been satisfied and the Firm has the right per the contract to bill the customer. Contract assets are recognized in Other assets when the Firm has satisfied its performance obligations but customer payment is conditional. Contract liabilities are recognized in Other liabilities when the Firm has collected payment from a customer based on the terms of the contract, but the underlying performance obligations are not yet satisfied. For contracts with a term of less than one year, incremental costs to obtain the contract are expensed as incurred. Revenues are not discounted when payment is expected within one year. The Firm presents, net within revenues, all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Firm from a customer. Fair Value of Financial Instruments Instruments within Trading assets and Trading liabilities are measured at fair value, either as required or allowed by accounting guidance. These financial instruments primarily represent the Firm’s trading and investment positions and include both cash and derivative products. In addition, securities classified as AFS are measured at fair value. Gains and losses on instruments carried at fair value are reflected in Trading revenues, Investments revenues or Investment banking revenues in the income statements, except for AFS securities (see “Investment Securities—AFS and HTM securities” section herein and Note 6 ) and derivatives accounted for as hedges (see “Hedge Accounting” herein and Note 5 ). Interest income and interest expense are recorded within the income statements depending on the nature of the instrument and related market conventions. When interest is included as a component of the instruments’ fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. Dividend income is recorded in Trading revenues or Investments revenues depending on the business activity. The fair value of OTC financial instruments, including derivative contracts related to financial instruments and commodities, is presented in the accompanying balance sheets on a net-by-counterparty basis, when appropriate. Additionally, the Firm nets the fair value of cash collateral paid or received against the fair value amounts recognized for net derivative positions executed with the same counterparty under the same master netting agreement. Fair Value Option The Firm has elected to measure certain eligible instruments at fair value, including Securities purchased under agreements to resell, Loans and lending commitments, equity method investments and certain other assets, Deposits, Securities sold under agreements to repurchase, Other secured financings and Borrowings. Fair Value Measurement—Definition and Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability ( i.e. , the “exit price”) in an orderly transaction between market participants at the measurement date. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, assumptions are set to reflect those that the Firm believes market participants would use in pricing the asset or liability at the measurement date. Where the Firm manages a group of financial assets, financial liabilities, and nonfinancial items accounted for as derivatives on the basis of its net exposure to either market risks or credit risk, the Firm measures the fair value of that group of financial instruments consistently with how market participants would price the net risk exposure at the measurement date. In determining fair value, the Firm uses various valuation approaches and establishes a hierarchy for inputs used in measuring fair value that requires the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability that were developed based on market data obtained from sources independent of the Firm. Unobservable inputs are inputs that reflect assumptions the Firm believes other market participants would use in pricing the asset or liability that are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the observability of inputs as follows, with Level 1 being the highest and Level 3 being the lowest level: Level 1. Valuations based on quoted prices in active markets that the Firm has the ability to access for identical assets or liabilities. Valuation adjustments, block discounts and discounts for entity-specific restrictions that would not transfer to market participants are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2. Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3. Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from product to product and is affected by a wide variety of factors, including the type of product, whether the product is new and not yet established in the marketplace, the liquidity of markets and other characteristics particular to the product. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Firm in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy. The Firm considers prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2 or from Level 2 to Level 3 of the fair value hierarchy. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the total fair value amount is disclosed in the level appropriate for the lowest level input that is significant to the total fair value of the asset or liability. Valuation Techniques Many cash instruments and OTC derivative contracts have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that a party is willing to pay for an asset. Ask prices represent the lowest price that a party is willing to accept for an asset. The Firm carries positions at the point within the bid-ask range that meets its best estimate of fair value. For offsetting positions in the same financial instrument, the same price within the bid-ask spread is used to measure both the long and short positions. Fair value for many cash instruments and OTC derivative contracts is derived using pricing models. Pricing models take into account the contract terms, as well as multiple inputs, including, where applicable, commodity prices, equity prices, interest rate yield curves, credit curves, correlation, creditworthiness of the counterparty, creditworthiness of the Firm, option volatility and currency rates. Where appropriate, valuation adjustments are made to account for various factors such as liquidity risk (bid-ask adjustments), credit quality, model uncertainty and concentration risk and funding. Adjustments for liquidity risk adjust model-derived mid-market amounts of Level 2 and Level 3 financial instruments for the bid-mid or mid-ask spread required to properly reflect the exit price of a risk position. Bid-mid and mid-ask spreads are marked to levels observed in trade activity, broker quotes or other external third-party data. Where these spreads are unobservable for the particular position in question, spreads are derived from observable levels of similar positions. The Firm applies credit-related valuation adjustments to its Borrowings for which the fair value option was elected and to OTC derivatives. The Firm considers the impact of changes in its own credit spreads based upon observations of the secondary bond market spreads when measuring the fair value for Borrowings. For OTC derivatives, the impact of changes in both the Firm’s and the counterparty’s credit rating is considered when measuring fair value. In determining the expected exposure, the Firm simulates the distribution of the future exposure to a counterparty, then applies market-based default probabilities to the future exposure, leveraging external third-party CDS spread data. Where CDS spread data are unavailable for a specific counterparty, bond market spreads, CDS spread data based on the counterparty’s credit rating or CDS spread data that reference a comparable counterparty may be utilized. The Firm also considers collateral held and legally enforceable master netting agreements that mitigate its exposure to each counterparty. Adjustments for model uncertainty are taken for positions whose underlying models are reliant on significant inputs that are neither directly nor indirectly observable, hence requiring reliance on established theoretical concepts in their derivation. These adjustments are derived by making assessments of the possible degree of variability using statistical approaches and market-based information where possible. The Firm may apply concentration adjustments to certain of its OTC derivative portfolios to reflect the additional cost of closing out a particularly large risk exposure. Where possible, these adjustments are based on observable market information, but in many instances, significant judgment is required to estimate the costs of closing out concentrated risk exposures due to the lack of liquidity in the marketplace. The Firm applies an FVA in the fair value measurements of OTC uncollateralized or partially collateralized derivatives and in collateralized derivatives where the terms of the agreement do not permit the reuse of the collateral received. In general, FVA reflects a market funding risk premium inherent in the noted derivative instruments. The methodology for measuring FVA leverages the Firm’s existing credit-related valuation adjustment calculation methodologies, which apply to both assets and liabilities. See Note 3 for a description of valuation techniques applied to the major categories of financial instruments measured at fair value. Assets and Liabilities Measured at Fair Value on a Non-recurring Basis Certain of the Firm’s assets and liabilities are measured at fair value on a non-recurring basis. The Firm incurs losses or gains for any adjustments of these assets or liabilities to fair value. For assets and liabilities measured at fair value on a non-recurring basis, fair value is determined by using various valuation approaches. The same hierarchy for inputs as described above, which requires that observable inputs be used when available, is used in measuring fair value for these items. For further information on financial assets and liabilities that are measured at fair value on a recurring and non-recurring basis, see Note 3 . Offsetting of Derivative Instruments In connection with its derivative activities, the Firm generally enters into master netting agreements and collateral agreements with its counterparties. These agreements provide the Firm with the right, in the event of a default by the counterparty, to net a counterparty’s rights and obligations under the agreement and to liquidate and set off cash collateral against any net amount owed by the counterparty. Derivatives with enforceable master netting agreements are reported net of cash collateral received and posted. However, in certain circumstances, the Firm may not have such an agreement in place; the relevant insolvency regime may not support the enforceability of the master netting agreement or collateral agreement; or the Firm may not have sought legal advice to support the enforceability of the agreement. In cases where the Firm has not determined an agreement to be enforceable, the related amounts are not offset (see Note 5 ). The Firm’s policy is generally to receive securities and cash posted as collateral (with rights of rehypothecation), irrespective of the enforceability determination regarding the master netting and collateral agreement. In certain cases, the Firm may agree for such collateral to be posted to a third-party custodian under a control agreement that enables it to take control of such collateral in the event of a counterparty default. The enforceability of the master netting agreement is taken into account in the Firm’s risk management practices and application of counterparty credit limits. For information related to offsetting of derivatives and certain collateralized transactions, see Notes 5 and 7 , respectively. Hedge Accounting The Firm applies hedge accounting using various derivative financial instruments for the following types of hedges: hedges of changes in the fair value of assets and liabilities due to the risk being hedged (fair value hedges); and hedges of net investments in foreign operations whose functional currency is different from the reporting currency of the Parent Company (net investment hedges). These financial instruments are included within Trading assets—Derivative and other contracts or Trading liabilities—Derivative and other contracts in the balance sheets. For hedges where hedge accounting is being applied, the Firm performs effectiveness testing and other procedures. Fair Value Hedges—Interest Rate Risk The Firm’s designated fair value hedges consist of interest rate swaps designated as hedges of changes in the benchmark interest rate of certain fixed rate AFS securities and senior borrowings. In the fourth quarter of 2019, the Firm also began designating interest rate swaps as fair value hedges of changes in the benchmark interest rate of certain fixed rate deposits. The Firm is permitted to hedge the full, or part of the, contractual term of the hedged instrument. The Firm uses regression analysis to perform an ongoing prospective and retrospective assessment of the effectiveness of these hedging relationships. A hedging relationship is deemed effective if the change in fair value of the hedging instrument (derivative) and the change in fair value of the hedged item (AFS security, deposit liability or borrowing), due to changes in the benchmark interest rate, offset within a range of 80% to 125% . The Firm considers the impact of valuation adjustments related to counterparty credit spreads and its own credit spreads to determine whether they would cause the hedging relationship to be ineffective. For qualifying fair value hedges of benchmark interest rates, the change in the fair value of the derivative, offset by the change in the fair value attributable to the change in the benchmark interest rate risk of the hedged asset (liability), is recognized in earnings each period as a component of Interest income (expense). For AFS securities, the change in fair value of the hedged item due to changes other than the risk being hedged will continue to be reported in OCI. When a derivative is de-designated as a hedge, any basis adjustment remaining on the hedged asset (liability) is amortized to Interest income (expense) over the remaining life of the asset (liability) using the effective interest method. Net Investment Hedges The Firm uses forward foreign exchange contracts to manage a portion of the currency exposure relating to its net investments in foreign operations. To the extent that the notional amounts of the hedging instruments equal the portion of the investments being hedged and the underlying exchange rate of the derivative hedging instrument is the same as the exchange rate between the functional currency of the investee and the intermediate parent entity’s functional currency, it is considered to be perfectly effective, with no income statement recognition. If these exchange rates are not the same, the Firm uses regression analysis to assess the prospective and retrospective effectiveness of the hedge relationships. The gain or loss from revaluing hedges of net investments in foreign operations at the spot rate is reported within AOCI. The forward points on the hedging instruments are excluded from hedge effectiveness testing and changes in the fair value of this excluded component are recorded currently in Interest income. For further information on derivative instruments and hedging activities, see Note 5 . Investment Securities—Available-for-Sale and Held-to-Maturity AFS securities are reported at fair value in the balance sheets with unrealized gains and losses reported in AOCI, net of tax, unless such securities are designated in a fair value hedge. Interest income, including amortization of premiums and accretion of discounts, is included in Interest income in the income statements. Realized gains and losses on sales of AFS securities are classified within Other revenues in the income statements (see Note 6 ). The Firm utilizes the “first-in, first-out” method as the basis for determining the cost of AFS securities. HTM securities are reported at amortized cost in the balance sheets. Interest income, including amortization of premiums and accretion of discounts on HTM securities, is included in Interest income in the income statements. OTTI AFS securities and HTM securities with a current fair value less than their amortized cost are analyzed as part of the Firm’s periodic assessment of temporary versus OTTI at the individual security level. A temporary impairment is recognized in AOCI for AFS securities. OTTI is recognized in the income statements with the exception of the non-credit portion related to a security that the Firm does not intend to sell and is not likely to be required to sell, which is recognized in AOCI. For AFS securities that the Firm either has the intent to sell or that the Firm is likely to be required to sell before recovery of its amortized cost basis, the impairment is considered OTTI. For those AFS securities that the Firm does not have the intent to sell or is not likely to be required to sell, and for all HTM securities, the Firm evaluates whether it expects to recover the entire amortized cost basis of the security. If the Firm does not expect to recover the entire amortized cost of those AFS or HTM securities, the impairment is considered OTTI, and the Firm determines what portion of the impairment relates to a credit loss and what portion relates to non-credit factors. A credit loss exists if the present value of cash flows expected to be collected (discounted at the implicit interest rate at acquisition of the security or discounted at the effective yield for securities that incorporate changes in prepayment assumptions) is less than the amortized cost basis of the security. Changes in prepayment assumptions alone are not considered to result in a credit loss. When determining if a credit loss exists, the Firm considers relevant information, including: • the length of time and the extent to which the fair value has been less than the amortized cost basis; • adverse conditions specifically related to the security, its industry or geographic area; • changes in the financial condition of the issuer of the security, the presence of explicit or implicit guarantees of repayment by the U.S. Government for U.S. Government and Agency securities or, in the case of an asset-backed debt security, changes in the financial condition of the underlying loan obligors; • the historical and implied volatility of the fair value of the security; • the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future; • failure of the issuer of the security to make scheduled interest or principal payments; • the current rating and any changes to the rating of the security by a rating agency; • recoveries or additional declines in fair value after the balance sheet date. When estimating the present value of expected cash flows, information utilized includes the remaining payment terms of the security, prepayment speeds, financial condition of the issuer(s), expected defaults and the value of any underlying collateral. Loans The Firm accounts for loans based on the following categories: loans held for investment; loans held for sale; and loans at fair value. Loans Held for Investment Loans held for investment are reported at outstanding principal adjusted for any charge-offs, the allowance for loan losses, any unamortized deferred fees or costs for originated loans, and any unamortized premiums or discounts for purchased loans. Interest Income. Interest income on performing loans held for investment is accrued and recognized as interest income at the contractual rate of interest. Purchase price discounts or premiums, as well as net deferred loan fees or costs, are amortized into interest income over the life of the loan to produce a level rate of return. Allowance for Loan Losses. The allowance for loan losses represents an estimate of probable losses related to loans specifically identified for impairment in addition to the probable losses inherent in the held-for-investment loan portfolio. The Firm utilizes the U.S. banking agencies’ definition of criticized exposures, which consist of the Special Mention, Substandard, Doubtful and Loss categories as credit quality indicators. For further information on the credit quality indicators, see Note 8 . Substandard loans are regularly reviewed for impairment. Factors considered by management when determining impairment include payment status, fair value of collateral, and probability of collecting scheduled principal and interest payments when due. The impairment analysis required depends on the nature and type of loans. Loans classified as Doubtful or Loss are considered impaired. There are two components of the allowance for loan losses: the specific allowance component and the inherent allowance component. The specific allowance component of the allowance for loan losses is used to estimate probable losses for exposures that have been specifically identified for impairment analysis by the Firm and determined to be impaired. When a loan is specifically identified for impairment, the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the observable market price of the loan or the fair value of the collateral if the loan is collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the sale or operation of the underlying collateral. If the present value of the expected future cash flows (or alternatively, the observable market price of the loan or the fair value of the collateral) is less than the recorded investment in the loan, then the Firm recognizes an allowance and a charge to the provision for loan losses within Other revenues. The inherent allowance component of the allowance for loan losses represents an estimate of the probable losses inherent in the loan portfolio and includes loans that have not been identified as impaired. The Firm maintains methodologies by loan product for calculating an allowance for loan losses that estimates the inherent losses in the loan portfolio. Generally, inherent losses in the portfolio for non-impaired loans are estimated using statistical analysis and judgment regarding the exposure at default, the probability of default and the loss given default. Qualitative and environmental factors such as economic and business conditions, nature and volume of the portfolio, and lending terms and volume and severity of past due loans may also be considered in the calculations. The allowance for loan losses is maintained at a level to ensure that it is reasonably likely to adequately absorb the estimated probable losses inherent in the portfolio. When the Firm recognizes an allowance, there is also a charge to the provision for loan losses within Other revenues. Troubled Debt Restructurings. The Firm may modify the terms of certain loans for economic or legal reasons related to a borrower’s financial difficulties by granting one or more concessions that the Firm would not otherwise consider. Such modifications are accounted for and reported as a TDR. A loan that has been modified in a TDR is generally considered to be impaired and is evaluated for the extent of impairment using the Firm’s specific allowance methodology. TDRs are also generally classified as nonaccrual and may be returned to accrual status only after considering the borrower’s sustained repayment performance for a reasonable period. Nonaccrual Loans. The Firm places loans on nonaccrual status if principal or interest is past due for a period of 90 days or more or payment of principal or interest is in doubt unless the obligation is well-secured and in the process of collection. A loan is considered past due when a payment due according to the contractual terms of the loan agreement has not been remitted by the borrower. Substandard loans, if identified as impaired, are categorized as nonaccrual, as are loans classified as Doubtful or Loss. Payments received on nonaccrual loans held for investment are applied to principal if there is doubt regarding the ultimate collectibility of principal. If collection of the principal of nonaccrual loans held for investment is not in doubt, interest income is realized on a cash basis. If neither principal nor interest collection is in doubt, loans are placed on accrual status and interest income is recognized using the effective interest method. Loans that are on nonaccrual status may not be restored to accrual status until all delinquent principal and/or interest has been brought current after a reasonable period of performance, typically a minimum of six months. Charge-offs. The Firm charges off a loan in the period that it is deemed uncollectible and records a reduction in the allowance for loan losses and the balance of the loan. In general, any portion of the recorded investment in a collateral dependent loan (including any capitalized accrued interest, net deferred loan fees or costs, and unamortized premium or discount) in excess of the fair value of the collateral that can be identified as uncollectible, and is therefore deemed a confirmed loss, is charged off against the allowance for loan losses. In addition, for loan transfers from loans held for investment to loans held for sale, at the time of transfer any reduction in the loan value is reflected as a charge-off of the recorded investment, resulting in a new cost basis. Lending Commitments. The Firm records the liability and related expense for the credit exposure related to commitments to fund loans that will be held for investment in a manner similar to outstanding loans discussed above. The analysis also incorporates a credit conversion factor, which is the expected utilization of the undrawn commitment. The liability and expense for the credit exposure are recorded in Other liabilities and accrued expenses in the balance sheets, and Other non-interest expenses in the income statements, respectively. For more information regarding loan commitments, standby letters of credit and financial guarantees, see Note 13 . Loans Held for Sale Loans held for sale are measured at the lower of cost or fair value, with valuation changes recorded in Other revenues. The Firm determines the valuation allowance on an individual loan basis, except for residential mortgage loans for which the valuation allowance is determined at the loan product level. Any decreases in fair value below the initial carrying amount and any recoveries in fair value up to the initial carrying amount are recorded in Other revenues. Increases in fair value above initial carrying value are not recognized. Interest income on loans held for sale is accrued and recognized based on the contractual rate of interest. Loan origination fees or costs and purchase price discounts or premiums are deferred as an adjustment to the loan’s cost basis until the rel |
Fair Values
Fair Values | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Values | Fair Values Recurring Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis At December 31, 2019 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at fair value Trading assets: U.S. Treasury and agency securities $ 36,866 $ 28,992 $ 22 $ — $ 65,880 Other sovereign government obligations 23,402 4,347 5 — 27,754 State and municipal securities — 2,790 1 — 2,791 MABS — 1,690 438 — 2,128 Loans and lending commitments 2 — 6,253 5,073 — 11,326 Corporate and other debt — 22,124 1,396 — 23,520 Corporate equities 3 123,942 652 97 — 124,691 Derivative and other contracts: Interest rate 1,265 182,977 1,239 — 185,481 Credit — 6,658 654 — 7,312 Foreign exchange 15 64,260 145 — 64,420 Equity 1,219 48,927 922 — 51,068 Commodity and other 1,079 7,255 2,924 — 11,258 Netting 1 (2,794 ) (235,947 ) (993 ) (47,804 ) (287,538 ) Total derivative and other contracts 784 74,130 4,891 (47,804 ) 32,001 Investments 4 481 252 858 — 1,591 Physical commodities — 1,907 — — 1,907 Total trading assets 4 185,475 143,137 12,781 (47,804 ) 293,589 Investment securities —AFS 32,902 29,321 — — 62,223 Securities purchased under agreements to resell — 4 — — 4 Total assets at fair value $ 218,377 $ 172,462 $ 12,781 $ (47,804 ) $ 355,816 At December 31, 2019 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at fair value Deposits $ — $ 1,920 $ 179 $ — $ 2,099 Trading liabilities: U.S. Treasury and agency securities 11,191 34 — — 11,225 Other sovereign government obligations 21,837 1,332 1 — 23,170 Corporate and other debt — 7,410 — — 7,410 Corporate equities 3 63,002 79 36 — 63,117 Derivative and other contracts: Interest rate 1,144 171,025 462 — 172,631 Credit — 7,391 530 — 7,921 Foreign exchange 6 67,473 176 — 67,655 Equity 1,200 49,062 2,606 — 52,868 Commodity and other 1,194 7,118 1,312 — 9,624 Netting 1 (2,794 ) (235,947 ) (993 ) (42,531 ) (282,265 ) Total derivative and other contracts 750 66,122 4,093 (42,531 ) 28,434 Total trading liabilities 96,780 74,977 4,130 (42,531 ) 133,356 Securities sold under agreements to repurchase — 733 — — 733 Other secured financings — 7,700 109 — 7,809 Borrowings — 60,373 4,088 — 64,461 Total liabilities at fair value $ 96,780 $ 145,703 $ 8,506 $ (42,531 ) $ 208,458 At December 31, 2018 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at fair value Trading assets: U.S. Treasury and agency securities $ 38,767 $ 29,594 $ 54 $ — $ 68,415 Other sovereign government obligations 28,395 5,529 17 — 33,941 State and municipal securities — 3,161 148 — 3,309 MABS — 2,154 354 — 2,508 Loans and lending commitments 2 — 4,055 6,870 — 10,925 Corporate and other debt — 18,129 1,076 — 19,205 Corporate equities 3 93,626 522 95 — 94,243 Derivative and other contracts: Interest rate 2,793 155,027 1,045 — 158,865 Credit — 5,707 421 — 6,128 Foreign exchange 62 63,023 161 — 63,246 Equity 1,256 45,596 1,022 — 47,874 Commodity and other 963 8,517 2,992 — 12,472 Netting 1 (4,151 ) (210,190 ) (896 ) (44,175 ) (259,412 ) Total derivative and other contracts 923 67,680 4,745 (44,175 ) 29,173 Investments 4 412 293 757 — 1,462 Physical commodities — 536 — — 536 Total trading assets 4 162,123 131,653 14,116 (44,175 ) 263,717 Investment securities —AFS 36,399 24,662 — — 61,061 Intangible assets — 5 — — 5 Total assets at fair value $ 198,522 $ 156,320 $ 14,116 $ (44,175 ) $ 324,783 At December 31, 2018 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at fair value Deposits $ — $ 415 $ 27 $ — $ 442 Trading liabilities: U.S. Treasury and agency securities 11,272 543 — — 11,815 Other sovereign government obligations 21,391 1,454 — — 22,845 Corporate and other debt — 8,550 1 — 8,551 Corporate equities 3 56,064 199 15 — 56,278 Derivative and other contracts: Interest rate 2,927 142,746 427 — 146,100 Credit — 5,772 381 — 6,153 Foreign exchange 41 63,379 86 — 63,506 Equity 1,042 47,091 2,507 — 50,640 Commodity and other 1,228 6,872 940 — 9,040 Netting 1 (4,151 ) (210,190 ) (896 ) (32,944 ) (248,181 ) Total derivative and other contracts 1,087 55,670 3,445 (32,944 ) 27,258 Total trading liabilities 89,814 66,416 3,461 (32,944 ) 126,747 Securities sold under agreements to repurchase — 812 — — 812 Other secured financings — 5,037 208 — 5,245 Borrowings — 47,378 3,806 — 51,184 Total liabilities at fair value $ 89,814 $ 120,058 $ 7,502 $ (32,944 ) $ 184,430 MABS—Mortgage- and asset-backed securities 1. For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Netting.” Positions classified within the same level that are with the same counterparty are netted within that level. For further information on derivative instruments and hedging activities, see Note 5 . 2. For a further breakdown by type, see the following Detail of Loans and Lending Commitments at Fair Value table. 3. For trading purposes, the Firm holds or sells short equity securities issued by entities in diverse industries and of varying sizes. 4. Amounts exclude certain investments that are measured based on NAV per share, which are not classified in the fair value hierarchy. For additional disclosure about such investments, see “Net Asset Value Measurements” herein. Detail of Loans and Lending Commitments at Fair Value $ in millions At At Corporate $ 8,036 $ 9,171 Residential real estate 1,192 1,153 Commercial real estate 2,098 601 Total $ 11,326 $ 10,925 Unsettled Fair Value of Futures Contracts 1 $ in millions At At Customer and other receivables, net $ 365 $ 615 1. These contracts are primarily Level 1, actively traded, valued based on quoted prices from the exchange and are excluded from the previous recurring fair value tables. Valuation Techniques for Assets and Liabilities Measured at Fair Value on a Recurring Basis Asset and Liability/Valuation Technique Valuation Hierarchy Classification U.S. Treasury and Agency Securities U.S. Treasury Securities • Level 1 • Fair value is determined using quoted market prices. U.S. Agency Securities • Level 1 - on-the-run agency issued debt securities if actively traded and inputs are observable • Generally Level 2 - all other agency issued debt securities, agency mortgage pass-through pool securities and CMOs if actively traded and inputs are observable • Level 3 - in instances where the trading activity is limited or inputs are unobservable • Non-callable agency-issued debt securities are generally valued using quoted market prices, and callable agency-issued debt securities are valued by benchmarking model-derived prices to quoted market prices and trade data for comparable instruments. • The fair value of agency mortgage pass-through pool securities is model-driven based on spreads of comparable to-be-announced securities. • CMOs are generally valued using quoted market prices and trade data adjusted by subsequent changes in related indices for comparable instruments. Other Sovereign Government Obligations • Generally Level 1 • Level 2 - if the market is less active or prices are dispersed • Level 3 - in instances where the prices are unobservable • Fair value is determined using quoted prices in active markets when available. When not available, quoted prices in less-active markets are used. In the absence of position-specific quoted prices, fair value may be determined through benchmarking from comparable instruments. State and Municipal Securities • Generally Level 2 - if value based on observable market data for comparable instruments • Level 3 in instances where market data is not observable • Fair value is determined using recently executed transactions, market price quotations or pricing models that factor in, where applicable, interest rates, bond or CDS spreads, adjusted for any basis difference between cash and derivative instruments. RMBS, CMBS, ABS (collectively known as Mortgage- and Asset-backed securities (“MABS”)) • Generally Level 2 - if value based on observable market data for comparable instruments • Level 3 - if external prices or significant spread inputs are unobservable, or if the comparability assessment involves significant subjectivity related to property type differences, cash flows, performance or other inputs • Mortgage- and asset-backed securities may be valued based on price or spread data obtained from observed transactions or independent external parties such as vendors or brokers. • When position-specific external price data are not observable, the fair value determination may require benchmarking to comparable instruments, and/or analyzing expected credit losses, default and recovery rates, and/or applying discounted cash flow techniques. When evaluating the comparable instruments for use in the valuation of each security, security collateral-specific attributes, including payment priority, credit enhancement levels, type of collateral, delinquency rates and loss severity, are considered. In addition, for RMBS borrowers, FICO scores and the level of documentation for the loan are considered. • Market standard cash flow models may be utilized to model the specific collateral composition and cash flow structure of each transaction. Key inputs to these models are market spreads, forecasted credit losses, and default and prepayment rates for each asset category. • Valuation levels of RMBS and CMBS indices are used as an additional data point for benchmarking purposes or to price outright index positions. Loans and Lending Commitments • Level 2 - if value based on observable market data for comparable instruments • Level 3 - in instances where prices or significant spread inputs are unobservable • Fair value of corporate loans is determined using recently executed transactions, market price quotations (where observable), implied yields from comparable debt, market observable CDS spread levels obtained from independent external parties adjusted for any basis difference between cash and derivative instruments, along with proprietary valuation models and default recovery analysis where such transactions and quotations are unobservable. • Fair value of contingent corporate lending commitments is determined by using executed transactions on comparable loans and the anticipated market price based on pricing indications from syndicate banks and customers. The valuation of loans and lending commitments also takes into account fee income that is considered an attribute of the contract. • Fair value of mortgage loans is determined using observable prices based on transactional data or third-party pricing for comparable instruments, when available. • Where position-specific external prices are not observable, fair value is estimated based on benchmarking to prices and rates observed in the primary market for similar loan or borrower types or based on the present value of expected future cash flows using the Firm’s best available estimates of the key assumptions, including forecasted credit losses, prepayment rates, forward yield curves and discount rates commensurate with the risks involved or a methodology that utilizes the capital structure and credit spreads of recent comparable securitization transactions. • Fair value of equity margin loans is determined by discounting future interest cash flows, net of estimated credit losses. The estimated credit losses are derived by benchmarking to market observable CDS spreads, implied debt yields or volatility metrics of the loan collateral. Corporate and Other Debt Corporate Bonds • Generally Level 2 - if value based on observable market data for comparable instruments • Level 3 - in instances where prices or significant spread inputs are unobservable • Fair value is determined using recently executed transactions, market price quotations, bond spreads and CDS spreads obtained from independent external parties, such as vendors and brokers, adjusted for any basis difference between cash and derivative instruments. • The spread data used are for the same maturity as the bond. If the spread data do not reference the issuer, then data that reference comparable issuers are used. When position-specific external price data are not observable, fair value is determined based on either benchmarking to comparable instruments or cash flow models with yield curves, bond or single-name CDS spreads and recovery rates as significant inputs. Asset and Liability/Valuation Technique Valuation Hierarchy Classification CDO • Level 2 - when either comparable market transactions are observable, or credit correlation input is insignificant • Level 3 - when either comparable market transactions are unobservable, or the credit correlation input is significant • The Firm holds cash CDOs that typically reference a tranche of an underlying synthetic portfolio of single-name CDS spreads collateralized by corporate bonds (CLN) or cash portfolio of ABS/loans (“asset-backed CDOs”). • Credit correlation, a primary input used to determine the fair value of CLNs, is usually unobservable and derived using a benchmarking technique. Other model inputs such as credit spreads, including collateral spreads, and interest rates are typically observable. • Asset-backed CDOs are valued based on an evaluation of the market and model input parameters sourced from comparable instruments as indicated by market activity. Each asset-backed CDO position is evaluated independently taking into consideration available comparable market levels, underlying collateral performance and pricing, deal structures and liquidity. Corporate Equities • Generally Level 1 - exchange-traded securities and fund units if actively traded • Level 2 - exchange-traded securities if not actively traded, or if undergoing a recent M&A event or corporate action • Level 3 - exchange-traded securities if not actively traded, or if undergoing an aged M&A event or corporate action • Exchange-traded equity securities are generally valued based on quoted prices from the exchange. To the extent these securities are actively traded, valuation adjustments are not applied. • Unlisted equity securities are generally valued based on an assessment of each security, considering rounds of financing and third-party transactions, discounted cash flow analyses and market-based information, including comparable transactions, trading multiples and changes in market outlook, among other factors. • Listed fund units are generally marked to the exchange-traded price if actively traded, or NAV if not. Unlisted fund units are generally marked to NAV. Derivative and Other Contracts Listed Derivative Contracts • Level 1 - listed derivatives that are actively traded • Level 2 - listed derivatives that are not actively traded • Listed derivatives that are actively traded are valued based on quoted prices from the exchange. • Listed derivatives that are not actively traded are valued using the same techniques as those applied to OTC derivatives as noted below. OTC Derivative Contracts • Generally Level 2 - OTC derivative products valued using observable inputs, or where the unobservable input is not deemed significant • Level 3 - OTC derivative products for which the unobservable input is deemed significant • OTC derivative contracts include forward, swap and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices or commodity prices. • Depending on the product and the terms of the transaction, the fair value of OTC derivative products can be modeled using a series of techniques, including closed-form analytic formulas, such as the Black-Scholes option-pricing model, simulation models or a combination thereof. Many pricing models do not entail material subjectivity as the methodologies employed do not necessitate significant judgment since model inputs may be observed from actively quoted markets, as is the case for generic interest rate swaps, many equity, commodity and foreign currency option contracts, and certain CDS. In the case of more established derivative products, the pricing models used by the Firm are widely accepted by the financial services industry. • More complex OTC derivative products are typically less liquid and require more judgment in the implementation of the valuation technique since direct trading activity or quotes are unobservable. This includes certain types of interest rate derivatives with both volatility and correlation exposure, equity, commodity or foreign currency derivatives that are either longer-dated or include exposure to multiple underlyings, and credit derivatives, including CDS on certain mortgage- or asset-backed securities and basket CDS. Where required inputs are unobservable, relationships to observable data points, based on historical and/or implied observations, may be employed as a technique to estimate the model input values. For further information on the valuation techniques for OTC derivative products, see Note 2. Investments • Level 1 - exchange-traded direct equity investments in an active market • Level 2 - non-exchange-traded direct equity investments and investments in various investment management funds if valued based on rounds of financing or third-party transactions; exchange-traded direct equity investments if not actively traded • Level 3 - non-exchange-traded direct equity investments and investments in various investment management funds where rounds of financing or third-party transactions are not available • Investments include direct investments in equity securities, as well as various investment management funds, which include investments made in connection with certain employee deferred compensation plans. • Exchange-traded direct equity investments are generally valued based on quoted prices from the exchange. • For direct investments, initially, the transaction price is generally considered by the Firm as the exit price and is its best estimate of fair value. • After initial recognition, in determining the fair value of non-exchange-traded internally and externally managed funds, the Firm generally considers the NAV of the fund provided by the fund manager to be the best estimate of fair value. These investments are included in the Fund Interests table in the "Net Asset Value Measurements" section herein. • For non-exchange-traded investments either held directly or held within internally managed funds, fair value after initial recognition is based on an assessment of each underlying investment, considering rounds of financing and third-party transactions, discounted cash flow analyses and market-based information, including comparable Firm transactions, trading multiples and changes in market outlook, among other factors. Physical Commodities • Level 2 • The Firm trades various physical commodities, including natural gas and precious metals. • Fair value is determined using observable inputs, including broker quotations and published indices. Asset and Liability/Valuation Technique Valuation Hierarchy Classification Investment Securities—AFS Securities • For further information on the determination of valuation hierarchy classification, see the corresponding Valuation Hierarchy Classification described herein. • AFS securities are composed of U.S. government and agency securities ( e.g., U.S. Treasury securities, agency-issued debt, agency mortgage pass-through securities and CMOs), CMBS, ABS, state and municipal securities, and corporate bonds. For further information on the determination of fair value, refer to the corresponding asset/liability Valuation Technique described herein for the same instruments. Deposits • Generally Level 2 • Level 3 - in instances where the unobservable input is deemed significant Certificates of Deposit • The Firm issues FDIC-insured certificates of deposit that pay either fixed coupons or that have repayment terms linked to the performance of debt or equity securities, indices or currencies. The fair value of these certificates of deposit is determined using valuation models that incorporate observable inputs referencing identical or comparable securities, including prices to which the deposits are linked, interest rate yield curves, option volatility and currency rates, equity prices, and the impact of the Firm’s own credit spreads, adjusted for the impact of the FDIC insurance, which is based on vanilla deposit issuance rates. Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase • Generally Level 2 • Fair value is computed using a standard cash flow discounting methodology. • The inputs to the valuation include contractual cash flows and collateral funding spreads, which are the incremental spread over the OIS rate for a specific collateral rate (which refers to the rate applicable to a specific type of security pledged as collateral). Other Secured Financings • For further information on the determination of valuation hierarchy classification, see the corresponding Valuation Hierarchy Classification described herein. • Other secured financings are composed of short-dated notes secured by Corporate equities, agreements to repurchase Physical commodities, the liabilities related to sales of Loans and lending commitments accounted for as financings, and contracts which are not classified as OTC derivatives because they fail net investment criteria. For further information on the determination of valuation hierarchy classification, see the corresponding Valuation Hierarchy Classification described herein. Borrowings • Generally Level 2 • Level 3 - in instances where the unobservable inputs are deemed significant • The Firm carries certain borrowings at fair value which are primarily composed of: instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures; and instruments with various interest-rate-related features including step-ups, step-downs, and zero coupons. • Fair value is determined using valuation models for the derivative and debt portions of the instruments. These models incorporate observable inputs referencing identical or comparable securities, including prices to which the instruments are linked, interest rate yield curves, option volatility and currency rates, and commodity or equity prices. • Independent, external and traded prices are considered as well as the impact of the Firm’s own credit spreads which are based on observed secondary bond market spreads. Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis $ in millions 2019 2018 2017 U.S. Treasury and agency securities Beginning balance $ 54 $ — $ 74 Realized and unrealized gains (losses) 4 1 (1 ) Purchases 17 53 — Sales (54 ) — (240 ) Net transfers 1 — 167 Ending balance $ 22 $ 54 $ — Unrealized gains (losses) $ 4 $ 1 $ — Other sovereign government obligations Beginning balance $ 17 $ 1 $ 6 Realized and unrealized gains (losses) (3 ) — — Purchases 7 41 — Sales (6 ) (26 ) (5 ) Net transfers (10 ) 1 — Ending balance $ 5 $ 17 $ 1 Unrealized gains (losses) $ (3 ) $ — $ — State and municipal securities Beginning balance $ 148 $ 8 $ 250 Realized and unrealized gains (losses) — — 3 Purchases — 147 6 Sales (147 ) (9 ) (83 ) Net transfers — 2 (168 ) Ending balance $ 1 $ 148 $ 8 Unrealized gains (losses) $ — $ — $ — MABS Beginning balance $ 354 $ 423 $ 217 Realized and unrealized gains (losses) (16 ) 82 47 Purchases 132 177 289 Sales (175 ) (338 ) (158 ) Settlements (44 ) (17 ) (37 ) Net transfers 187 27 65 Ending balance $ 438 $ 354 $ 423 Unrealized gains (losses) $ (57 ) $ (9 ) $ (7 ) Loans and lending commitments Beginning balance $ 6,870 $ 5,945 $ 5,122 Realized and unrealized gains (losses) 38 (100 ) 182 Purchases 2,337 5,746 3,616 Sales (1,268 ) (2,529 ) (1,561 ) Settlements (2,291 ) (2,281 ) (1,463 ) Net transfers (613 ) 89 49 Ending balance $ 5,073 $ 6,870 $ 5,945 Unrealized gains (losses) $ (9 ) $ (137 ) $ 131 Corporate and other debt Beginning balance $ 1,076 $ 701 $ 475 Realized and unrealized gains (losses) 418 106 82 Purchases 650 734 487 Sales (729 ) (251 ) (420 ) Settlements (7 ) (11 ) (9 ) Net transfers (12 ) (203 ) 86 Ending balance $ 1,396 $ 1,076 $ 701 Unrealized gains (losses) $ 361 $ 70 $ 23 $ in millions 2019 2018 2017 Corporate equities Beginning balance $ 95 $ 166 $ 446 Realized and unrealized gains (losses) (8 ) 29 (54 ) Purchases 32 13 173 Sales (271 ) (161 ) (632 ) Net transfers 249 48 233 Ending balance $ 97 $ 95 $ 166 Unrealized gains (losses) $ 1 $ 17 $ (6 ) Investments Beginning balance $ 757 $ 1,020 $ 958 Realized and unrealized gains (losses) 78 (25 ) 96 Purchases 40 149 102 Sales (41 ) (212 ) (57 ) Settlements — — (78 ) Net transfers 24 (175 ) (1 ) Ending balance $ 858 $ 757 $ 1,020 Unrealized gains (losses) $ 67 $ (27 ) $ 88 Net derivatives: Interest rate Beginning balance $ 618 $ 1,218 $ 420 Realized and unrealized gains (losses) 17 111 322 Purchases 98 63 29 Issuances (16 ) (19 ) (18 ) Settlements 1 (172 ) 608 Net transfers 59 (583 ) (143 ) Ending balance $ 777 $ 618 $ 1,218 Unrealized gains (losses) $ 87 $ 140 $ 341 Net derivatives: Credit Beginning balance $ 40 $ 41 $ (373 ) Realized and unrealized gains (losses) (24 ) 33 (43 ) Purchases 144 13 — Issuances (190 ) (95 ) (1 ) Settlements 111 56 455 Net transfers 43 (8 ) 3 Ending balance $ 124 $ 40 $ 41 Unrealized gains (losses) $ (17 ) $ 23 $ (18 ) Net derivatives: Foreign exchange Beginning balance $ 75 $ (112 ) $ (43 ) Realized and unrealized gains (losses) (295 ) 179 (108 ) Purchases 2 3 — Issuances — (1 ) (1 ) Settlements 7 2 31 Net transfers 180 4 9 Ending balance $ (31 ) $ 75 $ (112 ) Unrealized gains (losses) $ (187 ) $ 118 $ (89 ) Net derivatives: Equity Beginning balance $ (1,485 ) $ 1,208 $ 184 Realized and unrealized gains (losses) (260 ) 305 136 Purchases 155 122 988 Issuances (643 ) (1,179 ) (524 ) Settlements 242 314 396 Net transfers 1 307 (2,255 ) 28 Ending balance $ (1,684 ) $ (1,485 ) $ 1,208 Unrealized gains (losses) $ (194 ) $ 211 $ 159 $ in millions 2019 2018 2017 Net derivatives: Commodity and other Beginning balance $ 2,052 $ 1,446 $ 1,600 Realized and unrealized gains (losses) 73 500 515 Purchases 152 34 24 Issuances (92 ) (18 ) (57 ) Settlements (611 ) (81 ) (343 ) Net transfers 38 171 (293 ) Ending balance $ 1,612 $ 2,052 $ 1,446 Unrealized gains (losses) $ (113 ) $ 272 $ 20 Deposits Beginning balance $ 27 $ 47 $ 42 Realized and unrealized losses (gains) 20 (1 ) 3 Issuances 101 9 12 Settlements (15 ) (2 ) (3 ) Net transfers 46 (26 ) (7 ) Ending balance $ 179 $ 27 $ 47 Unrealized losses (gains) $ 20 $ (1 ) $ 3 Nonderivative trading liabilities Beginning balance $ 16 $ 25 $ 71 Realized and unrealized losses (gains) (21 ) (6 ) (1 ) Purchases (65 ) (18 ) (139 ) Sales 38 9 20 Net transfers 69 6 74 Ending balance $ 37 $ 16 $ 25 Unrealized losses (gains) $ (21 ) $ (7 ) $ — Securities sold under agreements to repurchase Beginning balance $ — $ 150 $ 149 Issuances — — 1 Net transfers — (150 ) — Ending balance $ — $ — $ 150 Unrealized losses (gains) $ — $ — $ — Other secured financings Beginning balance $ 208 $ 239 $ 434 Realized and unrealized losses (gains) 5 (39 ) 35 Issuances — 8 64 Settlements (8 ) (17 ) (251 ) Net transfers (96 ) 17 (43 ) Ending balance $ 109 $ 208 $ 239 Unrealized losses (gains) $ 5 $ (39 ) $ 28 Borrowings Beginning balance $ 3,806 $ 2,984 $ 2,014 Realized and unrealized losses (gains) 728 (385 ) 196 Issuances 1,181 1,554 1,968 Settlements (950 ) (274 ) (424 ) Net transfers (677 ) (73 ) (770 ) Ending balance $ 4,088 $ 3,806 $ 2,984 Unrealized losses (gains) $ 600 $ (379 ) $ 173 Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA 182 (184 ) 76 1. During 2018, the Firm transferred from Level 3 to Level 2 $2.4 billion of Equity Derivatives due to a reduction in the significance of the unobservable inputs relating to volatility. Level 3 instruments may be hedged with instruments classified in Level 1 and Level 2. The realized and unrealized gains (losses) for assets and liabilities within the Level 3 category presented in the previous tables do not reflect the related realized and unrealized gains (losses) on hedging instruments that have been classified by the Firm within the Level 1 and/or Level 2 categories. The unrealized gains (losses) during the period for assets and liabilities within the Level 3 category may include changes in fair value during the period that were attributable to both observable and unobservable inputs. Total realized and unrealized gains (losses) are primarily included in Trading revenues in the income statements. Additionally, in the previous tables, consolidations of VIEs are included in Purchases and deconsolidations of VIEs are included in Settlements. Significant Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Valuation Techniques and Unobservable Inputs Balance / Range (Average 1 ) $ in millions,except inputs At December 31, 2019 At December 31, 2018 Assets at Fair Value on a Recurring Basis U.S. Treasury and agency securities $ 22 $ 54 Comparable pricing: Bond price N/M 100 to 104 points State and municipal securities $ 1 $ 148 Comparable pricing: Bond price N/M 94 to 100 points (96 points) MABS $ 438 $ 354 Comparable pricing: Bond price 0 to 96 points (47 points) 0 to 97 points (38 points) Loans and lending commitments $ 5,073 $ 6,870 Margin loan model: Discount rate 1% to 9% (2%) 1% to 7% (2%) Volatility skew 15% to 80% (28%) 19% to 56% (28%) Credit Spread 9 to 39 bps (19 bps) 14 to 90 bps (36 bps) Comparable pricing: Loan price 69 to 100 points (93 points) 60 to 101 points (95 points) Corporate and other debt $ 1,396 $ 1,076 Comparable pricing: Bond price 11 to 108 points (84 points) 12 to 100 points (72 points) Discounted cash flow: Recovery rate 35 % 20 % Discount rate N/M 15% to 21% (16%) Option model: At the money volatility 21 % 24% to 78% (50%) Balance / Range (Average 1 ) $ in millions,except inputs At December 31, 2019 At December 31, 2018 Corporate equities $ 97 $ 95 Comparable pricing: Equity price 100 % 100 % Investments $ 858 $ 757 Discounted cash flow: WACC 8% to 17% (15%) 9% to 15% (10%) Exit multiple 7 to 16 times (11 times) 7 to 10 times (10 times) Market approach: EBITDA multiple 7 to 24 times (11 times) 6 to 24 times (12 times) Comparable pricing: Equity price 75% to 100% (99%) 75% to 100% (96%) Net derivative and other contracts: Interest rate $ 777 $ 618 Option model: IR volatility skew 24% to 156% (63% / 59%) 22% to 95% (48% / 51%) IR curve correlation 47% to 90% (72% / 72%) N/M Bond volatility 4% to 15% (13% / 14%) N/M Inflation volatility 24% to 63% (44% / 41%) 23% to 65% (44% / 40%) IR curve 1 % 1 % Credit $ 124 $ 40 Credit default swap model: Cash-synthetic 6 points 8 to 9 points (9 points) Bond price 0 to 104 points (45 points) 0 to 75 points (26 points) Credit spread 9 to 469 bps (81 bps) 246 to 499 bps (380 bps) Funding spread 47 to 117 bps (84 bps) 47 to 98 bps (93 bps) Correlation model: Credit correlation 29% to 62% (36%) 36% to 69% (44%) Foreign exchange 2 $ (31 ) $ 75 Option model: IR - FX correlation 32% to 56% (46% / 46%) 53% to 56% (55% / 55%) IR volatility skew 24% to 156% (63% / 59%) 22% to 95% (48% / 51%) IR curve 10% to 11% (10% / 10%) N/M Contingency 85% to 95% (94% / 95%) 90% to 95% (93% / 95%) Equity 2 $ (1,684 ) $ (1,485 ) Option model: At the money 9% to 90% (36%) 17% to 63% (38%) Volatility skew -2% to 0% (-1%) -2% to 0% (-1%) Equity correlation 5% to 98% (70%) 5% to 96% (71%) FX correlation -79% to 60% (-37%) -60% to 55% (-26%) IR correlation -11% to 44% (18% / 16%) -7% to 45% (15% / 12%) Commodity and other $ 1,612 $ 2,052 Option model: Forward power $3 to $182 ($28) per MWh $3 to $185 ($31) per MWh Commodity volatility 7% to 183% (18%) 7% to 187% (17%) Cross-commodity 43% to 99% (93%) 5% to 99% (93%) Balance / Range (Average 1 ) $ in millions,except inputs At December 31, 2019 At December 31, 2018 Liabilities Measured at Fair Value on a Recurring Basis Deposits $ 179 $ 27 Option model: At the money 16% to 37% (20%) N/M Other secured $ 109 $ 208 Discounted cash flow: Funding spread 111 to 124 bps (117 bps) 103 to 193 bps (148 bps) Option model: Volatility skew N/M -1 % At the money N/M 10% to 40% (25%) Borrowings $ 4,088 $ 3,806 Option model: At the money 5% to 44% (21%) 5% to 35% (22%) Volatility skew -2% to 0% (0%) -2% to 0% (0%) Equity correlation 38% to 94% (78%) 45% to 98% (85%) Equity - FX -75% to 26% (-25%) -75% to 50% (-27%) IR Correlation N/M 58% to 97% (85% / 91%) IR FX Correlation -26% to 10% (-7% / -7%) 28% to 58% (44% / 44%) Nonrecurring Fair Value Measurement Loans $ |
Fair Value Option
Fair Value Option | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Option | Fair Value Option The Firm has elected the fair value option for certain eligible instruments that are risk managed on a fair value basis to mitigate income statement volatility caused by measurement basis differences between the elected instruments and their associated risk management transactions or to eliminate complexities of applying certain accounting models. Borrowings Measured at Fair Value on a Recurring Basis $ in millions At At Business Unit Responsible for Risk Management Equity $ 30,214 $ 24,494 Interest rates 27,298 22,343 Commodities 4,501 2,735 Credit 1,246 856 Foreign exchange 1,202 756 Total $ 64,461 $ 51,184 Net Revenues from Borrowings under the Fair Value Option $ in millions 2019 2018 2017 Trading revenues $ (6,932 ) $ 2,679 $ (4,507 ) Interest expense 375 321 443 Net revenues 1 $ (7,307 ) $ 2,358 $ (4,950 ) 1. Amounts do not reflect any gains or losses from related economic hedges. Gains (losses) from changes in fair value are recorded in Trading revenues and are mainly attributable to movements in the reference price or index, interest rates or foreign exchange rates. Gains (Losses) Due to Changes in Instrument-Specific Credit Risk $ in millions Trading Revenues OCI 2019 Borrowings $ (11 ) $ (2,140 ) Loans and other debt 1 223 — Lending commitments (2 ) — Other — (30 ) 2018 Borrowings $ (24 ) $ 1,962 Loans and other debt 1 165 — Lending commitments (3 ) — Other (32 ) 41 2017 Borrowings $ (12 ) $ (903 ) Loans and other debt 1 159 — Lending commitments (2 ) — Other — (7 ) $ in millions At At Cumulative pre-tax DVA gain (loss) recognized in AOCI $ (1,998 ) $ 172 1. Loans and other debt instrument-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses. Difference between Contractual Principal and Fair Value 1 $ in millions At At Loans and other debt 2 $ 13,037 $ 13,094 Nonaccrual loans 2 10,849 10,831 Borrowings 3 (1,665 ) 2,657 1. Amounts indicate contractual principal greater than or (less than) fair value. 2. The majority of the difference between principal and fair value amounts for loans and other debt relates to distressed debt positions purchased at amounts well below par. 3. Excludes borrowings where the repayment of the initial principal amount fluctuates based on changes in a reference price or index. The previous tables exclude non-recourse debt from consolidated VIEs, liabilities related to transfers of financial assets treated as collateralized financings, pledged commodities and other liabilities that have specified assets attributable to them. Fair Value Loans on Nonaccrual Status $ in millions At At Nonaccrual loans $ 1,100 $ 1,497 Nonaccrual loans 90 or more days past due $ 330 $ 812 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Firm trades and makes markets globally in listed futures, OTC swaps, forwards, options and other derivatives referencing, among other things, interest rates, equities, currencies, investment grade and non-investment grade corporate credits, loans, bonds, U.S. and other sovereign securities, emerging market bonds and loans, credit indices, ABS indices, property indices, mortgage-related and other ABS, and real estate loan products. The Firm uses these instruments for market-making, foreign currency exposure management, and asset and liability management. The Firm manages its market-making positions by employing a variety of risk mitigation strategies. These strategies include diversification of risk exposures and hedging. Hedging activities consist of the purchase or sale of positions in related securities and financial instruments, including a variety of derivative products ( e.g. , futures, forwards, swaps and options). The Firm manages the market risk associated with its market-making activities on a Firmwide basis, on a worldwide trading division level and on an individual product basis. Derivative Fair Values At December 31, 2019 Assets $ in millions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 673 $ — $ — $ 673 Foreign exchange 41 1 — 42 Total 714 1 — 715 Not designated as accounting hedges Interest rate 179,450 4,839 519 184,808 Credit 4,895 2,417 — 7,312 Foreign exchange 62,957 1,399 22 64,378 Equity 27,621 — 23,447 51,068 Commodity and other 9,306 — 1,952 11,258 Total 284,229 8,655 25,940 318,824 Total gross derivatives $ 284,943 $ 8,656 $ 25,940 $ 319,539 Amounts offset Counterparty netting (213,710 ) (7,294 ) (24,037 ) (245,041 ) Cash collateral netting (41,222 ) (1,275 ) — (42,497 ) Total in Trading assets $ 30,011 $ 87 $ 1,903 $ 32,001 Amounts not offset 1 Financial instruments collateral (15,596 ) — — (15,596 ) Other cash collateral (46 ) — — (46 ) Net amounts $ 14,369 $ 87 $ 1,903 $ 16,359 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 1,900 Liabilities $ in millions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 1 $ — $ — $ 1 Foreign exchange 121 38 — 159 Total 122 38 — 160 Not designated as accounting hedges Interest rate 168,597 3,597 436 172,630 Credit 4,798 3,123 — 7,921 Foreign exchange 65,965 1,492 39 67,496 Equity 30,135 — 22,733 52,868 Commodity and other 7,713 — 1,911 9,624 Total 277,208 8,212 25,119 310,539 Total gross derivatives $ 277,330 $ 8,250 $ 25,119 $ 310,699 Amounts offset Counterparty netting (213,710 ) (7,294 ) (24,037 ) (245,041 ) Cash collateral netting (36,392 ) (832 ) — (37,224 ) Total in Trading liabilities $ 27,228 $ 124 $ 1,082 $ 28,434 Amounts not offset 1 Financial instruments collateral (7,747 ) — (287 ) (8,034 ) Other cash collateral (14 ) — — (14 ) Net amounts $ 19,467 $ 124 $ 795 $ 20,386 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 3,680 At December 31, 2018 Assets $ in millions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 512 $ 1 $ — $ 513 Foreign exchange 27 8 — 35 Total 539 9 — 548 Not designated as accounting hedges Interest rate 153,768 3,887 697 158,352 Credit 4,630 1,498 — 6,128 Foreign exchange 61,846 1,310 55 63,211 Equity 24,590 — 23,284 47,874 Commodity and other 10,538 — 1,934 12,472 Total 255,372 6,695 25,970 288,037 Total gross derivatives $ 255,911 $ 6,704 $ 25,970 $ 288,585 Amounts offset Counterparty netting (190,220 ) (5,260 ) (24,548 ) (220,028 ) Cash collateral netting (38,204 ) (1,180 ) — (39,384 ) Total in Trading assets $ 27,487 $ 264 $ 1,422 $ 29,173 Amounts not offset 1 Financial instruments collateral (12,467 ) — — (12,467 ) Other cash collateral (31 ) — — (31 ) Net amounts $ 14,989 $ 264 $ 1,422 $ 16,675 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 2,206 Liabilities $ in millions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 176 $ — $ — $ 176 Foreign exchange 62 24 — 86 Total 238 24 — 262 Not designated as accounting hedges Interest rate 142,592 2,669 663 145,924 Credit 4,545 1,608 — 6,153 Foreign exchange 62,099 1,302 19 63,420 Equity 27,119 — 23,521 50,640 Commodity and other 6,983 — 2,057 9,040 Total 243,338 5,579 26,260 275,177 Total gross derivatives $ 243,576 $ 5,603 $ 26,260 $ 275,439 Amounts offset Counterparty netting (190,220 ) (5,260 ) (24,548 ) (220,028 ) Cash collateral netting (27,860 ) (293 ) — (28,153 ) Total in Trading liabilities $ 25,496 $ 50 $ 1,712 $ 27,258 Amounts not offset 1 Financial instruments collateral (4,709 ) — (766 ) (5,475 ) Other cash collateral (53 ) (1 ) — (54 ) Net amounts $ 20,734 $ 49 $ 946 $ 21,729 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 4,773 1. Amounts relate to master netting agreements and collateral agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. See Note 3 for information related to the unsettled fair value of futures contracts not designated as accounting hedges, which are excluded from the previous tables. Derivative Notionals At December 31, 2019 Assets $ in billions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 14 $ 94 $ — $ 108 Foreign exchange 2 — — 2 Total 16 94 — 110 Not designated as accounting hedges Interest rate 4,230 7,398 732 12,360 Credit 136 79 — 215 Foreign exchange 2,667 91 10 2,768 Equity 429 — 419 848 Commodity and other 99 — 61 160 Total 7,561 7,568 1,222 16,351 Total gross derivatives $ 7,577 $ 7,662 $ 1,222 $ 16,461 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ — $ 71 $ — $ 71 Foreign exchange 9 2 — 11 Total 9 73 — 82 Not designated as accounting hedges Interest rate 4,185 6,866 666 11,717 Credit 153 84 — 237 Foreign exchange 2,841 91 14 2,946 Equity 455 — 515 970 Commodity and other 85 — 61 146 Total 7,719 7,041 1,256 16,016 Total gross derivatives $ 7,728 $ 7,114 $ 1,256 $ 16,098 At December 31, 2018 Assets $ in billions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 15 $ 52 $ — $ 67 Foreign exchange 5 1 — 6 Total 20 53 — 73 Not designated as accounting hedges Interest rate 4,807 6,708 1,157 12,672 Credit 162 74 — 236 Foreign exchange 2,436 118 14 2,568 Equity 373 — 371 744 Commodity and other 97 — 67 164 Total 7,875 6,900 1,609 16,384 Total gross derivatives $ 7,895 $ 6,953 $ 1,609 $ 16,457 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 2 $ 107 $ — $ 109 Foreign exchange 5 1 — 6 Total 7 108 — 115 Not designated as accounting hedges Interest rate 4,946 5,735 781 11,462 Credit 162 73 — 235 Foreign exchange 2,451 114 17 2,582 Equity 389 — 602 991 Commodity and other 72 — 65 137 Total 8,020 5,922 1,465 15,407 Total gross derivatives $ 8,027 $ 6,030 $ 1,465 $ 15,522 The Firm believes that the notional amounts of derivative contracts generally overstate its exposure. In most circumstances, notional amounts are used only as a reference point from which to calculate amounts owed between the parties to the contract. Furthermore, notional amounts do not reflect the benefit of legally enforceable netting arrangements or risk mitigating transactions. Gains (Losses) on Accounting Hedges $ in millions 2019 2018 2017 Fair value hedges—Recognized in Interest income 1 Interest rate contracts $ (10 ) $ (4 ) $ — Investment Securities—AFS 10 4 — Fair value hedges—Recognized in Interest expense Interest rate contracts $ 4,212 $ (1,529 ) $ (1,591 ) Deposits 2 7 — — Borrowings (4,288 ) 1,511 1,393 Net investment hedges—Foreign exchange contracts Recognized in OCI $ 14 $ 295 $ (365 ) Forward points excluded from hedge effectiveness testing—Recognized in Interest income 136 68 (20 ) Fair Value Hedges—Hedged Items $ in millions At At Investment securities—AFS 1 Carrying amount 3 currently or previously hedged $ 917 $ 201 Basis adjustments included in carrying amount 4 $ 14 $ 4 Deposits 2 Carrying amount 3 currently or previously hedged $ 5,435 $ — Basis adjustments included in carrying amount 4 $ (7 ) $ — Borrowings Carrying amount 3 currently or previously hedged $ 102,456 $ 102,899 Basis adjustments included in carrying amount 4 $ 2,593 $ (1,689 ) 1. The Firm began designating interest rate swaps as fair value hedges of certain AFS securities in the third quarter of 2018. 2. The Firm began designating interest rate swaps as fair value hedges of certain Deposits in the fourth quarter of 2019. 3. Carrying amount represents amortized cost basis. 4. Hedge accounting basis adjustments for AFS securities, Deposits and Borrowings are primarily related to outstanding hedges. Derivatives with Credit Risk-Related Contingencies Net Derivative Liabilities and Collateral Posted $ in millions At At Net derivative liabilities with credit risk- related contingent features $ 21,620 $ 16,403 Collateral posted 17,392 11,981 The previous table presents the aggregate fair value of certain derivative contracts that contain credit risk-related contingent features that are in a net liability position for which the Firm has posted collateral in the normal course of business. Incremental Collateral and Termination Payments upon Potential Future Ratings Downgrade $ in millions At One-notch downgrade $ 254 Two-notch downgrade 328 Bilateral downgrade agreements included in the amounts above 1 $ 498 1. Amount represents arrangements between the Firm and other parties where upon the downgrade of one party, the downgraded party must deliver collateral to the other party. These bilateral downgrade arrangements are used by the Firm to manage the risk of counterparty downgrades. The additional collateral or termination payments that may be called in the event of a future credit rating downgrade vary by contract and can be based on ratings by either or both of Moody’s Investors Service, Inc. (“Moody’s”) and S&P Global Ratings. The previous table shows the future potential collateral amounts and termination payments that could be called or required by counterparties or exchange and clearing organizations in the event of one-notch or two-notch downgrade scenarios based on the relevant contractual downgrade triggers. Maximum Potential Payout/Notional of Credit Protection Sold 1 Years to Maturity at December 31, 2019 $ in billions < 1 1-3 3-5 Over 5 Total Single-name CDS Investment grade $ 16 $ 17 $ 33 $ 9 $ 75 Non-investment grade 9 9 16 1 35 Total $ 25 $ 26 $ 49 $ 10 $ 110 Index and basket CDS Investment grade $ 4 $ 7 $ 46 $ 11 $ 68 Non-investment grade 7 4 17 10 38 Total $ 11 $ 11 $ 63 $ 21 $ 106 Total CDS sold $ 36 $ 37 $ 112 $ 31 $ 216 Other credit contracts — — — — — Total credit protection sold $ 36 $ 37 $ 112 $ 31 $ 216 CDS protection sold with identical protection purchased $ 187 Years to Maturity at December 31, 2018 $ in billions < 1 1-3 3-5 Over 5 Total Single-name CDS Investment grade $ 22 $ 24 $ 19 $ 8 $ 73 Non-investment grade 10 11 9 1 31 Total $ 32 $ 35 $ 28 $ 9 $ 104 Index and basket CDS Investment grade $ 5 $ 10 $ 61 $ 7 $ 83 Non-investment grade 5 6 13 13 37 Total $ 10 $ 16 $ 74 $ 20 $ 120 Total CDS sold $ 42 $ 51 $ 102 $ 29 $ 224 Other credit contracts — — — — — Total credit protection sold $ 42 $ 51 $ 102 $ 29 $ 224 CDS protection sold with identical protection purchased $ 210 Fair Value Asset (Liability) of Credit Protection Sold 1 $ in millions At At Single-name CDS Investment grade $ 1,057 $ 118 Non-investment grade (540 ) (403 ) Total $ 517 $ (285 ) Index and basket CDS Investment grade $ 1,052 $ 314 Non-investment grade 134 (1,413 ) Total $ 1,186 $ (1,099 ) Total CDS sold $ 1,703 $ (1,384 ) Other credit contracts (17 ) (14 ) Total credit protection sold $ 1,686 $ (1,398 ) 1. Investment grade/non-investment grade determination is based on the internal credit rating of the reference obligation. Internal credit ratings serve as the Credit Risk Management Department’s assessment of credit risk and the basis for a comprehensive credit limits framework used to control credit risk. The Firm uses quantitative models and judgment to estimate the various risk parameters related to each obligor. Protection Purchased with CDS Notional $ in billions At At Single name $ 118 $ 116 Index and basket 103 117 Tranched index and basket 15 14 Total $ 236 $ 247 Fair Value Asset (Liability) $ in millions At At Single name $ (723 ) $ 277 Index and basket (1,139 ) 1,333 Tranched index and basket (450 ) (251 ) Total $ (2,312 ) $ 1,359 The Firm enters into credit derivatives, principally CDS, under which it receives or provides protection against the risk of default on a set of debt obligations issued by a specified reference entity or entities. A majority of the Firm’s counterparties for these derivatives are banks, broker-dealers, and insurance and other financial institutions. The fair value amounts as shown in the previous tables are prior to cash collateral or counterparty netting. The purchase of credit protection does not represent the sole manner in which the Firm risk manages its exposure to credit derivatives. The Firm manages its exposure to these derivative contracts through a variety of risk mitigation strategies, which include managing the credit and correlation risk across single-name, non-tranched indices and baskets, tranched indices and baskets, and cash positions. Aggregate market risk limits have been established for credit derivatives, and market risk measures are routinely monitored against these limits. The Firm may also recover amounts on the underlying reference obligation delivered to the Firm under CDS where credit protection was sold. Single-Name CDS . A CDS protects the buyer against the loss of principal on a bond or loan in case of a default by the issuer. The protection buyer pays a periodic premium (generally quarterly) over the life of the contract and is protected for the period. The Firm, in turn, performs under a CDS if a credit event as defined under the contract occurs. Typical credit events include bankruptcy, dissolution or insolvency of the referenced entity, failure to pay and restructuring of the obligations of the referenced entity. Index and Basket CDS . Index and basket CDS are products where credit protection is provided on a portfolio of single-name CDS. Generally, in the event of a default on one of the underlying names, the Firm pays a pro rata portion of the total notional amount of the CDS. The Firm also enters into tranched index and basket CDS where credit protection is provided on a particular portion of the portfolio loss distribution. The most junior tranches cover initial defaults, and once losses exceed the notional of the tranche, they are passed on to the next most senior tranche in the capital structure. Other Credit Contracts . The Firm has invested in CLNs and CDOs, which are hybrid instruments containing embedded derivatives, in which credit protection has been sold to the issuer of the note. If there is a credit event of a reference entity underlying the instrument, the principal balance of the note may not be repaid in full to the Firm. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities AFS and HTM Securities At December 31, 2019 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS securities U.S. government and agency securities: U.S. Treasury securities $ 32,465 $ 224 $ 111 $ 32,578 U.S. agency securities 1 20,725 249 100 20,874 Total U.S. government and agency securities 53,190 473 211 53,452 Corporate and other debt: Agency CMBS 4,810 55 57 4,808 Corporate bonds 1,891 17 1 1,907 State and municipal securities 481 22 — 503 FFELP student loan ABS 2 1,580 1 28 1,553 Total corporate and other debt 8,762 95 86 8,771 Total AFS securities 61,952 568 297 62,223 HTM securities U.S. government and agency securities: U.S. Treasury securities 30,145 568 52 30,661 U.S. agency securities 1 12,589 151 57 12,683 Total U.S. government and agency securities 42,734 719 109 43,344 Corporate and other debt: Non-agency CMBS 768 22 1 789 Total HTM securities 43,502 741 110 44,133 Total investment securities $ 105,454 $ 1,309 $ 407 $ 106,356 At December 31, 2018 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS securities U.S. government and agency securities: U.S. Treasury securities $ 36,268 $ 40 $ 656 $ 35,652 U.S. agency securities 1 20,740 10 497 20,253 Total U.S. government and agency securities 57,008 50 1,153 55,905 Corporate and other debt: Agency CMBS 1,054 — 62 992 Non-agency CMBS 461 — 14 447 Corporate bonds 1,585 — 32 1,553 State and municipal securities 200 2 — 202 FFELP student loan ABS 2 1,967 10 15 1,962 Total corporate and other debt 5,267 12 123 5,156 Total AFS securities 62,275 62 1,276 61,061 HTM securities U.S. government and agency securities: U.S. Treasury securities 17,832 44 403 17,473 U.S. agency securities 1 12,456 8 446 12,018 Total U.S. government and agency securities 30,288 52 849 29,491 Corporate and other debt: Non-agency CMBS 483 — 9 474 Total HTM securities 30,771 52 858 29,965 Total investment securities $ 93,046 $ 114 $ 2,134 $ 91,026 1. U.S. agency securities consist mainly of agency-issued debt, agency mortgage pass-through pool securities and CMOs. 2. Underlying loans are backed by a guarantee, ultimately from the U.S. Department of Education, of at least 95% of the principal balance and interest outstanding. Investment Securities in an Unrealized Loss Position At December 31, 2019 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS securities U.S. government and agency securities: U.S. Treasury securities $ 4,793 $ 28 $ 7,904 $ 83 $ 12,697 $ 111 U.S. agency securities 2,641 20 7,697 80 10,338 100 Total U.S. government and agency securities 7,434 48 15,601 163 23,035 211 Corporate and other debt: Agency CMBS 2,294 26 681 31 2,975 57 Corporate bonds 194 1 44 — 238 1 FFELP student loan ABS 91 — 1,165 28 1,256 28 Total corporate and other debt 2,579 27 1,890 59 4,469 86 Total AFS securities 10,013 75 17,491 222 27,504 297 HTM securities U.S. government and agency securities: U.S. Treasury securities 6,042 52 651 — 6,693 52 U.S. agency securities 2,524 18 2,420 39 4,944 57 Total U.S. government and agency securities 8,566 70 3,071 39 11,637 109 Corporate and other debt: Non-agency CMBS 167 1 65 — 232 1 Total HTM securities 8,733 71 3,136 39 11,869 110 Total investment securities $ 18,746 $ 146 $ 20,627 $ 261 $ 39,373 $ 407 At December 31, 2018 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS securities U.S. government and agency securities: U.S. Treasury securities $ 19,937 $ 541 $ 5,994 $ 115 $ 25,931 $ 656 U.S. agency securities 12,904 383 4,142 114 17,046 497 Total U.S. government and agency securities 32,841 924 10,136 229 42,977 1,153 Corporate and other debt: Agency CMBS 808 62 — — 808 62 Non-agency CMBS — — 446 14 446 14 Corporate bonds 470 7 1,010 25 1,480 32 FFELP student loan ABS 1,366 15 — — 1,366 15 Total corporate and other debt 2,644 84 1,456 39 4,100 123 Total AFS securities 35,485 1,008 11,592 268 47,077 1,276 HTM securities U.S. government and agency securities: U.S. Treasury securities — — 11,161 403 11,161 403 U.S. agency securities 410 1 10,004 445 10,414 446 Total U.S. government and agency securities 410 1 21,165 848 21,575 849 Corporate and other debt: Non-agency CMBS 206 1 216 8 422 9 Total HTM securities 616 2 21,381 856 21,997 858 Total investment securities $ 36,101 $ 1,010 $ 32,973 $ 1,124 $ 69,074 $ 2,134 The Firm believes there are no securities in an unrealized loss position that are other-than-temporarily impaired after performing the analysis described in Note 2 . For AFS securities, the Firm does not intend to sell the securities and is not likely to be required to sell the securities prior to recovery of the amortized cost basis. Furthermore, for both AFS and HTM securities, the securities have not experienced credit losses as the unrealized losses reported in the previous table are primarily due to higher interest rates since those securities were purchased. See Note 14 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, non-agency CMBS and FFELP student loan ABS. Investment Securities by Contractual Maturity At December 31, 2019 $ in millions Amortized Fair Annualized AFS securities U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 2,293 $ 2,302 2.2 % After 1 year through 5 years 25,919 26,037 1.8 % After 5 years through 10 years 4,253 4,239 1.7 % Total 32,465 32,578 U.S. agency securities: Due within 1 year 310 310 1.0 % After 1 year through 5 years 362 359 1.4 % After 5 years through 10 years 1,380 1,373 1.8 % After 10 years 18,673 18,832 2.4 % Total 20,725 20,874 Total U.S. government and agency securities 53,190 53,452 2.0 % Corporate and other debt: Agency CMBS: After 1 year through 5 years 606 603 1.8 % After 5 years through 10 years 3,280 3,305 2.5 % After 10 years 924 900 2.0 % Total 4,810 4,808 Corporate bonds: Due within 1 year 43 43 1.7 % After 1 year through 5 years 1,448 1,462 2.6 % After 5 years through 10 years 400 402 2.9 % Total 1,891 1,907 State and municipal securities: After 1 year through 5 years 36 37 3.1 % After 5 years through 10 years 71 72 2.2 % After 10 years 374 394 4.7 % Total 481 503 FFELP student loan ABS: After 1 year through 5 years 71 69 0.8 % After 5 years through 10 years 377 367 0.8 % After 10 years 1,132 1,117 1.2 % Total 1,580 1,553 Total corporate and other debt 8,762 8,771 2.2 % Total AFS securities 61,952 62,223 2.0 % At December 31, 2019 $ in millions Amortized Fair Annualized HTM securities U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 2,436 $ 2,452 2.5 % After 1 year through 5 years 18,026 18,254 2.1 % After 5 years through 10 years 8,600 8,842 2.2 % After 10 years 1,083 1,113 2.5 % Total 30,145 30,661 U.S. agency securities: After 5 years through 10 years 46 45 1.8 % After 10 years 12,543 12,638 2.6 % Total 12,589 12,683 Total U.S. government and agency securities 42,734 43,344 2.3 % Corporate and other debt: Non-agency CMBS: Due within 1 year 91 91 4.9 % After 1 year through 5 years 125 125 5.5 % After 5 years through 10 years 514 532 5.3 % After 10 years 38 41 2.1 % Total corporate and other debt 768 789 4.0 % Total HTM securities 43,502 44,133 2.3 % Total investment securities $ 105,454 $ 106,356 2.2 % Gross Realized Gains (Losses) on Sales of AFS Securities $ in millions 2019 2018 2017 Gross realized gains $ 113 $ 12 $ 46 Gross realized (losses) (10 ) (4 ) (11 ) Total 1 $ 103 $ 8 $ 35 1. Realized gains and losses are recognized in Other revenues in the income statements. |
