Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MS | ||
Entity Registrant Name | MORGAN STANLEY | ||
Entity Central Index Key | 895,421 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 47,247,843,093 | ||
Entity Common Stock, Shares Outstanding | 1,866,164,899 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||
Investment banking | $ 4,933 | $ 5,594 | $ 5,948 |
Trading | 10,209 | 10,114 | 9,377 |
Investments | 160 | 541 | 836 |
Commissions and fees | 4,109 | 4,554 | 4,713 |
Asset management, distribution and administration fees | 10,697 | 10,766 | 10,570 |
Other | 825 | 493 | 1,096 |
Total non-interest revenues | 30,933 | 32,062 | 32,540 |
Interest income | 7,016 | 5,835 | 5,413 |
Interest expense | 3,318 | 2,742 | 3,678 |
Net interest | 3,698 | 3,093 | 1,735 |
Net revenues | 34,631 | 35,155 | 34,275 |
Non-interest expenses | |||
Compensation and benefits | 15,878 | 16,016 | 17,824 |
Occupancy and equipment | 1,308 | 1,382 | 1,433 |
Brokerage, clearing and exchange fees | 1,920 | 1,892 | 1,806 |
Information processing and communications | 1,787 | 1,767 | 1,635 |
Marketing and business development | 587 | 681 | 658 |
Professional services | 2,128 | 2,298 | 2,117 |
Other | 2,175 | 2,624 | 5,211 |
Total non-interest expenses | 25,783 | 26,660 | 30,684 |
Income from continuing operations before income taxes | 8,848 | 8,495 | 3,591 |
Provision for (benefit from) income taxes | 2,726 | 2,200 | (90) |
Income from continuing operations | 6,122 | 6,295 | 3,681 |
Discontinued operations: | |||
Income (loss) from discontinued operations, net of income taxes | 1 | (16) | (14) |
Net income | 6,123 | 6,279 | 3,667 |
Net income applicable to noncontrolling interests | 144 | 152 | 200 |
Net income applicable to Morgan Stanley | 5,979 | 6,127 | 3,467 |
Preferred stock dividends and other | 471 | 456 | 315 |
Earnings applicable to Morgan Stanley common shareholders | $ 5,508 | $ 5,671 | $ 3,152 |
Earnings per basic common share | |||
Income from continuing operations | $ 2.98 | $ 2.98 | $ 1.65 |
Income (loss) from discontinued operations | 0 | (0.01) | (0.01) |
Earnings per basic common share | 2.98 | 2.97 | 1.64 |
Earnings per diluted common share | |||
Income from continuing operations | 2.92 | 2.91 | 1.61 |
Income (loss) from discontinued operations | 0 | (0.01) | (0.01) |
Earnings per diluted common share | 2.92 | 2.9 | 1.6 |
Dividends declared per common share | $ 0.7 | $ 0.55 | $ 0.35 |
Average common shares outstanding | |||
Basic | 1,849 | 1,909 | 1,924 |
Diluted | 1,887 | 1,953 | 1,971 |
Consolidated Comprehensive Inco
Consolidated Comprehensive Income Statements - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Comprehensive Income Statements | |||
Net income | $ 6,123 | $ 6,279 | $ 3,667 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (11) | (304) | (491) |
Change in net unrealized gains (losses) on available for sale securities | (269) | (246) | 209 |
Pension, postretirement and other | (100) | 138 | 33 |
Change in net debt valuation adjustment | (296) | 0 | 0 |
Total other comprehensive income (loss) | (676) | (412) | (249) |
Comprehensive income | 5,447 | 5,867 | 3,418 |
Net income applicable to noncontrolling interests | 144 | 152 | 200 |
Other comprehensive income (loss) applicable to noncontrolling interests | (1) | (4) | (94) |
Comprehensive income applicable to Morgan Stanley | $ 5,304 | $ 5,719 | $ 3,312 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 22,017 | $ 19,827 |
Interest bearing deposits with banks | 21,364 | 34,256 |
Trading assets, at fair value ($152,548 and $127,627 were pledged to various parties) | 262,154 | 239,505 |
Investment securities (includes $63,170 and $66,759 at fair value) | 80,092 | 71,983 |
Securities purchased under agreements to resell (includes $302 and $806 at fair value) | 101,955 | 87,657 |
Securities borrowed | 125,236 | 142,416 |
Customer and other receivables | 46,460 | 45,407 |
Loans | ||
Held for investment (net of allowance of $274 and $225) | 81,704 | 72,559 |
Held for sale | 12,544 | 13,200 |
Goodwill | 6,577 | 6,584 |
Intangible assets (net of accumulated amortization of $2,421 and $2,130) | 2,721 | 2,984 |
Other assets | 52,125 | 51,087 |
Total assets | 814,949 | 787,465 |
Liabilities | ||
Deposits (includes $63 and $125 at fair value) | 155,863 | 156,034 |
Short-term borrowings (includes $406 and $1,648 at fair value) | 941 | 2,173 |
Trading liabilities, at fair value | 128,194 | 128,455 |
Securities sold under agreements to repurchase (includes $729 and $683 at fair value) | 54,628 | 36,692 |
Securities loaned | 15,844 | 19,358 |
Other secured financings (includes $5,041 and $2,854 at fair value) | 11,118 | 9,464 |
Customer and other payables | 190,513 | 186,626 |
Other liabilities and accrued expenses | 15,896 | 18,711 |
Long-term borrowings (includes $38,736 and $33,045 at fair value) | 164,775 | 153,768 |
Total liabilities | 737,772 | 711,281 |
Commitments and contingent liabilities | ||
Morgan Stanley shareholders' equity: | ||
Preferred stock | 7,520 | 7,520 |
Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,852,481,601 and 1,920,024,027 | 20 | 20 |
Additional paid-in capital | 23,271 | 24,153 |
Retained earnings | 53,679 | 49,204 |
Employee stock trusts | 2,851 | 2,409 |
Accumulated other comprehensive income (loss) | (2,643) | (1,656) |
Common stock held in treasury, at cost, $0.01 par value (186,412,378 and 118,869,952 shares) | (5,797) | (4,059) |
Common stock issued to employee stock trusts | (2,851) | (2,409) |
Total Morgan Stanley shareholders' equity | 76,050 | 75,182 |
Noncontrolling interests | 1,127 | 1,002 |
Total equity | 77,177 | 76,184 |
Total liabilities and equity | $ 814,949 | $ 787,465 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets | ||
Trading assets pledged to various parties | $ 152,548 | $ 127,627 |
Investment securities - AFS securities | 63,170 | 66,759 |
Securities purchased under agreement to resell, fair value | 302 | 806 |
Allowances, loans | 274 | 225 |
Intangible assets, accumulated amortization | 2,421 | 2,130 |
Deposits, fair value | 63 | 125 |
Short-term borrowings, fair value | 406 | 1,648 |
Securities sold under agreement to repurchase, fair value | 729 | 683 |
Other secured financings, fair value | 5,041 | 2,854 |
Long-term borrowings, fair value | $ 38,736 | $ 33,045 |
Common stock par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 3,500,000,000 | 3,500,000,000 |
Common stock, shares issued | 2,038,893,979 | 2,038,893,979 |
Common stock, shares outstanding | 1,852,481,601 | 1,920,024,027 |
Common stock held in treasury, shares | 186,412,378 | 118,869,952 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Total Equity - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Employee Stock Trusts | Accumulated Other Comprehensive Income (Loss) | Common Stock Held in Treasury at Cost | Common Stock Issued to Employee Stock Trusts | Non-controlling Interests | |
Balance at at Dec. 31, 2013 | $ 69,030 | $ 3,220 | $ 20 | $ 24,570 | $ 42,172 | $ 1,718 | $ (1,093) | $ (2,968) | $ (1,718) | $ 3,109 | |
Net income applicable to Morgan Stanley | 3,467 | 0 | 0 | 0 | 3,467 | 0 | 0 | 0 | 0 | 0 | |
Net income applicable to noncontrolling interests | 200 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 200 | |
Dividends | (1,014) | 0 | 0 | 0 | (1,014) | 0 | 0 | 0 | 0 | 0 | |
Shares issued under employee plans and related tax effects | 1,366 | 0 | 0 | (294) | 0 | 409 | 0 | 1,660 | (409) | 0 | |
Repurchases of common stock and employee tax withholdings | (1,458) | 0 | 0 | 0 | 0 | 0 | 0 | (1,458) | 0 | 0 | |
Net change in Accumulated other comprehensive income (loss) | (249) | 0 | 0 | 0 | 0 | 0 | (155) | 0 | 0 | (94) | |
Issuance of preferred stock | 2,782 | 2,800 | 0 | (18) | 0 | 0 | 0 | 0 | 0 | 0 | |
Deconsolidation of certain legal entities associated with a real estate fund | (1,606) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,606) | |
Other net increases (decreases) | (414) | 0 | 0 | (9) | 0 | 0 | 0 | 0 | 0 | (405) | |
Balance at at Dec. 31, 2014 | 72,104 | 6,020 | 20 | 24,249 | 44,625 | 2,127 | (1,248) | (2,766) | (2,127) | 1,204 | |
Net income applicable to Morgan Stanley | 6,127 | 0 | 0 | 0 | 6,127 | 0 | 0 | 0 | 0 | 0 | |
Net income applicable to noncontrolling interests | 152 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 152 | |
Dividends | (1,548) | 0 | 0 | 0 | (1,548) | 0 | 0 | 0 | 0 | 0 | |
Shares issued under employee plans and related tax effects | 1,401 | 0 | 0 | (79) | 0 | 282 | 0 | 1,480 | (282) | 0 | |
Repurchases of common stock and employee tax withholdings | (2,773) | 0 | 0 | 0 | 0 | 0 | 0 | (2,773) | 0 | 0 | |
Net change in Accumulated other comprehensive income (loss) | (412) | 0 | 0 | 0 | 0 | 0 | (408) | 0 | 0 | (4) | |
Issuance of preferred stock | 1,493 | 1,500 | 0 | (7) | 0 | 0 | 0 | 0 | 0 | 0 | |
Deconsolidation of certain legal entities associated with a real estate fund | (191) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (191) | |
Other net increases (decreases) | (169) | 0 | 0 | (10) | 0 | 0 | 0 | 0 | 0 | (159) | |
Balance at at Dec. 31, 2015 | 76,184 | 7,520 | 20 | 24,153 | 49,204 | 2,409 | (1,656) | (4,059) | (2,409) | 1,002 | |
Cumulative adjustment for accounting change related to DVA | [1] | 0 | 0 | 0 | 0 | 312 | 0 | (312) | 0 | 0 | 0 |
Net adjustment for accounting change related to consolidation | [2] | 106 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 106 |
Net income applicable to Morgan Stanley | 5,979 | 0 | 0 | 0 | 5,979 | 0 | 0 | 0 | 0 | 0 | |
Net income applicable to noncontrolling interests | 144 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 144 | |
Dividends | (1,816) | 0 | 0 | 0 | (1,816) | 0 | 0 | 0 | 0 | 0 | |
Shares issued under employee plans and related tax effects | 1,303 | 0 | 0 | (892) | 0 | 442 | 0 | 2,195 | (442) | 0 | |
Repurchases of common stock and employee tax withholdings | (3,933) | 0 | 0 | 0 | 0 | 0 | 0 | (3,933) | 0 | 0 | |
Net change in Accumulated other comprehensive income (loss) | (676) | 0 | 0 | 0 | 0 | 0 | (675) | 0 | 0 | (1) | |
Other net increases (decreases) | (114) | 0 | 0 | 10 | 0 | 0 | 0 | 0 | 0 | (124) | |
Balance at at Dec. 31, 2016 | $ 77,177 | $ 7,520 | $ 20 | $ 23,271 | $ 53,679 | $ 2,851 | $ (2,643) | $ (5,797) | $ (2,851) | $ 1,127 | |
[1] | Debt valuation adjustment (“DVA”) represent s the change in the fair value resulting from fluctuations in the Firm’s credit spreads and other credit factors related to liabilities carried at fair value under the fair value option , primarily related to certain Long-term and Short-term borrowings. In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , a cumulative catch - up adjustment wa s recorded as of January 1, 2016 to move the cumulative unrealized DVA amount, net of noncontrolling interest and tax, related to outstanding liabilities under the fair value option election from Retained earnings into Accumulated other comprehensive incom e (loss) (“AOCI”). See Notes 2 and 15 for further information. | ||||||||||
[2] | In accordance with the accounting update Amendments to the Consolidation Analysis , a net adjustment was recorded as of January 1, 2016 to both consolidate and deconsolidate certain e ntities under the new guidance. See Note 2 for f urther information. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Cash flows from operating activities | |||
Net income | $ 6,123 | $ 6,279 | $ 3,667 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Deferred income taxes | 1,579 | 1,189 | (231) |
(Income) loss from equity method investments | 79 | (114) | (156) |
Compensation payable in common stock and options | 1,136 | 1,104 | 1,260 |
Depreciation and amortization | 1,736 | 1,433 | 1,161 |
Net gain on sale of available for sale securities | (112) | (84) | (40) |
Impairment charges | 130 | 69 | 111 |
Provision for credit losses on lending activities | 144 | 123 | 23 |
Other operating activities | (199) | 322 | (72) |
Changes in assets and liabilities: | |||
Trading assets, net of Trading liabilities | (24,395) | 29,471 | 20,619 |
Securities borrowed | 17,180 | (5,708) | (7,001) |
Securities loaned | (3,514) | (5,861) | (7,580) |
Customer and other receivables and other assets | (2,881) | 8,704 | 2,204 |
Customer and other payables and other liabilities | 1,803 | 4,373 | 27,971 |
Securities purchased under agreements to resell | (14,298) | (4,369) | 34,842 |
Securities sold under agreements to repurchase | 17,936 | (33,257) | (75,692) |
Net cash provided by (used for) operating activities | 2,447 | 3,674 | 1,086 |
Proceeds from (payments for): | |||
Other assets - Premises, equipment and software, net | (1,276) | (1,373) | (992) |
Business dispositions, net of cash disposed | 0 | 998 | 989 |
Changes in loans, net | (9,604) | (15,816) | (20,116) |
Investment securities: | |||
Purchases | (50,911) | (47,291) | (32,623) |
Proceeds from sales | 33,716 | 37,926 | 12,980 |
Proceeds from paydowns and maturities | 8,367 | 5,663 | 4,651 |
Other investing activities | 200 | (102) | (213) |
Net cash used for investing activities | (19,508) | (19,995) | (35,324) |
Net proceeds from (payments for): | |||
Short-term borrowings | (1,206) | (88) | 119 |
Noncontrolling interests | (96) | (96) | (189) |
Other secured financings | 1,333 | (2,370) | (2,189) |
Deposits | (171) | 22,490 | 21,165 |
Proceeds from: | |||
Excess tax benefits associated with stock-based awards | 61 | 211 | 101 |
Derivatives financing activities | 0 | 512 | 855 |
Issuance of preferred stock, net of issuance costs | 0 | 1,493 | 2,782 |
Issuance of long-term borrowings | 43,626 | 34,182 | 36,740 |
Payments for: | |||
Long-term borrowings | (30,390) | (27,289) | (33,103) |
Derivatives financing activities | (120) | (452) | (776) |
Repurchases of common stock and employee tax withholdings | (3,933) | (2,773) | (1,458) |
Cash dividends | (1,746) | (1,455) | (904) |
Other financing activities | 66 | 0 | 0 |
Net cash provided by (used for) financing activities | 7,424 | 24,365 | 23,143 |
Effect of exchange rate changes on cash and cash equivalents | (1,065) | (945) | (1,804) |
Net increase (decrease) in cash and cash equivalents | (10,702) | 7,099 | (12,899) |
Cash and cash equivalents, at beginning of period | 54,083 | 46,984 | 59,883 |
Cash and cash equivalents, at end of period | 43,381 | 54,083 | 46,984 |
Cash and cash equivalents include: | |||
Cash and due from banks | 22,017 | 19,827 | 21,381 |
Interest bearing deposits with banks | 21,364 | 34,256 | 25,603 |
Cash and cash equivalents, at end of period | 43,381 | 54,083 | 46,984 |
Supplemental Disclosure of Cash Flow Information | |||
Cash payments for interest | 2,834 | 2,672 | 3,575 |
Cash payments for income taxes, net of refunds | $ 831 | $ 677 | $ 886 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Introduction and Basis of Presentation | |
Introduction And Basis Of Presentation | 1 . Introduction and Basis of Presentation The Firm Morgan Stanley, a financial holding company, is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. A description of the clients and principal products and services of each of the Firm ’s business segments is as follo ws: Institutional Securities provides investment banking, sales and trading, lending and other services to corporations, governments, financial institutions, and high to ultra-high net worth clients. Investment banking services consist of capital raising and financial advisory services, including services relating to the underwriting of debt, equity and other securities, as well as advice on mergers and acquisitions, restructurings, real estate and project finance. Sales and trading services include sales , financing and market-making activities in equity and fixed income products, including foreign exchange and commodities, as well as prime brokerage services. Lending services include originating and/or purchasing corporate loans, commercial and residentia l mortgage lending, asset-backed lending, financing extended to equities and commodities customers, and loans to municipalities. Other activities include 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, annuity and insurance products, credit and other lending products, banking and retirement plan services. Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary chann els. Strategies and products include equity, fixed income, liquidity and alternative/other products. Institutional clients include defined benefit/defined contribution plans , foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are serviced through intermediaries, including affiliated and non-affiliated distributors. Basis o f Financial Information The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) , which require the Firm to make estimates and assumptions regarding th e valuations of certain financial instruments, the valuation of goodwill and intangible assets, compensation, deferred tax assets, the outcome of legal and tax matters, allowance for credit losses and other matters that affect its consolidated financial st atements and related disclosures. The Firm believes that the estimates utilized in the preparation of its consolidated financial statements are prudent and reasonable. Actual results could differ materially from these estimates. Intercompany balances and t ransactions have been eliminated. Certain reclassifications have been made to prior periods to conform to the current presentation. Consolidation The consolidated financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain variable interest entities (“VIE”) (see Note 13). For consolidated subsidiaries that are less than wholly owned, the third-party holdings of equity interests ar e referred to as noncontrolling interests. The net income attributable to noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the consolidated income statements. The portion of sharehol ders’ equity that is attributable to noncontrolling interests for such subsidiaries is presented as noncontrolling interests, a component of total equity, in the consolidated balance sheets. For entities where (1) the total equity investment at risk is s ufficient to enable the entity to finance its activities without additional subordinated financial support and (2) 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 these criteria), the Firm consolidates those entities where it has the power to make the decisions that most signif icantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receiv e benefits that could potentially be significant to the VIE, except for certain VIEs that are money market funds, investment companies or entities qualifying for accounting purposes as investment companies. Generally, the Firm consolidates those entities w hen it absorbs a majority of the expected losses or a majority of the expected residual returns, or both, of the entities. For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over op erating and financial decisions, it generally applies the equity method of accounting with net gains and losses recorded within Other revenues (see Note 8 ). Where the Firm has elected to measure certain eligible investments at fair value in accordance w ith the fair value option, net gains and losses are recorded within Investments revenues (see Note 3 ). Equity and partnership interests held by entities qualifying for accounting purposes as investment companies are carried at 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 LLC”), Morgan Stanley & Co. International plc (“MSIP”), Morgan Stanley MUFG Securities Co., Ltd. (“MSMS”), Morg an Stanley Bank, N.A. (“MSBNA”) and Morgan Stanley Private Bank, National Association (“MSPBNA”). Consolidated Cash Flow Statement s Presentation For purposes of the consolidated cash flow statements, cash and cash equivalents consist of Cash and due from banks and Interest bearing deposits with banks, which include 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. The adoption of the accounting update, Amendments to the Consolidation Analysis (see Note 2 ) on January 1, 2016 resulted in a net noncash increase in total assets of $ 126 million. The Firm deconsolidated approximately $ 244 million and $ 1.6 billion in 2015 and 2014, respectively, in net assets previously attributable to noncontrolling interests that were primarily related to or associated with real estate funds sponsored by the Firm. The deconsolidations resulted in a noncash reduction of assets of $ 222 million in 2015 and $ 1.3 billion in 2014. Dispositions The Firm completed the sale of its global oil merchanting unit of the commodities division to Castleton Commodities International LLC on November 1, 2015. Th e Firm recognized an impairment charge of approximately $ 71 million in Other revenues. The transaction did not meet the criteria for discontinued operations and did not have a material impact on the Firm’s financial results. On July 1, 2014, the Firm completed the sale of its ownership stake in T ransMontaigne Inc., a U.S.-based oil storage, marketing and transportation company, as well as related physical inventory and the assumption of its obligations under certain terminal storage contracts, to NGL Energy Partners LP. The gain on sale of $ 112 mi llion is recorded in Other revenues. On March 27, 2014, the Firm completed the sale of Canterm Canadian Terminals Inc., a public storage terminal operator for refined products with two distribution terminals in Canada. The gain on sale was approximately $ 4 5 million and is recorded in Other revenues. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies Revenue Recognition Investment Banking Underwriting revenues and advisory fees from mergers, acquisitions and restructuring transactions are recorded when services for the transactions are determined to be substantially completed, generally as set forth under the terms of the engagement. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same period as the related investment banking transaction revenues. Underwriting revenues are presented net of related expenses. Non-reimbursed expenses associated with advisory transactions are recorded within Non-interest expenses. Commissions and Fees Comm ission and fee revenues are recognized on trade date. Commission and fee revenues primarily arise from agency transactions in listed and over-the-counter (“OTC”) equity securities; services related to sales and trading activities; and sales of mutual funds , futures, insurance products and options. Asset Management, Distribution and Administration Fees Asset management, distribution and administration fees are recognized over the relevant contract period. Sales commissions paid by the 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. The Firm periodically tests deferred commission assets for recoverability based on cash flows expected to be receive d in future periods. In certain management fee arrangements, the Firm is entitled to receive performance-based fees (which also may be referred to as incentive fees and which include carried interest) when the return on assets under management exceeds certain benchmark returns or other performance targets. In such arrangements, performance fee revenues are accrued (or reversed) quarterly based on measuring account or fund performance to date versus the performance benchmark stated in the investment mana gement agreement. Performance-based fees are recorded within Investments or Asset management, distribution and administration fees depending on the nature of the arrangement. The Firm’s portion of the unrealized cumulative amount of performance-based fee revenues (for which the Firm is not obligated to pay compensation) at risk of reversing if fund performance falls below stated investment management agreement benchmarks was approximately $ 397 million and $ 422 million at December 31, 2016 and December 31, 2015, respectively. See Note 12 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received. Fair Value of Financial Instruments Instruments within Trading assets and Trading liabilities are measured at fair value, either in accordance with accounting guidance or through the fair value option election (discussed below). These financial instruments primarily represent the Firm’s trading and investment position s and include both cash and derivative products. In addition, debt securities classified as available-for-sale (“AFS”) securities are measured at fair value. Gains and losses on instruments carried at fair value are reflected in Trading revenues , Invest ments revenues or Investment banking revenues in the consolidated income statements, except for AFS securities (see “ Investment Securities —Available for Sale and Held to Maturity ” section herein and Note 5) and derivatives accounted for as hedges (see “Hedge Accounting” section herein and Note 4). Interest income and interest expense are recorded within the consolidated income statements depending on the nature of the instrument and related market conventions. When interest is included as a comp onent 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 depend ing on the business activity. The fair value of OTC financial instruments, including derivative contracts related to financial instruments and commodities, is presented in the accompanying consolidated 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 Va lue Option The fair value option permits the irrevocable fair value option election at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. The Firm applies the fair value opti on for eligible instruments, including certain Securities purchased under agreements to resell, loans and lending commitments, equity method investments, Deposits (struct ured certificate of deposits), S hort-term borrowings ( primarily structured notes), Sec urities sold under agreements to repurchase, Other secured financings and Long-term borrowings (primarily structured notes). Fair Value Measurement—Definition and Hierarchy Fair value is defined as the price that would be received to sell an asset o r paid to transfer a liability ( i.e. , the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Firm uses various valuation approaches and establishes a hierarchy for inputs used in m easuring fair value that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable 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 lia bility that are developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: Level 1. Valuations based on quoted prices in active markets that the Firm has the ability to access for identical assets or liabilities. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in a n 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, eithe r 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, for example, the type of product, whether the product is new and not yet established in the marketplace, the liquidity of markets and other characteristics particular to the product. To the extent that valuation is based on models or in puts 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 t he 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 i nstruments. 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 (see Note 3). In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measur ement in its entirety. For assets and liabilities that are transfe rred between l evels in the fair value hierarchy during the period, fair values are ascribed as if the assets or liabilities had been transferred as of the beginning of the period. Valuat ion Technique s 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 meet 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 ap plicable, 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. Adjustments for liquidity risk adjust model-derived mid-market levels of Level 2 and Level 3 financial instruments for t he 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 short-term and long-term borrowings (primarily structured notes) for which the fair va lue 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 short-term and long-term 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 app lies market-based default probabilities to the future exposure, leveraging external third-party credit default swap (“CDS”) spread data. Where CDS spread data are unavailable for a specific counterparty, bond market spreads, CDS spread data based on the co unterparty’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 adjustment s are derived by making assessments of the possible degree of variability using statistical approaches and market-based information where possible. The Firm may apply a concentration adjustment to certain of its OTC derivatives portfolios to reflect the additional cost of closing out a particularly large risk exposure. Where possible, these adjustments are based on observable market information, but in many instances, significant judgment is required to estimate the costs of closing out concentrated risk exposures due to the lack of liquidity in the marketplace. T he Firm applies funding valuation adjustments (“ FVA ”) into the fair value measurements of OTC uncollateralized or parti ally collateralized derivatives and in collateralized derivatives where the terms of the agreement do not permit the reuse of the collateral received. The Firm ’s implementation of FVA reflects the inclusion of FVA in the pricing and valuations by the majority of mark et participants involved in its principal exit market for these instruments. In general, FVA reflects a market funding risk premium inherent in the noted derivative instruments. The methodology for measuring FVA leverages the Firm ’s existing credit-related valuation adjustment calculation methodologies, which apply to both assets and liabilities. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, assumptions are set to ref lect 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 and financial liabilities 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. See Note 3 for a description of valuation techniques applied t o the major categories of financial instruments measured at fair value. Assets and Liabilities Measured at Fai r 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 no n-recurring basis, fair value is determined by using various valuation approaches. The same hierarchy for inputs as described above, which maximizes the use of observable inputs and minimizes the use of unobservable inputs by generally requiring that the o bservable inputs be used when available, is used in measuring fair value for these items. Valuation Process The Valuation Review Group (“VRG”) within the Firm’s Financial Control Group (“FCG”) is responsible for the Firm’s fair value valuation policies, processes and procedures. VRG is independent of the business units and reports to the Chief Financial Officer (“CFO”), who has final authority over the valuation of the Firm’s financial instruments. VRG implements valuation control processes desi gned to validate the fair value of the Firm’s financial instruments measured at fair value, including those derived from pricing models. Model Review. VRG, in conjunction with the Model Risk Management Department (“MRM”), which reports to the Chief R isk Officer, independently review valuation models’ theoretical soundness, the appropriateness of the valuation methodology and calibration techniques developed by the business units using observable inputs. Where inputs are not observable, VRG reviews the appropriateness of the proposed valuation methodology to determine that it is consistent with how a market participant would arrive at the unobservable input. The valuation methodologies utilized in the absence of observable inputs may include extrapolati on techniques and the use of comparable observable inputs. As part of the review, VRG develops a methodology to independently verify the fair value generated by the business unit’s valuation models. The Firm generally subjects valuations and models to a re view process initially and on a periodic basis thereafter. Independent Price Verification. The business units are responsible for determining the fair value of financial instruments using approved valuation models and valuation methodologies. Generall y on a monthly basis, VRG independently validates the fair values of financial instruments determined using valuation models by determining the appropriateness of the inputs used by the business units and by testing compliance with the documented valuation methodologies approved in the model review process described above. The results of this independent price verification and any adjustments made by VRG to the fair value generated by the business units are presented to management of the Firm’s three busi ness segments ( i.e., Institutional Securities, Wealth Management and Investment Management), the CFO and the Chief Risk Officer on a regular basis. VRG uses recently executed transactions, other observable market data such as exchange data, broker-dealer quotes, third-party pricing vendors and aggregation services for validating the fair value of financial instruments generated using valuation models. VRG assesses the external sources and their valuation methodologies to determine if the external provider s meet the minimum standards expected of a third-party pricing source. Pricing data provided by approved external sources are evaluated using a number of approaches; for example, by corroborating the external sources’ prices to executed trades, by analyzin g the methodology and assumptions used by the external source to generate a price , and/or by evaluating how active the third-party pricing source (or originating sources used by the third-party pricing source) is in the market. Based on this analysis, VRG generates a ranking of the observable market data designed to ensure that the highest-ranked market data source is used to validate the business unit’s fair value of financial instruments. VRG reviews the models and valuation methodology used to price new material Level 2 and Level 3 transactions, and both FCG and MR M must approve the fair value of the trade that is initially recognized. Level 3 Transactions. VRG reviews the business unit’s valuation techniques to assess whether these are consistent w ith market participa n t assumptions. 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 righ ts and obligations under the agreement and to liquidate and set off collateral against any net amount owed by the counterparty. However, in certain circumstances, the Firm may not have such an agreement in place; the relevant insolvency regime may not su pport 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 re lated amounts are not offset in the tabular disclosures (see Note 4). 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 mast er 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 e nforceability 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 col lateralized transactions, see Notes 4 and 6 , respectively. Hedge Accounting The Firm applies hedge accounting using various derivative financial instruments for the following types of hedges: hedges of changes in fair value of assets and liabilities due to the ris k 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 Tradin g assets—Derivative and other contracts or Trading liabilities—Derivative and other contracts in the consolidated 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 primarily of interest rate swaps designated as fair value hedges of changes in the benchmark interest rate of fixed rate senior long-term borrowings. The Firm uses regression analy sis 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 val ue of the hedged item (debt liability) 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 its own credit spreads and counterparty credit spreads to determine whether they would cause the hedging relationship to be ineffective. For qualifying fair value hedges of benchmark interest rates, the changes in the fair value of the derivative and the changes in the fair value of the hedged liability provide offset of one another and, together with any resulting ineffectiveness, are recorded in Interest expense. When a derivative is de-designated as a hedge, any basis adjustment remaining on the hedged liability is amortized to Interest expense over the remaining lif e of the 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 non-U.S. dollar functional currency operations . To the extent that the notional amounts of the hedging instruments equal the portion of the investments being hedged and the underlying exchange rate of the derivative hedging instrument relates to the exchange rate between the functional currency of the investee and the Parent Company's functional currency, no hedge ineffectiveness is recognized in earnings. If these exchange rates are not the same, the Firm uses regression analysis to assess the prospective and retrospective effectiveness of the hedge r elationships, and any ineffectiveness is recognized in Interest income. The gain or loss from revaluing hedges of net investments in foreign operations at the spot rate is reported within AOCI . The forward points on the hedging instruments are excluded fro m hedge effectiveness testing and are recorded in Interest income. For further information on derivative instruments and hedging activities, see Note 4. 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-o ffs, 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 re cognized 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 estimates probable losses related to loans specifically identified for impairment in addition to the probable losses inherent in the held for investment loan portfolio. The Firm utilizes the U.S. banking regulators’ definition of criticized exposures, which consist of the special mention substandard, doubtful and loss categories as credit quality indicators. For further information on the credit indicators, see Note 7. Substandard loans are regularl y 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 dep ends 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 allowanc e component of the allowance for loan losses is used to estimate probable losses for non-homogeneous exposures that have been specifically identified for impairment analysis by the 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 as a practical expedient, the observable market price of the loan or the fair value of the collateral if the loan is collateral dependent. If the present value of the expected future cash flows (or alternatively, the observable market price of the loan or the fair value of the collateral) is less than the recorded investment in the loan, then the Firm recogn izes an allowance and a charge to the provision for loan losses within Other revenues. The inherent allowance component of the allowance for loan losses is used to estimate the probable losses inherent in the loan portfolio and includes non-homogeneou s loans that have not been identified as impaired and portfolios of smaller balance homogeneous loans. The Firm maintains methodologies by loan product for calculating an allowance for loan losses that estimates the inherent losses in the loan portfolio. G enerally, inherent losses in the portfolio for non-impaired loans are estimated using statistical analysis and judgment around the exposure at default, the probability of default and the loss given default. Qualitative and environmental factors such as eco nomic and business conditions, nature and volume of the portfoli o , and lending ter ms and volume and severity of past due loans may also be considered in the calculations. The allowance for loan losses is maintained at a level reasonable to ensure that it ca n adequately absorb the estimated probable losses inherent in the portfolio. The Firm recognizes an allowance and 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 troubled debt restructurings (“TDRs”). A loan that has been modified in a TDR is generally considered to be impaired and is evaluated for the extent of impairment using the Firm ’s specific allowance methodology. TDRs are also generally classified as nonaccrual and may only be returned to accrua l status 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 principa l 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. Loans classified as Doubtful or Loss are categorized as nonaccrual. Payments received on nonaccrual loans held for investment are applied to principal if there is doubt regarding the ultim ate collectability of principal ( i.e ., cost recovery method). If collection of the principal of nonaccrual loans held for investment is not in doubt, interest income is recognized on a cash basis. If neither principal nor interest collection is in doubt, l oans are on accrual status, and interest income is recognized using the effective interest method. Loans that are on nonaccrual status may not be restored to accrual status until all delinquent principal and/or interest has been brought current after a rea sonable 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 a s uncollectible, and is therefore deemed a confirmed loss, is charged off against the allowance for loan losses. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the sale or operation of the underlying collat eral. 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 Commitm ents. 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 disclosed above. The analysis also incorporates a credit conv ersion factor, which is the expected utilization of the undrawn commitment. The liability is recorded in Other liabilities and accrued expenses in the consolidated balance sheets , and the expense is recorded in Other non-interest expenses in the consolidated income statements. For more information regarding loan commitments, standby letters of credit and financial guarantees, see Note 12. Loans Held for Sale Loans held for sale are measured at the lower of cost or fair value, with valuati on 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 bel ow the initial carrying amount and any recoveries in fair value up to the initial carrying amount are recorded in Other revenues. However, increases in fair value above initial 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 in a contra loan account until the related loan is sold. The deferred fees or costs and discounts or pre miums are an adjustment to the basis of the loan and, therefore, are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Lending Commitments . Commitments to fund n on-mortgage loans held for sale are not derivatives. The Firm records the liability and related expense for the fair value exposure (if the fair value is below the cost) related to commitments to fund non-mortgage loans that will be held for sale in Other liabilities and accrued expenses in the consolidated balance sheets with an offset to Other r evenue s in the consolidated income statements. Commitments to fund mortgage loans held for sale are derivatives. The Firm records the derivative asset or liability exposure in Trading assets or Trading liabilities in the consolidated balance sheets with an offset to Trading revenues in the consolidated income statements. Loans and lending commitments held for sale are subject to the nonaccrual policies described a bove. 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 |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures | |
Fair Value Disclosures | 3. Fair Value s Fair Value Measurements Valuation Techniques for Assets and Liabilities Measured at Fair Value on a Recurring Basis Asset and Liability / Valuation Technique Valuation Hierarchy Classification Trading Assets and Trading Liabilities U.S. Treasury Securities • Generally Level 1 Fair value is determined using quoted market prices; valuation adjustments are not applied. U.S. Agency Securities • Level 1 - non-callable agency-issued • Non-callable agency-issued debt securities are generally valued using quoted market prices, and debt securities callable agency-issued debt securities are valued by benchmarking model-derived prices to quoted • Generally Level 2 - callable agency- market prices and trade data for comparable instruments. issued debt securities, agency • The fair value of agency mortgage pass-through pool securities is model-driven based on spreads mortgage pass-through pool securities of a comparable to-be-announced security. and collateralized mortgage obligations • Collateralized mortgage obligations are generally valued using quoted market prices and trade data • Level 3 - in instances where the adjusted by subsequent changes in related indices for comparable instruments. inputs are unobservable Other Sovereign Government Obligations • Generally Level 1 • Fair value is determined using quoted prices in active markets when available. • Level 2 - if the market is less active or prices are dispersed • Level 3 - in instances where the inputs are unobservable State and Municipal Securities • Generally Level 2 – if value based on • Fair value is determined using recently executed transactions, market price quotations or pricing observable market data for comparable models that factor in, where applicable, interest rates, bond or CDS spreads and volatility and/or instruments volatility skew, adjusted for any basis difference between cash and derivative instruments. Residential Mortgage-Backed Securities ("RMBS"), Commercial Mortgage-Backed Securities • Generally Level 2 - if value based on ("CMBS") and other Asset-Backed Securities ("ABS') observable market data for comparable • RMBS, CMBS and other ABS may be valued based on price or spread data obtained from observed instruments transactions or independent external parties such as vendors or brokers. • Level 3 - if external prices or • When position-specific external price data are not observable, the fair value determination may require significant spread inputs are benchmarking to comparable instruments, and/or analyzing expected credit losses, default and recovery unobservable or if the comparability rates, and/or applying discounted cash flow techniques. When evaluating the comparable instruments assessment involves significant for use in the valuation of each security, security collateral-specific attributes, including payment priority, subjectivity related to property type credit enhancement levels, type of collateral, delinquency rates and loss severity, are considered. In differences, cash flows, performance addition, for RMBS borrowers, Fair Isaac Corporation (“FICO”) scores and the level of documentation and other inputs for the loan are considered. • Market standard models, such as Intex, Trepp or others, may be deployed to model the specific collateral composition and cash flow structure of each transaction. Key inputs to these models are market spreads, forecasted credit losses, and default and prepayment rates for each asset category. • Valuation levels of RMBS and CMBS indices are used as an additional data point for benchmarking purposes or to price outright index positions. Corporate Bonds • Level 2 - if value based on • Fair value is determined using recently executed transactions, market price quotations, bond spreads, observable market data for comparable CDS spreads, or at the money volatility and/or volatility skew obtained from independent external parties, instruments such as vendors and brokers, adjusted for any basis difference between cash and derivative instruments. • Level 3 - in instances where prices • The spread data used are for the same maturity as the bond. If the spread data do not reference the or significant spread inputs are issuer, then data that reference a comparable issuer are used. When position-specific external price data unobservable 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 Collateralized Debt Obligations ("CDO") and Collateralized Loan Obligations ("CLO") • Level 2 - when either comparable • The Firm holds cash CDOs/CLOs that typically reference a tranche of an underlying synthetic market transactions are observable or portfolio of single name CDS spreads collateralized by corporate bonds (“credit-linked notes”) or cash credit correlation input is insignificant portfolio of asset-backed securities/loans (“asset-backed CDOs/CLOs”). • Level 3 - when either comparable • Credit correlation, a primary input used to determine the fair value of credit-linked notes, is usually market transactions are unobservable unobservable and derived using a benchmarking technique. Other model inputs such as credit spreads, or the credit correlation input is including collateral spreads, and interest rates are typically observable. significant • Asset-backed CDOs/CLOs 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/CLO position is evaluated independently taking into consideration available comparable market levels, underlying collateral performance and pricing, deal structures and liquidity. Loans and Lending Commitments • Level 2 - if value based on • Fair value of corporate loans is determined using recently executed transactions, market price observable market data for comparable quotations (where observable), implied yields from comparable debt, market observable CDS instruments spread levels obtained from independent external parties adjusted for any basis difference between • Level 3 - in instances where prices cash and derivative instruments, along with proprietary valuation models and default recovery analysis or significant spread inputs are where such transactions and quotations are unobservable. 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 its best estimates of the key assumptions, including forecasted credit losses, prepayment rates, forward yield curves and discount rates commensurate with the risks involved or a methodology that utilizes the capital structure and credit spreads of recent comparable securitization transactions. • 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 company. Corporate Equities • Level 1 - exchange-traded securities • Exchange-traded equity securities are generally valued based on quoted prices from the exchange. and fund units if actively traded To the extent these securities are actively traded, valuation adjustments are not applied. • Level 2 - exchange-traded securities • Unlisted equity securities are generally valued based on an assessment of each underlying security, if not actively traded or if undergoing a considering rounds of financing and third-party transactions, discounted cash flow analyses and market- recent mergers and acquisitions event based information, including comparable Firm transactions, trading multiples and changes in market or corporate action outlook, among other factors. • Level 3 - unlisted equity securities • Listed fund units are generally marked to the exchange-traded price, while listed fund units if not and exchange-traded securities if not actively traded and unlisted fund units are generally marked to Net Asset Value ("NAV"). actively traded or if marked to an aged mergers and acquisitions event or corporate action • Certain fund units that are measured at fair value using the NAV per share are not classified in the fair value hierarchy Listed Derivative Contracts • Level 1 - listed derivatives that • Listed derivatives that are actively traded are valued based on quoted prices from the exchange. are actively traded • Listed derivatives that are not actively traded are valued using the same approaches as those applied • Level 2 - listed derivatives that are to OTC derivatives. not actively traded Asset and Liability / Valuation Technique Valuation Hierarchy Classification OTC Derivative Contracts • Generally Level 2 - OTC derivative • OTC derivative contracts include forward, swap and option contracts related to interest rates, foreign products valued using observable currencies, credit standing of reference entities, equity prices or commodity prices. inputs, or where the unobservable • Depending on the product and the terms of the transaction, the fair value of OTC derivative products input is not deemed significant can be modeled using a series of techniques, including closed-form analytic formulas, such as the • Level 3 – OTC derivatives products Black-Scholes option-pricing model, simulation models or a combination thereof. Many pricing models for which the unobservable input is do not entail material subjectivity as the methodologies employed do not necessitate significant judgment, deemed significant 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 which 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 these inputs are unobservable, relationships to observable data points, based on historic 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. • For further information on derivative instruments and hedging activities, see Note 4. Investments • Level 1 - exchange-traded direct • Investments include direct investments in equity securities, as well as various investment management equity investments in an active market funds, which include investments made in connection with certain employee deferred compensation plans. • Level 2 - non-exchange-traded • Direct investments are presented in the fair value hierarchy table as Principal investments and Other. direct equity investments and Initially, the transaction price is generally considered by the Firm as the exit price and is its best investments in various investment estimate of fair value. management funds if valued based on • After initial recognition, in determining the fair value of non-exchange-traded internally and externally rounds of financing or third-party managed funds, the Firm generally considers the NAV of the fund provided by the fund manager transactions; exchange-traded direct to be the best estimate of fair value. For non-exchange-traded investments either held directly or held equity investments if not actively within internally managed funds, fair value after initial recognition is based on an assessment of each traded underlying investment, considering rounds of financing and third-party transactions, discounted cash • Level 3 - non-exchange-traded direct flow analyses and market-based information, including comparable Firm transactions, trading equity investments and investments in multiples and changes in market outlook, among other factors. Exchange-traded direct equity various investment management funds investments are generally valued based on quoted prices from the exchange. where rounds of financing or third- party transactions are not available • Certain investments that are measured at fair value using the NAV per share are not classified in the fair value hierarchy. For additional disclosure about such investments, see “Fair Value of Investments Measured at Net Asset Value” herein Asset and Liability / Valuation Technique Valuation Hierarchy Classification Physical Commodities • Generally Level 2 if value based on • The Firm trades various physical commodities, including natural gas and precious metals. observable inputs • Fair value is determined using observable inputs, including broker quotations and published indices. Investment Securities AFS Securities • For further information on Valuation • AFS securities are composed of U.S. government and agency securities ( e.g. , U.S. Treasury securities, Hierarchy Classification, see agency-issued debt, agency mortgage pass-through securities and collateralized mortgage obligations), corresponding Valuation Technique CMBS, Federal Family Education Loan Program (“FFELP”) student loan ABS, auto loan ABS, corporate described herein. bonds, CLOs and actively traded equity securities. • For further information on the determination of fair value, refer to the corresponding asset/liability valuation technique described herein. • For further information on AFS securities, see Note 5. Certificates of Deposit • Generally Level 2 • The Firm issues Federal Deposit Insurance Corporation ("FDIC") insured certificates of deposit that pay either fixed coupons or that have repayment terms linked to the performance of debt or equity securities, indices or currencies. The fair value of these certificates of deposit is determined using valuation models that incorporate observable inputs referencing identical or comparable securities, including prices to which the deposits are linked, interest rate yield curves, option volatility and currency rates, equity prices, 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. Short-Term Borrowings/Long-Term Borrowings Structured Notes • Generally Level 2 • The Firm issues structured notes that have coupon or repayment terms linked to the performance of • Level 3 - in instances where the debt or equity securities, indices, currencies or commodities. unobservable inputs are deemed • Fair value of structured notes is determined using valuation models for the derivative and debt portions significant of the notes. These models incorporate observable inputs referencing identical or comparable securities, including prices to which the notes are linked, interest rate yield curves, option volatility and currency rates, and commodity or equity prices. • Independent, external and traded prices for the notes are considered as well. The impact of the Firm’s own credit spreads is also included based on observed secondary bond market spreads. Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase • Fair value is computed using a standard cash flow discounting methodology. • Generally Level 2 • The inputs to the valuation include contractual cash flows and collateral funding spreads, which are • Level 3 - in instances where the estimated using various benchmarks, interest rate yield curves and option volatilities. unobservable inputs are deemed significant Assets and Liabilities Measured at Fair Value on a Recurring Basis Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting At December 31, 2016 $ in millions Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 25,457 $ — $ — $ — $ 25,457 U.S. agency securities 2,122 20,392 74 — 22,588 Total U.S. government and agency securities 27,579 20,392 74 — 48,045 Other sovereign government obligations 14,005 5,497 6 — 19,508 Corporate and other debt: State and municipal securities — 2,355 250 — 2,605 Residential mortgage-backed securities — 767 92 — 859 Commercial mortgage-backed securities — 715 123 — 838 Asset-backed securities — 209 2 — 211 Corporate bonds — 11,051 232 — 11,283 Collateralized debt and loan obligations — 602 63 — 665 Loans and lending commitments 1 — 3,580 5,122 — 8,702 Other debt — 1,360 180 — 1,540 Total corporate and other debt — 20,639 6,064 — 26,703 Corporate equities 2 117,857 333 445 — 118,635 Securities received as collateral 13,717 19 1 — 13,737 Derivative and other contracts: Interest rate contracts 1,131 300,406 1,373 — 302,910 Credit contracts — 11,727 502 — 12,229 Foreign exchange contracts 231 74,921 13 — 75,165 Equity contracts 1,185 35,736 1,708 — 38,629 Commodity and other contracts 2,808 6,734 3,977 — 13,519 Netting 3 (4,378) (353,543) (1,944) (51,381) (411,246) Total derivative and other contracts 977 75,981 5,629 (51,381) 31,206 Investments 4 : Principal investments 20 — 743 — 763 Private equity funds — 43 — — 43 Other 217 154 215 — 586 Total investments 237 197 958 — 1,392 Physical commodities — 112 — — 112 Total trading assets 4 174,372 123,170 13,177 (51,381) 259,338 Investment securities—AFS securities 29,120 34,050 — — 63,170 Securities purchased under agreements to resell — 302 — — 302 Intangible assets — 3 — — 3 Total assets measured at fair value $ 203,492 $ 157,525 $ 13,177 $ (51,381) $ 322,813 Liabilities at Fair Value Deposits $ — $ 21 $ 42 $ — $ 63 Short-term borrowings — 404 2 — 406 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 10,745 — — — 10,745 U.S. agency securities 891 61 — — 952 Total U.S. government and agency securities 11,636 61 — — 11,697 Other sovereign government obligations 20,658 2,430 — — 23,088 Corporate and other debt: State and municipal securities — 1 — — 1 Asset-backed securities — 533 — — 533 Corporate bonds — 5,572 34 — 5,606 Lending commitments — 1 — — 1 Other debt — 14 2 — 16 Total corporate and other debt — 6,121 36 — 6,157 Corporate equities 2 37,611 29 34 — 37,674 Obligation to return securities received as collateral 20,236 25 1 — 20,262 Derivative and other contracts: Interest rate contracts 1,244 285,379 953 — 287,576 Credit contracts — 12,550 875 — 13,425 Foreign exchange contracts 17 75,510 56 — 75,583 Equity contracts 1,162 37,828 1,524 — 40,514 Commodity and other contracts 2,663 6,845 2,377 — 11,885 Netting 3 (4,378) (353,543) (1,944) (39,803) (399,668) Total derivative and other contracts 708 64,569 3,841 (39,803) 29,315 Physical commodities — 1 — — 1 Total trading liabilities 90,849 73,236 3,912 (39,803) 128,194 Securities sold under agreements to repurchase — 580 149 — 729 Other secured financings — 4,607 434 — 5,041 Long-term borrowings 47 36,677 2,012 — 38,736 Total liabilities measured at fair value $ 90,896 $ 115,525 $ 6,551 $ (39,803) $ 173,169 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting At December 31, 2015 $ in millions Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 17,658 $ — $ — $ — $ 17,658 U.S. agency securities 797 17,886 — — 18,683 Total U.S. government and agency securities 18,455 17,886 — — 36,341 Other sovereign government obligations 13,559 7,400 4 — 20,963 Corporate and other debt: State and municipal securities — 1,651 19 — 1,670 Residential mortgage-backed securities — 1,456 341 — 1,797 Commercial mortgage-backed securities — 1,520 72 — 1,592 Asset-backed securities — 494 25 — 519 Corporate bonds — 9,959 267 — 10,226 Collateralized debt and loan obligations — 284 430 — 714 Loans and lending commitments 1 — 4,682 5,936 — 10,618 Other debt — 2,263 448 — 2,711 Total corporate and other debt — 22,309 7,538 — 29,847 Corporate equities 2 106,296 379 433 — 107,108 Securities received as collateral 11,221 3 1 — 11,225 Derivative and other contracts: Interest rate contracts 406 323,586 2,052 — 326,044 Credit contracts — 22,258 661 — 22,919 Foreign exchange contracts 55 64,608 292 — 64,955 Equity contracts 653 38,552 1,084 — 40,289 Commodity and other contracts 3,140 10,873 3,358 — 17,371 Netting 3 (3,840) (380,443) (3,120) (55,562) (442,965) Total derivative and other contracts 414 79,434 4,327 (55,562) 28,613 Investments 4 : Principal investments 20 44 486 — 550 Other 163 310 221 — 694 Total investments 183 354 707 — 1,244 Physical commodities — 321 — — 321 Total trading assets 4 150,128 128,086 13,010 (55,562) 235,662 Investment securities—AFS securities 34,351 32,408 — — 66,759 Securities purchased under agreements to resell — 806 — — 806 Intangible assets — — 5 — 5 Total assets measured at fair value $ 184,479 $ 161,300 $ 13,015 $ (55,562) $ 303,232 Liabilities at Fair Value Deposits $ — $ 106 $ 19 $ — $ 125 Short-term borrowings — 1,647 1 — 1,648 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 12,932 — — — 12,932 U.S. agency securities 854 127 — — 981 Total U.S. government and agency securities 13,786 127 — — 13,913 Other sovereign government obligations 10,970 2,558 — — 13,528 Corporate and other debt: Commercial mortgage-backed securities — 2 — — 2 Corporate bonds — 5,035 — — 5,035 Lending commitments — 3 — — 3 Other debt — 5 4 — 9 Total corporate and other debt — 5,045 4 — 5,049 Corporate equities 2 47,123 35 17 — 47,175 Obligation to return securities received as collateral 19,312 3 1 — 19,316 Derivative and other contracts: Interest rate contracts 466 305,151 1,792 — 307,409 Credit contracts — 22,160 1,505 — 23,665 Foreign exchange contracts 22 65,177 151 — 65,350 Equity contracts 570 42,447 3,115 — 46,132 Commodity and other contracts 3,012 9,474 2,308 — 14,794 Netting 3 (3,840) (380,443) (3,120) (40,473) (427,876) Total derivative and other contracts 230 63,966 5,751 (40,473) 29,474 Total trading liabilities 91,421 71,734 5,773 (40,473) 128,455 Securities sold under agreements to repurchase — 532 151 — 683 Other secured financings — 2,393 461 — 2,854 Long-term borrowings — 31,058 1,987 — 33,045 Total liabilities measured at fair value $ 91,421 $ 107,470 $ 8,392 $ (40,473) $ 166,810 1. At December 31, 2016 , l oans held at fair value consisted of $ 7,217 million of corporate loans, $ 966 million of residential real estate loans and $ 519 million of wholesale real estat e loans. At December 31, 2015, l oans held at fair value consisted of $ 7,286 million of corporate loans, $ 1,885 million of residential real estate loans and $ 1,447 million of wholesale real estate loans. 2. For trading purposes, the Firm holds or sells short equity securities issued by entities in diverse industries and of varying sizes. 3. For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Counterparty and Cash Collateral Netting.” For contracts with the same counterparty, counterparty netting among positions classified within the same level is included within that shared level. For further information on derivative instrument s and hedging activities, see Note 4. 4. Amounts exclude certain investments that are measured at fair value using the NAV per share, which are not classified in the fair value hierarchy. For additional disclosure about such investments, see “Fair Value of Investments Measured at Net Asset Value” herein . Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for 2016, 2015 and 2014 . Level 3 instruments may be hedged with instruments classified in Level 1 and Level 2. As a result, the realized and unrealized gains (losses) for assets and liabilities within the Level 3 category presented in the following tables do not reflect the related reali zed and unrealized gains (losses) on hedging instruments that have been classified by the Firm within the Level 1 and/or Level 2 categories. Additionally, both observable and unobservable inputs may be used to determine the fair value of positions that t he Firm has classified within the Level 3 category. As a result, the unrealized gains (losses) during the period for assets and liabilities within the Level 3 category presented in the following tables herein may include changes in fair value during the pe riod that were attributable to both observable and unobservable inputs . Total realized and unrealized gains (losses) are primarily included in Trading revenues in the consolidated income statements . $ in millions Beginning Balance at December 31, 2015 Realized and Unrealized Gains (Losses) Purchases 1 Sales Issuances Settlements Net Transfers Ending Balance at December 31, 2016 Unrealized Gains (Losses) at December 31, 2016 Assets at Fair Value Trading assets: U.S. agency securities $ — $ (4) $ 72 $ — $ — $ — $ 6 $ 74 $ (4) Other sovereign government obligations 4 1 4 (7) — — 4 6 — Corporate and other debt: State and municipal securities 19 — 249 (18) — — — 250 — Residential mortgage-backed securities 341 (11) 35 (265) — — (8) 92 (10) Commercial mortgage-backed securities 72 (56) 46 (39) — — 100 123 (66) Asset-backed securities 25 (2) 1 (19) — — (3) 2 (1) Corporate bonds 267 9 310 (357) — — 3 232 (20) Collateralized debt and loan obligations 430 11 14 (300) — — (92) 63 (5) Loans and lending commitments 5,936 (79) 2,261 (954) — (1,863) (179) 5,122 (80) Other debt 448 20 26 (51) — — (263) 180 (13) Total corporate and other debt 7,538 (108) 2,942 (2,003) — (1,863) (442) 6,064 (195) Corporate equities 433 (2) 242 (154) — — (74) 445 — Securities received as collateral 1 — — — — — — 1 — Net derivative and other contracts 2 : Interest rate contracts 260 529 1 — — (83) (287) 420 463 Credit contracts (844) (176) — — (4) 623 28 (373) (167) Foreign exchange contracts 141 (27) — — — (220) 63 (43) (23) Equity contracts (2,031) 539 809 (5) (332) 1,073 131 184 376 Commodity and other contracts 1,050 544 24 — (114) (44) 140 1,600 304 Total net derivative and other contracts (1,424) 1,409 834 (5) (450) 1,349 75 1,788 953 Investments: Principal investments 486 (38) 398 (63) — (59) 19 743 (55) Other 221 6 — (12) — — — 215 5 Total investments 707 (32) 398 (75) — (59) 19 958 (50) Intangible assets 5 — — — — — (5) — — Liabilities at Fair Value Deposits $ 19 $ — $ — $ — $ 23 $ — $ — $ 42 $ — Short-term borrowings 1 — — — 2 (1) — 2 — Trading liabilities: Corporate and other debt: Corporate bonds — (4) (97) 145 — — (18) 34 — Other debt 4 — (2) — — — — 2 — Total corporate and other debt 4 (4) (99) 145 — — (18) 36 — Corporate equities 17 17 (10) 89 — — (45) 34 — Obligation to return securities received as collateral 1 — — — — — — 1 — Securities sold under agreements to repurchase 151 2 — — — — — 149 2 Other secured financings 461 (5) — — 79 (45) (66) 434 (5) Long-term borrowings 1,987 (19) — — 646 (304) (336) 2,012 (30) $ in millions Beginning Balance at December 31, 2014 Realized and Unrealized Gains (Losses) Purchases 1 Sales Issuances Settlements Net Transfers Ending Balance at December 31, 2015 Unrealized Gains (Losses) at December 31, 2015 Assets at Fair Value Trading assets: Other sovereign government obligations $ 41 $ (1) $ 2 $ (30) $ — $ — $ (8) $ 4 $ — Corporate and other debt: State and municipal securities — 2 3 — — — 14 19 2 Residential mortgage-backed securities 175 24 176 (83) — — 49 341 12 Commercial mortgage-backed securities 96 (28) 27 (23) — — — 72 (32) Asset-backed securities 76 (9) 23 (30) — — (35) 25 — Corporate bonds 386 (44) 374 (381) — (53) (15) 267 (44) Collateralized debt and loan obligations 1,152 123 325 (798) — (344) (28) 430 (19) Loans and lending commitments 5,874 (42) 3,216 (207) — (2,478) (427) 5,936 (76) Other debt 285 (23) 131 (5) — (81) 141 448 (9) Total corporate and other debt 8,044 3 4,275 (1,527) — (2,956) (301) 7,538 (166) Corporate equities 272 (1) 373 (333) — — 122 433 11 Securities received as collateral — — 1 — — — — 1 — Net derivative and other contracts 2 : Interest rate contracts (173) (51) 58 — (54) 207 273 260 20 Credit contracts (743) (172) 19 — (121) 196 (23) (844) (179) Foreign exchange contracts 151 53 4 — (2) (18) (47) 141 52 Equity contracts (2,165) 166 81 (1) (310) 22 176 (2,031) 62 Commodity and other contracts 1,146 433 35 — (222) (116) (226) 1,050 402 Total net derivative and other contracts (1,784) 429 197 (1) (709) 291 153 (1,424) 357 Investments: Principal investments 835 11 32 (133) — (188) (71) 486 6 Other 323 (12) 1 (6) — — (85) 221 (7) Total investments 1,158 (1) 33 (139) — (188) (156) 707 (1) Intangible assets 6 — — — — (1) — 5 — Liabilities at Fair Value Deposits $ — $ (1) $ — $ — $ 18 $ — $ — $ 19 $ (1) Short-term borrowings — — — — 1 — — 1 — Trading liabilities: Corporate and other debt: Corporate bonds 78 — (19) 6 — (65) — — — Lending commitments 5 5 — — — — — — 5 Other debt 38 — (1) 7 — (39) (1) 4 — Total corporate and other debt 121 5 (20) 13 — (104) (1) 4 5 Corporate equities 45 79 (86) 32 — — 105 17 79 Obligation to return securities received as collateral — — — 1 — — — 1 — Securities sold under agreements to repurchase 153 2 — — — — — 151 2 Other secured financings 149 192 — — 327 (232) 409 461 181 Long-term borrowings 1,934 61 — — 881 (364) (403) 1,987 52 $ in millions Beginning Balance at December 31, 2013 Realized and Unrealized Gains (Losses) Purchases 1 Sales Issuances Settlements Net Transfers Ending Balance at December 31, 2014 Unrealized Gains (Losses) at December 31, 2014 Assets at Fair Value Trading assets: Other sovereign government obligations $ 27 $ 1 $ 48 $ (34) $ — $ — $ (1) $ 41 $ — Corporate and other debt: Residential mortgage-backed securities 47 9 105 (14) — — 28 175 4 Commercial mortgage-backed securities 108 65 16 (102) — — 9 96 45 Asset-backed securities 103 3 66 (96) — — — 76 9 Corporate bonds 522 86 106 (306) — — (22) 386 66 Collateralized debt and loan obligations 1,468 142 644 (964) — (143) 5 1,152 27 Loans and lending commitments 5,129 (87) 3,784 (415) — (2,552) 15 5,874 (191) Other debt 27 21 274 (35) — (2) — 285 20 Total corporate and other debt 7,404 239 4,995 (1,932) — (2,697) 35 8,044 (20) Corporate equities 190 20 146 (102) — — 18 272 (3) Net derivative and other contracts 2, 3 : Interest rate contracts 113 (258) 18 — (14) (43) 11 (173) (349) Credit contracts (147) (408) 68 — (179) (15) (62) (743) (474) Foreign exchange contracts 68 (13) 7 — — 108 (19) 151 (17) Equity contracts (831) (527) 339 (2) (562) (46) (536) (2,165) (600) Commodity and other contracts 876 158 287 — (52) (123) — 1,146 72 Total net derivative and other contracts 79 (1,048) 719 (2) (807) (119) (606) (1,784) (1,368) Investments: Principal investments 2,160 53 36 (181) — (1,258) 25 835 49 Other 538 17 17 (29) — — (220) 323 24 Total investments 2,698 70 53 (210) — (1,258) (195) 1,158 73 Intangible assets 8 — — — — (2) — 6 (1) Liabilities at Fair Value Short-term borrowings $ 1 $ — $ — $ — $ — $ (1) $ — $ — $ — Trading liabilities: Corporate and other debt: Corporate bonds 22 1 (46) 117 — — (14) 78 2 Lending commitments 2 (3) — — — — — 5 (3) Other debt 48 7 (8) — — — 5 38 (2) Total corporate and other debt 72 5 (54) 117 — — (9) 121 (3) Corporate equities 8 — (3) 39 — — 1 45 — Securities sold under agreements to repurchase 154 1 — — — — — 153 1 Other secured financings 278 (9) — — 21 (201) 42 149 (6) Long-term borrowings 1,887 109 — — 791 (391) (244) 1,934 102 Loan originations and consolidations of VIEs are included in purchases . Net derivative a |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 4. 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, currencies, investment grade and non-investment grade corporate credits, loans, bonds, U.S. and other sovereign securities, emerging market bonds and loans, credit indices, asset-backed security indices, property indices, mortgage-related and other asset-backed securities, 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. He dging 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 mar ket-making activities on a Firm-wide basis, on a worldwide trading division level and on an individual product basis. Derivative Assets and Liabilities Derivative Assets at December 31, 2016 Fair Value Notional $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Bilateral OTC Cleared OTC Exchange-Traded Total Derivatives designated as accounting hedges Interest rate contracts $ 1,924 $ 1,049 $ — $ 2,973 $ 30,280 $ 37,632 $ — $ 67,912 Foreign exchange contracts 249 18 — 267 6,400 339 — 6,739 Total 2,173 1,067 — 3,240 36,680 37,971 — 74,651 Derivatives not designated as accounting hedges 1 Interest rate contracts 200,336 99,217 384 299,937 3,586,279 6,224,104 2,585,772 12,396,155 Credit contracts 9,837 2,392 — 12,229 332,641 111,954 — 444,595 Foreign exchange contracts 73,645 1,022 231 74,898 1,579,718 51,775 13,038 1,644,531 Equity contracts 20,710 — 17,919 38,629 337,791 — 241,837 579,628 Commodity and other contracts 9,792 — 3,727 13,519 67,216 — 79,670 146,886 Total 314,320 102,631 22,261 439,212 5,903,645 6,387,833 2,920,317 15,211,795 Total gross derivatives 2 $ 316,493 $ 103,698 $ 22,261 $ 442,452 $ 5,940,325 $ 6,425,804 $ 2,920,317 $ 15,286,446 Amounts offset Counterparty netting (243,488) (100,477) (19,607) (363,572) Cash collateral netting (45,875) (1,799) — (47,674) Total derivative assets in Trading assets $ 27,130 $ 1,422 $ 2,654 $ 31,206 Amounts not offset 3 Financial instruments collateral (10,293) — — (10,293) Other cash collateral (124) — — (124) Net amounts $ 16,713 $ 1,422 $ 2,654 $ 20,789 Derivative Liabilities at December 31, 2016 Fair Value Notional $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Bilateral OTC Cleared OTC Exchange-Traded Total Derivatives designated as accounting hedges Interest rate contracts $ 77 $ 647 $ — $ 724 $ 2,024 $ 51,934 $ — $ 53,958 Foreign exchange contracts 15 25 — 40 1,480 1,071 — 2,551 Total 92 672 — 764 3,504 53,005 — 56,509 Derivatives not designated as accounting hedges 1 Interest rate contracts 183,063 103,392 397 286,852 3,461,927 6,086,774 896,971 10,445,672 Credit contracts 11,024 2,401 — 13,425 358,927 96,397 — 455,324 Foreign exchange contracts 74,575 952 16 75,543 1,556,918 47,647 14,338 1,618,903 Equity contracts 22,531 — 17,983 40,514 320,520 — 272,669 593,189 Commodity and other contracts 8,303 — 3,582 11,885 77,527 — 59,387 136,914 Total 299,496 106,745 21,978 428,219 5,775,819 6,230,818 1,243,365 13,250,002 Total gross derivatives 2 $ 299,588 $ 107,417 $ 21,978 $ 428,983 $ 5,779,323 $ 6,283,823 $ 1,243,365 $ 13,306,511 Amounts offset Counterparty netting (243,488) (100,477) (19,607) (363,572) Cash collateral netting (30,405) (5,691) — (36,096) Total derivative liabilities in Trading liabilities $ 25,695 $ 1,249 $ 2,371 $ 29,315 Amounts not offset 3 Financial instruments collateral (7,638) — (585) (8,223) Other cash collateral (10) (1) — (11) Net amounts $ 18,047 $ 1,248 $ 1,786 $ 21,081 Derivative Assets at December 31, 2015 Fair Value Notional $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Bilateral OTC Cleared OTC Exchange-Traded Total Derivatives designated as accounting hedges Interest rate contracts $ 2,825 $ 1,442 $ — $ 4,267 $ 36,999 $ 35,362 $ — $ 72,361 Foreign exchange contracts 166 1 — 167 5,996 167 — 6,163 Total 2,991 1,443 — 4,434 42,995 35,529 — 78,524 Derivatives not designated as accounting hedges 4 Interest rate contracts 220,289 101,276 212 321,777 4,348,002 5,748,525 1,218,645 11,315,172 Credit contracts 19,310 3,609 — 22,919 585,731 139,301 — 725,032 Foreign exchange contracts 64,438 295 55 64,788 1,907,290 13,402 7,715 1,928,407 Equity contracts 20,212 — 20,077 40,289 316,770 — 229,859 546,629 Commodity and other contracts 13,333 — 4,038 17,371 73,133 — 82,313 155,446 Total 337,582 105,180 24,382 467,144 7,230,926 5,901,228 1,538,532 14,670,686 Total gross derivatives 2 $ 340,573 $ 106,623 $ 24,382 $ 471,578 $ 7,273,921 $ 5,936,757 $ 1,538,532 $ 14,749,210 Amounts offset Counterparty netting (265,707) (104,294) (21,592) (391,593) Cash collateral netting (50,335) (1,037) — (51,372) Total derivative assets in Trading assets $ 24,531 $ 1,292 $ 2,790 $ 28,613 Amounts not offset 3 Financial instruments collateral (9,190) — — (9,190) Other cash collateral (9) — — (9) Net amounts $ 15,332 $ 1,292 $ 2,790 $ 19,414 Derivative Liabilities at December 31, 2015 Fair Value Notional $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Bilateral OTC Cleared OTC Exchange-Traded Total Derivatives designated as accounting hedges Interest rate contracts $ 20 $ 250 $ — $ 270 $ 3,560 $ 9,869 $ — $ 13,429 Foreign exchange contracts 56 6 — 62 4,604 455 — 5,059 Total 76 256 — 332 8,164 10,324 — 18,488 Derivatives not designated as accounting hedges 4 Interest rate contracts 203,004 103,852 283 307,139 4,030,039 5,682,322 1,077,710 10,790,071 Credit contracts 19,942 3,723 — 23,665 562,027 131,388 — 693,415 Foreign exchange contracts 65,034 232 22 65,288 1,868,015 13,322 2,655 1,883,992 Equity contracts 25,708 — 20,424 46,132 332,734 — 229,266 562,000 Commodity and other contracts 10,907 — 3,887 14,794 63,283 — 62,974 126,257 Total 324,595 107,807 24,616 457,018 6,856,098 5,827,032 1,372,605 14,055,735 Total gross derivatives 2 $ 324,671 $ 108,063 $ 24,616 $ 457,350 $ 6,864,262 $ 5,837,356 $ 1,372,605 $ 14,074,223 Amounts offset Counterparty netting (265,707) (104,294) (21,592) (391,593) Cash collateral netting (33,332) (2,951) — (36,283) Total derivative liabilities in Trading liabilities $ 25,632 $ 818 $ 3,024 $ 29,474 Amounts not offset 3 Financial instruments collateral (5,384) — (405) (5,789) Other cash collateral (5) — — (5) Net amounts $ 20,243 $ 818 $ 2,619 $ 23,680 1 . Notional amounts include gross notionals related to open long and short futures contracts of $ 2,088.0 billion and $ 332.4 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 784 million and $ 174 million is included in Customer and other receivables and Customer and other payables, respectively, in the consolidated balance sheets. 2. Amounts include transactions that are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable as follows: $ 3.7 billion of derivative assets and $ 3.5 bi llion of derivative liabilities at December 31, 2016 and $ 4.2 billion of derivative assets and $ 5.2 billion of derivative liabilities at December 31, 2015 . 3. Amounts relate to master netting agreements and collateral agreements that have been determi ned by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. 4. Notional amounts include gross notionals related to open long and short futures contracts of $ 1,009.5 billion and $ 653.0 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 1,145 million and $ 437 million is included in Customer and other receivables and Customer and other payables, respectively, in the consolidated balance sheets. For information related to offsetting of certain collateralized transactions, see Note 6. Gains (Losses) on Fair Value Hedges Gains (Losses) Recognized in Interest Expense $ in millions 2016 2015 2014 Derivatives $ (1,738) $ (700) $ 1,462 Borrowings 1,541 461 (1,616) Total $ (197) $ (239) $ (154) Gains (Losses) on Effective Portion of Net Investment Hedges Gains (Losses) Recognized in OCI $ in millions 2016 2015 2014 Foreign exchange contracts 1 $ (1) $ 434 $ 606 1 . Losses of $ 74 million in 2016, $ 149 million in 2015 and $ 186 million in 2014 recognized in Interest income were related to the forward points on the hedging instruments that were excluded from hedge effectiveness testing . Trading Revenues by Product Type $ in millions 2016 2015 2014 Interest rate contracts $ 1,522 $ 1,249 $ 1,065 Foreign exchange contracts 1,156 984 729 Equity security and index contracts 1 5,690 5,695 4,603 Commodity and other contracts 56 793 1,055 Credit contracts 1,785 775 1,274 Subtotal $ 10,209 $ 9,496 $ 8,726 Debt valuation adjustment 2 — 618 651 Total trading revenues $ 10,209 $ 10,114 $ 9,377 1. Dividend income is included within equity security and index contracts. 2. In 2016, in accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , unrealized DVA gains (losses) are recorded within OCI in the consolidated comprehensive income statements. In 2015 and 2014 , the DVA gains (losses) were recorded within Trading revenues in the consolidated income statements. See Notes 2 and 15 for further inf ormation. The previous table summarizes gains and losses included in Trading revenues in the consolidated income statements from trading activities. These activities include revenues related to derivative and non-derivative financial instruments. The Fi rm generally utilizes financial instruments across a variety of product types in connection with their market-making and related risk management strategies. Accordingly, the trading revenues presented in the previous table are not representative of the man ner in which the Firm manages its business activities and are prepared in a manner similar to the presentation of trading revenues for regulatory reporting purposes. OTC Derivative Products—Trading Assets Counterparty Credit Rating and Remaining Maturity of OTC Derivative Assets Fair Value at December 31, 2016 1 Contractual Years to Maturity Cross-Maturity and Cash Collateral Netting 2 Net Amounts Post-cash Collateral Net Amounts Post-collateral 3 $ in millions Less than 1 1-3 3-5 Over 5 Credit Rating 4 AAA $ 150 $ 428 $ 918 $ 2,931 $ (3,900) $ 527 $ 485 AA 3,177 2,383 2,942 10,194 (11,813) 6,883 4,114 A 9,244 6,676 5,495 21,322 (31,425) 11,312 6,769 BBB 4,423 3,085 2,434 13,023 (16,629) 6,336 4,852 Non-investment grade 2,283 1,702 1,722 1,794 (4,131) 3,370 1,915 Total $ 19,277 $ 14,274 $ 13,511 $ 49,264 $ (67,898) $ 28,428 $ 18,135 Fair Value at December 31, 2015 1 Contractual Years to Maturity Cross-Maturity and Cash Collateral Netting 2 Net Amounts Post-cash Collateral Net Amounts Post-collateral 3 $ in millions Less than 1 1-3 3-5 Over 5 Credit Rating 4 AAA $ 203 $ 453 $ 827 $ 3,665 $ (4,319) $ 829 $ 715 AA 2,689 2,000 1,876 9,223 (10,981) 4,807 2,361 A 9,748 8,191 4,774 20,918 (34,916) 8,715 5,448 BBB 3,614 4,863 1,948 11,801 (15,086) 7,140 4,934 Non-investment grade 3,982 2,333 1,157 3,567 (6,716) 4,323 3,166 Total $ 20,236 $ 17,840 $ 10,582 $ 49,174 $ (72,018) $ 25,814 $ 16,624 1 . Fair values shown represent the Firm’s net exposure to counterparties related to its OTC derivative products. 2 . Amounts represent the netting of receivable balances with payable balances for the same counterparty across maturity categories. Receivable and payable balances with the same counterparty in the same maturity category are netted within such maturity category, where appropriate. Cash collateral received is netted on a counterparty basis, provided legal right of offset exists. 3 . Fair value is shown, net of collateral received (primarily cash and U.S. government and agency securities). 4 . Obligor credit ratings are determined internally by the Credit Risk Management Department. Credit Risk-Related Contingencies In connection with certain OTC trading agreements, the Firm may be required to provide additional collateral or immediately settle any outstanding liability balances with certain counterparties in the event of a credit rating downgrade of the Firm. The following table presents the aggregate fair value of certain derivative contracts that contain credit risk-related contingent features that are in a net liability position for which the Firm has posted collateral in the normal course of business. Net Derivative Liabilities and Collat eral Posted $ in millions At December 31, 2016 At December 31, 2015 Net derivative liabilities with credit risk- related contingent features $ 22,939 $ 23,526 Collateral posted 17,040 19,070 The additional collateral or termination payments that may be called in the event of a future credit rating downgrade vary by contract and can be based on ratings by either or both of Moody’s Investors Service, Inc. (“ Moody’s”) and Standard & Poor’s Global Ratings (“ S&P”) . The following table shows the future potential collateral amounts and termination payments that could be called or required by counterparties or exchange and clearing organizations in the event of one-notch or two-notch downgrade scenarios based on the relevant contractual downgrade triggers. Incremental Collateral or Termination Payments upon Potential Future Ratings Downgrade $ in millions At December 31, 2016 1 One-notch downgrade $ 1,269 Two-notch downgrade 692 1 . Amounts include $ 1,231 million related to bilateral arrangements between the Firm and other parties where upon the downgrade of one party, the downgraded party must deliver collateral to the other party. These bilateral downgrade arrangements are used by the Firm to manage the risk of counterparty downgrades. Credit Derivatives and Other Credit Contracts The Firm enters into credit derivatives, principally through credit default swaps, under which it receives or provides protection against the risk of default on a set of debt obligations issued by a specified reference entity or entities. A majority of the Firm’s counterparties for these derivatives are banks, broker-dealers, and insurance and other financial institutions. Protection Sold and Purchased with Credit Default Swaps At December 31, 2016 Protection Sold Protection Purchased $ in millions Notional Fair Value (Asset)/ Liability Notional Fair Value (Asset)/ Liability Credit default swaps Single name $ 266,918 $ (753) $ 269,623 $ 826 Index and basket 130,383 374 122,061 (481) Tranched index and basket 32,429 (670) 78,505 1,900 Total $ 429,730 $ (1,049) $ 470,189 $ 2,245 At December 31, 2015 Protection Sold Protection Purchased $ in millions Notional Fair Value (Asset)/ Liability Notional Fair Value (Asset)/ Liability Credit default swaps Single name $ 420,806 $ 1,980 $ 405,361 $ (2,079) Index and basket 199,688 (102) 173,936 (82) Tranched index and basket 69,025 (1,093) 149,631 2,122 Total $ 689,519 $ 785 $ 728,928 $ (39) For single name and non-tranched index and basket credit default swaps, the Firm has purchased protection with a not ional amount of approximately $ 389.2 billion and $ 577.7 billion at December 31, 2016 and December 31, 2015 , respectively, compared with a not ional amount of approximately $ 395.5 billion and $ 619.5 billion (included in the following tables) at December 31, 2016 and December 31, 2015 , respectively, of credit protection sold with identical un de rlying reference obligations. 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 mi tigation 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, a nd 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 credit default swaps where credit protection was sold. Credit Ratings of Reference Obligation and Maturities of Credit Protection Sold At December 31, 2016 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability 1 Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Single name credit default swaps 2 Investment grade $ 79,449 $ 70,796 $ 34,529 $ 10,293 $ 195,067 $ (1,060) Non-investment grade 34,571 25,820 10,436 1,024 71,851 307 Total single name credit default swaps 114,020 96,616 44,965 11,317 266,918 (753) Index and basket credit default swaps 2 Investment grade 26,530 21,388 35,060 9,096 92,074 (846) Non-investment grade 26,135 22,983 11,759 9,861 70,738 550 Total index and basket credit default swaps 52,665 44,371 46,819 18,957 162,812 (296) Total credit default swaps sold $ 166,685 $ 140,987 $ 91,784 $ 30,274 $ 429,730 $ (1,049) Other credit contracts 49 6 — 215 270 — Total credit derivatives and other credit contracts $ 166,734 $ 140,993 $ 91,784 $ 30,489 $ 430,000 $ (1,049) At December 31, 2015 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability 1 Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Single name credit default swaps 2 Investment grade $ 84,543 $ 138,467 $ 63,754 $ 12,906 $ 299,670 $ (1,831) Non-investment grade 38,054 56,261 24,432 2,389 121,136 3,811 Total single name credit default swaps $ 122,597 $ 194,728 $ 88,186 $ 15,295 $ 420,806 $ 1,980 Index and basket credit default swaps 2 Investment grade $ 33,507 $ 59,403 $ 45,505 $ 5,327 $ 143,742 $ (1,977) Non-investment grade 52,590 43,899 15,480 13,002 124,971 782 Total index and basket credit default swaps $ 86,097 $ 103,302 $ 60,985 $ 18,329 $ 268,713 $ (1,195) Total credit default swaps sold $ 208,694 $ 298,030 $ 149,171 $ 33,624 $ 689,519 $ 785 Other credit contracts 19 107 2 332 460 (24) Total credit derivatives and other credit contracts $ 208,713 $ 298,137 $ 149,173 $ 33,956 $ 689,979 $ 761 1. Fair value amounts are shown on a gross basis prior to cash collateral or counterparty netting. 2 . In order to provide an indication of the current payment status or performance risk of the CDS, a breakdown of CDS based on the Firm’s internal credit ratings by investment grade and non-investment grade is provided. Internal credit ratings serve as the Credit Risk Management Department’s assessment of credit risk and the basis for a comprehensive credit limits framework used to control credit risk. The Firm uses quantitative models and judgment to estimate the various risk parameters related to each obligor. Single Name Credit Default Swaps A credit default swap protects the buyer against the loss of principal on a bond or loan in case of a default by the issuer. The protection buyer pays a periodic premium (generally quarterly) over the life of the contract and is protected for the period. The Firm, in turn, performs under a credit default swap if a credit event as defined under the contract occurs. Typical credit events include bankruptcy, dissolution or insolvency of the referenced entity, failure to pay and restructuring of the obligations of the referenced entity. Index and Basket Credit Default Swaps Index and basket credit default swaps are products where credit protection is provided on a portfolio of single name credit default swaps. Gen erally, 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 credit default swap. The Firm also enters into tranched index and basket credit default swaps where credit protection is provided on a particular portion of the portfolio loss distribution. The most junior tranches cover initial defaults, and once losses exceed the notional of the tranche, they are passed on to the next most senior tranche in the capital structure. Cre dit Protection Sold through CLNs and CDOs The Firm has invested in credit-linked notes (“CLNs”) and CDOs, which are hybrid instruments containing embedded derivatives, in which credit protection has been sold to the issuer of the note. If there is a cre dit 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, 2016 | |
