Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 29, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-07511 | ||
Entity Registrant Name | STATE STREET CORPORATION | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 22,340 | ||
Entity Common Stock, Shares Outstanding | 351,786,357 | ||
Documents Incorporated by Reference | The registrant’s definitive Proxy Statement for the 2021 Annual Meeting of Shareholders to be filed pursuant to Regulation 14A on or before April 30, 2021 (Part III). | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000093751 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fee revenue: | |||
Servicing fees | $ 5,167 | $ 5,074 | $ 5,421 |
Management fees | 1,880 | 1,824 | 1,899 |
Foreign exchange trading services | 1,363 | 1,058 | 1,153 |
Securities finance | 356 | 471 | 543 |
Software and processing fees | 733 | 720 | 438 |
Total fee revenue | 9,499 | 9,147 | 9,454 |
Net interest income: | |||
Interest income | 2,575 | 3,941 | 3,662 |
Interest expense | 375 | 1,375 | 991 |
Net interest income | 2,200 | 2,566 | 2,671 |
Other income: | |||
Gains (losses) from sales of available-for-sale securities, net | 4 | (1) | 9 |
Other income | 0 | 44 | (3) |
Total other income | 4 | 43 | 6 |
Total revenue | 11,703 | 11,756 | 12,131 |
Provision for credit losses | 88 | 10 | 15 |
Expenses: | |||
Compensation and employee benefits | 4,450 | 4,541 | 4,780 |
Information systems and communications | 1,550 | 1,465 | 1,324 |
Transaction processing services | 978 | 983 | 985 |
Occupancy | 489 | 470 | 500 |
Acquisition and restructuring costs | 50 | 77 | 24 |
Amortization of other intangible assets | 234 | 236 | 226 |
Other | 965 | 1,262 | 1,176 |
Total expenses | 8,716 | 9,034 | 9,015 |
Income before income tax expense | 2,899 | 2,712 | 3,101 |
Income tax expense | 479 | 470 | 508 |
Net income | 2,420 | 2,242 | 2,593 |
Net income available to common shareholders | $ 2,257 | $ 2,009 | $ 2,404 |
Earnings per common share: | |||
Basic (in USD per share) | $ 6.40 | $ 5.43 | $ 6.46 |
Diluted (in USD per share) | $ 6.32 | $ 5.38 | $ 6.39 |
Average common shares outstanding (in thousands): | |||
Basic (in shares) | 352,865 | 369,911 | 371,983 |
Diluted (in shares) | 357,106 | 373,666 | 376,476 |
Cash dividends declared (in USD per share) | $ 2.08 | $ 1.98 | $ 1.78 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,420 | $ 2,242 | $ 2,593 | |
Other comprehensive income (loss), net of related taxes: | ||||
Foreign currency translation, net of related taxes of ($40), $2 and ($8), respectively | 488 | (9) | (67) | |
Net unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment and net of related taxes of $165, $212 and ($134), respectively | 436 | 545 | (302) | |
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes of $1, $6 and $9, respectively | 3 | 18 | 24 | |
Non-credit impairment on held-to-maturity securities previously identified under ASC 320, net of related taxes of zero, $1 and $2, respectively (1) | [1] | 0 | 1 | 4 |
Net unrealized gains (losses) on cash flow hedges, net of related taxes of $46, $9 and ($17), respectively | 127 | 25 | (33) | |
Net unrealized gains (losses) on retirement plans, net of related taxes of $3, ($8) and $8, respectively | 9 | (16) | 27 | |
Other comprehensive income (loss) | 1,063 | 564 | (347) | |
Total comprehensive income | $ 3,483 | $ 2,806 | $ 2,246 | |
[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. |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation, Taxes | $ (40,000,000) | $ 2,000,000 | $ (8,000,000) |
Change in net unrealized gains (losses) on available-for-sale securities, Taxes | 165,000,000 | 212,000,000 | (134,000,000) |
Change in net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, Taxes | 1,000,000 | 6,000,000 | 9,000,000 |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, Taxes | 0 | 1,000,000 | 2,000,000 |
Change in net unrealized gains (losses) on cash flow hedges, Taxes | 46,000,000 | 9,000,000 | (17,000,000) |
Change in unrealized gains (losses) on retirement plans, Taxes | $ 3,000,000 | $ (8,000,000) | $ 8,000,000 |
Consolidated Statement of Condi
Consolidated Statement of Condition - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and due from banks | $ 3,467 | $ 3,302 |
Interest-bearing deposits with banks | 116,960 | 68,965 |
Securities purchased under resale agreements | 3,106 | 1,487 |
Trading account assets | 815 | 914 |
Investment securities available-for-sale | 59,048 | 53,815 |
Investment securities held-to-maturity purchased under money market liquidity facility (less allowance for credit losses of $1) (fair value of $3,304) | 3,299 | 0 |
Investment securities held-to-maturity (less allowance for credit losses of $2) (fair value of $50,003 and $42,157) | 48,929 | 41,782 |
Loans (less allowance for credit losses on loans of $122 and $74) | 27,803 | 26,235 |
Premises and equipment (net of accumulated depreciation of $4,825 and $4,367) | 2,154 | 2,282 |
Accrued interest and fees receivable | 3,105 | 3,231 |
Goodwill | 7,683 | 7,556 |
Other intangible assets | 1,827 | 2,030 |
Other assets | 36,510 | 34,011 |
Total assets | 314,706 | 245,610 |
Deposits: | ||
Non-interest-bearing | 49,439 | 34,031 |
Interest-bearing - U.S. | 102,331 | 77,504 |
Interest-bearing - non-U.S. | 88,028 | 70,337 |
Total deposits | 239,798 | 181,872 |
Securities sold under repurchase agreements | 3,413 | 1,102 |
Short term borrowings under money market liquidity facility | 3,302 | 0 |
Other short-term borrowings | 685 | 839 |
Accrued expenses and other liabilities | 27,503 | 24,857 |
Long-term debt | 13,805 | 12,509 |
Total liabilities | 288,506 | 221,179 |
Commitments, guarantees and contingencies (Notes 12 and 13) | ||
Shareholders’ equity: | ||
Common stock, $1 par, 750,000,000 shares authorized: 503,879,642 and 503,879,642 shares issued, and 357,389,416 and 379,946,724 shares outstanding | 504 | 504 |
Surplus | 10,205 | 10,132 |
Retained earnings | 23,442 | 21,918 |
Accumulated other comprehensive income (loss) | 187 | (876) |
Treasury stock, at cost (150,723,363 and 146,490,226 shares) | (10,609) | (10,209) |
Total shareholders’ equity | 26,200 | 24,431 |
Total liabilities and shareholders' equity | $ 314,706 | $ 245,610 |
Common stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, no par value (in USD per share) | $ 0 | $ 0 |
Series C Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, Series G, 5,000 shares issued and outstanding, and Series H, 5,000 shares issued and outstanding | $ 0 | $ 491 |
Series D Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, Series G, 5,000 shares issued and outstanding, and Series H, 5,000 shares issued and outstanding | 742 | 742 |
Series F Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, Series G, 5,000 shares issued and outstanding, and Series H, 5,000 shares issued and outstanding | 742 | 742 |
Series G Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, Series G, 5,000 shares issued and outstanding, and Series H, 5,000 shares issued and outstanding | 493 | 493 |
Series H Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, Series G, 5,000 shares issued and outstanding, and Series H, 5,000 shares issued and outstanding | $ 494 | $ 494 |
Consolidated Statement of Con_2
Consolidated Statement of Condition (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets, Current [Abstract] | ||
Allowance for credit losses on all HTM investment securities | $ 1 | |
Investment securities held-to-maturity under money market liquidity facility, fair value | 3,304 | |
Allowance for credit losses on HTM investment securities excluding MMF | 2 | |
Investment securities held-to-maturity | 50,003 | $ 42,157 |
Allowance for credit loss | 122 | 74 |
Accumulated depreciation | $ 4,825 | $ 4,367 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, no par value (in USD per share) | $ 0 | $ 0 |
Preferred stock authorized (in shares) | 3,500,000 | |
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 750,000,000 | |
Common stock, shares issued (in shares) | 503,879,642 | 503,879,642 |
Common stock, shares outstanding (in shares) | 353,156,279 | 357,389,416 |
Treasury stock, shares (in shares) | 150,723,363 | 146,490,226 |
Series C Preferred Stock | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares issued (in shares) | 5,000 | |
Preferred stock, shares outstanding (in shares) | 5,000 | |
Series D Preferred Stock | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares issued (in shares) | 7,500 | |
Preferred stock, shares outstanding (in shares) | 7,500 | |
Series F Preferred Stock | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares issued (in shares) | 7,500 | |
Preferred stock, shares outstanding (in shares) | 7,500 | |
Series G Preferred Stock | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares issued (in shares) | 5,000 | |
Preferred stock, shares outstanding (in shares) | 5,000 | |
Series H Preferred Stock | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares issued (in shares) | 5,000 | |
Preferred stock, shares outstanding (in shares) | 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 | ||
Beginning balance at Dec. 31, 2017 | $ 22,270 | $ 3,196 | $ 504 | $ 9,799 | $ 18,809 | $ (1,009) | $ (9,029) | ||
Beginning balance (shares) at Dec. 31, 2017 | 503,880 | 136,230 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,593 | 2,593 | |||||||
Other comprehensive income (loss) | (347) | (347) | |||||||
Preferred stock issued | 494 | 494 | |||||||
Common stock issued | 1,150 | 586 | $ 564 | ||||||
Common stock issued (in shares) | (13,244) | ||||||||
Cash dividends declared: | |||||||||
Common stock dividends | (665) | (665) | |||||||
Preferred stock cash dividend | (188) | (188) | |||||||
Common stock acquired (shares) | 3,324 | ||||||||
Common stock acquired | (350) | $ (350) | |||||||
Common stock awards exercised (shares) | (2,389) | ||||||||
Common stock awards exercised | 145 | 44 | $ 101 | ||||||
Other (shares) | 12 | ||||||||
Other | (365) | (368) | 4 | $ (1) | |||||
Ending balance at Dec. 31, 2018 | 24,737 | 3,690 | $ 504 | 10,061 | 20,553 | (1,356) | $ (8,715) | ||
Ending balance (shares) at Dec. 31, 2018 | 503,880 | 123,933 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,242 | 2,242 | |||||||
Reclassification of certain tax effects | (84) | 84 | [1] | (84) | [1] | ||||
Other comprehensive income (loss) | 564 | 564 | |||||||
Preferred stock redeemed | (750) | (728) | (22) | ||||||
Cash dividends declared: | |||||||||
Common stock dividends | (728) | (728) | |||||||
Preferred stock cash dividend | (210) | (210) | |||||||
Common stock acquired (shares) | 24,884 | ||||||||
Common stock acquired | (1,600) | $ (1,600) | |||||||
Common stock awards exercised (shares) | (2,295) | ||||||||
Common stock awards exercised | 198 | 95 | $ 103 | ||||||
Other (shares) | (32) | ||||||||
Other | (22) | (24) | (1) | $ 3 | |||||
Ending balance at Dec. 31, 2019 | 24,431 | 2,962 | $ 504 | 10,132 | 21,918 | (876) | $ (10,209) | ||
Ending balance (shares) at Dec. 31, 2019 | 503,880 | 146,490 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,420 | 2,420 | |||||||
Other comprehensive income (loss) | 1,063 | 1,063 | |||||||
Preferred stock redeemed | (500) | (491) | (9) | ||||||
Cash dividends declared: | |||||||||
Common stock dividends | (734) | (734) | |||||||
Preferred stock cash dividend | (152) | (152) | |||||||
Common stock acquired (shares) | 6,464 | ||||||||
Common stock acquired | (500) | $ (500) | |||||||
Common stock awards exercised (shares) | (2,233) | ||||||||
Common stock awards exercised | 172 | 72 | $ 100 | ||||||
Other (shares) | 2 | ||||||||
Other | 0 | 1 | (1) | ||||||
Ending balance at Dec. 31, 2020 | $ 26,200 | $ 2,471 | $ 504 | $ 10,205 | $ 23,442 | $ 187 | $ (10,609) | ||
Ending balance (shares) at Dec. 31, 2020 | 503,880 | 150,723 | |||||||
[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. |
Consolidated Statement of Cha_2
Consolidated Statement of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in USD per share) | $ 2.08 | $ 1.98 | $ 1.78 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities: | |||
Net income | $ 2,420 | $ 2,242 | $ 2,593 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income tax (benefit) | (194) | (130) | (136) |
Amortization of other intangible assets | 234 | 236 | 226 |
Other non-cash adjustments for depreciation, amortization and accretion, net | 1,276 | 1,101 | 977 |
Losses (gains) related to investment securities, net | (4) | 1 | (6) |
Provision for credit losses | 88 | 10 | 15 |
Change in trading account assets, net | 99 | (54) | 233 |
Change in accrued interest and fees receivable, net | 127 | (28) | 26 |
Change in collateral deposits, net | (2,951) | 287 | 7,326 |
Change in unrealized losses (gains) on foreign exchange derivatives, net | 3,652 | 2,034 | (1,836) |
Change in other assets, net | (1,406) | (713) | (22) |
Change in accrued expenses and other liabilities, net | (170) | 294 | 394 |
Other, net | 361 | 410 | 385 |
Net cash provided by operating activities | 3,532 | 5,690 | 10,175 |
Investing Activities: | |||
Net (increase) decrease in interest-bearing deposits with banks | (47,995) | 4,075 | (5,813) |
Net (increase) decrease in securities purchased under resale agreements | (1,619) | 3,192 | (1,438) |
Proceeds from sales of available-for-sale securities | 2,645 | 5,642 | 26,082 |
Proceeds from maturities of available-for-sale securities | 23,644 | 20,407 | 14,645 |
Purchases of available-for-sale securities | (37,873) | (38,164) | (31,814) |
Purchases of held-to-maturity securities under the MMLF program | (29,242) | 0 | 0 |
Proceeds from maturities of held-to-maturity securities under the MMLF program | 25,984 | 0 | 0 |
Proceeds from maturities of held-to-maturity securities | 15,179 | 10,390 | 6,296 |
Purchases of held-to-maturity securities | (13,981) | (6,938) | (6,539) |
Sale of loans | 324 | 131 | 278 |
Net (increase) in loans and leases | (1,939) | (650) | (2,739) |
Business acquisitions, net of cash acquired | 0 | (54) | (2,595) |
Purchases of equity investments and other long-term assets | (1,436) | (647) | (326) |
Purchases of premises and equipment, net | (560) | (730) | (609) |
Other, net | 1,335 | 720 | 76 |
Net cash (used in) by investing activities | (65,534) | (2,626) | (4,496) |
Financing Activities: | |||
Net (decrease) increase in time deposits | (33,466) | (11,255) | 6,673 |
Net increase (decrease) in all other deposits | 91,391 | 12,767 | (11,209) |
Net increase (decrease) in securities sold under repurchase agreements | 2,311 | 20 | (1,760) |
Net (decrease) increase in other short-term borrowings | (154) | (2,253) | 1,948 |
Net increase in short-term borrowings under money market liquidity facility | 3,302 | 0 | 0 |
Proceeds from issuance of long-term debt, net of issuance costs | 2,489 | 1,495 | 995 |
Payments for long-term debt and obligations under finance leases | (1,724) | (402) | (1,461) |
Payments for redemption of preferred stock | (500) | (750) | 0 |
Proceeds from issuance of preferred stock, net of issuance costs | 0 | 0 | 495 |
Proceeds from issuance of common stock, net of issuance costs | 0 | 0 | 1,150 |
Repurchases of common stock | (515) | (1,585) | (350) |
Repurchases of common stock for employee tax withholding | (78) | (81) | (124) |
Payments for cash dividends | (889) | (930) | (828) |
Net cash provided by (used in) financing activities | 62,167 | (2,974) | (4,471) |
Net increase | 165 | 90 | 1,208 |
Cash and due from banks at beginning of period | 3,302 | 3,212 | 2,004 |
Cash and due from banks at end of period | 3,467 | 3,302 | 3,212 |
Supplemental disclosure: | |||
Interest paid | 375 | 1,382 | 981 |
Income taxes paid, net | $ 403 | $ 510 | $ 549 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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, including our principal banking subsidiary, State Street Bank. We have two lines of business: Investment Servicing provides a suite of related products and services including: custody; product accounting; daily pricing and administration; master trust and master custody; depotbank services (a fund oversight role created by non-U.S. regulation); record-keeping; cash management; foreign exchange, brokerage and other trading services; securities finance and enhanced custody products; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk and compliance analytics; and financial data management to support institutional investors. Included within our Investment Servicing line of business is CRD, which we acquired in October 2018. The Charles River Investment Management solution is a technology offering which is designed to automate and simplify the institutional investment process across asset classes, from portfolio management and risk analytics through trading and post-trade settlement, with integrated compliance and managed data throughout. With the acquisition of CRD, we took the first step in building our front-to-back platform, State Street Alpha. Today our State Street Alpha platform combines portfolio management, trading and execution, advanced data aggregation, analytics and compliance tools, and integration with other industry platforms and providers. Investment Management , through State Street Global Advisors, provides a broad range of investment management strategies and products for our clients. Our investment management strategies and products span the risk/reward spectrum for equity, fixed income and cash assets, including core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities and alternative investment strategies. Our AUM is currently primarily weighted to indexed strategies. In addition, we provide a breadth of services and solutions, including environmental, social and governance investing, defined benefit and defined contribution and Global Fiduciary Solutions (formerly Outsourced Chief Investment Officer). State Street Global Advisors is also a provider of ETFs, including the SPDR ® ETF brand. While management fees are primarily determined by the values of AUM and the investment strategies employed, management fees reflect other factors as well, including the benchmarks specified in the respective management agreements related to performance fees. Consolidation Our consolidated financial statements include the accounts of the Parent Company and its majority- and wholly-owned and otherwise controlled subsidiaries, including State Street Bank. All material inter-company transactions and balances have been eliminated. Certain previously reported amounts have been reclassified to conform to current-year presentation. We consolidate subsidiaries in which we exercise control. Investments in unconsolidated subsidiaries, recorded in other assets, generally are accounted for under the equity method of accounting if we have the ability to exercise significant influence over the operations of the investee. For investments accounted for under the equity method, our share of income or loss is recorded in software and processing fees in our consolidated statement of income. Investments not meeting the criteria for equity-method treatment are measured at fair value through earnings, except for investments where a fair market value is not readily available, which are accounted for under the cost method of accounting. 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. Foreign Currency Translation The assets and liabilities of our operations with functional currencies other than the U.S. dollar are translated at month-end exchange rates, and revenue and expenses are translated at rates that approximate average monthly exchange rates. Gains or losses from the translation of the net assets of subsidiaries with functional currencies other than the U.S. dollar, net of related taxes, are recorded in AOCI, a component of shareholders’ equity. Cash and Cash Equivalents For purposes of the consolidated statement of cash flows, cash and cash equivalents are defined as cash and due from banks. Interest-Bearing Deposits with Banks Interest-bearing deposits with banks generally consist of highly liquid, short-term investments maintained at the Federal Reserve Bank and other non-U.S. central banks with original maturities at the time of purchase of one month or less. Securities Purchased Under Resale Agreements and Securities Sold Under Repurchase Agreements Securities purchased under resale agreements and sold under repurchase agreements are treated as collateralized financing transactions, and are recorded in our consolidated statement of condition at the amounts at which the securities will be subsequently resold or repurchased, plus accrued interest. Our policy is to take possession or control of securities underlying resale agreements either directly or through agent banks, allowing borrowers the right of collateral substitution and/or short-notice termination. We revalue these securities daily to determine if additional collateral is necessary from the borrower to protect us against credit exposure. We can use these securities as collateral for repurchase agreements. For securities sold under repurchase agreements collateralized by our investment securities portfolio, the dollar value of the securities remains in investment securities in our consolidated statement of condition. Where a master netting agreement exists or both parties are members of a common clearing organization, resale and repurchase agreements with the same counterparty or clearing house and maturity date are recorded on a net basis. Fee and Net Interest Income The majority of fees from investment servicing, investment management, securities finance, trading services and certain types of software and processing fees are recorded in our consolidated statement of income based on the consideration specified in contracts with our customers, and excludes taxes collected from customers subsequently remitted to governmental authorities. We recognize revenue as the services are performed or at a point in time depending on the nature of the services provided. Payments made to third party service providers are generally recognized on a gross basis when we control those services and are deemed to be the principal. Additional information about revenue from contracts with customers is provided in Note 25. Interest income on interest-earning assets and interest expense on interest-bearing liabilities are recorded in our consolidated statement of income as components of NII, and are generally based on the effective yield of the related financial asset or liability. Other Significant Policies The following table identifies our other significant accounting policies and the note and page where a detailed description of each policy can be found: Fair Value Note 2 Page 135 Investment Securities Note 3 Page 143 Loans Note 4 Page 149 Goodwill and Other Intangible Assets Note 5 Page 154 Derivative Financial Instruments Note 10 Page 158 Offsetting Arrangements Note 11 Page 163 Contingencies Note 13 Page 167 Variable Interest Entities Note 14 Page 169 Equity-Based Compensation Note 18 Page 176 Income Taxes Note 22 Page 180 Earnings Per Common Share Note 23 Page 181 Revenue from Contracts with Customers Note 25 Page 184 Relevant standards that were adopted in 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 on or after January 1, 2020 are presented under the CECL methodology in ASC 326, while prior period amounts are reported in accordance with previously applicable GAAP. 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 were 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 were 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 were 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. We expect to elect certain of the optional expedients and are evaluating the one-time election to sell/transfer HTM securities impacted by reference rate reform. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 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. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to valuation methods using significant unobservable inputs (level 3). If the inputs used to measure a financial asset or liability cross different levels of the hierarchy, categorization is based on the lowest-level input that is significant to the fair-value measurement. Management's assessment of the significance of a particular input to the overall fair-value measurement of a financial asset or liability requires judgment, and considers factors specific to that asset or liability. The three levels of the valuation hierarchy are described below. Level 1. Financial assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market. Our level 1 financial assets and liabilities primarily include positions in U.S. government securities and highly liquid U.S. and non-U.S. government fixed-income securities. Our level 1 financial assets also include actively traded exchange- traded equity securities. Level 2. Financial assets and liabilities with values based on quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include the following: ▪ Quoted prices for similar assets or liabilities in active markets; ▪ Quoted prices for identical or similar assets or liabilities in non-active markets; ▪ Pricing models whose inputs are observable for substantially the full term of the asset or liability; and ▪ Pricing models whose inputs are derived principally from, or corroborated by, observable market information through correlation or other means for substantially the full term of the asset or liability. Our level 2 financial assets and liabilities primarily include non-U.S. debt securities carried in trading account assets and various types of fixed-income AFS investment securities, as well as various types of foreign exchange and interest rate derivative instruments. Fair value for our AFS investment securities categorized in level 2 is measured primarily using information obtained from independent third parties. This third-party information is subject to review by management as part of a validation process, which includes obtaining an understanding of the underlying assumptions and the level of market participant information used to support those assumptions. In addition, management compares significant assumptions used by third parties to available market information. Such information may include known trades or, to the extent that trading activity is limited, comparisons to market research information pertaining to credit expectations, execution prices and the timing of cash flows and, where information is available, back- testing. Derivative instruments categorized in level 2 predominantly represent foreign exchange contracts used in our trading activities, for which fair value is measured using discounted cash-flow techniques, with inputs consisting of observable spot and forward points, as well as observable interest rate curves. With respect to derivative instruments, we evaluate the impact on valuation of the credit risk of our counterparties. We consider factors such as the likelihood of default by our counterparties, our current and potential future net exposures and remaining maturities in determining the fair value. Valuation adjustments associated with derivative instruments were not material to those instruments for the years ended December 31, 2020 and 2019. Level 3. Financial assets and liabilities with values based on prices or valuation techniques that require inputs that are both unobservable in the market and significant to the overall measurement of fair value. These inputs reflect management's judgment about the assumptions that a market participant would use in pricing the financial asset or liability, and are based on the best available information, some of which may be internally developed. The following provides a more detailed discussion of our financial assets and liabilities that we may categorize in level 3 and the related valuation methodology. • The fair value of our investment securities categorized in level 3 is measured using information obtained from third-party sources, typically non-binding broker/dealer quotes, or through the use of internally-developed pricing models. Management has evaluated its methodologies used to measure fair value and has considered the level of observable market information to be insufficient to categorize the securities in level 2. • The fair value of certain foreign exchange contracts, primarily options, is measured using an option-pricing model. Because of a limited number of observable transactions, certain model inputs are not observable, such as implied volatility surface, but are derived from observable market information. Our level 3 financial assets and liabilities are similar in structure and profile to our level 1 and level 2 financial instruments, but they trade in less liquid markets, and the measurement of their fair value is inherently less observable. 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 December 31, 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 $ 40 $ — $ — $ 40 Non-U.S. government securities — 239 — 239 Other 17 519 — 536 Total trading account assets 57 758 — 815 Available-for-sale investment securities: U.S. Treasury and federal agencies: Direct obligations 6,575 — — 6,575 Mortgage-backed securities — 14,305 — 14,305 Total U.S. Treasury and federal agencies 6,575 14,305 — 20,880 Asset-backed securities: Student loans — 314 — 314 Credit cards — 90 — 90 Collateralized loan obligations — 2,952 14 2,966 Total asset-backed securities — 3,356 14 3,370 Non-U.S. debt securities: Mortgage-backed securities — 1,996 — 1,996 Asset-backed securities — 2,291 — 2,291 Government securities — 12,539 — 12,539 Other (2) — 12,903 — 12,903 Total non-U.S. debt securities — 29,729 — 29,729 State and political subdivisions — 1,548 — 1,548 Collateralized mortgage obligations — 78 — 78 Other U.S. debt securities — 3,443 — 3,443 Total available-for-sale investment securities 6,575 52,459 14 59,048 Other assets: Derivative instruments: Foreign exchange contracts — 25,941 2 $ (20,140) 5,803 Interest rate contracts 1 — — — 1 Total derivative instruments 1 25,941 2 (20,140) 5,804 Other — 525 — — 525 Total assets carried at fair value $ 6,633 $ 79,683 $ 16 $ (20,140) $ 66,192 Liabilities: Accrued expenses and other liabilities: Trading account liabilities: Other $ 4 $ — $ — $ — $ 4 Derivative instruments: Foreign exchange contracts 1 25,925 1 (15,558) 10,369 Interest rate contracts — 42 — — 42 Other derivative contracts — 157 — — 157 Total derivative instruments 1 26,124 1 (15,558) 10,568 Total liabilities carried at fair value $ 5 $ 26,124 $ 1 $ (15,558) $ 10,572 (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 $5.87 billion and $1.29 billion, respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2020, the fair value of other non-U.S. debt securities included $9.55 billion of supranational and non-U.S. agency bonds, $1.88 billion of corporate bonds and $0.47 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 years ended December 31, 2020 and 2019, respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the years ended December 31, 2020 and 2019, transfers into level 3 were primarily related to collateralized loan obligations, for which fair value was measured using information obtained from third party sources, including non-binding broker/dealer quotes. During the years ended December 31, 2020 and 2019, transfers out of level 3 were mainly related to collateralized loan obligations, certain MBS and non-U.S. debt securities, for which fair value was measured using prices based on observable market information. Fair Value Measurements Using Significant Unobservable Inputs Year Ended December 31, 2020 Fair Value as of Total Realized and Purchases Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of December 31, 2020 (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: Asset-backed securities: Collateralized loan obligations $ 1,820 $ — $ (10) $ 864 $ (95) $ (77) $ 50 $ (2,538) $ 14 Total asset-backed securities 1,820 — (10) 864 (95) (77) 50 (2,538) 14 Non-U.S. debt securities: Asset-backed securities 887 — 35 1 — (5) — (918) — Other 45 — 2 — — — — (47) — Total non-U.S. debt securities 932 — 37 1 — (5) — (965) — Total Available-for-sale investment securities 2,752 — 27 865 (95) (82) 50 (3,503) 14 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) $ 27 $ 870 $ (95) $ (83) $ 50 $ (3,503) $ 16 $ (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 foreign exchange trading services. Fair Value Measurements Using Significant Unobservable Inputs Year Ended December 31, 2019 Fair Value Total Realized and Purchases Sales Settlements Transfers Transfers Fair Value as of December 31, 2019 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments (In millions) Recorded (1) Recorded (1) Assets: Available-for-sale Investment securities: Mortgage-backed securities $ — $ — $ — $ 123 $ — $ — $ — $ (123) $ — Asset-backed securities: Collateralized loan obligations 593 1 — 1,065 — (342) 503 — 1,820 Other — — — — — — — — — Total asset-backed securities 593 1 — 1,065 — (342) 503 — 1,820 Non-U.S. debt securities: Asset-backed securities 631 — (9) 340 — (36) — (39) 887 Other 58 — (1) — — — — (12) 45 Total non-U.S. debt securities 689 — (10) 340 — (36) — (51) 932 State and political subdivisions — — — — — — — — — Collateralized mortgage obligations 2 — — — — (2) — — — Total Available-for-sale investment securities 1,284 1 (10) 1,528 — (380) 503 (174) 2,752 Other assets: Derivative instruments: Foreign exchange contracts 4 (15) — 16 — (1) — — 4 $ (11) Total derivative instruments 4 (15) — 16 — (1) — — 4 (11) Total assets carried at fair value $ 1,288 $ (14) $ (10) $ 1,544 $ — $ (381) $ 503 $ (174) $ 2,756 $ (11) (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 internally-developed 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 December 31, 2020 As of December 31, 2019 Valuation Technique Significant Unobservable Input (1) As of December 31, 2020 As of December 31, 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 5.7% - 10.3% 7.9 % 8.2 % Total $ 2 $ 4 Liabilities: Derivative instruments, foreign exchange contracts $ 1 $ 3 Option model Volatility 6.6% - 10.3% 7.7 % 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. Financial Instruments Not Carried at Fair Value Estimates of fair value for financial instruments not carried at fair value 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. Disclosure of fair value estimates is not required by U.S. GAAP for certain items, such as lease financing, equity- method investments, obligations for pension and other post-retirement plans, premises and equipment, other intangible assets and income-tax assets and liabilities. Accordingly, aggregate fair-value estimates presented do not purport to represent, and should not be considered representative of, our underlying “market” or franchise value. In addition, because of potential differences in methodologies and assumptions used to estimate fair values, our estimates of fair value should not be compared to those of other financial institutions. We use the following methods to estimate the fair values of our financial instruments: • For financial instruments that have quoted market prices, those quoted prices are used to estimate fair value; • For financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, we assume that the fair value of these instruments approximates their reported value, after taking into consideration any applicable credit risk; and • For financial instruments for which no quoted market prices are available, fair value is estimated using information obtained from independent third parties, or by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. The generally short duration of certain of our assets and liabilities results in a significant number of financial instruments for which fair value equals or closely approximates the amount recorded in our consolidated statement of condition. These financial instruments are reported in the following captions in our consolidated statement of condition: cash and due from banks; interest-bearing deposits with banks; securities purchased under resale agreements; accrued interest and fees receivable; deposits; securities sold under repurchase agreements; and other short-term borrowings. In addition, due to the relatively short duration of certain of our loans, we consider fair value for these loans to approximate their reported value. The fair value of other types of loans, such as leveraged loans, commercial real estate loans, purchased receivables and municipal loans is estimated using information obtained from independent third parties or by discounting expected future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings for the same remaining maturities. Commitments to lend have no reported value because their terms are at prevailing market rates. 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) December 31, 2020 Financial Assets: Cash and due from banks $ 3,467 $ 3,467 $ 3,467 $ — $ — Interest-bearing deposits with banks 116,960 116,960 — 116,960 — Securities purchased under resale agreements 3,106 3,106 — 3,106 — HTM securities purchased under the MMLF 3,299 3,304 — 3,304 — Investment securities held-to-maturity 48,929 50,003 6,115 43,888 — Net loans 27,803 27,884 — 25,668 2,216 Other (1) 4,753 4,753 — 4,753 — Financial Liabilities: Deposits: Non-interest-bearing $ 49,439 $ 49,439 $ — $ 49,439 $ — Interest-bearing - U.S. 102,331 102,331 — 102,331 — Interest-bearing - non-U.S. 88,028 88,028 — 88,028 — Securities sold under repurchase agreements 3,413 3,413 — 3,413 — Short-term borrowings under the MMLF 3,302 3,302 — 3,302 — Other short-term borrowings 685 685 — 685 — Long-term debt 13,805 14,162 — 14,049 113 Other (1) 4,753 4,753 — 4,753 — (1) 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 (excluding leases) (1) 26,325 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 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 | 12 Months Ended |
Dec. 31, 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. Generally, trading assets are debt and equity securities purchased in connection with our trading activities and, as such, are expected to be sold in the near term. Our trading activities typically involve active and frequent buying and selling with the objective of generating profits on short-term movements. AFS investment securities are those securities that we intend to hold for an indefinite period of time. AFS investment securities include securities utilized as part of our asset and liability management activities that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. HTM securities are debt securities that management has the intent and the ability to hold to maturity. Starting in the first quarter of 2020, we supported our clients' liquidity needs through the MMLF program, purchasing a total of $29 billion of investment securities under that program, $3.3 billion of which remain outstanding as of December 31, 2020. Trading assets are carried at fair value. Both realized and unrealized gains and losses on trading 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 gains and losses are recorded in AOCI. Gains or losses realized 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. 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 December 31, 2020, we recognized an allowance for credit losses on HTM investment securities of $3 million. Prior to adoption of ASC 326 in 2020, AFS securities were carried at fair value, and after-tax net unrealized gains and losses were recorded in AOCI. HTM investment securities were carried at cost, adjusted for amortization of premiums and accretion of discounts. 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: December 31, 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 $ 6,453 $ 123 $ 1 $ 6,575 $ 3,506 $ 9 $ 28 $ 3,487 Mortgage-backed securities 13,891 421 7 14,305 17,599 264 25 17,838 Total U.S. Treasury and federal agencies 20,344 544 8 20,880 21,105 273 53 21,325 Asset-backed securities: Student loans (1) 313 2 1 314 532 1 2 531 Credit cards 90 — — 90 90 — 1 89 Collateralized loan obligations 2,969 3 6 2,966 1,822 1 3 1,820 Total asset-backed securities 3,372 5 7 3,370 2,444 2 6 2,440 Non-U.S. debt securities: Mortgage-backed securities 1,994 4 2 1,996 1,978 3 1 1,980 Asset-backed securities 2,294 1 4 2,291 2,179 2 2 2,179 Government securities 12,337 202 — 12,539 12,243 131 1 12,373 Other (2) 12,729 177 3 12,903 8,595 73 10 8,658 Total non-U.S. debt securities 29,354 384 9 29,729 24,995 209 14 25,190 State and political subdivisions (3) 1,470 80 2 1,548 1,725 59 1 1,783 Collateralized mortgage obligations 76 2 — 78 104 — — 104 Other U.S. debt securities 3,371 72 — 3,443 2,941 32 — 2,973 Total (4) $ 57,987 $ 1,087 $ 26 $ 59,048 $ 53,314 $ 575 $ 74 $ 53,815 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 6,057 $ 83 $ — $ 6,140 $ 10,311 $ 24 $ 3 $ 10,332 Mortgage-backed securities 36,883 955 67 37,771 26,297 316 44 26,569 Total U.S. Treasury and federal agencies 42,940 1,038 67 43,911 36,608 340 47 36,901 Asset-backed securities: Student loans (1) 4,774 33 25 4,782 3,783 10 41 3,752 Total asset-backed securities 4,774 33 25 4,782 3,783 10 41 3,752 Non-U.S. debt securities: Mortgage-backed securities 303 68 4 367 366 82 6 442 Government securities 342 — — 342 328 — — 328 Total non-U.S. debt securities 645 68 4 709 694 82 6 770 Collateralized mortgage obligations 572 30 1 601 697 38 1 734 Total (4) 48,931 1,169 97 50,003 41,782 470 95 42,157 HTM securities purchased under the MMLF program 3,300 4 — 3,304 — — — — Total held-to-maturity securities (4)(5) $ 52,231 $ 1,173 $ 97 $ 53,307 $ 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 December 31, 2020 and December 31, 2019, the fair value of other non-U.S. debt securities included $9.55 billion and $5.50 billion, respectively, primarily of supranational and non-U.S. agency bonds, $1.88 billion and $1.78 billion, respectively, of corporate bonds and $0.47 billion and $0.68 billion, respectively, of covered bonds. (3) As of December 31, 2020 and December 31, 2019, the fair value of state and political subdivisions includes securities in trusts of $0.70 billion and $0.94 billion, respectively. Additional information about these trusts is provided in Note 14. (4) An immaterial amount of accrued interest related to HTM and AFS investment securities was excluded from the amortized cost basis for the year ended December 31, 2020. (5) As of December 31, 2020, we recognized an allowance for credit losses of $3 million on all HTM securities. Aggregate investment securities with carrying values of approximately $70.57 billion and $49.48 billion as of December 31, 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. In 2020, 2019 and 2018, $8.60 billion, $3.98 billion and $2.13 million, respectively, of agency MBS, previously classified as AFS, were transferred to HTM. These transfers reflect our intent to hold these securities until their maturity. These securities were transferred at fair value, which included a net unrealized gain of $120 million and $49 million as of December 31, 2020 and 2019, respectively, and a net unrealized loss of $53 million as of December 31, 2018, within accumulated other comprehensive loss which will be accreted into interest income over the remaining life of the transferred security (ranging from approximately 3 to 37 years). In 2018, $1.22 billion of HTM securities, primarily consisting of MBS and CMBS, were transferred to AFS at book value and sold at a pre-tax loss of approximately $36 million, due to our election to make a one-time transfer of securities relating to the adoption of ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. In 2020, 2019 and 2018, we sold approximately $2.65 billion, $5.64 billion and $26.37 billion, respectively, of AFS securities, primarily ABS and municipal bonds, resulting in a pre-tax gain of approximately $4 million in 2020, a pre-tax loss less than $1 million in 2019 and a pre-tax gain of $9 million in 2018. The following table presents 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 December 31, 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 $ 1,636 $ 1 $ — $ — $ 1,636 $ 1 Mortgage-backed securities 1,394 7 63 — 1,457 7 Total U.S. Treasury and federal agencies 3,030 8 63 — 3,093 8 Asset-backed securities: Student loans 31 — 197 1 228 1 Collateralized loan obligations 1,498 4 369 2 1,867 6 Total asset-backed securities 1,529 4 566 3 2,095 7 Non-U.S. debt securities: Mortgage-backed securities 600 1 120 1 720 2 Asset-backed securities 1,015 3 446 1 1,461 4 Government securities 489 — — — 489 — Other 715 3 80 — 795 3 Total non-U.S. debt securities 2,819 7 646 2 3,465 9 State and political subdivisions 95 — 76 2 171 2 Other U.S. debt securities 17 — — — 17 — Total $ 7,490 $ 19 $ 1,351 $ 7 $ 8,841 $ 26 The following table presents the aggregate fair values of AFS and HTM 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 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 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 604 $ — $ 2,262 $ 3 $ 2,866 $ 3 Mortgage-backed securities 6,056 31 1,606 13 7,662 44 Total U.S. Treasury and federal agencies 6,660 31 3,868 16 10,528 47 Asset-backed securities: Student loans 2,003 22 778 19 2,781 41 Credit cards — — — — — — Other — — — — — — Total asset-backed securities 2,003 22 778 19 2,781 41 Non-U.S. debt securities: Mortgage-backed securities — — 138 6 138 6 Asset-backed securities — — — — — — Government securities — — — — — — Other — — — Total non-U.S. debt securities — — 138 6 138 6 Collateralized mortgage obligations 13 — 110 1 123 1 Total $ 8,676 $ 53 $ 4,894 $ 42 $ 13,570 $ 95 The following table presents the amortized cost and the fair value of contractual maturities of debt investment securities as of December 31, 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 December 31, 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 $ 1,648 $ 1,661 $ 2,758 $ 2,771 $ 2,047 $ 2,143 $ — $ — $ 6,453 $ 6,575 Mortgage-backed securities 121 127 603 619 2,800 2,828 10,367 10,731 13,891 14,305 Total U.S. Treasury and federal agencies 1,769 1,788 3,361 3,390 4,847 4,971 10,367 10,731 20,344 20,880 Asset-backed securities: Student loans 113 115 90 90 — — 110 109 313 314 Credit cards — — — — 90 90 — — 90 90 Collateralized loan obligations 76 76 1,080 1,077 838 838 975 975 2,969 2,966 Total asset-backed securities 189 191 1,170 1,167 928 928 1,085 1,084 3,372 3,370 Non-U.S. debt securities: Mortgage-backed securities 260 260 527 527 116 116 1,091 1,093 1,994 1,996 Asset-backed securities 337 337 1,250 1,247 272 272 435 435 2,294 2,291 Government securities 3,149 3,151 7,976 8,151 919 939 293 298 12,337 12,539 Other 1,323 1,329 9,520 9,652 1,718 1,752 168 170 12,729 12,903 Total non-U.S. debt securities 5,069 5,077 19,273 19,577 3,025 3,079 1,987 1,996 29,354 29,729 State and political subdivisions 136 136 605 626 514 559 215 227 1,470 1,548 Collateralized mortgage obligations — — — — — — 76 78 76 78 Other U.S. debt securities 449 452 2,833 2,896 89 95 — — 3,371 3,443 Total $ 7,612 $ 7,644 $ 27,242 $ 27,656 $ 9,403 $ 9,632 $ 13,730 $ 14,116 $ 57,987 $ 59,048 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 3,480 $ 3,512 $ 2,555 $ 2,607 $ — $ — $ 22 $ 21 $ 6,057 $ 6,140 Mortgage-backed securities 204 211 423 430 5,036 5,174 31,220 31,956 36,883 37,771 Total U.S. Treasury and federal agencies 3,684 3,723 2,978 3,037 5,036 5,174 31,242 31,977 42,940 43,911 Asset-backed securities: Student loans 350 343 155 152 667 665 3,602 3,622 4,774 4,782 Total asset-backed securities 350 343 155 152 667 665 3,602 3,622 4,774 4,782 Non-U.S. debt securities: Mortgage-backed securities 87 84 23 23 — — 193 260 303 367 Government securities 342 342 — — — — — — 342 342 Total non-U.S. debt securities 429 426 23 23 — — 193 260 645 709 Collateralized mortgage obligations 139 150 265 266 21 21 147 164 572 601 Total 4,602 4,642 3,421 3,478 5,724 5,860 35,184 36,023 48,931 50,003 Held-to-maturity under money market mutual fund liquidity facility 3,300 3,304 — — — — — — 3,300 3,304 Total held-to-maturity securities $ 7,902 $ 7,946 $ 3,421 $ 3,478 $ 5,724 $ 5,860 $ 35,184 $ 36,023 $ 52,231 $ 53,307 The following tables present gross realized gains and losses from sales of AFS investment securities, and the components of net impairment losses included in net gains and losses related to investment securities for the periods indicated, recognized under previous accounting guidance prior to the adoption of ASC 326: Years Ended December 31, (In millions) 2019 2018 Gross realized gains from sales of AFS investment securities $ 31 $ 205 Gross realized losses from sales of AFS investment securities (32) (196) Net impairment losses: Gross losses from OTTI — (3) Net impairment losses — (3) Gains (losses) related to investment securities, net (1) 6 Net impairment losses, recognized in our consolidated statement of income, were composed of the following: Impairment associated with adverse changes in timing of expected future cash flows — (3) Net impairment losses $ — $ (3) 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. Allowance for Credit Losses on Debt Securities and Impairment of AFS Securities 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 using a variety of methods, including both external and internal credit ratings. As of December 31, 2020, 99% of our HTM and AFS investment portfolio is publicly rated investment grade. Our allowance for credit losses on our HTM securities is approximately $3 million as of December 31, 2020 and we recorded a $3 million provision and no charge-offs on HTM securities in 2020. 