Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,720,154,771 |
Consolidated Income Statements
Consolidated Income Statements (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | ||||
Investment banking | $ 1,567 | $ 1,380 | $ 4,994 | $ 4,455 |
Trading | 2,752 | 2,704 | 9,815 | 8,870 |
Investments | 136 | 167 | 409 | 495 |
Commissions and fees | 932 | 937 | 3,144 | 2,997 |
Asset management | 3,251 | 3,026 | 9,632 | 8,695 |
Other | 298 | 200 | 748 | 628 |
Total non-interest revenues | 8,936 | 8,414 | 28,742 | 26,140 |
Interest income | 3,627 | 2,340 | 9,781 | 6,411 |
Interest expense | 2,691 | 1,557 | 6,964 | 4,106 |
Net interest | 936 | 783 | 2,817 | 2,305 |
Net revenues | 9,872 | 9,197 | 31,559 | 28,445 |
Non-interest expenses | ||||
Compensation and benefits | 4,310 | 4,169 | 13,845 | 12,887 |
Occupancy and equipment | 351 | 330 | 1,033 | 990 |
Brokerage, clearing and exchange fees | 559 | 522 | 1,795 | 1,556 |
Information processing and communications | 513 | 459 | 1,487 | 1,320 |
Marketing and business development | 152 | 128 | 471 | 419 |
Professional services | 570 | 534 | 1,660 | 1,622 |
Other | 566 | 573 | 1,888 | 1,719 |
Total non-interest expenses | 7,021 | 6,715 | 22,179 | 20,513 |
Income from continuing operations before income taxes | 2,851 | 2,482 | 9,380 | 7,932 |
Provision for income taxes | 696 | 697 | 2,050 | 2,358 |
Income from continuing operations | 2,155 | 1,785 | 7,330 | 5,574 |
Income (loss) from discontinued operations, net of income taxes | (1) | 6 | (5) | (21) |
Net income | 2,154 | 1,791 | 7,325 | 5,553 |
Net income applicable to noncontrolling interests | 42 | 10 | 108 | 85 |
Net income applicable to Morgan Stanley | 2,112 | 1,781 | 7,217 | 5,468 |
Preferred stock dividends and other | 93 | 93 | 356 | 353 |
Earnings applicable to Morgan Stanley common shareholders | $ 2,019 | $ 1,688 | $ 6,861 | $ 5,115 |
Earnings per basic common share | ||||
Income from continuing operations | $ 1.19 | $ 0.95 | $ 3.99 | $ 2.87 |
Income (loss) from discontinued operations | 0 | 0 | 0 | (0.01) |
Earnings per basic common share | 1.19 | 0.95 | 3.99 | 2.86 |
Earnings per diluted common share | ||||
Income from continuing operations | 1.17 | 0.93 | 3.92 | 2.81 |
Income (loss) from discontinued operations | 0 | 0 | 0 | (0.02) |
Earnings per diluted common share | 1.17 | 0.93 | 3.92 | 2.79 |
Dividends declared per common share | $ 0.3 | $ 0.25 | $ 0.8 | $ 0.65 |
Average common shares outstanding | ||||
Basic | 1,697 | 1,776 | 1,719 | 1,789 |
Diluted | 1,727 | 1,818 | 1,749 | 1,830 |
Consolidated Comprehensive Inco
Consolidated Comprehensive Income Statements (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Comprehensive Income Statements | ||||
Net income | $ 2,154 | $ 1,791 | $ 7,325 | $ 5,553 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (79) | 61 | (154) | 223 |
Change in net unrealized gains (losses) on available-for-sale securities | (171) | 26 | (707) | 218 |
Pension, postretirement and other | 5 | 0 | 16 | 4 |
Change in net debt valuation adjustment | (743) | (149) | 347 | (323) |
Total other comprehensive income (loss) | (988) | (62) | (498) | 122 |
Comprehensive income | 1,166 | 1,729 | 6,827 | 5,675 |
Net income applicable to noncontrolling interests | 42 | 10 | 108 | 85 |
Other comprehensive income (loss) applicable to noncontrolling interests | (59) | (6) | 4 | 23 |
Comprehensive income applicable to Morgan Stanley | $ 1,183 | $ 1,725 | $ 6,715 | $ 5,567 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 36,641 | $ 24,816 |
Interest bearing deposits with banks | 22,638 | 21,348 |
Restricted cash | 33,202 | 34,231 |
Trading assets at fair value ($127,919 and $169,735 were pledged to various parties) | 283,188 | 298,282 |
Investment securities (includes $57,232 and $55,203 at fair value) | 82,568 | 78,802 |
Securities purchased under agreements to resell | 69,086 | 84,258 |
Securities borrowed | 142,489 | 124,010 |
Customer and other receivables | 60,839 | 56,187 |
Held for investment (net of allowance of $231 and $224) | 98,330 | 92,953 |
Held for sale | 11,653 | 11,173 |
Goodwill | 6,680 | 6,597 |
Intangible assets (net of accumulated amortization of $2,995 and $2,730) | 2,240 | 2,448 |
Other assets | 15,963 | 16,628 |
Total assets | 865,517 | 851,733 |
Liabilities | ||
Deposits (includes $382 and $204 at fair value) | 175,185 | 159,436 |
Trading liabilities at fair value | 129,032 | 131,295 |
Securities sold under agreements to repurchase (includes $784 and $800 at fair value) | 60,328 | 56,424 |
Securities loaned | 11,833 | 13,592 |
Other secured financings (includes $4,554 and $3,863 at fair value) | 10,057 | 11,271 |
Customer and other payables | 191,026 | 191,510 |
Other liabilities and accrued expenses | 17,093 | 17,157 |
Borrowings (includes $50,506 and $46,912 at fair value) | 190,889 | 192,582 |
Total liabilities | 785,443 | 773,267 |
Commitments and contingent liabilities | ||
Equity | ||
Preferred stock | 8,520 | 8,520 |
Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,725,792,278 and 1,788,086,805 | 20 | 20 |
Additional paid-in capital | 23,664 | 23,545 |
Retained earnings | 63,330 | 57,577 |
Employee stock trusts | 2,797 | 2,907 |
Accumulated other comprehensive income (loss) | (3,999) | (3,060) |
Common stock held in treasury at cost, $0.01 par value (313,101,701 and 250,807,174 shares) | (12,832) | (9,211) |
Common stock issued to employee stock trusts | (2,797) | (2,907) |
Total Morgan Stanley shareholders' equity | 78,703 | 77,391 |
Noncontrolling interests | 1,371 | 1,075 |
Total equity | 80,074 | 78,466 |
Total liabilities and equity | $ 865,517 | $ 851,733 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets | ||
Trading assets pledged to various parties | $ 127,919 | $ 169,735 |
Investment securities at fair value | 57,232 | 55,203 |
Allowance for loans held for investment | 231 | 224 |
Intangible assets, accumulated amortization | 2,995 | 2,730 |
Deposits at fair value | 382 | 204 |
Securities sold under agreement to repurchase at fair value | 784 | 800 |
Other secured financings at fair value | 4,554 | 3,863 |
Borrowings at fair value | $ 50,506 | $ 46,912 |
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 | 1,725,792,278 | 1,788,086,805 |
Common stock held in treasury, shares | 313,101,701 | 250,807,174 |
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 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 | [1] | 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 and related tax effects | 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 Sep. 30, 2017 | 80,114 | 8,520 | 20 | 23,389 | 57,554 | 2,899 | (2,544) | (7,961) | (2,899) | 1,136 | |
Balance at Dec. 31, 2017 | 78,466 | 8,520 | 20 | 23,545 | 57,577 | 2,907 | (3,060) | (9,211) | (2,907) | 1,075 | |
Cumulative adjustment for accounting changes | [1] | (131) | 306 | (437) | |||||||
Net income applicable to Morgan Stanley | 7,217 | 7,217 | |||||||||
Net income applicable to noncontrolling interests | 108 | 108 | |||||||||
Dividends | (1,770) | (1,770) | |||||||||
Shares issued under employee plans | 878 | 119 | (110) | 759 | 110 | ||||||
Repurchases of common stock and employee tax withholdings | (4,380) | (4,380) | |||||||||
Net change in Accumulated other comprehensive income (loss) | (498) | (502) | 4 | ||||||||
Other net increases (decreases) | 184 | 184 | |||||||||
Balance at Sep. 30, 2018 | $ 80,074 | $ 8,520 | $ 20 | $ 23,664 | $ 63,330 | $ 2,797 | $ (3,999) | $ (12,832) | $ (2,797) | $ 1,371 | |
[1] | The cumulative adjustment s relate to the adoption of certain accounting updates during the current and prior year periods. See Notes 2 and 14 for further information. |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statements (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 7,325 | $ 5,553 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
(Income) loss from equity method investments | (62) | 0 |
Stock-based compensation expense | 743 | 775 |
Depreciation and amortization | 1,375 | 1,340 |
(Release of) Provision for credit losses on lending activities | (27) | 32 |
Other operating adjustments | 35 | (62) |
Changes in assets and liabilities: | ||
Trading assets, net of Trading liabilities | 10,039 | (19,646) |
Securities borrowed | (18,479) | (7,656) |
Securities loaned | (1,759) | (214) |
Customer and other receivables and other assets | (4,092) | (7,930) |
Customer and other payables and other liabilities | 310 | 8,055 |
Securities purchased under agreements to resell | 15,172 | 11,849 |
Securities sold under agreements to repurchase | 3,904 | (645) |
Net cash provided by (used for) operating activities | 14,484 | (8,549) |
Cash flows from investing activities | ||
Other assets-Premises, equipment and software, net | (1,361) | (1,177) |
Changes in loans, net | (7,697) | (9,350) |
Investment securities: | ||
Purchases | (16,836) | (19,713) |
Proceeds from sales | 2,947 | 16,111 |
Proceeds from paydowns and maturities | 9,126 | 5,378 |
Other investing activities | (245) | (77) |
Net cash provided by (used for) investing activities | (14,066) | (8,828) |
Cash flows from financing activities | ||
Noncontrolling interests | (95) | (43) |
Other secured financings | (1,874) | 1,400 |
Deposits | 15,749 | (1,224) |
Proceeds from: | ||
Derivatives financing activities | 0 | 73 |
Issuance of preferred stock, net of issuance costs | 0 | 994 |
Issuance of Borrowings | 34,233 | 46,121 |
Payments for: | ||
Borrowings | (28,235) | (25,097) |
Derivatives financing activities | 0 | (73) |
Repurchases of common stock and employee tax withholdings | (4,380) | (3,008) |
Cash dividends | (1,788) | (1,562) |
Other financing activities | (248) | (48) |
Net cash provided by (used for) financing activities | 13,362 | 17,533 |
Effect of exchange rate changes on cash and cash equivalents | (1,694) | 3,406 |
Net increase (decrease) in cash and cash equivalents | 12,086 | 3,562 |
Cash and cash equivalents, at beginning of period | 80,395 | 77,360 |
Cash and cash equivalents, at end of period | 92,481 | 80,922 |
Cash and cash equivalents: | ||
Cash and due from banks | 36,641 | 24,047 |
Interest bearing deposits with banks | 22,638 | 24,144 |
Restricted cash | 33,202 | 32,731 |
Cash and cash equivalents, at end of period | 92,481 | 80,922 |
Supplemental Disclosure of Cash Flow Information | ||
Cash payments for interest | 6,818 | 3,422 |
Cash payments for income taxes, net of refunds | $ 1,009 | $ 967 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Introduction and Basis of Presentation | |
Introduction and Basis of Presentation | 1 . Introduction and Basis of Presentation The Firm Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Acronyms” for definitions of certain acronyms used throughout this Form 10-Q. A descript ion of the clients and principal products and services of each of the Firm ’s business segments is as follows: Institutional Securities provides investment banking, sales and trading, lending and other services to corporations, governments, financial inst itutions, 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 a nd acquisitions, restructurings, real estate and project finance. Sales and trading services include sales, financing, prime brokerage and market-making activities in equity and fixed income products, including foreign exchange and commodities . Lending ser vices include originating and/or purchasing corporate loans, commercial and residential mortgage lending, asset-backed lending and financing extended to equities and commodities customers and municipalities. Other activities include investments and researc h. Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions covering brokerage and investment advisory services, financial and wealth planning servic es, 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/def ined 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 unaudited consolidated financial statements (“financial statements”) are prepared in accordance with U.S. GAAP , which requires the Firm to make estimates and assumptions regarding the valuations of cer tain 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 related disclosures . The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. Intercompany balances and transactions have been eliminated. Certain rec lassifications 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 financial statements and notes thereto included in the 2017 Form 10-K. Certain footn ote disclosures included in the 2017 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 tha t are, in the opinion of management, necessary for the fair presentation of the results for the interim period. The results of operations for interim periods are not necessarily indicative of results for the entire year. Consolidation The financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 12 ). For consolidated subsidiaries that are less than wholly owned, th e third-party holdings of equity interests are referred to as noncontrolling interests. The net income attributable to noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the consolidated inco me 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 (“bala nce 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 financial statements in the 2017 Form 10-K. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
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 financial statements in the 2017 Form 10-K. During the nine months ended September 30, 2018 (“current year period”), there were no significant revisions to the Firm’s significant accounting policies, other than for Carried Interest and the accounting updates adopted. Carried Interest 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. Beginning January 1, 2018, when the Firm earns carried interest from funds as specified performance thresholds are met, that carried interest and any related general or limited partner interest is accounted for under the equity method of accounting and mea sured based on the Firm’s claim on the NAV of the fund at the reporting date , taking into account the distribution terms applicable to the interest held. Performance-based fees in the form of carried interest considered equity method investments are theref ore outside the scope of the policies for revenue from contracts with customers discussed below. See Note 11 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously re ceived. Accounting Updates Adopted The Firm adopted the following accounting updates in the current year period . Prior period results are presented under previous policies. See Note 14 for a summary of the Retained earnings impacts of these and ot her minor adoptions effective in the current year period . Revenue from Contracts with Customers On January 1, 2018, we adopted Revenue from Contracts with Customers using the modified retrospective method, which resulted in a net decrease to Retained ear nings of $ 32 million, net of tax. Prior period amounts were not restated. Our revised accounting policy in accordance with this adoption is effective January 1, 2018, and is discussed below. Revenue Recognition Revenues are recognized when the promised goods or services are delivered to our customers, in an amount that is based on the consideration the Firm expects to receive in exchange for those goods or services when such amounts are not probable of significant reversal. ● Investment Bankin g Revenue from investment banking activities consists of revenues earned from underwriting primarily equity and fixed income securities and advisory fees for mergers, acquisitions, restructuring and advisory assignments. Underwriting revenues are generally recognized on trade date if there is no uncertainty or contingency related to the amount to be paid. Underwriting costs are deferred and recognized in the relevant non- interest expense s line items when the related underwriting revenues are record ed. Advisory fees are recognized as advice is provided to the client, based on the estimated progress of work and when the revenue is not probable of a significant reversal. Advisory costs are recognized as incurred in the relevant non- interest expense s line items, including when reimbursed. ● Commissions and Fees Commission and fee revenues result from transaction-based arrangements in which the client is charged a fee for the execution of transactions. Such revenues primarily arise from transactions in equity securities; services related to sales and trading activities; and sales of mutual funds, alternative funds, futures, insurance products and options. Commission and fee revenues are recognized on trade date when the perfo rmance obligation is satisfied. ● Asset Management Revenues Asset management, distribution and administration fees are generally based on related asset levels being managed, such as t he AUM of a customer’s account, or the net asset value of a fund. These fees are generally recognized when services are performed and the fees become known. Management fees are reduced by estimated fee waivers and expense caps, if any, provided to the cust omer. Performance-based fees not in the form of carried interest are recorded when the annual performance target is met and the revenue is not probable of a significant reversal. Performance-based fees in the form of carried interest are considered equit y method investments and are therefore outside the scope of these policies for revenue from contracts with customers. Sales commissions paid by the Firm in connection with the sale of certain classes of shares of its open-end mutual fund products are a ccounted for as deferred commission assets and amortized to expense over the expected life of the contract. The Firm periodically tests deferred commission assets for recoverability based on cash flows expected to be received in future periods. Other asset management and distribution costs are recognized as incurred in the relevant non- interest expense s line items. ● Other Items Revenue from commodities-related contracts is recognized as the promised goods or services are delivered to the customer. Rece ivables from contracts with customers are recognized in Customer and other receivables in the balance sheets when the underlying performance obligations have been satisfied and the Firm has the right per the contract to bill the customer. Contract assets a re recognized in Other assets when the Firm has satisfied its performance obligations, but customer payment is conditional. Contract liabilities are recognized in Other liabilities when the Firm has collected payment from a customer based on the terms of t he contract, but the underlying performance obligations are not yet satisfied. For contracts with a term less than one year, incremental costs to obtain the contract are expensed as incurred. Revenues are not discounted when payment is expected within o ne year. The Firm presents, net within revenues, all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Firm from a customer . Derivatives and Hedging–Targeted Improvements to Accounting for Hedging Activities This accounting update aims to better align the hedge accounting requirements with an entity’s risk management strategies and improve the financial reporting of hedging relationships. It also results in simplification of the application of hedge accounting related to the assessment of hedge effectiveness. The Firm early adopted this accounting update in the first quarter of 2018. Upon adoption, the Firm recorded a cumul ative catch-up adjustment, decreasing Retained earnings by $ 99 million, net of tax. This adjustment represents the cumulative effect of applying the new rules from the inception of certain fair value hedges of the interest rate risk of our borrowings, in p articular the provision allowing only the benchmark rate component of coupon cash flows to be hedged. Effective January 1, 2018, in accordance with this adoption, t he Firm has updated its accounting policies to permit the hedged item in a fair value hedge of interest rate risk to be defined as including only the benchmark rate component of contractual coupon cash flows, and to allow for hedging part of the contractual term of the hedged instrument. The accounting policy also requires the entire gain or los s from revaluing hedges of net investments in foreign operations at the spot rate to be reported within AOCI. In the current quarter, the Firm began designating interest rate swaps as fair value hedges of changes in the benchmark interest rate of certain AFS securities . Consistent with the Firm’s existing fair value hedges of borrowings, the Firm uses regression analysis to perform an ongoing prospective and retrospective assessment of the effectiveness of these hedging relationships. For qualifying fair value hedges of benchmark interest rates, the changes in the fair value of the derivative and the changes in the fair value of the hedged asset due to changes in the benchmark interest rate provide an offset of one another and are recorded in Interest inc ome. When a derivative is de-designated as a hedge, any basis adjustment remaining on the hedged asset is amortized to Interest income over the remaining life of the asset using the effective interest method. Reclassification of Certain Tax Effects from A ccumulated Other Comprehensive Income This accounting update, which the Firm elected to early adopt as of January 1, 2018, allows companies to reclassify from AOCI to Retained earnings the stranded tax effects associated with enactment of the Tax Act on D ecember 22, 2017. These stranded tax effects resulted from the requirement to reflect the total amount of the remeasurement of and other adjustments to deferred tax assets and liabilities in 2017 in income from continuing operations, regardless of whether the deferred taxes were originally recorded in AOCI. Accordingly, as of January 1, 2018, the Firm recorded a net increase to Retained earnings as a result of the reclassification of $ 443 million of such stranded tax effects previously recorded in AOCI, whi ch were primarily the result of the remeasurement of deferred tax assets and liabilities associated with the change in tax rates. Aside from the above treatment related to the Tax Act, the Firm releases stranded tax effects from AOCI into earnings once t he related category of instruments or transactions giving rise to these effects no longer exists . For further detail on the tax effects reclassified, refer to Note 14 to the financial statements. Goodwill The Firm completed its annual goodwill impairment testing as of July 1, 2018. 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 i ts carrying value. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at fair value Trading assets: U.S. Treasury and agency securities $ 25,578 $ 24,183 $ 5 $ — $ 49,766 Other sovereign government obligations 26,698 5,016 36 — 31,750 State and municipal securities — 3,002 4 — 3,006 MABS — 2,652 316 — 2,968 Loans and lending commitments 2 — 6,031 6,735 — 12,766 Corporate and other debt — 21,722 710 — 22,432 Corporate equities 3 125,028 413 106 — 125,547 Derivative and other contracts: Interest rate 1,883 156,753 1,029 — 159,665 Credit — 5,740 416 — 6,156 Foreign exchange 72 63,647 10 — 63,729 Equity 3,206 45,505 1,207 — 49,918 Commodity and Other 519 7,105 3,487 — 11,111 Netting 1 (4,417) (208,658) (1,003) (45,862) (259,940) Total derivative and other contracts 1,263 70,092 5,146 (45,862) 30,639 Investments 4 603 255 818 — 1,676 Physical commodities — 226 — — 226 Total trading assets 4 179,170 133,592 13,876 (45,862) 280,776 Investment securities— AFS 32,846 24,386 — — 57,232 Intangible assets — 3 — — 3 Total assets at fair value $ 212,016 $ 157,981 $ 13,876 $ (45,862) $ 338,011 At September 30, 2018 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at fair value Deposits $ — $ 309 $ 73 $ — $ 382 Trading liabilities: U.S. Treasury and agency securities 14,169 245 — — 14,414 Other sovereign government obligations 18,779 1,770 — — 20,549 Corporate and other debt — 8,421 1 — 8,422 Corporate equities 3 59,630 178 13 — 59,821 Derivative and other contracts: Interest rate 1,860 141,016 452 — 143,328 Credit — 6,156 395 — 6,551 Foreign exchange 12 61,662 54 — 61,728 Equity 3,070 45,439 2,878 — 51,387 Commodity and other 659 8,255 1,467 — 10,381 Netting 1 (4,417) (208,658) (1,003) (33,471) (247,549) Total derivative and other contracts 1,184 53,870 4,243 (33,471) 25,826 Total trading liabilities 93,762 64,484 4,257 (33,471) 129,032 Securities sold under agreements to repurchase — 784 — — 784 Other secured financings — 4,382 172 — 4,554 Borrowings — 46,886 3,620 — 50,506 Total liabilities at fair value $ 93,762 $ 116,845 $ 8,122 $ (33,471) $ 185,258 At December 31, 2017 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at fair value Trading assets: U.S. Treasury and agency securities $ 22,077 $ 26,888 $ — $ — $ 48,965 Other sovereign government obligations 20,234 7,825 1 — 28,060 State and municipal securities — 3,592 8 — 3,600 MABS — 2,364 423 — 2,787 Loans and lending commitments 2 — 4,791 5,945 — 10,736 Corporate and other debt — 16,837 701 — 17,538 Corporate equities 3 149,697 492 166 — 150,355 Derivative and other contracts: Interest rate 472 178,704 1,763 — 180,939 Credit — 7,602 420 — 8,022 Foreign exchange 58 53,724 15 — 53,797 Equity 1,101 40,359 3,530 — 44,990 Commodity and other 1,126 5,390 4,147 — 10,663 Netting 1 (2,088) (216,764) (1,575) (47,171) (267,598) Total derivative and other contracts 669 69,015 8,300 (47,171) 30,813 Investments 4 297 523 1,020 — 1,840 Physical commodities — 1,024 — — 1,024 Total trading assets 4 192,974 133,351 16,564 (47,171) 295,718 Investment securities— AFS 27,522 27,681 — — 55,203 Intangible assets — 3 — — 3 Total assets at fair value $ 220,496 $ 161,035 $ 16,564 $ (47,171) $ 350,924 At December 31, 2017 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at fair value Deposits $ — $ 157 $ 47 $ — $ 204 Trading liabilities: U.S. Treasury and agency securities 17,802 24 — — 17,826 Other sovereign government obligations 24,857 2,016 — — 26,873 Corporate and other debt — 7,141 3 — 7,144 Corporate equities 3 52,653 82 22 — 52,757 Derivative and other contracts: Interest rate 364 162,239 545 — 163,148 Credit — 8,166 379 — 8,545 Foreign exchange 23 55,118 127 — 55,268 Equity 1,001 44,666 2,322 — 47,989 Commodity and other 1,032 5,156 2,701 — 8,889 Netting 1 (2,088) (216,764) (1,575) (36,717) (257,144) Total derivative and other contracts 332 58,581 4,499 (36,717) 26,695 Total trading liabilities 95,644 67,844 4,524 (36,717) 131,295 Securities sold under agreements to repurchase — 650 150 — 800 Other secured financings — 3,624 239 — 3,863 Borrowings — 43,928 2,984 — 46,912 Total liabilities at fair value $ 95,644 $ 116,203 $ 7,944 $ (36,717) $ 183,074 MABS—Mortgage- and a sset-backed securities 1. For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Netting.” 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 . 2. For a further breakdown by type, see the following Loans and Lending Commitments at Fair Value table. 3. For trading purposes, the Firm holds or sells short equity securities issued by entities in diverse industries and of varying sizes. 4. Amounts exclude certain investments that are measured based on NA V per share, which are not classified in the fair value hierarchy. For additional disclos ure about such investments, see “Measured Based on Net Asset Value” herein. Loans and Lending Commitments at Fair Value At At September 30, December 31, $ in millions 2018 2017 Corporate $ 9,489 $ 8,358 Residential real estate 912 799 Wholesale real estate 2,365 1,579 Total $ 12,766 $ 10,736 Unsettled Fair Value of Futures Contracts 1 At At September 30, December 31, $ in millions 2018 2017 Customer and other receivables, net $ 660 $ 831 1. These contracts are primarily Level 1, actively traded , valued based on quoted prices from the exchange and are excluded from the previous recurring fair value tables . 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 financial statements in the 2017 Form 10-K. During the current year period, there were no significant revisions 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 quarter ended September 30, 2018 (“current quarter”) and September 30, 2017 (“prior year quarter”), the current year period and the nine months ended September 30, 2017 (“prior year period”). Level 3 instruments may be hedged with instruments cla ssified in Level 1 and Level 2. T he realized and unrealized gains (losses) fo r assets and liabilities within the Level 3 category presented in the following tables do not reflect the related realized and unrealized gains (losses) on hedging instruments that have been classifi ed by the Firm within the Level 1 and/or Level 2 categories. Additionally, 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 d uring 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, 2018 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at September 30, 2018 Unrealized Gains (Losses) Assets at Fair Value Trading assets: U.S. Treasury and agency securities $ — $ — $ 5 $ — $ — $ — $ 5 $ — Other sovereign government obligations 5 — 32 (2) — 1 36 — State and municipal securities 2 — 2 — — — 4 — MABS 327 (1) 23 (46) (14) 27 316 (8) Loans and lending commitments 6,923 17 2,076 (1,184) (777) (320) 6,735 12 Corporate and other debt 701 (4) 109 (153) (6) 63 710 9 Corporate equities 171 (7) 15 (50) — (23) 106 5 Net derivative and other contracts 3 : Interest rate 567 (3) 12 (9) (2) 12 577 24 Credit (2) (39) 4 — 58 — 21 (41) Foreign exchange (26) (35) — — 2 15 (44) (9) Equity (1,535) (149) 29 (138) 84 38 (1,671) (132) Commodity and other 2,032 (29) — (11) (1) 29 2,020 (105) Total net derivative and other contracts 1,036 (255) 45 (158) 141 94 903 (263) Investments 941 5 72 (103) — (97) 818 2 Liabilities at Fair Value Deposits $ 37 $ (2) $ — $ 11 $ — $ 23 $ 73 $ (2) Trading liabilities: Corporate and other debt 1 — — — — — 1 — Corporate equities 24 — (12) 3 — (2) 13 — Other secured financings 170 (2) — — — — 172 (2) Borrowings 3,295 (56) — 344 (81) 6 3,620 (55) 1. Loan originations and consolidations of VIEs are included in purchases and deconsolid ations of VIEs are included in S ettlements. 2. Amounts related to entering into Net derivatives and other contracts, Deposits, Other secured financings and B orrowings primarily represent issuances. Amounts for other line items primarily represent sales. 3. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Amounts are pr esented before counterparty netting. 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, 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) Assets at Fair Value Trading assets: Other sovereign government obligations $ 100 $ 2 $ 86 $ (82) $ — $ (2) $ 104 $ 1 State and municipal securities 9 — 4 (3) — — 10 — MABS 264 4 52 (54) — 8 274 1 Loans and lending commitments 4,864 25 1,772 (1,431) (236) (129) 4,865 17 Corporate and other debt 693 41 220 (241) (4) (21) 688 34 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 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) Borrowings 2,646 (53) — 679 (49) (726) 2,603 (47) 1. Loan originations and consolidations of VIEs are included in purchases and deconsolid ations of VIEs are included in S ettlements. 2. Amounts related to entering into Net derivatives and other contracts, Deposits, Other secured financings and B orrowings primarily represent issuances. Amounts for other line items primarily represent sales. 3. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Amounts are pr esented before counterparty netting. 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, 2017 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at September 30, 2018 Unrealized Gains (Losses) Assets at fair value Trading assets: U.S. Treasury and agency securities $ — $ — $ 5 $ — $ — $ — $ 5 $ — Other sovereign government obligations 1 — 35 — — — 36 — State and municipal securities 8 — 3 (7) — — 4 — MABS 423 88 73 (317) (16) 65 316 (6) Loans and lending commitments 5,945 16 4,030 (978) (1,926) (352) 6,735 (8) Corporate and other debt 701 51 276 (227) (8) (83) 710 16 Corporate equities 166 17 69 (134) — (12) 106 14 Net derivative and other contracts 3 : Interest rate 1,218 (46) 84 (38) (92) (549) 577 (47) Credit 41 (17) 9 (40) 30 (2) 21 (20) Foreign exchange (112) 71 2 (48) 43 — (44) 1 Equity 4 1,208 83 120 (1,052) 319 (2,349) (1,671) 19 Commodity and other 1,446 332 80 (18) 17 163 2,020 33 Total net derivative and other contracts 3,801 423 295 (1,196) 317 (2,737) 903 (14) Investments 1,020 5 134 (209) — (132) 818 5 Liabilities at fair value Deposits $ 47 $ 1 $ — $ 27 $ (2) $ 2 $ 73 $ 1 Trading liabilities: Corporate and other debt 3 — (3) 1 — — 1 — Corporate equities 22 4 (12) 11 — (4) 13 4 Securities sold under agreements to repurchase 150 — — — — (150) — — Other secured financings 239 16 — 8 (18) (41) 172 16 Borrowings 2,984 156 — 1,275 (339) (144) 3,620 168 1. Loan originations and consolid ations of VIEs are included in P urchases and deconsolid ations of VIEs are included in S ettlements. 2. Amounts related to entering into Net derivative and other contracts, Deposits, Other secured financings and B orrowings primarily represent issuances. Amounts for other line items primarily represent sales. 3. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Amounts are pre sented before counterparty netting. 4. During the current year period, the Firm transferred from Level 3 to Level 2 $ 2.4 billion of Equity Derivatives due to a reduction in the significance of the unobservable inputs relating to volatility. 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, 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) 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 — State and municipal securities 250 3 6 (81) — (168) 10 — MABS 217 49 120 (120) (16) 24 274 13 Loans and lending commitments 5,122 88 2,470 (1,927) (964) 76 4,865 85 Corporate and other debt 475 67 437 (383) (7) 99 688 3 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) Trading liabilities: 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) Borrowings 2,014 (142) — 1,418 (328) (643) 2,603 (136) 1. Loan originations and consolidations of VIE s are included in P urchases and deconsolidations of VIE s are included in S ettlements. 2. Amounts related to entering into Net derivative and other contracts, Deposits, Other secured financings and B orrowings primarily represent issuances. Amounts for other line items primarily represent sales. 3. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Amounts are presen ted before counterparty netting. 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 valu e measurements to changes in the significant unobservable inputs , see Note 3 to the financial statements in the 2017 Form 10-K . There are no predictable relationships between multiple significant unobservable inputs attributable to a given valuation techni que. A single amount is disclosed when there is no significant difference between the minimum, maximum and average . Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements Recurring Fair Value Measurement Balance / Range (Average 1 ) $ in millions, except inputs At September 30, 2018 At December 31, 2017 Assets at Fair Value MABS $ 316 $ 423 Comparable pricing: Bond price 0 to 100 points (34 points) 0 to 95 points (26 points) Loans and lending commitments $ 6,735 $ 5,945 Margin loan model: Discount rate 1% to 6% (2%) 0% to 3% (1%) Volatility skew 14% to 59% (27%) 7% to 41% (22%) Comparable pricing: Loan price 56 to 105 points (97 points) 55 to 102 points (95 points) Corporate and other debt $ 710 $ 701 Comparable pricing: Bond price 0 to 100 points (62 points) 3 to 134 points (59 points) Discounted cash flow: Recovery rate 20% 6% to 36% (27%) Discount rate 15% to 25% (16%) 7% to 20% (14%) Option model: At the money volatility 23% to 51% (34%) 17% to 52% (52%) Corporate equities $ 106 $ 166 Comparable pricing: Equity price 100% 100% Net derivative and other contracts 2 : Interest rate $ 577 $ 1,218 Option model: IR volatility skew 27% to 95% (43% / 41%) 31% to 97% (41% / 47%) Inflation volatility 26% to 66% (46% / 43%) 23% to 63% (44% / 41%) IR curve 2% 2% Credit $ 21 $ 41 Comparable pricing: Cash synthetic basis 8 to 9 points (9 points) 12 to 13 points (12 points) Bond price 0 to 75 points (28 points) 0 to 75 points (25 points) Credit spread 195 to 474 bps (349 bps) N/M Correlation model: Credit correlation 35% to 74% (48%) 38% to 100% (48%) Foreign exchange 3 $ (44) $ (112) Option model: IR FX correlation 53% to 57% (55% / 55%) 54% to 57% (56% / 56%) IR volatility skew 27% to 95% (43% / 41%) 31% to 97% (41% / 47%) Contingency probability 85% to 95% (93% / 95%) 95% to 100% (96% / 95%) Equity 3 $ (1,671) $ 1,208 Option model: At the money volatility 12% to 56% (34%) 7% to 54% (32%) Volatility skew -2% to 0% (-1%) -5% to 0% (-1%) Equity correlation 5% to 99% (67%) 5% to 99% (76%) FX correlation -64% to 10% (-47%) -55% to 40% (36%) IR correlation -7% to 44% (15% / 10%) -7% to 49% (18% / 20%) Commodity and other $ 2,020 $ 1,446 Option model: Forward power price $3 to $169 ($30) per MWh $4 to $102 ($31) per MWh Commodity volatility 5% to 104% (15%) 7% to 205% (17%) Cross-commodity correlation 5% to 99% (92%) 5% to 99% (92%) Investments $ 818 $ 1,020 Discounted cash flow: WACC 8% to 15% (9%) 8% to 15% (9%) Exit multiple 7 to 10 times (10 times) 8 to 11 times (10 times) Market approach: EBITDA multiple 3 to 23 times (13 times) 6 to 25 times (11 times) Comparable pricing: Equity price 25% to 100% (95%) 45% to 100% (92%) Liabilities at Fair Value Deposits $ 73 $ 47 Option Model At the money volatility 17% to 38% (20%) N/M Volatility skew 0% N/M Other secured financings $ 172 $ 239 Discounted cash flow: Funding spread 60 to 260 bps (160 bps) 39 to 76 bps (57 bps) Option model: Volatility skew N/A -1% At the money volatility 10% to 40% (26%) 10% to 40% (26%) Borrowings $ 3,620 $ 2,984 Option model: At the money volatility 5% to 35% (23%) 5% to 35% (22%) Volatility skew -2% to 0% (0%) -2% to 0% (0%) Equity correlation 38% to 98% (75%) 39% to 95% (86%) Equity - FX correlation -75% to 50% (-28%) -55% to 10% (-18%) Nonrecurring Fair Value Measurement Loans $ 1,096 $ 924 Corporate loan model: Credit spread 96 to 400 bps (160 bps) 93 to 563 bps (239 bps) Expected recovery: Asset coverage N/M 95% to 99% (95%) Points—Percentage of par IR—Interest rate FX—Foreign exchange 1. Amounts represent weighted averages except where simple averages and the median of the inputs are more relevant. 2. CVA and FVA are included in the balance but excluded from the Valuation Technique(s) and Significant Unobservable Inputs. 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 observabilit y of funding spreads in the principal market. 3. I ncludes derivative contracts with multiple risks ( i.e. , hybrid products). For a description of the Firm’s significant unobservable inputs and related sensitivity, see Note 3 to the financial sta tements in the 2017 Form 10-K. During the current year period, there were no significant revisions made to the Firm’s significant unobservable inputs. Measured Based on Net Asset Value At September 30, 2018 At December 31, 2017 Carrying Carrying $ in millions Value Commitment Value Commitment Private equity $ 1,568 $ 328 $ 1,674 $ 308 Real estate 749 168 800 183 Hedge 1 95 4 90 4 Total $ 2,412 $ 500 $ 2,564 $ 495 1. Investments in hedge funds may be subject to initial period lock-up or gate provisions, which restrict an investor from withdrawing from the fund during a certain initial period or restrict the redemption amount on any redemption date, respectively. For a description of the Firm’s investments in private equity funds, real estate funds and hedge funds, which are measured based on NAV, see Note 3 to the financial statements in the 2017 Form 10-K. Amounts in the previous table represent the Firm’s carrying value of general and limited partnership interests in fund investments, as well as any related performance fees in the form of carried interest. The carrying amounts are measured based on the NAV of the fund taking into account the distribution te rms applicable to the interest held. This same measurement applies whether investments are accounted for under the equity method or fair value. See Note 11 for information regarding general partner guarantees, which include potential obligations to re turn performance fee distributions previously received. See Note 19 for information regarding related performance fees at risk of reversal, including performance fees in the form of carried interest. Nonredeemable Funds by Contractual Maturity Carrying Value at September 30, 2018 $ in millions Private Equity Real Estate Less than 5 years $ 621 $ 408 5-10 years 816 313 Over 10 years 131 28 Total $ 1,568 $ 749 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 . Borrowings Measured at Fair Value on a Recurring Basis At At September 30, December 31, $ in millions 2018 2017 Business Unit Responsible for Risk Management Equity $ 25,049 $ 25,903 Interest rates 22,101 19,230 Foreign exchange 504 666 Credit 863 815 Commodities 1,989 298 Total $ 50,506 $ 46,912 Earnings Impact of Borrowings under the Fair Value Option Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Trading revenues $ 449 $ (964) $ 1,334 $ (3,484) Interest expense (59) (107) (234) (338) Net revenues 1 $ 390 $ (1,071) $ 1,100 $ (3,822) 1. Amounts do not reflect any gains or losses on related hedging instruments. Gains (losses) are mainly attributable to changes in foreign exchange rates, or interest rates or movements in the reference price or index. Gains (Losses) Due to Changes in Instrument-Specific Credit Risk Three Months Ended September 30, 2018 2017 $ in millions Trading Revenues OCI Trading Revenues OCI Borrowings $ (4) $ (1,010) $ 9 $ (226) Loans and other debt 1 55 ─ 49 ─ Lending commitments 2 (6) ─ ─ ─ Other (32) 28 ─ (3) Nine Months Ended September 30, 2018 2017 $ in millions Trading Revenues OCI Trading Revenues OCI Borrowings $ (22) $ 425 $ 1 $ (493) Loans and other debt 1 199 ─ 94 ─ Lending commitments 2 (3) ─ ─ ─ Other (32) 32 ─ (6) $ in millions At September 30, 2018 At December 31, 2017 Cumulative pre-tax DVA gain (loss) recognized in AOCI $ (1,374) $ (1,831) 1 . Loans and other debt instrument-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses. 2 . Gains (losses) on lending commitments were generally determined based on the differen ce between estimated expected client yields and contractual yields at each respective period-end . Excess of Contractual Principal Amount Over Fair Value At At September 30, December 31, $ in millions 2018 2017 Loans and other debt 1 $ 12,809 $ 13,481 Loans 90 or more days past due and/or on nonaccrual status 1 10,678 11,253 Borrowings 2 1,438 71 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. B orrowings in this table 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 2018 2017 Nonaccrual loans $ 1,522 $ 1,240 Nonaccrual loans 90 or more days past due $ 802 $ 779 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. M easured at Fair Value on a Nonr ecurring Basis Carrying and Fair Values At September 30, 2018 Fair Value $ in millions Level 2 Level 3 1 Total Assets Loans $ 1,460 $ 1,096 $ 2,556 Other assets—Other investments 15 36 51 Other assets—Premises, equipment and software ─ ─ ─ Total $ 1,475 $ 1,132 $ 2,607 Liabilities Other liabilities and accrued expenses— Lending commitments $ 185 $ 48 $ 233 Total $ 185 $ 48 $ 233 At December 31, 2017 Fair Value $ in millions Level 2 Level 3 1 Total Assets Loans $ 1,394 $ 924 $ 2,318 Other assets—Other investments ─ 144 144 Total $ 1,394 $ 1,068 $ 2,462 Liabilities Other liabilities and accrued expenses— Lending commitments $ 158 $ 38 $ 196 Total $ 158 $ 38 $ 196 1. For significant Level 3 balances, 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. Gains (Losses) from Fair Value Remeasurements 1 Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Assets Loans 2 $ (5) $ ─ $ 1 $ 41 Other assets—Other investments 3 (2) (6) (9) (6) Other assets—Premises, equipment and software 4 (3) (1) (13) (7) Total $ (10) $ (7) $ (21) $ 28 Liabilities Other liabilities and accrued expenses — Lending commitments 2 $ 31 $ 4 $ 41 $ 64 Total $ 31 $ 4 $ 41 $ 64 1. Gains and losses for Loans and Other assets — Other investments are classified in Othe r revenues. For other items, gains and losses are recorded in Other revenues if the item is held for sale, otherwise in Other expenses. 2. 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 CDS spread levels adjusted for any basis difference between cash and derivative instruments, or default recovery analysis where such trans actions and quotations are unobservable. 3. Loss es related to Other assets—Other investments were determined using techniques that included discounted cash flow models, methodologies that incorporate multiples of certain comparable companies and recently exec uted transactions. 4. Losses related to Other assets—Premis es, equipment and software were determined using techniques that included a default recovery analysis and recently executed transactions . Financial Instruments Not Measured at Fair Value At September 30, 2018 Carrying Fair Value $ in millions Value Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents: Cash and due from banks $ 36,641 $ 36,641 $ — $ — $ 36,641 Interest bearing deposits with banks 22,638 22,638 — — 22,638 Restricted cash 33,202 33,202 — — 33,202 Investment securities—HTM 25,336 12,757 10,883 442 24,082 Securities purchased under agreements to resell 69,086 — 69,026 — 69,026 Securities borrowed 142,489 — 142,433 — 142,433 Customer and other receivables 1 55,189 — 51,768 3,251 55,019 Loans 2 109,983 — 21,259 88,321 109,580 Other assets 483 — 483 — 483 Financial Liabilities Deposits $ 174,803 $ — $ 174,764 $ — $ 174,764 Securities sold under agreements to repurchase 59,544 — 59,495 — 59,495 Securities loaned 11,833 — 11,909 — 11,909 Other secured financings 5,503 — 3,876 1,634 5,510 Customer and other payables 1 188,054 — 188,054 — 188,054 Borrowings 140,383 — 145,076 30 145,106 At December 31, 2017 Carrying Fair Value $ in millions Value Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents: Cash and due from banks $ 24,816 $ 24,816 $ — $ — $ 24,816 Interest bearing deposits with banks 21,348 21,348 — — 21,348 Restricted cash 34,231 34,231 — — 34,231 Investment securities— HTM 23,599 11,119 11,673 289 23,081 Securities purchased under agreements to resell 84,258 — 78,239 5,978 84,217 Securities borrowed 124,010 — 124,018 1 124,019 Customer and other receivables 1 51,269 — 47,159 3,984 51,143 Loans 2 104,126 — 21,290 82,928 104,218 Other assets 433 — 433 — 433 Financial Liabilities Deposits $ 159,232 $ — $ 159,232 $ — $ 159,232 Securities sold under agreements to repurchase 55,624 — 51,752 3,867 55,619 Securities loaned 13,592 — 13,191 401 13,592 Other secured financings 7,408 — 5,987 1,431 7,418 Customer and other payables 1 188,464 — 188,464 — 188,464 Borrowings 145,670 — 151,692 30 151,722 1. Accrued interest and dividend receivables and payables where carrying value approximates fair value have been excluded. 