Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 22, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-07511 | |
Entity Registrant Name | STATE STREET CORP | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-2456637 | |
Entity Address, Address Line One | One Lincoln Street | |
Entity Address, City or Town | Boston, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02111 | |
City Area Code | (617) | |
Local Phone Number | 786-3000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 352,383,250 | |
Amendment Flag | false | |
Entity Central Index Key | 0000093751 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, $1 par value per share | |
Trading Symbol | STT | |
Security Exchange Name | NYSE | |
Series D Preferred Stock, Depository Share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, without par value per share | |
Trading Symbol | STT.PRD | |
Security Exchange Name | NYSE | |
Series G Preferred Stock, Depository Share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series G, without par value per share | |
Trading Symbol | STT.PRG | |
Security Exchange Name | NYSE |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fee revenue: | ||||
Servicing fees | $ 1,272 | $ 1,252 | $ 2,559 | $ 2,503 |
Management fees | 425 | 441 | 874 | 861 |
Foreign exchange trading services | 344 | 273 | 803 | 553 |
Securities finance | 92 | 126 | 184 | 244 |
Software and processing fees | 245 | 168 | 357 | 359 |
Total fee revenue | 2,378 | 2,260 | 4,777 | 4,520 |
Net interest income: | ||||
Interest income | 674 | 1,007 | 1,542 | 2,034 |
Interest expense | 115 | 394 | 319 | 748 |
Net interest income | 559 | 613 | 1,223 | 1,286 |
Other income: | ||||
Gains from sales of available-for-sale securities, net | 0 | 0 | 2 | 0 |
Other income (loss) | 0 | 0 | 0 | (1) |
Total other income | 0 | 0 | 2 | (1) |
Total revenue | 2,937 | 2,873 | 6,002 | 5,805 |
Provision for credit losses | 52 | 1 | 88 | 5 |
Expenses: | ||||
Compensation and employee benefits | 1,051 | 1,084 | 2,259 | 2,313 |
Information systems and communications | 376 | 365 | 761 | 727 |
Transaction processing services | 233 | 245 | 487 | 487 |
Occupancy | 109 | 115 | 218 | 231 |
Acquisition and restructuring costs | 12 | 12 | 23 | 21 |
Amortization of other intangible assets | 58 | 59 | 116 | 119 |
Other | 243 | 274 | 473 | 549 |
Total expenses | 2,082 | 2,154 | 4,337 | 4,447 |
Income before income tax expense | 803 | 718 | 1,577 | 1,353 |
Income tax expense | 109 | 131 | 249 | 258 |
Net income | 694 | 587 | 1,328 | 1,095 |
Net income available to common shareholders | $ 662 | $ 537 | $ 1,242 | $ 989 |
Earnings per common share: | ||||
Basic (in USD per share) | $ 1.88 | $ 1.44 | $ 3.52 | $ 2.63 |
Diluted (in USD per share) | $ 1.86 | $ 1.42 | $ 3.48 | $ 2.61 |
Average common shares outstanding (in thousands): | ||||
Basic (in shares) | 352,157 | 373,773 | 352,952 | 375,832 |
Diluted (in shares) | 356,413 | 377,577 | 357,028 | 379,465 |
Cash dividends declared (in USD per share) | $ 0.52 | $ 0.47 | $ 1.04 | $ 0.94 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 694 | $ 587 | $ 1,328 | $ 1,095 |
Other comprehensive income (loss), net of related taxes: | ||||
Foreign currency translation, net of related taxes | 152 | 42 | (148) | 16 |
Net unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment and net of related taxes | 327 | 257 | 461 | 529 |
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes | 3 | 5 | (4) | 3 |
Non-credit impairment on held-to-maturity securities previously identified under ASC 320, net of related taxes | 0 | 1 | 0 | 1 |
Net unrealized gains (losses) on cash flow hedges, net of related taxes | 6 | 1 | 123 | 25 |
Net unrealized gains (losses) on retirement plans, net of related taxes | 2 | 0 | 14 | (8) |
Other comprehensive income | 490 | 306 | 446 | 566 |
Total comprehensive income | $ 1,184 | $ 893 | $ 1,774 | $ 1,661 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation, Taxes | $ 4 | $ 10 | $ (6) | $ 7 |
Change in net unrealized gains (losses) on available-for-sale securities, Taxes | 132 | 102 | 167 | 210 |
Change in net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, Taxes | 1 | 2 | (2) | 1 |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, Taxes | 0 | 0 | 0 | 1 |
Change in net unrealized gains (losses) on cash flow hedges, Taxes | 3 | 0 | 47 | 9 |
Change in unrealized gains (losses) on retirement plans, Taxes | $ 1 | $ 0 | $ 5 | $ (4) |
Consolidated Statement of Condi
Consolidated Statement of Condition - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 3,685 | $ 3,302 |
Interest-bearing deposits with banks | 90,199 | 68,965 |
Securities purchased under resale agreements | 4,026 | 1,487 |
Trading account assets | 883 | 914 |
Investment securities available-for-sale | 56,231 | 53,815 |
Investment securities to held-to-maturity purchased under money market liquidity facility (less allowance for credit losses of $4) (fair value of $11,294) | 11,257 | 0 |
Investment securities held-to-maturity (fair value of $43,037 and $42,157) | 41,848 | 41,782 |
Loans (less allowance for credit losses on loans of $141 and $74) | 26,719 | 26,235 |
Premises and equipment (net of accumulated depreciation of $4,591 and $4,367) | 2,212 | 2,282 |
Accrued interest and fees receivable | 3,235 | 3,231 |
Goodwill | 7,538 | 7,556 |
Other intangible assets | 1,914 | 2,030 |
Other assets | 30,495 | 34,011 |
Total assets | 280,242 | 245,610 |
Deposits: | ||
Non-interest-bearing | 42,132 | 34,031 |
Interest-bearing - U.S. | 87,197 | 77,504 |
Interest-bearing - non-U.S. | 71,133 | 70,337 |
Total deposits | 200,462 | 181,872 |
Securities sold under repurchase agreements | 3,513 | 1,102 |
Short-term borrowings under money market liquidity facility | 11,261 | 0 |
Other short-term borrowings | 912 | 839 |
Accrued expenses and other liabilities | 23,634 | 24,857 |
Long-term debt | 15,587 | 12,509 |
Total liabilities | 255,369 | 221,179 |
Commitments, guarantees and contingencies (Notes 9 and 10) | ||
Shareholders’ equity: | ||
Common stock, $1 par, 750,000,000 shares authorized | 504 | 504 |
Surplus | 10,179 | 10,132 |
Retained earnings | 22,794 | 21,918 |
Accumulated other comprehensive income (loss) | (430) | (876) |
Total shareholders’ equity | 24,873 | 24,431 |
Total liabilities and shareholders' equity | 280,242 | 245,610 |
Series C Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized | 0 | 491 |
Series D Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized | 742 | 742 |
Series F Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized | 742 | 742 |
Series G Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized | 493 | 493 |
Series H Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized | $ 494 | $ 494 |
Consolidated Statement of Con_2
Consolidated Statement of Condition (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Allowance for credit losses | $ 4 | |
Investment securities held-to-maturity under money market liquidity facility, fair value | 26,809 | |
Investment securities held-to-maturity, fair value | 43,037 | $ 42,157 |
Loans, allowance for losses | 141 | 74 |
Premises and equipment, accumulated depreciation | $ 4,591 | $ 4,367 |
Stockholders' Equity: | ||
Preferred stock, no par value (in USD per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 3,500,000 | 3,500,000 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 503,879,642 | 503,879,642 |
Common stock, shares outstanding (in shares) | 352,383,250 | 357,389,416 |
Treasury stock, shares (in shares) | 151,496,392 | 146,490,226 |
Series C Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 5,000 | 5,000 |
Preferred stock, shares outstanding (in shares) | 5,000 | 5,000 |
Series D Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 7,500 | 7,500 |
Preferred stock, shares outstanding (in shares) | 7,500 | 7,500 |
Series F Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 7,500 | 7,500 |
Preferred stock, shares outstanding (in shares) | 7,500 | 7,500 |
Series G Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 5,000 | 5,000 |
Preferred stock, shares outstanding (in shares) | 5,000 | 5,000 |
Series H Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 5,000 | 5,000 |
Preferred stock, shares outstanding (in shares) | 5,000 | 5,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes In Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Preferred Stock | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Cumulative Effect, Period Of Adoption, Adjustment | |||
Beginning balance at Dec. 31, 2018 | $ 24,737 | $ 3,690 | $ 504 | $ 10,061 | $ 20,553 | $ (1,356) | $ (8,715) | ||||
Beginning balance (shares) at Dec. 31, 2018 | 503,880 | 123,933 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Reclassification of certain tax effects | [1] | 84 | (84) | ||||||||
Net income | 508 | 508 | |||||||||
Other comprehensive income (loss) | 260 | 260 | |||||||||
Cash dividends declared: | |||||||||||
Common stock dividends | (177) | (177) | |||||||||
Preferred stock cash dividend | (55) | (55) | |||||||||
Common stock acquired (shares) | 4,230 | ||||||||||
Common stock acquired | (300) | $ (300) | |||||||||
Common stock awards exercised | 71 | 26 | $ 45 | ||||||||
Common stock awards exercised (shares) | (1,002) | ||||||||||
Other | (6) | (5) | (2) | $ 1 | |||||||
Other (shares) | (2) | ||||||||||
Ending balance at Mar. 31, 2019 | 25,038 | 3,690 | $ 504 | 10,082 | 20,911 | (1,180) | $ (8,969) | ||||
Ending balance (shares) at Mar. 31, 2019 | 503,880 | 127,159 | |||||||||
Beginning balance at Dec. 31, 2018 | 24,737 | 3,690 | $ 504 | 10,061 | 20,553 | (1,356) | $ (8,715) | ||||
Beginning balance (shares) at Dec. 31, 2018 | 503,880 | 123,933 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Reclassification of certain tax effects | (84) | ||||||||||
Net income | 1,095 | ||||||||||
Other comprehensive income (loss) | 566 | ||||||||||
Cash dividends declared: | |||||||||||
Common stock dividends | (352) | ||||||||||
Preferred stock cash dividend | (105) | ||||||||||
Ending balance at Jun. 30, 2019 | 25,454 | 3,690 | $ 504 | 10,109 | 21,274 | (874) | $ (9,249) | ||||
Ending balance (shares) at Jun. 30, 2019 | 503,880 | 131,307 | |||||||||
Beginning balance at Mar. 31, 2019 | 25,038 | 3,690 | $ 504 | 10,082 | 20,911 | (1,180) | $ (8,969) | ||||
Beginning balance (shares) at Mar. 31, 2019 | 503,880 | 127,159 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 587 | 587 | |||||||||
Other comprehensive income (loss) | 306 | 306 | |||||||||
Cash dividends declared: | |||||||||||
Common stock dividends | (175) | (175) | |||||||||
Preferred stock cash dividend | (50) | (50) | |||||||||
Common stock acquired (shares) | 4,598 | ||||||||||
Common stock acquired | (300) | $ (300) | |||||||||
Common stock awards exercised | 47 | 27 | $ 20 | ||||||||
Common stock awards exercised (shares) | (452) | ||||||||||
Other | 1 | 1 | $ 0 | ||||||||
Other (shares) | 2 | ||||||||||
Ending balance at Jun. 30, 2019 | 25,454 | 3,690 | $ 504 | 10,109 | 21,274 | (874) | $ (9,249) | ||||
Ending balance (shares) at Jun. 30, 2019 | 503,880 | 131,307 | |||||||||
Cash dividends declared: | |||||||||||
Decrease in retained earnings | 24,431 | ||||||||||
Beginning balance at Dec. 31, 2019 | 24,431 | 2,962 | $ 504 | 10,132 | 21,918 | (876) | $ (10,209) | ||||
Beginning balance (shares) at Dec. 31, 2019 | 503,880 | 146,490 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 634 | 634 | |||||||||
Other comprehensive income (loss) | (44) | (44) | |||||||||
Preferred stock redeemed | (500) | (491) | (9) | ||||||||
Cash dividends declared: | |||||||||||
Common stock dividends | (183) | (183) | |||||||||
Preferred stock cash dividend | (44) | (44) | |||||||||
Common stock acquired (shares) | 6,464 | ||||||||||
Common stock acquired | (500) | $ (500) | |||||||||
Common stock awards exercised | 68 | 23 | $ 45 | ||||||||
Common stock awards exercised (shares) | (1,017) | ||||||||||
Other | [2] | (1) | (1) | ||||||||
Other (shares) | [2] | (1) | |||||||||
Ending balance at Mar. 31, 2020 | 23,861 | 2,471 | $ 504 | 10,155 | 22,315 | (920) | $ (10,664) | ||||
Ending balance (shares) at Mar. 31, 2020 | 503,880 | 151,936 | |||||||||
Beginning balance at Dec. 31, 2019 | 24,431 | 2,962 | $ 504 | 10,132 | 21,918 | (876) | $ (10,209) | ||||
Beginning balance (shares) at Dec. 31, 2019 | 503,880 | 146,490 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 1,328 | ||||||||||
Other comprehensive income (loss) | 446 | ||||||||||
Cash dividends declared: | |||||||||||
Common stock dividends | (366) | ||||||||||
Preferred stock cash dividend | (76) | ||||||||||
Ending balance at Jun. 30, 2020 | 24,873 | 2,471 | $ 504 | 10,179 | 22,794 | (430) | $ (10,645) | ||||
Ending balance (shares) at Jun. 30, 2020 | 503,880 | 151,496 | |||||||||
Cash dividends declared: | |||||||||||
Decrease in retained earnings | $ (3) | ||||||||||
Beginning balance at Mar. 31, 2020 | 23,861 | 2,471 | $ 504 | 10,155 | 22,315 | (920) | $ (10,664) | ||||
Beginning balance (shares) at Mar. 31, 2020 | 503,880 | 151,936 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 694 | 694 | |||||||||
Other comprehensive income (loss) | 490 | 490 | |||||||||
Cash dividends declared: | |||||||||||
Common stock dividends | (183) | (183) | |||||||||
Preferred stock cash dividend | (32) | (32) | |||||||||
Common stock awards exercised | 44 | 24 | $ 20 | ||||||||
Common stock awards exercised (shares) | (443) | ||||||||||
Other | (1) | [2] | 0 | [2] | $ (1) | ||||||
Other (shares) | [2] | 3 | |||||||||
Ending balance at Jun. 30, 2020 | 24,873 | $ 2,471 | $ 504 | $ 10,179 | $ 22,794 | $ (430) | $ (10,645) | ||||
Ending balance (shares) at Jun. 30, 2020 | 503,880 | 151,496 | |||||||||
Cash dividends declared: | |||||||||||
Decrease in retained earnings | $ 24,873 | ||||||||||
[1] | Represents the reclassification from accumulated other comprehensive income into retained earnings as a result of our adoption of ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of 2019. | ||||||||||
[2] | Includes the impact of transitioning to ASC 326 consisting of a decrease in retained earnings of $3 million in the first quarter of 2020. |
Consolidated Statement of Cha_2
Consolidated Statement of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividends declared (in USD per share) | $ 0.52 | $ 0.52 | $ 0.47 | $ 0.47 | $ 1.04 | $ 0.94 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Operating Activities: | |||||||
Net income | $ 694 | $ 634 | $ 587 | $ 508 | $ 1,328 | $ 1,095 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Deferred income tax expense (benefit) | 3 | 56 | |||||
Amortization of other intangible assets | 58 | 59 | 116 | 119 | $ 236 | ||
Other non-cash adjustments for depreciation, amortization and accretion, net | 568 | 515 | |||||
Losses (gains) related to investment securities, net | (2) | (1) | |||||
Change in trading account assets, net | 31 | (34) | |||||
Change in accrued interest and fees receivable, net | (3) | 1 | |||||
Change in collateral deposits, net | 166 | (3,711) | |||||
Change in unrealized losses (gains) on foreign exchange derivatives, net | (789) | 1,601 | |||||
Change in other assets, net | (844) | (1,317) | |||||
Change in accrued expenses and other liabilities, net | 4,494 | 1,107 | |||||
Other, net | 307 | 242 | |||||
Net cash provided by (used in) operating activities | 5,375 | (327) | |||||
Investing Activities: | |||||||
Net decrease (increase) in interest-bearing deposits with banks | (21,234) | 10,506 | |||||
Net decrease (increase) in securities purchased under resale agreements | (2,539) | 2,947 | |||||
Proceeds from sales of available-for-sale securities | 2,086 | 3,947 | |||||
Proceeds from maturities of available-for-sale securities | 10,147 | 9,166 | |||||
Purchases of available-for-sale securities | (16,761) | (20,216) | |||||
Purchases of held-to-maturity securities under the MMLF program | (29,242) | 0 | |||||
Proceeds from maturities of held-to-maturity securities under the MMLF program | 18,014 | 0 | |||||
Proceeds from maturities of held-to-maturity securities | 6,041 | 4,917 | |||||
Purchases of held-to-maturity securities | (3,997) | (2,797) | |||||
Net (increase) in loans | (551) | ||||||
Net (increase) in loans | 369 | ||||||
Business acquisitions, net of cash acquired | 0 | (54) | |||||
Purchases of equity investments and other long-term assets | (810) | (184) | |||||
Purchases of premises and equipment, net | (271) | (342) | |||||
Other, net | 822 | 294 | |||||
Net cash (used in) provided by investing activities | (38,295) | 8,553 | |||||
Financing Activities: | |||||||
Net (decrease) increase in time deposits | (33,097) | (5,228) | |||||
Net increase (decrease) in all other deposits | 51,686 | (4,538) | |||||
Net increase in short-term borrowings under money market liquidity facility | 11,261 | 0 | |||||
Net (decrease) increase in other short-term borrowings | 2,484 | 2,594 | |||||
Proceeds from issuance of long-term debt, net of issuance costs | 2,497 | 0 | |||||
Payments for long-term debt and obligations under finance leases | (16) | (39) | |||||
Payments for redemption of preferred stock | (500) | 0 | |||||
Repurchases of common stock | (515) | (600) | |||||
Repurchases of common stock for employee tax withholding | (52) | (56) | |||||
Payments for cash dividends | (445) | (461) | |||||
Net cash (used in) financing activities | 33,303 | (8,328) | |||||
Net increase | 383 | (102) | |||||
Cash and due from banks at beginning of period | $ 3,302 | $ 3,212 | 3,302 | 3,212 | 3,212 | ||
Cash and due from banks at end of period | $ 3,685 | $ 3,110 | $ 3,685 | $ 3,110 | $ 3,302 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the Parent Company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary is State Street Bank. The accompanying consolidated financial statements should be read in conjunction with the financial and risk factor information included in our 2019 Form 10-K, which we previously filed with the SEC. The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. These accounting estimates reflect the best judgment of management, but actual results could differ. Our consolidated statement of condition as of December 31, 2019 included in the accompanying consolidated financial statements was derived from the audited financial statements as of that date, but does not include all notes required by U.S. GAAP for a complete set of consolidated financial statements. Recent Accounting Developments Relevant standards that were adopted in the first six months of 2020: In January 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as CECL methodology . This standard requires immediate recognition of expected credit losses for certain financial assets and off-balance sheet commitments, including trade and other receivables, loans and commitments, held-to-maturity debt securities, and other financial assets held at amortized cost at the reporting date, to be measured based on historical experience, current conditions, and reasonable and supportable forecasts. Credit losses on available-for-sale securities are recorded as an allowance against the amortized cost basis of the security, limited to the amount by which the security’s amortized cost basis exceeds the fair value, and reversal of impairment losses are allowed when the credit of the issuer improves. ASC 326 was adopted using a modified retrospective method of transition for all financial assets measured at amortized cost and off balance sheet commitments, which requires the impact of applying the standard on prior periods to be reflected in opening retained earnings upon adoption. Results for reporting periods beginning after January 1, 2020 are presented under the CECL methodology in ASC 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP. Additional information about the reporting for prior periods can be found in our 2019 Form 10-K filed with the SEC on February 20, 2020. The impact of transitioning to ASC 326 on the consolidated financial statements was an increase in the allowance for credit losses and a decrease in retained earnings of $3 million primarily arising from: • An increase of $1 million in the allowance for credit losses related to loans and other financial assets held at amortized cost. • An increase of $2 million in the allowance for credit losses related to off-balance sheet commitments In January 2020, we adopted the remaining provisions of ASU 2018-13 - Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value, specifically the provisions of the standard that add disclosures. We previously adopted the provisions of the standard that eliminated or amended disclosures as of December 31, 2018. There are no material impacts to the disclosures as a result of the adoption. In January 2020, we adopted ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. There are no material impacts to our financial statements as a result of the adoption. In January 2020, we adopted ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement. There are no material impacts to our financial statements as a result of the adoption. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting is effective as of March 12, 2020. The guidance provides temporary optional expedients and exceptions to the existing guidance in U.S. GAAP on contract modifications and hedge accounting in relation to the transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance also allows a one-time election to sell and/or reclassify to AFS or trading HTM debt securities that reference an interest rate affected by reference rate reform. There were no material impacts to our financial statements as a result of the adoption; we are evaluating the one-time election to sell/transfer HTM securities impacted by reference rate reform. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair Value Measurements We carry trading account assets and liabilities, AFS debt securities, certain equity securities and various types of derivative financial instruments, at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders' equity in our consolidated statement of condition. We measure fair value for the above-described financial assets and liabilities in conformity with U.S. GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of U.S. GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. For information about our valuation techniques for financial assets and financial liabilities measured at fair value and the fair value hierarchy, refer to pages 128 to 134 in Note 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated: Fair Value Measurements on a Recurring Basis As of June 30, 2020 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 35 $ — $ — $ 35 Non-U.S. government securities 94 225 — 319 Other 17 512 — 529 Total trading account assets 146 737 — 883 Available-for-sale investment securities: U.S. Treasury and federal agencies: Direct obligations 5,804 — — 5,804 Mortgage-backed securities — 16,676 — 16,676 Total U.S. Treasury and federal agencies 5,804 16,676 — 22,480 Asset-backed securities: Student loans — 404 — 404 Credit cards — 90 — 90 Collateralized loan obligations — 50 1,869 1,919 Total asset-backed securities — 544 1,869 2,413 Non-U.S. debt securities: Mortgage-backed securities — 1,706 — 1,706 Asset-backed securities — 1,015 876 1,891 Government securities — 13,119 — 13,119 Other (2) — 10,017 45 10,062 Total non-U.S. debt securities — 25,857 921 26,778 State and political subdivisions — 1,723 — 1,723 Collateralized mortgage obligations — 90 — 90 Other U.S. debt securities — 2,747 — 2,747 Total available-for-sale investment securities 5,804 47,637 2,790 56,231 Other assets: Derivative instruments: Foreign exchange contracts 4 15,984 2 $ (11,254 ) 4,736 Interest rate contracts — 51 — (16 ) 35 Total derivative instruments 4 16,035 2 (11,270 ) 4,771 Other — 280 — — 280 Total assets carried at fair value $ 5,954 $ 64,689 $ 2,792 $ (11,270 ) $ 62,165 Liabilities: Accrued expenses and other liabilities: Trading account liabilities: Other $ 4 $ — $ — $ — $ 4 Derivative instruments: Foreign exchange contracts $ 5 $ 15,679 $ 1 $ (10,831 ) $ 4,854 Interest rate contracts 4 52 — (16 ) 40 Other derivative contracts — 185 — — 185 Total derivative instruments 9 15,916 1 (10,847 ) 5,079 Total liabilities carried at fair value $ 13 $ 15,916 $ 1 $ (10,847 ) $ 5,083 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $1.97 billion and $1.55 billion , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of June 30, 2020 , the fair value of other non-U.S. debt securities included $6.65 billion of supranational and non-U.S. agency bonds , $1.77 billion of corporate bonds and $0.48 billion of covered bonds. Fair Value Measurements on a Recurring Basis As of December 31, 2019 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 34 $ — $ — $ 34 Non-U.S. government securities 146 173 — 319 Other 21 540 — 561 Total trading account assets 201 713 — 914 Available-for-sale investment securities: U.S. Treasury and federal agencies: Direct obligations 3,487 — — 3,487 Mortgage-backed securities — 17,838 — 17,838 Total U.S. Treasury and federal agencies 3,487 17,838 — 21,325 Asset-backed securities: Student loans — 531 — 531 Credit cards — 89 — 89 Collateralized loan obligations — — 1,820 1,820 Total asset-backed securities — 620 1,820 2,440 Non-U.S. debt securities: Mortgage-backed securities — 1,980 — 1,980 Asset-backed securities — 1,292 887 2,179 Government securities — 12,373 — 12,373 Other (2) — 8,613 45 8,658 Total non-U.S. debt securities — 24,258 932 25,190 State and political subdivisions — 1,783 — 1,783 Collateralized mortgage obligations — 104 — 104 Other U.S. debt securities — 2,973 — 2,973 Total available-for-sale investment securities 3,487 47,576 2,752 53,815 Other assets: Derivative instruments: Foreign exchange contracts — 15,136 4 $ (10,391 ) 4,749 Interest rate contracts — 8 — (4 ) 4 Total derivative instruments — 15,144 4 (10,395 ) 4,753 Other — 504 — — 504 Total assets carried at fair value $ 3,688 $ 63,937 $ 2,756 $ (10,395 ) $ 59,986 Liabilities: Accrued expenses and other liabilities: Trading account liabilities: Other $ 5 $ — $ — $ — $ 5 Derivative instruments: Foreign exchange contracts $ 3 $ 15,144 $ 3 $ (8,918 ) $ 6,232 Interest rate contracts 6 43 — (4 ) 45 Other derivative contracts — 182 — — 182 Total derivative instruments 9 15,369 3 (8,922 ) 6,459 Total liabilities carried at fair value $ 14 $ 15,369 $ 3 $ (8,922 ) $ 6,464 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $2.31 billion and $0.84 billion , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2019 , the fair value of other non-U.S. debt securities included $5.50 billion of supranational and non-U.S. agency bonds , $1.78 billion of corporate bonds and $0.68 billion of covered bonds. The following tables present activity related to our level 3 financial assets during the three and six months ended June 30, 2020 and 2019 , respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the three and six months ended June 30, 2020 , there were no transfers into and out of level 3. During the three and six months ended June 30, 2019 , transfers into level 3 were primarily related to collateralized loan obligations. During the three and six months ended June 30, 2019 , transfers out of level 3 were mainly related to certain non-U.S. debt securities, for which fair value was measured using prices for which observable market information, other than quoted prices included in Level 1, became available. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended June 30, 2020 Fair Total Realized and Purchases Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value (1) Change in Unrealized (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: Available-for-sale Investment securities: U.S. Treasury and federal agencies: Asset-backed securities: Collateralized loan obligations $ 1,841 $ — $ 59 $ 10 $ (19 ) $ (22 ) $ — $ — $ 1,869 Total asset-backed securities 1,841 — 59 10 (19 ) (22 ) — — 1,869 Non-U.S. debt securities: Asset-backed securities 820 — 55 1 — — — — 876 Other 44 — 1 — — — — — 45 Total non-U.S. debt securities 864 — 56 1 — — — — 921 Total available-for-sale investment securities 2,705 — 115 11 (19 ) (22 ) — — 2,790 Other assets: Derivative instruments: Foreign exchange contracts 17 (17 ) — 2 — — — — 2 $ (9 ) Total derivative instruments 17 (17 ) — 2 — — — — 2 (9 ) Total assets carried at fair value $ 2,722 $ (17 ) $ 115 $ 13 $ (19 ) $ (22 ) $ — $ — $ 2,792 $ (9 ) (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within f oreign exchange trading services. Fair Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2020 Fair Total Realized and Purchases Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value (1) Change in Unrealized (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: Available-for-sale Investment securities: Asset-backed securities: Collateralized loan obligations $ 1,820 $ — $ (24 ) $ 188 $ (61 ) $ (54 ) $ — $ — $ 1,869 Total asset-backed securities 1,820 — (24 ) 188 (61 ) (54 ) — — 1,869 Non-U.S. debt securities: Asset-backed securities 887 — (10 ) 1 — (2 ) — — 876 Other 45 — — — — — — — 45 Total non-U.S. debt securities 932 — (10 ) 1 — (2 ) — — 921 Total available-for-sale investment securities 2,752 — (34 ) 189 (61 ) (56 ) — — 2,790 Other assets: Derivative instruments: Foreign exchange contracts 4 (6 ) — 5 — (1 ) — — 2 $ (3 ) Total derivative instruments 4 (6 ) — 5 — (1 ) — — 2 (3 ) Total assets carried at fair value $ 2,756 $ (6 ) $ (34 ) $ 194 $ (61 ) $ (57 ) $ — $ — $ 2,792 $ (3 ) (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within f oreign exchange trading services. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended June 30, 2019 Fair Value as of Total Realized and Purchases Sales Settlements Transfers into Transfers Fair Value (1) Change in Unrealized Gains (Losses) Related to Financial Instruments (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: Available-for-sale Investment securities: U.S. Treasury and federal agencies: Mortgage-backed securities $ — $ — $ — $ 123 $ — $ — $ — $ — $ 123 Asset-backed securities: Collateralized loan obligations 668 — 2 455 — (119 ) 216 — 1,222 Total asset-backed securities 668 — 2 455 — (119 ) 216 — 1,222 Non-U.S. debt securities: Asset-backed securities 627 — 3 82 — 9 — — 721 Other 45 — — — — 1 — — 46 Total non-U.S. debt securities 672 — 3 82 — 10 — — 767 Total Available-for-sale investment securities 1,340 — 5 660 — (109 ) 216 — 2,112 Other assets: Derivative instruments: Foreign exchange contracts 4 (3 ) — 10 — — — — 11 $ (2 ) Total derivative instruments 4 (3 ) — 10 — — — — 11 (2 ) Total assets carried at fair value $ 1,344 $ (3 ) $ 5 $ 670 $ — $ (109 ) $ 216 $ — $ 2,123 $ (2 ) (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within foreign exchange trading services. Fair Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2019 Fair Value as of December 31, 2018 Total Realized and Purchases Sales Settlements Transfers Transfers Fair Value (1) Change in Unrealized Gains (Losses) Related to Financial Instruments (In millions) Recorded (1) Recorded (1) Assets: Available-for-sale Investment securities: U.S. Treasury and federal agencies: Mortgage-backed securities $ — $ — $ — $ 123 $ — $ — $ — $ — $ 123 Asset-backed securities: Collateralized loan obligations 593 1 — 587 — (175 ) 216 — 1,222 Total asset-backed securities 593 1 — 587 — (175 ) 216 — 1,222 Non-U.S. debt securities: Asset-backed securities 631 — 1 92 — (3 ) — — 721 Other 58 — — — — — — (12 ) 46 Total non-U.S. debt securities 689 — 1 92 — (3 ) — (12 ) 767 Collateralized mortgage obligations 2 — — — — (2 ) — — — Total Available-for-sale investment securities 1,284 1 1 802 — (180 ) 216 (12 ) 2,112 Other assets: Derivative instruments: Foreign exchange contracts 4 (5 ) — 12 — — — — 11 $ (2 ) Total derivative instruments 4 (5 ) — 12 — — — — 11 (2 ) Total assets carried at fair value $ 1,288 $ (4 ) $ 1 $ 814 $ — $ (180 ) $ 216 $ (12 ) $ 2,123 $ (2 ) (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within foreign exchange trading services. The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker/dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer. Quantitative Information about Level 3 Fair Value Measurements Fair Value Range Weighted-Average (Dollars in millions) As of June 30, 2020 As of December 31, 2019 Valuation Technique Significant Unobservable Input (1) As of June 30, 2020 As of June 30, 2020 As of December 31, 2019 Significant unobservable inputs readily available to State Street: Assets: Derivative Instruments, foreign exchange contracts $ 2 $ 4 Option model Volatility 6.3% - 13.9% 8.6 % 8.2 % Total $ 2 $ 4 Liabilities: Derivative instruments, foreign exchange contracts $ 1 $ 3 Option model Volatility 6.3% - 12.7% 8.9 % 7.0 % Total $ 1 $ 3 (1) Significant changes in these unobservable inputs may result in significant changes in fair value measurement of the derivative instrument. Fair Value Estimates Estimates of fair value for financial instruments not carried at fair value on a recurring basis in our consolidated statement of condition are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value, as they would be categorized within the fair value hierarchy, as of the dates indicated: Fair Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) June 30, 2020 Financial Assets: Cash and due from banks $ 3,685 $ 3,685 $ 3,685 $ — $ — Interest-bearing deposits with banks 90,199 90,199 — 90,199 — Securities purchased under resale agreements 4,026 4,026 — 4,026 — HTM securities purchased under the MMLF program 11,257 11,294 — 11,294 — Investment securities held-to-maturity 41,848 43,037 8,288 34,344 405 Net loans (1) 26,719 26,583 — 24,511 2,072 Other (2) 2,502 2,502 — 2,502 — Financial Liabilities: Deposits: Non-interest-bearing $ 42,132 $ 42,132 $ — $ 42,132 $ — Interest-bearing - U.S. 87,197 87,197 — 87,197 — Interest-bearing - non-U.S. 71,133 71,133 — 71,133 — Securities sold under repurchase agreements 3,513 3,513 — 3,513 — Short-term borrowings under the MMLF program 11,261 11,261 — 11,261 — Other short-term borrowings 912 912 — 912 — Long-term debt 15,587 15,865 — 15,732 133 Other (2) 2,502 2,502 — 2,502 — (1) Includes $21 million of loans classified as held-for-sale that were measured at fair value in level 2 on a non-recurring basis as of June 30, 2020 . (2) Represents a portion of underlying client assets related to our enhanced custody business, which clients have allowed us to transfer and re-pledge. Fair Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) December 31, 2019 Financial Assets: Cash and due from banks $ 3,302 $ 3,302 $ 3,302 $ — $ — Interest-bearing deposits with banks 68,965 68,965 — 68,965 — Securities purchased under resale agreements 1,487 1,487 — 1,487 — Investment securities held-to-maturity 41,782 42,157 10,299 31,682 176 Net loans (1) 26,235 26,292 — 24,432 1,860 Other (2) 7,500 7,500 — 7,500 — Financial Liabilities: Deposits: Non-interest-bearing $ 34,031 $ 34,031 $ — $ 34,031 $ — Interest-bearing - U.S. 77,504 77,504 — 77,504 — Interest-bearing - non-U.S. 70,337 70,337 — 70,337 — Securities sold under repurchase agreements 1,102 1,102 — 1,102 — Other short-term borrowings 839 839 — 839 — Long-term debt 12,509 12,770 — 12,621 149 Other (2) 7,500 7,500 — 7,500 — (1) Includes $9 million of loans classified as held-for-sale that were measured at fair value in level 2 on a non-recurring basis as of December 31, 2019 . (2) Represents a portion of underlying client assets related to our enhanced custody business, which clients have allowed us to transfer and re-pledge. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Investment securities held by us are classified as either trading account assets, AFS , HTM or equity securities held at fair value at the time of purchase and reassessed periodically, based on management’s intent. For additional information on our accounting for investment securities, refer to page 135 in Note 3 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. Trading account assets are carried at fair value. Both realized and unrealized gains and losses on trading account assets are recorded in foreign exchange trading services revenue in our consolidated statement of income. AFS securities are carried at fair value, with any allowance for credit losses recorded through the consolidated statement of income and after-tax net unrealized non-credit related gains and losses recorded in AOCI. Gains or losses related on sales of AFS investment securities are computed using the specific identification method and are recorded in gains (losses) related to investment securities, net in our consolidated statement of income. Starting in the first quarter of 2020, we supported our client's liquidity needs through the MMLF program, purchasing a total of $29 billion of investment securities under that program, $11 billion of which remain outstanding as of June 30, 2020. HTM investment securities are carried at cost, adjusted for amortization of premiums and accretion of discounts, with any allowance for credit losses recorded through the consolidated statement of income. As of June 30, 2020 , we recognized an allowance for credit losses on all HTM investment securities of $4 million . The following table presents the amortized cost, fair value and associated unrealized gains and losses of AFS and HTM investment securities as of the dates indicated: June 30, 2020 December 31, 2019 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value (In millions) Gains Losses Gains Losses Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 5,631 $ 173 $ — $ 5,804 $ 3,506 $ 9 $ 28 $ 3,487 Mortgage-backed securities 16,118 564 6 16,676 17,599 264 25 17,838 Total U.S. Treasury and federal agencies 21,749 737 6 22,480 21,105 273 53 21,325 Asset-backed securities: Student loans (1) 409 2 7 404 532 1 2 531 Credit cards 90 — — 90 90 — 1 89 Collateralized loan obligations 1,949 — 30 1,919 1,822 1 3 1,820 Total asset-backed securities 2,448 2 37 2,413 2,444 2 6 2,440 Non-U.S. debt securities: Mortgage-backed securities 1,714 — 8 1,706 1,978 3 1 1,980 Asset-backed securities 1,906 — 15 1,891 2,179 2 2 2,179 Government securities 12,964 162 7 13,119 12,243 131 1 12,373 Other (2) 9,935 135 8 10,062 8,595 73 10 8,658 Total non-U.S. debt securities 26,519 297 38 26,778 24,995 209 14 25,190 State and political subdivisions (3) 1,654 73 4 1,723 1,725 59 1 1,783 Collateralized mortgage obligations 89 1 — 90 104 — — 104 Other U.S. debt securities 2,685 63 1 2,747 2,941 32 — 2,973 Total $ 55,144 $ 1,173 $ 86 $ 56,231 $ 53,314 $ 575 $ 74 $ 53,815 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 8,179 $ 138 $ — $ 8,317 $ 10,311 $ 24 $ 3 $ 10,332 Mortgage-backed securities 28,204 1,079 7 29,276 26,297 316 44 26,569 Total U.S. Treasury and federal agencies 36,383 1,217 7 37,593 36,608 340 47 36,901 Asset-backed securities: Student loans (1) 4,148 8 104 4,052 3,783 10 41 3,752 Total asset-backed securities 4,148 8 104 4,052 3,783 10 41 3,752 Non-U.S. debt securities: Mortgage-backed securities 339 60 7 392 366 82 6 442 Government securities 393 — — 393 328 — — 328 Total non-U.S. debt securities 732 60 7 785 694 82 6 770 Collateralized mortgage obligations 585 28 6 607 697 38 1 734 Total (4) 41,848 1,313 124 43,037 41,782 470 95 42,157 HTM securities purchased under the MMLF program (5) 11,261 33 — 11,294 — — — — Total held-to-maturity securities $ 53,109 $ 1,346 $ 124 $ 54,331 $ 41,782 $ 470 $ 95 $ 42,157 (1) Primarily comprised of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans. (2) As of June 30, 2020 and December 31, 2019 , the fair value of other non-U.S. debt securities included $6.65 billion and $5.50 billion , respectively, primarily of supranational and non-U.S. agency bonds , $1.77 billion and $1.78 billion , respectively, of corporate bonds and $0.48 billion and $0.68 billion , respectively, of covered bonds. (3) As of June 30, 2020 and December 31, 2019 , the fair value of state and political subdivisions includes securities in trusts of $0.87 billion and $0.94 billion respectively. Additional information about these trusts is provided in Note 12. (4) An immaterial amount of a ccrued interest related to HTM and AFS investment securities was excluded from the amortized cost basis for the period ended June 30, 2020 . (5) As of June 30, 2020 , we recognized an allowance for credit losses of $4 million on HTM investment securities. Aggregate investment securities with carrying values of approximately $52.73 billion and $49.48 billion as of June 30, 2020 and December 31, 2019 , respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law. The following tables present the aggregate fair values of AFS investment securities that have been in a continuous unrealized loss position for less than 12 months , and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated: As of June 30, 2020 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 Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 350 $ — $ — $ — $ 350 $ — Mortgage-backed securities 1,001 5 124 1 1,125 6 Total U.S. Treasury and federal agencies 1,351 5 124 1 1,475 6 Asset-backed securities: Student loans 268 7 71 — 339 7 Credit cards — — — — — — Collateralized loan obligations 1,586 25 283 5 1,869 30 Total asset-backed securities 1,854 32 354 5 2,208 37 Non-U.S. debt securities: Mortgage-backed securities 1,246 6 206 2 1,452 8 Asset-backed securities 1,483 13 105 2 1,588 15 Government securities 1,145 7 — — 1,145 7 Other 856 7 747 1 1,603 8 Total non-U.S. debt securities 4,730 33 1,058 5 5,788 38 State and political subdivisions 344 3 22 1 366 4 Other U.S. debt securities 212 1 — — 212 1 Total $ 8,491 $ 74 $ 1,558 $ 12 $ 10,049 $ 86 As of December 31, 2019 Less than 12 months 12 months or longer Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 1,430 $ 28 $ — $ — $ 1,430 $ 28 Mortgage-backed securities 2,499 7 1,665 18 4,164 25 Total U.S. Treasury and federal agencies 3,929 35 1,665 18 5,594 53 Asset-backed securities: Student loans 271 1 127 1 398 2 Credit cards 89 1 — — 89 1 Collateralized loan obligations 862 2 278 1 1,140 3 Total asset-backed securities 1,222 4 405 2 1,627 6 Non-U.S. debt securities: Mortgage-backed securities 228 — 220 1 448 1 Asset-backed securities 672 1 109 1 781 2 Government securities 3,246 1 — — 3,246 1 Other 2,736 9 187 1 2,923 10 Total non-U.S. debt securities 6,882 11 516 3 7,398 14 State and political subdivisions 163 — 22 1 185 1 Collateralized mortgage obligations 13 — 4 — 17 — Other U.S. debt securities 219 — 14 — 233 — Total $ 12,428 $ 50 $ 2,626 $ 24 $ 15,054 $ 74 The following table presents the amortized cost and the fair value of contractual maturities of debt investment securities as of June 30, 2020 . The maturities of certain ABS, MBS and collateralized mortgage obligations are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties. As of June 30, 2020 (In millions) Under 1 Year 1 to 5 Years 6 to 10 Years Over 10 Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 1,560 $ 1,569 $ 2,022 $ 2,057 $ 2,049 $ 2,178 $ — $ — $ 5,631 $ 5,804 Mortgage-backed securities 199 206 706 726 2,639 2,672 12,574 13,072 16,118 16,676 Total U.S. Treasury and federal agencies 1,759 1,775 2,728 2,783 4,688 4,850 12,574 13,072 21,749 22,480 Asset-backed securities: Student loans 163 164 127 126 2 2 117 112 409 404 Credit cards — — — — 90 90 — — 90 90 Collateralized loan obligations 31 29 978 964 823 811 117 115 1,949 1,919 Total asset-backed securities 194 193 1,105 1,090 915 903 234 227 2,448 2,413 Non-U.S. debt securities: Mortgage-backed securities 252 251 550 546 130 129 782 780 1,714 1,706 Asset-backed securities 272 270 984 977 318 315 332 329 1,906 1,891 Government securities 4,690 4,694 7,339 7,488 689 693 246 244 12,964 13,119 Other 1,446 1,452 6,968 7,068 1,431 1,451 90 91 9,935 10,062 Total non-U.S. debt securities 6,660 6,667 15,841 16,079 2,568 2,588 1,450 1,444 26,519 26,778 State and political subdivisions 169 169 669 683 526 564 290 307 1,654 1,723 Collateralized mortgage obligations — — — — — — 89 90 89 90 Other U.S. debt securities 695 700 1,887 1,938 103 109 — — 2,685 2,747 Total $ 9,477 $ 9,504 $ 22,230 $ 22,573 $ 8,800 $ 9,014 $ 14,637 $ 15,140 $ 55,144 $ 56,231 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 3,310 $ 3,332 $ 4,840 $ 4,956 $ 5 $ 5 $ 24 $ 24 $ 8,179 $ 8,317 Mortgage-backed securities 61 63 545 557 3,716 3,898 23,882 24,758 28,204 29,276 Total U.S. Treasury and federal agencies 3,371 3,395 5,385 5,513 3,721 3,903 23,906 24,782 36,383 37,593 Asset-backed securities: Student loans 359 343 200 193 539 523 3,050 2,993 4,148 4,052 Total asset-backed securities 359 343 200 193 539 523 3,050 2,993 4,148 4,052 Non-U.S. debt securities: Mortgage-backed securities 117 112 27 27 3 3 192 250 339 392 Government securities 393 393 — — — — — — 393 393 Total non-U.S. debt securities 510 505 27 27 3 3 192 250 732 785 Collateralized mortgage obligations 149 157 274 273 5 5 157 172 585 607 Total 4,389 4,400 5,886 6,006 4,268 4,434 27,305 28,197 41,848 43,037 Held-to-maturity under money market mutual fund liquidity facility 11,261 11,294 — — — — — — 11,261 11,294 Total held-to-maturity securities $ 15,650 $ 15,694 $ 5,886 $ 6,006 $ 4,268 $ 4,434 $ 27,305 $ 28,197 $ 53,109 $ 54,331 Interest income related to debt securities is recognized in our consolidated statement of income using the effective interest method, or on a basis approximating a level rate of return over the contractual or estimated life of the security. The level rate of return considers any non-refundable fees or costs, as well as purchase premiums or discounts, adjusted as prepayments occur, resulting in amortization or accretion, accordingly. As discussed in Note 1, we adopted ASC 326 on January 1, 2020. We conduct periodic reviews of individual securities to assess whether an allowance for credit losses is required. HTM securities are evaluated for expected credit loss utilizing a probability of default methodology, or discounted cash flows assessed against the amortized cost of the investment security excluding accrued interest. An AFS security is impaired when the current fair value of an individual security is below its amortized cost basis. An allowance for credit losses on impaired AFS securities is recorded when the present value of expected future cash flows of the investment security is less than its amortized cost basis, limited to the amount by which the security’s amortized cost basis exceeds the fair value. Investment securities will be written down to fair value through the consolidated statement of income when management intends to sell (or may be required to sell) the securities before they recover in value. We monitor the credit quality of the HTM and AFS investment securities through the use of credit ratings on a quarterly basis. As of June 30, 2020 , 99% of our HTM and AFS investment portfolio is publicly rated investment grade. For additional information about the review of securities under previous other-than-temporary impairment guidance, refer to pages 140 to 141 in Note 3 to the consolidated financial statements included under Item 8. Financial Statements and Supplementary Data, in our 2019 Form 10-K. We recorded an allowance for credit losses of approximately $4 million on our HTM securities under the new CECL guidance as of June 30, 2020 . In the second quarter of 2020, we recorded no provision or charge offs on HTM securities. In the six months ended June 30, 2020 , we recorded a $4 million provision and no charge offs on HTM securities. We recorded approximately $1 million of other-than-temporary-impairment in the six months ended June 30, 2019, which resulted from adverse changes in the timing of expected future cash flows from non-U.S. mortgage- and asset backed securities. Our review of impaired AFS investment securities generally includes: • the identification and evaluation of securities that have indications of potential impairment, such as issuer-specific concerns, including deteriorating financial condition or bankruptcy; • the analysis of expected future cash flows of securities, based on quantitative and qualitative factors; • the analysis of the collectability of those future cash flows, including information about past events, current conditions, and reasonable and supportable forecasts; • the analysis of the underlying collateral for MBS and ABS; • the analysis of individual impaired securities, including the anticipated recovery period and the magnitude of the overall price decline; • evaluation of factors or triggers that could cause individual securities to be deemed impaired and those that would not support impairment; and • documentation of the results of these analyses. Substantially all of our investment securities portfolio is composed of debt securities. A critical component of our assessment of impairment of these debt securities is the identification of credit-impaired securities for which management does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. Debt securities that are not deemed to be credit-impaired are subject to additional management analysis to assess whether management intends to sell, or, more likely than not, would be required to sell, the security before the expected recovery of its amortized cost basis. With respect to certain classes of debt securities, primarily U.S. Treasuries and agency securities (mainly issued by U.S. Government entities and agencies, as well as G7 sovereigns), we consider the history of credit losses, current conditions and reasonable and supportable forecasts, which may indicate that the expectation that nonpayment of the amortized cost basis is or continues to be zero, even if the U.S. government were to technically default. Therefore, for those securities, we do not record expected credit losses. We have elected to not record an allowance on accrued interest for HTM and AFS securities. Accrued Interest on these securities is reversed against interest income when payment on a security is delinquent for greater than 90 days from the date of payment. After a review of the investment portfolio, taking into consideration current economic conditions, adverse situations that might affect our ability to fully collect principal and interest, the timing of future payments, the credit quality and performance of the collateral underlying MBS and ABS and other relevant factors, management considers the aggregate decline in fair value of the investment securities portfolio and the resulting gross pre-tax unrealized losses of $210 million related to 632 securities as of June 30, 2020 to not be the result of any material changes in the credit characteristics of the securities. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | We segregate our loans into two segments: commercial and financial loans and commercial real estate loans. We further classify commercial and financial loans as fund finance loans, leveraged loans, overdrafts and other. These classifications reflect their risk characteristics, their initial measurement attributes and the methods we use to monitor and assess credit risk. For additional information on our loans, including our internal risk-rating system used to assess our risk of credit loss for each loan, refer to pages 141 to 143 in Note 4 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. The following table presents our recorded investment in loans, by segment, as of the dates indicated: (In millions) June 30, 2020 December 31, 2019 Domestic (1) : Commercial and financial: Fund Finance (2) $ 9,696 $ 10,270 Leveraged loans 3,071 3,342 Overdrafts 2,292 1,739 Other (3) 2,450 3,411 Commercial real estate 1,944 1,766 Total domestic 19,453 20,528 Foreign (1) : Commercial and financial: Fund Finance (2) 3,986 3,145 Leveraged loans 1,230 1,119 Overdrafts 2,163 1,517 Other (3) 28 — Total foreign 7,407 5,781 Total loans 26,860 26,309 Allowance for loan losses (141 ) (74 ) Loans, net of allowance $ 26,719 $ 26,235 (1) Domestic and foreign categorization is based on the borrower’s country of domicile. (2) Fund finance loans include primarily $5,026 million loans to real money funds, $7,272 million private equity capital call finance loans and $820 million loans to business development companies as of June 30, 2020 , compared to $6,040 million loans to real money funds, $6,076 million private equity capital call finance loans and $932 million loans to business development companies as of December 31, 2019 . (3) Includes $1,448 million securities finance loans, $933 million loans to municipalities and $97 million other loans as of June 30, 2020 and $2,537 million securities finance loans, $848 million loans to municipalities and $26 million other loans as of December 31, 2019 . The commercial and financial segment is composed primarily of fund finance loans, leveraged loans, overdrafts and other loans. Fund finance loans are composed of revolving credit lines providing liquidity and leverage to mutual fund and private equity fund clients. Certain loans are pledged as collateral for access to the Federal Reserve's discount window. As of June 30, 2020 and December 31, 2019 , the loans pledged as collateral totaled $7.51 billion and $6.75 billion , respectively. As of June 30, 2020 and December 31, 2019 , we had no loans on non-accrual status and no loans 30 days or more contractually past due. We sold $127 million leveraged loans in the second quarter of 2020, of which $23 million remain unsettled and held for sale as of June 30, 2020 . In certain circumstances, we restructure troubled loans by granting concessions to borrowers experiencing financial difficulty. Once restructured, the loans are generally considered impaired until their maturity, regardless of whether the borrowers perform under the modified terms of the loans. There were no loans modified in troubled debt restructurings as of both June 30, 2020 and December 31, 2019 . We recognize an allowance for credit losses in accordance with ASC 326 for financial assets held at amortized cost and off-balance sheet commitments. Further discussion of our adoption of ASC 326 on January 1, 2020, including the impact on our consolidated financial statements, is provided in Note 1. For additional discussion on the allowance for credit loss for debt securities, please refer to Note 3. When the allowance is recorded, a provision for credit losses expense is recognized in net income. The allowance for credit losses for financial assets represents the portion of the amortized cost basis, including accrued interest for financial assets held at amortized cost, which management does not expect to recover due to expected credit losses and is presented on the statement of condition as an offset to the amortized cost basis. The accrued interest balance is presented separately on the statement of condition within accrued interest and fees receivable. The allowance for off-balance sheet commitments is presented within other liabilities. The allowance for credit losses may be determined using various methods, including discounted cash flow methods, loss-rate methods, probability-of-default methods, or other methods as determined by us. The method used to estimate expected credit losses may vary depending on the type of financial asset, our ability to predict the timing of cash flows, and the information available to us. We measure expected credit losses of financial assets on a collective (pool) basis when similar risk characteristic exist. Each reporting period, we assess whether the assets in the pool continue to display similar risk characteristics. Prior to the implementation of ASC 326, we reviewed loans for indicators of impairment. Loans where indicators existed were evaluated individually for impairment at least quarterly. For those loans where no such indicators were identified, the loans were collectively evaluated for impairment. As of December 31, 2019, we had one loan for $25 million in the commercial and financial segment that was individually evaluated for impairment and deemed to be impaired. We recorded a specific reserve of $1 million for this loan. For a financial asset that does not share risk characteristics with other assets, expected credit losses are measured based on net realizable value, that is, the difference between the discounted value of the expected future cash flows, utilizing the effective interest rate, and the amortized cost basis of the asset. As of June 30, 2020 , we had one loan for $25 million in the commercial and financial segment that no longer met the similar risk characteristics of their collective pool. When the asset is collateral dependent, which means when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are measured as the difference between the amortized cost basis of the asset and the fair value of the collateral, adjusted for the estimated costs to sell. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, factors and forecasts then prevailing may result in significant changes in the allowance for credit losses in those future periods. We estimate credit losses over the contractual life of the financial asset while factoring in prepayment activity where supported by data over a three year reasonable and supportable forecast period. We utilize a baseline, upside and downside scenario which are applied based on a probability weighting, in order to better reflect management’s expectation of expected credit losses given existing market conditions and the changes in the economic environment. The multiple scenarios are based on a three year horizon (or less depending on contractual maturity) and then revert linearly over a two year period to a ten-year historical average thereafter. The contractual term excludes expected extensions, renewals and modifications, but includes prepayment assumptions where applicable. Credit Quality Credit quality for financial assets held at amortized cost are continuously monitored by management and is reflected within the allowance for credit losses. The allowance for credit losses as reported in our consolidated statement of condition is adjusted by provision for credit losses, which is reported in earnings, and reduced by the charge-off of principal amounts, net of recoveries. We use an internal risk-rating system to assess our risk of credit loss for each financial asset. The risk-rating process incorporates the use of risk-rating tools in conjunction with management judgment. Qualitative and quantitative inputs are captured in a systematic manner and following a formal review and approval process, an internal credit rating based on our credit scale is assigned. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes asset pools based on loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods evaluations of the overall asset portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods. Credit quality is assessed and monitored at least annually, by evaluating various attributes in order to enable the earliest possible detection of any concerns with the customer’s credit rating. The results of those evaluations are utilized in underwriting new loans and transactions with counterparties and in our process for estimation of expected credit losses. In assessing the risk rating assigned to each financial asset held at amortized cost, among the factors considered are the borrower’s debt capacity, collateral coverage, payment history and delinquency experience, financial flexibility and earnings strength, the expected amounts and source of repayment, the level and nature of contingencies, if any, and the industry and geography in which the borrower operates. These factors are based on an evaluation of historical and current information, and involve subjective assessment and interpretation. Credit counterparties are evaluated and risk-rated on an individual basis at least annually. Management regularly reviews financial assets in the portfolio to assess credit quality indicators and to determine appropriate loans classification and grading in accordance with applicable bank regulations. Our internal risk rating methodology assigns risk ratings ranging from Investment Grade, Speculative, Special Mention, Substandard, Doubtful and Loss. • Investment Grade . Assets consisting of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment. Approximately 79% of our loans were rated as investment grade as of June 30, 2020 with external credit ratings, or equivalent, of "BBB-" or better. • Speculative . Assets consisting of counterparties that face ongoing uncertainties or exposure to business, financial or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met. Assets rated as speculative, which is approximately 21% of our loans as of June 30, 2020 , primarily comprises our leveraged loans. Approximately 83% of those leveraged loans have an external credit rating, or equivalent, of "BB" or "B" as of June 30, 2020 . • Special Mention. Assets consisting of counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects. • Substandard. Assets consisting of counterparties with well-defined weakness that jeopardizes repayment with the possibility we will sustain some loss. • Doubtful. Assets consisting of counterparties with well-defined weakness which make collection or liquidation in full highly questionable and improbable. • Loss. Assets which are uncollectible or have little value. The following tables present our recorded investment in each class of loans by credit quality indicator as of the dates indicated: June 30, 2020 Commercial and Financial Commercial Real Estate Total Loans (In millions) Investment grade $ 19,413 $ 1,777 $ 21,190 Speculative 5,449 167 5,616 Special mention 54 — 54 Total (1) $ 24,916 $ 1,944 $ 26,860 December 31, 2019 Commercial and Financial Commercial Real Estate Total Loans (In millions) Investment grade $ 19,501 $ 1,766 $ 21,267 Speculative 5,008 — 5,008 Special mention 25 — 25 Substandard 9 — 9 Total (1) $ 24,543 $ 1,766 $ 26,309 (1) Loans Include $4,455 million and $3,256 million of overdrafts as of June 30, 2020 and December 31, 2019 , respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. Financial assets held at amortized cost that are not loans are disaggregated based on product type. We assess credit risk based on the entire balance within fees receivable. Securities purchased under a resale agreement and securities-financing within our principal business utilized the collateral maintenance provisions included within ASC 326. An allowance for credit losses is recognized for any remaining exposure based on counterparty type. The allowance for credit losses for off-balance sheet credit exposures, recorded in accrued expenses and other liabilities in our consolidated statement of condition, represents management’s’ estimate of credit losses primarily in outstanding letters and lines of credit and other credit-enhancement facilities provided to our clients and outstanding as of the balance sheet date. The allowance is evaluated quarterly by management. Factors considered in evaluating the appropriate level of this allowance are similar to those considered with respect to the allowance for credit losses on financial assets held at amortized cost. Provisions to maintain the allowance at a level considered by us to be appropriate to absorb estimated credit losses in outstanding facilities are recorded in the provision for credit losses in our consolidated statement of income. The following table presents the amortized cost basis, by year of origination and credit quality indicator as of June 30, 2020 . For origination years before the fifth annual period, we present the aggregate amortized cost basis of loans. For purchased loans, the date of issuance is used to determine the year of origination, not the date of acquisition. For modified, extended or renewed lending arrangements, we evaluate whether a credit event has occurred which would consider the loan to be a new arrangement. (In millions) 2020 2019 2018 2017 2016 2015 Prior Revolving Loans Total (1)(2) Domestic loans: Commercial and financial: Risk Rating: Investment grade $ 2,478 $ 438 $ 5 $ 120 $ — $ — $ — $ 10,465 $ 13,506 Speculative 322 999 944 741 108 — — 835 3,949 Special mention — — 29 25 — — — — 54 Total commercial and financing $ 2,800 $ 1,437 $ 978 $ 886 $ 108 $ — $ — $ 11,300 $ 17,509 Commercial real estate: Risk Rating: Investment grade $ 178 $ 440 $ 654 $ 279 $ 197 $ 29 $ — $ — $ 1,777 Speculative — 110 57 — — — — — 167 Total commercial real estate $ 178 $ 550 $ 711 $ 279 $ 197 $ 29 $ — $ — $ 1,944 Non-U.S. loans: Commercial and financial: Risk Rating: Investment grade $ 2,001 $ — $ — $ — $ — $ — $ — $ 3,906 $ 5,907 Speculative 336 412 348 208 25 — 63 108 1,500 Total commercial and financing $ 2,337 $ 412 $ 348 $ 208 $ 25 $ — $ 63 $ 4,014 $ 7,407 Total loans $ 5,315 $ 2,399 $ 2,037 $ 1,373 $ 330 $ 29 $ 63 $ 15,314 $ 26,860 Off-balance sheet commitments and guarantees: Unfunded credit facilities $ — $ — $ — $ — $ — $ — $ — $ 33,126 $ 33,126 Indemnified securities financing 367,214 — — — — — — — 367,214 Standby letters of credit — — — — — — — 3,246 3,246 Total off-balance sheet commitments and guarantees $ 367,214 $ — $ — $ — $ — $ — $ — $ 36,372 $ 403,586 Total financing receivables and off-balance sheet commitments and guarantees $ 372,529 $ 2,399 $ 2,037 $ 1,373 $ 330 $ 29 $ 63 $ 51,686 $ 430,446 (1) Any reserve associated with accrued interest is not material. (2) As of June 30, 2020 , accrued interest receivable of $63 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table. The following table presents the activity in the allowance for credit losses by portfolio and class for the periods indicated: Three Months Ended June 30, 2020 Commercial and Financial (In millions) Leveraged Loans Other Loans Commercial Real Estate Off-Balance Sheet Commitments All Other (2) Total Credit Reserve Allowance for credit losses: Beginning balance $ 83 $ 10 $ 4 $ 22 $ 5 $ 124 Charge-offs (1) (14 ) — — — — (14 ) Provision 43 10 4 (4 ) (1 ) 52 FX translation 1 — — — — 1 Ending balance $ 113 $ 20 $ 8 $ 18 $ 4 $ 163 (1) Related to the sale of leveraged loans in the second quarter of 2020. (2) Includes the reserves on HTM investment securities. Six Months Ended June 30, 2020 Commercial and Financial (In millions) Leveraged Loans Other Loans Commercial Real Estate Off-Balance Sheet Commitments All Other (2) Total Credit Reserve Allowance for credit losses: Beginning balance $ 61 $ 10 $ 2 $ 19 $ 1 $ 93 Charge-offs (1) (19 ) — — — — (19 ) Provision 70 10 6 (1 ) 3 88 FX translation 1 — — — — 1 Ending balance $ 113 $ 20 $ 8 $ 18 $ 4 $ 163 (1) Primarily related to the sale of leveraged loans in the second quarter of 2020. (2) Includes the reserves on HTM investment securities. Allowance for Loan Losses under Incurred Loss Methodology for the period ended June 30, 2019 The following table presents activity in the allowance for loan losses as of June 30, 2019 under the incurred loss methodology: (In millions) Three months ended June 30, 2019 Allowance for loan losses: Beginning balance $ 70 Provision for credit losses (1) 1 Other (2) 1 Ending balance $ 72 (In millions) Six months ended June 30, 2019 Allowance for loan losses: Beginning balance $ 67 Provision for credit losses (1) 5 Ending balance $ 72 (1) The provisions for credit losses were primarily attributable to exposure to purchased leveraged loans to non-investment grade loans. (2) Consists primarily of FX translation. Loans are reviewed on a regular basis, and any provisions for loan losses that are recorded reflect management's estimate of the amount necessary to maintain the allowance for loan losses at a level considered appropriate to absorb estimated incurred losses in the loan and lease portfolio. The $52 million provision for credit losses recognized for the three months ended June 30, 2020 was primarily due to portfolio credit migration within our loan portfolio, as well as a downward revision in management’s economic outlook. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table presents changes in the carrying amount of goodwill during the periods indicated: (In millions) Investment Servicing (1) Investment Management Total Goodwill: Ending balance December 31, 2018 $ 7,180 $ 266 $ 7,446 Acquisitions (2) 122 — 122 Foreign currency translation (13 ) 1 (12 ) Ending balance December 31, 2019 $ 7,289 $ 267 $ 7,556 Foreign currency translation (16 ) (2 ) (18 ) Ending balance June 30, 2020 $ 7,273 $ 265 $ 7,538 (1) Investment Servicing includes our acquisition of CRD. (2) We completed the purchase price accounting for CRD as of March 31, 2019. Upon completion of valuation procedures related to the acquired assets and assumed liabilities, primarily the identifiable intangible assets, we recorded measurement period adjustments resulting in an increase in the goodwill of $113 million and a decrease of $93 million in intangible assets. The following table presents changes in the net carrying amount of other intangible assets during the periods indicated: (In millions) Investment Servicing (1) Investment Management Total Other intangible assets: Ending balance December 31, 2018 $ 2,218 $ 151 $ 2,369 Acquisitions (2) (93 ) — (93 ) Amortization (207 ) (29 ) (236 ) Foreign currency translation (10 ) — (10 ) Ending balance December 31, 2019 $ 1,908 $ 122 $ 2,030 Amortization (102 ) (14 ) (116 ) Ending balance June 30, 2020 $ 1,806 $ 108 $ 1,914 (1) Investment Servicing includes our acquisition of CRD. (2) We completed the purchase price accounting for CRD as of March 31, 2019. Upon completion of valuation procedures related to the acquired assets and assumed liabilities, primarily the identifiable intangible assets, we recorded measurement period adjustments resulting in a decrease in the fair value of intangible assets of $93 million in intangible assets with a corresponding increase to goodwill. The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated: June 30, 2020 Gross Accumulated Net (In millions) Other intangible assets: Client relationships $ 2,639 $ (1,329 ) $ 1,310 Technology 390 (92 ) 298 Core deposits 673 (398 ) 275 Other 100 (69 ) 31 Total $ 3,802 $ (1,888 ) $ 1,914 December 31, 2019 Gross Accumulated Net (In millions) Other intangible assets: Client relationships $ 3,104 $ (1,718 ) $ 1,386 Technology 403 (87 ) 316 Core deposits 673 (381 ) 292 Other 100 (64 ) 36 Total $ 4,280 $ (2,250 ) $ 2,030 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2020 | |
Other Assets [Abstract] | |
Other Assets | Other Assets The following table presents the components of other assets as of the dates indicated: (In millions) June 30, 2020 December 31, 2019 Securities borrowed (1) $ 13,035 $ 18,524 Derivative instruments, net 4,771 4,753 Bank-owned life insurance 3,442 3,395 Investments in joint ventures and other unconsolidated entities 2,696 2,899 Collateral, net 1,779 874 Receivable for securities settlement 1,368 336 Right-of-use assets 802 858 Accounts receivable 715 432 Prepaid expenses 446 395 Income taxes receivable 293 309 Deferred tax assets, net of valuation allowance (2) 199 216 Deposits with clearing organizations 58 58 Other (3) 891 962 Total $ 30,495 $ 34,011 (1) Refer to Note 8 , for further information on the impact of collateral on our financial statement presentation of securities borrowing and securities lending transactions. (2) Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction. (3) Consists primarily of advances for $0.60 billion and $0.67 billion as of June 30, 2020 and December 31, 2019, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative financial instruments to support our clients' needs and to manage our interest rate and currency risks. These financial instruments consist of FX contracts such as forwards, futures and options contracts; interest rate contracts such as interest rate swaps (cross currency and single currency) and futures; and other derivative contracts. Derivative instruments used for risk management purposes that are highly effective in offsetting the risk being hedged are generally designated as hedging instruments in hedge accounting relationships while others are economic hedges and not designated in hedge accounting relationships. For additional information on our derivative financial instruments, including derivatives not designated as hedging instruments, refer to pages 147 to 148 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. Derivatives Designated as Hedging Instruments For additional information on our derivatives designated as hedging instruments, including our risk management objectives and hedging documentation methodologies, refer to page 148 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. Fair Value Hedges Derivatives designated as fair value hedges are utilized to mitigate the risk of changes in the fair values of recognized assets and liabilities, including long-term debt, AFS securities, and foreign currency investment securities. We use interest rate or FX contracts in this manner to manage our exposure to changes in the fair value of hedged items caused by changes in interest rates or FX rates. Changes in the fair value of the derivative and changes in fair value of the hedged item due to changes in the hedged risk are recognized in earnings in the same line item. If a hedge is terminated, all remaining adjustments to the carrying amount of the hedged item shall be amortized over a period that is consistent with the amortization of other discounts or premiums associated with the hedged item . Cash Flow Hedges Derivatives designated as cash flow hedges are utilized to offset the variability of cash flows of recognized assets or liabilities or forecasted transactions. We have entered into FX contracts to hedge the change in cash flows attributable to FX movements in foreign currency denominated investment securities. Additionally, we have entered into interest rate swap agreements to hedge the forecasted cash flows associated with LIBOR indexed floating-rate loans. The interest rate swaps synthetically convert the loan interest receipts from a variable-rate to a fixed-rate, thereby mitigating the risk attributable to changes in the LIBOR benchmark rate. Changes in fair value of the derivatives designated as cash flow hedges are initially recorded in AOCI and then reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings and are presented in the same income statement line item as the earnings effect of the hedged item. If the hedge relationship is terminated, the change in fair value on the derivative recorded in AOCI is reclassified into earnings consistent with the timing of the hedged item. For hedge relationships that are discontinued because a forecasted transaction is not expected to occur according to the original hedge terms, any related derivative values recorded in AOCI are immediately recognized in earnings. As of June 30, 2020 , the maximum maturity date of the underlying loans is approximately 4 years . Net Investment Hedges Derivatives categorized as net investment hedges are entered into to protect the net investment in our foreign operations against adverse changes in exchange rates. We use FX forward contracts to convert the foreign currency risk to U.S. dollars to mitigate our exposure to fluctuations in FX rates. The changes in fair value of the FX forward contracts are recorded, net of taxes, in the foreign currency translation component of other comprehensive income (OCI). The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments entered into in connection with our trading and asset-and-liability management activities as of the dates indicated: (In millions) June 30, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Interest-rate contracts: Futures $ 2,500 $ 4,368 Foreign exchange contracts: Forward, swap and spot 2,614,018 2,378,808 Options purchased 1,165 1,581 Options written 907 1,110 Futures 1,436 1,040 Other: Stable value contracts (1) 29,060 26,895 Deferred value awards (2) 426 389 Derivatives designated as hedging instruments: Interest-rate contracts: Swap agreements 15,929 15,196 Foreign exchange contracts: Forward and swap 5,516 3,176 (1) The notional value of the stable value contracts represents our maximum exposure. However, exposure to various stable value contracts is generally contractually limited to substantially lower amounts than the notional values. (2) Represents grants of deferred value awards to employees; refer to pages 147 to 148 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. Notional amounts are provided here as an indication of the volume of our derivative activity and serve as a reference to calculate the fair values of the derivative. The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8 . Fair Value Derivative Assets (1) Derivative Liabilities (2) (In millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 15,974 $ 15,140 $ 15,547 $ 15,054 Other derivative contracts — — 185 182 Total $ 15,974 $ 15,140 $ 15,732 $ 15,236 Derivatives designated as hedging instruments: Foreign exchange contracts $ 16 $ — $ 138 $ 96 Interest-rate contracts 51 8 56 49 Total $ 67 $ 8 $ 194 $ 145 (1) Derivative assets are included within other assets in our consolidated statement of condition. (2) Derivative liabilities are included within accrued expenses and other liabilities in our consolidated statement of condition. The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Derivatives not designated as hedging instruments: Foreign exchange contracts Foreign exchange trading services revenue $ 215 $ 156 $ 548 $ 316 Foreign exchange contracts Interest expense 17 (59 ) 19 (98 ) Interest rate contracts Foreign exchange trading services revenue — — 3 (1 ) Other derivative contracts Compensation and employee benefits (45 ) (46 ) (112 ) (120 ) Total $ 187 $ 51 $ 458 $ 97 The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships: June 30, 2020 Hedged Items Currently Designated Hedged Items No Longer Designated (1) (In millions) Carrying Amount of Assets and Liabilities Cumulative Hedge Accounting Basis Adjustments Carrying Amount of Assets and Liabilities Cumulative Hedge Accounting Basis Adjustments Long-term debt $ 10,515 $ 762 $ 1,200 $ (2 ) Available-for-sale securities 873 55 — — Total $ 11,388 $ 817 $ 1,200 $ (2 ) December 31, 2019 Hedged Items Currently Designated Hedged Items No Longer Designated (1) (In millions) Carrying Amount of Assets and Liabilities Cumulative Hedge Accounting Basis Adjustments Carrying Amount of Assets and Liabilities Cumulative Hedge Accounting Basis Adjustments Long-term debt $ 9,769 $ 164 $ 1,199 $ (8 ) Available-for-sale securities 940 49 — — Total $ 10,709 $ 213 $ 1,199 $ (8 ) (1) Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date. As of June 30, 2020 and December 31, 2019 , the total notional amount of the interest rate swaps of fair value hedges was $10.93 billion and $10.20 billion , respectively. The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Three Months Ended June 30, Three Months Ended June 30, 2020 2019 2020 2019 (In millions) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain Derivatives designated as fair value hedges: Interest rate contracts Net interest income $ 3 $ (8 ) Available-for-sale securities (1) Net interest income $ (4 ) $ 7 Interest rate contracts Net interest income 36 185 Long-term debt Net interest income (39 ) (183 ) Total $ 39 $ 177 $ (43 ) $ (176 ) Six Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In millions) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain Derivatives designated as fair value hedges: Interest rate contracts Net interest income (8 ) (11 ) Available-for-sale securities (2) Net interest income 6 11 Interest rate contracts Net interest income 583 291 Long-term debt Net interest income (574 ) (285 ) Total $ 575 $ 280 $ (568 ) $ (274 ) (1) In the three months ended June 30, 2020 , $3 million of net unrealized gains on AFS investment securities designated in fair value hedges was recognized in OCI compared to $5 million of net unrealized gains in the same period in 2019 . (2) In the six months ended June 30, 2020 , $4 million of net unrealized losses on AFS investment securities designated in fair value hedges was recognized in OCI compared to $3 million of net unrealized gains in the same period in 2019 . Three Months Ended June 30, Three Months Ended June 30, 2020 2019 2020 2019 (In millions) Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Derivatives designated as cash flow hedges: Interest rate contracts $ 21 $ 21 Net interest income $ 14 $ (2 ) Foreign exchange contracts 9 (15 ) Net interest income 7 7 Total derivatives designated as cash flow hedges $ 30 $ 6 $ 21 $ 5 Derivatives designated as net investment hedges: Foreign exchange contracts $ (86 ) $ (2 ) Gains (Losses) related to investment securities, net $ — $ — Total derivatives designated as net investment hedges (86 ) (2 ) — — Total $ (56 ) $ 4 $ 21 $ 5 Six Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In millions) Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Derivatives designated as cash flow hedges: Interest rate contracts $ 179 $ 31 Net interest income $ 14 $ (4 ) Foreign exchange contracts 19 12 Net interest income 14 14 Total derivatives designated as cash flow hedges $ 198 $ 43 $ 28 $ 10 Derivatives designated as net investment hedges: Foreign exchange contracts $ 22 $ 18 Gains (losses) related to investment securities, net $ — $ — Total derivatives designated as net investment hedges 22 18 — — Total $ 220 $ 61 $ 28 $ 10 Derivatives Netting and Credit Contingencies Netting Derivatives receivable and payable as well as cash collateral from the same counterparty are netted in the consolidated statement of condition for those counterparties with whom we have legally binding master netting agreements in place. In addition to cash collateral received and transferred presented on a net basis, we also receive and transfer collateral in the form of securities, which mitigate credit risk but are not eligible for netting. Additional information on netting is provided in Note 8 . Credit Contingencies Certain of our derivatives are subject to master netting agreements with our derivative counterparties containing credit risk-related contingent features, which requires us to maintain an investment grade credit rating with the various credit rating agencies. If our rating falls below investment grade, we would be in violation of the provisions, and counterparties to the derivatives could request immediate payment or demand full overnight collateralization on derivatives instruments in net liability positions. The aggregate fair value of all derivatives with credit contingent features and in a liability position as of June 30, 2020 totaled approximately $1.77 billion , against which we provided $1.03 billion of collateral in the normal course of business. If our credit related contingent features underlying these agreements were triggered as of June 30, 2020 , the maximum additional collateral we would be required to post to our counterparties is approximately $0.74 billion . |