Investment securities | |
Investment Securities | 5. Investment Securities AFS and HTM Securities At December 31, 2016 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 28,371 $ 1 $ 545 $ 27,827 U.S. agency securities 1 22,348 14 278 22,084 Total U.S. government and agency securities 50,719 15 823 49,911 Corporate and other debt: Commercial mortgage- backed securities: Agency 1,850 2 44 1,808 Non-agency 2,250 11 16 2,245 Auto loan asset-backed securities 1,509 1 1 1,509 Corporate bonds 3,836 7 22 3,821 Collateralized loan obligations 540 — 1 539 FFELP student loan asset- backed securities 2 3,387 5 61 3,331 Total corporate and other debt 13,372 26 145 13,253 Total AFS debt securities 64,091 41 968 63,164 AFS equity securities 15 — 9 6 Total AFS securities 64,106 41 977 63,170 HTM securities U.S. government securities: U.S. Treasury securities 5,839 1 283 5,557 U.S. agency securities 1 11,083 1 188 10,896 Total HTM securities 16,922 2 471 16,453 Total Investment securities $ 81,028 $ 43 $ 1,448 $ 79,623 At December 31, 2015 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 31,555 $ 5 $ 143 $ 31,417 U.S. agency securities 1 21,103 29 156 20,976 Total U.S. government and agency securities 52,658 34 299 52,393 Corporate and other debt: Commercial mortgage- backed securities: Agency 1,906 1 60 1,847 Non-agency 2,220 3 25 2,198 Auto loan asset-backed securities 2,556 — 9 2,547 Corporate bonds 3,780 5 30 3,755 Collateralized loan obligations 502 — 7 495 FFELP student loan asset- backed securities 2 3,632 — 115 3,517 Total corporate and other debt 14,596 9 246 14,359 Total AFS debt securities 67,254 43 545 66,752 AFS equity securities 15 — 8 7 Total AFS securities 67,269 43 553 66,759 HTM securities U.S. government securities: U.S. Treasury securities 1,001 — 3 998 U.S. agency securities 1 4,223 1 34 4,190 Total HTM securities 5,224 1 37 5,188 Total Investment securities $ 72,493 $ 44 $ 590 $ 71,947 1. U.S. agency securities consist mainly of agency-issued debt, agency mortgage pass-through pool securities and collateralized mortgage obligations. 2. Amounts are backed by a guarantee from the U.S. Department of Education of at least 95 % of the principal balance and interest on such loans. Investment Securities in an Unrealized Loss Position Investment Securities in an Unrealized Loss Position At December 31, 2016 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 25,323 $ 545 $ — $ — $ 25,323 $ 545 U.S. agency securities 16,760 278 125 — 16,885 278 Total U.S. government and agency securities 42,083 823 125 — 42,208 823 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,245 44 — — 1,245 44 Non-agency 763 11 594 5 1,357 16 Auto loan asset-backed securities 659 1 123 — 782 1 Corporate bonds 2,050 21 142 1 2,192 22 Collateralized loan obligations 178 — 239 1 417 1 FFELP student loan asset-backed securities 2,612 61 — — 2,612 61 Total corporate and other debt 7,507 138 1,098 7 8,605 145 Total AFS debt securities 49,590 961 1,223 7 50,813 968 AFS equity securities 6 9 — — 6 9 Total AFS securities 49,596 970 1,223 7 50,819 977 HTM securities U.S. government and agency securities: U.S. Treasury securities 5,057 283 — — 5,057 283 U.S. agency securities 10,612 188 — — 10,612 188 Total HTM securities 15,669 471 — — 15,669 471 Total Investment securities $ 65,265 $ 1,441 $ 1,223 $ 7 $ 66,488 $ 1,448 At December 31, 2015 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 25,994 $ 126 $ 2,177 $ 17 $ 28,171 $ 143 U.S. agency securities 14,242 135 639 21 14,881 156 Total U.S. government and agency securities 40,236 261 2,816 38 43,052 299 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,185 44 422 16 1,607 60 Non-agency 1,479 21 305 4 1,784 25 Auto loan asset-backed securities 1,644 7 881 2 2,525 9 Corporate bonds 2,149 19 525 11 2,674 30 Collateralized loan obligations 352 5 143 2 495 7 FFELP student loan asset-backed securities 2,558 79 929 36 3,487 115 Total corporate and other debt 9,367 175 3,205 71 12,572 246 Total AFS debt securities 49,603 436 6,021 109 55,624 545 AFS equity securities 7 8 — — 7 8 Total AFS securities 49,610 444 6,021 109 55,631 553 HTM securities U.S. government and agency securities: U.S. Treasury securities 898 3 — — 898 3 U.S. agency securities 3,677 34 — — 3,677 34 Total HTM securities 4,575 37 — — 4,575 37 Total Investment securities $ 54,185 $ 481 $ 6,021 $ 109 $ 60,206 $ 590 The Firm believes there are no securities in an unrealized loss position that are other-than-temporarily-impaired at December 31, 2016 and December 31, 2015 for the reasons discussed herein. For AFS debt securities, the Firm does not intend to sell the securities and is not likely to be required to sell the securities prior to recovery of amortized cost basis. For AFS and HTM debt securities, the securities have not experienced credit losses as the net unrealized losses reported in the previous table are primarily due to higher interest rates since those securities were purchased. Additionally, the Firm does not expect to experience a credit loss based on consideration of the relevant information (as discussed in Note 2 ), including for U.S. governme nt and agency securities, the existence of an explicit and implicit guarantee provided by the U.S. government. The risk of credit loss on securities in an unrealized loss position is considered minimal because the Firm’s agency securities, as well as ABS, CMBS and CLOs, are highly rated and because corporate bonds are all investment grade. For AFS equity securities, the Firm has the intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in market v alue. See Note 13 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, non-agency CMBS, auto loan ABS, CLO and FFELP student loan ABS . Investment Securities by Contractual Maturity At December 31, 2016 $ in millions Amortized Cost Fair Value Average Yield AFS debt securities U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 2,162 $ 2,160 0.8% After 1 year through 5 years 20,280 20,089 1.1% After 5 years through 10 years 5,929 5,578 1.4% Total 28,371 27,827 U.S. agency securities: Due within 1 year 36 36 0.7% After 1 year through 5 years 3,581 3,570 0.7% After 5 years through 10 years 1,255 1,251 2.0% After 10 years 17,476 17,227 1.8% Total 22,348 22,084 Total U.S. government and agency securities 50,719 49,911 1.4% Corporate and other debt: Commercial mortgage-backed securities: Agency: Due within 1 year 116 116 1.1% After 1 year through 5 years 267 267 1.2% After 5 years through 10 years 546 546 1.2% After 10 years 921 879 1.6% Total 1,850 1,808 Non-agency: After 5 years through 10 years 35 34 2.5% After 10 years 2,215 2,211 2.0% Total 2,250 2,245 Auto loan asset-backed securities: Due within 1 year 84 84 1.3% After 1 year through 5 years 1,363 1,363 1.4% After 5 years through 10 years 62 62 1.6% Total 1,509 1,509 Corporate bonds: Due within 1 year 860 859 1.3% After 1 year through 5 years 2,270 2,265 2.0% After 5 years through 10 years 706 697 2.4% Total 3,836 3,821 Collateralized loan obligations: After 5 years through 10 years 362 361 1.5% After 10 years 178 178 2.4% Total 540 539 FFELP student loan asset-backed securities: After 1 year through 5 years 70 70 0.7% After 5 years through 10 years 806 785 0.9% After 10 years 2,511 2,476 1.0% Total 3,387 3,331 Total corporate and other debt 13,372 13,253 1.6% Total AFS debt securities 64,091 63,164 1.4% AFS equity securities 15 6 ― % Total AFS securities 64,106 63,170 1.4% HTM securities U.S. government securities: U.S. Treasury securities: Due within 1 year 500 500 0.7% After 1 year through 5 years 2,013 2,003 1.3% After 5 years through 10 years 2,600 2,433 1.6% After 10 years 726 621 2.3% Total 5,839 5,557 U.S. agency securities: After 10 years 11,083 10,896 2.4% Total 11,083 10,896 Total HTM securities 16,922 16,453 2.1% Total Investment securities $ 81,028 $ 79,623 1.6% Gross Realized Gains and Losses on Sales of AFS Securities $ in millions 2016 2015 2014 Gross realized gains $ 133 $ 116 41 Gross realized (losses) (21) (32) (1) Total $ 112 $ 84 40 Gross realized gains and losses are recognized in Other revenues in the consolidated income statements . |
Collateralized Transactions
Collateralized Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Collateralized Transactions | |
Collateralized Transactions | 6. Collateralized Transactions The Firm enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate cust omers’ needs and to finance its inventory positions. The Firm manages credit exposure arising from such transactions by, in appropriate circumstances, entering into master netting agreements and collateral agreements with counterparties that provide the Firm, in the event of a counterparty default (such as bankruptcy or a counterparty’s failure to pay or perform), with the right to net a counterparty’s rights and obligations under such agreement and liquida te 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 secu rities 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). In certain cases, the Firm may be permitted to post collateral to a third-party custodian under a tri-party arrangement that enables the Firm to take control of such collateral in the event of a counterparty default. 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 ris k related to a decline in the market value of collateral (pledged or received) is managed by setting appropriate market-based haircuts. Increases in collateral margin calls on secured financing due to market value declines may be mitigated by increases in collateral margin calls on 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 financing in a manner that reduces the potential refinancing risk of secured financing for less liquid assets. The Firm considers the quality of c ollateral when negotiating collateral eligibility with counterparties, as defined by its fundability criteria. The Firm utilizes shorter-term secured financing for highly liquid assets and has established longer tenor limits for less liquid assets, for whi ch funding may be at risk in the event of a market disruption. Offsetting of Certain Collateralized Transactions At December 31, 2016 $ in millions Gross Amounts 1 Amounts Offset Net Amounts Presented Amounts Not Offset 2 Net Amounts Assets Securities purchased under agreements to resell $ 182,888 $ (80,933) $ 101,955 $ (93,365) $ 8,590 Securities borrowed 129,934 (4,698) 125,236 (118,974) 6,262 Liabilities Securities sold under agreements to repurchase $ 135,561 $ (80,933) $ 54,628 $ (47,933) $ 6,695 Securities loaned 20,542 (4,698) 15,844 (15,670) 174 At December 31, 2015 $ in millions Gross Amounts 1 Amounts Offset Net Amounts Presented Amounts Not Offset 2 Net Amounts Assets Securities purchased under agreements to resell $ 135,714 $ (48,057) $ 87,657 $ (84,752) $ 2,905 Securities borrowed 147,445 (5,029) 142,416 (134,250) 8,166 Liabilities Securities sold under agreements to repurchase $ 84,749 $ (48,057) $ 36,692 $ (31,604) $ 5,088 Securities loaned 24,387 (5,029) 19,358 (18,881) 477 1. Amounts include transactions that are either not subject to master netting agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable as follows: $ 7.8 billion of Securities purchased under agreements to resell, $ 2.6 billion of Securities borrowed, $ 6.5 billion of Securities sold under agreements to repurchase and $ 0.2 b illion of Securitie s loaned at December 31, 2016 and $2.6 billion of Securities purchased under agreements to resell, $3.0 billion of Securities borrowed and $4.9 billion of Securities sold under agreements to repurchase at December 31, 2015 . 2. Amou nts 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 rel ated to offsetting of derivatives, see Note 4. Maturities and Collateral Pledged Gross Secured Financing Balances by Remaining Contractual Maturity At December 31, 2016 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase 1 $ 41,549 $ 36,703 $ 24,648 $ 32,661 $ 135,561 Securities loaned 1 9,487 851 2,863 7,341 20,542 Gross amount of secured financing included in the offsetting disclosure $ 51,036 $ 37,554 $ 27,511 $ 40,002 $ 156,103 Trading liabilities ― Obligation to return securities received as collateral 20,262 — — — 20,262 Total $ 71,298 $ 37,554 $ 27,511 $ 40,002 $ 176,365 At December 31, 2015 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase 1 $ 20,410 $ 25,245 $ 13,221 $ 25,873 $ 84,749 Securities loaned 1 12,247 478 2,156 9,506 24,387 Gross amount of secured financing included in the offsetting disclosure $ 32,657 $ 25,723 $ 15,377 $ 35,379 $ 109,136 Trading liabilities ― Obligation to return securities received as collateral 19,316 — — — 19,316 Total $ 51,973 $ 25,723 $ 15,377 $ 35,379 $ 128,452 1. Amounts are presented on a gross basis, prior to netting in the consolidated balance sheets . Gross Secured Financing Balances by Class of Collateral Pledged $ in millions At December 31, 2016 At December 31, 2015 Securities sold under agreements to repurchase 1 U.S. government and agency securities $ 56,372 $ 36,609 State and municipal securities 1,363 173 Other sovereign government obligations 42,790 24,820 Asset-backed securities 1,918 441 Corporate and other debt 9,086 4,020 Corporate equities 23,152 18,473 Other 880 213 Total securities sold under agreements to repurchase $ 135,561 $ 84,749 Securities loaned 1 U.S. government and agency securities $ 1 $ — Other sovereign government obligations 4,762 7,336 Corporate and other debt 73 71 Corporate equities 15,693 16,972 Other 13 8 Total securities loaned $ 20,542 $ 24,387 Gross amount of secured financing included in the offsetting disclosure $ 156,103 $ 109,136 Trading liabilities ― Obligation to return securities received as collateral Corporate and other debt $ — $ 3 Corporate equities 20,247 19,313 Other 15 — Total Trading liabilities ― obligation to return securities received as collateral $ 20,262 $ 19,316 Total $ 176,365 $ 128,452 1. Amounts are presented on a gross basis, prior to netting in the consolidated balance sheets . Trading Assets Pledged The Firm pledges its trading assets to collateralize securities sold under agreements to repurchase, securities loaned and other secured financings. Pledged financial instruments that can be sold or repledged by the secured party are identified as Trading assets (pledged to various parties) in the consolidated balance sheets. At December 31, 2016 and December 31, 2015 , the carrying value of Trading assets that have been loaned or pledged to counterparties, where those counterparties do not have the right to sell or repledge the collateral, was $ 41.4 billion and $ 35.0 billion, respecti vely. Collateral Received The Firm receives collateral in the form of securities in connection with securities purchased under agreements to resell, securities borrowed and derivative transactions, customer margin loans and securities-based lending. I n many cases, the Firm is permitted to sell or repledge these securities held as collateral and use the securities to secure securities sold under agreements to repurchase , to enter into securities lending and derivative transactions or for delivery to cou nterparties to cover short positions. The Firm additionally receives securities as collateral in connection with certain securities-for-securities transactions. In instances where the Firm is the lender and permitted to sell or repledge these securities, it reports the fair value of the collateral received and the related obligation to return the collateral included in Trading assets and Trading liabilities, respectively, in its consolidated balance sheet s. At December 31, 2016 and December 31, 2015 , the total fair value of financial instruments received as collateral where the Firm is permitted to sell or repledge the securities was $ 561.2 billion and $ 522.6 billion, respectively, and the fair value of the portion that had been sold or repledged was $ 430.9 billion and $ 398.1 billion, respectively. Concentration Risk 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. Trading assets owned by the Firm include U.S. government and agency securities and securities issued by other sovereign governments (principally the United Kingdom (“U.K.”), Brazil and Japan), which, in the aggregate, represented approximately 8 % and 7 % of the Firm’s total assets at December 31, 2016 and December 31, 2015, respectively. In addition, substantially all of the collateral held by the Firm for resale agreements or bonds borrowed, which together represented approximately 18 % and 15 % of the Firm’s total assets at December 31, 2016 and December 31, 2015, respectively, consists of securities issued by the U.S. government, federal agencies or other sovereign government obligations. Positions taken and commitments made by the Firm, including position s taken and underwriting and financing commitments made in connection with its private equity, principal investment and lending activities, often involve substantial amounts and significant exposure to individual issuers and businesses, including non-inves tment grade issuers. In addition, the Firm may originate and/or purchase certain residential and commercial mortgage loans that could contain certain terms and features that may result in additional credit risk as compared with more traditional types of mo rtgages. Such terms and features may include loans made to borrowers subject to payment increases or loans with high loan-to-value ratios. Customer Margin Lending The Firm engages in margin lending to clients that allows the client to borrow against the value of qualifying securities. Margin loans are included within Customer and other receivables in the consolidated balance sheet s. Under these agreements and transactions, the Firm receives collateral, including U.S. government and agency securities, oth er 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 are not committed facilities. Factors considere d 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 overall evaluation of the portfolio to ensure proper diversification or, in the case of concentrated positions, appr opriate 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 tradin g 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 marg in collateral from customers, if appropriate, and, if necessary, may sell securities that have not been paid for or purchase securities sold but not delivered from customers. At December 31, 2016 and December 31, 2015 , the amounts related to margin le nding were approximately $ 24.4 billion and $ 25.3 billion, respectively. Other secured financings include the liabilities related to transfers of financial assets that are accounted for as financings rather than sales, consolidate d VIEs where the Firm is deemed to be the primary beneficiary, and certain equity-linked notes (“ELN”) and other secured borrowings. These liabilities are generally payable from the cash flows of the related assets accounted for as Trading assets (see Notes 11 and 13). Cash and Securities Deposited with Clearing Organizations or Segregated $ in millions At December 31, 2016 At December 31, 2015 Securities 1 $ 23,756 $ 14,390 Other assets―Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 33,979 31,469 Total $ 57,735 $ 45,859 Securities deposited with clearing organizations or segregated under federal and other regulations or requirements are sourced from Securities purchased under agreements to resell and Trading assets in the consolidated balance sheets. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans and Allowance for Credit Losses | 7. Loans and Allowance for Credit Losses Loans The Firm’s loan portfolio consists of the following: • Corporate . Corporate loans primarily include commercial and industrial lending used for general corporate purposes, working capital and liquidity, event-driven loans and asset-backed lending products. Event-driven loans support client merger, acquisition, recapitalization, or project finance activities. Corporate loans are structured as revolving lines of credit, letter of credit facilities, term loans and bridge loans. Risk factors co nsidered in determining the allowance for corporate loans include the borrower’s financial strength, seniority of the loan, collateral type, volatility of collateral value, debt cushion, covenants and counterparty type. • Consumer . Consumer loans inc lude unsecured loans and securities-based lending that allows clients to borrow money against the value of qualifying securities for any suitable purpose other than purchasing, trading, or carrying securities or refinancing margin debt. The majority of con sumer loans are structured as revolving lines of credit and letter of credit facilities and are primarily offered through the Firm’s Portfolio Loan Account (“PLA”) and Liquidity Access Line (“LAL”) programs. The allowance methodology for unsecured loans co nsiders 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 re stricted stock). • Residential Real Estate . Residential real estate loans mainly include non-conforming loans and home equity lines of credit. The allowance methodology for non-conforming residential mortgage loans considers several factors, includin g, but not limited to, loan-to-value ratio, FICO score, home price index and delinquency status. The methodology for home equity lines of credit considers credit limits and utilization rates in addition to the factors considered for non-conforming resident ial mortgages. • Wholesale Real Estate . Wholesale real estate loans include owner-occupied loans and income-producing loans. The principal risk factors for determining the allowance for wholesale real estate loans are the underlying collateral type, loan-to-value ratio and debt service ratio. Loans Held for Investment and Held for Sale At December 31, 2016 $ in millions Loans Held for Investment Loans Held for Sale Total Loans 1, 2 Loans by Product Type Corporate loans $ 25,025 $ 10,710 $ 35,735 Consumer loans 24,866 — 24,866 Residential real estate loans 24,385 61 24,446 Wholesale real estate loans 7,702 1,773 9,475 Total loans, gross 81,978 12,544 94,522 Allowance for loan losses (274) — (274) Total loans, net $ 81,704 $ 12,544 $ 94,248 At December 31, 2015 $ in millions Loans Held for Investment Loans Held for Sale Total Loans 1, 2 Loans by Product Type Corporate loans $ 23,554 $ 11,924 $ 35,478 Consumer loans 21,528 — 21,528 Residential real estate loans 20,863 104 20,967 Wholesale real estate loans 6,839 1,172 8,011 Total loans, gross 72,784 13,200 85,984 Allowance for loan losses (225) — (225) Total loans, net $ 72,559 $ 13,200 $ 85,759 Amounts include loans that are made to non-U.S. borrowers of $ 9 , 388 million and $ 9,789 million at December 31, 2016 and December 31, 2015 , respectively. Loans at fixed interest rates and floating or adjustable interest rates were $ 11,895 million and $ 82,353 million at December 31, 2016 , respectively, and $ 8 , 471 million and $ 77,288 million, at December 31, 2015 , respectively . See Note 3 for further information regarding Loans and lending commitments held at fair value. Credit Quality The Credit Risk Management Department evaluates new obligors before credit transactions are initially approved and at least annually thereafter for corporate and wholesale real estate loans. For corporate loans, credit evaluations typically involve the evaluation of financial statements; assessment of leverage, liquidity, capital strength, asset composition and quality; market capitaliz ation and access to capital markets; cash flow projections and debt service requirements; and the adequacy of collateral, if applicable. The Credit Risk Management Department also evaluates strategy, market position, industry dynamics, obligor’s management and other factors that could affect an obligor’s risk profile. For wholesale real estate loans, the credit evaluation is focused on property and transaction metrics, including property type, loan-to-value ratio, occupancy levels, debt service ratio, preva iling 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 a nd 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 indicator s, which are consistent with U.S. banking regulators’ definitions of criticized exposures, in its credit monitoring process for loans held for investment: • Pass . A credit exposure rated pass has a continued expectation of timely repayment, all obli gations 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 unc orrected, 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 def ault 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 circumst ances, 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 reg ularly reviewed for impairment. When a loan is impaired, the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, the observable market price of the l oan or the fair value of the collateral if the loan is collateral dependent. For further information, see Note 2. Loans Held for Investment before Allowance by Credit Quality At December 31, 2016 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 23,409 $ 24,853 $ 24,345 $ 7,294 $ 79,901 Special mention 288 13 — 218 519 Substandard 1,259 — 40 190 1,489 Doubtful 69 — — — 69 Loss — — — — — Total loans $ 25,025 $ 24,866 $ 24,385 $ 7,702 $ 81,978 At December 31, 2015 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 22,040 $ 21,528 $ 20,828 $ 6,839 $ 71,235 Special mention 300 — — — 300 Substandard 1,202 — 35 — 1,237 Doubtful 12 — — — 12 Loss — — — — — Total loans $ 23,554 $ 21,528 $ 20,863 $ 6,839 $ 72,784 Impaired Loans Before Allowance by Product Type At December 31, 2016 $ in millions Corporate Residential Real Estate Total Impaired loans with allowance $ 104 $ — $ 104 Impaired loans without allowance 1 206 35 241 Impaired loans unpaid principal balance 2 316 38 354 At December 31, 2015 $ in millions Corporate Residential Real Estate Total Impaired loans with allowance $ 39 $ — $ 39 Impaired loans without allowance 1 89 17 106 Impaired loans unpaid principal balance 2 130 19 149 At December 31, 2016 and December 31, 2015 , no allowance was recorded for these loans as the present value of the expected future cash flows (or, alternatively, the observable market price of the loan or the fair value of the collateral held) equaled or exceeded the carrying value. The impaired loans unpaid principal balance differs from the aggregate amount of impaired loan balances with and witho ut allowance due to various factors, including charge-offs and net deferred loan fees or costs. Select Loan Information by Region At December 31, 2016 $ in millions Americas EMEA Asia-Pacific Total Impaired loans $ 320 $ 9 $ 16 $ 345 Allowance for loan losses 245 28 1 274 At December 31, 2015 $ in millions Americas EMEA Asia-Pacific Total Impaired loans $ 108 $ 12 $ 25 $ 145 Allowance for loan losses 183 34 8 225 EMEA—Europe, Middle East and Africa Allowance for Credit Losses on Lending Activities Allowance for Loan Losses Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Rollforward Balance at December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Gross charge-offs (16) — (1) — (17) Gross recoveries 3 — — — 3 Net recoveries/(charge-offs) (13) — (1) — (14) Provision for (release of) loan losses 110 (1) 4 18 131 Other 1 (68) — — — (68) Balance at December 31, 2016 $ 195 $ 4 $ 20 $ 55 $ 274 Allowance by Impairment Methodology Inherent $ 133 $ 4 $ 20 $ 55 $ 212 Specific 62 — — — 62 Total allowance at December 31, 2016 $ 195 $ 4 $ 20 $ 55 $ 274 Loans by Impairment Methodology 2 Inherent $ 24,715 $ 24,866 $ 24,350 $ 7,702 $ 81,633 Specific 310 — 35 — 345 Total loans at December 31, 2016 $ 25,025 $ 24,866 $ 24,385 $ 7,702 $ 81,978 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Rollforward Balance at December 31, 2014 $ 118 $ 2 $ 8 $ 21 $ 149 Gross charge-offs — — (1) — (1) Gross recoveries 1 — — — 1 Net recoveries/(charge-offs) 1 — (1) — — Provision for loan losses 58 3 10 16 87 Other (11) — — — (11) Balance at December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Allowance by Impairment Methodology Inherent $ 156 $ 5 $ 17 $ 37 $ 215 Specific 10 — — — 10 Total allowance at December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Loans by Impairment Methodology 2 Inherent $ 23,426 $ 21,528 $ 20,846 $ 6,839 $ 72,639 Specific 128 — 17 — 145 Total loans at December 31, 2015 $ 23,554 $ 21,528 $ 20,863 $ 6,839 $ 72,784 Allowance for Lending Commitments Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Rollforward Balance at December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Provision for lending commitments 13 — — — 13 Other (8) — — — (8) Balance at December 31, 2016 $ 185 $ 1 $ — $ 4 $ 190 Allowance by Impairment Methodology Inherent $ 185 $ 1 $ — $ 4 $ 190 Specific — — — — — Total allowance at December 31, 2016 $ 185 $ 1 $ — $ 4 $ 190 Lending Commitments by Impairment Methodology 2 Inherent $ 63,078 $ 6,031 $ 322 $ 527 $ 69,958 Specific 89 — — — 89 Total lending commitments at December 31, 2016 $ 63,167 $ 6,031 $ 322 $ 527 $ 70,047 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Rollforward Balance at December 31, 2014 $ 147 $ — $ — $ 2 $ 149 Provision for lending commitments 33 1 — 2 36 Balance at December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Allowance by Impairment Methodology Inherent $ 173 $ 1 $ — $ 4 $ 178 Specific 7 — — — 7 Total allowance at December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Lending Commitments by Impairment Methodology 2 Inherent $ 63,873 $ 4,856 $ 312 $ 381 $ 69,422 Specific 126 — — — 126 Total lending commitments at December 31, 2015 $ 63,999 $ 4,856 $ 312 $ 381 $ 69,548 Reduction related to loans of $ 492 million that were transferred to loans held for sale during 2016 . Loan balances are gross of the allowance for loan losses, and lending commitments are gross of the allowance for lending commitments. Troubled Debt Restructurings At December 31, 2016 and December 31, 2015 , the impaired loans and lending commitments classified as held for investment include troubled debt restructurings of $ 67.4 million and $ 44.0 million related to loans, respectively, and $ 13.9 million and $ 34.8 million related to lending commitments, respectively, within corporate loans. At December 31, 2016 the Firm did not record an allowance related to these troubled debt restructurings. At December 31, 2015 , an allowance of $ 5.1 mi llion was recorded. These restructurings typically include modifications of interest rates, collateral requirements, other loan covenants and payment extensions. Employee Loans Employee loans are granted in conjunction with a program established in the Wealth Management business segment to retain and recruit certain employees. These loans are recorded in Customer and other receivables in the consolidated balance sheets. These loans are full recourse, generally require periodic payments and have repayment terms ranging from 1 to 12 years. The Firm establishes an allowance for loan amounts it does not consider recoverable, which is recorded in C ompensation and benefits expense. At December 31, 2016 , the Firm had $ 4,715 million of employee loans, net of an allowance of approximately $ 89 million. At December 31, 2015 , the Firm had $ 4,923 million of employee loans, net of a n allowance of approximately $ 108 million. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures | |
Equity Method Investments | 8. Equity Method Investments Overview The Firm has investments accounted for under the equity method of accounting (see Note 1) of $ 2,837 million and $ 3,144 million at December 31, 2016 and December 31, 2015 , respectively, included in Other Assets—Other investments in the consolidated balance sheets. Income (loss) from equity method investments was $ (79) million, $ 114 million and $ 156 million for 2016 , 2015 and 2014 , respectively, and is included in Other revenues in the consolidated income stat ements. Ja panese Securities Joint Venture The Firm hold s a 40 % voting interest (“40% interest”) and Mitsubishi UFJ Financial Group, Inc. (“MUFG”) holds a 60 % voting interest in Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“ MUMSS”) . The Firm account s for its equity method investment in MUMSS within the Institutional Securities business segment. During 2016 , 2015 and 2014 , the Firm recorded income from its 40% interest of $ 93 million , $ 220 million and $ 224 million, respectively, within Other revenues in the consolidated income statements. At December 31, 2016 and December 31, 2015 , the book value of this investment was $ 1,581 million and $ 1,457 million, respectively. The b ook value of this investee exceeds the Firm’s share of net assets , reflecting equity method intangible assets and equity method goodwill. Summarized Financial Data for MUMSS At December 31, $ in millions 2016 2015 Total assets $ 120,991 $ 135,398 Total liabilities 117,798 132,492 Noncontrolling interests 29 29 $ in millions 2016 2015 2014 Net revenues $ 2,527 $ 2,961 $ 2,961 Income from continuing operations before income taxes 369 845 908 Net income 246 589 595 Net income applicable to MUMSS 233 565 582 In addition to MUMSS, the Firm held other equity method investments that were not individually significant. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 9. Goodwill and Intangible Assets Goodwill The Firm completed its annual goodwill impairment testing as of July 1, 2016 and July 1, 2015 . The Firm’s impairment testing for each period did not indicate any goodwill impairment as each of the Firm’s reporting units with goodwill had a fair value that was substantially in excess of its carrying value. Goodwill Rollforward $ in millions Institutional Securities Wealth Management Investment Management Total At December 31, 2014 1 $ 286 $ 5,533 $ 769 $ 6,588 Foreign currency and other (15) ─ ─ (15) Acquired 11 ─ ─ 11 At December 31, 2015 1 $ 282 $ 5,533 $ 769 $ 6,584 Foreign currency and other (7) ─ ─ (7) At December 31, 2016 1 $ 275 $ 5,533 $ 769 $ 6,577 1. The amount of the Firm’s goodwill before accumulated impairments of $ 700 million, which included $ 673 million related to the Institutional Securities business segment and $ 27 million related to the Investment Management business segment, was $ 7 , 277 million and $ 7,284 million at December 31, 2016 and December 31, 2015 , respectively. Intangible Assets $ in millions Institutional Securities Wealth Management Investment Management Total Amortizable intangibles $ 327 $ 2,632 $ 20 $ 2,979 Mortgage servicing rights — 5 — 5 At December 31, 2015 $ 327 $ 2,637 $ 20 $ 2,984 Amortizable intangibles $ 346 $ 2,361 $ 11 $ 2,718 Mortgage servicing rights — 3 — 3 At December 31, 2016 $ 346 $ 2,364 $ 11 $ 2,721 Gross Amortizable Intangible Assets by Type At December 31, 2016 At December 31, 2015 $ in millions Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Trademarks $ 1 $ — $ 1 $ — Tradename 283 40 280 31 Customer relationships 4,059 1,939 4,059 1,686 Management contracts 467 275 478 250 Other 329 167 291 163 Total $ 5,139 $ 2,421 $ 5,109 $ 2,130 Amortization expense associated with intangible assets is estimated to be approximately $ 298 million per year over the next five years. Net Amortizable Intangible Assets Rollforward $ in millions Institutional Securities Wealth Management Investment Management Total At December 31, 2014 $ 221 $ 2,905 $ 27 $ 3,153 Acquired 1 160 — — 160 Amortization expense (26) (273) (7) (306) Other (28) — — (28) At December 31, 2015 $ 327 $ 2,632 $ 20 $ 2,979 Acquired 43 — — 43 Disposals (11) — — (11) Amortization expense (11) (271) (9) (291) Impairment losses (2) — — (2) At December 31, 2016 $ 346 $ 2,361 $ 11 $ 2,718 Includes a $ 159 million net increase in Intangible assets related to a Commodities division transaction, which also resulted in a gain of $ 78 million recorded in Other revenues in the consolidated income statement s . |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | 10. De posi ts Deposits At December 31, At December 31, $ in millions 2016 1 2015 1 Savings and demand deposits $ 154,559 $ 153,346 Time deposits 2 1,304 2,688 Total 3 $ 155,863 $ 156,034 1. Total deposits subject to FDIC insurance at December 31, 2016 and December 31, 2015 were $128 billion and $113 billion, respectively. Of the total time deposits subject to FDIC insurance at December 31, 2016 and December 31, 2015, $46 million and $14 million, respectively, met or exceeded the FDIC insurance limit. 2. Certain time deposit accounts are carried at fair value under the fair value option (see Note 3). 3. Deposits were primarily held in the U.S. Interest bearing deposits at December 31, 2016 included $ 154,529 million of savings deposits payable upon demand and $ 1,204 million of time deposits maturing in 2017 and $ 43 million of time deposits maturing in 2018 . The vast majority of deposits in MSBNA and MSPBNA (collectively, “U.S. Bank Subsidiaries”) are sourced from the Firm’s retail brokerage accounts. |
Borrowings and Other Secured Fi
Borrowings and Other Secured Financings | 12 Months Ended |
Dec. 31, 2016 | |
Borrowings and Other Secured Financings | |
Long-Term Borrowings and Other Secured Financings | 11. Borrowings and Other Secured Financings Short-Term Borrowings At December 31, 2016 and December 31, 2015, the Firm had $ 941 million and $ 2,173 million, respectively, of Short-term borrowings. These borrowings included primarily structured notes, bank loans and bank notes with original maturities of 12 months or less. Certain structured short-term borrowings are carried at fair value under the fair value option (see Note 3). Long-Term Borrowings Maturities and T erms of Long-Term Borrowings Parent Company Subsidiaries At December 31, 2016 3 At December 31, 2015 $ in millions Fixed Rate 1 Variable Rate 2 Fixed Rate 1 Variable Rate 2 Due in 2016 $ — $ — $ — $ — $ — $ 22,396 Due in 2017 14,120 7,369 16 4,622 26,127 22,266 Due in 2018 12,942 4,698 13 1,639 19,292 17,937 Due in 2019 13,049 8,340 38 970 22,397 18,568 Due in 2020 11,128 4,570 13 1,025 16,736 17,005 Due in 2021 13,614 2,044 17 1,504 17,179 9,142 Thereafter 43,076 15,385 244 4,339 63,044 46,454 Total $ 107,929 $ 42,406 $ 341 $ 14,099 $ 164,775 $ 153,768 Weighted average coupon at period-end 4 4.1% 1.4% 6.0% N/M 3.7% 4.0% N/M—Not Meaningful 1. Amounts include an increase of approximately $ 1.1 billion at December 31, 2016 to the carrying amount of certain of the long-term borrowings associated with fair value hedges. The increase to the carrying value associated with fair value hedges by year due was approximately $ 0.2 billion due in 2017, $ 0.2 billion due in 2018, $ 0.3 billion due in 2019, $ 0.3 billion due in 2020, $ 0.2 billion due in 202 1 and ( $ 0. 1 ) billion due thereafter. 2 . Variable rate borrowings bear interest b ased on a variety of money market indices, including LIBOR and federal funds rates. Amounts include borrowings that are linked to equity, credit, commodity or ot her ind ices . 3. A mounts include a decrease of approximately $ 0.7 billion at December 31, 2016 to the carrying amounts of certain of the long-term borrowings for which the fair value option was elected (see Note 3). 4. Weighted average coupon was calculated utilizing U.S. and non-U.S. dollar interest rates and excludes financial instruments for which the fair value option was elected. Virtually all of the variable rate notes issued by subsidiaries are carried at fair value so a weighted average coupon is not meaningful. Long-Term Borrowings by Type $ in millions At December 31, 2016 At December 31, 2015 Senior debt $ 154,472 $ 140,494 Subordinated debt 10,303 10,404 Junior subordinated debentures — 2,870 Total $ 164,775 $ 153,768 During 2016 and 2015 , the Firm issued notes with a principal amount of approximately $ 43.6 billion and $ 34.2 billion, respectively, and approximately $ 30.4 billion and $ 27.3 billion, respectively, in aggregate long-term borrowings matured or retired. 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 ot her 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. Debt containing provisions that effectively allow the holders to put the not es aggregated $ 3,156 million at December 31, 2016 and $ 2,902 million at December 31, 2015 . In addition, in certain circumstances, certain purchasers may be entitled to cause the repurchase of the notes. The aggregated value of notes subject to these arrangements was $ 1,117 million at December 31, 2016 and $ 650 million at December 31, 2015 . Subordinated debt and junior subordinated debentures generally are issued to meet the capital requirements of the Firm or its regulated subsidiaries and prima rily are U.S. dollar denominated. The weighted average maturity of long-term borrowings, based upon stated maturity dates, was approximately 5.9 years and 6.1 years at December 31, 2016 and December 31, 2015, respectively. Trust Preferred Securities During 2016, Morgan Stanley Capital Trust III, Morgan Stanley Capital Trust IV, Morgan Stanley Capital Trust V and Morgan Stanley Capital Trust VIII redeemed all of their issued and outstanding Capital Securities pursuant to the optional redemption provisi ons provided in the respective governing documents. In the aggregate, $ 2.8 billion was redeemed. The Firm concurrently redeemed the related underlying junior subordinated debentures. During 2015, Morgan Stanley Capital Trusts VI and VII redeemed all of their issued and outstanding 6.60% Capital Securities, respectively, and the Firm concurrently redeemed the related underlying junior subordinated debentures. Senior Debt—Structure d Borrowings The Firm’s index-linked, equity-linked or credit-linked borrowings include various structured instruments whose payments and redemption values are linked to the performance of a specific index ( e.g., Standard & Poor’s 500), a basket of st ocks, a specific equity security, a credit exposure or basket of credit exposures. 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 floa ting rates based upon LIBOR. The Firm generally carries the entire structured borrowings at fair value. The swaps and purchased options used to economically hedge the embedded features are derivatives and also are carried at fair value. Changes in fair val ue related to the notes and economic hedges are reported in Trading revenues. See Note 3 for further information on structured borrowings. Subordinated Debt Subordinated notes i ncluded in long-term borrowings have a contractual weighted average c oupon of 4.5 % at both December 31, 2016 and December 31, 2015 . Maturities of subordinated notes range from 2022 to 2027. Asset and Liability Management In general, other than securities inventories 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 affected its effective average borrowing rate. Rate s for Long-Term Borrowings at Period End 2016 2015 2014 Weighted average coupon 1 3.7% 4.0% 4.2% Effective average after swaps 1 2.5% 2.1% 2.3% 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. Other S ecured Financings Other secured financings include the liabilities related to transfers of financial assets that are accounted for as financings rather than sales, consolidated VIEs wher e the Firm is deemed to be the primary beneficiary, pledged commodities, certain equity-linked notes and other secured borrowings. See Note 13 for further information on other secured financings related to VIEs and securitization activities. Other Secured Financings by Type $ in millions At December 31, 2016 At December 31, 2015 Secured Financings Original maturities greater than one year $ 9,404 $ 7,629 Original maturities one year or less 1 1,429 1,435 Failed sales 2 285 400 Total $ 11,118 $ 9,464 1. Amounts include approximately $ 1 , 389 million of variable rate financings and approximately $ 40 million in fixed rate financings at December 31, 201 6 and approximately $ 1, 401 million of variable rate financings and approximately $ 34 million in fixed rate financings at December 31, 201 5 . 2. For more information on failed sales, see Note 13. Secured Financings with Original Maturities Greater than One Year by Maturity and Rate Type At December 31, 2016 At December 31, 2015 $ in millions Fixed Rate Variable Rate 1 Total Due in 2016 $ — $ — $ — $ 2,333 Due in 2017 86 3,291 3,377 2,122 Due in 2018 — 2,738 2,738 1,553 Due in 2019 1 2,812 2,813 1,148 Due in 2020 58 212 270 142 Due in 2021 — — — — Thereafter 94 112 206 331 Total $ 239 $ 9,165 $ 9,404 $ 7,629 Weighted average coupon rate at period-end 2 2.5% 1.0% 1.0% 1.2% 1. Variable rate borrowings bear interest based on a variety of indices, including LIBOR. Amounts include borrowings that are equity-linked, credit-linked, commodity-linked or linked to some other index. 2. Weighted average coupon was calculated utilizing U.S. and non-U.S. dollar interest rates and excludes secured financings that are linked to non-interest indices and for which fair value option was elected. Failed Sales by Maturity $ in millions At December 31, 2016 At December 31, 2015 Due in 2016 $ — $ 69 Due in 2017 112 168 Due in 2018 17 1 Due in 2019 53 54 Due in 2020 55 104 Due in 2021 28 — Thereafter 20 4 Total $ 285 $ 400 For more information on failed sales , see Note 13 . |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments, Guarantees and Contingencies [Abstract] | |
Commitments, Guarantees and Contingencies | 12. Commitments, Guarantees and Contingencies Commitments The Firm’s commitments are summarized in the following table by years to maturity. Since commitments associated with these instruments may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. Commitments Years to Maturity at December 31, 2016 Less $ in millions than 1 1-3 3-5 Over 5 Total Letters of credit and other financial guarantees $ 83 $ — $ 1 $ 39 $ 123 Investment activities 517 132 13 246 908 Corporate lending 1 15,156 24,144 47,725 4,421 91,446 Consumer lending 6,024 3 — 4 6,031 Residential real estate lending 88 10 100 220 418 Wholesale real estate lending 79 368 32 68 547 Forward-starting secured financing receivables 2 71,194 — — — 71,194 Underwriting 1,845 — — — 1,845 Total $ 94,986 $ 24,657 $ 47,871 $ 4,998 $ 172,512 1. Due to the nature of the Firm’s obligations under the commitments, these amounts include certain commitments participated to third parties of $ 5.6 billion. 2. Represents forward-starting securities purchased under agreements to resell and securities borrowed agreements of which $ 68.8 billion settled within three business days. Types of Commitments 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 borrowed and to satisfy various margin requirements in lieu of deposi ting cash or securities with these counterparties. 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’s employees, including its senior officers as well as the Firm’s Board of Directors (the “Board”), may participate on the same terms and conditions as other investors in certain of these funds that the Firm sponsors primarily for client investment, except that the Firm may waive or lower applicable fees and charges for its employees. The Firm has contractu al capital commitments, guarantees and counterparty arrangements with respect to these investment management funds. Lending Commitments . Lending commitments represent the notional amount of legally binding obligations to provide funding to clients for different types of loan transactions. For syndications led by the 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 t he 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 th e commitments, these amounts include certain commitments participated to third parties. See Note 7 for further information. Forward-Starting Secured Financing Receivables . The Firm has entered into forward-starting securities pu rchased under agreements to resell and securities borrowed (agreements that have a trade date at or prior to December 31, 2016 and settle subsequent to period-end) that are primarily secured by collateral from U.S. government agency securities and other sovereign government obl igations. Underwriting Commitments . The Firm provides underwriting commitments in connection with its capital raising sources to a diverse group of corporate and other institutional clients. Premises and Equipment . The Firm has non-cancelable operat ing leases covering premises and equipment. At December 31, 2016 , future minimum rental commitments under such leases (net of sublease commitments, principally on office rentals) were as follows: Operating Premises Leases At December 31, $ in millions 2016 2017 $ 649 2018 627 2019 549 2020 505 2021 444 Thereafter 2,958 Total $ 5,732 The total of minimum rental income to be received in the future under non-cancelable operating subleases at December 31, 2016 was $ 22 million. Occupancy lease agreements, in addition to base rentals, generally provide for rent and operating expense escalations resulting from increased assessments for real estate taxes and other charges. Total rent expense was $ 689 million, $ 705 million and $ 715 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Guarantees Obligations under Guarantee Arrangements at December 31, 2016 Maximum Potential Payout/Notional Carrying Amount (Asset)/ Liability Collateral/ Recourse Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Credit derivatives 1 $ 166,685 $ 140,987 $ 91,784 $ 30,274 $ 429,730 $ (1,049) $ — Other credit contracts 49 6 — 215 270 — — Non-credit derivatives 1 1,466,131 779,057 325,616 541,369 3,112,173 55,476 — Standby letters of credit and other financial guarantees issued 2 1,052 753 1,472 5,611 8,888 (164) 7,009 Market value guarantees 38 133 71 8 250 2 4 Liquidity facilities 2,812 — — — 2,812 (5) 4,854 Whole loan sales guarantees — — 2 23,321 23,323 8 — Securitization representations and warranties — — — 59,704 59,704 103 — General partner guarantees 3 30 124 237 394 44 — 1. Carrying amounts of derivative contracts are shown on a gross basis prior to cash collateral or counterparty netting. For further information on derivative contracts, see Note 4. 2. These amounts include certain issued standby letters of credit participated to third parties totaling $ 0.9 billion due to the nature of the Firm’s obligations under these arrangements. The Firm has obligations under certain guarantee arrangements, including contracts and indemnification agreements , that contingently require the Firm to make payments to the guaranteed party based on changes in an underlying measure (such as an interest or foreign exchange rate, secur ity or commodity price, an index, or the occurrence or non-occurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. Al so included as guarantees are contracts that contingently require the Firm to make payments to the guaranteed party based on another entity’s failure to perform under an agreement, as well as indirect guarantees of the indebtedness of others. Types of Gu arantees Derivative Contracts . Certain derivative contracts meet the accounting definition of a guarantee, including certain written options, contingent forward contracts and credit default swaps (see Note 4 regarding credit derivatives in which t he Firm has sold credit protection to the counterparty). The Firm has disclosed information regarding all derivative contracts that could meet the accounting definition of a guarantee and has used the notional amount as the maximum potential payout for cer tain derivative contracts, such as written interest rate caps and written foreign currency options. 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 deri vative contract. The Firm records derivative contracts at fair value. Aggregate market risk limits have been established, and market risk measures are routinely monitored against these limits. The Firm also manages its exposure to these derivative contr acts through a variety of risk mitigation strategies, including, but not limited to, entering into offsetting economic hedge positions. The Firm believes that the notional amounts of the derivative contracts generally overstate its exposure. Standby Let ters 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 represe nt 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. Market Value Guarantees . Market value guarantees are issued to guarantee timely payment of a specified return to investors in certain affordable housing tax credit funds. These guarantees are designed to return an investor’s contribution to a fund and the investor’s share of tax losses and tax credits expected to be generated by a fund. From time to time, the Firm may also guarantee return of principal invested, potentially including a specified rate of return, to fund invest ors. Liquidity Facilities . The Firm has entered into liquidity facilities with special purpose entities (“SPEs”) and other counterparties, whereby the Firm is required to make certain payments if losses or defaults occur. Primarily, the Firm acts as li quidity 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 p urchase 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 th e trust sponsors. Primarily 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 other wise 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 maximum potential payout related to such representations and warranties is equal to the current unpaid principal balance (“UPB”) of such loans. The Firm has information on the current UPB only when it services the loans. T he amount included in the previous table for the maximum potential payout of $ 23.3 billion includes the current UPB when known of $ 4.4 billion and the UPB at the time of sale of $ 18.9 billion when the current UPB is not known. The UPB at the time of the sa le of all loans covered by these representations and warranties was approximately $ 42.7 billion. The related liability primarily relates to sales of loans to the federal mortgage agencies. Securitization Representations and Warranties . As part of the Firm’s Institutional Securities business segment’s securitization and related activities, the Firm has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization transactions s ponsored 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 such assets or make other payments related to such assets i f 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 where known and the UPB at the time of sale when the current UPB is not known. At December 31, 2016, there were approximately $ 147.9 billion of outstanding RMBS primarily containing U.S. residential loans that the Firm had sponsored between 2004 and 2016. Of that amount, the Firm made representations and warranties relating to approximately $ 47.0 billion of loans an d agreed to be responsible for the representations and warranties made by third-party sellers, many of which are now insolvent, on approximately $ 21.0 billion of loans. At December 31, 2016 , the Firm had reserved $ 103 million in its consolidated financia l statements for payments owed as a result of breach of representations and warranties made in connection with these residential mortgages. At December 31, 2016 , the current UPB for all the residential assets subject to such representations and warrantie s was approximately $ 11.6 billion, and the cumulative losses associated with U.S. RMBS were approximately $ 15.2 billion. The Firm did not make, or otherwise agree to be responsible for, the representations and warranties made by third-party sellers on appr oximately $ 79.9 billion of residential loans that it securitized during that time period. The Firm also made representations and warranties in connection with its role as an originator of certain commercial mortgage loans that it securitized in CMBS. At December 31, 2016, there were outstanding Firm sponsored CMBS in which the Firm had originated and placed between 2004 and 2016, U.S. and non-U.S. commercial mortgage loans of approximately $ 37.3 billion and $ 6.2 billion, respectively. At December 31, 2016 , the Firm had not accrued any amounts in the consolidated financial statements for payments owed as a result of breach of representations and warranties made in connection with these commercial mortgages. At December 31, 2016 , the current UPB for all U.S. commercial mortgage loans subject to such representations and warranties was $ 31.7 billion. For the non-U.S. commercial mortgage loans, the amount included in the previous table for the maximum potential payout includes the current UPB when known of $ 0.8 billion and the UPB at the time of sale of $ 0.4 billion 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 relat ed to achieving certain return hurdles 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 r eturn as specified in the various partnership agreements, subject to certain limitations. Other Guarantees and Indemnities In the normal course of business, the Firm provides guarantees and indemnifications in a variety of transactions. These provisio ns generally are standard contractual terms. Certain of these guarantees and indemnifications related to indemnities, exchange/clearinghouse member guarantees and merger and acquisition guarantees are described 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 oth er 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 U.S. and non-U.S. 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 cleari nghouse 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 clearin ghouse 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 mem bers 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 resource s 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 consolidated financial statements for these agreements and believes that any po tential 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 Europea n 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 requ ired 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 ge nerally 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 with its role as investment banking advisor. In addition, in the ordinary course of busines s, the Firm guarantees the debt and/or certain trading obligations (including obligations associated with derivatives, foreign exchange contracts and the settlement of physical commodities) of certain subsidiaries. These guarantees generally are entity or product specific and are required by investors or trading counterparties. The activities of the Firm’s subsidiaries covered by these guarantees (including any related debt or trading obligations) are included in the consolidated financial statements. Con tingencies Legal . In the normal course of business, the Firm has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with its activities as a global d iversified 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 otherwis e be the primary defendants in such cases are bankrupt or are in financial distress. These actions have included, but are not limited to, residential mortgage and credit-crisis related matters. Over the last several years, the level of litigation and investigatory activity (both formal and informal) by governmental and self-regulatory agencies has increased materially in the financial services industry. As a result, the Firm expects that it will continue to be the subject of elevated claims for damages and other relief and, while the Firm has identified below any individual proceedings where the Firm believes a material loss to be reasonably possible and reasonably estimable, there can be no assur ance 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 consolidated financial statements and the Firm can reasonably estimate the amount of that loss, the Firm accrues the estimated l oss by a charge to income. The Firm incurred legal expenses of $ 263 million in 2016, $ 563 million in 2015 and $ 3,364 million in 2014. The Firm’s future legal expenses may fluctuate from period to period, given the current environment regarding government i nvestigations 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 plai ntiffs or governmental entities seek substantial or indeterminate damages, restitution, disgorgement or penalties. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, dete rmination 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 addi tional loss in excess of amounts accrued, but does not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on the Firm’s consolidated financial statements as a whole, other than the matters referred to in the following paragraphs. On July 15, 2010, China Development Industrial Bank (“CDIB”) filed a complaint against the Firm, styled China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al ., which is pending in t he Supreme Court of the State of New York, New York County (“Supreme Court of NY”). The complaint relates to a $275 million credit default swap referencing the super senior portion of the STACK 2006-1 CDO. The complaint asserts claims for common law fraud, fraudulent inducement and fraudulent concealment and alleges that the Firm misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that the Firm knew that the assets backing the CDO were of poor quality when it entered into the credit default swap w ith CDIB. The complaint seeks compensatory damages related to the approximately $228 million that CDIB alleges it has already lost under the credit default swap, rescission of CDIB’s obligation to pay an additional $12 million, punitive damages, equitable relief, fees and costs. On February 28, 2011, the court denied the Firm’s motion to dismiss the complaint. Based on currently available information, the Firm believes it could incur a loss in this action of up to approximately $240 million plus pre- and po st-judgment interest, fees and costs. On August 7, 2012, U.S. Bank, in its capacity as trustee, filed a complaint on behalf of Morgan Stanley Mortgage Loan Trust 2006-4SL and Mortgage Pass-Through Certificates, Series 2006-4SL against the Firm styled Mo rgan Stanley Mortgage Loan Trust 2006-4SL, et al. v. Morgan Stanley Mortgage Capital Inc. , pending in the Supreme Court of NY. The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an or iginal principal balance of approximately $303 million, breached various representations and warranties. The complaint seeks, among other relief, rescission of the mortgage loan purchase agreement underlying the transaction, specific performance and unspec ified damages and interest. On August 8, 2014, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. On December 2, 2016, the Firm moved for summary judgment and the plaintiff moved for partial summary judgment. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $149 million, the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands that it did not repurch ase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On August 8, 2012, U.S. Bank, in its capacity as trustee, filed a complaint on beha lf of Morgan Stanley Mortgage Loan Trust 2006-14SL, Mortgage Pass-Through Certificates, Series 2006-14SL, Morgan Stanley Mortgage Loan Trust 2007-4SL and Mortgage Pass-Through Certificates, Series 2007-4SL against the Firm styled Morgan Stanley Mortgage Lo an Trust 2006-14SL, et al. v. Morgan Stanley Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc ., pending in the Supreme Court of NY. The complaint asserts claims for breach of contract and alleges, among other t hings, that the loans in the trusts, which had original principal balances of approximately $354 million and $305 million respectively, breached various representations and warranties. The complaint seeks, among other relief, rescission of the mortgage loa n purchase agreements underlying the transactions, specific performance and unspecified damages and interest. On August 16, 2013, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. On August 16, 2016, the Firm moved for summary judgment and the plaintiffs moved for partial summary judgment. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $527 million, the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands that it did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On September 28, 2012, U.S. Bank, in its capacity as trustee, filed a complaint on behalf of Morgan Stanley Mortgage Loan Trust 2006-13ARX against the Firm styled Morgan Stanley Mortgage Loan Trust 2006-13ARX v. Morgan Stanley Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc., pending in the Supreme Court of NY. The plaintiff filed an amended complaint on January 17, 2013, which asserts claims for breach of contract and alleges, among other things, that the l oans in the trust, which had an original principal balance of approximately $609 million, breached various representations and warranties. The amended complaint seeks, among other relief, declaratory judgment relief, specific performance and unspecified da mages and interest. By order dated September 30, 2014, the court granted in part and denied in part the Firm’s motion to dismiss the amended complaint, which plaintiff appealed. On August 11, 2016, the Appellate Division, First Department reversed in part the trial court’s order that granted the Firm’s motion to dismiss. On December 13, 2016, the Appellate Division granted the Firm’s motion for leave to appeal to the New York Court of Appeals. The Firm filed its opening letter brief with the Court of Appeal s on February 6, 2017. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $170 million, the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands that it did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On January 10, 2013, U.S. Bank, in its capacity as trustee, filed a complaint on behalf of Morgan Stanley Mortgage Loan Trust 2006-10SL and Mortgage Pass-Through Certificates, Series 2006-10SL against the Firm styled Morgan Stanley Mortgage Loan Trust 2006-10SL, et al. v. Morgan Stanley Mortgage Capital Ho ldings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc. , pending in the Supreme Court of NY. The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original princi pal balance of approximately $300 million, breached various representations and warranties. The complaint seeks, among other relief, an order requiring the Firm to comply with the loan breach remedy procedures in the transaction documents, unspecified dama ges, and interest. On August 8, 2014, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $197 million, the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands that it did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at iss ue and the possible range of loss could increase. On May 3, 2013, plaintiffs in Deutsche Zentral-Genossenschaftsbank AG et al. v. Morgan Stanley et al. filed a complaint against the Firm, certain affiliates, and other defendants in the Supreme Court of NY. The complaint alleges that defendants made material misrepresentations and omissions in the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of cert ificates allegedly sponsored, underwritten and/or sold by the Firm to plaintiff was approximately $644 million. The complaint alleges causes of action against the Firm for common law fraud, fraudulent concealment, aiding and abetting fraud, negligent misre presentation, and rescission and seeks, among other things, compensatory and punitive damages. On June 10, 2014, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. The Firm perfected its appeal from that decision on Ju ne 12, 2015. At December 25, 2016, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $247 million, and the certificates had incurred actual losses of approximately $86 million. Based on currently available information, the Firm believes it could incur a loss in this action up to the difference between the $247 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the F irm, or upon sale, plus pre- and post-judgment interest, fees and costs. The Firm may be entitled to be indemnified for some of these losses. On July 8, 2013, U.S. Bank National Association, in its capacity as trustee, filed a complaint against the Firm styled U.S. Bank National Association, solely in its capacity as Trustee of the Morgan Stanley Mortgage Loan Trust 2007-2AX (MSM 2007-2AX) v. Morgan Stanley Mortgage Capital Holdings LLC, as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc. and GreenPoint Mortgage Fundin g, Inc. , 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 August 22, 2013, the Firm filed a motion to dismiss the complaint, which was granted in part and denied in part on November 24, 2014. Based on currently ava |
Variable Interest Entities and
Variable Interest Entities and Securitization Activities | 12 Months Ended |
Dec. 31, 2016 | |
Securitization Activities and Variable Interest Entities [Abstract] | |