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 Group of Seven 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. 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 then-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 $123 million related to 503 securities as of December 31, 2020 to not be the result of any material changes in the credit characteristics of the securities. Prior to the adoption of ASC 326 on January 1, 2020, we assessed our AFS and HTM securities for impairment under an OTTI model. Under this model impairment of AFS and HTM debt securities was recorded in our consolidated statement of income when management intended to sell (or may be required to sell) the securities before they recovered in value, or when management expected the present value of cash flows expected to be collected from the securities to be less than the amortized cost of the impaired security (a credit loss). The review of impaired securities under the OTTI model was consistent with the considerations noted for AFS securities under ASC 326. Where impairment was indicated based on our review, the following factors were also considered in determining whether impairment was other than temporary: • certain macroeconomic drivers; • certain industry-specific drivers; • the length of time the security has been impaired; • the severity of the impairment; • the cause of the impairment and the financial condition and near-term prospects of the issuer; • activity in the market with respect to the issuer's securities, which may indicate adverse credit conditions; and • our intention not to sell, and the likelihood that we will not be required to sell, the security for a period of time sufficient to allow for its recovery in value. Substantially all of our investment securities portfolio is composed of debt securities. A critical component of our assessment of OTTI of these debt securities was the identification of credit-impaired securities for which management did not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. Debt securities that were not deemed to be credit-impaired were subject to additional management analysis to assess whether management intended to sell, or, more likely than not, would be required to sell, the security before the expected recovery of its amortized cost basis. We recorded less than $1 million and $3 million of OTTI, included in other income, in the years ended December 31, 2019 and 2018, respectively, which resulted from adverse changes in the timing of expected future cash flows from non-U.S. mortgage- and asset backed securities. The following table presents a roll-forward with respect to net impairment losses that had been recognized in income for the periods indicated: Years Ended December 31, (In millions) 2019 2018 Balance, beginning of period $ 78 $ 77 Additions (1) : Other-than-temporary-impairment recognized — 3 Deductions (2) : Realized losses on securities sold or matured (8) (2) Balance, end of period $ 70 $ 78 1) Additions represent securities with a first time credit impairment realized or when a subsequent credit impairment has occurred. (2) Deductions represent impairments on securities that have been sold or matured, are required to be sold, or for which management intends to sell. After a review of the investment portfolio, taking into consideration then-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 considered the aggregate decline in fair value of the investment securities portfolio and the resulting gross pre-tax unrealized losses of $123 million and $169 million related to 503 and 622 securities as of December 31, 2020 and December 31, 2019, respectively, to be temporary, and not the result of any material changes in the credit characteristics of the securities. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses Loans are generally recorded at their principal amount outstanding, net of the allowance for credit losses, unearned income, and any net unamortized deferred loan origination fees. Loans that are classified as held-for-sale are measured at lower of cost or fair value on an individual basis. Interest income related to loans is recognized in our consolidated statement of income using the interest method, or on a basis approximating a level rate of return over the term of the loan. Fees received for providing loan commitments and letters of credit that we anticipate will result in loans typically are deferred and amortized to interest income over the term of the related loan, beginning with the initial borrowing. Fees on commitments and letters of credit are amortized to software and processing fees over the commitment period when funding is not known or expected. The following table presents our recorded investment in loans, by segment, as of the dates indicated: (In millions) December 31, 2020 December 31, 2019 Domestic (1) : Commercial and financial: Fund Finance (2) 11,531 10,270 Leveraged loans 2,923 3,342 Overdrafts 1,894 1,739 Other (3) 2,688 3,411 Commercial real estate 2,096 1,766 Total domestic 21,132 20,528 Foreign (1) : Commercial and financial: Fund Finance (2) 4,432 3,145 Leveraged loans 1,242 1,119 Overdrafts 1,088 1,517 Other (3) 31 — Total foreign 6,793 5,781 Total loans (2) 27,925 26,309 Allowance for credit losses (122) (74) Loans, net of allowance $ 27,803 $ 26,235 (1) Domestic and foreign categorization is based on the borrower’s country of domicile. (2) Fund finance loans include primarily $6,391 million loans to real money funds, $8,380 million private equity capital call finance loans and $821 million loans to business development companies as of December 31, 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 $1,911 million securities finance loans, $754 million loans to municipalities and $54 million other loans as of December 31, 2020 and $2,537 million securities finance loans, $848 million loans to municipalities and $26 million other loans as of December 31, 2019. We segregate our loans into two segments: commercial and financial loans and commercial real estate loans. These classifications reflect their risk characteristics, their initial measurement attributes and the methods we use to monitor and assess credit risk. The commercial and financial segment is composed of primarily floating-rate loans, purchased 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 December 31, 2020 and December 31, 2019, the loans pledged as collateral totaled $8.07 billion and $6.75 billion, respectively. We generally place loans on non-accrual status once principal or interest payments are 90 days contractually past due, or earlier if management determines that full collection is not probable. Loans 90 days past due, but considered both well-secured and in the process of collection, may be excluded from non-accrual status. When we place a loan on non-accrual status, the accrual of interest is discontinued and previously recorded but unpaid interest is reversed and generally charged against interest income. For loans on non-accrual status, income is recognized on a cash basis after recovery of principal, if and when interest payments are received. Loans may be removed from non-accrual status when repayment is reasonably assured and performance under the terms of the loan has been demonstrated. As of December 31, 2020 and December 31, 2019, we had no loans on non-accrual status. As of December 31, 2020, we had one loan with principal or interest payments 30 days or more contractually past due, that was subsequently paid in January 2021. As of December 31, 2019, we had no loans with principal or interest payments 30 days or more contractually past due. We sold $353 million of leveraged loans in 2020. We recorded a charge-off against the allowance for these loans prior to the sale of these loans of $41 million in 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 during the years ended December 31, 2020 and 2019. Allowance for Credit Losses 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 losses for investment securities, please refer to Note 3. When the allowance is recorded, a provision for credit loss expense is recognized in net income. The allowance for credit losses for financial assets (excluding investment securities, as discussed in Note 3) 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. Loans are charged off to the allowance for credit losses in the reporting period in which either an event occurs that confirms the existence of a loss on a loan, including a sale of a loan below its carrying value, or a portion of a loan is determined to be uncollectible. The allowance for credit losses may be determined using various methods, including discounted cash flow methods, loss-rate methods, probability-of-default methods, and other quantitative or qualitative 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. 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 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. For a financial asset that does not share risk characteristics with other assets, expected credit losses are measured based on 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 December 31, 2020, we had 5 loans for $77 million in the commercial and financial segment that no longer met the similar risk characteristics of their collective pool. We recorded an allowance for credit losses of $6 million as of December 31, 2020 on these loans. 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. As part of our allowance methodology, we establish qualitative reserves to address any risks inherent in our portfolio that are not addressed through our quantitative reserve assessment. These factors may relate to, among other things, legislation changes or new regulation, credit concentration, loan markets, scenario weighting and overall model limitations. The qualitative adjustments are applied to our portfolio of financial instruments under the existing governance structure and are inherently judgmental. 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. 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. We use an internal risk-rating system to assess our risk of credit loss for each loan. This 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 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 individual loan, 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 considers the ratings to be current as of December 31, 2020. 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 to counterparties ranging from Investment Grade, Speculative, Special Mention, Substandard, Doubtful and Loss. • Investment Grade. Counterparties with strong credit quality and low expected credit risk and probability of default. Approximately 81% of our loans were rated as investment grade as of December 31, 2020 with external credit ratings, or equivalent, of "BBB-" or better. • Speculative. Counterparties that have the ability to repay but face significant uncertainties, such as adverse business or financial circumstances that could affect credit risk. Loans to counterparties rated as speculative account for approximately 19% of our loans as of December 31, 2020, and are concentrated in leveraged loans. Approximately 85% of those leveraged loans have an external credit rating, or equivalent, of "BB" or "B" as of December 31, 2020. • Special Mention. Counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects. • Substandard. Counterparties with well-defined weakness that jeopardizes repayment with the possibility we will sustain some loss. • Doubtful. Counterparties with well-defined weakness which make collection or liquidation in full highly questionable and improbable. • Loss. Counterparties which are uncollectible or have little value. The following tables present our recorded loans to counterparties by risk rating, as noted above, as of the dates indicated: December 31, 2020 Commercial and Financial Commercial Real Estate Total Loans (In millions) Investment grade $ 20,859 $ 1,724 $ 22,583 Speculative 4,852 372 5,224 Special mention 67 — 67 Substandard 34 — 34 Doubtful 17 — 17 Total (1) $ 25,829 $ 2,096 $ 27,925 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 $2,982 million and $3,256 million of overdrafts as of December 31, 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. This includes our fees receivable balance, which have had no history of credit losses, and are evaluated collectively as a pool. Securities purchased under a resale agreement and securities-financing within our principal business utilize 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 December 31, 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 Prior Revolving Loans Total (1) Domestic loans: Commercial and financial: Risk Rating: Investment grade $ 1,894 $ 388 $ 4 $ 167 $ 200 $ — $ 12,836 $ 15,489 Speculative 432 942 822 610 43 — 597 3,446 Special mention — 28 — 39 — — — 67 Substandard — 5 — — 29 — — 34 Doubtful — — — — — — — — Total commercial and financing $ 2,326 $ 1,363 $ 826 $ 816 $ 272 $ — $ 13,433 $ 19,036 Commercial real estate: Risk Rating: Investment grade $ 178 $ 383 $ 688 $ 277 $ 197 $ — $ — $ 1,723 Speculative 120 166 58 — — 29 — 373 Total commercial real estate $ 298 $ 549 $ 746 $ 277 $ 197 $ 29 $ — $ 2,096 Non-U.S. loans: Commercial and financial: Risk Rating: Investment grade $ 1,028 $ — $ — $ — $ — $ — $ 4,343 $ 5,371 Speculative 283 401 346 162 26 66 121 1,405 Doubtful — — — 17 — — — 17 Total commercial and financing $ 1,311 $ 401 $ 346 $ 179 $ 26 $ 66 $ 4,464 $ 6,793 Total loans $ 3,935 $ 2,313 $ 1,918 $ 1,272 $ 495 $ 95 $ 17,897 $ 27,925 (1) Any reserve associated with accrued interest is not material. As of December 31, 2020, accrued interest receivable of $72 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 year ended December 31, 2020: Year End December 31, 2020 Commercial and Financial (In millions) Leveraged Loans Other Loans (1) Commercial Real Estate Held-to-Maturity Securities Off-Balance Sheet Commitments All Other Total Allowance for credit losses: Beginning balance $ 61 $ 10 $ 2 $ — $ 19 $ 1 $ 93 Charge-offs (2) (41) — — — — — (41) Provision 70 7 6 3 2 — 88 FX translation 7 — — — 1 — 8 Ending balance $ 97 $ 17 $ 8 $ 3 $ 22 $ 1 $ 148 (1) Includes $13 million allowance for credit losses on Fund Finance loans and $4 million on other loans. (2) Related to the sale of leveraged loans in 2020. Loans are reviewed on a regular basis, and any provisions for credit 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 credit losses in the loan portfolio. We recorded $88 million provision for credit losses in 2020, which reflected both downward credit migration within our loan portfolio and revision in management’s economic outlook reflecting the impact of the COVID-19 pandemic. Allowance estimates remain subject to continued model and economic uncertainty and management may use qualitative adjustments. If future data and forecasts deviate relative to the forecasts utilized to determine our allowance for credit losses as of December 31, 2020, or if credit risk migration is higher or lower than forecasted for reasons independent of the economic forecast, our allowance for credit losses will also change. Allowance for Loan Losses under Incurred Loss Methodology for the years ended December 31, 2019 and December 31, 2018 On-Balance Sheet Credit Exposures Factors considered in evaluating the appropriate level of the allowance for each segment of our loan portfolio under the incurred loss model included loss experience, the probability of default reflected in our internal risk rating of the counterparty's creditworthiness, then-current economic conditions and adverse situations that may affect the borrower’s ability to repay, the estimated value of the underlying collateral, if any, the performance of individual credits in relation to contract terms, and other relevant factors. Loans were charged off to the allowance for loan losses in the reporting period in which either an event occurred that confirmed the existence of a loss on a loan, including a sale of a loan below its carrying value, or a portion of a loan was determined to be uncollectible. In addition, any impaired loan that was determined to be collateral-dependent was reduced to an amount equal to the fair value of the collateral less costs to sell. A loan was identified as collateral-dependent when management determined that it was probable that the underlying collateral would be the sole source of repayment. Recoveries were recorded on a cash basis as adjustments to the allowance. The following table presents activity in the allowance for loan losses for the periods indicated under the incurred loss methodology: (In millions) Year Ended December 31, 2019 Year Ended December 31, 2018 Allowance for loan losses: Beginning balance $ 67 $ 54 Provision for credit losses (1) 10 15 Charge-offs (1) (3) (2) Ending balance $ 74 $ 67 (1) The provisions and charge offs for credit losses were primarily attributable to exposure to purchased leveraged loans to non-investment grade loans. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net tangible and other intangible assets acquired. Other intangible assets represent purchased long-lived intangible assets, primarily client relationships, that can be distinguished from goodwill because of contractual rights or because the asset can be exchanged on its own or in combination with a related contract, asset or liability. Goodwill is not amortized, but is subject to at least annual evaluation for impairment. Other intangible assets, which are subject to evaluation for impairment, are mainly related to client relationships, which are amortized on a straight-line basis over periods ranging from five three sixteen Impairment of goodwill is deemed to exist if the carrying value of a reporting unit, including its allocation of goodwill and other intangible assets, exceeds its estimated fair value. Impairment of other intangible assets is deemed to exist if the balance of the other intangible asset exceeds the cumulative expected net cash inflows related to the asset over its remaining estimated useful life. If these reviews determine that goodwill or other intangible assets are impaired, the value of the goodwill or the other intangible asset is written down through a charge to other expenses in our consolidated statement of income. There were no impairments to goodwill or other intangible assets in 2020, 2019 and 2018. The following table presents changes in the carrying amount of goodwill during the periods indicated: (In millions) Investment Servicing (1) Investment 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 124 3 127 Ending balance December 31, 2020 $ 7,413 $ 270 $ 7,683 (1) Investment Servicing includes our acquisition of CRD. (2) We completed the purchase price accounting for the CRD acquisition 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 in the year ended December 31, 2019, resulting in an increase in the goodwill of $113 million and a decrease of $93 million in other 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 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 (206) (28) (234) Foreign currency translation 31 — 31 Ending balance December 31, 2020 $ 1,733 $ 94 $ 1,827 (1) Investment Servicing includes our acquisition of CRD. (2) We completed the purchase price accounting for the CRD acquisition 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 in the year ended December 31, 2019, resulting in a decrease in the fair value of other intangible assets of $93 million, 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: December 31, 2020 Gross Accumulated Net (In millions) Other intangible assets: Client relationships $ 2,704 $ (1,450) $ 1,254 Technology 393 (113) 280 Core deposits 690 (425) 265 Other 107 (79) 28 Total $ 3,894 $ (2,067) $ 1,827 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (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 Amortization expense related to other intangible assets was $234 million, $236 million and $226 million in 2020, 2019 and 2018, respectively. Expected future amortization expense for other intangible assets recorded as of December 31, 2020 is as follows: (In millions) Future Amortization Years Ended December 31, 2021 $ 235 2022 232 2023 231 2024 224 2025 199 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Other Assets | Other Assets The following table presents the components of other assets as of the dates indicated: (In millions) December 31, 2020 December 31, 2019 Securities borrowed (1) $ 18,330 $ 18,524 Derivative instruments, net 5,804 4,753 Bank-owned life insurance 3,479 3,395 Investments in joint ventures and other unconsolidated entities 3,095 2,899 Collateral, net 2,713 874 Right-of-use assets 720 858 Prepaid expenses 383 395 Accounts receivable 379 432 Income taxes receivable 367 309 Deferred tax assets, net of valuation allowance (2) 233 216 Receivable for securities settlement 117 336 Deposits with clearing organizations 58 58 Other 832 962 Total $ 36,510 $ 34,011 (1) Refer to Note 11, 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. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Deposits | DepositsAs of December 31, 2020, we had $1.68 billion of time deposits outstanding, all of which were non-US time deposits. As of December 31, 2019, we had $35.15 billion of time deposits outstanding, of which $3.00 billion were wholesale CDs, $32.01 billion were derived from client deposits (payable on demand to such clients) and held in a time deposit established by us as the agent and $139 million were non-U.S. As of December 31, 2020 and 2019, all U.S. and non-U.S. time deposits were in amounts of $250,000 or more. As of December 31, 2020, all time deposits are scheduled to mature in 2021. Demand deposit overdrafts of $2.98 billion and $3.26 billion were included as loan balances at December 31, 2020 and 2019, respectively. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Our short-term borrowings include securities sold under repurchase agreements, short-term borrowings associated with our tax-exempt investment program (more fully described in Note 14) and other short-term borrowings, including those related to the money market liquidity facility. Collectively, short-term borrowings had weighted-average interest rates of 0.93% and 1.64% in 2020 and 2019, respectively. The following table presents information with respect to the amounts outstanding and weighted-average interest rates of the primary components of our short-term borrowings as of and for the years ended December 31: (Dollars in millions) Securities Sold Under Repurchase Agreements Tax-Exempt Investment Program Other 2020 2019 2018 2020 2019 2018 2020 2019 2018 Balance as of December 31 $ 3,413 $ 1,102 $ 1,082 $ 616 $ 823 $ 931 $ 3,302 $ — $ 2,000 Maximum outstanding as of any month-end 5,373 4,125 3,441 823 931 1,078 25,665 — 2,000 Average outstanding during the year 2,615 1,616 2,048 771 898 1,023 8,251 3 nm Weighted-average interest rate as of year-end .00 % .00 % 1.38 % .23 % 1.75 % 1.74 % 1.35 % .00 % 2.68 % Weighted-average interest rate during the year .14 1.90 .62 .78 1.51 1.46 1.23 .01 nm nm Not meaningful Obligations to repurchase securities sold are recorded as a liability in our consolidated statement of condition. U.S. government securities with a fair value of $3.98 billion underlying the repurchase agreements remained in our investment securities portfolio as of December 31, 2020. The following table presents information about these U.S. government securities and the carrying value of the related repurchase agreements, including accrued interest, as of December 31, 2020. U.S. Government Securities Sold Repurchase Agreements (1) (In millions) Amortized Cost Fair Value Amortized Cost Overnight maturity $ 2,992 $ 3,981 $ 3,413 (1) Collateralized by investment securities. We maintain an agreement with a clearing organization that enables us to net all securities purchased under resale agreements and sold under repurchase agreements with counterparties that are also members of the clearing organization. As a result of this netting, the average balances of securities purchased under resale agreements and securities sold under repurchase agreements were reduced by $100.45 billion in 2020 compared to $86.67 billion in 2019. The increase in average balance sheet netting, in 2020 compared to 2019, is primarily due to the expansion of our FICC program and new client activity. State Street Bank currently maintains a line of credit of CAD 1.40 billion, or approximately $1.10 billion, as of December 31, 2020, to support its Canadian securities processing operations. The line of credit has no stated termination date and is cancelable by either party with prior notice. As of December 31, 2020 and 2019, there was no balance outstanding on this line of credit. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Long-Term Debt (Dollars in millions) As of December 31, Issuance Date Maturity Date Coupon Rate Seniority Interest Due Dates 2020 2019 Parent Company And Non-Banking Subsidiary Issuances August 18, 2015 August 18, 2025 3.55 % Senior notes 2/18; 8/18 (1) $ 1,413 $ 1,331 August 18, 2015 August 18, 2020 2.55 % Senior notes 2/18; 8/18 — 1,191 November 19, 2013 November 20, 2023 3.7 % Senior notes 5/20; 11/20 (1) 1,070 1,037 December 15, 2014 December 16, 2024 3.3 % Senior notes 6/16; 12/16 (1) 1,075 1,022 May 15, 2013 May 15, 2023 (2) 3.1 % Subordinated notes 5/15; 11/15 (1) 1,039 1,006 November 1, 2019 November 1, 2025 2.354 % Fixed-to-floating rate senior notes 5/1; 11/1 1,047 991 January 24, 2020 January 24, 2030 2.400 % Senior notes 1/24, 7/24 821 — March 30, 2020 March 30, 2023 2.825 % Fixed-to-floating rate senior notes 3/30, 9/30 748 — March 30, 2020 March 30, 2026 2.901 % Fixed-to-floating rate senior notes 3/30, 9/30 498 — March 30, 2020 March 30, 2031 3.152 % Fixed-to-floating rate senior notes 3/30, 9/30 497 — May 15, 2017 May 15, 2023 2.653 % Fixed-to-floating rate senior notes 5/15; 11/15 (1) 766 753 March 7, 2011 March 7, 2021 4.375 % Senior notes 3/7; 9/7 (1) 752 748 May 19, 2016 May 19, 2021 1.95 % Senior notes 5/19; 11/19 (1) 753 744 May 19, 2016 May 19, 2026 2.65 % Senior notes 5/19; 11/19 (1) 796 741 December 3, 2018 December 3, 2029 4.141 % Fixed-to-floating rate senior notes 6/3; 12/3 (1) 594 546 December 3, 2018 December 3, 2024 3.776 % Fixed-to-floating rate senior notes 6/3; 12/3 (1) 538 522 August 18, 2015 August 18, 2020 Floating-rate Senior notes 2/18; 5/18; 8/18; 11/18 — 500 April 30, 2007 June 15, 2047 Floating-rate Junior subordinated debentures 3/15; 6/15; 9/15; 12/15 499 499 November 1, 2019 November 1, 2034 (2) 3.031 % Fixed-to-floating rate senior subordinated notes 5/1; 11/1 546 492 May 15, 1998 May 15, 2028 Floating-rate Junior subordinated debentures 2/15; 5/15; 8/15; 11/15 100 100 June 21, 1996 June 15, 2026 (3) 7.35 % Senior notes 6/15; 12/15 150 150 Parent Company Long-term finance leases 103 136 Total long-term debt $ 13,805 $ 12,509 (1) We have entered into interest rate swap agreements, recorded as fair value hedges, to modify our interest expense on these senior and subordinated notes from a fixed rate to a floating rate. As of December 31, 2020 and 2019, the carrying value of long-term debt associated with these fair value hedges was $691 million and$157 million, respectively. Refer to Note 10 for additional information about fair value hedges. (2) The subordinated notes qualify for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines. (3) We may not redeem notes prior to their maturity. In the fourth quarter of 2019, we completed a cash tender offer for approximately $297 million of our $800 million aggregate principal amount of outstanding floating rate junior subordinated debentures due 2047, resulting in a gain of approximately $44 million. Additionally, in the fourth quarter of 2019, we completed a redemption for approximately $50 million of our $150 million aggregate principal amount of outstanding floating rate junior subordinated debentures due 2028. Termination of Replacement Capital Covenant Prior to November 20, 2019, we were subject to a replacement capital covenant dated April 30, 2007 (the Original RCC), as amended by the amendment to replacement capital covenant dated May 13, 2016 (the RCC Amendment and, together with the Original RCC, the Replacement Capital Covenant). Pursuant to the terms of the Replacement Capital Covenant, neither us nor any of our subsidiaries, including State Street Bank, was permitted to repay, redeem or purchase any of the outstanding floating rate junior subordinated debentures due 2047 prior to June 1, 2047 unless certain conditions had been satisfied, except to the extent that (i) we obtained the prior approval of the Federal Reserve, if such approval was then required, and (ii) we had received proceeds, up to specified percentages of the aggregate principal amount repaid or the applicable redemption or purchase price, from the sale or issuance of qualifying securities with characteristics that are the same as, or more equity-like than, the applicable characteristics of the floating rate junior subordinated debentures due 2047 during the 180 days prior to the date of that repayment, redemption or purchase (which period was to be shortened under certain specified circumstances). The Replacement Capital Covenant was a covenant for the benefit of persons buying, holding or selling specified series of our unsecured long-term indebtedness or our depository institution subsidiaries (the Covered Debt). The original Covered Debt under the Replacement Capital Covenant were the outstanding floating rate junior subordinated debentures due 2028. The Replacement Capital Covenant was terminated automatically without further action on November 20, 2019, following the settlement of the partial redemption of approximately $50 million aggregate principal amount of floating rate junior subordinated debentures due 2028 and the redesignation of our 2.650% Senior Notes due 2026 as Covered Debt for the purposes of the Replacement Capital Covenant, and purchases of the floating rate junior subordinated debentures due 2047 are permissible without issuing qualifying securities under the Replacement Capital Covenant. Parent Company As of December 31, 2020 and 2019, long-term finance leases included $103 million and $136 million, respectively, related to our One Lincoln Street headquarters building and related underground parking garage. Refer to Note 20 for additional information. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 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. Derivatives in hedge accounting relationships are disclosed according to the type of hedge, such as, fair value, cash flow, or net investment. Derivatives designated as hedging instruments in hedge accounting relationships are carried at fair value with change in fair value recognized in the consolidated statement of income or OCI, as appropriate. Derivatives not designated in hedge accounting relationships include those derivatives entered into to support client needs and derivatives used to manage interest rate or foreign currency risk associated with certain assets and liabilities. Such derivatives are carried at fair value with changes in fair value recognized in the consolidated statement of income. Derivatives Not Designated as Hedging Instruments We provide foreign exchange forward contracts and options in support of our client needs, and also act as a dealer in the currency markets. As part of our trading activities, we assume positions in both the foreign exchange and interest rate markets by buying and selling cash instruments and using derivative financial instruments, including foreign exchange forward contracts, foreign exchange and interest rate options, interest rate forward contracts, and interest rate futures. The entire change in the fair value of our non-hedging derivatives utilized in our trading activities are recorded in foreign exchange trading services revenue, and the entire change in fair value of our non-hedging derivatives utilized in our asset-and-liability management activities are recorded in net interest income. We enter into stable value wrap derivative contracts with unaffiliated stable value funds that allow a stable value fund to provide book value coverage to its participants. These derivatives contracts qualify as guarantees as described in Note 12. We grant deferred cash awards to certain of our employees as part of our employee incentive compensation plans. We account for these awards as derivative financial instruments, as the underlying referenced shares are not equity instruments of ours. The fair value of these derivatives is referenced to the value of units in State Street-sponsored investment funds or funds sponsored by other unrelated entities. We re-measure these derivatives to fair value quarterly, and record the change in value in compensation and employee benefits expenses in our consolidated statement of income. Derivatives Designated as Hedging Instruments In connection with our asset-and-liability management activities, we use derivative financial instruments to manage our interest rate risk and foreign currency risk for certain assets and liabilities. At both the inception of the hedge and on an ongoing basis, we formally assess and document the effectiveness of a derivative designated in a hedging relationship and the likelihood that the derivative will be an effective hedge in future periods. We discontinue hedge accounting prospectively when we determine that the derivative is no longer highly effective in offsetting changes in fair value or cash flows of the underlying risk being hedged, the derivative expires, terminates or is sold, or management discontinues the hedge designation. The risk management objective of a highly effective hedging strategy that qualifies for hedge accounting must be formally documented. The hedge documentation includes the derivative hedging instrument, the asset or liability or forecasted transaction, type of risk being hedged and method for assessing hedge effectiveness of the derivative prospectively and retrospectively. We use quantitative methods including regression analysis and cumulative dollar offset method, comparing the change in the fair value of the derivative to the change in fair value or the cash flows of the hedged item. We may also utilize qualitative methods such as matching critical terms and evaluation of any changes in those critical terms. Effectiveness is assessed and documented quarterly and if determined that the derivative is not highly effective at hedging the designated risk hedge accounting is discontinued. 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, but the hedged item was not derecognized, all remaining adjustments to the carrying amount of the hedged item are 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 December 31, 2020, the maximum maturity date of the underlying loans is approximately 3.7 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 OCI. The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments including those entered into for trading and asset-and-liability management activities as of the dates indicated: (In millions) December 31, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Interest rate contracts: Futures $ 2,842 $ 4,368 Foreign exchange contracts: Forward, swap and spot 2,640,989 2,378,808 Options purchased 946 1,581 Options written 661 1,110 Futures 1,980 1,040 Other: Stable value contracts (1) 32,359 26,895 Deferred value awards (2) 332 389 Derivatives designated as hedging instruments: Interest rate contracts: Swap agreements 7,449 15,196 Foreign exchange contracts: Forward and swap 5,221 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 discussion in this note under "Derivatives Not Designated as Hedging Instruments." 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 11. Derivative Assets (1) Derivative Liabilities (2) (In millions) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 25,939 $ 15,140 $ 25,811 $ 15,054 Other derivative contracts — — 157 182 Total $ 25,939 $ 15,140 $ 25,968 $ 15,236 Derivatives designated as hedging instruments: Foreign exchange contracts $ 4 $ — $ 116 $ 96 Interest rate contracts 1 8 42 49 Total $ 5 $ 8 $ 158 $ 145 (1) Derivative assets are included within other assets in our consolidated statement of condition. (2) Derivative liabilities are included within 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: Years Ended December 31, 2020 2019 2018 (In millions) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Derivatives not designated as hedging instruments: Foreign exchange contracts Foreign exchange trading services revenue $ 922 $ 630 $ 723 Foreign exchange contracts Interest expense (1) 63 (153) (41) Interest rate contracts Foreign exchange trading services revenue 3 (3) (6) Interest rate contracts Software and processing fees (1) — — (1) Other derivative contracts Foreign exchange trading services revenue — — 5 Other derivative contracts Compensation and employee benefits (189) (205) (171) Total $ 799 $ 269 $ 509 (1) 2018 includes approximately $15 million of swap costs related to the first quarter of 2018 that were reclassified from software and processing fees to interest expense. 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: December 31, 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 $ 496 $ 3 $ 10,023 $ 688 Available-for-sale securities 2,330 45 — — Total $ 2,826 $ 48 $ 10,023 $ 688 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 December 31, 2020 and December 31, 2019, the total notional amount of the interest rate swaps of fair value hedges was $2.60 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: Years Ended December 31, Years Ended December 31, 2020 2019 2018 2020 2019 2018 (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: Foreign exchange contracts Software and processing fees $ — $ — $ (74) Investment securities Software and processing fees $ — $ — $ 74 Foreign exchange contracts Software and processing fees — — (328) Foreign exchange deposit Software and processing fees — — 328 Interest rate contracts Net interest income 1 (4) 31 Available-for-sale securities (1) Net interest income (4) 2 (32) Interest rate contracts Net interest income 566 266 (58) Long-term debt Net interest income (559) (255) 49 Total $ 567 $ 262 $ (429) $ (563) $ (253) $ 419 (1) In 2020, 2019 and 2018, $3 million, $18 million and $24 million, respectively, of net unrealized gains on AFS investment securities designated in fair value hedges were recognized in OCI. Years Ended December 31, Years Ended December 31, 2020 2019 2018 Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2020 2019 2018 (In millions) Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Derivatives designated as cash flow hedges: Interest rate contracts $ 176 $ 8 $ (12) Net interest income $ 49 $ (10) $ (1) Foreign exchange contracts (22) 43 (12) Net interest income 23 27 27 Total derivatives designated as cash flow hedges $ 154 $ 51 $ (24) $ 72 $ 17 $ 26 Derivatives designated as net investment hedges: Foreign exchange contracts $ (250) $ 30 $ 81 Gains (Losses) related to investment securities, net $ — $ — $ — Total derivatives designated as net investment hedges (250) 30 81 — — — Total $ (96) $ 81 $ 57 $ 72 $ 17 $ 26 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 11. 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 December 31, 2020 totaled approximately $3.91 billion, against which we provided $1.69 billion of collateral in the normal course of business. If our credit related contingent features underlying these agreements were triggered as of December 31, 2020, the maximum additional collateral we would be required to post to our counterparties is approximately $2.22 billion. |
Offsetting Arrangements
Offsetting Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Offsetting [Abstract] | |
