Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MS | |
Entity Registrant Name | MORGAN STANLEY | |
Entity Central Index Key | 895,421 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,807,899,161 |
Consolidated Income Statements
Consolidated Income Statements (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||||
Investment banking | $ 1,380 | $ 1,225 | $ 4,455 | $ 3,556 |
Trading | 2,704 | 2,609 | 8,870 | 7,420 |
Investments | 167 | 87 | 495 | 179 |
Commissions and fees | 937 | 991 | 2,997 | 3,066 |
Asset management, distribution and administration fees | 3,026 | 2,686 | 8,695 | 7,943 |
Other | 200 | 308 | 628 | 631 |
Total non-interest revenues | 8,414 | 7,906 | 26,140 | 22,795 |
Interest income | 2,340 | 1,734 | 6,411 | 5,148 |
Interest expense | 1,557 | 731 | 4,106 | 2,333 |
Net interest | 783 | 1,003 | 2,305 | 2,815 |
Net revenues | 9,197 | 8,909 | 28,445 | 25,610 |
Non-interest expenses | ||||
Compensation and benefits | 4,169 | 4,097 | 12,887 | 11,795 |
Occupancy and equipment | 330 | 339 | 990 | 997 |
Brokerage, clearing and exchange fees | 522 | 491 | 1,556 | 1,440 |
Information processing and communications | 459 | 456 | 1,320 | 1,327 |
Marketing and business development | 128 | 130 | 419 | 418 |
Professional services | 534 | 489 | 1,622 | 1,550 |
Other | 573 | 526 | 1,719 | 1,481 |
Total non-interest expenses | 6,715 | 6,528 | 20,513 | 19,008 |
Income from continuing operations before income taxes | 2,482 | 2,381 | 7,932 | 6,602 |
Provision for income taxes | 697 | 749 | 2,358 | 2,160 |
Income from continuing operations | 1,785 | 1,632 | 5,574 | 4,442 |
Income (loss) from discontinued operations, net of income taxes | 6 | 8 | (21) | 1 |
Net income | 1,791 | 1,640 | 5,553 | 4,443 |
Net income applicable to noncontrolling interests | 10 | 43 | 85 | 130 |
Net income applicable to Morgan Stanley | 1,781 | 1,597 | 5,468 | 4,313 |
Preferred stock dividends and other | 93 | 79 | 353 | 314 |
Earnings applicable to Morgan Stanley common shareholders | $ 1,688 | $ 1,518 | $ 5,115 | $ 3,999 |
Earnings per basic common share | ||||
Income from continuing operations | $ 0.95 | $ 0.82 | $ 2.87 | $ 2.15 |
Income (loss) from discontinued operations | 0 | 0.01 | (0.01) | 0 |
Earnings per basic common share | 0.95 | 0.83 | 2.86 | 2.15 |
Earnings per diluted common share | ||||
Income from continuing operations | 0.93 | 0.8 | 2.81 | 2.11 |
Income (loss) from discontinued operations | 0 | 0.01 | (0.02) | 0 |
Earnings per diluted common share | 0.93 | 0.81 | 2.79 | 2.11 |
Dividends declared per common share | $ 0.25 | $ 0.2 | $ 0.65 | $ 0.5 |
Average common shares outstanding | ||||
Basic | 1,776 | 1,838 | 1,789 | 1,863 |
Diluted | 1,818 | 1,879 | 1,830 | 1,898 |
Consolidated Comprehensive Inco
Consolidated Comprehensive Income Statements (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Comprehensive Income Statements | ||||
Net income | $ 1,791 | $ 1,640 | $ 5,553 | $ 4,443 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 61 | 43 | 223 | 360 |
Change in net unrealized gains (losses) on available-for-sale securities | 26 | (99) | 218 | 439 |
Pension, postretirement and other | 0 | (1) | 4 | (5) |
Change in net debt valuation adjustment | (149) | (93) | (323) | 255 |
Total other comprehensive income (loss) | (62) | (150) | 122 | 1,049 |
Comprehensive income | 1,729 | 1,490 | 5,675 | 5,492 |
Net income applicable to noncontrolling interests | 10 | 43 | 85 | 130 |
Other comprehensive income (loss) applicable to noncontrolling interests | (6) | 15 | 23 | 151 |
Comprehensive income applicable to Morgan Stanley | $ 1,725 | $ 1,432 | $ 5,567 | $ 5,211 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 24,047 | $ 22,017 |
Interest bearing deposits with banks | 24,144 | 21,364 |
Trading assets at fair value ($158,445 and $152,548 were pledged to various parties) | 285,088 | 262,154 |
Investment securities (includes $54,954 and $63,170 at fair value) | 79,086 | 80,092 |
Securities purchased under agreements to resell (includes $101 and $302 at fair value) | 90,106 | 101,955 |
Securities borrowed | 132,892 | 125,236 |
Customer and other receivables | 54,388 | 46,460 |
Loans | ||
Held for investment (net of allowance of $245 and $274) | 91,207 | 81,704 |
Held for sale | 13,224 | 12,544 |
Goodwill | 6,590 | 6,577 |
Intangible assets (net of accumulated amortization of $2,651 and $2,421) | 2,491 | 2,721 |
Other assets | 50,430 | 52,125 |
Total assets | 853,693 | 814,949 |
Liabilities | ||
Deposits (includes $174 and $63 at fair value) | 154,639 | 155,863 |
Short-term borrowings (includes $658 and $406 at fair value) | 1,087 | 941 |
Securities sold under agreements to repurchase (includes $810 and $729 at fair value) | 53,983 | 54,628 |
Securities loaned | 15,630 | 15,844 |
Other secured financings (includes $6,514 and $5,041 at fair value) | 14,244 | 11,118 |
Customer and other payables | 198,792 | 190,513 |
Other liabilities and accrued expenses | 16,290 | 15,896 |
Long-term borrowings (includes $46,231 and $38,736 at fair value) | 191,677 | 164,775 |
Total liabilities | 773,579 | 737,772 |
Commitments and contingent liabilities | ||
Morgan Stanley shareholders' equity: | ||
Preferred stock | 8,520 | 7,520 |
Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,812,472,419 and 1,852,481,601 | 20 | 20 |
Additional paid-in capital | 23,389 | 23,271 |
Retained earnings | 57,554 | 53,679 |
Employee stock trusts | 2,899 | 2,851 |
Accumulated other comprehensive income (loss) | (2,544) | (2,643) |
Common stock held in treasury at cost, $0.01 par value (226,421,560 and 186,412,378 shares) | (7,961) | (5,797) |
Common stock issued to employee stock trusts | (2,899) | (2,851) |
Total Morgan Stanley shareholders' equity | 78,978 | 76,050 |
Noncontrolling interests | 1,136 | 1,127 |
Total equity | 80,114 | 77,177 |
Total liabilities and equity | $ 853,693 | $ 814,949 |
Consolidated Balance Sheets (U5
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheets | ||
Trading assets pledged to various parties | $ 158,445 | $ 152,548 |
Investment securities at fair value | 54,954 | 63,170 |
Securities purchased under agreement to resell at fair value | 101 | 302 |
Allowance for loans held for investment | 245 | 274 |
Intangible assets, accumulated amortization | 2,651 | 2,421 |
Deposits at fair value | 174 | 63 |
Short-term borrowings at fair value | 658 | 406 |
Securities sold under agreement to repurchase at fair value | 810 | 729 |
Other secured financings at fair value | 6,514 | 5,041 |
Long-term borrowings at fair value | $ 46,231 | $ 38,736 |
Common stock par value (per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 3,500,000,000 | 3,500,000,000 |
Common stock, shares issued | 2,038,893,979 | 2,038,893,979 |
Common stock, shares outstanding | 1,812,472,419 | 1,852,481,601 |
Common stock held in treasury, shares | 226,421,560 | 186,412,378 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Total Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Employee Stock Trusts | Accumulated Other Comprehensive Income (Loss) | Common Stock Held in Treasury at Cost | Common Stock Issued to Employee Stock Trusts | Non-controlling Interests | |
Balance at at Dec. 31, 2015 | $ 76,184 | $ 7,520 | $ 20 | $ 24,153 | $ 49,204 | $ 2,409 | $ (1,656) | $ (4,059) | $ (2,409) | $ 1,002 | |
Cumulative adjustment for accounting change related to DVA | [1] | 0 | 312 | (312) | |||||||
Net adjustment for accounting change related to consolidation | [2] | 106 | 106 | ||||||||
Net income applicable to Morgan Stanley | 4,313 | 4,313 | |||||||||
Net income applicable to noncontrolling interests | 130 | 130 | |||||||||
Dividends | (1,284) | (1,284) | |||||||||
Shares issued under employee plans and related tax effects | 938 | (1,168) | 430 | 2,106 | (430) | ||||||
Repurchases of common stock and employee tax withholdings | (2,908) | (2,908) | |||||||||
Net change in Accumulated other comprehensive income (loss) | 1,049 | 898 | 151 | ||||||||
Other net increases (decreases) | (66) | 10 | (76) | ||||||||
Balance at at Sep. 30, 2016 | 78,462 | 7,520 | 20 | 22,995 | 52,545 | 2,839 | (1,070) | (4,861) | (2,839) | 1,313 | |
Balance at at Dec. 31, 2016 | 77,177 | 7,520 | 20 | 23,271 | 53,679 | 2,851 | (2,643) | (5,797) | (2,851) | 1,127 | |
Cumulative adjustment for accounting changes | 10 | 45 | (35) | ||||||||
Net income applicable to Morgan Stanley | 5,468 | 5,468 | |||||||||
Net income applicable to noncontrolling interests | 85 | 85 | |||||||||
Dividends | (1,558) | (1,558) | |||||||||
Shares issued under employee plans | 923 | 79 | 48 | 844 | (48) | ||||||
Repurchases of common stock and employee tax withholdings | (3,008) | (3,008) | |||||||||
Net change in Accumulated other comprehensive income (loss) | 122 | 99 | 23 | ||||||||
Issuance of preferred stock | 994 | 1,000 | (6) | ||||||||
Other net increases (decreases) | (99) | (99) | |||||||||
Balance at at Sep. 30, 2017 | $ 80,114 | $ 8,520 | $ 20 | $ 23,389 | $ 57,554 | $ 2,899 | $ (2,544) | $ (7,961) | $ (2,899) | $ 1,136 | |
[1] | Debt valuation adjustment (“DVA”) represent s the change in the fair value resulting from fluctuations in the Firm’s credit spreads and other credit factors relate d to liabilities carried at fair value under the fair value option , primarily related to certain Long-term and Short-term borrowings. In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Ass ets and Financial Liabilities , a cumulative catch - up adjustment was recorded as of January 1, 2016 to move the cumulative unrealized DVA amount, net of noncontrolling interest s and tax, related to outstanding liabilities under the fair value option electio n from Retained earnings into Accumulated other comprehensive i ncome (loss) (“AOCI”). See Note 2 to the consolidated financial statements in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”) and Note 14 for further information. | ||||||||||
[2] | In accordance with the accounting update Amendments to the Consolidation Analysis , a net adjustment was recorded as of January 1, 2016 to both consolidate and deconsolidate certain entities under the new guidance. See Note 2 to the consolidated financial statements in th e 2016 Form 10-K for further information. |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statements (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net income | $ 5,553 | $ 4,443 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
(Income) loss from equity method investments | 0 | 39 |
Compensation payable in common stock and options | 775 | 794 |
Depreciation and amortization | 1,340 | 1,357 |
Net gain on sale of available-for-sale securities | (27) | (127) |
Impairment charges | 13 | 102 |
Provision for credit losses on lending activities | 32 | 138 |
Other operating adjustments | (48) | (36) |
Changes in assets and liabilities: | ||
Trading assets, net of Trading liabilities | (18,599) | (20,509) |
Securities borrowed | (7,656) | 16,136 |
Securities loaned | (214) | (2,843) |
Customer and other receivables and other assets | (6,682) | (2,800) |
Customer and other payables and other liabilities | 8,196 | 3,849 |
Securities purchased under agreements to resell | 11,849 | (2,922) |
Securities sold under agreements to repurchase | (645) | 10,244 |
Net cash provided by (used for) operating activities | (6,113) | 7,865 |
Proceeds from (payments for): | ||
Other assets-Premises, equipment and software, net | (1,177) | (941) |
Changes in loans, net | (9,350) | (7,709) |
Investment securities: | ||
Purchases | (19,713) | (41,230) |
Proceeds from sales | 16,111 | 28,960 |
Proceeds from paydowns and maturities | 5,378 | 5,956 |
Other investing activities | (77) | (24) |
Net cash provided by (used for) investing activities | (8,828) | (14,988) |
Net proceeds from (payments for): | ||
Short-term borrowings | 64 | (1,233) |
Noncontrolling interests | (43) | (47) |
Other secured financings | 1,400 | (278) |
Deposits | (1,224) | (4,191) |
Proceeds from: | ||
Derivatives financing activities | 73 | 0 |
Issuance of preferred stock, net of issuance costs | 994 | 0 |
Issuance of long-term borrowings | 45,334 | 27,528 |
Payments for: | ||
Long-term borrowings | (24,480) | (22,902) |
Derivatives financing activities | (73) | (120) |
Repurchases of common stock and employee tax withholdings | (3,008) | (2,908) |
Cash dividends | (1,562) | (1,311) |
Other financing activities | 58 | 0 |
Net cash provided by (used for) financing activities | 17,533 | (5,462) |
Effect of exchange rate changes on cash and cash equivalents | 2,218 | 1,054 |
Net increase (decrease) in cash and cash equivalents | 4,810 | (11,531) |
Cash and cash equivalents, at beginning of period | 43,381 | 54,083 |
Cash and cash equivalents, at end of period | 48,191 | 42,552 |
Cash and cash equivalents include: | ||
Cash and due from banks | 24,047 | 26,899 |
Interest bearing deposits with banks | 24,144 | 15,653 |
Cash and cash equivalents, at end of period | 48,191 | 42,552 |
Supplemental Disclosure of Cash Flow Information | ||
Cash payments for interest | 3,422 | 1,784 |
Cash payments for income taxes, net of refunds | $ 967 | $ 504 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Introduction and Basis of Presentation | |
Introduction and Basis of Presentation | 1. Introduction and Basis of Presentation The Firm Morgan Stanley, a financial holding company, is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. A description of the clients and principal products and services of each of the Firm ’s business segments is as follo ws: Institutional Securities provides investment banking, sales and trading, lending and other services to corporations, governments, financial institutions, and high to ultra-high net worth clients. Investment banking services consist of capital raising and financial advisory services, including services relating to the underwriting of debt, equity and other securities, as well as advice on mergers and acquisitions, restructurings, real estate and project finance. Sales and trading services include sales , financing and market-making activities in equity and fixed income products, including prime brokerage services, global macro, credit and commodities products. Lending services include originating and/or purchasing corporate loans, commercial and resident ial mortgage lending, asset-backed lending, and financing extended to equities and commodities customers and municipalities. Other services include investment and research activities. Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses/institutions covering brokerage and investment advisory services, financial and wealth planning services, annuity and insurance products, credit and other lending products, banking and retirement plan services. Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products include equity, fixed income, liquidity and alternative/other products. Institutional clients include defined benefit/defined contribution plans , foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are serviced through intermediaries, including affiliated and non-affiliated distributors. Basis of Financial Information The unaud ited consolidated financial statements (“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 the v aluations 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 financial statements and rel ated disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. Intercompany balances and transactions have been elimina ted. Certain reclassifications have been made to prior periods to conform to the current presentation. The accompanying financial statements should be read in conjunction with the Firm’s consolidated financial statements and notes thereto included in the 2016 Form 10-K. Certain footnote disclosures included in the 2016 Form 10-K have been condensed or omitted from these financial statements as they are not required for interim reporting under U.S. GAAP. The financial statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the interim period. The results of operations for interim periods are not necessarily indicative of results for the entire year. Conso lidation The financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain variable interest entities (“VIE”) (see Note 12). For con solidated subsidiaries that are less than wholly owned, the third-party holdings of equity interests are referred to as noncontrolling interests. The net income attributable to noncontrolling interests for such subsidiaries is presented as Net income appli cable to noncontrolling interests in the consolidated income statements (“income statements”). The portion of shareholders’ equity that is attributable to noncontrolling interests for such subsidiaries is presented as noncontrolling interests, a component of total equity, in the consolidated balance sheets (“balance sheets”). For a discussion of the Firm’s involvement with VIEs and its significant regulated U.S. and international subsidiaries, see Notes 1 and 2 to the consolidated financial statements in the 2016 Form 10-K. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies For a detailed discussion about the Firm’s significant accounting policies, see Note 2 to the consolidated financial statements in the 2016 Form 10-K. During the nine months ended September 30, 2017 (“current year period”), other than the following, there were no significant updates made to the Firm’s significant accounting policies. Accounting Standards Adopted The Firm adopted the following accounting update on January 1, 2017. Improvements to Employee Share-Based Payment Accounting . This accounting update simplifies the accounting for employee share-based payments, including the recognition of forfeitures, the classification of income tax consequences, and the classification within the consolidated cash flow statem ents (“cash flow statements”) . Beginning in 2017, the income tax consequences related to share-based payments are required to be recognized in Provision for income taxes in the income statements upon the conversion of employee share-based awards instead of additional paid-in capital. The impact of the income tax consequences upon conversion of the awards may be either a benefit or a provision. Conversion of employee share-based awards to Firm shares will primarily occur in the first quarter of each year. The impact of recognizing excess tax benefits upon conversion of awards in the quarter in which the accounting update was adopted (three months ended March 31, 2017) was a $ 112 million benefit to Provision for income taxes. The classification of cash flows from excess tax benefits was moved from the financing section to the operating section of the cash flow statements, and was applied on a retrospective basis. In addition, this accounting update permits an entity to elect whether to continue to estimate t he total forfeitures, or to account for forfeitures on an actual basis as they occur. The Firm has elected to account for forfeitures on an actual basis as they occur. This change is required to be applied using a modified retrospective approach, and upon adoption, the Firm recorded a cumulative catch-up a djustment, decreasing Retained e arnings by approximately $ 30 million net of tax, increasing A dditional paid-in capital by approximately $ 45 million and increasing deferred tax assets by approximately $ 15 m illion . Goodwill The Firm completed its annual goodwill impairment testing as of July 1, 2017. The Firm’s impairment testing 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. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures | |
Fair Value Disclosures | 3. Fair Value s Fair Value Measurement Assets and Liabilities Measured at Fair Value on a Recurring Basis At September 30, 2017 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at Fair Value Trading assets: U.S. Treasury and agency securities $ 27,538 $ 23,186 $ — $ — $ 50,724 Other sovereign government obligations 2 25,428 6,201 104 — 31,733 Corporate and other debt: State and municipal securities — 2,123 10 — 2,133 MABS — 2,399 274 — 2,673 Corporate bonds — 14,164 419 — 14,583 CDO — 313 76 — 389 Loans and lending commitments 3 — 3,423 4,865 — 8,288 Other debt — 1,041 193 — 1,234 Total corporate and other debt — 23,463 5,837 — 29,300 Corporate equities 4 137,028 425 296 — 137,749 Derivative and other contracts: Interest rate 581 183,561 1,658 — 185,800 Credit — 8,527 377 — 8,904 Foreign exchange 93 53,842 47 — 53,982 Equity 1,056 44,986 3,402 — 49,444 Commodity and other 1,240 4,929 4,107 — 10,276 Netting 1 (2,896) (225,857) (1,853) (46,425) (277,031) Total derivative and other contracts 74 69,988 7,738 (46,425) 31,375 Investments 5 316 257 925 — 1,498 Physical commodities — 157 — — 157 Total trading assets 5 190,384 123,677 14,900 (46,425) 282,536 Investment securities— AFS 25,022 29,932 — — 54,954 Securities purchased under agreements to resell — 101 — — 101 Intangible assets — 3 — — 3 Total assets at fair value $ 215,406 $ 153,713 $ 14,900 $ (46,425) $ 337,594 At September 30, 2017 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at Fair Value Deposits $ — $ 68 $ 106 $ — $ 174 Short-term borrowings — 658 — — 658 Trading liabilities: US Treasury and agency securities 14,574 61 — — 14,635 Other sovereign government obligations 2 24,351 1,432 — — 25,783 Corporate and other debt: Corporate bonds — 7,044 6 — 7,050 Other debt — 342 2 — 344 Total corporate and other debt — 7,386 8 — 7,394 Corporate equities 4 54,778 157 51 — 54,986 Derivative and other contracts: Interest rate 478 165,399 582 — 166,459 Credit — 9,353 680 — 10,033 Foreign exchange 52 54,198 125 — 54,375 Equity 1,252 47,603 2,171 — 51,026 Commodity and other 1,233 3,879 2,573 — 7,685 Netting 1 (2,896) (225,857) (1,853) (34,533) (265,139) Total derivative and other contracts 119 54,575 4,278 (34,533) 24,439 Total trading liabilities 93,822 63,611 4,337 (34,533) 127,237 Securities sold under agreements to repurchase — 661 149 — 810 Other secured financings — 6,264 250 — 6,514 Long-term borrowings 35 43,593 2,603 — 46,231 Total liabilities at fair value $ 93,857 $ 114,855 $ 7,445 $ (34,533) $ 181,624 At December 31, 2016 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at Fair Value Trading assets: U.S. Treasury 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 MABS — 1,691 217 — 1,908 Corporate bonds — 11,051 232 — 11,283 CDO — 602 63 — 665 Loans and lending commitments 3 — 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 4 131,574 352 446 — 132,372 Derivative and other contracts: Interest rate 1,131 300,406 1,373 — 302,910 Credit — 11,727 502 — 12,229 Foreign exchange 231 74,921 13 — 75,165 Equity 1,185 35,736 1,708 — 38,629 Commodity and other 2,808 6,734 3,977 — 13,519 Netting 1 (4,378) (353,543) (1,944) (51,381) (411,246) Total derivative and other contracts 977 75,981 5,629 (51,381) 31,206 Investments 5 237 197 958 — 1,392 Physical commodities — 112 — — 112 Total trading assets 5 174,372 123,170 13,177 (51,381) 259,338 Investment securities— AFS 29,120 34,050 — — 63,170 Securities purchased under agreements to resell — 302 — — 302 Intangible assets — 3 — — 3 Total assets at fair value $ 203,492 $ 157,525 $ 13,177 $ (51,381) $ 322,813 At December 31, 2016 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at Fair Value Deposits $ — $ 21 $ 42 $ — $ 63 Short-term borrowings — 404 2 — 406 Trading liabilities: US Treasury and agency securities 11,636 61 — — 11,697 Other sovereign government obligations 20,658 2,430 — — 23,088 Corporate and other debt: Corporate bonds — 5,572 34 — 5,606 Other debt — 549 2 — 551 Total corporate and other debt — 6,121 36 — 6,157 Corporate equities 4 57,847 54 35 — 57,936 Derivative and other contracts: Interest rate 1,244 285,379 953 — 287,576 Credit — 12,550 875 — 13,425 Foreign exchange 17 75,510 56 — 75,583 Equity 1,162 37,828 1,524 — 40,514 Commodity and other 2,663 6,845 2,377 — 11,885 Netting 1 (4,378) (353,543) (1,944) (39,803) (399,668) Total derivative and other contracts 708 64,569 3,841 (39,803) 29,315 Physical commodities — 1 — — 1 Total trading liabilities 90,849 73,236 3,912 (39,803) 128,194 Securities sold under agreements to repurchase — 580 149 — 729 Other secured financings — 4,607 434 — 5,041 Long-term borrowings 47 36,677 2,012 — 38,736 Total liabilities at fair value $ 90,896 $ 115,525 $ 6,551 $ (39,803) $ 173,169 MABS — Mortgage- and asset-backed securities AFS—Available for sale CDO — Collateralized debt obligations, including collateralized loan obligations For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Netting.” P ositions classified within the same level that are with the same counterparty are netted within that level. For further information on derivative instruments and hedging activities, see Note 4. During the current year period , the Firm transferred from Level 2 to Level 1 $ 1.3 billion and $ 1.8 billion of Tra ding assets — Other sovereign government obligations and Trading liabilities — Other sovereign government obligations, respectively, due to increased market activity in these instruments. For further breakdown by type , see the following Loans and Lending Commitments a t Fair Value table. For trading purposes, the Firm holds or sells short equity securities issued by entities in diverse industries and of varying sizes. Amounts exclude certain investments that are measured at fair value using the net asset value (“ NAV ”) per share, which are not classified in the fair value hierarchy. For additional disclosure about such investments, see “Fair Value of Investments Measured at N AV ” herein . Loans and Lending Commitments at Fair Value $ in millions At September 30, 2017 At December 31, 2016 Corporate $ 6,441 $ 7,217 Residential real estate 690 966 Wholesale real estate 1,157 519 Total $ 8,288 $ 8,702 Unsettled Fair Value of Futures Contracts 1 $ in millions At September 30, 2017 At December 31, 2016 Long Customer and other receivables $ 977 $ 784 Short Customer and other payables $ 140 $ 174 These contracts are primarily Level 1, actively traded , valued based on quoted prices from the exchange and are excluded from the previous recurring fair value tables . For a description of the valuation techniques applied to the Firm’s major categories of assets and liabilities measured at fair value on a recurring basis, see Note 3 to the consolidated financial statements in the 2016 Form 10-K. During the current year period, there were no significant updates made to the Firm’s valuation techniques . Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basi s The following tables present additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2017 (“current quarter”), the three months ended September 30, 2016 (“prior year quarter”), the current year period and the nine months ended September 30, 2016 (“prior year period”) . Level 3 instruments may be hedged with instruments cla ssif ied in Level 1 and Level 2. As a result, the realized and unrealized gains (losses) fo r assets and liabilities within the Level 3 category presented in the following tables do not reflect the related realized and unrealized gains (losses) on hedging instru ments that have been classified by the Firm within the Level 1 and/or Level 2 categories. Additionally, both observable and unobservable inputs may be used to determine the fair value of positions that the Firm has classified within the Level 3 category. As a result, the unrealized gains (losses) during the period for assets and liabilities within the Level 3 category presented in the following tables herein may include changes in fair value during the period that were attributable to both observable and unobservable inputs . Total realized and unrealized gains (losses) are primarily included in Trading revenues in the income statements . Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Current Quarter $ in millions Beginning Balance at June 30, 2017 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at September 30, 2017 Unrealized Gains (Losses) at September 30, 2017 Assets at Fair Value Trading assets: Other sovereign government obligations $ 100 $ 2 $ 86 $ (82) $ — $ (2) $ 104 $ 1 Corporate and other debt: State and municipal securities 9 — 4 (3) — — 10 — MABS 264 4 52 (54) — 8 274 1 Corporate bonds 449 29 120 (144) — (35) 419 27 CDO 58 7 20 (15) (4) 10 76 6 Loans and lending commitments 4,864 25 1,772 (1,431) (236) (129) 4,865 17 Other debt 186 5 80 (82) — 4 193 1 Total corporate and other debt 5,830 70 2,048 (1,729) (240) (142) 5,837 52 Corporate equities 500 (9) 24 (268) — 49 296 — Net derivative and other contracts 3 : Interest rate 970 105 13 (29) 33 (16) 1,076 92 Credit (305) (33) 7 (9) 35 2 (303) (33) Foreign exchange 2 (59) 9 — 17 (47) (78) (50) Equity 1,093 114 60 (77) 79 (38) 1,231 110 Commodity and other 1,509 158 1 (1) (112) (21) 1,534 45 Total net derivative and other contracts 3,269 285 90 (116) 52 (120) 3,460 164 Investments 946 (4) 13 (17) (16) 3 925 (5) Liabilities at Fair Value Deposits $ 79 $ (1) $ — $ 32 $ — $ (6) $ 106 $ (1) Trading liabilities: Corporate and other debt: Corporate bonds 13 (2) (18) 9 — — 6 (1) Other debt 2 — — — — — 2 — Total corporate and other debt 15 (2) (18) 9 — — 8 (1) Corporate equities 28 1 (10) 24 — 10 51 2 Securities sold under agreements to repurchase 148 (1) — — — — 149 (1) Other secured financings 244 (5) — 2 (1) — 250 (5) Long-term borrowings 2,646 (53) — 679 (49) (726) 2,603 (47) Loan originations and consolidations of VIEs are included in purchases and deconsolidations of VIEs are included in settlements. Amounts related to entering into Net derivatives and other contracts, Deposits, Short-term borrowings, Other secured financings and Long-term borrowings primarily represent issuances. Amounts for other line items primarily represent sales. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Prior Year Quarter $ in millions Beginning Balance at June 30, 2016 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at September 30, 2016 Unrealized Gains (Losses) at September 30, 2016 Assets at Fair Value Trading assets: U.S. Treasury and agency securities $ 20 $ — $ — $ (18) $ — $ 6 $ 8 $ — Other sovereign government obligations 2 — 6 (1) — 5 12 — Corporate and other debt: State and municipal securities 10 1 — (7) — — 4 — MABS 355 (7) 74 (156) — (2) 264 (15) Corporate bonds 276 (55) 20 (23) — (19) 199 (55) CDO 109 6 9 (38) — (1) 85 10 Loans and lending commitments 5,418 (12) 501 (206) (733) (813) 4,155 (12) Other debt 528 — 191 (212) — (261) 246 — Total corporate and other debt 6,696 (67) 795 (642) (733) (1,096) 4,953 (72) Corporate equities 572 (28) 43 (36) — (214) 337 (26) Net derivative and other contracts 3 : Interest rate (235) (60) 3 (15) 11 337 41 (45) Credit (1,114) 147 — — 2 82 (883) 147 Foreign exchange (1) (27) — — (42) (37) (107) (27) Equity (1,473) 220 31 (39) 567 834 140 239 Commodity and other 1,287 269 — (14) (170) (78) 1,294 104 Total net derivative and other contracts (1,536) 549 34 (68) 368 1,138 485 418 Investments 974 (41) 2 (8) (27) 36 936 (36) Liabilities at Fair Value Deposits $ 30 $ 1 $ — $ 5 $ — $ (3) $ 31 $ 1 Short-term borrowings — — — — — 2 2 — Trading liabilities: Corporate and other debt: Corporate bonds 6 (1) (3) 2 — 7 13 (1) Other debt 3 — — — — — 3 — Total corporate and other debt 9 (1) (3) 2 — 7 16 (1) Corporate equities 26 2 (2) 3 — (5) 20 — Securities sold under agreements to repurchase 150 1 — — — — 149 2 Other secured financings 441 (11) — — (2) — 450 (11) Long-term borrowings 1,929 (88) — 193 (147) (21) 2,042 (87) Loan originations and consolidations of VIEs are included in purchases and deconsolidations of VIEs are included in settlements. Amounts related to entering into Net derivatives and other contracts, Deposits, Short-term borrowings, Other secured financings and Long-term borrowings primarily represent issuances. Amounts for other line items primarily represent sales. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Current Year Period $ in millions Beginning Balance at December 31, 2016 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at September 30, 2017 Unrealized Gains (Losses) at September 30, 2017 Assets at Fair Value Trading assets: U.S. Treasury and agency securities $ 74 $ (1) $ — $ (240) $ — $ 167 $ — $ — Other sovereign government obligations 6 — 104 (5) — (1) 104 — Corporate and other debt: State and municipal securities 250 3 6 (81) — (168) 10 — MABS 217 49 120 (120) (16) 24 274 13 Corporate bonds 232 30 310 (205) — 52 419 (6) CDO 63 6 33 (18) (7) (1) 76 3 Loans and lending commitments 5,122 88 2,470 (1,927) (964) 76 4,865 85 Other debt 180 31 94 (160) — 48 193 6 Total corporate and other debt 6,064 207 3,033 (2,511) (987) 31 5,837 101 Corporate equities 446 8 74 (604) — 372 296 3 Net derivative and other contracts 3 : Interest rate 420 137 36 (42) 658 (133) 1,076 146 Credit (373) (18) 6 (9) 96 (5) (303) (34) Foreign exchange (43) (92) 9 — 48 — (78) (72) Equity 184 168 816 (231) 209 85 1,231 277 Commodity and other 1,600 523 13 (21) (431) (150) 1,534 88 Total net derivative and other contracts 1,788 718 880 (303) 580 (203) 3,460 405 Investments 958 16 96 (44) (78) (23) 925 10 Liabilities at Fair Value Deposits $ 42 $ (2) $ — $ 62 $ — $ — $ 106 $ (2) Short-term borrowings 2 — — — (2) — — — Trading liabilities: Corporate and other debt: Corporate bonds 34 (1) (54) 98 — (73) 6 — Other debt 2 — (1) 1 — — 2 — Total corporate and other debt 36 (1) (55) 99 — (73) 8 — Corporate equities 35 — (69) 27 — 58 51 (1) Securities sold under agreements to repurchase 149 — — — — — 149 1 Other secured financings 434 (28) — 54 (223) (43) 250 (21) Long-term borrowings 2,012 (142) — 1,418 (326) (643) 2,603 (136) Loan originations and consolidations of VIEs are included in purchases and deconsolidations of VIEs are included in settlements. Amounts related to entering into Net derivatives and other contracts, Deposits, Short-term borrowings, Other secured financings and Long-term borrowings primarily represent issuances. Amounts for other line items primarily represent sales. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Prior Year Period $ in millions Beginning Balance at December 31, 2015 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at September 30, 2016 Unrealized Gains (Losses) at September 30, 2016 Assets at Fair Value Trading assets: U.S. Treasury and agency securities $ — $ — $ 3 $ (37) $ — $ 42 $ 8 $ — Other sovereign government obligations 4 — 10 (6) — 4 12 — Corporate and other debt: State and municipal securities 19 — — (16) — 1 4 — MABS 438 (35) 88 (314) — 87 264 (31) Corporate bonds 267 (4) 146 (276) — 66 199 (17) CDO 430 9 13 (295) — (72) 85 16 Loans and lending commitments 5,936 (65) 921 (860) (986) (791) 4,155 (51) Other debt 448 1 92 (35) — (260) 246 65 Total corporate and other debt 7,538 (94) 1,260 (1,796) (986) (969) 4,953 (18) Corporate equities 434 (57) 62 (324) — 222 337 (80) Net derivative and other contracts 3 : Interest rate 260 257 3 (15) (59) (405) 41 (156) Credit (844) (255) 1 — 155 60 (883) (277) Foreign exchange 141 (104) — — (224) 80 (107) (102) Equity (2,031) 334 816 (168) 1,083 106 140 172 Commodity and other 1,050 377 33 (20) (312) 166 1,294 162 Total net derivative and other contracts (1,424) 609 853 (203) 643 7 485 (201) Investments 707 (60) 374 (37) (67) 19 936 (63) Intangible assets 5 — — — — (5) — — Liabilities at Fair Value Deposits $ 19 $ (1) $ — $ 15 $ — $ (4) $ 31 $ (1) Short-term borrowings 1 — — — (1) 2 2 — Trading liabilities: Corporate and other debt: Corporate bonds — (3) (7) 32 — (15) 13 (3) Other debt 4 — (1) — — — 3 — Total corporate and other debt 4 (3) (8) 32 — (15) 16 (3) Corporate equities 18 4 (37) 14 — 29 20 32 Securities sold under agreements to repurchase 151 2 — — — — 149 3 Other secured financings 461 (42) — 69 (44) (78) 450 (42) Long-term borrowings 1,987 (103) — 366 (262) (152) 2,042 91 Loan originations and consolidations of VIEs are included in purchases and deconsolidations of VIEs are included in settlements. Amounts related to entering into Net derivatives and other contracts, Deposits, Short-term borrowings, Other secured financings and Long-term borrowings primarily represent issuances. Amounts for other line items primarily represent sales. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Significant Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements The following disclosures provide information on the valuation techniques, significant unobservable inputs, and their ranges and averages for each major category of assets and liabilities measured at fair value on a recurring and nonrecurring basis with a significant Level 3 balance. The level of aggregation and breadth of products cause the range of inputs to be wide and not evenly distributed across the inventory. Further, the range of unobservable inputs may differ across firms in the financial services industry because of diversity in the types of products included in each firm’s inventory. For qualitative information on the sensitivity of the fair value measurements to changes in the significant unobservable inputs , see Note 3 to the consolidated financial statements in the 2016 Form 10-K . There are no predictable relationships between multiple significant unobservable inputs attributable to a given valuation technique. A single amount is dis closed when there is no significant difference between the minimum, maximum and average (weighted average or simple average / median ). Valuation Techniques and Sensitivity of Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Predominant Valuation Techniques/ Significant Unobservable Inputs Range (Weighted Average or Simple Average/Median) 1 $ in millions At September 30, 2017 At December 31, 2016 Recurring Fair Value Measurement Assets at Fair Value U.S. Treasury and agency securities ( $— and $74) Comparable pricing: Comparable bond price N/A 96 to 105 points (102 points) Predominant Valuation Techniques/ Significant Unobservable Inputs Range (Weighted Average or Simple Average/Median) 1 $ in millions At September 30, 2017 At December 31, 2016 Other sovereign government obligations ($104 and $6) Comparable pricing: Comparable bond price 86 to 97 points (88 points) N/M State and municipal securities ($10 and $250) Comparable pricing: Comparable bond price N/M 53 to 100 points (91 points) MABS ($274 and $217) Comparable pricing: Comparable bond price 0 to 100 points (33 points) 0 to 86 points (27 points) Corporate bonds ($419 and $232) Comparable pricing : Comparable bond price 3 to 132 points (60 points) 3 to 130 points (70 points) Discounted cash flow: Recovery rate 5% to 33% (25%) N/A Option model: At the money volatility 16% to 35% (25%) 23% to 33% (30%) CDO ($76 and $63) Comparable pricing : Comparable bond price 15 to 101 points (66 points) 0 to 103 points (50 points) Correlation model: Credit correlation 43% to 54% (51%) N/M Loans and lending commitments ($4,865 and $5,122) Corporate loan model: Credit spread N/M 402 to 672 bps (557 bps) Expected recovery: Asset coverage 37% to 100% (83%) 43% to 100% (83%) Margin loan model : Discount rate 1% to 3% (1%) 2% to 8% (3%) Volatility skew 8% to 43% (19%) 21% to 63% (33%) Comparable pricing: Comparable loan price 46 to 102 points (92 points) 45 to 100 points (84 points) Discounted cash flow: Implied weighted average cost of capital N/M 5% Capitalization rate N/M 4% to 10% (4%) Other debt ($193 and $180) Option model: At the money volatility 17% to 52% (47%) 16% to 52% (52%) Discounted cash flow: Discount rate 7% to 18% (9%) 7% to 12% (11%) Comparable pricing: Comparable loan price 1 to 5 points (2 points) 1 to 74 points (23 points) Corporate equities ($296 and $446) Comparable pricing: Comparable equity price 100% 100% Net derivative and other contracts 2 : Interest rate ($1,076 and $420) Option model : Interest rate - Foreign exchange correlation N/M 28% to 58% (44% / 43%) Interest rate volatility skew 29% to 106% (44% / 44%) 19% to 117% (55% / 56%) Interest rate quanto correlation N/M -17% to 31% (1% / -5%) Interest rate curve correlation 30% to 96% (75% / 78%) 28% to 96% (68% / 72%) Inflation volatility 24% to 64% (45% / 43%) 23% to 55% (40% / 39%) Interest rate curve 1% to 2% (1% / 1%) N/M Credit ($(303) and $(373)) Comparable pricing: Cash synthetic basis 14 to 15 points (14 points) 5 to 12 points (11 points) Comparable bond price 0 to 70 points (25 points) 0 to 70 points (23 points) Correlation model : Credit correlation 29% to 99% (51%) 32% to 70% (45%) Foreign exchange 3 ($(78) and $(43)) Option model: Interest rate - Foreign exchange correlation 27% to 59% (44% / 44%) 28% to 58% (44% / 43%) Interest rate volatility skew N/M 34% to 117% (55% / 56%) Contingency probability 95% N/M Interest rate quanto correlation N/M -17% to 31% (1% / -5%) Equity 3 ($1,231 and $184) Option model: At the money volatility 5% to 55% (36%) 7% to 66% (33%) Volatility skew -3% to 0% (-1%) -4% to 0% (-1%) Equity - Equity correlation 5% to 99% (73%) 25% to 99% (73%) Equity - Foreign exchange correlation -70% to 30% (-28%) -63% to 30% (-43%) Equity - Interest rate correlation -7% to 52% (17% / 21%) -8% to 52% (12% / 4%) Commodity and other($1,534 and $1,600) Option model: Forward power price $6 to $84 ($30) per MWh $7 to $90 ($32) per MWh Commodity volatility 5% to 56% (16%) 6% to 130% (18%) Cross-commodity correlation 5% to 99% (92%) 5% to 99% (92%) Predominant Valuation Techniques/ Significant Unobservable Inputs Range (Weighted Average or Simple Average/Median) 1 $ in millions At September 30, 2017 At December 31, 2016 Investments ($925 and $958) Discounted cash flow: Implied weighted average cost of capital N/M 10% Exit multiple N/M 10 to 24 times (11 times) Market approach: EBITDA multiple 6 to 24 times (12 times) 6 to 24 times (12 times) Comparable pricing : Comparable equity price 45% to 100% (90%) 75% to 100% (93%) Liabilities at Fair Value Deposits ($106 and $42) Option model: At the money volatility 15% to 37% (32%) N/M Volatility skew -1% to 0% (-1%) N/M Securities sold under agreements to repurchase ($149 and $149) Discounted cash flow: Funding spread 145 to 154 bps (151 bps) 118 to 127 bps (121 bps) Other secured financings ($250 and $434) Discounted cash flow: Funding spread 38 to 81 bps (60 bps) 63 to 92 bps (78 bps) Option model: Volatility skew -1% -1% At the money volatility 10% to 40% (25%) N/M Comparable pricing: Comparable bond price 14 to 58 points (30 points) N/M Discounted cash flow : Discount rate N/M 4% Long-term borrowings ($2,603 and $2,012) Option model : At the money volatility 5% to 35% (21%) 7% to 42% (30%) Volatility skew -3% to 0% (-1%) -2% to 0% (-1%) Equity - Equity correlation 36% to 98% (88%) 35% to 99% (84%) Equity - Foreign exchange correlation -51% to 10% (-32%) -63% to 13% (-40%) Option model : Interest rate volatility skew 29% to 106% (44% / 44%) 25% Equity volatility discount 8% to 11% (9% / 8%) 7% to 11% (10% / 10%) Interest rate - Foreign exchange correlation 21% to 22% (23% / 22%) N/M Comparable pricing: Comparable equity price 100% N/M Nonrecurring Fair Value Measurement Assets at Fair Value Loans ($1,448 and $2,443) Corporate loan model: Credit spread 86 to 563 bps (229 bps) 90 to 487 bps (208 bps) Expected recovery: Asset coverage 73% to 95% (84%) 73% to 99% (97%) bps—Basis points . One basis point equals 1/100 th of 1%. Point s— Percentage of par MWh — Megawatt hours EBITDA— Earnings before interest, taxes, depreciation and amortization N/A—Not Applicable N/M—Not Meaningful A mounts represent weighted averages except where simple averages and the median of the inputs are provided when more relevant . Credit valuation adjustment (“CVA”) and funding valuation adjustments (“FVA”) are included in the balance but excluded from the Valuation Technique(s) and Significant Unobservable Inputs in the previous table. CVA is a Level 3 input when the underlying counterparty credit curve is unobservable. FVA is a Level 3 input in its entirety given the lack of observability of funding spreads in the principal market . Includes derivative contracts with multiple r isks ( i.e. , hybrid products). For a description of the Firm’s significant unobservable inputs and related sensitivity, see Note 3 to the consolidated financial statements in the 2016 Form 10-K. The following significant unobservable inputs were added during the current year period. Contingency probability — probability associated with the realization of an underlying event upon which the value of an asset is contingent. In general, an increase (decrease) to the contingency probability for an asset would result in a higher ( lower ) fair value. Recovery rate — amount expressed as a percentage of par that is expected to be received when a credit event occurs. In general, an increase (decrease) to the recovery rate for an asset would result in a higher (lower) fair value. Fair Value of Investments Measured at N AV For a description of the Firm’s investments in private equity funds, real estate funds and hedge funds measured at fair value based on NAV, see Note 3 to the consolidated financi al statements in the 201 6 Form 10-K. Investments in Certain Funds Measured at NAV per Share At September 30, 2017 At December 31, 2016 $ in millions Fair Value Commitment Fair Value Commitment Private equity $ 1,580 $ 359 $ 1,566 $ 335 Real estate 885 168 1,103 136 Hedge 1 87 4 147 4 Total $ 2,552 $ 531 $ 2,816 $ 475 Investments in hedge funds may be subject to initial period lock-up or gate provisions, which restrict an investor from withdrawing from the fund during a certain initial period or restrict the redemption amount on any redemption date, respectively. Nonredeemable Funds by Contractual Maturity Fair Value at September 30, 2017 $ in millions Private Equity Real Estate Less than 5 years $ 408 $ 77 5-10 years 1,005 490 Over 10 years 167 318 Total $ 1,580 $ 885 Fair Value Option The Firm elected the fair value option for certain eligible instruments that are risk managed on a fair value basis to mitigate income statement volatility caused by measurement basis differences between the elected instruments and their associated risk management transactions or to eliminate c omplexities of applying certain accounting models . Earnings Impact of Instruments under the Fair Value Option Interest Trading Income $ in millions Revenues (Expense) Net Revenues Three Months Ended September 30, 2017 Securities purchased under agreements to resell $ (1) $ 1 $ ─ Deposits (1) ─ (1) Short-term borrowings (7) ─ (7) Securities sold under agreements to repurchase 6 (5) 1 Long-term borrowings (957) (107) (1,064) Three Months Ended September 30, 2016 Securities purchased under agreements to resell $ (1) $ 2 $ 1 Deposits 2 ─ 2 Short-term borrowings (39) ─ (39) Securities sold under agreements to repurchase 7 (4) 3 Long-term borrowings (1,068) (116) (1,184) Interest Trading Income $ in millions Revenues (Expense) Net Revenues Nine Months Ended September 30, 2017 Securities purchased under agreements to resell $ (2) $ 3 $ 1 Deposits (2) ─ (2) Short-term borrowings (16) (1) (17) Securities sold under agreements to repurchase 5 (13) (8) Long-term borrowings (3,468) (337) (3,805) Nine Months Ended September 30, 2016 Securities purchased under agreements to resell $ (2) $ 6 $ 4 Deposits (1) (1) (2) Short-term borrowings (3) ─ (3) Securities sold under agreements to repurchase (5) (9) (14) Long-term borrowings (3,322) (385) (3,707) Gains (losses) are mainly attributable to changes in foreign currency rates or interest rates or movements in the reference price or index for short-term and long-term borrowings before the impact of related hedges . The amounts in the previous table are included within Net revenues and do not reflect any gains or losses on related hedging instruments. In addition to the amounts in the previous table, as discussed in Note 2 to the consolidated financial statements in t he 2016 Form 10-K, instruments within Trading assets or Trading liabilities are measured at fair value. Gains (Losses) Due to Changes in Instrument-Specific Credit Risk Three Months Ended September 30, 2017 2016 $ in millions Trading Revenues OCI Trading Revenues OCI Short-term and long-term borrowings 1 $ 9 $ (226) $ (5) $ (140) Securities sold under agreements to repurchase 1 ─ (3) ─ (3) Loans and other debt 2 49 ─ 26 ─ Lending commitments 3 ─ ─ ─ ─ Nine Months Ended September 30, 2017 2016 $ in millions Trading Revenues OCI Trading Revenues OCI Short-term and long-term borrowings 1 $ 1 $ (493) $ 36 $ 405 Securities sold under agreements to repurchase 1 ─ (6) ─ ─ Loans and other debt 2 94 ─ (88) ─ Lending commitments 3 ─ ─ 3 ─ $ in millions At September 30, 2017 At December 31, 2016 Cumulative pre-tax DVA gain (loss) recognized in AOCI $ (1,420) $ (921) OCI—Other comprehensive income (loss) 1. Unrealized DVA gains (losses) are recorded in OCI and , when realized, in Trading revenues . Se e Note 2 to the consolidated financial statements in the 2016 Form 10-K and Note 14 for further information. 