Offsetting Arrangements
Offsetting Arrangements | 6 Months Ended |
Jun. 30, 2020 | |
Offsetting [Abstract] | |
Offsetting Arrangements | Offsetting Arrangements For additional information on our offsetting arrangements, refer to page 152 in Note 11 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. As of June 30, 2020 and December 31, 2019 , the value of securities received as collateral from third parties where we are permitted to transfer or re-pledge the securities totaled $8.86 billion and $10.09 billion , respectively, and the fair value of the portion that had been transferred or re-pledged as of the same dates was $1.94 billion and $5.72 billion , respectively. The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated: Assets: June 30, 2020 Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 15,990 $ (9,285 ) $ 6,705 $ — $ 6,705 Interest rate contracts (6) 51 (16 ) 35 — 35 Cash collateral and securities netting NA (1,969 ) (1,969 ) (451 ) (2,420 ) Total derivatives 16,041 (11,270 ) 4,771 (451 ) 4,320 Other financial instruments: Resale agreements and securities borrowing (7)(8) 97,012 (79,951 ) 17,061 (15,367 ) 1,694 Total derivatives and other financial instruments $ 113,053 $ (91,221 ) $ 21,832 $ (15,818 ) $ 6,014 Assets: December 31, 2019 Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 15,140 $ (8,081 ) $ 7,059 $ — $ 7,059 Interest rate contracts (6) 8 (4 ) 4 — 4 Cash collateral and securities netting NA (2,310 ) (2,310 ) (685 ) (2,995 ) Total derivatives 15,148 (10,395 ) 4,753 (685 ) 4,068 Other financial instruments: Resale agreements and securities borrowing (7)(8) 179,989 (159,978 ) 20,011 (19,572 ) 439 Total derivatives and other financial instruments $ 195,137 $ (170,373 ) $ 24,764 $ (20,257 ) $ 4,507 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities in connection with our securities borrowing transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Variation margin payments presented as settlements rather than collateral. (7) Included in the $17.06 billion as of June 30, 2020 were $4.03 billion of resale agreements and $13.04 billion of collateral provided related to securities borrowing. Included in the $20.01 billion as of December 31, 2019 were $1.49 billion of resale agreements and $18.52 billion of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions. (8) Offsetting of resale agreements primarily relates to our involvement in FICC, where we settle transactions on a net basis for payment and delivery through the Fedwire system. NA Not applicable The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated: Liabilities: June 30, 2020 Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 15,685 $ (9,285 ) $ 6,400 $ — $ 6,400 Interest rate contracts (6) 56 (16 ) 40 — 40 Other derivative contracts 185 — 185 — 185 Cash collateral and securities netting NA (1,546 ) (1,546 ) (571 ) (2,117 ) Total derivatives 15,926 (10,847 ) 5,079 (571 ) 4,508 Other financial instruments: Repurchase agreements and securities lending (7)(8) 89,465 (79,951 ) 9,514 (8,036 ) 1,478 Total derivatives and other financial instruments $ 105,391 $ (90,798 ) $ 14,593 $ (8,607 ) $ 5,986 Liabilities: December 31, 2019 Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 15,150 $ (8,081 ) $ 7,069 $ — $ 7,069 Interest rate contracts (6) 49 (4 ) 45 — 45 Other derivative contracts 182 — 182 — 182 Cash collateral and securities netting NA (837 ) (837 ) (557 ) (1,394 ) Total derivatives 15,381 (8,922 ) 6,459 (557 ) 5,902 Other financial instruments: Repurchase agreements and securities lending (7)(8) 171,853 (159,977 ) 11,876 (10,793 ) 1,083 Total derivatives and other financial instruments $ 187,234 $ (168,899 ) $ 18,335 $ (11,350 ) $ 6,985 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities provided in connection with our securities lending transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Variation margin payments presented as settlements rather than collateral. (7) Included in the $9.51 billion as of June 30, 2020 were $3.51 billion of repurchase agreements and $6.00 billion of collateral received related to securities lending transactions. Included in the $11.88 billion as of December 31, 2019 were $1.10 billion of repurchase agreements and $10.77 billion of collateral received related to securities lending transactions. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilit ies, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions . (8) Offsetting of repurchase agreements primarily relates to our involvement in FICC, where we settle transactions on a net basis for payment and delivery through the Fedwire system. NA Not applicable The securities transferred under resale and repurchase agreements typically are U.S. Treasury, agency and agency MBS. In our principal securities borrowing and lending arrangements, the securities transferred are predominantly equity securities and some corporate debt securities. The fair value of the securities transferred may increase in value to an amount greater than the amount received under our repurchase and securities lending arrangements, which exposes us to counterparty risk. We require the review of the price of the underlying securities in relation to the carrying value of the repurchase agreements and securities lending arrangements on a daily basis and when appropriate, adjust the cash or security to be obtained or returned to counterparties that is reflective of the required collateral levels. The following table summarizes our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated: As of June 30, 2020 As of December 31, 2019 (In millions) Overnight and Continuous Up to 30 Days Greater than 90 Days Total Overnight and Continuous Up to 30 Days Greater than 90 Days Total Repurchase agreements: U.S. Treasury and agency securities $ 79,585 $ — $ — $ 79,585 $ 156,465 $ — $ — $ 156,465 Total 79,585 — — 79,585 156,465 — — 156,465 Securities lending transactions: US Treasury and agency securities 23 — — 23 15 — — 15 Corporate debt securities 143 — — 143 354 — — 354 Equity securities 6,509 35 668 7,212 7,389 — 130 7,519 Other (1) 2,502 — — 2,502 7,500 — — 7,500 Total 9,177 35 668 9,880 15,258 — 130 15,388 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 88,762 $ 35 $ 668 $ 89,465 $ 171,723 $ — $ 130 $ 171,853 (1) Represents a security interest in underlying client assets related to our enhanced custody business, which assets clients have allowed us to transfer and re-pledge. |
Commitments and Guarantees
Commitments and Guarantees | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Guarantees | Commitments and Guarantees For additional information on our commitments and guarantees, refer to page 155 in Note 12 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. The following table presents the aggregate gross contractual amounts of our off-balance sheet commitments and off-balance sheet guarantees as of the dates indicated: (In millions) June 30, 2020 December 31, 2019 Commitments: Unfunded credit facilities (1) $ 33,126 $ 29,697 Guarantees (2) : Indemnified securities financing $ 367,214 $ 367,901 Standby letters of credit 3,246 3,324 (1) As of June 30, 2020 , approximately 73% of our unfunded commitments to extend credit expire within one year. (2) The potential losses associated with these guarantees equal the gross contractual amounts and do not consider the value of any collateral or reflect any participations to independent third parties. Indemnified Securities Financing For additional information on our indemnified securities financing, refer to page 155 in Note 12 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated: (In millions) June 30, 2020 December 31, 2019 Fair value of indemnified securities financing $ 367,214 $ 367,901 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 384,761 385,428 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 53,273 45,658 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 56,829 48,887 In certain cases, we participate in securities finance transactions as a principal. As a principal, we borrow securities from the lending client and then lend such securities to the subsequent borrower, either our client or a broker/dealer. Our right to receive and obligation to return collateral in connection with our securities lending transactions are recorded in other assets and other liabilities, respectively, in our consolidated statement of condition. As of June 30, 2020 and December 31, 2019 , we had approximately $13.04 billion and $18.52 billion , respectively, of collateral provided and approximately $6.00 billion and $10.77 billion , respectively, of collateral received from clients in connection with our participation in principal securities finance transactions. FICC Guarantee As a sponsoring member in the FICC member program, we provide a guarantee to FICC in the event a customer fails to perform its obligations under a transaction. In order to minimize the risk associated with this guarantee, sponsored members acting as buyers generally grant a security interest in the subject securities received under and held on their behalf by State Street. For additional information on our repurchase and reverse repurchase agreements, please refer to Note 8 . |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal and Regulatory Matters In the ordinary course of business, we and our subsidiaries are involved in disputes, litigation, and governmental or regulatory inquiries and investigations, both pending and threatened. These matters, if resolved adversely against us or settled, may result in monetary awards or payments, fines and penalties or require changes in our business practices. The resolution or settlement of these matters is inherently difficult to predict. Based on our assessment of these pending matters, we do not believe that the amount of any judgment, settlement or other action arising from any pending matter is likely to have a material adverse effect on our consolidated financial condition. However, an adverse outcome or development in certain of the matters described below could have a material adverse effect on our consolidated results of operations for the period in which such matter is resolved, or an accrual is determined to be required, on our consolidated financial condition, or on our reputation. We evaluate our needs for accruals of loss contingencies related to legal and regulatory proceedings on a case-by-case basis. When we have a liability that we deem probable, and we deem the amount of such liability can be reasonably estimated as of the date of our consolidated financial statements, we accrue our estimate of the amount of loss. We also consider a loss probable and establish an accrual when we make, or intend to make, an offer of settlement. Once established, an accrual is subject to subsequent adjustment as a result of additional information. The resolution of legal and regulatory proceedings and the amount of reasonably estimable loss (or range thereof) are inherently difficult to predict, especially in the early stages of proceedings. Even if a loss is probable, an amount (or range) of loss might not be reasonably estimated until the later stages of the proceeding due to many factors such as the presence of complex or novel legal theories, the discretion of governmental authorities in seeking sanctions or negotiating resolutions in civil and criminal matters, the pace and timing of discovery and other assessments of facts and the procedural posture of the matter (collectively, "factors influencing reasonable estimates"). As of June 30, 2020 , our aggregate accruals for loss contingencies for legal, regulatory and related matters totaled approximately $147 million , including potential fines by government agencies and civil litigation with respect to the matters specifically discussed below. To the extent that we have established accruals in our consolidated statement of condition for probable loss contingencies, such accruals may not be sufficient to cover our ultimate financial exposure associated with any settlements or judgments. Any such ultimate financial exposure, or proceedings to which we may become subject in the future, could have a material adverse effect on our businesses, on our future consolidated financial statements or on our reputation. As of June 30, 2020 , for those matters for which we have accrued probable loss contingencies (including the Invoicing Matter described below) and for other matters for which loss is reasonably possible (but not probable) in future periods, and for which we are able to estimate a range of reasonably possible loss, our estimate of the aggregate reasonably possible loss (in excess of any accrued amounts) ranges up to approximately $65 million . Our estimate with respect to the aggregate reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties, which may change quickly and significantly from time to time, particularly if and as we engage with applicable governmental agencies or plaintiffs in connection with a proceeding. Also, the matters underlying the reasonably possible loss will change from time to time. As a result, actual results may vary significantly from the current estimate. In certain pending matters, it is not currently feasible to reasonably estimate the amount or a range of reasonably possible loss, and such losses, which may be significant, are not included in the estimate of reasonably possible loss discussed above. This is due to, among other factors, the factors influencing reasonable estimates described above. An adverse outcome in one or more of the matters for which we have not estimated the amount or a range of reasonably possible loss, individually or in the aggregate, could have a material adverse effect on our businesses, on our future consolidated financial statements or on our reputation. Given that our actual losses from any legal or regulatory proceeding for which we have provided an estimate of the reasonably possible loss could significantly exceed such estimate, and given that we cannot estimate reasonably possible loss for all legal and regulatory proceedings as to which we may be subject now or in the future, no conclusion as to our ultimate exposure from current pending or potential legal or regulatory proceedings should be drawn from the current estimate of reasonably possible loss. The following discussion provides information with respect to significant legal, governmental and regulatory matters. Invoicing Matter In 2015, we determined that we had incorrectly invoiced clients for certain expenses. We have reimbursed most of our affected customers for those expenses, and we have implemented enhancements to our billing processes. In connection with our enhancements to our billing processes, we continue to review historical billing practices and may from time to time identify additional remediation. In 2017, we identified an additional area of incorrect expense billing associated with mailing services in our retirement services business. We currently expect the cumulative total of our payments to customers for these invoicing errors, including the error in the retirement services business, to be at least $375 million , all of which has been paid or is accrued. However, we may identify additional remediation costs. In March 2017, a purported class action was commenced against us alleging that our invoicing practices violated duties owed to retirement plan customers under the Employee Retirement Income Security Act. In addition, we have received a purported class action demand letter alleging that our invoicing practices were unfair and deceptive under Massachusetts law. A class of customers, or particular customers, may assert that we have not paid to them all amounts incorrectly invoiced, and may seek double or treble damages under Massachusetts law. We are also cooperating with investigations by governmental and regulatory authorities on these matters, including the civil and criminal divisions of the DOJ and the DOL, which reviews could result in significant fines or other sanctions, civil and criminal, against us. In June 2019, we reached an agreement with the SEC to settle its claims that we violated the recordkeeping provisions of Section 34(b) of the Investment Company Act of 1940 and caused violations of Section 31(a) of the Investment Company Act and Rules 31a-1(a) and 31a-1(b) thereunder in connection with our overcharges of customers which are registered investment companies. In reaching this settlement, we neither admitted nor denied the claims contained in the SEC’s order, and agreed to pay a civil monetary penalty of $40 million . Also in June 2019, we reached an agreement with the Massachusetts Attorney General’s office to resolve its claims related to this matter. In reaching this settlement, we neither admitted nor denied the claims in the order, and agreed to pay a civil monetary penalty of $5.5 million . The costs associated with these settlements were within our related previously established accruals for loss contingencies. The SEC and Massachusetts Attorney General’s office settlements both recognize that the payment of $48.8 million in disgorgement and interest is satisfied by our direct reimbursements of our customers. In January 2020, the DOJ outlined a framework for a possible resolution of their review. We are discussing the terms of a potential settlement of this matter with the DOJ. Separately, we have inquired of the DOL as to the status of their review but have not entered into settlement discussions with the DOL. There can be no assurance that any settlement with the DOJ or DOL will be reached on financial or other terms acceptable to us or at all. The aggregate amount of penalties that may potentially be imposed upon us in connection with the resolution of all outstanding investigations into our historical billing practices is not currently known. We have established a legal accrual with respect to the pending governmental investigations and civil litigation with respect to this matter; however, our ultimate liability with respect to this matter might be significantly in excess of our current accrual. Government authorities have significant discretion in criminal and civil matters as to the fines and other penalties they may seek to impose. Any resolution of the DOJ and DOL claims may involve penalties that could be a significant percentage, or a multiple of, all or a portion of the overcharge. The severity of such fines or penalties could take into account factors such as the amount or duration of our incorrect invoicing and the government’s or regulators’ assessment of the conduct of our employees, as well as prior conduct such as that which resulted in our January 2017 deferred prosecution agreement and settlement of civil claims regarding our indirect FX business. The outcome of any of these proceedings and, in particular, any criminal sanction could materially adversely affect our results of operations and could have significant additional consequences for our business and reputation. Federal Reserve/Massachusetts Division of Banks Written Agreement On June 1, 2015, we entered into a written agreement with the Federal Reserve and the Massachusetts Division of Banks relating to deficiencies identified in our compliance programs with the requirements of the Bank Secrecy Act, Anti-Money Laundering regulations and U.S. economic sanctions regulations promulgated by the Office of Foreign Assets Control. As part of this enforcement action, we have been required to, among other things, implement improvements to our compliance programs. In June 2020, the Federal Reserve and the Massachusetts Division of Banks terminated the written agreement, based on our compliance with its requirements. Shareholder Litigation A shareholder of ours has filed a derivative complaint against the Company’s past and present officers and directors to recover alleged losses incurred by the Company relating to the invoicing matter and to the Ohio public retirement plans matter. Income Taxes In determining our provision for income taxes, we make certain judgments and interpretations with respect to tax laws in jurisdictions in which we have business operations. Because of the complex nature of these laws, in the normal course of our business, we are subject to challenges from U.S. and non-U.S. income tax authorities regarding the amount of income taxes due. These challenges may result in adjustments to the timing or amount of taxable income or deductions or the allocation of taxable income among tax jurisdictions. We recognize a tax benefit when it is more likely than not that our position will result in a tax deduction or credit. Unrecognized tax benefits of approximately $146 million as of June 30, 2020 decreased from $149 million as of December 31, 2019 . We are presently under audit by a number of tax authorities, and the Internal Revenue Service is currently reviewing our U.S. income tax returns for the tax years 2017 and 2018. The earliest tax year open to examination in jurisdictions where we have material operations is 2012. Management believes that we have sufficiently accrued liabilities as of June 30, 2020 for potential tax exposures. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities For additional information on our variable interest entities (VIEs), refer to pages 158 to 159 in Note 14 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, "Variable Interest Entities", in our 2019 Form 10-K. Tax Exempt Investment Program In the normal course of our business, we structure and sell certificated interests in pools of tax exempt investment grade assets, principally to our mutual fund clients. We structure these pools as partnership trusts, and the assets and liabilities of the trusts are recorded in our consolidated statement of condition as AFS investment securities and other short-term borrowings. As of June 30, 2020 and December 31, 2019 , we carried AFS investment securities, composed of securities related to state and political subdivisions, with a fair value of $0.87 billion and $0.94 billion , respectively, and other short-term borrowings of $0.77 billion and $0.82 billion , respectively, in our consolidated statement of condition in connection with these trusts. The interest income and interest expense generated by the investments and certificated interests, respectively, are recorded as components of NII when earned or incurred. The trusts had a weighted average life of approximately 2.6 years and 3.0 years as of June 30, 2020 and December 31, 2019 , respectively. Interests in Investment Funds As of June 30, 2020 , the aggregate assets and liabilities of our consolidated sponsored investment funds totaled $17 million and $4 million , respectively. As of December 31, 2019 , the aggregate assets and liabilities of our consolidated sponsored investment funds totaled $21 million and $5 million , respectively. As of June 30, 2020 and December 31, 2019 , our maximum total exposure associated with the consolidated sponsored investment funds totaled $13 million and $16 million , respectively, and represented the value of our economic ownership interest in the funds. We managed certain funds, considered VIEs, in which we held a variable interest but for which we were not deemed to be the primary beneficiary. Our potential maximum loss exposure related to these unconsolidated funds totaled $20 million as of June 30, 2020 and $21 million as of December 31, 2019 , and represented the carrying value of our investments, which are recorded in other assets in our consolidated statement of condition. The amount of loss we may recognize during any period is limited to the carrying amount of our investments in the unconsolidated funds. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Preferred Stock The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of June 30, 2020 : Preferred Stock (2) : Issuance Date Depositary Shares Issued Ownership Interest Per Depositary Share Liquidation Preference Per Share Liquidation Preference Per Depositary Share Per Annum Dividend Rate Dividend Payment Frequency Carrying Value as of June 30, 2020 Redemption Date (1) Series D February 2014 30,000,000 1/4,000th $ 100,000 $ 25 5.90% to but excluding March 15, 2024, then a floating rate equal to the three-month LIBOR plus 3.108% Quarterly $ 742 March 15, 2024 Series F May 2015 750,000 1/100th 100,000 1,000 5.25% to but excluding September 15, 2020, then a floating rate equal to the three-month LIBOR plus 3.597% Semi-annually 742 September 15, 2020 Series G April 2016 20,000,000 1/4,000th 100,000 25 5.35% to but excluding March 15, 2026, then a floating rate equal to the three-month LIBOR plus 3.709% Quarterly 493 March 15, 2026 Series H September 2018 500,000 1/100th 100,000 1,000 5.625% to but excluding December 15, 2023, then a floating rate equal to the three-month LIBOR plus 2.539% Semi-annually 494 December 15, 2023 (1) On the redemption date, or any dividend payment date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. (2) The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated: Three Months Ended June 30, 2020 2019 Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) (1) Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C (1) $ — $ — $ — $ 1,313 $ 0.33 $ 7 Series D 1,475 0.37 11 1,475 0.37 11 Series E (2) — — — 1,500 0.38 11 Series F — — — — — — Series G 1,338 0.33 7 1,338 0.33 7 Series H 28.13 28.13 14 2,813 28.13 14 Total $ 32 $ 50 Six Months Ended June 30, 2020 2019 (Dollars in millions, except per share amounts) Dividends Declared per Share Dividends Declared per Depositary Share Total Dividends Declared per Share Dividends Declared per Depositary Share Total Preferred Stock: Series C (1) $ 1,313 $ 0.33 $ 6 $ 2,626 $ 0.66 $ 13 Series D 2,950 0.74 22 2,950 0.74 22 Series E (2) — — — 3,000 0.76 22 Series F 2,625 26.25 20 2,625 26.25 20 Series G 2,676 0.66 14 2,676 0.66 14 Series H 2,813 28.13 14 2,813 28.13 14 Total $ 76 $ 105 (1 ) We redeemed all outstanding Series C non-cumulative perpetual preferred stock as of March 15, 2020 at a redemption price of $500 million ( $100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends. (2) We redeemed all outstanding Series E non-cumulative perpetual preferred stock as of December 15, 2019 at a redemption price of $750 million ( $100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends. In July 2020, we declared dividends in our Series D, F and G preferred stock of approximately $1,475 , $2,625 and $1,338 , respectively, per share, or approximately $0.37 , $26.25 and $0.33 , respectively, per depositary share. These dividends total approximately $11 million , $20 million and $7 million on our Series D, F and G preferred stock respectively, which will be paid in September 2020. Common Stock In June 2019, our Board approved a common stock purchase program authorizing the purchase of up to $2.0 billion of our common stock from July 1, 2019 through June 30, 2020 (the 2019 Program). On March 16, 2020, we, along with the other U.S. G-SIBs, suspended common share repurchases through the second quarter of 2020 to bolster capital in response to the COVID-19 pandemic. As a result, we had no repurchases of our common stock in the second quarter of 2020 under our common stock purchase program announced in June 2019. In June 2020, the Federal Reserve released results from the CCAR 2020 submission, which included limitations on all CCAR banks' ability to distribute capital during the third quarter of 2020, beyond common stock dividends at their current levels. In addition, all CCAR banks are required to resubmit their capital plan and stress test results based on a new scenario to be provided by the Federal Reserve. It is unclear at this time when the results of the new stress test will be available, whether they will impact our calculated SCB and our ability to execute a common share repurchase program in the fourth quarter of 2020. In June 2018, our Board approved a common stock purchase program authorizing the purchase of up to $1.2 billion of our common stock through June 30, 2019 (the 2018 Program). We repurchased $300 million of our common stock in each of the first and second quarters of 2019 under the 2018 Program. The table below presents the activity under our common stock purchase program during the periods indicated: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Shares Acquired Average Cost per Share Total Acquired Shares Acquired Average Cost per Share Total Acquired 2019 Program — $ — $ — 6.5 $ 77.35 $ 500 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Shares Acquired Average Cost per Share Total Acquired Shares Acquired Average Cost per Share Total Acquired 2018 Program 4.6 $ 65.25 $ 300 8.8 $ 67.97 $ 600 The table below presents the dividends declared on common stock for the periods indicated: Three Months Ended June 30, 2020 2019 Dividends Declared per Share Total Dividends Declared per Share Total Common Stock $ 0.52 $ 183 $ 0.47 $ 175 Six Months Ended June 30, 2020 2019 Dividends Declared per Share Total Dividends Declared per Share Total Common Stock $ 1.04 $ 366 $ 0.94 $ 352 Accumulated Other Comprehensive Income (Loss) The following table presents the after-tax components of AOCI as of the dates indicated: Six Months Ended June 30, (In millions) 2020 2019 Net unrealized (losses) on cash flow hedges $ 53 $ (70 ) Net unrealized gains on available-for-sale securities portfolio 899 372 Net unrealized gains related to reclassified available-for-sale securities 7 57 Net unrealized gains on available-for-sale securities 906 429 Net unrealized (losses) on available-for-sale securities designated in fair value hedges (40 ) (51 ) Net unrealized gains on hedges of net investments in non-U.S. subsidiaries 68 34 Non-credit impairment on held-to-maturity securities previously identified under ASC 320 (2 ) (2 ) Net unrealized (losses) on retirement plans (173 ) (179 ) Foreign currency translation (1,242 ) (1,035 ) Total $ (430 ) $ (874 ) The following table presents changes in AOCI by component, net of related taxes, for the periods indicated: (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Non-credit Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2019 $ (70 ) $ 409 $ 46 $ (2 ) $ (187 ) $ (1,072 ) $ (876 ) Other comprehensive income (loss) before reclassifications 103 456 22 — — (170 ) 411 Amounts reclassified into (out of) earnings 20 1 — — 14 — 35 Other comprehensive income (loss) 123 457 22 — 14 (170 ) 446 Balance as of June 30, 2020 $ 53 $ 866 $ 68 $ (2 ) $ (173 ) $ (1,242 ) $ (430 ) (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2018 $ (89 ) $ (175 ) $ 16 $ (2 ) $ (143 ) $ (963 ) $ (1,356 ) Other comprehensive income (loss) before reclassifications 18 532 21 2 — (5 ) 568 Reclassification of certain tax effects (1) (6 ) 21 (3 ) (1 ) (28 ) (67 ) (84 ) Amounts reclassified into (out of) earnings 7 — — (1 ) (8 ) — (2 ) Other comprehensive income (loss) 19 553 18 — (36 ) (72 ) 482 Balance as of June 30, 2019 $ (70 ) $ 378 $ 34 $ (2 ) $ (179 ) $ (1,035 ) $ (874 ) (1) Represents the reclassification from accumulated other comprehensive income into retained earnings as a result of our adoption of ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of 2019. The following table presents after-tax reclassifications into earnings for the periods indicated: Three Months Ended June 30, 2020 2019 (In millions) Amounts Reclassified into Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains from sales of available-for-sale securities, net of related taxes of zero and zero, respectively $ — $ — Net gains (losses) from sales of available-for-sale securities Cash flow hedges: Gain reclassified from accumulated other comprehensive income into Income, net of related taxes of $5 and $1 15 4 Net interest income reclassified from other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of zero and zero, respectively 2 — Compensation and employee benefits expenses Total reclassifications into AOCI $ 17 $ 4 Six Months Ended June 30, 2020 2019 (In millions) Amounts Reclassified into Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains (losses) from sales of available-for-sale securities, net of related taxes of $1 and zero, respectively $ 1 $ — Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Non-credit impairment on held-to-maturity securities previously identified under ASC 320, net of related taxes of zero and zero, respectively (1) — (1 ) Losses reclassified (from) to other comprehensive income Cash flow hedges: Gain reclassified from accumulated other comprehensive income into Income, net of related taxes of $7 and $3 20 7 Net interest income reclassified from other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of $4 and ($4), respectively 14 (8 ) Compensation and employee benefits expenses Total reclassifications (into) out of Accumulated other comprehensive loss $ 35 $ (2 ) (1) We adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326) : Measurement of Credit Losses on Financial Instruments, on January 1, 2020. Non-credit impairment on HTM securities was previously recognized under ASC 320. Please refer to Note 1 for additional information. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2020 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Regulatory Capital | Regulatory Capital For additional information on our regulatory capital, including the regulatory capital requirements administered by federal banking agencies, and to which we are subject, refer to page 162 in Note 16 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. As of June 30, 2020 , we and State Street Bank exceeded all regulatory capital adequacy requirements to which we were subject. As of June 30, 2020 , State Street Bank was categorized as “well capitalized” under the applicable regulatory capital adequacy framework, and exceeded all “well capitalized” ratio guidelines to which it was subject. Management believes that no conditions or events have occurred since June 30, 2020 that have changed the capital categorization of State Street Bank. The following table presents the regulatory capital structure, total RWA, related regulatory capital ratios and the minimum required regulatory capital ratios for us and State Street Bank, calculated under the advanced approaches and standardized approach provisions of the Basel III final rule as of the dates indicated : State Street Corporation State Street Bank (Dollars in millions) Basel III Advanced Approaches June 30, 2020 Basel III Standardized Approach June 30, 2020 Basel III Advanced Approaches December 31, 2019 Basel III Standardized Approach December 31, 2019 Basel III Advanced Approaches June 30, 2020 Basel III Standardized Approach June 30, 2020 Basel III Advanced Approaches December 31, 2019 Basel III Standardized Approach December 31, 2019 Common shareholders' equity: Common stock and related surplus $ 10,683 $ 10,683 $ 10,636 $ 10,636 $ 12,893 $ 12,893 $ 12,893 $ 12,893 Retained earnings 22,794 22,794 21,918 21,918 13,103 13,103 13,218 13,218 Accumulated other comprehensive income (loss) (430 ) (430 ) (870 ) (870 ) (174 ) (174 ) (654 ) (654 ) Treasury stock, at cost (10,645 ) (10,645 ) (10,209 ) (10,209 ) — — — — Total 22,402 22,402 21,475 21,475 25,822 25,822 25,457 25,457 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (8,973 ) (8,973 ) (9,112 ) (9,112 ) (8,705 ) (8,705 ) (8,839 ) (8,839 ) Other adjustments (1) (261 ) (261 ) (150 ) (150 ) (119 ) (119 ) (1 ) (1 ) Common equity tier 1 capital 13,168 13,168 12,213 12,213 16,998 16,998 16,617 16,617 Preferred stock 2,471 2,471 2,962 2,962 — — — — Tier 1 capital 15,639 15,639 15,175 15,175 16,998 16,998 16,617 16,617 Qualifying subordinated long-term debt 964 964 1,095 1,095 969 969 1,099 1,099 Allowance for credit losses 47 163 5 90 55 163 3 90 Total capital $ 16,650 $ 16,766 $ 16,275 $ 16,360 $ 18,022 $ 18,130 $ 17,719 $ 17,806 Risk-weighted assets: Credit risk (2) $ 57,975 $ 105,276 $ 54,763 $ 102,367 $ 54,016 $ 101,462 $ 51,610 $ 98,979 Operational risk (3) 44,225 NA 47,963 NA 43,738 NA 44,138 NA Market risk 1,563 1,563 1,638 1,638 1,563 1,563 1,638 1,638 Total risk-weighted assets $ 103,763 $ 106,839 $ 104,364 $ 104,005 $ 99,317 $ 103,025 $ 97,386 $ 100,617 Adjusted quarterly average assets $ 256,418 $ 256,418 $ 219,624 $ 219,624 $ 252,725 $ 252,725 $ 216,397 $ 216,397 Capital Ratios: 2020 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge 2019 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge Common equity tier 1 capital 8.0 % 8.5 % 12.7 % 12.3 % 11.7 % 11.7 % 17.1 % 16.5 % 17.1 % 16.5 % Tier 1 capital 9.5 10.0 15.1 14.6 14.5 14.6 17.1 16.5 17.1 16.5 Total capital 11.5 12.0 16.0 15.7 15.6 15.7 18.1 17.6 18.2 17.7 (1) Other adjustments within CET1 primarily include the overfunded portion of the firm’s defined benefit pension plan obligation net of associated deferred tax liabilities, disallowed deferred tax assets, and other required credit risk based deductions. (2) Includes a CVA which reflects the risk of potential fair value adjustments for credit risk reflected in our valuation of OTC derivative contracts. We used a simple CVA approach in conformity with the Basel III advanced approaches. (3) Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs. NA Not applicable |