Collateralized Transactions
Collateralized Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Collateralized Agreements [Abstract] | |
Collateralized Transactions | Collateralized Transactions The Firm enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate customers’ needs and to finance its inventory positions. The Firm manages credit exposure arising from such transactions by, in appropriate circumstances, entering into master netting agreements and collateral agreements with its counterparties. These agreements provide the Firm with the right, in the event of a default by the counterparty, to net a counterparty's rights and obligations under the agreement and to liquidate and set off collateral held by the Firm against the net amount owed by the counterparty. The Firm’s policy is generally to take possession of securities purchased or borrowed in connection with securities purchased under agreements to resell and securities borrowed transactions, respectively, and to receive cash and securities delivered under securities sold under agreements to repurchase or securities loaned transactions (with rights of rehypothecation). The Firm also monitors the fair value of the underlying securities as compared with the related receivable or payable, including accrued interest, and, as necessary, requests additional collateral, as provided under the applicable agreement to ensure such transactions are adequately collateralized, or the return of excess collateral. The risk related to a decline in the market value of collateral pledged or received is managed by setting appropriate market-based margin requirements. Increases in collateral margin calls on secured financing due to market value declines may be mitigated by increases in collateral margin calls on securities purchased under agreements to resell and securities borrowed transactions with similar quality collateral. Additionally, the Firm may request lower quality collateral pledged be replaced with higher quality collateral through collateral substitution rights in the underlying agreements. The Firm actively manages its secured financings in a manner that reduces the potential refinancing risk of secured financings of less liquid assets and also considers the quality of collateral when negotiating collateral eligibility with counterparties. The Firm utilizes shorter term secured financing for highly liquid assets and has established longer tenor limits for less liquid assets, for which funding may be at risk in the event of a market disruption. Offsetting of Certain Collateralized Transactions At December 31, 2019 $ in millions Gross Amounts Amounts Offset Balance Sheet Net Amounts Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 247,545 $ (159,321 ) $ 88,224 $ (85,200 ) $ 3,024 Securities borrowed 109,528 (2,979 ) 106,549 (101,850 ) 4,699 Liabilities Securities sold under agreements to repurchase $ 213,519 $ (159,319 ) $ 54,200 $ (44,549 ) $ 9,651 Securities loaned 11,487 (2,981 ) 8,506 (8,324 ) 182 Net amounts for which master netting agreements are not in place or may not be legally enforceable Securities purchased under agreements to resell $ 2,255 Securities borrowed 1,181 Securities sold under agreements to repurchase 8,033 Securities loaned 101 At December 31, 2018 $ in millions Gross Amounts Amounts Offset Balance Sheet Net Amounts Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 262,976 $ (164,454 ) $ 98,522 $ (95,610 ) $ 2,912 Securities borrowed 134,711 (18,398 ) 116,313 (112,551 ) 3,762 Liabilities Securities sold under agreements to repurchase $ 214,213 $ (164,454 ) $ 49,759 $ (41,095 ) $ 8,664 Securities loaned 30,306 (18,398 ) 11,908 (11,677 ) 231 Net amounts for which master netting agreements are not in place or may not be legally enforceable Securities purchased under agreements to resell $ 2,579 Securities borrowed 724 Securities sold under agreements to repurchase 6,762 Securities loaned 191 1. Amounts relate to master netting agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. For information related to offsetting of derivatives, see Note 5 . Gross Secured Financing Balances by Remaining Contractual Maturity At December 31, 2019 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase $ 67,158 $ 81,300 $ 26,904 $ 38,157 $ 213,519 Securities loaned 2,378 3,286 516 5,307 11,487 Total included in the offsetting disclosure $ 69,536 $ 84,586 $ 27,420 $ 43,464 $ 225,006 Trading liabilities— 23,877 — — — 23,877 Total $ 93,413 $ 84,586 $ 27,420 $ 43,464 $ 248,883 At December 31, 2018 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase $ 56,503 $ 93,427 $ 35,692 $ 28,591 $ 214,213 Securities loaned 18,397 3,609 1,985 6,315 30,306 Total included in the offsetting disclosure $ 74,900 $ 97,036 $ 37,677 $ 34,906 $ 244,519 Trading liabilities— 17,594 — — — 17,594 Total $ 92,494 $ 97,036 $ 37,677 $ 34,906 $ 262,113 Gross Secured Financing Balances by Class of Collateral Pledged $ in millions At At Securities sold under agreements to repurchase U.S. Treasury and agency securities $ 68,895 $ 68,487 State and municipal securities 905 925 Other sovereign government obligations 109,414 120,432 ABS 2,218 3,017 Corporate and other debt 6,066 8,719 Corporate equities 25,563 12,079 Other 458 554 Total $ 213,519 $ 214,213 Securities loaned Other sovereign government obligations $ 3,026 $ 19,021 Corporate equities 8,422 10,800 Other 39 485 Total $ 11,487 $ 30,306 Total included in the offsetting disclosure $ 225,006 $ 244,519 Trading liabilities—Obligation to return securities received as collateral Corporate equities $ 23,873 $ 17,594 Other 4 — Total $ 23,877 $ 17,594 Total $ 248,883 $ 262,113 Carrying Value of Assets Loaned or Pledged without Counterparty Right to Sell or Repledge $ in millions At At Trading assets $ 41,201 $ 39,430 Loans (gross of allowance for loan losses) 750 — Total $ 41,951 $ 39,430 The Firm pledges certain of its trading assets and loans to collateralize securities sold under agreements to repurchase, securities loaned, other secured financings and derivatives and to cover customer short sales. Counterparties may or may not have the right to sell or repledge the collateral. Pledged financial instruments that can be sold or repledged by the secured party are identified as Trading assets (pledged to various parties) in the balance sheets. Fair Value of Collateral Received with Right to Sell or Repledge $ in millions At At Collateral received with right to sell $ 679,280 $ 639,610 Collateral that was sold or repledged 1 539,412 487,983 1. Does not include securities used to meet federal regulations for the Firm’s U.S. broker-dealers. Restricted Cash and Segregated Securities $ in millions At At Restricted cash $ 32,512 $ 35,356 Segregated securities 1 25,061 26,877 Total $ 57,573 $ 62,233 1. Securities segregated under federal regulations for the Firm’s U.S. broker-dealers are sourced from Securities purchased under agreements to resell and Trading assets in the balance sheets. The Firm receives collateral in the form of securities in connection with securities purchased under agreements to resell, securities borrowed, securities-for-securities transactions, derivative transactions, customer margin loans and securities-based lending. In many cases, the Firm is permitted to sell or repledge this collateral to secure securities sold under agreements to repurchase, to enter into securities lending and derivative transactions or for delivery to counterparties to cover short positions. Concentration Based on the Firm’s Total Assets At At U.S. government and agency securities and other sovereign government obligations Trading assets 1 10 % 12 % Off balance sheet—Collateral received 2 12 % 17 % 1. Other sovereign government obligations included in Trading assets primarily consist of the U.K., Japan and Australia at December 31, 2019 , and UK., Japan and Brazil at December 31, 2018 . 2. Collateral received is primarily related to Securities purchased under agreements to resell and Securities borrowed. The Firm is subject to concentration risk by holding large positions in certain types of securities, loans or commitments to purchase securities of a single issuer, including sovereign governments and other entities, issuers located in a particular country or geographic area, public and private issuers involving developing countries or issuers engaged in a particular industry. Positions taken and underwriting and financing commitments, including those made in connection with the Firm’s private equity, principal investment and lending activities, often involve substantial amounts and significant exposure to individual issuers and businesses, including investment grade and non-investment grade issuers. Customer Margin Lending $ in millions At At Customer receivables representing margin loans $ 31,916 $ 26,225 The Firm provides margin lending arrangements which allow customers to borrow against the value of qualifying securities. Receivables under margin lending arrangements are included within Customer and other receivables in the balance sheets. Under these agreements and transactions, the Firm receives collateral, which includes U.S. government and agency securities, other sovereign government obligations, corporate and other debt, and corporate equities. Customer receivables generated from margin lending activities are collateralized by customer-owned securities held by the Firm. The Firm monitors required margin levels and established credit terms daily and, pursuant to such guidelines, requires customers to deposit additional collateral, or reduce positions, when necessary. Margin loans are extended on a demand basis and generally are not committed facilities. Factors considered in the review of margin loans are the amount of the loan, the intended purpose, the degree of leverage being employed in the account and the amount of collateral, as well as an overall evaluation of the portfolio to ensure proper diversification or, in the case of concentrated positions, appropriate liquidity of the underlying collateral or potential hedging strategies to reduce risk. Underlying collateral for margin loans is reviewed with respect to the liquidity of the proposed collateral positions, valuation of securities, historic trading range, volatility analysis and an evaluation of industry concentrations. For these transactions, adherence to the Firm’s collateral policies significantly limits its credit exposure in the event of a customer default. The Firm may request additional margin collateral from customers, if appropriate, and, if necessary, may sell securities that have not been paid for or purchase securities sold but not delivered from customers. Other Secured Financings Other secured financings include the liabilities related to transfers of financial assets that are accounted for as financings rather than sales, consolidated VIEs where the Firm is deemed to be the primary beneficiary, and certain ELNs and other secured borrowings. These liabilities are generally payable from the cash flows of the related assets, which are accounted for as Trading assets (see Notes 12 and 14 ). |
Loans, Lending Commitments and
Loans, Lending Commitments and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans, Lending Commitments and Allowance for Credit Losses | Loans, Lending Commitments and Allowance for Credit Losses The Firm’s loan portfolio consists of the following types of loans: • Corporate . Corporate loans primarily include commercial and industrial lending used for general corporate purposes, working capital and liquidity, event-driven loans, secured lending facilities, and securities-based lending. Event-driven loans support client merger, acquisition, recapitalization or project finance activities. Corporate loans are structured as revolving lines of credit, letter of credit facilities, term loans and bridge loans. Risk factors considered in determining the allowance for corporate loans include the borrower’s financial strength, industry, facility structure, collateral and covenants along with other qualitative factors. • Consumer . Consumer loans include unsecured loans and securities-based lending, which allows clients to borrow money against the value of qualifying securities for any suitable purpose other than purchasing, trading, or carrying securities or refinancing margin debt. The majority of consumer loans are structured as revolving lines of credit. The allowance methodology for unsecured loans considers the specific attributes of the loan, as well as the borrower’s source of repayment. The allowance methodology for securities-based lending considers the collateral type underlying the loan ( e.g. , diversified securities, concentrated securities or restricted stock). • Residential Real Estate . Residential real estate loans mainly include non-conforming loans and HELOC. The allowance methodology for non-conforming residential mortgage loans considers several factors, including, but not limited to, loan-to-value ratio, FICO score, home price index and delinquency status. The methodology for HELOC considers credit limits and utilization rates in addition to the factors considered for non-conforming residential mortgages. • Commercial Real Estate . Commercial real estate loans include owner-occupied loans and income-producing loans. The principal risk factors for determining the allowance for commercial real estate loans are the underlying collateral type, loan-to-value ratio and debt service ratio. Loans by Type At December 31, 2019 $ in millions Loans Held for Investment Loans Held for Sale Total Loans Corporate $ 48,756 $ 10,515 $ 59,271 Consumer 31,610 — 31,610 Residential real estate 30,184 13 30,197 Commercial real estate 1 7,859 2,049 9,908 Total loans, gross 118,409 12,577 130,986 Allowance for loan losses (349 ) — (349 ) Total loans, net $ 118,060 $ 12,577 $ 130,637 Fixed rate loans, net $ 22,716 Floating or adjustable rate loans, net 107,921 Loans to non-U.S. borrowers, net 21,617 At December 31, 2018 $ in millions Loans Held for Investment Loans Held for Sale Total Loans Corporate $ 36,909 $ 13,886 $ 50,795 Consumer 27,868 — 27,868 Residential real estate 27,466 22 27,488 Commercial real estate 1 7,810 1,856 9,666 Total loans, gross 100,053 15,764 115,817 Allowance for loan losses (238 ) — (238 ) Total loans, net $ 99,815 $ 15,764 $ 115,579 Fixed rate loans, net $ 15,632 Floating or adjustable rate loans, net 99,947 Loans to non-U.S. borrowers, net 17,568 1. Beginning in 2019, loans previously referred to as Wholesale real estate are referred to as Commercial real estate. See Note 3 for further information regarding Loans and lending commitments held at fair value. See Note 13 for details of current commitments to lend in the future. Credit Quality CRM evaluates new obligors before credit transactions are initially approved and at least annually thereafter for corporate and commercial real estate loans. For corporate loans, credit evaluations typically involve the evaluation of financial statements, assessment of leverage, liquidity, capital strength, asset composition and quality, market capitalization and access to capital markets, cash flow projections and debt service requirements, and the adequacy of collateral, if applicable. CRM also evaluates strategy, market position, industry dynamics, obligor’s management and other factors that could affect an obligor’s risk profile. For commercial real estate loans, the credit evaluation is focused on property and transaction metrics, including property type, loan-to-value ratio, occupancy levels, debt service ratio, prevailing capitalization rates and market dynamics. For residential real estate and consumer loans, the initial credit evaluation typically includes, but is not limited to, review of the obligor’s income, net worth, liquidity, collateral, loan-to-value ratio and credit bureau information. Subsequent credit monitoring for residential real estate loans is performed at the portfolio level. Consumer loan collateral values are monitored on an ongoing basis. The Firm utilizes the following credit quality indicators, which are consistent with U.S. banking agencies’ definitions of criticized exposures, as applicable, in its credit monitoring process for loans held for investment: • Pass . A credit exposure rated Pass has a continued expectation of timely repayment, all obligations of the borrower are current, and the obligor complies with material terms and conditions of the lending agreement. • Special Mention . Extensions of credit that have potential weakness that deserve management’s close attention and, if left uncorrected, may, at some future date, result in the deterioration of the repayment prospects or collateral position. • Substandard . Obligor has a well-defined weakness that jeopardizes the repayment of the debt and has a high probability of payment default with the distinct possibility that the Firm will sustain some loss if noted deficiencies are not corrected. • Doubtful . Inherent weakness in the exposure makes the collection or repayment in full, based on existing facts, conditions and circumstances, highly improbable, and the amount of loss is uncertain. • Loss . Extensions of credit classified as loss are considered uncollectible and are charged off. Loans considered as Doubtful or Loss are considered impaired. Substandard loans are regularly reviewed for impairment. For further information, see Note 2 . Loans Held for Investment before Allowance by Credit Quality 1 At December 31, 2019 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total Pass $ 47,681 $ 31,605 $ 30,060 $ 7,664 $ 117,010 Special mention 464 — 28 3 495 Substandard 605 5 96 192 898 Doubtful 6 — — — 6 Total $ 48,756 $ 31,610 $ 30,184 $ 7,859 $ 118,409 At December 31, 2018 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total Pass $ 36,217 $ 27,863 $ 27,387 $ 7,378 $ 98,845 Special mention 492 5 — 312 809 Substandard 200 — 79 120 399 Doubtful — — — — — Total $ 36,909 $ 27,868 $ 27,466 $ 7,810 $ 100,053 1. There were no loans held for investment considered Loss as of December 31, 2019 and 2018. Impaired Loans and Lending Commitments before Allowance At December 31, 2019 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total Loans With allowance $ 268 $ — $ — $ 85 $ 353 Without allowance 1 32 5 87 — 124 Total impaired loans $ 300 $ 5 $ 87 $ 85 $ 477 UPB 309 5 90 85 489 Lending commitments With allowance $ 4 $ — $ — $ 14 $ 18 Without allowance 1 32 — — — 32 Total impaired lending commitments $ 36 $ — $ — $ 14 $ 50 At December 31, 2018 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total Loans With allowance $ 24 $ — $ — $ — $ 24 Without allowance 1 32 — 69 — 101 Total impaired loans $ 56 $ — $ 69 $ — $ 125 UPB 63 — 70 — 133 Lending commitments With allowance $ 19 $ — $ — $ — $ 19 Without allowance 1 34 — — — 34 Total impaired lending commitments $ 53 $ — $ — $ — $ 53 1. At December 31, 2019 and December 31, 2018 , no allowance was recorded for these loans and lending commitments as the present value of the expected future cash flows or value of the collateral held equaled or exceeded the carrying value. Loans and lending commitments in the previous table have been evaluated for a specific allowance. All remaining loans and lending commitments are assessed under the inherent allowance methodology. Impaired Loans and Total Allowance by Region At December 31, 2019 $ in millions Americas EMEA Asia Total Impaired loans $ 392 $ 85 $ — $ 477 Total Allowance for loan losses 270 76 3 349 At December 31, 2018 $ in millions Americas EMEA Asia Total Impaired loans $ 125 $ — $ — $ 125 Total Allowance for loan losses 193 42 3 238 Troubled Debt Restructurings $ in millions At At Loans $ 92 $ 38 Lending commitments 32 45 Allowance for loan losses and lending commitments 16 4 Impaired loans and lending commitments classified as held for investment within corporate loans include TDRs. These restructurings typically include modifications of interest rates, collateral requirements, other loan covenants and payment extensions. Allowance for Loan Losses Rollforward $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total December 31, 2018 $ 144 $ 7 $ 20 $ 67 $ 238 Gross charge-offs — — (2 ) — (2 ) Recoveries — — — — — Net recoveries (charge-offs) — — (2 ) — (2 ) Provision (release) 104 1 7 8 120 Other (7 ) — — — (7 ) December 31, 2019 $ 241 $ 8 $ 25 $ 75 $ 349 Inherent $ 212 $ 8 $ 25 $ 73 $ 318 Specific 29 — — 2 31 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total December 31, 2017 $ 126 $ 4 $ 24 $ 70 $ 224 Gross charge-offs (5 ) — (1 ) — (6 ) Recoveries 54 — — — 54 Net recoveries (charge-offs) 49 — (1 ) — 48 Provision (release) 1 (29 ) 3 (3 ) 5 (24 ) Other (2 ) — — (8 ) (10 ) December 31, 2018 $ 144 $ 7 $ 20 $ 67 $ 238 Inherent $ 139 $ 7 $ 20 $ 67 $ 233 Specific 5 — — — 5 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total December 31, 2016 $ 195 $ 4 $ 20 $ 55 $ 274 Gross charge-offs (75 ) — — — (75 ) Recoveries 1 — — — 1 Net recoveries (charge-offs) (74 ) — — — (74 ) Provision (release) 5 — 4 13 22 Other — — — 2 2 December 31, 2017 $ 126 $ 4 $ 24 $ 70 $ 224 Inherent $ 119 $ 4 $ 24 $ 70 $ 217 Specific 7 — — — 7 1. During 2018, the release was primarily due to the recovery of an energy industry related loan charged off in 2017. Allowance for Lending Commitments Rollforward $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total December 31, 2018 $ 198 $ 2 $ — $ 3 $ 203 Provision (release) 38 — — 4 42 Other (4 ) — — — (4 ) December 31, 2019 $ 232 $ 2 $ — $ 7 $ 241 Inherent $ 230 $ 2 $ — $ 7 $ 239 Specific 2 — — — 2 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total December 31, 2017 $ 194 $ 1 $ — $ 3 $ 198 Provision (release) 7 1 — 1 9 Other (3 ) — — (1 ) (4 ) December 31, 2018 $ 198 $ 2 $ — $ 3 $ 203 Inherent $ 193 $ 2 $ — $ 3 $ 198 Specific 5 — — — 5 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total December 31, 2016 $ 185 $ 1 $ — $ 4 $ 190 Provision (release) 8 — — (1 ) 7 Other 1 — — — 1 December 31, 2017 $ 194 $ 1 $ — $ 3 $ 198 Inherent $ 192 $ 1 $ — $ 3 $ 196 Specific 2 — — — 2 Employee Loans $ in millions At At Balance $ 2,980 $ 3,415 Allowance for loan losses (61 ) (63 ) Balance, net $ 2,919 $ 3,352 Remaining repayment term, weighted average in years 4.8 4.3 Employee loans are granted in conjunction with a program established primarily to recruit certain Wealth Management representatives, are full recourse and generally require periodic repayments. These loans are recorded in Customer and other receivables in the balance sheets. The Firm establishes an allowance for loan amounts it does not consider recoverable, and the related provision is recorded in Compensation and benefits expense. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Rollforward $ in millions IS WM IM Total At December 31, 2017¹ $ 295 $ 5,533 $ 769 $ 6,597 Foreign currency and other (21 ) — — (21 ) Acquired — — 112 112 At December 31, 2018¹ $ 274 $ 5,533 $ 881 $ 6,688 Foreign currency and other (13 ) (1 ) — (14 ) Acquired 2 — 469 — 469 At December 31, 2019 1 $ 261 $ 6,001 $ 881 $ 7,143 Accumulated impairments 3 $ 673 $ — $ 27 $ 700 IS—Institutional Securities WM—Wealth Management IM—Investment Management 1. Balances represent the amount of the Firm’s goodwill after accumulated impairments. 2. Amounts reflect the impact of the Firm's acquisition of Solium Capital Inc. in the second quarter of 2019. 3. Accumulated impairments were recorded prior to the periods shown. There were no impairments recorded in 2019 , 2018 or 2017 . The Firm's annual goodwill impairment testing as of July 1, 2019 and 2018 did not indicate any goodwill impairment, as reporting units with goodwill had a fair value that was substantially in excess of carrying value. Net Amortizable Intangible Assets Rollforward 1 $ in millions IS WM IM Total At December 31, 2017 $ 349 $ 2,092 $ 4 $ 2,445 Acquired — — 66 66 Disposals (6 ) — — (6 ) Amortization expense (70 ) (264 ) (10 ) (344 ) Other (3 ) — — (3 ) At December 31, 2018 $ 270 $ 1,828 $ 60 $ 2,158 Acquired 2 3 270 — 273 Disposals (29 ) — — (29 ) Amortization expense (35 ) (271 ) (8 ) (314 ) Other 18 1 — 19 At December 31, 2019 $ 227 $ 1,828 $ 52 $ 2,107 Gross Amortizable Intangible Assets by Type 1 At December 31, 2019 At December 31, 2018 $ in millions Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Tradenames $ 291 $ 71 $ 286 $ 60 Customer relationships 4,321 2,703 4,067 2,446 Management contracts 482 327 507 311 Other 217 103 175 60 Total $ 5,311 $ 3,204 $ 5,035 $ 2,877 Estimated annual amortization expense for the next five years $ 307 1. Amounts exclude $5 million of mortgage servicing rights in 2018. 2. Amounts principally reflect the impact of the Firm's acquisition of Solium Capital Inc. in the second quarter of 2019. |
Other Assets - Equity Method In
Other Assets - Equity Method Investments and Leases | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets - Equity Method Investments and Leases | Other Assets—Equity Method Investments and Leases Equity Method Investments $ in millions At At Investments $ 2,363 $ 2,432 $ in millions 2019 2018 2017 Income (loss) 1 $ (81 ) $ 20 $ (34 ) 1. Includes impairments of the Investment Management business segment’s equity method investments as follows: in 2019 , $41 million related to a third-party asset manager; in 2018 and 2017 , $46 million and $53 million , respectively, related to a separate third-party asset manager. Equity method investments, other than investments in certain fund interests, are summarized above and are included in Other assets in the balance sheets with related income or loss included in Other revenues in the income statements. See "Net Asset Value Measurements—Fund Interests" in Note 3 for the carrying value of certain of the Firm’s fund interests, which are composed of general and limited partnership interests, as well as any related carried interest. Japanese Securities Joint Venture $ in millions 2019 2018 2017 Income from investment in MUMSS $ 17 $ 105 $ 123 The Firm and Mitsubishi UFJ Financial Group, Inc. (“MUFG”) formed a joint venture in Japan comprising their respective investment banking and securities businesses by forming two joint venture companies, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“MUMSS”) and Morgan Stanley MUFG Securities Co., Ltd. (“MSMS”) (the “Joint Venture”). The Firm owns a 40% economic interest in the Joint Venture and MUFG owns the other 60% . The Firm’s 40% voting interest in MUMSS is accounted for under the equity method within the Institutional Securities business segment, and is included in the equity method investment balances above. The Firm consolidates MSMS into the Institutional Securities business segment, based on its 51% voting interest. The Firm engages in transactions in the ordinary course of business with MUFG and its affiliates; for example, investment banking, financial advisory, sales and trading, derivatives, investment management, lending, securitization and other financial services transactions. Such transactions are on substantially the same terms as those that would be available to unrelated third parties for comparable transactions. Leases The Firm’s leases are principally non-cancelable operating real estate leases. Balance Sheet Amounts Related to Leases $ in millions At Other assets—ROU assets $ 3,998 Other liabilities and accrued expenses—Lease liabilities 4,778 Weighted average: Remaining lease term, in years 9.7 Discount rate 3.6 % Lease Liabilities $ in millions At 2020 $ 763 2021 703 2022 646 2023 593 2024 524 Thereafter 2,845 Total undiscounted cash flows 6,074 Imputed interest (1,296 ) Amount on balance sheet $ 4,778 Committed leases not yet commenced $ 55 Lease Costs $ in millions 2019 Fixed costs $ 670 Variable costs 1 152 Less: Sublease income (6 ) Total lease cost, net $ 816 1. Includes common area maintenance charges and other variable costs not included in the measurement of ROU assets and lease liabilities. Cash Flows Statement Supplemental Information $ in millions 2019 Cash outflows—Lease liabilities $ 685 Non-cash—ROU assets recorded for new and modified leases 514 Minimum Future Lease Commitments (under Previous GAAP) $ in millions At 2019 $ 677 2020 657 2021 602 2022 555 2023 507 Thereafter 2,639 Total $ 5,637 Total minimum rental income to be received in the future under non-cancelable operating subleases $ 7 $ in millions 2018 2017 Rent expense 753 704 Occupancy lease agreements, in addition to base rentals, generally provide for rent and operating expense escalations resulting from increased assessments for real estate taxes and other charges. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits $ in millions At At Savings and demand deposits $ 149,465 $ 154,897 Time deposits 40,891 32,923 Total $ 190,356 $ 187,820 Deposits subject to FDIC insurance $ 149,966 $ 144,515 Time deposits that equal or exceed the FDIC insurance limit $ 12 $ 11 Time Deposit Maturities $ in millions At 2020 $ 20,481 2021 10,567 2022 3,507 2023 3,231 2024 2,465 Thereafter 640 Total $ 40,891 |
Borrowings and Other Secured Fi
Borrowings and Other Secured Financings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings and Other Secured Financings | Borrowings and Other Secured Financings Maturities and Terms of Borrowings Parent Company Subsidiaries At At $ in millions Fixed Rate Variable Rate 1 Fixed Rate Variable Rate 1 Original maturities of one year or less: Next 12 months 2 $ 500 $ — $ — $ 2,067 $ 2,567 $ 1,545 Original maturities greater than one year: 2019 $ — $ — $ — $ — $ — $ 24,694 2020 10,909 4,319 14 5,160 20,402 21,280 2021 13,616 7,823 18 4,628 26,085 24,642 2022 6,576 9,508 16 3,788 19,888 16,785 2023 8,632 3,147 14 2,822 14,615 13,938 2024 13,360 2,028 14 5,704 21,106 16,405 Thereafter 52,941 14,436 125 20,462 87,964 70,373 Total $ 106,034 $ 41,261 $ 201 $ 42,564 $ 190,060 $ 188,117 Total borrowings $ 106,534 $ 41,261 $ 201 $ 44,631 $ 192,627 $ 189,662 Weighted average coupon at period end 3 3.6 % 2.1 % 6.6 % N/M 3.4 % 3.5 % 1. Variable rate borrowings bear interest based on a variety of indices, including LIBOR, federal funds rates and SOFR. Amounts include notes carried at fair value with various payment provisions, including notes linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures, and instruments with various interest-rate-related features, including step-ups, step-downs and zero coupons. 2. The amount shown for the Parent Company represents amounts due to holders of the Firm's Series G preferred stock for which a notice of redemption was issued. See Note 16 for further information. 3. Only includes borrowings with original maturities greater than one year. Weighted average coupon is calculated utilizing U.S. and non-U.S. dollar interest rates and excludes financial instruments for which the fair value option was elected. Virtually all of the variable rate notes issued by subsidiaries are carried at fair value so a weighted average coupon is not meaningful. Borrowings with Original Maturities Greater than One Year $ in millions At At Senior $ 179,519 $ 178,027 Subordinated 10,541 10,090 Total $ 190,060 $ 188,117 Weighted average stated maturity, in years 6.9 6.5 Certain senior debt securities are denominated in various non-U.S. dollar currencies and may be structured to provide a return that is linked to equity, credit, commodity or other indices ( e.g. , the consumer price index). Senior debt also may be structured to be callable by the Firm or extendible at the option of holders of the senior debt securities. The Firm’s Borrowings also include notes carried and managed on a fair value basis. These include instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures, and instruments with various interest-rate-related features, including step-ups, step-downs and zero coupons. To minimize the exposure from such instruments, the Firm has entered into various swap contracts and purchased options that effectively convert the borrowing costs into floating rates. The swaps and purchased options used to economically hedge the embedded features are derivatives and also are carried at fair value. Changes in fair value related to the notes and economic hedges are reported in Trading revenues. See Notes 2 and 4 for further information on borrowings carried at fair value. Senior Debt Subject to Put Options or Liquidity Obligations $ in millions At At Put options embedded in debt agreements $ 290 $ 520 Liquidity obligations 1 $ 1,344 $ 1,284 1. Includes obligations to support secondary market trading. Subordinated Debt 2019 2018 Contractual weighted average coupon 4.5 % 4.5 % Subordinated debt generally is issued to meet the capital requirements of the Firm or its regulated subsidiaries and primarily is U.S. dollar denominated. Maturities of subordinated notes range from 2022 to 2027. Rates for Borrowings with Original Maturities Greater than One Year At December 31, 2019 2018 2017 Contractual weighted average coupon 1 3.4 % 3.5 % 3.3 % Effective weighted average coupon after swaps 2.9 % 3.6 % 2.5 % 1. Weighted average coupon was calculated utilizing U.S. and non-U.S. dollar interest rates and excludes financial instruments for which the fair value option was elected. In general, other than securities inventories and customer balances financed by secured funding sources, the majority of the Firm’s assets are financed with a combination of deposits, short-term funding, floating rate long-term debt or fixed rate long-term debt swapped to a floating rate. The Firm uses interest rate swaps to more closely match these borrowings to the duration, holding period and interest rate characteristics of the assets being funded and to manage interest rate risk. These swaps effectively convert certain of the Firm’s fixed rate borrowings into floating rate obligations. In addition, for non-U.S. dollar currency borrowings that are not used to fund assets in the same currency, the Firm has entered into currency swaps that effectively convert the borrowings into U.S. dollar obligations. The Firm’s use of swaps for asset and liability management affects its effective average borrowing rate. Other Secured Financings $ in millions At At Original maturities: One year or less 7,103 2,036 Greater than one year 6,480 6,772 Transfers of assets accounted for as secured financings 1,115 658 Total $ 14,698 $ 9,466 Maturities and Terms of Other Secured Financings At December 31, 2019 At $ in millions Fixed Rate Variable Rate 1 Total Original maturities of one year or less: Next 12 months $ 2,785 $ 4,318 $ 7,103 $ 2,036 Original maturities greater than one year: 2019 $ — $ — $ — $ 5,900 2020 764 899 1,663 599 2021 698 412 1,110 1 2022 227 — 227 86 2023 — 2,655 2,655 26 2024 — 12 12 12 Thereafter 356 457 813 148 Total $ 2,045 $ 4,435 $ 6,480 $ 6,772 Weighted average coupon at period-end 2 0.8 % 2.5 % 2.4 % 2.5 % 1. Variable rate other secured financings bear interest based on a variety of indices, including LIBOR and federal funds rates. Amounts include notes carried at fair value with various payment provisions, including notes linked to equity, credit, commodity or other indices. 2. Includes only other secured financings with original maturities greater than one year. Weighted average coupon is calculated utilizing U.S. and non-U.S. dollar interest rates and excludes other secured financings that are linked to non-interest indices and for which the fair value option was elected. Other secured financings include the liabilities related to certain ELNs, transfers of financial assets that are accounted for as financings rather than sales, pledged commodities, consolidated VIEs where the Firm is deemed to be the primary beneficiary and other secured borrowings. These liabilities are generally payable from the cash flows of the related assets accounted for as Trading assets. See Note 14 for further information on other secured financings related to VIEs and securitization activities. Maturities of Transfers of Assets Accounted for as Secured Financings 1 $ in millions At At 2019 $ — $ 40 2020 208 62 2021 225 29 2022 46 33 2023 334 — 2024 — — Thereafter 302 494 Total $ 1,115 $ 658 1. Excludes Securities sold under agreements to repurchase and Securities loaned. For transfers of assets that fail to meet accounting criteria for a sale, the Firm continues to record the assets and recognizes the associated liabilities in the balance sheets. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingencies | Commitments, Guarantees and Contingencies Commitments Years to Maturity at December 31, 2019 $ in millions Less than 1 1-3 3-5 Over 5 Total Lending: Corporate $ 23,507 $ 34,542 $ 47,924 $ 5,110 $ 111,083 Consumer 7,835 28 4 — 7,867 Residential and Commercial real estate 379 378 88 273 1,118 Forward-starting secured financing receivables 63,313 223 — 11,601 75,137 Underwriting 637 — — — 637 Investment activities 706 275 60 262 1,303 Letters of credit and other financial guarantees 186 2 — 2 190 Total $ 96,563 $ 35,448 $ 48,076 $ 17,248 $ 197,335 Corporate lending commitments participated to third parties $ 8,003 Forward-starting secured financing receivables settled within three business days of the balance sheet date $ 52,438 Since commitments associated with these instruments may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. Types of Commitments Lending Commitments . Lending commitments primarily represent the notional amount of legally binding obligations to provide funding to clients for different types of loan transactions. This category also includes commitments in loan form provided to clearinghouses or associated depositories of which the Firm is a member and are contingent upon the default of a clearinghouse member or other stress event. For syndications that are led by the Firm, the lending commitments accepted by the borrower but not yet closed are net of the amounts agreed to by counterparties that will participate in the syndication. For syndications that the Firm participates in and does not lead, lending commitments accepted by the borrower but not yet closed include only the amount that the Firm expects it will be allocated from the lead syndicate bank. Due to the nature of the Firm’s obligations under the commitments, these amounts include certain commitments participated to third parties. Forward-Starting Secured Financing Receivables . This amount includes securities purchased under agreements to resell and securities borrowed that the Firm has entered into prior to the balance sheet date that will settle after the balance sheet date. Also included are commitments to enter into securities purchased under agreements to resell that are provided to certain clearinghouses or associated depositories of which the Firm is a member and are contingent upon the default of a clearinghouse member or other stress event. These transactions are primarily secured by collateral from U.S. government agency securities and other sovereign government obligations when they are funded. Underwriting Commitments . The Firm provides underwriting commitments in connection with its capital raising sources to a diverse group of corporate and other institutional clients. Investment Activities . The Firm sponsors several non-consolidated investment management funds for third-party investors where it typically acts as general partner of, and investment advisor to, these funds and typically commits to invest a minority of the capital of such funds, with subscribing third-party investors contributing the majority. The Firm has contractual capital commitments, guarantees and counterparty arrangements with respect to these investment management funds. Letters of Credit and Other Financial Guarantees. The Firm has outstanding letters of credit and other financial guarantees issued by third-party banks to certain of the Firm’s counterparties. The Firm is contingently liable for these letters of credit and other financial guarantees, which are primarily used to provide collateral for securities and commodities traded and to satisfy various margin requirements in lieu of depositing cash or securities with these counterparties. Guarantees Obligations under Guarantee Arrangements at December 31, 2019 Maximum Potential Payout/Notional Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Credit derivatives $ 36,334 $ 37,080 $ 111,758 $ 30,547 $ 215,719 Other credit contracts — — — 117 117 Non-credit derivatives 1,590,947 1,240,195 393,248 699,043 3,923,433 Standby letters of credit and other financial guarantees issued 1 1,282 836 1,386 4,201 7,705 Market value guarantees 76 82 — — 158 Liquidity facilities 4,599 — — — 4,599 Whole loan sales guarantees — — — 23,196 23,196 Securitization representations and warranties — — — 67,928 67,928 General partner guarantees 59 128 12 71 270 Client clearing guarantees 18,565 — — — 18,565 $ in millions Carrying Amount Asset (Liability) Credit derivatives 2 $ 1,703 Other credit contracts (17 ) Non-credit derivatives 2 (45,794 ) Standby letters of credit and other financial guarantees issued 1 226 Market value guarantees — Liquidity facilities 6 Whole loan sales guarantees — Securitization representations and warranties 3 (42 ) General partner guarantees (42 ) Client clearing guarantees — 1. These amounts include certain issued standby letters of credit participated to third parties, totaling $0.7 billion of notional and collateral/recourse, due to the nature of the Firm’s obligations under these arrangements. 2. The carrying amounts of derivative contracts that meet the accounting definition of a guarantee are shown on a gross basis. 3. Primarily related to residential mortgage securitizations. Types of Guarantees Derivative Contracts. Certain derivative contracts meet the accounting definition of a guarantee, including certain written options, contingent forward contracts and CDS (see Note 5 regarding credit derivatives in which the Firm has sold credit protection to the counterparty). All derivative contracts that could meet this accounting definition of a guarantee are included in the previous table, with the notional amount used as the maximum potential payout for certain derivative contracts, such as written interest rate caps and written foreign currency options. The Firm evaluates collateral requirements for all derivatives, including derivatives that do not meet the accounting definition of a guarantee. For the effects of cash collateral and counterparty netting, see Note 5 . In certain situations, collateral may be held by the Firm for those contracts that meet the definition of a guarantee. Generally, the Firm sets collateral requirements by counterparty so that the collateral covers various transactions and products and is not allocated specifically to individual contracts. Also, the Firm may recover amounts related to the underlying asset delivered to the Firm under the derivative contract. Standby Letters of Credit and Other Financial Guarantees Issued. In connection with its corporate lending business and other corporate activities, the Firm provides standby letters of credit and other financial guarantees to counterparties. Such arrangements represent obligations to make payments to third parties if the counterparty fails to fulfill its obligation under a borrowing arrangement or other contractual obligation. A majority of the Firm’s standby letters of credit are provided on behalf of counterparties that are investment grade. If the counterparty fails to fulfill its contractual obligation, the Firm has access to collateral or recourse that would approximate its obligation. Market Value Guarantees. Market value guarantees are issued to guarantee timely payment of a specified return to investors in certain affordable housing tax credit funds. These guarantees are designed to return an investor’s contribution to a fund and the investor’s share of tax losses and tax credits expected to be generated by a fund. Liquidity Facilities. The Firm has entered into liquidity facilities with SPEs and other counterparties, whereby the Firm is required to make certain payments if losses or defaults occur. Primarily, the Firm acts as liquidity provider to municipal bond securitization SPEs and for standalone municipal bonds in which the holders of beneficial interests issued by these SPEs or the holders of the individual bonds, respectively, have the right to tender their interests for purchase by the Firm on specified dates at a specified price. The Firm often may have recourse to the underlying assets held by the SPEs in the event payments are required under such liquidity facilities, as well as make-whole or recourse provisions with the trust sponsors. The recourse amount often exceeds the maximum potential payout amount of the guarantee. Substantially all of the underlying assets in the SPEs are investment grade. Liquidity facilities provided to municipal tender option bond trusts are classified as derivatives. Whole Loan Sales Guarantees. The Firm has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain whole loan sales. Under certain circumstances, the Firm may be required to repurchase such assets or make other payments related to such assets if such representations and warranties are breached. The Firm’s maximum potential payout related to such representations and warranties is equal to the current UPB of such loans. Since the Firm no longer services these loans, it has no information on the current UPB of those loans, and accordingly, the amount included in the previous table represents the UPB at the time of the whole loan sale or at the time when the Firm last serviced any of those loans. The current UPB balances could be substantially lower than the maximum potential payout amount included in the previous table. The related liability primarily relates to sales of loans to the federal mortgage agencies. Securitization Representations and Warranties. As part of the Firm’s Institutional Securities business segment’s securitizations and related activities, the Firm has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Firm. The extent and nature of the representations and warranties, if any, vary among different securitizations. Under certain circumstances, the Firm may be required to repurchase certain assets or make other payments related to such assets if such representations and warranties are breached. The maximum potential amount of future payments the Firm could be required to make would be equal to the current outstanding balances of, or losses associated with, the assets subject to breaches of such representations and warranties. The amount included in the previous table for the maximum potential payout includes the current UPB or historical losses where known, and the UPB at the time of sale when the current UPB is not known. General Partner Guarantees. As a general partner in certain investment management funds, the Firm receives certain distributions from the partnerships when the return exceeds specified performance targets according to the provisions of the partnership agreements. The Firm may be required to return all or a portion of such distributions to the limited partners in the event the limited partners do not achieve a certain return as specified in the various partnership agreements, subject to certain limitations. Client Clearing Guarantees. In 2019, the Firm became a sponsoring member of the Government Securities Division of the FICC's Sponsored Clearing Model. Clients of the Firm, as sponsored members, can transact in overnight securities repurchase and resale agreements, which are cleared through FICC. As sponsoring member, the Firm guarantees to FICC the prompt and full payment and performance of its clients’ obligations. The amount included in the previous table represents the maximum potential payout the Firm could be responsible for through the guarantee it provides. The Firm minimizes credit exposure under this guarantee by obtaining a security interest in its sponsored member clients’ collateral and their contractual rights under sponsored member transactions. Therefore, the Firm's exposure is estimated to be an amount substantially lower than the maximum potential payout amount. The collateral amount in which the Firm has a security interest is approximately equal to the maximum potential payout amount of the guarantee. Other Guarantees and Indemnities In the normal course of business, the Firm provides guarantees and indemnifications in a variety of transactions. These provisions generally are standard contractual terms. Certain of these guarantees and indemnifications are described below: • Indemnities. The Firm provides standard indemnities to counterparties for certain contingent exposures and taxes, including U.S. and foreign withholding taxes, on interest and other payments made on derivatives, securities and stock lending transactions, certain annuity products and other financial arrangements. These indemnity payments could be required based on a change in the tax laws, a change in interpretation of applicable tax rulings or a change in factual circumstances. Certain contracts contain provisions that enable the Firm to terminate the agreement upon the occurrence of such events. The maximum potential amount of future payments that the Firm could be required to make under these indemnifications cannot be estimated. • Exchange/Clearinghouse Member Guarantees. The Firm is a member of various exchanges and clearinghouses that trade and clear securities and/or derivative contracts. Associated with its membership, the Firm may be required to pay a certain amount as determined by the exchange or the clearinghouse in case of a default of any of its members or pay a proportionate share of the financial obligations of another member that may default on its obligations to the exchange or the clearinghouse. While the rules governing different exchange or clearinghouse memberships and the forms of these guarantees may vary, in general the Firm’s obligations under these rules would arise only if the exchange or clearinghouse had previously exhausted its resources. In addition, some clearinghouse rules require members to assume a proportionate share of losses resulting from the clearinghouse’s investment of guarantee fund contributions and initial margin, and of other losses unrelated to the default of a clearing member, if such losses exceed the specified resources allocated for such purpose by the clearinghouse. The maximum potential payout under these rules cannot be estimated. The Firm has not recorded any contingent liability in its financial statements for these agreements and believes that any potential requirement to make payments under these agreements is remote. • Merger and Acquisition Guarantees. The Firm may, from time to time, in its role as investment banking advisor be required to provide guarantees in connection with certain European merger and acquisition transactions. If required by the regulating authorities, the Firm provides a guarantee that the acquirer in the merger and acquisition transaction has or will have sufficient funds to complete the transaction and would then be required to make the acquisition payments in the event the acquirer’s funds are insufficient at the completion date of the transaction. These arrangements generally cover the time frame from the transaction offer date to its closing date and, therefore, are generally short term in nature. The Firm believes the likelihood of any payment by the Firm under these arrangements is remote given the level of its due diligence in its role as investment banking advisor. In addition, in the ordinary course of business, the Firm guarantees the debt and/or certain trading obligations (including obligations associated with derivatives, foreign exchange contracts and the settlement of physical commodities) of certain subsidiaries. These guarantees generally are entity or product specific and are required by investors or trading counterparties. The activities of the Firm’s subsidiaries covered by these guarantees (including any related debt or trading obligations) are included in the financial statements. Contingencies Legal In addition to the matters described below, in the normal course of business, the Firm has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with its activities as a global diversified financial services institution. Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the entities that would otherwise be the primary defendants in such cases are bankrupt or are in financial distress. These actions have included, but are not limited to, residential mortgage and credit crisis-related matters. While the Firm has identified below any individual proceedings where the Firm believes a material loss to be reasonably possible and reasonably estimable, there can be no assurance that material losses will not be incurred from claims that have not yet been asserted or are not yet determined to be probable or possible and reasonably estimable losses. The Firm contests liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the financial statements and the Firm can reasonably estimate the amount of that loss, the Firm accrues the estimated loss by a charge to income. $ in millions 2019 2018 2017 Legal expenses $ 221 $ 206 $ 342 The Firm’s future legal expenses may fluctuate from period to period, given the current environment regarding government investigations and private litigation affecting global financial services firms, including the Firm. In many proceedings and investigations, however, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount of any loss. In addition, even where a loss is possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss. For certain legal proceedings and investigations, the Firm cannot reasonably estimate such losses, particularly for proceedings and investigations where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, disgorgement or penalties. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, determination of issues related to class certification and the calculation of damages or other relief, and by addressing novel or unsettled legal questions relevant to the proceedings or investigations in question, before a loss or additional loss or range of loss or additional range of loss can be reasonably estimated for a proceeding or investigation. For certain other legal proceedings and investigations, the Firm can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued but does not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on the Firm’s financial statements as a whole, other than the matters referred to in the following paragraphs. On July 15, 2010 , China Development Industrial Bank (“CDIB”) filed a complaint against the Firm , styled China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. , which is pending in the Supreme Court of the State of New York, New York County ("Supreme Court of NY”) . The complaint relates to a $275 million CDS referencing the super senior portion of the STACK 2006-1 CDO. The complaint asserts claims for common law fraud, fraudulent inducement and fraudulent concealment and alleges that the Firm misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that the Firm knew that the assets backing the CDO were of poor quality when it entered into the CDS with CDIB. The complaint seeks compensatory damages related to the approximately $228 million that CDIB alleges it has already lost under the CDS, rescission of CDIB’s obligation to pay an additional $12 million, punitive damages, equitable relief, fees and costs. On February 28, 2011, the court denied the Firm’s motion to dismiss the complaint. On December 21, 2018, the court denied the Firm’s motion for summary judgment and granted in part the Firm’s motion for sanctions relating to spoliation of evidence. On January 24, 2019, CDIB filed a notice of appeal from the court’s December 21, 2018 order, and on January 25, 2019, the Firm filed a notice of appeal from the same order. On March 7, 2019, the court denied the relief that CDIB sought in a motion to clarify and resettle the portion of the court’s December 21, 2018 order granting spoliation sanctions. On December 5, 2019, the Appellate Division, First Department (“First Department”) heard the parties’ cross appeals. Based on currently available information, the Firm believes it could incur a loss in this action of up to approximately $240 million plus pre- and post-judgment interest, fees and costs. On July 8, 2013 , U.S. Bank National Association , in its capacity as trustee, filed a complaint against the Firm styled U.S. Bank National Association, solely in its capacity as Trustee of the Morgan Stanley Mortgage Loan Trust 2007 -2 AX (MSM 2007 -2 AX) v. Morgan Stanley Mortgage Capital Holdings LLC, Successor-by-Merger to Morgan Stanley Mortgage Capital Inc. and GreenPoint Mortgage Funding, Inc. , pending in the Supreme Court of NY . The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original principal balance of approximately $650 million, breached various representations and warranties. The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, unspecified damages and interest. On November 24, 2014, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. On April 4, 2019, the court denied the Firm’s motion to renew its motion to dismiss. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $240 million , the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands that it did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On September 23, 2014, Financial Guaranty Insurance Company (“FGIC”) filed a complaint against the Firm in the Supreme Court of NY styled Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. relating to the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4. The complaint asserts claims for breach of contract and fraudulent inducement and alleges, among other things, that the loans in the trust breached various representations and warranties and defendants made untrue statements and material omissions to induce FGIC to issue a financial guaranty policy on certain classes of certificates that had an original balance of approximately $876 million . The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, compensatory, consequential and punitive damages, attorneys’ fees and interest. On January 23, 2017, the court denied the Firm’s motion to dismiss the complaint. On September 13, 2018, the First Department affirmed in part and reversed in part the lower court’s order denying the Firm’s motion to dismiss. On December 20, 2018, the First Department denied plaintiff’s motion for leave to appeal its decision to the New York Court of Appeals ("Court of Appeals") or, in the alternative, for re-argument. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $277 million , the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands from a certificate holder and FGIC that the Firm did not repurchase, plus pre- and post- judgment interest, fees and costs, as well as claim payments that FGIC has made and will make in the future. In addition, plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On January 23, 2015, Deutsche Bank National Trust Company, in its capacity as trustee, filed a complaint against the Firm styled Deutsche Bank National Trust Company solely in its capacity as Trustee of the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 v. Morgan Stanley Mortgage Capital Holdings LLC as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc., and Morgan Stanley ABS Capital I Inc. , pending in the Supreme Court of NY. The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original principal balance of approximately $1.05 billion , breached various representations and warranties. The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, compensatory, consequential, rescissory, equitable and punitive damages, attorneys’ fees, costs and other related expenses, and interest. On December 11, 2015, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. On October 19, 2018, the court granted the Firm’s motion for leave to amend its answer and to stay the case pending resolution of Deutsche Bank National Trust Company’s appeal to the Court of Appeals in another case, styled Deutsche Bank National Trust Company v. Barclays Bank PLC , regarding the applicable statute of limitations. On January 17, 2019, the First Department reversed the trial court’s order to the extent that it had granted in part the Firm’s motion to dismiss the complaint. On June 4, 2019, the First Department granted the Firm’s motion for leave to appeal to the Court of Appeals. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $277 million , the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands from a certificate holder and a monoline insurer that the Firm did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. Tax In matters styled Case number 15 / 3637 and Case number 15 / 4353 , the Dutch Tax Authority (“Dutch Authority”) has challenged, in the District Court in Amsterdam , the prior set-off by the Firm of approximately €124 million (approximately $139 million) plus accrued interest of withholding tax credits against the Firm’s corporation tax liabilities for the tax years 2007 to 2013. The Dutch Authority alleges that the Firm was not entitled to receive the withholding tax credits on the basis, inter alia, that a Firm subsidiary did not hold legal title to certain securities subject to withholding tax on the relevant dates. The Dutch Authority has also alleged that the Firm failed to provide certain information to the Dutch Authority and keep adequate books and records. On April 26, 2018, the District Court in Amsterdam issued a decision dismissing the Dutch Authority’s claims. On June 4, 2018, the Dutch Authority filed an appeal before the Court of Appeal in Amsterdam in matters re-styled Case number 18 /00 318 and Case number 18 /00 319 . On June 26 and July 2, 2019, a hearing of the Dutch Authority’s appeal was held. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately € 124 million (approximately $139 million ) plus accrued interest. |
Variable Interest Entities and
Variable Interest Entities and Securitization Activities | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities and Securitization Activities [Abstract] | |
Variable Interest Entities and Securitization Activities | Variable Interest Entities and Securitization Activities Overview The Firm is involved with various SPEs in the normal course of business. In most cases, these entities are deemed to be VIEs. The Firm’s variable interests in VIEs include debt and equity interests, commitments, guarantees, derivative instruments and certain fees. The Firm’s involvement with VIEs arises primarily from: • Interests purchased in connection with market-making activities, securities held in its Investment securities portfolio and retained interests held as a result of securitization activities, including re-securitization transactions. • Guarantees issued and residual interests retained in connection with municipal bond securitizations. • Loans made to and investments in VIEs that hold debt, equity, real estate or other assets. • Derivatives entered into with VIEs. • Structuring of CLNs or other asset-repackaged notes designed to meet the investment objectives of clients. • Other structured transactions designed to provide tax-efficient yields to the Firm or its clients. The Firm determines whether it is the primary beneficiary of a VIE upon its initial involvement with the VIE and reassesses whether it is the primary beneficiary on an ongoing basis as long as it has any continuing involvement with the VIE. This determination is based upon an analysis of the design of the VIE, including the VIE’s structure and activities, the power to make significant economic decisions held by the Firm and by other parties, and the variable interests owned by the Firm and other parties. The power to make the most significant economic decisions may take a number of different forms in different types of VIEs. The Firm considers servicing or collateral management decisions as representing the power to make the most significant economic decisions in transactions such as securitizations or CDOs. As a result, the Firm does not consolidate securitizations or CDOs for which it does not act as the servicer or collateral manager unless it holds certain other rights to replace the servicer or collateral manager or to require the liquidation of the entity. If the Firm serves as servicer or collateral manager, or has certain other rights described in the previous sentence, the Firm analyzes the interests in the VIE that it holds and consolidates only those VIEs for which it holds a potentially significant interest in the VIE. For many transactions, such as re-securitization transactions, CLNs and other asset-repackaged notes, there are no significant economic decisions made on an ongoing basis. In these cases, the Firm focuses its analysis on decisions made prior to the initial closing of the transaction and at the termination of the transaction. The Firm concluded in most of these transactions that decisions made prior to the initial closing were shared between the Firm and the initial investors based upon the nature of the assets, including whether the assets were issued in a transaction sponsored by the Firm and the extent of the information available to the Firm and to investors, the number, nature and involvement of investors, other rights held by the Firm and investors, the standardization of the legal documentation and the level of continuing involvement by the Firm, including the amount and type of interests owned by the Firm and by other investors. The Firm focused its control decision on any right held by the Firm or investors related to the termination of the VIE. Most re-securitization transactions, CLNs and other asset-repackaged notes have no such termination rights. Consolidated VIE Assets and Liabilities by Type of Activity At December 31, 2019 At December 31, 2018 $ in millions VIE Assets VIE Liabilities VIE Assets VIE Liabilities OSF $ 696 $ 391 $ 267 $ — MABS 1 265 4 59 38 Other 2 987 66 809 48 Total $ 1,948 $ 461 $ 1,135 $ 86 OSF—Other structured financings 1. Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets. and may be in loan or security form. The value of assets is determined based on the fair value of the liabilities and the interests owned by the Firm in such VIEs as the fair values for the liabilities and interests owned are more observable. 2. Other primarily includes operating entities, investment funds and structured transactions. Consolidated VIE Assets and Liabilities by Balance Sheet Caption $ in millions At At Assets Cash and cash equivalents: Cash and due from banks $ 315 $ 77 Restricted cash 173 171 Trading assets at fair value 943 314 Customer and other receivables 18 25 Goodwill — 18 Intangible assets 111 128 Other assets 388 402 Total $ 1,948 $ 1,135 Liabilities Other secured financings $ 422 $ 64 Other liabilities and accrued expenses 39 22 Total $ 461 $ 86 Noncontrolling interests $ 192 $ 106 Consolidated VIE assets and liabilities are presented in the previous tables after intercompany eliminations. Generally, most assets owned by consolidated VIEs cannot be removed unilaterally by the Firm and are not available to the Firm while the related liabilities issued by consolidated VIEs are non-recourse to the Firm. However, in certain consolidated VIEs, the Firm either has the unilateral right to remove assets or provides additional recourse through derivatives such as total return swaps, guarantees or other forms of involvement. In general, the Firm’s exposure to loss in consolidated VIEs is limited to losses that would be absorbed on the VIE net assets recognized in its financial statements, net of amounts absorbed by third-party variable interest holders. Non-consolidated VIEs At December 31, 2019 $ in millions MABS 1 CDO MTOB OSF Other 2 VIE assets (UPB) $ 125,603 $ 2,976 $ 6,965 $ 2,288 $ 51,305 Maximum exposure to loss 3 Debt and equity interests $ 16,314 $ 240 $ — $ 1,009 $ 11,977 Derivative and other contracts — — 4,599 — 2,995 Commitments, guarantees and other 631 — — — 266 Total $ 16,945 $ 240 $ 4,599 $ 1,009 $ 15,238 Carrying value of variable interests—Assets Debt and equity interests $ 16,314 $ 240 $ — $ 1,008 $ 11,977 Derivative and other contracts — — 6 — 388 Total $ 16,314 $ 240 $ 6 $ 1,008 $ 12,365 Additional VIE assets owned 4 $ 11,453 Carrying value of variable interests—Liabilities Derivative and other contracts $ — $ — $ — $ — $ 444 At December 31, 2018 5 $ in millions MABS 1 CDO MTOB OSF Other 2 VIE assets (UPB) $ 106,197 $ 10,848 $ 7,014 $ 3,314 $ 38,603 Maximum exposure to loss 3 Debt and equity interests $ 15,671 $ 1,169 $ — $ 1,622 $ 7,967 Derivative and other contracts — — 4,449 — 1,768 Commitments, guarantees and other 1,073 3 — 235 509 Total $ 16,744 $ 1,172 $ 4,449 $ 1,857 $ 10,244 Carrying value of variable interests—Assets Debt and equity interests $ 15,671 $ 1,169 $ — $ 1,205 $ 7,967 Derivative and other contracts — — 6 — 87 Total $ 15,671 $ 1,169 $ 6 $ 1,205 $ 8,054 Additional VIE assets owned 4 $ 12,059 Carrying value of variable interests—Liabilities Derivative and other contracts $ — $ — $ — $ — $ 185 MTOB—Municipal tender option bonds 1. Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets. and may be in loan or security form. 2. Other primarily includes exposures to commercial real estate property and investment funds. 3. Where notional amounts are utilized in quantifying the maximum exposure related to derivatives, such amounts do not reflect changes in fair value recorded by the Firm. 4. Additional VIE assets owned represents the carrying value of total exposure to non-consolidated VIEs for which the maximum exposure to loss is less than specific thresholds, primarily interests issued by securitization SPEs. The Firm’s primary risk exposure is to the most subordinate class of beneficial interest and maximum exposure to loss generally equals the fair value of the assets owned. These assets are primarily included in Trading assets and Investment securities and are measured at fair value (see Note 3 ). The Firm does not provide additional support in these transactions through contractual facilities, guarantees or similar derivatives. 5. The carrying value and maximum exposure to loss of variable interests related to MABS and Other have been revised to reflect the addition of approximately $11 billion in loans to VIEs that were previously excluded. The VIE asset (UPB) amounts have also been revised by approximately $54 billion . This disclosure-only revision did not impact the Firm's balance sheets. The majority of the VIEs included in the previous tables are sponsored by unrelated parties; examples of the Firm’s involvement with these VIEs include its secondary market-making activities and the securities held in its Investment securities portfolio (see Note 6 ). The Firm’s maximum exposure to loss is dependent on the nature of the Firm’s variable interest in the VIE and is limited to the notional amounts of certain liquidity facilities and other credit support, total return swaps and written put options, as well as the fair value of certain other derivatives and investments the Firm has made in the VIE. The Firm’s maximum exposure to loss in the previous tables does not include the offsetting benefit of hedges or any reductions associated with the amount of collateral held as part of a transaction with the VIE or any party to the VIE directly against a specific exposure to loss. Liabilities issued by VIEs generally are non-recourse to the Firm. Detail of Mortgage- and Asset-Backed Securitization Assets At December 31, 2019 At December 31, 2018 1 $ in millions UPB Debt and Equity Interests UPB Debt and Equity Interests Residential mortgages $ 30,353 $ 3,993 $ 27,594 $ 4,581 Commercial mortgages 53,892 3,881 55,501 4,327 U.S. agency collateralized mortgage obligations 36,366 6,365 14,969 3,443 Other consumer or commercial loans 4,992 2,075 8,133 3,320 Total $ 125,603 $ 16,314 $ 106,197 $ 15,671 1. The balances as of December 31, 2018 were revised as noted in the Non-consolidated VIEs table herein. Securitization Activities In a securitization transaction, the Firm transfers assets (generally commercial or residential mortgage loans or securities) to an SPE, sells to investors most of the beneficial interests, such as notes or certificates, issued by the SPE, and, in many cases, retains other beneficial interests. The purchase of the transferred assets by the SPE is financed through the sale of these interests. In many securitization transactions involving commercial mortgage loans, the Firm transfers a portion of the assets to the SPE with unrelated parties transferring the remaining assets. In addition, mainly in securitization transactions involving residential mortgage loans, the Firm may also enter into derivative transactions, primarily interest rate swaps or interest rate caps, with the SPE. Although not obligated, the Firm generally makes a market in the securities issued by SPEs in securitization transactions. As a market maker, the Firm offers to buy these securities from, and sell these securities to, investors. Securities purchased through these market-making activities are not considered to be retained interests; these beneficial interests generally are included in Trading assets—Corporate and other debt and are measured at fair value. The Firm enters into derivatives, generally interest rate swaps and interest rate caps, with a senior payment priority in many securitization transactions. The risks associated with these and similar derivatives with SPEs are essentially the same as similar derivatives with non-SPE counterparties and are managed as part of the Firm’s overall exposure. See Note 5 for further information on derivative instruments and hedging activities. Investment Securities The Firm holds securities issued by VIEs within the Investment securities portfolio. These securities are composed of those related to transactions sponsored by the federal mortgage agencies and predominantly the most senior securities issued by VIEs backed by student loans and commercial mortgage loans. Transactions sponsored by the federal mortgage agencies include an explicit or implicit guarantee provided by the U.S. government. Additionally, the Firm holds certain commercial mortgage-backed securities issued by VIEs retained as a result of the Firm's securitization activities. See Note 6 for further information on the Investment securities portfolio. Municipal Tender Option Bond Trusts In a municipal tender option bond trust transaction, the client transfers a municipal bond to a trust. The trust issues short-term securities that the Firm, as the remarketing agent, sells to investors. The client generally retains a residual interest. The short-term securities are supported by a liquidity facility pursuant to which the investors may put their short-term interests. In most programs, a third-party provider will provide such liquidity facility; in some programs, the Firm provides this liquidity facility. The Firm may, in lieu of purchasing short-term securities for remarketing, decide to extend a temporary loan to the trust. The client can generally terminate the transaction at any time. The liquidity provider can generally terminate the transaction upon the occurrence of certain events. When the transaction is terminated, the municipal bond is generally sold or returned to the client. Any losses suffered by the liquidity provider upon the sale of the bond are the responsibility of the client. This obligation is generally collateralized. Liquidity facilities provided to municipal tender option bond trusts are classified as derivatives. The Firm consolidates any municipal tender option bond trusts in which it holds the residual interest. Credit Protection Purchased through Credit-Linked Notes CLN transactions are designed to provide investors with exposure to certain credit risk on referenced assets. In these transactions, the Firm transfers assets (generally high-quality securities or money market investments) to an SPE, enters into a derivative transaction in which the SPE sells protection on an unrelated referenced asset or group of assets, through a credit derivative, and sells the securities issued by the SPE to investors. In some transactions, the Firm may also enter into interest rate or currency swaps with the SPE. Depending on the structure, the assets and liabilities of the SPE may be consolidated and recognized in the Firm’s balance sheets or accounted for as a sale of assets. Upon the occurrence of a credit event related to the referenced asset, the SPE will deliver securities collateral as payment to the Firm, which exposes the Firm to changes in the collateral’s value. Derivative payments by the SPE are collateralized. The risks associated with these and similar derivatives with SPEs are essentially the same as those with non-SPE counterparties and are managed as part of the Firm’s overall exposure. Other Structured Financings The Firm invests in interests issued by entities that develop and own low-income communities (including low-income housing projects) and entities that construct and own facilities that will generate energy from renewable resources. The interests entitle the Firm to a share of tax credits and tax losses generated by these projects. In addition, the Firm has issued guarantees to investors in certain low-income housing funds. The guarantees are designed to return an investor’s contribution to a fund and the investor’s share of tax losses and tax credits expected to be generated by the fund. The Firm is also involved with entities designed to provide tax-efficient yields to the Firm or its clients. Collateralized Loan and Debt Obligations CLOs and CDOs are SPEs that purchase a pool of assets consisting of corporate loans, corporate bonds, ABS or synthetic exposures on similar assets through derivatives, and issue multiple tranches of debt and equity securities to investors. The Firm underwrites the securities issued in certain CLO transactions on behalf of unaffiliated sponsors and provides advisory services to these unaffiliated sponsors. The Firm sells corporate loans to many of these SPEs, in some cases representing a significant portion of the total assets purchased. Although not obligated, the Firm generally makes a market in the securities issued by SPEs in these transactions and may retain unsold securities. These beneficial interests are included in Trading assets and are measured at fair value. Equity-Linked Notes ELN transactions are designed to provide investors with exposure to certain risks related to the specific equity security, equity index or other index. In an ELN transaction, the Firm typically transfers to an SPE either a note issued by the Firm, the payments on which are linked to the performance of a specific equity security, equity index or other index, or debt securities issued by other companies and a derivative contract, the terms of which will relate to the performance of a specific equity security, equity index or other index. These ELN transactions with SPEs were not consolidated at December 31, 2019 or December 31, 2018 . Transferred Assets with Continuing Involvement 1 At December 31, 2019 2 $ in millions RML CML U.S. Agency CMO CLN and Other 3 SPE assets (UPB) 4 $ 9,850 $ 86,203 $ 19,132 $ 8,410 Retained interests Investment grade $ 29 $ 720 $ 2,376 $ 1 Non-investment grade 17 254 — 92 Total $ 46 $ 974 $ 2,376 $ 93 Interests purchased in the secondary market Investment grade $ 6 $ 197 $ 77 $ — Non-investment grade 75 51 — — Total $ 81 $ 248 $ 77 $ — Derivative assets $ — $ — $ — $ 339 Derivative liabilities — — — 145 December 31, 2018 $ in millions RML CML U.S. Agency CMO CLN and Other 3 SPE assets (UPB) 4 $ 14,376 $ 68,593 $ 16,594 $ 14,608 Retained interests Investment grade $ 17 $ 483 $ 1,573 $ 3 Non-investment grade 4 212 — 210 Total $ 21 $ 695 $ 1,573 $ 213 Interests purchased in the secondary market Investment grade $ 7 $ 91 $ 102 $ — Non-investment grade 28 71 — — Total $ 35 $ 162 $ 102 $ — Derivative assets $ — $ — $ — $ 216 Derivative liabilities — — — 178 Fair Value at December 31, 2019 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 2,401 $ 4 $ 2,405 Non-investment grade 6 97 103 Total $ 2,407 $ 101 $ 2,508 Interests purchased in the secondary market Investment grade $ 278 $ 2 $ 280 Non-investment grade 68 58 126 Total $ 346 $ 60 $ 406 Derivative assets $ 337 $ 2 $ 339 Derivative liabilities 144 1 145 Fair Value at December 31, 2018 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 1,580 $ 13 $ 1,593 Non-investment grade 174 252 426 Total $ 1,754 $ 265 $ 2,019 Interests purchased in the secondary market Investment grade $ 193 $ 7 $ 200 Non-investment grade 83 16 99 Total $ 276 $ 23 $ 299 Derivative assets $ 121 $ 95 $ 216 Derivative liabilities 175 3 178 RML—Residential mortgage loans CML—Commercial mortgage loans 1. The Transferred Assets with Continuing Involvement tables include transactions with SPEs in which the Firm, acting as principal, transferred financial assets with continuing involvement and received sales treatment. See Note 12 for information on certain other transfers of assets to SPEs which are accounted for as financings. 2. As permitted by applicable guidance, certain transfers of assets where the Firm’s only continuing involvement is a derivative are only reported in the following Assets Sold with Retained Exposure table, and are no longer also included in this table. At December 31, 2018 these transactions were included in CLN and Other and comprised approximately $8 billion in UPB, $20 million in Derivative assets and $119 million in Derivative liabilities. 3. Amounts include CLO transactions managed by unrelated third parties. 4. Amounts include assets transferred by unrelated transferors. Transferred assets are carried at fair value prior to securitization, and any changes in fair value are recognized in the income statements. The Firm may act as underwriter of the beneficial interests issued by these securitization vehicles, for which Investment banking revenues are recognized. The Firm may retain interests in the securitized financial assets as one or more tranches of the securitization. These retained interests are generally carried at fair value in the balance sheets with changes in fair value recognized in the income statements. Fair value for these interests is measured using techniques that are consistent with the valuation techniques applied to the Firm’s major categories of assets and liabilities as described in Notes 2 and 3. Proceeds from New Securitization Transactions and Sales of Loans $ in millions 2019 2018 2017 New transactions 1 $ 34,464 $ 23,821 $ 23,939 Retained interests 7,403 2,904 2,337 Sales of corporate loans to CLO SPEs 1, 2 2 317 191 1. Net gains on new transactions and sales of corporate loans to CLO entities at the time of the sale were not material for all periods presented. 2. Sponsored by non-affiliates. The Firm has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Firm (see Note 13 ). Assets Sold with Retained Exposure $ in millions December 31, 2019 December 31, 2018 Gross cash proceeds from sale of assets 1 $ 38,661 $ 27,121 Fair value Assets sold $ 39,137 $ 26,524 Derivative assets recognized 647 164 Derivative liabilities recognized 152 763 1. The carrying value of assets derecognized at the time of sale approximates gross cash proceeds. The Firm enters into transactions in which it sells securities, primarily equities, and contemporaneously enters into bilateral OTC derivatives with the purchasers of the securities, through which it retains exposure to the sold securities. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2019 | |