2. Amounts include loans measured at fair value on a non recurring basis . Lending Commitments—Held for Investment and Held for Sale Commitment Fair Value $ in millions Amount 1 Level 2 Level 3 Total September 30, 2018 $ 106,904 $ 702 $ 204 $ 906 December 31, 2017 100,151 620 174 794 1. For further discussion on lending commitments, see Note 11 . The previous tables exclude certain financial instruments such as equity method investments and all non-financial assets and liabilities such as the value of the long-term relationships with the Firm’s deposit customers. During the current year period , there were no significant updates made to the Firm’s valuation techniques for financial instruments not measured at fair value. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 4 . Derivative Instruments and Hedging Activities Derivative Fair Values At September 30, 2018 Assets $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 467 $ — $ — $ 467 Foreign exchange contracts 107 46 — 153 Total 574 46 — 620 Not designated as accounting hedges Interest rate contracts 156,859 1,960 379 159,198 Credit contracts 4,446 1,710 — 6,156 Foreign exchange contracts 61,596 1,798 182 63,576 Equity contracts 26,522 — 23,396 49,918 Commodity and other contracts 8,975 — 2,136 11,111 Total 258,398 5,468 26,093 289,959 Total gross derivatives $ 258,972 $ 5,514 $ 26,093 $ 290,579 Amounts offset Counterparty netting (190,040) (4,850) (24,242) (219,132) Cash collateral netting (40,294) (514) — (40,808) Total in Trading assets $ 28,638 $ 150 $ 1,851 $ 30,639 Amounts not offset 1 Financial instruments collateral (14,077) — — (14,077) Other cash collateral (29) — — (29) Net amounts $ 14,532 $ 150 $ 1,851 $ 16,533 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 3,590 Liabilities $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 270 $ 1 $ — $ 271 Foreign exchange contracts 19 14 — 33 Total 289 15 — 304 Not designated as accounting hedges Interest rate contracts 140,816 1,733 508 143,057 Credit contracts 4,452 2,099 — 6,551 Foreign exchange contracts 59,763 1,848 84 61,695 Equity contracts 28,920 — 22,467 51,387 Commodity and other contracts 8,308 — 2,073 10,381 Total 242,259 5,680 25,132 273,071 Total gross derivatives $ 242,548 $ 5,695 $ 25,132 $ 273,375 Amounts offset Counterparty netting (190,040) (4,850) (24,242) (219,132) Cash collateral netting (27,777) (640) — (28,417) Total in Trading liabilities $ 24,731 $ 205 $ 890 $ 25,826 Amounts not offset 1 Financial instruments collateral (4,729) — (143) (4,872) Other cash collateral (33) — — (33) Net amounts $ 19,969 $ 205 $ 747 $ 20,921 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 5,763 At December 31, 2017 Assets $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 1,057 $ — $ — $ 1,057 Foreign exchange contracts 57 6 — 63 Total 1,114 6 — 1,120 Not designated as accounting hedges Interest rate contracts 177,948 1,700 234 179,882 Credit contracts 5,740 2,282 — 8,022 Foreign exchange contracts 52,878 798 58 53,734 Equity contracts 24,452 — 20,538 44,990 Commodity and other contracts 8,861 — 1,802 10,663 Total 269,879 4,780 22,632 297,291 Total gross derivatives $ 270,993 $ 4,786 $ 22,632 $ 298,411 Amounts offset Counterparty netting (201,051) (3,856) (19,861) (224,768) Cash collateral netting (42,141) (689) — (42,830) Total in Trading assets $ 27,801 $ 241 $ 2,771 $ 30,813 Amounts not offset 1 Financial instruments collateral (12,363) — — (12,363) Other cash collateral (4) — — (4) Net amounts $ 15,434 $ 241 $ 2,771 $ 18,446 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 3,154 Liabilities $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 67 $ 1 $ — $ 68 Foreign exchange contracts 72 57 — 129 Total 139 58 — 197 Not designated as accounting hedges Interest rate contracts 161,758 1,178 144 163,080 Credit contracts 6,273 2,272 — 8,545 Foreign exchange contracts 54,191 925 23 55,139 Equity contracts 27,993 — 19,996 47,989 Commodity and other contracts 7,117 — 1,772 8,889 Total 257,332 4,375 21,935 283,642 Total gross derivatives $ 257,471 $ 4,433 $ 21,935 $ 283,839 Amounts offset Counterparty netting (201,051) (3,856) (19,861) (224,768) Cash collateral netting (31,892) (484) — (32,376) Total in Trading liabilities $ 24,528 $ 93 $ 2,074 $ 26,695 Amounts not offset 1 Financial instruments collateral (5,523) — (412) (5,935) Other cash collateral (18) (14) — (32) Net amounts $ 18,987 $ 79 $ 1,662 $ 20,728 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 3,751 1. Amounts relate to master netting agreements and collateral agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance . See Note 3 for information related to the unsettled fair value of futures contracts not designated as accounting hedges, which are excluded from the previous tables Derivative Notionals At September 30, 2018 Assets $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 16 $ 8 $ — $ 24 Foreign exchange contracts 5 1 — 6 Total 21 9 — 30 Not designated as accounting hedges Interest rate contracts 5,359 7,067 1,206 13,632 Credit contracts 139 71 — 210 Foreign exchange contracts 2,160 91 18 2,269 Equity contracts 433 — 406 839 Commodity and other contracts 95 — 64 159 Total 8,186 7,229 1,694 17,109 Total gross derivatives $ 8,207 $ 7,238 $ 1,694 $ 17,139 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 2 $ 153 $ — $ 155 Foreign exchange contracts 3 1 — 4 Total 5 154 — 159 Not designated as accounting hedges Interest rate contracts 5,317 6,361 710 12,388 Credit contracts 146 79 — 225 Foreign exchange contracts 2,155 87 17 2,259 Equity contracts 462 — 578 1,040 Commodity and other contracts 77 — 62 139 Total 8,157 6,527 1,367 16,051 Total gross derivatives $ 8,162 $ 6,681 $ 1,367 $ 16,210 At December 31, 2017 Assets $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 20 $ 46 $ — $ 66 Foreign exchange contracts 4 — — 4 Total 24 46 — 70 Not designated as accounting hedges Interest rate contracts 3,999 6,458 2,714 13,171 Credit contracts 194 100 — 294 Foreign exchange contracts 1,960 67 9 2,036 Equity contracts 397 — 334 731 Commodity and other contracts 86 — 72 158 Total 6,636 6,625 3,129 16,390 Total gross derivatives $ 6,660 $ 6,671 $ 3,129 $ 16,460 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 2 $ 102 $ — $ 104 Foreign exchange contracts 4 2 — 6 Total 6 104 — 110 Not designated as accounting hedges Interest rate contracts 4,199 6,325 1,089 11,613 Credit contracts 226 80 — 306 Foreign exchange contracts 2,014 78 51 2,143 Equity contracts 394 — 405 799 Commodity and other contracts 68 — 61 129 Total 6,901 6,483 1,606 14,990 Total gross derivatives $ 6,907 $ 6,587 $ 1,606 $ 15,100 The Firm believes that the notional amounts of derivative contracts generally overstate its exposure. For information related to offsetting of certain collateralized transactions, see Note 6 . For a discussion of the Firm’s derivative instruments and hedging activities, see Note 4 to the financial statements in the 2017 Form 10-K. Gains (Losses) on Accounting Hedges Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Fair Value Hedges—Recognized in Interest Expense Interest rate contracts $ (1,124) $ (218) $ (3,584) $ (878) Borrowings 1,124 175 3,563 670 Net Investment Hedges—Foreign exchange contracts Recognized in OCI $ 107 $ (88) $ 354 $ (340) Forward points excluded from hedge effectiveness testing—Recognized in Interest income 13 (3) 44 (22) Fair Value Hedges—Hedged Items $ in millions At September 30, 2018 Investment Securities—AFS 1 Carrying amount 2 currently or previously hedged $ 86 Borrowings Carrying amount 2 currently or previously hedged $ 103,269 Basis adjustments included in carrying amount 3 $ (3,744) 1. In the current quarter, the Firm began designating interest rate swaps as fair value hedges of certain AFS securities. Amounts recognized in interest income and basis adjustments related to AFS securities were not material. 2. Carrying amount represents amortized cost basis. 3. Hedge accounting basis adjustments for Borrowings are primarily related to outstanding hedges. 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. Net Derivative Liabilities and Collateral Posted At At September 30, December 31, $ in millions 2018 2017 Net derivative liabilities with credit risk-related contingent features $ 16,081 $ 20,675 Collateral posted 12,745 16,642 The previous table presents the aggregate fair value of certain derivative contracts that contain credit risk-related contingent features that are in a net liability position for which the Firm has posted collateral in the normal course of business. Incremental Collateral or Termination Payments upon Potential Future Ratings Downgrade At September 30, $ in millions 2018 One-notch downgrade $ 429 Two-notch downgrade 325 Bilateral downgrade agreements included in the amounts above 1 $ 653 1. Amount represents arrangements between the Firm and other parties where upon the downgrade of one party, the downgraded party must deliver collateral to the other party. These bilateral downg rade arrangements are used by the Firm to manage the risk of counterparty downgrades. The additional collateral or termination payments that may be called in the event of a future credit rating downgrade vary by contract and can be based on ratings by either or both of Moody’s Investors Service, Inc. (“ Moody’s”) and S&P Global Ratings . The previous table shows the future potential collateral amounts and termination payments that could be called or required by counterparties or exchange and clearing organizations in the event of one-notch or two-notch downgrade scenarios based on the rele vant contractual downgrade triggers. Credit Derivatives and Other Credit Contracts The Firm enters into credit derivatives, principally CDS, under which it receives or provides protection against the risk of default on a set of debt obligations issued by a specified reference entity or entities. A majority of the Firm’s counterparties for these derivatives are banks, broker-dealers, and insurance and other financial institutions. For further information on credit derivatives and other credit contracts, see Note 4 to the financial statements in the 2017 Form 10-K. Protection Sold and Purchased with CDS At September 30, 2018 Fair Value (Asset)/Liability Notional Protection Protection Protection Protection $ in millions Sold Purchased Sold Purchased Single name $ (326) $ 469 $ 111,848 $ 127,114 Index and basket 159 (67) 81,810 94,320 Tranched index and basket (207) 367 6,844 12,738 Total $ (374) $ 769 $ 200,502 $ 234,172 At December 31, 2017 Fair Value (Asset)/Liability Notional Protection Protection Protection Protection $ in millions Sold Purchased Sold Purchased Single name $ (1,277) $ 1,658 $ 146,948 $ 164,773 Index and basket (341) 209 131,073 120,348 Tranched index and basket (342) 616 11,864 24,498 Total $ (1,960) $ 2,483 $ 289,885 $ 309,619 Maximum Potential Payout/Notional of Credit Protection Sold 1 Years to maturity at September 30, 2018 $ in millions < 1 1-3 3-5 Over 5 Total Single name CDS Investment grade $ 24,275 $ 25,802 $ 17,512 $ 9,721 $ 77,310 Non-investment grade 11,777 12,006 8,743 2,012 34,538 Total $ 36,052 $ 37,808 $ 26,255 $ 11,733 $ 111,848 Index and basket CDS Investment grade $ 6,594 $ 8,975 $ 22,203 $ 16,832 $ 54,604 Non-investment grade 5,300 6,884 9,727 12,139 34,050 Total $ 11,894 $ 15,859 $ 31,930 $ 28,971 $ 88,654 Total CDS sold $ 47,946 $ 53,667 $ 58,185 $ 40,704 $ 200,502 Other credit contracts — — — 129 129 Total credit protection sold $ 47,946 $ 53,667 $ 58,185 $ 40,833 $ 200,631 CDS protection sold with identical protection purchased $ 186,961 Years to maturity at December 31, 2017 $ in millions < 1 1-3 3-5 Over 5 Total Single name CDS Investment grade $ 39,721 $ 42,591 $ 18,157 $ 8,872 $ 109,341 Non-investment grade 14,213 16,293 6,193 908 37,607 Total $ 53,934 $ 58,884 $ 24,350 $ 9,780 $ 146,948 Index and basket CDS Investment grade $ 29,046 $ 15,418 $ 37,343 $ 6,807 $ 88,614 Non-investment grade 5,246 7,371 32,417 9,289 54,323 Total $ 34,292 $ 22,789 $ 69,760 $ 16,096 $ 142,937 Total CDS sold $ 88,226 $ 81,673 $ 94,110 $ 25,876 $ 289,885 Other credit contracts 2 — — 134 136 Total credit protection sold $ 88,228 $ 81,673 $ 94,110 $ 26,010 $ 290,021 CDS protection sold with identical protection purchased $ 274,473 Fair Value (Asset)/Liability of Credit Protection Sold 1 At At $ in millions September 30, 2018 December 31, 2017 Single name CDS Investment grade $ (387) $ (1,167) Non-investment grade 61 (110) Total $ (326) $ (1,277) Index and basket CDS Investment grade $ (683) $ (1,091) Non-investment grade 635 408 Total $ (48) $ (683) Total CDS sold $ (374) $ (1,960) Other credit contracts 21 16 Total credit protection sold $ (353) $ (1,944) 1. Investment grade/non-investment grade determination is based on the internal credit rating of the reference obligation. The f air value amounts as shown in the previous table are prior to cash collateral or counterparty netting. Internal credit ratings serve as the Credit Risk Management Department’s assessment of credit risk and the basis for a comprehensive credit limits framework used to control credit risk. The Firm uses quantitative models and judgment to estimate the various risk parameters related to each obligor . |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investment securities | |
Investment Securities | 5 . Investment Securities AFS and HTM Securities At September 30, 2018 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS securities U.S. government and agency securities: U.S. Treasury securities $ 33,093 $ — $ 1,026 $ 32,067 U.S. agency securities 1 20,368 14 658 19,724 Total U.S. government and agency securities 53,461 14 1,684 51,791 Corporate and other debt: Agency CMBS 1,198 1 70 1,129 Non-agency CMBS 465 — 18 447 Corporate bonds 1,402 — 34 1,368 State and municipal securities 200 — — 200 CLO 262 — — 262 FFELP student loan ABS 2 2,027 15 7 2,035 Total corporate and other debt 5,554 16 129 5,441 Total AFS securities 59,015 30 1,813 57,232 HTM securities U.S. government and agency securities: U.S. Treasury securities 13,387 — 630 12,757 U.S. agency securities 1 11,500 — 617 10,883 Total U.S. government and agency securities 24,887 — 1,247 23,640 Corporate and other debt: Non-agency CMBS 449 1 8 442 Total HTM securities 25,336 1 1,255 24,082 Total investment securities $ 84,351 $ 31 $ 3,068 $ 81,314 At December 31, 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 $ 26,842 $ — $ 589 $ 26,253 U.S. agency securities 1 22,803 28 247 22,584 Total U.S. government and agency securities 49,645 28 836 48,837 Corporate and other debt: Agency CMBS 1,370 2 49 1,323 Non-agency CMBS 1,102 — 8 1,094 Corporate bonds 1,379 5 12 1,372 CLO 398 1 — 399 FFELP student loan ABS 2 2,165 15 7 2,173 Total corporate and other debt 6,414 23 76 6,361 Total AFS debt securities 56,059 51 912 55,198 AFS equity securities 15 — 10 5 Total AFS securities 56,074 51 922 55,203 HTM securities U.S. government and agency securities: U.S. Treasury securities 11,424 — 305 11,119 U.S. agency securities 1 11,886 7 220 11,673 Total U.S. government and agency securities 23,310 7 525 22,792 Corporate and other debt: Non-agency CMBS 289 1 1 289 Total HTM securities 23,599 8 526 23,081 Total investment securities $ 79,673 $ 59 $ 1,448 $ 78,284 1. U.S. agency securities consist mainly of agency-issued debt, agency mortgage pass-through pool securities and CMO s. 2. Underlying loans are backed by a guarantee , ultimately from the U.S. Department of Education , of at leas t 95 % of the principal balance and interest outstanding. Investment Securities in an Unrealized Loss Position At September 30, 2018 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS securities U.S. government and agency securities: U.S. Treasury securities $ 26,238 $ 858 $ 5,284 $ 168 $ 31,522 $ 1,026 U.S. agency securities 13,615 525 2,604 133 16,219 658 Total U.S. government and agency securities 39,853 1,383 7,888 301 47,741 1,684 Corporate and other debt: Agency CMBS 828 70 — — 828 70 Non-agency CMBS 224 7 223 11 447 18 Corporate bonds 725 14 521 20 1,246 34 FFELP student loan ABS 881 7 — — 881 7 Total corporate and other debt 2,658 98 744 31 3,402 129 Total AFS securities 42,511 1,481 8,632 332 51,143 1,813 HTM securities U.S. government and agency securities: U.S. Treasury securities 3,102 44 9,655 586 12,757 630 U.S. agency securities 2,373 73 8,510 544 10,883 617 Total U.S. government and agency securities 5,475 117 18,165 1,130 23,640 1,247 Corporate and other debt: Non-agency CMBS 195 5 68 3 263 8 Total HTM securities 5,670 122 18,233 1,133 23,903 1,255 Total investment securities $ 48,181 $ 1,603 $ 26,865 $ 1,465 $ 75,046 $ 3,068 At December 31, 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 $ 21,941 $ 495 $ 4,287 $ 94 $ 26,228 $ 589 U.S. agency securities 12,673 192 2,513 55 15,186 247 Total U.S. government and agency securities 34,614 687 6,800 149 41,414 836 Corporate and other debt: Agency CMBS 930 49 — — 930 49 Non-agency CMBS 257 1 559 7 816 8 Corporate bonds 316 3 389 9 705 12 FFELP student loan ABS 984 7 — — 984 7 Total corporate and other debt 2,487 60 948 16 3,435 76 Total AFS debt securities 37,101 747 7,748 165 44,849 912 AFS equity securities — — 5 10 5 10 Total AFS securities 37,101 747 7,753 175 44,854 922 HTM securities U.S. government and agency securities: U.S. Treasury securities 6,608 86 4,512 219 11,120 305 U.S. agency securities 2,879 24 7,298 196 10,177 220 Total U.S. government and agency securities 9,487 110 11,810 415 21,297 525 Corporate and other debt: Non-agency CMBS 124 1 — — 124 1 Total HTM securities 9,611 111 11,810 415 21,421 526 Total investment securities $ 46,712 $ 858 $ 19,563 $ 590 $ 66,275 $ 1,448 T he Firm believes there are no securities in an unrealized loss position that are other-than-temporarily impaired after performing the analysis described in Note 2 to the financial statements in the 2017 Form 10-K . 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 the amortized cost basis. Furthermore, for AFS and HTM debt securities, the securities have not experienced credit losses as the net unrealized losse s reported in the previous table are primarily due to higher interest rates since those securities were purchased. See Note 1 2 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, non-agency CMBS, CLO and FFELP student loan ABS. Investment Securities by Contractual Maturity At September 30, 2018 $ in millions Amortized Cost Fair Value Annualized Average Yield AFS securities U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 3,447 $ 3,432 1.3% After 1 year through 5 years 27,517 26,734 1.9% After 5 years through 10 years 2,129 1,901 1.4% Total 33,093 32,067 U.S. agency securities: Due within 1 year 473 467 1.0% After 1 year through 5 years 806 789 1.2% After 5 years through 10 years 1,718 1,644 1.8% After 10 years 17,371 16,824 2.1% Total 20,368 19,724 Total U.S. government and agency securities 53,461 51,791 1.9% Corporate and other debt: Agency CMBS: Due within 1 year 3 3 0.9% After 1 year through 5 years 384 382 1.3% After 5 years through 10 years 40 41 1.2% After 10 years 771 703 1.6% Total 1,198 1,129 Non-agency CMBS: After 5 years through 10 years 36 34 2.5% After 10 years 429 413 2.4% Total 465 447 Corporate bonds: Due within 1 year 70 70 1.7% After 1 year through 5 years 1,270 1,237 2.4% After 5 years through 10 years 62 61 3.4% Total 1,402 1,368 State and municipal securities: After 1 year through 5 years 200 200 3.5% Total 200 200 CLO: After 5 years through 10 years 64 64 1.5% After 10 years 198 198 2.4% Total 262 262 FFELP student loan ABS: After 1 year through 5 years 84 83 0.8% After 5 years through 10 years 319 316 0.8% After 10 years 1,624 1,636 1.2% Total 2,027 2,035 Total corporate and other debt 5,554 5,441 1.8% Total AFS securities 59,015 57,232 1.9% HTM securities U.S. government securities: U.S. Treasury securities: Due within 1 year 2,126 2,118 1.2% After 1 year through 5 years 5,423 5,303 2.0% After 5 years through 10 years 5,112 4,725 1.9% After 10 years 726 611 2.3% Total 13,387 12,757 U.S. agency securities: After 5 years through 10 years 31 30 1.9% After 10 years 11,469 10,853 2.6% Total 11,500 10,883 Total U.S. government and agency securities 24,887 23,640 2.2% Corporate and other debt: Non-agency CMBS: Due within 1 year 68 68 3.5% After 1 year through 5 years 61 61 4.4% After 5 years through 10 years 301 295 4.0% After 10 years 19 18 4.0% Total corporate and other debt 449 442 4.0% Total HTM securities 25,336 24,082 2.2% Total investment securities $ 84,351 $ 81,314 2.0% Gross Realized Gains (Losses) on Sales of AFS Securities Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Gross realized gains $ 5 $ 11 $ 11 $ 38 Gross realized (losses) — — (3) (11) Total 1 $ 5 $ 11 $ 8 $ 27 1. Gross realized gains and losses are recognized in Other revenues in the income statements. |
Collateralized Transactions
Collateralized Transactions | 9 Months Ended |
Sep. 30, 2018 | |
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 financial statements in the 2017 Form 10-K. Offsetting of Certain Collateralized Transactions At September 30, 2018 $ in millions Gross Amounts Amounts Offset Net Amounts Presented Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 212,796 $ (143,710) $ 69,086 $ (63,821) $ 5,265 Securities borrowed 161,903 (19,414) 142,489 (136,940) 5,549 Liabilities Securities sold under agreements to repurchase $ 204,038 $ (143,710) $ 60,328 $ (52,421) $ 7,907 Securities loaned 31,247 (19,414) 11,833 (11,664) 169 Net amounts for which master netting agreements are not in place or may not be legally enforceable Securities purchased under agreements to resell $ 3,640 Securities borrowed 1,377 Securities sold under agreements to repurchase 6,074 Securities loaned 142 At December 31, 2017 $ in millions Gross Amounts Amounts Offset Net Amounts Presented Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 199,044 $ (114,786) $ 84,258 $ (78,009) $ 6,249 Securities borrowed 133,431 (9,421) 124,010 (119,358) 4,652 Liabilities Securities sold under agreements to repurchase $ 171,210 $ (114,786) $ 56,424 $ (48,067) $ 8,357 Securities loaned 23,014 (9,422) 13,592 (13,271) 321 Net amounts for which master netting agreements are not in place or may not be legally enforceable Securities purchased under agreements to resell $ 5,687 Securities borrowed 572 Securities sold under agreements to repurchase 6,945 Securities loaned 307 1. Amounts relate to master netting agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. For information related to offsetting of derivatives, see Note 4 . Maturities and Collateral Pledged Gross Secured Financing Balances by Remaining Contractual Maturity At September 30, 2018 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase $ 69,184 $ 59,181 $ 32,727 $ 42,946 $ 204,038 Securities loaned 19,930 3,698 1,733 5,886 31,247 Total included in the offsetting disclosure $ 89,114 $ 62,879 $ 34,460 $ 48,832 $ 235,285 Trading liabilities ― Obligation to return securities received as collateral 18,727 — — — 18,727 Total $ 107,841 $ 62,879 $ 34,460 $ 48,832 $ 254,012 At December 31, 2017 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase $ 41,332 $ 66,593 $ 28,682 $ 34,603 $ 171,210 Securities loaned 12,130 873 1,577 8,434 23,014 Total included in the offsetting disclosure $ 53,462 $ 67,466 $ 30,259 $ 43,037 $ 194,224 Trading liabilities ― Obligation to return securities received as collateral 22,555 — — — 22,555 Total $ 76,017 $ 67,466 $ 30,259 $ 43,037 $ 216,779 Gross Secured Financing Balances by Class of Collateral Pledged $ in millions At September 30, 2018 At December 31, 2017 Securities sold under agreements to repurchase U.S. Treasury and agency securities $ 54,625 $ 43,346 State and municipal securities 1,516 2,451 Other sovereign government obligations 115,046 87,141 ABS 2,257 1,130 Corporate and other debt 8,142 7,737 Corporate equities 21,756 28,497 Other 696 908 Total $ 204,038 $ 171,210 Securities loaned Other sovereign government obligations $ 19,850 $ 9,489 Corporate equities 11,270 13,174 Other 127 351 Total $ 31,247 $ 23,014 Total included in the offsetting disclosure $ 235,285 $ 194,224 Trading liabilities ― Obligation to return securities received as collateral Corporate equities $ 18,727 $ 22,555 Total $ 254,012 $ 216,779 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, and cover customer short sales . Counterparties may or may not have the right to sell or repledge the collateral. Pledged financial instruments that can be sold or repledged by the secured party are identified as Trading assets (pledged to various parties) in the balance sheets. Carrying Value of Assets Loaned or Pledged without Counterparty Right to Sell or Repledge At At September 30, December 31, $ in millions 2018 2017 Trading assets $ 31,347 $ 31,324 Loans (gross of allowance for loan losses) 570 228 Total $ 31,917 $ 31,552 Collateral Received The Firm receives collateral in the form of securities in connection with securities purchased under agreements to resell, securities borrowed, securities-for-securities transactions, derivative transactions, customer margin loans and securities-based lending. In many cases, the Firm is permitted to sell or repledge these securities held as collateral and use the securities to secure securities sold under agreements to repurchase , to en ter into securities lending and derivative transactions or for delivery to counterparties to cover short positions Fair Value of Collateral Received with Right to Sell or Repledge At At September 30, December 31, $ in millions 2018 2017 Collateral received with right to sell or repledge $ 658,309 $ 599,244 Collateral that was sold or repledged 1 505,108 475,113 1. Does not include securities used to meet federal regulations for the Firm’s broker-dealers. Customer Margin Lending and Other At At September 30, December 31, $ in millions 2018 2017 Net customer receivables representing margin loans $ 33,821 $ 32,112 The Firm provides m argin lending arrangements which allow customers to borrow against the value of qualifying securities. Customer receivables representing m argin loans are included within Customer and other receivables in the balance sheets. 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 a ctivities are collateralized by customer-owned securities held by the Firm. The Firm monitors required margin levels and established credit terms daily and, pursuant to such guidelines, requires customers to deposit additional collateral, or reduce positio ns, when necessary. For a further discussion of the Firm’s margin lending activities, see Note 6 to the financial statements in the 201 7 Form 10-K. The Firm has additional secured liabilities. For a further discussion of other secured financings, see Not e 10. Restricted Cash and Segregated Securities At At September 30, December 31, $ in millions 2018 2017 Restricted cash $ 33,202 $ 34,231 Segregated securities 1 25,820 20,549 Total $ 59,022 $ 54,780 1. Securities segregated under federal regulations for the Firm’s U.S. broker-dealers are sourced from Securities purchased under agreements to resell and Trading assets in the balance sheets. |
Loans, Lending Commitments and
Loans, Lending Commitments and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans and Allowance for Credit Losses | 7 . Loans , Lending Commitments 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 financial statements in the 2017 Form 10-K. See Note 3 for further information regarding Loans and lending commitments held at fair value. See Note 11 for details of current commitments to lend in the future . Loans by Type At September 30, 2018 Loans Held Loans Held $ in millions for Investment for Sale Total Loans Corporate loans $ 35,439 $ 10,035 $ 45,474 Consumer loans 28,321 — 28,321 Residential real estate loans 26,644 29 26,673 Wholesale real estate loans 8,157 1,589 9,746 Total loans, gross 98,561 11,653 110,214 Allowance for loan losses (231) — (231) Total loans, net $ 98,330 $ 11,653 $ 109,983 Fixed rate loans, net $ 15,263 Floating or adjustable rate loans, net 94,720 Loans to non-U.S. borrowers, net 14,346 At December 31, 2017 Loans Held Loans Held $ in millions for Investment for Sale Total Loans Corporate loans $ 29,754 $ 9,456 $ 39,210 Consumer loans 26,808 — 26,808 Residential real estate loans 26,635 35 26,670 Wholesale real estate loans 9,980 1,682 11,662 Total loans, gross 93,177 11,173 104,350 Allowance for loan losses (224) — (224) Total loans, net $ 92,953 $ 11,173 $ 104,126 Fixed rate loans, net $ 13,339 Floating or adjustable rate loans, net 90,787 Loans to non-U.S. borrowers, net 9,977 Credit Quality For a further discussion about the Firm’s evaluation of credit tra nsactions, 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 financial statements in the 2017 Form 10-K. Loans Held for Investment before Allowance by Credit Quality At September 30, 2018 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 35,062 $ 28,316 $ 26,563 $ 7,625 $ 97,566 Special mention 108 5 — 360 473 Substandard 268 — 81 172 521 Doubtful 1 — — — 1 Loss — — — — — Total $ 35,439 $ 28,321 $ 26,644 $ 8,157 $ 98,561 At December 31, 2017 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 29,166 $ 26,802 $ 26,562 $ 9,480 $ 92,010 Special mention 188 6 — 200 394 Substandard 393 — 73 300 766 Doubtful 7 — — — 7 Loss — — — — — Total $ 29,754 $ 26,808 $ 26,635 $ 9,980 $ 93,177 Impaired Loans and Lending Commitments before Allowance At September 30, 2018 Residential $ in millions Corporate Real Estate Total Loans With allowance $ 23 $ — $ 23 Without allowance 1 42 60 102 Total impaired loans $ 65 $ 60 $ 125 UPB 71 61 132 Lending Commitments With allowance $ 21 $ — $ 21 Without allowance 1 24 — 24 At December 31, 2017 Residential $ in millions Corporate Real Estate Total Loans With allowance $ 16 $ — $ 16 Without allowance 1 118 45 163 Total impaired loans $ 134 $ 45 $ 179 UPB 146 46 192 Lending Commitments Without allowance 1 $ 199 $ — $ 199 1. At September 30, 2018 and December 31, 2017 , 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. L oans and lending commitments in the previous table have been evaluated for a specific allowance. All remaining loans and lending commitments are assessed under the inherent allowance methodology. Impaired Loans and Total Allowance by Region At September 30, 2018 $ in millions Americas EMEA Asia Total Impaired loans $ 125 $ — $ — $ 125 Total Allowance for loan losses 192 38 1 231 At December 31, 2017 $ in millions Americas EMEA Asia Total Impaired loans $ 160 $ 9 $ 10 $ 179 Total Allowance for loan losses 194 27 3 224 Troubled Debt Restructurings At At September 30, December 31, $ in millions 2018 2017 Loans $ 46 $ 51 Lending commitments 37 28 Allowance for loan losses and lending commitments 4 10 Impaired loans and lending commitments classified as held for investment within corporate loans include TDRs 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 Residential Wholesale $ in millions Corporate Consumer Real Estate Real Estate Total December 31, 2017 $ 126 $ 4 $ 24 $ 70 $ 224 Gross charge-offs (4) — — — (4) Recoveries 1 54 — — — 54 Net recoveries (charge-offs) 50 — — — 50 Provision (release) 1, 2 (39) 1 (4) 9 (33) Other (2) — — (8) (10) September 30, 2018 $ 135 $ 5 $ 20 $ 71 $ 231 Inherent $ 130 $ 5 $ 20 $ 71 $ 226 Specific 5 — — — 5 Residential Wholesale $ in millions Corporate Consumer Real Estate Real Estate Total December 31, 2016 $ 195 $ 4 $ 20 $ 55 $ 274 Gross charge-offs (75) — — — (75) Recoveries 1 — — — 1 Net recoveries (charge-offs) (74) — — — (74) Provision (release) 2 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 1. The current year period release was primarily due to the recovery of a previously charged off energy industry related loan. 2. The Firm recorded a provision of $ 1 million and $ 13 million for loan losses in the current quarter and prior year quarter, respectively. Allowance for Lending Commitments Rollforward Residential Wholesale $ in millions Corporate Consumer Real Estate Real Estate Total December 31, 2017 $ 194 $ 1 $ — $ 3 $ 198 Provision (release) 1 5 — — 1 6 Other (2) — — (1) (3) September 30, 2018 $ 197 $ 1 $ — $ 3 $ 201 Inherent $ 190 $ 1 $ — $ 3 $ 194 Specific 7 — — — 7 Residential Wholesale $ in millions Corporate Consumer Real Estate Real Estate 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 1. The Firm recorded a provision of $ 1 million , and release of $ 6 million for lending commitments in the current quarter and prior year quarter, respectively. Employee Loans At At September 30, December 31, $ in millions 2018 2017 Balance $ 3,491 $ 4,185 Allowance for loan losses (70) (77) Balance, net $ 3,421 $ 4,108 Repayment term range, in years 1 to 20 1 to 20 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, 2018 | |
Equity Method Investments and Joint Ventures | |
Equity Method Investments | 8 . Equity Method Investments Overview Equity method investments other than certain investments in funds are summarized below and included in Other assets in the balance sheets with related income or loss included in Other revenues in the income statements. See the Measured Based on Net Asset Value table in Note 3 for the carrying value of the Firm’s fund interests, which are comprised of general and limited partnership interests, as well as any related performance-based fees in the form of carried interest. Equity Method Investment Balances At At September 30, December 31, $ in millions 2018 2017 Investments $ 2,452 $ 2,623 Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Income (loss) $ 8 $ — $ 62 $ — Ja panese Securities Joint Venture Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Income from investment in MUMSS $ 17 $ 25 $ 99 $ 96 Included in the equity method investments is t he Firm’s 40 % voting 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. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2018 | |
Deposits [Abstract] | |
Deposits | 9 . De posi ts Deposits At At September 30, December 31, $ in millions 2018 2017 Savings and demand deposits $ 143,962 $ 144,487 Time deposits 31,223 14,949 Total $ 175,185 $ 159,436 Deposits subject to FDIC insurance $ 134,872 $ 127,017 Time deposits that equal or exceed the FDIC insurance limit $ 12 $ 38 Time Deposit Maturities At September 30, $ in millions 2018 2018 $ 7,238 2019 12,519 2020 7,879 2021 1,569 2022 631 Thereafter 1,387 |
Borrowings and Other Secured Fi
Borrowings and Other Secured Financings | 9 Months Ended |
Sep. 30, 2018 | |
Borrowings and Other Secured Financings | |
Long-Term Borrowings and Other Secured Financings | 10 . Borrowings and Other Secured Financings Borrowings At At September 30, December 31, $ in millions 2018 2017 Original maturities of one year or less $ 940 $ 1,519 Original maturities greater than one year Senior $ 180,136 $ 180,835 Subordinated 9,813 10,228 Total $ 189,949 $ 191,063 Total borrowings $ 190,889 $ 192,582 Weighted average stated maturity, in years 1 6.6 6.6 1. Includes only borrowings with original maturities greater than one year. Other Secured Financings Other secured financings include the liabilities related to certain ELNs, transfers of financial assets that are accounted for as financings rather than sales, pledged commodities, consolidated VIEs where the Firm is deemed to be the primary beneficiary and other secured borrowings. These liabilities are generally payable from the cash flows of the related assets accounted fo r as Trading assets . See Note 12 for further information on other se cured financings related to VIEs and securitization activities. Other Secured Financings by Original Maturity and Type At At September 30, December 31, $ in millions 2018 2017 Original maturities: Greater than one year $ 7,840 $ 8,685 One year or less 1,555 2,034 Failed sales 662 552 Total $ 10,057 $ 11,271 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. The assets transferred to certain unconsolidated VI Es in transactions accounted for as failed sales cannot be remove d unilaterally by the Firm and are not generally available to the Firm. The related liabilities 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 de rivatives such as total return swaps, guarantees or other forms of involvement. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments, Guarantees and Contingencies [Abstract] | |
Commitments, Guarantees and Contingencies | 11 . Commitments, Guarantees and Contingencies Commitments Years to Maturity at September 30, 2018 Less $ in millions than 1 1-3 3-5 Over 5 Total Lending: Corporate $ 13,345 $ 32,893 $ 46,671 $ 7,805 $ 100,714 Consumer 7,074 — 11 — 7,085 Residential real estate — 83 13 253 349 Wholesale real estate 129 530 — — 659 Forward-starting secured financing receivables 82,818 — — 1,181 83,999 Investment activities 517 100 47 257 921 Letters of credit and other financial guarantees 184 1 — 39 224 Total $ 104,067 $ 33,607 $ 46,742 $ 9,535 $ 193,951 Corporate lending commitments participated to third parties $ 7,620 Forward-starting secured financing receivables settled within three business days $ 77,520 Since commitments associated with these instruments may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. For a further description of these commitments, refer to Note 12 to the financial statements in the 2017 Form 10-K. Guarantees Obligations under Guarantee Arrangements at September 30, 2018 Maximum Potential Payout/Notional Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Credit derivatives $ 47,946 $ 53,667 $ 58,185 $ 40,704 $ 200,502 Other credit contracts — — — 129 129 Non-credit derivatives 1,870,310 1,471,732 405,669 648,797 4,396,508 Standby letters of credit and other financial guarantees issued 1 1,009 913 1,452 4,908 8,282 Market value guarantees 16 101 24 — 141 Liquidity facilities 3,994 — — — 3,994 Whole loan sales guarantees — 1 — 23,215 23,216 Securitization representations and warranties — — — 63,208 63,208 General partner guarantees 4 52 338 34 428 Carrying Amount (Asset)/ Collateral/ $ in millions Liability Recourse Credit derivatives 2 $ (374) $ — Other credit contracts 21 — Non-credit derivatives 2 40,951 — Standby letters of credit and other financial guarantees issued 1 (234) 6,717 Market value guarantees — 3 Liquidity facilities (6) 6,459 Whole loan sales guarantees 9 — Securitization representations and warranties 62 — General partner guarantees 73 — 1. These amounts include certain issued standby letters of credit particip ated to third parties, totaling $ 0.6 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 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 allocate d specifically to individual contracts. Also, the Firm may recover amounts related to the underlying asset delivered to the Firm under a derivative contract. For more information on the nature of the obligation and related business activity for market val ue guarantees, liquidity facilities, whole loan sales guarantees and general partner guarantees related to certain investment management funds, as well as the other products in the previous table, see Note 12 to the financial statements in the 2017 Form 10 -K. Other Guarantees and Indemnities In the normal course of business, the Firm provides guarantees and indemnifications in a variety of transactions. These provisions generally are standard contractual terms. Certain of these guarantees and indemnifica tions related to indemnities, exchange/clearinghouse member guarantees and merger and acquisition guarantees are described in Note 12 to the financial statements in the 2017 Form 10-K. In addition, in the ordinary course of business, the Firm guarantees t he debt and/or certain trading obligations (including obligations associated with derivatives, foreign exchange contracts and the settlement of physical commodities) of certain subsidiaries. These guarantees generally are entity or product specific and are required by investors or trading counterparties. The activities of the Firm’s subsidiaries covered by these guarantees (including any related debt or trading obligations) are included in the financial statements. 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 addition to the matters described below, in the normal course of business, the Firm has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with its activities as a global diversified financial services institution. Certain of the actual or threatened l egal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the entities that would otherwise be the primary defendants in such cases are bankrupt or are in financial distr ess. 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-regulato ry 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 proceedin gs where the Firm believes a material loss to be reasonably possible and reasonably estimable, there can be no assurance that material losses will not be incurred from claims that have not yet been asserted or are not yet determined to be probable or possi ble and reasonably estimable losses. The Firm contests liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the financial stat ements 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 previously recognized loss contingency, it is not always possible to reaso nably estimate the size of the possible loss or range of loss. For certain legal proceedings and investigations, the Firm cannot reasonably estimate such losses, particularly for proceedings and investigations where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, disgorgement or penalties. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of importa nt factual matters, determination of issues related to class certification and the calculation of damages or other relief, and by addressing novel or unsettled legal questions relevant to the proceedings or investigations in question, before a loss or addi tional loss or range of loss or additional range of loss can be reasonably estimated for a proceeding or investigation. For certain other legal proceedings and investigations, the Firm can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but does not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on the Firm’s financial statements as a whole, other than the matters referred to in the following paragraphs. On July 15, 2010, China Development Industrial Bank (“CDIB”) filed a complaint against the Firm, styled China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. , which is pen ding in the Supreme Court of the State of New York, New York County (“Supreme Court of NY”). The complaint relates to a $275 million CDS referencing the super senior portion of the STACK 2006-1 CDO. The complaint asserts claims for common law fraud, fraudu lent inducement and fraudulent concealment and alleges that the Firm misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that the Firm knew that the assets backing the CDO were of poor quality when it entered into the CDS with CDIB. The complaint seeks compensatory damages related to the approximately $228 million that CDIB alleges it has already lost under the CDS, rescission of CDIB’s obligation to pay an additional $12 million, punitive damages, equitable relief, fees and costs. On February 28, 2011, the court denied the Firm’s motion to dismiss the complaint. On June 27, 2018, the Firm filed a motion for summary judgment and spoliation sanctions against CDIB. Based on currently available information, the Firm believes it could incur a loss in t his action of up to approximately $240 million plus pre- and post-judgment interest, fees and costs. On July 8, 2013, U.S. Bank National Association, in its capacity as trustee, filed a complaint against the Firm styled U.S. Bank National Association, so lely in its capacity as Trustee of the Morgan Stanley Mortgage Loan Trust 2007-2AX (MSM 2007-2AX) v. Morgan Stanley Mortgage Capital Holdings LLC, Successor-by-Merger to Morgan Stanley Mortgage Capital Inc. and GreenPoint Mortgage Funding, Inc. , pending in the Supreme Court of NY. The complaint asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original principal balance of approximately $650 million, breached various representations and warranti es. The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, unspecified damages and interest. On August 22, 2013, the Firm filed a motion to dismiss the complaint, which was granted i n part and denied in part on November 24, 2014. On August 13, 2018, the Firm filed a motion to renew its motion to dismiss. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately $240 mi llion, the total original unpaid balance of the mortgage loans for which the Firm received repurchase demands that it did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On September 19, 2014, Financial Guaranty Insurance Company (“FGIC”) filed a complaint against the Firm in the Supreme Court of NY, styled Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. relating to a securitization issued by Basket of Aggregated Residential NIMS 2007-1 Ltd. The complaint asserts claims for breach of contract and alleges, among other things, that the net interest margin securities (“NIMS”) in the trust breache d 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 rem edy procedures in the transaction documents, unspecified damages, reimbursement of certain payments made pursuant to the transaction documents, attorneys’ fees and interest. On November 24, 2014, the Firm filed a motion to dismiss the complaint, which the court denied on January 19, 2017. On September 13, 2018, the Appellate Division, First Department, affirmed the lower court’s order denying the Firm’s motion to dismiss. 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 claim payments that FGIC has made and will make in the future. On September 23, 2014, FGIC filed a co mplaint against the Firm in the Supreme Court of NY styled Financial Guaranty Insurance Company v. Morgan Stanley ABS Capital I Inc. et al. relating to the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4. The complaint asserts claims for breach of contrac t 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 cer tain 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 puniti ve damages, attorneys’ fees and interest. On January 23, 2017, the court denied the Firm’s motion to dismiss the complaint. On September 13, 2018, the Appellate Division, First Department, affirmed in part and reversed in part the lower court’s order denyi ng the Firm’s motion to dismiss. On October 15, 2018, the plaintiff filed a motion for leave to appeal the decision of the Appellate Division, First Department, to the New York Court of Appeals or, in the alternative, for reargument. 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 certifi cate holder and FGIC that the Firm did not repurchase, plus pre- and post-judgment interest, fees and costs, as well as claim payments that FGIC has made and will make in the future. In addition, plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. On January 23, 2015, Deutsche Bank National Trust Company, in its capacity as trustee, filed a complaint against the Firm styled Deutsche Bank National Trust Company solely in its capacity as Trustee of the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 v. Morgan Stanley Mortgage Capital Holdings LLC as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc., and Morgan Stanley ABS Capital I Inc. , pending in the Supreme Court of NY. The complaint assert s claims for breach of contract and alleges, among other things, that the loans in the trust, which had an original principal balance of approximately $1.05 billion, breached various representations and warranties. The complaint seeks, among other relief, specific performance of the loan breach remedy procedures in the transaction documents, compensatory, consequential, rescissory, equitable and punitive damages, attorneys’ fees, costs and other related expenses, and interest. On December 11, 2015, the cou rt 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. On October 19, 2018, the court granted the Firm’s motion for leave to amend its answer and to stay the case pending resolution of Deutsche Bank National Trust Company’s appeal to the New York Court of Appeals in another case. 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 ce rtificate holder and a monoline insurer that the Firm did not repurchase, plus pre- and post-judgment interest, fees and costs, but plaintiff is seeking to expand the number of loans at issue and the possible range of loss could increase. In matters styled Case number 15/3637 and Case number 15/4353 , the Dutch Tax Authority (“Dutch Authority”) is challenging, in the District Court in Amsterdam, the prior set-off by the Firm of approximately €124 million (approximately $14 4 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 rel evant 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. A hearing took place in this matter on September 19, 2017. On April 26, 2018, the District Cou rt in Amsterdam issued a decision dismissing the Dutch Authority’s claims. On June 6, 2018, the Dutch Authority filed an appeal against the decision issued by the District Court in Amsterdam. Based on currently available information, the Firm believes that it could incur a loss in this action of up to approximately €124 million (approximately $14 4 million) plus accrued interest. |