Variable Interest Entity Disclosures | 13. 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 se curitization 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 o ther 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 o ther 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 significa nt 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 se rvicer 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 con solidates only those VIEs for which it holds a potentially significant interest of the VIE. The structure of securitization vehicles and CDOs is driven by several parties, including loan seller(s) in securitization transactions, the collateral manager i n a CDO, one or more rating agencies, a financial guarantor in some transactions and the underwriter(s) of the transactions, that serve to reflect specific investor demand. In addition, subordinate investors, such as the “B-piece” buyer ( i.e., investors in most subordinated bond classes) in commercial mortgage-backed securitizations or equity investors in CDOs, can influence whether specific loans are excluded from a CMBS transaction or investment criteria in a CDO. For many transactions, such as re-securi tization 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 t ermination of the transaction. Based upon factors, which include an analysis of the nature of the assets, including whether the assets were issued in a transaction sponsored by the Firm and the extent of the information available to the Firm and to investo rs, 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 Fi rm and by other investors, 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. The Firm focused its control decision on any right held by the Firm or inve stors related to the termination of the VIE. Most re-securitization transactions, CLNs and other asset-repackaged notes have no such termination rights. Consolidated VIEs Except for consolidated VIEs included in other structured financings and managed real estate partnerships in the tables below, the Firm accounts for the assets held by the entities primarily in Trading assets and the liabilities of the entities in Other secured financings in its consolidated balance sheets. For consolidated VIEs inclu ded in other structured financings, the Firm accounts for the assets held by the entities primarily in Premises, equipment and software costs, and Other assets in its consolidated balance sheets. For consolidated VIEs included in managed real estate partne rships, the Firm accounts for the assets held by the entities primarily in Trading assets in its consolidated balance sheets. Except for consolidated VIEs included in other structured financings, the assets and liabilities are measured at fair value, with changes in fair value reflected in earnings. As part of the Institutional Securities business segment’s securitization and related activities, the Firm has provided, or otherwise agreed to be responsible for, representations and warranties regarding cert ain assets transferred in securitization transactions sponsored by the Firm (see Note 12 ). As a result of adopting the accounting update Amendments to the Consolidation Analysis on January 1, 2016, certain consolidated entities are now considered VIE s and are included in the balances at December 31, 2016. See Note 2 for further information. Assets and Liabilities by Type of Activity At December 31, 2016 At December 31, 2015 $ in millions VIE Assets VIE Liabilities VIE Assets VIE Liabilities Credit-linked notes $ 501 $ — $ 900 $ — Other structured financings 602 10 787 13 Asset-backed securitizations 1 397 283 668 423 Other 2 910 25 245 — Total $ 2,410 $ 318 $ 2,600 $ 436 Asset-backed securitizations include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets. The value of assets is determined based on the fair value of the liabilities of and the interests owned by the Firm in such VIEs because the fair values for the liabilities and interests owned are more observable. Other primarily includes certain operating entities, investment funds and structured transactions. Assets and Liabilities by Balance Sheet Caption At December 31, At December 31, $ in millions 2016 2015 Assets Cash and due from banks $ 74 $ 14 Trading assets at fair value 1,295 1,842 Customer and other receivables 13 3 Goodwill 18 — Intangible assets 177 — Other assets 833 741 Total $ 2,410 $ 2,600 Liabilities Other secured financings at fair value $ 289 $ 431 Other liabilities and accrued expenses 29 5 Total $ 318 $ 436 Consolidated VIE assets and liabilities are presented in the previous tables after intercompany eliminations. The assets owned by many consolidated VIEs cannot be removed unilaterally by the Firm and are not generally available to the Firm. The related liabilities issued by many consolidated VIEs are non-recourse to the Firm. In certain other consolidated VIEs, the Firm either has the unilateral right to remove assets or provide additional recourse through derivatives such as total return swaps, guarante es or other forms of involvement. In general, the Firm ’s exposure to loss in consolidated VIEs is limited to losses that would be absorbed on the VIE’s net assets recognized in its financial statements, net of amounts absorbed by third-party variable int erest holders. At December 31, 2016 and December 31, 2015 , n oncontrol ling interests in the c onsoli dated financial statements related to consolidated VIEs were $ 228 million and $ 37 million, respectively. The Firm also had additional maximum exposure to losses of approximately $ 78 million and $ 72 million at December 31, 2016 and December 31, 2015 , respectively , primarily related to certain derivatives, commitments, guarantees and other forms of involvem ent . Non-c onsolidated VIEs T he following tables include all VIEs in which the Firm has determined that its maximum exposure to loss is greater than specific thresholds or meets certain other criteria and exclude exposure to loss from liabilities due to immateriality . Most of the VIEs included in the following tables a re sponsored by unrelated parties; the Firm ’s involvement generally is the result of its secondary market-making activities, securities held in its Investment securities portfolio (see Note 5) and certain investments in funds. Non-consolidated VIE Assets, Maximum and Carrying Value of Exposure to Loss At December 31, 2016 $ in millions Mortgage and Asset-Backed Securitizations Collateralized Debt Obligations Municipal Tender Option Bonds Other Structured Financings Other VIE assets that the Firm does not consolidate (unpaid principal balance) $ 101,916 $ 11,341 $ 4,857 $ 4,293 $ 39,077 Maximum exposure to loss Debt and equity interests $ 11,243 $ 1,245 $ 50 $ 1,570 $ 4,877 Derivative and other contracts — — 2,812 — 45 Commitments, guarantees and other 684 99 — 187 228 Total $ 11,927 $ 1,344 $ 2,862 $ 1,757 $ 5,150 Carrying value of exposure to loss—Assets Debt and equity interests $ 11,243 $ 1,245 $ 49 $ 1,183 $ 4,877 Derivative and other contracts — — 5 — 18 Total $ 11,243 $ 1,245 $ 54 $ 1,183 $ 4,895 At December 31, 2015 $ in millions Mortgage and Asset-Backed Securitizations Collateralized Debt Obligations Municipal Tender Option Bonds Other Structured Financings Other VIE assets that the Firm does not consolidate (unpaid principal balance) $ 126,872 $ 8,805 $ 4,654 $ 2,201 $ 20,775 Maximum exposure to loss Debt and equity interests $ 13,361 $ 1,259 $ 1 $ 1,129 $ 3,854 Derivative and other contracts — — 2,834 — 67 Commitments, guarantees and other 494 231 — 361 222 Total $ 13,855 $ 1,490 $ 2,835 $ 1,490 $ 4,143 Carrying value of exposure to loss—Assets Debt and equity interests $ 13,361 $ 1,259 $ 1 $ 685 $ 3,854 Derivative and other contracts — — 5 — 13 Total $ 13,361 $ 1,259 $ 6 $ 685 $ 3,867 Non-consolidated VIE Mortgage- and Asset-Backed Securitization Assets At December 31, 2016 At December 31, 2015 Unpaid Principal Balance Debt and Equity Interests Unpaid Principal Balance Debt and Equity Interests $ in millions Residential mortgages $ 4,775 $ 458 $ 13,787 $ 1,012 Commercial mortgages 54,021 2,656 57,313 2,871 U.S. agency collateralized mortgage obligations 14,796 2,758 13,236 2,763 Other consumer or commercial loans 28,324 5,371 42,536 6,715 Total $ 101,916 $ 11,243 $ 126,872 $ 13,361 The Firm’s maximum exposure to loss often differs from the carrying value of the variable interests held by the Firm. The maximum exposure to loss is dependent on the nature of the Firm’s variable interest in the VIEs and is limited to the notional amounts of certain liquidity facilities, other credit support, total return swaps, written put options, and the fair value of certain other derivatives and investments the Firm has made in the VIEs. Liabilities issued by VIEs generally are non-recourse to the Firm. Where notional amounts are utilized in quantifying maximum exposure related to derivatives, such amounts do not reflect fair value write-downs already recorded by the Firm. The Firm’s maximum exposure to loss does not include the offsetting ben efit of any financial instruments that the Firm may utilize to hedge these risks associated with its variable interests. In addition, the Firm’s maximum exposure to loss is not reduced by the amount of collateral held as part of a transaction with the VIE or any party to the VIE directly against a specific exposure to loss. Securitization transactions generally involve VIEs. Primarily as a result of its secondary market-making activities, the Firm owned additional VIE assets mainly issued by securitization SPEs for which the maximum exposure to loss is less than specific thresholds. These additional assets totaled $ 11.7 billion and $ 12.9 billion at December 31, 2016 and December 31, 2015 , respectively. These assets were either reta ined in connection with transfers of assets by the Firm, acquired in connection with secondary market-making activities or held as AFS securities in its Investment securities portfolio (see Note 5) or held as investments in funds. At December 31, 2016 and December 31, 2015 , these assets consisted of securities backed by residential mortgage loans, commercial mortgage loans or other consumer loans, such as credit card receivables, automobile loans and student loans, CDOs or CLOs, and investment fund s. The Firm’s primary risk exposure is to the securities issued by the SPE owned by the Firm, with the risk highest on the most subordinate class of beneficial interests. These assets generally are included in Trading assets—Corporate and other debt, Tradi ng assets—Investments or AFS securities within its Investment securities portfolio and are measured at fair value (see Note 3). The Firm does not provide additional support in these transactions through contractual facilities, such as liquidity faciliti es, guarantees or similar derivatives. The Firm’s maximum exposure to loss generally equals the fair value of the assets owned. Securitization Activities In a securitization transaction, the Firm transfers assets (generally commercial or residential mortgage loans or U.S. agency securities) to an SPE, sells to investors most of the beneficial interests, such as notes or certificates, issued by the SPE, and, in many cases, retains other beneficial interests. In many securitization transactions involving commercial mortgage loans, the Firm transfers a portion of the assets to the SPE with unrelated parties transferring the remaining assets. The purchase of the transferred assets by the SPE is financed through the sale of these interests. In some of these transactions, primarily involving residential mortgage loans in the U.S., the Firm serves as servicer for some or all o f the transferred loans. In many securitizations, particularly involving residential mortgage loans, the Firm also enters into derivative transactions, primarily interest rate swaps or interest rate caps, with the SPE. Although not obligated, the Firm g enerally makes a market in the securities issued by SPEs in these 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 co nsidered to be retained interests, although 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 ca ps, 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 over all exposure. See Note 4 for further information on derivative instruments and hedging activities. Available for Sale Securities In the AFS securities within the Investment securities portfolio, the Firm holds securities issued by VIEs not sponsor ed by the Firm. These securities include government-guaranteed securities issued in transactions sponsored by the federal mortgage agencies and the most senior securities issued by VIEs in which the securities are backed by student loans, automobile loans, commercial mortgage loans or CLOs (see Note 5 ). Municipal Tender Option Bond Trusts In a municipal tender option bond transaction, the Firm, generally on behalf of a client, transfers a municipal bond to a trust. The trust issues short-term securi ties that the Firm, as the remarketing agent, sells to investors. The client 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 some programs, the Firm provides this liquidity facility; in most programs, a third-party provider will provide such liquidity facility. The Firm may purchase short-term securities in its role either as remarketing agent or as liquidity provider. The client can generally terminate the transaction at any time. The liquidity provider can generally terminate 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 suf fered by the liquidity provider upon the sale of the bond are the responsibility of the client. This obligation generally is collateralized. Liquidity facilities provided to municipal tender option bond trusts are classified as derivatives. The Firm consol idates any municipal tender option bond trusts in which it holds the residual interest. Credit Protection Purchased through CLNs In a CLN transaction, the Firm transfers assets (generally high-quality securities or money market investments) to an SPE, enters into a derivative transaction in which the SPE writes protection on an unrelated reference asset or group of assets, through a credit default swap, a total return swap or similar instrument, and sells to investors the securities issued by the SPE. I n some transactions, the Firm may also enter into interest rate or currency swaps with the SPE. Upon the occurrence of a credit event related to the reference asset, the SPE will deliver collateral securities as payment to the Firm. The Firm is generally e xposed to price changes on the collateral securities in the event of a credit event and subsequent sale. These transactions are designed to provide investors with exposure to certain credit risk on the reference asset. In some transactions, the assets and liabilities of the SPE are recognized in the Firm’s consolidated balance sheets. In other transactions, the transfer of the collateral securities is accounted for as a sale of assets, and the SPE is not consolidated. The structure of the transaction determ ines the accounting treatment. The derivatives in CLN transactions consist of total return swaps, credit default swaps or similar contracts in which the Firm has purchased protection on a reference asset or group of assets. Payments by the SPE are coll ateralized. 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. Other Structured Financings The Firm primarily invests in equity 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 equity inter ests entitle the Firm to its 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 A CLO or a CDO is an SPE that purchases a pool of assets, consisting of corporate loans, corporate bonds, asset-backed securities or synthetic exposures on similar assets through derivatives, and issues multiple tranches of debt and equity securities to inv estors. The Firm underwrites the securities issued in 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 sign ificant portion of the total assets purchased. If necessary, the Firm may retain unsold securities issued in these transactions. Although not obligated, the Firm generally makes a market in the securities issued by SPEs in these transactions. These benefic ial interests are included in Trading assets and are measured at fair value. Equity-Linked Notes In an ELN transaction, the Firm typically transfers to an SPE either (1) 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 (2) debt securities issued by other companies and a derivative contract, the terms of which will relate to the performance of a specific equity security, equity index or other index. These transac tions are designed to provide investors with exposure to certain risks related to the specific equity security, equity index or other index. ELN transactions with SPEs were not consolidated at December 31, 2016 and December 31, 2015. Transactions with SPEs in which the Firm, acting as principal, transferred financial assets with continuing involvement and received sales treatment are shown below. Transfers of Assets with Continuing Involvement At December 31, 2016 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other 1 $ in millions SPE assets (unpaid principal balance) 2 $ 19,381 $ 43,104 $ 11,092 $ 11,613 Retained interests (fair value) Investment grade $ — $ 22 $ 375 $ — Non-investment grade 4 79 — 826 Total $ 4 $ 101 $ 375 $ 826 Interests purchased in the secondary market (fair value) Investment grade $ — $ 30 $ 26 $ — Non-investment grade 23 75 — — Total $ 23 $ 105 $ 26 $ — Derivative assets (fair value) $ — $ 261 $ — $ 89 Derivative liabilities (fair value) — — — 459 At December 31, 2015 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other 1 $ in millions SPE assets (unpaid principal balance) 2 $ 22,440 $ 72,760 $ 17,978 $ 12,235 Retained interests (fair value) Investment grade $ — $ 238 $ 649 $ — Non-investment grade 160 63 — 1,136 Total $ 160 $ 301 $ 649 $ 1,136 Interests purchased in the secondary market (fair value) Investment grade $ — $ 88 $ 99 $ — Non-investment grade 60 63 — 10 Total $ 60 $ 151 $ 99 $ 10 Derivative assets (fair value) $ — $ 343 $ — $ 151 Derivative liabilities (fair value) — — — 449 1. Amounts include CLO transactions managed by unrelated third parties. 2. Amounts include assets transferred by unrelated transferors . At December 31, 2016 $ in millions Level 2 Level 3 Total Retained interests (fair value) Investment grade $ 385 $ 12 $ 397 Non-investment grade 14 895 909 Total $ 399 $ 907 $ 1,306 Interests purchased in the secondary market (fair value) Investment grade $ 56 $ — $ 56 Non-investment grade 84 14 98 Total $ 140 $ 14 $ 154 Derivative assets (fair value) $ 348 $ 2 $ 350 Derivative liabilities (fair value) 98 361 459 At December 31, 2015 $ in millions Level 2 Level 3 Total Retained interests (fair value) Investment grade $ 886 $ 1 $ 887 Non-investment grade 17 1,342 1,359 Total $ 903 $ 1,343 $ 2,246 Interests purchased in the secondary market (fair value) Investment grade $ 187 $ — $ 187 Non-investment grade 112 21 133 Total $ 299 $ 21 $ 320 Derivative assets (fair value) $ 466 $ 28 $ 494 Derivative liabilities (fair value) 110 339 449 Transferred assets are carried at fair value prior to securitization, and any changes in fair value are recognized in the consolidated income statements. The Firm may act as underwriter of the beneficial interests issued by these securitization vehicles. Investment banking underwriting net revenues are recognized in connection with these transactions. The Firm may retain interests in the securitized financial assets as one or more tranches of the securitization. T hese retained interests are included in the consolidated balance sheets . Any changes in the fair value of such retained inter ests are recognized in the consolidated income statements. Proceeds from New Securitization Transactions and Retained Interests in Securitization Transactions $ in millions 2016 2015 2014 New transactions $ 18,975 $ 21,243 $ 20,553 Retained interests 2,701 3,062 3,041 Net gains on sale of assets in securitization transactions at the time of the sale were not material for all periods presented. 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 12). Proceeds from Sales to CLO Entities Sponsored by Non-Affiliates $ in millions 2016 2015 2014 Proceeds from sale of corporate loans sold to those SPEs $ 475 $ 1,110 $ 2,388 Net gains on sale of corporate loans to CLO transactions at the time of sale were not material for all periods presented. The Firm also enters into transactions in which it sells equity securities and contemporaneously enters into bilateral OTC equity derivatives with the purchasers of the securities, through which it retains the exposure to the securities as shown in the following t able. Carrying and Fair Value of Assets Sold and Retained Interest Exposure $ in millions At December 31, 2016 At December 31, 2015 Carrying value of assets derecognized at the time of sale and gross cash proceeds $ 11,209 $ 7,878 Fair value of assets sold 11,301 7,935 Fair value of derivative assets recognized in the consolidated balance sheets 128 97 Fair value of derivative liabilities recognized in the consolidated balance sheets 36 40 Failed Sales For transfers that fail to meet the accounting criteria for a sale, the Firm continues to recognize the assets in Trading assets at fair value, and the Firm recognizes the associated liabilities in Other secured financings at fair value in the consolidated balance sheets (see Note 11 ). The assets transferred to certain unconsolidated VIEs in transactions accounted for as failed sales cannot be removed unilaterally by the Firm and are not generally available to the Firm. The related liabilities a re also non-recourse to the Firm. In certain other failed sale transactions, the Firm has the right to remove assets or provide additional recourse through derivatives such as total return swaps, guarantees or other forms of involvement. Carrying Value of Assets and Liabilities Related to Failed Sales At December 31, 2016 At December 31, 2015 $ in millions Assets Liabilities Assets Liabilities Failed sales $ 285 $ 285 $ 400 $ 400 |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Requirements | |
Regulatory Requirements | 14. Regulatory Requirements Regulatory Capital Framework The Firm is a financial holding company under the Bank Holding Company Act of 1956, as amended, and is subject to the regulation and oversight of the Board of Governors of the Federal Reserve System (the “F ederal 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 Office of the Comptroller of the Currency establishes similar capita l requirements and standards for the Firm’s 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 capital ratios under the regulatory capital requirements. A summary of the calculations of r egulatory capital, risk-weighted assets (“RWAs”) and transition provisions follows. Regulatory Capital Minimum risk-based capital ratio requirements apply to Common Equity Tier 1 capital, Tier 1 capital and Total capital. Certain adjustments to and deductions from capital are required for purposes of determining these ratios, such as goodwill, intangibles, certain deferred tax assets, other amounts in AOCI and investments in the capital instruments of unconsolidated financial institutions. Certain of these adjustments and deductions are also subject to transitional provisions. In addition to the minimum ri sk-based capital ratio requirements, on a fully phased-in basis by 2019, the Firm will be subject to: A greater than 2.5% Common Equity Tier 1 capital conservation buffer; The Common Equity Tier 1 global systemically important bank capital surcharge, currently at 3%; and Up to a 2.5% Common Equity Tier 1 countercyclical capital buffer, currently set by banking regulators at zero (collectively, the “buffers”). In 2016, the phase-in amount for each of the buffers is 25% of the fully phased-in buffer requirement. Failure to maintain the buffers will result in restrictions on the Firm’s ability to make capital distributions, including the payment of dividends and the repurchas e of stock, and to pay discretionary bonuses to executive officers. Risk-Weighted Assets RWAs reflect 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, implied volatilities, correlations or other market factor s, such as market liquidity; and Operational risk: Inadequate or failed processes or systems, human factors or from external events ( e.g. , fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets). The Firm’s binding risk-ba sed capital ratios for regulatory purposes are the lower of the capital ratios computed under the (i) standardized approaches for calculating credit risk RWAs and market risk RWAs (the “Standardized Approach”) and (ii) applicable advanced approaches for ca lculating credit risk, market risk and operational risk RWAs (the “Advanced Approach”). The methods for calculating each of the Firm’s risk-based capital ratios will change through January 1, 2022 as aspects of the capital rules are phased in. These changes may result in differences in the Firm’s reported capital ratios from one reporting per iod to the next that are independent of changes to its capital base, asset composition, off-balance sheet exposures or risk profile. The Firm’s Regulatory Capital and Capital Ratios At December 31, 2016 and December 31, 2015 , the Firm’s binding ratios are based on the Advanced Approach transitional rules. Regulatory Capital At December 31, 2016 $ in millions Amount Ratio Minimum Ratio 1 Regulatory capital and capital ratios Common Equity Tier 1 capital $ 60,398 16.9% 5.9% Tier 1 capital 68,097 19.0% 7.4% Total capital 78,642 22.0% 9.4% Tier 1 leverage 2 — 8.4% 4.0% Assets Total RWAs $ 358,141 N/A N/A Adjusted average assets 3 811,402 N/A N/A At December 31, 2015 $ in millions Amount Ratio Minimum Ratio 1 Regulatory capital and capital ratios Common Equity Tier 1 capital $ 59,409 15.5% 4.5% Tier 1 capital 66,722 17.4% 6.0% Total capital 79,403 20.7% 8.0% Tier 1 leverage 2 — 8.3% 4.0% Assets Total RWAs $ 384,162 N/A N/A Adjusted average assets 3 803,574 N/A N/A N/A—Not Applicable 1. Percentages represent minimum regulatory capital ratios under the transitional rules. 2. Tier 1 leverage ratios are calculated under the Standardized Approach transitional rules. 3. Adjusted average assets represent the denominator of the Tier 1 leverage ratio and are composed of the average daily balance of consolidated on-balance sheet assets under U.S. GAAP during the calendar quarter ended December 31, 2016 and December 31, 2015, respectively , adjusted for disallowed goodwill, transitional int angible assets, certain deferred tax assets, certain investments in the capital instruments of unconsolidated financial institutions and other adjustments. U.S. Bank Subsidiaries ’ Regulatory Capital and Capital Ratios The Firm’s U.S. Bank Subsidiaries are subject to similar regulatory capital requirements as the Firm. Failure to meet minimum capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on the U.S. Ban k Subsidiaries ’ financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, each of the U.S. Bank Subsidiaries must meet specific capital guidelines that involve quantitative measures of its assets, li abilities and certain off-balance sheet items as calculated under regulatory accounting practices. Each U.S. depository institution subsidiary of the Firm must be well-capitalized in order for the Firm to continue to qualify as a financial holding compan y and to continue to engage in the broadest range of financial activities permitted for financial holding companies. Under regulatory capital requirements adopted by the U.S. federal banking agencies, U.S. depository institutions must maintain certain mini mum capital ratios in order to be considered well-capitalized. At December 31, 2016 and December 31, 2015 , the Firm’s U.S. Bank Subsidiaries maintained capital at levels sufficiently in excess of the universally mandated well-capitalized requirements to address any additional capital needs and requirements identified by the U.S. federal banking regulators. At December 31, 2016 and December 31, 2015 , the U.S. Bank Subsidiaries’ binding ratios are based on the Standardized Approach transitional rules. MSBNA’s Regulatory Capital At December 31, 2016 $ in millions Amount Ratio Required Capital Ratio 1 Common Equity Tier 1 capital $ 13,398 16.9% 6.5% Tier 1 capital 13,398 16.9% 8.0% Total capital 14,858 18.7% 10.0% Tier 1 leverage 13,398 10.5% 5.0% At December 31, 2015 $ in millions Amount Ratio Required Capital Ratio 1 Common Equity Tier 1 capital $ 13,333 15.1% 6.5% Tier 1 capital 13,333 15.1% 8.0% Total capital 15,097 17.1% 10.0% Tier 1 leverage 13,333 10.2% 5.0% 1. Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. MSPBNA’s Regulatory Capital At December 31, 2016 $ in millions Amount Ratio Required Capital Ratio 1 Common Equity Tier 1 capital $ 5,589 26.1% 6.5% Tier 1 capital 5,589 26.1% 8.0% Total capital 5,626 26.3% 10.0% Tier 1 leverage 5,589 10.6% 5.0% At December 31, 2015 $ in millions Amount Ratio Required Capital Ratio 1 Common Equity Tier 1 capital $ 4,197 26.5% 6.5% Tier 1 capital 4,197 26.5% 8.0% Total capital 4,225 26.7% 10.0% Tier 1 leverage 4,197 10.5% 5.0% 1. Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. Broker-Dealer Regulatory Capital Requirements MS&Co. is a registered U.S. broker-dealer and registered futures commission merchant and, accordingly, is subject to the minimum net capital requirements of the U.S. Securities and Exchange Commiss ion (“SEC”) and the U.S. Commod ity Futures Trading Commission (“CFTC”). MS&Co. has consistently operated with capital in excess of its regulatory capital requirements. MS&Co.’s net capital totaled $ 10 , 311 million and $ 10,254 million at December 31, 2016 and December 31, 2015 , respectively, which exceeded the amount required by $ 8 ,0 34 million and $ 8,458 million, respectively . MS&Co. is required to hold tentative net capital in excess of $ 1 billion and net capital in excess of $ 500 million in accordance with the market and credit risk standards of Appendix E of SEC Rule 15c3-1. In addition, MS&Co. is required to notify the SEC in the event that its tentative net capital is less than $ 5 billion. At December 31, 2016 and December 31, 2015 , MS&Co. had t entative net capital in excess of the minimum and the notification requirements. MSSB LLC is a registered U.S. broker- dealer and introducing broker for the futures business and, accordingly, is subject to the minimum net capital requirements of the SEC . MSSB LLC has consistently operated with capital in excess of its regulatory capital requirements. MSSB LLC’s net capital totaled $ 3,946 million and $ 3,613 million at December 31, 2016 and December 31, 2015 , respectively, which exc eeded the amount required by $ 3,797 million and $ 3,459 million, respectively. MSIP, a London-based broker-dealer subsidiary, is subject to the capital requirements of the Prudential Regulation Authority, and MSMS, a Tokyo-based broker-dealer subsidiary, is subject to the capital requirements of the Financial Services Agency. MSIP and MSMS have consistently operated with capital in excess of their respective regulatory capital requirements. Other Regulated Subsidiaries Certain other U.S. and non-U. S. subsidiaries of the 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 con sistently operated with capital in excess of their local capital adequacy requirements. The regulatory capital requirements referred to above, and certain covenants contained in various agreements governing indebtedness of the Firm, may restrict the Firm’s ability to withdraw capital from its subsidiaries. At December 31, 2016 and December 31, 2015 , approximately $ 25.3 billion and $ 28.6 billion, respectively, of net assets of consolidated subsidiaries may be restricted as to the payment of cash dividends and advances to the Parent Company. |
Total Equity
Total Equity | 12 Months Ended |
Dec. 31, 2016 | |
Total Equity | |
Total Equity | 15. Total Equity Morg an Stanley Shareholders’ Equity Common Stock Changes in Shares of Common Stock Outstanding in millions 2016 2015 Shares outstanding at beginning of period 1,920 1,951 Treasury stock purchases 1 (133) (78) Other 2 65 47 Shares outstanding at end of period 1,852 1,920 1. 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. Dividends and Share Repurchases The Firm repurchased approximately $ 3,500 million of its outstanding common stock as part of its share repu rchase program during 2016 , and the Firm repurchased approximately $ 2,125 million during 2015 . In June 2016 , the Firm received a conditional no n- objection from the Federal Reserve to its 2016 c apital plan. The capital plan include d a share repurchase of up to $ 3.5 billion of the Firm’s outstanding common stock during the period beginning July 1, 2016 through June 30, 2017 . Additionally, the capital plan included an increase in the quarterl y common stock dividend to $ 0.20 per share f rom $ 0.15 per share during the period beginning with the dividend declared on July 20, 2016 . 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 t hrough 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 approval. Employee Stock Trusts The Firm 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 the value of the stock held in the Employee stock trusts is cla ssified in Morgan Stanley shareholders’ equity and generally accounted for in a manner similar to treasury stock. Preferred Stock Dividends declared on the Firm’s outstanding preferred stock were $ 468 million, $ 452 million and $ 311 million in 2016, 2015 and 2014, respectively. On December 15, 2016, the Firm announced that the Board declared quarterly dividends for preferred stock shareholders of record on December 30, 2016 that were paid on January 17, 2017 . The Firm is authorized to issue 30 million shares of preferred stock. The preferred stock has a preference over the common stock upon liquidation. The Firm’s preferred stock qualifies as Tier 1 capital in accordance with regulatory capital requirements (see Note 14). Series K Preferred Stock. In January 2017, the Firm issued 40,000,000 Depositary Shares, for an aggregate price of $ 1,000 million. Each Depositary Share represents a 1/1,000th interest in a share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K, $ 0.01 par value (“ Series K Preferred Stock”). The Series K Preferred Stock is redeemable at the Firm’s option, (i) in whole or in part, from time to time, on any dividend payment date on or after April 15, 2027 or (ii) in whole but not in part at any time within 90 days fol lowing a regulatory capital treatment event (as described in the terms of that series), in each case at a redemption price of $ 25,000 per share (equivalent to $ 25 per Depositary Share), plus any declared and unpaid dividends to, but excluding, the date fix ed for redemption, without accumulation of any undeclared dividends. The Series K Preferred Stock also has a preference over the Firm’s common stock upon liquidation. The Series K Preferred Stock offering (net of related issuance costs) resulted in proceed s of approximately $ 969 million. Preferred Stock Outstanding $ in millions, except per share data Shares Outstanding Carrying Value At Liquidation At At December 31, Preference December 31, December 31, 2016 per Share 2016 2015 Series A 44,000 $ 25,000 $ 1,100 $ 1,100 C 1 519,882 1,000 408 408 E 34,500 25,000 862 862 F 34,000 25,000 850 850 G 20,000 25,000 500 500 H 52,000 25,000 1,300 1,300 I 40,000 25,000 1,000 1,000 J 60,000 25,000 1,500 1,500 Total $ 7,520 $ 7,520 1. Series C is composed of the issuance of 1,160,791 shares of Series C Preferred Stock to MUFG for an aggregate purchase price of $ 911 million, less the redemption of 640,909 shares of Series C Preferred Stock of $ 503 million, which were converted to common shares of approximately $ 705 million. Preferred Stock Issuance Description Series Issuance Date Preferred Stock Issuance Description Redemption Price per Share 1 Redeemable on or after Date Dividend per Share 2 A 3 July 2006 44,000,000 Depositary Shares, each representing a 1/1,000th of a share of Floating Rate Non-Cumulative Preferred Stock, $0.01 par value $ 25,000 July 15, 2011 $ 255.56 C 3, 4 October 13, 2008 10% Perpetual Non-Cumulative Non-Voting Preferred Stock 1,100 October 15, 2011 25.00 E 5 September 30, 2013 34,500,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 October 15, 2023 445.31 F 5 December 10, 2013 34,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 January 15, 2024 429.69 G 5 April 29, 2014 20,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual 6.625% Non-Cumulative Preferred Stock, $0.01 par value 25,000 July 15, 2019 414.06 H 5, 6 April 29, 2014 1,300,000 Depositary Shares, each representing a 1/25th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 July 15, 2019 681.25 I 5 September 18, 2014 40,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 October 15, 2024 398.44 J 5, 7 March 19, 2015 1,500,000 Depositary Shares, each representing a 1/25th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 July 15, 2020 693.75 1. The redemption price per share for Series A, E, F, G and I is equivalent to $25.00 per Depositary Share. The redemption price per share for Series H and J is equivalent to $1,000 per Depositary Share. 2. Quarterly (unless noted otherwise) dividend s declared in December 2016 were paid on January 17 , 201 7 to preferred shareholders of record on December 30, 2016 . 3. The preferred stock is redeemable at the Firm’s option, in whole or in part, on or after the redemption date. 4. Dividends on the Serie s 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. 5. The preferred stock is 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). 6. Dividend on Series H preferred stock is payable semiannually until July 15, 2019 and quarterly thereafter. 7. Dividend on Series J preferred stock is payable semiannually until July 15, 2020 and quarterly thereafter. In addition to the redemption price per share, the redemption price includes any declared and unpaid dividends up to, but excluding, the date fixed for redemption, without accumulation of any undeclared dividends . Accumulated Other Comprehensive Income (Loss) $ in millions Foreign Currency Translation Adjustments AFS Securities Pensions, Postretirement and Other DVA Total December 31, 2013 $ (266) $ (282) $ (545) $ — $ (1,093) OCI during the period 1 (397) 209 33 — (155) December 31, 2014 (663) (73) (512) — (1,248) OCI during the period 1 (300) (246) 138 — (408) December 31, 2015 (963) (319) (374) — (1,656) Cumulative adjustment for accounting change related to DVA 2 — — — (312) (312) OCI during the period 1 (23) (269) (100) (283) (675) December 31, 2016 $ (986) $ (588) $ (474) $ (595) $ (2,643) Amounts net of tax and noncontrolling interests. In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , a cumulative catch- up adjustment was recorded as of January 1, 2016 to move the cumulative unrealized DVA amount, net of noncontrolling interest and tax, related to outstanding lia bilities under the fair value option election from Retained earnings into AOCI. See Note 2 for further information. Period Changes in OCI Components 2016 1 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interest Net Foreign currency translation adjustments OCI activity $ (24) $ 9 $ (15) $ 12 $ (27) Reclassified to earnings 4 — 4 — 4 Net OCI (20) 9 (11) 12 (23) Change in net unrealized gains (losses) on AFS securities OCI activity $ (313) $ 116 $ (197) $ — $ (197) Reclassified to earnings 2 (113) 41 (72) — (72) Net OCI (426) 157 (269) — (269) Pension, postretirement and other OCI activity $ (162) $ 64 $ (98) $ — $ (98) Reclassified to earnings 2 (3) 1 (2) — (2) Net OCI (165) 65 (100) — (100) Change in net DVA OCI activity $ (429) $ 153 $ (276) $ (13) $ (263) Reclassified to earnings 2 (31) 11 (20) — (20) Net OCI (460) 164 (296) (13) (283) 2015 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interest Net Foreign currency translation adjustments OCI activity $ (119) $ (185) $ (304) $ (4) $ (300) Reclassified to earnings — — — — — Net OCI (119) (185) (304) (4) (300) Change in net unrealized gains (losses) on AFS securities OCI activity $ (305) $ 112 $ (193) $ — $ (193) Reclassified to earnings 2 (84) 31 (53) — (53) Net OCI (389) 143 (246) — (246) Pension, postretirement and other OCI activity $ 202 $ (70) $ 132 $ — $ 132 Reclassified to earnings 2 9 (3) 6 — 6 Net OCI 211 (73) 138 — 138 2014 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interest Net Foreign currency translation adjustments OCI activity $ (139) $ (352) $ (491) $ (94) $ (397) Reclassified to earnings — — — — — Net OCI (139) (352) (491) (94) (397) Change in net unrealized gains (losses) on AFS securities OCI activity $ 391 $ (158) $ 233 $ — $ 233 Reclassified to earnings 2 (40) 16 (24) — (24) Net OCI 351 (142) 209 — 209 Pension, postretirement and other OCI activity $ 41 $ (17) $ 24 $ — $ 24 Reclassified to earnings 2 12 (3) 9 — 9 Net OCI 53 (20) 33 — 33 Exclusive of 2016 cumulative adjustment for accounting change related to DVA. Amounts reclassified to earnings related to : realized gains and losses from sales of AFS securities are classified within Other revenues in the consolidated income statements ; Pension, postretirement and other are classified within Compensation and benefits expenses in the consolidated income statements; and r ealization of DVA are classified within Trading revenues in the consolidated income statements. Cumulative Foreign Currency Translation Adjustments Cumulative foreign currency translation adjustments include gains or losses resulting from translating foreign currency financial statements from their respective functional currencies to U.S. dollars, net of hedge gains or losses and related tax effects. The Firm uses foreign currency contracts to manage the currency exposure relating to its net investments in non-U.S. dollar functional currency subsidiaries. Increases or decreases in the value of net foreign investments generally are tax deferred for U.S. purposes, but the related hedge gains and losses are taxable currently. The Firm may elect not to hedge its net investments in certain foreign operations due to market conditions or other reas ons, including the availability of various currency contracts at acceptabl e costs. Information at December 31, 2016 and December 31, 2015 relating to the effects on cumulative foreign currency translation adjustments that resulted from the translation of f oreign 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 following table. Cumulative Foreign Currency Translation Adjustments At At December 31, December 31, $ in millions 2016 2015 Resulting from net investments in subsidiaries with a non-U.S. dollar functional currency $ (2,018) $ (1,996) Resulting from realized or unrealized losses on hedges, net of tax 1,032 1,033 Total $ (986) $ (963) Net investments in non-U.S. dollar functional currency subsidiaries subject to hedges were $ 8,856 million and $ 8,170 million at December 31, 2016 and December 31, 2015, respectively. Noncontrolling Interests Noncontrolling interests were $ 1,127 million and $ 1,002 million at December 31, 2016 and December 31, 2015 , respectively. The increase in noncontrolling interests was primarily due to the consolidation of certain investment management funds sponsored by the Firm and the increase in net income attributable to noncontrolling interests. See Note 2 for further information on the adoption of the accounting update Amendments to the Consolidation Analysis . |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 16. Earnings per Common Shar e Calculation of Basic and Diluted EPS in millions, except for per share data 2016 2015 2014 Basic EPS Income from continuing operations $ 6,122 $ 6,295 $ 3,681 Income (loss) from discontinued operations 1 (16) (14) Net income 6,123 6,279 3,667 Net income applicable to noncontrolling interests 144 152 200 Net income applicable to Morgan Stanley 5,979 6,127 3,467 Less: Preferred stock dividends (468) (452) (311) Less: Allocation of (earnings) loss to participating RSUs 1 (3) (4) (4) Earnings applicable to Morgan Stanley common shareholders $ 5,508 $ 5,671 $ 3,152 Weighted average common shares outstanding 1,849 1,909 1,924 Earnings per basic common share Income from continuing operations $ 2.98 $ 2.98 $ 1.65 Income (loss) from discontinued operations — (0.01) (0.01) Earnings per basic common share $ 2.98 $ 2.97 $ 1.64 Diluted EPS Earnings applicable to Morgan Stanley common shareholders $ 5,508 $ 5,671 $ 3,152 Weighted average common shares outstanding 1,849 1,909 1,924 Effect of dilutive securities: Stock options and RSUs 1 38 44 47 Weighted average common shares outstanding and common stock equivalents 1,887 1,953 1,971 Earnings per diluted common share Income from continuing operations $ 2.92 $ 2.91 $ 1.61 Income (loss) from discontinued operations — (0.01) (0.01) Earnings per diluted common share $ 2.92 $ 2.90 $ 1.60 1. RSUs that are considered participating securities are treated as a separate class of securities in the computation of basic EPS, and, therefore, such RSUs are not included as incremental shares in the diluted EPS computations. The dilut ed EPS computations also do not include weighted average antidilutive RSUs and antidilutive stock options of 13 million shares during 2016, 12 million shares during 2015 and 15 million s hares during 2014. |
Interest Income and Interest Ex
Interest Income and Interest Expense | 12 Months Ended |
Dec. 31, 2016 | |
Interest Income and Interest Expense | |
Interest Income and Interest Expense | 17. Inter est Income and Interest Expense $ in millions 2016 2015 2014 Interest income 1 Investment securities $ 1,142 $ 876 $ 613 Loans 2,724 2,163 1,690 Interest bearing deposits with banks 170 108 109 Securities purchased under agreements to resell and Securities borrowed 2 (374) (560) (298) Trading assets, net of Trading liabilities 3 2,131 2,262 2,109 Customer receivables and Other 4 1,223 986 1,190 Total interest income $ 7,016 $ 5,835 $ 5,413 Interest expense 1 Deposits $ 83 $ 78 $ 106 Short-term and Long-term borrowings 3,606 3,497 3,613 Securities sold under agreements to repurchase and Securities loaned 5 977 1,024 1,216 Customer payables and Other 6 (1,348) (1,857) (1,257) Total interest expense $ 3,318 $ 2,742 $ 3,678 Net interest $ 3,698 $ 3,093 $ 1,735 1. Interest income and Interest expense are recorded within the consolidated income statements depending on the nature of the instrument and related market conventions. When interest is included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. 2. Includes fees paid on Securities borrowed . 3. Interest expense on Trading liabilities is reported as a reduction to Interest income on Trading assets. 4. Inclu des interest from customer receivables and cash deposited with clearing organizations or segregated under federal and other regulations or requirements . 5. Include s fees received on Securities loaned. 6. Includes fees received from prime brokerage customers for stock loan transactions incurred to cover customers’ short positions. |
Deferred Compensation Plans
Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Compensation Arrangements [Abstract] | |
Deferred Compensation Plans | 18 . Deferred Compensation Plans The Firm maintains various deferred stock-based and cash-based compensation plans for the benefit of certain current and former employees. Stock-Based Compensation Plans The components of the Firm’s stock-based compensation expense (net of cancellations) are presented in the following table: Stock-Based Compensation Expense $ in millions 2016 2015 2014 Restricted stock units $ 1,054 $ 1,080 $ 1,212 Stock options 2 (3) 5 Performance-based stock units 81 26 45 Total 1 $ 1,137 $ 1,103 $ 1,262 1. Amounts f or 2016, 2015 and 2014 include $ 73 million, $ 68 million and $ 31 million, respectively, related to stock-based awards that were granted in 2017, 2016 and 2015 , respectively, to employees who satisfied retirement-eligible requirements under award terms that do not contain a service period. The tax benefit related to stock-based compensation expense was $ 381 million, $ 369 million and $ 404 million for 2016, 2015 and 2014, respectively. At December 31, 2016, the Firm had $ 619 million of unrecognized compensation cost related to unvested stock-based awards . Absent forfeitures or cancellations , this amount of unrecognized compensation cost will be recognized as $ 415 million in 2017, $ 175 million in 2018 and $ 29 million thereafter. These amounts do not include 2016 performance year awards granted in January 2017, which wi ll begin to be amortized in 2017 (see “2016 Performance Year Deferred Compensation Awards” here in) . In connection with awards under its stock-based compensation plans, the Firm is authorized to issue shares of its common stock held in treasury or newly issued shares. At December 31, 2016, approximately 103 million shares were available for future g rants under these plans. The Firm generally uses treasury shares, if available, to deliver shares to employees and has an ongoing repurchase authorization that includes repurchases in connection with awards granted under its stock-based compensation pla ns. Share repurchases by the Firm are subject to regulatory approval. See Note 15 for additional information on the Firm’s share repurchase program. Restricted Stock Units RSUs are generally subject to vesting over time, generally three years from the date of grant, 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 canceled if employment is terminated before the end of the relev ant vesting period and 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. Vested and Unvested RSU Activity 2016 shares in millions Number of Shares Weighted Average Grant Date Fair Value RSUs at beginning of period 105 $ 29.26 Granted 38 25.48 Conversions to common stock (40) 25.42 Canceled (3) 29.57 RSUs at end of period 1 100 29.35 1. At December 31, 201 6 , approximately 98 million RSUs with a weighted average grant date fair value of $ 29.35 were vested or expected to vest. The weighted average grant date fair value for RSUs granted during 2015 and 2014 was $ 34.76 and $ 32.58 , respectively. At December 31, 2016, the weighted average remaining term until delivery for the Firm’s outstanding RSUs was approximately 1.3 years. At December 31, 2016, the intrinsic value of RSUs vested or expected to vest was $ 4,159 million. The tota l intrinsic value of RSUs converted to common stock during 2016, 2015 and 2014 was $ 1,068 million, $ 1,646 million and $ 1,461 million, respectively. Unvested RSU Activity 2016 shares in millions Number of Shares Weighted Average Grant Date Fair Value Unvested RSUs at beginning of period 70 $ 29.91 Granted 38 25.48 Vested (40) 27.70 Canceled (3) 29.58 Unvested RSUs at end of period 1 65 28.70 1. Unvested RSUs represent awards where recipients have yet to satisfy either the explicit vesting terms or retirement-eligible requirements. At December 31, 201 6 , approximately 63 million unvested RSUs with a weighted average grant date fair value of $ 28.68 were expected to vest. The aggregate fair value o f awards that vested during 2016, 2015 and 2014 was $ 1,088 million, $ 1,693 million and $ 1,517 million, respectively. Stock Options Stock options generally have an exercise price not less than the fair value of the Firm’s common stock on the date of grant, vest and become exercisable over a three-year period and expire five to 10 years from the date of grant, subject to accelerated expiration upon certain terminations of employment. Stock option s have vesting, restriction and cancellation provisions that are generally similar to those of RSUs. No stock options were granted during 2016, 2015 or 2014. The Firm’s expected option life has been determined based upon historical experience. The expected stock price volatility assumption was determined using the implied volatility of exchange-traded options, in accordance with accounting guidance for share-based paymen ts. The risk-free interest rate was determined based on the yields available on U.S. Treasury zero-coupon issues. Stock Option Activity 2016 options in millions Number of Options Weighted Average Exercise Price Options outstanding at beginning of period 17 $ 52.26 Exercised (4) 26.90 Expired (11) 65.45 Options outstanding at end of period 1 2 28.20 Options exercisable at end of period 2 28.20 1. At December 31, 2016, approximatel y 2 million options with a weighted average exercise price of $ 28.20 were vested. The aggregate intrinsic value of stock options exercised was $ 41 million in 2016 and $ 2 million per year in 2015 and 2014, with a weighted average exercise price of $26.90, $ 30.01 and $ 24.68 for 2016, 2015 and 2014, respectively. Cash received from the exercise of stock options was $ 66 million for 2016. The income tax benefits realized from the exercise of the stock options was $ 3 million for 2016. At December 31, 2016, the intrinsic value of exercisable stock options was $ 26 million. Stock Options Outstanding and Exercisable At December 31, 2016 options in millions Options Outstanding and Exercisable Range of Exercise Prices Number Outstanding Weighted Average Exercise Price Average Remaining Life (Years) $20.00 - $24.99 1 $ 22.98 1.1 $25.00 - $34.99 1 30.01 1.1 Total 2 Performance-Based Stock Units PSUs will vest and convert to shares of common stock at the end of the performance period only if the Firm satisfies predetermined performance and market-based conditions over the three-year performance period that began on January 1 of the grant year and ends three years later on December 31. Under the terms of the award, the number of PSUs that will actually vest and convert to shares will be based on the extent to which the Firm achieves the specified performance goals during the performance period. PSUs have vesting, restriction and cancellation provisions that are generally similar to those of RSUs. One-half of the award will be earned based on the Firm’s average retu rn on equity, excluding the impact of DVA, certain gains or losses associated with the sale of specified businesses, specified goodwill impairments, certain gains or losses associated with specified legal settlements related to business activities conducte d prior to January 1, 2011 and specified cumulative catch-up adjustments resulting from changes in an existing, or application of a new accounting principle that are not applied on a fully retrospective basis (“MS Adjusted Average ROE”). The number of PSUs ultimately earned for this portion of the awards will be determined by applying a multiplier within the following ranges : Minimum Maximum MS Adjusted Average ROE Multiplier MS Adjusted Average ROE Multiplier Less than 5% 0.0 11.5% or more 1.5 On the date of award, t he fair value per share of th is portion was $ 25.19 , $ 34.58 and $ 32.81 for 2016, 2015 and 2014, respectively. One-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 Financial Sectors Index (“Relative MS TSR”). The number of PSUs ultimately earned for this portion of the award will be determined by applying a multiplier within the follow ing ranges : Minimum Maximum Relative MS TSR Multiplier Relative MS TSR Multiplier Less than -50% 0.0 25% or more 1.5 On the date of award, t he fair value per share of this portion was $ 24.51 , $ 38.07 and $ 37.72 for 201 6, 2015 and 2014 , respectively, estimated using a Monte Carlo simulation and the following assumptions : Grant Year Risk-Free Interest Rate Expected Stock Price Volatility Expected Dividend Yield 2016 1.1% 25.4% 0.0% 2015 0.9% 29.6% 0.0% 2014 0.8% 44.2% 0.0% The risk-free interest rate was determined based on the yields available on U.S. Treasury zero-coupon issues. The expected stock price volatility was determined using historical volatility. The expected dividend yield is equivalent to reinvesting dividends . A correlation coefficient was developed based on historic al price data of the Firm and the S&P 500 Financial Sectors Index. PSU Activity 2016 in millions Number of Shares PSUs at beginning of period 4 Awarded 2 Conversions to common stock (2) PSUs at end of period 4 Deferred Cash-Based Compensation Plans Deferred cash-based compensation plans generally provide a return to the plan participants based upon the performance of various referenced investments. The compon ents of the Firm’s deferred compensation expense (net of cancellations) are presented as follows: Deferre d Compensation Expense $ in millions 2016 2015 2014 Deferred cash-based awards 1 $ 950 $ 660 $ 1,757 Return on referenced investments 228 112 408 Total $ 1,178 $ 772 $ 2,165 1. Amounts f or 2016, 2015 and 2014 include $ 151 million, $ 144 million and $ 92 million, respectively, related to deferred cash-based awards that were granted in 2017, 2016 and 2015, respectively, to employees who satisfied retirement-eligible requirements under award terms that do not contain a service period. At December 31, 2016 , the Firm had approximately $ 688 million of unrecognized compensation cost related to unvested deferred cash-based awards (excluding unrecognized expense for returns on referenc ed investments ) . Absent forfeitures or cancellations and any future return on referenced investments, this amount of unrecognized compensation cost will be recognized as $ 394 million in 2017, $ 111 million in 2018 and $ 183 million thereafter. These amounts do not include 2016 performance yea r awards granted in January 2017, which will begin to be amortized in 2017 (see below). 201 6 Performance Year Deferred Compensation Awards In January 2017 , the Firm grante d approximately $ 763 billion of stock-based awards and $ 895 billion of deferred cash- based awards related to the 2016 performance year that contain a future service requirement. Absent forfeitures or cancellations or accelerations, and any future return on referenced investments, the annual compensa tion cost for these awards will be recognized as follows : A nnual Compensation Cost for 2016 Performance Year Awards $ in millions 2017 2018 Thereafter Total Stock-based awards $ 440 $ 174 $ 149 $ 763 Deferred cash-based awards 518 263 114 895 Total $ 958 $ 437 $ 263 $ 1,658 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plans | |
Employee Benefit Plans | 19. Employee Benefit Plans The Firm sponsors various retirement plans for the majority of its U.S. and non-U.S. employees. The Firm provides certain other postretirement benefits, primarily health care and life insurance, to eligible U.S. employees. Pension and Other Postretirement Plans Substantially all of the 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 unde r Section 401(a) of the Internal Revenue Code (the “U.S. Qualified Plan”). The U.S. Qualified Plan has ceased future benefit accruals. Unfunded supplementary plans (the “Supplemental Plans”) cover certain executives. Liabilities for benefits payable unde r the Supplemental Plans are accrued by the Firm and are funded when paid. The Morgan Stanley Supplemental Executive Retirement and Excess Plan (the “SEREP”), a non-contributory defined benefit plan that is not qualified under Section 401(a) of the Interna l Revenue Code, ceased future benefit accruals after September 30, 2014. Any benefits earned under the SEREP prior to October 1, 2014 will be payable in the future based on the SEREP’s provisions. The amendment did not have a material impact on the consoli dated financial statements. Certain of the Firm’s non-U.S. subsidiaries also have d efined benefit pension plans covering substantially all of their 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 an unfunded postretirement benefit plan that provides medical and life insurance for eligible U.S. retirees and medical insurance for their dependents. The Morgan Stanley Medical Plan was amended to change the health care plans offered after December 31, 2014 for retirees who are Medicare-eligible and age 65 or older. The amendment did not have a material impact on the consolidated financial statements. Components of the Net Periodic Benefit Expense (Income) Pension Plans $ in millions 2016 2015 2014 Service cost, benefits earned during the period $ 17 $ 19 $ 20 Interest cost on projected benefit obligation 150 152 154 Expected return on plan assets (122) (120) (110) Net amortization of prior service credit — (1) — Net amortization of actuarial loss 12 26 22 Curtailment loss — — 3 Settlement loss — 2 2 Net periodic benefit expense (income) $ 57 $ 78 $ 91 Other Postretirement Plan $ in millions 2016 2015 2014 Service cost, benefits earned during the period $ 1 $ 1 $ 2 Interest cost on projected benefit obligation 4 3 5 Net amortization of prior service credit (17) (18) (14) Net periodic benefit expense (income) $ (12) $ (14) $ (7) Pre-tax Amounts Recognized in Other Comprehensive Income (Loss) Pension Plans $ in millions 2016 2015 2014 Net gain (loss) $ (149) $ 212 $ (18) Prior service credit (cost) 1 1 (2) Amortization of prior service credit — (1) — Amortization of net loss 12 28 27 Total $ (136) $ 240 $ 7 Other Postretirement Plan $ in millions 2016 2015 2014 Net gain (loss) $ (2) $ (3) $ (9) Prior service credit (cost) — (9) 64 Amortization of prior service credit (17) (18) (14) Total $ (19) $ (30) $ 41 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 amortization of the unrecognized net gains and losses is generally over the future service of active participants. The U.S. Qualified Plan and, effective October 1, 2014, the SEREP amortize the unrecognized net gains and losses over the average life expectancy of participants. Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense (Income) Pension Plans 2016 2015 2014 Discount rate 4.27% 3.86% 4.74% Expected long-term rate of return on plan assets 3.61% 3.59% 3.75% Rate of future compensation increases 3.19% 2.85% 1.06% Other Postretirement Plan 2016 2015 2014 Discount rate 4.13% 3.77% 3.77% The accounting for pension and postretirement plans involves certain assumptions and estimates. The expected long-term rate of return on plan assets is a long-term assumption that generally is expected to remain the same from one year to the next unless there is a significant change in the target asset allocation, the fees and expenses paid by the plan or market conditions. The expected long-te rm 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. The U.S. Qualified Plan is primarily invested in fixed income sec urities and related derivative instruments, including interest rate swap contracts. This asset allocation is expected to help protect the plan’s funded status and limit volatility of the Firm’s contributions. Total U.S. Qualified Plan investment portfolio performance is assessed by comparing actual investment performance to changes in the estimated present value of the U.S. Qualified Plan’s benefit obligation. Benefit Obligation and Funded Status Rollforward of the Benefit Obligation and Fair Value of Plan Assets Pension Plans Other Postretirement Plan $ in millions 2016 2015 2016 2015 Rollforward of benefit obligation Benefit obligation at beginning of year $ 3,604 $ 4,007 $ 87 $ 75 Service cost 17 19 1 1 Interest cost 150 152 4 3 Actuarial loss (gain) 1 159 (267) — 4 Plan amendments (1) (1) — 9 Plan curtailments — (9) — — Plan settlements (19) (29) — — Change in mortality assumptions 2 64 (46) 1 (1) Benefits paid (219) (194) (5) (4) Other, including foreign currency exchange rate changes (44) (28) — — Benefit obligation at end of year $ 3,711 $ 3,604 $ 88 $ 87 Rollforward of fair value of plan assets Fair value of plan assets at beginning of year $ 3,497 $ 3,705 $ — $ — Actual return on plan assets 196 9 — — Employer contributions 38 31 5 4 Benefits paid (219) (194) (5) (4) Plan settlements (19) (29) — — Other, including foreign currency exchange rate changes (62) (25) — — Fair value of plan assets at end of year $ 3,431 $ 3,497 $ — $ — Funded (unfunded) status $ (280) $ (107) $ (88) $ (87) 1. Amounts primarily reflect the impact of year-over-year discount rate fluctuations. 2. Amounts represent adoption of new mortality tables published by the Society of Actuaries. Summary of Funded Status Pension Plans Other Postretirement Plan At At At At $ in millions December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Amounts recognized in the consolidated balance sheets Assets $ 230 $ 382 $ — $ — Liabilities (510) (489) (88) (87) Net amount recognized $ (280) $ (107) $ (88) $ (87) Amounts recognized in accumulated other comprehensive income (loss) Prior service credit (cost) $ 2 $ 1 $ 17 $ 34 Net gain (loss) (763) (626) — 2 Net gain (loss) recognized $ (761) $ (625) $ 17 $ 36 The estimated prior service credit that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit expense over 2017 is approximately $ 17 million for the other postretirement plan. The estimated net loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit expense (income) over 2017 is approximately $ 17 million for defined benefit pension plans. The accumulated benefit obligation for all defined benefit pension plans was $ 3,696 million and $ 3,592 million at December 31, 2016 and December 31, 2015 , respectively. Pension Plans with Projected Benefit Obligation in Excess of the Fair Value of Plan Assets $ in millions At December 31, 2016 At December 31, 2015 Projected benefit obligation $ 566 $ 543 Fair value of plan assets 56 54 Pension Plans with Accumulated Benefit Obligation in Excess of the Fair Value of Plan Assets $ in millions At December 31, 2016 At December 31, 2015 Accumulated benefit obligation $ 552 $ 531 Fair value of plan assets 56 54 Weighted Average Assumptions Used to Determine Benefit Obligation Pension Plans Other Postretirement Plan At At At At December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Discount rate 4.01% 4.27% 4.01% 4.13% Rate of future compensation increase 3.10% 3.19% N/A N/A N/A—Not Applicable 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 actuaries, using a pension discount yield curve based on the characteristics of the plans, each determined independently. The pension discount yield curve represents spot discount yields base d 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 env ironments and available bond indices. Assumed Health Care Cost Trend Rates Used to Determine the U.S. Postretirement Benefit Obligation At At December 31, 2016 December 31, 2015 Health care cost trend rate assumed for next year Medical 5.96% 6.25% Prescription 9.32% 11.00% Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.50% 4.50% Year that the rate reaches the ultimate trend rate 2038 2038 Assumed health care cost trend rates can have a significant effect on the amounts reported for the Firm’s postretirement benefit plan. Effect of Changes in Assumed Health Care Cost Trend Rates $ in millions One-Percentage Point Increase One-Percentage Point Decrease Total 2016 postretirement service and interest cost N/M N/M December 31, 2016 postretirement benefit obligation $ 6 $ (5) N/M—Not Meaningful Plan Assets The U.S. Qualified Plan assets represent 88 % 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. Derivative instruments are permitted in the U.S. Qualified Plan’s investment portfolio only to the extent that they comply with all of the plan’s investment policy guidelines and are consistent with the plan’s risk and return objectives. In addition, any investment in derivatives must meet the following conditions : M ay be used only if derivative instruments are deemed by the investment manager to be more attractive than a similar direct investment in the underlying cash market or if the vehicle is being used to manage risk of the portfolio. M ay not be used in a speculative manner or to leverage the portfolio under any circumstances. M ay not be used as short-term trading vehicles. The investment philosophy of the U.S. Qualified Plan is that investment activity is undertaken for long-term investment rather than short-term trading. M ay be used in the management of the U.S. Qualified Plan’s portfolio only when the derivative instruments’ possible effects can be quantified, shown to enhance the risk-return profile of the portfolio, and reported in a meaningful an d understandable manner. As a fundamental operating principle, any restrictions on the underlying assets apply to a respective derivative product. This includes percentage allocations and credit quality. 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 ass ets and liabilities as described in Notes 2 and 3. OTC derivative contracts consist of investments in interest rate 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 that are 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. The underlying securities of the commingled trust funds held by the U.S. Qualified Plan consist mainly of long-duration fixed income instruments. Commingled trust funds are redeemable at NAV at the measurement d ate 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 exchan ge 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 i n 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 a nd forei gn funds provided by the fund manager to be the best estimate of fair value. Fair Value of Plan Assets and Liabilities At December 31, 2016 $ in millions Level 1 Level 2 Level 3 Total Assets Investments: Cash and cash equivalents 1 $ 55 $ — $ — $ 55 U.S. government and agency securities: U.S. Treasury securities 1,493 — — 1,493 U.S. agency securities — 423 — 423 Total U.S. government and agency securities 1,493 423 — 1,916 Corporate and other debt: Collateralized debt obligation — 13 — 13 Total corporate and other debt — 13 — 13 Derivative contracts — 159 — 159 Derivative-related cash collateral receivable — 76 — 76 Other investments — — 38 38 Total assets 2 $ 1,548 $ 671 $ 38 $ 2,257 Liabilities Derivative contracts $ — $ 225 $ — $ 225 Total liabilities $ — $ 225 $ — $ 225 At December 31, 2015 $ in millions Level 1 Level 2 Level 3 Total Assets Investments: Cash and cash equivalents 1 $ 28 $ — $ — $ 28 U.S. government and agency securities: U.S. Treasury securities 1,398 — — 1,398 U.S. agency securities — 263 — 263 Total U.S. government and agency securities 1,398 263 — 1,661 Corporate and other debt: State and municipal securities — 2 — 2 Collateralized debt obligation — 22 — 22 Total corporate and other debt — 24 — 24 Derivative contracts — 224 — 224 Other investments — — 35 35 Receivables: Other receivables 1 — 54 — 54 Total assets 2 $ 1,426 $ 565 $ 35 $ 2,026 Liabilities Derivative contracts $ — $ 65 $ — $ 65 Other liabilities 1 — 100 — 100 Total liabilities $ — $ 165 $ — $ 165 1. Cash and cash equivalents, other receivables and other liabilities are valued at their carrying value, which approximates fair value. 2. Amounts exclude Commingled trust funds and Foreign funds measured at fair value using the NAV per share, which are not classified in the fair value hierarchy. Commingled trust funds consist of investments in fixed income funds and money market funds of $ 999 million and $ 86 million, respectively, at December 31, 2016 and $ 1,239 million and $ 59 million, respectively, at December 31, 2015 . Foreign funds include investments in fixed income funds, liquidity funds and targeted cash flow funds of $ 111 million, $ 9 milli on and $ 194 million, respectively, at December 31, 2016 and $ 149 million, $ 98 million and $ 91 million, respectively, at December 31, 2015 . Fund amounts as of December 31, 2015 have been excluded from the table to conform to the current presentation. There were no transfers between lev els during 2016 and 2015 . Changes in Level 3 Pension Assets $ in millions 2016 2015 Balance at beginning of period $ 35 $ 36 Actual return on plan assets related to assets held at end of period — (4) Purchases, sales, other settlements and issuances, net 3 3 Balance at end of period $ 38 $ 35 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, 2016 , the Firm expected to contribute approximately $ 50 million to its pension and postretirement benefit plans in 2017 based upon the plans’ current funded status and expected asset return assumptions for 2017. Expected Future Benefit Payments At December 31, 2016 $ in millions Pension Plans Other Postretirement Plan 2017 $ 149 $ 5 2018 135 6 2019 139 6 2020 145 6 2021 153 7 2022-2026 867 31 Morgan Stanley 401(k) Plan U.S. employees meeting certain eligibility requirements may participate in the Morgan Stanley 401(k) Plan. Eligible U.S. employees receive discretionary 401(k) matching cash contributions as determined annually by the Firm. For 2016 and 2015 , the Firm made a $1 for $1 Firm match up to 4 % of eligible pay , up to the Internal Revenue Service (“ IRS ”) limit . Matching contributions for 2016 and 2015 were invested according to each participant’s investment direction. Eli gible U.S. employees with eligible pay less than or equal to $100,000 also received a fixed contribution under the 401(k) Plan that equaled 2 % of eligible pay. Transition contributions are allocated to certain eligible employees. The Firm match, fixed cont ribution and transition contribution are included i n the Firm’s 401(k) expense. The Firm’s 401(k) expense for 2016 , 2015 and 2014 was $ 250 million, $ 255 million and $ 256 million, respectively. Defined Contribution Pension Plans The Firm ma intains separate defined contribution pension plans that cover substantially all employees of certain non-U.S. subsidiaries. Under such plans, benefits are determined based on a fixed rate of base salary with certain vesting requirements. In 2016 , 2015 and 2014 , the Firm’s expense related to these plans was $ 101 million, $ 111 million and $ 117 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Income Taxes | 20. Income Taxes Provision for (Benefit from) Income Taxes Components of Provision for (Benefit from) Income Taxes $ in millions 2016 2015 2014 Current U.S. federal $ 330 $ 239 $ (604) U.S. state and local 221 144 260 Non-U.S. U.K. 196 247 88 Japan 28 19 114 Hong Kong 14 24 34 Other 1 359 333 258 Total $ 1,148 $ 1,006 $ 150 Deferred U.S. federal $ 1,336 $ 1,031 $ (207) U.S. state and local 74 43 (56) Non-U.S. U.K. 56 (56) (31) Japan 127 58 56 Hong Kong 31 50 9 Other 1 (46) 68 (11) Total $ 1,578 $ 1,194 $ (240) Provision for (benefit from) income taxes from continuing operations $ 2,726 $ 2,200 $ (90) Provision for (benefit from) income taxes from discontinued operations $ 1 $ (7) $ (5) 1. For 2016, significant Non-U.S. other jurisdictions included total tax provisions of $ 125 million, $ 46 million and $ 38 million from Brazil, India and France , respectively. For 2015, significant Non-U.S. other jurisdictions included total tax provisions of $ 68 million, $ 62 million, $ 58 million, $ 45 million and $ 42 million from Mexico, Brazil, Netherlands, India and France, respectively. For 2014, significant Non-U.S. other jurisdictions included total tax provisions of $ 44 million, $ 3 8 million and $ 38 million from Brazil, India and Mexico, respectively. The Firm recorded a net income tax provision (benefit) to Additional paid-in capital related to employee stock-based compensation transactions of $ 24 million, $ (203) million and $ (6) m illion in 2016, 2015 and 2014, respectively. Effective Income Tax Rate Reconciliation of the U.S. Federal Statutory Income Tax Rate to the Effective Income Tax Rate 2016 2015 2014 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % U.S. state and local income taxes, net of U.S. federal income tax benefits 2.2 1.4 6.5 Domestic tax credits (2.5) (1.5) (5.0) Tax exempt income (0.1) (0.2) (3.5) Non-U.S. earnings Foreign tax rate differential (3.1) (8.7) (22.5) Change in reinvestment assertion — 0.2 1.4 Change in foreign tax rates 0.1 — — Wealth Management legal entity restructuring — — (38.7) Non-deductible legal expenses — — 25.5 Other (0.8) (0.3) (1.2) Effective income tax rate 30.8 % 25.9 % (2.5) % The Firm’s effective tax rate from continuing operations for 2016 included net discrete tax benefits of $ 68 million. These net discrete tax benefits were primarily related to the remeasurement of reserves and related interest due to new information regarding the status of a multi-year tax authority examination , partially offset by adjustments for other tax matters . Excluding these net discrete tax benefits, the effective tax rate from continuin g operations for 2016 would have been 31.6 %. The Firm’s effective tax rate from continuing operations for 2015 included net discrete tax benefits of $ 564 million. These net discrete tax benefits were primarily associated with the repatriation of non-U.S. e arnings at a cost lower than originally estimated due to an internal restructuring to simplify the Firm’s legal entity organization in the U.K. Excluding these net discrete tax benefits, the effective tax rate from continuing operations for 2015 would have been 32.5 %. The Firm’s effective tax rate from continuing operations for 2014 included net discrete tax benefits of $ 2,226 million. These net discrete tax benefits consisted of: $ 1,380 million primarily due to the release of a deferred tax liability, pre viously established as part of the acquisition of Smith Barney in 2009 through a charge to Additional paid-in capital, as a result of the legal entity restructuring that included a change in tax status of Morgan Stanley Smith Barney Holdings LLC from a par tnership to a corporation; $ 609 million principally associated with remeasurement of reserves and related interest due to new information regarding the status of a multi-year tax authority examination; and $ 237 million primarily associated with the repatri ation of non-U.S. earnings at a cost lower than originally estimated. Excluding these net discrete tax benefits, the effective tax rate from continuing operations for 2014 would have been 59.5 %, which is primarily attributable to approximately $ 900 million of tax provision from non-deductible expenses for litigation and regulatory matters. Deferred Tax Assets and Liabilities Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. Deferred Tax Assets and Liabilities At December 31, At December 31, $ in millions 2016 2015 Gross deferred tax assets Tax credits and loss carryforwards $ 731 $ 1,987 Employee compensation and benefit plans 3,504 3,514 Valuation and liability allowances 656 846 Valuation of inventory, investments and receivables 1,062 738 Other 21 35 Total deferred tax assets 5,974 7,120 Deferred tax assets valuation allowance 164 139 Deferred tax assets after valuation allowance $ 5,810 $ 6,981 Gross deferred tax liabilities Non-U.S. operations $ 270 $ 269 Fixed assets 773 716 Total deferred tax liabilities $ 1,043 $ 985 Net deferred tax assets $ 4,767 $ 5,996 The Firm had tax credit carryforwards for which a related deferred tax asset of $ 465 million and $ 1,647 million was recorded at December 31, 2016 and December 31, 2015, respectively. These carryforwards are subject to annual limitations on utilization, with the earliest expiration beginning in 2030, if not utilized. The Firm believes the recognized net deferred tax asset (after valuation allowance) of $ 4,767 million at December 31, 201 6 is more likely than not to be realized based on expectations as t o future taxable income in the jurisdictions in which it operates. The Firm had $ 12,006 million and $ 10,209 million of cumulative earnings at December 31, 201 6 and December 31, 201 5 , respectively, attributable to foreign subsidiaries for which no U.S. pro vision has been recorded for income tax that could occur upon r epatriation. Accordingly, $ 1,111 million and $ 893 million of deferred tax liabilities were not recorded with respect to the se earnings at December 31, 2016 and December 31, 2015 , respectively. The increase in indefinitely reinvested earnings is attributable to regulatory and other capital requirements in foreign jurisdictions. Unrecognized Tax Benefits The total amount of unrecognized tax benefits was approximately $1.9 billion, $1.8 billion and $2.2 billion at December 31, 2016, December 31, 2015 and December 31, 2014, respectively. Of this total, approximately $ 1.1 billion, $ 1.1 billion and $ 1.0 billion, respectively (net of federal benefit of state issues, competent authority and foreign tax credit offsets), represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effec tive t ax rate in future periods. Interest and penalties related to unrecognized tax benefits are classified as provision for income taxes. The Firm recognized $ 28 million, $ 18 million and $ (35) million of interest expense (benefit) (net of federal and state in come tax benefits) in the consolidated income statements for 2016, 2015 and 2014, respectively. Interest expense accrued at December 31, 2016, December 31, 2015 and December 31, 2014 was approximately $ 150 million , $ 122 million and $ 258 million, respective ly, net of federal and state income tax benefits. Penalties related to unrecognized tax benefits for the years mentioned above were immaterial. Rollforward of Unrecognized Tax Benefits Unrecognized Tax Benefits $ in millions Balance at December 31, 2013 $ 4,096 Increase based on tax positions related to the current period 135 Increase based on tax positions related to prior periods 100 Decrease based on tax positions related to prior periods (2,080) Decrease related to settlements with taxing authorities (19) Decrease related to a lapse of applicable statute of limitations (4) Balance at December 31, 2014 $ 2,228 Increase based on tax positions related to the current period $ 230 Increase based on tax positions related to prior periods 114 Decrease based on tax positions related to prior periods (753) Decrease related to settlements with taxing authorities (7) Decrease related to a lapse of applicable statute of limitations (8) Balance at December 31, 2015 $ 1,804 Increase based on tax positions related to the current period $ 172 Increase based on tax positions related to prior periods 14 Decrease based on tax positions related to prior periods (134) Decrease related to settlements with taxing authorities — Decrease related to a lapse of applicable statute of limitations (5) Balance at December 31, 2016 $ 1,851 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 in which it has significant business operations, such as New York. The Firm is currently at various levels of field examination with respect to audits by the IRS, as well as New York State and New York City, for tax years 2009-2012 and 2007-2013, respectively. The Firm believes that the resolution of these tax matters will not have a material effect on the consolidated balance sheets, although a resolution could have a material impact on the consolidated income statements for a particular future period and the effective tax rate for any period in which such resolution occurs. In April 2016, the Firm received a notification from the IRS that the Congressional Joint Committee on Taxation approved the final report of an Appeals Office review of matters from tax years 1999-2005, and the Revenue Agent’s Report reflecting agreed closure of the 2006-2008 tax years. The Firm has reserved the right to contest certain items, associated with tax years 1999-2005, the resolution of which is not expected to have a material impact on the effective tax rate or the consolidated financial statements. During 2017, the Firm expects to reach a conclusion with the U.K. tax authorities on substantially all issues through tax year 2010, the resolution of which is not expected to have a material impact on the effective tax rate or the consolidated financial statements. The Firm has established a liability for unrecognized tax benefits that it believes is adequate in relation to the potential for additional assessments. Once established, the Firm adjusts liabilities for unrecognized tax benefits only when new information is available or when an event occurs necessitating a change. The Firm periodically evaluates the likelihood of assessments in each taxing jurisdiction resulting from the expiration of the applicable statute of limitations or new information regarding the status of current and subsequent years’ examinations. As part of the Firm’s periodic review, federal and state unrecognized tax benefits were released or remeasured . It is reasonably possible that significant changes in the balance of unrecognized tax benefits may occur within the next 12 months related to certain tax authority examinations referred to herein. At this time, however, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits and the impact on the Firm’s effective tax rate over the next 12 months. Earliest Tax Year Subject to Examination in Major Tax Jurisdictions Jurisdiction Tax Year U.S. 1999 New York State and New York City 2007 Hong Kong 2010 U.K. 2010 Japan 2013 Income from Continuing Operations before Income Tax Expense (Benefit) $ in millions 2016 2015 2014 U.S. $ 5,694 $ 5,360 $ 1,805 Non-U.S. 1 3,154 3,135 1,786 $ 8,848 $ 8,495 $ 3,591 1. Non-U.S. income is defined as income generated from operations located outside the U.S. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment And Geographic Information | 21 . Segment and Geographic 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 a nd 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 allocated based upon the Firm’s allocation methodologies, generally based on each business segment’s respective net revenues, non-interest expenses or other relevant measures. As a result of revenues and expenses from transactions with other operating segments being treated as transactions with external parties, the Firm includes an Intersegment Eliminations category to reconcile the business segment results to the consolidated results . Selected Financial Information by Business Segment 2016 $ in millions Institutional Securities 1, 2 Wealth Management 2 Investment Management 3 Intersegment Eliminations Total Total non-interest revenues $ 17,294 $ 11,821 $ 2,108 $ (290) $ 30,933 Interest income 4,005 3,888 5 (882) 7,016 Interest expense 3,840 359 1 (882) 3,318 Net interest 165 3,529 4 — 3,698 Net revenues $ 17,459 $ 15,350 $ 2,112 $ (290) $ 34,631 Income from continuing operations before income taxes $ 5,123 $ 3,437 $ 287 $ 1 $ 8,848 Provision for income taxes 4 1,318 1,333 75 — 2,726 Income from continuing operations 3,805 2,104 212 1 6,122 Income (loss) from discontinued operations, net of income taxes (1) — 2 — 1 Net income 3,804 2,104 214 1 6,123 Net income (loss) applicable to noncontrolling interests 155 — (11) — 144 Net income applicable to Morgan Stanley $ 3,649 $ 2,104 $ 225 $ 1 $ 5,979 2015 $ in millions Institutional Securities 1 Wealth Management Investment Management 3 Intersegment Eliminations Total Total non-interest revenues $ 17,800 $ 12,144 $ 2,331 $ (213) $ 32,062 Interest income 3,190 3,105 2 (462) 5,835 Interest expense 3,037 149 18 (462) 2,742 Net interest 153 2,956 (16) — 3,093 Net revenues $ 17,953 $ 15,100 $ 2,315 $ (213) $ 35,155 Income from continuing operations before income taxes $ 4,671 $ 3,332 $ 492 $ — $ 8,495 Provision for income taxes 4 825 1,247 128 — 2,200 Income from continuing operations 3,846 2,085 364 — 6,295 Income (loss) from discontinued operations, net of income taxes (17) — 1 — (16) Net income 3,829 2,085 365 — 6,279 Net income applicable to noncontrolling interests 133 — 19 — 152 Net income applicable to Morgan Stanley $ 3,696 $ 2,085 $ 346 $ — $ 6,127 2014 $ in millions Institutional Securities 1, 5 Wealth Management Investment Management 3 Intersegment Eliminations Total Total non-interest revenues 6 $ 17,463 $ 12,549 $ 2,728 $ (200) $ 32,540 Interest income 3,389 2,516 2 (494) 5,413 Interest expense 3,981 177 18 (498) 3,678 Net interest (592) 2,339 (16) 4 1,735 Net revenues $ 16,871 $ 14,888 $ 2,712 $ (196) $ 34,275 Income (loss) from continuing operations before income taxes $ (58) $ 2,985 $ 664 $ — $ 3,591 Provision for (benefit from) income taxes 4 (90) (207) 207 — (90) Income from continuing operations 32 3,192 457 — 3,681 Income (loss) from discontinued operations, net of income taxes (19) — 5 — (14) Net income 13 3,192 462 — 3,667 Net income applicable to noncontrolling interests 109 — 91 — 200 Net income (loss) applicable to Morgan Stanley $ (96) $ 3,192 $ 371 $ — $ 3,467 In 2016, in accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , unrealized DVA gains (losses) are recorded within OCI and, when realized, in Trading revenues. In 2015 and in 2014, the realized and unrealized DVA gains (losses) are recorded in Trading revenues. See Notes 2 and 15 for further information. Effective July 1, 2016, the Institutional Securities and Wealth Management business segment s ent ered into an agreement , whereby Institutional Securities assumed management of Wealth Management’s fixed income client-driven trading activities and employees. Institutional Securities now pays fees to Wealth Management based on distribution activity (collectively, the “Fixed Income Integration”). Prior periods have not been recast for this new inter segment agreement due to immateriality. The Firm waives a portion of its fees from certain registered money market funds that comply with the requirements of Rule 2a-7 of the Investment Company Act of 1940. These fee waivers resulted in a reduction of fees of approximately $ 91 million for 2016, $ 197 million for 2015 and $ 195 million for 2014. The Firm’s effective tax rate from continuing operations in cluded net discrete tax benefit s of $ 68 million in 201 6, primarily within Institutional Securities . The Firm’s effective tax rate from continuing operations included net discrete tax benefits of $ 564 million in 2015 within Institutional Securities . The Firm’s ef fective tax rate from continuing operatio ns included net discrete tax benefit s of $ 1,390 million and $ 839 million in 2014 within Wealth Management and Institutional Securities business segments, respectively (see Note 20). The Institutional Securities busi ness segment Net loss in 2014 was primarily driven by higher legal expenses (see Note 12). In September 2014, the Firm sold a retail property space resulting in a gain on sale of $ 141 million (within Institutional Securities $ 84 million, Wealth Management $ 40 million and Investment Management $ 17 million), which was included within Other revenues on the consolidated income statements. Total Assets by Business Segment At December 31, At December 31, $ in millions 2016 2015 Institutional Securities $ 629,149 $ 602,714 Wealth Management 181,135 179,708 Investment Management 1 4,665 5,043 Total 2 $ 814,949 $ 787,465 During 2 015, the Firm deconsolidated approximately $ 244 million in net assets previously attributable to nonredeemable noncontrolling interests that were primarily related to or associated with real estate funds sponsored by the Firm (see Note 13). Corporate assets have been fully allocated to the business segments. Geographic Information 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-Pacific 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: advisory and equity underwriting—client location, debt underwriting—revenue recording location, sales and trading—trading desk location. Wealth Management: Weal th Management representatives operate in the Americas. Investment Management: client location, except certain closed-end funds, which are based on asset location . Net Revenues by Region $ in millions 2016 2015 2014 Americas $ 25,487 $ 25,080 $ 25,140 EMEA 4,994 5,353 4,772 Asia-Pacific 4,150 4,722 4,363 Net revenues $ 34,631 $ 35,155 $ 34,275 Total Assets by Region At December 31, 2016 At December 31, 2015 $ in millions Americas $ 581,750 $ 569,369 EMEA 158,819 146,177 Asia-Pacific 74,380 71,919 Total $ 814,949 $ 787,465 |
Parent Company
Parent Company | 12 Months Ended |
Dec. 31, 2016 | |
Parent Company | |