Brokers and Dealers [Abstract] | |
Regulatory Requirements | Regulatory Requirements Regulatory Capital Framework The Firm is an FHC under the Bank Holding Company Act of 1956, as amended, and is subject to the regulation and oversight of the Board of Governors of the Federal Reserve System (“Federal Reserve”). The Federal Reserve establishes capital requirements for the Firm, including well-capitalized standards, and evaluates the Firm’s compliance with such capital requirements. The OCC establishes similar capital requirements and standards for MSBNA and MSPBNA (collectively, the “U.S. Bank Subsidiaries”). The regulatory capital requirements are largely based on the Basel III capital standards established by the Basel Committee on Banking Supervision and also implement certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Regulatory Capital Requirements The Firm is required to maintain minimum risk-based and leverage-based capital ratios under regulatory capital requirements. A summary of the calculations of regulatory capital, RWA and transition provisions follows. Minimum risk-based capital ratio requirements apply to Common Equity Tier 1 capital, Tier 1 capital and Total capital (which includes Tier 2 capital). Capital standards require certain adjustments to, and deductions from, capital for purposes of determining these ratios. In addition to the minimum risk-based capital ratio requirements, the Firm is subject to the following buffers: • A greater than 2.5% Common Equity Tier 1 capital conservation buffer; • The Common Equity Tier 1 G-SIB capital surcharge, currently at 3% ; and • Up to a 2.5% Common Equity Tier 1 CCyB, currently set by U.S. banking agencies at zero. In 2018 , the requirement for each of these buffers was 75% of the fully phased-in 2019 requirement noted above. Risk-Weighted Assets RWA reflects both the Firm’s on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following: • Credit risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to the Firm; • Market risk: Adverse changes in the level of one or more market prices, rates, indices, volatilities, correlations or other market factors, such as market liquidity; and • Operational risk: Inadequate or failed processes or systems, from human factors or from external events ( e.g. , fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets). The Firm’s risk-based capital ratios for purposes of determining regulatory compliance are the lower of the capital ratios computed under (i) the standardized approaches for calculating credit risk and market risk RWA (“Standardized Approach”) and (ii) the applicable advanced approaches for calculating credit risk, market risk and operational risk RWA (“Advanced Approach”). At December 31, 2019 and December 31, 2018 , the Firm’s risk-based capital ratios are based on the Standardized Approach rules. Minimum leverage-based capital requirements include a Tier 1 leverage ratio and an SLR. The Firm is required to maintain a Tier 1 SLR of 5% , inclusive of an enhanced SLR capital buffer of at least 2% . The Firm’s Regulatory Capital and Capital Ratios At December 31, 2019 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 10.0 % $ 64,751 16.4 % Tier 1 capital 11.5 % 73,443 18.6 % Total capital 13.5 % 82,708 21.0 % Total RWA 394,177 Leverage-based capital Tier 1 leverage 4.0 % $ 73,443 8.3 % Adjusted average assets 2 889,195 SLR 5.0 % 73,443 6.4 % Supplementary leverage exposure 3 1,155,177 At December 31, 2018 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 8.6 % $ 62,086 16.9 % Tier 1 capital 10.1 % 70,619 19.2 % Total capital 12.1 % 80,052 21.8 % Total RWA 367,309 Leverage-based capital Tier 1 leverage 4.0 % $ 70,619 8.4 % Adjusted average assets 2 843,074 SLR 5.0 % 70,619 6.5 % Supplementary leverage exposure 3 1,092,672 1. Required ratios are inclusive of any buffers applicable as of the date presented. For 2018, the required regulatory capital ratios for risk-based capital are under the transitional rules. Failure to maintain the buffers would result in restrictions on the Firm’s ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. 2. Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in the Firm's own capital instruments, certain defined tax assets and other capital deductions. 3. Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures. U.S. Bank Subsidiaries’ Regulatory Capital and Capital Ratios The OCC establishes capital requirements for the Firm’s U.S. Bank Subsidiaries and evaluates their compliance with such capital requirements. Regulatory capital requirements for the U.S. Bank Subsidiaries are calculated in a similar manner to the Firm’s regulatory capital requirements, although G-SIB capital surcharge requirements do not apply to the U.S. Bank Subsidiaries. The OCC’s regulatory capital framework includes Prompt Corrective Action (“PCA”) standards, including “well-capitalized” PCA standards that are based on specified regulatory capital ratio minimums. For the Firm to remain an FHC, the U.S. Bank Subsidiaries must remain well-capitalized in accordance with the OCC’s PCA standards. In addition, failure by the U.S. Bank Subsidiaries to meet minimum capital requirements may result in certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on the U.S. Bank Subsidiaries’ and the Firm’s financial statements. At December 31, 2019 and December 31, 2018 , the U.S. Bank Subsidiaries’ risk-based capital ratios are based on the Standardized Approach rules. In each period, the ratios exceeded well-capitalized requirements. MSBNA’s Regulatory Capital At December 31, 2019 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 6.5 % $ 15,919 18.5 % Tier 1 capital 8.0 % 15,919 18.5 % Total capital 10.0 % 16,282 18.9 % Leverage-based capital Tier 1 leverage 5.0 % $ 15,919 11.3 % SLR 6.0 % 15,919 8.7 % At December 31, 2018 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 6.5 % $ 15,221 19.5 % Tier 1 capital 8.0 % 15,221 19.5 % Total capital 10.0 % 15,484 19.8 % Leverage-based capital Tier 1 leverage 5.0 % $ 15,221 10.5 % SLR 6.0 % 15,221 8.2 % MSPBNA’s Regulatory Capital At December 31, 2019 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 6.5 % $ 7,962 24.8 % Tier 1 capital 8.0 % 7,962 24.8 % Total capital 10.0 % 8,016 25.0 % Leverage-based capital Tier 1 leverage 5.0 % $ 7,962 9.9 % SLR 6.0 % 7,962 9.4 % At December 31, 2018 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 6.5 % $ 7,183 25.2 % Tier 1 capital 8.0 % 7,183 25.2 % Total capital 10.0 % 7,229 25.4 % Leverage-based capital Tier 1 leverage 5.0 % $ 7,183 10.0 % SLR 6.0 % 7,183 9.6 % 1. Ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. U.S. Broker-Dealer Regulatory Capital Requirements MS&Co. Regulatory Capital $ in millions At At Net capital $ 13,708 $ 13,797 Excess net capital 10,686 11,333 MS&Co. is a registered U.S. broker-dealer and registered futures commission merchant and, accordingly, is subject to the minimum net capital requirements of the SEC and the CFTC. MS&Co. has consistently operated with capital in excess of its regulatory capital requirements. As an Alternative Net Capital broker-dealer, and in accordance with Securities Exchange Act of 1934 (“Exchange Act”) Rule 15c3-1, Appendix E, MS&Co. is subject to minimum net capital and tentative net capital requirements. In addition, MS&Co. must notify the SEC if its tentative net capital falls below certain levels. At December 31, 2019 and December 31, 2018 , MS&Co. has exceeded its net capital requirement and has tentative net capital in excess of the minimum and notification requirements. MSSB Regulatory Capital $ in millions At At Net capital $ 3,387 $ 3,455 Excess net capital 3,238 3,313 MSSB is a registered U.S. broker-dealer and introducing broker for the futures business and, accordingly, is subject to the minimum net capital requirements of the SEC. MSSB has consistently operated with capital in excess of its regulatory capital requirements. Other Regulated Subsidiaries MSIP, a London-based broker-dealer subsidiary, is subject to the capital requirements of the PRA, and MSMS, a Tokyo-based broker-dealer subsidiary, is subject to the capital requirements of the Financial Services Agency. MSIP and MSMS have consistently operated with capital in excess of their respective regulatory capital requirements. Certain other U.S. and non-U.S. subsidiaries of the Firm are subject to various securities, commodities and banking regulations, and capital adequacy requirements promulgated by the regulatory and exchange authorities of the countries in which they operate. These subsidiaries have consistently operated with capital in excess of their local capital adequacy requirements. Restrictions on Payments The regulatory capital requirements referred to above, and certain covenants contained in various agreements governing indebtedness of the Firm, may restrict the Firm’s ability to withdraw capital from its subsidiaries. The following table represents net assets of consolidated subsidiaries that may be restricted as to the payment of cash dividends and advances to the Parent Company. $ in millions At At Restricted net assets $ 33,213 $ 29,222 |
Total Equity
Total Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Total Equity | Total Equity Morgan Stanley Shareholders’ Equity Common Stock Rollforward of Common Stock Outstanding in millions 2019 2018 Shares outstanding at beginning of period 1,700 1,788 Treasury stock purchases 1 (135 ) (110 ) Other 2 29 22 Shares outstanding at end of period 1,594 1,700 1. The Firm’s Board has authorized the repurchase of the Firm’s outstanding stock under a share repurchase program (“Share Repurchase Program”). In addition to the Firm’s Share Repurchase Program, Treasury stock purchases include repurchases of common stock for employee tax withholding. 2. Other includes net shares issued to and forfeited from Employee stock trusts and issued for RSU conversions. Share Repurchases $ in millions 2019 2018 Repurchases of common stock under the Firm’s Share Repurchase Program $ 5,360 $ 4,860 The Firm’s 2019 Capital Plan (“Capital Plan”) includes the share repurchase of up to $6.0 billion of outstanding common stock for the period beginning July 1, 2019 through June 30, 2020. Additionally, the Capital Plan includes quarterly common stock dividends of up to $0.35 per share, beginning with the common stock dividend announced on July 18, 2019. A portion of common stock repurchases was conducted under a sales plan with MUFG, whereby MUFG sold shares of the Firm’s common stock to the Firm, as part of the Firm’s Share Repurchase Program. The sales plan is only intended to maintain MUFG’s ownership percentage below 24.9% in order to comply with MUFG’s passivity commitments to the Board of Governors of the Federal Reserve System and has no impact on the strategic alliance between MUFG and the Firm, including the joint ventures in Japan. Pursuant to the Share Repurchase Program, the Firm considers, among other things, business segment capital needs, as well as stock-based compensation and benefit plan requirements. Share repurchases under the program will be exercised from time to time at prices the Firm deems appropriate subject to various factors, including the Firm’s capital position and market conditions. The share repurchases may be effected through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans, and may be suspended at any time. Share repurchases by the Firm are subject to regulatory non-objection. Common Stock Dividends per Share 2019 2018 2017 Dividends declared per common share $ 1.30 $ 1.10 $ 0.90 Common Shares Outstanding for Basic and Diluted EPS in millions 2019 2018 2017 Weighted average common shares outstanding, basic 1,617 1,708 1,780 Effect of dilutive Stock options, RSUs and PSUs 23 30 41 Weighted average common shares outstanding and common stock equivalents, diluted 1,640 1,738 1,821 Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS) 2 1 — Preferred Stock Shares Outstanding Carrying Value $ in millions, except per share data At Liquidation Preference per Share At At Series A 44,000 $ 25,000 $ 1,100 $ 1,100 C 1 519,882 1,000 408 408 E 34,500 25,000 862 862 F 34,000 25,000 850 850 G — — — 500 H 52,000 25,000 1,300 1,300 I 40,000 25,000 1,000 1,000 J 60,000 25,000 1,500 1,500 K 40,000 25,000 1,000 1,000 L 20,000 25,000 500 — Total $ 8,520 $ 8,520 1. Series C is composed of the issuance of 1,160,791 shares of Series C Preferred Stock to MUFG for an aggregate purchase price of $911 million , less the redemption of 640,909 shares of Series C Preferred Stock of $503 million , which were converted to common shares of approximately $705 million in 2009. The Firm is authorized to issue 30 million shares of preferred stock. The preferred stock has a preference over the common stock upon liquidation. The Firm’s preferred stock qualifies as and is included in Tier 1 capital in accordance with regulatory capital requirements (see Note 15 ). On November 25, 2019, the Firm announced the redemption in whole of its outstanding Series G preferred stock. On notice of redemption, the amount due to holders of Series G Preferred Stock was reclassified to Borrowings, and on January 15, 2020 the redemption settled at the carrying value of $500 million . Preferred Stock Issuance Description Depositary Shares per Share Redemption Series 1, 2 Shares Issued Price per Share 3 Date 4 A 44,000 1,000 $ 25,000 July 15, 2011 C 5 1,160,791 N/A 1,100 October 15, 2011 E 34,500 1,000 25,000 October 15, 2023 F 34,000 1,000 25,000 January 15, 2024 H 52,000 25 25,000 July 15, 2019 I 40,000 1,000 25,000 October 15, 2024 J 60,000 25 25,000 July 15, 2020 K 40,000 1,000 25,000 April 15, 2027 L 6 20,000 1,000 25,000 January 15, 2025 1. All shares issued are non-cumulative. Each share has a par value of $0.01 , except Series C. 2. Dividends on Series A are based on a floating rate, and dividends on Series C and L are based on a fixed rate. Dividends on all other Series are based on a fixed-to-floating rate. 3. Series A and C are redeemable at the redemption price plus accrued and unpaid dividends, regardless of whether dividends are actually declared, up to but excluding the date of redemption. All other Series are redeemable at the redemption price plus any declared and unpaid dividends, up to but excluding the date fixed for redemption. 4. Series A and C are redeemable at the Firm’s option, in whole or in part, on or after the redemption date. All other Series are redeemable at the Firm’s option (i) in whole or in part, from time to time, on any dividend payment date on or after the redemption date or (ii) in whole but not in part at any time within 90 days following a regulatory capital treatment event (as described in the terms of that series). 5. Series C is non-voting perpetual preferred stock. Dividends on the Series C preferred stock are payable, on a non-cumulative basis, as and if declared by the Board, in cash, at the rate of 10% per annum of the liquidation preference of $1,000 per share. 6. Series L Preferred Stock was issued on November 25, 2019. Preferred Stock Dividends $ in millions, except per share data 2019 2018 2017 Per Share 1 Total Per Share 1 Total Per Share 1 Total Series A $ 1,014 $ 44 $ 1,011 $ 45 $ 1,014 $ 45 C 100 52 100 52 100 52 E 1,781 60 1,781 61 1,781 61 F 1,719 60 1,719 58 1,719 58 G 2 1,242 24 1,656 33 1,656 33 H 3 1,418 74 1,363 71 1,363 71 I 1,594 64 1,594 64 1,594 64 J 4 1,388 84 1,388 83 1,388 83 K 1,463 59 1,463 59 1,402 56 L 169 3 — — — — Total $ 524 $ 526 $ 523 1. Dividends on all series are payable quarterly, unless otherwise noted. 2. Dividends declared on Series G following the issuance of the notice of redemption were recognized as Interest expense and are excluded from 2019 amounts. 3. Series H was payable semiannually until July 15, 2019, and is now payable quarterly. 4. Series J is payable semiannually until July 15, 2020, and then quarterly thereafter. Comprehensive Income (Loss) Accumulated Comprehensive Income (Loss) 1 $ in millions Foreign Currency Translation Adjustments AFS Securities Pensions, Postretirement and Other DVA Total December 31, 2016 $ (986 ) $ (588 ) $ (474 ) $ (595 ) $ (2,643 ) OCI during the period 219 41 (117 ) (560 ) (417 ) December 31, 2017 (767 ) (547 ) (591 ) (1,155 ) (3,060 ) Cumulative adjustment for accounting change 2 (8 ) (111 ) (124 ) (194 ) (437 ) OCI during the period (114 ) (272 ) 137 1,454 1,205 December 31, 2018 (889 ) (930 ) (578 ) 105 (2,292 ) OCI during the period (8 ) 1,137 (66 ) (1,559 ) (496 ) December 31, 2019 $ (897 ) $ 207 $ (644 ) $ (1,454 ) $ (2,788 ) 1. Amounts are net of tax and noncontrolling interests. 2. The cumulative adjustment for accounting changes is primarily the effect of the adoption of the accounting update Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This adjustment was recorded as of January 1, 2018 to reclassify certain income tax effects related to the enactment of the Tax Act from AOCI to Retained earnings, primarily related to the remeasurement of deferred tax assets and liabilities resulting from the reduction in the corporate income tax rate to 21% . See Note 2 for further information. Components of Period Changes in OCI 2019 $ in millions Pre-tax Gain (Loss) Income Tax Benefit (Provision) After-tax Gain (Loss) Non- controlling Interests Net Foreign currency translation adjustments OCI activity $ 6 $ (3 ) $ 3 $ 11 $ (8 ) Reclassified to earnings — — — — — Net OCI $ 6 $ (3 ) $ 3 $ 11 $ (8 ) Change in net unrealized gains (losses) on AFS securities OCI activity $ 1,588 $ (373 ) $ 1,215 $ — $ 1,215 Reclassified to earnings (103 ) 25 (78 ) — (78 ) Net OCI $ 1,485 $ (348 ) $ 1,137 $ — $ 1,137 Pension, postretirement and other OCI activity $ (98 ) $ 25 $ (73 ) $ — $ (73 ) Reclassified to earnings 12 (5 ) 7 — 7 Net OCI $ (86 ) $ 20 $ (66 ) $ — $ (66 ) Change in net DVA OCI activity $ (2,181 ) $ 533 $ (1,648 ) $ (80 ) $ (1,568 ) Reclassified to earnings 11 (2 ) 9 — 9 Net OCI $ (2,170 ) $ 531 $ (1,639 ) $ (80 ) $ (1,559 ) 2018 1 $ in millions Pre-tax Gain (Loss) Income Tax Benefit (Provision) After-tax Gain (Loss) Non- controlling Interests Net Foreign currency translation adjustments OCI activity $ (11 ) $ (79 ) $ (90 ) $ 24 $ (114 ) Reclassified to earnings — — — — — Net OCI $ (11 ) $ (79 ) $ (90 ) $ 24 $ (114 ) Change in net unrealized gains (losses) on AFS securities OCI activity $ (346 ) $ 80 $ (266 ) $ — $ (266 ) Reclassified to earnings (8 ) 2 (6 ) — (6 ) Net OCI $ (354 ) $ 82 $ (272 ) $ — $ (272 ) Pension, postretirement and other OCI activity $ 156 $ (37 ) $ 119 $ — $ 119 Reclassified to earnings 26 (8 ) 18 — 18 Net OCI $ 182 $ (45 ) $ 137 $ — $ 137 Change in net DVA OCI activity $ 1,947 $ (472 ) $ 1,475 $ 63 $ 1,412 Reclassified to earnings 56 (14 ) 42 — 42 Net OCI $ 2,003 $ (486 ) $ 1,517 $ 63 $ 1,454 2017 $ in millions Pre-tax Gain (Loss) Income Tax Benefit (Provision) After-tax Gain (Loss) Non- controlling Interests Net Foreign currency translation adjustments OCI activity $ 64 $ 187 $ 251 $ 32 $ 219 Reclassified to earnings — — — — — Net OCI $ 64 $ 187 $ 251 $ 32 $ 219 Change in net unrealized gains (losses) on AFS securities OCI activity $ 100 $ (36 ) $ 64 $ — $ 64 Reclassified to earnings (35 ) 12 (23 ) — (23 ) Net OCI $ 65 $ (24 ) $ 41 $ — $ 41 Pension, postretirement and other OCI activity $ (193 ) $ 75 $ (118 ) $ — $ (118 ) Reclassified to earnings 2 (1 ) 1 — 1 Net OCI $ (191 ) $ 74 $ (117 ) $ — $ (117 ) Change in net DVA OCI activity $ (922 ) $ 325 $ (597 ) $ (28 ) $ (569 ) Reclassified to earnings 12 (3 ) 9 — 9 Net OCI $ (910 ) $ 322 $ (588 ) $ (28 ) $ (560 ) 1. Exclusive of cumulative adjustments related to the adoption of certain accounting updates in 2018. Refer to the table below and Note 2 for further information. Cumulative Adjustments to Retained Earnings Related to Adoption of Accounting Updates $ in millions 2019 Leases $ 63 $ in millions 2018 Revenues from contracts with customers $ (32 ) Derivatives and hedging—targeted improvements to accounting for hedging activities (99 ) Reclassification of certain tax effects from AOCI 443 Other 1 (6 ) Total $ 306 $ in millions 2017 Improvements to employee share-based payment accounting 2 $ (30 ) Intra-entity transfers of assets other than inventory (5 ) Total $ (35 ) 1. Other includes the adoption of accounting updates related to Recognition and Measurement of Financial Assets and Financial Liabilities (other than the provision around presenting unrealized DVA in OCI, which the Firm previously adopted) and Derecognition of Nonfinancial Assets . The impact of these adoptions on Retained earnings was not significant. 2. In addition to the Retained earnings impact, this adoption also resulted in a $45 million increase to Additional paid-in capital. Cumulative Foreign Currency Translation Adjustments $ in millions At At Associated with net investments in subsidiaries with a non-U.S. dollar functional currency $ (1,874 ) $ (1,851 ) Hedges, net of tax 977 962 Total $ (897 ) $ (889 ) Carrying value of net investments in non-U.S. dollar functional currency subsidiaries subject to hedges $ 13,440 $ 11,608 Cumulative foreign currency translation adjustments include gains or losses resulting from translating foreign currency financial statements from their respective functional currencies to U.S. dollars, net of hedge gains or losses and related tax effects. The Firm uses foreign currency contracts to manage the currency exposure relating to its net investments in non-U.S. dollar functional currency subsidiaries and determines the amount of exposure to hedge on a pre-tax basis. The Firm may also elect not to hedge its net investments in certain foreign operations due to market conditions or other reasons, including the availability of various currency contracts at acceptable costs. Information relating to the effects on cumulative foreign currency translation adjustments that resulted from the translation of foreign currency financial statements and from gains and losses from hedges of the Firm’s net investments in non-U.S. dollar functional currency subsidiaries is summarized in the previous table. |
Interest Income and Interest Ex
Interest Income and Interest Expense | 12 Months Ended |
Dec. 31, 2019 | |
Interest Income (Expense), Net [Abstract] | |
Interest Income and Interest Expense | Interest Income and Interest Expense $ in millions 2019 2018 2017 Interest income Investment securities $ 2,175 $ 1,744 $ 1,334 Loans 4,783 4,249 3,298 Securities purchased under agreements to resell and Securities borrowed 1 3,485 1,976 169 Trading assets, net of Trading liabilities 2,899 2,392 2,029 Customer receivables and Other 2 3,756 3,531 2,167 Total interest income $ 17,098 $ 13,892 $ 8,997 Interest expense Deposits $ 1,885 $ 1,255 $ 187 Borrowings 5,052 5,031 4,285 Securities sold under agreements to repurchase and Securities loaned 3 2,609 1,898 1,237 Customer payables and Other 4 2,858 1,902 (12 ) Total interest expense $ 12,404 $ 10,086 $ 5,697 Net interest $ 4,694 $ 3,806 $ 3,300 1. Includes fees paid on Securities borrowed. 2. Includes interest from Cash and cash equivalents. 3. Includes fees received on Securities loaned. 4. Includes fees received from prime brokerage customers for stock loan transactions entered into to cover customers’ short positions. Interest income and Interest expense are classified in the income statements based on the nature of the instrument and related market conventions. When included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. |
Deferred Compensation Plans and
Deferred Compensation Plans and Carried Interest Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation Plans and Carried Interest Compensation | Deferred Compensation Plans and Carried Interest Compensation Stock-Based Compensation Plans Certain employees of the Firm participate in the Firm's stock-based compensation plans. These plans include RSUs and PSUs, the details of which are further outlined below. Stock-Based Compensation Expense $ in millions 2019 2018 2017 RSUs $ 1,064 $ 892 $ 951 PSUs 89 28 75 Total 1 $ 1,153 $ 920 $ 1,026 Includes: Retirement-eligible awards 2 $ 111 $ 110 $ 85 1. Net of forfeitures. 2. Relates to stock-based compensation anticipated to be awarded in January of the following year that does not contain a future service requirement. Tax Benefit Related to Stock-Based Compensation Expense $ in millions 2019 2018 2017 Tax benefit 1 $ 243 $ 193 $ 225 1. Excludes income tax consequences related to employee share-based award conversions. Unrecognized Compensation Cost Related to Stock-Based Awards Granted $ in millions At December 31, 2019 1 To be recognized in: 2020 $ 394 2021 168 Thereafter 30 Total $ 592 1. Amounts do not include forfeitures, cancellations, accelerations, future adjustments to fair value for certain awards, or 2019 performance year compensation awarded in January 2020, which will begin to be amortized in 2020 . In connection with awards under its stock-based compensation plans, the Firm is authorized to issue shares of common stock held in treasury or newly issued shares. The Firm generally uses treasury shares, if available, to deliver shares to employees or employee stock trusts and has an ongoing repurchase authorization that includes repurchases in connection with awards under its stock-based compensation plans. Share repurchases by the Firm are subject to regulatory non-objection. Common Shares Available for Future Awards under Stock-Based Compensation Plans in millions At Shares 123 See Note 16 for additional information on the Firm’s Share Repurchase Program. Restricted Stock Units RSUs are subject to vesting over time, generally one to seven years from the date of award, contingent upon continued employment and subject to restrictions on sale, transfer or assignment until conversion to common stock. All or a portion of an award may be forfeited if employment is terminated before the end of the relevant vesting period or cancelled after the relevant vesting period in certain situations. Recipients of RSUs may have voting rights, at the Firm’s discretion, and generally receive dividend equivalents if the awards vest. Vested and Unvested RSU Activity 2019 shares in millions Number of Shares Weighted Average Award Date Fair Value RSUs at beginning of period 74 $ 37.59 Awarded 27 43.05 Conversions to common stock (35 ) 28.95 Forfeited (1 ) 43.66 RSUs at end of period 1 65 $ 44.38 Aggregate intrinsic value of RSUs at end of period (dollars in millions) $ 3,294 Weighted average award date fair value RSUs awarded in 2018 $ 55.40 RSUs awarded in 2017 42.98 1. At December 31, 2019 , the weighted average remaining term until delivery for the outstanding RSUs was approximately 1.2 years. Unvested RSU Activity 2019 shares in millions Number of Shares Weighted Average Award Date Fair Value Unvested RSUs at beginning of period 41 $ 40.65 Awarded 27 43.05 Vested (30 ) 37.80 Forfeited (1 ) 43.66 Unvested RSUs at end of period 1 37 $ 44.58 1. Unvested RSUs represent awards where recipients have yet to satisfy either the explicit vesting terms or retirement-eligible requirements. Fair Value of RSU Activity $ in millions 2019 2018 2017 Conversions to common stock $ 1,497 $ 1,790 $ 1,333 Vested 1,292 1,504 1,470 Performance-Based Stock Units PSUs will vest and convert to shares of common stock only if the Firm satisfies predetermined performance and market-based conditions over a three-year performance period. The number of PSUs that will vest ranges from 0% to 150% of the target award, based on the extent to which the Firm achieves the specified performance goals. One-half of the award will be earned based on the Firm’s average return on equity, excluding certain adjustments specified in the plan terms (“MS Adjusted ROE”). The other half of the award will be earned based on the Firm’s total shareholder return, relative to the total shareholder return of the S&P 500 Financials Sector Index (“Relative MS TSR”). PSUs have vesting, restriction, forfeiture and cancellation provisions that are generally similar to those of RSUs. At December 31, 2019 , approximately 3 million PSUs were outstanding. PSU Fair Value on Award Date 2019 2018 2017 MS Adjusted ROE $ 43.29 $ 56.84 $ 42.64 Relative MS TSR 48.28 65.81 48.02 The Relative MS TSR fair values on the award date were estimated using a Monte Carlo simulation and the following assumptions. Monte Carlo Simulation Assumptions Award Year Risk-Free Interest Rate Expected Stock Price Volatility Correlation Coefficient 2019 2.6 % 26.5 % 0.89 2018 2.2 % 26.8 % 0.89 2017 1.5 % 27.0 % 0.89 The risk-free interest rate was determined based on the yields available on U.S. Treasury zero-coupon issues. The expected stock price volatility was determined using historical volatility. The correlation coefficient was developed based on historical price data of the Firm and the S&P 500 Financials Sector Index. The model uses an expected dividend yield equivalent to reinvesting dividends. Deferred Cash-Based Compensation Plans Deferred cash-based compensation plans generally provide a return to the plan participants based upon the performance of each participant’s referenced investments. Deferred Cash-Based Compensation Expense $ in millions 2019 2018 2017 Deferred cash-based awards $ 1,233 $ 1,174 $ 1,039 Return on referenced investments 645 (48 ) 499 Total 1 $ 1,878 $ 1,126 $ 1,538 Includes: Retirement-eligible awards 2 $ 195 $ 193 $ 176 1. Net of forfeitures. 2. Relates to deferred cash-based compensation anticipated to be awarded in January of the following year that does not contain a future service requirement. Carried Interest Compensation The Firm generally recognizes compensation expense for any portion of carried interest (both realized and unrealized) that is allocated to employees. Carried Interest Compensation Expense $ in millions 2019 2018 2017 Expense $ 534 $ 156 $ 197 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Pension and Other Postretirement Plans Components of Net Periodic Benefit Expense (Income) Pension Plans $ in millions 2019 2018 2017 Service cost, benefits earned during the period $ 16 $ 16 $ 16 Interest cost on projected benefit obligation 139 134 146 Expected return on plan assets (114 ) (112 ) (117 ) Net amortization of prior service cost (credit) 1 (1 ) — Net amortization of actuarial loss 13 26 17 Net periodic benefit expense $ 55 $ 63 $ 62 Other Postretirement Plans $ in millions 2019 2018 2017 Service cost, benefits earned during the period $ 1 $ 1 $ 1 Interest cost on projected benefit obligation 2 3 3 Net amortization of prior service credit — (1 ) (16 ) Net periodic benefit expense (income) $ 3 $ 3 $ (12 ) Certain U.S. employees of the Firm and its U.S. affiliates who were hired before July 1, 2007 are covered by the U.S. pension plan, a non-contributory defined benefit pension plan that is qualified under Section 401(a) of the Internal Revenue Code (“U.S. Qualified Plan”). The U.S. Qualified Plan has ceased future benefit accruals. Unfunded supplementary plans (“Supplemental Plans”) cover certain executives. Liabilities for benefits payable under the Supplemental Plans are accrued by the Firm and are funded when paid. The Morgan Stanley Supplemental Executive Retirement and Excess Plan (“SEREP”), a non-contributory defined benefit plan that is not qualified under Section 401(a) of the Internal Revenue Code, has ceased future benefit accruals. Certain of the Firm’s non-U.S. subsidiaries also have defined benefit pension plans covering their eligible employees. The Firm’s pension plans generally provide pension benefits that are based on each employee’s years of credited service and on compensation levels specified in the plans. The Firm has unfunded postretirement benefit plans that provide health care and life insurance for eligible U.S. retirees and health care insurance for their dependents. Rollforward of Pre-tax AOCI Pension Plans $ in millions 2019 2018 2017 Beginning balance $ (779 ) $ (947 ) $ (761 ) Net gain (loss) (112 ) 158 (205 ) Prior service credit (cost) — (15 ) 2 Amortization of prior service cost (credit) 1 (1 ) — Amortization of net loss 13 26 17 Changes recognized in OCI (98 ) 168 (186 ) Ending balance $ (877 ) $ (779 ) $ (947 ) Other Postretirement Plans $ in millions 2019 2018 2017 Beginning balance $ 13 $ 1 $ 17 Net gain 13 13 — Amortization of prior service credit — (1 ) (16 ) Changes recognized in OCI 13 12 (16 ) Ending balance $ 26 $ 13 $ 1 The Firm generally amortizes into net periodic benefit expense (income) the unrecognized net gains and losses exceeding 10% of the greater of the projected benefit obligation or the market-related value of plan assets. The U.S. pension plans amortize the unrecognized net gains and losses over the average life expectancy of participants. The remaining plans generally amortize the unrecognized net gains and losses and prior service credit over the average remaining service period of active participants. Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense (Income) Pension Plans 2019 2018 2017 Discount rate 4.01 % 3.46 % 4.01 % Expected long-term rate of return on plan assets 3.52 % 3.50 % 3.52 % Rate of future compensation increases 3.34 % 3.38 % 3.10 % Other Postretirement Plans 2019 2018 2017 Discount rate 4.07 % 3.44 % 4.01 % The accounting for pension and other postretirement plans involves certain assumptions and estimates. The expected long-term rate of return for the U.S. Qualified Plan was estimated by computing a weighted average of the underlying long-term expected returns based on the investment managers’ target allocations. Benefit Obligation and Funded Status Rollforward of the Benefit Obligation and Fair Value of Plan Assets Pension Plans Other Post-retirement Plans $ in millions 2019 2018 2019 2018 Rollforward of benefit obligation Benefit obligation at beginning of year $ 3,563 $ 3,966 $ 71 $ 86 Service cost 16 16 1 1 Interest cost 139 134 2 3 Actuarial loss (gain) 1 497 (340 ) (13 ) (13 ) Plan amendments — 15 — — Plan settlements (9 ) (11 ) — — Benefits paid (191 ) (195 ) (5 ) (6 ) Other 2 11 (22 ) — — Benefit obligation at end of year $ 4,026 $ 3,563 $ 56 $ 71 Rollforward of fair value of plan assets Fair value of plan assets at beginning of year $ 3,203 $ 3,468 $ — $ — Actual return on plan assets 499 (69 ) — — Employer contributions 36 34 5 6 Benefits paid (191 ) (195 ) (5 ) (6 ) Plan settlements (9 ) (11 ) — — Other 2 15 (24 ) — — Fair value of plan assets at end of year $ 3,553 $ 3,203 $ — $ — Funded (unfunded) status $ (473 ) $ (360 ) $ (56 ) $ (71 ) Amounts recognized in the balance sheets Assets $ 98 $ 151 $ — $ — Liabilities (571 ) (511 ) (56 ) (71 ) Net amount recognized $ (473 ) $ (360 ) $ (56 ) $ (71 ) 1. Primarily reflects the impact of year-over-year discount rate fluctuations. 2. Includes foreign currency exchange rate changes. Accumulated Benefit Obligation $ in millions At At Pension plans $ 4,013 $ 3,546 Pension Plans with Benefit Obligations in Excess of the Fair Value of Plan Assets $ in millions At At Projected benefit obligation $ 637 $ 575 Accumulated benefit obligation 624 559 Fair value of plan assets 66 64 The pension plans included in the table above may differ based on their funding status as of December 31 st of each year. Weighted Average Assumptions Used to Determine Benefit Obligation Pension Plans Other Postretirement Plans At At At At Discount rate 3.08 % 4.01 % 3.11 % 4.07 % Rate of future compensation increase 3.28 % 3.34 % N/A N/A The discount rates used to determine the benefit obligation for the U.S. pension and postretirement plans were selected by the Firm, in consultation with its independent actuary, using a pension discount yield curve based on the characteristics of the plans, each determined independently. The pension discount yield curve represents spot discount yields based on duration implicit in a representative broad-based Aa-rated corporate bond universe of high-quality fixed income investments. For all non-U.S. pension plans, the Firm set the assumed discount rates based on the nature of liabilities, local economic environments and available bond indices. Assumed Health Care Cost Trend Rates Used to Determine the U.S. Postretirement Benefit Obligation At At Health care cost trend rate assumed for next year Medical 5.48 % 5.66 % Prescription 8.00 % 7.66 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.41 % 4.50 % Year that the rate reaches the ultimate trend rate 2029 2038 Plan Assets Fair Value of Plan Assets At December 31, 2019 $ in millions Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents 1 $ 3 $ — $ — $ 3 U.S. government and agency securities: U.S. Treasury securities 2,658 — — 2,658 U.S. agency securities — 292 — 292 Total U.S. government and agency securities 2,658 292 — 2,950 Corporate and other debt—CDO — 9 — 9 Other investments — — 53 53 Other receivables 1 — 48 — 48 Total $ 2,661 $ 349 $ 53 $ 3,063 Assets Measured at NAV Commingled trust funds: Money market 137 Foreign funds: Fixed income 136 Liquidity 30 Targeted cash flow 240 Total $ 543 Liabilities Derivative contracts — (1 ) — (1 ) Other payables 1 — (52 ) — (52 ) Total liabilities $ — $ (53 ) $ — $ (53 ) Fair value of plan assets $ 3,553 At December 31, 2018 $ in millions Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents 1 $ 3 $ — $ — $ 3 U.S. government and agency securities: U.S. Treasury securities 2,197 — — 2,197 U.S. agency securities — 317 — 317 Total U.S. government and agency securities 2,197 317 — 2,514 Corporate and other debt—CDO — 11 — 11 Derivative contracts — 22 — 22 Other investments — — 48 48 Total $ 2,200 $ 350 $ 48 $ 2,598 Assets Measured at NAV Commingled trust funds: Money market 252 Foreign funds: Fixed income 134 Liquidity 12 Targeted cash flow 207 Total $ 605 Fair value of plan assets $ 3,203 1. Cash and cash equivalents, other receivables and other payables are valued at their carrying value, which approximates fair value. Rollforward of Level 3 Plan Assets $ in millions 2019 2018 Balance at beginning of period $ 48 $ 47 Actual return on plan assets related to assets held at end of period 3 — Purchases, sales, other settlements and issuances, net 2 1 Balance at end of period $ 53 $ 48 There were no transfers between levels during 2019 and 2018 . The U.S. Qualified Plan’s assets represent 87% of the Firm’s total pension plan assets. The U.S. Qualified Plan uses a combination of active and risk-controlled fixed income investment strategies. The fixed income asset allocation consists primarily of fixed income securities and related derivative instruments designed to approximate the expected cash flows of the plan’s liabilities in order to help reduce plan exposure to interest rate variation and to better align assets with the obligation. The longer-duration fixed income allocation is expected to help protect the plan’s funded status and maintain the stability of plan contributions over the long run. The investment portfolio performance is assessed by comparing actual investment performance with changes in the estimated present value of the U.S. Qualified Plan’s benefit obligation. Derivative instruments are permitted in the U.S. Qualified Plan’s investment portfolio only to the extent that they comply with all of the plan’s investment policy guidelines and are consistent with the plan’s risk and return objectives. As a fundamental operating principle, any restrictions on the underlying assets apply to a respective derivative product. This includes percentage allocations and credit quality. Derivatives are used solely for the purpose of enhancing investment in the underlying assets and not to circumvent portfolio restrictions. Plan assets are measured at fair value using valuation techniques that are consistent with the valuation techniques applied to the Firm’s major categories of assets and liabilities as described in Notes 2 and 3 . OTC derivative contracts consist of investments in interest rate swaps and total return swaps. Other investments consist of pledged insurance annuity contracts held by non-U.S.-based plans. The pledged insurance annuity contracts are valued based on the premium reserve of the insurer for a guarantee that the insurer has given to the employee benefit plan that approximates fair value. The pledged insurance annuity contracts are categorized in Level 3 of the fair value hierarchy. Commingled trust funds are privately offered funds regulated, supervised and subject to periodic examination by a U.S. federal or state agency and available to institutional clients. The trust must be maintained for the collective investment or reinvestment of assets contributed to it from U.S. tax-qualified employee benefit plans maintained by more than one employer or controlled group of corporations. The sponsor of the commingled trust funds values the funds based on the fair value of the underlying securities. Commingled trust funds are redeemable at NAV at the measurement date or in the near future. Some non-U.S.-based plans hold foreign funds that consist of investments in fixed income funds, target cash flow funds and liquidity funds. Fixed income funds invest in individual securities quoted on a recognized stock exchange or traded in a regulated market. Certain fixed income funds aim to produce returns consistent with certain Financial Times Stock Exchange indexes. Target cash flow funds are designed to provide a series of fixed annual cash flows achieved by investing in government bonds and derivatives. Liquidity funds place a high priority on capital preservation, stable value and a high liquidity of assets. Foreign funds are readily redeemable at NAV. The Firm generally considers the NAV of commingled trust funds and foreign funds provided by the fund manager to be the best estimate of fair value. Expected Contributions The Firm’s policy is to fund at least the amount sufficient to meet minimum funding requirements under applicable employee benefit and tax laws. At December 31, 2019 , the Firm expected to contribute approximately $ 50 million to its pension and postretirement benefit plans in 2020 based upon the plans’ current funded status and expected asset return assumptions for 2020 . Expected Future Benefit Payments At December 31, 2019 $ in millions Pension Plans Other Postretirement Plans 2020 149 4 2021 151 4 2022 153 5 2023 159 5 2024 163 5 2025-2029 911 18 Morgan Stanley 401(k) Plan $ in millions 2019 2018 2017 Expense $ 280 $ 272 $ 258 U.S. employees meeting certain eligibility requirements may participate in the Morgan Stanley 401(k) Plan. Eligible employees receive discretionary 401(k) matching cash contributions as determined annually by the Firm. For 2019 , 2018 and 2017 , the Firm matched employee contributions up to 4% of eligible pay, up to the IRS limit. Matching contributions were invested among available funds according to each participant’s investment direction on file. Eligible employees with eligible pay less than or equal to $100,000 also received a fixed contribution under the 401(k) Plan equal to 2% of eligible pay. Transition contributions relating to acquired entities or frozen employee benefit plans are allocated to certain eligible employees. The Firm match, fixed contribution and transition contribution are included in the Firm’s 401(k) expense. Non-U.S. Defined Contribution Pension Plans $ in millions 2019 2018 2017 Expense $ 121 $ 116 $ 106 The Firm maintains separate defined contribution pension plans that cover eligible employees of certain non-U.S. subsidiaries. Under such plans, benefits are generally determined based on a fixed rate of base salary with certain vesting requirements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Provision for (Benefit from) Income Taxes Components of Provision for (Benefit from) Income Taxes $ in millions 2019 2018 2017 Current U.S.: Federal $ 873 $ 686 $ 476 State and local 260 207 125 Non-U.S.: U.K. 166 328 401 Japan 177 268 56 Hong Kong 82 94 48 Other 1 341 318 308 Total $ 1,899 $ 1,901 $ 1,414 Deferred U.S.: Federal $ 185 $ 330 $ 2,656 State and local 46 56 84 Non-U.S.: U.K. 5 54 18 Japan 11 (10 ) (17 ) Hong Kong — (3 ) (2 ) Other 1 (82 ) 22 15 Total $ 165 $ 449 $ 2,754 Provision for income taxes from continuing operations $ 2,064 $ 2,350 $ 4,168 Provision for (benefit from) income taxes from discontinued operations $ — $ (1 ) $ (7 ) 1. Other Non-U.S. tax provisions for 2019, 2018 and 2017 primarily include Brazil, India and Canada. Effective Income Tax Rate Reconciliation of the U.S. Federal Statutory Income Tax Rate to the Effective Income Tax Rate 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 21.0 % 35.0 % U.S. state and local income taxes, net of U.S. federal income tax benefits 2.2 2.0 1.4 Domestic tax credits (1.5 ) (0.9 ) (1.6 ) Tax exempt income (0.1 ) (0.4 ) (0.1 ) Non-U.S. earnings (0.8 ) 1.3 (5.0 ) Tax Act enactment — — 11.5 Employee share-based awards (1.1 ) (1.5 ) (1.5 ) Other (1.4 ) (0.6 ) 0.4 Effective income tax rate 18.3 % 20.9 % 40.1 % The Firm’s effective tax rates for 2019 and 2018 include intermittent net discrete tax benefits of $348 million and $203 million , respectively, primarily associated with remeasurement of reserves and related interest as a result of new information pertaining to multi-jurisdiction tax examinations. The Firm’s effective tax rate from continuing operations for 2017 included an intermittent net discrete tax provision of $968 million , which included an approximate $1.2 billion provision primarily related to the remeasurement of certain net deferred tax assets as a result of the Tax Act, partially offset by $233 million of net discrete tax benefits primarily associated with the remeasurement of reserves and related interest due to new information regarding the status of multi-year IRS tax examinations. The Tax Act, enacted on December 22, 2017, significantly revised U.S. corporate income tax law by reducing the corporate income tax rate to 21% , partially or wholly eliminating tax deductions for certain expenses and implementing a modified territorial tax system. The modified territorial tax system included a one-time transition tax on deemed repatriated earnings of non-U.S. subsidiaries and also imposes a minimum tax on GILTI and an alternative BEAT on U.S. corporations with operations outside the U.S. Deferred Tax Assets and Liabilities $ in millions At At Gross deferred tax assets Net operating loss and tax credit carryforwards $ 287 $ 264 Employee compensation and benefit plans 2,075 2,053 Valuation and liability allowances 318 318 Valuation of inventory, investments and receivables 368 242 Total deferred tax assets 3,048 2,877 Deferred tax assets valuation allowance 156 143 Deferred tax assets after valuation allowance $ 2,892 $ 2,734 Gross deferred tax liabilities Fixed assets 983 825 Other 411 236 Total deferred tax liabilities $ 1,394 $ 1,061 Net deferred tax assets $ 1,498 $ 1,673 Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. The Firm believes the recognized net deferred tax assets (after valuation allowance) at December 31, 2019 are more likely than not to be realized based on expectations as to future taxable income in the jurisdictions in which it operates. The earnings of certain foreign subsidiaries are indefinitely reinvested due to regulatory and other capital requirements in foreign jurisdictions. As a result of the Tax Act’s one-time transition tax on the earnings of foreign subsidiaries and an annual minimum tax on GILTI, as of December 31, 2019 the unrecognized deferred tax liability attributable to indefinitely reinvested earnings is immaterial. Unrecognized Tax Benefits Rollforward of Unrecognized Tax Benefits $ in millions 2019 2018 2017 Balance at beginning of period $ 1,080 $ 1,594 $ 1,851 Increase based on tax positions related to the current period 57 83 63 Increase based on tax positions related to prior periods 61 34 170 Decrease based on tax positions related to prior periods (419 ) (404 ) (312 ) Decreases related to settlements with taxing authorities (17 ) (139 ) (155 ) Decreases related to lapse of statute of limitations (7 ) (88 ) (23 ) Balance at end of period $ 755 $ 1,080 $ 1,594 Net unrecognized tax benefits 1 $ 549 $ 746 $ 873 1. Represent ending unrecognized tax benefits adjusted for the impact of the federal benefit of state issues, competent authority arrangements and foreign tax credit offsets. If recognized, these net benefits would favorably impact the effective tax rate in future periods. Interest Expense (Benefit), Net of Federal and State Income Tax Benefits $ in millions 2019 2018 2017 Recognized in income statements $ 8 $ (40 ) $ (3 ) Accrued at end of period 92 91 147 Interest and penalties related to unrecognized tax benefits are recognized as a component of the provision for income taxes. Penalties related to unrecognized tax benefits for the years mentioned above were immaterial. Tax Authority Examinations The Firm is under continuous examination by the IRS and other tax authorities in certain countries, such as Japan and the U.K., and in states and localities in which it has significant business operations, such as New York. The Firm has established a liability for unrecognized tax benefits, and associated interest, if applicable (“tax liabilities”), that it believes is adequate in relation to the potential for additional assessments. Once established, the Firm adjusts such tax liabilities only when new information is available or when an event occurs necessitating a change. The Firm believes that the resolution of the above tax examinations will not have a material effect on the annual financial statements, although a resolution could have a material impact in the income statements and on the effective tax rate for any period in which such resolutions occur. See Note 13 regarding the Dutch Tax Authority’s challenge, in the District Court in Amsterdam (matters styled Case number 15 / 3637 and Case number 15 / 4353 ), of the Firm’s entitlement to certain withholding tax credits, which may impact the balance of unrecognized tax benefits. It is reasonably possible that significant changes in the balance of unrecognized tax benefits may occur within the next 12 months . At this time, however, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits and the impact on the Firm’s effective tax rate over the next 12 months . Earliest Tax Year Subject to Examination in Major Tax Jurisdictions Jurisdiction Tax Year U.S. 2013 New York State and New York City 2007 Hong Kong 2013 U.K. 2011 Japan 2015 |
Segment, Geographic and Revenue
Segment, Geographic and Revenue Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment, Geographic and Revenue Information | Segment, Geographic and Revenue Information Segment Information The Firm structures its segments primarily based upon the nature of the financial products and services provided to customers and its management organization. The Firm provides a wide range of financial products and services to its customers in each of the business segments: Institutional Securities, Wealth Management and Investment Management. For a further discussion of the business segments, see Note 1 . Revenues and expenses directly associated with each respective business segment are included in determining its operating results. Other revenues and expenses that are not directly attributable to a particular business segment are generally allocated based on each business segment’s respective net revenues, non-interest expenses or other relevant measures. As a result of revenues and expenses from transactions with other operating segments being treated as transactions with external parties for purposes of segment disclosures, the Firm includes an Intersegment Eliminations category to reconcile the business segment results to the consolidated results. Selected Financial Information by Business Segment 2019 $ in millions IS WM IM I/E Total Investment banking $ 5,734 $ 509 $ — $ (80 ) $ 6,163 Trading 10,318 734 (8 ) 51 11,095 Investments 325 2 1,213 — 1,540 Commissions and fees 1 2,484 1,726 1 (292 ) 3,919 Asset management 1 413 10,199 2,629 (158 ) 13,083 Other 632 345 (46 ) (6 ) 925 Total non-interest revenues 19,906 13,515 3,789 (485 ) 36,725 Interest income 12,193 5,467 20 (582 ) 17,098 Interest expense 11,713 1,245 46 (600 ) 12,404 Net interest 480 4,222 (26 ) 18 4,694 Net revenues $ 20,386 $ 17,737 $ 3,763 $ (467 ) $ 41,419 Income from continuing operations before income taxes $ 5,490 $ 4,832 $ 985 $ (6 ) $ 11,301 Provision for income taxes 769 1,104 193 (2 ) 2,064 Income from continuing operations 4,721 3,728 792 (4 ) 9,237 Income (loss) from discontinued operations, net of income taxes — — — — — Net income 4,721 3,728 792 (4 ) 9,237 Net income applicable to noncontrolling interests 122 — 73 — 195 Net income applicable to Morgan Stanley $ 4,599 $ 3,728 $ 719 $ (4 ) $ 9,042 2018 $ in millions IS WM IM I/E Total Investment banking $ 6,088 $ 475 $ — $ (81 ) $ 6,482 Trading 11,191 279 25 56 11,551 Investments 182 1 254 — 437 Commissions and fees 1 2,671 1,804 — (285 ) 4,190 Asset management 1 421 10,158 2,468 (149 ) 12,898 Other 535 248 (30 ) (10 ) 743 Total non-interest revenues 21,088 12,965 2,717 (469 ) 36,301 Interest income 9,271 5,498 57 (934 ) 13,892 Interest expense 9,777 1,221 28 (940 ) 10,086 Net interest (506 ) 4,277 29 6 3,806 Net revenues $ 20,582 $ 17,242 $ 2,746 $ (463 ) $ 40,107 Income from continuing operations before income taxes $ 6,260 $ 4,521 $ 464 $ (8 ) $ 11,237 Provision for income taxes 1,230 1,049 73 (2 ) 2,350 Income from continuing operations 5,030 3,472 391 (6 ) 8,887 Income (loss) from discontinued operations, net of income taxes (6 ) — 2 — (4 ) Net income 5,024 3,472 393 (6 ) 8,883 Net income applicable to noncontrolling interests 118 — 17 — 135 Net income applicable to Morgan Stanley $ 4,906 $ 3,472 $ 376 $ (6 ) $ 8,748 2017 $ in millions IS WM IM I/E Total Investment banking $ 5,537 $ 533 $ — $ (67 ) $ 6,003 Trading 10,295 848 (22 ) (5 ) 11,116 Investments 368 3 449 — 820 Commissions and fees 2,433 1,737 — (109 ) 4,061 Asset management 359 9,342 2,196 (100 ) 11,797 Other 630 268 (37 ) (13 ) 848 Total non-interest revenues 19,622 12,731 2,586 (294 ) 34,645 Interest income 5,377 4,591 4 (975 ) 8,997 Interest expense 6,186 486 4 (979 ) 5,697 Net interest (809 ) 4,105 — 4 3,300 Net revenues $ 18,813 $ 16,836 $ 2,586 $ (290 ) $ 37,945 Income from continuing operations before income taxes $ 5,644 $ 4,299 $ 456 $ 4 $ 10,403 Provision for income taxes 1,993 1,974 201 — 4,168 Income from continuing operations 3,651 2,325 255 4 6,235 Income (loss) from discontinued operations, net of income taxes (19 ) — — — (19 ) Net income 3,632 2,325 255 4 6,216 Net income applicable to noncontrolling interests 96 — 9 — 105 Net income applicable to Morgan Stanley $ 3,536 $ 2,325 $ 246 $ 4 $ 6,111 I/E–Intersegment Eliminations 1. Substantially all of the of revenues for these line items are recognized under the Revenues from Contracts with Customers accounting update. Detail of Investment Banking Revenues $ in millions 2019 2018 2017 Institutional Securities—Advisory $ 2,116 $ 2,436 $ 2,077 Institutional Securities—Underwriting 3,618 3,652 3,460 Firm Investment banking revenues from contracts with customers 1 90 % 86 % N/A 1. Represents the approximate amount of Investment banking revenues accounted for under this accounting update. Trading Revenues by Product Type $ in millions 2019 2018 2017 Interest rate $ 2,773 $ 2,696 $ 2,091 Foreign exchange 395 914 647 Equity security and index 1 5,246 6,157 6,291 Commodity and other 1,438 1,174 740 Credit 1,243 610 1,347 Total $ 11,095 $ 11,551 $ 11,116 1. Dividend income is included within equity security and index contracts. The previous table summarizes gains and losses included in Trading revenues in the income statements. These activities include revenues related to derivative and non-derivative financial instruments. The Firm generally utilizes financial instruments across a variety of product types in connection with its market-making and related risk management strategies. The trading revenues presented in the table are not representative of the manner in which the Firm manages its business activities and are prepared in a manner similar to the presentation of trading revenues for regulatory reporting purposes. Investment Management Investments Revenues—Net Cumulative Unrealized Carried Interest $ in millions At At Net cumulative unrealized performance-based fees at risk of reversing $ 774 $ 434 The Firm’s portion of net cumulative unrealized performance-based fees in the form of carried interest (for which the Firm is not obligated to pay compensation) are at risk of reversing when the return in certain funds falls below specified performance targets. See Note 13 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received. Investment Management Asset Management Revenues—Reduction of Fees Due to Fee Waivers $ in millions 2019 2018 2017 Fee waivers $ 43 $ 56 $ 86 The Firm waives a portion of its fees in the Investment Management business segment from certain registered money market funds that comply with the requirements of Rule 2a-7 of the Investment Company Act of 1940. Certain Other Fee Waivers Separately, the Firm’s employees, including its senior officers, may participate on the same terms and conditions as other investors in certain funds that the Firm sponsors primarily for client investment, and the Firm may waive or lower applicable fees and charges for its employees. Income from Continuing Operations before Income Tax Expense (Benefit) $ in millions 2019 2018 2017 U.S. $ 9,464 $ 7,804 $ 5,686 Non-U.S. 1 1,837 3,433 4,717 Total $ 11,301 $ 11,237 $ 10,403 1. Non-U.S. income is defined as income generated from operations located outside the U.S. Net Discrete Tax Provisions (Benefits) by Segment $ in millions IS WM IM Total 2019 Intermittent net discrete tax provision (benefit) $ (317 ) $ (13 ) $ (18 ) $ (348 ) Recurring: Employee share-based awards 1 (83 ) (37 ) (7 ) (127 ) Total $ (400 ) $ (50 ) $ (25 ) $ (475 ) 2018 Intermittent net discrete tax provision (benefit) $ (182 ) $ — $ (21 ) $ (203 ) Recurring: Employee share-based awards 1 (104 ) (50 ) (11 ) (165 ) Total $ (286 ) $ (50 ) $ (32 ) $ (368 ) 2017 Intermittent: Tax Act enactment 2 $ 705 $ 402 $ 94 $ 1,201 Remeasurement of reserves and related interest (168 ) — — (168 ) Other (66 ) 9 (8 ) (65 ) Total intermittent net discrete tax provision (benefit) $ 471 $ 411 $ 86 $ 968 Recurring: Employee share-based awards 1 (93 ) (54 ) (8 ) (155 ) Total $ 378 $ 357 $ 78 $ 813 1. We consider these employee share-based award related provisions (benefits) to be recurring-type (“Recurring”) discrete tax items, as we anticipate some level of conversion activity each year. 2. For further discussion on the Tax Act, see Note 20 . Net Revenues by Region $ in millions 2019 2018 2017 Americas $ 30,226 $ 29,301 $ 27,817 EMEA 6,061 6,092 5,714 Asia 5,132 4,714 4,414 Total $ 41,419 $ 40,107 $ 37,945 The Firm operates in both U.S. and non-U.S. markets. The Firm’s non-U.S. business activities are principally conducted and managed through EMEA and Asia locations. The net revenues disclosed in the following table reflect the regional view of the Firm’s consolidated net revenues on a managed basis, based on the following methodology: Institutional Securities: client location for advisory and equity underwriting, revenue recording location for debt underwriting, trading desk location for sales and trading. Wealth Management: representatives operate in the Americas. Investment Management: client location, except certain closed-end funds, which are based on asset location. Revenue Recognized from Prior Services $ in millions 2019 2018 Non-interest revenues $ 2,705 $ 2,821 The previous table includes revenue from contracts with customers recognized where some or all services were performed in prior periods and is primarily composed of investment banking advisory fees and distribution fees. Receivables from Contracts with Customers $ in millions At At Customer and other receivables $ 2,916 $ 2,308 Receivables from contracts with customers, which are included within Customer and other receivables in the balance sheets, arise when the Firm has both recorded revenues and has the right per the contract to bill the customer. Assets by Business Segment $ in millions At At Institutional Securities $ 691,201 $ 646,427 Wealth Management 197,682 202,392 Investment Management 6,546 4,712 Total 1 $ 895,429 $ 853,531 1. Parent assets have been fully allocated to the business segments. Total Assets by Region $ in millions At At Americas $ 622,979 $ 576,532 EMEA 185,093 200,194 Asia 87,357 76,805 Total $ 895,429 $ 853,531 |
Parent Company
Parent Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company | Parent Company Parent Company Only—Condensed Income Statements and Comprehensive Income Statements $ in millions 2019 2018 2017 Revenues Dividends from subsidiaries 1 $ 5,529 $ 4,973 $ 2,567 Trading (54 ) 54 (260 ) Other 80 (5 ) 64 Total non-interest revenues 5,555 5,022 2,371 Interest income 5,121 5,172 3,783 Interest expense 4,661 4,816 4,079 Net interest 460 356 (296 ) Net revenues 6,015 5,378 2,075 Non-interest expenses 300 225 240 Income before income taxes 5,715 5,153 1,835 Provision for (benefit from) income taxes (73 ) 22 (206 ) Net income before undistributed gain of subsidiaries 5,788 5,131 2,041 Undistributed gain of subsidiaries 3,254 3,617 4,070 Net income 9,042 8,748 6,111 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments (8 ) (114 ) 219 Change in net unrealized gains (losses) on available-for-sale securities 1,137 (272 ) 41 Pensions, postretirement and other (66 ) 137 (117 ) Change in net debt valuation adjustment (1,559 ) 1,454 (560 ) Comprehensive income $ 8,546 $ 9,953 $ 5,694 Net income $ 9,042 $ 8,748 $ 6,111 Preferred stock dividends and other 530 526 523 Earnings applicable to Morgan Stanley common shareholders $ 8,512 $ 8,222 $ 5,588 1. In 2019 and 2018, the Parent Company recorded approximately $4 billion and $3 billion , respectively, of dividends from bank subsidiaries. Parent Company Only—Condensed Balance Sheets $ in millions, except share data At At Assets Cash and cash equivalents: Cash and due from banks $ 9 $ 6 Deposits with bank subsidiaries 8,001 7,476 Trading assets at fair value 5,747 10,039 Investment securities (includes $19,824 and $15,500 at fair value and $4,606 and $ — were pledged to various parties) 37,253 22,588 Securities purchased under agreement to resell with affiliates 10,114 25,535 Advances to subsidiaries: Bank and BHC 27,667 30,954 Non-bank 104,345 97,405 Equity investments in subsidiaries: Bank and BHC 36,093 42,848 Non-bank 43,667 32,418 Other assets 244 1,244 Total assets $ 273,140 $ 270,513 Liabilities Trading liabilities at fair value $ 1,130 $ 276 Securities sold under agreements to repurchase with affiliates 4,631 — Payables to and advances from subsidiaries 35,470 30,861 Other liabilities and accrued expenses 2,153 2,548 Borrowings (includes $20,461 and $18,599 at fair value) 148,207 156,582 Total liabilities 191,591 190,267 Commitments and contingent liabilities (see Note 13) Equity Preferred stock 8,520 8,520 Common stock, $0.01 par value: Shares authorized: 3,500,000,000 ; Shares issued: 2,038,893,979 ; Shares outstanding: 1,593,973,680 and 1,699,828,943 20 20 Additional paid-in capital 23,935 23,794 Retained earnings 70,589 64,175 Employee stock trusts 2,918 2,836 Accumulated other comprehensive income (loss) (2,788 ) (2,292 ) Common stock held in treasury at cost, $0.01 par value ( 444,920,299 and 339,065,036 shares) (18,727 ) (13,971 ) Common stock issued to employee stock trusts (2,918 ) (2,836 ) Total shareholders’ equity 81,549 80,246 Total liabilities and equity $ 273,140 $ 270,513 Parent Company Only—Condensed Cash Flow Statements $ in millions 2019 2018 2017 Net cash provided by (used for) operating activities $ 24,175 $ (1,136 ) $ 3,747 Cash flows from investing activities Proceeds from (payments for): Investment securities: Purchases (22,408 ) (8,155 ) (5,263 ) Proceeds from sales 4,671 1,252 3,620 Proceeds from paydowns and maturities 3,157 3,729 1,038 Securities purchased under agreements to resell with affiliates 15,422 13,057 19,314 Securities sold under agreements to repurchase with affiliates 4,631 (8,753 ) 8,753 Advances to and investments in subsidiaries (9,210 ) 11,841 (35,686 ) Net cash provided by (used for) investing activities (3,737 ) 12,971 (8,224 ) Cash flows from financing activities Proceeds from: Issuance of preferred stock, net of issuance costs 497 — 994 Issuance of Borrowings 8,337 14,918 36,833 Payments for: Borrowings (24,282 ) (21,418 ) (24,668 ) Repurchases of common stock and employee tax withholdings (5,954 ) (5,566 ) (4,292 ) Cash dividends (2,627 ) (2,375 ) (2,085 ) Net change in advances from subsidiaries 4,378 2,122 1,861 Other financing activities 12 — 26 Net cash provided by (used for) financing activities (19,639 ) (12,319 ) 8,669 Effect of exchange rate changes on cash and cash equivalents (271 ) (166 ) 221 Net increase (decrease) in cash and cash equivalents 528 (650 ) 4,413 Cash and cash equivalents, at beginning of period 7,482 8,132 3,719 Cash and cash equivalents, at end of period $ 8,010 $ 7,482 $ 8,132 Cash and cash equivalents: Cash and due from banks $ 9 $ 6 $ 11 Deposits with bank subsidiaries 8,001 7,476 8,120 Restricted cash — — 1 Cash and cash equivalents, at end of period $ 8,010 $ 7,482 $ 8,132 Supplemental Disclosure of Cash Flow Information Cash payments for: Interest $ 4,677 $ 4,798 $ 3,570 Income taxes, net of refunds 1 1,186 437 201 1.Represents total payments, net of refunds, made to various tax authorities and includes taxes paid on behalf of certain subsidiaries that are subsequently settled between the Parent Company and these subsidiaries. The settlements received from subsidiaries were $1.6 billion , $1.6 billion and $1.5 billion for 2019, 2018 and 2017, respectively. On November 25, 2019, the Parent Company issued $500 million of Series L Preferred Stock and on January 15, 2020, the Parent Company redeemed in whole its outstanding Series G Preferred Stock. For further information on preferred stock, see Note 16 . Parent Company’s Borrowings with Original Maturities Greater than One Year $ in millions At At Senior $ 137,138 $ 146,492 Subordinated 10,570 10,090 Total $ 147,708 $ 156,582 Transactions with Subsidiaries The Parent Company has transactions with its consolidated subsidiaries determined on an agreed-upon basis and has guaranteed certain unsecured lines of credit and contractual obligations on certain of its consolidated subsidiaries. Guarantees In the normal course of its business, the Parent Company guarantees certain of its subsidiaries’ obligations under derivative and other financial arrangements. The Parent Company records Trading assets and Trading liabilities, which include derivative contracts, at fair value in its condensed balance sheets. The Parent Company also, in the normal course of its business, provides standard indemnities to counterparties on behalf of its subsidiaries for taxes, including U.S. and foreign withholding taxes, on interest and other payments made on derivatives, securities and stock lending transactions, and certain annuity products. These indemnity payments could be required based on a change in the tax laws or change in interpretation of applicable tax rulings. Certain contracts contain provisions that enable the Parent Company to terminate the agreement upon the occurrence of such events. The maximum potential amount of future payments that the Parent Company could be required to make under these indemnifications cannot be estimated. The Parent Company has not recorded any contingent liability in its condensed financial statements for these indemnifications and believes that the occurrence of any events that would trigger payments under these contracts is remote. The Parent Company has issued guarantees on behalf of its subsidiaries to various U.S. and non-U.S. exchanges and clearinghouses that trade and clear securities and/or futures contracts. Under these guarantee arrangements, the Parent Company may be required to pay the financial obligations of its subsidiaries related to business transacted on or with the exchanges and clearinghouses in the event of a subsidiary’s default on its obligations to the exchange or the clearinghouse. The Parent Company has not recorded any contingent liability in its condensed financial statements for these arrangements and believes that any potential requirements to make payments under these arrangements are remote. Guarantees of Debt Instruments and Warrants Issued by Subsidiaries $ in millions At At Aggregate balance $ 32,996 $ 24,286 Guarantees under Subsidiary Lease Obligations $ in millions At At Aggregate balance 1 $ 925 $ 1,003 1. Amounts primarily relate to the U.K. Finance Subsidiary The Parent Company fully and unconditionally guarantees the securities issued by Morgan Stanley Finance LLC, a wholly owned finance subsidiary. Resolution and Recovery Planning As indicated in the Firm’s 2019 resolution plan submitted to the Federal Reserve and the FDIC, the Parent Company has amended and restated its support agreement with its material entities (including its wholly owned, direct subsidiary Morgan Stanley Holdings LLC (the “Funding IHC”) and certain other subsidiaries, as defined in the Firm’s 2019 resolution plan. Under the secured amended and restated support agreement, in the event of a resolution scenario, the Parent Company would be obligated to contribute all of its material asset s that can be contributed under the terms of the amended and restated support agreement (other than shares in subsidiaries of the Parent Company and certain other assets) (“Contributable Assets”), to the material entities and/or the Funding IHC. The Funding IHC would be obligated to provide capital and liquidity, as applicable, to the material entities. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Quarterly Results (Unaudited) 2019 Quarter $ in millions, except per share data First Second Third Fourth 1, 2, 3 Total non-interest revenues $ 9,272 $ 9,215 $ 8,814 $ 9,424 Net interest 1,014 1,029 1,218 1,433 Net revenues 10,286 10,244 10,032 10,857 Total non-interest expenses 7,331 7,341 7,322 8,124 Income from continuing operations before income taxes 2,955 2,903 2,710 2,733 Provision for income taxes 487 657 492 428 Income from continuing operations 2,468 2,246 2,218 2,305 Net income 2,468 2,246 2,218 2,305 Net income applicable to noncontrolling interests 39 45 45 66 Net income applicable to Morgan Stanley $ 2,429 $ 2,201 $ 2,173 $ 2,239 Preferred stock dividends and other 93 170 113 154 Earnings applicable to Morgan Stanley common shareholders $ 2,336 $ 2,031 $ 2,060 $ 2,085 Earnings (loss) per basic common share 4 : Income from continuing operations $ 1.41 $ 1.24 $ 1.28 $ 1.33 Earnings per basic common share $ 1.41 $ 1.24 $ 1.28 $ 1.33 Earnings (loss) per diluted common share 4 : Income from continuing operations $ 1.39 $ 1.23 $ 1.27 $ 1.30 Earnings per diluted common share $ 1.39 $ 1.23 $ 1.27 $ 1.30 Dividends declared per common share $ 0.30 $ 0.30 $ 0.35 $ 0.35 Book value per common share $ 42.83 $ 44.13 $ 45.49 $ 45.82 2018 Quarter $ in millions, except per share data First Second Third Fourth 1, 2 Total non-interest revenues $ 10,102 $ 9,704 $ 8,936 $ 7,559 Net interest 975 906 936 989 Net revenues 11,077 10,610 9,872 8,548 Total non-interest expenses 7,657 7,501 7,021 6,691 Income from continuing operations before income taxes 3,420 3,109 2,851 1,857 Provision for income taxes 714 640 696 300 Income from continuing operations 2,706 2,469 2,155 1,557 Income (loss) from discontinued operations (2 ) (2 ) (1 ) 1 Net income 2,704 2,467 2,154 1,558 Net income applicable to noncontrolling interests 36 30 42 27 Net income applicable to Morgan Stanley $ 2,668 $ 2,437 $ 2,112 $ 1,531 Preferred stock dividends 93 170 93 170 Earnings applicable to Morgan Stanley common shareholders $ 2,575 $ 2,267 $ 2,019 $ 1,361 Earnings (loss) per basic common share 4 : Income from continuing operations $ 1.48 $ 1.32 $ 1.19 $ 0.81 Income (loss) from discontinued operations — — — — Earnings per basic common share $ 1.48 $ 1.32 $ 1.19 $ 0.81 Earnings (loss) per diluted common share 4 : Income from continuing operations $ 1.46 $ 1.30 $ 1.17 $ 0.80 Income (loss) from discontinued operations (0.01 ) — — — Earnings per diluted common share $ 1.45 $ 1.30 $ 1.17 $ 0.80 Dividends declared per common share $ 0.25 $ 0.25 $ 0.30 $ 0.30 Book value per common share $ 39.19 $ 40.34 $ 40.67 $ 42.20 1. The fourth quarters of 2019 and 2018 included intermittent net discrete tax benefits of $158 million and $111 million , respectively, primarily associated with remeasurement of reserves and related interest as a result of new information pertaining to the resolution of multi-jurisdiction tax examinations. 2. Total non-interest revenues includes impairments of the Investment Management business segment’s interests in two distinct equity method investments in third-party asset managers of $41 million in 2019 and $46 million in 2018 . 3. The fourth quarter of 2019 included specific severance-related costs of approximately $172 million , which are included in Compensation and benefits expenses in the Income statement. These costs were recorded in the business segments approximately as follows: Institutional Securities $124 million , Wealth Management $37 million and Investment Management $11 million . 4. The sum of the quarters’ earnings per common share may not equal the annual amounts due to the averaging effect of the number of shares and share equivalents throughout the year. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On February 20, 2020, the Firm entered into a definitive agreement under which it will acquire E*TRADE Financial Corporation (“E*TRADE”) in an all-stock transaction currently valued at approximately $13 billion , based on the closing price of the Firm’s common stock and the number of E*TRADE's fully diluted shares outstanding on February 19, 2020. Under the terms of the agreement, E*TRADE common stockholders will receive 1.0432 Morgan Stanley common shares for each E*TRADE common share. The acquisition is subject to customary closing conditions, including regulatory approvals and approval by E*TRADE shareholders, and is expected to close in the fourth quarter of 2020. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Financial Information | Basis of Financial Information The financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, compensation, deferred tax assets, the outcome of legal and tax matters, allowance for credit losses, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. Certain reclassifications have been made to prior periods to conform to the current presentation. The Notes are an integral part of the Firm's financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto. |
Consolidation | Consolidation The financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 14 ). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as noncontrolling interests. The net income attributable to noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statements. The portion of shareholders’ equity that is attributable to noncontrolling interests for such subsidiaries is presented as noncontrolling interests, a component of Total equity, in the balance sheets. For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the economic residual risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs ( i.e. , entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method of accounting with net gains and losses recorded within Other revenues (see Note 10 ) unless the Firm has elected to measure the investment at fair value, in which case net gains and losses are recorded within Investments revenues (see Note 3 ). Equity and partnership interests held by entities qualifying for accounting purposes as investment companies are carried at fair value. The Firm’s significant regulated U.S. and international subsidiaries include Morgan Stanley & Co. LLC (“MS&Co.”), Morgan Stanley Smith Barney LLC (“MSSB”), Morgan Stanley & Co. International plc (“MSIP”), Morgan Stanley MUFG Securities Co., Ltd. (“MSMS”), Morgan Stanley Bank, N.A. (“MSBNA”) and Morgan Stanley Private Bank, National Association (“MSPBNA”). |
Revenue Recognition | Revenue Recognition Revenues are recognized when the promised goods or services are delivered to our customers, in an amount that is based on the consideration the Firm expects to receive in exchange for those goods or services when such amounts are not probable of significant reversal. These policies reflect the adoption of Revenue from Contracts with Customers on January 1, 2018. Please see “Accounting Updates Adopted” herein for the more significant differences in policies applied in prior periods. Investment Banking Revenues from investment banking activities consist of revenues earned from underwriting, primarily equity and fixed income securities and loan syndications, and advisory fees, primarily for mergers, acquisitions and restructurings. Underwriting revenues are generally recognized on trade date if there is no uncertainty or contingency related to the amount to be paid. Underwriting costs are deferred and recognized in the relevant non-interest expenses line items when the related underwriting revenues are recorded. Advisory fees are recognized as advice is provided to the client, based on the estimated progress of work and when revenues are not probable of a significant reversal. Advisory costs are recognized as incurred in the relevant non-interest expenses line items, including those reimbursed. Commissions and Fees Commission and fee revenues result from transaction-based arrangements in which the client is charged a fee for the execution of transactions. Such revenues primarily arise from transactions in equity securities; services related to sales and trading activities; and sales of mutual funds, alternative funds, futures, insurance products and options. Commission and fee revenues are recognized on trade date when the performance obligation is satisfied. Asset Management Revenues Asset management, distribution and administration fees are generally based on related asset levels being managed, such as the AUM of a customer’s account or the net asset value of a fund. These fees are generally recognized when services are performed and the fees become known. Management fees are reduced by estimated fee waivers and expense caps, if any, provided to the customer. Performance-based fees not in the form of carried interest are recorded when the annual performance target is met and the revenues are not probable of a significant reversal. Sales commissions paid by the Firm in connection with the sale of certain classes of shares of its open-end mutual fund products are accounted for as deferred commission assets and amortized to expense over the expected life of the contract. The Firm periodically tests deferred commission assets for recoverability based on cash flows expected to be received in future periods. Other asset management and distribution costs are recognized as incurred in the relevant non-interest expenses line items. Carried Interest The Firm is entitled to receive performance-based fees in the form of carried interest when the return in certain funds exceeds specified performance targets. When the Firm earns carried interest from funds as specified performance thresholds are met, that carried interest and any related general or limited partner interest is accounted for under the equity method of accounting and measured based on the Firm’s claim on the NAV of the fund at the reporting date, taking into account the distribution terms applicable to the interest held. See Note 21 for information regarding the net cumulative unrealized amount of performance-based fee revenues at risk of reversal. See Note 13 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received. Other Items Revenues from certain commodities-related contracts are recognized as the promised goods or services are delivered to the customer. Receivables from contracts with customers are recognized in Customer and other receivables in the balance sheets when the underlying performance obligations have been satisfied and the Firm has the right per the contract to bill the customer. Contract assets are recognized in Other assets when the Firm has satisfied its performance obligations but customer payment is conditional. Contract liabilities are recognized in Other liabilities when the Firm has collected payment from a customer based on the terms of the contract, but the underlying performance obligations are not yet satisfied. For contracts with a term of less than one year, incremental costs to obtain the contract are expensed as incurred. Revenues are not discounted when payment is expected within one year. The Firm presents, net within revenues, all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Firm from a customer. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Instruments within Trading assets and Trading liabilities are measured at fair value, either as required or allowed by accounting guidance. These financial instruments primarily represent the Firm’s trading and investment positions and include both cash and derivative products. In addition, securities classified as AFS are measured at fair value. Gains and losses on instruments carried at fair value are reflected in Trading revenues, Investments revenues or Investment banking revenues in the income statements, except for AFS securities (see “Investment Securities—AFS and HTM securities” section herein and Note 6 ) and derivatives accounted for as hedges (see “Hedge Accounting” herein and Note 5 ). Interest income and interest expense are recorded within the income statements depending on the nature of the instrument and related market conventions. When interest is included as a component of the instruments’ fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. Dividend income is recorded in Trading revenues or Investments revenues depending on the business activity. The fair value of OTC financial instruments, including derivative contracts related to financial instruments and commodities, is presented in the accompanying balance sheets on a net-by-counterparty basis, when appropriate. Additionally, the Firm nets the fair value of cash collateral paid or received against the fair value amounts recognized for net derivative positions executed with the same counterparty under the same master netting agreement. Fair Value Option The Firm has elected to measure certain eligible instruments at fair value, including Securities purchased under agreements to resell, Loans and lending commitments, equity method investments and certain other assets, Deposits, Securities sold under agreements to repurchase, Other secured financings and Borrowings. Fair Value Measurement—Definition and Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability ( i.e. , the “exit price”) in an orderly transaction between market participants at the measurement date. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, assumptions are set to reflect those that the Firm believes market participants would use in pricing the asset or liability at the measurement date. Where the Firm manages a group of financial assets, financial liabilities, and nonfinancial items accounted for as derivatives on the basis of its net exposure to either market risks or credit risk, the Firm measures the fair value of that group of financial instruments consistently with how market participants would price the net risk exposure at the measurement date. In determining fair value, the Firm uses various valuation approaches and establishes a hierarchy for inputs used in measuring fair value that requires the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability that were developed based on market data obtained from sources independent of the Firm. Unobservable inputs are inputs that reflect assumptions the Firm believes other market participants would use in pricing the asset or liability that are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the observability of inputs as follows, with Level 1 being the highest and Level 3 being the lowest level: Level 1. Valuations based on quoted prices in active markets that the Firm has the ability to access for identical assets or liabilities. Valuation adjustments, block discounts and discounts for entity-specific restrictions that would not transfer to market participants are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2. Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3. Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from product to product and is affected by a wide variety of factors, including the type of product, whether the product is new and not yet established in the marketplace, the liquidity of markets and other characteristics particular to the product. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Firm in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy. The Firm considers prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2 or from Level 2 to Level 3 of the fair value hierarchy. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the total fair value amount is disclosed in the level appropriate for the lowest level input that is significant to the total fair value of the asset or liability. Valuation Techniques Many cash instruments and OTC derivative contracts have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that a party is willing to pay for an asset. Ask prices represent the lowest price that a party is willing to accept for an asset. The Firm carries positions at the point within the bid-ask range that meets its best estimate of fair value. For offsetting positions in the same financial instrument, the same price within the bid-ask spread is used to measure both the long and short positions. Fair value for many cash instruments and OTC derivative contracts is derived using pricing models. Pricing models take into account the contract terms, as well as multiple inputs, including, where applicable, commodity prices, equity prices, interest rate yield curves, credit curves, correlation, creditworthiness of the counterparty, creditworthiness of the Firm, option volatility and currency rates. Where appropriate, valuation adjustments are made to account for various factors such as liquidity risk (bid-ask adjustments), credit quality, model uncertainty and concentration risk and funding. Adjustments for liquidity risk adjust model-derived mid-market amounts of Level 2 and Level 3 financial instruments for the bid-mid or mid-ask spread required to properly reflect the exit price of a risk position. Bid-mid and mid-ask spreads are marked to levels observed in trade activity, broker quotes or other external third-party data. Where these spreads are unobservable for the particular position in question, spreads are derived from observable levels of similar positions. The Firm applies credit-related valuation adjustments to its Borrowings for which the fair value option was elected and to OTC derivatives. The Firm considers the impact of changes in its own credit spreads based upon observations of the secondary bond market spreads when measuring the fair value for Borrowings. For OTC derivatives, the impact of changes in both the Firm’s and the counterparty’s credit rating is considered when measuring fair value. In determining the expected exposure, the Firm simulates the distribution of the future exposure to a counterparty, then applies market-based default probabilities to the future exposure, leveraging external third-party CDS spread data. Where CDS spread data are unavailable for a specific counterparty, bond market spreads, CDS spread data based on the counterparty’s credit rating or CDS spread data that reference a comparable counterparty may be utilized. The Firm also considers collateral held and legally enforceable master netting agreements that mitigate its exposure to each counterparty. Adjustments for model uncertainty are taken for positions whose underlying models are reliant on significant inputs that are neither directly nor indirectly observable, hence requiring reliance on established theoretical concepts in their derivation. These adjustments are derived by making assessments of the possible degree of variability using statistical approaches and market-based information where possible. The Firm may apply concentration adjustments to certain of its OTC derivative portfolios to reflect the additional cost of closing out a particularly large risk exposure. Where possible, these adjustments are based on observable market information, but in many instances, significant judgment is required to estimate the costs of closing out concentrated risk exposures due to the lack of liquidity in the marketplace. The Firm applies an FVA in the fair value measurements of OTC uncollateralized or partially collateralized derivatives and in collateralized derivatives where the terms of the agreement do not permit the reuse of the collateral received. In general, FVA reflects a market funding risk premium inherent in the noted derivative instruments. The methodology for measuring FVA leverages the Firm’s existing credit-related valuation adjustment calculation methodologies, which apply to both assets and liabilities. See Note 3 for a description of valuation techniques applied to the major categories of financial instruments measured at fair value. Assets and Liabilities Measured at Fair Value on a Non-recurring Basis Certain of the Firm’s assets and liabilities are measured at fair value on a non-recurring basis. The Firm incurs losses or gains for any adjustments of these assets or liabilities to fair value. For assets and liabilities measured at fair value on a non-recurring basis, fair value is determined by using various valuation approaches. The same hierarchy for inputs as described above, which requires that observable inputs be used when available, is used in measuring fair value for these items. For further information on financial assets and liabilities that are measured at fair value on a recurring and non-recurring basis, see Note 3 . |