Variable Interest Entities and
Variable Interest Entities and Securitization Activities | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entities and Securitization Activities [Abstract] | |
Variable Interest Entity Disclosures | 12 . Variable Interest Entities and Securitization Activities Overview For a discussion o f the Firm’s VIE s , the determination and structure of VIE s and securitization activities, see Note 13 to the financial statements in the 201 7 Form 10-K. Consolidated VI Es Assets and Liabilities by Type of Activity At September 30, 2018 At December 31, 2017 $ in millions VIE Assets VIE Liabilities VIE Assets VIE Liabilities OSF $ 273 $ — $ 378 $ 3 MABS 1 66 44 249 210 Other 2 2,234 834 1,174 250 Total $ 2,573 $ 878 $ 1,801 $ 463 OSF—Other structured financings 1. Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets. The value of assets is determined based on the fair value of the liabilities and the interests owned by the Firm in such VIEs as the fair values for the liabilities and interests owned are more observable. 2. Other primarily includes investment fu nds, certain operating entities and structured transactions. At September 30, 2018, Other includes the consolidation of a fund managed by Mesa West Capital, LLC, which was acquired in the first quarter of 2018. Assets and Liabilities by Balance Sheet Caption At At September 30, December 31, $ in millions 2018 2017 Assets Cash and cash equivalents: Cash and due from banks $ 99 $ 69 Restricted cash 170 222 Trading assets at fair value 1,712 833 Customer and other receivables 22 19 Goodwill 18 18 Intangible assets 134 155 Other assets 418 485 Total $ 2,573 $ 1,801 Liabilities Other secured financings $ 845 $ 438 Other liabilities and accrued expenses 33 25 Total $ 878 $ 463 Noncontrolling interests $ 437 $ 189 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, guarantees o r other forms of involvement. In general, the Firm’s exposure to loss in consolidated VIEs is limited to losses that would be absorbed on the VIE net assets recognized in its financial statements, net of amounts absorbed by third-party variable interest h olders. Non-consolidated VIEs At September 30, 2018 $ in millions MABS CDO MTOB OSF Other VIE assets (UPB) $ 73,812 $ 15,427 $ 6,314 $ 3,457 $ 20,199 Maximum exposure to loss Debt and equity interests $ 8,598 $ 1,505 $ 17 $ 1,579 $ 5,006 Derivative and other contracts — — 3,994 — 1,756 Commitments, guarantees and other 863 630 — 139 327 Total $ 9,461 $ 2,135 $ 4,011 $ 1,718 $ 7,089 Carrying value of exposure to loss—Assets Debt and equity interests $ 8,598 $ 1,505 $ 17 $ 1,166 $ 5,006 Derivative and other contracts — — 6 — 70 Total $ 8,598 $ 1,505 $ 23 $ 1,166 $ 5,076 Additional VIE assets owned 1 $ 12,231 At December 31, 2017 $ in millions MABS CDO MTOB OSF Other VIE assets (UPB) $ 89,288 $ 9,807 $ 5,306 $ 3,322 $ 31,934 Maximum exposure to loss Debt and equity interests $ 10,657 $ 1,384 $ 80 $ 1,628 $ 4,730 Derivative and other contracts — — 3,333 — 1,686 Commitments, guarantees and other 1,214 668 — 164 433 Total $ 11,871 $ 2,052 $ 3,413 $ 1,792 $ 6,849 Carrying value of exposure to loss—Assets Debt and equity interests $ 10,657 $ 1,384 $ 43 $ 1,202 $ 4,730 Derivative and other contracts — — 5 — 184 Total $ 10,657 $ 1,384 $ 48 $ 1,202 $ 4,914 Additional VIE assets owned 1 $ 11,318 MTOB— Municipal tender option bonds 1. Additional VIE Assets owned represents the carrying value of total exposure to non-consolidated VIEs for which the maximum exposure to loss is less than specific thresholds, primarily interests issued by securitization SPEs . Most of the VIEs included in the previous tables are 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. The Firm’s maximum exposure to loss is dependent on the nature of the Firm’s variable interest in the VIE and is limited to: ● notional amounts of certain liquidity facilities; ● other credit support; ● total return swaps; ● written put options; and ● fair value of certain other derivatives and investments the Firm has made in the VIE. Where notional amounts are utilized in quantifying the maximum exposure related to derivatives, such amounts do not reflect changes in fair value recorded by the Firm. The Firm’s maximum exposure to loss presented in the previous table does not include: ● offsetting benefit of any financial instruments that the Firm may utilize to hedge these risks associated with its varia ble interests; and ● any reductions associated with the amount of collateral held as part of a transaction with the VIE or any party to the VIE directly against a specific exposure to loss. Liabilities issued by VIEs generally are non-recourse to the Fir m. The Firm’s primary risk exposure related to additional VIE assets owned is to the most subordinate class of beneficial interest, which are typically acquired by the Firm in the secondary market and generally issued by SPEs sponsored by unrelated parties. These assets , which generally consist of MABS, CDO, MTOB and other exposure, are primarily 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 transactions through contractual facilities, such as liquidity facilities, guarante es or similar derivatives. The Firm’s maximum exposure to loss generally equals the fair value of the assets owned. Mortgage- and Asset-Backed Securitization Assets At September 30, 2018 At December 31, 2017 UPB Debt and Equity Interests UPB Debt and Equity Interests $ in millions Residential mortgages $ 9,299 $ 923 $ 15,636 $ 1,272 Commercial mortgages 39,554 1,289 46,464 2,331 U.S. agency collateralized mortgage obligations 14,176 2,822 16,223 3,439 Other consumer or commercial loans 10,783 3,564 10,965 3,615 Total $ 73,812 $ 8,598 $ 89,288 $ 10,657 Transfers of Assets with Continuing Involvement At September 30, 2018 RML CML U.S. Agency CMO CLN and Other 1 $ in millions SPE assets (UPB) 2 $ 14,775 $ 66,829 $ 14,793 $ 17,101 Retained interests Investment grade $ 18 $ 492 $ 850 $ 14 Non-investment grade (fair value) 3 119 — 359 Total $ 21 $ 611 $ 850 $ 373 Interests purchased in the secondary market (fair value) Investment grade $ 7 $ 141 $ 71 $ — Non-investment grade 51 47 — — Total $ 58 $ 188 $ 71 $ — Derivative assets (fair value) $ — $ — $ — $ 140 Derivative liabilities (fair value) — — — 136 At December 31, 2017 RML CML U.S. Agency CMO CLN and Other 1 $ in millions SPE assets(UPB) 2 $ 15,555 $ 62,744 $ 11,612 $ 17,060 Retained interests Investment grade $ — $ 293 $ 407 $ 4 Non-investment grade (fair value) 1 98 — 478 Total $ 1 $ 391 $ 407 $ 482 Interests purchased in the secondary market (fair value) Investment grade $ — $ 94 $ 439 $ — Non-investment grade 16 66 — 4 Total $ 16 $ 160 $ 439 $ 4 Derivative assets (fair value) $ 1 $ — $ — $ 226 Derivative liabilities (fair value) — — — 85 RML—Residential mortgage loans CML—Commercial mortgage loans 1. Amounts include CLO transactions managed by unrelated third parties. 2. Amounts include assets transferred by unrelated transferors . Fair Value at September 30, 2018 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 868 $ 56 $ 924 Non-investment grade 139 342 481 Total $ 1,007 $ 398 $ 1,405 Interests purchased in the secondary market Investment grade $ 208 $ 11 $ 219 Non-investment grade 88 10 98 Total $ 296 $ 21 $ 317 Derivative assets $ 28 $ 112 $ 140 Derivative liabilities 133 3 136 Fair Value at December 31, 2017 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 407 $ 4 $ 411 Non-investment grade 22 555 577 Total $ 429 $ 559 $ 988 Interests purchased in the secondary market Investment grade $ 531 $ 2 $ 533 Non-investment grade 57 29 86 Total $ 588 $ 31 $ 619 Derivative assets $ 78 $ 149 $ 227 Derivative liabilities 81 4 85 The previous tables include transactions with SPEs in which the Firm, acting as principal, transferred financial assets with continuing involvement and received sales treatment. Transferred assets are carried at fair value prior to securitization, and any changes in fair value are recognized in the income statements. The Firm may act as underwriter of the beneficial interests issued by these securitization vehicles, for which Investment banking revenues are recognized. The Firm may reta in interests in the securitized financial assets as one or more tranches of the secu ritization. These retained interests 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 2018 2017 2018 2017 New transactions 1 $ 7,299 $ 6,875 $ 19,056 $ 17,622 Retained interests 584 648 2,222 1,607 Sales of corporate loans to CLO SPEs 1, 2 17 56 253 148 1. 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. 2. Sponsored by non-affiliates . The Firm has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Firm (see Note 11 ). Assets Sold with Retained Exposure At September 30, At December 31, $ in millions 2018 2017 Carrying value of assets derecognized at the time of sale and gross cash proceeds $ 28,121 $ 19,115 Fair value Assets sold $ 28,820 $ 19,138 Derivative assets recognized in the balance sheets 826 176 Derivative liabilities recognized in the balance sheets 127 153 The Firm retains the exposure to the securities as shown in the previous table. The Firm enters into transactions in which it sells equity securities and contemporaneously enters into bilateral OTC equity derivatives with the purchasers of the securities. |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2018 | |
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 financial statements in the 2017 Form 10-K. The Firm is required to maintain minimum risk-based and leverage -based capital ratios under the regulatory capital requirements. A summary of the calculations of regulatory capital, RWA and transition provisions follows. The Firm’s risk-based capital ratios for purposes of determining regulatory compliance are the lower of the capital ratios computed under (i) the standardized approaches for calculating credit risk and market risk RWA (“ Standardized Approach”) and (ii) the applicable advanced approaches for calculating credit risk, market risk and operational risk RWA (“ Advanced Approach”). Minimum risk-based capital ratio requirements apply to Common Equity Tier 1 capital, Tier 1 capital and Total capital ( which includes Tier 2 capital ) . Certain adjustments to and deductions from capital are required for purposes of determining these ratios, such as goodwill, intangible assets, certain deferred tax assets, other amounts in AOCI and investments in the capital instruments of unconsolidated financial institutions. In addition to the minimum risk-based capital ratio requirements, by 2019 the Firm will be subject to the following buffers : ● A greater than 2.5% Common Equity Tier 1 capital conservation buffer ; ● The Common Equity Tier 1 G-SIB capital surcharge, currently at 3%; and ● Up to a 2.5% Common Equity Tier 1 CCyB , currently set by U.S. banking agencies at zero . In 2018, each of the buffer s is 7 5% of the 2019 requirement noted above (during 2017, the b uffers were 50%) . Fail ure to maintain the buffers would result in restrictions on the Firm’s ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers . For a further discussion of the Firm’s calculation of risk-based capital ratios, see Note 14 to the financial statements in the 2017 Form 10-K . The Firm’s Regulatory Capital and Capital Ratios At September 30, 2018 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 8.6% $ 61,758 16.7% Tier 1 capital 10.1% 70,328 19.0% Total capital 12.1% 79,899 21.6% Total RWA 370,714 Leverage-based capital Tier 1 leverage 4.0% $ 70,328 8.2% Adjusted average assets 2 858,944 SLR 3 5.0% 70,328 6.4% Supplementary leverage exposure 4 1,101,263 At December 31, 2017 $ in millions Required Ratio 1 Amount Ratio 5 Risk-based capital Common Equity Tier 1 capital 7.3% $ 61,134 16.5% Tier 1 capital 8.8% 69,938 18.9% Total capital 10.8% 80,275 21.7% Total RWA 369,578 Leverage-based capital Tier 1 leverage 4.0% $ 69,938 8.3% Adjusted average assets 2 842,270 1. Percenta ges represent minimum required regulatory capital ratios —for risk-based capital, the ratios are under the transitional rules. 2 . Adjusted average assets represent s the denominator of t he Tier 1 leverage ratio and is 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, 2017 , adjusted for disallowed goodwill, intangible assets, certain deferred tax assets, certain investments in the capital instruments of unconsolidated financial institutions and other adjustments. 3 . The SLR became effective as a capital standard on January 1, 2018. 4 . Supplementary Leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily (i) potential future exposure for derivative exposures, gross-up for cash collateral netting where qualifying criteria are not met, and the effective notional principal amount of sold credit protection offset by qualifying pur chased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures. 5 . For risk- and leverage-based capital, r egulatory compliance was determined based on capital ratios calculated under the transitional rules until December 31, 2017. At September 30, 2018 and December 31, 2017 , the Firm’s risk-based capital ratios are based on the Standardized Approach rules . U.S. Bank Subsidiaries’ Regulatory Capital and Capital Ratios The OCC establishes capital requirements for our U.S. Bank Subsidiaries and evaluates their compliance with such capital requirements. Regulatory capital requirements for our U.S. Bank Subsidiaries are calculated in a similar manner to the Firm’s regulatory capital requirements, although G-SIB capital surcharge requirements do not apply to our U.S. Bank Subsidiaries. The OCC’s regulatory capital fram ework includes Prompt Corrective Acti on (“P CA”) standards, including “well- capitalized” PCA standards that are based on specified regulatory capital ratio minimums. For us to remain an FHC, our U.S. Ban k Subsidiaries must remain well- capitalized in accordance with the OCC’s PCA standards. In addition, failure by our U.S. Bank Subsidiaries to meet minimum capital requirements may result in certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on the U.S. Bank Subsidiaries’ and the Fir m’s financial statements. At September 30, 2018 and December 31, 2017 , the U.S. Bank Subsidiaries’ risk-based capital ratios are based on the Standardized Approach rules and exceeded well - capitalized requirements . MSBNA’s Regulatory Capital At September 30, 2018 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 6.5% $ 15,683 20.4% Tier 1 capital 8.0% 15,683 20.4% Total capital 10.0% 15,933 20.7% Leverage-based capital Tier 1 leverage 5.0% $ 15,683 10.9% SLR 2 6.0% 15,683 8.5% At December 31, 2017 $ in millions Required Ratio 1 Amount Ratio 3 Risk-based capital Common Equity Tier 1 capital 6.5% $ 15,196 20.5% Tier 1 capital 8.0% 15,196 20.5% Total capital 10.0% 15,454 20.8% Leverage-based capital Tier 1 leverage 5.0% $ 15,196 11.8% MSPBNA’s Regulatory Capital At September 30, 2018 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 6.5% $ 6,841 25.0% Tier 1 capital 8.0% 6,841 25.0% Total capital 10.0% 6,886 25.1% Leverage-based capital Tier 1 leverage 5.0% $ 6,841 9.7% SLR 2 6.0% 6,841 9.4% At December 31, 2017 $ in millions Required Ratio 1 Amount Ratio 3 Risk-based capital Common Equity Tier 1 capital 6.5% $ 6,215 24.4% Tier 1 capital 8.0% 6,215 24.4% Total capital 10.0% 6,258 24.6% Leverage-based capital Tier 1 leverage 5.0% $ 6,215 9.7% 1. Ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. 2. The SLR became effective as a capital standard on January 1, 2018. 3. For risk- and leverage-based capital, r egulatory compliance was determined based on capital ratios calculated under the transitional rules until December 31, 2017 . U.S. Broker-Dealer Regulatory Capital Requirements MS&Co. Regulatory Capital $ in millions At September 30, 2018 At December 31, 2017 Net capital $ 12,627 $ 10,142 Excess net capital 10,253 8,018 MS&Co. is a registered U.S. broker-dealer and registered futures commission merchant and, accordingly, is subject to the minimum net capital requirements of the SEC and the CFTC. MS&Co . has consistently operated with capital in excess of its regulatory capital requirements. As an Alternative Net Capital broker- dealer, and in accordance with the market and credit risk standards of Appendix 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, 2018 and December 31, 2017 , MS&Co. has exceeded its net capital requirement and has tentative net capital in excess of the minimum and notification r equirements . MSSB LLC Regulatory Capital $ in millions At September 30, 2018 At December 31, 2017 Net capital $ 3,030 $ 2,567 Excess net capital 2,864 2,400 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 MSIP, a London-based broker-dealer subsidiary, is subject to the capital requirements of the PRA, and MSMS, a Tokyo-based broker-dealer subsidiary, is subject to the capital requirements of the Financial Services Agency. MSIP and MSMS have consistently operated with capital in excess of their respective regulatory capital requirements. Certain other U.S. and non-U.S. subsidiaries of the Firm are subject to various securities, commodities and banking regulations, and capit al adequacy requirements promulgated by the regulatory and exchange authorities of the countries in which they operate. These subsidiaries have consistently operated with capital in excess of their local capital adequacy requirements. |
Total Equity
Total Equity | 9 Months Ended |
Sep. 30, 2018 | |
Total Equity | |
Total Equity | 14 . Total Equi ty Share Repurchases Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Repurchases of common stock under the Firm's share repurchase program $ 1,180 $ 1,250 $ 3,680 $ 2,500 The Firm’s 2018 Capital Plan (“Capital Plan”) includes the share repurchase of up to $ 4.7 billion of outstanding common stock for the period beginning July 1, 2018 through June 30, 2019 . Additionally, the Capital Plan includes quarterly common stock dividends of up to $ 0.30 per share. On April 18, 2018, the Firm entered into a sales plan with MUFG whereby MUFG sells shares of the Firm’s common stock to the Firm, as part of the Firm’s share repurchase program. The sales plan is only intended to maintain MUFG’s ownership percentage below 24.9% in order to comply with MUFG’s passivity commitments to the Board of Governors of the Federal Reserve System and will have no impact on the strategic alliance be tween MUFG and the Firm, including the joint ventures in Japan. Preferred Stock Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Dividends declared $ 93 $ 93 $ 356 $ 353 F or a description of Series A through Series K preferred stock issuances, see Note 15 to the financial statements in the 201 7 F orm 10-K. The Firm is authorized to issue 30 million shares of preferred stock. The preferred stock has a preference over the common stock upon liquidation. The Firm’s preferred stock qualifies as Tier 1 capital in accordance with regulatory capital requirements (see Note 13 ). Preferred Stock Outstanding Shares Outstanding Carrying Value At Liquidation At At $ in millions, except per share data September 30, Preference September 30, December 31, 2018 per Share 2018 2017 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 1,000 Total $ 8,520 $ 8,520 1. Series C is composed of the issuance of 1,160,791 shares of Series C Preferred Stock to MUFG for an aggregate purchase price of $ 911 million, less the redemption of 640,909 shares of Series C Preferred Stock of $ 503 million, which were converted to common shares of approximately $ 705 million. Comprehe nsive Income (Loss ) Accumulated Other Comprehensive Income (Loss) 1 $ in millions Foreign Currency Translation Adjustments AFS Securities Pension, Postretirement and Other DVA Total June 30, 2018 $ (864) $ (1,194) $ (704) $ (308) $ (3,070) OCI during the period (54) (171) 5 (709) (929) September 30, 2018 $ (918) $ (1,365) $ (699) $ (1,017) $ (3,999) 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) December 31, 2017 $ (767) $ (547) $ (591) $ (1,155) $ (3,060) Cumulative adjustment for accounting changes 2 (8) (111) (124) (194) (437) OCI during the period (143) (707) 16 332 (502) September 30, 2018 $ (918) $ (1,365) $ (699) $ (1,017) $ (3,999) 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) 1. Amounts net of tax and noncontrolling interests. 2. The cumulative adjustment for accounting change s is primarily the effect of the adoption of the accounting update Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This adjustment was recorded as of January 1, 2018 to reclassify certain income tax effects related to enactment of the Tax Act from AOCI to Retained earnings, primarily related to the remeasurement of deferred tax assets and liabilities resulting from the reduction in corporate income tax rate to 21%. See Note 2 for further information. Components of Period Changes in OCI Three Months Ended September 30, 2018 $ in millions Pre-tax Gain (Loss) Income Tax Benefit (Provision) After-tax Gain (Loss) Non-controlling Interests Net Foreign currency translation adjustments OCI activity $ (44) $ (35) $ (79) $ (25) $ (54) Reclassified to earnings — — — — — Net OCI $ (44) $ (35) $ (79) $ (25) $ (54) Change in net unrealized gains (losses) on AFS securities OCI activity $ (219) $ 51 $ (168) $ — $ (168) Reclassified to earnings (5) 2 (3) — (3) Net OCI $ (224) $ 53 $ (171) $ — $ (171) Pension, postretirement and other OCI activity $ — $ — $ — $ — $ — Reclassified to earnings 7 (2) 5 — 5 Net OCI $ 7 $ (2) $ 5 $ — $ 5 Change in net DVA OCI activity $ (1,018) $ 248 $ (770) $ (34) $ (736) Reclassified to earnings 36 (9) 27 — 27 Net OCI $ (982) $ 239 $ (743) $ (34) $ (709) 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 (11) 4 (7) — (7) Net OCI $ 41 $ (15) $ 26 $ — $ 26 Pension, postretirement and other OCI activity $ — $ — $ — $ — $ — Reclassified to earnings 1 (1) — — — Net OCI $ 1 $ (1) $ — $ — $ — Change in net DVA OCI activity $ (220) $ 77 $ (143) $ (6) $ (137) Reclassified to earnings (9) 3 (6) — (6) Net OCI $ (229) $ 80 $ (149) $ (6) $ (143) Nine Months Ended September 30, 2018 1 $ in millions Pre-tax Gain (Loss) Income Tax Benefit (Provision) After-tax Gain (Loss) Non-controlling Interests Net Foreign currency translation adjustments OCI activity $ (52) $ (102) $ (154) $ (11) $ (143) Reclassified to earnings — — — — — Net OCI $ (52) $ (102) $ (154) $ (11) $ (143) Change in net unrealized gains (losses) on AFS securities OCI activity $ (916) $ 215 $ (701) $ — $ (701) Reclassified to earnings (8) 2 (6) — (6) Net OCI $ (924) $ 217 $ (707) $ — $ (707) Pension, postretirement and other OCI activity $ 2 $ — $ 2 $ — $ 2 Reclassified to earnings 19 (5) 14 — 14 Net OCI $ 21 $ (5) $ 16 $ — $ 16 Change in net DVA OCI activity $ 403 $ (97) $ 306 $ 15 $ 291 Reclassified to earnings 54 (13) 41 — 41 Net OCI $ 457 $ (110) $ 347 $ 15 $ 332 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 (27) 10 (17) — (17) Net OCI $ 347 $ (129) $ 218 $ — $ 218 Pension, postretirement and other OCI activity $ 3 $ — $ 3 $ — $ 3 Reclassified to earnings 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 — — — Net OCI $ (499) $ 176 $ (323) $ (9) $ (314) 1. Exclusive of 2018 cumulative adjustments related to the adoption of certain accounting updates in the current year period. Refer to the table below and Note 2 for further information. Cumulative Adjustments to Retained Earnings Related to Adoption of Accounting Updates Nine Months Ended $ in millions September 30, 2018 Revenue from contracts with customers $ (32) Derivatives and hedging‒targeted improvements to accounting for hedging activities (99) Reclassification of certain tax effects from AOCI 443 Other 1 (6) Total $ 306 Nine Months Ended $ in millions September 30, 2017 Improvements to employee share-based payment accounting 2 (30) Intra-entity transfers of assets other than inventory (5) Total $ (35) 1. Other includes the adoption of accounting updates related to Recognition and Measurement of Financial Assets and Financial Liabilities (other than the provision around presentin g unrealized DVA in OCI which the Firm early adopted in 2016) and Derecognition of Nonfinancial Assets . The impact of these adoptions on Retained earnings was not significant. 2. See Note 2 to the 2017 Form 10-K for further information. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 15 . Earnings per Common Shar e Calculation of Basic and Diluted EPS Three Months Ended Nine Months Ended September 30, September 30, in millions, except for per share data 2018 2017 2018 2017 Basic EPS Income from continuing operations $ 2,155 $ 1,785 $ 7,330 $ 5,574 Income (loss) from discontinued operations (1) 6 (5) (21) Net income 2,154 1,791 7,325 5,553 Net income applicable to noncontrolling interests 42 10 108 85 Net income applicable to Morgan Stanley 2,112 1,781 7,217 5,468 Preferred stock dividends and other 93 93 356 353 Earnings applicable to Morgan Stanley common shareholders $ 2,019 $ 1,688 $ 6,861 $ 5,115 Weighted average common shares outstanding 1,697 1,776 1,719 1,789 Earnings per basic common share Income from continuing operations $ 1.19 $ 0.95 $ 3.99 $ 2.87 Income (loss) from discontinued operations — — — (0.01) Earnings per basic common share $ 1.19 $ 0.95 $ 3.99 $ 2.86 Diluted EPS Earnings applicable to Morgan Stanley common shareholders $ 2,019 $ 1,688 $ 6,861 $ 5,115 Weighted average common shares outstanding 1,697 1,776 1,719 1,789 Effect of dilutive securities: Stock options and RSUs 30 42 30 41 Weighted average common shares outstanding and common stock equivalents 1,727 1,818 1,749 1,830 Earnings per diluted common share Income from continuing operations $ 1.17 $ 0.93 $ 3.92 $ 2.81 Income (loss) from discontinued operations — — — (0.02) Earnings per diluted common share $ 1.17 $ 0.93 $ 3.92 $ 2.79 Weighted average antidilutive RSUs and stock options (excluded from the computation of diluted EPS) 1 — 1 — |
Interest Income and Interest Ex
Interest Income and Interest Expense | 9 Months Ended |
Sep. 30, 2018 | |
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 2018 2017 2018 2017 Interest income Investment securities $ 440 $ 313 $ 1,281 $ 943 Loans 1,085 853 3,097 2,399 Securities purchased under agreements to resell and Securities borrowed 1 575 76 1,156 86 Trading assets, net of Trading liabilities 571 506 1,687 1,461 Customer receivables and Other 2 956 592 2,560 1,522 Total interest income $ 3,627 $ 2,340 $ 9,781 $ 6,411 Interest expense Deposits $ 377 $ 63 $ 809 $ 88 Borrowings 1,287 1,109 3,683 3,197 Securities sold under agreements to repurchase and Securities loaned 3 478 325 1,326 912 Customer payables and Other 4 549 60 1,146 (91) Total interest expense $ 2,691 $ 1,557 $ 6,964 $ 4,106 Net interest $ 936 $ 783 $ 2,817 $ 2,305 1. Includes fees paid on Securities borrowed . 2 . Inclu des interest from Customer receivables and Cash and cash equivalents . 3 . Includes fees received on Securities loaned. 4 . Includes fees received from prime brokerage customers for stock loan transactions incurred to cover customers’ short positions. Interest income and Interest expense are classified in the income statements based on the nature of the instrument and related market conventions. When included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2018 | |
Employee Benefit Plans | |
Employee Benefit Plans | 17 . Employee Benefit Plans The Firm sponsors various retirement plans for the majority of its U.S. employees. The Firm provides certain other postretirement benefits, primarily health care and life insurance, to eligible U.S. employees. Components of Net Periodic Benefit Expense (Income) for Pension and Other Postretirement Plans Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Service cost, benefits earned during the period $ 4 $ 4 $ 12 $ 12 Interest cost on projected benefit obligation 34 37 103 112 Expected return on plan assets (29) (29) (85) (87) Net amortization of prior service credit (1) (4) (1) (12) Net amortization of actuarial loss 8 4 20 12 Net periodic benefit expense (income) $ 16 $ 12 $ 49 $ 37 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Taxes | |
Income Taxes | 18 . Income Taxes The Firm is under continuous examination by the IRS and other tax authorities in certain countries, such as Japan and the U.K., and in states in which it has significant business operations, such as New York. The Firm 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 i s 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 2009-201 6 an d 2007-2014, respectively. The Firm believes that the resolution of the above tax matters will not have a material effect on the annual financial statements, although a resolutio n could have a material impact i n the income statements and effective tax rate for any period in which s uch resolution occurs. Furthermore, by the end of the first quarter of 2018 , the Firm reached a conclusion with the U.K. tax authorities on certain issues through tax year 2010, the resolution of which did not have a material impact on the financial state ments or effective tax rate. See Note 1 1 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 ma y impact the balance of unrecognized tax benefits . It is reasonably possible that significant changes in the balance of unrecognized tax benefits occur within the next 12 months. At this time, however, it is not possible to reasonably estimate the expecte d change to the total amount of unrecognized tax benefits and the impact on the Firm’s effective tax rate over the next 12 months. The Firm’s effective tax rate for the current year period includes recurring-type discrete tax benefits associated with empl oyee share-based payments of $ 164 million. Additionally, as a result of new information pertaining to the resolution of multi-jurisdiction tax examinations and other matters , the Firm’s effective tax rate for the current year period includes intermittent n et discrete tax benefits of $ 92 million with a corresponding reduction in the total amount of gross unrecognized tax benefits (excluding federal benefit of state items, competent authority and foreign tax credit offsets) of approximately $ 430 million. |
Segment, Geographic and Revenue
Segment, Geographic and Revenue Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 19 . Segment , Geographic and Revenue Information Segment Information For a discussion about the Firm’s business segments, see Note 21 to the financial statements in the 2017 Form 10-K . Selected Financial Information by Business Segment Three Months Ended September 30, 2018 $ in millions IS WM IM I/E Total Investment banking 1, 2 $ 1,459 $ 129 $ — $ (21) $ 1,567 Trading 2,573 160 2 17 2,752 Investments 96 — 40 — 136 Commissions and fees 1 589 409 — (66) 932 Asset management 1 112 2,573 604 (38) 3,251 Other 244 58 (3) (1) 298 Total non-interest revenues 3, 4 5,073 3,329 643 (109) 8,936 Interest income 2,425 1,412 19 (229) 3,627 Interest expense 2,569 342 9 (229) 2,691 Net interest (144) 1,070 10 — 936 Net revenues $ 4,929 $ 4,399 $ 653 $ (109) $ 9,872 Income from continuing operations before income taxes $ 1,556 $ 1,194 $ 102 $ (1) $ 2,851 Provision for income taxes 397 281 18 — 696 Income from continuing operations 1,159 913 84 (1) 2,155 Income (loss) from discontinued operations, net of income taxes (3) — 2 — (1) Net income 1,156 913 86 (1) 2,154 Net income applicable to noncontrolling interests 36 — 6 — 42 Net income applicable to Morgan Stanley $ 1,120 $ 913 $ 80 $ (1) $ 2,112 Three Months Ended September 30, 2017 $ in millions IS WM IM I/E Total Investment banking $ 1,270 $ 125 $ — $ (15) $ 1,380 Trading 2,504 212 (7) (5) 2,704 Investments 52 1 114 — 167 Commissions and fees 561 402 — (26) 937 Asset management 88 2,393 568 (23) 3,026 Other 143 62 1 (6) 200 Total non-interest revenues 4,618 3,195 676 (75) 8,414 Interest income 1,421 1,155 1 (237) 2,340 Interest expense 1,663 130 2 (238) 1,557 Net interest (242) 1,025 (1) 1 783 Net revenues $ 4,376 $ 4,220 $ 675 $ (74) $ 9,197 Income from continuing operations before income taxes $ 1,236 $ 1,119 $ 131 $ (4) $ 2,482 Provision for income taxes 260 421 16 — 697 Income from continuing operations 976 698 115 (4) 1,785 Income (loss) from discontinued operations, net of income taxes 6 — — — 6 Net income 982 698 115 (4) 1,791 Net income applicable to noncontrolling interests 9 — 1 — 10 Net income applicable to Morgan Stanley $ 973 $ 698 $ 114 $ (4) $ 1,781 Nine Months Ended September 30, 2018 $ in millions IS WM IM I/E Total Investment banking 1, 2 $ 4,671 $ 383 $ — $ (60) $ 4,994 Trading 9,344 404 23 44 9,815 Investments 234 3 172 — 409 Commissions and fees 1 2,007 1,349 — (212) 3,144 Asset management 1 324 7,582 1,840 (114) 9,632 Other 548 195 10 (5) 748 Total non-interest revenues 3, 4 17,128 9,916 2,045 (347) 28,742 Interest income 6,424 4,012 37 (692) 9,781 Interest expense 6,809 830 20 (695) 6,964 Net interest (385) 3,182 17 3 2,817 Net revenues $ 16,743 $ 13,098 $ 2,062 $ (344) $ 31,559 Income from continuing operations before income taxes $ 5,480 $ 3,511 $ 390 $ (1) $ 9,380 Provision for income taxes 1,169 808 73 — 2,050 Income from continuing operations 4,311 2,703 317 (1) 7,330 Income (loss) from discontinued operations, net of income taxes (7) — 2 — (5) Net income 4,304 2,703 319 (1) 7,325 Net income applicable to noncontrolling interests 100 — 8 — 108 Net income applicable to Morgan Stanley $ 4,204 $ 2,703 $ 311 $ (1) $ 7,217 Nine Months Ended September 30, 2017 $ in millions IS WM IM I/E Total Investment banking $ 4,100 $ 405 $ — $ (50) $ 4,455 Trading 8,241 657 (21) (7) 8,870 Investments 155 3 337 — 495 Commissions and fees 1,811 1,266 — (80) 2,997 Asset management 268 6,879 1,624 (76) 8,695 Other 442 191 9 (14) 628 Total non-interest revenues 15,017 9,401 1,949 (227) 26,140 Interest income 3,788 3,348 3 (728) 6,411 Interest expense 4,515 320 3 (732) 4,106 Net interest (727) 3,028 — 4 2,305 Net revenues $ 14,290 $ 12,429 $ 1,949 $ (223) $ 28,445 Income from continuing operations before income taxes $ 4,409 $ 3,149 $ 376 $ (2) $ 7,932 Provision for income taxes 1,132 1,139 87 — 2,358 Income from continuing operations 3,277 2,010 289 (2) 5,574 Income (loss) from discontinued operations, net of income taxes (21) — — — (21) Net income 3,256 2,010 289 (2) 5,553 Net income applicable to noncontrolling interests 77 — 8 — 85 Net income applicable to Morgan Stanley $ 3,179 $ 2,010 $ 281 $ (2) $ 5,468 I/E–Intersegment Eliminations 1. Approximately 85 % of Investment banking revenues and substantially all of Commissions and fees and Asset management revenues in the current quarter and current year period were determined under the Revenues from Contracts with Customers accounting update. 2. Current quarter Institutional Securities Investment b anking revenues are composed of $ 510 million of Advisory and $ 949 million of Underwriting revenues. Current year period Institutional Securities Investment banking revenues are composed of $ 1,702 million of Advisory and $ 2,969 million of Underwriting revenues. 3. The Firm enters into certain contracts which contain a current obligation to perform services in th e future. Excluding contracts where billing is commensurate with the value of the services performed at each stage of the contract, contracts with variable consideration that is subject to reversal, and contracts with less than one year duration, we expect to record t he following approximate revenues in the future: $ 25 million in the remainder of 2018; $ 100 million per year over the next t wo years; and between $ 10 million and $ 50 million per year thereafter through 2035 . These revenues are primarily related to certain commodities contracts with customers. 4. Includes $ 804 million and $ 2,192 million in r evenue recognized in the current quarter and current year period, respectively, where some or all services were performed in prior periods . This amount is pri marily composed of investment banking advisory fees, and distribution fees. Total Assets by Business Segment At At September 30, December 31, $ in millions 2018 2017 Institutional Securities $ 671,508 $ 664,974 Wealth Management 188,166 182,009 Investment Management 5,843 4,750 Total 1 $ 865,517 $ 851,733 1. Parent assets have been fully a llocated to the business segments. Additional Segment Information — Investment Management Net Unrealized Performance-based Fees At At September 30, December 31, $ in millions 2018 2017 Net cumulative unrealized performance-based fees at risk of reversing $ 406 $ 442 The Firm’ s portion of net cumulative unrealized 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 distributions previously received . Reduction of Fees due to Fee Waivers Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Fee waivers $ 11 $ 20 $ 45 $ 66 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. Geographic Information For a discussion about the Firm’s geographic net revenues, see Note 21 to the financial statements in the 2017 Form 10-K. Net Revenues by Region Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Americas $ 7,357 $ 6,833 $ 22,989 $ 20,667 EMEA 1,355 1,325 4,892 4,420 Asia 1,160 1,039 3,678 3,358 Total $ 9,872 $ 9,197 $ 31,559 $ 28,445 Revenue Information Trading Revenues by Product Type Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Interest rate contracts $ 744 $ 648 $ 2,396 $ 1,693 Foreign exchange contracts 223 181 622 613 Equity security and index contracts 1 1,432 1,416 5,094 4,875 Commodity and other contracts 254 223 1,047 522 Credit contracts 99 236 656 1,167 Total $ 2,752 $ 2,704 $ 9,815 $ 8,870 1. Dividend income is inclu ded 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 ac ross a variety of product types in connection with its market-making and related risk management strategies. The trading revenues presented in the table are not representative of the manner in which the Firm manages its business activities and are prepared in a manner similar to the presentation of trading revenues for regulatory reporting purposes. Change in Revenue and Expense as a Result of Application of the New Revenue Recognition Standard Three Nine Months Ended Months Ended $ in millions September 30, 2018 September 30, 2018 Gross presentation impact—Revenue Investment banking— Advisory $ 12 $ 56 Underwriting 59 161 Asset management 8 22 Other 14 41 Subtotal 93 280 Gross presentation impact—Expense Brokerage, clearing and exchange fees $ 8 $ 22 Marketing and business development 8 20 Professional services 39 93 Other 1 38 145 Subtotal 93 280 Timing impact—Revenue Investment banking— Advisory (2) 13 Asset management (15) (31) Other 5 10 Subtotal (12) (8) Net change in revenue and expense $ (12) $ (8) 1. Primarily composed of Investment banking transa ction-related costs. As a result of adopting the accounting update Revenue from Contracts with Customers , the accounting for certain transactions has changed (see Note 2 for further details). As summarized in the previous table, the change is composed of transactions which are now presented on a gross basis within both Non-interest revenues and Non-interest expenses as we ll as transactions where revenues are recognized with different timing compared to the previous GAAP. For example, timing impacts shown as negative amounts in the previous table represent revenues for which recognition has been deferred to fut ure periods under the new standard . Receivables from Contracts with Customers At At September 30, January 1, $ in millions 2018 2018 Customer and other receivables $ 2,418 $ 2,805 Receivables from contracts with customers, which are included within Customer and other receivables i n the balance sheets, arise when the Firm has both recorded revenues and has the right per the contract to bill customers. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
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 disclosable events not otherwise reported in these financial statements or the notes thereto . |
Significant Accounting Polici_2
Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
Significant Accounting Policies | |
Revenue Recognition | Revenue Recognition Revenues are recognized when the promised goods or services are delivered to our customers, in an amount that is based on the consideration the Firm expects to receive in exchange for those goods or services when such amounts are not probable of significant reversal. ● Investment Bankin g Revenue from investment banking activities consists of revenues earned from underwriting primarily equity and fixed income securities and advisory fees for mergers, acquisitions, restructuring and advisory assignments. Underwriting revenues are generally recognized on trade date if there is no uncertainty or contingency related to the amount to be paid. Underwriting costs are deferred and recognized in the relevant non- interest expense s line items when the related underwriting revenues are record ed. Advisory fees are recognized as advice is provided to the client, based on the estimated progress of work and when the revenue is not probable of a significant reversal. Advisory costs are recognized as incurred in the relevant non- interest expense s line items, including when reimbursed. ● Commissions and Fees Commission and fee revenues result from transaction-based arrangements in which the client is charged a fee for the execution of transactions. Such revenues primarily arise from transactions in equity securities; services related to sales and trading activities; and sales of mutual funds, alternative funds, futures, insurance products and options. Commission and fee revenues are recognized on trade date when the perfo rmance obligation is satisfied. ● Asset Management Revenues Asset management, distribution and administration fees are generally based on related asset levels being managed, such as t he AUM of a customer’s account, or the net asset value of a fund. These fees are generally recognized when services are performed and the fees become known. Management fees are reduced by estimated fee waivers and expense caps, if any, provided to the cust omer. Performance-based fees not in the form of carried interest are recorded when the annual performance target is met and the revenue is not probable of a significant reversal. Performance-based fees in the form of carried interest are considered equit y method investments and are therefore outside the scope of these policies for revenue from contracts with customers. Sales commissions paid by the Firm in connection with the sale of certain classes of shares of its open-end mutual fund products are a ccounted for as deferred commission assets and amortized to expense over the expected life of the contract. The Firm periodically tests deferred commission assets for recoverability based on cash flows expected to be received in future periods. Other asset management and distribution costs are recognized as incurred in the relevant non- interest expense s line items. ● Other Items Revenue from commodities-related contracts is recognized as the promised goods or services are delivered to the customer. Rece ivables from contracts with customers are recognized in Customer and other receivables in the balance sheets when the underlying performance obligations have been satisfied and the Firm has the right per the contract to bill the customer. Contract assets a re recognized in Other assets when the Firm has satisfied its performance obligations, but customer payment is conditional. Contract liabilities are recognized in Other liabilities when the Firm has collected payment from a customer based on the terms of t he contract, but the underlying performance obligations are not yet satisfied. For contracts with a term less than one year, incremental costs to obtain the contract are expensed as incurred. Revenues are not discounted when payment is expected within o ne year. The Firm presents, net within revenues, all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Firm from a customer . |