2. Loans and other debt instrument-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses. 3. Gains (losses) on lending commitments were generally determined based on the differen ce between estimated expect ed client yields and contractual yields at each respective period-end. Short-Term and Long-Term Borrowings Measured at Fair Value on a Recurring Basis At At September 30, December 31, $ in millions 2017 2016 Business Unit Responsible for Risk Management Equity $ 25,300 $ 21,066 Interest rates 19,822 16,051 Foreign exchange 782 1,114 Credit 753 647 Commodities 232 264 Total $ 46,889 $ 39,142 Excess of Contractual Principal Amount Over Fair Value At At September 30, December 31, $ in millions 2017 2016 Loans and other debt 1 $ 12,911 $ 13,495 Loans 90 or more days past due and/or on nonaccrual status 1 11,116 11,502 Short-term and long-term borrowings 2 906 720 1. The majority of the difference between principal and fair value amounts for loans and other debt relates to distressed debt positions purchased at amounts well below par. 2. Short-term and long-term borrowings do not include structured notes where the repayment of the initial principal amount fluctuates based on changes in a reference price or index . Fair Value Loans on Nonaccrual Status At At September 30, December 31, $ in millions 2017 2016 Nonaccrual loans $ 1,429 $ 1,536 Nonaccrual loans 90 or more days past due $ 760 $ 787 The previous tables exclude non-recourse debt from consolidated VIEs, liabilities related to failed sales of financial assets, pledged commodities and other liabilities that have specified assets attributable to them. Assets and Liabilities M easured at Fair Value on a Nonr ecurring Basis Gains (Losses) 1 Three Months Ended |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 4. Derivative Instruments and Hedging Activities Derivative Fair Values At September 30, 2017 Assets $ in millions Bilateral OTC Cleared OTC 1 Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 1,380 $ 1 $ — $ 1,381 Foreign exchange contracts 93 9 — 102 Total 1,473 10 — 1,483 Not designated as accounting hedges Interest rate contracts 177,955 6,223 241 184,419 Credit contracts 6,599 2,305 — 8,904 Foreign exchange contracts 53,024 763 93 53,880 Equity contracts 26,915 — 22,529 49,444 Commodity and other contracts 8,117 — 2,159 10,276 Total 272,610 9,291 25,022 306,923 Total gross derivatives $ 274,083 $ 9,301 $ 25,022 $ 308,406 Amounts offset Counterparty netting (206,283) (6,917) (21,470) (234,670) Cash collateral netting (40,379) (1,982) — (42,361) Total in Trading assets $ 27,421 $ 402 $ 3,552 $ 31,375 Amounts not offset 2 Financial instruments collateral (12,241) — — (12,241) Other cash collateral (13) — — (13) Net amounts 3 $ 15,167 $ 402 $ 3,552 $ 19,121 Not subject to legally enforceable master netting or collateral agreements 3 Derivative assets $ 3,848 Liabilities $ in millions Bilateral OTC Cleared OTC 1 Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 66 $ — $ — $ 66 Foreign exchange contracts 47 21 — 68 Total 113 21 — 134 Not designated as accounting hedges Interest rate contracts 161,790 4,419 184 166,393 Credit contracts 7,475 2,558 — 10,033 Foreign exchange contracts 53,580 675 52 54,307 Equity contracts 29,189 — 21,837 51,026 Commodity and other contracts 5,596 — 2,089 7,685 Total 257,630 7,652 24,162 289,444 Total gross derivatives $ 257,743 $ 7,673 $ 24,162 $ 289,578 Amounts offset Counterparty netting (206,283) (6,917) (21,470) (234,670) Cash collateral netting (30,021) (448) — (30,469) Total in Trading liabilities $ 21,439 $ 308 $ 2,692 $ 24,439 Amounts not offset 2 Financial instruments collateral (5,035) — (497) (5,532) Other cash collateral (10) (81) — (91) Net amounts 3 $ 16,394 $ 227 $ 2,195 $ 18,816 Not subject to legally enforceable master netting or collateral agreements 3 Derivative liabilities $ 3,508 At December 31, 2016 Assets $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 1,924 $ 1,049 $ — $ 2,973 Foreign exchange contracts 249 18 — 267 Total 2,173 1,067 — 3,240 Not designated as accounting hedges Interest rate contracts 200,336 99,217 384 299,937 Credit contracts 9,837 2,392 — 12,229 Foreign exchange contracts 73,645 1,022 231 74,898 Equity contracts 20,710 — 17,919 38,629 Commodity and other contracts 9,792 — 3,727 13,519 Total 314,320 102,631 22,261 439,212 Total gross derivatives $ 316,493 $ 103,698 $ 22,261 $ 442,452 Amounts offset Counterparty netting (243,488) (100,477) (19,607) (363,572) Cash collateral netting (45,875) (1,799) — (47,674) Total in Trading assets $ 27,130 $ 1,422 $ 2,654 $ 31,206 Amounts not offset 2 Financial instruments collateral (10,293) — — (10,293) Other cash collateral (124) — — (124) Net amounts 3 $ 16,713 $ 1,422 $ 2,654 $ 20,789 Not subject to legally enforceable master netting or collateral agreements 3 Derivative assets $ 3,656 Liabilities $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 77 $ 647 $ — $ 724 Foreign exchange contracts 15 25 — 40 Total 92 672 — 764 Not designated as accounting hedges Interest rate contracts 183,063 103,392 397 286,852 Credit contracts 11,024 2,401 — 13,425 Foreign exchange contracts 74,575 952 16 75,543 Equity contracts 22,531 — 17,983 40,514 Commodity and other contracts 8,303 — 3,582 11,885 Total 299,496 106,745 21,978 428,219 Total gross derivatives $ 299,588 $ 107,417 $ 21,978 $ 428,983 Amounts offset Counterparty netting (243,488) (100,477) (19,607) (363,572) Cash collateral netting (30,405) (5,691) — (36,096) Total in Trading liabilities $ 25,695 $ 1,249 $ 2,371 $ 29,315 Amounts not offset 2 Financial instruments collateral (7,638) — (585) (8,223) Other cash collateral (10) (1) — (11) Net amounts 3 $ 18,047 $ 1,248 $ 1,786 $ 21,081 Not subject to legally enforceable master netting or collateral agreements 3 Derivative liabilities $ 3,497 OTC—Over - the-counter 1. Effective in the first quarter of 2017, the Chicago Mercantile Exchange amended its rulebook for cleared OTC derivatives, resulting in the characterization of variation margin transfers as settlement payments as opposed to cash posted as collateral. In the quarter of adoption, the cleared OTC gross derivative assets and liabi lities, and related counterparty and cash collateral netting amounts in total decreased by approximately $ 13 billion and $ 20 billion, respectively. Effective in the third quarter of 2017, derivatives cleared through LCH Clearnet Limited became subject to t he rulebook under which variation margin transfers are settlement payments. As a result, cleared OTC gross derivative assets and liabilities, and related counterparty and cash collateral netting amounts in total decreased by approximately $ 62 billion and $ 59 billion, respectively. 2. Amounts relate to master netting agreements and collateral agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with appl icable offsetting accounting guidance . 3 . Net 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 enf orceable. See Note 3 for information related to t he unsettled fair value of futures contracts not designated as accounting hedges, which are excluded from the table above. Derivative Notionals At September 30, 2017 Assets $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 24 $ 44 $ — $ 68 Foreign exchange contracts 6 1 — 7 Total 30 45 — 75 Not designated as accounting hedges Interest rate contracts 3,952 6,675 2,880 13,507 Credit contracts 242 110 — 352 Foreign exchange contracts 2,224 77 30 2,331 Equity contracts 388 — 323 711 Commodity and other contracts 85 — 80 165 Total 6,891 6,862 3,313 17,066 Total gross derivatives $ 6,921 $ 6,907 $ 3,313 $ 17,141 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 2 $ 97 $ — $ 99 Foreign exchange contracts 3 1 — 4 Total 5 98 — 103 Not designated as accounting hedges Interest rate contracts 3,919 6,749 1,028 11,696 Credit contracts 271 92 — 363 Foreign exchange contracts 2,137 74 14 2,225 Equity contracts 409 — 381 790 Commodity and other contracts 67 — 69 136 Total 6,803 6,915 1,492 15,210 Total gross derivatives $ 6,808 $ 7,013 $ 1,492 $ 15,313 At December 31, 2016 Assets $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 30 $ 38 $ — $ 68 Foreign exchange contracts 6 — — 6 Total 36 38 — 74 Not designated as accounting hedges Interest rate contracts 3,586 6,224 2,586 12,396 Credit contracts 333 112 — 445 Foreign exchange contracts 1,580 52 13 1,645 Equity contracts 338 — 242 580 Commodity and other contracts 67 — 79 146 Total 5,904 6,388 2,920 15,212 Total gross derivatives $ 5,940 $ 6,426 $ 2,920 $ 15,286 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 2 $ 52 $ — $ 54 Foreign exchange contracts 1 1 — 2 Total 3 53 — 56 Not designated as accounting hedges Interest rate contracts 3,462 6,087 897 10,446 Credit contracts 359 96 — 455 Foreign exchange contracts 1,557 48 14 1,619 Equity contracts 321 — 273 594 Commodity and other contracts 78 — 59 137 Total 5,777 6,231 1,243 13,251 Total gross derivatives $ 5,780 $ 6,284 $ 1,243 $ 13,307 For information related to offsetting of certain collateralized transactions, see Note 6. For a discussion of the Firm’s deriva tive instruments and hedging activities, see Note 4 to the consolidated financial statements in the 2016 Form 10-K . Gains (Losses) on Fair Value Hedges Recognized in Interest Expense Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Derivatives $ (218) $ (733) $ (878) $ 2,386 Borrowings 175 790 670 (2,492) Total $ (43) $ 57 $ (208) $ (106) Gains (Losses) on Net Investment Hedges Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Foreign exchange contracts Effective portion—OCI $ (88) $ (60) $ (340) $ (396) Forward points excluded from hedge effectiveness testing—Interest income $ (3) $ (20) $ (22) $ (59) Trading Revenues by Product Type Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Interest rate contracts $ 648 $ 357 $ 1,693 $ 983 Foreign exchange contracts 181 170 613 769 Equity security and index contracts 1 1,416 1,415 4,875 4,360 Commodity and other contracts 223 63 522 (61) Credit contracts 236 604 1,167 1,369 Total $ 2,704 $ 2,609 $ 8,870 $ 7,420 1. Dividend income is included within equity security and index contracts. The previous table summarizes gains and losses included in Trading revenues in the income statements. These activities include revenues related to derivative and non-derivative financial instruments. The Firm generally utilizes financial instruments across a variety of product types in connection with its market-making and related risk m anagement strategies. Accordingly, the trading revenues presented in the previous table are not representative of the manner in which the Firm manages its business activities and are prepared in a manner similar to the presentation of trading revenues for regulatory reporting purposes. 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 September 30, 2017 At December 31, 2016 Net derivative liabilities with credit risk-related contingent features $ 19,359 $ 22,939 Collateral posted 14,499 17,040 The additional collateral or termination payments that may be called in the event of a future credit rating downgrade vary by contract and can be based on ratings by either or both of Moody’s Investors Service, Inc. (“ Moody’s”) and Standard & Poor’s Global Ratings (“ S&P”) . The following table shows the future potential collateral amounts and termination payments that could be called or required by counterparties or exchange and clearing organizations in the event of one-notch or two-notch downgrade scenarios based on the relevant contractual downgrade triggers. Incremental Collateral or Termination Payments upon Potential Future Ratings Downgrade $ in millions At September 30, 2017 1 One-notch downgrade $ 592 Two-notch downgrade 512 1. Amounts include $ 873 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 credit default swaps, under which it receives or provides protection against the risk of default on a set of debt obligations issued by a specified reference entity or entities. A majority of the Firm’s counterparties for these derivatives are banks, broker-dealers, and insurance and other financial institutions. For further information on credit derivatives and other credit contracts, see Note 4 t o the consolidated financial statements in the 2016 Form 10-K. Protection Sold and Purchased with Credit Default Swaps At September 30, 2017 Protection Sold Protection Purchased $ in millions Notional Fair Value (Asset)/ Liability Notional Fair Value (Asset)/ Liability Credit default swaps Single name $ 173,202 $ (1,400) $ 189,290 $ 1,803 Index and basket 145,107 (237) 141,565 264 Tranched index and basket 22,049 (367) 44,193 1,066 Total $ 340,358 $ (2,004) $ 375,048 $ 3,133 Portion of single name and non-tranched index and basket with identical underlying reference obligations $ 315,931 — $ 327,959 — 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 Portion of single name and non-tranched index and basket with identical underlying reference obligations $ 395,536 — $ 389,221 — Fair value amounts as shown in the table below are on a gross basis prior to cash collateral or counterparty netting. In order to provide an indication of the current payment status or performance risk of the credit default swaps, a breakdown of credit d efault swaps 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 l imits framework used to control credit risk. The Firm uses quantitative models and judgment to estimate the various risk parameters related to each obligor . Credit Ratings of Reference Obligation and Maturities of Credit Protection Sold At September 30, 2017 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Single name credit default swaps Investment grade $ 46,372 $ 44,877 $ 21,662 $ 11,411 $ 124,322 $ (1,220) Non-investment grade 20,527 19,378 6,959 2,016 48,880 (180) Total single name credit default swaps 66,899 64,255 28,621 13,427 173,202 (1,400) Index and basket credit default swaps Investment grade 23,097 13,752 28,918 19,124 84,891 (885) Non-investment grade 28,650 7,293 25,129 21,193 82,265 281 Total index and basket credit default swaps 51,747 21,045 54,047 40,317 167,156 (604) Total credit default swaps sold $ 118,646 $ 85,300 $ 82,668 $ 53,744 $ 340,358 $ (2,004) Other credit contracts 14 — — 135 149 13 Total credit derivatives and other credit contracts $ 118,660 $ 85,300 $ 82,668 $ 53,879 $ 340,507 $ (1,991) At December 31, 2016 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Single name credit default swaps 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 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) |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2017 | |
Investment securities | |
Investment Securities | 5. Investment Securities The following tables present information about the Firm ’s AFS securities, which are carried at fair value, and HTM securities, which are carried at amortized cost. The net unrealized gains or losses on AFS securities are reported on an after-tax basis as a component of AOCI. AFS and HTM Securities At September 30, 2017 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 24,706 $ — $ 425 $ 24,281 U.S. agency securities 1 24,018 42 164 23,896 Total U.S. government and agency securities 48,724 42 589 48,177 Corporate and other debt: CMBS: Agency 1,452 2 42 1,412 Non-agency 1,215 4 7 1,212 Corporate bonds 1,486 13 7 1,492 CLO 434 1 — 435 FFELP student loan ABS 2 2,217 13 8 2,222 Total corporate and other debt 6,804 33 64 6,773 Total AFS debt securities 55,528 75 653 54,950 AFS equity securities 15 — 11 4 Total AFS securities 55,543 75 664 54,954 HTM securities U.S. government and agency securities: U.S. Treasury securities 11,501 7 249 11,259 U.S. agency securities 1 12,384 18 151 12,251 Total U.S. government and agency securities 23,885 25 400 23,510 Corporate and other debt: CMBS: Non-agency 247 1 1 247 Total corporate and other debt 247 1 1 247 Total HTM securities 24,132 26 401 23,757 Total investment securities $ 79,675 $ 101 $ 1,065 $ 78,711 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: CMBS: Agency 1,850 2 44 1,808 Non-agency 2,250 11 16 2,245 Auto loan ABS 1,509 1 1 1,509 Corporate bonds 3,836 7 22 3,821 CLO 540 — 1 539 FFELP student loan ABS 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 and agency 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 CMBS—Commercial mortgage-backed securities CLO—Collateralized loan obligations ABS—Asset-backed securities U.S. agency securities consist mainly of agency-issued debt, agency mortgage pass-through pool securities and collateralized mortgage obligations. FFELP Federal Family Education Loan Program. Amounts are backed by a guarantee from the U.S. Department of Education of at least 95 % of the principal balance and interest on such loans . Investment Securities in an Unrealized Loss Position At September 30, 2017 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 21,910 $ 364 $ 2,371 $ 61 $ 24,281 $ 425 U.S. agency securities 10,737 136 1,431 28 12,168 164 Total U.S. government and agency securities 32,647 500 3,802 89 36,449 589 Corporate and other debt: CMBS: Agency 991 42 — — 991 42 Non-agency 192 2 571 5 763 7 Corporate bonds 186 1 332 6 518 7 FFELP student loan ABS 1,058 8 — — 1,058 8 Total corporate and other debt 2,427 53 903 11 3,330 64 Total AFS debt securities 35,074 553 4,705 100 39,779 653 AFS equity securities — — 4 11 4 11 Total AFS securities 35,074 553 4,709 111 39,783 664 HTM securities U.S. government and agency securities: U.S. Treasury securities 9,848 249 — — 9,848 249 U.S. agency securities 10,084 151 — — 10,084 151 Total U.S. government and agency securities 19,932 400 — — 19,932 400 Corporate and other debt: CMBS: Non-agency 71 1 — — 71 1 Total corporate and other debt 71 1 — — 71 1 Total HTM securities 20,003 401 — — 20,003 401 Total investment securities $ 55,077 $ 954 $ 4,709 $ 111 $ 59,786 $ 1,065 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: CMBS: Agency 1,245 44 — — 1,245 44 Non-agency 763 11 594 5 1,357 16 Auto loan ABS 659 1 123 — 782 1 Corporate bonds 2,050 21 142 1 2,192 22 CLO 178 — 239 1 417 1 FFELP student loan ABS 2,612 61 — — 2,612 61 Total corporate and other debt 7,507 138 1,098 7 8,605 145 Total AFS debt securities 49,590 961 1,223 7 50,813 968 AFS equity securities 6 9 — — 6 9 Total AFS securities 49,596 970 1,223 7 50,819 977 HTM securities U.S. government and agency securities: U.S. Treasury securities 5,057 283 — — 5,057 283 U.S. agency securities 10,612 188 — — 10,612 188 Total HTM securities 15,669 471 — — 15,669 471 Total investment securities $ 65,265 $ 1,441 $ 1,223 $ 7 $ 66,488 $ 1,448 As discussed in Note 2 to the consolidated financial statements in the 2016 Form 10-K, AFS and HTM securities with a current fair value less than their amortized cost are analyzed as part of the Firm’s ongoing assessment of temporaril y versus other-than-temporarily impaired at the individual security level. The Firm believes there are no securities in an unrealized loss position that are other-than-temporarily-impaired at September 30, 2017 and December 31, 2016 for the reasons discussed herein. For AFS debt securities, the Firm does not intend to sell the securities and is not likely to be required to sell the securities prior to recovery of amortized cost basis. For AFS and HTM debt securities, the securities have not experienced credit losses as the net unrealized losses reported in the previous table are primarily due to higher interest rates since those securities were purchased. Additionally, for U.S. government and agency securities, the existence of an explicit and implicit guarantee provided by the U.S. government is considered and the Firm does not expect to experience a credit loss (as discussed in Note 2 to the consolidated financial statements in the 2016 Form 10-K ) . The risk of credit loss on securities in an unrealized loss position is c onsidered minimal because the Firm’s U.S. government and agency securities, as well as ABS, CMBS and CLO, 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 s ecurities for a period of time sufficient to allow for any anticipated recovery in market value. See Note 12 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, non-agency CMBS, auto loan ABS, CLO and FFELP student loan ABS . Investment Securities by Contractual Maturity At September 30, 2017 $ in millions Amortized Cost Fair Value Annualized Average Yield AFS debt securities U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 5,300 $ 5,286 0.9% After 1 year through 5 years 14,129 13,954 1.4% After 5 years through 10 years 5,277 5,041 1.5% Total 24,706 24,281 U.S. agency securities: Due within 1 year 1,300 1,302 0.2% After 1 year through 5 years 2,570 2,564 0.9% After 5 years through 10 years 1,250 1,246 1.9% After 10 years 18,898 18,784 1.8% Total 24,018 23,896 Total U.S. government and agency securities 48,724 48,177 1.5% Corporate and other debt: CMBS: Agency: Due within 1 year 18 18 1.1% After 1 year through 5 years 283 282 1.4% After 5 years through 10 years 300 301 1.2% After 10 years 851 811 1.6% Total 1,452 1,412 Non-agency: After 5 years through 10 years 36 35 2.5% After 10 years 1,179 1,177 1.8% Total 1,215 1,212 Corporate bonds: Due within 1 year 46 46 1.2% After 1 year through 5 years 1,218 1,225 2.4% After 5 years through 10 years 222 221 2.3% Total 1,486 1,492 CLO: After 5 years through 10 years 236 236 1.5% After 10 years 198 199 2.4% Total 434 435 FFELP student loan ABS: After 1 year through 5 years 52 51 0.8% After 5 years through 10 years 393 390 0.8% After 10 years 1,772 1,781 1.1% Total 2,217 2,222 Total corporate and other debt 6,804 6,773 1.6% Total AFS debt securities 55,528 54,950 1.5% AFS equity securities 15 4 ― % Total AFS securities 55,543 54,954 1.5% HTM securities U.S. government securities: U.S. Treasury securities: Due within 1 year 300 300 0.6% After 1 year through 5 years 5,163 5,151 1.5% After 5 years through 10 years 5,311 5,157 1.9% After 10 years 727 651 2.3% Total 11,501 11,259 U.S. agency securities: After 10 years 12,384 12,251 2.4% Total 12,384 12,251 Total U.S. government and agency securities 23,885 23,510 2.0% Corporate and other debt: CMBS: Non-agency: After 1 year through 5 years 99 99 3.6% After 5 years through 10 years 148 148 3.7% Total 247 247 Total corporate and other debt 247 247 3.7% Total HTM securities 24,132 23,757 2.1% Total investment securities $ 79,675 $ 78,711 1.7% Gross Realized Gains and Losses on Sales of AFS Securities Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Gross realized gains $ 11 $ 45 $ 38 $ 130 Gross realized (losses) — — (11) (3) Total $ 11 $ 45 $ 27 $ 127 Gross realized gains and losses are recognized in Other revenues in the income statements. |
Collateralized Transactions
Collateralized Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Collateralized Transactions | |
Collateralized Transactions | 6. Collateralized Transactions The Firm enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate cust omers’ needs and to finance its inventory positions. For further discussion of the Firm’s collateralized transactions, see Note 6 to the consolidated financial statements in the 2016 Form 10-K. Offsetting of Certain Collateralized Transactions At September 30, 2017 $ in millions Gross Amounts Amounts Offset Net Amounts Presented Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 174,387 $ (84,281) $ 90,106 $ (84,895) $ 5,211 Securities borrowed 145,923 (13,031) 132,892 (128,616) 4,276 Liabilities Securities sold under agreements to repurchase $ 138,264 $ (84,281) $ 53,983 $ (46,145) $ 7,838 Securities loaned 28,662 (13,032) 15,630 (15,550) 80 Not subject to legally enforceable master netting agreements 2 Securities purchased under agreements to resell $ 4,599 Securities borrowed 720 Securities sold under agreements to repurchase 6,521 Securities loaned 7 At December 31, 2016 $ in millions Gross Amounts Amounts Offset Net Amounts Presented Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 182,888 $ (80,933) $ 101,955 $ (93,365) $ 8,590 Securities borrowed 129,934 (4,698) 125,236 (118,974) 6,262 Liabilities Securities sold under agreements to repurchase $ 135,561 $ (80,933) $ 54,628 $ (47,933) $ 6,695 Securities loaned 20,542 (4,698) 15,844 (15,670) 174 Not subject to legally enforceable master netting agreements 2 Securities purchased under agreements to resell $ 7,765 Securities borrowed 2,591 Securities sold under agreements to repurchase 6,500 Securities loaned 154 1. Amounts relate to master netting agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. 2. Represents amounts within Net Amounts related to transactions that are either not subject to master netting agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable . For information related to of fsetting of derivatives, see Note 4 . Maturities and Collateral Pledged Gross Secured Financing Balances by Remaining Contractual Maturity At September 30, 2017 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase $ 38,581 $ 38,455 $ 18,398 $ 42,830 $ 138,264 Securities loaned 17,274 541 1,426 9,421 28,662 Total included in the offsetting disclosure $ 55,855 $ 38,996 $ 19,824 $ 52,251 $ 166,926 Trading liabilities ― Obligation to return securities received as collateral 21,208 — — — 21,208 Total $ 77,063 $ 38,996 $ 19,824 $ 52,251 $ 188,134 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 $ 41,549 $ 36,703 $ 24,648 $ 32,661 $ 135,561 Securities loaned 9,487 851 2,863 7,341 20,542 Total 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 Gross Secured Financing Balances by Class of Collateral Pledged $ in millions At September 30, 2017 At December 31, 2016 Securities sold under agreements to repurchase U.S. government and agency securities $ 40,758 $ 56,372 State and municipal securities 828 1,363 Other sovereign government obligations 64,529 42,790 Asset-backed securities 2,267 1,918 Corporate and other debt 8,244 9,086 Corporate equities 20,773 23,152 Other 865 880 Total securities sold under agreements to repurchase $ 138,264 $ 135,561 Securities loaned Other sovereign government obligations 13,259 4,762 Corporate and other debt 9 73 Corporate equities 15,152 15,693 Other 242 14 Total securities loaned $ 28,662 $ 20,542 Total included in the offsetting disclosure $ 166,926 $ 156,103 Trading liabilities ― Obligation to return securities received as collateral Corporate equities $ 21,208 $ 20,262 Total $ 188,134 $ 176,365 Assets Pledged The Firm pledges its trading assets and loans to collateralize securities sold under agreements to repurchase, securities loaned, other secured financings and derivatives. Counterparties may or may not have the right to sell or repledge the collateral. Pledged financial instruments that can be sold or repledged by the secured party are identified as Trading assets (pledged to various parties) in the balance sheets. Carrying Value of Assets Loaned or Pledged without Counterparty Right to Sell or Repledge $ in millions At September 30, 2017 At December 31, 2016 Trading assets $ 37,800 $ 41,358 Loans (gross of allowance for loan losses) 570 — Total $ 38,370 $ 41,358 Collateral Received The Firm receives collateral in the form of securities in connection with securities purchased under agreements to resell, securities borrowed, derivative transactions, customer margin loans and securities-based lending. In many cases, the Firm is permitted to sell or repledge these securities held as collateral and use the securities to secure securities sold under agreements to repurchase , to enter into securities lending and derivative transactions or for delivery to counterpar ties to cover short positions. The Firm also receives securities as collateral in connection with certain securities-for-securities transactions. In instances where the Firm is the lender and permitted to sell or repledge these securities, it reports the fair value of the collateral received and the related obligation to return the collateral included in Trading assets and Trading liabilities, respectively, in its balance sheet s. Fair Value of Collateral Received with Right to Sell or Repledge $ in millions At September 30, 2017 At December 31, 2016 Collateral received with right to sell or repledge $ 575,915 $ 561,239 Collateral that was sold or repledged 470,555 430,911 Customer Margin Lending and Other $ in millions At September 30, 2017 At December 31, 2016 Net customer receivables representing margin loans $ 28,609 $ 24,359 The Firm engages in margin lending to clients that allows the client to borrow against the value of qualifying securities. Margin loans are included within Customer and other receivables in the balance sheet s. Under these agreements and transactions, the Firm receives collateral, including U.S. government and agency securities, other sovereign government obligations, corporate and other debt, and corporate equities. Customer receivables generated from margin lending activities are collate ralized 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. For a further discussion of the Firm’s margin lending activities, see Note 6 to the consolidated financial statements in the 2016 Form 10-K. The Firm has additional secured liabilities. For a further discussion of other secured financings, see Note 10 . Cash and Securities Deposited with Clearing Organizations or Segregated $ in millions At September 30, 2017 At December 31, 2016 Segregated securities 1 $ 17,491 $ 23,756 Other assets―Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 32,731 33,979 Total $ 50,222 $ 57,735 Securities segregated under federal regulations for the Firm’s U.S. broker-dealers are sourced from Securities purchased under agreements to resell and Trading assets in the balance sheets. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans and Allowance for Credit Losses | 7. Loans and Allowance for Credit Losses Loans The Firm’s loans held for investment are recorded at amortized cost, and its loans held for sale are recorded at the lower of cost or fair value in the balance sheets. For a further description of these loans, refer to Note 7 to the consolidated financial statements in the 2016 Form 10-K. See Note 3 for further information regarding Loans and lending commitments held at fair value. Loans by Type At September 30, 2017 $ in millions Loans Held for Investment Loans Held for Sale Total Loans Corporate loans $ 29,686 $ 12,524 $ 42,210 Consumer loans 26,616 — 26,616 Residential real estate loans 26,150 60 26,210 Wholesale real estate loans 9,000 640 9,640 Total loans, gross 91,452 13,224 104,676 Allowance for loan losses (245) — (245) Total loans, net $ 91,207 $ 13,224 $ 104,431 At December 31, 2016 $ in millions Loans Held for Investment Loans Held for Sale Total Loans Corporate loans $ 25,025 $ 10,710 $ 35,735 Consumer loans 24,866 — 24,866 Residential real estate loans 24,385 61 24,446 Wholesale real estate loans 7,702 1,773 9,475 Total loans, gross 81,978 12,544 94,522 Allowance for loan losses (274) — (274) Total loans, net $ 81,704 $ 12,544 $ 94,248 Loans by Interest Rate Type $ in millions At September 30, 2017 At December 31, 2016 Fixed $ 13,323 $ 11,895 Floating or adjustable 91,108 82,353 Total loans, net $ 104,431 $ 94,248 Loans to Non-U.S. Borrowers $ in millions At September 30, 2017 At December 31, 2016 Loans, net of allowance $ 8,883 $ 9,388 Credit Quality For a further discussion about the Firm’s evaluation of credit transactions and monitoring and credit quality indicators, as well as factors considered by the Firm in determining the allowance for loan losses and impairments, see Notes 2 and 7 to the consolidated financial statements in the 2016 Form 10-K. Loans Held for Investment before Allowance by Credit Quality At September 30, 2017 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 28,735 $ 26,613 $ 26,092 $ 8,435 $ 89,875 Special mention 435 3 — 250 688 Substandard 509 — 58 315 882 Doubtful 7 — — — 7 Loss — — — — — Total $ 29,686 $ 26,616 $ 26,150 $ 9,000 $ 91,452 At December 31, 2016 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 23,409 $ 24,853 $ 24,345 $ 7,294 $ 79,901 Special mention 288 13 — 218 519 Substandard 1,259 — 40 190 1,489 Doubtful 69 — — — 69 Loss — — — — — Total $ 25,025 $ 24,866 $ 24,385 $ 7,702 $ 81,978 The following loans and lending commitments have been evaluated for a specific allowance. All remaining loans and lending commitments are assessed under the inherent allowance methodolog y . Impaired Loans and Lending Commitments Before Allowance At September 30, 2017 $ in millions Corporate Residential Real Estate Total Loans With allowance $ 15 $ — $ 15 Without allowance 1 146 46 192 Unpaid principal balance 2 170 47 217 Lending Commitments With allowance $ 1 $ — $ 1 Without allowance 1 221 — 221 At December 31, 2016 $ in millions Corporate Residential Real Estate Total Loans With allowance $ 104 $ — $ 104 Without allowance 1 206 35 241 Unpaid principal balance 2 316 38 354 Lending Commitments With allowance $ — $ — $ — Without allowance 1 89 — 89 At September 30, 2017 and December 31, 2016 , no allowance was recorded for these loans and lending commitments as the present value of the expected future cash flows (or, alternatively, the observable market price of the instrument 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 without allowance due to various factors, including charge- offs and net deferred loan fees or costs. Impaired Loans and Allowance by Region At September 30, 2017 $ in millions Americas EMEA Asia-Pacific Total Impaired loans $ 188 $ 9 $ 10 $ 207 Allowance for loan losses 209 33 3 245 At December 31, 2016 $ in millions Americas EMEA Asia-Pacific Total Impaired loans $ 320 $ 9 $ 16 $ 345 Allowance for loan losses 245 28 1 274 EMEA—Europe, Middle East and Africa Troubled Debt Restructurings $ in millions At September 30, 2017 At December 31, 2016 Loans $ 69 $ 67 Lending commitments 11 14 Allowance for loan losses 10 — Impaired loans and lending commitments classified as held for investment within corporate loans include troubled debt restructurings as shown in the previous table. These restructurings typically include modifications of interest rates, collateral requirements, other loan covenants and payment extensions. Allowance for Loan Losses Rollforward Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2016 $ 195 $ 4 $ 20 $ 55 $ 274 Gross charge-offs (75) — — — (75) Recoveries 1 — — — 1 Net recoveries (charge-offs) (74) — — — (74) Provision (release) 1 26 — 4 12 42 Other 2 — — 1 3 September 30, 2017 $ 149 $ 4 $ 24 $ 68 $ 245 Inherent $ 142 $ 4 $ 24 $ 68 $ 238 Specific 7 — — — 7 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Gross charge-offs (15) — — — (15) Gross recoveries — — — — — Net recoveries (charge-offs) (15) — — — (15) Provision (release) 1 120 (2) 3 8 129 Other 2 (52) — — — (52) September 30, 2016 $ 219 $ 3 $ 20 $ 45 $ 287 Inherent $ 142 $ 3 $ 20 $ 45 $ 210 Specific 77 — — — 77 The Firm recorded provisions of $ 13 million and $ 1 million for loan losses for the current quarter and prior year quarter, respectively. Amount includes the impact related to the transfer to loans held for sale and foreign currency translation adjustments. Allowance for Lending Commitments Rollforward Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2016 $ 185 $ 1 $ — $ 4 $ 190 Provision (release) 1 (10) — — — (10) Other 1 — — — 1 September 30, 2017 $ 176 $ 1 $ — $ 4 $ 181 Inherent $ 173 $ 1 $ — $ 4 $ 178 Specific 3 — — — 3 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Provision (release) 1 9 — — — 9 Other (7) — — — (7) September 30, 2016 $ 182 $ 1 $ — $ 4 $ 187 Inherent $ 180 $ 1 $ — $ 4 $ 185 Specific 2 — — — 2 The Firm recorded a release of $ 6 million , and a provision of $ 6 million for lending commitments for the current quarter and prior year quarter, respectively. Employee Loans $ in millions At September 30, 2017 At December 31, 2016 Balance $ 4,317 $ 4,804 Allowance for loan losses (79) (89) Balance, net $ 4,238 $ 4,715 Repayment term range, in years 1 to 20 1 to 12 Employee loans are granted in conjunction with a program established to retain and recruit certain employees, are full recourse and generally require periodic repayments . These loans are recorded in Customer and other receivables in the balance sheets. The Firm establishes an allowance for loan amounts it does not consider recoverable, and the related provision is recorded in C ompensation and benefits expense. |
Equity Method Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures | |
Equity Method Investments | 8. Equity Method Investments Overview The Firm’s investments accounted for under the equity method of accounting (see Note 1 to the consolidated financial statements in the 2016 Form 10-K) are included in Other assets in the balance sheets. Income (loss) from equity method investments is included in Other revenues in the income statements. Equity Method Investment Balances $ in millions At September 30, 2017 At December 31, 2016 Investments $ 2,766 $ 2,837 Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Income (loss) $ — $ (40) $ — $ (39) Ja panese Securities Joint Venture Included in the equity method investments is t he Firm’s 40 % voting interest (“40% interest”) in Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“MUMSS”). Mitsubishi UFJ Financial Group, Inc. (“MUFG”) holds a 60 % voting interest. The Firm accounts for its equity method investment in MUMSS within the Institutional Securities business segment. T he Firm record s income from its 40% interest in MUMSS within Other revenues in the income statements . Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Income from investment in MUMSS $ 25 $ 26 $ 96 $ 83 In addition to MUMSS, the Firm held other equity method investments that were not individually significant. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2017 | |
Deposits [Abstract] | |
Deposits | 9. De posi ts Deposits At September 30, At December 31, $ in millions 2017 2016 Savings and demand deposits $ 140,707 $ 154,559 Time deposits 1 13,932 1,304 Total 2 $ 154,639 $ 155,863 Deposits subject to FDIC insurance $ 121,896 $ 127,992 Time deposits that equal or exceed the FDIC insurance limit $ 10 $ 46 Interest Bearing Time Deposit Maturities $ in millions At September 30, 2017 2017 $ 3,447 2018 9,456 2019 861 2020 — 2021 8 Thereafter 160 FDIC—Federal Deposit Insurance Corporation Certain time deposit accounts are carried at fair value under the fair value option (see Note 3). Deposits were primarily held in the U.S. |
Long-Term Borrowings and Other
Long-Term Borrowings and Other Secured Financings | 9 Months Ended |
Sep. 30, 2017 | |
Borrowings and Other Secured Financings | |
Long-Term Borrowings and Other Secured Financings | 10. Long-Term Borrowings and Other Secured Financings Long-Term Borrowings $ in millions At September 30, 2017 At December 31, 2016 Senior $ 181,336 $ 154,472 Subordinated 10,341 10,303 Total $ 191,677 $ 164,775 Weighted average stated maturity, in years 6.7 5.9 Other Secured Financings Other secured financings include the liabilities related to transfers of financial assets that are accounted for as financings rather than sales, consolidated VIEs where the Firm is deemed to be the primary beneficiary, pledged commodities, certain equity-linked notes and other secured borrowings. These liabilities are generally payable from the cash flows of the related assets accounted fo r as Trading assets . See Note 12 for further inform ation on Other secured financings related to VIEs and securitization activities. Other Secured Financings by Original Maturity and Type $ in millions At September 30, 2017 At December 31, 2016 Secured financings Original maturities: Greater than one year $ 11,037 $ 9,404 One year or less 2,349 1,429 Failed sales 1 858 285 Total $ 14,244 $ 11,118 For more information o n failed sales, see Note 12. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments, Guarantees and Contingencies [Abstract] | |
Commitments, Guarantees and Contingencies | 11. Commitments, Guarantees and Contingencies Commitments The Firm’s commitments are summarized in the following table by years to maturity. Since commitments associated with these instruments may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. Years to Maturity at September 30, 2017 Less $ in millions than 1 1-3 3-5 Over 5 Total Lending: Corporate $ 13,001 $ 30,194 $ 44,669 $ 4,122 $ 91,986 Consumer 6,182 — 2 3 6,187 Residential real estate 17 39 70 273 399 Wholesale real estate 124 281 114 232 751 Forward-starting secured financing receivables 1 68,538 — — — 68,538 Investment activities 504 180 55 259 998 Letters of credit and other financial guarantees 157 1 1 44 203 Total $ 88,523 $ 30,695 $ 44,911 $ 4,933 $ 169,062 Corporate lending commitments participated to third parties $ 6,335 Forward-starting secured financing receivables settled within three business days 1 $ 60,013 1. Represents forward-starting securities purchased under agreements to resell and securities borrowed agreements. For a further description of these commitments, refer to Note 12 to the consolidated financial statements in the 2016 Form 10-K. Guarantees Obligations under Guarantee Arrangements at September 30, 2017 Maximum Potential Payout/Notional Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Credit derivatives $ 118,646 $ 85,300 $ 82,668 $ 53,744 $ 340,358 Other credit contracts 14 — — 135 149 Non-credit derivatives 1,592,809 1,029,404 374,956 573,755 3,570,924 Standby letters of credit and other financial guarantees issued 1 782 909 1,406 4,956 8,053 Market value guarantees 40 62 69 — 171 Liquidity facilities 3,237 — — — 3,237 Whole loan sales guarantees — — 1 23,260 23,261 Securitization representations and warranties — — — 58,423 58,423 General partner guarantees 34 49 332 25 440 Carrying Amount (Asset)/ Liability Collateral/ Recourse $ in millions Credit derivatives 2 $ (2,004) $ — Other credit contracts 13 — Non-credit derivatives 2 38,611 — Standby letters of credit and other financial guarantees issued 1 (186) 6,593 Market value guarantees 1 4 Liquidity facilities (5) 5,342 Whole loan sales guarantees 8 — Securitization representations and warranties 91 — General partner guarantees 53 — 1. These amounts include certain issued standby letters of credit participated to third parties , totaling $ 0.7 billion of notional and collateral/recourse, due to the nature of the Firm’s obligations under these arrangements . 2. Carrying amounts of derivative contracts are shown on a gross basis prior to cash collateral or counterparty netting. For further information on derivative contracts, see Note 4. The Firm also has obligations under certain guarantee arrangements, including contracts and indemnification agreements , that contingently require the Firm to make payments to the guaranteed party based on changes in an underlying measure (such as an interest or foreign exchange rate, secur ity or commodity price, an index, or the occurrence or non-occurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. Al so included as guarantees are contracts that contingently require the Firm to make payments to the guaranteed party based on another entity’s failure to perform under an agreement, as well as indirect guarantees of the indebtedness of others. In certain situations, collateral may be held by the Firm for those contracts that meet the definition of a guarantee. Generally, the Firm sets collateral requirements by counterparty so that the collateral covers various transactions and products and is not allocated specifically to individual contracts. Also, the Firm may recover amounts related to the underlying asset delivered to the Firm under the derivative contract. For more in formation on the nature of the obligation and related business activity for market value guarantees, liquidity facilities, whole loan sales g uarantees and general partner guarantees related to certain investment management funds, as well as the other produ cts in the previous table, see Note 12 to the consolidated financial statements in the 2016 Form 10-K. Other Guarantees and Indemnities In the normal course of business, the Firm provides guarantees and indemnifications in a variety of transactions. The se provisions generally are standard contractual terms. Certain of these guarantees and indemnifications related to indemnities, exchange/clearinghouse member guarantees and merger and acquisition guarantees are described in Note 12 to the consolidated fin ancial statements in the 2016 Form 10-K. In addition, in the ordinary course of business, the Firm guarantees the debt and/or certain trading obligations (including obligations associated with derivatives, foreign exchange contracts and the settlement of physical commodities) of certain subsidiaries. These guarantees generally are entity or product specific and are required by investors or trading counterparties. The activities of the Firm’s subsidiaries covered by these guarantees (including any related d ebt or trading obligations) are included in the financial statements. Finance Subsidiary The Parent Company fully and unconditionally guarantees the securities issued by Morgan Stanley Finance LLC, a 100%-owned finance subsidiary. Contingencies Legal . In the normal course of business, the Firm has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with its activities as a global diversified financi al services institution. Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the entities that would otherwise be the primary d efendants 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 assurance that material losses will not be incurred from claims that have not yet be en 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 l iability had been incurred at the date of the consolidated financial statements and the Firm can reasonably estimate the amount of that loss, the Firm accrues the estimated loss by a charge to income. In many proceedings and 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 pr eviously 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 proc eedings and investigations where the factual record is being developed or contested or where plaintiffs or governmental entities seek substantial or indeterminate damages, restitution, disgorgement or penalties. Numerous issues may need to be resolved, inc luding through potentially lengthy discovery and determination of important factual matters, determination of issues related to class certification and the calculation of damages or other relief, and by addressing novel or unsettled legal questions relevan t to the proceedings or investigations in question, before a loss or additional loss or range of loss or additional range of loss can be reasonably estimated for a proceeding or investigation. For certain other legal proceedings and investigations, the Firm can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but does not believe, based on current knowledge and after consultation with counsel, that such losses will have a ma terial adverse effect on the Firm’s consolidated financial statements as a whole, other than the matters referred to in the following paragraphs. On July 15, 2010 , China Development Industrial Bank (“CDIB”) filed a complaint against the Firm , styled China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al ., which is pending in the Supreme Court of the State of New York, New York County (“ Supreme Court of NY ”). The complaint relates to a $275 million credit default swap referencing the s uper senior portion of the STACK 2006-1 CDO. The complaint asserts claims for common law fraud, fraudulent inducement and fraudulent concealment and alleges that the Firm misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that the Firm knew that the assets backing the CDO were of poor quality when it entered into the credit default swap with CDIB. The complaint seeks compensatory damages related to the approximately $228 million that CDIB alleges it has already lost under the credit default swap, rescission of CDIB’s obligation to pay an additional $12 million, 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 bel ieves it could incur a loss in this action of up to approximately $ 240 million plus pre- and post-judgment interest, fees and costs. On August 8, 2012 , U.S. Bank , in its capacity as trustee, filed a complaint on behalf of Morgan Stanley Mortgage Loan Trus t 2006-14SL, Mortgage Pass-Through Certificates, Series 2006-14SL, Morgan Stanley Mortgage Loan Trust 2007-4SL and Mortgage Pass-Through Certificates, Series 2007-4SL against the Firm styled Morgan Stanley Mortgage Loan Trust 2006-14SL, et al. v. Morgan St anley Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc ., pending in the Supreme Court of NY . The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trusts, wh ich had original principal balances of approximately $354 million and $305 million respectively, breached various representations and warranties. The complaint seeks, among other relief, rescission of the mortgage loan purchase agreements underlying the tr ansactions, 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 m oved 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 receive d repurchase demands that it did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On May 3, 2013 , plaintiffs in Deutsche Ze ntral-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 th e sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Firm to plaintiff was approximat ely $644 million. The complaint alleges causes of action against the Firm for common law fraud, fraudulent concealment, aiding and abetting fraud, negligent misrepresentation, and rescission and seeks, among other things, compensatory and punitive damages . On June 10, 2014, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. On June 20, 2017 the Appellate Division, First Department, affirmed the lower court’s June 10, 2014 order. On July 28, 2017, the Firm filed a motion for leave to appeal that decision to the New York Court of Appeals. On October 3, 2017, the Appellate Division, First Department denied the Firm’s motion for leave to appeal. At September 25, 2017, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $23 2 million, and the certificates had incurred actual losses of approximately $87 million. Based on currently available in formation, the Firm believes it could incur a loss in this action up to the di fference between the $232 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against the Firm, or upon sale, plus pre- and post-judgment interest, fees and costs. The Firm may be en titled 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 Stanle y 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 c laims 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, spec ific 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. B ased on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $ 240 million, the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands that it did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On December 30, 2013 , Wilmington Trust Company , in its capacity as trustee fo r Morgan Stanley Mortgage Loan Trust 2007-12, filed a complaint against the Firm styled Wilmington Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC et al. , pending in the Supreme Court of NY . The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original principal balance of approximately $516 million, breached various representations and warranties. The complaint seeks, among other relief, unspecified damages, attorneys’ fees, interest and costs. On February 28, 2014, the defendants filed a motion to dismiss the complaint, which was granted in part and denied in part on June 14, 2016. The plaintiff filed a notice of appeal of that order on August 17, 2016, and the appeal w as fully briefed on May 5, 2017. On July 11, 2017, the Appellate Division, First Department affirmed in part and reversed in part the trial court’s order that granted in part the Firm’s motion to dismiss. On August 10, 2017, plaintiff filed a motion for le ave to appeal the Appellate Division, First Department’s July 11, 2017 decision and order. On September 26, 2017, the Appellate Division, First Department denied plaintiff’s motion for leave to appeal. Based on currently available information, the Firm be lieves that it could incur a loss in this action of up to approximately $ 152 million, the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands that it did not repurchase, plus attorney’s fees, costs and interes t, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On April 28, 2014 , Deutsche Bank National Trust Company , in its capacity as trustee for Morgan Stanley Structured Trust I 2007-1, filed a com plaint against the Firm styled Deutsche Bank National Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC , pending in the United States District Court for the Southern District of New York . The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original principal balance of approximately $735 million, breached various representations and warranties. The complaint seeks, among other relief, specific performance of the loan brea ch remedy procedures in the transaction documents, unspecified compensatory and/or rescissory damages, interest and costs. On April 3, 2015, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. On May 8, 2017, the Firm m oved for summary judgment. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $ 292 million, the total original unpaid balance of the mortgage loans for which the Firm received repurc hase 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 19, 2014 , Financial Guaranty Insuran ce Company (“FGIC”) filed a complaint against the Firm in the Supreme Court of NY , styled Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. relating to a securitization issued by Basket of Aggregated Residential NIMS 2007-1 L td. The complaint asserts claims for breach of contract and alleges, among other things, that the net interest margin securities (“NIMS”) in the trust breached various representations and warranties. FGIC issued a financial guaranty policy with respect to certain notes that had an original balance of approximately $475 million. The complaint seeks, among other relief, specific performance of the NIMS breach remedy procedures in the transaction documents, unspecified damages, reimbursement of certain payment s made pursuant to the transaction documents, attorneys’ fees and interest. On November 24, 2014, the Firm filed a motion to dismiss the complaint, which the court denied on January 19, 2017. On February 24, 2017, the Firm filed a notice of appeal of the c ourt’s order. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $ 126 million, the unpaid balance of these notes, plus pre- and post-judgment interest, fees and costs, as well as cla im payments that FGIC has made and will make in the future. On September 23, 2014 , FGIC filed a complaint against the Firm in the Supreme Court of NY styled Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. relating to the M organ Stanley ABS Capital I Inc. Trust 2007-NC4. The complaint asserts claims for breach of contract and fraudulent inducement and alleges, among other things, that the loans in the trust breached various representations and warranties and defendants made untrue statements and material omissions to induce FGIC to issue a financial guaranty policy on certain classes of certificates that had an original balance of approximately $876 million. The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, compensatory, consequential and punitive damages, attorneys’ fees and interest. On January 23, 2017, the court denied the Firm’s motion to dismiss the complaint. On February 24, 2017, the Firm fi led a notice of appeal of the court’s order. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $ 277 million, the total original unpaid balance of the mortgage loans for which the Fi rm received repurchase demands from a certificate holder and FGIC that the Firm did not repurchase, plus pre- and post-judgment interest, fees and costs, as well as claim payments that FGIC has made and will make in the future. In addition, plaintiff is se eking to expand the number of loans at issue and the possible range of loss could increase. On January 23, 2015 , Deutsche Bank National Trust Company , in its capacity as trustee, filed a complaint against the Firm styled Deutsche Bank National Trust Compa ny solely in its capacity as Trustee of the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 v. Morgan Stanley Mortgage Capital Holdings LLC as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc., and Morgan Stanley ABS Capital I Inc. , pending in t he Supreme Court of NY . The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original principal balance of approximately $1.05 billion, breached various representations and warrantie s. The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, compensatory, consequential, rescissory, equitable and punitive damages, attorneys’ fees, costs and other related expenses, and interest. On December 11, 2015, the court granted in part and denied in part the Firm’s motion to dismiss the complaint. On February 11, 2016, plaintiff filed a notice of appeal of that order, and the appeal was fully briefed on August 19, 2016. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $ 277 million, the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands from a certificate h older and a monoline insurer that the Firm did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. In matters styled Case numb er 15/3637 and Case number 15/4353 , the Dutch Tax Authority (“Dutch Authority”) is challenging, in the District Court in Amsterdam , the prior set-off by the Firm of approximately €124 million (plus accrued interest) of withholding tax credits against the F irm’s corporation tax liabilities for the tax years 2007 to 2013. The Dutch Authority alleges that the Firm was not entitled to receive the withholding tax credits on the basis, inter alia, that a Firm subsidiary did not hold legal title to certain securit ies subject to withholding tax on the relevant dates. The Dutch Authority has also alleged that the Firm failed to provide certain information to the Dutch Authority and keep adequate books and records. The Firm does not agree with these allegations. A h earing took place on September 19, 2017. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately € 124 million (plus accrued interest). |