Offsetting of Derivative Instruments | Offsetting of Derivative Instruments In connection with its derivative activities, the Firm generally enters into master netting agreements and collateral agreements with its counterparties. These agreements provide the Firm with the right, in the event of a default by the counterparty, to net a counterparty’s rights and obligations under the agreement and to liquidate and set off cash collateral against any net amount owed by the counterparty. Derivatives with enforceable master netting agreements are reported net of cash collateral received and posted. However, in certain circumstances, the Firm may not have such an agreement in place; the relevant insolvency regime may not support the enforceability of the master netting agreement or collateral agreement; or the Firm may not have sought legal advice to support the enforceability of the agreement. In cases where the Firm has not determined an agreement to be enforceable, the related amounts are not offset (see Note 5 ). The Firm’s policy is generally to receive securities and cash posted as collateral (with rights of rehypothecation), irrespective of the enforceability determination regarding the master netting and collateral agreement. In certain cases, the Firm may agree for such collateral to be posted to a third-party custodian under a control agreement that enables it to take control of such collateral in the event of a counterparty default. The enforceability of the master netting agreement is taken into account in the Firm’s risk management practices and application of counterparty credit limits. For information related to offsetting of derivatives and certain collateralized transactions, see Notes 5 and 7 , respectively. |
Hedge Accounting | Hedge Accounting The Firm applies hedge accounting using various derivative financial instruments for the following types of hedges: hedges of changes in the fair value of assets and liabilities due to the risk being hedged (fair value hedges); and hedges of net investments in foreign operations whose functional currency is different from the reporting currency of the Parent Company (net investment hedges). These financial instruments are included within Trading assets—Derivative and other contracts or Trading liabilities—Derivative and other contracts in the balance sheets. For hedges where hedge accounting is being applied, the Firm performs effectiveness testing and other procedures. Fair Value Hedges—Interest Rate Risk The Firm’s designated fair value hedges consist of interest rate swaps designated as hedges of changes in the benchmark interest rate of certain fixed rate AFS securities and senior borrowings. In the fourth quarter of 2019, the Firm also began designating interest rate swaps as fair value hedges of changes in the benchmark interest rate of certain fixed rate deposits. The Firm is permitted to hedge the full, or part of the, contractual term of the hedged instrument. The Firm uses regression analysis to perform an ongoing prospective and retrospective assessment of the effectiveness of these hedging relationships. A hedging relationship is deemed effective if the change in fair value of the hedging instrument (derivative) and the change in fair value of the hedged item (AFS security, deposit liability or borrowing), due to changes in the benchmark interest rate, offset within a range of 80% to 125% . The Firm considers the impact of valuation adjustments related to counterparty credit spreads and its own credit spreads to determine whether they would cause the hedging relationship to be ineffective. For qualifying fair value hedges of benchmark interest rates, the change in the fair value of the derivative, offset by the change in the fair value attributable to the change in the benchmark interest rate risk of the hedged asset (liability), is recognized in earnings each period as a component of Interest income (expense). For AFS securities, the change in fair value of the hedged item due to changes other than the risk being hedged will continue to be reported in OCI. When a derivative is de-designated as a hedge, any basis adjustment remaining on the hedged asset (liability) is amortized to Interest income (expense) over the remaining life of the asset (liability) using the effective interest method. Net Investment Hedges The Firm uses forward foreign exchange contracts to manage a portion of the currency exposure relating to its net investments in foreign operations. To the extent that the notional amounts of the hedging instruments equal the portion of the investments being hedged and the underlying exchange rate of the derivative hedging instrument is the same as the exchange rate between the functional currency of the investee and the intermediate parent entity’s functional currency, it is considered to be perfectly effective, with no income statement recognition. If these exchange rates are not the same, the Firm uses regression analysis to assess the prospective and retrospective effectiveness of the hedge relationships. The gain or loss from revaluing hedges of net investments in foreign operations at the spot rate is reported within AOCI. The forward points on the hedging instruments are excluded from hedge effectiveness testing and changes in the fair value of this excluded component are recorded currently in Interest income. For further information on derivative instruments and hedging activities, see Note 5 . |
Investment Securities - Available-for-Sale and Held-to-Maturity | Investment Securities—Available-for-Sale and Held-to-Maturity AFS securities are reported at fair value in the balance sheets with unrealized gains and losses reported in AOCI, net of tax, unless such securities are designated in a fair value hedge. Interest income, including amortization of premiums and accretion of discounts, is included in Interest income in the income statements. Realized gains and losses on sales of AFS securities are classified within Other revenues in the income statements (see Note 6 ). The Firm utilizes the “first-in, first-out” method as the basis for determining the cost of AFS securities. HTM securities are reported at amortized cost in the balance sheets. Interest income, including amortization of premiums and accretion of discounts on HTM securities, is included in Interest income in the income statements. OTTI AFS securities and HTM securities with a current fair value less than their amortized cost are analyzed as part of the Firm’s periodic assessment of temporary versus OTTI at the individual security level. A temporary impairment is recognized in AOCI for AFS securities. OTTI is recognized in the income statements with the exception of the non-credit portion related to a security that the Firm does not intend to sell and is not likely to be required to sell, which is recognized in AOCI. For AFS securities that the Firm either has the intent to sell or that the Firm is likely to be required to sell before recovery of its amortized cost basis, the impairment is considered OTTI. For those AFS securities that the Firm does not have the intent to sell or is not likely to be required to sell, and for all HTM securities, the Firm evaluates whether it expects to recover the entire amortized cost basis of the security. If the Firm does not expect to recover the entire amortized cost of those AFS or HTM securities, the impairment is considered OTTI, and the Firm determines what portion of the impairment relates to a credit loss and what portion relates to non-credit factors. A credit loss exists if the present value of cash flows expected to be collected (discounted at the implicit interest rate at acquisition of the security or discounted at the effective yield for securities that incorporate changes in prepayment assumptions) is less than the amortized cost basis of the security. Changes in prepayment assumptions alone are not considered to result in a credit loss. When determining if a credit loss exists, the Firm considers relevant information, including: • the length of time and the extent to which the fair value has been less than the amortized cost basis; • adverse conditions specifically related to the security, its industry or geographic area; • changes in the financial condition of the issuer of the security, the presence of explicit or implicit guarantees of repayment by the U.S. Government for U.S. Government and Agency securities or, in the case of an asset-backed debt security, changes in the financial condition of the underlying loan obligors; • the historical and implied volatility of the fair value of the security; • the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future; • failure of the issuer of the security to make scheduled interest or principal payments; • the current rating and any changes to the rating of the security by a rating agency; • recoveries or additional declines in fair value after the balance sheet date. When estimating the present value of expected cash flows, information utilized includes the remaining payment terms of the security, prepayment speeds, financial condition of the issuer(s), expected defaults and the value of any underlying collateral. |
Loans | Loans The Firm accounts for loans based on the following categories: loans held for investment; loans held for sale; and loans at fair value. Loans Held for Investment Loans held for investment are reported at outstanding principal adjusted for any charge-offs, the allowance for loan losses, any unamortized deferred fees or costs for originated loans, and any unamortized premiums or discounts for purchased loans. Interest Income. Interest income on performing loans held for investment is accrued and recognized as interest income at the contractual rate of interest. Purchase price discounts or premiums, as well as net deferred loan fees or costs, are amortized into interest income over the life of the loan to produce a level rate of return. Allowance for Loan Losses. The allowance for loan losses represents an estimate of probable losses related to loans specifically identified for impairment in addition to the probable losses inherent in the held-for-investment loan portfolio. The Firm utilizes the U.S. banking agencies’ definition of criticized exposures, which consist of the Special Mention, Substandard, Doubtful and Loss categories as credit quality indicators. For further information on the credit quality indicators, see Note 8 . Substandard loans are regularly reviewed for impairment. Factors considered by management when determining impairment include payment status, fair value of collateral, and probability of collecting scheduled principal and interest payments when due. The impairment analysis required depends on the nature and type of loans. Loans classified as Doubtful or Loss are considered impaired. There are two components of the allowance for loan losses: the specific allowance component and the inherent allowance component. The specific allowance component of the allowance for loan losses is used to estimate probable losses for exposures that have been specifically identified for impairment analysis by the Firm and determined to be impaired. When a loan is specifically identified for impairment, the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the observable market price of the loan or the fair value of the collateral if the loan is collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the sale or operation of the underlying collateral. If the present value of the expected future cash flows (or alternatively, the observable market price of the loan or the fair value of the collateral) is less than the recorded investment in the loan, then the Firm recognizes an allowance and a charge to the provision for loan losses within Other revenues. The inherent allowance component of the allowance for loan losses represents an estimate of the probable losses inherent in the loan portfolio and includes loans that have not been identified as impaired. The Firm maintains methodologies by loan product for calculating an allowance for loan losses that estimates the inherent losses in the loan portfolio. Generally, inherent losses in the portfolio for non-impaired loans are estimated using statistical analysis and judgment regarding the exposure at default, the probability of default and the loss given default. Qualitative and environmental factors such as economic and business conditions, nature and volume of the portfolio, and lending terms and volume and severity of past due loans may also be considered in the calculations. The allowance for loan losses is maintained at a level to ensure that it is reasonably likely to adequately absorb the estimated probable losses inherent in the portfolio. When the Firm recognizes an allowance, there is also a charge to the provision for loan losses within Other revenues. Troubled Debt Restructurings. The Firm may modify the terms of certain loans for economic or legal reasons related to a borrower’s financial difficulties by granting one or more concessions that the Firm would not otherwise consider. Such modifications are accounted for and reported as a TDR. A loan that has been modified in a TDR is generally considered to be impaired and is evaluated for the extent of impairment using the Firm’s specific allowance methodology. TDRs are also generally classified as nonaccrual and may be returned to accrual status only after considering the borrower’s sustained repayment performance for a reasonable period. Nonaccrual Loans. The Firm places loans on nonaccrual status if principal or interest is past due for a period of 90 days or more or payment of principal or interest is in doubt unless the obligation is well-secured and in the process of collection. A loan is considered past due when a payment due according to the contractual terms of the loan agreement has not been remitted by the borrower. Substandard loans, if identified as impaired, are categorized as nonaccrual, as are loans classified as Doubtful or Loss. Payments received on nonaccrual loans held for investment are applied to principal if there is doubt regarding the ultimate collectibility of principal. If collection of the principal of nonaccrual loans held for investment is not in doubt, interest income is realized on a cash basis. If neither principal nor interest collection is in doubt, loans are placed on accrual status and interest income is recognized using the effective interest method. Loans that are on nonaccrual status may not be restored to accrual status until all delinquent principal and/or interest has been brought current after a reasonable period of performance, typically a minimum of six months. Charge-offs. The Firm charges off a loan in the period that it is deemed uncollectible and records a reduction in the allowance for loan losses and the balance of the loan. In general, any portion of the recorded investment in a collateral dependent loan (including any capitalized accrued interest, net deferred loan fees or costs, and unamortized premium or discount) in excess of the fair value of the collateral that can be identified as uncollectible, and is therefore deemed a confirmed loss, is charged off against the allowance for loan losses. In addition, for loan transfers from loans held for investment to loans held for sale, at the time of transfer any reduction in the loan value is reflected as a charge-off of the recorded investment, resulting in a new cost basis. Lending Commitments. The Firm records the liability and related expense for the credit exposure related to commitments to fund loans that will be held for investment in a manner similar to outstanding loans discussed above. The analysis also incorporates a credit conversion factor, which is the expected utilization of the undrawn commitment. The liability and expense for the credit exposure are recorded in Other liabilities and accrued expenses in the balance sheets, and Other non-interest expenses in the income statements, respectively. For more information regarding loan commitments, standby letters of credit and financial guarantees, see Note 13 . Loans Held for Sale Loans held for sale are measured at the lower of cost or fair value, with valuation changes recorded in Other revenues. The Firm determines the valuation allowance on an individual loan basis, except for residential mortgage loans for which the valuation allowance is determined at the loan product level. Any decreases in fair value below the initial carrying amount and any recoveries in fair value up to the initial carrying amount are recorded in Other revenues. Increases in fair value above initial carrying value are not recognized. Interest income on loans held for sale is accrued and recognized based on the contractual rate of interest. Loan origination fees or costs and purchase price discounts or premiums are deferred as an adjustment to the loan’s cost basis until the related loan is sold and, as such, are included in the periodic determination of the lower of cost or fair value adjustments and the gain or loss recognized at the time of sale. Lending Commitments . Commitments to fund mortgage loans held for sale are derivatives and are reported in Trading assets or Trading liabilities in the balance sheets with an offset to Trading revenues in the income statements. For commitments to fund non-mortgage loans the Firm records the liability and related expense for the fair value exposure below cost of such commitments in Other liabilities and accrued expenses in the balance sheets with an offset to Other revenues in the income statements. Loans and lending commitments held for sale are subject to the nonaccrual policies described above in the Loans Held for Investment—Nonaccrual Loans section. Because loans and lending commitments held for sale are recognized at the lower of cost or fair value, the allowance for loan losses and charge-off policies does not apply to these loans. Loans at Fair Value Loans for which the fair value option is elected are carried at fair value, with changes in fair value recognized in earnings. Loans carried at fair value are not evaluated for purposes of recording an allowance for loan losses. For further information on loans carried at fair value and classified as Trading assets and Trading liabilities , see Note 3 . Lending Commitments. The Firm records the liability and related expense for the fair value exposure related to commitments to fund loans that will be measured at fair value. The liability is recorded in Trading liabilities in the balance sheets, and the expense is recorded in Trading revenues in the income statements. Loans and lending commitments at fair value are subject to the nonaccrual policies described above in the Loans Held for Investment—Nonaccrual Loans section. Because such loans and lending commitments are reported at fair value, the allowance for loan losses and charge-off policies do not apply to these loans. For further information on loans, see Note 8 . |
Transfer of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when the Firm has relinquished control over the transferred assets. Any related gain or loss on sale is recorded in Net revenues. Transfers that are not accounted for as sales are treated as collateralized financings. Securities borrowed or purchased under agreements to resell and securities loaned or sold under agreements to repurchase are treated as collateralized financings (see Note 7 ). Securities purchased under agreements to resell (“reverse repurchase agreements”) and Securities sold under agreements to repurchase (“repurchase agreements”) are carried in the balance sheets at the amount of cash paid or received, plus accrued interest, except for certain reverse repurchase and repurchase agreements for which the Firm has elected the fair value option (see Note 4 ). Where appropriate, repurchase agreements and reverse repurchase agreements with the same counterparty are reported on a net basis. Securities borrowed and securities loaned are recorded at the amount of cash collateral advanced or received. In instances where the Firm is the lender in securities-for-securities transactions and is permitted to sell or repledge these securities, the fair value of the collateral received is reported in Trading assets, and the related obligation to return the collateral is reported in Trading liabilities in the balance sheets. Securities-for-securities transactions where the Firm is the borrower are not included in the balance sheets. |
Premises, Equipment and Software Costs | Premises, Equipment and Software Costs Premises, equipment and software costs consist of buildings, leasehold improvements, furniture, fixtures, computer and communications equipment, power generation assets and software (externally purchased and developed for internal use). Premises, equipment and software costs are stated at cost less accumulated depreciation and amortization and are included in Other assets in the balance sheets. Depreciation and amortization are provided by the straight-line method over the estimated useful life of the asset. Estimated Useful Lives of Assets in years Estimated Useful Life Buildings 39 Leasehold improvements—Building term of lease to 25 Leasehold improvements—Other term of lease to 15 Furniture and fixtures 7 Computer and communications equipment 3 to 9 Power generation assets 15 to 29 Software costs 2 to 10 Premises, equipment and software costs are tested for impairment whenever events or changes in circumstances suggest that an asset’s carrying value may not be fully recoverable. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Firm tests goodwill for impairment on an annual basis and on an interim basis when certain events or circumstances exist. The Firm tests goodwill for impairment at the reporting unit level, which is generally at the level of or one level below its business segments. For both the annual and interim tests, the Firm has the option to either (i) perform a quantitative impairment test or (ii) first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, in which case the quantitative test would be performed. When performing a quantitative impairment test, the Firm compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, the goodwill impairment loss is equal to the excess of the carrying value over the fair value, limited to the carrying amount of goodwill allocated to that reporting unit. The estimated fair values of the reporting units are derived based on valuation techniques the Firm believes market participants would use for each respective reporting unit. The estimated fair values are generally determined by utilizing a discounted cash flow methodology or methodologies that incorporate price-to-book and price-to-earnings multiples of certain comparable companies. Intangible assets are amortized over their estimated useful lives and are reviewed for impairment on an interim basis when impairment indicators are present. Impairment losses are recorded within Other expenses in the income statements. |
Earnings per Common Share | Earnings per Common Share Basic EPS is computed by dividing earnings available to Morgan Stanley common shareholders by the weighted average number of common shares outstanding for the period. Earnings available to Morgan Stanley common shareholders represents net income applicable to Morgan Stanley reduced by preferred stock dividends. Common shares outstanding include common stock and vested RSUs where recipients have satisfied either the explicit vesting terms or retirement-eligibility requirements. Diluted EPS reflects the assumed conversion of all dilutive securities. Share-based awards that pay dividend equivalents subject to vesting are included in diluted shares outstanding (if dilutive) under the treasury stock method. The Firm has granted PSUs that vest and convert to shares of common stock only if predetermined performance and market goals are satisfied. Since the issuance of the shares is contingent upon the satisfaction of certain conditions, the PSUs are included in diluted EPS based on the number of shares (if any) that would be issuable if the end of the reporting period was the end of the contingency period. For further information on diluted earnings (loss) per common share, see Note 16 to the financial statements. |
Deferred Compensation | Deferred Compensation Stock-Based Compensation The Firm measures compensation expense for stock-based awards at fair value. The Firm determines the fair value of RSUs (including PSUs with non-market performance conditions) based on the grant-date fair value of its common stock, measured as the volume-weighted average price on the date of grant (“VWAP”). The fair value of RSUs not entitled to dividends until conversion is measured at VWAP reduced by the present value of dividends expected to be paid on the underlying shares prior to scheduled conversion date. PSUs that contain market-based conditions are valued using a Monte Carlo valuation model. Compensation expense is recognized over the relevant vesting period for each separate vesting portion of the award. Compensation expense for awards with performance conditions is recognized based on the probable outcome of the performance condition at each reporting date. Compensation expense for awards with market-based conditions is recognized irrespective of the probability of the market condition being achieved and is not reversed if the market condition is not met. The Firm accounts for forfeitures as they occur. Stock-based awards generally contain claw back and cancellation provisions. Certain awards provide the Firm discretion to claw back or cancel all or a portion of the award under specified circumstances. Compensation expense for those awards is adjusted for changes in the fair value of the Firm’s common stock or the relevant model valuation, as appropriate, until conversion, exercise or expiration. Employee Stock Trusts In connection with certain stock-based compensation plans, the Firm, at its discretion, has established employee stock trusts to provide common stock voting rights to certain employees who hold outstanding RSUs. The assets of the employee stock trusts are consolidated with those of the Firm and are generally accounted for in a manner similar to treasury stock, where the shares of common stock outstanding reported in Common stock issued to employee stock trusts are offset by an equal amount reported in Employee stock trusts in the balance sheets. The Firm uses the grant-date fair value of stock-based compensation as the basis for recognition of the assets in the employee stock trusts. Subsequent changes in the fair value are not recognized as the Firm’s stock-based compensation plans must be settled by delivery of a fixed number of shares of the Firm’s common stock. Deferred Cash-Based Compensation Compensation expense for deferred cash-based compensation plans is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the relevant vesting period for each separate vesting portion of deferred awards. Compensation expense for these awards is adjusted based on notional earnings of the referenced investments until distribution. The Firm invests directly, as a principal, in financial instruments or other investments to economically hedge its obligations under its deferred cash-based compensation plans. Changes in the value of such investments made by the Firm are recorded in Trading revenues and Investments revenues. Although changes in compensation expense resulting from changes in the fair value of the referenced investments will generally be offset by changes in the fair value of investments made by the Firm, there is typically a timing difference between the immediate recognition of gains and losses on the Firm’s investments and the deferred recognition of the related compensation expense over the vesting period. Retirement-Eligible Employee Compensation For year-end stock-based awards and deferred cash-based compensation awards anticipated to be granted to retirement-eligible employees under award terms that do not contain a future service requirement, the Firm accrues the estimated cost of the awards over the course of the calendar year preceding the grant date, which reflects the period over which the compensation is earned. Carried Interest Compensation The Firm generally recognizes compensation expense for any portion of carried interest (both realized and unrealized) that is allocated to employees. For information on performance-based fees in the form of carried interest, which are directly related to carried interest compensation, see “Revenue Recognition—Carried Interest” herein. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recorded based upon the temporary differences between the financial statement and income tax bases of assets and liabilities using currently enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income tax expense (benefit) in the period that includes the enactment date. Such effects are recorded in income tax expense (benefit) from continuing operations regardless of where deferred taxes were originally recorded. The Firm recognizes net deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Firm considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and results of recent operations. When performing the assessment, the Firm considers all types of deferred tax assets in combination with each other, regardless of the origin of the underlying temporary difference. If a deferred tax asset is determined to be unrealizable, a valuation allowance is established. If the Firm subsequently determines that it would be able to realize deferred tax assets in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Firm recognizes tax expense associated with GILTI included in the Tax Cuts and Jobs Act (“Tax Act”) as it is incurred as part of the current income taxes to be paid or refunded for the current period. Uncertain tax positions are recorded on the basis of a two-step process, whereby (i) the Firm determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (ii) for those tax positions that meet this threshold, the Firm recognizes the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with the related tax authority. Interest and penalties related to unrecognized tax benefits are recognized as a component of the provision for income taxes. |
Foreign Currencies | Foreign Currencies Assets and liabilities of operations with non-U.S. dollar functional currencies are translated at year-end rates of exchange. Gains or losses resulting from translating foreign currency financial statements, net of hedge gains or losses and related tax effects, are reflected in AOCI in the balance sheets. Gains or losses resulting from remeasurement of foreign currency transactions are included in net income, and amounts recognized in the income statement are translated at the rate of exchange on the respective date of recognition for each amount. |
Accounting Standards Adopted | Accounting Updates Adopted in 2019 See Note 16 for a summary of the Retained earnings impact of these adoptions. Leases Upon the adoption of Leases, the Firm began recognizing in the balance sheet leases with terms exceeding one year as right-of-use (“ROU”) assets and corresponding liabilities. The adoption resulted in an increase to Retained earnings of approximately $63 million , net of tax, related to deferred revenue from previously recorded sale-leaseback transactions. At transition on January 1, 2019, the adoption also resulted in a balance sheet gross-up of approximately $4 billion reflected in Other assets and Other liabilities and accrued expenses. See Note 10 for lease disclosures, including amounts reflected in the December 31, 2019 balance sheet. Prior period amounts were not restated. As allowed by the guidance, the Firm elected not to reassess the following at transition: whether existing contracts are or contain leases; and for existing leases, lease classification and initial direct costs. In addition, the Firm continues to account for existing land easements as service contracts. Both at transition and for new leases thereafter, ROU assets and lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term, including non-lease components such as fixed common area maintenance costs and other fixed costs such as real estate taxes and insurance. The discount rates used in determining the present value of leases are the Firm’s incremental borrowing rates, developed based upon each lease’s term and currency of payment. The lease term includes options to extend or terminate the lease when it is reasonably certain that the Firm will exercise that option. For operating leases, the ROU assets also include any prepaid lease payments and initial direct costs incurred and are reduced by lease incentives. For these leases, lease expense is recognized on a straight-line basis over the lease term if the ROU asset has not been impaired or abandoned. Derivatives and Hedging (ASU 2018-16) The amendments in this update permit use of the OIS rate based on the Secured Overnight Financing Rate as a U.S. benchmark interest rate for hedge accounting purposes. The Firm adopted this update on a prospective basis for qualifying new or redesignated hedging relationships. This update did not impact the Firm’s pre-existing hedges. Accounting Update Adopted in 2018 See Note 16 for a summary of the Retained earnings impact of this adoption. Revenue Recognition The Firm adopted Revenues from Contracts with Customers using the modified retrospective method. Our revenue recognition policies are reflective of this update since adoption, while 2017 revenues and expenses remain as presented under the prior accounting policy. The more significant differences to the accounting policy in place prior to adoption were: (i) the presentation of certain costs related to underwriting and advisory activities in that such costs were recorded net of Investment Banking revenues versus the current practice of recording the costs in the relevant non-compensation expense line item; (ii) the presentation of certain costs related to the selling and distribution of investment funds in that such costs were recorded net of Asset Management revenues versus the current practice of recording the costs in the relevant non-compensation expense line item; (iii) the recognition of certain performance-based fees from fund management activities not in the form of carried interest that were recognized quarterly versus the current practice of deferring the revenues until the fees are not probable of a significant reversal, and; (iv) the timing of the recognition of advisory fees in that such fees were recorded when realizable versus the current practice of recognizing the fees as advice is provided to the client, based on the estimated progress of work and when the revenue is not probable of a significant reversal. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Assets | Estimated Useful Lives of Assets in years Estimated Useful Life Buildings 39 Leasehold improvements—Building term of lease to 25 Leasehold improvements—Other term of lease to 15 Furniture and fixtures 7 Computer and communications equipment 3 to 9 Power generation assets 15 to 29 Software costs 2 to 10 |
Fair Values (Tables)
Fair Values (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis At December 31, 2019 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at fair value Trading assets: U.S. Treasury and agency securities $ 36,866 $ 28,992 $ 22 $ — $ 65,880 Other sovereign government obligations 23,402 4,347 5 — 27,754 State and municipal securities — 2,790 1 — 2,791 MABS — 1,690 438 — 2,128 Loans and lending commitments 2 — 6,253 5,073 — 11,326 Corporate and other debt — 22,124 1,396 — 23,520 Corporate equities 3 123,942 652 97 — 124,691 Derivative and other contracts: Interest rate 1,265 182,977 1,239 — 185,481 Credit — 6,658 654 — 7,312 Foreign exchange 15 64,260 145 — 64,420 Equity 1,219 48,927 922 — 51,068 Commodity and other 1,079 7,255 2,924 — 11,258 Netting 1 (2,794 ) (235,947 ) (993 ) (47,804 ) (287,538 ) Total derivative and other contracts 784 74,130 4,891 (47,804 ) 32,001 Investments 4 481 252 858 — 1,591 Physical commodities — 1,907 — — 1,907 Total trading assets 4 185,475 143,137 12,781 (47,804 ) 293,589 Investment securities —AFS 32,902 29,321 — — 62,223 Securities purchased under agreements to resell — 4 — — 4 Total assets at fair value $ 218,377 $ 172,462 $ 12,781 $ (47,804 ) $ 355,816 At December 31, 2019 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at fair value Deposits $ — $ 1,920 $ 179 $ — $ 2,099 Trading liabilities: U.S. Treasury and agency securities 11,191 34 — — 11,225 Other sovereign government obligations 21,837 1,332 1 — 23,170 Corporate and other debt — 7,410 — — 7,410 Corporate equities 3 63,002 79 36 — 63,117 Derivative and other contracts: Interest rate 1,144 171,025 462 — 172,631 Credit — 7,391 530 — 7,921 Foreign exchange 6 67,473 176 — 67,655 Equity 1,200 49,062 2,606 — 52,868 Commodity and other 1,194 7,118 1,312 — 9,624 Netting 1 (2,794 ) (235,947 ) (993 ) (42,531 ) (282,265 ) Total derivative and other contracts 750 66,122 4,093 (42,531 ) 28,434 Total trading liabilities 96,780 74,977 4,130 (42,531 ) 133,356 Securities sold under agreements to repurchase — 733 — — 733 Other secured financings — 7,700 109 — 7,809 Borrowings — 60,373 4,088 — 64,461 Total liabilities at fair value $ 96,780 $ 145,703 $ 8,506 $ (42,531 ) $ 208,458 At December 31, 2018 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at fair value Trading assets: U.S. Treasury and agency securities $ 38,767 $ 29,594 $ 54 $ — $ 68,415 Other sovereign government obligations 28,395 5,529 17 — 33,941 State and municipal securities — 3,161 148 — 3,309 MABS — 2,154 354 — 2,508 Loans and lending commitments 2 — 4,055 6,870 — 10,925 Corporate and other debt — 18,129 1,076 — 19,205 Corporate equities 3 93,626 522 95 — 94,243 Derivative and other contracts: Interest rate 2,793 155,027 1,045 — 158,865 Credit — 5,707 421 — 6,128 Foreign exchange 62 63,023 161 — 63,246 Equity 1,256 45,596 1,022 — 47,874 Commodity and other 963 8,517 2,992 — 12,472 Netting 1 (4,151 ) (210,190 ) (896 ) (44,175 ) (259,412 ) Total derivative and other contracts 923 67,680 4,745 (44,175 ) 29,173 Investments 4 412 293 757 — 1,462 Physical commodities — 536 — — 536 Total trading assets 4 162,123 131,653 14,116 (44,175 ) 263,717 Investment securities —AFS 36,399 24,662 — — 61,061 Intangible assets — 5 — — 5 Total assets at fair value $ 198,522 $ 156,320 $ 14,116 $ (44,175 ) $ 324,783 At December 31, 2018 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at fair value Deposits $ — $ 415 $ 27 $ — $ 442 Trading liabilities: U.S. Treasury and agency securities 11,272 543 — — 11,815 Other sovereign government obligations 21,391 1,454 — — 22,845 Corporate and other debt — 8,550 1 — 8,551 Corporate equities 3 56,064 199 15 — 56,278 Derivative and other contracts: Interest rate 2,927 142,746 427 — 146,100 Credit — 5,772 381 — 6,153 Foreign exchange 41 63,379 86 — 63,506 Equity 1,042 47,091 2,507 — 50,640 Commodity and other 1,228 6,872 940 — 9,040 Netting 1 (4,151 ) (210,190 ) (896 ) (32,944 ) (248,181 ) Total derivative and other contracts 1,087 55,670 3,445 (32,944 ) 27,258 Total trading liabilities 89,814 66,416 3,461 (32,944 ) 126,747 Securities sold under agreements to repurchase — 812 — — 812 Other secured financings — 5,037 208 — 5,245 Borrowings — 47,378 3,806 — 51,184 Total liabilities at fair value $ 89,814 $ 120,058 $ 7,502 $ (32,944 ) $ 184,430 MABS—Mortgage- and asset-backed securities 1. For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Netting.” Positions classified within the same level that are with the same counterparty are netted within that level. For further information on derivative instruments and hedging activities, see Note 5 . 2. For a further breakdown by type, see the following Detail of Loans and Lending Commitments at Fair Value table. 3. For trading purposes, the Firm holds or sells short equity securities issued by entities in diverse industries and of varying sizes. 4. Amounts exclude certain investments that are measured based on NAV per share, which are not classified in the fair value hierarchy. For additional disclosure about such investments, see “Net Asset Value Measurements” herein. |
Schedule of Loans and Lending Commitments at Fair Value | Detail of Loans and Lending Commitments at Fair Value $ in millions At At Corporate $ 8,036 $ 9,171 Residential real estate 1,192 1,153 Commercial real estate 2,098 601 Total $ 11,326 $ 10,925 |
Schedule of Unsettled Fair Value of Futures Contracts | Unsettled Fair Value of Futures Contracts 1 $ in millions At At Customer and other receivables, net $ 365 $ 615 1. These contracts are primarily Level 1, actively traded, valued based on quoted prices from the exchange and are excluded from the previous recurring fair value tables. |
Schedule of Valuation Techniques and Unobservable Inputs | Valuation Techniques and Unobservable Inputs Balance / Range (Average 1 ) $ in millions,except inputs At December 31, 2019 At December 31, 2018 Assets at Fair Value on a Recurring Basis U.S. Treasury and agency securities $ 22 $ 54 Comparable pricing: Bond price N/M 100 to 104 points State and municipal securities $ 1 $ 148 Comparable pricing: Bond price N/M 94 to 100 points (96 points) MABS $ 438 $ 354 Comparable pricing: Bond price 0 to 96 points (47 points) 0 to 97 points (38 points) Loans and lending commitments $ 5,073 $ 6,870 Margin loan model: Discount rate 1% to 9% (2%) 1% to 7% (2%) Volatility skew 15% to 80% (28%) 19% to 56% (28%) Credit Spread 9 to 39 bps (19 bps) 14 to 90 bps (36 bps) Comparable pricing: Loan price 69 to 100 points (93 points) 60 to 101 points (95 points) Corporate and other debt $ 1,396 $ 1,076 Comparable pricing: Bond price 11 to 108 points (84 points) 12 to 100 points (72 points) Discounted cash flow: Recovery rate 35 % 20 % Discount rate N/M 15% to 21% (16%) Option model: At the money volatility 21 % 24% to 78% (50%) Balance / Range (Average 1 ) $ in millions,except inputs At December 31, 2019 At December 31, 2018 Corporate equities $ 97 $ 95 Comparable pricing: Equity price 100 % 100 % Investments $ 858 $ 757 Discounted cash flow: WACC 8% to 17% (15%) 9% to 15% (10%) Exit multiple 7 to 16 times (11 times) 7 to 10 times (10 times) Market approach: EBITDA multiple 7 to 24 times (11 times) 6 to 24 times (12 times) Comparable pricing: Equity price 75% to 100% (99%) 75% to 100% (96%) Net derivative and other contracts: Interest rate $ 777 $ 618 Option model: IR volatility skew 24% to 156% (63% / 59%) 22% to 95% (48% / 51%) IR curve correlation 47% to 90% (72% / 72%) N/M Bond volatility 4% to 15% (13% / 14%) N/M Inflation volatility 24% to 63% (44% / 41%) 23% to 65% (44% / 40%) IR curve 1 % 1 % Credit $ 124 $ 40 Credit default swap model: Cash-synthetic 6 points 8 to 9 points (9 points) Bond price 0 to 104 points (45 points) 0 to 75 points (26 points) Credit spread 9 to 469 bps (81 bps) 246 to 499 bps (380 bps) Funding spread 47 to 117 bps (84 bps) 47 to 98 bps (93 bps) Correlation model: Credit correlation 29% to 62% (36%) 36% to 69% (44%) Foreign exchange 2 $ (31 ) $ 75 Option model: IR - FX correlation 32% to 56% (46% / 46%) 53% to 56% (55% / 55%) IR volatility skew 24% to 156% (63% / 59%) 22% to 95% (48% / 51%) IR curve 10% to 11% (10% / 10%) N/M Contingency 85% to 95% (94% / 95%) 90% to 95% (93% / 95%) Equity 2 $ (1,684 ) $ (1,485 ) Option model: At the money 9% to 90% (36%) 17% to 63% (38%) Volatility skew -2% to 0% (-1%) -2% to 0% (-1%) Equity correlation 5% to 98% (70%) 5% to 96% (71%) FX correlation -79% to 60% (-37%) -60% to 55% (-26%) IR correlation -11% to 44% (18% / 16%) -7% to 45% (15% / 12%) Commodity and other $ 1,612 $ 2,052 Option model: Forward power $3 to $182 ($28) per MWh $3 to $185 ($31) per MWh Commodity volatility 7% to 183% (18%) 7% to 187% (17%) Cross-commodity 43% to 99% (93%) 5% to 99% (93%) Balance / Range (Average 1 ) $ in millions,except inputs At December 31, 2019 At December 31, 2018 Liabilities Measured at Fair Value on a Recurring Basis Deposits $ 179 $ 27 Option model: At the money 16% to 37% (20%) N/M Other secured $ 109 $ 208 Discounted cash flow: Funding spread 111 to 124 bps (117 bps) 103 to 193 bps (148 bps) Option model: Volatility skew N/M -1 % At the money N/M 10% to 40% (25%) Borrowings $ 4,088 $ 3,806 Option model: At the money 5% to 44% (21%) 5% to 35% (22%) Volatility skew -2% to 0% (0%) -2% to 0% (0%) Equity correlation 38% to 94% (78%) 45% to 98% (85%) Equity - FX -75% to 26% (-25%) -75% to 50% (-27%) IR Correlation N/M 58% to 97% (85% / 91%) IR FX Correlation -26% to 10% (-7% / -7%) 28% to 58% (44% / 44%) Nonrecurring Fair Value Measurement Loans $ 1,500 $ 1,380 Corporate loan model: Credit spread 69 to 446 bps (225 bps) 97 to 434 bps (181 bps) Warehouse model: Credit spread 287 to 318 bps (297 bps) 223 to 313 bps (247 bps) Points—Percentage of par IR—Interest rate FX—Foreign exchange 1. A single amount is disclosed for range and average when there is no significant difference between the minimum, maximum and average. Amounts represent weighted averages except where simple averages and the median of the inputs are more relevant. 2. Includes derivative contracts with multiple risks ( i.e. , hybrid products). Valuation Techniques for Assets and Liabilities Measured at Fair Value on a Recurring Basis Asset and Liability/Valuation Technique Valuation Hierarchy Classification U.S. Treasury and Agency Securities U.S. Treasury Securities • Level 1 • Fair value is determined using quoted market prices. U.S. Agency Securities • Level 1 - on-the-run agency issued debt securities if actively traded and inputs are observable • Generally Level 2 - all other agency issued debt securities, agency mortgage pass-through pool securities and CMOs if actively traded and inputs are observable • Level 3 - in instances where the trading activity is limited or inputs are unobservable • Non-callable agency-issued debt securities are generally valued using quoted market prices, and callable agency-issued debt securities are valued by benchmarking model-derived prices to quoted market prices and trade data for comparable instruments. • The fair value of agency mortgage pass-through pool securities is model-driven based on spreads of comparable to-be-announced securities. • CMOs are generally valued using quoted market prices and trade data adjusted by subsequent changes in related indices for comparable instruments. Other Sovereign Government Obligations • Generally Level 1 • Level 2 - if the market is less active or prices are dispersed • Level 3 - in instances where the prices are unobservable • Fair value is determined using quoted prices in active markets when available. When not available, quoted prices in less-active markets are used. In the absence of position-specific quoted prices, fair value may be determined through benchmarking from comparable instruments. State and Municipal Securities • Generally Level 2 - if value based on observable market data for comparable instruments • Level 3 in instances where market data is not observable • Fair value is determined using recently executed transactions, market price quotations or pricing models that factor in, where applicable, interest rates, bond or CDS spreads, adjusted for any basis difference between cash and derivative instruments. RMBS, CMBS, ABS (collectively known as Mortgage- and Asset-backed securities (“MABS”)) • Generally Level 2 - if value based on observable market data for comparable instruments • Level 3 - if external prices or significant spread inputs are unobservable, or if the comparability assessment involves significant subjectivity related to property type differences, cash flows, performance or other inputs • Mortgage- and asset-backed securities may be valued based on price or spread data obtained from observed transactions or independent external parties such as vendors or brokers. • When position-specific external price data are not observable, the fair value determination may require benchmarking to comparable instruments, and/or analyzing expected credit losses, default and recovery rates, and/or applying discounted cash flow techniques. When evaluating the comparable instruments for use in the valuation of each security, security collateral-specific attributes, including payment priority, credit enhancement levels, type of collateral, delinquency rates and loss severity, are considered. In addition, for RMBS borrowers, FICO scores and the level of documentation for the loan are considered. • Market standard cash flow models may be utilized to model the specific collateral composition and cash flow structure of each transaction. Key inputs to these models are market spreads, forecasted credit losses, and default and prepayment rates for each asset category. • Valuation levels of RMBS and CMBS indices are used as an additional data point for benchmarking purposes or to price outright index positions. Loans and Lending Commitments • Level 2 - if value based on observable market data for comparable instruments • Level 3 - in instances where prices or significant spread inputs are unobservable • Fair value of corporate loans is determined using recently executed transactions, market price quotations (where observable), implied yields from comparable debt, market observable CDS spread levels obtained from independent external parties adjusted for any basis difference between cash and derivative instruments, along with proprietary valuation models and default recovery analysis where such transactions and quotations are unobservable. • Fair value of contingent corporate lending commitments is determined by using executed transactions on comparable loans and the anticipated market price based on pricing indications from syndicate banks and customers. The valuation of loans and lending commitments also takes into account fee income that is considered an attribute of the contract. • Fair value of mortgage loans is determined using observable prices based on transactional data or third-party pricing for comparable instruments, when available. • Where position-specific external prices are not observable, fair value is estimated based on benchmarking to prices and rates observed in the primary market for similar loan or borrower types or based on the present value of expected future cash flows using the Firm’s best available estimates of the key assumptions, including forecasted credit losses, prepayment rates, forward yield curves and discount rates commensurate with the risks involved or a methodology that utilizes the capital structure and credit spreads of recent comparable securitization transactions. • Fair value of equity margin loans is determined by discounting future interest cash flows, net of estimated credit losses. The estimated credit losses are derived by benchmarking to market observable CDS spreads, implied debt yields or volatility metrics of the loan collateral. Corporate and Other Debt Corporate Bonds • Generally Level 2 - if value based on observable market data for comparable instruments • Level 3 - in instances where prices or significant spread inputs are unobservable • Fair value is determined using recently executed transactions, market price quotations, bond spreads and CDS spreads obtained from independent external parties, such as vendors and brokers, adjusted for any basis difference between cash and derivative instruments. • The spread data used are for the same maturity as the bond. If the spread data do not reference the issuer, then data that reference comparable issuers are used. When position-specific external price data are not observable, fair value is determined based on either benchmarking to comparable instruments or cash flow models with yield curves, bond or single-name CDS spreads and recovery rates as significant inputs. Asset and Liability/Valuation Technique Valuation Hierarchy Classification CDO • Level 2 - when either comparable market transactions are observable, or credit correlation input is insignificant • Level 3 - when either comparable market transactions are unobservable, or the credit correlation input is significant • The Firm holds cash CDOs that typically reference a tranche of an underlying synthetic portfolio of single-name CDS spreads collateralized by corporate bonds (CLN) or cash portfolio of ABS/loans (“asset-backed CDOs”). • Credit correlation, a primary input used to determine the fair value of CLNs, is usually unobservable and derived using a benchmarking technique. Other model inputs such as credit spreads, including collateral spreads, and interest rates are typically observable. • Asset-backed CDOs are valued based on an evaluation of the market and model input parameters sourced from comparable instruments as indicated by market activity. Each asset-backed CDO position is evaluated independently taking into consideration available comparable market levels, underlying collateral performance and pricing, deal structures and liquidity. Corporate Equities • Generally Level 1 - exchange-traded securities and fund units if actively traded • Level 2 - exchange-traded securities if not actively traded, or if undergoing a recent M&A event or corporate action • Level 3 - exchange-traded securities if not actively traded, or if undergoing an aged M&A event or corporate action • Exchange-traded equity securities are generally valued based on quoted prices from the exchange. To the extent these securities are actively traded, valuation adjustments are not applied. • Unlisted equity securities are generally valued based on an assessment of each security, considering rounds of financing and third-party transactions, discounted cash flow analyses and market-based information, including comparable transactions, trading multiples and changes in market outlook, among other factors. • Listed fund units are generally marked to the exchange-traded price if actively traded, or NAV if not. Unlisted fund units are generally marked to NAV. Derivative and Other Contracts Listed Derivative Contracts • Level 1 - listed derivatives that are actively traded • Level 2 - listed derivatives that are not actively traded • Listed derivatives that are actively traded are valued based on quoted prices from the exchange. • Listed derivatives that are not actively traded are valued using the same techniques as those applied to OTC derivatives as noted below. OTC Derivative Contracts • Generally Level 2 - OTC derivative products valued using observable inputs, or where the unobservable input is not deemed significant • Level 3 - OTC derivative products for which the unobservable input is deemed significant • OTC derivative contracts include forward, swap and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices or commodity prices. • Depending on the product and the terms of the transaction, the fair value of OTC derivative products can be modeled using a series of techniques, including closed-form analytic formulas, such as the Black-Scholes option-pricing model, simulation models or a combination thereof. Many pricing models do not entail material subjectivity as the methodologies employed do not necessitate significant judgment since model inputs may be observed from actively quoted markets, as is the case for generic interest rate swaps, many equity, commodity and foreign currency option contracts, and certain CDS. In the case of more established derivative products, the pricing models used by the Firm are widely accepted by the financial services industry. • More complex OTC derivative products are typically less liquid and require more judgment in the implementation of the valuation technique since direct trading activity or quotes are unobservable. This includes certain types of interest rate derivatives with both volatility and correlation exposure, equity, commodity or foreign currency derivatives that are either longer-dated or include exposure to multiple underlyings, and credit derivatives, including CDS on certain mortgage- or asset-backed securities and basket CDS. Where required inputs are unobservable, relationships to observable data points, based on historical and/or implied observations, may be employed as a technique to estimate the model input values. For further information on the valuation techniques for OTC derivative products, see Note 2. Investments • Level 1 - exchange-traded direct equity investments in an active market • Level 2 - non-exchange-traded direct equity investments and investments in various investment management funds if valued based on rounds of financing or third-party transactions; exchange-traded direct equity investments if not actively traded • Level 3 - non-exchange-traded direct equity investments and investments in various investment management funds where rounds of financing or third-party transactions are not available • Investments include direct investments in equity securities, as well as various investment management funds, which include investments made in connection with certain employee deferred compensation plans. • Exchange-traded direct equity investments are generally valued based on quoted prices from the exchange. • For direct investments, initially, the transaction price is generally considered by the Firm as the exit price and is its best estimate of fair value. • After initial recognition, in determining the fair value of non-exchange-traded internally and externally managed funds, the Firm generally considers the NAV of the fund provided by the fund manager to be the best estimate of fair value. These investments are included in the Fund Interests table in the "Net Asset Value Measurements" section herein. • For non-exchange-traded investments either held directly or held within internally managed funds, fair value after initial recognition is based on an assessment of each underlying investment, considering rounds of financing and third-party transactions, discounted cash flow analyses and market-based information, including comparable Firm transactions, trading multiples and changes in market outlook, among other factors. Physical Commodities • Level 2 • The Firm trades various physical commodities, including natural gas and precious metals. • Fair value is determined using observable inputs, including broker quotations and published indices. Asset and Liability/Valuation Technique Valuation Hierarchy Classification Investment Securities—AFS Securities • For further information on the determination of valuation hierarchy classification, see the corresponding Valuation Hierarchy Classification described herein. • AFS securities are composed of U.S. government and agency securities ( e.g., U.S. Treasury securities, agency-issued debt, agency mortgage pass-through securities and CMOs), CMBS, ABS, state and municipal securities, and corporate bonds. For further information on the determination of fair value, refer to the corresponding asset/liability Valuation Technique described herein for the same instruments. Deposits • Generally Level 2 • Level 3 - in instances where the unobservable input is deemed significant Certificates of Deposit • The Firm issues FDIC-insured certificates of deposit that pay either fixed coupons or that have repayment terms linked to the performance of debt or equity securities, indices or currencies. The fair value of these certificates of deposit is determined using valuation models that incorporate observable inputs referencing identical or comparable securities, including prices to which the deposits are linked, interest rate yield curves, option volatility and currency rates, equity prices, and the impact of the Firm’s own credit spreads, adjusted for the impact of the FDIC insurance, which is based on vanilla deposit issuance rates. Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase • Generally Level 2 • Fair value is computed using a standard cash flow discounting methodology. • The inputs to the valuation include contractual cash flows and collateral funding spreads, which are the incremental spread over the OIS rate for a specific collateral rate (which refers to the rate applicable to a specific type of security pledged as collateral). Other Secured Financings • For further information on the determination of valuation hierarchy classification, see the corresponding Valuation Hierarchy Classification described herein. • Other secured financings are composed of short-dated notes secured by Corporate equities, agreements to repurchase Physical commodities, the liabilities related to sales of Loans and lending commitments accounted for as financings, and contracts which are not classified as OTC derivatives because they fail net investment criteria. For further information on the determination of valuation hierarchy classification, see the corresponding Valuation Hierarchy Classification described herein. Borrowings • Generally Level 2 • Level 3 - in instances where the unobservable inputs are deemed significant • The Firm carries certain borrowings at fair value which are primarily composed of: instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures; and instruments with various interest-rate-related features including step-ups, step-downs, and zero coupons. • Fair value is determined using valuation models for the derivative and debt portions of the instruments. These models incorporate observable inputs referencing identical or comparable securities, including prices to which the instruments are linked, interest rate yield curves, option volatility and currency rates, and commodity or equity prices. • Independent, external and traded prices are considered as well as the impact of the Firm’s own credit spreads which are based on observed secondary bond market spreads. |
Schedule of Rollforward of Level 3 Assets Measured at Fair Value on a Recurring Basis | Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis $ in millions 2019 2018 2017 U.S. Treasury and agency securities Beginning balance $ 54 $ — $ 74 Realized and unrealized gains (losses) 4 1 (1 ) Purchases 17 53 — Sales (54 ) — (240 ) Net transfers 1 — 167 Ending balance $ 22 $ 54 $ — Unrealized gains (losses) $ 4 $ 1 $ — Other sovereign government obligations Beginning balance $ 17 $ 1 $ 6 Realized and unrealized gains (losses) (3 ) — — Purchases 7 41 — Sales (6 ) (26 ) (5 ) Net transfers (10 ) 1 — Ending balance $ 5 $ 17 $ 1 Unrealized gains (losses) $ (3 ) $ — $ — State and municipal securities Beginning balance $ 148 $ 8 $ 250 Realized and unrealized gains (losses) — — 3 Purchases — 147 6 Sales (147 ) (9 ) (83 ) Net transfers — 2 (168 ) Ending balance $ 1 $ 148 $ 8 Unrealized gains (losses) $ — $ — $ — MABS Beginning balance $ 354 $ 423 $ 217 Realized and unrealized gains (losses) (16 ) 82 47 Purchases 132 177 289 Sales (175 ) (338 ) (158 ) Settlements (44 ) (17 ) (37 ) Net transfers 187 27 65 Ending balance $ 438 $ 354 $ 423 Unrealized gains (losses) $ (57 ) $ (9 ) $ (7 ) Loans and lending commitments Beginning balance $ 6,870 $ 5,945 $ 5,122 Realized and unrealized gains (losses) 38 (100 ) 182 Purchases 2,337 5,746 3,616 Sales (1,268 ) (2,529 ) (1,561 ) Settlements (2,291 ) (2,281 ) (1,463 ) Net transfers (613 ) 89 49 Ending balance $ 5,073 $ 6,870 $ 5,945 Unrealized gains (losses) $ (9 ) $ (137 ) $ 131 Corporate and other debt Beginning balance $ 1,076 $ 701 $ 475 Realized and unrealized gains (losses) 418 106 82 Purchases 650 734 487 Sales (729 ) (251 ) (420 ) Settlements (7 ) (11 ) (9 ) Net transfers (12 ) (203 ) 86 Ending balance $ 1,396 $ 1,076 $ 701 Unrealized gains (losses) $ 361 $ 70 $ 23 $ in millions 2019 2018 2017 Corporate equities Beginning balance $ 95 $ 166 $ 446 Realized and unrealized gains (losses) (8 ) 29 (54 ) Purchases 32 13 173 Sales (271 ) (161 ) (632 ) Net transfers 249 48 233 Ending balance $ 97 $ 95 $ 166 Unrealized gains (losses) $ 1 $ 17 $ (6 ) Investments Beginning balance $ 757 $ 1,020 $ 958 Realized and unrealized gains (losses) 78 (25 ) 96 Purchases 40 149 102 Sales (41 ) (212 ) (57 ) Settlements — — (78 ) Net transfers 24 (175 ) (1 ) Ending balance $ 858 $ 757 $ 1,020 Unrealized gains (losses) $ 67 $ (27 ) $ 88 Net derivatives: Interest rate Beginning balance $ 618 $ 1,218 $ 420 Realized and unrealized gains (losses) 17 111 322 Purchases 98 63 29 Issuances (16 ) (19 ) (18 ) Settlements 1 (172 ) 608 Net transfers 59 (583 ) (143 ) Ending balance $ 777 $ 618 $ 1,218 Unrealized gains (losses) $ 87 $ 140 $ 341 Net derivatives: Credit Beginning balance $ 40 $ 41 $ (373 ) Realized and unrealized gains (losses) (24 ) 33 (43 ) Purchases 144 13 — Issuances (190 ) (95 ) (1 ) Settlements 111 56 455 Net transfers 43 (8 ) 3 Ending balance $ 124 $ 40 $ 41 Unrealized gains (losses) $ (17 ) $ 23 $ (18 ) Net derivatives: Foreign exchange Beginning balance $ 75 $ (112 ) $ (43 ) Realized and unrealized gains (losses) (295 ) 179 (108 ) Purchases 2 3 — Issuances — (1 ) (1 ) Settlements 7 2 31 Net transfers 180 4 9 Ending balance $ (31 ) $ 75 $ (112 ) Unrealized gains (losses) $ (187 ) $ 118 $ (89 ) Net derivatives: Equity Beginning balance $ (1,485 ) $ 1,208 $ 184 Realized and unrealized gains (losses) (260 ) 305 136 Purchases 155 122 988 Issuances (643 ) (1,179 ) (524 ) Settlements 242 314 396 Net transfers 1 307 (2,255 ) 28 Ending balance $ (1,684 ) $ (1,485 ) $ 1,208 Unrealized gains (losses) $ (194 ) $ 211 $ 159 $ in millions 2019 2018 2017 Net derivatives: Commodity and other Beginning balance $ 2,052 $ 1,446 $ 1,600 Realized and unrealized gains (losses) 73 500 515 Purchases 152 34 24 Issuances (92 ) (18 ) (57 ) Settlements (611 ) (81 ) (343 ) Net transfers 38 171 (293 ) Ending balance $ 1,612 $ 2,052 $ 1,446 Unrealized gains (losses) $ (113 ) $ 272 $ 20 Deposits Beginning balance $ 27 $ 47 $ 42 Realized and unrealized losses (gains) 20 (1 ) 3 Issuances 101 9 12 Settlements (15 ) (2 ) (3 ) Net transfers 46 (26 ) (7 ) Ending balance $ 179 $ 27 $ 47 Unrealized losses (gains) $ 20 $ (1 ) $ 3 Nonderivative trading liabilities Beginning balance $ 16 $ 25 $ 71 Realized and unrealized losses (gains) (21 ) (6 ) (1 ) Purchases (65 ) (18 ) (139 ) Sales 38 9 20 Net transfers 69 6 74 Ending balance $ 37 $ 16 $ 25 Unrealized losses (gains) $ (21 ) $ (7 ) $ — Securities sold under agreements to repurchase Beginning balance $ — $ 150 $ 149 Issuances — — 1 Net transfers — (150 ) — Ending balance $ — $ — $ 150 Unrealized losses (gains) $ — $ — $ — Other secured financings Beginning balance $ 208 $ 239 $ 434 Realized and unrealized losses (gains) 5 (39 ) 35 Issuances — 8 64 Settlements (8 ) (17 ) (251 ) Net transfers (96 ) 17 (43 ) Ending balance $ 109 $ 208 $ 239 Unrealized losses (gains) $ 5 $ (39 ) $ 28 Borrowings Beginning balance $ 3,806 $ 2,984 $ 2,014 Realized and unrealized losses (gains) 728 (385 ) 196 Issuances 1,181 1,554 1,968 Settlements (950 ) (274 ) (424 ) Net transfers (677 ) (73 ) (770 ) Ending balance $ 4,088 $ 3,806 $ 2,984 Unrealized losses (gains) $ 600 $ (379 ) $ 173 Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA 182 (184 ) 76 1. During 2018, the Firm transferred from Level 3 to Level 2 $2.4 billion of Equity Derivatives due to a reduction in the significance of the unobservable inputs relating to volatility. |
Schedule of Rollforward of Level 3 Liabilities Measured at Fair Value on a Recurring Basis | Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis $ in millions 2019 2018 2017 U.S. Treasury and agency securities Beginning balance $ 54 $ — $ 74 Realized and unrealized gains (losses) 4 1 (1 ) Purchases 17 53 — Sales (54 ) — (240 ) Net transfers 1 — 167 Ending balance $ 22 $ 54 $ — Unrealized gains (losses) $ 4 $ 1 $ — Other sovereign government obligations Beginning balance $ 17 $ 1 $ 6 Realized and unrealized gains (losses) (3 ) — — Purchases 7 41 — Sales (6 ) (26 ) (5 ) Net transfers (10 ) 1 — Ending balance $ 5 $ 17 $ 1 Unrealized gains (losses) $ (3 ) $ — $ — State and municipal securities Beginning balance $ 148 $ 8 $ 250 Realized and unrealized gains (losses) — — 3 Purchases — 147 6 Sales (147 ) (9 ) (83 ) Net transfers — 2 (168 ) Ending balance $ 1 $ 148 $ 8 Unrealized gains (losses) $ — $ — $ — MABS Beginning balance $ 354 $ 423 $ 217 Realized and unrealized gains (losses) (16 ) 82 47 Purchases 132 177 289 Sales (175 ) (338 ) (158 ) Settlements (44 ) (17 ) (37 ) Net transfers 187 27 65 Ending balance $ 438 $ 354 $ 423 Unrealized gains (losses) $ (57 ) $ (9 ) $ (7 ) Loans and lending commitments Beginning balance $ 6,870 $ 5,945 $ 5,122 Realized and unrealized gains (losses) 38 (100 ) 182 Purchases 2,337 5,746 3,616 Sales (1,268 ) (2,529 ) (1,561 ) Settlements (2,291 ) (2,281 ) (1,463 ) Net transfers (613 ) 89 49 Ending balance $ 5,073 $ 6,870 $ 5,945 Unrealized gains (losses) $ (9 ) $ (137 ) $ 131 Corporate and other debt Beginning balance $ 1,076 $ 701 $ 475 Realized and unrealized gains (losses) 418 106 82 Purchases 650 734 487 Sales (729 ) (251 ) (420 ) Settlements (7 ) (11 ) (9 ) Net transfers (12 ) (203 ) 86 Ending balance $ 1,396 $ 1,076 $ 701 Unrealized gains (losses) $ 361 $ 70 $ 23 $ in millions 2019 2018 2017 Corporate equities Beginning balance $ 95 $ 166 $ 446 Realized and unrealized gains (losses) (8 ) 29 (54 ) Purchases 32 13 173 Sales (271 ) (161 ) (632 ) Net transfers 249 48 233 Ending balance $ 97 $ 95 $ 166 Unrealized gains (losses) $ 1 $ 17 $ (6 ) Investments Beginning balance $ 757 $ 1,020 $ 958 Realized and unrealized gains (losses) 78 (25 ) 96 Purchases 40 149 102 Sales (41 ) (212 ) (57 ) Settlements — — (78 ) Net transfers 24 (175 ) (1 ) Ending balance $ 858 $ 757 $ 1,020 Unrealized gains (losses) $ 67 $ (27 ) $ 88 Net derivatives: Interest rate Beginning balance $ 618 $ 1,218 $ 420 Realized and unrealized gains (losses) 17 111 322 Purchases 98 63 29 Issuances (16 ) (19 ) (18 ) Settlements 1 (172 ) 608 Net transfers 59 (583 ) (143 ) Ending balance $ 777 $ 618 $ 1,218 Unrealized gains (losses) $ 87 $ 140 $ 341 Net derivatives: Credit Beginning balance $ 40 $ 41 $ (373 ) Realized and unrealized gains (losses) (24 ) 33 (43 ) Purchases 144 13 — Issuances (190 ) (95 ) (1 ) Settlements 111 56 455 Net transfers 43 (8 ) 3 Ending balance $ 124 $ 40 $ 41 Unrealized gains (losses) $ (17 ) $ 23 $ (18 ) Net derivatives: Foreign exchange Beginning balance $ 75 $ (112 ) $ (43 ) Realized and unrealized gains (losses) (295 ) 179 (108 ) Purchases 2 3 — Issuances — (1 ) (1 ) Settlements 7 2 31 Net transfers 180 4 9 Ending balance $ (31 ) $ 75 $ (112 ) Unrealized gains (losses) $ (187 ) $ 118 $ (89 ) Net derivatives: Equity Beginning balance $ (1,485 ) $ 1,208 $ 184 Realized and unrealized gains (losses) (260 ) 305 136 Purchases 155 122 988 Issuances (643 ) (1,179 ) (524 ) Settlements 242 314 396 Net transfers 1 307 (2,255 ) 28 Ending balance $ (1,684 ) $ (1,485 ) $ 1,208 Unrealized gains (losses) $ (194 ) $ 211 $ 159 $ in millions 2019 2018 2017 Net derivatives: Commodity and other Beginning balance $ 2,052 $ 1,446 $ 1,600 Realized and unrealized gains (losses) 73 500 515 Purchases 152 34 24 Issuances (92 ) (18 ) (57 ) Settlements (611 ) (81 ) (343 ) Net transfers 38 171 (293 ) Ending balance $ 1,612 $ 2,052 $ 1,446 Unrealized gains (losses) $ (113 ) $ 272 $ 20 Deposits Beginning balance $ 27 $ 47 $ 42 Realized and unrealized losses (gains) 20 (1 ) 3 Issuances 101 9 12 Settlements (15 ) (2 ) (3 ) Net transfers 46 (26 ) (7 ) Ending balance $ 179 $ 27 $ 47 Unrealized losses (gains) $ 20 $ (1 ) $ 3 Nonderivative trading liabilities Beginning balance $ 16 $ 25 $ 71 Realized and unrealized losses (gains) (21 ) (6 ) (1 ) Purchases (65 ) (18 ) (139 ) Sales 38 9 20 Net transfers 69 6 74 Ending balance $ 37 $ 16 $ 25 Unrealized losses (gains) $ (21 ) $ (7 ) $ — Securities sold under agreements to repurchase Beginning balance $ — $ 150 $ 149 Issuances — — 1 Net transfers — (150 ) — Ending balance $ — $ — $ 150 Unrealized losses (gains) $ — $ — $ — Other secured financings Beginning balance $ 208 $ 239 $ 434 Realized and unrealized losses (gains) 5 (39 ) 35 Issuances — 8 64 Settlements (8 ) (17 ) (251 ) Net transfers (96 ) 17 (43 ) Ending balance $ 109 $ 208 $ 239 Unrealized losses (gains) $ 5 $ (39 ) $ 28 Borrowings Beginning balance $ 3,806 $ 2,984 $ 2,014 Realized and unrealized losses (gains) 728 (385 ) 196 Issuances 1,181 1,554 1,968 Settlements (950 ) (274 ) (424 ) Net transfers (677 ) (73 ) (770 ) Ending balance $ 4,088 $ 3,806 $ 2,984 Unrealized losses (gains) $ 600 $ (379 ) $ 173 Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA 182 (184 ) 76 1. During 2018, the Firm transferred from Level 3 to Level 2 $2.4 billion of Equity Derivatives due to a reduction in the significance of the unobservable inputs relating to volatility. |
Schedule of Net Asset Value Measurements | Fund Interests At December 31, 2019 At December 31, 2018 $ in millions Carrying Commitment Carrying Commitment Private equity $ 2,078 $ 450 $ 1,374 $ 316 Real estate 1,349 150 1,105 161 Hedge 1 94 4 103 4 Total $ 3,521 $ 604 $ 2,582 $ 481 1. Investments in hedge funds may be subject to initial period lock-up or gate provisions, which restrict an investor from withdrawing from the fund during a certain initial period or restrict the redemption amount on any redemption date, respectively. Nonredeemable Funds by Contractual Maturity Carrying Value at December 31, 2019 $ in millions Private Equity Real Estate Less than 5 years $ 1,205 $ 1,041 5-10 years 842 202 Over 10 years 31 106 Total $ 2,078 $ 1,349 |
Schedule of Nonrecurring Fair Value Measurements | Carrying and Fair Values At December 31, 2019 $ in millions Level 2 Level 3 1 Total Assets Loans $ 1,543 $ 1,500 $ 3,043 Other assets—Other investments — 113 113 Total $ 1,543 $ 1,613 $ 3,156 Liabilities Other liabilities and accrued expenses—Lending commitments $ 132 $ 69 $ 201 Total $ 132 $ 69 $ 201 At December 31, 2018 $ in millions Level 2 Level 3 1 Total Assets Loans $ 2,307 $ 1,380 $ 3,687 Other assets—Other investments 14 100 114 Total $ 2,321 $ 1,480 $ 3,801 Liabilities Other liabilities and accrued expenses—Lending commitments $ 292 $ 65 $ 357 Total $ 292 $ 65 $ 357 1. For significant Level 3 balances, refer to “Significant Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements” section herein for details of the significant unobservable inputs used for nonrecurring fair value measurement. Gains (Losses) from Fair Value Remeasurements 1 $ in millions 2019 2018 2017 Assets Loans 2 $ 18 $ (68 ) $ 18 Other assets—Other investments 3 (56 ) (56 ) (66 ) Other assets—Premises, equipment and software 4 (22 ) (46 ) (25 ) Total $ (60 ) $ (170 ) $ (73 ) Liabilities Other liabilities and accrued expenses—Lending commitments 2 $ 87 $ (48 ) $ 75 Total $ 87 $ (48 ) $ 75 1. Gains and losses for Loans and Other assets—Other investments are classified in Other revenues. For other items, gains and losses are recorded in Other revenues if the item is held for sale; otherwise, they are recorded in Other expenses. 2. Nonrecurring changes in the fair value of loans and lending commitments were calculated as follows: for the held-for-investment category, based on the value of the underlying collateral; and for the held-for-sale category, based on recently executed transactions, market price quotations, valuation models that incorporate market observable inputs where possible, such as comparable loan or debt prices and CDS spread levels adjusted for any basis difference between cash and derivative instruments, or default recovery analysis where such transactions and quotations are unobservable. 3. Losses related to Other assets—Other investments were determined using techniques that included discounted cash flow models, methodologies that incorporate multiples of certain comparable companies and recently executed transactions. 4. Losses related to Other assets—Premises, equipment and software generally include write-offs related to the disposal of certain assets. |