Offsetting Arrangements | Offsetting Arrangements Certain of our transactions are subject to master netting agreements that allow us to net receivables and payables by contract and settlement type. For those legally enforceable contracts, we net receivables and payables with the same counterparty on our statement of condition. In addition to netting receivables and payables with our derivatives counterparty where a legal and enforceable netting arrangement exist, we also net related cash collateral received and transferred up to the fair value exposure amount. With respect to our securities financing arrangements, we net balances outstanding on our consolidated statement of condition for those transactions that met the netting requirements and were transacted under a legally enforceable netting arrangement with the counterparty. Securities received as collateral under securities financing or derivatives transactions can be transferred as collateral in many instances. The securities received as proceeds under secured lending transactions are recorded at a value that approximates fair value in other assets in our consolidated statement of condition with a related liability to return the collateral, if we have the right to transfer or re-pledge the collateral. As of December 31, 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 $6.48 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 $3.88 billion and $5.72 million, 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: December 31, 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 $ 25,943 $ (14,271) $ 11,672 $ — $ 11,672 Interest rate contracts (6) 1 — 1 — 1 Cash collateral and securities netting NA (5,869) (5,869) (1,105) (6,974) Total derivatives 25,944 (20,140) 5,804 (1,105) 4,699 Other financial instruments: Resale agreements and securities borrowing (7)(8) 174,461 (153,025) 21,436 (20,568) 868 Total derivatives and other financial instruments $ 200,405 $ (173,165) $ 27,240 $ (21,673) $ 5,567 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 $21.44 billion as of December 31, 2020 were $3.11 billion of resale agreements and $18.33 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 12 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: December 31, 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 $ 25,927 $ (14,271) $ 11,656 $ — $ 11,656 Interest rate contracts (6) 42 — 42 — 42 Other derivative contracts 157 — 157 — 157 Cash collateral and securities netting NA (1,287) (1,287) (1,732) (3,019) Total derivatives 26,126 (15,558) 10,568 (1,732) 8,836 Other financial instruments: Repurchase agreements and securities lending (7)(8) 165,793 (153,025) 12,768 (12,448) 320 Total derivatives and other financial instruments $ 191,919 $ (168,583) $ 23,336 $ (14,180) $ 9,156 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 $12.77 billion as of December 31, 2020 were $3.41 billion of repurchase agreements and $9.36 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 liabilities, respectively, in our consolidated statement of condition. Refer to Note 12 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 December 31, 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 $ 152,140 $ — $ — $ 152,140 $ 156,465 $ — $ — $ 156,465 Total 152,140 — — 152,140 156,465 — — 156,465 Securities lending transactions: US Treasury and agency securities — — — — 15 — — 15 Corporate debt securities 110 — — 110 354 — — 354 Equity securities 7,578 56 1,156 8,790 7,389 — 130 7,519 Other (1) 4,753 — — 4,753 7,500 — — 7,500 Total 12,441 56 1,156 13,653 15,258 — 130 15,388 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 164,581 $ 56 $ 1,156 $ 165,793 $ 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 | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Guarantees | Commitments and Guarantees 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) December 31, 2020 December 31, 2019 Commitments: Unfunded credit facilities $ 34,213 $ 29,697 Guarantees (1) : Indemnified securities financing $ 440,875 $ 367,901 Standby letters of credit 3,330 3,324 (1) 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. Unfunded Credit Facilities Unfunded credit facilities consist primarily of liquidity facilities provided to our fund and municipal counterparties, as well as commitments to purchase commercial real estate and leveraged loans that have not yet settled. As of December 31, 2020, approximately 73% of our unfunded commitments to extend credit expire within one year. Since many of these commitments are expected to expire or renew without being drawn upon, the gross contractual amounts do not necessarily represent our future cash requirements. Indemnified Securities Financing On behalf of our clients, we lend their securities, as agent, to brokers and other institutions. In most circumstances, we indemnify our clients for the fair market value of those securities against a failure of the borrower to return such securities. We require the borrowers to maintain collateral in an amount in excess of 100% of the fair market value of the securities borrowed. Securities on loan and the collateral are revalued daily to determine if additional collateral is necessary or if excess collateral is required to be returned to the borrower. Collateral received in connection with our securities lending services is held by us as agent and is not recorded in our consolidated statement of condition. The cash collateral held by us as agent is invested on behalf of our clients. In certain cases, the cash collateral is invested in third-party repurchase agreements, for which we indemnify the client against the loss of the principal invested. We require the counterparty to the indemnified repurchase agreement to provide collateral in an amount in excess of 100% of the amount of the repurchase agreement. In our role as agent, the indemnified repurchase agreements and the related collateral held by us are not recorded in our consolidated statement of condition. 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) December 31, 2020 December 31, 2019 Fair value of indemnified securities financing $ 440,875 $ 367,901 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 463,273 385,428 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 54,432 45,658 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 58,092 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 December 31, 2020 and December 31, 2019, we had approximately $18.33 billion and $18.52 billion, respectively, of collateral provided and approximately $9.36 billion and $10.77 billion, respectively, of collateral received from clients in connection with our participation in principal securities finance transactions. Stable Value Protection Stable value funds wrapped by us are high quality diversified portfolios of short intermediate duration fixed-income investments. Stable value contracts are derivative contracts that also qualify as guarantees. The notional amount under non-hedging derivatives, provided in Note 10, generally represents our maximum exposure under these derivatives contracts. However, exposure to various stable value contracts is contractually limited to substantially lower amounts than the notional values, which represent the total assets of the stable value funds. Standby Letters of Credit Standby letters of credit provide credit enhancement to our municipal clients to support the issuance of capital markets financing. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 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 December 31, 2020, our aggregate accruals for loss contingencies for legal, regulatory and related matters totaled approximately $144 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 December 31, 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 $40 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 $370 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 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 $308 million as of December 31, 2020 increased 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, including amended returns, for tax years 2014-2018. The earliest tax year open to examination in jurisdictions where we have material operations is 2013. Management believes that we have sufficiently accrued liabilities as of December 31, 2020 for potential tax exposures. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest EntitiesWe are involved, in the normal course of our business, with various types of special purpose entities, some of which meet the definition of VIEs. When evaluating a VIE for consolidation, we must determine whether or not we have a variable interest in the entity. Variable interests are investments or other interests that absorb portions of an entity’s expected losses or receive portions of the entity’s expected returns. If it is determined that we do not have a variable interest in the VIE, no further analysis is required and we do not consolidate the VIE. If we hold a variable interest in a VIE, we are required by U.S. GAAP to consolidate that VIE when we have a controlling financial interest in the VIE and therefore are deemed to be the primary beneficiary. We are determined to have a controlling financial interest in a VIE when it has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to that VIE. This determination is evaluated periodically as facts and circumstances change. Asset-Backed Investment Securities We invest in various forms of ABS, which we carry in our investment securities portfolio. These ABS meet the U.S. GAAP definition of asset securitization entities, which are considered to be VIEs. We are not considered to be the primary beneficiary of these VIEs since we do not have control over their activities. Additional information about our ABS is provided in Note 3. 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 December 31, 2020 and December 31, 2019, we carried AFS investment securities, composed of securities related to state and political subdivisions, with a fair value of $0.70 billion and $0.94 billion, respectively, and other short-term borrowings of $0.62 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. We transfer assets to the trusts from our investment securities portfolio at adjusted book value, and the trusts finance the acquisition of these assets by selling certificated interests issued by the trust to third-party investors and to us as residual holder. These transfers do not meet the de-recognition criteria defined by U.S. GAAP, and therefore, the assets continue to be recorded in our consolidated financial statements. The trusts had a weighted-average life of approximately 2.7 years as of December 31, 2020, compared to approximately 3.0 years as of December 31, 2019. Under separate legal agreements, we provide liquidity facilities to these trusts and, with respect to certain securities, letters of credit. As of December 31, 2020, our commitments to the trusts under these liquidity facilities and/or letters of credit totaled $0.62 billion, and neither of the liquidity facilities nor letters of credit were utilized. In the event that our obligations under these liquidity facilities are triggered, no material impact to our consolidated results of operations or financial condition is expected to occur, because the securities are already recorded at fair value in our consolidated statement of condition. In addition, neither creditors or third-party investors in the trusts have any recourse to our general credit other than through the liquidity facilities and letters of credit noted above. Interests in Investment Funds In the normal course of business, we manage various types of investment funds through State Street Global Advisors in which our clients are investors, including State Street Global Advisors commingled investment vehicles and other similar investment structures. The majority of our AUM are contained within such funds. The services we provide to these funds generate management fee revenue. From time to time, we may invest cash in the funds in order for the funds to establish a performance history for newly-launched strategies, referred to as seed capital, or for other purposes. With respect to our interests in funds that meet the definition of a VIE, a primary beneficiary assessment is performed to determine if we have a controlling financial interest. As part of our assessment, we consider all the facts and circumstances regarding the terms and characteristics of the variable interest(s), the design and characteristics of the fund and the other involvements of the enterprise with the fund. Upon consolidation of certain funds, we retain the specialized investment company accounting rules followed by the underlying funds. All of the underlying investments held by such consolidated funds are carried at fair value, with corresponding changes in the investments’ fair values reflected in foreign exchange trading services revenue in our consolidated statement of income. When we no longer control these funds due to a reduced ownership interest or other reasons, the funds are de-consolidated and accounted for under another accounting method if we continue to maintain investments in the funds. As of December 31, 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 December 31, 2020 and December 31, 2019, our maximum total exposure associated with the consolidated sponsored investment funds totaled $13 million and $15 million, respectively, and represented the value of our economic ownership interest in the funds. Our conclusion to consolidate a fund may vary from period to period, most commonly as a result of fluctuation in our ownership interest as a result of changes in the number of fund shares held by either us or by third parties. Given that the funds follow specialized investment company accounting rules which prescribe fair value, a de-consolidation generally would not result in gains or losses for us. The net assets of any consolidated fund are solely available to settle the liabilities of the fund and to settle any investors’ ownership redemption requests, including any seed capital invested in the fund by us. We are not contractually required to provide financial or any other support to any of our funds. In addition, neither creditors nor equity investors in the funds have any recourse to our general credit. As of December 31, 2020 and December 31, 2019, 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 $22 million and $21 million as of December 31, 2020 and December 31, 2019, respectively, 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 | 12 Months Ended |
Dec. 31, 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 December 31, 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 December 31, 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 (3) 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%, or 3.81350% effective December 15, 2020 Quarterly 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. (3) Series F preferred stock is redeemable on September 15, 2020 and on each succeeding dividend payment date. We did not elect redemption on September 15, 2020 or December 15, 2020. We redeemed all outstanding Series C non-cumulative perpetual preferred stock on 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. The difference of $9 million between the redemption value and the net carrying value resulted in an EPS impact of approximately ($0.03) per share in the first quarter of 2020. On January 14, 2021, we announced that we will redeem on March 15, 2021 an aggregate of $500 million, or 5,000 of the 7,500 outstanding shares of our non-cumulative perpetual preferred stock, Series F, for cash at a redemption price of $100,000 per share (equivalent to $1,000 per depositary share) plus all declared and unpaid dividends. A cash dividend of $953.38 per share of Series F Preferred Stock (or approximately $9.5338 per depositary share) has been declared for the period from December 15, 2020 up to but not including March 15, 2021 (the “March Dividend”). The March Dividend will be paid separately to the holders of record of the Series F Preferred Stock as of March 1, 2021 in the customary manner. Accordingly, there will not be any declared and unpaid dividends included in the redemption price. The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated: Years Ended December 31, 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 $ 1,313 $ 0.33 $ 6 $ 5,250 $ 1.32 $ 26 Series D 5,900 1.48 44 5,900 1.48 44 Series E — — — 6,000 1.52 45 Series F 6,223 62.23 47 5,250 52.50 40 Series G 5,352 1.32 27 5,352 1.32 27 Series H 5,625 56.25 28 5,625 56.25 28 Total $ 152 $ 210 In January 2021, we declared dividends on our series D, F, and G preferred stock of approximately $1,475, $953, and $1,338, respectively, per share, or approximately $0.37, $9.53, and $0.33, respectively, per depositary share. These dividends total approximately $11 million, $7 million, and $7 million on our series D, F, and G preferred stock, respectively, which will be paid in March 2021. 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). We repurchased $500 million of our common stock in each of the third and fourth quarters of 2019 and the first quarter of 2020 under the 2019 Program. On March 16, 2020, we, along with the other U.S. G-SIBs, suspended common share repurchases and maintained this suspension through the fourth quarter of 2020 in response to the COVID-19 pandemic. This suspension was consistent with limitations imposed by the Federal Reserve beginning in the second quarter of 2020. As a result, we had no repurchases of our common stock in the second, third or fourth quarters of 2020. In June 2020, concurrent with the release of the CCAR 2020 results, the Federal Reserve announced that all CCAR banks were required to resubmit their capital plan and stress test results based on scenarios to be provided in September 2020. Scenarios were provided on September 17, 2020 with materials due on November 2, 2020. In December 2020, the Federal Reserve issued results of 2020 resubmission stress tests and authorized us to continue to pay common stock dividends at current levels and to resume repurchasing common shares in the first quarter of 2021. In January 2021, our Board authorized a share repurchase program for the purchase of up to $475 million of our common stock through March 31, 2021. 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 for the period indicated: Year Ended December 31, 2020 Shares Acquired (In millions) Average Cost per Share Total Acquired (In millions) 2019 Program 6.5 $ 77.35 $ 500 Total 6.5 77.35 $ 500 The table below presents the dividends declared on common stock for the periods indicated: Years Ended December 31, 2020 2019 Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Common Stock $ 2.08 $ 734 $ 1.98 $ 728 Accumulated Other Comprehensive Income (Loss) The following table presents the after-tax components of AOCI for the periods indicated: Years Ended December 31, (In millions) 2020 2019 2018 Net unrealized gains (losses) on cash flow hedges $ 57 $ (70) $ (89) Net unrealized gains (losses) on available-for-sale securities portfolio 936 426 (193) Net unrealized gains (losses) related to reclassified available-for-sale securities (55) 19 58 Net unrealized gains (losses) on available-for-sale securities 881 445 (135) Net unrealized (losses) on available-for-sale securities designated in fair value hedges (33) (36) (40) Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries (204) 46 16 Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (2) (2) (2) Net unrealized (losses) on retirement plans (178) (187) (143) Foreign currency translation (334) (1,072) (963) Total $ 187 $ (876) $ (1,356) 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 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 13 563 33 2 — (42) 569 Reclassification of certain tax effects (1) (6) 21 (3) (1) (28) (67) (84) Amounts reclassified into (out of) earnings 12 — — (1) (16) — (5) Other comprehensive income (loss) 19 584 30 — (44) (109) 480 Balance as of December 31, 2019 $ (70) $ 409 $ 46 $ (2) $ (187) $ (1,072) $ (876) Other comprehensive income (loss) before reclassifications 75 439 (250) — — 738 1,002 Amounts reclassified into earnings 52 — — — 9 — 61 Other comprehensive income (loss) 127 439 (250) — 9 738 1,063 Balance as of December 31, 2020 $ 57 $ 848 $ (204) $ (2) $ (178) $ (334) $ 187 (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: Years Ended December 31, 2020 2019 (In millions) Amounts Reclassified into Affected Line Item in Consolidated Statement of Income Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of zero and zero, respectively $ — $ (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 $20 and $5 52 12 Net interest income reclassified from other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of $3 and ($8), respectively 9 (16) Compensation and employee benefits expenses Total reclassifications (into) out of Accumulated other comprehensive loss $ 61 $ (5) |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Regulatory Capital | Regulatory Capital We are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum regulatory capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial condition. Under current regulatory capital adequacy guidelines, we must meet specified capital requirements that involve quantitative measures of our consolidated assets, liabilities and off-balance sheet exposures calculated in conformity with regulatory accounting practices. Our capital components and their classifications are subject to qualitative judgments by regulators about components, risk weightings and other factors. As required by the Dodd-Frank Act, we and State Street Bank, as advanced approaches banking organizations, are subject to a "capital floor" in the calculation and assessment of regulatory capital adequacy by U.S. banking regulators. Beginning on January 1, 2015, we were required to calculate our risk- based capital ratios using both the advanced approaches and the standardized approach. As a result, from January 1, 2015 going forward, our risk-based capital ratios for regulatory assessment purposes are the lower of each ratio calculated under the standardized approach and the advanced approaches. The methods for the calculation of our and State Street Bank's risk-based capital ratios have changed as the provisions of the Basel III rule related to the numerator (capital) and denominator (RWA) were phased in, and as we calculated our RWA using the advanced approaches. These ongoing methodological changes have resulted in differences in our reported capital ratios from one reporting period to the next that are independent of applicable changes to our capital base, our asset composition, our off-balance sheet exposures or our risk profile. As of December 31, 2020, we and State Street Bank exceeded all regulatory capital adequacy requirements to which we were subject. As of December 31, 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 December 31, 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 as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III rule were phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table. State Street Corporation State Street Bank (Dollars in millions) Basel III Advanced Approaches December 31, 2020 Basel III Standardized Approach December 31, 2020 Basel III Advanced Approaches December 31, 2019 Basel III Standardized Approach December 31, 2019 Basel III Advanced Approaches December 31, 2020 Basel III Standardized Approach December 31, 2020 Basel III Advanced Approaches December 31, 2019 Basel III Standardized Approach December 31, 2019 Common shareholders' equity: Common stock and related surplus $ 10,709 $ 10,709 $ 10,636 $ 10,636 $ 12,893 $ 12,893 $ 12,893 $ 12,893 Retained earnings 23,442 23,442 21,918 21,918 12,939 12,939 13,218 13,218 Accumulated other comprehensive income (loss) 187 187 (870) (870) 371 371 (654) (654) Treasury stock, at cost (10,609) (10,609) (10,209) (10,209) — — — — Total 23,729 23,729 21,475 21,475 26,203 26,203 25,457 25,457 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (9,019) (9,019) (9,112) (9,112) (8,745) (8,745) (8,839) (8,839) Other adjustments (1) (333) (333) (150) (150) (152) (152) (1) (1) Common equity tier 1 capital 14,377 14,377 12,213 12,213 17,306 17,306 16,617 16,617 Preferred stock 2,471 2,471 2,962 2,962 — — — — Tier 1 capital 16,848 16,848 15,175 15,175 17,306 17,306 16,617 16,617 Qualifying subordinated long-term debt 961 961 1,095 1,095 966 966 1,099 1,099 Allowance for credit losses 1 148 5 90 10 148 3 90 Total capital $ 17,810 $ 17,957 $ 16,275 $ 16,360 $ 18,282 $ 18,420 $ 17,719 $ 17,806 Risk-weighted assets: Credit risk (2) $ 63,367 $ 114,892 $ 54,763 $ 102,367 $ 58,960 $ 110,797 $ 51,610 $ 98,979 Operational risk (3) 44,150 NA 47,963 NA 43,663 NA 44,138 NA Market risk 2,188 2,188 1,638 1,638 2,188 2,188 1,638 1,638 Total risk-weighted assets $ 109,705 $ 117,080 $ 104,364 $ 104,005 $ 104,811 $ 112,985 $ 97,386 $ 100,617 Adjusted quarterly average assets $ 263,490 $ 263,490 $ 219,624 $ 219,624 $ 260,489 $ 260,489 $ 216,397 $ 216,397 Capital Ratios: 2020 Minimum Requirements (4) 2019 Minimum Requirements (5) Common equity tier 1 capital 8.0 % 8.5 % 13.1 % 12.3 % 11.7 % 11.7 % 16.5 % 15.3 % 17.1 % 16.5 % Tier 1 capital 9.5 10.0 15.4 14.4 14.5 14.6 16.5 15.3 17.1 16.5 Total capital 11.5 12.0 16.2 15.3 15.6 15.7 17.4 16.3 18.2 17.7 Tier 1 leverage (6) 4.0 4.0 6.4 6.4 6.9 6.9 6.6 6.6 7.7 7.7 (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. (4) Assuming a countercyclical buffer of 0%, the minimum requirements include a capital conservation buffer and a stress capital buffer for advanced and standardized, respectively, and a G-SIB surcharge. (5) Assuming a countercyclical buffer of 0%, the minimum requirements include a capital conservation buffer and a G-SIB surcharge. (6) State Street Bank is required to maintain a minimum Tier 1 leverage ratio of 5% as it is the insured depository institution subsidiary of one of the eight US G-SIBs. NA Not applicable |
Net Interest Income
Net Interest Income | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, (In millions) 2020 2019 2018 Interest income: Interest-bearing deposits with banks $ 76 $ 416 $ 387 Investment securities: U.S. Treasury and federal agencies 1,174 1,443 1,178 State and political subdivisions 37 49 143 Other investments 366 505 560 Investment securities purchased under money market liquidity facility 117 — — Total Investment securities 1,694 1,997 1,881 Securities purchased under resale agreements 126 364 335 Loans and leases 624 769 687 Other interest-earning assets 55 395 372 Total interest income 2,575 3,941 3,662 Interest expense: Interest-bearing deposits (117) 663 363 Short term borrowings under money market liquidity facility 101 — — Securities sold under repurchase agreements 4 31 13 Other short-term borrowings 17 21 17 Long-term debt 312 414 389 Other interest-bearing liabilities 58 246 209 Total interest expense 375 1,375 991 Net interest income $ 2,200 $ 2,566 $ 2,671 |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation We record compensation expense for equity-based awards, such as deferred stock and performance awards, based on the closing price of our common stock on the date of grant, adjusted if appropriate, based on the eligibility of the award to receive dividends. Compensation expense related to equity-based awards with service-only conditions and terms that provide for a graded vesting schedule is recognized on a straight-line basis over the required service period for the entire award. Compensation expense related to equity-based awards with performance conditions and terms that provide for a graded vesting schedule is recognized over the requisite service period for each separately vesting tranche of the award, and is based on the probable outcome of the performance conditions at each reporting date. Compensation expense is adjusted for assumptions with respect to the estimated amount of awards that will be forfeited prior to vesting, and for employees who have met certain retirement eligibility criteria. Compensation expense for common stock awards granted to employees meeting early retirement eligibility criteria is fully expensed on the grant date. Dividend equivalents for certain equity-based awards are paid on stock units on a current basis prior to vesting and distribution. The 2017 Stock Incentive Plan, or 2017 Plan, was approved by shareholders in May 2017 for issuance of stock and stock based awards. Awards may be made under the 2017 Plan for (i) up to 8.3 million shares of common stock plus (ii) up to an additional 28.5 million shares that were available to be issued under the 2006 Equity Incentive Plan, or 2006 Plan, or may become available for issuance under the 2006 Plan due to expiration, termination, cancellation, forfeiture or repurchase of awards granted under the 2006 Plan. As of December 31, 2020, a total of 20.5 million shares from the 2006 Plan have been added to and may be issued from the 2017 Plan. The following table presents the cumulative total number of shares that was awarded under the 2017 Plan and the 2006 Plan for the periods indicated: As of December 31, (In millions) 2020 2019 2018 Total number of shares awarded under the 2006 Plan 68.9 68.9 68.9 Total number of shares awarded under the 2017 Plan 11.3 7.6 3.9 The 2017 Plan allows for shares withheld in payment of the exercise price of an award or in satisfaction of tax withholding requirements, shares forfeited due to employee termination, shares expired under option awards, or shares not delivered when performance conditions have not been met, to be added back to the pool of shares available for issuance under the 2017 Plan. From inception to December 31, 2020, 1.7 million shares had been awarded under the 2017 Plan but not delivered, and have become available for re-issue. As of December 31, 2020, a total of 19.2 million shares were available for future issuance under the 2017 Plan. For deferred stock awards granted under the Plans, no common stock is issued at the time of grant and the award does not possess dividend and voting rights. Generally, these grants vest over one Beginning with 2012, malus-based forfeiture provisions were included in deferred stock awards granted to employees identified as “material risk-takers,” as defined by management. These malus- based forfeiture provisions provide for the reduction or cancellation of unvested deferred compensation, such as deferred stock awards and performance based awards, if it is determined that a material risk-taker made risk-based decisions that exposed us to inappropriate risks that resulted in a material unexpected loss at the business-unit, line-of-business or corporate level. In addition, awards granted to certain of our senior executives, as well as awards granted to individuals in certain jurisdictions, may be subject to recoupment after vesting (if applicable) and delivery to the individual in specified circumstances generally relating to fraud or willful misconduct by the individual that results in material harm to us or a material financial restatement. Compensation expense related to deferred stock awards and performance awards, which we record as a component of compensation and employee benefits expense in our consolidated statement of income, was $240 million, $235 million and $262 million for the years ended December 31, 2020, 2019 and 2018, respectively. Such expense for 2020, 2019 and 2018 excluded an expense of $29 million, a release of $4 million and an expense of $45 million, respectively, associated with acceleration of expense in connection with targeted staff reductions. This expense was included in the severance-related portion of the associated restructuring or repositioning charges recorded in each respective year. For the years ended December 31, 2020, 2019 and 2018, no stock appreciation rights were exercised. As of December 31, 2020, there was no unrecognized compensation cost related to stock appreciation rights. Shares (In thousands) Weighted-Average Grant Date Fair Value Deferred Stock Awards: Outstanding as of December 31, 2018 5,975 $ 77.07 Granted 3,168 66.68 Vested (3,089) 71.20 Forfeited (220) 75.85 Outstanding as of December 31, 2019 5,834 74.33 Granted 2,926 63.56 Vested (2,938) 71.33 Forfeited (136) 71.79 Outstanding as of December 31, 2020 5,686 69.70 The total fair value of deferred stock awards vested for the years ended December 31, 2020, 2019 and 2018, based on the weighted average grant date fair value in each respective year, was $210 million, $220 million and $230 million, respectively. As of December 31, 2020, total unrecognized compensation cost related to deferred stock awards, net of estimated forfeitures, was $199 million, which is expected to be recognized over a weighted-average period of 2.3 years. Shares (In thousands) Weighted-Average Grant Date Fair Value Performance Awards: Outstanding as of December 31, 2018 2,157 $ 69.36 Granted 510 66.04 Forfeited (96) 74.82 Paid out (432) 51.01 Outstanding as of December 31, 2019 2,139 71.82 Granted 811 62.58 Forfeited (23) 94.91 Paid out (410) 73.10 Outstanding as of December 31, 2020 2,517 68.42 The total fair value of performance awards vested for the years ended December 31, 2020, 2019 and 2018, based on the weighted average grant date fair value in each respective year, was $30 million, $22 million and $32 million, respectively. As of December 31, 2020, total unrecognized compensation cost related to performance awards, net of estimated forfeitures, was $26 million, which is expected to be recognized over a weighted-average period of 1.6 years. We utilize either treasury shares or authorized but unissued shares to satisfy the issuance of common stock under our equity incentive plans. We do not have a specific policy concerning purchases of our common stock to satisfy stock issuances. We have a general policy concerning purchases of our common stock to meet issuances under our employee benefit plans, including other corporate purposes. Various factors determine the amount and timing of our purchases of our common stock, including regulatory reviews and approvals or non-objections, our regulatory capital requirements, the number of shares we expect to issue under employee benefit plans, market conditions (including the trading price of our common stock), and legal considerations. These factors can change at any time, and the number of shares of common stock we will purchase or when we will purchase them cannot be assured. Additional information on our common stock purchase program is provided in Note 15. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Defined Benefit Pension and Other Post-Retirement Benefit Plans State Street Bank and certain of its U.S. subsidiaries participate in a non-contributory, tax-qualified defined benefit pension plan. The U.S. defined benefit pension plan was frozen as of December 31, 2007 and no new employees were eligible to participate after that date. We have agreed to contribute sufficient amounts as necessary to meet the benefits paid to plan participants and to fund the plan’s service cost, plus interest. U.S. employee account balances earn annual interest credits until the employee begins receiving benefits. Non-U.S. employees participate in local defined benefit plans which are funded as required in each local jurisdiction. In addition to the defined benefit pension plans, we have non-qualified unfunded SERPs that provide certain officers with defined pension benefits in excess of allowable qualified plan limits. State Street Bank and certain of its U.S. subsidiaries also participate in a post-retirement plan that provides health care benefits for certain retired employees. The total expense for these tax-qualified and non-qualified plans was $25 million, $8 million and $11 million in 2020, 2019 and 2018, respectively. We recognize the funded status of our defined benefit pension plans and other post-retirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, in the consolidated statement of position. The assets held by the defined benefit pension plans are largely made up of common, collective funds that are liquid and invest principally in U.S. equities and high-quality fixed-income investments. The majority of these assets fall within Level 2 of the fair value hierarchy. The benefit obligations associated with our primary U.S. and non-U.S. defined benefit plans, non-qualified unfunded supplemental retirement plans and post-retirement plans were $1.53 billion, $69 million and $4 million, respectively, as of December 31, 2020 and $1.37 billion, $88 million and $10 million, respectively, as of December 31, 2019. As the primary defined benefit plans are frozen, the benefit obligation will only vary over time as a result of changes in market interest rates, the life expectancy of the plan participants and payments made from the plans. The primary U.S. and non-U.S. defined benefit pension plans were underfunded by $15 million and overfunded by $10 million as of December 31, 2020 and 2019, respectively. The non-qualified supplemental retirement plans were underfunded by $69 million and $88 million as of December 31, 2020 and 2019, respectively. The other post-retirement benefit plans were underfunded by $4 million and $10 million as of December 31, 2020 and 2019, respectively. The underfunded status is included in other liabilities. Defined Contribution Retirement Plans We contribute to employer-sponsored U.S. and non-U.S. defined contribution plans. Our contribution to these plans was $168 million, $167 million and $170 million in 2020, 2019 and 2018, respectively. |
Occupancy Expense and Informati
Occupancy Expense and Information Systems and Communications Expense | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Occupancy Expense and Information Systems and Communications Expense | Occupancy Expense and Information Systems and Communications Expense Upon adoption of Topic 842 on January 1, 2019, we recognized right-of-use assets of approximately $0.91 billion and lease liabilities of approximately $1.06 billion. Occupancy expense and information systems and communications expense include depreciation of buildings, leasehold improvements, computer hardware and software, equipment, furniture and fixtures, and amortization of lease right-of-use assets. Total depreciation and amortization expense in 2020, 2019 and 2018 was $858 million, $842 million and $599 million, respectively. We recorded a repositioning charge of $51 million in occupancy expenses in 2020, consisting of a $46 million impairment of right-of-use assets and consisting of $5 million for one-time repairs. We use our incremental borrowing rate to determine the present value of the lease payments for finance and operating leases described below. Additionally, we do not separate nonlease components such as real estate taxes and common area maintenance from base lease payments. As of December 31, 2020 and 2019, an aggregate net book value of $55 million and $78 million, respectively, for the finance lease related to our One Lincoln Street Boston headquarters was recorded in premises and equipment, with the related liability of $103 million and $136 million, respectively, recorded in long-term debt, in our consolidated statement of condition. Finance lease right-of-use asset amortization is recorded in occupancy expense on a straight-line basis in our consolidated statement of income over the respective lease term. As of December 31, 2020, accumulated amortization of the finance lease right-of-use asset was $75 million. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. In 2020 and 2019, interest expense related to the finance lease obligation reflected in NII was $9 million and $11 million, respectively. As of December 31, 2020, an aggregate net book value of $720 million for the operating lease right-of-use assets is recorded in other assets, with the related lease liability of $891 million recorded in accrued expenses and other liabilities in our consolidated statement of condition. We have entered into non-cancellable operating leases for premises and equipment. Nearly all of these leases include renewal options, and only those reasonably certain of being exercised are included in the term of the lease. Costs for operating leases are recorded on a straight-line basis which includes both interest expense and right-of-use asset amortization. Operating lease costs for office space are recorded in occupancy expense. Costs related to operating leases for equipment are recorded in information systems and communications expense. As of December 31, 2020, we have additional operating leases, primarily for office space, that have not yet commenced of approximately $462 million of undiscounted future minimum lease payments. These leases will commence between fiscal year 2021 and fiscal year 2023 with lease terms of 10 to 15 years. The majority of these future payments relate to the new Boston headquarters lease executed in the first quarter of 2019, replacing the One Lincoln Street Boston property. None of our leases contain residual value guarantees. The following table presents lease costs, sublease rental income, cash flows and new leases arising from lease transactions for 2020: Years Ended December 31, (In millions) 2020 2019 Finance lease: Amortization of right-of-use assets $ 20 $ 21 Interest on lease liabilities 9 11 Total finance lease expense 29 32 Sublease income (11) (9) Net finance lease expense 18 23 Operating lease: Operating lease expense 169 179 Sublease income (16) (6) Net operating lease expense 153 173 Net lease expense $ 171 $ 196 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 9 $ 11 Operating cash flows from operating leases 192 201 Financing cash flows from finance leases 33 54 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 38 $ 120 Finance leases — — The following table presents future minimum lease payments under non-cancellable leases as of December 31, 2020: (In millions) Operating Leases Finance Leases Total 2021 $ 186 $ 41 $ 227 2022 167 41 208 2023 147 31 178 2024 112 — 112 2025 93 — 93 Thereafter 275 — 275 Total future minimum lease payments 980 113 1,093 Less imputed interest (89) (10) (99) Total $ 891 $ 103 $ 994 The following table presents details related to remaining lease terms and discount rate as of December 31, 2020: December 31, 2020 December 31, 2019 Weighted-average remaining lease term (in years): Finance leases 2.7 3.8 Operating leases 7.1 7.6 Weighted-average discount rate: Finance leases 7 % 7 % Operating leases 3 % 3 % |
Occupancy Expense and Information Systems and Communications Expense | Occupancy Expense and Information Systems and Communications Expense Upon adoption of Topic 842 on January 1, 2019, we recognized right-of-use assets of approximately $0.91 billion and lease liabilities of approximately $1.06 billion. Occupancy expense and information systems and communications expense include depreciation of buildings, leasehold improvements, computer hardware and software, equipment, furniture and fixtures, and amortization of lease right-of-use assets. Total depreciation and amortization expense in 2020, 2019 and 2018 was $858 million, $842 million and $599 million, respectively. We recorded a repositioning charge of $51 million in occupancy expenses in 2020, consisting of a $46 million impairment of right-of-use assets and consisting of $5 million for one-time repairs. We use our incremental borrowing rate to determine the present value of the lease payments for finance and operating leases described below. Additionally, we do not separate nonlease components such as real estate taxes and common area maintenance from base lease payments. As of December 31, 2020 and 2019, an aggregate net book value of $55 million and $78 million, respectively, for the finance lease related to our One Lincoln Street Boston headquarters was recorded in premises and equipment, with the related liability of $103 million and $136 million, respectively, recorded in long-term debt, in our consolidated statement of condition. Finance lease right-of-use asset amortization is recorded in occupancy expense on a straight-line basis in our consolidated statement of income over the respective lease term. As of December 31, 2020, accumulated amortization of the finance lease right-of-use asset was $75 million. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. In 2020 and 2019, interest expense related to the finance lease obligation reflected in NII was $9 million and $11 million, respectively. As of December 31, 2020, an aggregate net book value of $720 million for the operating lease right-of-use assets is recorded in other assets, with the related lease liability of $891 million recorded in accrued expenses and other liabilities in our consolidated statement of condition. We have entered into non-cancellable operating leases for premises and equipment. Nearly all of these leases include renewal options, and only those reasonably certain of being exercised are included in the term of the lease. Costs for operating leases are recorded on a straight-line basis which includes both interest expense and right-of-use asset amortization. Operating lease costs for office space are recorded in occupancy expense. Costs related to operating leases for equipment are recorded in information systems and communications expense. As of December 31, 2020, we have additional operating leases, primarily for office space, that have not yet commenced of approximately $462 million of undiscounted future minimum lease payments. These leases will commence between fiscal year 2021 and fiscal year 2023 with lease terms of 10 to 15 years. The majority of these future payments relate to the new Boston headquarters lease executed in the first quarter of 2019, replacing the One Lincoln Street Boston property. None of our leases contain residual value guarantees. The following table presents lease costs, sublease rental income, cash flows and new leases arising from lease transactions for 2020: Years Ended December 31, (In millions) 2020 2019 Finance lease: Amortization of right-of-use assets $ 20 $ 21 Interest on lease liabilities 9 11 Total finance lease expense 29 32 Sublease income (11) (9) Net finance lease expense 18 23 Operating lease: Operating lease expense 169 179 Sublease income (16) (6) Net operating lease expense 153 173 Net lease expense $ 171 $ 196 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 9 $ 11 Operating cash flows from operating leases 192 201 Financing cash flows from finance leases 33 54 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 38 $ 120 Finance leases — — The following table presents future minimum lease payments under non-cancellable leases as of December 31, 2020: (In millions) Operating Leases Finance Leases Total 2021 $ 186 $ 41 $ 227 2022 167 41 208 2023 147 31 178 2024 112 — 112 2025 93 — 93 Thereafter 275 — 275 Total future minimum lease payments 980 113 1,093 Less imputed interest (89) (10) (99) Total $ 891 $ 103 $ 994 The following table presents details related to remaining lease terms and discount rate as of December 31, 2020: December 31, 2020 December 31, 2019 Weighted-average remaining lease term (in years): Finance leases 2.7 3.8 Operating leases 7.1 7.6 Weighted-average discount rate: Finance leases 7 % 7 % Operating leases 3 % 3 % |
Expenses
Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Other Expenses [Abstract] | |
Expenses | Expenses The following table presents the components of other expenses for the periods indicated: Years Ended December 31, (In millions) 2020 2019 2018 Professional services $ 364 $ 321 $ 357 Sales advertising public relations 77 114 115 Regulatory fees and assessments 61 73 91 Securities processing 41 75 52 Donations 20 51 12 Bank operations 18 43 70 Insurance 14 19 18 Other 370 566 461 Total other expenses $ 965 $ 1,262 $ 1,176 Acquisition Costs We recorded approximately $54 million of acquisition costs in 2020 compared to $79 million in 2019 and $31 million in 2018, related to our acquisition of CRD. Restructuring and Repositioning Charges Repositioning Charges In 2020, we recorded $133 million of repositioning charges, including $82 million of compensation and employee benefits and $51 million of occupancy expenses, to further drive automation of processes and organizational simplification enabling workforce rationalization and to reduce our real estate footprint by approximately 13% of our total square footage. In 2019, we recorded $110 million of repositioning charges, including $98 million of compensation and employee benefits expenses and $12 million of occupancy costs, to further drive process automation, information technology optimizations and organization rationalization in 2020. 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, 2017 $ 166 $ 32 $ 3 $ 201 Accruals for Beacon (7) — — (7) Accruals for Repositioning Charges 259 41 — 300 Payments and Other Adjustments (115) (36) (2) (153) Accrual Balance at December 31, 2018 303 37 1 341 Accruals for Beacon (2) — — (2) Accruals for Repositioning Charges 98 12 — 110 Payments and Other Adjustments (209) (42) — (251) Accrual Balance at December 31, 2019 190 7 1 198 Accruals for Beacon (4) — — (4) Accruals for Repositioning Charges 82 51 — 133 Payments and Other Adjustments (78) (52) (1) (131) Accrual Balance at December 31, 2020 $ 190 $ 6 $ — $ 196 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesWe use an asset-and-liability approach to account for income taxes. Our objective is to recognize the amount of taxes payable or refundable for the current year through charges or credits to the current tax provision, and to recognize deferred tax assets and liabilities for future tax consequences of temporary differences between amounts reported in our consolidated financial statements and their respective tax bases. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates. The effects of a tax position on our consolidated financial statements are recognized when we believe it is more likely than not that the position will be sustained. A valuation allowance is established if it is considered more likely than not that all or a portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction. The following table presents the components of income tax expense (benefit) for the periods indicated: Years Ended December 31, (In millions) 2020 2019 2018 Current: Federal $ 241 $ 157 $ 122 State 122 86 148 Non-U.S. 310 357 374 Total current expense 673 600 644 Deferred: Federal (168) (6) (128) State 5 33 (22) Non-U.S. (31) (157) 14 Total deferred expense (benefit) (194) (130) (136) Total income tax expense (benefit) $ 479 $ 470 $ 508 The following table presents a reconciliation of the U.S. statutory income tax rate to our effective tax rate based on income before income tax expense for the periods indicated: Years Ended December 31, 2020 2019 2018 U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Changes from statutory rate: State taxes, net of federal benefit 3.8 3.4 3.1 Tax-exempt income (1.3) (1.5) (2.0) Business tax credits (1) (5.1) (5.4) (4.1) Foreign tax differential (0.8) (0.1) (0.6) Foreign legal entity restructuring — (4.3) — Foreign tax credit (benefits)/ limitations (0.9) 2.2 0.2 Deferred tax revaluation — — (1.0) Litigation expense — 1.6 0.3 Other, net (0.2) 0.4 (0.6) Effective tax rate 16.5 % 17.3 % 16.3 % (1) Business tax credits include low-income housing, production and investment tax credits. As of December 31, 2018, the accounting for income tax effects of the TCJA was completed and the 2018 income tax expense included an additional deferred tax benefit of approximately $32 million. Beginning in 2018, the TCJA subjects a U.S. shareholder to current tax on Global Intangible Low-Taxed Income (GILTI) earned by certain foreign subsidiarie s. We have elected to recognize our tax on GILTI as a period expense in the period the tax is incurred. As such, we have included an estimate of this liability in our estimated annual effective tax rate. This adjustment increased our effective tax rate by 0.2%, 0.3% and 0.2% in 2020, 2019 and 2018, respectively, which is reflected in the prior reconciliation table under "Foreign Tax Credit (Benefits)/Limitations". Undistributed indefinitely reinvested earnings of certain foreign subsidiaries amounted to approximately $5.8 billion at December 31, 2020. As a result, no provision has been recorded for state and local or foreign withholding income taxes. If a distribution were to occur, we would be subject to state, local and to foreign withholding tax. It is expected that any distribution will be exempt from federal income tax. Although the foreign withholding tax is generally creditable against U.S. federal income tax, certain credit utilization limitations may result in a net cost. The following table presents significant components of our gross deferred tax assets and gross deferred tax liabilities as of the dates indicated: December 31, (In millions) 2020 2019 Deferred tax assets: Other amortizable assets $ 385 $ 394 Tax credit carryforwards 564 387 Lease obligations 243 254 Deferred compensation 110 120 Restructuring charges and other reserves 129 104 NOL and other carryforwards 101 73 Pension plan 56 66 Foreign currency translation 3 57 Total deferred tax assets 1,591 1,455 Valuation allowance for deferred tax assets (295) (330) Deferred tax assets, net of valuation allowance $ 1,296 $ 1,125 Deferred tax liabilities: Fixed and intangible assets $ 765 $ 763 Investment basis differences 269 258 Right-of-use Assets 187 223 Unrealized gains on investment securities, net 321 86 Other 51 32 Total deferred tax liabilities $ 1,593 $ 1,362 The table below summarizes the deferred tax assets and related valuation allowances recognized as of December 31, 2020: (In millions) Deferred Tax Asset Valuation Allowance Expiration Other amortizable assets $ 385 $ (233) __ Tax credits 564 — 2038-2040 NOLs - Non-U.S. 65 (40) 2026-2031, None Other carryforwards 19 (5) None NOLs - State 17 (17) 2021-2040 Management considers the valuation allowance adequate to reduce the total deferred tax assets to an aggregate amount that will more likely than not be realized. Management has determined that a valuation allowance is not required for the remaining deferred tax assets because it is more likely than not that there will be sufficient taxable income of the appropriate nature within the carryforward periods to realize these assets. At December 31, 2020, 2019 and 2018, the gross unrecognized tax benefits, excluding interest, were $308 million, $149 million and $108 million, respectively. Of this, the amounts that would reduce the effective tax rate, if recognized, are $294 million, $140 million and $100 million, respectively. The reduction in the effective tax rate includes the federal benefit for unrecognized state tax benefits. The following table presents activity related to unrecognized tax benefits as of the dates indicated: December 31, (In millions) 2020 2019 2018 Beginning balance $ 149 $ 108 $ 94 Decrease related to agreements with tax authorities — (17) (40) Increase related to tax positions taken during current year 47 13 12 Increase related to tax positions taken during prior years 137 49 44 Decreases related to a lapse of the applicable statute of limitations (25) (4) (2) Ending balance $ 308 $ 149 $ 108 It is reasonably possible that of the $308 million of unrecognized tax benefits as of December 31, 2020, up to $104 million could decrease within the next 12 months due to the resolution of various audits. Management believes that we have sufficient accrued liabilities as of December 31, 2020 for tax exposures and related interest expense. Income tax expense included related interest and penalties of approximately $6 million, $5 million and $1 million in 2020, 2019 and 2018, respectively. Total accrued interest and penalties were approximately $14 million, $10 million and $8 million as of December 31, 2020, 2019 and 2018, respectively. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic EPS is calculated pursuant to the two-class method, by dividing net income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted EPS is calculated pursuant to the two-class method, by dividing net income available to common shareholders by the total weighted-average number of common shares outstanding for the period plus the shares representing the dilutive effect of equity-based awards. The effect of equity-based awards is excluded from the calculation of diluted EPS in periods in which their effect would be anti-dilutive. The two-class method requires the allocation of undistributed net income between common and participating shareholders. Net income available to common shareholders, presented separately in our consolidated statement of income, is the basis for the calculation of both basic and diluted EPS. Participating securities are composed of unvested and fully vested SERP 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. The following table presents the computation of basic and diluted earnings per common share for the periods indicated: Years Ended December 31, (Dollars in millions, except per share amounts) 2020 2019 2018 Net income $ 2,420 $ 2,242 $ 2,593 Less: Preferred stock dividends (162) (232) (188) Dividends and undistributed earnings allocated to participating securities (1) (1) (1) (1) Net income available to common shareholders $ 2,257 $ 2,009 $ 2,404 Average common shares outstanding (In thousands): Basic average common shares 352,865 369,911 371,983 Effect of dilutive securities: equity-based awards 4,241 3,755 4,493 Diluted average common shares 357,106 373,666 376,476 Anti-dilutive securities (2) 1,066 2,052 1,011 Earnings per common share: Basic $ 6.40 $ 5.43 $ 6.46 Diluted (3) 6.32 5.38 6.39 (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 in Note 18. (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 | 12 Months Ended |