Variable Interest Entities and
Variable Interest Entities and Securitization Activities | 9 Months Ended |
Sep. 30, 2017 | |
Securitization Activities and Variable Interest Entities [Abstract] | |
Variable Interest Entity Disclosures | 12. Variable Interest Entities and Securitization Activities Overview For a discussion o f the Firm’s VIEs, the determination and structure of VIEs and securitization activities, see Note 13 to the consolidated financial statements in the 2016 Form 10-K. Consolidated VIEs Assets and Liabilities by Type of Activity At September 30, 2017 At December 31, 2016 $ in millions VIE Assets VIE Liabilities VIE Assets VIE Liabilities Credit-linked notes $ 100 $ — $ 501 $ — Other structured financings 398 3 602 10 MABS 1 90 69 397 283 Other 2 1,156 260 910 25 Total $ 1,744 $ 332 $ 2,410 $ 318 Amounts in clude transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets. The value of assets is determined based on the fair value of the liabilities and the interests owned by the Firm in such VIEs because the fair values for the liabilities and interests owned are more observable. Other primarily includes certain operating entities, investment funds and structured transactions. Assets and Liabilities by Balance Sheet Caption At September 30, At December 31, $ in millions 2017 2016 Assets Cash and due from banks $ 82 $ 74 Trading assets at fair value 741 1,295 Customer and other receivables 15 13 Goodwill 18 18 Intangible assets 160 177 Other assets 728 833 Total $ 1,744 $ 2,410 Liabilities Other secured financings at fair value $ 297 $ 289 Other liabilities and accrued expenses 35 29 Total $ 332 $ 318 Consolidated VIE assets and liabilities are presented in the previous tables after intercompany eliminations. Most assets owned by consolidated VIEs cannot be removed unilaterally by the Firm and are not generally available to the Firm. Most related liabilities issued by consolidated VIEs are non-recourse to the Firm. In certain other consolidated VIEs, the Firm either has the unilateral right to remove assets or provides additional recourse through derivatives such as total return swaps, g uarantees 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 variab le interest holders. Select Information Related to Consolidated VIEs At September 30, At December 31, $ in millions 2017 2016 Noncontrolling interests $ 197 $ 228 Maximum exposure to losses 1 — 78 Primarily related to certain derivatives, commitments, guarantees and other forms of involvement not recognized in the financial statements . Non-c onsolidated VIEs T he following tables include all VIEs in which the Firm has determined that its maximum exposure to loss is greater than specific thresholds or meets certain other criteria and exclude exposure to loss from liabilities due to immateriality . Most of the VIEs included in the following tables a re sponsored by unrelated parties; the Firm ’s involvement generally is the result of its secondary market-making activities, securities held in its Investment securities portfolio (see Note 5) and certain investments in funds. Non-consolidated VIEs At September 30, 2017 $ in millions MABS CDO MTOB OSF Other VIE assets (unpaid principal balance) $ 78,134 $ 7,153 $ 5,149 $ 3,709 $ 33,041 Maximum exposure to loss Debt and equity interests $ 8,908 $ 1,162 $ 44 $ 1,551 $ 5,684 Derivative and other contracts — — 3,237 — 50 Commitments, guarantees and other 850 1,007 — 169 451 Total $ 9,758 $ 2,169 $ 3,281 $ 1,720 $ 6,185 Carrying value of exposure to loss—Assets Debt and equity interests $ 8,908 $ 1,162 $ 44 $ 1,145 $ 5,684 Derivative and other contracts — — 6 — 5 Total $ 8,908 $ 1,162 $ 50 $ 1,145 $ 5,689 At December 31, 2016 $ in millions MABS CDO MTOB OSF Other VIE assets (unpaid principal balance) $ 101,916 $ 11,341 $ 4,857 $ 4,293 $ 39,077 Maximum exposure to loss Debt and equity interests $ 11,243 $ 1,245 $ 50 $ 1,570 $ 4,877 Derivative and other contracts — — 2,812 — 45 Commitments, guarantees and other 684 99 — 187 228 Total $ 11,927 $ 1,344 $ 2,862 $ 1,757 $ 5,150 Carrying value of exposure to loss—Assets Debt and equity interests $ 11,243 $ 1,245 $ 49 $ 1,183 $ 4,877 Derivative and other contracts — — 5 — 18 Total $ 11,243 $ 1,245 $ 54 $ 1,183 $ 4,895 MTOB— Municipal tender option bonds OSF— Other structured financing s Non-consolidated VIE Mortgage- and Asset-Backed Securitization Assets At September 30, 2017 At December 31, 2016 Unpaid Principal Balance Debt and Equity Interests Unpaid Principal Balance Debt and Equity Interests $ in millions Residential mortgages $ 13,043 $ 910 $ 4,775 $ 458 Commercial mortgages 43,920 1,964 54,021 2,656 U.S. agency collateralized mortgage obligations 12,015 2,723 14,796 2,758 Other consumer or commercial loans 9,156 3,311 28,324 5,371 Total $ 78,134 $ 8,908 $ 101,916 $ 11,243 The Firm’s maximum exposure to loss presented above often differs from the carrying value of the variable interests held by the Firm. The maximum exposure to loss presented above is dependent on the nature of the Firm’s variable interest in the VIEs and is limited to the notional amounts of certain liquidity facilities, other credit support, total return swaps, written put options, and the fair value of certain other derivatives and investments the Firm has made in the VIEs. Liabilities issued by VIEs gen erally are non-recourse to the Firm. Where notional amounts are utilized in quantifying the maximum exposure related to derivatives, such amounts do not reflect fair value write-downs already recorded by the Firm. The Firm’s maximum exposure to loss pres ented above does not include the offsetting benefit of any financial instruments that the Firm may utilize to hedge these risks associated with its variable interests. In addition, the Firm’s maximum exposure to loss presented above is not reduced by the a mount 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 F irm owned additional VIE assets mainly issued by securitization SPEs for which the maximum exposure to loss is less than specific thresholds. These additional assets totaled $ 11.9 billion and $ 11.7 billion at September 30, 2017 and December 31, 2016 , respectively. These assets were either retained in connection with transfers of assets by the Firm, acquired in connection with secondary market-making activities, held as AFS securities in its Investment securities portfolio (see N ote 5), or held as investments in funds. At September 30, 2017 and December 31, 2016 , these assets consisted of securities backed by residential mortgage loans, commercial mortgage loans or other consumer loans, such as credit card receivables, aut omobile loans and student loans, CDOs or CLOs, and investment funds. The Firm’s primary risk exposure is to the securities issued by the SPE owned by the Firm, with the highest risk on the most subordinate class of beneficial interests. These assets gene rally are included in Trading assets—Corporate and other debt, Trading assets—Investments or AFS securities within its Investment securities portfolio and are measured at fair value (see Note 3). The Firm does not provide additional support in these tra nsactions through contractual facilities, such as liquidity facilities, guarantees or similar derivatives. The Firm’s maximum exposure to loss generally equals the fair value of the assets owned. Transactions with SPEs in which the Firm, acting as principal, transferred financial assets with continuing involvement and received sales treatment are shown in the following tables. Transfers of Assets with Continuing Involvement At September 30, 2017 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other 1 $ in millions SPE assets (unpaid principal balance) 2 $ 16,173 $ 55,682 $ 11,363 $ 11,602 Retained interests Investment grade 3 $ — $ 233 $ 682 $ 5 Non-investment grade (fair value) 2 139 — 638 Total $ 2 $ 372 $ 682 $ 643 Interests purchased in the secondary market (fair value) Investment grade $ — $ 68 $ 26 $ — Non-investment grade 38 81 — — Total $ 38 $ 149 $ 26 $ — Derivative assets (fair value) $ — $ — $ — $ 239 Derivative liabilities (fair value) — — — 72 At December 31, 2016 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other 1 $ in millions SPE assets (unpaid principal balance) 2 $ 19,381 $ 43,104 $ 11,092 $ 11,613 Retained interests (fair value) Investment grade $ — $ 22 $ 375 $ — Non-investment grade 4 79 — 826 Total $ 4 $ 101 $ 375 $ 826 Interests purchased in the secondary market (fair value) Investment grade $ — $ 30 $ 26 $ — Non-investment grade 23 75 — — Total $ 23 $ 105 $ 26 $ — Derivative assets (fair value) $ — $ 261 $ — $ 89 Derivative liabilities (fair value) — — — 459 Amounts include CLO transactions managed by unrelated third parties. Amounts include assets transferred by unrelated transferors . Amounts include $ 692 million of investment grade retained interests at fair value. Fair Value at September 30, 2017 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 687 $ 5 $ 692 Non-investment grade 48 731 779 Total $ 735 $ 736 $ 1,471 Interests purchased in the secondary market Investment grade $ 93 $ 1 $ 94 Non-investment grade 106 13 119 Total $ 199 $ 14 $ 213 Derivative assets $ 77 $ 162 $ 239 Derivative liabilities 67 5 72 Fair Value at December 31, 2016 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 385 $ 12 $ 397 Non-investment grade 14 895 909 Total $ 399 $ 907 $ 1,306 Interests purchased in the secondary market Investment grade $ 56 $ — $ 56 Non-investment grade 84 14 98 Total $ 140 $ 14 $ 154 Derivative assets $ 348 $ 2 $ 350 Derivative liabilities 98 361 459 Transferred assets are carried at fair value prior to securitization, and any changes in fair value are recognized in the income statements. The Firm may act as underwriter of the beneficial interests issued by these securitization vehicles. Investment banking underwriting net revenues are recognized in connection with these transactions. The Firm may retain interests in the securitized financial assets as one or more tranches of the securitization. These retained int erests are generally carried at fair value in the balance sheets with changes in fair value recognized in the income statements. Proceeds from New Securitization Transactions and Sales of Loans Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 New transactions 1 $ 6,875 $ 6,819 $ 17,622 $ 13,695 Retained interests 648 768 1,607 1,901 Sales of corporate loans to CLO SPEs 1,2 56 199 148 230 Net gains on new transactions and sale s of corporate loans to CLO entities at the time of the sale were not material for all periods presented. Sponsored by non-affiliates . The Firm has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Firm (see Note 11). The Firm also enters into transactions in which it sells equity securities and contemporaneously enters into bilateral OTC equity derivatives with the purchasers of the securities, through which it retains the exposure to the securities as shown in the fol lowing table. Assets Sold with Retained Exposure $ in millions At September 30, 2017 At December 31, 2016 Carrying value of assets derecognized at the time of sale and gross cash proceeds $ 14,458 $ 11,209 Fair value Assets sold 14,618 11,301 Derivative assets recognized in the balance sheets 177 128 Derivative liabilities recognized in the balance sheets 17 36 Failed Sales For transfers that fail to meet the accounting criteria for a sale, the Firm continues to recognize the assets in Trading assets at fair value, and the Firm recognizes the associated liabilities in Other secured financings at fair value in the balance sheets (see Note 10 ). The assets transferred to certain unconsolidated VIEs in transactions accounted for as failed sales cannot be removed unilaterally by the Firm and are not generally available to the Firm. The related liabi lities are also non-recourse to the Firm. In certain other failed sale transactions, the Firm has the right to remove assets or provides additional recourse through derivatives such as total return swaps, guarantees or other forms of involvement. Carrying Value of Assets and Liabilities Related to Failed Sales At September 30, 2017 At December 31, 2016 $ in millions Assets Liabilities Assets Liabilities Failed sales $ 858 $ 858 $ 285 $ 285 |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2017 | |
Regulatory Requirements | |
Regulatory Requirements | 13. Regulatory Requirements Regulatory Capital Framework and Requirements For a discussion of the Firm’s regulatory capital framework, see Note 14 to the consolidated financial statements in the 2016 Form 10-K. The Firm is required to maintain minimum risk-based and leverage capital ratios under the regulatory capital requirements. A summary of the calculations of regulatory capital, risk-weighted assets (“RWAs”) and transition provisions follows. The Firm’s risk-based capital ratios for purposes of determin ing regulatory compliance are the lower of the capital ratios computed under (i) the standardized approaches for calculating credit risk and market risk RWAs (the “Standardized Approach”) an d (ii) the applicable advanced approaches for calculating credit r isk, market risk and operational risk RWAs (the “Advanced Approach”). Minimum risk-based capital ratio requirements apply to Common Equity Tier 1 capital, Tier 1 capital and Total capital. Certain adjustments to and deductions from capital are required f or purposes of determining these ratios, such as goodwill, intangible assets, certain deferred tax assets, other amounts in AOCI and investments in the capital instruments of unconsolidated financial institutions. Certain of these adjustments and deduction s are also subject to transitional provisions. In addition to the minimum risk-based capital ratio requirements, on a fully phased-in basis by 2019, the Firm will be subject to: A greater than 2.5% Common Equity Tier 1 capital conservation buffer; The Common Equity Tier 1 global systemically important bank capital surcharge, currently at 3%; and Up to a 2.5% Common Equity Tier 1 countercyclical capital buffer, currently set by U.S. banking regulators at zero (collectively, the “buffers”). In 2017, the phase-in amount for each of the buffers is 50% of the fully phased-in buffer requirement. Failure to maintain the buffers will result in restrictions on the Firm’s ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. 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 resu lt in differences in the Firm’s reported capital ratios from one reporting period to the next that are independent of changes to its capital base, asset composition, off-balance sheet exposures or risk profile. For a further discussion of the Firm’s calcu lation of risk-based capital ratios, see Note 14 to the consolidated financial statements in the 2016 Form 10-K. The Firm’s Regulatory Capital and Capital Ratios At September 30, 2017 , the Firm’s ratios are based on the Standardized Approach transitional rules. At December 31, 2016 , the Firm’s ratios were based on the Advanced Approach transitional rules. Regulatory Capital At September 30, 2017 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 62,214 16.9% 7.3% Tier 1 capital 71,006 19.3% 8.8% Total capital 81,861 22.2% 10.8% Tier 1 leverage — 8.4% 4.0% Total RWAs $ 368,629 N/A N/A Adjusted average assets 2 841,360 N/A N/A At December 31, 2016 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 60,398 16.9% 5.9% Tier 1 capital 68,097 19.0% 7.4% Total capital 78,642 22.0% 9.4% Tier 1 leverage — 8.4% 4.0% Total RWAs $ 358,141 N/A N/A Adjusted average assets 2 811,402 N/A N/A N/A—Not Applicable 1. Percentages represent minimum regulatory capital ratios under the transitional rules. 2 . 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 current quarter and the quarter ended December 31, 2016 , resp ectively , adjusted for disallowed goodwill, transitional intangible assets, certain deferred tax assets, certain investments in the capital instruments of unconsolidated financial institutions and other adjustments. U.S. Bank Subsidiaries ’ Regulatory Capital and Capital Ratios Morgan Stanley Bank, N.A. (“MSBNA”) and Morgan Stanley Private Bank, National Association (“MSPBNA”) (collectively, “U.S. Bank Subsidiaries”) are subject to similar regulatory capital requirements as the Firm. Failure to meet minimum capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on the U.S. Bank Subsidiaries ’ financial statements. Unde r 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, liabilities and certain off-balance sheet it ems as calculated under regulatory accounting practices. Each U.S. depository institution subsidiary of the Firm must be well-capitalized in order for the Firm to continue to qualify as a financial holding company and to continue to engage in the broades t range of financial activities permitted for financial holding companies. Under regulatory capital requirements adopted by the U.S. federal banking agencies, U.S. depository institutions must maintain certain minimum capital ratios in order to be consider ed well-capitalized. At September 30, 2017 and December 31, 2016 , the Firm’s U.S. Bank Subsidiaries maintained capital at levels sufficiently in excess of the universally mandated well-capitalized requirements to address any additional capital needs an d requirements identified by the U.S. federal banking regulators. At September 30, 2017 and December 31, 2016 , the U.S. Bank Subsidiaries’ ratios are based on the Standardized Approach transitional rules. MSBNA’s Regulatory Capital At September 30, 2017 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 14,839 19.3% 6.5% Tier 1 capital 14,839 19.3% 8.0% Total capital 15,110 19.7% 10.0% Tier 1 leverage 14,839 11.8% 5.0% At December 31, 2016 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 13,398 16.9% 6.5% Tier 1 capital 13,398 16.9% 8.0% Total capital 14,858 18.7% 10.0% Tier 1 leverage 13,398 10.5% 5.0% 1. Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. MSPBNA’s Regulatory Capital At September 30, 2017 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 6,082 24.6% 6.5% Tier 1 capital 6,082 24.6% 8.0% Total capital 6,124 24.8% 10.0% Tier 1 leverage 6,082 9.8% 5.0% At December 31, 2016 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 5,589 26.1% 6.5% Tier 1 capital 5,589 26.1% 8.0% Total capital 5,626 26.3% 10.0% Tier 1 leverage 5,589 10.6% 5.0% 1. Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. U.S. Broker-Dealer Regulatory Capital Requirements MS&Co. Regulatory Capital $ in millions At September 30, 2017 At December 31, 2016 Net capital $ 10,613 $ 10,311 Excess net capital 8,558 8,034 Morgan Stanley & Co. LLC (“MS&Co.”) is a registered U.S. broker-dealer and registered futures commission merchant and, accordingly, is subject to the minimum net capital requirements of the U.S. Securities and Exchange Commission (“SEC”) and the U.S. Commod ity Futures Trading Commission (“CFTC”). MS&Co. has consistently operated with capital in excess of its regulatory capital requirements. As an Alternative Net Capital broker- dealer, and in accordance with the market and credit risk standards of Appe ndix E of SEC Rule 15c3-1, MS&Co. is subject to minimum net capital and tentative net capital requirements . In addition, MS&Co. must notify the SEC if its tentative net capit al falls below certain levels. At September 30, 2017 and Decem ber 31, 2016 , MS&Co. has exceeded its net capital requirement and has tentative net capital in excess of the minimum and notification requireme nts. MSSB LLC Regulatory Capital $ in millions At September 30, 2017 At December 31, 2016 Net capital $ 2,573 $ 3,946 Excess net capital 2,415 3,797 Morgan Stanley Smith Barney LLC (“MSSB LLC”) is a registered U.S. broker- dealer and introducing broker for the futures business and, accordingly, is subject to the minimum net capital requirements of the SEC. MSSB LLC has consistently operated with capital in excess of its regulatory capital requirements. Other Regulated Subsidiaries Morgan Stanley & Co. International plc (“MSIP”), a London-based broker-dealer subsidiary, is subject to the capital requirements of the Prudential Regulation Authority, and Morgan Stanley MUFG Securities Co., Ltd. (“MSMS”), a Tokyo-based broker-dealer subsidiary, is subject to the capital requirements of the Financial Services Agency. MSIP and MSMS have consistently operated with capital in excess of their respective regulatory capital requirements. Certain other U.S. and non-U.S. subsidiaries of the Firm are subject to various securities, commodities and banking regulations, and capital adequacy requirements promulgated by the regulatory and exchange authorities of the countries in which they operate. These subsi diaries have consistently operated with capital in excess of their local capital adequacy requirements. |
Total Equity
Total Equity | 9 Months Ended |
Sep. 30, 2017 | |
Total Equity | |
Total Equity | 14. Total Equi ty Dividends and Share Repurchases Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Repurchases of common stock $ 1,250 $ 1,250 $ 2,500 $ 2,500 On June 28, 2017, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) announced that they did not object to the Firm’s 2017 capital plan (“Capital Plan”). The Capital Plan includes the share repurchase of up to $ 5.0 billion of outstanding common stock for the period beginning July 1, 2017 through June 30, 2018 , an increase from $ 3.5 billion in the 2016 Capital Plan. Additionally, the Capital Plan includes an increase in the quarterly common stock dividend to $ 0.25 pe r share from $ 0.20 per share, beginning with the common stock dividend declared on July 19, 2017 . On October 17, 2017 , the Firm announced that the Board of Directors (the “ Board”) declared a quarterly dividend per common share of $0.25. The dividend is pa yable on November 15, 2017 to common shareholders of record on October 31, 2017 . Preferred Stock Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Dividends declared $ 93 $ 78 $ 353 $ 312 F or a description of Series A through Series K preferred stock issuances, see Note 15 to the consolidated financial statements in the 2016 F orm 10-K. O n September 15 , 2017 , the Firm announced that the Board declared quarterly dividend s for preferred stock shareholders of record on September 29 , 2017 that were paid on October 16 , 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 Fir m’s preferred stock qualifies as Tier 1 capital in accordance with regulatory capital requirements (see Note 13). Series K Preferred Stock. The Series K Preferred Stock offering (net of related issuance costs) in January 2017 resulted in proceeds of ap proximately $ 994 million. Preferred Stock Outstanding $ in millions, except per share data Shares Outstanding Carrying Value At Liquidation At At September 30, Preference September 30, December 31, 2017 per Share 2017 2016 Series A 44,000 $ 25,000 $ 1,100 $ 1,100 C 1 519,882 1,000 408 408 E 34,500 25,000 862 862 F 34,000 25,000 850 850 G 20,000 25,000 500 500 H 52,000 25,000 1,300 1,300 I 40,000 25,000 1,000 1,000 J 60,000 25,000 1,500 1,500 K 40,000 25,000 1,000 — Total $ 8,520 $ 7,520 1. Series C is composed of the issuance of 1,160,791 shares of Series C Preferred Stock to MUFG for an aggregate purchase price of $ 911 million, less the redemption of 640,909 shares of Series C Preferred Stock of $ 503 million, which were converted to common shares of approximately $ 705 million. Comprehe nsive Income (Loss ) Accumulated Other Comprehensive Income (Loss) 1 $ in millions Foreign Currency Translation Adjustments AFS Securities Pensions, Postretirement and Other DVA Total June 30, 2017 $ (856) $ (396) $ (470) $ (766) $ (2,488) OCI during the period 61 26 — (143) (56) September 30, 2017 $ (795) $ (370) $ (470) $ (909) $ (2,544) June 30, 2016 $ (779) $ 219 $ (378) $ 33 $ (905) OCI during the period 25 (99) (1) (90) (165) September 30, 2016 $ (754) $ 120 $ (379) $ (57) $ (1,070) December 31, 2016 $ (986) $ (588) $ (474) $ (595) $ (2,643) OCI during the period 191 218 4 (314) 99 September 30, 2017 $ (795) $ (370) $ (470) $ (909) $ (2,544) December 31, 2015 $ (963) $ (319) $ (374) $ — $ (1,656) Cumulative adjustment for accounting change related to DVA 2 — — — (312) (312) OCI during the period 209 439 (5) 255 898 September 30, 2016 $ (754) $ 120 $ (379) $ (57) $ (1,070) Amounts net of tax and noncontrolling interests. In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , a cumulative catch- up adjustment was recorded as of January 1, 2016 to move the cumulative unrealized DVA amount, net of noncontrolling interest s and tax, related to outstanding liabilities under the fair value option election from Retained earnings into AOCI. See Note 2 to the consolidated financial statements in the 2016 Form 10-K for further informa tion. Period Changes in OCI Components Three Months Ended September 30, 2017 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 19 $ 42 $ 61 $ — $ 61 Reclassified to earnings — — — — — Net OCI $ 19 $ 42 $ 61 $ — $ 61 Change in net unrealized gains (losses) on AFS securities OCI activity $ 52 $ (19) $ 33 $ — $ 33 Reclassified to earnings 1 (11) 4 (7) — (7) Net OCI $ 41 $ (15) $ 26 $ — $ 26 Pension, postretirement and other OCI activity $ — $ — $ — $ — $ — Reclassified to earnings 1 1 (1) — — — Net OCI $ 1 $ (1) $ — $ — $ — Change in net DVA OCI activity $ (220) $ 77 $ (143) $ (6) $ (137) Reclassified to earnings 1 (9) 3 (6) — (6) Net OCI $ (229) $ 80 $ (149) $ (6) $ (143) Three Months Ended September 30, 2016 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 13 $ 30 $ 43 $ 18 $ 25 Reclassified to earnings — — — — — Net OCI $ 13 $ 30 $ 43 $ 18 $ 25 Change in net unrealized gains (losses) on AFS securities OCI activity $ (112) $ 41 $ (71) $ — $ (71) Reclassified to earnings 1 (45) 17 (28) — (28) Net OCI $ (157) $ 58 $ (99) $ — $ (99) Pension, postretirement and other OCI activity $ — $ — $ — $ — $ — Reclassified to earnings 1 (1) — (1) — (1) Net OCI $ (1) $ — $ (1) $ — $ (1) Change in net DVA OCI activity $ (149) $ 52 $ (97) $ (3) $ (94) Reclassified to earnings 1 6 (2) 4 — 4 Net OCI $ (143) $ 50 $ (93) $ (3) $ (90) Nine Months Ended September 30, 2017 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 63 $ 160 $ 223 $ 32 $ 191 Reclassified to earnings — — — — — Net OCI $ 63 $ 160 $ 223 $ 32 $ 191 Change in net unrealized gains (losses) on AFS securities OCI activity $ 374 $ (139) $ 235 $ — $ 235 Reclassified to earnings 1 (27) 10 (17) — (17) Net OCI $ 347 $ (129) $ 218 $ — $ 218 Pension, postretirement and other OCI activity $ 3 $ — $ 3 $ — $ 3 Reclassified to earnings 1 2 (1) 1 — 1 Net OCI $ 5 $ (1) $ 4 $ — $ 4 Change in net DVA OCI activity $ (498) $ 175 $ (323) $ (9) $ (314) Reclassified to earnings 1 (1) 1 — — — Net OCI $ (499) $ 176 $ (323) $ (9) $ (314) Nine Months Ended September 30, 2016 2 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 156 $ 204 $ 360 $ 151 $ 209 Reclassified to earnings — — — — — Net OCI $ 156 $ 204 $ 360 $ 151 $ 209 Change in net unrealized gains (losses) on AFS securities OCI activity $ 822 $ (303) $ 519 $ — $ 519 Reclassified to earnings 1 (127) 47 (80) — (80) Net OCI $ 695 $ (256) $ 439 $ — $ 439 Pension, postretirement and other OCI activity $ (6) $ 3 $ (3) $ — $ (3) Reclassified to earnings 1 (3) 1 (2) — (2) Net OCI $ (9) $ 4 $ (5) $ — $ (5) Change in net DVA OCI activity $ 440 $ (163) $ 277 $ — $ 277 Reclassified to earnings 1 (35) 13 (22) — (22) Net OCI $ 405 $ (150) $ 255 $ — $ 255 Amounts reclassified to earnings related to: realized gains and losses from sales of AFS securities are classified within Other revenues in the income statements; Pension, postretirement and other are classified within Compensation and benefits expenses in the income statements; and realization of DVA are classified within Trading revenues in the income statements . Exclusive of 2016 cumulative adjustment for accounting change related to DVA. Noncontrolling Interests $ in millions At September 30, 2017 At December 31, 2016 Noncontrolling interests $ 1,136 $ 1,127 |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 15. Earnings per Common Shar e Calculation of Basic and Diluted Earnings per Common Sh are (“ EPS ”) Three Months Ended Nine Months Ended September 30, September 30, in millions, except for per share data 2017 2016 2017 2016 Basic EPS Income from continuing operations $ 1,785 $ 1,632 $ 5,574 $ 4,442 Income (loss) from discontinued operations 6 8 (21) 1 Net income 1,791 1,640 5,553 4,443 Net income applicable to noncontrolling interests 10 43 85 130 Net income applicable to Morgan Stanley 1,781 1,597 5,468 4,313 Less: Preferred stock dividends and other (93) (79) (353) (314) Earnings applicable to Morgan Stanley common shareholders $ 1,688 $ 1,518 $ 5,115 $ 3,999 Weighted average common shares outstanding 1,776 1,838 1,789 1,863 Earnings per basic common share Income from continuing operations $ 0.95 $ 0.82 $ 2.87 $ 2.15 Income (loss) from discontinued operations — 0.01 (0.01) — Earnings per basic common share $ 0.95 $ 0.83 $ 2.86 $ 2.15 Diluted EPS Earnings applicable to Morgan Stanley common shareholders $ 1,688 $ 1,518 $ 5,115 $ 3,999 Weighted average common shares outstanding 1,776 1,838 1,789 1,863 Effect of dilutive securities: Stock options and RSUs 1 42 41 41 35 Weighted average common shares outstanding and common stock equivalents 1,818 1,879 1,830 1,898 Earnings per diluted common share Income from continuing operations $ 0.93 $ 0.80 $ 2.81 $ 2.11 Income (loss) from discontinued operations — 0.01 (0.02) — Earnings per diluted common share $ 0.93 $ 0.81 $ 2.79 $ 2.11 Weighted average antidilutive RSUs and stock options (excluded from the computation of diluted EPS) 1 — 14 — 15 1. Restricted stock units (“RSUs”) that are considered participating securities are treated as a separate class of securities in the computation of basic EPS, and, therefore, such RSUs are not included as incremental shares in the diluted EPS computations. |
Interest Income and Interest Ex
Interest Income and Interest Expense | 9 Months Ended |
Sep. 30, 2017 | |
Interest Income and Interest Expense | |
Interest Income and Interest Expense | 16. Inter est Income and Interest Expense Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Interest income 1 Investment securities $ 313 $ 289 $ 943 $ 762 Loans 853 698 2,399 2,026 Interest bearing deposits with banks 84 30 206 134 Securities purchased under agreements to resell and Securities borrowed 2 76 (118) 86 (315) Trading assets, net of Trading liabilities 506 526 1,461 1,651 Customer receivables and Other 3 508 309 1,316 890 Total interest income $ 2,340 $ 1,734 $ 6,411 $ 5,148 Interest expense 1 Deposits $ 63 $ 12 $ 88 $ 48 Short-term and Long-term borrowings 1,109 814 3,197 2,633 Securities sold under agreements to repurchase and Securities loaned 4 325 228 912 761 Customer payables and Other 5 60 (323) (91) (1,109) Total interest expense $ 1,557 $ 731 $ 4,106 $ 2,333 Net interest $ 783 $ 1,003 $ 2,305 $ 2,815 1. Interest income and Interest expense are classified in the income statements based on the nature of the instrument and related market conventions. When included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. 2. Includes fees paid on Securities borrowed . 3. Inclu des interest from customer receivables and cash deposited with clearing o rganizations or segregated under federal and other regulations or requirements . 4 . Includes fees received on Securities loaned. 5 . Includes fees received from prime brokerage customers for stock loan transactions incurred to cover customers’ short position s. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Employee Benefit Plans | |
Employee Benefit Plans | 17. Employee Benefit Plans The Firm sponsors various retirement plans for the majority of its U.S. and non-U.S. employees. The Firm provides certain other postretirement benefits, primarily health care and life insurance, to eligible U.S. employees. Components of the Net Periodic Benefit Expense (Income) for Pension and Other Postretirement Plans Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Service cost, benefits earned during the period $ 4 $ 6 $ 12 $ 14 Interest cost on projected benefit obligation 37 38 112 115 Expected return on plan assets (29) (31) (87) (91) Net amortization of prior service credit (4) (4) (12) (13) Net amortization of actuarial loss 4 3 12 9 Net periodic benefit expense (income) $ 12 $ 12 $ 37 $ 34 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Taxes | |
Income Taxes | 18. Income Taxes The Firm is under continuous examination by the Internal Revenue Service (the “IRS”) and other tax authorities in certain countries, such as Japan and the United Kingdom (“U.K.”), and in states in which it has significant business operations, such as New York. The Firm has established a liability for unrecognized tax benefits, and associated interest, if applicable (“tax liabilities”), that it believes is adequate in relation to the potential for additional assessments. Once established, the Firm adjusts such tax liabilities only when new information is available or when an event occurs necessitating a change. The Firm is currently at various levels of field examination with respect to audits by the IRS, as well as New York State and New York City, for tax years 2009-2012 and 2007-2014, respectively. 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. In June 2016, the Firm received an amended Revenue Agent’s Report for tax years 2006-2008. Over the next 12 months the Firm expects to receive new information related to multi-year IRS field audit examinations that may prompt an overall net decrease in the Firm’s recorded tax liabilities. The Firm believes that the resolution of the above tax matters will not have a material effect on the annual financial statements, although a resolution could have a material impact on the income statements and effective tax rate for any period in which such resolution occurs. In March 2017, the Firm filed claims with the IRS to contest certain items associated with tax years 1999-2005, the resolution of which is not expected to have a material impact on the annual financial statements or effective tax rate. Additionally, during 2017, the Firm expects to reach a conclusion with the U.K. tax authorities on substantially all issues through tax year 2010, the resolution of which is not expected to have a material impact on the annual financial statements or effective tax rate. See Note 11 regarding the Dutch Tax Authority’s challenge, in the District Court in Amsterdam (matters styled Case number 15/3637 and Case number 15/4353 ), of the Firm’s entitlement to certain withholding tax credits which may impact the balan ce of unrecognized tax benefits . |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment And Geographic Information | 19 . Segment and Geographic Information Segment Information For a discussion about the Firm’s business segments, see Note 21 to the consolidated financial statements in the 2016 Form 10-K . IS—Institutional Securities WM—Wealth Management IM—Investment Management I/E—Intersegment eliminations For further information on fee waiver amounts s ee the table below . For further information on net unrealized performance-based fee amounts see the table below . During the current year period, the Firm recorded a provision of $ 86 million for potential additional value - added tax , interest and penalties in relation to certain intercompany service activities provided to our U.K. group . Effective July 1, 2016, the Ins titutional Securities and Wealth Management business segments entered into an agreement, whereby Institutional Securities assumed management of Wealth Management’s fixed income client-driven trading activities and employees. Institutional Securities now pa ys fees to Wealth Management based on distribution activity (collectively, the “Fixed Income Integration”). Prior periods have not been recast for this new intersegment agreement due to immateriality. The Firm waives a portion of its fees in the Investment Management business segment from certain registered money market funds that comply with the requirements of Rule 2a-7 of the Investment Company Act of 1940. Reduction of Fees due to Fee Waivers Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Fee waivers $ 20 $ 26 $ 66 $ 61 In certain management fee arrangements, the Firm is entitled to receive performance-based fees (also referred to as incentive fees and includes carried interest) when the return on assets under management exceeds certain benchmark returns or other performance targets. In such arrangements, performance fee revenues are accrued (or reversed) quarterly based on measuring account/fund performance to date versus the performance benchmark stated in the investment management agreement. The Firm’s portion o f net unrealized cumulative performance-based fees (for which the Firm is not obligated to pay compensation) are at risk of reversing if the fund performance falls below the stated investment management agreement benchmarks. See Note 11 for information regarding general partner guarantees, which include potential obligations to return performance fee di stributions previously received. Net Unrealized Performance-based Fees $ in millions At September 30, 2017 At December 31, 2016 Net unrealized cumulative performance-based fees at risk of reversing $ 450 $ 397 Total Assets by Business Segment At September 30, At December 31, $ in millions 2017 2016 Institutional Securities $ 668,281 $ 629,149 Wealth Management 180,628 181,135 Investment Management 4,784 4,665 Total 1 $ 853,693 $ 814,949 C orporate assets have been fully allocated to the business segments. Geographic Information For a discussion about the Firm’s geographic net revenues, see Note 21 to the consolidated financial statements in the 2016 Form 10-K. Net Revenues by Region Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Americas $ 6,833 $ 6,624 $ 20,667 $ 18,914 EMEA 1,325 1,236 4,420 3,677 Asia-Pacific 1,039 1,049 3,358 3,019 Net revenues $ 9,197 $ 8,909 $ 28,445 $ 25,610 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events | |
Subsequent Events | 20 . Subsequent Events The Firm has evaluated subsequent events for adjustment to or disclosure in the financial statements through the date of this report and has not identified any r ecordable or disclosa ble events not otherwise reported in these financial statements or the notes thereto . |
Significant Accounting Polici28
Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2017 | |
Significant Accounting Policies | |
Accounting Standards Adopted | Accounting Standards Adopted The Firm adopted the following accounting update on January 1, 2017. Improvements to Employee Share-Based Payment Accounting . This accounting update simplifies the accounting for employee share-based payments, including the recognition of forfeitures, the classification of income tax consequences, and the classification within the consolidated cash flow statem ents (“cash flow statements”) . Beginning in 2017, the income tax consequences related to share-based payments are required to be recognized in Provision for income taxes in the income statements upon the conversion of employee share-based awards instead of additional paid-in capital. The impact of the income tax consequences upon conversion of the awards may be either a benefit or a provision. Conversion of employee share-based awards to Firm shares will primarily occur in the first quarter of each year. The impact of recognizing excess tax benefits upon conversion of awards in the quarter in which the accounting update was adopted (three months ended March 31, 2017) was a $ 112 million benefit to Provision for income taxes. The classification of cash flows from excess tax benefits was moved from the financing section to the operating section of the cash flow statements, and was applied on a retrospective basis. In addition, this accounting update permits an entity to elect whether to continue to estimate t he total forfeitures, or to account for forfeitures on an actual basis as they occur. The Firm has elected to account for forfeitures on an actual basis as they occur. This change is required to be applied using a modified retrospective approach, and upon adoption, the Firm recorded a cumulative catch-up a djustment, decreasing Retained e arnings by approximately $ 30 million net of tax, increasing A dditional paid-in capital by approximately $ 45 million and increasing deferred tax assets by approximately $ 15 m illion . |
Goodwill | Goodwill The Firm completed its annual goodwill impairment testing as of July 1, 2017. The Firm’s impairment testing 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. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis At September 30, 2017 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at Fair Value Trading assets: U.S. Treasury and agency securities $ 27,538 $ 23,186 $ — $ — $ 50,724 Other sovereign government obligations 2 25,428 6,201 104 — 31,733 Corporate and other debt: State and municipal securities — 2,123 10 — 2,133 MABS — 2,399 274 — 2,673 Corporate bonds — 14,164 419 — 14,583 CDO — 313 76 — 389 Loans and lending commitments 3 — 3,423 4,865 — 8,288 Other debt — 1,041 193 — 1,234 Total corporate and other debt — 23,463 5,837 — 29,300 Corporate equities 4 137,028 425 296 — 137,749 Derivative and other contracts: Interest rate 581 183,561 1,658 — 185,800 Credit — 8,527 377 — 8,904 Foreign exchange 93 53,842 47 — 53,982 Equity 1,056 44,986 3,402 — 49,444 Commodity and other 1,240 4,929 4,107 — 10,276 Netting 1 (2,896) (225,857) (1,853) (46,425) (277,031) Total derivative and other contracts 74 69,988 7,738 (46,425) 31,375 Investments 5 316 257 925 — 1,498 Physical commodities — 157 — — 157 Total trading assets 5 190,384 123,677 14,900 (46,425) 282,536 Investment securities— AFS 25,022 29,932 — — 54,954 Securities purchased under agreements to resell — 101 — — 101 Intangible assets — 3 — — 3 Total assets at fair value $ 215,406 $ 153,713 $ 14,900 $ (46,425) $ 337,594 At September 30, 2017 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at Fair Value Deposits $ — $ 68 $ 106 $ — $ 174 Short-term borrowings — 658 — — 658 Trading liabilities: US Treasury and agency securities 14,574 61 — — 14,635 Other sovereign government obligations 2 24,351 1,432 — — 25,783 Corporate and other debt: Corporate bonds — 7,044 6 — 7,050 Other debt — 342 2 — 344 Total corporate and other debt — 7,386 8 — 7,394 Corporate equities 4 54,778 157 51 — 54,986 Derivative and other contracts: Interest rate 478 165,399 582 — 166,459 Credit — 9,353 680 — 10,033 Foreign exchange 52 54,198 125 — 54,375 Equity 1,252 47,603 2,171 — 51,026 Commodity and other 1,233 3,879 2,573 — 7,685 Netting 1 (2,896) (225,857) (1,853) (34,533) (265,139) Total derivative and other contracts 119 54,575 4,278 (34,533) 24,439 Total trading liabilities 93,822 63,611 4,337 (34,533) 127,237 Securities sold under agreements to repurchase — 661 149 — 810 Other secured financings — 6,264 250 — 6,514 Long-term borrowings 35 43,593 2,603 — 46,231 Total liabilities at fair value $ 93,857 $ 114,855 $ 7,445 $ (34,533) $ 181,624 At December 31, 2016 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at Fair Value Trading assets: U.S. Treasury 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 MABS — 1,691 217 — 1,908 Corporate bonds — 11,051 232 — 11,283 CDO — 602 63 — 665 Loans and lending commitments 3 — 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 4 131,574 352 446 — 132,372 Derivative and other contracts: Interest rate 1,131 300,406 1,373 — 302,910 Credit — 11,727 502 — 12,229 Foreign exchange 231 74,921 13 — 75,165 Equity 1,185 35,736 1,708 — 38,629 Commodity and other 2,808 6,734 3,977 — 13,519 Netting 1 (4,378) (353,543) (1,944) (51,381) (411,246) Total derivative and other contracts 977 75,981 5,629 (51,381) 31,206 Investments 5 237 197 958 — 1,392 Physical commodities — 112 — — 112 Total trading assets 5 174,372 123,170 13,177 (51,381) 259,338 Investment securities— AFS 29,120 34,050 — — 63,170 Securities purchased under agreements to resell — 302 — — 302 Intangible assets — 3 — — 3 Total assets at fair value $ 203,492 $ 157,525 $ 13,177 $ (51,381) $ 322,813 At December 31, 2016 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at Fair Value Deposits $ — $ 21 $ 42 $ — $ 63 Short-term borrowings — 404 2 — 406 Trading liabilities: US Treasury and agency securities 11,636 61 — — 11,697 Other sovereign government obligations 20,658 2,430 — — 23,088 Corporate and other debt: Corporate bonds — 5,572 34 — 5,606 Other debt — 549 2 — 551 Total corporate and other debt — 6,121 36 — 6,157 Corporate equities 4 57,847 54 35 — 57,936 Derivative and other contracts: Interest rate 1,244 285,379 953 — 287,576 Credit — 12,550 875 — 13,425 Foreign exchange 17 75,510 56 — 75,583 Equity 1,162 37,828 1,524 — 40,514 Commodity and other 2,663 6,845 2,377 — 11,885 Netting 1 (4,378) (353,543) (1,944) (39,803) (399,668) Total derivative and other contracts 708 64,569 3,841 (39,803) 29,315 Physical commodities — 1 — — 1 Total trading liabilities 90,849 73,236 3,912 (39,803) 128,194 Securities sold under agreements to repurchase — 580 149 — 729 Other secured financings — 4,607 434 — 5,041 Long-term borrowings 47 36,677 2,012 — 38,736 Total liabilities at fair value $ 90,896 $ 115,525 $ 6,551 $ (39,803) $ 173,169 MABS — Mortgage- and asset-backed securities AFS—Available for sale CDO — Collateralized debt obligations, including collateralized loan obligations For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Netting.” P ositions classified within the same level that are with the same counterparty are netted within that level. For further information on derivative instruments and hedging activities, see Note 4. During the current year period , the Firm transferred from Level 2 to Level 1 $ 1.3 billion and $ 1.8 billion of Tra ding assets — Other sovereign government obligations and Trading liabilities — Other sovereign government obligations, respectively, due to increased market activity in these instruments. For further breakdown by type , see the following Loans and Lending Commitments a t Fair Value table. For trading purposes, the Firm holds or sells short equity securities issued by entities in diverse industries and of varying sizes. Amounts exclude certain investments that are measured at fair value using the net asset value (“ NAV ”) per share, which are not classified in the fair value hierarchy. For additional disclosure about such investments, see “Fair Value of Investments Measured at N AV ” herein . |