Net Interest Income
Net Interest Income | 6 Months Ended |
Jun. 30, 2020 | |
Banking and Thrift, Interest [Abstract] | |
Net Interest Income | Net Interest Income The following table presents the components of interest income and interest expense, and related NII, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Interest income: Interest-bearing deposits with banks $ 4 $ 109 $ 85 $ 228 Investment securities: U.S. Treasury and federal agencies 315 360 671 729 State and political subdivisions 9 13 20 25 Other investments 92 126 209 248 Investment securities purchased under money market liquidity facility 70 — 78 — Total investment securities 486 499 978 1,002 Securities purchased under resale agreements 24 90 89 188 Loans 156 195 340 393 Other interest-earning assets 4 114 50 223 Total interest income 674 1,007 1,542 2,034 Interest expense: Interest-bearing deposits (54 ) 209 14 380 Investment securities purchased under money market liquidity facility 58 — 64 — Securities sold under repurchase agreements 1 8 3 20 Other short-term borrowings 5 6 15 10 Long-term debt 95 107 183 213 Other interest-bearing liabilities 10 64 40 125 Total interest expense 115 394 319 748 Net interest income $ 559 $ 613 $ 1,223 $ 1,286 |
Expenses
Expenses | 6 Months Ended |
Jun. 30, 2020 | |
Other Expenses [Abstract] | |
Expenses | Expenses The following table presents the components of other expenses for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Professional services $ 91 $ 85 $ 172 $ 165 Regulatory fees and assessments 17 16 29 36 Securities processing 15 19 30 28 Sales advertising public relations 12 27 30 54 Bank operations 4 10 13 21 Insurance 3 4 8 9 Other 101 113 191 236 Total other expenses $ 243 $ 274 $ 473 $ 549 Acquisition Costs We recorded approximately $12 million and $23 million of acquisition costs in the three and six months ended June 30, 2020 , respectively, compared to $10 million and $23 million in the same periods in 2019 , respectively, related to our acquisition of CRD. As we integrate CRD into our business, we expect to incur approximately $200 million of acquisition costs, including merger and integration costs, through 2021. Restructuring and Repositioning Charges The following table presents aggregate activity for repositioning charges and activity related to previous Beacon restructuring charges for the periods indicated: (In millions) Employee Real Estate Asset and Other Write-offs Total Accrual Balance at December 31, 2018 $ 303 $ 37 $ 1 $ 341 Accruals for Beacon (4 ) — — (4 ) Accruals for Repositioning Charges — — — — Payments and Other Adjustments (53 ) (25 ) — (78 ) Accrual balance at March 31, 2019 $ 246 $ 12 $ 1 $ 259 Accruals for Beacon 2 — — 2 Payments and Other Adjustments (51 ) (1 ) — (52 ) Accrual Balance at June 30, 2019 $ 197 $ 11 $ 1 $ 209 Accrual balance at December 31, 2019 $ 190 $ 7 $ 1 $ 198 Payments and Other Adjustments (33 ) (1 ) — (34 ) Accrual Balance at March 31, 2020 $ 157 $ 6 $ 1 $ 164 Payments and Other Adjustments (25 ) (1 ) — (26 ) Accrual Balance at June 30, 2020 $ 132 $ 5 $ 1 $ 138 |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share For additional information on our earnings per share calculation methodologies, refer to pages 169 to 170 in Note 23 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. The following table presents the computation of basic and diluted earnings per common share for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, except per share amounts) 2020 2019 2020 2019 Net income $ 694 $ 587 $ 1,328 $ 1,095 Less: Preferred stock dividends (32 ) (50 ) (85 ) (105 ) Dividends and undistributed earnings allocated to participating securities (1) — — (1 ) (1 ) Net income available to common shareholders $ 662 $ 537 $ 1,242 $ 989 Average common shares outstanding (In thousands): Basic average common shares 352,157 373,773 352,952 375,832 Effect of dilutive securities: equity-based awards 4,256 3,804 4,076 3,633 Diluted average common shares 356,413 377,577 357,028 379,465 Anti-dilutive securities (2) 2,989 3,345 1,580 2,665 Earnings per common share: Basic $ 1.88 $ 1.44 $ 3.52 $ 2.63 Diluted (3) 1.86 1.42 3.48 2.61 (1) Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP (Supplemental executive retirement plans) shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings. (2) Represents equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive. Additional information about equity-based awards is provided on pages 164 and 165 in Note 18 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. (3) Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method. |
Line of Business Information
Line of Business Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Line of Business Information | Line of Business Information Our operations are organized into two lines of business: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry. For information about our two lines of business, as well as revenues, expenses and capital allocation methodologies associated with them, refer to pages 170 to 171 in Note 24 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. The following is a summary of our line of business results for the periods indicated. The "Other" columns represent costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies. Three Months Ended June 30, Investment Investment Other Total (Dollars in millions) 2020 2019 2020 2019 2020 2019 2020 2019 Servicing fees $ 1,272 $ 1,252 $ — $ — $ — $ — $ 1,272 $ 1,252 Management fees — — 425 441 — — 425 441 Foreign exchange trading services 312 240 32 33 — — 344 273 Securities finance 88 122 4 4 — — 92 126 Software and processing fees 229 163 16 5 — — 245 168 Total fee revenue 1,901 1,777 477 483 — — 2,378 2,260 Net interest income 571 623 (12 ) (10 ) — — 559 613 Total revenue 2,472 2,400 465 473 — — 2,937 2,873 Provision for loan losses 52 1 — — — — 52 1 Total expenses 1,717 1,765 353 377 12 12 2,082 2,154 Income before income tax expense $ 703 $ 634 $ 112 $ 96 $ (12 ) $ (12 ) $ 803 $ 718 Pre-tax margin 28 % 26 % 24 % 20 % 27 % 25 % Six Months Ended June 30, Investment Investment Other Total (Dollars in millions) 2020 2019 2020 2019 2020 2019 2020 2019 Servicing fees $ 2,559 $ 2,503 $ — $ — $ — $ — $ 2,559 $ 2,503 Management fees — — 874 861 — — 874 861 Foreign exchange trading services 746 486 57 67 — — 803 553 Securities finance 177 239 7 5 — — 184 244 Software and processing fees 366 343 (9 ) 16 — — 357 359 Total fee revenue 3,848 3,571 929 949 — — 4,777 4,520 Net interest income 1,234 1,302 (11 ) (16 ) — — 1,223 1,286 Total other income 2 (1 ) — — — — 2 (1 ) Total revenue 5,084 4,872 918 933 — — 6,002 5,805 Provision for credit losses 88 5 — — — — 88 5 Total expenses 3,576 3,629 738 783 23 35 4,337 4,447 Income before income tax expense $ 1,420 $ 1,238 $ 180 $ 150 $ (23 ) $ (35 ) $ 1,577 $ 1,353 Pre-tax margin 28 % 25 % 20 % 16 % 26 % 23 % |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers For additional information on our revenue from contracts with customers, including revenues associated with both our Investment Servicing and Investment Management lines of business, refer to pages 172 to 173 in Note 25 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. Revenue by category In the following table, revenue is disaggregated by our two lines of business and by revenue stream for which the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended June 30, 2020 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2020 Servicing fees $ 1,272 $ — $ 1,272 $ — $ — $ — $ 1,272 Management fees — — — 425 — 425 425 Foreign exchange trading services 95 217 312 32 — 32 344 Securities finance 63 25 88 — 4 4 92 Software and processing fees 151 78 229 — 16 16 245 Total fee revenue 1,581 320 1,901 457 20 477 2,378 Net interest income — 571 571 — (12 ) (12 ) 559 Total revenue $ 1,581 $ 891 $ 2,472 $ 457 $ 8 $ 465 $ 2,937 Six Months Ended June 30, 2020 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2020 Servicing fees $ 2,559 $ — $ 2,559 $ — $ — $ — $ 2,559 Management fees — — — 874 — 874 874 Foreign exchange trading services 195 551 746 57 — 57 803 Securities finance 120 57 177 — 7 7 184 Software and processing fees 258 108 366 — (9 ) (9 ) 357 Total fee revenue 3,132 716 3,848 931 (2 ) 929 4,777 Net interest income — 1,234 1,234 — (11 ) (11 ) 1,223 Total other income — 2 2 — — — 2 Total revenue $ 3,132 $ 1,952 $ 5,084 $ 931 $ (13 ) $ 918 $ 6,002 Three Months Ended June 30, 2019 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2020 Servicing fees $ 1,252 $ — $ 1,252 $ — $ — $ — $ 1,252 Management fees — — — 441 — 441 441 Foreign exchange trading services 82 158 240 33 — 33 273 Securities finance 75 47 122 — 4 4 126 Software and processing fees 104 59 163 — 5 5 168 Total fee revenue 1,513 264 1,777 474 9 483 2,260 Net interest income — 623 623 — (10 ) (10 ) 613 Total revenue $ 1,513 $ 887 $ 2,400 $ 474 $ (1 ) $ 473 $ 2,873 Six Months Ended June 30, 2019 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2019 Servicing fees $ 2,503 $ — $ 2,503 $ — $ — $ — $ 2,503 Management fees — — — 861 — 861 861 Foreign exchange trading services 168 318 486 67 — 67 553 Securities finance 145 94 239 — 5 5 244 Software and processing fees 220 123 343 — 16 16 359 Total fee revenue 3,036 535 3,571 928 21 949 4,520 Net interest income — 1,302 1,302 — (16 ) (16 ) 1,286 Total other income — (1 ) (1 ) — — — (1 ) Total revenue $ 3,036 $ 1,836 $ 4,872 $ 928 $ 5 $ 933 $ 5,805 Contract balances and contract costs A s of June 30, 2020 and December 31, 2019 , net receivables of $2.83 billion and $2.77 billion , respectively, are included in accrued interest and fees receivable, representing amounts billed or currently billable related to revenue from contracts with customers. As performance obligations are satisfied, we have an unconditional right to payment and billing is generally performed monthly; therefore, we do not have significant contract assets or liabilities. No adjustments are made to the promised amount of consideration for the effects of a significant financing component as the period between when we transfer a promised service to a customer and when the customer pays for that service is expected to be one year or less. |
Non-U.S. Activities
Non-U.S. Activities | 6 Months Ended |
Jun. 30, 2020 | |
Segments, Geographical Areas [Abstract] | |
Non-U.S. Activities | Non-U.S. Activities We define our non-U.S. activities as those revenue-producing business activities that arise from clients which are generally serviced or managed outside the U.S. Due to the integrated nature of our business, precise segregation of our U.S. and non-U.S. activities is not possible. Subjective estimates, assumptions and other judgments are applied to quantify the financial results and assets related to our non-U.S. activities, including our application of funds transfer pricing, our asset and liability management policies and our allocation of certain indirect corporate expenses. Management periodically reviews and updates its processes for quantifying the financial results and assets related to our non-U.S. activities. The following table presents our U.S. and non-U.S. financial results for the periods indicated: Three Months Ended June 30, 2020 2019 (In millions) Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Total revenue $ 1,269 $ 1,668 $ 2,937 $ 1,290 $ 1,583 $ 2,873 Income before income tax expense 244 559 803 314 404 718 Six Months Ended June 30, 2020 2019 (In millions) Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Total revenue $ 2,629 $ 3,373 $ 6,002 $ 2,623 $ 3,182 $ 5,805 Income before income tax expense 514 1,063 1,577 616 737 1,353 (1) Geographic mix is generally based on the domicile of the entity servicing the funds and is not necessarily representative of the underlying asset mix. Non-U.S. assets were $94.29 billion and $85.94 billion as of June 30, 2020 and 2019 , respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the Parent Company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary is State Street Bank. The accompanying consolidated financial statements should be read in conjunction with the financial and risk factor information included in our 2019 Form 10-K, which we previously filed with the SEC. |
Consolidation | The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC. |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. These accounting estimates reflect the best judgment of management, but actual results could differ. |
Recent Accounting Developments | Recent Accounting Developments Relevant standards that were adopted in the first six months of 2020: In January 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as CECL methodology . This standard requires immediate recognition of expected credit losses for certain financial assets and off-balance sheet commitments, including trade and other receivables, loans and commitments, held-to-maturity debt securities, and other financial assets held at amortized cost at the reporting date, to be measured based on historical experience, current conditions, and reasonable and supportable forecasts. Credit losses on available-for-sale securities are recorded as an allowance against the amortized cost basis of the security, limited to the amount by which the security’s amortized cost basis exceeds the fair value, and reversal of impairment losses are allowed when the credit of the issuer improves. ASC 326 was adopted using a modified retrospective method of transition for all financial assets measured at amortized cost and off balance sheet commitments, which requires the impact of applying the standard on prior periods to be reflected in opening retained earnings upon adoption. Results for reporting periods beginning after January 1, 2020 are presented under the CECL methodology in ASC 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP. Additional information about the reporting for prior periods can be found in our 2019 Form 10-K filed with the SEC on February 20, 2020. The impact of transitioning to ASC 326 on the consolidated financial statements was an increase in the allowance for credit losses and a decrease in retained earnings of $3 million primarily arising from: • An increase of $1 million in the allowance for credit losses related to loans and other financial assets held at amortized cost. • An increase of $2 million in the allowance for credit losses related to off-balance sheet commitments In January 2020, we adopted the remaining provisions of ASU 2018-13 - Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value, specifically the provisions of the standard that add disclosures. We previously adopted the provisions of the standard that eliminated or amended disclosures as of December 31, 2018. There are no material impacts to the disclosures as a result of the adoption. In January 2020, we adopted ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. There are no material impacts to our financial statements as a result of the adoption. In January 2020, we adopted ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement. There are no material impacts to our financial statements as a result of the adoption. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting is effective as of March 12, 2020. The guidance provides temporary optional expedients and exceptions to the existing guidance in U.S. GAAP on contract modifications and hedge accounting in relation to the transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance also allows a one-time election to sell and/or reclassify to AFS or trading HTM debt securities that reference an interest rate affected by reference rate reform. There were no material impacts to our financial statements as a result of the adoption; we are evaluating the one-time election to sell/transfer HTM securities impacted by reference rate reform. |
Fair Value Measurements | Fair Value Measurements We carry trading account assets and liabilities, AFS debt securities, certain equity securities and various types of derivative financial instruments, at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders' equity in our consolidated statement of condition. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated: Fair Value Measurements on a Recurring Basis As of June 30, 2020 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 35 $ — $ — $ 35 Non-U.S. government securities 94 225 — 319 Other 17 512 — 529 Total trading account assets 146 737 — 883 Available-for-sale investment securities: U.S. Treasury and federal agencies: Direct obligations 5,804 — — 5,804 Mortgage-backed securities — 16,676 — 16,676 Total U.S. Treasury and federal agencies 5,804 16,676 — 22,480 Asset-backed securities: Student loans — 404 — 404 Credit cards — 90 — 90 Collateralized loan obligations — 50 1,869 1,919 Total asset-backed securities — 544 1,869 2,413 Non-U.S. debt securities: Mortgage-backed securities — 1,706 — 1,706 Asset-backed securities — 1,015 876 1,891 Government securities — 13,119 — 13,119 Other (2) — 10,017 45 10,062 Total non-U.S. debt securities — 25,857 921 26,778 State and political subdivisions — 1,723 — 1,723 Collateralized mortgage obligations — 90 — 90 Other U.S. debt securities — 2,747 — 2,747 Total available-for-sale investment securities 5,804 47,637 2,790 56,231 Other assets: Derivative instruments: Foreign exchange contracts 4 15,984 2 $ (11,254 ) 4,736 Interest rate contracts — 51 — (16 ) 35 Total derivative instruments 4 16,035 2 (11,270 ) 4,771 Other — 280 — — 280 Total assets carried at fair value $ 5,954 $ 64,689 $ 2,792 $ (11,270 ) $ 62,165 Liabilities: Accrued expenses and other liabilities: Trading account liabilities: Other $ 4 $ — $ — $ — $ 4 Derivative instruments: Foreign exchange contracts $ 5 $ 15,679 $ 1 $ (10,831 ) $ 4,854 Interest rate contracts 4 52 — (16 ) 40 Other derivative contracts — 185 — — 185 Total derivative instruments 9 15,916 1 (10,847 ) 5,079 Total liabilities carried at fair value $ 13 $ 15,916 $ 1 $ (10,847 ) $ 5,083 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $1.97 billion and $1.55 billion , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of June 30, 2020 , the fair value of other non-U.S. debt securities included $6.65 billion of supranational and non-U.S. agency bonds , $1.77 billion of corporate bonds and $0.48 billion of covered bonds. Fair Value Measurements on a Recurring Basis As of December 31, 2019 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 34 $ — $ — $ 34 Non-U.S. government securities 146 173 — 319 Other 21 540 — 561 Total trading account assets 201 713 — 914 Available-for-sale investment securities: U.S. Treasury and federal agencies: Direct obligations 3,487 — — 3,487 Mortgage-backed securities — 17,838 — 17,838 Total U.S. Treasury and federal agencies 3,487 17,838 — 21,325 Asset-backed securities: Student loans — 531 — 531 Credit cards — 89 — 89 Collateralized loan obligations — — 1,820 1,820 Total asset-backed securities — 620 1,820 2,440 Non-U.S. debt securities: Mortgage-backed securities — 1,980 — 1,980 Asset-backed securities — 1,292 887 2,179 Government securities — 12,373 — 12,373 Other (2) — 8,613 45 8,658 Total non-U.S. debt securities — 24,258 932 25,190 State and political subdivisions — 1,783 — 1,783 Collateralized mortgage obligations — 104 — 104 Other U.S. debt securities — 2,973 — 2,973 Total available-for-sale investment securities 3,487 47,576 2,752 53,815 Other assets: Derivative instruments: Foreign exchange contracts — 15,136 4 $ (10,391 ) 4,749 Interest rate contracts — 8 — (4 ) 4 Total derivative instruments — 15,144 4 (10,395 ) 4,753 Other — 504 — — 504 Total assets carried at fair value $ 3,688 $ 63,937 $ 2,756 $ (10,395 ) $ 59,986 Liabilities: Accrued expenses and other liabilities: Trading account liabilities: Other $ 5 $ — $ — $ — $ 5 Derivative instruments: Foreign exchange contracts $ 3 $ 15,144 $ 3 $ (8,918 ) $ 6,232 Interest rate contracts 6 43 — (4 ) 45 Other derivative contracts — 182 — — 182 Total derivative instruments 9 15,369 3 (8,922 ) 6,459 Total liabilities carried at fair value $ 14 $ 15,369 $ 3 $ (8,922 ) $ 6,464 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $2.31 billion and $0.84 billion , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2019 , the fair value of other non-U.S. debt securities included $5.50 billion of supranational and non-U.S. agency bonds , $1.78 billion of corporate bonds and $0.68 billion of covered bonds. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present activity related to our level 3 financial assets during the three and six months ended June 30, 2020 and 2019 , respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the three and six months ended June 30, 2020 , there were no transfers into and out of level 3. During the three and six months ended June 30, 2019 , transfers into level 3 were primarily related to collateralized loan obligations. During the three and six months ended June 30, 2019 , transfers out of level 3 were mainly related to certain non-U.S. debt securities, for which fair value was measured using prices for which observable market information, other than quoted prices included in Level 1, became available. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended June 30, 2020 Fair Total Realized and Purchases Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value (1) Change in Unrealized (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: Available-for-sale Investment securities: U.S. Treasury and federal agencies: Asset-backed securities: Collateralized loan obligations $ 1,841 $ — $ 59 $ 10 $ (19 ) $ (22 ) $ — $ — $ 1,869 Total asset-backed securities 1,841 — 59 10 (19 ) (22 ) — — 1,869 Non-U.S. debt securities: Asset-backed securities 820 — 55 1 — — — — 876 Other 44 — 1 — — — — — 45 Total non-U.S. debt securities 864 — 56 1 — — — — 921 Total available-for-sale investment securities 2,705 — 115 11 (19 ) (22 ) — — 2,790 Other assets: Derivative instruments: Foreign exchange contracts 17 (17 ) — 2 — — — — 2 $ (9 ) Total derivative instruments 17 (17 ) — 2 — — — — 2 (9 ) Total assets carried at fair value $ 2,722 $ (17 ) $ 115 $ 13 $ (19 ) $ (22 ) $ — $ — $ 2,792 $ (9 ) (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within f oreign exchange trading services. Fair Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2020 Fair Total Realized and Purchases Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value (1) Change in Unrealized (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: Available-for-sale Investment securities: Asset-backed securities: Collateralized loan obligations $ 1,820 $ — $ (24 ) $ 188 $ (61 ) $ (54 ) $ — $ — $ 1,869 Total asset-backed securities 1,820 — (24 ) 188 (61 ) (54 ) — — 1,869 Non-U.S. debt securities: Asset-backed securities 887 — (10 ) 1 — (2 ) — — 876 Other 45 — — — — — — — 45 Total non-U.S. debt securities 932 — (10 ) 1 — (2 ) — — 921 Total available-for-sale investment securities 2,752 — (34 ) 189 (61 ) (56 ) — — 2,790 Other assets: Derivative instruments: Foreign exchange contracts 4 (6 ) — 5 — (1 ) — — 2 $ (3 ) Total derivative instruments 4 (6 ) — 5 — (1 ) — — 2 (3 ) Total assets carried at fair value $ 2,756 $ (6 ) $ (34 ) $ 194 $ (61 ) $ (57 ) $ — $ — $ 2,792 $ (3 ) (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within f oreign exchange trading services. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended June 30, 2019 Fair Value as of Total Realized and Purchases Sales Settlements Transfers into Transfers Fair Value (1) Change in Unrealized Gains (Losses) Related to Financial Instruments (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: Available-for-sale Investment securities: U.S. Treasury and federal agencies: Mortgage-backed securities $ — $ — $ — $ 123 $ — $ — $ — $ — $ 123 Asset-backed securities: Collateralized loan obligations 668 — 2 455 — (119 ) 216 — 1,222 Total asset-backed securities 668 — 2 455 — (119 ) 216 — 1,222 Non-U.S. debt securities: Asset-backed securities 627 — 3 82 — 9 — — 721 Other 45 — — — — 1 — — 46 Total non-U.S. debt securities 672 — 3 82 — 10 — — 767 Total Available-for-sale investment securities 1,340 — 5 660 — (109 ) 216 — 2,112 Other assets: Derivative instruments: Foreign exchange contracts 4 (3 ) — 10 — — — — 11 $ (2 ) Total derivative instruments 4 (3 ) — 10 — — — — 11 (2 ) Total assets carried at fair value $ 1,344 $ (3 ) $ 5 $ 670 $ — $ (109 ) $ 216 $ — $ 2,123 $ (2 ) (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within foreign exchange trading services. Fair Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2019 Fair Value as of December 31, 2018 Total Realized and Purchases Sales Settlements Transfers Transfers Fair Value (1) Change in Unrealized Gains (Losses) Related to Financial Instruments (In millions) Recorded (1) Recorded (1) Assets: Available-for-sale Investment securities: U.S. Treasury and federal agencies: Mortgage-backed securities $ — $ — $ — $ 123 $ — $ — $ — $ — $ 123 Asset-backed securities: Collateralized loan obligations 593 1 — 587 — (175 ) 216 — 1,222 Total asset-backed securities 593 1 — 587 — (175 ) 216 — 1,222 Non-U.S. debt securities: Asset-backed securities 631 — 1 92 — (3 ) — — 721 Other 58 — — — — — — (12 ) 46 Total non-U.S. debt securities 689 — 1 92 — (3 ) — (12 ) 767 Collateralized mortgage obligations 2 — — — — (2 ) — — — Total Available-for-sale investment securities 1,284 1 1 802 — (180 ) 216 (12 ) 2,112 Other assets: Derivative instruments: Foreign exchange contracts 4 (5 ) — 12 — — — — 11 $ (2 ) Total derivative instruments 4 (5 ) — 12 — — — — 11 (2 ) Total assets carried at fair value $ 1,288 $ (4 ) $ 1 $ 814 $ — $ (180 ) $ 216 $ (12 ) $ 2,123 $ (2 ) (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within foreign exchange trading services. |
Fair Value Inputs, Quantitative Information | The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker/dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer. Quantitative Information about Level 3 Fair Value Measurements Fair Value Range Weighted-Average (Dollars in millions) As of June 30, 2020 As of December 31, 2019 Valuation Technique Significant Unobservable Input (1) As of June 30, 2020 As of June 30, 2020 As of December 31, 2019 Significant unobservable inputs readily available to State Street: Assets: Derivative Instruments, foreign exchange contracts $ 2 $ 4 Option model Volatility 6.3% - 13.9% 8.6 % 8.2 % Total $ 2 $ 4 Liabilities: Derivative instruments, foreign exchange contracts $ 1 $ 3 Option model Volatility 6.3% - 12.7% 8.9 % 7.0 % Total $ 1 $ 3 (1) Significant changes in these unobservable inputs may result in significant changes in fair value measurement of the derivative instrument. |
Carrying Value and Estimated Fair Value of Financial Instruments by Fair Value Hierarchy | The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value, as they would be categorized within the fair value hierarchy, as of the dates indicated: Fair Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) June 30, 2020 Financial Assets: Cash and due from banks $ 3,685 $ 3,685 $ 3,685 $ — $ — Interest-bearing deposits with banks 90,199 90,199 — 90,199 — Securities purchased under resale agreements 4,026 4,026 — 4,026 — HTM securities purchased under the MMLF program 11,257 11,294 — 11,294 — Investment securities held-to-maturity 41,848 43,037 8,288 34,344 405 Net loans (1) 26,719 26,583 — 24,511 2,072 Other (2) 2,502 2,502 — 2,502 — Financial Liabilities: Deposits: Non-interest-bearing $ 42,132 $ 42,132 $ — $ 42,132 $ — Interest-bearing - U.S. 87,197 87,197 — 87,197 — Interest-bearing - non-U.S. 71,133 71,133 — 71,133 — Securities sold under repurchase agreements 3,513 3,513 — 3,513 — Short-term borrowings under the MMLF program 11,261 11,261 — 11,261 — Other short-term borrowings 912 912 — 912 — Long-term debt 15,587 15,865 — 15,732 133 Other (2) 2,502 2,502 — 2,502 — (1) Includes $21 million of loans classified as held-for-sale that were measured at fair value in level 2 on a non-recurring basis as of June 30, 2020 . (2) Represents a portion of underlying client assets related to our enhanced custody business, which clients have allowed us to transfer and re-pledge. Fair Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) December 31, 2019 Financial Assets: Cash and due from banks $ 3,302 $ 3,302 $ 3,302 $ — $ — Interest-bearing deposits with banks 68,965 68,965 — 68,965 — Securities purchased under resale agreements 1,487 1,487 — 1,487 — Investment securities held-to-maturity 41,782 42,157 10,299 31,682 176 Net loans (1) 26,235 26,292 — 24,432 1,860 Other (2) 7,500 7,500 — 7,500 — Financial Liabilities: Deposits: Non-interest-bearing $ 34,031 $ 34,031 $ — $ 34,031 $ — Interest-bearing - U.S. 77,504 77,504 — 77,504 — Interest-bearing - non-U.S. 70,337 70,337 — 70,337 — Securities sold under repurchase agreements 1,102 1,102 — 1,102 — Other short-term borrowings 839 839 — 839 — Long-term debt 12,509 12,770 — 12,621 149 Other (2) 7,500 7,500 — 7,500 — (1) Includes $9 million of loans classified as held-for-sale that were measured at fair value in level 2 on a non-recurring basis as of December 31, 2019 . (2) Represents a portion of underlying client assets related to our enhanced custody business, which clients have allowed us to transfer and re-pledge. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | The following table presents the amortized cost, fair value and associated unrealized gains and losses of AFS and HTM investment securities as of the dates indicated: June 30, 2020 December 31, 2019 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value (In millions) Gains Losses Gains Losses Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 5,631 $ 173 $ — $ 5,804 $ 3,506 $ 9 $ 28 $ 3,487 Mortgage-backed securities 16,118 564 6 16,676 17,599 264 25 17,838 Total U.S. Treasury and federal agencies 21,749 737 6 22,480 21,105 273 53 21,325 Asset-backed securities: Student loans (1) 409 2 7 404 532 1 2 531 Credit cards 90 — — 90 90 — 1 89 Collateralized loan obligations 1,949 — 30 1,919 1,822 1 3 1,820 Total asset-backed securities 2,448 2 37 2,413 2,444 2 6 2,440 Non-U.S. debt securities: Mortgage-backed securities 1,714 — 8 1,706 1,978 3 1 1,980 Asset-backed securities 1,906 — 15 1,891 2,179 2 2 2,179 Government securities 12,964 162 7 13,119 12,243 131 1 12,373 Other (2) 9,935 135 8 10,062 8,595 73 10 8,658 Total non-U.S. debt securities 26,519 297 38 26,778 24,995 209 14 25,190 State and political subdivisions (3) 1,654 73 4 1,723 1,725 59 1 1,783 Collateralized mortgage obligations 89 1 — 90 104 — — 104 Other U.S. debt securities 2,685 63 1 2,747 2,941 32 — 2,973 Total $ 55,144 $ 1,173 $ 86 $ 56,231 $ 53,314 $ 575 $ 74 $ 53,815 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 8,179 $ 138 $ — $ 8,317 $ 10,311 $ 24 $ 3 $ 10,332 Mortgage-backed securities 28,204 1,079 7 29,276 26,297 316 44 26,569 Total U.S. Treasury and federal agencies 36,383 1,217 7 37,593 36,608 340 47 36,901 Asset-backed securities: Student loans (1) 4,148 8 104 4,052 3,783 10 41 3,752 Total asset-backed securities 4,148 8 104 4,052 3,783 10 41 3,752 Non-U.S. debt securities: Mortgage-backed securities 339 60 7 392 366 82 6 442 Government securities 393 — — 393 328 — — 328 Total non-U.S. debt securities 732 60 7 785 694 82 6 770 Collateralized mortgage obligations 585 28 6 607 697 38 1 734 Total (4) 41,848 1,313 124 43,037 41,782 470 95 42,157 HTM securities purchased under the MMLF program (5) 11,261 33 — 11,294 — — — — Total held-to-maturity securities $ 53,109 $ 1,346 $ 124 $ 54,331 $ 41,782 $ 470 $ 95 $ 42,157 (1) Primarily comprised of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans. (2) As of June 30, 2020 and December 31, 2019 , the fair value of other non-U.S. debt securities included $6.65 billion and $5.50 billion , respectively, primarily of supranational and non-U.S. agency bonds , $1.77 billion and $1.78 billion , respectively, of corporate bonds and $0.48 billion and $0.68 billion , respectively, of covered bonds. (3) As of June 30, 2020 and December 31, 2019 , the fair value of state and political subdivisions includes securities in trusts of $0.87 billion and $0.94 billion respectively. Additional information about these trusts is provided in Note 12. (4) An immaterial amount of a ccrued interest related to HTM and AFS investment securities was excluded from the amortized cost basis for the period ended June 30, 2020 . (5) As of June 30, 2020 , we recognized an allowance for credit losses of $4 million |
Schedule of Gross Pre-tax Unrealized Losses on Investment Securities | The following tables present the aggregate fair values of AFS investment securities that have been in a continuous unrealized loss position for less than 12 months , and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated: As of June 30, 2020 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 Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 350 $ — $ — $ — $ 350 $ — Mortgage-backed securities 1,001 5 124 1 1,125 6 Total U.S. Treasury and federal agencies 1,351 5 124 1 1,475 6 Asset-backed securities: Student loans 268 7 71 — 339 7 Credit cards — — — — — — Collateralized loan obligations 1,586 25 283 5 1,869 30 Total asset-backed securities 1,854 32 354 5 2,208 37 Non-U.S. debt securities: Mortgage-backed securities 1,246 6 206 2 1,452 8 Asset-backed securities 1,483 13 105 2 1,588 15 Government securities 1,145 7 — — 1,145 7 Other 856 7 747 1 1,603 8 Total non-U.S. debt securities 4,730 33 1,058 5 5,788 38 State and political subdivisions 344 3 22 1 366 4 Other U.S. debt securities 212 1 — — 212 1 Total $ 8,491 $ 74 $ 1,558 $ 12 $ 10,049 $ 86 As of December 31, 2019 Less than 12 months 12 months or longer Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 1,430 $ 28 $ — $ — $ 1,430 $ 28 Mortgage-backed securities 2,499 7 1,665 18 4,164 25 Total U.S. Treasury and federal agencies 3,929 35 1,665 18 5,594 53 Asset-backed securities: Student loans 271 1 127 1 398 2 Credit cards 89 1 — — 89 1 Collateralized loan obligations 862 2 278 1 1,140 3 Total asset-backed securities 1,222 4 405 2 1,627 6 Non-U.S. debt securities: Mortgage-backed securities 228 — 220 1 448 1 Asset-backed securities 672 1 109 1 781 2 Government securities 3,246 1 — — 3,246 1 Other 2,736 9 187 1 2,923 10 Total non-U.S. debt securities 6,882 11 516 3 7,398 14 State and political subdivisions 163 — 22 1 185 1 Collateralized mortgage obligations 13 — 4 — 17 — Other U.S. debt securities 219 — 14 — 233 — Total $ 12,428 $ 50 $ 2,626 $ 24 $ 15,054 $ 74 |
Investments Classified by Contractual Maturity Date | The following table presents the amortized cost and the fair value of contractual maturities of debt investment securities as of June 30, 2020 . The maturities of certain ABS, MBS and collateralized mortgage obligations are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties. As of June 30, 2020 (In millions) Under 1 Year 1 to 5 Years 6 to 10 Years Over 10 Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 1,560 $ 1,569 $ 2,022 $ 2,057 $ 2,049 $ 2,178 $ — $ — $ 5,631 $ 5,804 Mortgage-backed securities 199 206 706 726 2,639 2,672 12,574 13,072 16,118 16,676 Total U.S. Treasury and federal agencies 1,759 1,775 2,728 2,783 4,688 4,850 12,574 13,072 21,749 22,480 Asset-backed securities: Student loans 163 164 127 126 2 2 117 112 409 404 Credit cards — — — — 90 90 — — 90 90 Collateralized loan obligations 31 29 978 964 823 811 117 115 1,949 1,919 Total asset-backed securities 194 193 1,105 1,090 915 903 234 227 2,448 2,413 Non-U.S. debt securities: Mortgage-backed securities 252 251 550 546 130 129 782 780 1,714 1,706 Asset-backed securities 272 270 984 977 318 315 332 329 1,906 1,891 Government securities 4,690 4,694 7,339 7,488 689 693 246 244 12,964 13,119 Other 1,446 1,452 6,968 7,068 1,431 1,451 90 91 9,935 10,062 Total non-U.S. debt securities 6,660 6,667 15,841 16,079 2,568 2,588 1,450 1,444 26,519 26,778 State and political subdivisions 169 169 669 683 526 564 290 307 1,654 1,723 Collateralized mortgage obligations — — — — — — 89 90 89 90 Other U.S. debt securities 695 700 1,887 1,938 103 109 — — 2,685 2,747 Total $ 9,477 $ 9,504 $ 22,230 $ 22,573 $ 8,800 $ 9,014 $ 14,637 $ 15,140 $ 55,144 $ 56,231 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 3,310 $ 3,332 $ 4,840 $ 4,956 $ 5 $ 5 $ 24 $ 24 $ 8,179 $ 8,317 Mortgage-backed securities 61 63 545 557 3,716 3,898 23,882 24,758 28,204 29,276 Total U.S. Treasury and federal agencies 3,371 3,395 5,385 5,513 3,721 3,903 23,906 24,782 36,383 37,593 Asset-backed securities: Student loans 359 343 200 193 539 523 3,050 2,993 4,148 4,052 Total asset-backed securities 359 343 200 193 539 523 3,050 2,993 4,148 4,052 Non-U.S. debt securities: Mortgage-backed securities 117 112 27 27 3 3 192 250 339 392 Government securities 393 393 — — — — — — 393 393 Total non-U.S. debt securities 510 505 27 27 3 3 192 250 732 785 Collateralized mortgage obligations 149 157 274 273 5 5 157 172 585 607 Total 4,389 4,400 5,886 6,006 4,268 4,434 27,305 28,197 41,848 43,037 Held-to-maturity under money market mutual fund liquidity facility 11,261 11,294 — — — — — — 11,261 11,294 Total held-to-maturity securities $ 15,650 $ 15,694 $ 5,886 $ 6,006 $ 4,268 $ 4,434 $ 27,305 $ 28,197 $ 53,109 $ 54,331 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Net Loans | The following table presents our recorded investment in loans, by segment, as of the dates indicated: (In millions) June 30, 2020 December 31, 2019 Domestic (1) : Commercial and financial: Fund Finance (2) $ 9,696 $ 10,270 Leveraged loans 3,071 3,342 Overdrafts 2,292 1,739 Other (3) 2,450 3,411 Commercial real estate 1,944 1,766 Total domestic 19,453 20,528 Foreign (1) : Commercial and financial: Fund Finance (2) 3,986 3,145 Leveraged loans 1,230 1,119 Overdrafts 2,163 1,517 Other (3) 28 — Total foreign 7,407 5,781 Total loans 26,860 26,309 Allowance for loan losses (141 ) (74 ) Loans, net of allowance $ 26,719 $ 26,235 (1) Domestic and foreign categorization is based on the borrower’s country of domicile. (2) Fund finance loans include primarily $5,026 million loans to real money funds, $7,272 million private equity capital call finance loans and $820 million loans to business development companies as of June 30, 2020 , compared to $6,040 million loans to real money funds, $6,076 million private equity capital call finance loans and $932 million loans to business development companies as of December 31, 2019 . (3) Includes $1,448 million securities finance loans, $933 million loans to municipalities and $97 million other loans as of June 30, 2020 and $2,537 million securities finance loans, $848 million loans to municipalities and $26 million other loans as of December 31, 2019 . |