Dec. 31, 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. Investment Servicing, through State Street Institutional Services, State Street Global Markets, State Street Global Exchange and CRD, provides services for U.S. mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations and endowments worldwide. Products include: custody; product accounting; daily pricing and administration; master trust and master custody; depotbank services (a fund oversight role created by non-U.S. regulation); record-keeping; cash management; foreign exchange, brokerage and other trading services; securities finance and enhanced custody products; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk and compliance analytics; and financial data management to support institutional investors. Included within our Investment Servicing line of business is CRD, which we acquired in October 2018. The Charles River Investment Management solution is a technology offering which is designed to automate and simplify the institutional investment process across asset classes, from portfolio management and risk analytics through trading and post-trade settlement, with integrated compliance and managed data throughout. With the acquisition of CRD, we took the first step in building our front-to-back platform, State Street Alpha. Today our State Street Alpha platform combines portfolio management, trading and execution, advanced data aggregation, analytics and compliance tools, and integration with other industry platforms and providers. Investment Management , through State Street Global Advisors, provides a broad range of investment management strategies and products for our clients. Our investment management strategies and products span the risk/reward spectrum for equity, fixed income and cash assets, including core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities and alternative investment strategies. Our AUM is currently primarily weighted to indexed strategies. In addition, we provide a breadth of services and solutions, including environmental, social and governance investing, defined benefit and defined contribution and Global Fiduciary Solutions (formerly Outsourced Chief Investment Officer). State Street Global Advisors is also a provider of ETFs, including the SPDR ® ETF brand. While management fees are primarily determined by the values of AUM and the investment strategies employed, management fees reflect other factors as well, including the benchmarks specified in the respective management agreements related to performance fees. Our investment servicing strategy is to focus on total client relationships and the full integration of our products and services across our client base through cross-selling opportunities. In general, our clients will use a combination of services, depending on their needs, rather than one product or service. For instance, a custody client may purchase securities finance and cash management services from different business units. Products and services that we provide to our clients are parts of an integrated offering to these clients. We price our products and services on the basis of overall client relationships and other factors; as a result, revenue may not necessarily reflect the stand-alone market price of these products and services within the business lines in the same way it would for separate business entities. Our servicing and management fee revenue from the Investment Servicing and Investment Management business lines, including foreign exchange trading services and securities finance activities, represents approximately 70% to 80% of our consolidated total revenue. The remaining 20% to 30% is composed of software and processing fees, including CRD, as well as NII, which is largely generated by our investment of client deposits, short-term borrowings and long-term debt in a variety of assets, and net gains (losses) related to investment securities. These other revenue types are generally fully allocated to, or reside in, Investment Servicing and Investment Management. Revenue and expenses are directly charged or allocated to our lines of business through management information systems. Assets and liabilities are allocated according to policies that support management’s strategic and tactical goals. Capital is allocated based on the relative risks and capital requirements inherent in each business line, along with management judgment. Capital allocations may not be representative of the capital that might be required if these lines of business were separate business entities. The following is a summary of our line of business results "Other" column for the periods indicated. Years Ended December 31, Other (Dollars in millions) 2020 2019 2018 Net repositioning charges $ 133 $ 110 $ 300 Net acquisition and restructuring costs 50 77 24 Accrual release (9) — — Legal and related expenses — 172 50 Business exit costs — — 24 Total $ 174 $ 359 $ 398 The following is a summary of our line of business results for the periods indicated. The amounts in the “Other” columns were not allocated to our business lines. Prior reported results reflect reclassifications, for comparative purposes, related to management changes in methodologies associated with allocations of revenue and expenses to lines of business in 2020. Years Ended December 31, Investment Investment Other Total (Dollars in millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Servicing fees $ 5,167 $ 5,074 $ 5,429 $ — $ — $ — $ — $ — $ (8) $ 5,167 $ 5,074 $ 5,421 Management fees — — — 1,880 1,824 1,899 — — — 1,880 1,824 1,899 Foreign exchange trading services 1,299 974 1,071 64 84 82 — — — 1,363 1,058 1,153 Securities finance 342 462 543 14 9 — — — — 356 471 543 Software and processing fees (1)(2) 706 691 443 27 29 (5) — — — 733 720 438 Total fee revenue (1) 7,514 7,201 7,486 1,985 1,946 1,976 — — (8) 9,499 9,147 9,454 Net interest income 2,211 2,590 2,691 (11) (24) (20) — — — 2,200 2,566 2,671 Total other income 4 43 6 — — — — — — 4 43 6 Total revenue (1) 9,729 9,834 10,183 1,974 1,922 1,956 — — (8) 11,703 11,756 12,131 Provision for credit losses 88 10 15 — — — — — — 88 10 15 Total expenses (1) 7,071 7,140 7,081 1,471 1,535 1,544 174 359 390 8,716 9,034 9,015 Income before income tax expense $ 2,570 $ 2,684 $ 3,087 $ 503 $ 387 $ 412 $ (174) $ (359) $ (398) $ 2,899 $ 2,712 $ 3,101 Pre-tax margin 26 % 27 % 30 % 25 % 20 % 21 % 25 % 23 % 26 % Average assets (in billions) $ 266.4 $ 220.3 $ 220.2 $ 2.9 $ 3.0 $ 3.2 $ 269.3 $ 223.3 $ 223.4 (1) Investment Servicing includes results from our acquisition of CRD on October 1, 2018. (2) Investment Management includes other revenue items that are primarily driven by equity market movements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers We account for revenue from contracts with customers in accordance with Topic 606, which we adopted on January 1, 2018. The amount of revenue that we recognize is measured based on the consideration specified in contracts with our customers, and excludes taxes collected from customers subsequently remitted to governmental authorities. We recognize revenue when a performance obligation is satisfied over time as the services are performed or at a point in time depending on the nature of the services provided as further discussed below. Revenue recognition guidance related to contracts with customers excludes our NII, revenue earned on security lending transactions entered into as principal, realized gains/losses on securities, revenue earned on foreign exchange activity, loans and related fees, and gains/losses on hedging and derivatives, to which we apply other applicable U.S. GAAP guidance. For contracts with multiple performance obligations, or contracts that have been combined, we allocate the contracts' transaction price to each performance obligation using our best estimate of the standalone selling price. Our contractual fees are negotiated on a customer by customer basis and are representative of standalone selling price utilized for allocating revenue when there are multiple performance obligations. Substantially all of our services are provided as a distinct series of daily performance obligations that the customer simultaneously benefits from as they are performed. Payments may be made to third party service providers and the expense is recognized gross when we control those services as we are deemed the principal. Contract durations may vary from short to long- term or may be open ended. Termination notice periods are in line with general market practice and typically do not include termination penalties. Therefore, for substantially all of our revenues, the duration of the contract and the enforceable rights and obligations do not extend beyond the services that are performed daily or at the transaction level. In instances where we have substantive termination penalties, the duration of the contract may extend through the date of substantive termination penalties. Investment Servicing Revenue from contracts with customers related to servicing fees is recognized over time as our customers benefit from the custody, administration, accounting, transfer agency and other related asset services as they are performed. At contract inception, no revenue is estimated as the fees are dependent on assets under custody and/or administration and/or actual transactions which are susceptible to market factors outside of our control. Therefore, revenue is recognized using a time-based output method as the customers benefit from the services over time and as the assets under custody or transactions are known or determinable during each reporting period based on contractual fee schedules. Payments made to third party service providers, such as sub-custodians, are generally recognized gross as we control those services and are deemed to be a principal in such arrangements. Foreign exchange trading services revenue includes revenue generated from providing access and use of electronic trading platforms and other trading, transition management and brokerage services. Electronic FX services are dependent on the volume of actual transactions initiated through our electronic exchange platforms. Revenue is recognized over time using a time-based measure as access to, and use of, the electronic exchange platforms is made available to the customer and the activity is determinable. Revenue related to other trading, transition management and brokerage services is recognized when the customer obtains the benefit of such services which may be over time or at a point in time upon trade execution. Securities finance revenue is related to services for providing agency lending programs to State Street Global Advisors managed investment funds and third- party investment managers and asset owners. This securities finance revenue is recognized over time using a time-based measure as our customers benefit from these lending services over time. Revenue related to the front office solutions provided by CRD is primarily driven by the sale of licenses and software as service arrangements, including professional services such as consulting and implementation services, software support and maintenance. Revenue for a sale of software to be installed on premise is recognized at a point in time when the customer benefits from obtaining access to and use of the software license. Revenue for a SaaS related arrangement is recognized over time as services are provided. Investment Management Revenue from contracts with customers related to investment management, investment research and investment advisory services provided through State Street Global Advisors is recognized over time as our customers benefit from the services as they are performed. Substantially all of our investment management fees are determined by the value of assets under management and the investment strategies employed. At contract inception, no revenue is estimated as the fees are dependent on assets under management which are susceptible to market factors outside of our control. Therefore, substantially all of our Investment Management services revenue is recognized using a time-based output method as the customers benefit from the services over time and as the assets under management are known or determinable during each reporting period based on contractual fee schedules. Payments made to third party service providers, such as payments to others in unitary fee arrangements, are generally recognized on a gross basis when State Street Global Advisors controls those services and is deemed to be a principal in such transactions. 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. The amounts in the "Other" columns were not allocated to our business lines. Year Ended December 31, 2020 Investment Servicing Investment Management Other Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2020 Servicing fees $ 5,167 $ — $ 5,167 $ — $ — $ — $ — $ — $ — $ 5,167 Management fees — — — 1,880 — 1,880 — — — 1,880 Foreign exchange trading services 377 922 1,299 64 — 64 — — — 1,363 Securities finance 212 130 342 — 14 14 — — — 356 Software and processing fees 487 219 706 — 27 27 — — — 733 Total fee revenue 6,243 1,271 7,514 1,944 41 1,985 — — — 9,499 Net interest income — 2,211 2,211 — (11) (11) — — — 2,200 Total other income — 4 4 — — — — — — 4 Total revenue $ 6,243 $ 3,486 $ 9,729 $ 1,944 $ 30 $ 1,974 $ — $ — $ — $ 11,703 Year Ended December 31, 2019 Investment Servicing Investment Management Other Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2019 Servicing fees $ 5,074 $ — $ 5,074 $ — $ — $ — $ — $ — $ — $ 5,074 Management fees — — — 1,824 — 1,824 — — — 1,824 Foreign exchange trading services 346 628 974 84 — 84 — — — 1,058 Securities finance 259 203 462 — 9 9 — — — 471 Software and processing fees 456 235 691 — 29 29 — — — 720 Total fee revenue 6,135 1,066 7,201 1,908 38 1,946 — — — 9,147 Net interest income — 2,590 2,590 — (24) (24) — — — 2,566 Total other income — 43 43 — — — — — — 43 Total revenue $ 6,135 $ 3,699 $ 9,834 $ 1,908 $ 14 $ 1,922 $ — $ — $ — $ 11,756 Year Ended December 31, 2018 Investment Servicing Investment Management Other Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2018 Servicing fees $ 5,429 $ — $ 5,429 $ — $ — $ — $ (8) $ — $ (8) $ 5,421 Management fees — — — 1,899 — 1,899 — — — 1,899 Foreign exchange trading services 361 710 1,071 82 — 82 — — — 1,153 Securities finance 308 235 543 — — — — — — 543 Software and processing fees 209 234 443 — (5) (5) — — — 438 Total fee revenue 6,307 1,179 7,486 1,981 (5) 1,976 (8) — (8) 9,454 Net interest income — 2,691 2,691 — (20) (20) — — — 2,671 Total other income — 6 6 — — — — — — 6 Total revenue $ 6,307 $ 3,876 $ 10,183 $ 1,981 $ (25) $ 1,956 $ (8) $ — $ (8) $ 12,131 Contract balances and contract costs A s of December 31, 2020 and December 31, 2019, net receivables of $2.68 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. |
Non-U.S. Activities
Non-U.S. Activities | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, 2020 2019 2018 (In millions) Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Total revenue $ 5,252 $ 6,451 $ 11,703 $ 5,230 $ 6,526 $ 11,756 $ 5,190 $ 6,941 $ 12,131 Income before income tax expense 1,146 1,753 2,899 1,248 1,464 2,712 1,294 1,807 3,101 (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 $111.30 billion and $83.28 billion as of December 31, 2020 and 2019, respectively. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Statements | Parent Company Financial Statements The following tables present the financial statements of the Parent Company without consolidation of its banking and non-banking subsidiaries, as of and for the years indicated: Statement of Income - Parent Company Years Ended December 31, (In millions) 2020 2019 2018 Cash dividends from consolidated banking subsidiary $ 2,721 $ 3,300 $ 785 Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities 118 285 41 Other, net 92 149 58 Total revenue 2,931 3,734 884 Interest expense 324 415 381 Other expenses 172 108 162 Total expenses 496 523 543 Income tax (benefit) (109) (91) (127) Income before equity in undistributed income of consolidated subsidiaries and unconsolidated entities 2,544 3,302 468 Equity in undistributed income of consolidated subsidiaries and unconsolidated entities: Consolidated banking subsidiary (277) (1,070) 1,944 Consolidated non-banking subsidiaries and unconsolidated entities 153 10 181 Net income $ 2,420 $ 2,242 $ 2,593 Statement of Condition - Parent Company As of December 31, (In millions) 2020 2019 Assets: Interest-bearing deposits with consolidated banking subsidiary $ 492 $ 428 Trading account assets 412 393 Investment securities available-for-sale 100 250 Investments in subsidiaries: Consolidated banking subsidiary 26,204 25,451 Consolidated non-banking subsidiaries 8,807 7,240 Unconsolidated entities 124 117 Notes and other receivables from: Consolidated banking subsidiary 81 — Consolidated non-banking subsidiaries and unconsolidated entities 3,885 3,361 Other assets 277 270 Total assets $ 40,382 $ 37,510 Liabilities: Accrued expenses and other liabilities $ 557 $ 696 Long-term debt 13,625 12,383 Total liabilities 14,182 13,079 Shareholders’ equity 26,200 24,431 Total liabilities and shareholders’ equity $ 40,382 $ 37,510 Statement of Cash Flows - Parent Company Years Ended December 31, (In millions) 2020 2019 2018 Net cash provided by operating activities $ 3,513 $ 2,684 $ 2,250 Investing Activities: Net decrease (increase) in interest-bearing deposits with consolidated banking subsidiary (64) 58 46 Proceeds from sales and maturities of available-for-sale securities 1,000 900 — Purchases of available-for-sale securities (849) (921) (224) Investments in consolidated banking and non-banking subsidiaries (7,406) (6,165) (4,883) Sale or repayment of investment in consolidated banking and non-banking subsidiaries 4,999 5,345 2,472 Net cash (used in) provided by investing activities (2,320) (783) (2,589) Financing Activities: Proceeds from issuance of long-term debt, net of issuance costs 2,489 1,495 996 Payments for long-term debt (1,700) (50) (1,000) Proceeds from issuance of preferred stock, net of issuance costs — — 495 Proceeds from issuance of common stock, net of issuance costs — — 1,150 Payments for redemption of preferred stock (500) (750) — Repurchases of common stock (515) (1,585) (350) Repurchases of common stock for employee tax withholding (78) (81) (124) Payments for cash dividends (889) (930) (828) Net cash provided (used in) financing activities (1,193) (1,901) 339 Net change — — — Cash and due from banks at beginning of year — — — Cash and due from banks at end of year $ — $ — $ — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn January 14, 2021, we announced that we will redeem on March 15, 2021 an aggregate of $500 million, or 5,000 of the 7,500 outstanding shares of our non-cumulative perpetual preferred stock, Series F, for cash at a redemption price of $100,000 per share (equivalent to $1,000 per depositary share) plus all declared and unpaid dividends. A cash dividend of $953.38 per share of Series F Preferred Stock (or approximately $9.5338 per depositary share) has been declared for the period from December 15, 2020 up to but not including March 15, 2021 (the “March Dividend”). The March Dividend will be paid separately to the holders of record of the Series F Preferred Stock as of March 1, 2021 in the customary manner. Accordingly, there will not be any declared and unpaid dividends included in the redemption price |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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, including our principal banking subsidiary, State Street Bank. We have two lines of business: Investment Servicing provides a suite of related products and services including: custody; product accounting; daily pricing and administration; master trust and master custody; depotbank services (a fund oversight role created by non-U.S. regulation); record-keeping; cash management; foreign exchange, brokerage and other trading services; securities finance and enhanced custody products; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk and compliance analytics; and financial data management to support institutional investors. Included within our Investment Servicing line of business is CRD, which we acquired in October 2018. The Charles River Investment Management solution is a technology offering which is designed to automate and simplify the institutional investment process across asset classes, from portfolio management and risk analytics through trading and post-trade settlement, with integrated compliance and managed data throughout. With the acquisition of CRD, we took the first step in building our front-to-back platform, State Street Alpha. Today our State Street Alpha platform combines portfolio management, trading and execution, advanced data aggregation, analytics and compliance tools, and integration with other industry platforms and providers. Investment Management , through State Street Global Advisors, provides a broad range of investment management strategies and products for our clients. Our investment management strategies and products span the risk/reward spectrum for equity, fixed income and cash assets, including core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities and alternative investment strategies. Our AUM is currently primarily weighted to indexed strategies. In addition, we provide a breadth of services and solutions, including environmental, social and governance investing, defined benefit and defined contribution and Global Fiduciary Solutions (formerly Outsourced Chief Investment Officer). State Street Global Advisors is also a provider of ETFs, including the SPDR ® ETF brand. While management fees are primarily determined by the values of AUM and the investment strategies employed, management fees reflect other factors as well, including the benchmarks specified in the respective management agreements related to performance fees. |
Consolidation | Consolidation Our consolidated financial statements include the accounts of the Parent Company and its majority- and wholly-owned and otherwise controlled subsidiaries, including State Street Bank. All material inter-company transactions and balances have been eliminated. Certain previously reported amounts have been reclassified to conform to current-year presentation. We consolidate subsidiaries in which we exercise control. Investments in unconsolidated subsidiaries, recorded in other assets, generally are accounted for under the equity method of accounting if we have the ability to exercise significant influence over the operations of the investee. For investments accounted for under the equity method, our share of income or loss is recorded in software and processing fees in our consolidated statement of income. Investments not meeting the criteria for equity-method treatment are measured at fair value through earnings, except for investments where a fair market value is not readily available, which are accounted for under the cost method of accounting. |
Use of Estimates | 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. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of our operations with functional currencies other than the U.S. dollar are translated at month-end exchange rates, and revenue and expenses are translated at rates that approximate average monthly exchange rates. Gains or losses from the translation of the net assets of subsidiaries with functional currencies other than the U.S. dollar, net of related taxes, are recorded in AOCI, a component of shareholders’ equity. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statement of cash flows, cash and cash equivalents are defined as cash and due from banks. |
Interest-Bearing Deposits with Banks | Interest-Bearing Deposits with Banks Interest-bearing deposits with banks generally consist of highly liquid, short-term investments maintained at the Federal Reserve Bank and other non-U.S. central banks with original maturities at the time of purchase of one month or less. |
Securities Purchased Under Resale Agreements and Securities Sold Under Repurchase Agreements | Securities Purchased Under Resale Agreements and Securities Sold Under Repurchase Agreements Securities purchased under resale agreements and sold under repurchase agreements are treated as collateralized financing transactions, and are recorded in our consolidated statement of condition at the amounts at which the securities will be subsequently resold or repurchased, plus accrued interest. Our policy is to take possession or control of securities underlying resale agreements either directly or through agent banks, allowing borrowers the right of collateral substitution and/or short-notice termination. We revalue these securities daily to determine if additional collateral is necessary from the borrower to protect us against credit exposure. We can use these securities as collateral for repurchase agreements. For securities sold under repurchase agreements collateralized by our investment securities portfolio, the dollar value of the securities remains in investment securities in our consolidated statement of condition. Where a master netting agreement exists or both parties are members of a common clearing organization, resale and repurchase agreements with the same counterparty or clearing house and maturity date are recorded on a net basis. |
Fee and Net Interest Income | Fee and Net Interest Income The majority of fees from investment servicing, investment management, securities finance, trading services and certain types of software and processing fees are recorded in our consolidated statement of income based on the consideration specified in contracts with our customers, and excludes taxes collected from customers subsequently remitted to governmental authorities. We recognize revenue as the services are performed or at a point in time depending on the nature of the services provided. Payments made to third party service providers are generally recognized on a gross basis when we control those services and are deemed to be the principal. Additional information about revenue from contracts with customers is provided in Note 25. Interest income on interest-earning assets and interest expense on interest-bearing liabilities are |
Recent Accounting Developments | Recent Accounting Developments Relevant standards that were adopted in 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 on or after January 1, 2020 are presented under the CECL methodology in ASC 326, while prior period amounts are reported in accordance with previously applicable GAAP. 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 were 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 were 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 were 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. We expect to elect certain of the optional expedients and 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. 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. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to valuation methods using significant unobservable inputs (level 3). If the inputs used to measure a financial asset or liability cross different levels of the hierarchy, categorization is based on the lowest-level input that is significant to the fair-value measurement. Management's assessment of the significance of a particular input to the overall fair-value measurement of a financial asset or liability requires judgment, and considers factors specific to that asset or liability. The three levels of the valuation hierarchy are described below. Level 1. Financial assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market. Our level 1 financial assets and liabilities primarily include positions in U.S. government securities and highly liquid U.S. and non-U.S. government fixed-income securities. Our level 1 financial assets also include actively traded exchange- traded equity securities. Level 2. Financial assets and liabilities with values based on quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include the following: ▪ Quoted prices for similar assets or liabilities in active markets; ▪ Quoted prices for identical or similar assets or liabilities in non-active markets; ▪ Pricing models whose inputs are observable for substantially the full term of the asset or liability; and ▪ Pricing models whose inputs are derived principally from, or corroborated by, observable market information through correlation or other means for substantially the full term of the asset or liability. Our level 2 financial assets and liabilities primarily include non-U.S. debt securities carried in trading account assets and various types of fixed-income AFS investment securities, as well as various types of foreign exchange and interest rate derivative instruments. Fair value for our AFS investment securities categorized in level 2 is measured primarily using information obtained from independent third parties. This third-party information is subject to review by management as part of a validation process, which includes obtaining an understanding of the underlying assumptions and the level of market participant information used to support those assumptions. In addition, management compares significant assumptions used by third parties to available market information. Such information may include known trades or, to the extent that trading activity is limited, comparisons to market research information pertaining to credit expectations, execution prices and the timing of cash flows and, where information is available, back- testing. Derivative instruments categorized in level 2 predominantly represent foreign exchange contracts used in our trading activities, for which fair value is measured using discounted cash-flow techniques, with inputs consisting of observable spot and forward points, as well as observable interest rate curves. With respect to derivative instruments, we evaluate the impact on valuation of the credit risk of our counterparties. We consider factors such as the likelihood of default by our counterparties, our current and potential future net exposures and remaining maturities in determining the fair value. Valuation adjustments associated with derivative instruments were not material to those instruments for the years ended December 31, 2020 and 2019. Level 3. Financial assets and liabilities with values based on prices or valuation techniques that require inputs that are both unobservable in the market and significant to the overall measurement of fair value. These inputs reflect management's judgment about the assumptions that a market participant would use in pricing the financial asset or liability, and are based on the best available information, some of which may be internally developed. The following provides a more detailed discussion of our financial assets and liabilities that we may categorize in level 3 and the related valuation methodology. • The fair value of our investment securities categorized in level 3 is measured using information obtained from third-party sources, typically non-binding broker/dealer quotes, or through the use of internally-developed pricing models. Management has evaluated its methodologies used to measure fair value and has considered the level of observable market information to be insufficient to categorize the securities in level 2. • The fair value of certain foreign exchange contracts, primarily options, is measured using an option-pricing model. Because of a limited number of observable transactions, certain model inputs are not observable, such as implied volatility surface, but are derived from observable market information. Our level 3 financial assets and liabilities are similar in structure and profile to our level 1 and level 2 financial instruments, but they trade in less liquid markets, and the measurement of their fair value is inherently less observable. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Other Significant Accounting Policies | The following table identifies our other significant accounting policies and the note and page where a detailed description of each policy can be found: Fair Value Note 2 Page 135 Investment Securities Note 3 Page 143 Loans Note 4 Page 149 Goodwill and Other Intangible Assets Note 5 Page 154 Derivative Financial Instruments Note 10 Page 158 Offsetting Arrangements Note 11 Page 163 Contingencies Note 13 Page 167 Variable Interest Entities Note 14 Page 169 Equity-Based Compensation Note 18 Page 176 Income Taxes Note 22 Page 180 Earnings Per Common Share Note 23 Page 181 Revenue from Contracts with Customers Note 25 Page 184 |
Recent Accounting Developments | Recent Accounting Developments |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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 $ 40 $ — $ — $ 40 Non-U.S. government securities — 239 — 239 Other 17 519 — 536 Total trading account assets 57 758 — 815 Available-for-sale investment securities: U.S. Treasury and federal agencies: Direct obligations 6,575 — — 6,575 Mortgage-backed securities — 14,305 — 14,305 Total U.S. Treasury and federal agencies 6,575 14,305 — 20,880 Asset-backed securities: Student loans — 314 — 314 Credit cards — 90 — 90 Collateralized loan obligations — 2,952 14 2,966 Total asset-backed securities — 3,356 14 3,370 Non-U.S. debt securities: Mortgage-backed securities — 1,996 — 1,996 Asset-backed securities — 2,291 — 2,291 Government securities — 12,539 — 12,539 Other (2) — 12,903 — 12,903 Total non-U.S. debt securities — 29,729 — 29,729 State and political subdivisions — 1,548 — 1,548 Collateralized mortgage obligations — 78 — 78 Other U.S. debt securities — 3,443 — 3,443 Total available-for-sale investment securities 6,575 52,459 14 59,048 Other assets: Derivative instruments: Foreign exchange contracts — 25,941 2 $ (20,140) 5,803 Interest rate contracts 1 — — — 1 Total derivative instruments 1 25,941 2 (20,140) 5,804 Other — 525 — — 525 Total assets carried at fair value $ 6,633 $ 79,683 $ 16 $ (20,140) $ 66,192 Liabilities: Accrued expenses and other liabilities: Trading account liabilities: Other $ 4 $ — $ — $ — $ 4 Derivative instruments: Foreign exchange contracts 1 25,925 1 (15,558) 10,369 Interest rate contracts — 42 — — 42 Other derivative contracts — 157 — — 157 Total derivative instruments 1 26,124 1 (15,558) 10,568 Total liabilities carried at fair value $ 5 $ 26,124 $ 1 $ (15,558) $ 10,572 (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 $5.87 billion and $1.29 billion, respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2020, the fair value of other non-U.S. debt securities included $9.55 billion of supranational and non-U.S. agency bonds, $1.88 billion of corporate bonds and $0.47 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 years ended December 31, 2020 and 2019, respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the years ended December 31, 2020 and 2019, transfers into level 3 were primarily related to collateralized loan obligations, for which fair value was measured using information obtained from third party sources, including non-binding broker/dealer quotes. During the years ended December 31, 2020 and 2019, transfers out of level 3 were mainly related to collateralized loan obligations, certain MBS and non-U.S. debt securities, for which fair value was measured using prices based on observable market information. Fair Value Measurements Using Significant Unobservable Inputs Year Ended December 31, 2020 Fair Value as of Total Realized and Purchases Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of December 31, 2020 (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: Asset-backed securities: Collateralized loan obligations $ 1,820 $ — $ (10) $ 864 $ (95) $ (77) $ 50 $ (2,538) $ 14 Total asset-backed securities 1,820 — (10) 864 (95) (77) 50 (2,538) 14 Non-U.S. debt securities: Asset-backed securities 887 — 35 1 — (5) — (918) — Other 45 — 2 — — — — (47) — Total non-U.S. debt securities 932 — 37 1 — (5) — (965) — Total Available-for-sale investment securities 2,752 — 27 865 (95) (82) 50 (3,503) 14 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) $ 27 $ 870 $ (95) $ (83) $ 50 $ (3,503) $ 16 $ (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 foreign exchange trading services. Fair Value Measurements Using Significant Unobservable Inputs Year Ended December 31, 2019 Fair Value Total Realized and Purchases Sales Settlements Transfers Transfers Fair Value as of December 31, 2019 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments (In millions) Recorded (1) Recorded (1) Assets: Available-for-sale Investment securities: Mortgage-backed securities $ — $ — $ — $ 123 $ — $ — $ — $ (123) $ — Asset-backed securities: Collateralized loan obligations 593 1 — 1,065 — (342) 503 — 1,820 Other — — — — — — — — — Total asset-backed securities 593 1 — 1,065 — (342) 503 — 1,820 Non-U.S. debt securities: Asset-backed securities 631 — (9) 340 — (36) — (39) 887 Other 58 — (1) — — — — (12) 45 Total non-U.S. debt securities 689 — (10) 340 — (36) — (51) 932 State and political subdivisions — — — — — — — — — Collateralized mortgage obligations 2 — — — — (2) — — — Total Available-for-sale investment securities 1,284 1 (10) 1,528 — (380) 503 (174) 2,752 Other assets: Derivative instruments: Foreign exchange contracts 4 (15) — 16 — (1) — — 4 $ (11) Total derivative instruments 4 (15) — 16 — (1) — — 4 (11) Total assets carried at fair value $ 1,288 $ (14) $ (10) $ 1,544 $ — $ (381) $ 503 $ (174) $ 2,756 $ (11) (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 internally-developed 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 December 31, 2020 As of December 31, 2019 Valuation Technique Significant Unobservable Input (1) As of December 31, 2020 As of December 31, 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 5.7% - 10.3% 7.9 % 8.2 % Total $ 2 $ 4 Liabilities: Derivative instruments, foreign exchange contracts $ 1 $ 3 Option model Volatility 6.6% - 10.3% 7.7 % 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) December 31, 2020 Financial Assets: Cash and due from banks $ 3,467 $ 3,467 $ 3,467 $ — $ — Interest-bearing deposits with banks 116,960 116,960 — 116,960 — Securities purchased under resale agreements 3,106 3,106 — 3,106 — HTM securities purchased under the MMLF 3,299 3,304 — 3,304 — Investment securities held-to-maturity 48,929 50,003 6,115 43,888 — Net loans 27,803 27,884 — 25,668 2,216 Other (1) 4,753 4,753 — 4,753 — Financial Liabilities: Deposits: Non-interest-bearing $ 49,439 $ 49,439 $ — $ 49,439 $ — Interest-bearing - U.S. 102,331 102,331 — 102,331 — Interest-bearing - non-U.S. 88,028 88,028 — 88,028 — Securities sold under repurchase agreements 3,413 3,413 — 3,413 — Short-term borrowings under the MMLF 3,302 3,302 — 3,302 — Other short-term borrowings 685 685 — 685 — Long-term debt 13,805 14,162 — 14,049 113 Other (1) 4,753 4,753 — 4,753 — (1) 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 (excluding leases) (1) 26,325 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 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) | 12 Months Ended |
Dec. 31, 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: December 31, 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 $ 6,453 $ 123 $ 1 $ 6,575 $ 3,506 $ 9 $ 28 $ 3,487 Mortgage-backed securities 13,891 421 7 14,305 17,599 264 25 17,838 Total U.S. Treasury and federal agencies 20,344 544 8 20,880 21,105 273 53 21,325 Asset-backed securities: Student loans (1) 313 2 1 314 532 1 2 531 Credit cards 90 — — 90 90 — 1 89 Collateralized loan obligations 2,969 3 6 2,966 1,822 1 3 1,820 Total asset-backed securities 3,372 5 7 3,370 2,444 2 6 2,440 Non-U.S. debt securities: Mortgage-backed securities 1,994 4 2 1,996 1,978 3 1 1,980 Asset-backed securities 2,294 1 4 2,291 2,179 2 2 2,179 Government securities 12,337 202 — 12,539 12,243 131 1 12,373 Other (2) 12,729 177 3 12,903 8,595 73 10 8,658 Total non-U.S. debt securities 29,354 384 9 29,729 24,995 209 14 25,190 State and political subdivisions (3) 1,470 80 2 1,548 1,725 59 1 1,783 Collateralized mortgage obligations 76 2 — 78 104 — — 104 Other U.S. debt securities 3,371 72 — 3,443 2,941 32 — 2,973 Total (4) $ 57,987 $ 1,087 $ 26 $ 59,048 $ 53,314 $ 575 $ 74 $ 53,815 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 6,057 $ 83 $ — $ 6,140 $ 10,311 $ 24 $ 3 $ 10,332 Mortgage-backed securities 36,883 955 67 37,771 26,297 316 44 26,569 Total U.S. Treasury and federal agencies 42,940 1,038 67 43,911 36,608 340 47 36,901 Asset-backed securities: Student loans (1) 4,774 33 25 4,782 3,783 10 41 3,752 Total asset-backed securities 4,774 33 25 4,782 3,783 10 41 3,752 Non-U.S. debt securities: Mortgage-backed securities 303 68 4 367 366 82 6 442 Government securities 342 — — 342 328 — — 328 Total non-U.S. debt securities 645 68 4 709 694 82 6 770 Collateralized mortgage obligations 572 30 1 601 697 38 1 734 Total (4) 48,931 1,169 97 50,003 41,782 470 95 42,157 HTM securities purchased under the MMLF program 3,300 4 — 3,304 — — — — Total held-to-maturity securities (4)(5) $ 52,231 $ 1,173 $ 97 $ 53,307 $ 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 December 31, 2020 and December 31, 2019, the fair value of other non-U.S. debt securities included $9.55 billion and $5.50 billion, respectively, primarily of supranational and non-U.S. agency bonds, $1.88 billion and $1.78 billion, respectively, of corporate bonds and $0.47 billion and $0.68 billion, respectively, of covered bonds. (3) As of December 31, 2020 and December 31, 2019, the fair value of state and political subdivisions includes securities in trusts of $0.70 billion and $0.94 billion, respectively. Additional information about these trusts is provided in Note 14. (4) An immaterial amount of accrued interest related to HTM and AFS investment securities was excluded from the amortized cost basis for the year ended December 31, 2020. (5) As of December 31, 2020, we recognized an allowance for credit losses of $3 million on all HTM securities. |
Schedule of Gross Pre-tax Unrealized Losses on Investment Securities | The following table presents 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 December 31, 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 $ 1,636 $ 1 $ — $ — $ 1,636 $ 1 Mortgage-backed securities 1,394 7 63 — 1,457 7 Total U.S. Treasury and federal agencies 3,030 8 63 — 3,093 8 Asset-backed securities: Student loans 31 — 197 1 228 1 Collateralized loan obligations 1,498 4 369 2 1,867 6 Total asset-backed securities 1,529 4 566 3 2,095 7 Non-U.S. debt securities: Mortgage-backed securities 600 1 120 1 720 2 Asset-backed securities 1,015 3 446 1 1,461 4 Government securities 489 — — — 489 — Other 715 3 80 — 795 3 Total non-U.S. debt securities 2,819 7 646 2 3,465 9 State and political subdivisions 95 — 76 2 171 2 Other U.S. debt securities 17 — — — 17 — Total $ 7,490 $ 19 $ 1,351 $ 7 $ 8,841 $ 26 The following table presents the aggregate fair values of AFS and HTM 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 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 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 604 $ — $ 2,262 $ 3 $ 2,866 $ 3 Mortgage-backed securities 6,056 31 1,606 13 7,662 44 Total U.S. Treasury and federal agencies 6,660 31 3,868 16 10,528 47 Asset-backed securities: Student loans 2,003 22 778 19 2,781 41 Credit cards — — — — — — Other — — — — — — Total asset-backed securities 2,003 22 778 19 2,781 41 Non-U.S. debt securities: Mortgage-backed securities — — 138 6 138 6 Asset-backed securities — — — — — — Government securities — — — — — — Other — — — Total non-U.S. debt securities — — 138 6 138 6 Collateralized mortgage obligations 13 — 110 1 123 1 Total $ 8,676 $ 53 $ 4,894 $ 42 $ 13,570 $ 95 |