Schedule of Financial Instruments Not Measured at Fair Value | Financial Instruments Not Measured at Fair Value At December 31, 2019 Carrying Value Fair Value $ in millions Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents: Cash and due from banks $ 4,293 $ 4,293 $ — $ — $ 4,293 Interest bearing deposits with banks 45,366 45,366 — — 45,366 Restricted cash 32,512 32,512 — — 32,512 Investment securities—HTM 43,502 30,661 12,683 789 44,133 Securities purchased under agreements to resell 88,220 — 86,794 1,442 88,236 Securities borrowed 106,549 — 106,551 — 106,551 Customer and other receivables 1 51,134 — 48,215 2,872 51,087 Loans 2 130,637 — 22,293 108,059 130,352 Other assets 495 — 495 — 495 Financial liabilities Deposits $ 188,257 $ — $ 188,639 $ — $ 188,639 Securities sold under agreements to repurchase 53,467 — 53,486 — 53,486 Securities loaned 8,506 — 8,506 — 8,506 Other secured financings 6,889 — 6,800 92 6,892 Customer and other payables 1 195,035 — 195,035 — 195,035 Borrowings 128,166 — 133,563 10 133,573 Commitment Lending commitments 3 $ 119,004 $ — $ 748 $ 338 $ 1,086 At December 31, 2018 Carrying Value Fair Value $ in millions Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents: Cash and due from banks $ 30,541 $ 30,541 $ — $ — $ 30,541 Interest bearing deposits with banks 21,299 21,299 — — 21,299 Restricted cash 35,356 35,356 — — 35,356 Investment securities—HTM 30,771 17,473 12,018 474 29,965 Securities purchased under agreements to resell 98,522 — 97,611 866 98,477 Securities borrowed 116,313 — 116,312 — 116,312 Customer and other receivables 1 47,972 — 44,620 3,219 47,839 Loans 2 115,579 — 25,604 90,121 115,725 Other assets 461 — 461 — 461 Financial liabilities Deposits $ 187,378 $ — $ 187,372 $ — $ 187,372 Securities sold under agreements to repurchase 48,947 — 48,385 525 48,910 Securities loaned 11,908 — 11,906 — 11,906 Other secured financings 4,221 — 3,233 994 4,227 Customer and other payables 1 176,561 — 176,561 — 176,561 Borrowings 138,478 — 140,085 30 140,115 Commitment Lending commitments 3 $ 104,844 $ — $ 1,249 $ 321 $ 1,570 1. Accrued interest and dividend receivables and payables have been excluded. Carrying value approximates fair value for these receivables and payables. 2. Amounts include loans measured at fair value on a nonrecurring basis. 3. Represents Lending commitments accounted for as Held for Investment and Held for Sale. For a further discussion on lending commitments, see Note 13 . |
Fair Value Option (Tables)
Fair Value Option (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Option | Borrowings Measured at Fair Value on a Recurring Basis $ in millions At At Business Unit Responsible for Risk Management Equity $ 30,214 $ 24,494 Interest rates 27,298 22,343 Commodities 4,501 2,735 Credit 1,246 856 Foreign exchange 1,202 756 Total $ 64,461 $ 51,184 Net Revenues from Borrowings under the Fair Value Option $ in millions 2019 2018 2017 Trading revenues $ (6,932 ) $ 2,679 $ (4,507 ) Interest expense 375 321 443 Net revenues 1 $ (7,307 ) $ 2,358 $ (4,950 ) 1. Amounts do not reflect any gains or losses from related economic hedges. Fair Value Loans on Nonaccrual Status $ in millions At At Nonaccrual loans $ 1,100 $ 1,497 Nonaccrual loans 90 or more days past due $ 330 $ 812 Difference between Contractual Principal and Fair Value 1 $ in millions At At Loans and other debt 2 $ 13,037 $ 13,094 Nonaccrual loans 2 10,849 10,831 Borrowings 3 (1,665 ) 2,657 1. Amounts indicate contractual principal greater than or (less than) fair value. 2. The majority of the difference between principal and fair value amounts for loans and other debt relates to distressed debt positions purchased at amounts well below par. 3. Excludes borrowings where the repayment of the initial principal amount fluctuates based on changes in a reference price or index. Gains (Losses) Due to Changes in Instrument-Specific Credit Risk $ in millions Trading Revenues OCI 2019 Borrowings $ (11 ) $ (2,140 ) Loans and other debt 1 223 — Lending commitments (2 ) — Other — (30 ) 2018 Borrowings $ (24 ) $ 1,962 Loans and other debt 1 165 — Lending commitments (3 ) — Other (32 ) 41 2017 Borrowings $ (12 ) $ (903 ) Loans and other debt 1 159 — Lending commitments (2 ) — Other — (7 ) $ in millions At At Cumulative pre-tax DVA gain (loss) recognized in AOCI $ (1,998 ) $ 172 1. Loans and other debt instrument-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Asset Contracts | Derivative Fair Values At December 31, 2019 Assets $ in millions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 673 $ — $ — $ 673 Foreign exchange 41 1 — 42 Total 714 1 — 715 Not designated as accounting hedges Interest rate 179,450 4,839 519 184,808 Credit 4,895 2,417 — 7,312 Foreign exchange 62,957 1,399 22 64,378 Equity 27,621 — 23,447 51,068 Commodity and other 9,306 — 1,952 11,258 Total 284,229 8,655 25,940 318,824 Total gross derivatives $ 284,943 $ 8,656 $ 25,940 $ 319,539 Amounts offset Counterparty netting (213,710 ) (7,294 ) (24,037 ) (245,041 ) Cash collateral netting (41,222 ) (1,275 ) — (42,497 ) Total in Trading assets $ 30,011 $ 87 $ 1,903 $ 32,001 Amounts not offset 1 Financial instruments collateral (15,596 ) — — (15,596 ) Other cash collateral (46 ) — — (46 ) Net amounts $ 14,369 $ 87 $ 1,903 $ 16,359 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 1,900 At December 31, 2018 Assets $ in millions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 512 $ 1 $ — $ 513 Foreign exchange 27 8 — 35 Total 539 9 — 548 Not designated as accounting hedges Interest rate 153,768 3,887 697 158,352 Credit 4,630 1,498 — 6,128 Foreign exchange 61,846 1,310 55 63,211 Equity 24,590 — 23,284 47,874 Commodity and other 10,538 — 1,934 12,472 Total 255,372 6,695 25,970 288,037 Total gross derivatives $ 255,911 $ 6,704 $ 25,970 $ 288,585 Amounts offset Counterparty netting (190,220 ) (5,260 ) (24,548 ) (220,028 ) Cash collateral netting (38,204 ) (1,180 ) — (39,384 ) Total in Trading assets $ 27,487 $ 264 $ 1,422 $ 29,173 Amounts not offset 1 Financial instruments collateral (12,467 ) — — (12,467 ) Other cash collateral (31 ) — — (31 ) Net amounts $ 14,989 $ 264 $ 1,422 $ 16,675 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 2,206 |
Schedule of Fair Values of Derivative Liability Contracts | Liabilities $ in millions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 1 $ — $ — $ 1 Foreign exchange 121 38 — 159 Total 122 38 — 160 Not designated as accounting hedges Interest rate 168,597 3,597 436 172,630 Credit 4,798 3,123 — 7,921 Foreign exchange 65,965 1,492 39 67,496 Equity 30,135 — 22,733 52,868 Commodity and other 7,713 — 1,911 9,624 Total 277,208 8,212 25,119 310,539 Total gross derivatives $ 277,330 $ 8,250 $ 25,119 $ 310,699 Amounts offset Counterparty netting (213,710 ) (7,294 ) (24,037 ) (245,041 ) Cash collateral netting (36,392 ) (832 ) — (37,224 ) Total in Trading liabilities $ 27,228 $ 124 $ 1,082 $ 28,434 Amounts not offset 1 Financial instruments collateral (7,747 ) — (287 ) (8,034 ) Other cash collateral (14 ) — — (14 ) Net amounts $ 19,467 $ 124 $ 795 $ 20,386 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 3,680 Liabilities $ in millions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 176 $ — $ — $ 176 Foreign exchange 62 24 — 86 Total 238 24 — 262 Not designated as accounting hedges Interest rate 142,592 2,669 663 145,924 Credit 4,545 1,608 — 6,153 Foreign exchange 62,099 1,302 19 63,420 Equity 27,119 — 23,521 50,640 Commodity and other 6,983 — 2,057 9,040 Total 243,338 5,579 26,260 275,177 Total gross derivatives $ 243,576 $ 5,603 $ 26,260 $ 275,439 Amounts offset Counterparty netting (190,220 ) (5,260 ) (24,548 ) (220,028 ) Cash collateral netting (27,860 ) (293 ) — (28,153 ) Total in Trading liabilities $ 25,496 $ 50 $ 1,712 $ 27,258 Amounts not offset 1 Financial instruments collateral (4,709 ) — (766 ) (5,475 ) Other cash collateral (53 ) (1 ) — (54 ) Net amounts $ 20,734 $ 49 $ 946 $ 21,729 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 4,773 1. Amounts relate to master netting agreements and collateral agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. |
Schedule of Notionals of Derivative Contracts | Derivative Notionals At December 31, 2019 Assets $ in billions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 14 $ 94 $ — $ 108 Foreign exchange 2 — — 2 Total 16 94 — 110 Not designated as accounting hedges Interest rate 4,230 7,398 732 12,360 Credit 136 79 — 215 Foreign exchange 2,667 91 10 2,768 Equity 429 — 419 848 Commodity and other 99 — 61 160 Total 7,561 7,568 1,222 16,351 Total gross derivatives $ 7,577 $ 7,662 $ 1,222 $ 16,461 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ — $ 71 $ — $ 71 Foreign exchange 9 2 — 11 Total 9 73 — 82 Not designated as accounting hedges Interest rate 4,185 6,866 666 11,717 Credit 153 84 — 237 Foreign exchange 2,841 91 14 2,946 Equity 455 — 515 970 Commodity and other 85 — 61 146 Total 7,719 7,041 1,256 16,016 Total gross derivatives $ 7,728 $ 7,114 $ 1,256 $ 16,098 At December 31, 2018 Assets $ in billions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 15 $ 52 $ — $ 67 Foreign exchange 5 1 — 6 Total 20 53 — 73 Not designated as accounting hedges Interest rate 4,807 6,708 1,157 12,672 Credit 162 74 — 236 Foreign exchange 2,436 118 14 2,568 Equity 373 — 371 744 Commodity and other 97 — 67 164 Total 7,875 6,900 1,609 16,384 Total gross derivatives $ 7,895 $ 6,953 $ 1,609 $ 16,457 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 2 $ 107 $ — $ 109 Foreign exchange 5 1 — 6 Total 7 108 — 115 Not designated as accounting hedges Interest rate 4,946 5,735 781 11,462 Credit 162 73 — 235 Foreign exchange 2,451 114 17 2,582 Equity 389 — 602 991 Commodity and other 72 — 65 137 Total 8,020 5,922 1,465 15,407 Total gross derivatives $ 8,027 $ 6,030 $ 1,465 $ 15,522 |
Schedule of Gains (Losses) on Accounting Hedges | Gains (Losses) on Accounting Hedges $ in millions 2019 2018 2017 Fair value hedges—Recognized in Interest income 1 Interest rate contracts $ (10 ) $ (4 ) $ — Investment Securities—AFS 10 4 — Fair value hedges—Recognized in Interest expense Interest rate contracts $ 4,212 $ (1,529 ) $ (1,591 ) Deposits 2 7 — — Borrowings (4,288 ) 1,511 1,393 Net investment hedges—Foreign exchange contracts Recognized in OCI $ 14 $ 295 $ (365 ) Forward points excluded from hedge effectiveness testing—Recognized in Interest income 136 68 (20 ) |
Schedule of Fair Value Hedges - Hedged Items | Fair Value Hedges—Hedged Items $ in millions At At Investment securities—AFS 1 Carrying amount 3 currently or previously hedged $ 917 $ 201 Basis adjustments included in carrying amount 4 $ 14 $ 4 Deposits 2 Carrying amount 3 currently or previously hedged $ 5,435 $ — Basis adjustments included in carrying amount 4 $ (7 ) $ — Borrowings Carrying amount 3 currently or previously hedged $ 102,456 $ 102,899 Basis adjustments included in carrying amount 4 $ 2,593 $ (1,689 ) 1. The Firm began designating interest rate swaps as fair value hedges of certain AFS securities in the third quarter of 2018. 2. The Firm began designating interest rate swaps as fair value hedges of certain Deposits in the fourth quarter of 2019. 3. Carrying amount represents amortized cost basis. 4. Hedge accounting basis adjustments for AFS securities, Deposits and Borrowings are primarily related to outstanding hedges. |
Schedule of Derivatives with Credit Risk-Related Contingencies | Incremental Collateral and Termination Payments upon Potential Future Ratings Downgrade $ in millions At One-notch downgrade $ 254 Two-notch downgrade 328 Bilateral downgrade agreements included in the amounts above 1 $ 498 1. Amount represents arrangements between the Firm and other parties where upon the downgrade of one party, the downgraded party must deliver collateral to the other party. These bilateral downgrade arrangements are used by the Firm to manage the risk of counterparty downgrades. Net Derivative Liabilities and Collateral Posted $ in millions At At Net derivative liabilities with credit risk- related contingent features $ 21,620 $ 16,403 Collateral posted 17,392 11,981 |
Schedule of Credit Derivatives and Other Credit Contracts | Maximum Potential Payout/Notional of Credit Protection Sold 1 Years to Maturity at December 31, 2019 $ in billions < 1 1-3 3-5 Over 5 Total Single-name CDS Investment grade $ 16 $ 17 $ 33 $ 9 $ 75 Non-investment grade 9 9 16 1 35 Total $ 25 $ 26 $ 49 $ 10 $ 110 Index and basket CDS Investment grade $ 4 $ 7 $ 46 $ 11 $ 68 Non-investment grade 7 4 17 10 38 Total $ 11 $ 11 $ 63 $ 21 $ 106 Total CDS sold $ 36 $ 37 $ 112 $ 31 $ 216 Other credit contracts — — — — — Total credit protection sold $ 36 $ 37 $ 112 $ 31 $ 216 CDS protection sold with identical protection purchased $ 187 Years to Maturity at December 31, 2018 $ in billions < 1 1-3 3-5 Over 5 Total Single-name CDS Investment grade $ 22 $ 24 $ 19 $ 8 $ 73 Non-investment grade 10 11 9 1 31 Total $ 32 $ 35 $ 28 $ 9 $ 104 Index and basket CDS Investment grade $ 5 $ 10 $ 61 $ 7 $ 83 Non-investment grade 5 6 13 13 37 Total $ 10 $ 16 $ 74 $ 20 $ 120 Total CDS sold $ 42 $ 51 $ 102 $ 29 $ 224 Other credit contracts — — — — — Total credit protection sold $ 42 $ 51 $ 102 $ 29 $ 224 CDS protection sold with identical protection purchased $ 210 Fair Value Asset (Liability) of Credit Protection Sold 1 $ in millions At At Single-name CDS Investment grade $ 1,057 $ 118 Non-investment grade (540 ) (403 ) Total $ 517 $ (285 ) Index and basket CDS Investment grade $ 1,052 $ 314 Non-investment grade 134 (1,413 ) Total $ 1,186 $ (1,099 ) Total CDS sold $ 1,703 $ (1,384 ) Other credit contracts (17 ) (14 ) Total credit protection sold $ 1,686 $ (1,398 ) 1. Investment grade/non-investment grade determination is based on the internal credit rating of the reference obligation. Internal credit ratings serve as the Credit Risk Management Department’s assessment of credit risk and the basis for a comprehensive credit limits framework used to control credit risk. The Firm uses quantitative models and judgment to estimate the various risk parameters related to each obligor. Protection Purchased with CDS Notional $ in billions At At Single name $ 118 $ 116 Index and basket 103 117 Tranched index and basket 15 14 Total $ 236 $ 247 Fair Value Asset (Liability) $ in millions At At Single name $ (723 ) $ 277 Index and basket (1,139 ) 1,333 Tranched index and basket (450 ) (251 ) Total $ (2,312 ) $ 1,359 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of AFS and HTM Securities | AFS and HTM Securities At December 31, 2019 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS securities U.S. government and agency securities: U.S. Treasury securities $ 32,465 $ 224 $ 111 $ 32,578 U.S. agency securities 1 20,725 249 100 20,874 Total U.S. government and agency securities 53,190 473 211 53,452 Corporate and other debt: Agency CMBS 4,810 55 57 4,808 Corporate bonds 1,891 17 1 1,907 State and municipal securities 481 22 — 503 FFELP student loan ABS 2 1,580 1 28 1,553 Total corporate and other debt 8,762 95 86 8,771 Total AFS securities 61,952 568 297 62,223 HTM securities U.S. government and agency securities: U.S. Treasury securities 30,145 568 52 30,661 U.S. agency securities 1 12,589 151 57 12,683 Total U.S. government and agency securities 42,734 719 109 43,344 Corporate and other debt: Non-agency CMBS 768 22 1 789 Total HTM securities 43,502 741 110 44,133 Total investment securities $ 105,454 $ 1,309 $ 407 $ 106,356 At December 31, 2018 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS securities U.S. government and agency securities: U.S. Treasury securities $ 36,268 $ 40 $ 656 $ 35,652 U.S. agency securities 1 20,740 10 497 20,253 Total U.S. government and agency securities 57,008 50 1,153 55,905 Corporate and other debt: Agency CMBS 1,054 — 62 992 Non-agency CMBS 461 — 14 447 Corporate bonds 1,585 — 32 1,553 State and municipal securities 200 2 — 202 FFELP student loan ABS 2 1,967 10 15 1,962 Total corporate and other debt 5,267 12 123 5,156 Total AFS securities 62,275 62 1,276 61,061 HTM securities U.S. government and agency securities: U.S. Treasury securities 17,832 44 403 17,473 U.S. agency securities 1 12,456 8 446 12,018 Total U.S. government and agency securities 30,288 52 849 29,491 Corporate and other debt: Non-agency CMBS 483 — 9 474 Total HTM securities 30,771 52 858 29,965 Total investment securities $ 93,046 $ 114 $ 2,134 $ 91,026 1. U.S. agency securities consist mainly of agency-issued debt, agency mortgage pass-through pool securities and CMOs. 2. Underlying loans are backed by a guarantee, ultimately from the U.S. Department of Education, of at least 95% of the principal balance and interest outstanding. |
Schedule of Investment Securities in an Unrealized Loss Position | Investment Securities in an Unrealized Loss Position At December 31, 2019 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS securities U.S. government and agency securities: U.S. Treasury securities $ 4,793 $ 28 $ 7,904 $ 83 $ 12,697 $ 111 U.S. agency securities 2,641 20 7,697 80 10,338 100 Total U.S. government and agency securities 7,434 48 15,601 163 23,035 211 Corporate and other debt: Agency CMBS 2,294 26 681 31 2,975 57 Corporate bonds 194 1 44 — 238 1 FFELP student loan ABS 91 — 1,165 28 1,256 28 Total corporate and other debt 2,579 27 1,890 59 4,469 86 Total AFS securities 10,013 75 17,491 222 27,504 297 HTM securities U.S. government and agency securities: U.S. Treasury securities 6,042 52 651 — 6,693 52 U.S. agency securities 2,524 18 2,420 39 4,944 57 Total U.S. government and agency securities 8,566 70 3,071 39 11,637 109 Corporate and other debt: Non-agency CMBS 167 1 65 — 232 1 Total HTM securities 8,733 71 3,136 39 11,869 110 Total investment securities $ 18,746 $ 146 $ 20,627 $ 261 $ 39,373 $ 407 At December 31, 2018 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS securities U.S. government and agency securities: U.S. Treasury securities $ 19,937 $ 541 $ 5,994 $ 115 $ 25,931 $ 656 U.S. agency securities 12,904 383 4,142 114 17,046 497 Total U.S. government and agency securities 32,841 924 10,136 229 42,977 1,153 Corporate and other debt: Agency CMBS 808 62 — — 808 62 Non-agency CMBS — — 446 14 446 14 Corporate bonds 470 7 1,010 25 1,480 32 FFELP student loan ABS 1,366 15 — — 1,366 15 Total corporate and other debt 2,644 84 1,456 39 4,100 123 Total AFS securities 35,485 1,008 11,592 268 47,077 1,276 HTM securities U.S. government and agency securities: U.S. Treasury securities — — 11,161 403 11,161 403 U.S. agency securities 410 1 10,004 445 10,414 446 Total U.S. government and agency securities 410 1 21,165 848 21,575 849 Corporate and other debt: Non-agency CMBS 206 1 216 8 422 9 Total HTM securities 616 2 21,381 856 21,997 858 Total investment securities $ 36,101 $ 1,010 $ 32,973 $ 1,124 $ 69,074 $ 2,134 |
Schedule of Investment Securities by Contractual Maturity | Investment Securities by Contractual Maturity At December 31, 2019 $ in millions Amortized Fair Annualized AFS securities U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 2,293 $ 2,302 2.2 % After 1 year through 5 years 25,919 26,037 1.8 % After 5 years through 10 years 4,253 4,239 1.7 % Total 32,465 32,578 U.S. agency securities: Due within 1 year 310 310 1.0 % After 1 year through 5 years 362 359 1.4 % After 5 years through 10 years 1,380 1,373 1.8 % After 10 years 18,673 18,832 2.4 % Total 20,725 20,874 Total U.S. government and agency securities 53,190 53,452 2.0 % Corporate and other debt: Agency CMBS: After 1 year through 5 years 606 603 1.8 % After 5 years through 10 years 3,280 3,305 2.5 % After 10 years 924 900 2.0 % Total 4,810 4,808 Corporate bonds: Due within 1 year 43 43 1.7 % After 1 year through 5 years 1,448 1,462 2.6 % After 5 years through 10 years 400 402 2.9 % Total 1,891 1,907 State and municipal securities: After 1 year through 5 years 36 37 3.1 % After 5 years through 10 years 71 72 2.2 % After 10 years 374 394 4.7 % Total 481 503 FFELP student loan ABS: After 1 year through 5 years 71 69 0.8 % After 5 years through 10 years 377 367 0.8 % After 10 years 1,132 1,117 1.2 % Total 1,580 1,553 Total corporate and other debt 8,762 8,771 2.2 % Total AFS securities 61,952 62,223 2.0 % At December 31, 2019 $ in millions Amortized Fair Annualized HTM securities U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 2,436 $ 2,452 2.5 % After 1 year through 5 years 18,026 18,254 2.1 % After 5 years through 10 years 8,600 8,842 2.2 % After 10 years 1,083 1,113 2.5 % Total 30,145 30,661 U.S. agency securities: After 5 years through 10 years 46 45 1.8 % After 10 years 12,543 12,638 2.6 % Total 12,589 12,683 Total U.S. government and agency securities 42,734 43,344 2.3 % Corporate and other debt: Non-agency CMBS: Due within 1 year 91 91 4.9 % After 1 year through 5 years 125 125 5.5 % After 5 years through 10 years 514 532 5.3 % After 10 years 38 41 2.1 % Total corporate and other debt 768 789 4.0 % Total HTM securities 43,502 44,133 2.3 % Total investment securities $ 105,454 $ 106,356 2.2 % |
Schedule of Gross Realized Gains and Losses on Sales of AFS Securities | Gross Realized Gains (Losses) on Sales of AFS Securities $ in millions 2019 2018 2017 Gross realized gains $ 113 $ 12 $ 46 Gross realized (losses) (10 ) (4 ) (11 ) Total 1 $ 103 $ 8 $ 35 1. Realized gains and losses are recognized in Other revenues in the income statements. |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Collateralized Agreements [Abstract] | |
Schedule of Offsetting of Certain Collaterized Transactions | Offsetting of Certain Collateralized Transactions At December 31, 2019 $ in millions Gross Amounts Amounts Offset Balance Sheet Net Amounts Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 247,545 $ (159,321 ) $ 88,224 $ (85,200 ) $ 3,024 Securities borrowed 109,528 (2,979 ) 106,549 (101,850 ) 4,699 Liabilities Securities sold under agreements to repurchase $ 213,519 $ (159,319 ) $ 54,200 $ (44,549 ) $ 9,651 Securities loaned 11,487 (2,981 ) 8,506 (8,324 ) 182 Net amounts for which master netting agreements are not in place or may not be legally enforceable Securities purchased under agreements to resell $ 2,255 Securities borrowed 1,181 Securities sold under agreements to repurchase 8,033 Securities loaned 101 At December 31, 2018 $ in millions Gross Amounts Amounts Offset Balance Sheet Net Amounts Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 262,976 $ (164,454 ) $ 98,522 $ (95,610 ) $ 2,912 Securities borrowed 134,711 (18,398 ) 116,313 (112,551 ) 3,762 Liabilities Securities sold under agreements to repurchase $ 214,213 $ (164,454 ) $ 49,759 $ (41,095 ) $ 8,664 Securities loaned 30,306 (18,398 ) 11,908 (11,677 ) 231 Net amounts for which master netting agreements are not in place or may not be legally enforceable Securities purchased under agreements to resell $ 2,579 Securities borrowed 724 Securities sold under agreements to repurchase 6,762 Securities loaned 191 1. Amounts relate to master netting agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. |
Schedule of Gross Secured Financing Balances | Gross Secured Financing Balances by Remaining Contractual Maturity At December 31, 2019 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase $ 67,158 $ 81,300 $ 26,904 $ 38,157 $ 213,519 Securities loaned 2,378 3,286 516 5,307 11,487 Total included in the offsetting disclosure $ 69,536 $ 84,586 $ 27,420 $ 43,464 $ 225,006 Trading liabilities— 23,877 — — — 23,877 Total $ 93,413 $ 84,586 $ 27,420 $ 43,464 $ 248,883 At December 31, 2018 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase $ 56,503 $ 93,427 $ 35,692 $ 28,591 $ 214,213 Securities loaned 18,397 3,609 1,985 6,315 30,306 Total included in the offsetting disclosure $ 74,900 $ 97,036 $ 37,677 $ 34,906 $ 244,519 Trading liabilities— 17,594 — — — 17,594 Total $ 92,494 $ 97,036 $ 37,677 $ 34,906 $ 262,113 Gross Secured Financing Balances by Class of Collateral Pledged $ in millions At At Securities sold under agreements to repurchase U.S. Treasury and agency securities $ 68,895 $ 68,487 State and municipal securities 905 925 Other sovereign government obligations 109,414 120,432 ABS 2,218 3,017 Corporate and other debt 6,066 8,719 Corporate equities 25,563 12,079 Other 458 554 Total $ 213,519 $ 214,213 Securities loaned Other sovereign government obligations $ 3,026 $ 19,021 Corporate equities 8,422 10,800 Other 39 485 Total $ 11,487 $ 30,306 Total included in the offsetting disclosure $ 225,006 $ 244,519 Trading liabilities—Obligation to return securities received as collateral Corporate equities $ 23,873 $ 17,594 Other 4 — Total $ 23,877 $ 17,594 Total $ 248,883 $ 262,113 |
Schedule of Carrying Value of Assets Loaned or Pledged Without Counterparty Right to Sell or Repledge | Carrying Value of Assets Loaned or Pledged without Counterparty Right to Sell or Repledge $ in millions At At Trading assets $ 41,201 $ 39,430 Loans (gross of allowance for loan losses) 750 — Total $ 41,951 $ 39,430 |
Schedule of Fair Value of Collateral Received with Right to Sell or Repledge | Fair Value of Collateral Received with Right to Sell or Repledge $ in millions At At Collateral received with right to sell $ 679,280 $ 639,610 Collateral that was sold or repledged 1 539,412 487,983 1. Does not include securities used to meet federal regulations for the Firm’s U.S. broker-dealers. |
Schedule of Restricted Cash and Segregated Securities | Restricted Cash and Segregated Securities $ in millions At At Restricted cash $ 32,512 $ 35,356 Segregated securities 1 25,061 26,877 Total $ 57,573 $ 62,233 1. Securities segregated under federal regulations for the Firm’s U.S. broker-dealers are sourced from Securities purchased under agreements to resell and Trading assets in the balance sheets. |
Schedule of Concentration Based on the Firm's Total Assets | Concentration Based on the Firm’s Total Assets At At U.S. government and agency securities and other sovereign government obligations Trading assets 1 10 % 12 % Off balance sheet—Collateral received 2 12 % 17 % 1. Other sovereign government obligations included in Trading assets primarily consist of the U.K., Japan and Australia at December 31, 2019 , and UK., Japan and Brazil at December 31, 2018 . 2. Collateral received is primarily related to Securities purchased under agreements to resell and Securities borrowed. |
Schedule of Customer Margin Lending | Customer Margin Lending $ in millions At At Customer receivables representing margin loans $ 31,916 $ 26,225 |
Loans, Lending Commitments an_2
Loans, Lending Commitments and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of Loans by Type | Loans by Type At December 31, 2019 $ in millions Loans Held for Investment Loans Held for Sale Total Loans Corporate $ 48,756 $ 10,515 $ 59,271 Consumer 31,610 — 31,610 Residential real estate 30,184 13 30,197 Commercial real estate 1 7,859 2,049 9,908 Total loans, gross 118,409 12,577 130,986 Allowance for loan losses (349 ) — (349 ) Total loans, net $ 118,060 $ 12,577 $ 130,637 Fixed rate loans, net $ 22,716 Floating or adjustable rate loans, net 107,921 Loans to non-U.S. borrowers, net 21,617 At December 31, 2018 $ in millions Loans Held for Investment Loans Held for Sale Total Loans Corporate $ 36,909 $ 13,886 $ 50,795 Consumer 27,868 — 27,868 Residential real estate 27,466 22 27,488 Commercial real estate 1 7,810 1,856 9,666 Total loans, gross 100,053 15,764 115,817 Allowance for loan losses (238 ) — (238 ) Total loans, net $ 99,815 $ 15,764 $ 115,579 Fixed rate loans, net $ 15,632 Floating or adjustable rate loans, net 99,947 Loans to non-U.S. borrowers, net 17,568 1. Beginning in 2019, loans previously referred to as Wholesale real estate are referred to as Commercial real estate. |
Schedule of Loans Held for Investment before Allowance by Credit Quality | Loans Held for Investment before Allowance by Credit Quality 1 At December 31, 2019 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total Pass $ 47,681 $ 31,605 $ 30,060 $ 7,664 $ 117,010 Special mention 464 — 28 3 495 Substandard 605 5 96 192 898 Doubtful 6 — — — 6 Total $ 48,756 $ 31,610 $ 30,184 $ 7,859 $ 118,409 At December 31, 2018 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total Pass $ 36,217 $ 27,863 $ 27,387 $ 7,378 $ 98,845 Special mention 492 5 — 312 809 Substandard 200 — 79 120 399 Doubtful — — — — — Total $ 36,909 $ 27,868 $ 27,466 $ 7,810 $ 100,053 1. There were no loans held for investment considered Loss as of December 31, 2019 and 2018. |
Schedule of Impaired Loans and Lending Commitments before Allowance | Impaired Loans and Lending Commitments before Allowance At December 31, 2019 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total Loans With allowance $ 268 $ — $ — $ 85 $ 353 Without allowance 1 32 5 87 — 124 Total impaired loans $ 300 $ 5 $ 87 $ 85 $ 477 UPB 309 5 90 85 489 Lending commitments With allowance $ 4 $ — $ — $ 14 $ 18 Without allowance 1 32 — — — 32 Total impaired lending commitments $ 36 $ — $ — $ 14 $ 50 At December 31, 2018 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total Loans With allowance $ 24 $ — $ — $ — $ 24 Without allowance 1 32 — 69 — 101 Total impaired loans $ 56 $ — $ 69 $ — $ 125 UPB 63 — 70 — 133 Lending commitments With allowance $ 19 $ — $ — $ — $ 19 Without allowance 1 34 — — — 34 Total impaired lending commitments $ 53 $ — $ — $ — $ 53 1. At December 31, 2019 and December 31, 2018 , no allowance was recorded for these loans and lending commitments as the present value of the expected future cash flows or value of the collateral held equaled or exceeded the carrying value. |
Schedule of Impaired Loans and Allowance by Region | Impaired Loans and Total Allowance by Region At December 31, 2019 $ in millions Americas EMEA Asia Total Impaired loans $ 392 $ 85 $ — $ 477 Total Allowance for loan losses 270 76 3 349 At December 31, 2018 $ in millions Americas EMEA Asia Total Impaired loans $ 125 $ — $ — $ 125 Total Allowance for loan losses 193 42 3 238 |
Schedule of Troubled Debt Restructurings | Troubled Debt Restructurings $ in millions At At Loans $ 92 $ 38 Lending commitments 32 45 Allowance for loan losses and lending commitments 16 4 |
Schedule of Activity of Allowance for Loan Losses and Lending Commitments | Allowance for Loan Losses Rollforward $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total December 31, 2018 $ 144 $ 7 $ 20 $ 67 $ 238 Gross charge-offs — — (2 ) — (2 ) Recoveries — — — — — Net recoveries (charge-offs) — — (2 ) — (2 ) Provision (release) 104 1 7 8 120 Other (7 ) — — — (7 ) December 31, 2019 $ 241 $ 8 $ 25 $ 75 $ 349 Inherent $ 212 $ 8 $ 25 $ 73 $ 318 Specific 29 — — 2 31 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total December 31, 2017 $ 126 $ 4 $ 24 $ 70 $ 224 Gross charge-offs (5 ) — (1 ) — (6 ) Recoveries 54 — — — 54 Net recoveries (charge-offs) 49 — (1 ) — 48 Provision (release) 1 (29 ) 3 (3 ) 5 (24 ) Other (2 ) — — (8 ) (10 ) December 31, 2018 $ 144 $ 7 $ 20 $ 67 $ 238 Inherent $ 139 $ 7 $ 20 $ 67 $ 233 Specific 5 — — — 5 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total December 31, 2016 $ 195 $ 4 $ 20 $ 55 $ 274 Gross charge-offs (75 ) — — — (75 ) Recoveries 1 — — — 1 Net recoveries (charge-offs) (74 ) — — — (74 ) Provision (release) 5 — 4 13 22 Other — — — 2 2 December 31, 2017 $ 126 $ 4 $ 24 $ 70 $ 224 Inherent $ 119 $ 4 $ 24 $ 70 $ 217 Specific 7 — — — 7 1. During 2018, the release was primarily due to the recovery of an energy industry related loan charged off in 2017. Allowance for Lending Commitments Rollforward $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total December 31, 2018 $ 198 $ 2 $ — $ 3 $ 203 Provision (release) 38 — — 4 42 Other (4 ) — — — (4 ) December 31, 2019 $ 232 $ 2 $ — $ 7 $ 241 Inherent $ 230 $ 2 $ — $ 7 $ 239 Specific 2 — — — 2 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total December 31, 2017 $ 194 $ 1 $ — $ 3 $ 198 Provision (release) 7 1 — 1 9 Other (3 ) — — (1 ) (4 ) December 31, 2018 $ 198 $ 2 $ — $ 3 $ 203 Inherent $ 193 $ 2 $ — $ 3 $ 198 Specific 5 — — — 5 $ in millions Corporate Consumer Residential Real Estate Commercial Real Estate Total December 31, 2016 $ 185 $ 1 $ — $ 4 $ 190 Provision (release) 8 — — (1 ) 7 Other 1 — — — 1 December 31, 2017 $ 194 $ 1 $ — $ 3 $ 198 Inherent $ 192 $ 1 $ — $ 3 $ 196 Specific 2 — — — 2 |
Schedule of Employee Loans | Employee Loans $ in millions At At Balance $ 2,980 $ 3,415 Allowance for loan losses (61 ) (63 ) Balance, net $ 2,919 $ 3,352 Remaining repayment term, weighted average in years 4.8 4.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Rollforward | Goodwill Rollforward $ in millions IS WM IM Total At December 31, 2017¹ $ 295 $ 5,533 $ 769 $ 6,597 Foreign currency and other (21 ) — — (21 ) Acquired — — 112 112 At December 31, 2018¹ $ 274 $ 5,533 $ 881 $ 6,688 Foreign currency and other (13 ) (1 ) — (14 ) Acquired 2 — 469 — 469 At December 31, 2019 1 $ 261 $ 6,001 $ 881 $ 7,143 Accumulated impairments 3 $ 673 $ — $ 27 $ 700 IS—Institutional Securities WM—Wealth Management IM—Investment Management 1. Balances represent the amount of the Firm’s goodwill after accumulated impairments. 2. Amounts reflect the impact of the Firm's acquisition of Solium Capital Inc. in the second quarter of 2019. 3. Accumulated impairments were recorded prior to the periods shown. There were no impairments recorded in 2019 , 2018 or 2017 |
Schedule of Net Amortizable Intangible Assets Rollforward | Net Amortizable Intangible Assets Rollforward 1 $ in millions IS WM IM Total At December 31, 2017 $ 349 $ 2,092 $ 4 $ 2,445 Acquired — — 66 66 Disposals (6 ) — — (6 ) Amortization expense (70 ) (264 ) (10 ) (344 ) Other (3 ) — — (3 ) At December 31, 2018 $ 270 $ 1,828 $ 60 $ 2,158 Acquired 2 3 270 — 273 Disposals (29 ) — — (29 ) Amortization expense (35 ) (271 ) (8 ) (314 ) Other 18 1 — 19 At December 31, 2019 $ 227 $ 1,828 $ 52 $ 2,107 |
Schedule of Gross Amortizable Intangible Assets by Type | Gross Amortizable Intangible Assets by Type 1 At December 31, 2019 At December 31, 2018 $ in millions Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Tradenames $ 291 $ 71 $ 286 $ 60 Customer relationships 4,321 2,703 4,067 2,446 Management contracts 482 327 507 311 Other 217 103 175 60 Total $ 5,311 $ 3,204 $ 5,035 $ 2,877 Estimated annual amortization expense for the next five years $ 307 1. Amounts exclude $5 million of mortgage servicing rights in 2018. 2. Amounts principally reflect the impact of the Firm's acquisition of Solium Capital Inc. in the second quarter of 2019. |
Other Assets - Equity Method _2
Other Assets - Equity Method Investments and Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Equity Method Investments | Equity Method Investments $ in millions At At Investments $ 2,363 $ 2,432 $ in millions 2019 2018 2017 Income (loss) 1 $ (81 ) $ 20 $ (34 ) 1. Includes impairments of the Investment Management business segment’s equity method investments as follows: in 2019 , $41 million related to a third-party asset manager; in 2018 and 2017 , $46 million and $53 million |
Schedule of Japanese Securities Joint Venture | Japanese Securities Joint Venture $ in millions 2019 2018 2017 Income from investment in MUMSS $ 17 $ 105 $ 123 |
Schedule of Balance Sheet Amounts Related to Leases | Balance Sheet Amounts Related to Leases $ in millions At Other assets—ROU assets $ 3,998 Other liabilities and accrued expenses—Lease liabilities 4,778 Weighted average: Remaining lease term, in years 9.7 Discount rate 3.6 % |
Schedule of Lease Liabilities | Lease Liabilities $ in millions At 2020 $ 763 2021 703 2022 646 2023 593 2024 524 Thereafter 2,845 Total undiscounted cash flows 6,074 Imputed interest (1,296 ) Amount on balance sheet $ 4,778 Committed leases not yet commenced $ 55 |
Schedule of Lease Costs and Rent Expense | $ in millions 2018 2017 Rent expense 753 704 Lease Costs $ in millions 2019 Fixed costs $ 670 Variable costs 1 152 Less: Sublease income (6 ) Total lease cost, net $ 816 1. Includes common area maintenance charges and other variable costs not included in the measurement of ROU assets and lease liabilities. |
Schedule of Cash Flows Statement Supplemental Information | Cash Flows Statement Supplemental Information $ in millions 2019 Cash outflows—Lease liabilities $ 685 Non-cash—ROU assets recorded for new and modified leases 514 |
Schedule of Minimum Future Lease Commitments (under Previous GAAP) | Minimum Future Lease Commitments (under Previous GAAP) $ in millions At 2019 $ 677 2020 657 2021 602 2022 555 2023 507 Thereafter 2,639 Total $ 5,637 Total minimum rental income to be received in the future under non-cancelable operating subleases $ 7 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposits $ in millions At At Savings and demand deposits $ 149,465 $ 154,897 Time deposits 40,891 32,923 Total $ 190,356 $ 187,820 Deposits subject to FDIC insurance $ 149,966 $ 144,515 Time deposits that equal or exceed the FDIC insurance limit $ 12 $ 11 |
Schedule of Time Deposit Maturities | Time Deposit Maturities $ in millions At 2020 $ 20,481 2021 10,567 2022 3,507 2023 3,231 2024 2,465 Thereafter 640 Total $ 40,891 |
Borrowings and Other Secured _2
Borrowings and Other Secured Financings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities and Terms of Borrowings | Maturities and Terms of Borrowings Parent Company Subsidiaries At At $ in millions Fixed Rate Variable Rate 1 Fixed Rate Variable Rate 1 Original maturities of one year or less: Next 12 months 2 $ 500 $ — $ — $ 2,067 $ 2,567 $ 1,545 Original maturities greater than one year: 2019 $ — $ — $ — $ — $ — $ 24,694 2020 10,909 4,319 14 5,160 20,402 21,280 2021 13,616 7,823 18 4,628 26,085 24,642 2022 6,576 9,508 16 3,788 19,888 16,785 2023 8,632 3,147 14 2,822 14,615 13,938 2024 13,360 2,028 14 5,704 21,106 16,405 Thereafter 52,941 14,436 125 20,462 87,964 70,373 Total $ 106,034 $ 41,261 $ 201 $ 42,564 $ 190,060 $ 188,117 Total borrowings $ 106,534 $ 41,261 $ 201 $ 44,631 $ 192,627 $ 189,662 Weighted average coupon at period end 3 3.6 % 2.1 % 6.6 % N/M 3.4 % 3.5 % 1. Variable rate borrowings bear interest based on a variety of indices, including LIBOR, federal funds rates and SOFR. Amounts include notes carried at fair value with various payment provisions, including notes linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures, and instruments with various interest-rate-related features, including step-ups, step-downs and zero coupons. 2. The amount shown for the Parent Company represents amounts due to holders of the Firm's Series G preferred stock for which a notice of redemption was issued. See Note 16 for further information. 3. Only includes borrowings with original maturities greater than one year. Weighted average coupon is calculated utilizing U.S. and non-U.S. dollar interest rates and excludes financial instruments for which the fair value option was elected. Virtually all of the variable rate notes issued by subsidiaries are carried at fair value so a weighted average coupon is not meaningful. |
Schedule of Borrowings with Original Maturities Greater than One Year | Rates for Borrowings with Original Maturities Greater than One Year At December 31, 2019 2018 2017 Contractual weighted average coupon 1 3.4 % 3.5 % 3.3 % Effective weighted average coupon after swaps 2.9 % 3.6 % 2.5 % 1. Weighted average coupon was calculated utilizing U.S. and non-U.S. dollar interest rates and excludes financial instruments for which the fair value option was elected. Borrowings with Original Maturities Greater than One Year $ in millions At At Senior $ 179,519 $ 178,027 Subordinated 10,541 10,090 Total $ 190,060 $ 188,117 Weighted average stated maturity, in years 6.9 6.5 |
Schedule of Senior Debt Subject to Put Options or Liquidity Obligations | Senior Debt Subject to Put Options or Liquidity Obligations $ in millions At At Put options embedded in debt agreements $ 290 $ 520 Liquidity obligations 1 $ 1,344 $ 1,284 1. Includes obligations to support secondary market trading. |
Schedule of Subordinated Debt | Subordinated Debt 2019 2018 Contractual weighted average coupon 4.5 % 4.5 % |
Schedule of Other Secured Financings | Other Secured Financings $ in millions At At Original maturities: One year or less 7,103 2,036 Greater than one year 6,480 6,772 Transfers of assets accounted for as secured financings 1,115 658 Total $ 14,698 $ 9,466 Maturities and Terms of Other Secured Financings At December 31, 2019 At $ in millions Fixed Rate Variable Rate 1 Total Original maturities of one year or less: Next 12 months $ 2,785 $ 4,318 $ 7,103 $ 2,036 Original maturities greater than one year: 2019 $ — $ — $ — $ 5,900 2020 764 899 1,663 599 2021 698 412 1,110 1 2022 227 — 227 86 2023 — 2,655 2,655 26 2024 — 12 12 12 Thereafter 356 457 813 148 Total $ 2,045 $ 4,435 $ 6,480 $ 6,772 Weighted average coupon at period-end 2 0.8 % 2.5 % 2.4 % 2.5 % 1. Variable rate other secured financings bear interest based on a variety of indices, including LIBOR and federal funds rates. Amounts include notes carried at fair value with various payment provisions, including notes linked to equity, credit, commodity or other indices. 2. Includes only other secured financings with original maturities greater than one year. Weighted average coupon is calculated utilizing U.S. and non-U.S. dollar interest rates and excludes other secured financings that are linked to non-interest indices and for which the fair value option was elected. Maturities of Transfers of Assets Accounted for as Secured Financings 1 $ in millions At At 2019 $ — $ 40 2020 208 62 2021 225 29 2022 46 33 2023 334 — 2024 — — Thereafter 302 494 Total $ 1,115 $ 658 1. Excludes Securities sold under agreements to repurchase and Securities loaned. |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments | 13 . Commitments, Guarantees and Contingencies |
Schedule of Obligations under Guarantee Arrangements | Obligations under Guarantee Arrangements at December 31, 2019 Maximum Potential Payout/Notional Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Credit derivatives $ 36,334 $ 37,080 $ 111,758 $ 30,547 $ 215,719 Other credit contracts — — — 117 117 Non-credit derivatives 1,590,947 1,240,195 393,248 699,043 3,923,433 Standby letters of credit and other financial guarantees issued 1 1,282 836 1,386 4,201 7,705 Market value guarantees 76 82 — — 158 Liquidity facilities 4,599 — — — 4,599 Whole loan sales guarantees — — — 23,196 23,196 Securitization representations and warranties — — — 67,928 67,928 General partner guarantees 59 128 12 71 270 Client clearing guarantees 18,565 — — — 18,565 $ in millions Carrying Amount Asset (Liability) Credit derivatives 2 $ 1,703 Other credit contracts (17 ) Non-credit derivatives 2 (45,794 ) Standby letters of credit and other financial guarantees issued 1 226 Market value guarantees — Liquidity facilities 6 Whole loan sales guarantees — Securitization representations and warranties 3 (42 ) General partner guarantees (42 ) Client clearing guarantees — 1. These amounts include certain issued standby letters of credit participated to third parties, totaling $0.7 billion of notional and collateral/recourse, due to the nature of the Firm’s obligations under these arrangements. 2. The carrying amounts of derivative contracts that meet the accounting definition of a guarantee are shown on a gross basis. 3. Primarily related to residential mortgage securitizations. |
Schedule of Legal Expenses | $ in millions 2019 2018 2017 Legal expenses $ 221 $ 206 $ 342 |
Variable Interest Entities an_2
Variable Interest Entities and Securitization Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities and Securitization Activities [Abstract] | |
Schedule of Consolidated VIEs | Consolidated VIE Assets and Liabilities by Type of Activity At December 31, 2019 At December 31, 2018 $ in millions VIE Assets VIE Liabilities VIE Assets VIE Liabilities OSF $ 696 $ 391 $ 267 $ — MABS 1 265 4 59 38 Other 2 987 66 809 48 Total $ 1,948 $ 461 $ 1,135 $ 86 OSF—Other structured financings 1. Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets. and may be in loan or security form. The value of assets is determined based on the fair value of the liabilities and the interests owned by the Firm in such VIEs as the fair values for the liabilities and interests owned are more observable. 2. Other primarily includes operating entities, investment funds and structured transactions. Consolidated VIE Assets and Liabilities by Balance Sheet Caption $ in millions At At Assets Cash and cash equivalents: Cash and due from banks $ 315 $ 77 Restricted cash 173 171 Trading assets at fair value 943 314 Customer and other receivables 18 25 Goodwill — 18 Intangible assets 111 128 Other assets 388 402 Total $ 1,948 $ 1,135 Liabilities Other secured financings $ 422 $ 64 Other liabilities and accrued expenses 39 22 Total $ 461 $ 86 Noncontrolling interests $ 192 $ 106 |
Schedule of Non-Consolidated VIEs | Non-consolidated VIEs At December 31, 2019 $ in millions MABS 1 CDO MTOB OSF Other 2 VIE assets (UPB) $ 125,603 $ 2,976 $ 6,965 $ 2,288 $ 51,305 Maximum exposure to loss 3 Debt and equity interests $ 16,314 $ 240 $ — $ 1,009 $ 11,977 Derivative and other contracts — — 4,599 — 2,995 Commitments, guarantees and other 631 — — — 266 Total $ 16,945 $ 240 $ 4,599 $ 1,009 $ 15,238 Carrying value of variable interests—Assets Debt and equity interests $ 16,314 $ 240 $ — $ 1,008 $ 11,977 Derivative and other contracts — — 6 — 388 Total $ 16,314 $ 240 $ 6 $ 1,008 $ 12,365 Additional VIE assets owned 4 $ 11,453 Carrying value of variable interests—Liabilities Derivative and other contracts $ — $ — $ — $ — $ 444 At December 31, 2018 5 $ in millions MABS 1 CDO MTOB OSF Other 2 VIE assets (UPB) $ 106,197 $ 10,848 $ 7,014 $ 3,314 $ 38,603 Maximum exposure to loss 3 Debt and equity interests $ 15,671 $ 1,169 $ — $ 1,622 $ 7,967 Derivative and other contracts — — 4,449 — 1,768 Commitments, guarantees and other 1,073 3 — 235 509 Total $ 16,744 $ 1,172 $ 4,449 $ 1,857 $ 10,244 Carrying value of variable interests—Assets Debt and equity interests $ 15,671 $ 1,169 $ — $ 1,205 $ 7,967 Derivative and other contracts — — 6 — 87 Total $ 15,671 $ 1,169 $ 6 $ 1,205 $ 8,054 Additional VIE assets owned 4 $ 12,059 Carrying value of variable interests—Liabilities Derivative and other contracts $ — $ — $ — $ — $ 185 MTOB—Municipal tender option bonds 1. Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets. and may be in loan or security form. 2. Other primarily includes exposures to commercial real estate property and investment funds. 3. Where notional amounts are utilized in quantifying the maximum exposure related to derivatives, such amounts do not reflect changes in fair value recorded by the Firm. 4. Additional VIE assets owned represents the carrying value of total exposure to non-consolidated VIEs for which the maximum exposure to loss is less than specific thresholds, primarily interests issued by securitization SPEs. The Firm’s primary risk exposure is to the most subordinate class of beneficial interest and maximum exposure to loss generally equals the fair value of the assets owned. These assets are primarily included in Trading assets and Investment securities and are measured at fair value (see Note 3 ). The Firm does not provide additional support in these transactions through contractual facilities, guarantees or similar derivatives. 5. The carrying value and maximum exposure to loss of variable interests related to MABS and Other have been revised to reflect the addition of approximately $11 billion in loans to VIEs that were previously excluded. The VIE asset (UPB) amounts have also been revised by approximately $54 billion . This disclosure-only revision did not impact the Firm's balance sheets. |
Schedule of Mortgage- and Asset-Backed Securitization Assets | Detail of Mortgage- and Asset-Backed Securitization Assets At December 31, 2019 At December 31, 2018 1 $ in millions UPB Debt and Equity Interests UPB Debt and Equity Interests Residential mortgages $ 30,353 $ 3,993 $ 27,594 $ 4,581 Commercial mortgages 53,892 3,881 55,501 4,327 U.S. agency collateralized mortgage obligations 36,366 6,365 14,969 3,443 Other consumer or commercial loans 4,992 2,075 8,133 3,320 Total $ 125,603 $ 16,314 $ 106,197 $ 15,671 1. The balances as of December 31, 2018 were revised as noted in the Non-consolidated VIEs table herein. |
Schedule of Transfers of Assets with Continuing Involvement | Transferred Assets with Continuing Involvement 1 At December 31, 2019 2 $ in millions RML CML U.S. Agency CMO CLN and Other 3 SPE assets (UPB) 4 $ 9,850 $ 86,203 $ 19,132 $ 8,410 Retained interests Investment grade $ 29 $ 720 $ 2,376 $ 1 Non-investment grade 17 254 — 92 Total $ 46 $ 974 $ 2,376 $ 93 Interests purchased in the secondary market Investment grade $ 6 $ 197 $ 77 $ — Non-investment grade 75 51 — — Total $ 81 $ 248 $ 77 $ — Derivative assets $ — $ — $ — $ 339 Derivative liabilities — — — 145 December 31, 2018 $ in millions RML CML U.S. Agency CMO CLN and Other 3 SPE assets (UPB) 4 $ 14,376 $ 68,593 $ 16,594 $ 14,608 Retained interests Investment grade $ 17 $ 483 $ 1,573 $ 3 Non-investment grade 4 212 — 210 Total $ 21 $ 695 $ 1,573 $ 213 Interests purchased in the secondary market Investment grade $ 7 $ 91 $ 102 $ — Non-investment grade 28 71 — — Total $ 35 $ 162 $ 102 $ — Derivative assets $ — $ — $ — $ 216 Derivative liabilities — — — 178 Fair Value at December 31, 2019 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 2,401 $ 4 $ 2,405 Non-investment grade 6 97 103 Total $ 2,407 $ 101 $ 2,508 Interests purchased in the secondary market Investment grade $ 278 $ 2 $ 280 Non-investment grade 68 58 126 Total $ 346 $ 60 $ 406 Derivative assets $ 337 $ 2 $ 339 Derivative liabilities 144 1 145 Fair Value at December 31, 2018 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 1,580 $ 13 $ 1,593 Non-investment grade 174 252 426 Total $ 1,754 $ 265 $ 2,019 Interests purchased in the secondary market Investment grade $ 193 $ 7 $ 200 Non-investment grade 83 16 99 Total $ 276 $ 23 $ 299 Derivative assets $ 121 $ 95 $ 216 Derivative liabilities 175 3 178 RML—Residential mortgage loans CML—Commercial mortgage loans 1. The Transferred Assets with Continuing Involvement tables include transactions with SPEs in which the Firm, acting as principal, transferred financial assets with continuing involvement and received sales treatment. See Note 12 for information on certain other transfers of assets to SPEs which are accounted for as financings. 2. As permitted by applicable guidance, certain transfers of assets where the Firm’s only continuing involvement is a derivative are only reported in the following Assets Sold with Retained Exposure table, and are no longer also included in this table. At December 31, 2018 these transactions were included in CLN and Other and comprised approximately $8 billion in UPB, $20 million in Derivative assets and $119 million in Derivative liabilities. 3. Amounts include CLO transactions managed by unrelated third parties. 4. Amounts include assets transferred by unrelated transferors. |
Schedule of Proceeds from New Securitization Transactions and Sales of Loans | Proceeds from New Securitization Transactions and Sales of Loans $ in millions 2019 2018 2017 New transactions 1 $ 34,464 $ 23,821 $ 23,939 Retained interests 7,403 2,904 2,337 Sales of corporate loans to CLO SPEs 1, 2 2 317 191 1. Net gains on new transactions and sales of corporate loans to CLO entities at the time of the sale were not material for all periods presented. 2. Sponsored by non-affiliates. |
Schedule of Assets Sold with Retained Exposure | Assets Sold with Retained Exposure $ in millions December 31, 2019 December 31, 2018 Gross cash proceeds from sale of assets 1 $ 38,661 $ 27,121 Fair value Assets sold $ 39,137 $ 26,524 Derivative assets recognized 647 164 Derivative liabilities recognized 152 763 1. The carrying value of assets derecognized at the time of sale approximates gross cash proceeds. |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | The Firm’s Regulatory Capital and Capital Ratios At December 31, 2019 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 10.0 % $ 64,751 16.4 % Tier 1 capital 11.5 % 73,443 18.6 % Total capital 13.5 % 82,708 21.0 % Total RWA 394,177 Leverage-based capital Tier 1 leverage 4.0 % $ 73,443 8.3 % Adjusted average assets 2 889,195 SLR 5.0 % 73,443 6.4 % Supplementary leverage exposure 3 1,155,177 At December 31, 2018 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 8.6 % $ 62,086 16.9 % Tier 1 capital 10.1 % 70,619 19.2 % Total capital 12.1 % 80,052 21.8 % Total RWA 367,309 Leverage-based capital Tier 1 leverage 4.0 % $ 70,619 8.4 % Adjusted average assets 2 843,074 SLR 5.0 % 70,619 6.5 % Supplementary leverage exposure 3 1,092,672 1. Required ratios are inclusive of any buffers applicable as of the date presented. For 2018, the required regulatory capital ratios for risk-based capital are under the transitional rules. Failure to maintain the buffers would result in restrictions on the Firm’s ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. 2. Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in the Firm's own capital instruments, certain defined tax assets and other capital deductions. 3. Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures. |
Schedule of Restrictions on Payments | Restrictions on Payments The regulatory capital requirements referred to above, and certain covenants contained in various agreements governing indebtedness of the Firm, may restrict the Firm’s ability to withdraw capital from its subsidiaries. The following table represents net assets of consolidated subsidiaries that may be restricted as to the payment of cash dividends and advances to the Parent Company. $ in millions At At Restricted net assets $ 33,213 $ 29,222 |
MSBNA | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | MSBNA’s Regulatory Capital At December 31, 2019 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 6.5 % $ 15,919 18.5 % Tier 1 capital 8.0 % 15,919 18.5 % Total capital 10.0 % 16,282 18.9 % Leverage-based capital Tier 1 leverage 5.0 % $ 15,919 11.3 % SLR 6.0 % 15,919 8.7 % At December 31, 2018 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 6.5 % $ 15,221 19.5 % Tier 1 capital 8.0 % 15,221 19.5 % Total capital 10.0 % 15,484 19.8 % Leverage-based capital Tier 1 leverage 5.0 % $ 15,221 10.5 % SLR 6.0 % 15,221 8.2 % |
MSPBNA | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | MSPBNA’s Regulatory Capital At December 31, 2019 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 6.5 % $ 7,962 24.8 % Tier 1 capital 8.0 % 7,962 24.8 % Total capital 10.0 % 8,016 25.0 % Leverage-based capital Tier 1 leverage 5.0 % $ 7,962 9.9 % SLR 6.0 % 7,962 9.4 % At December 31, 2018 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 6.5 % $ 7,183 25.2 % Tier 1 capital 8.0 % 7,183 25.2 % Total capital 10.0 % 7,229 25.4 % Leverage-based capital Tier 1 leverage 5.0 % $ 7,183 10.0 % SLR 6.0 % 7,183 9.6 % 1. Ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. |
MS&Co. | |
Regulatory Requirements | |
Schedule of Broker-Dealer Regulatory Capital Requirements | U.S. Broker-Dealer Regulatory Capital Requirements MS&Co. Regulatory Capital $ in millions At At Net capital $ 13,708 $ 13,797 Excess net capital 10,686 11,333 |
MSSB LLC | |
Regulatory Requirements | |
Schedule of Broker-Dealer Regulatory Capital Requirements | Regulatory Capital $ in millions At At Net capital $ 3,387 $ 3,455 Excess net capital 3,238 3,313 |
Total Equity (Tables)
Total Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Rollforward of Common Stock Outstanding | Rollforward of Common Stock Outstanding in millions 2019 2018 Shares outstanding at beginning of period 1,700 1,788 Treasury stock purchases 1 (135 ) (110 ) Other 2 29 22 Shares outstanding at end of period 1,594 1,700 1. The Firm’s Board has authorized the repurchase of the Firm’s outstanding stock under a share repurchase program (“Share Repurchase Program”). In addition to the Firm’s Share Repurchase Program, Treasury stock purchases include repurchases of common stock for employee tax withholding. 2. Other includes net shares issued to and forfeited from Employee stock trusts and issued for RSU conversions. |
Schedule of Share Repurchases | Share Repurchases $ in millions 2019 2018 Repurchases of common stock under the Firm’s Share Repurchase Program $ 5,360 $ 4,860 |
Schedule of Common Stock Dividends Per Share | Common Stock Dividends per Share 2019 2018 2017 Dividends declared per common share $ 1.30 $ 1.10 $ 0.90 |
Schedule of Reconciliation of Common Shares Outstanding for Diluted EPS | Common Shares Outstanding for Basic and Diluted EPS in millions 2019 2018 2017 Weighted average common shares outstanding, basic 1,617 1,708 1,780 Effect of dilutive Stock options, RSUs and PSUs 23 30 41 Weighted average common shares outstanding and common stock equivalents, diluted 1,640 1,738 1,821 Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS) 2 1 — |
Schedule of Preferred Stock Outstanding, Issuance Description and Dividends | Preferred Stock Shares Outstanding Carrying Value $ in millions, except per share data At Liquidation Preference per Share At At Series A 44,000 $ 25,000 $ 1,100 $ 1,100 C 1 519,882 1,000 408 408 E 34,500 25,000 862 862 F 34,000 25,000 850 850 G — — — 500 H 52,000 25,000 1,300 1,300 I 40,000 25,000 1,000 1,000 J 60,000 25,000 1,500 1,500 K 40,000 25,000 1,000 1,000 L 20,000 25,000 500 — Total $ 8,520 $ 8,520 1. Series C is composed of the issuance of 1,160,791 shares of Series C Preferred Stock to MUFG for an aggregate purchase price of $911 million , less the redemption of 640,909 shares of Series C Preferred Stock of $503 million , which were converted to common shares of approximately $705 million in 2009. Preferred Stock Issuance Description Depositary Shares per Share Redemption Series 1, 2 Shares Issued Price per Share 3 Date 4 A 44,000 1,000 $ 25,000 July 15, 2011 C 5 1,160,791 N/A 1,100 October 15, 2011 E 34,500 1,000 25,000 October 15, 2023 F 34,000 1,000 25,000 January 15, 2024 H 52,000 25 25,000 July 15, 2019 I 40,000 1,000 25,000 October 15, 2024 J 60,000 25 25,000 July 15, 2020 K 40,000 1,000 25,000 April 15, 2027 L 6 20,000 1,000 25,000 January 15, 2025 1. All shares issued are non-cumulative. Each share has a par value of $0.01 , except Series C. 2. Dividends on Series A are based on a floating rate, and dividends on Series C and L are based on a fixed rate. Dividends on all other Series are based on a fixed-to-floating rate. 3. Series A and C are redeemable at the redemption price plus accrued and unpaid dividends, regardless of whether dividends are actually declared, up to but excluding the date of redemption. All other Series are redeemable at the redemption price plus any declared and unpaid dividends, up to but excluding the date fixed for redemption. 4. Series A and C are redeemable at the Firm’s option, in whole or in part, on or after the redemption date. All other Series are redeemable at the Firm’s option (i) in whole or in part, from time to time, on any dividend payment date on or after the redemption date or (ii) in whole but not in part at any time within 90 days following a regulatory capital treatment event (as described in the terms of that series). 5. Series C is non-voting perpetual preferred stock. Dividends on the Series C preferred stock are payable, on a non-cumulative basis, as and if declared by the Board, in cash, at the rate of 10% per annum of the liquidation preference of $1,000 per share. 6. Series L Preferred Stock was issued on November 25, 2019. Preferred Stock Dividends $ in millions, except per share data 2019 2018 2017 Per Share 1 Total Per Share 1 Total Per Share 1 Total Series A $ 1,014 $ 44 $ 1,011 $ 45 $ 1,014 $ 45 C 100 52 100 52 100 52 E 1,781 60 1,781 61 1,781 61 F 1,719 60 1,719 58 1,719 58 G 2 1,242 24 1,656 33 1,656 33 H 3 1,418 74 1,363 71 1,363 71 I 1,594 64 1,594 64 1,594 64 J 4 1,388 84 1,388 83 1,388 83 K 1,463 59 1,463 59 1,402 56 L 169 3 — — — — Total $ 524 $ 526 $ 523 1. Dividends on all series are payable quarterly, unless otherwise noted. 2. Dividends declared on Series G following the issuance of the notice of redemption were recognized as Interest expense and are excluded from 2019 amounts. 3. Series H was payable semiannually until July 15, 2019, and is now payable quarterly. 4. Series J is payable semiannually until July 15, 2020, and then quarterly thereafter. |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Comprehensive Income (Loss) 1 $ in millions Foreign Currency Translation Adjustments AFS Securities Pensions, Postretirement and Other DVA Total December 31, 2016 $ (986 ) $ (588 ) $ (474 ) $ (595 ) $ (2,643 ) OCI during the period 219 41 (117 ) (560 ) (417 ) December 31, 2017 (767 ) (547 ) (591 ) (1,155 ) (3,060 ) Cumulative adjustment for accounting change 2 (8 ) (111 ) (124 ) (194 ) (437 ) OCI during the period (114 ) (272 ) 137 1,454 1,205 December 31, 2018 (889 ) (930 ) (578 ) 105 (2,292 ) OCI during the period (8 ) 1,137 (66 ) (1,559 ) (496 ) December 31, 2019 $ (897 ) $ 207 $ (644 ) $ (1,454 ) $ (2,788 ) 1. Amounts are net of tax and noncontrolling interests. 2. The cumulative adjustment for accounting changes is primarily the effect of the adoption of the accounting update Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This adjustment was recorded as of January 1, 2018 to reclassify certain income tax effects related to the enactment of the Tax Act from AOCI to Retained earnings, primarily related to the remeasurement of deferred tax assets and liabilities resulting from the reduction in the corporate income tax rate to 21% . See Note 2 for further information. |
Schedule of Components of Period Changes in OCI | Components of Period Changes in OCI 2019 $ in millions Pre-tax Gain (Loss) Income Tax Benefit (Provision) After-tax Gain (Loss) Non- controlling Interests Net Foreign currency translation adjustments OCI activity $ 6 $ (3 ) $ 3 $ 11 $ (8 ) Reclassified to earnings — — — — — Net OCI $ 6 $ (3 ) $ 3 $ 11 $ (8 ) Change in net unrealized gains (losses) on AFS securities OCI activity $ 1,588 $ (373 ) $ 1,215 $ — $ 1,215 Reclassified to earnings (103 ) 25 (78 ) — (78 ) Net OCI $ 1,485 $ (348 ) $ 1,137 $ — $ 1,137 Pension, postretirement and other OCI activity $ (98 ) $ 25 $ (73 ) $ — $ (73 ) Reclassified to earnings 12 (5 ) 7 — 7 Net OCI $ (86 ) $ 20 $ (66 ) $ — $ (66 ) Change in net DVA OCI activity $ (2,181 ) $ 533 $ (1,648 ) $ (80 ) $ (1,568 ) Reclassified to earnings 11 (2 ) 9 — 9 Net OCI $ (2,170 ) $ 531 $ (1,639 ) $ (80 ) $ (1,559 ) 2018 1 $ in millions Pre-tax Gain (Loss) Income Tax Benefit (Provision) After-tax Gain (Loss) Non- controlling Interests Net Foreign currency translation adjustments OCI activity $ (11 ) $ (79 ) $ (90 ) $ 24 $ (114 ) Reclassified to earnings — — — — — Net OCI $ (11 ) $ (79 ) $ (90 ) $ 24 $ (114 ) Change in net unrealized gains (losses) on AFS securities OCI activity $ (346 ) $ 80 $ (266 ) $ — $ (266 ) Reclassified to earnings (8 ) 2 (6 ) — (6 ) Net OCI $ (354 ) $ 82 $ (272 ) $ — $ (272 ) Pension, postretirement and other OCI activity $ 156 $ (37 ) $ 119 $ — $ 119 Reclassified to earnings 26 (8 ) 18 — 18 Net OCI $ 182 $ (45 ) $ 137 $ — $ 137 Change in net DVA OCI activity $ 1,947 $ (472 ) $ 1,475 $ 63 $ 1,412 Reclassified to earnings 56 (14 ) 42 — 42 Net OCI $ 2,003 $ (486 ) $ 1,517 $ 63 $ 1,454 2017 $ in millions Pre-tax Gain (Loss) Income Tax Benefit (Provision) After-tax Gain (Loss) Non- controlling Interests Net Foreign currency translation adjustments OCI activity $ 64 $ 187 $ 251 $ 32 $ 219 Reclassified to earnings — — — — — Net OCI $ 64 $ 187 $ 251 $ 32 $ 219 Change in net unrealized gains (losses) on AFS securities OCI activity $ 100 $ (36 ) $ 64 $ — $ 64 Reclassified to earnings (35 ) 12 (23 ) — (23 ) Net OCI $ 65 $ (24 ) $ 41 $ — $ 41 Pension, postretirement and other OCI activity $ (193 ) $ 75 $ (118 ) $ — $ (118 ) Reclassified to earnings 2 (1 ) 1 — 1 Net OCI $ (191 ) $ 74 $ (117 ) $ — $ (117 ) Change in net DVA OCI activity $ (922 ) $ 325 $ (597 ) $ (28 ) $ (569 ) Reclassified to earnings 12 (3 ) 9 — 9 Net OCI $ (910 ) $ 322 $ (588 ) $ (28 ) $ (560 ) 1. Exclusive of cumulative adjustments related to the adoption of certain accounting updates in 2018. Refer to the table below and Note 2 for further information. |
Schedule of Cumulative Adjustments to Retained Earnings Related to Adoption of Accounting Updates | Cumulative Adjustments to Retained Earnings Related to Adoption of Accounting Updates $ in millions 2019 Leases $ 63 $ in millions 2018 Revenues from contracts with customers $ (32 ) Derivatives and hedging—targeted improvements to accounting for hedging activities (99 ) Reclassification of certain tax effects from AOCI 443 Other 1 (6 ) Total $ 306 $ in millions 2017 Improvements to employee share-based payment accounting 2 $ (30 ) Intra-entity transfers of assets other than inventory (5 ) Total $ (35 ) 1. Other includes the adoption of accounting updates related to Recognition and Measurement of Financial Assets and Financial Liabilities (other than the provision around presenting unrealized DVA in OCI, which the Firm previously adopted) and Derecognition of Nonfinancial Assets . The impact of these adoptions on Retained earnings was not significant. 2. In addition to the Retained earnings impact, this adoption also resulted in a $45 million increase to Additional paid-in capital. |
Schedule of Cumulative Foreign Currency Translation Adjustments | $ in millions At At Associated with net investments in subsidiaries with a non-U.S. dollar functional currency $ (1,874 ) $ (1,851 ) Hedges, net of tax 977 962 Total $ (897 ) $ (889 ) Carrying value of net investments in non-U.S. dollar functional currency subsidiaries subject to hedges $ 13,440 $ 11,608 |
Interest Income and Interest _2
Interest Income and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interest Income (Expense), Net [Abstract] | |
Schedule of Details of Interest Income and Interest Expense | $ in millions 2019 2018 2017 Interest income Investment securities $ 2,175 $ 1,744 $ 1,334 Loans 4,783 4,249 3,298 Securities purchased under agreements to resell and Securities borrowed 1 3,485 1,976 169 Trading assets, net of Trading liabilities 2,899 2,392 2,029 Customer receivables and Other 2 3,756 3,531 2,167 Total interest income $ 17,098 $ 13,892 $ 8,997 Interest expense Deposits $ 1,885 $ 1,255 $ 187 Borrowings 5,052 5,031 4,285 Securities sold under agreements to repurchase and Securities loaned 3 2,609 1,898 1,237 Customer payables and Other 4 2,858 1,902 (12 ) Total interest expense $ 12,404 $ 10,086 $ 5,697 Net interest $ 4,694 $ 3,806 $ 3,300 1. Includes fees paid on Securities borrowed. 2. Includes interest from Cash and cash equivalents. 3. Includes fees received on Securities loaned. 4. Includes fees received from prime brokerage customers for stock loan transactions entered into to cover customers’ short positions. |
Deferred Compensation Plans a_2
Deferred Compensation Plans and Carried Interest Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |
Schedule of Stock-Based Compensation Expense | These plans include RSUs and PSUs, the details of which are further outlined below. Stock-Based Compensation Expense $ in millions 2019 2018 2017 RSUs $ 1,064 $ 892 $ 951 PSUs 89 28 75 Total 1 $ 1,153 $ 920 $ 1,026 Includes: Retirement-eligible awards 2 $ 111 $ 110 $ 85 1. Net of forfeitures. 2. Relates to stock-based compensation anticipated to be awarded in January of the following year that does not contain a future service requirement. |
Schedule of Tax Benefit Related to Stock-Based Compensation Expense | Tax Benefit Related to Stock-Based Compensation Expense $ in millions 2019 2018 2017 Tax benefit 1 $ 243 $ 193 $ 225 1. Excludes income tax consequences related to employee share-based award conversions. |
Schedule of Unrecognized Compensation Cost Related to Stock-Based Awards Granted | Unrecognized Compensation Cost Related to Stock-Based Awards Granted $ in millions At December 31, 2019 1 To be recognized in: 2020 $ 394 2021 168 Thereafter 30 Total $ 592 1. Amounts do not include forfeitures, cancellations, accelerations, future adjustments to fair value for certain awards, or 2019 performance year compensation awarded in January 2020, which will begin to be amortized in 2020 . |
Schedule of Common Shares Available for Future Awards under Stock-Based Compensation Plans | Common Shares Available for Future Awards under Stock-Based Compensation Plans in millions At Shares 123 |
Schedule of Vested and Unvested RSU Activity | Vested and Unvested RSU Activity 2019 shares in millions Number of Shares Weighted Average Award Date Fair Value RSUs at beginning of period 74 $ 37.59 Awarded 27 43.05 Conversions to common stock (35 ) 28.95 Forfeited (1 ) 43.66 RSUs at end of period 1 65 $ 44.38 Aggregate intrinsic value of RSUs at end of period (dollars in millions) $ 3,294 Weighted average award date fair value RSUs awarded in 2018 $ 55.40 RSUs awarded in 2017 42.98 1. At December 31, 2019 , the weighted average remaining term until delivery for the outstanding RSUs was approximately 1.2 years. |
Schedule of Unvested RSU Activity | Unvested RSU Activity 2019 shares in millions Number of Shares Weighted Average Award Date Fair Value Unvested RSUs at beginning of period 41 $ 40.65 Awarded 27 43.05 Vested (30 ) 37.80 Forfeited (1 ) 43.66 Unvested RSUs at end of period 1 37 $ 44.58 1. Unvested RSUs represent awards where recipients have yet to satisfy either the explicit vesting terms or retirement-eligible requirements. |
Schedule of Fair Value of RSU Activity | Fair Value of RSU Activity $ in millions 2019 2018 2017 Conversions to common stock $ 1,497 $ 1,790 $ 1,333 Vested 1,292 1,504 1,470 |
Schedule of PSU Fair Value on Award Date | PSU Fair Value on Award Date 2019 2018 2017 MS Adjusted ROE $ 43.29 $ 56.84 $ 42.64 Relative MS TSR 48.28 65.81 48.02 |
Schedule of Monte Carlo Simulation Assumptions | Monte Carlo Simulation Assumptions Award Year Risk-Free Interest Rate Expected Stock Price Volatility Correlation Coefficient 2019 2.6 % 26.5 % 0.89 2018 2.2 % 26.8 % 0.89 2017 1.5 % 27.0 % 0.89 |
Schedule of Deferred Cash-Based Compensation Plans | Deferred Cash-Based Compensation Expense $ in millions 2019 2018 2017 Deferred cash-based awards $ 1,233 $ 1,174 $ 1,039 Return on referenced investments 645 (48 ) 499 Total 1 $ 1,878 $ 1,126 $ 1,538 Includes: Retirement-eligible awards 2 $ 195 $ 193 $ 176 1. Net of forfeitures. 2. Relates to deferred cash-based compensation anticipated to be awarded in January of the following year that does not contain a future service requirement. |
Schedule of Carried Interest Compensation Expense | Carried Interest Compensation Expense $ in millions 2019 2018 2017 Expense $ 534 $ 156 $ 197 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Expense (Income) | Components of Net Periodic Benefit Expense (Income) Pension Plans $ in millions 2019 2018 2017 Service cost, benefits earned during the period $ 16 $ 16 $ 16 Interest cost on projected benefit obligation 139 134 146 Expected return on plan assets (114 ) (112 ) (117 ) Net amortization of prior service cost (credit) 1 (1 ) — Net amortization of actuarial loss 13 26 17 Net periodic benefit expense $ 55 $ 63 $ 62 Other Postretirement Plans $ in millions 2019 2018 2017 Service cost, benefits earned during the period $ 1 $ 1 $ 1 Interest cost on projected benefit obligation 2 3 3 Net amortization of prior service credit — (1 ) (16 ) Net periodic benefit expense (income) $ 3 $ 3 $ (12 ) |
Schedule of Rollforward of Pre-tax AOCI | Rollforward of Pre-tax AOCI Pension Plans $ in millions 2019 2018 2017 Beginning balance $ (779 ) $ (947 ) $ (761 ) Net gain (loss) (112 ) 158 (205 ) Prior service credit (cost) — (15 ) 2 Amortization of prior service cost (credit) 1 (1 ) — Amortization of net loss 13 26 17 Changes recognized in OCI (98 ) 168 (186 ) Ending balance $ (877 ) $ (779 ) $ (947 ) Other Postretirement Plans $ in millions 2019 2018 2017 Beginning balance $ 13 $ 1 $ 17 Net gain 13 13 — Amortization of prior service credit — (1 ) (16 ) Changes recognized in OCI 13 12 (16 ) Ending balance $ 26 $ 13 $ 1 |
Schedule of Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense (Income) | Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense (Income) Pension Plans 2019 2018 2017 Discount rate 4.01 % 3.46 % 4.01 % Expected long-term rate of return on plan assets 3.52 % 3.50 % 3.52 % Rate of future compensation increases 3.34 % 3.38 % 3.10 % Other Postretirement Plans 2019 2018 2017 Discount rate 4.07 % 3.44 % 4.01 % |
Schedule of Rollforward of the Benefit Obligation and Fair Value of Plan Assets | Rollforward of the Benefit Obligation and Fair Value of Plan Assets Pension Plans Other Post-retirement Plans $ in millions 2019 2018 2019 2018 Rollforward of benefit obligation Benefit obligation at beginning of year $ 3,563 $ 3,966 $ 71 $ 86 Service cost 16 16 1 1 Interest cost 139 134 2 3 Actuarial loss (gain) 1 497 (340 ) (13 ) (13 ) Plan amendments — 15 — — Plan settlements (9 ) (11 ) — — Benefits paid (191 ) (195 ) (5 ) (6 ) Other 2 11 (22 ) — — Benefit obligation at end of year $ 4,026 $ 3,563 $ 56 $ 71 Rollforward of fair value of plan assets Fair value of plan assets at beginning of year $ 3,203 $ 3,468 $ — $ — Actual return on plan assets 499 (69 ) — — Employer contributions 36 34 5 6 Benefits paid (191 ) (195 ) (5 ) (6 ) Plan settlements (9 ) (11 ) — — Other 2 15 (24 ) — — Fair value of plan assets at end of year $ 3,553 $ 3,203 $ — $ — Funded (unfunded) status $ (473 ) $ (360 ) $ (56 ) $ (71 ) Amounts recognized in the balance sheets Assets $ 98 $ 151 $ — $ — Liabilities (571 ) (511 ) (56 ) (71 ) Net amount recognized $ (473 ) $ (360 ) $ (56 ) $ (71 ) 1. Primarily reflects the impact of year-over-year discount rate fluctuations. 2. Includes foreign currency exchange rate changes. |
Schedule of Accumulated Benefit Obligation | Accumulated Benefit Obligation $ in millions At At Pension plans $ 4,013 $ 3,546 |
Schedule of Pension Plans with Benefit Obligations in Excess of the Fair Value of Plan Assets | Pension Plans with Benefit Obligations in Excess of the Fair Value of Plan Assets $ in millions At At Projected benefit obligation $ 637 $ 575 Accumulated benefit obligation 624 559 Fair value of plan assets 66 64 |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligation | Weighted Average Assumptions Used to Determine Benefit Obligation Pension Plans Other Postretirement Plans At At At At Discount rate 3.08 % 4.01 % 3.11 % 4.07 % Rate of future compensation increase 3.28 % 3.34 % N/A N/A |
Schedule of Assumed Health Care Cost Trend Rates Used to Determine the U.S. Postretirement Benefit Obligation | Assumed Health Care Cost Trend Rates Used to Determine the U.S. Postretirement Benefit Obligation At At Health care cost trend rate assumed for next year Medical 5.48 % 5.66 % Prescription 8.00 % 7.66 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.41 % 4.50 % Year that the rate reaches the ultimate trend rate 2029 2038 |
Schedule of Fair Value of Plan Assets | Fair Value of Plan Assets At December 31, 2019 $ in millions Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents 1 $ 3 $ — $ — $ 3 U.S. government and agency securities: U.S. Treasury securities 2,658 — — 2,658 U.S. agency securities — 292 — 292 Total U.S. government and agency securities 2,658 292 — 2,950 Corporate and other debt—CDO — 9 — 9 Other investments — — 53 53 Other receivables 1 — 48 — 48 Total $ 2,661 $ 349 $ 53 $ 3,063 Assets Measured at NAV Commingled trust funds: Money market 137 Foreign funds: Fixed income 136 Liquidity 30 Targeted cash flow 240 Total $ 543 Liabilities Derivative contracts — (1 ) — (1 ) Other payables 1 — (52 ) — (52 ) Total liabilities $ — $ (53 ) $ — $ (53 ) Fair value of plan assets $ 3,553 At December 31, 2018 $ in millions Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents 1 $ 3 $ — $ — $ 3 U.S. government and agency securities: U.S. Treasury securities 2,197 — — 2,197 U.S. agency securities — 317 — 317 Total U.S. government and agency securities 2,197 317 — 2,514 Corporate and other debt—CDO — 11 — 11 Derivative contracts — 22 — 22 Other investments — — 48 48 Total $ 2,200 $ 350 $ 48 $ 2,598 Assets Measured at NAV Commingled trust funds: Money market 252 Foreign funds: Fixed income 134 Liquidity 12 Targeted cash flow 207 Total $ 605 Fair value of plan assets $ 3,203 1. Cash and cash equivalents, other receivables and other payables are valued at their carrying value, which approximates fair value. |
Schedule of Rollforward of Level 3 Plan Assets | Rollforward of Level 3 Plan Assets $ in millions 2019 2018 Balance at beginning of period $ 48 $ 47 Actual return on plan assets related to assets held at end of period 3 — Purchases, sales, other settlements and issuances, net 2 1 Balance at end of period $ 53 $ 48 |
Schedule of Expected Future Benefit Payments | Expected Future Benefit Payments At December 31, 2019 $ in millions Pension Plans Other Postretirement Plans 2020 149 4 2021 151 4 2022 153 5 2023 159 5 2024 163 5 2025-2029 911 18 |
Schedule of Morgan Stanley 401(k) Plan and Non-U.S. Defined Contribution Pension Plans | Morgan Stanley 401(k) Plan $ in millions 2019 2018 2017 Expense $ 280 $ 272 $ 258 Non-U.S. Defined Contribution Pension Plans $ in millions 2019 2018 2017 Expense $ 121 $ 116 $ 106 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Provision for (Benefit from) Income Taxes | Components of Provision for (Benefit from) Income Taxes $ in millions 2019 2018 2017 Current U.S.: Federal $ 873 $ 686 $ 476 State and local 260 207 125 Non-U.S.: U.K. 166 328 401 Japan 177 268 56 Hong Kong 82 94 48 Other 1 341 318 308 Total $ 1,899 $ 1,901 $ 1,414 Deferred U.S.: Federal $ 185 $ 330 $ 2,656 State and local 46 56 84 Non-U.S.: U.K. 5 54 18 Japan 11 (10 ) (17 ) Hong Kong — (3 ) (2 ) Other 1 (82 ) 22 15 Total $ 165 $ 449 $ 2,754 Provision for income taxes from continuing operations $ 2,064 $ 2,350 $ 4,168 Provision for (benefit from) income taxes from discontinued operations $ — $ (1 ) $ (7 ) 1. Other Non-U.S. tax provisions for 2019, 2018 and 2017 primarily include Brazil, India and Canada. |
Schedule of Reconciliation of the U.S. Federal Statutory Income Tax Rate to the Effective Income Tax Rate | Reconciliation of the U.S. Federal Statutory Income Tax Rate to the Effective Income Tax Rate 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 21.0 % 35.0 % U.S. state and local income taxes, net of U.S. federal income tax benefits 2.2 2.0 1.4 Domestic tax credits (1.5 ) (0.9 ) (1.6 ) Tax exempt income (0.1 ) (0.4 ) (0.1 ) Non-U.S. earnings (0.8 ) 1.3 (5.0 ) Tax Act enactment — — 11.5 Employee share-based awards (1.1 ) (1.5 ) (1.5 ) Other (1.4 ) (0.6 ) 0.4 Effective income tax rate 18.3 % 20.9 % 40.1 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred Tax Assets and Liabilities $ in millions At At Gross deferred tax assets Net operating loss and tax credit carryforwards $ 287 $ 264 Employee compensation and benefit plans 2,075 2,053 Valuation and liability allowances 318 318 Valuation of inventory, investments and receivables 368 242 Total deferred tax assets 3,048 2,877 Deferred tax assets valuation allowance 156 143 Deferred tax assets after valuation allowance $ 2,892 $ 2,734 Gross deferred tax liabilities Fixed assets 983 825 Other 411 236 Total deferred tax liabilities $ 1,394 $ 1,061 Net deferred tax assets $ 1,498 $ 1,673 |
Schedule of Rollforward of Unrecognized Tax Benefits | Rollforward of Unrecognized Tax Benefits $ in millions 2019 2018 2017 Balance at beginning of period $ 1,080 $ 1,594 $ 1,851 Increase based on tax positions related to the current period 57 83 63 Increase based on tax positions related to prior periods 61 34 170 Decrease based on tax positions related to prior periods (419 ) (404 ) (312 ) Decreases related to settlements with taxing authorities (17 ) (139 ) (155 ) Decreases related to lapse of statute of limitations (7 ) (88 ) (23 ) Balance at end of period $ 755 $ 1,080 $ 1,594 Net unrecognized tax benefits 1 $ 549 $ 746 $ 873 1. Represent ending unrecognized tax benefits adjusted for the impact of the federal benefit of state issues, competent authority arrangements and foreign tax credit offsets. If recognized, these net benefits would favorably impact the effective tax rate in future periods. |
Schedule of Interest Expense (Benefit), Net of Federal and State Income Tax Benefits | Interest Expense (Benefit), Net of Federal and State Income Tax Benefits $ in millions 2019 2018 2017 Recognized in income statements $ 8 $ (40 ) $ (3 ) Accrued at end of period 92 91 147 |
Schedule of Earliest Tax Year Subject to Examination in Major Tax Jurisdictions | Earliest Tax Year Subject to Examination in Major Tax Jurisdictions Jurisdiction Tax Year U.S. 2013 New York State and New York City 2007 Hong Kong 2013 U.K. 2011 Japan 2015 |
Segment, Geographic and Reven_2
Segment, Geographic and Revenue Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Information by Business Segment | Selected Financial Information by Business Segment 2019 $ in millions IS WM IM I/E Total Investment banking $ 5,734 $ 509 $ — $ (80 ) $ 6,163 Trading 10,318 734 (8 ) 51 11,095 Investments 325 2 1,213 — 1,540 Commissions and fees 1 2,484 1,726 1 (292 ) 3,919 Asset management 1 413 10,199 2,629 (158 ) 13,083 Other 632 345 (46 ) (6 ) 925 Total non-interest revenues 19,906 13,515 3,789 (485 ) 36,725 Interest income 12,193 5,467 20 (582 ) 17,098 Interest expense 11,713 1,245 46 (600 ) 12,404 Net interest 480 4,222 (26 ) 18 4,694 Net revenues $ 20,386 $ 17,737 $ 3,763 $ (467 ) $ 41,419 Income from continuing operations before income taxes $ 5,490 $ 4,832 $ 985 $ (6 ) $ 11,301 Provision for income taxes 769 1,104 193 (2 ) 2,064 Income from continuing operations 4,721 3,728 792 (4 ) 9,237 Income (loss) from discontinued operations, net of income taxes — — — — — Net income 4,721 3,728 792 (4 ) 9,237 Net income applicable to noncontrolling interests 122 — 73 — 195 Net income applicable to Morgan Stanley $ 4,599 $ 3,728 $ 719 $ (4 ) $ 9,042 2018 $ in millions IS WM IM I/E Total Investment banking $ 6,088 $ 475 $ — $ (81 ) $ 6,482 Trading 11,191 279 25 56 11,551 Investments 182 1 254 — 437 Commissions and fees 1 2,671 1,804 — (285 ) 4,190 Asset management 1 421 10,158 2,468 (149 ) 12,898 Other 535 248 (30 ) (10 ) 743 Total non-interest revenues 21,088 12,965 2,717 (469 ) 36,301 Interest income 9,271 5,498 57 (934 ) 13,892 Interest expense 9,777 1,221 28 (940 ) 10,086 Net interest (506 ) 4,277 29 6 3,806 Net revenues $ 20,582 $ 17,242 $ 2,746 $ (463 ) $ 40,107 Income from continuing operations before income taxes $ 6,260 $ 4,521 $ 464 $ (8 ) $ 11,237 Provision for income taxes 1,230 1,049 73 (2 ) 2,350 Income from continuing operations 5,030 3,472 391 (6 ) 8,887 Income (loss) from discontinued operations, net of income taxes (6 ) — 2 — (4 ) Net income 5,024 3,472 393 (6 ) 8,883 Net income applicable to noncontrolling interests 118 — 17 — 135 Net income applicable to Morgan Stanley $ 4,906 $ 3,472 $ 376 $ (6 ) $ 8,748 2017 $ in millions IS WM IM I/E Total Investment banking $ 5,537 $ 533 $ — $ (67 ) $ 6,003 Trading 10,295 848 (22 ) (5 ) 11,116 Investments 368 3 449 — 820 Commissions and fees 2,433 1,737 — (109 ) 4,061 Asset management 359 9,342 2,196 (100 ) 11,797 Other 630 268 (37 ) (13 ) 848 Total non-interest revenues 19,622 12,731 2,586 (294 ) 34,645 Interest income 5,377 4,591 4 (975 ) 8,997 Interest expense 6,186 486 4 (979 ) 5,697 Net interest (809 ) 4,105 — 4 3,300 Net revenues $ 18,813 $ 16,836 $ 2,586 $ (290 ) $ 37,945 Income from continuing operations before income taxes $ 5,644 $ 4,299 $ 456 $ 4 $ 10,403 Provision for income taxes 1,993 1,974 201 — 4,168 Income from continuing operations 3,651 2,325 255 4 6,235 Income (loss) from discontinued operations, net of income taxes (19 ) — — — (19 ) Net income 3,632 2,325 255 4 6,216 Net income applicable to noncontrolling interests 96 — 9 — 105 Net income applicable to Morgan Stanley $ 3,536 $ 2,325 $ 246 $ 4 $ 6,111 I/E–Intersegment Eliminations 1. Substantially all of the of revenues for these line items are recognized under the Revenues from Contracts with Customers accounting update. |
Schedule of Institutional Securities Revenues | Investment Banking Revenues $ in millions 2019 2018 2017 Institutional Securities—Advisory $ 2,116 $ 2,436 $ 2,077 Institutional Securities—Underwriting 3,618 3,652 3,460 Firm Investment banking revenues from contracts with customers 1 90 % 86 % N/A 1. Represents the approximate amount of Investment banking revenues accounted for under this accounting update. |
Schedule of Trading Revenues by Product Type | Trading Revenues by Product Type $ in millions 2019 2018 2017 Interest rate $ 2,773 $ 2,696 $ 2,091 Foreign exchange 395 914 647 Equity security and index 1 5,246 6,157 6,291 Commodity and other 1,438 1,174 740 Credit 1,243 610 1,347 Total $ 11,095 $ 11,551 $ 11,116 1. Dividend income is included within equity security and index contracts. |