Amortized cost basis, by year of origination and credit quality indicator | The following tables present our recorded investment in each class of loans by credit quality indicator as of the dates indicated: June 30, 2020 Commercial and Financial Commercial Real Estate Total Loans (In millions) Investment grade $ 19,413 $ 1,777 $ 21,190 Speculative 5,449 167 5,616 Special mention 54 — 54 Total (1) $ 24,916 $ 1,944 $ 26,860 December 31, 2019 Commercial and Financial Commercial Real Estate Total Loans (In millions) Investment grade $ 19,501 $ 1,766 $ 21,267 Speculative 5,008 — 5,008 Special mention 25 — 25 Substandard 9 — 9 Total (1) $ 24,543 $ 1,766 $ 26,309 (1) Loans Include $4,455 million and $3,256 million of overdrafts as of June 30, 2020 and December 31, 2019 , respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. Financial assets held at amortized cost that are not loans are disaggregated based on product type. We assess credit risk based on the entire balance within fees receivable. Securities purchased under a resale agreement and securities-financing within our principal business utilized the collateral maintenance provisions included within ASC 326. An allowance for credit losses is recognized for any remaining exposure based on counterparty type. The allowance for credit losses for off-balance sheet credit exposures, recorded in accrued expenses and other liabilities in our consolidated statement of condition, represents management’s’ estimate of credit losses primarily in outstanding letters and lines of credit and other credit-enhancement facilities provided to our clients and outstanding as of the balance sheet date. The allowance is evaluated quarterly by management. Factors considered in evaluating the appropriate level of this allowance are similar to those considered with respect to the allowance for credit losses on financial assets held at amortized cost. Provisions to maintain the allowance at a level considered by us to be appropriate to absorb estimated credit losses in outstanding facilities are recorded in the provision for credit losses in our consolidated statement of income. The following table presents the amortized cost basis, by year of origination and credit quality indicator as of June 30, 2020 . For origination years before the fifth annual period, we present the aggregate amortized cost basis of loans. For purchased loans, the date of issuance is used to determine the year of origination, not the date of acquisition. For modified, extended or renewed lending arrangements, we evaluate whether a credit event has occurred which would consider the loan to be a new arrangement. (In millions) 2020 2019 2018 2017 2016 2015 Prior Revolving Loans Total (1)(2) Domestic loans: Commercial and financial: Risk Rating: Investment grade $ 2,478 $ 438 $ 5 $ 120 $ — $ — $ — $ 10,465 $ 13,506 Speculative 322 999 944 741 108 — — 835 3,949 Special mention — — 29 25 — — — — 54 Total commercial and financing $ 2,800 $ 1,437 $ 978 $ 886 $ 108 $ — $ — $ 11,300 $ 17,509 Commercial real estate: Risk Rating: Investment grade $ 178 $ 440 $ 654 $ 279 $ 197 $ 29 $ — $ — $ 1,777 Speculative — 110 57 — — — — — 167 Total commercial real estate $ 178 $ 550 $ 711 $ 279 $ 197 $ 29 $ — $ — $ 1,944 Non-U.S. loans: Commercial and financial: Risk Rating: Investment grade $ 2,001 $ — $ — $ — $ — $ — $ — $ 3,906 $ 5,907 Speculative 336 412 348 208 25 — 63 108 1,500 Total commercial and financing $ 2,337 $ 412 $ 348 $ 208 $ 25 $ — $ 63 $ 4,014 $ 7,407 Total loans $ 5,315 $ 2,399 $ 2,037 $ 1,373 $ 330 $ 29 $ 63 $ 15,314 $ 26,860 Off-balance sheet commitments and guarantees: Unfunded credit facilities $ — $ — $ — $ — $ — $ — $ — $ 33,126 $ 33,126 Indemnified securities financing 367,214 — — — — — — — 367,214 Standby letters of credit — — — — — — — 3,246 3,246 Total off-balance sheet commitments and guarantees $ 367,214 $ — $ — $ — $ — $ — $ — $ 36,372 $ 403,586 Total financing receivables and off-balance sheet commitments and guarantees $ 372,529 $ 2,399 $ 2,037 $ 1,373 $ 330 $ 29 $ 63 $ 51,686 $ 430,446 (1) Any reserve associated with accrued interest is not material. (2) As of June 30, 2020 , accrued interest receivable of $63 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table. |
Schedule of Activity in the Allowance for Loan Losses | The following table presents the activity in the allowance for credit losses by portfolio and class for the periods indicated: Three Months Ended June 30, 2020 Commercial and Financial (In millions) Leveraged Loans Other Loans Commercial Real Estate Off-Balance Sheet Commitments All Other (2) Total Credit Reserve Allowance for credit losses: Beginning balance $ 83 $ 10 $ 4 $ 22 $ 5 $ 124 Charge-offs (1) (14 ) — — — — (14 ) Provision 43 10 4 (4 ) (1 ) 52 FX translation 1 — — — — 1 Ending balance $ 113 $ 20 $ 8 $ 18 $ 4 $ 163 (1) Related to the sale of leveraged loans in the second quarter of 2020. (2) Includes the reserves on HTM investment securities. Six Months Ended June 30, 2020 Commercial and Financial (In millions) Leveraged Loans Other Loans Commercial Real Estate Off-Balance Sheet Commitments All Other (2) Total Credit Reserve Allowance for credit losses: Beginning balance $ 61 $ 10 $ 2 $ 19 $ 1 $ 93 Charge-offs (1) (19 ) — — — — (19 ) Provision 70 10 6 (1 ) 3 88 FX translation 1 — — — — 1 Ending balance $ 113 $ 20 $ 8 $ 18 $ 4 $ 163 (1) Primarily related to the sale of leveraged loans in the second quarter of 2020. (2) Includes the reserves on HTM investment securities. Allowance for Loan Losses under Incurred Loss Methodology for the period ended June 30, 2019 The following table presents activity in the allowance for loan losses as of June 30, 2019 under the incurred loss methodology: (In millions) Three months ended June 30, 2019 Allowance for loan losses: Beginning balance $ 70 Provision for credit losses (1) 1 Other (2) 1 Ending balance $ 72 (In millions) Six months ended June 30, 2019 Allowance for loan losses: Beginning balance $ 67 Provision for credit losses (1) 5 Ending balance $ 72 (1) The provisions for credit losses were primarily attributable to exposure to purchased leveraged loans to non-investment grade loans. (2) Consists primarily of FX translation. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In The Carrying Amount Of Goodwill | The following table presents changes in the carrying amount of goodwill during the periods indicated: (In millions) Investment Servicing (1) Investment Management Total Goodwill: Ending balance December 31, 2018 $ 7,180 $ 266 $ 7,446 Acquisitions (2) 122 — 122 Foreign currency translation (13 ) 1 (12 ) Ending balance December 31, 2019 $ 7,289 $ 267 $ 7,556 Foreign currency translation (16 ) (2 ) (18 ) Ending balance June 30, 2020 $ 7,273 $ 265 $ 7,538 (1) Investment Servicing includes our acquisition of CRD. (2) We completed the purchase price accounting for CRD as of March 31, 2019. Upon completion of valuation procedures related to the acquired assets and assumed liabilities, primarily the identifiable intangible assets, we recorded measurement period adjustments resulting in an increase in the goodwill of $113 million and a decrease of $93 million in intangible assets. |
Schedule of Finite-Lived Intangible Assets | The following table presents changes in the net carrying amount of other intangible assets during the periods indicated: (In millions) Investment Servicing (1) Investment Management Total Other intangible assets: Ending balance December 31, 2018 $ 2,218 $ 151 $ 2,369 Acquisitions (2) (93 ) — (93 ) Amortization (207 ) (29 ) (236 ) Foreign currency translation (10 ) — (10 ) Ending balance December 31, 2019 $ 1,908 $ 122 $ 2,030 Amortization (102 ) (14 ) (116 ) Ending balance June 30, 2020 $ 1,806 $ 108 $ 1,914 (1) Investment Servicing includes our acquisition of CRD. (2) We completed the purchase price accounting for CRD as of March 31, 2019. Upon completion of valuation procedures related to the acquired assets and assumed liabilities, primarily the identifiable intangible assets, we recorded measurement period adjustments resulting in a decrease in the fair value of intangible assets of $93 million in intangible assets with a corresponding increase to goodwill. The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated: June 30, 2020 Gross Accumulated Net (In millions) Other intangible assets: Client relationships $ 2,639 $ (1,329 ) $ 1,310 Technology 390 (92 ) 298 Core deposits 673 (398 ) 275 Other 100 (69 ) 31 Total $ 3,802 $ (1,888 ) $ 1,914 December 31, 2019 Gross Accumulated Net (In millions) Other intangible assets: Client relationships $ 3,104 $ (1,718 ) $ 1,386 Technology 403 (87 ) 316 Core deposits 673 (381 ) 292 Other 100 (64 ) 36 Total $ 4,280 $ (2,250 ) $ 2,030 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Assets [Abstract] | |
Components of Other Assets | The following table presents the components of other assets as of the dates indicated: (In millions) June 30, 2020 December 31, 2019 Securities borrowed (1) $ 13,035 $ 18,524 Derivative instruments, net 4,771 4,753 Bank-owned life insurance 3,442 3,395 Investments in joint ventures and other unconsolidated entities 2,696 2,899 Collateral, net 1,779 874 Receivable for securities settlement 1,368 336 Right-of-use assets 802 858 Accounts receivable 715 432 Prepaid expenses 446 395 Income taxes receivable 293 309 Deferred tax assets, net of valuation allowance (2) 199 216 Deposits with clearing organizations 58 58 Other (3) 891 962 Total $ 30,495 $ 34,011 (1) Refer to Note 8 , for further information on the impact of collateral on our financial statement presentation of securities borrowing and securities lending transactions. (2) Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction. (3) Consists primarily of advances for $0.60 billion and $0.67 billion as of June 30, 2020 and December 31, 2019, respectively. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments entered into in connection with our trading and asset-and-liability management activities as of the dates indicated: (In millions) June 30, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Interest-rate contracts: Futures $ 2,500 $ 4,368 Foreign exchange contracts: Forward, swap and spot 2,614,018 2,378,808 Options purchased 1,165 1,581 Options written 907 1,110 Futures 1,436 1,040 Other: Stable value contracts (1) 29,060 26,895 Deferred value awards (2) 426 389 Derivatives designated as hedging instruments: Interest-rate contracts: Swap agreements 15,929 15,196 Foreign exchange contracts: Forward and swap 5,516 3,176 (1) The notional value of the stable value contracts represents our maximum exposure. However, exposure to various stable value contracts is generally contractually limited to substantially lower amounts than the notional values. (2) Represents grants of deferred value awards to employees; refer to pages 147 to 148 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. |
Schedule of Derivative Assets at Fair Value | The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8 . Fair Value Derivative Assets (1) Derivative Liabilities (2) (In millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 15,974 $ 15,140 $ 15,547 $ 15,054 Other derivative contracts — — 185 182 Total $ 15,974 $ 15,140 $ 15,732 $ 15,236 Derivatives designated as hedging instruments: Foreign exchange contracts $ 16 $ — $ 138 $ 96 Interest-rate contracts 51 8 56 49 Total $ 67 $ 8 $ 194 $ 145 (1) Derivative assets are included within other assets in our consolidated statement of condition. (2) Derivative liabilities are included within accrued expenses and other liabilities in our consolidated statement of condition. |
Schedule of Derivative Liabilities at Fair Value | The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8 . Fair Value Derivative Assets (1) Derivative Liabilities (2) (In millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 15,974 $ 15,140 $ 15,547 $ 15,054 Other derivative contracts — — 185 182 Total $ 15,974 $ 15,140 $ 15,732 $ 15,236 Derivatives designated as hedging instruments: Foreign exchange contracts $ 16 $ — $ 138 $ 96 Interest-rate contracts 51 8 56 49 Total $ 67 $ 8 $ 194 $ 145 (1) Derivative assets are included within other assets in our consolidated statement of condition. (2) Derivative liabilities are included within accrued expenses and other liabilities in our consolidated statement of condition. |
Impact of Derivative Financial Instruments On Statement of Income | The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Derivatives not designated as hedging instruments: Foreign exchange contracts Foreign exchange trading services revenue $ 215 $ 156 $ 548 $ 316 Foreign exchange contracts Interest expense 17 (59 ) 19 (98 ) Interest rate contracts Foreign exchange trading services revenue — — 3 (1 ) Other derivative contracts Compensation and employee benefits (45 ) (46 ) (112 ) (120 ) Total $ 187 $ 51 $ 458 $ 97 The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Three Months Ended June 30, Three Months Ended June 30, 2020 2019 2020 2019 (In millions) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain Derivatives designated as fair value hedges: Interest rate contracts Net interest income $ 3 $ (8 ) Available-for-sale securities (1) Net interest income $ (4 ) $ 7 Interest rate contracts Net interest income 36 185 Long-term debt Net interest income (39 ) (183 ) Total $ 39 $ 177 $ (43 ) $ (176 ) Six Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In millions) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain Derivatives designated as fair value hedges: Interest rate contracts Net interest income (8 ) (11 ) Available-for-sale securities (2) Net interest income 6 11 Interest rate contracts Net interest income 583 291 Long-term debt Net interest income (574 ) (285 ) Total $ 575 $ 280 $ (568 ) $ (274 ) (1) In the three months ended June 30, 2020 , $3 million of net unrealized gains on AFS investment securities designated in fair value hedges was recognized in OCI compared to $5 million of net unrealized gains in the same period in 2019 . (2) In the six months ended June 30, 2020 , $4 million of net unrealized losses on AFS investment securities designated in fair value hedges was recognized in OCI compared to $3 million of net unrealized gains in the same period in 2019 . Three Months Ended June 30, Three Months Ended June 30, 2020 2019 2020 2019 (In millions) Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Derivatives designated as cash flow hedges: Interest rate contracts $ 21 $ 21 Net interest income $ 14 $ (2 ) Foreign exchange contracts 9 (15 ) Net interest income 7 7 Total derivatives designated as cash flow hedges $ 30 $ 6 $ 21 $ 5 Derivatives designated as net investment hedges: Foreign exchange contracts $ (86 ) $ (2 ) Gains (Losses) related to investment securities, net $ — $ — Total derivatives designated as net investment hedges (86 ) (2 ) — — Total $ (56 ) $ 4 $ 21 $ 5 Six Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In millions) Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Derivatives designated as cash flow hedges: Interest rate contracts $ 179 $ 31 Net interest income $ 14 $ (4 ) Foreign exchange contracts 19 12 Net interest income 14 14 Total derivatives designated as cash flow hedges $ 198 $ 43 $ 28 $ 10 Derivatives designated as net investment hedges: Foreign exchange contracts $ 22 $ 18 Gains (losses) related to investment securities, net $ — $ — Total derivatives designated as net investment hedges 22 18 — — Total $ 220 $ 61 $ 28 $ 10 |
Schedule of Outstanding Hedges: (Notional Amount) | The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships: June 30, 2020 Hedged Items Currently Designated Hedged Items No Longer Designated (1) (In millions) Carrying Amount of Assets and Liabilities Cumulative Hedge Accounting Basis Adjustments Carrying Amount of Assets and Liabilities Cumulative Hedge Accounting Basis Adjustments Long-term debt $ 10,515 $ 762 $ 1,200 $ (2 ) Available-for-sale securities 873 55 — — Total $ 11,388 $ 817 $ 1,200 $ (2 ) December 31, 2019 Hedged Items Currently Designated Hedged Items No Longer Designated (1) (In millions) Carrying Amount of Assets and Liabilities Cumulative Hedge Accounting Basis Adjustments Carrying Amount of Assets and Liabilities Cumulative Hedge Accounting Basis Adjustments Long-term debt $ 9,769 $ 164 $ 1,199 $ (8 ) Available-for-sale securities 940 49 — — Total $ 10,709 $ 213 $ 1,199 $ (8 ) (1) Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date. |
Offsetting Arrangements (Tables
Offsetting Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Offsetting [Abstract] | |
Offsetting Assets | The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated: Assets: June 30, 2020 Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 15,990 $ (9,285 ) $ 6,705 $ — $ 6,705 Interest rate contracts (6) 51 (16 ) 35 — 35 Cash collateral and securities netting NA (1,969 ) (1,969 ) (451 ) (2,420 ) Total derivatives 16,041 (11,270 ) 4,771 (451 ) 4,320 Other financial instruments: Resale agreements and securities borrowing (7)(8) 97,012 (79,951 ) 17,061 (15,367 ) 1,694 Total derivatives and other financial instruments $ 113,053 $ (91,221 ) $ 21,832 $ (15,818 ) $ 6,014 Assets: December 31, 2019 Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 15,140 $ (8,081 ) $ 7,059 $ — $ 7,059 Interest rate contracts (6) 8 (4 ) 4 — 4 Cash collateral and securities netting NA (2,310 ) (2,310 ) (685 ) (2,995 ) Total derivatives 15,148 (10,395 ) 4,753 (685 ) 4,068 Other financial instruments: Resale agreements and securities borrowing (7)(8) 179,989 (159,978 ) 20,011 (19,572 ) 439 Total derivatives and other financial instruments $ 195,137 $ (170,373 ) $ 24,764 $ (20,257 ) $ 4,507 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities in connection with our securities borrowing transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Variation margin payments presented as settlements rather than collateral. (7) Included in the $17.06 billion as of June 30, 2020 were $4.03 billion of resale agreements and $13.04 billion of collateral provided related to securities borrowing. Included in the $20.01 billion as of December 31, 2019 were $1.49 billion of resale agreements and $18.52 billion of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions. (8) Offsetting of resale agreements primarily relates to our involvement in FICC, where we settle transactions on a net basis for payment and delivery through the Fedwire system. NA Not applicable |
Offsetting Liabilities | The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated: Liabilities: June 30, 2020 Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 15,685 $ (9,285 ) $ 6,400 $ — $ 6,400 Interest rate contracts (6) 56 (16 ) 40 — 40 Other derivative contracts 185 — 185 — 185 Cash collateral and securities netting NA (1,546 ) (1,546 ) (571 ) (2,117 ) Total derivatives 15,926 (10,847 ) 5,079 (571 ) 4,508 Other financial instruments: Repurchase agreements and securities lending (7)(8) 89,465 (79,951 ) 9,514 (8,036 ) 1,478 Total derivatives and other financial instruments $ 105,391 $ (90,798 ) $ 14,593 $ (8,607 ) $ 5,986 Liabilities: December 31, 2019 Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 15,150 $ (8,081 ) $ 7,069 $ — $ 7,069 Interest rate contracts (6) 49 (4 ) 45 — 45 Other derivative contracts 182 — 182 — 182 Cash collateral and securities netting NA (837 ) (837 ) (557 ) (1,394 ) Total derivatives 15,381 (8,922 ) 6,459 (557 ) 5,902 Other financial instruments: Repurchase agreements and securities lending (7)(8) 171,853 (159,977 ) 11,876 (10,793 ) 1,083 Total derivatives and other financial instruments $ 187,234 $ (168,899 ) $ 18,335 $ (11,350 ) $ 6,985 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities provided in connection with our securities lending transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Variation margin payments presented as settlements rather than collateral. (7) Included in the $9.51 billion as of June 30, 2020 were $3.51 billion of repurchase agreements and $6.00 billion of collateral received related to securities lending transactions. Included in the $11.88 billion as of December 31, 2019 were $1.10 billion of repurchase agreements and $10.77 billion of collateral received related to securities lending transactions. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilit ies, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions . (8) Offsetting of repurchase agreements primarily relates to our involvement in FICC, where we settle transactions on a net basis for payment and delivery through the Fedwire system. NA Not applicable |
Securities Sold and Securities Loaned Under Repurchase Agreements | The following table summarizes our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated: As of June 30, 2020 As of December 31, 2019 (In millions) Overnight and Continuous Up to 30 Days Greater than 90 Days Total Overnight and Continuous Up to 30 Days Greater than 90 Days Total Repurchase agreements: U.S. Treasury and agency securities $ 79,585 $ — $ — $ 79,585 $ 156,465 $ — $ — $ 156,465 Total 79,585 — — 79,585 156,465 — — 156,465 Securities lending transactions: US Treasury and agency securities 23 — — 23 15 — — 15 Corporate debt securities 143 — — 143 354 — — 354 Equity securities 6,509 35 668 7,212 7,389 — 130 7,519 Other (1) 2,502 — — 2,502 7,500 — — 7,500 Total 9,177 35 668 9,880 15,258 — 130 15,388 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 88,762 $ 35 $ 668 $ 89,465 $ 171,723 $ — $ 130 $ 171,853 (1) Represents a security interest in underlying client assets related to our enhanced custody business, which assets clients have allowed us to transfer and re-pledge. |
Commitments and Guarantees (Tab
Commitments and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | The following table presents the aggregate gross contractual amounts of our off-balance sheet commitments and off-balance sheet guarantees as of the dates indicated: (In millions) June 30, 2020 December 31, 2019 Commitments: Unfunded credit facilities (1) $ 33,126 $ 29,697 Guarantees (2) : Indemnified securities financing $ 367,214 $ 367,901 Standby letters of credit 3,246 3,324 (1) As of June 30, 2020 , approximately 73% of our unfunded commitments to extend credit expire within one year. (2) The potential losses associated with these guarantees equal the gross contractual amounts and do not consider the value of any collateral or reflect any participations to independent third parties. |
Schedule of Repurchase Agreements | The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated: (In millions) June 30, 2020 December 31, 2019 Fair value of indemnified securities financing $ 367,214 $ 367,901 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 384,761 385,428 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 53,273 45,658 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 56,829 48,887 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Preferred Shares | The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of June 30, 2020 : Preferred Stock (2) : Issuance Date Depositary Shares Issued Ownership Interest Per Depositary Share Liquidation Preference Per Share Liquidation Preference Per Depositary Share Per Annum Dividend Rate Dividend Payment Frequency Carrying Value as of June 30, 2020 Redemption Date (1) Series D February 2014 30,000,000 1/4,000th $ 100,000 $ 25 5.90% to but excluding March 15, 2024, then a floating rate equal to the three-month LIBOR plus 3.108% Quarterly $ 742 March 15, 2024 Series F May 2015 750,000 1/100th 100,000 1,000 5.25% to but excluding September 15, 2020, then a floating rate equal to the three-month LIBOR plus 3.597% Semi-annually 742 September 15, 2020 Series G April 2016 20,000,000 1/4,000th 100,000 25 5.35% to but excluding March 15, 2026, then a floating rate equal to the three-month LIBOR plus 3.709% Quarterly 493 March 15, 2026 Series H September 2018 500,000 1/100th 100,000 1,000 5.625% to but excluding December 15, 2023, then a floating rate equal to the three-month LIBOR plus 2.539% Semi-annually 494 December 15, 2023 (1) On the redemption date, or any dividend payment date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. (2) The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. |
Dividends Declared | The table below presents the dividends declared on common stock for the periods indicated: Three Months Ended June 30, 2020 2019 Dividends Declared per Share Total Dividends Declared per Share Total Common Stock $ 0.52 $ 183 $ 0.47 $ 175 Six Months Ended June 30, 2020 2019 Dividends Declared per Share Total Dividends Declared per Share Total Common Stock $ 1.04 $ 366 $ 0.94 $ 352 The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated: Three Months Ended June 30, 2020 2019 Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) (1) Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C (1) $ — $ — $ — $ 1,313 $ 0.33 $ 7 Series D 1,475 0.37 11 1,475 0.37 11 Series E (2) — — — 1,500 0.38 11 Series F — — — — — — Series G 1,338 0.33 7 1,338 0.33 7 Series H 28.13 28.13 14 2,813 28.13 14 Total $ 32 $ 50 Six Months Ended June 30, 2020 2019 (Dollars in millions, except per share amounts) Dividends Declared per Share Dividends Declared per Depositary Share Total Dividends Declared per Share Dividends Declared per Depositary Share Total Preferred Stock: Series C (1) $ 1,313 $ 0.33 $ 6 $ 2,626 $ 0.66 $ 13 Series D 2,950 0.74 22 2,950 0.74 22 Series E (2) — — — 3,000 0.76 22 Series F 2,625 26.25 20 2,625 26.25 20 Series G 2,676 0.66 14 2,676 0.66 14 Series H 2,813 28.13 14 2,813 28.13 14 Total $ 76 $ 105 (1 ) We redeemed all outstanding Series C non-cumulative perpetual preferred stock as of March 15, 2020 at a redemption price of $500 million ( $100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends. (2) We redeemed all outstanding Series E non-cumulative perpetual preferred stock as of December 15, 2019 at a redemption price of $750 million ( $100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends. |
Stock Repurchase Program | The table below presents the activity under our common stock purchase program during the periods indicated: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Shares Acquired Average Cost per Share Total Acquired Shares Acquired Average Cost per Share Total Acquired 2019 Program — $ — $ — 6.5 $ 77.35 $ 500 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Shares Acquired Average Cost per Share Total Acquired Shares Acquired Average Cost per Share Total Acquired 2018 Program 4.6 $ 65.25 $ 300 8.8 $ 67.97 $ 600 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the after-tax components of AOCI as of the dates indicated: Six Months Ended June 30, (In millions) 2020 2019 Net unrealized (losses) on cash flow hedges $ 53 $ (70 ) Net unrealized gains on available-for-sale securities portfolio 899 372 Net unrealized gains related to reclassified available-for-sale securities 7 57 Net unrealized gains on available-for-sale securities 906 429 Net unrealized (losses) on available-for-sale securities designated in fair value hedges (40 ) (51 ) Net unrealized gains on hedges of net investments in non-U.S. subsidiaries 68 34 Non-credit impairment on held-to-maturity securities previously identified under ASC 320 (2 ) (2 ) Net unrealized (losses) on retirement plans (173 ) (179 ) Foreign currency translation (1,242 ) (1,035 ) Total $ (430 ) $ (874 ) The following table presents changes in AOCI by component, net of related taxes, for the periods indicated: (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Non-credit Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2019 $ (70 ) $ 409 $ 46 $ (2 ) $ (187 ) $ (1,072 ) $ (876 ) Other comprehensive income (loss) before reclassifications 103 456 22 — — (170 ) 411 Amounts reclassified into (out of) earnings 20 1 — — 14 — 35 Other comprehensive income (loss) 123 457 22 — 14 (170 ) 446 Balance as of June 30, 2020 $ 53 $ 866 $ 68 $ (2 ) $ (173 ) $ (1,242 ) $ (430 ) (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2018 $ (89 ) $ (175 ) $ 16 $ (2 ) $ (143 ) $ (963 ) $ (1,356 ) Other comprehensive income (loss) before reclassifications 18 532 21 2 — (5 ) 568 Reclassification of certain tax effects (1) (6 ) 21 (3 ) (1 ) (28 ) (67 ) (84 ) Amounts reclassified into (out of) earnings 7 — — (1 ) (8 ) — (2 ) Other comprehensive income (loss) 19 553 18 — (36 ) (72 ) 482 Balance as of June 30, 2019 $ (70 ) $ 378 $ 34 $ (2 ) $ (179 ) $ (1,035 ) $ (874 ) (1) Represents the reclassification from accumulated other comprehensive income into retained earnings as a result of our adoption of ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of 2019. |
Schedule of Reclassifications Out of AOCI | The following table presents after-tax reclassifications into earnings for the periods indicated: Three Months Ended June 30, 2020 2019 (In millions) Amounts Reclassified into Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains from sales of available-for-sale securities, net of related taxes of zero and zero, respectively $ — $ — Net gains (losses) from sales of available-for-sale securities Cash flow hedges: Gain reclassified from accumulated other comprehensive income into Income, net of related taxes of $5 and $1 15 4 Net interest income reclassified from other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of zero and zero, respectively 2 — Compensation and employee benefits expenses Total reclassifications into AOCI $ 17 $ 4 Six Months Ended June 30, 2020 2019 (In millions) Amounts Reclassified into Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains (losses) from sales of available-for-sale securities, net of related taxes of $1 and zero, respectively $ 1 $ — Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Non-credit impairment on held-to-maturity securities previously identified under ASC 320, net of related taxes of zero and zero, respectively (1) — (1 ) Losses reclassified (from) to other comprehensive income Cash flow hedges: Gain reclassified from accumulated other comprehensive income into Income, net of related taxes of $7 and $3 20 7 Net interest income reclassified from other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of $4 and ($4), respectively 14 (8 ) Compensation and employee benefits expenses Total reclassifications (into) out of Accumulated other comprehensive loss $ 35 $ (2 ) (1) We adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326) : Measurement of Credit Losses on Financial Instruments, on January 1, 2020. Non-credit impairment on HTM securities was previously recognized under ASC 320. Please refer to Note 1 for additional information. |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Schedule of Regulatory Capital | The following table presents the regulatory capital structure, total RWA, related regulatory capital ratios and the minimum required regulatory capital ratios for us and State Street Bank, calculated under the advanced approaches and standardized approach provisions of the Basel III final rule as of the dates indicated : State Street Corporation State Street Bank (Dollars in millions) Basel III Advanced Approaches June 30, 2020 Basel III Standardized Approach June 30, 2020 Basel III Advanced Approaches December 31, 2019 Basel III Standardized Approach December 31, 2019 Basel III Advanced Approaches June 30, 2020 Basel III Standardized Approach June 30, 2020 Basel III Advanced Approaches December 31, 2019 Basel III Standardized Approach December 31, 2019 Common shareholders' equity: Common stock and related surplus $ 10,683 $ 10,683 $ 10,636 $ 10,636 $ 12,893 $ 12,893 $ 12,893 $ 12,893 Retained earnings 22,794 22,794 21,918 21,918 13,103 13,103 13,218 13,218 Accumulated other comprehensive income (loss) (430 ) (430 ) (870 ) (870 ) (174 ) (174 ) (654 ) (654 ) Treasury stock, at cost (10,645 ) (10,645 ) (10,209 ) (10,209 ) — — — — Total 22,402 22,402 21,475 21,475 25,822 25,822 25,457 25,457 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (8,973 ) (8,973 ) (9,112 ) (9,112 ) (8,705 ) (8,705 ) (8,839 ) (8,839 ) Other adjustments (1) (261 ) (261 ) (150 ) (150 ) (119 ) (119 ) (1 ) (1 ) Common equity tier 1 capital 13,168 13,168 12,213 12,213 16,998 16,998 16,617 16,617 Preferred stock 2,471 2,471 2,962 2,962 — — — — Tier 1 capital 15,639 15,639 15,175 15,175 16,998 16,998 16,617 16,617 Qualifying subordinated long-term debt 964 964 1,095 1,095 969 969 1,099 1,099 Allowance for credit losses 47 163 5 90 55 163 3 90 Total capital $ 16,650 $ 16,766 $ 16,275 $ 16,360 $ 18,022 $ 18,130 $ 17,719 $ 17,806 Risk-weighted assets: Credit risk (2) $ 57,975 $ 105,276 $ 54,763 $ 102,367 $ 54,016 $ 101,462 $ 51,610 $ 98,979 Operational risk (3) 44,225 NA 47,963 NA 43,738 NA 44,138 NA Market risk 1,563 1,563 1,638 1,638 1,563 1,563 1,638 1,638 Total risk-weighted assets $ 103,763 $ 106,839 $ 104,364 $ 104,005 $ 99,317 $ 103,025 $ 97,386 $ 100,617 Adjusted quarterly average assets $ 256,418 $ 256,418 $ 219,624 $ 219,624 $ 252,725 $ 252,725 $ 216,397 $ 216,397 Capital Ratios: 2020 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge 2019 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge Common equity tier 1 capital 8.0 % 8.5 % 12.7 % 12.3 % 11.7 % 11.7 % 17.1 % 16.5 % 17.1 % 16.5 % Tier 1 capital 9.5 10.0 15.1 14.6 14.5 14.6 17.1 16.5 17.1 16.5 Total capital 11.5 12.0 16.0 15.7 15.6 15.7 18.1 17.6 18.2 17.7 (1) Other adjustments within CET1 primarily include the overfunded portion of the firm’s defined benefit pension plan obligation net of associated deferred tax liabilities, disallowed deferred tax assets, and other required credit risk based deductions. (2) Includes a CVA which reflects the risk of potential fair value adjustments for credit risk reflected in our valuation of OTC derivative contracts. We used a simple CVA approach in conformity with the Basel III advanced approaches. (3) Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs. NA Not applicable |
Net Interest Income (Tables)
Net Interest Income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Banking and Thrift, Interest [Abstract] | |
Components of Interest Revenue and Interest Expense | The following table presents the components of interest income and interest expense, and related NII, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Interest income: Interest-bearing deposits with banks $ 4 $ 109 $ 85 $ 228 Investment securities: U.S. Treasury and federal agencies 315 360 671 729 State and political subdivisions 9 13 20 25 Other investments 92 126 209 248 Investment securities purchased under money market liquidity facility 70 — 78 — Total investment securities 486 499 978 1,002 Securities purchased under resale agreements 24 90 89 188 Loans 156 195 340 393 Other interest-earning assets 4 114 50 223 Total interest income 674 1,007 1,542 2,034 Interest expense: Interest-bearing deposits (54 ) 209 14 380 Investment securities purchased under money market liquidity facility 58 — 64 — Securities sold under repurchase agreements 1 8 3 20 Other short-term borrowings 5 6 15 10 Long-term debt 95 107 183 213 Other interest-bearing liabilities 10 64 40 125 Total interest expense 115 394 319 748 Net interest income $ 559 $ 613 $ 1,223 $ 1,286 |
Expenses (Tables)
Expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Expenses [Abstract] | |
Schedule of Expenses | The following table presents the components of other expenses for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Professional services $ 91 $ 85 $ 172 $ 165 Regulatory fees and assessments 17 16 29 36 Securities processing 15 19 30 28 Sales advertising public relations 12 27 30 54 Bank operations 4 10 13 21 Insurance 3 4 8 9 Other 101 113 191 236 Total other expenses $ 243 $ 274 $ 473 $ 549 |
Restructuring and Related Costs | The following table presents aggregate activity for repositioning charges and activity related to previous Beacon restructuring charges for the periods indicated: (In millions) Employee Real Estate Asset and Other Write-offs Total Accrual Balance at December 31, 2018 $ 303 $ 37 $ 1 $ 341 Accruals for Beacon (4 ) — — (4 ) Accruals for Repositioning Charges — — — — Payments and Other Adjustments (53 ) (25 ) — (78 ) Accrual balance at March 31, 2019 $ 246 $ 12 $ 1 $ 259 Accruals for Beacon 2 — — 2 Payments and Other Adjustments (51 ) (1 ) — (52 ) Accrual Balance at June 30, 2019 $ 197 $ 11 $ 1 $ 209 Accrual balance at December 31, 2019 $ 190 $ 7 $ 1 $ 198 Payments and Other Adjustments (33 ) (1 ) — (34 ) Accrual Balance at March 31, 2020 $ 157 $ 6 $ 1 $ 164 Payments and Other Adjustments (25 ) (1 ) — (26 ) Accrual Balance at June 30, 2020 $ 132 $ 5 $ 1 $ 138 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per common share for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, except per share amounts) 2020 2019 2020 2019 Net income $ 694 $ 587 $ 1,328 $ 1,095 Less: Preferred stock dividends (32 ) (50 ) (85 ) (105 ) Dividends and undistributed earnings allocated to participating securities (1) — — (1 ) (1 ) Net income available to common shareholders $ 662 $ 537 $ 1,242 $ 989 Average common shares outstanding (In thousands): Basic average common shares 352,157 373,773 352,952 375,832 Effect of dilutive securities: equity-based awards 4,256 3,804 4,076 3,633 Diluted average common shares 356,413 377,577 357,028 379,465 Anti-dilutive securities (2) 2,989 3,345 1,580 2,665 Earnings per common share: Basic $ 1.88 $ 1.44 $ 3.52 $ 2.63 Diluted (3) 1.86 1.42 3.48 2.61 (1) Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP (Supplemental executive retirement plans) shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings. (2) Represents equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive. Additional information about equity-based awards is provided on pages 164 and 165 in Note 18 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 Form 10-K. (3) Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method. |
Line of Business Information (T
Line of Business Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of Line of Business Results | The following is a summary of our line of business results for the periods indicated. The "Other" columns represent costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies. Three Months Ended June 30, Investment Investment Other Total (Dollars in millions) 2020 2019 2020 2019 2020 2019 2020 2019 Servicing fees $ 1,272 $ 1,252 $ — $ — $ — $ — $ 1,272 $ 1,252 Management fees — — 425 441 — — 425 441 Foreign exchange trading services 312 240 32 33 — — 344 273 Securities finance 88 122 4 4 — — 92 126 Software and processing fees 229 163 16 5 — — 245 168 Total fee revenue 1,901 1,777 477 483 — — 2,378 2,260 Net interest income 571 623 (12 ) (10 ) — — 559 613 Total revenue 2,472 2,400 465 473 — — 2,937 2,873 Provision for loan losses 52 1 — — — — 52 1 Total expenses 1,717 1,765 353 377 12 12 2,082 2,154 Income before income tax expense $ 703 $ 634 $ 112 $ 96 $ (12 ) $ (12 ) $ 803 $ 718 Pre-tax margin 28 % 26 % 24 % 20 % 27 % 25 % Six Months Ended June 30, Investment Investment Other Total (Dollars in millions) 2020 2019 2020 2019 2020 2019 2020 2019 Servicing fees $ 2,559 $ 2,503 $ — $ — $ — $ — $ 2,559 $ 2,503 Management fees — — 874 861 — — 874 861 Foreign exchange trading services 746 486 57 67 — — 803 553 Securities finance 177 239 7 5 — — 184 244 Software and processing fees 366 343 (9 ) 16 — — 357 359 Total fee revenue 3,848 3,571 929 949 — — 4,777 4,520 Net interest income 1,234 1,302 (11 ) (16 ) — — 1,223 1,286 Total other income 2 (1 ) — — — — 2 (1 ) Total revenue 5,084 4,872 918 933 — — 6,002 5,805 Provision for credit losses 88 5 — — — — 88 5 Total expenses 3,576 3,629 738 783 23 35 4,337 4,447 Income before income tax expense $ 1,420 $ 1,238 $ 180 $ 150 $ (23 ) $ (35 ) $ 1,577 $ 1,353 Pre-tax margin 28 % 25 % 20 % 16 % 26 % 23 % |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | In the following table, revenue is disaggregated by our two lines of business and by revenue stream for which the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended June 30, 2020 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2020 Servicing fees $ 1,272 $ — $ 1,272 $ — $ — $ — $ 1,272 Management fees — — — 425 — 425 425 Foreign exchange trading services 95 217 312 32 — 32 344 Securities finance 63 25 88 — 4 4 92 Software and processing fees 151 78 229 — 16 16 245 Total fee revenue 1,581 320 1,901 457 20 477 2,378 Net interest income — 571 571 — (12 ) (12 ) 559 Total revenue $ 1,581 $ 891 $ 2,472 $ 457 $ 8 $ 465 $ 2,937 Six Months Ended June 30, 2020 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2020 Servicing fees $ 2,559 $ — $ 2,559 $ — $ — $ — $ 2,559 Management fees — — — 874 — 874 874 Foreign exchange trading services 195 551 746 57 — 57 803 Securities finance 120 57 177 — 7 7 184 Software and processing fees 258 108 366 — (9 ) (9 ) 357 Total fee revenue 3,132 716 3,848 931 (2 ) 929 4,777 Net interest income — 1,234 1,234 — (11 ) (11 ) 1,223 Total other income — 2 2 — — — 2 Total revenue $ 3,132 $ 1,952 $ 5,084 $ 931 $ (13 ) $ 918 $ 6,002 Three Months Ended June 30, 2019 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2020 Servicing fees $ 1,252 $ — $ 1,252 $ — $ — $ — $ 1,252 Management fees — — — 441 — 441 441 Foreign exchange trading services 82 158 240 33 — 33 273 Securities finance 75 47 122 — 4 4 126 Software and processing fees 104 59 163 — 5 5 168 Total fee revenue 1,513 264 1,777 474 9 483 2,260 Net interest income — 623 623 — (10 ) (10 ) 613 Total revenue $ 1,513 $ 887 $ 2,400 $ 474 $ (1 ) $ 473 $ 2,873 Six Months Ended June 30, 2019 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2019 Servicing fees $ 2,503 $ — $ 2,503 $ — $ — $ — $ 2,503 Management fees — — — 861 — 861 861 Foreign exchange trading services 168 318 486 67 — 67 553 Securities finance 145 94 239 — 5 5 244 Software and processing fees 220 123 343 — 16 16 359 Total fee revenue 3,036 535 3,571 928 21 949 4,520 Net interest income — 1,302 1,302 — (16 ) (16 ) 1,286 Total other income — (1 ) (1 ) — — — (1 ) Total revenue $ 3,036 $ 1,836 $ 4,872 $ 928 $ 5 $ 933 $ 5,805 |