Accounting Standards Adopted | Accounting Updates Adopted The Firm adopted the following accounting updates in the current year period . Prior period results are presented under previous policies. See Note 14 for a summary of the Retained earnings impacts of these and ot her minor adoptions effective in the current year period . Revenue from Contracts with Customers On January 1, 2018, we adopted Revenue from Contracts with Customers using the modified retrospective method, which resulted in a net decrease to Retained ear nings of $ 32 million, net of tax. Prior period amounts were not restated. Our revised accounting policy in accordance with this adoption is effective January 1, 2018, and is discussed below. Revenue Recognition Revenues are recognized when the promised goods or services are delivered to our customers, in an amount that is based on the consideration the Firm expects to receive in exchange for those goods or services when such amounts are not probable of significant reversal. ● Investment Bankin g Revenue from investment banking activities consists of revenues earned from underwriting primarily equity and fixed income securities and advisory fees for mergers, acquisitions, restructuring and advisory assignments. Underwriting revenues are generally recognized on trade date if there is no uncertainty or contingency related to the amount to be paid. Underwriting costs are deferred and recognized in the relevant non- interest expense s line items when the related underwriting revenues are record ed. Advisory fees are recognized as advice is provided to the client, based on the estimated progress of work and when the revenue is not probable of a significant reversal. Advisory costs are recognized as incurred in the relevant non- interest expense s line items, including when reimbursed. ● Commissions and Fees Commission and fee revenues result from transaction-based arrangements in which the client is charged a fee for the execution of transactions. Such revenues primarily arise from transactions in equity securities; services related to sales and trading activities; and sales of mutual funds, alternative funds, futures, insurance products and options. Commission and fee revenues are recognized on trade date when the perfo rmance obligation is satisfied. ● Asset Management Revenues Asset management, distribution and administration fees are generally based on related asset levels being managed, such as t he AUM of a customer’s account, or the net asset value of a fund. These fees are generally recognized when services are performed and the fees become known. Management fees are reduced by estimated fee waivers and expense caps, if any, provided to the cust omer. Performance-based fees not in the form of carried interest are recorded when the annual performance target is met and the revenue is not probable of a significant reversal. Performance-based fees in the form of carried interest are considered equit y method investments and are therefore outside the scope of these policies for revenue from contracts with customers. Sales commissions paid by the Firm in connection with the sale of certain classes of shares of its open-end mutual fund products are a ccounted for as deferred commission assets and amortized to expense over the expected life of the contract. The Firm periodically tests deferred commission assets for recoverability based on cash flows expected to be received in future periods. Other asset management and distribution costs are recognized as incurred in the relevant non- interest expense s line items. ● Other Items Revenue from commodities-related contracts is recognized as the promised goods or services are delivered to the customer. Rece ivables from contracts with customers are recognized in Customer and other receivables in the balance sheets when the underlying performance obligations have been satisfied and the Firm has the right per the contract to bill the customer. Contract assets a re recognized in Other assets when the Firm has satisfied its performance obligations, but customer payment is conditional. Contract liabilities are recognized in Other liabilities when the Firm has collected payment from a customer based on the terms of t he contract, but the underlying performance obligations are not yet satisfied. For contracts with a term less than one year, incremental costs to obtain the contract are expensed as incurred. Revenues are not discounted when payment is expected within o ne year. The Firm presents, net within revenues, all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Firm from a customer . Derivatives and Hedging–Targeted Improvements to Accounting for Hedging Activities This accounting update aims to better align the hedge accounting requirements with an entity’s risk management strategies and improve the financial reporting of hedging relationships. It also results in simplification of the application of hedge accounting related to the assessment of hedge effectiveness. The Firm early adopted this accounting update in the first quarter of 2018. Upon adoption, the Firm recorded a cumul ative catch-up adjustment, decreasing Retained earnings by $ 99 million, net of tax. This adjustment represents the cumulative effect of applying the new rules from the inception of certain fair value hedges of the interest rate risk of our borrowings, in p articular the provision allowing only the benchmark rate component of coupon cash flows to be hedged. Effective January 1, 2018, in accordance with this adoption, t he Firm has updated its accounting policies to permit the hedged item in a fair value hedge of interest rate risk to be defined as including only the benchmark rate component of contractual coupon cash flows, and to allow for hedging part of the contractual term of the hedged instrument. The accounting policy also requires the entire gain or los s from revaluing hedges of net investments in foreign operations at the spot rate to be reported within AOCI. In the current quarter, the Firm began designating interest rate swaps as fair value hedges of changes in the benchmark interest rate of certain AFS securities . Consistent with the Firm’s existing fair value hedges of borrowings, the Firm uses regression analysis to perform an ongoing prospective and retrospective assessment of the effectiveness of these hedging relationships. For qualifying fair value hedges of benchmark interest rates, the changes in the fair value of the derivative and the changes in the fair value of the hedged asset due to changes in the benchmark interest rate provide an offset of one another and are recorded in Interest inc ome. When a derivative is de-designated as a hedge, any basis adjustment remaining on the hedged asset is amortized to Interest income over the remaining life of the asset using the effective interest method. Reclassification of Certain Tax Effects from A ccumulated Other Comprehensive Income This accounting update, which the Firm elected to early adopt as of January 1, 2018, allows companies to reclassify from AOCI to Retained earnings the stranded tax effects associated with enactment of the Tax Act on D ecember 22, 2017. These stranded tax effects resulted from the requirement to reflect the total amount of the remeasurement of and other adjustments to deferred tax assets and liabilities in 2017 in income from continuing operations, regardless of whether the deferred taxes were originally recorded in AOCI. Accordingly, as of January 1, 2018, the Firm recorded a net increase to Retained earnings as a result of the reclassification of $ 443 million of such stranded tax effects previously recorded in AOCI, whi ch were primarily the result of the remeasurement of deferred tax assets and liabilities associated with the change in tax rates. Aside from the above treatment related to the Tax Act, the Firm releases stranded tax effects from AOCI into earnings once t he related category of instruments or transactions giving rise to these effects no longer exists . For further detail on the tax effects reclassified, refer to Note 14 to the financial statements. |
Goodwill | Goodwill The Firm completed its annual goodwill impairment testing as of July 1, 2018. 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 i ts carrying value. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at fair value Trading assets: U.S. Treasury and agency securities $ 25,578 $ 24,183 $ 5 $ — $ 49,766 Other sovereign government obligations 26,698 5,016 36 — 31,750 State and municipal securities — 3,002 4 — 3,006 MABS — 2,652 316 — 2,968 Loans and lending commitments 2 — 6,031 6,735 — 12,766 Corporate and other debt — 21,722 710 — 22,432 Corporate equities 3 125,028 413 106 — 125,547 Derivative and other contracts: Interest rate 1,883 156,753 1,029 — 159,665 Credit — 5,740 416 — 6,156 Foreign exchange 72 63,647 10 — 63,729 Equity 3,206 45,505 1,207 — 49,918 Commodity and Other 519 7,105 3,487 — 11,111 Netting 1 (4,417) (208,658) (1,003) (45,862) (259,940) Total derivative and other contracts 1,263 70,092 5,146 (45,862) 30,639 Investments 4 603 255 818 — 1,676 Physical commodities — 226 — — 226 Total trading assets 4 179,170 133,592 13,876 (45,862) 280,776 Investment securities— AFS 32,846 24,386 — — 57,232 Intangible assets — 3 — — 3 Total assets at fair value $ 212,016 $ 157,981 $ 13,876 $ (45,862) $ 338,011 At September 30, 2018 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at fair value Deposits $ — $ 309 $ 73 $ — $ 382 Trading liabilities: U.S. Treasury and agency securities 14,169 245 — — 14,414 Other sovereign government obligations 18,779 1,770 — — 20,549 Corporate and other debt — 8,421 1 — 8,422 Corporate equities 3 59,630 178 13 — 59,821 Derivative and other contracts: Interest rate 1,860 141,016 452 — 143,328 Credit — 6,156 395 — 6,551 Foreign exchange 12 61,662 54 — 61,728 Equity 3,070 45,439 2,878 — 51,387 Commodity and other 659 8,255 1,467 — 10,381 Netting 1 (4,417) (208,658) (1,003) (33,471) (247,549) Total derivative and other contracts 1,184 53,870 4,243 (33,471) 25,826 Total trading liabilities 93,762 64,484 4,257 (33,471) 129,032 Securities sold under agreements to repurchase — 784 — — 784 Other secured financings — 4,382 172 — 4,554 Borrowings — 46,886 3,620 — 50,506 Total liabilities at fair value $ 93,762 $ 116,845 $ 8,122 $ (33,471) $ 185,258 At December 31, 2017 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at fair value Trading assets: U.S. Treasury and agency securities $ 22,077 $ 26,888 $ — $ — $ 48,965 Other sovereign government obligations 20,234 7,825 1 — 28,060 State and municipal securities — 3,592 8 — 3,600 MABS — 2,364 423 — 2,787 Loans and lending commitments 2 — 4,791 5,945 — 10,736 Corporate and other debt — 16,837 701 — 17,538 Corporate equities 3 149,697 492 166 — 150,355 Derivative and other contracts: Interest rate 472 178,704 1,763 — 180,939 Credit — 7,602 420 — 8,022 Foreign exchange 58 53,724 15 — 53,797 Equity 1,101 40,359 3,530 — 44,990 Commodity and other 1,126 5,390 4,147 — 10,663 Netting 1 (2,088) (216,764) (1,575) (47,171) (267,598) Total derivative and other contracts 669 69,015 8,300 (47,171) 30,813 Investments 4 297 523 1,020 — 1,840 Physical commodities — 1,024 — — 1,024 Total trading assets 4 192,974 133,351 16,564 (47,171) 295,718 Investment securities— AFS 27,522 27,681 — — 55,203 Intangible assets — 3 — — 3 Total assets at fair value $ 220,496 $ 161,035 $ 16,564 $ (47,171) $ 350,924 At December 31, 2017 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at fair value Deposits $ — $ 157 $ 47 $ — $ 204 Trading liabilities: U.S. Treasury and agency securities 17,802 24 — — 17,826 Other sovereign government obligations 24,857 2,016 — — 26,873 Corporate and other debt — 7,141 3 — 7,144 Corporate equities 3 52,653 82 22 — 52,757 Derivative and other contracts: Interest rate 364 162,239 545 — 163,148 Credit — 8,166 379 — 8,545 Foreign exchange 23 55,118 127 — 55,268 Equity 1,001 44,666 2,322 — 47,989 Commodity and other 1,032 5,156 2,701 — 8,889 Netting 1 (2,088) (216,764) (1,575) (36,717) (257,144) Total derivative and other contracts 332 58,581 4,499 (36,717) 26,695 Total trading liabilities 95,644 67,844 4,524 (36,717) 131,295 Securities sold under agreements to repurchase — 650 150 — 800 Other secured financings — 3,624 239 — 3,863 Borrowings — 43,928 2,984 — 46,912 Total liabilities at fair value $ 95,644 $ 116,203 $ 7,944 $ (36,717) $ 183,074 MABS—Mortgage- and a sset-backed securities 1. For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Netting.” 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 . 2. For a further breakdown by type, see the following Loans and Lending Commitments at Fair Value table. 3. For trading purposes, the Firm holds or sells short equity securities issued by entities in diverse industries and of varying sizes. 4. Amounts exclude certain investments that are measured based on NA V per share, which are not classified in the fair value hierarchy. For additional disclos ure about such investments, see “Measured Based on Net Asset Value” herein. |
Loans and Lending Commitments at Fair Value | Loans and Lending Commitments at Fair Value At At September 30, December 31, $ in millions 2018 2017 Corporate $ 9,489 $ 8,358 Residential real estate 912 799 Wholesale real estate 2,365 1,579 Total $ 12,766 $ 10,736 |
Unsettled Fair Value of Futures Contracts | Unsettled Fair Value of Futures Contracts 1 At At September 30, December 31, $ in millions 2018 2017 Customer and other receivables, net $ 660 $ 831 1. These contracts are primarily Level 1, actively traded , valued based on quoted prices from the exchange and are excluded from the previous recurring fair value tables . |
Rollforward of 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, 2018 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at September 30, 2018 Unrealized Gains (Losses) Assets at Fair Value Trading assets: U.S. Treasury and agency securities $ — $ — $ 5 $ — $ — $ — $ 5 $ — Other sovereign government obligations 5 — 32 (2) — 1 36 — State and municipal securities 2 — 2 — — — 4 — MABS 327 (1) 23 (46) (14) 27 316 (8) Loans and lending commitments 6,923 17 2,076 (1,184) (777) (320) 6,735 12 Corporate and other debt 701 (4) 109 (153) (6) 63 710 9 Corporate equities 171 (7) 15 (50) — (23) 106 5 Net derivative and other contracts 3 : Interest rate 567 (3) 12 (9) (2) 12 577 24 Credit (2) (39) 4 — 58 — 21 (41) Foreign exchange (26) (35) — — 2 15 (44) (9) Equity (1,535) (149) 29 (138) 84 38 (1,671) (132) Commodity and other 2,032 (29) — (11) (1) 29 2,020 (105) Total net derivative and other contracts 1,036 (255) 45 (158) 141 94 903 (263) Investments 941 5 72 (103) — (97) 818 2 Liabilities at Fair Value Deposits $ 37 $ (2) $ — $ 11 $ — $ 23 $ 73 $ (2) Trading liabilities: Corporate and other debt 1 — — — — — 1 — Corporate equities 24 — (12) 3 — (2) 13 — Other secured financings 170 (2) — — — — 172 (2) Borrowings 3,295 (56) — 344 (81) 6 3,620 (55) 1. Loan originations and consolidations of VIEs are included in purchases and deconsolid ations of VIEs are included in S ettlements. 2. Amounts related to entering into Net derivatives and other contracts, Deposits, Other secured financings and B orrowings primarily represent issuances. Amounts for other line items primarily represent sales. 3. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Amounts are pr esented before counterparty netting. 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, 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) Assets at Fair Value Trading assets: Other sovereign government obligations $ 100 $ 2 $ 86 $ (82) $ — $ (2) $ 104 $ 1 State and municipal securities 9 — 4 (3) — — 10 — MABS 264 4 52 (54) — 8 274 1 Loans and lending commitments 4,864 25 1,772 (1,431) (236) (129) 4,865 17 Corporate and other debt 693 41 220 (241) (4) (21) 688 34 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 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) Borrowings 2,646 (53) — 679 (49) (726) 2,603 (47) 1. Loan originations and consolidations of VIEs are included in purchases and deconsolid ations of VIEs are included in S ettlements. 2. Amounts related to entering into Net derivatives and other contracts, Deposits, Other secured financings and B orrowings primarily represent issuances. Amounts for other line items primarily represent sales. 3. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Amounts are pr esented before counterparty netting. 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, 2017 Realized and Unrealized Gains (Losses) Purchases 1 Sales and Issuances 2 Settlements 1 Net Transfers Ending Balance at September 30, 2018 Unrealized Gains (Losses) Assets at fair value Trading assets: U.S. Treasury and agency securities $ — $ — $ 5 $ — $ — $ — $ 5 $ — Other sovereign government obligations 1 — 35 — — — 36 — State and municipal securities 8 — 3 (7) — — 4 — MABS 423 88 73 (317) (16) 65 316 (6) Loans and lending commitments 5,945 16 4,030 (978) (1,926) (352) 6,735 (8) Corporate and other debt 701 51 276 (227) (8) (83) 710 16 Corporate equities 166 17 69 (134) — (12) 106 14 Net derivative and other contracts 3 : Interest rate 1,218 (46) 84 (38) (92) (549) 577 (47) Credit 41 (17) 9 (40) 30 (2) 21 (20) Foreign exchange (112) 71 2 (48) 43 — (44) 1 Equity 4 1,208 83 120 (1,052) 319 (2,349) (1,671) 19 Commodity and other 1,446 332 80 (18) 17 163 2,020 33 Total net derivative and other contracts 3,801 423 295 (1,196) 317 (2,737) 903 (14) Investments 1,020 5 134 (209) — (132) 818 5 Liabilities at fair value Deposits $ 47 $ 1 $ — $ 27 $ (2) $ 2 $ 73 $ 1 Trading liabilities: Corporate and other debt 3 — (3) 1 — — 1 — Corporate equities 22 4 (12) 11 — (4) 13 4 Securities sold under agreements to repurchase 150 — — — — (150) — — Other secured financings 239 16 — 8 (18) (41) 172 16 Borrowings 2,984 156 — 1,275 (339) (144) 3,620 168 1. Loan originations and consolid ations of VIEs are included in P urchases and deconsolid ations of VIEs are included in S ettlements. 2. Amounts related to entering into Net derivative and other contracts, Deposits, Other secured financings and B orrowings primarily represent issuances. Amounts for other line items primarily represent sales. 3. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Amounts are pre sented before counterparty netting. 4. During the current year period, the Firm transferred from Level 3 to Level 2 $ 2.4 billion of Equity Derivatives due to a reduction in the significance of the unobservable inputs relating to volatility. 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, 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) 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 — State and municipal securities 250 3 6 (81) — (168) 10 — MABS 217 49 120 (120) (16) 24 274 13 Loans and lending commitments 5,122 88 2,470 (1,927) (964) 76 4,865 85 Corporate and other debt 475 67 437 (383) (7) 99 688 3 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) Trading liabilities: 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) Borrowings 2,014 (142) — 1,418 (328) (643) 2,603 (136) 1. Loan originations and consolidations of VIE s are included in P urchases and deconsolidations of VIE s are included in S ettlements. 2. Amounts related to entering into Net derivative and other contracts, Deposits, Other secured financings and B orrowings primarily represent issuances. Amounts for other line items primarily represent sales. 3. Net derivative and other contracts represent Trading assets—Derivative and other contracts, net of Trading liabilities—Derivative and other contracts . Amounts are presen ted before counterparty netting. |
Valuation Techniques and Sensitivity of Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements | Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements Recurring Fair Value Measurement Balance / Range (Average 1 ) $ in millions, except inputs At September 30, 2018 At December 31, 2017 Assets at Fair Value MABS $ 316 $ 423 Comparable pricing: Bond price 0 to 100 points (34 points) 0 to 95 points (26 points) Loans and lending commitments $ 6,735 $ 5,945 Margin loan model: Discount rate 1% to 6% (2%) 0% to 3% (1%) Volatility skew 14% to 59% (27%) 7% to 41% (22%) Comparable pricing: Loan price 56 to 105 points (97 points) 55 to 102 points (95 points) Corporate and other debt $ 710 $ 701 Comparable pricing: Bond price 0 to 100 points (62 points) 3 to 134 points (59 points) Discounted cash flow: Recovery rate 20% 6% to 36% (27%) Discount rate 15% to 25% (16%) 7% to 20% (14%) Option model: At the money volatility 23% to 51% (34%) 17% to 52% (52%) Corporate equities $ 106 $ 166 Comparable pricing: Equity price 100% 100% Net derivative and other contracts 2 : Interest rate $ 577 $ 1,218 Option model: IR volatility skew 27% to 95% (43% / 41%) 31% to 97% (41% / 47%) Inflation volatility 26% to 66% (46% / 43%) 23% to 63% (44% / 41%) IR curve 2% 2% Credit $ 21 $ 41 Comparable pricing: Cash synthetic basis 8 to 9 points (9 points) 12 to 13 points (12 points) Bond price 0 to 75 points (28 points) 0 to 75 points (25 points) Credit spread 195 to 474 bps (349 bps) N/M Correlation model: Credit correlation 35% to 74% (48%) 38% to 100% (48%) Foreign exchange 3 $ (44) $ (112) Option model: IR FX correlation 53% to 57% (55% / 55%) 54% to 57% (56% / 56%) IR volatility skew 27% to 95% (43% / 41%) 31% to 97% (41% / 47%) Contingency probability 85% to 95% (93% / 95%) 95% to 100% (96% / 95%) Equity 3 $ (1,671) $ 1,208 Option model: At the money volatility 12% to 56% (34%) 7% to 54% (32%) Volatility skew -2% to 0% (-1%) -5% to 0% (-1%) Equity correlation 5% to 99% (67%) 5% to 99% (76%) FX correlation -64% to 10% (-47%) -55% to 40% (36%) IR correlation -7% to 44% (15% / 10%) -7% to 49% (18% / 20%) Commodity and other $ 2,020 $ 1,446 Option model: Forward power price $3 to $169 ($30) per MWh $4 to $102 ($31) per MWh Commodity volatility 5% to 104% (15%) 7% to 205% (17%) Cross-commodity correlation 5% to 99% (92%) 5% to 99% (92%) Investments $ 818 $ 1,020 Discounted cash flow: WACC 8% to 15% (9%) 8% to 15% (9%) Exit multiple 7 to 10 times (10 times) 8 to 11 times (10 times) Market approach: EBITDA multiple 3 to 23 times (13 times) 6 to 25 times (11 times) Comparable pricing: Equity price 25% to 100% (95%) 45% to 100% (92%) Liabilities at Fair Value Deposits $ 73 $ 47 Option Model At the money volatility 17% to 38% (20%) N/M Volatility skew 0% N/M Other secured financings $ 172 $ 239 Discounted cash flow: Funding spread 60 to 260 bps (160 bps) 39 to 76 bps (57 bps) Option model: Volatility skew N/A -1% At the money volatility 10% to 40% (26%) 10% to 40% (26%) Borrowings $ 3,620 $ 2,984 Option model: At the money volatility 5% to 35% (23%) 5% to 35% (22%) Volatility skew -2% to 0% (0%) -2% to 0% (0%) Equity correlation 38% to 98% (75%) 39% to 95% (86%) Equity - FX correlation -75% to 50% (-28%) -55% to 10% (-18%) Nonrecurring Fair Value Measurement Loans $ 1,096 $ 924 Corporate loan model: Credit spread 96 to 400 bps (160 bps) 93 to 563 bps (239 bps) Expected recovery: Asset coverage N/M 95% to 99% (95%) Points—Percentage of par IR—Interest rate FX—Foreign exchange 1. Amounts represent weighted averages except where simple averages and the median of the inputs are more relevant. 2. CVA and FVA are included in the balance but excluded from the Valuation Technique(s) and Significant Unobservable Inputs. 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 observabilit y of funding spreads in the principal market. 3. I ncludes derivative contracts with multiple risks ( i.e. , hybrid products). |
Measured Based on Net Asset Value | At September 30, 2018 At December 31, 2017 Carrying Carrying $ in millions Value Commitment Value Commitment Private equity $ 1,568 $ 328 $ 1,674 $ 308 Real estate 749 168 800 183 Hedge 1 95 4 90 4 Total $ 2,412 $ 500 $ 2,564 $ 495 1. Investments in hedge funds may be subject to initial period lock-up or gate provisions, which restrict an investor from withdrawing from the fund during a certain initial period or restrict the redemption amount on any redemption date, respectively. Nonredeemable Funds by Contractual Maturity Carrying Value at September 30, 2018 $ in millions Private Equity Real Estate Less than 5 years $ 621 $ 408 5-10 years 816 313 Over 10 years 131 28 Total $ 1,568 $ 749 |
Fair Value Option | Borrowings Measured at Fair Value on a Recurring Basis At At September 30, December 31, $ in millions 2018 2017 Business Unit Responsible for Risk Management Equity $ 25,049 $ 25,903 Interest rates 22,101 19,230 Foreign exchange 504 666 Credit 863 815 Commodities 1,989 298 Total $ 50,506 $ 46,912 Earnings Impact of Borrowings under the Fair Value Option Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Trading revenues $ 449 $ (964) $ 1,334 $ (3,484) Interest expense (59) (107) (234) (338) Net revenues 1 $ 390 $ (1,071) $ 1,100 $ (3,822) 1. Amounts do not reflect any gains or losses on related hedging instruments. Gains (Losses) Due to Changes in Instrument-Specific Credit Risk Three Months Ended September 30, 2018 2017 $ in millions Trading Revenues OCI Trading Revenues OCI Borrowings $ (4) $ (1,010) $ 9 $ (226) Loans and other debt 1 55 ─ 49 ─ Lending commitments 2 (6) ─ ─ ─ Other (32) 28 ─ (3) Nine Months Ended September 30, 2018 2017 $ in millions Trading Revenues OCI Trading Revenues OCI Borrowings $ (22) $ 425 $ 1 $ (493) Loans and other debt 1 199 ─ 94 ─ Lending commitments 2 (3) ─ ─ ─ Other (32) 32 ─ (6) $ in millions At September 30, 2018 At December 31, 2017 Cumulative pre-tax DVA gain (loss) recognized in AOCI $ (1,374) $ (1,831) 1 . Loans and other debt instrument-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses. 2 . Gains (losses) on lending commitments were generally determined based on the differen ce between estimated expected client yields and contractual yields at each respective period-end . Excess of Contractual Principal Amount Over Fair Value At At September 30, December 31, $ in millions 2018 2017 Loans and other debt 1 $ 12,809 $ 13,481 Loans 90 or more days past due and/or on nonaccrual status 1 10,678 11,253 Borrowings 2 1,438 71 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. B orrowings in this table 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 2018 2017 Nonaccrual loans $ 1,522 $ 1,240 Nonaccrual loans 90 or more days past due $ 802 $ 779 |
Measured at Fair Value on a Nonrecurring Basis | Carrying and Fair Values At September 30, 2018 Fair Value $ in millions Level 2 Level 3 1 Total Assets Loans $ 1,460 $ 1,096 $ 2,556 Other assets—Other investments 15 36 51 Other assets—Premises, equipment and software ─ ─ ─ Total $ 1,475 $ 1,132 $ 2,607 Liabilities Other liabilities and accrued expenses— Lending commitments $ 185 $ 48 $ 233 Total $ 185 $ 48 $ 233 At December 31, 2017 Fair Value $ in millions Level 2 Level 3 1 Total Assets Loans $ 1,394 $ 924 $ 2,318 Other assets—Other investments ─ 144 144 Total $ 1,394 $ 1,068 $ 2,462 Liabilities Other liabilities and accrued expenses— Lending commitments $ 158 $ 38 $ 196 Total $ 158 $ 38 $ 196 1. For significant Level 3 balances, 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. Gains (Losses) from Fair Value Remeasurements 1 Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Assets Loans 2 $ (5) $ ─ $ 1 $ 41 Other assets—Other investments 3 (2) (6) (9) (6) Other assets—Premises, equipment and software 4 (3) (1) (13) (7) Total $ (10) $ (7) $ (21) $ 28 Liabilities Other liabilities and accrued expenses — Lending commitments 2 $ 31 $ 4 $ 41 $ 64 Total $ 31 $ 4 $ 41 $ 64 1. Gains and losses for Loans and Other assets — Other investments are classified in Othe r revenues. For other items, gains and losses are recorded in Other revenues if the item is held for sale, otherwise in Other expenses. 2. 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 CDS spread levels adjusted for any basis difference between cash and derivative instruments, or default recovery analysis where such trans actions and quotations are unobservable. 3. Loss es related to Other assets—Other investments were determined using techniques that included discounted cash flow models, methodologies that incorporate multiples of certain comparable companies and recently exec uted transactions. 4. Losses related to Other assets—Premis es, equipment and software were determined using techniques that included a default recovery analysis and recently executed transactions . |
Financial Instruments Not Measured at Fair Value | Financial Instruments Not Measured at Fair Value At September 30, 2018 Carrying Fair Value $ in millions Value Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents: Cash and due from banks $ 36,641 $ 36,641 $ — $ — $ 36,641 Interest bearing deposits with banks 22,638 22,638 — — 22,638 Restricted cash 33,202 33,202 — — 33,202 Investment securities—HTM 25,336 12,757 10,883 442 24,082 Securities purchased under agreements to resell 69,086 — 69,026 — 69,026 Securities borrowed 142,489 — 142,433 — 142,433 Customer and other receivables 1 55,189 — 51,768 3,251 55,019 Loans 2 109,983 — 21,259 88,321 109,580 Other assets 483 — 483 — 483 Financial Liabilities Deposits $ 174,803 $ — $ 174,764 $ — $ 174,764 Securities sold under agreements to repurchase 59,544 — 59,495 — 59,495 Securities loaned 11,833 — 11,909 — 11,909 Other secured financings 5,503 — 3,876 1,634 5,510 Customer and other payables 1 188,054 — 188,054 — 188,054 Borrowings 140,383 — 145,076 30 145,106 At December 31, 2017 Carrying Fair Value $ in millions Value Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents: Cash and due from banks $ 24,816 $ 24,816 $ — $ — $ 24,816 Interest bearing deposits with banks 21,348 21,348 — — 21,348 Restricted cash 34,231 34,231 — — 34,231 Investment securities— HTM 23,599 11,119 11,673 289 23,081 Securities purchased under agreements to resell 84,258 — 78,239 5,978 84,217 Securities borrowed 124,010 — 124,018 1 124,019 Customer and other receivables 1 51,269 — 47,159 3,984 51,143 Loans 2 104,126 — 21,290 82,928 104,218 Other assets 433 — 433 — 433 Financial Liabilities Deposits $ 159,232 $ — $ 159,232 $ — $ 159,232 Securities sold under agreements to repurchase 55,624 — 51,752 3,867 55,619 Securities loaned 13,592 — 13,191 401 13,592 Other secured financings 7,408 — 5,987 1,431 7,418 Customer and other payables 1 188,464 — 188,464 — 188,464 Borrowings 145,670 — 151,692 30 151,722 1. Accrued interest and dividend receivables and payables where carrying value approximates fair value have been excluded. 2. Amounts include loans measured at fair value on a non recurring basis . Lending Commitments—Held for Investment and Held for Sale Commitment Fair Value $ in millions Amount 1 Level 2 Level 3 Total September 30, 2018 $ 106,904 $ 702 $ 204 $ 906 December 31, 2017 100,151 620 174 794 1. For further discussion on lending commitments, see Note 11 . |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Asset Fair Values | Derivative Fair Values At September 30, 2018 Assets $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 467 $ — $ — $ 467 Foreign exchange contracts 107 46 — 153 Total 574 46 — 620 Not designated as accounting hedges Interest rate contracts 156,859 1,960 379 159,198 Credit contracts 4,446 1,710 — 6,156 Foreign exchange contracts 61,596 1,798 182 63,576 Equity contracts 26,522 — 23,396 49,918 Commodity and other contracts 8,975 — 2,136 11,111 Total 258,398 5,468 26,093 289,959 Total gross derivatives $ 258,972 $ 5,514 $ 26,093 $ 290,579 Amounts offset Counterparty netting (190,040) (4,850) (24,242) (219,132) Cash collateral netting (40,294) (514) — (40,808) Total in Trading assets $ 28,638 $ 150 $ 1,851 $ 30,639 Amounts not offset 1 Financial instruments collateral (14,077) — — (14,077) Other cash collateral (29) — — (29) Net amounts $ 14,532 $ 150 $ 1,851 $ 16,533 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 3,590 At December 31, 2017 Assets $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 1,057 $ — $ — $ 1,057 Foreign exchange contracts 57 6 — 63 Total 1,114 6 — 1,120 Not designated as accounting hedges Interest rate contracts 177,948 1,700 234 179,882 Credit contracts 5,740 2,282 — 8,022 Foreign exchange contracts 52,878 798 58 53,734 Equity contracts 24,452 — 20,538 44,990 Commodity and other contracts 8,861 — 1,802 10,663 Total 269,879 4,780 22,632 297,291 Total gross derivatives $ 270,993 $ 4,786 $ 22,632 $ 298,411 Amounts offset Counterparty netting (201,051) (3,856) (19,861) (224,768) Cash collateral netting (42,141) (689) — (42,830) Total in Trading assets $ 27,801 $ 241 $ 2,771 $ 30,813 Amounts not offset 1 Financial instruments collateral (12,363) — — (12,363) Other cash collateral (4) — — (4) Net amounts $ 15,434 $ 241 $ 2,771 $ 18,446 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 3,154 1. Amounts relate to master netting agreements and collateral agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance . |
Derivative Liability Fair Values | Liabilities $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 270 $ 1 $ — $ 271 Foreign exchange contracts 19 14 — 33 Total 289 15 — 304 Not designated as accounting hedges Interest rate contracts 140,816 1,733 508 143,057 Credit contracts 4,452 2,099 — 6,551 Foreign exchange contracts 59,763 1,848 84 61,695 Equity contracts 28,920 — 22,467 51,387 Commodity and other contracts 8,308 — 2,073 10,381 Total 242,259 5,680 25,132 273,071 Total gross derivatives $ 242,548 $ 5,695 $ 25,132 $ 273,375 Amounts offset Counterparty netting (190,040) (4,850) (24,242) (219,132) Cash collateral netting (27,777) (640) — (28,417) Total in Trading liabilities $ 24,731 $ 205 $ 890 $ 25,826 Amounts not offset 1 Financial instruments collateral (4,729) — (143) (4,872) Other cash collateral (33) — — (33) Net amounts $ 19,969 $ 205 $ 747 $ 20,921 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 5,763 Liabilities $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 67 $ 1 $ — $ 68 Foreign exchange contracts 72 57 — 129 Total 139 58 — 197 Not designated as accounting hedges Interest rate contracts 161,758 1,178 144 163,080 Credit contracts 6,273 2,272 — 8,545 Foreign exchange contracts 54,191 925 23 55,139 Equity contracts 27,993 — 19,996 47,989 Commodity and other contracts 7,117 — 1,772 8,889 Total 257,332 4,375 21,935 283,642 Total gross derivatives $ 257,471 $ 4,433 $ 21,935 $ 283,839 Amounts offset Counterparty netting (201,051) (3,856) (19,861) (224,768) Cash collateral netting (31,892) (484) — (32,376) Total in Trading liabilities $ 24,528 $ 93 $ 2,074 $ 26,695 Amounts not offset 1 Financial instruments collateral (5,523) — (412) (5,935) Other cash collateral (18) (14) — (32) Net amounts $ 18,987 $ 79 $ 1,662 $ 20,728 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable $ 3,751 1. Amounts relate to master netting agreements and collateral agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance . |
Derivative Notionals | Derivative Notionals At September 30, 2018 Assets $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 16 $ 8 $ — $ 24 Foreign exchange contracts 5 1 — 6 Total 21 9 — 30 Not designated as accounting hedges Interest rate contracts 5,359 7,067 1,206 13,632 Credit contracts 139 71 — 210 Foreign exchange contracts 2,160 91 18 2,269 Equity contracts 433 — 406 839 Commodity and other contracts 95 — 64 159 Total 8,186 7,229 1,694 17,109 Total gross derivatives $ 8,207 $ 7,238 $ 1,694 $ 17,139 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 2 $ 153 $ — $ 155 Foreign exchange contracts 3 1 — 4 Total 5 154 — 159 Not designated as accounting hedges Interest rate contracts 5,317 6,361 710 12,388 Credit contracts 146 79 — 225 Foreign exchange contracts 2,155 87 17 2,259 Equity contracts 462 — 578 1,040 Commodity and other contracts 77 — 62 139 Total 8,157 6,527 1,367 16,051 Total gross derivatives $ 8,162 $ 6,681 $ 1,367 $ 16,210 At December 31, 2017 Assets $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 20 $ 46 $ — $ 66 Foreign exchange contracts 4 — — 4 Total 24 46 — 70 Not designated as accounting hedges Interest rate contracts 3,999 6,458 2,714 13,171 Credit contracts 194 100 — 294 Foreign exchange contracts 1,960 67 9 2,036 Equity contracts 397 — 334 731 Commodity and other contracts 86 — 72 158 Total 6,636 6,625 3,129 16,390 Total gross derivatives $ 6,660 $ 6,671 $ 3,129 $ 16,460 Liabilities $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate contracts $ 2 $ 102 $ — $ 104 Foreign exchange contracts 4 2 — 6 Total 6 104 — 110 Not designated as accounting hedges Interest rate contracts 4,199 6,325 1,089 11,613 Credit contracts 226 80 — 306 Foreign exchange contracts 2,014 78 51 2,143 Equity contracts 394 — 405 799 Commodity and other contracts 68 — 61 129 Total 6,901 6,483 1,606 14,990 Total gross derivatives $ 6,907 $ 6,587 $ 1,606 $ 15,100 |
Gains (Losses) on Accounting Hedges | Gains (Losses) on Accounting Hedges Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Fair Value Hedges—Recognized in Interest Expense Interest rate contracts $ (1,124) $ (218) $ (3,584) $ (878) Borrowings 1,124 175 3,563 670 Net Investment Hedges—Foreign exchange contracts Recognized in OCI $ 107 $ (88) $ 354 $ (340) Forward points excluded from hedge effectiveness testing—Recognized in Interest income 13 (3) 44 (22) |
Fair Value Hedges - Hedged Items | Fair Value Hedges—Hedged Items $ in millions At September 30, 2018 Investment Securities—AFS 1 Carrying amount 2 currently or previously hedged $ 86 Borrowings Carrying amount 2 currently or previously hedged $ 103,269 Basis adjustments included in carrying amount 3 $ (3,744) 1. In the current quarter, the Firm began designating interest rate swaps as fair value hedges of certain AFS securities. Amounts recognized in interest income and basis adjustments related to AFS securities were not material. 2. Carrying amount represents amortized cost basis. 3. Hedge accounting basis adjustments for Borrowings are primarily related to outstanding hedges. |
Credit Risk-Related Contingencies | Net Derivative Liabilities and Collateral Posted At At September 30, December 31, $ in millions 2018 2017 Net derivative liabilities with credit risk-related contingent features $ 16,081 $ 20,675 Collateral posted 12,745 16,642 Incremental Collateral or Termination Payments upon Potential Future Ratings Downgrade At September 30, $ in millions 2018 One-notch downgrade $ 429 Two-notch downgrade 325 Bilateral downgrade agreements included in the amounts above 1 $ 653 1. Amount represents arrangements between the Firm and other parties where upon the downgrade of one party, the downgraded party must deliver collateral to the other party. These bilateral downg rade arrangements are used by the Firm to manage the risk of counterparty downgrades. |
Credit Derivatives and Other Credit Contracts | Protection Sold and Purchased with CDS At September 30, 2018 Fair Value (Asset)/Liability Notional Protection Protection Protection Protection $ in millions Sold Purchased Sold Purchased Single name $ (326) $ 469 $ 111,848 $ 127,114 Index and basket 159 (67) 81,810 94,320 Tranched index and basket (207) 367 6,844 12,738 Total $ (374) $ 769 $ 200,502 $ 234,172 At December 31, 2017 Fair Value (Asset)/Liability Notional Protection Protection Protection Protection $ in millions Sold Purchased Sold Purchased Single name $ (1,277) $ 1,658 $ 146,948 $ 164,773 Index and basket (341) 209 131,073 120,348 Tranched index and basket (342) 616 11,864 24,498 Total $ (1,960) $ 2,483 $ 289,885 $ 309,619 Maximum Potential Payout/Notional of Credit Protection Sold 1 Years to maturity at September 30, 2018 $ in millions < 1 1-3 3-5 Over 5 Total Single name CDS Investment grade $ 24,275 $ 25,802 $ 17,512 $ 9,721 $ 77,310 Non-investment grade 11,777 12,006 8,743 2,012 34,538 Total $ 36,052 $ 37,808 $ 26,255 $ 11,733 $ 111,848 Index and basket CDS Investment grade $ 6,594 $ 8,975 $ 22,203 $ 16,832 $ 54,604 Non-investment grade 5,300 6,884 9,727 12,139 34,050 Total $ 11,894 $ 15,859 $ 31,930 $ 28,971 $ 88,654 Total CDS sold $ 47,946 $ 53,667 $ 58,185 $ 40,704 $ 200,502 Other credit contracts — — — 129 129 Total credit protection sold $ 47,946 $ 53,667 $ 58,185 $ 40,833 $ 200,631 CDS protection sold with identical protection purchased $ 186,961 Years to maturity at December 31, 2017 $ in millions < 1 1-3 3-5 Over 5 Total Single name CDS Investment grade $ 39,721 $ 42,591 $ 18,157 $ 8,872 $ 109,341 Non-investment grade 14,213 16,293 6,193 908 37,607 Total $ 53,934 $ 58,884 $ 24,350 $ 9,780 $ 146,948 Index and basket CDS Investment grade $ 29,046 $ 15,418 $ 37,343 $ 6,807 $ 88,614 Non-investment grade 5,246 7,371 32,417 9,289 54,323 Total $ 34,292 $ 22,789 $ 69,760 $ 16,096 $ 142,937 Total CDS sold $ 88,226 $ 81,673 $ 94,110 $ 25,876 $ 289,885 Other credit contracts 2 — — 134 136 Total credit protection sold $ 88,228 $ 81,673 $ 94,110 $ 26,010 $ 290,021 CDS protection sold with identical protection purchased $ 274,473 Fair Value (Asset)/Liability of Credit Protection Sold 1 At At $ in millions September 30, 2018 December 31, 2017 Single name CDS Investment grade $ (387) $ (1,167) Non-investment grade 61 (110) Total $ (326) $ (1,277) Index and basket CDS Investment grade $ (683) $ (1,091) Non-investment grade 635 408 Total $ (48) $ (683) Total CDS sold $ (374) $ (1,960) Other credit contracts 21 16 Total credit protection sold $ (353) $ (1,944) 1. Investment grade/non-investment grade determination is based on the internal credit rating of the reference obligation. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investment securities | |
Schedule of AFS and HTM Securities | AFS and HTM Securities At September 30, 2018 $ in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS securities U.S. government and agency securities: U.S. Treasury securities $ 33,093 $ — $ 1,026 $ 32,067 U.S. agency securities 1 20,368 14 658 19,724 Total U.S. government and agency securities 53,461 14 1,684 51,791 Corporate and other debt: Agency CMBS 1,198 1 70 1,129 Non-agency CMBS 465 — 18 447 Corporate bonds 1,402 — 34 1,368 State and municipal securities 200 — — 200 CLO 262 — — 262 FFELP student loan ABS 2 2,027 15 7 2,035 Total corporate and other debt 5,554 16 129 5,441 Total AFS securities 59,015 30 1,813 57,232 HTM securities U.S. government and agency securities: U.S. Treasury securities 13,387 — 630 12,757 U.S. agency securities 1 11,500 — 617 10,883 Total U.S. government and agency securities 24,887 — 1,247 23,640 Corporate and other debt: Non-agency CMBS 449 1 8 442 Total HTM securities 25,336 1 1,255 24,082 Total investment securities $ 84,351 $ 31 $ 3,068 $ 81,314 At December 31, 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 $ 26,842 $ — $ 589 $ 26,253 U.S. agency securities 1 22,803 28 247 22,584 Total U.S. government and agency securities 49,645 28 836 48,837 Corporate and other debt: Agency CMBS 1,370 2 49 1,323 Non-agency CMBS 1,102 — 8 1,094 Corporate bonds 1,379 5 12 1,372 CLO 398 1 — 399 FFELP student loan ABS 2 2,165 15 7 2,173 Total corporate and other debt 6,414 23 76 6,361 Total AFS debt securities 56,059 51 912 55,198 AFS equity securities 15 — 10 5 Total AFS securities 56,074 51 922 55,203 HTM securities U.S. government and agency securities: U.S. Treasury securities 11,424 — 305 11,119 U.S. agency securities 1 11,886 7 220 11,673 Total U.S. government and agency securities 23,310 7 525 22,792 Corporate and other debt: Non-agency CMBS 289 1 1 289 Total HTM securities 23,599 8 526 23,081 Total investment securities $ 79,673 $ 59 $ 1,448 $ 78,284 1. U.S. agency securities consist mainly of agency-issued debt, agency mortgage pass-through pool securities and CMO s. 2. Underlying loans are backed by a guarantee , ultimately from the U.S. Department of Education , of at leas t 95 % of the principal balance and interest outstanding. |
Schedule of Investment Securities in an Unrealized Loss Position | Investment Securities in an Unrealized Loss Position At September 30, 2018 Less than 12 Months 12 Months or Longer Total $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS securities U.S. government and agency securities: U.S. Treasury securities $ 26,238 $ 858 $ 5,284 $ 168 $ 31,522 $ 1,026 U.S. agency securities 13,615 525 2,604 133 16,219 658 Total U.S. government and agency securities 39,853 1,383 7,888 301 47,741 1,684 Corporate and other debt: Agency CMBS 828 70 — — 828 70 Non-agency CMBS 224 7 223 11 447 18 Corporate bonds 725 14 521 20 1,246 34 FFELP student loan ABS 881 7 — — 881 7 Total corporate and other debt 2,658 98 744 31 3,402 129 Total AFS securities 42,511 1,481 8,632 332 51,143 1,813 HTM securities U.S. government and agency securities: U.S. Treasury securities 3,102 44 9,655 586 12,757 630 U.S. agency securities 2,373 73 8,510 544 10,883 617 Total U.S. government and agency securities 5,475 117 18,165 1,130 23,640 1,247 Corporate and other debt: Non-agency CMBS 195 5 68 3 263 8 Total HTM securities 5,670 122 18,233 1,133 23,903 1,255 Total investment securities $ 48,181 $ 1,603 $ 26,865 $ 1,465 $ 75,046 $ 3,068 At December 31, 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 $ 21,941 $ 495 $ 4,287 $ 94 $ 26,228 $ 589 U.S. agency securities 12,673 192 2,513 55 15,186 247 Total U.S. government and agency securities 34,614 687 6,800 149 41,414 836 Corporate and other debt: Agency CMBS 930 49 — — 930 49 Non-agency CMBS 257 1 559 7 816 8 Corporate bonds 316 3 389 9 705 12 FFELP student loan ABS 984 7 — — 984 7 Total corporate and other debt 2,487 60 948 16 3,435 76 Total AFS debt securities 37,101 747 7,748 165 44,849 912 AFS equity securities — — 5 10 5 10 Total AFS securities 37,101 747 7,753 175 44,854 922 HTM securities U.S. government and agency securities: U.S. Treasury securities 6,608 86 4,512 219 11,120 305 U.S. agency securities 2,879 24 7,298 196 10,177 220 Total U.S. government and agency securities 9,487 110 11,810 415 21,297 525 Corporate and other debt: Non-agency CMBS 124 1 — — 124 1 Total HTM securities 9,611 111 11,810 415 21,421 526 Total investment securities $ 46,712 $ 858 $ 19,563 $ 590 $ 66,275 $ 1,448 |
Schedule of Investment Securities by Contractual Maturity | Investment Securities by Contractual Maturity At September 30, 2018 $ in millions Amortized Cost Fair Value Annualized Average Yield AFS securities U.S. government and agency securities: U.S. Treasury securities: Due within 1 year $ 3,447 $ 3,432 1.3% After 1 year through 5 years 27,517 26,734 1.9% After 5 years through 10 years 2,129 1,901 1.4% Total 33,093 32,067 U.S. agency securities: Due within 1 year 473 467 1.0% After 1 year through 5 years 806 789 1.2% After 5 years through 10 years 1,718 1,644 1.8% After 10 years 17,371 16,824 2.1% Total 20,368 19,724 Total U.S. government and agency securities 53,461 51,791 1.9% Corporate and other debt: Agency CMBS: Due within 1 year 3 3 0.9% After 1 year through 5 years 384 382 1.3% After 5 years through 10 years 40 41 1.2% After 10 years 771 703 1.6% Total 1,198 1,129 Non-agency CMBS: After 5 years through 10 years 36 34 2.5% After 10 years 429 413 2.4% Total 465 447 Corporate bonds: Due within 1 year 70 70 1.7% After 1 year through 5 years 1,270 1,237 2.4% After 5 years through 10 years 62 61 3.4% Total 1,402 1,368 State and municipal securities: After 1 year through 5 years 200 200 3.5% Total 200 200 CLO: After 5 years through 10 years 64 64 1.5% After 10 years 198 198 2.4% Total 262 262 FFELP student loan ABS: After 1 year through 5 years 84 83 0.8% After 5 years through 10 years 319 316 0.8% After 10 years 1,624 1,636 1.2% Total 2,027 2,035 Total corporate and other debt 5,554 5,441 1.8% Total AFS securities 59,015 57,232 1.9% HTM securities U.S. government securities: U.S. Treasury securities: Due within 1 year 2,126 2,118 1.2% After 1 year through 5 years 5,423 5,303 2.0% After 5 years through 10 years 5,112 4,725 1.9% After 10 years 726 611 2.3% Total 13,387 12,757 U.S. agency securities: After 5 years through 10 years 31 30 1.9% After 10 years 11,469 10,853 2.6% Total 11,500 10,883 Total U.S. government and agency securities 24,887 23,640 2.2% Corporate and other debt: Non-agency CMBS: Due within 1 year 68 68 3.5% After 1 year through 5 years 61 61 4.4% After 5 years through 10 years 301 295 4.0% After 10 years 19 18 4.0% Total corporate and other debt 449 442 4.0% Total HTM securities 25,336 24,082 2.2% Total investment securities $ 84,351 $ 81,314 2.0% |