Loans and Lending Commitments at Fair Value | Loans and Lending Commitments at Fair Value $ in millions At September 30, 2017 At December 31, 2016 Corporate $ 6,441 $ 7,217 Residential real estate 690 966 Wholesale real estate 1,157 519 Total $ 8,288 $ 8,702 |
Unsettled Fair Value of Future Contracts | Unsettled Fair Value of Futures Contracts 1 $ in millions At September 30, 2017 At December 31, 2016 Long Customer and other receivables $ 977 $ 784 Short Customer and other payables $ 140 $ 174 These contracts are primarily Level 1, actively traded , valued based on quoted prices from the exchange and are excluded from the previous recurring fair value tables . |
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Current Quarter $ in millions Beginning Balance at June 30, 2017 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at September 30, 2017 Unrealized Gains (Losses) at September 30, 2017 Assets at Fair Value Trading assets: Other sovereign government obligations $ 100 $ 2 $ 86 $ (82) $ — $ (2) $ 104 $ 1 Corporate and other debt: State and municipal securities 9 — 4 (3) — — 10 — MABS 264 4 52 (54) — 8 274 1 Corporate bonds 449 29 120 (144) — (35) 419 27 CDO 58 7 20 (15) (4) 10 76 6 Loans and lending commitments 4,864 25 1,772 (1,431) (236) (129) 4,865 17 Other debt 186 5 80 (82) — 4 193 1 Total corporate and other debt 5,830 70 2,048 (1,729) (240) (142) 5,837 52 Corporate equities 500 (9) 24 (268) — 49 296 — Net derivative and other contracts 3 : Interest rate 970 105 13 (29) 33 (16) 1,076 92 Credit (305) (33) 7 (9) 35 2 (303) (33) Foreign exchange 2 (59) 9 — 17 (47) (78) (50) Equity 1,093 114 60 (77) 79 (38) 1,231 110 Commodity and other 1,509 158 1 (1) (112) (21) 1,534 45 Total net derivative and other contracts 3,269 285 90 (116) 52 (120) 3,460 164 Investments 946 (4) 13 (17) (16) 3 925 (5) Liabilities at Fair Value Deposits $ 79 $ (1) $ — $ 32 $ — $ (6) $ 106 $ (1) Trading liabilities: Corporate and other debt: Corporate bonds 13 (2) (18) 9 — — 6 (1) Other debt 2 — — — — — 2 — Total corporate and other debt 15 (2) (18) 9 — — 8 (1) Corporate equities 28 1 (10) 24 — 10 51 2 Securities sold under agreements to repurchase 148 (1) — — — — 149 (1) Other secured financings 244 (5) — 2 (1) — 250 (5) Long-term borrowings 2,646 (53) — 679 (49) (726) 2,603 (47) Loan originations and consolidations of VIEs are included in purchases and deconsolidations of VIEs are included in settlements. Amounts related to entering into Net derivatives and other contracts, Deposits, Short-term borrowings, Other secured financings and Long-term borrowings primarily represent issuances. Amounts for other line items primarily represent sales. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Prior Year Quarter $ in millions Beginning Balance at June 30, 2016 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at September 30, 2016 Unrealized Gains (Losses) at September 30, 2016 Assets at Fair Value Trading assets: U.S. Treasury and agency securities $ 20 $ — $ — $ (18) $ — $ 6 $ 8 $ — Other sovereign government obligations 2 — 6 (1) — 5 12 — Corporate and other debt: State and municipal securities 10 1 — (7) — — 4 — MABS 355 (7) 74 (156) — (2) 264 (15) Corporate bonds 276 (55) 20 (23) — (19) 199 (55) CDO 109 6 9 (38) — (1) 85 10 Loans and lending commitments 5,418 (12) 501 (206) (733) (813) 4,155 (12) Other debt 528 — 191 (212) — (261) 246 — Total corporate and other debt 6,696 (67) 795 (642) (733) (1,096) 4,953 (72) Corporate equities 572 (28) 43 (36) — (214) 337 (26) Net derivative and other contracts 3 : Interest rate (235) (60) 3 (15) 11 337 41 (45) Credit (1,114) 147 — — 2 82 (883) 147 Foreign exchange (1) (27) — — (42) (37) (107) (27) Equity (1,473) 220 31 (39) 567 834 140 239 Commodity and other 1,287 269 — (14) (170) (78) 1,294 104 Total net derivative and other contracts (1,536) 549 34 (68) 368 1,138 485 418 Investments 974 (41) 2 (8) (27) 36 936 (36) Liabilities at Fair Value Deposits $ 30 $ 1 $ — $ 5 $ — $ (3) $ 31 $ 1 Short-term borrowings — — — — — 2 2 — Trading liabilities: Corporate and other debt: Corporate bonds 6 (1) (3) 2 — 7 13 (1) Other debt 3 — — — — — 3 — Total corporate and other debt 9 (1) (3) 2 — 7 16 (1) Corporate equities 26 2 (2) 3 — (5) 20 — Securities sold under agreements to repurchase 150 1 — — — — 149 2 Other secured financings 441 (11) — — (2) — 450 (11) Long-term borrowings 1,929 (88) — 193 (147) (21) 2,042 (87) Loan originations and consolidations of VIEs are included in purchases and deconsolidations of VIEs are included in settlements. Amounts related to entering into Net derivatives and other contracts, Deposits, Short-term borrowings, Other secured financings and Long-term borrowings primarily represent issuances. Amounts for other line items primarily represent sales. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Current Year Period $ in millions Beginning Balance at December 31, 2016 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at September 30, 2017 Unrealized Gains (Losses) at September 30, 2017 Assets at Fair Value Trading assets: U.S. Treasury and agency securities $ 74 $ (1) $ — $ (240) $ — $ 167 $ — $ — Other sovereign government obligations 6 — 104 (5) — (1) 104 — Corporate and other debt: State and municipal securities 250 3 6 (81) — (168) 10 — MABS 217 49 120 (120) (16) 24 274 13 Corporate bonds 232 30 310 (205) — 52 419 (6) CDO 63 6 33 (18) (7) (1) 76 3 Loans and lending commitments 5,122 88 2,470 (1,927) (964) 76 4,865 85 Other debt 180 31 94 (160) — 48 193 6 Total corporate and other debt 6,064 207 3,033 (2,511) (987) 31 5,837 101 Corporate equities 446 8 74 (604) — 372 296 3 Net derivative and other contracts 3 : Interest rate 420 137 36 (42) 658 (133) 1,076 146 Credit (373) (18) 6 (9) 96 (5) (303) (34) Foreign exchange (43) (92) 9 — 48 — (78) (72) Equity 184 168 816 (231) 209 85 1,231 277 Commodity and other 1,600 523 13 (21) (431) (150) 1,534 88 Total net derivative and other contracts 1,788 718 880 (303) 580 (203) 3,460 405 Investments 958 16 96 (44) (78) (23) 925 10 Liabilities at Fair Value Deposits $ 42 $ (2) $ — $ 62 $ — $ — $ 106 $ (2) Short-term borrowings 2 — — — (2) — — — Trading liabilities: Corporate and other debt: Corporate bonds 34 (1) (54) 98 — (73) 6 — Other debt 2 — (1) 1 — — 2 — Total corporate and other debt 36 (1) (55) 99 — (73) 8 — Corporate equities 35 — (69) 27 — 58 51 (1) Securities sold under agreements to repurchase 149 — — — — — 149 1 Other secured financings 434 (28) — 54 (223) (43) 250 (21) Long-term borrowings 2,012 (142) — 1,418 (326) (643) 2,603 (136) Loan originations and consolidations of VIEs are included in purchases and deconsolidations of VIEs are included in settlements. Amounts related to entering into Net derivatives and other contracts, Deposits, Short-term borrowings, Other secured financings and Long-term borrowings primarily represent issuances. Amounts for other line items primarily represent sales. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Prior Year Period $ in millions Beginning Balance at December 31, 2015 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at September 30, 2016 Unrealized Gains (Losses) at September 30, 2016 Assets at Fair Value Trading assets: U.S. Treasury and agency securities $ — $ — $ 3 $ (37) $ — $ 42 $ 8 $ — Other sovereign government obligations 4 — 10 (6) — 4 12 — Corporate and other debt: State and municipal securities 19 — — (16) — 1 4 — MABS 438 (35) 88 (314) — 87 264 (31) Corporate bonds 267 (4) 146 (276) — 66 199 (17) CDO 430 9 13 (295) — (72) 85 16 Loans and lending commitments 5,936 (65) 921 (860) (986) (791) 4,155 (51) Other debt 448 1 92 (35) — (260) 246 65 Total corporate and other debt 7,538 (94) 1,260 (1,796) (986) (969) 4,953 (18) Corporate equities 434 (57) 62 (324) — 222 337 (80) Net derivative and other contracts 3 : Interest rate 260 257 3 (15) (59) (405) 41 (156) Credit (844) (255) 1 — 155 60 (883) (277) Foreign exchange 141 (104) — — (224) 80 (107) (102) Equity (2,031) 334 816 (168) 1,083 106 140 172 Commodity and other 1,050 377 33 (20) (312) 166 1,294 162 Total net derivative and other contracts (1,424) 609 853 (203) 643 7 485 (201) Investments 707 (60) 374 (37) (67) 19 936 (63) Intangible assets 5 — — — — (5) — — Liabilities at Fair Value Deposits $ 19 $ (1) $ — $ 15 $ — $ (4) $ 31 $ (1) Short-term borrowings 1 — — — (1) 2 2 — Trading liabilities: Corporate and other debt: Corporate bonds — (3) (7) 32 — (15) 13 (3) Other debt 4 — (1) — — — 3 — Total corporate and other debt 4 (3) (8) 32 — (15) 16 (3) Corporate equities 18 4 (37) 14 — 29 20 32 Securities sold under agreements to repurchase 151 2 — — — — 149 3 Other secured financings 461 (42) — 69 (44) (78) 450 (42) Long-term borrowings 1,987 (103) — 366 (262) (152) 2,042 91 Loan originations and consolidations of VIEs are included in purchases and deconsolidations of VIEs are included in settlements. Amounts related to entering into Net derivatives and other contracts, Deposits, Short-term borrowings, Other secured financings and Long-term borrowings primarily represent issuances. Amounts for other line items primarily represent sales. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . |
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements | Valuation Techniques and Sensitivity of Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Predominant Valuation Techniques/ Significant Unobservable Inputs Range (Weighted Average or Simple Average/Median) 1 $ in millions At September 30, 2017 At December 31, 2016 Recurring Fair Value Measurement Assets at Fair Value U.S. Treasury and agency securities ( $— and $74) Comparable pricing: Comparable bond price N/A 96 to 105 points (102 points) Predominant Valuation Techniques/ Significant Unobservable Inputs Range (Weighted Average or Simple Average/Median) 1 $ in millions At September 30, 2017 At December 31, 2016 Other sovereign government obligations ($104 and $6) Comparable pricing: Comparable bond price 86 to 97 points (88 points) N/M State and municipal securities ($10 and $250) Comparable pricing: Comparable bond price N/M 53 to 100 points (91 points) MABS ($274 and $217) Comparable pricing: Comparable bond price 0 to 100 points (33 points) 0 to 86 points (27 points) Corporate bonds ($419 and $232) Comparable pricing : Comparable bond price 3 to 132 points (60 points) 3 to 130 points (70 points) Discounted cash flow: Recovery rate 5% to 33% (25%) N/A Option model: At the money volatility 16% to 35% (25%) 23% to 33% (30%) CDO ($76 and $63) Comparable pricing : Comparable bond price 15 to 101 points (66 points) 0 to 103 points (50 points) Correlation model: Credit correlation 43% to 54% (51%) N/M Loans and lending commitments ($4,865 and $5,122) Corporate loan model: Credit spread N/M 402 to 672 bps (557 bps) Expected recovery: Asset coverage 37% to 100% (83%) 43% to 100% (83%) Margin loan model : Discount rate 1% to 3% (1%) 2% to 8% (3%) Volatility skew 8% to 43% (19%) 21% to 63% (33%) Comparable pricing: Comparable loan price 46 to 102 points (92 points) 45 to 100 points (84 points) Discounted cash flow: Implied weighted average cost of capital N/M 5% Capitalization rate N/M 4% to 10% (4%) Other debt ($193 and $180) Option model: At the money volatility 17% to 52% (47%) 16% to 52% (52%) Discounted cash flow: Discount rate 7% to 18% (9%) 7% to 12% (11%) Comparable pricing: Comparable loan price 1 to 5 points (2 points) 1 to 74 points (23 points) Corporate equities ($296 and $446) Comparable pricing: Comparable equity price 100% 100% Net derivative and other contracts 2 : Interest rate ($1,076 and $420) Option model : Interest rate - Foreign exchange correlation N/M 28% to 58% (44% / 43%) Interest rate volatility skew 29% to 106% (44% / 44%) 19% to 117% (55% / 56%) Interest rate quanto correlation N/M -17% to 31% (1% / -5%) Interest rate curve correlation 30% to 96% (75% / 78%) 28% to 96% (68% / 72%) Inflation volatility 24% to 64% (45% / 43%) 23% to 55% (40% / 39%) Interest rate curve 1% to 2% (1% / 1%) N/M Credit ($(303) and $(373)) Comparable pricing: Cash synthetic basis 14 to 15 points (14 points) 5 to 12 points (11 points) Comparable bond price 0 to 70 points (25 points) 0 to 70 points (23 points) Correlation model : Credit correlation 29% to 99% (51%) 32% to 70% (45%) Foreign exchange 3 ($(78) and $(43)) Option model: Interest rate - Foreign exchange correlation 27% to 59% (44% / 44%) 28% to 58% (44% / 43%) Interest rate volatility skew N/M 34% to 117% (55% / 56%) Contingency probability 95% N/M Interest rate quanto correlation N/M -17% to 31% (1% / -5%) Equity 3 ($1,231 and $184) Option model: At the money volatility 5% to 55% (36%) 7% to 66% (33%) Volatility skew -3% to 0% (-1%) -4% to 0% (-1%) Equity - Equity correlation 5% to 99% (73%) 25% to 99% (73%) Equity - Foreign exchange correlation -70% to 30% (-28%) -63% to 30% (-43%) Equity - Interest rate correlation -7% to 52% (17% / 21%) -8% to 52% (12% / 4%) Commodity and other($1,534 and $1,600) Option model: Forward power price $6 to $84 ($30) per MWh $7 to $90 ($32) per MWh Commodity volatility 5% to 56% (16%) 6% to 130% (18%) Cross-commodity correlation 5% to 99% (92%) 5% to 99% (92%) Predominant Valuation Techniques/ Significant Unobservable Inputs Range (Weighted Average or Simple Average/Median) 1 $ in millions At September 30, 2017 At December 31, 2016 Investments ($925 and $958) Discounted cash flow: Implied weighted average cost of capital N/M 10% Exit multiple N/M 10 to 24 times (11 times) Market approach: EBITDA multiple 6 to 24 times (12 times) 6 to 24 times (12 times) Comparable pricing : Comparable equity price 45% to 100% (90%) 75% to 100% (93%) Liabilities at Fair Value Deposits ($106 and $42) Option model: At the money volatility 15% to 37% (32%) N/M Volatility skew -1% to 0% (-1%) N/M Securities sold under agreements to repurchase ($149 and $149) Discounted cash flow: Funding spread 145 to 154 bps (151 bps) 118 to 127 bps (121 bps) Other secured financings ($250 and $434) Discounted cash flow: Funding spread 38 to 81 bps (60 bps) 63 to 92 bps (78 bps) Option model: Volatility skew -1% -1% At the money volatility 10% to 40% (25%) N/M Comparable pricing: Comparable bond price 14 to 58 points (30 points) N/M Discounted cash flow : Discount rate N/M 4% Long-term borrowings ($2,603 and $2,012) Option model : At the money volatility 5% to 35% (21%) 7% to 42% (30%) Volatility skew -3% to 0% (-1%) -2% to 0% (-1%) Equity - Equity correlation 36% to 98% (88%) 35% to 99% (84%) Equity - Foreign exchange correlation -51% to 10% (-32%) -63% to 13% (-40%) Option model : Interest rate volatility skew 29% to 106% (44% / 44%) 25% Equity volatility discount 8% to 11% (9% / 8%) 7% to 11% (10% / 10%) Interest rate - Foreign exchange correlation 21% to 22% (23% / 22%) N/M Comparable pricing: Comparable equity price 100% N/M Nonrecurring Fair Value Measurement Assets at Fair Value Loans ($1,448 and $2,443) Corporate loan model: Credit spread 86 to 563 bps (229 bps) 90 to 487 bps (208 bps) Expected recovery: Asset coverage 73% to 95% (84%) 73% to 99% (97%) bps—Basis points . One basis point equals 1/100 th of 1%. Point s— Percentage of par MWh — Megawatt hours EBITDA— Earnings before interest, taxes, depreciation and amortization N/A—Not Applicable N/M—Not Meaningful A mounts represent weighted averages except where simple averages and the median of the inputs are provided when more relevant . Credit valuation adjustment (“CVA”) and funding valuation adjustments (“FVA”) are included in the balance but excluded from the Valuation Technique(s) and Significant Unobservable Inputs in the previous table. CVA is a Level 3 input when the underlying counterparty credit curve is unobservable. FVA is a Level 3 input in its entirety given the lack of observability of funding spreads in the principal market . 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 September 30, 2017 At December 31, 2016 $ in millions Fair Value Commitment Fair Value Commitment Private equity $ 1,580 $ 359 $ 1,566 $ 335 Real estate 885 168 1,103 136 Hedge 1 87 4 147 4 Total $ 2,552 $ 531 $ 2,816 $ 475 Investments in hedge funds may be subject to initial period lock-up or gate provisions, which restrict an investor from withdrawing from the fund during a certain initial period or restrict the redemption amount on any redemption date, respectively. Nonredeemable Funds by Contractual Maturity Fair Value at September 30, 2017 $ in millions Private Equity Real Estate Less than 5 years $ 408 $ 77 5-10 years 1,005 490 Over 10 years 167 318 Total $ 1,580 $ 885 |
Earnings Impact of Instruments under the Fair Value Option | Earnings Impact of Instruments under the Fair Value Option Interest Trading Income $ in millions Revenues (Expense) Net Revenues Three Months Ended September 30, 2017 Securities purchased under agreements to resell $ (1) $ 1 $ ─ Deposits (1) ─ (1) Short-term borrowings (7) ─ (7) Securities sold under agreements to repurchase 6 (5) 1 Long-term borrowings (957) (107) (1,064) Three Months Ended September 30, 2016 Securities purchased under agreements to resell $ (1) $ 2 $ 1 Deposits 2 ─ 2 Short-term borrowings (39) ─ (39) Securities sold under agreements to repurchase 7 (4) 3 Long-term borrowings (1,068) (116) (1,184) Interest Trading Income $ in millions Revenues (Expense) Net Revenues Nine Months Ended September 30, 2017 Securities purchased under agreements to resell $ (2) $ 3 $ 1 Deposits (2) ─ (2) Short-term borrowings (16) (1) (17) Securities sold under agreements to repurchase 5 (13) (8) Long-term borrowings (3,468) (337) (3,805) Nine Months Ended September 30, 2016 Securities purchased under agreements to resell $ (2) $ 6 $ 4 Deposits (1) (1) (2) Short-term borrowings (3) ─ (3) Securities sold under agreements to repurchase (5) (9) (14) Long-term borrowings (3,322) (385) (3,707) |
Gains (Losses) Due to Changes in Instrument-Specific Credit Risk | Gains (Losses) Due to Changes in Instrument-Specific Credit Risk Three Months Ended September 30, 2017 2016 $ in millions Trading Revenues OCI Trading Revenues OCI Short-term and long-term borrowings 1 $ 9 $ (226) $ (5) $ (140) Securities sold under agreements to repurchase 1 ─ (3) ─ (3) Loans and other debt 2 49 ─ 26 ─ Lending commitments 3 ─ ─ ─ ─ Nine Months Ended September 30, 2017 2016 $ in millions Trading Revenues OCI Trading Revenues OCI Short-term and long-term borrowings 1 $ 1 $ (493) $ 36 $ 405 Securities sold under agreements to repurchase 1 ─ (6) ─ ─ Loans and other debt 2 94 ─ (88) ─ Lending commitments 3 ─ ─ 3 ─ $ in millions At September 30, 2017 At December 31, 2016 Cumulative pre-tax DVA gain (loss) recognized in AOCI $ (1,420) $ (921) OCI—Other comprehensive income (loss) 1. Unrealized DVA gains (losses) are recorded in OCI and , when realized, in Trading revenues . Se e Note 2 to the consolidated financial statements in the 2016 Form 10-K and Note 14 for further information. 2. Loans and other debt instrument-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses. 3. Gains (losses) on lending commitments were generally determined based on the differen ce between estimated expect ed client yields and contractual yields at each respective period-end. |
Short-term and Long-term Borrowings Measured at Fair Value on a Recurring Basis | Short-Term and Long-Term Borrowings Measured at Fair Value on a Recurring Basis At At September 30, December 31, $ in millions 2017 2016 Business Unit Responsible for Risk Management Equity $ 25,300 $ 21,066 Interest rates 19,822 16,051 Foreign exchange 782 1,114 Credit 753 647 Commodities 232 264 Total $ 46,889 $ 39,142 |
Net Difference of Contractual Principal Amount Over Fair Value | Excess of Contractual Principal Amount Over Fair Value At At September 30, December 31, $ in millions 2017 2016 Loans and other debt 1 $ 12,911 $ 13,495 Loans 90 or more days past due and/or on nonaccrual status 1 11,116 11,502 Short-term and long-term borrowings 2 906 720 1. The majority of the difference between principal and fair value amounts for loans and other debt relates to distressed debt positions purchased at amounts well below par. 2. Short-term and long-term borrowings do not include structured notes where the repayment of the initial principal amount fluctuates based on changes in a reference price or index |
Fair Value of Loans in Nonaccrual Status | Fair Value Loans on Nonaccrual Status At At September 30, December 31, $ in millions 2017 2016 Nonaccrual loans $ 1,429 $ 1,536 Nonaccrual loans 90 or more days past due $ 760 $ 787 |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | Gains (Losses) 1 Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Assets Loans 2 $ ─ $ 111 $ 41 $ 41 Other Assets—Other investments 3 (6) (3) (6) (44) Other assets—Premises, equipment and software costs 4 (1) (29) (7) (56) Intangible assets 5 ─ (2) ─ (2) Total $ (7) $ 77 $ 28 $ (61) Liabilities Other liabilities and accrued expenses — Lending commitments 2 $ 4 $ 52 $ 64 $ 98 Total $ 4 $ 52 $ 64 $ 98 Gains and losses for Loans and Other assets—Other investments are classified in Other revenues. For other items, gains and losses are recorded in Other revenues if the item is held for sale, otherwise in Other expenses. Non recurring changes in the fair value of loans and lending commitments were calculated as follows: for the held for investment category, based on the value of the underlying collateral; and for the held for sale category, based on recently executed transactions, market price quotations, 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 a nd recently executed transactions. Losses related to Other assets—Premises, equipment and software costs were determined using techniques that included a default recovery analysis and recently executed transactions . Losses related to Intangible assets were determined using techniques that included discounted cash flow models and methodologies that incorporate multiples of certain comparable companies. Carrying and Fair Values At September 30, 2017 Fair Value by Level $ in millions Total Level 2 Level 3 1 Assets Loans $ 2,713 $ 1,265 $ 1,448 Other Assets—Other investments 42 ─ 42 Total assets $ 2,755 $ 1,265 $ 1,490 Liabilities Other liabilities and accrued expenses— Lending commitments $ 196 $ 154 $ 42 Total liabilities $ 196 $ 154 $ 42 At December 31, 2016 Fair Value by Level $ in millions Total Level 2 Level 3 1 Assets Loans $ 4,913 $ 2,470 $ 2,443 Other assets—Other investments 123 ─ 123 Other assets—Premises, equipment and software costs 25 22 3 Total assets $ 5,061 $ 2,492 $ 2,569 Liabilities Other liabilities and accrued expenses— Lending commitments $ 226 $ 166 $ 60 Total liabilities $ 226 $ 166 $ 60 For significant Level 3 balan ces, r efer to “Significant Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements” section herein for details of the significant unobservable inputs used for nonrecurring fair value measurement. |
Financial Instruments Not Measured at Fair Value | At September 30, 2017 Carrying Fair Value $ in millions Value Level 1 Level 2 Level 3 Total Financial Assets Cash and due from banks $ 24,047 $ 24,047 $ — $ — $ 24,047 Interest bearing deposits with banks 24,144 24,144 — — 24,144 Investment securities— HTM 24,132 11,260 12,250 247 23,757 Securities purchased under agreements to resell 90,005 — 85,679 4,282 89,961 Securities borrowed 132,892 — 132,883 10 132,893 Customer and other receivables 1 48,579 — 44,340 4,115 48,455 Loans 2 104,431 — 19,476 86,223 105,699 Other assets 3 32,731 32,731 — — 32,731 Financial Liabilities Deposits $ 154,465 $ — $ 154,465 $ — $ 154,465 Short-term borrowings 429 — 429 — 429 Securities sold under agreements to repurchase 53,173 — 48,505 4,656 53,161 Securities loaned 15,630 — 15,240 402 15,642 Other secured financings 7,730 — 6,440 1,297 7,737 Customer and other payables 1 195,304 — 195,304 — 195,304 Long-term borrowings 145,446 — 150,625 39 150,664 At December 31, 2016 Carrying Fair Value $ in millions Value Level 1 Level 2 Level 3 Total Financial Assets Cash and due from banks $ 22,017 $ 22,017 $ — $ — $ 22,017 Interest bearing deposits with banks 21,364 21,364 — — 21,364 Investment securities— HTM 16,922 5,557 10,896 — 16,453 Securities purchased under agreements to resell 101,653 — 97,825 3,830 101,655 Securities borrowed 125,236 — 125,093 147 125,240 Customer and other receivables 1 41,679 — 36,962 4,575 41,537 Loans 2 94,248 — 20,906 74,121 95,027 Other assets 3 33,979 33,979 — — 33,979 Financial Liabilities Deposits $ 155,800 $ — $ 155,800 $ — $ 155,800 Short-term borrowings 535 — 535 — 535 Securities sold under agreements to repurchase 53,899 — 50,941 2,972 53,913 Securities loaned 15,844 — 15,853 — 15,853 Other secured financings 6,077 — 4,792 1,290 6,082 Customer and other payables 1 187,497 — 187,497 — 187,497 Long-term borrowings 126,039 — 129,826 51 129,877 HTM—Held to maturity Accrued interest, fees, and dividend receivables and payables where carrying value approximates fair value have been excluded. Amounts include loans measured at fair value on a non recurring basis . Cash deposited with clearing organizations or segregated under federal and other regulations or requirements. |
Lending Commitments-Held for investment and Held for sale | Lending Commitments—Held for Investment and Held for Sale Commitment Fair Value $ in millions amount 1 Total Level 2 Level 3 September 30, 2017 $ 96,939 $ 1,084 $ 636 $ 448 December 31, 2016 97,409 1,241 973 268 For further discussion on lending commitments, see Note 11. |
Derivative Instruments and He30
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Asset Fair Values | Derivative Fair Values At September 30, 2017 Assets $ in millions Bilateral OTC Cleared OTC 1 Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 1,380 $ 1 $ — $ 1,381 Foreign exchange contracts 93 9 — 102 Total 1,473 10 — 1,483 Not designated as accounting hedges Interest rate contracts 177,955 6,223 241 184,419 Credit contracts 6,599 2,305 — 8,904 Foreign exchange contracts 53,024 763 93 53,880 Equity contracts 26,915 — 22,529 49,444 Commodity and other contracts 8,117 — 2,159 10,276 Total 272,610 9,291 25,022 306,923 Total gross derivatives $ 274,083 $ 9,301 $ 25,022 $ 308,406 Amounts offset Counterparty netting (206,283) (6,917) (21,470) (234,670) Cash collateral netting (40,379) (1,982) — (42,361) Total in Trading assets $ 27,421 $ 402 $ 3,552 $ 31,375 Amounts not offset 2 Financial instruments collateral (12,241) — — (12,241) Other cash collateral (13) — — (13) Net amounts 3 $ 15,167 $ 402 $ 3,552 $ 19,121 Not subject to legally enforceable master netting or collateral agreements 3 Derivative assets $ 3,848 At December 31, 2016 Assets $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 1,924 $ 1,049 $ — $ 2,973 Foreign exchange contracts 249 18 — 267 Total 2,173 1,067 — 3,240 Not designated as accounting hedges Interest rate contracts 200,336 99,217 384 299,937 Credit contracts 9,837 2,392 — 12,229 Foreign exchange contracts 73,645 1,022 231 74,898 Equity contracts 20,710 — 17,919 38,629 Commodity and other contracts 9,792 — 3,727 13,519 Total 314,320 102,631 22,261 439,212 Total gross derivatives $ 316,493 $ 103,698 $ 22,261 $ 442,452 Amounts offset Counterparty netting (243,488) (100,477) (19,607) (363,572) Cash collateral netting (45,875) (1,799) — (47,674) Total in Trading assets $ 27,130 $ 1,422 $ 2,654 $ 31,206 Amounts not offset 2 Financial instruments collateral (10,293) — — (10,293) Other cash collateral (124) — — (124) Net amounts 3 $ 16,713 $ 1,422 $ 2,654 $ 20,789 Not subject to legally enforceable master netting or collateral agreements 3 Derivative assets $ 3,656 OTC—Over - the-counter 1. Effective in the first quarter of 2017, the Chicago Mercantile Exchange amended its rulebook for cleared OTC derivatives, resulting in the characterization of variation margin transfers as settlement payments as opposed to cash posted as collateral. In the quarter of adoption, the cleared OTC gross derivative assets and liabi lities, and related counterparty and cash collateral netting amounts in total decreased by approximately $ 13 billion and $ 20 billion, respectively. Effective in the third quarter of 2017, derivatives cleared through LCH Clearnet Limited became subject to t he rulebook under which variation margin transfers are settlement payments. As a result, cleared OTC gross derivative assets and liabilities, and related counterparty and cash collateral netting amounts in total decreased by approximately $ 62 billion and $ 59 billion, respectively. 2. Amounts relate to master netting agreements and collateral agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with appl icable offsetting accounting guidance . 3 . Net 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 enf orceable. |
Derivative Liability Fair Values | Liabilities $ in millions Bilateral OTC Cleared OTC 1 Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 66 $ — $ — $ 66 Foreign exchange contracts 47 21 — 68 Total 113 21 — 134 Not designated as accounting hedges Interest rate contracts 161,790 4,419 184 166,393 Credit contracts 7,475 2,558 — 10,033 Foreign exchange contracts 53,580 675 52 54,307 Equity contracts 29,189 — 21,837 51,026 Commodity and other contracts 5,596 — 2,089 7,685 Total 257,630 7,652 24,162 289,444 Total gross derivatives $ 257,743 $ 7,673 $ 24,162 $ 289,578 Amounts offset Counterparty netting (206,283) (6,917) (21,470) (234,670) Cash collateral netting (30,021) (448) — (30,469) Total in Trading liabilities $ 21,439 $ 308 $ 2,692 $ 24,439 Amounts not offset 2 Financial instruments collateral (5,035) — (497) (5,532) Other cash collateral (10) (81) — (91) Net amounts 3 $ 16,394 $ 227 $ 2,195 $ 18,816 Not subject to legally enforceable master netting or collateral agreements 3 Derivative liabilities $ 3,508 Liabilities $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 77 $ 647 $ — $ 724 Foreign exchange contracts 15 25 — 40 Total 92 672 — 764 Not designated as accounting hedges Interest rate contracts 183,063 103,392 397 286,852 Credit contracts 11,024 2,401 — 13,425 Foreign exchange contracts 74,575 952 16 75,543 Equity contracts 22,531 — 17,983 40,514 Commodity and other contracts 8,303 — 3,582 11,885 Total 299,496 106,745 21,978 428,219 Total gross derivatives $ 299,588 $ 107,417 $ 21,978 $ 428,983 Amounts offset Counterparty netting (243,488) (100,477) (19,607) (363,572) Cash collateral netting (30,405) (5,691) — (36,096) Total in Trading liabilities $ 25,695 $ 1,249 $ 2,371 $ 29,315 Amounts not offset 2 Financial instruments collateral (7,638) — (585) (8,223) Other cash collateral (10) (1) — (11) Net amounts 3 $ 18,047 $ 1,248 $ 1,786 $ 21,081 Not subject to legally enforceable master netting or collateral agreements 3 Derivative liabilities $ 3,497 OTC—Over - the-counter 1. Effective in the first quarter of 2017, the Chicago Mercantile Exchange amended its rulebook for cleared OTC derivatives, resulting in the characterization of variation margin transfers as settlement payments as opposed to cash posted as collateral. In the quarter of adoption, the cleared OTC gross derivative assets and liabi lities, and related counterparty and cash collateral netting amounts in total decreased by approximately $ 13 billion and $ 20 billion, respectively. Effective in the third quarter of 2017, derivatives cleared through LCH Clearnet Limited became subject to t he rulebook under which variation margin transfers are settlement payments. As a result, cleared OTC gross derivative assets and liabilities, and related counterparty and cash collateral netting amounts in total decreased by approximately $ 62 billion and $ 59 billion, respectively. 2. Amounts relate to master netting agreements and collateral agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with appl icable offsetting accounting guidance . 3 . Net 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 enf orceable. |
Derivative Notionals | Derivative Notionals At September 30, 2017 Assets $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 24 $ 44 $ — $ 68 Foreign exchange contracts 6 1 — 7 Total 30 45 — 75 Not designated as accounting hedges Interest rate contracts 3,952 6,675 2,880 13,507 Credit contracts 242 110 — 352 Foreign exchange contracts 2,224 77 30 2,331 Equity contracts 388 — 323 711 Commodity and other contracts 85 — 80 165 Total 6,891 6,862 3,313 17,066 Total gross derivatives $ 6,921 $ 6,907 $ 3,313 $ 17,141 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 2 $ 97 $ — $ 99 Foreign exchange contracts 3 1 — 4 Total 5 98 — 103 Not designated as accounting hedges Interest rate contracts 3,919 6,749 1,028 11,696 Credit contracts 271 92 — 363 Foreign exchange contracts 2,137 74 14 2,225 Equity contracts 409 — 381 790 Commodity and other contracts 67 — 69 136 Total 6,803 6,915 1,492 15,210 Total gross derivatives $ 6,808 $ 7,013 $ 1,492 $ 15,313 At December 31, 2016 Assets $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 30 $ 38 $ — $ 68 Foreign exchange contracts 6 — — 6 Total 36 38 — 74 Not designated as accounting hedges Interest rate contracts 3,586 6,224 2,586 12,396 Credit contracts 333 112 — 445 Foreign exchange contracts 1,580 52 13 1,645 Equity contracts 338 — 242 580 Commodity and other contracts 67 — 79 146 Total 5,904 6,388 2,920 15,212 Total gross derivatives $ 5,940 $ 6,426 $ 2,920 $ 15,286 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 2 $ 52 $ — $ 54 Foreign exchange contracts 1 1 — 2 Total 3 53 — 56 Not designated as accounting hedges Interest rate contracts 3,462 6,087 897 10,446 Credit contracts 359 96 — 455 Foreign exchange contracts 1,557 48 14 1,619 Equity contracts 321 — 273 594 Commodity and other contracts 78 — 59 137 Total 5,777 6,231 1,243 13,251 Total gross derivatives $ 5,780 $ 6,284 $ 1,243 $ 13,307 |
Gains (Losses) on Fair Value Hedges | Gains (Losses) on Fair Value Hedges Recognized in Interest Expense Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Derivatives $ (218) $ (733) $ (878) $ 2,386 Borrowings 175 790 670 (2,492) Total $ (43) $ 57 $ (208) $ (106) |
Gains (Losses) on Net Investment Hedges | Gains (Losses) on Net Investment Hedges Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Foreign exchange contracts Effective portion—OCI $ (88) $ (60) $ (340) $ (396) Forward points excluded from hedge effectiveness testing—Interest income $ (3) $ (20) $ (22) $ (59) |
Trading Revenues by Product Type | Trading Revenues by Product Type Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Interest rate contracts $ 648 $ 357 $ 1,693 $ 983 Foreign exchange contracts 181 170 613 769 Equity security and index contracts 1 1,416 1,415 4,875 4,360 Commodity and other contracts 223 63 522 (61) Credit contracts 236 604 1,167 1,369 Total $ 2,704 $ 2,609 $ 8,870 $ 7,420 1. Dividend income is included within equity security and index contracts. |
Credit Risk-Related Contingencies | Net Derivative Liabilities and Collat eral Posted $ in millions At September 30, 2017 At December 31, 2016 Net derivative liabilities with credit risk-related contingent features $ 19,359 $ 22,939 Collateral posted 14,499 17,040 Incremental Collateral or Termination Payments upon Potential Future Ratings Downgrade $ in millions At September 30, 2017 1 One-notch downgrade $ 592 Two-notch downgrade 512 1. Amounts include $ 873 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 | Protection Sold and Purchased with Credit Default Swaps At September 30, 2017 Protection Sold Protection Purchased $ in millions Notional Fair Value (Asset)/ Liability Notional Fair Value (Asset)/ Liability Credit default swaps Single name $ 173,202 $ (1,400) $ 189,290 $ 1,803 Index and basket 145,107 (237) 141,565 264 Tranched index and basket 22,049 (367) 44,193 1,066 Total $ 340,358 $ (2,004) $ 375,048 $ 3,133 Portion of single name and non-tranched index and basket with identical underlying reference obligations $ 315,931 — $ 327,959 — 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 Portion of single name and non-tranched index and basket with identical underlying reference obligations $ 395,536 — $ 389,221 — Credit Ratings of Reference Obligation and Maturities of Credit Protection Sold At September 30, 2017 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Single name credit default swaps Investment grade $ 46,372 $ 44,877 $ 21,662 $ 11,411 $ 124,322 $ (1,220) Non-investment grade 20,527 19,378 6,959 2,016 48,880 (180) Total single name credit default swaps 66,899 64,255 28,621 13,427 173,202 (1,400) Index and basket credit default swaps Investment grade 23,097 13,752 28,918 19,124 84,891 (885) Non-investment grade 28,650 7,293 25,129 21,193 82,265 281 Total index and basket credit default swaps 51,747 21,045 54,047 40,317 167,156 (604) Total credit default swaps sold $ 118,646 $ 85,300 $ 82,668 $ 53,744 $ 340,358 $ (2,004) Other credit contracts 14 — — 135 149 13 Total credit derivatives and other credit contracts $ 118,660 $ 85,300 $ 82,668 $ 53,879 $ 340,507 $ (1,991) At December 31, 2016 Maximum Potential Payout/Notional Fair Value (Asset)/ Liability Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Single name credit default swaps 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 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) |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investment securities | |
Schedule of AFS and HTM Securities | AFS and HTM Securities At September 30, 2017 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 24,706 $ — $ 425 $ 24,281 U.S. agency securities 1 24,018 42 164 23,896 Total U.S. government and agency securities 48,724 42 589 48,177 Corporate and other debt: CMBS: Agency 1,452 2 42 1,412 Non-agency 1,215 4 7 1,212 Corporate bonds 1,486 13 7 1,492 CLO 434 1 — 435 FFELP student loan ABS 2 2,217 13 8 2,222 Total corporate and other debt 6,804 33 64 6,773 Total AFS debt securities 55,528 75 653 54,950 AFS equity securities 15 — 11 4 Total AFS securities 55,543 75 664 54,954 HTM securities U.S. government and agency securities: U.S. Treasury securities 11,501 7 249 11,259 U.S. agency securities 1 12,384 18 151 12,251 Total U.S. government and agency securities 23,885 25 400 23,510 Corporate and other debt: CMBS: Non-agency 247 1 1 247 Total corporate and other debt 247 1 1 247 Total HTM securities 24,132 26 401 23,757 Total investment securities $ 79,675 $ 101 $ 1,065 $ 78,711 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: CMBS: Agency 1,850 2 44 1,808 Non-agency 2,250 11 16 2,245 Auto loan ABS 1,509 1 1 1,509 Corporate bonds 3,836 7 22 3,821 CLO 540 — 1 539 FFELP student loan ABS 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 and agency 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 CMBS—Commercial mortgage-backed securities CLO—Collateralized loan obligations ABS—Asset-backed securities U.S. agency securities consist mainly of agency-issued debt, agency mortgage pass-through pool securities and collateralized mortgage obligations. FFELP Federal Family Education Loan Program. Amounts are backed by a guarantee from the U.S. Department of Education of at least 95 % of the principal balance and interest on such loans |
Schedule of Investment Securities in an Unrealized Loss Position | Investment Securities in an Unrealized Loss Position At September 30, 2017 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities U.S. government and agency securities: U.S. Treasury securities $ 21,910 $ 364 $ 2,371 $ 61 $ 24,281 $ 425 U.S. agency securities 10,737 136 1,431 28 12,168 164 Total U.S. government and agency securities 32,647 500 3,802 89 36,449 589 Corporate and other debt: CMBS: Agency 991 42 — — 991 42 Non-agency 192 2 571 5 763 7 Corporate bonds 186 1 332 6 518 7 FFELP student loan ABS 1,058 8 — — 1,058 8 Total corporate and other debt 2,427 53 903 11 3,330 64 Total AFS debt securities 35,074 553 4,705 100 39,779 653 AFS equity securities — — 4 11 4 11 Total AFS securities 35,074 553 4,709 111 39,783 664 HTM securities U.S. government and agency securities: U.S. Treasury securities 9,848 249 — — 9,848 249 U.S. agency securities 10,084 151 — — 10,084 151 Total U.S. government and agency securities 19,932 400 — — 19,932 400 Corporate and other debt: CMBS: Non-agency 71 1 — — 71 1 Total corporate and other debt 71 1 — — 71 1 Total HTM securities 20,003 401 — — 20,003 401 Total investment securities $ 55,077 $ 954 $ 4,709 $ 111 $ 59,786 $ 1,065 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: CMBS: Agency 1,245 44 — — 1,245 44 Non-agency 763 11 594 5 1,357 16 Auto loan ABS 659 1 123 — 782 1 Corporate bonds 2,050 21 142 1 2,192 22 CLO 178 — 239 1 417 1 FFELP student loan ABS 2,612 61 — — 2,612 61 Total corporate and other debt 7,507 138 1,098 7 8,605 145 Total AFS debt securities 49,590 961 1,223 7 50,813 968 AFS equity securities 6 9 — — 6 9 Total AFS securities 49,596 970 1,223 7 50,819 977 HTM securities U.S. government and agency securities: U.S. Treasury securities 5,057 283 — — 5,057 283 U.S. agency securities 10,612 188 — — 10,612 188 Total HTM securities 15,669 471 — — 15,669 471 Total investment securities $ 65,265 $ 1,441 $ 1,223 $ 7 $ 66,488 $ 1,448 |
Schedule of Investment Securities by Contractual Maturity | Investment Securities by Contractual Maturity At September 30, 2017 $ in millions Amortized Cost Fair Value Annualized Average Yield AFS debt securities U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 5,300 $ 5,286 0.9% After 1 year through 5 years 14,129 13,954 1.4% After 5 years through 10 years 5,277 5,041 1.5% Total 24,706 24,281 U.S. agency securities: Due within 1 year 1,300 1,302 0.2% After 1 year through 5 years 2,570 2,564 0.9% After 5 years through 10 years 1,250 1,246 1.9% After 10 years 18,898 18,784 1.8% Total 24,018 23,896 Total U.S. government and agency securities 48,724 48,177 1.5% Corporate and other debt: CMBS: Agency: Due within 1 year 18 18 1.1% After 1 year through 5 years 283 282 1.4% After 5 years through 10 years 300 301 1.2% After 10 years 851 811 1.6% Total 1,452 1,412 Non-agency: After 5 years through 10 years 36 35 2.5% After 10 years 1,179 1,177 1.8% Total 1,215 1,212 Corporate bonds: Due within 1 year 46 46 1.2% After 1 year through 5 years 1,218 1,225 2.4% After 5 years through 10 years 222 221 2.3% Total 1,486 1,492 CLO: After 5 years through 10 years 236 236 1.5% After 10 years 198 199 2.4% Total 434 435 FFELP student loan ABS: After 1 year through 5 years 52 51 0.8% After 5 years through 10 years 393 390 0.8% After 10 years 1,772 1,781 1.1% Total 2,217 2,222 Total corporate and other debt 6,804 6,773 1.6% Total AFS debt securities 55,528 54,950 1.5% AFS equity securities 15 4 ― % Total AFS securities 55,543 54,954 1.5% HTM securities U.S. government securities: U.S. Treasury securities: Due within 1 year 300 300 0.6% After 1 year through 5 years 5,163 5,151 1.5% After 5 years through 10 years 5,311 5,157 1.9% After 10 years 727 651 2.3% Total 11,501 11,259 U.S. agency securities: After 10 years 12,384 12,251 2.4% Total 12,384 12,251 Total U.S. government and agency securities 23,885 23,510 2.0% Corporate and other debt: CMBS: Non-agency: After 1 year through 5 years 99 99 3.6% After 5 years through 10 years 148 148 3.7% Total 247 247 Total corporate and other debt 247 247 3.7% Total HTM securities 24,132 23,757 2.1% Total investment securities $ 79,675 $ 78,711 1.7% |
Schedule of Gross Realized Gains and Losses on Sales of AFS Securities | Gross Realized Gains and Losses on Sales of AFS Securities Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Gross realized gains $ 11 $ 45 $ 38 $ 130 Gross realized (losses) — — (11) (3) Total $ 11 $ 45 $ 27 $ 127 |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Collateralized Transactions | |
Schedule of Offsetting of Certain Collaterized Transactions | Offsetting of Certain Collateralized Transactions At September 30, 2017 $ in millions Gross Amounts Amounts Offset Net Amounts Presented Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 174,387 $ (84,281) $ 90,106 $ (84,895) $ 5,211 Securities borrowed 145,923 (13,031) 132,892 (128,616) 4,276 Liabilities Securities sold under agreements to repurchase $ 138,264 $ (84,281) $ 53,983 $ (46,145) $ 7,838 Securities loaned 28,662 (13,032) 15,630 (15,550) 80 Not subject to legally enforceable master netting agreements 2 Securities purchased under agreements to resell $ 4,599 Securities borrowed 720 Securities sold under agreements to repurchase 6,521 Securities loaned 7 At December 31, 2016 $ in millions Gross Amounts Amounts Offset Net Amounts Presented Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 182,888 $ (80,933) $ 101,955 $ (93,365) $ 8,590 Securities borrowed 129,934 (4,698) 125,236 (118,974) 6,262 Liabilities Securities sold under agreements to repurchase $ 135,561 $ (80,933) $ 54,628 $ (47,933) $ 6,695 Securities loaned 20,542 (4,698) 15,844 (15,670) 174 Not subject to legally enforceable master netting agreements 2 Securities purchased under agreements to resell $ 7,765 Securities borrowed 2,591 Securities sold under agreements to repurchase 6,500 Securities loaned 154 1. Amounts relate to master netting agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. 2. Represents amounts within Net Amounts related to transactions that are either not subject to master netting agreements or are subject to such agreements but the Firm has not determined the agreements to be legally enforceable . For information related to of fsetting of derivatives, see Note 4 . |
Schedule of Gross Secured Financing Balances | Maturities and Collateral Pledged Gross Secured Financing Balances by Remaining Contractual Maturity At September 30, 2017 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase $ 38,581 $ 38,455 $ 18,398 $ 42,830 $ 138,264 Securities loaned 17,274 541 1,426 9,421 28,662 Total included in the offsetting disclosure $ 55,855 $ 38,996 $ 19,824 $ 52,251 $ 166,926 Trading liabilities ― Obligation to return securities received as collateral 21,208 — — — 21,208 Total $ 77,063 $ 38,996 $ 19,824 $ 52,251 $ 188,134 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 $ 41,549 $ 36,703 $ 24,648 $ 32,661 $ 135,561 Securities loaned 9,487 851 2,863 7,341 20,542 Total 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 Gross Secured Financing Balances by Class of Collateral Pledged $ in millions At September 30, 2017 At December 31, 2016 Securities sold under agreements to repurchase U.S. government and agency securities $ 40,758 $ 56,372 State and municipal securities 828 1,363 Other sovereign government obligations 64,529 42,790 Asset-backed securities 2,267 1,918 Corporate and other debt 8,244 9,086 Corporate equities 20,773 23,152 Other 865 880 Total securities sold under agreements to repurchase $ 138,264 $ 135,561 Securities loaned Other sovereign government obligations 13,259 4,762 Corporate and other debt 9 73 Corporate equities 15,152 15,693 Other 242 14 Total securities loaned $ 28,662 $ 20,542 Total included in the offsetting disclosure $ 166,926 $ 156,103 Trading liabilities ― Obligation to return securities received as collateral Corporate equities $ 21,208 $ 20,262 Total $ 188,134 $ 176,365 |
Schedule of Trading Assets Pledged | Carrying Value of Assets Loaned or Pledged without Counterparty Right to Sell or Repledge $ in millions At September 30, 2017 At December 31, 2016 Trading assets $ 37,800 $ 41,358 Loans (gross of allowance for loan losses) 570 — Total $ 38,370 $ 41,358 |
Schedule of Fair Value of Collateral Received with Right to Sell or Repledge | Fair Value of Collateral Received with Right to Sell or Repledge $ in millions At September 30, 2017 At December 31, 2016 Collateral received with right to sell or repledge $ 575,915 $ 561,239 Collateral that was sold or repledged 470,555 430,911 |