Non-U.S. Activities (Tables)
Non-U.S. Activities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Results from Non-U.S. Operations | The following table presents our U.S. and non-U.S. financial results for the periods indicated: Three Months Ended June 30, 2020 2019 (In millions) Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Total revenue $ 1,269 $ 1,668 $ 2,937 $ 1,290 $ 1,583 $ 2,873 Income before income tax expense 244 559 803 314 404 718 Six Months Ended June 30, 2020 2019 (In millions) Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Total revenue $ 2,629 $ 3,373 $ 6,002 $ 2,623 $ 3,182 $ 5,805 Income before income tax expense 514 1,063 1,577 616 737 1,353 (1) Geographic mix is generally based on the domicile of the entity servicing the funds and is not necessarily representative of the underlying asset mix. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - New Accounting Pronouncement (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Decrease in retained earnings | $ 24,873 | $ 24,431 | |||||
Loans, allowance for losses | $ 141 | $ 74 | $ 72 | $ 70 | $ 67 | ||
Loans and Other Financial Assets Held at Amortized Cost | Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Loans, allowance for losses | $ 1 | ||||||
Off-Balance Sheet Commitments | Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Loans, allowance for losses | $ 2 | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Decrease in retained earnings | $ (3) |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | $ 883 | $ 914 |
Investment securities available-for-sale | 56,231 | 53,815 |
Derivative assets | 4,771 | 4,753 |
Derivative asset, collateral, cash offset | 1,969 | 2,310 |
Derivative liability, collateral, cash offset | 1,546 | 837 |
Non-US debt securities, supranational and non US agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,650 | 5,500 |
Non-U.S. debt securities, corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,770 | 1,780 |
Non-US debt securities, covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 480 | 680 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 883 | 914 |
Investment securities available-for-sale | 56,231 | 53,815 |
Derivative asset, Impact of Netting | (11,270) | (10,395) |
Derivative assets | 4,771 | 4,753 |
Other | 280 | 504 |
Other assets - impact of netting | 0 | 0 |
Total, derivative asset | 62,165 | 59,986 |
Derivative liability, Impact of Netting | (10,847) | (8,922) |
Derivative liabilities | 5,079 | 6,459 |
Total liabilities carried at fair value | 5,083 | 6,464 |
Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | (11,254) | (10,391) |
Derivative assets | 4,736 | 4,749 |
Derivative liability, Impact of Netting | (10,831) | (8,918) |
Derivative liabilities | 4,854 | 6,232 |
Recurring | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | (16) | (4) |
Derivative assets | 35 | 4 |
Derivative liability, Impact of Netting | (16) | (4) |
Derivative liabilities | 40 | 45 |
Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, Impact of Netting | 0 | 0 |
Derivative liabilities | 185 | 182 |
Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 35 | 34 |
Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 319 | 319 |
Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 529 | 561 |
Investment securities available-for-sale | 2,747 | 2,973 |
Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 5,804 | 3,487 |
Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 16,676 | 17,838 |
Recurring | Total U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 22,480 | 21,325 |
Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 404 | 531 |
Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 90 | 89 |
Recurring | Asset-backed securities, collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,919 | 1,820 |
Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,413 | 2,440 |
Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,706 | 1,980 |
Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,891 | 2,179 |
Recurring | Non-U.S. debt securities, government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 13,119 | 12,373 |
Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 10,062 | 8,658 |
Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 26,778 | 25,190 |
Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,723 | 1,783 |
Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 90 | 104 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 146 | 201 |
Investment securities available-for-sale | 5,804 | 3,487 |
Derivative asset | 4 | 0 |
Other | 0 | 0 |
Total, derivative asset | 5,954 | 3,688 |
Derivative liability | 9 | 9 |
Total liabilities carried at fair value | 13 | 14 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 4 | 0 |
Derivative liability | 5 | 3 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 4 | 6 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 35 | 34 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 94 | 146 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 17 | 21 |
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 5,804 | 3,487 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 5,804 | 3,487 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 737 | 713 |
Investment securities available-for-sale | 47,637 | 47,576 |
Derivative asset | 16,035 | 15,144 |
Other | 280 | 504 |
Total, derivative asset | 64,689 | 63,937 |
Derivative liability | 15,916 | 15,369 |
Total liabilities carried at fair value | 15,916 | 15,369 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 15,984 | 15,136 |
Derivative liability | 15,679 | 15,144 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 51 | 8 |
Derivative liability | 52 | 43 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 185 | 182 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 225 | 173 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 512 | 540 |
Investment securities available-for-sale | 2,747 | 2,973 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 16,676 | 17,838 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 16,676 | 17,838 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 404 | 531 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 90 | 89 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 50 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 544 | 620 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,706 | 1,980 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,015 | 1,292 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 13,119 | 12,373 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 10,017 | 8,613 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 25,857 | 24,258 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,723 | 1,783 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 90 | 104 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Investment securities available-for-sale | 2,790 | 2,752 |
Derivative asset | 2 | 4 |
Other | 0 | 0 |
Total, derivative asset | 2,792 | 2,756 |
Derivative liability | 1 | 3 |
Total liabilities carried at fair value | 1 | 3 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 2 | 4 |
Derivative liability | 1 | 3 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,869 | 1,820 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,869 | 1,820 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 876 | 887 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 45 | 45 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 921 | 932 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Other | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liability | 4 | 5 |
Other | Quoted Market Prices in Active Markets (Level 1) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liability | 4 | 5 |
Other | Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liability | 0 | 0 |
Other | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liability | 0 | 0 |
Trading liability, Impact of Netting | $ 0 | $ 0 |
Fair Value - Schedule of Fair_2
Fair Value - Schedule of Fair Value Measurements, Assets, Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | $ 2,722 | $ 1,344 | $ 2,756 | $ 1,288 |
Total realized and unrealized gain (losses) recorded in revenue | (17) | (3) | (6) | (4) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 115 | 5 | (34) | 1 |
Purchases | 13 | 670 | 194 | 814 |
Sales | (19) | 0 | (61) | 0 |
Settlements | (22) | (109) | (57) | (180) |
Transfers into Level 3 | 0 | 216 | 0 | 216 |
Transfers out of Level 3 | 0 | 0 | 0 | (12) |
Fair value, end of period | 2,792 | 2,123 | 2,792 | 2,123 |
Change in unrealized gains (losses) related to financial instruments held | (9) | (2) | (3) | (2) |
Derivative instruments, assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 17 | 4 | 4 | 4 |
Total realized and unrealized gain (losses) recorded in revenue | (17) | (3) | (6) | (5) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 2 | 10 | 5 | 12 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | (1) | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair value, end of period | 2 | 11 | 2 | 11 |
Change in unrealized gains (losses) related to financial instruments held | (9) | (2) | (3) | (2) |
Foreign exchange contracts | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 17 | 4 | 4 | 4 |
Total realized and unrealized gain (losses) recorded in revenue | (17) | (3) | (6) | (5) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 2 | 10 | 5 | 12 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | (1) | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair value, end of period | 2 | 11 | 2 | 11 |
Change in unrealized gains (losses) related to financial instruments held | (9) | (2) | (3) | (2) |
US Treasury and federal agencies, mortgage-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 0 | 0 | ||
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | ||
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | ||
Purchases | 123 | 123 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair value, end of period | 123 | 123 | ||
Asset-backed securities, collateralized loan obligations | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 1,841 | 668 | 1,820 | 593 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | 0 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 59 | 2 | (24) | 0 |
Purchases | 10 | 455 | 188 | 587 |
Sales | (19) | 0 | (61) | 0 |
Settlements | (22) | (119) | (54) | (175) |
Transfers into Level 3 | 0 | 216 | 0 | 216 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair value, end of period | 1,869 | 1,222 | 1,869 | 1,222 |
Asset-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 1,841 | 668 | 1,820 | 593 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | 0 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 59 | 2 | (24) | 0 |
Purchases | 10 | 455 | 188 | 587 |
Sales | (19) | 0 | (61) | 0 |
Settlements | (22) | (119) | (54) | (175) |
Transfers into Level 3 | 0 | 216 | 0 | 216 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair value, end of period | 1,869 | 1,222 | 1,869 | 1,222 |
Non-U.S. debt securities, asset-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 820 | 627 | 887 | 631 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 55 | 3 | (10) | 1 |
Purchases | 1 | 82 | 1 | 92 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 9 | (2) | (3) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair value, end of period | 876 | 721 | 876 | 721 |
Non-U.S. debt securities, other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 44 | 45 | 45 | 58 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 1 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 1 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | (12) |
Fair value, end of period | 45 | 46 | 45 | 46 |
Total non-U.S. debt securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 864 | 672 | 932 | 689 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 56 | 3 | (10) | 1 |
Purchases | 1 | 82 | 1 | 92 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 10 | (2) | (3) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | (12) |
Fair value, end of period | 921 | 767 | 921 | 767 |
Collateralized mortgage obligations | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 2 | |||
Total realized and unrealized gain (losses) recorded in revenue | 0 | |||
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | |||
Purchases | 0 | |||
Sales | 0 | |||
Settlements | (2) | |||
Transfers into Level 3 | 0 | |||
Transfers out of Level 3 | 0 | |||
Fair value, end of period | 0 | 0 | ||
Investment securities available-for-sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 2,705 | 1,340 | 2,752 | 1,284 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | 0 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 115 | 5 | (34) | 1 |
Purchases | 11 | 660 | 189 | 802 |
Sales | (19) | 0 | (61) | 0 |
Settlements | (22) | (109) | (56) | (180) |
Transfers into Level 3 | 0 | 216 | 0 | 216 |
Transfers out of Level 3 | 0 | 0 | 0 | (12) |
Fair value, end of period | $ 2,790 | $ 2,112 | $ 2,790 | $ 2,112 |
Fair Value - Fair Value Inputs,
Fair Value - Fair Value Inputs, Assets and Liabilities, Quantitative Information (Details) - Pricing Methods with Significant Unobservable Market Inputs (Level 3) $ in Millions | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Volatility | Option model | Derivative instruments, liabilities | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative asset, measurement input | 0.063 | |
Volatility | Option model | Derivative instruments, liabilities | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative asset, measurement input | 0.127 | |
Volatility | Option model | Derivative instruments, liabilities | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative liability, measurement input | 0.089 | 0.070 |
Volatility | Option model | Derivative instruments, assets | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative asset, measurement input | 0.063 | |
Volatility | Option model | Derivative instruments, assets | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative asset, measurement input | 0.139 | |
Volatility | Option model | Derivative instruments, assets | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative asset, measurement input | 0.086 | 0.082 |
Significant Unobservable Inputs Readily Available | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Total, derivative asset | $ 2 | $ 4 |
Total liabilities carried at fair value | 1 | 3 |
Significant Unobservable Inputs Readily Available | Derivative instruments, liabilities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative instruments, foreign exchange contracts, derivative asset | 1 | 3 |
Significant Unobservable Inputs Readily Available | Derivative instruments, assets | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative instruments, foreign exchange contracts, derivative asset | $ 2 | $ 4 |
Fair Value - Carrying Value and
Fair Value - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Financial Assets: | ||
Cash and due from banks | $ 3,685 | $ 3,302 |
Interest-bearing deposits with banks | 90,199 | 68,965 |
Securities purchased under resale agreements | 4,026 | 1,487 |
Investment securities held-to-maturity | 43,037 | 42,157 |
Financial Liabilities: | ||
Non-interest-bearing | 42,132 | 34,031 |
Interest-bearing - U.S. | 87,197 | 77,504 |
Interest-bearing - non-U.S. | 71,133 | 70,337 |
Securities sold under repurchase agreements | 3,513 | 1,102 |
Other short-term borrowings | 912 | 839 |
Reported Amount | ||
Financial Assets: | ||
Cash and due from banks | 3,685 | 3,302 |
Interest-bearing deposits with banks | 90,199 | 68,965 |
Securities purchased under resale agreements | 4,026 | 1,487 |
Investment securities held-to-maturity | 41,848 | 41,782 |
Net loans (excluding leases) | 26,719 | 26,235 |
Other | 2,502 | 7,500 |
Financial Liabilities: | ||
Non-interest-bearing | 42,132 | 34,031 |
Interest-bearing - U.S. | 87,197 | 77,504 |
Interest-bearing - non-U.S. | 71,133 | 70,337 |
Securities sold under repurchase agreements | 3,513 | 1,102 |
Other short-term borrowings | 912 | 839 |
Long-term debt | 15,587 | 12,509 |
Other | 2,502 | 7,500 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 3,685 | 3,302 |
Interest-bearing deposits with banks | 90,199 | 68,965 |
Securities purchased under resale agreements | 4,026 | 1,487 |
Investment securities held-to-maturity | 43,037 | 42,157 |
Net loans (excluding leases) | 26,583 | 26,292 |
Other | 2,502 | 7,500 |
Financial Liabilities: | ||
Non-interest-bearing | 42,132 | 34,031 |
Interest-bearing - U.S. | 87,197 | 77,504 |
Interest-bearing - non-U.S. | 71,133 | 70,337 |
Securities sold under repurchase agreements | 3,513 | 1,102 |
Other short-term borrowings | 912 | 839 |
Long-term debt | 15,865 | 12,770 |
Other | 2,502 | 7,500 |
Estimated Fair Value | Nonrecurring Measurement Basis | ||
Financial Assets: | ||
Net loans (excluding leases) | 21 | 9 |
Estimated Fair Value | Quoted Market Prices in Active Markets (Level 1) | ||
Financial Assets: | ||
Cash and due from banks | 3,685 | 3,302 |
Interest-bearing deposits with banks | 0 | 0 |
Securities purchased under resale agreements | 0 | 0 |
Investment securities held-to-maturity | 8,288 | 10,299 |
Net loans (excluding leases) | 0 | 0 |
Other | 0 | 0 |
Financial Liabilities: | ||
Non-interest-bearing | 0 | 0 |
Interest-bearing - U.S. | 0 | 0 |
Interest-bearing - non-U.S. | 0 | 0 |
Securities sold under repurchase agreements | 0 | 0 |
Other short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Other | 0 | 0 |
Estimated Fair Value | Pricing Methods with Significant Observable Market Inputs (Level 2) | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 90,199 | 68,965 |
Securities purchased under resale agreements | 4,026 | 1,487 |
Investment securities held-to-maturity | 34,344 | 31,682 |
Net loans (excluding leases) | 24,511 | 24,432 |
Other | 2,502 | 7,500 |
Financial Liabilities: | ||
Non-interest-bearing | 42,132 | 34,031 |
Interest-bearing - U.S. | 87,197 | 77,504 |
Interest-bearing - non-U.S. | 71,133 | 70,337 |
Securities sold under repurchase agreements | 3,513 | 1,102 |
Other short-term borrowings | 912 | 839 |
Long-term debt | 15,732 | 12,621 |
Other | 2,502 | 7,500 |
Estimated Fair Value | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Securities purchased under resale agreements | 0 | 0 |
Investment securities held-to-maturity | 405 | 176 |
Net loans (excluding leases) | 2,072 | 1,860 |
Other | 0 | 0 |
Financial Liabilities: | ||
Non-interest-bearing | 0 | 0 |
Interest-bearing - U.S. | 0 | 0 |
Interest-bearing - non-U.S. | 0 | 0 |
Securities sold under repurchase agreements | 0 | 0 |
Other short-term borrowings | 0 | 0 |
Long-term debt | 133 | 149 |
Other | 0 | $ 0 |
Held to Maturity Under MMLF | Reported Amount | ||
Financial Assets: | ||
Investment securities held-to-maturity | 11,257 | |
Held to Maturity Under MMLF | Estimated Fair Value | ||
Financial Assets: | ||
Investment securities held-to-maturity | 11,294 | |
Held to Maturity Under MMLF | Estimated Fair Value | Quoted Market Prices in Active Markets (Level 1) | ||
Financial Assets: | ||
Investment securities held-to-maturity | 0 | |
Held to Maturity Under MMLF | Estimated Fair Value | Pricing Methods with Significant Observable Market Inputs (Level 2) | ||
Financial Assets: | ||
Investment securities held-to-maturity | 11,294 | |
Held to Maturity Under MMLF | Estimated Fair Value | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | ||
Financial Assets: | ||
Investment securities held-to-maturity | 0 | |
Short Term Borrowings Under MMLF | Reported Amount | ||
Financial Liabilities: | ||
Other short-term borrowings | 11,261 | |
Short Term Borrowings Under MMLF | Estimated Fair Value | ||
Financial Liabilities: | ||
Other short-term borrowings | 11,261 | |
Short Term Borrowings Under MMLF | Estimated Fair Value | Quoted Market Prices in Active Markets (Level 1) | ||
Financial Liabilities: | ||
Other short-term borrowings | 0 | |
Short Term Borrowings Under MMLF | Estimated Fair Value | Pricing Methods with Significant Observable Market Inputs (Level 2) | ||
Financial Liabilities: | ||
Other short-term borrowings | 11,261 | |
Short Term Borrowings Under MMLF | Estimated Fair Value | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | ||
Financial Liabilities: | ||
Other short-term borrowings | $ 0 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($)security | Jun. 30, 2019USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||||
Investment securities held to maturity purchased | $ 11,257,000,000 | $ 11,257,000,000 | $ 29,000,000,000 | $ 0 | |
Allowance for credit losses | 4,000,000 | 4,000,000 | |||
Pledged securities not separately reported | $ 52,730,000,000 | $ 52,730,000,000 | $ 49,480,000,000 | ||
Percentage of investment portfolio considered investment grade | 99.00% | 99.00% | |||
Debt securities, held-to-maturity, allowance for credit loss | $ 4,000,000 | $ 4,000,000 | |||
HTM securities writeoff | $ 0 | ||||
HTM securities provision | 4,000,000 | ||||
Losses from other-than-temporary impairment | 1,000,000 | $ 1,000,000 | |||
Gross pre-tax unrealized losses | $ 210,000,000 | ||||
Number of securities in loss position | security | 632 |
Investment Securities - Schedul
Investment Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | $ 55,144 | $ 53,314 |
Available for sale, gross unrealized gains | 1,173 | 575 |
Available for sale, gross unrealized losses | 86 | 74 |
Available-for-sale, fair value | 56,231 | 53,815 |
Held to maturity, amortized cost | 41,848 | 41,782 |
Investment securities held-to-maturity | 43,037 | 42,157 |
Investment securities related to state and political subdivisions | 870 | 940 |
US Treasury and federal agencies, direct obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 5,631 | 3,506 |
Available for sale, gross unrealized gains | 173 | 9 |
Available for sale, gross unrealized losses | 0 | 28 |
Available-for-sale, fair value | 5,804 | 3,487 |
Held to maturity, amortized cost | 8,179 | 10,311 |
Held to maturity, gross unrealized gains | 138 | 24 |
Held to maturity, gross unrealized losses | 0 | 3 |
Investment securities held-to-maturity | 8,317 | 10,332 |
US Treasury and federal agencies, mortgage-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 16,118 | 17,599 |
Available for sale, gross unrealized gains | 564 | 264 |
Available for sale, gross unrealized losses | 6 | 25 |
Available-for-sale, fair value | 16,676 | 17,838 |
Held to maturity, amortized cost | 28,204 | 26,297 |
Held to maturity, gross unrealized gains | 1,079 | 316 |
Held to maturity, gross unrealized losses | 7 | 44 |
Investment securities held-to-maturity | 29,276 | 26,569 |
Total U.S. Treasury and federal agencies | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 21,749 | 21,105 |
Available for sale, gross unrealized gains | 737 | 273 |
Available for sale, gross unrealized losses | 6 | 53 |
Available-for-sale, fair value | 22,480 | 21,325 |
Held to maturity, amortized cost | 36,383 | 36,608 |
Held to maturity, gross unrealized gains | 1,217 | 340 |
Held to maturity, gross unrealized losses | 7 | 47 |
Investment securities held-to-maturity | 37,593 | 36,901 |
Asset-backed securities, student loans | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 409 | 532 |
Available for sale, gross unrealized gains | 2 | 1 |
Available for sale, gross unrealized losses | 7 | 2 |
Available-for-sale, fair value | 404 | 531 |
Held to maturity, amortized cost | 4,148 | 3,783 |
Held to maturity, gross unrealized gains | 8 | 10 |
Held to maturity, gross unrealized losses | 104 | 41 |
Investment securities held-to-maturity | 4,052 | 3,752 |
Asset-backed securities, credit cards | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 90 | 90 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | 0 | 1 |
Available-for-sale, fair value | 90 | 89 |
Asset-backed securities, collateralized loan obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,949 | 1,822 |
Available for sale, gross unrealized gains | 0 | 1 |
Available for sale, gross unrealized losses | 30 | 3 |
Available-for-sale, fair value | 1,919 | 1,820 |
Total asset-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 2,448 | 2,444 |
Available for sale, gross unrealized gains | 2 | 2 |
Available for sale, gross unrealized losses | 37 | 6 |
Available-for-sale, fair value | 2,413 | 2,440 |
Held to maturity, amortized cost | 4,148 | 3,783 |
Held to maturity, gross unrealized gains | 8 | 10 |
Held to maturity, gross unrealized losses | 104 | 41 |
Investment securities held-to-maturity | 4,052 | 3,752 |
Non-U.S. debt securities, mortgage-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,714 | 1,978 |
Available for sale, gross unrealized gains | 0 | 3 |
Available for sale, gross unrealized losses | 8 | 1 |
Available-for-sale, fair value | 1,706 | 1,980 |
Held to maturity, amortized cost | 339 | 366 |
Held to maturity, gross unrealized gains | 60 | 82 |
Held to maturity, gross unrealized losses | 7 | 6 |
Investment securities held-to-maturity | 392 | 442 |
Non-U.S. debt securities, asset-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,906 | 2,179 |
Available for sale, gross unrealized gains | 0 | 2 |
Available for sale, gross unrealized losses | 15 | 2 |
Available-for-sale, fair value | 1,891 | 2,179 |
Non-U.S. debt securities, government securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 12,964 | 12,243 |
Available for sale, gross unrealized gains | 162 | 131 |
Available for sale, gross unrealized losses | 7 | 1 |
Available-for-sale, fair value | 13,119 | 12,373 |
Held to maturity, amortized cost | 393 | 328 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 393 | 328 |
Non-U.S. debt securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 9,935 | 8,595 |
Available for sale, gross unrealized gains | 135 | 73 |
Available for sale, gross unrealized losses | 8 | 10 |
Available-for-sale, fair value | 10,062 | 8,658 |
Total non-U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 26,519 | 24,995 |
Available for sale, gross unrealized gains | 297 | 209 |
Available for sale, gross unrealized losses | 38 | 14 |
Available-for-sale, fair value | 26,778 | 25,190 |
Held to maturity, amortized cost | 732 | 694 |
Held to maturity, gross unrealized gains | 60 | 82 |
Held to maturity, gross unrealized losses | 7 | 6 |
Investment securities held-to-maturity | 785 | 770 |
State and political subdivisions | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,654 | 1,725 |
Available for sale, gross unrealized gains | 73 | 59 |
Available for sale, gross unrealized losses | 4 | 1 |
Available-for-sale, fair value | 1,723 | 1,783 |
Collateralized mortgage obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 89 | 104 |
Available for sale, gross unrealized gains | 1 | 0 |
Available for sale, gross unrealized losses | 0 | 0 |
Available-for-sale, fair value | 90 | 104 |
Held to maturity, amortized cost | 585 | 697 |
Held to maturity, gross unrealized gains | 28 | 38 |
Held to maturity, gross unrealized losses | 6 | 1 |
Investment securities held-to-maturity | 607 | 734 |
Total Before MMLF | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Held to maturity, amortized cost | 41,848 | 41,782 |
Held to maturity, gross unrealized gains | 1,313 | 470 |
Held to maturity, gross unrealized losses | 124 | 95 |
Investment securities held-to-maturity | 43,037 | 42,157 |
Other U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 2,685 | 2,941 |
Available for sale, gross unrealized gains | 63 | 32 |
Available for sale, gross unrealized losses | 1 | 0 |
Available-for-sale, fair value | 2,747 | 2,973 |
Money Market Liquidity Facility | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Held to maturity, amortized cost | 11,261 | 0 |
Held to maturity, gross unrealized gains | 33 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 11,294 | 0 |
Total held-to-maturity securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Held to maturity, amortized cost | 53,109 | 41,782 |
Held to maturity, gross unrealized gains | 1,346 | 470 |
Held to maturity, gross unrealized losses | 124 | 95 |
Investment securities held-to-maturity | $ 54,331 | 42,157 |
Federal family education loan program | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Federal government credit support guarantee, percentage minimum | 97.00% | |
Non-US debt securities, supranational and non US agency bonds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available-for-sale, fair value | $ 6,650 | 5,500 |
Non-U.S. debt securities, corporate bonds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available-for-sale, fair value | 1,770 | 1,780 |
Non-US debt securities, covered bonds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available-for-sale, fair value | 480 | 680 |
State and political subdivisions, securities in trusts | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities related to state and political subdivisions | $ 870 | $ 940 |
Investment Securities - Sched_2
Investment Securities - Schedule of Gross Pre-Tax Unrealized Losses on Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | $ 8,491 | $ 12,428 |
Available for sale, gross unrealized losses less than 12 months | 74 | 50 |
Available for sale, fair value 12 months or longer | 1,558 | 2,626 |
Available for sale, gross unrealized losses 12 months or longer | 12 | 24 |
Available for sale, fair value total | 10,049 | 15,054 |
Available for sale, gross unrealized losses total | 86 | 74 |
US Treasury and federal agencies, direct obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 350 | 1,430 |
Available for sale, gross unrealized losses less than 12 months | 0 | 28 |
Available for sale, fair value 12 months or longer | 0 | 0 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 0 |
Available for sale, fair value total | 350 | 1,430 |
Available for sale, gross unrealized losses total | 0 | 28 |
US Treasury and federal agencies, mortgage-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,001 | 2,499 |
Available for sale, gross unrealized losses less than 12 months | 5 | 7 |
Available for sale, fair value 12 months or longer | 124 | 1,665 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 18 |
Available for sale, fair value total | 1,125 | 4,164 |
Available for sale, gross unrealized losses total | 6 | 25 |
Total U.S. Treasury and federal agencies | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,351 | 3,929 |
Available for sale, gross unrealized losses less than 12 months | 5 | 35 |
Available for sale, fair value 12 months or longer | 124 | 1,665 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 18 |
Available for sale, fair value total | 1,475 | 5,594 |
Available for sale, gross unrealized losses total | 6 | 53 |
Asset-backed securities, student loans | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 268 | 271 |
Available for sale, gross unrealized losses less than 12 months | 7 | 1 |
Available for sale, fair value 12 months or longer | 71 | 127 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 1 |
Available for sale, fair value total | 339 | 398 |
Available for sale, gross unrealized losses total | 7 | 2 |
Asset-backed securities, credit cards | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 0 | 89 |
Available for sale, gross unrealized losses less than 12 months | 0 | 1 |
Available for sale, fair value 12 months or longer | 0 | 0 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 0 |
Available for sale, fair value total | 0 | 89 |
Available for sale, gross unrealized losses total | 0 | 1 |
Asset-backed securities, collateralized loan obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,586 | 862 |
Available for sale, gross unrealized losses less than 12 months | 25 | 2 |
Available for sale, fair value 12 months or longer | 283 | 278 |
Available for sale, gross unrealized losses 12 months or longer | 5 | 1 |
Available for sale, fair value total | 1,869 | 1,140 |
Available for sale, gross unrealized losses total | 30 | 3 |
Asset-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,854 | 1,222 |
Available for sale, gross unrealized losses less than 12 months | 32 | 4 |
Available for sale, fair value 12 months or longer | 354 | 405 |
Available for sale, gross unrealized losses 12 months or longer | 5 | 2 |
Available for sale, fair value total | 2,208 | 1,627 |
Available for sale, gross unrealized losses total | 37 | 6 |
Non-U.S. debt securities, mortgage-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,246 | 228 |
Available for sale, gross unrealized losses less than 12 months | 6 | 0 |
Available for sale, fair value 12 months or longer | 206 | 220 |
Available for sale, gross unrealized losses 12 months or longer | 2 | 1 |
Available for sale, fair value total | 1,452 | 448 |
Available for sale, gross unrealized losses total | 8 | 1 |
Non-U.S. debt securities, asset-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,483 | 672 |
Available for sale, gross unrealized losses less than 12 months | 13 | 1 |
Available for sale, fair value 12 months or longer | 105 | 109 |
Available for sale, gross unrealized losses 12 months or longer | 2 | 1 |
Available for sale, fair value total | 1,588 | 781 |
Available for sale, gross unrealized losses total | 15 | 2 |
Non-U.S. debt securities, government securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,145 | 3,246 |
Available for sale, gross unrealized losses less than 12 months | 7 | 1 |
Available for sale, fair value 12 months or longer | 0 | 0 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 0 |
Available for sale, fair value total | 1,145 | 3,246 |
Available for sale, gross unrealized losses total | 7 | 1 |
Non-U.S. debt securities, other | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 856 | 2,736 |
Available for sale, gross unrealized losses less than 12 months | 7 | 9 |
Available for sale, fair value 12 months or longer | 747 | 187 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 1 |
Available for sale, fair value total | 1,603 | 2,923 |
Available for sale, gross unrealized losses total | 8 | 10 |
Total non-U.S. debt securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 4,730 | 6,882 |
Available for sale, gross unrealized losses less than 12 months | 33 | 11 |
Available for sale, fair value 12 months or longer | 1,058 | 516 |
Available for sale, gross unrealized losses 12 months or longer | 5 | 3 |
Available for sale, fair value total | 5,788 | 7,398 |
Available for sale, gross unrealized losses total | 38 | 14 |
State and political subdivisions | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 344 | 163 |
Available for sale, gross unrealized losses less than 12 months | 3 | 0 |
Available for sale, fair value 12 months or longer | 22 | 22 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 1 |
Available for sale, fair value total | 366 | 185 |
Available for sale, gross unrealized losses total | 4 | 1 |
Collateralized mortgage obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 13 | |
Available for sale, gross unrealized losses less than 12 months | 0 | |
Available for sale, fair value 12 months or longer | 4 | |
Available for sale, gross unrealized losses 12 months or longer | 0 | |
Available for sale, fair value total | 17 | |
Available for sale, gross unrealized losses total | 0 | |
Other U.S. debt securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 212 | 219 |
Available for sale, gross unrealized losses less than 12 months | 1 | 0 |
Available for sale, fair value 12 months or longer | 0 | 14 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 0 |
Available for sale, fair value total | 212 | 233 |
Available for sale, gross unrealized losses total | $ 1 | $ 0 |
Investment Securities - Sched_3
Investment Securities - Schedule of Contractual Maturities of Debt Securities (Details) $ in Millions | Jun. 30, 2020USD ($) |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | $ 9,477 |
Available for sale, under 1 year, fair value | 9,504 |
Available for sale, 1 to 5 years, amortized cost | 22,230 |
Available for sale, 1 to 5 years, fair value | 22,573 |
Available for sale, 6 to 10 years, amortized cost | 8,800 |
Available for sale, 6 to 10 years, fair value | 9,014 |
Available for sale, over 10 years, amortized cost | 14,637 |
Available for sale, over 10 years, fair value | 15,140 |
Available for sale, amortized cost | 55,144 |
Available for sale, fair value | 56,231 |
Held to maturity, under 1 year, amortized cost | 15,650 |
Held to maturity, under 1 year, fair value | 15,694 |
Held to maturity, 1 to 5 years, amortized cost | 5,886 |
Held to maturity, 1 to 5 years, fair value | 6,006 |
Held to maturity, 6 to 10 years, amortized cost | 4,268 |
Held to maturity, 6 to 10 years, fair value | 4,434 |
Held to maturity, over 10 years, amortized cost | 27,305 |
Held to maturity, over 10 years, fair value | 28,197 |
Held to maturity, amortized cost | 53,109 |
Held to maturity, fair value | 54,331 |
US Treasury and federal agencies, direct obligations | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 1,560 |
Available for sale, under 1 year, fair value | 1,569 |
Available for sale, 1 to 5 years, amortized cost | 2,022 |
Available for sale, 1 to 5 years, fair value | 2,057 |
Available for sale, 6 to 10 years, amortized cost | 2,049 |
Available for sale, 6 to 10 years, fair value | 2,178 |
Available for sale, over 10 years, amortized cost | 0 |
Available for sale, over 10 years, fair value | 0 |
Available for sale, amortized cost | 5,631 |
Available for sale, fair value | 5,804 |
Held to maturity, under 1 year, amortized cost | 3,310 |
Held to maturity, under 1 year, fair value | 3,332 |
Held to maturity, 1 to 5 years, amortized cost | 4,840 |
Held to maturity, 1 to 5 years, fair value | 4,956 |
Held to maturity, 6 to 10 years, amortized cost | 5 |
Held to maturity, 6 to 10 years, fair value | 5 |
Held to maturity, over 10 years, amortized cost | 24 |
Held to maturity, over 10 years, fair value | 24 |
Held to maturity, amortized cost | 8,179 |
Held to maturity, fair value | 8,317 |
US Treasury and federal agencies, mortgage-backed securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 199 |
Available for sale, under 1 year, fair value | 206 |
Available for sale, 1 to 5 years, amortized cost | 706 |
Available for sale, 1 to 5 years, fair value | 726 |
Available for sale, 6 to 10 years, amortized cost | 2,639 |
Available for sale, 6 to 10 years, fair value | 2,672 |
Available for sale, over 10 years, amortized cost | 12,574 |
Available for sale, over 10 years, fair value | 13,072 |
Available for sale, amortized cost | 16,118 |
Available for sale, fair value | 16,676 |
Held to maturity, under 1 year, amortized cost | 61 |
Held to maturity, under 1 year, fair value | 63 |
Held to maturity, 1 to 5 years, amortized cost | 545 |
Held to maturity, 1 to 5 years, fair value | 557 |
Held to maturity, 6 to 10 years, amortized cost | 3,716 |
Held to maturity, 6 to 10 years, fair value | 3,898 |
Held to maturity, over 10 years, amortized cost | 23,882 |
Held to maturity, over 10 years, fair value | 24,758 |
Held to maturity, amortized cost | 28,204 |
Held to maturity, fair value | 29,276 |
Total U.S. Treasury and federal agencies | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 1,759 |
Available for sale, under 1 year, fair value | 1,775 |