Parent Company | 22. Parent Company Parent Company Only — Condensed Income Statements and Comprehensive Income $ in millions 2016 2015 2014 Revenues Dividends from non-bank subsidiaries $ 2,448 $ 4,942 $ 2,641 Trading 96 574 601 Investments — — (1) Other 38 53 10 Total non-interest revenues 2,582 5,569 3,251 Interest income 3,008 3,055 2,594 Interest expense 4,036 4,073 3,970 Net interest (1,028) (1,018) (1,376) Net revenues 1,554 4,551 1,875 Non-interest expenses Non-interest expenses 126 (195) 214 Income before income taxes 1,428 4,746 1,661 Provision for (benefit from) income taxes (383) (83) (423) Net income before undistributed gain of subsidiaries 1,811 4,829 2,084 Undistributed gain of subsidiaries 4,168 1,298 1,383 Net income 5,979 6,127 3,467 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments (23) (300) (397) Change in net unrealized gains (losses) on AFS securities (269) (246) 209 Pensions, postretirement and other (100) 138 33 Change in net DVA (283) — — Comprehensive income $ 5,304 $ 5,719 $ 3,312 Net income $ 5,979 $ 6,127 $ 3,467 Preferred stock dividends and other 471 456 315 Earnings applicable to Morgan Stanley common shareholders $ 5,508 $ 5,671 $ 3,152 Parent Company Only — Condensed Balance Sheets At December 31, At December 31, $ in millions, except share data 2016 2015 Assets Cash and due from banks $ 119 $ 5,169 Deposits with banking subsidiaries 3,600 4,311 Interest bearing deposits with banks — 2,421 Trading assets at fair value 139 354 Securities purchased under agreement to resell with affiliates 57,906 47,060 Advances to subsidiaries: Bank and bank holding company 28,186 18,380 Non-bank 95,684 106,192 Equity investments in subsidiaries: Bank and bank holding company 34,329 25,787 Non-bank 31,246 34,927 Other assets 4,613 6,259 Total assets $ 255,822 $ 250,860 Liabilities Short-term borrowings $ 1 $ 40 Trading liabilities at fair value 49 138 Payables to subsidiaries 26,957 29,220 Other liabilities and accrued expenses 2,040 2,189 Long-term borrowings 150,725 144,091 Total liabilities 179,772 175,678 Commitments and contingent liabilities (see Note 12) - Equity Preferred stock (see Note 15) 7,520 7,520 Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,852,481,601 and 1,920,024,027 20 20 Additional paid-in capital 23,271 24,153 Retained earnings 53,679 49,204 Employee stock trusts 2,851 2,409 Accumulated other comprehensive income (loss) (2,643) (1,656) Common stock held in treasury at cost, $0.01 par value (186,412,378 and 118,869,952) (5,797) (4,059) Common stock issued to employee stock trusts (2,851) (2,409) Total shareholders' equity 76,050 75,182 Total liabilities and equity $ 255,822 $ 250,860 Parent Company Only—Condensed Cash Flow Statements $ in millions 2016 2015 2014 Cash flows from operating activities Net income $ 5,979 $ 6,127 $ 3,467 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Undistributed gain of subsidiaries (4,168) (1,298) (1,383) Other operating activities 1,367 1,084 1,176 Changes in assets and liabilities (212) (3,195) 2,305 Net cash provided by operating activities 2,966 2,718 5,565 Cash flows from investing activities Advances to and investments in subsidiaries (2,502) 1,364 (7,790) Securities purchased under agreement to resell with affiliates (10,846) (5,459) (7,853) Net cash used for investing activities (13,348) (4,095) (15,643) Cash flows from financing activities Net proceeds from (payments for) short-term borrowings (39) (655) 189 Proceeds from: Excess tax benefits associated with stock-based awards 61 211 101 Issuance of preferred stock, net of issuance costs — 1,493 2,782 Issuance of long-term borrowings 32,795 28,575 33,031 Payments for: Long-term borrowings (24,754) (22,803) (28,917) Repurchases of common stock and employee tax withholdings (3,933) (2,773) (1,458) Cash dividends (1,746) (1,455) (904) Other financing activities 66 — — Net cash provided by financing activities 2,450 2,593 4,824 Effect of exchange rate changes on cash and cash equivalents (250) (65) (208) Net increase (decrease) in cash and cash equivalents (8,182) 1,151 (5,462) Cash and cash equivalents, at beginning of period 11,901 10,750 16,212 Cash and cash equivalents, at end of period $ 3,719 $ 11,901 $ 10,750 Cash and cash equivalents include: Cash and due from banks $ 119 $ 5,169 $ 5,068 Deposits with banking subsidiaries 3,600 4,311 4,556 Interest bearing deposits with banks — 2,421 1,126 Cash and cash equivalents, at end of period $ 3,719 $ 11,901 $ 10,750 Supplemental Disclosure of Cash Flow Information Cash payments for interest were $ 3,650 million , $ 3,959 million and $ 3,652 million for 2016 , 2015 and 2014 , respectively. Cash payments fo r income taxes, net of refunds, were $ 201 million , $ 255 million and $ 187 million for 2016 , 2015 and 2014 , respectively. Transactions with Subsidiaries The Parent Company has transactions with its consolidated subsidiaries determined on an agreed-upon basis and has guaranteed certain unsecured lines of credit and contractual obligations on certain of its consolidated subsidiaries. Parent Company’s Long-Term Borrowings At At December 31, December 31, $ in millions 2016 2015 Senior debt $ 140,422 $ 130,817 Subordinated debt 10,303 13,274 Total $ 150,725 $ 144,091 Guarantees In the normal course of its business, the Parent Company guarantees certain of its subsidiaries’ obligations under derivative and other financial arrangements. The Parent Company records Trading assets and Trading liabilities, which include derivative contracts, at fair value on its condensed 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 with holding 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 applicab le 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 cont racts 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 Co mpany 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. The Parent Company guarantees certain debt instruments and warrants issued by subsidiaries. The debt instruments and warrants totaled $ 11.5 billion and $ 9.1 billion at December 31, 2016 and December 31, 2015 , respectively. In connection with subsidiary lease obligations, the Parent Company has issued guarantees to various lessors. The Parent Company had $ 1.1 billion of guarantees outstanding under subsidiary lease obligations, primarily in the U.K., at both December 31, 2016 and December 31, 2015. Finance Subsidiary The Parent Company fully a nd unconditionally guarantees the securities issued by Morgan Stanley Finance LLC, a 100%-owned finance subsidiary. Resolution and Recovery Planning At December 31, 2016, Advances to subsidiaries that met certain criteria were pledged to certain subsidiaries. |
Quarterly Results
Quarterly Results | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Results | |
Quarterly Results (Unaudited) | 23. Quarterly Results (Unaudited) 2016 Quarter 1 2015 Quarter 1 $ in millions, except per share data First Second Third Fourth 2, 3 First 4 Second Third Fourth 5 Total non-interest revenues $ 6,893 $ 7,996 $ 7,906 $ 8,138 $ 9,311 $ 9,045 $ 7,005 $ 6,701 Net interest 899 913 1,003 883 596 698 762 1,037 Net revenues 7,792 8,909 8,909 9,021 9,907 9,743 7,767 7,738 Total non-interest expenses 6,054 6,426 6,528 6,775 7,052 7,016 6,293 6,299 Income from continuing operations before income taxes 1,738 2,483 2,381 2,246 2,855 2,727 1,474 1,439 Provision for income taxes 578 833 749 566 387 894 423 496 Income from continuing operations 1,160 1,650 1,632 1,680 2,468 1,833 1,051 943 Income (loss) from discontinued operations (3) (4) 8 — (5) (2) (2) (7) Net income 1,157 1,646 1,640 1,680 2,463 1,831 1,049 936 Net income applicable to noncontrolling interests 23 64 43 14 69 24 31 28 Net income applicable to Morgan Stanley $ 1,134 $ 1,582 $ 1,597 $ 1,666 $ 2,394 $ 1,807 $ 1,018 $ 908 Preferred stock dividends and other 79 157 79 156 80 142 79 155 Earnings applicable to Morgan Stanley common shareholders $ 1,055 $ 1,425 $ 1,518 $ 1,510 $ 2,314 $ 1,665 $ 939 $ 753 Earnings (loss) per basic common share 6 : Income from continuing operations $ 0.56 $ 0.77 $ 0.82 $ 0.84 $ 1.21 $ 0.87 $ 0.49 $ 0.40 Income (loss) from discontinued operations — (0.01) 0.01 — (0.01) — — — Earnings per basic common share $ 0.56 $ 0.76 $ 0.83 $ 0.84 $ 1.20 $ 0.87 $ 0.49 $ 0.40 Earnings (loss) per diluted common share 6 : Income from continuing operations $ 0.55 $ 0.75 $ 0.80 $ 0.81 $ 1.18 $ 0.85 $ 0.48 $ 0.39 Income (loss) from discontinued operations — — 0.01 — — — — — Earnings per diluted common share $ 0.55 $ 0.75 $ 0.81 $ 0.81 $ 1.18 $ 0.85 $ 0.48 $ 0.39 Dividends declared per common share 7 $ 0.15 $ 0.15 $ 0.20 $ 0.20 $ 0.10 $ 0.15 $ 0.15 $ 0.15 Book value per common share $ 35.34 $ 36.29 $ 37.11 $ 36.99 $ 33.80 $ 34.52 $ 34.97 $ 35.24 1. In 2016, in accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , unrealized DVA gains (losses) are recorded within OCI and , when realized , in Trading revenues. In 2015, the realized and unrealized DVA gains (losses) were recorded in Trading revenues. 2. The fourth quarter of 2016 included net discrete tax benefits of $ 135 million, primarily related to the remeasurement of reserves and related interest d ue to new information regarding the status of a multi-year tax authority examination (see Note 20). 3. During the fourth quarter of 2016, net revenues included losses of approximately $ 60 million on sales and markdowns of legacy limited partnership inve stments in third-party-sponsored funds within the Investment Management business segment. The fourth quarter of 2016 also included a $ 70 million provision within the Wealth Management business segment related to certain brokerage service reporting activities . 4. The first quarter of 2015 included net discrete tax benefits of $ 564 million, primarily associated with the repatriation of non-U.S. earnings at a cost lower than originally estimated due to an internal restructuring to simplify the Firm ’s legal entit y organization in the U.K. (see Note 20). 5 . During the fourth quarter of 2015, the Firm incurred specific severance costs of approximately $ 155 million, which is included in Compensation and benefits expenses in the consolidated income statements, associated with the Firm’s restructuring actions, which were recorded in the business segments, approximately, as follows: Institutional Securities: $ 125 million, Wealth Management: $ 20 million and Investment Management: $ 10 million. 6 . Summati on 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. 7 . Beginning with the dividend declared on July 20, 201 6 , the Firm increased the q uarterly common stock dividend to $ 0.20 per share from $0.15 per share. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events | |
Subsequent Events | 24 . Subsequent Events The Firm has evaluated subsequent events for adjustment to or disclosure in the consolidated financial statements through the date of this report and has not identified any recordable or disclosable events, not otherwise reported in these consolidated financial statements or the notes thereto . |
Significant Accounting Polici32
Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies | |
Revenue Recognition | Revenue Recognition Investment Banking Underwriting revenues and advisory fees from mergers, acquisitions and restructuring transactions are recorded when services for the transactions are determined to be substantially completed, generally as set forth under the terms of the engagement. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same period as the related investment banking transaction revenues. Underwriting revenues are presented net of related expenses. Non-reimbursed expenses associated with advisory transactions are recorded within Non-interest expenses. Commissions and Fees Comm ission and fee revenues are recognized on trade date. Commission and fee revenues primarily arise from agency transactions in listed and over-the-counter (“OTC”) equity securities; services related to sales and trading activities; and sales of mutual funds , futures, insurance products and options. Asset Management, Distribution and Administration Fees Asset management, distribution and administration fees are recognized over the relevant contract period. Sales commissions paid by the 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. The Firm periodically tests deferred commission assets for recoverability based on cash flows expected to be receive d in future periods. In certain management fee arrangements, the Firm is entitled to receive performance-based fees (which also may be referred to as incentive fees and which include carried interest) when the return on assets under management exceeds certain benchmark returns or other performance targets. In such arrangements, performance fee revenues are accrued (or reversed) quarterly based on measuring account or fund performance to date versus the performance benchmark stated in the investment mana gement agreement. Performance-based fees are recorded within Investments or Asset management, distribution and administration fees depending on the nature of the arrangement. The Firm’s portion of the unrealized cumulative amount of performance-based fee revenues (for which the Firm is not obligated to pay compensation) at risk of reversing if fund performance falls below stated investment management agreement benchmarks was approximately $ 397 million and $ 422 million at December 31, 2016 and December 31, 2015, respectively. See Note 12 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Instruments within Trading assets and Trading liabilities are measured at fair value, either in accordance with accounting guidance or through the fair value option election (discussed below). These financial instruments primarily represent the Firm’s trading and investment position s and include both cash and derivative products. In addition, debt securities classified as available-for-sale (“AFS”) securities are measured at fair value. Gains and losses on instruments carried at fair value are reflected in Trading revenues , Invest ments revenues or Investment banking revenues in the consolidated income statements, except for AFS securities (see “ Investment Securities —Available for Sale and Held to Maturity ” section herein and Note 5) and derivatives accounted for as hedges (see “Hedge Accounting” section herein and Note 4). Interest income and interest expense are recorded within the consolidated income statements depending on the nature of the instrument and related market conventions. When interest is included as a comp onent 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 depend ing on the business activity. The fair value of OTC financial instruments, including derivative contracts related to financial instruments and commodities, is presented in the accompanying consolidated 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 Va lue Option The fair value option permits the irrevocable fair value option election at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. The Firm applies the fair value opti on for eligible instruments, including certain Securities purchased under agreements to resell, loans and lending commitments, equity method investments, Deposits (struct ured certificate of deposits), S hort-term borrowings ( primarily structured notes), Sec urities sold under agreements to repurchase, Other secured financings and Long-term borrowings (primarily structured notes). Fair Value Measurement—Definition and Hierarchy Fair value is defined as the price that would be received to sell an asset o r paid to transfer a liability ( i.e. , the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Firm uses various valuation approaches and establishes a hierarchy for inputs used in m easuring fair value that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable 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 lia bility that are developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: Level 1. Valuations based on quoted prices in active markets that the Firm has the ability to access for identical assets or liabilities. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in a n 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, eithe r 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, for example, the type of product, whether the product is new and not yet established in the marketplace, the liquidity of markets and other characteristics particular to the product. To the extent that valuation is based on models or in puts 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 t he 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 i nstruments. 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 (see Note 3). In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measur ement in its entirety. For assets and liabilities that are transfe rred between l evels in the fair value hierarchy during the period, fair values are ascribed as if the assets or liabilities had been transferred as of the beginning of the period. Valuat ion Technique s 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 meet 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 ap plicable, 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. Adjustments for liquidity risk adjust model-derived mid-market levels of Level 2 and Level 3 financial instruments for t he 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 short-term and long-term borrowings (primarily structured notes) for which the fair va lue 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 short-term and long-term 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 app lies market-based default probabilities to the future exposure, leveraging external third-party credit default swap (“CDS”) spread data. Where CDS spread data are unavailable for a specific counterparty, bond market spreads, CDS spread data based on the co unterparty’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 adjustment s are derived by making assessments of the possible degree of variability using statistical approaches and market-based information where possible. The Firm may apply a concentration adjustment to certain of its OTC derivatives portfolios to reflect the additional cost of closing out a particularly large risk exposure. Where possible, these adjustments are based on observable market information, but in many instances, significant judgment is required to estimate the costs of closing out concentrated risk exposures due to the lack of liquidity in the marketplace. T he Firm applies funding valuation adjustments (“ FVA ”) into the fair value measurements of OTC uncollateralized or parti ally collateralized derivatives and in collateralized derivatives where the terms of the agreement do not permit the reuse of the collateral received. The Firm ’s implementation of FVA reflects the inclusion of FVA in the pricing and valuations by the majority of mark et participants involved in its principal exit market for these instruments. In general, FVA reflects a market funding risk premium inherent in the noted derivative instruments. The methodology for measuring FVA leverages the Firm ’s existing credit-related valuation adjustment calculation methodologies, which apply to both assets and liabilities. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, assumptions are set to ref lect 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 and financial liabilities 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. See Note 3 for a description of valuation techniques applied t o the major categories of financial instruments measured at fair value. Assets and Liabilities Measured at Fai r 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 no n-recurring basis, fair value is determined by using various valuation approaches. The same hierarchy for inputs as described above, which maximizes the use of observable inputs and minimizes the use of unobservable inputs by generally requiring that the o bservable inputs be used when available, is used in measuring fair value for these items. Valuation Process The Valuation Review Group (“VRG”) within the Firm’s Financial Control Group (“FCG”) is responsible for the Firm’s fair value valuation policies, processes and procedures. VRG is independent of the business units and reports to the Chief Financial Officer (“CFO”), who has final authority over the valuation of the Firm’s financial instruments. VRG implements valuation control processes desi gned to validate the fair value of the Firm’s financial instruments measured at fair value, including those derived from pricing models. Model Review. VRG, in conjunction with the Model Risk Management Department (“MRM”), which reports to the Chief R isk Officer, independently review valuation models’ theoretical soundness, the appropriateness of the valuation methodology and calibration techniques developed by the business units using observable inputs. Where inputs are not observable, VRG reviews the appropriateness of the proposed valuation methodology to determine that it is consistent with how a market participant would arrive at the unobservable input. The valuation methodologies utilized in the absence of observable inputs may include extrapolati on techniques and the use of comparable observable inputs. As part of the review, VRG develops a methodology to independently verify the fair value generated by the business unit’s valuation models. The Firm generally subjects valuations and models to a re view process initially and on a periodic basis thereafter. Independent Price Verification. The business units are responsible for determining the fair value of financial instruments using approved valuation models and valuation methodologies. Generall y on a monthly basis, VRG independently validates the fair values of financial instruments determined using valuation models by determining the appropriateness of the inputs used by the business units and by testing compliance with the documented valuation methodologies approved in the model review process described above. The results of this independent price verification and any adjustments made by VRG to the fair value generated by the business units are presented to management of the Firm’s three busi ness segments ( i.e., Institutional Securities, Wealth Management and Investment Management), the CFO and the Chief Risk Officer on a regular basis. VRG uses recently executed transactions, other observable market data such as exchange data, broker-dealer quotes, third-party pricing vendors and aggregation services for validating the fair value of financial instruments generated using valuation models. VRG assesses the external sources and their valuation methodologies to determine if the external provider s meet the minimum standards expected of a third-party pricing source. Pricing data provided by approved external sources are evaluated using a number of approaches; for example, by corroborating the external sources’ prices to executed trades, by analyzin g the methodology and assumptions used by the external source to generate a price , and/or by evaluating how active the third-party pricing source (or originating sources used by the third-party pricing source) is in the market. Based on this analysis, VRG generates a ranking of the observable market data designed to ensure that the highest-ranked market data source is used to validate the business unit’s fair value of financial instruments. VRG reviews the models and valuation methodology used to price new material Level 2 and Level 3 transactions, and both FCG and MR M must approve the fair value of the trade that is initially recognized. Level 3 Transactions. VRG reviews the business unit’s valuation techniques to assess whether these are consistent w ith market participa n t assumptions. 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 righ ts and obligations under the agreement and to liquidate and set off collateral against any net amount owed by the counterparty. However, in certain circumstances, the Firm may not have such an agreement in place; the relevant insolvency regime may not su pport 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 re lated amounts are not offset in the tabular disclosures (see Note 4). 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 mast er 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 e nforceability 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 col lateralized transactions, see Notes 4 and 6 , 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 fair value of assets and liabilities due to the ris k 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 Tradin g assets—Derivative and other contracts or Trading liabilities—Derivative and other contracts in the consolidated 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 primarily of interest rate swaps designated as fair value hedges of changes in the benchmark interest rate of fixed rate senior long-term borrowings. The Firm uses regression analy sis 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 val ue of the hedged item (debt liability) 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 its own credit spreads and counterparty credit spreads to determine whether they would cause the hedging relationship to be ineffective. For qualifying fair value hedges of benchmark interest rates, the changes in the fair value of the derivative and the changes in the fair value of the hedged liability provide offset of one another and, together with any resulting ineffectiveness, are recorded in Interest expense. When a derivative is de-designated as a hedge, any basis adjustment remaining on the hedged liability is amortized to Interest expense over the remaining lif e of the 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 non-U.S. dollar functional currency operations . To the extent that the notional amounts of the hedging instruments equal the portion of the investments being hedged and the underlying exchange rate of the derivative hedging instrument relates to the exchange rate between the functional currency of the investee and the Parent Company's functional currency, no hedge ineffectiveness is recognized in earnings. If these exchange rates are not the same, the Firm uses regression analysis to assess the prospective and retrospective effectiveness of the hedge r elationships, and any ineffectiveness is recognized in Interest income. The gain or loss from revaluing hedges of net investments in foreign operations at the spot rate is reported within AOCI . The forward points on the hedging instruments are excluded fro m hedge effectiveness testing and are recorded in Interest income. For further information on derivative instruments and hedging activities, see Note 4. |
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-o ffs, 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 re cognized 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 estimates probable losses related to loans specifically identified for impairment in addition to the probable losses inherent in the held for investment loan portfolio. The Firm utilizes the U.S. banking regulators’ definition of criticized exposures, which consist of the special mention substandard, doubtful and loss categories as credit quality indicators. For further information on the credit indicators, see Note 7. Substandard loans are regularl y 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 dep ends 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 allowanc e component of the allowance for loan losses is used to estimate probable losses for non-homogeneous exposures that have been specifically identified for impairment analysis by the 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 as a practical expedient, the observable market price of the loan or the fair value of the collateral if the loan is collateral dependent. If the present value of the expected future cash flows (or alternatively, the observable market price of the loan or the fair value of the collateral) is less than the recorded investment in the loan, then the Firm recogn izes an allowance and a charge to the provision for loan losses within Other revenues. The inherent allowance component of the allowance for loan losses is used to estimate the probable losses inherent in the loan portfolio and includes non-homogeneou s loans that have not been identified as impaired and portfolios of smaller balance homogeneous loans. The Firm maintains methodologies by loan product for calculating an allowance for loan losses that estimates the inherent losses in the loan portfolio. G enerally, inherent losses in the portfolio for non-impaired loans are estimated using statistical analysis and judgment around the exposure at default, the probability of default and the loss given default. Qualitative and environmental factors such as eco nomic and business conditions, nature and volume of the portfoli o , and lending ter ms and volume and severity of past due loans may also be considered in the calculations. The allowance for loan losses is maintained at a level reasonable to ensure that it ca n adequately absorb the estimated probable losses inherent in the portfolio. The Firm recognizes an allowance and 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 troubled debt restructurings (“TDRs”). A loan that has been modified in a TDR is generally considered to be impaired and is evaluated for the extent of impairment using the Firm ’s specific allowance methodology. TDRs are also generally classified as nonaccrual and may only be returned to accrua l status 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 principa l 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. Loans classified as Doubtful or Loss are categorized as nonaccrual. Payments received on nonaccrual loans held for investment are applied to principal if there is doubt regarding the ultim ate collectability of principal ( i.e ., cost recovery method). If collection of the principal of nonaccrual loans held for investment is not in doubt, interest income is recognized on a cash basis. If neither principal nor interest collection is in doubt, l oans are on accrual status, and interest income is recognized using the effective interest method. Loans that are on nonaccrual status may not be restored to accrual status until all delinquent principal and/or interest has been brought current after a rea sonable 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 a s uncollectible, and is therefore deemed a confirmed loss, is charged off against the allowance for loan losses. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the sale or operation of the underlying collat eral. 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 Commitm ents. 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 disclosed above. The analysis also incorporates a credit conv ersion factor, which is the expected utilization of the undrawn commitment. The liability is recorded in Other liabilities and accrued expenses in the consolidated balance sheets , and the expense is recorded in Other non-interest expenses in the consolidated income statements. For more information regarding loan commitments, standby letters of credit and financial guarantees, see Note 12. Loans Held for Sale Loans held for sale are measured at the lower of cost or fair value, with valuati on 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 bel ow the initial carrying amount and any recoveries in fair value up to the initial carrying amount are recorded in Other revenues. However, increases in fair value above initial 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 in a contra loan account until the related loan is sold. The deferred fees or costs and discounts or pre miums are an adjustment to the basis of the loan and, therefore, are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Lending Commitments . Commitments to fund n on-mortgage loans held for sale are not derivatives. The Firm records the liability and related expense for the fair value exposure (if the fair value is below the cost) related to commitments to fund non-mortgage loans that will be held for sale in Other liabilities and accrued expenses in the consolidated balance sheets with an offset to Other r evenue s in the consolidated income statements. Commitments to fund mortgage loans held for sale are derivatives. The Firm records the derivative asset or liability exposure in Trading assets or Trading liabilities in the consolidated balance sheets with an offset to Trading revenues in the consolidated income statements. Loans and lending commitments held for sale are subject to the nonaccrual policies described a bove. 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 mea sured at fair value. The liability is recorded in Trading liabilities in the consolidated balance sheets, and the expense is recorded in Trading revenues in the consolidated income statements. For further information on loans, see Note 7. |
Transfer of Financial Assets | Trans fers 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 s ales are treated as a collateralized financing, in certain cases referred to as “failed sales.” Securities borrowed or purchased under agreements to resell and securities loaned or sold under agreements to repurchase are treated as collateralized financing s (see Note 6). Securities purchased under agreements to resell (“reverse repurchase agreements”) and Securities sold under agreements to repurchase (“repurchase agreements”) are carried on the consolidated balance sheets at the amounts of cash paid or received, plus accrued interest, except for certain repurchase agreements for which the Firm has elected the fair value option (see Note 3). Where appropriate, repurchase agreements and reverse repurchase agreements with the same counterparty ar e reported on a net basis. Securities borrowed and securities loaned are recorded at the amount of cash collateral advanced or received. |
Premises, Equipment and Software Costs | Premises, Equipment and Software Costs Premises, equipment and software costs consist of buildings, leasehold imp rovements, furniture, fixtures, computer and communications equipment, power generation assets, terminals , pipelines and software (externally purchased and developed for internal use). Premises, equipment and software costs are stated at cost less accumula ted depreciation and amortization and are included in Other assets in the consolidated balance sheets. Depreciation and amortization are provided by the straight-line method over the estimated useful life of the asset. Estimated useful lives are generally as follows: buildings—39 years; furniture and fixtures—7 years; computer and communications equipment—3 to 9 years; power generation assets—15 to 29 years; and terminals, pipelines and equipment—3 to 30 years. Estimated useful lives for software costs are generally 3 to 10 years. Leasehold improvements are amortized over the lesser of the estimated useful life of the asset or, where applicable, the remaining term of the lease but generally not exceeding 25 years for building structural improvements and 15 years for other improvements. Premises, equipment and software costs are tested for impairment whenever events or changes in circumstances suggest that an asset’s carrying value may not be fully recoverable in accordance with current accounting guidanc e. |
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 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 first assess qualitative fact ors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after assessing the totality of events or circumstances, the Firm determines it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then performing the two-step impairment test is not required. However, if the Firm concludes otherwise, then it is required to perf orm the first step of the two-step impairment test. Goodwill impairment is determined by comparing the estimated fair value of a reporting unit with its respective carrying value. If the estimated fair value exceeds the carrying value, goodwill at the re porting unit level is not deemed to be impaired. If the estimated fair value is below carrying value, however, further analysis is required to determine the amount of the impairment. The estimated fair values of the reporting units are derived based on val uation techniques the Firm believes market participants would use for each of the reporting units. The estimated fair values are generally determined by utilizing a discounted cash flow methodology or methodologies that incorporate price-to-book and pri ce-to-earnings multiples of certain comparable companies. Goodwill is not amortized but, as noted above, is reviewed annually (or more frequently when certain events or circumstances exist) for impairment. Other intangible assets are amortized over thei r estimated useful lives and reviewed for impairment. Impairment losses are recorded within Other expenses in the c onsolidated income statements. |
Income Taxes | Income Taxes The Firm accounts for income tax expense (benefit) using the asset and liability method. Under this method, deferred tax assets and liabilities are recorded based upon the temporary differences between the financial statement and income tax bases of assets and lia bilities using currently enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income tax expense (benefit) in the period that includes the enactment date. The 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. If a deferred tax asset is determined to be unrealizable, a valuation allowance is establishe d. If the Firm determines that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxe s. Uncertain tax positions are recorded on the basis of a two-step process, whereby (1) 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 (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Firm recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. Interest and penalties related to unrecognized tax benefits are classified as provision for income taxes. |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share (“EPS”) is computed by dividing earnings available to Morgan Stanley common shareholders by the weighted average number of common shares outstanding for the period. Earnings available to Morgan Stanley common shareholders represents net income applicable to Morgan Stanley reduced by preferred stock dividends and allocations of earnings to participating securities. Common s hares outstanding include common stock and vested restricted stock units (“RSUs”) where recipients have satisfied either the explicit vesting terms or retirement-eligibility requirements. Diluted EPS reflects the assumed conversion of all dilutive securiti es. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of EPS pursuant to the two-class method. Share-bas ed payment awards that pay dividend equivalents subject to vesting are not deemed participating securities and are included in diluted shares outstanding (if dilutive) under the treasury stock method. The Firm has granted performance-based stock units ( “PSUs”) that vest and convert to shares of common stock only if it satisfies predetermined performance and market goals. Since the issuance of the shares is contingent upon the satisfaction of certain conditions, the PSUs are included in diluted EPS based on the number of shares (if any) that would be issuable if the end of the reporting period was the end of the contingency period. For the calculation of basic and diluted EPS, see Note 16. |
Deferred Compensation | Deferred Compensation Stock-Based Compensation The F irm measures compensation cost for stock-based awards at fair value and recognizes compensation cost over the service period, net of estimated forfeitures. The Firm determines the fair value of RSUs (including RSUs with non-market performance conditions) b ased on the grant-date fair value of its common stock, measured as the volume-weighted average price on the date of grant. RSUs with market-based conditions are valued using a Monte Carlo valuation model. The fair value of stock options is determined using the Black-Scholes valuation model and the single grant life method. Under the single grant life method, option awards with graded vesting are valued using a single weighted average expected option life. Compensation expense for stock-based compensation awards is recognized using the graded vesting attribution method. Compensation expense for awards with performance conditions is recognized based on the probable outcome of the performance condition at each reporting date. Compensation expense for awards with market-based conditions is recognized irrespective of the probability of the market condition being achieved and is not reversed if the market condition is not met. The Firm recognizes the expense for stock-based awards over the requisite service period. These awards generally contain clawback and cancellation provisions. Certain awards provide the Firm discretion to 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. For year-end stock-based 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 over the course of the calendar year preceding the grant date. The Firm believes that this method of recognition for retirement-eligible employees reflects the period over which the compensation is earned. Employee Stock Trusts In connection with certain stock-based compensation plans, the Firm maintains and utilizes at its discretion trusts, referred to as “Employee stock trusts .” The assets of the Employee stock trusts are co nsolidated and, as such, are accounted for in a manner similar to treasury stock, where the shares of common stock outstanding are offset by an equal amount in Common stock issued to employee stock trusts. The 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 do not permit diversification and must be settled by the deliv ery 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. For unvested awards, the expense is recognized over the service period using the graded vesting attribution method. For vested awards with only notional earnings on the referenced investments, the expense is fully recognized in the current period. For year-end 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 over the course of the calendar year pr eceding the grant date. The Firm believes that this method of recognition for retirement-eligible employees reflects the period over which the compensation is earned. The Firm often invests directly, as a principal, in investments or other financial instr uments to economically hedge its obligations under its deferred cash-based compensation plans. Changes in value of such investments made by the Firm are recorded in Trading revenues and Investments revenues. Changes in compensation expense resulting from c hanges in the fair value of the referenced investments will generally be offset by changes in the fair value of investments made by the Firm. However, there may be a timing difference between the immediate recognition of gains and losses on the Firm’s inve stments and the deferred recognition of the related compensation expense over the vesting period. |
Foreign Currencies | Foreign Currencies Assets and liabilities of operations having 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, a separate component of Morgan Stanley Shareholders’ equity on the consolidated balance sheets. Gains or losses resulting from remeasurement of foreign currency transactions are included in net income , and amounts recognize d in the income statement are translated at the rate of exchange on the respective date of recognition for each amount. |
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 consolidated balan ce sheets with unrealized gains and losses reported in AOCI , net of tax. Interest and dividend income, including amortization of premiums and accretion of discounts, is included in Interest income in the consolidated income statements. Realized gains and l osses on AFS securities are reported in the consolidated income statements (see Note 5 ). The Firm utilizes the “first-in, first-out” method as the basis for determining the cost of AFS securities. Held-to- maturity (“HTM”) securities are reported at amortized cost in the consolidated balance sheets . Interest income, including amortization of premiums and accretion of discounts on HTM securities , is included in Interest income in the consolidated income state ments. Other-than-temporary I mpairment AFS debt 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 other-than-temporary impairment (“OTTI” ) at the individual security level. A temporary impairment is recognized in AOCI. OTTI is recognized in the consolidated income statements with the exception of the non-credit portion related to a debt 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 debt 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 conside red other-than-temporary. For those AFS debt 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 debt security. If the Firm does not expect to recover the entire amortized cost of those AFS debt securities or HTM securities, the impairment is considered other-than-temporary, and the Firm determines what portion of the impairment relates to a c redit 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 Fir m considers relevant information, including: the length of time and the extent to which the fair value has been less than the amortized cost basis; adverse conditions specifically related to the security, an industry or geographic area; changes in the fi nancial condition of the issuer of the security 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 pay ment 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; any changes to the rating of the securit y 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 includes the remaining payment terms of the security, prepayment speeds, financial c ondition of the issuer(s), expected defaults and the value of any underlying collateral. For AFS equity securities, the Firm considers various factors, including the intent and ability to hold the equity security for a period of time sufficient to allow for any anticipated recovery in market value in evaluating whether an OTTI exists. If the equity security is considered other-than-temporarily impaired, the entire OTTI ( i.e. , the difference between the fair value recorded on the balance sheet and the cos t basis) will be recognized in the consolidated income statements. |
Accounting Standards Adopted | Accounting Standards Adopted The Firm adopted the following accounting updates as of January 1, 2016: Recognition and Measurement of Financial Assets and Financial Liabilities. In January 2016, the Financial Accounting Standards Board (the “FASB”) issued an accounting update that changed the requirements for the recognition and measurement of certain financial assets and financial liabilities. The Firm early adopted the provision in this guidance relating to liabilities measured at fair value pursuant to a fair value option election that requires presenting unrealized DVA in Other comprehensive income (loss) (“OCI”), a change from the previous requirement to present DVA in net income . Realized DVA amounts will be recycled from AOCI to Trading revenues. DVA amounts from periods prior to adoption remain in Trading revenues as previously reported. A cumulative catch-up adjustment, net of noncontrolling interests and tax, of $ 312 million was recorded as of January 1, 2016 to move the cumulative unrealized DVA loss amount from Retained earnings into AOCI. Other provisions of this rule may not be early adopted and will be effective January 1, 2018, but they are not expected to have a material impact on the consolidated financial statements. Amendments to the Consolidation Analysis. In February 2015, the FASB issued an accounting update that provides a new consolidation model for certain entities, such as i nvestment funds and limited partnerships. The Firm adopted this guidance on January 1, 2016 by recording a net adjustment to equity on January 1, 2016. This adoption increased total assets by $ 131 million, reflecting consolidations of $ 206 million , net of deconsolidations of $ 75 million. The consolidations resulted primarily from certain funds in Investment Management where the Firm acts as a general partner. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting At December 31, 2016 $ in millions Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 25,457 $ — $ — $ — $ 25,457 U.S. agency securities 2,122 20,392 74 — 22,588 Total U.S. government and agency securities 27,579 20,392 74 — 48,045 Other sovereign government obligations 14,005 5,497 6 — 19,508 Corporate and other debt: State and municipal securities — 2,355 250 — 2,605 Residential mortgage-backed securities — 767 92 — 859 Commercial mortgage-backed securities — 715 123 — 838 Asset-backed securities — 209 2 — 211 Corporate bonds — 11,051 232 — 11,283 Collateralized debt and loan obligations — 602 63 — 665 Loans and lending commitments 1 — 3,580 5,122 — 8,702 Other debt — 1,360 180 — 1,540 Total corporate and other debt — 20,639 6,064 — 26,703 Corporate equities 2 117,857 333 445 — 118,635 Securities received as collateral 13,717 19 1 — 13,737 Derivative and other contracts: Interest rate contracts 1,131 300,406 1,373 — 302,910 Credit contracts — 11,727 502 — 12,229 Foreign exchange contracts 231 74,921 13 — 75,165 Equity contracts 1,185 35,736 1,708 — 38,629 Commodity and other contracts 2,808 6,734 3,977 — 13,519 Netting 3 (4,378) (353,543) (1,944) (51,381) (411,246) Total derivative and other contracts 977 75,981 5,629 (51,381) 31,206 Investments 4 : Principal investments 20 — 743 — 763 Private equity funds — 43 — — 43 Other 217 154 215 — 586 Total investments 237 197 958 — 1,392 Physical commodities — 112 — — 112 Total trading assets 4 174,372 123,170 13,177 (51,381) 259,338 Investment securities—AFS securities 29,120 34,050 — — 63,170 Securities purchased under agreements to resell — 302 — — 302 Intangible assets — 3 — — 3 Total assets measured at fair value $ 203,492 $ 157,525 $ 13,177 $ (51,381) $ 322,813 Liabilities at Fair Value Deposits $ — $ 21 $ 42 $ — $ 63 Short-term borrowings — 404 2 — 406 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 10,745 — — — 10,745 U.S. agency securities 891 61 — — 952 Total U.S. government and agency securities 11,636 61 — — 11,697 Other sovereign government obligations 20,658 2,430 — — 23,088 Corporate and other debt: State and municipal securities — 1 — — 1 Asset-backed securities — 533 — — 533 Corporate bonds — 5,572 34 — 5,606 Lending commitments — 1 — — 1 Other debt — 14 2 — 16 Total corporate and other debt — 6,121 36 — 6,157 Corporate equities 2 37,611 29 34 — 37,674 Obligation to return securities received as collateral 20,236 25 1 — 20,262 Derivative and other contracts: Interest rate contracts 1,244 285,379 953 — 287,576 Credit contracts — 12,550 875 — 13,425 Foreign exchange contracts 17 75,510 56 — 75,583 Equity contracts 1,162 37,828 1,524 — 40,514 Commodity and other contracts 2,663 6,845 2,377 — 11,885 Netting 3 (4,378) (353,543) (1,944) (39,803) (399,668) Total derivative and other contracts 708 64,569 3,841 (39,803) 29,315 Physical commodities — 1 — — 1 Total trading liabilities 90,849 73,236 3,912 (39,803) 128,194 Securities sold under agreements to repurchase — 580 149 — 729 Other secured financings — 4,607 434 — 5,041 Long-term borrowings 47 36,677 2,012 — 38,736 Total liabilities measured at fair value $ 90,896 $ 115,525 $ 6,551 $ (39,803) $ 173,169 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting At December 31, 2015 $ in millions Assets at Fair Value Trading assets: U.S. government and agency securities: U.S. Treasury securities $ 17,658 $ — $ — $ — $ 17,658 U.S. agency securities 797 17,886 — — 18,683 Total U.S. government and agency securities 18,455 17,886 — — 36,341 Other sovereign government obligations 13,559 7,400 4 — 20,963 Corporate and other debt: State and municipal securities — 1,651 19 — 1,670 Residential mortgage-backed securities — 1,456 341 — 1,797 Commercial mortgage-backed securities — 1,520 72 — 1,592 Asset-backed securities — 494 25 — 519 Corporate bonds — 9,959 267 — 10,226 Collateralized debt and loan obligations — 284 430 — 714 Loans and lending commitments 1 — 4,682 5,936 — 10,618 Other debt — 2,263 448 — 2,711 Total corporate and other debt — 22,309 7,538 — 29,847 Corporate equities 2 106,296 379 433 — 107,108 Securities received as collateral 11,221 3 1 — 11,225 Derivative and other contracts: Interest rate contracts 406 323,586 2,052 — 326,044 Credit contracts — 22,258 661 — 22,919 Foreign exchange contracts 55 64,608 292 — 64,955 Equity contracts 653 38,552 1,084 — 40,289 Commodity and other contracts 3,140 10,873 3,358 — 17,371 Netting 3 (3,840) (380,443) (3,120) (55,562) (442,965) Total derivative and other contracts 414 79,434 4,327 (55,562) 28,613 Investments 4 : Principal investments 20 44 486 — 550 Other 163 310 221 — 694 Total investments 183 354 707 — 1,244 Physical commodities — 321 — — 321 Total trading assets 4 150,128 128,086 13,010 (55,562) 235,662 Investment securities—AFS securities 34,351 32,408 — — 66,759 Securities purchased under agreements to resell — 806 — — 806 Intangible assets — — 5 — 5 Total assets measured at fair value $ 184,479 $ 161,300 $ 13,015 $ (55,562) $ 303,232 Liabilities at Fair Value Deposits $ — $ 106 $ 19 $ — $ 125 Short-term borrowings — 1,647 1 — 1,648 Trading liabilities: U.S. government and agency securities: U.S. Treasury securities 12,932 — — — 12,932 U.S. agency securities 854 127 — — 981 Total U.S. government and agency securities 13,786 127 — — 13,913 Other sovereign government obligations 10,970 2,558 — — 13,528 Corporate and other debt: Commercial mortgage-backed securities — 2 — — 2 Corporate bonds — 5,035 — — 5,035 Lending commitments — 3 — — 3 Other debt — 5 4 — 9 Total corporate and other debt — 5,045 4 — 5,049 Corporate equities 2 47,123 35 17 — 47,175 Obligation to return securities received as collateral 19,312 3 1 — 19,316 Derivative and other contracts: Interest rate contracts 466 305,151 1,792 — 307,409 Credit contracts — 22,160 1,505 — 23,665 Foreign exchange contracts 22 65,177 151 — 65,350 Equity contracts 570 42,447 3,115 — 46,132 Commodity and other contracts 3,012 9,474 2,308 — 14,794 Netting 3 (3,840) (380,443) (3,120) (40,473) (427,876) Total derivative and other contracts 230 63,966 5,751 (40,473) 29,474 Total trading liabilities 91,421 71,734 5,773 (40,473) 128,455 Securities sold under agreements to repurchase — 532 151 — 683 Other secured financings — 2,393 461 — 2,854 Long-term borrowings — 31,058 1,987 — 33,045 Total liabilities measured at fair value $ 91,421 $ 107,470 $ 8,392 $ (40,473) $ 166,810 1. At December 31, 2016 , l oans held at fair value consisted of $ 7,217 million of corporate loans, $ 966 million of residential real estate loans and $ 519 million of wholesale real estat e loans. At December 31, 2015, l oans held at fair value consisted of $ 7,286 million of corporate loans, $ 1,885 million of residential real estate loans and $ 1,447 million of wholesale real estate loans. 2. For trading purposes, the Firm holds or sells short equity securities issued by entities in diverse industries and of varying sizes. 3. For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Counterparty and Cash Collateral Netting.” For contracts with the same counterparty, counterparty netting among positions classified within the same level is included within that shared level. For further information on derivative instrument s and hedging activities, see Note 4. 4. Amounts exclude certain investments that are measured at fair value using the NAV per share, which are not classified in the fair value hierarchy. For additional disclosure about such investments, see “Fair Value of Investments Measured at Net Asset Value” herein . |
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | $ in millions Beginning Balance at December 31, 2015 Realized and Unrealized Gains (Losses) Purchases 1 Sales Issuances Settlements Net Transfers Ending Balance at December 31, 2016 Unrealized Gains (Losses) at December 31, 2016 Assets at Fair Value Trading assets: U.S. agency securities $ — $ (4) $ 72 $ — $ — $ — $ 6 $ 74 $ (4) Other sovereign government obligations 4 1 4 (7) — — 4 6 — Corporate and other debt: State and municipal securities 19 — 249 (18) — — — 250 — Residential mortgage-backed securities 341 (11) 35 (265) — — (8) 92 (10) Commercial mortgage-backed securities 72 (56) 46 (39) — — 100 123 (66) Asset-backed securities 25 (2) 1 (19) — — (3) 2 (1) Corporate bonds 267 9 310 (357) — — 3 232 (20) Collateralized debt and loan obligations 430 11 14 (300) — — (92) 63 (5) Loans and lending commitments 5,936 (79) 2,261 (954) — (1,863) (179) 5,122 (80) Other debt 448 20 26 (51) — — (263) 180 (13) Total corporate and other debt 7,538 (108) 2,942 (2,003) — (1,863) (442) 6,064 (195) Corporate equities 433 (2) 242 (154) — — (74) 445 — Securities received as collateral 1 — — — — — — 1 — Net derivative and other contracts 2 : Interest rate contracts 260 529 1 — — (83) (287) 420 463 Credit contracts (844) (176) — — (4) 623 28 (373) (167) Foreign exchange contracts 141 (27) — — — (220) 63 (43) (23) Equity contracts (2,031) 539 809 (5) (332) 1,073 131 184 376 Commodity and other contracts 1,050 544 24 — (114) (44) 140 1,600 304 Total net derivative and other contracts (1,424) 1,409 834 (5) (450) 1,349 75 1,788 953 Investments: Principal investments 486 (38) 398 (63) — (59) 19 743 (55) Other 221 6 — (12) — — — 215 5 Total investments 707 (32) 398 (75) — (59) 19 958 (50) Intangible assets 5 — — — — — (5) — — Liabilities at Fair Value Deposits $ 19 $ — $ — $ — $ 23 $ — $ — $ 42 $ — Short-term borrowings 1 — — — 2 (1) — 2 — Trading liabilities: Corporate and other debt: Corporate bonds — (4) (97) 145 — — (18) 34 — Other debt 4 — (2) — — — — 2 — Total corporate and other debt 4 (4) (99) 145 — — (18) 36 — Corporate equities 17 17 (10) 89 — — (45) 34 — Obligation to return securities received as collateral 1 — — — — — — 1 — Securities sold under agreements to repurchase 151 2 — — — — — 149 2 Other secured financings 461 (5) — — 79 (45) (66) 434 (5) Long-term borrowings 1,987 (19) — — 646 (304) (336) 2,012 (30) $ in millions Beginning Balance at December 31, 2014 Realized and Unrealized Gains (Losses) Purchases 1 Sales Issuances Settlements Net Transfers Ending Balance at December 31, 2015 Unrealized Gains (Losses) at December 31, 2015 Assets at Fair Value Trading assets: Other sovereign government obligations $ 41 $ (1) $ 2 $ (30) $ — $ — $ (8) $ 4 $ — Corporate and other debt: State and municipal securities — 2 3 — — — 14 19 2 Residential mortgage-backed securities 175 24 176 (83) — — 49 341 12 Commercial mortgage-backed securities 96 (28) 27 (23) — — — 72 (32) Asset-backed securities 76 (9) 23 (30) — — (35) 25 — Corporate bonds 386 (44) 374 (381) — (53) (15) 267 (44) Collateralized debt and loan obligations 1,152 123 325 (798) — (344) (28) 430 (19) Loans and lending commitments 5,874 (42) 3,216 (207) — (2,478) (427) 5,936 (76) Other debt 285 (23) 131 (5) — (81) 141 448 (9) Total corporate and other debt 8,044 3 4,275 (1,527) — (2,956) (301) 7,538 (166) Corporate equities 272 (1) 373 (333) — — 122 433 11 Securities received as collateral — — 1 — — — — 1 — Net derivative and other contracts 2 : Interest rate contracts (173) (51) 58 — (54) 207 273 260 20 Credit contracts (743) (172) 19 — (121) 196 (23) (844) (179) Foreign exchange contracts 151 53 4 — (2) (18) (47) 141 52 Equity contracts (2,165) 166 81 (1) (310) 22 176 (2,031) 62 Commodity and other contracts 1,146 433 35 — (222) (116) (226) 1,050 402 Total net derivative and other contracts (1,784) 429 197 (1) (709) 291 153 (1,424) 357 Investments: Principal investments 835 11 32 (133) — (188) (71) 486 6 Other 323 (12) 1 (6) — — (85) 221 (7) Total investments 1,158 (1) 33 (139) — (188) (156) 707 (1) Intangible assets 6 — — — — (1) — 5 — Liabilities at Fair Value Deposits $ — $ (1) $ — $ — $ 18 $ — $ — $ 19 $ (1) Short-term borrowings — — — — 1 — — 1 — Trading liabilities: Corporate and other debt: Corporate bonds 78 — (19) 6 — (65) — — — Lending commitments 5 5 — — — — — — 5 Other debt 38 — (1) 7 — (39) (1) 4 — Total corporate and other debt 121 5 (20) 13 — (104) (1) 4 5 Corporate equities 45 79 (86) 32 — — 105 17 79 Obligation to return securities received as collateral — — — 1 — — — 1 — Securities sold under agreements to repurchase 153 2 — — — — — 151 2 Other secured financings 149 192 — — 327 (232) 409 461 181 Long-term borrowings 1,934 61 — — 881 (364) (403) 1,987 52 $ in millions Beginning Balance at December 31, 2013 Realized and Unrealized Gains (Losses) Purchases 1 Sales Issuances Settlements Net Transfers Ending Balance at December 31, 2014 Unrealized Gains (Losses) at December 31, 2014 Assets at Fair Value Trading assets: Other sovereign government obligations $ 27 $ 1 $ 48 $ (34) $ — $ — $ (1) $ 41 $ — Corporate and other debt: Residential mortgage-backed securities 47 9 105 (14) — — 28 175 4 Commercial mortgage-backed securities 108 65 16 (102) — — 9 96 45 Asset-backed securities 103 3 66 (96) — — — 76 9 Corporate bonds 522 86 106 (306) — — (22) 386 66 Collateralized debt and loan obligations 1,468 142 644 (964) — (143) 5 1,152 27 Loans and lending commitments 5,129 (87) 3,784 (415) — (2,552) 15 5,874 (191) Other debt 27 21 274 (35) — (2) — 285 20 Total corporate and other debt 7,404 239 4,995 (1,932) — (2,697) 35 8,044 (20) Corporate equities 190 20 146 (102) — — 18 272 (3) Net derivative and other contracts 2, 3 : Interest rate contracts 113 (258) 18 — (14) (43) 11 (173) (349) Credit contracts (147) (408) 68 — (179) (15) (62) (743) (474) Foreign exchange contracts 68 (13) 7 — — 108 (19) 151 (17) Equity contracts (831) (527) 339 (2) (562) (46) (536) (2,165) (600) Commodity and other contracts 876 158 287 — (52) (123) — 1,146 72 Total net derivative and other contracts 79 (1,048) 719 (2) (807) (119) (606) (1,784) (1,368) Investments: Principal investments 2,160 53 36 (181) — (1,258) 25 835 49 Other 538 17 17 (29) — — (220) 323 24 Total investments 2,698 70 53 (210) — (1,258) (195) 1,158 73 Intangible assets 8 — — — — (2) — 6 (1) Liabilities at Fair Value Short-term borrowings $ 1 $ — $ — $ — $ — $ (1) $ — $ — $ — Trading liabilities: Corporate and other debt: Corporate bonds 22 1 (46) 117 — — (14) 78 2 Lending commitments 2 (3) — — — — — 5 (3) Other debt 48 7 (8) — — — 5 38 (2) Total corporate and other debt 72 5 (54) 117 — — (9) 121 (3) Corporate equities 8 — (3) 39 — — 1 45 — Securities sold under agreements to repurchase 154 1 — — — — — 153 1 Other secured financings 278 (9) — — 21 (201) 42 149 (6) Long-term borrowings 1,887 109 — — 791 (391) (244) 1,934 102 Loan originations and consolidations of VIEs are included in purchases . Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts. During 2014, the Firm incurred a charge of approximately $ 468 million related to the implementation of the FVA, which was recognized in Trading revenues. For further information on the implementation of FVA, see Note 2 . |
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements | Valuation Techniques and Sensitivity of Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements Predominant Valuation Techniques/ Significant Unobservable Inputs Range (Weighted Averages or Simple Averages/Median) 1 $ in millions At December 31, 2016 At December 31, 2015 Assets at Fair Value U.S. agency securities ($74 million) Comparable pricing: Comparable bond price 96 to 105 points (102 points) N/M State and municipal securities ($250 million and $19 million) Comparable pricing: Comparable bond price 53 to 100 points (91 points) N/M Predominant Valuation Techniques/ Significant Unobservable Inputs Range (Weighted Averages or Simple Averages/Median) 1 $ in millions At December 31, 2016 At December 31, 2015 Residential mortgage-backed securities ($92 million and $341 million) Comparable pricing: Comparable bond price 0 to 30 points (9 points) 0 to 75 points (32 points) Commercial mortgage-backed securities ($123 million and $72 million) Comparable pricing: Comparable bond price 0 to 86 points (36 points) 0 to 9 points (2 points) Corporate bonds ($232 million and $267 million) Comparable pricing : Comparable bond price 3 to 130 points (70 points) 3 to 119 points (90 points) Option model: At the money volatility 23% to 33% (30%) N/M Comparable pricing : EBITDA multiple N/M 7 to 9 times (8 times) Structured bond model: Discount rate N/M 15% Collateralized debt and loan obligations ($63 million and $430 million) Comparable pricing : Comparable bond price 0 to 103 points (50 points) 47 to 103 points (67 points) Correlation model: Credit correlation N/M 39% to 60% (49%) Loans and lending commitments ($5,122 million and $5,936 million) Corporate loan model: Credit spread 402 to 672 bps (557 bps) 250 to 866 bps (531 bps) Expected recovery: Asset coverage 43% to 100% (83%) N/M Margin loan model : Discount rate 2% to 8% (3%) 1% to 4% (2%) Volatility skew 21% to 63% (33%) 14% to 70% (33%) Credit spread N/M 62 to 499 bps (145 bps) Comparable pricing: Comparable loan price 45 to 100 points (84 points) 35 to 100 points (88 points) Discounted cash flow: Implied weighted average cost of capital 5% 6% to 8% (7%) Capitalization rate 4% to 10% (4%) 4% to 10% (4%) Option model: Volatility skew N/M -1% Other debt ($180 million and $448 million) Option model: At the money volatility 16% to 52% (52%) 16% to 53% (53%) Discounted cash flow: Discount rate 7% to 12% (11%) N/M Comparable pricing: Comparable loan price 1 to 74 points (23 points) 4 to 84 points (59 points) Comparable pricing: Comparable bond price N/M 8 points Margin loan model : Discount rate N/M 1% Corporate equities ($445 million and $433 million) Comparable pricing: Comparable equity price 100% 100% Comparable pricing: Comparable price N/M 50% to 80% (72%) Market approach: EBITDA multiple N/M 9 times Net derivative and other contracts 2 : Interest rate contracts ($420 million and $260 million) Option model : Interest rate - Foreign exchange correlation 28% to 58% (44% / 43%) 25% to 62% (43% / 43%) Interest rate volatility skew 19% to 117% (55% / 56%) 29% to 82% (43% / 40%) Interest rate quanto correlation -17% to 31% (1% / -5%) -8% to 36% (5% / -6%) Interest rate curve correlation 28% to 96% (68% / 72%) 24% to 95% (60% / 69%) Inflation volatility 23% to 55% (40% / 39%) 58% Interest rate - Inflation correlation N/M -41% to -39% (-41% / -41%) Interest rate volatility concentration liquidity multiple N/M 0 to 3 times (2 times) Credit contracts ($(373) million and $(844) million) Comparable pricing: Cash synthetic basis 5 to 12 points (11 points) 5 to 12 points (9 points) Comparable bond price 0 to 70 points (23 points) 0 to 75 points (24 points) Correlation model : Credit correlation 32% to 70% (45%) 39% to 97% (57%) Foreign exchange contracts 3 ($(43) million and $141 million) Option model: Interest rate - Foreign exchange correlation 28% to 58% (44% / 43%) 25% to 62% (43% / 43%) Interest rate volatility skew 34% to 117% (55% / 56%) 29% to 82% (43% / 40%) Interest rate quanto correlation -17% to 31% (1% / -5%) N/M Interest rate curve N/M 0% Equity contracts 3 ($184 million and $(2,031) million) Option model: At the money volatility 7% to 66% (33%) 16% to 65% (32%) Volatility skew -4% to 0% (-1%) -3% to 0% (-1%) Equity - Equity correlation 25% to 99% (73%) 40% to 99% (71%) Equity - Foreign exchange correlation -63% to 30% (-43%) -60% to -11% (-39%) Equity - Interest rate correlation -8% to 52% (12% / 4%) -29% to 50% (16% / 8%) Predominant Valuation Techniques/ Significant Unobservable Inputs Range (Weighted Averages or Simple Averages/Median) 1 $ in millions At December 31, 2016 At December 31, 2015 Commodity and other contracts ($1,600 million and $1,050 million) Option model: Forward power price $7 to $90 ($32) per MWh $3 to $91 ($32) per MWh Commodity volatility 6% to 130% (18%) 10% to 92% (18%) Cross-commodity correlation 5% to 99% (92%) 43% to 99% (93%) Investments: Principal investments ($743 million and $486 million) Market approach : EBITDA multiple 6 to 24 times (12 times) 8 to 20 times (11 times) Forward capacity price N/M $5 to $9 ($7) Comparable pricing: Comparable equity price 75% to 100% (88%) 43% to 100% (81%) Discounted cash flow: Implied weighted average cost of capital N/M 16% Exit multiple N/M 8 to 14 times (9 times) Capitalization rate N/M 5% to 9% (6%) Equity discount rate N/M 20% to 35% (26%) Other ($215 million and $221 million) Discounted cash flow: Implied weighted average cost of capital 10% 10% Exit multiple 10 times 13 times Market approach: EBITDA multiple 6 to 13 times (11 times) 7 to 14 times (12 times) Comparable pricing : Comparable equity price 100% 100% Liabilities at Fair Value Securities sold under agreements to repurchase ($149 million and $151 million) Discounted cash flow: Funding spread 118 to 127 bps (121 bps) 86 to 116 bps (105 bps) Other secured financings ($434 million and $461 million) Discounted cash flow: Funding spread 63 to 92 bps (78 bps) 95 to 113 bps (104 bps) Option model: Volatility skew -1% -1% Discounted cash flow : Discount rate 4% 4% to 13% (4%) Long-term borrowings ($2,012 million and $1,987 million) Option model : At the money volatility 7% to 42% (30%) 20% to 50% (29%) Volatility skew -2% to 0% (-1%) -1% to 0% (-1%) Equity - Equity correlation 35% to 99% (84%) 40% to 97% (77%) Equity - Foreign exchange correlation -63% to 13% (-40%) -70% to -11% (-39%) Option model : Interest rate volatility skew 25% 50% Equity volatility discount 7% to 11% (10% / 10%) 10% Comparable pricing: Comparable equity price N/M 100% Correlation model: Credit correlation N/M 40% to 60% (52%) bps—Basis points . A basis point equals 1/100 th of 1%. Point s— Percentage of par MWh — Megawatt hours N/M—Not M eaningful EBITDA— Earnings before interest, taxes, depreciation and amortization 1. A mounts represent weighted averages except where simple averages and the median of the inputs are provided when more relevant . 2. Credit valuation adjustment (“CVA”) and FVA are included in the balance but excluded from the Valuation Technique(s) and Significant Unobservable Inputs in the previous table. CVA is a Leve l 3 input when the underlying counterparty credit curve is unobservable. FVA is a Level 3 input in its entirety given the lack of observability of funding spreads in the principal market . 3. Includes derivative contracts with multiple r isks ( i.e. , hybrid products). |
Fair Value of Investments Measured at NAV | Investments in Certain Funds Measured at NAV per Share At December 31, 2016 At December 31, 2015 $ in millions Fair Value Commitment Fair Value Commitment Private equity funds $ 1,566 $ 335 $ 1,917 $ 538 Real estate funds 1,103 136 1,337 128 Hedge funds 147 4 589 4 Total $ 2,816 $ 475 $ 3,843 $ 670 Nonredeemable Funds by Projected Distribution Fair Value at December 31, 2016 $ in millions Private Equity Real Estate Less than 5 years $ 100 $ 81 5-10 years 837 618 Over 10 years 629 404 Total $ 1,566 $ 1,103 Hedge Funds Redemption Frequency Fair Value At December 31, 2016 Quarterly 52% Every six months 17% Greater than six months 18% Subject to lock-up provisions 1 13% The remaining restriction period for these investments was primarily over three years . |
Earnings Impact of Instruments under the Fair Value Option | Earnings Impact of Instruments under the Fair Value Option Interest Gains (Losses) Trading Income Included in $ in millions Revenues (Expense) Net Revenues 2016 Securities purchased under agreements to resell $ (3) $ 7 $ 4 Deposits 1 (1) (1) (2) Short-term borrowings 1 33 ─ 33 Securities sold under agreements to repurchase 1 6 (13) (7) Long-term borrowings 1 (740) (483) (1,223) 2015 Securities purchased under agreements to resell $ (6) $ 10 $ 4 Short-term borrowings 2 63 ─ 63 Securities sold under agreements to repurchase 2 13 (6) 7 Long-term borrowings 2 2,404 (528) 1,876 2014 Securities purchased under agreements to resell $ (4) $ 9 $ 5 Short-term borrowings 2 (136) 1 (135) Securities sold under agreements to repurchase 2 (5) (6) (11) Long-term borrowings 2 1,867 (638) 1,229 1. Gains (losses) in 2016 are mainly attributable to changes in foreign currency rates or interest rates or movements in the reference price or index for short-term and long-term borrowings before the impact of related hedges. During 2016, i n accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , unrealized DVA gains (losses) were recorded within OCI in the consolidated comprehensive income statemen ts and , as such, are not included in this table . See Notes 2 and 15 for further information. 2. In 2015 and 2014, Gains (losses) recorded in Trading revenues are principally attributable to DVA , with the respective remainder attributable to cha nges in foreign currency rates or interest rates or movements in the reference price or index for primarily structured notes before the impact of related hedges. |
Gains (Losses) Due to Changes in Instrument Specific-Credit Risk | Gains (Losses) Due to Changes in Instrument-Specific Credit Risk 2016 $ in millions Trading Revenues OCI Short-term and long-term borrowings 1 $ 31 $ (460) Loans and other debt 2 (71) ─ Lending commitments 3 4 ─ 2015 Trading Revenues OCI Short-term and long-term borrowings 1 $ 618 $ ─ Loans and other debt 2 (193) ─ Lending commitments 3 12 ─ 2014 Trading Revenues OCI Short-term and long-term borrowings 1 $ 651 $ ─ Loans and other debt 2 179 ─ Lending commitments 3 30 ─ 1. In 2016 , in accordance with the early adoption of a pro vision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , unrealized DVA gains (losses) are recorded in OCI and when such gains (losses) are realized in Trading revenues . For 2015 and 2014, the realize d and unrealized DVA gains (losses) are recorded in Trading revenues. The cumulative pre-tax impact of changes in the Firm’s DVA re cognized in AOCI is an unrealized loss of $ 921 mil lion at December 31, 2016 . See Notes 2 and 15 for further information. 2. Loans and other debt instrument-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses, such as those due to changes i n interest rates. 3. Gains (losses) on lending commitments were generally determined based on the differen ce between estimated expected client yields and contractual yields at each respective period-end. |
Net Difference of Contractual Principal Amount Over Fair Value | Net Difference of Contractual Principal Amount Over Fair Value At At December 31, December 31, $ in millions 2016 2015 Loans and other debt 1 $ 13,495 $ 14,095 Loans 90 or more days past due and/or on nonaccrual status 1 11,502 11,651 Short-term and long-term borrowings 2 720 508 1. The majority of the difference between principal and fair value amounts for loans and other debt relates to distressed debt positions purchased at amounts well below par. 2. Short-term and long-term borrowings do not include structured notes where the repayment of the initial principal amount fluctuates based on changes in a reference price or index |
Short-term and Long-term Borrowings Measured at Fair Value on a Recurring Basis | Short-Term and Long-Term Borrowings Measured at Fair Value on a Recurring Basis At At December 31, December 31, $ in millions 2016 2015 Business Unit Responsible for Risk Management Equity $ 21,066 $ 17,789 Interest rates 16,051 14,255 Foreign exchange 1,114 1,866 Credit 647 400 Commodities 264 383 Total $ 39,142 $ 34,693 |
Fair Value of Loans in Nonaccrual Status | Fair Value of Loans in Nonaccrual Status At At December 31, December 31, $ in millions 2016 2015 Aggregate fair value of loans in nonaccrual status 1 $ 1,536 $ 1,853 1. Includes all loans 90 or more days past due in the amount of $ 787 million and $ 885 million at December 31, 2016 and December 31, 2015, respectively. |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | December 31, 2016 Carrying Fair Value by Level Gains (Losses) Income Statement $ in millions Value Level 1 Level 2 Level 3 for 2016 Classification Assets Loans 1 $ 4,913 $ ─ $ 2,470 $ 2,443 $ 40 Other revenues Other assets—Other investments 2 123 ─ ─ 123 (52) Other revenues Other assets—Premises, equipment Other revenues if held for sale, and software costs 3 25 ─ 22 3 (76) otherwise Other expenses Other revenues if held for sale, Intangible assets 4 ─ ─ ─ ─ (2) otherwise Other expenses Total assets $ 5,061 $ ─ $ 2,492 $ 2,569 $ (90) Liabilities Other liabilities and accrued Other revenues if held for sale, expenses 1 $ 226 $ ─ $ 166 $ 60 $ 121 otherwise Other expenses Total liabilities $ 226 $ ─ $ 166 $ 60 $ 121 December 31, 2015 Carrying Fair Value by Level Gains (Losses) Income Statement $ in millions Value Level 1 Level 2 Level 3 for 2015 Classification Assets Loans 1 $ 5,850 $ ─ $ 3,400 $ 2,450 $ (220) Other revenues Other assets—Other investments 2 ─ ─ ─ ─ (3) Other revenues Other assets—Premises, equipment Other revenues if held for sale, and software costs 3 ─ ─ ─ ─ (44) otherwise Other expenses Other revenues if held for sale, Other assets 5 31 ─ 31 ─ (22) otherwise Other expenses Total assets $ 5,881 $ ─ $ 3,431 $ 2,450 $ (289) Liabilities Other liabilities and accrued Other revenues if held for sale, expenses 1 $ 476 $ ─ $ 418 $ 58 $ (207) otherwise Other expenses Total liabilities $ 476 $ ─ $ 418 $ 58 $ (207) December 31, 2014 Carrying Fair Value by Level Gains (Losses) Income Statement $ in millions Value Level 1 Level 2 Level 3 for 2014 Classification Assets Loans 1 $ 3,336 $ ─ $ 2,386 $ 950 $ (165) Other revenues Other Assets—Other investments 2 46 ─ ─ 46 (38) Other revenues Other assets—Premises, equipment Other revenues if held for sale, and software costs 3 ─ ─ ─ ─ (58) otherwise Other expenses Other revenues if held for sale, Intangible assets 4 46 ─ ─ 46 (6) otherwise Other expenses Other revenues if held for sale, Other assets 5 ─ ─ ─ ─ (9) otherwise Other expenses Total assets $ 3,428 $ ─ $ 2,386 $ 1,042 $ (276) Liabilities Other liabilities and accrued Other revenues if held for sale, expenses 1 $ 219 $ ─ $ 178 $ 41 $ (165) otherwise Other expenses Total liabilities $ 219 $ ─ $ 178 $ 41 $ (165) Non-recurring changes in the fair value of loans and lending commitments: held for investment were calculated using the value of the underlying collateral; and held for sale were calculated using recently executed transactions, market price quotations, valuation models that incorporate market observable inputs where possible, such as comparable loan or debt prices and credit default swap spread levels adjusted for any basis difference between cash and derivative instruments, or default recovery analysis where such transactions and quotations are unobservable. Losses related to Other assets—Other investments were determined using techniques that included discounted cash flow models, methodologies that incorporate multiples of certain comparable companies and r ecently executed transactions. Included in these losses was a loss of approximately $35 million in 2016 in connection with the sale of solar investments and impairments of the remaining unsold solar investments accounted for under the equity method. Losses related to Other assets—Premises, equipment and software costs were determined using techniques that included a default recovery analysis and recently executed transactions. Included in these losses was an impairment charge of approximately $31 million in 201 6 in connection with an oil terminal facility to reduce the carrying value to its estimated fair value less costs to sell. Losses related to Intangible assets were determined using techniques that included discounted cash flow models and methodologies that incorpor ate multiples of certain comparable companies. Losses related to Other assets were determined primarily using a default recovery analysis. |