Schedule of Gross Realized Gains and Losses on Sales of AFS Securities | Gross Realized Gains (Losses) on Sales of AFS Securities Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Gross realized gains $ 5 $ 11 $ 11 $ 38 Gross realized (losses) — — (3) (11) Total 1 $ 5 $ 11 $ 8 $ 27 1. Gross realized gains and losses are recognized in Other revenues in the income statements. |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Collateralized Transactions | |
Offsetting of Certain Collaterized Transactions | Offsetting of Certain Collateralized Transactions At September 30, 2018 $ in millions Gross Amounts Amounts Offset Net Amounts Presented Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 212,796 $ (143,710) $ 69,086 $ (63,821) $ 5,265 Securities borrowed 161,903 (19,414) 142,489 (136,940) 5,549 Liabilities Securities sold under agreements to repurchase $ 204,038 $ (143,710) $ 60,328 $ (52,421) $ 7,907 Securities loaned 31,247 (19,414) 11,833 (11,664) 169 Net amounts for which master netting agreements are not in place or may not be legally enforceable Securities purchased under agreements to resell $ 3,640 Securities borrowed 1,377 Securities sold under agreements to repurchase 6,074 Securities loaned 142 At December 31, 2017 $ in millions Gross Amounts Amounts Offset Net Amounts Presented Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 199,044 $ (114,786) $ 84,258 $ (78,009) $ 6,249 Securities borrowed 133,431 (9,421) 124,010 (119,358) 4,652 Liabilities Securities sold under agreements to repurchase $ 171,210 $ (114,786) $ 56,424 $ (48,067) $ 8,357 Securities loaned 23,014 (9,422) 13,592 (13,271) 321 Net amounts for which master netting agreements are not in place or may not be legally enforceable Securities purchased under agreements to resell $ 5,687 Securities borrowed 572 Securities sold under agreements to repurchase 6,945 Securities loaned 307 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. |
Gross Secured Financing Balances | Maturities and Collateral Pledged Gross Secured Financing Balances by Remaining Contractual Maturity At September 30, 2018 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase $ 69,184 $ 59,181 $ 32,727 $ 42,946 $ 204,038 Securities loaned 19,930 3,698 1,733 5,886 31,247 Total included in the offsetting disclosure $ 89,114 $ 62,879 $ 34,460 $ 48,832 $ 235,285 Trading liabilities ― Obligation to return securities received as collateral 18,727 — — — 18,727 Total $ 107,841 $ 62,879 $ 34,460 $ 48,832 $ 254,012 At December 31, 2017 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase $ 41,332 $ 66,593 $ 28,682 $ 34,603 $ 171,210 Securities loaned 12,130 873 1,577 8,434 23,014 Total included in the offsetting disclosure $ 53,462 $ 67,466 $ 30,259 $ 43,037 $ 194,224 Trading liabilities ― Obligation to return securities received as collateral 22,555 — — — 22,555 Total $ 76,017 $ 67,466 $ 30,259 $ 43,037 $ 216,779 Gross Secured Financing Balances by Class of Collateral Pledged $ in millions At September 30, 2018 At December 31, 2017 Securities sold under agreements to repurchase U.S. Treasury and agency securities $ 54,625 $ 43,346 State and municipal securities 1,516 2,451 Other sovereign government obligations 115,046 87,141 ABS 2,257 1,130 Corporate and other debt 8,142 7,737 Corporate equities 21,756 28,497 Other 696 908 Total $ 204,038 $ 171,210 Securities loaned Other sovereign government obligations $ 19,850 $ 9,489 Corporate equities 11,270 13,174 Other 127 351 Total $ 31,247 $ 23,014 Total included in the offsetting disclosure $ 235,285 $ 194,224 Trading liabilities ― Obligation to return securities received as collateral Corporate equities $ 18,727 $ 22,555 Total $ 254,012 $ 216,779 |
Carrying Value of Assets Loaned or Pledged Without Counterparty Right to Sell or Repledge | Carrying Value of Assets Loaned or Pledged without Counterparty Right to Sell or Repledge At At September 30, December 31, $ in millions 2018 2017 Trading assets $ 31,347 $ 31,324 Loans (gross of allowance for loan losses) 570 228 Total $ 31,917 $ 31,552 |
Fair Value of Collateral Received with Right to Sell or Repledge | Fair Value of Collateral Received with Right to Sell or Repledge At At September 30, December 31, $ in millions 2018 2017 Collateral received with right to sell or repledge $ 658,309 $ 599,244 Collateral that was sold or repledged 1 505,108 475,113 1. Does not include securities used to meet federal regulations for the Firm’s broker-dealers. |
Customer Margin Lending and Other | Customer Margin Lending and Other At At September 30, December 31, $ in millions 2018 2017 Net customer receivables representing margin loans $ 33,821 $ 32,112 |
Restricted Cash and Segregated Securities | Restricted Cash and Segregated Securities At At September 30, December 31, $ in millions 2018 2017 Restricted cash $ 33,202 $ 34,231 Segregated securities 1 25,820 20,549 Total $ 59,022 $ 54,780 1. Securities segregated under federal regulations for the Firm’s U.S. broker-dealers are sourced from Securities purchased under agreements to resell and Trading assets in the balance sheets. |
Loans, Lending Commitments an_2
Loans, Lending Commitments and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans by Type | Loans by Type At September 30, 2018 Loans Held Loans Held $ in millions for Investment for Sale Total Loans Corporate loans $ 35,439 $ 10,035 $ 45,474 Consumer loans 28,321 — 28,321 Residential real estate loans 26,644 29 26,673 Wholesale real estate loans 8,157 1,589 9,746 Total loans, gross 98,561 11,653 110,214 Allowance for loan losses (231) — (231) Total loans, net $ 98,330 $ 11,653 $ 109,983 Fixed rate loans, net $ 15,263 Floating or adjustable rate loans, net 94,720 Loans to non-U.S. borrowers, net 14,346 At December 31, 2017 Loans Held Loans Held $ in millions for Investment for Sale Total Loans Corporate loans $ 29,754 $ 9,456 $ 39,210 Consumer loans 26,808 — 26,808 Residential real estate loans 26,635 35 26,670 Wholesale real estate loans 9,980 1,682 11,662 Total loans, gross 93,177 11,173 104,350 Allowance for loan losses (224) — (224) Total loans, net $ 92,953 $ 11,173 $ 104,126 Fixed rate loans, net $ 13,339 Floating or adjustable rate loans, net 90,787 Loans to non-U.S. borrowers, net 9,977 |
Loans Held for Investment Before Allowance by Credit Quality | Loans Held for Investment before Allowance by Credit Quality At September 30, 2018 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 35,062 $ 28,316 $ 26,563 $ 7,625 $ 97,566 Special mention 108 5 — 360 473 Substandard 268 — 81 172 521 Doubtful 1 — — — 1 Loss — — — — — Total $ 35,439 $ 28,321 $ 26,644 $ 8,157 $ 98,561 At December 31, 2017 $ in millions Corporate Consumer Residential Real Estate Wholesale Real Estate Total Pass $ 29,166 $ 26,802 $ 26,562 $ 9,480 $ 92,010 Special mention 188 6 — 200 394 Substandard 393 — 73 300 766 Doubtful 7 — — — 7 Loss — — — — — Total $ 29,754 $ 26,808 $ 26,635 $ 9,980 $ 93,177 |
Impaired Loans and Lending Commitments Before Allowance | Impaired Loans and Lending Commitments before Allowance At September 30, 2018 Residential $ in millions Corporate Real Estate Total Loans With allowance $ 23 $ — $ 23 Without allowance 1 42 60 102 Total impaired loans $ 65 $ 60 $ 125 UPB 71 61 132 Lending Commitments With allowance $ 21 $ — $ 21 Without allowance 1 24 — 24 At December 31, 2017 Residential $ in millions Corporate Real Estate Total Loans With allowance $ 16 $ — $ 16 Without allowance 1 118 45 163 Total impaired loans $ 134 $ 45 $ 179 UPB 146 46 192 Lending Commitments Without allowance 1 $ 199 $ — $ 199 1. At September 30, 2018 and December 31, 2017 , 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. |
Impaired Loans and Allowance by Region | Impaired Loans and Total Allowance by Region At September 30, 2018 $ in millions Americas EMEA Asia Total Impaired loans $ 125 $ — $ — $ 125 Total Allowance for loan losses 192 38 1 231 At December 31, 2017 $ in millions Americas EMEA Asia Total Impaired loans $ 160 $ 9 $ 10 $ 179 Total Allowance for loan losses 194 27 3 224 |
Troubled Debt Restructurings | Troubled Debt Restructurings At At September 30, December 31, $ in millions 2018 2017 Loans $ 46 $ 51 Lending commitments 37 28 Allowance for loan losses and lending commitments 4 10 |
Allowance for Loan Losses and Lending Commitments Rollforward | Allowance for Loan Losses Rollforward Residential Wholesale $ in millions Corporate Consumer Real Estate Real Estate Total December 31, 2017 $ 126 $ 4 $ 24 $ 70 $ 224 Gross charge-offs (4) — — — (4) Recoveries 1 54 — — — 54 Net recoveries (charge-offs) 50 — — — 50 Provision (release) 1, 2 (39) 1 (4) 9 (33) Other (2) — — (8) (10) September 30, 2018 $ 135 $ 5 $ 20 $ 71 $ 231 Inherent $ 130 $ 5 $ 20 $ 71 $ 226 Specific 5 — — — 5 Residential Wholesale $ in millions Corporate Consumer Real Estate Real Estate Total December 31, 2016 $ 195 $ 4 $ 20 $ 55 $ 274 Gross charge-offs (75) — — — (75) Recoveries 1 — — — 1 Net recoveries (charge-offs) (74) — — — (74) Provision (release) 2 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 1. The current year period release was primarily due to the recovery of a previously charged off energy industry related loan. 2. The Firm recorded a provision of $ 1 million and $ 13 million for loan losses in the current quarter and prior year quarter, respectively. Allowance for Lending Commitments Rollforward Residential Wholesale $ in millions Corporate Consumer Real Estate Real Estate Total December 31, 2017 $ 194 $ 1 $ — $ 3 $ 198 Provision (release) 1 5 — — 1 6 Other (2) — — (1) (3) September 30, 2018 $ 197 $ 1 $ — $ 3 $ 201 Inherent $ 190 $ 1 $ — $ 3 $ 194 Specific 7 — — — 7 Residential Wholesale $ in millions Corporate Consumer Real Estate Real Estate 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 1. The Firm recorded a provision of $ 1 million , and release of $ 6 million for lending commitments in the current quarter and prior year quarter, respectively. |
Employee Loans | Employee Loans At At September 30, December 31, $ in millions 2018 2017 Balance $ 3,491 $ 4,185 Allowance for loan losses (70) (77) Balance, net $ 3,421 $ 4,108 Repayment term range, in years 1 to 20 1 to 20 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments | |
Schedule of Equity Method Investments | Equity Method Investment Balances At At September 30, December 31, $ in millions 2018 2017 Investments $ 2,452 $ 2,623 Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Income (loss) $ 8 $ — $ 62 $ — |
MUMSS | |
Equity Method Investments | |
Schedule of Equity Method Investments | Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Income from investment in MUMSS $ 17 $ 25 $ 99 $ 96 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deposits [Abstract] | |
Deposits | Deposits At At September 30, December 31, $ in millions 2018 2017 Savings and demand deposits $ 143,962 $ 144,487 Time deposits 31,223 14,949 Total $ 175,185 $ 159,436 Deposits subject to FDIC insurance $ 134,872 $ 127,017 Time deposits that equal or exceed the FDIC insurance limit $ 12 $ 38 |
Time Deposit Maturities | Time Deposit Maturities At September 30, $ in millions 2018 2018 $ 7,238 2019 12,519 2020 7,879 2021 1,569 2022 631 Thereafter 1,387 |
Borrowings and Other Secured _2
Borrowings and Other Secured Financings (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Borrowings and Other Secured Financings | |
Borrowings | Borrowings At At September 30, December 31, $ in millions 2018 2017 Original maturities of one year or less $ 940 $ 1,519 Original maturities greater than one year Senior $ 180,136 $ 180,835 Subordinated 9,813 10,228 Total $ 189,949 $ 191,063 Total borrowings $ 190,889 $ 192,582 Weighted average stated maturity, in years 1 6.6 6.6 1. Includes only borrowings with original maturities greater than one year. |
Borrowings with Original Maturities Greater than One Year | Other Secured Financings by Original Maturity and Type At At September 30, December 31, $ in millions 2018 2017 Original maturities: Greater than one year $ 7,840 $ 8,685 One year or less 1,555 2,034 Failed sales 662 552 Total $ 10,057 $ 11,271 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments, Guarantees and Contingencies [Abstract] | |
Commitments by Years to Maturity | Commitments Years to Maturity at September 30, 2018 Less $ in millions than 1 1-3 3-5 Over 5 Total Lending: Corporate $ 13,345 $ 32,893 $ 46,671 $ 7,805 $ 100,714 Consumer 7,074 — 11 — 7,085 Residential real estate — 83 13 253 349 Wholesale real estate 129 530 — — 659 Forward-starting secured financing receivables 82,818 — — 1,181 83,999 Investment activities 517 100 47 257 921 Letters of credit and other financial guarantees 184 1 — 39 224 Total $ 104,067 $ 33,607 $ 46,742 $ 9,535 $ 193,951 Corporate lending commitments participated to third parties $ 7,620 Forward-starting secured financing receivables settled within three business days $ 77,520 |
Obligations under Guarantee Arrangements | Obligations under Guarantee Arrangements at September 30, 2018 Maximum Potential Payout/Notional Years to Maturity $ in millions Less than 1 1-3 3-5 Over 5 Total Credit derivatives $ 47,946 $ 53,667 $ 58,185 $ 40,704 $ 200,502 Other credit contracts — — — 129 129 Non-credit derivatives 1,870,310 1,471,732 405,669 648,797 4,396,508 Standby letters of credit and other financial guarantees issued 1 1,009 913 1,452 4,908 8,282 Market value guarantees 16 101 24 — 141 Liquidity facilities 3,994 — — — 3,994 Whole loan sales guarantees — 1 — 23,215 23,216 Securitization representations and warranties — — — 63,208 63,208 General partner guarantees 4 52 338 34 428 Carrying Amount (Asset)/ Collateral/ $ in millions Liability Recourse Credit derivatives 2 $ (374) $ — Other credit contracts 21 — Non-credit derivatives 2 40,951 — Standby letters of credit and other financial guarantees issued 1 (234) 6,717 Market value guarantees — 3 Liquidity facilities (6) 6,459 Whole loan sales guarantees 9 — Securitization representations and warranties 62 — General partner guarantees 73 — 1. These amounts include certain issued standby letters of credit particip ated to third parties, totaling $ 0.6 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 an_2
Variable Interest Entities and Securitization Activities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entities and Securitization Activities [Abstract] | |
Consolidated VIEs | Assets and Liabilities by Type of Activity At September 30, 2018 At December 31, 2017 $ in millions VIE Assets VIE Liabilities VIE Assets VIE Liabilities OSF $ 273 $ — $ 378 $ 3 MABS 1 66 44 249 210 Other 2 2,234 834 1,174 250 Total $ 2,573 $ 878 $ 1,801 $ 463 OSF—Other structured financings 1. Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets. The value of assets is determined based on the fair value of the liabilities and the interests owned by the Firm in such VIEs as the fair values for the liabilities and interests owned are more observable. 2. Other primarily includes investment fu nds, certain operating entities and structured transactions. At September 30, 2018, Other includes the consolidation of a fund managed by Mesa West Capital, LLC, which was acquired in the first quarter of 2018. Assets and Liabilities by Balance Sheet Caption At At September 30, December 31, $ in millions 2018 2017 Assets Cash and cash equivalents: Cash and due from banks $ 99 $ 69 Restricted cash 170 222 Trading assets at fair value 1,712 833 Customer and other receivables 22 19 Goodwill 18 18 Intangible assets 134 155 Other assets 418 485 Total $ 2,573 $ 1,801 Liabilities Other secured financings $ 845 $ 438 Other liabilities and accrued expenses 33 25 Total $ 878 $ 463 Noncontrolling interests $ 437 $ 189 |
Non-Consolidated VIEs | At September 30, 2018 $ in millions MABS CDO MTOB OSF Other VIE assets (UPB) $ 73,812 $ 15,427 $ 6,314 $ 3,457 $ 20,199 Maximum exposure to loss Debt and equity interests $ 8,598 $ 1,505 $ 17 $ 1,579 $ 5,006 Derivative and other contracts — — 3,994 — 1,756 Commitments, guarantees and other 863 630 — 139 327 Total $ 9,461 $ 2,135 $ 4,011 $ 1,718 $ 7,089 Carrying value of exposure to loss—Assets Debt and equity interests $ 8,598 $ 1,505 $ 17 $ 1,166 $ 5,006 Derivative and other contracts — — 6 — 70 Total $ 8,598 $ 1,505 $ 23 $ 1,166 $ 5,076 Additional VIE assets owned 1 $ 12,231 At December 31, 2017 $ in millions MABS CDO MTOB OSF Other VIE assets (UPB) $ 89,288 $ 9,807 $ 5,306 $ 3,322 $ 31,934 Maximum exposure to loss Debt and equity interests $ 10,657 $ 1,384 $ 80 $ 1,628 $ 4,730 Derivative and other contracts — — 3,333 — 1,686 Commitments, guarantees and other 1,214 668 — 164 433 Total $ 11,871 $ 2,052 $ 3,413 $ 1,792 $ 6,849 Carrying value of exposure to loss—Assets Debt and equity interests $ 10,657 $ 1,384 $ 43 $ 1,202 $ 4,730 Derivative and other contracts — — 5 — 184 Total $ 10,657 $ 1,384 $ 48 $ 1,202 $ 4,914 Additional VIE assets owned 1 $ 11,318 MTOB— Municipal tender option bonds 1. Additional VIE Assets owned represents the carrying value of total exposure to non-consolidated VIEs for which the maximum exposure to loss is less than specific thresholds, primarily interests issued by securitization SPEs . Mortgage- and Asset-Backed Securitization Assets At September 30, 2018 At December 31, 2017 UPB Debt and Equity Interests UPB Debt and Equity Interests $ in millions Residential mortgages $ 9,299 $ 923 $ 15,636 $ 1,272 Commercial mortgages 39,554 1,289 46,464 2,331 U.S. agency collateralized mortgage obligations 14,176 2,822 16,223 3,439 Other consumer or commercial loans 10,783 3,564 10,965 3,615 Total $ 73,812 $ 8,598 $ 89,288 $ 10,657 |
Transfers of Assets with Continuing Involvement | Transfers of Assets with Continuing Involvement At September 30, 2018 RML CML U.S. Agency CMO CLN and Other 1 $ in millions SPE assets (UPB) 2 $ 14,775 $ 66,829 $ 14,793 $ 17,101 Retained interests Investment grade $ 18 $ 492 $ 850 $ 14 Non-investment grade (fair value) 3 119 — 359 Total $ 21 $ 611 $ 850 $ 373 Interests purchased in the secondary market (fair value) Investment grade $ 7 $ 141 $ 71 $ — Non-investment grade 51 47 — — Total $ 58 $ 188 $ 71 $ — Derivative assets (fair value) $ — $ — $ — $ 140 Derivative liabilities (fair value) — — — 136 At December 31, 2017 RML CML U.S. Agency CMO CLN and Other 1 $ in millions SPE assets(UPB) 2 $ 15,555 $ 62,744 $ 11,612 $ 17,060 Retained interests Investment grade $ — $ 293 $ 407 $ 4 Non-investment grade (fair value) 1 98 — 478 Total $ 1 $ 391 $ 407 $ 482 Interests purchased in the secondary market (fair value) Investment grade $ — $ 94 $ 439 $ — Non-investment grade 16 66 — 4 Total $ 16 $ 160 $ 439 $ 4 Derivative assets (fair value) $ 1 $ — $ — $ 226 Derivative liabilities (fair value) — — — 85 RML—Residential mortgage loans CML—Commercial mortgage loans 1. Amounts include CLO transactions managed by unrelated third parties. 2. Amounts include assets transferred by unrelated transferors . Fair Value at September 30, 2018 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 868 $ 56 $ 924 Non-investment grade 139 342 481 Total $ 1,007 $ 398 $ 1,405 Interests purchased in the secondary market Investment grade $ 208 $ 11 $ 219 Non-investment grade 88 10 98 Total $ 296 $ 21 $ 317 Derivative assets $ 28 $ 112 $ 140 Derivative liabilities 133 3 136 Fair Value at December 31, 2017 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 407 $ 4 $ 411 Non-investment grade 22 555 577 Total $ 429 $ 559 $ 988 Interests purchased in the secondary market Investment grade $ 531 $ 2 $ 533 Non-investment grade 57 29 86 Total $ 588 $ 31 $ 619 Derivative assets $ 78 $ 149 $ 227 Derivative liabilities 81 4 85 |
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 2018 2017 2018 2017 New transactions 1 $ 7,299 $ 6,875 $ 19,056 $ 17,622 Retained interests 584 648 2,222 1,607 Sales of corporate loans to CLO SPEs 1, 2 17 56 253 148 1. 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. 2. Sponsored by non-affiliates . |
Assets Sold with Retained Exposure | Assets Sold with Retained Exposure At September 30, At December 31, $ in millions 2018 2017 Carrying value of assets derecognized at the time of sale and gross cash proceeds $ 28,121 $ 19,115 Fair value Assets sold $ 28,820 $ 19,138 Derivative assets recognized in the balance sheets 826 176 Derivative liabilities recognized in the balance sheets 127 153 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | The Firm’s Regulatory Capital and Capital Ratios At September 30, 2018 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 8.6% $ 61,758 16.7% Tier 1 capital 10.1% 70,328 19.0% Total capital 12.1% 79,899 21.6% Total RWA 370,714 Leverage-based capital Tier 1 leverage 4.0% $ 70,328 8.2% Adjusted average assets 2 858,944 SLR 3 5.0% 70,328 6.4% Supplementary leverage exposure 4 1,101,263 At December 31, 2017 $ in millions Required Ratio 1 Amount Ratio 5 Risk-based capital Common Equity Tier 1 capital 7.3% $ 61,134 16.5% Tier 1 capital 8.8% 69,938 18.9% Total capital 10.8% 80,275 21.7% Total RWA 369,578 Leverage-based capital Tier 1 leverage 4.0% $ 69,938 8.3% Adjusted average assets 2 842,270 1. Percenta ges represent minimum required regulatory capital ratios —for risk-based capital, the ratios are under the transitional rules. 2 . Adjusted average assets represent s the denominator of t he Tier 1 leverage ratio and is 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, 2017 , adjusted for disallowed goodwill, intangible assets, certain deferred tax assets, certain investments in the capital instruments of unconsolidated financial institutions and other adjustments. 3 . The SLR became effective as a capital standard on January 1, 2018. 4 . Supplementary Leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily (i) potential future exposure for derivative exposures, gross-up for cash collateral netting where qualifying criteria are not met, and the effective notional principal amount of sold credit protection offset by qualifying pur chased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures. 5 . For risk- and leverage-based capital, r egulatory compliance was determined based on capital ratios calculated under the transitional rules until December 31, 2017. |
MSBNA | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | MSBNA’s Regulatory Capital At September 30, 2018 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 6.5% $ 15,683 20.4% Tier 1 capital 8.0% 15,683 20.4% Total capital 10.0% 15,933 20.7% Leverage-based capital Tier 1 leverage 5.0% $ 15,683 10.9% SLR 2 6.0% 15,683 8.5% At December 31, 2017 $ in millions Required Ratio 1 Amount Ratio 3 Risk-based capital Common Equity Tier 1 capital 6.5% $ 15,196 20.5% Tier 1 capital 8.0% 15,196 20.5% Total capital 10.0% 15,454 20.8% Leverage-based capital Tier 1 leverage 5.0% $ 15,196 11.8% 1. Ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. 2. The SLR became effective as a capital standard on January 1, 2018. 3. For risk- and leverage-based capital, r egulatory compliance was determined based on capital ratios calculated under the transitional rules until December 31, 2017 . |
MSPBNA | |
Regulatory Requirements | |
Schedule of Regulatory Capital and Capital Ratios | MSPBNA’s Regulatory Capital At September 30, 2018 $ in millions Required Ratio 1 Amount Ratio Risk-based capital Common Equity Tier 1 capital 6.5% $ 6,841 25.0% Tier 1 capital 8.0% 6,841 25.0% Total capital 10.0% 6,886 25.1% Leverage-based capital Tier 1 leverage 5.0% $ 6,841 9.7% SLR 2 6.0% 6,841 9.4% At December 31, 2017 $ in millions Required Ratio 1 Amount Ratio 3 Risk-based capital Common Equity Tier 1 capital 6.5% $ 6,215 24.4% Tier 1 capital 8.0% 6,215 24.4% Total capital 10.0% 6,258 24.6% Leverage-based capital Tier 1 leverage 5.0% $ 6,215 9.7% 1. Ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes. 2. The SLR became effective as a capital standard on January 1, 2018. 3. For risk- and leverage-based capital, r egulatory compliance was determined based on capital ratios calculated under the transitional rules until December 31, 2017 . |
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, 2018 At December 31, 2017 Net capital $ 12,627 $ 10,142 Excess net capital 10,253 8,018 |
MSSB LLC | |
Regulatory Requirements | |
Schedule of Broker-Dealer Regulatory Capital Requirements | MSSB LLC Regulatory Capital $ in millions At September 30, 2018 At December 31, 2017 Net capital $ 3,030 $ 2,567 Excess net capital 2,864 2,400 |
Total Equity (Tables)
Total Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Total Equity | |
Repurchases of Common Stock | Share Repurchases Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Repurchases of common stock under the Firm's share repurchase program $ 1,180 $ 1,250 $ 3,680 $ 2,500 |
Preferred Stock | Preferred Stock Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Dividends declared $ 93 $ 93 $ 356 $ 353 Preferred Stock Outstanding Shares Outstanding Carrying Value At Liquidation At At $ in millions, except per share data September 30, Preference September 30, December 31, 2018 per Share 2018 2017 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 1,000 Total $ 8,520 $ 8,520 1. Series C is composed of the issuance of 1,160,791 shares of Series C Preferred Stock to MUFG for an aggregate purchase price of $ 911 million, less the redemption of 640,909 shares of Series C Preferred Stock of $ 503 million, which were converted to common shares of approximately $ 705 million. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) 1 $ in millions Foreign Currency Translation Adjustments AFS Securities Pension, Postretirement and Other DVA Total June 30, 2018 $ (864) $ (1,194) $ (704) $ (308) $ (3,070) OCI during the period (54) (171) 5 (709) (929) September 30, 2018 $ (918) $ (1,365) $ (699) $ (1,017) $ (3,999) 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) December 31, 2017 $ (767) $ (547) $ (591) $ (1,155) $ (3,060) Cumulative adjustment for accounting changes 2 (8) (111) (124) (194) (437) OCI during the period (143) (707) 16 332 (502) September 30, 2018 $ (918) $ (1,365) $ (699) $ (1,017) $ (3,999) 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) 1. Amounts net of tax and noncontrolling interests. 2. The cumulative adjustment for accounting change s is primarily the effect of the adoption of the accounting update Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This adjustment was recorded as of January 1, 2018 to reclassify certain income tax effects related to enactment of the Tax Act from AOCI to Retained earnings, primarily related to the remeasurement of deferred tax assets and liabilities resulting from the reduction in corporate income tax rate to 21%. See Note 2 for further information. |
Period Changes in OCI Components | Components of Period Changes in OCI Three Months Ended September 30, 2018 $ in millions Pre-tax Gain (Loss) Income Tax Benefit (Provision) After-tax Gain (Loss) Non-controlling Interests Net Foreign currency translation adjustments OCI activity $ (44) $ (35) $ (79) $ (25) $ (54) Reclassified to earnings — — — — — Net OCI $ (44) $ (35) $ (79) $ (25) $ (54) Change in net unrealized gains (losses) on AFS securities OCI activity $ (219) $ 51 $ (168) $ — $ (168) Reclassified to earnings (5) 2 (3) — (3) Net OCI $ (224) $ 53 $ (171) $ — $ (171) Pension, postretirement and other OCI activity $ — $ — $ — $ — $ — Reclassified to earnings 7 (2) 5 — 5 Net OCI $ 7 $ (2) $ 5 $ — $ 5 Change in net DVA OCI activity $ (1,018) $ 248 $ (770) $ (34) $ (736) Reclassified to earnings 36 (9) 27 — 27 Net OCI $ (982) $ 239 $ (743) $ (34) $ (709) 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 (11) 4 (7) — (7) Net OCI $ 41 $ (15) $ 26 $ — $ 26 Pension, postretirement and other OCI activity $ — $ — $ — $ — $ — Reclassified to earnings 1 (1) — — — Net OCI $ 1 $ (1) $ — $ — $ — Change in net DVA OCI activity $ (220) $ 77 $ (143) $ (6) $ (137) Reclassified to earnings (9) 3 (6) — (6) Net OCI $ (229) $ 80 $ (149) $ (6) $ (143) Nine Months Ended September 30, 2018 1 $ in millions Pre-tax Gain (Loss) Income Tax Benefit (Provision) After-tax Gain (Loss) Non-controlling Interests Net Foreign currency translation adjustments OCI activity $ (52) $ (102) $ (154) $ (11) $ (143) Reclassified to earnings — — — — — Net OCI $ (52) $ (102) $ (154) $ (11) $ (143) Change in net unrealized gains (losses) on AFS securities OCI activity $ (916) $ 215 $ (701) $ — $ (701) Reclassified to earnings (8) 2 (6) — (6) Net OCI $ (924) $ 217 $ (707) $ — $ (707) Pension, postretirement and other OCI activity $ 2 $ — $ 2 $ — $ 2 Reclassified to earnings 19 (5) 14 — 14 Net OCI $ 21 $ (5) $ 16 $ — $ 16 Change in net DVA OCI activity $ 403 $ (97) $ 306 $ 15 $ 291 Reclassified to earnings 54 (13) 41 — 41 Net OCI $ 457 $ (110) $ 347 $ 15 $ 332 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 (27) 10 (17) — (17) Net OCI $ 347 $ (129) $ 218 $ — $ 218 Pension, postretirement and other OCI activity $ 3 $ — $ 3 $ — $ 3 Reclassified to earnings 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 — — — Net OCI $ (499) $ 176 $ (323) $ (9) $ (314) 1. Exclusive of 2018 cumulative adjustments related to the adoption of certain accounting updates in the current year period. Refer to the table below and Note 2 for further information. |
Cumulative Adjustments to Retained Earnings | Cumulative Adjustments to Retained Earnings Related to Adoption of Accounting Updates Nine Months Ended $ in millions September 30, 2018 Revenue from contracts with customers $ (32) Derivatives and hedging‒targeted improvements to accounting for hedging activities (99) Reclassification of certain tax effects from AOCI 443 Other 1 (6) Total $ 306 Nine Months Ended $ in millions September 30, 2017 Improvements to employee share-based payment accounting 2 (30) Intra-entity transfers of assets other than inventory (5) Total $ (35) 1. Other includes the adoption of accounting updates related to Recognition and Measurement of Financial Assets and Financial Liabilities (other than the provision around presentin g unrealized DVA in OCI which the Firm early adopted in 2016) and Derecognition of Nonfinancial Assets . The impact of these adoptions on Retained earnings was not significant. 2. See Note 2 to the 2017 Form 10-K for further information. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 2018 2017 2018 2017 Basic EPS Income from continuing operations $ 2,155 $ 1,785 $ 7,330 $ 5,574 Income (loss) from discontinued operations (1) 6 (5) (21) Net income 2,154 1,791 7,325 5,553 Net income applicable to noncontrolling interests 42 10 108 85 Net income applicable to Morgan Stanley 2,112 1,781 7,217 5,468 Preferred stock dividends and other 93 93 356 353 Earnings applicable to Morgan Stanley common shareholders $ 2,019 $ 1,688 $ 6,861 $ 5,115 Weighted average common shares outstanding 1,697 1,776 1,719 1,789 Earnings per basic common share Income from continuing operations $ 1.19 $ 0.95 $ 3.99 $ 2.87 Income (loss) from discontinued operations — — — (0.01) Earnings per basic common share $ 1.19 $ 0.95 $ 3.99 $ 2.86 Diluted EPS Earnings applicable to Morgan Stanley common shareholders $ 2,019 $ 1,688 $ 6,861 $ 5,115 Weighted average common shares outstanding 1,697 1,776 1,719 1,789 Effect of dilutive securities: Stock options and RSUs 30 42 30 41 Weighted average common shares outstanding and common stock equivalents 1,727 1,818 1,749 1,830 Earnings per diluted common share Income from continuing operations $ 1.17 $ 0.93 $ 3.92 $ 2.81 Income (loss) from discontinued operations — — — (0.02) Earnings per diluted common share $ 1.17 $ 0.93 $ 3.92 $ 2.79 Weighted average antidilutive RSUs and stock options (excluded from the computation of diluted EPS) 1 — 1 — |
Interest Income and Interest _2
Interest Income and Interest Expense (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 2018 2017 2018 2017 Interest income Investment securities $ 440 $ 313 $ 1,281 $ 943 Loans 1,085 853 3,097 2,399 Securities purchased under agreements to resell and Securities borrowed 1 575 76 1,156 86 Trading assets, net of Trading liabilities 571 506 1,687 1,461 Customer receivables and Other 2 956 592 2,560 1,522 Total interest income $ 3,627 $ 2,340 $ 9,781 $ 6,411 Interest expense Deposits $ 377 $ 63 $ 809 $ 88 Borrowings 1,287 1,109 3,683 3,197 Securities sold under agreements to repurchase and Securities loaned 3 478 325 1,326 912 Customer payables and Other 4 549 60 1,146 (91) Total interest expense $ 2,691 $ 1,557 $ 6,964 $ 4,106 Net interest $ 936 $ 783 $ 2,817 $ 2,305 1. Includes fees paid on Securities borrowed . 2 . Inclu des interest from Customer receivables and Cash and cash equivalents . 3 . Includes fees received on Securities loaned. 4 . Includes fees received from prime brokerage customers for stock loan transactions incurred to cover customers’ short positions. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Employee Benefit Plans | |
Components of Net Periodic Benefit Expense (Income) for Pension and Other Postretirement Plans | Components of Net Periodic Benefit Expense (Income) for Pension and Other Postretirement Plans Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Service cost, benefits earned during the period $ 4 $ 4 $ 12 $ 12 Interest cost on projected benefit obligation 34 37 103 112 Expected return on plan assets (29) (29) (85) (87) Net amortization of prior service credit (1) (4) (1) (12) Net amortization of actuarial loss 8 4 20 12 Net periodic benefit expense (income) $ 16 $ 12 $ 49 $ 37 |
Segment, Geographic and Reven_2
Segment, Geographic and Revenue Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Selected Financial Information by Business Segment | Selected Financial Information by Business Segment Three Months Ended September 30, 2018 $ in millions IS WM IM I/E Total Investment banking 1, 2 $ 1,459 $ 129 $ — $ (21) $ 1,567 Trading 2,573 160 2 17 2,752 Investments 96 — 40 — 136 Commissions and fees 1 589 409 — (66) 932 Asset management 1 112 2,573 604 (38) 3,251 Other 244 58 (3) (1) 298 Total non-interest revenues 3, 4 5,073 3,329 643 (109) 8,936 Interest income 2,425 1,412 19 (229) 3,627 Interest expense 2,569 342 9 (229) 2,691 Net interest (144) 1,070 10 — 936 Net revenues $ 4,929 $ 4,399 $ 653 $ (109) $ 9,872 Income from continuing operations before income taxes $ 1,556 $ 1,194 $ 102 $ (1) $ 2,851 Provision for income taxes 397 281 18 — 696 Income from continuing operations 1,159 913 84 (1) 2,155 Income (loss) from discontinued operations, net of income taxes (3) — 2 — (1) Net income 1,156 913 86 (1) 2,154 Net income applicable to noncontrolling interests 36 — 6 — 42 Net income applicable to Morgan Stanley $ 1,120 $ 913 $ 80 $ (1) $ 2,112 Three Months Ended September 30, 2017 $ in millions IS WM IM I/E Total Investment banking $ 1,270 $ 125 $ — $ (15) $ 1,380 Trading 2,504 212 (7) (5) 2,704 Investments 52 1 114 — 167 Commissions and fees 561 402 — (26) 937 Asset management 88 2,393 568 (23) 3,026 Other 143 62 1 (6) 200 Total non-interest revenues 4,618 3,195 676 (75) 8,414 Interest income 1,421 1,155 1 (237) 2,340 Interest expense 1,663 130 2 (238) 1,557 Net interest (242) 1,025 (1) 1 783 Net revenues $ 4,376 $ 4,220 $ 675 $ (74) $ 9,197 Income from continuing operations before income taxes $ 1,236 $ 1,119 $ 131 $ (4) $ 2,482 Provision for income taxes 260 421 16 — 697 Income from continuing operations 976 698 115 (4) 1,785 Income (loss) from discontinued operations, net of income taxes 6 — — — 6 Net income 982 698 115 (4) 1,791 Net income applicable to noncontrolling interests 9 — 1 — 10 Net income applicable to Morgan Stanley $ 973 $ 698 $ 114 $ (4) $ 1,781 Nine Months Ended September 30, 2018 $ in millions IS WM IM I/E Total Investment banking 1, 2 $ 4,671 $ 383 $ — $ (60) $ 4,994 Trading 9,344 404 23 44 9,815 Investments 234 3 172 — 409 Commissions and fees 1 2,007 1,349 — (212) 3,144 Asset management 1 324 7,582 1,840 (114) 9,632 Other 548 195 10 (5) 748 Total non-interest revenues 3, 4 17,128 9,916 2,045 (347) 28,742 Interest income 6,424 4,012 37 (692) 9,781 Interest expense 6,809 830 20 (695) 6,964 Net interest (385) 3,182 17 3 2,817 Net revenues $ 16,743 $ 13,098 $ 2,062 $ (344) $ 31,559 Income from continuing operations before income taxes $ 5,480 $ 3,511 $ 390 $ (1) $ 9,380 Provision for income taxes 1,169 808 73 — 2,050 Income from continuing operations 4,311 2,703 317 (1) 7,330 Income (loss) from discontinued operations, net of income taxes (7) — 2 — (5) Net income 4,304 2,703 319 (1) 7,325 Net income applicable to noncontrolling interests 100 — 8 — 108 Net income applicable to Morgan Stanley $ 4,204 $ 2,703 $ 311 $ (1) $ 7,217 Nine Months Ended September 30, 2017 $ in millions IS WM IM I/E Total Investment banking $ 4,100 $ 405 $ — $ (50) $ 4,455 Trading 8,241 657 (21) (7) 8,870 Investments 155 3 337 — 495 Commissions and fees 1,811 1,266 — (80) 2,997 Asset management 268 6,879 1,624 (76) 8,695 Other 442 191 9 (14) 628 Total non-interest revenues 15,017 9,401 1,949 (227) 26,140 Interest income 3,788 3,348 3 (728) 6,411 Interest expense 4,515 320 3 (732) 4,106 Net interest (727) 3,028 — 4 2,305 Net revenues $ 14,290 $ 12,429 $ 1,949 $ (223) $ 28,445 Income from continuing operations before income taxes $ 4,409 $ 3,149 $ 376 $ (2) $ 7,932 Provision for income taxes 1,132 1,139 87 — 2,358 Income from continuing operations 3,277 2,010 289 (2) 5,574 Income (loss) from discontinued operations, net of income taxes (21) — — — (21) Net income 3,256 2,010 289 (2) 5,553 Net income applicable to noncontrolling interests 77 — 8 — 85 Net income applicable to Morgan Stanley $ 3,179 $ 2,010 $ 281 $ (2) $ 5,468 I/E–Intersegment Eliminations 1. Approximately 85 % of Investment banking revenues and substantially all of Commissions and fees and Asset management revenues in the current quarter and current year period were determined under the Revenues from Contracts with Customers accounting update. 2. Current quarter Institutional Securities Investment b anking revenues are composed of $ 510 million of Advisory and $ 949 million of Underwriting revenues. Current year period Institutional Securities Investment banking revenues are composed of $ 1,702 million of Advisory and $ 2,969 million of Underwriting revenues. 3. The Firm enters into certain contracts which contain a current obligation to perform services in th e future. Excluding contracts where billing is commensurate with the value of the services performed at each stage of the contract, contracts with variable consideration that is subject to reversal, and contracts with less than one year duration, we expect to record t he following approximate revenues in the future: $ 25 million in the remainder of 2018; $ 100 million per year over the next t wo years; and between $ 10 million and $ 50 million per year thereafter through 2035 . These revenues are primarily related to certain commodities contracts with customers. 4. Includes $ 804 million and $ 2,192 million in r evenue recognized in the current quarter and current year period, respectively, where some or all services were performed in prior periods . This amount is pri marily composed of investment banking advisory fees, and distribution fees. |
Total Assets by Business Segment | Total Assets by Business Segment At At September 30, December 31, $ in millions 2018 2017 Institutional Securities $ 671,508 $ 664,974 Wealth Management 188,166 182,009 Investment Management 5,843 4,750 Total 1 $ 865,517 $ 851,733 1. Parent assets have been fully a llocated to the business segments. |
Net Unrealized Performance-based Fees and Fee Waivers | Net Unrealized Performance-based Fees At At September 30, December 31, $ in millions 2018 2017 Net cumulative unrealized performance-based fees at risk of reversing $ 406 $ 442 Reduction of Fees due to Fee Waivers Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Fee waivers $ 11 $ 20 $ 45 $ 66 |
Net Revenues by Region | Net Revenues by Region Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Americas $ 7,357 $ 6,833 $ 22,989 $ 20,667 EMEA 1,355 1,325 4,892 4,420 Asia 1,160 1,039 3,678 3,358 Total $ 9,872 $ 9,197 $ 31,559 $ 28,445 |
Trading Revenues by Product Type | Trading Revenues by Product Type Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2018 2017 2018 2017 Interest rate contracts $ 744 $ 648 $ 2,396 $ 1,693 Foreign exchange contracts 223 181 622 613 Equity security and index contracts 1 1,432 1,416 5,094 4,875 Commodity and other contracts 254 223 1,047 522 Credit contracts 99 236 656 1,167 Total $ 2,752 $ 2,704 $ 9,815 $ 8,870 1. Dividend income is inclu ded within equity security and index contracts. |
Change in Revenue as a Result of Application of the New Revenue Recognition Standard | Change in Revenue and Expense as a Result of Application of the New Revenue Recognition Standard Three Nine Months Ended Months Ended $ in millions September 30, 2018 September 30, 2018 Gross presentation impact—Revenue Investment banking— Advisory $ 12 $ 56 Underwriting 59 161 Asset management 8 22 Other 14 41 Subtotal 93 280 Gross presentation impact—Expense Brokerage, clearing and exchange fees $ 8 $ 22 Marketing and business development 8 20 Professional services 39 93 Other 1 38 145 Subtotal 93 280 Timing impact—Revenue Investment banking— Advisory (2) 13 Asset management (15) (31) Other 5 10 Subtotal (12) (8) Net change in revenue and expense $ (12) $ (8) 1. Primarily composed of Investment banking transa ction-related costs. |
Receivables from Contracts with Customers | Receivables from Contracts with Customers At At September 30, January 1, $ in millions 2018 2018 Customer and other receivables $ 2,418 $ 2,805 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ in Millions | Jan. 01, 2018USD ($) |
Revenue from Contracts with Customers | |
Accounting Standards Adopted | |
Cumulative catch-up adjustment to Retained Earnings | $ (32) |
Derivatives and Hedging-Targeted Improvements to Accounting for Hedging Activities | |
Accounting Standards Adopted | |
Cumulative catch-up adjustment to Retained Earnings | (99) |
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | |
Accounting Standards Adopted | |
Cumulative catch-up adjustment to Retained Earnings | $ 443 |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets at Fair Value | ||
Total trading assets | $ 283,188 | $ 298,282 |
Investment securities - AFS | 57,232 | 55,203 |
Liabilities at Fair Value | ||
Deposits | 382 | 204 |
Securities sold under agreements to repurchase | 784 | 800 |
Other secured financings | 4,554 | 3,863 |
Borrowings | 50,506 | 46,912 |
Recurring | ||
Assets at Fair Value | ||
U.S. treasury and agency securities | 49,766 | 48,965 |
Other sovereign government obligations | 31,750 | 28,060 |
State and municipal securities | 3,006 | 3,600 |
MABS | 2,968 | 2,787 |
Loans and lending commitments | 12,766 | 10,736 |
Corporate and other debt | 22,432 | 17,538 |
Corporate equities | 125,547 | 150,355 |
Derivative and other contracts | 30,639 | 30,813 |
Netting | (259,940) | (267,598) |
Counterparty and cash collateral netting | (45,862) | (47,171) |
Investments | 1,676 | 1,840 |
Physical commodities | 226 | 1,024 |
Total trading assets | 280,776 | 295,718 |
Investment securities - AFS | 57,232 | 55,203 |
Intangible assets | 3 | 3 |
Total assets at fair value | 338,011 | 350,924 |
Liabilities at Fair Value | ||
Deposits | 382 | 204 |
U.S. treasury and agency securities | 14,414 | 17,826 |
Other sovereign government obligations | 20,549 | 26,873 |
Corporate and other debt | 8,422 | 7,144 |
Corporate equities | 59,821 | 52,757 |
Derivative and other contracts | 25,826 | 26,695 |
Netting | (247,549) | (257,144) |
Counterparty and cash collateral netting | (33,471) | (36,717) |
Total trading liabilities | 129,032 | 131,295 |
Securities sold under agreements to repurchase | 784 | 800 |
Other secured financings | 4,554 | 3,863 |
Borrowings | 50,506 | 46,912 |
Total liabilities at fair value | 185,258 | 183,074 |
Recurring | Futures Contracts | Customer and Other Receivables, Net | ||
Additional Fair Value Disclosure | ||
Derivative assets, unsettled fair value | 660 | 831 |
Recurring | Corporate Loans | ||
Assets at Fair Value | ||
Loans and lending commitments | 9,489 | 8,358 |
Recurring | Residential Real Estate Loans | ||
Assets at Fair Value | ||
Loans and lending commitments | 912 | 799 |
Recurring | Wholesale Real Estate Loans | ||
Assets at Fair Value | ||
Loans and lending commitments | 2,365 | 1,579 |
Recurring | Interest Rates | ||
Assets at Fair Value | ||
Derivative and other contracts | 159,665 | 180,939 |
Liabilities at Fair Value | ||
Derivative and other contracts | 143,328 | 163,148 |
Borrowings | 22,101 | 19,230 |
Recurring | Credit | ||
Assets at Fair Value | ||
Derivative and other contracts | 6,156 | 8,022 |
Liabilities at Fair Value | ||
Derivative and other contracts | 6,551 | 8,545 |
Borrowings | 863 | 815 |
Recurring | Foreign Exchange | ||
Assets at Fair Value | ||
Derivative and other contracts | 63,729 | 53,797 |
Liabilities at Fair Value | ||
Derivative and other contracts | 61,728 | 55,268 |
Borrowings | 504 | 666 |
Recurring | Equity | ||
Assets at Fair Value | ||
Derivative and other contracts | 49,918 | 44,990 |
Liabilities at Fair Value | ||
Derivative and other contracts | 51,387 | 47,989 |
Borrowings | 25,049 | 25,903 |
Recurring | Commodity and Other | ||
Assets at Fair Value | ||
Derivative and other contracts | 11,111 | 10,663 |
Liabilities at Fair Value | ||
Derivative and other contracts | 10,381 | 8,889 |
Recurring | Level 1 | ||
Assets at Fair Value | ||
U.S. treasury and agency securities | 25,578 | 22,077 |
Other sovereign government obligations | 26,698 | 20,234 |
State and municipal securities | 0 | 0 |
MABS | 0 | 0 |
Loans and lending commitments | 0 | 0 |
Corporate and other debt | 0 | 0 |
Corporate equities | 125,028 | 149,697 |
Derivative and other contracts | 1,263 | 669 |
Netting | (4,417) | (2,088) |
Investments | 603 | 297 |
Physical commodities | 0 | 0 |
Total trading assets | 179,170 | 192,974 |
Investment securities - AFS | 32,846 | 27,522 |
Intangible assets | 0 | 0 |
Total assets at fair value | 212,016 | 220,496 |
Liabilities at Fair Value | ||
Deposits | 0 | 0 |
U.S. treasury and agency securities | 14,169 | 17,802 |
Other sovereign government obligations | 18,779 | 24,857 |
Corporate and other debt | 0 | 0 |
Corporate equities | 59,630 | 52,653 |
Derivative and other contracts | 1,184 | 332 |
Netting | (4,417) | (2,088) |
Total trading liabilities | 93,762 | 95,644 |
Securities sold under agreements to repurchase | 0 | 0 |
Other secured financings | 0 | 0 |
Borrowings | 0 | 0 |
Total liabilities at fair value | 93,762 | 95,644 |
Recurring | Level 1 | Interest Rates | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,883 | 472 |
Liabilities at Fair Value | ||
Derivative and other contracts | 1,860 | 364 |
Recurring | Level 1 | Credit | ||
Assets at Fair Value | ||
