Variable interest entities

6 Months Ended

Jun. 30, 2022

Securitizations And Variable Interest Entities Disclosure [Abstract]

Variable interest entities

Variable interest entities

We have variable interests in variable interest entities (“VIEs”), which include investments in retail, institutional and alternative investment funds, including CLO structures in which we provide asset management services, some of which are consolidated.

We earn management fees from these funds as well as performance fees in certain funds and may also provide start-up capital for new funds. The funds are primarily financed by our customers’ investments in the funds’ equity or debt.

Additionally, we invest in qualified affordable housing and renewable energy projects, which are designed to generate a return primarily through the

realization of tax credits. The projects, which are structured as limited partnerships and limited liability companies, are also VIEs, but are not consolidated.

The following table presents the incremental assets and liabilities included in the consolidated balance sheet as of June 30, 2022 and Dec. 31, 2021. The net assets of any consolidated VIE are solely available to settle the liabilities of the VIE and to settle any investors’ ownership liquidation requests, including any seed capital we invested in the VIE.

Consolidated investment management funds
	June 30, 2022		Dec. 31, 2021
(in millions)
Trading assets	$	191	$	443
Other assets	5		19
Total assets (a)	$	196	$	462
Other liabilities	$	1	$	3
Total liabilities (b)	$	1	$	3
Nonredeemable noncontrolling   interests (c)	$	7	$	196

(a)    Includes voting model entities (“VMEs”) with assets of $105 million at June 30, 2022 and $187 million at Dec. 31, 2021.

(b)    Includes VMEs with liabilities of $1 million at June 30, 2022 and $2 million at Dec. 31, 2021.

(c)    Includes VMEs with nonredeemable noncontrolling interests of $7 million at June 30, 2022 and $43 million at Dec. 31, 2021.

We have not provided financial or other support that was not otherwise contractually required to be provided to our VIEs. Additionally, creditors of any consolidated VIEs do not have any recourse to the general credit of BNY Mellon.

Non-consolidated VIEs

As of June 30, 2022 and Dec. 31, 2021, the following assets and liabilities related to the VIEs where we are not the primary beneficiary were included in our consolidated balance sheets and primarily related to accounting for our investments in qualified affordable housing and renewable energy projects.

The maximum loss exposure indicated in the following table relates solely to our investments in, and unfunded commitments to, the VIEs.

Non-consolidated VIEs	June 30, 2022						Dec. 31, 2021
(in millions)	Assets		Liabilities		Maximum loss exposure		Assets		Liabilities		Maximum loss exposure
Securities – Available-for-sale (a)	$	162	$	—	$	162	$	189	$	—	$	189
Other	2,384		623		3,022		2,385		543		2,946

(a)    Includes investments in the Company’s sponsored CLOs.