Schedule of Net Unrealized Carried Interest and Reduction of Fees due to Fee Waivers | Investment Management Asset Management Revenues—Reduction of Fees Due to Fee Waivers $ in millions 2019 2018 2017 Fee waivers $ 43 $ 56 $ 86 Investment Management Investments Revenues—Net Cumulative Unrealized Carried Interest $ in millions At At Net cumulative unrealized performance-based fees at risk of reversing $ 774 $ 434 |
Schedule of Income from Continuing Operations before Income Tax Expense (Benefit) | Income from Continuing Operations before Income Tax Expense (Benefit) $ in millions 2019 2018 2017 U.S. $ 9,464 $ 7,804 $ 5,686 Non-U.S. 1 1,837 3,433 4,717 Total $ 11,301 $ 11,237 $ 10,403 1. Non-U.S. income is defined as income generated from operations located outside the U.S. |
Schedule of Net Discrete Tax Provisions (Benefits) by Segment | Net Discrete Tax Provisions (Benefits) by Segment $ in millions IS WM IM Total 2019 Intermittent net discrete tax provision (benefit) $ (317 ) $ (13 ) $ (18 ) $ (348 ) Recurring: Employee share-based awards 1 (83 ) (37 ) (7 ) (127 ) Total $ (400 ) $ (50 ) $ (25 ) $ (475 ) 2018 Intermittent net discrete tax provision (benefit) $ (182 ) $ — $ (21 ) $ (203 ) Recurring: Employee share-based awards 1 (104 ) (50 ) (11 ) (165 ) Total $ (286 ) $ (50 ) $ (32 ) $ (368 ) 2017 Intermittent: Tax Act enactment 2 $ 705 $ 402 $ 94 $ 1,201 Remeasurement of reserves and related interest (168 ) — — (168 ) Other (66 ) 9 (8 ) (65 ) Total intermittent net discrete tax provision (benefit) $ 471 $ 411 $ 86 $ 968 Recurring: Employee share-based awards 1 (93 ) (54 ) (8 ) (155 ) Total $ 378 $ 357 $ 78 $ 813 1. We consider these employee share-based award related provisions (benefits) to be recurring-type (“Recurring”) discrete tax items, as we anticipate some level of conversion activity each year. 2. For further discussion on the Tax Act, see Note 20 . |
Schedule of Net Revenues by Region | Net Revenues by Region $ in millions 2019 2018 2017 Americas $ 30,226 $ 29,301 $ 27,817 EMEA 6,061 6,092 5,714 Asia 5,132 4,714 4,414 Total $ 41,419 $ 40,107 $ 37,945 |
Schedule of Revenue Recognized from Prior Services | Recognized from Prior Services $ in millions 2019 2018 Non-interest revenues $ 2,705 $ 2,821 |
Schedule of Receivables from Contracts with Customers | Receivables from Contracts with Customers $ in millions At At Customer and other receivables $ 2,916 $ 2,308 |
Schedule of Assets by Business Segment | Assets by Business Segment $ in millions At At Institutional Securities $ 691,201 $ 646,427 Wealth Management 197,682 202,392 Investment Management 6,546 4,712 Total 1 $ 895,429 $ 853,531 1. Parent assets have been fully allocated to the business segments. |
Schedule of Total Assets by Region | Total Assets by Region $ in millions At At Americas $ 622,979 $ 576,532 EMEA 185,093 200,194 Asia 87,357 76,805 Total $ 895,429 $ 853,531 |
Parent Company (Tables)
Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Income Statements and Comprehensive Income Statements | Parent Company Only—Condensed Income Statements and Comprehensive Income Statements $ in millions 2019 2018 2017 Revenues Dividends from subsidiaries 1 $ 5,529 $ 4,973 $ 2,567 Trading (54 ) 54 (260 ) Other 80 (5 ) 64 Total non-interest revenues 5,555 5,022 2,371 Interest income 5,121 5,172 3,783 Interest expense 4,661 4,816 4,079 Net interest 460 356 (296 ) Net revenues 6,015 5,378 2,075 Non-interest expenses 300 225 240 Income before income taxes 5,715 5,153 1,835 Provision for (benefit from) income taxes (73 ) 22 (206 ) Net income before undistributed gain of subsidiaries 5,788 5,131 2,041 Undistributed gain of subsidiaries 3,254 3,617 4,070 Net income 9,042 8,748 6,111 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments (8 ) (114 ) 219 Change in net unrealized gains (losses) on available-for-sale securities 1,137 (272 ) 41 Pensions, postretirement and other (66 ) 137 (117 ) Change in net debt valuation adjustment (1,559 ) 1,454 (560 ) Comprehensive income $ 8,546 $ 9,953 $ 5,694 Net income $ 9,042 $ 8,748 $ 6,111 Preferred stock dividends and other 530 526 523 Earnings applicable to Morgan Stanley common shareholders $ 8,512 $ 8,222 $ 5,588 1. In 2019 and 2018, the Parent Company recorded approximately $4 billion and $3 billion , respectively, of dividends from bank subsidiaries. |
Schedule of Condensed Balance Sheets | Parent Company Only—Condensed Balance Sheets $ in millions, except share data At At Assets Cash and cash equivalents: Cash and due from banks $ 9 $ 6 Deposits with bank subsidiaries 8,001 7,476 Trading assets at fair value 5,747 10,039 Investment securities (includes $19,824 and $15,500 at fair value and $4,606 and $ — were pledged to various parties) 37,253 22,588 Securities purchased under agreement to resell with affiliates 10,114 25,535 Advances to subsidiaries: Bank and BHC 27,667 30,954 Non-bank 104,345 97,405 Equity investments in subsidiaries: Bank and BHC 36,093 42,848 Non-bank 43,667 32,418 Other assets 244 1,244 Total assets $ 273,140 $ 270,513 Liabilities Trading liabilities at fair value $ 1,130 $ 276 Securities sold under agreements to repurchase with affiliates 4,631 — Payables to and advances from subsidiaries 35,470 30,861 Other liabilities and accrued expenses 2,153 2,548 Borrowings (includes $20,461 and $18,599 at fair value) 148,207 156,582 Total liabilities 191,591 190,267 Commitments and contingent liabilities (see Note 13) Equity Preferred stock 8,520 8,520 Common stock, $0.01 par value: Shares authorized: 3,500,000,000 ; Shares issued: 2,038,893,979 ; Shares outstanding: 1,593,973,680 and 1,699,828,943 20 20 Additional paid-in capital 23,935 23,794 Retained earnings 70,589 64,175 Employee stock trusts 2,918 2,836 Accumulated other comprehensive income (loss) (2,788 ) (2,292 ) Common stock held in treasury at cost, $0.01 par value ( 444,920,299 and 339,065,036 shares) (18,727 ) (13,971 ) Common stock issued to employee stock trusts (2,918 ) (2,836 ) Total shareholders’ equity 81,549 80,246 Total liabilities and equity $ 273,140 $ 270,513 |
Schedule of Condensed Cash Flow Statements | Parent Company Only—Condensed Cash Flow Statements $ in millions 2019 2018 2017 Net cash provided by (used for) operating activities $ 24,175 $ (1,136 ) $ 3,747 Cash flows from investing activities Proceeds from (payments for): Investment securities: Purchases (22,408 ) (8,155 ) (5,263 ) Proceeds from sales 4,671 1,252 3,620 Proceeds from paydowns and maturities 3,157 3,729 1,038 Securities purchased under agreements to resell with affiliates 15,422 13,057 19,314 Securities sold under agreements to repurchase with affiliates 4,631 (8,753 ) 8,753 Advances to and investments in subsidiaries (9,210 ) 11,841 (35,686 ) Net cash provided by (used for) investing activities (3,737 ) 12,971 (8,224 ) Cash flows from financing activities Proceeds from: Issuance of preferred stock, net of issuance costs 497 — 994 Issuance of Borrowings 8,337 14,918 36,833 Payments for: Borrowings (24,282 ) (21,418 ) (24,668 ) Repurchases of common stock and employee tax withholdings (5,954 ) (5,566 ) (4,292 ) Cash dividends (2,627 ) (2,375 ) (2,085 ) Net change in advances from subsidiaries 4,378 2,122 1,861 Other financing activities 12 — 26 Net cash provided by (used for) financing activities (19,639 ) (12,319 ) 8,669 Effect of exchange rate changes on cash and cash equivalents (271 ) (166 ) 221 Net increase (decrease) in cash and cash equivalents 528 (650 ) 4,413 Cash and cash equivalents, at beginning of period 7,482 8,132 3,719 Cash and cash equivalents, at end of period $ 8,010 $ 7,482 $ 8,132 Cash and cash equivalents: Cash and due from banks $ 9 $ 6 $ 11 Deposits with bank subsidiaries 8,001 7,476 8,120 Restricted cash — — 1 Cash and cash equivalents, at end of period $ 8,010 $ 7,482 $ 8,132 Supplemental Disclosure of Cash Flow Information Cash payments for: Interest $ 4,677 $ 4,798 $ 3,570 Income taxes, net of refunds 1 1,186 437 201 1.Represents total payments, net of refunds, made to various tax authorities and includes taxes paid on behalf of certain subsidiaries that are subsequently settled between the Parent Company and these subsidiaries. The settlements received from subsidiaries were $1.6 billion , $1.6 billion and $1.5 billion for 2019, 2018 and 2017, respectively. |
Schedule of Borrowings with Original Maturities Greater than One Year | Parent Company’s Borrowings with Original Maturities Greater than One Year $ in millions At At Senior $ 137,138 $ 146,492 Subordinated 10,570 10,090 Total $ 147,708 $ 156,582 |
Schedule of Obligations under Guarantee Arrangements | Guarantees of Debt Instruments and Warrants Issued by Subsidiaries $ in millions At At Aggregate balance $ 32,996 $ 24,286 Guarantees under Subsidiary Lease Obligations $ in millions At At Aggregate balance 1 $ 925 $ 1,003 1. Amounts primarily relate to the U.K. |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results (Unaudited) | 2019 Quarter $ in millions, except per share data First Second Third Fourth 1, 2, 3 Total non-interest revenues $ 9,272 $ 9,215 $ 8,814 $ 9,424 Net interest 1,014 1,029 1,218 1,433 Net revenues 10,286 10,244 10,032 10,857 Total non-interest expenses 7,331 7,341 7,322 8,124 Income from continuing operations before income taxes 2,955 2,903 2,710 2,733 Provision for income taxes 487 657 492 428 Income from continuing operations 2,468 2,246 2,218 2,305 Net income 2,468 2,246 2,218 2,305 Net income applicable to noncontrolling interests 39 45 45 66 Net income applicable to Morgan Stanley $ 2,429 $ 2,201 $ 2,173 $ 2,239 Preferred stock dividends and other 93 170 113 154 Earnings applicable to Morgan Stanley common shareholders $ 2,336 $ 2,031 $ 2,060 $ 2,085 Earnings (loss) per basic common share 4 : Income from continuing operations $ 1.41 $ 1.24 $ 1.28 $ 1.33 Earnings per basic common share $ 1.41 $ 1.24 $ 1.28 $ 1.33 Earnings (loss) per diluted common share 4 : Income from continuing operations $ 1.39 $ 1.23 $ 1.27 $ 1.30 Earnings per diluted common share $ 1.39 $ 1.23 $ 1.27 $ 1.30 Dividends declared per common share $ 0.30 $ 0.30 $ 0.35 $ 0.35 Book value per common share $ 42.83 $ 44.13 $ 45.49 $ 45.82 2018 Quarter $ in millions, except per share data First Second Third Fourth 1, 2 Total non-interest revenues $ 10,102 $ 9,704 $ 8,936 $ 7,559 Net interest 975 906 936 989 Net revenues 11,077 10,610 9,872 8,548 Total non-interest expenses 7,657 7,501 7,021 6,691 Income from continuing operations before income taxes 3,420 3,109 2,851 1,857 Provision for income taxes 714 640 696 300 Income from continuing operations 2,706 2,469 2,155 1,557 Income (loss) from discontinued operations (2 ) (2 ) (1 ) 1 Net income 2,704 2,467 2,154 1,558 Net income applicable to noncontrolling interests 36 30 42 27 Net income applicable to Morgan Stanley $ 2,668 $ 2,437 $ 2,112 $ 1,531 Preferred stock dividends 93 170 93 170 Earnings applicable to Morgan Stanley common shareholders $ 2,575 $ 2,267 $ 2,019 $ 1,361 Earnings (loss) per basic common share 4 : Income from continuing operations $ 1.48 $ 1.32 $ 1.19 $ 0.81 Income (loss) from discontinued operations — — — — Earnings per basic common share $ 1.48 $ 1.32 $ 1.19 $ 0.81 Earnings (loss) per diluted common share 4 : Income from continuing operations $ 1.46 $ 1.30 $ 1.17 $ 0.80 Income (loss) from discontinued operations (0.01 ) — — — Earnings per diluted common share $ 1.45 $ 1.30 $ 1.17 $ 0.80 Dividends declared per common share $ 0.25 $ 0.25 $ 0.30 $ 0.30 Book value per common share $ 39.19 $ 40.34 $ 40.67 $ 42.20 1. The fourth quarters of 2019 and 2018 included intermittent net discrete tax benefits of $158 million and $111 million , respectively, primarily associated with remeasurement of reserves and related interest as a result of new information pertaining to the resolution of multi-jurisdiction tax examinations. 2. Total non-interest revenues includes impairments of the Investment Management business segment’s interests in two distinct equity method investments in third-party asset managers of $41 million in 2019 and $46 million in 2018 . 3. The fourth quarter of 2019 included specific severance-related costs of approximately $172 million , which are included in Compensation and benefits expenses in the Income statement. These costs were recorded in the business segments approximately as follows: Institutional Securities $124 million , Wealth Management $37 million and Investment Management $11 million . 4. The sum of the quarters’ earnings per common share may not equal the annual amounts due to the averaging effect of the number of shares and share equivalents throughout the year. |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 01, 2017 | ||
Retained Earnings | |||||
Premises, Equipment and Software Costs | |||||
Cumulative adjustments for accounting changes | [1] | $ 63 | $ 306 | $ (35) | |
Accounting Standards Update 2018-11 | Other Assets | |||||
Premises, Equipment and Software Costs | |||||
Effect of adopting the new accounting standard on balance sheet | (4,000) | ||||
Accounting Standards Update 2018-11 | Other Liabilities | |||||
Premises, Equipment and Software Costs | |||||
Effect of adopting the new accounting standard on balance sheet | 4,000 | ||||
Accounting Standards Update 2018-11 | Retained Earnings | |||||
Premises, Equipment and Software Costs | |||||
Cumulative adjustments for accounting changes | $ 63 | ||||
Minimum | |||||
Premises, Equipment and Software Costs | |||||
Effectiveness to benchmark interest rate (as a percent) | 80.00% | ||||
Maximum | |||||
Premises, Equipment and Software Costs | |||||
Effectiveness to benchmark interest rate (as a percent) | 125.00% | ||||
Buildings | |||||
Premises, Equipment and Software Costs | |||||
Estimated useful lives | 39 years | ||||
Leasehold improvements—Building | Maximum | |||||
Premises, Equipment and Software Costs | |||||
Estimated useful lives | 25 years | ||||
Leasehold improvements—Other | Maximum | |||||
Premises, Equipment and Software Costs | |||||
Estimated useful lives | 15 years | ||||
Furniture and fixtures | |||||
Premises, Equipment and Software Costs | |||||
Estimated useful lives | 7 years | ||||
Computer and communications equipment | Minimum | |||||
Premises, Equipment and Software Costs | |||||
Estimated useful lives | 3 years | ||||
Computer and communications equipment | Maximum | |||||
Premises, Equipment and Software Costs | |||||
Estimated useful lives | 9 years | ||||
Power generation assets | Minimum | |||||
Premises, Equipment and Software Costs | |||||
Estimated useful lives | 15 years | ||||
Power generation assets | Maximum | |||||
Premises, Equipment and Software Costs | |||||
Estimated useful lives | 29 years | ||||
Software costs | Minimum | |||||
Premises, Equipment and Software Costs | |||||
Estimated useful lives | 2 years | ||||
Software costs | Maximum | |||||
Premises, Equipment and Software Costs | |||||
Estimated useful lives | 10 years | ||||
[1] | See Notes 2 and 16 for further information regarding cumulative adjustments for accounting changes. |
Fair Values - Assets and Liabil
Fair Values - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets at fair value | ||
Derivative and other contracts | $ 32,001 | $ 29,173 |
Investments | 106,356 | 91,026 |
Total trading assets | 297,110 | 266,299 |
Investment securities—AFS | 62,223 | 61,061 |
Securities purchased under agreements to resell | 4 | 0 |
Liabilities at fair value | ||
Deposits | 2,099 | 442 |
Derivative and other contracts | 28,434 | 27,258 |
Securities sold under agreements to repurchase | 733 | 812 |
Other secured financings | 7,809 | 5,245 |
Borrowings | 64,461 | 51,184 |
U.S. Treasury and agency securities | ||
Assets at fair value | ||
Investment securities—AFS | 53,452 | 55,905 |
State and municipal securities | ||
Assets at fair value | ||
Investment securities—AFS | 503 | 202 |
Corporate and other debt | ||
Assets at fair value | ||
Investment securities—AFS | 8,771 | 5,156 |
Recurring | ||
Assets at fair value | ||
Netting | (47,804) | (44,175) |
Liabilities at fair value | ||
Netting | (42,531) | (32,944) |
Recurring | Interest rate | ||
Liabilities at fair value | ||
Borrowings | 27,298 | 22,343 |
Recurring | Credit | ||
Liabilities at fair value | ||
Borrowings | 1,246 | 856 |
Recurring | Foreign exchange | ||
Liabilities at fair value | ||
Borrowings | 1,202 | 756 |
Recurring | Equity | ||
Liabilities at fair value | ||
Borrowings | 30,214 | 24,494 |
Recurring | Commodity and other | ||
Liabilities at fair value | ||
Borrowings | 4,501 | 2,735 |
Recurring | Loans and lending commitments | ||
Assets at fair value | ||
Trading assets | 11,326 | 10,925 |
Recurring | Total | ||
Assets at fair value | ||
Derivative and other contracts | 32,001 | 29,173 |
Netting | (287,538) | (259,412) |
Investments | 1,591 | 1,462 |
Physical commodities | 1,907 | 536 |
Total trading assets | 293,589 | 263,717 |
Investment securities—AFS | 62,223 | 61,061 |
Securities purchased under agreements to resell | 4 | |
Intangible assets | 5 | |
Total assets at fair value | 355,816 | 324,783 |
Liabilities at fair value | ||
Deposits | 2,099 | 442 |
Trading liabilities | 133,356 | 126,747 |
Derivative and other contracts | 28,434 | 27,258 |
Netting | (282,265) | (248,181) |
Securities sold under agreements to repurchase | 733 | 812 |
Other secured financings | 7,809 | 5,245 |
Borrowings | 64,461 | 51,184 |
Total liabilities at fair value | 208,458 | 184,430 |
Recurring | Total | Interest rate | ||
Assets at fair value | ||
Derivative and other contracts | 185,481 | 158,865 |
Liabilities at fair value | ||
Derivative and other contracts | 172,631 | 146,100 |
Recurring | Total | Credit | ||
Assets at fair value | ||
Derivative and other contracts | 7,312 | 6,128 |
Liabilities at fair value | ||
Derivative and other contracts | 7,921 | 6,153 |
Recurring | Total | Foreign exchange | ||
Assets at fair value | ||
Derivative and other contracts | 64,420 | 63,246 |
Liabilities at fair value | ||
Derivative and other contracts | 67,655 | 63,506 |
Recurring | Total | Equity | ||
Assets at fair value | ||
Derivative and other contracts | 51,068 | 47,874 |
Liabilities at fair value | ||
Derivative and other contracts | 52,868 | 50,640 |
Recurring | Total | Commodity and other | ||
Assets at fair value | ||
Derivative and other contracts | 11,258 | 12,472 |
Liabilities at fair value | ||
Derivative and other contracts | 9,624 | 9,040 |
Recurring | Total | U.S. Treasury and agency securities | ||
Liabilities at fair value | ||
Trading liabilities | 11,225 | 11,815 |
Recurring | Total | Other sovereign government obligations | ||
Liabilities at fair value | ||
Trading liabilities | 23,170 | 22,845 |
Recurring | Total | Corporate and other debt | ||
Liabilities at fair value | ||
Trading liabilities | 7,410 | 8,551 |
Recurring | Total | Corporate equities | ||
Liabilities at fair value | ||
Trading liabilities | 63,117 | 56,278 |
Recurring | Total | U.S. Treasury and agency securities | ||
Assets at fair value | ||
Trading assets | 65,880 | 68,415 |
Recurring | Total | Other sovereign government obligations | ||
Assets at fair value | ||
Trading assets | 27,754 | 33,941 |
Recurring | Total | State and municipal securities | ||
Assets at fair value | ||
Trading assets | 2,791 | 3,309 |
Recurring | Total | MABS | ||
Assets at fair value | ||
Trading assets | 2,128 | 2,508 |
Recurring | Total | Loans and lending commitments | ||
Assets at fair value | ||
Trading assets | 11,326 | 10,925 |
Recurring | Total | Corporate and other debt | ||
Assets at fair value | ||
Trading assets | 23,520 | 19,205 |
Recurring | Total | Corporate equities | ||
Assets at fair value | ||
Equity securities | 124,691 | 94,243 |
Recurring | Level 1 | ||
Assets at fair value | ||
Derivative and other contracts | 784 | 923 |
Netting | (2,794) | (4,151) |
Investments | 481 | 412 |
Physical commodities | 0 | 0 |
Total trading assets | 185,475 | 162,123 |
Investment securities—AFS | 32,902 | 36,399 |
Securities purchased under agreements to resell | 0 | |
Intangible assets | 0 | |
Total assets at fair value | 218,377 | 198,522 |
Liabilities at fair value | ||
Deposits | 0 | 0 |
Trading liabilities | 96,780 | 89,814 |
Derivative and other contracts | 750 | 1,087 |
Netting | (2,794) | (4,151) |
Securities sold under agreements to repurchase | 0 | 0 |
Other secured financings | 0 | 0 |
Borrowings | 0 | 0 |
Total liabilities at fair value | 96,780 | 89,814 |
Recurring | Level 1 | Interest rate | ||
Assets at fair value | ||
Derivative and other contracts | 1,265 | 2,793 |
Liabilities at fair value | ||
Derivative and other contracts | 1,144 | 2,927 |
Recurring | Level 1 | Credit | ||
Assets at fair value | ||
Derivative and other contracts | 0 | 0 |
Liabilities at fair value | ||
Derivative and other contracts | 0 | 0 |
Recurring | Level 1 | Foreign exchange | ||
Assets at fair value | ||
Derivative and other contracts | 15 | 62 |
Liabilities at fair value | ||
Derivative and other contracts | 6 | 41 |
Recurring | Level 1 | Equity | ||
Assets at fair value | ||
Derivative and other contracts | 1,219 | 1,256 |
Liabilities at fair value | ||
Derivative and other contracts | 1,200 | 1,042 |
Recurring | Level 1 | Commodity and other | ||
Assets at fair value | ||
Derivative and other contracts | 1,079 | 963 |
Liabilities at fair value | ||
Derivative and other contracts | 1,194 | 1,228 |
Recurring | Level 1 | U.S. Treasury and agency securities | ||
Liabilities at fair value | ||
Trading liabilities | 11,191 | 11,272 |
Recurring | Level 1 | Other sovereign government obligations | ||
Liabilities at fair value | ||
Trading liabilities | 21,837 | 21,391 |
Recurring | Level 1 | Corporate and other debt | ||
Liabilities at fair value | ||
Trading liabilities | 0 | 0 |
Recurring | Level 1 | Corporate equities | ||
Liabilities at fair value | ||
Trading liabilities | 63,002 | 56,064 |
Recurring | Level 1 | U.S. Treasury and agency securities | ||
Assets at fair value | ||
Trading assets | 36,866 | 38,767 |
Recurring | Level 1 | Other sovereign government obligations | ||
Assets at fair value | ||
Trading assets | 23,402 | 28,395 |
Recurring | Level 1 | State and municipal securities | ||
Assets at fair value | ||
Trading assets | 0 | 0 |
Recurring | Level 1 | MABS | ||
Assets at fair value | ||
Trading assets | 0 | 0 |
Recurring | Level 1 | Loans and lending commitments | ||
Assets at fair value | ||
Trading assets | 0 | 0 |
Recurring | Level 1 | Corporate and other debt | ||
Assets at fair value | ||
Trading assets | 0 | 0 |
Recurring | Level 1 | Corporate equities | ||
Assets at fair value | ||
Equity securities | 123,942 | 93,626 |
Recurring | Level 2 | ||
Assets at fair value | ||
Derivative and other contracts | 74,130 | 67,680 |
Netting | (235,947) | (210,190) |
Investments | 252 | 293 |
Physical commodities | 1,907 | 536 |
Total trading assets | 143,137 | 131,653 |
Investment securities—AFS | 29,321 | 24,662 |
Securities purchased under agreements to resell | 4 | |
Intangible assets | 5 | |
Total assets at fair value | 172,462 | 156,320 |
Liabilities at fair value | ||
Deposits | 1,920 | 415 |
Trading liabilities | 74,977 | 66,416 |
Derivative and other contracts | 66,122 | 55,670 |
Netting | (235,947) | (210,190) |
Securities sold under agreements to repurchase | 733 | 812 |
Other secured financings | 7,700 | 5,037 |
Borrowings | 60,373 | 47,378 |
Total liabilities at fair value | 145,703 | 120,058 |
Recurring | Level 2 | Interest rate | ||
Assets at fair value | ||
Derivative and other contracts | 182,977 | 155,027 |
Liabilities at fair value | ||
Derivative and other contracts | 171,025 | 142,746 |
Recurring | Level 2 | Credit | ||
Assets at fair value | ||
Derivative and other contracts | 6,658 | 5,707 |
Liabilities at fair value | ||
Derivative and other contracts | 7,391 | 5,772 |
Recurring | Level 2 | Foreign exchange | ||
Assets at fair value | ||
Derivative and other contracts | 64,260 | 63,023 |
Liabilities at fair value | ||
Derivative and other contracts | 67,473 | 63,379 |
Recurring | Level 2 | Equity | ||
Assets at fair value | ||
Derivative and other contracts | 48,927 | 45,596 |
Liabilities at fair value | ||
Derivative and other contracts | 49,062 | 47,091 |
Recurring | Level 2 | Commodity and other | ||
Assets at fair value | ||
Derivative and other contracts | 7,255 | 8,517 |
Liabilities at fair value | ||
Derivative and other contracts | 7,118 | 6,872 |
Recurring | Level 2 | U.S. Treasury and agency securities | ||
Liabilities at fair value | ||
Trading liabilities | 34 | 543 |
Recurring | Level 2 | Other sovereign government obligations | ||
Liabilities at fair value | ||
Trading liabilities | 1,332 | 1,454 |
Recurring | Level 2 | Corporate and other debt | ||
Liabilities at fair value | ||
Trading liabilities | 7,410 | 8,550 |
Recurring | Level 2 | Corporate equities | ||
Liabilities at fair value | ||
Trading liabilities | 79 | 199 |
Recurring | Level 2 | U.S. Treasury and agency securities | ||
Assets at fair value | ||
Trading assets | 28,992 | 29,594 |
Recurring | Level 2 | Other sovereign government obligations | ||
Assets at fair value | ||
Trading assets | 4,347 | 5,529 |
Recurring | Level 2 | State and municipal securities | ||
Assets at fair value | ||
Trading assets | 2,790 | 3,161 |
Recurring | Level 2 | MABS | ||
Assets at fair value | ||
Trading assets | 1,690 | 2,154 |
Recurring | Level 2 | Loans and lending commitments | ||
Assets at fair value | ||
Trading assets | 6,253 | 4,055 |
Recurring | Level 2 | Corporate and other debt | ||
Assets at fair value | ||
Trading assets | 22,124 | 18,129 |
Recurring | Level 2 | Corporate equities | ||
Assets at fair value | ||
Equity securities | 652 | 522 |
Recurring | Level 3 | ||
Assets at fair value | ||
Equity securities | 97 | 95 |
Derivative and other contracts | 4,891 | 4,745 |
Netting | (993) | (896) |
Investments | 858 | 757 |
Physical commodities | 0 | 0 |
Total trading assets | 12,781 | 14,116 |
Investment securities—AFS | 0 | 0 |
Securities purchased under agreements to resell | 0 | |
Intangible assets | 0 | |
Total assets at fair value | 12,781 | 14,116 |
Liabilities at fair value | ||
Deposits | 179 | 27 |
Trading liabilities | 4,130 | 3,461 |
Derivative and other contracts | 4,093 | 3,445 |
Netting | (993) | (896) |
Securities sold under agreements to repurchase | 0 | 0 |
Other secured financings | 109 | 208 |
Borrowings | 4,088 | 3,806 |
Total liabilities at fair value | 8,506 | 7,502 |
Recurring | Level 3 | Interest rate | ||
Assets at fair value | ||
Derivative and other contracts | 1,239 | 1,045 |
Liabilities at fair value | ||
Derivative and other contracts | 462 | 427 |
Recurring | Level 3 | Credit | ||
Assets at fair value | ||
Derivative and other contracts | 654 | 421 |
Liabilities at fair value | ||
Derivative and other contracts | 530 | 381 |
Recurring | Level 3 | Foreign exchange | ||
Assets at fair value | ||
Derivative and other contracts | 145 | 161 |
Liabilities at fair value | ||
Derivative and other contracts | 176 | 86 |
Recurring | Level 3 | Equity | ||
Assets at fair value | ||
Derivative and other contracts | 922 | 1,022 |
Liabilities at fair value | ||
Derivative and other contracts | 2,606 | 2,507 |
Recurring | Level 3 | Commodity and other | ||
Assets at fair value | ||
Derivative and other contracts | 2,924 | 2,992 |
Liabilities at fair value | ||
Derivative and other contracts | 1,312 | 940 |
Recurring | Level 3 | U.S. Treasury and agency securities | ||
Liabilities at fair value | ||
Trading liabilities | 0 | 0 |
Recurring | Level 3 | Other sovereign government obligations | ||
Liabilities at fair value | ||
Trading liabilities | 1 | 0 |
Recurring | Level 3 | Corporate and other debt | ||
Liabilities at fair value | ||
Trading liabilities | 0 | 1 |
Recurring | Level 3 | Corporate equities | ||
Liabilities at fair value | ||
Trading liabilities | 36 | 15 |
Recurring | Level 3 | U.S. Treasury and agency securities | ||
Assets at fair value | ||
Trading assets | 22 | 54 |
Recurring | Level 3 | Other sovereign government obligations | ||
Assets at fair value | ||
Trading assets | 5 | 17 |
Recurring | Level 3 | State and municipal securities | ||
Assets at fair value | ||
Trading assets | 1 | 148 |
Recurring | Level 3 | MABS | ||
Assets at fair value | ||
Trading assets | 438 | 354 |
Recurring | Level 3 | Loans and lending commitments | ||
Assets at fair value | ||
Trading assets | 5,073 | 6,870 |
Recurring | Level 3 | Corporate and other debt | ||
Assets at fair value | ||
Trading assets | 1,396 | 1,076 |
Recurring | Level 3 | Corporate equities | ||
Assets at fair value | ||
Equity securities | $ 97 | $ 95 |
Fair Values - Breakdown of Loan
Fair Values - Breakdown of Loans and Lending Commitments at Fair Value and Unsettled Fair Value of Futures Contracts (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and lending commitments | ||
Fair Value Measurements | ||
Trading assets | $ 11,326 | $ 10,925 |
Futures Contracts | Accounts Receivable and Other Receivables, Net | ||
Fair Value Measurements | ||
Derivative assets, unsettled fair value | 365 | 615 |
Corporate | Loans and lending commitments | ||
Fair Value Measurements | ||
Trading assets | 8,036 | 9,171 |
Residential real estate | Loans and lending commitments | ||
Fair Value Measurements | ||
Trading assets | 1,192 | 1,153 |
Commercial real estate | Loans and lending commitments | ||
Fair Value Measurements | ||
Trading assets | $ 2,098 | $ 601 |
Fair Values - Activity of Level
Fair Values - Activity of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity | |||
Liabilities at Fair Value | |||
Transfers from Level 3 to Level 2 | $ 2,400 | ||
Level 3 | |||
Liabilities at Fair Value | |||
Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA | $ 182 | (184) | $ 76 |
Level 3 | Deposits | |||
Liabilities at Fair Value | |||
Beginning balance | 27 | 47 | 42 |
Realized and unrealized losses (gains) | 20 | (1) | 3 |
Issuances | 101 | 9 | 12 |
Settlements | (15) | (2) | (3) |
Net transfers | 46 | (26) | (7) |
Ending balance | 179 | 27 | 47 |
Unrealized losses (gains) | 20 | (1) | 3 |
Level 3 | Nonderivative trading liabilities | |||
Liabilities at Fair Value | |||
Beginning balance | 16 | 25 | 71 |
Realized and unrealized losses (gains) | (21) | (6) | (1) |
Purchases | (65) | (18) | (139) |
Sales | 38 | 9 | 20 |
Net transfers | 69 | 6 | 74 |
Ending balance | 37 | 16 | 25 |
Unrealized losses (gains) | (21) | (7) | 0 |
Level 3 | Securities sold under agreements to repurchase | |||
Liabilities at Fair Value | |||
Beginning balance | 0 | 150 | 149 |
Issuances | 0 | 0 | 1 |
Net transfers | 0 | (150) | 0 |
Ending balance | 0 | 0 | 150 |
Unrealized losses (gains) | 0 | 0 | 0 |
Level 3 | Other secured financings | |||
Liabilities at Fair Value | |||
Beginning balance | 208 | 239 | 434 |
Realized and unrealized losses (gains) | 5 | (39) | 35 |
Issuances | 0 | 8 | 64 |
Settlements | (8) | (17) | (251) |
Net transfers | (96) | 17 | (43) |
Ending balance | 109 | 208 | 239 |
Unrealized losses (gains) | 5 | (39) | 28 |
Level 3 | Borrowings | |||
Liabilities at Fair Value | |||
Beginning balance | 3,806 | 2,984 | 2,014 |
Realized and unrealized losses (gains) | 728 | (385) | 196 |
Issuances | 1,181 | 1,554 | 1,968 |
Settlements | (950) | (274) | (424) |
Net transfers | (677) | (73) | (770) |
Ending balance | 4,088 | 3,806 | 2,984 |
Unrealized losses (gains) | 600 | (379) | 173 |
Level 3 | Interest rate | |||
Assets at Fair value | |||
Beginning balance | 618 | 1,218 | 420 |
Realized and unrealized gains (losses) | 17 | 111 | 322 |
Purchases | 98 | 63 | 29 |
Issuances | (16) | (19) | (18) |
Settlements | 1 | (172) | 608 |
Net transfers | 59 | (583) | (143) |
Ending balance | 777 | 618 | 1,218 |
Unrealized gains (losses) | 87 | 140 | 341 |
Level 3 | Credit | |||
Assets at Fair value | |||
Beginning balance | 40 | 41 | (373) |
Realized and unrealized gains (losses) | (24) | 33 | (43) |
Purchases | 144 | 13 | 0 |
Issuances | (190) | (95) | (1) |
Settlements | 111 | 56 | 455 |
Net transfers | 43 | (8) | 3 |
Ending balance | 124 | 40 | 41 |
Unrealized gains (losses) | (17) | 23 | (18) |
Level 3 | Foreign exchange | |||
Assets at Fair value | |||
Beginning balance | 75 | (112) | (43) |
Realized and unrealized gains (losses) | (295) | 179 | (108) |
Purchases | 2 | 3 | 0 |
Issuances | 0 | (1) | (1) |
Settlements | 7 | 2 | 31 |
Net transfers | 180 | 4 | 9 |
Ending balance | (31) | 75 | (112) |
Unrealized gains (losses) | (187) | 118 | (89) |
Level 3 | Equity | |||
Assets at Fair value | |||
Beginning balance | (1,485) | 1,208 | 184 |
Realized and unrealized gains (losses) | (260) | 305 | 136 |
Purchases | 155 | 122 | 988 |
Issuances | (643) | (1,179) | (524) |
Settlements | 242 | 314 | 396 |
Net transfers | 307 | (2,255) | 28 |
Ending balance | (1,684) | (1,485) | 1,208 |
Unrealized gains (losses) | (194) | 211 | 159 |
Level 3 | Commodity and other | |||
Assets at Fair value | |||
Beginning balance | 2,052 | 1,446 | 1,600 |
Realized and unrealized gains (losses) | 73 | 500 | 515 |
Purchases | 152 | 34 | 24 |
Issuances | (92) | (18) | (57) |
Settlements | (611) | (81) | (343) |
Net transfers | 38 | 171 | (293) |
Ending balance | 1,612 | 2,052 | 1,446 |
Unrealized gains (losses) | (113) | 272 | 20 |
Level 3 | U.S. Treasury and agency securities | |||
Assets at Fair value | |||
Beginning balance | 54 | 0 | 74 |
Realized and unrealized gains (losses) | 4 | 1 | (1) |
Purchases | 17 | 53 | 0 |
Sales | (54) | 0 | (240) |
Net transfers | 1 | 0 | 167 |
Ending balance | 22 | 54 | 0 |
Unrealized gains (losses) | 4 | 1 | 0 |
Level 3 | Other sovereign government obligations | |||
Assets at Fair value | |||
Beginning balance | 17 | 1 | 6 |
Realized and unrealized gains (losses) | (3) | 0 | 0 |
Purchases | 7 | 41 | 0 |
Sales | (6) | (26) | (5) |
Net transfers | (10) | 1 | 0 |
Ending balance | 5 | 17 | 1 |
Unrealized gains (losses) | (3) | 0 | 0 |
Level 3 | State and municipal securities | |||
Assets at Fair value | |||
Beginning balance | 148 | 8 | 250 |
Realized and unrealized gains (losses) | 0 | 0 | 3 |
Purchases | 0 | 147 | 6 |
Sales | (147) | (9) | (83) |
Net transfers | 0 | 2 | (168) |
Ending balance | 1 | 148 | 8 |
Unrealized gains (losses) | 0 | 0 | 0 |
Level 3 | MABS | |||
Assets at Fair value | |||
Beginning balance | 354 | 423 | 217 |
Realized and unrealized gains (losses) | (16) | 82 | 47 |
Purchases | 132 | 177 | 289 |
Sales | (175) | (338) | (158) |
Settlements | (44) | (17) | (37) |
Net transfers | 187 | 27 | 65 |
Ending balance | 438 | 354 | 423 |
Unrealized gains (losses) | (57) | (9) | (7) |
Level 3 | Loans and lending commitments | |||
Assets at Fair value | |||
Beginning balance | 6,870 | 5,945 | 5,122 |
Realized and unrealized gains (losses) | 38 | (100) | 182 |
Purchases | 2,337 | 5,746 | 3,616 |
Sales | (1,268) | (2,529) | (1,561) |
Settlements | (2,291) | (2,281) | (1,463) |
Net transfers | (613) | 89 | 49 |
Ending balance | 5,073 | 6,870 | 5,945 |
Unrealized gains (losses) | (9) | (137) | 131 |
Level 3 | Corporate and other debt | |||
Assets at Fair value | |||
Beginning balance | 1,076 | 701 | 475 |
Realized and unrealized gains (losses) | 418 | 106 | 82 |
Purchases | 650 | 734 | 487 |
Sales | (729) | (251) | (420) |
Settlements | (7) | (11) | (9) |
Net transfers | (12) | (203) | 86 |
Ending balance | 1,396 | 1,076 | 701 |
Unrealized gains (losses) | 361 | 70 | 23 |
Level 3 | Corporate equities | |||
Assets at Fair value | |||
Beginning balance | 95 | 166 | 446 |
Realized and unrealized gains (losses) | (8) | 29 | (54) |
Purchases | 32 | 13 | 173 |
Sales | (271) | (161) | (632) |
Net transfers | 249 | 48 | 233 |
Ending balance | 97 | 95 | 166 |
Unrealized gains (losses) | 1 | 17 | (6) |
Level 3 | Investments | |||
Assets at Fair value | |||
Beginning balance | 757 | 1,020 | 958 |
Realized and unrealized gains (losses) | 78 | (25) | 96 |
Purchases | 40 | 149 | 102 |
Sales | (41) | (212) | (57) |
Settlements | 0 | 0 | (78) |
Net transfers | 24 | (175) | (1) |
Ending balance | 858 | 757 | 1,020 |
Unrealized gains (losses) | $ 67 | $ (27) | $ 88 |
Fair Values - Valuation Techniq
Fair Values - Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements (Details) $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets | $ 32,001 | $ 29,173 |
Deposits | 2,099 | 442 |
Other secured financings | 14,698 | 9,466 |
Borrowings | 64,461 | 51,184 |
Recurring | Loans and lending commitments | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets | 11,326 | 10,925 |
Recurring | Level 3 | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Corporate equities | 97 | 95 |
Investments | 858 | 757 |
Derivative assets | 4,891 | 4,745 |
Deposits | 179 | 27 |
Other secured financings | 109 | 208 |
Borrowings | $ 4,088 | $ 3,806 |
Recurring | Level 3 | Comparable Pricing | Equity Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Corporate equities, measurement input value | 1 | 1 |
Recurring | Level 3 | U.S. Treasury and agency securities | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets | $ 22 | $ 54 |
Recurring | Level 3 | State and municipal securities | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets | 1 | 148 |
Recurring | Level 3 | MABS | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets | 438 | 354 |
Recurring | Level 3 | Loans and lending commitments | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets | 5,073 | 6,870 |
Recurring | Level 3 | Corporate and other debt | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets | $ 1,396 | $ 1,076 |
Recurring | Level 3 | Corporate and other debt | Discounted Cash Flow | Recovery Rate | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.35 | 0.20 |
Recurring | Level 3 | Corporate and other debt | Option Model | At the Money Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.21 | |
Recurring | Level 3 | Interest rate | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets | $ 777 | $ 618 |
Recurring | Level 3 | Interest rate | Option Model | IR Curve | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.01 | 0.01 |
Recurring | Level 3 | Credit | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets | $ 124 | $ 40 |
Recurring | Level 3 | Foreign exchange | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets | (31) | 75 |
Recurring | Level 3 | Equity | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets | (1,684) | (1,485) |
Recurring | Level 3 | Commodity and other | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets | 1,612 | 2,052 |
Nonrecurring | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Loans | 3,043 | 3,687 |
Nonrecurring | Level 3 | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Loans | $ 1,500 | $ 1,380 |
Weighted Average | Recurring | Level 3 | Comparable Pricing | Equity Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Investments, measurement input value | 0.99 | 0.96 |
Weighted Average | Recurring | Level 3 | Discounted Cash Flow | Exit Multiple | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Investments, measurement input value | 11 | 10 |
Weighted Average | Recurring | Level 3 | Discounted Cash Flow | Funding Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Other secured financings, measurement input value | 0.0117 | 0.0148 |
Weighted Average | Recurring | Level 3 | Discounted Cash Flow | WACC | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Investments, measurement input value | 0.15 | 0.10 |
Weighted Average | Recurring | Level 3 | Market Approach | EBITDA Multiple | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Investments, measurement input value | 11 | 12 |
Weighted Average | Recurring | Level 3 | Option Model | At the Money Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Deposits, measurement input value | 0.20 | |
Other secured financings, measurement input value | 0.25 | |
Borrowings, measurement input value | 0.21 | 0.22 |
Weighted Average | Recurring | Level 3 | Option Model | Equity Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | 0.78 | 0.85 |
Weighted Average | Recurring | Level 3 | Option Model | Equity - FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | (0.25) | (0.27) |
Weighted Average | Recurring | Level 3 | Option Model | Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | 0 | 0 |
Weighted Average | Recurring | Level 3 | U.S. Treasury and agency securities | Comparable Pricing | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 1 | |
Weighted Average | Recurring | Level 3 | State and municipal securities | Comparable Pricing | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.96 | |
Weighted Average | Recurring | Level 3 | MABS | Comparable Pricing | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.47 | 0.38 |
Weighted Average | Recurring | Level 3 | Loans and lending commitments | Comparable Pricing | Loan Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.93 | 0.95 |
Weighted Average | Recurring | Level 3 | Loans and lending commitments | Margin Loan Model | Credit Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.0019 | 0.0036 |
Weighted Average | Recurring | Level 3 | Loans and lending commitments | Margin Loan Model | Discount Rate | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.02 | 0.02 |
Weighted Average | Recurring | Level 3 | Loans and lending commitments | Margin Loan Model | Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.28 | 0.28 |
Weighted Average | Recurring | Level 3 | Corporate and other debt | Comparable Pricing | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.84 | 0.72 |
Weighted Average | Recurring | Level 3 | Corporate and other debt | Discounted Cash Flow | Discount Rate | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.16 | |
Weighted Average | Recurring | Level 3 | Corporate and other debt | Option Model | At the Money Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.50 | |
Weighted Average | Recurring | Level 3 | Credit | Correlation Model | Credit Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.36 | 0.44 |
Weighted Average | Recurring | Level 3 | Credit | Credit Default Swap Model | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.45 | 0.26 |
Weighted Average | Recurring | Level 3 | Credit | Credit Default Swap Model | Cash-Synthetic Basis | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.06 | 0.09 |
Weighted Average | Recurring | Level 3 | Credit | Credit Default Swap Model | Credit Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.0081 | 0.0380 |
Weighted Average | Recurring | Level 3 | Credit | Credit Default Swap Model | Funding Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.0084 | 0.0093 |
Weighted Average | Recurring | Level 3 | Equity | Option Model | At the Money Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.36 | 0.38 |
Weighted Average | Recurring | Level 3 | Equity | Option Model | Equity Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.70 | 0.71 |
Weighted Average | Recurring | Level 3 | Equity | Option Model | FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | (0.37) | (0.26) |
Weighted Average | Recurring | Level 3 | Equity | Option Model | Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | (0.01) | (0.01) |
Other secured financings, measurement input value | (0.01) | |
Weighted Average | Recurring | Level 3 | Commodity and other | Option Model | Commodity Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.18 | 0.17 |
Weighted Average | Recurring | Level 3 | Commodity and other | Option Model | Cross-Commodity Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.93 | 0.93 |
Weighted Average | Recurring | Level 3 | Commodity and other | Option Model | Forward Power Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 28 | 31 |
Weighted Average | Nonrecurring | Level 3 | Corporate Loan Model | Credit Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Loans, measurement input value | 0.0225 | 0.0181 |
Weighted Average | Nonrecurring | Level 3 | Warehouse Model | Credit Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Loans, measurement input value | 0.0297 | 0.0247 |
Average | Recurring | Level 3 | Option Model | IR Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | 0.85 | |
Average | Recurring | Level 3 | Option Model | IR FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | (0.07) | 0.44 |
Average | Recurring | Level 3 | Interest rate | Option Model | IR Curve Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.72 | |
Average | Recurring | Level 3 | Interest rate | Option Model | Bond Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.13 | |
Average | Recurring | Level 3 | Interest rate | Option Model | Inflation Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.44 | 0.44 |
Average | Recurring | Level 3 | Interest rate | Option Model | IR Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.63 | 0.48 |
Average | Recurring | Level 3 | Foreign exchange | Option Model | Contingency Probability | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.94 | 0.93 |
Average | Recurring | Level 3 | Foreign exchange | Option Model | IR Curve | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.10 | |
Average | Recurring | Level 3 | Foreign exchange | Option Model | IR FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.46 | 0.55 |
Average | Recurring | Level 3 | Foreign exchange | Option Model | IR Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.63 | 0.48 |
Average | Recurring | Level 3 | Equity | Option Model | IR Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.18 | 0.15 |
Median | Recurring | Level 3 | Option Model | IR Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | 0.91 | |
Median | Recurring | Level 3 | Option Model | IR FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | (0.07) | 0.44 |
Median | Recurring | Level 3 | Interest rate | Option Model | IR Curve Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.72 | |
Median | Recurring | Level 3 | Interest rate | Option Model | Bond Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.14 | |
Median | Recurring | Level 3 | Interest rate | Option Model | Inflation Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.41 | 0.40 |
Median | Recurring | Level 3 | Interest rate | Option Model | IR Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.59 | 0.51 |
Median | Recurring | Level 3 | Foreign exchange | Option Model | Contingency Probability | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.95 | 0.95 |
Median | Recurring | Level 3 | Foreign exchange | Option Model | IR Curve | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.10 | |
Median | Recurring | Level 3 | Foreign exchange | Option Model | IR FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.46 | 0.55 |
Median | Recurring | Level 3 | Foreign exchange | Option Model | IR Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.59 | 0.51 |
Median | Recurring | Level 3 | Equity | Option Model | IR Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.16 | 0.12 |
Minimum | Recurring | Level 3 | Comparable Pricing | Equity Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Investments, measurement input value | 0.75 | 0.75 |
Minimum | Recurring | Level 3 | Discounted Cash Flow | Exit Multiple | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Investments, measurement input value | 7 | 7 |
Minimum | Recurring | Level 3 | Discounted Cash Flow | Funding Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Other secured financings, measurement input value | 0.0111 | 0.0103 |
Minimum | Recurring | Level 3 | Discounted Cash Flow | WACC | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Investments, measurement input value | 0.08 | 0.09 |
Minimum | Recurring | Level 3 | Market Approach | EBITDA Multiple | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Investments, measurement input value | 7 | 6 |
Minimum | Recurring | Level 3 | Option Model | At the Money Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Deposits, measurement input value | 0.16 | |
Other secured financings, measurement input value | 0.10 | |
Borrowings, measurement input value | 0.05 | 0.05 |
Minimum | Recurring | Level 3 | Option Model | Equity Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | 0.38 | 0.45 |
Minimum | Recurring | Level 3 | Option Model | Equity - FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | (0.75) | (0.75) |
Minimum | Recurring | Level 3 | Option Model | IR Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | 0.58 | |
Minimum | Recurring | Level 3 | Option Model | IR FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | (0.26) | 0.28 |
Minimum | Recurring | Level 3 | Option Model | Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | (0.02) | (0.02) |
Minimum | Recurring | Level 3 | U.S. Treasury and agency securities | Comparable Pricing | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 1 | |
Minimum | Recurring | Level 3 | State and municipal securities | Comparable Pricing | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.94 | |
Minimum | Recurring | Level 3 | MABS | Comparable Pricing | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0 | 0 |
Minimum | Recurring | Level 3 | Loans and lending commitments | Comparable Pricing | Loan Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.69 | 0.60 |
Minimum | Recurring | Level 3 | Loans and lending commitments | Margin Loan Model | Credit Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.0009 | 0.0014 |
Minimum | Recurring | Level 3 | Loans and lending commitments | Margin Loan Model | Discount Rate | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.01 | 0.01 |
Minimum | Recurring | Level 3 | Loans and lending commitments | Margin Loan Model | Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.15 | 0.19 |
Minimum | Recurring | Level 3 | Corporate and other debt | Comparable Pricing | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.11 | 0.12 |
Minimum | Recurring | Level 3 | Corporate and other debt | Discounted Cash Flow | Discount Rate | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.15 | |
Minimum | Recurring | Level 3 | Corporate and other debt | Option Model | At the Money Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.24 | |
Minimum | Recurring | Level 3 | Interest rate | Option Model | IR Curve Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.47 | |
Minimum | Recurring | Level 3 | Interest rate | Option Model | Bond Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.04 | |
Minimum | Recurring | Level 3 | Interest rate | Option Model | Inflation Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.24 | 0.23 |
Minimum | Recurring | Level 3 | Interest rate | Option Model | IR Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.24 | 0.22 |
Minimum | Recurring | Level 3 | Credit | Correlation Model | Credit Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.29 | 0.36 |
Minimum | Recurring | Level 3 | Credit | Credit Default Swap Model | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0 | 0 |
Minimum | Recurring | Level 3 | Credit | Credit Default Swap Model | Cash-Synthetic Basis | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.06 | 0.08 |
Minimum | Recurring | Level 3 | Credit | Credit Default Swap Model | Credit Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.0009 | 0.0246 |
Minimum | Recurring | Level 3 | Credit | Credit Default Swap Model | Funding Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.0047 | 0.0047 |
Minimum | Recurring | Level 3 | Foreign exchange | Option Model | Contingency Probability | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.85 | 0.90 |
Minimum | Recurring | Level 3 | Foreign exchange | Option Model | IR Curve | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.10 | |
Minimum | Recurring | Level 3 | Foreign exchange | Option Model | IR FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.32 | 0.53 |
Minimum | Recurring | Level 3 | Foreign exchange | Option Model | IR Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.24 | 0.22 |
Minimum | Recurring | Level 3 | Equity | Option Model | At the Money Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.09 | 0.17 |
Minimum | Recurring | Level 3 | Equity | Option Model | Equity Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.05 | 0.05 |
Minimum | Recurring | Level 3 | Equity | Option Model | FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | (0.79) | (0.60) |
Minimum | Recurring | Level 3 | Equity | Option Model | IR Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | (0.11) | (0.07) |
Minimum | Recurring | Level 3 | Equity | Option Model | Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | (0.02) | (0.02) |
Minimum | Recurring | Level 3 | Commodity and other | Option Model | Commodity Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.07 | 0.07 |
Minimum | Recurring | Level 3 | Commodity and other | Option Model | Cross-Commodity Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.43 | 0.05 |
Minimum | Recurring | Level 3 | Commodity and other | Option Model | Forward Power Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 3 | 3 |
Minimum | Nonrecurring | Level 3 | Corporate Loan Model | Credit Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Loans, measurement input value | 0.0069 | 0.0097 |
Minimum | Nonrecurring | Level 3 | Warehouse Model | Credit Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Loans, measurement input value | 0.0287 | 0.0223 |
Maximum | Corporate Loan Model | Credit Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Loans, measurement input value | 0.0446 | 0.0434 |
Maximum | Warehouse Model | Credit Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Loans, measurement input value | 0.0318 | 0.0313 |
Maximum | Recurring | Level 3 | Comparable Pricing | Equity Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Investments, measurement input value | 1 | 1 |
Maximum | Recurring | Level 3 | Discounted Cash Flow | Exit Multiple | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Investments, measurement input value | 16 | 10 |
Maximum | Recurring | Level 3 | Discounted Cash Flow | Funding Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Other secured financings, measurement input value | 0.0124 | 0.0193 |
Maximum | Recurring | Level 3 | Discounted Cash Flow | WACC | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Investments, measurement input value | 0.17 | 0.15 |
Maximum | Recurring | Level 3 | Market Approach | EBITDA Multiple | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Investments, measurement input value | 24 | 24 |
Maximum | Recurring | Level 3 | Option Model | At the Money Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Deposits, measurement input value | 0.37 | |
Other secured financings, measurement input value | 0.40 | |
Borrowings, measurement input value | 0.44 | 0.35 |
Maximum | Recurring | Level 3 | Option Model | Equity Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | 0.94 | 0.98 |
Maximum | Recurring | Level 3 | Option Model | Equity - FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | 0.26 | 0.50 |
Maximum | Recurring | Level 3 | Option Model | IR Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | 0.97 | |
Maximum | Recurring | Level 3 | Option Model | IR FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | 0.10 | 0.58 |
Maximum | Recurring | Level 3 | Option Model | Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Borrowings, measurement input value | 0 | 0 |
Maximum | Recurring | Level 3 | U.S. Treasury and agency securities | Comparable Pricing | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 1.04 | |
Maximum | Recurring | Level 3 | State and municipal securities | Comparable Pricing | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 1 | |
Maximum | Recurring | Level 3 | MABS | Comparable Pricing | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.96 | 0.97 |
Maximum | Recurring | Level 3 | Loans and lending commitments | Comparable Pricing | Loan Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 1 | 1.01 |
Maximum | Recurring | Level 3 | Loans and lending commitments | Margin Loan Model | Credit Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.0039 | 0.0090 |
Maximum | Recurring | Level 3 | Loans and lending commitments | Margin Loan Model | Discount Rate | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.09 | 0.07 |
Maximum | Recurring | Level 3 | Loans and lending commitments | Margin Loan Model | Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.80 | 0.56 |
Maximum | Recurring | Level 3 | Corporate and other debt | Comparable Pricing | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 1.08 | 1 |
Maximum | Recurring | Level 3 | Corporate and other debt | Discounted Cash Flow | Discount Rate | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.21 | |
Maximum | Recurring | Level 3 | Corporate and other debt | Option Model | At the Money Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Debt securities, trading assets, measurement input value | 0.78 | |
Maximum | Recurring | Level 3 | Interest rate | Option Model | IR Curve Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.90 | |
Maximum | Recurring | Level 3 | Interest rate | Option Model | Bond Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.15 | |
Maximum | Recurring | Level 3 | Interest rate | Option Model | Inflation Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.63 | 0.65 |
Maximum | Recurring | Level 3 | Interest rate | Option Model | IR Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 1.56 | 0.95 |
Maximum | Recurring | Level 3 | Credit | Correlation Model | Credit Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.62 | 0.69 |
Maximum | Recurring | Level 3 | Credit | Credit Default Swap Model | Bond Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 1.04 | 0.75 |
Maximum | Recurring | Level 3 | Credit | Credit Default Swap Model | Cash-Synthetic Basis | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.06 | 0.09 |
Maximum | Recurring | Level 3 | Credit | Credit Default Swap Model | Credit Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.0469 | 0.0499 |
Maximum | Recurring | Level 3 | Credit | Credit Default Swap Model | Funding Spread | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.0117 | 0.0098 |
Maximum | Recurring | Level 3 | Foreign exchange | Option Model | Contingency Probability | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.95 | 0.95 |
Maximum | Recurring | Level 3 | Foreign exchange | Option Model | IR Curve | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.11 | |
Maximum | Recurring | Level 3 | Foreign exchange | Option Model | IR FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.56 | 0.56 |
Maximum | Recurring | Level 3 | Foreign exchange | Option Model | IR Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 1.56 | 0.95 |
Maximum | Recurring | Level 3 | Equity | Option Model | At the Money Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.90 | 0.63 |
Maximum | Recurring | Level 3 | Equity | Option Model | Equity Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.98 | 0.96 |
Maximum | Recurring | Level 3 | Equity | Option Model | FX Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.60 | 0.55 |
Maximum | Recurring | Level 3 | Equity | Option Model | IR Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.44 | 0.45 |
Maximum | Recurring | Level 3 | Equity | Option Model | Volatility Skew | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0 | 0 |
Maximum | Recurring | Level 3 | Commodity and other | Option Model | Commodity Volatility | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 1.83 | 1.87 |
Maximum | Recurring | Level 3 | Commodity and other | Option Model | Cross-Commodity Correlation | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 0.99 | 0.99 |
Maximum | Recurring | Level 3 | Commodity and other | Option Model | Forward Power Price | ||
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements | ||
Derivative assets, measurement input value | 182 | 185 |
Fair Values - Fund Interests Me
Fair Values - Fund Interests Measured Based on Net Asset Value (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Measured Based on Net Asset Value | ||
Carrying Value | $ 3,521 | $ 2,582 |
Commitment | 604 | 481 |
Private equity | ||
Measured Based on Net Asset Value | ||
Carrying Value | 2,078 | 1,374 |
Commitment | 450 | 316 |
Carrying Value of Nonredeemable Funds by Contractual Maturity | ||
Less than 5 years | 1,205 | |
5-10 years | 842 | |
Over 10 years | 31 | |
Total | 2,078 | |
Real estate | ||
Measured Based on Net Asset Value | ||
Carrying Value | 1,349 | 1,105 |
Commitment | 150 | 161 |
Carrying Value of Nonredeemable Funds by Contractual Maturity | ||
Less than 5 years | 1,041 | |
5-10 years | 202 | |
Over 10 years | 106 | |
Total | 1,349 | |
Hedge | ||
Measured Based on Net Asset Value | ||
Carrying Value | 94 | 103 |
Commitment | $ 4 | $ 4 |
Fair Values - Assets and Liab_2
Fair Values - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets at fair value | |||
Loans | $ 3,043 | $ 3,687 | |
Other assets—Other investments | 113 | 114 | |
Total | 3,156 | 3,801 | |
Liabilities at fair value | |||
Other liabilities and accrued expenses—Lending commitments | 201 | 357 | |
Total | 201 | 357 | |
Assets | |||
Fair Value Adjustment Disclosure | |||
Gains (losses) from fair value remeasurements | (60) | (170) | $ (73) |
Loans | |||
Fair Value Adjustment Disclosure | |||
Gains (losses) from fair value remeasurements | 18 | (68) | 18 |
Other investments | |||
Fair Value Adjustment Disclosure | |||
Gains (losses) from fair value remeasurements | (56) | (56) | (66) |
Other assets—Premises, equipment and software | |||
Fair Value Adjustment Disclosure | |||
Gains (losses) from fair value remeasurements | (22) | (46) | (25) |
Liabilities | |||
Fair Value Adjustment Disclosure | |||
Gains (losses) from fair value remeasurements | 87 | (48) | 75 |
Other liabilities and accrued expenses—Lending commitments2 | |||
Fair Value Adjustment Disclosure | |||
Gains (losses) from fair value remeasurements | 87 | (48) | $ 75 |
Level 2 | |||
Assets at fair value | |||
Loans | 1,543 | 2,307 | |
Other assets—Other investments | 0 | 14 | |
Total | 1,543 | 2,321 | |
Liabilities at fair value | |||
Other liabilities and accrued expenses—Lending commitments | 132 | 292 | |
Total | 132 | 292 | |
Level 3 | |||
Assets at fair value | |||
Loans | 1,500 | 1,380 | |
Other assets—Other investments | 113 | 100 | |
Total | 1,613 | 1,480 | |
Liabilities at fair value | |||
Other liabilities and accrued expenses—Lending commitments | 69 | 65 | |
Total | $ 69 | $ 65 |
Fair Values - Financial Instrum
Fair Values - Financial Instruments Not Measured at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets | |||
Cash and due from banks | $ 4,293 | $ 30,541 | $ 24,816 |
Interest bearing deposits with banks | 45,366 | 21,299 | 21,348 |
Restricted cash | 32,512 | 35,356 | $ 34,231 |
Securities borrowed | 106,549 | 116,313 | |
Customer and other receivables | 55,646 | 53,298 | |
Loans | 118,060 | 99,815 | |
Financial liabilities | |||
Deposits | 190,356 | 187,820 | |
Securities sold under agreements to repurchase with affiliates | 54,200 | 49,759 | |
Securities loaned | 8,506 | 11,908 | |
Other secured financings | 14,698 | 9,466 | |
Customer and other payables | 197,834 | 179,559 | |
Borrowings | 192,627 | 189,662 | |
Carrying Value | |||
Financial assets | |||
Cash and due from banks | 4,293 | 30,541 | |
Interest bearing deposits with banks | 45,366 | 21,299 | |
Restricted cash | 32,512 | 35,356 | |
Investment securities—HTM | 43,502 | 30,771 | |
Securities purchased under agreements to resell | 88,220 | 98,522 | |
Securities borrowed | 106,549 | 116,313 | |
Customer and other receivables | 51,134 | 47,972 | |
Loans | 130,637 | 115,579 | |
Other assets | 495 | 461 | |
Financial liabilities | |||
Deposits | 188,257 | 187,378 | |
Securities sold under agreements to repurchase with affiliates | 53,467 | 48,947 | |
Securities loaned | 8,506 | 11,908 | |
Other secured financings | 6,889 | 4,221 | |
Customer and other payables | 195,035 | 176,561 | |
Borrowings | 128,166 | 138,478 | |
Additional Disclosures | |||
Lending commitments | 119,004 | 104,844 | |
Fair Value | |||
Financial assets | |||
Cash and due from banks | 4,293 | 30,541 | |
Interest bearing deposits with banks | 45,366 | 21,299 | |
Restricted cash | 32,512 | 35,356 | |
Investment securities—HTM | 44,133 | 29,965 | |
Securities purchased under agreements to resell | 88,236 | 98,477 | |
Securities borrowed | 106,551 | 116,312 | |
Customer and other receivables | 51,087 | 47,839 | |
Loans | 130,352 | 115,725 | |
Other assets | 495 | 461 | |
Financial liabilities | |||
Deposits | 188,639 | 187,372 | |
Securities sold under agreements to repurchase with affiliates | 53,486 | 48,910 | |
Securities loaned | 8,506 | 11,906 | |
Other secured financings | 6,892 | 4,227 | |
Customer and other payables | 195,035 | 176,561 | |
Borrowings | 133,573 | 140,115 | |
Additional Disclosures | |||
Lending commitments | 1,086 | 1,570 | |
Fair Value | Level 1 | |||
Financial assets | |||
Cash and due from banks | 4,293 | 30,541 | |
Interest bearing deposits with banks | 45,366 | 21,299 | |
Restricted cash | 32,512 | 35,356 | |
Investment securities—HTM | 30,661 | 17,473 | |
Securities purchased under agreements to resell | 0 | 0 | |
Securities borrowed | 0 | 0 | |
Customer and other receivables | 0 | 0 | |
Loans | 0 | 0 | |
Other assets | 0 | 0 | |
Financial liabilities | |||
Deposits | 0 | 0 | |
Securities sold under agreements to repurchase with affiliates | 0 | 0 | |
Securities loaned | 0 | 0 | |
Other secured financings | 0 | 0 | |
Customer and other payables | 0 | 0 | |
Borrowings | 0 | 0 | |
Additional Disclosures | |||
Lending commitments | 0 | 0 | |
Fair Value | Level 2 | |||
Financial assets | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits with banks | 0 | 0 | |
Restricted cash | 0 | 0 | |
Investment securities—HTM | 12,683 | 12,018 | |
Securities purchased under agreements to resell | 86,794 | 97,611 | |
Securities borrowed | 106,551 | 116,312 | |
Customer and other receivables | 48,215 | 44,620 | |
Loans | 22,293 | 25,604 | |
Other assets | 495 | 461 | |
Financial liabilities | |||
Deposits | 188,639 | 187,372 | |
Securities sold under agreements to repurchase with affiliates | 53,486 | 48,385 | |
Securities loaned | 8,506 | 11,906 | |
Other secured financings | 6,800 | 3,233 | |
Customer and other payables | 195,035 | 176,561 | |
Borrowings | 133,563 | 140,085 | |
Additional Disclosures | |||
Lending commitments | 748 | 1,249 | |
Fair Value | Level 3 | |||
Financial assets | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits with banks | 0 | 0 | |
Restricted cash | 0 | 0 | |
Investment securities—HTM | 789 | 474 | |
Securities purchased under agreements to resell | 1,442 | 866 | |
Securities borrowed | 0 | 0 | |
Customer and other receivables | 2,872 | 3,219 | |
Loans | 108,059 | 90,121 | |
Other assets | 0 | 0 | |
Financial liabilities | |||
Deposits | 0 | 0 | |
Securities sold under agreements to repurchase with affiliates | 0 | 525 | |
Securities loaned | 0 | 0 | |
Other secured financings | 92 | 994 | |
Customer and other payables | 0 | 0 | |
Borrowings | 10 | 30 | |
Additional Disclosures | |||
Lending commitments | $ 338 | $ 321 |
Fair Value Option - Borrowings
Fair Value Option - Borrowings Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurements | ||
Borrowings at fair value | $ 64,461 | $ 51,184 |
Recurring | Equity | ||
Fair Value Measurements | ||
Borrowings at fair value | 30,214 | 24,494 |
Recurring | Interest Rates | ||
Fair Value Measurements | ||
Borrowings at fair value | 27,298 | 22,343 |
Recurring | Commodities | ||
Fair Value Measurements | ||
Borrowings at fair value | 4,501 | 2,735 |
Recurring | Credit | ||
Fair Value Measurements | ||
Borrowings at fair value | 1,246 | 856 |
Recurring | Foreign exchange | ||
Fair Value Measurements | ||
Borrowings at fair value | $ 1,202 | $ 756 |
Fair Value Option - Net Revenue
Fair Value Option - Net Revenues from Borrowings under the Fair Value Option (Details) - Borrowings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Option Quantitative Disclosures | |||
Earnings impact | $ (7,307) | $ 2,358 | $ (4,950) |
Trading revenues | |||
Fair Value Option Quantitative Disclosures | |||
Earnings impact | (6,932) | 2,679 | (4,507) |
Interest expense | |||
Fair Value Option Quantitative Disclosures | |||
Earnings impact | $ 375 | $ 321 | $ 443 |
Fair Value Option - Gains (Loss
Fair Value Option - Gains (Losses) Due to Changes in Instrument-Specific Credit Risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value disclosure | |||
Cumulative pre-tax DVA gain (loss) recognized in AOCI | $ (1,998) | $ 172 | |
Borrowings | Trading revenues | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument-specific credit risk | (11) | (24) | $ (12) |
Borrowings | OCI | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument-specific credit risk | (2,140) | 1,962 | (903) |
Loans and other debt | Trading revenues | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument-specific credit risk | 223 | 165 | 159 |
Loans and other debt | OCI | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument-specific credit risk | 0 | 0 | 0 |
Lending commitments | Trading revenues | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument-specific credit risk | (2) | (3) | (2) |
Lending commitments | OCI | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument-specific credit risk | 0 | 0 | 0 |
Other | Trading revenues | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument-specific credit risk | 0 | (32) | 0 |
Other | OCI | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument-specific credit risk | $ (30) | $ 41 | $ (7) |
Fair Value Option - Difference
Fair Value Option - Difference Between Contractual Principal and Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Loans and other debt | $ 13,037 | $ 13,094 |
Nonaccrual loans | 10,849 | 10,831 |
Borrowings | $ (1,665) | $ 2,657 |
Fair Value Option - Fair Value
Fair Value Option - Fair Value Loans on Nonaccrual Status (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Nonaccrual loans | $ 1,100 | $ 1,497 |
Nonaccrual loans 90 or more days past due | $ 330 | $ 812 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Fair Values of Derivative Contracts (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Assets | ||
Total gross derivatives | $ 319,539 | $ 288,585 |
Amounts offset against counterparty netting | (245,041) | (220,028) |
Amounts offset against cash collateral netting | (42,497) | (39,384) |
Total in Trading assets | 32,001 | 29,173 |
Amounts not offset against financial instruments collateral | (15,596) | (12,467) |
Amounts not offset against other cash collateral | (46) | (31) |
Net amounts | 16,359 | 16,675 |
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | 1,900 | 2,206 |
Derivative Liabilities | ||
Total gross derivatives | 310,699 | 275,439 |
Amounts offset against counterparty netting | (245,041) | (220,028) |
Amounts offset against cash collateral netting | (37,224) | (28,153) |
Total in Trading liabilities | 28,434 | 27,258 |
Amounts not offset against financial instruments collateral | (8,034) | (5,475) |
Amounts not offset against other cash collateral | (14) | (54) |
Net amounts | 20,386 | 21,729 |
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | 3,680 | 4,773 |
Bilateral OTC | ||
Derivative Assets | ||
Total gross derivatives | 284,943 | 255,911 |
Amounts offset against counterparty netting | (213,710) | (190,220) |
Amounts offset against cash collateral netting | (41,222) | (38,204) |
Total in Trading assets | 30,011 | 27,487 |
Amounts not offset against financial instruments collateral | (15,596) | (12,467) |
Amounts not offset against other cash collateral | (46) | (31) |
Net amounts | 14,369 | 14,989 |
Derivative Liabilities | ||
Total gross derivatives | 277,330 | 243,576 |
Amounts offset against counterparty netting | (213,710) | (190,220) |
Amounts offset against cash collateral netting | (36,392) | (27,860) |
Total in Trading liabilities | 27,228 | 25,496 |
Amounts not offset against financial instruments collateral | (7,747) | (4,709) |
Amounts not offset against other cash collateral | (14) | (53) |
Net amounts | 19,467 | 20,734 |
Cleared OTC | ||
Derivative Assets | ||
Total gross derivatives | 8,656 | 6,704 |
Amounts offset against counterparty netting | (7,294) | (5,260) |
Amounts offset against cash collateral netting | (1,275) | (1,180) |
Total in Trading assets | 87 | 264 |
Amounts not offset against financial instruments collateral | 0 | 0 |
Amounts not offset against other cash collateral | 0 | 0 |
Net amounts | 87 | 264 |
Derivative Liabilities | ||
Total gross derivatives | 8,250 | 5,603 |
Amounts offset against counterparty netting | (7,294) | (5,260) |
Amounts offset against cash collateral netting | (832) | (293) |
Total in Trading liabilities | 124 | 50 |
Amounts not offset against financial instruments collateral | 0 | 0 |
Amounts not offset against other cash collateral | 0 | (1) |
Net amounts | 124 | 49 |
Exchange- Traded | ||
Derivative Assets | ||
Total gross derivatives | 25,940 | 25,970 |
Amounts offset against counterparty netting | (24,037) | (24,548) |
Amounts offset against cash collateral netting | 0 | 0 |
Total in Trading assets | 1,903 | 1,422 |
Amounts not offset against financial instruments collateral | 0 | 0 |
Amounts not offset against other cash collateral | 0 | 0 |
Net amounts | 1,903 | 1,422 |
Derivative Liabilities | ||
Total gross derivatives | 25,119 | 26,260 |
Amounts offset against counterparty netting | (24,037) | (24,548) |
Amounts offset against cash collateral netting | 0 | 0 |
Total in Trading liabilities | 1,082 | 1,712 |
Amounts not offset against financial instruments collateral | (287) | (766) |
Amounts not offset against other cash collateral | 0 | 0 |
Net amounts | 795 | 946 |
Designated as accounting hedges | ||
Derivative Assets | ||
Total gross derivatives | 715 | 548 |
Derivative Liabilities | ||
Total gross derivatives | 160 | 262 |
Designated as accounting hedges | Bilateral OTC | ||
Derivative Assets | ||
Total gross derivatives | 714 | 539 |
Derivative Liabilities | ||
Total gross derivatives | 122 | 238 |
Designated as accounting hedges | Cleared OTC | ||
Derivative Assets | ||
Total gross derivatives | 1 | 9 |
Derivative Liabilities | ||
Total gross derivatives | 38 | 24 |
Designated as accounting hedges | Exchange- Traded | ||
Derivative Assets | ||
Total gross derivatives | 0 | 0 |
Derivative Liabilities | ||
Total gross derivatives | 0 | 0 |
Designated as accounting hedges | Interest rate | ||
Derivative Assets | ||
Total gross derivatives | 673 | 513 |
Derivative Liabilities | ||
Total gross derivatives | 1 | 176 |
Designated as accounting hedges | Interest rate | Bilateral OTC | ||
Derivative Assets | ||
Total gross derivatives | 673 | 512 |
Derivative Liabilities | ||
Total gross derivatives | 1 | 176 |
Designated as accounting hedges | Interest rate | Cleared OTC | ||
Derivative Assets | ||
Total gross derivatives | 0 | 1 |
Derivative Liabilities | ||
Total gross derivatives | 0 | 0 |
Designated as accounting hedges | Interest rate | Exchange- Traded | ||
Derivative Assets | ||
Total gross derivatives | 0 | 0 |
Derivative Liabilities | ||
Total gross derivatives | 0 | 0 |
Designated as accounting hedges | Foreign exchange | ||
Derivative Assets | ||
Total gross derivatives | 42 | 35 |
Derivative Liabilities | ||
Total gross derivatives | 159 | 86 |
Designated as accounting hedges | Foreign exchange | Bilateral OTC | ||
Derivative Assets | ||
Total gross derivatives | 41 | 27 |
Derivative Liabilities | ||
Total gross derivatives | 121 | 62 |
Designated as accounting hedges | Foreign exchange | Cleared OTC | ||
Derivative Assets | ||
Total gross derivatives | 1 | 8 |
Derivative Liabilities | ||
Total gross derivatives | 38 | 24 |
Designated as accounting hedges | Foreign exchange | Exchange- Traded | ||
Derivative Assets | ||
Total gross derivatives | 0 | 0 |
Derivative Liabilities | ||
Total gross derivatives | 0 | 0 |
Not designated as accounting hedges | ||
Derivative Assets | ||
Total gross derivatives | 318,824 | 288,037 |
Derivative Liabilities | ||
Total gross derivatives | 310,539 | 275,177 |
Not designated as accounting hedges | Bilateral OTC | ||
Derivative Assets | ||
Total gross derivatives | 284,229 | 255,372 |
Derivative Liabilities | ||
Total gross derivatives | 277,208 | 243,338 |
Not designated as accounting hedges | Cleared OTC | ||
Derivative Assets | ||
Total gross derivatives | 8,655 | 6,695 |
Derivative Liabilities | ||
Total gross derivatives | 8,212 | 5,579 |
Not designated as accounting hedges | Exchange- Traded | ||
Derivative Assets | ||
Total gross derivatives | 25,940 | 25,970 |
Derivative Liabilities | ||
Total gross derivatives | 25,119 | 26,260 |
Not designated as accounting hedges | Interest rate | ||
Derivative Assets | ||
Total gross derivatives | 184,808 | 158,352 |
Derivative Liabilities | ||
Total gross derivatives | 172,630 | 145,924 |
Not designated as accounting hedges | Interest rate | Bilateral OTC | ||
Derivative Assets | ||
Total gross derivatives | 179,450 | 153,768 |
Derivative Liabilities | ||
Total gross derivatives | 168,597 | 142,592 |
Not designated as accounting hedges | Interest rate | Cleared OTC | ||
Derivative Assets | ||
Total gross derivatives | 4,839 | 3,887 |
Derivative Liabilities | ||
Total gross derivatives | 3,597 | 2,669 |
Not designated as accounting hedges | Interest rate | Exchange- Traded | ||
Derivative Assets | ||
Total gross derivatives | 519 | 697 |
Derivative Liabilities | ||
Total gross derivatives | 436 | 663 |
Not designated as accounting hedges | Credit | ||
Derivative Assets | ||
Total gross derivatives | 7,312 | 6,128 |
Derivative Liabilities | ||
Total gross derivatives | 7,921 | 6,153 |
Not designated as accounting hedges | Credit | Bilateral OTC | ||
Derivative Assets | ||
Total gross derivatives | 4,895 | 4,630 |
Derivative Liabilities | ||
Total gross derivatives | 4,798 | 4,545 |
Not designated as accounting hedges | Credit | Cleared OTC | ||
Derivative Assets | ||
Total gross derivatives | 2,417 | 1,498 |
Derivative Liabilities | ||
Total gross derivatives | 3,123 | 1,608 |
Not designated as accounting hedges | Credit | Exchange- Traded | ||
Derivative Assets | ||
Total gross derivatives | 0 | 0 |
Derivative Liabilities | ||
Total gross derivatives | 0 | 0 |
Not designated as accounting hedges | Foreign exchange | ||
Derivative Assets | ||
Total gross derivatives | 64,378 | 63,211 |
Derivative Liabilities | ||
Total gross derivatives | 67,496 | 63,420 |
Not designated as accounting hedges | Foreign exchange | Bilateral OTC | ||
Derivative Assets | ||
Total gross derivatives | 62,957 | 61,846 |
Derivative Liabilities | ||
Total gross derivatives | 65,965 | 62,099 |
Not designated as accounting hedges | Foreign exchange | Cleared OTC | ||
Derivative Assets | ||
Total gross derivatives | 1,399 | 1,310 |
Derivative Liabilities | ||
Total gross derivatives | 1,492 | 1,302 |
Not designated as accounting hedges | Foreign exchange | Exchange- Traded | ||
Derivative Assets | ||
Total gross derivatives | 22 | 55 |
Derivative Liabilities | ||
Total gross derivatives | 39 | 19 |
Not designated as accounting hedges | Equity | ||
Derivative Assets | ||
Total gross derivatives | 51,068 | 47,874 |
Derivative Liabilities | ||
Total gross derivatives | 52,868 | 50,640 |
Not designated as accounting hedges | Equity | Bilateral OTC | ||
Derivative Assets | ||
Total gross derivatives | 27,621 | 24,590 |
Derivative Liabilities | ||
Total gross derivatives | 30,135 | 27,119 |
Not designated as accounting hedges | Equity | Cleared OTC | ||
Derivative Assets | ||
Total gross derivatives | 0 | 0 |
Derivative Liabilities | ||
Total gross derivatives | 0 | 0 |
Not designated as accounting hedges | Equity | Exchange- Traded | ||
Derivative Assets | ||
Total gross derivatives | 23,447 | 23,284 |
Derivative Liabilities | ||
Total gross derivatives | 22,733 | 23,521 |
Not designated as accounting hedges | Commodity and other | ||
Derivative Assets | ||
Total gross derivatives | 11,258 | 12,472 |
Derivative Liabilities | ||
Total gross derivatives | 9,624 | 9,040 |
Not designated as accounting hedges | Commodity and other | Bilateral OTC | ||
Derivative Assets | ||
Total gross derivatives | 9,306 | 10,538 |
Derivative Liabilities | ||
Total gross derivatives | 7,713 | 6,983 |
Not designated as accounting hedges | Commodity and other | Cleared OTC | ||
Derivative Assets | ||
Total gross derivatives | 0 | 0 |
Derivative Liabilities | ||
Total gross derivatives | 0 | 0 |
Not designated as accounting hedges | Commodity and other | Exchange- Traded | ||
Derivative Assets | ||
Total gross derivatives | 1,952 | 1,934 |
Derivative Liabilities | ||
Total gross derivatives | $ 1,911 | $ 2,057 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Notionals of Derivative Contracts (Details) - USD ($) $ in Billions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Notional Amount | ||
Derivative assets | $ 16,461 | $ 16,457 |
Derivative liabilities | 16,098 | 15,522 |
Bilateral OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 7,577 | 7,895 |
Derivative liabilities | 7,728 | 8,027 |
Cleared OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 7,662 | 6,953 |
Derivative liabilities | 7,114 | 6,030 |
Exchange- Traded | ||
Derivatives, Notional Amount | ||
Derivative assets | 1,222 | 1,609 |
Derivative liabilities | 1,256 | 1,465 |
Designated as accounting hedges | ||
Derivatives, Notional Amount | ||
Derivative assets | 110 | 73 |
Derivative liabilities | 82 | 115 |
Designated as accounting hedges | Interest rate | ||
Derivatives, Notional Amount | ||
Derivative assets | 108 | 67 |
Derivative liabilities | 71 | 109 |
Designated as accounting hedges | Foreign exchange | ||
Derivatives, Notional Amount | ||
Derivative assets | 2 | 6 |
Derivative liabilities | 11 | 6 |
Designated as accounting hedges | Bilateral OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 16 | 20 |
Derivative liabilities | 9 | 7 |
Designated as accounting hedges | Bilateral OTC | Interest rate | ||
Derivatives, Notional Amount | ||
Derivative assets | 14 | 15 |
Derivative liabilities | 0 | 2 |
Designated as accounting hedges | Bilateral OTC | Foreign exchange | ||
Derivatives, Notional Amount | ||
Derivative assets | 2 | 5 |
Derivative liabilities | 9 | 5 |
Designated as accounting hedges | Cleared OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 94 | 53 |
Derivative liabilities | 73 | 108 |
Designated as accounting hedges | Cleared OTC | Interest rate | ||
Derivatives, Notional Amount | ||
Derivative assets | 94 | 52 |
Derivative liabilities | 71 | 107 |
Designated as accounting hedges | Cleared OTC | Foreign exchange | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 1 |
Derivative liabilities | 2 | 1 |
Designated as accounting hedges | Exchange- Traded | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Designated as accounting hedges | Exchange- Traded | Interest rate | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Designated as accounting hedges | Exchange- Traded | Foreign exchange | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not designated as accounting hedges | ||
Derivatives, Notional Amount | ||
Derivative assets | 16,351 | 16,384 |
Derivative liabilities | 16,016 | 15,407 |
Not designated as accounting hedges | Interest rate | ||
Derivatives, Notional Amount | ||
Derivative assets | 12,360 | 12,672 |
Derivative liabilities | 11,717 | 11,462 |
Not designated as accounting hedges | Credit | ||
Derivatives, Notional Amount | ||
Derivative assets | 215 | 236 |
Derivative liabilities | 237 | 235 |
Not designated as accounting hedges | Foreign exchange | ||
Derivatives, Notional Amount | ||
Derivative assets | 2,768 | 2,568 |
Derivative liabilities | 2,946 | 2,582 |
Not designated as accounting hedges | Equity | ||
Derivatives, Notional Amount | ||
Derivative assets | 848 | 744 |
Derivative liabilities | 970 | 991 |