Available for sale, 1 to 5 years, amortized cost | 2,728 |
Available for sale, 1 to 5 years, fair value | 2,783 |
Available for sale, 6 to 10 years, amortized cost | 4,688 |
Available for sale, 6 to 10 years, fair value | 4,850 |
Available for sale, over 10 years, amortized cost | 12,574 |
Available for sale, over 10 years, fair value | 13,072 |
Available for sale, amortized cost | 21,749 |
Available for sale, fair value | 22,480 |
Held to maturity, under 1 year, amortized cost | 3,371 |
Held to maturity, under 1 year, fair value | 3,395 |
Held to maturity, 1 to 5 years, amortized cost | 5,385 |
Held to maturity, 1 to 5 years, fair value | 5,513 |
Held to maturity, 6 to 10 years, amortized cost | 3,721 |
Held to maturity, 6 to 10 years, fair value | 3,903 |
Held to maturity, over 10 years, amortized cost | 23,906 |
Held to maturity, over 10 years, fair value | 24,782 |
Held to maturity, amortized cost | 36,383 |
Held to maturity, fair value | 37,593 |
Asset-backed securities, student loans | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 163 |
Available for sale, under 1 year, fair value | 164 |
Available for sale, 1 to 5 years, amortized cost | 127 |
Available for sale, 1 to 5 years, fair value | 126 |
Available for sale, 6 to 10 years, amortized cost | 2 |
Available for sale, 6 to 10 years, fair value | 2 |
Available for sale, over 10 years, amortized cost | 117 |
Available for sale, over 10 years, fair value | 112 |
Available for sale, amortized cost | 409 |
Available for sale, fair value | 404 |
Held to maturity, under 1 year, amortized cost | 359 |
Held to maturity, under 1 year, fair value | 343 |
Held to maturity, 1 to 5 years, amortized cost | 200 |
Held to maturity, 1 to 5 years, fair value | 193 |
Held to maturity, 6 to 10 years, amortized cost | 539 |
Held to maturity, 6 to 10 years, fair value | 523 |
Held to maturity, over 10 years, amortized cost | 3,050 |
Held to maturity, over 10 years, fair value | 2,993 |
Held to maturity, amortized cost | 4,148 |
Held to maturity, fair value | 4,052 |
Asset-backed securities, credit cards | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 0 |
Available for sale, under 1 year, fair value | 0 |
Available for sale, 1 to 5 years, amortized cost | 0 |
Available for sale, 1 to 5 years, fair value | 0 |
Available for sale, 6 to 10 years, amortized cost | 90 |
Available for sale, 6 to 10 years, fair value | 90 |
Available for sale, over 10 years, amortized cost | 0 |
Available for sale, over 10 years, fair value | 0 |
Available for sale, amortized cost | 90 |
Available for sale, fair value | 90 |
Asset-backed securities, collateralized loan obligations | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 31 |
Available for sale, under 1 year, fair value | 29 |
Available for sale, 1 to 5 years, amortized cost | 978 |
Available for sale, 1 to 5 years, fair value | 964 |
Available for sale, 6 to 10 years, amortized cost | 823 |
Available for sale, 6 to 10 years, fair value | 811 |
Available for sale, over 10 years, amortized cost | 117 |
Available for sale, over 10 years, fair value | 115 |
Available for sale, amortized cost | 1,949 |
Available for sale, fair value | 1,919 |
Total asset-backed securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 194 |
Available for sale, under 1 year, fair value | 193 |
Available for sale, 1 to 5 years, amortized cost | 1,105 |
Available for sale, 1 to 5 years, fair value | 1,090 |
Available for sale, 6 to 10 years, amortized cost | 915 |
Available for sale, 6 to 10 years, fair value | 903 |
Available for sale, over 10 years, amortized cost | 234 |
Available for sale, over 10 years, fair value | 227 |
Available for sale, amortized cost | 2,448 |
Available for sale, fair value | 2,413 |
Held to maturity, under 1 year, amortized cost | 359 |
Held to maturity, under 1 year, fair value | 343 |
Held to maturity, 1 to 5 years, amortized cost | 200 |
Held to maturity, 1 to 5 years, fair value | 193 |
Held to maturity, 6 to 10 years, amortized cost | 539 |
Held to maturity, 6 to 10 years, fair value | 523 |
Held to maturity, over 10 years, amortized cost | 3,050 |
Held to maturity, over 10 years, fair value | 2,993 |
Held to maturity, amortized cost | 4,148 |
Held to maturity, fair value | 4,052 |
Non-U.S. debt securities, mortgage-backed securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 252 |
Available for sale, under 1 year, fair value | 251 |
Available for sale, 1 to 5 years, amortized cost | 550 |
Available for sale, 1 to 5 years, fair value | 546 |
Available for sale, 6 to 10 years, amortized cost | 130 |
Available for sale, 6 to 10 years, fair value | 129 |
Available for sale, over 10 years, amortized cost | 782 |
Available for sale, over 10 years, fair value | 780 |
Available for sale, amortized cost | 1,714 |
Available for sale, fair value | 1,706 |
Held to maturity, under 1 year, amortized cost | 117 |
Held to maturity, under 1 year, fair value | 112 |
Held to maturity, 1 to 5 years, amortized cost | 27 |
Held to maturity, 1 to 5 years, fair value | 27 |
Held to maturity, 6 to 10 years, amortized cost | 3 |
Held to maturity, 6 to 10 years, fair value | 3 |
Held to maturity, over 10 years, amortized cost | 192 |
Held to maturity, over 10 years, fair value | 250 |
Held to maturity, amortized cost | 339 |
Held to maturity, fair value | 392 |
Non-U.S. debt securities, asset-backed securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 272 |
Available for sale, under 1 year, fair value | 270 |
Available for sale, 1 to 5 years, amortized cost | 984 |
Available for sale, 1 to 5 years, fair value | 977 |
Available for sale, 6 to 10 years, amortized cost | 318 |
Available for sale, 6 to 10 years, fair value | 315 |
Available for sale, over 10 years, amortized cost | 332 |
Available for sale, over 10 years, fair value | 329 |
Available for sale, amortized cost | 1,906 |
Available for sale, fair value | 1,891 |
Non-U.S. debt securities, government securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 4,690 |
Available for sale, under 1 year, fair value | 4,694 |
Available for sale, 1 to 5 years, amortized cost | 7,339 |
Available for sale, 1 to 5 years, fair value | 7,488 |
Available for sale, 6 to 10 years, amortized cost | 689 |
Available for sale, 6 to 10 years, fair value | 693 |
Available for sale, over 10 years, amortized cost | 246 |
Available for sale, over 10 years, fair value | 244 |
Available for sale, amortized cost | 12,964 |
Available for sale, fair value | 13,119 |
Held to maturity, under 1 year, amortized cost | 393 |
Held to maturity, under 1 year, fair value | 393 |
Held to maturity, 1 to 5 years, amortized cost | 0 |
Held to maturity, 1 to 5 years, fair value | 0 |
Held to maturity, 6 to 10 years, amortized cost | 0 |
Held to maturity, 6 to 10 years, fair value | 0 |
Held to maturity, over 10 years, amortized cost | 0 |
Held to maturity, over 10 years, fair value | 0 |
Held to maturity, amortized cost | 393 |
Held to maturity, fair value | 393 |
Non-U.S. debt securities, other | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 1,446 |
Available for sale, under 1 year, fair value | 1,452 |
Available for sale, 1 to 5 years, amortized cost | 6,968 |
Available for sale, 1 to 5 years, fair value | 7,068 |
Available for sale, 6 to 10 years, amortized cost | 1,431 |
Available for sale, 6 to 10 years, fair value | 1,451 |
Available for sale, over 10 years, amortized cost | 90 |
Available for sale, over 10 years, fair value | 91 |
Available for sale, amortized cost | 9,935 |
Available for sale, fair value | 10,062 |
Total non-U.S. debt securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 6,660 |
Available for sale, under 1 year, fair value | 6,667 |
Available for sale, 1 to 5 years, amortized cost | 15,841 |
Available for sale, 1 to 5 years, fair value | 16,079 |
Available for sale, 6 to 10 years, amortized cost | 2,568 |
Available for sale, 6 to 10 years, fair value | 2,588 |
Available for sale, over 10 years, amortized cost | 1,450 |
Available for sale, over 10 years, fair value | 1,444 |
Available for sale, amortized cost | 26,519 |
Available for sale, fair value | 26,778 |
Held to maturity, under 1 year, amortized cost | 510 |
Held to maturity, under 1 year, fair value | 505 |
Held to maturity, 1 to 5 years, amortized cost | 27 |
Held to maturity, 1 to 5 years, fair value | 27 |
Held to maturity, 6 to 10 years, amortized cost | 3 |
Held to maturity, 6 to 10 years, fair value | 3 |
Held to maturity, over 10 years, amortized cost | 192 |
Held to maturity, over 10 years, fair value | 250 |
Held to maturity, amortized cost | 732 |
Held to maturity, fair value | 785 |
State and political subdivisions | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 169 |
Available for sale, under 1 year, fair value | 169 |
Available for sale, 1 to 5 years, amortized cost | 669 |
Available for sale, 1 to 5 years, fair value | 683 |
Available for sale, 6 to 10 years, amortized cost | 526 |
Available for sale, 6 to 10 years, fair value | 564 |
Available for sale, over 10 years, amortized cost | 290 |
Available for sale, over 10 years, fair value | 307 |
Available for sale, amortized cost | 1,654 |
Available for sale, fair value | 1,723 |
Collateralized mortgage obligations | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 0 |
Available for sale, under 1 year, fair value | 0 |
Available for sale, 1 to 5 years, amortized cost | 0 |
Available for sale, 1 to 5 years, fair value | 0 |
Available for sale, 6 to 10 years, amortized cost | 0 |
Available for sale, 6 to 10 years, fair value | 0 |
Available for sale, over 10 years, amortized cost | 89 |
Available for sale, over 10 years, fair value | 90 |
Available for sale, amortized cost | 89 |
Available for sale, fair value | 90 |
Held to maturity, under 1 year, amortized cost | 149 |
Held to maturity, under 1 year, fair value | 157 |
Held to maturity, 1 to 5 years, amortized cost | 274 |
Held to maturity, 1 to 5 years, fair value | 273 |
Held to maturity, 6 to 10 years, amortized cost | 5 |
Held to maturity, 6 to 10 years, fair value | 5 |
Held to maturity, over 10 years, amortized cost | 157 |
Held to maturity, over 10 years, fair value | 172 |
Held to maturity, amortized cost | 585 |
Held to maturity, fair value | 607 |
Total | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Held to maturity, under 1 year, amortized cost | 4,389 |
Held to maturity, under 1 year, fair value | 4,400 |
Held to maturity, 1 to 5 years, amortized cost | 5,886 |
Held to maturity, 1 to 5 years, fair value | 6,006 |
Held to maturity, 6 to 10 years, amortized cost | 4,268 |
Held to maturity, 6 to 10 years, fair value | 4,434 |
Held to maturity, over 10 years, amortized cost | 27,305 |
Held to maturity, over 10 years, fair value | 28,197 |
Held to maturity, amortized cost | 41,848 |
Held to maturity, fair value | 43,037 |
Other U.S. debt securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 695 |
Available for sale, under 1 year, fair value | 700 |
Available for sale, 1 to 5 years, amortized cost | 1,887 |
Available for sale, 1 to 5 years, fair value | 1,938 |
Available for sale, 6 to 10 years, amortized cost | 103 |
Available for sale, 6 to 10 years, fair value | 109 |
Available for sale, over 10 years, amortized cost | 0 |
Available for sale, over 10 years, fair value | 0 |
Available for sale, amortized cost | 2,685 |
Available for sale, fair value | 2,747 |
Money Market Liquidity Facility | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Held to maturity, under 1 year, amortized cost | 11,261 |
Held to maturity, under 1 year, fair value | 11,294 |
Held to maturity, 1 to 5 years, amortized cost | 0 |
Held to maturity, 1 to 5 years, fair value | 0 |
Held to maturity, 6 to 10 years, amortized cost | 0 |
Held to maturity, 6 to 10 years, fair value | 0 |
Held to maturity, over 10 years, amortized cost | 0 |
Held to maturity, over 10 years, fair value | 0 |
Held to maturity, amortized cost | 11,261 |
Held to maturity, fair value | $ 11,294 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)loan_segmentloan | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)loan | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of loans and leases segments | loan_segment | 2 | |||||||
Loans and leases pledged as collateral | $ 7,510 | $ 7,510 | $ 6,750 | |||||
Number of loans on non-accrual status | loan | 0 | 0 | 0 | |||||
Loans or leases 30 days or more past due | loan | 0 | 0 | 0 | |||||
Number of contracts | loan | 0 | 0 | ||||||
Loans no longer meeting similar risk of collective pool | loan | 1 | 1 | 1 | |||||
Loans no longer meeting similar risk of collective pool, amount | $ 25 | $ 25 | $ 25 | |||||
Loans, allowance for losses | $ 141 | $ 72 | $ 141 | $ 72 | 74 | $ 70 | $ 67 | |
Investment grade loans | 79.00% | 79.00% | ||||||
Speculative grade loans | 21.00% | 21.00% | ||||||
Speculative senior secured loans with BB or B rating | 83.00% | 83.00% | ||||||
Provision for credit losses | $ 52 | $ 1 | $ 88 | $ 5 | ||||
Commercial and Financial Segment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, allowance for losses | 1 | |||||||
Leveraged loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Proceeds from sale of loans receivable | 127 | |||||||
Financing receivable, held-for-sale | 23 | 23 | ||||||
Includes Allowances on Unfunded Commitments | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans, allowance for losses | 163 | 163 | $ 93 | $ 124 | ||||
Provision for credit losses | $ 52 | $ 88 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Net Loans (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | $ 26,860 | $ 26,309 | |||
Allowance for loan losses | (141) | (74) | $ (72) | $ (70) | $ (67) |
Loans, net of allowance | 26,719 | 26,235 | |||
Loans, Excluding Unfunded Commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 26,860 | 26,309 | |||
Allowance for loan losses | (141) | (74) | |||
Loans, net of allowance | 26,719 | 26,235 | |||
Fund Finance | Securities Finance Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 1,448 | 2,537 | |||
Fund Finance | Municipal Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 933 | 848 | |||
Fund Finance | Other Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 97 | 26 | |||
Commercial real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 1,944 | 1,766 | |||
Domestic | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 19,453 | 20,528 | |||
Domestic | Fund Finance | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 9,696 | 10,270 | |||
Overdrafts | 4,455 | 3,256 | |||
Domestic | Fund Finance | 40 Act Funds | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 5,026 | 6,040 | |||
Domestic | Fund Finance | Private Equity Capital Call Finance Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 7,272 | 6,076 | |||
Domestic | Fund Finance | Business Development | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 820 | 932 | |||
Domestic | Leveraged loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 3,071 | 3,342 | |||
Domestic | Overdrafts | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 2,292 | 1,739 | |||
Domestic | Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 2,450 | 3,411 | |||
Domestic | Commercial real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 1,944 | 1,766 | |||
Foreign | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 7,407 | 5,781 | |||
Foreign | Fund Finance | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 3,986 | 3,145 | |||
Foreign | Leveraged loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 1,230 | 1,119 | |||
Foreign | Overdrafts | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | 2,163 | 1,517 | |||
Foreign | Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, gross | $ 28 | $ 0 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Investments by Credit Quality (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | $ 26,860,000 | $ 26,309,000 |
Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 21,190,000 | 21,267,000 |
Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 5,616,000 | 5,008,000 |
Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 54,000 | 25,000 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 9,000 | |
Commercial and Financial Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 24,916,000 | 24,543,000 |
Commercial and Financial Segment | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 19,413,000 | 19,501,000 |
Commercial and Financial Segment | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 5,449,000 | 5,008,000 |
Commercial and Financial Segment | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 54,000 | 25,000 |
Commercial and Financial Segment | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 9,000 | |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 1,944,000 | 1,766,000 |
Commercial Real Estate | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 1,777,000 | 1,766,000 |
Commercial Real Estate | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 167,000 | 0 |
Commercial Real Estate | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Commercial Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | |
Domestic | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 19,453,000 | 20,528,000 |
Domestic | Commercial and Financial Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 17,509,000 | |
Domestic | Commercial and Financial Segment | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 13,506,000 | |
Domestic | Commercial and Financial Segment | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 3,949,000 | |
Domestic | Commercial and Financial Segment | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 54,000 | |
Domestic | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 1,944,000 | 1,766,000 |
Domestic | Commercial Real Estate | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 1,777,000 | |
Domestic | Commercial Real Estate | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 167,000 | |
Domestic | Loans to investment funds | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 9,696,000 | 10,270,000 |
Overdrafts | $ 4,455,000 | $ 3,256,000 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Amortized Cost Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 5,315,000 | |
2019 | 2,399,000 | |
2018 | 2,037,000 | |
2017 | 1,373,000 | |
2016 | 330,000 | |
2015 | 29,000 | |
Prior | 63,000 | |
Revolving Loans | 15,314,000 | |
Loans, gross | 26,860,000 | $ 26,309,000 |
Interest income | 63,000 | |
Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 21,190,000 | 21,267,000 |
Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 5,616,000 | 5,008,000 |
Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 54,000 | 25,000 |
Domestic | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 19,453,000 | 20,528,000 |
Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 7,407,000 | 5,781,000 |
Commercial and Financial Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 24,916,000 | 24,543,000 |
Commercial and Financial Segment | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 19,413,000 | 19,501,000 |
Commercial and Financial Segment | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 5,449,000 | 5,008,000 |
Commercial and Financial Segment | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 54,000 | 25,000 |
Commercial and Financial Segment | Domestic | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 2,800,000 | |
2019 | 1,437,000 | |
2018 | 978,000 | |
2017 | 886,000 | |
2016 | 108,000 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans | 11,300,000 | |
Loans, gross | 17,509,000 | |
Commercial and Financial Segment | Domestic | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 2,478,000 | |
2019 | 438,000 | |
2018 | 5,000 | |
2017 | 120,000 | |
2016 | 0 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans | 10,465,000 | |
Loans, gross | 13,506,000 | |
Commercial and Financial Segment | Domestic | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 322,000 | |
2019 | 999,000 | |
2018 | 944,000 | |
2017 | 741,000 | |
2016 | 108,000 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans | 835,000 | |
Loans, gross | 3,949,000 | |
Commercial and Financial Segment | Domestic | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 29,000 | |
2017 | 25,000 | |
2016 | 0 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Loans, gross | 54,000 | |
Commercial and Financial Segment | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 2,337,000 | |
2019 | 412,000 | |
2018 | 348,000 | |
2017 | 208,000 | |
2016 | 25,000 | |
2015 | 0 | |
Prior | 63,000 | |
Revolving Loans | 4,014,000 | |
Loans, gross | 7,407,000 | |
Commercial and Financial Segment | Non-U.S. | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 2,001,000 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans | 3,906,000 | |
Loans, gross | 5,907,000 | |
Commercial and Financial Segment | Non-U.S. | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 336,000 | |
2019 | 412,000 | |
2018 | 348,000 | |
2017 | 208,000 | |
2016 | 25,000 | |
2015 | 0 | |
Prior | 63,000 | |
Revolving Loans | 108,000 | |
Loans, gross | 1,500,000 | |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 1,944,000 | 1,766,000 |
Commercial real estate | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 1,777,000 | 1,766,000 |
Commercial real estate | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 167,000 | 0 |
Commercial real estate | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Commercial real estate | Domestic | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 178,000 | |
2019 | 550,000 | |
2018 | 711,000 | |
2017 | 279,000 | |
2016 | 197,000 | |
2015 | 29,000 | |
Prior | 0 | |
Revolving Loans | 0 | |
Loans, gross | 1,944,000 | $ 1,766,000 |
Commercial real estate | Domestic | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 178,000 | |
2019 | 440,000 | |
2018 | 654,000 | |
2017 | 279,000 | |
2016 | 197,000 | |
2015 | 29,000 | |
Prior | 0 | |
Revolving Loans | 0 | |
Loans, gross | 1,777,000 | |
Commercial real estate | Domestic | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 110,000 | |
2018 | 57,000 | |
2017 | 0 | |
2016 | 0 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Loans, gross | 167,000 | |
Off Balance Sheet Commitment and Guarantees | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 367,214,000 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans | 36,372,000 | |
Loans, gross | 403,586,000 | |
Financing Receivables and Off Balance Sheet Commitments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 372,529,000 | |
2019 | 2,399,000 | |
2018 | 2,037,000 | |
2017 | 1,373,000 | |
2016 | 330,000 | |
2015 | 29,000 | |
Prior | 63,000 | |
Revolving Loans | 51,686,000 | |
Loans, gross | 430,446,000 | |
Unfunded Loan Commitment | Off Balance Sheet Commitment and Guarantees | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans | 33,126,000 | |
Loans, gross | 33,126,000 | |
Indemnified Securities Financing | Off Balance Sheet Commitment and Guarantees | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 367,214,000 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Loans, gross | 367,214,000 | |
Standby Letters of Credit | Off Balance Sheet Commitment and Guarantees | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans | 3,246,000 | |
Loans, gross | $ 3,246,000 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Activity in the Allowance for Credit Losses for Loans Held for Investment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 70 | $ 74 | $ 67 | |
Provision | $ 52 | 1 | 88 | 5 |
FX translation | 1 | 1 | ||
Ending balance | 141 | $ 72 | 141 | $ 72 |
Leveraged Loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 83 | 61 | ||
Charge-offs(1) | (14) | (19) | ||
Provision | 43 | 70 | ||
FX translation | 1 | 1 | ||
Ending balance | 113 | 113 | ||
Other Loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 10 | 10 | ||
Charge-offs(1) | 0 | 0 | ||
Provision | 10 | 10 | ||
FX translation | 0 | 0 | ||
Ending balance | 20 | 20 | ||
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 4 | 2 | ||
Charge-offs(1) | 0 | 0 | ||
Provision | 4 | 6 | ||
FX translation | 0 | 0 | ||
Ending balance | 8 | 8 | ||
Off-Balance Sheet Commitments | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 22 | 19 | ||
Charge-offs(1) | 0 | 0 | ||
Provision | (4) | (1) | ||
FX translation | 0 | 0 | ||
Ending balance | 18 | 18 | ||
All Other | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 5 | 1 | ||
Charge-offs(1) | 0 | 0 | ||
Provision | (1) | 3 | ||
FX translation | 0 | 0 | ||
Ending balance | 4 | 4 | ||
Total Credit Reserve | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 124 | 93 | ||
Charge-offs(1) | (14) | (19) | ||
Provision | 52 | 88 | ||
FX translation | 1 | |||
Ending balance | $ 163 | $ 163 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 7,556 | $ 7,446 |
Acquisitions | 122 | |
Foreign currency translation | (18) | (12) |
Ending balance | 7,538 | 7,556 |
Finite-lived intangible assets acquired | 93 | |
Investment Servicing | ||
Goodwill [Roll Forward] | ||
Beginning balance | 7,289 | 7,180 |
Acquisitions | 122 | |
Foreign currency translation | (16) | (13) |
Ending balance | 7,273 | 7,289 |
Finite-lived intangible assets acquired | 93 | |
Goodwill, period increase (decrease) | 113 | |
Investment Management | ||
Goodwill [Roll Forward] | ||
Beginning balance | 267 | 266 |
Acquisitions | 0 | |
Foreign currency translation | (2) | 1 |
Ending balance | $ 265 | 267 |
Finite-lived intangible assets acquired | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Finite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance | $ 2,030 | $ 2,369 | $ 2,369 | ||
Acquisitions | (93) | ||||
Amortization | $ (58) | $ (59) | (116) | (119) | (236) |
Foreign currency translation | (10) | ||||
Ending balance | 1,914 | 1,914 | 2,030 | ||
Investment Servicing | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance | 1,908 | 2,218 | 2,218 | ||
Acquisitions | (93) | ||||
Amortization | (102) | (207) | |||
Foreign currency translation | (10) | ||||
Ending balance | 1,806 | 1,806 | 1,908 | ||
Investment Management | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance | 122 | $ 151 | 151 | ||
Acquisitions | 0 | ||||
Amortization | (14) | (29) | |||
Foreign currency translation | 0 | ||||
Ending balance | $ 108 | $ 108 | $ 122 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Gross Carrying Amount, Accumulated Amortization And Net Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 3,802 | $ 4,280 | |
Accumulated Amortization | (1,888) | (2,250) | |
Net Carrying Amount | 1,914 | 2,030 | $ 2,369 |
Client relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 2,639 | 3,104 | |
Accumulated Amortization | (1,329) | (1,718) | |
Net Carrying Amount | 1,310 | 1,386 | |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 390 | 403 | |
Accumulated Amortization | (92) | (87) | |
Net Carrying Amount | 298 | 316 | |
Core deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 673 | 673 | |
Accumulated Amortization | (398) | (381) | |
Net Carrying Amount | 275 | 292 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 100 | 100 | |
Accumulated Amortization | (69) | (64) | |
Net Carrying Amount | $ 31 | $ 36 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | ||
Securities borrowed | $ 13,035 | $ 18,524 |
Derivative instruments, net | 4,771 | 4,753 |
Bank-owned life insurance | 3,442 | 3,395 |
Investments in joint ventures and other unconsolidated entities | 2,696 | 2,899 |
Collateral, net | 1,779 | 874 |
Receivable for securities settlement | 1,368 | 336 |
Right-of-use assets | 802 | 858 |
Accounts receivable | 715 | 432 |
Prepaid expenses | 446 | 395 |
Income taxes receivable | 293 | 309 |
Deferred tax assets, net of valuation allowance | 199 | 216 |
Deposits with clearing organizations | 58 | 58 |
Other(3) | 891 | 962 |
Total | 30,495 | 34,011 |
Other assets, advances | $ 600 | $ 670 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 15,926 | $ 15,381 |
Interest rate swap | Fair Value Hedges | ||
Derivative [Line Items] | ||
Notional amount of derivative instruments | 10,930 | $ 10,200 |
Credit swap agreements | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 1,770 | |
Cash collateral provided for derivative instruments | 1,030 | |
Maximum additional amount of payments related to termination events | $ 740 | |
Floating-rate loans | ||
Derivative [Line Items] | ||
Term of debt instrument | 4 years |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Outstanding Hedges: (Notional Amount) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives not designated as hedging instruments | Interest rate contracts | Futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | $ 2,500 | $ 4,368 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 1,436 | 1,040 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Forward, swap and spot | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 2,614,018 | 2,378,808 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options purchased | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 1,165 | 1,581 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options written | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 907 | 1,110 |
Derivatives not designated as hedging instruments | Other derivative contracts | Stable value contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 29,060 | 26,895 |
Derivatives not designated as hedging instruments | Other derivative contracts | Deferred value awards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 426 | 389 |
Derivatives designated as hedging instruments | Interest rate contracts | Swap agreements | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 15,929 | 15,196 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Forward and swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | $ 5,516 | $ 3,176 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of The Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 16,041 | $ 15,148 |
Fair value of derivative liabilities | 15,926 | 15,381 |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 15,990 | 15,140 |
Fair value of derivative liabilities | 15,685 | 15,150 |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 51 | 8 |
Fair value of derivative liabilities | 56 | 49 |
Derivatives not designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 15,974 | 15,140 |
Derivatives not designated as hedging instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 15,732 | 15,236 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 15,974 | 15,140 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 15,547 | 15,054 |
Derivatives not designated as hedging instruments | Other derivative contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 0 |
Derivatives not designated as hedging instruments | Other derivative contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 185 | 182 |
Derivatives designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 67 | 8 |
Derivatives designated as hedging instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 194 | 145 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 16 | 0 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 138 | 96 |
Derivatives designated as hedging instruments | Interest rate contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 51 | 8 |
Derivatives designated as hedging instruments | Interest rate contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 56 | $ 49 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statement of Income (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | $ 187 | $ 51 | $ 458 | $ 97 |
Foreign exchange contracts | Foreign exchange trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 215 | 156 | 548 | 316 |
Foreign exchange contracts | Interest expense | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 17 | (59) | 19 | (98) |
Interest rate contracts | Foreign exchange trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | 3 | (1) |
Other derivative contracts | Compensation and employee benefits | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | $ (45) | $ (46) | $ (112) | $ (120) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Carrying Amount and Cumulative Basis Adjustments for Hedge Accounting (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Hedged Items Currently Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | $ 11,388 | $ 10,709 |
Cumulative Hedge Accounting Basis Adjustments | 817 | 213 |
Hedged Items Currently Designated | Long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 10,515 | 9,769 |
Cumulative Hedge Accounting Basis Adjustments | 762 | 164 |
Hedged Items Currently Designated | Investment securities available-for-sale | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 873 | 940 |
Cumulative Hedge Accounting Basis Adjustments | 55 | 49 |
Hedged Items No Longer Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 1,200 | 1,199 |
Cumulative Hedge Accounting Basis Adjustments | (2) | (8) |
Hedged Items No Longer Designated | Long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 1,200 | 1,199 |
Cumulative Hedge Accounting Basis Adjustments | (2) | (8) |
Hedged Items No Longer Designated | Investment securities available-for-sale | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 0 | 0 |
Cumulative Hedge Accounting Basis Adjustments | $ 0 | $ 0 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Impact on Derivatives and Hedged Items on Consolidated Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | $ 39 | $ 177 | $ 575 | $ 280 |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | (43) | (176) | (568) | (274) |
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes | 3 | 5 | (4) | 3 |
Investment securities available-for-sale | Net interest income | Interest rate contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | 3 | (8) | (8) | (11) |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | (4) | 7 | 6 | 11 |
Long-term debt | Net interest income | Interest rate contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | 36 | 185 | 583 | 291 |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | $ (39) | $ (183) | $ (574) | $ (285) |
Derivative Financial Instrume_9
Derivative Financial Instruments - Schedule of Differences Between the Gains (Losses) on the Derivative and The Gains (Losses) on the Hedged Item (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative [Line Items] | ||||
Gain (loss) on derivative recognized in OCI, cash flow hedge | $ 30 | $ 6 | $ 198 | $ 43 |
Gain (loss) on derivative recognized in OCI, net investment hedge | (86) | (2) | 22 | 18 |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative | (56) | 4 | 220 | 61 |
Gain (loss) on hedges reclassified to income, cash flow hedge | 21 | 5 | 28 | 10 |
Gain (loss) on hedges reclassified to income, net investment hedge | 0 | 0 | 0 | 0 |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 21 | 5 | 28 | 10 |
Interest rate contracts | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative recognized in OCI, cash flow hedge | 21 | 21 | 179 | 31 |
Interest rate contracts | Net interest revenue | ||||
Derivative [Line Items] | ||||
Gain (loss) on hedges reclassified to income, cash flow hedge | 14 | (2) | 14 | (4) |
Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative recognized in OCI, cash flow hedge | 9 | (15) | 19 | 12 |
Gain (loss) on derivative recognized in OCI, net investment hedge | (86) | (2) | 22 | 18 |
Foreign exchange contracts | Net interest revenue | ||||
Derivative [Line Items] | ||||
Gain (loss) on hedges reclassified to income, cash flow hedge | 7 | 7 | 14 | 14 |
Foreign exchange contracts | Gains (Losses) related to investment securities, net | ||||
Derivative [Line Items] | ||||
Gain (loss) on hedges reclassified to income, net investment hedge | $ 0 | $ 0 | $ 0 | $ 0 |
Offsetting Arrangements - Narra
Offsetting Arrangements - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Offsetting [Abstract] | ||
Fair Value of securities received as collateral that can be resold or repledged | $ 8,860 | $ 10,090 |
Fair Value of securities received as collateral that have been resold or repledged | $ 1,940 | $ 5,720 |
Offsetting Arrangements - Asset
Offsetting Arrangements - Assets With Offsetting Arrangements (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | $ 16,041 | $ 15,148 |
Derivatives, Gross Amounts Offset in Statement of Condition | (11,270) | (10,395) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 4,771 | 4,753 |
Derivatives, Net Amount | 4,320 | 4,068 |
Derivatives, Cash collateral and securities netting, cash offset | (1,969) | (2,310) |
Derivatives, Cash collateral and securities netting, Cash and Securities Received | (451) | (685) |
Derivatives, Cash collateral and securities netting, Net Amount | (2,420) | (2,995) |
Resale agreements and securities borrowing, Gross Amounts of Recognized Assets | 97,012 | 179,989 |
Resale agreements and securities borrowing, Gross Amounts Offset in Statement of Condition | (79,951) | (159,978) |
Resale agreements and securities borrowing, Net Amounts of Assets Presented in Statement of Condition | 17,061 | 20,011 |
Resale agreements and securities borrowing, Cash and Securities Received | (15,367) | (19,572) |
Resale agreements and securities borrowing, Net Amount | 1,694 | 439 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Assets | 113,053 | 195,137 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | (91,221) | (170,373) |
Total derivatives and other financial instruments, Net Amounts of Assets Presented in Statement of Condition | 21,832 | 24,764 |
Total derivatives and other financial instruments, Cash and Securities Received | (15,818) | (20,257) |
Total derivatives and other financial instruments, Net Amount | 6,014 | 4,507 |
Securities purchased under resale agreements | 4,026 | 1,487 |
Cash collateral provided for securities borrowing | 13,040 | 18,520 |
Foreign exchange contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 15,990 | 15,140 |
Derivatives, Gross Amounts Offset in Statement of Condition | (9,285) | (8,081) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 6,705 | 7,059 |
Derivatives, Net Amount | 6,705 | 7,059 |
Interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 51 | 8 |
Derivatives, Gross Amounts Offset in Statement of Condition | (16) | (4) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 35 | 4 |
Derivatives, Net Amount | $ 35 | $ 4 |
Offsetting Arrangements - Liabi
Offsetting Arrangements - Liabilities With Offsetting Arrangements (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | $ 15,926 | $ 15,381 |
Derivatives, Gross amounts offset in statement of condition | (10,847) | (8,922) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 5,079 | 6,459 |
Derivative, Net Amount | 4,508 | 5,902 |
Derivative liability, collateral, cash offset | (1,546) | (837) |
Derivatives, Cash and collateral securities netting, Cash and Securities Provided | (571) | (557) |
Derivatives, Cash and collateral securities netting, Net | (2,117) | (1,394) |
Resale agreements and securities lending, Gross Amounts of Recognized Liabilities(1)(2) | 89,465 | 171,853 |
Resale agreements and securities lending, Gross Amounts Offset in Statement of Condition(3) | (79,951) | (159,977) |
Resale agreements and securities lending, Net Amounts of Liabilities Presented in Statement of Condition | 9,514 | 11,876 |
Resale agreements and securities lending, Cash and Securities Provided | (8,036) | (10,793) |
Resale agreements and securities lending, Net Amount | 1,478 | 1,083 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Liabilities | 105,391 | 187,234 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | (90,798) | (168,899) |
Total derivatives and other financial instruments, Net Amounts of Liabilities Presented in Statement of Condition | 14,593 | 18,335 |
Total derivatives and other financial instruments, Cash and Securities Provided | (8,607) | (11,350) |
Total derivatives and other financial instruments, Net Amount | 5,986 | 6,985 |