Derivative and other contracts | 0 | 0 |
Liabilities at Fair Value | ||
Derivative and other contracts | 0 | 0 |
Recurring | Level 1 | Foreign Exchange | ||
Assets at Fair Value | ||
Derivative and other contracts | 72 | 58 |
Liabilities at Fair Value | ||
Derivative and other contracts | 12 | 23 |
Recurring | Level 1 | Equity | ||
Assets at Fair Value | ||
Derivative and other contracts | 3,206 | 1,101 |
Liabilities at Fair Value | ||
Derivative and other contracts | 3,070 | 1,001 |
Recurring | Level 1 | Commodity and Other | ||
Assets at Fair Value | ||
Derivative and other contracts | 519 | 1,126 |
Liabilities at Fair Value | ||
Derivative and other contracts | 659 | 1,032 |
Recurring | Level 2 | ||
Assets at Fair Value | ||
U.S. treasury and agency securities | 24,183 | 26,888 |
Other sovereign government obligations | 5,016 | 7,825 |
State and municipal securities | 3,002 | 3,592 |
MABS | 2,652 | 2,364 |
Loans and lending commitments | 6,031 | 4,791 |
Corporate and other debt | 21,722 | 16,837 |
Corporate equities | 413 | 492 |
Derivative and other contracts | 70,092 | 69,015 |
Netting | (208,658) | (216,764) |
Investments | 255 | 523 |
Physical commodities | 226 | 1,024 |
Total trading assets | 133,592 | 133,351 |
Investment securities - AFS | 24,386 | 27,681 |
Intangible assets | 3 | 3 |
Total assets at fair value | 157,981 | 161,035 |
Liabilities at Fair Value | ||
Deposits | 309 | 157 |
U.S. treasury and agency securities | 245 | 24 |
Other sovereign government obligations | 1,770 | 2,016 |
Corporate and other debt | 8,421 | 7,141 |
Corporate equities | 178 | 82 |
Derivative and other contracts | 53,870 | 58,581 |
Netting | (208,658) | (216,764) |
Total trading liabilities | 64,484 | 67,844 |
Securities sold under agreements to repurchase | 784 | 650 |
Other secured financings | 4,382 | 3,624 |
Borrowings | 46,886 | 43,928 |
Total liabilities at fair value | 116,845 | 116,203 |
Recurring | Level 2 | Interest Rates | ||
Assets at Fair Value | ||
Derivative and other contracts | 156,753 | 178,704 |
Liabilities at Fair Value | ||
Derivative and other contracts | 141,016 | 162,239 |
Recurring | Level 2 | Credit | ||
Assets at Fair Value | ||
Derivative and other contracts | 5,740 | 7,602 |
Liabilities at Fair Value | ||
Derivative and other contracts | 6,156 | 8,166 |
Recurring | Level 2 | Foreign Exchange | ||
Assets at Fair Value | ||
Derivative and other contracts | 63,647 | 53,724 |
Liabilities at Fair Value | ||
Derivative and other contracts | 61,662 | 55,118 |
Recurring | Level 2 | Equity | ||
Assets at Fair Value | ||
Derivative and other contracts | 45,505 | 40,359 |
Liabilities at Fair Value | ||
Derivative and other contracts | 45,439 | 44,666 |
Recurring | Level 2 | Commodity and Other | ||
Assets at Fair Value | ||
Derivative and other contracts | 7,105 | 5,390 |
Liabilities at Fair Value | ||
Derivative and other contracts | 8,255 | 5,156 |
Recurring | Level 3 | ||
Assets at Fair Value | ||
U.S. treasury and agency securities | 5 | 0 |
Other sovereign government obligations | 36 | 1 |
State and municipal securities | 4 | 8 |
MABS | 316 | 423 |
Loans and lending commitments | 6,735 | 5,945 |
Corporate and other debt | 710 | 701 |
Corporate equities | 106 | 166 |
Derivative and other contracts | 5,146 | 8,300 |
Netting | (1,003) | (1,575) |
Investments | 818 | 1,020 |
Physical commodities | 0 | 0 |
Total trading assets | 13,876 | 16,564 |
Investment securities - AFS | 0 | 0 |
Intangible assets | 0 | 0 |
Total assets at fair value | 13,876 | 16,564 |
Liabilities at Fair Value | ||
Deposits | 73 | 47 |
U.S. treasury and agency securities | 0 | 0 |
Other sovereign government obligations | 0 | 0 |
Corporate and other debt | 1 | 3 |
Corporate equities | 13 | 22 |
Derivative and other contracts | 4,243 | 4,499 |
Netting | (1,003) | (1,575) |
Total trading liabilities | 4,257 | 4,524 |
Securities sold under agreements to repurchase | 0 | 150 |
Other secured financings | 172 | 239 |
Borrowings | 3,620 | 2,984 |
Total liabilities at fair value | 8,122 | 7,944 |
Recurring | Level 3 | Interest Rates | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,029 | 1,763 |
Liabilities at Fair Value | ||
Derivative and other contracts | 452 | 545 |
Recurring | Level 3 | Credit | ||
Assets at Fair Value | ||
Derivative and other contracts | 416 | 420 |
Liabilities at Fair Value | ||
Derivative and other contracts | 395 | 379 |
Recurring | Level 3 | Foreign Exchange | ||
Assets at Fair Value | ||
Derivative and other contracts | 10 | 15 |
Liabilities at Fair Value | ||
Derivative and other contracts | 54 | 127 |
Recurring | Level 3 | Equity | ||
Assets at Fair Value | ||
Derivative and other contracts | 1,207 | 3,530 |
Liabilities at Fair Value | ||
Derivative and other contracts | 2,878 | 2,322 |
Recurring | Level 3 | Commodity and Other | ||
Assets at Fair Value | ||
Derivative and other contracts | 3,487 | 4,147 |
Liabilities at Fair Value | ||
Derivative and other contracts | $ 1,467 | $ 2,701 |
Fair Value Disclosures (Rollfor
Fair Value Disclosures (Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Recurring - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Trading Assets | Equity | ||||
Liabilities | ||||
Amount of assets transferred from Level 3 to Level 2 | $ 2,400 | |||
Level 3 | Deposits | ||||
Liabilities | ||||
Beginning balance | $ 37 | $ 79 | 47 | $ 42 |
Realized and unrealized (gains) losses | 2 | 1 | (1) | 2 |
Purchases | 0 | 0 | 0 | 0 |
Sales and Issuances | 11 | 32 | 27 | 62 |
Settlements | 0 | 0 | (2) | 0 |
Net transfers | 23 | (6) | 2 | 0 |
Ending balance | 73 | 106 | 73 | 106 |
Unrealized gains (losses) | (2) | (1) | 1 | (2) |
Level 3 | Securities Sold Under Agreements to Repurchase | ||||
Liabilities | ||||
Beginning balance | 148 | 150 | 149 | |
Realized and unrealized (gains) losses | 1 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales and Issuances | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | |
Net transfers | 0 | (150) | 0 | |
Ending balance | 0 | 149 | 0 | 149 |
Unrealized gains (losses) | (1) | 0 | 1 | |
Level 3 | Other Secured Financings | ||||
Liabilities | ||||
Beginning balance | 170 | 244 | 239 | 434 |
Realized and unrealized (gains) losses | 2 | 5 | (16) | 28 |
Purchases | 0 | 0 | 0 | 0 |
Sales and Issuances | 0 | 2 | 8 | 54 |
Settlements | 0 | (1) | (18) | (223) |
Net transfers | 0 | 0 | (41) | (43) |
Ending balance | 172 | 250 | 172 | 250 |
Unrealized gains (losses) | (2) | (5) | 16 | (21) |
Level 3 | Borrowings | ||||
Liabilities | ||||
Beginning balance | 3,295 | 2,646 | 2,984 | 2,014 |
Realized and unrealized (gains) losses | 56 | 53 | (156) | 142 |
Purchases | 0 | 0 | 0 | 0 |
Sales and Issuances | 344 | 679 | 1,275 | 1,418 |
Settlements | (81) | (49) | (339) | (328) |
Net transfers | 6 | (726) | (144) | (643) |
Ending balance | 3,620 | 2,603 | 3,620 | 2,603 |
Unrealized gains (losses) | (55) | (47) | 168 | (136) |
Level 3 | Trading Assets | U.S. Treasury and Agency Securities | ||||
Assets | ||||
Beginning balance | 0 | 0 | 74 | |
Realized and unrealized gains (losses) | 0 | 0 | (1) | |
Purchases | 5 | 5 | 0 | |
Sales and issuances | 0 | 0 | (240) | |
Settlements | 0 | 0 | 0 | |
Net transfers | 0 | 0 | 167 | |
Ending balance | 5 | 0 | 5 | 0 |
Unrealized gains (losses) | 0 | 0 | 0 | |
Level 3 | Trading Assets | Other Sovereign Government Obligations | ||||
Assets | ||||
Beginning balance | 5 | 100 | 1 | 6 |
Realized and unrealized gains (losses) | 0 | 2 | 0 | 0 |
Purchases | 32 | 86 | 35 | 104 |
Sales and issuances | (2) | (82) | 0 | (5) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 1 | (2) | 0 | (1) |
Ending balance | 36 | 104 | 36 | 104 |
Unrealized gains (losses) | 0 | 1 | 0 | 0 |
Level 3 | Trading Assets | State and Municipal Securities | ||||
Assets | ||||
Beginning balance | 2 | 9 | 8 | 250 |
Realized and unrealized gains (losses) | 0 | 0 | 0 | 3 |
Purchases | 2 | 4 | 3 | 6 |
Sales and issuances | 0 | (3) | (7) | (81) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 0 | 0 | 0 | (168) |
Ending balance | 4 | 10 | 4 | 10 |
Unrealized gains (losses) | 0 | 0 | 0 | 0 |
Level 3 | Trading Assets | MABS | ||||
Assets | ||||
Beginning balance | 327 | 264 | 423 | 217 |
Realized and unrealized gains (losses) | (1) | 4 | 88 | 49 |
Purchases | 23 | 52 | 73 | 120 |
Sales and issuances | (46) | (54) | (317) | (120) |
Settlements | (14) | 0 | (16) | (16) |
Net transfers | 27 | 8 | 65 | 24 |
Ending balance | 316 | 274 | 316 | 274 |
Unrealized gains (losses) | (8) | 1 | (6) | 13 |
Level 3 | Trading Assets | Loans and Lending Commitments | ||||
Assets | ||||
Beginning balance | 6,923 | 4,864 | 5,945 | 5,122 |
Realized and unrealized gains (losses) | 17 | 25 | 16 | 88 |
Purchases | 2,076 | 1,772 | 4,030 | 2,470 |
Sales and issuances | (1,184) | (1,431) | (978) | (1,927) |
Settlements | (777) | (236) | (1,926) | (964) |
Net transfers | (320) | (129) | (352) | 76 |
Ending balance | 6,735 | 4,865 | 6,735 | 4,865 |
Unrealized gains (losses) | 12 | 17 | (8) | 85 |
Level 3 | Trading Assets | Corporate and Other Debt | ||||
Assets | ||||
Beginning balance | 701 | 693 | 701 | 475 |
Realized and unrealized gains (losses) | (4) | 41 | 51 | 67 |
Purchases | 109 | 220 | 276 | 437 |
Sales and issuances | (153) | (241) | (227) | (383) |
Settlements | (6) | (4) | (8) | (7) |
Net transfers | 63 | (21) | (83) | 99 |
Ending balance | 710 | 688 | 710 | 688 |
Unrealized gains (losses) | 9 | 34 | 16 | 3 |
Level 3 | Trading Assets | Corporate Equities | ||||
Assets | ||||
Beginning balance | 171 | 500 | 166 | 446 |
Realized and unrealized gains (losses) | (7) | (9) | 17 | 8 |
Purchases | 15 | 24 | 69 | 74 |
Sales and issuances | (50) | (268) | (134) | (604) |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | (23) | 49 | (12) | 372 |
Ending balance | 106 | 296 | 106 | 296 |
Unrealized gains (losses) | 5 | 0 | 14 | 3 |
Level 3 | Trading Assets | Net Derivative and Other Contracts | ||||
Assets | ||||
Beginning balance | 1,036 | 3,269 | 3,801 | 1,788 |
Realized and unrealized gains (losses) | (255) | 285 | 423 | 718 |
Purchases | 45 | 90 | 295 | 880 |
Sales and issuances | (158) | (116) | (1,196) | (303) |
Settlements | 141 | 52 | 317 | 580 |
Net transfers | 94 | (120) | (2,737) | (203) |
Ending balance | 903 | 3,460 | 903 | 3,460 |
Unrealized gains (losses) | (263) | 164 | (14) | 405 |
Level 3 | Trading Assets | Net Derivative and Other Contracts | Interest Rates | ||||
Assets | ||||
Beginning balance | 567 | 970 | 1,218 | 420 |
Realized and unrealized gains (losses) | (3) | 105 | (46) | 137 |
Purchases | 12 | 13 | 84 | 36 |
Sales and issuances | (9) | (29) | (38) | (42) |
Settlements | (2) | 33 | (92) | 658 |
Net transfers | 12 | (16) | (549) | (133) |
Ending balance | 577 | 1,076 | 577 | 1,076 |
Unrealized gains (losses) | 24 | 92 | (47) | 146 |
Level 3 | Trading Assets | Net Derivative and Other Contracts | Credit | ||||
Assets | ||||
Beginning balance | (2) | (305) | 41 | (373) |
Realized and unrealized gains (losses) | (39) | (33) | (17) | (18) |
Purchases | 4 | 7 | 9 | 6 |
Sales and issuances | 0 | (9) | (40) | (9) |
Settlements | 58 | 35 | 30 | 96 |
Net transfers | 0 | 2 | (2) | (5) |
Ending balance | 21 | (303) | 21 | (303) |
Unrealized gains (losses) | (41) | (33) | (20) | (34) |
Level 3 | Trading Assets | Net Derivative and Other Contracts | Foreign Exchange | ||||
Assets | ||||
Beginning balance | (26) | 2 | (112) | (43) |
Realized and unrealized gains (losses) | (35) | (59) | 71 | (92) |
Purchases | 0 | 9 | 2 | 9 |
Sales and issuances | 0 | 0 | (48) | 0 |
Settlements | 2 | 17 | 43 | 48 |
Net transfers | 15 | (47) | 0 | 0 |
Ending balance | (44) | (78) | (44) | (78) |
Unrealized gains (losses) | (9) | (50) | 1 | (72) |
Level 3 | Trading Assets | Net Derivative and Other Contracts | Equity | ||||
Assets | ||||
Beginning balance | (1,535) | 1,093 | 1,208 | 184 |
Realized and unrealized gains (losses) | (149) | 114 | 83 | 168 |
Purchases | 29 | 60 | 120 | 816 |
Sales and issuances | (138) | (77) | (1,052) | (231) |
Settlements | 84 | 79 | 319 | 209 |
Net transfers | 38 | (38) | (2,349) | 85 |
Ending balance | (1,671) | 1,231 | (1,671) | 1,231 |
Unrealized gains (losses) | (132) | 110 | 19 | 277 |
Level 3 | Trading Assets | Net Derivative and Other Contracts | Commodity and Other | ||||
Assets | ||||
Beginning balance | 2,032 | 1,509 | 1,446 | 1,600 |
Realized and unrealized gains (losses) | (29) | 158 | 332 | 523 |
Purchases | 0 | 1 | 80 | 13 |
Sales and issuances | (11) | (1) | (18) | (21) |
Settlements | (1) | (112) | 17 | (431) |
Net transfers | 29 | (21) | 163 | (150) |
Ending balance | 2,020 | 1,534 | 2,020 | 1,534 |
Unrealized gains (losses) | (105) | 45 | 33 | 88 |
Level 3 | Trading Assets | Investments | ||||
Assets | ||||
Beginning balance | 941 | 946 | 1,020 | 958 |
Realized and unrealized gains (losses) | 5 | (4) | 5 | 16 |
Purchases | 72 | 13 | 134 | 96 |
Sales and issuances | (103) | (17) | (209) | (44) |
Settlements | 0 | (16) | 0 | (78) |
Net transfers | (97) | 3 | (132) | (23) |
Ending balance | 818 | 925 | 818 | 925 |
Unrealized gains (losses) | 2 | (5) | 5 | 10 |
Level 3 | Trading Liabilities | Corporate and Other Debt | ||||
Liabilities | ||||
Beginning balance | 1 | 15 | 3 | 36 |
Realized and unrealized (gains) losses | 0 | 2 | 0 | 1 |
Purchases | 0 | (18) | (3) | (55) |
Sales and Issuances | 0 | 9 | 1 | 99 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | 0 | 0 | 0 | (73) |
Ending balance | 1 | 8 | 1 | 8 |
Unrealized gains (losses) | 0 | (1) | 0 | 0 |
Level 3 | Trading Liabilities | Corporate Equities | ||||
Liabilities | ||||
Beginning balance | 24 | 28 | 22 | 35 |
Realized and unrealized (gains) losses | 0 | (1) | (4) | 0 |
Purchases | (12) | (10) | (12) | (69) |
Sales and Issuances | 3 | 24 | 11 | 27 |
Settlements | 0 | 0 | 0 | 0 |
Net transfers | (2) | 10 | (4) | 58 |
Ending balance | 13 | 51 | 13 | 51 |
Unrealized gains (losses) | $ 0 | $ 2 | $ 4 | $ (1) |
Fair Value Disclosures (Valuati
Fair Value Disclosures (Valuation Techniques and Sensitivity of Unobservable Inputs Used in Level 3 Fair Value Measurements) (Details) - Level 3 $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)$ / MWh | Dec. 31, 2017USD ($)$ / MWh | |
Recurring | MABS | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 316 | $ 423 |
Recurring | MABS | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Bond price | 0.00% | 0.00% |
Recurring | MABS | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Bond price | 100.00% | 95.00% |
Recurring | MABS | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Bond price | 34.00% | 26.00% |
Recurring | Loans and Lending Commitments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 6,735 | $ 5,945 |
Recurring | Loans and Lending Commitments | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Loan price | 56.00% | 55.00% |
Recurring | Loans and Lending Commitments | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Loan price | 105.00% | 102.00% |
Recurring | Loans and Lending Commitments | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Loan price | 97.00% | 95.00% |
Recurring | Loans and Lending Commitments | Margin Loan Model | Minimum | ||
Fair Value Inputs | ||
Discount rate | 1.00% | 0.00% |
Volatility Skew | 14.00% | 7.00% |
Recurring | Loans and Lending Commitments | Margin Loan Model | Maximum | ||
Fair Value Inputs | ||
Discount rate | 6.00% | 3.00% |
Volatility Skew | 59.00% | 41.00% |
Recurring | Loans and Lending Commitments | Margin Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Discount rate | 2.00% | 1.00% |
Volatility Skew | 27.00% | 22.00% |
Recurring | Corporate and Other Debt | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 710 | $ 701 |
Recurring | Corporate and Other Debt | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Bond price | 0.00% | 3.00% |
Recurring | Corporate and Other Debt | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Bond price | 100.00% | 134.00% |
Recurring | Corporate and Other Debt | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Bond price | 62.00% | 59.00% |
Recurring | Corporate and Other Debt | Discounted Cash Flow | ||
Fair Value Inputs | ||
Discount rate | 20.00% | |
Recurring | Corporate and Other Debt | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Discount rate | 6.00% | |
Recovery rate | 15.00% | 7.00% |
Recurring | Corporate and Other Debt | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Discount rate | 36.00% | |
Recovery rate | 25.00% | 20.00% |
Recurring | Corporate and Other Debt | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Discount rate | 27.00% | |
Recovery rate | 16.00% | 14.00% |
Recurring | Corporate and Other Debt | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 23.00% | 17.00% |
Recurring | Corporate and Other Debt | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 51.00% | 52.00% |
Recurring | Corporate and Other Debt | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 34.00% | 52.00% |
Recurring | Corporate Equities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 106 | $ 166 |
Recurring | Corporate Equities | Comparable Pricing | ||
Fair Value Inputs | ||
Equity price | 100.00% | 100.00% |
Recurring | Interest Rates | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 577 | $ 1,218 |
Recurring | Interest Rates | Option Model | ||
Fair Value Inputs | ||
IR curve | 2.00% | 2.00% |
Recurring | Interest Rates | Option Model | Simple Average | ||
Fair Value Inputs | ||
Inflation volatility | 46.00% | 44.00% |
IR volatility skew | 43.00% | 41.00% |
Recurring | Interest Rates | Option Model | Median | ||
Fair Value Inputs | ||
Inflation volatility | 43.00% | 41.00% |
IR volatility skew | 41.00% | 47.00% |
Recurring | Interest Rates | Option Model | Minimum | ||
Fair Value Inputs | ||
Inflation volatility | 26.00% | 23.00% |
IR volatility skew | 27.00% | 31.00% |
Recurring | Interest Rates | Option Model | Maximum | ||
Fair Value Inputs | ||
Inflation volatility | 66.00% | 63.00% |
IR volatility skew | 95.00% | 97.00% |
Recurring | Credit | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 21 | $ 41 |
Recurring | Credit | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Cash synthetic basis | 8.00% | 12.00% |
Bond price | 0.00% | 0.00% |
Credit spread | 1.95% | |
Recurring | Credit | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Cash synthetic basis | 9.00% | 13.00% |
Bond price | 75.00% | 75.00% |
Credit spread | 4.74% | |
Recurring | Credit | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Cash synthetic basis | 9.00% | 12.00% |
Bond price | 28.00% | 25.00% |
Credit spread | 3.49% | |
Recurring | Credit | Correlation Model | Minimum | ||
Fair Value Inputs | ||
Credit correlation | 35.00% | 38.00% |
Recurring | Credit | Correlation Model | Maximum | ||
Fair Value Inputs | ||
Credit correlation | 74.00% | 100.00% |
Recurring | Credit | Correlation Model | Weighted Average | ||
Fair Value Inputs | ||
Credit correlation | 48.00% | 48.00% |
Recurring | Foreign Exchange | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ (44) | $ (112) |
Recurring | Foreign Exchange | Option Model | Simple Average | ||
Fair Value Inputs | ||
Contingency probability | 93.00% | 96.00% |
IR FX correlation | 55.00% | 56.00% |
IR volatility skew | 43.00% | 41.00% |
Recurring | Foreign Exchange | Option Model | Median | ||
Fair Value Inputs | ||
Contingency probability | 95.00% | 95.00% |
IR FX correlation | 55.00% | 56.00% |
IR volatility skew | 41.00% | 47.00% |
Recurring | Foreign Exchange | Option Model | Minimum | ||
Fair Value Inputs | ||
Contingency probability | 85.00% | 95.00% |
IR FX correlation | 53.00% | 54.00% |
IR volatility skew | 27.00% | 31.00% |
Recurring | Foreign Exchange | Option Model | Maximum | ||
Fair Value Inputs | ||
Contingency probability | 95.00% | 100.00% |
IR FX correlation | 57.00% | 57.00% |
IR volatility skew | 95.00% | 97.00% |
Recurring | Equity | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ (1,671) | $ 1,208 |
Recurring | Equity | Option Model | Simple Average | ||
Fair Value Inputs | ||
IR correlation | 15.00% | 18.00% |
Recurring | Equity | Option Model | Median | ||
Fair Value Inputs | ||
IR correlation | 10.00% | 20.00% |
Recurring | Equity | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 12.00% | 7.00% |
Equity correlation | 5.00% | 5.00% |
Equity - FX correlation | (64.00%) | (55.00%) |
IR correlation | (7.00%) | (7.00%) |
Volatility Skew | (2.00%) | (5.00%) |
Recurring | Equity | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 56.00% | 54.00% |
Equity correlation | 99.00% | 99.00% |
Equity - FX correlation | 10.00% | 40.00% |
IR correlation | 44.00% | 49.00% |
Volatility Skew | 0.00% | 0.00% |
Recurring | Equity | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 34.00% | 32.00% |
Equity correlation | 67.00% | 76.00% |
Equity - FX correlation | (47.00%) | 36.00% |
Volatility Skew | (1.00%) | (1.00%) |
Recurring | Commodity and Other | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 2,020 | $ 1,446 |
Recurring | Commodity and Other | Option Model | Minimum | ||
Fair Value Inputs | ||
Commodity volatility | 5.00% | 7.00% |
Cross commodity correlation | 5.00% | 5.00% |
Forward power price | $ / MWh | 3 | 4 |
Recurring | Commodity and Other | Option Model | Maximum | ||
Fair Value Inputs | ||
Commodity volatility | 104.00% | 205.00% |
Cross commodity correlation | 99.00% | 99.00% |
Forward power price | $ / MWh | 169 | 102 |
Recurring | Commodity and Other | Option Model | Weighted Average | ||
Fair Value Inputs | ||
Commodity volatility | 15.00% | 17.00% |
Cross commodity correlation | 92.00% | 92.00% |
Forward power price | $ / MWh | 30 | 31 |
Recurring | Investments | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 818 | $ 1,020 |
Recurring | Investments | Comparable Pricing | Minimum | ||
Fair Value Inputs | ||
Equity price | 25.00% | 45.00% |
Recurring | Investments | Comparable Pricing | Maximum | ||
Fair Value Inputs | ||
Equity price | 100.00% | 100.00% |
Recurring | Investments | Comparable Pricing | Weighted Average | ||
Fair Value Inputs | ||
Equity price | 95.00% | 92.00% |
Recurring | Investments | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Exit multiple | 7 | 8 |
WACC | 8.00% | 8.00% |
Recurring | Investments | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Exit multiple | 10 | 11 |
WACC | 15.00% | 15.00% |
Recurring | Investments | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Exit multiple | 10 | 10 |
WACC | 9.00% | 9.00% |
Recurring | Investments | Market Approach | Minimum | ||
Fair Value Inputs | ||
EBITDA multiple | 3 | 6 |
Recurring | Investments | Market Approach | Maximum | ||
Fair Value Inputs | ||
EBITDA multiple | 23 | 25 |
Recurring | Investments | Market Approach | Weighted Average | ||
Fair Value Inputs | ||
EBITDA multiple | 13 | 11 |
Recurring | Deposits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 73 | $ 47 |
Recurring | Deposits | Option Model | ||
Fair Value Inputs | ||
Volatility Skew | 0.00% | |
Recurring | Deposits | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 17.00% | |
Recurring | Deposits | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 38.00% | |
Recurring | Deposits | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 20.00% | |
Recurring | Other Secured Financings | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 172 | $ 239 |
Recurring | Other Secured Financings | Discounted Cash Flow | Minimum | ||
Fair Value Inputs | ||
Funding spread | 0.60% | 0.39% |
Recurring | Other Secured Financings | Discounted Cash Flow | Maximum | ||
Fair Value Inputs | ||
Funding spread | 2.60% | 0.76% |
Recurring | Other Secured Financings | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs | ||
Funding spread | 1.60% | 0.57% |
Recurring | Other Secured Financings | Option Model | ||
Fair Value Inputs | ||
Volatility Skew | (1.00%) | |
Recurring | Other Secured Financings | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 10.00% | 10.00% |
Recurring | Other Secured Financings | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 40.00% | 40.00% |
Recurring | Other Secured Financings | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 26.00% | 26.00% |
Recurring | Borrowings | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Liabilities | $ 3,620 | $ 2,984 |
Recurring | Borrowings | Option Model | Minimum | ||
Fair Value Inputs | ||
At the money volatility | 5.00% | 5.00% |
Equity correlation | 38.00% | 39.00% |
Equity - FX correlation | (75.00%) | (55.00%) |
Volatility Skew | (2.00%) | (2.00%) |
Recurring | Borrowings | Option Model | Maximum | ||
Fair Value Inputs | ||
At the money volatility | 35.00% | 35.00% |
Equity correlation | 98.00% | 95.00% |
Equity - FX correlation | 50.00% | 10.00% |
Volatility Skew | 0.00% | 0.00% |
Recurring | Borrowings | Option Model | Weighted Average | ||
Fair Value Inputs | ||
At the money volatility | 23.00% | 22.00% |
Equity correlation | 75.00% | 86.00% |
Equity - FX correlation | (28.00%) | (18.00%) |
Volatility Skew | 0.00% | 0.00% |
Nonrecurring | Loans | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Assets | $ 1,096 | $ 924 |
Nonrecurring | Loans | Corporate Loan Model | Minimum | ||
Fair Value Inputs | ||
Credit spread | 0.96% | 0.93% |
Nonrecurring | Loans | Corporate Loan Model | Maximum | ||
Fair Value Inputs | ||
Credit spread | 4.00% | 5.63% |
Nonrecurring | Loans | Corporate Loan Model | Weighted Average | ||
Fair Value Inputs | ||
Credit spread | 1.60% | 2.39% |
Nonrecurring | Loans | Expected Recovery | Minimum | ||
Fair Value Inputs | ||
Asset coverage | 95.00% | |
Nonrecurring | Loans | Expected Recovery | Maximum | ||
Fair Value Inputs | ||
Asset coverage | 99.00% | |
Nonrecurring | Loans | Expected Recovery | Weighted Average | ||
Fair Value Inputs | ||
Asset coverage | 95.00% |
Fair Value Disclosures (Measure
Fair Value Disclosures (Measured Based on Net Asset Value) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Measured Based on Net Asset Value | ||
Carrying value | $ 2,412 | $ 2,564 |
Commitment | 500 | 495 |
Private Equity Funds | ||
Measured Based on Net Asset Value | ||
Carrying value | 1,568 | 1,674 |
Commitment | 328 | 308 |
Carrying Value of Nonredeemable Funds by Contractual Maturity | ||
Less than 5 years | 621 | |
5-10 years | 816 | |
Over 10 years | 131 | |
Total | 1,568 | |
Real Estate Funds | ||
Measured Based on Net Asset Value | ||
Carrying value | 749 | 800 |
Commitment | 168 | 183 |
Carrying Value of Nonredeemable Funds by Contractual Maturity | ||
Less than 5 years | 408 | |
5-10 years | 313 | |
Over 10 years | 28 | |
Total | 749 | |
Hedge Funds | ||
Measured Based on Net Asset Value | ||
Carrying value | 95 | 90 |
Commitment | $ 4 | $ 4 |
Fair Value Disclosures (Borrowi
Fair Value Disclosures (Borrowings Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Measurements | ||
Borrowings at fair value | $ 50,506 | $ 46,912 |
Recurring | ||
Fair Value Measurements | ||
Borrowings at fair value | 50,506 | 46,912 |
Recurring | Equity | ||
Fair Value Measurements | ||
Borrowings at fair value | 25,049 | 25,903 |
Recurring | Interest Rates | ||
Fair Value Measurements | ||
Borrowings at fair value | 22,101 | 19,230 |
Recurring | Foreign Exchange | ||
Fair Value Measurements | ||
Borrowings at fair value | 504 | 666 |
Recurring | Credit Contracts | ||
Fair Value Measurements | ||
Borrowings at fair value | 863 | 815 |
Recurring | Commodities | ||
Fair Value Measurements | ||
Borrowings at fair value | $ 1,989 | $ 298 |
Fair Value Disclosures (Earning
Fair Value Disclosures (Earnings Impact of Borrowings under the Fair Value Option) (Details) - Borrowings - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value Option Quantitative Disclosures | ||||
Earnings impact | $ 390 | $ (1,071) | $ 1,100 | $ (3,822) |
Trading Revenues | ||||
Fair Value Option Quantitative Disclosures | ||||
Earnings impact | 449 | (964) | 1,334 | (3,484) |
Interest Income (Expense) | ||||
Fair Value Option Quantitative Disclosures | ||||
Earnings impact | $ (59) | $ (107) | $ (234) | $ (338) |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Fair Value disclosure | |||||
Cumulative pre-tax DVA gain (loss) recognized in AOCI | $ (1,374) | $ (1,374) | $ (1,831) | ||
Borrowings | OCI | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | (1,010) | $ (226) | 425 | $ (493) | |
Borrowings | Trading Revenues | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | (4) | 9 | (22) | 1 | |
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 | 55 | 49 | 199 | 94 | |
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 | (6) | 0 | (3) | 0 | |
Other | OCI | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | 28 | (3) | 32 | (6) | |
Other | Trading Revenues | |||||
Fair Value disclosure | |||||
Gains (losses) due to changes in instrument-specific credit risk | $ (32) | $ 0 | $ (32) | $ 0 |
Fair Value Disclosures (Excess
Fair Value Disclosures (Excess of Contractual Principal Amount Over Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures | ||
Loans and other debt | $ 12,809 | $ 13,481 |
Loans 90 or more days past due and/or on nonaccrual status | 10,678 | 11,253 |
Borrowings | $ 1,438 | $ 71 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value Loans on Nonaccrual Status) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures | ||
Nonaccrual loans | $ 1,522 | $ 1,240 |
Nonaccrual loans 90 or more days past due | $ 802 | $ 779 |
Fair Value Disclosures (Measu_2
Fair Value Disclosures (Measured at Fair Value on a Nonrecurring Basis) (Details) - Nonrecurring - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Assets at Fair Value | |||||
Loans | $ 2,556 | $ 2,556 | $ 2,318 | ||
Other assets-Other investments | 51 | 51 | 144 | ||
Other assets-Premises, equipment and software | 0 | 0 | |||
Total assets, fair value | 2,607 | 2,607 | 2,462 | ||
Liabilities at Fair Value | |||||
Other liabilities and accrued expenses-Lending commitments | 233 | 233 | 196 | ||
Total liabilities at fair value | 233 | 233 | 196 | ||
Assets | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) from fair value remeasurements | (10) | $ (7) | (21) | $ 28 | |
Loans | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) from fair value remeasurements | (5) | 0 | 1 | 41 | |
Other Assets-Other Investments | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) from fair value remeasurements | (2) | (6) | (9) | (6) | |
Other Assets-Premises, Equipment and Software Costs | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) from fair value remeasurements | (3) | (1) | (13) | (7) | |
Liabilities | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) from fair value remeasurements | 31 | 4 | 41 | 64 | |
Other Liabilities and Accrued Expenses-Lending Commitments | |||||
Fair Value Adjustment Disclosure | |||||
Gains (losses) from fair value remeasurements | 31 | $ 4 | 41 | $ 64 | |
Level 2 | |||||
Assets at Fair Value | |||||
Loans | 1,460 | 1,460 | 1,394 | ||
Other assets-Other investments | 15 | 15 | 0 | ||
Other assets-Premises, equipment and software | 0 | 0 | |||
Total assets, fair value | 1,475 | 1,475 | 1,394 | ||
Liabilities at Fair Value | |||||
Other liabilities and accrued expenses-Lending commitments | 185 | 185 | 158 | ||
Total liabilities at fair value | 185 | 185 | 158 | ||
Level 3 | |||||
Assets at Fair Value | |||||
Loans | 1,096 | 1,096 | 924 | ||
Other assets-Other investments | 36 | 36 | 144 | ||
Other assets-Premises, equipment and software | 0 | 0 | |||
Total assets, fair value | 1,132 | 1,132 | 1,068 | ||
Liabilities at Fair Value | |||||
Other liabilities and accrued expenses-Lending commitments | 48 | 48 | 38 | ||
Total liabilities at fair value | $ 48 | $ 48 | $ 38 |
Fair Value Disclosures (Financi
Fair Value Disclosures (Financial Instruments Not Measured at Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Financial Assets | |||
Cash and due from banks | $ 36,641 | $ 24,816 | $ 24,047 |
Interest bearing deposits with banks | 22,638 | 21,348 | 24,144 |
Restricted cash | 33,202 | 34,231 | $ 32,731 |
Securities borrowed | 142,489 | 124,010 | |
Customer and other receivables | 60,839 | 56,187 | |
Loans | 98,330 | 92,953 | |
Financial Liabilities | |||
Deposits | 175,185 | 159,436 | |
Securities Sold under Agreements to Repurchase | 60,328 | 56,424 | |
Securities loaned | 11,833 | 13,592 | |
Other secured financings | 10,057 | 11,271 | |
Customer and other payables | 191,026 | 191,510 | |
Borrowings | 190,889 | 192,582 | |
Carrying Value | |||
Financial Assets | |||
Cash and due from banks | 36,641 | 24,816 | |
Interest bearing deposits with banks | 22,638 | 21,348 | |
Restricted cash | 33,202 | 34,231 | |
Investment securities - HTM securities | 25,336 | 23,599 | |
Securities purchased under agreements to resell | 69,086 | 84,258 | |
Securities borrowed | 142,489 | 124,010 | |
Customer and other receivables | 55,189 | 51,269 | |
Loans | 109,983 | 104,126 | |
Other assets | 483 | 433 | |
Financial Liabilities | |||
Deposits | 174,803 | 159,232 | |
Securities Sold under Agreements to Repurchase | 59,544 | 55,624 | |
Securities loaned | 11,833 | 13,592 | |
Other secured financings | 5,503 | 7,408 | |
Customer and other payables | 188,054 | 188,464 | |
Borrowings | 140,383 | 145,670 | |
Additional Disclosures | |||
Commitment amount | 106,904 | 100,151 | |
Fair Value | |||
Financial Assets | |||
Cash and due from banks | 36,641 | 24,816 | |
Interest bearing deposits with banks | 22,638 | 21,348 | |
Restricted cash | 33,202 | 34,231 | |
Investment securities - HTM securities | 24,082 | 23,081 | |
Securities purchased under agreements to resell | 69,026 | 84,217 | |
Securities borrowed | 142,433 | 124,019 | |
Customer and other receivables | 55,019 | 51,143 | |
Loans | 109,580 | 104,218 | |
Other assets | 483 | 433 | |
Financial Liabilities | |||
Deposits | 174,764 | 159,232 | |
Securities Sold under Agreements to Repurchase | 59,495 | 55,619 | |
Securities loaned | 11,909 | 13,592 | |
Other secured financings | 5,510 | 7,418 | |
Customer and other payables | 188,054 | 188,464 | |
Borrowings | 145,106 | 151,722 | |
Additional Disclosures | |||
Loans and lending commitments at fair value | 906 | 794 | |
Fair Value | Level 1 | |||
Financial Assets | |||
Cash and due from banks | 36,641 | 24,816 | |
Interest bearing deposits with banks | 22,638 | 21,348 | |
Restricted cash | 33,202 | 34,231 | |
Investment securities - HTM securities | 12,757 | 11,119 | |
Securities purchased under agreements to resell | 0 | 0 | |
Securities borrowed | 0 | 0 | |
Customer and other receivables | 0 | 0 | |
Loans | 0 | 0 | |
Other assets | 0 | 0 | |
Financial Liabilities | |||
Deposits | 0 | 0 | |
Securities Sold under Agreements to Repurchase | 0 | 0 | |
Securities loaned | 0 | 0 | |
Other secured financings | 0 | 0 | |
Customer and other payables | 0 | 0 | |
Borrowings | 0 | 0 | |
Fair Value | Level 2 | |||
Financial Assets | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits with banks | 0 | 0 | |
Restricted cash | 0 | 0 | |
Investment securities - HTM securities | 10,883 | 11,673 | |
Securities purchased under agreements to resell | 69,026 | 78,239 | |
Securities borrowed | 142,433 | 124,018 | |
Customer and other receivables | 51,768 | 47,159 | |
Loans | 21,259 | 21,290 | |
Other assets | 483 | 433 | |
Financial Liabilities | |||
Deposits | 174,764 | 159,232 | |
Securities Sold under Agreements to Repurchase | 59,495 | 51,752 | |
Securities loaned | 11,909 | 13,191 | |
Other secured financings | 3,876 | 5,987 | |
Customer and other payables | 188,054 | 188,464 | |
Borrowings | 145,076 | 151,692 | |
Additional Disclosures | |||
Loans and lending commitments at fair value | 702 | 620 | |
Fair Value | Level 3 | |||
Financial Assets | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits with banks | 0 | 0 | |
Restricted cash | 0 | 0 | |
Investment securities - HTM securities | 442 | 289 | |
Securities purchased under agreements to resell | 0 | 5,978 | |
Securities borrowed | 0 | 1 | |
Customer and other receivables | 3,251 | 3,984 | |
Loans | 88,321 | 82,928 | |
Other assets | 0 | 0 | |
Financial Liabilities | |||
Deposits | 0 | 0 | |
Securities Sold under Agreements to Repurchase | 0 | 3,867 | |
Securities loaned | 0 | 401 | |
Other secured financings | 1,634 | 1,431 | |
Customer and other payables | 0 | 0 | |
Borrowings | 30 | 30 | |
Additional Disclosures | |||
Loans and lending commitments at fair value | $ 204 | $ 174 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Derivative Fair Values) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Assets | ||
Gross derivatives | $ 290,579 | $ 298,411 |
Amounts offset: Counterparty netting | (219,132) | (224,768) |
Amounts offset: Cash collateral netting | (40,808) | (42,830) |
Total in Trading Assets | 30,639 | 30,813 |
Amounts not offset: Financial instruments collateral | (14,077) | (12,363) |
Amounts not offset: Other cash collateral | (29) | (4) |
Net amounts | 16,533 | 18,446 |
Derivative assets not subject to legally enforceable master netting or collateral agreements | 3,590 | 3,154 |
Derivative Liabilities | ||
Gross derivatives | 273,375 | 283,839 |
Counterparty netting | (219,132) | (224,768) |
Cash collateral netting | (28,417) | (32,376) |
Total in Trading Liabilities | 25,826 | 26,695 |
Amounts not offset against financial instruments collateral | (4,872) | (5,935) |
Amounts not offset against other cash collateral | (33) | (32) |
Net amounts | 20,921 | 20,728 |
Derivative liabilities not subject to legally enforceable master netting or collateral agreements | 5,763 | 3,751 |
Bilateral OTC | ||
Derivative Assets | ||
Gross derivatives | 258,972 | 270,993 |
Amounts offset: Counterparty netting | (190,040) | (201,051) |
Amounts offset: Cash collateral netting | (40,294) | (42,141) |
Total in Trading Assets | 28,638 | 27,801 |
Amounts not offset: Financial instruments collateral | (14,077) | (12,363) |
Amounts not offset: Other cash collateral | (29) | (4) |
Net amounts | 14,532 | 15,434 |
Derivative Liabilities | ||
Gross derivatives | 242,548 | 257,471 |
Counterparty netting | (190,040) | (201,051) |
Cash collateral netting | (27,777) | (31,892) |
Total in Trading Liabilities | 24,731 | 24,528 |
Amounts not offset against financial instruments collateral | (4,729) | (5,523) |
Amounts not offset against other cash collateral | (33) | (18) |
Net amounts | 19,969 | 18,987 |
Cleared OTC | ||
Derivative Assets | ||
Gross derivatives | 5,514 | 4,786 |
Amounts offset: Counterparty netting | (4,850) | (3,856) |
Amounts offset: Cash collateral netting | (514) | (689) |
Total in Trading Assets | 150 | 241 |
Amounts not offset: Financial instruments collateral | 0 | 0 |
Amounts not offset: Other cash collateral | 0 | 0 |
Net amounts | 150 | 241 |
Derivative Liabilities | ||
Gross derivatives | 5,695 | 4,433 |
Counterparty netting | (4,850) | (3,856) |
Cash collateral netting | (640) | (484) |
Total in Trading Liabilities | 205 | 93 |
Amounts not offset against financial instruments collateral | 0 | 0 |
Amounts not offset against other cash collateral | 0 | (14) |
Net amounts | 205 | 79 |
Exchange Traded | ||
Derivative Assets | ||
Gross derivatives | 26,093 | 22,632 |
Amounts offset: Counterparty netting | (24,242) | (19,861) |
Amounts offset: Cash collateral netting | 0 | 0 |
Total in Trading Assets | 1,851 | 2,771 |
Amounts not offset: Financial instruments collateral | 0 | 0 |
Amounts not offset: Other cash collateral | 0 | 0 |
Net amounts | 1,851 | 2,771 |
Derivative Liabilities | ||
Gross derivatives | 25,132 | 21,935 |
Counterparty netting | (24,242) | (19,861) |
Cash collateral netting | 0 | 0 |
Total in Trading Liabilities | 890 | 2,074 |
Amounts not offset against financial instruments collateral | (143) | (412) |
Amounts not offset against other cash collateral | 0 | 0 |
Net amounts | 747 | 1,662 |
Designated as Accounting Hedges | ||
Derivative Assets | ||
Gross derivatives | 620 | 1,120 |
Derivative Liabilities | ||
Gross derivatives | 304 | 197 |
Designated as Accounting Hedges | Bilateral OTC | ||
Derivative Assets | ||
Gross derivatives | 574 | 1,114 |
Derivative Liabilities | ||
Gross derivatives | 289 | 139 |
Designated as Accounting Hedges | Cleared OTC | ||
Derivative Assets | ||
Gross derivatives | 46 | 6 |
Derivative Liabilities | ||
Gross derivatives | 15 | 58 |
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 | 467 | 1,057 |
Derivative Liabilities | ||
Gross derivatives | 271 | 68 |
Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross derivatives | 467 | 1,057 |
Derivative Liabilities | ||
Gross derivatives | 270 | 67 |
Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | ||
Derivative Assets | ||
Gross derivatives | 0 | 0 |
Derivative Liabilities | ||
Gross derivatives | 1 | 1 |
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 | 153 | 63 |
Derivative Liabilities | ||
Gross derivatives | 33 | 129 |
Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross derivatives | 107 | 57 |
Derivative Liabilities | ||
Gross derivatives | 19 | 72 |
Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | ||
Derivative Assets | ||
Gross derivatives | 46 | 6 |
Derivative Liabilities | ||
Gross derivatives | 14 | 57 |
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 | 289,959 | 297,291 |
Derivative Liabilities | ||
Gross derivatives | 273,071 | 283,642 |
Not Designated as Accounting Hedges | Bilateral OTC | ||
Derivative Assets | ||
Gross derivatives | 258,398 | 269,879 |
Derivative Liabilities | ||
Gross derivatives | 242,259 | 257,332 |
Not Designated as Accounting Hedges | Cleared OTC | ||
Derivative Assets | ||
Gross derivatives | 5,468 | 4,780 |
Derivative Liabilities | ||
Gross derivatives | 5,680 | 4,375 |
Not Designated as Accounting Hedges | Exchange Traded | ||
Derivative Assets | ||
Gross derivatives | 26,093 | 22,632 |
Derivative Liabilities | ||
Gross derivatives | 25,132 | 21,935 |
Not Designated as Accounting Hedges | Interest Rate Contracts | ||
Derivative Assets | ||
Gross derivatives | 159,198 | 179,882 |
Derivative Liabilities | ||
Gross derivatives | 143,057 | 163,080 |
Not Designated as Accounting Hedges | Interest Rate Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross derivatives | 156,859 | 177,948 |
Derivative Liabilities | ||
Gross derivatives | 140,816 | 161,758 |
Not Designated as Accounting Hedges | Interest Rate Contracts | Cleared OTC | ||
Derivative Assets | ||
Gross derivatives | 1,960 | 1,700 |
Derivative Liabilities | ||
Gross derivatives | 1,733 | 1,178 |
Not Designated as Accounting Hedges | Interest Rate Contracts | Exchange Traded | ||
Derivative Assets | ||
Gross derivatives | 379 | 234 |
Derivative Liabilities | ||
Gross derivatives | 508 | 144 |
Not Designated as Accounting Hedges | Credit Contracts | ||
Derivative Assets | ||
Gross derivatives | 6,156 | 8,022 |
Derivative Liabilities | ||
Gross derivatives | 6,551 | 8,545 |
Not Designated as Accounting Hedges | Credit Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross derivatives | 4,446 | 5,740 |
Derivative Liabilities | ||
Gross derivatives | 4,452 | 6,273 |
Not Designated as Accounting Hedges | Credit Contracts | Cleared OTC | ||
Derivative Assets | ||
Gross derivatives | 1,710 | 2,282 |
Derivative Liabilities | ||
Gross derivatives | 2,099 | 2,272 |
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 | 63,576 | 53,734 |
Derivative Liabilities | ||
Gross derivatives | 61,695 | 55,139 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross derivatives | 61,596 | 52,878 |
Derivative Liabilities | ||
Gross derivatives | 59,763 | 54,191 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Cleared OTC | ||
Derivative Assets | ||
Gross derivatives | 1,798 | 798 |
Derivative Liabilities | ||
Gross derivatives | 1,848 | 925 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | Exchange Traded | ||
Derivative Assets | ||
Gross derivatives | 182 | 58 |
Derivative Liabilities | ||
Gross derivatives | 84 | 23 |
Not Designated as Accounting Hedges | Equity Contracts | ||
Derivative Assets | ||
Gross derivatives | 49,918 | 44,990 |
Derivative Liabilities | ||
Gross derivatives | 51,387 | 47,989 |
Not Designated as Accounting Hedges | Equity Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross derivatives | 26,522 | 24,452 |
Derivative Liabilities | ||
Gross derivatives | 28,920 | 27,993 |
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 | 23,396 | 20,538 |
Derivative Liabilities | ||
Gross derivatives | 22,467 | 19,996 |
Not Designated as Accounting Hedges | Commodity and Other Contracts | ||
Derivative Assets | ||
Gross derivatives | 11,111 | 10,663 |
Derivative Liabilities | ||
Gross derivatives | 10,381 | 8,889 |
Not Designated as Accounting Hedges | Commodity and Other Contracts | Bilateral OTC | ||
Derivative Assets | ||
Gross derivatives | 8,975 | 8,861 |
Derivative Liabilities | ||
Gross derivatives | 8,308 | 7,117 |
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 | 2,136 | 1,802 |
Derivative Liabilities | ||
Gross derivatives | $ 2,073 | $ 1,772 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Derivative Notionals) (Details) - USD ($) $ in Billions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Notional Amount | ||
Derivative assets | $ 17,139 | $ 16,460 |
Derivative liabilities | 16,210 | 15,100 |
Bilateral OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 8,207 | 6,660 |
Derivative liabilities | 8,162 | 6,907 |
Cleared OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 7,238 | 6,671 |
Derivative liabilities | 6,681 | 6,587 |
Exchange Traded | ||
Derivatives, Notional Amount | ||
Derivative assets | 1,694 | 3,129 |
Derivative liabilities | 1,367 | 1,606 |
Designated as Accounting Hedges | ||
Derivatives, Notional Amount | ||
Derivative assets | 30 | 70 |
Derivative liabilities | 159 | 110 |
Designated as Accounting Hedges | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 24 | 66 |
Derivative liabilities | 155 | 104 |
Designated as Accounting Hedges | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 6 | 4 |
Derivative liabilities | 4 | 6 |
Designated as Accounting Hedges | Bilateral OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 21 | 24 |
Derivative liabilities | 5 | 6 |
Designated as Accounting Hedges | Bilateral OTC | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 16 | 20 |
Derivative liabilities | 2 | 2 |
Designated as Accounting Hedges | Bilateral OTC | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 5 | 4 |
Derivative liabilities | 3 | 4 |
Designated as Accounting Hedges | Cleared OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 9 | 46 |
Derivative liabilities | 154 | 104 |
Designated as Accounting Hedges | Cleared OTC | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 8 | 46 |
Derivative liabilities | 153 | 102 |
Designated as Accounting Hedges | Cleared OTC | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 1 | 0 |
Derivative liabilities | 1 | 2 |
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 | 17,109 | 16,390 |
Derivative liabilities | 16,051 | 14,990 |
Not Designated as Accounting Hedges | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 13,632 | 13,171 |
Derivative liabilities | 12,388 | 11,613 |