Financial Instruments Not Measured at Fair Value | At December 31, 2016 Fair Value by Level $ in millions Carrying Value Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and due from banks $ 22,017 $ 22,017 $ 22,017 $ — $ — Interest bearing deposits with banks 21,364 21,364 21,364 — — Investment securities—HTM securities 16,922 16,453 5,557 10,896 — Securities purchased under agreements to resell 101,653 101,655 — 97,825 3,830 Securities borrowed 125,236 125,240 — 125,093 147 Customer and other receivables 1 42,463 42,321 — 37,746 4,575 Loans 2 94,248 95,027 — 20,906 74,121 Other assets—Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 33,979 33,979 33,979 — — Financial Liabilities Deposits $ 155,800 $ 155,800 $ — $ 155,800 $ — Short-term borrowings 535 535 — 535 — Securities sold under agreements to repurchase 53,899 53,913 — 50,941 2,972 Securities loaned 15,844 15,853 — 15,853 — Other secured financings 6,077 6,082 — 4,792 1,290 Customer and other payables 1 187,671 187,671 — 187,671 — Long-term borrowings 126,039 129,877 — 129,826 51 At December 31, 2015 Fair Value by Level $ in millions Carrying Value Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and due from banks $ 19,827 $ 19,827 $ 19,827 $ — $ — Interest bearing deposits with banks 34,256 34,256 34,256 — — Investment securities—HTM securities 5,224 5,188 998 4,190 — Securities purchased under agreements to resell 86,851 86,837 — 86,186 651 Securities borrowed 142,416 142,414 — 142,266 148 Customer and other receivables 1 41,676 41,576 — 36,752 4,824 Loans 2 85,759 86,423 — 19,241 67,182 Other assets—Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 31,469 31,469 31,469 — — Financial Liabilities Deposits $ 155,909 $ 156,163 $ — $ 156,163 $ — Short-term borrowings 525 525 — 525 — Securities sold under agreements to repurchase 36,009 36,060 — 34,150 1,910 Securities loaned 19,358 19,382 — 19,192 190 Other secured financings 6,610 6,610 — 5,333 1,277 Customer and other payables 1 183,895 183,895 — 183,895 — Long-term borrowings 120,723 123,219 — 123,219 — Accrued interest, fees, and dividend receivables and p ayables where carrying value approximates fair value have been excluded. Amounts include loans measured at fair value on a non-recurring basi s. |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Table of Derivative Assets and Liabilities | Derivative Assets and Liabilities Derivative Assets at December 31, 2016 Fair Value Notional $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Bilateral OTC Cleared OTC Exchange-Traded Total Derivatives designated as accounting hedges Interest rate contracts $ 1,924 $ 1,049 $ — $ 2,973 $ 30,280 $ 37,632 $ — $ 67,912 Foreign exchange contracts 249 18 — 267 6,400 339 — 6,739 Total 2,173 1,067 — 3,240 36,680 37,971 — 74,651 Derivatives not designated as accounting hedges 1 Interest rate contracts 200,336 99,217 384 299,937 3,586,279 6,224,104 2,585,772 12,396,155 Credit contracts 9,837 2,392 — 12,229 332,641 111,954 — 444,595 Foreign exchange contracts 73,645 1,022 231 74,898 1,579,718 51,775 13,038 1,644,531 Equity contracts 20,710 — 17,919 38,629 337,791 — 241,837 579,628 Commodity and other contracts 9,792 — 3,727 13,519 67,216 — 79,670 146,886 Total 314,320 102,631 22,261 439,212 5,903,645 6,387,833 2,920,317 15,211,795 Total gross derivatives 2 $ 316,493 $ 103,698 $ 22,261 $ 442,452 $ 5,940,325 $ 6,425,804 $ 2,920,317 $ 15,286,446 Amounts offset Counterparty netting (243,488) (100,477) (19,607) (363,572) Cash collateral netting (45,875) (1,799) — (47,674) Total derivative assets in Trading assets $ 27,130 $ 1,422 $ 2,654 $ 31,206 Amounts not offset 3 Financial instruments collateral (10,293) — — (10,293) Other cash collateral (124) — — (124) Net amounts $ 16,713 $ 1,422 $ 2,654 $ 20,789 Derivative Liabilities at December 31, 2016 Fair Value Notional $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Bilateral OTC Cleared OTC Exchange-Traded Total Derivatives designated as accounting hedges Interest rate contracts $ 77 $ 647 $ — $ 724 $ 2,024 $ 51,934 $ — $ 53,958 Foreign exchange contracts 15 25 — 40 1,480 1,071 — 2,551 Total 92 672 — 764 3,504 53,005 — 56,509 Derivatives not designated as accounting hedges 1 Interest rate contracts 183,063 103,392 397 286,852 3,461,927 6,086,774 896,971 10,445,672 Credit contracts 11,024 2,401 — 13,425 358,927 96,397 — 455,324 Foreign exchange contracts 74,575 952 16 75,543 1,556,918 47,647 14,338 1,618,903 Equity contracts 22,531 — 17,983 40,514 320,520 — 272,669 593,189 Commodity and other contracts 8,303 — 3,582 11,885 77,527 — 59,387 136,914 Total 299,496 106,745 21,978 428,219 5,775,819 6,230,818 1,243,365 13,250,002 Total gross derivatives 2 $ 299,588 $ 107,417 $ 21,978 $ 428,983 $ 5,779,323 $ 6,283,823 $ 1,243,365 $ 13,306,511 Amounts offset Counterparty netting (243,488) (100,477) (19,607) (363,572) Cash collateral netting (30,405) (5,691) — (36,096) Total derivative liabilities in Trading liabilities $ 25,695 $ 1,249 $ 2,371 $ 29,315 Amounts not offset 3 Financial instruments collateral (7,638) — (585) (8,223) Other cash collateral (10) (1) — (11) Net amounts $ 18,047 $ 1,248 $ 1,786 $ 21,081 Derivative Assets at December 31, 2015 Fair Value Notional $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Bilateral OTC Cleared OTC Exchange-Traded Total Derivatives designated as accounting hedges Interest rate contracts $ 2,825 $ 1,442 $ — $ 4,267 $ 36,999 $ 35,362 $ — $ 72,361 Foreign exchange contracts 166 1 — 167 5,996 167 — 6,163 Total 2,991 1,443 — 4,434 42,995 35,529 — 78,524 Derivatives not designated as accounting hedges 4 Interest rate contracts 220,289 101,276 212 321,777 4,348,002 5,748,525 1,218,645 11,315,172 Credit contracts 19,310 3,609 — 22,919 585,731 139,301 — 725,032 Foreign exchange contracts 64,438 295 55 64,788 1,907,290 13,402 7,715 1,928,407 Equity contracts 20,212 — 20,077 40,289 316,770 — 229,859 546,629 Commodity and other contracts 13,333 — 4,038 17,371 73,133 — 82,313 155,446 Total 337,582 105,180 24,382 467,144 7,230,926 5,901,228 1,538,532 14,670,686 Total gross derivatives 2 $ 340,573 $ 106,623 $ 24,382 $ 471,578 $ 7,273,921 $ 5,936,757 $ 1,538,532 $ 14,749,210 Amounts offset Counterparty netting (265,707) (104,294) (21,592) (391,593) Cash collateral netting (50,335) (1,037) — (51,372) Total derivative assets in Trading assets $ 24,531 $ 1,292 $ 2,790 $ 28,613 Amounts not offset 3 Financial instruments collateral (9,190) — — (9,190) Other cash collateral (9) — — (9) Net amounts $ 15,332 $ 1,292 $ 2,790 $ 19,414 Derivative Liabilities at December 31, 2015 Fair Value Notional $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Bilateral OTC Cleared OTC Exchange-Traded Total Derivatives designated as accounting hedges Interest rate contracts $ 20 $ 250 $ — $ 270 $ 3,560 $ 9,869 $ — $ 13,429 Foreign exchange contracts 56 6 — 62 4,604 455 — 5,059 Total 76 256 — 332 8,164 10,324 — 18,488 Derivatives not designated as accounting hedges 4 Interest rate contracts 203,004 103,852 283 307,139 4,030,039 5,682,322 1,077,710 10,790,071 Credit contracts 19,942 3,723 — 23,665 562,027 131,388 — 693,415 Foreign exchange contracts 65,034 232 22 65,288 1,868,015 13,322 2,655 1,883,992 Equity contracts 25,708 — 20,424 46,132 332,734 — 229,266 562,000 Commodity and other contracts 10,907 — 3,887 14,794 63,283 — 62,974 126,257 Total 324,595 107,807 24,616 457,018 6,856,098 5,827,032 1,372,605 14,055,735 Total gross derivatives 2 $ 324,671 $ 108,063 $ 24,616 $ 457,350 $ 6,864,262 $ 5,837,356 $ 1,372,605 $ 14,074,223 Amounts offset Counterparty netting (265,707) (104,294) (21,592) (391,593) Cash collateral netting (33,332) (2,951) — (36,283) Total derivative liabilities in Trading liabilities $ 25,632 $ 818 $ 3,024 $ 29,474 Amounts not offset 3 Financial instruments collateral (5,384) — (405) (5,789) Other cash collateral (5) — — (5) Net amounts $ 20,243 $ 818 $ 2,619 $ 23,680 1 . Notional amounts include gross notionals related to open long and short futures contracts of $ 2,088.0 billion and $ 332.4 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 784 million and $ 174 million is included in Customer and other receivables and Customer and other payables, respectively, in the consolidated balance sheets. 2. Amounts include transactions that are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable as follows: $ 3.7 billion of derivative assets and $ 3.5 bi llion of derivative liabilities at December 31, 2016 and $ 4.2 billion of derivative assets and $ 5.2 billion of derivative liabilities at December 31, 2015 . 3. Amounts relate to master netting agreements and collateral agreements that have been determi ned by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. 4. Notional amounts include gross notionals related to open long and short futures contracts of $ 1,009.5 billion and $ 653.0 billion, respectively. The unsettled fair value on these futures contracts (excluded from this table) of $ 1,145 million and $ 437 million is included in Customer and other receivables and Customer and other payables, respectively, in the consolidated balance sheets. |
Schedule of Gains (Losses) on Fair Value Hedges | Gains (Losses) on Fair Value Hedges Gains (Losses) Recognized in Interest Expense $ in millions 2016 2015 2014 Derivatives $ (1,738) $ (700) $ 1,462 Borrowings 1,541 461 (1,616) Total $ (197) $ (239) $ (154) |
Table of Gains (Losses) on Effective Portion of Net Investment Hedges | Gains (Losses) on Effective Portion of Net Investment Hedges Gains (Losses) Recognized in OCI $ in millions 2016 2015 2014 Foreign exchange contracts 1 $ (1) $ 434 $ 606 1 . Losses of $ 74 million in 2016, $ 149 million in 2015 and $ 186 million in 2014 recognized in Interest income were related to the forward points on the hedging instruments that were excluded from hedge effectiveness testing . |
Schedule of Trading Revenues by Product Type | Trading Revenues by Product Type $ in millions 2016 2015 2014 Interest rate contracts $ 1,522 $ 1,249 $ 1,065 Foreign exchange contracts 1,156 984 729 Equity security and index contracts 1 5,690 5,695 4,603 Commodity and other contracts 56 793 1,055 Credit contracts 1,785 775 1,274 Subtotal $ 10,209 $ 9,496 $ 8,726 Debt valuation adjustment 2 — 618 651 Total trading revenues $ 10,209 $ 10,114 $ 9,377 1. Dividend income is included within equity security and index contracts. 2. In 2016, in accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , unrealized DVA gains (losses) are recorded within OCI in the consolidated comprehensive income statements. In 2015 and 2014 , the DVA gains (losses) were recorded within Trading revenues in the consolidated income statements. See Notes 2 and 15 for further inf ormation. |
Counterparty Credit Rating and Remaining Maturity of OTC Derivative Assets | OTC Derivative Products—Trading Assets Counterparty Credit Rating and Remaining Maturity of OTC Derivative Assets Fair Value at December 31, 2016 1 Contractual Years to Maturity Cross-Maturity and Cash Collateral Netting 2 Net Amounts Post-cash Collateral Net Amounts Post-collateral 3 $ in millions Less than 1 1-3 3-5 Over 5 Credit Rating 4 AAA $ 150 $ 428 $ 918 $ 2,931 $ (3,900) $ 527 $ 485 AA 3,177 2,383 2,942 10,194 (11,813) 6,883 4,114 A 9,244 6,676 5,495 21,322 (31,425) 11,312 6,769 BBB 4,423 3,085 2,434 13,023 (16,629) 6,336 4,852 Non-investment grade 2,283 1,702 1,722 1,794 (4,131) 3,370 1,915 Total $ 19,277 $ 14,274 $ 13,511 $ 49,264 $ (67,898) $ 28,428 $ 18,135 Fair Value at December 31, 2015 1 Contractual Years to Maturity Cross-Maturity and Cash Collateral Netting 2 Net Amounts Post-cash Collateral Net Amounts Post-collateral 3 $ in millions Less than 1 1-3 3-5 Over 5 Credit Rating 4 AAA $ 203 $ 453 $ 827 $ 3,665 $ (4,319) $ 829 $ 715 AA 2,689 2,000 1,876 9,223 (10,981) 4,807 2,361 A 9,748 8,191 4,774 20,918 (34,916) 8,715 5,448 BBB 3,614 4,863 1,948 11,801 (15,086) 7,140 4,934 Non-investment grade 3,982 2,333 1,157 3,567 (6,716) 4,323 3,166 Total $ 20,236 $ 17,840 $ 10,582 $ 49,174 $ (72,018) $ 25,814 $ 16,624 1 . Fair values shown represent the Firm’s net exposure to counterparties related to its OTC derivative products. 2 . Amounts represent the netting of receivable balances with payable balances for the same counterparty across maturity categories. Receivable and payable balances with the same counterparty in the same maturity category are netted within such maturity category, where appropriate. Cash collateral received is netted on a counterparty basis, provided legal right of offset exists. 3 . Fair value is shown, net of collateral received (primarily cash and U.S. government and agency securities). 4 . Obligor credit ratings are determined internally by the Credit Risk Management Department. |
Credit Risk-Related Contingencies | Net Derivative Liabilities and Collat eral Posted $ in millions At December 31, 2016 At December 31, 2015 Net derivative liabilities with credit risk- related contingent features $ 22,939 $ 23,526 Collateral posted 17,040 19,070 Incremental Collateral or Termination Payments upon Potential Future Ratings Downgrade $ in millions At December 31, 2016 1 One-notch downgrade $ 1,269 Two-notch downgrade 692 1 . Amounts include $ 1,231 million related to bilateral arrangements between the Firm and other parties where upon the downgrade of one party, the downgraded party must deliver collateral to the other party. These bilateral downgrade arrangements are used by the Firm to manage the risk of counterparty downgrades. |
Schedule of Credit Derivatives and Other Credit Contracts | Protection Sold and Purchased with Credit Default Swaps At December 31, 2016 Protection Sold Protection Purchased $ in millions Notional Fair Value (Asset)/ Liability Notional Fair Value (Asset)/ Liability Credit default swaps Single name $ 266,918 $ (753) $ 269,623 $ 826 Index and basket 130,383 374 122,061 (481) Tranched index and basket 32,429 (670) 78,505 1,900 Total $ 429,730 $ (1,049) $ 470,189 $ 2,245 At December 31, 2015 Protection Sold Protection Purchased $ in millions Notional Fair Value (Asset)/ Liability Notional Fair Value (Asset)/ Liability Credit default swaps Single name $ 420,806 $ 1,980 $ 405,361 $ (2,079) Index and basket 199,688 (102) 173,936 (82) Tranched index and basket 69,025 (1,093) 149,631 2,122 Total $ 689,519 $ 785 $ 728,928 $ (39) Credit Ratings of Reference Obligation and Maturities of Credit Protection Sold At December 31, 2016 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability 1 Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Single name credit default swaps 2 Investment grade $ 79,449 $ 70,796 $ 34,529 $ 10,293 $ 195,067 $ (1,060) Non-investment grade 34,571 25,820 10,436 1,024 71,851 307 Total single name credit default swaps 114,020 96,616 44,965 11,317 266,918 (753) Index and basket credit default swaps 2 Investment grade 26,530 21,388 35,060 9,096 92,074 (846) Non-investment grade 26,135 22,983 11,759 9,861 70,738 550 Total index and basket credit default swaps 52,665 44,371 46,819 18,957 162,812 (296) Total credit default swaps sold $ 166,685 $ 140,987 $ 91,784 $ 30,274 $ 429,730 $ (1,049) Other credit contracts 49 6 — 215 270 — Total credit derivatives and other credit contracts $ 166,734 $ 140,993 $ 91,784 $ 30,489 $ 430,000 $ (1,049) At December 31, 2015 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability 1 Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Single name credit default swaps 2 Investment grade $ 84,543 $ 138,467 $ 63,754 $ 12,906 $ 299,670 $ (1,831) Non-investment grade 38,054 56,261 24,432 2,389 121,136 3,811 Total single name credit default swaps $ 122,597 $ 194,728 $ 88,186 $ 15,295 $ 420,806 $ 1,980 Index and basket credit default swaps 2 Investment grade $ 33,507 $ 59,403 $ 45,505 $ 5,327 $ 143,742 $ (1,977) Non-investment grade 52,590 43,899 15,480 13,002 124,971 782 Total index and basket credit default swaps $ 86,097 $ 103,302 $ 60,985 $ 18,329 $ 268,713 $ (1,195) Total credit default swaps sold $ 208,694 $ 298,030 $ 149,171 $ 33,624 $ 689,519 $ 785 Other credit contracts 19 107 2 332 460 (24) Total credit derivatives and other credit contracts $ 208,713 $ 298,137 $ 149,173 $ 33,956 $ 689,979 $ 761 1. Fair value amounts are shown on a gross basis prior to cash collateral or counterparty netting. 2 . In order to provide an indication of the current payment status or performance risk of the CDS, a breakdown of CDS based on the Firm’s internal credit ratings by investment grade and non-investment grade is provided. Internal credit ratings serve as the Credit Risk Management Department’s assessment of credit risk and the basis for a comprehensive credit limits framework used to control credit risk. The Firm uses quantitative models and judgment to estimate the various risk parameters related to each obligor. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investment securities | |
Schedule of AFS and HTM Securities | AFS and HTM Securities At December 31, 2016 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 28,371 $ 1 $ 545 $ 27,827 U.S. agency securities 1 22,348 14 278 22,084 Total U.S. government and agency securities 50,719 15 823 49,911 Corporate and other debt: Commercial mortgage- backed securities: Agency 1,850 2 44 1,808 Non-agency 2,250 11 16 2,245 Auto loan asset-backed securities 1,509 1 1 1,509 Corporate bonds 3,836 7 22 3,821 Collateralized loan obligations 540 — 1 539 FFELP student loan asset- backed securities 2 3,387 5 61 3,331 Total corporate and other debt 13,372 26 145 13,253 Total AFS debt securities 64,091 41 968 63,164 AFS equity securities 15 — 9 6 Total AFS securities 64,106 41 977 63,170 HTM securities U.S. government securities: U.S. Treasury securities 5,839 1 283 5,557 U.S. agency securities 1 11,083 1 188 10,896 Total HTM securities 16,922 2 471 16,453 Total Investment securities $ 81,028 $ 43 $ 1,448 $ 79,623 At December 31, 2015 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 31,555 $ 5 $ 143 $ 31,417 U.S. agency securities 1 21,103 29 156 20,976 Total U.S. government and agency securities 52,658 34 299 52,393 Corporate and other debt: Commercial mortgage- backed securities: Agency 1,906 1 60 1,847 Non-agency 2,220 3 25 2,198 Auto loan asset-backed securities 2,556 — 9 2,547 Corporate bonds 3,780 5 30 3,755 Collateralized loan obligations 502 — 7 495 FFELP student loan asset- backed securities 2 3,632 — 115 3,517 Total corporate and other debt 14,596 9 246 14,359 Total AFS debt securities 67,254 43 545 66,752 AFS equity securities 15 — 8 7 Total AFS securities 67,269 43 553 66,759 HTM securities U.S. government securities: U.S. Treasury securities 1,001 — 3 998 U.S. agency securities 1 4,223 1 34 4,190 Total HTM securities 5,224 1 37 5,188 Total Investment securities $ 72,493 $ 44 $ 590 $ 71,947 1. U.S. agency securities consist mainly of agency-issued debt, agency mortgage pass-through pool securities and collateralized mortgage obligations. 2. Amounts are backed by a guarantee from the U.S. Department of Education of at least 95 % of the principal balance and interest on such loans. |
Schedule of Investment Securities in an Unrealized Loss Position | Investment Securities in an Unrealized Loss Position At December 31, 2016 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 25,323 $ 545 $ — $ — $ 25,323 $ 545 U.S. agency securities 16,760 278 125 — 16,885 278 Total U.S. government and agency securities 42,083 823 125 — 42,208 823 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,245 44 — — 1,245 44 Non-agency 763 11 594 5 1,357 16 Auto loan asset-backed securities 659 1 123 — 782 1 Corporate bonds 2,050 21 142 1 2,192 22 Collateralized loan obligations 178 — 239 1 417 1 FFELP student loan asset-backed securities 2,612 61 — — 2,612 61 Total corporate and other debt 7,507 138 1,098 7 8,605 145 Total AFS debt securities 49,590 961 1,223 7 50,813 968 AFS equity securities 6 9 — — 6 9 Total AFS securities 49,596 970 1,223 7 50,819 977 HTM securities U.S. government and agency securities: U.S. Treasury securities 5,057 283 — — 5,057 283 U.S. agency securities 10,612 188 — — 10,612 188 Total HTM securities 15,669 471 — — 15,669 471 Total Investment securities $ 65,265 $ 1,441 $ 1,223 $ 7 $ 66,488 $ 1,448 At December 31, 2015 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 25,994 $ 126 $ 2,177 $ 17 $ 28,171 $ 143 U.S. agency securities 14,242 135 639 21 14,881 156 Total U.S. government and agency securities 40,236 261 2,816 38 43,052 299 Corporate and other debt: Commercial mortgage-backed securities: Agency 1,185 44 422 16 1,607 60 Non-agency 1,479 21 305 4 1,784 25 Auto loan asset-backed securities 1,644 7 881 2 2,525 9 Corporate bonds 2,149 19 525 11 2,674 30 Collateralized loan obligations 352 5 143 2 495 7 FFELP student loan asset-backed securities 2,558 79 929 36 3,487 115 Total corporate and other debt 9,367 175 3,205 71 12,572 246 Total AFS debt securities 49,603 436 6,021 109 55,624 545 AFS equity securities 7 8 — — 7 8 Total AFS securities 49,610 444 6,021 109 55,631 553 HTM securities U.S. government and agency securities: U.S. Treasury securities 898 3 — — 898 3 U.S. agency securities 3,677 34 — — 3,677 34 Total HTM securities 4,575 37 — — 4,575 37 Total Investment securities $ 54,185 $ 481 $ 6,021 $ 109 $ 60,206 $ 590 |
Schedule of Investment Securities by Contractual Maturity | Investment Securities by Contractual Maturity At December 31, 2016 $ in millions Amortized Cost Fair Value Average Yield AFS debt securities U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 2,162 $ 2,160 0.8% After 1 year through 5 years 20,280 20,089 1.1% After 5 years through 10 years 5,929 5,578 1.4% Total 28,371 27,827 U.S. agency securities: Due within 1 year 36 36 0.7% After 1 year through 5 years 3,581 3,570 0.7% After 5 years through 10 years 1,255 1,251 2.0% After 10 years 17,476 17,227 1.8% Total 22,348 22,084 Total U.S. government and agency securities 50,719 49,911 1.4% Corporate and other debt: Commercial mortgage-backed securities: Agency: Due within 1 year 116 116 1.1% After 1 year through 5 years 267 267 1.2% After 5 years through 10 years 546 546 1.2% After 10 years 921 879 1.6% Total 1,850 1,808 Non-agency: After 5 years through 10 years 35 34 2.5% After 10 years 2,215 2,211 2.0% Total 2,250 2,245 Auto loan asset-backed securities: Due within 1 year 84 84 1.3% After 1 year through 5 years 1,363 1,363 1.4% After 5 years through 10 years 62 62 1.6% Total 1,509 1,509 Corporate bonds: Due within 1 year 860 859 1.3% After 1 year through 5 years 2,270 2,265 2.0% After 5 years through 10 years 706 697 2.4% Total 3,836 3,821 Collateralized loan obligations: After 5 years through 10 years 362 361 1.5% After 10 years 178 178 2.4% Total 540 539 FFELP student loan asset-backed securities: After 1 year through 5 years 70 70 0.7% After 5 years through 10 years 806 785 0.9% After 10 years 2,511 2,476 1.0% Total 3,387 3,331 Total corporate and other debt 13,372 13,253 1.6% Total AFS debt securities 64,091 63,164 1.4% AFS equity securities 15 6 ― % Total AFS securities 64,106 63,170 1.4% HTM securities U.S. government securities: U.S. Treasury securities: Due within 1 year 500 500 0.7% After 1 year through 5 years 2,013 2,003 1.3% After 5 years through 10 years 2,600 2,433 1.6% After 10 years 726 621 2.3% Total 5,839 5,557 U.S. agency securities: After 10 years 11,083 10,896 2.4% Total 11,083 10,896 Total HTM securities 16,922 16,453 2.1% Total Investment securities $ 81,028 $ 79,623 1.6% |
Schedule of Gross Realized Gains and Losses on Sales of AFS Securities | Gross Realized Gains and Losses on Sales of AFS Securities $ in millions 2016 2015 2014 Gross realized gains $ 133 $ 116 41 Gross realized (losses) (21) (32) (1) Total $ 112 $ 84 40 |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Collateralized Transactions | |
Schedule of Offsetting of Certain Collaterized Transactions | Offsetting of Certain Collateralized Transactions At December 31, 2016 $ in millions Gross Amounts 1 Amounts Offset Net Amounts Presented Amounts Not Offset 2 Net Amounts Assets Securities purchased under agreements to resell $ 182,888 $ (80,933) $ 101,955 $ (93,365) $ 8,590 Securities borrowed 129,934 (4,698) 125,236 (118,974) 6,262 Liabilities Securities sold under agreements to repurchase $ 135,561 $ (80,933) $ 54,628 $ (47,933) $ 6,695 Securities loaned 20,542 (4,698) 15,844 (15,670) 174 At December 31, 2015 $ in millions Gross Amounts 1 Amounts Offset Net Amounts Presented Amounts Not Offset 2 Net Amounts Assets Securities purchased under agreements to resell $ 135,714 $ (48,057) $ 87,657 $ (84,752) $ 2,905 Securities borrowed 147,445 (5,029) 142,416 (134,250) 8,166 Liabilities Securities sold under agreements to repurchase $ 84,749 $ (48,057) $ 36,692 $ (31,604) $ 5,088 Securities loaned 24,387 (5,029) 19,358 (18,881) 477 1. Amounts include transactions that are either not subject to master netting agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable as follows: $ 7.8 billion of Securities purchased under agreements to resell, $ 2.6 billion of Securities borrowed, $ 6.5 billion of Securities sold under agreements to repurchase and $ 0.2 b illion of Securitie s loaned at December 31, 2016 and $2.6 billion of Securities purchased under agreements to resell, $3.0 billion of Securities borrowed and $4.9 billion of Securities sold under agreements to repurchase at December 31, 2015 . 2. Amou nts 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 | Maturities and Collateral Pledged Gross Secured Financing Balances by Remaining Contractual Maturity At December 31, 2016 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase 1 $ 41,549 $ 36,703 $ 24,648 $ 32,661 $ 135,561 Securities loaned 1 9,487 851 2,863 7,341 20,542 Gross amount of secured financing included in the offsetting disclosure $ 51,036 $ 37,554 $ 27,511 $ 40,002 $ 156,103 Trading liabilities ― Obligation to return securities received as collateral 20,262 — — — 20,262 Total $ 71,298 $ 37,554 $ 27,511 $ 40,002 $ 176,365 At December 31, 2015 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase 1 $ 20,410 $ 25,245 $ 13,221 $ 25,873 $ 84,749 Securities loaned 1 12,247 478 2,156 9,506 24,387 Gross amount of secured financing included in the offsetting disclosure $ 32,657 $ 25,723 $ 15,377 $ 35,379 $ 109,136 Trading liabilities ― Obligation to return securities received as collateral 19,316 — — — 19,316 Total $ 51,973 $ 25,723 $ 15,377 $ 35,379 $ 128,452 1. Amounts are presented on a gross basis, prior to netting in the consolidated balance sheets . Gross Secured Financing Balances by Class of Collateral Pledged $ in millions At December 31, 2016 At December 31, 2015 Securities sold under agreements to repurchase 1 U.S. government and agency securities $ 56,372 $ 36,609 State and municipal securities 1,363 173 Other sovereign government obligations 42,790 24,820 Asset-backed securities 1,918 441 Corporate and other debt 9,086 4,020 Corporate equities 23,152 18,473 Other 880 213 Total securities sold under agreements to repurchase $ 135,561 $ 84,749 Securities loaned 1 U.S. government and agency securities $ 1 $ — Other sovereign government obligations 4,762 7,336 Corporate and other debt 73 71 Corporate equities 15,693 16,972 Other 13 8 Total securities loaned $ 20,542 $ 24,387 Gross amount of secured financing included in the offsetting disclosure $ 156,103 $ 109,136 Trading liabilities ― Obligation to return securities received as collateral Corporate and other debt $ — $ 3 Corporate equities 20,247 19,313 Other 15 — Total Trading liabilities ― obligation to return securities received as collateral $ 20,262 $ 19,316 Total $ 176,365 $ 128,452 1. Amounts are presented on a gross basis, prior to netting in the consolidated balance sheets . |
Schedule of Cash and Securities Deposited with Clearing Organizations and Segregated | Cash and Securities Deposited with Clearing Organizations or Segregated $ in millions At December 31, 2016 At December 31, 2015 Securities 1 $ 23,756 $ 14,390 Other assets―Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 33,979 31,469 Total $ 57,735 $ 45,859 Securities deposited with clearing organizations or segregated under federal and other regulations or requirements are sourced from Securities purchased under agreements to resell and Trading assets in the consolidated balance sheets. |
Loans and Allowance for Credi37
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Table of Loans Held for Investment and Held for Sale | Loans Held for Investment and Held for Sale At December 31, 2016 $ in millions Loans Held for Investment Loans Held for Sale Total Loans 1, 2 Loans by Product Type Corporate loans $ 25,025 $ 10,710 $ 35,735 Consumer loans 24,866 — 24,866 Residential real estate loans 24,385 61 24,446 Wholesale real estate loans 7,702 1,773 9,475 Total loans, gross 81,978 12,544 94,522 Allowance for loan losses (274) — (274) Total loans, net $ 81,704 $ 12,544 $ 94,248 At December 31, 2015 $ in millions Loans Held for Investment Loans Held for Sale Total Loans 1, 2 Loans by Product Type Corporate loans $ 23,554 $ 11,924 $ 35,478 Consumer loans 21,528 — 21,528 Residential real estate loans 20,863 104 20,967 Wholesale real estate loans 6,839 1,172 8,011 Total loans, gross 72,784 13,200 85,984 Allowance for loan losses (225) — (225) Total loans, net $ 72,559 $ 13,200 $ 85,759 Amounts include loans that are made to non-U.S. borrowers of $ 9 , 388 million and $ 9,789 million at December 31, 2016 and December 31, 2015 , respectively. Loans at fixed interest rates and floating or adjustable interest rates were $ 11,895 million and $ 82,353 million at December 31, 2016 , respectively, and $ 8 , 471 million and $ 77,288 million, at December 31, 2015 , respectively . |
Table of Loans Held for Investment Before Allowance by Credit Quality | Loans Held for Investment before Allowance by Credit Quality At December 31, 2016 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 23,409 $ 24,853 $ 24,345 $ 7,294 $ 79,901 Special mention 288 13 — 218 519 Substandard 1,259 — 40 190 1,489 Doubtful 69 — — — 69 Loss — — — — — Total loans $ 25,025 $ 24,866 $ 24,385 $ 7,702 $ 81,978 At December 31, 2015 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 22,040 $ 21,528 $ 20,828 $ 6,839 $ 71,235 Special mention 300 — — — 300 Substandard 1,202 — 35 — 1,237 Doubtful 12 — — — 12 Loss — — — — — Total loans $ 23,554 $ 21,528 $ 20,863 $ 6,839 $ 72,784 |
Table of Impaired Loans Before Allowance by Product Type | Impaired Loans Before Allowance by Product Type At December 31, 2016 $ in millions Corporate Residential Real Estate Total Impaired loans with allowance $ 104 $ — $ 104 Impaired loans without allowance 1 206 35 241 Impaired loans unpaid principal balance 2 316 38 354 At December 31, 2015 $ in millions Corporate Residential Real Estate Total Impaired loans with allowance $ 39 $ — $ 39 Impaired loans without allowance 1 89 17 106 Impaired loans unpaid principal balance 2 130 19 149 At December 31, 2016 and December 31, 2015 , no allowance was recorded for these loans as the present value of the expected future cash flows (or, alternatively, the observable market price of the loan or the fair value of the collateral held) equaled or exceeded the carrying value. The impaired loans unpaid principal balance differs from the aggregate amount of impaired loan balances with and witho ut allowance due to various factors, including charge-offs and net deferred loan fees or costs. |
Table of Select Loan Information by Region | Select Loan Information by Region At December 31, 2016 $ in millions Americas EMEA Asia-Pacific Total Impaired loans $ 320 $ 9 $ 16 $ 345 Allowance for loan losses 245 28 1 274 At December 31, 2015 $ in millions Americas EMEA Asia-Pacific Total Impaired loans $ 108 $ 12 $ 25 $ 145 Allowance for loan losses 183 34 8 225 EMEA—Europe, Middle East and Africa |
Table of Allowance for Credit Losses on Lending Activities | Allowance for Loan Losses Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Rollforward Balance at December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Gross charge-offs (16) — (1) — (17) Gross recoveries 3 — — — 3 Net recoveries/(charge-offs) (13) — (1) — (14) Provision for (release of) loan losses 110 (1) 4 18 131 Other 1 (68) — — — (68) Balance at December 31, 2016 $ 195 $ 4 $ 20 $ 55 $ 274 Allowance by Impairment Methodology Inherent $ 133 $ 4 $ 20 $ 55 $ 212 Specific 62 — — — 62 Total allowance at December 31, 2016 $ 195 $ 4 $ 20 $ 55 $ 274 Loans by Impairment Methodology 2 Inherent $ 24,715 $ 24,866 $ 24,350 $ 7,702 $ 81,633 Specific 310 — 35 — 345 Total loans at December 31, 2016 $ 25,025 $ 24,866 $ 24,385 $ 7,702 $ 81,978 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Rollforward Balance at December 31, 2014 $ 118 $ 2 $ 8 $ 21 $ 149 Gross charge-offs — — (1) — (1) Gross recoveries 1 — — — 1 Net recoveries/(charge-offs) 1 — (1) — — Provision for loan losses 58 3 10 16 87 Other (11) — — — (11) Balance at December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Allowance by Impairment Methodology Inherent $ 156 $ 5 $ 17 $ 37 $ 215 Specific 10 — — — 10 Total allowance at December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Loans by Impairment Methodology 2 Inherent $ 23,426 $ 21,528 $ 20,846 $ 6,839 $ 72,639 Specific 128 — 17 — 145 Total loans at December 31, 2015 $ 23,554 $ 21,528 $ 20,863 $ 6,839 $ 72,784 Allowance for Lending Commitments Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Rollforward Balance at December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Provision for lending commitments 13 — — — 13 Other (8) — — — (8) Balance at December 31, 2016 $ 185 $ 1 $ — $ 4 $ 190 Allowance by Impairment Methodology Inherent $ 185 $ 1 $ — $ 4 $ 190 Specific — — — — — Total allowance at December 31, 2016 $ 185 $ 1 $ — $ 4 $ 190 Lending Commitments by Impairment Methodology 2 Inherent $ 63,078 $ 6,031 $ 322 $ 527 $ 69,958 Specific 89 — — — 89 Total lending commitments at December 31, 2016 $ 63,167 $ 6,031 $ 322 $ 527 $ 70,047 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total Rollforward Balance at December 31, 2014 $ 147 $ — $ — $ 2 $ 149 Provision for lending commitments 33 1 — 2 36 Balance at December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Allowance by Impairment Methodology Inherent $ 173 $ 1 $ — $ 4 $ 178 Specific 7 — — — 7 Total allowance at December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Lending Commitments by Impairment Methodology 2 Inherent $ 63,873 $ 4,856 $ 312 $ 381 $ 69,422 Specific 126 — — — 126 Total lending commitments at December 31, 2015 $ 63,999 $ 4,856 $ 312 $ 381 $ 69,548 Reduction related to loans of $ 492 million that were transferred to loans held for sale during 2016 . Loan balances are gross of the allowance for loan losses, and lending commitments are gross of the allowance for lending commitments. |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures | |
Summarized Financial Data for MUMSS | Summarized Financial Data for MUMSS At December 31, $ in millions 2016 2015 Total assets $ 120,991 $ 135,398 Total liabilities 117,798 132,492 Noncontrolling interests 29 29 $ in millions 2016 2015 2014 Net revenues $ 2,527 $ 2,961 $ 2,961 Income from continuing operations before income taxes 369 845 908 Net income 246 589 595 Net income applicable to MUMSS 233 565 582 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets | |
Table of Goodwill Rollforward | Goodwill Rollforward $ in millions Institutional Securities Wealth Management Investment Management Total At December 31, 2014 1 $ 286 $ 5,533 $ 769 $ 6,588 Foreign currency and other (15) ─ ─ (15) Acquired 11 ─ ─ 11 At December 31, 2015 1 $ 282 $ 5,533 $ 769 $ 6,584 Foreign currency and other (7) ─ ─ (7) At December 31, 2016 1 $ 275 $ 5,533 $ 769 $ 6,577 1. The amount of the Firm’s goodwill before accumulated impairments of $ 700 million, which included $ 673 million related to the Institutional Securities business segment and $ 27 million related to the Investment Management business segment, was $ 7 , 277 million and $ 7,284 million at December 31, 2016 and December 31, 2015 , respectively. |
Schedule of Intangible Assets | Intangible Assets $ in millions Institutional Securities Wealth Management Investment Management Total Amortizable intangibles $ 327 $ 2,632 $ 20 $ 2,979 Mortgage servicing rights — 5 — 5 At December 31, 2015 $ 327 $ 2,637 $ 20 $ 2,984 Amortizable intangibles $ 346 $ 2,361 $ 11 $ 2,718 Mortgage servicing rights — 3 — 3 At December 31, 2016 $ 346 $ 2,364 $ 11 $ 2,721 |
Schedule of Amortizable Intangible Assets | Gross Amortizable Intangible Assets by Type At December 31, 2016 At December 31, 2015 $ in millions Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Trademarks $ 1 $ — $ 1 $ — Tradename 283 40 280 31 Customer relationships 4,059 1,939 4,059 1,686 Management contracts 467 275 478 250 Other 329 167 291 163 Total $ 5,139 $ 2,421 $ 5,109 $ 2,130 |
Schedule of Amortizable Net Intangible Assets | Net Amortizable Intangible Assets Rollforward $ in millions Institutional Securities Wealth Management Investment Management Total At December 31, 2014 $ 221 $ 2,905 $ 27 $ 3,153 Acquired 1 160 — — 160 Amortization expense (26) (273) (7) (306) Other (28) — — (28) At December 31, 2015 $ 327 $ 2,632 $ 20 $ 2,979 Acquired 43 — — 43 Disposals (11) — — (11) Amortization expense (11) (271) (9) (291) Impairment losses (2) — — (2) At December 31, 2016 $ 346 $ 2,361 $ 11 $ 2,718 Includes a $ 159 million net increase in Intangible assets related to a Commodities division transaction, which also resulted in a gain of $ 78 million recorded in Other revenues in the consolidated income statement s . |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | Deposits At December 31, At December 31, $ in millions 2016 1 2015 1 Savings and demand deposits $ 154,559 $ 153,346 Time deposits 2 1,304 2,688 Total 3 $ 155,863 $ 156,034 1. Total deposits subject to FDIC insurance at December 31, 2016 and December 31, 2015 were $128 billion and $113 billion, respectively. Of the total time deposits subject to FDIC insurance at December 31, 2016 and December 31, 2015, $46 million and $14 million, respectively, met or exceeded the FDIC insurance limit. 2. Certain time deposit accounts are carried at fair value under the fair value option (see Note 3). 3. Deposits were primarily held in the U.S. |
Borrowings and Other Secured 41
Borrowings and Other Secured Financings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Borrowings and Other Secured Financings | |
Maturities and Terms of Long-Term Borrowings | Parent Company Subsidiaries At December 31, 2016 3 At December 31, 2015 $ in millions Fixed Rate 1 Variable Rate 2 Fixed Rate 1 Variable Rate 2 Due in 2016 $ — $ — $ — $ — $ — $ 22,396 Due in 2017 14,120 7,369 16 4,622 26,127 22,266 Due in 2018 12,942 4,698 13 1,639 19,292 17,937 Due in 2019 13,049 8,340 38 970 22,397 18,568 Due in 2020 11,128 4,570 13 1,025 16,736 17,005 Due in 2021 13,614 2,044 17 1,504 17,179 9,142 Thereafter 43,076 15,385 244 4,339 63,044 46,454 Total $ 107,929 $ 42,406 $ 341 $ 14,099 $ 164,775 $ 153,768 Weighted average coupon at period-end 4 4.1% 1.4% 6.0% N/M 3.7% 4.0% N/M—Not Meaningful 1. Amounts include an increase of approximately $ 1.1 billion at December 31, 2016 to the carrying amount of certain of the long-term borrowings associated with fair value hedges. The increase to the carrying value associated with fair value hedges by year due was approximately $ 0.2 billion due in 2017, $ 0.2 billion due in 2018, $ 0.3 billion due in 2019, $ 0.3 billion due in 2020, $ 0.2 billion due in 202 1 and ( $ 0. 1 ) billion due thereafter. 2 . Variable rate borrowings bear interest b ased on a variety of money market indices, including LIBOR and federal funds rates. Amounts include borrowings that are linked to equity, credit, commodity or ot her ind ices . 3. A mounts include a decrease of approximately $ 0.7 billion at December 31, 2016 to the carrying amounts of certain of the long-term borrowings for which the fair value option was elected (see Note 3). 4. Weighted average coupon was calculated utilizing U.S. and non-U.S. dollar interest rates and excludes financial instruments for which the fair value option was 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 Long-term Borrowings by Type and Rates | Long-Term Borrowings by Type $ in millions At December 31, 2016 At December 31, 2015 Senior debt $ 154,472 $ 140,494 Subordinated debt 10,303 10,404 Junior subordinated debentures — 2,870 Total $ 164,775 $ 153,768 Rate s for Long-Term Borrowings at Period End 2016 2015 2014 Weighted average coupon 1 3.7% 4.0% 4.2% Effective average after swaps 1 2.5% 2.1% 2.3% 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. |
Schedule of Other Secured Financings | Other Secured Financings by Type $ in millions At December 31, 2016 At December 31, 2015 Secured Financings Original maturities greater than one year $ 9,404 $ 7,629 Original maturities one year or less 1 1,429 1,435 Failed sales 2 285 400 Total $ 11,118 $ 9,464 1. Amounts include approximately $ 1 , 389 million of variable rate financings and approximately $ 40 million in fixed rate financings at December 31, 201 6 and approximately $ 1, 401 million of variable rate financings and approximately $ 34 million in fixed rate financings at December 31, 201 5 . 2. For more information on failed sales, see Note 13. Secured Financings with Original Maturities Greater than One Year by Maturity and Rate Type At December 31, 2016 At December 31, 2015 $ in millions Fixed Rate Variable Rate 1 Total Due in 2016 $ — $ — $ — $ 2,333 Due in 2017 86 3,291 3,377 2,122 Due in 2018 — 2,738 2,738 1,553 Due in 2019 1 2,812 2,813 1,148 Due in 2020 58 212 270 142 Due in 2021 — — — — Thereafter 94 112 206 331 Total $ 239 $ 9,165 $ 9,404 $ 7,629 Weighted average coupon rate at period-end 2 2.5% 1.0% 1.0% 1.2% 1. Variable rate borrowings bear interest based on a variety of indices, including LIBOR. Amounts include borrowings that are equity-linked, credit-linked, commodity-linked or linked to some other index. 2. Weighted average coupon was calculated utilizing U.S. and non-U.S. dollar interest rates and excludes secured financings that are linked to non-interest indices and for which fair value option was elected. |
Schedule of Failed Sales by Maturity | $ in millions At December 31, 2016 At December 31, 2015 Due in 2016 $ — $ 69 Due in 2017 112 168 Due in 2018 17 1 Due in 2019 53 54 Due in 2020 55 104 Due in 2021 28 — Thereafter 20 4 Total $ 285 $ 400 |
Commitments, Guarantees and C42
Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments, Guarantees and Contingencies [Abstract] | |
Commitments by Years to Maturity | Commitments Years to Maturity at December 31, 2016 Less $ in millions than 1 1-3 3-5 Over 5 Total Letters of credit and other financial guarantees $ 83 $ — $ 1 $ 39 $ 123 Investment activities 517 132 13 246 908 Corporate lending 1 15,156 24,144 47,725 4,421 91,446 Consumer lending 6,024 3 — 4 6,031 Residential real estate lending 88 10 100 220 418 Wholesale real estate lending 79 368 32 68 547 Forward-starting secured financing receivables 2 71,194 — — — 71,194 Underwriting 1,845 — — — 1,845 Total $ 94,986 $ 24,657 $ 47,871 $ 4,998 $ 172,512 1. Due to the nature of the Firm’s obligations under the commitments, these amounts include certain commitments participated to third parties of $ 5.6 billion. 2. Represents forward-starting securities purchased under agreements to resell and securities borrowed agreements of which $ 68.8 billion settled within three business days. |
Future Minimum Rental Commitments for Premises and Equipment | Operating Premises Leases At December 31, $ in millions 2016 2017 $ 649 2018 627 2019 549 2020 505 2021 444 Thereafter 2,958 Total $ 5,732 |
Obligations under Guarantee Arrangements | Obligations under Guarantee Arrangements at December 31, 2016 Maximum Potential Payout/Notional Carrying Amount (Asset)/ Liability Collateral/ Recourse Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Credit derivatives 1 $ 166,685 $ 140,987 $ 91,784 $ 30,274 $ 429,730 $ (1,049) $ — Other credit contracts 49 6 — 215 270 — — Non-credit derivatives 1 1,466,131 779,057 325,616 541,369 3,112,173 55,476 — Standby letters of credit and other financial guarantees issued 2 1,052 753 1,472 5,611 8,888 (164) 7,009 Market value guarantees 38 133 71 8 250 2 4 Liquidity facilities 2,812 — — — 2,812 (5) 4,854 Whole loan sales guarantees — — 2 23,321 23,323 8 — Securitization representations and warranties — — — 59,704 59,704 103 — General partner guarantees 3 30 124 237 394 44 — 1. Carrying amounts of derivative contracts are shown on a gross basis prior to cash collateral or counterparty netting. For further information on derivative contracts, see Note 4. 2. These amounts include certain issued standby letters of credit participated to third parties totaling $ 0.9 billion due to the nature of the Firm’s obligations under these arrangements. |
Variable Interest Entities an43
Variable Interest Entities and Securitization Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Securitization Activities and Variable Interest Entities [Abstract] | |
Consolidated VIEs | Assets and Liabilities by Type of Activity At December 31, 2016 At December 31, 2015 $ in millions VIE Assets VIE Liabilities VIE Assets VIE Liabilities Credit-linked notes $ 501 $ — $ 900 $ — Other structured financings 602 10 787 13 Asset-backed securitizations 1 397 283 668 423 Other 2 910 25 245 — Total $ 2,410 $ 318 $ 2,600 $ 436 Asset-backed securitizations include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets. The value of assets is determined based on the fair value of the liabilities of and the interests owned by the Firm in such VIEs because the fair values for the liabilities and interests owned are more observable. Other primarily includes certain operating entities, investment funds and structured transactions. Assets and Liabilities by Balance Sheet Caption At December 31, At December 31, $ in millions 2016 2015 Assets Cash and due from banks $ 74 $ 14 Trading assets at fair value 1,295 1,842 Customer and other receivables 13 3 Goodwill 18 — Intangible assets 177 — Other assets 833 741 Total $ 2,410 $ 2,600 Liabilities Other secured financings at fair value $ 289 $ 431 Other liabilities and accrued expenses 29 5 Total $ 318 $ 436 |
Non-Consolidated VIEs | Non-consolidated VIE Assets, Maximum and Carrying Value of Exposure to Loss At December 31, 2016 $ in millions Mortgage and Asset-Backed Securitizations Collateralized Debt Obligations Municipal Tender Option Bonds Other Structured Financings Other VIE assets that the Firm does not consolidate (unpaid principal balance) $ 101,916 $ 11,341 $ 4,857 $ 4,293 $ 39,077 Maximum exposure to loss Debt and equity interests $ 11,243 $ 1,245 $ 50 $ 1,570 $ 4,877 Derivative and other contracts — — 2,812 — 45 Commitments, guarantees and other 684 99 — 187 228 Total $ 11,927 $ 1,344 $ 2,862 $ 1,757 $ 5,150 Carrying value of exposure to loss—Assets Debt and equity interests $ 11,243 $ 1,245 $ 49 $ 1,183 $ 4,877 Derivative and other contracts — — 5 — 18 Total $ 11,243 $ 1,245 $ 54 $ 1,183 $ 4,895 At December 31, 2015 $ in millions Mortgage and Asset-Backed Securitizations Collateralized Debt Obligations Municipal Tender Option Bonds Other Structured Financings Other VIE assets that the Firm does not consolidate (unpaid principal balance) $ 126,872 $ 8,805 $ 4,654 $ 2,201 $ 20,775 Maximum exposure to loss Debt and equity interests $ 13,361 $ 1,259 $ 1 $ 1,129 $ 3,854 Derivative and other contracts — — 2,834 — 67 Commitments, guarantees and other 494 231 — 361 222 Total $ 13,855 $ 1,490 $ 2,835 $ 1,490 $ 4,143 Carrying value of exposure to loss—Assets Debt and equity interests $ 13,361 $ 1,259 $ 1 $ 685 $ 3,854 Derivative and other contracts — — 5 — 13 Total $ 13,361 $ 1,259 $ 6 $ 685 $ 3,867 Non-consolidated VIE Mortgage- and Asset-Backed Securitization Assets At December 31, 2016 At December 31, 2015 Unpaid Principal Balance Debt and Equity Interests Unpaid Principal Balance Debt and Equity Interests $ in millions Residential mortgages $ 4,775 $ 458 $ 13,787 $ 1,012 Commercial mortgages 54,021 2,656 57,313 2,871 U.S. agency collateralized mortgage obligations 14,796 2,758 13,236 2,763 Other consumer or commercial loans 28,324 5,371 42,536 6,715 Total $ 101,916 $ 11,243 $ 126,872 $ 13,361 |
Transfer of Assets with Continuing Involvement | Transfers of Assets with Continuing Involvement At December 31, 2016 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other 1 $ in millions SPE assets (unpaid principal balance) 2 $ 19,381 $ 43,104 $ 11,092 $ 11,613 Retained interests (fair value) Investment grade $ — $ 22 $ 375 $ — Non-investment grade 4 79 — 826 Total $ 4 $ 101 $ 375 $ 826 Interests purchased in the secondary market (fair value) Investment grade $ — $ 30 $ 26 $ — Non-investment grade 23 75 — — Total $ 23 $ 105 $ 26 $ — Derivative assets (fair value) $ — $ 261 $ — $ 89 Derivative liabilities (fair value) — — — 459 At December 31, 2015 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other 1 $ in millions SPE assets (unpaid principal balance) 2 $ 22,440 $ 72,760 $ 17,978 $ 12,235 Retained interests (fair value) Investment grade $ — $ 238 $ 649 $ — Non-investment grade 160 63 — 1,136 Total $ 160 $ 301 $ 649 $ 1,136 Interests purchased in the secondary market (fair value) Investment grade $ — $ 88 $ 99 $ — Non-investment grade 60 63 — 10 Total $ 60 $ 151 $ 99 $ 10 Derivative assets (fair value) $ — $ 343 $ — $ 151 Derivative liabilities (fair value) — — — 449 1. Amounts include CLO transactions managed by unrelated third parties. 2. Amounts include assets transferred by unrelated transferors . At December 31, 2016 $ in millions Level 2 Level 3 Total Retained interests (fair value) Investment grade $ 385 $ 12 $ 397 Non-investment grade 14 895 909 Total $ 399 $ 907 $ 1,306 Interests purchased in the secondary market (fair value) Investment grade $ 56 $ — $ 56 Non-investment grade 84 14 98 Total $ 140 $ 14 $ 154 Derivative assets (fair value) $ 348 $ 2 $ 350 Derivative liabilities (fair value) 98 361 459 At December 31, 2015 $ in millions Level 2 Level 3 Total Retained interests (fair value) Investment grade $ 886 $ 1 $ 887 Non-investment grade 17 1,342 1,359 Total $ 903 $ 1,343 $ 2,246 Interests purchased in the secondary market (fair value) Investment grade $ 187 $ — $ 187 Non-investment grade 112 21 133 Total $ 299 $ 21 $ 320 Derivative assets (fair value) $ 466 $ 28 $ 494 Derivative liabilities (fair value) 110 339 449 |
Schedule of Proceeds from Securitization Transactions | Proceeds from New Securitization Transactions and Retained Interests in Securitization Transactions $ in millions 2016 2015 2014 New transactions $ 18,975 $ 21,243 $ 20,553 Retained interests 2,701 3,062 3,041 Proceeds from Sales to CLO Entities Sponsored by Non-Affiliates $ in millions 2016 2015 2014 Proceeds from sale of corporate loans sold to those SPEs $ 475 $ 1,110 $ 2,388 |
Carrying and Fair Value of Assets Sold and Retained Interest Exposure | Carrying and Fair Value of Assets Sold and Retained Interest Exposure $ in millions At December 31, 2016 At December 31, 2015 Carrying value of assets derecognized at the time of sale and gross cash proceeds $ 11,209 $ 7,878 Fair value of assets sold 11,301 7,935 Fair value of derivative assets recognized in the consolidated balance sheets 128 97 Fair value of derivative liabilities recognized in the consolidated balance sheets 36 40 |
Carrying Value of Assets and Liabilities Related to Failed Sales | Carrying Value of Assets and Liabilities Related to Failed Sales At December 31, 2016 At December 31, 2015 $ in millions Assets Liabilities Assets Liabilities Failed sales $ 285 $ 285 $ 400 $ 400 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | Regulatory Capital At December 31, 2016 $ in millions Amount Ratio Minimum Ratio 1 Regulatory capital and capital ratios Common Equity Tier 1 capital $ 60,398 16.9% 5.9% Tier 1 capital 68,097 19.0% 7.4% Total capital 78,642 22.0% 9.4% Tier 1 leverage 2 — 8.4% 4.0% Assets Total RWAs $ 358,141 N/A N/A Adjusted average assets 3 811,402 N/A N/A At December 31, 2015 $ in millions Amount Ratio Minimum Ratio 1 Regulatory capital and capital ratios Common Equity Tier 1 capital $ 59,409 15.5% 4.5% Tier 1 capital 66,722 17.4% 6.0% Total capital 79,403 20.7% 8.0% Tier 1 leverage 2 — 8.3% 4.0% Assets Total RWAs $ 384,162 N/A N/A Adjusted average assets 3 803,574 N/A N/A N/A—Not Applicable 1. Percentages represent minimum regulatory capital ratios under the transitional rules. 2. Tier 1 leverage ratios are calculated under the Standardized Approach transitional rules. 3. Adjusted average assets represent the denominator of the Tier 1 leverage ratio and are composed of the average daily balance of consolidated on-balance sheet assets under U.S. GAAP during the calendar quarter ended December 31, 2016 and December 31, 2015, respectively , adjusted for disallowed goodwill, transitional int angible assets, certain deferred tax assets, certain investments in the capital instruments of unconsolidated financial institutions and other adjustments. |
MSBNA | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | MSBNA’s Regulatory Capital At December 31, 2016 $ in millions Amount Ratio Required Capital Ratio 1 Common Equity Tier 1 capital $ 13,398 16.9% 6.5% Tier 1 capital 13,398 16.9% 8.0% Total capital 14,858 18.7% 10.0% Tier 1 leverage 13,398 10.5% 5.0% At December 31, 2015 $ in millions Amount Ratio Required Capital Ratio 1 Common Equity Tier 1 capital $ 13,333 15.1% 6.5% Tier 1 capital 13,333 15.1% 8.0% Total capital 15,097 17.1% 10.0% Tier 1 leverage 13,333 10.2% 5.0% 1. Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. |
MSPBNA | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | MSPBNA’s Regulatory Capital At December 31, 2016 $ in millions Amount Ratio Required Capital Ratio 1 Common Equity Tier 1 capital $ 5,589 26.1% 6.5% Tier 1 capital 5,589 26.1% 8.0% Total capital 5,626 26.3% 10.0% Tier 1 leverage 5,589 10.6% 5.0% At December 31, 2015 $ in millions Amount Ratio Required Capital Ratio 1 Common Equity Tier 1 capital $ 4,197 26.5% 6.5% Tier 1 capital 4,197 26.5% 8.0% Total capital 4,225 26.7% 10.0% Tier 1 leverage 4,197 10.5% 5.0% 1. Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. |
Total Equity (Tables)
Total Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Total Equity | |
Changes in Shares of Common Stock Outstanding | Changes in Shares of Common Stock Outstanding in millions 2016 2015 Shares outstanding at beginning of period 1,920 1,951 Treasury stock purchases 1 (133) (78) Other 2 65 47 Shares outstanding at end of period 1,852 1,920 1. 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. |
Preferred Stock | Preferred Stock Outstanding $ in millions, except per share data Shares Outstanding Carrying Value At Liquidation At At December 31, Preference December 31, December 31, 2016 per Share 2016 2015 Series A 44,000 $ 25,000 $ 1,100 $ 1,100 C 1 519,882 1,000 408 408 E 34,500 25,000 862 862 F 34,000 25,000 850 850 G 20,000 25,000 500 500 H 52,000 25,000 1,300 1,300 I 40,000 25,000 1,000 1,000 J 60,000 25,000 1,500 1,500 Total $ 7,520 $ 7,520 1. Series C is composed of the issuance of 1,160,791 shares of Series C Preferred Stock to MUFG for an aggregate purchase price of $ 911 million, less the redemption of 640,909 shares of Series C Preferred Stock of $ 503 million, which were converted to common shares of approximately $ 705 million. Preferred Stock Issuance Description Series Issuance Date Preferred Stock Issuance Description Redemption Price per Share 1 Redeemable on or after Date Dividend per Share 2 A 3 July 2006 44,000,000 Depositary Shares, each representing a 1/1,000th of a share of Floating Rate Non-Cumulative Preferred Stock, $0.01 par value $ 25,000 July 15, 2011 $ 255.56 C 3, 4 October 13, 2008 10% Perpetual Non-Cumulative Non-Voting Preferred Stock 1,100 October 15, 2011 25.00 E 5 September 30, 2013 34,500,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 October 15, 2023 445.31 F 5 December 10, 2013 34,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 January 15, 2024 429.69 G 5 April 29, 2014 20,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual 6.625% Non-Cumulative Preferred Stock, $0.01 par value 25,000 July 15, 2019 414.06 H 5, 6 April 29, 2014 1,300,000 Depositary Shares, each representing a 1/25th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 July 15, 2019 681.25 I 5 September 18, 2014 40,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 October 15, 2024 398.44 J 5, 7 March 19, 2015 1,500,000 Depositary Shares, each representing a 1/25th interest in a share of perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, $0.01 par value 25,000 July 15, 2020 693.75 1. The redemption price per share for Series A, E, F, G and I is equivalent to $25.00 per Depositary Share. The redemption price per share for Series H and J is equivalent to $1,000 per Depositary Share. 2. Quarterly (unless noted otherwise) dividend s declared in December 2016 were paid on January 17 , 201 7 to preferred shareholders of record on December 30, 2016 . 3. The preferred stock is redeemable at the Firm’s option, in whole or in part, on or after the redemption date. 4. Dividends on the Serie s 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. 5. The preferred stock is 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). 6. Dividend on Series H preferred stock is payable semiannually until July 15, 2019 and quarterly thereafter. 7. Dividend on Series J preferred stock is payable semiannually until July 15, 2020 and quarterly thereafter. In addition to the redemption price per share, the redemption price includes any declared and unpaid dividends up to, but excluding, the date fixed for redemption, without accumulation of any undeclared dividends . |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) $ in millions Foreign Currency Translation Adjustments AFS Securities Pensions, Postretirement and Other DVA Total December 31, 2013 $ (266) $ (282) $ (545) $ — $ (1,093) OCI during the period 1 (397) 209 33 — (155) December 31, 2014 (663) (73) (512) — (1,248) OCI during the period 1 (300) (246) 138 — (408) December 31, 2015 (963) (319) (374) — (1,656) Cumulative adjustment for accounting change related to DVA 2 — — — (312) (312) OCI during the period 1 (23) (269) (100) (283) (675) December 31, 2016 $ (986) $ (588) $ (474) $ (595) $ (2,643) Amounts net of tax and noncontrolling interests. In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , a cumulative catch- up adjustment was recorded as of January 1, 2016 to move the cumulative unrealized DVA amount, net of noncontrolling interest and tax, related to outstanding lia bilities under the fair value option election from Retained earnings into AOCI. See Note 2 for further information. |
Period Changes in OCI Components | Period Changes in OCI Components 2016 1 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interest Net Foreign currency translation adjustments OCI activity $ (24) $ 9 $ (15) $ 12 $ (27) Reclassified to earnings 4 — 4 — 4 Net OCI (20) 9 (11) 12 (23) Change in net unrealized gains (losses) on AFS securities OCI activity $ (313) $ 116 $ (197) $ — $ (197) Reclassified to earnings 2 (113) 41 (72) — (72) Net OCI (426) 157 (269) — (269) Pension, postretirement and other OCI activity $ (162) $ 64 $ (98) $ — $ (98) Reclassified to earnings 2 (3) 1 (2) — (2) Net OCI (165) 65 (100) — (100) Change in net DVA OCI activity $ (429) $ 153 $ (276) $ (13) $ (263) Reclassified to earnings 2 (31) 11 (20) — (20) Net OCI (460) 164 (296) (13) (283) 2015 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interest Net Foreign currency translation adjustments OCI activity $ (119) $ (185) $ (304) $ (4) $ (300) Reclassified to earnings — — — — — Net OCI (119) (185) (304) (4) (300) Change in net unrealized gains (losses) on AFS securities OCI activity $ (305) $ 112 $ (193) $ — $ (193) Reclassified to earnings 2 (84) 31 (53) — (53) Net OCI (389) 143 (246) — (246) Pension, postretirement and other OCI activity $ 202 $ (70) $ 132 $ — $ 132 Reclassified to earnings 2 9 (3) 6 — 6 Net OCI 211 (73) 138 — 138 2014 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interest Net Foreign currency translation adjustments OCI activity $ (139) $ (352) $ (491) $ (94) $ (397) Reclassified to earnings — — — — — Net OCI (139) (352) (491) (94) (397) Change in net unrealized gains (losses) on AFS securities OCI activity $ 391 $ (158) $ 233 $ — $ 233 Reclassified to earnings 2 (40) 16 (24) — (24) Net OCI 351 (142) 209 — 209 Pension, postretirement and other OCI activity $ 41 $ (17) $ 24 $ — $ 24 Reclassified to earnings 2 12 (3) 9 — 9 Net OCI 53 (20) 33 — 33 Exclusive of 2016 cumulative adjustment for accounting change related to DVA. Amounts reclassified to earnings related to : realized gains and losses from sales of AFS securities are classified within Other revenues in the consolidated income statements ; Pension, postretirement and other are classified within Compensation and benefits expenses in the consolidated income statements; and r ealization of DVA are classified within Trading revenues in the consolidated income statements. |
Cumulative Foreign Currency Translation Adjustments | Cumulative Foreign Currency Translation Adjustments At At December 31, December 31, $ in millions 2016 2015 Resulting from net investments in subsidiaries with a non-U.S. dollar functional currency $ (2,018) $ (1,996) Resulting from realized or unrealized losses on hedges, net of tax 1,032 1,033 Total $ (986) $ (963) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted EPS | in millions, except for per share data 2016 2015 2014 Basic EPS Income from continuing operations $ 6,122 $ 6,295 $ 3,681 Income (loss) from discontinued operations 1 (16) (14) Net income 6,123 6,279 3,667 Net income applicable to noncontrolling interests 144 152 200 Net income applicable to Morgan Stanley 5,979 6,127 3,467 Less: Preferred stock dividends (468) (452) (311) Less: Allocation of (earnings) loss to participating RSUs 1 (3) (4) (4) Earnings applicable to Morgan Stanley common shareholders $ 5,508 $ 5,671 $ 3,152 Weighted average common shares outstanding 1,849 1,909 1,924 Earnings per basic common share Income from continuing operations $ 2.98 $ 2.98 $ 1.65 Income (loss) from discontinued operations — (0.01) (0.01) Earnings per basic common share $ 2.98 $ 2.97 $ 1.64 Diluted EPS Earnings applicable to Morgan Stanley common shareholders $ 5,508 $ 5,671 $ 3,152 Weighted average common shares outstanding 1,849 1,909 1,924 Effect of dilutive securities: Stock options and RSUs 1 38 44 47 Weighted average common shares outstanding and common stock equivalents 1,887 1,953 1,971 Earnings per diluted common share Income from continuing operations $ 2.92 $ 2.91 $ 1.61 Income (loss) from discontinued operations — (0.01) (0.01) Earnings per diluted common share $ 2.92 $ 2.90 $ 1.60 1. RSUs that are considered participating securities are treated as a separate class of securities in the computation of basic EPS, and, therefore, such RSUs are not included as incremental shares in the diluted EPS computations. The dilut ed EPS computations also do not include weighted average antidilutive RSUs and antidilutive stock options of 13 million shares during 2016, 12 million shares during 2015 and 15 million s hares during 2014. |
Interest Income and Interest 47
Interest Income and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Interest Income and Interest Expense | |
Schedule of Details of Interest Income and Interest Expense | $ in millions 2016 2015 2014 Interest income 1 Investment securities $ 1,142 $ 876 $ 613 Loans 2,724 2,163 1,690 Interest bearing deposits with banks 170 108 109 Securities purchased under agreements to resell and Securities borrowed 2 (374) (560) (298) Trading assets, net of Trading liabilities 3 2,131 2,262 2,109 Customer receivables and Other 4 1,223 986 1,190 Total interest income $ 7,016 $ 5,835 $ 5,413 Interest expense 1 Deposits $ 83 $ 78 $ 106 Short-term and Long-term borrowings 3,606 3,497 3,613 Securities sold under agreements to repurchase and Securities loaned 5 977 1,024 1,216 Customer payables and Other 6 (1,348) (1,857) (1,257) Total interest expense $ 3,318 $ 2,742 $ 3,678 Net interest $ 3,698 $ 3,093 $ 1,735 1. Interest income and Interest expense are recorded within the consolidated income statements depending on the nature of the instrument and related market conventions. When interest is included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. 2. Includes fees paid on Securities borrowed . 3. Interest expense on Trading liabilities is reported as a reduction to Interest income on Trading assets. 4. Inclu des interest from customer receivables and cash deposited with clearing organizations or segregated under federal and other regulations or requirements . 5. Include s fees received on Securities loaned. 6. Includes fees received from prime brokerage customers for stock loan transactions incurred to cover customers’ short positions. |
Deferred Compensation Plans (Ta
Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Compensation Arrangements [Abstract] | |
Stock-Based Compensation Expense | $ in millions 2016 2015 2014 Restricted stock units $ 1,054 $ 1,080 $ 1,212 Stock options 2 (3) 5 Performance-based stock units 81 26 45 Total 1 $ 1,137 $ 1,103 $ 1,262 1. Amounts f or 2016, 2015 and 2014 include $ 73 million, $ 68 million and $ 31 million, respectively, related to stock-based awards that were granted in 2017, 2016 and 2015 , respectively, to employees who satisfied retirement-eligible requirements under award terms that do not contain a service period. |
Vested and Unvested RSU Activity | 2016 shares in millions Number of Shares Weighted Average Grant Date Fair Value RSUs at beginning of period 105 $ 29.26 Granted 38 25.48 Conversions to common stock (40) 25.42 Canceled (3) 29.57 RSUs at end of period 1 100 29.35 1. At December 31, 201 6 , approximately 98 million RSUs with a weighted average grant date fair value of $ 29.35 were vested or expected to vest. |
Unvested RSU Activity | 2016 shares in millions Number of Shares Weighted Average Grant Date Fair Value Unvested RSUs at beginning of period 70 $ 29.91 Granted 38 25.48 Vested (40) 27.70 Canceled (3) 29.58 Unvested RSUs at end of period 1 65 28.70 1. Unvested RSUs represent awards where recipients have yet to satisfy either the explicit vesting terms or retirement-eligible requirements. At December 31, 201 6 , approximately 63 million unvested RSUs with a weighted average grant date fair value of $ 28.68 were expected to vest. |
Stock Option Activity | 2016 options in millions Number of Options Weighted Average Exercise Price Options outstanding at beginning of period 17 $ 52.26 Exercised (4) 26.90 Expired (11) 65.45 Options outstanding at end of period 1 2 28.20 Options exercisable at end of period 2 28.20 1. At December 31, 2016, approximatel y 2 million options with a weighted average exercise price of $ 28.20 were vested. |
Stock Options Outstanding and Excercisable | At December 31, 2016 options in millions Options Outstanding and Exercisable Range of Exercise Prices Number Outstanding Weighted Average Exercise Price Average Remaining Life (Years) $20.00 - $24.99 1 $ 22.98 1.1 $25.00 - $34.99 1 30.01 1.1 Total 2 |
Performance-based Stock Units Formular Table | Minimum Maximum MS Adjusted Average ROE Multiplier MS Adjusted Average ROE Multiplier Less than 5% 0.0 11.5% or more 1.5 Minimum Maximum Relative MS TSR Multiplier Relative MS TSR Multiplier Less than -50% 0.0 25% or more 1.5 |
Performance-Based Stock Unit Awards Valuation Assumptions | Grant Year Risk-Free Interest Rate Expected Stock Price Volatility Expected Dividend Yield 2016 1.1% 25.4% 0.0% 2015 0.9% 29.6% 0.0% 2014 0.8% 44.2% 0.0% |
Performance-based Stock Units Activity Table | 2016 in millions Number of Shares PSUs at beginning of period 4 Awarded 2 Conversions to common stock (2) PSUs at end of period 4 |
Deferred Compensation Expense | $ in millions 2016 2015 2014 Deferred cash-based awards 1 $ 950 $ 660 $ 1,757 Return on referenced investments 228 112 408 Total $ 1,178 $ 772 $ 2,165 1. Amounts f or 2016, 2015 and 2014 include $ 151 million, $ 144 million and $ 92 million, respectively, related to deferred cash-based awards that were granted in 2017, 2016 and 2015, respectively, to employees who satisfied retirement-eligible requirements under award terms that do not contain a service period. |
Annual Compensation Cost for 2016 Performance Year Awards | A nnual Compensation Cost for 2016 Performance Year Awards $ in millions 2017 2018 Thereafter Total Stock-based awards $ 440 $ 174 $ 149 $ 763 Deferred cash-based awards 518 263 114 895 Total $ 958 $ 437 $ 263 $ 1,658 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plans | |
Components of Net Periodic Benefit Expense (Income) | Components of the Net Periodic Benefit Expense (Income) Pension Plans $ in millions 2016 2015 2014 Service cost, benefits earned during the period $ 17 $ 19 $ 20 Interest cost on projected benefit obligation 150 152 154 Expected return on plan assets (122) (120) (110) Net amortization of prior service credit — (1) — Net amortization of actuarial loss 12 26 22 Curtailment loss — — 3 Settlement loss — 2 2 Net periodic benefit expense (income) $ 57 $ 78 $ 91 Other Postretirement Plan $ in millions 2016 2015 2014 Service cost, benefits earned during the period $ 1 $ 1 $ 2 Interest cost on projected benefit obligation 4 3 5 Net amortization of prior service credit (17) (18) (14) Net periodic benefit expense (income) $ (12) $ (14) $ (7) |
Pre-tax Amounts Recognized in Other Comprehensive Income (Loss) | Pre-tax Amounts Recognized in Other Comprehensive Income (Loss) Pension Plans $ in millions 2016 2015 2014 Net gain (loss) $ (149) $ 212 $ (18) Prior service credit (cost) 1 1 (2) Amortization of prior service credit — (1) — Amortization of net loss 12 28 27 Total $ (136) $ 240 $ 7 Other Postretirement Plan $ in millions 2016 2015 2014 Net gain (loss) $ (2) $ (3) $ (9) Prior service credit (cost) — (9) 64 Amortization of prior service credit (17) (18) (14) Total $ (19) $ (30) $ 41 |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense (Income) | Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense (Income) Pension Plans 2016 2015 2014 Discount rate 4.27% 3.86% 4.74% Expected long-term rate of return on plan assets 3.61% 3.59% 3.75% Rate of future compensation increases 3.19% 2.85% 1.06% Other Postretirement Plan 2016 2015 2014 Discount rate 4.13% 3.77% 3.77% |
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 Postretirement Plan $ in millions 2016 2015 2016 2015 Rollforward of benefit obligation Benefit obligation at beginning of year $ 3,604 $ 4,007 $ 87 $ 75 Service cost 17 19 1 1 Interest cost 150 152 4 3 Actuarial loss (gain) 1 159 (267) — 4 Plan amendments (1) (1) — 9 Plan curtailments — (9) — — Plan settlements (19) (29) — — Change in mortality assumptions 2 64 (46) 1 (1) Benefits paid (219) (194) (5) (4) Other, including foreign currency exchange rate changes (44) (28) — — Benefit obligation at end of year $ 3,711 $ 3,604 $ 88 $ 87 Rollforward of fair value of plan assets Fair value of plan assets at beginning of year $ 3,497 $ 3,705 $ — $ — Actual return on plan assets 196 9 — — Employer contributions 38 31 5 4 Benefits paid (219) (194) (5) (4) Plan settlements (19) (29) — — Other, including foreign currency exchange rate changes (62) (25) — — Fair value of plan assets at end of year $ 3,431 $ 3,497 $ — $ — Funded (unfunded) status $ (280) $ (107) $ (88) $ (87) 1. Amounts primarily reflect the impact of year-over-year discount rate fluctuations. 2. Amounts represent adoption of new mortality tables published by the Society of Actuaries. |
Summary of Funded Status | Summary of Funded Status Pension Plans Other Postretirement Plan At At At At $ in millions December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Amounts recognized in the consolidated balance sheets Assets $ 230 $ 382 $ — $ — Liabilities (510) (489) (88) (87) Net amount recognized $ (280) $ (107) $ (88) $ (87) Amounts recognized in accumulated other comprehensive income (loss) Prior service credit (cost) $ 2 $ 1 $ 17 $ 34 Net gain (loss) (763) (626) — 2 Net gain (loss) recognized $ (761) $ (625) $ 17 $ 36 |
Pension Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets | Pension Plans with Projected Benefit Obligation in Excess of the Fair Value of Plan Assets $ in millions At December 31, 2016 At December 31, 2015 Projected benefit obligation $ 566 $ 543 Fair value of plan assets 56 54 |
Pension Plans with Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Pension Plans with Accumulated Benefit Obligation in Excess of the Fair Value of Plan Assets $ in millions At December 31, 2016 At December 31, 2015 Accumulated benefit obligation $ 552 $ 531 Fair value of plan assets 56 54 |
Weighted Average Assumptions Used to Determine Benefit Obligations | Weighted Average Assumptions Used to Determine Benefit Obligation Pension Plans Other Postretirement Plan At At At At December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Discount rate 4.01% 4.27% 4.01% 4.13% Rate of future compensation increase 3.10% 3.19% N/A N/A N/A—Not Applicable |
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 December 31, 2016 December 31, 2015 Health care cost trend rate assumed for next year Medical 5.96% 6.25% Prescription 9.32% 11.00% Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.50% 4.50% Year that the rate reaches the ultimate trend rate 2038 2038 |
Effects of Changes in Assumed Health Care Cost Trend Rates | Effect of Changes in Assumed Health Care Cost Trend Rates $ in millions One-Percentage Point Increase One-Percentage Point Decrease Total 2016 postretirement service and interest cost N/M N/M December 31, 2016 postretirement benefit obligation $ 6 $ (5) |
Fair Value of Net Pension Plan Assets | Fair Value of Plan Assets and Liabilities At December 31, 2016 $ in millions Level 1 Level 2 Level 3 Total Assets Investments: Cash and cash equivalents 1 $ 55 $ — $ — $ 55 U.S. government and agency securities: U.S. Treasury securities 1,493 — — 1,493 U.S. agency securities — 423 — 423 Total U.S. government and agency securities 1,493 423 — 1,916 Corporate and other debt: Collateralized debt obligation — 13 — 13 Total corporate and other debt — 13 — 13 Derivative contracts — 159 — 159 Derivative-related cash collateral receivable — 76 — 76 Other investments — — 38 38 Total assets 2 $ 1,548 $ 671 $ 38 $ 2,257 Liabilities Derivative contracts $ — $ 225 $ — $ 225 Total liabilities $ — $ 225 $ — $ 225 At December 31, 2015 $ in millions Level 1 Level 2 Level 3 Total Assets Investments: Cash and cash equivalents 1 $ 28 $ — $ — $ 28 U.S. government and agency securities: U.S. Treasury securities 1,398 — — 1,398 U.S. agency securities — 263 — 263 Total U.S. government and agency securities 1,398 263 — 1,661 Corporate and other debt: State and municipal securities — 2 — 2 Collateralized debt obligation — 22 — 22 Total corporate and other debt — 24 — 24 Derivative contracts — 224 — 224 Other investments — — 35 35 Receivables: Other receivables 1 — 54 — 54 Total assets 2 $ 1,426 $ 565 $ 35 $ 2,026 Liabilities Derivative contracts $ — $ 65 $ — $ 65 Other liabilities 1 — 100 — 100 Total liabilities $ — $ 165 $ — $ 165 1. Cash and cash equivalents, other receivables and other liabilities are valued at their carrying value, which approximates fair value. 2. Amounts exclude Commingled trust funds and Foreign funds measured at fair value using the NAV per share, which are not classified in the fair value hierarchy. Commingled trust funds consist of investments in fixed income funds and money market funds of $ 999 million and $ 86 million, respectively, at December 31, 2016 and $ 1,239 million and $ 59 million, respectively, at December 31, 2015 . Foreign funds include investments in fixed income funds, liquidity funds and targeted cash flow funds of $ 111 million, $ 9 milli on and $ 194 million, respectively, at December 31, 2016 and $ 149 million, $ 98 million and $ 91 million, respectively, at December 31, 2015 . Fund amounts as of December 31, 2015 have been excluded from the table to conform to the current presentation. |
Changes in Level 3 Pension Assets | Changes in Level 3 Pension Assets $ in millions 2016 2015 Balance at beginning of period $ 35 $ 36 Actual return on plan assets related to assets held at end of period — (4) Purchases, sales, other settlements and issuances, net 3 3 Balance at end of period $ 38 $ 35 |
Expected Benefit Payments | Expected Future Benefit Payments At December 31, 2016 $ in millions Pension Plans Other Postretirement Plan 2017 $ 149 $ 5 2018 135 6 2019 139 6 2020 145 6 2021 153 7 2022-2026 867 31 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Components of Provision for (Benefit from) Income Taxes | Components of Provision for (Benefit from) Income Taxes $ in millions 2016 2015 2014 Current U.S. federal $ 330 $ 239 $ (604) U.S. state and local 221 144 260 Non-U.S. U.K. 196 247 88 Japan 28 19 114 Hong Kong 14 24 34 Other 1 359 333 258 Total $ 1,148 $ 1,006 $ 150 Deferred U.S. federal $ 1,336 $ 1,031 $ (207) U.S. state and local 74 43 (56) Non-U.S. U.K. 56 (56) (31) Japan 127 58 56 Hong Kong 31 50 9 Other 1 (46) 68 (11) Total $ 1,578 $ 1,194 $ (240) Provision for (benefit from) income taxes from continuing operations $ 2,726 $ 2,200 $ (90) Provision for (benefit from) income taxes from discontinued operations $ 1 $ (7) $ (5) 1. For 2016, significant Non-U.S. other jurisdictions included total tax provisions of $ 125 million, $ 46 million and $ 38 million from Brazil, India and France , respectively. For 2015, significant Non-U.S. other jurisdictions included total tax provisions of $ 68 million, $ 62 million, $ 58 million, $ 45 million and $ 42 million from Mexico, Brazil, Netherlands, India and France, respectively. For 2014, significant Non-U.S. other jurisdictions included total tax provisions of $ 44 million, $ 3 8 million and $ 38 million from Brazil, India and Mexico, respectively. |
Reconciliation of the U.S. Federal Statutory Income Tax Rate to the Effective Income Tax Rate | 2016 2015 2014 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % U.S. state and local income taxes, net of U.S. federal income tax benefits 2.2 1.4 6.5 Domestic tax credits (2.5) (1.5) (5.0) Tax exempt income (0.1) (0.2) (3.5) Non-U.S. earnings Foreign tax rate differential (3.1) (8.7) (22.5) Change in reinvestment assertion — 0.2 1.4 Change in foreign tax rates 0.1 — — Wealth Management legal entity restructuring — — (38.7) Non-deductible legal expenses — — 25.5 Other (0.8) (0.3) (1.2) Effective income tax rate 30.8 % 25.9 % (2.5) % |
Deferred Tax Assets and Liabilities | At December 31, At December 31, $ in millions 2016 2015 Gross deferred tax assets Tax credits and loss carryforwards $ 731 $ 1,987 Employee compensation and benefit plans 3,504 3,514 Valuation and liability allowances 656 846 Valuation of inventory, investments and receivables 1,062 738 Other 21 35 Total deferred tax assets 5,974 7,120 Deferred tax assets valuation allowance 164 139 Deferred tax assets after valuation allowance $ 5,810 $ 6,981 Gross deferred tax liabilities Non-U.S. operations $ 270 $ 269 Fixed assets 773 716 Total deferred tax liabilities $ 1,043 $ 985 Net deferred tax assets $ 4,767 $ 5,996 |
Rollforward of Unrecognized Tax Benefits | Unrecognized Tax Benefits $ in millions Balance at December 31, 2013 $ 4,096 Increase based on tax positions related to the current period 135 Increase based on tax positions related to prior periods 100 Decrease based on tax positions related to prior periods (2,080) Decrease related to settlements with taxing authorities (19) Decrease related to a lapse of applicable statute of limitations (4) Balance at December 31, 2014 $ 2,228 Increase based on tax positions related to the current period $ 230 Increase based on tax positions related to prior periods 114 Decrease based on tax positions related to prior periods (753) Decrease related to settlements with taxing authorities (7) Decrease related to a lapse of applicable statute of limitations (8) Balance at December 31, 2015 $ 1,804 Increase based on tax positions related to the current period $ 172 Increase based on tax positions related to prior periods 14 Decrease based on tax positions related to prior periods (134) Decrease related to settlements with taxing authorities — Decrease related to a lapse of applicable statute of limitations (5) Balance at December 31, 2016 $ 1,851 |
Earliest Tax Year Subject to Examination in Major Tax Jurisdictions | Jurisdiction Tax Year U.S. 1999 New York State and New York City 2007 Hong Kong 2010 U.K. 2010 Japan 2013 |
Income from Continuing Operations before Income Tax Expense (Benefit) | Income from Continuing Operations before Income Tax Expense (Benefit) $ in millions 2016 2015 2014 U.S. $ 5,694 $ 5,360 $ 1,805 Non-U.S. 1 3,154 3,135 1,786 $ 8,848 $ 8,495 $ 3,591 1. Non-U.S. income is defined as income generated from operations located outside the U.S. |
Segment and Geographic Inform51
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Selected Financial Information by Business Segment | Selected Financial Information by Business Segment 2016 $ in millions Institutional Securities 1, 2 Wealth Management 2 Investment Management 3 Intersegment Eliminations Total Total non-interest revenues $ 17,294 $ 11,821 $ 2,108 $ (290) $ 30,933 Interest income 4,005 3,888 5 (882) 7,016 Interest expense 3,840 359 1 (882) 3,318 Net interest 165 3,529 4 — 3,698 Net revenues $ 17,459 $ 15,350 $ 2,112 $ (290) $ 34,631 Income from continuing operations before income taxes $ 5,123 $ 3,437 $ 287 $ 1 $ 8,848 Provision for income taxes 4 1,318 1,333 75 — 2,726 Income from continuing operations 3,805 2,104 212 1 6,122 Income (loss) from discontinued operations, net of income taxes (1) — 2 — 1 Net income 3,804 2,104 214 1 6,123 Net income (loss) applicable to noncontrolling interests 155 — (11) — 144 Net income applicable to Morgan Stanley $ 3,649 $ 2,104 $ 225 $ 1 $ 5,979 2015 $ in millions Institutional Securities 1 Wealth Management Investment Management 3 Intersegment Eliminations Total Total non-interest revenues $ 17,800 $ 12,144 $ 2,331 $ (213) $ 32,062 Interest income 3,190 3,105 2 (462) 5,835 Interest expense 3,037 149 18 (462) 2,742 Net interest 153 2,956 (16) — 3,093 Net revenues $ 17,953 $ 15,100 $ 2,315 $ (213) $ 35,155 Income from continuing operations before income taxes $ 4,671 $ 3,332 $ 492 $ — $ 8,495 Provision for income taxes 4 825 1,247 128 — 2,200 Income from continuing operations 3,846 2,085 364 — 6,295 Income (loss) from discontinued operations, net of income taxes (17) — 1 — (16) Net income 3,829 2,085 365 — 6,279 Net income applicable to noncontrolling interests 133 — 19 — 152 Net income applicable to Morgan Stanley $ 3,696 $ 2,085 $ 346 $ — $ 6,127 2014 $ in millions Institutional Securities 1, 5 Wealth Management Investment Management 3 Intersegment Eliminations Total Total non-interest revenues 6 $ 17,463 $ 12,549 $ 2,728 $ (200) $ 32,540 Interest income 3,389 2,516 2 (494) 5,413 Interest expense 3,981 177 18 (498) 3,678 Net interest (592) 2,339 (16) 4 1,735 Net revenues $ 16,871 $ 14,888 $ 2,712 $ (196) $ 34,275 Income (loss) from continuing operations before income taxes $ (58) $ 2,985 $ 664 $ — $ 3,591 Provision for (benefit from) income taxes 4 (90) (207) 207 — (90) Income from continuing operations 32 3,192 457 — 3,681 Income (loss) from discontinued operations, net of income taxes (19) — 5 — (14) Net income 13 3,192 462 — 3,667 Net income applicable to noncontrolling interests 109 — 91 — 200 Net income (loss) applicable to Morgan Stanley $ (96) $ 3,192 $ 371 $ — $ 3,467 In 2016, in accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , unrealized DVA gains (losses) are recorded within OCI and, when realized, in Trading revenues. In 2015 and in 2014, the realized and unrealized DVA gains (losses) are recorded in Trading revenues. See Notes 2 and 15 for further information. Effective July 1, 2016, the Institutional Securities and Wealth Management business segment s ent ered into an agreement , whereby Institutional Securities assumed management of Wealth Management’s fixed income client-driven trading activities and employees. Institutional Securities now pays fees to Wealth Management based on distribution activity (collectively, the “Fixed Income Integration”). Prior periods have not been recast for this new inter segment agreement due to immateriality. The Firm waives a portion of its fees from certain registered money market funds that comply with the requirements of Rule 2a-7 of the Investment Company Act of 1940. These fee waivers resulted in a reduction of fees of approximately $ 91 million for 2016, $ 197 million for 2015 and $ 195 million for 2014. The Firm’s effective tax rate from continuing operations in cluded net discrete tax benefit s of $ 68 million in 201 6, primarily within Institutional Securities . The Firm’s effective tax rate from continuing operations included net discrete tax benefits of $ 564 million in 2015 within Institutional Securities . The Firm’s ef fective tax rate from continuing operatio ns included net discrete tax benefit s of $ 1,390 million and $ 839 million in 2014 within Wealth Management and Institutional Securities business segments, respectively (see Note 20). The Institutional Securities busi ness segment Net loss in 2014 was primarily driven by higher legal expenses (see Note 12). In September 2014, the Firm sold a retail property space resulting in a gain on sale of $ 141 million (within Institutional Securities $ 84 million, Wealth Management $ 40 million and Investment Management $ 17 million), which was included within Other revenues on the consolidated income statements. |
Total Assets by Business Segment | Total Assets by Business Segment At December 31, At December 31, $ in millions 2016 2015 Institutional Securities $ 629,149 $ 602,714 Wealth Management 181,135 179,708 Investment Management 1 4,665 5,043 Total 2 $ 814,949 $ 787,465 During 2 015, the Firm deconsolidated approximately $ 244 million in net assets previously attributable to nonredeemable noncontrolling interests that were primarily related to or associated with real estate funds sponsored by the Firm (see Note 13). Corporate assets have been fully allocated to the business segments. |
Net Revenues by Region | Net Revenues by Region $ in millions 2016 2015 2014 Americas $ 25,487 $ 25,080 $ 25,140 EMEA 4,994 5,353 4,772 Asia-Pacific 4,150 4,722 4,363 Net revenues $ 34,631 $ 35,155 $ 34,275 |
Total Assets by Region | Total Assets by Region At December 31, 2016 At December 31, 2015 $ in millions Americas $ 581,750 $ 569,369 EMEA 158,819 146,177 Asia-Pacific 74,380 71,919 Total $ 814,949 $ 787,465 |
Parent Company (Tables)
Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Parent Company | |
Parent Company Only - Condensed Income Statements and Comprehensive Income Statements | $ in millions 2016 2015 2014 Revenues Dividends from non-bank subsidiaries $ 2,448 $ 4,942 $ 2,641 Trading 96 574 601 Investments — — (1) Other 38 53 10 Total non-interest revenues 2,582 5,569 3,251 Interest income 3,008 3,055 2,594 Interest expense 4,036 4,073 3,970 Net interest (1,028) (1,018) (1,376) Net revenues 1,554 4,551 1,875 Non-interest expenses Non-interest expenses 126 (195) 214 Income before income taxes 1,428 4,746 1,661 Provision for (benefit from) income taxes (383) (83) (423) Net income before undistributed gain of subsidiaries 1,811 4,829 2,084 Undistributed gain of subsidiaries 4,168 1,298 1,383 Net income 5,979 6,127 3,467 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments (23) (300) (397) Change in net unrealized gains (losses) on AFS securities (269) (246) 209 Pensions, postretirement and other (100) 138 33 Change in net DVA (283) — — Comprehensive income $ 5,304 $ 5,719 $ 3,312 Net income $ 5,979 $ 6,127 $ 3,467 Preferred stock dividends and other 471 456 315 Earnings applicable to Morgan Stanley common shareholders $ 5,508 $ 5,671 $ 3,152 |