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 December 31, 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 December 31, 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 $ 1,648 $ 1,661 $ 2,758 $ 2,771 $ 2,047 $ 2,143 $ — $ — $ 6,453 $ 6,575 Mortgage-backed securities 121 127 603 619 2,800 2,828 10,367 10,731 13,891 14,305 Total U.S. Treasury and federal agencies 1,769 1,788 3,361 3,390 4,847 4,971 10,367 10,731 20,344 20,880 Asset-backed securities: Student loans 113 115 90 90 — — 110 109 313 314 Credit cards — — — — 90 90 — — 90 90 Collateralized loan obligations 76 76 1,080 1,077 838 838 975 975 2,969 2,966 Total asset-backed securities 189 191 1,170 1,167 928 928 1,085 1,084 3,372 3,370 Non-U.S. debt securities: Mortgage-backed securities 260 260 527 527 116 116 1,091 1,093 1,994 1,996 Asset-backed securities 337 337 1,250 1,247 272 272 435 435 2,294 2,291 Government securities 3,149 3,151 7,976 8,151 919 939 293 298 12,337 12,539 Other 1,323 1,329 9,520 9,652 1,718 1,752 168 170 12,729 12,903 Total non-U.S. debt securities 5,069 5,077 19,273 19,577 3,025 3,079 1,987 1,996 29,354 29,729 State and political subdivisions 136 136 605 626 514 559 215 227 1,470 1,548 Collateralized mortgage obligations — — — — — — 76 78 76 78 Other U.S. debt securities 449 452 2,833 2,896 89 95 — — 3,371 3,443 Total $ 7,612 $ 7,644 $ 27,242 $ 27,656 $ 9,403 $ 9,632 $ 13,730 $ 14,116 $ 57,987 $ 59,048 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 3,480 $ 3,512 $ 2,555 $ 2,607 $ — $ — $ 22 $ 21 $ 6,057 $ 6,140 Mortgage-backed securities 204 211 423 430 5,036 5,174 31,220 31,956 36,883 37,771 Total U.S. Treasury and federal agencies 3,684 3,723 2,978 3,037 5,036 5,174 31,242 31,977 42,940 43,911 Asset-backed securities: Student loans 350 343 155 152 667 665 3,602 3,622 4,774 4,782 Total asset-backed securities 350 343 155 152 667 665 3,602 3,622 4,774 4,782 Non-U.S. debt securities: Mortgage-backed securities 87 84 23 23 — — 193 260 303 367 Government securities 342 342 — — — — — — 342 342 Total non-U.S. debt securities 429 426 23 23 — — 193 260 645 709 Collateralized mortgage obligations 139 150 265 266 21 21 147 164 572 601 Total 4,602 4,642 3,421 3,478 5,724 5,860 35,184 36,023 48,931 50,003 Held-to-maturity under money market mutual fund liquidity facility 3,300 3,304 — — — — — — 3,300 3,304 Total held-to-maturity securities $ 7,902 $ 7,946 $ 3,421 $ 3,478 $ 5,724 $ 5,860 $ 35,184 $ 36,023 $ 52,231 $ 53,307 |
Gains and Losses Related to Investment Securities | The following tables present gross realized gains and losses from sales of AFS investment securities, and the components of net impairment losses included in net gains and losses related to investment securities for the periods indicated, recognized under previous accounting guidance prior to the adoption of ASC 326: Years Ended December 31, (In millions) 2019 2018 Gross realized gains from sales of AFS investment securities $ 31 $ 205 Gross realized losses from sales of AFS investment securities (32) (196) Net impairment losses: Gross losses from OTTI — (3) Net impairment losses — (3) Gains (losses) related to investment securities, net (1) 6 Net impairment losses, recognized in our consolidated statement of income, were composed of the following: Impairment associated with adverse changes in timing of expected future cash flows — (3) Net impairment losses $ — $ (3) |
Schedule of Credit-Related Loss Activity Recognized in Earnings | The following table presents a roll-forward with respect to net impairment losses that had been recognized in income for the periods indicated: Years Ended December 31, (In millions) 2019 2018 Balance, beginning of period $ 78 $ 77 Additions (1) : Other-than-temporary-impairment recognized — 3 Deductions (2) : Realized losses on securities sold or matured (8) (2) Balance, end of period $ 70 $ 78 1) Additions represent securities with a first time credit impairment realized or when a subsequent credit impairment has occurred. (2) Deductions represent impairments on securities that have been sold or matured, are required to be sold, or for which management intends to sell. |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Net Loans | The following table presents our recorded investment in loans, by segment, as of the dates indicated: (In millions) December 31, 2020 December 31, 2019 Domestic (1) : Commercial and financial: Fund Finance (2) 11,531 10,270 Leveraged loans 2,923 3,342 Overdrafts 1,894 1,739 Other (3) 2,688 3,411 Commercial real estate 2,096 1,766 Total domestic 21,132 20,528 Foreign (1) : Commercial and financial: Fund Finance (2) 4,432 3,145 Leveraged loans 1,242 1,119 Overdrafts 1,088 1,517 Other (3) 31 — Total foreign 6,793 5,781 Total loans (2) 27,925 26,309 Allowance for credit losses (122) (74) Loans, net of allowance $ 27,803 $ 26,235 (1) Domestic and foreign categorization is based on the borrower’s country of domicile. (2) Fund finance loans include primarily $6,391 million loans to real money funds, $8,380 million private equity capital call finance loans and $821 million loans to business development companies as of December 31, 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 $1,911 million securities finance loans, $754 million loans to municipalities and $54 million other loans as of December 31, 2020 and $2,537 million securities finance loans, $848 million loans to municipalities and $26 million other loans as of December 31, 2019. |
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator | The following tables present our recorded loans to counterparties by risk rating, as noted above, as of the dates indicated: December 31, 2020 Commercial and Financial Commercial Real Estate Total Loans (In millions) Investment grade $ 20,859 $ 1,724 $ 22,583 Speculative 4,852 372 5,224 Special mention 67 — 67 Substandard 34 — 34 Doubtful 17 — 17 Total (1) $ 25,829 $ 2,096 $ 27,925 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 $2,982 million and $3,256 million of overdrafts as of December 31, 2020 and December 31, 2019, respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 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 Prior Revolving Loans Total (1) Domestic loans: Commercial and financial: Risk Rating: Investment grade $ 1,894 $ 388 $ 4 $ 167 $ 200 $ — $ 12,836 $ 15,489 Speculative 432 942 822 610 43 — 597 3,446 Special mention — 28 — 39 — — — 67 Substandard — 5 — — 29 — — 34 Doubtful — — — — — — — — Total commercial and financing $ 2,326 $ 1,363 $ 826 $ 816 $ 272 $ — $ 13,433 $ 19,036 Commercial real estate: Risk Rating: Investment grade $ 178 $ 383 $ 688 $ 277 $ 197 $ — $ — $ 1,723 Speculative 120 166 58 — — 29 — 373 Total commercial real estate $ 298 $ 549 $ 746 $ 277 $ 197 $ 29 $ — $ 2,096 Non-U.S. loans: Commercial and financial: Risk Rating: Investment grade $ 1,028 $ — $ — $ — $ — $ — $ 4,343 $ 5,371 Speculative 283 401 346 162 26 66 121 1,405 Doubtful — — — 17 — — — 17 Total commercial and financing $ 1,311 $ 401 $ 346 $ 179 $ 26 $ 66 $ 4,464 $ 6,793 Total loans $ 3,935 $ 2,313 $ 1,918 $ 1,272 $ 495 $ 95 $ 17,897 $ 27,925 (1) Any reserve associated with accrued interest is not material. As of December 31, 2020, accrued interest receivable of $72 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 year ended December 31, 2020: Year End December 31, 2020 Commercial and Financial (In millions) Leveraged Loans Other Loans (1) Commercial Real Estate Held-to-Maturity Securities Off-Balance Sheet Commitments All Other Total Allowance for credit losses: Beginning balance $ 61 $ 10 $ 2 $ — $ 19 $ 1 $ 93 Charge-offs (2) (41) — — — — — (41) Provision 70 7 6 3 2 — 88 FX translation 7 — — — 1 — 8 Ending balance $ 97 $ 17 $ 8 $ 3 $ 22 $ 1 $ 148 (1) Includes $13 million allowance for credit losses on Fund Finance loans and $4 million on other loans. (2) Related to the sale of leveraged loans in 2020. The following table presents activity in the allowance for loan losses for the periods indicated under the incurred loss methodology: (In millions) Year Ended December 31, 2019 Year Ended December 31, 2018 Allowance for loan losses: Beginning balance $ 67 $ 54 Provision for credit losses (1) 10 15 Charge-offs (1) (3) (2) Ending balance $ 74 $ 67 (1) The provisions and charge offs for credit losses were primarily attributable to exposure to purchased leveraged loans to non-investment grade loans. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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 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 124 3 127 Ending balance December 31, 2020 $ 7,413 $ 270 $ 7,683 (1) Investment Servicing includes our acquisition of CRD. (2) We completed the purchase price accounting for the CRD acquisition 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 in the year ended December 31, 2019, resulting in an increase in the goodwill of $113 million and a decrease of $93 million in other 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 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 (206) (28) (234) Foreign currency translation 31 — 31 Ending balance December 31, 2020 $ 1,733 $ 94 $ 1,827 (1) Investment Servicing includes our acquisition of CRD. (2) We completed the purchase price accounting for the CRD acquisition 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 in the year ended December 31, 2019, resulting in a decrease in the fair value of other intangible assets of $93 million, 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: December 31, 2020 Gross Accumulated Net (In millions) Other intangible assets: Client relationships $ 2,704 $ (1,450) $ 1,254 Technology 393 (113) 280 Core deposits 690 (425) 265 Other 107 (79) 28 Total $ 3,894 $ (2,067) $ 1,827 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (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 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Expected future amortization expense for other intangible assets recorded as of December 31, 2020 is as follows: (In millions) Future Amortization Years Ended December 31, 2021 $ 235 2022 232 2023 231 2024 224 2025 199 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Components of Other Assets | The following table presents the components of other assets as of the dates indicated: (In millions) December 31, 2020 December 31, 2019 Securities borrowed (1) $ 18,330 $ 18,524 Derivative instruments, net 5,804 4,753 Bank-owned life insurance 3,479 3,395 Investments in joint ventures and other unconsolidated entities 3,095 2,899 Collateral, net 2,713 874 Right-of-use assets 720 858 Prepaid expenses 383 395 Accounts receivable 379 432 Income taxes receivable 367 309 Deferred tax assets, net of valuation allowance (2) 233 216 Receivable for securities settlement 117 336 Deposits with clearing organizations 58 58 Other 832 962 Total $ 36,510 $ 34,011 (1) Refer to Note 11, 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. |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | The following table presents information with respect to the amounts outstanding and weighted-average interest rates of the primary components of our short-term borrowings as of and for the years ended December 31: (Dollars in millions) Securities Sold Under Repurchase Agreements Tax-Exempt Investment Program Other 2020 2019 2018 2020 2019 2018 2020 2019 2018 Balance as of December 31 $ 3,413 $ 1,102 $ 1,082 $ 616 $ 823 $ 931 $ 3,302 $ — $ 2,000 Maximum outstanding as of any month-end 5,373 4,125 3,441 823 931 1,078 25,665 — 2,000 Average outstanding during the year 2,615 1,616 2,048 771 898 1,023 8,251 3 nm Weighted-average interest rate as of year-end .00 % .00 % 1.38 % .23 % 1.75 % 1.74 % 1.35 % .00 % 2.68 % Weighted-average interest rate during the year .14 1.90 .62 .78 1.51 1.46 1.23 .01 nm nm Not meaningful The following table presents information about these U.S. government securities and the carrying value of the related repurchase agreements, including accrued interest, as of December 31, 2020. U.S. Government Securities Sold Repurchase Agreements (1) (In millions) Amortized Cost Fair Value Amortized Cost Overnight maturity $ 2,992 $ 3,981 $ 3,413 (1) Collateralized by investment securities. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt | (Dollars in millions) As of December 31, Issuance Date Maturity Date Coupon Rate Seniority Interest Due Dates 2020 2019 Parent Company And Non-Banking Subsidiary Issuances August 18, 2015 August 18, 2025 3.55 % Senior notes 2/18; 8/18 (1) $ 1,413 $ 1,331 August 18, 2015 August 18, 2020 2.55 % Senior notes 2/18; 8/18 — 1,191 November 19, 2013 November 20, 2023 3.7 % Senior notes 5/20; 11/20 (1) 1,070 1,037 December 15, 2014 December 16, 2024 3.3 % Senior notes 6/16; 12/16 (1) 1,075 1,022 May 15, 2013 May 15, 2023 (2) 3.1 % Subordinated notes 5/15; 11/15 (1) 1,039 1,006 November 1, 2019 November 1, 2025 2.354 % Fixed-to-floating rate senior notes 5/1; 11/1 1,047 991 January 24, 2020 January 24, 2030 2.400 % Senior notes 1/24, 7/24 821 — March 30, 2020 March 30, 2023 2.825 % Fixed-to-floating rate senior notes 3/30, 9/30 748 — March 30, 2020 March 30, 2026 2.901 % Fixed-to-floating rate senior notes 3/30, 9/30 498 — March 30, 2020 March 30, 2031 3.152 % Fixed-to-floating rate senior notes 3/30, 9/30 497 — May 15, 2017 May 15, 2023 2.653 % Fixed-to-floating rate senior notes 5/15; 11/15 (1) 766 753 March 7, 2011 March 7, 2021 4.375 % Senior notes 3/7; 9/7 (1) 752 748 May 19, 2016 May 19, 2021 1.95 % Senior notes 5/19; 11/19 (1) 753 744 May 19, 2016 May 19, 2026 2.65 % Senior notes 5/19; 11/19 (1) 796 741 December 3, 2018 December 3, 2029 4.141 % Fixed-to-floating rate senior notes 6/3; 12/3 (1) 594 546 December 3, 2018 December 3, 2024 3.776 % Fixed-to-floating rate senior notes 6/3; 12/3 (1) 538 522 August 18, 2015 August 18, 2020 Floating-rate Senior notes 2/18; 5/18; 8/18; 11/18 — 500 April 30, 2007 June 15, 2047 Floating-rate Junior subordinated debentures 3/15; 6/15; 9/15; 12/15 499 499 November 1, 2019 November 1, 2034 (2) 3.031 % Fixed-to-floating rate senior subordinated notes 5/1; 11/1 546 492 May 15, 1998 May 15, 2028 Floating-rate Junior subordinated debentures 2/15; 5/15; 8/15; 11/15 100 100 June 21, 1996 June 15, 2026 (3) 7.35 % Senior notes 6/15; 12/15 150 150 Parent Company Long-term finance leases 103 136 Total long-term debt $ 13,805 $ 12,509 (1) We have entered into interest rate swap agreements, recorded as fair value hedges, to modify our interest expense on these senior and subordinated notes from a fixed rate to a floating rate. As of December 31, 2020 and 2019, the carrying value of long-term debt associated with these fair value hedges was $691 million and$157 million, respectively. Refer to Note 10 for additional information about fair value hedges. (2) The subordinated notes qualify for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines. (3) We may not redeem notes prior to their maturity. In the fourth quarter of 2019, we completed a cash tender offer for approximately $297 million of our $800 million aggregate principal amount of outstanding floating rate junior subordinated debentures due 2047, resulting in a gain of approximately $44 million. Additionally, in the fourth quarter of 2019, we completed a redemption for approximately $50 million of our $150 million aggregate principal amount of outstanding floating rate junior subordinated debentures due 2028. Termination of Replacement Capital Covenant Prior to November 20, 2019, we were subject to a replacement capital covenant dated April 30, 2007 (the Original RCC), as amended by the amendment to replacement capital covenant dated May 13, 2016 (the RCC Amendment and, together with the Original RCC, the Replacement Capital Covenant). Pursuant to the terms of the Replacement Capital Covenant, neither us nor any of our subsidiaries, including State Street Bank, was permitted to repay, redeem or purchase any of the outstanding floating rate junior subordinated debentures due 2047 prior to June 1, 2047 unless certain conditions had been satisfied, except to the extent that (i) we obtained the prior approval of the Federal Reserve, if such approval was then required, and (ii) we had received proceeds, up to specified percentages of the aggregate principal amount repaid or the applicable redemption or purchase price, from the sale or issuance of qualifying securities with characteristics that are the same as, or more equity-like than, the applicable characteristics of the floating rate junior subordinated debentures due 2047 during the 180 days prior to the date of that repayment, redemption or purchase (which period was to be shortened under certain specified circumstances). The Replacement Capital Covenant was a covenant for the benefit of persons buying, holding or selling specified series of our unsecured long-term indebtedness or our depository institution subsidiaries (the Covered Debt). The original Covered Debt under the Replacement Capital Covenant were the outstanding floating rate junior subordinated debentures due 2028. The Replacement Capital Covenant was terminated automatically without further action on November 20, 2019, following the settlement of the partial redemption of approximately $50 million aggregate principal amount of floating rate junior subordinated debentures due 2028 and the redesignation of our 2.650% Senior Notes due 2026 as Covered Debt for the purposes of the Replacement Capital Covenant, and purchases of the floating rate junior subordinated debentures due 2047 are permissible without issuing qualifying securities under the Replacement Capital Covenant. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 including those entered into for trading and asset-and-liability management activities as of the dates indicated: (In millions) December 31, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Interest rate contracts: Futures $ 2,842 $ 4,368 Foreign exchange contracts: Forward, swap and spot 2,640,989 2,378,808 Options purchased 946 1,581 Options written 661 1,110 Futures 1,980 1,040 Other: Stable value contracts (1) 32,359 26,895 Deferred value awards (2) 332 389 Derivatives designated as hedging instruments: Interest rate contracts: Swap agreements 7,449 15,196 Foreign exchange contracts: Forward and swap 5,221 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 discussion in this note under "Derivatives Not Designated as Hedging Instruments." |
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 11. Derivative Assets (1) Derivative Liabilities (2) (In millions) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 25,939 $ 15,140 $ 25,811 $ 15,054 Other derivative contracts — — 157 182 Total $ 25,939 $ 15,140 $ 25,968 $ 15,236 Derivatives designated as hedging instruments: Foreign exchange contracts $ 4 $ — $ 116 $ 96 Interest rate contracts 1 8 42 49 Total $ 5 $ 8 $ 158 $ 145 (1) Derivative assets are included within other assets in our consolidated statement of condition. (2) Derivative liabilities are included within 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 11. Derivative Assets (1) Derivative Liabilities (2) (In millions) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 25,939 $ 15,140 $ 25,811 $ 15,054 Other derivative contracts — — 157 182 Total $ 25,939 $ 15,140 $ 25,968 $ 15,236 Derivatives designated as hedging instruments: Foreign exchange contracts $ 4 $ — $ 116 $ 96 Interest rate contracts 1 8 42 49 Total $ 5 $ 8 $ 158 $ 145 (1) Derivative assets are included within other assets in our consolidated statement of condition. (2) Derivative liabilities are included within 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: Years Ended December 31, 2020 2019 2018 (In millions) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Derivatives not designated as hedging instruments: Foreign exchange contracts Foreign exchange trading services revenue $ 922 $ 630 $ 723 Foreign exchange contracts Interest expense (1) 63 (153) (41) Interest rate contracts Foreign exchange trading services revenue 3 (3) (6) Interest rate contracts Software and processing fees (1) — — (1) Other derivative contracts Foreign exchange trading services revenue — — 5 Other derivative contracts Compensation and employee benefits (189) (205) (171) Total $ 799 $ 269 $ 509 (1) 2018 includes approximately $15 million of swap costs related to the first quarter of 2018 that were reclassified from software and processing fees to interest expense. The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Years Ended December 31, Years Ended December 31, 2020 2019 2018 2020 2019 2018 (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: Foreign exchange contracts Software and processing fees $ — $ — $ (74) Investment securities Software and processing fees $ — $ — $ 74 Foreign exchange contracts Software and processing fees — — (328) Foreign exchange deposit Software and processing fees — — 328 Interest rate contracts Net interest income 1 (4) 31 Available-for-sale securities (1) Net interest income (4) 2 (32) Interest rate contracts Net interest income 566 266 (58) Long-term debt Net interest income (559) (255) 49 Total $ 567 $ 262 $ (429) $ (563) $ (253) $ 419 (1) In 2020, 2019 and 2018, $3 million, $18 million and $24 million, respectively, of net unrealized gains on AFS investment securities designated in fair value hedges were recognized in OCI. Years Ended December 31, Years Ended December 31, 2020 2019 2018 Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2020 2019 2018 (In millions) Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Derivatives designated as cash flow hedges: Interest rate contracts $ 176 $ 8 $ (12) Net interest income $ 49 $ (10) $ (1) Foreign exchange contracts (22) 43 (12) Net interest income 23 27 27 Total derivatives designated as cash flow hedges $ 154 $ 51 $ (24) $ 72 $ 17 $ 26 Derivatives designated as net investment hedges: Foreign exchange contracts $ (250) $ 30 $ 81 Gains (Losses) related to investment securities, net $ — $ — $ — Total derivatives designated as net investment hedges (250) 30 81 — — — Total $ (96) $ 81 $ 57 $ 72 $ 17 $ 26 |
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: December 31, 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 $ 496 $ 3 $ 10,023 $ 688 Available-for-sale securities 2,330 45 — — Total $ 2,826 $ 48 $ 10,023 $ 688 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) | 12 Months Ended |
Dec. 31, 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: December 31, 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 $ 25,943 $ (14,271) $ 11,672 $ — $ 11,672 Interest rate contracts (6) 1 — 1 — 1 Cash collateral and securities netting NA (5,869) (5,869) (1,105) (6,974) Total derivatives 25,944 (20,140) 5,804 (1,105) 4,699 Other financial instruments: Resale agreements and securities borrowing (7)(8) 174,461 (153,025) 21,436 (20,568) 868 Total derivatives and other financial instruments $ 200,405 $ (173,165) $ 27,240 $ (21,673) $ 5,567 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 $21.44 billion as of December 31, 2020 were $3.11 billion of resale agreements and $18.33 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 12 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: December 31, 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 $ 25,927 $ (14,271) $ 11,656 $ — $ 11,656 Interest rate contracts (6) 42 — 42 — 42 Other derivative contracts 157 — 157 — 157 Cash collateral and securities netting NA (1,287) (1,287) (1,732) (3,019) Total derivatives 26,126 (15,558) 10,568 (1,732) 8,836 Other financial instruments: Repurchase agreements and securities lending (7)(8) 165,793 (153,025) 12,768 (12,448) 320 Total derivatives and other financial instruments $ 191,919 $ (168,583) $ 23,336 $ (14,180) $ 9,156 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 $12.77 billion as of December 31, 2020 were $3.41 billion of repurchase agreements and $9.36 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 liabilities, respectively, in our consolidated statement of condition. Refer to Note 12 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 December 31, 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 $ 152,140 $ — $ — $ 152,140 $ 156,465 $ — $ — $ 156,465 Total 152,140 — — 152,140 156,465 — — 156,465 Securities lending transactions: US Treasury and agency securities — — — — 15 — — 15 Corporate debt securities 110 — — 110 354 — — 354 Equity securities 7,578 56 1,156 8,790 7,389 — 130 7,519 Other (1) 4,753 — — 4,753 7,500 — — 7,500 Total 12,441 56 1,156 13,653 15,258 — 130 15,388 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 164,581 $ 56 $ 1,156 $ 165,793 $ 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) | 12 Months Ended |
Dec. 31, 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) December 31, 2020 December 31, 2019 Commitments: Unfunded credit facilities $ 34,213 $ 29,697 Guarantees (1) : Indemnified securities financing $ 440,875 $ 367,901 Standby letters of credit 3,330 3,324 (1) 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) December 31, 2020 December 31, 2019 Fair value of indemnified securities financing $ 440,875 $ 367,901 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 463,273 385,428 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 54,432 45,658 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 58,092 48,887 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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 December 31, 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 (3) 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%, or 3.81350% effective December 15, 2020 Quarterly 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. (3) Series F preferred stock is redeemable on September 15, 2020 and on each succeeding dividend payment date. We did not elect redemption on September 15, 2020 or December 15, 2020. |
Dividends Declared | The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated: Years Ended December 31, 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 $ 1,313 $ 0.33 $ 6 $ 5,250 $ 1.32 $ 26 Series D 5,900 1.48 44 5,900 1.48 44 Series E — — — 6,000 1.52 45 Series F 6,223 62.23 47 5,250 52.50 40 Series G 5,352 1.32 27 5,352 1.32 27 Series H 5,625 56.25 28 5,625 56.25 28 Total $ 152 $ 210 The table below presents the dividends declared on common stock for the periods indicated: Years Ended December 31, 2020 2019 Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Common Stock $ 2.08 $ 734 $ 1.98 $ 728 |
Stock Repurchase Program | The table below presents the activity under our common stock purchase program for the period indicated: Year Ended December 31, 2020 Shares Acquired (In millions) Average Cost per Share Total Acquired (In millions) 2019 Program 6.5 $ 77.35 $ 500 Total 6.5 77.35 $ 500 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the after-tax components of AOCI for the periods indicated: Years Ended December 31, (In millions) 2020 2019 2018 Net unrealized gains (losses) on cash flow hedges $ 57 $ (70) $ (89) Net unrealized gains (losses) on available-for-sale securities portfolio 936 426 (193) Net unrealized gains (losses) related to reclassified available-for-sale securities (55) 19 58 Net unrealized gains (losses) on available-for-sale securities 881 445 (135) Net unrealized (losses) on available-for-sale securities designated in fair value hedges (33) (36) (40) Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries (204) 46 16 Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (2) (2) (2) Net unrealized (losses) on retirement plans (178) (187) (143) Foreign currency translation (334) (1,072) (963) Total $ 187 $ (876) $ (1,356) 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 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 13 563 33 2 — (42) 569 Reclassification of certain tax effects (1) (6) 21 (3) (1) (28) (67) (84) Amounts reclassified into (out of) earnings 12 — — (1) (16) — (5) Other comprehensive income (loss) 19 584 30 — (44) (109) 480 Balance as of December 31, 2019 $ (70) $ 409 $ 46 $ (2) $ (187) $ (1,072) $ (876) Other comprehensive income (loss) before reclassifications 75 439 (250) — — 738 1,002 Amounts reclassified into earnings 52 — — — 9 — 61 Other comprehensive income (loss) 127 439 (250) — 9 738 1,063 Balance as of December 31, 2020 $ 57 $ 848 $ (204) $ (2) $ (178) $ (334) $ 187 (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: Years Ended December 31, 2020 2019 (In millions) Amounts Reclassified into Affected Line Item in Consolidated Statement of Income Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of zero and zero, respectively $ — $ (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 $20 and $5 52 12 Net interest income reclassified from other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of $3 and ($8), respectively 9 (16) Compensation and employee benefits expenses Total reclassifications (into) out of Accumulated other comprehensive loss $ 61 $ (5) |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 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 as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III rule were phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table. State Street Corporation State Street Bank (Dollars in millions) Basel III Advanced Approaches December 31, 2020 Basel III Standardized Approach December 31, 2020 Basel III Advanced Approaches December 31, 2019 Basel III Standardized Approach December 31, 2019 Basel III Advanced Approaches December 31, 2020 Basel III Standardized Approach December 31, 2020 Basel III Advanced Approaches December 31, 2019 Basel III Standardized Approach December 31, 2019 Common shareholders' equity: Common stock and related surplus $ 10,709 $ 10,709 $ 10,636 $ 10,636 $ 12,893 $ 12,893 $ 12,893 $ 12,893 Retained earnings 23,442 23,442 21,918 21,918 12,939 12,939 13,218 13,218 Accumulated other comprehensive income (loss) 187 187 (870) (870) 371 371 (654) (654) Treasury stock, at cost (10,609) (10,609) (10,209) (10,209) — — — — Total 23,729 23,729 21,475 21,475 26,203 26,203 25,457 25,457 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (9,019) (9,019) (9,112) (9,112) (8,745) (8,745) (8,839) (8,839) Other adjustments (1) (333) (333) (150) (150) (152) (152) (1) (1) Common equity tier 1 capital 14,377 14,377 12,213 12,213 17,306 17,306 16,617 16,617 Preferred stock 2,471 2,471 2,962 2,962 — — — — Tier 1 capital 16,848 16,848 15,175 15,175 17,306 17,306 16,617 16,617 Qualifying subordinated long-term debt 961 961 1,095 1,095 966 966 1,099 1,099 Allowance for credit losses 1 148 5 90 10 148 3 90 Total capital $ 17,810 $ 17,957 $ 16,275 $ 16,360 $ 18,282 $ 18,420 $ 17,719 $ 17,806 Risk-weighted assets: Credit risk (2) $ 63,367 $ 114,892 $ 54,763 $ 102,367 $ 58,960 $ 110,797 $ 51,610 $ 98,979 Operational risk (3) 44,150 NA 47,963 NA 43,663 NA 44,138 NA Market risk 2,188 2,188 1,638 1,638 2,188 2,188 1,638 1,638 Total risk-weighted assets $ 109,705 $ 117,080 $ 104,364 $ 104,005 $ 104,811 $ 112,985 $ 97,386 $ 100,617 Adjusted quarterly average assets $ 263,490 $ 263,490 $ 219,624 $ 219,624 $ 260,489 $ 260,489 $ 216,397 $ 216,397 Capital Ratios: 2020 Minimum Requirements (4) 2019 Minimum Requirements (5) Common equity tier 1 capital 8.0 % 8.5 % 13.1 % 12.3 % 11.7 % 11.7 % 16.5 % 15.3 % 17.1 % 16.5 % Tier 1 capital 9.5 10.0 15.4 14.4 14.5 14.6 16.5 15.3 17.1 16.5 Total capital 11.5 12.0 16.2 15.3 15.6 15.7 17.4 16.3 18.2 17.7 Tier 1 leverage (6) 4.0 4.0 6.4 6.4 6.9 6.9 6.6 6.6 7.7 7.7 (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. (4) Assuming a countercyclical buffer of 0%, the minimum requirements include a capital conservation buffer and a stress capital buffer for advanced and standardized, respectively, and a G-SIB surcharge. (5) Assuming a countercyclical buffer of 0%, the minimum requirements include a capital conservation buffer and a G-SIB surcharge. (6) State Street Bank is required to maintain a minimum Tier 1 leverage ratio of 5% as it is the insured depository institution subsidiary of one of the eight US G-SIBs. NA Not applicable |
Net Interest Income (Tables)
Net Interest Income (Tables) | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, (In millions) 2020 2019 2018 Interest income: Interest-bearing deposits with banks $ 76 $ 416 $ 387 Investment securities: U.S. Treasury and federal agencies 1,174 1,443 1,178 State and political subdivisions 37 49 143 Other investments 366 505 560 Investment securities purchased under money market liquidity facility 117 — — Total Investment securities 1,694 1,997 1,881 Securities purchased under resale agreements 126 364 335 Loans and leases 624 769 687 Other interest-earning assets 55 395 372 Total interest income 2,575 3,941 3,662 Interest expense: Interest-bearing deposits (117) 663 363 Short term borrowings under money market liquidity facility 101 — — Securities sold under repurchase agreements 4 31 13 Other short-term borrowings 17 21 17 Long-term debt 312 414 389 Other interest-bearing liabilities 58 246 209 Total interest expense 375 1,375 991 Net interest income $ 2,200 $ 2,566 $ 2,671 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Shares Awarded | The following table presents the cumulative total number of shares that was awarded under the 2017 Plan and the 2006 Plan for the periods indicated: As of December 31, (In millions) 2020 2019 2018 Total number of shares awarded under the 2006 Plan 68.9 68.9 68.9 Total number of shares awarded under the 2017 Plan 11.3 7.6 3.9 |
Schedule of Deferred Stock Awards | Shares (In thousands) Weighted-Average Grant Date Fair Value Deferred Stock Awards: Outstanding as of December 31, 2018 5,975 $ 77.07 Granted 3,168 66.68 Vested (3,089) 71.20 Forfeited (220) 75.85 Outstanding as of December 31, 2019 5,834 74.33 Granted 2,926 63.56 Vested (2,938) 71.33 Forfeited (136) 71.79 Outstanding as of December 31, 2020 5,686 69.70 |
Schedule of Performance Awards | Shares (In thousands) Weighted-Average Grant Date Fair Value Performance Awards: Outstanding as of December 31, 2018 2,157 $ 69.36 Granted 510 66.04 Forfeited (96) 74.82 Paid out (432) 51.01 Outstanding as of December 31, 2019 2,139 71.82 Granted 811 62.58 Forfeited (23) 94.91 Paid out (410) 73.10 Outstanding as of December 31, 2020 2,517 68.42 |
Occupancy Expense and Informa_2
Occupancy Expense and Information Systems and Communications Expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Lease Costs and Other Information | The following table presents lease costs, sublease rental income, cash flows and new leases arising from lease transactions for 2020: Years Ended December 31, (In millions) 2020 2019 Finance lease: Amortization of right-of-use assets $ 20 $ 21 Interest on lease liabilities 9 11 Total finance lease expense 29 32 Sublease income (11) (9) Net finance lease expense 18 23 Operating lease: Operating lease expense 169 179 Sublease income (16) (6) Net operating lease expense 153 173 Net lease expense $ 171 $ 196 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 9 $ 11 Operating cash flows from operating leases 192 201 Financing cash flows from finance leases 33 54 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 38 $ 120 Finance leases — — The following table presents details related to remaining lease terms and discount rate as of December 31, 2020: December 31, 2020 December 31, 2019 Weighted-average remaining lease term (in years): Finance leases 2.7 3.8 Operating leases 7.1 7.6 Weighted-average discount rate: Finance leases 7 % 7 % Operating leases 3 % 3 % |
Schedule of Future Minimum Lease Payments, Operating Leases | The following table presents future minimum lease payments under non-cancellable leases as of December 31, 2020: (In millions) Operating Leases Finance Leases Total 2021 $ 186 $ 41 $ 227 2022 167 41 208 2023 147 31 178 2024 112 — 112 2025 93 — 93 Thereafter 275 — 275 Total future minimum lease payments 980 113 1,093 Less imputed interest (89) (10) (99) Total $ 891 $ 103 $ 994 |
Schedule of Future Minimum Lease Payments, Finance Leases | The following table presents future minimum lease payments under non-cancellable leases as of December 31, 2020: (In millions) Operating Leases Finance Leases Total 2021 $ 186 $ 41 $ 227 2022 167 41 208 2023 147 31 178 2024 112 — 112 2025 93 — 93 Thereafter 275 — 275 Total future minimum lease payments 980 113 1,093 Less imputed interest (89) (10) (99) Total $ 891 $ 103 $ 994 |
Expenses (Tables)
Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Expenses [Abstract] | |
Schedule of Expenses | The following table presents the components of other expenses for the periods indicated: Years Ended December 31, (In millions) 2020 2019 2018 Professional services $ 364 $ 321 $ 357 Sales advertising public relations 77 114 115 Regulatory fees and assessments 61 73 91 Securities processing 41 75 52 Donations 20 51 12 Bank operations 18 43 70 Insurance 14 19 18 Other 370 566 461 Total other expenses $ 965 $ 1,262 $ 1,176 |
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, 2017 $ 166 $ 32 $ 3 $ 201 Accruals for Beacon (7) — — (7) Accruals for Repositioning Charges 259 41 — 300 Payments and Other Adjustments (115) (36) (2) (153) Accrual Balance at December 31, 2018 303 37 1 341 Accruals for Beacon (2) — — (2) Accruals for Repositioning Charges 98 12 — 110 Payments and Other Adjustments (209) (42) — (251) Accrual Balance at December 31, 2019 190 7 1 198 Accruals for Beacon (4) — — (4) Accruals for Repositioning Charges 82 51 — 133 Payments and Other Adjustments (78) (52) (1) (131) Accrual Balance at December 31, 2020 $ 190 $ 6 $ — $ 196 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the components of income tax expense (benefit) for the periods indicated: Years Ended December 31, (In millions) 2020 2019 2018 Current: Federal $ 241 $ 157 $ 122 State 122 86 148 Non-U.S. 310 357 374 Total current expense 673 600 644 Deferred: Federal (168) (6) (128) State 5 33 (22) Non-U.S. (31) (157) 14 Total deferred expense (benefit) (194) (130) (136) Total income tax expense (benefit) $ 479 $ 470 $ 508 |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of the U.S. statutory income tax rate to our effective tax rate based on income before income tax expense for the periods indicated: Years Ended December 31, 2020 2019 2018 U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Changes from statutory rate: State taxes, net of federal benefit 3.8 3.4 3.1 Tax-exempt income (1.3) (1.5) (2.0) Business tax credits (1) (5.1) (5.4) (4.1) Foreign tax differential (0.8) (0.1) (0.6) Foreign legal entity restructuring — (4.3) — Foreign tax credit (benefits)/ limitations (0.9) 2.2 0.2 Deferred tax revaluation — — (1.0) Litigation expense — 1.6 0.3 Other, net (0.2) 0.4 (0.6) Effective tax rate 16.5 % 17.3 % 16.3 % (1) Business tax credits include low-income housing, production and investment tax credits. |
Schedule of Deferred Tax Assets and Liabilities | The following table presents significant components of our gross deferred tax assets and gross deferred tax liabilities as of the dates indicated: December 31, (In millions) 2020 2019 Deferred tax assets: Other amortizable assets $ 385 $ 394 Tax credit carryforwards 564 387 Lease obligations 243 254 Deferred compensation 110 120 Restructuring charges and other reserves 129 104 NOL and other carryforwards 101 73 Pension plan 56 66 Foreign currency translation 3 57 Total deferred tax assets 1,591 1,455 Valuation allowance for deferred tax assets (295) (330) Deferred tax assets, net of valuation allowance $ 1,296 $ 1,125 Deferred tax liabilities: Fixed and intangible assets $ 765 $ 763 Investment basis differences 269 258 Right-of-use Assets 187 223 Unrealized gains on investment securities, net 321 86 Other 51 32 Total deferred tax liabilities $ 1,593 $ 1,362 |
Summary of Valuation Allowance | The table below summarizes the deferred tax assets and related valuation allowances recognized as of December 31, 2020: (In millions) Deferred Tax Asset Valuation Allowance Expiration Other amortizable assets $ 385 $ (233) __ Tax credits 564 — 2038-2040 NOLs - Non-U.S. 65 (40) 2026-2031, None Other carryforwards 19 (5) None NOLs - State 17 (17) 2021-2040 |
Summary of Income Tax Contingencies | The following table presents activity related to unrecognized tax benefits as of the dates indicated: December 31, (In millions) 2020 2019 2018 Beginning balance $ 149 $ 108 $ 94 Decrease related to agreements with tax authorities — (17) (40) Increase related to tax positions taken during current year 47 13 12 Increase related to tax positions taken during prior years 137 49 44 Decreases related to a lapse of the applicable statute of limitations (25) (4) (2) Ending balance $ 308 $ 149 $ 108 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, (Dollars in millions, except per share amounts) 2020 2019 2018 Net income $ 2,420 $ 2,242 $ 2,593 Less: Preferred stock dividends (162) (232) (188) Dividends and undistributed earnings allocated to participating securities (1) (1) (1) (1) Net income available to common shareholders $ 2,257 $ 2,009 $ 2,404 Average common shares outstanding (In thousands): Basic average common shares 352,865 369,911 371,983 Effect of dilutive securities: equity-based awards 4,241 3,755 4,493 Diluted average common shares 357,106 373,666 376,476 Anti-dilutive securities (2) 1,066 2,052 1,011 Earnings per common share: Basic $ 6.40 $ 5.43 $ 6.46 Diluted (3) 6.32 5.38 6.39 (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 in Note 18. (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) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Components of Other in Segment Reporting | The following is a summary of our line of business results "Other" column for the periods indicated. Years Ended December 31, Other (Dollars in millions) 2020 2019 2018 Net repositioning charges $ 133 $ 110 $ 300 Net acquisition and restructuring costs 50 77 24 Accrual release (9) — — Legal and related expenses — 172 50 Business exit costs — — 24 Total $ 174 $ 359 $ 398 |
Summary of Line of Business Results | The following is a summary of our line of business results for the periods indicated. The amounts in the “Other” columns were not allocated to our business lines. Prior reported results reflect reclassifications, for comparative purposes, related to management changes in methodologies associated with allocations of revenue and expenses to lines of business in 2020. Years Ended December 31, Investment Investment Other Total (Dollars in millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Servicing fees $ 5,167 $ 5,074 $ 5,429 $ — $ — $ — $ — $ — $ (8) $ 5,167 $ 5,074 $ 5,421 Management fees — — — 1,880 1,824 1,899 — — — 1,880 1,824 1,899 Foreign exchange trading services 1,299 974 1,071 64 84 82 — — — 1,363 1,058 1,153 Securities finance 342 462 543 14 9 — — — — 356 471 543 Software and processing fees (1)(2) 706 691 443 27 29 (5) — — — 733 720 438 Total fee revenue (1) 7,514 7,201 7,486 1,985 1,946 1,976 — — (8) 9,499 9,147 9,454 Net interest income 2,211 2,590 2,691 (11) (24) (20) — — — 2,200 2,566 2,671 Total other income 4 43 6 — — — — — — 4 43 6 Total revenue (1) 9,729 9,834 10,183 1,974 1,922 1,956 — — (8) 11,703 11,756 12,131 Provision for credit losses 88 10 15 — — — — — — 88 10 15 Total expenses (1) 7,071 7,140 7,081 1,471 1,535 1,544 174 359 390 8,716 9,034 9,015 Income before income tax expense $ 2,570 $ 2,684 $ 3,087 $ 503 $ 387 $ 412 $ (174) $ (359) $ (398) $ 2,899 $ 2,712 $ 3,101 Pre-tax margin 26 % 27 % 30 % 25 % 20 % 21 % 25 % 23 % 26 % Average assets (in billions) $ 266.4 $ 220.3 $ 220.2 $ 2.9 $ 3.0 $ 3.2 $ 269.3 $ 223.3 $ 223.4 (1) Investment Servicing includes results from our acquisition of CRD on October 1, 2018. (2) Investment Management includes other revenue items that are primarily driven by equity market movements. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 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. The amounts in the "Other" columns were not allocated to our business lines. Year Ended December 31, 2020 Investment Servicing Investment Management Other Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2020 Servicing fees $ 5,167 $ — $ 5,167 $ — $ — $ — $ — $ — $ — $ 5,167 Management fees — — — 1,880 — 1,880 — — — 1,880 Foreign exchange trading services 377 922 1,299 64 — 64 — — — 1,363 Securities finance 212 130 342 — 14 14 — — — 356 Software and processing fees 487 219 706 — 27 27 — — — 733 Total fee revenue 6,243 1,271 7,514 1,944 41 1,985 — — — 9,499 Net interest income — 2,211 2,211 — (11) (11) — — — 2,200 Total other income — 4 4 — — — — — — 4 Total revenue $ 6,243 $ 3,486 $ 9,729 $ 1,944 $ 30 $ 1,974 $ — $ — $ — $ 11,703 Year Ended December 31, 2019 Investment Servicing Investment Management Other Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2019 Servicing fees $ 5,074 $ — $ 5,074 $ — $ — $ — $ — $ — $ — $ 5,074 Management fees — — — 1,824 — 1,824 — — — 1,824 Foreign exchange trading services 346 628 974 84 — 84 — — — 1,058 Securities finance 259 203 462 — 9 9 — — — 471 Software and processing fees 456 235 691 — 29 29 — — — 720 Total fee revenue 6,135 1,066 7,201 1,908 38 1,946 — — — 9,147 Net interest income — 2,590 2,590 — (24) (24) — — — 2,566 Total other income — 43 43 — — — — — — 43 Total revenue $ 6,135 $ 3,699 $ 9,834 $ 1,908 $ 14 $ 1,922 $ — $ — $ — $ 11,756 Year Ended December 31, 2018 Investment Servicing Investment Management Other Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2018 Servicing fees $ 5,429 $ — $ 5,429 $ — $ — $ — $ (8) $ — $ (8) $ 5,421 Management fees — — — 1,899 — 1,899 — — — 1,899 Foreign exchange trading services 361 710 1,071 82 — 82 — — — 1,153 Securities finance 308 235 543 — — — — — — 543 Software and processing fees 209 234 443 — (5) (5) — — — 438 Total fee revenue 6,307 1,179 7,486 1,981 (5) 1,976 (8) — (8) 9,454 Net interest income — 2,691 2,691 — (20) (20) — — — 2,671 Total other income — 6 6 — — — — — — 6 Total revenue $ 6,307 $ 3,876 $ 10,183 $ 1,981 $ (25) $ 1,956 $ (8) $ — $ (8) $ 12,131 |
Non-U.S. Activities (Tables)
Non-U.S. Activities (Tables) | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, 2020 2019 2018 (In millions) Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Total revenue $ 5,252 $ 6,451 $ 11,703 $ 5,230 $ 6,526 $ 11,756 $ 5,190 $ 6,941 $ 12,131 Income before income tax expense 1,146 1,753 2,899 1,248 1,464 2,712 1,294 1,807 3,101 (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. |
Parent Company Financial Stat_2
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Statement of Income - Parent Company | Statement of Income - Parent Company Years Ended December 31, (In millions) 2020 2019 2018 Cash dividends from consolidated banking subsidiary $ 2,721 $ 3,300 $ 785 Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities 118 285 41 Other, net 92 149 58 Total revenue 2,931 3,734 884 Interest expense 324 415 381 Other expenses 172 108 162 Total expenses 496 523 543 Income tax (benefit) (109) (91) (127) Income before equity in undistributed income of consolidated subsidiaries and unconsolidated entities 2,544 3,302 468 Equity in undistributed income of consolidated subsidiaries and unconsolidated entities: Consolidated banking subsidiary (277) (1,070) 1,944 Consolidated non-banking subsidiaries and unconsolidated entities 153 10 181 Net income $ 2,420 $ 2,242 $ 2,593 |
Statement of Condition - Parent Company | Statement of Condition - Parent Company As of December 31, (In millions) 2020 2019 Assets: Interest-bearing deposits with consolidated banking subsidiary $ 492 $ 428 Trading account assets 412 393 Investment securities available-for-sale 100 250 Investments in subsidiaries: Consolidated banking subsidiary 26,204 25,451 Consolidated non-banking subsidiaries 8,807 7,240 Unconsolidated entities 124 117 Notes and other receivables from: Consolidated banking subsidiary 81 — Consolidated non-banking subsidiaries and unconsolidated entities 3,885 3,361 Other assets 277 270 Total assets $ 40,382 $ 37,510 Liabilities: Accrued expenses and other liabilities $ 557 $ 696 Long-term debt 13,625 12,383 Total liabilities 14,182 13,079 Shareholders’ equity 26,200 24,431 Total liabilities and shareholders’ equity $ 40,382 $ 37,510 |