Not Designated as Accounting Hedges | Credit Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 210 | 294 |
Derivative liabilities | 225 | 306 |
Not Designated as Accounting Hedges | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 2,269 | 2,036 |
Derivative liabilities | 2,259 | 2,143 |
Not Designated as Accounting Hedges | Equity Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 839 | 731 |
Derivative liabilities | 1,040 | 799 |
Not Designated as Accounting Hedges | Commodity and Other Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 159 | 158 |
Derivative liabilities | 139 | 129 |
Not Designated as Accounting Hedges | Bilateral OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 8,186 | 6,636 |
Derivative liabilities | 8,157 | 6,901 |
Not Designated as Accounting Hedges | Bilateral OTC | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 5,359 | 3,999 |
Derivative liabilities | 5,317 | 4,199 |
Not Designated as Accounting Hedges | Bilateral OTC | Credit Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 139 | 194 |
Derivative liabilities | 146 | 226 |
Not Designated as Accounting Hedges | Bilateral OTC | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 2,160 | 1,960 |
Derivative liabilities | 2,155 | 2,014 |
Not Designated as Accounting Hedges | Bilateral OTC | Equity Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 433 | 397 |
Derivative liabilities | 462 | 394 |
Not Designated as Accounting Hedges | Bilateral OTC | Commodity and Other Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 95 | 86 |
Derivative liabilities | 77 | 68 |
Not Designated as Accounting Hedges | Cleared OTC | ||
Derivatives, Notional Amount | ||
Derivative assets | 7,229 | 6,625 |
Derivative liabilities | 6,527 | 6,483 |
Not Designated as Accounting Hedges | Cleared OTC | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 7,067 | 6,458 |
Derivative liabilities | 6,361 | 6,325 |
Not Designated as Accounting Hedges | Cleared OTC | Credit Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 71 | 100 |
Derivative liabilities | 79 | 80 |
Not Designated as Accounting Hedges | Cleared OTC | Foreign Exchange Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 91 | 67 |
Derivative liabilities | 87 | 78 |
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 | 1,694 | 3,129 |
Derivative liabilities | 1,367 | 1,606 |
Not Designated as Accounting Hedges | Exchange Traded | Interest Rate Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 1,206 | 2,714 |
Derivative liabilities | 710 | 1,089 |
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 | 18 | 9 |
Derivative liabilities | 17 | 51 |
Not Designated as Accounting Hedges | Exchange Traded | Equity Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 406 | 334 |
Derivative liabilities | 578 | 405 |
Not Designated as Accounting Hedges | Exchange Traded | Commodity and Other Contracts | ||
Derivatives, Notional Amount | ||
Derivative assets | 64 | 72 |
Derivative liabilities | $ 62 | $ 61 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Gains (Losses) on Accounting Hedges and Fair Value Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Borrowings | ||||
ASU 2017-12 Derivatives and Hedging-Targeted Improvements to Accounting for Hedging Activities | ||||
Carrying amount of currently or previously hedged liability | $ 103,269 | $ 103,269 | ||
Basis adjustments included in carrying amount | (3,744) | (3,744) | ||
Investment Securities - AFS | ||||
ASU 2017-12 Derivatives and Hedging-Targeted Improvements to Accounting for Hedging Activities | ||||
Carrying amount of currently or previously hedged asset | 86 | 86 | ||
Fair Value Hedges | Interest Expense | Interest Rate Contracts | ||||
Gain (Loss) on Fair Value Hedges Recognized in Interest Expense | ||||
Gains (losses) recognized in Interest Expense | (1,124) | $ (218) | (3,584) | $ (878) |
Fair Value Hedges | Interest Expense | Borrowings | ||||
Gain (Loss) on Fair Value Hedges Recognized in Interest Expense | ||||
Gains (losses) recognized in Interest Expense | 1,124 | 175 | 3,563 | 670 |
Net Investment Hedges | Foreign Exchange Contracts | ||||
Net Investment Hedges | ||||
Gains (losses) recognized in OCI | 107 | (88) | 354 | (340) |
Forward points excluded from hedge effectiveness testing - Interest income | $ 13 | $ (3) | $ 44 | $ (22) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities (Credit Risk-Related Contingencies) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives | ||
Net derivative liabilities with credit-risk-related contingent features | $ 16,081 | $ 20,675 |
Collateral posted | 12,745 | $ 16,642 |
Bilateral Downgrade Agreement | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade of either party | 653 | |
One-notch Downgrade | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade of either party | 429 | |
Two-notch Downgrade | ||
Derivatives | ||
Incremental collateral or termination payments upon potential future ratings downgrade of either party | $ 325 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities (Protection Sold and Purchased with CDS) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Protection Sold | CDSs | ||
Credit Derivatives | ||
Fair value (asset)/liability | $ (374) | $ (1,960) |
Notional | 200,502 | 289,885 |
Protection Sold | Single Name CDS | ||
Credit Derivatives | ||
Fair value (asset)/liability | (326) | (1,277) |
Notional | 111,848 | 146,948 |
Protection Sold | Index and Basket CDSs | ||
Credit Derivatives | ||
Fair value (asset)/liability | 159 | (341) |
Notional | 81,810 | 131,073 |
Protection Sold | Tranched Index and Basket | ||
Credit Derivatives | ||
Fair value (asset)/liability | (207) | (342) |
Notional | 6,844 | 11,864 |
Protection Purchased | CDSs | ||
Credit Derivatives | ||
Fair value (asset)/liability | 769 | 2,483 |
Notional | 234,172 | 309,619 |
Protection Purchased | Single Name CDS | ||
Credit Derivatives | ||
Fair value (asset)/liability | 469 | 1,658 |
Notional | 127,114 | 164,773 |
Protection Purchased | Index and Basket CDSs | ||
Credit Derivatives | ||
Fair value (asset)/liability | (67) | 209 |
Notional | 94,320 | 120,348 |
Protection Purchased | Tranched Index and Basket | ||
Credit Derivatives | ||
Fair value (asset)/liability | 367 | 616 |
Notional | $ 12,738 | $ 24,498 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities (Maximum Potential Payout/Notional of Credit Protection Sold) (Details) - Credit Protection Sold - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Credit Derivatives | ||
Maximum potential payout/notional | $ 200,631 | $ 290,021 |
Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 47,946 | 88,228 |
1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 53,667 | 81,673 |
3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 58,185 | 94,110 |
Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 40,833 | 26,010 |
CDSs | ||
Credit Derivatives | ||
Maximum potential payout/notional | 200,502 | 289,885 |
CDS protection sold with identical protection purchased | 186,961 | 274,473 |
CDSs | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 47,946 | 88,226 |
CDSs | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 53,667 | 81,673 |
CDSs | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 58,185 | 94,110 |
CDSs | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 40,704 | 25,876 |
Single Name CDS | ||
Credit Derivatives | ||
Maximum potential payout/notional | 111,848 | 146,948 |
Single Name CDS | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 36,052 | 53,934 |
Single Name CDS | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 37,808 | 58,884 |
Single Name CDS | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 26,255 | 24,350 |
Single Name CDS | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 11,733 | 9,780 |
Single Name CDS | Investment Grade | ||
Credit Derivatives | ||
Maximum potential payout/notional | 77,310 | 109,341 |
Single Name CDS | Investment Grade | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 24,275 | 39,721 |
Single Name CDS | Investment Grade | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 25,802 | 42,591 |
Single Name CDS | Investment Grade | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 17,512 | 18,157 |
Single Name CDS | Investment Grade | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 9,721 | 8,872 |
Single Name CDS | Non-investment Grade | ||
Credit Derivatives | ||
Maximum potential payout/notional | 34,538 | 37,607 |
Single Name CDS | Non-investment Grade | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 11,777 | 14,213 |
Single Name CDS | Non-investment Grade | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 12,006 | 16,293 |
Single Name CDS | Non-investment Grade | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 8,743 | 6,193 |
Single Name CDS | Non-investment Grade | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 2,012 | 908 |
Index and Basket CDS | ||
Credit Derivatives | ||
Maximum potential payout/notional | 88,654 | 142,937 |
Index and Basket CDS | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 11,894 | 34,292 |
Index and Basket CDS | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 15,859 | 22,789 |
Index and Basket CDS | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 31,930 | 69,760 |
Index and Basket CDS | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 28,971 | 16,096 |
Index and Basket CDS | Investment Grade | ||
Credit Derivatives | ||
Maximum potential payout/notional | 54,604 | 88,614 |
Index and Basket CDS | Investment Grade | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 6,594 | 29,046 |
Index and Basket CDS | Investment Grade | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 8,975 | 15,418 |
Index and Basket CDS | Investment Grade | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 22,203 | 37,343 |
Index and Basket CDS | Investment Grade | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 16,832 | 6,807 |
Index and Basket CDS | Non-investment Grade | ||
Credit Derivatives | ||
Maximum potential payout/notional | 34,050 | 54,323 |
Index and Basket CDS | Non-investment Grade | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 5,300 | 5,246 |
Index and Basket CDS | Non-investment Grade | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 6,884 | 7,371 |
Index and Basket CDS | Non-investment Grade | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 9,727 | 32,417 |
Index and Basket CDS | Non-investment Grade | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 12,139 | 9,289 |
Other Credit Contracts | ||
Credit Derivatives | ||
Maximum potential payout/notional | 129 | 136 |
Other Credit Contracts | Less Than 1 (Year) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 0 | 2 |
Other Credit Contracts | 1 - 3 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 0 | 0 |
Other Credit Contracts | 3 - 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | 0 | 0 |
Other Credit Contracts | Over 5 (Years) | ||
Credit Derivatives | ||
Maximum potential payout/notional | $ 129 | $ 134 |
Derivative Instruments and He_9
Derivative Instruments and Hedging Activities (Fair Value (Asset)/Liability of Credit Protection Sold) (Details) - Credit Protection Sold - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Credit Derivatives | ||
Fair value (asset)/liability | $ (353) | $ (1,944) |
CDSs | ||
Credit Derivatives | ||
Fair value (asset)/liability | (374) | (1,960) |
Single Name CDS | ||
Credit Derivatives | ||
Fair value (asset)/liability | (326) | (1,277) |
Single Name CDS | Investment Grade | ||
Credit Derivatives | ||
Fair value (asset)/liability | (387) | (1,167) |
Single Name CDS | Non-investment Grade | ||
Credit Derivatives | ||
Fair value (asset)/liability | 61 | (110) |
Index and Basket CDS | ||
Credit Derivatives | ||
Fair value (asset)/liability | (48) | (683) |
Index and Basket CDS | Investment Grade | ||
Credit Derivatives | ||
Fair value (asset)/liability | (683) | (1,091) |
Index and Basket CDS | Non-investment Grade | ||
Credit Derivatives | ||
Fair value (asset)/liability | 635 | 408 |
Other Credit Contracts | ||
Credit Derivatives | ||
Fair value (asset)/liability | $ 21 | $ 16 |
Investment Securities (AFS and
Investment Securities (AFS and HTM Securities) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Investment securities | ||
Total Investment securities: Amortized cost | $ 84,351 | $ 79,673 |
Total Investment securities: Gross unrealized gains | 31 | 59 |
Total Investment securities: Gross unrealized losses | 3,068 | 1,448 |
Total Investment securities: Fair value | 81,314 | 78,284 |
AFS securities | ||
AFS debt securities: Amortized cost | 56,059 | |
AFS debt securities: Gross unrealized gains | 51 | |
AFS debt securities: Gross unrealized losses | 912 | |
AFS debt securities: Fair value | 55,198 | |
AFS equity securities: Amortized cost | 15 | |
AFS equity securities: Gross unrealized gains | 0 | |
AFS equity securities: Gross unrealized losses | 10 | |
AFS equity securities: Fair value | 5 | |
Total AFS securities: Amortized cost | 59,015 | 56,074 |
Total AFS securities: Gross unrealized gains | 30 | 51 |
Total AFS securities: Gross unrealized losses | 1,813 | 922 |
Total AFS securities: Fair value | 57,232 | 55,203 |
HTM securities | ||
HTM: Amortized Cost | 25,336 | 23,599 |
HTM: Gross unrealized gains | 1 | 8 |
HTM: Gross unrealized losses | 1,255 | 526 |
HTM securities: Fair value | 24,082 | 23,081 |
U.S. Government and Agency Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 53,461 | 49,645 |
AFS debt securities: Gross unrealized gains | 14 | 28 |
AFS debt securities: Gross unrealized losses | 1,684 | 836 |
AFS debt securities: Fair value | 51,791 | 48,837 |
HTM securities | ||
HTM: Amortized Cost | 24,887 | 23,310 |
HTM: Gross unrealized gains | 0 | 7 |
HTM: Gross unrealized losses | 1,247 | 525 |
HTM securities: Fair value | 23,640 | 22,792 |
U.S. Treasury Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 33,093 | 26,842 |
AFS debt securities: Gross unrealized gains | 0 | 0 |
AFS debt securities: Gross unrealized losses | 1,026 | 589 |
AFS debt securities: Fair value | 32,067 | 26,253 |
HTM securities | ||
HTM: Amortized Cost | 13,387 | 11,424 |
HTM: Gross unrealized gains | 0 | 0 |
HTM: Gross unrealized losses | 630 | 305 |
HTM securities: Fair value | 12,757 | 11,119 |
U.S. Agency Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 20,368 | 22,803 |
AFS debt securities: Gross unrealized gains | 14 | 28 |
AFS debt securities: Gross unrealized losses | 658 | 247 |
AFS debt securities: Fair value | 19,724 | 22,584 |
HTM securities | ||
HTM: Amortized Cost | 11,500 | 11,886 |
HTM: Gross unrealized gains | 0 | 7 |
HTM: Gross unrealized losses | 617 | 220 |
HTM securities: Fair value | 10,883 | 11,673 |
Corporate and Other Debt | ||
AFS securities | ||
AFS debt securities: Amortized cost | 5,554 | 6,414 |
AFS debt securities: Gross unrealized gains | 16 | 23 |
AFS debt securities: Gross unrealized losses | 129 | 76 |
AFS debt securities: Fair value | 5,441 | 6,361 |
CMBS: Agency | ||
AFS securities | ||
AFS debt securities: Amortized cost | 1,198 | 1,370 |
AFS debt securities: Gross unrealized gains | 1 | 2 |
AFS debt securities: Gross unrealized losses | 70 | 49 |
AFS debt securities: Fair value | 1,129 | 1,323 |
CMBS: Non-Agency | ||
AFS securities | ||
AFS debt securities: Amortized cost | 465 | 1,102 |
AFS debt securities: Gross unrealized gains | 0 | 0 |
AFS debt securities: Gross unrealized losses | 18 | 8 |
AFS debt securities: Fair value | 447 | 1,094 |
HTM securities | ||
HTM: Amortized Cost | 449 | 289 |
HTM: Gross unrealized gains | 1 | 1 |
HTM: Gross unrealized losses | 8 | 1 |
HTM securities: Fair value | 442 | 289 |
Corporate Bonds | ||
AFS securities | ||
AFS debt securities: Amortized cost | 1,402 | 1,379 |
AFS debt securities: Gross unrealized gains | 0 | 5 |
AFS debt securities: Gross unrealized losses | 34 | 12 |
AFS debt securities: Fair value | 1,368 | 1,372 |
State and Municipal Securities | ||
AFS securities | ||
AFS debt securities: Amortized cost | 200 | |
AFS debt securities: Gross unrealized gains | 0 | |
AFS debt securities: Gross unrealized losses | 0 | |
AFS debt securities: Fair value | 200 | |
CLO | ||
AFS securities | ||
AFS debt securities: Amortized cost | 262 | 398 |
AFS debt securities: Gross unrealized gains | 0 | 1 |
AFS debt securities: Gross unrealized losses | 0 | 0 |
AFS debt securities: Fair value | 262 | 399 |
FFELP Student Loan ABS | ||
AFS securities | ||
AFS debt securities: Amortized cost | 2,027 | 2,165 |
AFS debt securities: Gross unrealized gains | 15 | 15 |
AFS debt securities: Gross unrealized losses | 7 | 7 |
AFS debt securities: Fair value | $ 2,035 | $ 2,173 |
HTM securities | ||
Percent of principal balance and interest guaranteed by the U.S. Department of Education | 95.00% | 95.00% |
Investment Securities (Investme
Investment Securities (Investment Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Investment securities | ||
Investment securities: Fair Value, Less than 12 Months | $ 48,181 | $ 46,712 |
Investment securities: Fair Value, 12 Months or Longer | 26,865 | 19,563 |
Investment securities: Fair Value | 75,046 | 66,275 |
Investment securities: Gross Unrealized Loss, Less than 12 Months | 1,603 | 858 |
Investment securities: Gross Unrealized Loss, 12 Months or Longer | 1,465 | 590 |
Investment securities: Gross Unrealized Loss | 3,068 | 1,448 |
AFS Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 42,511 | 37,101 |
AFS: Fair Value, 12 Months or Longer | 8,632 | 7,753 |
AFS: Fair Value, Total | 51,143 | 44,854 |
AFS: Gross Unrealized Losses, Less than 12 Months | 1,481 | 747 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 332 | 175 |
AFS: Gross Unrealized Losses, Total | 1,813 | 922 |
AFS Debt Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 37,101 | |
AFS: Fair Value, 12 Months or Longer | 7,748 | |
AFS: Fair Value, Total | 44,849 | |
AFS: Gross Unrealized Losses, Less than 12 Months | 747 | |
AFS: Gross Unrealized Losses, 12 Months or Longer | 165 | |
AFS: Gross Unrealized Losses, Total | 912 | |
AFS Debt Securities | U.S. Government and Agency Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 39,853 | 34,614 |
AFS: Fair Value, 12 Months or Longer | 7,888 | 6,800 |
AFS: Fair Value, Total | 47,741 | 41,414 |
AFS: Gross Unrealized Losses, Less than 12 Months | 1,383 | 687 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 301 | 149 |
AFS: Gross Unrealized Losses, Total | 1,684 | 836 |
AFS Debt Securities | U.S. Treasury Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 26,238 | 21,941 |
AFS: Fair Value, 12 Months or Longer | 5,284 | 4,287 |
AFS: Fair Value, Total | 31,522 | 26,228 |
AFS: Gross Unrealized Losses, Less than 12 Months | 858 | 495 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 168 | 94 |
AFS: Gross Unrealized Losses, Total | 1,026 | 589 |
AFS Debt Securities | U.S. Agency Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 13,615 | 12,673 |
AFS: Fair Value, 12 Months or Longer | 2,604 | 2,513 |
AFS: Fair Value, Total | 16,219 | 15,186 |
AFS: Gross Unrealized Losses, Less than 12 Months | 525 | 192 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 133 | 55 |
AFS: Gross Unrealized Losses, Total | 658 | 247 |
AFS Debt Securities | Corporate and Other Debt | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 2,658 | 2,487 |
AFS: Fair Value, 12 Months or Longer | 744 | 948 |
AFS: Fair Value, Total | 3,402 | 3,435 |
AFS: Gross Unrealized Losses, Less than 12 Months | 98 | 60 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 31 | 16 |
AFS: Gross Unrealized Losses, Total | 129 | 76 |
AFS Debt Securities | CMBS: Agency | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 828 | 930 |
AFS: Fair Value, 12 Months or Longer | 0 | 0 |
AFS: Fair Value, Total | 828 | 930 |
AFS: Gross Unrealized Losses, Less than 12 Months | 70 | 49 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
AFS: Gross Unrealized Losses, Total | 70 | 49 |
AFS Debt Securities | CMBS: Non-Agency | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 224 | 257 |
AFS: Fair Value, 12 Months or Longer | 223 | 559 |
AFS: Fair Value, Total | 447 | 816 |
AFS: Gross Unrealized Losses, Less than 12 Months | 7 | 1 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 11 | 7 |
AFS: Gross Unrealized Losses, Total | 18 | 8 |
AFS Debt Securities | Corporate Bonds | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 725 | 316 |
AFS: Fair Value, 12 Months or Longer | 521 | 389 |
AFS: Fair Value, Total | 1,246 | 705 |
AFS: Gross Unrealized Losses, Less than 12 Months | 14 | 3 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 20 | 9 |
AFS: Gross Unrealized Losses, Total | 34 | 12 |
AFS Debt Securities | FFELP Student Loan ABS | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 881 | 984 |
AFS: Fair Value, 12 Months or Longer | 0 | 0 |
AFS: Fair Value, Total | 881 | 984 |
AFS: Gross Unrealized Losses, Less than 12 Months | 7 | 7 |
AFS: Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
AFS: Gross Unrealized Losses, Total | 7 | 7 |
AFS Equity Securities | ||
AFS securities | ||
AFS: Fair Value, Less than 12 Months | 0 | |
AFS: Fair Value, 12 Months or Longer | 5 | |
AFS: Fair Value, Total | 5 | |
AFS: Gross Unrealized Losses, Less than 12 Months | 0 | |
AFS: Gross Unrealized Losses, 12 Months or Longer | 10 | |
AFS: Gross Unrealized Losses, Total | 10 | |
HTM securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 5,670 | 9,611 |
HTM: Fair Value, 12 Months or Longer | 18,233 | 11,810 |
HTM: Fair Value, Total | 23,903 | 21,421 |
HTM: Gross Unrealized Losses, Less than 12 Months | 122 | 111 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 1,133 | 415 |
HTM: Gross Unrealized Losses, Total | 1,255 | 526 |
HTM securities | U.S. Government and Agency Securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 5,475 | 9,487 |
HTM: Fair Value, 12 Months or Longer | 18,165 | 11,810 |
HTM: Fair Value, Total | 23,640 | 21,297 |
HTM: Gross Unrealized Losses, Less than 12 Months | 117 | 110 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 1,130 | 415 |
HTM: Gross Unrealized Losses, Total | 1,247 | 525 |
HTM securities | U.S. Treasury Securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 3,102 | 6,608 |
HTM: Fair Value, 12 Months or Longer | 9,655 | 4,512 |
HTM: Fair Value, Total | 12,757 | 11,120 |
HTM: Gross Unrealized Losses, Less than 12 Months | 44 | 86 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 586 | 219 |
HTM: Gross Unrealized Losses, Total | 630 | 305 |
HTM securities | U.S. Agency Securities | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 2,373 | 2,879 |
HTM: Fair Value, 12 Months or Longer | 8,510 | 7,298 |
HTM: Fair Value, Total | 10,883 | 10,177 |
HTM: Gross Unrealized Losses, Less than 12 Months | 73 | 24 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 544 | 196 |
HTM: Gross Unrealized Losses, Total | 617 | 220 |
HTM securities | CMBS: Non-Agency | ||
HTM securities | ||
HTM: Fair Value, Less than 12 Months | 195 | 124 |
HTM: Fair Value, 12 Months or Longer | 68 | 0 |
HTM: Fair Value, Total | 263 | 124 |
HTM: Gross Unrealized Losses, Less than 12 Months | 5 | 1 |
HTM: Gross Unrealized Losses, 12 Months or Longer | 3 | 0 |
HTM: Gross Unrealized Losses, Total | $ 8 | $ 1 |
Investment Securities (Invest_2
Investment Securities (Investment Securities by Contractual Maturity) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Amortized Cost | ||
AFS debt securities: Amortized cost, total | $ 56,059 | |
AFS equity securities: Amortized cost | 15 | |
AFS Securities: Amortized cost, total | $ 59,015 | 56,074 |
HTM securities: Amortized cost, total | 25,336 | 23,599 |
Investment securities: Amortized cost, total | 84,351 | 79,673 |
Fair Value | ||
AFS debt securities: Fair value, total | 55,198 | |
AFS equity securities: Fair value | 5 | |
AFS securities: Fair value, total | 57,232 | 55,203 |
HTM securities: Fair value, total | 24,082 | 23,081 |
Investment securities: Fair value, total | $ 81,314 | 78,284 |
Average Yield | ||
AFS securities: Annualized average yield, total | 1.90% | |
HTM securities: Annualized average yield, total | 2.20% | |
Investment securities: Annualized average yield, total | 2.00% | |
U.S. Government and Agency Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, total | $ 53,461 | 49,645 |
HTM securities: Amortized cost, total | 24,887 | 23,310 |
Fair Value | ||
AFS debt securities: Fair value, total | 51,791 | 48,837 |
HTM securities: Fair value, total | $ 23,640 | 22,792 |
Average Yield | ||
AFS debt securities: Annualized average yield, total | 1.90% | |
HTM securities: Annualized average yield, total | 2.20% | |
U.S. Treasury Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 3,447 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 27,517 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 2,129 | |
AFS debt securities: Amortized cost, total | 33,093 | 26,842 |
HTM securities: Amortized cost, due within 1 year | 2,126 | |
HTM securities: Amortized cost, after 1 year through 5 years | 5,423 | |
HTM securities: Amortized cost, after 5 year through 10 years | 5,112 | |
HTM securities: Amortized cost, after 10 years | 726 | |
HTM securities: Amortized cost, total | 13,387 | 11,424 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 3,432 | |
AFS debt securities: Fair value, after 1 year through 5 years | 26,734 | |
AFS debt securities: Fair value, after 5 years through 10 years | 1,901 | |
AFS debt securities: Fair value, total | 32,067 | 26,253 |
HTM securities: Fair value, due within 1 year | 2,118 | |
HTM securities: Fair value, after 1 year through 5 years | 5,303 | |
HTM securities: Fair value, after 5 years through 10 years | 4,725 | |
HTM securities: Fair value, after 10 years | 611 | |
HTM securities: Fair value, total | $ 12,757 | 11,119 |
Average Yield | ||
AFS debt securities: Annualized average yield, due within 1 year | 1.30% | |
AFS debt securities: Annualized average yield, after 1 year through 5 years | 1.90% | |
AFS debt securities: Annualized average yield, after 5 years through 10 years | 1.40% | |
HTM securities: Annualized average yield, due within 1 year | 1.20% | |
HTM securities: Annualized average yield, after 1 years through 5 years | 2.00% | |
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 | $ 473 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 806 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 1,718 | |
AFS debt securities: Amortized cost, after 10 years | 17,371 | |
AFS debt securities: Amortized cost, total | 20,368 | 22,803 |
HTM securities: Amortized cost, after 5 year through 10 years | 31 | |
HTM securities: Amortized cost, after 10 years | 11,469 | |
HTM securities: Amortized cost, total | 11,500 | 11,886 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 467 | |
AFS debt securities: Fair value, after 1 year through 5 years | 789 | |
AFS debt securities: Fair value, after 5 years through 10 years | 1,644 | |
AFS debt securities: Fair value, after 10 years | 16,824 | |
AFS debt securities: Fair value, total | 19,724 | 22,584 |
HTM securities: Fair value, after 5 years through 10 years | 30 | |
HTM securities: Fair value, after 10 years | 10,853 | |
HTM securities: Fair value, total | $ 10,883 | 11,673 |
Average Yield | ||
AFS debt securities: Annualized average yield, due within 1 year | 1.00% | |
AFS debt securities: Annualized average yield, after 1 year through 5 years | 1.20% | |
AFS debt securities: Annualized average yield, after 5 years through 10 years | 1.80% | |
AFS debt securities: Annualized average yield, after 10 years | 2.10% | |
HTM securities: Annualized average yield, after 5 years through 10 years | 1.90% | |
HTM securities: Annualized average yield, after 10 year | 2.60% | |
Corporate and Other Debt | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, total | $ 5,554 | 6,414 |
Fair Value | ||
AFS debt securities: Fair value, total | $ 5,441 | 6,361 |
Average Yield | ||
AFS debt securities: Annualized average yield, total | 1.80% | |
HTM securities: Annualized average yield, total | 4.00% | |
CMBS: Agency | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 3 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 384 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 40 | |
AFS debt securities: Amortized cost, after 10 years | 771 | |
AFS debt securities: Amortized cost, total | 1,198 | 1,370 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 3 | |
AFS debt securities: Fair value, after 1 year through 5 years | 382 | |
AFS debt securities: Fair value, after 5 years through 10 years | 41 | |
AFS debt securities: Fair value, after 10 years | 703 | |
AFS debt securities: Fair value, total | $ 1,129 | 1,323 |
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 | 1.30% | |
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 | 429 | |
AFS debt securities: Amortized cost, total | 465 | 1,102 |
HTM securities: Amortized cost, due within 1 year | 68 | |
HTM securities: Amortized cost, after 1 year through 5 years | 61 | |
HTM securities: Amortized cost, after 5 year through 10 years | 301 | |
HTM securities: Amortized cost, after 10 years | 19 | |
HTM securities: Amortized cost, total | 449 | 289 |
Fair Value | ||
AFS debt securities: Fair value, after 5 years through 10 years | 34 | |
AFS debt securities: Fair value, after 10 years | 413 | |
AFS debt securities: Fair value, total | 447 | 1,094 |
HTM securities: Fair value, due within 1 year | 68 | |
HTM securities: Fair value, after 1 year through 5 years | 61 | |
HTM securities: Fair value, after 5 years through 10 years | 295 | |
HTM securities: Fair value, after 10 years | 18 | |
HTM securities: Fair value, total | $ 442 | 289 |
Average Yield | ||
AFS debt securities: Annualized average yield, after 5 years through 10 years | 2.50% | |
AFS debt securities: Annualized average yield, after 10 years | 2.40% | |
HTM securities: Annualized average yield, due within 1 year | 3.50% | |
HTM securities: Annualized average yield, after 1 years through 5 years | 4.40% | |
HTM securities: Annualized average yield, after 5 years through 10 years | 4.00% | |
HTM securities: Annualized average yield, after 10 year | 4.00% | |
Corporate Bonds | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, due within 1 year | $ 70 | |
AFS debt securities: Amortized cost, after 1 year through 5 years | 1,270 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 62 | |
AFS debt securities: Amortized cost, total | 1,402 | 1,379 |
Fair Value | ||
AFS debt securities: Fair value, due within 1 year | 70 | |
AFS debt securities: Fair value, after 1 year through 5 years | 1,237 | |
AFS debt securities: Fair value, after 5 years through 10 years | 61 | |
AFS debt securities: Fair value, total | $ 1,368 | 1,372 |
Average Yield | ||
AFS debt securities: Annualized average yield, due within 1 year | 1.70% | |
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 | 3.40% | |
State and Municipal Securities | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, after 1 year through 5 years | $ 200 | |
AFS debt securities: Amortized cost, total | 200 | |
Fair Value | ||
AFS debt securities: Fair value, after 1 year through 5 years | 200 | |
AFS debt securities: Fair value, total | $ 200 | |
Average Yield | ||
AFS debt securities: Annualized average yield, after 1 year through 5 years | 3.50% | |
CLO | ||
Amortized Cost | ||
AFS debt securities: Amortized cost, after 5 years through 10 years | $ 64 | |
AFS debt securities: Amortized cost, after 10 years | 198 | |
AFS debt securities: Amortized cost, total | 262 | 398 |
Fair Value | ||
AFS debt securities: Fair value, after 5 years through 10 years | 64 | |
AFS debt securities: Fair value, after 10 years | 198 | |
AFS debt securities: Fair value, total | $ 262 | 399 |
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 | $ 84 | |
AFS debt securities: Amortized cost, after 5 years through 10 years | 319 | |
AFS debt securities: Amortized cost, after 10 years | 1,624 | |
AFS debt securities: Amortized cost, total | 2,027 | 2,165 |
Fair Value | ||
AFS debt securities: Fair value, after 1 year through 5 years | 83 | |
AFS debt securities: Fair value, after 5 years through 10 years | 316 | |
AFS debt securities: Fair value, after 10 years | 1,636 | |
AFS debt securities: Fair value, total | $ 2,035 | $ 2,173 |
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 | 1.20% |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Available-for-sale Securities [Abstract] | ||||
Gross realized gains | $ 5 | $ 11 | $ 11 | $ 38 |
Gross realized (losses) | 0 | 0 | (3) | (11) |
Total | $ 5 | $ 11 | $ 8 | $ 27 |
Collateralized Transactions (Of
Collateralized Transactions (Offsetting of Certain Collateralized Transactions) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Securities Purchased under Agreements to Resell | ||
Gross amounts | $ 212,796 | $ 199,044 |
Amounts offset | (143,710) | (114,786) |
Net amounts presented | 69,086 | 84,258 |
Amounts not offset | (63,821) | (78,009) |
Net amounts | 5,265 | 6,249 |
Securities Borrowed | ||
Gross amounts | 161,903 | 133,431 |
Amounts offset | (19,414) | (9,421) |
Net amounts presented | 142,489 | 124,010 |
Amounts not offset | (136,940) | (119,358) |
Net amounts | 5,549 | 4,652 |
Securities Sold under Agreements to Repurchase | ||
Gross amounts | 204,038 | 171,210 |
Amounts offset | (143,710) | (114,786) |
Net amounts presented | 60,328 | 56,424 |
Amounts not offset | (52,421) | (48,067) |
Net amounts | 7,907 | 8,357 |
Securities Loaned | ||
Gross amounts | 31,247 | 23,014 |
Amounts offset | (19,414) | (9,422) |
Net amounts presented | 11,833 | 13,592 |
Amounts not offset | (11,664) | (13,271) |
Net amounts | 169 | 321 |
Not Subject to Legally Enforceable Master Netting Agreements | ||
Securities purchased under agreements to resell | 3,640 | 5,687 |
Securities borrowed | 1,377 | 572 |
Securities sold under agreements to repurchase | 6,074 | 6,945 |
Securities loaned | $ 142 | $ 307 |
Collateralized Transactions (Gr
Collateralized Transactions (Gross Secured Financing Balances) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | $ 204,038 | $ 171,210 |
Securities loaned | 31,247 | 23,014 |
Total included in the offsetting disclosure | 235,285 | 194,224 |
Trading liabilities - Obligation to return securities received as collateral | 18,727 | 22,555 |
Total | 254,012 | 216,779 |
U.S. Treasury and Agency Securities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 54,625 | 43,346 |
State and Municipal Securities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 1,516 | 2,451 |
Other Sovereign Government Obligations | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 115,046 | 87,141 |
Securities loaned | 19,850 | 9,489 |
ABS | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 2,257 | 1,130 |
Corporate and Other Debt | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 8,142 | 7,737 |
Corporate Equities | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 21,756 | 28,497 |
Securities loaned | 11,270 | 13,174 |
Trading liabilities - Obligation to return securities received as collateral | 18,727 | 22,555 |
Other | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 696 | 908 |
Securities loaned | 127 | 351 |
Overnight and Open | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 69,184 | 41,332 |
Securities loaned | 19,930 | 12,130 |
Total included in the offsetting disclosure | 89,114 | 53,462 |
Trading liabilities - Obligation to return securities received as collateral | 18,727 | 22,555 |
Total | 107,841 | 76,017 |
Less than 30 days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 59,181 | 66,593 |
Securities loaned | 3,698 | 873 |
Total included in the offsetting disclosure | 62,879 | 67,466 |
Trading liabilities - Obligation to return securities received as collateral | 0 | 0 |
Total | 62,879 | 67,466 |
30-90 days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 32,727 | 28,682 |
Securities loaned | 1,733 | 1,577 |
Total included in the offsetting disclosure | 34,460 | 30,259 |
Trading liabilities - Obligation to return securities received as collateral | 0 | 0 |
Total | 34,460 | 30,259 |
Over 90 days | ||
Gross Secured Financing Balances | ||
Securities sold under agreements to repurchase | 42,946 | 34,603 |
Securities loaned | 5,886 | 8,434 |
Total included in the offsetting disclosure | 48,832 | 43,037 |
Trading liabilities - Obligation to return securities received as collateral | 0 | 0 |
Total | $ 48,832 | $ 43,037 |
Collateralized Transactions (As
Collateralized Transactions (Assets Pledged) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Collateralized Transactions | ||
Trading assets | $ 31,347 | $ 31,324 |
Loans (gross of allowance for loan losses) | 570 | 228 |
Total | $ 31,917 | $ 31,552 |
Collateralized Transactions (Co
Collateralized Transactions (Collateral Received) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Collateralized Transactions | ||
Collateral received with right to sell or repledge | $ 658,309 | $ 599,244 |
Collateral that was sold or repledged | $ 505,108 | $ 475,113 |
Collateralized Transactions (Cu
Collateralized Transactions (Customer Margin Lending and Other) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Collateralized Transactions | ||
Net customer receivables representing margin loans | $ 33,821 | $ 32,112 |
Collateralized Transactions (Re
Collateralized Transactions (Restricted Cash and Segregated Securities) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Collateralized Transactions | |||
Restricted cash | $ 33,202 | $ 34,231 | $ 32,731 |
Segregated securities | 25,820 | 20,549 | |
Total | $ 59,022 | $ 54,780 |
Loans, Lending Commitments an_3
Loans, Lending Commitments and Allowance for Credit Losses (Loans by Type) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Loans Held for Investment | ||||
Loans held for investment, gross | $ 98,561 | $ 93,177 | ||
Allowance for loan losses | (231) | (224) | $ (245) | $ (274) |
Loans held for investment, net | 98,330 | 92,953 | ||
Loans Held for Sale | ||||
Loans held for sale, gross | 11,653 | 11,173 | ||
Allowance for loan losses | 0 | 0 | ||
Loans held for sale, net | 11,653 | 11,173 | ||
Total Loans | ||||
Total loans, gross | 110,214 | 104,350 | ||
Allowance for loan losses | (231) | (224) | ||
Total loans, net | 109,983 | 104,126 | ||
Fixed rate loans, net | 15,263 | 13,339 | ||
Floating or adjustable rate loans, net | 94,720 | 90,787 | ||
Loans to non-U.S. borrowers, net | 14,346 | 9,977 | ||
Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 97,566 | 92,010 | ||
Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 473 | 394 | ||
Substandard | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 521 | 766 | ||
Doubtful | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 1 | 7 | ||
Loss | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Corporate | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 35,439 | 29,754 | ||
Allowance for loan losses | (135) | (126) | (149) | (195) |
Loans Held for Sale | ||||
Loans held for sale, gross | 10,035 | 9,456 | ||
Total Loans | ||||
Total loans, gross | 45,474 | 39,210 | ||
Corporate | Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 35,062 | 29,166 | ||
Corporate | Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 108 | 188 | ||
Corporate | Substandard | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 268 | 393 | ||
Corporate | Doubtful | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 1 | 7 | ||
Corporate | Loss | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Consumer | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 28,321 | 26,808 | ||
Allowance for loan losses | (5) | (4) | (4) | (4) |
Loans Held for Sale | ||||
Loans held for sale, gross | 0 | 0 | ||
Total Loans | ||||
Total loans, gross | 28,321 | 26,808 | ||
Consumer | Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 28,316 | 26,802 | ||
Consumer | Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 5 | 6 | ||
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 | 26,644 | 26,635 | ||
Allowance for loan losses | (20) | (24) | (24) | (20) |
Loans Held for Sale | ||||
Loans held for sale, gross | 29 | 35 | ||
Total Loans | ||||
Total loans, gross | 26,673 | 26,670 | ||
Residential Real Estate | Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 26,563 | 26,562 | ||
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 | 81 | 73 | ||
Residential Real Estate | Doubtful | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Residential Real Estate | Loss | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 0 | 0 | ||
Wholesale Real Estate | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 8,157 | 9,980 | ||
Allowance for loan losses | (71) | (70) | $ (68) | $ (55) |
Loans Held for Sale | ||||
Loans held for sale, gross | 1,589 | 1,682 | ||
Total Loans | ||||
Total loans, gross | 9,746 | 11,662 | ||
Wholesale Real Estate | Pass | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 7,625 | 9,480 | ||
Wholesale Real Estate | Special Mention | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 360 | 200 | ||
Wholesale Real Estate | Substandard | ||||
Loans Held for Investment | ||||
Loans held for investment, gross | 172 | 300 | ||
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, Lending Commitments an_4
Loans, Lending Commitments and Allowance for Credit Losses (Impaired Loans and Lending Commitments) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Impaired Loans | ||
Loans: With allowance | $ 23 | $ 16 |
Loans: Without allowance | 102 | 163 |
Total impaired loans | 125 | 179 |
Loans: UPB | 132 | 192 |
Lending Commitments: With allowance | 21 | |
Lending Commitments: Without allowance | 24 | 199 |
Impaired loans | 125 | 179 |
Allowance for loan losses | 231 | 224 |
Americas | ||
Impaired Loans | ||
Total impaired loans | 125 | 160 |
Impaired loans | 125 | 160 |
Allowance for loan losses | 192 | 194 |
EMEA | ||
Impaired Loans | ||
Total impaired loans | 0 | 9 |
Impaired loans | 0 | 9 |
Allowance for loan losses | 38 | 27 |
Asia | ||
Impaired Loans | ||
Total impaired loans | 0 | 10 |
Impaired loans | 0 | 10 |
Allowance for loan losses | 1 | 3 |
Corporate | ||
Impaired Loans | ||
Loans: With allowance | 23 | 16 |
Loans: Without allowance | 42 | 118 |
Total impaired loans | 65 | 134 |
Loans: UPB | 71 | 146 |
Lending Commitments: With allowance | 21 | |
Lending Commitments: Without allowance | 24 | 199 |
Impaired loans | 65 | 134 |
Residential Real Estate | ||
Impaired Loans | ||
Loans: With allowance | 0 | 0 |
Loans: Without allowance | 60 | 45 |
Total impaired loans | 60 | 45 |
Loans: UPB | 61 | 46 |
Lending Commitments: With allowance | 0 | |
Lending Commitments: Without allowance | 0 | 0 |
Impaired loans | $ 60 | $ 45 |
Loans, Lending Commitments an_5
Loans, Lending Commitments and Allowance for Credit Losses (TDR) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Troubled Debt Restructurings | ||
Loans | $ 46 | $ 51 |
Lending commitments | 37 | 28 |
Allowance for loan losses and lending commitments | $ 4 | $ 10 |
Loans, Lending Commitments an_6
Loans, Lending Commitments 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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Allowance for loan losses rollforward | ||||
Beginning balance | $ 224 | $ 274 | ||
Gross charge-offs | (4) | (75) | ||
Recoveries | 54 | 1 | ||
Net recoveries (charge-offs) | 50 | (74) | ||
Provision (release) | $ 1 | $ 13 | (33) | 42 |
Other | (10) | 3 | ||
Ending balance | 231 | 245 | 231 | 245 |
Inherent | 226 | 238 | 226 | 238 |
Specific | 5 | 7 | 5 | 7 |
Allowance for lending commitments rollforward | ||||
Beginning balance | 198 | 190 | ||
Provision for (release of) lending commitments | 1 | (6) | 6 | (10) |
Other | (3) | 1 | ||
Ending balance | 201 | 181 | 201 | 181 |
Inherent | 194 | 178 | 194 | 178 |
Specific | 7 | 3 | 7 | 3 |
Corporate | ||||
Allowance for loan losses rollforward | ||||
Beginning balance | 126 | 195 | ||
Gross charge-offs | (4) | (75) | ||
Recoveries | 54 | 1 | ||
Net recoveries (charge-offs) | 50 | (74) | ||
Provision (release) | (39) | 26 | ||
Other | (2) | 2 | ||
Ending balance | 135 | 149 | 135 | 149 |
Inherent | 130 | 142 | 130 | 142 |
Specific | 5 | 7 | 5 | 7 |
Allowance for lending commitments rollforward | ||||
Beginning balance | 194 | 185 | ||
Provision for (release of) lending commitments | 5 | (10) | ||
Other | (2) | 1 | ||
Ending balance | 197 | 176 | 197 | 176 |
Inherent | 190 | 173 | 190 | 173 |
Specific | 7 | 3 | 7 | 3 |
Consumer | ||||
Allowance for loan losses rollforward | ||||
Beginning balance | 4 | 4 | ||
Gross charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net recoveries (charge-offs) | 0 | 0 | ||
Provision (release) | 1 | 0 | ||
Other | 0 | 0 | ||
Ending balance | 5 | 4 | 5 | 4 |
Inherent | 5 | 4 | 5 | 4 |
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 | 24 | 20 | ||
Gross charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net recoveries (charge-offs) | 0 | 0 | ||
Provision (release) | (4) | 4 | ||
Other | 0 | 0 | ||
Ending balance | 20 | 24 | 20 | 24 |
Inherent | 20 | 24 | 20 | 24 |
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 | 70 | 55 | ||
Gross charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net recoveries (charge-offs) | 0 | 0 | ||
Provision (release) | 9 | 12 | ||
Other | (8) | 1 | ||
Ending balance | 71 | 68 | 71 | 68 |
Inherent | 71 | 68 | 71 | 68 |
Specific | 0 | 0 | 0 | 0 |
Allowance for lending commitments rollforward | ||||
Beginning balance | 3 | 4 | ||
Provision for (release of) lending commitments | 1 | 0 | ||
Other | (1) | 0 | ||
Ending balance | 3 | 4 | 3 | 4 |
Inherent | 3 | 4 | 3 | 4 |
Specific | $ 0 | $ 0 | $ 0 | $ 0 |
Loans, Lending Commitments an_7
Loans, Lending Commitments and Allowance for Credit Losses (Employee Loans) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Employee Loans | |||
Balance | $ 3,491 | $ 4,185 | |
Allowance for loan losses | (70) | (77) | |
Balance, net | $ 3,421 | $ 4,108 | |
Minimum | |||
Employee Loans | |||
Employee loan repayment terms | 1 year | 1 year | |
Maximum | |||
Employee Loans | |||
Employee loan repayment terms | 20 years | 20 years |
Equity Method Investments (Equi
Equity Method Investments (Equity Method Investment Balances) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures | |||||
Equity method investments | $ 2,452 | $ 2,452 | $ 2,623 | ||
Income (loss) from equity method investments | $ 8 | $ 0 | $ 62 | $ 0 |
Equity Method Investments (Inve
Equity Method Investments (Investees) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Equity Method Investments | ||||
Income from equity method investments | $ 8 | $ 0 | $ 62 | $ 0 |
MUMSS | ||||
Equity Method Investments | ||||
Voting interest | 40.00% | 40.00% | ||
Income from equity method investments | $ 17 | $ 25 | $ 99 | $ 96 |
MUFG | MUMSS | ||||
Equity Method Investments | ||||
Voting interest | 60.00% | 60.00% |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Savings and demand deposits | $ 143,962 | $ 144,487 |
Time deposits | 31,223 | 14,949 |
Total | 175,185 | 159,436 |
Deposits subject to FDIC insurance | 134,872 | 127,017 |
Time deposits that equal or exceed the FDIC insurance limit | 12 | $ 38 |