Not designated as accounting hedges | Commodity and other | ||
Derivatives, Notional Amount | ||
Derivative assets | 160 | 164 |
Derivative liabilities | 146 | 137 |
Not designated as accounting hedges | Bilateral OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 7,561 | 7,875 |
Derivative liabilities | 7,719 | 8,020 |
Not designated as accounting hedges | Bilateral OTC | Interest rate | ||
Derivatives, Notional Amount | ||
Derivative assets | 4,230 | 4,807 |
Derivative liabilities | 4,185 | 4,946 |
Not designated as accounting hedges | Bilateral OTC | Credit | ||
Derivatives, Notional Amount | ||
Derivative assets | 136 | 162 |
Derivative liabilities | 153 | 162 |
Not designated as accounting hedges | Bilateral OTC | Foreign exchange | ||
Derivatives, Notional Amount | ||
Derivative assets | 2,667 | 2,436 |
Derivative liabilities | 2,841 | 2,451 |
Not designated as accounting hedges | Bilateral OTC | Equity | ||
Derivatives, Notional Amount | ||
Derivative assets | 429 | 373 |
Derivative liabilities | 455 | 389 |
Not designated as accounting hedges | Bilateral OTC | Commodity and other | ||
Derivatives, Notional Amount | ||
Derivative assets | 99 | 97 |
Derivative liabilities | 85 | 72 |
Not designated as accounting hedges | Cleared OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 7,568 | 6,900 |
Derivative liabilities | 7,041 | 5,922 |
Not designated as accounting hedges | Cleared OTC | Interest rate | ||
Derivatives, Notional Amount | ||
Derivative assets | 7,398 | 6,708 |
Derivative liabilities | 6,866 | 5,735 |
Not designated as accounting hedges | Cleared OTC | Credit | ||
Derivatives, Notional Amount | ||
Derivative assets | 79 | 74 |
Derivative liabilities | 84 | 73 |
Not designated as accounting hedges | Cleared OTC | Foreign exchange | ||
Derivatives, Notional Amount | ||
Derivative assets | 91 | 118 |
Derivative liabilities | 91 | 114 |
Not designated as accounting hedges | Cleared OTC | Equity | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not designated as accounting hedges | Cleared OTC | Commodity and other | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not designated as accounting hedges | Exchange- Traded | ||
Derivatives, Notional Amount | ||
Derivative assets | 1,222 | 1,609 |
Derivative liabilities | 1,256 | 1,465 |
Not designated as accounting hedges | Exchange- Traded | Interest rate | ||
Derivatives, Notional Amount | ||
Derivative assets | 732 | 1,157 |
Derivative liabilities | 666 | 781 |
Not designated as accounting hedges | Exchange- Traded | Credit | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not designated as accounting hedges | Exchange- Traded | Foreign exchange | ||
Derivatives, Notional Amount | ||
Derivative assets | 10 | 14 |
Derivative liabilities | 14 | 17 |
Not designated as accounting hedges | Exchange- Traded | Equity | ||
Derivatives, Notional Amount | ||
Derivative assets | 419 | 371 |
Derivative liabilities | 515 | 602 |
Not designated as accounting hedges | Exchange- Traded | Commodity and other | ||
Derivatives, Notional Amount | ||
Derivative assets | 61 | 67 |
Derivative liabilities | $ 61 | $ 65 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Gains (Losses) on Accounting Hedges and Fair Value Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment Securities—AFS | |||
Investment Securities—AFS and Deposits | |||
Carrying amount of currently or previously hedged asset | $ 917 | $ 201 | |
Basis adjustments included in carrying amount | 14 | 4 | |
Deposits | |||
Investment Securities—AFS and Deposits | |||
Carrying amount of currently or previously hedged asset | 5,435 | 0 | |
Basis adjustments included in carrying amount | (7) | 0 | |
Borrowings | |||
Borrowings | |||
Carrying amount of currently or previously hedged liability | 102,456 | 102,899 | |
Basis adjustments included in carrying amount | 2,593 | (1,689) | |
Fair Value Hedges | Interest Income | Interest rate | |||
Gain (Loss) on Fair Value Hedges Recognized in Interest Income / Expense | |||
Gains (losses) recognized in Interest Income / Expense | (10) | (4) | $ 0 |
Fair Value Hedges | Interest Income | Investment Securities—AFS | |||
Gain (Loss) on Fair Value Hedges Recognized in Interest Income / Expense | |||
Gains (losses) recognized in Interest Income / Expense | 10 | 4 | 0 |
Fair Value Hedges | Interest expense | Interest rate | |||
Gain (Loss) on Fair Value Hedges Recognized in Interest Income / Expense | |||
Gains (losses) recognized in Interest Income / Expense | 4,212 | (1,529) | (1,591) |
Fair Value Hedges | Interest expense | Deposits | |||
Gain (Loss) on Fair Value Hedges Recognized in Interest Income / Expense | |||
Gains (losses) recognized in Interest Income / Expense | 7 | 0 | 0 |
Fair Value Hedges | Interest expense | Borrowings | |||
Gain (Loss) on Fair Value Hedges Recognized in Interest Income / Expense | |||
Gains (losses) recognized in Interest Income / Expense | (4,288) | 1,511 | 1,393 |
Net Investment Hedges | Foreign exchange | |||
Net Investment Hedges | |||
Gains (losses) recognized in OCI, net of tax | 14 | ||
Gains (losses) recognized in OCI, net of tax | 295 | (365) | |
Forward points excluded from hedge effectiveness testing—Recognized in Interest income | $ 136 | ||
Forward points excluded from hedge effectiveness testing - Recognized in Interest income | $ 68 | $ (20) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Credit Risk-Related Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives | ||
Net derivative liabilities with credit risk- related contingent features | $ 21,620 | $ 16,403 |
Collateral posted | 17,392 | $ 11,981 |
Bilateral Downgrade Agreement | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade | 498 | |
One-notch downgrade | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade | 254 | |
Two-notch downgrade | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade | $ 328 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Maximum Potential Payout/Notional of Credit Protection Sold (Details) - Credit Protection Sold - USD ($) $ in Billions | Dec. 31, 2019 | Dec. 31, 2018 |
Credit Derivatives | ||
Maximum potential payout/notional | $ 216 | $ 224 |
Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 36 | 42 |
1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 37 | 51 |
3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 112 | 102 |
Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 31 | 29 |
CDS | ||
Credit Derivatives | ||
Maximum potential payout/notional | 216 | 224 |
CDS protection sold with identical protection purchased | 187 | 210 |
CDS | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 36 | 42 |
CDS | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 37 | 51 |
CDS | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 112 | 102 |
CDS | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 31 | 29 |
Single-name CDS | ||
Credit Derivatives | ||
Maximum potential payout/notional | 110 | 104 |
Single-name CDS | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 25 | 32 |
Single-name CDS | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 26 | 35 |
Single-name CDS | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 49 | 28 |
Single-name CDS | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 10 | 9 |
Single-name CDS | Investment grade | ||
Credit Derivatives | ||
Maximum potential payout/notional | 75 | 73 |
Single-name CDS | Investment grade | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 16 | 22 |
Single-name CDS | Investment grade | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 17 | 24 |
Single-name CDS | Investment grade | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 33 | 19 |
Single-name CDS | Investment grade | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 9 | 8 |
Single-name CDS | Non-investment grade | ||
Credit Derivatives | ||
Maximum potential payout/notional | 35 | 31 |
Single-name CDS | Non-investment grade | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 9 | 10 |
Single-name CDS | Non-investment grade | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 9 | 11 |
Single-name CDS | Non-investment grade | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 16 | 9 |
Single-name CDS | Non-investment grade | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 1 | 1 |
Index and basket CDS | ||
Credit Derivatives | ||
Maximum potential payout/notional | 106 | 120 |
Index and basket CDS | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 11 | 10 |
Index and basket CDS | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 11 | 16 |
Index and basket CDS | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 63 | 74 |
Index and basket CDS | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 21 | 20 |
Index and basket CDS | Investment grade | ||
Credit Derivatives | ||
Maximum potential payout/notional | 68 | 83 |
Index and basket CDS | Investment grade | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 4 | 5 |
Index and basket CDS | Investment grade | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 7 | 10 |
Index and basket CDS | Investment grade | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 46 | 61 |
Index and basket CDS | Investment grade | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 11 | 7 |
Index and basket CDS | Non-investment grade | ||
Credit Derivatives | ||
Maximum potential payout/notional | 38 | 37 |
Index and basket CDS | Non-investment grade | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 7 | 5 |
Index and basket CDS | Non-investment grade | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 4 | 6 |
Index and basket CDS | Non-investment grade | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 17 | 13 |
Index and basket CDS | Non-investment grade | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 10 | 13 |
Other credit contracts | ||
Credit Derivatives | ||
Maximum potential payout/notional | 0 | 0 |
Other credit contracts | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 0 | 0 |
Other credit contracts | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 0 | 0 |
Other credit contracts | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 0 | 0 |
Other credit contracts | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | $ 0 | $ 0 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Fair Value Asset/(Liability) of Credit Protection Sold (Details) - Credit Protection Sold - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Credit Derivatives | ||
Fair Value Asset (Liability) | $ 1,686 | $ (1,398) |
CDS | ||
Credit Derivatives | ||
Fair Value Asset (Liability) | 1,703 | (1,384) |
Single-name CDS | ||
Credit Derivatives | ||
Fair Value Asset (Liability) | 517 | (285) |
Single-name CDS | Investment grade | ||
Credit Derivatives | ||
Fair Value Asset (Liability) | 1,057 | 118 |
Single-name CDS | Non-investment grade | ||
Credit Derivatives | ||
Fair Value Asset (Liability) | (540) | (403) |
Index and basket CDS | ||
Credit Derivatives | ||
Fair Value Asset (Liability) | 1,186 | (1,099) |
Index and basket CDS | Investment grade | ||
Credit Derivatives | ||
Fair Value Asset (Liability) | 1,052 | 314 |
Index and basket CDS | Non-investment grade | ||
Credit Derivatives | ||
Fair Value Asset (Liability) | 134 | (1,413) |
Other credit contracts | ||
Credit Derivatives | ||
Fair Value Asset (Liability) | $ (17) | $ (14) |
Derivative Instruments and He_9
Derivative Instruments and Hedging Activities - Protection Purchased with CDS (Details) - Protection Purchased - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
CDS | ||
Credit Derivatives | ||
Notional | $ 236,000 | $ 247,000 |
Fair Value Asset (Liability) | (2,312) | 1,359 |
Single name | ||
Credit Derivatives | ||
Notional | 118,000 | 116,000 |
Fair Value Asset (Liability) | (723) | 277 |
Index and basket | ||
Credit Derivatives | ||
Notional | 103,000 | 117,000 |
Fair Value Asset (Liability) | (1,139) | 1,333 |
Tranched index and basket | ||
Credit Derivatives | ||
Notional | 15,000 | 14,000 |
Fair Value Asset (Liability) | $ (450) | $ (251) |
Investment Securities - AFS and
Investment Securities - AFS and HTM Securities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investment Securities [Line Items] | ||
Amortized Cost | $ 105,454 | $ 93,046 |
Gross Unrealized Gains | 1,309 | 114 |
Gross Unrealized Losses | 407 | 2,134 |
Fair Value | 106,356 | 91,026 |
AFS securities | ||
Amortized Cost | 61,952 | 62,275 |
Gross Unrealized Gains | 568 | 62 |
Gross Unrealized Losses | 297 | 1,276 |
Investment securities at fair value | 62,223 | 61,061 |
HTM securities | ||
Amortized Cost | 43,502 | 30,771 |
Gross Unrealized Gains | 741 | 52 |
Gross Unrealized Losses | 110 | 858 |
Fair Value | 44,133 | 29,965 |
U.S. Treasury and agency securities | ||
AFS securities | ||
Amortized Cost | 53,190 | 57,008 |
Gross Unrealized Gains | 473 | 50 |
Gross Unrealized Losses | 211 | 1,153 |
Investment securities at fair value | 53,452 | 55,905 |
HTM securities | ||
Amortized Cost | 42,734 | 30,288 |
Gross Unrealized Gains | 719 | 52 |
Gross Unrealized Losses | 109 | 849 |
Fair Value | 43,344 | 29,491 |
U.S. Treasury securities | ||
AFS securities | ||
Amortized Cost | 32,465 | 36,268 |
Gross Unrealized Gains | 224 | 40 |
Gross Unrealized Losses | 111 | 656 |
Investment securities at fair value | 32,578 | 35,652 |
HTM securities | ||
Amortized Cost | 30,145 | 17,832 |
Gross Unrealized Gains | 568 | 44 |
Gross Unrealized Losses | 52 | 403 |
Fair Value | 30,661 | 17,473 |
U.S. agency securities | ||
AFS securities | ||
Amortized Cost | 20,725 | 20,740 |
Gross Unrealized Gains | 249 | 10 |
Gross Unrealized Losses | 100 | 497 |
Investment securities at fair value | 20,874 | 20,253 |
HTM securities | ||
Amortized Cost | 12,589 | 12,456 |
Gross Unrealized Gains | 151 | 8 |
Gross Unrealized Losses | 57 | 446 |
Fair Value | 12,683 | 12,018 |
Corporate and other debt | ||
AFS securities | ||
Amortized Cost | 8,762 | 5,267 |
Gross Unrealized Gains | 95 | 12 |
Gross Unrealized Losses | 86 | 123 |
Investment securities at fair value | 8,771 | 5,156 |
HTM securities | ||
Amortized Cost | 768 | |
Fair Value | 789 | |
Agency CMBS | ||
AFS securities | ||
Amortized Cost | 4,810 | 1,054 |
Gross Unrealized Gains | 55 | 0 |
Gross Unrealized Losses | 57 | 62 |
Investment securities at fair value | 4,808 | 992 |
Corporate bonds | ||
AFS securities | ||
Amortized Cost | 1,891 | 1,585 |
Gross Unrealized Gains | 17 | 0 |
Gross Unrealized Losses | 1 | 32 |
Investment securities at fair value | 1,907 | 1,553 |
State and municipal securities | ||
AFS securities | ||
Amortized Cost | 481 | 200 |
Gross Unrealized Gains | 22 | 2 |
Gross Unrealized Losses | 0 | 0 |
Investment securities at fair value | 503 | 202 |
FFELP student loan ABS | ||
AFS securities | ||
Amortized Cost | 1,580 | 1,967 |
Gross Unrealized Gains | 1 | 10 |
Gross Unrealized Losses | 28 | 15 |
Investment securities at fair value | $ 1,553 | 1,962 |
HTM securities | ||
Third party guarantees (as a percent) | 95.00% | |
Non-agency CMBS | ||
AFS securities | ||
Amortized Cost | 461 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 14 | |
Investment securities at fair value | 447 | |
HTM securities | ||
Amortized Cost | $ 768 | 483 |
Gross Unrealized Gains | 22 | 0 |
Gross Unrealized Losses | 1 | 9 |
Fair Value | $ 789 | $ 474 |
Investment Securities - Investm
Investment Securities - Investment Securities in an Unrealized Loss Position (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
AFS securities | ||
AFS: Fair Value, Less than 12 Months | $ 10,013 | $ 35,485 |
AFS: Fair Value, 12 Months or Longer | 17,491 | 11,592 |
AFS: Fair Value, Total | 27,504 | 47,077 |
AFS: Gross Unrealized Losses, Less than 12 Months | 75 | 1,008 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 222 | 268 |
AFS: Gross Unrealized Losses, Total | 297 | 1,276 |
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 8,733 | 616 |
HTM: Fair Value, 12 Months or Longer | 3,136 | 21,381 |
HTM: Fair Value, Total | 11,869 | 21,997 |
HTM: Gross Unrealized Losses, Less than 12 Months | 71 | 2 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 39 | 856 |
HTM: Gross Unrealized Losses, Total | 110 | 858 |
Investment securities | ||
Investment securities: Fair Value, Less than 12 Months | 18,746 | 36,101 |
Investment securities: Fair Value, 12 Months or Longer | 20,627 | 32,973 |
Investment securities: Fair Value | 39,373 | 69,074 |
Investment securities: Gross Unrealized Loss, Less than 12 Months | 146 | 1,010 |
Investment securities: Gross Unrealized Loss, 12 Months or Longer | 261 | 1,124 |
Investment securities: Gross Unrealized Loss | 407 | 2,134 |
U.S. government and agency securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 7,434 | 32,841 |
AFS: Fair Value, 12 Months or Longer | 15,601 | 10,136 |
AFS: Fair Value, Total | 23,035 | 42,977 |
AFS: Gross Unrealized Losses, Less than 12 Months | 48 | 924 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 163 | 229 |
AFS: Gross Unrealized Losses, Total | 211 | 1,153 |
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 8,566 | 410 |
HTM: Fair Value, 12 Months or Longer | 3,071 | 21,165 |
HTM: Fair Value, Total | 11,637 | 21,575 |
HTM: Gross Unrealized Losses, Less than 12 Months | 70 | 1 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 39 | 848 |
HTM: Gross Unrealized Losses, Total | 109 | 849 |
U.S. Treasury securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 4,793 | 19,937 |
AFS: Fair Value, 12 Months or Longer | 7,904 | 5,994 |
AFS: Fair Value, Total | 12,697 | 25,931 |
AFS: Gross Unrealized Losses, Less than 12 Months | 28 | 541 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 83 | 115 |
AFS: Gross Unrealized Losses, Total | 111 | 656 |
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 6,042 | 0 |
HTM: Fair Value, 12 Months or Longer | 651 | 11,161 |
HTM: Fair Value, Total | 6,693 | 11,161 |
HTM: Gross Unrealized Losses, Less than 12 Months | 52 | 0 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | 403 |
HTM: Gross Unrealized Losses, Total | 52 | 403 |
U.S. agency securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 2,641 | 12,904 |
AFS: Fair Value, 12 Months or Longer | 7,697 | 4,142 |
AFS: Fair Value, Total | 10,338 | 17,046 |
AFS: Gross Unrealized Losses, Less than 12 Months | 20 | 383 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 80 | 114 |
AFS: Gross Unrealized Losses, Total | 100 | 497 |
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 2,524 | 410 |
HTM: Fair Value, 12 Months or Longer | 2,420 | 10,004 |
HTM: Fair Value, Total | 4,944 | 10,414 |
HTM: Gross Unrealized Losses, Less than 12 Months | 18 | 1 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 39 | 445 |
HTM: Gross Unrealized Losses, Total | 57 | 446 |
Corporate and other debt | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 2,579 | 2,644 |
AFS: Fair Value, 12 Months or Longer | 1,890 | 1,456 |
AFS: Fair Value, Total | 4,469 | 4,100 |
AFS: Gross Unrealized Losses, Less than 12 Months | 27 | 84 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 59 | 39 |
AFS: Gross Unrealized Losses, Total | 86 | 123 |
Agency CMBS | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 2,294 | 808 |
AFS: Fair Value, 12 Months or Longer | 681 | 0 |
AFS: Fair Value, Total | 2,975 | 808 |
AFS: Gross Unrealized Losses, Less than 12 Months | 26 | 62 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 31 | 0 |
AFS: Gross Unrealized Losses, Total | 57 | 62 |
Non-agency CMBS | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 0 | |
AFS: Fair Value, 12 Months or Longer | 446 | |
AFS: Fair Value, Total | 446 | |
AFS: Gross Unrealized Losses, Less than 12 Months | 0 | |
AFS: Gross Unrealized Losses, 12 Months or Longer | 14 | |
AFS: Gross Unrealized Losses, Total | 14 | |
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 167 | 206 |
HTM: Fair Value, 12 Months or Longer | 65 | 216 |
HTM: Fair Value, Total | 232 | 422 |
HTM: Gross Unrealized Losses, Less than 12 Months | 1 | 1 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | 8 |
HTM: Gross Unrealized Losses, Total | 1 | 9 |
Corporate bonds | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 194 | 470 |
AFS: Fair Value, 12 Months or Longer | 44 | 1,010 |
AFS: Fair Value, Total | 238 | 1,480 |
AFS: Gross Unrealized Losses, Less than 12 Months | 1 | 7 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 25 |
AFS: Gross Unrealized Losses, Total | 1 | 32 |
FFELP student loan ABS | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 91 | 1,366 |
AFS: Fair Value, 12 Months or Longer | 1,165 | 0 |
AFS: Fair Value, Total | 1,256 | 1,366 |
AFS: Gross Unrealized Losses, Less than 12 Months | 0 | 15 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 28 | 0 |
AFS: Gross Unrealized Losses, Total | $ 28 | $ 15 |
Investment Securities - Inves_2
Investment Securities - Investment Securities by Contractual Maturity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Amortized Cost | ||
AFS securities: Amortized cost, total | $ 61,952 | $ 62,275 |
HTM securities: Amortized cost, total | 43,502 | 30,771 |
Investment securities: Amortized cost, total | 105,454 | 93,046 |
Fair Value | ||
AFS securities: Fair value, total | 62,223 | 61,061 |
HTM securities: Fair value, total | 44,133 | 29,965 |
Investment securities: Fair value, total | $ 106,356 | 91,026 |
Annualized Average Yield | ||
AFS securities: Annualized average yield, total (as a percent) | 2.00% | |
HTM securities: Annualized average yield, total (as a percent) | 2.30% | |
Investment securities: Annualized average yield, total (as a percent) | 2.20% | |
U.S. government and agency securities | ||
Amortized Cost | ||
AFS securities: Amortized cost, total | $ 53,190 | 57,008 |
HTM securities: Amortized cost, total | 42,734 | 30,288 |
Fair Value | ||
AFS securities: Fair value, total | 53,452 | 55,905 |
HTM securities: Fair value, total | $ 43,344 | 29,491 |
Annualized Average Yield | ||
AFS securities: Annualized average yield, total (as a percent) | 2.00% | |
HTM securities: Annualized average yield, total (as a percent) | 2.30% | |
U.S. Treasury securities | ||
Amortized Cost | ||
AFS securities: Amortized cost, due within 1 year | $ 2,293 | |
AFS securities: Amortized cost, after 1 year through 5 years | 25,919 | |
AFS securities: Amortized cost, after 5 years through 10 years | 4,253 | |
AFS securities: Amortized cost, total | 32,465 | 36,268 |
HTM securities: Amortized cost, due within 1 year | 2,436 | |
HTM securities: Amortized cost, after 1 year through 5 years | 18,026 | |
HTM securities: Amortized cost, after 5 year through 10 years | 8,600 | |
HTM securities: Amortized cost, after 10 years | 1,083 | |
HTM securities: Amortized cost, total | 30,145 | 17,832 |
Fair Value | ||
AFS securities: Fair value, due within 1 year | 2,302 | |
AFS securities: Fair value, after 1 year through 5 years | 26,037 | |
AFS securities: Fair value, after 5 years through 10 years | 4,239 | |
AFS securities: Fair value, total | 32,578 | 35,652 |
HTM securities: Fair value, due within 1 year | 2,452 | |
HTM securities: Fair value, after 1 year through 5 years | 18,254 | |
HTM securities: Fair value, after 5 years through 10 years | 8,842 | |
HTM securities: Fair value, after 10 years | 1,113 | |
HTM securities: Fair value, total | $ 30,661 | 17,473 |
Annualized Average Yield | ||
AFS securities: Annualized average yield, due within 1 year (as a percent) | 2.20% | |
AFS securities: Annualized average yield, after 1 year through 5 years (as a percent) | 1.80% | |
AFS securities: Annualized average yield, after 5 years through 10 years (as a percent) | 1.70% | |
HTM securities: Annualized average yield, due within 1 year (as a percent) | 2.50% | |
HTM securities: Annualized average yield, after 1 years through 5 years (as a percent) | 2.10% | |
HTM securities: Annualized average yield, after 5 years through 10 years (as a percent) | 2.20% | |
HTM securities: Annualized average yield, after 10 year (as a percent) | 2.50% | |
U.S. agency securities | ||
Amortized Cost | ||
AFS securities: Amortized cost, due within 1 year | $ 310 | |
AFS securities: Amortized cost, after 1 year through 5 years | 362 | |
AFS securities: Amortized cost, after 5 years through 10 years | 1,380 | |
AFS securities: Amortized cost, after 10 years | 18,673 | |
AFS securities: Amortized cost, total | 20,725 | 20,740 |
HTM securities: Amortized cost, after 5 year through 10 years | 46 | |
HTM securities: Amortized cost, after 10 years | 12,543 | |
HTM securities: Amortized cost, total | 12,589 | 12,456 |
Fair Value | ||
AFS securities: Fair value, due within 1 year | 310 | |
AFS securities: Fair value, after 1 year through 5 years | 359 | |
AFS securities: Fair value, after 5 years through 10 years | 1,373 | |
AFS securities: Fair value, after 10 years | 18,832 | |
AFS securities: Fair value, total | 20,874 | 20,253 |
HTM securities: Fair value, after 5 years through 10 years | 45 | |
HTM securities: Fair value, after 10 years | 12,638 | |
HTM securities: Fair value, total | $ 12,683 | 12,018 |
Annualized Average Yield | ||
AFS securities: Annualized average yield, due within 1 year (as a percent) | 1.00% | |
AFS securities: Annualized average yield, after 1 year through 5 years (as a percent) | 1.40% | |
AFS securities: Annualized average yield, after 5 years through 10 years (as a percent) | 1.80% | |
AFS securities: Annualized average yield, after 10 years (as a percent) | 2.40% | |
HTM securities: Annualized average yield, after 5 years through 10 years (as a percent) | 1.80% | |
HTM securities: Annualized average yield, after 10 year (as a percent) | 2.60% | |
Corporate and other debt | ||
Amortized Cost | ||
AFS securities: Amortized cost, total | $ 8,762 | 5,267 |
HTM securities: Amortized cost, total | 768 | |
Fair Value | ||
AFS securities: Fair value, total | 8,771 | 5,156 |
HTM securities: Fair value, total | $ 789 | |
Annualized Average Yield | ||
AFS securities: Annualized average yield, total (as a percent) | 2.20% | |
HTM securities: Annualized average yield, total (as a percent) | 4.00% | |
Agency CMBS | ||
Amortized Cost | ||
AFS securities: Amortized cost, after 1 year through 5 years | $ 606 | |
AFS securities: Amortized cost, after 5 years through 10 years | 3,280 | |
AFS securities: Amortized cost, after 10 years | 924 | |
AFS securities: Amortized cost, total | 4,810 | 1,054 |
Fair Value | ||
AFS securities: Fair value, after 1 year through 5 years | 603 | |
AFS securities: Fair value, after 5 years through 10 years | 3,305 | |
AFS securities: Fair value, after 10 years | 900 | |
AFS securities: Fair value, total | $ 4,808 | 992 |
Annualized Average Yield | ||
AFS securities: Annualized average yield, after 1 year through 5 years (as a percent) | 1.80% | |
AFS securities: Annualized average yield, after 5 years through 10 years (as a percent) | 2.50% | |
AFS securities: Annualized average yield, after 10 years (as a percent) | 2.00% | |
Non-agency CMBS | ||
Amortized Cost | ||
AFS securities: Amortized cost, total | 461 | |
HTM securities: Amortized cost, due within 1 year | $ 91 | |
HTM securities: Amortized cost, after 1 year through 5 years | 125 | |
HTM securities: Amortized cost, after 5 year through 10 years | 514 | |
HTM securities: Amortized cost, after 10 years | 38 | |
HTM securities: Amortized cost, total | 768 | 483 |
Fair Value | ||
AFS securities: Fair value, total | 447 | |
HTM securities: Fair value, due within 1 year | 91 | |
HTM securities: Fair value, after 1 year through 5 years | 125 | |
HTM securities: Fair value, after 5 years through 10 years | 532 | |
HTM securities: Fair value, after 10 years | 41 | |
HTM securities: Fair value, total | $ 789 | 474 |
Annualized Average Yield | ||
HTM securities: Annualized average yield, due within 1 year (as a percent) | 4.90% | |
HTM securities: Annualized average yield, after 1 years through 5 years (as a percent) | 5.50% | |
HTM securities: Annualized average yield, after 5 years through 10 years (as a percent) | 5.30% | |
HTM securities: Annualized average yield, after 10 year (as a percent) | 2.10% | |
Corporate bonds | ||
Amortized Cost | ||
AFS securities: Amortized cost, due within 1 year | $ 43 | |
AFS securities: Amortized cost, after 1 year through 5 years | 1,448 | |
AFS securities: Amortized cost, after 5 years through 10 years | 400 | |
AFS securities: Amortized cost, total | 1,891 | 1,585 |
Fair Value | ||
AFS securities: Fair value, due within 1 year | 43 | |
AFS securities: Fair value, after 1 year through 5 years | 1,462 | |
AFS securities: Fair value, after 5 years through 10 years | 402 | |
AFS securities: Fair value, total | $ 1,907 | 1,553 |
Annualized Average Yield | ||
AFS securities: Annualized average yield, due within 1 year (as a percent) | 1.70% | |
AFS securities: Annualized average yield, after 1 year through 5 years (as a percent) | 2.60% | |
AFS securities: Annualized average yield, after 5 years through 10 years (as a percent) | 2.90% | |
State and municipal securities | ||
Amortized Cost | ||
AFS securities: Amortized cost, after 1 year through 5 years | $ 36 | |
AFS securities: Amortized cost, after 5 years through 10 years | 71 | |
AFS securities: Amortized cost, after 10 years | 374 | |
AFS securities: Amortized cost, total | 481 | 200 |
Fair Value | ||
AFS securities: Fair value, after 1 year through 5 years | 37 | |
AFS securities: Fair value, after 5 years through 10 years | 72 | |
AFS securities: Fair value, after 10 years | 394 | |
AFS securities: Fair value, total | $ 503 | 202 |
Annualized Average Yield | ||
AFS securities: Annualized average yield, after 1 year through 5 years (as a percent) | 3.10% | |
AFS securities: Annualized average yield, after 5 years through 10 years (as a percent) | 2.20% | |
AFS securities: Annualized average yield, after 10 years (as a percent) | 4.70% | |
FFELP student loan ABS | ||
Amortized Cost | ||
AFS securities: Amortized cost, after 1 year through 5 years | $ 71 | |
AFS securities: Amortized cost, after 5 years through 10 years | 377 | |
AFS securities: Amortized cost, after 10 years | 1,132 | |
AFS securities: Amortized cost, total | 1,580 | 1,967 |
Fair Value | ||
AFS securities: Fair value, after 1 year through 5 years | 69 | |
AFS securities: Fair value, after 5 years through 10 years | 367 | |
AFS securities: Fair value, after 10 years | 1,117 | |
AFS securities: Fair value, total | $ 1,553 | $ 1,962 |
Annualized Average Yield | ||
AFS securities: Annualized average yield, after 1 year through 5 years (as a percent) | 0.80% | |
AFS securities: Annualized average yield, after 5 years through 10 years (as a percent) | 0.80% | |
AFS securities: Annualized average yield, after 10 years (as a percent) | 1.20% |
Investment Securities - Gross R
Investment Securities - Gross Realized Gains and Losses on Sales of AFS Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AFS securities | |||
Gross realized gains | $ 113 | $ 12 | $ 46 |
Gross realized (losses) | (10) | (4) | (11) |
Total | $ 103 | $ 8 | $ 35 |
Collateralized Transactions - O
Collateralized Transactions - Offsetting of Certain Collateralized Transactions (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Securities purchased under agreements to resell | ||
Gross Amounts | $ 247,545 | $ 262,976 |
Amounts Offset | (159,321) | (164,454) |
Balance Sheet Net Amounts | 88,224 | 98,522 |
Amounts Not Offset | (85,200) | (95,610) |
Net Amounts | 3,024 | 2,912 |
Securities borrowed | ||
Gross Amounts | 109,528 | 134,711 |
Amounts Offset | (2,979) | (18,398) |
Balance Sheet Net Amounts | 106,549 | 116,313 |
Amounts Not Offset | (101,850) | (112,551) |
Net Amounts | 4,699 | 3,762 |
Securities sold under agreements to repurchase | ||
Gross Amounts | 213,519 | 214,213 |
Amounts Offset | (159,319) | (164,454) |
Balance Sheet Net Amounts | 54,200 | 49,759 |
Amounts Not Offset | (44,549) | (41,095) |
Net Amounts | 9,651 | 8,664 |
Securities loaned | ||
Gross Amounts | 11,487 | 30,306 |
Amounts Offset | (2,981) | (18,398) |
Balance Sheet Net Amounts | 8,506 | 11,908 |
Amounts Not Offset | (8,324) | (11,677) |
Net Amounts | 182 | 231 |
Net amounts for which master netting agreements are not in place or may not be legally enforceable | ||
Securities purchased under agreements to resell | 2,255 | 2,579 |
Securities borrowed | 1,181 | 724 |
Securities sold under agreements to repurchase | 8,033 | 6,762 |
Securities loaned | $ 101 | $ 191 |
Collateralized Transactions - G
Collateralized Transactions - Gross Secured Financing Balances (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | $ 213,519 | $ 214,213 |
Securities loaned | 11,487 | 30,306 |
Total included in the offsetting disclosure | 225,006 | 244,519 |
Trading liabilities— Obligation to return securities received as collateral | 23,877 | 17,594 |
Total | 248,883 | 262,113 |
U.S. government and agency securities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 68,895 | 68,487 |
State and municipal securities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 905 | 925 |
Other sovereign government obligations | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 109,414 | 120,432 |
Securities loaned | 3,026 | 19,021 |
ABS | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 2,218 | 3,017 |
Corporate and other debt | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 6,066 | 8,719 |
Corporate equities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 25,563 | 12,079 |
Securities loaned | 8,422 | 10,800 |
Trading liabilities— Obligation to return securities received as collateral | 23,873 | 17,594 |
Other | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 458 | 554 |
Securities loaned | 39 | 485 |
Trading liabilities— Obligation to return securities received as collateral | 4 | 0 |
Overnight and Open | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 67,158 | 56,503 |
Securities loaned | 2,378 | 18,397 |
Total included in the offsetting disclosure | 69,536 | 74,900 |
Trading liabilities— Obligation to return securities received as collateral | 23,877 | 17,594 |
Total | 93,413 | 92,494 |
Less than 30 Days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 81,300 | 93,427 |
Securities loaned | 3,286 | 3,609 |
Total included in the offsetting disclosure | 84,586 | 97,036 |
Trading liabilities— Obligation to return securities received as collateral | 0 | 0 |
Total | 84,586 | 97,036 |
30-90 Days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 26,904 | 35,692 |
Securities loaned | 516 | 1,985 |
Total included in the offsetting disclosure | 27,420 | 37,677 |
Trading liabilities— Obligation to return securities received as collateral | 0 | 0 |
Total | 27,420 | 37,677 |
Over 90 Days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 38,157 | 28,591 |
Securities loaned | 5,307 | 6,315 |
Total included in the offsetting disclosure | 43,464 | 34,906 |
Trading liabilities— Obligation to return securities received as collateral | 0 | 0 |
Total | $ 43,464 | $ 34,906 |
Collateralized Transactions - A
Collateralized Transactions - Assets Loaned or Pledged (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Collateralized Agreements [Abstract] | ||
Trading assets | $ 41,201 | $ 39,430 |
Loans (gross of allowance for loan losses) | 750 | 0 |
Total | $ 41,951 | $ 39,430 |
Collateralized Transactions - C
Collateralized Transactions - Collateral Received (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Collateralized Agreements [Abstract] | ||
Collateral received with right to sell or repledge | $ 679,280 | $ 639,610 |
Collateral that was sold or repledged1 | $ 539,412 | $ 487,983 |
Collateralized Transactions - R
Collateralized Transactions - Restricted Cash and Segregated Securities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Collateralized Agreements [Abstract] | |||
Restricted cash | $ 32,512 | $ 35,356 | $ 34,231 |
Segregated securities | 25,061 | 26,877 | |
Total | $ 57,573 | $ 62,233 |
Collateralized Transactions -_2
Collateralized Transactions - Concentration Based on the Firm's Total Assets (Details) - U.S. government and agency securities and other sovereign government obligations | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Trading assets | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Concentration risk (as a percent) | 10.00% | 12.00% |
Off balance sheet—Collateral received | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Concentration risk (as a percent) | 12.00% | 17.00% |
Collateralized Transactions -_3
Collateralized Transactions - Customer Margin Lending (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Collateralized Agreements [Abstract] | ||
Customer receivables representing margin loans | $ 31,916 | $ 26,225 |
Loans, Lending Commitments an_3
Loans, Lending Commitments and Allowance for Credit Losses - Loans by Type (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans Held for Investment | ||||
Loans held for investment, gross | $ 118,409 | $ 100,053 | ||
Allowance for loan losses | (349) | (238) | $ (224) | $ (274) |
Loans held for investment, net | 118,060 | 99,815 | ||
Loans Held for Sale | ||||
Loans held for sale, gross | 12,577 | 15,764 | ||
Allowance for loan losses | 0 | 0 | ||
Loans held for sale, net | 12,577 | 15,764 | ||
Total Loans | ||||
Total loans, gross | 130,986 | 115,817 | ||
Allowance for loan losses | (349) | (238) | ||
Total loans, net | 130,637 | 115,579 | ||
Fixed rate loans, net | 22,716 | 15,632 | ||
Floating or adjustable rate loans, net | 107,921 | 99,947 | ||
Loans to non-U.S. borrowers, net | 21,617 | 17,568 | ||
Corporate | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 48,756 | 36,909 | ||
Allowance for loan losses | (241) | (144) | (126) | (195) |
Loans Held for Sale | ||||
Loans held for sale, gross | 10,515 | 13,886 | ||
Total Loans | ||||
Total loans, gross | 59,271 | 50,795 | ||
Consumer | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 31,610 | 27,868 | ||
Allowance for loan losses | (8) | (7) | (4) | (4) |
Loans Held for Sale | ||||
Loans held for sale, gross | 0 | 0 | ||
Total Loans | ||||
Total loans, gross | 31,610 | 27,868 | ||
Residential real estate | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 30,184 | 27,466 | ||
Allowance for loan losses | (25) | (20) | (24) | (20) |
Loans Held for Sale | ||||
Loans held for sale, gross | 13 | 22 | ||
Total Loans | ||||
Total loans, gross | 30,197 | 27,488 | ||
Commercial real estate | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 7,859 | 7,810 | ||
Allowance for loan losses | (75) | (67) | $ (70) | $ (55) |
Loans Held for Sale | ||||
Loans held for sale, gross | 2,049 | 1,856 | ||
Total Loans | ||||
Total loans, gross | $ 9,908 | $ 9,666 |
Loans, Lending Commitments an_4
Loans, Lending Commitments and Allowance for Credit Losses - Loans Held for Investment before Allowance by Credit Quality (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | $ 118,409 | $ 100,053 |
Corporate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 48,756 | 36,909 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 31,610 | 27,868 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 30,184 | 27,466 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 7,859 | 7,810 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 117,010 | 98,845 |
Pass | Corporate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 47,681 | 36,217 |
Pass | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 31,605 | 27,863 |
Pass | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 30,060 | 27,387 |
Pass | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 7,664 | 7,378 |
Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 495 | 809 |
Special mention | Corporate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 464 | 492 |
Special mention | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 0 | 5 |
Special mention | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 28 | 0 |
Special mention | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 3 | 312 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 898 | 399 |
Substandard | Corporate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 605 | 200 |
Substandard | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 5 | 0 |
Substandard | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 96 | 79 |
Substandard | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 192 | 120 |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 6 | 0 |
Doubtful | Corporate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 6 | 0 |
Doubtful | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 0 | 0 |
Doubtful | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | 0 | 0 |
Doubtful | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, gross | $ 0 | $ 0 |
Loans, Lending Commitments an_5
Loans, Lending Commitments and Allowance for Credit Losses - Impaired Loans and Lending Commitments before Allowance (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Loans | ||
With allowance | $ 353 | $ 24 |
Without allowance | 124 | 101 |
Total impaired loans | 477 | 125 |
UPB | 489 | 133 |
Lending commitments | ||
With allowance | 18 | 19 |
Without allowance | 32 | 34 |
Total impaired lending commitments | 50 | 53 |
Corporate | ||
Loans | ||
With allowance | 268 | 24 |
Without allowance | 32 | 32 |
Total impaired loans | 300 | 56 |
UPB | 309 | 63 |
Lending commitments | ||
With allowance | 4 | 19 |
Without allowance | 32 | 34 |
Total impaired lending commitments | 36 | 53 |
Consumer | ||
Loans | ||
With allowance | 0 | 0 |
Without allowance | 5 | 0 |
Total impaired loans | 5 | 0 |
UPB | 5 | 0 |
Lending commitments | ||
With allowance | 0 | 0 |
Without allowance | 0 | 0 |
Total impaired lending commitments | 0 | 0 |
Residential real estate | ||
Loans | ||
With allowance | 0 | 0 |
Without allowance | 87 | 69 |
Total impaired loans | 87 | 69 |
UPB | 90 | 70 |
Lending commitments | ||
With allowance | 0 | 0 |
Without allowance | 0 | 0 |
Total impaired lending commitments | 0 | 0 |
Commercial real estate | ||
Loans | ||
With allowance | 85 | 0 |
Without allowance | 0 | 0 |
Total impaired loans | 85 | 0 |
UPB | 85 | 0 |
Lending commitments | ||
With allowance | 14 | 0 |
Without allowance | 0 | 0 |
Total impaired lending commitments | $ 14 | $ 0 |
Loans, Lending Commitments an_6
Loans, Lending Commitments and Allowance for Credit Losses - Impaired Loans and Total Allowance by Region (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Impaired Loans | ||
Impaired loans | $ 477 | $ 125 |
Total Allowance for loan losses | 349 | 238 |
Americas | ||
Impaired Loans | ||
Impaired loans | 392 | 125 |
Total Allowance for loan losses | 270 | 193 |
EMEA | ||
Impaired Loans | ||
Impaired loans | 85 | 0 |
Total Allowance for loan losses | 76 | 42 |
Asia | ||
Impaired Loans | ||
Impaired loans | 0 | 0 |
Total Allowance for loan losses | $ 3 | $ 3 |
Loans, Lending Commitments an_7
Loans, Lending Commitments and Allowance for Credit Losses - Troubled Debt Restructurings (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Troubled Debt Restructurings | ||
Loans | $ 92 | $ 38 |
Lending commitments | 32 | 45 |
Allowance for loan losses and lending commitments | $ 16 | $ 4 |
Loans, Lending Commitments an_8
Loans, Lending Commitments and Allowance for Credit Losses - Activity of Allowance for Loan Losses and Lending Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan losses rollforward | |||
Beginning balance | $ 238 | $ 224 | $ 274 |
Gross charge-offs | (2) | (6) | (75) |
Recoveries | 0 | 54 | 1 |
Net recoveries (charge-offs) | (2) | 48 | (74) |
Provision (release) | 120 | (24) | 22 |
Other | (7) | (10) | 2 |
Ending balance | 349 | 238 | 224 |
Inherent | 318 | 233 | 217 |
Specific | 31 | 5 | 7 |
Allowance for lending commitments rollforward | |||
Beginning balance | 203 | 198 | 190 |
Provision (release) | 42 | 9 | 7 |
Other | (4) | (4) | 1 |
Ending balance | 241 | 203 | 198 |
Inherent | 239 | 198 | 196 |
Specific | 2 | 5 | 2 |
Corporate | |||
Allowance for loan losses rollforward | |||
Beginning balance | 144 | 126 | 195 |
Gross charge-offs | 0 | (5) | (75) |
Recoveries | 0 | 54 | 1 |
Net recoveries (charge-offs) | 0 | 49 | (74) |
Provision (release) | 104 | (29) | 5 |
Other | (7) | (2) | 0 |
Ending balance | 241 | 144 | 126 |
Inherent | 212 | 139 | 119 |
Specific | 29 | 5 | 7 |
Allowance for lending commitments rollforward | |||
Beginning balance | 198 | 194 | 185 |
Provision (release) | 38 | 7 | 8 |
Other | (4) | (3) | 1 |
Ending balance | 232 | 198 | 194 |
Inherent | 230 | 193 | 192 |
Specific | 2 | 5 | 2 |
Consumer | |||
Allowance for loan losses rollforward | |||
Beginning balance | 7 | 4 | 4 |
Gross charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net recoveries (charge-offs) | 0 | 0 | 0 |
Provision (release) | 1 | 3 | 0 |
Other | 0 | 0 | 0 |
Ending balance | 8 | 7 | 4 |
Inherent | 8 | 7 | 4 |
Specific | 0 | 0 | 0 |
Allowance for lending commitments rollforward | |||
Beginning balance | 2 | 1 | 1 |
Provision (release) | 0 | 1 | 0 |
Other | 0 | 0 | 0 |
Ending balance | 2 | 2 | 1 |
Inherent | 2 | 2 | 1 |
Specific | 0 | 0 | 0 |
Residential real estate | |||
Allowance for loan losses rollforward | |||
Beginning balance | 20 | 24 | 20 |
Gross charge-offs | (2) | (1) | 0 |
Recoveries | 0 | 0 | 0 |
Net recoveries (charge-offs) | (2) | (1) | 0 |
Provision (release) | 7 | (3) | 4 |
Other | 0 | 0 | 0 |
Ending balance | 25 | 20 | 24 |
Inherent | 25 | 20 | 24 |
Specific | 0 | 0 | 0 |
Allowance for lending commitments rollforward | |||
Beginning balance | 0 | 0 | 0 |
Provision (release) | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Inherent | 0 | 0 | 0 |
Specific | 0 | 0 | 0 |
Commercial real estate | |||
Allowance for loan losses rollforward | |||
Beginning balance | 67 | 70 | 55 |
Gross charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net recoveries (charge-offs) | 0 | 0 | 0 |
Provision (release) | 8 | 5 | 13 |
Other | 0 | (8) | 2 |
Ending balance | 75 | 67 | 70 |
Inherent | 73 | 67 | 70 |
Specific | 2 | 0 | 0 |
Allowance for lending commitments rollforward | |||
Beginning balance | 3 | 3 | 4 |
Provision (release) | 4 | 1 | (1) |
Other | 0 | (1) | 0 |
Ending balance | 7 | 3 | 3 |
Inherent | 7 | 3 | 3 |
Specific | $ 0 | $ 0 | $ 0 |
Loans, Lending Commitments an_9
Loans, Lending Commitments and Allowance for Credit Losses - Employee Loans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Balance | $ 2,980 | $ 3,415 |
Allowance for loan losses | (61) | (63) |
Balance, net | $ 2,919 | $ 3,352 |
Remaining repayment term, weighted average in years | 4 years 9 months 18 days | 4 years 3 months 18 days |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill Roll Forward | ||
Balance at beginning of period | $ 6,688 | $ 6,597 |
Foreign currency and other | (14) | (21) |
Acquired | 469 | 112 |
Balance at end of period | 7,143 | 6,688 |
Goodwill, Impaired, Accumulated Impairment Loss | ||
Accumulated impairments | 700 | |
IS | ||
Goodwill Roll Forward | ||
Balance at beginning of period | 274 | 295 |
Foreign currency and other | (13) | (21) |
Acquired | 0 | 0 |
Balance at end of period | 261 | 274 |
Goodwill, Impaired, Accumulated Impairment Loss | ||
Accumulated impairments | 673 | |
WM | ||
Goodwill Roll Forward | ||
Balance at beginning of period | 5,533 | 5,533 |
Foreign currency and other | (1) | 0 |
Acquired | 469 | 0 |
Balance at end of period | 6,001 | 5,533 |
Goodwill, Impaired, Accumulated Impairment Loss | ||
Accumulated impairments | 0 | |
IM | ||
Goodwill Roll Forward | ||
Balance at beginning of period | 881 | 769 |
Foreign currency and other | 0 | 0 |
Acquired | 0 | 112 |
Balance at end of period | 881 | $ 881 |
Goodwill, Impaired, Accumulated Impairment Loss | ||
Accumulated impairments | $ 27 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Net Amortizable Intangible Assets Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $ 2,158 | $ 2,445 |
Acquired | 273 | 66 |
Disposals | (29) | (6) |
Amortization expense | (314) | (344) |
Other | 19 | (3) |
Ending balance | 2,107 | 2,158 |
IS | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 270 | 349 |
Acquired | 3 | 0 |
Disposals | (29) | (6) |
Amortization expense | (35) | (70) |
Other | 18 | (3) |
Ending balance | 227 | 270 |
WM | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 1,828 | 2,092 |
Acquired | 270 | 0 |
Disposals | 0 | 0 |
Amortization expense | (271) | (264) |
Other | 1 | 0 |
Ending balance | 1,828 | 1,828 |
IM | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 60 | 4 |
Acquired | 0 | 66 |
Disposals | 0 | 0 |
Amortization expense | (8) | (10) |
Other | 0 | 0 |
Ending balance | $ 52 | $ 60 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Gross Amortizable Intangible Assets by Type (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Amortizable Intangible Assets | ||
Gross Carrying Amount | $ 5,311 | $ 5,035 |
Accumulated Amortization | 3,204 | 2,877 |
Estimated annual amortization expense for the next five years | 307 | |
Mortgage servicing rights excluded | 5 | |
Tradenames | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 291 | 286 |
Accumulated Amortization | 71 | 60 |
Customer relationships | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 4,321 | 4,067 |
Accumulated Amortization | 2,703 | 2,446 |
Management contracts | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 482 | 507 |
Accumulated Amortization | 327 | 311 |
Other | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 217 | 175 |
Accumulated Amortization | $ 103 | $ 60 |
Other Assets - Equity Method _3
Other Assets - Equity Method Investments and Leases - Equity Method Investments (Details) - IM - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments | |||
Investments | $ 2,363 | $ 2,432 | |
Income (loss) | (81) | 20 | $ (34) |
Impairment of equity method investment | $ 41 | $ 46 | $ 53 |
Other Assets - Equity Method _4
Other Assets - Equity Method Investments and Leases - Investees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd | |||
Equity Method Investments | |||
Income from equity method investments | $ 17 | $ 105 | $ 123 |
Other Assets - Equity Method _5
Other Assets - Equity Method Investments and Leases - Narrative (Details) | Dec. 31, 2019 |
Morgan Stanley MUFG Securities Co., Ltd. | |
Equity Method Investments | |
Voting/ economic interest (as a percent) | 40.00% |
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd | |
Equity Method Investments | |
Voting/ economic interest (as a percent) | 40.00% |
MUFG | Morgan Stanley MUFG Securities Co., Ltd. | |
Equity Method Investments | |
Voting/ economic interest (as a percent) | 60.00% |
IS | Morgan Stanley MUFG Securities Co., Ltd. | |
Equity Method Investments | |
Voting/ economic interest (as a percent) | 51.00% |
Other Assets - Equity Method _6
Other Assets - Equity Method Investments and Leases - Balance Sheet Amounts Related to Leases (Details) $ in Millions | Dec. 31, 2019USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other assets—ROU assets | $ 3,998 |
Other liabilities and accrued expenses—Lease liabilities | $ 4,778 |
Weighted average: | |
Remaining lease term, in years | 9 years 8 months 12 days |
Discount rate (as a percent) | 3.60% |
Other Assets - Equity Method _7
Other Assets - Equity Method Investments and Leases - Lease Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
2020 | $ 763 |
2021 | 703 |
2022 | 646 |
2023 | 593 |
2024 | 524 |
Thereafter | 2,845 |
Total undiscounted cash flows | 6,074 |
Imputed interest | (1,296) |
Amount on balance sheet | 4,778 |
Committed leases not yet commenced | $ 55 |
Other Assets - Equity Method _8
Other Assets - Equity Method Investments and Leases - Lease Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Fixed costs | $ 670 |
Variable costs | 152 |
Less: Sublease income | (6) |
Total lease cost, net | $ 816 |
Other Assets - Equity Method _9
Other Assets - Equity Method Investments and Leases - Cash Flows Statement Supplemental Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Cash outflows—Lease liabilities | $ 685 |
Non-cash—ROU assets recorded for new and modified leases | $ 514 |
Other Assets - Equity Method_10
Other Assets - Equity Method Investments and Leases - Minimum Future Lease Commitments (Details) - Premises and Equipment $ in Millions | Dec. 31, 2018USD ($) |
Minimum Future Lease Commitments | |
2019 | $ 677 |
2020 | 657 |
2021 | 602 |
2022 | 555 |
2023 | 507 |
Thereafter | 2,639 |
Total undiscounted cash flows | 5,637 |
Total minimum rental income to be received in the future under non-cancelable operating subleases | $ 7 |
Other Assets - Equity Method_11
Other Assets - Equity Method Investments and Leases - Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Premises and Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Rent expense | $ 753 | $ 704 |
Deposits - Summary (Details)
Deposits - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Savings and demand deposits | $ 149,465 | $ 154,897 |
Time deposits | 40,891 | 32,923 |
Total | 190,356 | 187,820 |
Deposits subject to FDIC insurance | 149,966 | 144,515 |
Time deposits that equal or exceed the FDIC insurance limit | 12 | 11 |
Time Deposit Maturities | ||
2020 | 20,481 | |
2021 | 10,567 | |
2022 | 3,507 | |
2023 | 3,231 | |
2024 | 2,465 | |
Thereafter | 640 | |
Total | $ 40,891 | $ 32,923 |
Borrowings and Other Secured _3
Borrowings and Other Secured Financings - Maturities and Terms of Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Original maturities of one year or less: | |||
Next 12 months | $ 2,567 | $ 1,545 | |
Original maturities greater than one year: | |||
2019 | 0 | 24,694 | |
2020 | 20,402 | 21,280 | |
2021 | 26,085 | 24,642 | |
2022 | 19,888 | 16,785 | |
2023 | 14,615 | 13,938 | |
2024 | 21,106 | 16,405 | |
Thereafter | 87,964 | 70,373 | |
Total | 190,060 | 188,117 | |
Total borrowings | $ 192,627 | $ 189,662 | |
Weighted average coupon at period end (as a percent) | 3.40% | 3.50% | 3.30% |
Parent Company | |||
Original maturities greater than one year: | |||
Total | $ 147,708 | $ 156,582 | |
Total borrowings | 148,207 | $ 156,582 | |
Parent Company | Fixed Rate | |||
Original maturities of one year or less: | |||
Next 12 months | 500 | ||
Original maturities greater than one year: | |||
2019 | 0 | ||
2020 | 10,909 | ||
2021 | 13,616 | ||
2022 | 6,576 | ||
2023 | 8,632 | ||
2024 | 13,360 | ||
Thereafter | 52,941 | ||
Total | 106,034 | ||
Total borrowings | $ 106,534 | ||
Weighted average coupon at period end (as a percent) | 3.60% | ||
Parent Company | Variable Rate | |||
Original maturities of one year or less: | |||
Next 12 months | $ 0 | ||
Original maturities greater than one year: | |||
2019 | 0 | ||
2020 | 4,319 | ||
2021 | 7,823 | ||
2022 | 9,508 | ||
2023 | 3,147 | ||
2024 | 2,028 | ||
Thereafter | 14,436 | ||
Total | 41,261 | ||
Total borrowings | $ 41,261 | ||
Weighted average coupon at period end (as a percent) | 2.10% | ||
Subsidiaries | Fixed Rate | |||
Original maturities of one year or less: | |||
Next 12 months | $ 0 | ||
Original maturities greater than one year: | |||
2019 | 0 | ||
2020 | 14 | ||
2021 | 18 | ||
2022 | 16 | ||
2023 | 14 | ||
2024 | 14 | ||
Thereafter | 125 | ||
Total | 201 | ||
Total borrowings | $ 201 | ||
Weighted average coupon at period end (as a percent) | 6.60% | ||
Subsidiaries | Variable Rate | |||
Original maturities of one year or less: | |||
Next 12 months | $ 2,067 | ||
Original maturities greater than one year: | |||
2019 | 0 | ||
2020 | 5,160 | ||
2021 | 4,628 | ||
2022 | 3,788 | ||
2023 | 2,822 | ||
2024 | 5,704 | ||
Thereafter | 20,462 | ||
Total | 42,564 | ||
Total borrowings | $ 44,631 |
Borrowings and Other Secured _4
Borrowings and Other Secured Financings - Borrowings with Maturities Greater than One Year (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Senior | $ 179,519 | $ 178,027 |
Subordinated | 10,541 | 10,090 |
Total | $ 190,060 | $ 188,117 |
Weighted average stated maturity, in years | 6 years 10 months 24 days | 6 years 6 months |
Borrowings and Other Secured _5
Borrowings and Other Secured Financings - Senior Debt Subject to Put Options or Liquidity Obligations (Details) - Senior Debt - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Put options embedded in debt agreements | $ 290 | $ 520 |
Liquidity obligations | $ 1,344 | $ 1,284 |
Borrowings and Other Secured _6
Borrowings and Other Secured Financings - Subordinated Debt (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Contractual weighted average coupon (as a percent) | 4.50% | 4.50% |
Borrowings and Other Secured _7
Borrowings and Other Secured Financings - Rates for Long-Term Borrowings (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | |||
Contractual weighted average coupon (as a percent) | 3.40% | 3.50% | 3.30% |
Effective weighted average coupon after swaps (as a percent) | 2.90% | 3.60% | 2.50% |
Borrowings and Other Secured _8
Borrowings and Other Secured Financings - Other Secured Financings (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Secured financings with original maturities one year or less | $ 7,103 | $ 2,036 |
Secured financings with original maturities greater than one year | 6,480 | 6,772 |
Transfers of assets accounted for as secured financings | 1,115 | 658 |
Total other secured financings | $ 14,698 | $ 9,466 |
Borrowings and Other Secured _9
Borrowings and Other Secured Financings - Maturities and Terms of Secured Financings (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Original maturities of one year or less: | ||
Next 12 months | $ 2,567 | $ 1,545 |
Original maturities greater than one year: | ||
2019 | 0 | 24,694 |
2020 | 20,402 | 21,280 |
2021 | 26,085 | 24,642 |
2022 | 19,888 | 16,785 |
2023 | 14,615 | 13,938 |
2024 | 21,106 | 16,405 |
Thereafter | 87,964 | 70,373 |
Total | 190,060 | 188,117 |
Secured Financings | ||
Original maturities of one year or less: | ||
Next 12 months | 7,103 | 2,036 |
Original maturities greater than one year: | ||
2019 | 0 | 5,900 |
2020 | 1,663 | 599 |
2021 | 1,110 | 1 |
2022 | 227 | 86 |
2023 | 2,655 | 26 |
2024 | 12 | 12 |
Thereafter | 813 | 148 |
Total | $ 6,480 | $ 6,772 |
Weighted average coupon at period end (as a percent) | 2.40% | 2.50% |
Secured Financings | Fixed Rate | ||
Original maturities of one year or less: | ||
Next 12 months | $ 2,785 | |
Original maturities greater than one year: | ||
2019 | 0 | |
2020 | 764 | |
2021 | 698 | |
2022 | 227 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 356 | |
Total | $ 2,045 | |
Weighted average coupon at period end (as a percent) | 0.80% | |
Secured Financings | Variable Rate | ||
Original maturities of one year or less: | ||
Next 12 months | $ 4,318 | |
Original maturities greater than one year: | ||
2019 | 0 | |
2020 | 899 | |
2021 | 412 | |
2022 | 0 | |
2023 | 2,655 | |
2024 | 12 | |
Thereafter | 457 | |
Total | $ 4,435 | |
Weighted average coupon at period end (as a percent) | 2.50% |
Borrowings and Other Secured_10
Borrowings and Other Secured Financings - Failed Sales by Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2019 | $ 0 | $ 40 |
2020 | 208 | 62 |
2021 | 225 | 29 |
2022 | 46 | 33 |
2023 | 334 | 0 |
2024 | 0 | 0 |
Thereafter | 302 | 494 |
Total | $ 1,115 | $ 658 |
Commitments, Guarantees and C_3
Commitments, Guarantees and Contingencies - Commitments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | $ 96,563 |
1-3 (years) | 35,448 |
3-5 (years) | 48,076 |
Over 5 (years) | 17,248 |
Total | 197,335 |
Forward-starting secured financing receivables | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 63,313 |
1-3 (years) | 223 |
3-5 (years) | 0 |
Over 5 (years) | 11,601 |
Total | 75,137 |
Forward-starting secured financing receivables settled within three business days of the balance sheet date | 52,438 |
Underwriting | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 637 |
1-3 (years) | 0 |
3-5 (years) | 0 |
Over 5 (years) | 0 |
Total | 637 |
Investment activities | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 706 |
1-3 (years) | 275 |
3-5 (years) | 60 |
Over 5 (years) | 262 |
Total | 1,303 |
Letters of credit and other financial guarantees | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 186 |
1-3 (years) | 2 |
3-5 (years) | 0 |
Over 5 (years) | 2 |
Total | 190 |
Corporate | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 23,507 |
1-3 (years) | 34,542 |
3-5 (years) | 47,924 |
Over 5 (years) | 5,110 |
Total | 111,083 |
Corporate lending commitments participated to third parties | 8,003 |
Consumer | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 7,835 |
1-3 (years) | 28 |
3-5 (years) | 4 |
Over 5 (years) | 0 |
Total | 7,867 |
Residential and Commercial real estate | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 379 |
1-3 (years) | 378 |
3-5 (years) | 88 |
Over 5 (years) | 273 |
Total | $ 1,118 |
Commitments, Guarantees and C_4
Commitments, Guarantees and Contingencies - Obligations under Guarantee Arrangements (Details) $ in Millions | Dec. 31, 2019USD ($) |
Credit derivatives | |
Guarantees | |
Maximum Potential Payout/Notional | $ 215,719 |
Carrying amount: asset | 1,703 |
Credit derivatives | Less Than 1 (Year) | |
Guarantees | |
Maximum Potential Payout/Notional | 36,334 |
Credit derivatives | 1 - 3 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 37,080 |
Credit derivatives | 3 - 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 111,758 |
Credit derivatives | Over 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 30,547 |
Other credit contracts | |
Guarantees | |
Maximum Potential Payout/Notional | 117 |
Carrying amount: liability | (17) |
Other credit contracts | Less Than 1 (Year) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Other credit contracts | 1 - 3 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Other credit contracts | 3 - 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Other credit contracts | Over 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 117 |
Non-credit derivatives | |
Guarantees | |
Maximum Potential Payout/Notional | 3,923,433 |
Carrying amount: liability | (45,794) |
Non-credit derivatives | Less Than 1 (Year) | |
Guarantees | |
Maximum Potential Payout/Notional | 1,590,947 |
Non-credit derivatives | 1 - 3 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 1,240,195 |
Non-credit derivatives | 3 - 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 393,248 |
Non-credit derivatives | Over 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 699,043 |
Standby letters of credit and other financial guarantees issued | |
Guarantees | |
Maximum Potential Payout/Notional | 7,705 |
Carrying amount: asset | 226 |
Standby letters of credit | 700 |
Standby letters of credit and other financial guarantees issued | Less Than 1 (Year) | |
Guarantees | |
Maximum Potential Payout/Notional | 1,282 |
Standby letters of credit and other financial guarantees issued | 1 - 3 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 836 |
Standby letters of credit and other financial guarantees issued | 3 - 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 1,386 |
Standby letters of credit and other financial guarantees issued | Over 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 4,201 |
Market value guarantees | |
Guarantees | |
Maximum Potential Payout/Notional | 158 |
Carrying amount: asset | 0 |
Market value guarantees | Less Than 1 (Year) | |
Guarantees | |
Maximum Potential Payout/Notional | 76 |
Market value guarantees | 1 - 3 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 82 |
Market value guarantees | 3 - 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Market value guarantees | Over 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Liquidity facilities | |
Guarantees | |
Maximum Potential Payout/Notional | 4,599 |
Carrying amount: asset | 6 |
Liquidity facilities | Less Than 1 (Year) | |
Guarantees | |
Maximum Potential Payout/Notional | 4,599 |
Liquidity facilities | 1 - 3 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Liquidity facilities | 3 - 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Liquidity facilities | Over 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Whole loan sales guarantees | |
Guarantees | |
Maximum Potential Payout/Notional | 23,196 |
Carrying amount: liability | 0 |
Whole loan sales guarantees | Less Than 1 (Year) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Whole loan sales guarantees | 1 - 3 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Whole loan sales guarantees | 3 - 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Whole loan sales guarantees | Over 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 23,196 |
Securitization representations and warranties | |
Guarantees | |
Maximum Potential Payout/Notional | 67,928 |
Carrying amount: liability | (42) |
Securitization representations and warranties | Less Than 1 (Year) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Securitization representations and warranties | 1 - 3 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Securitization representations and warranties | 3 - 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Securitization representations and warranties | Over 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 67,928 |
General partner guarantees | |
Guarantees | |
Maximum Potential Payout/Notional | 270 |
Carrying amount: liability | (42) |
General partner guarantees | Less Than 1 (Year) | |
Guarantees | |
Maximum Potential Payout/Notional | 59 |
General partner guarantees | 1 - 3 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 128 |
General partner guarantees | 3 - 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 12 |
General partner guarantees | Over 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 71 |
Client clearing guarantees | |
Guarantees | |
Maximum Potential Payout/Notional | 18,565 |
Carrying amount: liability | 0 |
Client clearing guarantees | Less Than 1 (Year) | |
Guarantees | |
Maximum Potential Payout/Notional | 18,565 |
Client clearing guarantees | 1 - 3 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Client clearing guarantees | 3 - 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | 0 |
Client clearing guarantees | Over 5 (Years) | |
Guarantees | |
Maximum Potential Payout/Notional | $ 0 |
Commitments, Guarantees and C_5
Commitments, Guarantees and Contingencies - Legal Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Legal expenses | $ 221 | $ 206 | $ 342 |
Commitments, Guarantees and C_6
Commitments, Guarantees and Contingencies - Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | |
Loss Contingencies | |||
Derivative assets | $ 16,461,000 | $ 16,457,000 | |
China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. | Pending Litigation | |||
Loss Contingencies | |||
Derivative assets | 275 | ||
Damages sought | 228 | ||
Damages sought for obligation to pay | 12 | ||
China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. | Pending Litigation | Maximum | |||
Loss Contingencies | |||
Estimate of possible loss | 240 | ||
US Bank National Association, solely in its capacity as Trustee of the Morgan Stanley Mortgage Loan Trust 2007-2AX (MSM 2007-2AX) v. Morgan Stanley Mortgage Capital Holdings LLC, as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc. and GreenPoint Mortgage Funding, Inc. | Pending Litigation | |||
Loss Contingencies | |||
Face amount of debt instrument | 650 | ||
US Bank National Association, solely in its capacity as Trustee of the Morgan Stanley Mortgage Loan Trust 2007-2AX (MSM 2007-2AX) v. Morgan Stanley Mortgage Capital Holdings LLC, as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc. and GreenPoint Mortgage Funding, Inc. | Pending Litigation | Maximum | |||
Loss Contingencies | |||
Estimate of possible loss | 240 | ||
Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. (Trust 2007-NC4) | Pending Litigation | |||
Loss Contingencies | |||
Face amount of debt instrument | 876 | ||
Deutsche Bank National Trust Company solely in its capacity as Trustee of the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 v. Morgan Stanley Mortgage Capital Holdings LLC as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc., and Morgan Stanley ABS Capital I Inc. | Pending Litigation | |||
Loss Contingencies | |||
Face amount of debt instrument | 1,050 | ||
Deutsche Bank National Trust Company solely in its capacity as Trustee of the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 v. Morgan Stanley Mortgage Capital Holdings LLC as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc., and Morgan Stanley ABS Capital I Inc. | Pending Litigation | Maximum | |||
Loss Contingencies | |||
Estimate of possible loss | 277 | ||
Case Number 15/3637 and Case Number 15/4353 | Pending Litigation | Maximum | |||
Loss Contingencies | |||
Estimate of possible loss | $ 139 | € 124 |
Variable Interest Entities an_3
Variable Interest Entities and Securitization Activities - Assets and Liabilities by Type of Activity (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity | ||
VIE Assets | $ 1,948 | $ 1,135 |
VIE Liabilities | 461 | 86 |
OSF | ||
Variable Interest Entity | ||
VIE Assets | 696 | 267 |
VIE Liabilities | 391 | 0 |
MABS | ||
Variable Interest Entity | ||
VIE Assets | 265 | 59 |
VIE Liabilities | 4 | 38 |
Other | ||
Variable Interest Entity | ||
VIE Assets | 987 | 809 |
VIE Liabilities | $ 66 | $ 48 |
Variable Interest Entities an_4
Variable Interest Entities and Securitization Activities - Assets and Liabilities by Balance Sheet Caption (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | |||
Cash and due from banks | $ 4,293 | $ 30,541 | $ 24,816 |
Restricted cash | 32,512 | 35,356 | 34,231 |
Trading assets at fair value | 297,110 | 266,299 | |
Customer and other receivables | 55,646 | 53,298 | |
Goodwill | 7,143 | 6,688 | $ 6,597 |
Intangible assets | 2,107 | 2,163 | |
Other assets | 20,117 | 15,641 | |
Total assets | 895,429 | 853,531 | |
Liabilities | |||
Other secured financings | 7,809 | 5,245 | |
Other liabilities and accrued expenses | 21,155 | 17,204 | |
Total liabilities | 812,732 | 772,125 | |
Noncontrolling interests | 1,148 | 1,160 | |
Consolidated VIEs | |||
Assets | |||
Cash and due from banks | 315 | 77 | |
Restricted cash | 173 | 171 | |
Trading assets at fair value | 943 | 314 | |
Customer and other receivables | 18 | 25 | |
Goodwill | 0 | 18 | |
Intangible assets | 111 | 128 | |
Other assets | 388 | 402 | |
Total assets | 1,948 | 1,135 | |
Liabilities | |||
Other secured financings | 422 | 64 | |
Other liabilities and accrued expenses | 39 | 22 | |
Total liabilities | 461 | 86 | |
Noncontrolling interests | $ 192 | $ 106 |
Variable Interest Entities an_5
Variable Interest Entities and Securitization Activities - Non-Consolidated VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity | ||
Additional VIE assets owned | $ 11,453 | $ 12,059 |
Maximum exposure to loss previously excluded | 11,000 | |
Carrying value of variable interest previously excluded | 11,000 | |
Revision to VIE Asset (UPB), amount previously excluded | 54,000 | |
MABS | ||
Variable Interest Entity | ||
VIE assets (UPB) | 125,603 | 106,197 |
Maximum exposure to loss | 16,945 | 16,744 |
CDO | ||
Variable Interest Entity | ||
VIE assets (UPB) | 2,976 | 10,848 |
Maximum exposure to loss | 240 | 1,172 |
MTOB | ||
Variable Interest Entity | ||
VIE assets (UPB) | 6,965 | 7,014 |
Maximum exposure to loss | 4,599 | 4,449 |
OSF | ||
Variable Interest Entity | ||
VIE assets (UPB) | 2,288 | 3,314 |
Maximum exposure to loss | 1,009 | 1,857 |
Other | ||
Variable Interest Entity | ||
VIE assets (UPB) | 51,305 | 38,603 |
Maximum exposure to loss | 15,238 | 10,244 |
Assets | MABS | ||
Variable Interest Entity | ||
Carrying value of variable interests—Assets | 16,314 | 15,671 |
Assets | CDO | ||
Variable Interest Entity | ||
Carrying value of variable interests—Assets | 240 | 1,169 |
Assets | MTOB | ||
Variable Interest Entity | ||
Carrying value of variable interests—Assets | 6 | 6 |
Assets | OSF | ||
Variable Interest Entity | ||
Carrying value of variable interests—Assets | 1,008 | 1,205 |
Assets | Other | ||
Variable Interest Entity | ||
Carrying value of variable interests—Assets | 12,365 | 8,054 |
Debt and equity interests | MABS | ||
Variable Interest Entity | ||
Maximum exposure to loss | 16,314 | 15,671 |
Carrying value of variable interests—Assets | 16,314 | 15,671 |
Debt and equity interests | CDO | ||
Variable Interest Entity | ||
Maximum exposure to loss | 240 | 1,169 |
Carrying value of variable interests—Assets | 240 | 1,169 |
Debt and equity interests | MTOB | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of variable interests—Assets | 0 | 0 |
Debt and equity interests | OSF | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,009 | 1,622 |
Carrying value of variable interests—Assets | 1,008 | 1,205 |
Debt and equity interests | Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 11,977 | 7,967 |
Carrying value of variable interests—Assets | 11,977 | 7,967 |
Derivative and other contracts | MABS | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of variable interests—Assets | 0 | 0 |
Derivative and other contracts | CDO | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of variable interests—Assets | 0 | 0 |
Derivative and other contracts | MTOB | ||
Variable Interest Entity | ||
Maximum exposure to loss | 4,599 | 4,449 |
Carrying value of variable interests—Assets | 6 | 6 |
Derivative and other contracts | OSF | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of variable interests—Assets | 0 | 0 |
Derivative and other contracts | Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 2,995 | 1,768 |
Carrying value of variable interests—Assets | 388 | 87 |
Commitments, guarantees and other | MABS | ||
Variable Interest Entity | ||
Maximum exposure to loss | 631 | 1,073 |
Commitments, guarantees and other | CDO | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 3 |
Commitments, guarantees and other | MTOB | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Commitments, guarantees and other | OSF | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 235 |
Commitments, guarantees and other | Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 266 | 509 |
Derivative and other contracts | MABS | ||
Variable Interest Entity | ||
Carrying value of variable interests—Liabilities | 0 | 0 |
Derivative and other contracts | CDO | ||
Variable Interest Entity | ||
Carrying value of variable interests—Liabilities | 0 | 0 |
Derivative and other contracts | MTOB | ||
Variable Interest Entity | ||
Carrying value of variable interests—Liabilities | 0 | 0 |
Derivative and other contracts | OSF | ||
Variable Interest Entity | ||
Carrying value of variable interests—Liabilities | 0 | 0 |
Derivative and other contracts | Other | ||
Variable Interest Entity | ||
Carrying value of variable interests—Liabilities | $ 444 | $ 185 |
Variable Interest Entities an_6
Variable Interest Entities and Securitization Activities - Mortgage and Asset Backed Securitization Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Residential mortgages | ||
Variable Interest Entity | ||
UPB | $ 30,353 | $ 27,594 |
Commercial mortgages | ||
Variable Interest Entity | ||
UPB | 53,892 | 55,501 |
U.S. agency collateralized mortgage obligations | ||
Variable Interest Entity | ||
UPB | 36,366 | 14,969 |
Other consumer or commercial loans | ||
Variable Interest Entity | ||
UPB | 4,992 | 8,133 |
MABS | ||
Variable Interest Entity | ||
UPB | 125,603 | 106,197 |
Debt and Equity Interests | ||
Variable Interest Entity | ||
Debt and Equity Interests | 16,314 | 15,671 |
Debt and Equity Interests | Residential mortgages | ||
Variable Interest Entity | ||
Debt and Equity Interests | 3,993 | 4,581 |
Debt and Equity Interests | Commercial mortgages | ||
Variable Interest Entity | ||
Debt and Equity Interests | 3,881 | 4,327 |
Debt and Equity Interests | U.S. agency collateralized mortgage obligations | ||
Variable Interest Entity | ||
Debt and Equity Interests | 6,365 | 3,443 |
Debt and Equity Interests | Other consumer or commercial loans | ||
Variable Interest Entity | ||
Debt and Equity Interests | $ 2,075 | $ 3,320 |
Variable Interest Entities an_7
Variable Interest Entities and Securitization Activities - Transfers of Assets with Continuing Involvement (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity | ||
Derivative assets | $ 32,001 | $ 29,173 |
Derivative liabilities | 28,434 | 27,258 |
SPE | ||
Variable Interest Entity | ||
Interests purchased in the secondary market | 406 | 299 |
Derivative assets | 339 | 216 |
Derivative liabilities | 145 | 178 |
SPE | Investment grade | ||
Variable Interest Entity | ||
Interests purchased in the secondary market | 280 | 200 |
SPE | Non-investment grade | ||
Variable Interest Entity | ||
Interests purchased in the secondary market | 126 | 99 |
SPE | RML | ||
Variable Interest Entity | ||
SPE assets (UPB) | 9,850 | 14,376 |
Retained interests | 46 | 21 |
Interests purchased in the secondary market | 81 | 35 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
SPE | RML | Investment grade | ||
Variable Interest Entity | ||
Retained interests | 29 | 17 |
Interests purchased in the secondary market | 6 | 7 |
SPE | RML | Non-investment grade | ||
Variable Interest Entity | ||
Retained interests | 17 | 4 |
Interests purchased in the secondary market | 75 | 28 |
SPE | CML | ||
Variable Interest Entity | ||
SPE assets (UPB) | 86,203 | 68,593 |
Retained interests | 974 | 695 |
Interests purchased in the secondary market | 248 | 162 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
SPE | CML | Investment grade | ||
Variable Interest Entity | ||
Retained interests | 720 | 483 |
Interests purchased in the secondary market | 197 | 91 |
SPE | CML | Non-investment grade | ||
Variable Interest Entity | ||
Retained interests | 254 | 212 |
Interests purchased in the secondary market | 51 | 71 |
SPE | Agency CMBS | ||
Variable Interest Entity | ||
SPE assets (UPB) | 19,132 | 16,594 |
Retained interests | 2,376 | 1,573 |
Interests purchased in the secondary market | 77 | 102 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
SPE | Agency CMBS | Investment grade | ||
Variable Interest Entity | ||
Retained interests | 2,376 | 1,573 |
Interests purchased in the secondary market | 77 | 102 |
SPE | Agency CMBS | Non-investment grade | ||
Variable Interest Entity | ||
Retained interests | 0 | 0 |
Interests purchased in the secondary market | 0 | 0 |
SPE | CLN and Other | ||
Variable Interest Entity | ||
SPE assets (UPB) | 8,410 | 14,608 |
Retained interests | 93 | 213 |
Interests purchased in the secondary market | 0 | 0 |
Derivative assets | 339 | 216 |
Derivative liabilities | 145 | 178 |
SPE | CLN and Other | Investment grade | ||
Variable Interest Entity | ||
Retained interests | 1 | 3 |
Interests purchased in the secondary market | 0 | 0 |
SPE | CLN and Other | Non-investment grade | ||
Variable Interest Entity | ||
Retained interests | 92 | 210 |
Interests purchased in the secondary market | $ 0 | $ 0 |
Variable Interest Entities an_8
Variable Interest Entities and Securitization Activities - Fair Value of Transfers of Assets with Continuing Involvement (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity | ||
Derivative assets | $ 32,001 | $ 29,173 |
Derivative liabilities | 28,434 | 27,258 |
Derivative Liabilities | ||
Variable Interest Entity | ||
Derivative liability, balance only reported in assets sold with retained exposure table | 119 | |
UPB | ||
Variable Interest Entity | ||
Continuing involvement with transferred financial assets, principal amount outstanding, balance only reported in assets sold with retained exposure table | 8,000 | |
Derivative Assets | ||
Variable Interest Entity | ||
Derivative asset, balance only reported in assets sold with retained exposure table | 20 | |
SPE | ||
Variable Interest Entity | ||
Retained interests | 2,508 | 2,019 |
Interests purchased in the secondary market | 406 | 299 |
Derivative assets | 339 | 216 |
Derivative liabilities | 145 | 178 |
SPE | Investment grade | ||
Variable Interest Entity | ||
Retained interests | 2,405 | 1,593 |
Interests purchased in the secondary market | 280 | 200 |
SPE | Non-investment grade | ||
Variable Interest Entity | ||
Retained interests | 103 | 426 |
Interests purchased in the secondary market | 126 | 99 |
SPE | Level 2 | ||
Variable Interest Entity | ||
Retained interests | 2,407 | 1,754 |
Interests purchased in the secondary market | 346 | 276 |
Derivative assets | 337 | 121 |
Derivative liabilities | 144 | 175 |
SPE | Level 2 | Investment grade | ||
Variable Interest Entity | ||
Retained interests | 2,401 | 1,580 |
Interests purchased in the secondary market | 278 | 193 |
SPE | Level 2 | Non-investment grade | ||
Variable Interest Entity | ||
Retained interests | 6 | 174 |
Interests purchased in the secondary market | 68 | 83 |
SPE | Level 3 | ||
Variable Interest Entity | ||
Retained interests | 101 | 265 |
Interests purchased in the secondary market | 60 | 23 |
Derivative assets | 2 | 95 |
Derivative liabilities | 1 | 3 |
SPE | Level 3 | Investment grade | ||
Variable Interest Entity | ||
Retained interests | 4 | 13 |
Interests purchased in the secondary market | 2 | 7 |
SPE | Level 3 | Non-investment grade | ||
Variable Interest Entity | ||
Retained interests | 97 | 252 |
Interests purchased in the secondary market | $ 58 | $ 16 |
Variable Interest Entities an_9
Variable Interest Entities and Securitization Activities - Proceeds from New Securitization Transactions and Sales of Loans (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Transfer of Financial Assets Accounted for as Sales | |||
New transactions | $ 34,464 | $ 23,821 | $ 23,939 |
Retained interests | 7,403 | 2,904 | 2,337 |
CLO SPEs | Corporate Loans | |||
Transfer of Financial Assets Accounted for as Sales | |||
Sales of corporate loans to CLO SPEs | $ 2 | $ 317 | $ 191 |
Variable Interest Entities a_10
Variable Interest Entities and Securitization Activities - Assets Sold with Retained Exposure (Details) - Bilateral OTC - Equity Derivatives - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Transfer of Financial Assets Accounted for as Sales | ||
Gross cash proceeds from sale of assets | $ 38,661 | $ 27,121 |
Fair value | ||
Assets sold | 39,137 | 26,524 |
Derivative assets recognized in the balance sheets | 647 | 164 |
Derivative liabilities recognized in the balance sheets | $ 152 | $ 763 |
Regulatory Requirements - Narra
Regulatory Requirements - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Brokers and Dealers [Abstract] | |
Common Equity Tier 1 capital conservation buffer requirement (as a percent) | 2.50% |
Common Equity Tier 1 G-SIB capital surcharge requirement (as a percent) | 3.00% |
Common Equity Tier 1 CCyB requirement (as a percent) | 2.50% |
Proportion of phased-in Common Equity Tier 1 capital requirements (as a percent) | 75.00% |
Minimum Tier 1 SLR requirement (as a percent) | 5.00% |
Minimum enhanced SLR capital buffer (as a percent) | 2.00% |
Regulatory Requirements - The F
Regulatory Requirements - The Firm's Regulatory Capital and Capital Ratios (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Required Ratio | ||
Common Equity Tier 1 capital (as a percent) | 10.00% | 8.60% |
Tier 1 capital (as a percent) | 11.50% | 10.10% |
Total capital (as a percent) | 13.50% | 12.10% |
Tier 1 leverage (as a percent) | 4.00% | 4.00% |
SLR (as a percent) | 5.00% | 5.00% |
Amount | ||
Common Equity Tier 1 capital | $ 64,751 | $ 62,086 |
Tier 1 capital | 73,443 | 70,619 |
Total capital | 82,708 | 80,052 |
Total RWA | 394,177 | 367,309 |
Tier 1 leverage | 73,443 | 70,619 |
Adjusted average assets | 889,195 | 843,074 |
SLR | 73,443 | 70,619 |
Supplementary leverage exposure | $ 1,155,177 | $ 1,092,672 |
Ratio | ||
Common Equity Tier 1 capital (as a percent) | 16.40% | 16.90% |
Tier 1 capital (as a percent) | 18.60% | 19.20% |
Total capital (as a percent) | 21.00% | 21.80% |
Tier 1 leverage (as a percent) | 8.30% | 8.40% |
SLR (as a percent) | 6.40% | 6.50% |
Regulatory Requirements - U.S.