Statement of Cash Flows - Parent Company | Statement of Cash Flows - Parent Company Years Ended December 31, (In millions) 2020 2019 2018 Net cash provided by operating activities $ 3,513 $ 2,684 $ 2,250 Investing Activities: Net decrease (increase) in interest-bearing deposits with consolidated banking subsidiary (64) 58 46 Proceeds from sales and maturities of available-for-sale securities 1,000 900 — Purchases of available-for-sale securities (849) (921) (224) Investments in consolidated banking and non-banking subsidiaries (7,406) (6,165) (4,883) Sale or repayment of investment in consolidated banking and non-banking subsidiaries 4,999 5,345 2,472 Net cash (used in) provided by investing activities (2,320) (783) (2,589) Financing Activities: Proceeds from issuance of long-term debt, net of issuance costs 2,489 1,495 996 Payments for long-term debt (1,700) (50) (1,000) Proceeds from issuance of preferred stock, net of issuance costs — — 495 Proceeds from issuance of common stock, net of issuance costs — — 1,150 Payments for redemption of preferred stock (500) (750) — Repurchases of common stock (515) (1,585) (350) Repurchases of common stock for employee tax withholding (78) (81) (124) Payments for cash dividends (889) (930) (828) Net cash provided (used in) financing activities (1,193) (1,901) 339 Net change — — — Cash and due from banks at beginning of year — — — Cash and due from banks at end of year $ — $ — $ — |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Basis of Presentation (Details) - 12 months ended Dec. 31, 2020 | line_of_business | segment |
Accounting Policies [Abstract] | ||
Number of lines of business | 2 | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - New Accounting Pronouncement (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Change in retained earnings | $ 26,200 | $ 24,431 | |||
Allowance for credit loss | $ 122 | $ 74 | $ 67 | $ 54 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Change in retained earnings | $ (3) | ||||
Accounting Standards Update 2016-13 [Member] | Loans and Other Financial Assets Held at Amortized Cost | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit loss | 1 | ||||
Accounting Standards Update 2016-13 [Member] | Off Balance Sheet Commitments | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit loss | $ 2 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | $ 815 | $ 914 |
Investment securities available-for-sale | 59,048 | 53,815 |
Derivative assets | 5,804 | 4,753 |
Derivative asset, collateral, cash offset | 5,869 | 2,310 |
Derivative liability, collateral, cash offset | 1,287 | 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 | 9,550 | 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 | 1,880 | 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 | 470 | 680 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 815 | 914 |
Investment securities available-for-sale | 59,048 | 53,815 |
Derivative asset, Impact of Netting | (20,140) | (10,395) |
Derivative assets | 5,804 | 4,753 |
Other | 525 | 504 |
Other assets - impact of netting | 0 | 0 |
Total, derivative asset | 66,192 | 59,986 |
Derivative liability, Impact of Netting | (15,558) | (8,922) |
Derivative liabilities | 10,568 | 6,459 |
Total liabilities carried at fair value | 10,572 | 6,464 |
Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | (20,140) | (10,391) |
Derivative assets | 5,803 | 4,749 |
Derivative liability, Impact of Netting | (15,558) | (8,918) |
Derivative liabilities | 10,369 | 6,232 |
Recurring | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | 0 | (4) |
Derivative assets | 1 | 4 |
Derivative liability, Impact of Netting | 0 | (4) |
Derivative liabilities | 42 | 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 | 157 | 182 |
Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 40 | 34 |
Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 239 | 319 |
Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 536 | 561 |
Investment securities available-for-sale | 3,443 | 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 | 6,575 | 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 | 14,305 | 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 | 20,880 | 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 | 314 | 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 | 2,966 | 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 | 3,370 | 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 | 1,996 | 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 | 2,291 | 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 | 12,539 | 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 | 12,903 | 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 | 29,729 | 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 | 1,548 | 1,783 |
Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 78 | 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 | 57 | 201 |
Investment securities available-for-sale | 6,575 | 3,487 |
Derivative asset | 1 | 0 |
Other | 0 | 0 |
Total, derivative asset | 6,633 | 3,688 |
Derivative liability | 1 | 9 |
Total liabilities carried at fair value | 5 | 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 | 0 | 0 |
Derivative liability | 1 | 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 | 1 | 0 |
Derivative liability | 0 | 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 | 40 | 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 | 0 | 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 | 6,575 | 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 | 6,575 | 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 | 758 | 713 |
Investment securities available-for-sale | 52,459 | 47,576 |
Derivative asset | 25,941 | 15,144 |
Other | 525 | 504 |
Total, derivative asset | 79,683 | 63,937 |
Derivative liability | 26,124 | 15,369 |
Total liabilities carried at fair value | 26,124 | 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 | 25,941 | 15,136 |
Derivative liability | 25,925 | 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 | 0 | 8 |
Derivative liability | 42 | 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 | 157 | 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 | 239 | 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 | 519 | 540 |
Investment securities available-for-sale | 3,443 | 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 | 14,305 | 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 | 14,305 | 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 | 314 | 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 | 2,952 | 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 | 3,356 | 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 | 1,996 | 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 | 2,291 | 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 | 12,539 | 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 | 12,903 | 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 | 29,729 | 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 | 1,548 | 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 | 78 | 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 | 14 | 2,752 |
Derivative asset | 2 | 4 |
Other | 0 | 0 |
Total, derivative asset | 16 | 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 | 14 | 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 | 14 | 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 | 0 | 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 | 0 | 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 | 0 | 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 |
Trading liability, Impact of Netting | 0 | 0 |
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 |
Fair Value - Schedule of Fair_2
Fair Value - Schedule of Fair Value Measurements, Assets, Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | $ 2,756 | $ 1,288 |
Total realized and unrealized gain (losses) recorded in revenue | (6) | (14) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 27 | (10) |
Purchases | 870 | 1,544 |
Sales | (95) | 0 |
Settlements | (83) | (381) |
Transfers into Level 3 | 50 | 503 |
Transfers out of Level 3 | (3,503) | (174) |
Fair value, end of period | 16 | 2,756 |
Change in unrealized gains (losses) related to financial instruments held | (3) | (11) |
Derivative instruments, assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 4 | 4 |
Total realized and unrealized gain (losses) recorded in revenue | (6) | (15) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 |
Purchases | 5 | 16 |
Sales | 0 | 0 |
Settlements | (1) | (1) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 2 | 4 |
Change in unrealized gains (losses) related to financial instruments held | (3) | (11) |
Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 4 | 4 |
Total realized and unrealized gain (losses) recorded in revenue | (6) | (15) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 |
Purchases | 5 | 16 |
Sales | 0 | 0 |
Settlements | (1) | (1) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 2 | 4 |
Change in unrealized gains (losses) related to financial instruments held | (3) | (11) |
Available for sale Investment Securities, 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 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | |
Purchases | 123 | |
Sales | 0 | |
Settlements | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (123) | |
Fair value, end of period | 0 | |
Asset-backed securities, collateralized loan obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 1,820 | 593 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (10) | 0 |
Purchases | 864 | 1,065 |
Sales | (95) | 0 |
Settlements | (77) | (342) |
Transfers into Level 3 | 50 | 503 |
Transfers out of Level 3 | (2,538) | 0 |
Fair value, end of period | 14 | 1,820 |
Asset-backed Securities, Other | ||
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 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | |
Purchases | 0 | |
Sales | 0 | |
Settlements | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Fair value, end of period | 0 | |
Asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 1,820 | 593 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (10) | 0 |
Purchases | 864 | 1,065 |
Sales | (95) | 0 |
Settlements | (77) | (342) |
Transfers into Level 3 | 50 | 503 |
Transfers out of Level 3 | (2,538) | 0 |
Fair value, end of period | 14 | 1,820 |
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 | 887 | 631 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 35 | (9) |
Purchases | 1 | 340 |
Sales | 0 | 0 |
Settlements | (5) | (36) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (918) | (39) |
Fair value, end of period | 0 | 887 |
Non-U.S. debt securities, other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 45 | 58 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 2 | (1) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (47) | (12) |
Fair value, end of period | 0 | 45 |
Total non-U.S. debt securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 932 | 689 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 37 | (10) |
Purchases | 1 | 340 |
Sales | 0 | 0 |
Settlements | (5) | (36) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (965) | (51) |
Fair value, end of period | 0 | 932 |
State and political subdivisions | ||
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 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | |
Purchases | 0 | |
Sales | 0 | |
Settlements | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Fair value, end of period | 0 | |
Collateralized mortgage obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 0 | 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 | |
Investment securities available-for-sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 2,752 | 1,284 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 27 | (10) |
Purchases | 865 | 1,528 |
Sales | (95) | 0 |
Settlements | (82) | (380) |
Transfers into Level 3 | 50 | 503 |
Transfers out of Level 3 | (3,503) | (174) |
Fair value, end of period | $ 14 | $ 2,752 |
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 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Volatility | Option model | Derivative instruments, liabilities | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative liability, measurement input | 0.066 | |
Volatility | Option model | Derivative instruments, liabilities | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative liability, measurement input | 0.103 | |
Volatility | Option model | Derivative instruments, liabilities | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative liability, measurement input | 0.077 | 0.070 |
Volatility | Option model | Derivative instruments, assets | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative asset, measurement input | 0.057 | |
Volatility | Option model | Derivative instruments, assets | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative asset, measurement input | 0.103 | |
Volatility | Option model | Derivative instruments, assets | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative asset, measurement input | 0.079 | 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 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Assets: | ||
Cash and due from banks | $ 3,467 | $ 3,302 |
Interest-bearing deposits with banks | 116,960 | 68,965 |
Securities purchased under resale agreements | 3,106 | 1,487 |
Investment securities held-to-maturity | 50,003 | 42,157 |
Financial Liabilities: | ||
Non-interest-bearing | 49,439 | 34,031 |
Interest-bearing - U.S. | 102,331 | 77,504 |
Interest-bearing - non-U.S. | 88,028 | 70,337 |
Securities sold under repurchase agreements | 3,413 | 1,102 |
Other short-term borrowings | 685 | 839 |
Reported Amount | ||
Financial Assets: | ||
Cash and due from banks | 3,467 | 3,302 |
Interest-bearing deposits with banks | 116,960 | 68,965 |
Securities purchased under resale agreements | 3,106 | 1,487 |
Investment securities held-to-maturity | 48,929 | 41,782 |
Net loans (excluding leases) | 27,803 | 26,325 |
Other | 4,753 | 7,500 |
Financial Liabilities: | ||
Non-interest-bearing | 49,439 | 34,031 |
Interest-bearing - U.S. | 102,331 | 77,504 |
Interest-bearing - non-U.S. | 88,028 | 70,337 |
Securities sold under repurchase agreements | 3,413 | 1,102 |
Other short-term borrowings | 685 | 839 |
Long-term debt | 13,805 | 12,509 |
Other | 4,753 | 7,500 |
Reported Amount | HTM securities purchased under the MMLF program | ||
Financial Assets: | ||
Investment securities held-to-maturity | 3,299 | |
Reported Amount | Short-term borrowings under the MMLF program | ||
Financial Liabilities: | ||
Other short-term borrowings | 3,302 | |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 3,467 | 3,302 |
Interest-bearing deposits with banks | 116,960 | 68,965 |
Securities purchased under resale agreements | 3,106 | 1,487 |
Investment securities held-to-maturity | 50,003 | 42,157 |
Net loans (excluding leases) | 27,884 | 26,292 |
Other | 4,753 | 7,500 |
Financial Liabilities: | ||
Non-interest-bearing | 49,439 | 34,031 |
Interest-bearing - U.S. | 102,331 | 77,504 |
Interest-bearing - non-U.S. | 88,028 | 70,337 |
Securities sold under repurchase agreements | 3,413 | 1,102 |
Other short-term borrowings | 685 | 839 |
Long-term debt | 14,162 | 12,770 |
Other | 4,753 | 7,500 |
Estimated Fair Value | HTM securities purchased under the MMLF program | ||
Financial Assets: | ||
Investment securities held-to-maturity | 3,304 | |
Estimated Fair Value | Short-term borrowings under the MMLF program | ||
Financial Liabilities: | ||
Other short-term borrowings | 3,302 | |
Estimated Fair Value | Nonrecurring Measurement Basis | ||
Financial Assets: | ||
Net loans (excluding leases) | 9 | |
Estimated Fair Value | Quoted Market Prices in Active Markets (Level 1) | ||
Financial Assets: | ||
Cash and due from banks | 3,467 | 3,302 |
Interest-bearing deposits with banks | 0 | 0 |
Securities purchased under resale agreements | 0 | 0 |
Investment securities held-to-maturity | 6,115 | 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 | Quoted Market Prices in Active Markets (Level 1) | HTM securities purchased under the MMLF program | ||
Financial Assets: | ||
Investment securities held-to-maturity | 0 | |
Estimated Fair Value | Quoted Market Prices in Active Markets (Level 1) | Short-term borrowings under the MMLF program | ||
Financial Liabilities: | ||
Other short-term borrowings | 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 | 116,960 | 68,965 |
Securities purchased under resale agreements | 3,106 | 1,487 |
Investment securities held-to-maturity | 43,888 | 31,682 |
Net loans (excluding leases) | 25,668 | 24,432 |
Other | 4,753 | 7,500 |
Financial Liabilities: | ||
Non-interest-bearing | 49,439 | 34,031 |
Interest-bearing - U.S. | 102,331 | 77,504 |
Interest-bearing - non-U.S. | 88,028 | 70,337 |
Securities sold under repurchase agreements | 3,413 | 1,102 |
Other short-term borrowings | 685 | 839 |
Long-term debt | 14,049 | 12,621 |
Other | 4,753 | 7,500 |
Estimated Fair Value | Pricing Methods with Significant Observable Market Inputs (Level 2) | HTM securities purchased under the MMLF program | ||
Financial Assets: | ||
Investment securities held-to-maturity | 3,304 | |
Estimated Fair Value | Pricing Methods with Significant Observable Market Inputs (Level 2) | Short-term borrowings under the MMLF program | ||
Financial Liabilities: | ||
Other short-term borrowings | 3,302 | |
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 | 0 | 176 |
Net loans (excluding leases) | 2,216 | 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 | 113 | 149 |
Other | 0 | $ 0 |
Estimated Fair Value | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | HTM securities purchased under the MMLF program | ||
Financial Assets: | ||
Investment securities held-to-maturity | 0 | |
Estimated Fair Value | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Short-term borrowings under the MMLF program | ||
Financial Liabilities: | ||
Other short-term borrowings | $ 0 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($) | Mar. 31, 2020USD ($) | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Investment securities held to maturity purchased | $ 3,299,000,000 | $ 0 | $ 29,000,000,000 | |
Debt securities, held-to-maturity, allowance for credit loss | 3,000,000 | |||
Pledged securities not separately reported | 70,570,000,000 | 49,480,000,000 | ||
Investment securities available-for-sale | $ 59,048,000,000 | 53,815,000,000 | ||
Percentage of investment portfolio considered investment grade | 99.00% | |||
Provision (reversal) for credit loss | $ 88,000,000 | 10,000,000 | $ 15,000,000 | |
HTM securities writeoff | 0 | |||
Losses from other-than-temporary impairment | 0 | 3,000,000 | ||
Gross pre-tax unrealized losses | $ 123,000,000 | $ 169,000,000 | ||
Number of securities in loss position | security | 503 | 622 | ||
Gross losses from OTTI | $ 0 | (3,000,000) | ||
Held-to-Maturity Securities | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Provision (reversal) for credit loss | $ 3,000,000 | |||
Agency MBS | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Debt securities, available-for-sale, transferred security, at carrying value | 8,600,000,000 | 3,980,000,000 | 2,130,000 | |
Debt securities, available-for-sale, unrealized loss | 120,000,000 | 49,000,000 | (53,000,000) | |
ABS and municipal bonds | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Securities sold | 2,650,000,000 | 5,640,000,000 | 26,370,000,000 | |
Pre-tax gain (loss) on sale of securities | 4,000,000 | 1,000,000 | 9,000,000 | |
Non-U.S. debt securities, mortgage-backed securities | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Investment securities available-for-sale | $ 1,996,000,000 | 1,980,000,000 | ||
Accounting Standards Update 2017-12 | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Investment securities available-for-sale | $ 1,220,000,000 | |||
Loss from sale of HTM securities | $ 36,000,000 | |||
Minimum | Agency MBS | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Debt securities, available-for-sale, securities transferred, Security Term | 3 years | |||
Maximum | Agency MBS | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Debt securities, available-for-sale, securities transferred, Security Term | 37 years |
Investment Securities - Schedul
Investment Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | $ 57,987 | $ 53,314 |
Available for sale, gross unrealized gains | 1,087 | 575 |
Available for sale, gross unrealized losses | 26 | 74 |
Available-for-sale, fair value | 59,048 | 53,815 |
Held to maturity, amortized cost | 48,929 | 41,782 |
Investment securities held-to-maturity | 50,003 | 42,157 |
Debt securities, held-to-maturity, allowance for credit loss | 3 | |
US Treasury and federal agencies, direct obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 6,453 | 3,506 |
Available for sale, gross unrealized gains | 123 | 9 |
Available for sale, gross unrealized losses | 1 | 28 |
Available-for-sale, fair value | 6,575 | 3,487 |
Held to maturity, amortized cost | 6,057 | 10,311 |
Held to maturity, gross unrealized gains | 83 | 24 |
Held to maturity, gross unrealized losses | 0 | 3 |
Investment securities held-to-maturity | 6,140 | 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 | 13,891 | 17,599 |
Available for sale, gross unrealized gains | 421 | 264 |
Available for sale, gross unrealized losses | 7 | 25 |
Available-for-sale, fair value | 14,305 | 17,838 |
Held to maturity, amortized cost | 36,883 | 26,297 |
Held to maturity, gross unrealized gains | 955 | 316 |
Held to maturity, gross unrealized losses | 67 | 44 |
Investment securities held-to-maturity | 37,771 | 26,569 |
Total U.S. Treasury and federal agencies | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 20,344 | 21,105 |
Available for sale, gross unrealized gains | 544 | 273 |
Available for sale, gross unrealized losses | 8 | 53 |
Available-for-sale, fair value | 20,880 | 21,325 |
Held to maturity, amortized cost | 42,940 | 36,608 |
Held to maturity, gross unrealized gains | 1,038 | 340 |
Held to maturity, gross unrealized losses | 67 | 47 |
Investment securities held-to-maturity | 43,911 | 36,901 |
Asset-backed securities, student loans | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 313 | 532 |
Available for sale, gross unrealized gains | 2 | 1 |
Available for sale, gross unrealized losses | 1 | 2 |
Available-for-sale, fair value | 314 | 531 |
Held to maturity, amortized cost | 4,774 | 3,783 |
Held to maturity, gross unrealized gains | 33 | 10 |
Held to maturity, gross unrealized losses | 25 | 41 |
Investment securities held-to-maturity | 4,782 | 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 | 2,969 | 1,822 |
Available for sale, gross unrealized gains | 3 | 1 |
Available for sale, gross unrealized losses | 6 | 3 |
Available-for-sale, fair value | 2,966 | 1,820 |
Total asset-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 3,372 | 2,444 |
Available for sale, gross unrealized gains | 5 | 2 |
Available for sale, gross unrealized losses | 7 | 6 |
Available-for-sale, fair value | 3,370 | 2,440 |
Held to maturity, amortized cost | 4,774 | 3,783 |
Held to maturity, gross unrealized gains | 33 | 10 |
Held to maturity, gross unrealized losses | 25 | 41 |
Investment securities held-to-maturity | 4,782 | 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 | 1,994 | 1,978 |
Available for sale, gross unrealized gains | 4 | 3 |
Available for sale, gross unrealized losses | 2 | 1 |
Available-for-sale, fair value | 1,996 | 1,980 |
Held to maturity, amortized cost | 303 | 366 |
Held to maturity, gross unrealized gains | 68 | 82 |
Held to maturity, gross unrealized losses | 4 | 6 |
Investment securities held-to-maturity | 367 | 442 |
Non-U.S. debt securities, asset-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 2,294 | 2,179 |
Available for sale, gross unrealized gains | 1 | 2 |
Available for sale, gross unrealized losses | 4 | 2 |
Available-for-sale, fair value | 2,291 | 2,179 |
Non-U.S. debt securities, government securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 12,337 | 12,243 |
Available for sale, gross unrealized gains | 202 | 131 |
Available for sale, gross unrealized losses | 0 | 1 |
Available-for-sale, fair value | 12,539 | 12,373 |
Held to maturity, amortized cost | 342 | 328 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 342 | 328 |
Non-U.S. debt securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 12,729 | 8,595 |
Available for sale, gross unrealized gains | 177 | 73 |
Available for sale, gross unrealized losses | 3 | 10 |
Available-for-sale, fair value | 12,903 | 8,658 |
Total non-U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 29,354 | 24,995 |
Available for sale, gross unrealized gains | 384 | 209 |
Available for sale, gross unrealized losses | 9 | 14 |
Available-for-sale, fair value | 29,729 | 25,190 |
Held to maturity, amortized cost | 645 | 694 |
Held to maturity, gross unrealized gains | 68 | 82 |
Held to maturity, gross unrealized losses | 4 | 6 |
Investment securities held-to-maturity | 709 | 770 |
State and political subdivisions | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,470 | 1,725 |
Available for sale, gross unrealized gains | 80 | 59 |
Available for sale, gross unrealized losses | 2 | 1 |
Available-for-sale, fair value | 1,548 | 1,783 |
Collateralized mortgage obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 76 | 104 |
Available for sale, gross unrealized gains | 2 | 0 |
Available for sale, gross unrealized losses | 0 | 0 |
Available-for-sale, fair value | 78 | 104 |
Held to maturity, amortized cost | 572 | 697 |
Held to maturity, gross unrealized gains | 30 | 38 |
Held to maturity, gross unrealized losses | 1 | 1 |
Investment securities held-to-maturity | 601 | 734 |
Other U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 3,371 | 2,941 |
Available for sale, gross unrealized gains | 72 | 32 |
Available for sale, gross unrealized losses | 0 | 0 |
Available-for-sale, fair value | $ 3,443 | 2,973 |
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 | $ 9,550 | 5,500 |
Non-U.S. debt securities, corporate bonds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available-for-sale, fair value | 1,880 | 1,780 |
Non-US debt securities, covered bonds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available-for-sale, fair value | 470 | 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 | 700 | 940 |
Total Before MMLF | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Held to maturity, amortized cost | 48,931 | 41,782 |
Held to maturity, gross unrealized gains | 1,169 | 470 |
Held to maturity, gross unrealized losses | 97 | 95 |
Investment securities held-to-maturity | 50,003 | 42,157 |
Held-to-maturity under money market mutual fund liquidity facility | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Held to maturity, amortized cost | 3,300 | 0 |
Held to maturity, gross unrealized gains | 4 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 3,304 | 0 |
Including MMLF | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Held to maturity, amortized cost | 52,231 | 41,782 |
Held to maturity, gross unrealized gains | 1,173 | 470 |
Held to maturity, gross unrealized losses | 97 | 95 |
Investment securities held-to-maturity | $ 53,307 | $ 42,157 |
Investment Securities - Sched_2
Investment Securities - Schedule of Gross Pre-Tax Unrealized Losses on Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | $ 7,490 | $ 12,428 |
Available for sale, gross unrealized losses less than 12 months | 19 | 50 |
Available for sale, fair value 12 months or longer | 1,351 | 2,626 |
Available for sale, gross unrealized losses 12 months or longer | 7 | 24 |
Available for sale, fair value total | 8,841 | 15,054 |
Available for sale, gross unrealized losses total | 26 | 74 |
Held to maturity, fair value less than 12 months | 8,676 | |
Held-to-maturity, gross unrealized losses, less than 12 months | 53 | |
Held to maturity, fair value 12 months or longer | 4,894 | |
Held to maturity, gross unrealized losses 12 months or longer | 42 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 13,570 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 95 | |
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 | 1,636 | 1,430 |
Available for sale, gross unrealized losses less than 12 months | 1 | 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 | 1,636 | 1,430 |
Available for sale, gross unrealized losses total | 1 | 28 |
Held to maturity, fair value less than 12 months | 604 | |
Held-to-maturity, gross unrealized losses, less than 12 months | 0 | |
Held to maturity, fair value 12 months or longer | 2,262 | |
Held to maturity, gross unrealized losses 12 months or longer | 3 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 2,866 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 3 | |
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 | 1,394 | 2,499 |
Available for sale, gross unrealized losses less than 12 months | 7 | 7 |
Available for sale, fair value 12 months or longer | 63 | 1,665 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 18 |
Available for sale, fair value total | 1,457 | 4,164 |
Available for sale, gross unrealized losses total | 7 | 25 |
Held to maturity, fair value less than 12 months | 6,056 | |
Held-to-maturity, gross unrealized losses, less than 12 months | 31 | |
Held to maturity, fair value 12 months or longer | 1,606 | |
Held to maturity, gross unrealized losses 12 months or longer | 13 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 7,662 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 44 | |
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 | 3,030 | 3,929 |
Available for sale, gross unrealized losses less than 12 months | 8 | 35 |
Available for sale, fair value 12 months or longer | 63 | 1,665 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 18 |
Available for sale, fair value total | 3,093 | 5,594 |
Available for sale, gross unrealized losses total | 8 | 53 |
Held to maturity, fair value less than 12 months | 6,660 | |
Held-to-maturity, gross unrealized losses, less than 12 months | 31 | |
Held to maturity, fair value 12 months or longer | 3,868 | |
Held to maturity, gross unrealized losses 12 months or longer | 16 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 10,528 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 47 | |
Asset-backed securities, student loans | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 31 | 271 |
Available for sale, gross unrealized losses less than 12 months | 0 | 1 |
Available for sale, fair value 12 months or longer | 197 | 127 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 1 |
Available for sale, fair value total | 228 | 398 |
Available for sale, gross unrealized losses total | 1 | 2 |
Held to maturity, fair value less than 12 months | 2,003 | |
Held-to-maturity, gross unrealized losses, less than 12 months | 22 | |
Held to maturity, fair value 12 months or longer | 778 | |
Held to maturity, gross unrealized losses 12 months or longer | 19 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 2,781 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 41 | |
Asset-backed securities, credit cards | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 89 | |
Available for sale, gross unrealized losses less than 12 months | 1 | |
Available for sale, fair value 12 months or longer | 0 | |
Available for sale, gross unrealized losses 12 months or longer | 0 | |
Available for sale, fair value total | 89 | |
Available for sale, gross unrealized losses total | 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 | 1,498 | 862 |
Available for sale, gross unrealized losses less than 12 months | 4 | 2 |
Available for sale, fair value 12 months or longer | 369 | 278 |
Available for sale, gross unrealized losses 12 months or longer | 2 | 1 |
Available for sale, fair value total | 1,867 | 1,140 |
Available for sale, gross unrealized losses total | 6 | 3 |
Asset-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,529 | 1,222 |
Available for sale, gross unrealized losses less than 12 months | 4 | 4 |
Available for sale, fair value 12 months or longer | 566 | 405 |
Available for sale, gross unrealized losses 12 months or longer | 3 | 2 |
Available for sale, fair value total | 2,095 | 1,627 |
Available for sale, gross unrealized losses total | 7 | 6 |
Held to maturity, fair value less than 12 months | 2,003 | |
Held-to-maturity, gross unrealized losses, less than 12 months | 22 | |
Held to maturity, fair value 12 months or longer | 778 | |
Held to maturity, gross unrealized losses 12 months or longer | 19 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 2,781 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 41 | |
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 | 600 | 228 |
Available for sale, gross unrealized losses less than 12 months | 1 | 0 |
Available for sale, fair value 12 months or longer | 120 | 220 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 1 |
Available for sale, fair value total | 720 | 448 |
Available for sale, gross unrealized losses total | 2 | 1 |
Held to maturity, fair value less than 12 months | 0 | |
Held-to-maturity, gross unrealized losses, less than 12 months | 0 | |
Held to maturity, fair value 12 months or longer | 138 | |
Held to maturity, gross unrealized losses 12 months or longer | 6 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 138 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 6 | |
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 | 1,015 | 672 |
Available for sale, gross unrealized losses less than 12 months | 3 | 1 |
Available for sale, fair value 12 months or longer | 446 | 109 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 1 |
Available for sale, fair value total | 1,461 | 781 |
Available for sale, gross unrealized losses total | 4 | 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 | 489 | 3,246 |
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 | 489 | 3,246 |
Available for sale, gross unrealized losses total | 0 | 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 | 715 | 2,736 |
Available for sale, gross unrealized losses less than 12 months | 3 | 9 |
Available for sale, fair value 12 months or longer | 80 | 187 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 1 |
Available for sale, fair value total | 795 | 2,923 |
Available for sale, gross unrealized losses total | 3 | 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 | 2,819 | 6,882 |
Available for sale, gross unrealized losses less than 12 months | 7 | 11 |
Available for sale, fair value 12 months or longer | 646 | 516 |
Available for sale, gross unrealized losses 12 months or longer | 2 | 3 |
Available for sale, fair value total | 3,465 | 7,398 |
Available for sale, gross unrealized losses total | 9 | 14 |
Held to maturity, fair value less than 12 months | 0 | |
Held-to-maturity, gross unrealized losses, less than 12 months | 0 | |
Held to maturity, fair value 12 months or longer | 138 | |
Held to maturity, gross unrealized losses 12 months or longer | 6 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 138 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 6 | |
State and political subdivisions | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 95 | 163 |
Available for sale, gross unrealized losses less than 12 months | 0 | 0 |
Available for sale, fair value 12 months or longer | 76 | 22 |
Available for sale, gross unrealized losses 12 months or longer | 2 | 1 |
Available for sale, fair value total | 171 | 185 |
Available for sale, gross unrealized losses total | 2 | 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 | |
Held to maturity, fair value less than 12 months | 13 | |
Held-to-maturity, gross unrealized losses, less than 12 months | 0 | |
Held to maturity, fair value 12 months or longer | 110 | |
Held to maturity, gross unrealized losses 12 months or longer | 1 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 123 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 1 | |
Other U.S. debt securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 17 | 219 |
Available for sale, gross unrealized losses less than 12 months | 0 | 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 | 17 | 233 |
Available for sale, gross unrealized losses total | $ 0 | $ 0 |
Investment Securities - Sched_3
Investment Securities - Schedule of Contractual Maturities of Debt Securities (Details) $ in Millions | Dec. 31, 2020USD ($) |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | $ 7,612 |
Available for sale, under 1 year, fair value | 7,644 |
Available for sale, 1 to 5 years, amortized cost | 27,242 |
Available for sale, 1 to 5 years, fair value | 27,656 |
Available for sale, 6 to 10 years, amortized cost | 9,403 |
Available for sale, 6 to 10 years, fair value | 9,632 |
Available for sale, over 10 years, amortized cost | 13,730 |
Available for sale, over 10 years, fair value | 14,116 |
Available for sale, amortized cost | 57,987 |
Available for sale, fair value | 59,048 |
Held to maturity, under 1 year, amortized cost | 7,902 |
Held to maturity, under 1 year, fair value | 7,946 |
Held to maturity, 1 to 5 years, amortized cost | 3,421 |
Held to maturity, 1 to 5 years, fair value | 3,478 |
Held to maturity, 6 to 10 years, amortized cost | 5,724 |
Held to maturity, 6 to 10 years, fair value | 5,860 |
Held to maturity, over 10 years, amortized cost | 35,184 |
Held to maturity, over 10 years, fair value | 36,023 |
Held to maturity, amortized cost | 52,231 |
Held to maturity, fair value | 53,307 |
US Treasury and federal agencies, direct obligations | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 1,648 |
Available for sale, under 1 year, fair value | 1,661 |
Available for sale, 1 to 5 years, amortized cost | 2,758 |
Available for sale, 1 to 5 years, fair value | 2,771 |
Available for sale, 6 to 10 years, amortized cost | 2,047 |
Available for sale, 6 to 10 years, fair value | 2,143 |
Available for sale, over 10 years, amortized cost | 0 |
Available for sale, over 10 years, fair value | 0 |
Available for sale, amortized cost | 6,453 |
Available for sale, fair value | 6,575 |
Held to maturity, under 1 year, amortized cost | 3,480 |
Held to maturity, under 1 year, fair value | 3,512 |
Held to maturity, 1 to 5 years, amortized cost | 2,555 |
Held to maturity, 1 to 5 years, fair value | 2,607 |
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 | 22 |
Held to maturity, over 10 years, fair value | 21 |
Held to maturity, amortized cost | 6,057 |
Held to maturity, fair value | 6,140 |
US Treasury and federal agencies, mortgage-backed securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 121 |
Available for sale, under 1 year, fair value | 127 |
Available for sale, 1 to 5 years, amortized cost | 603 |
Available for sale, 1 to 5 years, fair value | 619 |
Available for sale, 6 to 10 years, amortized cost | 2,800 |
Available for sale, 6 to 10 years, fair value | 2,828 |
Available for sale, over 10 years, amortized cost | 10,367 |
Available for sale, over 10 years, fair value | 10,731 |
Available for sale, amortized cost | 13,891 |
Available for sale, fair value | 14,305 |
Held to maturity, under 1 year, amortized cost | 204 |
Held to maturity, under 1 year, fair value | 211 |
Held to maturity, 1 to 5 years, amortized cost | 423 |
Held to maturity, 1 to 5 years, fair value | 430 |
Held to maturity, 6 to 10 years, amortized cost | 5,036 |
Held to maturity, 6 to 10 years, fair value | 5,174 |
Held to maturity, over 10 years, amortized cost | 31,220 |
Held to maturity, over 10 years, fair value | 31,956 |
Held to maturity, amortized cost | 36,883 |
Held to maturity, fair value | 37,771 |
Total U.S. Treasury and federal agencies | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 1,769 |
Available for sale, under 1 year, fair value | 1,788 |
Available for sale, 1 to 5 years, amortized cost | 3,361 |
Available for sale, 1 to 5 years, fair value | 3,390 |
Available for sale, 6 to 10 years, amortized cost | 4,847 |
Available for sale, 6 to 10 years, fair value | 4,971 |
Available for sale, over 10 years, amortized cost | 10,367 |
Available for sale, over 10 years, fair value | 10,731 |
Available for sale, amortized cost | 20,344 |
Available for sale, fair value | 20,880 |
Held to maturity, under 1 year, amortized cost | 3,684 |
Held to maturity, under 1 year, fair value | 3,723 |
Held to maturity, 1 to 5 years, amortized cost | 2,978 |
Held to maturity, 1 to 5 years, fair value | 3,037 |
Held to maturity, 6 to 10 years, amortized cost | 5,036 |
Held to maturity, 6 to 10 years, fair value | 5,174 |
Held to maturity, over 10 years, amortized cost | 31,242 |
Held to maturity, over 10 years, fair value | 31,977 |
Held to maturity, amortized cost | 42,940 |
Held to maturity, fair value | 43,911 |
Asset-backed securities, student loans | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 113 |
Available for sale, under 1 year, fair value | 115 |
Available for sale, 1 to 5 years, amortized cost | 90 |
Available for sale, 1 to 5 years, fair value | 90 |
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 | 110 |
Available for sale, over 10 years, fair value | 109 |
Available for sale, amortized cost | 313 |
Available for sale, fair value | 314 |
Held to maturity, under 1 year, amortized cost | 350 |
Held to maturity, under 1 year, fair value | 343 |
Held to maturity, 1 to 5 years, amortized cost | 155 |
Held to maturity, 1 to 5 years, fair value | 152 |
Held to maturity, 6 to 10 years, amortized cost | 667 |
Held to maturity, 6 to 10 years, fair value | 665 |
Held to maturity, over 10 years, amortized cost | 3,602 |
Held to maturity, over 10 years, fair value | 3,622 |
Held to maturity, amortized cost | 4,774 |
Held to maturity, fair value | 4,782 |
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 | 76 |
Available for sale, under 1 year, fair value | 76 |
Available for sale, 1 to 5 years, amortized cost | 1,080 |
Available for sale, 1 to 5 years, fair value | 1,077 |
Available for sale, 6 to 10 years, amortized cost | 838 |
Available for sale, 6 to 10 years, fair value | 838 |
Available for sale, over 10 years, amortized cost | 975 |
Available for sale, over 10 years, fair value | 975 |
Available for sale, amortized cost | 2,969 |
Available for sale, fair value | 2,966 |
Total asset-backed securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 189 |
Available for sale, under 1 year, fair value | 191 |
Available for sale, 1 to 5 years, amortized cost | 1,170 |
Available for sale, 1 to 5 years, fair value | 1,167 |
Available for sale, 6 to 10 years, amortized cost | 928 |
Available for sale, 6 to 10 years, fair value | 928 |
Available for sale, over 10 years, amortized cost | 1,085 |
Available for sale, over 10 years, fair value | 1,084 |
Available for sale, amortized cost | 3,372 |
Available for sale, fair value | 3,370 |
Held to maturity, under 1 year, amortized cost | 350 |
Held to maturity, under 1 year, fair value | 343 |
Held to maturity, 1 to 5 years, amortized cost | 155 |
Held to maturity, 1 to 5 years, fair value | 152 |
Held to maturity, 6 to 10 years, amortized cost | 667 |
Held to maturity, 6 to 10 years, fair value | 665 |
Held to maturity, over 10 years, amortized cost | 3,602 |
Held to maturity, over 10 years, fair value | 3,622 |
Held to maturity, amortized cost | 4,774 |
Held to maturity, fair value | 4,782 |
Non-U.S. debt securities, mortgage-backed securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 260 |
Available for sale, under 1 year, fair value | 260 |
Available for sale, 1 to 5 years, amortized cost | 527 |
Available for sale, 1 to 5 years, fair value | 527 |
Available for sale, 6 to 10 years, amortized cost | 116 |
Available for sale, 6 to 10 years, fair value | 116 |
Available for sale, over 10 years, amortized cost | 1,091 |
Available for sale, over 10 years, fair value | 1,093 |
Available for sale, amortized cost | 1,994 |
Available for sale, fair value | 1,996 |
Held to maturity, under 1 year, amortized cost | 87 |
Held to maturity, under 1 year, fair value | 84 |
Held to maturity, 1 to 5 years, amortized cost | 23 |
Held to maturity, 1 to 5 years, fair value | 23 |
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 | 193 |
Held to maturity, over 10 years, fair value | 260 |
Held to maturity, amortized cost | 303 |
Held to maturity, fair value | 367 |
Non-U.S. debt securities, asset-backed securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 337 |
Available for sale, under 1 year, fair value | 337 |
Available for sale, 1 to 5 years, amortized cost | 1,250 |
Available for sale, 1 to 5 years, fair value | 1,247 |
Available for sale, 6 to 10 years, amortized cost | 272 |
Available for sale, 6 to 10 years, fair value | 272 |
Available for sale, over 10 years, amortized cost | 435 |
Available for sale, over 10 years, fair value | 435 |
Available for sale, amortized cost | 2,294 |
Available for sale, fair value | 2,291 |
Non-U.S. debt securities, government securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 3,149 |
Available for sale, under 1 year, fair value | 3,151 |
Available for sale, 1 to 5 years, amortized cost | 7,976 |
Available for sale, 1 to 5 years, fair value | 8,151 |
Available for sale, 6 to 10 years, amortized cost | 919 |
Available for sale, 6 to 10 years, fair value | 939 |
Available for sale, over 10 years, amortized cost | 293 |
Available for sale, over 10 years, fair value | 298 |
Available for sale, amortized cost | 12,337 |
Available for sale, fair value | 12,539 |
Held to maturity, under 1 year, amortized cost | 342 |
Held to maturity, under 1 year, fair value | 342 |
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 | 342 |
Held to maturity, fair value | 342 |
Non-U.S. debt securities, other | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 1,323 |
Available for sale, under 1 year, fair value | 1,329 |
Available for sale, 1 to 5 years, amortized cost | 9,520 |
Available for sale, 1 to 5 years, fair value | 9,652 |
Available for sale, 6 to 10 years, amortized cost | 1,718 |
Available for sale, 6 to 10 years, fair value | 1,752 |
Available for sale, over 10 years, amortized cost | 168 |
Available for sale, over 10 years, fair value | 170 |
Available for sale, amortized cost | 12,729 |
Available for sale, fair value | 12,903 |
Total non-U.S. debt securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 5,069 |
Available for sale, under 1 year, fair value | 5,077 |
Available for sale, 1 to 5 years, amortized cost | 19,273 |
Available for sale, 1 to 5 years, fair value | 19,577 |
Available for sale, 6 to 10 years, amortized cost | 3,025 |
Available for sale, 6 to 10 years, fair value | 3,079 |
Available for sale, over 10 years, amortized cost | 1,987 |
Available for sale, over 10 years, fair value | 1,996 |
Available for sale, amortized cost | 29,354 |
Available for sale, fair value | 29,729 |
Held to maturity, under 1 year, amortized cost | 429 |
Held to maturity, under 1 year, fair value | 426 |
Held to maturity, 1 to 5 years, amortized cost | 23 |
Held to maturity, 1 to 5 years, fair value | 23 |
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 | 193 |
Held to maturity, over 10 years, fair value | 260 |
Held to maturity, amortized cost | 645 |
Held to maturity, fair value | 709 |
State and political subdivisions | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 136 |
Available for sale, under 1 year, fair value | 136 |
Available for sale, 1 to 5 years, amortized cost | 605 |
Available for sale, 1 to 5 years, fair value | 626 |
Available for sale, 6 to 10 years, amortized cost | 514 |
Available for sale, 6 to 10 years, fair value | 559 |
Available for sale, over 10 years, amortized cost | 215 |
Available for sale, over 10 years, fair value | 227 |