Schedule of Customer Margin Lending and Other | Customer Margin Lending and Other $ in millions At September 30, 2017 At December 31, 2016 Net customer receivables representing margin loans $ 28,609 $ 24,359 |
Schedule of Cash and Securities Deposited with Clearing Organizations or Segregated | Cash and Securities Deposited with Clearing Organizations or Segregated $ in millions At September 30, 2017 At December 31, 2016 Segregated securities 1 $ 17,491 $ 23,756 Other assets―Cash deposited with clearing organizations or segregated under federal and other regulations or requirements 32,731 33,979 Total $ 50,222 $ 57,735 Securities segregated under federal regulations for the Firm’s U.S. broker-dealers are sourced from Securities purchased under agreements to resell and Trading assets in the balance sheets. |
Loans and Allowance for Credi33
Loans and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans Held for Investment and Held for Sale | Loans by Type At September 30, 2017 $ in millions Loans Held for Investment Loans Held for Sale Total Loans Corporate loans $ 29,686 $ 12,524 $ 42,210 Consumer loans 26,616 — 26,616 Residential real estate loans 26,150 60 26,210 Wholesale real estate loans 9,000 640 9,640 Total loans, gross 91,452 13,224 104,676 Allowance for loan losses (245) — (245) Total loans, net $ 91,207 $ 13,224 $ 104,431 At December 31, 2016 $ in millions Loans Held for Investment Loans Held for Sale Total Loans Corporate loans $ 25,025 $ 10,710 $ 35,735 Consumer loans 24,866 — 24,866 Residential real estate loans 24,385 61 24,446 Wholesale real estate loans 7,702 1,773 9,475 Total loans, gross 81,978 12,544 94,522 Allowance for loan losses (274) — (274) Total loans, net $ 81,704 $ 12,544 $ 94,248 Loans by Interest Rate Type $ in millions At September 30, 2017 At December 31, 2016 Fixed $ 13,323 $ 11,895 Floating or adjustable 91,108 82,353 Total loans, net $ 104,431 $ 94,248 Loans to Non-U.S. Borrowers $ in millions At September 30, 2017 At December 31, 2016 Loans, net of allowance $ 8,883 $ 9,388 |
Loans Held for Investment Before Allowance by Credit Quality | Loans Held for Investment before Allowance by Credit Quality At September 30, 2017 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 28,735 $ 26,613 $ 26,092 $ 8,435 $ 89,875 Special mention 435 3 — 250 688 Substandard 509 — 58 315 882 Doubtful 7 — — — 7 Loss — — — — — Total $ 29,686 $ 26,616 $ 26,150 $ 9,000 $ 91,452 At December 31, 2016 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 23,409 $ 24,853 $ 24,345 $ 7,294 $ 79,901 Special mention 288 13 — 218 519 Substandard 1,259 — 40 190 1,489 Doubtful 69 — — — 69 Loss — — — — — Total $ 25,025 $ 24,866 $ 24,385 $ 7,702 $ 81,978 |
Impaired Loans and Lending Commitments Before Allowance | Impaired Loans and Lending Commitments Before Allowance At September 30, 2017 $ in millions Corporate Residential Real Estate Total Loans With allowance $ 15 $ — $ 15 Without allowance 1 146 46 192 Unpaid principal balance 2 170 47 217 Lending Commitments With allowance $ 1 $ — $ 1 Without allowance 1 221 — 221 At December 31, 2016 $ in millions Corporate Residential Real Estate Total Loans With allowance $ 104 $ — $ 104 Without allowance 1 206 35 241 Unpaid principal balance 2 316 38 354 Lending Commitments With allowance $ — $ — $ — Without allowance 1 89 — 89 At September 30, 2017 and December 31, 2016 , no allowance was recorded for these loans and lending commitments as the present value of the expected future cash flows (or, alternatively, the observable market price of the instrument 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 without allowance due to various factors, including charge- offs and net deferred loan fees or costs. |
Impaired Loans and Allowance by Region | Impaired Loans and Allowance by Region At September 30, 2017 $ in millions Americas EMEA Asia-Pacific Total Impaired loans $ 188 $ 9 $ 10 $ 207 Allowance for loan losses 209 33 3 245 At December 31, 2016 $ in millions Americas EMEA Asia-Pacific Total Impaired loans $ 320 $ 9 $ 16 $ 345 Allowance for loan losses 245 28 1 274 EMEA—Europe, Middle East and Africa |
Troubled Debt Restructurings | Troubled Debt Restructurings $ in millions At September 30, 2017 At December 31, 2016 Loans $ 69 $ 67 Lending commitments 11 14 Allowance for loan losses 10 — |
Allowance for Loan Losses and Lending Commitments Rollforward | Allowance for Loan Losses Rollforward Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2016 $ 195 $ 4 $ 20 $ 55 $ 274 Gross charge-offs (75) — — — (75) Recoveries 1 — — — 1 Net recoveries (charge-offs) (74) — — — (74) Provision (release) 1 26 — 4 12 42 Other 2 — — 1 3 September 30, 2017 $ 149 $ 4 $ 24 $ 68 $ 245 Inherent $ 142 $ 4 $ 24 $ 68 $ 238 Specific 7 — — — 7 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2015 $ 166 $ 5 $ 17 $ 37 $ 225 Gross charge-offs (15) — — — (15) Gross recoveries — — — — — Net recoveries (charge-offs) (15) — — — (15) Provision (release) 1 120 (2) 3 8 129 Other 2 (52) — — — (52) September 30, 2016 $ 219 $ 3 $ 20 $ 45 $ 287 Inherent $ 142 $ 3 $ 20 $ 45 $ 210 Specific 77 — — — 77 The Firm recorded provisions of $ 13 million and $ 1 million for loan losses for the current quarter and prior year quarter, respectively. Amount includes the impact related to the transfer to loans held for sale and foreign currency translation adjustments. Allowance for Lending Commitments Rollforward Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2016 $ 185 $ 1 $ — $ 4 $ 190 Provision (release) 1 (10) — — — (10) Other 1 — — — 1 September 30, 2017 $ 176 $ 1 $ — $ 4 $ 181 Inherent $ 173 $ 1 $ — $ 4 $ 178 Specific 3 — — — 3 Corporate Consumer Residential Real Estate Wholesale Real Estate $ in millions Total December 31, 2015 $ 180 $ 1 $ — $ 4 $ 185 Provision (release) 1 9 — — — 9 Other (7) — — — (7) September 30, 2016 $ 182 $ 1 $ — $ 4 $ 187 Inherent $ 180 $ 1 $ — $ 4 $ 185 Specific 2 — — — 2 The Firm recorded a release of $ 6 million , and a provision of $ 6 million for lending commitments for the current quarter and prior year quarter, respectively. |
Employee Loans | Employee Loans $ in millions At September 30, 2017 At December 31, 2016 Balance $ 4,317 $ 4,804 Allowance for loan losses (79) (89) Balance, net $ 4,238 $ 4,715 Repayment term range, in years 1 to 20 1 to 12 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments | |
Schedule of Equity Method Investments | Equity Method Investment Balances $ in millions At September 30, 2017 At December 31, 2016 Investments $ 2,766 $ 2,837 Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Income (loss) $ — $ (40) $ — $ (39) |
MUMSS | |
Equity Method Investments | |
Schedule of Equity Method Investments | Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Income from investment in MUMSS $ 25 $ 26 $ 96 $ 83 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Deposits [Abstract] | |
Deposits | Deposits At September 30, At December 31, $ in millions 2017 2016 Savings and demand deposits $ 140,707 $ 154,559 Time deposits 1 13,932 1,304 Total 2 $ 154,639 $ 155,863 Deposits subject to FDIC insurance $ 121,896 $ 127,992 Time deposits that equal or exceed the FDIC insurance limit $ 10 $ 46 |
Interest Bearing Time Deposits Maturities | Interest Bearing Time Deposit Maturities $ in millions At September 30, 2017 2017 $ 3,447 2018 9,456 2019 861 2020 — 2021 8 Thereafter 160 FDIC—Federal Deposit Insurance Corporation Certain time deposit accounts are carried at fair value under the fair value option (see Note 3). Deposits were primarily held in the U.S. |
Long-Term Borrowings and Othe36
Long-Term Borrowings and Other Secured Financings (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Borrowings and Other Secured Financings | |
Schedule of Long-term Borrowings by Type and Rates | $ in millions At September 30, 2017 At December 31, 2016 Senior $ 181,336 $ 154,472 Subordinated 10,341 10,303 Total $ 191,677 $ 164,775 Weighted average stated maturity, in years 6.7 5.9 |
Schedule of Other Secured Financings | Other Secured Financings by Original Maturity and Type $ in millions At September 30, 2017 At December 31, 2016 Secured financings Original maturities: Greater than one year $ 11,037 $ 9,404 One year or less 2,349 1,429 Failed sales 1 858 285 Total $ 14,244 $ 11,118 For more information o n failed sales, see Note 12. |
Commitments, Guarantees and C37
Commitments, Guarantees and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments, Guarantees and Contingencies [Abstract] | |
Commitments by Years to Maturity | Years to Maturity at September 30, 2017 Less $ in millions than 1 1-3 3-5 Over 5 Total Lending: Corporate $ 13,001 $ 30,194 $ 44,669 $ 4,122 $ 91,986 Consumer 6,182 — 2 3 6,187 Residential real estate 17 39 70 273 399 Wholesale real estate 124 281 114 232 751 Forward-starting secured financing receivables 1 68,538 — — — 68,538 Investment activities 504 180 55 259 998 Letters of credit and other financial guarantees 157 1 1 44 203 Total $ 88,523 $ 30,695 $ 44,911 $ 4,933 $ 169,062 Corporate lending commitments participated to third parties $ 6,335 Forward-starting secured financing receivables settled within three business days 1 $ 60,013 1. Represents forward-starting securities purchased under agreements to resell and securities borrowed agreements. |
Obligations under Guarantee Arrangements | Obligations under Guarantee Arrangements at September 30, 2017 Maximum Potential Payout/Notional Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Credit derivatives $ 118,646 $ 85,300 $ 82,668 $ 53,744 $ 340,358 Other credit contracts 14 — — 135 149 Non-credit derivatives 1,592,809 1,029,404 374,956 573,755 3,570,924 Standby letters of credit and other financial guarantees issued 1 782 909 1,406 4,956 8,053 Market value guarantees 40 62 69 — 171 Liquidity facilities 3,237 — — — 3,237 Whole loan sales guarantees — — 1 23,260 23,261 Securitization representations and warranties — — — 58,423 58,423 General partner guarantees 34 49 332 25 440 Carrying Amount (Asset)/ Liability Collateral/ Recourse $ in millions Credit derivatives 2 $ (2,004) $ — Other credit contracts 13 — Non-credit derivatives 2 38,611 — Standby letters of credit and other financial guarantees issued 1 (186) 6,593 Market value guarantees 1 4 Liquidity facilities (5) 5,342 Whole loan sales guarantees 8 — Securitization representations and warranties 91 — General partner guarantees 53 — 1. These amounts include certain issued standby letters of credit participated to third parties , totaling $ 0.7 billion of notional and collateral/recourse, due to the nature of the Firm’s obligations under these arrangements . 2. Carrying amounts of derivative contracts are shown on a gross basis prior to cash collateral or counterparty netting. For further information on derivative contracts, see Note 4. |
Variable Interest Entities an38
Variable Interest Entities and Securitization Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Securitization Activities and Variable Interest Entities [Abstract] | |
Consolidated VIEs | Assets and Liabilities by Type of Activity At September 30, 2017 At December 31, 2016 $ in millions VIE Assets VIE Liabilities VIE Assets VIE Liabilities Credit-linked notes $ 100 $ — $ 501 $ — Other structured financings 398 3 602 10 MABS 1 90 69 397 283 Other 2 1,156 260 910 25 Total $ 1,744 $ 332 $ 2,410 $ 318 Amounts in clude transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets. The value of assets is determined based on the fair value of the liabilities and the interests owned by the Firm in such VIEs because the fair values for the liabilities and interests owned are more observable. Other primarily includes certain operating entities, investment funds and structured transactions. Assets and Liabilities by Balance Sheet Caption At September 30, At December 31, $ in millions 2017 2016 Assets Cash and due from banks $ 82 $ 74 Trading assets at fair value 741 1,295 Customer and other receivables 15 13 Goodwill 18 18 Intangible assets 160 177 Other assets 728 833 Total $ 1,744 $ 2,410 Liabilities Other secured financings at fair value $ 297 $ 289 Other liabilities and accrued expenses 35 29 Total $ 332 $ 318 Select Information Related to Consolidated VIEs At September 30, At December 31, $ in millions 2017 2016 Noncontrolling interests $ 197 $ 228 Maximum exposure to losses 1 — 78 Primarily related to certain derivatives, commitments, guarantees and other forms of involvement not recognized in the financial statements . |
Non-Consolidated VIEs | Non-consolidated VIEs At September 30, 2017 $ in millions MABS CDO MTOB OSF Other VIE assets (unpaid principal balance) $ 78,134 $ 7,153 $ 5,149 $ 3,709 $ 33,041 Maximum exposure to loss Debt and equity interests $ 8,908 $ 1,162 $ 44 $ 1,551 $ 5,684 Derivative and other contracts — — 3,237 — 50 Commitments, guarantees and other 850 1,007 — 169 451 Total $ 9,758 $ 2,169 $ 3,281 $ 1,720 $ 6,185 Carrying value of exposure to loss—Assets Debt and equity interests $ 8,908 $ 1,162 $ 44 $ 1,145 $ 5,684 Derivative and other contracts — — 6 — 5 Total $ 8,908 $ 1,162 $ 50 $ 1,145 $ 5,689 At December 31, 2016 $ in millions MABS CDO MTOB OSF Other VIE assets (unpaid principal balance) $ 101,916 $ 11,341 $ 4,857 $ 4,293 $ 39,077 Maximum exposure to loss Debt and equity interests $ 11,243 $ 1,245 $ 50 $ 1,570 $ 4,877 Derivative and other contracts — — 2,812 — 45 Commitments, guarantees and other 684 99 — 187 228 Total $ 11,927 $ 1,344 $ 2,862 $ 1,757 $ 5,150 Carrying value of exposure to loss—Assets Debt and equity interests $ 11,243 $ 1,245 $ 49 $ 1,183 $ 4,877 Derivative and other contracts — — 5 — 18 Total $ 11,243 $ 1,245 $ 54 $ 1,183 $ 4,895 MTOB— Municipal tender option bonds OSF— Other structured financing s Non-consolidated VIE Mortgage- and Asset-Backed Securitization Assets At September 30, 2017 At December 31, 2016 Unpaid Principal Balance Debt and Equity Interests Unpaid Principal Balance Debt and Equity Interests $ in millions Residential mortgages $ 13,043 $ 910 $ 4,775 $ 458 Commercial mortgages 43,920 1,964 54,021 2,656 U.S. agency collateralized mortgage obligations 12,015 2,723 14,796 2,758 Other consumer or commercial loans 9,156 3,311 28,324 5,371 Total $ 78,134 $ 8,908 $ 101,916 $ 11,243 |
Transfer of Assets with Continuing Involvement | Transfers of Assets with Continuing Involvement At September 30, 2017 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other 1 $ in millions SPE assets (unpaid principal balance) 2 $ 16,173 $ 55,682 $ 11,363 $ 11,602 Retained interests Investment grade 3 $ — $ 233 $ 682 $ 5 Non-investment grade (fair value) 2 139 — 638 Total $ 2 $ 372 $ 682 $ 643 Interests purchased in the secondary market (fair value) Investment grade $ — $ 68 $ 26 $ — Non-investment grade 38 81 — — Total $ 38 $ 149 $ 26 $ — Derivative assets (fair value) $ — $ — $ — $ 239 Derivative liabilities (fair value) — — — 72 At December 31, 2016 Residential Mortgage Loans Commercial Mortgage Loans U.S. Agency Collateralized Mortgage Obligations Credit-Linked Notes and Other 1 $ in millions SPE assets (unpaid principal balance) 2 $ 19,381 $ 43,104 $ 11,092 $ 11,613 Retained interests (fair value) Investment grade $ — $ 22 $ 375 $ — Non-investment grade 4 79 — 826 Total $ 4 $ 101 $ 375 $ 826 Interests purchased in the secondary market (fair value) Investment grade $ — $ 30 $ 26 $ — Non-investment grade 23 75 — — Total $ 23 $ 105 $ 26 $ — Derivative assets (fair value) $ — $ 261 $ — $ 89 Derivative liabilities (fair value) — — — 459 Amounts include CLO transactions managed by unrelated third parties. Amounts include assets transferred by unrelated transferors . Amounts include $ 692 million of investment grade retained interests at fair value. Fair Value at September 30, 2017 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 687 $ 5 $ 692 Non-investment grade 48 731 779 Total $ 735 $ 736 $ 1,471 Interests purchased in the secondary market Investment grade $ 93 $ 1 $ 94 Non-investment grade 106 13 119 Total $ 199 $ 14 $ 213 Derivative assets $ 77 $ 162 $ 239 Derivative liabilities 67 5 72 Fair Value at December 31, 2016 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 385 $ 12 $ 397 Non-investment grade 14 895 909 Total $ 399 $ 907 $ 1,306 Interests purchased in the secondary market Investment grade $ 56 $ — $ 56 Non-investment grade 84 14 98 Total $ 140 $ 14 $ 154 Derivative assets $ 348 $ 2 $ 350 Derivative liabilities 98 361 459 |
Proceeds from New Securitization Transactions and Sales of Loans | Proceeds from New Securitization Transactions and Sales of Loans Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 New transactions 1 $ 6,875 $ 6,819 $ 17,622 $ 13,695 Retained interests 648 768 1,607 1,901 Sales of corporate loans to CLO SPEs 1,2 56 199 148 230 Net gains on new transactions and sale s of corporate loans to CLO entities at the time of the sale were not material for all periods presented. Sponsored by non-affiliates . |
Carrying and Fair Value of Assets Sold and Retained Interest Exposure | Assets Sold with Retained Exposure $ in millions At September 30, 2017 At December 31, 2016 Carrying value of assets derecognized at the time of sale and gross cash proceeds $ 14,458 $ 11,209 Fair value Assets sold 14,618 11,301 Derivative assets recognized in the balance sheets 177 128 Derivative liabilities recognized in the balance sheets 17 36 |
Carrying Value of Assets and Liabilities Related to Failed Sales | Carrying Value of Assets and Liabilities Related to Failed Sales At September 30, 2017 At December 31, 2016 $ in millions Assets Liabilities Assets Liabilities Failed sales $ 858 $ 858 $ 285 $ 285 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | Regulatory Capital At September 30, 2017 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 62,214 16.9% 7.3% Tier 1 capital 71,006 19.3% 8.8% Total capital 81,861 22.2% 10.8% Tier 1 leverage — 8.4% 4.0% Total RWAs $ 368,629 N/A N/A Adjusted average assets 2 841,360 N/A N/A At December 31, 2016 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 60,398 16.9% 5.9% Tier 1 capital 68,097 19.0% 7.4% Total capital 78,642 22.0% 9.4% Tier 1 leverage — 8.4% 4.0% Total RWAs $ 358,141 N/A N/A Adjusted average assets 2 811,402 N/A N/A N/A—Not Applicable 1. Percentages represent minimum regulatory capital ratios under the transitional rules. 2 . 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 current quarter and the quarter ended December 31, 2016 , resp ectively , adjusted for disallowed goodwill, transitional intangible assets, certain deferred tax assets, certain investments in the capital instruments of unconsolidated financial institutions and other adjustments. |
MSBNA | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | MSBNA’s Regulatory Capital At September 30, 2017 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 14,839 19.3% 6.5% Tier 1 capital 14,839 19.3% 8.0% Total capital 15,110 19.7% 10.0% Tier 1 leverage 14,839 11.8% 5.0% At December 31, 2016 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 13,398 16.9% 6.5% Tier 1 capital 13,398 16.9% 8.0% Total capital 14,858 18.7% 10.0% Tier 1 leverage 13,398 10.5% 5.0% 1. Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. |
MSPBNA | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | MSPBNA’s Regulatory Capital At September 30, 2017 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 6,082 24.6% 6.5% Tier 1 capital 6,082 24.6% 8.0% Total capital 6,124 24.8% 10.0% Tier 1 leverage 6,082 9.8% 5.0% At December 31, 2016 $ in millions Amount Ratio Minimum Capital Ratio 1 Common Equity Tier 1 capital $ 5,589 26.1% 6.5% Tier 1 capital 5,589 26.1% 8.0% Total capital 5,626 26.3% 10.0% Tier 1 leverage 5,589 10.6% 5.0% 1. Capital ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. |
MS&Co. | |
Regulatory Requirements | |
Schedule of Broker-Dealer Regulatory Capital Requirements | U.S. Broker-Dealer Regulatory Capital Requirements MS&Co. Regulatory Capital $ in millions At September 30, 2017 At December 31, 2016 Net capital $ 10,613 $ 10,311 Excess net capital 8,558 8,034 |
MSSB LLC | |
Regulatory Requirements | |
Schedule of Broker-Dealer Regulatory Capital Requirements | MSSB LLC Regulatory Capital $ in millions At September 30, 2017 At December 31, 2016 Net capital $ 2,573 $ 3,946 Excess net capital 2,415 3,797 |
Total Equity (Tables)
Total Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Total Equity | |
Repurchases of Common Stock | Dividends and Share Repurchases Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Repurchases of common stock $ 1,250 $ 1,250 $ 2,500 $ 2,500 |
Dividends Declared | Preferred Stock Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Dividends declared $ 93 $ 78 $ 353 $ 312 |
Preferred Stock | Preferred Stock Outstanding $ in millions, except per share data Shares Outstanding Carrying Value At Liquidation At At September 30, Preference September 30, December 31, 2017 per Share 2017 2016 Series A 44,000 $ 25,000 $ 1,100 $ 1,100 C 1 519,882 1,000 408 408 E 34,500 25,000 862 862 F 34,000 25,000 850 850 G 20,000 25,000 500 500 H 52,000 25,000 1,300 1,300 I 40,000 25,000 1,000 1,000 J 60,000 25,000 1,500 1,500 K 40,000 25,000 1,000 — Total $ 8,520 $ 7,520 1. Series C is composed of the issuance of 1,160,791 shares of Series C Preferred Stock to MUFG for an aggregate purchase price of $ 911 million, less the redemption of 640,909 shares of Series C Preferred Stock of $ 503 million, which were converted to common shares of approximately $ 705 million. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) 1 $ in millions Foreign Currency Translation Adjustments AFS Securities Pensions, Postretirement and Other DVA Total June 30, 2017 $ (856) $ (396) $ (470) $ (766) $ (2,488) OCI during the period 61 26 — (143) (56) September 30, 2017 $ (795) $ (370) $ (470) $ (909) $ (2,544) June 30, 2016 $ (779) $ 219 $ (378) $ 33 $ (905) OCI during the period 25 (99) (1) (90) (165) September 30, 2016 $ (754) $ 120 $ (379) $ (57) $ (1,070) December 31, 2016 $ (986) $ (588) $ (474) $ (595) $ (2,643) OCI during the period 191 218 4 (314) 99 September 30, 2017 $ (795) $ (370) $ (470) $ (909) $ (2,544) December 31, 2015 $ (963) $ (319) $ (374) $ — $ (1,656) Cumulative adjustment for accounting change related to DVA 2 — — — (312) (312) OCI during the period 209 439 (5) 255 898 September 30, 2016 $ (754) $ 120 $ (379) $ (57) $ (1,070) Amounts net of tax and noncontrolling interests. In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities , a cumulative catch- up adjustment was recorded as of January 1, 2016 to move the cumulative unrealized DVA amount, net of noncontrolling interest s and tax, related to outstanding liabilities under the fair value option election from Retained earnings into AOCI. See Note 2 to the consolidated financial statements in the 2016 Form 10-K for further informa tion. |
Period Changes in OCI Components | Period Changes in OCI Components Three Months Ended September 30, 2017 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 19 $ 42 $ 61 $ — $ 61 Reclassified to earnings — — — — — Net OCI $ 19 $ 42 $ 61 $ — $ 61 Change in net unrealized gains (losses) on AFS securities OCI activity $ 52 $ (19) $ 33 $ — $ 33 Reclassified to earnings 1 (11) 4 (7) — (7) Net OCI $ 41 $ (15) $ 26 $ — $ 26 Pension, postretirement and other OCI activity $ — $ — $ — $ — $ — Reclassified to earnings 1 1 (1) — — — Net OCI $ 1 $ (1) $ — $ — $ — Change in net DVA OCI activity $ (220) $ 77 $ (143) $ (6) $ (137) Reclassified to earnings 1 (9) 3 (6) — (6) Net OCI $ (229) $ 80 $ (149) $ (6) $ (143) Three Months Ended September 30, 2016 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 13 $ 30 $ 43 $ 18 $ 25 Reclassified to earnings — — — — — Net OCI $ 13 $ 30 $ 43 $ 18 $ 25 Change in net unrealized gains (losses) on AFS securities OCI activity $ (112) $ 41 $ (71) $ — $ (71) Reclassified to earnings 1 (45) 17 (28) — (28) Net OCI $ (157) $ 58 $ (99) $ — $ (99) Pension, postretirement and other OCI activity $ — $ — $ — $ — $ — Reclassified to earnings 1 (1) — (1) — (1) Net OCI $ (1) $ — $ (1) $ — $ (1) Change in net DVA OCI activity $ (149) $ 52 $ (97) $ (3) $ (94) Reclassified to earnings 1 6 (2) 4 — 4 Net OCI $ (143) $ 50 $ (93) $ (3) $ (90) Nine Months Ended September 30, 2017 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 63 $ 160 $ 223 $ 32 $ 191 Reclassified to earnings — — — — — Net OCI $ 63 $ 160 $ 223 $ 32 $ 191 Change in net unrealized gains (losses) on AFS securities OCI activity $ 374 $ (139) $ 235 $ — $ 235 Reclassified to earnings 1 (27) 10 (17) — (17) Net OCI $ 347 $ (129) $ 218 $ — $ 218 Pension, postretirement and other OCI activity $ 3 $ — $ 3 $ — $ 3 Reclassified to earnings 1 2 (1) 1 — 1 Net OCI $ 5 $ (1) $ 4 $ — $ 4 Change in net DVA OCI activity $ (498) $ 175 $ (323) $ (9) $ (314) Reclassified to earnings 1 (1) 1 — — — Net OCI $ (499) $ 176 $ (323) $ (9) $ (314) Nine Months Ended September 30, 2016 2 $ in millions Pre-tax gain (loss) Income tax benefit (provision) After-tax gain (loss) Non-controlling interests Net Foreign currency translation adjustments OCI activity $ 156 $ 204 $ 360 $ 151 $ 209 Reclassified to earnings — — — — — Net OCI $ 156 $ 204 $ 360 $ 151 $ 209 Change in net unrealized gains (losses) on AFS securities OCI activity $ 822 $ (303) $ 519 $ — $ 519 Reclassified to earnings 1 (127) 47 (80) — (80) Net OCI $ 695 $ (256) $ 439 $ — $ 439 Pension, postretirement and other OCI activity $ (6) $ 3 $ (3) $ — $ (3) Reclassified to earnings 1 (3) 1 (2) — (2) Net OCI $ (9) $ 4 $ (5) $ — $ (5) Change in net DVA OCI activity $ 440 $ (163) $ 277 $ — $ 277 Reclassified to earnings 1 (35) 13 (22) — (22) Net OCI $ 405 $ (150) $ 255 $ — $ 255 Amounts reclassified to earnings related to: realized gains and losses from sales of AFS securities are classified within Other revenues in the income statements; Pension, postretirement and other are classified within Compensation and benefits expenses in the income statements; and realization of DVA are classified within Trading revenues in the income statements . Exclusive of 2016 cumulative adjustment for accounting change related to DVA. |
Noncontrolling Interests | Noncontrolling Interests $ in millions At September 30, 2017 At December 31, 2016 Noncontrolling interests $ 1,136 $ 1,127 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted EPS | Three Months Ended Nine Months Ended September 30, September 30, in millions, except for per share data 2017 2016 2017 2016 Basic EPS Income from continuing operations $ 1,785 $ 1,632 $ 5,574 $ 4,442 Income (loss) from discontinued operations 6 8 (21) 1 Net income 1,791 1,640 5,553 4,443 Net income applicable to noncontrolling interests 10 43 85 130 Net income applicable to Morgan Stanley 1,781 1,597 5,468 4,313 Less: Preferred stock dividends and other (93) (79) (353) (314) Earnings applicable to Morgan Stanley common shareholders $ 1,688 $ 1,518 $ 5,115 $ 3,999 Weighted average common shares outstanding 1,776 1,838 1,789 1,863 Earnings per basic common share Income from continuing operations $ 0.95 $ 0.82 $ 2.87 $ 2.15 Income (loss) from discontinued operations — 0.01 (0.01) — Earnings per basic common share $ 0.95 $ 0.83 $ 2.86 $ 2.15 Diluted EPS Earnings applicable to Morgan Stanley common shareholders $ 1,688 $ 1,518 $ 5,115 $ 3,999 Weighted average common shares outstanding 1,776 1,838 1,789 1,863 Effect of dilutive securities: Stock options and RSUs 1 42 41 41 35 Weighted average common shares outstanding and common stock equivalents 1,818 1,879 1,830 1,898 Earnings per diluted common share Income from continuing operations $ 0.93 $ 0.80 $ 2.81 $ 2.11 Income (loss) from discontinued operations — 0.01 (0.02) — Earnings per diluted common share $ 0.93 $ 0.81 $ 2.79 $ 2.11 Weighted average antidilutive RSUs and stock options (excluded from the computation of diluted EPS) 1 — 14 — 15 1. Restricted stock units (“RSUs”) that are considered participating securities are treated as a separate class of securities in the computation of basic EPS, and, therefore, such RSUs are not included as incremental shares in the diluted EPS computations. |
Interest Income and Interest 42
Interest Income and Interest Expense (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Interest Income and Interest Expense | |
Schedule of Details of Interest Income and Interest Expense | Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Interest income 1 Investment securities $ 313 $ 289 $ 943 $ 762 Loans 853 698 2,399 2,026 Interest bearing deposits with banks 84 30 206 134 Securities purchased under agreements to resell and Securities borrowed 2 76 (118) 86 (315) Trading assets, net of Trading liabilities 506 526 1,461 1,651 Customer receivables and Other 3 508 309 1,316 890 Total interest income $ 2,340 $ 1,734 $ 6,411 $ 5,148 Interest expense 1 Deposits $ 63 $ 12 $ 88 $ 48 Short-term and Long-term borrowings 1,109 814 3,197 2,633 Securities sold under agreements to repurchase and Securities loaned 4 325 228 912 761 Customer payables and Other 5 60 (323) (91) (1,109) Total interest expense $ 1,557 $ 731 $ 4,106 $ 2,333 Net interest $ 783 $ 1,003 $ 2,305 $ 2,815 1. Interest income and Interest expense are classified in the income statements based on the nature of the instrument and related market conventions. When included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. 2. Includes fees paid on Securities borrowed . 3. Inclu des interest from customer receivables and cash deposited with clearing o rganizations or segregated under federal and other regulations or requirements . 4 . Includes fees received on Securities loaned. 5 . Includes fees received from prime brokerage customers for stock loan transactions incurred to cover customers’ short position s. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Employee Benefit Plans | |
Components of Net Periodic Benefit Expense (Income) | Components of the Net Periodic Benefit Expense (Income) for Pension and Other Postretirement Plans Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Service cost, benefits earned during the period $ 4 $ 6 $ 12 $ 14 Interest cost on projected benefit obligation 37 38 112 115 Expected return on plan assets (29) (31) (87) (91) Net amortization of prior service credit (4) (4) (12) (13) Net amortization of actuarial loss 4 3 12 9 Net periodic benefit expense (income) $ 12 $ 12 $ 37 $ 34 |
Segment and Geographic Inform44
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Selected Financial Information by Business Segment | IS—Institutional Securities WM—Wealth Management IM—Investment Management I/E—Intersegment eliminations For further information on fee waiver amounts s ee the table below . For further information on net unrealized performance-based fee amounts see the table below . During the current year period, the Firm recorded a provision of $ 86 million for potential additional value - added tax , interest and penalties in relation to certain intercompany service activities provided to our U.K. group . Effective July 1, 2016, the Ins titutional Securities and Wealth Management business segments entered into an agreement, whereby Institutional Securities assumed management of Wealth Management’s fixed income client-driven trading activities and employees. Institutional Securities now pa ys fees to Wealth Management based on distribution activity (collectively, the “Fixed Income Integration”). Prior periods have not been recast for this new intersegment agreement due to immateriality. |
Information on Fee Waiver and Incentive Fees | Reduction of Fees due to Fee Waivers Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Fee waivers $ 20 $ 26 $ 66 $ 61 Net Unrealized Performance-based Fees $ in millions At September 30, 2017 At December 31, 2016 Net unrealized cumulative performance-based fees at risk of reversing $ 450 $ 397 |
Total Assets by Business Segment | Total Assets by Business Segment At September 30, At December 31, $ in millions 2017 2016 Institutional Securities $ 668,281 $ 629,149 Wealth Management 180,628 181,135 Investment Management 4,784 4,665 Total 1 $ 853,693 $ 814,949 C orporate assets have been fully allocated to the business segments. |
Net Revenues by Region | Net Revenues by Region Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2017 2016 2017 2016 Americas $ 6,833 $ 6,624 $ 20,667 $ 18,914 EMEA 1,325 1,236 4,420 3,677 Asia-Pacific 1,039 1,049 3,358 3,019 Net revenues $ 9,197 $ 8,909 $ 28,445 $ 25,610 |
Significant Accounting Polici45
Significant Accounting Policies (Details) - Improvements to Employee Share-Based Payment Accounting $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accounting Standards Adopted | |
Excess tax deficiences (benefits) recognized in Provision for income taxes | $ (112) |
Cumulative catch-up adjustment to Retained Earnings | 30 |
Increase to Additional paid-in capital | 45 |
Increase to deferred tax asset | $ 15 |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets at Fair Value | ||
Total trading assets | $ 285,088 | $ 262,154 |
Investment securities - AFS securities | 54,954 | 63,170 |
Securities purchased under agreement to resell | 101 | 302 |
Liabilities at Fair Value | ||
Deposits | 174 | 63 |
Short-term borrowings | 658 | 406 |
Total trading liabilities | 127,237 | 128,194 |
Securities sold under agreement to repurchase | 810 | 729 |
Other secured financings | 6,514 | 5,041 |
Long-term borrowings | 46,231 | 38,736 |
Recurring | ||
Assets at Fair Value | ||
U.S. treasury and agency securities | 50,724 | 48,045 |
Other sovereign government obligations | 31,733 | 19,508 |
Corporate and other debt | 29,300 | 26,703 |
Corporate equities | 137,749 | 132,372 |
Derivative and other contracts | 31,375 | 31,206 |
Netting | (277,031) | (411,246) |
Counterparty and cash collateral netting | (46,425) | (51,381) |
Investments | 1,498 | 1,392 |
Physical commodities | 157 | 112 |
Total trading assets | 282,536 | 259,338 |
Investment securities - AFS securities | 54,954 | 63,170 |
Securities purchased under agreement to resell | 101 | 302 |
Intangible assets | 3 | 3 |
Total assets | 337,594 | 322,813 |
Liabilities at Fair Value | ||
Deposits | 174 | 63 |
Short-term borrowings | 658 | 406 |
U.S. treasury and agency securities | 14,635 | 11,697 |
Other sovereign government obligations | 25,783 | 23,088 |
Corporate and other debt | 7,394 | 6,157 |
Corporate equities | 54,986 | 57,936 |
Derivative and other contracts | 24,439 | 29,315 |
Netting | (265,139) | (399,668) |
Counterparty and cash collateral netting | (34,533) | (39,803) |
Physical commodities | 1 | |
Total trading liabilities | 127,237 | 128,194 |
Securities sold under agreement to repurchase | 810 | 729 |
Other secured financings | 6,514 | 5,041 |
Long-term borrowings | 46,231 | 38,736 |
Total liabilities | 181,624 | 173,169 |
Additional Fair Value Disclosure | ||
Loans and lending commitments at fair value | 8,288 | 8,702 |
Recurring | Futures Contracts | Customer and Other Receivables | ||
Additional Fair Value Disclosure | ||
Derivative assets, unsettled fair value | 977 | 784 |
Recurring | Futures Contracts | Customer and Other Payables | ||
Additional Fair Value Disclosure | ||
Derivative liabilities, unsettled fair value | 140 | 174 |
Recurring | Corporate Loans | ||
Additional Fair Value Disclosure | ||
Loans and lending commitments at fair value | 6,441 | 7,217 |
Recurring | Residential Real Estate Loans | ||
Additional Fair Value Disclosure | ||
Loans and lending commitments at fair value | 690 | 966 |
Recurring | Wholesale Real Estate Loans | ||
Additional Fair Value Disclosure | ||
Loans and lending commitments at fair value | 1,157 | 519 |
Recurring | Other Sovereign Government Obligations | ||
Transfers Between Level 1 and Level 2 | ||
Derivative liabilities transferred from Level 2 to Level 1 | 1,800 | |
Recurring | Other Sovereign Government Obligations | ||
Transfers Between Level 1 and Level 2 | ||
Derivative assets transferred from Level 2 to Level 1 | 1,300 | |
Recurring | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 2,133 | 2,605 |
Recurring | MABS | ||
Assets at Fair Value | ||
Corporate and other debt | 2,673 | 1,908 |
Recurring | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 14,583 | 11,283 |
Liabilities at Fair Value | ||
Corporate and other debt | 7,050 | 5,606 |
Recurring | CDO | ||
Assets at Fair Value | ||
Corporate and other debt | 389 | 665 |
Recurring | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 8,288 | 8,702 |
Recurring | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 1,234 | 1,540 |
Liabilities at Fair Value | ||
Corporate and other debt | 344 | 551 |
Recurring | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 185,800 | 302,910 |
Liabilities at Fair Value | ||
Derivative and other contracts | 166,459 | 287,576 |
Recurring | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 8,904 | 12,229 |
Liabilities at Fair Value | ||
Derivative and other contracts | 10,033 | 13,425 |
Recurring | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 53,982 | 75,165 |
Liabilities at Fair Value | ||
Derivative and other contracts | 54,375 | 75,583 |
Recurring | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 49,444 | 38,629 |
Liabilities at Fair Value | ||
Derivative and other contracts | 51,026 | 40,514 |
Recurring | Commodity and Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 10,276 | 13,519 |
Liabilities at Fair Value | ||
Derivative and other contracts | 7,685 | 11,885 |
Recurring | Level 1 | ||
Assets at Fair Value | ||
U.S. treasury and agency securities | 27,538 | 27,579 |
Other sovereign government obligations | 25,428 | 14,005 |
Corporate and other debt | 0 | 0 |
Corporate equities | 137,028 | 131,574 |
Derivative and other contracts | 74 | 977 |
Netting | (2,896) | (4,378) |
Investments | 316 | 237 |
Physical commodities | 0 | 0 |
Total trading assets | 190,384 | 174,372 |
Investment securities - AFS securities | 25,022 | 29,120 |
Securities purchased under agreement to resell | 0 | 0 |
Intangible assets | 0 | 0 |
Total assets | 215,406 | 203,492 |
Liabilities at Fair Value | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
U.S. treasury and agency securities | 14,574 | 11,636 |
Other sovereign government obligations | 24,351 | 20,658 |
Corporate and other debt | 0 | 0 |
Corporate equities | 54,778 | 57,847 |
Derivative and other contracts | 119 | 708 |
Netting | (2,896) | (4,378) |
Physical commodities | 0 | |
Total trading liabilities | 93,822 | 90,849 |
Securities sold under agreement to repurchase | 0 | 0 |
Other secured financings | 0 | 0 |
Long-term borrowings | 35 | 47 |
Total liabilities | 93,857 | 90,896 |
Recurring | Level 1 | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | MABS | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | CDO | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 0 | 0 |
Liabilities at Fair Value | ||
Corporate and other debt | 0 | 0 |
Recurring | Level 1 | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 581 | 1,131 |
Liabilities at Fair Value | ||
Derivative and other contracts | 478 | 1,244 |
Recurring | Level 1 | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 0 | 0 |
Liabilities at Fair Value | ||
Derivative and other contracts | 0 | 0 |
Recurring | Level 1 | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 93 | 231 |
Liabilities at Fair Value | ||
Derivative and other contracts | 52 | 17 |
Recurring | Level 1 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,056 | 1,185 |
Liabilities at Fair Value | ||
Derivative and other contracts | 1,252 | 1,162 |
Recurring | Level 1 | Commodity and Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,240 | 2,808 |
Liabilities at Fair Value | ||
Derivative and other contracts | 1,233 | 2,663 |
Recurring | Level 2 | ||
Assets at Fair Value | ||
U.S. treasury and agency securities | 23,186 | 20,392 |
Other sovereign government obligations | 6,201 | 5,497 |
Corporate and other debt | 23,463 | 20,639 |
Corporate equities | 425 | 352 |
Derivative and other contracts | 69,988 | 75,981 |
Netting | (225,857) | (353,543) |
Investments | 257 | 197 |
Physical commodities | 157 | 112 |
Total trading assets | 123,677 | 123,170 |
Investment securities - AFS securities | 29,932 | 34,050 |
Securities purchased under agreement to resell | 101 | 302 |
Intangible assets | 3 | 3 |
Total assets | 153,713 | 157,525 |
Liabilities at Fair Value | ||
Deposits | 68 | 21 |
Short-term borrowings | 658 | 404 |
U.S. treasury and agency securities | 61 | 61 |
Other sovereign government obligations | 1,432 | 2,430 |
Corporate and other debt | 7,386 | 6,121 |
Corporate equities | 157 | 54 |
Derivative and other contracts | 54,575 | 64,569 |
Netting | (225,857) | (353,543) |
Physical commodities | 1 | |
Total trading liabilities | 63,611 | 73,236 |
Securities sold under agreement to repurchase | 661 | 580 |
Other secured financings | 6,264 | 4,607 |
Long-term borrowings | 43,593 | 36,677 |
Total liabilities | 114,855 | 115,525 |
Recurring | Level 2 | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 2,123 | 2,355 |
Recurring | Level 2 | MABS | ||
Assets at Fair Value | ||
Corporate and other debt | 2,399 | 1,691 |
Recurring | Level 2 | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 14,164 | 11,051 |
Liabilities at Fair Value | ||
Corporate and other debt | 7,044 | 5,572 |
Recurring | Level 2 | CDO | ||
Assets at Fair Value | ||
Corporate and other debt | 313 | 602 |
Recurring | Level 2 | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 3,423 | 3,580 |
Recurring | Level 2 | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 1,041 | 1,360 |
Liabilities at Fair Value | ||
Corporate and other debt | 342 | 549 |
Recurring | Level 2 | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 183,561 | 300,406 |
Liabilities at Fair Value | ||
Derivative and other contracts | 165,399 | 285,379 |
Recurring | Level 2 | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 8,527 | 11,727 |
Liabilities at Fair Value | ||
Derivative and other contracts | 9,353 | 12,550 |
Recurring | Level 2 | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 53,842 | 74,921 |
Liabilities at Fair Value | ||
Derivative and other contracts | 54,198 | 75,510 |
Recurring | Level 2 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 44,986 | 35,736 |
Liabilities at Fair Value | ||
Derivative and other contracts | 47,603 | 37,828 |
Recurring | Level 2 | Commodity and Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 4,929 | 6,734 |
Liabilities at Fair Value | ||
Derivative and other contracts | 3,879 | 6,845 |
Recurring | Level 3 | ||
Assets at Fair Value | ||
U.S. treasury and agency securities | 0 | 74 |
Other sovereign government obligations | 104 | 6 |
Corporate and other debt | 5,837 | 6,064 |
Corporate equities | 296 | 446 |
Derivative and other contracts | 7,738 | 5,629 |
Netting | (1,853) | (1,944) |
Investments | 925 | 958 |
Physical commodities | 0 | 0 |
Total trading assets | 14,900 | 13,177 |
Investment securities - AFS securities | 0 | 0 |
Securities purchased under agreement to resell | 0 | 0 |
Intangible assets | 0 | 0 |
Total assets | 14,900 | 13,177 |
Liabilities at Fair Value | ||
Deposits | 106 | 42 |
Short-term borrowings | 0 | 2 |
U.S. treasury and agency securities | 0 | 0 |
Other sovereign government obligations | 0 | 0 |
Corporate and other debt | 8 | 36 |
Corporate equities | 51 | 35 |
Derivative and other contracts | 4,278 | 3,841 |
Netting | (1,853) | (1,944) |
Physical commodities | 0 | |
Total trading liabilities | 4,337 | 3,912 |
Securities sold under agreement to repurchase | 149 | 149 |
Other secured financings | 250 | 434 |
Long-term borrowings | 2,603 | 2,012 |
Total liabilities | 7,445 | 6,551 |
Recurring | Level 3 | State and Municipal Securities | ||
Assets at Fair Value | ||
Corporate and other debt | 10 | 250 |
Recurring | Level 3 | MABS | ||
Assets at Fair Value | ||
Corporate and other debt | 274 | 217 |
Recurring | Level 3 | Corporate Bonds | ||
Assets at Fair Value | ||
Corporate and other debt | 419 | 232 |
Liabilities at Fair Value | ||
Corporate and other debt | 6 | 34 |
Recurring | Level 3 | CDO | ||
Assets at Fair Value | ||
Corporate and other debt | 76 | 63 |
Recurring | Level 3 | Loans and Lending Commitments | ||
Assets at Fair Value | ||
Corporate and other debt | 4,865 | 5,122 |
Recurring | Level 3 | Other Debt | ||
Assets at Fair Value | ||
Corporate and other debt | 193 | 180 |
Liabilities at Fair Value | ||
Corporate and other debt | 2 | 2 |
Recurring | Level 3 | Interest Rate Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,658 | 1,373 |
Liabilities at Fair Value | ||
Derivative and other contracts | 582 | 953 |
Recurring | Level 3 | Credit Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 377 | 502 |
Liabilities at Fair Value | ||
Derivative and other contracts | 680 | 875 |
Recurring | Level 3 | Foreign Exchange Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 47 | 13 |
Liabilities at Fair Value | ||
Derivative and other contracts | 125 | 56 |
Recurring | Level 3 | Equity Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 3,402 | 1,708 |
Liabilities at Fair Value | ||
Derivative and other contracts | 2,171 | 1,524 |
Recurring | Level 3 | Commodity and Other Contracts | ||
Assets at Fair Value | ||
Derivative and other contracts | 4,107 | 3,977 |
Liabilities at Fair Value | ||
Derivative and other contracts | $ 2,573 | $ 2,377 |
Fair Value Disclosures (Changes
Fair Value Disclosures (Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Recurring - Level 3 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Intangible Assets | ||||
Assets | ||||
Beginning balance | $ 5 | |||
Realized and unrealized gains (losses) | 0 | |||
Purchases | 0 | |||
Sales and Issuances | 0 | |||
Settlements | 0 | |||
Net transfers | (5) | |||
Ending balance | $ 0 | 0 | ||
Unrealized gains (losses) | 0 | |||
Deposits | ||||
Liabilities | ||||
Beginning balance | $ 79 | 30 | $ 42 | 19 |
Realized and unrealized (gains) losses | 1 | (1) | 2 | 1 |
Purchases | 0 | 0 | 0 | 0 |
Sales and Issuances | 32 | 5 | 62 | 15 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | (6) | (3) | 0 | (4) |
Ending balance | 106 | 31 | 106 | 31 |
Unrealized gains (losses) | (1) | 1 | (2) | (1) |
Short-term Borrowings | ||||
Liabilities | ||||
Beginning balance | 0 | 2 | 1 | |
Realized and unrealized (gains) losses | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales and Issuances | 0 | 0 | 0 | |
Settlements | 0 | (2) | (1) | |
Net transfers | 2 | 0 | 2 | |
Ending balance | 0 | 2 | 0 | 2 |
Unrealized gains (losses) | 0 | 0 | 0 | |
Securities Sold Under Agreements to Repurchase | ||||
Liabilities | ||||
Beginning balance | 148 | 150 | 149 | 151 |
Realized and unrealized (gains) losses | 1 | (1) | 0 | (2) |
Purchases | 0 | 0 | 0 | 0 |
Sales and Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 0 | 0 | 0 | 0 |
Ending balance | 149 | 149 | 149 | 149 |
Unrealized gains (losses) | (1) | 2 | 1 | 3 |
Other Secured Financings | ||||
Liabilities | ||||
Beginning balance | 244 | 441 | 434 | 461 |
Realized and unrealized (gains) losses | 5 | 11 | 28 | 42 |
Purchases | 0 | 0 | 0 | 0 |
Sales and Issuances | 2 | 0 | 54 | 69 |
Settlements | (1) | (2) | (223) | (44) |
Net transfers | 0 | 0 | (43) | (78) |
Ending balance | 250 | 450 | 250 | 450 |
Unrealized gains (losses) | (5) | (11) | (21) | (42) |
Long-term Borrowings | ||||
Liabilities | ||||
Beginning balance | 2,646 | 1,929 | 2,012 | 1,987 |
Realized and unrealized (gains) losses | 53 | 88 | 142 | 103 |
Purchases | 0 | 0 | 0 | 0 |
Sales and Issuances | 679 | 193 | 1,418 | 366 |
Settlements | (49) | (147) | (326) | (262) |
Net transfers | (726) | (21) | (643) | (152) |
Ending balance | 2,603 | 2,042 | 2,603 | 2,042 |
Unrealized gains (losses) | (47) | (87) | (136) | 91 |
Trading Assets | U.S. Treasury and Agency Securities | ||||
Assets | ||||
Beginning balance | 20 | 74 | 0 | |
Realized and unrealized gains (losses) | 0 | (1) | 0 | |
Purchases | 0 | 0 | 3 | |
Sales and Issuances | (18) | (240) | (37) | |
Settlements | 0 | 0 | 0 | |
Net transfers | 6 | 167 | 42 | |
Ending balance | 0 | 8 | 0 | 8 |
Unrealized gains (losses) | 0 | 0 | 0 | |
Trading Assets | Other Sovereign Government Obligations | ||||
Assets | ||||
Beginning balance | 100 | 2 | 6 | 4 |
Realized and unrealized gains (losses) | 2 | 0 | 0 | 0 |
Purchases | 86 | 6 | 104 | 10 |
Sales and Issuances | (82) | (1) | (5) | (6) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | (2) | 5 | (1) | 4 |
Ending balance | 104 | 12 | 104 | 12 |
Unrealized gains (losses) | 1 | 0 | 0 | 0 |
Trading Assets | Corporate and Other Debt | ||||
Assets | ||||
Beginning balance | 5,830 | 6,696 | 6,064 | 7,538 |
Realized and unrealized gains (losses) | 70 | (67) | 207 | (94) |
Purchases | 2,048 | 795 | 3,033 | 1,260 |
Sales and Issuances | (1,729) | (642) | (2,511) | (1,796) |
Settlements | (240) | (733) | (987) | (986) |
Net transfers | (142) | (1,096) | 31 | (969) |
Ending balance | 5,837 | 4,953 | 5,837 | 4,953 |
Unrealized gains (losses) | 52 | (72) | 101 | (18) |
Trading Assets | Corporate and Other Debt | State and Municipal Securities | ||||
Assets | ||||
Beginning balance | 9 | 10 | 250 | 19 |
Realized and unrealized gains (losses) | 0 | 1 | 3 | 0 |
Purchases | 4 | 0 | 6 | 0 |
Sales and Issuances | (3) | (7) | (81) | (16) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 0 | 0 | (168) | 1 |
Ending balance | 10 | 4 | 10 | 4 |
Unrealized gains (losses) | 0 | 0 | 0 | 0 |
Trading Assets | Corporate and Other Debt | MABS | ||||
Assets | ||||
Beginning balance | 264 | 355 | 217 | 438 |
Realized and unrealized gains (losses) | 4 | (7) | 49 | (35) |
Purchases | 52 | 74 | 120 | 88 |
Sales and Issuances | (54) | (156) | (120) | (314) |
Settlements | 0 | 0 | (16) | 0 |
Net transfers | 8 | (2) | 24 | 87 |
Ending balance | 274 | 264 | 274 | 264 |
Unrealized gains (losses) | 1 | (15) | 13 | (31) |
Trading Assets | Corporate and Other Debt | Corporate Bonds | ||||
Assets | ||||
Beginning balance | 449 | 276 | 232 | 267 |
Realized and unrealized gains (losses) | 29 | (55) | 30 | (4) |
Purchases | 120 | 20 | 310 | 146 |
Sales and Issuances | (144) | (23) | (205) | (276) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | (35) | (19) | 52 | 66 |
Ending balance | 419 | 199 | 419 | 199 |
Unrealized gains (losses) | 27 | (55) | (6) | (17) |