Securities sold under repurchase agreements | 3,513 | 1,102 |
Foreign exchange contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 15,685 | 15,150 |
Derivatives, Gross amounts offset in statement of condition | (9,285) | (8,081) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 6,400 | 7,069 |
Derivative, Net Amount | 6,400 | 7,069 |
Interest rate contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 56 | 49 |
Derivatives, Gross amounts offset in statement of condition | (16) | (4) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 40 | 45 |
Derivative, Net Amount | 40 | 45 |
Other derivative contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 185 | 182 |
Derivatives, Gross amounts offset in statement of condition | 0 | 0 |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 185 | 182 |
Derivative, Net Amount | 185 | 182 |
Accrued expenses and other liabilities | ||
Offsetting Liabilities [Line Items] | ||
Cash collateral received in connection to securities finance activities | $ 6,000 | $ 10,770 |
Offsetting Arrangements - Repo,
Offsetting Arrangements - Repo, Sec Lending Transactions Maturity By Category (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | $ 79,585 | $ 156,465 |
Securities lending transactions | 9,880 | 15,388 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 89,465 | 171,853 |
U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 79,585 | 156,465 |
Securities lending transactions | 23 | 15 |
Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 143 | 354 |
Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 7,212 | 7,519 |
Other | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 2,502 | 7,500 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 79,585 | 156,465 |
Securities lending transactions | 9,177 | 15,258 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 88,762 | 171,723 |
Overnight and Continuous | U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 79,585 | 156,465 |
Securities lending transactions | 23 | 15 |
Overnight and Continuous | Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 143 | 354 |
Overnight and Continuous | Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 6,509 | 7,389 |
Overnight and Continuous | Other | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 2,502 | 7,500 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending transactions | 35 | 0 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 35 | 0 |
Up to 30 Days | U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending transactions | 0 | 0 |
Up to 30 Days | Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 0 | 0 |
Up to 30 Days | Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 35 | 0 |
Up to 30 Days | Other | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 0 | 0 |
Greater than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending transactions | 668 | 130 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 668 | 130 |
Greater than 90 Days | U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending transactions | 0 | 0 |
Greater than 90 Days | Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 0 | 0 |
Greater than 90 Days | Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 668 | 130 |
Greater than 90 Days | Other | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | $ 0 | $ 0 |
Commitments and Guarantees - Co
Commitments and Guarantees - Contractual Amounts of Credit-Related Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded credit facilities | $ 33,126 | $ 29,697 |
Indemnified securities financing | 367,214 | 367,901 |
Standby letters of credit | $ 3,246 | $ 3,324 |
Unfunded Commitments Set to Expire | 73.00% |
Commitments and Guarantees - Sc
Commitments and Guarantees - Schedule Of Repurchase Agreements (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Fair value of indemnified securities financing | $ 367,214 | $ 367,901 |
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing | 384,761 | 385,428 |
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements | 53,273 | 45,658 |
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements | $ 56,829 | $ 48,887 |
Commitments and Guarantees - Na
Commitments and Guarantees - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Cash collateral provided for securities lending | $ 13,040 | $ 18,520 |
Accrued expenses and other liabilities | ||
Loss Contingencies [Line Items] | ||
Cash collateral received in connection to securities finance activities | $ 6,000 | $ 10,770 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Jun. 30, 2019 | Jan. 31, 2017 | Jun. 30, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||||
Accrual of loss contingency | $ 147 | |||
Estimate of possible loss | 65 | |||
Payments for settlements | $ 48.8 | |||
Unrecognized tax benefits | 146 | $ 149 | ||
Invoicing Matter | ||||
Loss Contingencies [Line Items] | ||||
Amount awarded to other party | $ 5.5 | $ 40 | ||
Legal Reserve | Invoicing Matter | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ 375 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Investment securities related to state and political subdivisions | $ 870 | $ 940 | |
Variable interest entity, other short-term borrowings | $ 770 | 820 | |
Weighted average life of trusts | 2 years 7 months 6 days | 3 years | |
Assets | $ 280,242 | 245,610 | |
Liabilities | 255,369 | 221,179 | |
VIE - primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 17 | 21 | |
Liabilities | 4 | 5 | |
Potential maximum loss exposure of unconsolidated funds | 13 | 16 | |
VIE - not primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Potential maximum loss exposure of unconsolidated funds | $ 20 | $ 21 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | ||||
Sep. 30, 2018 | Apr. 30, 2016 | May 31, 2015 | Feb. 28, 2014 | Jun. 30, 2020 | Dec. 31, 2019 | |
Series D Preferred Stock, Depository Share | ||||||
Class of Stock [Line Items] | ||||||
Depositary shares issued (shares) | 30,000,000 | |||||
Liquidation preference per share (USD per share) | $ 25 | |||||
Series D Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Ownership Interest Per Depositary Share | 0.025% | |||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||
Per annum dividend rate | 5.90% | |||||
Preferred stock | $ 742 | $ 742 | ||||
Series F Preferred Stock, Depository Share | ||||||
Class of Stock [Line Items] | ||||||
Depositary shares issued (shares) | 750,000 | |||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||
Series F Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Ownership Interest Per Depositary Share | 1.00% | |||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||
Per annum dividend rate | 5.25% | |||||
Preferred stock | $ 742 | 742 | ||||
Series G Preferred Stock, Depository Share | ||||||
Class of Stock [Line Items] | ||||||
Depositary shares issued (shares) | 20,000,000 | |||||
Liquidation preference per share (USD per share) | $ 25 | |||||
Series G Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Ownership Interest Per Depositary Share | 0.025% | |||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||
Per annum dividend rate | 5.35% | |||||
Preferred stock | $ 493 | 493 | ||||
Series H Preferred Stock, Depository Share | ||||||
Class of Stock [Line Items] | ||||||
Depositary shares issued (shares) | 500,000 | |||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||
Series H Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Ownership Interest Per Depositary Share | 1.00% | |||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||
Per annum dividend rate | 5.625% | |||||
Preferred stock | $ 494 | $ 494 | ||||
London Interbank Offered Rate (LIBOR) | Series D Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Per annum dividend rate, basis spread on variable rate | 3.108% | |||||
London Interbank Offered Rate (LIBOR) | Series F Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Per annum dividend rate, basis spread on variable rate | 3.597% | |||||
London Interbank Offered Rate (LIBOR) | Series G Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Per annum dividend rate, basis spread on variable rate | 3.709% | |||||
London Interbank Offered Rate (LIBOR) | Series H Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Per annum dividend rate, basis spread on variable rate | 2.539% |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Class of Stock [Line Items] | |||||||
Preferred stock cash dividend | $ 32 | $ 44 | $ 50 | $ 55 | $ 76 | $ 105 | |
Series D Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | $ 1,475 | $ 1,475 | $ 2,950 | $ 2,950 | |||
Preferred stock cash dividend | $ 11 | $ 11 | $ 22 | $ 22 | |||
Series C Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | $ 0 | $ 1,313 | $ 1,313 | $ 2,626 | |||
Preferred stock cash dividend | $ 0 | $ 7 | $ 6 | $ 13 | |||
Series C Preferred Stock, Depository Share | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | $ 0 | $ 0.33 | $ 0.33 | $ 0.66 | |||
Series F Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | $ 0 | $ 0 | $ 2,625 | $ 2,625 | |||
Preferred stock cash dividend | $ 0 | $ 0 | $ 20 | $ 20 | |||
Series G Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | $ 1,338 | $ 1,338 | $ 2,676 | $ 2,676 | |||
Preferred stock cash dividend | $ 7 | $ 7 | $ 14 | $ 14 | |||
Series D Preferred Stock, Depository Share | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | $ 0.37 | $ 0.37 | $ 0.74 | $ 0.74 | |||
Series F Preferred Stock, Depository Share | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | 0 | 0 | 26.25 | 26.25 | |||
Series G Preferred Stock, Depository Share | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | $ 0.33 | $ 0.33 | $ 0.66 | $ 0.66 | |||
Subsequent Event | Series D Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | $ 1,475 | ||||||
Preferred stock cash dividend | $ 11 | ||||||
Subsequent Event | Series F Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | $ 2,625 | ||||||
Preferred stock cash dividend | $ 20 | ||||||
Subsequent Event | Series G Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | $ 1,338 | ||||||
Preferred stock cash dividend | $ 7 | ||||||
Subsequent Event | Series D Preferred Stock, Depository Share | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | $ 0.37 | ||||||
Subsequent Event | Series F Preferred Stock, Depository Share | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | 26.25 | ||||||
Subsequent Event | Series G Preferred Stock, Depository Share | |||||||
Class of Stock [Line Items] | |||||||
Preferred dividends declared (USD per share) | $ 0.33 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 15, 2020 | Dec. 15, 2019 | Sep. 30, 2018 | Apr. 30, 2016 | May 31, 2015 | Feb. 28, 2014 | |
Dividends Payable [Line Items] | ||||||||||||
Preferred stock cash dividend | $ 32 | $ 44 | $ 50 | $ 55 | $ 76 | $ 105 | ||||||
Cash dividends declared (in USD per share) | $ 0.52 | $ 0.52 | $ 0.47 | $ 0.47 | $ 1.04 | $ 0.94 | ||||||
Common stock dividends | $ 183 | $ 183 | $ 175 | $ 177 | $ 366 | $ 352 | ||||||
Series C Preferred Stock | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0 | $ 1,313 | $ 1,313 | $ 2,626 | ||||||||
Preferred stock cash dividend | $ 0 | $ 7 | $ 6 | $ 13 | ||||||||
Preferred stock, redemption amount | $ 500 | |||||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Series C Preferred Stock, Depository Share | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0 | $ 0.33 | $ 0.33 | $ 0.66 | ||||||||
Liquidation preference per share (USD per share) | 25 | |||||||||||
Series D Preferred Stock | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 1,475 | $ 1,475 | $ 2,950 | $ 2,950 | ||||||||
Preferred stock cash dividend | $ 11 | $ 11 | $ 22 | $ 22 | ||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Series D Preferred Stock, Depository Share | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0.37 | $ 0.37 | $ 0.74 | $ 0.74 | ||||||||
Liquidation preference per share (USD per share) | $ 25 | |||||||||||
Series E Preferred Stock | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0 | $ 1,500 | $ 0 | $ 3,000 | ||||||||
Preferred stock cash dividend | $ 0 | $ 11 | $ 0 | $ 22 | ||||||||
Preferred stock, redemption amount | $ 750 | |||||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Series E Preferred Stock, Depository Share | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0 | $ 0.38 | $ 0 | $ 0.76 | ||||||||
Liquidation preference per share (USD per share) | $ 25 | |||||||||||
Series F Preferred Stock | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0 | $ 0 | $ 2,625 | $ 2,625 | ||||||||
Preferred stock cash dividend | $ 0 | $ 0 | $ 20 | $ 20 | ||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Series F Preferred Stock, Depository Share | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0 | $ 0 | $ 26.25 | $ 26.25 | ||||||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||||||||
Series G Preferred Stock | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 1,338 | $ 1,338 | $ 2,676 | $ 2,676 | ||||||||
Preferred stock cash dividend | $ 7 | $ 7 | $ 14 | $ 14 | ||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Series G Preferred Stock, Depository Share | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0.33 | $ 0.33 | $ 0.66 | $ 0.66 | ||||||||
Liquidation preference per share (USD per share) | $ 25 | |||||||||||
Series H Preferred Stock | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 2,813,000,000 | $ 2,813 | $ 2,813,000,000 | |||||||||
Preferred stock cash dividend | $ 14 | $ 14 | $ 14 | $ 14 | ||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Series H Preferred Stock, Depository Share | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 28.13 | $ 28,130,000 | $ 28.13 | $ 28,130,000 | ||||||||
Liquidation preference per share (USD per share) | $ 1,000 |
Shareholders' Equity - Preferre
Shareholders' Equity - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 15, 2020 | Dec. 31, 2019 | Dec. 15, 2019 | Apr. 30, 2016 | May 31, 2015 | Feb. 28, 2014 | |
Class of Stock [Line Items] | ||||||||||||
Preferred stock cash dividend | $ 32 | $ 44 | $ 50 | $ 55 | $ 76 | $ 105 | ||||||
Series E Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0 | $ 1,500 | $ 0 | $ 3,000 | ||||||||
Preferred stock cash dividend | $ 0 | $ 11 | $ 0 | $ 22 | ||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Series E Preferred Stock, Depository Share | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0 | $ 0.38 | $ 0 | $ 0.76 | ||||||||
Liquidation preference per share (USD per share) | $ 25 | |||||||||||
Series C Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0 | $ 1,313 | $ 1,313 | $ 2,626 | ||||||||
Preferred stock cash dividend | $ 0 | $ 7 | $ 6 | $ 13 | ||||||||
Liquidation preference per share (USD per share) | 100,000 | |||||||||||
Preferred stock, shares outstanding (in shares) | 5,000 | 5,000 | 5,000 | |||||||||
Series C Preferred Stock, Depository Share | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0 | $ 0.33 | $ 0.33 | $ 0.66 | ||||||||
Liquidation preference per share (USD per share) | $ 25 | |||||||||||
Series D Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 1,475 | $ 1,475 | $ 2,950 | $ 2,950 | ||||||||
Preferred stock cash dividend | $ 11 | $ 11 | $ 22 | $ 22 | ||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Preferred stock, shares outstanding (in shares) | 7,500 | 7,500 | 7,500 | |||||||||
Series D Preferred Stock, Depository Share | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0.37 | $ 0.37 | $ 0.74 | $ 0.74 | ||||||||
Liquidation preference per share (USD per share) | $ 25 | |||||||||||
Series F Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0 | $ 0 | $ 2,625 | $ 2,625 | ||||||||
Preferred stock cash dividend | $ 0 | $ 0 | $ 20 | $ 20 | ||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Preferred stock, shares outstanding (in shares) | 7,500 | 7,500 | 7,500 | |||||||||
Series F Preferred Stock, Depository Share | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0 | $ 0 | $ 26.25 | $ 26.25 | ||||||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||||||||
Series G Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 1,338 | $ 1,338 | $ 2,676 | $ 2,676 | ||||||||
Preferred stock cash dividend | $ 7 | $ 7 | $ 14 | $ 14 | ||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Preferred stock, shares outstanding (in shares) | 5,000 | 5,000 | 5,000 | |||||||||
Series G Preferred Stock, Depository Share | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0.33 | $ 0.33 | $ 0.66 | $ 0.66 | ||||||||
Liquidation preference per share (USD per share) | $ 25 |
Shareholders' Equity - Common S
Shareholders' Equity - Common Stock (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Amount of common stock authorized for repurchase | $ 2,000,000,000 | $ 2,000,000,000 | ||||
2019 Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock repurchased | $ 0 | $ 500,000,000 | ||||
2018 Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Amount of common stock authorized for repurchase | $ 1,200,000,000 | |||||
Common stock repurchased | $ 300,000,000 | $ 300,000,000 | $ 600,000,000 |
Shareholders' Equity - Schedu_3
Shareholders' Equity - Schedule of Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
2018 Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares Acquired (in shares) | 4.6 | 8.8 | |||
Average Cost per Share (USD per share) | $ 65.25 | $ 67.97 | |||
Total Acquired | $ 300 | $ 300 | $ 600 | ||
2019 Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares Acquired (in shares) | 0 | 6.5 | |||
Average Cost per Share (USD per share) | $ 0 | $ 77.35 | |||
Total Acquired | $ 0 | $ 500 |
Shareholders' Equity - Schedu_4
Shareholders' Equity - Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Equity [Abstract] | |||
Net unrealized (losses) on cash flow hedges | $ 53 | $ (70) | |
Net unrealized gains on available-for-sale securities portfolio | 899 | 372 | |
Net unrealized gains related to reclassified available-for-sale securities | 7 | 57 | |
Net unrealized gains on available-for-sale securities | 906 | 429 | |
Net unrealized (losses) on available-for-sale securities designated in fair value hedges | (40) | (51) | |
Net unrealized gains on hedges of net investments in non-U.S. subsidiaries | 68 | 34 | |
Non-credit impairment on held-to-maturity securities previously identified under ASC 320 | (2) | (2) | |
Net unrealized (losses) on retirement plans | (173) | (179) | |
Foreign currency translation | (1,242) | (1,035) | |
Total | $ (430) | $ (876) | $ (874) |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 24,737 | $ 24,431 | $ 24,737 | |
Other comprehensive income (loss) before reclassifications | 411 | 568 | ||
Reclassification of certain tax effects | (84) | |||
Amounts reclassified into (out of) earnings | 35 | (2) | ||
Other comprehensive income (loss) | 446 | 482 | ||
Ending balance | 25,038 | 24,873 | 25,454 | |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,356) | (876) | (1,356) | |
Reclassification of certain tax effects | [1] | (84) | ||
Ending balance | (1,180) | (430) | (874) | |
Net Unrealized Gains (Losses) on Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (89) | (70) | (89) | |
Other comprehensive income (loss) before reclassifications | 103 | 18 | ||
Reclassification of certain tax effects | (6) | |||
Amounts reclassified into (out of) earnings | 20 | 7 | ||
Other comprehensive income (loss) | 123 | 19 | ||
Ending balance | 53 | (70) | ||
Net Unrealized Gains (Losses) on Available-for-Sale Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (175) | 409 | (175) | |
Other comprehensive income (loss) before reclassifications | 456 | 532 | ||
Reclassification of certain tax effects | 21 | |||
Amounts reclassified into (out of) earnings | 1 | 0 | ||
Other comprehensive income (loss) | 457 | 553 | ||
Ending balance | 866 | 378 | ||
Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 16 | 46 | 16 | |
Other comprehensive income (loss) before reclassifications | 22 | 21 | ||
Reclassification of certain tax effects | (3) | |||
Amounts reclassified into (out of) earnings | 0 | 0 | ||
Other comprehensive income (loss) | 22 | 18 | ||
Ending balance | 68 | 34 | ||
Other-Than-Temporary Impairment on Held-to-Maturity Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (2) | (2) | (2) | |
Other comprehensive income (loss) before reclassifications | 0 | 2 | ||
Reclassification of certain tax effects | (1) | |||
Amounts reclassified into (out of) earnings | 0 | (1) | ||
Other comprehensive income (loss) | 0 | 0 | ||
Ending balance | (2) | (2) | ||
Net Unrealized Losses on Retirement Plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (143) | (187) | (143) | |
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Reclassification of certain tax effects | (28) | |||
Amounts reclassified into (out of) earnings | 14 | (8) | ||
Other comprehensive income (loss) | 14 | (36) | ||
Ending balance | (173) | (179) | ||
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (963) | (1,072) | (963) | |
Other comprehensive income (loss) before reclassifications | (170) | (5) | ||
Reclassification of certain tax effects | (67) | |||
Amounts reclassified into (out of) earnings | 0 | 0 | ||
Other comprehensive income (loss) | (170) | (72) | ||
Ending balance | $ (1,242) | $ (1,035) | ||
[1] | Represents the reclassification from accumulated other comprehensive income into retained earnings as a result of our adoption of ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of 2019. |
Shareholders' Equity - Adjustme
Shareholders' Equity - Adjustments to Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Class of Stock [Line Items] | ||||||
Gains from sales of available-for-sale securities, net | $ 0 | $ 0 | $ 2,000,000 | $ 0 | ||
Net interest income | 559,000,000 | 613,000,000 | 1,223,000,000 | 1,286,000,000 | ||
Compensation and employee benefits expenses | 1,051,000,000 | 1,084,000,000 | 2,259,000,000 | 2,313,000,000 | ||
Net income | 694,000,000 | $ 634,000,000 | 587,000,000 | $ 508,000,000 | 1,328,000,000 | 1,095,000,000 |
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Class of Stock [Line Items] | ||||||
Net income | 17,000,000 | 4,000,000 | 35,000,000 | (2,000,000) | ||
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Available-for-Sale Securities | ||||||
Class of Stock [Line Items] | ||||||
Gains from sales of available-for-sale securities, net | 0 | 0 | 1,000,000 | 0 | ||
Net realized gains from sales of available-for-sale securities, taxes | 0 | 0 | 1,000,000 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income | Other-Than-Temporary Impairment on Securities | ||||||
Class of Stock [Line Items] | ||||||
Losses reclassified (from) to other comprehensive income | 0 | (1,000,000) | ||||
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, taxes | 0 | 0 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | ||||||
Class of Stock [Line Items] | ||||||
Net interest income | 15,000,000 | 4,000,000 | 20,000,000 | 7,000,000 | ||
Gain (loss) from cash flow hedge reclassified from accumulated other comprehensive income, taxes | 5,000,000 | 1,000,000 | 7,000,000 | 3,000,000 | ||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Actuarial Losses | ||||||
Class of Stock [Line Items] | ||||||
Compensation and employee benefits expenses | 2,000,000 | 0 | 14,000,000 | (8,000,000) | ||
Amortization of actuarial losses, taxes | $ 0 | $ 0 | $ 4,000,000 | $ (4,000,000) |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Retained earnings | $ 22,794 | $ 21,918 |
Capital ratio: required common equity tier 1 capital | 8.00% | 8.50% |
Capital ratio: required tier 1 capital | 0.095 | 0.100 |
Capital ratio: required total capital | 0.115 | 0.120 |
Basel III Advanced Approaches | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,683 | $ 10,636 |
Retained earnings | 22,794 | 21,918 |
Accumulated other comprehensive income (loss) | (430) | (870) |
Treasury stock, at cost | (10,645) | (10,209) |
Total | 22,402 | 21,475 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (8,973) | (9,112) |
Other adjustments | (261) | (150) |
Common equity tier 1 capital | 13,168 | 12,213 |
Preferred stock | 2,471 | 2,962 |
Tier 1 capital | 15,639 | 15,175 |
Qualifying subordinated long-term debt | 964 | 1,095 |
Allowance for credit losses | 47 | 5 |
Total capital | 16,650 | 16,275 |
Credit risk | 57,975 | 54,763 |
Operational risk | 44,225 | 47,963 |
Securitizations | 1,563 | 1,638 |
Equity | 103,763 | 104,364 |
All other | $ 256,418 | $ 219,624 |
Common equity tier 1 capital | 12.70% | 11.70% |
Tier 1 capital | 0.151 | 0.145 |
Total capital | 0.160 | 0.156 |
Basel III Standardized Approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,683 | $ 10,636 |
Retained earnings | 22,794 | 21,918 |
Accumulated other comprehensive income (loss) | (430) | (870) |
Treasury stock, at cost | (10,645) | (10,209) |
Total | 22,402 | 21,475 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (8,973) | (9,112) |
Other adjustments | (261) | (150) |
Common equity tier 1 capital | 13,168 | 12,213 |
Preferred stock | 2,471 | |
Tier 1 capital | 15,639 | 15,175 |
Qualifying subordinated long-term debt | 964 | 1,095 |
Allowance for credit losses | 163 | 90 |
Total capital | 16,766 | 16,360 |
Credit risk | 105,276 | 102,367 |
Securitizations | 1,563 | 1,638 |
Equity | 106,839 | 104,005 |
All other | $ 256,418 | $ 219,624 |
Common equity tier 1 capital | 12.30% | 11.70% |
Tier 1 capital | 0.146 | 0.146 |
Total capital | 0.157 | 0.157 |
State Street Bank | Basel III Advanced Approaches | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 12,893 | $ 12,893 |
Retained earnings | 13,103 | 13,218 |
Accumulated other comprehensive income (loss) | (174) | (654) |
Treasury stock, at cost | 0 | 0 |
Total | 25,822 | 25,457 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (8,705) | (8,839) |
Other adjustments | (119) | (1) |
Common equity tier 1 capital | 16,998 | 16,617 |
Preferred stock | 0 | 0 |
Tier 1 capital | 16,998 | 16,617 |
Qualifying subordinated long-term debt | 969 | 1,099 |
Allowance for credit losses | 55 | 3 |
Total capital | 18,022 | 17,719 |
Credit risk | 54,016 | 51,610 |
Operational risk | 43,738 | 44,138 |
Securitizations | 1,563 | 1,638 |
Equity | 99,317 | 97,386 |
All other | $ 252,725 | $ 216,397 |
Common equity tier 1 capital | 17.10% | 17.10% |
Tier 1 capital | 0.171 | 0.171 |
Total capital | 0.181 | 0.182 |
State Street Bank | Basel III Standardized Approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 12,893 | $ 12,893 |
Retained earnings | 13,103 | 13,218 |
Accumulated other comprehensive income (loss) | (174) | (654) |
Treasury stock, at cost | 0 | 0 |
Total | 25,822 | 25,457 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (8,705) | (8,839) |
Other adjustments | (119) | (1) |
Common equity tier 1 capital | 16,998 | 16,617 |
Preferred stock | 0 | 0 |
Tier 1 capital | 16,998 | 16,617 |
Qualifying subordinated long-term debt | 969 | 1,099 |
Allowance for credit losses | 163 | 90 |
Total capital | 18,130 | 17,806 |
Credit risk | 101,462 | 98,979 |
Securitizations | 1,563 | 1,638 |
Equity | 103,025 | 100,617 |
All other | $ 252,725 | $ 216,397 |
Common equity tier 1 capital | 16.50% | 16.50% |
Tier 1 capital | 0.165 | 0.165 |
Total capital | 0.176 | 0.177 |
Net Interest Income - Component
Net Interest Income - Components of Interest Revenue and Interest Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest income: | ||||
Interest-bearing deposits with banks | $ 4 | $ 109 | $ 85 | $ 228 |
Investment securities: | ||||
U.S. Treasury and federal agencies | 315 | 360 | 671 | 729 |
State and political subdivisions | 9 | 13 | 20 | 25 |
Other investments | 92 | 126 | 209 | 248 |
Investment securities purchased under money market liquidity facility | 70 | 0 | 78 | 0 |
Total investment securities | 486 | 499 | 978 | 1,002 |
Securities purchased under resale agreements | 24 | 90 | 89 | 188 |
Loans | 156 | 195 | 340 | 393 |
Other interest-earning assets | 4 | 114 | 50 | 223 |
Total interest income | 674 | 1,007 | 1,542 | 2,034 |
Interest expense: | ||||
Interest-bearing deposits | (54) | 209 | 14 | 380 |
Investment securities purchased under money market liquidity facility | 58 | 0 | 64 | 0 |
Securities sold under repurchase agreements | 1 | 8 | 3 | 20 |
Other short-term borrowings | 5 | 6 | 15 | 10 |
Long-term debt | 95 | 107 | 183 | 213 |
Other interest-bearing liabilities | 10 | 64 | 40 | 125 |
Total interest expense | 115 | 394 | 319 | 748 |
Net interest income | $ 559 | $ 613 | $ 1,223 | $ 1,286 |
Expenses - Schedule of Expenses
Expenses - Schedule of Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other Expenses [Abstract] | ||||
Professional services | $ 91 | $ 85 | $ 172 | $ 165 |
Regulatory fees and assessments | 17 | 16 | 29 | 36 |
Securities processing | 15 | 19 | 30 | 28 |
Sales advertising public relations | 12 | 27 | 30 | 54 |
Bank operations | 4 | 10 | 13 | 21 |
Insurance | 3 | 4 | 8 | 9 |
Other | 101 | 113 | 191 | 236 |
Total other expenses | $ 243 | $ 274 | $ 473 | $ 549 |
Expenses - Narrative (Details)
Expenses - Narrative (Details) - Charles River Development - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 39 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||
Acquisitions costs | $ 12 | $ 10 | $ 23 | $ 23 | |
Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Acquisitions costs | $ 200 |
Expenses - Restructuring Reserv
Expenses - Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 164 | $ 198 | $ 259 | $ 341 |
Accruals for Beacon | 2 | (4) | ||
Accruals for Repositioning Charges | 0 | |||
Payments and Other Adjustments | (26) | (34) | (52) | (78) |
Ending balance | 138 | 164 | 209 | 259 |
Employee Related Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 157 | 190 | 246 | 303 |
Accruals for Beacon | 2 | (4) | ||
Accruals for Repositioning Charges | 0 | |||
Payments and Other Adjustments | (25) | (33) | (51) | (53) |
Ending balance | 132 | 157 | 197 | 246 |
Real Estate Actions | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 6 | 7 | 12 | 37 |
Accruals for Beacon | 0 | 0 | ||
Accruals for Repositioning Charges | 0 | |||
Payments and Other Adjustments | (1) | (1) | (1) | (25) |
Ending balance | 5 | 6 | 11 | 12 |
Asset and Other Write-offs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 1 | 1 | 1 | 1 |
Accruals for Beacon | 0 | 0 | ||
Accruals for Repositioning Charges | 0 | |||
Payments and Other Adjustments | 0 | 0 | 0 | 0 |
Ending balance | $ 1 | $ 1 | $ 1 | $ 1 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 694 | $ 634 | $ 587 | $ 508 | $ 1,328 | $ 1,095 |
Preferred stock dividends | (32) | (50) | (85) | (105) | ||
Dividends and undistributed earnings allocated to participating securities | 0 | 0 | (1) | (1) | ||
Net income available to common shareholders | $ 662 | $ 537 | $ 1,242 | $ 989 | ||
Basic average common shares | 352,157 | 373,773 | 352,952 | 375,832 | ||
Effect of dilutive securities: common stock options and common stock awards (in shares) | 4,256 | 3,804 | 4,076 | 3,633 | ||
Diluted average common shares | 356,413 | 377,577 | 357,028 | 379,465 | ||
Anti-dilutive securities (in shares) | 2,989 | 3,345 | 1,580 | 2,665 | ||
Earnings per common share: | ||||||
Basic (in USD per share) | $ 1.88 | $ 1.44 | $ 3.52 | $ 2.63 | ||
Diluted (in USD per share) | $ 1.86 | $ 1.42 | $ 3.48 | $ 2.61 |
Line of Business Information -
Line of Business Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of lines of business | 2 |
Line of Business Information _2
Line of Business Information - Summary of Line of Business (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 1,272 | $ 1,252 | $ 2,559 | $ 2,503 |
Management fees | 425 | 441 | 874 | 861 |
Foreign exchange trading services | 344 | 273 | 803 | 553 |
Securities finance | 92 | 126 | 184 | 244 |
Software and processing fees | 245 | 168 | 357 | 359 |
Total fee revenue | 2,378 | 2,260 | 4,777 | 4,520 |
Net interest income | 559 | 613 | 1,223 | 1,286 |
Total other income | 0 | 0 | 2 | (1) |
Total revenue | 2,937 | 2,873 | 6,002 | 5,805 |
Provision for credit losses | 52 | 1 | 88 | 5 |
Total expenses | 2,082 | 2,154 | 4,337 | 4,447 |
Income before income tax expense | $ 803 | $ 718 | $ 1,577 | $ 1,353 |
Pre-tax margin | 27.00% | 25.00% | 26.00% | 23.00% |
Operating Segments | Investment Servicing | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 1,272 | $ 1,252 | $ 2,559 | $ 2,503 |
Management fees | 0 | 0 | 0 | 0 |
Foreign exchange trading services | 312 | 240 | 746 | 486 |
Securities finance | 88 | 122 | 177 | 239 |
Software and processing fees | 229 | 163 | 366 | 343 |
Total fee revenue | 1,901 | 1,777 | 3,848 | 3,571 |
Net interest income | 571 | 623 | 1,234 | 1,302 |
Total other income | 2 | (1) | ||
Total revenue | 2,472 | 2,400 | 5,084 | 4,872 |
Provision for credit losses | 52 | 1 | 88 | 5 |
Total expenses | 1,717 | 1,765 | 3,576 | 3,629 |
Income before income tax expense | $ 703 | $ 634 | $ 1,420 | $ 1,238 |
Pre-tax margin | 28.00% | 26.00% | 28.00% | 25.00% |
Operating Segments | Investment Management | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 0 | $ 0 | $ 0 | $ 0 |
Management fees | 425 | 441 | 874 | 861 |
Foreign exchange trading services | 32 | 33 | 57 | 67 |
Securities finance | 4 | 4 | 7 | 5 |
Software and processing fees | 16 | 5 | (9) | 16 |
Total fee revenue | 477 | 483 | 929 | 949 |
Net interest income | (12) | (10) | (11) | (16) |
Total other income | 0 | 0 | ||
Total revenue | 465 | 473 | 918 | 933 |
Provision for credit losses | 0 | 0 | 0 | 0 |
Total expenses | 353 | 377 | 738 | 783 |
Income before income tax expense | $ 112 | $ 96 | $ 180 | $ 150 |
Pre-tax margin | 24.00% | 20.00% | 20.00% | 16.00% |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 0 | $ 0 | $ 0 | $ 0 |
Management fees | 0 | 0 | 0 | 0 |
Foreign exchange trading services | 0 | 0 | 0 | 0 |
Securities finance | 0 | 0 | 0 | 0 |
Software and processing fees | 0 | 0 | 0 | 0 |
Total fee revenue | 0 | 0 | 0 | 0 |
Net interest income | 0 | 0 | 0 | 0 |
Total other income | 0 | 0 | ||
Total revenue | 0 | 0 | 0 | 0 |
Provision for credit losses | 0 | 0 | 0 | 0 |
Total expenses | 12 | 12 | 23 | 35 |
Income before income tax expense | $ (12) | $ (12) | $ (23) | $ (35) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of lines of business | segment | 2 | |
Accrued Interest and Fees Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables related to contracts with customers | $ | $ 2,830 | $ 2,770 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 2,937 | $ 2,873 | $ 6,002 | $ 5,805 |
Servicing fees | 1,272 | 1,252 | 2,559 | 2,503 |
Management fees | 425 | 441 | 874 | 861 |
Foreign exchange trading services | 344 | 273 | 803 | 553 |
Securities finance | 92 | 126 | 184 | 244 |
Software and processing fees | 245 | 168 | 357 | 359 |
Total fee revenue | 2,378 | 2,260 | 4,777 | 4,520 |
Net interest income | 559 | 613 | 1,223 | 1,286 |
Total fee revenue | 0 | 0 | 2 | (1) |
Operating Segments | Investment Servicing | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 1,581 | 1,513 | 3,132 | 3,036 |
All other revenue | 891 | 887 | 1,952 | 1,836 |
Total revenue | 2,472 | 2,400 | 5,084 | 4,872 |
Servicing fees | 1,272 | 1,252 | 2,559 | 2,503 |
Management fees | 0 | 0 | 0 | 0 |
Foreign exchange trading services | 312 | 240 | 746 | 486 |
Securities finance | 88 | 122 | 177 | 239 |
Software and processing fees | 229 | 163 | 366 | 343 |
Total fee revenue | 1,901 | 1,777 | 3,848 | 3,571 |
Net interest income | 571 | 623 | 1,234 | 1,302 |
Total fee revenue | 2 | (1) | ||
Operating Segments | Investment Servicing | Servicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 1,272 | 1,252 | 2,559 | 2,503 |
All other revenue | 0 | 0 | 0 | 0 |
Servicing fees | 1,272 | 1,252 | 2,559 | 2,503 |
Operating Segments | Investment Servicing | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | 0 | 0 |
All other revenue | 0 | 0 | 0 | 0 |
Management fees | 0 | 0 | 0 | 0 |
Operating Segments | Investment Servicing | Foreign exchange trading services | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 95 | 82 | 195 | 168 |
All other revenue | 217 | 158 | 551 | 318 |
Foreign exchange trading services | 312 | 240 | 746 | 486 |
Operating Segments | Investment Servicing | Securities finance | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 63 | 75 | 120 | 145 |
All other revenue | 25 | 47 | 57 | 94 |
Securities finance | 88 | 122 | 177 | 239 |
Operating Segments | Investment Servicing | Processing fees and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 151 | 104 | 258 | 220 |
All other revenue | 78 | 59 | 108 | 123 |
Software and processing fees | 229 | 163 | 366 | 343 |
Operating Segments | Investment Servicing | Total fee revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 1,581 | 1,513 | 3,132 | 3,036 |
All other revenue | 320 | 264 | 716 | 535 |
Total fee revenue | 1,901 | 1,777 | 3,848 | 3,571 |
Operating Segments | Investment Servicing | Net interest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | 0 | 0 |
All other revenue | 571 | 623 | 1,234 | 1,302 |
Net interest income | 571 | 623 | 1,234 | 1,302 |
Operating Segments | Investment Servicing | Total other income | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 2 | (1) | ||
Total fee revenue | 2 | (1) | ||
Operating Segments | Investment Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 457 | 474 | 931 | 928 |
All other revenue | 8 | (1) | (13) | 5 |
Total revenue | 465 | 473 | 918 | 933 |
Servicing fees | 0 | 0 | 0 | 0 |
Management fees | 425 | 441 | 874 | 861 |
Foreign exchange trading services | 32 | 33 | 57 | 67 |
Securities finance | 4 | 4 | 7 | 5 |
Software and processing fees | 16 | 5 | (9) | 16 |
Total fee revenue | 477 | 483 | 929 | 949 |
Net interest income | (12) | (10) | (11) | (16) |
Total fee revenue | 0 | 0 | ||
Operating Segments | Investment Management | Servicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | 0 | 0 |
All other revenue | 0 | 0 | 0 | 0 |
Servicing fees | 0 | 0 | 0 | 0 |
Operating Segments | Investment Management | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 425 | 441 | 874 | 861 |
All other revenue | 0 | 0 | 0 | 0 |
Management fees | 425 | 441 | 874 | 861 |
Operating Segments | Investment Management | Foreign exchange trading services | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 32 | 33 | 57 | 67 |
All other revenue | 0 | 0 | 0 | 0 |
Foreign exchange trading services | 32 | 33 | 57 | 67 |
Operating Segments | Investment Management | Securities finance | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | 0 | 0 |
All other revenue | 4 | 4 | 7 | 5 |
Securities finance | 4 | 4 | 7 | 5 |
Operating Segments | Investment Management | Processing fees and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | 0 | 0 |
All other revenue | 16 | 5 | (9) | 16 |
Software and processing fees | 16 | 5 | (9) | 16 |
Operating Segments | Investment Management | Total fee revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 457 | 474 | 931 | 928 |
All other revenue | 20 | 9 | (2) | 21 |
Total fee revenue | 477 | 483 | 929 | 949 |
Operating Segments | Investment Management | Net interest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | 0 | 0 |
All other revenue | (12) | (10) | (11) | (16) |
Net interest income | $ (12) | $ (10) | (11) | (16) |
Operating Segments | Investment Management | Total other income | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 0 | 0 | ||
Total fee revenue | $ 0 | $ 0 |
Non-U.S. Activities - Schedule
Non-U.S. Activities - Schedule Of Results From Non-U.S. Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 2,937 | $ 2,873 | $ 6,002 | $ 5,805 |
Income before income taxes | 803 | 718 | 1,577 | 1,353 |
Non-U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,269 | 1,290 | 2,629 | 2,623 |
Income before income taxes | 244 | 314 | 514 | 616 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,668 | 1,583 | 3,373 | 3,182 |
Income before income taxes | $ 559 | $ 404 | $ 1,063 | $ 737 |
Non-U.S. Activities - Narrative
Non-U.S. Activities - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 280,242 | $ 245,610 | |
Non-U.S. | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 94,290 | $ 85,940 |