Available for sale, amortized cost | 1,470 |
Available for sale, fair value | 1,548 |
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 | 76 |
Available for sale, over 10 years, fair value | 78 |
Available for sale, amortized cost | 76 |
Available for sale, fair value | 78 |
Held to maturity, under 1 year, amortized cost | 139 |
Held to maturity, under 1 year, fair value | 150 |
Held to maturity, 1 to 5 years, amortized cost | 265 |
Held to maturity, 1 to 5 years, fair value | 266 |
Held to maturity, 6 to 10 years, amortized cost | 21 |
Held to maturity, 6 to 10 years, fair value | 21 |
Held to maturity, over 10 years, amortized cost | 147 |
Held to maturity, over 10 years, fair value | 164 |
Held to maturity, amortized cost | 572 |
Held to maturity, fair value | 601 |
Other U.S. debt securities | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Available for sale, under 1 year, amortized cost | 449 |
Available for sale, under 1 year, fair value | 452 |
Available for sale, 1 to 5 years, amortized cost | 2,833 |
Available for sale, 1 to 5 years, fair value | 2,896 |
Available for sale, 6 to 10 years, amortized cost | 89 |
Available for sale, 6 to 10 years, fair value | 95 |
Available for sale, over 10 years, amortized cost | 0 |
Available for sale, over 10 years, fair value | 0 |
Available for sale, amortized cost | 3,371 |
Available for sale, fair value | 3,443 |
Total | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Held to maturity, under 1 year, amortized cost | 4,602 |
Held to maturity, under 1 year, fair value | 4,642 |
Held to maturity, 1 to 5 years, amortized cost | 3,421 |
Held to maturity, 1 to 5 years, fair value | 3,478 |
Held to maturity, 6 to 10 years, amortized cost | 5,724 |
Held to maturity, 6 to 10 years, fair value | 5,860 |
Held to maturity, over 10 years, amortized cost | 35,184 |
Held to maturity, over 10 years, fair value | 36,023 |
Held to maturity, amortized cost | 48,931 |
Held to maturity, fair value | 50,003 |
Held-to-maturity under money market mutual fund liquidity facility | |
Contractual Maturities Of Debt Investment Securities [Line Items] | |
Held to maturity, under 1 year, amortized cost | 3,300 |
Held to maturity, under 1 year, fair value | 3,304 |
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 | 3,300 |
Held to maturity, fair value | $ 3,304 |
Investment Securities - Gains a
Investment Securities - Gains and Losses Related to Investment Securities (Details) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross realized gains from sales of AFS investment securities | $ 31 | $ 205 |
Gross realized losses from sales of AFS investment securities | (32) | (196) |
Gross losses from OTTI | 0 | (3) |
Gains (losses) related to investment securities, net | (1) | 6 |
Impairment associated with adverse changes in timing of expected future cash flows | 0 | (3) |
Net impairment losses | $ 0 | $ (3) |
Investment Securities - Sched_4
Investment Securities - Schedule of Credit-Related Loss Activity Recognized In Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance, beginning of period | $ 78 | $ 77 |
Other-than-temporary-impairment recognized | 0 | 3 |
Realized losses on securities sold or matured | (8) | (2) |
Balance, end of period | $ 70 | $ 78 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Net Loans (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | $ 27,925 | $ 26,309 | ||
Allowance for credit losses | (122) | (74) | $ (67) | $ (54) |
Loans, net of allowance | 27,803 | 26,235 | ||
Geographic Distribution, Domestic | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 21,132 | 20,528 | ||
Non-U.S. | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 6,793 | 5,781 | ||
Fund Finance | Securities Finance Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 1,911 | 2,537 | ||
Fund Finance | Municipal Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 754 | 848 | ||
Fund Finance | Other Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 54 | 26 | ||
Fund Finance | Geographic Distribution, Domestic | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 11,531 | 10,270 | ||
Fund Finance | Geographic Distribution, Domestic | 40 Act Funds | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 6,391 | 6,040 | ||
Fund Finance | Geographic Distribution, Domestic | Business Development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 821 | 932 | ||
Fund Finance | Geographic Distribution, Domestic | Private Equity Capital Call Finance Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 8,380 | 6,076 | ||
Fund Finance | Non-U.S. | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 4,432 | 3,145 | ||
Leveraged loans | Geographic Distribution, Domestic | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 2,923 | 3,342 | ||
Leveraged loans | Non-U.S. | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 1,242 | 1,119 | ||
Overdrafts | Geographic Distribution, Domestic | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 1,894 | 1,739 | ||
Overdrafts | Non-U.S. | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 1,088 | 1,517 | ||
Other | Geographic Distribution, Domestic | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 2,688 | 3,411 | ||
Other | Non-U.S. | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 31 | 0 | ||
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 2,096 | |||
Commercial real estate | Geographic Distribution, Domestic | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | $ 2,096 | $ 1,766 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)loanloan_segment | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Number of loans and leases segments | loan_segment | 2 | |||
Loans and leases pledged as collateral | $ 8,070 | $ 6,750 | ||
Number of loans on non-accrual status | loan | 0 | 0 | ||
Loan with principal or interest payments 30 days or more contractually past due | loan | 1 | 0 | ||
Sale of loans | $ 324 | $ 131 | $ 278 | |
Loss on sale of loans | $ 41 | |||
Loans modified in troubled debt restructurings | loan | 0 | 0 | ||
Loans no longer meeting similar risk of collective pool | loan | 5 | 1 | ||
Loans no longer meeting similar risk of collective pool, amount | $ 77 | $ 25 | ||
Allowance for credit loss | $ 122 | 74 | 67 | $ 54 |
Investment grade loans | 81.00% | |||
Speculative grade loans | 19.00% | |||
Speculative senior secured loans with BB or B rating | 85.00% | |||
Provision (reversal) for credit loss | $ 88 | 10 | $ 15 | |
Leveraged Loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Sale of loans | 353 | |||
Commercial and Financial Segment | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Allowance for credit loss | $ 6 | $ 1 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Investments by Credit Quality (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | $ 27,925 | $ 26,309 |
Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 22,583 | 21,267 |
Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 5,224 | 5,008 |
Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 67 | 25 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 34 | 9 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 17 | 26,309 |
Commercial and Financial Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 25,829 | |
Commercial and Financial Segment | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 20,859 | 19,501 |
Commercial and Financial Segment | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 4,852 | 5,008 |
Commercial and Financial Segment | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 67 | 25 |
Commercial and Financial Segment | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 34 | 9 |
Commercial and Financial Segment | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 17 | 24,543 |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 2,096 | |
Commercial Real Estate | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 1,724 | 1,766 |
Commercial Real Estate | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 372 | 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 | 0 |
Commercial Real Estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 1,766 |
Geographic Distribution, Domestic | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 21,132 | 20,528 |
Geographic Distribution, Domestic | Commercial and Financial Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 19,036 | |
Geographic Distribution, Domestic | Commercial and Financial Segment | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 15,489 | |
Geographic Distribution, Domestic | Commercial and Financial Segment | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 3,446 | |
Geographic Distribution, Domestic | Commercial and Financial Segment | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 67 | |
Geographic Distribution, Domestic | Commercial and Financial Segment | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 34 | |
Geographic Distribution, Domestic | Commercial and Financial Segment | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | |
Geographic Distribution, Domestic | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 2,096 | 1,766 |
Geographic Distribution, Domestic | Commercial Real Estate | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 1,723 | |
Geographic Distribution, Domestic | Commercial Real Estate | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 373 | |
Geographic Distribution, Domestic | Loans to investment funds | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 11,531 | 10,270 |
Overdrafts | $ 2,982 | $ 3,256 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Amortized Cost Basis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 3,935 | |
2019 | 2,313 | |
2018 | 1,918 | |
2017 | 1,272 | |
2016 | 495 | |
Prior | 95 | |
Revolving Loans | 17,897 | |
Loans, gross | 27,925 | $ 26,309 |
Interest income | 72 | |
Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 22,583 | 21,267 |
Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 5,224 | 5,008 |
Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 67 | 25 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 34 | 9 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 17 | 26,309 |
Geographic Distribution, Domestic | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 21,132 | 20,528 |
Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 6,793 | 5,781 |
Commercial and Financial Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 25,829 | |
Commercial and Financial Segment | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 20,859 | 19,501 |
Commercial and Financial Segment | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 4,852 | 5,008 |
Commercial and Financial Segment | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 67 | 25 |
Commercial and Financial Segment | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 34 | 9 |
Commercial and Financial Segment | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 17 | 24,543 |
Commercial and Financial Segment | Geographic Distribution, Domestic | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 2,326 | |
2019 | 1,363 | |
2018 | 826 | |
2017 | 816 | |
2016 | 272 | |
Prior | 0 | |
Revolving Loans | 13,433 | |
Loans, gross | 19,036 | |
Commercial and Financial Segment | Geographic Distribution, Domestic | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,894 | |
2019 | 388 | |
2018 | 4 | |
2017 | 167 | |
2016 | 200 | |
Prior | 0 | |
Revolving Loans | 12,836 | |
Loans, gross | 15,489 | |
Commercial and Financial Segment | Geographic Distribution, Domestic | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 432 | |
2019 | 942 | |
2018 | 822 | |
2017 | 610 | |
2016 | 43 | |
Prior | 0 | |
Revolving Loans | 597 | |
Loans, gross | 3,446 | |
Commercial and Financial Segment | Geographic Distribution, Domestic | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 28 | |
2018 | 0 | |
2017 | 39 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Loans, gross | 67 | |
Commercial and Financial Segment | Geographic Distribution, Domestic | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 5 | |
2018 | 0 | |
2017 | 0 | |
2016 | 29 | |
Prior | 0 | |
Revolving Loans | 0 | |
Loans, gross | 34 | |
Commercial and Financial Segment | Geographic Distribution, Domestic | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Loans, gross | 0 | |
Commercial and Financial Segment | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,311 | |
2019 | 401 | |
2018 | 346 | |
2017 | 179 | |
2016 | 26 | |
Prior | 66 | |
Revolving Loans | 4,464 | |
Loans, gross | 6,793 | |
Commercial and Financial Segment | Non-U.S. | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,028 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 4,343 | |
Loans, gross | 5,371 | |
Commercial and Financial Segment | Non-U.S. | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 283 | |
2019 | 401 | |
2018 | 346 | |
2017 | 162 | |
2016 | 26 | |
Prior | 66 | |
Revolving Loans | 121 | |
Loans, gross | 1,405 | |
Commercial and Financial Segment | Non-U.S. | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 17 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Loans, gross | 17 | |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 2,096 | |
Commercial real estate | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 1,724 | 1,766 |
Commercial real estate | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 372 | 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 | 0 |
Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 1,766 |
Commercial real estate | Geographic Distribution, Domestic | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 298 | |
2019 | 549 | |
2018 | 746 | |
2017 | 277 | |
2016 | 197 | |
Prior | 29 | |
Revolving Loans | 0 | |
Loans, gross | 2,096 | $ 1,766 |
Commercial real estate | Geographic Distribution, Domestic | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 178 | |
2019 | 383 | |
2018 | 688 | |
2017 | 277 | |
2016 | 197 | |
Prior | 0 | |
Revolving Loans | 0 | |
Loans, gross | 1,723 | |
Commercial real estate | Geographic Distribution, Domestic | Speculative | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 120 | |
2019 | 166 | |
2018 | 58 | |
2017 | 0 | |
2016 | 0 | |
Prior | 29 | |
Revolving Loans | 0 | |
Loans, gross | $ 373 |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 74 | $ 67 | $ 54 |
Charge-offs | (3) | (2) | |
Provision (reversal) for credit loss | 88 | 10 | 15 |
Ending balance | 122 | 74 | $ 67 |
Leveraged Loans | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 61 | ||
Charge-offs | (41) | ||
Provision (reversal) for credit loss | 70 | ||
Other | (7) | ||
Ending balance | 97 | 61 | |
Other Loans | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 10 | ||
Charge-offs | 0 | ||
Provision (reversal) for credit loss | 7 | ||
Other | 0 | ||
Ending balance | 17 | 10 | |
Other Loans | Fund Finance | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Ending balance | 13 | ||
Other Loans | Other Loans | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Ending balance | 4 | ||
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 2 | ||
Charge-offs | 0 | ||
Provision (reversal) for credit loss | 6 | ||
Other | 0 | ||
Ending balance | 8 | 2 | |
Held-to-Maturity Securities | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 0 | ||
Charge-offs | 0 | ||
Provision (reversal) for credit loss | 3 | ||
Other | 0 | ||
Ending balance | 3 | 0 | |
Off Balance Sheet Commitments | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 19 | ||
Charge-offs | 0 | ||
Provision (reversal) for credit loss | 2 | ||
Other | (1) | ||
Ending balance | 22 | 19 | |
All Other | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1 | ||
Charge-offs | 0 | ||
Provision (reversal) for credit loss | 0 | ||
Other | 0 | ||
Ending balance | 1 | 1 | |
Total Credit Reserve | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 93 | ||
Charge-offs | (41) | ||
Provision (reversal) for credit loss | 88 | ||
Other | (8) | ||
Ending balance | $ 148 | $ 93 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Schedule of Activity In The Allowance For Loan Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 74 | $ 67 | $ 54 |
Provision for credit losses | 88 | 10 | 15 |
Charge-offs | (3) | (2) | |
Ending balance | $ 122 | $ 74 | $ 67 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ 0 |
Amortization of other intangible assets | $ 234,000,000 | $ 236,000,000 | $ 226,000,000 |
Client relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 5 years | ||
Client relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 20 years | ||
Technology | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 3 years | ||
Technology | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 10 years | ||
Core deposits | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 16 years | ||
Core deposits | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 22 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 7,556 | $ 7,446 |
Acquisitions | 122 | |
Foreign currency translation | 127 | (12) |
Ending balance | 7,683 | 7,556 |
Decrease in intangible assets | (93) | |
Investment Servicing | ||
Goodwill [Roll Forward] | ||
Beginning balance | 7,289 | 7,180 |
Acquisitions | 122 | |
Foreign currency translation | 124 | (13) |
Ending balance | 7,413 | 7,289 |
Decrease in intangible assets | (93) | |
Investment Management | ||
Goodwill [Roll Forward] | ||
Beginning balance | 267 | 266 |
Acquisitions | 0 | |
Foreign currency translation | 3 | 1 |
Ending balance | 270 | 267 |
Decrease in intangible assets | $ 0 | |
CRD Acquisition | ||
Goodwill [Roll Forward] | ||
Increase to goodwill | 113 | |
Decrease in intangible assets | $ (93) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | $ 2,030 | $ 2,369 | |
Acquisitions | (93) | ||
Amortization | (234) | (236) | $ (226) |
Foreign currency translation | 31 | (10) | |
Ending balance | 1,827 | 2,030 | 2,369 |
Investment Servicing | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 1,908 | 2,218 | |
Acquisitions | (93) | ||
Amortization | (206) | (207) | |
Foreign currency translation | 31 | (10) | |
Ending balance | 1,733 | 1,908 | 2,218 |
Investment Management | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 122 | 151 | |
Acquisitions | 0 | ||
Amortization | (28) | (29) | |
Foreign currency translation | 0 | 0 | |
Ending balance | 94 | $ 122 | $ 151 |
CRD Acquisition | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Acquisitions | $ (93) |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Gross Carrying Amount, Accumulated Amortization And Net Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 3,894 | $ 4,280 | |
Accumulated Amortization | (2,067) | (2,250) | |
Net Carrying Amount | 1,827 | 2,030 | $ 2,369 |
Client relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 2,704 | 3,104 | |
Accumulated Amortization | (1,450) | (1,718) | |
Net Carrying Amount | 1,254 | 1,386 | |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 393 | 403 | |
Accumulated Amortization | (113) | (87) | |
Net Carrying Amount | 280 | 316 | |
Core deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 690 | 673 | |
Accumulated Amortization | (425) | (381) | |
Net Carrying Amount | 265 | 292 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 107 | 100 | |
Accumulated Amortization | (79) | (64) | |
Net Carrying Amount | $ 28 | $ 36 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Amortization Expense (Details) $ in Millions | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2021 | $ 235 |
2022 | 232 |
2023 | 231 |
2024 | 224 |
2025 | $ 199 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | ||
Securities borrowed | $ 18,330 | $ 18,524 |
Derivative instruments, net | 5,804 | 4,753 |
Bank-owned life insurance | 3,479 | 3,395 |
Investments in joint ventures and other unconsolidated entities | 3,095 | 2,899 |
Collateral, net | 2,713 | 874 |
Right-of-use assets | 720 | 858 |
Prepaid expenses | 383 | 395 |
Accounts receivable | 379 | 432 |
Income taxes receivable | 367 | 309 |
Deferred tax assets, net of valuation allowance(2) | 233 | 216 |
Receivable for securities settlement | 117 | 336 |
Deposits with clearing organizations | 58 | 58 |
Other | 832 | 962 |
Total | $ 36,510 | $ 34,011 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Time deposits, at $250,000 or more | $ 1,680 | $ 35,150 |
Demand deposit overdrafts | $ 2,980 | 3,260 |
Non-U.S. | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Time deposits, at $250,000 or more | 139 | |
Wholesale CDs | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Time deposits, at $250,000 or more | 3,000 | |
Customer Deposits | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Time deposits, at $250,000 or more | $ 32,010 |
Short-Term Borrowings - Narrati
Short-Term Borrowings - Narrative (Details) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019USD ($) |
Short-term Debt [Line Items] | |||
Weighted-average interest rate as of year-end | 0.93% | 0.93% | 1.64% |
Average balance of securities purchased under agreement to resell and securities sold under agreement to repurchase | $ 100,450,000,000 | $ 86,670,000,000 | |
Maximum borrowing on line of credit | 1,100,000,000 | $ 1,400,000,000 | |
Balance on line of credit | 0 | $ 0 | |
U.S. Government Securities Sold | |||
Short-term Debt [Line Items] | |||
Fair value of overnight maturity | $ 3,981,000,000 |
Short-Term Borrowings - Outstan
Short-Term Borrowings - Outstanding and weighted-average interest rates of short-term borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | |||
Weighted-average interest rate as of year-end | 0.93% | 1.64% | |
Securities Sold Under Repurchase Agreements | |||
Short-term Debt [Line Items] | |||
Balance as of December 31 | $ 3,413 | $ 1,102 | $ 1,082 |
Maximum outstanding as of any month-end | 5,373 | 4,125 | 3,441 |
Average outstanding during the year | $ 2,615 | $ 1,616 | $ 2,048 |
Weighted-average interest rate as of year-end | 0.00% | 0.00% | 1.38% |
Weighted-average interest rate during the year | 0.14% | 1.90% | 0.62% |
Tax-Exempt Investment Program | |||
Short-term Debt [Line Items] | |||
Balance as of December 31 | $ 616 | $ 823 | $ 931 |
Maximum outstanding as of any month-end | 823 | 931 | 1,078 |
Average outstanding during the year | $ 771 | $ 898 | $ 1,023 |
Weighted-average interest rate as of year-end | 0.23% | 1.75% | 1.74% |
Weighted-average interest rate during the year | 0.78% | 1.51% | 1.46% |
Other | |||
Short-term Debt [Line Items] | |||
Balance as of December 31 | $ 3,302 | $ 0 | $ 2,000 |
Maximum outstanding as of any month-end | 25,665 | 0 | $ 2,000 |
Average outstanding during the year | $ 8,251 | $ 3 | |
Weighted-average interest rate as of year-end | 1.35% | 0.00% | 2.68% |
Weighted-average interest rate during the year | 1.23% | 0.01% |
Short-Term Borrowings - Overnig
Short-Term Borrowings - Overnight maturity (Details) $ in Millions | Dec. 31, 2020USD ($) |
U.S. Government Securities Sold | |
Short-term Debt [Line Items] | |
Amortized cost of overnight maturity | $ 2,992 |
Fair value of overnight maturity | 3,981 |
Repurchase Agreements | |
Short-term Debt [Line Items] | |
Amortized cost of overnight maturity | $ 3,413 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Long-term finance leases | $ 55 | $ 78 |
Total long-term debt | 13,805 | 12,509 |
Fair Value Hedges | ||
Debt Instrument [Line Items] | ||
Decrease in carrying value of long-term debt | $ 691 | 157 |
Senior notes | 3.55% notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.55% | |
Senior notes | 2.55% notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 2.55% | |
Senior notes | 3.7% notes due in 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.70% | |
Senior notes | 3.3% notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.30% | |
Senior notes | 2.354% notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 2.354% | |
Senior notes | 2.400% notes due 2030 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 2.40% | |
Senior notes | 2.825% notes due 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 2.825% | |
Senior notes | 2.901% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 2.901% | |
Senior notes | 3.152% notes due 2031 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.152% | |
Senior notes | 2.653% notes due 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 2.653% | |
Senior notes | 4.375% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 4.375% | |
Senior notes | 1.95% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 1.95% | |
Senior notes | 2.65% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 2.65% | |
Senior notes | 4.141% notes due 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 4.141% | |
Senior notes | 3.776% notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.776% | |
Senior notes | 7.35% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 7.35% | |
Subordinated notes | 3.1% subordinated notes due 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.10% | |
Subordinated notes | 3.031% notes due 2034 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.031% | |
Parent Company and Non-banking Subsidiaries | Senior notes | 3.55% notes due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,413 | 1,331 |
Parent Company and Non-banking Subsidiaries | Senior notes | 2.55% notes due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 1,191 |
Parent Company and Non-banking Subsidiaries | Senior notes | 3.7% notes due in 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,070 | 1,037 |
Parent Company and Non-banking Subsidiaries | Senior notes | 3.3% notes due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,075 | 1,022 |
Parent Company and Non-banking Subsidiaries | Senior notes | 2.354% notes due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,047 | 991 |
Parent Company and Non-banking Subsidiaries | Senior notes | 2.400% notes due 2030 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 821 | 0 |
Parent Company and Non-banking Subsidiaries | Senior notes | 2.825% notes due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 748 | 0 |
Parent Company and Non-banking Subsidiaries | Senior notes | 2.901% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 498 | 0 |
Parent Company and Non-banking Subsidiaries | Senior notes | 3.152% notes due 2031 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 497 | 0 |
Parent Company and Non-banking Subsidiaries | Senior notes | 2.653% notes due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 766 | 753 |
Parent Company and Non-banking Subsidiaries | Senior notes | 4.375% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 752 | 748 |
Parent Company and Non-banking Subsidiaries | Senior notes | 1.95% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 753 | 744 |
Parent Company and Non-banking Subsidiaries | Senior notes | 2.65% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 796 | 741 |
Parent Company and Non-banking Subsidiaries | Senior notes | 4.141% notes due 2029 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 594 | 546 |
Parent Company and Non-banking Subsidiaries | Senior notes | 3.776% notes due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 538 | 522 |
Parent Company and Non-banking Subsidiaries | Senior notes | Floating-rate notes due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 500 |
Parent Company and Non-banking Subsidiaries | Senior notes | 7.35% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 150 | 150 |
Parent Company and Non-banking Subsidiaries | Subordinated notes | 3.1% subordinated notes due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,039 | 1,006 |
Parent Company and Non-banking Subsidiaries | Subordinated notes | 3.031% notes due 2034 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 546 | 492 |
Parent Company and Non-banking Subsidiaries | Junior subordinated debentures | Floating Rate Subordinated Debentures Due 2047 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 499 | 499 |
Parent Company and Non-banking Subsidiaries | Junior subordinated debentures | Floating-rate subordinated notes due to State Street Capital Trust I in 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 100 | 100 |
State Street Bank | ||
Debt Instrument [Line Items] | ||
Long-term finance leases | $ 103 | $ 136 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ in Millions | Nov. 20, 2019 | Dec. 31, 2019 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Long-term finance leases | $ 78 | $ 55 | |
State Street Bank | |||
Debt Instrument [Line Items] | |||
Long-term finance leases | 136 | $ 103 | |
Floating Rate Subordinated Debentures Due 2047 | Junior subordinated debentures | |||
Debt Instrument [Line Items] | |||
Amount redeemed | 297 | ||
Aggregate principal amount | 800 | ||
Gain on redemption | 44 | ||
Floating-rate subordinated notes due to State Street Capital Trust I in 2028 | Junior subordinated debentures | |||
Debt Instrument [Line Items] | |||
Amount redeemed | 50 | ||
Aggregate principal amount | $ 150 | ||
Replacement Capital Covenant | |||
Debt Instrument [Line Items] | |||
Amount redeemed | $ 50 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 26,126 | $ 15,381 |
Interest rate swap | Fair Value Hedges | ||
Derivative [Line Items] | ||
Notional amount of derivative instruments | 2,600 | $ 10,200 |
Credit swap agreements | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 3,910 | |
Cash collateral provided for derivative instruments | 1,690 | |
Maximum additional amount of payments related to termination events | $ 2,220 | |
Floating-rate loans | ||
Derivative [Line Items] | ||
Term of debt instrument | 3 years 8 months 12 days |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Outstanding Hedges: (Notional Amount) (Details) - USD ($) $ in Millions | Dec. 31, 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 | $ 2,842 | $ 4,368 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 1,980 | 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 | 2,640,989 | 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 | 946 | 1,581 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options written | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 661 | 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 | 32,359 | 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 | 332 | 389 |
Derivatives designated as hedging instruments | Interest rate contracts | Swap agreements | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 7,449 | 15,196 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Forward and swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | $ 5,221 | $ 3,176 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of The Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 25,944 | $ 15,148 |
Fair value of derivative liabilities | 26,126 | 15,381 |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 25,943 | 15,140 |
Fair value of derivative liabilities | 25,927 | 15,150 |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 1 | 8 |
Fair value of derivative liabilities | 42 | 49 |
Derivatives not designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 25,939 | 15,140 |
Derivatives not designated as hedging instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 25,968 | 15,236 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 25,939 | 15,140 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 25,811 | 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 | 157 | 182 |
Derivatives designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 5 | 8 |
Derivatives designated as hedging instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 158 | 145 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 4 | 0 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 116 | 96 |
Derivatives designated as hedging instruments | Interest rate contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 1 | 8 |
Derivatives designated as hedging instruments | Interest rate contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 42 | $ 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 | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | $ 799 | $ 269 | $ 509 | |
Foreign exchange contracts | Foreign exchange trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 922 | 630 | 723 | |
Foreign exchange contracts | Interest expense | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | $ 15 | 63 | (153) | (41) |
Interest rate contracts | Foreign exchange trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 3 | (3) | (6) | |
Interest rate contracts | Software and processing fees | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | (1) | |
Other derivative contracts | Foreign exchange trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | 5 | |
Other derivative contracts | Compensation and employee benefits | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | $ (189) | $ (205) | $ (171) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Carrying Amount and Cumulative Basis Adjustments for Hedge Accounting (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Hedged Items Currently Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | $ 2,826 | $ 10,709 |
Cumulative Hedge Accounting Basis Adjustments | 48 | 213 |
Hedged Items Currently Designated | Long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 496 | 9,769 |
Cumulative Hedge Accounting Basis Adjustments | 3 | 164 |
Hedged Items Currently Designated | Investment securities available-for-sale | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 2,330 | 940 |
Cumulative Hedge Accounting Basis Adjustments | 45 | 49 |
Hedged Items No Longer Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 10,023 | 1,199 |
Cumulative Hedge Accounting Basis Adjustments | 688 | (8) |
Hedged Items No Longer Designated | Long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 10,023 | 1,199 |
Cumulative Hedge Accounting Basis Adjustments | 688 | (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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | $ 567 | $ 262 | $ (429) |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | (563) | (253) | 419 |
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes | 3 | 18 | 24 |
Investment securities | Software and processing fees | Foreign exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | 0 | 0 | (74) |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | 0 | 0 | 74 |
Foreign exchange deposit | Software and processing fees | Foreign exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | 0 | 0 | (328) |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | 0 | 0 | 328 |
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 | 1 | (4) | 31 |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | (4) | 2 | (32) |
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 | 566 | 266 | (58) |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | $ (559) | $ (255) | $ 49 |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Gain (loss) on derivative recognized in OCI, cash flow hedge | $ 154 | $ 51 | $ (24) |
Gain (loss) on derivative recognized in OCI, net investment hedge | (250) | 30 | 81 |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative | (96) | 81 | 57 |
Gain (loss) on hedges reclassified to income, cash flow hedge | 72 | 17 | 26 |
Gain (loss) on hedges reclassified to income, net investment hedge | 0 | 0 | 0 |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 72 | 17 | 26 |
Interest rate contracts | |||
Derivative [Line Items] | |||
Gain (loss) on derivative recognized in OCI, cash flow hedge | 176 | 8 | (12) |
Interest rate contracts | Net interest revenue | |||
Derivative [Line Items] | |||
Gain (loss) on hedges reclassified to income, cash flow hedge | 49 | (10) | (1) |
Foreign exchange contracts | |||
Derivative [Line Items] | |||
Gain (loss) on derivative recognized in OCI, cash flow hedge | (22) | 43 | (12) |
Gain (loss) on derivative recognized in OCI, net investment hedge | (250) | 30 | 81 |
Foreign exchange contracts | Net interest revenue | |||
Derivative [Line Items] | |||
Gain (loss) on hedges reclassified to income, cash flow hedge | 23 | 27 | 27 |
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 |
Offsetting Arrangements - Narra
Offsetting Arrangements - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Offsetting [Abstract] | ||
Fair Value of securities received as collateral that can be resold or repledged | $ 6,480,000 | $ 10,090,000 |
Fair Value of securities received as collateral that have been resold or repledged | $ 3,880,000 | $ 5,720 |
Offsetting Arrangements - Asset
Offsetting Arrangements - Assets With Offsetting Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | $ 25,944 | $ 15,148 |
Derivatives, Gross Amounts Offset in Statement of Condition | (20,140) | (10,395) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 5,804 | 4,753 |
Derivatives, Net Amount | 4,699 | 4,068 |
Derivatives, Cash collateral and securities netting, cash offset | (5,869) | (2,310) |
Derivatives, Cash collateral and securities netting, Cash and Securities Received | (1,105) | (685) |
Derivatives, Cash collateral and securities netting, Net Amount | (6,974) | (2,995) |
Resale agreements and securities borrowing, Gross Amounts of Recognized Assets | 174,461 | 179,989 |
Resale agreements and securities borrowing, Gross Amounts Offset in Statement of Condition | 153,025 | 159,978 |
Resale agreements and securities borrowing, Net Amounts of Assets Presented in Statement of Condition | 21,436 | 20,011 |
Resale agreements and securities borrowing, Cash and Securities Received | (20,568) | (19,572) |
Resale agreements and securities borrowing, Net Amount | 868 | 439 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Assets | 200,405 | 195,137 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | (173,165) | (170,373) |
Total derivatives and other financial instruments, Net Amounts of Assets Presented in Statement of Condition | 27,240 | 24,764 |
Total derivatives and other financial instruments, Cash and Securities Received | (21,673) | (20,257) |
Total derivatives and other financial instruments, Net Amount | 5,567 | 4,507 |
Securities purchased under resale agreements | 3,106 | 1,487 |
Cash collateral provided for securities borrowing | 18,330 | 18,520 |
Foreign exchange contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 25,943 | 15,140 |
Derivatives, Gross Amounts Offset in Statement of Condition | (14,271) | (8,081) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 11,672 | 7,059 |
Derivatives, Net Amount | 11,672 | 7,059 |
Interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 1 | 8 |
Derivatives, Gross Amounts Offset in Statement of Condition | 0 | (4) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 1 | 4 |
Derivatives, Net Amount | $ 1 | $ 4 |
Offsetting Arrangements - Liabi
Offsetting Arrangements - Liabilities With Offsetting Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | $ 26,126 | $ 15,381 |
Derivatives, Gross amounts offset in statement of condition | (15,558) | (8,922) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 10,568 | 6,459 |
Derivative, Net Amount | 8,836 | 5,902 |
Derivative liability, collateral, cash offset | (1,287) | (837) |
Derivatives, Cash and collateral securities netting, Cash and Securities Provided | (1,732) | (557) |
Derivatives, Cash and collateral securities netting, Net | (3,019) | (1,394) |
Resale agreements and securities lending, Gross Amounts of Recognized Liabilities(1)(2) | 165,793 | 171,853 |
Resale agreements and securities lending, Gross Amounts Offset in Statement of Condition(3) | (153,025) | (159,977) |
Resale agreements and securities lending, Net Amounts of Liabilities Presented in Statement of Condition | 12,768 | 11,876 |
Resale agreements and securities lending, Cash and Securities Provided | (12,448) | (10,793) |
Resale agreements and securities lending, Net Amount | 320 | 1,083 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Liabilities | 191,919 | 187,234 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | (168,583) | (168,899) |
Total derivatives and other financial instruments, Net Amounts of Liabilities Presented in Statement of Condition | 23,336 | 18,335 |
Total derivatives and other financial instruments, Cash and Securities Provided | (14,180) | (11,350) |
Total derivatives and other financial instruments, Net Amount | 9,156 | 6,985 |
Securities sold under repurchase agreements | 3,413 | 1,102 |
Foreign exchange contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 25,927 | 15,150 |
Derivatives, Gross amounts offset in statement of condition | (14,271) | (8,081) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 11,656 | 7,069 |
Derivative, Net Amount | 11,656 | 7,069 |
Interest rate contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 42 | 49 |
Derivatives, Gross amounts offset in statement of condition | 0 | (4) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 42 | 45 |
Derivative, Net Amount | 42 | 45 |
Other derivative contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 157 | 182 |
Derivatives, Gross amounts offset in statement of condition | 0 | 0 |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 157 | 182 |
Derivative, Net Amount | 157 | 182 |
Accrued expenses and other liabilities | ||
Offsetting Liabilities [Line Items] | ||
Cash collateral received in connection to securities finance activities | $ 9,360 | $ 10,770 |
Offsetting Arrangements - Repo,
Offsetting Arrangements - Repo, Sec Lending Transactions Maturity By Category (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | $ 152,140 | $ 156,465 |
Securities lending transactions | 13,653 | 15,388 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 165,793 | 171,853 |
U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 152,140 | 156,465 |
Securities lending transactions | 0 | 15 |
Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 110 | 354 |
Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 8,790 | 7,519 |
Other | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 4,753 | 7,500 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 152,140 | 156,465 |
Securities lending transactions | 12,441 | 15,258 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 164,581 | 171,723 |
Overnight and Continuous | U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 152,140 | 156,465 |
Securities lending transactions | 0 | 15 |
Overnight and Continuous | Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 110 | 354 |
Overnight and Continuous | Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 7,578 | 7,389 |
Overnight and Continuous | Other | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 4,753 | 7,500 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending transactions | 56 | 0 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 56 | 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 | 56 | 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 | 1,156 | 130 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 1,156 | 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 | 1,156 | 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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded credit facilities | $ 34,213 | $ 29,697 |
Indemnified securities financing | 440,875 | 367,901 |
Standby letters of credit | $ 3,330 | $ 3,324 |
Unfunded commitments to extend credit, short term | 73.00% | |
Term of unfunded commitment | 1 year |
Commitments and Guarantees - Sc
Commitments and Guarantees - Schedule Of Repurchase Agreements (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Fair value of indemnified securities financing | $ 440,875 | $ 367,901 |
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing | 463,273 | 385,428 |
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements | 54,432 | 45,658 |
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements | $ 58,092 | $ 48,887 |
Commitments and Guarantees - Na
Commitments and Guarantees - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Cash collateral provided for securities lending | $ 18,330 | $ 18,520 |
Accrued expenses and other liabilities | ||
Loss Contingencies [Line Items] | ||
Cash collateral received in connection to securities finance activities | $ 9,360 | $ 10,770 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | |||||
Jun. 30, 2019 | Jan. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||||||
Accrual of loss contingency | $ 144 | |||||
Estimate of possible loss | 40 | |||||
Payments for settlements | $ 48.8 | |||||
Unrecognized tax benefits | 308 | $ 149 | $ 108 | $ 94 | ||
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 | $ 370 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||
Variable interest entity, other short-term borrowings | $ 620 | $ 820 |
Weighted average life of trusts | 2 years 8 months 12 days | 3 years |
Total standby bond purchase agreement committed to trusts | $ 620 | |
Assets | 314,706 | $ 245,610 |
Liabilities | 288,506 | 221,179 |
VIE - primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets | 17 | 21 |
Liabilities | 4 | 5 |
Potential maximum loss exposure of unconsolidated funds | 13 | 15 |
VIE - not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Potential maximum loss exposure of unconsolidated funds | 22 | 21 |
State and political subdivisions, securities in trusts | ||
Variable Interest Entity [Line Items] | ||
Investment securities related to state and political subdivisions | $ 700 | $ 940 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Apr. 30, 2016 | May 31, 2015 | Feb. 28, 2014 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 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 - Preferre
Shareholders' Equity - Preferred Stock (Details) - USD ($) | Jan. 14, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 15, 2020 | Sep. 30, 2019 | Apr. 30, 2016 | May 31, 2015 | Feb. 28, 2014 |
Class of Stock [Line Items] | ||||||||||||
Preferred stock cash dividend | $ 152,000,000 | $ 210,000,000 | $ 188,000,000 | |||||||||
Series C Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Redemption price | $ 500,000,000 | |||||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Preferred stock, shares outstanding (in shares) | 5,000 | |||||||||||
Preferred dividends declared (USD per share) | $ 1,313 | $ 5,250 | ||||||||||
Preferred stock cash dividend | $ 6,000,000 | $ 26,000,000 | ||||||||||
Series C Preferred Stock, Depository Share | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Liquidation preference per share (USD per share) | $ 25 | |||||||||||
Premium from difference between redemption value and net carrying value | $ 9,000,000 | |||||||||||
Premium EPS impact (in USD per share) | $ (0.03) | |||||||||||
Preferred dividends declared (USD per share) | $ 0.33 | $ 1.32 | ||||||||||
Series D Preferred Stock, Depository Share | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Liquidation preference per share (USD per share) | $ 25 | |||||||||||
Preferred dividends declared (USD per share) | $ 1.48 | 1.48 | ||||||||||
Series D Preferred Stock, Depository Share | Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 0.37 | |||||||||||
Series D Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Preferred stock, shares outstanding (in shares) | 7,500 | |||||||||||
Preferred dividends declared (USD per share) | $ 5,900 | $ 5,900 | ||||||||||
Preferred stock cash dividend | $ 44,000,000 | $ 44,000,000 | ||||||||||
Series D Preferred Stock | Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | 1,475 | |||||||||||
Preferred stock cash dividend | $ 11,000,000 | |||||||||||
Series F Preferred Stock, Depository Share | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||||||||
Preferred dividends declared (USD per share) | $ 62.23 | $ 52.50 | ||||||||||
Series F Preferred Stock, Depository Share | Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||||||||
Preferred dividends declared (USD per share) | 9.53 | |||||||||||
Preferred stock cash dividend | $ 9.5338 | |||||||||||