Parent Company Only - Condensed Balance Sheets | At December 31, At December 31, $ in millions, except share data 2016 2015 Assets Cash and due from banks $ 119 $ 5,169 Deposits with banking subsidiaries 3,600 4,311 Interest bearing deposits with banks — 2,421 Trading assets at fair value 139 354 Securities purchased under agreement to resell with affiliates 57,906 47,060 Advances to subsidiaries: Bank and bank holding company 28,186 18,380 Non-bank 95,684 106,192 Equity investments in subsidiaries: Bank and bank holding company 34,329 25,787 Non-bank 31,246 34,927 Other assets 4,613 6,259 Total assets $ 255,822 $ 250,860 Liabilities Short-term borrowings $ 1 $ 40 Trading liabilities at fair value 49 138 Payables to subsidiaries 26,957 29,220 Other liabilities and accrued expenses 2,040 2,189 Long-term borrowings 150,725 144,091 Total liabilities 179,772 175,678 Commitments and contingent liabilities (see Note 12) - Equity Preferred stock (see Note 15) 7,520 7,520 Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,852,481,601 and 1,920,024,027 20 20 Additional paid-in capital 23,271 24,153 Retained earnings 53,679 49,204 Employee stock trusts 2,851 2,409 Accumulated other comprehensive income (loss) (2,643) (1,656) Common stock held in treasury at cost, $0.01 par value (186,412,378 and 118,869,952) (5,797) (4,059) Common stock issued to employee stock trusts (2,851) (2,409) Total shareholders' equity 76,050 75,182 Total liabilities and equity $ 255,822 $ 250,860 |
Parent Company Only - Condensed Cash Flow Statements | $ in millions 2016 2015 2014 Cash flows from operating activities Net income $ 5,979 $ 6,127 $ 3,467 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Undistributed gain of subsidiaries (4,168) (1,298) (1,383) Other operating activities 1,367 1,084 1,176 Changes in assets and liabilities (212) (3,195) 2,305 Net cash provided by operating activities 2,966 2,718 5,565 Cash flows from investing activities Advances to and investments in subsidiaries (2,502) 1,364 (7,790) Securities purchased under agreement to resell with affiliates (10,846) (5,459) (7,853) Net cash used for investing activities (13,348) (4,095) (15,643) Cash flows from financing activities Net proceeds from (payments for) short-term borrowings (39) (655) 189 Proceeds from: Excess tax benefits associated with stock-based awards 61 211 101 Issuance of preferred stock, net of issuance costs — 1,493 2,782 Issuance of long-term borrowings 32,795 28,575 33,031 Payments for: Long-term borrowings (24,754) (22,803) (28,917) Repurchases of common stock and employee tax withholdings (3,933) (2,773) (1,458) Cash dividends (1,746) (1,455) (904) Other financing activities 66 — — Net cash provided by financing activities 2,450 2,593 4,824 Effect of exchange rate changes on cash and cash equivalents (250) (65) (208) Net increase (decrease) in cash and cash equivalents (8,182) 1,151 (5,462) Cash and cash equivalents, at beginning of period 11,901 10,750 16,212 Cash and cash equivalents, at end of period $ 3,719 $ 11,901 $ 10,750 Cash and cash equivalents include: Cash and due from banks $ 119 $ 5,169 $ 5,068 Deposits with banking subsidiaries 3,600 4,311 4,556 Interest bearing deposits with banks — 2,421 1,126 Cash and cash equivalents, at end of period $ 3,719 $ 11,901 $ 10,750 Supplemental Disclosure of Cash Flow Information Cash payments for interest were $ 3,650 million , $ 3,959 million and $ 3,652 million for 2016 , 2015 and 2014 , respectively. Cash payments fo r income taxes, net of refunds, were $ 201 million , $ 255 million and $ 187 million for 2016 , 2015 and 2014 , respectively. |
Parent Company's Long-Term Borrowings | Parent Company’s Long-Term Borrowings At At December 31, December 31, $ in millions 2016 2015 Senior debt $ 140,422 $ 130,817 Subordinated debt 10,303 13,274 Total $ 150,725 $ 144,091 |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Results | |
Schedule of Quarterly Results (Unaudited) | 2016 Quarter 1 2015 Quarter 1 $ in millions, except per share data First Second Third Fourth 2, 3 First 4 Second Third Fourth 5 Total non-interest revenues $ 6,893 $ 7,996 $ 7,906 $ 8,138 $ 9,311 $ 9,045 $ 7,005 $ 6,701 Net interest 899 913 1,003 883 596 698 762 1,037 Net revenues 7,792 8,909 8,909 9,021 9,907 9,743 7,767 7,738 Total non-interest expenses 6,054 6,426 6,528 6,775 7,052 7,016 6,293 6,299 Income from continuing operations before income taxes 1,738 2,483 2,381 2,246 2,855 2,727 1,474 1,439 Provision for income taxes 578 833 749 566 387 894 423 496 Income from continuing operations 1,160 1,650 1,632 1,680 2,468 1,833 1,051 943 Income (loss) from discontinued operations (3) (4) 8 — (5) (2) (2) (7) Net income 1,157 1,646 1,640 1,680 2,463 1,831 1,049 936 Net income applicable to noncontrolling interests 23 64 43 14 69 24 31 28 Net income applicable to Morgan Stanley $ 1,134 $ 1,582 $ 1,597 $ 1,666 $ 2,394 $ 1,807 $ 1,018 $ 908 Preferred stock dividends and other 79 157 79 156 80 142 79 155 Earnings applicable to Morgan Stanley common shareholders $ 1,055 $ 1,425 $ 1,518 $ 1,510 $ 2,314 $ 1,665 $ 939 $ 753 Earnings (loss) per basic common share 6 : Income from continuing operations $ 0.56 $ 0.77 $ 0.82 $ 0.84 $ 1.21 $ 0.87 $ 0.49 $ 0.40 Income (loss) from discontinued operations — (0.01) 0.01 — (0.01) — — — Earnings per basic common share $ 0.56 $ 0.76 $ 0.83 $ 0.84 $ 1.20 $ 0.87 $ 0.49 $ 0.40 Earnings (loss) per diluted common share 6 : Income from continuing operations $ 0.55 $ 0.75 $ 0.80 $ 0.81 $ 1.18 $ 0.85 $ 0.48 $ 0.39 Income (loss) from discontinued operations — — 0.01 — — — — — Earnings per diluted common share $ 0.55 $ 0.75 $ 0.81 $ 0.81 $ 1.18 $ 0.85 $ 0.48 $ 0.39 Dividends declared per common share 7 $ 0.15 $ 0.15 $ 0.20 $ 0.20 $ 0.10 $ 0.15 $ 0.15 $ 0.15 Book value per common share $ 35.34 $ 36.29 $ 37.11 $ 36.99 $ 33.80 $ 34.52 $ 34.97 $ 35.24 1. In 2016, in accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , unrealized DVA gains (losses) are recorded within OCI and , when realized , in Trading revenues. In 2015, the realized and unrealized DVA gains (losses) were recorded in Trading revenues. 2. The fourth quarter of 2016 included net discrete tax benefits of $ 135 million, primarily related to the remeasurement of reserves and related interest d ue to new information regarding the status of a multi-year tax authority examination (see Note 20). 3. During the fourth quarter of 2016, net revenues included losses of approximately $ 60 million on sales and markdowns of legacy limited partnership inve stments in third-party-sponsored funds within the Investment Management business segment. The fourth quarter of 2016 also included a $ 70 million provision within the Wealth Management business segment related to certain brokerage service reporting activities . 4. The first quarter of 2015 included net discrete tax benefits of $ 564 million, primarily associated with the repatriation of non-U.S. earnings at a cost lower than originally estimated due to an internal restructuring to simplify the Firm ’s legal entit y organization in the U.K. (see Note 20). 5 . During the fourth quarter of 2015, the Firm incurred specific severance costs of approximately $ 155 million, which is included in Compensation and benefits expenses in the consolidated income statements, associated with the Firm’s restructuring actions, which were recorded in the business segments, approximately, as follows: Institutional Securities: $ 125 million, Wealth Management: $ 20 million and Investment Management: $ 10 million. 6 . Summati on 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. 7 . Beginning with the dividend declared on July 20, 201 6 , the Firm increased the q uarterly common stock dividend to $ 0.20 per share from $0.15 per share. |
Introduction and Basis of Pre54
Introduction and Basis of Presentation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Cash Flows Presentation | |||
Net noncash increase in total assets due to adoption of accounting updates | $ 126 | ||
Deconsolidation in net assets previously attributable to noncontrolling interests | $ 191 | $ 1,606 | |
Reduction of assets due to deconsolidation | 222 | 1,300 | |
Real Estate Funds | |||
Consolidated Statements of Cash Flows Presentation | |||
Deconsolidation in net assets previously attributable to noncontrolling interests | 244 | 1,600 | |
Global Oil Merchanting Unit | |||
Consolidated Statements of Cash Flows Presentation | |||
Gain (loss) on sale of business | $ (71) | ||
TransMontaigne Inc. | |||
Consolidated Statements of Cash Flows Presentation | |||
Gain (loss) on sale of business | 112 | ||
Canterm Canadian Terminals Inc. | |||
Consolidated Statements of Cash Flows Presentation | |||
Gain (loss) on sale of business | $ 45 |
Significant Accounting Polici55
Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenue Recognition | |||
Performance-based fee revenue at risk | $ 397 | $ 422 | |
Accounting Standards Adopted | |||
Cumulative adjustment for accounting change related to DVA | [1] | 0 | |
Increase in assets due to consolidations | 206 | ||
Decrease in assets due to deconsolidations | 75 | ||
Net change in assets due to change in consolidation model | 131 | ||
AOCI | |||
Accounting Standards Adopted | |||
Cumulative adjustment for accounting change related to DVA | [1] | $ 312 | |
Buildings | |||
Premises, Equipment and Software Costs | |||
Estimated useful lives | 39 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 | ||
Terminals, Pipelines and Equipment | Minimum | |||
Premises, Equipment and Software Costs | |||
Estimated useful lives | 3 years | ||
Terminals, Pipelines and Equipment | Maximum | |||
Premises, Equipment and Software Costs | |||
Estimated useful lives | 30 years | ||
Software Costs | Minimum | |||
Premises, Equipment and Software Costs | |||
Estimated useful lives | 3 years | ||
Software Costs | Maximum | |||
Premises, Equipment and Software Costs | |||
Estimated useful lives | 10 years | ||
Building Structural Improvements | Maximum | |||
Premises, Equipment and Software Costs | |||
Estimated useful lives | 25 years | ||
Other Improvements | Maximum | |||
Premises, Equipment and Software Costs | |||
Estimated useful lives | 15 years | ||
[1] | Debt valuation adjustment (“DVA”) represent s the change in the fair value resulting from fluctuations in the Firm’s credit spreads and other credit factors related to liabilities carried at fair value under the fair value option , primarily related to certain Long-term and Short-term borrowings. In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , a cumulative catch - up adjustment wa s recorded as of January 1, 2016 to move the cumulative unrealized DVA amount, net of noncontrolling interest and tax, related to outstanding liabilities under the fair value option election from Retained earnings into Accumulated other comprehensive incom e (loss) (“AOCI”). See Notes 2 and 15 for further information. |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets at Fair Value | ||
Total trading assets | $ 262,154 | $ 239,505 |
Investment securities - AFS securities | 63,170 | 66,759 |
Securities purchased under agreement to resell | 302 | 806 |
Liabilities at Fair Value | ||
Deposits | 63 | 125 |
Short-term borrowings, fair value | 406 | 1,648 |
Obligation to return securities received as collateral | 20,262 | 19,316 |
Total trading liabilities | 128,194 | 128,455 |
Securities sold under agreement to repurchase | 729 | 683 |
Other secured financings | 5,041 | 2,854 |
Long-term borrowings | 38,736 | 33,045 |
Recurring | ||
Assets at Fair Value | ||
U.S. government and agency securities | 48,045 | 36,341 |
Other sovereign government obligations | 19,508 | 20,963 |
Corporate and other debt | 26,703 | 29,847 |
Corporate equities | 118,635 | 107,108 |
Securities received as collateral | 13,737 | 11,225 |
Derivative and other contracts | 31,206 | 28,613 |
Netting | (411,246) | (442,965) |
Counterparty and cash collateral netting | (51,381) | (55,562) |
Investments | 1,392 | 1,244 |
Physical commodities | 112 | 321 |
Total trading assets | 259,338 | 235,662 |
Investment securities - AFS securities | 63,170 | 66,759 |
Securities purchased under agreement to resell | 302 | 806 |
Intangible assets | 3 | 5 |
Total assets | 322,813 | 303,232 |
Liabilities at Fair Value | ||
Deposits | 63 | 125 |
Short-term borrowings, fair value | 406 | 1,648 |
U.S. government and agency securities | 11,697 | 13,913 |
Other sovereign government obligations | 23,088 | 13,528 |
Corporate and other debt | 6,157 | 5,049 |
Corporate equities | 37,674 | 47,175 |
Obligation to return securities received as collateral | 20,262 | 19,316 |
Derivative and other contracts | 29,315 | 29,474 |
Netting | (399,668) | (427,876) |
Counterparty and cash collateral netting | (39,803) | (40,473) |
Physical commodities | 1 | |
Total trading liabilities | 128,194 | 128,455 |
Securities sold under agreement to repurchase | 729 | 683 |
Other secured financings | 5,041 | 2,854 |
Long-term borrowings | 38,736 | 33,045 |
Total liabilities | 173,169 | 166,810 |
Recurring | Corporate Loans | ||
Assets at Fair Value | ||
Loans held at fair value | 7,217 | 7,286 |
Recurring | Residential Real Estate Loans | ||
Assets at Fair Value | ||
Loans held at fair value | 966 | 1,885 |
Recurring | Wholesale Real Estate Loans | ||
Assets at Fair Value | ||
Loans held at fair value | 519 | 1,447 |
Recurring | U.S. Treasury Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 25,457 | 17,658 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 10,745 | 12,932 |
Recurring | U.S. Agency Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 22,588 | 18,683 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 952 | 981 |
Recurring | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 2,605 | 1,670 |
Liabilities at Fair Value | ||
Corporate and other debt | 1 | |
Recurring | Residential Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 859 | 1,797 |
Recurring | Commercial Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 838 | 1,592 |
Liabilities at Fair Value | ||
Corporate and other debt | 2 | |
Recurring | Asset-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 211 | 519 |
Liabilities at Fair Value | ||
Corporate and other debt | 533 | |
Recurring | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 11,283 | 10,226 |
Liabilities at Fair Value | ||
Corporate and other debt | 5,606 | 5,035 |
Recurring | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 665 | 714 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 8,702 | 10,618 |
Recurring | Lending Commitments | ||
Liabilities at Fair Value | ||
Corporate and other debt | 1 | 3 |
Recurring | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 1,540 | 2,711 |
Liabilities at Fair Value | ||
Corporate and other debt | 16 | 9 |
Recurring | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 302,910 | 326,044 |
Liabilities at Fair Value | ||
Derivative and other contracts | 287,576 | 307,409 |
Recurring | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 12,229 | 22,919 |
Liabilities at Fair Value | ||
Derivative and other contracts | 13,425 | 23,665 |
Recurring | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 75,165 | 64,955 |
Liabilities at Fair Value | ||
Derivative and other contracts | 75,583 | 65,350 |
Recurring | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 38,629 | 40,289 |
Liabilities at Fair Value | ||
Derivative and other contracts | 40,514 | 46,132 |
Recurring | Commodity and Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 13,519 | 17,371 |
Liabilities at Fair Value | ||
Derivative and other contracts | 11,885 | 14,794 |
Recurring | Principal Investments | ||
Assets at Fair Value | ||
Investments | 763 | 550 |
Recurring | Private Equity Funds | ||
Assets at Fair Value | ||
Investments | 43 | |
Recurring | Other Investments | ||
Assets at Fair Value | ||
Investments | 586 | 694 |
Recurring | Level 1 | ||
Assets at Fair Value | ||
U.S. government and agency securities | 27,579 | 18,455 |
Other sovereign government obligations | 14,005 | 13,559 |
Corporate and other debt | 0 | 0 |
Corporate equities | 117,857 | 106,296 |
Securities received as collateral | 13,717 | 11,221 |
Derivative and other contracts | 977 | 414 |
Netting | (4,378) | (3,840) |
Investments | 237 | 183 |
Physical commodities | 0 | 0 |
Total trading assets | 174,372 | 150,128 |
Investment securities - AFS securities | 29,120 | 34,351 |
Securities purchased under agreement to resell | 0 | 0 |
Intangible assets | 0 | 0 |
Total assets | 203,492 | 184,479 |
Liabilities at Fair Value | ||
Deposits | 0 | 0 |
Short-term borrowings, fair value | 0 | 0 |
U.S. government and agency securities | 11,636 | 13,786 |
Other sovereign government obligations | 20,658 | 10,970 |
Corporate and other debt | 0 | 0 |
Corporate equities | 37,611 | 47,123 |
Obligation to return securities received as collateral | 20,236 | 19,312 |
Derivative and other contracts | 708 | 230 |
Netting | (4,378) | (3,840) |
Physical commodities | 0 | |
Total trading liabilities | 90,849 | 91,421 |
Securities sold under agreement to repurchase | 0 | 0 |
Other secured financings | 0 | 0 |
Long-term borrowings | 47 | 0 |
Total liabilities | 90,896 | 91,421 |
Recurring | Level 1 | U.S. Treasury Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 25,457 | 17,658 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 10,745 | 12,932 |
Recurring | Level 1 | U.S. Agency Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 2,122 | 797 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 891 | 854 |
Recurring | Level 1 | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Level 1 | Residential Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | Commercial Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Level 1 | Asset-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Level 1 | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Level 1 | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | Lending Commitments | ||
Liabilities at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,131 | 406 |
Liabilities at Fair Value | ||
Derivative and other contracts | 1,244 | 466 |
Recurring | Level 1 | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 0 | 0 |
Liabilities at Fair Value | ||
Derivative and other contracts | 0 | 0 |
Recurring | Level 1 | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 231 | 55 |
Liabilities at Fair Value | ||
Derivative and other contracts | 17 | 22 |
Recurring | Level 1 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,185 | 653 |
Liabilities at Fair Value | ||
Derivative and other contracts | 1,162 | 570 |
Recurring | Level 1 | Commodity and Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 2,808 | 3,140 |
Liabilities at Fair Value | ||
Derivative and other contracts | 2,663 | 3,012 |
Recurring | Level 1 | Principal Investments | ||
Assets at Fair Value | ||
Investments | 20 | 20 |
Recurring | Level 1 | Private Equity Funds | ||
Assets at Fair Value | ||
Investments | 0 | |
Recurring | Level 1 | Other Investments | ||
Assets at Fair Value | ||
Investments | 217 | 163 |
Recurring | Level 2 | ||
Assets at Fair Value | ||
U.S. government and agency securities | 20,392 | 17,886 |
Other sovereign government obligations | 5,497 | 7,400 |
Corporate and other debt | 20,639 | 22,309 |
Corporate equities | 333 | 379 |
Securities received as collateral | 19 | 3 |
Derivative and other contracts | 75,981 | 79,434 |
Netting | (353,543) | (380,443) |
Investments | 197 | 354 |
Physical commodities | 112 | 321 |
Total trading assets | 123,170 | 128,086 |
Investment securities - AFS securities | 34,050 | 32,408 |
Securities purchased under agreement to resell | 302 | 806 |
Intangible assets | 3 | 0 |
Total assets | 157,525 | 161,300 |
Liabilities at Fair Value | ||
Deposits | 21 | 106 |
Short-term borrowings, fair value | 404 | 1,647 |
U.S. government and agency securities | 61 | 127 |
Other sovereign government obligations | 2,430 | 2,558 |
Corporate and other debt | 6,121 | 5,045 |
Corporate equities | 29 | 35 |
Obligation to return securities received as collateral | 25 | 3 |
Derivative and other contracts | 64,569 | 63,966 |
Netting | (353,543) | (380,443) |
Physical commodities | 1 | |
Total trading liabilities | 73,236 | 71,734 |
Securities sold under agreement to repurchase | 580 | 532 |
Other secured financings | 4,607 | 2,393 |
Long-term borrowings | 36,677 | 31,058 |
Total liabilities | 115,525 | 107,470 |
Recurring | Level 2 | U.S. Treasury Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 0 | 0 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 0 | 0 |
Recurring | Level 2 | U.S. Agency Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 20,392 | 17,886 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 61 | 127 |
Recurring | Level 2 | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 2,355 | 1,651 |
Liabilities at Fair Value | ||
Corporate and other debt | 1 | |
Recurring | Level 2 | Residential Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 767 | 1,456 |
Recurring | Level 2 | Commercial Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 715 | 1,520 |
Liabilities at Fair Value | ||
Corporate and other debt | 2 | |
Recurring | Level 2 | Asset-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 209 | 494 |
Liabilities at Fair Value | ||
Corporate and other debt | 533 | |
Recurring | Level 2 | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 11,051 | 9,959 |
Liabilities at Fair Value | ||
Corporate and other debt | 5,572 | 5,035 |
Recurring | Level 2 | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 602 | 284 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Level 2 | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 3,580 | 4,682 |
Recurring | Level 2 | Lending Commitments | ||
Liabilities at Fair Value | ||
Corporate and other debt | 1 | 3 |
Recurring | Level 2 | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 1,360 | 2,263 |
Liabilities at Fair Value | ||
Corporate and other debt | 14 | 5 |
Recurring | Level 2 | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 300,406 | 323,586 |
Liabilities at Fair Value | ||
Derivative and other contracts | 285,379 | 305,151 |
Recurring | Level 2 | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 11,727 | 22,258 |
Liabilities at Fair Value | ||
Derivative and other contracts | 12,550 | 22,160 |
Recurring | Level 2 | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 74,921 | 64,608 |
Liabilities at Fair Value | ||
Derivative and other contracts | 75,510 | 65,177 |
Recurring | Level 2 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 35,736 | 38,552 |
Liabilities at Fair Value | ||
Derivative and other contracts | 37,828 | 42,447 |
Recurring | Level 2 | Commodity and Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 6,734 | 10,873 |
Liabilities at Fair Value | ||
Derivative and other contracts | 6,845 | 9,474 |
Recurring | Level 2 | Principal Investments | ||
Assets at Fair Value | ||
Investments | 0 | 44 |
Recurring | Level 2 | Private Equity Funds | ||
Assets at Fair Value | ||
Investments | 43 | |
Recurring | Level 2 | Other Investments | ||
Assets at Fair Value | ||
Investments | 154 | 310 |
Recurring | Level 3 | ||
Assets at Fair Value | ||
U.S. government and agency securities | 74 | 0 |
Other sovereign government obligations | 6 | 4 |
Corporate and other debt | 6,064 | 7,538 |
Corporate equities | 445 | 433 |
Securities received as collateral | 1 | 1 |
Derivative and other contracts | 5,629 | 4,327 |
Netting | (1,944) | (3,120) |
Investments | 958 | 707 |
Physical commodities | 0 | 0 |
Total trading assets | 13,177 | 13,010 |
Investment securities - AFS securities | 0 | 0 |
Securities purchased under agreement to resell | 0 | 0 |
Intangible assets | 0 | 5 |
Total assets | 13,177 | 13,015 |
Liabilities at Fair Value | ||
Deposits | 42 | 19 |
Short-term borrowings, fair value | 2 | 1 |
U.S. government and agency securities | 0 | 0 |
Other sovereign government obligations | 0 | 0 |
Corporate and other debt | 36 | 4 |
Corporate equities | 34 | 17 |
Obligation to return securities received as collateral | 1 | 1 |
Derivative and other contracts | 3,841 | 5,751 |
Netting | (1,944) | (3,120) |
Physical commodities | 0 | |
Total trading liabilities | 3,912 | 5,773 |
Securities sold under agreement to repurchase | 149 | 151 |
Other secured financings | 434 | 461 |
Long-term borrowings | 2,012 | 1,987 |
Total liabilities | 6,551 | 8,392 |
Recurring | Level 3 | U.S. Treasury Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 0 | 0 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 0 | 0 |
Recurring | Level 3 | U.S. Agency Securities | ||
Assets at Fair Value | ||
U.S. government and agency securities | 74 | 0 |
Liabilities at Fair Value | ||
U.S. government and agency securities | 0 | 0 |
Recurring | Level 3 | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 250 | 19 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Level 3 | Residential Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 92 | 341 |
Recurring | Level 3 | Commercial Mortgage-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 123 | 72 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Level 3 | Asset-backed Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 2 | 25 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Level 3 | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 232 | 267 |
Liabilities at Fair Value | ||
Corporate and other debt | 34 | 0 |
Recurring | Level 3 | Collateralized Debt and Loan Obligations | ||
Assets at Fair Value | ||
Corporate and other debt | 63 | 430 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | |
Recurring | Level 3 | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 5,122 | 5,936 |
Recurring | Level 3 | Lending Commitments | ||
Liabilities at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 3 | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 180 | 448 |
Liabilities at Fair Value | ||
Corporate and other debt | 2 | 4 |
Recurring | Level 3 | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,373 | 2,052 |
Liabilities at Fair Value | ||
Derivative and other contracts | 953 | 1,792 |
Recurring | Level 3 | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 502 | 661 |
Liabilities at Fair Value | ||
Derivative and other contracts | 875 | 1,505 |
Recurring | Level 3 | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 13 | 292 |
Liabilities at Fair Value | ||
Derivative and other contracts | 56 | 151 |
Recurring | Level 3 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,708 | 1,084 |
Liabilities at Fair Value | ||
Derivative and other contracts | 1,524 | 3,115 |
Recurring | Level 3 | Commodity and Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 3,977 | 3,358 |
Liabilities at Fair Value | ||
Derivative and other contracts | 2,377 | 2,308 |
Recurring | Level 3 | Principal Investments | ||
Assets at Fair Value | ||
Investments | 743 | 486 |
Recurring | Level 3 | Private Equity Funds | ||
Assets at Fair Value | ||
Investments | 0 | |
Recurring | Level 3 | Other Investments | ||
Assets at Fair Value | ||
Investments | $ 215 | $ 221 |
Fair Value Disclosures (Changes
Fair Value Disclosures (Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Recurring - Level 3 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets | |||
Assets | |||
Beginning balance | $ 5 | $ 6 | $ 8 |
Realized and unrealized gains (losses) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | (1) | (2) |
Net transfers | (5) | 0 | 0 |
Ending balance | 0 | 5 | 6 |
Unrealized gains (losses) for assets | 0 | 0 | (1) |
Deposits | |||
Liabilities | |||
Beginning balance | 19 | 0 | |
Realized and unrealized gains (losses) | 0 | (1) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 23 | 18 | |
Settlements | 0 | 0 | |
Net transfers | 0 | 0 | |
Ending balance | 42 | 19 | 0 |
Unrealized gains (losses) for liabilities | 0 | (1) | |
Short-term Borrowings | |||
Liabilities | |||
Beginning balance | 1 | 0 | 1 |
Realized and unrealized gains (losses) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 2 | 1 | 0 |
Settlements | (1) | 0 | (1) |
Net transfers | 0 | 0 | 0 |
Ending balance | 2 | 1 | 0 |
Unrealized gains (losses) for liabilities | 0 | 0 | 0 |
Securities Sold Under Agreements to Repurchase | |||
Liabilities | |||
Beginning balance | 151 | 153 | 154 |
Realized and unrealized gains (losses) | 2 | 2 | 1 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net transfers | 0 | 0 | 0 |
Ending balance | 149 | 151 | 153 |
Unrealized gains (losses) for liabilities | 2 | 2 | 1 |
Other Secured Financings | |||
Liabilities | |||
Beginning balance | 461 | 149 | 278 |
Realized and unrealized gains (losses) | (5) | 192 | (9) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 79 | 327 | 21 |
Settlements | (45) | (232) | (201) |
Net transfers | (66) | 409 | 42 |
Ending balance | 434 | 461 | 149 |
Unrealized gains (losses) for liabilities | (5) | 181 | (6) |
Long-term Borrowings | |||
Liabilities | |||
Beginning balance | 1,987 | 1,934 | 1,887 |
Realized and unrealized gains (losses) | (19) | 61 | 109 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 646 | 881 | 791 |
Settlements | (304) | (364) | (391) |
Net transfers | (336) | (403) | (244) |
Ending balance | 2,012 | 1,987 | 1,934 |
Unrealized gains (losses) for liabilities | (30) | 52 | 102 |
Trading Assets | U.S. Agency Securities | |||
Assets | |||
Beginning balance | 0 | ||
Realized and unrealized gains (losses) | (4) | ||
Purchases | 72 | ||
Sales | 0 | ||
Issuances | 0 | ||
Settlements | 0 | ||
Net transfers | 6 | ||
Ending balance | 74 | 0 | |
Unrealized gains (losses) for assets | (4) | ||
Trading Assets | Other Sovereign Government Obligations | |||
Assets | |||
Beginning balance | 4 | 41 | 27 |
Realized and unrealized gains (losses) | 1 | (1) | 1 |
Purchases | 4 | 2 | 48 |
Sales | (7) | (30) | (34) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net transfers | 4 | (8) | (1) |
Ending balance | 6 | 4 | 41 |
Unrealized gains (losses) for assets | 0 | 0 | 0 |
Trading Assets | Corporate and Other Debt | |||
Assets | |||
Beginning balance | 7,538 | 8,044 | 7,404 |
Realized and unrealized gains (losses) | (108) | 3 | 239 |
Purchases | 2,942 | 4,275 | 4,995 |
Sales | (2,003) | (1,527) | (1,932) |
Issuances | 0 | 0 | 0 |
Settlements | (1,863) | (2,956) | (2,697) |
Net transfers | (442) | (301) | 35 |
Ending balance | 6,064 | 7,538 | 8,044 |
Unrealized gains (losses) for assets | (195) | (166) | (20) |
Trading Assets | Corporate and Other Debt | State and Municipal Securities | |||
Assets | |||
Beginning balance | 19 | 0 | |
Realized and unrealized gains (losses) | 0 | 2 | |
Purchases | 249 | 3 | |
Sales | (18) | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Net transfers | 0 | 14 | |
Ending balance | 250 | 19 | 0 |
Unrealized gains (losses) for assets | 0 | 2 | |
Trading Assets | Corporate and Other Debt | Residential Mortgage-backed Securities | |||
Assets | |||
Beginning balance | 341 | 175 | 47 |
Realized and unrealized gains (losses) | (11) | 24 | 9 |
Purchases | 35 | 176 | 105 |
Sales | (265) | (83) | (14) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net transfers | (8) | 49 | 28 |
Ending balance | 92 | 341 | 175 |
Unrealized gains (losses) for assets | (10) | 12 | 4 |
Trading Assets | Corporate and Other Debt | Commercial Mortgage-backed Securities | |||
Assets | |||
Beginning balance | 72 | 96 | 108 |
Realized and unrealized gains (losses) | (56) | (28) | 65 |
Purchases | 46 | 27 | 16 |
Sales | (39) | (23) | (102) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net transfers | 100 | 0 | 9 |
Ending balance | 123 | 72 | 96 |
Unrealized gains (losses) for assets | (66) | (32) | 45 |
Trading Assets | Corporate and Other Debt | Asset-backed Securities | |||
Assets | |||
Beginning balance | 25 | 76 | 103 |
Realized and unrealized gains (losses) | (2) | (9) | 3 |
Purchases | 1 | 23 | 66 |
Sales | (19) | (30) | (96) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net transfers | (3) | (35) | 0 |
Ending balance | 2 | 25 | 76 |
Unrealized gains (losses) for assets | (1) | 0 | 9 |
Trading Assets | Corporate and Other Debt | Corporate Bonds | |||
Assets | |||
Beginning balance | 267 | 386 | 522 |
Realized and unrealized gains (losses) | 9 | (44) | 86 |
Purchases | 310 | 374 | 106 |
Sales | (357) | (381) | (306) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | (53) | 0 |
Net transfers | 3 | (15) | (22) |
Ending balance | 232 | 267 | 386 |
Unrealized gains (losses) for assets | (20) | (44) | 66 |
Trading Assets | Corporate and Other Debt | Collateralized Debt and Loan Obligations | |||
Assets | |||
Beginning balance | 430 | 1,152 | 1,468 |
Realized and unrealized gains (losses) | 11 | 123 | 142 |
Purchases | 14 | 325 | 644 |
Sales | (300) | (798) | (964) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | (344) | (143) |
Net transfers | (92) | (28) | 5 |
Ending balance | 63 | 430 | 1,152 |
Unrealized gains (losses) for assets | (5) | (19) | 27 |
Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | |||
Assets | |||
Beginning balance | 5,936 | 5,874 | 5,129 |
Realized and unrealized gains (losses) | (79) | (42) | (87) |
Purchases | 2,261 | 3,216 | 3,784 |
Sales | (954) | (207) | (415) |
Issuances | 0 | 0 | 0 |
Settlements | (1,863) | (2,478) | (2,552) |
Net transfers | (179) | (427) | 15 |
Ending balance | 5,122 | 5,936 | 5,874 |
Unrealized gains (losses) for assets | (80) | (76) | (191) |
Trading Assets | Corporate and Other Debt | Other Debt | |||
Assets | |||
Beginning balance | 448 | 285 | 27 |
Realized and unrealized gains (losses) | 20 | (23) | 21 |
Purchases | 26 | 131 | 274 |
Sales | (51) | (5) | (35) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | (81) | (2) |
Net transfers | (263) | 141 | 0 |
Ending balance | 180 | 448 | 285 |
Unrealized gains (losses) for assets | (13) | (9) | 20 |
Trading Assets | Corporate Equities | |||
Assets | |||
Beginning balance | 433 | 272 | 190 |
Realized and unrealized gains (losses) | (2) | (1) | 20 |
Purchases | 242 | 373 | 146 |
Sales | (154) | (333) | (102) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net transfers | (74) | 122 | 18 |
Ending balance | 445 | 433 | 272 |
Unrealized gains (losses) for assets | 0 | 11 | (3) |
Trading Assets | Securities Received as Collateral | |||
Assets | |||
Beginning balance | 1 | 0 | |
Realized and unrealized gains (losses) | 0 | 0 | |
Purchases | 0 | 1 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Net transfers | 0 | 0 | |
Ending balance | 1 | 1 | 0 |
Unrealized gains (losses) for assets | 0 | 0 | |
Trading Assets | Net Derivative and Other Contracts | |||
Assets | |||
Beginning balance | (1,424) | (1,784) | 79 |
Realized and unrealized gains (losses) | 1,409 | 429 | (1,048) |
Purchases | 834 | 197 | 719 |
Sales | (5) | (1) | (2) |
Issuances | (450) | (709) | (807) |
Settlements | 1,349 | 291 | (119) |
Net transfers | 75 | 153 | (606) |
Ending balance | 1,788 | (1,424) | (1,784) |
Unrealized gains (losses) for assets | 953 | 357 | (1,368) |
Liabilities | |||
Gains (losses) in fair value adjustment | (468) | ||
Trading Assets | Net Derivative and Other Contracts | Interest Rate Contracts | |||
Assets | |||
Beginning balance | 260 | (173) | 113 |
Realized and unrealized gains (losses) | 529 | (51) | (258) |
Purchases | 1 | 58 | 18 |
Sales | 0 | 0 | 0 |
Issuances | 0 | (54) | (14) |
Settlements | (83) | 207 | (43) |
Net transfers | (287) | 273 | 11 |
Ending balance | 420 | 260 | (173) |
Unrealized gains (losses) for assets | 463 | 20 | (349) |
Trading Assets | Net Derivative and Other Contracts | Credit Contracts | |||
Assets | |||
Beginning balance | (844) | (743) | (147) |
Realized and unrealized gains (losses) | (176) | (172) | (408) |
Purchases | 0 | 19 | 68 |
Sales | 0 | 0 | 0 |
Issuances | (4) | (121) | (179) |
Settlements | 623 | 196 | (15) |
Net transfers | 28 | (23) | (62) |
Ending balance | (373) | (844) | (743) |
Unrealized gains (losses) for assets | (167) | (179) | (474) |
Trading Assets | Net Derivative and Other Contracts | Foreign Exchange Contracts | |||
Assets | |||
Beginning balance | 141 | 151 | 68 |
Realized and unrealized gains (losses) | (27) | 53 | (13) |
Purchases | 0 | 4 | 7 |
Sales | 0 | 0 | 0 |
Issuances | 0 | (2) | 0 |
Settlements | (220) | (18) | 108 |
Net transfers | 63 | (47) | (19) |
Ending balance | (43) | 141 | 151 |
Unrealized gains (losses) for assets | (23) | 52 | (17) |
Trading Assets | Net Derivative and Other Contracts | Equity Contracts | |||
Assets | |||
Beginning balance | (2,031) | (2,165) | (831) |
Realized and unrealized gains (losses) | 539 | 166 | (527) |
Purchases | 809 | 81 | 339 |
Sales | (5) | (1) | (2) |
Issuances | (332) | (310) | (562) |
Settlements | 1,073 | 22 | (46) |
Net transfers | 131 | 176 | (536) |
Ending balance | 184 | (2,031) | (2,165) |
Unrealized gains (losses) for assets | 376 | 62 | (600) |
Trading Assets | Net Derivative and Other Contracts | Commodity and Other Contracts | |||
Assets | |||
Beginning balance | 1,050 | 1,146 | 876 |
Realized and unrealized gains (losses) | 544 | 433 | 158 |
Purchases | 24 | 35 | 287 |
Sales | 0 | 0 | 0 |
Issuances | (114) | (222) | (52) |
Settlements | (44) | (116) | (123) |
Net transfers | 140 | (226) | 0 |
Ending balance | 1,600 | 1,050 | 1,146 |
Unrealized gains (losses) for assets | 304 | 402 | 72 |
Trading Assets | Investments | |||
Assets | |||
Beginning balance | 707 | 1,158 | 2,698 |
Realized and unrealized gains (losses) | (32) | (1) | 70 |
Purchases | 398 | 33 | 53 |
Sales | (75) | (139) | (210) |
Issuances | 0 | 0 | 0 |
Settlements | (59) | (188) | (1,258) |
Net transfers | 19 | (156) | (195) |
Ending balance | 958 | 707 | 1,158 |
Unrealized gains (losses) for assets | (50) | (1) | 73 |
Trading Assets | Investments | Principal Investments | |||
Assets | |||
Beginning balance | 486 | 835 | 2,160 |
Realized and unrealized gains (losses) | (38) | 11 | 53 |
Purchases | 398 | 32 | 36 |
Sales | (63) | (133) | (181) |
Issuances | 0 | 0 | 0 |
Settlements | (59) | (188) | (1,258) |
Net transfers | 19 | (71) | 25 |
Ending balance | 743 | 486 | 835 |
Unrealized gains (losses) for assets | (55) | 6 | 49 |
Trading Assets | Investments | Other Investments | |||
Assets | |||
Beginning balance | 221 | 323 | 538 |
Realized and unrealized gains (losses) | 6 | (12) | 17 |
Purchases | 0 | 1 | 17 |
Sales | (12) | (6) | (29) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net transfers | 0 | (85) | (220) |
Ending balance | 215 | 221 | 323 |
Unrealized gains (losses) for assets | 5 | (7) | 24 |
Trading Liabilities | Corporate and Other Debt | |||
Liabilities | |||
Beginning balance | 4 | 121 | 72 |
Realized and unrealized gains (losses) | 4 | (5) | (5) |
Purchases | (99) | (20) | (54) |
Sales | 145 | 13 | 117 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | (104) | 0 |
Net transfers | (18) | (1) | (9) |
Ending balance | 36 | 4 | 121 |
Unrealized gains (losses) for liabilities | 0 | 5 | (3) |
Trading Liabilities | Corporate and Other Debt | Corporate Bonds | |||
Liabilities | |||
Beginning balance | 0 | 78 | 22 |
Realized and unrealized gains (losses) | 4 | 0 | (1) |
Purchases | (97) | (19) | (46) |
Sales | 145 | 6 | 117 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | (65) | 0 |
Net transfers | (18) | 0 | (14) |
Ending balance | 34 | 0 | 78 |
Unrealized gains (losses) for liabilities | 0 | 0 | 2 |
Trading Liabilities | Corporate and Other Debt | Lending Commitments | |||
Liabilities | |||
Beginning balance | 0 | 5 | 2 |
Realized and unrealized gains (losses) | 5 | (3) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Net transfers | 0 | 0 | |
Ending balance | 0 | 5 | |
Unrealized gains (losses) for liabilities | 5 | (3) | |
Trading Liabilities | Corporate and Other Debt | Other Debt | |||
Liabilities | |||
Beginning balance | 4 | 38 | 48 |
Realized and unrealized gains (losses) | 0 | 0 | (7) |
Purchases | (2) | (1) | (8) |
Sales | 0 | 7 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | (39) | 0 |
Net transfers | 0 | (1) | 5 |
Ending balance | 2 | 4 | 38 |
Unrealized gains (losses) for liabilities | 0 | 0 | (2) |
Trading Liabilities | Corporate Equities | |||
Liabilities | |||
Beginning balance | 17 | 45 | 8 |
Realized and unrealized gains (losses) | (17) | (79) | 0 |
Purchases | (10) | (86) | (3) |
Sales | 89 | 32 | 39 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net transfers | (45) | 105 | 1 |
Ending balance | 34 | 17 | 45 |
Unrealized gains (losses) for liabilities | 0 | 79 | 0 |
Trading Liabilities | Obligation to Return Securities Received as Collateral | |||
Liabilities | |||
Beginning balance | 1 | 0 | |
Realized and unrealized gains (losses) | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 1 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Net transfers | 0 | 0 | |
Ending balance | 1 | 1 | $ 0 |
Unrealized gains (losses) for liabilities | $ 0 | $ 0 |
Fair Value Disclosures (Valuati
Fair Value Disclosures (Valuation Techniques and Sensitivity of Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements) (Details) - Recurring - Level 3 $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)$ / MWh | Dec. 31, 2015USD ($)$ / MWh$ / PowerCapacityUnit | |
U.S. Agency Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 74 | |
U.S. Agency Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 96.00% | |
U.S. Agency Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 105.00% | |
U.S. Agency Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 102.00% | |
State and Municipal Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 250 | $ 19 |
State and Municipal Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 53.00% | |
State and Municipal Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 100.00% | |
State and Municipal Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 91.00% | |
Residential Mortgage-backed Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 92 | $ 341 |
Residential Mortgage-backed Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 0.00% | 0.00% |
Residential Mortgage-backed Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 30.00% | 75.00% |
Residential Mortgage-backed Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 9.00% | 32.00% |
Commercial Mortgage-backed Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 123 | $ 72 |
Commercial Mortgage-backed Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 0.00% | 0.00% |
Commercial Mortgage-backed Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 86.00% | 9.00% |
Commercial Mortgage-backed Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 36.00% | 2.00% |
Corporate Bonds | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 232 | $ 267 |
Corporate Bonds | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 3.00% | 3.00% |
EBITDA multiple | 7 | |
Corporate Bonds | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 130.00% | 119.00% |
EBITDA multiple | 9 | |
Corporate Bonds | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 70.00% | 90.00% |
EBITDA multiple | 8 | |
Corporate Bonds | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 23.00% | |
Corporate Bonds | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 33.00% | |
Corporate Bonds | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 30.00% | |
Corporate Bonds | Structured Bond model | ||
Fair Value Inputs | ||
Discount rate | 15.00% | |
Collateralized Debt and Loan Obligations | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 63 | $ 430 |
Collateralized Debt and Loan Obligations | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 0.00% | 47.00% |
Collateralized Debt and Loan Obligations | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 103.00% | 103.00% |
Collateralized Debt and Loan Obligations | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 50.00% | 67.00% |
Collateralized Debt and Loan Obligations | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit correlation | 39.00% | |
Collateralized Debt and Loan Obligations | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit correlation | 60.00% | |
Collateralized Debt and Loan Obligations | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit correlation | 49.00% | |
Loans and Lending Commitments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 5,122 | $ 5,936 |
Loans and Lending Commitments | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable loan price | 45.00% | 35.00% |
Loans and Lending Commitments | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable loan price | 100.00% | 100.00% |
Loans and Lending Commitments | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable loan price | 84.00% | 88.00% |
Loans and Lending Commitments | Corporate Loan Model | Minimum | ||
Fair Value Inputs | ||
Credit spread | 4.02% | 2.50% |
Loans and Lending Commitments | Corporate Loan Model | Maximum | ||
Fair Value Inputs | ||
Credit spread | 6.72% | 8.66% |
Loans and Lending Commitments | Corporate Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Credit spread | 5.57% | 5.31% |
Loans and Lending Commitments | Discounted Cash Flow | ||
Fair Value Inputs | ||
Implied weighted average cost of capital | 5.00% | |
Loans and Lending Commitments | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Capitalization rate | 4.00% | 4.00% |
Implied weighted average cost of capital | 6.00% | |
Loans and Lending Commitments | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Capitalization rate | 10.00% | 10.00% |
Implied weighted average cost of capital | 8.00% | |
Loans and Lending Commitments | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Capitalization rate | 4.00% | 4.00% |
Implied weighted average cost of capital | 7.00% | |
Loans and Lending Commitments | Expected Recovery | Minimum | ||
Fair Value Inputs | ||
Asset coverage | 43.00% | |
Loans and Lending Commitments | Expected Recovery | Maximum | ||
Fair Value Inputs | ||
Asset coverage | 100.00% | |
Loans and Lending Commitments | Expected Recovery | Weighted Average | ||
Fair Value Inputs | ||
Asset coverage | 83.00% | |
Loans and Lending Commitments | Margin Loan Model | Minimum | ||
Fair Value Inputs | ||
Credit spread | 0.62% | |
Discount rate | 2.00% | 1.00% |
Volatility Skew | 21.00% | 14.00% |
Loans and Lending Commitments | Margin Loan Model | Maximum | ||
Fair Value Inputs | ||
Credit spread | 4.99% | |
Discount rate | 8.00% | 4.00% |
Volatility Skew | 63.00% | 70.00% |
Loans and Lending Commitments | Margin Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Credit spread | 1.45% | |
Discount rate | 3.00% | 2.00% |
Volatility Skew | 33.00% | 33.00% |
Loans and Lending Commitments | Option Model | ||
Fair Value Inputs | ||
Volatility Skew | (1.00%) | |
Other Debt | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 180 | $ 448 |
Other Debt | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable bond price | 8.00% | |
Other Debt | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable loan price | 1.00% | 4.00% |
Other Debt | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable loan price | 74.00% | 84.00% |
Other Debt | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable loan price | 23.00% | 59.00% |
Other Debt | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Discount rate | 7.00% | |
Other Debt | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Discount rate | 12.00% | |
Other Debt | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Discount rate | 11.00% | |
Other Debt | Margin Loan Model | ||
Fair Value Inputs | ||
Discount rate | 1.00% | |
Other Debt | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 16.00% | 16.00% |
Other Debt | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 52.00% | 53.00% |
Other Debt | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 52.00% | 53.00% |
Corporate Equities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 445 | $ 433 |
Corporate Equities | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable equity price | 100.00% | 100.00% |
Corporate Equities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable price | 50.00% | |
Corporate Equities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable price | 80.00% | |
Corporate Equities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable price | 72.00% | |
Corporate Equities | Market Approach | ||
Fair Value Inputs | ||
EBITDA multiple | 9 | |
Interest Rate Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 420 | $ 260 |
Interest Rate Contracts | Option Model | ||
Fair Value Inputs | ||
Inflation volatility | 58.00% | |
Interest Rate Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Inflation volatility | 40.00% | |
Interest rate - Foreign exchange correlation | 44.00% | 43.00% |
Interest rate - Inflation correlation | (41.00%) | |
Interest rate curve correlation | 68.00% | 60.00% |
Interest rate quanto correlation | 1.00% | 5.00% |
Interest rate volatility skew | 55.00% | 43.00% |
Interest Rate Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Inflation volatility | 39.00% | |
Interest rate - Foreign exchange correlation | 43.00% | 43.00% |
Interest rate - Inflation correlation | (41.00%) | |
Interest rate curve correlation | 72.00% | 69.00% |
Interest rate quanto correlation | (5.00%) | (6.00%) |
Interest rate volatility skew | 56.00% | 40.00% |
Interest Rate Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Inflation volatility | 23.00% | |
Interest rate - Foreign exchange correlation | 28.00% | 25.00% |
Interest rate - Inflation correlation | (41.00%) | |
Interest rate curve correlation | 28.00% | 24.00% |
Interest rate quanto correlation | (17.00%) | (8.00%) |
Interest rate volatility concentration liquidity multiple | 0 | |
Interest rate volatility skew | 19.00% | 29.00% |
Interest Rate Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Inflation volatility | 55.00% | |
Interest rate - Foreign exchange correlation | 58.00% | 62.00% |
Interest rate - Inflation correlation | (39.00%) | |
Interest rate curve correlation | 96.00% | 95.00% |
Interest rate quanto correlation | 31.00% | 36.00% |
Interest rate volatility concentration liquidity multiple | 3 | |
Interest rate volatility skew | 117.00% | 82.00% |
Interest Rate Contracts | Option Model | Weighted Average | ||
Fair Value Inputs | ||
Interest rate volatility concentration liquidity multiple | 2 | |
Credit Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ (373) | $ (844) |
Credit Contracts | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Cash synthetic basis | 5.00% | 5.00% |
Comparable bond price | 0.00% | 0.00% |
Credit Contracts | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Cash synthetic basis | 12.00% | 12.00% |
Comparable bond price | 70.00% | 75.00% |
Credit Contracts | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Cash synthetic basis | 11.00% | 9.00% |
Comparable bond price | 23.00% | 24.00% |
Credit Contracts | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit correlation | 32.00% | 39.00% |
Credit Contracts | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit correlation | 70.00% | 97.00% |
Credit Contracts | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit correlation | 45.00% | 57.00% |
Foreign Exchange Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ (43) | $ 141 |
Foreign Exchange Contracts | Option Model | ||
Fair Value Inputs | ||
Interest rate curve | 0.00% | |
Foreign Exchange Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Interest rate - Foreign exchange correlation | 44.00% | 43.00% |
Interest rate quanto correlation | 1.00% | |
Interest rate volatility skew | 55.00% | 43.00% |
Foreign Exchange Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Interest rate - Foreign exchange correlation | 43.00% | 43.00% |
Interest rate quanto correlation | (5.00%) | |
Interest rate volatility skew | 56.00% | 40.00% |
Foreign Exchange Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Interest rate - Foreign exchange correlation | 28.00% | 25.00% |
Interest rate quanto correlation | (17.00%) | |
Interest rate volatility skew | 34.00% | 29.00% |
Foreign Exchange Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Interest rate - Foreign exchange correlation | 58.00% | 62.00% |
Interest rate quanto correlation | 31.00% | |
Interest rate volatility skew | 117.00% | 82.00% |
Equity Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 184 | $ (2,031) |
Equity Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Equity - Interest rate correlation | 12.00% | 16.00% |
Equity Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Equity - Interest rate correlation | 4.00% | 8.00% |
Equity Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 7.00% | 16.00% |
Equity - Equity correlation | 25.00% | 40.00% |
Equity - Foreign exchange correlation | (63.00%) | (60.00%) |
Equity - Interest rate correlation | (8.00%) | (29.00%) |
Volatility Skew | (4.00%) | (3.00%) |
Equity Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 66.00% | 65.00% |
Equity - Equity correlation | 99.00% | 99.00% |
Equity - Foreign exchange correlation | 30.00% | (11.00%) |
Equity - Interest rate correlation | 52.00% | 50.00% |
Volatility Skew | 0.00% | 0.00% |
Equity Contracts | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 33.00% | 32.00% |
Equity - Equity correlation | 73.00% | 71.00% |
Equity - Foreign exchange correlation | (43.00%) | (39.00%) |
Volatility Skew | (1.00%) | (1.00%) |
Commodity and Other Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 1,600 | $ 1,050 |
Commodity and Other Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Commodity volatility | 6.00% | 10.00% |
Cross commodity correlation | 5.00% | 43.00% |
Forward power price | $ / MWh | 7 | 3 |
Commodity and Other Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Commodity volatility | 130.00% | 92.00% |
Cross commodity correlation | 99.00% | 99.00% |
Forward power price | $ / MWh | 90 | 91 |
Commodity and Other Contracts | Option Model | Weighted Average | ||
Fair Value Inputs | ||
Commodity volatility | 18.00% | 18.00% |
Cross commodity correlation | 92.00% | 93.00% |
Forward power price | $ / MWh | 32 | 32 |
Principal Investments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 743 | $ 486 |
Principal Investments | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable equity price | 75.00% | 43.00% |
Principal Investments | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable equity price | 100.00% | 100.00% |
Principal Investments | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable equity price | 88.00% | 81.00% |
Principal Investments | Discounted Cash Flow | ||
Fair Value Inputs | ||
Implied weighted average cost of capital | 16.00% | |
Principal Investments | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Capitalization rate | 5.00% | |
Equity discount rate | 20.00% | |
Exit multiple | 8 | |
Principal Investments | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Capitalization rate | 9.00% | |
Equity discount rate | 35.00% | |
Exit multiple | 14 | |
Principal Investments | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Capitalization rate | 6.00% | |
Equity discount rate | 26.00% | |
Exit multiple | 9 | |
Principal Investments | Market Approach | Minimum | ||
Fair Value Inputs | ||
EBITDA multiple | 6 | 8 |
Forward capacity price | $ / PowerCapacityUnit | 5 | |
Principal Investments | Market Approach | Maximum | ||
Fair Value Inputs | ||
EBITDA multiple | 24 | 20 |
Forward capacity price | $ / PowerCapacityUnit | 9 | |
Principal Investments | Market Approach | Weighted Average | ||
Fair Value Inputs | ||
EBITDA multiple | 12 | 11 |
Forward capacity price | $ / PowerCapacityUnit | 7 | |
Other Investments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 215 | $ 221 |
Other Investments | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable equity price | 100.00% | 100.00% |
Other Investments | Discounted Cash Flow | ||
Fair Value Inputs | ||
Exit multiple | 10 | 13 |
Implied weighted average cost of capital | 10.00% | 10.00% |
Other Investments | Market Approach | Minimum | ||
Fair Value Inputs | ||
EBITDA multiple | 6 | 7 |
Other Investments | Market Approach | Maximum | ||
Fair Value Inputs | ||
EBITDA multiple | 13 | 14 |
Other Investments | Market Approach | Weighted Average | ||
Fair Value Inputs | ||
EBITDA multiple | 11 | 12 |
Securities Sold Under Agreements to Repurchase | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 149 | $ 151 |
Securities Sold Under Agreements to Repurchase | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Funding spread | 1.18% | 0.86% |
Securities Sold Under Agreements to Repurchase | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Funding spread | 1.27% | 1.16% |
Securities Sold Under Agreements to Repurchase | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Funding spread | 1.21% | 1.05% |
Other Secured Financings | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 434 | $ 461 |
Other Secured Financings | Discounted Cash Flow | ||
Fair Value Inputs | ||
Discount rate | 4.00% | |
Other Secured Financings | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Discount rate | 4.00% | |
Funding spread | 0.63% | 0.95% |
Other Secured Financings | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Discount rate | 13.00% | |
Funding spread | 0.92% | 1.13% |
Other Secured Financings | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Discount rate | 4.00% | |
Funding spread | 0.78% | 1.04% |
Other Secured Financings | Option Model | ||
Fair Value Inputs | ||
Volatility Skew | (1.00%) | (1.00%) |
Long-term Borrowings | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 2,012 | $ 1,987 |
Long-term Borrowings | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable equity price | 100.00% | |
Long-term Borrowings | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit correlation | 40.00% | |
Long-term Borrowings | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit correlation | 60.00% | |
Long-term Borrowings | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit correlation | 52.00% | |
Long-term Borrowings | Option Model | ||
Fair Value Inputs | ||
Equity volatility discount | 10.00% | |
Interest rate volatility skew | 25.00% | 50.00% |
Long-term Borrowings | Option Model | Simple Average | ||
Fair Value Inputs | ||
Equity volatility discount | 10.00% | |
Long-term Borrowings | Option Model | Median | ||
Fair Value Inputs | ||
Equity volatility discount | 10.00% | |
Long-term Borrowings | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 7.00% | 20.00% |
Equity - Equity correlation | 35.00% | 40.00% |
Equity - Foreign exchange correlation | (63.00%) | (70.00%) |
Equity volatility discount | 7.00% | |
Volatility Skew | (2.00%) | (1.00%) |
Long-term Borrowings | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 42.00% | 50.00% |
Equity - Equity correlation | 99.00% | 97.00% |
Equity - Foreign exchange correlation | 13.00% | (11.00%) |
Equity volatility discount | 11.00% | |
Volatility Skew | 0.00% | 0.00% |
Long-term Borrowings | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 30.00% | 29.00% |
Equity - Equity correlation | 84.00% | 77.00% |
Equity - Foreign exchange correlation | (40.00%) | (39.00%) |
Volatility Skew | (1.00%) | (1.00%) |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value of Investments Measured at NAV) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | $ 2,816 | $ 3,843 |
Commitment | 475 | 670 |
Fair Value, Investments | 2,816 | 3,843 |
Private Equity Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 1,566 | 1,917 |
Commitment | 335 | 538 |
Fair value of non-redeemable funds that will be distributed in (less than 5 years) | 100 | |
Fair value of non-redeemable funds that will be distributed in (5-10 years) | 837 | |
Fair value of non-redeemable funds that will be distributed in (over 10 years) | 629 | |
Fair Value, Investments | 1,566 | 1,917 |
Real Estate Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 1,103 | 1,337 |
Commitment | 136 | 128 |
Fair value of non-redeemable funds that will be distributed in (less than 5 years) | 81 | |
Fair value of non-redeemable funds that will be distributed in (5-10 years) | 618 | |
Fair value of non-redeemable funds that will be distributed in (over 10 years) | 404 | |
Fair Value, Investments | 1,103 | 1,337 |
Hedge Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 147 | 589 |
Commitment | 4 | 4 |
Fair Value, Investments | $ 147 | $ 589 |
Percent of investments redeemable quarterly | 52.00% | |
Percent of investments redeemable every six months | 17.00% | |
Percent of investments redeemable greater than six months | 18.00% | |
Percent of investments redeemable subject to lock-up provisions | 13.00% | |
Redemption notice period | 6 months | |
Percent of investments that cannot be redeemed currently | 20.00% | |
Redemption restriction period | 3 years |
Fair Value Disclosures (Earning
Fair Value Disclosures (Earnings Impact of Instruments Under to the Fair Value Option) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Securities Purchased Under Agreements to Resell | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | $ 4 | $ 4 | $ 5 |
Deposits | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | (2) | ||
Short-term Borrowings | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | 33 | 63 | (135) |
Securities Sold Under Agreements to Repurchase | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | (7) | 7 | (11) |
Long-term Borrowings | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | (1,223) | 1,876 | 1,229 |
Trading Revenues | Securities Purchased Under Agreements to Resell | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | (3) | (6) | (4) |
Trading Revenues | Deposits | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | (1) | ||
Trading Revenues | Short-term Borrowings | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | 33 | 63 | (136) |
Trading Revenues | Securities Sold Under Agreements to Repurchase | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | 6 | 13 | (5) |
Trading Revenues | Long-term Borrowings | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | (740) | 2,404 | 1,867 |
Interest Income (Expense) | Securities Purchased Under Agreements to Resell | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | 7 | 10 | 9 |
Interest Income (Expense) | Deposits | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | (1) | ||
Interest Income (Expense) | Short-term Borrowings | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | 0 | 0 | 1 |
Interest Income (Expense) | Securities Sold Under Agreements to Repurchase | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | (13) | (6) | (6) |
Interest Income (Expense) | Long-term Borrowings | |||
Fair Value Option Quantitative Disclosures | |||
Gains (losses) included in net revenues | $ (483) | $ (528) | $ (638) |
Fair Value Disclosures (Gains (
Fair Value Disclosures (Gains (Losses) Due to Changes in Instrument-Specific Credit Risk) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value disclosure | |||
Unrealized gain (loss) related to debt valuation adjustment, pre-tax, recognized in accumulated other comprehensive income | $ (921) | ||
Short-term and Long-term Borrowings | OCI | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument specific credit risk | (460) | $ 0 | $ 0 |
Short-term and Long-term Borrowings | Trading Revenues | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument specific credit risk | 31 | 618 | 651 |
Loans and Other Debt | OCI | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument specific credit risk | 0 | 0 | 0 |
Loans and Other Debt | Trading Revenues | |||
Fair Value disclosure | |||
Gains (losses) due to changes in instrument specific credit risk | (71) | (193) | 179 |
Lending Commitments | 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 | $ 4 | $ 12 | $ 30 |
Fair Value Disclosures (Net Dif
Fair Value Disclosures (Net Difference of Contractual Principal Amount Over Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures | ||
Loans and other debt | $ 13,495 | $ 14,095 |
Loans 90 or more days past due and/or on non-accrual status | 11,502 | 11,651 |
Short-term and long-term debt borrowings | $ 720 | $ 508 |
Fair Value Disclosures (Short-t
Fair Value Disclosures (Short-term and Long-term Borrowings Measured at Fair Value) (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Measurements | ||
Short-term and long-term borrowings | $ 39,142 | $ 34,693 |
Equity | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | 21,066 | 17,789 |
Interest Rates | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | 16,051 | 14,255 |
Foreign Exchange | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | 1,114 | 1,866 |
Credit Contracts | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | 647 | 400 |
Commodities | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | $ 264 | $ 383 |
Fair Value Disclosures (Fair 64
Fair Value Disclosures (Fair Value of Loans in Nonaccrual Status) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures | ||
Aggregate fair value of loans in non-accrual status | $ 1,536 | $ 1,853 |
Loans 90 days or more days past due | $ 787 | $ 885 |
Fair Value Disclosures (Asset65
Fair Value Disclosures (Assets Measured at Fair Value on a Non-Recurring Basis) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||
Loans | $ 81,704 | $ 72,559 | |
Intangible assets | 2,721 | 2,984 | |
Goodwill | 6,577 | 6,584 | $ 6,588 |
Other assets | 52,125 | 51,087 | |
Liabilities | |||
Other liabilities and accrued expenses | 15,896 | 18,711 | |
Liabilities | 737,772 | 711,281 | |
Fair Value | |||
Other investments | 79,623 | 71,947 | |
Nonrecurring | |||
Assets | |||
Loans | 4,913 | 5,850 | 3,336 |
Other investments | 123 | 0 | 46 |
Premises, equipment and software costs | 25 | 0 | 0 |
Intangible assets | 0 | 46 | |
Other assets | 31 | 0 | |
Total carrying value | 5,061 | 5,881 | 3,428 |
Liabilities | |||
Other liabilities and accrued expenses | 226 | 476 | 219 |
Liabilities | 226 | 476 | 219 |
Nonrecurring | Assets | |||
Fair Value | |||
Gains (losses) included in net revenues | (90) | (289) | (276) |
Nonrecurring | Loans | |||
Fair Value | |||
Gains (losses) included in net revenues | 40 | (220) | (165) |
Nonrecurring | Other Investments | |||
Fair Value | |||
Gains (losses) included in net revenues | (52) | (3) | (38) |
Nonrecurring | Premises, Equipment and Software Costs | |||
Fair Value | |||
Gains (losses) included in net revenues | (76) | (44) | (58) |
Nonrecurring | Intangible Assets | |||
Fair Value | |||
Gains (losses) included in net revenues | (2) | (6) | |
Nonrecurring | Other Assets | |||
Fair Value | |||
Gains (losses) included in net revenues | (22) | (9) | |
Nonrecurring | Liabilities | |||
Fair Value | |||
Gains (losses) included in net revenues | 121 | (207) | (165) |
Nonrecurring | Other Liabilities and Accrued Expenses | |||
Fair Value | |||
Gains (losses) included in net revenues | 121 | (207) | (165) |
Nonrecurring | Level 2 | |||
Assets | |||
Other assets | 0 | ||
Fair Value | |||
Loans | 2,470 | 3,400 | 2,386 |
Other investments | 0 | 0 | 0 |
Premises, equipment and software costs | 22 | 0 | 0 |
Intangible assets | 0 | 0 | |
Other assets | 31 | 0 | |
Total assets | 2,492 | 3,431 | 2,386 |
Other Liabilities and accrued expenses | 166 | 418 | 178 |
Total liabilities | 166 | 418 | 178 |
Nonrecurring | Level 3 | |||
Fair Value | |||
Loans | 2,443 | 2,450 | 950 |
Other investments | 123 | 0 | 46 |
Premises, equipment and software costs | 3 | 0 | 0 |
Intangible assets | 0 | 46 | |
Other assets | 0 | 0 | |
Total assets | 2,569 | 2,450 | 1,042 |
Other Liabilities and accrued expenses | 60 | 58 | 41 |
Total liabilities | $ 60 | $ 58 | $ 41 |
Fair Value Disclosures (Financi
Fair Value Disclosures (Financial Instruments Not Measured at Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Assets | ||||
Cash and due from banks | $ 22,017 | $ 19,827 | $ 19,827 | $ 21,381 |
Interest bearing deposits with banks | 21,364 | 34,256 | $ 34,256 | $ 25,603 |
Securities purchased under agreements to resell | 101,955 | 87,657 | ||
Securities borrowed | 125,236 | 142,416 | ||
Customer and other receivables | 46,460 | 45,407 | ||
Loans | 81,704 | 72,559 | ||
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 33,979 | 31,469 | ||
Financial Liabilities | ||||
Deposits | 155,863 | 156,034 | ||
Short-term borrowings | 941 | 2,173 | ||
Securities sold under agreement to repurchase | 54,628 | 36,692 | ||
Securities loaned | 15,844 | 19,358 | ||
Other secured financings | 11,118 | 9,464 | ||
Customer and other payables | 190,513 | 186,626 | ||
Long-term borrowings | 164,775 | 153,768 | ||
Lending Commitments | ||||
Additional Disclosures | ||||
Notional amount of derivative instruments held-for-investment | 97,400 | 99,500 | ||
Notional amount of derivative instruments held-for-sale | 97,400 | 99,500 | ||
Carrying Value | ||||
Financial Assets | ||||
Cash and due from banks | 22,017 | 19,827 | ||
Interest bearing deposits with banks | 21,364 | 34,256 | ||
Investment securities - HTM securities | 16,922 | 5,224 | ||
Securities purchased under agreements to resell | 101,653 | 86,851 | ||
Securities borrowed | 125,236 | 142,416 | ||
Customer and other receivables | 42,463 | 41,676 | ||
Loans | 94,248 | 85,759 | ||
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 33,979 | 31,469 | ||
Financial Liabilities | ||||
Deposits | 155,800 | 155,909 | ||
Short-term borrowings | 535 | 525 | ||
Securities sold under agreement to repurchase | 53,899 | 36,009 | ||
Securities loaned | 15,844 | 19,358 | ||
Other secured financings | 6,077 | 6,610 | ||
Customer and other payables | 187,671 | 183,895 | ||
Long-term borrowings | 126,039 | 120,723 | ||
Fair Value | ||||
Financial Assets | ||||
Cash and due from banks | 22,017 | 19,827 | ||
Interest bearing deposits with banks | 21,364 | 34,256 | ||
Investment securities - HTM securities | 16,453 | 5,188 | ||
Securities purchased under agreements to resell | 101,655 | 86,837 | ||
Securities borrowed | 125,240 | 142,414 | ||
Customer and other receivables | 42,321 | 41,576 | ||
Loans | 95,027 | 86,423 | ||
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 33,979 | 31,469 | ||
Financial Liabilities | ||||
Deposits | 155,800 | 156,163 | ||
Short-term borrowings | 535 | 525 | ||
Securities sold under agreement to repurchase | 53,913 | 36,060 | ||
Securities loaned | 15,853 | 19,382 | ||
Other secured financings | 6,082 | 6,610 | ||
Customer and other payables | 187,671 | 183,895 | ||
Long-term borrowings | 129,877 | 123,219 | ||
Fair Value | Lending Commitments | ||||
Additional Disclosures | ||||
Fair value, liability | 1,241 | 2,172 | ||
Fair Value | Level 1 | ||||
Financial Assets | ||||
Cash and due from banks | 22,017 | 19,827 | ||
Interest bearing deposits with banks | 21,364 | 34,256 | ||
Investment securities - HTM securities | 5,557 | 998 | ||
Securities purchased under agreements to resell | 0 | 0 | ||
Securities borrowed | 0 | 0 | ||
Customer and other receivables | 0 | 0 | ||
Loans | 0 | 0 | ||
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 33,979 | 31,469 | ||
Financial Liabilities | ||||
Deposits | 0 | 0 | ||
Short-term borrowings | 0 | 0 | ||
Securities sold under agreement to repurchase | 0 | 0 | ||
Securities loaned | 0 | 0 | ||
Other secured financings | 0 | 0 | ||
Customer and other payables | 0 | 0 | ||
Long-term borrowings | 0 | 0 | ||
Fair Value | Level 2 | ||||
Financial Assets | ||||
Cash and due from banks | 0 | 0 | ||
Interest bearing deposits with banks | 0 | 0 | ||
Investment securities - HTM securities | 10,896 | 4,190 | ||
Securities purchased under agreements to resell | 97,825 | 86,186 | ||
Securities borrowed | 125,093 | 142,266 | ||
Customer and other receivables | 37,746 | 36,752 | ||
Loans | 20,906 | 19,241 | ||
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 0 | 0 | ||
Financial Liabilities | ||||
Deposits | 155,800 | 156,163 | ||
Short-term borrowings | 535 | 525 | ||
Securities sold under agreement to repurchase | 50,941 | 34,150 | ||
Securities loaned | 15,853 | 19,192 | ||
Other secured financings | 4,792 | 5,333 | ||
Customer and other payables | 187,671 | 183,895 | ||
Long-term borrowings | 129,826 | 123,219 | ||
Fair Value | Level 2 | Lending Commitments | ||||
Additional Disclosures | ||||
Fair value, liability | 973 | 1,791 | ||
Fair Value | Level 3 | ||||
Financial Assets | ||||
Cash and due from banks | 0 | 0 | ||
Interest bearing deposits with banks | 0 | 0 | ||
Investment securities - HTM securities | 0 | 0 | ||
Securities purchased under agreements to resell | 3,830 | 651 | ||
Securities borrowed | 147 | 148 | ||
Customer and other receivables | 4,575 | 4,824 | ||
Loans | 74,121 | 67,182 | ||
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 0 | 0 | ||
Financial Liabilities | ||||
Deposits | 0 | 0 | ||
Short-term borrowings | 0 | 0 | ||
Securities sold under agreement to repurchase | 2,972 | 1,910 | ||
Securities loaned | 0 | 190 | ||
Other secured financings | 1,290 | 1,277 | ||
Customer and other payables | 0 | 0 | ||
Long-term borrowings | 51 | 0 | ||
Fair Value | Level 3 | Lending Commitments | ||||
Additional Disclosures | ||||
Fair value, liability | $ 268 | $ 381 |
Derivative Instruments and He67
Derivative Instruments and Hedging Activities (Derivative Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative Assets | ||
Gross amounts | $ 442,452 | $ 471,578 |
Cash collateral netting | (363,572) | (391,593) |
Counterparty netting | (47,674) | (51,372) |
Total derivative assets | 31,206 | 28,613 |
Amounts not offset against financial instruments collateral | (10,293) | (9,190) |
Amounts not offset against other cash collateral | (124) | (9) |
Net amounts | 20,789 | 19,414 |
Derivative Liabilities | ||
Gross amounts | 428,983 | 457,350 |
Cash collateral netting | (363,572) | (391,593) |
Counterparty netting | (36,096) | (36,283) |
Total derivative liabilities | 29,315 | 29,474 |
Amounts not offset against financial instruments collateral | (8,223) | (5,789) |
Amounts not offset against other cash collateral | (11) | (5) |
Net amounts | 21,081 | 23,680 |
Derivatives, Notional Amount | ||
Derivative assets | 15,286,446 | 14,749,210 |
Derivative liabilities | 13,306,511 | 14,074,223 |
Derivative assets, which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable | 3,700 | 4,200 |
Derivative liabilities, which are either not subject to master netting agreements or collateral agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable | 3,500 | 5,200 |
Bilateral OTC | ||
Derivative Assets | ||
Gross amounts | 316,493 | 340,573 |
Cash collateral netting | (243,488) | (265,707) |
Counterparty netting | (45,875) | (50,335) |
Total derivative assets | 27,130 | 24,531 |
Amounts not offset against financial instruments collateral | (10,293) | (9,190) |
Amounts not offset against other cash collateral | (124) | (9) |
Net amounts | 16,713 | 15,332 |
Derivative Liabilities | ||
Gross amounts | 299,588 | 324,671 |
Cash collateral netting | (243,488) | (265,707) |
Counterparty netting | (30,405) | (33,332) |
Total derivative liabilities | 25,695 | 25,632 |
Amounts not offset against financial instruments collateral | (7,638) | (5,384) |
Amounts not offset against other cash collateral | (10) | (5) |
Net amounts | 18,047 | 20,243 |
Derivatives, Notional Amount | ||
Derivative assets | 5,940,325 | 7,273,921 |
Derivative liabilities | 5,779,323 | 6,864,262 |
Cleared OTC | ||
Derivative Assets | ||
Gross amounts | 103,698 | 106,623 |
Cash collateral netting | (100,477) | (104,294) |
Counterparty netting | (1,799) | (1,037) |
Total derivative assets | 1,422 | 1,292 |
Amounts not offset against financial instruments collateral | 0 | 0 |
Amounts not offset against other cash collateral | 0 | 0 |
Net amounts | 1,422 | 1,292 |
Derivative Liabilities | ||
Gross amounts | 107,417 | 108,063 |
Cash collateral netting | (100,477) | (104,294) |
Counterparty netting | (5,691) | (2,951) |
Total derivative liabilities | 1,249 | 818 |
Amounts not offset against financial instruments collateral | 0 | 0 |
Amounts not offset against other cash collateral | (1) | 0 |
Net amounts | 1,248 | 818 |
Derivatives, Notional Amount | ||
Derivative assets | 6,425,804 | 5,936,757 |
Derivative liabilities | 6,283,823 | 5,837,356 |
Exchange Traded | ||
Derivative Assets | ||
Gross amounts | 22,261 | 24,382 |
Cash collateral netting | (19,607) | (21,592) |
Counterparty netting | 0 | 0 |
Total derivative assets | 2,654 | 2,790 |
Amounts not offset against financial instruments collateral | 0 | 0 |
Amounts not offset against other cash collateral | 0 | 0 |
Net amounts | 2,654 | 2,790 |
Derivative Liabilities | ||
Gross amounts | 21,978 | 24,616 |
Cash collateral netting | (19,607) | (21,592) |
Counterparty netting | 0 | 0 |
Total derivative liabilities | 2,371 | 3,024 |
Amounts not offset against financial instruments collateral | (585) | (405) |
Amounts not offset against other cash collateral | 0 | 0 |
Net amounts | 1,786 | 2,619 |
Derivatives, Notional Amount | ||
Derivative assets | 2,920,317 | 1,538,532 |
Derivative liabilities | 1,243,365 | 1,372,605 |
Designated as Accounting Hedges | ||
Derivative Assets | ||
Gross amounts | 3,240 | 4,434 |
Derivative Liabilities | ||
Gross amounts | 764 | 332 |
Derivatives, Notional Amount | ||
Derivative assets | 74,651 | 78,524 |
Derivative liabilities | 56,509 | 18,488 |
Designated as Accounting Hedges | Bilateral OTC | ||
Derivative Assets | ||
Gross amounts | 2,173 | 2,991 |
Derivative Liabilities | ||
Gross amounts | 92 | 76 |
Derivatives, Notional Amount | ||
Derivative assets | 36,680 | 42,995 |
Derivative liabilities | 3,504 | 8,164 |
Designated as Accounting Hedges | Cleared OTC | ||
Derivative Assets | ||
Gross amounts | 1,067 | 1,443 |
Derivative Liabilities | ||
Gross amounts | 672 | 256 |
Derivatives, Notional Amount | ||
Derivative assets | 37,971 | 35,529 |
Derivative liabilities | 53,005 | 10,324 |
Designated as Accounting Hedges | Exchange Traded | ||
Derivative Assets | ||
Gross amounts | 0 | 0 |
Derivative Liabilities | ||
Gross amounts | 0 | 0 |
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Designated as Accounting Hedges | Interest Rate Contracts | ||
Derivative Assets | ||
Gross amounts | 2,973 | 4,267 |
Derivative Liabilities | ||
Gross amounts | 724 | 270 |
Derivatives, Notional Amount | ||
Derivative assets | 67,912 | 72,361 |
Derivative liabilities | 53,958 | 13,429 |
Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross amounts | 1,924 | 2,825 |
Derivative Liabilities | ||
Gross amounts | 77 | 20 |
Derivatives, Notional Amount | ||
Derivative assets | 30,280 | 36,999 |
Derivative liabilities | 2,024 | 3,560 |
Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | ||
Derivative Assets | ||
Gross amounts | 1,049 | 1,442 |
Derivative Liabilities | ||
Gross amounts | 647 | 250 |
Derivatives, Notional Amount | ||
Derivative assets | 37,632 | 35,362 |
Derivative liabilities | 51,934 | 9,869 |
Designated as Accounting Hedges | Interest Rate Contracts | Exchange Traded | ||
Derivative Assets | ||
Gross amounts | 0 | 0 |
Derivative Liabilities | ||
Gross amounts | 0 | 0 |
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Designated as Accounting Hedges | Foreign Exchange Contracts | ||
Derivative Assets | ||
Gross amounts | 267 | 167 |
Derivative Liabilities | ||
Gross amounts | 40 | 62 |
Derivatives, Notional Amount | ||
Derivative assets | 6,739 | 6,163 |
Derivative liabilities | 2,551 | 5,059 |
Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross amounts | 249 | 166 |
Derivative Liabilities | ||
Gross amounts | 15 | 56 |
Derivatives, Notional Amount | ||
Derivative assets | 6,400 | 5,996 |
Derivative liabilities | 1,480 | 4,604 |
Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | ||
Derivative Assets | ||
Gross amounts | 18 | 1 |
Derivative Liabilities | ||
Gross amounts | 25 | 6 |
Derivatives, Notional Amount | ||
Derivative assets | 339 | 167 |
Derivative liabilities | 1,071 | 455 |
Designated as Accounting Hedges | Foreign Exchange Contracts | Exchange Traded | ||
Derivative Assets | ||
Gross amounts | 0 | 0 |
Derivative Liabilities | ||
Gross amounts | 0 | 0 |
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | ||
Derivative Assets | ||
Gross amounts | 439,212 | 467,144 |
Derivative Liabilities | ||
Gross amounts | 428,219 | 457,018 |
Derivatives, Notional Amount | ||
Derivative assets | 15,211,795 | 14,670,686 |
Derivative liabilities | 13,250,002 | 14,055,735 |
Not Designated as Accounting Hedges | Bilateral OTC | ||
Derivative Assets | ||
Gross amounts | 314,320 | 337,582 |
Derivative Liabilities | ||
Gross amounts | 299,496 | 324,595 |
Derivatives, Notional Amount | ||
Derivative assets | 5,903,645 | 7,230,926 |
Derivative liabilities | 5,775,819 | 6,856,098 |
Not Designated as Accounting Hedges | Cleared OTC | ||
Derivative Assets | ||
Gross amounts | 102,631 | 105,180 |
Derivative Liabilities | ||
Gross amounts | 106,745 | 107,807 |
Derivatives, Notional Amount | ||
Derivative assets | 6,387,833 | 5,901,228 |
Derivative liabilities | 6,230,818 | 5,827,032 |
Not Designated as Accounting Hedges | Exchange Traded | ||
Derivative Assets | ||
Gross amounts | 22,261 | 24,382 |
Derivative Liabilities | ||
Gross amounts | 21,978 | 24,616 |
Derivatives, Notional Amount | ||
Derivative assets | 2,920,317 | 1,538,532 |
Derivative liabilities | 1,243,365 | 1,372,605 |
Not Designated as Accounting Hedges | Interest Rate Contracts | ||
Derivative Assets | ||
Gross amounts | 299,937 | 321,777 |
Derivative Liabilities | ||
Gross amounts | 286,852 | 307,139 |
Derivatives, Notional Amount | ||
Derivative assets | 12,396,155 | 11,315,172 |
Derivative liabilities | 10,445,672 | 10,790,071 |
Not Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross amounts | 200,336 | 220,289 |
Derivative Liabilities | ||
Gross amounts | 183,063 | 203,004 |
Derivatives, Notional Amount | ||
Derivative assets | 3,586,279 | 4,348,002 |
Derivative liabilities | 3,461,927 | 4,030,039 |
Not Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | ||
Derivative Assets | ||
Gross amounts | 99,217 | 101,276 |
Derivative Liabilities | ||
Gross amounts | 103,392 | 103,852 |
Derivatives, Notional Amount | ||
Derivative assets | 6,224,104 | 5,748,525 |
Derivative liabilities | 6,086,774 | 5,682,322 |
Not Designated as Accounting Hedges | Interest Rate Contracts | Exchange Traded | ||
Derivative Assets | ||
Gross amounts | 384 | 212 |
Derivative Liabilities | ||
Gross amounts | 397 | 283 |
Derivatives, Notional Amount | ||
Derivative assets | 2,585,772 | 1,218,645 |
Derivative liabilities | 896,971 | 1,077,710 |
Not Designated as Accounting Hedges | Credit Contracts | ||
Derivative Assets | ||
Gross amounts | 12,229 | 22,919 |
Derivative Liabilities | ||
Gross amounts | 13,425 | 23,665 |
Derivatives, Notional Amount | ||
Derivative assets | 444,595 | 725,032 |
Derivative liabilities | 455,324 | 693,415 |
Not Designated as Accounting Hedges | Credit Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross amounts | 9,837 | 19,310 |
Derivative Liabilities | ||
Gross amounts | 11,024 | 19,942 |
Derivatives, Notional Amount | ||
Derivative assets | 332,641 | 585,731 |
Derivative liabilities | 358,927 | 562,027 |
Not Designated as Accounting Hedges | Credit Contracts | Cleared OTC | ||
Derivative Assets | ||
Gross amounts | 2,392 | 3,609 |
Derivative Liabilities | ||
Gross amounts | 2,401 | 3,723 |
Derivatives, Notional Amount | ||
Derivative assets | 111,954 | 139,301 |
Derivative liabilities | 96,397 | 131,388 |
Not Designated as Accounting Hedges | Credit Contracts | Exchange Traded | ||
Derivative Assets | ||
Gross amounts | 0 | 0 |
Derivative Liabilities | ||
Gross amounts | 0 | 0 |
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | ||
Derivative Assets | ||
Gross amounts | 74,898 | 64,788 |
Derivative Liabilities | ||
Gross amounts | 75,543 | 65,288 |
Derivatives, Notional Amount | ||
Derivative assets | 1,644,531 | 1,928,407 |
Derivative liabilities | 1,618,903 | 1,883,992 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross amounts | 73,645 | 64,438 |
Derivative Liabilities | ||
Gross amounts | 74,575 | 65,034 |
Derivatives, Notional Amount | ||
Derivative assets | 1,579,718 | 1,907,290 |
Derivative liabilities | 1,556,918 | 1,868,015 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | ||
Derivative Assets | ||
Gross amounts | 1,022 | 295 |
Derivative Liabilities | ||
Gross amounts | 952 | 232 |
Derivatives, Notional Amount | ||
Derivative assets | 51,775 | 13,402 |
Derivative liabilities | 47,647 | 13,322 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Exchange Traded | ||
Derivative Assets | ||
Gross amounts | 231 | 55 |
Derivative Liabilities | ||
Gross amounts | 16 | 22 |
Derivatives, Notional Amount | ||
Derivative assets | 13,038 | 7,715 |
Derivative liabilities | 14,338 | 2,655 |
Not Designated as Accounting Hedges | Equity Contracts | ||
Derivative Assets | ||
Gross amounts | 38,629 | 40,289 |
Derivative Liabilities | ||
Gross amounts | 40,514 | 46,132 |
Derivatives, Notional Amount | ||
Derivative assets | 579,628 | 546,629 |