Trading Assets | Corporate and Other Debt | CDO | ||||
Assets | ||||
Beginning balance | 58 | 109 | 63 | 430 |
Realized and unrealized gains (losses) | 7 | 6 | 6 | 9 |
Purchases | 20 | 9 | 33 | 13 |
Sales and Issuances | (15) | (38) | (18) | (295) |
Settlements | (4) | 0 | (7) | 0 |
Net transfers | 10 | (1) | (1) | (72) |
Ending balance | 76 | 85 | 76 | 85 |
Unrealized gains (losses) | 6 | 10 | 3 | 16 |
Trading Assets | Corporate and Other Debt | Loans and Lending Commitments | ||||
Assets | ||||
Beginning balance | 4,864 | 5,418 | 5,122 | 5,936 |
Realized and unrealized gains (losses) | 25 | (12) | 88 | (65) |
Purchases | 1,772 | 501 | 2,470 | 921 |
Sales and Issuances | (1,431) | (206) | (1,927) | (860) |
Settlements | (236) | (733) | (964) | (986) |
Net transfers | (129) | (813) | 76 | (791) |
Ending balance | 4,865 | 4,155 | 4,865 | 4,155 |
Unrealized gains (losses) | 17 | (12) | 85 | (51) |
Trading Assets | Corporate and Other Debt | Other Debt | ||||
Assets | ||||
Beginning balance | 186 | 528 | 180 | 448 |
Realized and unrealized gains (losses) | 5 | 0 | 31 | 1 |
Purchases | 80 | 191 | 94 | 92 |
Sales and Issuances | (82) | (212) | (160) | (35) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 4 | (261) | 48 | (260) |
Ending balance | 193 | 246 | 193 | 246 |
Unrealized gains (losses) | 1 | 0 | 6 | 65 |
Trading Assets | Corporate Equities | ||||
Assets | ||||
Beginning balance | 500 | 572 | 446 | 434 |
Realized and unrealized gains (losses) | (9) | (28) | 8 | (57) |
Purchases | 24 | 43 | 74 | 62 |
Sales and Issuances | (268) | (36) | (604) | (324) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 49 | (214) | 372 | 222 |
Ending balance | 296 | 337 | 296 | 337 |
Unrealized gains (losses) | 0 | (26) | 3 | (80) |
Trading Assets | Net Derivative and Other Contracts | ||||
Assets | ||||
Beginning balance | 3,269 | (1,536) | 1,788 | (1,424) |
Realized and unrealized gains (losses) | 285 | 549 | 718 | 609 |
Purchases | 90 | 34 | 880 | 853 |
Sales and Issuances | (116) | (68) | (303) | (203) |
Settlements | 52 | 368 | 580 | 643 |
Net transfers | (120) | 1,138 | (203) | 7 |
Ending balance | 3,460 | 485 | 3,460 | 485 |
Unrealized gains (losses) | 164 | 418 | 405 | (201) |
Trading Assets | Net Derivative and Other Contracts | Interest Rate Contracts | ||||
Assets | ||||
Beginning balance | 970 | (235) | 420 | 260 |
Realized and unrealized gains (losses) | 105 | (60) | 137 | 257 |
Purchases | 13 | 3 | 36 | 3 |
Sales and Issuances | (29) | (15) | (42) | (15) |
Settlements | 33 | 11 | 658 | (59) |
Net transfers | (16) | 337 | (133) | (405) |
Ending balance | 1,076 | 41 | 1,076 | 41 |
Unrealized gains (losses) | 92 | (45) | 146 | (156) |
Trading Assets | Net Derivative and Other Contracts | Credit Contracts | ||||
Assets | ||||
Beginning balance | (305) | (1,114) | (373) | (844) |
Realized and unrealized gains (losses) | (33) | 147 | (18) | (255) |
Purchases | 7 | 0 | 6 | 1 |
Sales and Issuances | (9) | 0 | (9) | 0 |
Settlements | 35 | 2 | 96 | 155 |
Net transfers | 2 | 82 | (5) | 60 |
Ending balance | (303) | (883) | (303) | (883) |
Unrealized gains (losses) | (33) | 147 | (34) | (277) |
Trading Assets | Net Derivative and Other Contracts | Foreign Exchange Contracts | ||||
Assets | ||||
Beginning balance | 2 | (1) | (43) | 141 |
Realized and unrealized gains (losses) | (59) | (27) | (92) | (104) |
Purchases | 9 | 0 | 9 | 0 |
Sales and Issuances | 0 | 0 | 0 | 0 |
Settlements | 17 | (42) | 48 | (224) |
Net transfers | (47) | (37) | 0 | 80 |
Ending balance | (78) | (107) | (78) | (107) |
Unrealized gains (losses) | (50) | (27) | (72) | (102) |
Trading Assets | Net Derivative and Other Contracts | Equity Contracts | ||||
Assets | ||||
Beginning balance | 1,093 | (1,473) | 184 | (2,031) |
Realized and unrealized gains (losses) | 114 | 220 | 168 | 334 |
Purchases | 60 | 31 | 816 | 816 |
Sales and Issuances | (77) | (39) | (231) | (168) |
Settlements | 79 | 567 | 209 | 1,083 |
Net transfers | (38) | 834 | 85 | 106 |
Ending balance | 1,231 | 140 | 1,231 | 140 |
Unrealized gains (losses) | 110 | 239 | 277 | 172 |
Trading Assets | Net Derivative and Other Contracts | Commodity and Other Contracts | ||||
Assets | ||||
Beginning balance | 1,509 | 1,287 | 1,600 | 1,050 |
Realized and unrealized gains (losses) | 158 | 269 | 523 | 377 |
Purchases | 1 | 0 | 13 | 33 |
Sales and Issuances | (1) | (14) | (21) | (20) |
Settlements | (112) | (170) | (431) | (312) |
Net transfers | (21) | (78) | (150) | 166 |
Ending balance | 1,534 | 1,294 | 1,534 | 1,294 |
Unrealized gains (losses) | 45 | 104 | 88 | 162 |
Trading Assets | Investments | ||||
Assets | ||||
Beginning balance | 946 | 974 | 958 | 707 |
Realized and unrealized gains (losses) | (4) | (41) | 16 | (60) |
Purchases | 13 | 2 | 96 | 374 |
Sales and Issuances | (17) | (8) | (44) | (37) |
Settlements | (16) | (27) | (78) | (67) |
Net transfers | 3 | 36 | (23) | 19 |
Ending balance | 925 | 936 | 925 | 936 |
Unrealized gains (losses) | (5) | (36) | 10 | (63) |
Trading Liabilities | Corporate and Other Debt | ||||
Liabilities | ||||
Beginning balance | 15 | 9 | 36 | 4 |
Realized and unrealized (gains) losses | 2 | 1 | 1 | 3 |
Purchases | (18) | (3) | (55) | (8) |
Sales and Issuances | 9 | 2 | 99 | 32 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 0 | 7 | (73) | (15) |
Ending balance | 8 | 16 | 8 | 16 |
Unrealized gains (losses) | (1) | (1) | 0 | (3) |
Trading Liabilities | Corporate and Other Debt | Corporate Bonds | ||||
Liabilities | ||||
Beginning balance | 13 | 6 | 34 | 0 |
Realized and unrealized (gains) losses | 2 | 1 | 1 | 3 |
Purchases | (18) | (3) | (54) | (7) |
Sales and Issuances | 9 | 2 | 98 | 32 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 0 | 7 | (73) | (15) |
Ending balance | 6 | 13 | 6 | 13 |
Unrealized gains (losses) | (1) | (1) | 0 | (3) |
Trading Liabilities | Corporate and Other Debt | Other Debt | ||||
Liabilities | ||||
Beginning balance | 2 | 3 | 2 | 4 |
Realized and unrealized (gains) losses | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | (1) | (1) |
Sales and Issuances | 0 | 0 | 1 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 0 | 0 | 0 | 0 |
Ending balance | 2 | 3 | 2 | 3 |
Unrealized gains (losses) | 0 | 0 | 0 | 0 |
Trading Liabilities | Corporate Equities | ||||
Liabilities | ||||
Beginning balance | 28 | 26 | 35 | 18 |
Realized and unrealized (gains) losses | (1) | (2) | 0 | (4) |
Purchases | (10) | (2) | (69) | (37) |
Sales and Issuances | 24 | 3 | 27 | 14 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 10 | (5) | 58 | 29 |
Ending balance | 51 | 20 | 51 | 20 |
Unrealized gains (losses) | $ 2 | $ 0 | $ (1) | $ 32 |
Fair Value Disclosures (Valuati
Fair Value Disclosures (Valuation Techniques and Sensitivity of Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements) (Details) - Level 3 $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017USD ($)$ / MWh | Dec. 31, 2016USD ($)$ / MWh | |
Recurring | U.S. Treasury and Agency Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 0 | $ 74 |
Recurring | U.S. Treasury and Agency Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 96.00% | |
Recurring | U.S. Treasury and Agency Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 105.00% | |
Recurring | U.S. Treasury and Agency Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 102.00% | |
Recurring | Other Sovereign Government Obligations | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 104 | $ 6 |
Recurring | Other Sovereign Government Obligations | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 86.00% | |
Recurring | Other Sovereign Government Obligations | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 97.00% | |
Recurring | Other Sovereign Government Obligations | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 88.00% | |
Recurring | State and Municipal Securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 10 | $ 250 |
Recurring | State and Municipal Securities | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 53.00% | |
Recurring | State and Municipal Securities | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 100.00% | |
Recurring | State and Municipal Securities | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 91.00% | |
Recurring | MABS | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 274 | $ 217 |
Recurring | MABS | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 0.00% | 0.00% |
Recurring | MABS | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 100.00% | 86.00% |
Recurring | MABS | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 33.00% | 27.00% |
Recurring | Corporate Bonds | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 419 | $ 232 |
Recurring | Corporate Bonds | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 3.00% | 3.00% |
Recurring | Corporate Bonds | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 132.00% | 130.00% |
Recurring | Corporate Bonds | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 60.00% | 70.00% |
Recurring | Corporate Bonds | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Recovery rate | 5.00% | |
Recurring | Corporate Bonds | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Recovery rate | 33.00% | |
Recurring | Corporate Bonds | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Recovery rate | 25.00% | |
Recurring | Corporate Bonds | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 16.00% | 23.00% |
Recurring | Corporate Bonds | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 35.00% | 33.00% |
Recurring | Corporate Bonds | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 25.00% | 30.00% |
Recurring | CDO | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 76 | $ 63 |
Recurring | CDO | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 15.00% | 0.00% |
Recurring | CDO | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 101.00% | 103.00% |
Recurring | CDO | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 66.00% | 50.00% |
Recurring | CDO | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit correlation | 43.00% | |
Recurring | CDO | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit correlation | 54.00% | |
Recurring | CDO | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit correlation | 51.00% | |
Recurring | Loans and Lending Commitments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 4,865 | $ 5,122 |
Recurring | Loans and Lending Commitments | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable loan price | 46.00% | 45.00% |
Recurring | Loans and Lending Commitments | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable loan price | 102.00% | 100.00% |
Recurring | Loans and Lending Commitments | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable loan price | 92.00% | 84.00% |
Recurring | Loans and Lending Commitments | Corporate Loan Model | Minimum | ||
Fair Value Inputs | ||
Credit spread | 4.02% | |
Recurring | Loans and Lending Commitments | Corporate Loan Model | Maximum | ||
Fair Value Inputs | ||
Credit spread | 6.72% | |
Recurring | Loans and Lending Commitments | Corporate Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Credit spread | 5.57% | |
Recurring | Loans and Lending Commitments | Discounted Cash Flow | ||
Fair Value Inputs | ||
Implied weighted average cost of capital | 5.00% | |
Recurring | Loans and Lending Commitments | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Capitalization rate | 4.00% | |
Recurring | Loans and Lending Commitments | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Capitalization rate | 10.00% | |
Recurring | Loans and Lending Commitments | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Capitalization rate | 4.00% | |
Recurring | Loans and Lending Commitments | Expected Recovery | Minimum | ||
Fair Value Inputs | ||
Asset coverage | 37.00% | 43.00% |
Recurring | Loans and Lending Commitments | Expected Recovery | Maximum | ||
Fair Value Inputs | ||
Asset coverage | 100.00% | 100.00% |
Recurring | Loans and Lending Commitments | Expected Recovery | Weighted Average | ||
Fair Value Inputs | ||
Asset coverage | 83.00% | 83.00% |
Recurring | Loans and Lending Commitments | Margin Loan Model | Minimum | ||
Fair Value Inputs | ||
Discount rate | 1.00% | 2.00% |
Volatility Skew | 8.00% | 21.00% |
Recurring | Loans and Lending Commitments | Margin Loan Model | Maximum | ||
Fair Value Inputs | ||
Discount rate | 3.00% | 8.00% |
Volatility Skew | 43.00% | 63.00% |
Recurring | Loans and Lending Commitments | Margin Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Discount rate | 1.00% | 3.00% |
Volatility Skew | 19.00% | 33.00% |
Recurring | Other Debt | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 193 | $ 180 |
Recurring | Other Debt | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable loan price | 1.00% | 1.00% |
Recurring | Other Debt | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable loan price | 5.00% | 74.00% |
Recurring | Other Debt | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable loan price | 2.00% | 23.00% |
Recurring | Other Debt | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Discount rate | 7.00% | 7.00% |
Recurring | Other Debt | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Discount rate | 18.00% | 12.00% |
Recurring | Other Debt | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Discount rate | 9.00% | 11.00% |
Recurring | Other Debt | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 17.00% | 16.00% |
Recurring | Other Debt | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 52.00% | 52.00% |
Recurring | Other Debt | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 47.00% | 52.00% |
Recurring | Corporate Equities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 296 | $ 446 |
Recurring | Corporate Equities | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable equity price | 100.00% | 100.00% |
Recurring | Interest Rate Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 1,076 | $ 420 |
Recurring | Interest Rate Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Inflation volatility | 45.00% | 40.00% |
Interest rate - Foreign exchange correlation | 44.00% | |
Interest rate curve | 1.00% | |
Interest rate curve correlation | 75.00% | 68.00% |
Interest rate quanto correlation | 1.00% | |
Interest rate volatility skew | 44.00% | 55.00% |
Recurring | Interest Rate Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Inflation volatility | 43.00% | 39.00% |
Interest rate - Foreign exchange correlation | 43.00% | |
Interest rate curve | 1.00% | |
Interest rate curve correlation | 78.00% | 72.00% |
Interest rate quanto correlation | (5.00%) | |
Interest rate volatility skew | 44.00% | 56.00% |
Recurring | Interest Rate Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Inflation volatility | 24.00% | 23.00% |
Interest rate - Foreign exchange correlation | 28.00% | |
Interest rate curve | 1.00% | |
Interest rate curve correlation | 30.00% | 28.00% |
Interest rate quanto correlation | (17.00%) | |
Interest rate volatility skew | 29.00% | 19.00% |
Recurring | Interest Rate Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Inflation volatility | 64.00% | 55.00% |
Interest rate - Foreign exchange correlation | 58.00% | |
Interest rate curve | 2.00% | |
Interest rate curve correlation | 96.00% | 96.00% |
Interest rate quanto correlation | 31.00% | |
Interest rate volatility skew | 106.00% | 117.00% |
Recurring | Credit Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ (303) | $ (373) |
Recurring | Credit Contracts | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Cash synthetic basis | 14.00% | 5.00% |
Comparable bond price | 0.00% | 0.00% |
Recurring | Credit Contracts | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Cash synthetic basis | 15.00% | 12.00% |
Comparable bond price | 70.00% | 70.00% |
Recurring | Credit Contracts | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Cash synthetic basis | 14.00% | 11.00% |
Comparable bond price | 25.00% | 23.00% |
Recurring | Credit Contracts | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit correlation | 29.00% | 32.00% |
Recurring | Credit Contracts | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit correlation | 99.00% | 70.00% |
Recurring | Credit Contracts | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit correlation | 51.00% | 45.00% |
Recurring | Foreign Exchange Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ (78) | $ (43) |
Recurring | Foreign Exchange Contracts | Option Model | ||
Fair Value Inputs | ||
Contingency probability | 95.00% | |
Recurring | Foreign Exchange Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Interest rate - Foreign exchange correlation | 44.00% | 44.00% |
Interest rate quanto correlation | 1.00% | |
Interest rate volatility skew | 55.00% | |
Recurring | Foreign Exchange Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Interest rate - Foreign exchange correlation | 44.00% | 43.00% |
Interest rate quanto correlation | (5.00%) | |
Interest rate volatility skew | 56.00% | |
Recurring | Foreign Exchange Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Interest rate - Foreign exchange correlation | 27.00% | 28.00% |
Interest rate quanto correlation | (17.00%) | |
Interest rate volatility skew | 34.00% | |
Recurring | Foreign Exchange Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Interest rate - Foreign exchange correlation | 59.00% | 58.00% |
Interest rate quanto correlation | 31.00% | |
Interest rate volatility skew | 117.00% | |
Recurring | Equity Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 1,231 | $ 184 |
Recurring | Equity Contracts | Option Model | Simple Average | ||
Fair Value Inputs | ||
Equity - Interest rate correlation | 17.00% | 12.00% |
Recurring | Equity Contracts | Option Model | Median | ||
Fair Value Inputs | ||
Equity - Interest rate correlation | 21.00% | 4.00% |
Recurring | Equity Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 5.00% | 7.00% |
Equity - Equity correlation | 5.00% | 25.00% |
Equity - Foreign exchange correlation | (70.00%) | (63.00%) |
Equity - Interest rate correlation | (7.00%) | (8.00%) |
Volatility Skew | (3.00%) | (4.00%) |
Recurring | Equity Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 55.00% | 66.00% |
Equity - Equity correlation | 99.00% | 99.00% |
Equity - Foreign exchange correlation | 30.00% | 30.00% |
Equity - Interest rate correlation | 52.00% | 52.00% |
Volatility Skew | 0.00% | 0.00% |
Recurring | Equity Contracts | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 36.00% | 33.00% |
Equity - Equity correlation | 73.00% | 73.00% |
Equity - Foreign exchange correlation | (28.00%) | (43.00%) |
Volatility Skew | (1.00%) | (1.00%) |
Recurring | Commodity and Other Contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 1,534 | $ 1,600 |
Recurring | Commodity and Other Contracts | Option Model | Minimum | ||
Fair Value Inputs | ||
Commodity volatility | 5.00% | 6.00% |
Cross commodity correlation | 5.00% | 5.00% |
Forward power price | $ / MWh | 6 | 7 |
Recurring | Commodity and Other Contracts | Option Model | Maximum | ||
Fair Value Inputs | ||
Commodity volatility | 56.00% | 130.00% |
Cross commodity correlation | 99.00% | 99.00% |
Forward power price | $ / MWh | 84 | 90 |
Recurring | Commodity and Other Contracts | Option Model | Weighted Average | ||
Fair Value Inputs | ||
Commodity volatility | 16.00% | 18.00% |
Cross commodity correlation | 92.00% | 92.00% |
Forward power price | $ / MWh | 30 | 32 |
Recurring | Investments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 925 | $ 958 |
Recurring | Investments | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable equity price | 45.00% | 75.00% |
Recurring | Investments | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable equity price | 100.00% | 100.00% |
Recurring | Investments | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable equity price | 90.00% | 93.00% |
Recurring | Investments | Discounted Cash Flow | ||
Fair Value Inputs | ||
Implied weighted average cost of capital | 10.00% | |
Recurring | Investments | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Exit multiple | 10 | |
Recurring | Investments | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Exit multiple | 24 | |
Recurring | Investments | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Exit multiple | 11 | |
Recurring | Investments | Market Approach | Minimum | ||
Fair Value Inputs | ||
EBITDA multiple | 6 | 6 |
Recurring | Investments | Market Approach | Maximum | ||
Fair Value Inputs | ||
EBITDA multiple | 24 | 24 |
Recurring | Investments | Market Approach | Weighted Average | ||
Fair Value Inputs | ||
EBITDA multiple | 12 | 12 |
Recurring | Deposits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 106 | $ 42 |
Recurring | Deposits | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 15.00% | |
Volatility Skew | (1.00%) | |
Recurring | Deposits | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 37.00% | |
Volatility Skew | 0.00% | |
Recurring | Deposits | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 32.00% | |
Volatility Skew | (1.00%) | |
Recurring | Securities Sold Under Agreements to Repurchase | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 149 | $ 149 |
Recurring | Securities Sold Under Agreements to Repurchase | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Funding spread | 1.45% | 1.18% |
Recurring | Securities Sold Under Agreements to Repurchase | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Funding spread | 1.54% | 1.27% |
Recurring | Securities Sold Under Agreements to Repurchase | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Funding spread | 1.51% | 1.21% |
Recurring | Other Secured Financings | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 250 | $ 434 |
Recurring | Other Secured Financings | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Comparable bond price | 14.00% | |
Recurring | Other Secured Financings | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Comparable bond price | 58.00% | |
Recurring | Other Secured Financings | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Comparable bond price | 30.00% | |
Recurring | Other Secured Financings | Discounted Cash Flow | ||
Fair Value Inputs | ||
Discount rate | 4.00% | |
Recurring | Other Secured Financings | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Funding spread | 0.38% | 0.63% |
Recurring | Other Secured Financings | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Funding spread | 0.81% | 0.92% |
Recurring | Other Secured Financings | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Funding spread | 0.60% | 0.78% |
Recurring | Other Secured Financings | Option Model | ||
Fair Value Inputs | ||
Volatility Skew | (1.00%) | (1.00%) |
Recurring | Other Secured Financings | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 10.00% | |
Recurring | Other Secured Financings | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 40.00% | |
Recurring | Other Secured Financings | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 25.00% | |
Recurring | Long-term Borrowings | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 2,603 | $ 2,012 |
Recurring | Long-term Borrowings | Comparable Pricing | ||
Fair Value Inputs | ||
Comparable equity price | 100.00% | |
Recurring | Long-term Borrowings | Option Model | ||
Fair Value Inputs | ||
Interest rate volatility skew | 25.00% | |
Recurring | Long-term Borrowings | Option Model | Simple Average | ||
Fair Value Inputs | ||
Equity volatility discount | 9.00% | 10.00% |
Interest rate - Foreign exchange correlation | 23.00% | |
Interest rate volatility skew | 44.00% | |
Recurring | Long-term Borrowings | Option Model | Median | ||
Fair Value Inputs | ||
Equity volatility discount | 8.00% | 10.00% |
Interest rate - Foreign exchange correlation | 22.00% | |
Interest rate volatility skew | 44.00% | |
Recurring | Long-term Borrowings | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 5.00% | 7.00% |
Equity - Equity correlation | 36.00% | 35.00% |
Equity - Foreign exchange correlation | (51.00%) | (63.00%) |
Equity volatility discount | 8.00% | 7.00% |
Interest rate - Foreign exchange correlation | 21.00% | |
Interest rate volatility skew | 29.00% | |
Volatility Skew | (3.00%) | (2.00%) |
Recurring | Long-term Borrowings | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 35.00% | 42.00% |
Equity - Equity correlation | 98.00% | 99.00% |
Equity - Foreign exchange correlation | 10.00% | 13.00% |
Equity volatility discount | 11.00% | 11.00% |
Interest rate - Foreign exchange correlation | 22.00% | |
Interest rate volatility skew | 106.00% | |
Volatility Skew | 0.00% | 0.00% |
Recurring | Long-term Borrowings | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 21.00% | 30.00% |
Equity - Equity correlation | 88.00% | 84.00% |
Equity - Foreign exchange correlation | (32.00%) | (40.00%) |
Volatility Skew | (1.00%) | (1.00%) |
Nonrecurring | Loans | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 1,448 | $ 2,443 |
Nonrecurring | Loans | Corporate Loan Model | Minimum | ||
Fair Value Inputs | ||
Credit spread | 0.86% | 0.90% |
Nonrecurring | Loans | Corporate Loan Model | Maximum | ||
Fair Value Inputs | ||
Credit spread | 5.63% | 4.87% |
Nonrecurring | Loans | Corporate Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Credit spread | 2.29% | 2.08% |
Nonrecurring | Loans | Expected Recovery | Minimum | ||
Fair Value Inputs | ||
Asset coverage | 73.00% | 73.00% |
Nonrecurring | Loans | Expected Recovery | Maximum | ||
Fair Value Inputs | ||
Asset coverage | 95.00% | 99.00% |
Nonrecurring | Loans | Expected Recovery | Weighted Average | ||
Fair Value Inputs | ||
Asset coverage | 84.00% | 97.00% |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value of Investments Measured at NAV) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | $ 2,552 | $ 2,816 |
Commitment | 531 | 475 |
Private Equity Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 1,580 | 1,566 |
Commitment | 359 | 335 |
Fair Value of Nonredeemable Funds by Contractual Maturity | ||
Less than 5 years | 408 | |
5-10 years | 1,005 | |
Over 10 years | 167 | |
Total | 1,580 | |
Real Estate Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 885 | 1,103 |
Commitment | 168 | 136 |
Fair Value of Nonredeemable Funds by Contractual Maturity | ||
Less than 5 years | 77 | |
5-10 years | 490 | |
Over 10 years | 318 | |
Total | 885 | |
Hedge Funds | ||
Fair Value of Investments that Calculate Net Asset Value | ||
Fair Value | 87 | 147 |
Commitment | $ 4 | $ 4 |
Fair Value Disclosures (Earning
Fair Value Disclosures (Earnings Impact of Instruments Under to the Fair Value Option) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Securities Purchased Under Agreements to Resell | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | $ 0 | $ 1 | $ 1 | $ 4 |
Deposits | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (1) | 2 | (2) | (2) |
Short-term Borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (7) | (39) | (17) | (3) |
Securities Sold Under Agreements to Repurchase | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | 1 | 3 | (8) | (14) |
Long-term Borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (1,064) | (1,184) | (3,805) | (3,707) |
Trading Revenues | Securities Purchased Under Agreements to Resell | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (1) | (1) | (2) | (2) |
Trading Revenues | Deposits | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (1) | 2 | (2) | (1) |
Trading Revenues | Short-term Borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (7) | (39) | (16) | (3) |
Trading Revenues | Securities Sold Under Agreements to Repurchase | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | 6 | 7 | 5 | (5) |
Trading Revenues | Long-term Borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (957) | (1,068) | (3,468) | (3,322) |
Interest Income (Expense) | Securities Purchased Under Agreements to Resell | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | 1 | 2 | 3 | 6 |
Interest Income (Expense) | Deposits | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | 0 | 0 | 0 | (1) |
Interest Income (Expense) | Short-term Borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | 0 | 0 | (1) | 0 |
Interest Income (Expense) | Securities Sold Under Agreements to Repurchase | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | (5) | (4) | (13) | (9) |
Interest Income (Expense) | Long-term Borrowings | ||||
Fair Value Option Quantitative Disclosures | ||||
Gains (losses) included in net revenues | $ (107) | $ (116) | $ (337) | $ (385) |
Fair Value Disclosures (Gains (
Fair Value Disclosures (Gains (Losses) Due to Changes in Instrument-Specific Credit Risk) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value disclosure | |||||
Cumulative pre-tax DVA gain (loss) recognized in AOCI | $ (1,420) | $ (1,420) | $ (921) | ||
Short-term and Long-term Borrowings | OCI | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | (226) | $ (140) | (493) | $ 405 | |
Short-term and Long-term Borrowings | Trading Revenues | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | 9 | (5) | 1 | 36 | |
Securities Sold Under Agreements to Repurchase | OCI | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | (3) | (3) | (6) | 0 | |
Securities Sold Under Agreements to Repurchase | Trading Revenues | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | 0 | 0 | 0 | 0 | |
Loans and Other Debt | OCI | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | 0 | 0 | 0 | 0 | |
Loans and Other Debt | Trading Revenues | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | 49 | 26 | 94 | (88) | |
Lending Commitments | OCI | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | 0 | 0 | 0 | 0 | |
Lending Commitments | Trading Revenues | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | $ 0 | $ 0 | $ 0 | $ 3 |
Fair Value Disclosures (Short-t
Fair Value Disclosures (Short-term and Long-term Borrowings Measured at Fair Value) (Details) - Recurring - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Measurements | ||
Short-term and long-term borrowings | $ 46,889 | $ 39,142 |
Equity | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | 25,300 | 21,066 |
Interest Rates | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | 19,822 | 16,051 |
Foreign Exchange | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | 782 | 1,114 |
Credit Contracts | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | 753 | 647 |
Commodities | ||
Fair Value Measurements | ||
Short-term and long-term borrowings | $ 232 | $ 264 |
Fair Value Disclosures (Net Dif
Fair Value Disclosures (Net Difference of Contractual Principal Amount Over Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures | ||
Loans and other debt | $ 12,911 | $ 13,495 |
Loans 90 or more days past due and/or on nonaccrual status | 11,116 | 11,502 |
Short-term and long-term debt borrowings | $ 906 | $ 720 |
Fair Value Disclosures (Fair 54
Fair Value Disclosures (Fair Value of Loans in Nonaccrual Status) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures | ||
Nonaccrual loans | $ 1,429 | $ 1,536 |
Nonaccrual loans 90 or more days past due | $ 760 | $ 787 |
Fair Value Disclosures (Asset55
Fair Value Disclosures (Assets Measured at Fair Value on a Non-Recurring Basis) (Details) - Nonrecurring - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value | |||||
Loans | $ 2,713 | $ 2,713 | $ 4,913 | ||
Other assets-Other investments | 42 | 42 | 123 | ||
Other assets-Premises, equipment and software costs | 25 | ||||
Total assets | 2,755 | 2,755 | 5,061 | ||
Other liabilities and accrued expenses-Lending commitments | 196 | 196 | 226 | ||
Total liabilities | 196 | 196 | 226 | ||
Assets | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) included in net revenues | (7) | $ 77 | 28 | $ (61) | |
Loans | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) included in net revenues | 0 | 111 | 41 | 41 | |
Other Assets-Other Investments | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) included in net revenues | (6) | (3) | (6) | (44) | |
Other Assets-Premises, Equipment and Software Costs | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) included in net revenues | (1) | (29) | (7) | (56) | |
Intangible Assets | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) included in net revenues | 0 | (2) | 0 | (2) | |
Liabilities | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) included in net revenues | 4 | 52 | 64 | 98 | |
Other Liabilities and Accrued Expenses-Lending Commitments | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) included in net revenues | 4 | $ 52 | 64 | $ 98 | |
Level 2 | |||||
Fair Value | |||||
Loans | 1,265 | 1,265 | 2,470 | ||
Other assets-Other investments | 0 | 0 | 0 | ||
Other assets-Premises, equipment and software costs | 22 | ||||
Total assets | 1,265 | 1,265 | 2,492 | ||
Other liabilities and accrued expenses-Lending commitments | 154 | 154 | 166 | ||
Total liabilities | 154 | 154 | 166 | ||
Level 3 | |||||
Fair Value | |||||
Loans | 1,448 | 1,448 | 2,443 | ||
Other assets-Other investments | 42 | 42 | 123 | ||
Other assets-Premises, equipment and software costs | 3 | ||||
Total assets | 1,490 | 1,490 | 2,569 | ||
Other liabilities and accrued expenses-Lending commitments | 42 | 42 | 60 | ||
Total liabilities | $ 42 | $ 42 | $ 60 |
Fair Value Disclosures (Financi
Fair Value Disclosures (Financial Instruments Not Measured at Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Financial Assets | |||
Cash and due from banks | $ 24,047 | $ 22,017 | $ 26,899 |
Interest bearing deposits with banks | 24,144 | 21,364 | $ 15,653 |
Securities purchased under agreements to resell | 90,106 | 101,955 | |
Securities borrowed | 132,892 | 125,236 | |
Customer and other receivables | 54,388 | 46,460 | |
Loans | 91,207 | 81,704 | |
Other assets | 32,731 | 33,979 | |
Financial Liabilities | |||
Deposits | 154,639 | 155,863 | |
Short-term borrowings | 1,087 | 941 | |
Securities sold under agreement to repurchase | 53,983 | 54,628 | |
Securities loaned | 15,630 | 15,844 | |
Other secured financings | 14,244 | 11,118 | |
Customer and other payables | 198,792 | 190,513 | |
Long-term borrowings | 191,677 | 164,775 | |
Additional Disclosures | |||
Commitment amount | 96,939 | 97,409 | |
Carrying Value | |||
Financial Assets | |||
Cash and due from banks | 24,047 | 22,017 | |
Interest bearing deposits with banks | 24,144 | 21,364 | |
Investment securities - HTM securities | 24,132 | 16,922 | |
Securities purchased under agreements to resell | 90,005 | 101,653 | |
Securities borrowed | 132,892 | 125,236 | |
Customer and other receivables | 48,579 | 41,679 | |
Loans | 104,431 | 94,248 | |
Other assets | 32,731 | 33,979 | |
Financial Liabilities | |||
Deposits | 154,465 | 155,800 | |
Short-term borrowings | 429 | 535 | |
Securities sold under agreement to repurchase | 53,173 | 53,899 | |
Securities loaned | 15,630 | 15,844 | |
Other secured financings | 7,730 | 6,077 | |
Customer and other payables | 195,304 | 187,497 | |
Long-term borrowings | 145,446 | 126,039 | |
Fair Value | |||
Financial Assets | |||
Cash and due from banks | 24,047 | 22,017 | |
Interest bearing deposits with banks | 24,144 | 21,364 | |
Investment securities - HTM securities | 23,757 | 16,453 | |
Securities purchased under agreements to resell | 89,961 | 101,655 | |
Securities borrowed | 132,893 | 125,240 | |
Customer and other receivables | 48,455 | 41,537 | |
Loans | 105,699 | 95,027 | |
Other assets | 32,731 | 33,979 | |
Financial Liabilities | |||
Deposits | 154,465 | 155,800 | |
Short-term borrowings | 429 | 535 | |
Securities sold under agreement to repurchase | 53,161 | 53,913 | |
Securities loaned | 15,642 | 15,853 | |
Other secured financings | 7,737 | 6,082 | |
Customer and other payables | 195,304 | 187,497 | |
Long-term borrowings | 150,664 | 129,877 | |
Additional Disclosures | |||
Loans and lending commitments at fair value | 1,084 | 1,241 | |
Fair Value | Level 1 | |||
Financial Assets | |||
Cash and due from banks | 24,047 | 22,017 | |
Interest bearing deposits with banks | 24,144 | 21,364 | |
Investment securities - HTM securities | 11,260 | 5,557 | |
Securities purchased under agreements to resell | 0 | 0 | |
Securities borrowed | 0 | 0 | |
Customer and other receivables | 0 | 0 | |
Loans | 0 | 0 | |
Other assets | 32,731 | 33,979 | |
Financial Liabilities | |||
Deposits | 0 | 0 | |
Short-term borrowings | 0 | 0 | |
Securities sold under agreement to repurchase | 0 | 0 | |
Securities loaned | 0 | 0 | |
Other secured financings | 0 | 0 | |
Customer and other payables | 0 | 0 | |
Long-term borrowings | 0 | 0 | |
Fair Value | Level 2 | |||
Financial Assets | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits with banks | 0 | 0 | |
Investment securities - HTM securities | 12,250 | 10,896 | |
Securities purchased under agreements to resell | 85,679 | 97,825 | |
Securities borrowed | 132,883 | 125,093 | |
Customer and other receivables | 44,340 | 36,962 | |
Loans | 19,476 | 20,906 | |
Other assets | 0 | 0 | |
Financial Liabilities | |||
Deposits | 154,465 | 155,800 | |
Short-term borrowings | 429 | 535 | |
Securities sold under agreement to repurchase | 48,505 | 50,941 | |
Securities loaned | 15,240 | 15,853 | |
Other secured financings | 6,440 | 4,792 | |
Customer and other payables | 195,304 | 187,497 | |
Long-term borrowings | 150,625 | 129,826 | |
Additional Disclosures | |||
Loans and lending commitments at fair value | 636 | 973 | |
Fair Value | Level 3 | |||
Financial Assets | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits with banks | 0 | 0 | |
Investment securities - HTM securities | 247 | 0 | |
Securities purchased under agreements to resell | 4,282 | 3,830 | |
Securities borrowed | 10 | 147 | |
Customer and other receivables | 4,115 | 4,575 | |
Loans | 86,223 | 74,121 | |
Other assets | 0 | 0 | |
Financial Liabilities | |||
Deposits | 0 | 0 | |
Short-term borrowings | 0 | 0 | |
Securities sold under agreement to repurchase | 4,656 | 2,972 | |
Securities loaned | 402 | 0 | |
Other secured financings | 1,297 | 1,290 | |
Customer and other payables | 0 | 0 | |
Long-term borrowings | 39 | 51 | |
Additional Disclosures | |||
Loans and lending commitments at fair value | $ 448 | $ 268 |
Derivative Instruments and He57
Derivative Instruments and Hedging Activities (Derivative Assets and Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Assets | |||
Gross derivatives | $ 308,406 | $ 442,452 | |
Amounts offset: Counterparty netting | (234,670) | (363,572) | |
Amounts offset: Cash collateral netting | (42,361) | (47,674) | |
Total in Trading Assets | 31,375 | 31,206 | |
Amounts not offset: Financial instruments collateral | (12,241) | (10,293) | |
Amounts not offset: Other cash collateral | (13) | (124) | |
Net amounts | 19,121 | 20,789 | |
Derivative assets not subject to legally enforceable master netting or collateral agreements | 3,848 | 3,656 | |
Derivative Liabilities | |||
Gross derivatives | 289,578 | 428,983 | |
Counterparty netting | (234,670) | (363,572) | |
Cash collateral netting | (30,469) | (36,096) | |
Total in Trading Liabilities | 24,439 | 29,315 | |
Amounts not offset against financial instruments collateral | (5,532) | (8,223) | |
Amounts not offset against other cash collateral | (91) | (11) | |
Net amounts | 18,816 | 21,081 | |
Derivative liabilities not subject to legally enforceable master netting or collateral agreements | 3,508 | 3,497 | |
Decrease of gross derivative assets | 62,000 | $ 13,000 | |
Decrease of gross derivative liabilities | 59,000 | $ 20,000 | |
Bilateral OTC | |||
Derivative Assets | |||
Gross derivatives | 274,083 | 316,493 | |
Amounts offset: Counterparty netting | (206,283) | (243,488) | |
Amounts offset: Cash collateral netting | (40,379) | (45,875) | |
Total in Trading Assets | 27,421 | 27,130 | |
Amounts not offset: Financial instruments collateral | (12,241) | (10,293) | |
Amounts not offset: Other cash collateral | (13) | (124) | |
Net amounts | 15,167 | 16,713 | |
Derivative Liabilities | |||
Gross derivatives | 257,743 | 299,588 | |
Counterparty netting | (206,283) | (243,488) | |
Cash collateral netting | (30,021) | (30,405) | |
Total in Trading Liabilities | 21,439 | 25,695 | |
Amounts not offset against financial instruments collateral | (5,035) | (7,638) | |
Amounts not offset against other cash collateral | (10) | (10) | |
Net amounts | 16,394 | 18,047 | |
Cleared OTC | |||
Derivative Assets | |||
Gross derivatives | 9,301 | 103,698 | |
Amounts offset: Counterparty netting | (6,917) | (100,477) | |
Amounts offset: Cash collateral netting | (1,982) | (1,799) | |
Total in Trading Assets | 402 | 1,422 | |
Amounts not offset: Financial instruments collateral | 0 | 0 | |
Amounts not offset: Other cash collateral | 0 | 0 | |
Net amounts | 402 | 1,422 | |
Derivative Liabilities | |||
Gross derivatives | 7,673 | 107,417 | |
Counterparty netting | (6,917) | (100,477) | |
Cash collateral netting | (448) | (5,691) | |
Total in Trading Liabilities | 308 | 1,249 | |
Amounts not offset against financial instruments collateral | 0 | 0 | |
Amounts not offset against other cash collateral | (81) | (1) | |
Net amounts | 227 | 1,248 | |
Exchange Traded | |||
Derivative Assets | |||
Gross derivatives | 25,022 | 22,261 | |
Amounts offset: Counterparty netting | (21,470) | (19,607) | |
Amounts offset: Cash collateral netting | 0 | 0 | |
Total in Trading Assets | 3,552 | 2,654 | |
Amounts not offset: Financial instruments collateral | 0 | 0 | |
Amounts not offset: Other cash collateral | 0 | 0 | |
Net amounts | 3,552 | 2,654 | |
Derivative Liabilities | |||
Gross derivatives | 24,162 | 21,978 | |
Counterparty netting | (21,470) | (19,607) | |
Cash collateral netting | 0 | 0 | |
Total in Trading Liabilities | 2,692 | 2,371 | |
Amounts not offset against financial instruments collateral | (497) | (585) | |
Amounts not offset against other cash collateral | 0 | 0 | |
Net amounts | 2,195 | 1,786 | |
Designated as Accounting Hedges | |||
Derivative Assets | |||
Gross derivatives | 1,483 | 3,240 | |
Derivative Liabilities | |||
Gross derivatives | 134 | 764 | |
Designated as Accounting Hedges | Bilateral OTC | |||
Derivative Assets | |||
Gross derivatives | 1,473 | 2,173 | |
Derivative Liabilities | |||
Gross derivatives | 113 | 92 | |
Designated as Accounting Hedges | Cleared OTC | |||
Derivative Assets | |||
Gross derivatives | 10 | 1,067 | |
Derivative Liabilities | |||
Gross derivatives | 21 | 672 | |
Designated as Accounting Hedges | Exchange Traded | |||
Derivative Assets | |||
Gross derivatives | 0 | 0 | |
Derivative Liabilities | |||
Gross derivatives | 0 | 0 | |
Designated as Accounting Hedges | Interest Rate Contracts | |||
Derivative Assets | |||
Gross derivatives | 1,381 | 2,973 | |
Derivative Liabilities | |||
Gross derivatives | 66 | 724 | |
Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross derivatives | 1,380 | 1,924 | |
Derivative Liabilities | |||
Gross derivatives | 66 | 77 | |
Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross derivatives | 1 | 1,049 | |
Derivative Liabilities | |||
Gross derivatives | 0 | 647 | |
Designated as Accounting Hedges | Interest Rate Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross derivatives | 0 | 0 | |
Derivative Liabilities | |||
Gross derivatives | 0 | 0 | |
Designated as Accounting Hedges | Foreign Exchange Contracts | |||
Derivative Assets | |||
Gross derivatives | 102 | 267 | |
Derivative Liabilities | |||
Gross derivatives | 68 | 40 | |
Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross derivatives | 93 | 249 | |
Derivative Liabilities | |||
Gross derivatives | 47 | 15 | |
Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross derivatives | 9 | 18 | |
Derivative Liabilities | |||
Gross derivatives | 21 | 25 | |
Designated as Accounting Hedges | Foreign Exchange Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross derivatives | 0 | 0 | |
Derivative Liabilities | |||
Gross derivatives | 0 | 0 | |
Not Designated as Accounting Hedges | |||
Derivative Assets | |||
Gross derivatives | 306,923 | 439,212 | |
Derivative Liabilities | |||
Gross derivatives | 289,444 | 428,219 | |
Not Designated as Accounting Hedges | Bilateral OTC | |||
Derivative Assets | |||
Gross derivatives | 272,610 | 314,320 | |
Derivative Liabilities | |||
Gross derivatives | 257,630 | 299,496 | |
Not Designated as Accounting Hedges | Cleared OTC | |||
Derivative Assets | |||
Gross derivatives | 9,291 | 102,631 | |
Derivative Liabilities | |||
Gross derivatives | 7,652 | 106,745 | |
Not Designated as Accounting Hedges | Exchange Traded | |||
Derivative Assets | |||
Gross derivatives | 25,022 | 22,261 | |
Derivative Liabilities | |||
Gross derivatives | 24,162 | 21,978 | |
Not Designated as Accounting Hedges | Interest Rate Contracts | |||
Derivative Assets | |||
Gross derivatives | 184,419 | 299,937 | |
Derivative Liabilities | |||
Gross derivatives | 166,393 | 286,852 | |
Not Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross derivatives | 177,955 | 200,336 | |
Derivative Liabilities | |||
Gross derivatives | 161,790 | 183,063 | |
Not Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross derivatives | 6,223 | 99,217 | |
Derivative Liabilities | |||
Gross derivatives | 4,419 | 103,392 | |
Not Designated as Accounting Hedges | Interest Rate Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross derivatives | 241 | 384 | |
Derivative Liabilities | |||
Gross derivatives | 184 | 397 | |
Not Designated as Accounting Hedges | Credit Contracts | |||
Derivative Assets | |||
Gross derivatives | 8,904 | 12,229 | |
Derivative Liabilities | |||
Gross derivatives | 10,033 | 13,425 | |
Not Designated as Accounting Hedges | Credit Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross derivatives | 6,599 | 9,837 | |
Derivative Liabilities | |||
Gross derivatives | 7,475 | 11,024 | |
Not Designated as Accounting Hedges | Credit Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross derivatives | 2,305 | 2,392 | |
Derivative Liabilities | |||
Gross derivatives | 2,558 | 2,401 | |
Not Designated as Accounting Hedges | Credit Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross derivatives | 0 | 0 | |
Derivative Liabilities | |||
Gross derivatives | 0 | 0 | |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | |||
Derivative Assets | |||
Gross derivatives | 53,880 | 74,898 | |
Derivative Liabilities | |||
Gross derivatives | 54,307 | 75,543 | |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross derivatives | 53,024 | 73,645 | |
Derivative Liabilities | |||
Gross derivatives | 53,580 | 74,575 | |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross derivatives | 763 | 1,022 | |
Derivative Liabilities | |||
Gross derivatives | 675 | 952 | |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross derivatives | 93 | 231 | |
Derivative Liabilities | |||
Gross derivatives | 52 | 16 | |
Not Designated as Accounting Hedges | Equity Contracts | |||
Derivative Assets | |||
Gross derivatives | 49,444 | 38,629 | |
Derivative Liabilities | |||
Gross derivatives | 51,026 | 40,514 | |
Not Designated as Accounting Hedges | Equity Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross derivatives | 26,915 | 20,710 | |
Derivative Liabilities | |||
Gross derivatives | 29,189 | 22,531 | |
Not Designated as Accounting Hedges | Equity Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross derivatives | 0 | 0 | |
Derivative Liabilities | |||
Gross derivatives | 0 | 0 | |
Not Designated as Accounting Hedges | Equity Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross derivatives | 22,529 | 17,919 | |
Derivative Liabilities | |||
Gross derivatives | 21,837 | 17,983 | |
Not Designated as Accounting Hedges | Commodity and Other Contracts | |||
Derivative Assets | |||
Gross derivatives | 10,276 | 13,519 | |
Derivative Liabilities | |||
Gross derivatives | 7,685 | 11,885 | |
Not Designated as Accounting Hedges | Commodity and Other Contracts | Bilateral OTC | |||
Derivative Assets | |||
Gross derivatives | 8,117 | 9,792 | |
Derivative Liabilities | |||
Gross derivatives | 5,596 | 8,303 | |
Not Designated as Accounting Hedges | Commodity and Other Contracts | Cleared OTC | |||
Derivative Assets | |||
Gross derivatives | 0 | 0 | |
Derivative Liabilities | |||
Gross derivatives | 0 | 0 | |
Not Designated as Accounting Hedges | Commodity and Other Contracts | Exchange Traded | |||
Derivative Assets | |||
Gross derivatives | 2,159 | 3,727 | |
Derivative Liabilities | |||
Gross derivatives | $ 2,089 | $ 3,582 |
Derivative Instruments and He58
Derivative Instruments and Hedging Activities (Derivative Notionals) (Details) - USD ($) $ in Billions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Notional Amount | ||
Derivative assets | $ 17,141 | $ 15,286 |
Derivative liabilities | 15,313 | 13,307 |
Bilateral OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 6,921 | 5,940 |
Derivative liabilities | 6,808 | 5,780 |
Cleared OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 6,907 | 6,426 |
Derivative liabilities | 7,013 | 6,284 |
Exchange Traded | ||
Derivatives, Notional Amount | ||
Derivative assets | 3,313 | 2,920 |
Derivative liabilities | 1,492 | 1,243 |
Designated as Accounting Hedges | ||
Derivatives, Notional Amount | ||
Derivative assets | 75 | 74 |
Derivative liabilities | 103 | 56 |
Designated as Accounting Hedges | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 68 | 68 |
Derivative liabilities | 99 | 54 |
Designated as Accounting Hedges | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 7 | 6 |
Derivative liabilities | 4 | 2 |
Designated as Accounting Hedges | Bilateral OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 30 | 36 |
Derivative liabilities | 5 | 3 |
Designated as Accounting Hedges | Bilateral OTC | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 24 | 30 |
Derivative liabilities | 2 | 2 |
Designated as Accounting Hedges | Bilateral OTC | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 6 | 6 |
Derivative liabilities | 3 | 1 |
Designated as Accounting Hedges | Cleared OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 45 | 38 |
Derivative liabilities | 98 | 53 |
Designated as Accounting Hedges | Cleared OTC | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 44 | 38 |
Derivative liabilities | 97 | 52 |
Designated as Accounting Hedges | Cleared OTC | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 1 | 0 |
Derivative liabilities | 1 | 1 |