Series F Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Preferred stock, shares outstanding (in shares) | 7,500 | |||||||||||
Preferred dividends declared (USD per share) | $ 6,223 | $ 5,250 | ||||||||||
Preferred stock cash dividend | $ 47,000,000 | $ 40,000,000 | ||||||||||
Series F Preferred Stock | Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Redemption price | $ 500,000,000 | |||||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Preferred shares to be redeemed (in shares) | 5,000 | |||||||||||
Preferred stock, shares outstanding (in shares) | 7,500 | |||||||||||
Preferred dividends declared (USD per share) | 953 | |||||||||||
Preferred stock cash dividend | $ 953.38 | 7,000,000 | ||||||||||
Series G Preferred Stock, Depository Share | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Liquidation preference per share (USD per share) | $ 25 | |||||||||||
Preferred dividends declared (USD per share) | $ 1.32 | $ 1.32 | ||||||||||
Series G Preferred Stock, Depository Share | Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | 0.33 | |||||||||||
Series G Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Preferred stock, shares outstanding (in shares) | 5,000 | |||||||||||
Preferred dividends declared (USD per share) | $ 5,352 | $ 5,352 | ||||||||||
Preferred stock cash dividend | $ 27,000,000 | $ 27,000,000 | ||||||||||
Series G Preferred Stock | Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred dividends declared (USD per share) | $ 1,338 | |||||||||||
Preferred stock cash dividend | $ 7,000,000 | |||||||||||
Series H Preferred Stock, Depository Share | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||||||||
Preferred dividends declared (USD per share) | $ 56.25 | $ 56.25 | ||||||||||
Series H Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||||
Preferred stock, shares outstanding (in shares) | 5,000 | |||||||||||
Preferred dividends declared (USD per share) | $ 5,625 | $ 5,625 | ||||||||||
Preferred stock cash dividend | $ 28,000,000 | $ 28,000,000 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Dividends Payable [Line Items] | |||
Preferred stock cash dividend | $ 152 | $ 210 | $ 188 |
Series C Preferred Stock | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 1,313 | $ 5,250 | |
Preferred stock cash dividend | $ 6 | $ 26 | |
Series C Preferred Stock, Depository Share | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 0.33 | $ 1.32 | |
Series D Preferred Stock | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 5,900 | $ 5,900 | |
Preferred stock cash dividend | $ 44 | $ 44 | |
Series D Preferred Stock, Depository Share | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 1.48 | $ 1.48 | |
Series E Preferred Stock | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 0 | $ 6,000 | |
Preferred stock cash dividend | $ 0 | $ 45 | |
Series E Preferred Stock, Depository Share | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 0 | $ 1.52 | |
Series F Preferred Stock | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 6,223 | $ 5,250 | |
Preferred stock cash dividend | $ 47 | $ 40 | |
Series F Preferred Stock, Depository Share | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 62.23 | $ 52.50 | |
Series G Preferred Stock | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 5,352 | $ 5,352 | |
Preferred stock cash dividend | $ 27 | $ 27 | |
Series G Preferred Stock, Depository Share | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 1.32 | $ 1.32 | |
Series H Preferred Stock | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 5,625 | $ 5,625 | |
Preferred stock cash dividend | $ 28 | $ 28 | |
Series H Preferred Stock, Depository Share | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 56.25 | $ 56.25 |
Shareholders' Equity - Common S
Shareholders' Equity - Common Stock (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Amount of common stock authorized for repurchase | $ 2,000,000,000 | |||||
Common stock repurchased | $ 500,000,000 | |||||
Subsequent Event | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Amount of common stock authorized for repurchase | $ 475,000,000 | |||||
2019 Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock repurchased | $ 500,000,000 | $ 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 |
Shareholders' Equity - Schedu_3
Shareholders' Equity - Schedule of Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Shares Acquired (in shares) | 6.5 | |||
Average Cost per Share (USD per share) | $ 77.35 | |||
Total Acquired | $ 500 | |||
Cash dividends declared (in USD per share) | $ 2.08 | $ 1.98 | $ 1.78 | |
Total (In millions) | $ 734 | $ 728 | $ 665 | |
2019 Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares Acquired (in shares) | 6.5 | |||
Average Cost per Share (USD per share) | $ 77.35 | |||
Total Acquired | $ 500 | $ 500 |
Shareholders' Equity - Schedu_4
Shareholders' Equity - Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | |||
Net unrealized gains (losses) on cash flow hedges | $ 57 | $ (70) | $ (89) |
Net unrealized gains (losses) on available-for-sale securities portfolio | 936 | 426 | (193) |
Net unrealized gains (losses) related to reclassified available-for-sale securities | (55) | 19 | 58 |
Net unrealized gains (losses) on available-for-sale securities | 881 | 445 | (135) |
Net unrealized (losses) on available-for-sale securities designated in fair value hedges | (33) | (36) | (40) |
Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries | (204) | 46 | 16 |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit | (2) | (2) | (2) |
Net unrealized (losses) on retirement plans | (178) | (187) | (143) |
Foreign currency translation | (334) | (1,072) | (963) |
Total | $ 187 | $ (876) | $ (1,356) |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 24,431 | $ 24,737 | $ 22,270 | |
Other comprehensive income (loss) before reclassifications | 1,002 | 569 | ||
Reclassification of certain tax effects | (84) | |||
Amounts reclassified into (out of) earnings | 61 | (5) | ||
Other comprehensive income (loss) | 480 | |||
Other comprehensive income (loss) | 1,063 | 564 | (347) | |
Ending balance | 26,200 | 24,431 | 24,737 | |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (876) | (1,356) | (1,009) | |
Reclassification of certain tax effects | [1] | (84) | ||
Other comprehensive income (loss) | 1,063 | 564 | (347) | |
Ending balance | 187 | (876) | (1,356) | |
Net Unrealized Gains (Losses) on Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (70) | (89) | ||
Other comprehensive income (loss) before reclassifications | 75 | 13 | ||
Reclassification of certain tax effects | (6) | |||
Amounts reclassified into (out of) earnings | 52 | 12 | ||
Other comprehensive income (loss) | 19 | |||
Other comprehensive income (loss) | 127 | |||
Ending balance | 57 | (70) | (89) | |
Net Unrealized Gains (Losses) on Available-for-Sale Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 409 | (175) | ||
Other comprehensive income (loss) before reclassifications | 439 | 563 | ||
Reclassification of certain tax effects | 21 | |||
Amounts reclassified into (out of) earnings | 0 | 0 | ||
Other comprehensive income (loss) | 584 | |||
Other comprehensive income (loss) | 439 | |||
Ending balance | 848 | 409 | (175) | |
Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 46 | 16 | ||
Other comprehensive income (loss) before reclassifications | (250) | 33 | ||
Reclassification of certain tax effects | (3) | |||
Amounts reclassified into (out of) earnings | 0 | 0 | ||
Other comprehensive income (loss) | 30 | |||
Other comprehensive income (loss) | (250) | |||
Ending balance | (204) | 46 | 16 | |
Other-Than-Temporary Impairment on Held-to-Maturity Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (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 | |||
Other comprehensive income (loss) | 0 | |||
Ending balance | (2) | (2) | (2) | |
Net Unrealized Losses on Retirement Plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (187) | (143) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Reclassification of certain tax effects | (28) | |||
Amounts reclassified into (out of) earnings | 9 | (16) | ||
Other comprehensive income (loss) | (44) | |||
Other comprehensive income (loss) | 9 | |||
Ending balance | (178) | (187) | (143) | |
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,072) | (963) | ||
Other comprehensive income (loss) before reclassifications | 738 | (42) | ||
Reclassification of certain tax effects | (67) | |||
Amounts reclassified into (out of) earnings | 0 | 0 | ||
Other comprehensive income (loss) | (109) | |||
Other comprehensive income (loss) | 738 | |||
Ending balance | $ (334) | $ (1,072) | $ (963) | |
[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 ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||
Net interest income | $ 2,200,000,000 | $ 2,566,000,000 | $ 2,671,000,000 |
Compensation and employee benefits expenses | 4,450,000,000 | 4,541,000,000 | 4,780,000,000 |
Net income | 2,420,000,000 | 2,242,000,000 | $ 2,593,000,000 |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, taxes | 0 | 0 | |
Gain (loss) from cash flow hedge reclassified from accumulated other comprehensive income, taxes | 20,000,000 | 5,000,000 | |
Amortization of actuarial losses, taxes | 3,000,000 | (8,000,000) | |
Reclassification out of Accumulated Other Comprehensive Income | |||
Class of Stock [Line Items] | |||
Net income | 61,000,000 | (5,000,000) | |
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) | |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | |||
Class of Stock [Line Items] | |||
Net interest income | 52,000,000 | 12,000,000 | |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Actuarial Losses | |||
Class of Stock [Line Items] | |||
Compensation and employee benefits expenses | $ 9,000,000 | $ (16,000,000) |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Retained earnings | $ 23,442 | $ 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 |
Tier 1 leverage capital ratio, minimum | 0.040 | 0.040 |
Countercyclical capital buffer | 0 | |
Leverage ratio minimum | 0.05 | |
Basel III Advanced Approaches | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,709 | $ 10,636 |
Retained earnings | 23,442 | 21,918 |
Accumulated other comprehensive income (loss) | 187 | (870) |
Treasury stock, at cost | (10,609) | (10,209) |
Total | 23,729 | 21,475 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (9,019) | (9,112) |
Other adjustments(1) | (333) | (150) |
Common equity tier 1 capital | 14,377 | 12,213 |
Preferred stock | 2,471 | 2,962 |
Tier 1 capital | 16,848 | 15,175 |
Qualifying subordinated long-term debt | 961 | 1,095 |
Allowance for credit losses | 1 | 5 |
Total capital | 17,810 | 16,275 |
Credit risk | 63,367 | 54,763 |
Operational risk | 44,150 | 47,963 |
Market risk | 2,188 | 1,638 |
Total risk-weighted assets | 109,705 | 104,364 |
Adjusted quarterly average assets | $ 263,490 | $ 219,624 |
Common equity tier 1 capital | 13.10% | 11.70% |
Tier 1 capital | 0.154 | 0.145 |
Total capital | 0.162 | 0.156 |
Tier 1 leverage capital ratio, actual | 0.064 | 0.069 |
Basel III Standardized Approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,709 | $ 10,636 |
Retained earnings | 23,442 | 21,918 |
Accumulated other comprehensive income (loss) | 187 | (870) |
Treasury stock, at cost | (10,609) | (10,209) |
Total | 23,729 | 21,475 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (9,019) | (9,112) |
Other adjustments(1) | (333) | (150) |
Common equity tier 1 capital | 14,377 | 12,213 |
Preferred stock | 2,471 | 2,962 |
Tier 1 capital | 16,848 | 15,175 |
Qualifying subordinated long-term debt | 961 | 1,095 |
Allowance for credit losses | 148 | 90 |
Total capital | 17,957 | 16,360 |
Credit risk | 114,892 | 102,367 |
Market risk | 2,188 | 1,638 |
Total risk-weighted assets | 117,080 | 104,005 |
Adjusted quarterly average assets | $ 263,490 | $ 219,624 |
Common equity tier 1 capital | 12.30% | 11.70% |
Tier 1 capital | 0.144 | 0.146 |
Total capital | 0.153 | 0.157 |
Tier 1 leverage capital ratio, actual | 0.064 | 0.069 |
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 | 12,939 | 13,218 |
Accumulated other comprehensive income (loss) | 371 | (654) |
Treasury stock, at cost | 0 | 0 |
Total | 26,203 | 25,457 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (8,745) | (8,839) |
Other adjustments(1) | (152) | (1) |
Common equity tier 1 capital | 17,306 | 16,617 |
Preferred stock | 0 | 0 |
Tier 1 capital | 17,306 | 16,617 |
Qualifying subordinated long-term debt | 966 | 1,099 |
Allowance for credit losses | 10 | 3 |
Total capital | 18,282 | 17,719 |
Credit risk | 58,960 | 51,610 |
Operational risk | 43,663 | 44,138 |
Market risk | 2,188 | 1,638 |
Total risk-weighted assets | 104,811 | 97,386 |
Adjusted quarterly average assets | $ 260,489 | $ 216,397 |
Common equity tier 1 capital | 16.50% | 17.10% |
Tier 1 capital | 0.165 | 0.171 |
Total capital | 0.174 | 0.182 |
Tier 1 leverage capital ratio, actual | 0.066 | 0.077 |
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 | 12,939 | 13,218 |
Accumulated other comprehensive income (loss) | 371 | (654) |
Treasury stock, at cost | 0 | 0 |
Total | 26,203 | 25,457 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (8,745) | (8,839) |
Other adjustments(1) | (152) | (1) |
Common equity tier 1 capital | 17,306 | 16,617 |
Preferred stock | 0 | 0 |
Tier 1 capital | 17,306 | 16,617 |
Qualifying subordinated long-term debt | 966 | 1,099 |
Allowance for credit losses | 148 | 90 |
Total capital | 18,420 | 17,806 |
Credit risk | 110,797 | 98,979 |
Market risk | 2,188 | 1,638 |
Total risk-weighted assets | 112,985 | 100,617 |
Adjusted quarterly average assets | $ 260,489 | $ 216,397 |
Common equity tier 1 capital | 15.30% | 16.50% |
Tier 1 capital | 0.153 | 0.165 |
Total capital | 0.163 | 0.177 |
Tier 1 leverage capital ratio, actual | 0.066 | 0.077 |
Net Interest Income - Component
Net Interest Income - Components of Interest Revenue and Interest Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment securities: | |||
Interest-bearing deposits with banks | $ 76 | $ 416 | $ 387 |
U.S. Treasury and federal agencies | 1,174 | 1,443 | 1,178 |
State and political subdivisions | 37 | 49 | 143 |
Other investments | 366 | 505 | 560 |
Investment securities purchased under money market liquidity facility | 117 | 0 | 0 |
Total Investment securities | 1,694 | 1,997 | 1,881 |
Securities purchased under resale agreements | 126 | 364 | 335 |
Loans and leases | 624 | 769 | 687 |
Other interest-earning assets | 55 | 395 | 372 |
Total interest income | 2,575 | 3,941 | 3,662 |
Interest expense: | |||
Interest-bearing deposits | (117) | 663 | 363 |
Short term borrowings under money market liquidity facility | 101 | 0 | 0 |
Securities sold under repurchase agreements | 4 | 31 | 13 |
Other short-term borrowings | 17 | 21 | 17 |
Long-term debt | 312 | 414 | 389 |
Other interest-bearing liabilities | 58 | 246 | 209 |
Total interest expense | 375 | 1,375 | 991 |
Net interest income | $ 2,200 | $ 2,566 | $ 2,671 |
Equity-Based Compensation - Nar
Equity-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | 31 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | May 31, 2017 | |
Deferred Stock Awards And Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated share-based compensation | $ 240,000,000 | $ 235,000,000 | $ 262,000,000 | ||
Accelerated recognition due to restructuring plan | 29,000,000 | 4,000,000 | 45,000,000 | ||
Deferred Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Costs not yet recognized | 199,000,000 | ||||
Fair value for vested in period | $ 210,000,000 | 220,000,000 | 230,000,000 | ||
Period of recognition for unrecognized share-based compensation | 2 years 3 months 18 days | ||||
Deferred Stock Awards | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Deferred Stock Awards | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Costs not yet recognized | $ 26,000,000 | ||||
Fair value for vested in period | $ 30,000,000 | $ 22,000,000 | $ 32,000,000 | ||
Period of recognition for unrecognized share-based compensation | 1 year 7 months 6 days | ||||
Performance Shares | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Stock Appreciation Rights (SARs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercised (in shares) | 0 | 0 | 0 | ||
Costs not yet recognized | $ 0 | ||||
2017 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for issuance (in shares) | 8,300,000 | ||||
Additional shares authorized (in shares) | 20,500,000 | ||||
Shares awarded, but not delivered, available for reissue (in shares) | 1,700,000 | ||||
Shares available for grant (in shares) | 19,200,000 | ||||
2006 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for issuance (in shares) | 28,500,000 |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Shares Awarded (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
2006 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued during period (in shares) | 68.9 | 68.9 | 68.9 |
2017 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued during period (in shares) | 11.3 | 7.6 | 3.9 |
Equity-Based Compensation - Def
Equity-Based Compensation - Deferred Stock Awards (Details) - Deferred Stock Awards - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | ||
Beginning of Period (in shares) | 5,834 | 5,975 |
Granted (in shares) | 2,926 | 3,168 |
Vested (in shares) | (2,938) | (3,089) |
Forfeited (in shares) | (136) | (220) |
End of Period (in shares) | 5,686 | 5,834 |
Weighted-Average Grant Date Fair Value | ||
Beginning of Period (in USD per share) | $ 74.33 | $ 77.07 |
Granted (in USD per share) | 63.56 | 66.68 |
Vested (in USD per share) | 71.33 | 71.20 |
Forfeited (in USD per share) | 71.79 | 75.85 |
End of Period (in USD per share) | $ 69.70 | $ 74.33 |
Equity-Based Compensation - Per
Equity-Based Compensation - Performance Awards (Details) - Performance Shares - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | ||
Beginning of Period (in shares) | 2,139 | 2,157 |
Granted (in shares) | 811 | 510 |
Forfeited (in shares) | (23) | (96) |
Paid Out (in shares) | (410) | (432) |
End of Period (in shares) | 2,517 | 2,139 |
Weighted-Average Grant Date Fair Value | ||
Beginning of Period (in USD per share) | $ 71.82 | $ 69.36 |
Granted (in USD per share) | 62.58 | 66.04 |
Forfeited (in USD per share) | 94.91 | 74.82 |
Paid Out (in USD per share) | 73.10 | 51.01 |
End of Period (in USD per share) | $ 68.42 | $ 71.82 |
Employee Benefits (Details)
Employee Benefits (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)employee | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit expense | $ 25 | $ 8 | $ 11 |
Contributions by employer | $ 168 | 167 | $ 170 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of eligible employees for pension plan (in employee) | employee | 0 | ||
Defined benefit obligation | $ 1,530 | 1,370 | |
Defined benefit overfunded (underfunded) status | 15 | (10) | |
Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit obligation | 69 | 10 | |
Defined benefit overfunded (underfunded) status | (69) | (10) | |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit obligation | 4 | 88 | |
Defined benefit overfunded (underfunded) status | $ (4) | $ (88) |
Occupancy Expense and Informa_3
Occupancy Expense and Information Systems and Communications Expense - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Lease liabilities | $ 994 | |||
Depreciation and amortization | 858 | $ 842 | $ 599 | |
Repositioning charge | 51 | |||
Impairment, right of use assets | 46 | |||
One-time repairs | 5 | |||
Finance lease right-of-use asset | 55 | 78 | ||
Finance lease liability | 103 | 136 | ||
Finance lease, accumulated amortization | 75 | |||
Interest on lease liabilities | 9 | 11 | ||
Right-of-use assets | $ 720 | $ 858 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilities | |||
Lease liabilities | $ 891 | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | |||
Operating leases not yet commenced | $ 462 | |||
Accounting Standards Update 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Right-of-use assets | $ 910 | |||
Lease liabilities | $ 1,060 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating leases not yet commenced, lease terms | 10 years | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating leases not yet commenced, lease terms | 15 years |
Occupancy Expense and Informa_4
Occupancy Expense and Information Systems and Communications Expense - Summary of Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finance lease: | ||
Amortization of right-of-use assets | $ 20 | $ 21 |
Interest on lease liabilities | 9 | 11 |
Total finance lease expense | 29 | 32 |
Sublease income | (11) | (9) |
Net finance lease expense | 18 | 23 |
Operating lease: | ||
Operating lease expense | 169 | 179 |
Sublease income | (16) | (6) |
Net operating lease expense | 153 | 173 |
Net lease expense | 171 | 196 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from finance leases | 9 | 11 |
Operating cash flows from operating leases | 192 | 201 |
Financing cash flows from finance leases | 33 | 54 |
Right-of-use assets obtained in exchange for new lease obligations: | ||
Operating leases | 38 | 120 |
Finance leases | $ 0 | $ 0 |
Occupancy Expense and Informa_5
Occupancy Expense and Information Systems and Communications Expense - Summary of Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2021 | $ 186 | |
2022 | 167 | |
2023 | 147 | |
2024 | 112 | |
2025 | 93 | |
Thereafter | 275 | |
Total future minimum lease payments | 980 | |
Less imputed interest | (89) | |
Total | 891 | |
Finance Leases | ||
2021 | 41 | |
2022 | 41 | |
2023 | 31 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total future minimum lease payments | 113 | |
Less imputed interest | (10) | |
Total | 103 | $ 136 |
2021 | 227 | |
2022 | 208 | |
2023 | 178 | |
2024 | 112 | |
2025 | 93 | |
Thereafter | 275 | |
Total future minimum lease payments | 1,093 | |
Less imputed interest | (99) | |
Total | $ 994 |
Occupancy Expense and Informa_6
Occupancy Expense and Information Systems and Communications Expense - Summary of Other Lease Information (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Weighted-average remaining lease term (in years): | ||
Finance leases | 2 years 8 months 12 days | 3 years 9 months 18 days |
Operating leases | 7 years 1 month 6 days | 7 years 7 months 6 days |
Weighted-average discount rate: | ||
Finance leases | 7.00% | 7.00% |
Operating leases | 3.00% | 3.00% |
Expenses - Schedule of Expenses
Expenses - Schedule of Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Expenses [Abstract] | |||
Professional services | $ 364 | $ 321 | $ 357 |
Sales advertising public relations | 77 | 114 | 115 |
Regulatory fees and assessments | 61 | 73 | 91 |
Securities processing | 41 | 75 | 52 |
Donations | 20 | 51 | 12 |
Bank operations | 18 | 43 | 70 |
Insurance | 14 | 19 | 18 |
Other | 370 | 566 | 461 |
Total other expenses | $ 965 | $ 1,262 | $ 1,176 |
Expenses - Narrative (Details)
Expenses - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Net repositioning charges | $ 133 | $ 110 | $ 300 |
Reduction of real estate footprint | 13.00% | ||
Charles River Development | |||
Restructuring Cost and Reserve [Line Items] | |||
Acquisitions costs | $ 54 | 79 | 31 |
Compensation and Employee Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Net repositioning charges | 82 | 98 | 259 |
Occupancy Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Net repositioning charges | $ 51 | $ 12 | $ 41 |
Expenses - Restructuring Reserv
Expenses - Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 198 | $ 341 | $ 201 |
Accruals | 133 | 110 | 300 |
Payments and Other Adjustments | (131) | (251) | (153) |
Ending balance | 196 | 198 | 341 |
Employee Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 190 | 303 | 166 |
Accruals | 82 | 98 | 259 |
Payments and Other Adjustments | (78) | (209) | (115) |
Ending balance | 190 | 190 | 303 |
Real Estate Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 7 | 37 | 32 |
Accruals | 51 | 12 | 41 |
Payments and Other Adjustments | (52) | (42) | (36) |
Ending balance | 6 | 7 | 37 |
Asset and Other Write-offs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1 | 1 | 3 |
Accruals | 0 | 0 | 0 |
Payments and Other Adjustments | (1) | 0 | (2) |
Ending balance | 0 | 1 | 1 |
State Street Beacon | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | (4) | (2) | (7) |
State Street Beacon | Employee Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | (4) | (2) | (7) |
State Street Beacon | Real Estate Actions | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | 0 | 0 | 0 |
State Street Beacon | Asset and Other Write-offs | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | $ 0 | $ 0 | $ 0 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 241 | $ 157 | $ 122 |
State | 122 | 86 | 148 |
Non-U.S. | 310 | 357 | 374 |
Total current expense | 673 | 600 | 644 |
Deferred: | |||
Federal | (168) | (6) | (128) |
State | 5 | 33 | (22) |
Non-U.S. | (31) | (157) | 14 |
Total deferred expense (benefit) | (194) | (130) | (136) |
Total income tax expense (benefit) | $ 479 | $ 470 | $ 508 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of the U.S. Statutory Income Tax Rate to the Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax rate | 21.00% | 21.00% | 21.00% |
State taxes, net of federal benefit | 3.80% | 3.40% | 3.10% |
Tax-exempt income | (1.30%) | (1.50%) | (2.00%) |
Business tax credits | (5.10%) | (5.40%) | (4.10%) |
Foreign tax differential | (0.80%) | (0.10%) | (0.60%) |
Foreign legal entity restructuring | 0.00% | (4.30%) | 0.00% |
Foreign tax credit (benefits)/ limitations | (0.90%) | 2.20% | 0.20% |
Deferred tax revaluation | 0.00% | 0.00% | (1.00%) |
Litigation expense | 0.00% | 1.60% | 0.30% |
Other, net | (0.20%) | 0.40% | (0.60%) |
Effective tax rate | 16.50% | 17.30% | 16.30% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Tax benefit attributable to enactment of TCJA | $ 32 | |||
GILTI, percent | 0.20% | 0.30% | 0.20% | |
Undistributed indefinitely reinvested earnings of certain foreign subsidiaries | $ 5,800 | |||
Unrecognized tax benefits | 308 | $ 149 | $ 108 | $ 94 |
Unrecognized tax benefits that would impact effective tax rate | 294 | 140 | 100 | |
Maximum estimated income tax expense change in unrecognized tax benefit in the next 12 months | 104 | |||
Interest expense for tax examination | 6 | 5 | 1 | |
Interest accrued for tax examination | $ 14 | $ 10 | $ 8 |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Deferred Tax Liabilities and Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Other amortizable assets | $ 385 | $ 394 |
Tax credit carryforwards | 564 | 387 |
Lease obligations | 243 | 254 |
Deferred compensation | 110 | 120 |
Restructuring charges and other reserves | 129 | 104 |
NOL and other carryforwards | 101 | 73 |
Pension plan | 56 | 66 |
Foreign currency translation | 3 | 57 |
Total deferred tax assets | 1,591 | 1,455 |
Valuation allowance for deferred tax assets | (295) | (330) |
Deferred tax assets, net of valuation allowance | 1,296 | 1,125 |
Deferred tax liabilities: | ||
Fixed and intangible assets | 765 | 763 |
Investment basis differences | 269 | 258 |
Right-of-use Assets | 187 | 223 |
Unrealized gains on investment securities, net | 321 | 86 |
Other | 51 | 32 |
Total deferred tax liabilities | $ 1,593 | $ 1,362 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset Valuation Allowances (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Valuation Allowance [Line Items] | ||
Other amortizable assets | $ 385 | $ 394 |
Tax credits | 564 | |
NOLs - Non-U.S. | 65 | |
Other carryforwards | 19 | |
NOLs - State | 17 | |
Total deferred tax assets | 1,591 | 1,455 |
Valuation Allowance | (295) | $ (330) |
Other amortizable assets | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance | (233) | |
Tax credits | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance | 0 | |
NOLs - Non-U.S. | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance | (40) | |
Other carryforwards | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance | (5) | |
NOLs - State | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance | $ (17) |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 149 | $ 108 | $ 94 |
Decrease related to agreements with tax authorities | 0 | (17) | (40) |
Increase related to tax positions taken during current year | 47 | 13 | 12 |
Increase related to tax positions taken during prior years | 137 | 49 | 44 |
Decreases related to a lapse of the applicable statute of limitations | (25) | (4) | (2) |
Ending balance | $ 308 | $ 149 | $ 108 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Net income | $ 2,420 | $ 2,242 | $ 2,593 |
Preferred stock dividends | (162) | (232) | (188) |
Dividends and undistributed earnings allocated to participating securities | (1) | (1) | (1) |
Net income available to common shareholders | $ 2,257 | $ 2,009 | $ 2,404 |
Basic average common shares | 352,865 | 369,911 | 371,983 |
Effect of dilutive securities: common stock options and common stock awards (in shares) | 4,241 | 3,755 | 4,493 |
Diluted average common shares | 357,106 | 373,666 | 376,476 |
Anti-dilutive securities (in shares) | 1,066 | 2,052 | 1,011 |
Earnings per common share: | |||
Basic (in USD per share) | $ 6.40 | $ 5.43 | $ 6.46 |
Diluted (in USD per share) | $ 6.32 | $ 5.38 | $ 6.39 |
Line of Business Information -
Line of Business Information - Narrative (Details) - 12 months ended Dec. 31, 2020 | line_of_business | segment | Total |
Segment Reporting Information [Line Items] | |||
Number of lines of business | 2 | 2 | |
Minimum | Investment Servicing and Management Services | Investment Servicing and Investment Management | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues by segment | 70.00% | ||
Minimum | Processing and Other Services | Investment Servicing and Investment Management | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues by segment | 20.00% | ||
Maximum | Investment Servicing and Management Services | Investment Servicing and Investment Management | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues by segment | 80.00% | ||
Maximum | Processing and Other Services | Investment Servicing and Investment Management | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues by segment | 30.00% |
Line of Business Information _2
Line of Business Information - Components of Other (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net repositioning charges | $ 133 | $ 110 | $ 300 |
Acquisition and restructuring costs | 50 | 77 | 24 |
Total | (2,899) | (2,712) | (3,101) |
Other | |||
Segment Reporting Information [Line Items] | |||
Net repositioning charges | 133 | 110 | 300 |
Acquisition and restructuring costs | 50 | 77 | 24 |
Accrual release | (9) | 0 | 0 |
Legal and related expenses | 0 | 172 | 50 |
Business exit costs | 0 | 0 | 24 |
Total | 174 | 359 | 398 |
Total expenses | $ 174 | $ 359 | $ 398 |
Line of Business Information _3
Line of Business Information - Summary of Line of Business (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Servicing fees | $ 5,167 | $ 5,074 | $ 5,421 |
Management fees | 1,880 | 1,824 | 1,899 |
Foreign exchange trading services | 1,363 | 1,058 | 1,153 |
Securities finance | 356 | 471 | 543 |
Software and processing fees | 733 | 720 | 438 |
Total fee revenue | 9,499 | 9,147 | 9,454 |
Net interest income | 2,200 | 2,566 | 2,671 |
Total other income | 4 | 43 | 6 |
Total revenue | 11,703 | 11,756 | 12,131 |
Provision for credit losses | 88 | 10 | 15 |
Total expenses | 8,716 | 9,034 | 9,015 |
Income before income taxes | $ 2,899 | $ 2,712 | $ 3,101 |
Pre-tax margin | 25.00% | 23.00% | 26.00% |
Average assets (in billions) | $ 269,300 | $ 223,300 | $ 223,400 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Management fees | 1,880 | ||
Foreign exchange trading services | 64 | ||
Securities finance | 14 | ||
Software and processing fees | 27 | ||
Net interest income | (11) | ||
Operating Segments | Investment Servicing | |||
Segment Reporting Information [Line Items] | |||
Servicing fees | 5,167 | 5,074 | 5,429 |
Management fees | 0 | 0 | 0 |
Foreign exchange trading services | 1,299 | 974 | 1,071 |
Securities finance | 342 | 462 | 543 |
Software and processing fees | 706 | 691 | 443 |
Total fee revenue | 7,514 | 7,201 | 7,486 |
Net interest income | 2,211 | 2,590 | 2,691 |
Total other income | 4 | 43 | 6 |
Total revenue | 9,729 | 9,834 | 10,183 |
Provision for credit losses | 88 | 10 | 15 |
Total expenses | 7,071 | 7,140 | 7,081 |
Income before income taxes | $ 2,570 | $ 2,684 | $ 3,087 |
Pre-tax margin | 26.00% | 27.00% | 30.00% |
Average assets (in billions) | $ 266,400 | $ 220,300 | $ 220,200 |
Operating Segments | Investment Management | |||
Segment Reporting Information [Line Items] | |||
Servicing fees | 0 | 0 | 0 |
Management fees | 1,880 | 1,824 | 1,899 |
Foreign exchange trading services | 64 | 84 | 82 |
Securities finance | 14 | 9 | 0 |
Software and processing fees | 27 | 29 | (5) |
Total fee revenue | 1,985 | 1,946 | 1,976 |
Net interest income | (11) | (24) | (20) |
Total other income | 0 | 0 | 0 |
Total revenue | 1,974 | 1,922 | 1,956 |
Provision for credit losses | 0 | 0 | 0 |
Total expenses | 1,471 | 1,535 | 1,544 |
Income before income taxes | $ 503 | $ 387 | $ 412 |
Pre-tax margin | 25.00% | 20.00% | 21.00% |
Average assets (in billions) | $ 2,900 | $ 3,000 | $ 3,200 |
Other | |||
Segment Reporting Information [Line Items] | |||
Servicing fees | 0 | 0 | (8) |
Management fees | 0 | 0 | 0 |
Foreign exchange trading services | 0 | 0 | 0 |
Securities finance | 0 | 0 | 0 |
Software and processing fees | 0 | 0 | 0 |
Total fee revenue | 0 | 0 | (8) |
Net interest income | 0 | 0 | 0 |
Total other income | 0 | 0 | 0 |
Total revenue | 0 | 0 | (8) |
Provision for credit losses | 0 | 0 | 0 |
Total expenses | 174 | 359 | 390 |
Income before income taxes | $ (174) | $ (359) | $ (398) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)line_of_business | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of lines of business | 2 | 2 | |
Accrued Interest and Fees Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables related to contracts with customers | $ 2,680 | $ 2,680 | $ 2,770 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Servicing fees | $ 5,167 | $ 5,074 | $ 5,421 |
Management fees | 1,880 | 1,824 | 1,899 |
Foreign exchange trading services | 1,363 | 1,058 | 1,153 |
Securities finance | 356 | 471 | 543 |
Software and processing fees | 733 | 720 | 438 |
Total fee revenue | 9,499 | 9,147 | 9,454 |
Net interest income | 2,200 | 2,566 | 2,671 |
Total other income | 4 | ||
Total revenue | 11,703 | 11,756 | 12,131 |
Total other income | 4 | 43 | 6 |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Management fees | 1,880 | ||
Foreign exchange trading services | 64 | ||
Securities finance | 14 | ||
Software and processing fees | 27 | ||
Net interest income | (11) | ||
Operating Segments | Investment Servicing | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 6,243 | 6,135 | 6,307 |
All other revenue | 3,486 | 3,699 | 3,876 |
Servicing fees | 5,167 | 5,074 | 5,429 |
Management fees | 0 | 0 | 0 |
Foreign exchange trading services | 1,299 | 974 | 1,071 |
Securities finance | 342 | 462 | 543 |
Software and processing fees | 706 | 691 | 443 |
Total fee revenue | 7,514 | 7,201 | 7,486 |
Net interest income | 2,211 | 2,590 | 2,691 |
Total revenue | 9,729 | 9,834 | 10,183 |
Total other income | 4 | 43 | 6 |
Operating Segments | Investment Servicing | Servicing fees | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 5,167 | 5,074 | 5,429 |
All other revenue | 0 | 0 | 0 |
Servicing fees | 5,167 | 5,074 | 5,429 |
Operating Segments | Investment Servicing | Management fees | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | 0 | 0 | 0 |
Management fees | 0 | 0 | 0 |
Operating Segments | Investment Servicing | Foreign exchange trading services | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 377 | 346 | 361 |
All other revenue | 922 | 628 | 710 |
Foreign exchange trading services | 1,299 | 974 | 1,071 |
Operating Segments | Investment Servicing | Securities finance | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 212 | 259 | 308 |
All other revenue | 130 | 203 | 235 |
Securities finance | 342 | 462 | 543 |
Operating Segments | Investment Servicing | Processing fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 487 | 456 | 209 |
All other revenue | 219 | 235 | 234 |
Software and processing fees | 706 | 691 | 443 |
Operating Segments | Investment Servicing | Total fee revenue | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 6,243 | 6,135 | 6,307 |
All other revenue | 1,271 | 1,066 | 1,179 |
Total fee revenue | 7,514 | 7,201 | 7,486 |
Operating Segments | Investment Servicing | Net interest income | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | 2,211 | 2,590 | 2,691 |
Net interest income | 2,211 | 2,590 | 2,691 |
Operating Segments | Investment Servicing | Total other income | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | 4 | 43 | 6 |
Total other income | 4 | 43 | 6 |
Operating Segments | Investment Management | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 1,944 | 1,908 | 1,981 |
All other revenue | 30 | 14 | (25) |
Servicing fees | 0 | 0 | 0 |
Management fees | 1,880 | 1,824 | 1,899 |
Foreign exchange trading services | 64 | 84 | 82 |
Securities finance | 14 | 9 | 0 |
Software and processing fees | 27 | 29 | (5) |
Total fee revenue | 1,985 | 1,946 | 1,976 |
Net interest income | (11) | (24) | (20) |
Total revenue | 1,974 | 1,922 | 1,956 |
Total other income | 0 | 0 | 0 |
Operating Segments | Investment Management | Servicing fees | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | 0 | 0 | 0 |
Servicing fees | 0 | 0 | 0 |
Operating Segments | Investment Management | Management fees | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 1,880 | 1,824 | 1,899 |
All other revenue | 0 | 0 | 0 |
Management fees | 1,880 | 1,824 | 1,899 |
Operating Segments | Investment Management | Foreign exchange trading services | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 64 | 84 | 82 |
All other revenue | 0 | 0 | 0 |
Foreign exchange trading services | 64 | 84 | 82 |
Operating Segments | Investment Management | Securities finance | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | 14 | 9 | 0 |
Securities finance | 14 | 9 | 0 |
Operating Segments | Investment Management | Processing fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | 27 | 29 | (5) |
Software and processing fees | 27 | 29 | (5) |
Operating Segments | Investment Management | Total fee revenue | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 1,944 | 1,908 | 1,981 |
All other revenue | 41 | 38 | (5) |
Total fee revenue | 1,985 | 1,946 | 1,976 |
Operating Segments | Investment Management | Net interest income | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | (11) | (24) | (20) |
Net interest income | (11) | (24) | (20) |
Operating Segments | Investment Management | Total other income | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | 0 | 0 | 0 |
Total other income | 0 | 0 | 0 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | (8) |
All other revenue | 0 | 0 | 0 |
Servicing fees | 0 | 0 | (8) |
Management fees | 0 | 0 | 0 |
Foreign exchange trading services | 0 | 0 | 0 |
Securities finance | 0 | 0 | 0 |
Software and processing fees | 0 | 0 | 0 |
Total fee revenue | 0 | 0 | (8) |
Net interest income | 0 | 0 | 0 |
Total revenue | 0 | 0 | (8) |
Total other income | 0 | 0 | 0 |
Other | Servicing fees | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | (8) |
All other revenue | 0 | 0 | 0 |
Servicing fees | 0 | 0 | (8) |
Other | Management fees | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | 0 | 0 | 0 |
Management fees | 0 | 0 | 0 |
Other | Foreign exchange trading services | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | 0 | 0 | 0 |
Foreign exchange trading services | 0 | 0 | 0 |
Other | Securities finance | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | 0 | 0 | 0 |
Securities finance | 0 | 0 | 0 |
Other | Processing fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | 0 | 0 | 0 |
Software and processing fees | 0 | 0 | 0 |
Other | Total fee revenue | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | (8) |
All other revenue | 0 | 0 | 0 |
Total fee revenue | 0 | 0 | (8) |
Other | Net interest income | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | 0 | 0 | 0 |
Net interest income | 0 | 0 | 0 |
Other | Total other income | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | 0 | 0 |
All other revenue | 0 | 0 | 0 |
Total other income | $ 0 | $ 0 | $ 0 |
Non-U.S. Activities - Schedule
Non-U.S. Activities - Schedule Of Results From Non-U.S. Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 11,703 | $ 11,756 | $ 12,131 |
Income before income taxes | 2,899 | 2,712 | 3,101 |
Non-U.S. | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5,252 | 5,230 | 5,190 |
Income before income taxes | 1,146 | 1,248 | 1,294 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 6,451 | 6,526 | 6,941 |
Income before income taxes | $ 1,753 | $ 1,464 | $ 1,807 |
Non-U.S. Activities - Narrative
Non-U.S. Activities - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 314,706 | $ 245,610 |
Non-U.S. | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 111,300 | $ 83,280 |
Parent Company Financial Stat_3
Parent Company Financial Statements - Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |||
Total revenue | $ 11,703 | $ 11,756 | $ 12,131 |
Other | 965 | 1,262 | 1,176 |
Total expenses | 8,716 | 9,034 | 9,015 |
Income tax expense | 479 | 470 | 508 |
Equity in undistributed income of consolidated subsidiaries and unconsolidated entities: | |||
Net income | 2,420 | 2,242 | 2,593 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash dividends from consolidated banking subsidiary | 2,721 | 3,300 | 785 |
Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities | 118 | 285 | 41 |
Other, net | 92 | 149 | 58 |
Total revenue | 2,931 | 3,734 | 884 |
Interest expense | 324 | 415 | 381 |
Other | 172 | 108 | 162 |
Total expenses | 496 | 523 | 543 |
Income tax expense | (109) | (91) | (127) |
Income before equity in undistributed income of consolidated subsidiaries and unconsolidated entities | 2,544 | 3,302 | 468 |
Equity in undistributed income of consolidated subsidiaries and unconsolidated entities: | |||
Consolidated banking subsidiary | (277) | (1,070) | 1,944 |
Consolidated non-banking subsidiaries and unconsolidated entities | 153 | 10 | 181 |
Net income | $ 2,420 | $ 2,242 | $ 2,593 |
Parent Company Financial Stat_4
Parent Company Financial Statements - Statement of Condition (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Interest-bearing deposits with banks | $ 116,960 | $ 68,965 | ||
Trading account assets | 815 | 914 | ||
Investment securities available-for-sale | 59,048 | 53,815 | ||
Other assets | 36,510 | 34,011 | ||
Total assets | 314,706 | 245,610 | ||
Liabilities: | ||||
Total liabilities | 288,506 | 221,179 | ||
Shareholders’ equity | 26,200 | 24,431 | $ 24,737 | $ 22,270 |
Total liabilities and shareholders' equity | 314,706 | 245,610 | ||
Parent Company | ||||
Assets: | ||||
Interest-bearing deposits with banks | 492 | 428 | ||
Trading account assets | 412 | 393 | ||
Investment securities available-for-sale | 100 | 250 | ||
Consolidated banking subsidiary | 26,204 | 25,451 | ||
Consolidated non-banking subsidiaries | 8,807 | 7,240 | ||
Unconsolidated entities | 124 | 117 | ||
Consolidated banking subsidiary | 81 | 0 | ||
Consolidated non-banking subsidiaries and unconsolidated entities | 3,885 | 3,361 | ||
Other assets | 277 | 270 | ||
Total assets | 40,382 | 37,510 | ||
Liabilities: | ||||
Accrued expenses and other liabilities | 557 | 696 | ||
Long-term debt | 13,625 | 12,383 | ||
Total liabilities | 14,182 | 13,079 | ||
Shareholders’ equity | 26,200 | 24,431 | ||
Total liabilities and shareholders' equity | $ 40,382 | $ 37,510 |
Parent Company Financial Stat_5
Parent Company Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities: | |||
Net cash provided by operating activities | $ 3,532 | $ 5,690 | $ 10,175 |
Investing Activities: | |||
Net decrease (increase) in interest-bearing deposits with consolidated banking subsidiary | (47,995) | 4,075 | (5,813) |
Purchases of available-for-sale securities | (37,873) | (38,164) | (31,814) |
Net cash (used in) by investing activities | (65,534) | (2,626) | (4,496) |
Financing Activities: | |||
Proceeds from issuance of long-term debt, net of issuance costs | 2,489 | 1,495 | 995 |
Payments for long-term debt | (1,724) | (402) | (1,461) |
Proceeds from issuance of preferred stock, net of issuance costs | 0 | 0 | 495 |
Proceeds from issuance of common stock, net of issuance costs | 0 | 0 | 1,150 |
Payments for redemption of preferred stock | (500) | (750) | 0 |
Repurchases of common stock | (515) | (1,585) | (350) |
Repurchases of common stock for employee tax withholding | (78) | (81) | (124) |
Payments for cash dividends | (889) | (930) | (828) |
Net cash provided by (used in) financing activities | 62,167 | (2,974) | (4,471) |
Net increase | 165 | 90 | 1,208 |
Cash and due from banks at beginning of period | 3,302 | 3,212 | 2,004 |
Cash and due from banks at end of period | 3,467 | 3,302 | 3,212 |
Parent Company | |||
Operating Activities: | |||
Net cash provided by operating activities | 3,513 | 2,684 | 2,250 |
Investing Activities: | |||
Net decrease (increase) in interest-bearing deposits with consolidated banking subsidiary | (64) | 58 | 46 |
Proceeds from sales and maturities of available-for-sale securities | 1,000 | 900 | 0 |
Purchases of available-for-sale securities | (849) | (921) | (224) |
Investments in consolidated banking and non-banking subsidiaries | (7,406) | (6,165) | (4,883) |
Sale or repayment of investment in consolidated banking and non-banking subsidiaries | 4,999 | 5,345 | 2,472 |
Net cash (used in) by investing activities | (2,320) | (783) | (2,589) |
Financing Activities: | |||
Proceeds from issuance of long-term debt, net of issuance costs | 2,489 | 1,495 | 996 |
Payments for long-term debt | (1,700) | (50) | (1,000) |
Proceeds from issuance of preferred stock, net of issuance costs | 0 | 0 | 495 |
Proceeds from issuance of common stock, net of issuance costs | 0 | 0 | 1,150 |
Payments for redemption of preferred stock | (500) | (750) | 0 |
Repurchases of common stock | (515) | (1,585) | (350) |
Repurchases of common stock for employee tax withholding | (78) | (81) | (124) |
Payments for cash dividends | (889) | (930) | (828) |
Net cash provided by (used in) financing activities | (1,193) | (1,901) | 339 |
Net increase | 0 | 0 | 0 |
Cash and due from banks at beginning of period | 0 | 0 | 0 |
Cash and due from banks at end of period | $ 0 | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jan. 14, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 31, 2015 |
Subsequent Event [Line Items] | ||||||
Preferred stock cash dividend | $ 152,000,000 | $ 210,000,000 | $ 188,000,000 | |||
Series F Preferred Stock | ||||||
Subsequent Event [Line Items] | ||||||
Preferred stock, shares outstanding (in shares) | 7,500 | |||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||
Preferred stock cash dividend | $ 47,000,000 | $ 40,000,000 | ||||
Series F Preferred Stock | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Redemption price | $ 500,000,000 | |||||
Preferred shares to be redeemed (in shares) | 5,000 | |||||
Preferred stock, shares outstanding (in shares) | 7,500 | |||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||
Preferred stock cash dividend | $ 953.38 | $ 7,000,000 | ||||
Series F Preferred Stock, Depository Share | ||||||
Subsequent Event [Line Items] | ||||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||
Series F Preferred Stock, Depository Share | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||
Preferred stock cash dividend | $ 9.5338 |