Derivative liabilities | 593,189 | 562,000 |
Not Designated as Accounting Hedges | Equity Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross amounts | 20,710 | 20,212 |
Derivative Liabilities | ||
Gross amounts | 22,531 | 25,708 |
Derivatives, Notional Amount | ||
Derivative assets | 337,791 | 316,770 |
Derivative liabilities | 320,520 | 332,734 |
Not Designated as Accounting Hedges | Equity Contracts | Cleared OTC | ||
Derivative Assets | ||
Gross amounts | 0 | 0 |
Derivative Liabilities | ||
Gross amounts | 0 | 0 |
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | Equity Contracts | Exchange Traded | ||
Derivative Assets | ||
Gross amounts | 17,919 | 20,077 |
Derivative Liabilities | ||
Gross amounts | 17,983 | 20,424 |
Derivatives, Notional Amount | ||
Derivative assets | 241,837 | 229,859 |
Derivative liabilities | 272,669 | 229,266 |
Not Designated as Accounting Hedges | Commodity and Other Contracts | ||
Derivative Assets | ||
Gross amounts | 13,519 | 17,371 |
Derivative Liabilities | ||
Gross amounts | 11,885 | 14,794 |
Derivatives, Notional Amount | ||
Derivative assets | 146,886 | 155,446 |
Derivative liabilities | 136,914 | 126,257 |
Not Designated as Accounting Hedges | Commodity and Other Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross amounts | 9,792 | 13,333 |
Derivative Liabilities | ||
Gross amounts | 8,303 | 10,907 |
Derivatives, Notional Amount | ||
Derivative assets | 67,216 | 73,133 |
Derivative liabilities | 77,527 | 63,283 |
Not Designated as Accounting Hedges | Commodity and Other Contracts | Cleared OTC | ||
Derivative Assets | ||
Gross amounts | 0 | 0 |
Derivative Liabilities | ||
Gross amounts | 0 | 0 |
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | Commodity and Other Contracts | Exchange Traded | ||
Derivative Assets | ||
Gross amounts | 3,727 | 4,038 |
Derivative Liabilities | ||
Gross amounts | 3,582 | 3,887 |
Derivatives, Notional Amount | ||
Derivative assets | 79,670 | 82,313 |
Derivative liabilities | 59,387 | 62,974 |
Not Designated as Accounting Hedges | Future Contracts | Long | ||
Derivatives, Notional Amount | ||
Notional | 2,088,000 | 1,009,500 |
Not Designated as Accounting Hedges | Future Contracts | Short | ||
Derivatives, Notional Amount | ||
Notional | 332,400 | 653,000 |
Not Designated as Accounting Hedges | Future Contracts | Customer and Other Receivables | ||
Derivatives, Notional Amount | ||
Derivative assets, unsettled fair value | 784 | 1,145 |
Not Designated as Accounting Hedges | Future Contracts | Customer and Other Payables | ||
Derivatives, Notional Amount | ||
Derivative liabilities, unsettled fair value | $ 174 | $ 437 |
Derivative Instruments and He68
Derivative Instruments and Hedging Activities (Gains (Losses) on Fair Value Hedges and on Effective Portion of Net Investment Hedges, and Trading Revenues) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Trading Revenues by Product Type | |||
Trading revenues | $ 10,209 | $ 9,496 | $ 8,726 |
Debt valuation adjustment | 0 | 618 | 651 |
Trading revenues | 10,209 | 10,114 | 9,377 |
Interest Rate Contracts | |||
Trading Revenues by Product Type | |||
Trading revenues | 1,522 | 1,249 | 1,065 |
Foreign Exchange Contracts | |||
Trading Revenues by Product Type | |||
Trading revenues | 1,156 | 984 | 729 |
Equity Security and Index Contracts | |||
Trading Revenues by Product Type | |||
Trading revenues | 5,690 | 5,695 | 4,603 |
Commodity and Other Contracts | |||
Trading Revenues by Product Type | |||
Trading revenues | 56 | 793 | 1,055 |
Credit Contracts | |||
Trading Revenues by Product Type | |||
Trading revenues | 1,785 | 775 | 1,274 |
Fair Value Hedges | Interest Expense | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | |||
Gains (losses) recognized in earnings | (197) | (239) | (154) |
Fair Value Hedges | Interest Expense | Derivatives | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | |||
Gains (losses) recognized in earnings | (1,738) | (700) | 1,462 |
Fair Value Hedges | Interest Expense | Borrowings | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | |||
Gains (losses) recognized in earnings | 1,541 | 461 | (1,616) |
Net Investment Hedges | |||
Gains (Losses) Recognized in Other Comprehensive Income (Loss), Effective Portion | |||
Gains (losses) recognized in income related to amounts excluded from hedge effectiveness testing | (74) | (149) | (186) |
Net Investment Hedges | Foreign Exchange Contracts | |||
Gains (Losses) Recognized in Other Comprehensive Income (Loss), Effective Portion | |||
Gains (losses) recognized in OCI | $ (1) | $ 434 | $ 606 |
Derivative Instruments and He69
Derivative Instruments and Hedging Activities (Fair Value of OTC Derivatives in a Gain Position) (Details) - OTC - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Credit Derivatives | ||
Years to maturity, less than 1 | $ 19,277 | $ 20,236 |
Years to maturity, 1 - 3 | 14,274 | 17,840 |
Years to maturity, 3 - 5 | 13,511 | 10,582 |
Years to maturity, over 5 | 49,264 | 49,174 |
Cross-maturity and cash collateral netting | (67,898) | (72,018) |
Net exposure post-cash collateral | 28,428 | 25,814 |
Net exposure post-collateral | 18,135 | 16,624 |
AAA | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 150 | 203 |
Years to maturity, 1 - 3 | 428 | 453 |
Years to maturity, 3 - 5 | 918 | 827 |
Years to maturity, over 5 | 2,931 | 3,665 |
Cross-maturity and cash collateral netting | (3,900) | (4,319) |
Net exposure post-cash collateral | 527 | 829 |
Net exposure post-collateral | 485 | 715 |
AA | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 3,177 | 2,689 |
Years to maturity, 1 - 3 | 2,383 | 2,000 |
Years to maturity, 3 - 5 | 2,942 | 1,876 |
Years to maturity, over 5 | 10,194 | 9,223 |
Cross-maturity and cash collateral netting | (11,813) | (10,981) |
Net exposure post-cash collateral | 6,883 | 4,807 |
Net exposure post-collateral | 4,114 | 2,361 |
A | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 9,244 | 9,748 |
Years to maturity, 1 - 3 | 6,676 | 8,191 |
Years to maturity, 3 - 5 | 5,495 | 4,774 |
Years to maturity, over 5 | 21,322 | 20,918 |
Cross-maturity and cash collateral netting | (31,425) | (34,916) |
Net exposure post-cash collateral | 11,312 | 8,715 |
Net exposure post-collateral | 6,769 | 5,448 |
BBB | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 4,423 | 3,614 |
Years to maturity, 1 - 3 | 3,085 | 4,863 |
Years to maturity, 3 - 5 | 2,434 | 1,948 |
Years to maturity, over 5 | 13,023 | 11,801 |
Cross-maturity and cash collateral netting | (16,629) | (15,086) |
Net exposure post-cash collateral | 6,336 | 7,140 |
Net exposure post-collateral | 4,852 | 4,934 |
Non-investment Grade | ||
Credit Derivatives | ||
Years to maturity, less than 1 | 2,283 | 3,982 |
Years to maturity, 1 - 3 | 1,702 | 2,333 |
Years to maturity, 3 - 5 | 1,722 | 1,157 |
Years to maturity, over 5 | 1,794 | 3,567 |
Cross-maturity and cash collateral netting | (4,131) | (6,716) |
Net exposure post-cash collateral | 3,370 | 4,323 |
Net exposure post-collateral | $ 1,915 | $ 3,166 |
Derivative Instruments and He70
Derivative Instruments and Hedging Activities (Credit Risk-Related Contingencies) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives | ||
Net derivative liabilities with credit-risk-related contingent features | $ 22,939 | $ 23,526 |
Collateral posted | 17,040 | $ 19,070 |
Bilateral arrangement | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade | 1,231 | |
One-notch Downgrade | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade | 1,269 | |
Two-notch Downgrade | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade | $ 692 |
Derivative Instruments and He71
Derivative Instruments and Hedging Activities (Credit Derivatives and Other Credit Contracts) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Protection Sold | ||
Credit Derivatives | ||
Notional | $ 430,000 | $ 689,979 |
Fair value (asset)/liability | 0 | (24) |
Protection Sold | Less than 1 Year | ||
Credit Derivatives | ||
Notional | 166,734 | 208,713 |
Protection Sold | 1 - 3 Years | ||
Credit Derivatives | ||
Notional | 140,993 | 298,137 |
Protection Sold | 3 - 5 Years | ||
Credit Derivatives | ||
Notional | 91,784 | 149,173 |
Protection Sold | Over 5 Years | ||
Credit Derivatives | ||
Notional | 30,489 | 33,956 |
Protection Sold | Credit Default Swaps | ||
Credit Derivatives | ||
Notional | 429,730 | 689,519 |
Fair value (asset)/liability | (1,049) | 785 |
Protection Sold | Credit Default Swaps | Less than 1 Year | ||
Credit Derivatives | ||
Notional | 166,685 | 208,694 |
Protection Sold | Credit Default Swaps | 1 - 3 Years | ||
Credit Derivatives | ||
Notional | 140,987 | 298,030 |
Protection Sold | Credit Default Swaps | 3 - 5 Years | ||
Credit Derivatives | ||
Notional | 91,784 | 149,171 |
Protection Sold | Credit Default Swaps | Over 5 Years | ||
Credit Derivatives | ||
Notional | 30,274 | 33,624 |
Protection Sold | Single Name | ||
Credit Derivatives | ||
Notional | 266,918 | 420,806 |
Fair value (asset)/liability | (753) | 1,980 |
Protection Sold | Single Name | Investment Grade | ||
Credit Derivatives | ||
Notional | 195,067 | 299,670 |
Fair value (asset)/liability | (1,060) | (1,831) |
Protection Sold | Single Name | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 71,851 | 121,136 |
Fair value (asset)/liability | 307 | 3,811 |
Protection Sold | Single Name | Less than 1 Year | ||
Credit Derivatives | ||
Notional | 114,020 | 122,597 |
Protection Sold | Single Name | Less than 1 Year | Investment Grade | ||
Credit Derivatives | ||
Notional | 79,449 | 84,543 |
Protection Sold | Single Name | Less than 1 Year | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 34,571 | 38,054 |
Protection Sold | Single Name | 1 - 3 Years | ||
Credit Derivatives | ||
Notional | 96,616 | 194,728 |
Protection Sold | Single Name | 1 - 3 Years | Investment Grade | ||
Credit Derivatives | ||
Notional | 70,796 | 138,467 |
Protection Sold | Single Name | 1 - 3 Years | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 25,820 | 56,261 |
Protection Sold | Single Name | 3 - 5 Years | ||
Credit Derivatives | ||
Notional | 44,965 | 88,186 |
Protection Sold | Single Name | 3 - 5 Years | Investment Grade | ||
Credit Derivatives | ||
Notional | 34,529 | 63,754 |
Protection Sold | Single Name | 3 - 5 Years | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 10,436 | 24,432 |
Protection Sold | Single Name | Over 5 Years | ||
Credit Derivatives | ||
Notional | 11,317 | 15,295 |
Protection Sold | Single Name | Over 5 Years | Investment Grade | ||
Credit Derivatives | ||
Notional | 10,293 | 12,906 |
Protection Sold | Single Name | Over 5 Years | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 1,024 | 2,389 |
Protection Sold | Total Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Notional | 162,812 | 268,713 |
Fair value (asset)/liability | (296) | (1,195) |
Protection Sold | Total Index and Basket Credit Default Swaps | Investment Grade | ||
Credit Derivatives | ||
Notional | 92,074 | 143,742 |
Fair value (asset)/liability | (846) | (1,977) |
Protection Sold | Total Index and Basket Credit Default Swaps | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 70,738 | 124,971 |
Fair value (asset)/liability | 550 | 782 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 Year | ||
Credit Derivatives | ||
Notional | 52,665 | 86,097 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 Year | Investment Grade | ||
Credit Derivatives | ||
Notional | 26,530 | 33,507 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 Year | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 26,135 | 52,590 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 Years | ||
Credit Derivatives | ||
Notional | 44,371 | 103,302 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 Years | Investment Grade | ||
Credit Derivatives | ||
Notional | 21,388 | 59,403 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 Years | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 22,983 | 43,899 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 Years | ||
Credit Derivatives | ||
Notional | 46,819 | 60,985 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 Years | Investment Grade | ||
Credit Derivatives | ||
Notional | 35,060 | 45,505 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 Years | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 11,759 | 15,480 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 Years | ||
Credit Derivatives | ||
Notional | 18,957 | 18,329 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 Years | Investment Grade | ||
Credit Derivatives | ||
Notional | 9,096 | 5,327 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 Years | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 9,861 | 13,002 |
Protection Sold | Index and Basket | ||
Credit Derivatives | ||
Notional | 130,383 | 199,688 |
Fair value (asset)/liability | 374 | (102) |
Protection Sold | Tranched Index and Basket | ||
Credit Derivatives | ||
Notional | 32,429 | 69,025 |
Fair value (asset)/liability | (670) | (1,093) |
Protection Sold | Single Name, and Non-tranched Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Notional | 395,500 | 619,500 |
Protection Sold | Other Credit Contracts | ||
Credit Derivatives | ||
Notional | 270 | 460 |
Fair value (asset)/liability | (1,049) | 761 |
Protection Sold | Other Credit Contracts | Less than 1 Year | ||
Credit Derivatives | ||
Notional | 49 | 19 |
Protection Sold | Other Credit Contracts | 1 - 3 Years | ||
Credit Derivatives | ||
Notional | 6 | 107 |
Protection Sold | Other Credit Contracts | 3 - 5 Years | ||
Credit Derivatives | ||
Notional | 0 | 2 |
Protection Sold | Other Credit Contracts | Over 5 Years | ||
Credit Derivatives | ||
Notional | 215 | 332 |
Protection Purchased | Credit Default Swaps | ||
Credit Derivatives | ||
Notional | 470,189 | 728,928 |
Fair value (asset)/liability | 2,245 | (39) |
Protection Purchased | Single Name | ||
Credit Derivatives | ||
Notional | 269,623 | 405,361 |
Fair value (asset)/liability | 826 | (2,079) |
Protection Purchased | Index and Basket | ||
Credit Derivatives | ||
Notional | 122,061 | 173,936 |
Fair value (asset)/liability | (481) | (82) |
Protection Purchased | Tranched Index and Basket | ||
Credit Derivatives | ||
Notional | 78,505 | 149,631 |
Fair value (asset)/liability | 1,900 | 2,122 |
Protection Purchased | Single Name, and Non-tranched Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Notional | $ 389,200 | $ 577,700 |
Investment Securities (AFS and
Investment Securities (AFS and HTM Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Investment securities | ||
Total Investment securities: Amortized cost | $ 81,028 | $ 72,493 |
Total Investment securities: Gross unrealized gains | 43 | 44 |
Total Investment securities: Gross unrealized losses | 1,448 | 590 |
Total Investment securities: Fair value | 79,623 | 71,947 |
AFS securities | ||
Total AFS securities: Fair value | $ 63,170 | $ 66,759 |
FFELP Student Loan Asset-backed Securities | ||
Investment securities | ||
Percent of principal balance and interest guaranteed by the U.S. Department of Education | 95.00% | 95.00% |
AFS Securities | ||
AFS securities | ||
Total AFS securities: Amortized cost | $ 64,106 | $ 67,269 |
Total AFS securities: Gross unrealized gains | 41 | 43 |
Total AFS securities: Gross unrealized losses | 977 | 553 |
Total AFS securities: Fair value | 63,170 | 66,759 |
AFS Debt Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 64,091 | 67,254 |
AFS debt securities: Gross unrealized gains | 41 | 43 |
AFS debt securities: Gross unrealized losses | 968 | 545 |
AFS debt securities: Fair value | 63,164 | 66,752 |
AFS Debt Securities | U.S. Government and Agency Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 50,719 | 52,658 |
AFS debt securities: Gross unrealized gains | 15 | 34 |
AFS debt securities: Gross unrealized losses | 823 | 299 |
AFS debt securities: Fair value | 49,911 | 52,393 |
AFS Debt Securities | U.S. Treasury Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 28,371 | 31,555 |
AFS debt securities: Gross unrealized gains | 1 | 5 |
AFS debt securities: Gross unrealized losses | 545 | 143 |
AFS debt securities: Fair value | 27,827 | 31,417 |
AFS Debt Securities | U.S. Agency Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 22,348 | 21,103 |
AFS debt securities: Gross unrealized gains | 14 | 29 |
AFS debt securities: Gross unrealized losses | 278 | 156 |
AFS debt securities: Fair value | 22,084 | 20,976 |
AFS Debt Securities | Corporate and Other Debt | ||
AFS securities | ||
AFS debt securities: Amortized cost | 13,372 | 14,596 |
AFS debt securities: Gross unrealized gains | 26 | 9 |
AFS debt securities: Gross unrealized losses | 145 | 246 |
AFS debt securities: Fair value | 13,253 | 14,359 |
AFS Debt Securities | Commercial Mortgage-backed Securities: Agency | ||
AFS securities | ||
AFS debt securities: Amortized cost | 1,850 | 1,906 |
AFS debt securities: Gross unrealized gains | 2 | 1 |
AFS debt securities: Gross unrealized losses | 44 | 60 |
AFS debt securities: Fair value | 1,808 | 1,847 |
AFS Debt Securities | Commercial Mortgage-backed Securities: Non-Agency | ||
AFS securities | ||
AFS debt securities: Amortized cost | 2,250 | 2,220 |
AFS debt securities: Gross unrealized gains | 11 | 3 |
AFS debt securities: Gross unrealized losses | 16 | 25 |
AFS debt securities: Fair value | 2,245 | 2,198 |
AFS Debt Securities | Auto Loan Asset-backed Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 1,509 | 2,556 |
AFS debt securities: Gross unrealized gains | 1 | 0 |
AFS debt securities: Gross unrealized losses | 1 | 9 |
AFS debt securities: Fair value | 1,509 | 2,547 |
AFS Debt Securities | Corporate Bonds | ||
AFS securities | ||
AFS debt securities: Amortized cost | 3,836 | 3,780 |
AFS debt securities: Gross unrealized gains | 7 | 5 |
AFS debt securities: Gross unrealized losses | 22 | 30 |
AFS debt securities: Fair value | 3,821 | 3,755 |
AFS Debt Securities | Collateralized Loan Obligations | ||
AFS securities | ||
AFS debt securities: Amortized cost | 540 | 502 |
AFS debt securities: Gross unrealized gains | 0 | 0 |
AFS debt securities: Gross unrealized losses | 1 | 7 |
AFS debt securities: Fair value | 539 | 495 |
AFS Debt Securities | FFELP Student Loan Asset-backed Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 3,387 | 3,632 |
AFS debt securities: Gross unrealized gains | 5 | 0 |
AFS debt securities: Gross unrealized losses | 61 | 115 |
AFS debt securities: Fair value | 3,331 | 3,517 |
AFS Equity Securities | ||
AFS securities | ||
AFS equity securities: Amortized cost | 15 | 15 |
AFS equity securities: Gross unrealized gains | 0 | 0 |
AFS equity securities: Gross unrealized losses | 9 | 8 |
AFS equity securities: Fair value | 6 | 7 |
HTM securities | ||
HTM securities: | ||
HTM: Amortized Cost | 16,922 | 5,224 |
HTM: Gross unrealized gains | 2 | 1 |
HTM: Gross unrealized losses | 471 | 37 |
HTM: Fair value | 16,453 | 5,188 |
HTM securities | U.S. Treasury Securities | ||
HTM securities: | ||
HTM: Amortized Cost | 5,839 | 1,001 |
HTM: Gross unrealized gains | 1 | 0 |
HTM: Gross unrealized losses | 283 | 3 |
HTM: Fair value | 5,557 | 998 |
HTM securities | U.S. Agency Securities | ||
HTM securities: | ||
HTM: Amortized Cost | 11,083 | 4,223 |
HTM: Gross unrealized gains | 1 | 1 |
HTM: Gross unrealized losses | 188 | 34 |
HTM: Fair value | $ 10,896 | $ 4,190 |
Investment Securities (Investme
Investment Securities (Investment Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Investment securities | ||
Investment securities: Fair Value, Less than 12 Months | $ 65,265 | $ 54,185 |
Investment securities: Fair Value, 12 Months or Longer | 1,223 | 6,021 |
Investment securities: Fair Value | 66,488 | 60,206 |
Investment securities: Gross Unrealized Loss, Less than 12 Months | 1,441 | 481 |
Investment securities: Gross Unrealized Loss, 12 Months or Longer | 7 | 109 |
Investment securities: Gross Unrealized Loss | 1,448 | 590 |
AFS Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 49,596 | 49,610 |
AFS: Fair Value, 12 Months or Longer | 1,223 | 6,021 |
AFS: Fair Value, Total | 50,819 | 55,631 |
AFS: Gross Unrealized Losses, Less than 12 Months | 970 | 444 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 7 | 109 |
AFS: Gross Unrealized Losses, Total | 977 | 553 |
AFS Debt Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 49,590 | 49,603 |
AFS: Fair Value, 12 Months or Longer | 1,223 | 6,021 |
AFS: Fair Value, Total | 50,813 | 55,624 |
AFS: Gross Unrealized Losses, Less than 12 Months | 961 | 436 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 7 | 109 |
AFS: Gross Unrealized Losses, Total | 968 | 545 |
AFS Debt Securities | U.S. Government and Agency Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 42,083 | 40,236 |
AFS: Fair Value, 12 Months or Longer | 125 | 2,816 |
AFS: Fair Value, Total | 42,208 | 43,052 |
AFS: Gross Unrealized Losses, Less than 12 Months | 823 | 261 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 38 |
AFS: Gross Unrealized Losses, Total | 823 | 299 |
AFS Debt Securities | U.S. Treasury Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 25,323 | 25,994 |
AFS: Fair Value, 12 Months or Longer | 0 | 2,177 |
AFS: Fair Value, Total | 25,323 | 28,171 |
AFS: Gross Unrealized Losses, Less than 12 Months | 545 | 126 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 17 |
AFS: Gross Unrealized Losses, Total | 545 | 143 |
AFS Debt Securities | U.S. Agency Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 16,760 | 14,242 |
AFS: Fair Value, 12 Months or Longer | 125 | 639 |
AFS: Fair Value, Total | 16,885 | 14,881 |
AFS: Gross Unrealized Losses, Less than 12 Months | 278 | 135 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 21 |
AFS: Gross Unrealized Losses, Total | 278 | 156 |
AFS Debt Securities | Corporate and Other Debt | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 7,507 | 9,367 |
AFS: Fair Value, 12 Months or Longer | 1,098 | 3,205 |
AFS: Fair Value, Total | 8,605 | 12,572 |
AFS: Gross Unrealized Losses, Less than 12 Months | 138 | 175 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 7 | 71 |
AFS: Gross Unrealized Losses, Total | 145 | 246 |
AFS Debt Securities | Commercial Mortgage-backed Securities: Agency | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 1,245 | 1,185 |
AFS: Fair Value, 12 Months or Longer | 0 | 422 |
AFS: Fair Value, Total | 1,245 | 1,607 |
AFS: Gross Unrealized Losses, Less than 12 Months | 44 | 44 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 16 |
AFS: Gross Unrealized Losses, Total | 44 | 60 |
AFS Debt Securities | Commercial Mortgage-backed Securities: Non-Agency | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 763 | 1,479 |
AFS: Fair Value, 12 Months or Longer | 594 | 305 |
AFS: Fair Value, Total | 1,357 | 1,784 |
AFS: Gross Unrealized Losses, Less than 12 Months | 11 | 21 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 5 | 4 |
AFS: Gross Unrealized Losses, Total | 16 | 25 |
AFS Debt Securities | Auto Loan Asset-backed Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 659 | 1,644 |
AFS: Fair Value, 12 Months or Longer | 123 | 881 |
AFS: Fair Value, Total | 782 | 2,525 |
AFS: Gross Unrealized Losses, Less than 12 Months | 1 | 7 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 2 |
AFS: Gross Unrealized Losses, Total | 1 | 9 |
AFS Debt Securities | Corporate Bonds | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 2,050 | 2,149 |
AFS: Fair Value, 12 Months or Longer | 142 | 525 |
AFS: Fair Value, Total | 2,192 | 2,674 |
AFS: Gross Unrealized Losses, Less than 12 Months | 21 | 19 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 1 | 11 |
AFS: Gross Unrealized Losses, Total | 22 | 30 |
AFS Debt Securities | Collateralized Loan Obligations | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 178 | 352 |
AFS: Fair Value, 12 Months or Longer | 239 | 143 |
AFS: Fair Value, Total | 417 | 495 |
AFS: Gross Unrealized Losses, Less than 12 Months | 0 | 5 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 1 | 2 |
AFS: Gross Unrealized Losses, Total | 1 | 7 |
AFS Debt Securities | FFELP Student Loan Asset-backed Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 2,612 | 2,558 |
AFS: Fair Value, 12 Months or Longer | 0 | 929 |
AFS: Fair Value, Total | 2,612 | 3,487 |
AFS: Gross Unrealized Losses, Less than 12 Months | 61 | 79 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 36 |
AFS: Gross Unrealized Losses, Total | 61 | 115 |
AFS Equity Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 6 | 7 |
AFS: Fair Value, 12 Months or Longer | 0 | 0 |
AFS: Fair Value, Total | 6 | 7 |
AFS: Gross Unrealized Losses, Less than 12 Months | 9 | 8 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
AFS: Gross Unrealized Losses, Total | 9 | 8 |
HTM securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 15,669 | 4,575 |
HTM: Fair Value, 12 Months or Longer | 0 | 0 |
HTM: Fair Value, Total | 15,669 | 4,575 |
HTM: Gross Unrealized Losses, Less than 12 Months | 471 | 37 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
HTM: Gross Unrealized Losses, Total | 471 | 37 |
HTM securities | U.S. Treasury Securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 5,057 | 898 |
HTM: Fair Value, 12 Months or Longer | 0 | 0 |
HTM: Fair Value, Total | 5,057 | 898 |
HTM: Gross Unrealized Losses, Less than 12 Months | 283 | 3 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
HTM: Gross Unrealized Losses, Total | 283 | 3 |
HTM securities | U.S. Agency Securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 10,612 | 3,677 |
HTM: Fair Value, 12 Months or Longer | 0 | 0 |
HTM: Fair Value, Total | 10,612 | 3,677 |
HTM: Gross Unrealized Losses, Less than 12 Months | 188 | 34 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
HTM: Gross Unrealized Losses, Total | $ 188 | $ 34 |
Investment Securities (Invest74
Investment Securities (Investment Securities by Contractual Maturity) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Amortized Cost | ||
Investment securities: Amortized cost, total | $ 81,028 | $ 72,493 |
Fair Value | ||
AFS securities: Fair value, Total | 63,170 | 66,759 |
Investment securities: Fair value, total | $ 79,623 | 71,947 |
Average Yield | ||
Investment securities: Average yield, total | 1.60% | |
Available for sale Securitie | ||
Amortized Cost | ||
AFS Securities: Amortized Cost, Total | $ 64,106 | 67,269 |
Fair Value | ||
AFS securities: Fair value, Total | $ 63,170 | 66,759 |
Average Yield | ||
AFS securities: Average yield, total | 1.40% | |
AFS Debt Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, total | $ 64,091 | 67,254 |
Fair Value | ||
AFS debt securities: Fair value, total | $ 63,164 | 66,752 |
Average Yield | ||
AFS securities: Average yield, total | 1.40% | |
AFS Debt Securities | U.S. Government and Agency Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, total | $ 50,719 | 52,658 |
Fair Value | ||
AFS debt securities: Fair value, total | $ 49,911 | 52,393 |
Average Yield | ||
AFS securities: Average yield, total | 1.40% | |
AFS Debt Securities | U.S. Treasury Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 2,162 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 20,280 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 5,929 | |
AFS debt securities: Amortized cost, total | 28,371 | 31,555 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 2,160 | |
AFS debt securities: Fair value, after 1 year through 5 years | 20,089 | |
AFS debt securities: Fair value, after 5 years through 10 years | 5,578 | |
AFS debt securities: Fair value, total | $ 27,827 | 31,417 |
Average Yield | ||
AFS securities: Average yield, due within 1 year | 0.80% | |
AFS securities: Average yield, after 1 year through 5 years | 1.10% | |
AFS securities: Average yield, after 5 years through 10 years | 1.40% | |
AFS Debt Securities | U.S. Agency Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 36 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 3,581 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 1,255 | |
AFS debt securities: Amortized cost, after 10 years | 17,476 | |
AFS debt securities: Amortized cost, total | 22,348 | 21,103 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 36 | |
AFS debt securities: Fair value, after 1 year through 5 years | 3,570 | |
AFS debt securities: Fair value, after 5 years through 10 years | 1,251 | |
AFS debt securities: Fair value, after 10 years | 17,227 | |
AFS debt securities: Fair value, total | $ 22,084 | 20,976 |
Average Yield | ||
AFS securities: Average yield, due within 1 year | 0.70% | |
AFS securities: Average yield, after 1 year through 5 years | 0.70% | |
AFS securities: Average yield, after 5 years through 10 years | 2.00% | |
AFS securities: Average yield, after 10 years | 1.80% | |
AFS Debt Securities | Corporate and Other Debt | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, total | $ 13,372 | 14,596 |
Fair Value | ||
AFS debt securities: Fair value, total | $ 13,253 | 14,359 |
Average Yield | ||
AFS securities: Average yield, total | 1.60% | |
AFS Debt Securities | Commercial Mortgage-backed Securities: Agency | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 116 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 267 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 546 | |
AFS debt securities: Amortized cost, after 10 years | 921 | |
AFS debt securities: Amortized cost, total | 1,850 | 1,906 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 116 | |
AFS debt securities: Fair value, after 1 year through 5 years | 267 | |
AFS debt securities: Fair value, after 5 years through 10 years | 546 | |
AFS debt securities: Fair value, after 10 years | 879 | |
AFS debt securities: Fair value, total | $ 1,808 | 1,847 |
Average Yield | ||
AFS securities: Average yield, due within 1 year | 1.10% | |
AFS securities: Average yield, after 1 year through 5 years | 1.20% | |
AFS securities: Average yield, after 5 years through 10 years | 1.20% | |
AFS securities: Average yield, after 10 years | 1.60% | |
AFS Debt Securities | Commercial Mortgage-backed Securities: Non-Agency | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, after 5 years through 10 years | $ 35 | |
AFS debt securities: Amortized cost, after 10 years | 2,215 | |
AFS debt securities: Amortized cost, total | 2,250 | 2,220 |
Fair Value | ||
AFS debt securities: Fair value, after 5 years through 10 years | 34 | |
AFS debt securities: Fair value, after 10 years | 2,211 | |
AFS debt securities: Fair value, total | $ 2,245 | 2,198 |
Average Yield | ||
AFS securities: Average yield, after 5 years through 10 years | 2.50% | |
AFS securities: Average yield, after 10 years | 2.00% | |
AFS Debt Securities | Auto Loan Asset-backed Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 84 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 1,363 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 62 | |
AFS debt securities: Amortized cost, total | 1,509 | 2,556 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 84 | |
AFS debt securities: Fair value, after 1 year through 5 years | 1,363 | |
AFS debt securities: Fair value, after 5 years through 10 years | 62 | |
AFS debt securities: Fair value, total | $ 1,509 | 2,547 |
Average Yield | ||
AFS securities: Average yield, due within 1 year | 1.30% | |
AFS securities: Average yield, after 1 year through 5 years | 1.40% | |
AFS securities: Average yield, after 5 years through 10 years | 1.60% | |
AFS Debt Securities | Corporate Bonds | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 860 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 2,270 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 706 | |
AFS debt securities: Amortized cost, total | 3,836 | 3,780 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 859 | |
AFS debt securities: Fair value, after 1 year through 5 years | 2,265 | |
AFS debt securities: Fair value, after 5 years through 10 years | 697 | |
AFS debt securities: Fair value, total | $ 3,821 | 3,755 |
Average Yield | ||
AFS securities: Average yield, due within 1 year | 1.30% | |
AFS securities: Average yield, after 1 year through 5 years | 2.00% | |
AFS securities: Average yield, after 5 years through 10 years | 2.40% | |
AFS Debt Securities | Collateralized Loan Obligations | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, after 5 years through 10 years | $ 362 | |
AFS debt securities: Amortized cost, after 10 years | 178 | |
AFS debt securities: Amortized cost, total | 540 | 502 |
Fair Value | ||
AFS debt securities: Fair value, after 5 years through 10 years | 361 | |
AFS debt securities: Fair value, after 10 years | 178 | |
AFS debt securities: Fair value, total | $ 539 | 495 |
Average Yield | ||
AFS securities: Average yield, after 5 years through 10 years | 1.50% | |
AFS securities: Average yield, after 10 years | 2.40% | |
AFS Debt Securities | FFELP Student Loan Asset-backed Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, after 1 year through 5 years | $ 70 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 806 | |
AFS debt securities: Amortized cost, after 10 years | 2,511 | |
AFS debt securities: Amortized cost, total | 3,387 | 3,632 |
Fair Value | ||
AFS debt securities: Fair value, after 1 year through 5 years | 70 | |
AFS debt securities: Fair value, after 5 years through 10 years | 785 | |
AFS debt securities: Fair value, after 10 years | 2,476 | |
AFS debt securities: Fair value, total | $ 3,331 | 3,517 |
Average Yield | ||
AFS securities: Average yield, after 1 year through 5 years | 0.70% | |
AFS securities: Average yield, after 5 years through 10 years | 0.90% | |
AFS securities: Average yield, after 10 years | 1.00% | |
AFS Equity Securities | ||
Amortized Cost | ||
AFS equity securities: Amortized cost | $ 15 | 15 |
Fair Value | ||
AFS equity securities: Fair value | $ 6 | $ 7 |
Average Yield | ||
AFS securities: Average yield, total | 0.00% | |
HTM securities | ||
Amortized Cost | ||
HTM securities: Amortized cost, total | $ 16,922 | |
Fair Value | ||
HTM securities: Fair value, total | $ 16,453 | |
Average Yield | ||
HTM securities: Average yield, total | 2.10% | |
HTM securities | U.S. Treasury Securities | ||
Amortized Cost | ||
HTM securities: Amortized cost, due within 1 year | $ 500 | |
HTM securities: Amortized cost, after 1 year through 5 years | 2,013 | |
HTM securities: Amortized cost, after 5 year through 10 years | 2,600 | |
HTM securities: Amortized cost, after 10 years | 726 | |
HTM securities: Amortized cost, total | 5,839 | |
Fair Value | ||
HTM securities: Fair value, due within 1 year | 500 | |
HTM securities: Fair value, after 1 year through 5 years | 2,003 | |
HTM securities: Fair value, after 5 years through 10 years | 2,433 | |
HTM securities: Fair value, after 10 years | 621 | |
HTM securities: Fair value, total | $ 5,557 | |
Average Yield | ||
HTM securities: Average yield, due within 1 year | 0.70% | |
HTM securities: Average yield, after 1 years through 5 years | 1.30% | |
HTM securities: Average yield, after 5 years through 10 years | 1.60% | |
HTM securities: Average yield, after 10 year | 2.30% | |
HTM securities | U.S. Agency Securities | ||
Amortized Cost | ||
HTM securities: Amortized cost, after 10 years | $ 11,083 | |
HTM securities: Amortized cost, total | 11,083 | |
Fair Value | ||
HTM securities: Fair value, after 10 years | 10,896 | |
HTM securities: Fair value, total | $ 10,896 | |
Average Yield | ||
HTM securities: Average yield, after 10 year | 2.40% |
Investment Securities (Gross Re
Investment Securities (Gross Realized Gains and Losses on Sales of AFS Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Available-for-sale Securities [Abstract] | |||
Gross realized gains | $ 133 | $ 116 | $ 41 |
Gross realized (losses) | (21) | (32) | (1) |
Total | $ 112 | $ 84 | $ 40 |
Collateralized Transactions (Na
Collateralized Transactions (Narrative) (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Collateralized Agreements | ||
Trading assets that have been loaned or pledged to counterparties, where those counterparties do not have the right to sell or repledge the collateral | $ 41.4 | $ 35 |
Fair value of financial instruments received as collateral where the Firm is permitted to sell or repledge the securities | 561.2 | 522.6 |
Fair value of financial instruments received as collateral where the Firm has sold or repledged | 430.9 | 398.1 |
Customer margin loans outstanding | $ 24.4 | $ 25.3 |
Trading Assets to Total Assets Ratio | ||
Concentration Risk | ||
Concentration Risk, Percentage | 8.00% | 7.00% |
Collateral Held to Total Assets Ratio | ||
Concentration Risk | ||
Concentration Risk, Percentage | 18.00% | 15.00% |
Collateralized Transactions (Of
Collateralized Transactions (Offsetting of Certain Collateralized Transactions) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Securities Purchased under Agreements to Resell | ||
Gross amount | $ 182,888 | $ 135,714 |
Amounts offset | (80,933) | (48,057) |
Net amount presented | 101,955 | 87,657 |
Amounts not offset | (93,365) | (84,752) |
Net amounts | 8,590 | 2,905 |
Securities Borrowed | ||
Gross amount | 129,934 | 147,445 |
Amounts offset | (4,698) | (5,029) |
Net amount presented | 125,236 | 142,416 |
Amounts not offset | (118,974) | (134,250) |
Net amounts | 6,262 | 8,166 |
Securities Sold under Agreements to Repurchase | ||
Gross amount | 135,561 | 84,749 |
Amounts offset | (80,933) | (48,057) |
Net amount presented | 54,628 | 36,692 |
Amounts not offset | (47,933) | (31,604) |
Net amounts | 6,695 | 5,088 |
Securities Loaned | ||
Gross amount | 20,542 | 24,387 |
Amounts offset | (4,698) | (5,029) |
Net amount presented | 15,844 | 19,358 |
Amounts not offset | (15,670) | (18,881) |
Net amounts | 174 | 477 |
Securities purchased under agreements to resell, which are either not subject to master netting agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable | 7,800 | 2,600 |
Securities borrowed, which are either not subject to master netting agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable | 2,600 | 3,000 |
Securities sold under agreements to repurchase, which are either not subject to master netting agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable | 6,500 | $ 4,900 |
Securities loaned, which are either not subject to master netting agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable | $ 200 |
Collateralized Transactions (Gr
Collateralized Transactions (Gross Secured Financing Balances) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | $ 135,561 | $ 84,749 |
Securities loaned | 20,542 | 24,387 |
Gross amount of secured financing included in the offseting disclosure | 156,103 | 109,136 |
Trading liabilities: Obligation to return securities received as collateral | 20,262 | 19,316 |
Total | 176,365 | 128,452 |
U.S. Government and Agency Securities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 56,372 | 36,609 |
Securities loaned | 1 | 0 |
State and Municipal Securities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 1,363 | 173 |
Other Sovereign Government Obligations | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 42,790 | 24,820 |
Securities loaned | 4,762 | 7,336 |
Asset-backed Securities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 1,918 | 441 |
Corporate and Other Debt | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 9,086 | 4,020 |
Securities loaned | 73 | 71 |
Trading liabilities: Obligation to return securities received as collateral | 0 | 3 |
Corporate Equities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 23,152 | 18,473 |
Securities loaned | 15,693 | 16,972 |
Trading liabilities: Obligation to return securities received as collateral | 20,247 | 19,313 |
Other | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 880 | 213 |
Securities loaned | 13 | 8 |
Trading liabilities: Obligation to return securities received as collateral | 15 | 0 |
Overnight and Open | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 41,549 | 20,410 |
Securities loaned | 9,487 | 12,247 |
Gross amount of secured financing included in the offseting disclosure | 51,036 | 32,657 |
Trading liabilities: Obligation to return securities received as collateral | 20,262 | 19,316 |
Total | 71,298 | 51,973 |
Less than 30 days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 36,703 | 25,245 |
Securities loaned | 851 | 478 |
Gross amount of secured financing included in the offseting disclosure | 37,554 | 25,723 |
Trading liabilities: Obligation to return securities received as collateral | 0 | 0 |
Total | 37,554 | 25,723 |
30-90 days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 24,648 | 13,221 |
Securities loaned | 2,863 | 2,156 |
Gross amount of secured financing included in the offseting disclosure | 27,511 | 15,377 |
Trading liabilities: Obligation to return securities received as collateral | 0 | 0 |
Total | 27,511 | 15,377 |
Over 90 days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 32,661 | 25,873 |
Securities loaned | 7,341 | 9,506 |
Gross amount of secured financing included in the offseting disclosure | 40,002 | 35,379 |
Trading liabilities: Obligation to return securities received as collateral | 0 | 0 |
Total | $ 40,002 | $ 35,379 |
Collateralized Transactions (Ca
Collateralized Transactions (Cash and Securities Deposited with Clearing Organizations or Segregated) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Collateralized Transactions | ||
Securities | $ 23,756 | $ 14,390 |
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 33,979 | 31,469 |
Total | $ 57,735 | $ 45,859 |
Loans and Allowance for Credi80
Loans and Allowance for Credit Losses (Loans Held for Investment and Held for Sale) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loans Held for Investments | |||
Loans held for investments, gross | $ 81,978 | $ 72,784 | |
Allowance for loan losses | (274) | (225) | $ (149) |
Loans held for investment, net | 81,704 | 72,559 | |
Loans Held for Sale | |||
Loans held for sale, gross | 12,544 | 13,200 | |
Loans held for sale, net | 12,544 | 13,200 | |
Total Loans | |||
Total loans, gross | 94,522 | 85,984 | |
Allowance for loan losses | (274) | (225) | |
Total loans, net | 94,248 | 85,759 | |
Loans at fixed interest rates | 11,895 | 8,471 | |
Loans at floating or adjustable interest rates | 82,353 | 77,288 | |
Geographic Distribution, Foreign [Member] | |||
Total Loans | |||
Total loans, net | 9,388 | 9,789 | |
Pass | |||
Loans Held for Investments | |||
Loans held for investments, gross | 79,901 | 71,235 | |
Special Mention | |||
Loans Held for Investments | |||
Loans held for investments, gross | 519 | 300 | |
Substandard | |||
Loans Held for Investments | |||
Loans held for investments, gross | 1,489 | 1,237 | |
Doubtful | |||
Loans Held for Investments | |||
Loans held for investments, gross | 69 | 12 | |
Loss | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Corporate | |||
Loans Held for Investments | |||
Loans held for investments, gross | 25,025 | 23,554 | |
Allowance for loan losses | (195) | (166) | (118) |
Loans Held for Sale | |||
Loans held for sale, gross | 10,710 | 11,924 | |
Total Loans | |||
Total loans, gross | 35,735 | 35,478 | |
Corporate | Pass | |||
Loans Held for Investments | |||
Loans held for investments, gross | 23,409 | 22,040 | |
Corporate | Special Mention | |||
Loans Held for Investments | |||
Loans held for investments, gross | 288 | 300 | |
Corporate | Substandard | |||
Loans Held for Investments | |||
Loans held for investments, gross | 1,259 | 1,202 | |
Corporate | Doubtful | |||
Loans Held for Investments | |||
Loans held for investments, gross | 69 | 12 | |
Corporate | Loss | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Consumer | |||
Loans Held for Investments | |||
Loans held for investments, gross | 24,866 | 21,528 | |
Allowance for loan losses | (4) | (5) | (2) |
Loans Held for Sale | |||
Loans held for sale, gross | 0 | 0 | |
Total Loans | |||
Total loans, gross | 24,866 | 21,528 | |
Consumer | Pass | |||
Loans Held for Investments | |||
Loans held for investments, gross | 24,853 | 21,528 | |
Consumer | Special Mention | |||
Loans Held for Investments | |||
Loans held for investments, gross | 13 | 0 | |
Consumer | Substandard | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Consumer | Doubtful | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Consumer | Loss | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Residential Real Estate | |||
Loans Held for Investments | |||
Loans held for investments, gross | 24,385 | 20,863 | |
Allowance for loan losses | (20) | (17) | (8) |
Loans Held for Sale | |||
Loans held for sale, gross | 61 | 104 | |
Total Loans | |||
Total loans, gross | 24,446 | 20,967 | |
Residential Real Estate | Pass | |||
Loans Held for Investments | |||
Loans held for investments, gross | 24,345 | 20,828 | |
Residential Real Estate | Special Mention | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Residential Real Estate | Substandard | |||
Loans Held for Investments | |||
Loans held for investments, gross | 40 | 35 | |
Residential Real Estate | Doubtful | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Residential Real Estate | Loss | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Wholesale Real Estate | |||
Loans Held for Investments | |||
Loans held for investments, gross | 7,702 | 6,839 | |
Allowance for loan losses | (55) | (37) | $ (21) |
Loans Held for Sale | |||
Loans held for sale, gross | 1,773 | 1,172 | |
Total Loans | |||
Total loans, gross | 9,475 | 8,011 | |
Wholesale Real Estate | Pass | |||
Loans Held for Investments | |||
Loans held for investments, gross | 7,294 | 6,839 | |
Wholesale Real Estate | Special Mention | |||
Loans Held for Investments | |||
Loans held for investments, gross | 218 | 0 | |
Wholesale Real Estate | Substandard | |||
Loans Held for Investments | |||
Loans held for investments, gross | 190 | 0 | |
Wholesale Real Estate | Doubtful | |||
Loans Held for Investments | |||
Loans held for investments, gross | 0 | 0 | |
Wholesale Real Estate | Loss | |||
Loans Held for Investments | |||
Loans held for investments, gross | $ 0 | $ 0 |
Loans and Allowance for Credi81
Loans and Allowance for Credit Losses (Impaired Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Impaired Loans | |||
Impaired loans with allowance | $ 104 | $ 39 | |
Impaired loans without allowance | 241 | 106 | |
Impaired loans unpaid principal balance | 354 | 149 | |
Impaired loans | 345 | 145 | |
Past due 90 days loans and on nonaccrual | 0 | 22 | |
Allowance | 274 | 225 | $ 149 |
Troubled Debt Restructuring | |||
Allowance for TDR | 5.1 | ||
Americas | |||
Impaired Loans | |||
Impaired loans | 320 | 108 | |
Allowance | 245 | 183 | |
EMEA | |||
Impaired Loans | |||
Impaired loans | 9 | 12 | |
Allowance | 28 | 34 | |
Asia-Pacific | |||
Impaired Loans | |||
Impaired loans | 16 | 25 | |
Allowance | 1 | 8 | |
Corporate | |||
Impaired Loans | |||
Impaired loans with allowance | 104 | 39 | |
Impaired loans without allowance | 206 | 89 | |
Impaired loans unpaid principal balance | 316 | 130 | |
Past due 90 days loans and on nonaccrual | 0 | 1 | |
Allowance | 195 | 166 | 118 |
Consumer | |||
Impaired Loans | |||
Allowance | 4 | 5 | 2 |
Residential Real Estate | |||
Impaired Loans | |||
Impaired loans with allowance | 0 | 0 | |
Impaired loans without allowance | 35 | 17 | |
Impaired loans unpaid principal balance | 38 | 19 | |
Past due 90 days loans and on nonaccrual | 0 | 21 | |
Allowance | 20 | 17 | 8 |
Wholesale Real Estate | |||
Impaired Loans | |||
Allowance | 55 | 37 | $ 21 |
Loans | |||
Troubled Debt Restructuring | |||
Troubled debt restructurings | 67.4 | 44 | |
Lending Commitments | |||
Troubled Debt Restructuring | |||
Troubled debt restructurings | $ 13.9 | $ 34.8 |
Loans and Allowance for Credi82
Loans and Allowance for Credit Losses (Loans and Lending Commitments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for loan losses rollforward | ||
Beginning balance | $ 225 | $ 149 |
Gross charge-offs | (17) | (1) |
Gross recoveries | 3 | 1 |
Net recoveries/(charge-offs) | (14) | 0 |
Provision for (releases of) loan losses | 131 | 87 |
Other | (68) | (11) |
Ending balance | 274 | 225 |
Loans, additional information | ||
Allowance, inherent | 212 | 215 |
Allowance, specific | 62 | 10 |
Loans, inherent | 81,633 | 72,639 |
Loans, specific | 345 | 145 |
Total loans | 81,978 | 72,784 |
Allowance for lending commitments rollforward | ||
Beginning balance | 185 | 149 |
Provision for lending commitments | 13 | 36 |
Other | (8) | |
Ending balance | 190 | 185 |
Lending commitments, additional information | ||
Allowance, inherent | 190 | 178 |
Allowance, specific | 0 | 7 |
Lending commitments, inherent | 69,958 | 69,422 |
Lending commitments, specific | 89 | 126 |
Total lending commitments | 70,047 | 69,548 |
Transfer to loans held for sale | 492 | |
Corporate | ||
Allowance for loan losses rollforward | ||
Beginning balance | 166 | 118 |
Gross charge-offs | (16) | 0 |
Gross recoveries | 3 | 1 |
Net recoveries/(charge-offs) | (13) | 1 |
Provision for (releases of) loan losses | 110 | 58 |
Other | (68) | (11) |
Ending balance | 195 | 166 |
Loans, additional information | ||
Allowance, inherent | 133 | 156 |
Allowance, specific | 62 | 10 |
Loans, inherent | 24,715 | 23,426 |
Loans, specific | 310 | 128 |
Total loans | 25,025 | 23,554 |
Allowance for lending commitments rollforward | ||
Beginning balance | 180 | 147 |
Provision for lending commitments | 13 | 33 |
Other | (8) | |
Ending balance | 185 | 180 |
Lending commitments, additional information | ||
Allowance, inherent | 185 | 173 |
Allowance, specific | 0 | 7 |
Lending commitments, inherent | 63,078 | 63,873 |
Lending commitments, specific | 89 | 126 |
Total lending commitments | 63,167 | 63,999 |
Consumer | ||
Allowance for loan losses rollforward | ||
Beginning balance | 5 | 2 |
Gross charge-offs | 0 | 0 |
Gross recoveries | 0 | 0 |
Net recoveries/(charge-offs) | 0 | 0 |
Provision for (releases of) loan losses | (1) | 3 |
Other | 0 | 0 |
Ending balance | 4 | 5 |
Loans, additional information | ||
Allowance, inherent | 4 | 5 |
Allowance, specific | 0 | 0 |
Loans, inherent | 24,866 | 21,528 |
Loans, specific | 0 | 0 |
Total loans | 24,866 | 21,528 |
Allowance for lending commitments rollforward | ||
Beginning balance | 1 | 0 |
Provision for lending commitments | 0 | 1 |
Other | 0 | |
Ending balance | 1 | 1 |
Lending commitments, additional information | ||
Allowance, inherent | 1 | 1 |
Allowance, specific | 0 | 0 |
Lending commitments, inherent | 6,031 | 4,856 |
Lending commitments, specific | 0 | 0 |
Total lending commitments | 6,031 | 4,856 |
Residential Real Estate | ||
Allowance for loan losses rollforward | ||
Beginning balance | 17 | 8 |
Gross charge-offs | (1) | (1) |
Gross recoveries | 0 | 0 |
Net recoveries/(charge-offs) | (1) | (1) |
Provision for (releases of) loan losses | 4 | 10 |
Other | 0 | 0 |
Ending balance | 20 | 17 |
Loans, additional information | ||
Allowance, inherent | 20 | 17 |
Allowance, specific | 0 | 0 |
Loans, inherent | 24,350 | 20,846 |
Loans, specific | 35 | 17 |
Total loans | 24,385 | 20,863 |
Allowance for lending commitments rollforward | ||
Beginning balance | 0 | 0 |
Provision for lending commitments | 0 | 0 |
Other | 0 | |
Ending balance | 0 | 0 |
Lending commitments, additional information | ||
Allowance, inherent | 0 | 0 |
Allowance, specific | 0 | 0 |
Lending commitments, inherent | 322 | 312 |
Lending commitments, specific | 0 | 0 |
Total lending commitments | 322 | 312 |
Wholesale Real Estate | ||
Allowance for loan losses rollforward | ||
Beginning balance | 37 | 21 |
Gross charge-offs | 0 | 0 |
Gross recoveries | 0 | 0 |
Net recoveries/(charge-offs) | 0 | 0 |
Provision for (releases of) loan losses | 18 | 16 |
Other | 0 | 0 |
Ending balance | 55 | 37 |
Loans, additional information | ||
Allowance, inherent | 55 | 37 |
Allowance, specific | 0 | 0 |
Loans, inherent | 7,702 | 6,839 |
Loans, specific | 0 | 0 |
Total loans | 7,702 | 6,839 |
Allowance for lending commitments rollforward | ||
Beginning balance | 4 | 2 |
Provision for lending commitments | 0 | 2 |
Other | 0 | |
Ending balance | 4 | 4 |
Lending commitments, additional information | ||
Allowance, inherent | 4 | 4 |
Allowance, specific | 0 | 0 |
Lending commitments, inherent | 527 | 381 |
Lending commitments, specific | 0 | 0 |
Total lending commitments | $ 527 | $ 381 |
Loans and Allowance for Credi83
Loans and Allowance for Credit Losses (Employee Loans) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Loans | ||
Employee loans outstanding | $ 4,715 | $ 4,923 |
Allowance for employee loans | $ 89 | $ 108 |
Employee Retainment and Recruitment Program | Minimum | ||
Employee Loans | ||
Employee loan repayment terms | 1 year | |
Employee Retainment and Recruitment Program | Maximum | ||
Employee Loans | ||
Employee loan repayment terms | 12 years |
Equity Method Investments (Over
Equity Method Investments (Overview) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures | |||
Equity method investment | $ 2,837 | $ 3,144 | |
Income (loss) from equity method investments | $ (79) | $ 114 | $ 156 |
Equity Method Investments (Inve
Equity Method Investments (Investees) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investments | |||
Income from equity method investments | $ (79) | $ 114 | $ 156 |
Equity method investment | $ 2,837 | 3,144 | |
MUMSS | |||
Equity Method Investments | |||
Voting interest | 40.00% | ||
Income from equity method investments | $ 93 | 220 | 224 |
Equity method investment | 1,581 | 1,457 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Total assets | 120,991 | 135,398 | |
Total liabilities | 117,798 | 132,492 | |
Noncontrolling interests | 29 | 29 | |
Net revenues | 2,527 | 2,961 | 2,961 |
Income from continuing operations before income taxes | 369 | 845 | 908 |
Net income | 246 | 589 | 595 |
Net income applicable to equity method investee | $ 233 | $ 565 | $ 582 |
MUFG | MUMSS | |||
Equity Method Investments | |||
Voting interest | 60.00% |
Goodwill and Intangible Asset86
Goodwill and Intangible Assets (Goodwill Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill Roll Forward | ||
Beginning Balance | $ 6,584 | $ 6,588 |
Foreign currency and other | (7) | (15) |
Acquired | 11 | |
Ending Balance | 6,577 | 6,584 |
Goodwill, Impaired, Accumulated Impairment Loss | ||
Goodwill, accumulated impairments | 700 | |
Goodwill before accumulated impairments | 7,277 | 7,284 |
Institutional Securities | ||
Goodwill Roll Forward | ||
Beginning Balance | 282 | 286 |
Foreign currency and other | (7) | (15) |
Acquired | 11 | |
Ending Balance | 275 | 282 |
Goodwill, Impaired, Accumulated Impairment Loss | ||
Goodwill, accumulated impairments | 673 | |
Wealth Management | ||
Goodwill Roll Forward | ||
Beginning Balance | 5,533 | 5,533 |
Foreign currency and other | 0 | 0 |
Acquired | 0 | |
Ending Balance | 5,533 | 5,533 |
Investment Management | ||
Goodwill Roll Forward | ||
Beginning Balance | 769 | 769 |
Foreign currency and other | 0 | 0 |
Acquired | 0 | |
Ending Balance | 769 | $ 769 |
Goodwill, Impaired, Accumulated Impairment Loss | ||
Goodwill, accumulated impairments | $ 27 |
Goodwill and Intangible Asset87
Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets | |||
Amortizable intangibles | $ 2,718 | $ 2,979 | $ 3,153 |
Mortgage servicing rights | 3 | 5 | |
Intangible assets | 2,721 | 2,984 | |
Net increase in Intangible assets | 159 | ||
Gain in the acquisition of intangible assets | 78 | ||
Institutional Securities | |||
Intangible Assets | |||
Amortizable intangibles | 346 | 327 | 221 |
Mortgage servicing rights | 0 | 0 | |
Intangible assets | 346 | 327 | |
Wealth Management | |||
Intangible Assets | |||
Amortizable intangibles | 2,361 | 2,632 | 2,905 |
Mortgage servicing rights | 3 | 5 | |
Intangible assets | 2,364 | 2,637 | |
Investment Management | |||
Intangible Assets | |||
Amortizable intangibles | 11 | 20 | $ 27 |
Mortgage servicing rights | 0 | 0 | |
Intangible assets | $ 11 | $ 20 |
Goodwill and Intangible Asset88
Goodwill and Intangible Assets (Amortizable Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Amortizable Intangible Assets | ||
Gross Carrying Amount | $ 5,139 | $ 5,109 |
Accumulated Amortization | 2,421 | 2,130 |
Estimated Amortization Expense | ||
Year 1 | 298 | |
Year 2 | 298 | |
Year 3 | 298 | |
Year 4 | 298 | |
Year 5 | 298 | |
Trademarks | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 1 | 1 |
Accumulated Amortization | 0 | 0 |
Tradename | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 283 | 280 |
Accumulated Amortization | 40 | 31 |
Customer Relationships | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 4,059 | 4,059 |
Accumulated Amortization | 1,939 | 1,686 |
Management Contracts | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 467 | 478 |
Accumulated Amortization | 275 | 250 |
Other | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 329 | 291 |
Accumulated Amortization | $ 167 | $ 163 |
Goodwill and Intangible Asset89
Goodwill and Intangible Assets (Amortizable Net Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Amortizable Intangible Assets | ||
Amortizable net intangible assets, beginning balance | $ 2,979 | $ 3,153 |
Acquired | 43 | 160 |
Disposals | (11) | |
Amortization expense | (291) | (306) |
Impairment losses | (2) | |
Other | (28) | |
Amortizable net intangible assets, ending balance | 2,718 | 2,979 |
Institutional Securities | ||
Amortizable Intangible Assets | ||
Amortizable net intangible assets, beginning balance | 327 | 221 |
Acquired | 43 | 160 |
Disposals | (11) | |
Amortization expense | (11) | (26) |
Impairment losses | (2) | |
Other | (28) | |
Amortizable net intangible assets, ending balance | 346 | 327 |
Wealth Management | ||
Amortizable Intangible Assets | ||
Amortizable net intangible assets, beginning balance | 2,632 | 2,905 |
Acquired | 0 | 0 |
Disposals | 0 | |
Amortization expense | (271) | (273) |
Impairment losses | 0 | |
Other | 0 | |
Amortizable net intangible assets, ending balance | 2,361 | 2,632 |
Investment Management | ||
Amortizable Intangible Assets | ||
Amortizable net intangible assets, beginning balance | 20 | 27 |
Acquired | 0 | 0 |
Disposals | 0 | |
Amortization expense | (9) | (7) |
Impairment losses | 0 | |
Other | 0 | |
Amortizable net intangible assets, ending balance | $ 11 | $ 20 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Savings and demand deposits | $ 154,559 | $ 153,346 |
Time deposits | 1,304 | 2,688 |
Total | 155,863 | 156,034 |
Deposits subject to FDIC | 128,000 | 113,000 |
Time deposits that exceed the FDIC insurance limit | 46 | $ 14 |
Interest-bearing savings deposits payable upon demand | 154,529 | |
Time Deposits Maturities | ||
Interest-bearing time deposits maturing in 2017 | 1,204 | |
Interest-bearing time deposits maturing in 2018 | $ 43 |
Borrowings and Other Secured 91
Borrowings and Other Secured Financings (Other Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Long-term Borrowings | ||
Notes issued, principal amount | $ 43,600 | $ 34,200 |
Long-term borrowings matured or retired | 30,400 | 27,300 |
Debt containing provisions that effectively allow the holders to put the notes | 3,156 | 2,902 |
Notes subject to the arrangements, which entitle certain purchasers to cause the repurchase of the notes | $ 1,117 | $ 650 |
Weighted average maturity of long-term borrowings | 5 years 11 months | 6 years 1 month |
Trust Preferred Securities | ||
Preferred securities redeemed | $ 2,800 | |
Subordinated Debt | ||
Long-term Borrowings | ||
Weighted average coupon | 4.50% | 4.50% |
Borrowings and Other Secured 92
Borrowings and Other Secured Financings (Short-term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Borrowings | ||
Short-term borrowings | $ 941 | $ 2,173 |
Borrowings and Other Secured 93
Borrowings and Other Secured Financings (Maturities and Terms of Long-term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Maturities and Terms | |||
Due in 2016 | $ 0 | $ 22,396 | |
Due in 2017 | 26,127 | 22,266 | |
Due in 2018 | 19,292 | 17,937 | |
Due in 2019 | 22,397 | 18,568 | |
Due in 2020 | 16,736 | 17,005 | |
Due in 2021 | 17,179 | 9,142 | |
Thereafter | 63,044 | 46,454 | |
Total | 164,775 | $ 153,768 | |
Increase (decrease) to carrying amount of long-term borrowings for which fair value option was elected | (700) | ||
Fair Value Hedges | |||
Maturities and Terms | |||
Increase (decrease) to carrying amount of long-term borrowings for which fair value option was elected | 1,100 | ||
Due in 2017 | 200 | ||
Due in 2018 | 200 | ||
Due in 2019 | 300 | ||
Due in 2020 | 300 | ||
Due in 2021 | 200 | ||
Thereafter | $ (100) | ||
Long-term Borrowings | |||
Maturities and Terms | |||
Weighted average coupon | 3.70% | 4.00% | 4.20% |
Secured Financings with Original Maturities Greater than One Year | |||
Maturities and Terms | |||
Due in 2016 | $ 0 | $ 2,333 | |
Due in 2017 | 3,377 | 2,122 | |
Due in 2018 | 2,738 | 1,553 | |
Due in 2019 | 2,813 | 1,148 | |
Due in 2020 | 270 | 142 | |
Due in 2021 | 0 | 0 | |
Thereafter | 206 | 331 | |
Total | $ 9,404 | $ 7,629 | |
Weighted average coupon | 1.00% | 1.20% | |
Secured Financings with Original Maturities Greater than One Year | Fixed Rate | |||
Maturities and Terms | |||
Due in 2016 | $ 0 | ||
Due in 2017 | 86 | ||
Due in 2018 | 0 | ||
Due in 2019 | 1 | ||
Due in 2020 | 58 | ||
Due in 2021 | 0 | ||
Thereafter | 94 | ||
Total | $ 239 | ||
Weighted average coupon | 2.50% | ||
Secured Financings with Original Maturities Greater than One Year | Variable Rate | |||
Maturities and Terms | |||
Due in 2016 | $ 0 | ||
Due in 2017 | 3,291 | ||
Due in 2018 | 2,738 | ||
Due in 2019 | 2,812 | ||
Due in 2020 | 212 | ||
Due in 2021 | 0 | ||
Thereafter | 112 | ||
Total | $ 9,165 | ||
Weighted average coupon | 1.00% | ||
Failed Sales | |||
Maturities and Terms | |||
Due in 2016 | $ 0 | $ 69 | |
Due in 2017 | 112 | 168 | |
Due in 2018 | 17 | 1 | |
Due in 2019 | 53 | 54 | |
Due in 2020 | 55 | 104 | |
Due in 2021 | 28 | 0 | |
Thereafter | 20 | 4 | |
Total | 285 | 400 | |
Parent Company [Member] | |||
Maturities and Terms | |||
Total | 150,725 | $ 144,091 | |
Parent Company [Member] | Fixed Rate | |||
Maturities and Terms | |||
Due in 2016 | 0 | ||
Due in 2017 | 14,120 | ||
Due in 2018 | 12,942 | ||
Due in 2019 | 13,049 | ||
Due in 2020 | 11,128 | ||
Due in 2021 | 13,614 | ||
Thereafter | 43,076 | ||
Total | $ 107,929 | ||
Weighted average coupon | 4.10% | ||
Parent Company [Member] | Variable Rate | |||
Maturities and Terms | |||
Due in 2016 | $ 0 | ||
Due in 2017 | 7,369 | ||
Due in 2018 | 4,698 | ||
Due in 2019 | 8,340 | ||
Due in 2020 | 4,570 | ||
Due in 2021 | 2,044 | ||
Thereafter | 15,385 | ||
Total | $ 42,406 | ||
Weighted average coupon | 1.40% | ||
Subsidiaries | Fixed Rate | |||
Maturities and Terms | |||
Due in 2016 | $ 0 | ||
Due in 2017 | 16 | ||
Due in 2018 | 13 | ||
Due in 2019 | 38 | ||
Due in 2020 | 13 | ||
Due in 2021 | 17 | ||
Thereafter | 244 | ||
Total | $ 341 | ||
Weighted average coupon | 6.00% | ||
Subsidiaries | Variable Rate | |||
Maturities and Terms | |||
Due in 2016 | $ 0 | ||
Due in 2017 | 4,622 | ||
Due in 2018 | 1,639 | ||
Due in 2019 | 970 | ||
Due in 2020 | 1,025 | ||
Due in 2021 | 1,504 | ||
Thereafter | 4,339 | ||
Total | $ 14,099 |
Borrowings and Other Secured 94
Borrowings and Other Secured Financings (Long-term Borrowings by Type) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Long-term Borrowings by Type | ||
Senior debt | $ 154,472 | $ 140,494 |
Subordinated debt | 10,303 | 10,404 |
Junior subordinated debentures | 0 | 2,870 |
Total | $ 164,775 | $ 153,768 |
Borrowings and Other Secured 95
Borrowings and Other Secured Financings (Rates for Long-Term Borrowings at Period End) (Details) - Long-term Borrowings | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Borrowings | |||
Weighted average coupon | 3.70% | 4.00% | 4.20% |
Effective average after swaps | 2.50% | 2.10% | 2.30% |
Borrowings and Other Secured 96
Borrowings and Other Secured Financings (Other Secured Financings by Type) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Long-term Borrowings | ||
Secured financings with original maturities greater than one year | $ 9,404 | $ 7,629 |
Secured financings with original maturities one year or less | 1,429 | 1,435 |
Failed sales | 285 | 400 |
Total other secured financings | $ 11,118 | $ 9,464 |
Commitments, Guarantees and C97
Commitments, Guarantees and Contingencies (Commitments) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Commitment, Fiscal Year Maturity | |
Less than 1 | $ 94,986 |
1-3 years | 24,657 |
3-5 years | 47,871 |
Over 5 years | 4,998 |
Total | 172,512 |
Letters of Credit and Other Financial Guarantees | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 83 |
1-3 years | 0 |
3-5 years | 1 |
Over 5 years | 39 |
Total | 123 |
Investment Activities | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 517 |
1-3 years | 132 |
3-5 years | 13 |
Over 5 years | 246 |
Total | 908 |
Lending Commitments | Corporate Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 15,156 |
1-3 years | 24,144 |
3-5 years | 47,725 |
Over 5 years | 4,421 |
Total | 91,446 |
Commitments participated to third parties | 5,600 |
Lending Commitments | Consumer Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 6,024 |
1-3 years | 3 |
3-5 years | 0 |
Over 5 years | 4 |
Total | 6,031 |
Lending Commitments | Residential Real Estate Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 88 |
1-3 years | 10 |
3-5 years | 100 |
Over 5 years | 220 |
Total | 418 |
Lending Commitments | Wholesale Real Estate Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 79 |
1-3 years | 368 |
3-5 years | 32 |
Over 5 years | 68 |
Total | 547 |
Forward-starting Securities Purchased Under Agreements to Resell and Securities Borrowed | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 71,194 |
1-3 years | 0 |
3-5 years | 0 |
Over 5 years | 0 |
Total | 71,194 |
Commitments due in the next three business days | 68,800 |
Underwriting Commitments | |
Commitment, Fiscal Year Maturity | |
Less than 1 | 1,845 |
1-3 years | 0 |
3-5 years | 0 |
Over 5 years | 0 |
Total | $ 1,845 |
Commitments, Guarantees and C98
Commitments, Guarantees and Contingencies (Future Minimum Rental Commitments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Premises Leases: Future Minimum Rental Commitments | |||
Total of minimum rental income to be received in the future under non-cancelable operating subleases | $ 22 | ||
Total rent expense | 689 | $ 705 | $ 715 |
Premises and Equipment | |||
Operating Premises Leases: Future Minimum Rental Commitments | |||
2,017 | 649 | ||
2,018 | 627 | ||
2,019 | 549 | ||
2,020 | 505 | ||
2,021 | 444 | ||
Thereafter | 2,958 | ||
Total | $ 5,732 |
Commitments, Guarantees and C99
Commitments, Guarantees and Contingencies (Obligations under Guarantee Arrangements) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Credit Derivatives | |
Guarantees | |
Maximum potential payout/notional | $ 429,730 |
Carrying amount (asset)/liability | (1,049) |
Collateral/recourse | 0 |
Credit Derivatives | Less than 1 Year | |
Guarantees | |
Maximum potential payout/notional | 166,685 |
Credit Derivatives | 1 - 3 Years | |
Guarantees | |
Maximum potential payout/notional | 140,987 |
Credit Derivatives | 3 - 5 Years | |
Guarantees | |
Maximum potential payout/notional | 91,784 |
Credit Derivatives | Over 5 Years | |
Guarantees | |
Maximum potential payout/notional | 30,274 |
Other Credit Contracts | |
Guarantees | |
Maximum potential payout/notional | 270 |
Carrying amount (asset)/liability | 0 |
Collateral/recourse | 0 |
Other Credit Contracts | Less than 1 Year | |
Guarantees | |
Maximum potential payout/notional | 49 |
Other Credit Contracts | 1 - 3 Years | |
Guarantees | |
Maximum potential payout/notional | 6 |
Other Credit Contracts | 3 - 5 Years | |
Guarantees | |
Maximum potential payout/notional | 0 |
Other Credit Contracts | Over 5 Years | |
Guarantees | |
Maximum potential payout/notional | 215 |
Non-credit Derivatives | |
Guarantees | |
Maximum potential payout/notional | 3,112,173 |
Carrying amount (asset)/liability | 55,476 |
Collateral/recourse | 0 |
Non-credit Derivatives | Less than 1 Year | |
Guarantees | |
Maximum potential payout/notional | 1,466,131 |
Non-credit Derivatives | 1 - 3 Years | |
Guarantees | |
Maximum potential payout/notional | 779,057 |
Non-credit Derivatives | 3 - 5 Years | |
Guarantees | |
Maximum potential payout/notional | 325,616 |
Non-credit Derivatives | Over 5 Years | |
Guarantees | |
Maximum potential payout/notional | 541,369 |
Standby Letters of Credit and Other Financial Guarantees Issued | |
Guarantees | |
Maximum potential payout/notional | 8,888 |
Carrying amount (asset)/liability | (164) |
Collateral/recourse | 7,009 |
Standby letters of credit | 900 |
Standby Letters of Credit and Other Financial Guarantees Issued | Less than 1 Year | |
Guarantees | |
Maximum potential payout/notional | 1,052 |
Standby Letters of Credit and Other Financial Guarantees Issued | 1 - 3 Years | |
Guarantees | |
Maximum potential payout/notional | 753 |
Standby Letters of Credit and Other Financial Guarantees Issued | 3 - 5 Years | |
Guarantees | |
Maximum potential payout/notional | 1,472 |
Standby Letters of Credit and Other Financial Guarantees Issued | Over 5 Years | |
Guarantees | |
Maximum potential payout/notional | 5,611 |
Market Value Guarantees | |
Guarantees | |
Maximum potential payout/notional | 250 |
Carrying amount (asset)/liability | 2 |
Collateral/recourse | 4 |
Market Value Guarantees | Less than 1 Year | |
Guarantees | |
Maximum potential payout/notional | 38 |
Market Value Guarantees | 1 - 3 Years | |
Guarantees | |
Maximum potential payout/notional | 133 |
Market Value Guarantees | 3 - 5 Years | |
Guarantees | |
Maximum potential payout/notional | 71 |
Market Value Guarantees | Over 5 Years | |
Guarantees | |
Maximum potential payout/notional | 8 |
Liquidity Facilities | |
Guarantees | |
Maximum potential payout/notional | 2,812 |
Carrying amount (asset)/liability | (5) |
Collateral/recourse | 4,854 |
Liquidity Facilities | Less than 1 Year | |
Guarantees | |
Maximum potential payout/notional | 2,812 |
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 | 23,323 |
Carrying amount (asset)/liability | 8 |
Collateral/recourse | 0 |
Whole Loan Sales Guarantees | Less than 1 Year | |
Guarantees | |
Maximum potential payout/notional | 0 |
Whole Loan Sales Guarantees | 1 - 3 Years | |
Guarantees | |
Maximum potential payout/notional | 0 |
Whole Loan Sales Guarantees | 3 - 5 Years | |
Guarantees | |
Maximum potential payout/notional | 2 |
Whole Loan Sales Guarantees | Over 5 Years | |
Guarantees | |
Maximum potential payout/notional | 23,321 |
Securitizations Representations and Warranties | |
Guarantees | |
Maximum potential payout/notional | 59,704 |
Carrying amount (asset)/liability | 103 |
Collateral/recourse | 0 |
Securitizations Representations and Warranties | Less than 1 Year | |
Guarantees | |
Maximum potential payout/notional | 0 |
Securitizations Representations and Warranties | 1 - 3 Years | |
Guarantees | |
Maximum potential payout/notional | 0 |
Securitizations Representations and Warranties | 3 - 5 Years | |
Guarantees | |
Maximum potential payout/notional | 0 |
Securitizations Representations and Warranties | Over 5 Years | |
Guarantees | |
Maximum potential payout/notional | 59,704 |
General Partner Guarantees | |
Guarantees | |
Maximum potential payout/notional | 394 |
Carrying amount (asset)/liability | 44 |
Collateral/recourse | 0 |
General Partner Guarantees | Less than 1 Year | |
Guarantees | |
Maximum potential payout/notional | 3 |
General Partner Guarantees | 1 - 3 Years | |
Guarantees | |
Maximum potential payout/notional | 30 |
General Partner Guarantees | 3 - 5 Years | |
Guarantees | |
Maximum potential payout/notional | 124 |
General Partner Guarantees | Over 5 Years | |
Guarantees | |
Maximum potential payout/notional | $ 237 |
Commitments, Guarantees and 100
Commitments, Guarantees and Contingencies (Types of Guarantees) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Whole Loan Sales | Under Representations and Warranties | |
Guarantees | |
Current UPB | $ 23,300 |
Current UPB when known | 4,400 |
UPB at the time of sale when the current UPB is not known | 18,900 |
UPB at the time of sale | 42,700 |
Residential Mortgage Loans (RMBS) | |
Guarantees | |
Debt securities sponsored by the Firm | 147,900 |
Residential Mortgage Loans (RMBS) | Under Representations and Warranties | |
Guarantees | |
Current UPB | 11,600 |
Debt securities sponsored by the Firm | 47,000 |
Insolvent debt securities | 21,000 |
Reserve for breach of guarantee arrangements | 103 |
Residential Mortgage Loans (RMBS) | Not Under Representations and Warranties | |
Guarantees | |
Debt securities sponsored by the Firm | 79,900 |
U.S. RMBS | Under Representations and Warranties | |
Guarantees | |
Cumulative losses on sponsored securities | 15,200 |
U.S. CMBS | |
Guarantees | |
Debt securities sponsored by the Firm | 37,300 |
U.S. CMBS | Under Representations and Warranties | |
Guarantees | |
Current UPB | 31,700 |
Non-U.S. CMBS | |
Guarantees | |
Debt securities sponsored by the Firm | 6,200 |
Non-U.S. CMBS | Under Representations and Warranties | |
Guarantees | |
Current UPB when known | 800 |
UPB at the time of sale when the current UPB is not known | $ 400 |
Commitments, Guarantees and 101
Commitments, Guarantees and Contingencies (Contingencies) (Details) € in Millions, $ in Millions | Dec. 25, 2016USD ($) | Jul. 15, 2010USD ($) | May 31, 2016EUR (€) | May 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Jan. 23, 2015USD ($) | Sep. 23, 2014USD ($) | Sep. 19, 2014USD ($) | Apr. 28, 2014USD ($) | Dec. 30, 2013USD ($) | Jul. 08, 2013USD ($) | May 03, 2013USD ($) | Jan. 10, 2013USD ($) | Sep. 28, 2012USD ($) | Aug. 08, 2012USD ($) | Aug. 07, 2012USD ($) |
Contingencies | ||||||||||||||||||||
Legal expenses | $ 263 | $ 563 | $ 3,364 | |||||||||||||||||
China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Damages sought | $ 228 | |||||||||||||||||||
Credit default swap asset | 275 | |||||||||||||||||||
Estimate of possible loss | $ 240 | |||||||||||||||||||
Loss in period | $ 12 | |||||||||||||||||||
Morgan Stanley Mortgage Loan Trust 2006-4SL, et al. v. Morgan Stanley Mortgage Capital Inc. | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Original principal balance of loans in trust | $ 303 | |||||||||||||||||||
Morgan Stanley Mortgage Loan Trust 2006-4SL, et al. v. Morgan Stanley Mortgage Capital Inc. | Maximum | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Estimate of possible loss | 149 | |||||||||||||||||||
Morgan Stanley Mortgage Loan Trust 2006-14SL, et al. v. Morgan Stanley Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc. | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Original principal balance of loans in trust | $ 354 | |||||||||||||||||||
Morgan Stanley Mortgage Loan Trust 2006-14SL, et al. v. Morgan Stanley Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc. | Maximum | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Estimate of possible loss | 527 | |||||||||||||||||||
Morgan Stanley Mortgage Loan Trust 2006-13ARX v. Morgan Stanley Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc. | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Original principal balance of loans in trust | $ 609 | |||||||||||||||||||
Morgan Stanley Mortgage Loan Trust 2006-13ARX v. Morgan Stanley Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc. | Maximum | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Estimate of possible loss | 170 | |||||||||||||||||||
Morgan Stanley Mortgage Loan Trust 2006-10SL, et al. v. Morgan Stanley Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc. | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Original principal balance of loans in trust | $ 300 | |||||||||||||||||||
Morgan Stanley Mortgage Loan Trust 2006-10SL, et al. v. Morgan Stanley Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc. | Maximum | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Estimate of possible loss | 197 | |||||||||||||||||||
Morgan Stanley Mortgage Loan Trust 2007-4SL v Morgan Stanley Mortgage Capital Holdings LLC | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Original principal balance of loans in trust | $ 305 | |||||||||||||||||||
Deutsche Zentral-Genossenschaftsbank AG et al. v. Morgan Stanley et al. | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Mortgage pass through certificate backed by securitization trusts original amount | $ 644 | |||||||||||||||||||
Mortgage pass through certificate backed by securitization trusts unpaid amount | $ 247 | |||||||||||||||||||
Mortgage pass through certificate incurred losses | $ 86 | |||||||||||||||||||
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. | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Original principal balance of loans in trust | $ 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. | Maximum | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Estimate of possible loss | 240 | |||||||||||||||||||
Wilmington Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC et al. | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Original principal balance of loans in trust | $ 516 | |||||||||||||||||||
Wilmington Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC et al. | Maximum | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Estimate of possible loss | 152 | |||||||||||||||||||
Deutsche Bank National Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Original principal balance of loans in trust | $ 735 | |||||||||||||||||||
Deutsche Bank National Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC | Maximum | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Estimate of possible loss | 292 | |||||||||||||||||||
Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. (NIMS 2007-1) | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Original principal balance of loans in trust | $ 475 | |||||||||||||||||||
Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. (NIMS 2007-1) | Maximum | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Estimate of possible loss | 126 | |||||||||||||||||||
Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. (Trust 2007-NC4) | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Original principal balance of loans in trust | $ 876 | |||||||||||||||||||
Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. (Trust 2007-NC4) | Maximum | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Estimate of possible loss | 277 | |||||||||||||||||||
Deutsche Bank National Trust Company solely in its capacity as Trustee of the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 v. Morgan Stanley Mortgage Capital Holdings LLC as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc., and Morgan Stanley ABS Capital I Inc. | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Original principal balance of loans in trust | $ 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. | Maximum | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Estimate of possible loss | $ 277 | |||||||||||||||||||
German Proceedings | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Damages sought | € 209 | $ 220 | ||||||||||||||||||
German Proceedings | Maximum | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
Estimate of possible loss | € | € 209 |
Variable Interest Entities a102
Variable Interest Entities and Securitization Activities (Consolidated VIEs) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity | ||
VIE assets | $ 2,410 | $ 2,600 |
VIE liabilities | 318 | 436 |
Credit-linked Notes | ||
Variable Interest Entity | ||
VIE assets | 501 | 900 |
VIE liabilities | 0 | 0 |
Other Structured Financings | ||
Variable Interest Entity | ||
VIE assets | 602 | 787 |
VIE liabilities | 10 | 13 |
Asset-backed Securities | ||
Variable Interest Entity | ||
VIE assets | 397 | 668 |
VIE liabilities | 283 | 423 |
Other | ||
Variable Interest Entity | ||
VIE assets | 910 | 245 |
VIE liabilities | $ 25 | $ 0 |
Variable Interest Entities a103
Variable Interest Entities and Securitization Activities (Assets and Liabilities by Balance Sheet Caption) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and due from banks | $ 22,017 | $ 19,827 | $ 19,827 | $ 21,381 |
Trading assets, at fair value | 262,154 | 239,505 | ||
Customer and other receivables | 46,460 | 45,407 | ||
Goodwill | 6,577 | 6,584 | $ 6,588 | |
Intangible assets | 2,721 | 2,984 | ||
Other assets | 52,125 | 51,087 | ||
Assets | 814,949 | 787,465 | ||
Liabilities | ||||
Other secured financings, fair value | 5,041 | 2,854 | ||
Other liabilities and accrued expenses | 15,896 | 18,711 | ||
Liabilities | 737,772 | 711,281 | ||
Noncontrolling interests | 1,127 | 1,002 | ||
Additional maximum exposure to losses | 78 | 72 | ||
Consolidated VIEs | ||||
Assets | ||||
Cash and due from banks | 74 | 14 | ||
Trading assets, at fair value | 1,295 | 1,842 | ||
Customer and other receivables | 13 | 3 | ||
Goodwill | 18 | 0 | ||
Intangible assets | 177 | 0 | ||
Other assets | 833 | 741 | ||
Assets | 2,410 | 2,600 | ||
Liabilities | ||||
Other secured financings, fair value | 289 | 431 | ||
Other liabilities and accrued expenses | 29 | 5 | ||
Liabilities | 318 | 436 | ||
Noncontrolling interests | $ 228 | $ 37 |
Variable Interest Entities a104
Variable Interest Entities and Securitization Activities (Non-Consolidated VIEs) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity | ||
Additional VIE assets issued by securitization SPEs | $ 11,700 | $ 12,900 |
Mortgage and Asset-Backed Securities | ||
Variable Interest Entity | ||
VIE assets that the Firm does not consolidate (unpaid principal balance) | 101,916 | 126,872 |
Maximum exposure to loss | 11,927 | 13,855 |
Residential Mortgage | ||
Variable Interest Entity | ||
VIE assets that the Firm does not consolidate (unpaid principal balance) | 4,775 | 13,787 |
Commercial Mortgage | ||
Variable Interest Entity | ||
VIE assets that the Firm does not consolidate (unpaid principal balance) | 54,021 | 57,313 |
U.S. Agency Collateralized Mortgage Obligations | ||
Variable Interest Entity | ||
VIE assets that the Firm does not consolidate (unpaid principal balance) | 14,796 | 13,236 |
Other Consumer or Commercial Loans | ||
Variable Interest Entity | ||
VIE assets that the Firm does not consolidate (unpaid principal balance) | 28,324 | 42,536 |
Collateralized Debt Obligations | ||
Variable Interest Entity | ||
VIE assets that the Firm does not consolidate (unpaid principal balance) | 11,341 | 8,805 |
Maximum exposure to loss | 1,344 | 1,490 |
Municipal Tender Option Bonds | ||
Variable Interest Entity | ||
VIE assets that the Firm does not consolidate (unpaid principal balance) | 4,857 | 4,654 |
Maximum exposure to loss | 2,862 | 2,835 |
Other Structured Financings | ||
Variable Interest Entity | ||
VIE assets that the Firm does not consolidate (unpaid principal balance) | 4,293 | 2,201 |
Maximum exposure to loss | 1,757 | 1,490 |
Other | ||
Variable Interest Entity | ||
VIE assets that the Firm does not consolidate (unpaid principal balance) | 39,077 | 20,775 |
Maximum exposure to loss | 5,150 | 4,143 |
Assets | Mortgage and Asset-Backed Securities | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 11,243 | 13,361 |
Assets | Collateralized Debt Obligations | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 1,245 | 1,259 |
Assets | Municipal Tender Option Bonds | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 54 | 6 |
Assets | Other Structured Financings | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 1,183 | 685 |
Assets | Other | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 4,895 | 3,867 |
Debt and Equity Interests | Mortgage and Asset-Backed Securities | ||
Variable Interest Entity | ||
Maximum exposure to loss | 11,243 | 13,361 |
Carrying value of exposure to loss | 11,243 | 13,361 |
Debt and Equity Interests | Residential Mortgage | ||
Variable Interest Entity | ||
Maximum exposure to loss | 458 | 1,012 |
Debt and Equity Interests | Commercial Mortgage | ||
Variable Interest Entity | ||
Maximum exposure to loss | 2,656 | 2,871 |
Debt and Equity Interests | U.S. Agency Collateralized Mortgage Obligations | ||
Variable Interest Entity | ||
Maximum exposure to loss | 2,758 | 2,763 |
Debt and Equity Interests | Other Consumer or Commercial Loans | ||
Variable Interest Entity | ||