Designated as Accounting Hedges | Exchange Traded | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Designated as Accounting Hedges | Exchange Traded | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Designated as Accounting Hedges | Exchange Traded | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | ||
Derivatives, Notional Amount | ||
Derivative assets | 17,066 | 15,212 |
Derivative liabilities | 15,210 | 13,251 |
Not Designated as Accounting Hedges | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 13,507 | 12,396 |
Derivative liabilities | 11,696 | 10,446 |
Not Designated as Accounting Hedges | Credit Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 352 | 445 |
Derivative liabilities | 363 | 455 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 2,331 | 1,645 |
Derivative liabilities | 2,225 | 1,619 |
Not Designated as Accounting Hedges | Equity Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 711 | 580 |
Derivative liabilities | 790 | 594 |
Not Designated as Accounting Hedges | Commodity and Other Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 165 | 146 |
Derivative liabilities | 136 | 137 |
Not Designated as Accounting Hedges | Bilateral OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 6,891 | 5,904 |
Derivative liabilities | 6,803 | 5,777 |
Not Designated as Accounting Hedges | Bilateral OTC | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 3,952 | 3,586 |
Derivative liabilities | 3,919 | 3,462 |
Not Designated as Accounting Hedges | Bilateral OTC | Credit Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 242 | 333 |
Derivative liabilities | 271 | 359 |
Not Designated as Accounting Hedges | Bilateral OTC | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 2,224 | 1,580 |
Derivative liabilities | 2,137 | 1,557 |
Not Designated as Accounting Hedges | Bilateral OTC | Equity Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 388 | 338 |
Derivative liabilities | 409 | 321 |
Not Designated as Accounting Hedges | Bilateral OTC | Commodity and Other Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 85 | 67 |
Derivative liabilities | 67 | 78 |
Not Designated as Accounting Hedges | Cleared OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 6,862 | 6,388 |
Derivative liabilities | 6,915 | 6,231 |
Not Designated as Accounting Hedges | Cleared OTC | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 6,675 | 6,224 |
Derivative liabilities | 6,749 | 6,087 |
Not Designated as Accounting Hedges | Cleared OTC | Credit Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 110 | 112 |
Derivative liabilities | 92 | 96 |
Not Designated as Accounting Hedges | Cleared OTC | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 77 | 52 |
Derivative liabilities | 74 | 48 |
Not Designated as Accounting Hedges | Cleared OTC | Equity Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | Cleared OTC | Commodity and Other Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | Exchange Traded | ||
Derivatives, Notional Amount | ||
Derivative assets | 3,313 | 2,920 |
Derivative liabilities | 1,492 | 1,243 |
Not Designated as Accounting Hedges | Exchange Traded | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 2,880 | 2,586 |
Derivative liabilities | 1,028 | 897 |
Not Designated as Accounting Hedges | Exchange Traded | Credit Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Not Designated as Accounting Hedges | Exchange Traded | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 30 | 13 |
Derivative liabilities | 14 | 14 |
Not Designated as Accounting Hedges | Exchange Traded | Equity Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 323 | 242 |
Derivative liabilities | 381 | 273 |
Not Designated as Accounting Hedges | Exchange Traded | Commodity and Other Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 80 | 79 |
Derivative liabilities | $ 69 | $ 59 |
Derivative Instruments and He59
Derivative Instruments and Hedging Activities (Gains (Losses) on Fair Value Hedges and on Effective Portion of Net Investment Hedges, and Trading Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Trading Revenues by Product Type | ||||
Trading revenues | $ 2,704 | $ 2,609 | ||
Trading revenues | 2,704 | 2,609 | $ 8,870 | $ 7,420 |
Interest Rate Contracts | ||||
Trading Revenues by Product Type | ||||
Trading revenues | 648 | 357 | 1,693 | 983 |
Foreign Exchange Contracts | ||||
Trading Revenues by Product Type | ||||
Trading revenues | 181 | 170 | 613 | 769 |
Equity Security and Index Contracts | ||||
Trading Revenues by Product Type | ||||
Trading revenues | 1,416 | 1,415 | 4,875 | 4,360 |
Commodity and Other Contracts | ||||
Trading Revenues by Product Type | ||||
Trading revenues | 223 | 63 | 522 | (61) |
Credit Contracts | ||||
Trading Revenues by Product Type | ||||
Trading revenues | 236 | 604 | 1,167 | 1,369 |
Fair Value Hedges | Interest Expense | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | ||||
Gains (losses) recognized in earnings | (43) | 57 | (208) | (106) |
Fair Value Hedges | Interest Expense | Derivatives | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | ||||
Gains (losses) recognized in earnings | (218) | (733) | (878) | 2,386 |
Fair Value Hedges | Interest Expense | Borrowings | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | ||||
Gains (losses) recognized in earnings | 175 | 790 | 670 | (2,492) |
Net Investment Hedges | Foreign Exchange Contracts | ||||
Gains (Losses) Recognized in Other Comprehensive Income (Loss), Effective Portion | ||||
Gains (losses) recognized in OCI | (88) | (60) | (340) | (396) |
Forward points excluded from hedge effectiveness testing - Interest income | $ (3) | $ (20) | $ (22) | $ (59) |
Derivative Instruments and He60
Derivative Instruments and Hedging Activities (Credit Risk-Related Contingencies) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives | ||
Net derivative liabilities with credit-risk-related contingent features | $ 19,359 | $ 22,939 |
Collateral posted | 14,499 | $ 17,040 |
Bilateral arrangement | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade of either party under bilateral arrangements | 873 | |
One-notch Downgrade | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade of either party under bilateral arrangements | 592 | |
Two-notch Downgrade | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade of either party under bilateral arrangements | $ 512 |
Derivative Instruments and He61
Derivative Instruments and Hedging Activities (Credit Derivatives and Other Credit Contracts) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Protection Sold | ||
Credit Derivatives | ||
Notional | $ 340,507 | $ 430,000 |
Fair value (asset)/liability | (1,991) | (1,049) |
Protection Sold | Less than 1 (Year) | ||
Credit Derivatives | ||
Notional | 118,660 | 166,734 |
Protection Sold | 1 - 3 (Years) | ||
Credit Derivatives | ||
Notional | 85,300 | 140,993 |
Protection Sold | 3 - 5 (Years) | ||
Credit Derivatives | ||
Notional | 82,668 | 91,784 |
Protection Sold | Over 5 (Years) | ||
Credit Derivatives | ||
Notional | 53,879 | 30,489 |
Protection Sold | Credit Default Swaps | ||
Credit Derivatives | ||
Notional | 340,358 | 429,730 |
Fair value (asset)/liability | (2,004) | (1,049) |
Protection Sold | Credit Default Swaps | Less than 1 (Year) | ||
Credit Derivatives | ||
Notional | 118,646 | 166,685 |
Protection Sold | Credit Default Swaps | 1 - 3 (Years) | ||
Credit Derivatives | ||
Notional | 85,300 | 140,987 |
Protection Sold | Credit Default Swaps | 3 - 5 (Years) | ||
Credit Derivatives | ||
Notional | 82,668 | 91,784 |
Protection Sold | Credit Default Swaps | Over 5 (Years) | ||
Credit Derivatives | ||
Notional | 53,744 | 30,274 |
Protection Sold | Single Name | ||
Credit Derivatives | ||
Notional | 173,202 | 266,918 |
Fair value (asset)/liability | (1,400) | (753) |
Protection Sold | Single Name | Investment Grade | ||
Credit Derivatives | ||
Notional | 124,322 | 195,067 |
Fair value (asset)/liability | (1,220) | (1,060) |
Protection Sold | Single Name | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 48,880 | 71,851 |
Fair value (asset)/liability | (180) | 307 |
Protection Sold | Single Name | Less than 1 (Year) | ||
Credit Derivatives | ||
Notional | 66,899 | 114,020 |
Protection Sold | Single Name | Less than 1 (Year) | Investment Grade | ||
Credit Derivatives | ||
Notional | 46,372 | 79,449 |
Protection Sold | Single Name | Less than 1 (Year) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 20,527 | 34,571 |
Protection Sold | Single Name | 1 - 3 (Years) | ||
Credit Derivatives | ||
Notional | 64,255 | 96,616 |
Protection Sold | Single Name | 1 - 3 (Years) | Investment Grade | ||
Credit Derivatives | ||
Notional | 44,877 | 70,796 |
Protection Sold | Single Name | 1 - 3 (Years) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 19,378 | 25,820 |
Protection Sold | Single Name | 3 - 5 (Years) | ||
Credit Derivatives | ||
Notional | 28,621 | 44,965 |
Protection Sold | Single Name | 3 - 5 (Years) | Investment Grade | ||
Credit Derivatives | ||
Notional | 21,662 | 34,529 |
Protection Sold | Single Name | 3 - 5 (Years) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 6,959 | 10,436 |
Protection Sold | Single Name | Over 5 (Years) | ||
Credit Derivatives | ||
Notional | 13,427 | 11,317 |
Protection Sold | Single Name | Over 5 (Years) | Investment Grade | ||
Credit Derivatives | ||
Notional | 11,411 | 10,293 |
Protection Sold | Single Name | Over 5 (Years) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 2,016 | 1,024 |
Protection Sold | Total Index and Basket Credit Default Swaps | ||
Credit Derivatives | ||
Notional | 167,156 | 162,812 |
Fair value (asset)/liability | (604) | (296) |
Protection Sold | Total Index and Basket Credit Default Swaps | Investment Grade | ||
Credit Derivatives | ||
Notional | 84,891 | 92,074 |
Fair value (asset)/liability | (885) | (846) |
Protection Sold | Total Index and Basket Credit Default Swaps | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 82,265 | 70,738 |
Fair value (asset)/liability | 281 | 550 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 (Year) | ||
Credit Derivatives | ||
Notional | 51,747 | 52,665 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 (Year) | Investment Grade | ||
Credit Derivatives | ||
Notional | 23,097 | 26,530 |
Protection Sold | Total Index and Basket Credit Default Swaps | Less than 1 (Year) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 28,650 | 26,135 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 (Years) | ||
Credit Derivatives | ||
Notional | 21,045 | 44,371 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 (Years) | Investment Grade | ||
Credit Derivatives | ||
Notional | 13,752 | 21,388 |
Protection Sold | Total Index and Basket Credit Default Swaps | 1 - 3 (Years) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 7,293 | 22,983 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 (Years) | ||
Credit Derivatives | ||
Notional | 54,047 | 46,819 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 (Years) | Investment Grade | ||
Credit Derivatives | ||
Notional | 28,918 | 35,060 |
Protection Sold | Total Index and Basket Credit Default Swaps | 3 - 5 (Years) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 25,129 | 11,759 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 (Years) | ||
Credit Derivatives | ||
Notional | 40,317 | 18,957 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 (Years) | Investment Grade | ||
Credit Derivatives | ||
Notional | 19,124 | 9,096 |
Protection Sold | Total Index and Basket Credit Default Swaps | Over 5 (Years) | Non-investment Grade | ||
Credit Derivatives | ||
Notional | 21,193 | 9,861 |
Protection Sold | Index and Basket | ||
Credit Derivatives | ||
Notional | 145,107 | 130,383 |
Fair value (asset)/liability | (237) | 374 |
Protection Sold | Tranched Index and Basket | ||
Credit Derivatives | ||
Notional | 22,049 | 32,429 |
Fair value (asset)/liability | (367) | (670) |
Protection Sold | Single Name, and Non-tranched Index and Basket With Identical Underlying Reference Obligations | ||
Credit Derivatives | ||
Notional | 315,931 | 395,536 |
Protection Sold | Other Credit Contracts | ||
Credit Derivatives | ||
Notional | 149 | 270 |
Fair value (asset)/liability | 13 | 0 |
Protection Sold | Other Credit Contracts | Less than 1 (Year) | ||
Credit Derivatives | ||
Notional | 14 | 49 |
Protection Sold | Other Credit Contracts | 1 - 3 (Years) | ||
Credit Derivatives | ||
Notional | 0 | 6 |
Protection Sold | Other Credit Contracts | 3 - 5 (Years) | ||
Credit Derivatives | ||
Notional | 0 | 0 |
Protection Sold | Other Credit Contracts | Over 5 (Years) | ||
Credit Derivatives | ||
Notional | 135 | 215 |
Protection Purchased | Credit Default Swaps | ||
Credit Derivatives | ||
Notional | 375,048 | 470,189 |
Fair value (asset)/liability | 3,133 | 2,245 |
Protection Purchased | Single Name | ||
Credit Derivatives | ||
Notional | 189,290 | 269,623 |
Fair value (asset)/liability | 1,803 | 826 |
Protection Purchased | Index and Basket | ||
Credit Derivatives | ||
Notional | 141,565 | 122,061 |
Fair value (asset)/liability | 264 | (481) |
Protection Purchased | Tranched Index and Basket | ||
Credit Derivatives | ||
Notional | 44,193 | 78,505 |
Fair value (asset)/liability | 1,066 | 1,900 |
Protection Purchased | Single Name, and Non-tranched Index and Basket With Identical Underlying Reference Obligations | ||
Credit Derivatives | ||
Notional | $ 327,959 | $ 389,221 |
Investment Securities (AFS and
Investment Securities (AFS and HTM Securities) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investment securities | ||
Total Investment securities: Amortized cost | $ 79,675 | $ 81,028 |
Total Investment securities: Gross unrealized gains | 101 | 43 |
Total Investment securities: Gross unrealized losses | 1,065 | 1,448 |
Total Investment securities: Fair value | 78,711 | 79,623 |
AFS securities | ||
AFS debt securities: Amortized cost | 55,528 | 64,091 |
AFS debt securities: Gross unrealized gains | 75 | 41 |
AFS debt securities: Gross unrealized losses | 653 | 968 |
AFS debt securities: Fair value | 54,950 | 63,164 |
AFS equity securities: Amortized cost | 15 | 15 |
AFS equity securities: Gross unrealized gains | 0 | 0 |
AFS equity securities: Gross unrealized losses | 11 | 9 |
AFS equity securities: Fair value | 4 | 6 |
Total AFS securities: Amortized cost | 55,543 | 64,106 |
Total AFS securities: Gross unrealized gains | 75 | 41 |
Total AFS securities: Gross unrealized losses | 664 | 977 |
Total AFS securities: Fair value | 54,954 | 63,170 |
HTM securities | ||
HTM: Amortized Cost | 24,132 | 16,922 |
HTM: Gross unrealized gains | 26 | 2 |
HTM: Gross unrealized losses | 401 | 471 |
HTM securities: Fair value | 23,757 | 16,453 |
U.S. Government and Agency Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 48,724 | 50,719 |
AFS debt securities: Gross unrealized gains | 42 | 15 |
AFS debt securities: Gross unrealized losses | 589 | 823 |
AFS debt securities: Fair value | 48,177 | 49,911 |
HTM securities | ||
HTM: Amortized Cost | 23,885 | |
HTM: Gross unrealized gains | 25 | |
HTM: Gross unrealized losses | 400 | |
HTM securities: Fair value | 23,510 | |
U.S. Treasury Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 24,706 | 28,371 |
AFS debt securities: Gross unrealized gains | 0 | 1 |
AFS debt securities: Gross unrealized losses | 425 | 545 |
AFS debt securities: Fair value | 24,281 | 27,827 |
HTM securities | ||
HTM: Amortized Cost | 11,501 | 5,839 |
HTM: Gross unrealized gains | 7 | 1 |
HTM: Gross unrealized losses | 249 | 283 |
HTM securities: Fair value | 11,259 | 5,557 |
U.S. Agency Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 24,018 | 22,348 |
AFS debt securities: Gross unrealized gains | 42 | 14 |
AFS debt securities: Gross unrealized losses | 164 | 278 |
AFS debt securities: Fair value | 23,896 | 22,084 |
HTM securities | ||
HTM: Amortized Cost | 12,384 | 11,083 |
HTM: Gross unrealized gains | 18 | 1 |
HTM: Gross unrealized losses | 151 | 188 |
HTM securities: Fair value | 12,251 | 10,896 |
Corporate and Other Debt | ||
AFS securities | ||
AFS debt securities: Amortized cost | 6,804 | 13,372 |
AFS debt securities: Gross unrealized gains | 33 | 26 |
AFS debt securities: Gross unrealized losses | 64 | 145 |
AFS debt securities: Fair value | 6,773 | 13,253 |
HTM securities | ||
HTM: Amortized Cost | 247 | |
HTM: Gross unrealized gains | 1 | |
HTM: Gross unrealized losses | 1 | |
HTM securities: Fair value | 247 | |
CMBS: Agency | ||
AFS securities | ||
AFS debt securities: Amortized cost | 1,452 | 1,850 |
AFS debt securities: Gross unrealized gains | 2 | 2 |
AFS debt securities: Gross unrealized losses | 42 | 44 |
AFS debt securities: Fair value | 1,412 | 1,808 |
CMBS: Non-Agency | ||
AFS securities | ||
AFS debt securities: Amortized cost | 1,215 | 2,250 |
AFS debt securities: Gross unrealized gains | 4 | 11 |
AFS debt securities: Gross unrealized losses | 7 | 16 |
AFS debt securities: Fair value | 1,212 | 2,245 |
HTM securities | ||
HTM: Amortized Cost | 247 | |
HTM: Gross unrealized gains | 1 | |
HTM: Gross unrealized losses | 1 | |
HTM securities: Fair value | 247 | |
Auto Loan ABS | ||
AFS securities | ||
AFS debt securities: Amortized cost | 1,509 | |
AFS debt securities: Gross unrealized gains | 1 | |
AFS debt securities: Gross unrealized losses | 1 | |
AFS debt securities: Fair value | 1,509 | |
Corporate Bonds | ||
AFS securities | ||
AFS debt securities: Amortized cost | 1,486 | 3,836 |
AFS debt securities: Gross unrealized gains | 13 | 7 |
AFS debt securities: Gross unrealized losses | 7 | 22 |
AFS debt securities: Fair value | 1,492 | 3,821 |
CLO | ||
AFS securities | ||
AFS debt securities: Amortized cost | 434 | 540 |
AFS debt securities: Gross unrealized gains | 1 | 0 |
AFS debt securities: Gross unrealized losses | 0 | 1 |
AFS debt securities: Fair value | $ 435 | $ 539 |
FFELP Student Loan ABS | ||
Investment securities | ||
Percent of principal balance and interest guaranteed by the U.S. Department of Education | 95.00% | 95.00% |
AFS securities | ||
AFS debt securities: Amortized cost | $ 2,217 | $ 3,387 |
AFS debt securities: Gross unrealized gains | 13 | 5 |
AFS debt securities: Gross unrealized losses | 8 | 61 |
AFS debt securities: Fair value | $ 2,222 | $ 3,331 |
Investment Securities (Investme
Investment Securities (Investment Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investment securities | ||
Investment securities: Fair Value, Less than 12 Months | $ 55,077 | $ 65,265 |
Investment securities: Fair Value, 12 Months or Longer | 4,709 | 1,223 |
Investment securities: Fair Value | 59,786 | 66,488 |
Investment securities: Gross Unrealized Loss, Less than 12 Months | 954 | 1,441 |
Investment securities: Gross Unrealized Loss, 12 Months or Longer | 111 | 7 |
Investment securities: Gross Unrealized Loss | 1,065 | 1,448 |
U.S. Government and Agency Securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 19,932 | 15,669 |
HTM: Fair Value, 12 Months or Longer | 0 | 0 |
HTM: Fair Value, Total | 19,932 | 15,669 |
HTM: Gross Unrealized Losses, Less than 12 Months | 400 | 471 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
HTM: Gross Unrealized Losses, Total | 400 | 471 |
Corporate and Other Debt | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 71 | |
HTM: Fair Value, 12 Months or Longer | 0 | |
HTM: Fair Value, Total | 71 | |
HTM: Gross Unrealized Losses, Less than 12 Months | 1 | |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | |
HTM: Gross Unrealized Losses, Total | 1 | |
CMBS: Non-Agency | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 71 | |
HTM: Fair Value, 12 Months or Longer | 0 | |
HTM: Fair Value, Total | 71 | |
HTM: Gross Unrealized Losses, Less than 12 Months | 1 | |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | |
HTM: Gross Unrealized Losses, Total | 1 | |
AFS Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 35,074 | 49,596 |
AFS: Fair Value, 12 Months or Longer | 4,709 | 1,223 |
AFS: Fair Value, Total | 39,783 | 50,819 |
AFS: Gross Unrealized Losses, Less than 12 Months | 553 | 970 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 111 | 7 |
AFS: Gross Unrealized Losses, Total | 664 | 977 |
AFS Debt Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 35,074 | 49,590 |
AFS: Fair Value, 12 Months or Longer | 4,705 | 1,223 |
AFS: Fair Value, Total | 39,779 | 50,813 |
AFS: Gross Unrealized Losses, Less than 12 Months | 553 | 961 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 100 | 7 |
AFS: Gross Unrealized Losses, Total | 653 | 968 |
AFS Debt Securities | U.S. Government and Agency Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 32,647 | 42,083 |
AFS: Fair Value, 12 Months or Longer | 3,802 | 125 |
AFS: Fair Value, Total | 36,449 | 42,208 |
AFS: Gross Unrealized Losses, Less than 12 Months | 500 | 823 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 89 | 0 |
AFS: Gross Unrealized Losses, Total | 589 | 823 |
AFS Debt Securities | U.S. Treasury Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 21,910 | 25,323 |
AFS: Fair Value, 12 Months or Longer | 2,371 | 0 |
AFS: Fair Value, Total | 24,281 | 25,323 |
AFS: Gross Unrealized Losses, Less than 12 Months | 364 | 545 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 61 | 0 |
AFS: Gross Unrealized Losses, Total | 425 | 545 |
AFS Debt Securities | U.S. Agency Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 10,737 | 16,760 |
AFS: Fair Value, 12 Months or Longer | 1,431 | 125 |
AFS: Fair Value, Total | 12,168 | 16,885 |
AFS: Gross Unrealized Losses, Less than 12 Months | 136 | 278 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 28 | 0 |
AFS: Gross Unrealized Losses, Total | 164 | 278 |
AFS Debt Securities | Corporate and Other Debt | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 2,427 | 7,507 |
AFS: Fair Value, 12 Months or Longer | 903 | 1,098 |
AFS: Fair Value, Total | 3,330 | 8,605 |
AFS: Gross Unrealized Losses, Less than 12 Months | 53 | 138 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 11 | 7 |
AFS: Gross Unrealized Losses, Total | 64 | 145 |
AFS Debt Securities | CMBS: Agency | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 991 | 1,245 |
AFS: Fair Value, 12 Months or Longer | 0 | 0 |
AFS: Fair Value, Total | 991 | 1,245 |
AFS: Gross Unrealized Losses, Less than 12 Months | 42 | 44 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
AFS: Gross Unrealized Losses, Total | 42 | 44 |
AFS Debt Securities | CMBS: Non-Agency | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 192 | 763 |
AFS: Fair Value, 12 Months or Longer | 571 | 594 |
AFS: Fair Value, Total | 763 | 1,357 |
AFS: Gross Unrealized Losses, Less than 12 Months | 2 | 11 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 5 | 5 |
AFS: Gross Unrealized Losses, Total | 7 | 16 |
AFS Debt Securities | Auto Loan ABS | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 659 | |
AFS: Fair Value, 12 Months or Longer | 123 | |
AFS: Fair Value, Total | 782 | |
AFS: Gross Unrealized Losses, Less than 12 Months | 1 | |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | |
AFS: Gross Unrealized Losses, Total | 1 | |
AFS Debt Securities | Corporate Bonds | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 186 | 2,050 |
AFS: Fair Value, 12 Months or Longer | 332 | 142 |
AFS: Fair Value, Total | 518 | 2,192 |
AFS: Gross Unrealized Losses, Less than 12 Months | 1 | 21 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 6 | 1 |
AFS: Gross Unrealized Losses, Total | 7 | 22 |
AFS Debt Securities | Collateralized Loan Obligations | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 178 | |
AFS: Fair Value, 12 Months or Longer | 239 | |
AFS: Fair Value, Total | 417 | |
AFS: Gross Unrealized Losses, Less than 12 Months | 0 | |
AFS: Gross Unrealized Losses, 12 Months or Longer | 1 | |
AFS: Gross Unrealized Losses, Total | 1 | |
AFS Debt Securities | FFELP Student Loan ABS | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 1,058 | 2,612 |
AFS: Fair Value, 12 Months or Longer | 0 | 0 |
AFS: Fair Value, Total | 1,058 | 2,612 |
AFS: Gross Unrealized Losses, Less than 12 Months | 8 | 61 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
AFS: Gross Unrealized Losses, Total | 8 | 61 |
AFS Equity Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 0 | 6 |
AFS: Fair Value, 12 Months or Longer | 4 | 0 |
AFS: Fair Value, Total | 4 | 6 |
AFS: Gross Unrealized Losses, Less than 12 Months | 0 | 9 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 11 | 0 |
AFS: Gross Unrealized Losses, Total | 11 | 9 |
HTM securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 20,003 | 15,669 |
HTM: Fair Value, 12 Months or Longer | 0 | 0 |
HTM: Fair Value, Total | 20,003 | 15,669 |
HTM: Gross Unrealized Losses, Less than 12 Months | 401 | 471 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
HTM: Gross Unrealized Losses, Total | 401 | 471 |
HTM securities | U.S. Treasury Securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 9,848 | 5,057 |
HTM: Fair Value, 12 Months or Longer | 0 | 0 |
HTM: Fair Value, Total | 9,848 | 5,057 |
HTM: Gross Unrealized Losses, Less than 12 Months | 249 | 283 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
HTM: Gross Unrealized Losses, Total | 249 | 283 |
HTM securities | U.S. Agency Securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 10,084 | 10,612 |
HTM: Fair Value, 12 Months or Longer | 0 | 0 |
HTM: Fair Value, Total | 10,084 | 10,612 |
HTM: Gross Unrealized Losses, Less than 12 Months | 151 | 188 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
HTM: Gross Unrealized Losses, Total | $ 151 | $ 188 |
Investment Securities (Invest64
Investment Securities (Investment Securities by Contractual Maturity) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Amortized Cost | ||
AFS debt securities: Amortized cost, total | $ 55,528 | $ 64,091 |
AFS equity securities: Amortized cost | 15 | 15 |
AFS Securities: Amortized cost, total | 55,543 | 64,106 |
HTM securities: Amortized cost, total | 24,132 | 16,922 |
Investment securities: Amortized cost, total | 79,675 | 81,028 |
Fair Value | ||
AFS debt securities: Fair value, total | 54,950 | 63,164 |
AFS equity securities: Fair value | 4 | 6 |
AFS securities: Fair value, total | 54,954 | 63,170 |
HTM securities: Fair value, total | 23,757 | 16,453 |
Investment securities: Fair value, total | $ 78,711 | 79,623 |
Average Yield | ||
AFS debt securities: Annualized average yield, total | 1.50% | |
AFS equity securities: Annualized average yield | 0.00% | |
AFS securities: Annualized average yield, total | 1.50% | |
HTM securities: Annualized average yield, total | 2.10% | |
Investment securities: Annualized average yield, total | 1.70% | |
U.S. Government and Agency Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, total | $ 48,724 | 50,719 |
HTM securities: Amortized cost, total | 23,885 | |
Fair Value | ||
AFS debt securities: Fair value, total | 48,177 | 49,911 |
HTM securities: Fair value, total | $ 23,510 | |
Average Yield | ||
AFS debt securities: Annualized average yield, total | 1.50% | |
HTM securities: Annualized average yield, total | 2.00% | |
U.S. Treasury Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 5,300 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 14,129 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 5,277 | |
AFS debt securities: Amortized cost, total | 24,706 | 28,371 |
HTM securities: Amortized cost, due within 1 year | 300 | |
HTM securities: Amortized cost, after 1 year through 5 years | 5,163 | |
HTM securities: Amortized cost, after 5 year through 10 years | 5,311 | |
HTM securities: Amortized cost, after 10 years | 727 | |
HTM securities: Amortized cost, total | 11,501 | 5,839 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 5,286 | |
AFS debt securities: Fair value, after 1 year through 5 years | 13,954 | |
AFS debt securities: Fair value, after 5 years through 10 years | 5,041 | |
AFS debt securities: Fair value, total | 24,281 | 27,827 |
HTM securities: Fair value, due within 1 year | 300 | |
HTM securities: Fair value, after 1 year through 5 years | 5,151 | |
HTM securities: Fair value, after 5 years through 10 years | 5,157 | |
HTM securities: Fair value, after 10 years | 651 | |
HTM securities: Fair value, total | $ 11,259 | 5,557 |
Average Yield | ||
AFS debt securities: Annualized average yield, due within 1 year | 0.90% | |
AFS debt securities: Annualized average yield, after 1 year through 5 years | 1.40% | |
AFS debt securities: Annualized average yield, after 5 years through 10 years | 1.50% | |
HTM securities: Annualized average yield, due within 1 year | 0.60% | |
HTM securities: Annualized average yield, after 1 years through 5 years | 1.50% | |
HTM securities: Annualized average yield, after 5 years through 10 years | 1.90% | |
HTM securities: Annualized average yield, after 10 year | 2.30% | |
U.S. Agency Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 1,300 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 2,570 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 1,250 | |
AFS debt securities: Amortized cost, after 10 years | 18,898 | |
AFS debt securities: Amortized cost, total | 24,018 | 22,348 |
HTM securities: Amortized cost, after 10 years | 12,384 | |
HTM securities: Amortized cost, total | 12,384 | 11,083 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 1,302 | |
AFS debt securities: Fair value, after 1 year through 5 years | 2,564 | |
AFS debt securities: Fair value, after 5 years through 10 years | 1,246 | |
AFS debt securities: Fair value, after 10 years | 18,784 | |
AFS debt securities: Fair value, total | 23,896 | 22,084 |
HTM securities: Fair value, after 10 years | 12,251 | |
HTM securities: Fair value, total | $ 12,251 | 10,896 |
Average Yield | ||
AFS debt securities: Annualized average yield, due within 1 year | 0.20% | |
AFS debt securities: Annualized average yield, after 1 year through 5 years | 0.90% | |
AFS debt securities: Annualized average yield, after 5 years through 10 years | 1.90% | |
AFS debt securities: Annualized average yield, after 10 years | 1.80% | |
HTM securities: Annualized average yield, after 10 year | 2.40% | |
Corporate and Other Debt | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, total | $ 6,804 | 13,372 |
HTM securities: Amortized cost, total | 247 | |
Fair Value | ||
AFS debt securities: Fair value, total | 6,773 | 13,253 |
HTM securities: Fair value, total | $ 247 | |
Average Yield | ||
AFS debt securities: Annualized average yield, total | 1.60% | |
HTM securities: Annualized average yield, total | 3.70% | |
CMBS: Agency | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 18 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 283 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 300 | |
AFS debt securities: Amortized cost, after 10 years | 851 | |
AFS debt securities: Amortized cost, total | 1,452 | 1,850 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 18 | |
AFS debt securities: Fair value, after 1 year through 5 years | 282 | |
AFS debt securities: Fair value, after 5 years through 10 years | 301 | |
AFS debt securities: Fair value, after 10 years | 811 | |
AFS debt securities: Fair value, total | $ 1,412 | 1,808 |
Average Yield | ||
AFS debt securities: Annualized average yield, due within 1 year | 1.10% | |
AFS debt securities: Annualized average yield, after 1 year through 5 years | 1.40% | |
AFS debt securities: Annualized average yield, after 5 years through 10 years | 1.20% | |
AFS debt securities: Annualized average yield, after 10 years | 1.60% | |
CMBS: Non-Agency | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, after 5 years through 10 years | $ 36 | |
AFS debt securities: Amortized cost, after 10 years | 1,179 | |
AFS debt securities: Amortized cost, total | 1,215 | 2,250 |
HTM securities: Amortized cost, after 1 year through 5 years | 99 | |
HTM securities: Amortized cost, after 5 year through 10 years | 148 | |
HTM securities: Amortized cost, total | 247 | |
Fair Value | ||
AFS debt securities: Fair value, after 5 years through 10 years | 35 | |
AFS debt securities: Fair value, after 10 years | 1,177 | |
AFS debt securities: Fair value, total | 1,212 | 2,245 |
HTM securities: Fair value, after 1 year through 5 years | 99 | |
HTM securities: Fair value, after 5 years through 10 years | 148 | |
HTM securities: Fair value, total | $ 247 | |
Average Yield | ||
AFS debt securities: Annualized average yield, after 5 years through 10 years | 2.50% | |
AFS debt securities: Annualized average yield, after 10 years | 1.80% | |
HTM securities: Annualized average yield, after 1 years through 5 years | 3.60% | |
HTM securities: Annualized average yield, after 5 years through 10 years | 3.70% | |
Auto Loan ABS | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, total | 1,509 | |
Fair Value | ||
AFS debt securities: Fair value, total | 1,509 | |
Corporate Bonds | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 46 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 1,218 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 222 | |
AFS debt securities: Amortized cost, total | 1,486 | 3,836 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 46 | |
AFS debt securities: Fair value, after 1 year through 5 years | 1,225 | |
AFS debt securities: Fair value, after 5 years through 10 years | 221 | |
AFS debt securities: Fair value, total | $ 1,492 | 3,821 |
Average Yield | ||
AFS debt securities: Annualized average yield, due within 1 year | 1.20% | |
AFS debt securities: Annualized average yield, after 1 year through 5 years | 2.40% | |
AFS debt securities: Annualized average yield, after 5 years through 10 years | 2.30% | |
CLO | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, after 5 years through 10 years | $ 236 | |
AFS debt securities: Amortized cost, after 10 years | 198 | |
AFS debt securities: Amortized cost, total | 434 | 540 |
Fair Value | ||
AFS debt securities: Fair value, after 5 years through 10 years | 236 | |
AFS debt securities: Fair value, after 10 years | 199 | |
AFS debt securities: Fair value, total | $ 435 | 539 |
Average Yield | ||
AFS debt securities: Annualized average yield, after 5 years through 10 years | 1.50% | |
AFS debt securities: Annualized average yield, after 10 years | 2.40% | |
FFELP Student Loan ABS | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, after 1 year through 5 years | $ 52 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 393 | |
AFS debt securities: Amortized cost, after 10 years | 1,772 | |
AFS debt securities: Amortized cost, total | 2,217 | 3,387 |
Fair Value | ||
AFS debt securities: Fair value, after 1 year through 5 years | 51 | |
AFS debt securities: Fair value, after 5 years through 10 years | 390 | |
AFS debt securities: Fair value, after 10 years | 1,781 | |
AFS debt securities: Fair value, total | $ 2,222 | $ 3,331 |
Average Yield | ||
AFS debt securities: Annualized average yield, after 1 year through 5 years | 0.80% | |
AFS debt securities: Annualized average yield, after 5 years through 10 years | 0.80% | |
AFS debt securities: Annualized average yield, after 10 years | 1.10% |
Investment Securities (Gross Re
Investment Securities (Gross Realized Gains and Losses on Sales of AFS Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Available-for-sale Securities [Abstract] | ||||
Gross realized gains | $ 11 | $ 45 | $ 38 | $ 130 |
Gross realized (losses) | 0 | 0 | (11) | (3) |
Total | $ 11 | $ 45 | $ 27 | $ 127 |
Collateralized Transactions (Of
Collateralized Transactions (Offsetting of Certain Collateralized Transactions) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Securities Purchased under Agreements to Resell | ||
Gross amount | $ 174,387 | $ 182,888 |
Amounts offset | (84,281) | (80,933) |
Net amount presented | 90,106 | 101,955 |
Amounts not offset | (84,895) | (93,365) |
Net amounts | 5,211 | 8,590 |
Securities Borrowed | ||
Gross amount | 145,923 | 129,934 |
Amounts offset | (13,031) | (4,698) |
Net amount presented | 132,892 | 125,236 |
Amounts not offset | (128,616) | (118,974) |
Net amounts | 4,276 | 6,262 |
Securities Sold under Agreements to Repurchase | ||
Gross amount | 138,264 | 135,561 |
Amounts offset | (84,281) | (80,933) |
Net amount presented | 53,983 | 54,628 |
Amounts not offset | (46,145) | (47,933) |
Net amounts | 7,838 | 6,695 |
Securities Loaned | ||
Gross amount | 28,662 | 20,542 |
Amounts offset | (13,032) | (4,698) |
Net amount presented | 15,630 | 15,844 |
Amounts not offset | (15,550) | (15,670) |
Net amounts | 80 | 174 |
Not Subject to Legally Enforceable Master Netting Agreements | ||
Securities purchased under agreements to resell | 4,599 | 7,765 |
Securities borrowed | 720 | 2,591 |
Securities sold under agreements to repurchase | 6,521 | 6,500 |
Securities loaned | $ 7 | $ 154 |
Collateralized Transactions (Gr
Collateralized Transactions (Gross Secured Financing Balances) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | $ 138,264 | $ 135,561 |
Securities loaned | 28,662 | 20,542 |
Total included in the offsetting disclosure | 166,926 | 156,103 |
Trading liabilities - Obligation to return securities received as collateral | 21,208 | 20,262 |
Total | 188,134 | 176,365 |
U.S. Government and Agency Securities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 40,758 | 56,372 |
State and Municipal Securities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 828 | 1,363 |
Other Sovereign Government Obligations | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 64,529 | 42,790 |
Securities loaned | 13,259 | 4,762 |
Asset-backed Securities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 2,267 | 1,918 |
Corporate and Other Debt | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 8,244 | 9,086 |
Securities loaned | 9 | 73 |
Corporate Equities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 20,773 | 23,152 |
Securities loaned | 15,152 | 15,693 |
Other | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 865 | 880 |
Securities loaned | 242 | 14 |
Overnight and Open | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 38,581 | 41,549 |
Securities loaned | 17,274 | 9,487 |
Total included in the offsetting disclosure | 55,855 | 51,036 |
Trading liabilities - Obligation to return securities received as collateral | 21,208 | 20,262 |
Total | 77,063 | 71,298 |
Less than 30 days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 38,455 | 36,703 |
Securities loaned | 541 | 851 |
Total included in the offsetting disclosure | 38,996 | 37,554 |
Trading liabilities - Obligation to return securities received as collateral | 0 | 0 |
Total | 38,996 | 37,554 |
30-90 days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 18,398 | 24,648 |
Securities loaned | 1,426 | 2,863 |
Total included in the offsetting disclosure | 19,824 | 27,511 |
Trading liabilities - Obligation to return securities received as collateral | 0 | 0 |
Total | 19,824 | 27,511 |
Over 90 days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 42,830 | 32,661 |
Securities loaned | 9,421 | 7,341 |
Total included in the offsetting disclosure | 52,251 | 40,002 |
Trading liabilities - Obligation to return securities received as collateral | 0 | 0 |
Total | $ 52,251 | $ 40,002 |
Collateralized Transactions (As
Collateralized Transactions (Assets Pledged) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Collateralized Transactions | ||
Trading assets | $ 37,800 | $ 41,358 |
Loans (gross of allowance for loan losses) | 570 | 0 |
Total | $ 38,370 | $ 41,358 |
Collateralized Transactions (Co
Collateralized Transactions (Collateral Received) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Collateralized Transactions | ||
Collateral with rights to sell or repledge | $ 575,915 | $ 561,239 |
Collateral that was sold or repledged | $ 470,555 | $ 430,911 |
Collateralized Transactions (Cu
Collateralized Transactions (Customer Margin Lending and Other) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Collateralized Transactions | ||
Net customer receivables representing margin loans | $ 28,609 | $ 24,359 |
Collateralized Transactions (Ca
Collateralized Transactions (Cash and Securities Deposited with Clearing Organizations or Segregated) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Collateralized Transactions | ||
Segregated securities | $ 17,491 | $ 23,756 |
Other assets - Cash deposited with clearing organizations or segregated under federal and other regulations or requirements | 32,731 | 33,979 |
Total | $ 50,222 | $ 57,735 |
Loans and Allowance for Credi72
Loans and Allowance for Credit Losses (Loans Held for Investment and Held for Sale) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Loans Held for Investment | ||||
Loans held for investment, gross | $ 91,452 | $ 81,978 | ||
Allowance for loan losses | (245) | (274) | $ (287) | $ (225) |
Loans held for investment, net | 91,207 | 81,704 | ||
Loans Held for Sale | ||||
Loans held for sale, gross | 13,224 | 12,544 | ||
Allowance for loan losses | 0 | 0 | ||
Loans held for sale, net | 13,224 | 12,544 | ||
Total Loans | ||||
Total loans, gross | 104,676 | 94,522 | ||
Allowance for loan losses | (245) | (274) | ||
Total loans, net | 104,431 | 94,248 | ||
Loans at fixed interest rates | 13,323 | 11,895 | ||
Loans at floating or adjustable interest rates | 91,108 | 82,353 | ||
Non-U.S. | ||||
Total Loans | ||||
Total loans, net | 8,883 | 9,388 | ||
Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 89,875 | 79,901 | ||
Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 688 | 519 | ||
Substandard | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 882 | 1,489 | ||
Doubtful | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 7 | 69 | ||
Loss | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Corporate | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 29,686 | 25,025 | ||
Allowance for loan losses | (149) | (195) | (219) | (166) |
Loans Held for Sale | ||||
Loans held for sale, gross | 12,524 | 10,710 | ||
Total Loans | ||||
Total loans, gross | 42,210 | 35,735 | ||
Corporate | Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 28,735 | 23,409 | ||
Corporate | Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 435 | 288 | ||
Corporate | Substandard | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 509 | 1,259 | ||
Corporate | Doubtful | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 7 | 69 | ||
Corporate | Loss | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Consumer | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 26,616 | 24,866 | ||
Allowance for loan losses | (4) | (4) | (3) | (5) |
Loans Held for Sale | ||||
Loans held for sale, gross | 0 | 0 | ||
Total Loans | ||||
Total loans, gross | 26,616 | 24,866 | ||
Consumer | Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 26,613 | 24,853 | ||
Consumer | Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 3 | 13 | ||
Consumer | Substandard | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Consumer | Doubtful | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Consumer | Loss | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Residential Real Estate | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 26,150 | 24,385 | ||
Allowance for loan losses | (24) | (20) | (20) | (17) |
Loans Held for Sale | ||||
Loans held for sale, gross | 60 | 61 | ||
Total Loans | ||||
Total loans, gross | 26,210 | 24,446 | ||
Residential Real Estate | Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 26,092 | 24,345 | ||
Residential Real Estate | Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Residential Real Estate | Substandard | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 58 | 40 | ||
Residential Real Estate | Doubtful | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Residential Real Estate | Loss | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Wholesale Real Estate | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 9,000 | 7,702 | ||
Allowance for loan losses | (68) | (55) | $ (45) | $ (37) |
Loans Held for Sale | ||||
Loans held for sale, gross | 640 | 1,773 | ||
Total Loans | ||||
Total loans, gross | 9,640 | 9,475 | ||
Wholesale Real Estate | Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 8,435 | 7,294 | ||
Wholesale Real Estate | Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 250 | 218 | ||
Wholesale Real Estate | Substandard | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 315 | 190 | ||
Wholesale Real Estate | Doubtful | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Wholesale Real Estate | Loss | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | $ 0 | $ 0 |
Loans and Allowance for Credi73
Loans and Allowance for Credit Losses (Impaired Loans) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Impaired Loans | ||
Loans: With allowance | $ 15 | $ 104 |
Loans: Without allowance | 192 | 241 |
Loans: Unpaid principal balance | 217 | 354 |
Lending Commitments: With allowance | 1 | 0 |
Lending Commitments: Without allowance | 221 | 89 |
Impaired loans | 207 | 345 |
Allowance for loan losses | 245 | 274 |
Americas | ||
Impaired Loans | ||
Impaired loans | 188 | 320 |
Allowance for loan losses | 209 | 245 |
EMEA | ||
Impaired Loans | ||
Impaired loans | 9 | 9 |
Allowance for loan losses | 33 | 28 |
Asia-Pacific | ||
Impaired Loans | ||
Impaired loans | 10 | 16 |
Allowance for loan losses | 3 | 1 |
Corporate | ||
Impaired Loans | ||
Loans: With allowance | 15 | 104 |
Loans: Without allowance | 146 | 206 |
Loans: Unpaid principal balance | 170 | 316 |
Lending Commitments: With allowance | 1 | 0 |
Lending Commitments: Without allowance | 221 | 89 |
Residential Real Estate | ||
Impaired Loans | ||
Loans: With allowance | 0 | 0 |
Loans: Without allowance | 46 | 35 |
Loans: Unpaid principal balance | 47 | 38 |
Lending Commitments: With allowance | 0 | 0 |
Lending Commitments: Without allowance | $ 0 | $ 0 |
Loans and Allowance for Credi74
Loans and Allowance for Credit Losses (TDR) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Troubled Debt Restructurings | ||
Loans | $ 69 | $ 67 |
Lending commitments | 11 | 14 |
Allowance for loan losses | $ 10 | $ 0 |
Loans and Allowance for Credi75
Loans and Allowance for Credit Losses (Allowance for Loan Losses and Lending Commitments Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Allowance for loan losses rollforward | ||||
Beginning balance | $ 274 | $ 225 | ||
Gross charge-offs | (75) | (15) | ||
Recoveries | 1 | 0 | ||
Net recoveries (charge-offs) | (74) | (15) | ||
Provision for (release of) loan losses | $ 13 | $ 1 | 42 | 129 |
Other | 3 | (52) | ||
Ending balance | 245 | 287 | 245 | 287 |
Inherent | 238 | 210 | 238 | 210 |
Specific | 7 | 77 | 7 | 77 |
Allowance for lending commitments rollforward | ||||
Beginning balance | 190 | 185 | ||
Provision for (release of) lending commitments | (6) | 6 | (10) | 9 |
Other | 1 | (7) | ||
Ending balance | 181 | 187 | 181 | 187 |
Inherent | 178 | 185 | 178 | 185 |
Specific | 3 | 2 | 3 | 2 |
Corporate | ||||
Allowance for loan losses rollforward | ||||
Beginning balance | 195 | 166 | ||
Gross charge-offs | (75) | (15) | ||
Recoveries | 1 | 0 | ||
Net recoveries (charge-offs) | (74) | (15) | ||
Provision for (release of) loan losses | 26 | 120 | ||
Other | 2 | (52) | ||
Ending balance | 149 | 219 | 149 | 219 |
Inherent | 142 | 142 | 142 | 142 |
Specific | 7 | 77 | 7 | 77 |
Allowance for lending commitments rollforward | ||||
Beginning balance | 185 | 180 | ||
Provision for (release of) lending commitments | (10) | 9 | ||
Other | 1 | (7) | ||
Ending balance | 176 | 182 | 176 | 182 |
Inherent | 173 | 180 | 173 | 180 |
Specific | 3 | 2 | 3 | 2 |
Consumer | ||||
Allowance for loan losses rollforward | ||||
Beginning balance | 4 | 5 | ||
Gross charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net recoveries (charge-offs) | 0 | 0 | ||
Provision for (release of) loan losses | 0 | (2) | ||
Other | 0 | 0 | ||
Ending balance | 4 | 3 | 4 | 3 |
Inherent | 4 | 3 | 4 | 3 |
Specific | 0 | 0 | 0 | 0 |
Allowance for lending commitments rollforward | ||||
Beginning balance | 1 | 1 | ||
Provision for (release of) lending commitments | 0 | 0 | ||
Other | 0 | 0 | ||
Ending balance | 1 | 1 | 1 | 1 |
Inherent | 1 | 1 | 1 | 1 |
Specific | 0 | 0 | 0 | 0 |
Residential Real Estate | ||||
Allowance for loan losses rollforward | ||||
Beginning balance | 20 | 17 | ||
Gross charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net recoveries (charge-offs) | 0 | 0 | ||
Provision for (release of) loan losses | 4 | 3 | ||
Other | 0 | 0 | ||
Ending balance | 24 | 20 | 24 | 20 |
Inherent | 24 | 20 | 24 | 20 |
Specific | 0 | 0 | 0 | 0 |
Allowance for lending commitments rollforward | ||||
Beginning balance | 0 | 0 | ||
Provision for (release of) lending commitments | 0 | 0 | ||
Other | 0 | 0 | ||
Ending balance | 0 | 0 | 0 | 0 |
Inherent | 0 | 0 | 0 | 0 |
Specific | 0 | 0 | 0 | 0 |
Wholesale Real Estate | ||||
Allowance for loan losses rollforward | ||||
Beginning balance | 55 | 37 | ||
Gross charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net recoveries (charge-offs) | 0 | 0 | ||
Provision for (release of) loan losses | 12 | 8 | ||
Other | 1 | 0 | ||
Ending balance | 68 | 45 | 68 | 45 |
Inherent | 68 | 45 | 68 | 45 |
Specific | 0 | 0 | 0 | 0 |
Allowance for lending commitments rollforward | ||||
Beginning balance | 4 | 4 | ||
Provision for (release of) lending commitments | 0 | 0 | ||
Other | 0 | 0 | ||
Ending balance | 4 | 4 | 4 | 4 |
Inherent | 4 | 4 | 4 | 4 |
Specific | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Credi76
Loans and Allowance for Credit Losses (Employee Loans) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Employee Loans | ||
Balance | $ 4,317 | $ 4,804 |
Allowance for loan losses | (79) | (89) |
Balance, net | $ 4,238 | $ 4,715 |
Minimum | ||
Employee Loans | ||
Employee loan repayment terms | 1 year | 1 year |
Maximum | ||
Employee Loans | ||
Employee loan repayment terms | 20 years | 12 years |
Equity Method Investments (Equi
Equity Method Investments (Equity Method Investment Balances) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures | |||||
Equity method investments | $ 2,766 | $ 2,766 | $ 2,837 | ||
Income (loss) from equity method investments | $ 0 | $ (40) | $ 0 | $ (39) |
Equity Method Investments (Inve
Equity Method Investments (Investees) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity Method Investments | ||||
Income (loss) from equity method investments | $ 0 | $ (40) | $ 0 | $ (39) |
MUMSS | ||||
Equity Method Investments | ||||