Time Deposit Maturities | ||
2,018 | 7,238 | |
2,019 | 12,519 | |
2,020 | 7,879 | |
2,021 | 1,569 | |
2,022 | 631 | |
Thereafter | $ 1,387 |
Borrowings and Other Secured _3
Borrowings and Other Secured Financings (Long-Term Borrowings) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Borrowings and Other Secured Financings | ||
Original maturities of one year or less | $ 940 | $ 1,519 |
Original maturities greater than one year | ||
Senior | 180,136 | 180,835 |
Subordinated | 9,813 | 10,228 |
Total | 189,949 | 191,063 |
Total borrowings | $ 190,889 | $ 192,582 |
Weighted average stated maturity, in years | 6 years 7 months | 6 years 7 months |
Borrowings and Other Secured _4
Borrowings and Other Secured Financings (Other Secured Financings) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Borrowings and Other Secured Financings | ||
Secured financings with original maturities greater than one year | $ 7,840 | $ 8,685 |
Secured financings with original maturities one year or less | 1,555 | 2,034 |
Failed sales | 662 | 552 |
Total other secured financings | $ 10,057 | $ 11,271 |
Commitments, Guarantees and C_3
Commitments, Guarantees and Contingencies (Commitments) (Details) $ in Millions | Sep. 30, 2018USD ($) |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | $ 104,067 |
1-3 (years) | 33,607 |
3-5 (years) | 46,742 |
Over 5 (years) | 9,535 |
Total | 193,951 |
Commitments participated to third parties | 7,620 |
Commitments settled within three business days | 77,520 |
Corporate Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 13,345 |
1-3 (years) | 32,893 |
3-5 (years) | 46,671 |
Over 5 (years) | 7,805 |
Total | 100,714 |
Consumer Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 7,074 |
1-3 (years) | 0 |
3-5 (years) | 11 |
Over 5 (years) | 0 |
Total | 7,085 |
Residential Real Estate Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 0 |
1-3 (years) | 83 |
3-5 (years) | 13 |
Over 5 (years) | 253 |
Total | 349 |
Wholesale Real Estate Lending | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 129 |
1-3 (years) | 530 |
3-5 (years) | 0 |
Over 5 (years) | 0 |
Total | 659 |
Forward-starting Secured Financing Receivables | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 82,818 |
1-3 (years) | 0 |
3-5 (years) | 0 |
Over 5 (years) | 1,181 |
Total | 83,999 |
Investment Activities | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 517 |
1-3 (years) | 100 |
3-5 (years) | 47 |
Over 5 (years) | 257 |
Total | 921 |
Letters of Credit and Other Financial Guarantees | |
Commitment, Fiscal Year Maturity | |
Less than 1 (year) | 184 |
1-3 (years) | 1 |
3-5 (years) | 0 |
Over 5 (years) | 39 |
Total | $ 224 |
Commitments, Guarantees and C_4
Commitments, Guarantees and Contingencies (Obligations under Guarantee Arrangements) (Details) $ in Millions | Sep. 30, 2018USD ($) |
Credit Derivatives | |
Guarantees | |
Maximum potential payout/notional | $ 200,502 |
Carrying amount: (asset) | (374) |
Collateral/recourse | 0 |
Credit Derivatives | Less Than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 47,946 |
Credit Derivatives | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 53,667 |
Credit Derivatives | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 58,185 |
Credit Derivatives | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 40,704 |
Other Credit Contracts | |
Guarantees | |
Maximum potential payout/notional | 129 |
Carrying amount: liability | 21 |
Collateral/recourse | 0 |
Other Credit Contracts | Less Than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Other Credit Contracts | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Other Credit Contracts | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Other Credit Contracts | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 129 |
Non-credit Derivatives | |
Guarantees | |
Maximum potential payout/notional | 4,396,508 |
Carrying amount: liability | 40,951 |
Collateral/recourse | 0 |
Non-credit Derivatives | Less Than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 1,870,310 |
Non-credit Derivatives | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 1,471,732 |
Non-credit Derivatives | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 405,669 |
Non-credit Derivatives | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 648,797 |
Standby Letters of Credit and Other Financial Guarantees Issued | |
Guarantees | |
Maximum potential payout/notional | 8,282 |
Carrying amount: (asset) | (234) |
Collateral/recourse | 6,717 |
Standby letters of credit | 600 |
Standby Letters of Credit and Other Financial Guarantees Issued | Less Than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 1,009 |
Standby Letters of Credit and Other Financial Guarantees Issued | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 913 |
Standby Letters of Credit and Other Financial Guarantees Issued | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 1,452 |
Standby Letters of Credit and Other Financial Guarantees Issued | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 4,908 |
Market Value Guarantees | |
Guarantees | |
Maximum potential payout/notional | 141 |
Carrying amount: (asset) | 0 |
Collateral/recourse | 3 |
Market Value Guarantees | Less Than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 16 |
Market Value Guarantees | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 101 |
Market Value Guarantees | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 24 |
Market Value Guarantees | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Liquidity Facilities | |
Guarantees | |
Maximum potential payout/notional | 3,994 |
Carrying amount: (asset) | (6) |
Collateral/recourse | 6,459 |
Liquidity Facilities | Less Than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 3,994 |
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 | 23,216 |
Carrying amount: liability | 9 |
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 | 1 |
Whole Loan Sales Guarantees | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 0 |
Whole Loan Sales Guarantees | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 23,215 |
Securitizations Representations and Warranties | |
Guarantees | |
Maximum potential payout/notional | 63,208 |
Carrying amount: liability | 62 |
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 | 63,208 |
General Partner Guarantees | |
Guarantees | |
Maximum potential payout/notional | 428 |
Carrying amount: liability | 73 |
Collateral/recourse | 0 |
General Partner Guarantees | Less Than 1 (Year) | |
Guarantees | |
Maximum potential payout/notional | 4 |
General Partner Guarantees | 1 - 3 (Years) | |
Guarantees | |
Maximum potential payout/notional | 52 |
General Partner Guarantees | 3 - 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | 338 |
General Partner Guarantees | Over 5 (Years) | |
Guarantees | |
Maximum potential payout/notional | $ 34 |
Commitments, Guarantees and C_5
Commitments, Guarantees and Contingencies (Contingencies) (Details) - 9 months ended Sep. 30, 2018 - 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 | The Supreme Court of the State of New York, New York County (“Supreme Court of NY”) | |
Allegations | The complaint relates to a $275 million CDS referencing the super senior portion of the STACK 2006-1 CDO. The complaint asserts claims for common law fraud, fraudulent inducement and fraudulent concealment and alleges that the Firm misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that the Firm knew that the assets backing the CDO were of poor quality when it entered into the CDS with CDIB. | |
Damages sought | The complaint seeks compensatory damages related to the approximately $228 million that CDIB alleges it has already lost under the CDS, rescission of CDIB’s obligation to pay an additional $12 million, punitive damages, equitable relief, fees and costs. | |
China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al. | Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | $ 240 | |
US Bank National Association, solely in its capacity as Trustee of the Morgan Stanley Mortgage Loan Trust 2007-2AX (MSM 2007-2AX) v. Morgan Stanley Mortgage Capital Holdings LLC, as Successor-by-Merger to Morgan Stanley Mortgage Capital Inc. and GreenPoint Mortgage Funding, Inc. | ||
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 | |
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 (approximately $144 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 | $ 144 |
Variable Interest Entities an_3
Variable Interest Entities and Securitization Activities (Consolidated VIEs) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity | ||
VIE assets | $ 2,573 | $ 1,801 |
VIE liabilities | 878 | 463 |
OSF | ||
Variable Interest Entity | ||
VIE assets | 273 | 378 |
VIE liabilities | 0 | 3 |
MABS | ||
Variable Interest Entity | ||
VIE assets | 66 | 249 |
VIE liabilities | 44 | 210 |
Other | ||
Variable Interest Entity | ||
VIE assets | 2,234 | 1,174 |
VIE liabilities | $ 834 | $ 250 |
Variable Interest Entities an_4
Variable Interest Entities and Securitization Activities (Assets and Liabilities by Balance Sheet Caption) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Assets | |||
Cash and due from banks | $ 36,641 | $ 24,816 | $ 24,047 |
Restricted cash | 33,202 | 34,231 | $ 32,731 |
Trading assets at fair value | 283,188 | 298,282 | |
Customer and other receivables | 60,839 | 56,187 | |
Goodwill | 6,680 | 6,597 | |
Intangible assets | 2,240 | 2,448 | |
Other assets | 15,963 | 16,628 | |
Total assets | 865,517 | 851,733 | |
Liabilities | |||
Other secured financings at fair value | 4,554 | 3,863 | |
Other liabilities and accrued expenses | 17,093 | 17,157 | |
Total liabilities | 785,443 | 773,267 | |
Noncontrolling interests | 1,371 | 1,075 | |
Consolidated VIEs | |||
Assets | |||
Cash and due from banks | 99 | 69 | |
Restricted cash | 170 | 222 | |
Trading assets at fair value | 1,712 | 833 | |
Customer and other receivables | 22 | 19 | |
Goodwill | 18 | 18 | |
Intangible assets | 134 | 155 | |
Other assets | 418 | 485 | |
Total assets | 2,573 | 1,801 | |
Liabilities | |||
Other secured financings at fair value | 845 | 438 | |
Other liabilities and accrued expenses | 33 | 25 | |
Total liabilities | 878 | 463 | |
Noncontrolling interests | $ 437 | $ 189 |
Variable Interest Entities an_5
Variable Interest Entities and Securitization Activities (Non-Consolidated VIEs) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity | ||
VIE assets (UPB) | $ 73,812 | $ 89,288 |
Additional VIE assets owned | 12,231 | 11,318 |
MABS | ||
Variable Interest Entity | ||
VIE assets (UPB) | 73,812 | 89,288 |
Maximum exposure to loss | 9,461 | 11,871 |
Carrying value of exposure to loss | 8,598 | |
Residential Mortgage | ||
Variable Interest Entity | ||
VIE assets (UPB) | 9,299 | 15,636 |
Commercial Mortgage | ||
Variable Interest Entity | ||
VIE assets (UPB) | 39,554 | 46,464 |
U.S. Agency CMO | ||
Variable Interest Entity | ||
VIE assets (UPB) | 14,176 | 16,223 |
Other Consumer or Commercial Loans | ||
Variable Interest Entity | ||
VIE assets (UPB) | 10,783 | 10,965 |
CDO | ||
Variable Interest Entity | ||
VIE assets (UPB) | 15,427 | 9,807 |
Maximum exposure to loss | 2,135 | 2,052 |
Carrying value of exposure to loss | 1,505 | |
MTOB | ||
Variable Interest Entity | ||
VIE assets (UPB) | 6,314 | 5,306 |
Maximum exposure to loss | 4,011 | 3,413 |
Carrying value of exposure to loss | 23 | |
OSF | ||
Variable Interest Entity | ||
VIE assets (UPB) | 3,457 | 3,322 |
Maximum exposure to loss | 1,718 | 1,792 |
Carrying value of exposure to loss | 1,166 | |
Other | ||
Variable Interest Entity | ||
VIE assets (UPB) | 20,199 | 31,934 |
Maximum exposure to loss | 7,089 | 6,849 |
Carrying value of exposure to loss | 5,076 | |
Assets | MABS | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 10,657 | |
Assets | CDO | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 1,384 | |
Assets | MTOB | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 48 | |
Assets | OSF | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 1,202 | |
Assets | Other | ||
Variable Interest Entity | ||
Carrying value of exposure to loss | 4,914 | |
Debt and Equity Interests | ||
Variable Interest Entity | ||
Maximum exposure to loss | 8,598 | 10,657 |
Debt and Equity Interests | MABS | ||
Variable Interest Entity | ||
Maximum exposure to loss | 8,598 | 10,657 |
Carrying value of exposure to loss | 8,598 | 10,657 |
Debt and Equity Interests | Residential Mortgage | ||
Variable Interest Entity | ||
Maximum exposure to loss | 923 | 1,272 |
Debt and Equity Interests | Commercial Mortgage | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,289 | 2,331 |
Debt and Equity Interests | U.S. Agency CMO | ||
Variable Interest Entity | ||
Maximum exposure to loss | 2,822 | 3,439 |
Debt and Equity Interests | Other Consumer or Commercial Loans | ||
Variable Interest Entity | ||
Maximum exposure to loss | 3,564 | 3,615 |
Debt and Equity Interests | CDO | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,505 | 1,384 |
Carrying value of exposure to loss | 1,505 | 1,384 |
Debt and Equity Interests | MTOB | ||
Variable Interest Entity | ||
Maximum exposure to loss | 17 | 80 |
Carrying value of exposure to loss | 17 | 43 |
Debt and Equity Interests | OSF | ||
Variable Interest Entity | ||
Maximum exposure to loss | 1,579 | 1,628 |
Carrying value of exposure to loss | 1,166 | 1,202 |
Debt and Equity Interests | Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | 5,006 | 4,730 |
Carrying value of exposure to loss | 5,006 | 4,730 |
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 | 3,994 | 3,333 |
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 | 1,756 | 1,686 |
Carrying value of exposure to loss | 70 | 184 |
Commitments, Guarantees and Other | MABS | ||
Variable Interest Entity | ||
Maximum exposure to loss | 863 | 1,214 |
Commitments, Guarantees and Other | CDO | ||
Variable Interest Entity | ||
Maximum exposure to loss | 630 | 668 |
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 | 139 | 164 |
Commitments, Guarantees and Other | Other | ||
Variable Interest Entity | ||
Maximum exposure to loss | $ 327 | $ 433 |
Variable Interest Entities an_6
Variable Interest Entities and Securitization Activities (Transfers of Assets with Continuing Involvement 1) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity | ||
Derivative assets (fair value) | $ 30,639 | $ 30,813 |
Derivative liabilities (fair value) | 25,826 | 26,695 |
SPE | ||
Variable Interest Entity | ||
Retained interests | 1,405 | 988 |
Interests purchased in the secondary market (fair value) | 317 | 619 |
Derivative assets (fair value) | 140 | 227 |
Derivative liabilities (fair value) | 136 | 85 |
SPE | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 924 | 411 |
Interests purchased in the secondary market (fair value) | 219 | 533 |
SPE | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 481 | 577 |
Interests purchased in the secondary market (fair value) | 98 | 86 |
SPE | RML | ||
Variable Interest Entity | ||
SPE assets (UPB) | 14,775 | 15,555 |
Retained interests | 21 | 1 |
Interests purchased in the secondary market (fair value) | 58 | 16 |
Derivative assets (fair value) | 0 | 1 |
Derivative liabilities (fair value) | 0 | 0 |
SPE | RML | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 18 | 0 |
Interests purchased in the secondary market (fair value) | 7 | 0 |
SPE | RML | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 3 | 1 |
Interests purchased in the secondary market (fair value) | 51 | 16 |
SPE | CML | ||
Variable Interest Entity | ||
SPE assets (UPB) | 66,829 | 62,744 |
Retained interests | 611 | 391 |
Interests purchased in the secondary market (fair value) | 188 | 160 |
Derivative assets (fair value) | 0 | 0 |
Derivative liabilities (fair value) | 0 | 0 |
SPE | CML | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 492 | 293 |
Interests purchased in the secondary market (fair value) | 141 | 94 |
SPE | CML | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 119 | 98 |
Interests purchased in the secondary market (fair value) | 47 | 66 |
SPE | U.S. Agency CMO | ||
Variable Interest Entity | ||
SPE assets (UPB) | 14,793 | 11,612 |
Retained interests | 850 | 407 |
Interests purchased in the secondary market (fair value) | 71 | 439 |
Derivative assets (fair value) | 0 | 0 |
Derivative liabilities (fair value) | 0 | 0 |
SPE | U.S. Agency CMO | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 850 | 407 |
Interests purchased in the secondary market (fair value) | 71 | 439 |
SPE | U.S. Agency CMO | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 0 | 0 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
SPE | CLN and Other | ||
Variable Interest Entity | ||
SPE assets (UPB) | 17,101 | 17,060 |
Retained interests | 373 | 482 |
Interests purchased in the secondary market (fair value) | 0 | 4 |
Derivative assets (fair value) | 140 | 226 |
Derivative liabilities (fair value) | 136 | 85 |
SPE | CLN and Other | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 14 | 4 |
Interests purchased in the secondary market (fair value) | 0 | 0 |
SPE | CLN and Other | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 359 | 478 |
Interests purchased in the secondary market (fair value) | $ 0 | $ 4 |
Variable Interest Entities an_7
Variable Interest Entities and Securitization Activities (Transfers of Assets with Continuing Involvement 2) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity | ||
Derivative assets | $ 30,639 | $ 30,813 |
Derivative liabilities | 25,826 | 26,695 |
SPE | ||
Variable Interest Entity | ||
Retained interests | 1,405 | 988 |
Interests purchased in the secondary market (fair value) | 317 | 619 |
Derivative assets | 140 | 227 |
Derivative liabilities | 136 | 85 |
SPE | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 924 | 411 |
Interests purchased in the secondary market (fair value) | 219 | 533 |
SPE | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 481 | 577 |
Interests purchased in the secondary market (fair value) | 98 | 86 |
SPE | Level 2 | ||
Variable Interest Entity | ||
Retained interests | 1,007 | 429 |
Interests purchased in the secondary market (fair value) | 296 | 588 |
Derivative assets | 28 | 78 |
Derivative liabilities | 133 | 81 |
SPE | Level 2 | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 868 | 407 |
Interests purchased in the secondary market (fair value) | 208 | 531 |
SPE | Level 2 | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 139 | 22 |
Interests purchased in the secondary market (fair value) | 88 | 57 |
SPE | Level 3 | ||
Variable Interest Entity | ||
Retained interests | 398 | 559 |
Interests purchased in the secondary market (fair value) | 21 | 31 |
Derivative assets | 112 | 149 |
Derivative liabilities | 3 | 4 |
SPE | Level 3 | Investment Grade | ||
Variable Interest Entity | ||
Retained interests | 56 | 4 |
Interests purchased in the secondary market (fair value) | 11 | 2 |
SPE | Level 3 | Non-investment Grade | ||
Variable Interest Entity | ||
Retained interests | 342 | 555 |
Interests purchased in the secondary market (fair value) | $ 10 | $ 29 |
Variable Interest Entities an_8
Variable Interest Entities and Securitization Activities (Proceeds from New Securitization Transactions and Sales of Loans) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Transfer of Financial Assets Accounted for as Sales | ||||
Proceeds from new securitization transactions | $ 7,299 | $ 6,875 | $ 19,056 | $ 17,622 |
Proceeds from retained interests in securitization transactions | 584 | 648 | 2,222 | 1,607 |
CLO SPEs | Corporate Loans | ||||
Transfer of Financial Assets Accounted for as Sales | ||||
Proceeds from sale of loans | $ 17 | $ 56 | $ 253 | $ 148 |
Variable Interest Entities an_9
Variable Interest Entities and Securitization Activities (Assets Sold with Retained Exposure) (Details) - Bilateral OTC - Equity Derivatives - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Transfer of Financial Assets Accounted for as Sales | ||
Carrying value of assets derecognized at the time of sale and gross cash proceeds | $ 28,121 | $ 19,115 |
Fair value of assets sold | 28,820 | 19,138 |
Fair value of derivative assets recognized in the balance sheets | 826 | 176 |
Fair value of derivative liabilities recognized in the balance sheets | $ 127 | $ 153 |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Requirements | |
Description of regulatory requirements on capital adequacy | In addition to the minimum risk-based capital ratio requirements, by 2019 the Firm will be subject to the following buffers: ● A greater than 2.5% Common Equity Tier 1 capital conservation buffer; ● The Common Equity Tier 1 G-SIB capital surcharge, currently at 3%; and ● Up to a 2.5% Common Equity Tier 1 CCyB, currently set by U.S. banking agencies at zero. |
Description of possible effects of noncompliance | In 2018, each of the buffers is 75% of the 2019 requirement noted above (during 2017, the buffers were 50%). Failure to maintain the buffers would result in restrictions on the Firm’s ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. |
Regulatory Requirements (Capita
Regulatory Requirements (Capital Measures) (Details) - Standardized Approach Transitional Rules - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Required Ratio | ||
Common Equity Tier 1 capital | 8.60% | 7.30% |
Tier 1 capital | 10.10% | 8.80% |
Total capital | 12.10% | 10.80% |
Tier 1 leverage | 4.00% | 4.00% |
SLR | 5.00% | |
Amount | ||
Common Equity Tier 1 capital | $ 61,758 | $ 61,134 |
Tier 1 capital | 70,328 | 69,938 |
Total capital | 79,899 | 80,275 |
Total RWA | 370,714 | 369,578 |
Tier 1 leverage | 70,328 | 69,938 |
Adjusted average assets | 858,944 | $ 842,270 |
SLR | 70,328 | |
Supplementary leverage exposure | $ 1,101,263 | |
Ratio | ||
Common Equity Tier 1 capital | 16.70% | 16.50% |
Tier 1 capital | 19.00% | 18.90% |
Total capital | 21.60% | 21.70% |
Tier 1 leverage | 8.20% | 8.30% |
SLR | 6.40% |
Regulatory Requirements (U.S. B
Regulatory Requirements (U.S. Bank Subsidiaries' Regulatory Capital and Capital Ratios) (Details) - Standardized Approach Transitional Rules - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Required Ratio | ||
Common Equity Tier 1 capital | 8.60% | 7.30% |
Tier 1 capital | 10.10% | 8.80% |
Total capital | 12.10% | 10.80% |
Tier 1 leverage | 4.00% | 4.00% |
SLR | 5.00% | |
Amount | ||
Common Equity Tier 1 capital | $ 61,758 | $ 61,134 |
Tier 1 capital | 70,328 | 69,938 |
Total capital | 79,899 | 80,275 |
Tier 1 leverage | 70,328 | $ 69,938 |
SLR | $ 70,328 | |
Ratio | ||
Common Equity Tier 1 capital | 16.70% | 16.50% |
Tier 1 capital | 19.00% | 18.90% |
Total capital | 21.60% | 21.70% |
Tier 1 leverage | 8.20% | 8.30% |
SLR | 6.40% | |
MSBNA | ||
Required Ratio | ||
Common Equity Tier 1 capital | 6.50% | 6.50% |
Tier 1 capital | 8.00% | 8.00% |
Total capital | 10.00% | 10.00% |
Tier 1 leverage | 5.00% | 5.00% |
SLR | 6.00% | |
Amount | ||
Common Equity Tier 1 capital | $ 15,683 | $ 15,196 |
Tier 1 capital | 15,683 | 15,196 |
Total capital | 15,933 | 15,454 |
Tier 1 leverage | 15,683 | $ 15,196 |
SLR | $ 15,683 | |
Ratio | ||
Common Equity Tier 1 capital | 20.40% | 20.50% |
Tier 1 capital | 20.40% | 20.50% |
Total capital | 20.70% | 20.80% |
Tier 1 leverage | 10.90% | 11.80% |
SLR | 8.50% | |
MSPBNA | ||
Required Ratio | ||
Common Equity Tier 1 capital | 6.50% | 6.50% |
Tier 1 capital | 8.00% | 8.00% |
Total capital | 10.00% | 10.00% |
Tier 1 leverage | 5.00% | 5.00% |
SLR | 6.00% | |
Amount | ||
Common Equity Tier 1 capital | $ 6,841 | $ 6,215 |
Tier 1 capital | 6,841 | 6,215 |
Total capital | 6,886 | 6,258 |
Tier 1 leverage | 6,841 | $ 6,215 |
SLR | $ 6,841 | |
Ratio | ||
Common Equity Tier 1 capital | 25.00% | 24.40% |
Tier 1 capital | 25.00% | 24.40% |
Total capital | 25.10% | 24.60% |
Tier 1 leverage | 9.70% | 9.70% |
SLR | 9.40% |
Regulatory Requirements (Broker
Regulatory Requirements (Broker-Dealer Regulatory Capital Requirements) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
MS&Co. | ||
Regulatory Requirements | ||
Net capital | $ 12,627 | $ 10,142 |
Excess net capital | 10,253 | 8,018 |
MSSB LLC | ||
Regulatory Requirements | ||
Net capital | 3,030 | 2,567 |
Excess net capital | $ 2,864 | $ 2,400 |
Total Equity (Dividends and Sha
Total Equity (Dividends and Share Repurchases) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share Repurchase Program | ||||
Repurchases of common stock | $ 1,180 | $ 1,250 | $ 3,680 | $ 2,500 |
Capital Plans | ||||
Dividends declared per common share | $ 0.3 | $ 0.25 | $ 0.8 | $ 0.65 |
MUFG | ||||
Share Repurchase Program | ||||
Share repurchase program description | The sales plan is only intended to maintain MUFG’s ownership percentage below 24.9% in order to comply with MUFG’s passivity commitments to the Board of Governors of the Federal Reserve System and will have no impact on the strategic alliance between MUFG and the Firm, including the joint ventures in Japan. | |||
2018 Capital Plan | ||||
Capital Plans | ||||
Authorized repurchase amount of outstanding common stock | $ 4,700 | $ 4,700 | ||
Stock repurchase program start date | Jul. 1, 2018 | |||
Stock repurchase program expiration date | Jun. 30, 2019 | |||
Maximum quarterly common stock dividends per share | $ 0.3 |
Total Equity (Preferred Stock G
Total Equity (Preferred Stock General Disclosure) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Total Equity | ||||
Preferred stock dividends declared | $ 93 | $ 93 | $ 356 | $ 353 |
Preferred stock shares authorized | 30 | 30 |
Total Equity (Preferred Stock O
Total Equity (Preferred Stock Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Class of Stock | ||
Preferred stock carrying value | $ 8,520 | $ 8,520 |
Series A | ||
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 | ||
Class of Stock | ||
Preferred stock shares outstanding | 519,882 | |
Liquidation preference per share | $ 1,000 | |
Preferred stock carrying value | $ 408 | 408 |
Series C | 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 | ||
Class of Stock | ||
Preferred stock shares outstanding | 34,500 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 862 | 862 |
Series F | ||
Class of Stock | ||
Preferred stock shares outstanding | 34,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 850 | 850 |
Series G | ||
Class of Stock | ||
Preferred stock shares outstanding | 20,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 500 | 500 |
Series H | ||
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 | ||
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 | ||
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 | ||
Class of Stock | ||
Preferred stock shares outstanding | 40,000 | |
Liquidation preference per share | $ 25,000 | |
Preferred stock carrying value | $ 1,000 | $ 1,000 |
Total Equity (AOCI) (Details)
Total Equity (AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Cumulative adjustment for accounting changes | [1] | $ (131) | $ 10 | ||
Accumulated Other Comprehensive Income (Loss) | |||||
Beginning balance | $ (3,070) | $ (2,488) | (3,060) | (2,643) | |
Cumulative adjustment for accounting changes | [1] | (437) | |||
OCI during the period | (929) | (56) | (502) | 99 | |
Ending balance | (3,999) | (2,544) | (3,999) | (2,544) | |
Foreign Currency Translation Adjustments | |||||
Beginning balance | (864) | (856) | (767) | (986) | |
Cumulative adjustment for accounting changes | (8) | ||||
OCI during the period | (54) | 61 | (143) | 191 | |
Ending balance | (918) | (795) | (918) | (795) | |
AFS Securities | |||||
Beginning balance | (1,194) | (396) | (547) | (588) | |
Cumulative adjustment for accounting changes | (111) | ||||
OCI during the period | (171) | 26 | (707) | 218 | |
Ending balance | (1,365) | (370) | (1,365) | (370) | |
Pension, Postretirement and Other | |||||
Beginning balance | (704) | (470) | (591) | (474) | |
Cumulative adjustment for accounting changes | (124) | ||||
OCI during the period | 5 | 0 | 16 | 4 | |
Ending balance | (699) | (470) | (699) | (470) | |
DVA | |||||
Beginning balance | (308) | (766) | (1,155) | (595) | |
Cumulative adjustment for accounting changes | (194) | ||||
OCI during the period | (709) | (143) | 332 | (314) | |
Ending balance | $ (1,017) | $ (909) | $ (1,017) | $ (909) | |
[1] | The cumulative adjustment s relate to the adoption of certain accounting updates during the current and prior year periods. See Notes 2 and 14 for further information. |
Total Equity (Components of Per
Total Equity (Components of Period Changes in OCI ) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pre-tax Gain (Loss): Foreign Currency Translation Adjustments | ||||
OCI activity | $ (44) | $ 19 | $ (52) | $ 63 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | (44) | 19 | (52) | 63 |
Pre-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | (219) | 52 | (916) | 374 |
Reclassified to earnings | (5) | (11) | (8) | (27) |
Net OCI | (224) | 41 | (924) | 347 |
Pre-tax Gain (Loss): Pension, Postretirement and Other | ||||
OCI activity | 0 | 0 | 2 | 3 |
Reclassified to earnings | 7 | 1 | 19 | 2 |
Net OCI | 7 | 1 | 21 | 5 |
Pre-tax Gain (Loss): Change in Net DVA | ||||
OCI activity | (1,018) | (220) | 403 | (498) |
Reclassified to earnings | 36 | (9) | 54 | (1) |
Net OCI | (982) | (229) | 457 | (499) |
Income Tax Benefit (Provision): Foreign Currency Translation Adjustments | ||||
OCI activity | (35) | 42 | (102) | 160 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | (35) | 42 | (102) | 160 |
Income Tax Benefit (Provision): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | 51 | (19) | 215 | (139) |
Reclassified to earnings | 2 | 4 | 2 | 10 |
Net OCI | 53 | (15) | 217 | (129) |
Income Tax Benefit (Provision): Pension, Postretirement and Other | ||||
OCI activity | 0 | 0 | 0 | 0 |
Reclassified to earnings | (2) | (1) | (5) | (1) |
Net OCI | (2) | (1) | (5) | (1) |
Income Tax Benefit (Provision): Change in Net DVA | ||||
OCI activity | 248 | 77 | (97) | 175 |
Reclassified to earnings | (9) | 3 | (13) | 1 |
Net OCI | 239 | 80 | (110) | 176 |
After-tax Gain (Loss): Foreign Currency Translation Adjustments | ||||
OCI activity | (79) | 61 | (154) | 223 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | (79) | 61 | (154) | 223 |
After-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | (168) | 33 | (701) | 235 |
Reclassified to earnings | (3) | (7) | (6) | (17) |
Net OCI | (171) | 26 | (707) | 218 |
After-tax Gain (Loss): Pension, Postretirement and Other | ||||
OCI activity | 0 | 0 | 2 | 3 |
Reclassified to earnings | 5 | 0 | 14 | 1 |
Net OCI | 5 | 0 | 16 | 4 |
After-tax Gain (Loss): Change in Net DVA | ||||
OCI activity | (770) | (143) | 306 | (323) |
Reclassified to earnings | 27 | (6) | 41 | 0 |
Net OCI | (743) | (149) | 347 | (323) |
Non-controlling Interests | ||||
After-tax Gain (Loss): Foreign Currency Translation Adjustments | ||||
OCI activity | (25) | 0 | (11) | 32 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | (25) | 0 | (11) | 32 |
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 | (34) | (6) | 15 | (9) |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | (34) | (6) | 15 | (9) |
Net | ||||
After-tax Gain (Loss): Foreign Currency Translation Adjustments | ||||
OCI activity | (54) | 61 | (143) | 191 |
Reclassified to earnings | 0 | 0 | 0 | 0 |
Net OCI | (54) | 61 | (143) | 191 |
After-tax Gain (Loss): Change in Net Unrealized Gains (Losses) on AFS Securities | ||||
OCI activity | (168) | 33 | (701) | 235 |
Reclassified to earnings | (3) | (7) | (6) | (17) |
Net OCI | (171) | 26 | (707) | 218 |
After-tax Gain (Loss): Pension, Postretirement and Other | ||||
OCI activity | 0 | 0 | 2 | 3 |
Reclassified to earnings | 5 | 0 | 14 | 1 |
Net OCI | 5 | 0 | 16 | 4 |
After-tax Gain (Loss): Change in Net DVA | ||||
OCI activity | (736) | (137) | 291 | (314) |
Reclassified to earnings | 27 | (6) | 41 | 0 |
Net OCI | $ (709) | $ (143) | $ 332 | $ (314) |
Total Equity (Cumulative Adjust
Total Equity (Cumulative Adjustments to Retained Earnings) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Cumulative adjustment for accounting changes | [1] | $ (131) | $ 10 |
Retained Earnings | |||
Cumulative adjustment for accounting changes | [1] | 306 | (35) |
Retained Earnings | Revenue from Contracts with Customers | |||
Cumulative adjustment for accounting changes | (32) | ||
Retained Earnings | Derivatives and Hedging-Targeted Improvements to Accounting for Hedging Activities | |||
Cumulative adjustment for accounting changes | (99) | ||
Retained Earnings | Reclassification of Certain Tax Effects from AOCI | |||
Cumulative adjustment for accounting changes | 443 | ||
Retained Earnings | Improvements to Employee Share-Based Payment Accounting | |||
Cumulative adjustment for accounting changes | (30) | ||
Retained Earnings | Intra-Entity Transfers of Assets Other Than Inventory | |||
Cumulative adjustment for accounting changes | $ (5) | ||
Retained Earnings | Other | |||
Cumulative adjustment for accounting changes | $ (6) | ||
[1] | The cumulative adjustment s relate to the adoption of certain accounting updates during the current and prior year periods. See Notes 2 and 14 for further information. |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Basic EPS | ||||
Income from continuing operations | $ 2,155 | $ 1,785 | $ 7,330 | $ 5,574 |
Income (loss) from discontinued operations | (1) | 6 | (5) | (21) |
Net income | 2,154 | 1,791 | 7,325 | 5,553 |
Net income applicable to noncontrolling interests | 42 | 10 | 108 | 85 |
Net income applicable to Morgan Stanley | 2,112 | 1,781 | 7,217 | 5,468 |
Preferred stock dividends and other | 93 | 93 | 356 | 353 |
Earnings applicable to Morgan Stanley common shareholders | $ 2,019 | $ 1,688 | $ 6,861 | $ 5,115 |
Weighted average common shares outstanding | 1,697 | 1,776 | 1,719 | 1,789 |
Earnings per basic common share | ||||
Income from continuing operations | $ 1.19 | $ 0.95 | $ 3.99 | $ 2.87 |
Income (loss) from discontinued operations | 0 | 0 | 0 | (0.01) |
Earnings per basic common share | $ 1.19 | $ 0.95 | $ 3.99 | $ 2.86 |
Diluted EPS | ||||
Earnings applicable to Morgan Stanley common shareholders | $ 2,019 | $ 1,688 | $ 6,861 | $ 5,115 |
Weighted average common shares outstanding | 1,697 | 1,776 | 1,719 | 1,789 |
Effect of dilutive securities: | ||||
Stock options and RSUs | 30 | 42 | 30 | 41 |
Weighted average common shares outstanding and common stock equivalents | 1,727 | 1,818 | 1,749 | 1,830 |
Earnings per diluted common share | ||||
Income from continuing operations | $ 1.17 | $ 0.93 | $ 3.92 | $ 2.81 |
Income (loss) from discontinued operations | 0 | 0 | 0 | (0.02) |
Earnings per diluted common share | $ 1.17 | $ 0.93 | $ 3.92 | $ 2.79 |
Weighted average antidilutive RSUs and stock options (excluded from the computation of diluted EPS) | 1 | 0 | 1 | 0 |
Interest Income and Interest _3
Interest Income and Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest income | ||||
Investment securities | $ 440 | $ 313 | $ 1,281 | $ 943 |
Loans | 1,085 | 853 | 3,097 | 2,399 |
Securities purchased under agreements to resell and Securities borrowed | 575 | 76 | 1,156 | 86 |
Trading assets, net of Trading liabilities | 571 | 506 | 1,687 | 1,461 |
Customer receivables and Other | 956 | 592 | 2,560 | 1,522 |
Total Interest income | 3,627 | 2,340 | 9,781 | 6,411 |
Interest expense | ||||
Deposits | 377 | 63 | 809 | 88 |
Borrowings | 1,287 | 1,109 | 3,683 | 3,197 |
Securities sold under agreements to repurchase and Securities loaned | 478 | 325 | 1,326 | 912 |
Customer payables and Other | 549 | 60 | 1,146 | (91) |
Total interest expense | 2,691 | 1,557 | 6,964 | 4,106 |
Net interest | $ 936 | $ 783 | $ 2,817 | $ 2,305 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Expense (Income)) (Details) - Pension Plans - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Components of Net Periodic Benefit Expense (Income) | ||||
Service cost, benefits earned during the period | $ 4 | $ 4 | $ 12 | $ 12 |
Interest cost on projected benefit obligation | 34 | 37 | 103 | 112 |
Expected return on plan assets | (29) | (29) | (85) | (87) |
Net amortization of prior service credit | (1) | (4) | (1) | (12) |
Net amortization of actuarial loss | 8 | 4 | 20 | 12 |
Net periodic benefit expense (income) | $ 16 | $ 12 | $ 49 | $ 37 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |
Recurring-type discrete tax benefit associated with employee share-based payments | $ 164 |
Intermittent net discrete tax benefits | 92 |
Reduction in the total amount of gross unrecognized tax benefits | $ 430 |
Segment, Geographic and Reven_3
Segment, Geographic and Revenue Information (Selected Financial Information by Business Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information | ||||
Investment banking | $ 1,567 | $ 1,380 | $ 4,994 | $ 4,455 |
Trading | 2,752 | 2,704 | 9,815 | 8,870 |
Investments | 136 | 167 | 409 | 495 |
Commissions and fees | 932 | 937 | 3,144 | 2,997 |
Asset management | 3,251 | 3,026 | 9,632 | 8,695 |
Other | 298 | 200 | 748 | 628 |
Total non-interest revenues | 8,936 | 8,414 | 28,742 | 26,140 |
Interest income | 3,627 | 2,340 | 9,781 | 6,411 |
Interest expense | 2,691 | 1,557 | 6,964 | 4,106 |
Net interest | 936 | 783 | 2,817 | 2,305 |
Net revenues | 9,872 | 9,197 | 31,559 | 28,445 |
Income from continuing operations before income taxes | 2,851 | 2,482 | 9,380 | 7,932 |
Provision for income taxes | 696 | 697 | 2,050 | 2,358 |
Income from continuing operations | 2,155 | 1,785 | 7,330 | 5,574 |
Income (loss) from discontinued operations, net of income taxes | (1) | 6 | (5) | (21) |
Net income | 2,154 | 1,791 | 7,325 | 5,553 |
Net income (loss) applicable to noncontrolling interests | 42 | 10 | 108 | 85 |
Net income applicable to Morgan Stanley | 2,112 | 1,781 | 7,217 | 5,468 |
Segment Reporting Information, Additional Information | ||||
Revenues to be recorded in the remainder of 2018 | 25 | 25 | ||
Annual revenues to be recorded in the future over the next two years | 100 | 100 | ||
Revenue recognized in the current period, where some or all services were performed in prior periods | 804 | 2,192 | ||
Minimum | ||||
Segment Reporting Information, Additional Information | ||||
Annual revenues to be recorded in the future thereafter through 2035 | 10 | 10 | ||
Maximum | ||||
Segment Reporting Information, Additional Information | ||||
Annual revenues to be recorded in the future thereafter through 2035 | $ 50 | $ 50 | ||
Revenue from Contracts with Customers | ||||
Segment Reporting Information, Additional Information | ||||
Proportion of Investment banking revenue determined under the Revenue from Contracts with Customers accounting update | 85.00% | 85.00% | ||
I/E | ||||
Segment Reporting Information | ||||
Investment banking | $ (21) | (15) | $ (60) | (50) |
Trading | 17 | (5) | 44 | (7) |
Investments | 0 | 0 | 0 | 0 |
Commissions and fees | (66) | (26) | (212) | (80) |
Asset management | (38) | (23) | (114) | (76) |
Other | (1) | (6) | (5) | (14) |
Total non-interest revenues | (109) | (75) | (347) | (227) |
Interest income | (229) | (237) | (692) | (728) |
Interest expense | (229) | (238) | (695) | (732) |
Net interest | 0 | 1 | 3 | 4 |
Net revenues | (109) | (74) | (344) | (223) |
Income from continuing operations before income taxes | (1) | (4) | (1) | (2) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Income from continuing operations | (1) | (4) | (1) | (2) |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 |
Net income | (1) | (4) | (1) | (2) |
Net income (loss) applicable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income applicable to Morgan Stanley | (1) | (4) | (1) | (2) |
IS | ||||
Segment Reporting Information | ||||
Investment banking | 1,459 | 1,270 | 4,671 | 4,100 |
Trading | 2,573 | 2,504 | 9,344 | 8,241 |
Investments | 96 | 52 | 234 | 155 |
Commissions and fees | 589 | 561 | 2,007 | 1,811 |
Asset management | 112 | 88 | 324 | 268 |
Other | 244 | 143 | 548 | 442 |
Total non-interest revenues | 5,073 | 4,618 | 17,128 | 15,017 |
Interest income | 2,425 | 1,421 | 6,424 | 3,788 |
Interest expense | 2,569 | 1,663 | 6,809 | 4,515 |
Net interest | (144) | (242) | (385) | (727) |
Net revenues | 4,929 | 4,376 | 16,743 | 14,290 |
Income from continuing operations before income taxes | 1,556 | 1,236 | 5,480 | 4,409 |
Provision for income taxes | 397 | 260 | 1,169 | 1,132 |
Income from continuing operations | 1,159 | 976 | 4,311 | 3,277 |
Income (loss) from discontinued operations, net of income taxes | (3) | 6 | (7) | (21) |
Net income | 1,156 | 982 | 4,304 | 3,256 |
Net income (loss) applicable to noncontrolling interests | 36 | 9 | 100 | 77 |
Net income applicable to Morgan Stanley | 1,120 | 973 | 4,204 | 3,179 |
IS | Advisory | ||||
Segment Reporting Information | ||||
Investment banking | 510 | 1,702 | ||
IS | Underwriting | ||||
Segment Reporting Information | ||||
Investment banking | 949 | 2,969 | ||
WM | ||||
Segment Reporting Information | ||||
Investment banking | 129 | 125 | 383 | 405 |
Trading | 160 | 212 | 404 | 657 |
Investments | 0 | 1 | 3 | 3 |
Commissions and fees | 409 | 402 | 1,349 | 1,266 |
Asset management | 2,573 | 2,393 | 7,582 | 6,879 |
Other | 58 | 62 | 195 | 191 |
Total non-interest revenues | 3,329 | 3,195 | 9,916 | 9,401 |
Interest income | 1,412 | 1,155 | 4,012 | 3,348 |
Interest expense | 342 | 130 | 830 | 320 |
Net interest | 1,070 | 1,025 | 3,182 | 3,028 |
Net revenues | 4,399 | 4,220 | 13,098 | 12,429 |
Income from continuing operations before income taxes | 1,194 | 1,119 | 3,511 | 3,149 |
Provision for income taxes | 281 | 421 | 808 | 1,139 |
Income from continuing operations | 913 | 698 | 2,703 | 2,010 |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 |
Net income | 913 | 698 | 2,703 | 2,010 |
Net income (loss) applicable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income applicable to Morgan Stanley | 913 | 698 | 2,703 | 2,010 |
IM | ||||
Segment Reporting Information | ||||
Investment banking | 0 | 0 | 0 | 0 |
Trading | 2 | (7) | 23 | (21) |
Investments | 40 | 114 | 172 | 337 |
Commissions and fees | 0 | 0 | 0 | 0 |
Asset management | 604 | 568 | 1,840 | 1,624 |
Other | (3) | 1 | 10 | 9 |
Total non-interest revenues | 643 | 676 | 2,045 | 1,949 |
Interest income | 19 | 1 | 37 | 3 |
Interest expense | 9 | 2 | 20 | 3 |
Net interest | 10 | (1) | 17 | 0 |
Net revenues | 653 | 675 | 2,062 | 1,949 |
Income from continuing operations before income taxes | 102 | 131 | 390 | 376 |
Provision for income taxes | 18 | 16 | 73 | 87 |
Income from continuing operations | 84 | 115 | 317 | 289 |
Income (loss) from discontinued operations, net of income taxes | 2 | 0 | 2 | 0 |
Net income | 86 | 115 | 319 | 289 |
Net income (loss) applicable to noncontrolling interests | 6 | 1 | 8 | 8 |
Net income applicable to Morgan Stanley | $ 80 | $ 114 | $ 311 | $ 281 |
Segment, Geographic and Reven_4
Segment, Geographic and Revenue Information (Assets by Business Segment) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information | ||
Assets | $ 865,517 | $ 851,733 |
Institutional Securities | ||
Segment Reporting Information | ||
Assets | 671,508 | 664,974 |
Wealth Management | ||
Segment Reporting Information | ||
Assets | 188,166 | 182,009 |
Investment Management | ||
Segment Reporting Information | ||
Assets | $ 5,843 | $ 4,750 |
Segment, Geographic and Reven_5
Segment, Geographic and Revenue Information (Additional Information - Investment Management) (Details) - Investment Management - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information | |||||
Net cumulative unrealized performance-based fees at risk of reversing | $ 406 | $ 406 | $ 442 | ||
Fee waivers | $ 11 | $ 20 | $ 45 | $ 66 |
Segment, Geographic and Reven_6
Segment, Geographic and Revenue Information (Net Revenues by Region) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information | ||||
Net revenues | $ 9,872 | $ 9,197 | $ 31,559 | $ 28,445 |
Americas | ||||
Segment Reporting Information | ||||
Net revenues | 7,357 | 6,833 | 22,989 | 20,667 |
EMEA | ||||
Segment Reporting Information | ||||
Net revenues | 1,355 | 1,325 | 4,892 | 4,420 |
Asia | ||||
Segment Reporting Information | ||||
Net revenues | $ 1,160 | $ 1,039 | $ 3,678 | $ 3,358 |
Segment, Geographic and Reven_7
Segment, Geographic and Revenue Information (Trading Revenues by Product Type) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue | ||||
Trading revenues | $ 2,752 | $ 2,704 | $ 9,815 | $ 8,870 |
Interest Rate Contracts | ||||
Disaggregation of Revenue | ||||
Trading revenues | 744 | 648 | 2,396 | 1,693 |
Foreign Exchange Contracts | ||||
Disaggregation of Revenue | ||||
Trading revenues | 223 | 181 | 622 | 613 |
Equity Security and Index Contracts | ||||
Disaggregation of Revenue | ||||
Trading revenues | 1,432 | 1,416 | 5,094 | 4,875 |
Commodity and Other Contracts | ||||
Disaggregation of Revenue | ||||
Trading revenues | 254 | 223 | 1,047 | 522 |
Credit Contracts | ||||
Disaggregation of Revenue | ||||
Trading revenues | $ 99 | $ 236 | $ 656 | $ 1,167 |
Segment, Geographic and Reven_8
Segment, Geographic and Revenue Information (Change in Revenue) (Details) - Revenue from Contracts with Customers - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Change in Revenue as a Result of Application of the New Revenue Recognition Standard | ||
Gross presentation impact - Revenue | $ 93 | $ 280 |
Gross presentation impact - Expense | 93 | 280 |
Timing impact - Revenue | (12) | (8) |
Net change in revenue and expense | (12) | (8) |
Brokerage, Clearing and Exchange Fees | ||
Change in Revenue as a Result of Application of the New Revenue Recognition Standard | ||
Gross presentation impact - Expense | 8 | 22 |
Marketing and Business Development Expense | ||
Change in Revenue as a Result of Application of the New Revenue Recognition Standard | ||
Gross presentation impact - Expense | 8 | 20 |
Professional Services | ||
Change in Revenue as a Result of Application of the New Revenue Recognition Standard | ||
Gross presentation impact - Expense | 39 | 93 |
Other | ||
Change in Revenue as a Result of Application of the New Revenue Recognition Standard | ||
Gross presentation impact - Expense | 38 | 145 |
Advisory | ||
Change in Revenue as a Result of Application of the New Revenue Recognition Standard | ||
Gross presentation impact - Revenue | 12 | 56 |
Timing impact - Revenue | (2) | 13 |
Underwriting | ||
Change in Revenue as a Result of Application of the New Revenue Recognition Standard | ||
Gross presentation impact - Revenue | 59 | 161 |
Asset Management | ||
Change in Revenue as a Result of Application of the New Revenue Recognition Standard | ||
Gross presentation impact - Revenue | 8 | 22 |
Timing impact - Revenue | (15) | (31) |
Other | ||
Change in Revenue as a Result of Application of the New Revenue Recognition Standard | ||
Gross presentation impact - Revenue | 14 | 41 |
Timing impact - Revenue | $ 5 | $ 10 |
Segment, Geographic and Reven_9
Segment, Geographic and Revenue Information (Receivables from Contracts with Customers) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 |
Segments, Geographical Areas [Abstract] | ||
Customer and other receivables | $ 2,418 | $ 2,805 |