Regulatory Requirements - U.S. Bank Subsidiaries' Regulatory Capital and Capital Ratios (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Required Ratio | ||
Common Equity Tier 1 capital (as a percent) | 10.00% | 8.60% |
Tier 1 capital (as a percent) | 11.50% | 10.10% |
Total capital (as a percent) | 13.50% | 12.10% |
Tier 1 leverage (as a percent) | 4.00% | 4.00% |
SLR (as a percent) | 5.00% | 5.00% |
Amount | ||
Common Equity Tier 1 capital | $ 64,751 | $ 62,086 |
Tier 1 capital | 73,443 | 70,619 |
Total capital | 82,708 | 80,052 |
Tier 1 leverage | 73,443 | 70,619 |
SLR | $ 73,443 | $ 70,619 |
Ratio | ||
Common Equity Tier 1 capital (as a percent) | 16.40% | 16.90% |
Tier 1 capital (as a percent) | 18.60% | 19.20% |
Total capital (as a percent) | 21.00% | 21.80% |
Tier 1 leverage (as a percent) | 8.30% | 8.40% |
SLR (as a percent) | 6.40% | 6.50% |
MSBNA | ||
Required Ratio | ||
Common Equity Tier 1 capital (as a percent) | 6.50% | 6.50% |
Tier 1 capital (as a percent) | 8.00% | 8.00% |
Total capital (as a percent) | 10.00% | 10.00% |
Tier 1 leverage (as a percent) | 5.00% | 5.00% |
SLR (as a percent) | 6.00% | 6.00% |
Amount | ||
Common Equity Tier 1 capital | $ 15,919 | $ 15,221 |
Tier 1 capital | 15,919 | 15,221 |
Total capital | 16,282 | 15,484 |
Tier 1 leverage | 15,919 | 15,221 |
SLR | $ 15,919 | $ 15,221 |
Ratio | ||
Common Equity Tier 1 capital (as a percent) | 18.50% | 19.50% |
Tier 1 capital (as a percent) | 18.50% | 19.50% |
Total capital (as a percent) | 18.90% | 19.80% |
Tier 1 leverage (as a percent) | 11.30% | 10.50% |
SLR (as a percent) | 8.70% | 8.20% |
MSPBNA | ||
Required Ratio | ||
Common Equity Tier 1 capital (as a percent) | 6.50% | 6.50% |
Tier 1 capital (as a percent) | 8.00% | 8.00% |
Total capital (as a percent) | 10.00% | 10.00% |
Tier 1 leverage (as a percent) | 5.00% | 5.00% |
SLR (as a percent) | 6.00% | 6.00% |
Amount | ||
Common Equity Tier 1 capital | $ 7,962 | $ 7,183 |
Tier 1 capital | 7,962 | 7,183 |
Total capital | 8,016 | 7,229 |
Tier 1 leverage | 7,962 | 7,183 |
SLR | $ 7,962 | $ 7,183 |
Ratio | ||
Common Equity Tier 1 capital (as a percent) | 24.80% | 25.20% |
Tier 1 capital (as a percent) | 24.80% | 25.20% |
Total capital (as a percent) | 25.00% | 25.40% |
Tier 1 leverage (as a percent) | 9.90% | 10.00% |
SLR (as a percent) | 9.40% | 9.60% |
Regulatory Requirements - U.S_2
Regulatory Requirements - U.S. Broker-Dealer Regulatory Capital Requirements (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
MS&Co. | ||
Regulatory Requirements | ||
Net capital | $ 13,708 | $ 13,797 |
Excess net capital | 10,686 | 11,333 |
MSSB LLC | ||
Regulatory Requirements | ||
Net capital | 3,387 | 3,455 |
Excess net capital | $ 3,238 | $ 3,313 |
Regulatory Requirements - Restr
Regulatory Requirements - Restrictions on Payments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Brokers and Dealers [Abstract] | ||
Restricted net assets | $ 33,213 | $ 29,222 |
Total Equity - Rollforward of C
Total Equity - Rollforward of Common Stock Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Common Stock Outstanding [Roll Forward] | ||
Balance at beginning of period (shares) | 1,699,828,943 | 1,788,000,000 |
Treasury stock purchases (shares) | (135,000,000) | (110,000,000) |
Other (shares) | 29,000,000 | 22,000,000 |
Balance at end of period (shares) | 1,593,973,680 | 1,699,828,943 |
Total Equity - Share Repurchase
Total Equity - Share Repurchases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Repurchases of common stock under the Firm’s Share Repurchase Program | $ 5,360 | $ 4,860 |
Total Equity - Narrative (Detai
Total Equity - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Nov. 25, 2019 | |
Capital Plans | ||
Preferred stock authorized (shares) | 30,000,000 | |
Series G | ||
Capital Plans | ||
Preferred stock redemption amount | $ 500,000,000 | |
MUFG | ||
Capital Plans | ||
Ownership proportion maximum (as a percent) | 24.90% | |
2019 Capital Plan | ||
Capital Plans | ||
Authorized repurchase amount of outstanding common stock | $ 6,000,000,000 | |
Maximum quarterly common stock dividends per share (USD per share) | $ 0.35 |
Total Equity - Common Stock Div
Total Equity - Common Stock Dividends Per Share (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||||||||||
Dividends declared per common share (USD per share) | $ 0.35 | $ 0.35 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.25 | $ 0.25 | $ 1.30 | $ 1.10 | $ 0.90 |
Total Equity - Reconciliation o
Total Equity - Reconciliation of Common Shares Outstanding for Diluted EPS (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Weighted average common shares outstanding (shares) | 1,617 | 1,708 | 1,780 |
Effect of dilutive Stock options, RSUs and PSUs (shares) | 23 | 30 | 41 |
Weighted average common shares outstanding and common stock equivalents (shares) | 1,640 | 1,738 | 1,821 |
Weighted average antidilutive RSUs and stock options (excluded from the computation of diluted EPS) (shares) | 2 | 1 | 0 |
Total Equity - Preferred Stock
Total Equity - Preferred Stock Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2019 | Nov. 25, 2019 | Nov. 18, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Class of Stock | |||||
Preferred stock | $ 8,520 | $ 8,520 | |||
Series A | |||||
Class of Stock | |||||
Preferred stock shares outstanding (shares) | 44,000 | ||||
Liquidation preference per share (USD per share) | $ 25,000 | ||||
Preferred stock | $ 1,100 | 1,100 | |||
Preferred stock shares issued (shares) | 44,000 | ||||
Series C | |||||
Class of Stock | |||||
Preferred stock shares outstanding (shares) | 519,882 | ||||
Liquidation preference per share (USD per share) | $ 1,000 | ||||
Preferred stock | $ 408 | 408 | |||
Preferred stock shares issued (shares) | 1,160,791 | ||||
Series C | MUFG | |||||
Class of Stock | |||||
Preferred stock shares issued (shares) | 1,160,791 | ||||
Preferred stock aggregate purchase price | $ 911 | ||||
Preferred stock redemption (shares) | 640,909 | ||||
Preferred stock redemption amount | $ 503 | ||||
Preferred stock converted to common shares | $ 705 | ||||
Series E | |||||
Class of Stock | |||||
Preferred stock shares outstanding (shares) | 34,500 | ||||
Liquidation preference per share (USD per share) | $ 25,000 | ||||
Preferred stock | $ 862 | 862 | |||
Preferred stock shares issued (shares) | 34,500 | ||||
Series F | |||||
Class of Stock | |||||
Preferred stock shares outstanding (shares) | 34,000 | ||||
Liquidation preference per share (USD per share) | $ 25,000 | ||||
Preferred stock | $ 850 | 850 | |||
Preferred stock shares issued (shares) | 34,000 | ||||
Series G | |||||
Class of Stock | |||||
Preferred stock shares outstanding (shares) | 0 | ||||
Liquidation preference per share (USD per share) | $ 0 | ||||
Preferred stock | $ 0 | 500 | |||
Preferred stock redemption amount | $ 500 | ||||
Series H | |||||
Class of Stock | |||||
Preferred stock shares outstanding (shares) | 52,000 | ||||
Liquidation preference per share (USD per share) | $ 25,000 | ||||
Preferred stock | $ 1,300 | 1,300 | |||
Preferred stock shares issued (shares) | 52,000 | ||||
Series I | |||||
Class of Stock | |||||
Preferred stock shares outstanding (shares) | 40,000 | ||||
Liquidation preference per share (USD per share) | $ 25,000 | ||||
Preferred stock | $ 1,000 | 1,000 | |||
Preferred stock shares issued (shares) | 40,000 | ||||
Series J | |||||
Class of Stock | |||||
Preferred stock shares outstanding (shares) | 60,000 | ||||
Liquidation preference per share (USD per share) | $ 25,000 | ||||
Preferred stock | $ 1,500 | 1,500 | |||
Preferred stock shares issued (shares) | 60,000 | ||||
Series K | |||||
Class of Stock | |||||
Preferred stock shares outstanding (shares) | 40,000 | ||||
Liquidation preference per share (USD per share) | $ 25,000 | ||||
Preferred stock | $ 1,000 | 1,000 | |||
Preferred stock shares issued (shares) | 40,000 | ||||
Series L | |||||
Class of Stock | |||||
Preferred stock shares outstanding (shares) | 20,000 | ||||
Liquidation preference per share (USD per share) | $ 25,000 | ||||
Preferred stock | $ 500 | $ 0 | |||
Preferred stock shares issued (shares) | 20,000 | ||||
Preferred stock aggregate purchase price | $ 500 |
Total Equity - Preferred Stoc_2
Total Equity - Preferred Stock Issuance Description (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Class of Stock | |
Preferred stock, par value (USD per share) | $ / shares | $ 0.01 |
Redemption period following regulatory capital treatment event | 90 days |
Dividend rate of preferred stock per annum (as a percent) | 10.00% |
Series A | |
Class of Stock | |
Shares issued (shares) | 44,000 |
Depositary shares per share (shares) | 1,000 |
Price per share (USD per share) | $ / shares | $ 25,000 |
Series C | |
Class of Stock | |
Shares issued (shares) | 1,160,791 |
Price per share (USD per share) | $ / shares | $ 1,100 |
Series E | |
Class of Stock | |
Shares issued (shares) | 34,500 |
Depositary shares per share (shares) | 1,000 |
Price per share (USD per share) | $ / shares | $ 25,000 |
Series F | |
Class of Stock | |
Shares issued (shares) | 34,000 |
Depositary shares per share (shares) | 1,000 |
Price per share (USD per share) | $ / shares | $ 25,000 |
Series H | |
Class of Stock | |
Shares issued (shares) | 52,000 |
Depositary shares per share (shares) | 25 |
Price per share (USD per share) | $ / shares | $ 25,000 |
Series I | |
Class of Stock | |
Shares issued (shares) | 40,000 |
Depositary shares per share (shares) | 1,000 |
Price per share (USD per share) | $ / shares | $ 25,000 |
Series J | |
Class of Stock | |
Shares issued (shares) | 60,000 |
Depositary shares per share (shares) | 25 |
Price per share (USD per share) | $ / shares | $ 25,000 |
Series K | |
Class of Stock | |
Shares issued (shares) | 40,000 |
Depositary shares per share (shares) | 1,000 |
Price per share (USD per share) | $ / shares | $ 25,000 |
Series L | |
Class of Stock | |
Shares issued (shares) | 20,000 |
Depositary shares per share (shares) | 1,000 |
Price per share (USD per share) | $ / shares | $ 25,000 |
Total Equity - Preferred Stoc_3
Total Equity - Preferred Stock Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Preferred Stock Dividends | |||
Preferred stock dividends declared | $ 524 | $ 526 | $ 523 |
Series A | |||
Preferred Stock Dividends | |||
Preferred stock dividend declared (USD per share) | $ 1,014 | $ 1,011 | $ 1,014 |
Preferred stock dividends declared | $ 44 | $ 45 | $ 45 |
Series C | |||
Preferred Stock Dividends | |||
Preferred stock dividend declared (USD per share) | $ 100 | $ 100 | $ 100 |
Preferred stock dividends declared | $ 52 | $ 52 | $ 52 |
Series E | |||
Preferred Stock Dividends | |||
Preferred stock dividend declared (USD per share) | $ 1,781 | $ 1,781 | $ 1,781 |
Preferred stock dividends declared | $ 60 | $ 61 | $ 61 |
Series F | |||
Preferred Stock Dividends | |||
Preferred stock dividend declared (USD per share) | $ 1,719 | $ 1,719 | $ 1,719 |
Preferred stock dividends declared | $ 60 | $ 58 | $ 58 |
Series G | |||
Preferred Stock Dividends | |||
Preferred stock dividend declared (USD per share) | $ 1,242 | $ 1,656 | $ 1,656 |
Preferred stock dividends declared | $ 24 | $ 33 | $ 33 |
Series H | |||
Preferred Stock Dividends | |||
Preferred stock dividend declared (USD per share) | $ 1,418 | $ 1,363 | $ 1,363 |
Preferred stock dividends declared | $ 74 | $ 71 | $ 71 |
Series I | |||
Preferred Stock Dividends | |||
Preferred stock dividend declared (USD per share) | $ 1,594 | $ 1,594 | $ 1,594 |
Preferred stock dividends declared | $ 64 | $ 64 | $ 64 |
Series J | |||
Preferred Stock Dividends | |||
Preferred stock dividend declared (USD per share) | $ 1,388 | $ 1,388 | $ 1,388 |
Preferred stock dividends declared | $ 84 | $ 83 | $ 83 |
Series K | |||
Preferred Stock Dividends | |||
Preferred stock dividend declared (USD per share) | $ 1,463 | $ 1,463 | $ 1,402 |
Preferred stock dividends declared | $ 59 | $ 59 | $ 56 |
Series L | |||
Preferred Stock Dividends | |||
Preferred stock dividend declared (USD per share) | $ 169 | $ 0 | $ 0 |
Preferred stock dividends declared | $ 3 | $ 0 | $ 0 |
Total Equity - Accumulated Othe
Total Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 01, 2017 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | $ 81,406 | $ 78,466 | |||||
Ending balance | 82,697 | 81,406 | $ 78,466 | ||||
Foreign Currency Translation Adjustments | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (889) | (767) | (986) | ||||
Cumulative adjustments for accounting changes | $ (8) | ||||||
OCI during the period | (8) | (114) | 219 | ||||
Ending balance | (897) | (889) | (767) | ||||
AFS Securities | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (930) | (547) | (588) | ||||
Cumulative adjustments for accounting changes | (111) | ||||||
OCI during the period | 1,137 | (272) | 41 | ||||
Ending balance | 207 | (930) | (547) | ||||
Pensions, Postretirement and Other | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (578) | (591) | (474) | ||||
Cumulative adjustments for accounting changes | (124) | ||||||
OCI during the period | (66) | 137 | (117) | ||||
Ending balance | (644) | (578) | (591) | ||||
DVA | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | 105 | (1,155) | (595) | ||||
Cumulative adjustments for accounting changes | (194) | ||||||
OCI during the period | (1,559) | 1,454 | (560) | ||||
Ending balance | (1,454) | 105 | (1,155) | ||||
Total | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (2,292) | (3,060) | (2,643) | ||||
Cumulative adjustments for accounting changes | [1] | $ 0 | $ (437) | $ 0 | |||
OCI during the period | (496) | 1,205 | (417) | ||||
Ending balance | $ (2,788) | $ (2,292) | $ (3,060) | ||||
[1] | See Notes 2 and 16 for further information regarding cumulative adjustments for accounting changes. |
Total Equity - Components of Pe
Total Equity - Components of Period Changes in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
After-tax Gain (Loss) | |||
Net OCI | $ (565) | $ 1,292 | $ (413) |
Foreign Currency Translation Adjustment Including Noncontrolling Interest | |||
Pre-tax Gain (Loss) | |||
OCI activity | 6 | (11) | 64 |
Reclassified to earnings | 0 | 0 | 0 |
Net OCI | 6 | (11) | 64 |
Income Tax Benefit (Provision) | |||
OCI activity | (3) | (79) | (187) |
Reclassified to earnings | 0 | 0 | 0 |
Net OCI | (3) | (79) | 187 |
After-tax Gain (Loss) | |||
OCI activity | 3 | (90) | 251 |
Reclassified to earnings | 0 | 0 | 0 |
Net OCI | 3 | (90) | 251 |
Foreign Currency Translation Adjustment Attributable to Noncontrolling Interest | |||
After-tax Gain (Loss) | |||
OCI activity | 11 | 24 | 32 |
Reclassified to earnings | 0 | 0 | 0 |
Net OCI | 11 | 24 | 32 |
Foreign Currency Translation Adjustment Attributable to Parent | |||
After-tax Gain (Loss) | |||
OCI activity | (8) | (114) | 219 |
Reclassified to earnings | 0 | 0 | 0 |
Net OCI | (8) | (114) | 219 |
Change in Net Unrealized Gains (Losses) on AFS Securities Including Noncontrolling Interest | |||
Pre-tax Gain (Loss) | |||
OCI activity | 1,588 | (346) | 100 |
Reclassified to earnings | (103) | (8) | 35 |
Net OCI | 1,485 | (354) | 65 |
Income Tax Benefit (Provision) | |||
OCI activity | (373) | 80 | 36 |
Reclassified to earnings | 25 | 2 | 12 |
Net OCI | (348) | 82 | (24) |
After-tax Gain (Loss) | |||
OCI activity | 1,215 | (266) | 64 |
Reclassified to earnings | 78 | 6 | 23 |
Net OCI | 1,137 | (272) | 41 |
Change in Net Unrealized Gains (Losses) on AFS Securities Attributable to Noncontrolling Interest | |||
After-tax Gain (Loss) | |||
OCI activity | 0 | 0 | 0 |
Reclassified to earnings | 0 | 0 | 0 |
Net OCI | 0 | 0 | 0 |
Change in Net Unrealized Gains (Losses) on AFS Securities Attributable to Parent | |||
After-tax Gain (Loss) | |||
OCI activity | 1,215 | (266) | 64 |
Reclassified to earnings | 78 | 6 | 23 |
Net OCI | 1,137 | (272) | 41 |
Pension, Postretirement and Other Including Noncontrolling Interest | |||
Pre-tax Gain (Loss) | |||
OCI activity | (98) | 156 | (193) |
Reclassified to earnings | 12 | 26 | (2) |
Net OCI | (86) | 182 | (191) |
Income Tax Benefit (Provision) | |||
OCI activity | 25 | (37) | (75) |
Reclassified to earnings | (5) | (8) | (1) |
Net OCI | 20 | (45) | 74 |
After-tax Gain (Loss) | |||
OCI activity | (73) | 119 | (118) |
Reclassified to earnings | (7) | (18) | (1) |
Net OCI | (66) | 137 | (117) |
Pension, Postretirement and Other Attributable to Noncontrolling Interest | |||
After-tax Gain (Loss) | |||
OCI activity | 0 | 0 | 0 |
Reclassified to earnings | 0 | 0 | 0 |
Net OCI | 0 | 0 | 0 |
Pension, Postretirement and Other Attributable to Parent | |||
After-tax Gain (Loss) | |||
OCI activity | (73) | 119 | (118) |
Reclassified to earnings | (7) | (18) | (1) |
Net OCI | (66) | 137 | (117) |
Change in Net DVA Including Noncontrolling Interest | |||
Pre-tax Gain (Loss) | |||
OCI activity | (2,181) | 1,947 | (922) |
Reclassified to earnings | 11 | 56 | (12) |
Net OCI | (2,170) | 2,003 | (910) |
Income Tax Benefit (Provision) | |||
OCI activity | 533 | (472) | (325) |
Reclassified to earnings | (2) | (14) | (3) |
Net OCI | 531 | (486) | 322 |
After-tax Gain (Loss) | |||
OCI activity | (1,648) | 1,475 | (597) |
Reclassified to earnings | (9) | (42) | (9) |
Net OCI | (1,639) | 1,517 | (588) |
Change in Net DVA Attributable to Noncontrolling Interest | |||
After-tax Gain (Loss) | |||
OCI activity | (80) | 63 | (28) |
Reclassified to earnings | 0 | 0 | 0 |
Net OCI | (80) | 63 | (28) |
Change in Net DVA Attributable to Parent | |||
After-tax Gain (Loss) | |||
OCI activity | (1,568) | 1,412 | (569) |
Reclassified to earnings | (9) | (42) | (9) |
Net OCI | $ (1,559) | $ 1,454 | $ (560) |
Total Equity - Cumulative Adjus
Total Equity - Cumulative Adjustments to Retained Earnings Related to the Adoption of Accounting Updates (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 01, 2017 | |
Retained Earnings | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative adjustments for accounting changes | [1] | $ 63 | $ 306 | $ (35) |
Retained Earnings | Leases | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative adjustments for accounting changes | 63 | |||
Retained Earnings | Revenues from contracts with customers | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative adjustments for accounting changes | (32) | |||
Retained Earnings | Derivatives and hedging—targeted improvements to accounting for hedging activities | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative adjustments for accounting changes | (99) | |||
Retained Earnings | Reclassification of certain tax effects from AOCI | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative adjustments for accounting changes | 443 | |||
Retained Earnings | Other | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative adjustments for accounting changes | (6) | |||
Retained Earnings | Improvements to employee share-based payment accounting2 | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative adjustments for accounting changes | (30) | |||
Retained Earnings | Intra-entity transfers of assets other than inventory | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative adjustments for accounting changes | (5) | |||
Additional Paid-in Capital | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative adjustments for accounting changes | [1] | $ 0 | $ 0 | 45 |
Additional Paid-in Capital | Improvements to employee share-based payment accounting2 | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative adjustments for accounting changes | $ 45 | |||
[1] | See Notes 2 and 16 for further information regarding cumulative adjustments for accounting changes. |
Total Equity - Cumulative Forei
Total Equity - Cumulative Foreign Currency Translation Adjustments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Associated with net investments in subsidiaries with a non-U.S. dollar functional currency | $ (1,874) | $ (1,851) |
Hedges, net of tax | 977 | 962 |
Total | (897) | (889) |
Carrying value of net investments in non-U.S. dollar functional currency subsidiaries subject to hedges | $ 13,440 | $ 11,608 |
Interest Income and Interest _3
Interest Income and Interest Expense - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income | |||||||||||
Investment securities | $ 2,175 | $ 1,744 | $ 1,334 | ||||||||
Loans | 4,783 | 4,249 | 3,298 | ||||||||
Securities purchased under agreements to resell and securities borrowed | 3,485 | 1,976 | 169 | ||||||||
Trading assets, net of Trading liabilities | 2,899 | 2,392 | 2,029 | ||||||||
Customer receivables and Other | 3,756 | 3,531 | 2,167 | ||||||||
Total interest income | 17,098 | 13,892 | 8,997 | ||||||||
Interest expense | |||||||||||
Deposits | 1,885 | 1,255 | 187 | ||||||||
Borrowings | 5,052 | 5,031 | 4,285 | ||||||||
Securities sold under agreements to repurchase and securities loaned | 2,609 | 1,898 | 1,237 | ||||||||
Customer payables and Other | 2,858 | 1,902 | (12) | ||||||||
Total interest expense | 12,404 | 10,086 | 5,697 | ||||||||
Net interest | $ 1,433 | $ 1,218 | $ 1,029 | $ 1,014 | $ 989 | $ 936 | $ 906 | $ 975 | $ 4,694 | $ 3,806 | $ 3,300 |
Deferred Compensation Plans a_3
Deferred Compensation Plans and Carried Interest Compensation - Stock-based Compensation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Awards | |||
Stock-based compensation expense | $ 1,153 | $ 920 | $ 1,026 |
Retirement eligible awards | 111 | 110 | 85 |
RSUs | |||
Share-based Payment Awards | |||
Stock-based compensation expense | 1,064 | 892 | 951 |
PSUs | |||
Share-based Payment Awards | |||
Stock-based compensation expense | $ 89 | $ 28 | $ 75 |
Deferred Compensation Plans a_4
Deferred Compensation Plans and Carried Interest Compensation - Tax Benefit Related to Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation Related Costs [Abstract] | |||
Tax benefit | $ 243 | $ 193 | $ 225 |
Deferred Compensation Plans a_5
Deferred Compensation Plans and Carried Interest Compensation - Unrecognized Compensation Cost Related to Stock-Based Awards Granted (Details) $ in Millions | Dec. 31, 2019USD ($) |
To be recognized in: | |
2020 | $ 394 |
2021 | 168 |
Thereafter | 30 |
Total | $ 592 |
Deferred Compensation Plans a_6
Deferred Compensation Plans and Carried Interest Compensation - Common Shares Available for Future Awards under Stock-Based Compensation Plans (Details) shares in Millions | Dec. 31, 2019shares |
Compensation Related Costs [Abstract] | |
Common shares available for future awards (shares) | 123 |
Deferred Compensation Plans a_7
Deferred Compensation Plans and Carried Interest Compensation - Vested and Unvested RSU Activity (Details) - RSUs - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
RSUs at beginning of period (shares) | 74 | ||
Awarded (shares) | 27 | ||
Conversions to common stock (shares) | (35) | ||
Forfeited (shares) | (1) | ||
RSUs at end of period (shares) | 65 | 74 | |
Aggregate intrinsic value of RSUs | $ 3,294 | ||
Weighted Average Award Date Fair Value | |||
RSUs at beginning of period (USD per share) | $ 37.59 | ||
Awarded (USD per share) | 43.05 | $ 55.40 | $ 42.98 |
Conversions to common stock (USD per share) | 28.95 | ||
Forfeited (USD per share) | 43.66 | ||
RSUs at end of period (USD per share) | $ 44.38 | $ 37.59 | |
Weighted average remaining term | 1 year 2 months 12 days | ||
Minimum | |||
Share-based Payment Awards | |||
Award vesting period | 1 year | ||
Maximum | |||
Share-based Payment Awards | |||
Award vesting period | 7 years |
Deferred Compensation Plans a_8
Deferred Compensation Plans and Carried Interest Compensation - Unvested RSU Activity (Details) - RSUs - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
Unvested RSUs at beginning of period (shares) | 41 | ||
Awarded (shares) | 27 | ||
Vested (shares) | (30) | ||
Forfeited (shares) | (1) | ||
Unvested RSUs at end of period (shares) | 37 | 41 | |
Weighted Average Award Date Fair Value | |||
Unvested RSUs at beginning of period (USD per share) | $ 40.65 | ||
Awarded (USD per share) | 43.05 | $ 55.40 | $ 42.98 |
Vested (USD per share) | 37.80 | ||
Forfeited (USD per share) | 43.66 | ||
Unvested RSUs at end of period (USD per share) | $ 44.58 | $ 40.65 |
Deferred Compensation Plans a_9
Deferred Compensation Plans and Carried Interest Compensation - Fair Value of RSU Activity (Details) - RSUs - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Awards | |||
Fair value of RSUs converted to common stock | $ 1,497 | $ 1,790 | $ 1,333 |
Fair value of RSUs vested | $ 1,292 | $ 1,504 | $ 1,470 |
Deferred Compensation Plans _10
Deferred Compensation Plans and Carried Interest Compensation - Narrative (Details) - PSUs shares in Millions | 12 Months Ended |
Dec. 31, 2019shares | |
Share-based Payment Awards | |
PSUs outstanding (shares) | 3 |
Minimum | |
Share-based Payment Awards | |
Proportion of PSUs that will vest (as a percent) | 0.00% |
Maximum | |
Share-based Payment Awards | |
Proportion of PSUs that will vest (as a percent) | 150.00% |
Deferred Compensation Plans _11
Deferred Compensation Plans and Carried Interest Compensation - PSU Fair Value on Award Date (Details) - PSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
MS Adjusted ROE | |||
Share-based Payment Awards | |||
Fair value per PSU on award date (USD per share) | $ 43.29 | $ 56.84 | $ 42.64 |
Relative MS TSR | |||
Share-based Payment Awards | |||
Fair value per PSU on award date (USD per share) | $ 48.28 | $ 65.81 | $ 48.02 |
Deferred Compensation Plans _12
Deferred Compensation Plans and Carried Interest Compensation - Monte Carlo Simulation Assumptions (Details) | 12 Months Ended |
Dec. 31, 2019 | |
2019 | |
Deferred Compensation Awards | |
Risk-free interest rate (as a percent) | 2.60% |
Expected stock price volatility (as a percent) | 26.50% |
Correlation coefficient | 0.89 |
2018 | |
Deferred Compensation Awards | |
Risk-free interest rate (as a percent) | 2.20% |
Expected stock price volatility (as a percent) | 26.80% |
Correlation coefficient | 0.89 |
2017 | |
Deferred Compensation Awards | |
Risk-free interest rate (as a percent) | 1.50% |
Expected stock price volatility (as a percent) | 27.00% |
Correlation coefficient | 0.89 |
Deferred Compensation Plans _13
Deferred Compensation Plans and Carried Interest Compensation - Deferred Cash-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation Related Costs [Abstract] | |||
Deferred cash-based awards | $ 1,233 | $ 1,174 | $ 1,039 |
Return on referenced investments | 645 | (48) | 499 |
Total | 1,878 | 1,126 | 1,538 |
Retirement eligible awards | $ 195 | $ 193 | $ 176 |
Deferred Compensation Plans _14
Deferred Compensation Plans and Carried Interest Compensation - Carried Interest Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation Related Costs [Abstract] | |||
Carried interest compensation expense | $ 534 | $ 156 | $ 197 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Expense (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans | |||
Components of Net Periodic Benefit Expense (Income) | |||
Service cost, benefits earned during the period | $ 16 | $ 16 | $ 16 |
Interest cost on projected benefit obligation | 139 | 134 | 146 |
Expected return on plan assets | (114) | (112) | (117) |
Net amortization of prior service cost (credit) | 1 | (1) | 0 |
Net amortization of actuarial loss (gain) | 13 | 26 | 17 |
Net periodic benefit expense (income) | 55 | 63 | 62 |
Other Postretirement Plans | |||
Components of Net Periodic Benefit Expense (Income) | |||
Service cost, benefits earned during the period | 1 | 1 | 1 |
Interest cost on projected benefit obligation | 2 | 3 | 3 |
Net amortization of prior service cost (credit) | 0 | (1) | (16) |
Net periodic benefit expense (income) | $ 3 | $ 3 | $ (12) |
Employee Benefit Plans - Rollfo
Employee Benefit Plans - Rollforward of Pre-tax AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans | |||
Rollforward of Pre-tax AOCI | |||
Beginning balance | $ (779) | $ (947) | $ (761) |
Net gain (loss) | (112) | 158 | (205) |
Prior service credit (cost) | 0 | (15) | 2 |
Amortization of prior service cost (credit) | 1 | (1) | 0 |
Amortization of net loss | 13 | 26 | 17 |
Changes recognized in OCI | (98) | 168 | (186) |
Ending balance | (877) | (779) | (947) |
Other Postretirement Plans | |||
Rollforward of Pre-tax AOCI | |||
Beginning balance | 13 | 1 | 17 |
Net gain (loss) | 13 | 13 | 0 |
Amortization of prior service cost (credit) | 0 | (1) | (16) |
Changes recognized in OCI | 13 | 12 | (16) |
Ending balance | $ 26 | $ 13 | $ 1 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense (Income) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans | |||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense (Income) | |||
Discount rate (as a percent) | 4.01% | 3.46% | 4.01% |
Expected long-term rate of return on plan assets (as a percent) | 3.52% | 3.50% | 3.52% |
Rate of future compensation increases (as a percent) | 3.34% | 3.38% | 3.10% |
Other Postretirement Plans | |||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense (Income) | |||
Discount rate (as a percent) | 4.07% | 3.44% | 4.01% |
Employee Benefit Plans - Roll_2
Employee Benefit Plans - Rollforward of the Benefit Obligation and Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amounts recognized in the balance sheets | |||
Liabilities | $ (53) | ||
Pension Plans | |||
Rollforward of benefit obligation | |||
Benefit obligation at beginning of year | 3,563 | $ 3,966 | |
Service cost | 16 | 16 | $ 16 |
Interest cost | 139 | 134 | 146 |
Actuarial loss (gain) | 497 | (340) | |
Plan amendments | 0 | 15 | |
Plan settlements | (9) | (11) | |
Benefits paid | (191) | (195) | |
Other | 11 | (22) | |
Benefit obligation at end of year | 4,026 | 3,563 | 3,966 |
Rollforward of fair value of plan assets | |||
Balance at beginning of period | 3,203 | 3,468 | |
Actual return on plan assets | 499 | (69) | |
Employer contributions | 36 | 34 | |
Benefits paid | (191) | (195) | |
Plan settlements | (9) | (11) | |
Other | 15 | (24) | |
Balance at end of period | 3,553 | 3,203 | 3,468 |
Funded (unfunded) status | (473) | (360) | |
Amounts recognized in the balance sheets | |||
Assets | 98 | 151 | |
Liabilities | (571) | (511) | |
Net amount recognized | (473) | (360) | |
Other Postretirement Plans | |||
Rollforward of benefit obligation | |||
Benefit obligation at beginning of year | 71 | 86 | |
Service cost | 1 | 1 | 1 |
Interest cost | 2 | 3 | 3 |
Actuarial loss (gain) | (13) | (13) | |
Plan amendments | 0 | 0 | |
Plan settlements | 0 | 0 | |
Benefits paid | (5) | (6) | |
Other | 0 | 0 | |
Benefit obligation at end of year | 56 | 71 | 86 |
Rollforward of fair value of plan assets | |||
Balance at beginning of period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 5 | 6 | |
Benefits paid | (5) | (6) | |
Plan settlements | 0 | 0 | |
Other | 0 | 0 | |
Balance at end of period | 0 | 0 | $ 0 |
Funded (unfunded) status | (56) | (71) | |
Amounts recognized in the balance sheets | |||
Assets | 0 | 0 | |
Liabilities | (56) | (71) | |
Net amount recognized | $ (56) | $ (71) |
Employee Benefit Plans - Accumu
Employee Benefit Plans - Accumulated Benefit Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plans | ||
Pension and Other Postretirement Plans | ||
Accumulated benefit obligation | $ 4,013 | $ 3,546 |
Employee Benefit Plans - Pensio
Employee Benefit Plans - Pension Plans with Benefit Obligations in Excess of the Fair Value of Plan Assets (Details) - Pension Plans - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plans with Benefit Obligations in Excess of the Fair Value of Plan Assets | ||
Projected benefit obligation | $ 637 | $ 575 |
Accumulated benefit obligation | 624 | 559 |
Fair value of plan assets | $ 66 | $ 64 |
Employee Benefit Plans - Weig_2
Employee Benefit Plans - Weighted Average Assumptions Used to Determine Benefit Obligation (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plans | ||
Weighted Average Assumptions Used to Determine Benefit Obligation | ||
Discount rate (as a percent) | 3.08% | 4.01% |
Rate of future compensation increase (as a percent) | 3.28% | 3.34% |
Other Postretirement Plans | ||
Weighted Average Assumptions Used to Determine Benefit Obligation | ||
Discount rate (as a percent) | 3.11% | 4.07% |
Employee Benefit Plans - Assume
Employee Benefit Plans - Assumed Health Care Cost Trend Rates Used to Determine the U.S. Postretirement Benefit Obligation (Details) - Other Postretirement Plans - U.S. | Dec. 31, 2019 | Dec. 31, 2018 |
Assumed Health Care Cost Trend Rates | ||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) (as a percent) | 4.41% | 4.50% |
Medical | ||
Assumed Health Care Cost Trend Rates | ||
Health care cost trend rate assumed for next year (as a percent) | 5.48% | 5.66% |
Prescription | ||
Assumed Health Care Cost Trend Rates | ||
Health care cost trend rate assumed for next year (as a percent) | 8.00% | 7.66% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension and Other Postretirement Plans | |||
Liabilities | $ (53) | ||
Derivative contracts | |||
Pension and Other Postretirement Plans | |||
Liabilities | (1) | ||
Other payables | |||
Pension and Other Postretirement Plans | |||
Liabilities | (52) | ||
Level 1 | |||
Pension and Other Postretirement Plans | |||
Liabilities | 0 | ||
Level 1 | Derivative contracts | |||
Pension and Other Postretirement Plans | |||
Liabilities | 0 | ||
Level 1 | Other payables | |||
Pension and Other Postretirement Plans | |||
Liabilities | 0 | ||
Level 2 | |||
Pension and Other Postretirement Plans | |||
Liabilities | (53) | ||
Level 2 | Derivative contracts | |||
Pension and Other Postretirement Plans | |||
Liabilities | (1) | ||
Level 2 | Other payables | |||
Pension and Other Postretirement Plans | |||
Liabilities | (52) | ||
Level 3 | |||
Pension and Other Postretirement Plans | |||
Liabilities | 0 | ||
Level 3 | Derivative contracts | |||
Pension and Other Postretirement Plans | |||
Liabilities | 0 | ||
Level 3 | Other payables | |||
Pension and Other Postretirement Plans | |||
Liabilities | 0 | ||
Pension Plans | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 3,553 | $ 3,203 | $ 3,468 |
Liabilities | (571) | (511) | |
Pension Plans | Assets | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 3,063 | 2,598 | |
Pension Plans | Cash and Cash Equivalents | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 3 | 3 | |
Pension Plans | Total U.S. government and agency securities | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 2,950 | 2,514 | |
Pension Plans | U.S. Treasury securities | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 2,658 | 2,197 | |
Pension Plans | U.S. agency securities | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 292 | 317 | |
Pension Plans | Corporate and other debt—CDO | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 9 | 11 | |
Pension Plans | Derivative contracts | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 22 | ||
Pension Plans | Other investments | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 53 | 48 | |
Pension Plans | Other receivables | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 48 | ||
Pension Plans | Level 1 | Assets | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 2,661 | 2,200 | |
Pension Plans | Level 1 | Cash and Cash Equivalents | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 3 | 3 | |
Pension Plans | Level 1 | Total U.S. government and agency securities | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 2,658 | 2,197 | |
Pension Plans | Level 1 | U.S. Treasury securities | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 2,658 | 2,197 | |
Pension Plans | Level 1 | U.S. agency securities | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | Level 1 | Corporate and other debt—CDO | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | Level 1 | Derivative contracts | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | ||
Pension Plans | Level 1 | Other investments | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | Level 1 | Other receivables | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | ||
Pension Plans | Level 2 | Assets | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 349 | 350 | |
Pension Plans | Level 2 | Cash and Cash Equivalents | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | Level 2 | Total U.S. government and agency securities | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 292 | 317 | |
Pension Plans | Level 2 | U.S. Treasury securities | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | Level 2 | U.S. agency securities | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 292 | 317 | |
Pension Plans | Level 2 | Corporate and other debt—CDO | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 9 | 11 | |
Pension Plans | Level 2 | Derivative contracts | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 22 | ||
Pension Plans | Level 2 | Other investments | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | Level 2 | Other receivables | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 48 | ||
Pension Plans | Level 3 | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 53 | 48 | $ 47 |
Pension Plans | Level 3 | Assets | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 53 | 48 | |
Pension Plans | Level 3 | Cash and Cash Equivalents | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | Level 3 | Total U.S. government and agency securities | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | Level 3 | U.S. Treasury securities | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | Level 3 | U.S. agency securities | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | Level 3 | Corporate and other debt—CDO | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans | Level 3 | Derivative contracts | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | ||
Pension Plans | Level 3 | Other investments | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 53 | 48 | |
Pension Plans | Level 3 | Other receivables | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 0 | ||
Pension Plans | Measured at NAV | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 543 | 605 | |
Pension Plans | Measured at NAV | Commingled Trust Funds: Money Market | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 137 | 252 | |
Pension Plans | Measured at NAV | Foreign Funds: Fixed Income | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 136 | 134 | |
Pension Plans | Measured at NAV | Foreign Funds: Liquidity | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | 30 | 12 | |
Pension Plans | Measured at NAV | Foreign Funds: Targeted Cash Flow | |||
Pension and Other Postretirement Plans | |||
Fair value of plan assets | $ 240 | $ 207 |
- Rollforward of Level 3 Plan A
- Rollforward of Level 3 Plan Assets (Details) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension and Other Postretirement Plans | ||
Balance at beginning of period | $ 3,203 | $ 3,468 |
Balance at end of period | 3,553 | 3,203 |
Level 3 | ||
Pension and Other Postretirement Plans | ||
Balance at beginning of period | 48 | 47 |
Actual return on plan assets related to assets held at end of period | 3 | 0 |
Purchases, sales, other settlements and issuances, net | 2 | 1 |
Balance at end of period | $ 53 | $ 48 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension and Other Postretirement Plans | |||
Expected contributions by employer in 2020 | $ 50 | ||
Morgan Stanley 401(k) Plan | |||
Pension and Other Postretirement Plans | |||
Maximum proportion of employer matching contributions (as a percent) | 4.00% | 4.00% | 4.00% |
Morgan Stanley 401(k) Plan | Eligible U.S. Employees with Eligible Pay Less than or Equal to $100,000 | |||
Pension and Other Postretirement Plans | |||
Proportion of employer matching contribution of eligible pay (as a percent) | 2.00% | ||
U.S. Qualified Plan | |||
Pension and Other Postretirement Plans | |||
Proportion of assets as to total pension plan assets (as a percent) | 87.00% |
- Expected Future Benefit Payme
- Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Pension Plans | |
Pension and Other Postretirement Plans | |
2020 | $ 149 |
2021 | 151 |
2022 | 153 |
2023 | 159 |
2024 | 163 |
2025-2029 | 911 |
Other Postretirement Plans | |
Pension and Other Postretirement Plans | |
2020 | 4 |
2021 | 4 |
2022 | 5 |
2023 | 5 |
2024 | 5 |
2025-2029 | $ 18 |
Employee Benefit Plans - 401(k)
Employee Benefit Plans - 401(k) and Defined Contribution Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Morgan Stanley 401(k) Plan | |||
Defined Contribution Plans | |||
Expense | $ 280 | $ 272 | $ 258 |
Non-U.S. Defined Contribution Pension Plans | |||
Defined Contribution Plans | |||
Expense | $ 121 | $ 116 | $ 106 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||||||||||
U.S. federal | $ 873 | $ 686 | $ 476 | ||||||||
U.S. state and local | 260 | 207 | 125 | ||||||||
Current income tax expense (benefit) | 1,899 | 1,901 | 1,414 | ||||||||
Deferred | |||||||||||
U.S. federal | 185 | 330 | 2,656 | ||||||||
U.S. state and local | 46 | 56 | 84 | ||||||||
Deferred income tax expense (benefit) | 165 | 449 | 2,754 | ||||||||
Provision for income taxes from continuing operations | $ 428 | $ 492 | $ 657 | $ 487 | $ 300 | $ 696 | $ 640 | $ 714 | 2,064 | 2,350 | 4,168 |
Provision for (benefit from) income taxes from discontinued operations | 0 | (1) | (7) | ||||||||
U.K. | |||||||||||
Current | |||||||||||
Non-U.S. | 166 | 328 | 401 | ||||||||
Deferred | |||||||||||
Non-U.S. | 5 | 54 | 18 | ||||||||
Japan | |||||||||||
Current | |||||||||||
Non-U.S. | 177 | 268 | 56 | ||||||||
Deferred | |||||||||||
Non-U.S. | 11 | (10) | (17) | ||||||||
Hong Kong | |||||||||||
Current | |||||||||||
Non-U.S. | 82 | 94 | 48 | ||||||||
Deferred | |||||||||||
Non-U.S. | 0 | (3) | (2) | ||||||||
Other1 | |||||||||||
Current | |||||||||||
Non-U.S. | 341 | 318 | 308 | ||||||||
Deferred | |||||||||||
Non-U.S. | $ (82) | $ 22 | $ 15 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
U.S. state and local income taxes, net of U.S. federal income tax benefits | 2.20% | 2.00% | 1.40% |
Domestic tax credits | (1.50%) | (0.90%) | (1.60%) |
Tax exempt income | (0.10%) | (0.40%) | (0.10%) |
Non-U.S. earnings | (0.80%) | 1.30% | (5.00%) |
Tax Act enactment | 0.00% | 0.00% | 11.50% |
Employee share-based awards | (1.10%) | (1.50%) | (1.50%) |
Other | (1.40%) | (0.60%) | 0.40% |
Effective income tax rate | 18.30% | 20.90% | 40.10% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Intermittent net discrete tax provision (benefit) | $ (348) | $ (203) | $ 968 |
Discrete tax provision as a result of the Tax Act | 1,200 | ||
Net discrete tax provision (benefit) primarily associated with the remeasurement of reserves and related interest | $ (233) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Gross deferred tax assets | ||
Net operating loss and tax credit carryforwards | $ 287 | $ 264 |
Employee compensation and benefit plans | 2,075 | 2,053 |
Valuation and liability allowances | 318 | 318 |
Valuation of inventory, investments and receivables | 368 | 242 |
Total deferred tax assets | 3,048 | 2,877 |
Deferred tax assets valuation allowance | 156 | 143 |
Deferred tax assets after valuation allowance | 2,892 | 2,734 |
Gross deferred tax liabilities | ||
Fixed assets | 983 | 825 |
Other | 411 | 236 |
Total deferred tax liabilities | 1,394 | 1,061 |
Net deferred tax assets | $ 1,498 | $ 1,673 |
Income Taxes - Rollforward of U
Income Taxes - Rollforward of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Rollforward of Unrecognized Tax Benefits | |||
Balance at beginning of period | $ 1,080 | $ 1,594 | $ 1,851 |
Increase based on tax positions related to the current period | 57 | 83 | 63 |
Increase based on tax positions related to prior periods | 61 | 34 | 170 |
Decrease based on tax positions related to prior periods | (419) | (404) | (312) |
Decreases related to settlements with taxing authorities | (17) | (139) | (155) |
Decreases related to lapse of statute of limitations | (7) | (88) | (23) |
Balance at end of period | 755 | 1,080 | 1,594 |
Net unrecognized tax benefits | $ 549 | $ 746 | $ 873 |
Income Taxes - Interest Expense
Income Taxes - Interest Expense (Benefit), Net of Federal and State Income Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Expense (Benefit) Net of Federal and State Income Tax Benefits | |||
Recognized in income statements | $ 8 | $ (40) | $ (3) |
Accrued at end of period | $ 92 | $ 91 | $ 147 |
Segment, Geographic and Reven_3
Segment, Geographic and Revenue Information - Selected Financial Information by Business Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information | |||||||||||
Investment banking | $ 6,163 | $ 6,482 | $ 6,003 | ||||||||
Trading | 11,095 | 11,551 | 11,116 | ||||||||
Investments | 1,540 | 437 | 820 | ||||||||
Commissions and fees | 3,919 | 4,190 | 4,061 | ||||||||
Asset management | 13,083 | 12,898 | 11,797 | ||||||||
Other | 925 | 743 | 848 | ||||||||
Total non-interest revenues | $ 9,424 | $ 8,814 | $ 9,215 | $ 9,272 | $ 7,559 | $ 8,936 | $ 9,704 | $ 10,102 | 36,725 | 36,301 | 34,645 |
Interest income | 17,098 | 13,892 | 8,997 | ||||||||
Interest expense | 12,404 | 10,086 | 5,697 | ||||||||
Net interest | 1,433 | 1,218 | 1,029 | 1,014 | 989 | 936 | 906 | 975 | 4,694 | 3,806 | 3,300 |
Net revenues | 10,857 | 10,032 | 10,244 | 10,286 | 8,548 | 9,872 | 10,610 | 11,077 | 41,419 | 40,107 | 37,945 |
Income from continuing operations before income taxes | 2,733 | 2,710 | 2,903 | 2,955 | 1,857 | 2,851 | 3,109 | 3,420 | 11,301 | 11,237 | 10,403 |
Provision for income taxes | 428 | 492 | 657 | 487 | 300 | 696 | 640 | 714 | 2,064 | 2,350 | 4,168 |
Income from continuing operations | 2,305 | 2,218 | 2,246 | 2,468 | 1,557 | 2,155 | 2,469 | 2,706 | 9,237 | 8,887 | 6,235 |
Income (loss) from discontinued operations, net of income taxes | 1 | (1) | (2) | (2) | 0 | (4) | (19) | ||||
Net income | 2,305 | 2,218 | 2,246 | 2,468 | 1,558 | 2,154 | 2,467 | 2,704 | 9,237 | 8,883 | 6,216 |
Net income applicable to noncontrolling interests | 66 | 45 | 45 | 39 | 27 | 42 | 30 | 36 | 195 | 135 | 105 |
Net income applicable to Morgan Stanley | $ 2,239 | $ 2,173 | $ 2,201 | $ 2,429 | $ 1,531 | $ 2,112 | $ 2,437 | $ 2,668 | 9,042 | 8,748 | 6,111 |
Operating Segments | |||||||||||
Segment Reporting Information | |||||||||||
Provision for income taxes | (475) | (368) | 813 | ||||||||
I/E | |||||||||||
Segment Reporting Information | |||||||||||
Investment banking | (80) | (81) | (67) | ||||||||
Trading | 51 | 56 | (5) | ||||||||
Investments | 0 | 0 | 0 | ||||||||
Commissions and fees | (292) | (285) | (109) | ||||||||
Asset management | (158) | (149) | (100) | ||||||||
Other | (6) | (10) | (13) | ||||||||
Total non-interest revenues | (485) | (469) | (294) | ||||||||
Interest income | (582) | (934) | (975) | ||||||||
Interest expense | (600) | (940) | (979) | ||||||||
Net interest | 18 | 6 | 4 | ||||||||
Net revenues | (467) | (463) | (290) | ||||||||
Income from continuing operations before income taxes | (6) | (8) | 4 | ||||||||
Provision for income taxes | (2) | (2) | 0 | ||||||||
Income from continuing operations | (4) | (6) | 4 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income | (4) | (6) | 4 | ||||||||
Net income applicable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income applicable to Morgan Stanley | (4) | (6) | 4 | ||||||||
IS | |||||||||||
Segment Reporting Information | |||||||||||
Provision for income taxes | (400) | (286) | 378 | ||||||||
IS | Operating Segments | |||||||||||
Segment Reporting Information | |||||||||||
Investment banking | 5,734 | 6,088 | 5,537 | ||||||||
Trading | 10,318 | 11,191 | 10,295 | ||||||||
Investments | 325 | 182 | 368 | ||||||||
Commissions and fees | 2,484 | 2,671 | 2,433 | ||||||||
Asset management | 413 | 421 | 359 | ||||||||
Other | 632 | 535 | 630 | ||||||||
Total non-interest revenues | 19,906 | 21,088 | 19,622 | ||||||||
Interest income | 12,193 | 9,271 | 5,377 | ||||||||
Interest expense | 11,713 | 9,777 | 6,186 | ||||||||
Net interest | 480 | (506) | (809) | ||||||||
Net revenues | 20,386 | 20,582 | 18,813 | ||||||||
Income from continuing operations before income taxes | 5,490 | 6,260 | 5,644 | ||||||||
Provision for income taxes | 769 | 1,230 | 1,993 | ||||||||
Income from continuing operations | 4,721 | 5,030 | 3,651 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | (6) | (19) | ||||||||
Net income | 4,721 | 5,024 | 3,632 | ||||||||
Net income applicable to noncontrolling interests | 122 | 118 | 96 | ||||||||
Net income applicable to Morgan Stanley | 4,599 | 4,906 | 3,536 | ||||||||
WM | |||||||||||
Segment Reporting Information | |||||||||||
Provision for income taxes | (50) | (50) | 357 | ||||||||
WM | Operating Segments | |||||||||||
Segment Reporting Information | |||||||||||
Investment banking | 509 | 475 | 533 | ||||||||
Trading | 734 | 279 | 848 | ||||||||
Investments | 2 | 1 | 3 | ||||||||
Commissions and fees | 1,726 | 1,804 | 1,737 | ||||||||
Asset management | 10,199 | 10,158 | 9,342 | ||||||||
Other | 345 | 248 | 268 | ||||||||
Total non-interest revenues | 13,515 | 12,965 | 12,731 | ||||||||
Interest income | 5,467 | 5,498 | 4,591 | ||||||||
Interest expense | 1,245 | 1,221 | 486 | ||||||||
Net interest | 4,222 | 4,277 | 4,105 | ||||||||
Net revenues | 17,737 | 17,242 | 16,836 | ||||||||
Income from continuing operations before income taxes | 4,832 | 4,521 | 4,299 | ||||||||
Provision for income taxes | 1,104 | 1,049 | 1,974 | ||||||||
Income from continuing operations | 3,728 | 3,472 | 2,325 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income | 3,728 | 3,472 | 2,325 | ||||||||
Net income applicable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income applicable to Morgan Stanley | 3,728 | 3,472 | 2,325 | ||||||||
IM | |||||||||||
Segment Reporting Information | |||||||||||
Provision for income taxes | (25) | (32) | 78 | ||||||||
IM | Operating Segments | |||||||||||
Segment Reporting Information | |||||||||||
Investment banking | 0 | 0 | 0 | ||||||||
Trading | (8) | 25 | (22) | ||||||||
Investments | 1,213 | 254 | 449 | ||||||||
Commissions and fees | 1 | 0 | 0 | ||||||||
Asset management | 2,629 | 2,468 | 2,196 | ||||||||
Other | (46) | (30) | (37) | ||||||||
Total non-interest revenues | 3,789 | 2,717 | 2,586 | ||||||||
Interest income | 20 | 57 | 4 | ||||||||
Interest expense | 46 | 28 | 4 | ||||||||
Net interest | (26) | 29 | 0 | ||||||||
Net revenues | 3,763 | 2,746 | 2,586 | ||||||||
Income from continuing operations before income taxes | 985 | 464 | 456 | ||||||||
Provision for income taxes | 193 | 73 | 201 | ||||||||
Income from continuing operations | 792 | 391 | 255 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 2 | 0 | ||||||||
Net income | 792 | 393 | 255 | ||||||||
Net income applicable to noncontrolling interests | 73 | 17 | 9 | ||||||||
Net income applicable to Morgan Stanley | $ 719 | $ 376 | $ 246 |
Segment, Geographic and Reven_4
Segment, Geographic and Revenue Information - Institutional Securities - Investment Banking Revenues (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | ||||
Investment banking | $ 6,163 | $ 6,482 | $ 6,003 | |
Accounting Standards Update 2014-09 | ||||
Revenue from External Customer [Line Items] | ||||
Firm Investment banking revenues from contracts with customers (as a percent) | 90.00% | 86.00% | ||
IS | Operating Segments | ||||
Revenue from External Customer [Line Items] | ||||
Investment banking | 5,734 | $ 6,088 | 5,537 | |
IS | Operating Segments | Advisory | ||||
Revenue from External Customer [Line Items] | ||||
Investment banking | 2,116 | 2,436 | 2,077 | |
IS | Operating Segments | Underwriting | ||||
Revenue from External Customer [Line Items] | ||||
Investment banking | $ 3,618 | $ 3,652 | $ 3,460 |
Segment, Geographic and Reven_5
Segment, Geographic and Revenue Information - Trading Revenues by Product Type (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue | |||
Trading revenues | $ 11,095 | $ 11,551 | $ 11,116 |
Interest rate | |||
Disaggregation of Revenue | |||
Trading revenues | 2,773 | 2,696 | 2,091 |
Foreign exchange | |||
Disaggregation of Revenue | |||
Trading revenues | 395 | 914 | 647 |
Equity security and index | |||
Disaggregation of Revenue | |||
Trading revenues | 5,246 | 6,157 | 6,291 |
Commodity and other | |||
Disaggregation of Revenue | |||
Trading revenues | 1,438 | 1,174 | 740 |
Credit | |||
Disaggregation of Revenue | |||
Trading revenues | $ 1,243 | $ 610 | $ 1,347 |
Segment, Geographic and Reven_6
Segment, Geographic and Revenue Information - Investment Management Investments Revenues - Net Unrealized Carried Interest (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting [Abstract] | ||
Net cumulative unrealized performance-based fees at risk of reversing | $ 774 | $ 434 |
Segment, Geographic and Reven_7
Segment, Geographic and Revenue Information - Investment Management Asset Management Revenues - Reduction of Fees due to Fee Waivers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||
Fee waivers | $ 43 | $ 56 | $ 86 |
Segment, Geographic and Reven_8
Segment, Geographic and Revenue Information - Income from Continuing Operations before Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information | |||||||||||
Income from continuing operations before income taxes | $ 2,733 | $ 2,710 | $ 2,903 | $ 2,955 | $ 1,857 | $ 2,851 | $ 3,109 | $ 3,420 | $ 11,301 | $ 11,237 | $ 10,403 |
U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Income from continuing operations before income taxes | 9,464 | 7,804 | 5,686 | ||||||||
Non-U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Income from continuing operations before income taxes | $ 1,837 | $ 3,433 | $ 4,717 |
Segment, Geographic and Reven_9
Segment, Geographic and Revenue Information - Net Discrete Tax Provisions (Benefits) by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information | |||||||||||
Remeasurement of reserves and related interest | $ (158) | $ (111) | |||||||||
Total | $ 428 | $ 492 | $ 657 | $ 487 | $ 300 | $ 696 | $ 640 | $ 714 | $ 2,064 | $ 2,350 | $ 4,168 |
IS | |||||||||||
Segment Reporting Information | |||||||||||
Tax Act enactment | 705 | ||||||||||
Remeasurement of reserves and related interest | (168) | ||||||||||
Other | (66) | ||||||||||
Intermittent net discrete tax provision (benefit) | (317) | (182) | 471 | ||||||||
Recurring: Employee share-based awards | (83) | (104) | (93) | ||||||||
Total | (400) | (286) | 378 | ||||||||
WM | |||||||||||
Segment Reporting Information | |||||||||||
Tax Act enactment | 402 | ||||||||||
Remeasurement of reserves and related interest | 0 | ||||||||||
Other | 9 | ||||||||||
Intermittent net discrete tax provision (benefit) | (13) | 0 | 411 | ||||||||
Recurring: Employee share-based awards | (37) | (50) | (54) | ||||||||
Total | (50) | (50) | 357 | ||||||||
IM | |||||||||||
Segment Reporting Information | |||||||||||
Tax Act enactment | 94 | ||||||||||
Remeasurement of reserves and related interest | 0 | ||||||||||
Other | (8) | ||||||||||
Intermittent net discrete tax provision (benefit) | (18) | (21) | 86 | ||||||||
Recurring: Employee share-based awards | (7) | (11) | (8) | ||||||||
Total | (25) | (32) | 78 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information | |||||||||||
Tax Act enactment | 1,201 | ||||||||||
Remeasurement of reserves and related interest | (168) | ||||||||||
Other | (65) | ||||||||||
Intermittent net discrete tax provision (benefit) | (348) | (203) | 968 | ||||||||
Recurring: Employee share-based awards | (127) | (165) | (155) | ||||||||
Total | (475) | (368) | 813 | ||||||||
Operating Segments | IS | |||||||||||
Segment Reporting Information | |||||||||||
Total | 769 | 1,230 | 1,993 | ||||||||
Operating Segments | WM | |||||||||||
Segment Reporting Information | |||||||||||
Total | 1,104 | 1,049 | 1,974 | ||||||||
Operating Segments | IM | |||||||||||
Segment Reporting Information | |||||||||||
Total | $ 193 | $ 73 | $ 201 |
Segment, Geographic and Reve_10
Segment, Geographic and Revenue Information - Net Revenues by Region (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information | |||||||||||
Net revenues | $ 10,857 | $ 10,032 | $ 10,244 | $ 10,286 | $ 8,548 | $ 9,872 | $ 10,610 | $ 11,077 | $ 41,419 | $ 40,107 | $ 37,945 |
Americas | |||||||||||
Segment Reporting Information | |||||||||||
Net revenues | 30,226 | 29,301 | 27,817 | ||||||||
EMEA | |||||||||||
Segment Reporting Information | |||||||||||
Net revenues | 6,061 | 6,092 | 5,714 | ||||||||
Asia | |||||||||||
Segment Reporting Information | |||||||||||
Net revenues | $ 5,132 | $ 4,714 | $ 4,414 |
Segment, Geographic and Reve_11
Segment, Geographic and Revenue Information - Revenue Recognized from Prior Services (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting [Abstract] | ||
Non-interest revenues | $ 2,705 | $ 2,821 |
Segment, Geographic and Reve_12
Segment, Geographic and Revenue Information - Receivables from Contracts with Customers (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting [Abstract] | ||
Customer and other receivables | $ 2,916 | $ 2,308 |
Segment, Geographic and Reve_13
Segment, Geographic and Revenue Information - Assets by Business Segment (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information | ||
Assets | $ 895,429 | $ 853,531 |
Institutional Securities | ||
Segment Reporting Information | ||
Assets | 691,201 | 646,427 |
Wealth Management | ||
Segment Reporting Information | ||
Assets | 197,682 | 202,392 |
Investment Management | ||
Segment Reporting Information | ||
Assets | $ 6,546 | $ 4,712 |
Segment, Geographic and Reve_14
Segment, Geographic and Revenue Information - Assets by Region (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information | ||
Assets | $ 895,429 | $ 853,531 |
Americas | ||
Segment Reporting Information | ||
Assets | 622,979 | 576,532 |
EMEA | ||
Segment Reporting Information | ||
Assets | 185,093 | 200,194 |
Asia | ||
Segment Reporting Information | ||
Assets | $ 87,357 | $ 76,805 |
Parent Company - Condensed Inco
Parent Company - Condensed Income Statements and Comprehensive Income Statements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||||||||||
Trading | $ 11,095 | $ 11,551 | $ 11,116 | ||||||||
Other | 2,369 | 2,482 | 2,385 | ||||||||
Total non-interest revenues | $ 9,424 | $ 8,814 | $ 9,215 | $ 9,272 | $ 7,559 | $ 8,936 | $ 9,704 | $ 10,102 | 36,725 | 36,301 | 34,645 |
Interest income | 17,098 | 13,892 | 8,997 | ||||||||
Interest expense | 12,404 | 10,086 | 5,697 | ||||||||
Net interest | 1,433 | 1,218 | 1,029 | 1,014 | 989 | 936 | 906 | 975 | 4,694 | 3,806 | 3,300 |
Net revenues | 10,857 | 10,032 | 10,244 | 10,286 | 8,548 | 9,872 | 10,610 | 11,077 | 41,419 | 40,107 | 37,945 |
Total non-interest expenses | 8,124 | 7,322 | 7,341 | 7,331 | 6,691 | 7,021 | 7,501 | 7,657 | 30,118 | 28,870 | 27,542 |
Provision for (benefit from) income taxes | 428 | 492 | 657 | 487 | 300 | 696 | 640 | 714 | 2,064 | 2,350 | 4,168 |
Undistributed gain of subsidiaries | 4,070 | ||||||||||
Net income | 2,305 | 2,218 | 2,246 | 2,468 | 1,558 | 2,154 | 2,467 | 2,704 | 9,237 | 8,883 | 6,216 |
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | 3 | (90) | 251 | ||||||||
Change in net unrealized gains (losses) on available-for-sale securities | 1,137 | (272) | 41 | ||||||||
Change in net debt valuation adjustment | (1,639) | 1,517 | (588) | ||||||||
Comprehensive income | 8,672 | 10,175 | 5,803 | ||||||||
Net income | 2,305 | 2,218 | 2,246 | 2,468 | 1,558 | 2,154 | 2,467 | 2,704 | 9,237 | 8,883 | 6,216 |
Preferred stock dividends and other | 154 | 113 | 170 | 93 | 170 | 93 | 170 | 93 | 530 | 526 | 523 |
Earnings applicable to Morgan Stanley common shareholders | $ 2,085 | $ 2,060 | $ 2,031 | $ 2,336 | $ 1,361 | $ 2,019 | $ 2,267 | $ 2,575 | 8,512 | 8,222 | 5,588 |
Parent Company | |||||||||||
Revenues | |||||||||||
Dividends from subsidiaries | 5,529 | 4,973 | 2,567 | ||||||||
Trading | (54) | 54 | (260) | ||||||||
Other | 80 | (5) | 64 | ||||||||
Total non-interest revenues | 5,555 | 5,022 | 2,371 | ||||||||
Interest income | 5,121 | 5,172 | 3,783 | ||||||||
Interest expense | 4,661 | 4,816 | 4,079 | ||||||||
Net interest | 460 | 356 | (296) | ||||||||
Net revenues | 6,015 | 5,378 | 2,075 | ||||||||
Total non-interest expenses | 300 | 225 | 240 | ||||||||
Income before income taxes | 5,715 | 5,153 | 1,835 | ||||||||
Provision for (benefit from) income taxes | (73) | 22 | (206) | ||||||||
Net income before undistributed gain of subsidiaries | 5,788 | 5,131 | 2,041 | ||||||||
Undistributed gain of subsidiaries | 3,254 | 3,617 | |||||||||
Net income | 9,042 | 8,748 | 6,111 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | (8) | (114) | 219 | ||||||||
Change in net unrealized gains (losses) on available-for-sale securities | 1,137 | (272) | 41 | ||||||||
Pensions, postretirement and other | (66) | 137 | (117) | ||||||||
Change in net debt valuation adjustment | (1,559) | 1,454 | (560) | ||||||||
Comprehensive income | 8,546 | 9,953 | 5,694 | ||||||||
Net income | 9,042 | 8,748 | 6,111 | ||||||||
Preferred stock dividends and other | 530 | 526 | 523 | ||||||||
Earnings applicable to Morgan Stanley common shareholders | 8,512 | 8,222 | $ 5,588 | ||||||||
Dividends from bank subsidiaries | $ 4,000 | $ 3,000 |
Parent Company - Condensed Bala
Parent Company - Condensed Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents: | |||
Cash and due from banks | $ 4,293 | $ 30,541 | $ 24,816 |
Restricted cash | 32,512 | 35,356 | 34,231 |
Trading assets at fair value | 297,110 | 266,299 | |
Investment securities | 105,725 | 91,832 | |
Equity investments in subsidiaries: | |||
Other assets | 20,117 | 15,641 | |
Total assets | 895,429 | 853,531 | |
Liabilities | |||
Trading liabilities at fair value | 133,356 | 126,747 | |
Securities sold under agreements to repurchase with affiliates | 54,200 | 49,759 | |
Other liabilities and accrued expenses | 21,155 | 17,204 | |
Borrowings | 192,627 | 189,662 | |
Total liabilities | 812,732 | 772,125 | |
Commitments and contingent liabilities (see Note 13) | |||
Equity | |||
Preferred stock | 8,520 | 8,520 | |
Common stock | 20 | 20 | |
Additional paid-in capital | 23,935 | 23,794 | |
Retained earnings | 70,589 | 64,175 | |
Employee stock trusts | 2,918 | 2,836 | |
Accumulated other comprehensive income (loss) | (2,788) | (2,292) | |
Common stock held in treasury at cost | (18,727) | (13,971) | |
Common stock issued to employee stock trusts | (2,918) | (2,836) | |
Total shareholders’ equity | 82,697 | 81,406 | $ 78,466 |
Total liabilities and equity | 895,429 | 853,531 | |
Statement of Financial Position Parenthetical Disclosures [Abstract] | |||
Investment securities at fair value | 62,223 | 61,061 | |
Borrowings at fair value | $ 64,461 | $ 51,184 | |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Common stock authorized (shares) | 3,500,000,000 | 3,500,000,000 | |
Common stock issued (shares) | 2,038,893,979 | 2,038,893,979 | |
Common stock outstanding (shares) | 1,593,973,680 | 1,699,828,943 | 1,788,000,000 |
Common stock held in treasury (shares) | 444,920,299 | 339,065,036 | |
Parent Company | |||
Cash and cash equivalents: | |||
Cash and due from banks | $ 9 | $ 6 | $ 11 |
Deposits with bank subsidiaries | 8,001 | 7,476 | 8,120 |
Restricted cash | 0 | 0 | $ 1 |
Trading assets at fair value | 5,747 | 10,039 | |
Investment securities | 37,253 | 22,588 | |
Securities purchased under agreement to resell with affiliates | 10,114 | 25,535 | |
Advances to subsidiaries: | |||
Bank and BHC | 27,667 | 30,954 | |
Non-bank | 104,345 | 97,405 | |
Equity investments in subsidiaries: | |||
Bank and BHC | 36,093 | 42,848 | |
Non-bank | 43,667 | 32,418 | |
Other assets | 244 | 1,244 | |
Total assets | 273,140 | 270,513 | |
Liabilities | |||
Trading liabilities at fair value | 1,130 | 276 | |
Securities sold under agreements to repurchase with affiliates | 4,631 | 0 | |
Payables to and advances from subsidiaries | 35,470 | 30,861 | |
Other liabilities and accrued expenses | 2,153 | 2,548 | |
Borrowings | 148,207 | 156,582 | |
Total liabilities | 191,591 | 190,267 | |
Equity | |||
Preferred stock | 8,520 | 8,520 | |
Common stock | 20 | 20 | |
Additional paid-in capital | 23,935 | 23,794 | |
Retained earnings | 70,589 | 64,175 | |
Employee stock trusts | 2,918 | 2,836 | |
Accumulated other comprehensive income (loss) | (2,788) | (2,292) | |
Common stock held in treasury at cost | 18,727 | 13,971 | |
Common stock issued to employee stock trusts | 2,918 | 2,836 | |
Total shareholders’ equity | 81,549 | 80,246 | |
Total liabilities and equity | 273,140 | 270,513 | |
Statement of Financial Position Parenthetical Disclosures [Abstract] | |||
Investment securities at fair value | 19,824 | 15,500 | |
Investment securities pledged to various parties | 4,606 | 0 | |
Borrowings at fair value | $ 20,461 | $ 18,599 | |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Common stock authorized (shares) | 3,500,000,000 | 3,500,000,000 | |
Common stock issued (shares) | 2,038,893,979 | 2,038,893,979 | |
Common stock outstanding (shares) | 1,593,973,680 | 1,699,828,943 | |
Common stock held in treasury (shares) | 444,920,299 | 339,065,036 |
Parent Company - Condensed Cash
Parent Company - Condensed Cash Flow Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statement | |||
Net cash provided by (used for) operating activities | $ 40,773 | $ 7,305 | $ (4,505) |
Cash flows from investing activities | |||
Payments for purchases of investment securities | (42,586) | (27,800) | (23,962) |
Proceeds from sales of investment securities | 17,151 | 3,208 | 18,131 |
Proceeds from paydowns and maturities of investment securities | 12,012 | 12,668 | 7,445 |
Net cash provided by (used for) investing activities | (33,561) | (22,881) | (12,391) |
Cash flows from financing activities | |||
Issuance of preferred stock, net of issuance costs | 497 | 0 | 994 |
Issuance of Borrowings | 30,605 | 40,059 | 55,416 |
Payments for borrowings | (40,548) | (34,781) | (35,825) |
Payments for repurchases of common stock and employee tax withholdings | (5,954) | (5,566) | (4,292) |
Payments for cash dividends | (2,627) | (2,375) | (2,085) |
Other financing activities | (147) | (290) | 53 |
Net cash provided by (used for) financing activities | (11,966) | 24,205 | 16,261 |
Effect of exchange rate changes on cash and cash equivalents | (271) | (1,828) | 3,670 |
Net increase (decrease) in cash and cash equivalents | (5,025) | 6,801 | 3,035 |
Cash and cash equivalents, at beginning of period | 87,196 | 80,395 | 77,360 |
Cash and cash equivalents, at end of period | 82,171 | 87,196 | 80,395 |
Cash and cash equivalents: | |||
Cash and due from banks | 4,293 | 30,541 | 24,816 |
Restricted cash | 32,512 | 35,356 | 34,231 |
Supplemental Disclosure of Cash Flow Information | |||
Cash payments for interest | 12,511 | 9,977 | 5,377 |
Cash payments for income taxes, net of refunds | 1,908 | 1,377 | 1,390 |
Settlements received from subsidiaries | 1,600 | 1,600 | 1,500 |
Parent Company | |||
Condensed Financial Statement | |||
Net cash provided by (used for) operating activities | 24,175 | (1,136) | 3,747 |
Cash flows from investing activities | |||
Payments for purchases of investment securities | (22,408) | (8,155) | (5,263) |
Proceeds from sales of investment securities | 4,671 | 1,252 | 3,620 |
Proceeds from paydowns and maturities of investment securities | 3,157 | 3,729 | 1,038 |
Securities purchased under agreements to resell with affiliates | 15,422 | 13,057 | 19,314 |
Securities sold under agreements to repurchase with affiliates | 4,631 | (8,753) | 8,753 |
Advances to and investments in subsidiaries | (9,210) | 11,841 | (35,686) |
Net cash provided by (used for) investing activities | (3,737) | 12,971 | (8,224) |
Cash flows from financing activities | |||
Issuance of preferred stock, net of issuance costs | 497 | 0 | 994 |
Issuance of Borrowings | 8,337 | 14,918 | 36,833 |
Payments for borrowings | (24,282) | (21,418) | (24,668) |
Payments for repurchases of common stock and employee tax withholdings | (5,954) | (5,566) | (4,292) |
Payments for cash dividends | (2,627) | (2,375) | (2,085) |
Net change in advances from subsidiaries | 4,378 | 2,122 | 1,861 |
Other financing activities | 12 | 0 | 26 |
Net cash provided by (used for) financing activities | (19,639) | (12,319) | 8,669 |
Effect of exchange rate changes on cash and cash equivalents | (271) | (166) | 221 |
Net increase (decrease) in cash and cash equivalents | 528 | (650) | 4,413 |
Cash and cash equivalents, at beginning of period | 7,482 | 8,132 | 3,719 |
Cash and cash equivalents, at end of period | 8,010 | 7,482 | 8,132 |
Cash and cash equivalents: | |||
Cash and due from banks | 9 | 6 | 11 |
Deposits with bank subsidiaries | 8,001 | 7,476 | 8,120 |
Restricted cash | 0 | 0 | 1 |
Supplemental Disclosure of Cash Flow Information | |||
Cash payments for interest | 4,677 | 4,798 | 3,570 |
Cash payments for income taxes, net of refunds | $ 1,186 | $ 437 | $ 201 |
Parent Company - Narrative (Det
Parent Company - Narrative (Details) $ in Millions | Nov. 18, 2019USD ($) |
Series L | |
Class of Stock | |
Preferred stock issued | $ 500 |
Parent Company - Parent Company
Parent Company - Parent Company's Borrowings with Original Maturities Greater than One Year (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Senior | $ 179,519 | $ 178,027 |
Subordinated | 10,541 | 10,090 |
Total | 190,060 | 188,117 |
Parent Company | ||
Debt Instrument [Line Items] | ||
Senior | 137,138 | 146,492 |
Subordinated | 10,570 | 10,090 |
Total | $ 147,708 | $ 156,582 |
Parent Company - Guarantees (De
Parent Company - Guarantees (Details) - Parent Company - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instuments and Warrants | ||
Condensed Financial Statement | ||
Aggregate balance | $ 32,996 | $ 24,286 |
Subsidiary Lease Obligations | ||
Condensed Financial Statement | ||
Aggregate balance | $ 925 | $ 1,003 |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Summary (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total non-interest revenues | $ 9,424 | $ 8,814 | $ 9,215 | $ 9,272 | $ 7,559 | $ 8,936 | $ 9,704 | $ 10,102 | $ 36,725 | $ 36,301 | $ 34,645 |
Net interest | 1,433 | 1,218 | 1,029 | 1,014 | 989 | 936 | 906 | 975 | 4,694 | 3,806 | 3,300 |
Net revenues | 10,857 | 10,032 | 10,244 | 10,286 | 8,548 | 9,872 | 10,610 | 11,077 | 41,419 | 40,107 | 37,945 |
Total non-interest expenses | 8,124 | 7,322 | 7,341 | 7,331 | 6,691 | 7,021 | 7,501 | 7,657 | 30,118 | 28,870 | 27,542 |
Income from continuing operations before income taxes | 2,733 | 2,710 | 2,903 | 2,955 | 1,857 | 2,851 | 3,109 | 3,420 | 11,301 | 11,237 | 10,403 |
Provision for income taxes | 428 | 492 | 657 | 487 | 300 | 696 | 640 | 714 | 2,064 | 2,350 | 4,168 |
Income from continuing operations | 2,305 | 2,218 | 2,246 | 2,468 | 1,557 | 2,155 | 2,469 | 2,706 | 9,237 | 8,887 | 6,235 |
Income (loss) from discontinued operations | 1 | (1) | (2) | (2) | 0 | (4) | (19) | ||||
Net income | 2,305 | 2,218 | 2,246 | 2,468 | 1,558 | 2,154 | 2,467 | 2,704 | 9,237 | 8,883 | 6,216 |
Net income applicable to noncontrolling interests | 66 | 45 | 45 | 39 | 27 | 42 | 30 | 36 | 195 | 135 | 105 |
Net income applicable to Morgan Stanley | 2,239 | 2,173 | 2,201 | 2,429 | 1,531 | 2,112 | 2,437 | 2,668 | 9,042 | 8,748 | 6,111 |
Preferred stock dividends and other | 154 | 113 | 170 | 93 | 170 | 93 | 170 | 93 | 530 | 526 | 523 |
Earnings applicable to Morgan Stanley common shareholders | $ 2,085 | $ 2,060 | $ 2,031 | $ 2,336 | $ 1,361 | $ 2,019 | $ 2,267 | $ 2,575 | $ 8,512 | $ 8,222 | $ 5,588 |
Earnings (loss) per basic common share: | |||||||||||
Income from continuing operations (USD per share) | $ 1.33 | $ 1.28 | $ 1.24 | $ 1.41 | $ 0.81 | $ 1.19 | $ 1.32 | $ 1.48 | $ 5.26 | $ 4.81 | $ 3.15 |
Income (loss) from discontinued operations (USD per share) | 0 | 0 | 0 | 0 | 0 | 0 | (0.01) | ||||
Earnings per basic common share (USD per share) | 1.33 | 1.28 | 1.24 | 1.41 | 0.81 | 1.19 | 1.32 | 1.48 | 5.26 | 4.81 | 3.14 |
Earnings (loss) per diluted common share: | |||||||||||
Income from continuing operations (USD per share) | 1.30 | 1.27 | 1.23 | 1.39 | 0.80 | 1.17 | 1.30 | 1.46 | 5.19 | 4.73 | 3.08 |
Income (loss) from discontinued operations (USD per share) | 0 | 0 | 0 | (0.01) | 0 | 0 | (0.01) | ||||
Earnings per diluted common share (USD per share) | 1.30 | 1.27 | 1.23 | 1.39 | 0.80 | 1.17 | 1.30 | 1.45 | 5.19 | 4.73 | 3.07 |
Dividends declared per common share (USD per share) | 0.35 | 0.35 | 0.30 | 0.30 | 0.30 | 0.30 | 0.25 | 0.25 | $ 1.30 | $ 1.10 | $ 0.90 |
Book value per common share (USD per share) | $ 45.82 | $ 45.49 | $ 44.13 | $ 42.83 | $ 42.20 | $ 40.67 | $ 40.34 | $ 39.19 | |||
Segment Reporting Information | |||||||||||
Net discrete tax benefits related to remeasurement of reserves and related interest | $ 158 | $ 111 | |||||||||
Severance-related costs | 172 | ||||||||||
Investment Management | |||||||||||
Quarterly Financial Data [Abstract] | |||||||||||
Provision for income taxes | $ (25) | $ (32) | $ 78 | ||||||||
Segment Reporting Information | |||||||||||
Net discrete tax benefits related to remeasurement of reserves and related interest | 0 | ||||||||||
Impairment of equity method investment | 41 | 46 | 53 | ||||||||
Severance-related costs | 11 | ||||||||||
Institutional Securities | |||||||||||
Quarterly Financial Data [Abstract] | |||||||||||
Provision for income taxes | (400) | (286) | 378 | ||||||||
Segment Reporting Information | |||||||||||
Net discrete tax benefits related to remeasurement of reserves and related interest | 168 | ||||||||||
Severance-related costs | 124 | ||||||||||
Wealth Management | |||||||||||
Quarterly Financial Data [Abstract] | |||||||||||
Provision for income taxes | $ (50) | $ (50) | 357 | ||||||||
Segment Reporting Information | |||||||||||
Net discrete tax benefits related to remeasurement of reserves and related interest | $ 0 | ||||||||||
Severance-related costs | $ 37 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - Subsequent Event - E-TRADE $ in Billions | Feb. 20, 2020USD ($)shares |
Subsequent Event [Line Items] | |
Consideration transferred in acquisition | $ | $ 13 |
Common Stock | |
Subsequent Event [Line Items] | |
Stock issued per acquiree share (shares) | shares | 1.0432 |