Voting interest | 40.00% | 40.00% | ||
Income (loss) from equity method investments | $ 25 | $ 26 | $ 96 | $ 83 |
MUFG | MUMSS | ||||
Equity Method Investments | ||||
Voting interest | 60.00% | 60.00% |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Savings and demand deposits | $ 140,707 | $ 154,559 |
Time deposits | 13,932 | 1,304 |
Total | 154,639 | 155,863 |
Deposits subject to FDIC insurance | 121,896 | 127,992 |
Time deposits that equal or exceed the FDIC insurance limit | 10 | $ 46 |
Interest Bearing Time Deposit Maturities | ||
2,017 | 3,447 | |
2,018 | 9,456 | |
2,019 | 861 | |
2,020 | 0 | |
2,021 | 8 | |
Thereafter | $ 160 |
Long-Term Borrowings and Othe80
Long-Term Borrowings and Other Secured Financings (Long-Term Borrowings) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Long-term Borrowings by Type | ||
Senior | $ 181,336 | $ 154,472 |
Subordinated debt | 10,341 | 10,303 |
Total | $ 191,677 | $ 164,775 |
Weighted average stated maturity, in years | 6 years 8 months | 5 years 11 months |
Long-Term Borrowings and Othe81
Long-Term Borrowings and Other Secured Financings (Other Secured Financings) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Long-term Borrowings | ||
Secured financings with original maturities greater than one year | $ 11,037 | $ 9,404 |
Secured financings with original maturities one year or less | 2,349 | 1,429 |
Failed sales | 858 | 285 |
Total other secured financings | $ 14,244 | $ 11,118 |
Commitments, Guarantees and C82
Commitments, Guarantees and Contingencies (Commitments) (Details) $ in Millions | Sep. 30, 2017USD ($) |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | $ 88,523 |
1-3 (years) | 30,695 |
3-5 (years) | 44,911 |
Over 5 (years) | 4,933 |
Total | 169,062 |
Corporate Lending | |
Commitment, Fiscal Year Maturity | |
Commitments participated to third parties | 6,335 |
Forward-starting Secured Financing Receivables | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 68,538 |
1-3 (years) | 0 |
3-5 (years) | 0 |
Over 5 (years) | 0 |
Total | 68,538 |
Commitments settled within three business days | 60,013 |
Underwriting | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 0 |
1-3 (years) | 0 |
3-5 (years) | 0 |
Over 5 (years) | 0 |
Total | 0 |
Investment Activities | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 504 |
1-3 (years) | 180 |
3-5 (years) | 55 |
Over 5 (years) | 259 |
Total | 998 |
Letters of Credit and Other Financial Guarantees | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 157 |
1-3 (years) | 1 |
3-5 (years) | 1 |
Over 5 (years) | 44 |
Total | 203 |
Lending Commitments | Corporate Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 13,001 |
1-3 (years) | 30,194 |
3-5 (years) | 44,669 |
Over 5 (years) | 4,122 |
Total | 91,986 |
Lending Commitments | Consumer Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 6,182 |
1-3 (years) | 0 |
3-5 (years) | 2 |
Over 5 (years) | 3 |
Total | 6,187 |
Lending Commitments | Residential Real Estate Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 17 |
1-3 (years) | 39 |
3-5 (years) | 70 |
Over 5 (years) | 273 |
Total | 399 |
Lending Commitments | Wholesale Real Estate Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 124 |
1-3 (years) | 281 |
3-5 (years) | 114 |
Over 5 (years) | 232 |
Total | $ 751 |
Commitments, Guarantees and C83
Commitments, Guarantees and Contingencies (Obligations under Guarantee Arrangements) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Jun. 30, 2017 |
Credit Derivatives | ||
Guarantees | ||
Maximum potential payout/notional | $ 340,358 | |
Carrying amount: (asset) | (2,004) | |
Collateral/recourse | 0 | |
Credit Derivatives | Less than 1 (Year) | ||
Guarantees | ||
Maximum potential payout/notional | 118,646 | |
Credit Derivatives | 1 - 3 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 85,300 | |
Credit Derivatives | 3 - 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 82,668 | |
Credit Derivatives | Over 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 53,744 | |
Other Credit Contracts | ||
Guarantees | ||
Maximum potential payout/notional | 149 | |
Carrying amount: liability | 13 | |
Collateral/recourse | 0 | |
Other Credit Contracts | Less than 1 (Year) | ||
Guarantees | ||
Maximum potential payout/notional | 14 | |
Other Credit Contracts | 1 - 3 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 0 | |
Other Credit Contracts | 3 - 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 0 | |
Other Credit Contracts | Over 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 135 | |
Non-credit Derivatives | ||
Guarantees | ||
Maximum potential payout/notional | 3,570,924 | |
Carrying amount: liability | 38,611 | |
Collateral/recourse | 0 | |
Non-credit Derivatives | Less than 1 (Year) | ||
Guarantees | ||
Maximum potential payout/notional | 1,592,809 | |
Non-credit Derivatives | 1 - 3 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 1,029,404 | |
Non-credit Derivatives | 3 - 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 374,956 | |
Non-credit Derivatives | Over 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 573,755 | |
Standby Letters of Credit and Other Financial Guarantees Issued | ||
Guarantees | ||
Maximum potential payout/notional | 8,053 | |
Carrying amount: (asset) | (186) | |
Collateral/recourse | 6,593 | |
Standby letters of credit | $ 700 | |
Standby Letters of Credit and Other Financial Guarantees Issued | Less than 1 (Year) | ||
Guarantees | ||
Maximum potential payout/notional | 782 | |
Standby Letters of Credit and Other Financial Guarantees Issued | 1 - 3 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 909 | |
Standby Letters of Credit and Other Financial Guarantees Issued | 3 - 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 1,406 | |
Standby Letters of Credit and Other Financial Guarantees Issued | Over 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 4,956 | |
Market Value Guarantees | ||
Guarantees | ||
Maximum potential payout/notional | 171 | |
Carrying amount: liability | 1 | |
Collateral/recourse | 4 | |
Market Value Guarantees | Less than 1 (Year) | ||
Guarantees | ||
Maximum potential payout/notional | 40 | |
Market Value Guarantees | 1 - 3 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 62 | |
Market Value Guarantees | 3 - 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 69 | |
Market Value Guarantees | Over 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 0 | |
Liquidity Facilities | ||
Guarantees | ||
Maximum potential payout/notional | 3,237 | |
Carrying amount: (asset) | (5) | |
Collateral/recourse | 5,342 | |
Liquidity Facilities | Less than 1 (Year) | ||
Guarantees | ||
Maximum potential payout/notional | 3,237 | |
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 | 23,261 | |
Carrying amount: liability | 8 | |
Collateral/recourse | 0 | |
Whole Loan Sales Guarantees | Less than 1 (Year) | ||
Guarantees | ||
Maximum potential payout/notional | 0 | |
Whole Loan Sales Guarantees | 1 - 3 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 0 | |
Whole Loan Sales Guarantees | 3 - 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 1 | |
Whole Loan Sales Guarantees | Over 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 23,260 | |
Securitizations Representations and Warranties | ||
Guarantees | ||
Maximum potential payout/notional | 58,423 | |
Carrying amount: liability | 91 | |
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 | 58,423 | |
General Partner Guarantees | ||
Guarantees | ||
Maximum potential payout/notional | 440 | |
Carrying amount: liability | 53 | |
Collateral/recourse | 0 | |
General Partner Guarantees | Less than 1 (Year) | ||
Guarantees | ||
Maximum potential payout/notional | 34 | |
General Partner Guarantees | 1 - 3 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 49 | |
General Partner Guarantees | 3 - 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | 332 | |
General Partner Guarantees | Over 5 (Years) | ||
Guarantees | ||
Maximum potential payout/notional | $ 25 |
Commitments, Guarantees and C84
Commitments, Guarantees and Contingencies (Contingencies) (Details) - 9 months ended Sep. 30, 2017 - Pending Litigation € in Millions, $ in Millions | EUR (€) | USD ($) |
China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. | ||
Loss Contingencies | ||
Lawsuit filing date | Jul. 15, 2010 | |
Name of plaintiff | China Development Industrial Bank (“CDIB”) | |
Name of defendant | the Firm | |
Domicile of litigation | Supreme Court of NY | |
Allegations | The complaint relates to a $275 million credit default swap referencing the super senior portion of the STACK 2006-1 CDO. The complaint asserts claims for common law fraud, fraudulent inducement and fraudulent concealment and alleges that the Firm misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that the Firm knew that the assets backing the CDO were of poor quality when it entered into the credit default swap with CDIB. | |
Damages sought | The complaint seeks compensatory damages related to the approximately $228 million that CDIB alleges it has already lost under the credit default swap, rescission of CDIB’s obligation to pay an additional $12 million, punitive damages, equitable relief, fees and costs. | |
China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | $ 240 | |
Morgan Stanley Mortgage Loan Trust 2006-14SL, et al. v. Morgan Stanley Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc. | ||
Loss Contingencies | ||
Lawsuit filing date | Aug. 8, 2012 | |
Name of plaintiff | U.S. Bank | |
Name of defendant | the Firm | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trusts, which had original principal balances of approximately $354 million and $305 million respectively, breached various representations and warranties. | |
Damages sought | The complaint seeks, among other relief, rescission of the mortgage loan purchase agreements underlying the transactions, specific performance and unspecified damages and interest. | |
Morgan Stanley Mortgage Loan Trust 2006-14SL, et al. v. Morgan Stanley Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc. | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | 527 | |
Deutsche Zentral-Genossenschaftsbank AG et al. v. Morgan Stanley et al. | ||
Loss Contingencies | ||
Lawsuit filing date | May 3, 2013 | |
Name of defendant | the Firm | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | The complaint alleges that defendants made material misrepresentations and omissions in the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Firm to plaintiff was approximately $644 million. The complaint alleges causes of action against the Firm for common law fraud, fraudulent concealment, aiding and abetting fraud, negligent misrepresentation, and rescission | |
Damages sought | seeks, among other things, compensatory and punitive damages | |
Request for information | At September 25, 2017, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $232 million, and the certificates had incurred actual losses of approximately $87 million. | |
US Bank National Association, solely in its capacity as Trustee of the Morgan Stanley Mortgage Loan Trust 2007-2AX (MSM 2007-2AX) v. Morgan Stanley Mortgage Capital Holdings LLC, as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc. and GreenPoint Mortgage Funding, Inc. | ||
Loss Contingencies | ||
Lawsuit filing date | Jul. 8, 2013 | |
Name of plaintiff | U.S. Bank National Association | |
Name of defendant | the Firm | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original principal balance of approximately $650 million, breached various representations and warranties. | |
Damages sought | The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, unspecified damages and interest. | |
US Bank National Association, solely in its capacity as Trustee of the Morgan Stanley Mortgage Loan Trust 2007-2AX (MSM 2007-2AX) v. Morgan Stanley Mortgage Capital Holdings LLC, as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc. and GreenPoint Mortgage Funding, Inc. | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | 240 | |
Wilmington Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC et al. | ||
Loss Contingencies | ||
Lawsuit filing date | Dec. 30, 2013 | |
Name of plaintiff | Wilmington Trust Company | |
Name of defendant | the Firm | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original principal balance of approximately $516 million, breached various representations and warranties. | |
Damages sought | The complaint seeks, among other relief, unspecified damages, attorneys’ fees, interest and costs. | |
Wilmington Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC et al. | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | 152 | |
Deutsche Bank National Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC | ||
Loss Contingencies | ||
Lawsuit filing date | Apr. 28, 2014 | |
Name of plaintiff | Deutsche Bank National Trust Company | |
Name of defendant | the Firm | |
Domicile of litigation | the United States District Court for the Southern District of New York | |
Allegations | The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original principal balance of approximately $735 million, breached various representations and warranties. | |
Damages sought | The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, unspecified compensatory and/or rescissory damages, interest and costs. | |
Deutsche Bank National Trust Company v. Morgan Stanley Mortgage Capital Holdings LLC | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | 292 | |
Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. (NIMS 2007-1) | ||
Loss Contingencies | ||
Lawsuit filing date | Sep. 19, 2014 | |
Name of plaintiff | Financial Guaranty Insurance Company (“FGIC”) | |
Name of defendant | the Firm | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | The complaint asserts claims for breach of contract and alleges, among other things, that the net interest margin securities (“NIMS”) in the trust breached various representations and warranties. FGIC issued a financial guaranty policy with respect to certain notes that had an original balance of approximately $475 million. | |
Damages sought | The complaint seeks, among other relief, specific performance of the NIMS breach remedy procedures in the transaction documents, unspecified damages, reimbursement of certain payments made pursuant to the transaction documents, attorneys’ fees and interest. | |
Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. (NIMS 2007-1) | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | 126 | |
Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. (Trust 2007-NC4) | ||
Loss Contingencies | ||
Lawsuit filing date | Sep. 23, 2014 | |
Name of plaintiff | FGIC | |
Name of defendant | the Firm | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | The complaint asserts claims for breach of contract and fraudulent inducement and alleges, among other things, that the loans in the trust breached various representations and warranties and defendants made untrue statements and material omissions to induce FGIC to issue a financial guaranty policy on certain classes of certificates that had an original balance of approximately $876 million. | |
Damages sought | The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, compensatory, consequential and punitive damages, attorneys’ fees and interest. | |
Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. (Trust 2007-NC4) | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | 277 | |
Deutsche Bank National Trust Company solely in its capacity as Trustee of the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 v. Morgan Stanley Mortgage Capital Holdings LLC as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc., and Morgan Stanley ABS Capital I Inc. | ||
Loss Contingencies | ||
Lawsuit filing date | Jan. 23, 2015 | |
Name of plaintiff | Deutsche Bank National Trust Company | |
Name of defendant | the Firm | |
Domicile of litigation | the Supreme Court of NY | |
Allegations | The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original principal balance of approximately $1.05 billion, breached various representations and warranties. | |
Damages sought | The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, compensatory, consequential, rescissory, equitable and punitive damages, attorneys’ fees, costs and other related expenses, and interest. | |
Deutsche Bank National Trust Company solely in its capacity as Trustee of the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 v. Morgan Stanley Mortgage Capital Holdings LLC as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc., and Morgan Stanley ABS Capital I Inc. | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | $ 277 | |
Case Number 15/3637 and Case Number 15/4353 | ||
Loss Contingencies | ||
Name of plaintiff | the Dutch Tax Authority (“Dutch Authority”) | |
Name of defendant | the Firm | |
Domicile of litigation | the District Court in Amsterdam | |
Allegations | the prior set-off by the Firm of approximately €124 million (plus accrued interest) of withholding tax credits against the Firm’s corporation tax liabilities for the tax years 2007 to 2013. The Dutch Authority alleges that the Firm was not entitled to receive the withholding tax credits on the basis, inter alia, that a Firm subsidiary did not hold legal title to certain securities subject to withholding tax on the relevant dates. The Dutch Authority has also alleged that the Firm failed to provide certain information to the Dutch Authority and keep adequate books and records. | |
Case Number 15/3637 and Case Number 15/4353 | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | € | € 124 |
Variable Interest Entities an85
Variable Interest Entities and Securitization Activities (Consolidated VIEs) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity | ||
VIE assets | $ 1,744 | $ 2,410 |
VIE liabilities | 332 | 318 |
Credit-linked Notes | ||
Variable Interest Entity | ||
VIE assets | 100 | 501 |
VIE liabilities | 0 | 0 |
Other Structured Financings | ||
Variable Interest Entity | ||
VIE assets | 398 | 602 |
VIE liabilities | 3 | 10 |
MABS | ||
Variable Interest Entity | ||
VIE assets | 90 | 397 |
VIE liabilities | 69 | 283 |
Other | ||
Variable Interest Entity | ||
VIE assets | 1,156 | 910 |
VIE liabilities | $ 260 | $ 25 |
Variable Interest Entities an86
Variable Interest Entities and Securitization Activities (Assets and Liabilities by Balance Sheet Caption) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Assets | |||
Cash and due from banks | $ 24,047 | $ 22,017 | $ 26,899 |
Trading assets at fair value | 285,088 | 262,154 | |
Customer and other receivables | 54,388 | 46,460 | |
Goodwill | 6,590 | 6,577 | |
Intangible assets | 2,491 | 2,721 | |
Other assets | 50,430 | 52,125 | |
Assets | 853,693 | 814,949 | |
Liabilities | |||
Other secured financings at fair value | 6,514 | 5,041 | |
Other liabilities and accrued expenses | 16,290 | 15,896 | |
Liabilities | 773,579 | 737,772 | |
Noncontrolling interests | 1,136 | 1,127 | |
Consolidated VIEs | |||
Assets | |||
Cash and due from banks | 82 | 74 | |
Trading assets at fair value | 741 | 1,295 | |
Customer and other receivables | 15 | 13 | |
Goodwill | 18 | 18 | |
Intangible assets | 160 | 177 | |
Other assets | 728 | 833 | |
Assets | 1,744 | 2,410 | |
Liabilities | |||
Other secured financings at fair value | 297 | 289 | |
Other liabilities and accrued expenses | 35 | 29 | |
Liabilities | 332 | 318 | |
Noncontrolling interests | 197 | 228 | |
Maximum exposure to losses | $ 0 | $ 78 |
Variable Interest Entities an87
Variable Interest Entities and Securitization Activities (Non-Consolidated VIEs) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity | ||
Additional VIE assets issued by securitization SPEs | $ 11,900 | $ 11,700 |
MABS | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 78,134 | 101,916 |
Maximum exposure to loss | 9,758 | 11,927 |
Residential Mortgage | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 13,043 | 4,775 |
Commercial Mortgage | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 43,920 | 54,021 |
U.S. Agency Collateralized Mortgage Obligations | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 12,015 | 14,796 |
Other Consumer or Commercial Loans | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 9,156 | 28,324 |
CDO | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 7,153 | 11,341 |
Maximum exposure to loss | 2,169 | 1,344 |
MTOB | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 5,149 | 4,857 |
Maximum exposure to loss | 3,281 | 2,862 |
OSF | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 3,709 | 4,293 |
Maximum exposure to loss | 1,720 | 1,757 |
Other | ||
Variable Interest Entity | ||
VIE assets (unpaid principal balance) | 33,041 | 39,077 |
Maximum exposure to loss | 6,185 | 5,150 |
Assets | MABS | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 8,908 | 11,243 |
Assets | CDO | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 1,162 | 1,245 |
Assets | MTOB | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 50 | 54 |
Assets | OSF | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 1,145 | 1,183 |
Assets | Other | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 5,689 | 4,895 |
Debt and Equity Interests | MABS | ||
Variable Interest Entity | ||
Maximum exposure to loss | 8,908 | 11,243 |
Carrying value of exposure to loss | 8,908 | 11,243 |
Debt and Equity Interests | Residential Mortgage | ||
Variable Interest Entity | ||
Maximum exposure to loss | 910 | 458 |
Debt and Equity Interests | Commercial Mortgage | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,964 | 2,656 |
Debt and Equity Interests | U.S. Agency Collateralized Mortgage Obligations | ||
Variable Interest Entity | ||
Maximum exposure to loss | 2,723 | 2,758 |
Debt and Equity Interests | Other Consumer or Commercial Loans | ||
Variable Interest Entity | ||
Maximum exposure to loss | 3,311 | 5,371 |
Debt and Equity Interests | CDO | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,162 | 1,245 |
Carrying value of exposure to loss | 1,162 | 1,245 |
Debt and Equity Interests | MTOB | ||
Variable Interest Entity | ||
Maximum exposure to loss | 44 | 50 |
Carrying value of exposure to loss | 44 | 49 |
Debt and Equity Interests | OSF | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,551 | 1,570 |
Carrying value of exposure to loss | 1,145 | 1,183 |
Debt and Equity Interests | Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 5,684 | 4,877 |
Carrying value of exposure to loss | 5,684 | 4,877 |
Net Derivative and Other Contracts | MABS | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of exposure to loss | 0 | 0 |
Net Derivative and Other Contracts | CDO | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Carrying value of exposure to loss | 0 | 0 |
Net Derivative and Other Contracts | MTOB | ||
Variable Interest Entity | ||
Maximum exposure to loss | 3,237 | 2,812 |
Carrying value of exposure to loss | 6 | 5 |
Net Derivative and Other Contracts | OSF | ||
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 | 50 | 45 |
Carrying value of exposure to loss | 5 | 18 |
Commitments, Guarantees and Other | MABS | ||
Variable Interest Entity | ||
Maximum exposure to loss | 850 | 684 |
Commitments, Guarantees and Other | CDO | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,007 | 99 |
Commitments, Guarantees and Other | MTOB | ||
Variable Interest Entity | ||
Maximum exposure to loss | 0 | 0 |
Commitments, Guarantees and Other | OSF | ||
Variable Interest Entity | ||
Maximum exposure to loss | 169 | 187 |
Commitments, Guarantees and Other | Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | $ 451 | $ 228 |
Variable Interest Entities an88
Variable Interest Entities and Securitization Activities (Transfers of Assets with Continuing Involvement 1) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity | ||
Derivative assets (fair value) | $ 31,375 | $ 31,206 |
Derivative liabilities (fair value) | 24,439 | 29,315 |
Special Purpose Entities | ||
Variable Interest Entity | ||
Retained interests | 1,471 | 1,306 |
Interests purchased in the secondary market (fair value) | 213 | 154 |
Derivative assets (fair value) | 239 | 350 |
Derivative liabilities (fair value) | 72 | 459 |
Special Purpose Entities | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 692 | 397 |
Interests purchased in the secondary market (fair value) | 94 | 56 |
Special Purpose Entities | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 779 | 909 |
Interests purchased in the secondary market (fair value) | 119 | 98 |
Special Purpose Entities | Residential Mortgage Loans | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 16,173 | 19,381 |
Retained interests | 2 | 4 |
Interests purchased in the secondary market (fair value) | 38 | 23 |
Derivative assets (fair value) | 0 | 0 |
Derivative liabilities (fair value) | 0 | 0 |
Special Purpose Entities | Residential Mortgage Loans | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 0 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Residential Mortgage Loans | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 2 | 4 |
Interests purchased in the secondary market (fair value) | 38 | 23 |
Special Purpose Entities | Commercial Mortgage Loans | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 55,682 | 43,104 |
Retained interests | 372 | 101 |
Interests purchased in the secondary market (fair value) | 149 | 105 |
Derivative assets (fair value) | 0 | 261 |
Derivative liabilities (fair value) | 0 | 0 |
Special Purpose Entities | Commercial Mortgage Loans | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 233 | 22 |
Interests purchased in the secondary market (fair value) | 68 | 30 |
Special Purpose Entities | Commercial Mortgage Loans | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 139 | 79 |
Interests purchased in the secondary market (fair value) | 81 | 75 |
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 11,363 | 11,092 |
Retained interests | 682 | 375 |
Interests purchased in the secondary market (fair value) | 26 | 26 |
Derivative assets (fair value) | 0 | 0 |
Derivative liabilities (fair value) | 0 | 0 |
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 682 | 375 |
Interests purchased in the secondary market (fair value) | 26 | 26 |
Special Purpose Entities | U.S. Agency Collateralized Mortgage Obligations | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 0 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Credit-Linked Notes and Other | ||
Variable Interest Entity | ||
SPE assets (unpaid principal balance) | 11,602 | 11,613 |
Retained interests | 643 | 826 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Derivative assets (fair value) | 239 | 89 |
Derivative liabilities (fair value) | 72 | 459 |
Special Purpose Entities | Credit-Linked Notes and Other | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 5 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
Special Purpose Entities | Credit-Linked Notes and Other | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 638 | 826 |
Interests purchased in the secondary market (fair value) | $ 0 | $ 0 |
Variable Interest Entities an89
Variable Interest Entities and Securitization Activities (Transfers of Assets with Continuing Involvement 2) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity | ||
Derivative assets (fair value) | $ 31,375 | $ 31,206 |
Derivative liabilities (fair value) | 24,439 | 29,315 |
Special Purpose Entities | ||
Variable Interest Entity | ||
Retained interests (fair value) | 1,471 | 1,306 |
Interests purchased in the secondary market (fair value) | 213 | 154 |
Derivative assets (fair value) | 239 | 350 |
Derivative liabilities (fair value) | 72 | 459 |
Special Purpose Entities | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 692 | 397 |
Interests purchased in the secondary market (fair value) | 94 | 56 |
Special Purpose Entities | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 779 | 909 |
Interests purchased in the secondary market (fair value) | 119 | 98 |
Special Purpose Entities | Level 2 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 735 | 399 |
Interests purchased in the secondary market (fair value) | 199 | 140 |
Derivative assets (fair value) | 77 | 348 |
Derivative liabilities (fair value) | 67 | 98 |
Special Purpose Entities | Level 2 | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 687 | 385 |
Interests purchased in the secondary market (fair value) | 93 | 56 |
Special Purpose Entities | Level 2 | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 48 | 14 |
Interests purchased in the secondary market (fair value) | 106 | 84 |
Special Purpose Entities | Level 3 | ||
Variable Interest Entity | ||
Retained interests (fair value) | 736 | 907 |
Interests purchased in the secondary market (fair value) | 14 | 14 |
Derivative assets (fair value) | 162 | 2 |
Derivative liabilities (fair value) | 5 | 361 |
Special Purpose Entities | Level 3 | Investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 5 | 12 |
Interests purchased in the secondary market (fair value) | 1 | 0 |
Special Purpose Entities | Level 3 | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests (fair value) | 731 | 895 |
Interests purchased in the secondary market (fair value) | $ 13 | $ 14 |
Variable Interest Entities an90
Variable Interest Entities and Securitization Activities (Proceeds from retained interests in securitization transactions) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
OTC | Equity Derivatives | |||||
Transfer of Financial Assets Accounted for as Sales | |||||
Carrying value of assets derecognized at the time of sale and gross cash proceeds | $ 14,458 | $ 14,458 | $ 11,209 | ||
Fair value of assets sold | 14,618 | 14,618 | 11,301 | ||
Fair value of derivative assets recognized in the balance sheets | 177 | 177 | 128 | ||
Fair value of derivative liabilities recognized in the balance sheets | 17 | 17 | $ 36 | ||
Special Purpose Entities | |||||
Transfer of Financial Assets Accounted for as Sales | |||||
Proceeds from new securitization transactions | 6,875 | $ 6,819 | 17,622 | $ 13,695 | |
Proceeds from retained interests in securitization transactions | 648 | 768 | 1,607 | 1,901 | |
CLO SPEs | Corporate Loans | |||||
Transfer of Financial Assets Accounted for as Sales | |||||
Proceeds from sale of loans | $ 56 | $ 199 | $ 148 | $ 230 |
Variable Interest Entities an91
Variable Interest Entities and Securitization Activities (Failed Sales) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Failed Sales | ||
Assets, carrying value | $ 858 | $ 285 |
Liabilities, carrying value | $ 858 | $ 285 |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Regulatory Requirements | |
Description of regulatory requirements on capital adequacy | In addition to the minimum risk-based capital ratio requirements, on a fully phased-in basis by 2019, the Firm will be subject to: A greater than 2.5% Common Equity Tier 1 capital conservation buffer; The Common Equity Tier 1 global systemically important bank capital surcharge, currently at 3%; and Up to a 2.5% Common Equity Tier 1 countercyclical capital buffer, currently set by U.S. banking regulators at zero (collectively, the “buffers”). In 2017, the phase-in amount for each of the buffers is 50% of the fully phased-in buffer requirement. |
Description of possible effects of noncompliance | Failure to maintain the buffers will result in restrictions on the Firm’s ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. |
Regulatory Requirements (Capita
Regulatory Requirements (Capital Measures) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Advanced Approach Transitional Rules | ||
Balance | ||
Common Equity Tier 1 capital | $ 60,398 | |
Tier 1 capital | 68,097 | |
Total capital | 78,642 | |
Assets | ||
Total RWAs | $ 358,141 | |
Ratio | ||
Common Equity Tier 1 capital | 16.90% | |
Tier 1 capital | 19.00% | |
Total capital | 22.00% | |
Minimum Capital Ratio | ||
Common Equity Tier 1 capital | 5.90% | |
Tier 1 capital | 7.40% | |
Total capital | 9.40% | |
Standardized Approach Transitional Rules | ||
Balance | ||
Common Equity Tier 1 capital | $ 62,214 | |
Tier 1 capital | 71,006 | |
Total capital | 81,861 | |
Assets | ||
Total RWAs | 368,629 | |
Adjusted average assets | $ 841,360 | $ 811,402 |
Ratio | ||
Common Equity Tier 1 capital | 16.90% | |
Tier 1 capital | 19.30% | |
Total capital | 22.20% | |
Tier 1 leverage | 8.40% | 8.40% |
Minimum Capital Ratio | ||
Common Equity Tier 1 capital | 7.30% | |
Tier 1 capital | 8.80% | |
Total capital | 10.80% | |
Tier 1 leverage | 4.00% | 4.00% |
Regulatory Requirements (U.S. B
Regulatory Requirements (U.S. Bank Subsidiaries' Regulatory Capital and Capital Ratios) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Advanced Approach Transitional Rules | ||
Regulatory Requirements | ||
Common Equity Tier 1 capital | $ 60,398 | |
Tier 1 capital | 68,097 | |
Total capital | $ 78,642 | |
Ratio | ||
Common Equity Tier 1 capital | 16.90% | |
Tier 1 capital | 19.00% | |
Total capital | 22.00% | |
Standardized Approach Transitional Rules | ||
Regulatory Requirements | ||
Common Equity Tier 1 capital | $ 62,214 | |
Tier 1 capital | 71,006 | |
Total capital | $ 81,861 | |
Ratio | ||
Common Equity Tier 1 capital | 16.90% | |
Tier 1 capital | 19.30% | |
Total capital | 22.20% | |
Tier 1 leverage | 8.40% | 8.40% |
MSBNA | Standardized Approach Transitional Rules | ||
Regulatory Requirements | ||
Common Equity Tier 1 capital | $ 14,839 | $ 13,398 |
Tier 1 capital | 14,839 | 13,398 |
Total capital | 15,110 | 14,858 |
Tier 1 leverage | $ 14,839 | $ 13,398 |
Ratio | ||
Common Equity Tier 1 capital | 19.30% | 16.90% |
Tier 1 capital | 19.30% | 16.90% |
Total capital | 19.70% | 18.70% |
Tier 1 leverage | 11.80% | 10.50% |
Minimum Capital Ratio | ||
Common Equity Tier 1 capital | 6.50% | 6.50% |
Tier 1 capital ratio | 8.00% | 8.00% |
Total capital ratio | 10.00% | 10.00% |
Tier 1 leverage ratio | 5.00% | 5.00% |
MSPBNA | Standardized Approach Transitional Rules | ||
Regulatory Requirements | ||
Common Equity Tier 1 capital | $ 6,082 | $ 5,589 |
Tier 1 capital | 6,082 | 5,589 |
Total capital | 6,124 | 5,626 |
Tier 1 leverage | $ 6,082 | $ 5,589 |
Ratio | ||
Common Equity Tier 1 capital | 24.60% | 26.10% |
Tier 1 capital | 24.60% | 26.10% |
Total capital | 24.80% | 26.30% |
Tier 1 leverage | 9.80% | 10.60% |
Minimum Capital Ratio | ||
Common Equity Tier 1 capital | 6.50% | 6.50% |
Tier 1 capital ratio | 8.00% | 8.00% |
Total capital ratio | 10.00% | 10.00% |
Tier 1 leverage ratio | 5.00% | 5.00% |
Regulatory Requirements (Broker
Regulatory Requirements (Broker-Dealer Regulatory Capital Requirements) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
MS&Co. | ||
Regulatory Requirements | ||
Net capital | $ 10,613 | $ 10,311 |
Excess net capital | 8,558 | 8,034 |
MSSB LLC | ||
Regulatory Requirements | ||
Net capital | 2,573 | 3,946 |
Excess net capital | $ 2,415 | $ 3,797 |
Total Equity (Dividends and Sha
Total Equity (Dividends and Share Repurchase) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share Repurchase Program | ||||
Outstanding common stock repurchased | $ 1,250 | $ 1,250 | $ 2,500 | $ 2,500 |
Capital Plans | ||||
Dividends declared per common share | $ 0.25 | $ 0.2 | $ 0.65 | $ 0.5 |
2016 Capital Plan | ||||
Capital Plans | ||||
Authorized repurchase amount of outstanding common stock | $ 3,500 | $ 3,500 | ||
Dividends declared per common share | $ 0.2 | |||
2017 Capital Plan | ||||
Capital Plans | ||||
Authorized repurchase amount of outstanding common stock | $ 5,000 | $ 5,000 | ||
Stock repurchase program start date | Jul. 1, 2017 | |||
Stock repurchase program expiration date | Jun. 30, 2018 | |||
Start date of current common stock dividend per share declared | Jul. 19, 2017 | |||
Dividend declared date | Oct. 17, 2017 | |||
Dividends declared per common share | $ 0.25 | |||
Dividend payable date | Nov. 15, 2017 | |||
Date of shareholders on record | Oct. 31, 2017 |
Total Equity (Preferred Stock G
Total Equity (Preferred Stock General Disclosure) (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Preferred Stock | |||||
Issuance of preferred stock, net of issuance costs | $ 994 | $ 0 | |||
Preferred Stock | |||||
Preferred Stock | |||||
Preferred stock dividends declared | $ 93 | $ 78 | $ 353 | $ 312 | |
Dividend declared date | Sep. 15, 2017 | ||||
Date of shareholders on record | Sep. 29, 2017 | ||||
Dividend payable date | Oct. 16, 2017 | ||||
Preferred stock shares authorized | 30 | 30 | |||
Series K Preferred Stock | |||||
Preferred Stock | |||||
Issuance of preferred stock, net of issuance costs | $ 994 |
Total Equity (Preferred Stock O
Total Equity (Preferred Stock Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Class of Stock | ||
Preferred stock carrying value | $ 8,520 | $ 7,520 |
Series A Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 44,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,100 | 1,100 |
Series C Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 519,882 | |
Liquidation preference per share | $ 1,000 | |
Preferred stock carrying value | $ 408 | 408 |
Series C Preferred Stock | MUFG | ||
Class of Stock | ||
Preferred stock shares issued | 1,160,791 | |
Preferred stock aggregate purchase price | $ 911 | |
Preferred stock redemption, shares | 640,909 | |
Preferred stock redemption amount | $ 503 | |
Preferred stock converted to common shares | $ 705 | |
Series E Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 34,500 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 862 | 862 |
Series F Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 34,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 850 | 850 |
Series G Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 20,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 500 | 500 |
Series H Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 52,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,300 | 1,300 |
Series I Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 40,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,000 | 1,000 |
Series J Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 60,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,500 | 1,500 |
Series K Preferred Stock | ||
Class of Stock | ||
Preferred stock shares outstanding | 40,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,000 | $ 0 |
Total Equity (Accumulated Other
Total Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Cumulative adjustment for accounting change related to DVA | [1] | $ 0 | |||
Accumulated Other Comprehensive Income (Loss) | |||||
Beginning balance | $ (2,488) | $ (905) | $ (2,643) | (1,656) | |
Cumulative adjustment for accounting change related to DVA | [1] | (312) | |||
OCI during the period | (56) | (165) | 99 | 898 | |
Ending balance | (2,544) | (1,070) | (2,544) | (1,070) | |
Foreign Currency Translation Adjustments | |||||
Beginning balance | (856) | (779) | (986) | (963) | |
Cumulative adjustment for accounting change related to DVA | 0 | ||||
OCI during the period | 61 | 25 | 191 | 209 | |
Ending balance | (795) | (754) | (795) | (754) | |
AFS Securities | |||||
Beginning balance | (396) | 219 | (588) | (319) | |
Cumulative adjustment for accounting change related to DVA | 0 | ||||
OCI during the period | 26 | (99) | 218 | 439 | |
Ending balance | (370) | 120 | (370) | 120 | |
Pension, Postretirement and Other | |||||
Beginning balance | (470) | (378) | (474) | (374) | |
Cumulative adjustment for accounting change related to DVA | 0 | ||||
OCI during the period | 0 | (1) | 4 | (5) | |
Ending balance | (470) | (379) | (470) | (379) | |
DVA | |||||
Beginning balance | (766) | 33 | (595) | 0 | |
Cumulative adjustment for accounting change related to DVA | (312) | ||||
OCI during the period | (143) | (90) | (314) | 255 | |
Ending balance | $ (909) | $ (57) | $ (909) | $ (57) | |
[1] | Debt valuation adjustment (“DVA”) represent s the change in the fair value resulting from fluctuations in the Firm’s credit spreads and other credit factors relate d to liabilities carried at fair value under the fair value option , primarily related to certain Long-term and Short-term borrowings. In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Ass ets and Financial Liabilities , a cumulative catch - up adjustment was recorded as of January 1, 2016 to move the cumulative unrealized DVA amount, net of noncontrolling interest s and tax, related to outstanding liabilities under the fair value option electio n from Retained earnings into Accumulated other comprehensive i ncome (loss) (“AOCI”). See Note 2 to the consolidated financial statements in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”) and Note 14 for further information. |
Total Equity (Period Changes in
Total Equity (Period Changes in OCI Components) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pre-tax Gain (Loss): Foreign Currency Translation Adjustments | ||||
OCI activity | $ 19 | $ 13 | $ 63 | $ 156 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | 19 | 13 | 63 | 156 |
Pre-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | 52 | (112) | 374 | 822 |
Reclassified to earnings | (11) | (45) | (27) | (127) |
Net OCI | 41 | (157) | 347 | 695 |
Pre-tax Gain (Loss): Pension, Postretirement and Other | ||||
OCI activity | 0 | 0 | 3 | (6) |
Reclassified to earnings | 1 | (1) | 2 | (3) |
Net OCI | 1 | (1) | 5 | (9) |
Pre-tax Gain (Loss): Change in Net DVA | ||||
OCI activity | (220) | (149) | (498) | 440 |
Reclassified to earnings | (9) | 6 | (1) | (35) |
Net OCI | (229) | (143) | (499) | 405 |
Income Tax Benefit (Provision): Foreign Currency Translation Adjustments | ||||
OCI activity | 42 | 30 | 160 | 204 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | 42 | 30 | 160 | 204 |
Income Tax Benefit (Provision): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | (19) | 41 | (139) | (303) |
Reclassified to earnings | 4 | 17 | 10 | 47 |
Net OCI | (15) | 58 | (129) | (256) |
Income Tax Benefit (Provision): Pension, Postretirement and Other | ||||
OCI activity | 0 | 0 | 0 | 3 |
Reclassified to earnings | (1) | 0 | (1) | 1 |
Net OCI | (1) | 0 | (1) | 4 |
Income Tax Benefit (Provision): Change in Net DVA | ||||
OCI activity | 77 | 52 | 175 | (163) |
Reclassified to earnings | 3 | (2) | 1 | 13 |
Net OCI | 80 | 50 | 176 | (150) |
After-tax Gain (Loss): Foreign Currency Translation Adjustments | ||||
OCI activity | 61 | 43 | 223 | 360 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | 61 | 43 | 223 | 360 |
After-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | 33 | (71) | 235 | 519 |
Reclassified to earnings | (7) | (28) | (17) | (80) |
Net OCI | 26 | (99) | 218 | 439 |
After-tax Gain (Loss): Pension, Postretirement and Other | ||||
OCI activity | 0 | 0 | 3 | (3) |
Reclassified to earnings | 0 | (1) | 1 | (2) |
Net OCI | 0 | (1) | 4 | (5) |
After-tax Gain (Loss): Change in Net DVA | ||||
OCI activity | (143) | (97) | (323) | 277 |
Reclassified to earnings | (6) | 4 | 0 | (22) |
Net OCI | (149) | (93) | (323) | 255 |
Non-controlling Interests | ||||
After-tax Gain (Loss): Foreign Currency Translation Adjustments | ||||
OCI activity | 0 | 18 | 32 | 151 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | 0 | 18 | 32 | 151 |
After-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | 0 | 0 | 0 | 0 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | 0 | 0 | 0 | 0 |
After-tax Gain (Loss): Pension, Postretirement and Other | ||||
OCI activity | 0 | 0 | 0 | 0 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | 0 | 0 | 0 | 0 |
After-tax Gain (Loss): Change in Net DVA | ||||
OCI activity | (6) | (3) | (9) | 0 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | (6) | (3) | (9) | 0 |
Net | ||||
After-tax Gain (Loss): Foreign Currency Translation Adjustments | ||||
OCI activity | 61 | 25 | 191 | 209 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | 61 | 25 | 191 | 209 |
After-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | 33 | (71) | 235 | 519 |
Reclassified to earnings | (7) | (28) | (17) | (80) |
Net OCI | 26 | (99) | 218 | 439 |
After-tax Gain (Loss): Pension, Postretirement and Other | ||||
OCI activity | 0 | 0 | 3 | (3) |
Reclassified to earnings | 0 | (1) | 1 | (2) |
Net OCI | 0 | (1) | 4 | (5) |
After-tax Gain (Loss): Change in Net DVA | ||||
OCI activity | (137) | (94) | (314) | 277 |
Reclassified to earnings | (6) | 4 | 0 | (22) |
Net OCI | $ (143) | $ (90) | $ (314) | $ 255 |
Total Equity (Noncontrolling In
Total Equity (Noncontrolling Interests) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Total Equity | ||
Noncontrolling interests | $ 1,136 | $ 1,127 |
Earnings per Common Share (Calc
Earnings per Common Share (Calculation of Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic EPS | ||||
Income from continuing operations | $ 1,785 | $ 1,632 | $ 5,574 | $ 4,442 |
Income (loss) from discontinued operations | 6 | 8 | (21) | 1 |
Net income | 1,791 | 1,640 | 5,553 | 4,443 |
Net income applicable to noncontrolling interests | 10 | 43 | 85 | 130 |
Net income applicable to Morgan Stanley | 1,781 | 1,597 | 5,468 | 4,313 |
Less: Preferred stock dividends and other | (93) | (79) | (353) | (314) |
Earnings applicable to Morgan Stanley common shareholders | $ 1,688 | $ 1,518 | $ 5,115 | $ 3,999 |
Weighted average common shares outstanding | 1,776 | 1,838 | 1,789 | 1,863 |
Earnings per basic common share | ||||
Income from continuing operations | $ 0.95 | $ 0.82 | $ 2.87 | $ 2.15 |
Income (loss) from discontinued operations | 0 | 0.01 | (0.01) | 0 |
Earnings per basic common share | $ 0.95 | $ 0.83 | $ 2.86 | $ 2.15 |
Diluted EPS | ||||
Earnings applicable to Morgan Stanley common shareholders | $ 1,688 | $ 1,518 | $ 5,115 | $ 3,999 |
Weighted average common shares outstanding | 1,776 | 1,838 | 1,789 | 1,863 |
Effect of dilutive securities: | ||||
Stock options and RSUs | 42 | 41 | 41 | 35 |
Weighted average common shares outstanding and common stock equivalents | 1,818 | 1,879 | 1,830 | 1,898 |
Earnings per diluted common share | ||||
Income from continuing operations | $ 0.93 | $ 0.8 | $ 2.81 | $ 2.11 |
Income (loss) from discontinued operations | 0 | 0.01 | (0.02) | 0 |
Earnings per diluted common share | $ 0.93 | $ 0.81 | $ 2.79 | $ 2.11 |
Weighted average antidilutive RSUs and stock options (excluded from the computation of diluted EPS) | 0 | 14 | 0 | 15 |
Interest Income and Interest103
Interest Income and Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest income | ||||
Investment securities | $ 313 | $ 289 | $ 943 | $ 762 |
Loans | 853 | 698 | 2,399 | 2,026 |
Interest bearing deposits with banks | 84 | 30 | 206 | 134 |
Securities purchased under agreements to resell and Securities borrowed | 76 | (118) | 86 | (315) |
Trading assets, net of Trading liabilities | 506 | 526 | 1,461 | 1,651 |
Customer receivables and Other | 508 | 309 | 1,316 | 890 |
Total Interest income | 2,340 | 1,734 | 6,411 | 5,148 |
Interest expense | ||||
Deposits | 63 | 12 | 88 | 48 |
Short-term and Long-term borrowings | 1,109 | 814 | 3,197 | 2,633 |
Securities sold under agreements to repurchase and Securities loaned | 325 | 228 | 912 | 761 |
Customer payables and Other | 60 | (323) | (91) | (1,109) |
Total Interest expense | 1,557 | 731 | 4,106 | 2,333 |
Net interest | $ 783 | $ 1,003 | $ 2,305 | $ 2,815 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Expense (Income)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Components of Net Periodic Benefit Expense (Income) | ||||
Service cost, benefits earned during the period | $ 4 | $ 6 | $ 12 | $ 14 |
Interest cost on projected benefit obligation | 37 | 38 | 112 | 115 |
Expected return on plan assets | (29) | (31) | (87) | (91) |
Net amortization of prior service credit | (4) | (4) | (12) | (13) |
Net amortization of actuarial loss | 4 | 3 | 12 | 9 |
Net periodic benefit expense (income) | $ 12 | $ 12 | $ 37 | $ 34 |
Segment and Geographic Infor105
Segment and Geographic Information (Selected Financial Information by Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information | ||||
Total non-interest revenues | $ 8,414 | $ 7,906 | $ 26,140 | $ 22,795 |
Interest income | 2,340 | 1,734 | 6,411 | 5,148 |
Interest expense | 1,557 | 731 | 4,106 | 2,333 |
Net interest | 783 | 1,003 | 2,305 | 2,815 |
Net revenues | 9,197 | 8,909 | 28,445 | 25,610 |
Income from continuing operations before income taxes | 2,482 | 2,381 | 7,932 | 6,602 |
Provision for income taxes | 697 | 749 | 2,358 | 2,160 |
Income from continuing operations | 1,785 | 1,632 | 5,574 | 4,442 |
Income (loss) from discontinued operations, net of income taxes | 6 | 8 | (21) | 1 |
Net income | 1,791 | 1,640 | 5,553 | 4,443 |
Net income (loss) applicable to noncontrolling interests | 10 | 43 | 85 | 130 |
Net income applicable to Morgan Stanley | 1,781 | 1,597 | 5,468 | 4,313 |
Segment Reporting Information, Additional Information | ||||
Fee waivers | $ 20 | $ 26 | 66 | $ 61 |
Institutional Securities | ||||
Segment Reporting Information, Additional Information | ||||
Provision for potential additional value-added tax, interest and penalties | $ 86 |
Segment and Geographic Infor106
Segment and Geographic Information (Performance-based Fees at Risk) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Segment Reporting [Abstract] | ||
Net unrealized cumulative performance-based fees at risk of reversing | $ 450 | $ 397 |
Segment and Geographic Infor107
Segment and Geographic Information (Assets by Business Segment) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information | ||
Assets | $ 853,693 | $ 814,949 |
Institutional Securities | ||
Segment Reporting Information | ||
Assets | 668,281 | 629,149 |
Wealth Management | ||
Segment Reporting Information | ||
Assets | 180,628 | 181,135 |
Investment Management | ||
Segment Reporting Information | ||
Assets | $ 4,784 | $ 4,665 |
Segment and Geographic Infor108
Segment and Geographic Information (Net Revenues and Total Assets by Region) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information | ||||
Net revenues | $ 9,197 | $ 8,909 | $ 28,445 | $ 25,610 |
Americas | ||||
Segment Reporting Information | ||||
Net revenues | 6,833 | 6,624 | 20,667 | 18,914 |
EMEA | ||||
Segment Reporting Information | ||||
Net revenues | 1,325 | 1,236 | 4,420 | 3,677 |
Asia-Pacific | ||||
Segment Reporting Information | ||||
Net revenues | $ 1,039 | $ 1,049 | $ 3,358 | $ 3,019 |