Maximum exposure to loss | 5,371 | 6,715 |
Debt and Equity Interests | Collateralized Debt Obligations | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,245 | 1,259 |
Carrying value of exposure to loss | 1,245 | 1,259 |
Debt and Equity Interests | Municipal Tender Option Bonds | ||
Variable Interest Entity | ||
Maximum exposure to loss | 50 | 1 |
Carrying value of exposure to loss | 49 | 1 |
Debt and Equity Interests | Other Structured Financings | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,570 | 1,129 |
Carrying value of exposure to loss | 1,183 | 685 |
Debt and Equity Interests | Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 4,877 | 3,854 |
Carrying value of exposure to loss | 4,877 | 3,854 |
Net Derivative and Other Contracts | Mortgage and Asset-Backed Securities | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of exposure to loss | 0 | 0 |
Net Derivative and Other Contracts | Collateralized Debt Obligations | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of exposure to loss | 0 | 0 |
Net Derivative and Other Contracts | Municipal Tender Option Bonds | ||
Variable Interest Entity | ||
Maximum exposure to loss | 2,812 | 2,834 |
Carrying value of exposure to loss | 5 | 5 |
Net Derivative and Other Contracts | Other Structured Financings | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of exposure to loss | 0 | 0 |
Net Derivative and Other Contracts | Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 45 | 67 |
Carrying value of exposure to loss | 18 | 13 |
Commitments, Guarantees and Other | Mortgage and Asset-Backed Securities | ||
Variable Interest Entity | ||
Maximum exposure to loss | 684 | 494 |
Commitments, Guarantees and Other | Collateralized Debt Obligations | ||
Variable Interest Entity | ||
Maximum exposure to loss | 99 | 231 |
Commitments, Guarantees and Other | Municipal Tender Option Bonds | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Commitments, Guarantees and Other | Other Structured Financings | ||
Variable Interest Entity | ||
Maximum exposure to loss | 187 | 361 |
Commitments, Guarantees and Other | Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | $ 228 | $ 222 |
Variable Interest Entities a105
Variable Interest Entities and Securitization Activities (Transfers of Assets with Continuing Involvement 1) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity | ||
Derivative assets (fair value) | $ 31,206 | $ 28,613 |
Derivative liabilities (fair value) | 29,315 | 29,474 |
Special Purpose Entities | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,306 | 2,246 |
Interests purchased in the secondary market (fair value) | 154 | 320 |
Derivative assets (fair value) | 350 | 494 |
Derivative liabilities (fair value) | 459 | 449 |
Special Purpose Entities | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 397 | 887 |
Interests purchased in the secondary market (fair value) | 56 | 187 |
Special Purpose Entities | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 909 | 1,359 |
Interests purchased in the secondary market (fair value) | 98 | 133 |
Special Purpose Entities | Residential Mortgage | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 19,381 | 22,440 |
Retained interests (fair value) | 4 | 160 |
Interests purchased in the secondary market (fair value) | 23 | 60 |
Derivative assets (fair value) | 0 | 0 |
Derivative liabilities (fair value) | 0 | 0 |
Special Purpose Entities | Residential Mortgage | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 0 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Residential Mortgage | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 4 | 160 |
Interests purchased in the secondary market (fair value) | 23 | 60 |
Special Purpose Entities | Commercial Mortgage Loans (CMBS) | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 43,104 | 72,760 |
Retained interests (fair value) | 101 | 301 |
Interests purchased in the secondary market (fair value) | 105 | 151 |
Derivative assets (fair value) | 261 | 343 |
Derivative liabilities (fair value) | 0 | 0 |
Special Purpose Entities | Commercial Mortgage Loans (CMBS) | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 22 | 238 |
Interests purchased in the secondary market (fair value) | 30 | 88 |
Special Purpose Entities | Commercial Mortgage Loans (CMBS) | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 79 | 63 |
Interests purchased in the secondary market (fair value) | 75 | 63 |
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 11,092 | 17,978 |
Retained interests (fair value) | 375 | 649 |
Interests purchased in the secondary market (fair value) | 26 | 99 |
Derivative assets (fair value) | 0 | 0 |
Derivative liabilities (fair value) | 0 | 0 |
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 375 | 649 |
Interests purchased in the secondary market (fair value) | 26 | 99 |
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 0 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Credit-Linked Notes and Other | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 11,613 | 12,235 |
Retained interests (fair value) | 826 | 1,136 |
Interests purchased in the secondary market (fair value) | 0 | 10 |
Derivative assets (fair value) | 89 | 151 |
Derivative liabilities (fair value) | 459 | 449 |
Special Purpose Entities | Credit-Linked Notes and Other | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 0 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Credit-Linked Notes and Other | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 826 | 1,136 |
Interests purchased in the secondary market (fair value) | $ 0 | $ 10 |
Variable Interest Entities a106
Variable Interest Entities and Securitization Activities (Transfers of Assets with Continuing Involvement 2) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity | ||
Derivative assets (fair value) | $ 31,206 | $ 28,613 |
Derivative liabilities (fair value) | 29,315 | 29,474 |
Special Purpose Entities | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,306 | 2,246 |
Interests purchased in the secondary market (fair value) | 154 | 320 |
Derivative assets (fair value) | 350 | 494 |
Derivative liabilities (fair value) | 459 | 449 |
Special Purpose Entities | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 397 | 887 |
Interests purchased in the secondary market (fair value) | 56 | 187 |
Special Purpose Entities | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 909 | 1,359 |
Interests purchased in the secondary market (fair value) | 98 | 133 |
Special Purpose Entities | Level 2 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 399 | 903 |
Interests purchased in the secondary market (fair value) | 140 | 299 |
Derivative assets (fair value) | 348 | 466 |
Derivative liabilities (fair value) | 98 | 110 |
Special Purpose Entities | Level 2 | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 385 | 886 |
Interests purchased in the secondary market (fair value) | 56 | 187 |
Special Purpose Entities | Level 2 | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 14 | 17 |
Interests purchased in the secondary market (fair value) | 84 | 112 |
Special Purpose Entities | Level 3 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 907 | 1,343 |
Interests purchased in the secondary market (fair value) | 14 | 21 |
Derivative assets (fair value) | 2 | 28 |
Derivative liabilities (fair value) | 361 | 339 |
Special Purpose Entities | Level 3 | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 12 | 1 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Level 3 | Noninvestment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 895 | 1,342 |
Interests purchased in the secondary market (fair value) | $ 14 | $ 21 |
Variable Interest Entities a107
Variable Interest Entities and Securitization Activities (Proceeds from retained interests in securitization transactions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Proceeds received from new securitization transactions | $ 18,975 | $ 21,243 | $ 20,553 |
Proceeds from retained interests in securitization transactions | 2,701 | 3,062 | 3,041 |
OTC | Equity Derivatives | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Carrying value of assets derecognized at the time of sale and gross cash proceeds | 11,209 | 7,878 | |
Fair value of assets sold | 11,301 | 7,935 | |
Fair value of derivative assets recognized in the consolidated balance sheets | 128 | 97 | |
Fair value of derivative liabilities recognized in the consolidated balance sheets | 36 | 40 | |
CLO Entities Sponsored by Non-Affiliates | Corporate Loans | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Proceeds received from new securitization transactions | $ 475 | $ 1,110 | $ 2,388 |
Variable Interest Entities a108
Variable Interest Entities and Securitization Activities (Failed Sales) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Failed Sales | ||
Assets, carrying value | $ 285 | $ 400 |
Liabilities, carrying value | $ 285 | $ 400 |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Regulatory Requirements | ||
Description of regulatory requirements on capital adequacy | In addition to the minimum risk-based capital ratio requirements, on a fully phased-in basis by 2019, the Firm will be subject to: A greater than 2.5% Common Equity Tier 1 capital conservation buffer; The Common Equity Tier 1 global systemically important bank capital surcharge, currently at 3%; and Up to a 2.5% Common Equity Tier 1 countercyclical capital buffer, currently set by banking regulators at zero (collectively, the “buffers”). | |
Description of possible effects of noncompliance | In 2016, the phase-in amount for each of the buffers is 25% of the fully phased-in buffer requirement. Failure to maintain the buffers will result in restrictions on the Firm’s ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. | |
MS&Co. | ||
Regulatory Requirements | ||
Net capital | $ 10,311 | $ 10,254 |
Amount of capital that exceeds the minimum required | 8,034 | 8,458 |
Net capital, minimum amount required to hold | 1,000 | |
Net capital, minimum amount required to hold in accordance with the market and credit risk standards | 500 | |
Amount by which if net capital falls below, the company is required to notify the SEC | 5,000 | |
MSSB LLC | ||
Regulatory Requirements | ||
Net capital | 3,946 | 3,613 |
Amount of capital that exceeds the minimum required | 3,797 | 3,459 |
Other Regulated Subsidiaries | ||
Regulatory Requirements | ||
Net assets of consolidated subsidiaries may be restricted as to the payment of cash dividends and advances to the parent company | $ 25,300 | $ 28,600 |
Regulatory Requirements (Capita
Regulatory Requirements (Capital Measures) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Balance | ||
Common Equity Tier 1 capital | $ 60,398 | $ 59,409 |
Tier 1 capital | 68,097 | 66,722 |
Total capital | 78,642 | 79,403 |
Assets | ||
Total RWAs | 358,141 | 384,162 |
Adjusted average assets | $ 811,402 | $ 803,574 |
Ratio | ||
Common Equity Tier 1 capital | 16.90% | 15.50% |
Tier 1 capital | 19.00% | 17.40% |
Total capital | 22.00% | 20.70% |
Tier 1 leverage | 8.40% | 8.30% |
Minimum Ratio | ||
Common Equity Tier 1 capital | 5.90% | 4.50% |
Tier 1 capital | 7.40% | 6.00% |
Total capital | 9.40% | 8.00% |
Tier 1 leverage | 4.00% | 4.00% |
Regulatory Requirements (Signif
Regulatory Requirements (Significant U.S. Bank Operating Subsidiaries' Capital) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Regulatory Requirements | ||
Common Equity Tier 1 capital | $ 60,398 | $ 59,409 |
Tier 1 capital | 68,097 | 66,722 |
Total capital | $ 78,642 | $ 79,403 |
Ratio | ||
Common Equity Tier 1 capital | 16.90% | 15.50% |
Tier 1 capital | 19.00% | 17.40% |
Total capital | 22.00% | 20.70% |
Tier 1 leverage | 8.40% | 8.30% |
MSBNA | ||
Regulatory Requirements | ||
Common Equity Tier 1 capital | $ 13,398 | $ 13,333 |
Tier 1 capital | 13,398 | 13,333 |
Total capital | 14,858 | 15,097 |
Tier 1 leverage | $ 13,398 | $ 13,333 |
Ratio | ||
Common Equity Tier 1 capital | 16.90% | 15.10% |
Tier 1 capital | 16.90% | 15.10% |
Total capital | 18.70% | 17.10% |
Tier 1 leverage | 10.50% | 10.20% |
Required Capital Ratio | ||
Common Equity Tier 1 capital | 6.50% | 6.50% |
Tier 1 capital ratio | 8.00% | 8.00% |
Total capital ratio | 10.00% | 10.00% |
Tier 1 leverage ratio | 5.00% | 5.00% |
MSPBNA | ||
Regulatory Requirements | ||
Common Equity Tier 1 capital | $ 5,589 | $ 4,197 |
Tier 1 capital | 5,589 | 4,197 |
Total capital | 5,626 | 4,225 |
Tier 1 leverage | $ 5,589 | $ 4,197 |
Ratio | ||
Common Equity Tier 1 capital | 26.10% | 26.50% |
Tier 1 capital | 26.10% | 26.50% |
Total capital | 26.30% | 26.70% |
Tier 1 leverage | 10.60% | 10.50% |
Required Capital Ratio | ||
Common Equity Tier 1 capital | 6.50% | 6.50% |
Tier 1 capital ratio | 8.00% | 8.00% |
Total capital ratio | 10.00% | 10.00% |
Tier 1 leverage ratio | 5.00% | 5.00% |
Total Equity (Changes in Shares
Total Equity (Changes in Shares of Common Stock Outstanding) (Details) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Total Equity | ||
Shares outstanding at beginning of period | 1,920,024,027 | 1,951,000,000 |
Treasury stock purchases | (133,000,000) | (78,000,000) |
Other | 65,000,000 | 47,000,000 |
Shares outstanding at end of period | 1,852,481,601 | 1,920,024,027 |
Total Equity (Dividents and Sha
Total Equity (Dividents and Share Repurchase) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Total Equity | |||||||||||
Outstanding common stock repurchased | $ 3,500 | $ 2,125 | |||||||||
Authorized repurchase amount of outstanding common stock | $ 3,500 | $ 3,500 | |||||||||
Stock repurchase program start date | Jul. 1, 2016 | ||||||||||
Stock repurchase program expiration date | Jun. 30, 2017 | ||||||||||
Dividends declared per common share | $ 0.2 | $ 0.2 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.1 | $ 0.7 | $ 0.55 | $ 0.35 |
Start date of current common stock dividend per share declared | Jul. 20, 2016 |
Total Equity (Preferred Stock G
Total Equity (Preferred Stock General Disclosure) (Details) $ / shares in Units, $ in Millions | Dec. 15, 2016 | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Preferred Stock | ||||
Preferred stock dividends declared | $ 468 | $ 452 | $ 311 | |
Shareholders of record, date | Dec. 30, 2016 | |||
Dividend payable date | Jan. 17, 2017 | |||
Preferred stock shares authorized | shares | 30,000,000 | |||
Issuance of preferred stock, net of issuance costs | $ 0 | $ 1,493 | $ 2,782 | |
Series K Preferred Stock | ||||
Preferred Stock | ||||
Issuance Date | Jan. 31, 2017 | |||
Depositary Shares issued (in shares) | shares | 40,000,000 | |||
Depositary Shares issued, aggregate price | $ 1,000 | |||
Fraction of underlying stock that each Depositary Share represents | 0.001 | |||
Preferred stock par value (per share) | $ / shares | $ 0.01 | |||
Start date of preferred stock redemption | Apr. 15, 2027 | |||
Preferred stock redemption price (per share) | $ / shares | $ 25,000 | |||
Preferred stock redemption price per Depositary Share | $ / shares | $ 25 | |||
Issuance of preferred stock, net of issuance costs | $ 969 |
Total Equity (Preferred Stock O
Total Equity (Preferred Stock Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock | ||
Preferred stock carrying value | $ 7,520 | $ 7,520 |
Series A Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 44,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,100 | 1,100 |
Series C Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 519,882 | |
Liquidation preference per share | $ 1,000 | |
Preferred stock carrying value | $ 408 | 408 |
Series C Preferred Stock | MUFG | ||
Class of Stock | ||
Preferred stock shares issued | 1,160,791 | |
Preferred stock aggregate purchase price | $ 911 | |
Preferred stock redemption, shares | 640,909 | |
Preferred stock redemption amount | $ 503 | |
Preferred stock converted to common shares | $ 705 | |
Series E Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 34,500 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 862 | 862 |
Series F Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 34,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 850 | 850 |
Series G Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 20,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 500 | 500 |
Series H Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 52,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,300 | 1,300 |
Series I Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 40,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,000 | 1,000 |
Series J Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 60,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,500 | $ 1,500 |
Total Equity (Preferred Stock I
Total Equity (Preferred Stock Issuance Description) (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Series A Preferred Stock | |
Preferred Stock | |
Issuance Date | Jul. 31, 2016 |
Depositary Shares issued (in shares) | shares | 44,000,000 |
Fraction of underlying stock that each Depositary Share represents | 0.001 |
Preferred stock par value (per share) | $ 0.01 |
Preferred stock redemption price (per share) | $ 25,000 |
Start date of preferred stock redemption | Jul. 15, 2011 |
Preferred stock dividend declared (per share) | $ 255.56 |
Preferred stock redemption price per Depositary Share | $ 25 |
Series C Preferred Stock | |
Preferred Stock | |
Issuance Date | Oct. 13, 2008 |
Preferred stock dividend rate | 10.00% |
Preferred stock redemption price (per share) | $ 1,100 |
Start date of preferred stock redemption | Oct. 15, 2011 |
Preferred stock dividend declared (per share) | $ 25 |
Series E Preferred Stock | |
Preferred Stock | |
Issuance Date | Sep. 30, 2013 |
Depositary Shares issued (in shares) | shares | 34,500,000 |
Fraction of underlying stock that each Depositary Share represents | 0.001 |
Preferred stock par value (per share) | $ 0.01 |
Preferred stock redemption price (per share) | $ 25,000 |
Start date of preferred stock redemption | Oct. 15, 2023 |
Preferred stock dividend declared (per share) | $ 445.31 |
Preferred stock redemption price per Depositary Share | $ 25 |
Series F Preferred Stock | |
Preferred Stock | |
Issuance Date | Dec. 10, 2013 |
Depositary Shares issued (in shares) | shares | 34,000,000 |
Fraction of underlying stock that each Depositary Share represents | 0.001 |
Preferred stock par value (per share) | $ 0.01 |
Preferred stock redemption price (per share) | $ 25,000 |
Start date of preferred stock redemption | Jan. 15, 2024 |
Preferred stock dividend declared (per share) | $ 429.69 |
Preferred stock redemption price per Depositary Share | $ 25 |
Series G Preferred Stock | |
Preferred Stock | |
Issuance Date | Apr. 29, 2014 |
Depositary Shares issued (in shares) | shares | 20,000,000 |
Fraction of underlying stock that each Depositary Share represents | 0.001 |
Preferred stock par value (per share) | $ 0.01 |
Preferred stock redemption price (per share) | $ 25,000 |
Start date of preferred stock redemption | Jul. 15, 2019 |
Preferred stock dividend declared (per share) | $ 414.06 |
Preferred stock redemption price per Depositary Share | $ 25 |
Series H Preferred Stock | |
Preferred Stock | |
Issuance Date | Apr. 29, 2014 |
Depositary Shares issued (in shares) | shares | 1,300,000 |
Fraction of underlying stock that each Depositary Share represents | 0.04 |
Preferred stock par value (per share) | $ 0.01 |
Preferred stock redemption price (per share) | $ 25,000 |
Start date of preferred stock redemption | Jul. 15, 2019 |
Preferred stock dividend declared (per share) | $ 681.25 |
Preferred stock redemption price per Depositary Share | $ 1,000 |
Series I Preferred Stock | |
Preferred Stock | |
Issuance Date | Sep. 18, 2014 |
Depositary Shares issued (in shares) | shares | 40,000,000 |
Fraction of underlying stock that each Depositary Share represents | 0.001 |
Preferred stock par value (per share) | $ 0.01 |
Preferred stock redemption price (per share) | $ 25,000 |
Start date of preferred stock redemption | Oct. 15, 2024 |
Preferred stock dividend declared (per share) | $ 398.44 |
Preferred stock redemption price per Depositary Share | $ 25 |
Series J Preferred Stock | |
Preferred Stock | |
Issuance Date | Mar. 19, 2015 |
Depositary Shares issued (in shares) | shares | 1,500,000 |
Fraction of underlying stock that each Depositary Share represents | 0.04 |
Preferred stock par value (per share) | $ 0.01 |
Preferred stock redemption price (per share) | $ 25,000 |
Start date of preferred stock redemption | Jul. 15, 2020 |
Preferred stock dividend declared (per share) | $ 693.75 |
Preferred stock redemption price per Depositary Share | $ 1,000 |
Total Equity (Accumulated Other
Total Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Cumulative adjustment for accounting change related to DVA | [1] | $ 0 | ||
OCI during the period | (676) | $ (412) | $ (249) | |
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (1,656) | (1,248) | (1,093) | |
Cumulative adjustment for accounting change related to DVA | [1] | (312) | ||
OCI during the period | (675) | (408) | (155) | |
Ending balance | (2,643) | (1,656) | (1,248) | |
Foreign Currency Translation Adjustments | ||||
Beginning balance | (963) | (663) | (266) | |
Cumulative adjustment for accounting change related to DVA | 0 | |||
OCI during the period | (23) | (300) | (397) | |
Ending balance | (986) | (963) | (663) | |
AFS Securities | ||||
Beginning balance | (319) | (73) | (282) | |
Cumulative adjustment for accounting change related to DVA | 0 | |||
OCI during the period | (269) | (246) | 209 | |
Ending balance | (588) | (319) | (73) | |
Pension, Postretirement and Other | ||||
Beginning balance | (374) | (512) | (545) | |
Cumulative adjustment for accounting change related to DVA | 0 | |||
OCI during the period | (100) | 138 | 33 | |
Ending balance | (474) | (374) | (512) | |
DVA | ||||
Beginning balance | 0 | 0 | 0 | |
Cumulative adjustment for accounting change related to DVA | (312) | |||
OCI during the period | (283) | 0 | 0 | |
Ending balance | $ (595) | $ 0 | $ 0 | |
[1] | Debt valuation adjustment (“DVA”) represent s the change in the fair value resulting from fluctuations in the Firm’s credit spreads and other credit factors related to liabilities carried at fair value under the fair value option , primarily related to certain Long-term and Short-term borrowings. In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , a cumulative catch - up adjustment wa s recorded as of January 1, 2016 to move the cumulative unrealized DVA amount, net of noncontrolling interest and tax, related to outstanding liabilities under the fair value option election from Retained earnings into Accumulated other comprehensive incom e (loss) (“AOCI”). See Notes 2 and 15 for further information. |
Total Equity (Period Changes in
Total Equity (Period Changes in OCI Components) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pre-tax Gain (Loss): Foreign Currency Translation Adjustments | |||
OCI activity | $ (24) | $ (119) | $ (139) |
Reclassified to earnings | 4 | 0 | 0 |
Net OCI | (20) | (119) | (139) |
Pre-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | |||
OCI activity | (313) | (305) | 391 |
Reclassified to earnings | (113) | (84) | (40) |
Net OCI | (426) | (389) | 351 |
Pre-tax Gain (Loss): Pension, Postretirement and Other | |||
OCI activity | (162) | 202 | 41 |
Reclassified to earnings | (3) | 9 | 12 |
Net OCI | (165) | 211 | 53 |
Pre-tax Gain (Loss): Change in Net DVA | |||
OCI activity | (429) | ||
Reclassified to earnings | (31) | ||
Net OCI | (460) | ||
Income Tax Benefit (Provision): Foreign Currency Translation Adjustments | |||
OCI activity | 9 | (185) | (352) |
Reclassified to earnings | 0 | 0 | 0 |
Net OCI | 9 | (185) | (352) |
Income Tax Benefit (Provision): Change in Net Unrealized Gains (Losses) on AFS Securities | |||
OCI activity | 116 | 112 | (158) |
Reclassified to earnings | 41 | 31 | 16 |
Net OCI | 157 | 143 | (142) |
Income Tax Benefit (Provision): Pension, Postretirement and Other | |||
OCI activity | 64 | (70) | (17) |
Reclassified to earnings | 1 | (3) | (3) |
Net OCI | 65 | (73) | (20) |
Income Tax Benefit (Provision): Change in Net DVA | |||
OCI activity | 153 | ||
Reclassified to earnings | 11 | ||
Net OCI | 164 | ||
After-tax Gain (Loss): Foreign Currency Translation Adjustments | |||
OCI activity | (15) | (304) | (491) |
Reclassified to earnings | 4 | 0 | 0 |
Net OCI | (11) | (304) | (491) |
After-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | |||
OCI activity | (197) | (193) | 233 |
Reclassified to earnings | (72) | (53) | (24) |
Net OCI | (269) | (246) | 209 |
After-tax Gain (Loss): Pension, Postretirement and Other | |||
OCI activity | (98) | 132 | 24 |
Reclassified to earnings | (2) | 6 | 9 |
Net OCI | (100) | 138 | 33 |
After-tax Gain (Loss): Change in Net DVA | |||
OCI activity | (276) | ||
Reclassified to earnings | (20) | ||
Net OCI | (296) | 0 | 0 |
Non-controlling Interests | |||
After-tax Gain (Loss): Foreign Currency Translation Adjustments | |||
OCI activity | 12 | (4) | (94) |
Reclassified to earnings | 0 | 0 | 0 |
Net OCI | 12 | (4) | (94) |
After-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | |||
OCI activity | 0 | 0 | 0 |
Reclassified to earnings | 0 | 0 | 0 |
Net OCI | 0 | 0 | 0 |
After-tax Gain (Loss): Pension, Postretirement and Other | |||
OCI activity | 0 | 0 | 0 |
Reclassified to earnings | 0 | 0 | 0 |
Net OCI | 0 | 0 | 0 |
After-tax Gain (Loss): Change in Net DVA | |||
OCI activity | (13) | ||
Reclassified to earnings | 0 | ||
Net OCI | (13) | ||
Parent | |||
After-tax Gain (Loss): Foreign Currency Translation Adjustments | |||
OCI activity | (27) | (300) | (397) |
Reclassified to earnings | 4 | 0 | 0 |
Net OCI | (23) | (300) | (397) |
After-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | |||
OCI activity | (197) | (193) | 233 |
Reclassified to earnings | (72) | (53) | (24) |
Net OCI | (269) | (246) | 209 |
After-tax Gain (Loss): Pension, Postretirement and Other | |||
OCI activity | (98) | 132 | 24 |
Reclassified to earnings | (2) | 6 | 9 |
Net OCI | (100) | $ 138 | $ 33 |
After-tax Gain (Loss): Change in Net DVA | |||
OCI activity | (263) | ||
Reclassified to earnings | (20) | ||
Net OCI | $ (283) |
Total Equity (Cumulative Foreig
Total Equity (Cumulative Foreign Currency Translation Adjustments) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Total Equity | ||
Resulting from net investments in subsidiaries with a non-U.S. dollar functional currency | $ (2,018) | $ (1,996) |
Resulting from realized or unrealized losses on hedges, net of tax | 1,032 | 1,033 |
Total cumulative foreign currency translation adjustments, net of tax | (986) | (963) |
Investments in Non-U.S. dollar functional currency subsidiaries subject to hedges | 8,856 | 8,170 |
Noncontrolling interests | $ 1,127 | $ 1,002 |
Earnings Per Common Share (Calc
Earnings Per Common Share (Calculation of Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Basic EPS | |||||||||||
Income from continuing operations | $ 1,680 | $ 1,632 | $ 1,650 | $ 1,160 | $ 943 | $ 1,051 | $ 1,833 | $ 2,468 | $ 6,122 | $ 6,295 | $ 3,681 |
Income (loss) from discontinued operations | 0 | 8 | (4) | (3) | (7) | (2) | (2) | (5) | 1 | (16) | (14) |
Net income | 1,680 | 1,640 | 1,646 | 1,157 | 936 | 1,049 | 1,831 | 2,463 | 6,123 | 6,279 | 3,667 |
Net income applicable to noncontrolling interests | 14 | 43 | 64 | 23 | 28 | 31 | 24 | 69 | 144 | 152 | 200 |
Net income applicable to Morgan Stanley | 1,666 | 1,597 | 1,582 | 1,134 | 908 | 1,018 | 1,807 | 2,394 | 5,979 | 6,127 | 3,467 |
Less: Preferred stock dividends | (468) | (452) | (311) | ||||||||
Less: Allocation of (earnings) loss to participating RSUs | (3) | (4) | (4) | ||||||||
Earnings applicable to Morgan Stanley common shareholders | $ 1,510 | $ 1,518 | $ 1,425 | $ 1,055 | $ 753 | $ 939 | $ 1,665 | $ 2,314 | $ 5,508 | $ 5,671 | $ 3,152 |
Weighted average common shares outstanding | 1,849 | 1,909 | 1,924 | ||||||||
Earnings per basic common share | |||||||||||
Income from continuing operations | $ 0.84 | $ 0.82 | $ 0.77 | $ 0.56 | $ 0.4 | $ 0.49 | $ 0.87 | $ 1.21 | $ 2.98 | $ 2.98 | $ 1.65 |
Income (loss) from discontinued operations | 0 | 0.01 | (0.01) | 0 | 0 | 0 | 0 | (0.01) | 0 | (0.01) | (0.01) |
Earnings per basic common share | $ 0.84 | $ 0.83 | $ 0.76 | $ 0.56 | $ 0.4 | $ 0.49 | $ 0.87 | $ 1.2 | $ 2.98 | $ 2.97 | $ 1.64 |
Diluted EPS | |||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ 1,510 | $ 1,518 | $ 1,425 | $ 1,055 | $ 753 | $ 939 | $ 1,665 | $ 2,314 | $ 5,508 | $ 5,671 | $ 3,152 |
Weighted average common shares outstanding | 1,849 | 1,909 | 1,924 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options and RSUs | 38 | 44 | 47 | ||||||||
Weighted average common shares outstanding and common stock equivalents | 1,887 | 1,953 | 1,971 | ||||||||
Earnings per diluted common share | |||||||||||
Income from continuing operations | $ 0.81 | $ 0.8 | $ 0.75 | $ 0.55 | $ 0.39 | $ 0.48 | $ 0.85 | $ 1.18 | $ 2.92 | $ 2.91 | $ 1.61 |
Income (loss) from discontinued operations | 0 | 0.01 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (0.01) | (0.01) |
Earnings per diluted common share | $ 0.81 | $ 0.81 | $ 0.75 | $ 0.55 | $ 0.39 | $ 0.48 | $ 0.85 | $ 1.18 | $ 2.92 | $ 2.9 | $ 1.6 |
Antidilutive securities excluded from EPS computations | 13 | 12 | 15 |
Interest Income and Interest121
Interest Income and Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | |||||||||||
Investment securities | $ 1,142 | $ 876 | $ 613 | ||||||||
Loans | 2,724 | 2,163 | 1,690 | ||||||||
Interest bearing deposits with banks | 170 | 108 | 109 | ||||||||
Securities purchased under agreements to resell and Securities borrowed | (374) | (560) | (298) | ||||||||
Trading assets, net of Trading liabilities | 2,131 | 2,262 | 2,109 | ||||||||
Customer receivables and Other | 1,223 | 986 | 1,190 | ||||||||
Total Interest income | 7,016 | 5,835 | 5,413 | ||||||||
Interest expense: | |||||||||||
Deposits | 83 | 78 | 106 | ||||||||
Short-term and Long-term borrowings | 3,606 | 3,497 | 3,613 | ||||||||
Securities sold under agreements to repurchase and Securities loaned | 977 | 1,024 | 1,216 | ||||||||
Customer payables and Other | (1,348) | (1,857) | (1,257) | ||||||||
Total Interest expense | 3,318 | 2,742 | 3,678 | ||||||||
Net interest | $ 883 | $ 1,003 | $ 913 | $ 899 | $ 1,037 | $ 762 | $ 698 | $ 596 | $ 3,698 | $ 3,093 | $ 1,735 |
Deferred Compensation Plans (St
Deferred Compensation Plans (Stock-based Compensation Plans) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Payment Awards | |||
Stock-based compensation expense | $ 1,137 | $ 1,103 | $ 1,262 |
Tax benefit for stock-based compensation expense | 381 | 369 | 404 |
Unrecognized compensation cost related to unvested stock-based awards | 619 | ||
Unrecognized compensation cost related to unvested stock-based awards will be recognized in 2017 | 415 | ||
Unrecognized compensation cost related to unvested stock-based awards will be recognized in 2018 | 175 | ||
Unrecognized compensation cost related to unvested stock-based awards will be recognized thereafter | $ 29 | ||
Shares available for future grant | 103 | ||
Employee Who Satisfied Retirement Eligible Requirements under Award Terms that Do Not Contain Service Period [Member] | 2017 | |||
Share-based Payment Awards | |||
Stock-based compensation expense | $ 73 | ||
Employee Who Satisfied Retirement Eligible Requirements under Award Terms that Do Not Contain Service Period [Member] | 2016 | |||
Share-based Payment Awards | |||
Stock-based compensation expense | 68 | ||
Employee Who Satisfied Retirement Eligible Requirements under Award Terms that Do Not Contain Service Period [Member] | 2015 | |||
Share-based Payment Awards | |||
Stock-based compensation expense | 31 | ||
Restricted Stock Units | |||
Share-based Payment Awards | |||
Stock-based compensation expense | 1,054 | 1,080 | 1,212 |
Stock Options | |||
Share-based Payment Awards | |||
Stock-based compensation expense | 2 | (3) | 5 |
PSU | |||
Share-based Payment Awards | |||
Stock-based compensation expense | $ 81 | $ 26 | $ 45 |
Deferred Compensation Plans (Re
Deferred Compensation Plans (Restricted Stock Units) (Details) - RSUs - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | |||
Non-option awards at beginning of period | 105 | ||
Granted | 38 | ||
Conversion to common stock | (40) | ||
Canceled | (3) | ||
Non-option awards at end of period | 100 | 105 | |
Weighted Average Grant Date Fair Value (Per Share) | |||
Non-option awards at beginning of period | $ 29.26 | ||
Granted | 25.48 | $ 34.76 | $ 32.58 |
Conversions to common stock | 25.42 | ||
Canceled | 29.57 | ||
Non-option awards at end of period | $ 29.35 | $ 29.26 | |
Non-option awards that were vested or expected to vest (shares) | 98 | ||
Weighted average grant date fair value of non-option awards that were vested or expected to vest (per share) | $ 29.35 | ||
Weighted average remaining term | 1 year 4 months | ||
Intrinsic value of outstanding non-option awards vested or expected to vest | $ 4,159 | ||
Aggregate intrinsic value of non-option awards converted to common stock | $ 1,068 | $ 1,646 | $ 1,461 |
Deferred Compensation Plans (Un
Deferred Compensation Plans (Unvested Restricted Stock Units) (Details) - RSUs - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | |||
Unvested non-option awards at beginning of period | 70 | ||
Granted | 38 | ||
Vested | (40) | ||
Canceled | (3) | ||
Unvested non-option awards at end of period | 65 | 70 | |
Weighted Average Grant Date Fair Value (Per Share) | |||
Unvested non-option awards at beginning of period | $ 29.91 | ||
Granted | 25.48 | $ 34.76 | $ 32.58 |
Vested | 27.7 | ||
Canceled | 29.58 | ||
Unvested non-option awards at end of period | $ 28.7 | $ 29.91 | |
Unvested non-option awards that were expected to vest (shares) | 63 | ||
Weighted average grant date fair value of unvested non-option awards that were expected to vest (per share) | $ 28.68 | ||
Aggregate fair value of non-option awards vested | $ 1,088 | $ 1,693 | $ 1,517 |
Deferred Compensation Plans 125
Deferred Compensation Plans (Stock Options) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Payment Awards | |||
Stock options granted | 0 | 0 | 0 |
Stock Option Activity | |||
Options outstanding at beginning of period | 17 | ||
Exercised | (4) | ||
Expired | (11) | ||
Options outstanding at end of period | 2 | 17 | |
Options exercisable at end of period | 2 | ||
Weighted Average Exercise Price (per Share) | |||
Options outstanding at beginning of period | $ 52.26 | ||
Exercised | 26.9 | $ 30.01 | $ 24.68 |
Expired | 65.45 | ||
Options outstanding at end of period | 28.2 | $ 52.26 | |
Options exercisable at end of period | $ 28.2 | ||
Options vested | 2 | ||
Weighted average exercise price of options vested (per share) | $ 28.2 | ||
Aggregate intrinsic value of stock options exercised | $ 41 | $ 2 | $ 2 |
Proceeds from stock options exercised | 66 | ||
Income tax benefit realized from the exercise of the stock options | 3 | ||
Intrinsic value of exercisable stock options | $ 26 | ||
$20.00 - $24.99 | |||
Stock Option Activity | |||
Options outstanding at end of period | 1 | ||
Weighted Average Exercise Price (per Share) | |||
Exercised | $ 22.98 | ||
Exercise Price Range | |||
Options exercisable, average remaining life | 1 year 1 month | ||
$25.00 - $34.99 | |||
Stock Option Activity | |||
Options outstanding at end of period | 1 | ||
Weighted Average Exercise Price (per Share) | |||
Exercised | $ 30.01 | ||
Exercise Price Range | |||
Options exercisable, average remaining life | 1 year 1 month | ||
Stock Options | |||
Share-based Payment Awards | |||
Award vesting period | 3 years | ||
Stock Options | Minimum | |||
Share-based Payment Awards | |||
Award expiration period | 5 years | ||
Stock Options | Maximum | |||
Share-based Payment Awards | |||
Award expiration period | 10 years |
Deferred Compensation Plans (Pe
Deferred Compensation Plans (Performance-Based Stock Units) (Details) - PSU - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Payment Awards | |||
Terms of award | PSUs will vest and convert to shares of common stock at the end of the performance period only if the Firm satisfies predetermined performance and market-based conditions over the three-year performance period that began on January 1 of the grant year and ends three years later on December 31. | ||
Fair Value Assumptions | |||
Risk-free interest rate | 1.10% | 0.90% | 0.80% |
Expected stock price volatility | 25.40% | 29.60% | 44.20% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock-based Compensation Awards Activity | |||
Non-option awards at beginning of period | 4 | ||
Awarded | 2 | ||
Conversion to common stock | (2) | ||
Non-option awards at end of period | 4 | 4 | |
MS Average ROE | |||
Share-based Payment Awards | |||
Fair value of non-option awards (per share) | $ 25.19 | $ 34.58 | $ 32.81 |
MS Average ROE, Less than 5% | Minimum | |||
Share-based Payment Awards | |||
Multiplier | 0 | ||
MS Average ROE, 11.5% or More | Maximum | |||
Share-based Payment Awards | |||
Multiplier | 1.5 | ||
TSR | |||
Share-based Payment Awards | |||
Fair value of non-option awards (per share) | $ 24.51 | $ 38.07 | $ 37.72 |
Relative TSR, Less than -50% | Minimum | |||
Share-based Payment Awards | |||
Multiplier | 0 | ||
Relative TSR, 25% or more | Maximum | |||
Share-based Payment Awards | |||
Multiplier | 1.5 |
Deferred Compensation Plans (De
Deferred Compensation Plans (Deferred Cash-based Compensation Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Cash-based Compensation Plans | |||
Deferred cash-based awards, compensation expense | $ 950 | $ 660 | $ 1,757 |
Return on referenced investments | 228 | 112 | 408 |
Total | 1,178 | 772 | 2,165 |
Unrecognized compensation cost related to unvested deferred cash-based awards | 688 | ||
Unrecognized compensation cost related to deferred cash-base awards will be recognized in 2017 | 394 | ||
Unrecognized compensation cost related to deferred cash-base awards will be recognized in 2018 | 111 | ||
Unrecognized compensation cost related to deferred cash-base awards will be recognized thereafter | 183 | ||
Employee Who Satisfied Retirement-eligible Requirements under Award Terms that Do Not Contain a Service Period | 2017 | |||
Deferred Cash-based Compensation Plans | |||
Deferred cash-based awards, compensation expense | $ 151 | ||
Employee Who Satisfied Retirement-eligible Requirements under Award Terms that Do Not Contain a Service Period | 2016 | |||
Deferred Cash-based Compensation Plans | |||
Deferred cash-based awards, compensation expense | $ 144 | ||
Employee Who Satisfied Retirement-eligible Requirements under Award Terms that Do Not Contain a Service Period | 2015 | |||
Deferred Cash-based Compensation Plans | |||
Deferred cash-based awards, compensation expense | $ 92 |
Deferred Compensation Plans (20
Deferred Compensation Plans (2016 Performance Year Deferred Compensation Awards) (Details) - USD ($) $ in Millions | 1 Months Ended | |
Jan. 31, 2017 | Dec. 31, 2016 | |
Deferred Compensation Awards | ||
Deferred stock-based awards granted | $ 763,000 | |
Deferred cash-based awards granted | $ 895,000 | |
2016 Performance Year Deferred Compensation Awards | ||
Deferred Compensation Awards | ||
Stock-based awards, 2017 | $ 440 | |
Stock-based awards, 2018 | 174 | |
Stock-based award, Thereafter | 149 | |
Stock-based award, Total | 763 | |
Deferred cash-based awards, 2017 | 518 | |
Deferred cash-based awards, 2018 | 263 | |
Deferred cash-based awards, Thereafter | 114 | |
Deferred cash-based awards, Total | 895 | |
Total, 2017 | 958 | |
Total, 2018 | 437 | |
Total, Thereafter | 263 | |
Total | $ 1,658 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Expense (Income)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense | |||
Description of amortization of unrealized net gains and losses | 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. | ||
Pension Plans | |||
Components of Net Periodic Benefit Expense (Income) | |||
Service cost, benefits earned during the period | $ 17 | $ 19 | $ 20 |
Interest cost on projected benefit obligation | 150 | 152 | 154 |
Expected return on plan assets | (122) | (120) | (110) |
Net amortization of prior service credit | 0 | (1) | 0 |
Net amortization of actuarial loss | 12 | 26 | 22 |
Curtailment loss | 0 | 0 | 3 |
Settlement loss | 0 | 2 | 2 |
Net periodic benefit expense (income) | 57 | 78 | 91 |
Amounts Recognized in Other Comprehensive Loss (Income) on Pre-tax Basis | |||
Net gain (loss) | (149) | 212 | (18) |
Prior service credit (cost) | 1 | 1 | (2) |
Amortization of prior service credit | 0 | (1) | 0 |
Amortization of net loss | 12 | 28 | 27 |
Total recognized in other comprehensive income (loss) | $ (136) | $ 240 | $ 7 |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense | |||
Discount rate | 4.27% | 3.86% | 4.74% |
Expected long-term rate of return on plan assets | 3.61% | 3.59% | 3.75% |
Rate of future compensation increases | 3.19% | 2.85% | 1.06% |
Other Postretirement Plan | |||
Components of Net Periodic Benefit Expense (Income) | |||
Service cost, benefits earned during the period | $ 1 | $ 1 | $ 2 |
Interest cost on projected benefit obligation | 4 | 3 | 5 |
Net amortization of prior service credit | (17) | (18) | (14) |
Net periodic benefit expense (income) | (12) | (14) | (7) |
Amounts Recognized in Other Comprehensive Loss (Income) on Pre-tax Basis | |||
Net gain (loss) | (2) | (3) | (9) |
Prior service credit (cost) | 0 | (9) | 64 |
Amortization of prior service credit | (17) | (18) | (14) |
Total recognized in other comprehensive income (loss) | $ (19) | $ (30) | $ 41 |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense | |||
Discount rate | 4.13% | 3.77% | 3.77% |
Employee Benefit Plans (Rollfor
Employee Benefit Plans (Rollforward of the Benefit Obligation and Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans | |||
Rollforward of benefit obligation | |||
Benefit obligation at beginning of year | $ 3,604 | $ 4,007 | |
Service cost | 17 | 19 | $ 20 |
Interest cost | 150 | 152 | 154 |
Actuarial loss (gain) | 159 | (267) | |
Plan amendments | (1) | (1) | |
Plan curtailments | 0 | (9) | |
Plan settlements | (19) | (29) | |
Change in mortality assumptions | 64 | (46) | |
Benefits paid | (219) | (194) | |
Other, including foreign currency exchange rate changes | (44) | (28) | |
Benefit obligation at end of year | 3,711 | 3,604 | 4,007 |
Rollforward of fair value of plan assets | |||
Fair value of plan assets at beginning of year | 3,497 | 3,705 | |
Actual return on plan assets | 196 | 9 | |
Employer contributions | 38 | 31 | |
Benefits paid | (219) | (194) | |
Plan settlements | (19) | (29) | |
Other, including foreign currency exchange rate changes | (62) | (25) | |
Fair value of plan assets at end of year | 3,431 | 3,497 | 3,705 |
Funded (unfunded) status | (280) | (107) | |
Other Postretirement Plan | |||
Rollforward of benefit obligation | |||
Benefit obligation at beginning of year | 87 | 75 | |
Service cost | 1 | 1 | 2 |
Interest cost | 4 | 3 | 5 |
Actuarial loss (gain) | 0 | 4 | |
Plan amendments | 0 | 9 | |
Plan curtailments | 0 | 0 | |
Plan settlements | 0 | 0 | |
Change in mortality assumptions | 1 | (1) | |
Benefits paid | (5) | (4) | |
Other, including foreign currency exchange rate changes | 0 | 0 | |
Benefit obligation at end of year | 88 | 87 | 75 |
Rollforward of fair value of plan assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 5 | 4 | |
Benefits paid | (5) | (4) | |
Plan settlements | 0 | 0 | |
Other, including foreign currency exchange rate changes | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded (unfunded) status | $ (88) | $ (87) |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts recognized in accumulated other comprehensive income (loss) | ||
Accumulated benefit obligation | $ 3,696 | $ 3,592 |
Pension Plans | ||
Amounts recognized in the consolidated balance sheets | ||
Assets | 230 | 382 |
Liabilities | (510) | (489) |
Net amount recognized | (280) | (107) |
Amounts recognized in accumulated other comprehensive income (loss) | ||
Prior service credit (cost) | 2 | 1 |
Net gain (loss) | (763) | (626) |
Net gain (loss) recognized | (761) | (625) |
Estimated net loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit expense (income) over 2017 | 17 | |
Other Postretirement Plan | ||
Amounts recognized in the consolidated balance sheets | ||
Assets | 0 | 0 |
Liabilities | (88) | (87) |
Net amount recognized | (88) | (87) |
Amounts recognized in accumulated other comprehensive income (loss) | ||
Prior service credit (cost) | 17 | 34 |
Net gain (loss) | 0 | 2 |
Net gain (loss) recognized | 17 | $ 36 |
Estimated prior service credit that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit expense over 2017 | $ 17 |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets) (Details) - Pension Plans - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Pension Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets | ||
Projected benefit obligation | $ 566 | $ 543 |
Fair value of plan assets | 56 | 54 |
Pension Plans with Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | ||
Accumulated benefit obligation | 552 | 531 |
Fair value of plan assets | $ 56 | $ 54 |
Employee Benefit Plans (Assumpt
Employee Benefit Plans (Assumptions) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plans | ||
Weighted Average Assumptions Used in Calculating Benefit Obligation | ||
Discount rate | 4.01% | 4.27% |
Rate of future compensation increases | 3.10% | 3.19% |
Other Postretirement Plan | ||
Weighted Average Assumptions Used in Calculating Benefit Obligation | ||
Discount rate | 4.01% | 4.13% |
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates | ||
Effect on postretirement benefit obligation, 1% increase | $ 6 | |
Effect on postretirement benefit obligation, 1% decrease | $ (5) | |
U.S. Postretirement Benefit Obligation | ||
Assumed Health Care Cost Trend Rates | ||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2,038 | 2,038 |
U.S. Postretirement Benefit Obligation | Medical | ||
Assumed Health Care Cost Trend Rates | ||
Health care cost trend rate assumed for next year | 5.96% | 6.25% |
U.S. Postretirement Benefit Obligation | Prescription | ||
Assumed Health Care Cost Trend Rates | ||
Health care cost trend rate assumed for next year | 9.32% | 11.00% |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Value of Net Pension Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Plans | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | $ 3,431 | $ 3,497 | $ 3,705 |
Pension Plans | Derivative Contracts (Liabilities) | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 225 | 65 | |
Pension Plans | Other Liabilities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 100 | ||
Pension Plans | Liabilities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 225 | 165 | |
Pension Plans | Cash and Cash Equivalents | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 55 | 28 | |
Pension Plans | U.S. Government and Agency Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 1,916 | 1,661 | |
Pension Plans | U.S. Treasury Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 1,493 | 1,398 | |
Pension Plans | U.S. Agency Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 423 | 263 | |
Pension Plans | Corporate and Other Debt | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 13 | 24 | |
Pension Plans | State and Municipal Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 2 | ||
Pension Plans | Collateralized Debt Obligations | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 13 | 22 | |
Pension Plans | Derivative Contracts (Assets) | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 159 | 224 | |
Pension Plans | Derivative-related Cash Collateral Receivable | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 76 | ||
Pension Plans | Other Investments | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 38 | 35 | |
Pension Plans | Other Receivables | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 54 | ||
Pension Plans | Commingled Trust Funds: Fixed Income Funds | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 999 | 1,239 | |
Pension Plans | Commingled Trust Funds: Money Market Funds | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 86 | 59 | |
Pension Plans | Foreign Fixed Income Funds | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 111 | 149 | |
Pension Plans | Foreign liquidity funds | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 9 | 98 | |
Pension Plans | Foreign Targeted Cash Flow Funds | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 194 | 91 | |
Pension Plans | Assets | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 2,257 | 2,026 | |
Pension Plans | Level 1 | Derivative Contracts (Liabilities) | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 1 | Other Liabilities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | ||
Pension Plans | Level 1 | Liabilities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 1 | Cash and Cash Equivalents | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 55 | 28 | |
Pension Plans | Level 1 | U.S. Government and Agency Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 1,493 | 1,398 | |
Pension Plans | Level 1 | U.S. Treasury Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 1,493 | 1,398 | |
Pension Plans | Level 1 | U.S. Agency Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 1 | Corporate and Other Debt | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 1 | State and Municipal Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | ||
Pension Plans | Level 1 | Collateralized Debt Obligations | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 1 | Derivative Contracts (Assets) | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 1 | Derivative-related Cash Collateral Receivable | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | ||
Pension Plans | Level 1 | Other Investments | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 1 | Other Receivables | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | ||
Pension Plans | Level 1 | Assets | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 1,548 | 1,426 | |
Pension Plans | Level 2 | Derivative Contracts (Liabilities) | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 225 | 65 | |
Pension Plans | Level 2 | Other Liabilities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 100 | ||
Pension Plans | Level 2 | Liabilities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 225 | 165 | |
Pension Plans | Level 2 | Cash and Cash Equivalents | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 2 | U.S. Government and Agency Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 423 | 263 | |
Pension Plans | Level 2 | U.S. Treasury Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 2 | U.S. Agency Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 423 | 263 | |
Pension Plans | Level 2 | Corporate and Other Debt | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 13 | 24 | |
Pension Plans | Level 2 | State and Municipal Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 2 | ||
Pension Plans | Level 2 | Collateralized Debt Obligations | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 13 | 22 | |
Pension Plans | Level 2 | Derivative Contracts (Assets) | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 159 | 224 | |
Pension Plans | Level 2 | Derivative-related Cash Collateral Receivable | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 76 | ||
Pension Plans | Level 2 | Other Investments | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 2 | Other Receivables | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 54 | ||
Pension Plans | Level 2 | Assets | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 671 | 565 | |
Pension Plans | Level 3 | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 38 | 35 | $ 36 |
Pension Plans | Level 3 | Derivative Contracts (Liabilities) | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 3 | Other Liabilities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | ||
Pension Plans | Level 3 | Liabilities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 3 | Cash and Cash Equivalents | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 3 | U.S. Government and Agency Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 3 | U.S. Treasury Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 3 | U.S. Agency Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 3 | Corporate and Other Debt | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 3 | State and Municipal Securities | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | ||
Pension Plans | Level 3 | Collateralized Debt Obligations | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 3 | Derivative Contracts (Assets) | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | 0 | |
Pension Plans | Level 3 | Derivative-related Cash Collateral Receivable | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | ||
Pension Plans | Level 3 | Other Investments | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 38 | 35 | |
Pension Plans | Level 3 | Other Receivables | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | 0 | ||
Pension Plans | Level 3 | Assets | |||
Pension and Other Postretirement Plans | |||
Pension plan assets | $ 38 | $ 35 | |
U.S. Qualified Plan | |||
Pension and Other Postretirement Plans | |||
Percentage as to total pension plan assets | 88.00% |
Employee Benefit Plans (Changes
Employee Benefit Plans (Changes in Level 3 Pension Assets) (Details) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension and Other Postretirement Plans | ||
Fair value of plan assets at beginning of year | $ 3,497 | $ 3,705 |
Fair value of plan assets at end of year | 3,431 | 3,497 |
Level 3 | ||
Pension and Other Postretirement Plans | ||
Fair value of plan assets at beginning of year | 35 | 36 |
Actual return on plan assets related to assets held at end of period | 0 | (4) |
Purchases, sales, other settlements and issuances, net | 3 | 3 |
Fair value of plan assets at end of year | $ 38 | $ 35 |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Future Benefit Payments) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Pension and Other Postretirement Plans | |
Estimated contributions by employer in 2017 | $ 50 |
Pension Plans | |
Pension and Other Postretirement Plans | |
2,017 | 149 |
2,018 | 135 |
2,019 | 139 |
2,020 | 145 |
2,021 | 153 |
2022-2026 | 867 |
Other Postretirement Plan | |
Pension and Other Postretirement Plans | |
2,017 | 5 |
2,018 | 6 |
2,019 | 6 |
2,020 | 6 |
2,021 | 7 |
2022-2026 | $ 31 |
Employee Benefit Plans (Defined
Employee Benefit Plans (Defined Contribution Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Morgan Stanley 401(k) Plan | |||
Defined Contribution Plans | |||
Descriptions of plan | For 2016 and 2015, the Firm made a $1 for $1 Firm match up to 4% of eligible pay, up to the Internal Revenue Service (“IRS”) limit. | ||
Maximum percent of employer matching contributions | 4.00% | 4.00% | |
401(k) expense | $ 250 | $ 255 | $ 256 |
Morgan Stanley 401(k) Plan | Eligible U.S. Employees with Eligible Pay Less than or Equal to $100,000 | |||
Defined Contribution Plans | |||
Percent of employer matching contribution of eligible pay | 2.00% | ||
Non-U.S. Defined Contribution Pension Plans | |||
Defined Contribution Plans | |||
401(k) expense | $ 101 | $ 111 | $ 117 |
Income Taxes (Components of Pro
Income Taxes (Components of Provision for (Benefit from) Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||||||||||
U.S. federal | $ 330 | $ 239 | $ (604) | ||||||||
U.S. state and local | 221 | 144 | 260 | ||||||||
Current income tax expense (benefit), total | 1,148 | 1,006 | 150 | ||||||||
Deferred: | |||||||||||
U.S. federal | 1,336 | 1,031 | (207) | ||||||||
U.S. state and local | 74 | 43 | (56) | ||||||||
Deferred income tax expense (benefit), total | 1,578 | 1,194 | (240) | ||||||||
Provision for (benefit from) income taxes from continuing operations | $ 566 | $ 749 | $ 833 | $ 578 | $ 496 | $ 423 | $ 894 | $ 387 | 2,726 | 2,200 | (90) |
Provision for (benefit from) income taxes from discontinued operations | 1 | (7) | (5) | ||||||||
Net income tax provision (benefit) to Additional paid-in capital related to employee stock-based compensation transactions | 24 | (203) | (6) | ||||||||
United Kingdom | |||||||||||
Current: | |||||||||||
Non-U.S. | 196 | 247 | 88 | ||||||||
Deferred: | |||||||||||
Non-U.S. | 56 | (56) | (31) | ||||||||
Japan | |||||||||||
Current: | |||||||||||
Non-U.S. | 28 | 19 | 114 | ||||||||
Deferred: | |||||||||||
Non-U.S. | 127 | 58 | 56 | ||||||||
Hong Kong | |||||||||||
Current: | |||||||||||
Non-U.S. | 14 | 24 | 34 | ||||||||
Deferred: | |||||||||||
Non-U.S. | 31 | 50 | 9 | ||||||||
Other | |||||||||||
Current: | |||||||||||
Non-U.S. | 359 | 333 | 258 | ||||||||
Deferred: | |||||||||||
Non-U.S. | (46) | 68 | (11) | ||||||||
Brazil | |||||||||||
Deferred: | |||||||||||
Provision for (benefit from) income taxes from continuing operations | 125 | 62 | 44 | ||||||||
France | |||||||||||
Deferred: | |||||||||||
Provision for (benefit from) income taxes from continuing operations | 38 | 42 | |||||||||
India | |||||||||||
Deferred: | |||||||||||
Provision for (benefit from) income taxes from continuing operations | $ 46 | 45 | 38 | ||||||||
Mexico | |||||||||||
Deferred: | |||||||||||
Provision for (benefit from) income taxes from continuing operations | 68 | $ 38 | |||||||||
Netherlands | |||||||||||
Deferred: | |||||||||||
Provision for (benefit from) income taxes from continuing operations | $ 58 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Effective Income Tax Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Percent | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
U.S. state and local income taxes, net of U.S. federal income tax benefits | 2.20% | 1.40% | 6.50% |
Domestic tax credits | (2.50%) | (1.50%) | (5.00%) |
Tax exempt income | (0.10%) | (0.20%) | (3.50%) |
Non-U.S. earnings | |||
Foreign tax rate differential | (3.10%) | (8.70%) | (22.50%) |
Change in reinvestment assertion | 0.00% | 0.20% | 1.40% |
Change in foreign tax tates | 0.10% | 0.00% | 0.00% |
Wealth Management legal entity restructuring | 0.00% | 0.00% | (38.70%) |
Non-deductible legal expenses | 0.00% | 0.00% | 25.50% |
Other | (0.80%) | (0.30%) | (1.20%) |
Effective income tax rate | 30.80% | 25.90% | (2.50%) |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |||
Net discrete tax benefits | $ 2,226 | ||
Effective income tax rate excluding effect of net discrete tax benefits | 31.60% | 32.50% | 59.50% |
Tax provision due to the impact of non-deductible expenses | $ 900 | ||
Release of a Deferred Tax Liability Related to Internal Restructuring | |||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |||
Net discrete tax benefits | 1,380 | ||
Remeasurement of Reserves and Related Interest Due to New Information Regarding the Status of a Multi-year Tax Authority Examination | |||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |||
Net discrete tax benefits | $ 68 | 609 | |
Repatriation of Non-U.S. Earnings at Cost Lower Than Originally Estimated | |||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |||
Net discrete tax benefits | $ 564 | $ 237 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Gross deferred tax assets | ||
Tax credits and loss carryforwards | $ 731 | $ 1,987 |
Employee compensation and benefit plans | 3,504 | 3,514 |
Valuation and liability allowances | 656 | 846 |
Valuation of inventory, investments and receivables | 1,062 | 738 |
Other | 21 | 35 |
Total deferred tax assets | 5,974 | 7,120 |
Deferred tax assets valuation allowance | 164 | 139 |
Deferred tax assets after valuation allowance | 5,810 | 6,981 |
Gross deferred tax liabilities | ||
Non-U.S. operations | 270 | 269 |
Fixed assets | 773 | 716 |
Total deferred tax liabilities | 1,043 | 985 |
Net deferred tax assets | 4,767 | 5,996 |
Deferred tax asset, tax credit carryforwards | 465 | 1,647 |
Cumulative earnings attributable to foreign subsidiaries | 12,006 | 10,209 |
Deferred tax liability not recorded with respect to earnings attributable to foreign subsidiaries | $ 1,111 | $ 893 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Rollforward of Unrecognized Tax Benefits | |||
Balance at beginning of period | $ 1,804 | $ 2,228 | $ 4,096 |
Increases based on tax positions related to the current period | 172 | 230 | 135 |
Increases based on tax positions related to prior periods | 14 | 114 | 100 |
Decreases based on tax positions related to prior periods | (134) | (753) | (2,080) |
Decreases related to settlements with taxing authorities | 0 | (7) | (19) |
Decreases related to a lapse of applicable statute of limitations | (5) | (8) | (4) |
Balance at end of period | 1,851 | 1,804 | 2,228 |
Unrecognized tax benefits that , if recognized, would favorably affect the effective tax rate in future periods | 1,100 | 1,100 | 1,000 |
Recognized interest expense (benefit) (net of federal and state income tax benefits) | 28 | 18 | (35) |
Interest expense accrued net of federal and state income tax benefits | $ 150 | $ 122 | $ 258 |
Income Taxes (Earliest Tax Year
Income Taxes (Earliest Tax Year Subject to Examination in Major Tax Jurisdictions) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
United States | |
Income Tax Examination | |
Tax Year | 1,999 |
New York State and New York City | |
Income Tax Examination | |
Tax Year | 2,007 |
Hong Kong | |
Income Tax Examination | |
Tax Year | 2,010 |
United Kingdom | |
Income Tax Examination | |
Tax Year | 2,010 |
Japan | |
Income Tax Examination | |
Tax Year | 2,013 |
Income Taxes (Income from Conti
Income Taxes (Income from Continuing Operations before Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes | |||
U.S. | $ 5,694 | $ 5,360 | $ 1,805 |
Non-U.S. | 3,154 | 3,135 | 1,786 |
Income (loss) from continuing operations before income taxes | $ 8,848 | $ 8,495 | $ 3,591 |
Segment and Geographic Infor144
Segment and Geographic Information (Selected Financial Information by Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information | |||||||||||
Total non-interest revenues | $ 8,138 | $ 7,906 | $ 7,996 | $ 6,893 | $ 6,701 | $ 7,005 | $ 9,045 | $ 9,311 | $ 30,933 | $ 32,062 | $ 32,540 |
Interest income | 7,016 | 5,835 | 5,413 | ||||||||
Interest expense | 3,318 | 2,742 | 3,678 | ||||||||
Net interest | 883 | 1,003 | 913 | 899 | 1,037 | 762 | 698 | 596 | 3,698 | 3,093 | 1,735 |
Net revenues | 9,021 | 8,909 | 8,909 | 7,792 | 7,738 | 7,767 | 9,743 | 9,907 | 34,631 | 35,155 | 34,275 |
Income (loss) from continuing operations before income taxes | 2,246 | 2,381 | 2,483 | 1,738 | 1,439 | 1,474 | 2,727 | 2,855 | 8,848 | 8,495 | 3,591 |
Provision for (benefit from) income taxes | 566 | 749 | 833 | 578 | 496 | 423 | 894 | 387 | 2,726 | 2,200 | (90) |
Income from continuing operations | 1,680 | 1,632 | 1,650 | 1,160 | 943 | 1,051 | 1,833 | 2,468 | 6,122 | 6,295 | 3,681 |
Income (loss) from discontinued operations, net of income taxes | 0 | 8 | (4) | (3) | (7) | (2) | (2) | (5) | 1 | (16) | (14) |
Net income | 1,680 | 1,640 | 1,646 | 1,157 | 936 | 1,049 | 1,831 | 2,463 | 6,123 | 6,279 | 3,667 |
Net income (loss) applicable to noncontrolling interests | 14 | 43 | 64 | 23 | 28 | 31 | 24 | 69 | 144 | 152 | 200 |
Net income applicable to Morgan Stanley | 1,666 | $ 1,597 | $ 1,582 | $ 1,134 | $ 908 | $ 1,018 | $ 1,807 | 2,394 | 5,979 | 6,127 | 3,467 |
Segment Reporting Information, Additional Information | |||||||||||
Reduction of fees from certain registered money market funds | 91 | 197 | 195 | ||||||||
Discrete income tax expense (benefit) | $ (135) | $ (564) | |||||||||
Gain on sale of retail property space | 141 | ||||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information | |||||||||||
Total non-interest revenues | (290) | (213) | (200) | ||||||||
Interest income | (882) | (462) | (494) | ||||||||
Interest expense | (882) | (462) | (498) | ||||||||
Net interest | 0 | 0 | 4 | ||||||||
Net revenues | (290) | (213) | (196) | ||||||||
Income (loss) from continuing operations before income taxes | 1 | 0 | 0 | ||||||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | ||||||||
Income from continuing operations | 1 | 0 | 0 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income | 1 | 0 | 0 | ||||||||
Net income (loss) applicable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income applicable to Morgan Stanley | 1 | 0 | 0 | ||||||||
Institutional Securities | |||||||||||
Segment Reporting Information | |||||||||||
Total non-interest revenues | 17,294 | 17,800 | 17,463 | ||||||||
Interest income | 4,005 | 3,190 | 3,389 | ||||||||
Interest expense | 3,840 | 3,037 | 3,981 | ||||||||
Net interest | 165 | 153 | (592) | ||||||||
Net revenues | 17,459 | 17,953 | 16,871 | ||||||||
Income (loss) from continuing operations before income taxes | 5,123 | 4,671 | (58) | ||||||||
Provision for (benefit from) income taxes | 1,318 | 825 | (90) | ||||||||
Income from continuing operations | 3,805 | 3,846 | 32 | ||||||||
Income (loss) from discontinued operations, net of income taxes | (1) | (17) | (19) | ||||||||
Net income | 3,804 | 3,829 | 13 | ||||||||
Net income (loss) applicable to noncontrolling interests | 155 | 133 | 109 | ||||||||
Net income applicable to Morgan Stanley | 3,649 | 3,696 | (96) | ||||||||
Segment Reporting Information, Additional Information | |||||||||||
Discrete income tax expense (benefit) | (68) | (564) | (839) | ||||||||
Gain on sale of retail property space | 84 | ||||||||||
Wealth Management | |||||||||||
Segment Reporting Information | |||||||||||
Total non-interest revenues | 11,821 | 12,144 | 12,549 | ||||||||
Interest income | 3,888 | 3,105 | 2,516 | ||||||||
Interest expense | 359 | 149 | 177 | ||||||||
Net interest | 3,529 | 2,956 | 2,339 | ||||||||
Net revenues | 15,350 | 15,100 | 14,888 | ||||||||
Income (loss) from continuing operations before income taxes | 3,437 | 3,332 | 2,985 | ||||||||
Provision for (benefit from) income taxes | 1,333 | 1,247 | (207) | ||||||||
Income from continuing operations | 2,104 | 2,085 | 3,192 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income | 2,104 | 2,085 | 3,192 | ||||||||
Net income (loss) applicable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income applicable to Morgan Stanley | 2,104 | 2,085 | 3,192 | ||||||||
Segment Reporting Information, Additional Information | |||||||||||
Discrete income tax expense (benefit) | (1,390) | ||||||||||
Gain on sale of retail property space | 40 | ||||||||||
Investment Management | |||||||||||
Segment Reporting Information | |||||||||||
Total non-interest revenues | 2,108 | 2,331 | 2,728 | ||||||||
Interest income | 5 | 2 | 2 | ||||||||
Interest expense | 1 | 18 | 18 | ||||||||
Net interest | 4 | (16) | (16) | ||||||||
Net revenues | 2,112 | 2,315 | 2,712 | ||||||||
Income (loss) from continuing operations before income taxes | 287 | 492 | 664 | ||||||||
Provision for (benefit from) income taxes | 75 | 128 | 207 | ||||||||
Income from continuing operations | 212 | 364 | 457 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 2 | 1 | 5 | ||||||||
Net income | 214 | 365 | 462 | ||||||||
Net income (loss) applicable to noncontrolling interests | (11) | 19 | 91 | ||||||||
Net income applicable to Morgan Stanley | $ 225 | $ 346 | 371 | ||||||||
Segment Reporting Information, Additional Information | |||||||||||
Gain on sale of retail property space | $ 17 |
Segment and Geographic Infor145
Segment and Geographic Information (Assets by Business Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Segment Reporting Information | |||
Assets | $ 787,465 | $ 814,949 | |
Deconsolidation in net assets previously attributable to noncontrolling interests | 191 | $ 1,606 | |
Real Estate Funds | |||
Segment Reporting Information | |||
Deconsolidation in net assets previously attributable to noncontrolling interests | 244 | $ 1,600 | |
Institutional Securities | |||
Segment Reporting Information | |||
Assets | 602,714 | 629,149 | |
Wealth Management | |||
Segment Reporting Information | |||
Assets | 179,708 | 181,135 | |
Investment Management | |||
Segment Reporting Information | |||
Assets | $ 5,043 | $ 4,665 |
Segment and Geographic Infor146
Segment and Geographic Information (Net Revenues and Total Assets by Region) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information | |||||||||||
Net revenues | $ 9,021 | $ 8,909 | $ 8,909 | $ 7,792 | $ 7,738 | $ 7,767 | $ 9,743 | $ 9,907 | $ 34,631 | $ 35,155 | $ 34,275 |
Total assets | 814,949 | 787,465 | 814,949 | 787,465 | |||||||
Americas | |||||||||||
Segment Reporting Information | |||||||||||
Net revenues | 25,487 | 25,080 | 25,140 | ||||||||
Total assets | 581,750 | 569,369 | 581,750 | 569,369 | |||||||
EMEA | |||||||||||
Segment Reporting Information | |||||||||||
Net revenues | 4,994 | 5,353 | 4,772 | ||||||||
Total assets | 158,819 | 146,177 | 158,819 | 146,177 | |||||||
Asia-Pacific | |||||||||||
Segment Reporting Information | |||||||||||
Net revenues | 4,150 | 4,722 | $ 4,363 | ||||||||
Total assets | $ 74,380 | $ 71,919 | $ 74,380 | $ 71,919 |
Segment and Geographic Infor147
Segment and Geographic Information (Total Assets by Geographic Information) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information | ||
Assets | $ 814,949 | $ 787,465 |
Americas | ||
Segment Reporting Information | ||
Assets | 581,750 | 569,369 |
Europe, Middle East and Africa | ||
Segment Reporting Information | ||
Assets | 158,819 | 146,177 |
Asia-Pacific | ||
Segment Reporting Information | ||
Assets | $ 74,380 | $ 71,919 |
Parent Company (Condensed Incom
Parent Company (Condensed Income Statements and Comprehensive Income Statements) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||||||||||
Trading | $ 10,209 | $ 10,114 | $ 9,377 | ||||||||
Investments | 160 | 541 | 836 | ||||||||
Total non-interest revenues | $ 8,138 | $ 7,906 | $ 7,996 | $ 6,893 | $ 6,701 | $ 7,005 | $ 9,045 | $ 9,311 | 30,933 | 32,062 | 32,540 |
Interest income | 7,016 | 5,835 | 5,413 | ||||||||
Interest expense | 3,318 | 2,742 | 3,678 | ||||||||
Net interest | 883 | 1,003 | 913 | 899 | 1,037 | 762 | 698 | 596 | 3,698 | 3,093 | 1,735 |
Net revenues | 9,021 | 8,909 | 8,909 | 7,792 | 7,738 | 7,767 | 9,743 | 9,907 | 34,631 | 35,155 | 34,275 |
Non-interest expenses | |||||||||||
Income before income taxes | 8,848 | 8,495 | 3,591 | ||||||||
Provision for (benefit from) income taxes | 566 | 749 | 833 | 578 | 496 | 423 | 894 | 387 | 2,726 | 2,200 | (90) |
Net income | 1,680 | 1,640 | 1,646 | 1,157 | 936 | 1,049 | 1,831 | 2,463 | 6,123 | 6,279 | 3,667 |
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | (11) | (304) | (491) | ||||||||
Change in net DVA | (296) | 0 | 0 | ||||||||
Comprehensive income | 5,304 | 5,719 | 3,312 | ||||||||
Preferred stock dividends and other | 156 | 79 | 157 | 79 | 155 | 79 | 142 | 80 | 471 | 456 | 315 |
Earnings applicable to Morgan Stanley common shareholders | $ 1,510 | $ 1,518 | $ 1,425 | $ 1,055 | $ 753 | $ 939 | $ 1,665 | $ 2,314 | 5,508 | 5,671 | 3,152 |
Parent Company | |||||||||||
Revenues | |||||||||||
Dividends from non-bank subsidiaries | 2,448 | 4,942 | 2,641 | ||||||||
Trading | 96 | 574 | 601 | ||||||||
Investments | 0 | 0 | (1) | ||||||||
Other | 38 | 53 | 10 | ||||||||
Total non-interest revenues | 2,582 | 5,569 | 3,251 | ||||||||
Interest income | 3,008 | 3,055 | 2,594 | ||||||||
Interest expense | 4,036 | 4,073 | 3,970 | ||||||||
Net interest | (1,028) | (1,018) | (1,376) | ||||||||
Net revenues | 1,554 | 4,551 | 1,875 | ||||||||
Non-interest expenses | |||||||||||
Total non-interest expenses | 126 | (195) | 214 | ||||||||
Income before income taxes | 1,428 | 4,746 | 1,661 | ||||||||
Provision for (benefit from) income taxes | (383) | (83) | (423) | ||||||||
Net income before undistributed gain subsidiaries | 1,811 | 4,829 | 2,084 | ||||||||
Undistributed gain of subsidiaries | 4,168 | 1,298 | 1,383 | ||||||||
Net income | 5,979 | 6,127 | 3,467 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | (23) | (300) | (397) | ||||||||
Change in net unrealized gains (losses) on AFS securities | (269) | (246) | 209 | ||||||||
Pensions, postretirement and other | (100) | 138 | 33 | ||||||||
Change in net DVA | (283) | 0 | 0 | ||||||||
Comprehensive income | 5,304 | 5,719 | 3,312 | ||||||||
Preferred stock dividends and other | 471 | 456 | 315 | ||||||||
Earnings applicable to Morgan Stanley common shareholders | $ 5,508 | $ 5,671 | $ 3,152 |
Parent Company (Condensed Balan
Parent Company (Condensed Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and due from banks | $ 22,017 | $ 19,827 | $ 19,827 | $ 21,381 |
Interest bearing deposits with banks | 21,364 | 34,256 | $ 34,256 | 25,603 |
Trading assets, at fair value | 262,154 | 239,505 | ||
Equity investment in subsidiaries: | ||||
Other assets | 52,125 | 51,087 | ||
Total assets | 814,949 | 787,465 | ||
Liabilities | ||||
Short-term borrowings | 941 | 2,173 | ||
Trading liabilities, at fair value | 128,194 | 128,455 | ||
Other liabilities and accrued expenses | 15,896 | 18,711 | ||
Long-term borrowings | 164,775 | 153,768 | ||
Total liabilities | 737,772 | 711,281 | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Preferred stock | 7,520 | 7,520 | ||
Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,852,481,601 and 1,920,024,027 | 20 | 20 | ||
Additional paid-in capital | 23,271 | 24,153 | ||
Retained earnings | 53,679 | 49,204 | ||
Employee stock trusts | 2,851 | 2,409 | ||
Common stock held in treasury, at cost, $0.01 par value (186,412,378 and 118,869,952 shares) | (5,797) | (4,059) | ||
Common stock issued to employee stock trusts | (2,851) | (2,409) | ||
Total Morgan Stanley shareholders' equity | 76,050 | 75,182 | ||
Total liabilities and equity | 814,949 | 787,465 | ||
Parent Company | ||||
Assets | ||||
Cash and due from banks | 119 | 5,169 | 5,068 | |
Deposits with banking subsidiaries | 3,600 | 4,311 | 4,556 | |
Interest bearing deposits with banks | 0 | 2,421 | $ 1,126 | |
Trading assets, at fair value | 139 | 354 | ||
Securities purchased under agreement to resell with affiliate | 57,906 | 47,060 | ||
Advances to subsidiaries: | ||||
Bank and bank holding company | 28,186 | 18,380 | ||
Non-bank | 95,684 | 106,192 | ||
Equity investment in subsidiaries: | ||||
Bank and bank holding company | 34,329 | 25,787 | ||
Non-bank | 31,246 | 34,927 | ||
Other assets | 4,613 | 6,259 | ||
Total assets | 255,822 | 250,860 | ||
Liabilities | ||||
Short-term borrowings | 1 | 40 | ||
Trading liabilities, at fair value | 49 | 138 | ||
Payables to subsidiaries | 26,957 | 29,220 | ||
Other liabilities and accrued expenses | 2,040 | 2,189 | ||
Long-term borrowings | 150,725 | 144,091 | ||
Total liabilities | 179,772 | 175,678 | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Preferred stock | 7,520 | 7,520 | ||
Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,852,481,601 and 1,920,024,027 | 20 | 20 | ||
Additional paid-in capital | 23,271 | 24,153 | ||
Retained earnings | 53,679 | 49,204 | ||
Employee stock trusts | 2,851 | 2,409 | ||
Accumulated other comprehensive income (loss) | (2,643) | (1,656) | ||
Common stock held in treasury, at cost, $0.01 par value (186,412,378 and 118,869,952 shares) | (5,797) | (4,059) | ||
Common stock issued to employee stock trusts | (2,851) | (2,409) | ||
Total Morgan Stanley shareholders' equity | 76,050 | 75,182 | ||
Total liabilities and equity | $ 255,822 | $ 250,860 |
Parent Company (Condensed Cash
Parent Company (Condensed Cash Flow Statements) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||||||||||
Net income | $ 1,680 | $ 1,640 | $ 1,646 | $ 1,157 | $ 936 | $ 1,049 | $ 1,831 | $ 2,463 | $ 6,123 | $ 6,279 | $ 3,667 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||||||
Other operating activities | (199) | 322 | (72) | ||||||||
Net cash provided by operating activities | 2,447 | 3,674 | 1,086 | ||||||||
Cash flows from investing activities | |||||||||||
Net cash used for investing activities | (19,508) | (19,995) | (35,324) | ||||||||
Cash flows from financing activities | |||||||||||
Net proceeds from (payments for) short-term borrowings | (1,206) | (88) | 119 | ||||||||
Proceeds from: | |||||||||||
Excess tax benefits associated with stock-based awards | 61 | 211 | 101 | ||||||||
Issuance of preferred stock, net of issuance costs | 0 | 1,493 | 2,782 | ||||||||
Issuance of long-term borrowings | 43,626 | 34,182 | 36,740 | ||||||||
Payments for: | |||||||||||
Long-term borrowings | (30,390) | (27,289) | (33,103) | ||||||||
Repurchases of common stock and employee tax withholdings | (3,933) | (2,773) | (1,458) | ||||||||
Cash dividends | (1,746) | (1,455) | (904) | ||||||||
Other financing activities | 66 | 0 | 0 | ||||||||
Net cash provided by financing activities | 7,424 | 24,365 | 23,143 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (1,065) | (945) | (1,804) | ||||||||
Net increase (decrease) in cash and cash equivalents | (10,702) | 7,099 | (12,899) | ||||||||
Cash and cash equivalents, at beginning of period | 54,083 | 46,984 | 54,083 | 46,984 | 59,883 | ||||||
Cash and cash equivalents, at end of period | 43,381 | 54,083 | 43,381 | 54,083 | 46,984 | ||||||
Cash and cash equivalents include: | |||||||||||
Cash and due from banks | 22,017 | 19,827 | 19,827 | 22,017 | 19,827 | 21,381 | |||||
Interest bearing deposits with banks | 21,364 | 34,256 | $ 34,256 | 21,364 | 34,256 | 25,603 | |||||
Cash and cash equivalents, at end of period | 43,381 | 54,083 | 43,381 | 54,083 | 46,984 | ||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash payments for interest | 2,834 | 2,672 | 3,575 | ||||||||
Cash payments for income taxes, net of refunds | 831 | 677 | 886 | ||||||||
Parent Company | |||||||||||
Cash flows from operating activities | |||||||||||
Net income | 5,979 | 6,127 | 3,467 | ||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||||||
Undistributed gain of subsidiaries | (4,168) | (1,298) | (1,383) | ||||||||
Other operating activities | 1,367 | 1,084 | 1,176 | ||||||||
Changes in assets and liabilities | (212) | (3,195) | 2,305 | ||||||||
Net cash provided by operating activities | 2,966 | 2,718 | 5,565 | ||||||||
Cash flows from investing activities | |||||||||||
Advances to and investments in subsidiaries | (2,502) | 1,364 | (7,790) | ||||||||
Securities purchased under agreement to resell with affiliate | (10,846) | (5,459) | (7,853) | ||||||||
Net cash used for investing activities | (13,348) | (4,095) | (15,643) | ||||||||
Cash flows from financing activities | |||||||||||
Net proceeds from (payments for) short-term borrowings | (39) | (655) | 189 | ||||||||
Proceeds from: | |||||||||||
Excess tax benefits associated with stock-based awards | 61 | 211 | 101 | ||||||||
Issuance of preferred stock, net of issuance costs | 0 | 1,493 | 2,782 | ||||||||
Issuance of long-term borrowings | 32,795 | 28,575 | 33,031 | ||||||||
Payments for: | |||||||||||
Long-term borrowings | (24,754) | (22,803) | (28,917) | ||||||||
Repurchases of common stock and employee tax withholdings | (3,933) | (2,773) | (1,458) | ||||||||
Cash dividends | (1,746) | (1,455) | (904) | ||||||||
Other financing activities | 66 | 0 | 0 | ||||||||
Net cash provided by financing activities | 2,450 | 2,593 | 4,824 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (250) | (65) | (208) | ||||||||
Net increase (decrease) in cash and cash equivalents | (8,182) | 1,151 | (5,462) | ||||||||
Cash and cash equivalents, at beginning of period | $ 11,901 | $ 10,750 | 11,901 | 10,750 | 16,212 | ||||||
Cash and cash equivalents, at end of period | 3,719 | 11,901 | 3,719 | 11,901 | 10,750 | ||||||
Cash and cash equivalents include: | |||||||||||
Cash and due from banks | 119 | 5,169 | 119 | 5,169 | 5,068 | ||||||
Deposits with banking subsidiaries | 3,600 | 4,311 | 3,600 | 4,311 | 4,556 | ||||||
Interest bearing deposits with banks | 0 | 2,421 | 0 | 2,421 | 1,126 | ||||||
Cash and cash equivalents, at end of period | $ 3,719 | $ 11,901 | 3,719 | 11,901 | 10,750 | ||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash payments for interest | 3,650 | 3,959 | 3,652 | ||||||||
Cash payments for income taxes, net of refunds | $ 201 | $ 255 | $ 187 |
Parent Company (Long-Term Borro
Parent Company (Long-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Long-term Borrowings | ||
Senior debt | $ 154,472 | $ 140,494 |
Subordinated debt | 10,303 | 10,404 |
Total | 164,775 | 153,768 |
Parent Company | ||
Long-term Borrowings | ||
Senior debt | 140,422 | 130,817 |
Subordinated debt | 10,303 | 13,274 |
Total | $ 150,725 | $ 144,091 |
Parent Company (Guarantees) (De
Parent Company (Guarantees) (Details) - Parent Company - USD ($) $ in Billions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instuments and Warrants | ||
Condensed Financial Statement | ||
Guarantees | $ 11.5 | $ 9.1 |
Subsidiary Lease Obligations | ||
Condensed Financial Statement | ||
Guarantees | $ 1.1 | $ 1.1 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Selected Quarterly Financial Information | |||||||||||
Total non-interest revenues | $ 8,138 | $ 7,906 | $ 7,996 | $ 6,893 | $ 6,701 | $ 7,005 | $ 9,045 | $ 9,311 | $ 30,933 | $ 32,062 | $ 32,540 |
Net interest | 883 | 1,003 | 913 | 899 | 1,037 | 762 | 698 | 596 | 3,698 | 3,093 | 1,735 |
Net revenues | 9,021 | 8,909 | 8,909 | 7,792 | 7,738 | 7,767 | 9,743 | 9,907 | 34,631 | 35,155 | 34,275 |
Total non-interest expenses | 6,775 | 6,528 | 6,426 | 6,054 | 6,299 | 6,293 | 7,016 | 7,052 | 25,783 | 26,660 | 30,684 |
Income from continuing operations before income taxes | 2,246 | 2,381 | 2,483 | 1,738 | 1,439 | 1,474 | 2,727 | 2,855 | 8,848 | 8,495 | 3,591 |
Provision for income taxes | 566 | 749 | 833 | 578 | 496 | 423 | 894 | 387 | 2,726 | 2,200 | (90) |
Income from continuing operations | 1,680 | 1,632 | 1,650 | 1,160 | 943 | 1,051 | 1,833 | 2,468 | 6,122 | 6,295 | 3,681 |
Income (loss) from discontinued operations | 0 | 8 | (4) | (3) | (7) | (2) | (2) | (5) | 1 | (16) | (14) |
Net income | 1,680 | 1,640 | 1,646 | 1,157 | 936 | 1,049 | 1,831 | 2,463 | 6,123 | 6,279 | 3,667 |
Net income applicable to nonredeemable noncontrolling interests | 14 | 43 | 64 | 23 | 28 | 31 | 24 | 69 | 144 | 152 | 200 |
Net income applicable to Morgan Stanley | 1,666 | 1,597 | 1,582 | 1,134 | 908 | 1,018 | 1,807 | 2,394 | 5,979 | 6,127 | 3,467 |
Preferred stock dividends and other | 156 | 79 | 157 | 79 | 155 | 79 | 142 | 80 | 471 | 456 | 315 |
Earnings applicable to Morgan Stanley common shareholders | $ 1,510 | $ 1,518 | $ 1,425 | $ 1,055 | $ 753 | $ 939 | $ 1,665 | $ 2,314 | $ 5,508 | $ 5,671 | $ 3,152 |
Earnings (loss) per basic common share: | |||||||||||
Income from continuing operations | $ 0.84 | $ 0.82 | $ 0.77 | $ 0.56 | $ 0.4 | $ 0.49 | $ 0.87 | $ 1.21 | $ 2.98 | $ 2.98 | $ 1.65 |
Income (loss) from discontinued operations | 0 | 0.01 | (0.01) | 0 | 0 | 0 | 0 | (0.01) | 0 | (0.01) | (0.01) |
Earnings per basic common share | 0.84 | 0.83 | 0.76 | 0.56 | 0.4 | 0.49 | 0.87 | 1.2 | 2.98 | 2.97 | 1.64 |
Earnings (loss) per diluted common share: | |||||||||||
Income from continuing operations | 0.81 | 0.8 | 0.75 | 0.55 | 0.39 | 0.48 | 0.85 | 1.18 | 2.92 | 2.91 | 1.61 |
Income (loss) from discontinued operations | 0 | 0.01 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (0.01) | (0.01) |
Earnings per diluted common share | 0.81 | 0.81 | 0.75 | 0.55 | 0.39 | 0.48 | 0.85 | 1.18 | 2.92 | 2.9 | 1.6 |
Dividends declared per common share | 0.2 | 0.2 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.1 | $ 0.7 | $ 0.55 | $ 0.35 |
Book value per common share | $ 36.99 | $ 37.11 | $ 36.29 | $ 35.34 | $ 35.24 | $ 34.97 | $ 34.52 | $ 33.8 |
Quarterly Results (Unaudited -
Quarterly Results (Unaudited - Narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Discrete income tax benefit | $ 135 | $ 564 | ||||
Losses on sales and markdowns of limited partnership investments | 60 | |||||
Severance costs | $ 155 | |||||
Start date of current common stock dividend per share declared | Jul. 20, 2016 | |||||
Institutional Securities | ||||||
Discrete income tax benefit | $ 68 | $ 564 | $ 839 | |||
Severance costs | 125 | |||||
Wealth Management | ||||||
Discrete income tax benefit | $ 1,390 | |||||
Brokerage service reporting expenses | $ 70 | |||||
Severance costs | 20 | |||||
Investment Management | ||||||
Severance costs | $ 10 |